Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — FY2005/06 Earnings Presentation
33 slides from Singapore Airlines's earnings presentation, May 9, 2006
Slide 1: FY2005-06 Financial Results
FY2005-06 Financial Results 9 May 2006 Singapore Airlines Limited Company Registration No.: 197200078R Further information and media releases can be found at the Singapore Airlines internet website www.singaporeair.com.sg
Slide 2: SIA Group 2005/06 Results
» SIA GROUP 2005/06 RESULTS SINGAPORE AIRLINES y
Slide 3: Group Highlights – FY2005/06
GROUP HIGHLIGHTS – FY2005/06 Highlights of Group’s Performance • Record revenue $13,341 million (+11.1%) • Operating profit $1,213 million (-7.9%) • Net profit $1,241 million (-8.3%) • Earnings per share 101.7 cents (-8.4%) • Total dividend per share 45.0 cents (+12.5%)
Slide 4: Group Revenue – FY2005/06
GROUP REVENUE – FY2005/06 ($ million) ($ million) 16,000 14,000 11.1% 13,341 12,013 12,000 10,515 9,762 10,000 9,383 8,000 6,000 4,000 2,000 0 2002 2003 2004 2005 2006
Slide 5: Group Fuel Expenditure – FY2005/06
GROUP FUEL EXPENDITURE – FY2005/06 ($ million) ($ million) 5,000 57.5% 4,240 4,000 3,000 2,693 1,764 1,865 1,811 2,000 1,000 0 2002 2003 2004 2005 2006
Slide 6: Group Ex-Fuel Expenditure – FY2005/06
GROUP EX-FUEL EXPENDITURE – FY2005/06 ($ million) ($ million) 10,000 7,933 8,003 7,888 8,000 7,282 6,694 -1.4% 6,000 4,000 2,000 0 2002 2003 2004 2005 2006
Slide 7: Group Operating Profit – FY2005/06
GROUP OPERATING PROFIT – FY2005/06 ($ million) ($ million) 3,000 +1,328 -1,547 2,500 2,000 1,500 1,317 1,213 +115 (-7.9%) 1,000 Increase in Higher Lower 500 loads & yields fuel price other costs 0 2005 Revenue Fuel Ex-Fuel 2006
Slide 8: Group Results – FY2005/06
GROUP RESULTS – FY2005/06 2005-06 2004-05 Earnings Per Share (¢) 101.7 111.0 Proposed Final 35.0 30.0 Dividend Per Share (¢) At 31 Mar 06 At 31 Mar 05 Net Asset Value Per 11.00 10.13 Share ($)
Slide 9: Contribution to Group Operating Profit – FY2005/06
CONTRIBUTION TO GROUP OPERATING PROFIT – FY2005/06 Others SilkAir 5% (2%) 1% (2%) SIA Cargo 14% (20%) SIA SIAEC 54% (53%) 11% (8%) FY04/05 Contribution SATS 15% (15%)
Slide 10: The Parent Airline 2005/06 Results
THE PARENT AIRLINE 2005/06 RESULTS
Slide 11: The Passenger Airline Company Highlights – FY2005/06
THE PASSENGER AIRLINE COMPANY HIGHLIGHTS – FY2005/06 Highlights of Company’s Performance • Capacity growth (in ASK) 4.6% • Record passengers carried 16.995 million (+6.6%) • Passenger load factor 75.6% (+1.5% points) • Passenger yield 10.6¢/pkm (+5.0%) • Record revenue $10,303 million (+11.3%) • Uni
Slide 12: The Passenger Airline Company Results – FY2005/06
THE PASSENGER AIRLINE COMPANY RESULTS – FY2005/06 ($ million) 2005-06 2004-05 % Change Total Revenue 10,302.8 9,260.1 + 11.3 Total Expenditure (9,651.8) (8,562.3) + 12.7 Operating Profit 651.0 697.8 - 6.7
Slide 13: Passenger Airline Operating Performance – FY2005/06
THE PASSENGER AIRLINE COMPANY OPERATING PERFORMANCE – FY2005/06 2005-06 2004-05 % Change Passenger Yield (¢/pkm) 10.6 10.1 + 5.0 Unit Cost (¢/ask) 7.5 7.0 + 7.1 Passenger Breakeven 70.8 69.3 + 1.5 pts Load Factor (%)
Slide 14: Passenger Airline Operating Performance – Load Factors
THE PASSENGER AIRLINE COMPANY OPERATING PERFORMANCE – FY2005/06 80% Passenger Load Factor 78% Breakeven Load Factor 76% 74% 0.9% 0.5% 4.8% 72% 2.9% 4.8% 70% 68% 66% 64% 62% 60% 2002 2003 2004 2005 2006
Slide 15: Passenger Airline Cost Composition – FY2005/06
THE PASSENGER AIRLINE COMPANY COST COMPOSITION – FY2005/06 Others 23.4% Fuel (-4.4 pts) 34.9% (+9.8 pts) Sales 6.7% (-1.1 pts) Airport handling 7.6% (-0.8 pt) Staff 16.3% Aircraft depreciation & rental (-1.8 pts) 11.1% (-1.7 pts)
Slide 16: Passenger Airline Cost Analysis – FY2005/06
