Singapore Technologies Engineering Ltd (OTCPK:SGGKF) Q2 2024 Earnings Conference Call August 13, 2024 11:00 PM ET Company Participants Chee Keng Foo - Group CFO Sy Feng Chong - Group President, CEO & Director Lee Chew - Group Chief Commercial Officer of Market Development and President of Smart City & Digital Solutions Ravinder Singh - Group COO of Technology & Innovation and President of Defense & Public Security Jeffery Lam - Group COO Conference Call Participants Kenneth Tan - CGS Rahul Bhatia - HSBC Suk ...

| --- | --- | |-------|-------| | | | | | | | | | | | | 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 ...

Singapore Technologies Engineering Ltd (OTCPK:SGGKF) Q4 2023 Results Conference Call February 28, 2024 10:00 PM ET Company Participants Chee Keng Foo - Group Chief Financial Officer Sy Feng Chong - Group President, CEO & Director Wai Meng Lam - President of Commercial Aerospace Lee Chew Tan - Group Chief Commercial Officer of Market Development and President of Smart City & Digital Solutions Ravinder Singh - Group COO of Technology & Innovation and President of Defense & Public Security Conference Call Part ...

Singapore Technologies Engineering Ltd (OTCPK:SGGKF) Q2 2023 Earnings Conference Call August 10, 2023 11:00 PM ET Company Participants Cedric Foo - Chief Financial Officer Vincent Chong - Group President & Chief Executive Officer Tan Lee Chew - Group Chief Commercial Officer, Market Development & President Smart City & Digital Solutions Ravinder Singh - Group Chief Operating Officer, Commercial Technology and Innovation and President Defense and Public Securities Jeffrey Lam - President-Commercial Aerosapce ...

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 ...

Singapore Technologies Engineering Ltd. (OTCPK:SGGKF) Q2 2022 Earnings Conference Call August 11, 2022 11:00 PM ET Company Participants Cedric Foo - Chief Financial Officer Vincent Chong - Group President & Chief Executive Officer Jeff Lam - President & Head of Commercial Aerospace Ravinder Singh - Chief Operating Officer Lee Chew Tan - President of Commercial Business Conference Call Participants Rahul Bhatia - HSBC Jame Osman - Citigroup Siew Khee - CIMB Lorraine Tan - Morningstar Operator Good morning, l ...

| --- | --- | |-------|-------| | | | | | | | | | 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 ...

Singapore Technologies Engineering Ltd (OTCPK:SGGKF) Q4 2021 Results Conference Call February 24, 2022 10:00 PM ET Company Participants Sylvia Lee - Manager, IR Cedric Foo - Group CFO Vincent Chong - Group President, CEO & Director Jeff Lam - President & Head, Commercial Aerospace Ravinder Singh - Group COO, Technology & Innovation Lee Chew Tan - President of Commercial Business Conference Call Participants Rahul Bhatia - HSBC Siew Khee - CIMB Jason Lam - DBS Lorraine Tan - Morningstar Sylvia Lee Good morni ...

| --- | --- | |-----------------------------------------|-------| | | | | | | | | | | First-Half 2021 Results 12 August 2021 | | Agenda • New Segment Reporting • Group Highlights • Outlook • Segment Highlights • Appendix ť ST Engineering New Segment Reporting New Segment Reporting Three business segments Group Defence & Public Security (DPS) Commercial Aerospace (CA) Urban Solutions & Satcom (USS) 4 | New Segment Reporting Nine Sub-segments Commercial Aerospace Urban Solutions & Satcom Commercial Defence & ...