FINANCIAL REVIEW STRONG REVENUE GROWTH AND SIGNIFICANT IMPROVEMENT IN BASE OPERATING PERFORMANCE IN FY2022 In FY2022, the Group’s revenue grew strongly and its base operating performance improved significantly. The Group posted a 17% year-onyear (y-o-y) increase in revenue from $7.7b to $9.0b, contributed by all its business segments. Group earnings before interest and tax (EBIT) improved 9% y-o-y to $735.1m from $673.6m despite a reduction of $203m in COVIDrelated government support. On a base operating performance (BOP) basis excluding government support, energy inflation impact of $36m and TransCore transaction and integration (T&I) expenses of $30m, as well as the positive impact of pension cost savings of $72m, Group EBIT increased by 55% y-o-y to $727m. This result was achieved through cost savings initiatives and business growth. Group Profit attributable to shareholders (Net Profit) was $535m, down 6% y-o-y from $571m. If government support, energy inflation, TransCore T&I expenses, and tax-exempt effect of Jobs Support Scheme, as well as the positive impact of pension cost savings were excluded, Group Net Profit on a BOP basis would be 39% higher y-o-y at $549m. The Group won sizeable new contracts during the year culminating in a robust order book of $23.0b as at the end of 2022, of which $7.2b is expected to be delivered in FY2023. The Board has proposed a final dividend of 4.0 cents per share. Together with the three quarterly interim dividends of 4.0 cents per share paid in 2022, the total dividend for FY2022 will be 16.0 cents per share. FINANCIAL POSITION As at 31 December 2022, the Group’s total assets at $14,964m were higher by $4,448m as compared to the prior year, due largely to the acquisition of TransCore, investments in aviation assets as well as increase in business volume. The average capital employed in FY2022 was $8,769m, an increase of $3,237m from $5,532m in FY2021. The higher average capital employed was attributable mainly to the higher borrowings for the acquisition of TransCore and aviation assets. 14,964 10,516 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Property, Plant & Equipment and Right-of-Use Assets Intangibles and Other Assets Inventories Trade Receivables, Contract Assets, and Advances and Other Receivables Bank Balances and Other Liquid Funds TOTAL ASSETS DEPLOYMENT ($m) 2022 2021 8,769 5,532 0 2,000 4,000 6,000 8,000 10,000 Borrowings Equity Others CAPITAL EMPLOYED ($m) 2022 2021 52 ST ENGINEERING ANNUAL REPORT 2022
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