#1Financial Year 2022 Results 24 February 2023 ST Engineering#2ST Engineering 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 supply chains, general economic conditions, interest rate trends, inflationary pressure, shifts in customer demand, regulatory changes and natural disasters which may negatively impact business activities of the ST Engineering Group. No assurance can be given that future events will occur, or that assumptions are correct. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. 21#3Agenda Financial Highlights • Group Highlights Productivity Metrics • Debt Profile • Dividends • Outlook • Segment Highlights Question & Answer session ST Engineering Notes: • All amounts in millions of Singapore dollars unless otherwise stated • Amounts may not add to totals shown due to rounding All government support refers to COVID-19 related government support only#4Group Highlights ST Engineering#5Group Highlights ST Engineering ☐ Group Revenue 17% higher y-o-y ☐ EBIT 9% higher y-o-y, despite reduction of $203m in Covid-related govt. support 5 | Revenue 4,765 EBIT Revenue EBIT 351 9,035 735 +18% y-oy +10% y-oy +17% y-oy +9% y-oy PBT Net Profit PBT 246 255 597 -7% y-oy -6% y-oy -17% y-oy 2H2022 Order book as at 31 Dec 2022: $23.0b; about $7.2b to be delivered in 2023 Net Profit 535 FY2022 -6% y-oy#6Group Highlights 2022: Strong Performance Recovery from 2020 Covid year Revenue ($b) EBIT ($'m) Net Profit ($'m) 735 9.0 2 674 571 535 596 522 2 205 177 7.7 353 340 733 7.2 533 469 394 243 182 2020 2021 2022 2020 2021 2022 2020 2021 2022 61 Govt Support#7Group Highlights FY2022 Revenue Growth from all Segments (+7pp) $'m 582 (+7pp) 526 7,693 (+3pp) 234 9,035 2021 CA USS DPS 2022 7 | +17%#8Group Highlights Group FY2022 Revenue Breakdown ST Engineering FY2022 Revenue by segment $9.0b FY2022 Revenue by type $9.0b FY2022 Revenue by location of customers Commercial Defence USS 6.0 3.0 2.9 1.8 Asia U.S. CA 3.0 (33%) (20%) 4.8 2.6 4.6 50% 25% Europe 18% Others 7% 4.2 (47%) DPS 2020 2021 2022 CA: Commercial Aerospace USS: Urban Solutions & Satcom 8 | DPS: Defence & Public Security, and Others 2020 2021 2022 Note: DPS includes defence, public safety and security, critical information infrastructure and other commercial businesses, both local and overseas#9Group Highlights Recovery in Commercial Aerospace business 91 Revenue, $m 2,991 +21% • 2,465 2,332 +6% 2020 2021 2022 ST Engineering • 21% y-o-y revenue growth in FY2022 PTF1 Gross profit margin (GPM) at programme level turned positive in 4Q'2022 • 1PTF - Passenger-to-Freighter#10Group Highlights Commercial Aerospace Revenue grew with more growth expected Recovery as % of Dec-2019 Pre-Covid Level 90% 77% 80% 76% 74% 74% 74% 75% 71% 69% 70% 63% 59% 60% 55% 50% 40% 30% 20% 10% • • ST Engineering In Dec 2022, air travel has recovered to 77% of pre-Covid level. - - Domestic travel leads at 80% and International lags at 75% APAC international air travel at 52%1; yet to fully recover Re-opening of China is an opportunity Plan to set up airframe MRO JV with SF Airlines in Ezhou 0% Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 10 | Source: IATA Air Passenger Market Analysis Dec 2022 (dated 6 Feb 2023) 1 (RPK of Asia Pacific based airlines is at 52% pre-Covid level)#11Group Highlights Earnings Before Interest and Tax (EBIT) ☐ Base Operating Performance (BOP) 55% higher y-o-y $'m 674 729 2 258 205 -203 11 | 727 +55 469 +55% -36 72 -30 ST Engineering 735 2 733 2021 Govt. support Business 2022 growth BOP Energy inflation TC T&I exp. Pension cost savings 2022 & cost savings ↑+9% Govt Support TC T&I exp: TransCore transaction and integration expenses#12Group Highlights ST Engineering CA EBIT Strong EBIT y-o-y; despite reduction of $150m in government support 12 | $'m 182 240 2 208 238 152 -150 301 2 72 ■-11 299 30 2021 Govt. support Business growth & cost savings 2022 Energy inflation BOP Pension cost savings 2022 +65% Govt Support#13Group Highlights USS EBIT ☐ 13% higher y-o-y; despite TC T&I expenses and Satcom's product development investment ☐ Chip shortage impact about $20m for both 2022 and 2021 13 | $'m 26 2 -2. 24 37 61 -2 ST Engineering -30 29 29 2021 Govt. support Business 2022 Energy inflation TC T&I exp. 2022 growth & BOP cost savings +13% Govt Support#14Group Highlights DPS EBIT ST Engineering BOP 3% higher y-o-y with business growth and cost savings offsetting impact from U.S. Marine $'m 466 51 -51 428 13. +3% -23 405 -13% 14 | 415 2021 Govt. support Business growth & cost savings, net of U.S. Marine losses 2022 BOP Energy inflation 2022 Govt Support#15Group Highlights Net Profit BOP Net Profit 39% higher y-o-y; TransCore not yet earnings accretive in 2022 ST Engineering $'m 571 -75 551 (39% 2 -30 535. 