Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — FY2018/19 Earnings Presentation
27 slides from Sia Engineering's earnings presentation, May 13, 2019
Slide 1: FY18/19 Results Briefing
FY18/19 Results Briefing ) SIA ENGINEERING COMPANY
Slide 2: FY18/19 Financial Review
FY18/19 Financial Review ) SIA ENGINEERING COMPANY
Slide 3: FY18/19 Financial Highlights
FY18/19 Financial Highlights • The Group recorded a net profit of $160.9 million for FY18/19. • Operating profit at $56.8 million was $22.0 million or 27.9% lower. • Share of profits of associated and joint venture companies increased $4.1 million or 3.7% to $113.9 million. • Share of profits impact
Slide 4: Summary of Group Results FY18/19
Summary of Group Results FY18/19 Group FY18/19 FY17/18 Variance $M $M % Revenue 1,020.9 1,094.9 - 6.8 Expenditure 964.1 1,016.1 - 5.1 Operating profit 56.8 78.8 - 27.9 Share of profits of JVs & Assoc 113.9 109.8 + 3.7 Provision for taxation 18.1 21.5 - 15.8 Net profit 160.9 186.8 - 13.9 The Group po
Slide 5: Summary of Group Results 4Q18/19
Summary of Group Results 4Q18/19 Group 4Q18/19 4Q17/18 Variance $M $M % Revenue 256.0 276.4 - 7.4 Expenditure 236.6 255.2 - 7.3 Operating profit 19.4 21.2 - 8.5 Share of profits of JVs & Assoc 32.3 25.0 + 29.2 Provision for taxation 5.1 6.4 - 20.3 Net profit 49.3 56.2 - 12.3 The Group posted a net p
Slide 6: Group Profit for FY18/19
Group $M Profit for FY18/19 190.0 186.8 180.0 171.8 170.0 -15.0 -10.9 +3.4 160.9 +3.6 160.0 Exclude ACTS’ +4.1 divestment 150.0 -22.0 140.0 Non- Share of operating Group profits of items & Tax operations JV & assoc NCI provision 0.0 FY17/18 FY17/18 FY18/19 (after ACTS’ (before ACTS’ divestment) dive
Slide 7: Joint Venture and Associated Companies FY18/19
Joint Venture and Associated Companies FY18/19 Share of Profit After Tax FY18/19 FY17/18 Variance $M $M % Engine and component Engine centers 76.3 69.3 + 10.1 Component centers 39.1 40.6 - 3.7 115.4 109.9 + 5.0 Airframe and line maintenance (1.5) (0.1) n.m. 113.9 109.8 + 3.7 Contributions from the e
Slide 8: Breakdown of Group Revenue FY18/19
Breakdown of Group Revenue FY18/19 Group Revenue FY18/19 FY17/18 Variance $M $M % Airframe and line maintenance Airframe overhaul and line maintenance 891.2 942.5 - 5.4 Fleet management programme 100.2 124.7 - 19.6 991.4 1,067.2 - 7.1 Engine and component 29.5 27.7 + 6.5 1,020.9 1,094.9 - 6.8 Revenu
Slide 9: Group Expenditure FY18/19
Group Expenditure FY18/19 Group Expenditure FY18/19 FY17/18 Variance $M $M % Staff costs 488.7 494.3 - 1.1 Material costs 145.2 186.5 - 22.1 Subcontract costs 118.3 133.9 - 11.7 Overheads 211.9 201.4 + 5.2 964.1 1,016.1 - 5.1 Expenditure was lower by $52.0M or 5.1%, mainly from lower material and su
Slide 10: Group Operating Profit by Segment FY18/19
Group Operating Profit by Segment FY18/19 Group Operating Profit FY18/19 FY17/18 Variance $M $M % Airframe and line maintenance 59.8 81.9 - 27.0 Engine and component (3.0) (3.1) + 3.2 56.8 78.8 - 27.9 Group’s operating profit in FY18/19 of $56.8M was $22.0M or 27.9% lower. 10
Slide 11: SIA vs Non-SIA Revenue FY18/19
SIA vs Non-SIA Revenue FY18/19 SIA Non-SIA $M $M SIA Engineering (SIAEC) 519.9 352.4 % of non-SIA work 40% Subsidiary companies 69.8 133.3 % of non-SIA work 66% Joint venture & associated companies - Engine and component 834.2 3,455.7 - Airframe and line Maintenance 90.0 40.0 924.2 3,495.7 % of non-
Slide 12: Group Balance Sheet
