Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — H1 FY2005-06 Earnings Presentation
36 slides from Singapore Airlines's earnings presentation, Oct 27, 2005
Slide 1: Half Year and 2nd Quarter FY2005-06 Financial Results
Half Year and 2nd Quarter FY2005-06 Financial Results 27 October 2005 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 1H 2005/06 Results
» SIA GROUP 1H 2005/06 RESULTS SINGAPORE AIRLINES y,
Slide 3: Group Highlights – 1H FY05/06
GROUP HIGHLIGHTS – 1H FY05/06 Highlights of Group’s Performance • Record revenue $6,395 million (+10.7%) • Operating profit $584 million (-6.3%) • Net profit $578 million (-3.9%) • Earnings per share 47.4 cents (-3.9%) • Interim dividend per share 10.0 cents (unchanged)
Slide 4: Group Profit Attributable to Shareholders
GROUP PROFIT ATTRIBUTABLE TO SHAREHOLDERS – 1H FY05/06 ($ million) ($ million) 650 601.1 568.6 577.8 600 547.6 550 500 2004-05 450 2005-06 400 334.0 343.2 346.4 350 313.0 Bloomberg Forecast 300 254.7 250 234.6 Reuters Forecast 200 0 1st Qtr 2nd Qtr Half Year
Slide 5: Group Results – 1H FY05/06
GROUP RESULTS – 1H FY05/06 ($ million) 1H/05 1H/04 % Change Total Revenue 6,394.7 5,778.8 + 10.7 Total Expenditure (5,811.0) (5,156.0) + 12.7 Operating Profit 583.7 622.8 - 6.3 Net Profit Attributable 577.8 601.1 - 3.9 to Shareholders
Slide 6: Group Revenue
GROUP REVENUE – 1H FY05/06 ($ million) ($ million) 8,000 7,000 +10.7% 6,395 5,779 6,000 5,229 5,000 4,732 4,172 4,000 3,000 2,000 1,000 0 1H/01 1H/02 1H/03 1H/04 1H/05
Slide 7: Group Fuel Expenditure
GROUP FUEL EXPENDITURE – 1H FY05/06 ($ million) ($ million) 2,500 +61.9% 1,939 2,000 1,500 1,198 1,000 903 882 820 500 0 1H/01 1H/02 1H/03 1H/04 1H/05
Slide 8: Group Ex-Fuel Expenditure
GROUP EX-FUEL EXPENDITURE – 1H FY05/06 ($ million) ($ million) 5,000 3,838 3,958 3,872 4,000 3,377 3,414 -2.2% 3,000 2,000 1,000 0 1H/01 1H/02 1H/03 1H/04 1H/05
Slide 9: Group Results – Net Asset Value and Debt/Equity
GROUP RESULTS – 1H FY05/06 At 30 Sep 05 At 31 Mar 05 Net Asset Value Per 10.58 10.14 Share ($) Total Debt/Equity 0.18:1 0.19:1
Slide 10: Contribution to Group Operating Profit
CONTRIBUTION TO GROUP OPERATING PROFIT – 1H FY05/06 Others 5% (4%) SIA Cargo 12% (15%) SIAEC 10% (10%) SIA 54% (54%) 1H FY04 SATS Contribution 19% (17%)
Slide 11: The Parent Airline 1H 2005/06 Results
THE PARENT AIRLINE 1H 2005/06 RESULTS
Slide 12: The Passenger Airline Company Results
THE PASSENGER AIRLINE COMPANY RESULTS – 1H FY05/06 ($ million) 1H/05 1H/04 % Change Total Revenue 4,978.3 4,449.0 + 11.9 Total Expenditure (4,665.6) (4,112.4) + 13.5 Operating Profit 312.7 336.6 - 7.1
Slide 13: The Passenger Airline Company Operating Performance
