Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — FY2014/15 Earnings Presentation
24 slides from Singapore Airlines's earnings presentation, May 15, 2015
Slide 1: SIA Analyst/Media Briefing: FY2014/15 Results
SIA ANALYST/MEDIA BRIEFING FY2014/15 Results 15 May 2015 THE PARENT AIRLINE FY2014/15 RESULTS 1
Slide 2: Parent Airline Operating Performance FY2014/15
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2014/15 % % 4Q/14 Change 14/15 Change Available Seat-KM 29,091 -0.9 120,001 -0.4 (million) Revenue Pax-KM 22,144 -2.0 94,209 -0.9 (million) Passenger Load 76.1 -0.9 pt 78.5 -0.4 pt Factor (%) Slide 3 THE PARENT AIRLINE COMPANY OPERATING PERFORMANC
Slide 3: Monthly Passenger Yields and Unit Cost Results
THE PARENT AIRLINE COMPANY RESULTS – FY2014/15 Monthly Pax Yields (Including Fuel Surcharge) FY12/13 FY13/14 FY14/15 ¢/pkm 12 11.6 11.6 11.5 11.5 11.4 11.4 11.4 11.4 11.4 11.3 11.3 11.3 11.2 11.2 11.4 11.2 11.1 11.3 11.1 11.3 11 10.9 11.1 11.1 11.1 10.8 10.8 11.2 11.0 10.9 10.9 10.7 10.8 10.7 10 Apr
Slide 4: Operating Performance and Results FY2014/15
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE % 90 Passenger Load Factor Breakeven Load Factor 85 82.0 80.7 80 -3.1 79.5 78.5 -1.4 78.0 -1.0 -0.6 79.3 78.9 78.5 +3.7 77.4 75 74.8 70 65 60 10/11 11/12 12/13 13/14 14/15 Slide 7 THE PARENT AIRLINE COMPANY RESULTS – FY2014/15 Better/ Better/ 4Q/14 (W
Slide 5: Cost Composition and Fuel Price Trend
THE PARENT AIRLINE COMPANY COST COMPOSITION – FY2014/15 Staff 1,540.2 (-) Passenger Costs 676.7 (+0.1% pt) Fuel Cost Post Hedging 4,536.2 (-1.5% pts) AMO Costs 655.7 (-0.1% pt) LPO* Charges 594.8 (-) Handling Charges 876.2 (+0.1% pt) Others 1,280.5 Aircraft Depreciation & Lease Rentals (+0.5% pt) 1,
Slide 6: Fuel Expenditure and Unit Cost Analysis
THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – FY2014/15 $M Lower 5,000 weighted 4,772 -91 average Hedging fuel price loss vs -236 1.9% gain last +14 4,536 (-4.9%) +47 4,500 Lower year Others uplift Stronger US Dollar 4,000 -734 +528 FY13/14 Volume Price Hedging Exchange Others FY14/15 Slide 11 THE P
Slide 7: SIA Group Revenue FY2014/15
SIA GROUP FY2014/15 RESULTS GROUP REVENUE – FY2014/15 FY13/14 FY14/15 ($ million) 4,099 4,000 Full Year 3,901 3,905 3,914 3,880 Revenue 3,875 3,840 $15,209M $15,566M 3,750 3,682 3,708 3,628 Year-on-Year 3,500 $35M $322M -0.2% +2.1% Q1 Q2 Q3 Q4 Slide 14 7
Slide 8: Group Expenditure and Operating Profit
GROUP EXPENDITURE – FY2014/15 ($ million) FY13/14 FY14/15 4,000 3,953 Full Full Year Year 3,814 3,773 3,788 Expenditure Expenditure 3,758 3,772 3,750 3,724 $14,790M $15,156M 3,689 3,642 3,603 Year-on-Year 3,500 $195M $171M -1.3% +1.1% Q1 Q2 Q3 Q4 Slide 15 GROUP OPERATING PROFIT – FY2014/15 ($ millio
Slide 9: Contribution to Group Operating Profit; Group Net Profit
CONTRIBUTION TO GROUP OPERATING PROFIT – FY2014/15 ($ million) 14/15 13/14 Change % Change Singapore Airlines 340 256 + 84 + 32.8 SIA Engineering 84 116 - 32 - 27.6 SilkAir 41 35 + 6 + 17.1 SIA Cargo (22) (100) + 78 + 78.0 Slide 17 GROUP NET PROFIT – FY2014/15 ($ million) Full Year 1,250 Net Profit
Slide 10: Profit Attributable to Owners; Fleet Development SIA
GROUP PROFIT ATTRIBUTABLE TO OWNERS OF PARENT – FY2014/15 ($ million) 600 Higher Higher operating share of profit losses 500 Lower share of +73 -93 profits 400 -84 368 +9 359 -42 Gain vs (+2.5%) +151 loss last Expense +4 year vs credit 300 last year 0 FY13/14 Operating Associates JVs FY14/15 profit
Slide 11: Fleet Development SilkAir and Scoot
FLEET DEVELOPMENT – SLK No. of Aircraft Operating Fleet at 31 March 15 27 IN: Delivery of B737-800 + 5 OUT: Decommissioned A320-200 - 2 Decommissioned A319-100 - 1 Operating Fleet at 31 March 16 29 Slide 21 FLEET DEVELOPMENT – SCOOT No. of Aircraft Operating Fleet at 31 March 15 6 IN: Delivery of B7
Slide 12: Fleet Development Tiger; Group Capital Expenditure
