Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — FY2015/16 Earnings Presentation

27 slides from Singapore Airlines's earnings presentation, May 13, 2016

  1. Slide 1: SIA Analyst/Media Briefing FY2015-16 Results

    SIA ANALYST/MEDIA BRIEFING FY2015-16 Results 13 May 2016 THE PARENT AIRLINE FY2015/16 RESULTS 1

  2. Slide 2: The Parent Airline Company Operating Performance FY2015/16

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2015/16 % % 4Q/15 Change 15/16 Change Available Seat-KM 29,026 -0.2 118,367 -1.4 (million) Revenue Pax-KM 22,788 +2.9 94,267 +0.1 (million) Passenger Load 78.5 +2.4 pts 79.6 +1.1 pts Factor (%) Slide 3 THE PARENT AIRLINE COMPANY OPERATING PERFORMA

  3. Slide 3: Results FY2015/16 Monthly Pax Yields

    THE PARENT AIRLINE COMPANY RESULTS – FY2015/16 Monthly Pax Yields (Including Fuel Surcharge) 12 ¢/pkm 2013-14 2014-15 2015-16 11.5 11.5 11.4 11.4 11.4 11.4 11.3 11.3 11.2 11.3 11.1 11.1 11.1 11.1 11.2 11 10.9 11.1 10.9 10.8 11.0 10.8 11.0 10.9 10.9 10.9 10.8 10.7 10.7 10.7 10.7 10.6 10.6 10.5 10.5 1

  4. Slide 4: Operating Performance and Results FY2015/16

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE % 90 Passenger Load Factor Breakeven Load Factor 85 82.0 80.7 80.2 80 -3.1 79.5 -0.6 -1.4 78.0 -1.0 -0.6 79.3 78.9 79.6 78.5 77.4 75 70 65 11/12 12/13 13/14 14/15 15/16 Slide 7 THE PARENT AIRLINE COMPANY RESULTS – FY2015/16 Better/ Better/ 4Q/15 (Wors

  5. Slide 5: Cost Composition FY2015/16

    THE PARENT AIRLINE COMPANY COST COMPOSITION – FY2015/16 Cost Composition ($M) Staff Costs Handling Charges 1,596.0 (+55.8, +3.6%) 889.6 (+13.4, +1.5%) AMO Costs 14.3% LPO* Charges 7.9% 750.9 (+95.2, +14.5%) 584.4 (-10.4, -1.7%) 6.7% 5.2% Passenger Costs 6.0% 669.9 (-6.8, -1.0%) Aircraft Depreciation

  6. Slide 6: Fuel Expenditure and Unit Cost Analysis FY2015/16

    THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – FY2015/16 $M Lower weighted average 5,000 fuel price 4,536 -973 Higher (-21.4%) 4,000 hedging +34 3,563 loss Stronger 0.6% US Dollar higher 3,000 volume +469 -1,682 +206 FY14/15 Price Exchange Hedging Volume FY15/16 Slide 11 THE PARENT AIRLINE COMPANY UN

  7. Slide 7: SIA Group Revenue and Expenditure FY2015/16

    SIA GROUP FY2015/16 RESULTS GROUP REVENUE – FY2015/16 FY14/15 FY15/16 Full Year ($ million) 4,099 Revenue 4,000 3,941 $15,228M 3,905 3,880 3,845 Year-on-Year 3,750 3,733 3,709 $338M 3,682 -2.2% 3,500 Q1 Q2 Q3 Q4 Slide 14 7

  8. Slide 8: Group Expenditure and Operating Profit FY2015/16

    GROUP EXPENDITURE – FY2015/16 Full Year ($ million) Expenditure FY14/15 FY15/16 4,000 3,953 $14,547M 3,788 Year-on-Year 3,773 3,716 $609M 3,750 3,653 -4.0% 3,642 3,622 3,556 3,500 Q1 Q2 Q3 Q4 Slide 15 GROUP OPERATING PROFIT – FY2015/16 ($ million) Full Year 800 Op Profit 681 $681M 600 Year-on-Year 4

  9. Slide 9: Contribution to Group Operating Profit; Group Net Profit

    CONTRIBUTION TO GROUP OPERATING PROFIT – FY2015/16 ($ million) 15/16 14/15 Change % Change Singapore Airlines 485 340 + 145 + 42.6 SIA Engineering 104 84 + 20 + 23.8 SIA Cargo (50) (22) - 28 - 127.3 SilkAir 91 41 + 50 + 122.0 Scoot 28 (67) + 95 n.m. Tiger Airways 14 (9) + 23 n.m. Slide 17 GROUP NET

  10. Slide 10: Profit Attributable to Owners; Fleet Development Passenger Airline

    GROUP PROFIT ATTRIBUTABLE TO OWNERS OF PARENT – FY2015/16 ($ million) No impairment of China Cargo Airlines this year: +64 1000 No remeasurement gain from Tiger consolidation this year: -120 +436 +89 -84 (+118.5%) Refund of -3 fines to +102 804 800 Higher SIA Share of Higher operating Cargo profits

  11. Slide 11: Fleet Development SIA Cargo; Group Capital Expenditure

    FLEET DEVELOPMENT – SIA CARGO No. of Aircraft Operating Fleet as at 31 March 2016 9 OUT: Decommissioned 747-400F -2 Operating Fleet as at 31 March 2017 7 Slide 21 GROUP CAPITAL EXPENDITURE FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 Aircraft 3,200 4,500 4,900 4,800 3,600 Other Assets 150 150 150 100 150

