Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — H1 FY2015/16 Earnings Presentation

17 slides from Singapore Airlines's earnings presentation, Nov 6, 2015

  1. Slide 1: SIA Analyst/Media Briefing Q2 & H1 FY2015/16 Results

    SIA ANALYST/MEDIA BRIEFING Q2 & H1 FY2015/16 Results 6 November 2015 THE PARENT AIRLINE Q2 & H1 FY2015/16 RESULTS 1

  2. Slide 2: Parent Airline Operating Performance – FY2015/16

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2015/16 % % Q2 15/16 Change H1 15/16 Change Available Seat-KM 30,082 -1.6 59,602 -2.0 (million) Revenue Pax-KM 25,177 +0.6 47,691 -1.7 (million) Passenger Load 83.7 +1.8 pts 80.0 +0.2 pts Factor (%) Slide 3 THE PARENT AIRLINE COMPANY OPERATING PER

  3. Slide 3: Parent Airline Operating Performance – Yields and Unit Costs

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2015/16 Monthly Pax Yields (Including Fuel Surcharge) FY13/14 FY14/15 FY15/16 ¢/pkm 12 11.5 11.5 11.4 11.4 11.4 11.4 11.3 11.2 11.1 11.3 11.3 10.9 11.2 11 11.1 11.1 11.1 10.8 10.8 10.9 10.9 10.7 10.7 10.7 10.6 10.5 10.4 10.1 10 Apr May Jun Jul Aug

  4. Slide 4: Operating Performance and Results – FY2015/16

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE % Passenger Load Factor 90 Breakeven Load Factor 85 75.4 82.7 81.9 -3.1 80.7 -1.9 79.8 -0.9 80 78.0 -0.2 79.6 79.6 79.8 80.0 -0.5 77.5 75 70 65 60 H1 11/12 H1 12/13 H1 13/14 H1 14/15 H1 15/16 Slide 7 THE PARENT AIRLINE COMPANY RESULTS – FY2015/16 Bett

  5. Slide 5: Cost Composition – H1 FY2015/16

    THE PARENT AIRLINE COMPANY COST COMPOSITION – H1 FY2015/16 ($M) Others 585.3 (-15.4, -2.6%) LPO* Charges Fuel Cost Post Hedging 291.1 (-15.3, -5.0%) 1,956.0 (-387.1, -16.5%) Passenger Costs 336.7 (-7.9, -2.3%) AMO Costs 367.0 (+39.7, +12.1%) Handling Charges 443.8 (+3.5, +0.8%) Staff Aircraft Deprec

  6. Slide 6: Fuel Expenditure and Unit Cost Analysis – H1 FY2015/16

    THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – H1 FY2015/16 $M Lower weighted 2,500 average 2,343 fuel price Stronger Hedging USD Lower Others -387 loss vs against volume (-16.5%) gain last SGD uplifted 2,000 1,956 year +9 -15 +118 1,500 -965 +466 H1 Price Hedging Exchange Volume Others H1 FY14/15 FY

  7. Slide 7: Group Revenue – FY2015/16

    SIA GROUP Q2 & H1 FY2015/16 RESULTS GROUP REVENUE – FY2015/16 ($ million) 4,000 3,905 3,914 H1 H1 15/16 15/16 3,845 Revenue Revenue 3,800 $7,242M $7,578M 3,708 3,733 3,682 3,677 3,600 3,565 Year-on-Year 3,400 $9M $345M -0.1% -4.5% 3,200 Q1 Q2 Q3 Q4 Q1 Q2 Slide 14 FY14/15 FY15/16 7

  8. Slide 8: Group Expenditure and Operating Profit – FY2015/16

    GROUP EXPENDITURE – FY2015/16 ($ million) 4,000 H1 15/16 Expenditure 3,800 3,773 3,771 3,716 $6,992M $7,338M 3,643 3,622 3,603 3,600 3,538 3,400 3,454 Year-on-Year $78M $424M 3,200 -1.1% -5.7% Q1 Q2 Q3 Q4 Q1 Q2 FY14/15 FY15/16 Slide 15 GROUP OPERATING PROFIT – FY2015/16 ($ million) 200 H1 15/16 Op P

