Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — H1 FY2007-08 Earnings Presentation

30 slides from Singapore Airlines's earnings presentation, Oct 31, 2007

  1. Slide 1: Half Year and 2nd Quarter FY2007-08 Financial Results

    Half Year and 2nd Quarter FY2007-08 Financial Results 31 October 2007

  2. Slide 2: The Parent Airline 1H FY2007-08 Results

    THE PARENT AIRLINE 1H FY2007-08 RESULTS

  3. Slide 3: Company Highlights – 1H FY07/08

    THE PARENT AIRLINE COMPANY HIGHLIGHTS – 1H FY07/08 Highlights of Company’s Performance „ Capacity growth (-1.0%) „ Passengers carriage (+2.6%) „ Passenger load factor 80.3% (+2.8% points) „ Passenger yield 11.7¢/pkm (+9.3%) „ Revenue $6,062 million (+10.6%) „ Unit cost 8.2¢/ask (+5.1%) „ Operating p

  4. Slide 4: Company Results – 1H FY07/08

    THE PARENT AIRLINE COMPANY RESULTS – 1H FY07/08 1H/07 1H/06 % Change Total Revenue 6,061.6 5,480.6 + 10.6 Total Expenditure (5,280.5) (5,112.5) + 3.3 Operating Profit 781.1 368.1 + 112.2

  5. Slide 5: Company Operating Performance – 1H FY07/08

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – 1H FY07/08 1H/07 1H/06 % Change Passenger Yield 11.7 10.7 + 9.3 (¢/pkm) Unit Cost 8.2 7.8 + 5.1 (¢/ask) Passenger 70.1 72.9 - 2.8 pts Breakeven Load Factor (%)

  6. Slide 6: Company Operating Performance – Capacity and Traffic

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – 1H FY07/08 (Billion KM) 60 Capacity (ASK) 55 1.0% ASK 50 Passenger Carriage (RPK) 45 PLF 80.3 77.5 2.6% 40 Pax. Load 35 RPK Factor (%) 2.8% pts 0 1H/06 1H/07

  7. Slide 7: Company Operating Performance – Load Factors

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – 1H FY07/08 1H/07 1H/06 % Change Passenger Load 80.3 77.5 + 2.8 pts Factor (%) Passenger 70.1 72.9 - 2.8 pts Breakeven Load Factor (%) Passenger Load 10.2 pts 4.6 pts + 5.6 pts Factor Spread (%)

  8. Slide 8: Company Operating Performance – Load Factor Trend

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – 1H FY07/08 (%) 84 Passenger Load Factor Breakeven Load Factor 80.3 80 77.5 76 74.3 73.9 72.9 72 70.1 69.2 68.7 68 64 60 1H/04 1H/05 1H/06 1H/07

  9. Slide 9: Company Operating Performance – Load Factor Spread

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – 1H FY07/08 (%) 84 Passenger Load Factor Breakeven Load Factor 80 76 +4.6 +10.2 72 +5.1 +5.2 68 64 60 1H/04 1H/05 1H/06 1H/07

  10. Slide 10: Company Cost Composition – 1H FY07/08

    THE PARENT AIRLINE COMPANY COST COMPOSITION – 1H FY07/08 Others 22.1% (+0.4% pt) Airport Handling Fuel 7.2% 36.4% (-0.2% pt) (-3.4% pts) AMO 7.8% (+1.4% pts) Aircraft Staff Depreciation & Rentals 16.5% 10.0% (-0.1% pt) (+1.9% pts)

  11. Slide 11: Company Fuel Expenditure – 1H FY07/08

    THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – 1H FY07/08 (USD million) 1,350 1,293 1,300 -7 -27 1,259 1,286 1,250 1,259 1,200 1,150 1,100 Lower Lower volume weighted 1,050 uplifted average fuel price 0 1H/06 Volume Price 1H/07

  12. Slide 12: Company Fuel Surcharge – 1H FY07/08

    THE PARENT AIRLINE COMPANY FUEL SURCHARGE – 1H FY07/08 (USD/BBL) (USD/PAX) 100 Fuel Price (USD/BBL) 70 Fuel Surcharge (USD/PAX) 95 65 90 92.4 60 90.4 85 86.6 55 84.7 80 50 80.6 75 77.8 45 43.5 43.2 44.0 70 40 41.5 40.7 65 37.5 35 60 30 1Q/06 2Q/06 3Q/06 4Q/07 1Q/07 2Q/07

  13. Slide 13: SIA Subsidiaries 1H FY2007-08 Results

    SIA SUBSIDIARIES 1H FY2007-08 RESULTS

  14. Slide 14: Subsidiaries Net Profit

    SUBSIDIARIES NET PROFIT – 1H FY07/08 ($ million) 1H/07 1H/06 % Change SIAEC Group 145.0 138.4 + 4.8 SATS Group 96.4 100.5 - 4.1 SIA Cargo 17.0 (36.3) n.m. SilkAir 9.4 2.5 n.m.

