and management team have demonstrated our commitment to making measured and sound decisions — reinforced by a willingness to take calculated and calibrated risks — to achieve our strategic long-term objectives. At Investor Day 2018, we unveiled our plans to seek growth in selected domains while streamlining our portfolio, and at Investor Day 2021, we refreshed our five-year (2022-2026) mid-term targets to place the Group on a clear path forward in a continuously evolving world, post-COVID. Our aim is that by 2026 (using 2020 as the base year), we will have grown our revenue at a CAGR of two to three times global GDP growth rate, which would translate to a Group revenue of more than $11b by the end of the five-year plan, with net profits expected to grow in tandem. By 2026, we expect annual revenue from our Commercial Aerospace segment to exceed $3.5b, and annual revenue of our Smart City business to more than double to $3.5b. In addition, we expect that the annual revenue from our digital business — comprising the Cloud, AI Analytics and Cyber businesses — to triple to more than $500m. We are confident that our strategy for achieving sustainable growth is on track given our achievements in recent years, especially our resilience against the COVID pandemic. Our results speak for themselves. In 2022, Group revenue was $9.0b while Group EBIT and Group Net Profit were $735m and $535m respectively. Between 2020 (the start of the pandemic) and 2022, Group revenue grew 26%, while our underlying operating performance (excluding government support) at Group EBIT and Group Net Profit levels was three times as strong. This recovery is significant given that more than 40% of our business was directly and negatively impacted by the pandemic. We closed 2022 with total contract value of $13.1b as all business segments maintained good contract win momentum, and a Group order book of $23b, which was 19% higher than the prior year and 50% stronger than when we went into 2020 at the start of COVID-19. Our robust order book, a leading indicator of growth, points to stronger business activities across all our segments. It also reflects a sharper focus on our customers, enabled by a more effective organisation structure put in place two years ago. SIGNIFICANT HIGHLIGHTS IN 2022 Highlights include the completion of the acquisition of TransCore, and major contract wins in all business segments, including international defence business which gained traction in the Middle East. Our Airbus Passenger-to-Freighter (P2F) conversion programme continued to book new orders and improved its gross profit margin as new conversion sites mature. At the same time, we have also divested ourselves of businesses that no longer fit our long-term strategic objectives, such as the U.S. Marine business. These achievements are important milestones towards our 2026 goals. Stronger Smart Mobility business. We completed the acquisition of TransCore in midMarch 2022 and immediately focused on transitioning the business into the Group. We are pleased to report that, as planned, our investment in TransCore turned cash flow positive at the close of 2022, and we expect this acquisition to be earnings accretive to the Group from its second year. TransCore’s steadfast focus on customer excellence ensured continuity in project execution and strong contract wins as demonstrated by the significant contracts it secured in late 2022 to modernise the tolling infrastructure in New Jersey. We plan to grow the TransCore business outside of the U.S., bringing its strengths in design and build as well as operations and maintenance of endto-end tolling solutions, into We closed 2022 with a Group order book of $23b…50% stronger than when we went into 2020 at the start of COVID-19. CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT 05
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