Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — FY1617 Earnings Presentation
31 slides from Sia Engineering's earnings presentation, May 15, 2017
Slide 1: FY1617 Performance Review
SIA ENGINEERING COMPANY FY1617 Performance Review 1
Slide 2: FY1617 Financial Review
SIA ENGINEERING COMPANY FY1617 Financial Review 2
Slide 3: FY1617 Financial Highlights
FY1617 Financial Highlights • The Group recorded a profit attributable to owners of the parent of $332.4M, an increase of $155.8M • In the year, the Group made a $141.6M gain from divestment of HAESL and received a special dividend of $36.4M from HAESL. Staff costs increased with a provision for pro
Slide 4: Summary of Group Results
Summary of Group Results FY1617 FY1617 FY1516 Variance $M $M % Revenue 1,104.1 1,112.7 - 0.8 Expenditure 1,032.1 1,008.3 + 2.4 Operating profit 72.0 104.4 - 31.0 Surplus on partial disposal of an assoc company 2.3 2.8 - 17.9 Loss on liquidation of an assoc company - (4.3) n.m. Surplus on disposal of
Slide 5: Summary of Group Results 4Q FY1617
Summary of Group Results 4Q FY1617 4Q FY1617 4Q FY1516 Variance $M $M % Revenue 295.4 294.2 + 0.4 Expenditure 271.5 266.7 + 1.8 Operating profit 23.9 27.5 - 13.1 Dividend income from non-current asset held for sale - 1.6 n.m. Share of results of Assoc/JVs, net of tax 27.0 18.3 + 47.5 Profit before t
Slide 6: Group Profit for FY1617
Group Profit for FY1617 350.0 +178.0 332.4 300.0 +155.8 Impact on 200.0 Op profit 176.6 (net of tax) 172.0 S$M -11.1 +2.3 +5.0 -0.8 150.0 -17.6 Share of Non- Group profits of JV operating Gain on operations & assoc items & NCI Tax provision Divestment 0.0 FY1516 FY1617 (before FY1617 (after divestme
Slide 7: Joint Venture and Associated Companies
Joint Venture and Associated Companies FY1617 FY1617 FY1516 Variance $M $M % Share of profits after tax Repair and Overhaul - Engine Repair & Overhaul Centres 53.7 50.7 + 5.9 - Others 39.5 40.6 - 2.7 93.2 91.3 + 2.1 Line Maintenance 3.3 2.9 + 13.8 96.5 94.2 + 2.4 Contributions from the engine repair
Slide 8: Breakdown of Group Revenue
Breakdown of Group Revenue FY1617 FY1617 FY1516 Variance $M $M % Airframe & Component Overhaul 443.6 450.9 - 1.6 Fleet Management 147.5 201.7 - 26.9 Repair & Overhaul 591.1 652.6 - 9.4 Line Maintenance 513.0 460.1 + 11.5 1,104.1 1,112.7 - 0.8 Revenue decreased by $8.6M or 0.8%. The decrease in fleet
Slide 9: Group Expenditure
Group Expenditure FY1617 FY1617 FY1516 Variance $M $M % Staff costs 512.5 462.9 + 10.7 Materials 187.6 188.8 - 0.6 Subcontract costs 138.4 161.3 - 14.2 Overheads 193.6 195.3 - 0.9 Expenditure 1,032.1 1,008.3 + 2.4 Expenditure increased by 2.4%, mainly due to a 10.7% increase in staff costs, offset i
Slide 10: Group Operating Profit by Segment
Group Operating Profit by Segment FY1617 Before Before After divestment divestment divestment of HAESL vs of HAESL of HAESL FY1516 $M $M $M % FY1617 FY1617 FY1516 Variance Repair & Overhaul (10.0) (22.4) (3.4) -194.1 Line Maintenance 103.3 94.4 107.8 -4.2 93.3 72.0 104.4 -10.6 10
Slide 11: SIA vs Non-SIA Revenue
SIA vs Non-SIA Revenue FY1617 SIA Non-SIA Total $M $M $M SIAEC 661.9 327.5 989.4 % of non-SIA work 33% Subsidiary Companies 63.2 101.8 165.0 % of non-SIA work 62% JV & Associated Companies - Repair & Overhaul 750.1 2,588.9 3,339.0 - Line Maintenance 15.0 32.1 47.1 765.1 2,621.0 3,386.1 % of non-SIA
Slide 12: Group Balance Sheet
Group Balance Sheet 31 Mar 2017 31 Mar 2016 $M $M Equity attributable to owners of the parent 1,554.0 1,485.5 Non-controlling interests 34.0 26.4 Total equity 1,588.0 1,511.9 Non-current liabilities 51.0 54.0 1,639.0 1,565.9 Represented by: Non-current assets 938.9 895.8 Cash 601.7 393.9 Non-current
Slide 13: Financial Statistics
Financial Statistics Before Before divestment divestment of After divestment of HAESL vs HAESL of HAESL FY1516 FY1617 FY1617 FY1516 Variance Basic earnings per share (cents) 15.33 29.63 15.74 -2.6 % Return on average shareholders' funds (%) 11.4 21.9 12.6 -1.2 ppt Mar17 Mar17 Mar16 Variance Net asse
Slide 14: Dividend
Dividend FY1617 FY1516 (in cents per share) Interim 4.0 6.0 Final 9.0 8.0 * Special 5.0 - Total 18.0 14.0 Final dividend to be paid on 8 August 2017 14
Slide 15: Operational Review
SIA ENGINEERING COMPANY FY1617 Operational Review 15
Slide 16: Core Business
Core Business Aircraft & Component Line Maintenance Fleet Management Services 36 airports in 7 countries 6 hangars in Singapore 129 aircraft from 9 airlines 3 hangars in Philippines 16
