22nd Annual General Meeting18 April 2019

Resilient 2018 results, impacted by one-offs

Co-confidential2 |

1

0

4

2

3

5

7

6

8

$b

2017 2018

6.5 6.7+3%

Revenue (S$b) Net Profit (S$m)

503 494

0

100

200

300

400

500

600

$m

2017 2018

-2%

Resilient 2018 results, impacted by one-offs

Co-confidential3 |

1

0

4

2

3

5

7

6

8

$b

2017 2018

6.5 6.7+3%

Revenue (S$b) Net Profit (S$m)

503 494

0

100

200

300

400

500

600

$m

2017 2018

-2% • Strong underlying

operating performance

• One-off charges to

rationalise portfolio

• Investments in growth

initiatives and capabilities

Exclude one-off charges

482

527+9%

Value creation

Co-confidential4 |

Return on capital employed (%)

0%

4%

8%

12%

16%

2017

%

2016

13.6

12.0

2018

12.7

Total shareholder return (%)

7.3

0.9

7.1

4.8

4.6

4.4

12.1

20182016 2017

5.5

11.5

Dividend yield

Capital gain

Initiatives since 2016Positioning for growth

Strategy Synergies Portfolio mgt Invest for growth

Group strategy office

Aligned M&A with

Group strategy

Formed Management

Committee

Set up Strategy &

Finance Committee

Rationalised subsidiary

Boards

Legal Entity

Rationalisation

Strengthened Group

Marketing

Brand Harmonisation

Setting up Group Risk

& Assurance

Shared Services

Strategic Tech Centres

Treasury Centre

Divested China

Speciality Vehicles biz

Divested India Road

Const Eqm biz

Divested US Pilot

Training biz

Acquisition of MRAS

and Newtec

Strengthened Talent

Development Framework

Open Lab: Innosparks

Corporate Venture Capital

Group Digital Office

New Enterprises

& Ventures

Restructured ST Dynamics

to Future Tech Centre

Rationalised Brazil

Road Const Eqm and

Automotive MRO biz

Good progress with early wins

Int’l Defence Biz

Strengthen core: Acquired MRAS

Co-confidential7 |

1

“Strategic acquisition for the group which will reap benefits in

the long term, besides being earnings accretive”

OCBC Investment Research

Exhaust

Plug

Exhaust

Nozzle

Transcowl /

Blocker

Doors

Trust Reverser Actuation System

Fan CowlInlet

Engine Build-Up

Nacelle Engine

Major nacelle components• Largest acquisition

for the Group

• Focused strategy to

upscale capabilities

• Well received by

market

Strengthen core: Building order books 1

20142013 20182015 2016 2017

+49%

~S$750mNew orders in 2H 2018

Marine 2013-2018 Order BookOrder Book

Yr End 2018 $13.2b~$4.9b expected to be

delivered in 2019

Strengthen core: New Investments 1

Expansion of MRO complex,

Pensacola, Florida, USA

Total investment: US$210m

Our share of investment: US$35m

2nd Composite panel mfg. plant,

Kodersdorf, Saxony, Germany

Total investment: EUR 38m

20% external funding

10 |

Pursue growth: Smart City achievements2

Rollout

EV buses

in Singapore

CES 2019

Award Honoree

in Las Vegas

Ultra-Slim

2FA Encryption

Predictive

Maintenance

99.2% Accuracy

Accuracy predicting

Train Door Failure

in Middle East

AI powered

Traffic Management

System

Launched

Logistics RobotsMEXICO

Metallorum

Refinery

COLOMBIA

Electrical

Substation

Kuwait

Ministry of

Foreign Affairs

New Markets & Endorsements

Rail products

in 45 cities

Breakthrough

First Smart Street Lighting

Foray into USA

11 |

Pursue growth: Acquiring Newtec2

• Owns IPs & patents for key

Satcom technologies

• Designs, manufactures and

sells Satcom equipment

• Leading Satcom

equipment provider

About Newtec

12 |

• Revenue and cost

synergies

Acquiring Newtec to reinforce Satcom business

• Strong position for

future growth

• Differentiated and

complementary IP

• Earnings accretion

expected from Year 2

MaritimeAeronautical Land Enterprise

Cell Backhaul Consumer Broadcast

Key S

atc

om

ca

pa

bilit

ies

Ke

y c

us

tom

er

se

gm

en

tsS

trate

gic

pa

rtn

ers

hip

s

END-USERS

GROUND SEGMENT

LEO

MEO

GEOCONSTELLATIONS

SATELLIITE MANUFACTURERS

IP

Antennas,

Professional Equip

Hubs &

Line cards

Network

Mgt. System RemotesReference Design,

Licensing

Newtec’s value

proposition

13 |

Pursue growth: Int’l Defence BusinessAttractive market but competition intense

Next-Generation

Armoured Fighting

Vehicle

TERREX 2

Auxiliary Personnel

Lighters

Logistic Support

Vessels

2

World class products;

Enhance delivery to global markets

Secured new orders;

Building pipeline

Medium Unmanned

Surface Vessel Land Platforms

14 |

Priorities for 2019

Strengthen

Core

1

Pursue

Growth

2 4 5

Nurture

Capabilities

Develop new

Businesses

3

Integrate

Acquisitions

15 |

New Enterprises & Ventures

Adopt global mind-set

and context

1

Formulate strategy Build capability to execute

Apply engineering expertise in

healthcare settings

Collaborate with

Singapore ecosystem

Invest to operate

Build & Operate

A Global

HealthTech

Business

• Enhanced domain and

functional expertise

• Established HealthTech

network

• Active business development

2

3

4

Pursue our aspiration

16 |

Current participation in HealthTech business

• Hospital C2

Command Centre

• Integrated Security

Management

• Delivery Robots

• Medical Robots*

• Soldiers Vital Signs

Analytics

• AI Wound Analytics*

Healthcare IT

• Emergency

Response System

• Infrared Fever

Scanner Solution

Medical Devices

& DiagnosticsEmergency /

SafetyRobotics

* Through investment in HealthTech startups

17 |

Our 5-Year Plan (2018 – 2022)

Smart City

revenue (S$1b) to

more than double

Group net profits

grow in tandem

with revenues

Core and other businesses

grow at 2 – 3x global GDP

growth rate

2/3 of Group revenue growth

from global markets

Thank You