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SIA ENGINEERING COMPANY 23rd July 2026 SIA ENGINEERING GROUP BUSINESS UPDATES FOR 1st QUARTER FY2026 / 27 BUSINESS UPDATES Maintenance , Repair and Overhaul ( " MRO " ) demand remained stable in the first quarter of FY2026 / 27 . Line Maintenance operations recorded improved flight volumes , with 2.9 % more flights handled in Singapore during the quarter compared to a year ago . This was despite flight cancellations from some airline customers arising from the Middle East conflict . Base Maintenance Malaysia ( " BMM ” ) , which performed its first heavy check at its first hangar in November 2025 , celebrated its official opening in May 2026. Its second hangar is on track to be operational in the second half of FY2026 / 27 . This will bring BMM's total capacity to six concurrent aircraft checks , providing additional capacity to supplement our hangars in Singapore and the Philippines . At our engine and component joint venture ( " JV " ) companies , work volumes have risen year - on- year , with some areas benefitting from higher margin work and new capabilities driving revenue growth . In June 2026 , we signed a JV agreement with Safran Aircraft Engines ( " SAE " ) to establish a full- fledged CFM LEAP ( " LEAP " ) engine MRO shop in Singapore . Our current Quick Turn maintenance services for SAE will be integrated into the JV , forming the foundation for a future state - of - the - art engine MRO facility in Singapore . This new facility will expand the engine shop visit capacity and offer more comprehensive support for both LEAP - 1A and LEAP - 1B engines as the global LEAP fleet grows . Safran Aircraft Engines will hold a 51 % equity stake in the JV , with SIAEC holding the remaining 49 % . Subsequent to the quarter , on 3 July 2026 , we signed a legally non - binding Memorandum of Understanding with Air India Limited to explore MRO collaboration opportunities that could potentially include the formation of an MRO JV in India , serving the increasing needs of the Indian and regional aviation markets . OUTLOOK Demand for MRO services remains resilient amid ongoing geopolitical tensions , supply chain constraints and inflationary pressures . Despite earlier hopes of progress towards the resolution of the military conflict in the Middle East , the situation remains fluid . Given the dynamic operating Page 1 of 2