Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — FY2015/16 Earnings Presentation
26 slides from Sia Engineering's earnings presentation, May 11, 2016
Slide 1: FY2015/16 Performance Review
FY2015/16 Performance Review 1
Slide 2: Financial Review
» SIA ENGINEERING COMPANY Financial Review SIA ENGINEERING COMPANY y,
Slide 3: Summary of Group Results
Summary of Group Results FY1516 FY1516 FY1415 Variance $M $M % Revenue 1,112.7 1,120.6 - 0.7 Expenditure 1,008.3 1,036.6 - 2.7 Operating profit 104.4 84.0 + 24.3 Surplus on disposal of a subsi company - 5.8 n.m. Surplus on partial disposal of an assoc company 2.8 - n.m. Loss on liquidation of an ass
Slide 4: Summary of Group Results 4Q FY1516
Summary of Group Results 4Q FY1516 4QFY1516 4QFY1415 Variance $M $M % Revenue 294.2 276.0 + 6.6 Expenditure 266.7 252.9 + 5.5 Operating profit 27.5 23.1 + 19.0 Share of results of Assoc/JVs, net of tax 18.3 21.3 - 14.1 Profit before tax 47.8 46.6 + 2.6 Net profit 41.4 41.4 - Net profit margin (%) 14
Slide 5: Group Profit for FY2015/16
Group Profit for FY2015/16 +37.9 220.0 210.0 200.0 -17.5 190.0 183.3 S$M 180.0 -12.1 176.6 -6.7 170.0 -14.2 -0.8 Non- Share of operating Group Exchange profits of JV items & Tax operations difference & Assoc NCI provision 0.0 FY1415 FY1516 5
Slide 6: Joint Venture and Associated Companies
Joint Venture and Associated Companies FY1516 FY1516 FY1415 Variance $M $M % Share of profits after tax Repair and Overhaul - Engine Repair & Overhaul Centres 50.7 67.6 - 25.0 - Others 40.6 35.8 + 13.4 91.3 103.4 - 11.7 Line Maintenance 2.9 2.9 - 94.2 106.3 - 11.4 6
Slide 7: Breakdown of Group Revenue
Breakdown of Group Revenue FY1516 FY1516 FY1415 Variance $M $M % Airframe & Component Overhaul 450.9 490.3 - 8.0 Fleet Management 201.7 188.1 + 7.2 Repair & Overhaul 652.6 678.4 - 3.8 Line Maintenance 460.1 442.2 + 4.0 1,112.7 1,120.6 - 0.7 7
Slide 8: Group Expenditure
Group Expenditure FY1516 FY1516 FY1415 Variance $M $M % Staff costs 462.9 476.7 - 2.9 Materials 188.8 176.7 + 6.8 Subcontract costs 161.3 178.5 - 9.6 Overheads 195.3 204.7 - 4.6 Expenditure 1,008.3 1,036.6 - 2.7 8
Slide 9: Group Operating Profit by Segment
Group Operating Profit by Segment FY1516 FY1516 FY1415 Variance $M $M % Repair & Overhaul (3.4) (14.3) + 76.2 Line Maintenance 107.8 98.3 + 9.7 104.4 84.0 + 24.3 9
Slide 10: SIA vs Non-SIA Revenue
SIA vs Non-SIA Revenue FY1516 SIA Non-SIA Total $M $M $M SIAEC 706.0 318.8 1,024.8 % of non-SIA work 31% Subsidiary Cos 61.0 76.1 137.1 % of non-SIA work 56% JV & Associated Cos - Repair & Overhaul 583.8 2,203.2 2,787.0 - Line Maintenance 14.7 26.9 41.6 598.5 2,230.1 2,828.6 % of non-SIA work 79% Co
Slide 11: Group Balance Sheet
Group Balance Sheet 31 Mar 2016 31 Mar 2015 $M $M Equity attributable to owners of the parent 1,485.5 * 1,324.9 Non-controlling interests 26.4 24.7 Total equity 1,511.9 1,349.6 Non-current liabilities 54.0 50.5 1,565.9 1,400.1 Represented by: Non-current assets 895.8 884.1 Cash 393.9 463.7 Non-curre
Slide 12: Financial Statistics
