Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — H1 FY2018/19 Earnings Presentation
27 slides from Sia Engineering's earnings presentation, Nov 9, 2018
Slide 1: 1st Half FY18/19 Results Briefing
1st Half FY18/19 Results Briefing
Slide 2: 1st Half FY18/19 Financial Review
1st Half FY18/19 Financial Review 2
Slide 3: 1H18/19 Financial Highlights
1H18/19 Financial Highlights • The Group recorded a net profit of $78.5 million for 1H18/19. • Operating profit at $21.5 million was $17.3 million or 44.6% lower. • Share of profits of associated and joint venture companies increased $18.4 million or 41.8% to $62.4 million. 3
Slide 4: Summary of Group Results 1H18/19
Summary of Group Results 1H18/19 1H18/19 1H17/18 Variance Group (Restated)* $M $M % Revenue 509.0 547.5 - 7.0 Expenditure 487.5 508.7 - 4.2 Operating profit 21.5 38.8 - 44.6 Share of profits of JVs & Assoc 62.4 44.0 + 41.8 Provision for taxation 8.4 9.8 - 14.3 Net profit 78.5 75.3 + 4.2 * Comparativ
Slide 5: Summary of Group Results 2Q18/19
Summary of Group Results 2Q18/19 2Q18/19 2Q17/18 Variance Group (Restated)* $M $M % Revenue 251.3 274.7 - 8.5 Expenditure 240.0 254.6 - 5.7 Operating profit 11.3 20.1 - 43.8 Share of profits of JVs & Assoc 30.0 22.9 + 31.0 Provision for taxation 4.9 5.6 - 12.5 Net profit 38.0 38.6 - 1.6 The Group po
Slide 6: Group Profit for 1H18/19
Group Profit for 1H18/19 S$M 79.0 - 77.0 +18.4 + 3.2 Non- Share of operating 50.0 - Group Exchange profits of items & Tax operations differences JV & assoc NCI provision 0.0 1H17/18 1H18/19 (restated) SIA ENGINEERING COMPANY
Slide 7: Joint Venture and Associated Companies 1H18/19
Joint Venture and Associated Companies 1H18/19 Share of Profit After Tax 1H18/19 1H17/18 Variance $M $M % Engine and component Engine centers 42.8 22.5 + 90.2 Component centers 19.3 21.6 - 10.6 62.1 44.1 + 40.8 Airframe and line maintenance 0.3 (0.1) n.m. 62.4 44.0 + 41.8 Contributions from the engi
Slide 8: Breakdown of Group Revenue 1H18/19
Breakdown of Group Revenue 1H18/19 Group Revenue 1H18/19 1H17/18 Variance $M $M % Airframe and line maintenance Airframe overhaul and line maintenance 442.6 472.7 - 6.4 Fleet management programme 50.8 61.6 - 17.5 493.4 534.3 - 7.7 Engine and component 15.6 13.2 + 18.2 509.0 547.5 - 7.0 Revenue decre
Slide 9: Group Expenditure 1H18/19
Group Expenditure 1H18/19 1H18/19 1H17/18 Variance Group Expenditure (Restated) $M $M % Staff costs 247.5 251.0 - 1.4 Material costs 74.8 90.1 - 17.0 Subcontract costs 61.4 70.0 - 12.3 Overheads 103.8 97.6 + 6.4 487.5 508.7 - 4.2 Expenditure was lower by 4.2%, mainly from lower material and subcontr
Slide 10: Group Operating Profit by Segment 1H18/19
Group Operating Profit by Segment 1H18/19 1H18/19 1H17/18 Variance Group Operating Profit (Restated) $M $M % Airframe and line maintenance 22.6 39.8 - 43.2 Engine and component (1.1) (1.0) - 10.0 21.5 38.8 - 44.6 Group’s operating profit in 1H18/19 was $21.5M was $17.3M or 44.6% lower. 10
Slide 11: SIA vs Non-SIA Revenue 1H18/19
SIA vs Non-SIA Revenue 1H18/19 SIA Non-SIA $M $M SIA Engineering (SIAEC) 273.2 164.4 % of non-SIA work 38% Subsidiary companies 37.0 61.7 % of non-SIA work 63% Joint venture & associated companies - Engine and component 422.7 1,483.9 - Airframe and line Maintenance 49.6 19.1 472.3 1,503.0 % of non-S
Slide 12: Group Balance Sheet
