For income investors, few things feel better than opening a results announcement and spotting a higher dividend than expected. In Singapore, these pay-outs often feel like financial “ang pows”. With the Lunar New Year just around the corner, these small but meaningful rewards for staying invested through the ups and downs are once again front of mind for many. Looking ahead, the outlook for 2026 is quietly improving which could create room for higher dividends. If you are hoping for a bigger dividend “ang p ...

Financial Data and Key Metrics Changes - Group revenue increased by 14% year-on-year to $5.5 billion for the first half of 2024 [3] - Group EBIT rose by 18% year-on-year to $523 million [6] - Group profit before tax increased by 19% year-on-year to $416 million [3] - Group net profit grew by 20% year-on-year to $337 million [6] Business Line Data and Key Metrics Changes - Commercial Aerospace (CA) segment revenue grew by 20% to $2.2 billion, driven by MRO and aerostructure sub-segments [7] - Defense and Public Security (DPS) segment revenue increased by 12% year-on-year to $2.4 billion [12] - Urban Solutions and Satcom (USS) segment revenue grew by 3% year-on-year to $918 million [8] Market Data and Key Metrics Changes - Revenue breakdown by customer location: Asia 50%, U.S. 24%, Europe 20%, others 6% [6] - International market sales exceeded $500 million in the first half of 2024 [12] Company Strategy and Development Direction - The company aims to leverage opportunities in aerospace, smart city, defense, and public security sectors [17] - Focus on transitioning customers to the new Intuition platform in the Satcom segment [11] - The company maintains a robust order book of $27.9 billion, with $4.9 billion expected to be delivered in the second half of 2024 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term sustainable growth despite ongoing challenges in the operating environment [17] - The company anticipates stronger financial performance in the second half of 2024 compared to the first half [12] Other Important Information - The company announced an interim tax-exempt cash dividend of $0.04 per ordinary share [16] - Total borrowings remained flat at S$6.1 billion due to a stronger U.S. dollar [15] Q&A Session Summary Question: What is the biggest bottleneck hindering margins in aerospace? - Management indicated that supply chain challenges and parts availability are significant issues affecting margins [30] Question: What is driving the spike in depreciation and associate profits in the first half? - The increase in depreciation is attributed to the D'Crypt acquisition and amortization of the order book backlog [32] Question: How much did TransCore grow year-on-year in the second quarter? - TransCore experienced double-digit growth, contributing positively to the USS segment [28] Question: What is the impact of Airbus LEAP engine delivery delays on MRAS? - MRAS has performed well despite challenges, and the company is managing efficiency and productivity [34] Question: What are the margin expectations for the DPS division? - Management aims to maintain double-digit margins, with current margins around 13.7% [50]

| --- | --- | |-------|-------| | | | | | | | | | | | | Disclaimer The forward-looking statements in this presentation reflect the Company's current intentions, plans, expectations, assumptions and beliefs about future events as at the date of this presentation. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Some examples of these risk factors include disruption to globa ...

Financial Data and Key Metrics Changes - The company reported its full year 2023 results, highlighting significant changes in financial performance, although specific figures were not detailed in the provided text [3]. Business Line Data and Key Metrics Changes - The presentation will cover discussions of each business segment, indicating that there are likely variations in performance across different lines of business, but specific data was not provided in the excerpts [3]. Market Data and Key Metrics Changes - The company will address its order book and debt profile, which are critical indicators of market performance and financial health, but specific market data was not included in the provided text [3]. Company Strategy and Development Direction - The agenda includes discussions on dividends and outlook, suggesting a focus on future growth strategies and potential returns to shareholders, although specific strategic initiatives were not detailed in the excerpts [3]. Management Comments on Operating Environment and Future Outlook - The management will provide remarks on the operating environment and future prospects, indicating an awareness of external factors affecting performance, but specific comments were not included in the provided text [3]. Other Important Information - The conference call included a Q&A session, which is a platform for stakeholders to engage with management, but details of the questions and answers were not provided in the excerpts [3]. Q&A Session Summary - The Q&A session will follow the management's remarks, allowing for further clarification on the company's performance and strategy, but specific questions and answers were not included in the provided text [3].

