Artificial Intelligence

HII Reports Fourth Quarter and Full Year 2022 Results

Published

1 year ago

February 9, 2023

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Revenues were $2.8 billion in the fourth quarter, $10.7 billion in 2022
Diluted earnings per share was $3.07 in the fourth quarter, $14.44 in 2022
Cash from operations was $766 million, and free cash flow¹ was $494 million in 2022
Reaffirms 5-year free cash flow¹ target and provides FY23 guidance

NEWPORT NEWS, Va., Feb. 09, 2023 (GLOBE NEWSWIRE) — HII (NYSE:HII) reported fourth quarter 2022 revenues of $2.8 billion, up 5.0% from the fourth quarter of 2021. Operating income in the fourth quarter of 2022 was $105 million and operating margin was 3.7%, compared to $120 million and 4.5%, respectively, in the fourth quarter of 2021. Diluted earnings per share in the quarter was $3.07, compared to $2.99 in the fourth quarter of 2021.

For the full year, revenues of $10.7 billion increased 12.1% over 2021. Operating income in 2022 was $565 million and operating margin was 5.3%, compared to $513 million and 5.4%, respectively, in 2021. Segment operating income¹ in 2022 was $712 million and segment operating margin¹ was 6.7%, compared to $683 million and 7.2%, respectively, in 2021. Diluted earnings per share for the full year was $14.44, compared to $13.50 in 2021.

Net cash provided by operating activities in 2022 was $766 million and free cash flow¹was $494 million, compared to $760 million and $449 million, respectively, in 2021.

New contract awards in the fourth quarter of 2022 were approximately $3.2 billion, bringing total backlog to approximately $47.1 billion as of December 31, 2022.

“2022 represented another year of steady progress on our ship programs and growth in our Mission Technologies division. We finished the year with strong fourth quarter cash generation, which keeps us on track to meet our 5-year free cash flow commitment of $2.9 billion from 2020-2024,” said Chris Kastner, HII’s president and CEO. “I’m looking forward to 2023, as we are expecting to deliver five ships, and we will continue to grow our Mission Technologies division, capitalizing on the significant $66 billion pipeline.”

2023 Financial Outlook²

Expect FY23 shipbuilding revenue¹ between $8.4 and $8.6 billion; expect shipbuilding operating margin¹ between 7.7% and 8.0%
Expect FY23 Mission Technologies revenue of approximately $2.5 billion, segment operating margin¹ between 2.5% and 3.0%; and Mission Technologies EBITDA margin¹ between 8.0% and 8.5%
Expect FY23 free cash flow¹ between $400 and $450 million³
Continue to expect cumulative FY20-FY24 free cash flow¹ of approximately $2.9 billion³

¹ Non-GAAP measures. See Exhibit B for definitions and reconciliations. In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward–looking GAAP and non–GAAP measures are not provided because we are unable to provide such reconciliations without unreasonable effort due to the uncertainty and inherent difficulty of predicting the future occurrence and financial impact of certain elements of GAAP and non-GAAP measures.
² The financial outlook, expectations and other forward-looking statements provided by the company for 2023 and beyond reflect the company’s judgment based on the information available at the time of this release.
³ Outlook is based on current tax law and assumes the provisions requiring capitalization of R&D expenditures for tax purposes are not deferred or repealed.

Results of Operations

	Three Months Ended												Year Ended
	December 31												December 31
($ in millions, except per share amounts)		2022			2021		$ Change			% Change				2022			2021		$ Change		% Change
Sales and service revenues	$	2,812		$	2,677		$	135			5.0	%	$	10,676		$	9,524		$	1,152		12.1	%
Operating income		105			120			(15	)		(12.5)	%		565			513			52		10.1	%
Operating margin %		*3.7*	%		4.5	%				(75) bps				*5.3*	%		5.4	%			(9) bps
Segment operating income¹		145			160			(15	)		(9.4	)%		712			683			29		4.2	%
Segment operating margin %¹		*5.2*	%		6.0	%				(82) bps				*6.7*	%		7.2	%			(50) bps
Net earnings		123			120			3			2.5	%		579			544			35		6.4	%
Diluted earnings per share	$	3.07		$	2.99		$	0.08			2.7	%	$	14.44		$	13.50		$	0.94		7.0	%
¹Non-GAAP measures that exclude non-segment factors affecting operating income. See Exhibit B for definitions and reconciliations.

Segment Operating Results

Ingalls Shipbuilding

	Three Months Ended											Year Ended
	December 31											December 31
($ in millions)		2022			2021		$ Change		% Change				2022			2021		$ Change		% Change
Revenues	$	658		$	581		$	77		13.3	%	$	2,570		$	2,528		$	42		1.7	%
Segment operating income¹		50			48			2		4.2	%		292			281			11		3.9	%
Segment operating margin %¹		*7.6*	%		8.3	%				(66) bps			*11.4*	%		11.1	%				25 bps
¹Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Ingalls Shipbuilding revenues for the fourth quarter of 2022 were $658 million, an increase of $77 million, or 13.3%, from the same period in 2021, primarily driven by higher revenues in surface combatants and amphibious assault ships, partially offset by lower revenues in the Legend-class National Security Cutter (NSC) program. Revenues on surface combatants increased due to higher volumes on Ted Stevens (DDG 128), Sam Nunn (DDG 133), Telesforo Trinidad (DDG 139) and John F. Lehman (DDG 137), partially offset by lower volume on USS Frank E. Petersen Jr. (DDG 121). Revenues on amphibious assault ships increased due to higher volume on Fallujah (LHA 9). Revenues on the NSC program decreased due to lower volumes on Friedman (NSC 11) and Calhoun (NSC 10).

Ingalls Shipbuilding segment operating income¹ for the fourth quarter of 2022 was $50 million, an increase of $2 million from the same period in 2021. Segment operating margin¹in the fourth quarter of 2022 was 7.6%, compared to 8.3% in the same period last year.

For the full year, Ingalls Shipbuilding revenues were $2.6 billion, an increase of $42 million, or 1.7%, compared to 2021, primarily driven by higher revenues in amphibious assault ships and surface combatants, partially offset by lower revenues in the NSC program. Revenues on amphibious assault ships increased due to higher volume on Fallujah (LHA 9) and Pittsburgh (LPD 31), partially offset by lower volume on USS Fort Lauderdale (LPD 28) following its delivery. Revenues on surface combatants increased due to higher volume on Thad Cochran (DDG 135), Sam Nunn (DDG 133), and Telesforo Trinidad (DDG 139), partially offset by lower volume on Jeremiah Denton (DDG 129) and USS Frank E. Petersen Jr. (DDG 121). Revenues on the NSC program decreased due to lower volumes on Friedman (NSC 11) and Calhoun (NSC 10).

