Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — FY2010/11 Earnings Presentation

23 slides from Singapore Airlines's earnings presentation, May 13, 2011

  1. Slide 1: Analyst / Media Briefing FY2010-11 Results

    SINGAPORE AIRLINES GROUP ANALYST / MEDIA BRIEFING FY2010-11 RESULTS 13 MAY 2011 THE PARENT AIRLINE FY2010/11 RESULTS

  2. Slide 2: The Parent Airline Company Results – FY2010/11

    THE PARENT AIRLINE COMPANY RESULTS – FY2010/11 Better/ Better/ 4Q/10 (Worse) 2010/11 (Worse) $million $million $million $million Total Revenue 2,926 242 11,739 1,594 Total Expenditure 2,832 (307) 10,888 (704) - Fuel Cost 1,076 (242) 3,755 (678) - Fuel Hedging (Gain)/Loss (33) 49 50 410 - Ex-fuel Cos

  3. Slide 3: Operating Performance – FY2010/11

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2010/11 4Q/10 % Change 2010/11 % Change Passenger Yield 12.1 + 9.0 11.9 + 14.4 (¢/pkm) Passenger Unit Cost 9.1 + 5.8 8.9 + 3.5 (¢/ask) Passenger Breakeven 75.2 - 2.3 pts 74.8 - 7.9 pts Load Factor (%) Slide 5 THE PARENT AIRLINE COMPANY OPERATING P

  4. Slide 4: Operating Performance – Passenger Load Factor

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor (%) 84 80.3 80 79.2 78.4 78.5 76.5 76 72 68 64 0 06/07 07/08 08/09 09/10 10/11 Slide 7 THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor Breakeven Load Factor (%) 84 82.7 80.3 80 79.2 78.4 78.5 76.5 76 74.8 7

  5. Slide 5: Operating Performance – Load Factor and Passenger Yield

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor Breakeven Load Factor (%) 84 82.7 80.3 -4.3 80 79.2 78.4 78.5 76.5 3.7 76 6.7 10.9 2.9 74.8 72 73.6 72.5 68 69.4 64 0 06/07 07/08 08/09 09/10 10/11 Slide 9 THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE (¢/PKM) Passenger Yield

  6. Slide 6: Cost Composition and Top 5 Expenditure – FY2010/11

    THE PARENT AIRLINE COMPANY COST COMPOSITION – FY2010/11 Others 21.3% (+0.2% pt) Fuel 35.0% Passenger Costs (+0.3% pt) 5.1% (-0.2% pt) Handling Costs 7.4% (-0.3% pt) Aircraft Depreciation Staff Costs & Rentals 14.2% 17.0% (-0.7% pt) (+0.7 +0.7% pt) Slide 11 THE PARENT AIRLINE COMPANY TOP 5 EXPENDITUR

  7. Slide 7: Fuel Expenditure – FY2010/11

    THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – FY2010/11 ($ million) 5,000 +100 4,500 +841 3,805 4,000 -263 (+268) 3,537 -410 3,500 Higher Higher Weaker Lower 3,000 weighted volume US Dollar Hedging average uplifted Losses fuel price 0 FY09/10 Price Volume Exchange Hedging FY10/11 Slide 13 THE PARENT

  8. Slide 8: Fuel Expenditure – 4Q FY2010/11

    THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – 4Q FY2010/11 ($ million) +37 1,200 +308 1,043 (+193) 1,000 -103 -49 851 800 600 400 Higher Higher Weaker Hedging weighted volume US Dollar Gains 200 average uplifted vs fuel price Losses 0 FY09/10 Price Volume Exchange Hedging FY10/11 Slide 15 THE PARENT

  9. Slide 9: The Group FY2010/11 Results

    THE GROUP FY2010/11 RESULTS GROUP REVENUE – FY2010/11 2009/10 2010/11 ($ million) (Proforma) 4,000 3,841 3,750 3,631 3,587 3,500 3,466 3,429 3,305 3,250 2,944 3,000 2,659 2,750 0 Q1 Q2 Q3 Q4 Slide 18

  10. Slide 10: Group Revenue – FY2010/11

    GROUP REVENUE – FY2010/11 2009/10 2010/11 ($ million) (Proforma) 4,000 +412 3,750 (+12%) +687 (+23%) +282 3,500 +807 (+9%) (+30%) 3,250 3,000 2,750 0 Q1 Q2 Q3 Q4 Slide 19 GROUP EXPENDITURE – FY2010/11 2009/10 2010/11 ($ million) (Proforma) 4,000 3,750 3,500 3,421 3,286 3,332 3,250 3,215 3,155 3,106

  11. Slide 11: Group Expenditure – FY2010/11

    GROUP EXPENDITURE – FY2010/11 2009/10 2010/11 ($ million) (Proforma) 4,000 3,750 3,500 +357 +131 +226 (+12%) 3,250 +190 (+4%) (+7%) (+6%) 3,000 2,750 0 Q1 Q2 Q3 Q4 Slide 21 GROUP OPERATING PROFIT/(LOSS) – FY2010/11 2009/10 2010/11 ($ million) (Proforma) 600 509 500 400 345 323 300 251 241 200 166 10

  12. Slide 12: Group Operating Profit/(Loss) – FY2010/11

    GROUP OPERATING PROFIT/(LOSS) – FY2010/11 2009/10 2010/11 ($ million) (Proforma) 600 500 +186 400 (+58%) 300 +556 (n.m.) -75 200 +617 (-31%) (n.m.) 100 0 -100 -200 -300 -400 Q1 Q2 Q3 Q4 n.m. not meaningful Slide 23 GROUP NET PROFIT/(LOSS) – FY2010/11 2009/10 2010/11 ($ million) (Proforma) 600 500 40

