Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — FY17/18 Earnings Presentation
26 slides from Sia Engineering's earnings presentation, May 16, 2018
Slide 1: SIA Engineering Company FY17/18 Performance Review
SIA SIAENGINEERING ENGINEERINGCOMPANY COMPANY 1st Half FY17/18 FY17/18 Performance PerformanceReview Review 1
Slide 2: FY17/18 Financial Review
SIA ENGINEERING COMPANY FY17/18 Financial Review 2
Slide 3: FY17/18 Financial Highlights
FY17/18 Financial Highlights • The Group posted a net profit of $184.1M for FY17/18. • Compared to FY16/17 which included the impact of HAESL divestment*, net profit was $148.3M or 44.6% lower. Excluding the impact of divestment, profit was $12.1M or 7.0% higher. • Net profit included a $14.3M gain
Slide 4: Summary of Group Results
Summary of Group Results FY17/18 FY17/18 FY16/17 Variance $M $M % Revenue 1,094.9 1,104.1 - 0.8 Expenditure 1,018.5 1,032.1 - 1.3 Operating profit 76.4 72.0 + 6.1 Surplus on disposal of non-current asset - 141.6 - 100.0 held for sale Dividend income from non-current asset - 39.5 - 100.0 held for sal
Slide 5: Summary of Group Results (4Q17/18)
Summary of Group Results 4Q17/18 4Q17/18 4Q16/17 Variance $M $M % Revenue 276.4 295.4 - 6.4 Expenditure 255.8 271.5 - 5.8 Operating profit 20.6 23.9 - 13.8 Surplus on disposal of an assoc company 14.3 - n.m. Share of results of Assoc/JVs, net of tax 25.0 27.0 - 7.4 Profit before tax 61.9 51.8 + 19.5
Slide 6: Group Profit for FY17/18
Group Profit for FY17/18 340.0 332.4 S$M 190.0 +15.2 +0.5 184.1 180.0 +12.1 +17.6 172.0 -4.9 +13.3 170.0 +17.6 -12.0 160.0 -178.0 Exclude Share of Non- 150.0 Exclude impact on profits of operating gain on op profit Group Exchange JV & items & Tax divestment (net of tax) operations difference assoc N
Slide 7: Joint Venture and Associated Companies
Joint Venture and Associated Companies FY17/18 FY17/18 FY16/17 Variance $M $M % Share of profits after tax Engine and Component - Engine Centres 69.3 53.7 + 29.1 - Component Centres 40.6 41.9 - 3.1 109.9 95.6 + 15.0 Airframe and Line Maintenance (0.1) 0.9 n.m. 109.8 96.5 + 13.8 Contributions from th
Slide 8: Breakdown of Group Revenue
Breakdown of Group Revenue FY17/18 $M $M % Airframe Overhaul and Line Maintenance 942.5 933.1 + 1.0 Fleet Management 124.7 147.5 - 15.5 1,067.2 1,080.6 - 1.2 Engine and Component 27.7 23.5 + 17.9 1,094.9 1,104.1 - 0.8 Revenue decreased by $9.2M or 0.8% , mainly due to lower fleet management revenue.
Slide 9: Group Expenditure
Group Expenditure FY17/18 FY17/18 FY16/17 Variance $M $M % Staff costs 494.3 512.5 - 3.6 Material costs 186.5 187.6 - 0.6 Subcontract costs 133.9 138.4 - 3.3 Overheads 203.8 193.6 + 5.3 Expenditure 1,018.5 1,032.1 - 1.3 Expenditure was lower by 1.3%, with decrease in staff and subcontract costs part
Slide 10: Group Operating Profit by Segment
Group Operating Profit by Segment FY17/18 FY17/18 vs FY17/18 FY16/17 FY16/17 FY16/17 (Before (After (Before divestment divestment divestment of HAESL) of HAESL) of HAESL) $M $M $M % Airframe and Line Maintenance 79.5 94.9 73.6 -16.2 Engine and Component (3.1) (1.6) (1.6) -93.8 76.4 93.3 72.0 -18.1 G
Slide 11: SIA vs Non-SIA Revenue
SIA vs Non-SIA Revenue FY17/18 SIA Non-SIA Total $M $M $M SIAEC 596.0 365.8 961.8 % of non-SIA work 38% Subsidiary Cos 71.6 115.2 186.8 % of non-SIA work 62% JV & Associated Cos - Engine and Component 1,025.6 2,836.2 3,861.8 - Airframe and Line Maintenance 33.7 33.6 67.3 1,059.3 2,869.8 3,929.1 % of
Slide 12: Group Balance Sheet
Group Balance Sheet 31 Mar 2018 31 Mar 2017 $M $M Equity attributable to owners of the parent 1,495.9 1,554.0 Non-controllling interests 31.3 34.0 Total equity 1,527.2 1,588.0 Non-current liabilities 43.8 51.0 1,571.0 1,639.0 Represented by: Non-current assets 913.1 938.9 Cash 499.7 601.7 Other curr
