Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — FY2012/13 Earnings Presentation
24 slides from Singapore Airlines's earnings presentation, May 17, 2013
Slide 1: Analyst/Media Briefing FY2012-13 Results
Singapore Airlines Group Analyst/Media Briefing FY2012-13 RESULTS 17 MAY 2013 THE PARENT AIRLINE FY2012/13 RESULTS
Slide 2: The Parent Airline Company Results – FY2012/13
THE PARENT AIRLINE COMPANY RESULTS – FY2012/13 Better/ Better/ 4Q/12 (Worse) 2012/13 (Worse) $million $million $million $million Total Revenue 2,999 (17) 12,387 317 Total Expenditure 3,068 (42) 12,200 (311) - Fuel Cost 1,233 18 4,979 (90) - Fuel Hedging Gain (20) - (28) 8 - Ex-fuel Cost 1,855 (60) 7
Slide 3: Operating Performance – FY2012/13
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2012/13 % % 4Q/12 Change 2012/13 Change Passenger Yield 11.2 -4.3 11.4 -3.4 (¢/pkm) Passenger Unit Cost 9.4 - 9.2 - (¢/ask) Passenger Breakeven 83.9 +3.6 pts 80.7 +2.7 pts Load Factor (%) Slide 5 THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Pa
Slide 4: Operating Performance: Load Factor vs Breakeven
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor Breakeven Load Factor (%) 84 82.7 80.7 80 78.5 78.4 78.0 79.3 76.5 76 77.4 74.8 72 73.6 68 64 0 08/09 09/10 10/11 11/12 12/13 Slide 7 THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor Breakeven Load Factor (%
Slide 5: Passenger Yield and Fuel Price Trend
THE PARENT AIRLINE COMPANY - PASSENGER YIELD Monthly Pax Yields (Including Fuel Surcharge) 2009-10 2011-12 2012-13 ¢/pkm 14 13 12.3 12.2 12.0 11.9 11.9 12.0 12 11.8 11.7 11.6 11.6 11.6 11.4 11.2 11.4 11.6 11.6 11.5 11.0 11 11.2 11.4 11.3 11.3 11.4 11.3 11.3 11.1 11.0 10.7 10.5 10 10.4 10.2 10.4 9.9
Slide 6: Cost Composition and Top 5 Expenditure
THE PARENT AIRLINE COMPANY COST COMPOSITION – FY2012/13 Others 19.8% Fuel 40.6% Passenger Costs (-0.3% pt) 5.4% (+0.4% pt) Handling Costs 7.1% (+0.1% pt) Aircraft Depreciation Staff Costs & Rentals 13.2% 13.9% (-0.8% pt) (+0.6 +0.6% pt) Slide 11 THE PARENT AIRLINE COMPANY TOP 5 EXPENDITURE – FY2012/
Slide 7: Fuel Expenditure – FY12/13
THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – FY12/13 ($ million) 5,250 +222 4,951 5,000 (+82) 4,869 -73 -59 -8 4,750 Higher Lower Weaker Higher 4,500 volume weighted US Dollar hedging uplifted average gain fuel price 4,250 4,000 FY11/12 Volume Price Exchange Hedging FY12/13 Slide 13 THE GROUP FY201
Slide 8: Group Revenue and Expenditure – FY2012/13
GROUP REVENUE – FY2012/13 ($ million) Half Full Year Year 16,500 Revenue 15,997 16,000 $15,098M $7,097M 15,500 15,098 Year-on-Year 15,000 14,858 14,525 $240M 14,500 +1.6% 14,000 13,500 13,000 12,707 12,500 0 08/09 09/10 10/11 11/12 12/13 Slide 15 GROUP EXPENDITURE – FY2012/13 ($ million) Half Full Y
Slide 9: Group Operating Profit – FY2012/13
GROUP OPERATING PROFIT – FY2012/13 ($ million) Half Full Year Year 2,000 Op Revenue Profit $7,097M $229M 1,500 1,271 Year-on-Year $57M 904 -19.9% 1,000 500 286 229 63 0 08/09 09/10 10/11 11/12 12/13 Slide 17 GROUP OPERATING PROFIT – FY2012/13 2011/12 2012/13 ($ million) 200 157 150 131 123 100 72 70
Slide 10: Group Operating Profit and Contribution by Company
GROUP OPERATING PROFIT – FY2012/13 2011/12 2012/13 ($ million) 200 157 150 -26 123 131 -16.6% 100 -53 72 70 -43.1% 50 +61 (n.m) 11 0 -5 -39 (n.m.) -50 -44 Q1 Q2 Q3 Q4 Slide 19 CONTRIBUTION TO GROUP OPERATING PROFIT – FY2012/13 ($ million) 2012/13 2011/12 Change % Change Singapore Airlines 187 181 +
Slide 11: Group Net Profit – FY2012/13
GROUP NET PROFIT – FY2012/13 ($ million) Half Full Year Year 1,500 Net Revenue Profit $7,097M $379M 1,250 1,062 1,092 Year-on-Year 1,000 $43M +12.8% 750 500 379 336 216 250 0 08/09 09/10 10/11 11/12 12/13 Slide 21 GROUP NET PROFIT – FY2012/13 $M 450 Gain on Higher aircraft exceptional 379 400 dispos
Slide 12: Dividends and Fleet Development – SIA