For the full year, Ingalls Shipbuilding segment operating income¹ was $292 million, an increase of $11 million, or 3.9%, from 2021. Full year 2022 segment operating margin¹ was 11.4%, compared to 11.1% in 2021. These increases were primarily due to favorable changes in contract estimates from facilities capital and price adjustment clauses, as well as higher risk retirement on Harrisburg (LPD 30) and USS Fort Lauderdale (LPD 28), partially offset by receipt of a contract incentive on USS Jack H. Lucas (DDG 125) in 2021.

Key Ingalls Shipbuilding milestones for the quarter:

Awarded $2.4 billion contract to build amphibious assault ship Fallujah (LHA 9) and began fabrication
Successfully completed builder’s trials for guided-missile destroyer Jack H. Lucas (DDG 125)
Began fabrication of guided-missile destroyer Sam Nunn (DDG 133)
Successfully completed acceptance trials and delivered guided-missile destroyer Lenah Sutcliffe Higbee (DDG 123) to the U.S. Navy

¹Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Newport News Shipbuilding

	Three Months Ended												Year Ended
	December 31												December 31
($ in millions)		2022			2021		$ Change			% Change				2022			2021		$ Change		% Change
Revenues	$	1,584		$	1,539		$	45			2.9	%	$	5,852		$	5,663		$	189		3.3	%
Segment operating income¹		80			95			(15	)		(15.8	)%		357			352			5		1.4	%
Segment operating margin %¹		*5.1*	%		6.2	%				(112) bps				*6.1*	%		6.2	%			(12) bps
¹Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Newport News Shipbuilding revenues for the fourth quarter of 2022 were $1.6 billion, an increase of $45 million, or 2.9%, from the same period in 2021, primarily driven by higher revenues in aircraft carriers and submarines, partially offset by lower revenues in naval nuclear support services. Aircraft carrier revenues increased due to higher volume on the refueling and complex overhaul (RCOH) of USS John C. Stennis (CVN 74), as well as the construction of Doris Miller (CVN 81), partially offset by lower volume on the RCOH of USS George Washington (CVN 73). Submarine revenues increased due to higher volumes on the Columbia-class submarine program and Block V boats of the Virginia-class submarine (VCS) program, partially offset by lower volumes on Block IV boats of the VCS program. Naval nuclear support service revenues decreased primarily as a result of lower volumes in aircraft carrier fleet support services.

Newport News Shipbuilding segment operating income¹ for the fourth quarter of 2022 was $80 million, a decrease of $15 million from the same period in 2021. Segment operating margin¹ in the fourth quarter of 2022 was 5.1%, compared to 6.2% in the same period last year. The decreases were primarily due to lower risk retirement on the VCS program and the construction of John F. Kennedy (CVN 79) compared to the prior year period.

For the full year, Newport News Shipbuilding revenues were $5.9 billion, an increase of $189 million, or 3.3%, compared to 2021, primarily driven by higher revenues in aircraft carriers and submarines, partially offset by lower revenues in naval nuclear support services. Aircraft carrier revenues increased primarily as a result of higher volume on the RCOH of USS John C. Stennis (CVN 74) and the construction of Doris Miller (CVN 81) and Enterprise (CVN 80), partially offset by lower volume on the RCOH of USS George Washington (CVN 73) and USS Gerald R. Ford (CVN 78). Submarine revenues increased due to higher volumes on the Columbia-class submarine program and Block V boats of the VCS program, partially offset by lower volumes on Block IV boats of the VCS program. Naval nuclear support service revenues decreased primarily as a result of lower volumes in facility maintenance services, partially offset by higher volumes in submarine fleet support services.

For the full year, Newport News Shipbuilding segment operating income¹ was $357 million, an increase of $5 million, or 1.4%, from 2021. The increase was primarily due to favorable changes in contract estimates from facilities capital and price adjustment clauses, as well as contract incentives on the Columbia-class submarine program, partially offset by lower risk retirement on the VCS program and the RCOH of USS George Washington (CVN 73). Full year 2022 segment operating margin¹ was 6.1%, compared to 6.2% in 2021.

Key Newport News Shipbuilding milestones for the quarter:

Authenticated the keel of Virginia-class attack submarine Arkansas (SSN 800)
Reached approximate 98% completion of the RCOH of USS George Washington (CVN 73)
Reached approximate 88% completion of John F. Kennedy (CVN 79)

¹Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Mission Technologies

	Three Months Ended												Year Ended
	December 31												December 31
($ in millions)		2022			2021		$ Change			% Change				2022			2021		$ Change		% Change
Revenues	$	602		$	586		$	16			2.7	%	$	2,387		$	1,476		$	911		61.7	%
Segment operating income¹		15			17			(2	)		(11.8	)%		63			50			13		26.0	%
Segment operating margin %¹		*2.5*	%		2.9	%				(41) bps				*2.6*	%		3.4	%			(75) bps
¹Non-GAAP measures. See Exhibit B for definitions and reconciliations.

Mission Technologies revenues for the fourth quarter of 2022 were $602 million, an increase of $16 million from the same period in 2021. The increase was primarily due to growth in mission based solutions, largely attributable to Alion Science and Technology (Alion).

Mission Technologies segment operating income¹ for the fourth quarter of 2022 was $15 million, compared to $17 million in the fourth quarter of 2021. Segment operating margin¹ in the fourth quarter of 2022 was 2.5%, compared to 2.9% in the same period last year. The decreases in segment operating income¹ and segment operating margin¹ were primarily driven by a non-cash valuation adjustment of approximately $10 million related to an equity method investment that is involved in a pending transaction.

Fourth quarter 2022 results included approximately $24 million of amortization related to the Alion acquisition, compared to approximately $25 million in the same period last year. Mission Technologies EBITDA margin¹in the fourth quarter of 2022 was 6.6%.

For the full year, Mission Technologies revenues were $2.4 billion, an increase of $911 million, or 61.7%, compared to 2021, primarily due to higher volumes in mission based solutions attributable to the acquisition of Alion in the third quarter of 2021.

For the full year, Mission Technologies segment operating income¹ was $63 million, an increase of $13 million, or 26%, from 2021. The increase in segment operating income¹ was primarily related to the acquisition of Alion in the third quarter of 2022 and higher equity income related to a minority interest in a joint venture, partially offset by higher amortization of purchased intangible assets in 2022 due to the Alion acquisition.

Full year 2022 results included approximately $96 million of amortization of Alion related purchased intangible assets, compared to approximately $33 million in 2021. Mission Technologies EBITDA margin¹for full year 2022 was 8.2%.

