Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — FY2013/14 Earnings Presentation

27 slides from Singapore Airlines's earnings presentation, May 9, 2014

  1. Slide 1: Analyst/Media Briefing FY2013-14 Results

    ANALYST/MEDIA BRIEFING FY2013-14 RESULTS 9 MAY 2014 THE PARENT AIRLINE FY2013/14 RESULTS

  2. Slide 2: The Parent Airline Company Operating Performance FY2013/14

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2013/14 % % 4Q/13 Change 2013/14 Change Available Seat-KM 29,356 +0.3 120,503 +1.9 (million) Revenue Pax-KM 22,598 -1.8 95,064 +1.4 (million) Passenger Load 77.0 -1.6 pts 78.9 -0.4 pt Factor (%) Slide 3 THE PARENT AIRLINE COMPANY OPERATING PERFORM

  3. Slide 3: The Parent Airline Company Results FY2013/14

    THE PARENT AIRLINE COMPANY RESULTS – FY2013/14 Better/ Better/ 4Q/13 (Worse) 2013/14 (Worse) $million $million $million $million Total Revenue 2,948 (51) 12,480 93 Total Expenditure 3,008 60 12,224 (24) - Fuel Cost 1,180 53 4,844 135 - Fuel Hedging Gain (23) 3 (71) 43 - Ex-fuel Cost 1,851 4 7,451 (2

  4. Slide 4: Operating Performance: Load Factor and Cost Composition

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor (%) Breakeven Load Factor 84 82.7 82.0 80.7 -3.1 80 -4.3 -1.4 78.5 78.0 78.4 -0.6 79.3 78.9 76 3.7 77.4 74.8 72 68 64 0 09/10 10/11 11/12 12/13 13/14 Slide 7 THE PARENT AIRLINE COMPANY COST COMPOSITION – FY2013/14 Others 20.8% (+

  5. Slide 5: Top Expenditure and Fuel Price Trend

    THE PARENT AIRLINE COMPANY TOP 5 EXPENDITURE – FY2013/14 Fuel After 4,773 (-$178 or -3.6%) Hedging 4,951 Aircraft Depr. & 1,798 (+100 or +5.9%) Lease Rentals 1,698 1,567 (-43 or -2.7%) 2013-14 Staff 1,610 2012-13 Handling 871 (+10 or +1.2%) Charges 861 676 (+99 or +17.2%) AMO Costs 577 $M 0 1,000 2,

  6. Slide 6: Fuel Expenditure and The Group FY2013/14 Results

    THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – FY13/14 $M 5200 +60 -218 5000 4,951 +23 Stronger -178 Higher USD (-3.6%) Volume Against -43 4800 Uplifted SGD Lower 4,773 Weighted Higher Average Hedging 4600 Fuel Price Gain 2012-13 Volume Exchange Price Hedging 2013-14 Slide 11 THE GROUP FY2013/14 RESU

  7. Slide 7: Group Revenue and Expenditure FY2013/14

    GROUP REVENUE – FY2013/14 ($ million) Half Full Year Year 16,500 Revenue 16,000 $15,244M $7,097M 15,500 15,244 15,098 Year-on-Year 15,000 14,858 14,525 $146M 14,500 +1.0% 14,000 13,500 13,000 12,707 12,500 0 09/10 10/11 11/12 12/13 13/14 Slide 13 GROUP EXPENDITURE – FY2013/14 ($ million) Half Full Y

  8. Slide 8: Group Operating Profit FY2013/14

    GROUP OPERATING PROFIT – FY2013/14 ($ million) Half Full Year Year 2,000 Op Revenue Profit $7,097M $259M 1,500 1,271 Year-on-Year $30M +13.1% 1,000 500 286 229 259 63 0 09/10 10/11 11/12 12/13 13/14 Slide 15 GROUP OPERATING PROFIT – FY2013/14 2012/13 2013/14 ($ million) 180 151 131 130 81 87 80 72 7

  9. Slide 9: Contribution to Group Operating Profit

    GROUP OPERATING PROFIT – FY2013/14 2012/13 2013/14 ($ million) 180 151 131 +20 130 +15.3% +17 +9 87+24.3% 81 +12.5% 80 72 70 30 -20 -16 -44 -36.4% -70 -60 Q1 Q2 Q3 Q4 Slide 17 CONTRIBUTION TO GROUP OPERATING PROFIT – FY2013/14 ($ million) 2013/14 2012/13 Change % Change Singapore Airlines 256 187 +

  10. Slide 10: Group Net Profit FY2013/14

    GROUP NET PROFIT – FY2013/14 ($ million) Half Full Year Year 1,500 Net Revenue Profit $7,097M $359M 1,250 1,092 Year-on-Year 1,000 -$20M -5.3% 750 500 379 359 336 216 250 0 09/10 10/11 11/12 12/13 13/14 Slide 19 GROUP NET PROFIT – FY2013/14 Share of $M Losses of Associated 550 Companies vs Profit La

  11. Slide 11: Dividends and Fleet Development SIA

    DIVIDENDS – FY2013/14 2013/14 2012/13 Earnings Per Share (¢) 30.6 32.2 Interim Dividend Per Share (¢) 10.0 6.0 Proposed Final Dividend Per 11.0 17.0 Share (¢) Proposed Special Dividend Per 25.0 - Share (¢) Total Dividend Per Share (¢) 46.0 23.0 Slide 21 FLEET DEVELOPMENT - SIA No. of Aircraft Operat