  12. Slide 12: Group Fuel Hedging Position; Dividends FY2015/16

    GROUP FUEL HEDGING POSITION Apr’16 to Mar’17 (FY2016-17) Jet Fuel Brent Percentage hedged (%) 25 6 Average hedged price (USD/BBL) 83 64 Apr’16 to Jun’16 (Q1 FY2016-17) Jet Fuel Brent Percentage hedged (%) 42 - Average hedged price (USD/BBL) 87 - Slide 23 DIVIDENDS – FY2015/16 15/16 14/15 Earnings Pe

  13. Slide 13: Strategic Developments

    STRATEGIC DEVELOPMENTS CHALLENGES 1 Global Economic Uncertainty 2 Oil Price Volatility 3 Intense Competition Slide 26 13

  14. Slide 14: Key Strategies: Strengthening Our Premium Positioning

    KEY STRATEGIES Strengthening our Premium Positioning Portfolio Multi-Hub New Business Opportunities Slide 27 STRENGTHENING OUR PREMIUM POSITIONING PRODUCTS & SERVICES  Premium Economy Class  Currently flying to 18 destinations  Available on A350-900, A380 & B777-300ER  IFE Companion App  Previe

  15. Slide 15: Strengthening Our Premium Positioning: Products & Services

    STRENGTHENING OUR PREMIUM POSITIONING PRODUCTS & SERVICES  SilverKris Lounges  New lounge concept introduced in Hong Kong, London, Manila and Sydney  Upcoming openings scheduled in Brisbane (May ‘16) and Bangkok (Oct ‘16)  ‘Deliciously Wholesome’ Meals  Served on selected flights departing from

  16. Slide 16: Premium Positioning: Network and Portfolio

    STRENGTHENING OUR PREMIUM POSITIONING NETWORK  Strengthening our key markets  New opportunities to grow European and US footprint  New Destinations  Dusseldorf (21 July ‘16)  Canberra & Wellington (20 Sept ‘16)  Expanding network and connectivity through partnerships  New Codeshare Agreements

  17. Slide 17: Privatisation of Tiger Airways

    PRIVATISATION OF TIGER AIRWAYS DELISTING COMPLETED ON 11 MAY 2016 Enables:  Seamless cooperation in all aspects of the business Commercial Network activities coordination  Full synergies within the SIA Group  Strengthening of benefits to SIA Group Portfolio Strategy Operational and  New profit g

  18. Slide 18: SIA and SilkAir serve 98 destinations

    SIA and SilkAir serve 98 destinations The SIA Group serves 122 destinations 18

  19. Slide 19: Multi-Hub

    MULTI-HUB  New growth engines in large and expanding markets  Synergies with Singapore hub  Large and growing market  16 destinations and 10 A320s (10 A320s on order)  Strong budget travel market  5 destinations and 3 B777-200s Slide 37 The SIA Group serves 122 destinations 19

  20. Slide 20: The SIA Group and Associates serve 176 destinations

    The SIA Group and its Associates serve 176 destinations 20

  21. Slide 21: Southeast Asia

    SOUTHEAST ASIA SIA serves 10 destinations Hanoi Yangon Manila Bangkok Ho Chi Minh City Kuala Lumpur Bandar Seri Begawan Jakarta Surabaya Denpasar-Bali Singapore Airlines Slide 41 SOUTHEAST ASIA SIA and SilkAir serve 36 destinations Luang Prabang Mandalay (from 31/10/16) Hanoi Chiang Mai Vientiane Ya

  22. Slide 22: Southeast Asia and Southwest Pacific

    SOUTHEAST ASIA The SIA Group serves 41 destinations Luang Prabang Mandalay (from 31/10/16) Hanoi Chiang Mai Vientiane Yangon (from 31/10/16) Da Nang Manila (Clark) Bangkok Manila (NAIA) Siem Reap (BKK/DMK) Phnom Penh Kalibo Krabi Ho Chi Minh City Cebu Ko Samui Phuket Hat Yai Davao Langkawi Penang Ip

  23. Slide 23: Southwest Pacific and China

    SOUTHWEST PACIFIC The SIA Group and Virgin Australia serve 48 destinations Christmas Island Darwin Proserpine Kununurra Cloncurry Cairns Broome Townsville Mount Isa Karratha Port Hedland Hamilton Island Moranbah Mackay Tonga Newman Alice Springs Rockhampton Emerald Gladstone Paraburdoo Bundaberg Her

  24. Slide 24: China and India

    CHINA The SIA Group serves 23 destinations Shenyang Beijing Tianjin Jinan Qingdao Xian Zhengzhou (from 28/6/16) Nanjing Wuxi Wuhan Shanghai Chengdu Chongqing Hangzhou Ningbo Changsha Lijiang Kunming Guangzhou Quanzhou Xiamen Nanning Shenzhen Haikou Singapore Airlines Scoot NokScoot Slide 47 SilkAir

  25. Slide 25: India

    INDIA The SIA Group serves 15 destinations Amritsar (from 24/5/16) New Delhi Lucknow Jaipur (from 2/10/16) Ahmedabad Kolkata Mumbai Vishakhapatnam Hyderabad Bangalore Chennai Coimbatore Kochi Tiruchirappalli Thiruvananthapuram Singapore Airlines Scoot Slide 49 SilkAir Tigerair INDIA The SIA Group an

  26. Slide 26: New Revenue & Business Opportunities

    NEW REVENUE & BUSINESS OPPORTUNITIES Expanding KrisFlyer Group Airlines KrisFlyer Airline Partners SQ/MI Star Alliance Scoot Others Tigerair Virgin Australia (Earn/Burn Vistara Airline (Conversion w VA partners wef Airlines Partners + Earn/Burn w Sep15) SQ/MI Star Alliance VA/Vistara) Others Expand

  27. Slide 27: Thank You

    THANK YOU 27

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