Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — H1 FY2021/22 Earnings Presentation
43 slides from Singapore Airlines's earnings presentation, Nov 12, 2021
Slide 1: SIA Group Analysts/Media Briefing 1H FY21/22
SIA Group Analysts/Media Briefing 1H FY21/22 (ended 30 September 2021) 12 November 2021 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 2: Presentation by Executive Vice President Finance & Strategy
PRESENTATION BY: EXECUTIVE VICE PRESIDENT FINANCE & STRATEGY MR. TAN KAI PING 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. T
Slide 3: Key Takeaways – 1H FY21/22 Results
Group Financial Results Key Takeaways – 1H FY21/22 Results 1H net loss of $837 million, an improvement of $2,630 million YoY (+75.9%), driven by: ▪ Better operating performance ($1,244 million) ▪ Absence of $1,449 million aircraft impairment charges taken last year 1H operating loss of $619 million,
Slide 4: Group Operating Statistics
Group Operating Statistics Calibrated capacity recovery continues % vs Pre-Covid (Jan’20) ASK 70.0% 62.8% 1H YoY 60.0% 56.8% 5.4x Q2 vs Q1 49.3% 50.0% 47.4% 43.6% +21.5% 41.3% 38.7% 37.9% 40.0% 31.1% 32.2% 30.0% 26.7% 26.5% 21.2% 20.0% 16.5% 19.6% Overall CTK 13.6% 1H YoY 10.0% 3.8% 7.1% +125.9% 0.0
Slide 5: Group Financial Results
Group Financial Results 1H 1H Better/ Better/ Q2 Q1 Better/ Better/ FY21/22 FY20/21 (Worse) (Worse) FY21/22 FY21/22 (Worse) (Worse) ($’M) ($’M) ($’M) (%) ($’M) ($’M) ($’M) (%) Total Revenue 2,826.9 1,634.4 1,192.5 73.0% 1,532.5 1,294.4 238.1 18.4% Total Expenditure 3,446.3 3,497.3 51.0 1.5% 1,877.5
Slide 6: Group Revenue
Group Revenue Growth driven by improvement in passenger flown revenue and strong cargo performance Group Revenue ($’M) 1H FY21/22 1,532.5 $2,826.9M 1,294.4 1,114.8 YoY 1,066.7 $1,192.5M 850.6 783.8 (+73.0%) QoQ $238.1M (+18.4%) Q1 Q2 Q3 Q4 Q1 Q2 FY20/21 FY20/21 FY20/21 FY20/21 FY21/22 FY21/22 Slide
Slide 7: Group Revenue
Group Revenue Growth driven by higher passenger flown revenue and strong cargo performance Revenue Breakdown from Key Contributors (% vs pre-Covid Q3 FY19/20^) Revenue Breakdown for 1H FY21/22 Record 1,200 High Pax Flown Revenue 191.0% 1,000 26.6% $752.9M 167.6% Cargo & (+$597.6M, n.m.) Mail 800 138
Slide 8: Group Expenditure
Group Expenditure YoY improvement in 1H driven by the absence of hedging ineffectiveness and FV gain vs loss on fuel derivatives Group Expenditure ($’M) 1,887.4 1,877.5 1H FY21/22 $3,446.3M YoY 1,609.9 1,568.8 $51.0M 1,433.6 (-1.5%) 1,397.5 QoQ $308.7M (+19.7%) Q1 Q2 Q3 Q4 Q1 Q2 FY20/21 FY20/21 FY20
Slide 9: Group Expenditure (Adjusted)
Group Expenditure On an adjusted basis, expenditure up due to higher net fuel costs and higher non-fuel costs with more flying Group Expenditure ($’M) – Adjusted (Excluded fuel hedging ineffectiveness and fair value gain/loss on fuel derivatives) 1,884.5 1H FY21/22 $3,525.1M 1,632.2 1,640.6 YoY 1,54
Slide 10: Group Expenditure
Group Expenditure Higher net fuel cost and non-fuel expenditure on increased flying activities 1H FY21/22 $3,525.1M YoY $591.4M (+20.2%) ^ Based on group expenditure excluding fuel hedging ineffectiveness and fair value gain or loss on fuel hedging derivatives Slide 9 The copyright in this material
Slide 11: Net Fuel Cost 1H FY21/22
Net Fuel Cost 1H FY21/22 Net fuel cost up due to higher fuel prices and volume uplifted, partially mitigated by hedging gain and forex Group Fuel Cost Analysis ($’M) +436.3 -209.4 -36.0 810.2 Hedging Weaker +243.3 gain vs USD loss against +$434.2M Higher SGD (+115.5%) weighted 376.0 average fuel pri
Slide 12: Group Operating Loss
Group Operating Loss Operating loss for 1H reduced YoY, but higher QoQ Group Operating Loss ($’M) 1H FY21/22 -$619.4M -318.8 -274.4 YoY -330.8 -345.0 $1,243.5M (+66.8%) -826.1 QoQ -1,036.8 $70.6M (-25.7%) Q1 Q2 Q3 Q4 Q1 Q2 FY20/21 FY20/21 FY20/21 FY20/21 FY21/22 FY21/22 Slide 11 The copyright in thi
Slide 13: Group Operating Loss (Underlying)
Group Operating Loss (Underlying) Underlying operating loss for 1H reduced YoY, but marginally higher QoQ Underlying Group Operating Loss ($’M) (Excluded fuel hedging ineffectiveness and FV gain/loss on fuel derivatives) 1H FY21/22 -$698.2M YoY $601.1M -346.2 -352.0 (+46.3%) -481.8 -517.4 -573.1 QoQ
Slide 14: Group Operating Loss
