INVESTOR - Singapore Exchange

INVESTORDAY

22 MARCH 2018

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Build Upon Our

Position of Strength

Strong returns since

formation in 1997…

…provides solid foundations

for next stage of growth

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Focus Areas for Growth

By 2022, we expect steady state revenue of more than

S$400m per annum from our Passenger-to-Freighter business

Strengthen Core Businesses

| Aerospace

Strengthen and

grow engineering

and MRO

Invest in new

growth areas

Seed the

future with

unmanned

technologies

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Enhance our

product offerings

for the future

Strengthen US

business to

position for upturn

Grow our

environmental

engineering

business

By 2022, we expect Marine sector revenue to recover

to 2013 to 2014 levels, subject to the business cycle

Strengthen Core Businesses

| Marine

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Pursue Growth Opportunities

| Defence Export

Leverage

proven

successes

in defence

capabilities and

export wins

Focus on

developing

targeted products

and solutions

Focus on

specific

markets

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Significant

and growing

market

opportunity

Build upon core

competencies

and end-to-end

capabilities

Leverage

Singapore track

record; positioned

for overseas

success

Pursue Growth Opportunities

| Smart City

Expect Smart City revenue of S$1b in 2017 to more than

double by 2022

Icon to be

amended to

have >2x in

circle

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Our Smart City Offerings and Track

Records Match Needs of Smart Cities

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Develop Businesses through

New Enterprises and Ventures

Judicious evaluation

of growth opportunities

Strategic Fit

Ability to Win

Market Attractiveness

Strategic Analysis

Internal Rate of

Return ThresholdNet Present Value

Go/ No-go Investment

New growth

opportunities

Health Tech

Digital

1

2

3

4

…

…

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Recognise Challenges and New

Realities as We Pursue Growth

Singapore as

important

reference market

Future growth

largely from global

markets

Leverage strength

of integrated

approach

New go-to-

market models

and M&A focus

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Aspiration: Global Technology,

Defence & Engineering Powerhouse

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People & Culture

People are

our strengthsStrengthen

leadership bench

• Build strong sense

of purpose

and belonging

• Strengthen capacity

and capability

for growth

• Drive key focus areas

- Shared Services

- Digitalisation

- New lines of businesses

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Customers & Marketing

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ST Engineering

Masterbrand

Build marketing presence

and capabilities

Develop new

capabilities

Technology & Innovation

Build, partner and acquire

to develop technology capabilities

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Capacity For Growth

Financial

Strength

• Strong balance

sheet provides

capacity to grow

and sustain

dividends

• Cost

optimisation

through Shared

Services

• Cumulative net

savings of

~S$150m over

next 5 years*

• Disciplined

approach to

go-to-market

models and

M&A

Efficiency &

Scalability

Portfolio

Management

Disciplined

Growth

• Diversified

portfolio

• Unlock value

and recycle

capital

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* versus business-as-usual

Strong Order Book

NEAR

TERMStrong order book of

S$13.2bprovides stability

and visibility on

near-term revenue

and cash flows

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Poised for Success

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Aviation Market Outlook

is Positive

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Sources: Boeing, Oliver Wyman, IBA, Counterpoint

44Kpassenger

aircraft by 2036

3Kdedicated

freighters by 2036

MRO Landscape

Key challenges:

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Strengthen and

grow engineering

and MRO

Invest in new

growth areas

Seed the

future with

unmanned

technologies

Strengthen Core Businesses

| Aerospace

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Strengthen and Grow

Engineering and MROMaintain lead through disciplined management,

safety culture and customer focus

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Strengthen Engineering and MRO

| PTF ConversionsEstablished leader through design and engineering capability

Strengthen portfolio of freighter solutions and extract incremental MRO synergies

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Strengthen Engineering and MRO

| Leverage on Technology

Our aim:

• E-enable our

workforce

• Improve customer

stickiness

• Offer new solutions

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Grow MRO

| Increase capacity and global footprintStrengthen regional presence in growth regions and key markets

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Source: Oliver Wyman

Invest in New Growth AreasAdjacencies that add value to MRO and offer competitive advantage via IP

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Seed the Future

Develop technologies that shape autonomous

networks and freighters

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Strengthen and

grow engineering

and MRO

Invest in new

growth areas

Seed the

future with

unmanned

technologies

Strengthen Core Businesses

| Aerospace

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Strengthen Core Businesses

| Marine

Strengthen US

business to

position for upturn

Enhance product

offerings for the

future

Grow

environmental

engineering

business

By 2022, we expect Marine sector revenue to recover to 2013 to 2014

levels, subject to the business cycle

Icon to be amended

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Competency in Naval Segment

Provides Resilience Against Downturn

Global Shipbuilding Orders

by mDWT (Last 10 Years)

Global naval shipbuilding

revenue forecast (US$b)

Sources: Barry Rogliano Salles, Clarksons Platou Source: Frost & Sullivan

Our business is cyclical in nature … … however heightened geopolitical

tensions increase defence spending

Year Year

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Strengthen US Business

to Position for UpturnWhy acquire rig repair assets?

