Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — H1 FY2014/15 Earnings Presentation
21 slides from Sia Engineering's earnings presentation, Nov 5, 2014
Slide 1: H1 FY2014/15 Performance Review
H1 FY2014/15 Performance Review
Slide 2: Financial Review
» SIA ENGINEERING COMPANY Financial Review
Slide 3: Summary of Group Results 1H FY1415
Summary of Group Results 1H FY1415 1H FY1415 1H FY1314 Variance $M $M % Revenue 579.3 583.3 - 0.7 Expenditure 542.7 527.1 + 3.0 Operating profit 36.6 56.2 - 34.9 Share of results of Assoc/JVs, net of tax 59.7 88.6 - 32.6 Profit before tax 106.7 154.0 - 30.7 Net profit 95.6 140.0 - 31.7 Net profit ma
Slide 4: Summary of Group Results 2Q FY1415
Summary of Group Results 2Q FY1415 2Q FY1415 2Q FY1314 Variance $M $M % Revenue 285.2 293.9 - 3.0 Expenditure 269.3 265.4 + 1.5 Operating profit 15.9 28.5 - 44.2 Share of results of Assoc/JVs, net of tax 29.1 45.6 - 36.2 Profit before tax 47.1 78.0 - 39.6 Net profit 42.1 71.0 - 40.7 Net profit margi
Slide 5: Group Profit for 1H FY1415
Group Profit for 1H FY1415 140.0 140.0 130.0 +4.0 120.0 -44.4 110.0 -23.6 S$M 100.0 +2.2 95.6 +1.9 90.0 80.0 -28.9 70.0 Share of Non- Tax Group Exchange profits of JV operating Provision Operations difference & Assoc Items 0.0 1H 1H FY1314 FY1415 5
Slide 6: Joint Venture and Associated Companies
Joint Venture and Associated Companies 1H FY1415 1H FY1415 1H FY1314 Variance $M $M % Share of profits after tax Repair and Overhaul - Engine Repair & Overhaul Centres 39.1 64.1 - 39.0 - Others 19.4 23.2 - 16.4 58.5 87.3 - 33.0 Line Maintenance 1.2 1.3 - 7.7 59.7 88.6 - 32.6 6
Slide 7: Breakdown of Group Revenue
Breakdown of Group Revenue 1H FY1415 1H FY1415 1H FY1314 Variance $M $M % Airframe & Component Overhaul 262.0 288.3 - 9.1 Fleet Management 96.3 79.0 + 21.9 Repair & Overhaul 358.3 367.3 - 2.5 Line Maintenance 221.0 216.0 + 2.3 579.3 583.3 - 0.7 7
Slide 8: Group Expenditure
Group Expenditure 1H FY1415 1H FY1415 1H FY1314 Variance $M $M % Staff costs 245.8 257.1 - 4.4 Materials 100.1 112.4 - 10.9 Subcontract costs 95.6 66.6 + 43.5 Overheads 101.2 91.0 + 11.2 Expenditure 542.7 527.1 + 3.0 8
Slide 9: Group Operating Profit by Segment
Group Operating Profit by Segment 1H FY1415 1H FY1415 1H FY1314 Variance $M $M % Repair & Overhaul (7.4) 15.1 n.m. Line Maintenance 44.0 41.1 + 7.1 36.6 56.2 - 34.9 9
Slide 10: SIA vs Non-SIA Revenue
SIA vs Non-SIA Revenue 1H FY1415 SIA Non-SIA Total $M $M $M SIAEC 337.4 194.2 531.6 % of non-SIA work 37% Subsidiary Cos 31.8 41.4 73.2 % of non-SIA work 57% JV & Associated Cos - Repair & Overhaul 278.8 1,230.9 1,509.7 - Line Maintenance 7.7 11.1 18.8 286.5 1,242.0 1,528.5 % of non-SIA work 81% Com
Slide 11: Group Balance Sheet
Group Balance Sheet 30 Sep 2014 31 Mar 2014 $M $M Equity attributable to owners of the parent 1,272.0 1,360.9 Non-controlling interests 24.2 29.6 Total equity 1,296.2 1,390.5 Non-current liabilities 44.1 40.4 1,340.3 1,430.9 Represented by: Non-current assets 864.8 842.0 Cash 391.2 535.7 Other curre
Slide 12: Financial Statistics
Financial Statistics 1H FY1415 1H FY1314 Variance Basic earnings per share (cents) 8.5 12.6 - 32.2 % Return on average shareholders' funds (%) 17.2 21.6 - 4.4 ppt Sep 14 Mar 14 Variance Net asset value per share (cents) 113.5 122.0 - 7.0 % 12
Slide 13: Outlook
Outlook Group’s performance continues to be affected by decline in engine shop visits & heavy checks. Pressure on margins, rising business costs, intense competition. Stepping up productivity improvement efforts. Staying the course of pursuing value-added collaborations with strategic partners. This
Slide 14: Interim Dividend
Interim Dividend 1H FY1415 1H FY1314 Interim Dividend (in cents per share) Ordinary 6.0 7.0 14
Slide 15: Operations Review
» SIA ENGINEERING COMPANY Operations Review
Slide 16: Core Businesses
Core Businesses Line 34 airports in 7 countries Maintenance Aircraft & 6 hangars in Singapore Component 3 hangars in the Philippines Services Fleet Fleet size: 170 aircraft Management 16
Slide 17: Line Maintenance
Line Maintenance +2.3% H1 FY14/15 67,090 Flights handled at Changi Airport H1 FY13/14 65,572 3 New Contracts 7 Renewed Contracts Taiwan 17
Slide 18: Aircraft & Component Services
Aircraft & Component Services Maintenance checks at Singapore base: H1 FY14/15 H1 FY13/14 ‘A’ checks* 192 193 ‘C’ checks 34 37 ‘D’ checks 10 23 * Include ‘A’ checks by Line Mtce at Changi Airport 8 New Contracts Maintenance checks at Clark base: H1 FY14/15 H1 FY13/14 ‘A’ & ‘E’ checks 9 15 ‘C’ checks
Slide 19: Fleet Management
Fleet Management 118 aircraft 29 aircraft 6 aircraft 12 aircraft 5 aircraft FMP fleet size: 170 aircraft SIAEC is one of the world’s largest fleet management service providers 19
Slide 20: Major Event
Major Event 9 July 2014: SIAEC signed agreement with Boeing to form a JV based in Singapore to serve airlines in the Asia-Pacific and beyond � Leverage on: � Boeing’s OEM expertise & advanced e-enabling technology � SIAEC’s extensive MRO experience � Customised, comprehensive & integrated fleet mana
Slide 21: H1 FY2014/15 Performance Review
H1 FY2014/15 Performance Review 21
SIA Engineering Company — H1 FY2014/15 Earnings Presentation on 6ix