Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — FY19/20 Earnings Presentation
40 slides from Singapore Airlines's earnings presentation, May 15, 2020
Slide 1: Analyst / Media Briefing FY19/20 Results
ANALYST / MEDIA BRIEFING FY19/20 Results 15 May 2020 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 m
Slide 2: Presentation by Senior Vice President Finance
PRESENTATION BY: Senior Vice President Finance Mr. Stephen Barnes 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
Slide 3: Group Financial Results
Group Financial Results 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, distribu
Slide 4: Key Takeaways – FY19/20 Results
Group Financial Results Key Takeaways – FY19/20 Results ▪ Full year loss as COVID-19 pandemic crippled travel demand in the fourth quarter. ▪ Group passenger flown revenue declined y-o-y, as the gains from the first nine months were wiped out by the decline in the final quarter resulting from global
Slide 5: Operating Results for Q4 & FY19/20
Group Financial Results Operating Results for Q4 & FY19/20 Q4 Q4 Better/ Better/ FY19/20 FY18/19 (Worse) FY19/20 FY18/19 (Worse) ($’m) ($’m) (%) ($’m) ($’m) (%) Total Revenue 3,180.8 4,075.1 (21.9) 15,975.9 16,323.2 (2.1) Total Expenditure 3,983.3 3,821.6 (4.2) 15,916.8 15,256.1 (4.3) -- Net Fuel Co
Slide 6: Group Revenue Q4 & FY19/20
Group Revenue Q4 & FY19/20 Sharp fall in fourth quarter’s revenue negated the growth in first nine months $M 4,600 4,470.6 4,400 4,341.5 4,222.3 4,200 4,075.1 4,102.2 FY19/20 4,062.1 4,000 $15,975.9M 3,844.5 3,800 Year-on-Year 3,600 $347.3M 3,400 (-2.1%) 3,180.8 3,200 3,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 F
Slide 7: Group Revenue Breakdown FY19/20
Group Revenue Breakdown FY19/20 Decline in passenger flown revenue due to deterioration in Q4 pax traffic and yields Cargo and Mail 1,951.4 Pax Flown Revenue (-269.1, -12.1%) 12,870.7 (-152.6, -1.2%) 12.2% 80.5% Engineering Services 444.9 (-40.8, -8.4%) Other Pax Revenue 363.4 Others (+2.8, +0.8%) 3
Slide 8: Group Expenditure Q4 & FY19/20
Group Expenditure Q4 & FY19/20 Fuel hedging ineffectiveness drove up full year expenditure $M 4,100 4,009.2 4,022.1 3,983.3 3,953.9 3,902.2 3,900 FY19/20 3,829.2 3,821.6 $15,916.8M 3,700 3,651.4 Year-on-Year $660.7M (+4.3%) 3,500 3,300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY18/19 FY18/19 FY18/19 FY18/19 FY19/20
Slide 9: Group Expenditure Breakdown FY19/20
Group Expenditure Breakdown FY19/20 Fuel hedging ineffectiveness drove up full year expenditure Excluding fuel hedging ineffectiveness, Group expenditure would have fallen below last year’s level, as a result of capacity cuts during Q4 driving down variable costs, government support schemes and othe
Slide 10: Group Expenditure – Fuel Cost FY19/20
Group Expenditure – Fuel Cost FY19/20 Higher net fuel costs mainly due to hedging losses $M 4,800 +543.5 -75.9 +29.2 4,636.5 4,587.1 +49.4 -447.4 4,600 (+1.1%) Stronger Lower uplift USD against SGD 4,400 4,200 Lower 4,000 weighted Fuel hedging average fuel loss vs gain price 3,800 FY18/19 Price Hedg
Slide 11: Group Operating Profit Q4 & FY19/20
Group Operating Profit Q4 & FY19/20 Operating loss in fourth quarter due to drastic decline in revenue and ineffective fuel hedges $M % 600 8.9 10.0 10 5.7 6.2 448.5 5.0 4.9 5.0 400 387.6 6 FY19/20 193.1 232.9 253.5 200.0 213.1 2 Op. Profit 200 $59.1M 0 (2.0) $1,008.0M (6.0) (-94.5%) (200) (10.0) (4
Slide 12: Group Operating Profit FY19/20
Group Operating Profit FY19/20 Operating loss in FY19/20 mainly due to decline in revenue and fuel hedging ineffectiveness $M 1,200 1,067.1 -152.6 +63.8 -220.0 1,000 -269.1 +253.3 -1,008.0 Lower AMO (-94.5%) Lower pax costs -49.4 800 flown -709.8 revenue Higher +43.2 depreciation Higher net Lower an
Slide 13: Operating Results for the Main Companies in the Group
