Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — H1 FY2015/16 Earnings Presentation
23 slides from Sia Engineering's earnings presentation, Nov 3, 2015
Slide 1: H1 FY2015/16 Performance Review
H1 FY2015/16 Performance Review 1
Slide 2: Financial Review
) SIA ENGINEERING COMPANY Financial Review SIA ENGINEERING COMPANY y,
Slide 3: Summary of Group Results 1H FY1516
Summary of Group Results 1H FY1516 1H FY1516 1H FY1415 Variance $M $M % Revenue 543.3 579.3 - 6.2 Expenditure 495.4 542.7 - 8.7 Operating profit 47.9 36.6 + 30.9 Share of results of Assoc/JVs, net of tax 42.7 59.7 - 28.5 Profit before tax 97.3 106.7 - 8.8 Net profit 85.8 95.6 - 10.3 Net profit margi
Slide 4: Summary of Group Results 2Q FY1516
Summary of Group Results 2Q FY1516 2Q FY1516 2Q FY1415 Variance $M $M % Revenue 266.0 285.2 - 6.7 Expenditure 239.0 269.3 - 11.3 Operating profit 27.0 15.9 + 69.8 Share of results of Assoc/JVs, net of tax 18.7 29.1 - 35.7 Profit before tax 50.4 47.1 + 7.0 Net profit 44.5 42.1 + 5.7 Net profit margin
Slide 5: Group Profit for 1H FY2015/16
Group Profit for 1H FY2015/16 110.0 105.0 -3.7 100.0 95.6 95.0 S$M 90.0 +15.0 -9.8 85.8 85.0 -17.0 -3.2 -0.9 Share of Non- Group Exchange profits of JV operating Tax Operations difference & Assoc Items Provision 0.0 1H 1H FY1516 FY1415 5
Slide 6: Joint Venture and Associated Companies
Joint Venture and Associated Companies 1H FY1516 1H FY1516 1H FY1415 Variance $M $M % Share of profits after tax Repair and Overhaul - Engine Repair & Overhaul Centres 22.9 39.1 - 41.4 - Others 18.2 19.4 - 6.2 41.1 58.5 - 29.7 Line Maintenance 1.6 1.2 + 33.3 42.7 59.7 - 28.5 6
Slide 7: Breakdown of Group Revenue
Breakdown of Group Revenue 1H FY1516 1H FY1516 1H FY1415 Variance $M $M % Airframe & Component Overhaul 219.3 261.7 - 16.2 Fleet Management 96.7 96.3 + 0.4 Repair & Overhaul 316.0 358.0 - 11.7 Line Maintenance 227.3 221.3 + 2.7 543.3 579.3 - 6.2 7
Slide 8: Group Expenditure
Group Expenditure 1H FY1516 1H FY1516 1H FY1415 Variance $M $M % Staff costs 232.2 245.8 - 5.5 Materials 90.9 100.1 - 9.2 Subcontract costs 77.8 95.6 - 18.6 Overheads 94.5 101.2 - 6.6 Expenditure 495.4 542.7 - 8.7 8
Slide 9: Group Operating Profit by Segment
Group Operating Profit by Segment 1H FY1516 1H FY1516 1H FY1415 Variance $M $M % Repair & Overhaul (6.7) (8.8) + 23.9 Line Maintenance 54.6 45.4 + 20.3 47.9 36.6 + 30.9 9
Slide 10: SIA vs Non-SIA Revenue
SIA vs Non-SIA Revenue 1H FY1516 SIA Non-SIA Total $M $M $M SIAEC 356.5 146.0 502.5 % of non-SIA work 29% Subsidiary Cos 27.7 36.1 63.8 % of non-SIA work 57% JV & Associated Cos - Repair & Overhaul 284.0 1,020.9 1,304.9 - Line Maintenance 7.2 13.9 21.1 291.2 1,034.8 1,326.0 % of non-SIA work 78% Com
Slide 11: Group Balance Sheet
Group Balance Sheet 30 Sep 2015 31 Mar 2015 $M $M Equity attributable to owners of the parent 1,341.0 1,324.9 Non-controlling interests 24.3 24.7 Total equity 1,365.3 1,349.6 Non-current liabilities 53.5 50.5 1,418.8 1,400.1 Represented by: Non-current assets 906.1 884.1 Cash 406.2 463.7 Other curre
Slide 12: Financial Statistics
Financial Statistics 1H FY1516 1H FY1415 Variance Basic earnings per share (cents) 7.65 8.54 - 10.4 % Return on average shareholders' funds (%) 13.3 17.2 - 3.9 ppt Sep 15 Mar 15 Variance Net asset value per share (cents) 119.4 118.1 + 1.1 % 12
Slide 13: Interim Dividend
Interim Dividend 1H FY1516 1H FY1415 Interim Dividend (in cents per share) Ordinary 6.0 6.0 13
Slide 14: Operational Review
14 ) SIA ENGINEERING COMPANY Operational Review SIA ENGINEERING COMPANY y,
Slide 15: Core Businesses
Core Businesses Line 35 airports in 7 countries Maintenance Aircraft & 6 hangars in Singapore Component 3 hangars in the Philippines Services Fleet Fleet size: 193 aircraft Management 15
Slide 16: Line Maintenance
Line Maintenance +1.9% H1 FY15/16 68,332 Flights handled at Changi Airport H1 FY14/15 67,090 3 New Contracts 2 Renewed Contracts 16
Slide 17: Aircraft & Component Services
Aircraft & Component Services 9 New/Renewed Contracts at Singapore base Maintenance checks at Singapore base: H1 FY15/16 H1 FY14/15 ‘A’ checks 190 192 ‘C’ checks 46 34 ‘D’ checks 6 10 Thai Indonesia Maintenance checks at Clark base: H1 FY15/16 H1 FY14/15 ‘A’ checks 14 9 ‘C’ checks 9 4 17
Slide 18: Fleet Management
Fleet Management A320 A320 128 aircraft 32 aircraft 14 aircraft 11 aircraft 8 aircraft FMP Fleet Size: 193 aircraft Singapore Taiwan Australia 18
Slide 19: Key Developments
Key Developments Incorporated on 5 Oct 2015 � 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, 747, 777 & 787 19
Slide 20: SIAEC Group: 27 JVs in 9 countries
SIAEC Group: 27 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 21: Key Developments
Key Developments SIAEC signs $197 million Services Agreement with SilkAir � Renewal of current Services Agreement � Covers MRO and Fleet Management support services for A319/A320 � 5-year term, with option for 1-year extension 21
Slide 22: Outlook
Outlook The operating environment remains challenging. Lower work content and longer check intervals of newer generation aircraft will continue to impact our business. Our efforts to strengthen efficiencies and manage costs have helped to improve the performance of the heavy maintenance and line mai
Slide 23: H1 FY2015/16 Performance Review
H1 FY2015/16 Performance Review 23
SIA Engineering Company — H1 FY2015/16 Earnings Presentation on 6ix