Key Mission Technologies milestones for the quarter:

Awarded U.S. Air Force contract to provide technical analysis and research supporting artificial intelligence, machine learning and cyber modernization priorities
Awarded U.S. Air Force electronic warfare research and analysis task order
Unveiled REMUS 620 unmanned underwater vehicle
Completed integration of Alion

¹Non-GAAP measures. See Exhibit B for definitions and reconciliations.

2023 Financial Outlook¹

Expect FY23 shipbuilding revenue² between $8.4 and $8.6 billion; and shipbuilding operating margin² between 7.7% and 8.0%
Expect FY23 Mission Technologies revenue of approximately $2.5 billion, segment operating margin² between 2.5% and 3.0%; and Mission Technologies EBITDA margin² between 8.0% and 8.5%
Expect FY23 free cash flow² between $400 and $450 million³
Continue to expect cumulative FY20-FY24 free cash flow² of approximately $2.9 billion³

	FY23 Outlook
Shipbuilding Revenue²	$8.4B – $8.6B
Shipbuilding Operating Margin²	7.7% – 8.0%
Mission Technologies Revenue	~$2.5B
Mission Technologies Segment Operating Margin²	2.5% – 3.0%
Mission Technologies EBITDA Margin²	8.0% – 8.5%

Operating FAS/CAS Adjustment	($68M)
Non-current State Income Tax Expense⁴	~$0M
Interest Expense	($105M)
Non-operating Retirement Benefit	$149M
Effective Tax Rate	~21%

Depreciation & Amortization	~$365M
Capital Expenditures	~3.0% of Sales
Free Cash Flow²^{, 3}	$400M – $450M

¹The financial outlook, expectations and other forward looking statements provided by the company for 2023 and beyond reflect the company’s judgment based on the information available at the time of this release.
²Non-GAAP measures. See Exhibit B for definitions. In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward–looking GAAP and non–GAAP measures are not provided because we are unable to provide such reconciliations without unreasonable effort due to the uncertainty and inherent difficulty of predicting the future occurrence and financial impact of certain elements of GAAP and non-GAAP measures.
³Outlook is based on current tax law and assumes the provisions requiring capitalization of R&D expenditures for tax purposes are not deferred or repealed.
⁴Outlook is based on current tax law. Repeal or deferral of provisions requiring capitalization of R&D expenditures would result in elevated non-current state income tax expense.

About Huntington Ingalls Industries

HII is a global, all-domain defense provider. HII’s mission is to deliver the world’s most powerful ships and all-domain solutions in service of the nation, creating the advantage for our customers to protect peace and freedom around the world.

As the nation’s largest military shipbuilder, and with a more than 135-year history of advancing U.S. national security, HII delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. Headquartered in Virginia, HII’s workforce is 43,000 strong.
For more information, please visit www.HII.com.

Conference Call Information

HII will webcast its earnings conference call at 9 a.m. Eastern time today. A live audio broadcast of the conference call and supplemental presentation will be available on the investor relations page of the company’s website: www.HII.com. A telephone replay of the conference call will be available from noon today through Thursday, February 16th by calling (866) 813-9403 or (929) 458-6194 and using access code 090168.

Cautionary Statement Regarding Forward-Looking Statements

Statements in this release, other than statements of historical fact, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can generally identify forward-looking statements by words such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” and similar words or phrases or the negative of these words or phrases. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable when made, we cannot guarantee future results, levels of activity, performance, or achievements. There are a number of important factors that could cause our actual results to differ materially from the results anticipated by our forward-looking statements, which include, but are not limited to: changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans); our ability to estimate our future contract costs, including cost increases due to inflation, and perform our contracts effectively; changes in procurement processes and government regulations and our ability to comply with such requirements; our ability to deliver our products and services at an affordable life cycle cost and compete within our markets; natural and environmental disasters and political instability; our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures and strategic acquisitions; adverse economic conditions in the United States and globally; health epidemics, pandemics and similar outbreaks, including the COVID-19 pandemic, and the impacts of vaccination mandates on our workforce; our ability to attract, retain and train a qualified workforce; disruptions impacting global supply, including those attributable to the COVID-19 pandemic and those resulting from the ongoing conflict between Russia and Ukraine; changes in key estimates and assumptions regarding our pension and retiree health care costs; security threats, including cyber security threats, and related disruptions; and other risk factors discussed in our filings with the U.S. Securities and Exchange Commission. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make. This release also contains non-GAAP financial measures and includes a GAAP reconciliation of these financial measures. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures.

Exhibit A: Financial Statements

HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended						Year Ended
	December 31						December 31
(in millions, except per share amounts)		2022			2021			2022			2021
Sales and service revenues
Product sales	$	1,956		$	1,815		$	7,283		$	7,000
Service revenues		856			862			3,393			2,524
Sales and service revenues		2,812			2,677			10,676			9,524
Cost of sales and service revenues
Cost of product sales		1,714			1,556			6,225			5,958
Cost of service revenues		759			748			3,011			2,198
Income from operating investments, net		1			10			48			41
Other income and gains, net		1			(1	)		1			2
General and administrative expenses		236			262			924			898
Operating income		105			120			565			513
Other income (expense)
Interest expense		(23	)		(26	)		(102	)		(89	)
Non-operating retirement benefit		67			46			276			181
Other, net		10			7			(20	)		17
Earnings before income taxes		159			147			719			622
Federal and foreign income tax expense (benefit)		36			27			140			78
Net earnings	$	123		$	120		$	579		$	544

Basic earnings per share	$	3.07		$	2.99		$	14.44		$	13.50
Weighted-average common shares outstanding		40.1			40.1			40.1			40.3

Diluted earnings per share	$	3.07		$	2.99		$	14.44		$	13.50
Weighted-average diluted shares outstanding		40.1			40.1			40.1			40.3

Dividends declared per share	$	1.24		$	1.18		$	4.78		$	4.60

Net earnings from above	$	123		$	120		$	579		$	544
Other comprehensive income (loss)
Change in unamortized benefit plan costs		497			736			436			838
Other		2			(1	)		—			—
Tax benefit (expense) for items of other comprehensive income		(128	)		(188	)		(112	)		(214	)
Other comprehensive income, net of tax		371			547			324			624
Comprehensive income	$	494		$	667		$	903		$	1,168

HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

($ in millions)	December 31, 2022			December 31, 2021
*Assets*
Current Assets
Cash and cash equivalents	$	467		$	627
Accounts receivable, net of allowance for doubtful accounts of $2 million as of 2022 and $9 million as of 2021		636			433
Contract assets		1,240			1,310
Inventoried costs		183			161
Income taxes receivable		170			209
Prepaid expenses and other current assets		50			50
Total current assets		2,746			2,790
Property, Plant, and Equipment, net of accumulated depreciation of $2,319 million as of 2022 and $2,149 million as of 2021		3,198			3,107
Other Assets
Operating lease assets		282			241
Goodwill		2,618			2,628
Other intangible assets, net of accumulated amortization of $881 million as of 2022 and $741 million as of 2021		1,019			1,159
Pension plan assets		600			281
Miscellaneous other assets		394			421
Total other assets		4,913			4,730
Total assets	$	10,857		$	10,627
*Liabilities and Stockholders’ Equity*
Current Liabilities
Trade accounts payable		642			603
Accrued employees’ compensation		345			361
Current portion of long-term debt		399			—
Current portion of postretirement plan liabilities		134			137
Current portion of workers’ compensation liabilities		229			252
Contract liabilities		766			651
Other current liabilities		380			423
Total current liabilities		2,895			2,427
Long-term debt		2,506			3,298
Pension plan liabilities		214			351
Other postretirement plan liabilities		260			368
Workers’ compensation liabilities		463			506
Long-term operating lease liabilities		246			194
Deferred tax liabilities		418			313
Other long-term liabilities		366			362
Total liabilities		7,368			7,819
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.01 par value; 150 million shares authorized; 53.5 million shares issued and 39.9 million shares outstanding as of December 31, 2022, and 53.4 million shares issued and 40.0 million shares outstanding as of December 31, 2021		1			1
Additional paid-in capital		2,022			1,998
Retained earnings		4,276			3,891
Treasury stock		(2,211	)		(2,159	)
Accumulated other comprehensive loss		(599	)		(923	)
Total stockholders’ equity		3,489			2,808
Total liabilities and stockholders’ equity	$	10,857		$	10,627

HUNTINGTON INGALLS INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Year Ended December 31
($ in millions)		2022			2021
Operating Activities
Net earnings	$	579		$	544
Adjustments to reconcile to net cash provided by operating activities
Depreciation		218			207
Amortization of purchased intangibles		140			86
Amortization of debt issuance costs		8			8
Provision for doubtful accounts		(7	)		7
Stock-based compensation		36			33
Deferred income taxes		2			98
Loss (gain) on investments in marketable securities		25			(19	)
Change in
Accounts receivable		(196	)		58
Contract assets		70			(126	)
Inventoried costs		(22	)		(25	)
Prepaid expenses and other assets		20			(88	)
Accounts payable and accruals		6			45
Retiree benefits		(127	)		(78	)
Other non-cash transactions, net		14			10
Net cash provided by operating activities		766			760
Investing Activities
Capital expenditures
Capital expenditure additions		(284	)		(331	)
Grant proceeds for capital expenditures		12			20
Acquisitions of businesses, net of cash received		—			(1,643	)
Investment in affiliates		(5	)		(22	)
Proceeds from disposition of business		—			20
Other investing activities, net		9			2
Net cash used in investing activities		(268	)		(1,954	)
Financing Activities
Proceeds from issuance of long-term debt		—			1,650
Repayment of long-term debt		(400	)		(25	)
Proceeds from revolving credit facility borrowings		24			—
Repayment of revolving credit facility borrowings		(24	)		—
Debt issuance costs		—			(22	)
Dividends paid		(192	)		(186	)
Repurchases of common stock		(52	)		(101	)
Employee taxes on certain share-based payment arrangements		(14	)		(7	)
Net cash (used in) provided by financing activities		(658	)		1,309
Change in cash and cash equivalents		(160	)		115
Cash and cash equivalents, beginning of period		627			512
Cash and cash equivalents, end of period	$	467		$	627
Supplemental Cash Flow Disclosure
Cash paid for income taxes (net of refunds)	$	127		$	33
Cash paid for interest	$	100		$	76
Non-Cash Investing and Financing Activities
Capital expenditures accrued in accounts payable	$	12		$	6

Exhibit B: Non-GAAP Measures Definitions & Reconciliations

We make reference to “segment operating income,” “segment operating margin,” “shipbuilding revenue,” “shipbuilding operating margin,” “Mission Technologies EBITDA margin” and “free cash flow.”

We internally manage our operations by reference to segment operating income and segment operating margin, which are not recognized measures under GAAP. When analyzing our operating performance, investors should use segment operating income and segment operating margin in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP. They are measures that we use to evaluate our core operating performance. We believe that segment operating income and segment operating margin reflect additional ways of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. We believe these measures are used by investors and are a useful indicator to measure our performance. Because not all companies use identical calculations, our presentation of segment operating income and segment operating margin may not be comparable to similarly titled measures of other companies.

Shipbuilding revenue, shipbuilding operating margin and Mission Technologies EBITDA margin are not measures recognized under GAAP. They are measures that we use to evaluate our core operating performance. When analyzing our operating performance, investors should use shipbuilding revenue, shipbuilding operating margin and Mission Technologies EBITDA margin in addition to, and not as alternatives for, operating income and operating margin or any other performance measure presented in accordance with GAAP. We believe that shipbuilding revenue, shipbuilding operating margin and Mission Technologies EBITDA margin reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. We believe these measures are used by investors and are a useful indicator to measure our performance.

Free cash flow is not a measure recognized under GAAP. Free cash flow has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for net earnings as a measure of our performance or net cash provided or used by operating activities as a measure of our liquidity. We believe free cash flow is an important measure for our investors because it provides them insight into our current and period-to-period performance and our ability to generate cash from continuing operations. We also use free cash flow as a key operating metric in assessing the performance of our business and as a key performance measure in evaluating management performance and determining incentive compensation. Free cash flow may not be comparable to similarly titled measures of other companies.

Reconciliations of forward-looking GAAP and non-GAAP measures are not provided because we are unable to provide such reconciliations without unreasonable effort due to the uncertainty and inherent difficulty of predicting the future occurrence and financial impact of certain elements of GAAP and non-GAAP measures. For the same reasons, we are unable to address the significance of the unavailable information, which could be material to future results.

Segment operating income is defined as operating income for the relevant segment(s) before the Operating FAS/CAS Adjustment and non-current state income taxes.

Segment operating margin is defined as segment operating income as a percentage of sales and service revenues.

Shipbuilding revenue is defined as the combined sales and service revenues from our Newport News Shipbuilding segment and Ingalls Shipbuilding segment.

Shipbuilding operating margin is defined as the combined segment operating income of our Newport News Shipbuilding segment and Ingalls Shipbuilding segment as a percentage of shipbuilding revenue.

