Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — FY2014/15 Earnings Presentation
25 slides from Sia Engineering's earnings presentation, May 13, 2015
Slide 1: FY2014/15 Performance Review
FY2014/15 Performance Review 1
Slide 2: Financial Review
SIA ENGINEERING COMPANY Financial Review SIA ENGINEERING company SIAENGIng=RNG company 2 SIA ENGINEERING COMPANY y,
Slide 3: Summary of Group Results
Summary of Group Results FY1415 FY1415 FY1314 Variance $M $M % Revenue 1,120.6 1,178.2 - 4.9 Expenditure 1,036.6 1,062.6 - 2.4 Operating profit 84.0 115.6 - 27.3 Share of results of Assoc/JVs, net of tax 106.3 162.6 - 34.6 Profit before tax 205.4 294.0 - 30.1 Net profit 183.3 265.7 - 31.0 Net profit
Slide 4: Group Profit for FY2014/15
Group Profit for FY2014/15 270.0 265.7 250.0 +8.4 230.0 +2.5 +3.0 210.0 -82.4 -40.0 S$M 190.0 183.3 170.0 -56.3 140.0 Share of Non- Group Exchange profits of JV operating Tax Operations difference & Assoc Items Provision 0.0 FY1314 FY1415 4
Slide 5: Joint Venture and Associated Companies
Joint Venture and Associated Companies FY1415 FY1415 FY1314 Variance $M $M % Share of profits after tax Repair and Overhaul - Engine Repair & Overhaul Centres 67.6 125.0 - 45.9 - Others 35.8 34.9 + 2.6 103.4 159.9 - 35.3 Line Maintenance 2.9 2.7 + 7.4 106.3 162.6 - 34.6 5
Slide 6: Breakdown of Group Revenue
Breakdown of Group Revenue FY1415 FY1415 FY1314 Variance $M $M % Airframe & Component Overhaul 490.3 579.1 - 15.3 Fleet Management 188.1 164.5 + 14.3 Repair & Overhaul 678.4 743.6 - 8.8 Line Maintenance 442.2 434.6 + 1.7 1,120.6 1,178.2 - 4.9 6
Slide 7: Group Expenditure
Group Expenditure FY1415 FY1415 FY1314 Variance $M $M % Staff costs 476.7 508.4 - 6.2 Materials 176.7 223.1 - 20.8 Subcontract costs 178.5 145.7 + 22.5 Overheads 204.7 185.4 + 10.4 Expenditure 1,036.6 1,062.6 - 2.4 7
Slide 8: Group Operating Profit by Segment
Group Operating Profit by Segment FY1415 FY1415 FY1314 Variance $M $M % Repair & Overhaul (14.3) 32.5 n.m. Line Maintenance 98.3 83.1 + 18.3 84.0 115.6 - 27.3 8
Slide 9: Group Operating Profit by Segment
Group Operating Profit by Segment FY1415 1H FY1415 2H FY1415 FY1415 $M $M $M Repair & Overhaul (8.8) (5.5) (14.3) Line Maintenance 45.4 52.9 98.3 36.6 47.4 84.0 9
Slide 10: SIA vs Non-SIA Revenue
SIA vs Non-SIA Revenue FY1415 SIA Non-SIA Total $M $M $M SIAEC 670.8 361.7 1,032.5 % of non-SIA work 35% Subsidiary Cos 59.6 76.9 136.5 % of non-SIA work 56% JV & Associated Cos - Repair & Overhaul 553.2 2,299.4 2,852.6 - Line Maintenance 15.0 30.1 45.1 568.2 2,329.5 2,897.7 % of non-SIA work 80% Co
Slide 11: Summary of Group Results
Summary of Group Results 4Q FY1415 4QFY1415 4QFY1314 Variance $M $M % Revenue 276.0 311.1 - 11.3 Expenditure 252.9 276.9 - 8.7 Operating profit 23.1 34.2 - 32.5 Share of results of Assoc/JVs, net of tax 21.3 36.1 - 41.0 Profit before tax 46.6 73.2 - 36.3 Net profit 41.4 65.2 - 36.5 Net profit margin
Slide 12: Group Balance Sheet
Group Balance Sheet 31 Mar 2015 31 Mar 2014 $M $M Equity attributable to owners of the parent 1,324.9 1,360.9 Non-controlling interests 24.7 29.6 Total equity 1,349.6 1,390.5 Non-current liabilities 50.5 40.4 1,400.1 1,430.9 Represented by: Non-current assets 884.1 842.0 Cash 463.7 535.7 Other curre