Group Operating Loss Operating loss narrowed mainly on improvement in flown revenue and absence of fuel hedging ineffectiveness Group Operating Loss ($’M) +180.6 +461.8 +635.1 FV gain -197.4 -619.4 vs loss last year Largely: • Higher landing, +597.6 -434.2 Absence of fuel parking & +$1,243.5M hedgin
Slide 15: Operating Results for the Main Companies of the Group
Operating Results for the Main Companies of the Group All major entities recorded lower losses YoY 1H 1H Better/ Better/ Q2 Q1 Better/ Better/ FY21/22 FY20/21 (Worse) (Worse) FY21/22 FY21/22 (Worse) (Worse) ($’M) ($’M) $M (%) ($’M) ($’M) $M (%) Full-service carrier* (386.5) (1,424.7) 1,038.2 72.9 (2
Slide 16: Group Net Loss
Group Net Loss Net losses significantly lower YoY but slightly higher QoQ Group Net Loss ($’M) 1H FY21/22 -141.8 -$836.8M -409.2 -427.6 -661.9 YoY $2,630.2M -1,123.3 (+75.9%) QoQ $18.4M -2,343.7 (-4.5%) Q1 Q2 Q3 Q4 Q1 Q2 FY20/21 FY20/21 FY20/21 FY20/21 FY21/22 FY21/22 Slide 15 The copyright in this
Slide 17: Group Net Loss
Group Net Loss Lower net loss mainly driven by better operating performance and absence of non-cash items recorded last year +127.0 -181.8 +170.4 -73.3 +11.3 +1,333.1 Largely due to Related to absence of -836.8 when SIA impairment of gained aircraft leased control of to NokScoot Tiger (+115.5) Airwa
Slide 18: Group Financial Position
Group Financial Position As at 30 September 2021 As at 31 March 2021 Total assets ($’M) 44,366.9 37,581.3 Total debt ($’M) 15,069.2 14,336.9 Total cash and bank balances ($’M) 12,529.6 7,783.0 Total liabilities ($’M) 22,031.8 21,303.2 Equity attributable to Owners of the Company ($’M) 21,956.9 15,90
Slide 19: Group Fleet Development
Group Fleet Development Net increase of 15 aircraft by end of FY21/22 Operating Fleet As at 30 September 2021 In Out As at 31 March 2022 SIA 777-300ER 23 23 A380-800 12 12 A330-300 - - A350-900 56 +2 58 787-10 15 +5 20 737-800 9 9 737-8 MAX 6 +1^ 7 747-400F 7 7 Total 128 +8 136 Scoot 787-8 10 +2 12
Slide 20: Fuel Hedging
Fuel Hedging SIA Group remains hedged up to Q1 FY23/24 with additional gains locked in from close-out trades ▪ Following the outbreak of the Covid-19 pandemic, there was a significant reduction in the Group’s capacity and hence fuel consumption, compared to prior planned flight schedules. ▪ In view
Slide 21: Projected Group Capital Expenditure
Projected Group Capital Expenditure Projected Capital Expenditure FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 ($’M) Aircraft 3,600 3,700 3,800 4,000 2,400 2,100 Others 300 300 300 300 300 300 Total 3,900 4,000 4,100 4,300 2,700 2,400 Slide 20 The copyright in this material (other than in respect
Slide 22: 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 23: Managing an Unprecedented Crisis; Preparing to Emerge Stronger
1 Managing an Unprecedented Crisis 2 Preparing to Emerge Stronger 3 Moving Nimbly to Seize Opportunities 4 Committed to Sustainability Slide 22 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has n
Slide 24: Managing an Unprecedented Crisis
Managing an Unprecedented Crisis Slide 23 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, re
Slide 25: Managing an Unprecedented Crisis
Managing an Unprecedented Crisis Responding with agility to sudden border closures and flight disruptions Group Capacity (M ASK) 13,112 15,826 8,273 526 Feb’20 Jan’20 Apr’20 Mar’20 Group Passengers Carried 0.01m 3.4m 2.2m 1.1m Jan’20 Feb’20 Apr’20 Mar’20 Source: Oxford COVID-19 Government Response T
Slide 26: Managing an Unprecedented Crisis
Managing an Unprecedented Crisis Moved quickly to raise liquidity to ensure survival Renegotiated contracts with Airbus and Boeing From shareholders, through Rights S$15.0B Issue of shares and MCBs Additional Restructured fleet orders to moderate current capacity growth liquidity raised S$2.1B Aircr
Slide 27: Managing an Unprecedented Crisis
Managing an Unprecedented Crisis Strong financial position allows us to focus on responding to the crisis Operating cashflows approaching break-even Monthly optg cashflows - in S$’M Approaching break-even (100) S$100M to S$150M (200) Under S$300M (300) S$300M to S$400M (400) Q1 Q2 Q3 Q4 Q1 Q2 FY20/2
Slide 28: Preparing to Emerge Stronger
Preparing to Emerge Stronger Slide 27 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, reprod
Slide 29: Preparing to Emerge Stronger
