Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — FY2008/09 Earnings Presentation
24 slides from Sia Engineering's earnings presentation, May 12, 2009
Slide 1: SIA Engineering Company FY 2008/09 Performance Review
SIA ENGINEERING COMPANY FY 2008/ 09 Performance Review 12 May 2009
Slide 2: Financial Review
FINANCIAL REVIEW SIA ENGINEERING COMPAN
Slide 3: Summary of Group Results
Summary of Group Results FY08/09 FY07/08 Variance $M $M % Revenue 1,045.3 1,009.6 + 3.5 Expenditure 932.7 906.7 + 2.9 Operating profit 112.6 102.9 + 9.4 Share of JV & Assoc Cos Profits 173.0 157.8 + 9.6 Profit before tax 300.7 285.5 + 5.3 Net profit 260.6 253.8 + 2.7 Net profit margin (%) 24.9 25.1
Slide 4: Group Revenue By Segment
Group Revenue By Segment FY08/09 FY07/08 Variance $M $M % Airframe & Component Overhaul 562.0 603.1 - 6.8 Line Maintenance 369.9 335.4 + 10.3 Fleet Management 113.4 71.1 + 59.5 1,045.3 1,009.6 + 3.5 Financial Review
Slide 5: SIA vs Non-SIA Revenue
SIA vs Non-SIA Revenue SIA Non-SIA Total $M $M $M SIAEC 671.3 321.6 992.9 % of non-SIA work 32% Subsidiary Cos 43.4 37.2 80.6 % of non-SIA work 46% JV & Associated Cos - Engine Overhaul Centres 769.2 1,433.6 2,202.8 - Others 45.4 596.1 641.5 814.6 2,029.7 2,844.3 % of non-SIA work 71% Combined reven
Slide 6: Group Expenditure
Group Expenditure FY08/09 FY07/08 Variance $M $M % Staff costs 429.5 440.0 - 2.4 Materials 229.9 235.6 - 2.4 Subcontract costs 108.6 82.3 + 32.0 Overheads 164.7 148.8 + 10.7 Expenditure 932.7 906.7 + 2.9 Financial Review
Slide 7: Profit Attribution
Profit Attribution FY08/09 FY07/08 Variance $M $M % Operating Segments Airframe & Component Overhaul 32.1 50.0 - 35.8 Line Maintenance 76.4 42.4 + 80.2 Fleet Management 4.1 10.5 - 61.0 112.6 102.9 + 9.4 JVs and Associated Cos Engine Overhaul 108.4 90.2 + 20.2 Others 64.6 67.6 - 4.4 173.0 157.8 + 9.6
Slide 8: Profit Contribution to SIAEC Group Profit
Profit Contribution to SIAEC Group Profit $'M % of PBT $200.0 62% $ 184M $180.0 $ 172M 52% $ 155M $160.0 $140.0 42% $ 117M $120.0 32% $100.0 $ 81M 22% $80.0 $ 72M $60.0 $ 50M 12% $ 42M $40.0 2% $20.0 $ 4M $0.0 -8% 2 0 0 0 -0 1 2 0 0 1-0 2 2 0 0 2 -0 3 2 0 0 3 -0 4 2 0 0 4 -0 5 2 0 0 5-0 6 2 0 0 6 -0
Slide 9: Financial Statistics
Financial Statistics As at As at Variance Mar 09 Mar 08 % Shareholders' equity ($M) 1,228.9 1,125.3 + 9.2 Net asset value per share (cents) 114.0 104.7 + 8.9 Cash position (Grp) ($M) 372.5 437.3 - 14.8 FY08/09 FY07/08 EPS (cents) 24.2 23.7 + 2.1 % Return on average shareholders' funds (%) 22.1 23.9
Slide 10: Summary of 4Q FY08/09 Group Results
Summary of 4Q FY08/09 Group Results $M $M % Revenue 245.8 225.1 + 9.2 Expenditure 219.1 204.6 + 7.1 Operating profit 26.7 20.5 + 30.2 Share of JV & Assoc Cos Profits 47.8 36.8 + 29.9 Profit before tax 76.9 63.8 + 20.5 Net profit 65.5 55.2 + 18.7 Net profit margin (%) 26.6 24.5 + 2.1 pts Financial Re
Slide 11: Group Performance – Quarterly Trend
Group Performance – Quarterly Trend S$M 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 1QF Y0809 2QF Y0809 3QF Y0809 4QF Y0809 Operating profit Financial Quarter Grp PAT Financial Review
Slide 12: Operations Review
OPERATIONS REVIEW SIA ENGINEERING COMPAN