Operating Results for the Main Companies in the Group Q4 & FY19/20 Q4 Q4 Better/ Better/ Operating (Loss)/Profit FY19/20 FY18/19 (Worse) FY19/20 FY18/19 (Worse) ($’m) ($’m) (%) ($’m) ($’m) (%) SIA (Parent Airline (583.4) 203.6 n.m. 294.2 990.5 (70.3) Company) (100.1) 10.6 n.m. (112.3) 15.2 n.m. Silk
Slide 14: Full Year Group Net Loss
Full Year Group Net Loss Weaker Operating Performance and Increase in Net Finance Charges $M Lower 800 operating profit 682.7 -1,008.0 600 -894.7 (n.m.) 400 Higher • Higher share of losses 200 Tax credit vs of assocs (-27.7) net tax expense finance • Higher share of profits last year charges# of JVs
Slide 15: SIA Group Per Share Data
SIA Group Per Share Data FY19/20 FY18/19 EBITDA per share(1) ($) 1.86 2.01 Basic (Loss)/Earnings per share(2) (¢) (17.9) 57.7 Dividend per share (¢) 8.0 30.0 As at 31 Mar’20 As at 31 Mar’19 Net Asset Value per share(3) ($) 7.86 11.22 (1) Based on Loss/Profit before Taxes, Finance Charges, Depreciati
Slide 16: Key Coverage Ratios
Key Coverage Ratios Ratios affected by the adoption of IFRS 16 Leases from 1 Apr’19 Leverage Interest coverage Total Debt(1) / EBITDA(2) EBIT / Interest expense (3) 6.00 10.00 5.34x 8.48x 4.00 2.80x 5.00 2.00 0.00x 0.00 0.00 As at 31 As at 31 FY18/19 FY19/20 Mar'19 Mar'20 (1) Total Debt = Borrowings
Slide 17: Additional Update
Additional Update 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, r
Slide 18: Group Capital Expenditure
Group Capital Expenditure Lower capital expenditure for FY20/21 compared to last guidance as SIA undertakes steps to conserve cash ▪ Against the backdrop of a collapse in travel demand due to Covid-19 pandemic, SIA Group has deferred non- aircraft projects ▪ Fleet renewal programme remains an import
Slide 19: Presentation by Chief Executive Officer
PRESENTATION BY: Chief Executive Officer Mr. Goh Choon Phong 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
Slide 20: Impact of COVID-19, Response, Getting Ready for Restart, The New World
1 Impact of COVID-19 2 Response to COVID-19 3 Getting Ready for Restart 4 The New World 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
Slide 21: Impact of COVID-19
IMPACT OF COVID-19 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,
Slide 22: Strong Operating Track Record and Historical Financial Position Prior to COVID-19
Strong Operating Track Record and Historical Financial Position Prior to COVID-19 Transformation Programme Enabled Us To Be On The Right Trajectory Strong operating track record and historical financial position ▪ Unbroken track record of profitability through past cyclical and unexpected downturns
Slide 23: Successful Mobilisation of Our Organisation to Drive Tangible Results
Successful Mobilisation of Our Organisation to Drive Tangible Results Transformation Programme Enabled Us To Be On The Right Trajectory Successful mobilisation of our organisation to drive tangible results (3-year) Personalisation >300,000 use cases/ services rendered Customer cases >12M hrs NPS Sco
Slide 24: COVID-19: Greatest Challenge In Aviation History
COVID-19: Greatest Challenge In Aviation History Sudden and Severe Impact On Global Airline Industry And SIA Group COVID-19 crippled SIA’s passenger operations Significant decrease in international capacity due to COVID-19 ▪ Progressive flight cuts across the network, ▪ Major airlines globally have
Slide 25: Response to COVID-19
RESPONSE TO COVID-19 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
Slide 26: Response to COVID-19: Decisive Capacity Cuts
Response to COVID-19 Decisive Capacity Cuts Across The Network In Response To Deterioration In Global Air Travel Demand Passenger operations remain curtailed by Maintain minimum scheduled services travel restrictions Limited flight network as scheduled passenger capacity of SIA Group Minimum Connect
Slide 27: Response to COVID-19: Cargo Efforts
Response to COVID-19 Cargo Efforts Initiatives implemented to increase cargo capacity Ensuring supply chain continuity Prior to COVID-19*: Cargo-only passenger flights provide Working with various government incremental cargo capacity and network agencies to keep airfreight supply lines 22% reach to