Preparing to Emerge Stronger Reviewed the end-to-end travel journey to prioritise health safety, seamlessness, and customer experience Pre-flight Check-In/Lounge/Boarding Inflight Arrival/Post-flight COVID-19 Info Centre Health assessment for passengers Care Kit for pax Staggered disembarkation • Co
Slide 30: Preparing to Emerge Stronger
Preparing to Emerge Stronger Reviewed the end-to-end travel journey to prioritise health safety, seamlessness, and customer experience Digital Health Verification Solutions • SIA among world’s first to pilot digital health verification solutions High staff vaccination rates • Now building internal c
Slide 31: Preparing to Emerge Stronger
Preparing to Emerge Stronger Innovating to engage and excite customers onboard and on-ground Engaging all five senses to elevate customers’ Strategic transformation of experience • Onboarded >245 new non-air partners in 1H Sight Taste Touch An SIA Group FY21/22 lifestyle rewards • Building a loyalty
Slide 32: Preparing to Emerge Stronger
Preparing to Emerge Stronger Bolstering our passenger and cargo network and services Forging global airline partnerships for growth Aggressively capturing cargo momentum 61% Record-high of pre-Covid cargo revenue EUR achieved in capacity restored Deepen existing in Q2 FY21/22 2 Q2 FY21/22 and partne
Slide 33: Preparing to Emerge Stronger
Preparing to Emerge Stronger Lead The New World Pursuing key revenue and cost initiatives to achieve financial sustainability Strengthening core airline revenue through initiatives such as sales operations transformation, dynamic pricing on direct channels and leveraging new distribution capabilitie
Slide 34: Moving Nimbly to Seize Opportunities
Moving Nimbly to Seize Opportunities Slide 33 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
Slide 35: Moving Nimbly to Seize Opportunities
Moving Nimbly to Seize Opportunities We are collaborating with authorities to re-start travel in a safe and calibrated manner Vaccinated Travel Lanes (VTL) Quarantine-free travel for vaccinated travellers New VTL ticket bookings for next 3 departure months SIA Group to operate VTL flights from 160,0
Slide 36: Moving Nimbly to Seize Opportunities
Moving Nimbly to Seize Opportunities We will continue to proactively capture revenue opportunities SIA Group expected to operate 43% of pre-Covid Agile and nimble approach to route management passenger capacity by Dec’21 % vs. pre-Covid in Jan’20 20,000 38% New routes launched Copenhagen-Rome, Athen
Slide 37: Moving Nimbly to Seize Opportunities
Moving Nimbly to Seize Opportunities We have been shoring up operational readiness to support a quick ramp-up in capacity We have reactivated resources at lower utilisation rates to provide ample buffer 79% 92% of Active pilots 86% of activated cabin crew activated Group passenger operating Group pi
Slide 38: Moving Nimbly to Seize Opportunities
Moving Nimbly to Seize Opportunities We can expect more border re-openings as more countries attain high vaccination rates and move to ‘live with Covid-19’ (20 Sep 2021) (3 Oct 2021) (21 Oct 2021) (5 Nov 2021) (7 Oct 2021) (17 Oct 2021) (26 Oct 2021) (1 Nov 2021) Source: The Straits Times Slide 37 T
Slide 39: Committed to Sustainability
Committed to Sustainability 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 modified, reprodu
Slide 40: Committed to Sustainability
Committed to Sustainability We are accelerating our de-carbonisation journey in spite of Covid-19 SIA Group is committed to net-zero carbon emissions by 2050 1 New aircraft technology 2 Infrastructure & operational efficiency • We are industry-leading with one of the world’s youngest fleets Reducing
Slide 41: Committed to Sustainability
Committed to Sustainability We are accelerating our de-carbonisation journey in spite of Covid-19 SIA Group is committed to net-zero carbon emissions by 2050 3 Sustainable aviation fuels (SAF) as the key 4 Carbon offsets as a near to medium- in-sector de-carbonisation lever term lever 2011 Complianc
Slide 42: Committed to Sustainability
Committed to Sustainability We remain firmly committed to sustainability across Environment, Social, and Governance dimensions Food waste Paper waste Plastic waste Waste New short-haul economy class Elimination of paper menus, Replacing 3.9m plastic meals give >50% weight, newspapers & magazines man
Slide 43: 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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