Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — H1 FY2013/14 Earnings Presentation

24 slides from Singapore Airlines's earnings presentation, Nov 13, 2013

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

    Singapore Airlines Group Analyst/Media Briefing HALF YEAR FY2013-14 RESULTS 13 November 2013 THE PARENT AIRLINE 1H FY2013/14 RESULTS

  2. Slide 2: Parent Airline Company Results – 2Q & 1H FY13/14

    THE PARENT AIRLINE COMPANY RESULTS – 2Q & 1H FY13/14 Better/ Better/ 2Q/13 (Worse) 1H/13 (Worse) $million $million % $million $million % Total Revenue 3,222 81 2.6 6,382 137 2.2 Total Expenditure 3,125 (68) (2.2) 6,196 (120) (2.0) - Fuel Cost 1,280 (39) (3.2) 2,451 33 1.3 - Fuel Hedging Gain (44) 30

  3. Slide 3: Operating Performance – 2Q & 1H FY13/14

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – 2Q & 1H FY13/14 % % 2Q/13 Change 1H/13 Change Passenger Yield 11.0 -3.5 11.0 -3.5 (¢/pkm) Passenger Unit Cost 9.1 - 9.1 - (¢/ask) Passenger Breakeven 82.7 +2.9 pts 82.7 +2.9 pts Load Factor (%) Slide 5 THE PARENT AIRLINE COMPANY OPERATING PERFORMANC

  4. Slide 4: Operating Performance: Load Factor

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor Breakeven Load Factor (%) 88 86.0 84 82.7 79.8 80 79.4 78.0 79.6 79.6 76 75.6 77.5 75.4 72 68 0 1H 09/10 1H 10/11 1H 11/12 1H 12/13 1H 13/14 Slide 7 THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor Breakeven

  5. Slide 5: Monthly Passenger Yield

    THE PARENT AIRLINE COMPANY MONTHLY PASSENGER YIELD Monthly Pax Yields (Including Fuel Surcharge) ¢/pkm 2009-10 2012-13 2013-14 13 12 11.6 11.6 11.4 11.5 11.4 11.4 11.2 11.3 11.3 11.3 11.2 11.0 11 11.3 11.3 11.1 11.2 11.1 11.0 10.9 10.8 10.8 10.7 10.4 10.4 10.5 10 10.2 9.9 10.0 9.7 9.8 Apr May Jun Ju

  6. Slide 6: Cost Composition – 1H FY13/14

    THE PARENT AIRLINE COMPANY COST COMPOSITION – 1H FY13/14 Others 20.7% (+1.0 pt) Fuel Cost Post Hedging 39.4% (-1.7 pts) Passenger Costs 5.4% Handling Charges 7.1% Aircraft Staff Depreciation & 13.0% (-0.2 pt) Lease Rentals 14.4% (+0.9 pt) Slide 11 THE PARENT AIRLINE COMPANY TOP 5 EXPENDITURE – 1H FY

  7. Slide 7: Fuel Expenditure – 1H FY13/14

    THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – 1H FY13/14 ($ million) 2,800 Lower Higher weighted volume average Hedging uplifted fuel price gain vs 2,600 loss last 2,495 year +80 2,442 -53 -114 (-2.1%) 2,400 -19 H1/12 Volume Price Hedging H1/13 Slide 13 THE GROUP 1H FY2013/14 RESULTS

  8. Slide 8: Group Revenue and Expenditure – 1H FY2013/14

    GROUP REVENUE – 1H FY2013/14 2012/13 2013/14 ($ million) Half Year 4,000 Revenue 3,901 3,840 +107 $7,741M 3,777 +63 3,794 +1.7% +2.8% 3,750 Year-on-Year 3,500 $170M +2.2% 3,250 3,000 2,750 0 Q1 Q2 Slide 15 GROUP EXPENDITURE – 1H FY2013/14 2012/13 2013/14 ($ million) Half Year 4,000 Expenditure 3,758

  9. Slide 9: Group Operating Profit – 1H FY2013/14

    GROUP OPERATING PROFIT – 1H FY2013/14 2012/13 2013/14 ($ million) Half Year 150 Op Profit $169M 125 Year-on-Year 100 $27M 82 87 72 +10 70 +17 +19.0% 75 +13.9% +24.3% 50 25 0 Q1 Q2 Slide 17 CONTRIBUTION TO GROUP OPERATING PROFIT – 1H FY13/14 ($ million) 1H/13 1H/12 Change % Change Singapore Airlines

  10. Slide 10: Group Net Profit – 1H FY2013/14

    GROUP NET PROFIT – 1H FY2013/14 2012/13 2013/14 ($ million) Half Year 200 Net Profit $282M 160 150 Year-on-Year 122 +70 $114M +77.8% +67.9% +44 100 90 78 +56.4% 50 0 Q1 Q2 Slide 19 GROUP NET PROFIT – 1H FY2013/14 ($ million) 300 282 +22 +19 250 +18 Lower +28 Exceptional taxation 200 +27 Higher items