2 -6% -22 53 258 177 ■-17. -203 549 EBIT:+55 394 2021 15 | Govt. support (before tax) 533 Business Finance 2022 growth costs, tax BOP Energy inflation TC T&I exp. & cost & NCI Tax exempt Pension effect of cost JSS1 savings 2022 savings - 1JSS Jobs Support Scheme Govt Support#16Group Highlights $13.1b New Contracts for FY2022, incl. $2.8b for 4Q2022 4Q2022 Commercial Aerospace $680m Urban Solutions & Satcom Defence & Public Security $1,393m $737m • Highlights • CFM56-7B heavy maintenance contracts • A320 Component MBHTM contract • • • PTF orders ST Engineering Electronic tolling/O&M contracts in New Jersey, Houston, Pennsylvania and Oklahoma Passenger Information System contract in Canada Water metering solutions in the U.S. and integrated smart security solutions in Singapore Satcom contracts with enterprises, governments and defence customers globally Digital solutions and services in Cloud, Data Centre and Training & Simulation Al-enabled Mission Critical Command and Control systems (incl. cybersecurity) Ship repair and maintenance contracts Road construction vehicles in the U.S. 16 | Total $2.8b#17Group Highlights Order Book Remains Robust 17 | Order Book ($b) 23.0 19.3 1.8 15.4 1.0 17.5 14.4 Dec-20 Dec-21 Dec-22 +31% US Marine (Divested in Nov'22) ST Engineering • $23b as at 31 Dec 2022 $7.2b expected to be delivered in 2023#18Productivity Metrics ST Engineering#19Productivity Metrics Productivity metrics trending well Opex/revenue % 13.5 13.5 13.0 % 40 ST Engineering Staff costs#/revenue 35 32.5 30.5 30 28.9 12.5 12.0 12.1 12.0 11.7* 30 11.5 11.0 2020 * 19 | 2021 25 2022 2020 Excluding M&A transaction expenses # 2021 2022 Staff costs excluding govt. support#20Debt Profile ST Engineering#21Debt Profile "Fixed vs Floating Interest Rate" Debt Profile - Balanced Fixed Rate 53% $3.4b $3.1b Floating Rate 47% 21 | $6.5b Borrowings as at 31 Dec 2022 ST Engineering • Fixed vs floating interest rate ratio of 53% 47% balanced and in accordance with interest rate hedging policy1 • . Marginal increase in Group weighted average borrowing cost for FY2022 - 2.4% (2022) vs 2.3% (2021) Weighted average borrowing cost of existing fixed rate borrowings is mid 2% • Plan to issue US$500m of fixed rate debt . • with T-lock gain amortisation of US$32m FY2023 weighted average cost of borrowings estimated to be low 3%² 12021 Annual Report, page 201 2 Assuming even if U.S. Fed Funds rate increases by up to 100bps from 4.5% -4.75% to peak at 5.5% - 5.75% in 2nd half of 2023#22Dividends ST Engineering#23Dividends FY2022 Final Dividend of 4.0 Cents per Share Dividend per Ordinary Share Interim Final Final 12.0¢ 10.0¢ 10.0¢ Interim Interim 5.0¢ 5.0¢ Final 4.0¢ FY2020 FY2021 FY2022 23 | ST Engineering • Final dividend of 4.0 cents per ordinary share for financial year ended 31 December 2022 • Total dividend of 16.0 cents, including . interim dividends of 12.0 cents.#24Outlook ST Engineering#25Outlook Well positioned for 2023 25| 1. Recovery in 2. 3. 4. 5. Commercial Aerospace Productivity TransCore Portfolio Management Strong Orderbook of aviation • Ride recovery . • Opex/ Revenue ratio improved industry PTF GPM at programme level turned +ve in 4Q22 to 11.7% Smooth Transition Cashflow +ve in 2022 Good contract win momentum Expected to be earnings . accretive from 2nd year Sharpened focus Divested U.S. Marine . Closed AV bus unit Robust order book ($23b @ end Dec 22) ST Engineering#26Group President & CEO's Message 26 | ST Engineering Our Group revenue grew strongly, and our underlying operating performance improved significantly by 55% y-o-y. Notwithstanding the dip in Group Net profit y-o-y, we made good progress in 2022 to deliver against our five-year plan (Investor Day targets for 2022-2026). Firstly, our Commercial Aerospace segment has benefited from the recovery in aviation and will see further improvement, especially in the Asia Pacific region and with the re-opening of China. Secondly, for Urban Solutions & Satcom segment, the transitioning of TransCore is smooth and it has demonstrated good contract win momentum (including the New Jersey tolling contracts). As planned, TransCore is now cash flow positive, and we expect it to be earnings accretive from the