Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — FY2004/05 Earnings Presentation
19 slides from Sia Engineering's earnings presentation, May 12, 2005
Slide 1: FY04/05 Performance Review Analyst/Media Briefing
FY04/05 Performance Review Analyst/Media Briefing 12 May 2005 1
Slide 2: Financial Review
Financial Review , SIA ENGINEERING COMPANY
Slide 3: Summary of Group Results
Summary of Group Results FY04/05 FY03/04 Variance S$M S$M % Revenue 807.5 678.7 + 19.0 Operating Profit 105.5 78.9 + 33.7 Profit before tax 199.0 128.9 + 54.4 Profit attributable 175.1 139.9 + 25.2 to shareholders 3
Slide 4: Revenue Composition
Revenue Composition FY04/05 FY03/04 Variance S$M S$M % Labour revenue 550.7 457.5 + 20.4 Material revenue 203.6 181.7 + 12.1 Fleet Management 30.9 11.3 +173.5 Others 22.3 28.2 - 20.9 Revenue 807.5 678.7 + 19.0 % of non-SIA work 24% 21% + 3 pts - Aircraft & Component 529.9 430.4 + 23.1 - Line Mainten
Slide 5: Group Expenditure
Group Expenditure FY04/05 FY03/04 Variance S$M S$M % Staff costs 359.7 285.8 + 25.9 Materials 203.6 181.7 + 12.1 Overheads 138.7 132.3 + 4.8 Expenditure 702.0 599.8 + 17.0 5
Slide 6: Profitability
Profitability FY04/05 FY03/04 Variance S$M S$M % Operating profit 105.5 78.9 + 33.7 Share of associate and JV profits 75.5 48.8 + 54.7 Profit before tax 199.0 128.9 + 54.4 Profit after tax 175.4 140.0 + 25.3 Net profit margin (%) 21.7 20.6 + 1.1 pts 6
Slide 7: Financial Statistics
Financial Statistics Mar 05 Mar 04 Variance % Shareholders’ funds (S$M) 858.5 925.8 - 7.3 Net asset value per share 84.4 92.1 - 8.4 (cents) Cash position (S$M) 325.9 472.4 - 31.0 FY04/05 FY03/04 Variance EPS (cents) 17.3 14.0 +23.6% Return on average 19.6 15.9 +3.7pts shareholders’ funds (%) 7
Slide 8: Proposed Dividend for FY04/05
Proposed Dividend for FY04/05 S$M Interim Dividend: Ordinary 3.0 cents/share# 30.4 Final Dividend: Ordinary 4.5 cents/share# 45.8 Total 7.5 cents/share# 76.2 Gross dividend yield * 3.2% Payout ratio 43.5% # 10 cents par value * based on share price of $2.33 as at 31 March 2005 8
Slide 9: Operational Review
Operational Review 9 SIA ENGINEERING COMPANY
Slide 10: Line Maintenance
Line Maintenance Flights Handled at Changi Airport: FY04/05 FY03/04 Change 78,600 64,300 +22.2% Captured 10 out of 13 airlines that inaugurated services to SIN 10
Slide 11: Airframe & Component Overhaul
Airframe & Component Overhaul 04/05 03/04 A checks 382 358 C checks 118 86 D checks 27 28 11
Slide 12: Order Books Strong
Order Books Strong New Contracts 1 - 5 years 1. Air Atlanta Icelandic 2. Air Caledonie International 3. Air China Cargo 4. Cebu Pacific Air 5. Dubai Air Wing 6. Japan Airlines Domestic 7. SilkAir 8. Tiger Airways 9. Virgin Atlantic Airways 12
Slide 13: Major Events in FY04/05
Major Events in FY04/05 May 2004 Announced B747-400 freighter conversion. May 2004 Signed $100-120M FMP contract with SilkAir. Jul 2004 Signed JVA to form Aircraft Interior Modifications Centre. Sep 2004 Signed $110M FMP contract with Tiger Airways. Dec 2004 Signed MOU for hydraulic component JV. JV
Slide 14: B747-400 PTF
B747-400 PTF Secured orders for 7 freighters to be delivered in 2006-2008 Seek significant share of B747-400 PTF market Attract post-conversion maintenance 14
Slide 15: Joint Ventures
Joint Ventures Jamco Aero Design & Engineering JV partners: Jamco America & Jamco Corp SIAEC: 45% equity share Centre for turnkey aircraft interior modifications One of the first in the region 15
Slide 16: Joint Ventures
Joint Ventures Aviation Partnership (Philippines) Corporation JV partners: Cebu Pacific Air SIAEC: 51% equity share 3rd line maintenance joint venture outside Singapore Line maintenance and light maintenance checks at 14 airports in the Philippines 16
Slide 17: Joint Ventures
Joint Ventures Aerospace Component Engineering Services JV partners: Parker Aerospace Group SIAEC: 51% equity share First in the region to provide original-equipment MRO support of Parker components and systems Latest technologies to service the A380 and 787 Dreamliner 17
Slide 18: Outlook for FY05/06
Outlook for FY05/06 With our investments in 2 additional hangars, when they become fully operational this year, revenue is expected to improve in tandem with the increase in capacity. Rising costs and volatilities in the US dollar continue to pose significant challenges to the industry and the Compa
Slide 19: Thank You
19 Thank You SIA ENGINEERING COMPANY
SIA Engineering Company — FY2004/05 Earnings Presentation on 6ix