Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — 1H FY2024/25 Earnings Presentation
29 slides from Sia Engineering's earnings presentation, Nov 6, 2024
Slide 1: 1H FY2024/25 Review
1H FY2024/25 REVIEW 6 NOVEMBER 2024
Slide 2: Operational Review
SIA ENGINEERING COMPANY | OPERATIONAL REVIEW
Slide 3: Core Business
CORE BUSINESS Line Maintenance Base Maintenance Component Services Engine Services • 34 airports in 8 • 6 hangars in Singapore • 188 aircraft from 9 • CFM LEAP Quick Turn countries • 3 hangars in the customers under (QT) and Rolls-Royce Philippines Inventory Technical On-Wing Services Management • E
Slide 4: Line Maintenance
LINE MAINTENANCE Stable performance as flight recovery nears pre-pandemic levels • Number of flights handled in 1H FY24/25 increased 9% year-on-year • Flight recovery at the end of 1H FY24/25 was 95%, an improvement of 6 percentage points year-on-year 94% 95% Flights Handled at Changi Airport Flight
Slide 5: Base Maintenance
BASE MAINTENANCE Healthy MRO demand Singapore Base (Number) 1H FY24/25 1H FY23/24 • Higher mix of legacy aircraft Light Checks* 347 385 checks with heavier work content Heavy Checks 33 45 as well as cabin refurbishments * Including ‘A’ checks performed by Line Maintenance at the apron Clark Base (Th
Slide 6: Component Services
COMPONENT SERVICES Increase in work volume from higher flight activities • Eaton Aero Services to be fully operational by early 2026 Groundbreaking of new facility in Shah Alam, Selangor, Malaysia (23 Sep 2024) and new logo unveiling (25 Sep 2024) Component MRO Services Inventory Technical Managemen
Slide 7: Engine Services
ENGINE SERVICES Increasing output on sustained recovery in flights • Aircraft Engine Services delivered it’s 50th LEAP-1A Quick Turn engine since the start of operations in April 2022 • Over 60% year-on-year increase in output for 1HFY23/24 and Work-in-Progress (WIP) levels stabilising despite suppl
Slide 8: Key Customer Contracts
KEY CUSTOMER CONTRACTS Growth in third-party customers Line Maintenance Line Maintenance International Base Maintenance New New New Renewed Extension of service Engine Services New 8
Slide 9: Strategic Partnership Portfolio
STRATEGIC PARTNERSHIP PORTFOLIO 24 subsidiaries and joint ventures across 8 countries with total revenue of S$3.7B in 1H FY24/25 • Singapore Aero Engine Services commenced executing facility Engine and Component expansion plan Singapore Aero Engine Eagle Services Asia Component Aerospace • Eagle Ser
Slide 10: Continuous Improvement
CONTINUOUS IMPROVEMENT Commitment to Key Objectives Innovation in Service Total Employee Operational Excellence Customer Intimacy Delivery Experience • Enhancing MRO processes • Development of new • Time saved for customers • Reduction of laborious and standards of excellence capabilities to broaden
Slide 11: Sustainability
SUSTAINABILITY Increase utilisation of Energy-efficiency Continue electrification renewable energy • Replacement of chillers in three • Electric tow tractors rolled • Ongoing expansion of solar Hangars to more energy- out in hangars panel coverage efficient equipment in progress Adoption of TCFD rec
Slide 12: Financial Review
SIA ENGINEERING COMPANY FINANCIAL REVIEW 12
Slide 13: Key Highlights
KEY HIGHLIGHTS • Demand for MRO services remained healthy in the first half of the financial year ended 30 September 2024. • Group recorded a net profit of $68.8 million in 1H FY24/25, an improvement of 16% year- on-year. • The Company has declared an interim dividend of 2.0 cents per share. 13
Slide 14: Summary of 1H FY24/25 Group Results
SUMMARY OF 1H FY24/25 GROUP RESULTS Revenue increased 12.1%; Group profit improved 16.0% 1H FY24/25 1H FY23/24 Variance $’M $’M $’M % Group Revenue 576.2 514.0 62.2 12.1 Group Expenditure 572.8 513.9 58.9 11.5 Group Operating profit 3.4 0.1 3.3 n.m. Share of profits of JVs & Assoc 58.6 50.
