SIA Engineering : announces 1st Quarter Results for the Financial Period ended June 2014

25th July 2014

SIA ENGINEERING POSTS GROUP PROFIT OF $53.5M FOR 1st QUARTER 2014-15

HIGHLIGHTS OF THE GROUP'S PERFORMANCE

1st Quarter

joint venture companies, net of tax

• Profit attributable to owners of the parent 53.5 69.0 - 22.5

• Basic earnings per share 4.79 cts 6.22 cts - 23.0

GROUP EARNINGS

SIAEC Group posted a profit attributable to owners of the parent of $53.5 million for the first quarter ended 30 June 2014.

Revenue increased $4.7 million or 1.6%, primarily due to higher fleet management revenue, offset by a reduction in airframe and component overhaul revenue. The lower airframe and component overhaul revenue was caused by fewer than planned heavy checks. Expenditure increased at a higher rate of

4.5% mainly due to a higher subcontract work content. The resulting operating profit for the quarter was $20.7 million, $7.0 million lower than the same quarter last year.

Share of profits of associated and joint venture companies was $30.6 million, a drop of $12.4 million or 28.8% from a year ago. This was mainly due to a $11.6 million or 37.8% decrease in contribution from the engine repair and overhaul centers.

Basic earnings per share was 4.79 cents for the first quarter of FY2014-15.

Note: The SIAEC Group's unaudited financial results for the first quarter ended 30 June 2014 were announced on 25 July
2014. A summary of the financial statistics is shown in Annex A. (All monetary figures are in Singapore Dollars. The
Group comprises the Company and its subsidiary, joint venture and associated companies.)

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GROUP FINANCIAL POSITION

As at 30 June 2014, equity attributable to owners of the parent amounted to $1,419.5 million,

$58.6 million or 4.3% higher than at 31 March 2014.

Total assets increased by $75.6 million or 4.4% to $1,782.7 million. Net asset value per share of

126.9 cents was 4.9 cents or 4.0% higher than at 31 March 2014.

The cash balance of the Group as at 30 June 2014 was $605.6 million, an increase of $69.9 million or

13.0% compared to 31 March 2014.

OUTLOOK

The outlook for the SIAEC Group has become more challenging with the decline in heavy checks and reduction in engine shop visits.

Rising business costs will exert increasing pressure on margins. Efforts to manage costs and to strengthen our competitiveness across core businesses remain a priority.

The Group will continue to pursue collaborations with strategic partners, such as the recently announced partnership with Boeing, which will position us well to take advantage of long-term growth opportunities in the region.

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(For the complete first quarter 2014-15 financial statements, please refer to our SGXNET Filing or the Investor

Relations page of our website at www.siaec.com.sg).

For more information, please contact:

Chia Peck Yong

Senior Manager Public Affairs SIA Engineering Company Tel: (65) 6541-5134

Fax: (65) 6546-0679

Mobile: 9863-0982

E-mail: peckyong_chia@singaporeair.com.sg

Company Registration No: 198201025C

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Annex A

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GROUP FINANCIAL STATISTICS

1st Quarter 1st Quarter

2014-15 2013-14 Financial Results ($ million)

Total revenue 294.1 289.4

Total expenditure 273.4 261.7
Operating profit 20.7 27.7
Non-operating items 6.0 0.7
Dividend income from long term investment 2.3 4.6
Share of profits of associated companies, net of tax 14.3 16.0

Share of profits of joint venture companies, net of tax 16.3 27.0
Profit before taxation 59.6 76.0
Profit attributable to owners of the parent 53.5 69.0
Per Share Data
Earnings before tax (cents) 5.34 6.85
Earnings after tax (cents) - basic R1 4.79 6.22
- diluted R2 4.76 6.16
As at As at

30 Jun 2014 31 Mar 2014

Financial Position ($ million)
Share capital 400.1 387.3
Reserves
Share-based compensation reserve 21.8 23.9
Foreign currency translation reserve (132.5) (127.7) Fair value reserve 1.0 (0.6) Equity transaction reserve (2.4) -
General reserve 1,131.5 1,078.0

Equity attributable to owners of the parent 1,419.5 1,360.9
Total assets 1,782.7 1,707.1
Net asset value per share (cents) R3 126.9 122.0

R1 Earnings after tax per share (basic) is computed by dividing profit attributable to owners of the parent by the weighted average number of ordinary shares in issue.

R2 Earnings after tax per share (diluted) is computed by dividing profit attributable to owners of the parent by the weighted average number of ordinary shares in issue after adjusting for the dilutive effect on the exercise of all outstanding share options, performance shares and restricted shares granted to employees.

R3 Net asset value per share is computed by dividing equity attributable to owners of the parent by the number of ordinary shares

in issue.

distributed by