FLEET DEVELOPMENT – TIGER No. of Aircraft Operating Fleet at 31 March 15 24 OUT: Decommissioned A320 - 1 Operating Fleet at 31 March 16 23 Slide 23 GROUP CAPITAL EXPENDITURE FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 Aircraft 2,700 3,000 4,400 4,800 4,700 Other Assets 200 150 150 150 150 Total 2,900 3,
Slide 13: Group Fuel Hedging Position; Dividends
GROUP FUEL HEDGING POSITION For the period Jet Fuel Brent Apr 15 to Mar 16 Percentage hedged (%) 40.9 4.0 Average hedged price (USD/BBL - Jet Fuel) 106 102 Slide 25 DIVIDENDS – FY2014/15 14/15 13/14 Earnings Per Share (¢) 31.4 30.6 Interim Dividend Per Share (¢) 5.0 10.0 Proposed Final Dividend Per
Slide 14: Outlook FY2015/16
OUTLOOK FY2015/16 CHALLENGES 1 Intense Competition 2 Economic Uncertainty 3 Currency Fluctuations Slide 28 14
Slide 15: Strategy and Network
STRATEGY FSC Network Competition Product Service LCC Group Competition Portfolio Geography Multi-Hubs Revenue New Revenue Streams New Business Slide 29 NETWORK SAS Lufthansa Air Canada Turkish Airlines JetBlue Virgin Atlantic Virgin America SIN EUR SilkAir AME SEA ANA EGYPTAIR Asiana Airlines Ethiop
Slide 16: Network and Product
NETWORK FY14/15 SQ SQ+MI Codeshare Partners Destinations 60 100 180 (+45%) Weekly (ex-SIN) (ex-SIN) Frequencies 741 1,097 8,081 (+59%) Slide 31 PRODUCT Next Generation Seat Products 8 new B777-300ERs USD325M retrofit of 19 existing B777-300ERs First Class Business Class Added privacy Industry’s
Slide 17: Premium Economy Class and New Website
PRODUCT Premium Economy Class Entry Into Service: 9 August 2015 Product to be introduced on A380s, 777-300ERs and A350s Total investment estimated at USD80M Slide 33 PRODUCT New website progressively delivered via beta site Roll-out began Mar 2015 and will take place across this and next yea
Slide 18: Mobile Apps and SilverKris Lounge Development
PRODUCT New mobile and tablet apps as part of overall delivery of enhanced digital experience First phase mobile app launch: 23 Apr 2015 First phase tablet app launch: 1Q FY15/16 Launched: Contextual Homescreen Mobile Boarding Pass / iOS Passbook Apple Watch Upcoming: Deals and Offer
Slide 19: New A350 Aircraft and Customer Experience Management
PRODUCT New A350 Long Haul Aircraft 3-Class Configuration (J/PY/Y) Latest Airbus aircraft technology To be launched in early 2016 Slide 37 SERVICE Customer Experience Management (CEM) CEM Release 1 fully implemented as of Jan 2015 Integrated database Ease of information access Tablet-b
Slide 20: Group Portfolio Positioning and Synergies
GROUP PORTFOLIO Full Service Positioning SYNERGIES Low Cost Regional Long-Haul Markets Slide 39 GROUP PORTFOLIO Synergies for SIA Group More efficient use of resources Economies of scale Commercial Operations Support Services Slide 40 20
Slide 21: Group Portfolio: Tigerair-Scoot Collaboration; Vistara
GROUP PORTFOLIO Collaboration between Tigerair and Scoot CCS granted both carriers ATI in Aug 2014 Allow for closer cooperation between both carriers Jan 2015: Doubling of passengers connecting between both carriers Jan 2015: Both carriers operating SIN-BKK/HKG vv as JV services Feb 2015:
Slide 22: Multi-Hubs: NokScoot; New Revenue/New Business
MULTI-HUBS NokScoot Low cost carrier based in Don Mueang International Airport, Bangkok AOC awarded in October 2014 Current initial fleet of three 415-seat 777-200s with 24 seats in ScootBiz cabin and 391 seats in Economy Class cabin Operated charter services to Seoul, Tokyo and Osaka Star
Slide 23: Expanding KrisFlyer; Airbus Asia Training Centre
NEW REVENUE/NEW BUSINESS Expanding KrisFlyer KrisFlyer Airline Partners Group Airlines Star Alliance SQ/MI Airline Others Scoot Airlines Partners Virgin Australia Tigerair SQ/MI Star Alliance Vistara Others Expand geographically Expand across e.g. Australia, India customer segments Non-Airline Partn
Slide 24: Thank You
Thank You SINGAPORE AIRLINES 24