  11. Slide 11: Group Results – 1H FY13/14

    GROUP RESULTS – 1H FY13/14 1H/13 1H/12 EBITDAR Per Share ($) 1.25 1.11 Earnings Per Share (¢) 24.0 14.3 Interim Dividend Per 10.0 6.0 Share (¢) At 30 Sep 13 At 31 Mar 13 Net Asset Value Per 11.30 11.15 Share ($) Slide 21 FLEET DEVELOPMENT - SIA No. of Aircraft Operating Fleet at 30 September 13 103

  12. Slide 12: Fleet Development – SIA, SilkAir

    FLEET DEVELOPMENT - SLK No. of Aircraft Operating Fleet at 30 September 13 23 IN: Delivery of A320-200 + 1 Delivery of B737-800 + 2 OUT: Decommissioned A320-200 - 2 Operating Fleet at 31 March 14 24 Slide 23 FLEET DEVELOPMENT - SCOOT No. of Aircraft Operating Fleet at 30 September 13 5 IN: Lease of

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

    GROUP CAPITAL EXPENDITURE FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 Aircraft 2,250 3,100 2,900 4,050 4,350 Other Assets 200 150 100 150 150 Total 2,450 3,250 3,000 4,200 4,500 Slide 25 GROUP FUEL HEDGING POSITION  Percentage hedged for period Oct 13 to Mar 14 60 (%)  Avg hedged price for period Oct

  14. Slide 14: Business Outlook

    BUSINESS OUTLOOK OUTLOOK  High and volatile fuel price  Intense competition  Uncertain global economy Slide 28

  15. Slide 15: Meeting the Challenges

    MEETING THE CHALLENGES MEETING THE CHALLENGES  Continued Focus on Three Pillars Slide 30

  16. Slide 16: Focus on Three Pillars

    FOCUS ON THREE PILLARS Product Service Network Leadership Excellence Connectivity Slide 31 PRODUCT LEADERSHIP  Next Generation Cabin Products Slide 32

  17. Slide 17: Product Leadership

    PRODUCT LEADERSHIP  New Design Concept for SilverKris Lounge Gallery Space Planned improvements to lounges in: Gallery Space  Sydney  London  Hong Kong Tasting Room  Singapore T3  Kuala Lumpur  Manila  San Francisco  Singapore T2 Dining Area Slide 33 SERVICE EXCELLENCE  Customer Experience

  18. Slide 18: Service Excellence

    SERVICE EXCELLENCE  Loyalty Enhancements  Enhancement of Reserve  Pay with KrisFlyer Miles Value  Guaranteed Economy  Expanded KrisFlyer Class booking partnerships  Access to lounges on arrival for Solitaire members Slide 35 SERVICE EXCELLENCE  SAA website improvement SAA Commercial Bookings

  19. Slide 19: Network Connectivity

    NETWORK CONNECTIVITY  Capacity Increases and New Destinations Copenhagen Fukuoka Osaka Osaka Semarang Makassar Yogyakarta Adelaide Surabaya Shanghai Bali Penang Siem Reap Medan Jakarta Melbourne New Delhi Wuhan Shenzhen Kochi Projected ASK Growth: 3% Projected ASK Growth: 15% Slide 37 NETWORK CONNE

  20. Slide 20: Network Connectivity: Fleet Development

    NETWORK CONNECTIVITY  Fleet Development SIA SilkAir Scoot Delivered in 4 x A330 1 x A320 1 x B772 1H FY2013-14 2 x B773 ER 8 Slide 39 NETWORK CONNECTIVITY  Fleet Development SIA SilkAir Scoot More to join 10 x A330 (Ongoing) 1 x A320 1 x B772 the fleet 6 x B773 ER (Ongoing) (Oct 13) (Oct 13) 70 x

  21. Slide 21: Portfolio of Airlines

    MEETING THE CHALLENGES  Focus on three pillars  Portfolio of Airlines Slide 41 PORTFOLIO OF AIRLINES  Portfolio of brands allows us to tap different segments Premium Full Service Positioning LCC Medium/ Markets Long-Haul Regional Slide 42

  22. Slide 22: Tata-SIA JV: Expanding Into New Markets

    MEETING THE CHALLENGES  Focus on Three Pillars  Portfolio of Airlines  Tata-SIA JV: Expanding Into New Growth Markets Slide 43 TATA-SIA JV: EXPANDING INTO NEW MARKETS  Strong macro drivers Rising  GDP grew at 8.6% CAGR from 2004-05 to 2010-11 and GDP and Incomes projected at 6.0% in the next 5

  23. Slide 23: Tata-SIA JV: What it means for SIA

    TATA-SIA JV: EXPANDING INTO NEW MARKETS  What it means for SIA:  Direct participation in a huge growth market  Diversify traffic base  Commercial synergies between Tata-SIA JV and SIA Slide 45 MEETING THE CHALLENGES  Focus on Three Pillars  Portfolio of Airlines  Tata-SIA JV: Expanding Into N

  24. Slide 24: Thank You

    Thank You

Singapore Airlines — H1 FY2013/14 Earnings Presentation on 6ix