Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — H1 FY2016/17 Earnings Presentation
19 slides from Singapore Airlines's earnings presentation, Nov 4, 2016
Slide 1: Q2 & 1H FY2016/17 Results
SIA ANALYST/MEDIA BRIEFING Q2 & 1H FY2016/17 Results 4 November 2016 THE PARENT AIRLINE Q2 & 1H FY2016/17 RESULTS 1
Slide 2: Parent Airline Operating Performance
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE % % Q2 16/17 Change 1H 16/17 Change Available Seat-KM 29,884 -0.7 59,072 -0.9 (million) Revenue Pax-KM 24,027 -4.6 46,164 -3.2 (million) Passenger Load 80.4 -3.3 pts 78.1 -1.9 pts Factor (%) Slide 3 THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE % %
Slide 3: Operating Performance: 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 10.5 10.3 10.2 10.2 10.2 10.1 9.7 9.5 Apr May Ju
Slide 4: Load Factor and Parent Airline Results
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE (%) Passenger Load Factor 90 Breakeven Load Factor 85 82.7 81.9 -3.1 80.7 79.8 -0.9 -1.9 80 -0.2 78.4 79.6 79.6 79.8 80.0 -0.3 78.1 75 70 65 60 1H 12/13 1H 13/14 1H 14/15 1H 15/16 1H 16/17 Slide 7 THE PARENT AIRLINE COMPANY RESULTS Better/ Better/ Q2
Slide 5: Cost Composition and Fuel Expenditure
THE PARENT AIRLINE COMPANY COST COMPOSITION 1H FY16/17 ($’M) Handling Charges Staff Cost 452.5 824.8 AMO Costs (+8.7, +2.0%) (+47.2, +6.1%) 401.5 LPO* Charges (+34.5, +9.4%) 299.3 (+8.2, +2.8%) Aircraft Depreciation Passenger Costs and Lease 334.4 Rentals (-2.3, -0.7%) 924.1 (-19.5, -2.1%) Others 62
Slide 6: Unit Cost Analysis
THE PARENT AIRLINE COMPANY UNIT COST ANALYSIS (¢/ask) 10 8.6 8.0 8 3.3 Unit Fuel Cost 2.4 (-27.3%) 6 1.4 (+7.7%) 1.3 Unit Staff Cost 4 4.0 Unit Other Cost 4.2 (+5.0%) 2 0 1H FY15/16 1H FY16/17 Slide 11 SIA GROUP Q2 & 1H FY2016/17 RESULTS 6
Slide 7: Group Revenue and Expenditure
GROUP REVENUE ($ million) 4,000 1H 16/17 3,941 Revenue 3,900 3,845 $7,305M 3,800 3,733 3,709 3,700 Year-on-Year 3,654 3,651 $9M $273M 3,600 -0.1% -3.6% 3,500 Q1 Q2 Q3 Q4 Q1 Q2 FY15/16 FY16/17 Slide 13 GROUP EXPENDITURE ($ million) 3,800 1H 16/17 3,716 Expenditure 3,700 3,653 $7,003M 3,622 3,600 3,55
Slide 8: Group Operating Profit and Contribution
GROUP OPERATING PROFIT ($ million) 400 1H 16/17 Op Profit 288 $302M 300 193 200 153 129 Year-on-Year 111 109 100 $9M $62M -0.1% +25.8% 0 Q1 Q2 Q3 Q4 Q1 Q2 FY15/16 FY16/17 Slide 15 CONTRIBUTION TO GROUP OPERATING PROFIT 1H 16/17 1H 15/16 Change % Change Singapore Airlines 276 206 + 70 + 34.0 SilkAir
Slide 9: Group Profit Attributable to Owners of Parent
GROUP PROFIT ATTRIBUTABLE TO OWNERS OF PARENT ($ million) 400 1H 16/17 Net Profit 322 305 $322M 300 282 200 168 126 Year-on-Year 100 $9M $17M -0.1% +5.6% 0 1H 1H 1H 1H 1H FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 Slide 17 GROUP PROFIT ATTRIBUTABLE TO OWNERS OF PARENT ($ million) Lower dividends 550 fr
Slide 10: Per Share Data and Passenger Fleet Development