Slide 15: Breakdown by Quarters
BREAKDOWN BY QUARTERS Performance improved quarter-on-quarter 1H FY23/24 1H FY24/25 Group Operating Share of profits of JV Group Profit after tax Profit ($’M) & Assoc ($’M) ($’M) 70.0 68.8 5.0 70.0 58.6 59.3 4.0 3.4 60.0 60.0 50.0 3.0 50.0 50.0 2.0 40.0 40.0 1.0 0.1 30.0 0.0 30.0 20.0 Group Op Profi
Slide 16: Analysis of 1H FY24/25 Group Profit
ANALYSIS OF 1H FY24/25 GROUP PROFIT Improvement in operating performance and higher share of profits $’M +8.6 68.8 30.0 -2.4 20.0 +3.3 9.5M 59.3 1H Operating Share of Non-operating Performance 1H profits items, taxation FY23/24 FY24/25 & NCI 16
Slide 17: Analysis of 1H FY24/25 Group Revenue
ANALYSIS OF 1H FY24/25 GROUP REVENUE Revenue increased 12.1% from healthy MRO demand remained 1H FY24/25 Group Revenue ($’M) 700 580.2 576.2 140.6 600 514.0 500 433.8 576.2 400 362.2 +62.2M Y-o-Y 300 200 435.6 100 0 1H FY22/23 2H FY22/23 1H FY23/24 2H FY23/24 1H FY24/25 Airframe overhaul Engine and
Slide 18: Analysis of 1H FY24/25 Group Expenditure
ANALYSIS OF 1H FY24/25 GROUP EXPENDITURE Expenditure increased 11.5% mainly due to material, manpower and outhouse repair costs. Included startup costs of new base maintenance subsidiary in Malaysia with no corresponding revenue. 1H FY24/25 Group Expenditure ($’M) 68.7 700.0 - 578.0 572.8 96.7 Staff
Slide 19: Breakdown of Share of Profits After Tax
BREAKDOWN OF SHARE OF PROFITS AFTER TAX Contribution increase from all segments Joint Venture and Associated Companies $’M Airframe & Engine Component Line Maintenance +5.9 +1.8 +0.9 21.4% y-o-y 8.6% y-o-y 60.0% y-o-y 33.5 27.6 2.4 22.7 20.9 1.5 1H FY23/24 1H FY24/25 1H FY23/24 1H FY24/25 1H F
Slide 20: Aggregate Revenue of SIAEC, Subsidiaries, JV and Associates
AGGREGATE REVENUE OF SIAEC, SUBSIDIARIES, JV AND ASSOCIATED COMPANIES SIAEC, Subsidiaries, JV and Associated Companies Revenue $'M 4,225.6 4,127.7 3,793.3 466.6 423.0 3,425.6 468.9 3,305.0 315.1 2,873.6 370.8 2,633.3 285.8 251.3 3,704.7 3,759.0 3,324.4 3,110.5 2,934.2 2,587.8 2,382.0 1H FY21/22 2H F
Slide 21: Balance Sheet
BALANCE SHEET Reduction in shareholders’ funds mainly due to dividend payment and reduction in foreign currency translation reserve, partially offset by profits earned during the reporting period. Sep-24 Mar-24 Variance $’M $’M $’M % Total equity 1647.4 1687.1 -39.7 -2.4 Cash and bank balances 493.2
Slide 22: Earnings Per Share and Interim Dividend
EARNINGS PER SHARE AND INTERIM DIVIDEND Earnings per share improved 16.1% 1H FY24/25 1H FY23/24 Basic earnings per share 6.13 5.28 Interim Dividend Ordinary (in cents per share) 2.0 2.0 • Interim dividend will be paid on 29 November 2024 22
Slide 23: Outlook
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Slide 24: 1H FY24/25 at a Glance
1H FY24/25 AT A GLANCE 9% Increase in Strengthening our Core Expanding Capabilities & Flights Handled Geographical Presence Against 1H FY23/24 • Maintaining cost discipline as we navigate elevated costs • Collaborating with OEMs and • Flight recovery at 95% industry partners to increase of pre-Covid
Slide 25: Industry Challenges
INDUSTRY CHALLENGES Supply Chain Tight Labour Elevated Escalating Geopolitical Constraints Market Costs Tensions 25
Slide 26: Growth Avenues
GROWTH AVENUES Building Capabilities Increasing Presence Abroad Expanding Capacity Line Maintenance Base Maintenance Component Services Engine Services Line Maintenance JV with Base Maintenance JV with Eaton to be fully Cambodia Airport Malaysia (BMM) to operational in Shah Alam, Investment Co., Ltd
Slide 27: Awards and Accolades
AWARDS AND ACCOLADES MRO Asia-Pacific Awards 2024 Singapore HR Awards 2024 SkillsFuture Employer Awards 2024 “Aftermarket Service Provider of the Year” “Gold Standard for Excellence in Talent “SkillsFuture Work Study Programme “Marketing Campaign of the Year” Management & Acquisition” Employer Appre
Slide 28: Priorities Ahead
PRIORITIES AHEAD DRIVING PRODUCTIVITY Adopting a targeted approach, focused on highest impact Utilising data, digital, technology, lean and continuous improvement FOCUSING ON MAINTAINING COST PRIORITY PROJECTS DISCIPLINE Underpinning our every action Exercising prudent spending 28
Slide 29: Thank you
Thank you sia enainezrina company {)
SIA Engineering Company — 1H FY2024/25 Earnings Presentation on 6ix