• Invest at bottom of business cycle; acquire rig repair capabilities

• Superior location; closest to rigs deployed in Gulf of Mexico

• Reap operational synergy among the US yards

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Strengthen US Business

to Position for Upturn

• Gradual recovery in Gulf of Mexico (GoM) rig demand

• Increased defence spending with Trump’s administration augurs well with our US’

capabilities

Positive outlook in the US

Source: Seabrokers Feb‘18

Source: Morgan Stanley Jan’18

Year

Year

Source: Annual Plan for Construction of Navy Vessels for FY 2019

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GoM

Rig

Utilis

ation

(%

)

Execute Projects Well and Target

Addressable Markets

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Leverage Technology to Improve

Operational Efficiency

Yard of the future

Smart

Engineering

Smart

Manufacturing

Smart

Workplace

Smart

Warehouse

Smart

Asset Mgmt

Integrate

Product

Lifecycle

Management

with Design

and

Engineering

Automate

manufacturing

process via

robots and

video

analytics

Expand

usage of

sensors and

wearables to

create a safer

workplace

Use

technology to

track and

monitor

movement

of goods

Incorporate

technology

to track

utilisation,

condition

monitoring

and preventive

maintenance

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Enhance Product Offerings

for the Future

In-house Advanced SMS2* (NERVA)

equipped with:

• Intelligent Power Management

System

• Sense Making System

• Decision Support System

* Ship Management System & Sense Making System (SMS2)

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Develop a Suite

of Unmanned Solutions

• Unmanned Solutions

• Defence

• Para-military

• Commercial

• Other niche markets

• Unmanned ship-to-

shore connectors

• Unmanned

maritime platforms

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Improve Margins through

Cost Optimisation

Promote

Shared Services

• Reduce overhead

costs

• Drive alignment to

group’s policies

Improve

productivity

Increase

collaboration

• Continue to invest in

technology and automation

• Captured ~10% efficiency

improvement year-on-year

• Provide fast turnaround

engineering solutions

• Share design expertise

and leverage proven ship

designs

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Smart City: Grow Environmental

Engineering Business

Smart Environment

Solid waste

management

Water

treatment

Waste water

treatment

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Marine Business is

Strategic to the Group

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Strengthen Core Businesses

| Marine

Strengthen US

business to

position for upturn

Enhance product

offerings for the

future

Grow

environmental

engineering

business

By 2022, we expect Marine sector revenue to recover to 2013 to 2014

levels, subject to the business cycle

Icon to be amended

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Pursue Growth Opportunities

| Smart City

Significant

and growing

market

opportunity

Build upon

core competencies

and end-to-end

capabilities

Leverage

Singapore track

record; positioned

for overseas

success

Expect Smart City revenue of S$1b in 2017 to more than double by 2022

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Why Smart City?

By 2050, 86% of the

developed world and 64%

of developing world will

be urbanised

Strain on essential

public services

By 2040, developing

countries will consume

65% of energy

By 2025, two-thirds of

the world’s population

would face water

shortages

Rising global average

temperature

Extreme weather

conditions

By 2050, population aged

over 60 is set to double

to over 2 billion

Significant increase in

dependency ratio while

birth rate continues to fall

UrbanisationResource Scarcity

Climate ChangeDemographic

Change

Sources: United Nations Dept of Economic & Social Affairs, World Wildlife Fund, various/ 49

Smart City Global Market

Global Market

2016 - 2025

Global Market, by Major

Regions, 2025

Sources: IHS insights (2016) Expert interviews;

Frost & Sullivan (2017)

Sources: Frost & Sullivan (2017);

Persistence Market Research Pvt. Ltd

Ma

rket

Op

po

rtu

nit

y (

US

$)

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Our Smart City Global Presence

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Leverage Singapore Track Record