second year of acquisition. We see abundant opportunities to derive synergies from this strategic acquisition. Thirdly, for Defence & Public Security segment, the losses relating to the U.S. Marine business have been eliminated post divestment. This was a result of our continued focus to high-grade our business portfolio. Finally, all segments won sizeable new contracts culminating in a robust order book of $23b, which is a leading indicator of future growth. All factors considered, we are well positioned and are optimistic about our future to deliver strong shareholder value." Vincent Chong, Group President & CEO#27Segment Highlights ST Engineering#28Segment Highlights Segment Revenue ST Engineering $m 2H2022 2H2021 Change FY2022 FY2021 Change Commercial 1,587 1,329 +19% 2,991 2,465 +21% Aerospace Urban Solutions & 1,015 663 +53% 1,772 1,191 +49% Satcom Defence & Public 2,163 2,051 +5% 4,272 4,038 +6% Security Group 4,765 4,042 +18% 9,035 7,693 +17% 28 |#29Segment Highlights Segment EBIT ST Engineering $m 2H2022 2H2021 Change FY2022 FY2021 Change Commercial 118 79 +49% 301 182 +65% Aerospace Urban Solutions & 41 15 +176% 29 26 +13% Satcom Defence & Public 191 224 -15% 405 466 -13% Security Group 351 319 +10% 735 674 +9% 29 |#30Segment Highlights Commercial Aerospace 30 | ST Engineering $m FY2022 FY2021 Change Remarks Revenue 2,991 2,465 ▲21% EBIT 301 182 65% Higher revenue attributable to continued but not yet full business recovery Cost savings (including pension cost savings) and strong business recovery more than offset substantial reduction in government support of $150m#31Segment Highlights Commercial Aerospace Sub-segment Highlights Aerospace MRO Revenue, $m Aerostructures & Systems Revenue, $m ST Engineering Aviation Asset Management AUMR1, US$m 1,147 FY2021 Notes: 31 | +21% 1,392 1,392 FY2022 FY2021 +20% 1,671 FY2022 R1 AUM refers to Asset Under Management, including owned, partly owned and managed assets Revenue includes inter-segment and inter-subsegment sales 1,054 +73% 1,821 31.12.21 31.12.22#32ST Engineering Segment Highlights $m FY2022 FY2021 Change Remarks Urban Solutions & Satcom 32 | Revenue 1,772 1,191 ▲ 49% EBIT 29 29 26 TransCore contributed to revenue growth ▲ 13% Higher EBIT despite TransCore transaction and integration expenses of $30m and weakness in Satcom due to chip shortages and higher investment in product development.#33Segment Highlights Urban Solutions & Satcom Sub-segment Highlights Urban Solutions Revenue, $'m +75% Satcom* Revenue, $'m ST Engineering 33 | Note: 802 FY2021 1,406 FY2022 Revenue include inter-segment and inter-subsegment sales -8% 451 415 FY2021 FY2022 *Satcom was impacted by semiconductor chip shortages and we are monitoring the supply chain closely#34Segment Highlights Defence & Public Security 34 | ST Engineering $m FY2022 FY2021 Change Remarks Revenue 4,272 4,038 6% Higher revenue from all sub- segments EBIT 405 466 13% EBIT, excl. govt. support & 428 415 3% energy inflation Excluding government support of $51m in prior year and energy inflation impact of $23m, EBIT would be 3% higher, with business growth and cost savings partially offset by U.S. Marine losses#35Segment Highlights Defence & Public Security Sub-segment Highlights ST Engineering Defence Aerospace Revenue, $m 433 +9% 471 FY2021 FY2022 Digital Systems Land Systems & Cyber Revenue, $m Revenue, $m +10% +3% 1,582 1,456 1,504 1,444 FY2021 FY2022 35 | Note: Revenue include inter-segment and inter-subsegment sales Marine Revenue, $m +4% 813 845 FY2021 FY2022 FY2021 FY2022#36Appendix ST Engineering#37Group Highlights Statement of Financial Position $m Property, plant & equipment 31 Dec 2022 2,076 31 Dec 2021 1,794 Right-of-use assets 582 559 Intangible assets 5,291 1,993 Other non-current assets 888 814 Current assets 6,127 5,356 Total assets 14,964 10,516 Current liabilities 8,005 4,680 Non-current liabilities 4,306 3,168 Total liabilities 12,311 7,847 Share capital and reserves 2,398 2,413 Non-controlling interests 255 255 Total equity and liabilities 14,964 10,516 37 | ST Engineering#38Group Highlights Statement of Cash Flows $m Net cash from /(used in): Operating activities FY2022 FY2021 673 1,114 Investing activities (4,571) (414) Financing activities 3,698 (615) Net change in CCE* (201) 86 CCE at beginning of the year 816 729 Exchange difference (14) 1 CCE at end of the year 602 816 * CCE -Cash & Cash Equivalents 38 | ST Engineering#39Connect with us f in ▸ www.stengg.com ST Engineering