PER SHARE DATA 1H FY16/17 1H FY15/16 EBITDAR Per Share ($) 1.43 1.39 Earnings Per Share (¢) 27.2 26.1 Interim Dividend Per 9.0 10.0 Share (¢) At 30 Sep’16 At 31 Mar’16 Net Asset Value Per 11.20 10.96 Share ($) Slide 19 FLEET DEVELOPMENT – PASSENGER AIRLINES SIA SilkAir Scoot Tiger Airways Operating
Slide 11: Cargo Fleet and Group Capital Expenditure
FLEET DEVELOPMENT – SIA CARGO No. of Aircraft Operating Fleet as at 30 September 2016 9 OUT: 747-400F -2 Operating Fleet as at 31 March 2017 7 Slide 21 GROUP CAPITAL EXPENDITURE ($’million) FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 Aircraft 4,300 5,300 4,600 4,200 2,600 Other Assets 150 150 150 100 10
Slide 12: Group Fuel Hedging Position; Strategic Developments
GROUP FUEL HEDGING POSITION 2H FY2016/17 Jet Fuel Brent Percentage hedged (%) 29.3 3.0 Average hedged price (USD/BBL) 68 63 Slide 23 STRATEGIC DEVELOPMENTS 12
Slide 13: Challenges and Key Strategies
CHALLENGES 1 Global Economic Uncertainty 2 Geopolitical Concerns 3 Oil Price Volatility 4 Intense Competition Slide 25 KEY STRATEGIES Strengthening Premium Positioning Portfolio Multi-Hub New Business Opportunities Slide 26 13
Slide 14: Strengthening Premium Positioning: Products & Services
STRENGTHENING PREMIUM POSITIONING PRODUCTS & SERVICES SilverKris Lounges Upcoming opening in Bangkok (1Q 2017), featuring new open bar concept and signature screen Premium Economy Class Available on 24 destinations to date, on 6 A350, 19 A380 and 10 B777-300ER aircraft STRENGTHENING PREMIUM POSI
Slide 15: Strengthening Premium Positioning: A350 and Network
STRENGTHENING PREMIUM POSITIONING GAME-CHANGER Airbus A350-900 Boosts long-haul network expansion, with the introduction of non-stop flights to San Francisco and Dusseldorf Launch customer for the A350-900ULR, which will fly non-stop to New York and Los Angeles in 2018 Slide 29 STRENGTHENING PRE
Slide 16: New Destinations & Routes
NEW DESTINATIONS & ROUTES Manchester Dusseldorf San Francisco Seoul Los Angeles Houston Singapore Canberra Wellington Singapore Airlines Slide 31 PORTFOLIO NEW DESTINATIONS Dusseldorf Dalian Wuxi Zhengzhou Sapporo Athens Amritsar Jaipur Fuzhou Vientiane Luang Prabang Scoot Tigerair Canberra Wellingt
Slide 17: Portfolio: Group Destinations and Budget Aviation Holdings
PORTFOLIO The SIA Group serves 132 destinations in 36 countries Slide 33 PORTFOLIO Budget Aviation Holdings (BAH) BAH was formed on 18 May 2016, following the delisting of Tigerair Integration is ongoing, led by one CEO and with a common P&L Full integration under a single Scoot brand, with
Slide 18: Multi-Hub and New Revenue & Business Opportunities
MULTI-HUB Investments in strategic markets Complements and strengthens Singapore hub through synergies Taps into large and growing Indian market Complements SIA operations to the West 18 destinations and 13 A320s (7 A320s on order) Strong leisure travel market 7 destinations and 3 B777
Slide 19: Thank You
THANK YOU 19
Singapore Airlines — H1 FY2016/17 Earnings Presentation on 6ix