Slide 13: A Challenging Environment in FY09/10
A Challenging Environment in FY 09/ 10 Since Q3, Group profit, mitigated by Budget 2009 initiatives, has declined due to sharp downturn in aviation business With the outlook for FY2009/10 remaining weak and likely to deteriorate further, the Group's performance will be impacted Outlook
Slide 14: Our Responses: Business Key Initiatives in FY08/09
Our Responses BUSINESS Expand FMP customer base Entry into Middle East market Establish heavy maintenance base in lower cost locality – Philippines Line maintenance in Vietnam Line maintenance in LAX Diversifying into new products Hangar 6 equipped to handle A380 & B777 Intensify marketing efforts t
Slide 15: FMP Fleet Grows to 175 Aircraft
FMP Fleet Grows to 175 Aircraft Secured 4 FMP Contracts worth more than $600M 3 New Contracts 1 Renewed Contract Expand FMP Customer Base
Slide 16: Forging New Markets: Entry into Middle East Market
Forging New Markets 26 Mar 09 Signed FMP contract with Gulf Air 3-year contract covers Gulf Air’s current Airbus fleet of 29 aircraft and 35 Airbus aircraft to be delivered in the future 17 Apr 09 Expanded scope of Gulf Air FMP contract Extended contract covers additional aircraft and scope of servi
Slide 17: Geographical Expansion: Growing Global Footprint
Geographical Expansion 4 Apr 08 Established first overseas heavy maintenance facility Signed J VA with Cebu Pacific Air to set up heavy maintenance facility in the Philippines 8 Nov 08 Ground breaking of SIAEC hangar in Clark, Philippines 24 Feb 09 Established line maintenance foothold in Vietnam Si
Slide 18: First-Mover Advantage: Diversifying into New Products
First-Mover Advantage A380 maintenance B747-400 VVIP (1st in the world) Cabin Modification A330 Maintenance A340 Cabin Modification Diversifying into New Products
Slide 19: Airframe Maintenance: Intensifying Marketing Efforts
Airframe Maintenance 17 New Contracts worth $121M …in addition to work performed for 20 existing customer airlines Intensifying Marketing Efforts
Slide 20: Line Maintenance: Intensifying Marketing Efforts
Line Maintenance 10 New Contracts 7 Renewed Contracts Intensifying Marketing Efforts
Slide 21: Our Responses: Cost Management
Our Responses COST MANAGEMENT Release of surplus contract staff 2008: hiring freeze Apr 09: voluntary no-pay leave scheme May 09: management wage freeze Re-training of staff with SPUR Re-trained surplus staff redeployed to units with growth potential / overseas operations Key Initiatives in FY08/09
Slide 22: Our Responses: Initiatives for the Long Term
Our Responses I nitiatives focused on: � Strengthening fundamentals � Enhancing competitiveness …..for the long term
Slide 23: Proposed Final Dividend
Proposed Final Dividend FY08/09 FY07/08 Final Dividend (Tax Exempt One-Tier) Ordinary (cents per share) 11.0 16.0 Total Dividend (Tax Exempt One-Tier) Ordinary (cents per share) 16.0 20.0 Gross dividend yield (%) 8.6 * 5.1 Payout ratio (%) 66.2 * 84.8 * Inclusive of tax-exempt (one-tier) interim div
Slide 24: Thank You
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SIA Engineering Company — FY2008/09 Earnings Presentation on 6ix