Group Balance Sheet Sep-18 Mar-18 (Restated) $M $M Equity attributable to owners of the parent 1,485.4 1,483.7 Non-controlling interests 32.8 31.3 Total equity 1,518.2 1,515.0 Non-current liabilities 38.7 41.5 1,556.9 1,556.5 Represented by: Non-current assets 902.7 899.7 Cash 455.0 499.7 Other curr
Slide 13: Financial Statistics
Financial Statistics 1H18/19 1H17/18 Variance Financial Statistics (Restated) Return on shareholders' funds (%) (MAA) 13.0 11.8 + 1.2 ppt Basic earnings per share (cents) 7.02 6.72 + 4.5 % Sep-18 Mar-18 Variance (Restated) Net asset value per share (cents) 132.7 132.7 - 13
Slide 14: Interim Dividend
Interim Dividend Interim Dividend 1H18/19 1H17/18 Ordinary 3.0 4.0 (in cents per share) Interim dividend to be paid on 29 November 2018 14
Slide 15: 1st Half FY18/19 Operational Review
1st Half FY18/19 Operational Review 15
Slide 16: Core Business
Core Business Line Maintenance ▪ 39 airports in 8 Countries Aircraft & Component Services ▪ 6 hangars in Singapore ▪ 3 hangars in Philippines Fleet Management ▪ 88 aircraft from 8 airlines 16
Slide 17: Line Maintenance Flights handled at Changi Airport
Line Maintenance Flights handled at Changi Airport 4.1% 75,783 72,771 1H 17/18 1H 18/19 17
Slide 18: Line Maintenance
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Slide 19: Aircraft & Component Services
Aircraft & Component Services 19
Slide 20: Aircraft & Component Services
Aircraft & Component Services Maintenance Checks at Singapore Base Maintenance Checks at Clark Base 1H FY18/19 1H FY17/18 1H FY18/19 1H FY17/18 ‘A’ Checks 223* 219 ‘C’ Checks 31 45 ‘C’ Checks 30 30 * Including ‘A’ checks performed by Line Maintenance at the apron 20
Slide 21: Fleet Management
Fleet Management A320 737 A330 22 aircraft 26 aircraft 20 aircraft 777 747 10 aircraft 10 aircraft 21
Slide 22: Fleet Management
Fleet Management FMP Fleet: 88 aircraft 22
Slide 23: 26 JVs Across 8 Countries
26 JVs Across 8 Countries Airframe and Line Maintenance Engine and Component Aircraft Maintenance SIA Engineering Singapore Aero Component SIA Engineering Japan Eagle Services Asia Services Australia (USA) Engine Services Aerospace Singapore (SIAEJ) (ESA) (AMSA) (SEUS) (SAESL) (CAS) Australia 100% U
Slide 24: Key Developments
Key Developments Incorporation Of Additive Flight Solutions (JV with Stratasys) • Leverage additive manufacturing technology to produce plastic aircraft cabin interior parts as well as tooling for MRO providers • Commenced operations in 2018 Non-binding LOI with Cebu Air to expand MRO Services in th
Slide 25: Key Developments
Key Developments Services Agreement with SilkAir • 37 Boeing 737 MAX aircraft • 12 year-term with option to renew for 5 years Agreement with Thales • In-Flight Entertainment and Connectivity Agreement to maintain Singapore Airlines’ A350 XWB aircraft fitted with Thales’ AVANT IFE system • 10-year te
Slide 26: Outlook
Outlook • With longer maintenance intervals and lighter work content arising from new-generation aircraft, coupled with keen competition, the operating environment will remain challenging. • The transformation journey we have started has been gaining momentum with the progressive implementation of a
Slide 27: End of Performance Review
End of Performance Review ) SIA ENGINEERING COMPANY
SIA Engineering Company — H1 FY2018/19 Earnings Presentation on 6ix