Mission Technologies EBITDA is defined as Mission Technologies segment operating income before interest expense, income taxes, depreciation, and amortization

Mission Technologies EBITDA margin is defined as Mission Technologies EBITDA as a percentage of Mission Technologies revenues.

Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures net of related grant proceeds.

Operating FAS/CAS Adjustment is defined as the difference between the service cost component of our pension and other postretirement expense determined in accordance with GAAP (FAS) and our pension and other postretirement expense under U.S. Cost Accounting Standards (CAS).

Non-current state income taxes are defined as deferred state income taxes, which reflect the change in deferred state tax assets and liabilities and the tax expense or benefit associated with changes in state uncertain tax positions in the relevant period. These amounts are recorded within operating income. Current period state income tax expense is charged to contract costs and included in cost of sales and service revenues in segment operating income.

We present financial measures adjusted for the Operating FAS/CAS Adjustment and non-current state income taxes to reflect the company’s performance based upon the pension costs and state tax expense charged to our contracts under CAS. We use these adjusted measures as internal measures of operating performance and for performance-based compensation decisions.

Reconciliations of Segment Operating Income and Segment Operating Margin

	Three Months Ended						Year Ended
	December 31						December 31
($ in millions)		2022			2021			2022			2021
Ingalls revenues	$	658		$	581		$	2,570		$	2,528
Newport News revenues		1,584			1,539			5,852			5,663
Mission Technologies revenues		602			586			2,387			1,476
Intersegment eliminations		(32	)		(29	)		(133	)		(143	)
Sales and Service Revenues		2,812			2,677			10,676			9,524

Operating Income		105			120			565			513
Operating FAS/CAS Adjustment		37			39			145			157
Non-current state income taxes		3			1			2			13
Segment Operating Income		145			160			712			683
As a percentage of sales and service revenues		5.2	%		6.0	%		6.7	%		7.2	%
Ingalls segment operating income		50			48			292			281
As a percentage of Ingalls revenues		7.6	%		8.3	%		11.4	%		11.1	%
Newport News segment operating income		80			95			357			352
As a percentage of Newport News revenues		5.1	%		6.2	%		6.1	%		6.2	%
Mission Technologies operating income		15			17			63			50
As a percentage of Mission Technologies revenues		2.5	%		2.9	%		2.6	%		3.4	%

Reconciliation of Free Cash Flow

	Three Months Ended						Year Ended
	December 31						December 31
($ in millions)		2022			2021			2022			2021
Net cash provided by operating activities	$	601		$	271		$	766		$	760
Less capital expenditures:
Capital expenditure additions		(105	)		(115	)		(284	)		(331	)
Grant proceeds for capital expenditures		12			9			12			20
Free cash flow	$	508		$	165		$	494		$	449

Reconciliation of Mission Technologies EBITDA and EBITDA Margin

	Three Months Ended						Year Ended
	December 31						December 31
($ in millions)		2022			2021			2022			2021
Mission Technologies sales and service revenues	$	602		$	586		$	2,387		$	1,476

Mission Technologies segment operating income	$	15		$	17		$	63		$	50
Mission Technologies depreciation expense		2			2			10			6
Mission Technologies amortization expense		30			34			120			66
Mission Technologies state tax expense		(7	)		—			2			5
Mission Technologies EBITDA	$	40		$	53		$	195		$	127
Mission Technologies EBITDA margin		6.6	%		9.0	%		8.2	%		8.6	%

Christie Thomas (Investors)
[email protected]
757-380-2104

Related Topics:AI Artificial Intelligence Machine learning

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Artificial Intelligence

More than $9 Million Awarded to High School Scientists and Engineers at the Regeneron International Science and Engineering Fair 2024

Published

31 mins ago

May 17, 2024

CISION (PR Newswire)

more-than-$9-million-awarded-to-high-school-scientists-and-engineers-at-the-regeneron-international-science-and-engineering-fair-2024

Grace Sun, 16, receives $75,000 Top Award for a new kind of organic electrochemical transistor at the world’s largest pre-college science, technology, engineering and math (STEM) competition.
TARRYTOWN, N.Y. and WASHINGTON, May 17, 2024 /PRNewswire/ — Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) and Society for Science (the Society) announced that Grace Sun, 16, of Lexington, Kentucky, won the $75,000 top award, the George D. Yancopoulos Innovator Award, named in honor of the pioneering drug researcher and Regeneron co-Founder, Board co-Chair, President and Chief Scientific Officer, in the 2024 Regeneron International Science and Engineering Fair (Regeneron ISEF), the world’s largest pre-college science and engineering competition. Other top prizes went to projects in second-order cone programming, microplastics filtration and multi-sensory therapy for dementia.

