Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — FY2013/14 Earnings Presentation
28 slides from Sia Engineering's earnings presentation, May 6, 2014
Slide 1: FY2013/14 Performance Review
FY2013/14 Performance Review
Slide 2: Financial Review
SIA ENGINEERING COMPANY Financial Review SIA ENGINEERING company SIAENGing=ANG company
Slide 3: Summary of Group Results
Summary of Group Results FY1314 FY1314 FY1213 Variance $M $M % Revenue 1,178.2 1,146.7 + 2.7 Expenditure 1,062.6 1,018.6 + 4.3 Operating profit 115.6 128.1 - 9.8 Share of results of Assoc/JVs, net of tax 162.6 150.1 + 8.3 Profit before tax 294.0 297.0 - 1.0 Net profit 265.7 270.1 - 1.6 Net profit ma
Slide 4: Group Profit for FY1314
Group Profit for FY1314 270.1 +12.5 270.0 -4.4 265.7 265.0 -4.2 -0.2 S$M -7.7 260.0 -4.8 Share of 255.0 Group Exchange profits of Non- Operations difference JV & operating Tax Assoc Items Provision 0.0 FY1213 FY1314 4
Slide 5: Share of results of Assoc/JVs, net of tax
Share of results of Assoc/JVs, net of tax 11.6 0.9 162.6 160.0 +12.5 S$M 150.1 150.0 0.0 FY1213 Repair & Line FY1314 Overhaul Maintenance 5
Slide 6: Joint Venture and Associated Companies
Joint Venture and Associated Companies FY1314 FY1314 FY1213 Variance $M $M % Share of profits after tax Repair and Overhaul - Engine Repair & Overhaul Centres 125.0 112.6 + 11.0 - Others 34.9 35.7 - 2.2 159.9 148.3 + 7.8 Line Maintenance 2.7 1.8 + 50.0 162.6 150.1 + 8.3 6
Slide 7: Breakdown of Group Revenue
Breakdown of Group Revenue FY1314 FY1314 FY1213 Variance $M $M % Airframe & Component Overhaul 579.1 551.7 + 5.0 Fleet Management 164.5 173.6 - 5.2 Repair & Overhaul 743.6 725.3 + 2.5 Line Maintenance 434.6 421.4 + 3.1 1,178.2 1,146.7 + 2.7 7
Slide 8: Group Expenditure
Group Expenditure FY1314 FY1314 FY1213 Variance $M $M % Staff costs 508.4 498.2 + 2.0 Materials 223.1 214.2 + 4.2 Subcontract costs 145.7 136.7 + 6.6 Overheads 185.4 169.5 + 9.4 Expenditure 1,062.6 1,018.6 + 4.3 8
Slide 9: Group Operating Profit by Segment
Group Operating Profit by Segment FY1314 FY1314 FY1213 Variance $M $M % Repair & Overhaul 32.5 39.7 - 18.1 Line Maintenance 83.1 88.4 - 6.0 115.6 128.1 - 9.8 9
Slide 10: SIA vs Non-SIA Revenue
SIA vs Non-SIA Revenue FY1314 SIA Non-SIA Total $M $M $M SIAEC 654.6 408.6 1,063.2 % of non-SIA work 38% Subsidiary Cos 61.8 99.9 161.7 % of non-SIA work 62% JV & Associated Cos - Engine Overhaul and Component 1,034.3 2,601.0 3,635.3 - Others 55.5 289.5 345.0 1,089.8 2,890.5 3,980.3 % of non-SIA wor
Slide 11: Summary of Group Results
Summary of Group Results 4Q1314 4Q1314 4Q1213 Variance $M $M % Revenue 311.1 283.5 + 9.7 Expenditure 276.9 252.6 + 9.6 Operating profit 34.2 30.9 + 10.7 Share of results of Assoc/JVs, net of tax 36.1 38.0 - 5.0 Profit before tax 73.2 73.2 - Net profit 65.2 65.9 - 1.1 Net profit margin (%) 21.0 23.2
Slide 12: Breakdown of Group Revenue
Breakdown of Group Revenue 4Q1314 4Q1314 4Q1213 Variance $M $M % Airframe & Component Overhaul 155.6 135.1 + 15.2 Fleet Management 44.7 40.0 + 11.8 Repair & Overhaul 200.3 175.1 + 14.4 Line Maintenance 110.8 108.4 + 2.2 311.1 283.5 + 9.7 12
Slide 13: Group Expenditure
Group Expenditure 4Q1314 4Q1314 4Q1213 Variance $M $M % Staff costs 124.6 129.6 - 3.9 Materials 60.1 51.8 + 16.0 Subcontract costs 43.4 35.5 + 22.3 Overheads 48.8 35.7 + 36.7 Expenditure 276.9 252.6 + 9.6 13
Slide 14: Group Operating Profit by Segment
Group Operating Profit by Segment 4Q1314 4Q1314 4Q1213 Variance $M $M % Repair & Overhaul 11.7 9.3 + 25.8 Line Maintenance 22.5 21.6 + 4.2 34.2 30.9 + 10.7 14
Slide 15: Statement of Cash Flows