  12. Slide 12: Fleet Development SilkAir and Scoot

    FLEET DEVELOPMENT - SLK No. of Aircraft Operating Fleet at 31 March 14 24 IN: Delivery of B737-800 + 7 OUT: Decommissioned A320-200 - 4 Operating Fleet at 31 March 15 27 Slide 23 FLEET DEVELOPMENT - SCOOT No. of Aircraft Operating Fleet at 31 March 14 6 IN: Delivery of B787 + 2 OUT: Decommissioned B

  13. Slide 13: Group Capital Expenditure and Fuel Hedging Position

    GROUP CAPITAL EXPENDITURE FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 Aircraft 2,100 3,100 2,900 4,150 4,250 Other Assets 200 200 150 150 150 Total 2,300 3,300 3,050 4,300 4,400 Slide 25 GROUP FUEL HEDGING POSITION For the period Jet Fuel Brent Apr 14 to Mar 15 Percentage hedged 45.1 6.8 (%) Average hed

  14. Slide 14: Business Outlook for FY2014/15

    BUSINESS OUTLOOK FOR FY2014/15 OUTLOOK  Intense competition  Economic and political risks  Elevated and range bound fuel prices Slide 28

  15. Slide 15: Meeting the Challenges

    MEETING THE CHALLENGES CHALLENGES FSC Competition Slide 30

  16. Slide 16: Challenges: Network Connectivity

    CHALLENGES FSC Service Competition Product Network Slide 31 NETWORK CONNECTIVITY  Expanding our network through partnerships As at March 2014 Over 5,000 weekly flight segments on code share partners Over six times the number of weekly flights operated by SIA ex-SIN Slide 32

  17. Slide 17: Service Excellence

    SERVICE EXCELLENCE  Customer Experience Management  3600 view of our customers to deliver Proactive and Personalized services  CEM system will be available to all frontline service touchpoints progressively from Q3 2014 Engage Onboard Pre-Flight Plan & Book Slide 33 SERVICE EXCELLENCE  Loyalty P

  18. Slide 18: Product Leadership

    PRODUCT LEADERSHIP  “Home Away From Home”  New-concept SilverKris Lounge debuted in SYD  On track to upgrade SilverKris Lounges in LON, HKG and MNL by end of 2014 Slide 35 PRODUCT LEADERSHIP  USD325 million retrofit of 19 B777- 300ERs with latest cabin products  To provide consistency across en

  19. Slide 19: Premium Economy Class to be launched in 2nd half 2015

    PRODUCT LEADERSHIP Premium Economy Class to be launched in 2nd half 2015 Slide 37 CHALLENGES FSC Service Competition Product Network LCC Competition Slide 38

  20. Slide 20: Challenges: Scoot

    CHALLENGES FSC Service Competition Product Network LCC Group Competition Portfolio Slide 39 SCOOT  Passed 2 million passenger milestone in Jan 2014  Commence renewal of fleet from end of 2014 with first delivery of B787  13 destinations in eight countries or territories Slide 40

  21. Slide 21: Tiger Airways and Scoot-Tiger Partnership

    Tiger Airways  SIA’s interest in Tiger Airways  Subscribed to Rights Shares in April 2013 to maintain interest at 32.7%  Increase interest to 40.0% in December 2013 after purchase of Temasek Holdings’ shares  Subscribed to perpetual convertible capital securities (PCCS) which are convertible int

  22. Slide 22: Scoot-Tiger Partnership Positioning

    SCOOT-TIGER PARTNERSHIP Ningbo Lijiang Shen Zhen Chiang Mai Yangon Clark Kalibo Langkawi Male Bandung Yogyakarta Denpasar Slide 43 PORTFOLIO OF BRANDS Full Service Positioning LCC Regional Markets Long-Haul Slide 44

  23. Slide 23: Portfolio of Brands Positioning

    PORTFOLIO OF BRANDS Full Service Positioning LCC Regional Markets Long-Haul Slide 45 PORTFOLIO OF BRANDS Full Service Extend Positioning Market Reach LCC Regional Markets Long-Haul Slide 46

  24. Slide 24: Challenges: Geography

    CHALLENGES FSC Service Competition Product Network LCC Group Competition Portfolio Geography Slide 47 CHALLENGES FSC Service Competition Product Network LCC Group Competition Portfolio Geography Additional Hubs Slide 48

  25. Slide 25: Tata-SIA and NokScoot Joint Ventures

    TATA-SIA JOINT VENTURE  Hub in New Dehli, India  Tap into the large Indian domestic market  Fleet of 20 A320s  No-Objection Certificate granted on 2 April 2014  Next: AOP from DGCA Slide 49 NOKSCOOT JOINT VENTURE  Hub in Bangkok, Thailand  Second home market for Scoot  Leverage on Nok Air’s

  26. Slide 26: Challenges: New Revenue

    CHALLENGES FSC Service Competition Product Network LCC Group Competition Portfolio Geography Additional Hubs Slide 51 NEW REVENUE  Set-up of New Revenue Unit w.e.f 29 July 2013  Various on-going initiatives  Commission-based 3rd party products  Inflight & Merchandising  Advertising Slide 52

  27. Slide 27: New Venture and Thank You

    NEW VENTURE  Airbus Asia Training Centre  MoU signed to establish flight training JV in Singapore  Operations to commence in Dec 2014 Slide 53 Thank You

Singapore Airlines — FY2013/14 Earnings Presentation on 6ix