The top winners were honored during two award ceremonies: the Special Awards on May 16 and the Grand Awards Ceremony on the morning of May 17. In total, over $9 million USD was awarded to the finalists based on their projects’ creativity, innovation and depth of scientific inquiry. The competition featured nearly 2,000 young scientists representing 49 U.S. states and nearly 70 countries, regions and territories across the world.
Grace Sun, 16, of Lexington, Kentucky, won first place and received the $75,000 George D. Yancopoulos Innovator Award for her research on building a better organic electrochemical transistor that she hopes will be used to develop new electronic devices that could help detect and treat serious illnesses like diabetes, epilepsy and organ failure. To overcome the problems that have previously prevented such devices from working effectively inside the body, Grace developed a new way of chemically treating their organic components, which greatly improved their laboratory performance.
Michelle Wei, 17, of San Jose, California, received one of two Regeneron Young Scientist Awards of $50,000 for her research to improve the speed and efficiency of a type of software that is useful in many fields such as machine learning, transportation and financial systems. Michelle’s new approach involved determining a quick approximate solution to the second-order cone programming problem, then splitting the initial cone into smaller cones, which enabled her new algorithm to greatly outperform previous approaches.
Krish Pai, 17, of Del Mar, California, received the second Regeneron Young Scientist Award of $50,000 for his machine-learning research to identify microbial genetic sequences that can be modified to biodegrade plastic. His new software, called Microby, scans databases of microorganisms and determines which ones can be changed genetically to biodegrade plastics. In tests, he identified two microorganisms that can be genetically modified to degrade plastic at a cost he believes would be ten times less than traditional recycling.
“Congratulations to the Regeneron International Science and Engineering Fair 2024 winners,” said Maya Ajmera, President and CEO, Society for Science and Executive Publisher, Science News. “I’m truly inspired by the ingenuity and determination shown by these remarkable students. Coming from around the world with diverse backgrounds and academic disciplines, these students have shown that it is possible to come together in unity to tackle some of the toughest challenges facing our world today, and I could not be prouder.”
Regeneron ISEF provides a global stage for the world’s best and brightest young scientists and engineers. Through this competition, Regeneron and the Society are fostering the next generation of STEM leaders who are pioneering solutions to improve our world. Since 2020, Regeneron has provided STEM experiences to approximately 2.4 million students, on track to meet its goal of 2.5 million by 2025.
“The talent, intelligence and potential of this year’s Regeneron ISEF finalists is truly inspiring, and I congratulate each on their remarkable achievements,” said George D. Yancopoulos, M.D., Ph.D., co-Founder, Board co-Chair, President and Chief Scientific Officer of Regeneron. “Science competitions like ISEF were pivotal in shaping my own career and fueling my passion to fight back against disease. I look forward to seeing these students continue to push the boundaries of science and technology to create positive and sustainable change for all humanity.”
Other top honors from the competition include:
Justin Huang and Victoria Ou, both 17, of Woodlands, Texas, received the Gordon E. Moore Award for Positive Outcomes for Future Generations of $50,000 for their new prototype filtration system that uses ultrasonic waves to remove microscopic plastic particles from water. In lab tests, the acoustic force from the high-frequency sound waves removed between 84% and 94% of the suspended microplastic particles in a single pass. The students are now working to scale up and fine-tune their experimental system.
Ingrid Wai Hin Chan, 17, of Hong Kong, China received the Craig R. Barrett Award for Innovation of $10,000 for her research on using a multi-sensory therapy for dementia patients. Her mixed therapy app would allow patients to practice physical and cognitive skills through a personalized, immersive environment using virtual reality headsets. Ingrid conducted an eight-week study with six people living with dementia and found that the cognitive function of patients who used her prototype improved in several areas. She believes her app could serve as a viable option for dementia patients with limited access to in-person professional therapy.
Tanishka Balaji Aglave, 15, of Valrico, Florida, received the H. Robert Horvitz Prize for Fundamental Research of $10,000 for her investigation into a natural alternative treatment against citrus greening, a disease that threatens citrus farming in many parts of the world and is currently only treated with antibiotics. Tanishka injected the trunks of infected trees with an extract from the curry leaf tree, and found through tests that this potential method could effectively and sustainably manage citrus greening disease.
Maddux Alexander Springer, 18, of Honolulu, Hawaii, received the Peggy Scripps Award for Science Communication of $10,000 for his research into fibropapillomatosis (FP), a disease that is the primary cause of death in green sea turtles. Some turtles he studied in Kaneohe Bay, Hawaii, were stricken with a disease that causes internal and external tumors that inhibit their everyday lives. After analyzing the turtles’ diet of green algae, Maddux concluded that this disease, wastewater, invasive algae and the amino acid arginine all pose a grave risk to these endangered sea creatures.
Ria Kamat, 17, of Hackensack, New Jersey; Anna Oliva, 17, of Houston, TX; and Shuhan Luo, 18, of Worcester, MA, received the Dudley R. Herschbach SIYSS Award, which provides finalists an all-expense paid trip to attend the Stockholm International Youth Science Seminar during Nobel Week in Stockholm, Sweden.
Jack Shannon, 18, of Clane, Kildare, Ireland, and Nikhil Vemuri, 17, of Cary, North Carolina, received the EU Contest for Young Scientists Award. Their projects will represent Regeneron ISEF at the EU Contest for Young Scientists to be held this September in Katowice, Poland.
For more information about the top winners and access to visual assets visit: https://www.societyforscience.org/isef-2024-media-kit.
The full list of Special Award ISEF 2024 Finalists can be found at https://www.societyforscience.org/press-release/regeneron-isef-2024-special-awards-winners.
In addition to the Top Award winners, more than 450 finalists received awards and prizes for their innovative research, including “First Award” winners, who each received a $5,000 prize.
The following lists the First Award winners for each of the 22 categories, from which the Top Awards were chosen:
Animal Sciences, sponsored by Society for ScienceMaddux Alexander Springer, Honolulu, Hawaii