THE PASSENGER AIRLINE COMPANY OPERATING PERFORMANCE – 1H FY05/06 1H/05 1H/04 % Change Passenger Yield 10.4 9.9 + 5.1 (¢/pkm) Unit Yield (¢/ask) 7.7 7.3 + 5.5 Unit Cost (¢/ask) 7.2 6.8 + 5.9 Passenger 69.2 68.7 + 0.5 pt Breakeven Load Factor (%)
Slide 14: The Passenger Airline Company Operating Performance
THE PASSENGER AIRLINE COMPANY OPERATING PERFORMANCE – 1H FY05/06 1H/05 1H/04 % Change Seat Capacity + 6.1 Passenger Carriage + 6.7 Passenger Load 74.3 73.9 + 0.4 pt Factor (%) Passenger 69.2 68.7 + 0.5 pt Breakeven Load Factor (%) Passenger Load 5.1 pts 5.2 pts - 0.1 pt Factor Spread (%)
Slide 15: The Passenger Airline Company Cost Composition
THE PASSENGER AIRLINE COMPANY COST COMPOSITION – 1H FY05/06 Others Fuel 23.7% 33.2% (-4.4pts) (+10.0 pts) Sales 7.0% (-1.1pts) Handling 8.2% Staff (-0.6 pt) 16.5% (-1.9 pts) Aircraft depreciation & rental 11.4% (-2.0 pts)
Slide 16: Fuel Price
FUEL PRICE – 1H FY05/06 90 85 81.0 80 1H/05 75 Avg 73.4 70 USD/BBL 65 70.5 60 56.8 1H/04 55 50 Avg 49.1 45 40 42.2 35 Apr May Jun Jul Aug Sep
Slide 17: The Passenger Airline Company Cost Analysis
THE PASSENGER AIRLINE COMPANY COST ANALYSIS – 1H FY05/06 $1,549.2M Fuel (+62.4%) $767.9M Staff (+1.4%) Depr, Rentals & $533.2M Carrying Costs (-3.1%) 1H/05 1H/04 $381.4M Handling (+5.1%) $326.0M Sales (-2.3%) $1,107.9M Others (-4.0%) 0 400 800 1200 1600 2000 $ million
Slide 18: The Passenger Airline Company Cost Analysis
THE PASSENGER AIRLINE COMPANY COST ANALYSIS – 1H FY05/06 $1,549.2M Fuel (+62.4%) $767.9M Staff 1H/05 (+1.4%) 1H/04 Better/Worse FuelRentals Depr, cost & 1,714 M 1,109 M 605 M Carrying Costs 1H/05 1H/04 Hedging (gain)/loss (165) M (155) M 10 M Handling Fuel cost (net) 1,549 M 954 M 595 M Sales Others
Slide 19: The Passenger Airline Company Cost Analysis
THE PASSENGER AIRLINE COMPANY COST ANALYSIS – 1H FY05/06 $1,549.2M Fuel (+62.4%) $767.9M Staff 1H/05 (+1.4%) 1H/04 Better/Worse FuelRentals Depr, cost & 1,714 M 1,109 M 605 M Carrying Costs 1H/05 1H/04 Hedging (gain)/loss (165) M (155) M 10 M Increase in volume uplifted Handling + 58 M Weakening of
Slide 20: The Passenger Airline Company Cost Analysis
THE PASSENGER AIRLINE COMPANY COST ANALYSIS – 1H FY05/06 $1,549.2M Fuel (+62.4%) $767.9M Staff 1H/05 (+1.4%) 1H/04 Better/Worse FuelRentals Depr, cost & 1,714 M 1,109 M 605 M Carrying Costs 1H/05 1H/04 Hedging (gain)/loss (165) M (155) M 10 M Increase in volume uplifted Handling + 58 M Weakening of
Slide 21: SIA Subsidiaries 1H 2005/06 Results
SIA SUBSIDIARIES 1H 2005/06 RESULTS
Slide 22: Subsidiaries Net Profit
SUBSIDIARIES NET PROFIT – 1H FY05/06 ($ million) 1H/05 1H/04 % Change SIA Cargo 45.0 69.5 - 35.3 SATS Group 106.8 78.4 + 36.2 SIAEC Group 105.6 85.4 + 23.7 SilkAir (2.5) 2.8 n.m.
