Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — FY2006-07 Earnings Presentation

38 slides from Singapore Airlines's earnings presentation, May 11, 2007

  1. Slide 1: Media/Analyst Presentation FY2006-07 Results

    MEDIA/ANALYST PRESENTATION FY2006-07 RESULTS 11 MAY 2007

  2. Slide 2: SIA Group FY2006-07 Results

    SIA GROUP FY2006-07 RESULTS

  3. Slide 3: Group Revenue – FY2006/07

    GROUP REVENUE – FY2006/07 ($ million) ($ million) 15,000 14,494 14,000 13,341 13,000 Record 12,013 Revenue 12,000 8.6% 11,000 10,515 10,000 9,762 9,000 5-Year CAGR 8,000 + 8.4% 0 2003 2004 2005 2006 2007

  4. Slide 4: Group Expenditure – FY2006/07

    GROUP EXPENDITURE – FY2006/07 ($ million) ($ million) 15,000 14,000 13,180 13,000 Group 12,128 Expenditure 12,000 8.7% 11,000 10,696 10,000 9,798 9,093 9,000 5-Year CAGR 8,000 + 7.7% 0 2003 2004 2005 2006 2007

  5. Slide 5: Group Operating Profit – FY2006/07

    GROUP OPERATING PROFIT – FY2006/07 ($ million) ($ million) 1,600 1,400 1,317 1,314 1,213 Operating 1,200 Profit 1,000 8.3% 800 717 669 600 5-Year CAGR 400 + 16.4% 200 0 2003 2004 2005 2006 2007

  6. Slide 6: Group Operating Profit – FY2006/07

    GROUP OPERATING PROFIT – FY2006/07 ($ million) ($ million) 3,000 2,500 +1,153 -677 2,000 -375 1,500 1,314 1,213 101 1,000 Higher loads Higher Higher 500 & improved fuel spend costs yields ex-fuel 0 2006 Operating Fuel Ex-Fuel 2007 Revenue Expenditure Expenditure

  7. Slide 7: Group Fuel Expenditure – FY2006/07

    GROUP FUEL EXPENDITURE – FY2006/07 ($ million) ($ million) 6,000 4,917 5,000 Fuel 4,240 Expenditure 4,000 16.0% 3,000 2,693 2,000 1,865 1,811 5-Year CAGR + 27.4% 1,000 0 2003 2004 2005 2006 2007

  8. Slide 8: Group Ex-Fuel Expenditure – FY2006/07

    GROUP EX-FUEL EXPENDITURE – FY2006/07 ($ million) ($ million) 10,000 8,003 8,263 7,933 7,888 8,000 7,282 Ex-Fuel Expenditure 6,000 4.8% 4,000 5-Year CAGR 2,000 + 1.0% 0 2003 2004 2005 2006 2007

  9. Slide 9: Contribution to Group Operating Profit – FY2006/07

    CONTRIBUTION TO GROUP OPERATING PROFIT – FY2006/07 110 Others 100 4.9% 5.8% SIA SIAEC 7.8% 90 11.1% 24.5% pts 11.7% 80 SATS 15.2% Percentage (%) 70 SIA Cargo 60 16.8% pts 50 53.6% SIA 78.1% SATS Group 40 3.5% pts 30 20 SIAEC 10 14.3% 3.3% pts 0 -2.5% 2006 SIA Cargo 2007 -10

  10. Slide 10: Group Net Profit – FY2006/07

    GROUP NET PROFIT – FY2006/07 ($ million) ($ million) 2,500 +247 2,129 2,000 +421 888 +119 1,500 +101 1,241 1,000 Higher Surplus on Sale of Tax operating disposal SIA Building writeback profit of Aircraft & SALE 500 & Others 0 2006 Operating Non-Op Exceptional Tax 2007 Profit Surpluses Items Writebac