Behavioral and Social Sciences, sponsored by Society for ScienceAndrew Y. Liang, San Jose, California
Biochemistry, sponsored by RegeneronAmy Hong Xiao, Garden City, New York
Biomedical and Health Sciences, sponsored by RegeneronRia Kamat, Hackensack, New Jersey; Kevin Xuan Lei, Shanghai, China
Biomedical Engineering, sponsored by Alfred E. Mann CharitiesAyush Garg, Dublin, California; Divij Motwani, Palo Alto, California; Akash Ashish Pai, Portland, Oregon
Cellular and Molecular Biology, sponsored by RegeneronLara and Maya Sarah Hammoud, Beverly Hills, Michigan
Chemistry, sponsored by Society for ScienceAkilan Sankaran, Albuquerque, New Mexico; Arjun Suresh Malpani and Siddharth Daniel D’costa, Portland, Oregon
Computational Biology and Bioinformatics, sponsored by RegeneronKun-Hyung Roh, Bronx, New York
Earth and Environmental Sciences, sponsored by Google.orgNikhil Vemuri, Durham, North Carolina; Justin Yizhou Huang and Victoria Ou, The Woodlands, Texas
Embedded Systems, sponsored by HPChloe Rae and Sophie Rose Filion, Welland, Ontario, Canada
Energy: Sustainable Materials and Design, sponsored by Siemens EnergyAlia Wahban, Hamilton, Ontario, Canada
Engineering Technology: Statics and Dynamics, sponsored by Howmet Aerospace FoundationChiyo Nakatsuji, Bunkyoku, Tokyo, Japan; Kevin Shen, Olympia, Washington
Environmental Engineering, sponsored by JacobsKrish Pai, San Diego, California; Jack Shannon, Clane, Kildare, Ireland
Materials Science, sponsored by Howmet Aerospace FoundationGrace Sun, Lexington, Kentucky
Mathematics, sponsored by Akamai FoundationAnna Oliva, Houston, Texas
Microbiology, sponsored by Schattner FoundationMatthew Chang, Irvine, California
Physics and Astronomy, sponsored by Richard F. Caris Charitable Trust IIHarini Thiagarajan and Vishal Ranganath Yalla, Bothell, Washington; Shuhan Luo, Worcester, Massachusetts
Plant Sciences, sponsored by Society for SciencePauline Estrada, Fresno, California; Tanishka Balaji Aglave, Dover, Florida
Robotics and Intelligent Machines, sponsored by RegeneronMichal Lajciak, Dubnica nad Vahom, Trenciansky kraj, Slovakia; Anthony Efthimiadis, Oakville, Ontario, Canada
Systems Software, sponsored by MicrosoftMichelle Wei, San Jose, California
Technology Enhances the Arts, sponsored by Society for ScienceAnant Khandelwal, Sritan Motati and Siddhant Sood, Alexandria, Virginia
Translational Medical Science, sponsored by RegeneronZheng-Chi Lee, West Lafayette, Indiana; Ingrid Wai Hin Chan, Hong Kong, China
The full list of all award-winning ISEF 2024 finalists is available here: https://www.societyforscience.org/press-release/regeneron-isef-2024-full-awards.
View all the finalists’ research here: https://projectboard.world/isef.
About the Regeneron International Science and Engineering FairThe Regeneron International Science and Engineering Fair (Regeneron ISEF), a program of Society for Science for over 70 years, is the world’s largest global science competition for high school students. Through a global network of local, regional and national science fairs, millions of students are encouraged to explore their passion for scientific inquiry. Each spring, a group of these students is selected as finalists and offered the opportunity to compete for approximately U.S. $9 million in awards and scholarships.
In 2019, Regeneron became the title sponsor of ISEF to help reward and celebrate the best and brightest young minds globally and encourage them to pursue careers in STEM to positively impact the world. Regeneron ISEF is supported by a community of additional sponsors, including Akamai Foundation, Alfred E. Mann Charities, Aramco, Caltech, Google.org, Gordon and Betty Moore Foundation, Howmet Aerospace Foundation, HP, , Jacobs, King Abdulaziz & his Companions Foundation for Giftedness and Creativity, Microsoft, National Geographic Society, Richard F. Caris Charitable Trust II, Rise, an initiative of Schmidt Futures and the Rhodes Trust, Schattner Foundation, Siemens Energy, Annenburg Foundation, Ballmer Group, Broadcom Foundation, Cesco Linguistic Services, Conrad N. Hilton Foundation, Edison International, Insaco, Oracle Academy, The Eli and Edythe Broad Foundation, The Ralph M. Parsons Foundation and US Army ROTC. Many are entrepreneurs across a wide range of industries. Learn more at https://www.societyforscience.org/isef/.
About Society for ScienceSociety for Science is a champion for science, dedicated to promoting the understanding and appreciation of science and the vital role it plays in human advancement. Established in 1921, Society for Science is best known for its award-winning journalism through Science News and Science News Explores, its world-class science research competitions for students, including the Regeneron Science Talent Search, the Regeneron International Science and Engineering Fair and the Thermo Fisher Scientific Junior Innovators Challenge, and its outreach and equity programming that seeks to ensure that all students have an opportunity to pursue a career in STEM. A 501(c)(3) membership organization, Society for Science is committed to inform, educate and inspire. Learn more at www.societyforscience.org and follow us on Facebook, Twitter, Instagram and Snapchat (Society4Science).
About RegeneronRegeneron (NASDAQ: REGN) is a leading biotechnology company that invents, develops and commercializes life-transforming medicines for people with serious diseases. Founded and led by physician-scientists, our unique ability to repeatedly and consistently translate science into medicine has led to numerous approved treatments and product candidates in development, most of which were homegrown in our laboratories. Our medicines and pipeline are designed to help patients with eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, neurological diseases, hematologic conditions, infectious diseases and rare diseases.
Regeneron believes that operating as a good corporate citizen is crucial to delivering on our mission. We approach corporate responsibility with three goals in mind: to improve the lives of people with serious diseases, to foster a culture of integrity and excellence and to build sustainable communities. Regeneron is proud to be included on the Dow Jones Sustainability World Index and the Civic 50 list of the most “community-minded” companies in the U.S. Throughout the year, Regeneron empowers and supports employees to give back through our volunteering, pro bono and matching gift programs. Our most significant philanthropic commitments are in the area of early science education, including the Regeneron Science Talent Search and the Regeneron International Science and Engineering Fair (ISEF).
For more information, please visit www.Regeneron.com or follow Regeneron on LinkedIn, Instagram, Facebook or X.
More information about the top winners and access to visual assets visit: https://www.societyforscience.org/isef-2024-media-kit.
Media ContactsJoseph Brown, [email protected]
Gayle Kansagor, Society for [email protected]
Photo – https://mma.prnewswire.com/media/2416174/Regeneron_ISEF_2024_Winners_Photo.jpg
Logo – https://mma.prnewswire.com/media/2416197/Society_for_Science_Logo.jpg