Slide 13: Financial Statistics
Financial Statistics FY17/18 FY16/17 FY16/17 FY17/18 vs (Before (After FY16/17 divestment of divestment (Before HAESL) of HAESL) divestment of HAESL) Financial Statistics Return on shareholders' funds (%) 12.1 11.4 21.9 + 0.7 ppt Basic earnings per share (cents) 16.45 15.33 29.63 + 7.3 % Mar 18 vs M
Slide 14: Dividend
Dividend FY17/18 FY16/17 (in cents per share) Interim 4.0 4.0 Final 9.0 9.0 * Special - 5.0 Total 13.0 18.0 Final dividend to be paid on 7 August 2018 14
Slide 15: FY17/18 Operational Review
SIA ENGINEERING COMPANY FY17/18 Operational Review 15
Slide 16: Core Business
Core Business Line Maintenance 39 airports in 8 countries Aircraft & Component Services 6 hangars in Singapore 3 hangars in Philippines Fleet Management 89 aircraft from 8 airlines 16
Slide 17: Line Maintenance
Line Maintenance Flights handled at Changi Airport 4 New Contracts 3.7% 146,687 141,454 8 Renewed Contracts FY16/17 FY17/18 17
Slide 18: Aircraft & Component Services
Aircraft & Component Services 10 New/ Renewed Contracts at Singapore Base Australia Maintenance checks at Singapore base Maintenance checks at Clark base FY17/18 FY16/17 FY17/18 FY16/17 ‘A’ checks 455* 427 ‘C’ checks 56 35 ‘C’ checks 87 89 18 * Including ‘A’ checks performed by Line Maintenance at t
Slide 19: Fleet Management
Fleet Management A320 24 aircraft 737 24 aircraft A330 22 aircraft 777 9 aircraft 747 10 aircraft FMP fleet: 89 aircraft 19
Slide 20: 25 JVs Across 8 Countries
25 JVs Across 8 Countries Airframe and Line Maintenance Engine and Component Heavy SIA Engineering Boeing Asia Singapore Aero Eagle Services Asian Surface Maintenance (Philippines) Pacific Aviation Engine Services Asia Technologies Singapore Services Services Aircraft Aviation Pan Asia Pacific Compo
Slide 21: Key Developments
Key Developments Services Agreement with SilkAir • 37 Boeing 737 MAX aircraft • 12 yearterm with option to renew for 5 years Maintenance Agreement with Thales • InFlight Entertainment and Connectivity Agreement to maintain Singapore Airlines’ A350 XWB aircraft fitted with Thales’ AVANT IFE system
Slide 22: Key Developments
Key Developments MOUs to collaborate in Data Analytics • Collaborate with CaseBank Technologies on research, development and commercialisation of advanced diagnostic software • Collaborate with Safran Analytics on research and development of software for predictive maintenance Analytics 22
Slide 23: Key Developments
Key Developments New Shareholder in Line Maintenance JV • Hong Kong Airlines is new shareholder of our line maintenance JV in Hong Kong, Pan Asia Pacific Aviation Services Non-binding LOI with Cebu Air to expand MRO Services in the Philippines • Two existing JVs in the Philippines with Cebu Air • Ex
Slide 24: Key Developments
Key Developments Joint Venture Agreement with GE Aviation to form Engine Overhaul JV • SIAEC 49%, GE Aviation 51% • Full range of engine MRO services for the GE90 and GE9X engines Joint Venture Agreement with Stratasys to form Additive Manufacturing JV • SIAEC 60%, Stratasys 40% • Leverage additive
Slide 25: Outlook
Outlook • To strengthen our position as a leading MRO, the Company has embarked on a transformation journey to enhance productivity, streamline processes and increase competitiveness. • Continue to invest in innovation and technology to stay at the forefront of the industry. • Our portfolio of JVs f
Slide 26: SIA Engineering Company FY17/18 Performance Review
SIA ENGINEERING COMPANY FY17/18 Performance Review 26
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