Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — H1 FY2023/24 Earnings Presentation
47 slides from Singapore Airlines's earnings presentation, Nov 8, 2023
Slide 1: SIA Group Analyst/Media Briefing 1H FY23/24 Results
SIA Group Analyst/Media Briefing 1H FY23/24 Results (Ended 30 September 2023) 8 November 2023 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from ext
Slide 2: Presentation by Chief Financial Officer
PRESENTATION BY: Chief Financial Officer Ms. JoAnn Tan The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This material may not be
Slide 3: Group Financial Results: Key Takeaways
Group Financial Results Key Takeaways 1H FY2023/24 Highest ever half-year operating profit of $1,553.8 million, up 25.9% YoY Passenger revenue rose $1,570.5 million on the back of a strong summer peak Cargo revenue fell $1,038.9 million as demand for air freight continued to soften Lower fuel
Slide 4: Group Operating Statistics
Group Operating Statistics Group passenger capacity expected to reach an average of ~92% of pre-Covid levels in December 2023 ASK CTK Overall CTK 1H (YoY) 1H (YoY) 1H (YoY) +29.0% +8.9% +19.9% Q2 (YoY) Q2 (YoY) Q2 (YoY) +26.0% +6.0% +17.0% Pax Capacity - ASK (million) Cargo Capacity - CTK (million)
Slide 5: Group Financial Results
Group Financial Results 1H 1H Better/ Better/ Q2 Q2 Better/ Better/ FY23/24 FY22/23 (Worse) (Worse) FY23/24 FY22/23 (Worse) (Worse) ($’M) ($’M) ($’M) (%) ($’M) ($’M) ($’M) (%) Total Revenue 9,162.4 8,416.5 745.9 8.9 4,683.0 4,488.3 194.7 4.3 Total Expenditure 7,608.6 7,182.1 (426.5) (5.9) 3,883.7 3,
Slide 6: Group Revenue
Group Revenue 1H FY23/24: Robust passenger demand for air travel continued into the Northern Summer travel season Group Revenue ($'M) Strong rebound in pax traffic, Record growth led by North Asia Quarterly following full border re-opening Full Revenue for China, Japan, Hong Kong re-opening of 4,846
Slide 7: Group Operating Statistics - Passenger
Group Operating Statistics - Passenger 1H FY23/24: RASK and PLF remained elevated above pre-Covid levels PLF (%) 1H FY23/24 RASK 100 Record RASK: 9.6¢/ask (₵/ask) Quarterly PLF: 88.8% Group RASK Record Q2 FY23/24 12 10.6 Quarterly Group PLF RASK: 9.6¢/ask PLF: 88.6% 10 90 88.9 8 FY19/20 Group RASK (
Slide 8: SIA and Scoot Operating Statistics - Passenger
SIA and Scoot Operating Statistics - Passenger 1H FY23/24: Both SIA and Scoot achieved record high half-yearly PLFs FSC: SIA Operating Statistics LCC: Scoot Operating Statistics 1H FY23/24 1H FY23/24 RASK: 10.7¢/ask RASK: 6.2¢/ask PLF: 88.0% PLF: 91.3% Record Quarterly RASK Record RASK Q2 FY23/24 PL
Slide 9: Group Operating Statistics - Cargo
Group Operating Statistics - Cargo 1H FY23/24: Cargo yields continued to soften, albeit still above pre-Covid levels CLF (%) 1H FY23/24 Cargo Yield Yield: 41.8¢/ltk (₵/ltk) 100 CLF: 52.7% Q2 FY23/24 80 90 Yield: 39.2¢/ltk CLF: 53.5% 70 80 60 70 50 60 FY19/20 CLF (59.3%) 40 50 FY19/20 Yield (30.5¢/lt
Slide 10: Group Expenditure
Group Expenditure 1H FY23/24: Increase in non-fuel expenditure from capacity increase, partially offset by lower fuel cost Group Expenditure ($'M) 4,091.4 1H FY23/24 3,810.3 3,809.2 3,724.9 3,883.7 $7,608.6M 3,371.8 1H (YoY) 2,387.1 2,758.3 2,628.8 2,654.0 $426.5M 2,671.5 2,099.1 YoY (+11.2%) (+5.9%
Slide 11: Group Expenditure
Group Expenditure 1H FY23/24: Increase in non-fuel expenditure from capacity increase, partially offset by lower fuel cost Depreciation & Leased Handling Charges Aircraft Charges Landing, Parking & $571.8M $1,025.4M Overflying Charges (+$134.1M, +30.6%) (+$24.5M, +2.4%) Staff Costs $393.4M (+$86.6M,
Slide 12: Net Fuel Cost and Fuel Hedging