  11. Slide 11: The Parent Airline FY2006-07 Results

    THE PARENT AIRLINE FY2006-07 RESULTS

  12. Slide 12: The Parent Airline Company Highlights – FY2006/07

    THE PARENT AIRLINE COMPANY HIGHLIGHTS – FY2006/07 Highlights of Company’s Performance „ Capacity growth (+2.8%) „ Passengers carriage (+7.7%) „ Passenger load factor 79.2% (+3.6% points) „ Passenger yield 10.9¢/pkm (+2.8%) „ Record revenue $11,344 million (+10.1%) „ Unit cost 7.9¢/ask (+5.3%) „ Reco

  13. Slide 13: The Parent Airline Company Results – FY2006/07

    THE PARENT AIRLINE COMPANY RESULTS – FY2006/07 2006-07 2005-06 % Change Total Revenue 11,343.9 10,302.8 + 10.1 Total Expenditure (10,316.9) (9,651.8) + 6.9 Operating Profit 1,027.0 651.0 + 57.8

  14. Slide 14: The Parent Airline Company Operating Performance – FY2006/07

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2006/07 2006-07 2005-06 % Change Passenger Yield 10.9 10.6 + 2.8 (¢/pkm) Unit Cost 7.9 7.5 + 5.3 (¢/ask) Passenger 72.5 70.8 + 1.7 pts Breakeven Load Factor (%)

  15. Slide 15: The Parent Airline Company Operating Performance – FY2006/07

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2006/07 (Billion KM) 120 Capacity (ASK) 110 2.8% ASK 100 Passenger Carriage (RPK) 90 79.2 PLF 7.7% 75.6 80 Pax. Load RPK Factor (%) 3.6% pts 0 2006 2007

  16. Slide 16: The Parent Airline Company Operating Performance – FY2006/07

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2006/07 2006-07 2005-06 % Change Passenger Load 79.2 75.6 + 3.6 pts Factor (%) Passenger 72.5 70.8 + 1.7 pts Breakeven Load Factor (%) Passenger Load 6.7 pts 4.8 pts + 1.9 pts Factor Spread (%)

  17. Slide 17: The Parent Airline Company Operating Performance – FY2006/07

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2006/07 (%) 82 Passenger Load Factor 80 Breakeven Load Factor 78 76 6.7 74 0.9 0.5 4.8 72 4.8 70 68 66 64 62 60 2003 2004 2005 2006 2007

  18. Slide 18: The Parent Airline Company Cost Composition – FY2006/07

    THE PARENT AIRLINE COMPANY COST COMPOSITION – FY2006/07 Others 22.6% (-0.8% pt) Sales Costs Fuel 6.0% 37.6% (-0.7% pt) (+2.7% pts) Airport Handling 7.3% (-0.3% pt) Aircraft Staff Depreciation & Rental 16.3% 10.2% (-0.9% pt)

  19. Slide 19: The Parent Airline Company Cost Analysis – FY2006/07

    THE PARENT AIRLINE COMPANY COST ANALYSIS – FY2006/07 $3,881 M Fuel (+15.2%) $1,686 M Staff (+7.3%) Depr, Rentals & $1,050 M Carrying Costs (-2.2%) 2006-07 $753 M 2005-06 Airport Handling (+2.7%) $620 M Sales (-4.1%) $2,327 M Others (+3.0%) 0 1000 2000 3000 4000 5000 ($ million)

  20. Slide 20: The Parent Airline Company Fuel Cost – FY2006/07

    THE PARENT AIRLINE COMPANY FUEL COST – FY2006/07 (USD/BBL) ($ million) 100 7,000 90 84.40 6,000 76.26 80 70 5,000 3,881 60 54.58 (+15.2%) 4,000 50 3,368 37.91 3,000 40 34.51 2,148 30 2,000 1,523 1,416 20 1,000 10 0 0 2003 2004 2005 2006 2007

  21. Slide 21: SIA Subsidiaries FY2006-07 Results

    SIA SUBSIDIARIES FY2006-07 RESULTS

  22. Slide 22: Subsidiaries Net Profit – FY2006/07

    SUBSIDIARIES NET PROFIT – FY2006/07 ($ million) 2006-07 2005-06 % Change SIAEC Group 242.1 230.6 + 5.0 SATS Group 178.2 188.6 - 5.5 SIA Cargo 30.6 135.3 - 77.4 SilkAir 19.8 20.6 - 3.9