Financial Data and Key Metrics Changes - Group revenue increased by 14% year-on-year to $4.9 billion, with EBITDA rising 16% to $711 million and EBIT up 15% to $444 million [4][8] - Group net profit remained flat at $281 million, reflecting strong underlying business performance despite the absence of one-off gains from the previous year [4][15] Business Line Data and Key Metrics Changes - Commercial Aerospace revenue grew by 32% to $1.9 billion, driven by recovery in engines and components businesses [19][20] - Defense and Public Security (DPS) revenue increased to $2.1 billion, showing a 6% growth when rebased for the divestment of US Marine [9][25] - Urban Solutions and Satcom (USS) revenue rose by 18% to $891 million, with expectations for stronger deliveries in the second half of 2023 [10][27] Market Data and Key Metrics Changes - Revenue by customer location: Asia 50%, US 24%, Europe 20%, and others 7% [7] - New contract wins totaled $9.5 billion in the first half of 2023, with a record order book of $27.7 billion [47][76] Company Strategy and Development Direction - The company aims to sustain growth in Commercial Aerospace and DPS while addressing challenges in the Satcom segment through restructuring and transformation [52][72] - Focus on achieving earnings accretion from TransCore by the second year post-acquisition, with ongoing efforts to capture productivity benefits [54][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in Commercial Aerospace and the potential for growth in international defense contracts [62][67] - The company anticipates a stronger second half for the USS segment, supported by new project milestones and cost savings from workforce rightsizing [74][76] Other Important Information - The company issued a second interim dividend of $0.04 per share, reflecting confidence in financial performance [80] - The restructuring of the Satcom business is expected to yield annual cost savings of $40 million to $60 million, enhancing competitiveness [39][72] Q&A Session Summary Question: Regarding the strong EBIT margins in CA and DPS, can this be considered a base for the future? - Management noted that strong margins were supported by the absence of US Marine losses and project delivery timing, indicating a positive outlook for future margins [81][84] Question: What are the key levers driving TransCore's earnings accretion? - Earnings accretion will depend on revenue from project milestones and cost savings, with confidence in achieving targets [86][87] Question: Is there capacity for further revenue growth in Commercial Aerospace? - The company is expanding capacity with new hangars and expects continued growth in engine and component businesses [88][90] Question: What are the projected timelines for realizing full annual cost savings from Satcom restructuring? - Full annual cost savings are expected to be realized over the next five years, with immediate savings from workforce reduction [99]

Financial Data and Key Metrics Changes - The Group recorded a revenue of $9 billion in FY 2022, representing a 17% increase year-on-year [4][5] - EBIT increased by 9% to $735 million, while profit before tax (PBT) and net profit decreased by 6% to $597 million and $535 million, respectively [5][18] - The Group's base operating performance (BOP) EBIT improved by 55% year-on-year, from $469 million in FY 2021 to $727 million in FY 2022 [14][15] Business Segment Data and Key Metrics Changes - Commercial Aerospace revenue grew by 21% to nearly $3 billion, with EBIT increasing by 65% despite a $150 million reduction in government support [11][16] - Urban Solutions and Satcom revenue surged by 49%, with EBIT up 13% despite integration expenses from Transcore [69] - Defense and Public Security revenue grew by 6%, but EBIT dropped by 13% due to the absence of government support and energy inflation impacts [73] Market Data and Key Metrics Changes - Asia constituted 50% of the Group's revenue, followed by the U.S. at 25%, Europe at 18%, and others at 7% [10] - The order book balance at the end of 2022 was $23 billion, a 31% increase from $17.5 billion in 2021, with $7.2 billion expected to be delivered in 2023 [21][75] Company Strategy and Development Direction - The Group aims to capitalize on the recovery in the aviation industry and improve productivity initiatives [29][35] - The acquisition of Transcore is expected to be earnings accretive from the second year of acquisition, with a focus on portfolio management and divestment of non-performing units [37][39] - A joint venture with SF Airlines for an airframe MRO facility in China is anticipated to enhance growth in the Commercial Aerospace segment [13][56] Management's Comments on Operating Environment and Future Outlook - The management acknowledged challenges such as high inflation, supply chain disruptions, and geopolitical tensions affecting the global economy [34][35] - The Group is optimistic about future growth, supported by a robust order book and ongoing investments in technology and innovation [31][77] - Management emphasized the importance of cost-saving initiatives to mitigate the impact of reduced government support and inflation [43][51] Other Important Information - The Board recommended a final dividend of $0.04 per share, bringing the total dividend for the year to $0.16 per share [28][78] - The Group's weighted average borrowing cost for FY 2022 was 2.4%, with expectations for it to rise to the low 3% range in 2023 [27][29] Q&A Session Summary Question: What is the expected margin sustainability for the DPS segment? - Management indicated that the DPS segment's revenue growth was 6%, and without the U.S. Marine losses, it would have been 8%. They expect margins to improve moving forward as the U.S. Marine losses are no longer a factor [80][84] Question: What are the expectations for labor costs and availability in 2023? - Management acknowledged ongoing wage inflationary pressures and indicated that they are actively working on recruitment and retention strategies. Hangar availability is currently maxed out due to high demand for MRO and PTF conversion [86][89] Question: Can you provide insights on Transcore's business seasonality and EBIT margin? - Management confirmed that Transcore's business is project-based and subject to seasonality. They also noted that the EBIT margin is expected to improve as integration costs decrease [94][97] Question: What is the status of the Commercial Aerospace asset securitization? - The Group plans to outplace aviation assets to free up about $500 million in cash by mid-2023, with expectations to achieve EBIT margin breakeven for the P2F program during the year [115] Question: What is the nature of energy inflation impacting the business? - Management clarified that energy inflation primarily relates to electricity prices, which they attempt to pass on to customers where possible [113]

