Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — Q2 FY2009/10 Earnings Presentation
19 slides from Sia Engineering's earnings presentation, Nov 3, 2009
Slide 1: SIA Engineering Company Q2 FY2009/10 Performance Review
SIA ENGINEERING COMPANY Q2 FY2009/10 Performance Review Another World First by SIAEC: Completion of the first A380 24-month check on 23 Sep 2009
Slide 2: Financial Review
FINANCIAL REVIEW Q2 FY2009/10 Performance Review Another World First by SIAEC: Completion of the first A380 24-month check on 23 Sep 2009
Slide 3: Summary of Group Results – Quarter 1 & 2
Summary of Group Results – Quarter 1 & 2 1HFY0910 1Q 2Q Total Variance $M $M $M % Revenue 244.2 248.1 492.3 + 1.6 Expenditure 231.9 213.0 444.9 - 8.2 Operating profit 12.3 35.1 47.4 + 185.4 Share of JV & Assoc Cos Profits 35.6 32.0 67.6 - 10.1 Profit before tax 52.0 71.3 123.3 + 37.1 Net profit 45.1
Slide 4: Summary of 2QFY0910 Group Results
Summary of 2QFY 0910 Group Results 2QFY0910 2QFY0809 Variance $M $M % Revenue 248.1 279.3 - 11.2 Expenditure 213.0 239.2 - 11.0 Operating profit 35.1 40.1 - 12.5 Share of JV & Assoc Cos Profits 32.0 39.7 - 19.4 Profit before tax 71.3 84.2 - 15.3 Net profit 61.1 73.4 - 16.8 Net profit margin (%) 24.6
Slide 5: Summary of Group Results
Summary of Group Results 1HFY0910 1HFY0809 Variance $M $M % Revenue 492.3 529.5 - 7.0 Expenditure 444.9 473.0 - 5.9 Operating profit 47.4 56.5 - 16.1 Share of JV & Assoc Cos Profits 67.6 83.3 - 18.8 Profit before tax 123.3 149.8 - 17.7 Net profit 106.2 132.1 - 19.6 Net profit margin (%) 21.6 24.9 -
Slide 6: Group Revenue By Segment
Group Revenue By Segment 1Q 2Q 1HFY09101HFY0809 Variance $M $M $M $M % Airframe & Component 121.3 120.5 241.8 290.4 - 16.7 Overhaul Services Line Maintenance & Technical 98.0 98.7 196.7 179.8 + 9.4 Ground Handling Fleet Management 24.9 28.9 53.8 59.3 - 9.3 244.2 248.1 492.3 529.5 - 7.0 Financial Rev
Slide 7: Group Expenditure
Group Expenditure 1HFY0910 1HFY0809 Variance $M $M % Staff costs 202.5 226.3 - 10.5 Materials 108.3 111.0 - 2.4 Overheads 134.1 135.7 - 1.2 Expenditure 444.9 473.0 - 5.9 Financial Review
Slide 8: Key Contributors to Profit
Key Contributors to Profit 1HFY0910 1HFY0809 Variance $M $M % Operating Divisions Airframe & Component Overhaul 1.4 24.1 - 94.2 Line Maintenance 45.3 32.1 + 41.1 Fleet Management 0.7 0.3 + 133.3 JV & Associated Cos Engine Overhaul Centres 41.4 51.0 - 18.8 Others 26.2 32.3 - 18.9 Non-operating 8.3 10
Slide 9: SIA vs Non-SIA Revenue
SIA vs Non-SIA Revenue 1HFY0910 SIA Non-SIA Total $M $M $M Subsidiary companies 8.2 11.6 19.8 % of non-SIA work 59% Joint venture & associated companies - Engine Overhaul Centres 107.4 435.9 543.3 - Others 7.4 149.5 156.9 114.8 585.4 700.2 84% SIA Engineering (SIAEC) 307.8 155.3 463.1 % of non-SIA w
Slide 10: Financial Statistics
Financial Statistics As at As at Variance Sept 09 Mar 09 % Shareholders' equity ($M) 1,185.2 1,228.9 - 3.6 Net asset value per share 109.8 114.0 - 3.7 (cents) Cash position (Grp) ($M) 302.2 372.5 - 18.9 Borrowings ($M) - - - 1HFY0910 1HFY0809 Variance EPS (cents) 9.8 12.3 - 20.3 % Return on average
Slide 11: Operations Review
OPERAT IONS REVIEW Q2 FY2009/10 Performance Review Another World First by SIAEC: Completion of the first A380 24-month check on 23 Sep 2009
Slide 12: Line Maintenance
Line Maintenance H1 FY09/ 10 H1 FY08/ 09 Flights Handled 50,760 49,181 +3.2% 10 New/Renewed Contracts Bass Aero PT Cardig Air Growing Customer Base
Slide 13: Airframe Maintenance
Airframe Maintenance H1 FY09/ 10 H1 FY08/ 09 A checks 152 179 C checks 48 60 D checks 8 12 9 New Contracts Signed Ongoing 3rd Party Contracts Growing Customer Base
Slide 14: Geographical Expansion
Geographical Expansion J une 2009 Bahrain operations started SIAEC becomes MRO service provider of Gulf Air Airbus fleet Sep 2009 Clark operations started First overseas heavy maintenance base Extending Market Reach
Slide 15: Strategic Relationships
Strategic Relationships 17 Apr 09 Gulf Air FMP contract Contract covers additional aircraft and scope of services for Gulf Air fleet Total value of contracts with Gulf Air: US$135M 16 J une 2009 J oint Venture with Safran J V Agreement with leading French OEM on avionics component overhaul SIAEC Gro
Slide 16: Awards
Awards Oct 2009 Singapore Most-Admired Companies The Wall Street J ournal Asia Oct 2009 Singapore Corporate Governance Award (Merit) Securities Investors Association (Singapore) May 2009 Gold Standards: Industry Excellence & Safety Leadership Association of Aerospace Industries (Singapore) Feb 2009
Slide 17: Outlook
Outlook • Airline industry shows early signs of recovery • Prospects for sustained recovery remain uncertain • To broaden revenue base, efforts to extend market reach and increase product mix will continue • Press on with efforts to manage costs, optimise manpower deployment and improve productivity
Slide 18: Interim Dividend
Interim Dividend $M Tax-Exempt (One-Tier) Interim Dividend: Ordinary 5 cents/share 54.0 Payout ratio 50.8% Financial Review
Slide 19: Thank You
Thank You Another World First
SIA Engineering Company — Q2 FY2009/10 Earnings Presentation on 6ix