View original content:https://www.prnewswire.co.uk/news-releases/more-than-9-million-awarded-to-high-school-scientists-and-engineers-at-the-regeneron-international-science-and-engineering-fair-2024-302149316.html

Artificial Intelligence

J.P. Morgan Life Sciences Private Capital, Blue Horizon Advisors and United Al Saqer Announce Winner of Inaugural 2024 Life Sciences Innovation Summit

Published

3 hours ago

May 17, 2024

CISION (PR Newswire)

In conjunction with Abu Dhabi Global Healthcare Week 2024
ABU DHABI, UAE, May 17, 2024 /PRNewswire/ — J.P. Morgan Life Sciences Private Capital, Blue Horizon Advisors and United Al Saqer Group announced today Rayees Rahman of Harmonic Discovery as the winner of the inaugural J.P. Morgan Asset Management: Life Sciences Innovation Summit. Harmonic Discovery is a precision pharmacology company applying its generative chemistry platform to advance next-generation kinase inhibitors.

In partnership with the Department of Health – Abu Dhabi (DoH), the Summit took place on May 14-15, 2024 at Cleveland Clinic Abu Dhabi and showcased the 11 innovative finalists, as well as highlighted existing innovators and opportunities in the Emirate of Abu Dhabi. The event also featured keynote speeches from Dr. Laurie Glimcher of Dana-Farber Cancer Institute, Dr. Shahrukh Hashmi of the Department of Health – Abu Dhabi, and Dr. David Ho of Columbia University Medical Center and provided attendees networking opportunities to gain valuable insights into the future of life sciences innovation.
In addition, the jury designated Chun-Hao Huang of Algen Biotechnologies as honourable mention. Algen Biotechnologies is a platform therapeutics and drug discovery company using world-leading CRISPR and AI to find treatments for cancer, inflammation and metabolic diseases.
The winners were selected by an esteemed, international panel of judges, which included:Laurie Glimcher, MD, President and CEO at Dana-Farber Cancer InstituteJorge Guzman, MD, CEO at Cleveland Clinic Abu DhabiProf. Shahrukh Khurshid Hashmi, MD, Director of Research, Department of Health, Abu DhabiYasmine Hayek Kobeissi, PhD, CQF, BSc., Executive Director at Blue Horizon AdvisorsAnya Schiess, Managing Partner at J.P. Morgan Life Sciences Private CapitalWalid Zaher, PhD, Co-Founder and CEO, Carexso
Dr. Asma Al Mannaei, Executive Director of the Research and Innovation Centre at the Department of Health – Abu Dhabi said: “Under the directives of the UAE’s wise leadership, and renowned for its world-leading medical infrastructure, Abu Dhabi stands at the forefront of healthcare excellence, offering an unparalleled opportunity for advancement in healthcare for global partners. It was our utmost pleasure hosting the J.P. Morgan Asset Management Life Sciences Innovation Summit 2024 on the sidelines of Abu Dhabi Global Healthcare Week and we commend the winners for their pioneering efforts in driving impactful advancements in healthcare; their dedication to innovation not only transforms the landscape of medicine, but also holds the promise of improving lives worldwide.”
Stephen Squinto, PhD, Chief Investment Officer, J.P. Morgan Life Sciences Private Capital said: “We are thrilled with the level of biotech passion and innovation that we observed at this year’s Summit in Abu Dhabi. The energy was truly palpable we are thrilled to announce Rayees Rahman as the winner of our first Life Sciences Innovation Summit. Harmonic Discovery’s approach embodies the next generation of drug discovery and development. We appreciate the time and effort of all participants and cannot wait for our next event in the region.”
Nabil Kobeissi, Chief Executive Officer of Blue Horizon Advisors, said: “As the main sponsor, we are committed to nurturing and fostering the growth of all 11 finalists in this vibrant biotech ecosystem. This Summit marks the beginning of a transformative journey, and we are confident that it will pave the way for a flourishing hub in the region. We are also pleased to announce that we will commit to invest in and partner with the winner, Harmonic Discovery, to support its future growth in the region.”
Sponsors for the event included J.P. Morgan Life Sciences Private Capital, J.P. Morgan Commercial Bank, Blue Horizon Advisors, United Al Saqer Group, Thermo Fisher Scientific, and Salam Capital. The Summit organisation, logistics and finalist recruitment were facilitated by Lyfebulb.
Of importance, at the Summit, Mr. Mohamed Al Breiki, Executive Director of Sustainable Development at Masdar City, announced that Masdar City Free Zone would award all 11 Finalists complimentary business licenses to further support their establishment in the region. Masdar City is one of the world’s most sustainable urban developments and innovation hubs with a growing focus on life science entrepreneurship in Abu Dhabi.

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Artificial Intelligence

Congregating in the Lion City for a Win-Win Future of Intelligent Computing at the Global Data Center Facility Summit 2024

Published

5 hours ago

May 17, 2024

CISION (PR Newswire)

congregating-in-the-lion-city-for-a-win-win-future-of-intelligent-computing-at-the-global-data-center-facility-summit-2024

SINGAPORE, May 17, 2024 /PRNewswire/ — On May 17, 2024, the Global Data Center Facility Summit 2024 was held in Singapore with the theme of “Power the Digital Era Forward.” At the summit, over 600 data center industry leaders, technical experts, and ecosystem partners gathered to discuss new trends and opportunities of the global data center industry in the intelligent computing era. The attendees also got to experience all-scenario, all-ecosystem, and all-service end-to-end (E2E) solutions, share innovative practices of green data centers in the Asia Pacific and Europe, and experience the exhibition vehicle to unveil the mystery of Outdoor PowerPOD that features one power system per container. By fully embracing the intelligent computing era, Huawei strives to power the digital era forward.

Seizing Opportunities Brought by AI and Jointly Building Green & Reliable Computing Infrastructure
At the opening speech, Charles Yang, Senior Vice President of Huawei and President of Marketing, Sales and Services, Huawei Digital Power, noted that since ChatGPT ushered in the AI era, large models keep pushing the limits of computing power and the intelligent computing industry is witnessing an unprecedented construction boom. As predicted, 100 GW will be added to the global data center installed capacity and the market value will exceed US$600 billion in the next five years.
According to Charles, with opportunities come challenges. The primary challenge concerning the data center industry is reliability and electricity. Data centers are scaling up from the MW-level to the GW-level. E2E reliability of data centers is becoming even more important than ever. In response to the opportunities, Huawei will work with customers and partners to expand the industry space.
Steering Data Centers to the AI Era with Product + Service + Ecosystem
During the summit, Sun Xiaofeng, President of Huawei Data Center Facility & Critical Power Business, delivered a speech titled “Power the Digital Era Forward. ” He stated that as AI large models are penetrating, the surging compute demands drive the expansive growth in data center.
To address the challenges, Huawei strives to build product + service + ecosystem E2E data center solutions that feature fast deployment, flexible cooling, green energy, and ultimate reliability.
Fast deployment: Data centers are fully modularized and prefabricated to ensure high quality and efficient construction.Flexible cooling: Air-liquid fusion and integrated cooling source emerges as the optimal cooling architecture for intelligent computing.Green energy: New generation-grid-load-storage integrated solution is built to ensure the sound operations of intelligent computing centers.Ultimate reliability: Data centers are safeguarded through reliable products and preventive protection.Currently, Huawei’s global service network covers more than 170 countries with over 1800 professional engineers, providing 24/7 technical support. With N+ flagship service centers, Huawei has built a one-hour service radius for its customers.
The ecosystem is a key part for a win-win future of intelligent computing. Huawei works with partners to develop comprehensive E2E solutions and provide customers with one-stop data center services.
During the summit, Huawei and the ASEAN Centre for Energy released a white paper on “Building Next Generation Data Center Facility in ASEAN.” The document provides insights into the status quo, challenges, and trends of data centers in the ASEAN region, and emphasizes that efficient and energy-saving products and solutions should be applied. It also proposes future-oriented policy recommendations for data center markets.
In the ecosystem exhibition area, Huawei showcased scenario-based solutions for large-, medium-, and small-sized data centers, and demonstrated data center consulting, design, integrated development, and delivery capabilities with dozens of ecosystem partners including CIMC, Weichai, CSCEC, and Huashi.
On a special note, the Huawei Outdoor PowerPOD exhibition vehicle made its global debut. The Huawei Outdoor PowerPOD features one power system per container, outdoor deployment, plug-and-play, and high protection rating and reliability. It has become the preferred choice for decoupling the power supply architecture.
A single tree cannot make a forest.
AI is presenting great opportunities. By delving into the industry, aggregating partner ecosystems, and making innovations applicable to transformations, Huawei will continue to help customers build reliable computing infrastructure, accelerating the industry to embrace AI and powering the digital era forward.
Photo – https://mma.prnewswire.com/media/2415818/Global_Data_Center_Facility_Summit_2024.jpg

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