| --- | --- | |-------|-------| | | | | | | | | | Disclaimer The forward-looking statements in this presentation reflect the Company's current intentions, plans, expectations, assumptions and beliefs about future events as at the date of this presentation. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Some examples of these risk factors include disruption to global supp ...

Financial Data and Key Metrics Changes - The company reported a 17% year-on-year growth in group revenue, reaching $4.3 billion for the first half of 2022, despite a drop of $125 million in government support to almost nil [6]. Business Line Data and Key Metrics Changes - Specific details regarding individual business lines were not provided in the available content. Market Data and Key Metrics Changes - The content does not include specific market data or key metrics changes. Company Strategy and Development Direction and Industry Competition - The company highlighted potential risks and uncertainties affecting future performance, including COVID-19, the Russian-Ukraine conflict, inflation, and global supply chain disruptions [5]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged that actual future performance may differ materially from forward-looking statements due to various risks and uncertainties [5]. Other Important Information - The agenda for the briefing included financial highlights, segment discussions, and an outlook, followed by a Q&A session [2][6]. Q&A Session Summary - The content does not provide specific questions and answers from the Q&A session.

| --- | --- | |-------|-------| | | | | | | | | | Disclaimer The forward-looking statements in this presentation reflect the Company's current intentions, plans, expectations, assumptions and beliefs about future events. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions especially given the evolving COVID-19 situation and its impact globally. Representative examples of these ...

Financial Data and Key Metrics Changes - Group revenue for FY 2021 was $7.7 billion, a 7.5% increase year-on-year [3] - EBIT increased to $674 million, reflecting a 13% year-on-year growth [4] - Profit before tax (PBT) rose to $638 million, a 19% increase year-on-year [4] - Net profit reached $571 million, up 9% year-on-year, impacted by reduced government support [4][9] - The order book at the end of 2021 was $19.3 billion, significantly higher than $15.4 billion at the end of 2020 [12] Business Segment Data and Key Metrics Changes - Commercial Aerospace revenue grew 6% year-on-year, with EBIT increasing by 125% due to higher revenue and cost savings [32] - Urban Solutions and Satcom (USS) revenue increased by 8%, but EBIT dropped 18% due to M&A expenses and chip shortages [33] - Defense and Public Security (DPS) revenue also grew by 8%, but EBIT decreased by 4% due to lower government support [34] Market Data and Key Metrics Changes - Revenue breakdown by region showed Asia at 58%, the U.S. at 20%, Europe at 16%, and others at 6% [7] - The group experienced strong contract wins, securing $11.7 billion in new contracts for 2021, surpassing pre-pandemic levels [39] Company Strategy and Development Direction - The company aims to achieve sustainable growth by focusing on recovery in Commercial Aerospace, growth in Smart City initiatives, and expanding its International Defense business [40][41] - The proposed acquisition of TransCore is expected to enhance growth in the Smart City domain [33][42] - The company has set specific financial targets for 2026, including revenue growth in various segments [40][41] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in future performance, citing a robust order book and ongoing business recovery [21][22] - The company plans to offset the reduction in government support through cost-saving initiatives and business recovery [62] - Management acknowledged challenges such as semiconductor shortages and labor availability but emphasized resilience and strategic investments [50][51][56] Other Important Information - The Board proposed a final dividend of $0.10 per share, with a total dividend for FY 2021 of $0.15 per share [18][19] - A new dividend policy was approved to declare dividends quarterly instead of semiannually [20][46] Q&A Session Summary Question: Impact of semiconductor chip shortages - Management indicated that while some business segments are affected, the overall impact at the group level is not material, and steps are being taken to diversify supply sources [50][51] Question: CapEx investments for the year - The company confirmed it will continue to invest in CapEx to support long-term growth despite short-term challenges [51] Question: Effects of interest rate hikes and inflation - The company has an interest rate hedging policy in place and is prepared for potential impacts from rising rates [54] Question: Hiring plans for the year - The company plans to hire in growth areas, particularly in commercial aerospace and digital sectors [53][56][58]