Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — FY2017-18 Earnings Presentation
18 slides from Singapore Airlines's earnings presentation, May 17, 2018
Slide 1: 86th SIA Business Meeting: Q4 and FY2017-18 Results
86TH SIA BUSINESS MEETING Q4 and FY2017-18 Results Slide 1 17 May 2018
Slide 2: The Parent Airline Q4 and FY17/18 Results
THE PARENT AIRLINE Q4 AND FY17/18 RESULTS
Slide 3: The Parent Airline Company Operating Performance
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Q4 % % FY17/18 Change FY17/18 Change Available Seat-KM (million) 29,074 +0.8 118,127 +0.4 Revenue Pax-KM (million) 23,587 +1.4 95,855 +3.2 Passenger Load Factor (%) 81.1 +0.5 pt 81.1 +2.1 pts Passenger Yield 10.3 +1.0 10.2 -1.0 (¢/pkm) Revenue per ASK
Slide 4: Operating Performance: Monthly Pax Yields
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Monthly Pax Yields (¢/pkm) 11.5 FY15/16 FY16/17 FY17/18 11.2 11.1 11.0 11.0 10.8 10.8 10.7 10.7 10.7 10.7 10.7 10.6 10.5 10.5 10.5 10.4 10.4 10.3 10.6 10.3 10.3 10.2 10.4 10.4 10.3 10.3 10.2 10.2 10.2 10.2 10.2 10.1 10.1 10.1 10.0 9.8 9.8 9.5 Apr May
Slide 5: The Parent Airline Company Results
THE PARENT AIRLINE COMPANY RESULTS Q4 Better/ Better/ FY17/18 (Worse) FY17/18 (Worse) $million $million $million $million Total Revenue 2,934 221 11,584 490 Total Expenditure 2,797 (43) 10,881 (173) - Net Fuel Cost 771 (25) 2,971 (77) Fuel Cost 835 (98) 3,044 (419) Fuel Hedging Gain (64) 73 (73) 342
Slide 6: The Parent Airline Company Revenue Breakdown
THE PARENT AIRLINE COMPANY REVENUE BREAKDOWN FY17/18 ($’M) Passenger Flown Revenue 9,816.6 (+209.7, +2.2%) Bellyhold Revenue from SIA Cargo 84.7% 8.4% 975.1 (+71.7, +7.9%) Passenger Other Revenue 493.4 (+83.1, +20.3%) Others 298.7 (+125.1, +72.1%) Slide 6
Slide 7: The Parent Airline Company Cost Composition
THE PARENT AIRLINE COMPANY COST COMPOSITION FY17/18 ($’M) Handling Charges Staff Cost 922.9 1,762.3 (+11.8, +1.3%) (+89.6, +5.4%) AMO Costs 724.3 LPO* Charges (-60.4, -7.7%) 630.5 16.2% 7.3% 15.6% 8.5% 8.5% 6.6% (+27.3, +4.5%) 5.7% 5.8% Aircraft Depreciation 17.3% 16.7% and Lease Rentals 5.9% 6.3% 1
Slide 8: SIA Group Q4 and FY17/18 Results
SIA GROUP Q4 AND FY17/18 RESULTS
Slide 9: Group Revenue
GROUP REVENUE ($ million) FY16/17 FY17/18 4,200 4,077 FY17/18 4,017 Revenue 4,000 3,864 3,848 3,847 $15,806M 3,800 3,711 3,658 3,653 Year-on-Year 3,600 $937M 3,400 +6.3% 3,200 3,000 Q1 Q2 Q3 Q4 Slide 9
Slide 10: Group Expenditure
GROUP EXPENDITURE ($ million) FY16/17 FY17/18 4,200 FY17/18 Expenditure 4,000 $14,749M 3,803 3,800 3,747 3,683 3,583 3,616 3,554 Year-on-Year 3,600 3,544 3,465 $503M 3,400 +3.5% 3,200 3,000 Q1 Q2 Q3 Q4 Slide 10
Slide 11: Group Operating Profit
GROUP OPERATING PROFIT ($ million) 1,200 FY17/18 1,057 Op Profit 1,000 $1,057M 800 681 623 Year-on-Year 600 $434M 410 400 +69.7% 259 200 0 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Slide 11
Slide 12: Group Operating Profit
GROUP OPERATING PROFIT ($ million) 1,500 +92 -152 +91 -88 1,400 +52 +694 One-offs: -355 1,300 • KrisFlyer Higher Higher Lower Higher breakage engineering net fuel rentals depreciation revenue revenue costs on 1,200 (+178) aircraft • Compensation 428 for changes in 1,100 aircraft delivery +100 1,057
Slide 13: Group Fuel Expenditure
GROUP FUEL EXPENDITURE ($ million) Composition of Increase in Fuel Cost 4,600 (After Hedging) 4,400 +612 -439 4,200 +59 -80 4,000 3,899 Hedging +152 gain Higher uplift Weaker 3,800 3,747 USD (+4.1%) versus loss against Higher SGD 3,600 weighted average fuel price 3,400 FY16/17 Price Hedging Volume E
Slide 14: Contribution to Group Operating Profit
CONTRIBUTION TO GROUP OPERATING PROFIT ($ million) FY17/18 FY16/17 Change % Change Singapore Airlines 703 386 317 + 82.1 SilkAir 43 101 -58 - 57.4 Scoot 77 67 10 + 14.9 SIA Cargo 148 3 145 n.m. SIAEC 76 72 4 + 5.6 Slide 14
Slide 15: Profit Attributable to Owners of Parent
GROUP PROFIT ATTRIBUTABLE TO OWNERS OF PARENT ($ million) 1,000 FY17/18 893 Net Profit 804 800 $893M 600 Year-on-Year $533M 400 359 368 360 +148.1% 200 0 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Slide 15
Slide 16: Profit Attributable to Owners of Parent
GROUP PROFIT ATTRIBUTABLE TO OWNERS OF PARENT ($ million) 1,100 Higher taxation +18 -87 1,000 +38 Net interest +74 expense vs 893 900 income last Lower year +61 NCI +434 -57 +52 Share of 800 losses & • Gain on profits of disposal assoc. & 700 Absence of: vs losses JVs • SIA Cargo provision for (+48)
Slide 17: Dividends – FY17/18
DIVIDENDS – FY17/18 FY17/18 FY16/17 Earnings Per Share (¢) 75.5 30.5 Interim Dividend Per Share (¢) 10.0 9.0 Proposed Final Dividend Per 30.0 11.0 Share (¢) Total Dividend Per Share (¢) 40.0 20.0 Slide 17
Slide 18: Thank You
THANK YOU SINGAPORE AIRLINES