  15. Slide 15: SIA Group 1H FY2007-08 Results

    SIA GROUP 1H FY2007-08 RESULTS

  16. Slide 16: Group Revenue

    GROUP REVENUE – 1H FY07/08 ($ million) ($ million) 8,000 7,589 7,029 7,000 6,395 Group 5,779 Revenue 6,000 8.0% 5,000 4,000 4-Year CAGR + 7.1% 3,000 0 1H/04 1H/05 1H/06 1H/07

  17. Slide 17: Group Expenditure

    GROUP EXPENDITURE – 1H FY07/08 ($ million) ($ million) 8,000 7,000 6,607 6,496 Group 5,811 Expenditure 6,000 1.7% 5,156 5,000 4,000 4-Year CAGR + 6.4% 3,000 0 1H/04 1H/05 1H/06 1H/07

  18. Slide 18: Group Operating Profit

    GROUP OPERATING PROFIT – 1H FY07/08 ($ million) ($ million) 1,200 982 1,000 800 623 584 Operating 600 533 Profit 400 84.1% 200 0 1H/04 1H/05 1H/06 1H/07

  19. Slide 19: Contribution to Group Operating Profit

    CONTRIBUTION TO GROUP OPERATING PROFIT – 1H FY07/08 SIA Cargo Others 1.9% 2.5% SIA SIAEC (+7.2% pts) (-2.9% pts) $413.0 M 6.5% (-6.2% pts) SATS Group $3.7 M SATS SIAEC 9.5% $4.5 M (-8.7% pts) SIA Cargo SIA $47.3 M 79.6% (+10.6% pts)

  20. Slide 20: Group Operating Profit

    GROUP OPERATING PROFIT – 1H FY07/08 ($ million) ($ million) 1,400 1,200 1,093 -111 982 1,000 982 800 +560 +449 600 533 400 Higher loads Higher & improved expenditure 200 yields 0 1H/06 Operating Operating 1H/07 Revenue Expenditure

  21. Slide 21: Group Net Profit

    GROUP NET PROFIT – 1H FY07/08 ($ million) ($ million) 1,200 1,094 -75 1,000 -87 932 868 1,019 +449 +64 932 800 -223 600 645 400 Sale of Higher Lower Higher SIA operating surplus on tax & MI Building Profit disposal of 200 1H 06/07 aircraft & others 0 1H/06 Exceptional Operating Non-Ops Taxation & 1H

  22. Slide 22: Group Results

    GROUP RESULTS – 1H FY07/08 1H/07 1H/06 EBITDAR Per Share ($) 1.75 1.61 Earnings Per Share (¢) 74.7 70.8 Interim Dividend Per 20.0 15.0 Share (¢) At 30 Sep 07 At 31 Mar 07 Net Asset Value Per 11.65 12.11 Share ($)

  23. Slide 23: Looking Ahead

    LOOKING AHEAD

  24. Slide 24: Passenger Fleet Development – FY2007/08

    PASSENGER FLEET DEVELOPMENT – FY2007/08 No. of Aircraft Operating Fleet at 1 October 2007 92 Aircraft Deliveries „ Airbus A380-800 3 „ Boeing B777-300ER 4 Operating Fleet at 31 March 2008 99

  25. Slide 25: Group Capital Expenditure for Next 5 Years

    GROUP CAPITAL EXPENDITURE FOR NEXT 5 YEARS ($ million) FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 Aircraft 2,400 2,300 3,900 4,300 2,500 Other Assets 300 400 300 300 300 Total 2,700 2,700 4,200 4,600 2,800

  26. Slide 26: 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 October 07 47 „ Avg Hedged Price (USD/BBL - Jet Fuel) 88

  27. Slide 27: China Eastern Airlines (CEA) Rationale

    CHINA EASTERN AIRLINES (CEA) Rationale „ Long-term strategic investment „ Good network fit „ Direct participation in China’s growth

  28. Slide 28: China Eastern Airlines (CEA) Strategic Partnership

    CHINA EASTERN AIRLINES (CEA) Strategic Partnership „ Board and Management participation ‹ Two seats on the Board ‹ Senior SIA staff for key positions „ Commercial Partnership and Cooperation ‹ Twinning of Singapore and Shanghai hubs ‹ Codeshare on all Singapore and Shanghai services ‹ Joint marketin

  29. Slide 29: Outlook for 2nd Half

    OUTLOOK FOR 2nd HALF „ Uncertainty in global economy „ High fuel prices „ Competition

  30. Slide 30: Experience Travel in a New Light with Singapore Airlines A380 New Cabin Products

    EXPERIENCE TRAVEL IN A NEW LIGHT WITH SINGAPORE AIRLINES A380 NEW CABIN PRODUCTS

Singapore Airlines — H1 FY2007-08 Earnings Presentation on 6ix