Slide 28: Response to COVID-19: Customers
Response to COVID-19 Customers Procedures in place for care and safety of pax Customer servicing and handling 468 volunteers from across the Company Modified in-flight Distancing in line bolstered handling capacity to handle surge in service & procedures with regulations customer enquiries Customer
Slide 29: Response to COVID-19: Staff
Response to COVID-19 Staff SIA Group Ambassador Programme Using the downtime to upskill staff Many staff volunteered to support nationwide efforts • Virtual classroom courses; online learning on SKIES & as Care Ambassadors, Transport Ambassadors, LinkedIn Learning Contact Tracing Ambassadors, and So
Slide 30: Strong Government support for SIN aviation hub
Response to COVID-19 Strong Government support for SIN aviation hub Strong Government support for SIN aviation hub • Job Support Scheme: 75% wage offset for each local worker in employment • Cost relief (e.g. rebates on landing and parking charges, rental relief) for airlines, ground handlers and ca
Slide 31: Steps Taken to Manage Liquidity and Cash Requirements
Response to COVID-19 Steps Taken to Manage Liquidity and Cash Requirements Decisive capacity cuts across the Deferred non-essential network in response to expenditure projects & imposed deterioration in global air travel tight controls on discretionary demand expenditure Cuts in Management salaries
Slide 32: S$8.8B Rights Issue
Response to COVID-19 Rights Issue – raising capital through the issuance of Rights Shares and Rights MCBs Building Liquidity and Financial Flexibility to Capture Strengthening Balance Sheet Future Growth Opportunities S$8.8B • The Rights Issue will bolster equity in the Rights Issue • Address near-t
Slide 33: Getting Ready for Restart
GETTING READY FOR RESTART 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, distri
Slide 34: Restart Taskforce (RTF) Workgroups with Parallel Workstreams
Restart Taskforce (RTF) 4 Workgroups with Parallel Workstreams RTF formed to plan and coordinate 4 Workgroups to spearhead Scale of Operations Travel Gov + Health Experience Ops readiness crew, staff, pax end-to-end journey Mode of Operations Transversal ops that meets regulatory & business License,
Slide 35: Post-COVID: A New World
POST-COVID: A NEW WORLD 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, distribu
Slide 36: Post-COVID: A New World
Post-COVID: A New World Shaped by changing trends and customer expectations A new world for travel & aviation is being shaped by changing trends and customer expectations Uncertainty on Consumer Behavior Business travel Aviation Airline Competitive recovery & Customer Value trends Ecosystem Landscap
Slide 37: A New Transformation Chapter
Post-COVID: A New World A New Transformation Chapter This is an opportunity to strengthen our position as a global aviation leader. PRE POST NEW NORMS BEING SHAPED IN THE PROCESS COVID COVID The copyright in this material (other than in respect of information from external sources) is owned by Singa
Slide 38: A New Transformation Chapter: Near-Term and Medium-to-Longer-Term
Post-COVID: A New World A New Transformation Chapter Near-Term Organisation Productivity & Effectiveness Enhance human capital Redouble efforts to increase Upskill our people, by taking advantage of organisational productivity & effectiveness this downtime, to enhance human capital Medium-to- Leader
Slide 39: Position of Strength to Capture Future Growth Opportunities
Post-COVID: A New World A New Transformation Chapter Position of Strength to Capture Future Growth Opportunities Strong and Strong Strong Talented and Committed Trusted Brand Balance Sheet Digital Capabilities Staff Emerging Stronger and Fitter PLAN FOR RESTART LEAD THE NEW WORLD ✓ Flexible and agil
Slide 40: 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