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Our Smart City

Solutions

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End-to-end Solutions –

Our Unique Differentiator

Enabled by integrated architecture/ 54

Public Safety & Security

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Public Safety & Security

Physical Security Solutions

Aviation Security

• Airport Operations

Collaboration System

• Air Traffic Smart Tower

• Communication and

Aircraft Identification

• Counter-Drone System

Maritime Security

• Seaport Security

• Coastal

Surveillance

• Vessel Tracking

• Asset Tracking

Key Installation Security

• Wide Area Security

• Perimeter Security

• Checkpoint Security

• Integrated Security

Management

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Cyber Security

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Grow Environmental

Engineering Business

Build on our first

success in JIDP*

US$185b addressable

market in APAC & MEA

• Leverage track record

to penetrate key target

markets

Smart water and waste

management technologies

• Use analytics to optimise

plant operations, improve

yield; reduce operational

and maintenance costs

Grow recurring income

through

• Public Private Partnership

and operation and

maintenance of infrastructure

assets

Cultivate an inventory

of smart technologies

Grow recurring

income streams

* Jurong Island Desalination Plant (JIDP)

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Smart Sensor Networks Deployment

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Internet of Things (IoT) Solutions

for Smart Cities

Integrated platform to enable smart city management solutions

IoT Platform and

Data Analytics

Software

Application

Traffic

Counters

Smart

Lighting Control

Waste

Sensors

Sewage Level

Monitoring

Parking &

Place Detection

Automatic

Meter Reading

Gateway

Noise &

Pollution Sensors

Smart Street Lighting/ 62

Legend

Integrated Estate Management

Applying data analytics and artificial intelligence to Smart Cities

EnvironmentLift Monitoring

Utilities Lighting

Gateway Water Meter SensorNoise & Temperature/ Humidity Sensor / 63

Digital Connectivity

through Satellite

Source: Ericsson Mobility Report, Nov 2016

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World Leader in

Satellite Communications

Close partnership with major satellite operators

Strong presence in key mobility and defence markets

75% of the world’s top 20 operators use our enterprise satellite

communication (satcom) system

Significant market share in global satcom TDMA* sites in service

MARITIME

60%AVIATION

46%MILITARY

41%

*Time-Division Multiple Access (TDMA)

Source: COMSYS VSAT Report, 14th Edition

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Digital Connectivity through Satellite

Developing differentiating products to address the growing

aviation and connected car markets

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Our Vision of Smart Mobility:

Connected, Seamless & Integrated

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Engineering the Future of Mobility

Operationalise new

mobility concepts

through leveraging

our end-to-end

capabilities

Leverage track

record in

Singapore

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Smart Rail Suite Solutions:

Strong Track Record in Rail

Transportation

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Smart Rail Suite Solutions:

Leading Solutions

Complete and comprehensive range of rail electronic

products and solutions

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Intelligent Road Transport Solutions:

Strong Track Record

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Intelligent Road Transport Solutions:

Suite of multimodal transport solutions

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Smart Mobility Platforms:

Building on Deep Mobility Expertise

50 years of engineering track record

Strong foundation in technologies and capabilities

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End-to-end Transportation

Solution: Competitive Edge

Autonomous Buses for “First-” & “Last-Mile”,

as part of the future Smart Mobility Systems

Leverage Singapore’s Smart Nation ecosystem to

accelerate speed of operationalisation

Participate in full value chain

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Autonomous Public Transport

Solutions

*Mobility on Demand Vehicles (MODV)

Operationalising Bus Fleets

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Autonomous

Public Transport

Solutions:

Leverage

Singapore

Ecosystem

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Smart Robotics for Every Smart City

Healthcare

Logistics

Industrial

Airport

SecurityHospitality

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Build Robotics Business

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Build Robotics Business in

Other Industry Verticals

Airport

Automation

Leverage capabilities for logistics automation in airports,

seaports and warehouses

Logistics

Automation

Industrial

Automation

Partner local players and system integrators to:

• Enhance regional market penetration

• Collaborate on industrial automation

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Pursue Growth Opportunities

| Smart City

Significant

and growing

market

opportunity

Build upon

core competencies

and end-to-end

capabilities

Leverage

Singapore track

record; positioned

for overseas

success

Expect Smart City revenue of S$1b in 2017 to more than double by 2022

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/ 90Figures shown are estimated addressable market size

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Customers & Marketing

ST Engineering

Masterbrand

Build marketing presence

and capabilities

Develop new

capabilities

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*

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Poised for Success

• THANK YOU

THANK

YOU