Slide 17: Line Maintenance
Line Maintenance Flights handled at Changi Airport 7 New Contracts 2.6% 141,454 AsiaCargo Express 137,867 20 Renewed Contracts Thai Indonesia AirAsia AirAsia FY15/16 FY16/17 17
Slide 18: Aircraft & Component Services
Aircraft & Component Services 11 New/ Renewed Contracts at Singapore Base Australia DVB BANK Maintenance checks at Singapore base: Maintenance checks at Clark base: FY16/17 FY15/16 FY16/17 FY15/16 ‘A’ checks 427 373 ‘C’ checks 35 25 ‘C’ checks 75 74 ‘D’ checks 14 16 18
Slide 19: Fleet Management
Fleet Management A320 A320 63 aircraft 26 aircraft 21 aircraft 11 aircraft 8 aircraft As at 31 Mar 2017 FMP fleet: 129 aircraft Taiwan 19
Slide 20: SIA Engineering Company
20 SIA ENGINEERING COMPANY y,
Slide 21: Portfolio of Subsidiaries & Joint Ventures
Portfolio of Subsidiaries & Joint Ventures Line & Heavy Maintenance Engine & Engine Components Aircraft Component & Services Aircraft Maintenance SIA Engineering Fuel Accessory Service Singapore Aero Engine Eagle Services Asia Jamco Singapore Services Australia (USA) Technologies Services (SAESL) (E
Slide 22: Key Developments in FY1617: Formation of Heavy Maintenance JV
Key Developments in FY1617 Formation of Heavy Maintenance JV � Incorporation of Heavy Maintenance Singapore Services Pte Ltd � SIAEC 65%, Airbus 35% � Airframe maintenance, cabin upgrade and modification services for A380, A350 and A330 in Asia-Pacific and beyond � Centre of Excellence for A380 and
Slide 23: Key Developments in FY1617: Joint Venture with Moog
Key Developments in FY1617 Joint Venture with Moog � SIAEC 49%, Moog 51% � MRO services for Moog’s components on flight control systems of new-generation aircraft, including Boeing 787 and Airbus A350 � Moog’s Centre of Excellence in Asia Pacific 23
Slide 24: Key Developments in FY1617: MOU with Stratasys
Key Developments in FY1617 MOU with Stratasys � Strategic partnership specialising in Additive Manufacturing to accelerate the adoption of 3D printed parts for commercial aviation � JV to be majority-owned by SIAEC � Strengthens SIAEC’s comprehensive suite of MRO solutions and enhance our support to
Slide 25: Key Developments in FY1617: CFM LEAP Engine Support Provider
Key Developments in FY1617 SIAEC appointed as On-site Support Provider for CFM LEAP-1A and -1B Engines in Asia Pacific � The LEAP-1A is one of two engine options for the Airbus A320neo family, while the LEAP-1B is the exclusive engine for the Boeing 737 MAX � Adds to the growing capabilities of SIAE
Slide 26: Key Developments in FY1617: Amalgamation of SAESL & IECO
Key Developments in FY1617 Amalgamation of SAESL & IECO � SAESL will be able to generate greater operational efficiencies, economies of scale & synergies � SAESL positioned to compete more effectively for the global engine & component repair business � Strategy to streamline & rationalise engine com
Slide 27: Key Developments in FY1617: Integration of CAS & IAT-A
Key Developments in FY1617 Integration of CAS & IAT-A � Strategy to streamline & rationalise engine component JVs � Improve allocation of resources & streamlining of business processes � Enhance operational efficiencies, economies of scale & synergies 27
Slide 28: Key Developments in FY1617: Tigerair Australia Agreement
Key Developments in FY1617 Australia SIAEC signs Maintenance Agreement with Tigerair Australia � Heavy maintenance services for A320-200 � Services will be performed at facilities of SIAEC in Singapore and SIA Engineering (Philippines) Corporation in Clark � 2-year term, with option to renew for 1 y
Slide 29: Key Developments in FY1617: $250 Million SIA Cargo Services Agreement
Key Developments in FY1617 SIAEC signs $250 million Services Agreement with SIA Cargo � Renewal of current Services Agreement � 3-year term, with options to renew for 3 years and a further 2 years � Covers MRO services 29
Slide 30: Outlook
Outlook In spite of global uncertainties and challenges in the MRO sector from excess capacity and aggressive pricing, there remain growth opportunities. Continue to invest in strategic partnerships and advancing innovations, and maintain vigilance on costs. Initiatives will strengthen the Group’s c
Slide 31: FY1617 Performance Review
SIA ENGINEERING COMPANY FY1617 Performance Review 31
SIA Engineering Company — FY1617 Earnings Presentation on 6ix