Group and Segment Highlights Deck slide image

Group and Segment Highlights Deck

Group 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
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