Group Balance Sheet Mar-19 Mar-18 $M $M Equity attributable to owners 1,528.6 1,483.7 of the parent Non-controlling interests 35.4 31.3 Total equity 1,564.0 1,515.0 Non-current liabilities 35.7 41.5 1,599.7 1,556.5 Represented by: Non-current assets 880.2 899.7 Cash 521.6 499.7 Other current assets
Slide 13: Financial Statistics
Financial Statistics Financial Statistics FY18/19 FY17/18 Variance Return on shareholders' funds (%) 10.7 12.4 - 1.7 ppt Basic earnings per share (cents) 14.38 16.70 - 13.9 % Mar-19 Mar-18 Variance Net asset value per share (cents) 136.6 132.7 + 2.9 % 13
Slide 14: Final Dividend
Final Dividend Proposed Dividend FY18/19 FY17/18 Variance Ordinary (in cents per share) % Interim 3.0 4.0 - 25.0 Final 8.0 9.0 - 11.1 Final dividend to be paid on 8 August 2019 14
Slide 15: FY18/19 Operational Review
FY18/19 Operational Review Y SIA ENGINEERING COMPANY
Slide 16: Core Business
Core Business Line Maintenance ▪ 34 airports in 7 countries Aircraft & Component Services ▪ 6 hangars in Singapore ▪ 3 hangars in Philippines Fleet Management ▪ 82 aircraft from 8 airlines 16
Slide 17: Line Maintenance: Flights handled at Changi Airport
Line Maintenance Flights handled at Changi Airport 4.3% 153,006 146,687 FY 17/18 FY 18/19 17
Slide 18: Line Maintenance
Line Maintenance =) Abarat! EnIAAD New Irways AIRWAYS Fe (oo JUNEYAO AIR Contracts Ge : Wy Swanpone praptyprees SINGAPORE UNITED & AIRLINES AIRLINES 3 2 2 NS ITE XIAMENAIR @ myanmar RMA P FP cebu pacific Renewed =, " a4 Contracts S sneebesn animes BRITISH AIRWAYS > fir fsia a Atlantic ‘“~ Q same TF
Slide 19: Aircraft & Component Services
Aircraft & Component Services 19
Slide 20: Aircraft & Component Services
Aircraft & Component Services Maintenance Checks at Singapore Base Maintenance Checks at Clark Base FY18/19 FY17/18 FY18/19 FY17/18 ‘A’ Checks* 466 455 ‘C’ Checks 71 87 ‘C’ Checks 54 56 * Including ‘A’ checks performed by Line Maintenance at the apron 6 cabin retrofit programs were also completed in
Slide 21: Fleet Management
Fleet Management A320 A320 22 aircraft 777 5 737 aircraft 26 aircraft 747 10 A330 aircraft 19 aircraft 21
Slide 22: Fleet Management
Fleet Management FMP Fleet 82 aircraft 22
Slide 23: 24 JVs Across 7 Countries
24 JVs Across 7 Countries Airframe and Line Maintenance Engine and Component SIA Engineering Singapore Aero Singapore Aero Component SIA Engineering Japan Support Services Eagle Services Asia (USA) Engine Services Aerospace Singapore (SIAEJ) (SASS) (ESA) (SEUS) (SAESL) (CAS) United States 100% Japan
Slide 24: Key Developments
Key Developments Divested 100% stake in Aircraft Maintenance Services Australia Pty Ltd for A$4.5M in cash Rationalising • Gain of approximately S$0.3M line maintenance 49/51 partnership with NokScoot Airlines Co., Ltd for a international line maintenance JV in Thailand (LMI) • Operations at Don Mue
Slide 25: Key Developments
Key Developments Services Agreement with SilkAir for B737 Max aircraft • 12 years + option to renew for 5 years • Expected revenue of $484M over 12-year term Agreement with Thales • In-Flight Entertainment and Connectivity Agreement to maintain Singapore Airlines’ A350 XWB aircraft fitted with Thale
Slide 26: Outlook
Outlook The MRO operating environment remains challenging. Added to that, revenue will be impacted by the unforeseen grounding of customers’ aircraft. Our Transformation journey is gaining traction with some initiatives generating productivity gains and creating capacity for growth. More of such ini
Slide 27: End of Performance Review
End of Performance Review ) SIA ENGINEERING COMPANY
SIA Engineering Company — FY2018/19 Earnings Presentation on 6ix