Slide 13: Financial Statistics
Financial Statistics FY1415 FY1314 Variance Basic earnings per share (cents) 16.36 23.88 - 31.5 % Return on average shareholders' funds (%) 13.6 20.0 - 6.4 ppt Mar 15 Mar 14 Variance Net asset value per share (cents) 118.1 122.0 - 3.2 % 13
Slide 14: Final Dividend
Final Dividend FY1415 FY1314 Final Dividend (in cents per share) Ordinary 8.5 13.0 Special - 5.0 Total Dividend 14.5 * 25.0 * Inclusive of interim dividend of 6 cents per share paid on 25 November 2014. 14
Slide 15: Operations Review
15 SIA ENGINEERING COMPANY Operations Review SIA ENGINEERING company SIAENGIng=RNG company SIA ENGINEERING COMPANY y,
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: 181 aircraft Management 16
Slide 17: Line Maintenance
Line Maintenance -1.0% FY14/15 134,063 Flights handled at Changi Airport FY13/14 135,366 8 New Contracts 12 Renewed Contracts Taiwan 17
Slide 18: Aircraft & Component Services
Aircraft & Component Services Maintenance checks at Singapore base: FY14/15 FY13/14 ‘A’ checks* 376 384 ‘C’ checks 68 88 ‘D’ checks 17 37 * Include ‘A’ checks by Line Mtce at Changi Airport 12 New/Renewed Contracts Maintenance checks at Clark base: FY14/15 FY13/14 ‘A’ checks 9 30 ‘C’ checks 18 29 18
Slide 19: Fleet Management
Fleet Management 124 aircraft 29 aircraft 9 aircraft 12 aircraft 7 aircraft FMP Fleet Size: 181 aircraft Singapore Taiwan Australia 19
Slide 20: Key Developments
Key Developments Fleet Management JV in Singapore to serve airlines in Asia-Pacific & beyond � Leverage on: � Boeing’s OEM expertise & e-enabling technology � SIAEC’s extensive MRO experience � Provide airlines with customized & integrated fleet management services � Service offerings for Boeing 737
Slide 21: SIAEC Group: JVs in 9 countries
SIAEC Group: 26 JVs in 9 countries Fleet Engine & Engine Part Repair Component Repair & Overhaul and Line & Airframe Maintenance Management & Overhaul Knowledge-based Aircraft Singapore Aero Fuel Accessory Boeing Asia Maintenance SIA Engineering Eagle Services Asia (USA) Inc Engine Services Jamco Si
Slide 22: Key Developments
Key Developments SIAEC Training Academy appointed Airbus Maintenance Training Centre � SIAEC Training Academy equipped with Airbus latest maintenance devices and courseware � Maintenance training for Airbus A320, A330, A380 and A350 � Strengthens SIAEC’s comprehensive service offerings to airlines i
Slide 23: Key Developments
Key Developments SIAEC signs $2.9 billion Services Agreement with SIA � Renewal of current Services Agreement � 3-year term, with options to renew for 3 years and a further 2 years � Covers MRO and Fleet Management support services 23
Slide 24: Outlook
Outlook Operating environment remains challenging. Reduction in engine shop visits due to improved reliability of newer generation engines, while older generation engines are being phased out. The Company is taking initiatives to position itself for the future. One such initiative is the fleet manag
Slide 25: FY2014/15 Performance Review
FY2014/15 Performance Review 25
SIA Engineering Company — FY2014/15 Earnings Presentation on 6ix