Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — H1 FY2011/12 Earnings Presentation
16 slides from Sia Engineering's earnings presentation, Oct 31, 2011
Slide 1: H1 FY2011/12 Performance Review – Financial Review
SIA ENGINEERING COMPANY H1 FY2011/12 Performance Review – Financial Review 1
Slide 2: Summary of Group Results
Summary of Group Results 1HFY1112 1HFY1011 Variance $M $M % Revenue 550.0 565.4 - 2.7 Expenditure 481.3 494.8 - 2.7 Operating profit 68.7 70.6 - 2.7 Share of JV & Assoc Cos' Profits 77.7 77.0 + 0.9 Profit before tax 155.2 158.5 - 2.1 Net profit 139.3 137.3 + 1.5 Net profit margin (%) 25.3 24.3 + 1.0
Slide 3: 2QFY1112 Group Results
2QFY1112 Group Results 2QFY1112 2QFY1011 Variance $M $M % Revenue 272.4 277.1 - 1.7 Expenditure 238.4 242.7 - 1.8 Operating profit 34.0 34.4 - 1.2 Share of JV & Assoc Cos' Profits 40.5 37.8 + 7.1 Profit before tax 78.0 76.0 + 2.6 Provision for tax 6.0 8.8 - 31.8 Net profit 71.2 66.5 + 7.1 Net profit
Slide 4: Breakdown of Group Revenue
Breakdown of Group Revenue 1HFY1112 1HFY1011 Variance $M $M % Airframe & Component Overhaul 270.5 287.2 - 5.8 Fleet Management 84.8 82.0 + 3.4 Repair & Overhaul 355.3 369.2 - 3.8 Line Maintenance 194.7 196.2 - 0.8 550.0 565.4 - 2.7 4
Slide 5: Group Expenditure
Group Expenditure 1HFY1112 1HFY1011 Variance $M $M % Staff costs 234.5 222.6 + 5.3 Materials 103.3 122.9 - 15.9 Subcontract costs 64.1 58.2 + 10.1 Overheads 79.4 91.1 - 12.8 Expenditure 481.3 494.8 - 2.7 5
Slide 6: Profit Contribution
Profit Contribution 1HFY1112 1HFY1011 Variance $M $M % Operating Segments Repair & Overhaul 28.9 26.8 + 7.8 Line Maintenance 39.8 43.8 - 9.1 68.7 70.6 - 2.7 JVs and Associated Cos Engine Overhaul and Component 69.7 69.5 + 0.3 Others 8.0 7.5 + 6.7 77.7 77.0 + 0.9 6
Slide 7: SIA vs Non-SIA Revenue
SIA vs Non-SIA Revenue SIA Non-SIA Total $M $M $M SIAEC 317.3 196.1 513.4 % of non-SIA work 38% Subsidiary Cos 24.5 30.1 54.6 % of non-SIA work 55% JVs & Associated Cos - Engine Overhaul and Component 392.7 1,112.0 1,504.7 - Others 24.5 137.1 161.6 417.2 1,249.1 1,666.3 % of non-SIA work 75% Combine
Slide 8: Financial Statistics
Financial Statistics 1HFY1112 1HFY1011 EPS (cents) 12.7 12.7 - % Return on average shareholders' funds (%) 21.3 21.9 - 0.6 pts As at As at Variance Sept 11 Mar 11 % Shareholders' equity ($M) 1,194.1 1,302.7 - 8.3 Net asset value per share (cents) 108.9 119.4 - 8.8 Cash position (Grp) ($M) 388.9 581.
Slide 9: Operations Review
» SIA ENGINEERING COMPANY Operations Review
Slide 10: Line Maintenance
Line Maintenance +4.4% H1FY11/ 12 56,967 Flights handled at Changi Airport H1FY10/ 11 54,546 4 New Contracts 3 Renewed Contracts 10
Slide 11: Aircraft & Component Services
Aircraft & Component Services H1FY11/12 H1FY10/11 ‘A’ checks* 228 224 ‘C’ checks 54 62 ‘D’ checks 8 10 * Performed in Singapore & Bahrain 11 New Contracts 11
Slide 12: Major Events: Strategic Customers
Major Events STRATEGIC CUSTOMERS J une 2011 SIA Cargo Services Agreement • Renewal of comprehensive Services Agreement • 5- year term • Contract value: $358 million Sep 2011 Transaero Cabin Reconfiguration • Commenced work on reconfiguration of B777 aircraft Oct 2011 Gulf Air Cabin Reconfiguration •
Slide 13: Major Events: Strategic Partnerships
Major Events STRATEGIC PARTNERSHIPS April 2011 Launch of SAFRAN J oint Venture Facility • J V with world- leading avionics OEM • SAFRAN’ s first avionics Centre of Excellence in Asia May 2011 IFE J V with Panasonic Avionics Corp • Commenced operations at Changi Airport J une 2011 Aircelle GTA • Sign
Slide 14: Interim Dividend
Interim Dividend Interim Dividend (Tax Exempt One-Tier) (in cents per share) Ordinary 6.0 cents 14
Slide 15: Outlook
Outlook � Demand in the near term is expected to be stable. � Prevailing global economic and financial uncertainties will impact recovery of the aviation industry. � Vigilance on cost and efficiency management will remain key priorities. 15
Slide 16: Thank You
» SIA ENGINEERING COMPANY Thank You 16
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