Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — FY2010/11 Earnings Presentation
16 slides from Sia Engineering's earnings presentation, May 11, 2011
Slide 1: SIA Engineering Company FY2010/11 Performance Review – Financial Review
SIA ENGINEERING COMPANY FY2010/11 Performance Review – Financial Review 1
Slide 2: Summary of Group Results
Summary of Group Results FY1011 FY0910 Variance $M $M % Revenue 1,106.9 1,006.4 + 10.0 Expenditure 971.2 896.0 + 8.4 Operating profit 135.7 110.4 + 22.9 Share of JV & Assoc Cos' Profits 144.4 129.7 + 11.3 Profit before tax 296.1 262.6 + 12.8 Net profit 258.5 236.1 + 9.5 Net profit margin (%) 23.4 23
Slide 3: Breakdown of Group Revenue
Breakdown of Group Revenue FY1011 FY0910 Variance $M $M % Airframe & Component Overhaul 542.5 500.8 + 8.3 Fleet Management 163.8 128.6 + 27.4 Repair & Overhaul 706.3 629.4 + 12.2 Line Maintenance 400.6 377.0 + 6.3 1,106.9 1,006.4 + 10.0 3
Slide 4: Group Expenditure
Group Expenditure FY1011 FY0910 Variance $M $M % Staff costs 452.9 413.5 + 9.5 Materials 223.9 220.4 + 1.6 Subcontract costs 126.8 93.3 + 35.9 Overheads 167.6 168.8 - 0.7 Expenditure 971.2 896.0 + 8.4 4
Slide 5: Profit Contribution
Profit Contribution FY1011 FY0910 Variance $M $M % Operating Segments Repair & Overhaul 41.2 31.5 + 30.8 Line Maintenance 94.5 78.9 + 19.8 135.7 110.4 + 22.9 JVs and Associated Cos Engine Overhaul and Component 130.6 106.7 + 22.4 Others 13.8 23.0 - 40.0 144.4 129.7 + 11.3 5
Slide 6: SIA vs Non-SIA Revenue
SIA vs Non-SIA Revenue SIA Non-SIA Total $M $M $M SIAEC 629.7 413.8 1,043.5 % of non-SIA work 40% Subsidiary Cos 44.8 52.8 97.6 % of non-SIA work 54% JV & Associated Cos - Engine Overhaul and Component 240.8 2,405.9 2,646.7 - Others 41.1 243.2 284.3 281.9 2,649.1 2,931.0 % of non-SIA work 90% Combin
Slide 7: 4Q FY10/11 Group Results
4Q FY10/11 Group Results 4Q FY1011 4Q FY0910 Variance $M $M % Revenue 272.0 272.6 - 0.2 Expenditure 241.4 231.4 + 4.3 Operating profit 30.6 41.2 - 25.7 Surplus on disposal of fixed assets 0.9 6.1 - 85.2 Share of JV & Assoc Cos' Profits 33.5 28.4 + 18.0 Profit before tax 67.9 78.7 - 13.7 Provision fo
Slide 8: Financial Statistics
Financial Statistics As at As at Variance Mar 11 Mar 10 % Shareholders' equity ($M) 1,302.7 1,264.8 + 3.0 Net asset value per share (cents) 119.4 117.0 + 2.1 Cash position (Grp) ($M) 581.4 425.8 + 36.5 FY1011 FY0910 EPS (cents) 23.8 21.9 + 8.6 % Return on average shareholders' funds (%) 20.1 18.9 +
Slide 9: Operations Review
SIA ENGINEERING COMPANY Operations Review
Slide 10: Line Maintenance
Line Maintenance +6.6% FY10/ 11 110,217 Flights handled at Changi Airport FY09/ 10 103,360 12 New Contracts 10 Renewed Contracts 10
Slide 11: Aircraft & Component Services
Aircraft & Component Services FY10/11 FY09/10 ‘A’ checks* 457 452 ‘C’ checks 113 91 ‘D’ checks 21 19 * Performed in Singapore & Bahrain 15 New Contracts Dubai Air Wing 11
Slide 12: Major Events: Strategic Collaborations
Major Events STRATEGIC COLLABORATIONS Nov 2010 J V with Panasonic Avionics Corp • State-of-the-art facility in Singapore will meet growing demand for In-flight Entertainment Equipment MRO services Nov 2010 Launch of 6th overseas line maint J V • Vietnam J V starts with strong base load of 9 airline
Slide 13: Major Events: Strategic Customers
Major Events STRATEGIC CUSTOMERS Oct 2010 Airbus: A340 fleet management • 6-year contract for 5 SIA A340-500 aircraft Dec 2010 SilkAir: A319/320 fleet management • $500 million in contract value • 5-year contract covers SilkAir’s fleet May 2010 Royal Brunei: B777 fleet management • Contract covers 6
Slide 14: Proposed Final Dividend
Proposed Final Dividend FY1011 FY0910 Final Dividend (in cents per share) Ordinary 14.0 13.0 Special 10.0 - Total Dividend 30.0 * 18.0 Dividend Yield** 7.4% 5.1% * Inclusive of interim dividend of 6 cents per share paid on 1 December 2010. 14 ** Based on share price as of 31 March 2011
Slide 15: Outlook
Outlook � In the near term, demand for our core businesses is expected to be sustained. � JV business volumes expected to grow, reflecting recovery of engine and component business. � Prevailing economic environment, including weak US$, continues to pose challenges. � Efforts to improve productivity
Slide 16: Thank you
SIA ENGINEERING COMPANY Thank you 16
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