Net Fuel Cost and Fuel Hedging Decrease in fuel cost largely driven by lower fuel prices, partially offset by higher uplift and lower hedging gain Group Fuel Cost Analysis ($'M) +565.9 -1,076.7 2,695.9 +173.1 -75.1 -$412.8M Higher 2,283.1 (-15.3%) uplift Lower Lower Weakening of weighted hedging gai
Slide 13: Fuel Hedging Status
Fuel Hedging Status Group has hedges in place up to Q1 FY25/26, with additional gains locked in from closed-out trades Fuel Hedging Position Percentage Average (as at 27 October 2023) Hedged Hedged Price (%) (USD/BBL) Brent MOPS Brent MOPS Q3 – Q4 FY23/24 10 26 78 93 Q1 FY24/25 – Q1 FY25/26 8
Slide 14: Group Operating Profit
Group Operating Profit 1H FY23/24: Record half-year operating profit Group Operating Profit ($'M) Record Quarterly Op Profit 1H FY23/24 799.3 $1,553.8M 755.0 754.5 702.7 678.0 1H (YoY) 556.4 $319.4M (+25.9%) Q2 (YoY) $121.3M (+17.9%) Q1 Q2 Q3 Q4 Q1 Q2 FY22/23 FY22/23 FY22/23 FY22/23 FY23/24 FY23/24
Slide 15: Group Operating Profit (YoY progression)
Group Operating Profit (YoY progression) Higher pax revenue and lower net fuel cost, partially offset by lower cargo revenue and higher non-fuel expenditure Group Operating Profit ($'M) Lower cargo +1,570.5 revenue Largely: Higher +412.8 Higher inflight • Foreign exchange gain vs staff costs Higher
Slide 16: Operating Results for the Main Companies of the Group
Operating Results for the Main Companies of the Group 1H 1H Better/ Better/ Q2 Q2 Better/ Better/ FY23/24 FY22/23 (Worse) (Worse) FY23/24 FY22/23 (Worse) (Worse) ($’M) ($’M) ($’M) (%) ($’M) ($’M) ($’M) (%) Full-service carrier 1,512.2 1,308.4 203.8 15.6 774.7 684.1 90.6 13.2 Low-cost carrier 58.2 (4
Slide 17: Group Net Profit
Group Net Profit 1H FY23/24: Record half-year net profit Group Net Profit ($'M) Record Quarterly Net Profit 734.0 707.1 1H FY23/24 628.0 $1,441.1M 601.9 556.5 1H (YoY) $514.2M 370.4 (+55.5%) Q2 (YoY) $150.6M (+27.1%) Q1 Q2 Q3 Q4 Q1 Q2 FY22/23 FY22/23 FY22/23 FY22/23 FY23/24 FY23/24 Slide 17 The copy
Slide 18: Group Net Profit (YoY progression)
Group Net Profit (YoY progression) YoY improvement driven by higher operating profit, net interest income vs net finance charges last year, share of profits of associated companies vs losses last year and partially offset by higher tax expenses Group Net Profit ($'M) Higher tax +86.6 expenses +221.9
Slide 19: Group Financial Results: Interim Dividend
Group Financial Results Interim Dividend of 10 cents per share 1H FY23/24 1H FY22/23 Earnings Per Share (cents) - Basic R1 31.2 14.4 - Adjusted Basic R2 48.5 31.2 - Diluted R3 30.4 14.2 EBITDA ($’M) R4 3,009.6 2,315.9 EBITDA margin (%) R5 32.8 27.5 Dividend Per Share (cents) 10.0 10.0 - Interim R1 E
Slide 20: Group Financial Position
Group Financial Position As at 30 September 2023 As at 31 March 2023 Total assets ($’M) 46,658.0 49,101.2 Total debt ($’M) 14,662.6 15,339.3 Total cash and bank balances ($’M) 13,489.2 16,327.6 Total liabilities ($’M) 28,924.1 28,851.4 Equity attributable to Owners of the Company ($’M) 17,333.1 19,8
Slide 21: Redemption of Mandatory Convertible Bonds (MCBs)
Redemption of Mandatory Convertible Bonds (MCBs) Redemption of 50% of the remaining MCBs issued in June 2021, on 26 December 2023 1H FY23/24 1H FY23/24 Proforma After Redemption Principal Earnings Per Share (cents) - Basic R1 31.2 35.7 Amount - Adjusted Basic R2 48.5 No change ($1,549.2 mil) - Dilut
Slide 22: Group Operating Fleet Development
Group Operating Fleet Development The Group’s operating fleet will expand to 201 aircraft by the end of FY23/24 Operating Fleet As at 30 September 2023 In Out As at 31 March 2024 SIA 777-300ER 23 -1 22 A380-800 12 12 A350-900 63 63 787-10 19 +3R1 22 737-800 7 7 737-8 16 16 747-400F 7 7 Total 147 +3
Slide 23: Projected Group Capital Expenditure