Financial Statistics FY1516 FY1415 Variance Basic earnings per share (cents) 15.74 16.36 - 3.8 % Return on average shareholders' funds (%) 12.6 13.6 - 1.0 ppt Mar 16 Mar 15 Variance Net asset value per share (cents) 132.4 118.1 + 12.1 % 12
Slide 13: Final Dividend
Final Dividend FY1516 FY1415 Final Dividend (in cents per share) Ordinary 8.0 8.5 Total Dividend 14.0 * 14.5 * Inclusive of interim dividend of 6 cents per share paid on 24 November 2015. 13
Slide 14: Operational Review
14 » SIA ENGINEERING COMPANY Operational Review SIA ENGINEERING COMPANY y,
Slide 15: Core Businesses
Core Businesses Line 35 airports in 7 countries Maintenance Aircraft & 6 hangars in Singapore Component 3 hangars in the Philippines Services Fleet Fleet size: 156 aircraft Management 15 (Data as at 31 Mar 2016)
Slide 16: Line Maintenance
Line Maintenance +2.8% FY15/16 137,867 Flights handled at Changi Airport FY14/15 134,063 7 New Contracts 9 Renewed Contracts Thai AirAsia Indonesia AirAsia 16
Slide 17: Aircraft & Component Services
Aircraft & Component Services 15 New/Renewed Contracts at Singapore base Maintenance checks at Singapore base: FY15/16 FY14/15 ‘A’ checks 373 376 Australia ‘C’ checks 74 68 ‘D’ checks 16 17 Thai Indonesia Maintenance checks at Clark base: FY15/16 FY14/15 ‘A’ checks 24 9 ‘C’ checks 25 18 17
Slide 18: Fleet Management
Fleet Management A320 A320 90 aircraft 29 aircraft 17 aircraft 12 aircraft 8 aircraft As at 31 Mar 2016 FMP Fleet Size: 156 aircraft Singapore Taiwan 18
Slide 19: Strategic Partnerships: Boeing Asia Pacific Aviation Services
Strategic Partnerships BOEING ASIA PACIFIC AVIATION SERVICES Incorporated on 5 Oct 2015 Fleet Management Services for Boeing 737, 747, 777 & 787 19
Slide 20: Strategic Partnerships
Strategic Partnerships Airframe Maintenance Joint Venture Airbus Centre of Excellence in Asia for A380 and A350 20
Slide 21: Appointed On-Wing Services Provider for Rolls-Royce Trent Engines
Strategic Partnerships SIAEC appointed as On-Wing Services Provider for Trent Family of Roll-Royce Engines 21
Slide 22: Appointed On-site Support Provider for CFM LEAP Engines
Strategic Partnerships SIAEC appointed as On-site Support Provider for CFM LEAP-1A and -1B Engines in Asia Pacific 22
Slide 23: MOU to Establish Joint Venture
Strategic Partnerships MOU to establish Joint Venture Moog Centre of Excellence in Asia Pacific for Moog’s products on new-generation aircraft such as Boeing 787 and A350 23
Slide 24: Innovation & Technology Initiatives
Strategic Partnerships Innovation & Technology Initiatives Investment of up to $50M EDB Support Development of new innovations and solutions to serve future MRO needs of airline customers 24
Slide 25: Outlook
Outlook Operating environment remains challenging. Continue to invest in new competencies and capabilities to meet changing technological demands. Measures to strengthen competitiveness, gain market share and manage costs will remain key priorities. Recent joint ventures with Boeing and Airbus are s
Slide 26: FY2015/16 Performance Review
FY2015/16 Performance Review 26
SIA Engineering Company — FY2015/16 Earnings Presentation on 6ix