DIVIDENDS – FY2012/13 2012/13 2011/12 Earnings Per Share (¢) 32.2 28.3 Interim Dividend Per Share (¢) 6.0 10.0 Proposed Final Dividend Per 17.0 10.0 Share (¢) Total Ordinary Dividend Per 23.0 20.0 Share (¢) Slide 23 FLEET DEVELOPMENT - SIA No. of Aircraft Operating Fleet at 31 March 13 101 IN: Deliv
Slide 13: Fleet Development – SilkAir and Scoot
FLEET DEVELOPMENT - SLK No. of Aircraft Operating Fleet at 31 March 13 22 IN: Delivery of A320-200 + 2 Delivery of B737-800 + 2 OUT: Decommissioned A320-200 - 2 Operating Fleet at 31 March 14 24 Slide 25 FLEET DEVELOPMENT - SCOOT No. of Aircraft Operating Fleet at 31 March 13 4 IN: Delivery of B777-
Slide 14: Group Capital Expenditure and Fuel Hedging Position
GROUP CAPITAL EXPENDITURE FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Aircraft 1,650 2,100 2,800 2,350 2,900 Other Assets 200 200 150 100 100 Total 1,850 2,300 2,950 2,450 3,000 Slide 27 GROUP FUEL HEDGING POSITION Percentage hedged for period Apr 13 to Mar 14 57 (%) Avg hedged price for period Apr
Slide 15: Meeting Challenges
MEETING CHALLENGES SIA’S ACHIEVEMENTS Top 50 World’s Most Admired Companies Top Worldwide Airline Best International First and Business Class Award Best A380 Product Asia’s Leading Airline Slide 30
Slide 16: Challenging Environment and Ongoing Initiatives
CHALLENGING ENVIRONMENT • Sluggish recovery in United States • Europe debt crisis • High fuel prices • Keen Competition Slide 31 ONGOING INITIATIVES • Grow Asia and Australia network • SQ – MI synergy • Airline partnerships • Portfolio of airlines - Tapping different market segments • Products & Ser
Slide 17: Grow Asia & Australia Network
ONGOING INITIATIVES • Grow Asia and Australia network Slide 33 GROW ASIA & AUSTRALIA NETWORK SIA Group Weekly Flight Frequency Destination 2013 2010 % Growth Australia 133 92 +45% China 133 78 +71% India 99 80 +24% Southeast 464 365 +27% Asia Slide 34
Slide 18: SQ – MI Synergy
ONGOING INITIATIVES • Grow Asia and Australia network • SQ – MI synergy Slide 35 SQ – MI SYNERGY • Greater coordination between SQ and MI in network planning and sales efforts from 2011 % Change from 2010 to 2012 Number of flown bookings + 43% with both SQ & MI segments Slide 36
Slide 19: Airline Partnerships
ONGOING INITIATIVES • Grow Asia and Australia network • SQ – MI synergy • Airline partnerships Slide 37 AIRLINE PARTNERSHIPS % Change from 2011 Increase in destinations outside + 41% of SQ network as a result of code-sharing Increase in SQ marketing flights + 59% per week on code-share partners Slid
Slide 20: Airline Partnerships: Virgin Australia, SAS
AIRLINE PARTNERSHIPS Virgin Australia • First codeshare agreement in Jun’11 Jun’11 vs Jun’13 Increase in SQ/MI flights between Singapore and Australia per week + 20 Increase in Available Seat-Kilometer between Singapore and Australia per week + 18% Scandinavian Airlines • Joint-service operations co
Slide 21: Tapping Different Market Segments
TAPPING DIFFERENT MARKET SEGMENTS Fast growing market 5-Year CAGR Asia Pacific from 2008 to 2012 Full Service Carriers +5% Low Cost Carriers +20% Market share of Low Cost Carriers Market Share of LCCs Region as of Apr’13 Europe 38% United States 31% Asia Pacific 24% Slide 41 TAPPING DIFFERENT MARKET
Slide 22: Products & Services
ONGOING INITIATIVES • Grow Asia and Australia network • SQ – MI synergy • Airline partnerships • Portfolio of airlines – Tapping different market segments • Products & Services Slide 43 PRODUCTS & SERVICES • Continue to innovate and push boundaries • Upcoming exciting offerings • New Seats on second
Slide 23: Customer Experience Management
CUSTOMER EXPERIENCE MANAGEMENT Objectives • 3600 view of our customers • Proactive and personalized services at all possible touch points • Deliver an enhanced travel experience that focuses on meeting more of our customers’ travel needs • Take SIA’s service leadership to a higher level Project Stat
Slide 24: Thank You
Thank You