Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — Q1 FY2018-19 Earnings Presentation

26 slides from Singapore Airlines's earnings presentation, August 2018

  1. Slide 1: SIA Group Financial Results for Q1 FY2018-19

    SIA GROUP FINANCIAL RESULTS For Q1 FY2018-19 Ended 30 June 2018 197200078R

  2. Slide 2: Operating Result

    SIA GROUP Q1 FY2018-19 Operating Result Q1 Q1 Better/ Q1 Better/ FY18/19 FY17/18R1 (Worse) FY17/18R2 (Worse) ($M) ($M) (%) ($M) (%) Total Revenue 3,844 3,864 (0.5) 3,689 4.2 Total Expenditure 3,651 3,459 (5.6) 3,459 (5.6) -- Net fuel cost 1,080 926 (16.6) 926 (16.6) Fuel cost 1,212 900 (34.7) 900 (3

  3. Slide 3: Group Revenue

    SIA GROUP Q1 FY2018-19 Group Revenue $M 4,000 3,864 3,844 3,800 Q1 FY18/19 $3,844M 3,600 Year-on-Year 3,400 $20M (-0.5%) 3,200 3,000 Q1 FY17/18 Q1 FY18/19 Slide 3

  4. Slide 4: Group Revenue (ex Q1 FY17/18 One-Offs)

    SIA GROUP Q1 FY2018-19 Group Revenue (ex Q1 FY17/18 One-Offs) $M 4,000 3,844 3,800 Q1 FY18/19 175 $3,844M 3,600 Year-on-Year 3,400 3,689 $155M (+4.2%) 3,200 3,000 Q1 FY17/18 Q1 FY18/19 Adjusted for one-offs from KrisFlyer breakage rate and compensation for changes in aircraft delivery slots in Q1 FY

  5. Slide 5: Revenue Breakdown

    SIA GROUP Q1 FY2018-19 Revenue Breakdown ($M) Passenger Flown Revenue 3,061.1 (+148.2, +5.1%) Cargo and Mail 533.5 (+30.1, +6.0%) 79.6% Passenger Other Revenue 105.9 (-108.2, -50.5%) Engineering Services Others 109.3 34.7 (-19.2, -14.9%) (-70.6, -67.0%) Slide 5

  6. Slide 6: Group Expenditure

    SIA GROUP Q1 FY2018-19 Group Expenditure $M 3,800 3,651 3,600 Q1 FY18/19 124 $3,651M 3,400 Year-on-Year 3,200 3,459 $192M (+5.6%) 3,000 Q1 FY17/18 Q1 FY18/19 Restatement for Q1 FY17/18 due to adoption of IFRS Slide 6

  7. Slide 7: Cost Composition

    SIA GROUP Q1 FY2018-19 Cost Composition ($M) Depreciation and AMO Costs Lease Rentals 254.7 492.5 Handling Charges (+17.1, +7.2%) (+4.4, +0.9%) 328.9 (-2.0, -0.6%) Staff Cost 657.6 7.0% 13.5% (+7.6, +1.2%) LPO* Charges 9.0% 215.9 (+5.2, +2.5%) 5.9% 18.0% 4.8% Passenger Costs 176.7 (-4.3, -2.4%) 12.2

  8. Slide 8: Composition of Increase in Fuel Cost

    SIA GROUP Q1 FY2018-19 Composition of Increase in Fuel Cost $M (After Hedging) Higher weighted Hedging 1,400 average fuel gain price versus 1,300 +359 loss Weaker USD 1,200 against Higher SGD uplift 1,100 -158 +15 1,080 -62 +154 1,000 (+16.6%) 926 900 800 Q1 FY17/18 Price Hedging Exchange Volume Q1

  9. Slide 9: Group Operating Profit

    SIA GROUP Q1 FY2018-19 Group Operating Profit $M % 1,000 12 Q1 FY18/19 10.5 Op. Profit 10 800 $193M $212M 8 600 (-52.3%) 405 6 5.0 400 4 Operating 193 Profit Margin 200 2 5.5% pts 0 0 Q1 FY17/18 Q1 FY18/19 Slide 9