Projected Group Capital Expenditure Projected Capital Expenditure FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 ($’M) Aircraft 1,900 3,100 4,000 3,800 3,100 Others 400 300 300 300 300 Total 2,300 3,400 4,300 4,100 3,400 Slide 23 The copyright in this material (other than in respect of information from ext
Slide 24: Presentation by Chief Executive Officer
PRESENTATION BY: Chief Executive Officer Mr. Goh Choon Phong Slide 24 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This mate
Slide 25: Handling Covid Challenges, Emerging Stronger, Strengthening Foundation
1 Handling Covid Challenges 2 Emerging Stronger 3 Strengthening Foundation for the Future Slide 25 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information fro
Slide 26: Handling Covid Challenges
Handling Covid Challenges Slide 26 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This material may not be modified, reproduce
Slide 27: An unprecedented challenge in the SIA Group history
An unprecedented challenge in the SIA Group history 16,000.0 SIA Group Passenger 4,000 Capacity (ASK’m) 3.4m pax carried 14,000.0 SIA Group Passengers in Jan20 3,500 Carried (‘000) 12,000.0 3,000 Number of passengers carried ('000) Available seat-kilometres ('millions) 10,000.0 2,500 Dropped to 3% c
Slide 28: Handling Covid Challenges: Our three priorities
Handling Covid Challenges Our three priorities Boost Care for Preserve Liquidity Customers Core Capabilities Announced Rights Issue to raise up to Honouring ticket refunds to affected Our people are our most valuable asset $15B in liquidity as early as 26 Mar 2020 customers, despite the cash b
Slide 29: Emerging Stronger
Emerging Stronger First Off the Blocks Retain Industry Leadership Slide 29 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This
Slide 30: Emerging Stronger: Our vision was clear
Emerging Stronger Our vision was clear from the onset of Covid First Off the Blocks Retain Industry Leadership Communicated organisation-wide “Lead the New World” Transformation since March 2020 launched in April 2020 Slide 30 The copyright in this material (other than in respect of information from
Slide 31: First Off the Blocks: Operational Readiness
First Off the Blocks Ensuring we lead the pack when travel recovery eventually occurs Upskill and Reskill Operational Readiness 100% UPLIFT programme to equip staff with future skills 75% > 90% aircraft and crew resources, even at 51% pre- Covid capacity 50% courses taken 25% average training days
Slide 32: Sustained lead against regional competitors
First Off the Blocks We continue to reap the benefits of our efforts over the past three years Sustained lead against our regional competitors 100% 83% 80% +11%pts %Capacity vs Pre-covid (Jan20) 72% 60% 57% 40% +40%pts 20% 17% AAPA (w/o SIA Grp) SIA Grp 0% Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 O
Slide 33: Retain Industry Leadership: Lead the New World
Retain Industry Leadership Lead the New World Embarking on a three-year transformation programme, constant investments throughout the pandemic Business Process improvement initiatives in monthly average number ideas generated by staff of automated production to support our deployments Man-hours save
Slide 34: FY22/23 Record Full Year Results
Retain Industry Leadership We continue to reap the benefits of our efforts over the past three years FY 22/23 Revenue Average Operating Net Profit PLF Profit $17,775M 85.4% $2,692M $2,157M Record Full Year Results for the SIA Group Slide 34 The copyright in this material (other than in respect of in
Slide 35: 1H FY23/24 Record First-Half Performance
Retain Industry Leadership We continue to reap the benefits of our efforts over the past three years 1H FY 23/24 Revenue Average Operating Net Profit PLF Profit $9,162M 88.8% $1,554M $1,441M $745M YoY 5.8%pts YoY $320M YoY $514M YoY Record First-Half Performance for SIA Group Slide 35 The copyright