THE PASSENGER AIRLINE COMPANY COST ANALYSIS – FY2005/06 $3,368 M Fuel (+56.8%) $1,570 M Staff (+1.2%) Depr, Rentals & $1,074 M Carrying Costs (-1.7%) FY2004-05 FY2005-06 $733 M Airport Handling (+1.6%) $643 M Sales (-3.8%) $2,264 M Others (-4.9%) 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
Slide 17: Passenger Airline Fuel Cost – FY2005/06
THE PASSENGER AIRLINE COMPANY FUEL COST – FY2005/06 (U$/BBL) ($ million) 90 6,000 + 39.7% 76.26 80 5,000 70 60 54.58 4,000 3,368 50 +1,220 37.91 (+56.8%) 3,000 40 34.51 31.39 2,148 30 2,000 1,481 1,523 1,416 20 1,000 10 0 0 2002 2003 2004 2005 2006
Slide 18: Passenger Airline Fuel Cost Analysis – FY2005/06
THE PASSENGER AIRLINE COMPANY FUEL COST ANALYSIS – FY2005/06 ($ million) 4,000 +1,022 +136 3,368 3,500 3,000 - 39 +1,220 2,500 +101 2,148 2,000 1,500 1,000 Increase Increase in Weakening Lower in volume weighted of USD hedging 500 uplifted average against gain fuel price SGD 0 2005 Volume Price Exch
Slide 19: SIA Subsidiaries 2005/06 Results
SIA SUBSIDIARIES 2005/06 RESULTS
Slide 20: Subsidiaries Net Profit – FY2005/06
SUBSIDIARIES NET PROFIT – FY2005/06 ($ million) 2005-06 2004-05 % Change SATS Group 188.6 167.8 + 12.4 SIAEC Group 230.6 170.4 + 35.3 SIA Cargo 135.3 182.5 - 25.9 SilkAir 20.6 30.0 - 31.3
Slide 21: SIA Cargo Results – FY2005/06
SIA CARGO RESULTS – FY2005/06 ($million) 2005-06 2004-05 % Change Total Revenue 3,244.6 2,864.5 + 13.3 Total Expenditure (3,070.8) (2,603.2) + 18.0 Operating Profit 173.8 261.3 - 33.5 Net Profit 135.3 182.5 - 25.9
Slide 22: SIA Cargo Operating Performance – FY2005/06
SIA CARGO OPERATING PERFORMANCE – FY2005/06 2005-06 2004-05 % Change Cargo Yield 38.6 35.9 + 7.5 (¢/ltk) Unit Cost 23.5 21.3 + 10.3 (¢/ctk) Breakeven Load 60.9 59.3 + 1.6 pts Factor (%)
Slide 23: SIA Cargo Operating Performance – FY2005/06
SIA CARGO OPERATING PERFORMANCE – FY2005/06 2005-06 2004-05 % Change Capacity + 7.2 Load Carried + 7.4 Cargo Load 63.6 63.5 + 0.1 pt Factor (%) Breakeven Load 60.9 59.3 + 1.6 pts Factor (%) Cargo Load 2.7 pts 4.2 pts - 1.5 pts Factor Spread (%)
Slide 24: SilkAir Results – FY2005/06
SILKAIR RESULTS – FY2005/06 ($million) 2005-06 2004-05 % Change Total Revenue 344.7 295.5 + 16.6 Total Expenditure (331.6) (272.6) + 21.6 Operating Profit 13.1 22.9 - 42.8 Net Profit 20.6 30.0 - 31.3
Slide 25: SilkAir Operating Performance – FY2005/06
SILKAIR OPERATING PERFORMANCE – FY2005/06 2005-06 2004-05 % Change Overall Yield 138.7 134.4 + 3.2 (¢/ltk) Overall Unit Cost 72.6 66.9 + 8.5 (¢/ctk) Overall Breakeven 52.3 49.8 + 2.5 pts Load Factor (%)
Slide 26: SilkAir Operating Performance – FY2005/06
SILKAIR OPERATING PERFORMANCE – FY2005/06 2005-06 2004-05 % Change Capacity + 12.8 Load Carried + 15.0 Overall Load 52.9 51.9 + 1.0 pt Factor (%) Overall Breakeven 52.3 49.8 + 2.5 pts Load Factor (%) Overall Load 0.6 pt 2.1 pts - 1.5 pts Factor Spread (%)
Slide 27: Outlook & Developments
» OUTLOOK & DEVELOPMENTS
Slide 28: Outlook
OUTLOOK • Fuel Price • Fleet Development • Network Expansion
Slide 29: Group Fuel Hedging Full Year Position – FY2006/07
GROUP FUEL HEDGING FULL YEAR POSITION – FY2006/07 • Budgeted Uplift Volume (M BBL) 36 • Hedging Policy (%) 30-60 • Declining wedge method
Slide 30: Fleet Development – FY2006/07
FLEET DEVELOPMENT – FY2006/07 No. of Aircraft As at 1 April 2006 90 Aircraft Deliveries • Airbus A380-800 7 • Boeing B777-300ER 9 Aircraft De-commissioned • Boeing B747-400 5 As at 31 March 2007 101
Slide 31: Network Expansion – FY2006/07
NETWORK EXPANSION – FY2006/07 • Northern Summer (April 06) – Adelaide (1x daily) – Taipei (3x daily) – Penang (3x daily) • Northern Winter (October 06) – Shanghai (5x daily)
Slide 32: Network Expansion – FY2006/07
NETWORK EXPANSION – FY2006/07 • New Destinations (from 19 July 06) – Milan (3x weekly) – Barcelona (3x weekly) • 4% growth in capacity • 65 destinations in 35 countries by March 07
Slide 33: First to fly the A380
First to fly the A380 AS SINGAPORE AIRLINES y,