Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — 1H FY2019/20 Earnings Presentation
27 slides from Sia Engineering's earnings presentation, Nov 4, 2019
Slide 1: 1H FY2019/20 Results Briefing
1H FY2019/20 Results Briefing 4 November 2019
Slide 2: 1H FY19/20 Financial Review
1H FY19/20 Financial Review 2
Slide 3: 1H19/20 Financial Highlights
1H19/20 Financial Highlights • The Group recorded a net profit of $87.6 million for 1H19/20. • Operating profit at $37.3 million was $15.8 million or 73.5% higher. • Share of profits of associated and joint venture companies decreased $9.0 million or 14.4% to $53.4 million. 3
Slide 4: Summary of Group Results 1H19/20
Summary of Group Results 1H19/20 Group 1H19/20 1H18/19 Variance $M $M % Revenue 512.7 509.0 + 0.7 Expenditure 475.4 487.5 - 2.5 Operating profit 37.3 21.5 + 73.5 Share of profits of JVs & Assoc 53.4 62.4 - 14.4 Provision for taxation (10.0) (8.4) - 19.0 Net profit 87.6 78.5 + 11.6 4
Slide 5: Summary of Group Results 2Q19/20
Summary of Group Results 2Q19/20 Group 2Q19/20 2Q18/19 Variance 1Q19/20 Variance Y-o-Y Q-o-Q $M $M % $M % Revenue 254.6 251.3 + 1.3 258.1 - 1.4 Expenditure 235.0 240.0 - 2.1 240.4 - 2.2 Operating profit 19.6 11.3 + 73.5 17.7 + 10.7 Share of profits of JVs & Assoc 27.4 30.0 - 8.7 26.0 + 5.4 Provision
Slide 6: Group Profit for 1H19/20
Group Profit for 1H19/20 S$M 100.0 +16.2 -0.4 -9.0 +3.9 -1.6 90.0 87.6 + 9.1 80.0 78.5 70.0 Share of Non- Group Exchange profits of operating Tax operations differences JV & assoc items & NCI provision 0.0 1H18/19 1H19/20 6
Slide 7: Breakdown of Group Revenue 1H19/20
Breakdown of Group Revenue 1H19/20 Group Revenue 1H19/20 1H18/19 Variance $M $M % Airframe and line maintenance Airframe overhaul and line maintenance 456.4 442.6 + 3.1 Fleet management programme 43.9 50.8 - 13.6 500.3 493.4 + 1.4 Engine and component 12.4 15.6 - 20.5 512.7 509.0 + 0.7 Revenue incre
Slide 8: Group Expenditure 1H19/20
Group Expenditure 1H19/20 Group Expenditure 1H19/20 1H18/19 Variance $M $M % Staff costs 248.9 247.5 + 0.6 Material costs 69.2 74.8 - 7.5 Subcontract costs 55.2 61.4 - 10.1 Overheads 102.1 103.8 - 1.6 475.4 487.5 -2.5 Expenditure was lower by $12.1M or 2.5%, mainly from lower subcontract and materia
Slide 9: Group Operating Profit 1H19/20
Group Operating Profit 1H19/20 Group Operating Profit 1H19/20 1H18/19 Variance $M $M % Airframe and line maintenance 39.4 22.6 + 74.3 Engine and component (2.1) (1.1) - 90.9 37.3 21.5 + 73.5 Group’s operating profit in 1H19/20 of $37.3M was $15.8M or 73.5% higher. 9
Slide 10: Joint Venture and Associated Companies 1H19/20
Joint Venture and Associated Companies 1H19/20 Share of Profit After Tax 1H19/20 1H18/19 Variance $M $M % Engine and component Engine centers 35.7 42.8 - 16.6 Component centers 19.4 19.3 + 0.5 55.1 62.1 - 11.3 Airframe and line maintenance (1.7) 0.3 n.m. 53.4 62.4 - 14.4 Contributions from the engin
Slide 11: SIA vs Non-SIA Revenue 1H19/20
SIA vs Non-SIA Revenue 1H19/20 SIA Non-SIA $M $M SIA Engineering (SIAEC) 272.4 171.4 % of non-SIA work 39% Subsidiary companies 34.0 66.5 % of non-SIA work 66% Joint venture & associated companies - Engine and component 648.9 1,869.5 - Airframe and line maintenance 38.5 22.3 687.4 1,891.8 % of non-S
Slide 12: Group Balance Sheet
Group Balance Sheet Sep-19 Mar-19 $M $M Equity attributable to owners of the parent 1,539.1 1,528.6 Non-controlling interests 34.0 35.4 Total equity 1,573.1 1,564.0 Non-current liabilities 123.2 35.7 1,696.3 1,599.7 Represented by: Non-current assets 998.3 880.2 Cash 503.5 521.6 Other current assets
Slide 13: Financial Statistics