  23. Slide 23: Looking Ahead

    LOOKING AHEAD

  24. Slide 24: Looking Ahead

    LOOKING AHEAD „ Fuel Hedging Position „ Capital Expenditure „ Airbus A380 „ Fleet Development

  25. Slide 25: Group Fuel Hedging Position – FY2007/08

    GROUP FUEL HEDGING POSITION – FY2007/08 „ Budgeted Uplift Volume (M BBL) 37 „ Hedging Target (%) 45 +/- 15 „ Percentage Hedged (%) at May 07 42 „ Avg Hedged Price (USD/BBL - Jet Fuel) 84

  26. Slide 26: Group Capital Expenditure for Next 5 Years

    GROUP CAPITAL EXPENDITURE FOR NEXT 5 YEARS ($ million) FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 Aircraft 1,800 2,300 3,500 4,800 4,500 Other Assets 600 500 500 300 300 Total 2,400 2,800 4,000 5,100 4,800

  27. Slide 27: Airbus A380-800 – FY2007/08

    AIRBUS A380-800 – FY2007/08 „ 1st unit delivery October 2007, into commercial service in November 2007 to Sydney „ 2nd and 3rd units delivery January and February 2008 for London route

  28. Slide 28: Passenger Fleet Development – FY2007/08

    PASSENGER FLEET DEVELOPMENT – FY2007/08 „ Operating Fleet at 1 April 2007 94 „ Aircraft Deliveries ‹ Airbus A380-800 3 ‹ Boeing B777-300ER 5 „ Aircraft Sold Off ‹ Boeing B747-400 5 „ Operating Fleet at 31 March 2008 97

  29. Slide 29: Dividends

    DIVIDENDS

  30. Slide 30: Dividends – FY2006/07

    DIVIDENDS – FY2006/07 2006-07 2005-06 Earnings Per Share (¢) 172.6 101.7 Interim Dividend Per Share Paid (¢) 15.0 10.0 Proposed Final Dividend Per Share (¢) 35.0 35.0 Total Ordinary Dividend Per Share (¢) 50.0 45.0

  31. Slide 31: Special Dividend – FY2006/07

    SPECIAL DIVIDEND – FY2006/07 Monetization of Non-Core Assets „ Sale of SIA Building and of 35.5% stake in Singapore Aircraft Leasing Enterprise „ Total proceeds $852 Million Proposed Special Dividend „ 50¢ per share, approximately $625 Million „ 73% of proceeds

  32. Slide 32: Total Dividends – FY2006/07

    TOTAL DIVIDENDS – FY2006/07 2006-07 2005-06 Total Ordinary Dividend Per Share (¢) 50.0 45.0 Proposed Special Dividend Per Share (¢) 50.0 Nil Total Dividends Per Share (¢) 100.0 45.0

  33. Slide 33: Proposed Capital Reduction

    PROPOSED CAPITAL REDUCTION

  34. Slide 34: Proposed Capital Reduction Objectives

    PROPOSED CAPITAL REDUCTION Objectives „ Make capital structure more efficient „ Improve ROE „ Ensure adequate funding for operations and investments

  35. Slide 35: Proposed Capital Reduction: Distribution by Cancellation of Shares

    PROPOSED CAPITAL REDUCTION Distribution to shareholders by cancellation of shares1 „ 1 share cancelled for every 15 shares held „ Cash distribution $18.46 per share cancelled2 „ Approximately $1,537 million3 1. Subject to court approval 2. Price based on average SGX closing price between 2 May and 8

  36. Slide 36: Proposed Capital Reduction Features & Benefits

    PROPOSED CAPITAL REDUCTION Features & Benefits „ All shareholders receive cash „ Proportion of ownership after completion remain unchanged „ Improve EPS

  37. Slide 37: Proposed Capital Reduction Features & Benefits

    PROPOSED CAPITAL REDUCTION Features & Benefits „ Alternatives to be made available for odd lots, rounded up to nearest normal trading lot „ Details forthcoming

  38. Slide 38: Singapore Airlines Limited

    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

Singapore Airlines — FY2006-07 Earnings Presentation on 6ix