Slide 23: SIA Cargo Results
SIA CARGO RESULTS – 1H FY05/06 ($million) 1H/05 1H/04 % Change Total Revenue 1,530.4 1,376.0 + 11.2 Total Expenditure (1,463.2) (1,281.1) + 14.2 Operating Profit 67.2 94.9 - 29.2 Net Profit 45.0 69.5 - 35.3
Slide 24: SIA Cargo Operating Performance
SIA CARGO OPERATING PERFORMANCE – 1H FY05/06 1H/05 1H/04 % Change Cargo Yield 37.8 34.7 + 8.9 (¢/ltk) Unit Cost 22.6 21.1 + 7.1 (¢/ctk) Breakeven 59.8 60.8 - 1.0 pt Load Factor (%)
Slide 25: SIA Cargo Operating Performance
SIA CARGO OPERATING PERFORMANCE – 1H FY05/06 1H/05 1H/04 % Change Capacity + 7.8 Load Carried + 4.3 Cargo Load 61.8 63.9 - 2.1 pts Factor (%) Breakeven Load 59.8 60.8 - 1.0 pt Factor (%) Cargo Load 2.0 pts 3.1 pts - 1.1 pts Factor Spread (%)
Slide 26: SilkAir Results
SILKAIR RESULTS – 1H FY05/06 ($ million) 1H/05 1H/04 % Change Total Revenue 146.0 132.5 + 10.2 Total Expenditure (149.6) (126.6) + 18.2 Operating Profit (3.6) 5.9 n.m. Net Profit (2.5) 2.8 n.m.
Slide 27: SilkAir Operating Performance
SILKAIR OPERATING PERFORMANCE – 1H FY05/06 1H/05 1H/04 % Change Overall Yield 131.0 127.2 + 3.0 (¢/ltk) Overall Unit Cost 70.1 65.1 + 7.7 (¢/ctk) Overall Breakeven 53.5 51.2 + 2.3 pts Load Factor (%)
Slide 28: SilkAir Operating Performance
SILKAIR OPERATING PERFORMANCE – 1H FY05/06 1H/05 1H/04 % Change Capacity + 10.0 Load Carried + 8.1 Overall Load 51.2 52.1 - 0.9 pt Factor (%) Overall Breakeven 53.5 51.2 + 2.3 pts Load Factor (%) Overall Load -2.3 pts 0.9 pt - 3.2 pts Factor Spread (%)
Slide 29: Outlook & Developments
» OUTLOOK & DEVELOPMENTS SINGAPORE AIRLINES y,
Slide 30: Outlook
OUTLOOK • Fuel Price • Forward Bookings • SIA Cargo • Tiger Airways
Slide 31: Group Fuel Hedging Full Year Position – FY05/06
GROUP FUEL HEDGING FULL YEAR POSITION – FY05/06 • Budgeted Uplift Volume (M BBL) 36 • Percentage Hedged (%) 51 • Weighted Average Hedged Price (USD/BBL) 64.58 • Average October 05 Fuel Price (USD/BBL) 77.27
Slide 32: SIA Cargo
SIA CARGO • 15th B747-400F delivered in Oct 05 • Add 2x weekly to Chicago via New Delhi, Bangalore and Copenhagen • Freight volume volatile but demand build up to pre X’mas peak
Slide 33: Tiger Airways
Tiger Airways • Share capital authorised $80.0M • SIA share @ 49% $39.2M • As at 30 Sep 05, since inception, SIA has paid up $ 8.0M
Slide 34: Passenger Network Development – 2H FY05/06
PASSENGER NETWORK DEVELOPMENT – 2H FY05/06 Planned Total Frequency increases (x weekly) (x weekly) • Bangalore + 2 5 • Hyderabad (shift of + 4 4 services from SilkAir A320 to SIA B777) Supplementary Services • Adelaide + 1 5 • Perth + 3 21 • Taipei + 3 17
Slide 35: Passenger Network Development – 2H FY05/06
PASSENGER NETWORK DEVELOPMENT – 2H FY05/06 Shift of services to SilkAir from 30 Oct 05 • Surabaya 14x weekly • Shenzhen 6x weekly
Slide 36: Singapore Airlines
SINGAPORE AIRLINES y,
Singapore Airlines — H1 FY2005-06 Earnings Presentation on 6ix