Statement of Cash Flows $M FY1314 FY1213 Cash flow generated from / (used in) : - Operating activities 113.0 133.6 - Investing activities 101.4 110.5 - Financing activities (201.6) (219.0) Net cash inflow 12.8 25.1 Cash & cash equivalents at beginning of year 522.9 497.9 Effect of exchange rate chan
Slide 16: Group Balance Sheet
Group Balance Sheet 31 Mar 2014 31 Mar 2013 $M $M Equity attributable to owners of the parent 1,360.9 1,301.9 Non-controlling interests 29.6 27.3 Total equity 1,390.5 1,329.2 Non-current liabilities 40.4 25.3 1,430.9 1,354.5 Represented by: Non-current assets 842.0 796.1 Cash 535.7 522.9 Other curre
Slide 17: Financial Statistics
Financial Statistics FY1314 FY1213 Variance Basic earnings per share (cents) 23.9 24.5 - 2.6 % Return on average shareholders' funds (%) 20.0 21.1 - 1.1 ppt 31 Mar 14 31 Mar 13 Variance Net asset value per share (cents) 122.0 117.7 + 3.7 % 17
Slide 18: Final Dividend
Final Dividend FY1314 FY1213 Final Dividend (in cents per share) Ordinary 13.0 15.0 Special 5.0 - Total Dividend 25.0 * 22.0 * Inclusive of interim dividend of 7 cents per share paid on 28 November 2013. 18
Slide 19: Operations Review
SIA ENGINEERING COMPANY Operations Review SIA ENGINEERING company SIAENGing=ANG company
Slide 20: Core Business
Core Business Line 34 airports in 7 countries Maintenance Aircraft & 6 hangars in Singapore Component 2 hangars in the Philippines Services Fleet Fleet size of 170 aircraft Management from 12 airlines 20
Slide 21: Line Maintenance
Line Maintenance +18.2% FY13/14 135,366 Flights handled at Changi Airport FY12/13 114,523 12 New Contracts 11 Renewed Contracts Thai AirAsia Malaysia AirAsia 21
Slide 22: Aircraft & Component Services
Aircraft & Component Services SINGAPORE Hangar 1 Hangar 2 Hangar 3 May 1982 Jun 1992 Oct 2001 3 bays: widebody aircraft 2 bays: Airbus aircraft 1 bay: B777 Hangar 4 Hangar 5 Hangar 6 May 2005 Dec 2004 Apr 2010 1-bay: B747-400 PTF capability 1 bay: specialised painting capability 1 bay: A380 & B777-3
Slide 23: Aircraft & Component Services
Aircraft & Component Services PHILIPPINES Hangar 1 July 2009 1 bay: A320 CLARK Hangar 2 Apr 2013 1 bay: narrow-body aircraft Hangar 3 2014 (under construction) 1 bay: widebody aircraft 23
Slide 24: Aircraft & Component Services
Aircraft & Component Services Maintenance checks at Singapore base: FY13/14 FY12/13 ‘D’ checks 37 46 ‘C’ checks 88 72 ‘A’* checks 384 395 * Include ‘A’ checks done at Line Maintenance 15 New Contracts @Singapore Base Maintenance checks at Clark base: Australia FY13/14 FY12/13 ‘C’ checks 29 27 ‘A’ &
Slide 25: Fleet Management
Fleet Management 122 aircraft 26 aircraft 2 aircraft 13 aircraft 7 aircraft FMP fleet: 170 aircraft ONE OF THE WORLD’S LARGEST FLEET MANAGEMENT SERVICE PROVIDERS Singapore Australia Philippines Mandala 25
Slide 26: SIAEC Group: 25 JVs in 9 countries
SIAEC Group: 25 JVs in 9 countries Engine & Engine Part Repair & Component Repair & Overhaul and Line Maintenance & Airframe JVs Overhaul JVs Knowledge-based JVs Aircraft Maintenance SIA Engineering Singapore Aero Engine Eagle Services Asia Fuel Accessory (USA) Inc Singapore Jamco Services Australia
Slide 27: Outlook
Outlook Asian airlines continue to grow, generating demand for MRO services. Aviation industry faces competitive challenges, exerting pressure on MRO rates. Group focusing on initiatives to improve productivity & efficiency, to enhance competitiveness. Performance of Group is expected to remain stab
Slide 28: FY2013/14 Performance Review
FY2013/14 Performance Review
SIA Engineering Company — FY2013/14 Earnings Presentation on 6ix