Slide 36: Public and industry affirmation of our successes
Retain Industry Leadership Public and industry affirmation of our successes Top 50 Most Admired Company World’s Best Airline Airline of the Year Fortune Magazine, 2023 Skytrax, 2023 Air Transport World, 2023 SkillsFuture Employer (Gold), Most Attractive Employer, SkillsFuture, 2023 Randstad, 2023 Sl
Slide 37: Who Made It Possible?
Who Made It Possible? Customers Shareholders SG Government Aviation Ecosystem Partners Our People Slide 37 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the informa
Slide 38: Strengthening Foundation for the Future
Strengthening Foundation for the Future Slide 38 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This material may not be modif
Slide 39: The three pillars of our Brand Promise
Strengthening Foundation for the Future The three pillars of our Brand Promise Service Excellence Product Leadership Active crew hiring – on track to hire 2,800 crew in FY23/24 First airline to offer free unlimited Wi-Fi to customers across all cabin classes and virtually across the entire Usi
Slide 40: Portfolio strategy
Strengthening Foundation for the Future Portfolio strategy Asia China (23 points) SQ 6 unique destinations TR 16 unique destinations SQ+TR 1 common point Southeast Asia (35 points) SQ 6 unique destinations Scoot enables the Group to participate directly in the low- TR 18 unique destinations cost t
Slide 41: Partnerships and multi-hub strategy
Strengthening Foundation for the Future Partnerships and multi-hub strategy Commercial Partnerships Air India and Vistara Codesharing with 34 partner airlines, connecting to over 250 additional destinations, beyond pre-Covid connectivity All Nippon Airways Lufthansa Group Scandinavian Airlines Unite
Slide 42: New revenue streams and SIA Ecosystem
Strengthening Foundation for the Future Generate new revenue streams and expand the SIA Ecosystem New Business Greater non-air opportunities for customers to earn and burn miles 7.7M KrisFlyer members as of 30 Sep 23: +36% YoY growth >$600M revenue: +37% vs 1H FY2022/23 Core Business >80% gene
Slide 43: Sustainability
Strengthening Foundation for the Future Sustainability Net Zero by 2050 Our Buildings SIA’s average fleet age less than half of industry Installation of solar panels at SIA Supplies Centre in Jul23 average: more fuel efficient is expected to reduce 388 tonnes of CO2 emissions in one year 20-mo
Slide 44: Digital capability
Strengthening Foundation for the Future Digital capability DELIVER BUSINESS VALUE TO THE SIA GROUP THROUGH DIGITAL INNOVATION 1,955 2,424 Digital ideas initiated by Start-up team s engaged staff 374 57 P OCs com pleted/ P rototypes com pleted I m plem ented Generative AI More than 90 use cases acr
Slide 45: Challenging environment
Challenging environment As the airline industry landscape evolves, we must continue to be nimble Intensifying Climate change Cost pressures Macroeconomic Geopolitical competition uncertainty tensions Slide 45 The copyright in this material (other than in respect of information from external sources)
Slide 46: We are well positioned for the future
We are well positioned for the future Portfolio and Partnerships Multi-hub New Business Strong Brand Sustainability Financial Strength Digital Capabilities Talented People Slide 46 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airli
Slide 47: Thank You
Thank You The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This material may not be modified, reproduced, distributed, republish
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