Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — FY2006/07 Earnings Presentation
19 slides from Sia Engineering's earnings presentation, May 14, 2007
Slide 1: SIA Engineering Company FY06/07 Analyst Briefing
SIA Engineering Company FY06/07 Analyst Briefing 14 May 2007
Slide 2: Financial Review
Financial Review
Slide 3: Summary of Group Results
Summary of Group Results FY 06/07 FY 05/06 Variance $M $M % Revenue 977.4 959.1 + 1.9 Expenditure 875.4 824.4 + 6.2 Operating profit 102.0 134.7 - 24.3 Share of associate and JV 139.5 105.6 + 32.1 profits Profit before tax 271.0 263.3 + 2.9 Net profit 242.1 230.6 + 5.0 Net profit margin (%) 24.8 24.
Slide 4: Factors Affecting Operating Profit
Factors Affecting Operating Profit $M Operating profit 102.0 Factors affecting operating profit: - Profit-sharing bonus 29.1 - Weaker USD 7.8 - Stock option expensing 6.0 Change in operating profit excluding the above factors 144.9 Change over last FY +7.6
Slide 5: Group Revenue Composition
Group Revenue Composition FY 06/07 FY 05/06 Variance $M $M % Labour revenue 654.3 664.0 - 1.5 Material revenue 225.3 226.3 - 0.4 Fleet Management 76.1 45.9 + 65.8 Others 22.6 22.9 - 1.3 Revenue 978.3 959.1 + 2.0 % of non-SIA work 29.4 24.9 + 4.5 pts
Slide 6: Growth of Revenue by JVs
Growth of Revenue by JVs SIA Non-SIA Total $M $M $M Subsidiary, joint venture & associate companies 702.6 1,729.4 2,432.0 % of non-SIA work 71.1% SIA Engineering (SIAEC) 668.5 277.6 946.1 % of non-SIA work 29.3% Combined Group revenue 1,371.1 2,007.0 3,378.1 % of non-SIA work 59.4%
Slide 7: Our Joint Ventures
Our Joint Ventures Profit Contributions from JVs FY 06/07 FY 05/06 Variance $M $M $M % Engine Overhaul Centres 78.8 57.1 + 21.7 + 38.0 (ESA & SAESL) Others 60.7 48.5 + 12.2 + 25.2 Total 139.5 105.6 + 33.9 + 32.1
Slide 8: Group Expenditure
Group Expenditure FY 06/07 FY 05/06 Variance $M $M % Staff costs 418.2 380.1 + 10.0 Materials 234.9 235.7 - 0.3 Overheads 222.3 208.6 + 6.6 Expenditure 875.4 824.4 + 6.2
Slide 9: Financial Statistics
Financial Statistics As at As at Variance Mar 07 Mar 06 % Shareholders' equity ($M) 997.1 1,038.8 - 4.0 Net asset value per share 93.9 100.2 - 6.3 (cents) Cash position (Grp) ($M) 400.3 500.6 - 20.0 Mar 07 Mar 06 EPS (cents) 23.0 22.5 + 2.3 % Return on average 23.8 24.3 - 0.5 pts shareholders' funds
Slide 10: FY06/07 Proposed Final Dividend
FY06/07 Proposed Final Dividend $M Tax-Exempt (One-Tier) Final Dividend: Ordinary 8 cents/share 85.0 Gross dividend yield * 2.6% Payout ratio 52.6% * based on share price of $4.70 as at 30 March 2007 and inclusive of tax- exempt interim dividend of 4 cents/share ($42.3M) paid on 22 November 2006
Slide 11: Operations Review
ze = SIA ENGINEERING COMPANY %
Slide 12: Line Maintenance
Line Maintenance No. of Flights Handled FY 06/07 90,249 +5% FY 05/06 85,959
Slide 13: Line Maintenance
Line Maintenance Signed 9 new contracts $5.5 M annual revenue Shanghai Air Cargo Cebu Pacific New Air-India Express airlines K-Mile air @Changi Jetstar International Cathay Mandala Air Bagan Air Hong Kong Renewed 9 contracts $11 M annual revenue
Slide 14: Airframe & Component Overhaul
Airframe & Component Overhaul Checks FY06/07 FY05/06 A 401 388 C 136 126 D 35 47 ______ ______ 572 561 14 new contracts $85 million
Slide 15: Airframe & Component Overhaul contracts
Airframe & Component Overhaul 10 contracts renewed $47 million
Slide 16: Fleet Management Programme
Fleet Management Programme 2 new contracts $255 million (2-7 years) FMP Revenue $76M +66% $46M 05/06 06/07 Fleet size @31 Mar 07 52 aircraft from 8 airlines
Slide 17: Growing Contribution of JVs
57% Growing Contribution of JVs 45% $155M 40% % of SIAEC Group PBT 38% $118M 33% $80M 17% $72M $49M $42M 3% $4M FY00/01 FY01/02 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 * Includes dividends from HAESL PBT from JVs* ($M) Singapore Ireland Hong Kong Taiwan Indonesia Philippines
Slide 18: Outlook
Outlook Business prospects remain strong Core businesses expected to improve due to strong bookings and further productivity improvements Ongoing strategic initiatives spur growth Pressure on rates
Slide 19: SIA Engineering Company
SIA Engineering Company FY06/07 Analyst Briefing 14 May 2007
SIA Engineering Company — FY2006/07 Earnings Presentation on 6ix