Sia Engineering Co. Ltd. · SGX:S59
Sia Engineering — H1 FY2006/07 Earnings Presentation
18 slides from Sia Engineering's earnings presentation, Oct 30, 2006
Slide 1: SIA Engineering Company H1 FY2006/07 Analyst Briefing
Performance Snapshots SIA ENGINEERING COMPANY H1 FY2006/ 07 Analyst Briefing 30 October 2006
Slide 2: Financial Review
FINANCIAL REVIEW SIA ENGINEERING COMPANY y,
Slide 3: Summary of 1H FY06/07 Group Results
Summary of 1H FY06/07 Group Results FY06/07 FY05/06 Variance 1H 1H $M $M % Revenue 492.9 463.5 + 6.3 Expenditure 425.1 404.1 + 5.2 Operating profit 67.8 59.4 + 14.1 Share of associated 67.7 52.1 + 29.9 and JV companies’ profits Profit before tax 154.9 120.4 + 28.7 Net profit 138.4 105.6 + 31.1 Net p
Slide 4: 1H FY06/07 Group Revenue Composition
1H FY06/07 Group Revenue Composition FY06/07 FY05/06 Variance 1H 1H $M $M % Labour revenue 331.2 325.8 + 1.7 Material revenue 118.8 110.4 + 7.6 Fleet Management 32.3 15.7 + 105.7 Others 10.6 11.6 - 8.6 Revenue 492.9 463.5 + 6.3 % of non-SIA work 29.2% 22.8% + 6.4 pts
Slide 5: 1H FY06/07 Group Expenditure
1H FY06/07 Group Expenditure FY06/07 FY05/06 Variance 1H 1H $M $M % Staff costs 185.3 179.6 + 3.2 Materials 124.0 115.8 + 7.1 Overheads 115.8 108.7 + 6.5 Expenditure 425.1 404.1 + 5.2
Slide 6: Financial Statistics
Financial Statistics As at As at Variance Sep 06 Mar 06 % Shareholders’ funds 937.3 1,038.8 - 9.8 (S$M) Net asset value per share 88.7 100.2 - 11.4 (cents) Cash position (S$M) 340.8 500.5 - 31.9 1H FY06/07 1H FY05/06 Variance EPS (cents) 13.2 10.3 + 27.9% Return on average 28.0 21.9 + 6.1pts shareho
Slide 7: 1H FY06/07 Proposed Interim Dividend
1H FY06/07 Proposed Interim Dividend $M Tax-Exempt (One-Tier) Interim Dividend: Ordinary 4 .0 cents/share 42.2 Gross dividend yield * 2.3% (Annualised) Payout ratio 30.5% * based on share price of $3.52 as at 29 September 2006
Slide 8: Summary of Q2 FY06/07 Group Results
Summary of Q2 FY06/07 Group Results FY06/07 FY05/06 Variance Q2 Q2 $M $M % Revenue 244.3 240.0 + 1.8 Expenditure 209.6 213.6 - 1.9 Operating profit 34.7 26.4 + 31.4 Share of associated 35.4 24.7 + 43.3 and JV companies’ profits Profit before tax 80.4 58.4 + 37.7 Net profit 72.0 50.4 + 42.9 Net profi
Slide 9: Our Joint Ventures: JV Revenue
OUR J OINT VENTURES J V Revenue 1H 06/07 1H 05/06 Variance $M $M $M % Engine Overhaul Centres 878.7 571.6 +307.1 + 53.7 (ESA & SAESL) Others 308.8 250.1 + 58.7 + 23.5 Total 1,187.5 821.7 +365.8 + 44.5
Slide 10: Our Joint Ventures: Profit Contributions from JV
OUR J OINT VENTURES Profit Contributions from J V 1H 06/07 1H 05/06 Variance $M $M $M % Engine Overhaul Centres 36.7 28.7 + 8.0 +27.9 (ESA & SAESL) Others 31.0 23.4 + 7.6 +32.5 Total 67.7 52.1 +15.6 +29.9
Slide 11: Our Joint Ventures: Total Revenue (1st Half FY06/07)
OUR J OINT VENTURES Total Revenue (1st Half FY06/07) SIA Non-SIA Total $M $M $M Engine Overhaul 283.0 595.7 (68%) 878.7 Centres (ESA & SAESL) Others 33.3 275.5 (89%) 308.8 J V Total 316.3 871.2 (73%) 1,187.5 SIAEC Co 339.7 139.6 (29%) 479.2 Grand Total 656.0 1,010.7 (61%) 1,666.7
Slide 12: Operations Review
OPERATIONS REVIEW SIA ENGINEERING COMPANY y,
Slide 13: Line Maintenance: Secured All New Entrants at Changi Airport
Secured All 5 New Entrants at Changi Airport New Line Maintenance Customers 1. Shanghai Air Cargo 1. 2. Cebu Pacific 2. 3. Air-I ndia Express 3. 4. Far Eastern Air Transport 4. 5. K-Mile Air 5. Market Market share share increased increased to to 85% 85% H1 H1 FY06/ FY06/ 07: 07: 43,877 43,877 flight
Slide 14: Airframe & Component Overhaul: New Contracts Signed
7 New Contracts Signed New Contracts 1. Garuda 5. Biman Bangladesh 2. Qantas 6. Oasis Airlines 3. Air Mauritius 7. Saudi Arabian 4. Evergreen Renewed Contracts 1. J apan Airlines 4. Atlas Air 2. Martinair 5. Fedex 3. Air Canada 6. Dubai Air Wing Airframe & Component Overhaul
Slide 15: Fleet Management Programme
Fastest Growing Business Segment Revenue Doubled to $32M Customers 1. 1. Air Air Pacific Pacific (B747-400) (B747-400) 2. 2. Air Air Atlanta Atlanta (B747-400) (B747-400) 3. 3. SilkAir SilkAir (A319/ (A319/A320) A320) 4. 4. Tiger Tiger Air Air (A320) (A320) 5. 5. Cebu Cebu Pacific Pacific (A319/ (A3
Slide 16: New Projects
J uly 06: Signed MOU with Wadia Group • Line maintenance at 8 airports in I ndia Aug 06: Commenced B747-400 PTF Conversion • 2nd in the world to offer services Aug 06: Restructuring I nitiatives • Optimise manpower utilisation • Reduce cost structure New Projects
Slide 17: Outlook
OUTLOOK Sustained MRO demand Pressure on rates I mplementing productivity improvements to enhance market competitiveness & grow market share v
Slide 18: Thank You
SIA ENGINEERING COMPANY Analyst Briefing 30 October 2006 v Thank You
SIA Engineering Company — H1 FY2006/07 Earnings Presentation on 6ix