  9. Slide 9: Contribution to Group Operating Profit and Group Net Profit

    CONTRIBUTION TO GROUP OPERATING PROFIT – FY2015/16 ($ million) H1 15/16 H1 14/15 Change % Change Singapore Airlines 206 183 + 23 + 12.6 SIA Engineering 48 37 + 11 + 29.7 SilkAir 26 5 + 21 + n.m. SIA Cargo (12) (34) + 22 + 64.7 Scoot (22) (44) + 22 + 50.0 Slide 17 GROUP NET PROFIT – FY2015/16 ($ mill

  10. Slide 10: Group Profit Attributable to Owners of Parent – H1 FY2015/16

    GROUP PROFIT ATTRIBUTABLE TO OWNERS OF PARENT – H1 FY2015/16 Higher ($ million) operating profit -57 400 Higher dividends -49 from AIH Loss this Lower +69 305 300 year vs share of gain last Expense +1 losses year this year +179 +98 vs credit (+142.1%) 200 last year 126 100 +117 0 H1 Associates Divid

  11. Slide 11: Fleet Development – SIA and SilkAir

    FLEET DEVELOPMENT – SIA No. of Aircraft Operating Fleet as at 30 September 2015 104 IN: Delivery of A350-900s +3 Entry of A330-300 into service +1 Entry of 777-300ER into service +1 Delivery of 777-300ER +1 OUT: Decommissioned A330-300s -2 Decommissioned 777-300 -1 Decommissioned 777-200ER -1 Operat

  12. Slide 12: Fleet Development – Scoot and Tigerair

    FLEET DEVELOPMENT – SCOOT No. of Aircraft Operating Fleet as at 30 September 2015 8 IN: Delivery of 787-8s +2 Delivery of 787-9 +1 OUT: Decommissioned 777-200 -1 Operating Fleet as at 31 March 2016 10 Slide 23 FLEET DEVELOPMENT – TIGER No. of Aircraft Operating Fleet as at 30 September 2015 24 OUT:

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

    GROUP CAPITAL EXPENDITURE FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 Aircraft 3,000 4,300 5,100 5,000 3,900 Other Assets 100 150 150 100 100 Total 3,100 4,450 5,250 5,100 4,000 Slide 25 GROUP FUEL HEDGING POSITION For the period Jet Fuel Oct 15 to Mar 16 Percentage hedged (%) 50.7* Average hedged price

  14. Slide 14: Strategic Developments

    STRATEGIC DEVELOPMENTS SIA SERVICE PRODUCT NETWORK  CEM  Cabin  Organic  Lounge  Partnerships  New Aircraft Slide 28 14

  15. Slide 15: Portfolio Strategy

    PORTFOLIO STRATEGY Full Service Positioning Low Cost Regional Long-Haul Markets Slide 29 PORTFOLIO STRATEGY Full Service SYNERGIES Positioning Shared Common Cross Integrated Services FFP Selling Network Low Cost Regional Long-Haul Markets Slide 30 15

  16. Slide 16: Multi-Hubs: Vistara and NokScoot

    MULTI-HUBS Vistara  Currently has 8 Airbus A320s; 9 by Dec 2015  12 cities and 297 weekly flights. Up to 325 weekly flights by Dec 2015  2 new destinations – BBI (1 Oct 2015) & VNS (21 Oct 2015)  Highest on-time performance and lowest complaints amongst all Indian domestic airlines Slide 31 MULT

  17. Slide 17: New Revenue/Business and Thank You

    NEW REVENUE/BUSINESS Airbus Asia Training Centre  A350 simulator entered into service in Oct 2015 – first course delivered in Asia Pacific on A350  A320 simulator ordered and due to enter into service in Apr 2016  Relocation to Seletar state-of-the-art facility planned for Mar 2016  Start of ope

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