Financial Statistics Financial Statistics 1H19/20 1H18/19 Variance Return on shareholders' funds (%) (MAA) 11.2 13.0 - 1.8 ppt Basic earnings per share (cents) 7.82 7.02 + 11.4 % Sep-19 Mar-19 Variance Net asset value per share (cents) 137.4 136.6 + 0.6 % 13
Slide 14: Interim Dividend
Interim Dividend Interim Dividend 1H19/20 1H18/19 Variance % Ordinary 3.0 3.0 - (in cents per share) Interim dividend to be paid on 22 November 2019 14
Slide 15: 1H FY19/20 Operational Review
1H FY19/20 Operational Review 15
Slide 16: Core Business
Core Business Line Maintenance ▪ 35 airports in 7 countries Aircraft & Component Services ▪ 6 hangars in Singapore ▪ 3 hangars in Philippines Fleet Management ▪ 75 aircraft from 6 airlines 16
Slide 17: Core Business
Core Business Line Maintenance Aircraft & Component Services Fleet Management Flights handled at Changi Airport Maintenance Checks at Singapore Base A320 A320 1HFY19/20 1HFY18/19 23 aircraft 2.7% ‘A’ Checks* 241 223 737 77,797 ‘C’ Checks 37 31 23 aircraft * Including ‘A’ checks performed by Line Mai
Slide 18: Company Initiatives
Company Initiatives Strategic Partnerships 2016 2017 2018 2019 2020 2021 Investing for the Future Innovation and Technology Transforming for the Future Transformation 18
Slide 19: Strategic Partnerships - JV Portfolio
Strategic Partnerships - JV Portfolio Airframe and Line Maintenance Engine and Component SIA Engineering Singapore Aero Support Services Singapore Aero Engine Eagle Services Asia Component Aerospace (USA) SIA Engineering Japan (SIAEJ) (SASS) Services (SAESL) (ESA) Singapore (CAS) (SEUS) United State
Slide 20: Strengthening our JV Portfolio
Strengthening our JV Portfolio Incorporated Line Maintenance Partnership (Thailand) • Line Maintenance JV with NokScoot incorporated on 10 July 2019 • Shareholding: 51% by NokScoot, 49% by SIAEC • Target to commence operations in 2H FY19/20 in Dong Mueang International Airport Investments in New Cap
Slide 21: Innovation and Technology
Innovation and Technology The Innovation & Technology Group was established in 2016 to spearhead innovation drive with a commitment to invest up to $50 million over 5 years Developed an Operations & Technology Capability Roadmap (OTCR) in 2018 Digital Collaboration Machine Vision • Improve informati
Slide 22: Innovation and Technology
Innovation and Technology People are at the Core of Innovation - “Made in SIAEC” ideas showcased at Innovation Week 2019 Driving simulator Brakes heat extraction system Fan cowl jig Foldable radome transporter VR based on actual airport A more efficient and cost Reduce storage footprint Reduce stora
Slide 23: Innovation and Technology
Innovation and Technology ENHANCING SAFETY AND OPERATIONS CHANGI AIRPORT ANNUAL SAFETY AWARDS Recognition for staff from the airport community who have contributed towards improving airport safety • FY17/18: • FY18/19: - Gold award for our Aircraft - Best Safety Exhibition Partner award Towing Simul
Slide 24: Transformation
24 Transformation SIA ENGINEERING comPAny
Slide 25: Transformation
Transformation Process changes are brought about by Operational Financial the implemented improvement improvement initiatives 25
Slide 26: Outlook
Outlook Our Transformation efforts are translating into improvements in our operating performance through reduced costs and better manpower utilization. In addition, our digital initiatives are gaining traction Company-wide. These efforts better position us to meet the ongoing challenges of an uncer
Slide 27: End of Performance Review
End of Performance Review
SIA Engineering Company — 1H FY2019/20 Earnings Presentation on 6ix