  10. Slide 10: Group Operating Profit (ex Q1 FY17/18 One-Offs)

    SIA GROUP Q1 FY2018-19 Group Operating Profit (ex Q1 FY17/18 One-Offs) % $M 1,000 12 Q1 FY18/19 Op. Profit 10 800 $193M $37M 8 600 (-16.1%) 6.2 6 5.0 400 175 4 Operating 193 Profit Margin 200 230 2 1.2% pts 0 0 Q1 FY17/18 Q1 FY18/19 Slide 10

  11. Slide 11: Composition of Decrease in Operating Profit

    SIA GROUP Q1 FY2018-19 Composition of Decrease in Operating Profit $M Higher Absence of one-offs from: 700 cargo flown • KrisFlyer breakage revenue (-115) Higher Lower revenue • Compensation for changes in pax flown engineering Higher revenue +30 revenue net fuel delivery slots (-60) 600 +148 costs

  12. Slide 12: Group Operating Profit by Company

    SIA GROUP Q1 FY2018-19 Group Operating Profit Q1 Q1 Better/ Better/ FY18/19 FY17/18R1 (Worse) (Worse) ($M) ($M) ($M) (%) SIAR2 181 370 (189) (51.1) SIA Engineering 10 19 (9) (47.4) SilkAir - 8 (8) (100) Scoot 1 3 (2) (66.7) R1 Restated due to the adoption of IFRS R2 Adjusted prior year comparatives

  13. Slide 13: Group Net Profit

    SIA GROUP Q1 FY2018-19 Group Net Profit $M 400 338 300 Q1 FY18/19 Net Profit $140M 200 $198M 140 (-58.6%) 100 0 Q1 FY17/18 Q1 FY18/19 Slide 13

  14. Slide 14: Group Net Profit (ex Q1 FY17/18 One-Offs)

    SIA GROUP Q1 FY2018-19 Group Net Profit $M (ex Q1 FY17/18 One-Offs) 400 300 Q1 FY18/19 145 Net Profit $140M 200 $53M 140 (-27.5%) 100 193 0 Q1 FY17/18 Q1 FY18/19 Adjusted for one-offs post-tax Slide 14

  15. Slide 15: Group Profit Attributable to Owners of the Parent

    SIA GROUP Q1 FY2018-19 Group Profit Attributable to Owners of the Parent $M 400 Lower operating 338 profit 300 -198 (-58.6%) 200 Higher net finance +35 140 charges -7 100 -212 -14 Lower taxation 0 Q1 FY17/18 Operating Net Interest Taxation Others Q1 FY18/19 profit Slide 15

  16. Slide 16: Parent Airline Company Q1 FY2018-19

    PARENT AIRLINE COMPANY Q1 FY2018-19

  17. Slide 17: Parent Airline Company (Pax)

    PARENT AIRLINE COMPANY (PAX) Q1 FY2018-19 Q1 Q1 Change FY18/19 FY17/18 % Available Seat-KM (M) 29,783.9 28,962.9 2.8 Revenue Passenger-KM (M) 24,429.0 23,176.1 5.4 Passenger Load Factor (%) 82.0 80.0 2.0 pts Pax Yield (¢/pkm) 10.0 10.1 (1.0) Revenue per available seat-km 8.2 8.1 1.2 (¢/ask) Passenge

  18. Slide 18: Parent Airline Company (Pax): Monthly Pax Yields

    PARENT AIRLINE COMPANY (PAX) Q1 FY2018-19 Monthly Pax Yields 11 ¢/pkm 2016/17 2017/18 2018/19 10.7 10.7 10.5 10.5 10.4 10.4 10.4 10.4 10.6 10.3 10.3 10.3 10.3 10.2 10.1 10.1 10.1 10.3 10.2 10.2 10.2 10.2 10.2 10 10.1 9.8 10.0 9.8 9.7 9.5 9 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Slide 18

