Financial Data and Key Metrics Changes - The Group recorded a revenue of 9billioninFY2022,representinga17735 million, while profit before tax (PBT) and net profit decreased by 6% to 597millionand535 million, respectively [5][18] - The Group's base operating performance (BOP) EBIT improved by 55% year-on-year, from 469millioninFY2021to727 million in FY 2022 [14][15] Business Segment Data and Key Metrics Changes - Commercial Aerospace revenue grew by 21% to nearly 3billion,withEBITincreasingby65150 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 23billion,a3117.5 billion in 2021, with 7.2billionexpectedtobedeliveredin2023[21][75]CompanyStrategyandDevelopmentDirection−TheGroupaimstocapitalizeontherecoveryintheaviationindustryandimproveproductivityinitiatives[29][35]−TheacquisitionofTranscoreisexpectedtobeearningsaccretivefromthesecondyearofacquisition,withafocusonportfoliomanagementanddivestmentofnon−performingunits[37][39]−AjointventurewithSFAirlinesforanairframeMROfacilityinChinaisanticipatedtoenhancegrowthintheCommercialAerospacesegment[13][56]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Themanagementacknowledgedchallengessuchashighinflation,supplychaindisruptions,andgeopoliticaltensionsaffectingtheglobaleconomy[34][35]−TheGroupisoptimisticaboutfuturegrowth,supportedbyarobustorderbookandongoinginvestmentsintechnologyandinnovation[31][77]−Managementemphasizedtheimportanceofcost−savinginitiativestomitigatetheimpactofreducedgovernmentsupportandinflation[43][51]OtherImportantInformation−TheBoardrecommendedafinaldividendof0.04 per share, bringing the total dividend for the year to 0.16pershare[28][78]−TheGroup′sweightedaverageborrowingcostforFY2022was2.4500 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]
