Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — FY2016/17 Earnings Presentation

19 slides from Singapore Airlines's earnings presentation, May 19, 2017

  1. Slide 1: SIA Analyst/Media Briefing Q4 and FY2016/17 Results

    SIA ANALYST/MEDIA BRIEFING Q4 and FY2016/17 Results 19 May 2017 THE PARENT AIRLINE Q4 AND FY16/17 RESULTS 1

  2. Slide 2: The Parent Airline Company Operating Performance

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Q4 % % FY16/17 Change FY16/17 Change Available Seat-KM 28,852 -0.6 117,662 -0.6 (million) Revenue Pax-KM 23,265 +2.1 92,914 -1.4 (million) Passenger Load 80.6 +2.1 pts 79.0 -0.6 pt Factor (%) Slide 3 THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Q4

  3. Slide 3: Operating Performance: Monthly Passenger Yields and Unit Costs

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Monthly Pax Yields (Including Fuel Surcharge) FY14/15 FY15/16 FY16/17 (¢/pkm) 11.5 11.4 11.4 11.4 11.4 11.5 11.5 11.2 11.1 11.0 11.0 10.9 10.9 10.9 10.8 10.7 10.7 10.6 10.7 10.7 10.5 10.5 10.5 10.4 10.6 10.6 10.5 10.3 10.3 10.3 10.3 10.2 10.2 10.2 10.

  4. Slide 4: Load Factor and Parent Airline Results

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE (%) Passenger Load Factor 85 Breakeven Load Factor 82.0 80.7 80.4 -3.1 80.2 80 -1.4 79.5 -0.6 -1.4 -1.0 79.6 79.3 79.0 78.9 78.5 75 70 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 Slide 7 THE PARENT AIRLINE COMPANY RESULTS Q4 Better/ Better/ FY16/17 (Worse

  5. Slide 5: Cost Composition and Fuel Expenditure

    THE PARENT AIRLINE COMPANY COST COMPOSITION FY16/17 ($’M) Handling Charges Staff Cost 911.1 1,672.7 AMO Costs (+21.5, +2.4%) (+76.7, +4.8%) 784.7 (+33.8, +4.5%) LPO* Charges 603.2 15.6% 7.3% 8.5% Aircraft (+18.8, +3.2%) 5.7% 17.3% depreciation and Lease Rentals Passenger Costs 6.3% 1,854.0 669.7 (-6

  6. Slide 6: Unit Cost Analysis

    THE PARENT AIRLINE COMPANY UNIT COST ANALYSIS (¢/ask) 10 8.5 8.2 8 Unit Fuel Cost 2.5 (-16.7%) 3.0 6 Unit Staff Cost 1.4 (-) 1.4 4 2 4.1 Unit Other Cost 4.3 (+4.9%) 0 FY15/16 FY16/17 Slide 11 SIA GROUP Q4 AND FY2016/17 RESULTS 6

  7. Slide 7: Group Revenue and Group Expenditure

    GROUP REVENUE ($ million) FY15/16 FY16/17 4,000 FY16/17 3,941 Revenue 3,900 $14,869M 3,845 3,844 3,800 Year-on-Year 3,733 3,720 3,720 $370M 3,700 3,654 3,651 -2.4% 3,600 3,500 Q1 Q2 Q3 Q4 Slide 13 GROUP EXPENDITURE ($ million) FY15/16 FY16/17 3,800 FY16/17 3,716 Expenditure 3,692 3,700 $14,246M 3,65

  8. Slide 8: Group Operating Profit and Contribution by Company

    GROUP OPERATING PROFIT ($ million) 800 FY16/17 700 681 Op Profit 623 600 $623M 500 410 Year-on-Year 400 $58M 300 259 -8.5% 229 200 100 0 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 Slide 15 CONTRIBUTION TO GROUP OPERATING PROFIT ($ million) FY16/17 FY15/16 Change % Change Singapore Airlines 386 485 - 99