  13. Slide 13: Group Net Profit/(Loss) – FY2010/11

    GROUP NET PROFIT/(LOSS) – FY2010/11 2009/10 2010/11 ($ million) (Proforma) 600 500 400 -116 +562 (-29%) 300 (n.m.) -107 200 +596 (-38%) (n.m.) 100 0 -100 -200 -300 -400 Q1 Q2 Q3 Q4 n.m. not meaningful Slide 25 GROUP REVENUE – FY2010/11 ($ million) Full Year 15,973 15,997 Revenue 16,000 $14,525M 15,5

  14. Slide 14: Group Revenue – FY2010/11

    GROUP REVENUE – FY2010/11 ($ million) Full Year 15,632 15,537 Revenue 16,000 (-341) (-460) $14,525M 15,500 15,000 14,525 Year-on-Year 14,146 14,500 (-348) $1,817M 14,000 (+14.3%) 13,500 Year-on-Year 13,000 (ex-SATS) 12,337 12,500 (-371) $2,188M (+17.7%) 0 06/07 07/08 08/09 09/10 10/11 Slide 27 GROUP

  15. Slide 15: Group Expenditure – FY2010/11

    GROUP EXPENDITURE – FY2010/11 ($ million) Full Year Half Year 16,000 Expenditure Revenue $13,254M $7,097M 15,500 14,825 15,000 (-268) Year-on-Year 14,500 $609M 14,000 13,662 (+4.8%) (-186) 13,500 12,951 13,254 Year-on-Year 13,000 (-229) (ex-SATS) 12,350 12,500 (-295) $904M (+7.3%) 0 06/07 07/08 08/0

  16. Slide 16: Group Operating Profit and Contribution by Company

    GROUP OPERATING PROFIT/(LOSS) – FY2010/11 ($ million) Full Year Half Year 2,500 Op Profit Revenue 1,970 $1,271M $7,097M 2,000 (-155) 1,195 Year-on-Year 1,500 1,271 (-119) $1,208M 1,000 712 (-192) 500 Year-on-Year -13 (ex-SATS) (-76) 0 $1,284M -500 06/07 07/08 08/09 09/10 10/11 Slide 31 CONTRIBUTION

  17. Slide 17: Group Net Profit – FY2010/11

    GROUP NET PROFIT – FY2010/11 ($ million) 1,800 +350 1,600 1,419 1,400 1,271 -202 1,200 1,092 1,000 -270 -57 Surplus on Provision 800 disposal of for fines aircraft, imposed on 600 share of SIA Cargo profits of 400 associated companies 200 and JVs, and others 0 Op Profit Non Exceptional Profit Tax No

  18. Slide 18: Group Net Profit – FY2010/11

    GROUP NET PROFIT – FY2010/11 ($ million) Half Full Year Year 2,500 Net Revenue Profit 1,953 1,915 $1,092M $7,097M (-176) 2,000 (-134) Year-on-Year 1,500 $876M 924 1,092 1,000 (-138) Year-on-Year (ex-SATS) 500 157 (-59) $935M 0 06/07 07/08 08/09 09/10 10/11 Slide 35 GROUP NET PROFIT – FY2010/11 ($ mi

  19. Slide 19: Per Share Statistics and Dividends

    PER SHARE STATISTICS – FY2010/11 2010/11 2009/10 EBITDAR Per Share ($) 3.33 2.25 Earnings Per Share (¢) 91.4 18.2 At 31 Mar 11 At 31 Mar 10 Net Asset Value Per 11.89 11.30 Share ($) Slide 37 DIVIDENDS – FY2010/11 2010/11 2009/10 Earnings Per Share (¢) 91.4 18.2 Interim Dividend Per Share (¢) 20.0 -

  20. Slide 20: Outlook for 2011/12

    OUTLOOK FOR 2011/12 CHALLENGES AHEAD  Twin challenges of: – High and volatile fuel prices – Forward load concerns Slide 40

  21. Slide 21: Jet Fuel Prices

    JET FUEL PRICES  Two-and-half year high  25% surge in jet fuel prices since Jan11 – Average price for Apr11: USD140/BBL  High and volatile forward prices – Continuing tensions in Middle East  Weaken fragile economic recovery Slide 41 JET FUEL PRICES Sing Jet Kero Fuel Price Trend Since 30 Sep 10

  22. Slide 22: Uncertain Economic Outlook; Fleet Development

    UNCERTAIN ECONOMIC OUTLOOK  Negative outlook in US  Fears of sovereign debt crisis in Europe  Nuclear radiation in Japan  Forward bookings indicate weaker loads in near term Slide 42 OUTLOOK FOR 2011/12 - FLEET DEVELOPMENT No. of Aircraft Operating Fleet at 31 March 11 108 IN: Delivery of A380-8

  23. Slide 23: Outlook for 2011/12 – Group Capital Expenditure

    OUTLOOK FOR 2011/12 - GROUP CAPITAL EXPENDITURE FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 Aircraft 2,150 1,400 2,400 2,800 1,950 Other Assets 50 100 100 150 150 Total 2,200 1,500 2,500 2,950 2,100 Slide 44 Singapore Airlines Limited Company Registration No.: 197200078R Further information and media re

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