  19. Slide 19: Parent Airline Company (Cargo)

    PARENT AIRLINE COMPANY (CARGO) Q1 FY2018-19 Q1 Q1 Change FY18/19 FY17/18 % Cargo Capacity Tonne-KM (M) 2,801.7 2,713.9 3.2 Cargo Load Tonne-KM (M) 1,721.3 1,783.2 (3.5) Cargo Load Factor (%) 61.4 65.7 (4.3) pts Cargo Yield (¢/ltk) 31.0 28.2 9.9 Cargo Unit Cost (¢/ctk) 16.1 16.7 (3.6) Cargo Unit Ex-f

  20. Slide 20: Parent Airline Company (Cargo): Monthly Cargo Yields

    PARENT AIRLINE COMPANY (CARGO) Q1 FY2018-19 Monthly Cargo Yields 35 ¢/ltk 2016/17 2017/18 2018/19 34.1 34 33 32.3 31.8 32 31 30.6 30.6 30.2 29.9 29.8 30 29.1 29.1 30.2 29.9 28.8 29.6 29 28.6 28.2 28.1 27.8 28 27.5 26.9 27.0 28.1 26.7 27.6 27.7 27 26.5 26.6 26 25 Apr May Jun Jul Aug Sep Oct Nov Dec J

  21. Slide 21: Parent Airline Company Operating Result

    PARENT AIRLINE COMPANY Q1 FY2018-19 Operating Result Q1 Q1 Better/ Q1 Better/ FY18/19 FY17/18R1 (Worse) FY17/18R2 (Worse) ($M) ($M) (%) ($M) (%) Total Revenue 3,093 3,149 (1.8) 2,974 4.0 Total Expenditure 2,912 2,779 (4.8) 2,779 (4.8) -- Net fuel cost 884 772 (14.5) 772 (14.5) Fuel cost 991 749 (32.

  22. Slide 22: Parent Airline Company Cost Composition

    PARENT AIRLINE COMPANY Q1 FY2018-19 Cost Composition ($M) Staff Cost Handling Charges 449.2 295.4 (+10.7, +2.4%) LPO* Charges (-10.9, -3.6%) 168.7 AMO Costs (+0.9, +0.5%) 209.4 (-7.2, -3.3%) 10.2% 15.4% 5.8% 7.2% 7.2% 5.8% Aircraft Passenger Costs depreciation and 160.3 5.5% 12.5% Lease Rentals (-6.

  23. Slide 23: Passenger Cost Analysis

    PARENT AIRLINE COMPANY Q1 FY2018-19 Passenger Cost Analysis ¢/ask 9 8.0 8.2 8 7 2.44 Unit Fuel Cost 2.76 (+13.1%) 6 5 1.43 Unit Staff Cost 1.43 (-) 4 3 2 4.11 3.97 (-3.4%) Unit Other Cost 1 0 Q1 FY17/18 Q1 FY18/19 Slide 23

  24. Slide 24: Cargo Cost Analysis

    PARENT AIRLINE COMPANY Q1 FY2018-19 Cargo Cost Analysis ¢/ctk 18 16.7 16.1 16 14 5.53 Unit Fuel Cost 5.81 (+5.1%) 12 0.86 10 Unit Staff Cost 0.86 (-) 8 6 10.35 9.38 (-9.4%) 4 Unit Other Cost 2 0 Q1 FY17/18 Q1 FY18/19 Slide 24

  25. Slide 25: Fuel Hedging Update

    FUEL HEDGING UPDATE Remaining 9 months of FY18/19 Jet Fuel Brent Percentage hedged (%) 21.8 24.5 Average hedged price (USD/BBL) 65 54 Maturities Up To FY22/23 Jet Fuel Brent Percentage hedged (%) - Up to 46% Average hedged price (USD/BBL) - 55-58 Slide 25

  26. Slide 26: Thank You

Singapore Airlines — Q1 FY2018-19 Earnings Presentation on 6ix