  9. Slide 9: Group Profit Attributable to Owners of Parent

    GROUP PROFIT ATTRIBUTABLE TO OWNERS OF PARENT ($ million) 1,000 FY16/17 Net Profit 804 800 $360M 600 Year-on-Year $444M 379 400 359 368 360 -55.2% 200 0 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 Slide 17 GROUP PROFIT ATTRIBUTABLE TO OWNERS OF PARENT Cargo’s ($ million) competition- 900 related matters

  10. Slide 10: Fleet Development and Group Capital Expenditure

    FLEET DEVELOPMENT SIA SilkAir BAH SIA Cargo Operating Fleet as at 31 March 2017 106 30 35 7 IN: A380-800 +2 A350-900 +10 737 MAX 8 +4 787-8 +4 A320 +3^ OUT: A380-800 -4 A330-300 -2 777-200 -2 777-200ER -1 A320 -2 Operating Fleet as at 31 March 2018 109 34 40 7 ^ These were A320s subleased to IndiGo

  11. Slide 11: Group Fuel Hedging Position and Dividends FY16/17

    GROUP FUEL HEDGING POSITION Q1 FY17/18 Jet Fuel Brent Percentage hedged (%) 39.3 - Average hedged price (USD/BBL) 65 - FY17/18 Jet Fuel Brent Percentage hedged (%) 20.6 20.0 Average hedged price (USD/BBL) 66 53 Maturities Up To 2022 Jet Fuel Brent Percentage hedged (%) - 40-45 Average hedged price (

  12. Slide 12: SIA Cargo Update

    SIA CARGO UPDATE RE-INTEGRATION OF SIA CARGO  SIA Cargo to be re-integrated as a Division within SIA  Business restructuring arising from structural changes to the air freight market  No change to Cargo operations – SIA remains committed to operating fleet of dedicated freighters  Overall cargo

  13. Slide 13: Strategic Developments

    STRATEGIC DEVELOPMENTS KEY STRATEGIES Strengthening Premium Positioning Portfolio Multi-Hub New Business Opportunities Slide 26 13

  14. Slide 14: Strengthening Premium Positioning

    STRENGTHENING PREMIUM POSITIONING 777-9 & 787-10  LOI signed for 20 777-9 & 19 additional 787-10 aircraft A350-900  Enables non-stop service to San Francisco and new destinations (Dusseldorf & Stockholm)  A350-900ULR non-stop service to USA in 2018 New Cabin Products  End 2017 – New A380 ground-

  15. Slide 15: Strengthening Premium Positioning: Partnerships and Portfolio

    STRENGTHENING PREMIUM POSITIONING Partnerships to Grow Our Network  31 codeshare partners providing access to 223 offline destinations through 10,077 weekly frequencies (+19% YoY)  Drives more passenger traffic through SIA’s network and Changi hub  JV partners help anchor SIA’s presence on key ro

  16. Slide 16: Portfolio: New Destinations

    PORTFOLIO NEW DESTINATIONS Stockholm Dusseldorf Dusseldorf Dalian Wuxi Zhengzhou Sapporo Athens Amritsar Jaipur Fuzhou Vientiane Luang Prabang Scoot Tigerair Canberra Wellington SilkAir Singapore Airlines Slide 31 PORTFOLIO The SIA Group serves 133 destinations in 37 countries Slide 32 16

  17. Slide 17: Multi-Hub and New Revenue & Business Opportunities

    MULTI-HUB  Investments in strategic markets  Complements and strengthens Singapore hub through synergies  19 destinations and 13 A320s (7 A320s on order)  Strategically placed to tap into the large and growing Indian market  Preparing to launch international operations  7 destinations and 3 B7

  18. Slide 18: Transformation: Where We Are

    WHERE WE ARE  Key elements of first phase of transformation now in place  Initiatives showing positive results, positioning us well for future amid structural change  With this foundation in place, it is timely to move to the next phase of transformation Slide 35 TRANSFORMATION 18

  19. Slide 19: Our Game Plan / Thank You

    Our Game Plan  To continue operating a sustainable business, we need to take bold actions to address both revenue & cost.  We are doing so from a position of strength, having put in place foundation pieces in core areas  A Transformation Office has been set up to drive this effort Network and Fle

Singapore Airlines — FY2016/17 Earnings Presentation on 6ix