Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — FY2021/22 Earnings Presentation
41 slides from Singapore Airlines's earnings presentation, May 19, 2022
Slide 1: SIA Group Analyst / Media Briefing FY21/22 Results
SIA GROUP ANALYST / MEDIA BRIEFING FY21/22 Results (Ended 31 March 2022) 19 May 2022
Slide 2: Presentation by Executive Vice President Finance & Strategy
PRESENTATION BY: Executive Vice President Finance & Strategy Mr. Tan Kai Ping Slide 2 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 so
Slide 3: Key Takeaways – FY21/22 Results
Group Financial Results Key Takeaways – FY21/22 Results Operating loss narrowed $1,902.8 million (+75.7%) to $609.7 million: ▪ 2H operating profit of $9.7 million ; 1H operating loss of $619.4 million Net loss of $962.0 million, an improvement of $3,308.7 million Passenger carriage up 6x as travel r
Slide 4: Group Operating Statistics
Group Operating Statistics Calibrated capacity recovery gained momentum % vs Pre-Covid ASK (Jan’20) Q4 QoQ +21.6% 2H vs 1H +46.2% FY21/22 YoY +215.7% Overall CTK Q4 QoQ +9.1% 2H vs 1H +32.4% FY21/22 YoY +101.9% Slide 4 The copyright in this material (other than in respect of information from externa
Slide 5: Group Financial Results
Group Financial Results 2H 1H Better/ Better/ Better/ Better/ FY21/22 FY20/21 FY21/22 FY21/22 (Worse) (Worse) (Worse) (Worse) ($’M) ($’M) ($’M) ($’M) ($’M) (%) ($’M) (%) Total Revenue 4,787.9 2,826.9 1,961.0 69.4% 7,614.8 3,815.9 3,798.9 99.6% Total Expenditure 4,778.2 3,446.3 (1,331.9) (38.6)% 8,22
Slide 6: Group Revenue (2H FY21/22 vs 1H FY21/22)
Group Revenue (2H FY21/22 vs 1H FY21/22) Revenue driven by significant growth in passenger traffic and strong cargo demand in 2H FY21/22 Group Revenue ($’M) Q4 vs Q3 $155.9M 2H: $4,787.9M (+6.7%) 2,471.9 2,316.0 2H vs 1H 1H: $2,826.9M $1,961.0M 1,532.5 (+69.4%) 1,294.4 1,066.7 1,114.8 850.6 783.8 FY
Slide 7: Group Expenditure (2H FY21/22 vs 1H FY21/22)
Group Expenditure (2H FY21/22 vs 1H FY21/22) Group expenditure increased on expansion of operations Group Expenditure ($’M) Q4 vs Q3 2H: $4,778.2M $298.8M (+13.3%) 2,538.5 1H: $3,446.3M 2,239.7 2H vs 1H $1,331.9M 1,887.4 1,877.5 (+38.6%) 1,609.9 1,568.8 1,397.5 1,433.6 FY21/22 $8,224.5M YoY $1,896.1
Slide 8: Group Expenditure (2H vs 1H - Adjusted)
Group Expenditure (2H FY21/22 vs 1H FY21/22 - Adjusted) Group expenditure increased on expansion of operations Group Expenditure ($’M) – Adjusted (Excluded fuel hedging ineffectiveness Q4 vs Q3 and fair value gain/loss on fuel derivatives) 2H: $4,777.6M $299.8M (+13.4%) 2,538.7 1H: $3,525.1M 2,238.9
Slide 9: Group Operating Performance (2H FY21/22 vs 1H FY21/22)
Group Operating Performance (2H FY21/22 vs 1H FY21/22) Swing to operating profit in 2H FY21/22 as travel demand recovers Group Operating Performance ($’M) Q4 vs Q3 $142.9M 76.3 (n.m.) -66.6 2H vs 1H -274.4 2H: $9.7M $629.1M -330.8 -318.8 -345.0 (n.m.) 1H: -$619.4M FY21/22 -826.1 -$609.7M YoY -1,036.
Slide 10: Group Financials (Q4 FY21/22 vs Q3 FY21/22)
Group Financials (Q4 FY21/22 vs Q3 FY21/22) Q4 recorded a small operating loss, a reversal from Q3’s operating profit (+6.7%) 2,538.7 70.6% 71.7% 28.3% 29.4% (The chart above excludes fair value gain/loss on fuel derivatives) ▪ Passenger revenue surpassed Cargo revenue for the first time since onset
Slide 11: Net Fuel Cost (Q4 FY21/22 vs Q3 FY21/22)
Net Fuel Cost (Q4 FY21/22 vs Q3 FY21/22) Net fuel cost up due to higher fuel prices and volume uplifted, partially mitigated by hedging gain and forex +$112.3M Higher Weaker (+17.7%) Higher USD Higher hedging weighted against uplift gain average SGD fuel price Q3 FY21/22 Q4 FY21/22 Fuel price (befor
Slide 12: Fuel Prices and Fuel Hedging Position
Fuel Prices and Fuel Hedging Position SIA Group remains hedged up to Q1 FY23/24 with additional gains locked in from close-out trades Average Percentage Hedged Price Average jet fuel price (before hedging) for FY21/22: Fuel Hedging Position Hedged for Brent USD90.31/BBL (as at 19 May 2022) (%) (USD/
Slide 13: Group Operating Performance FY21/22
Group Operating Performance FY21/22 Improvement in op loss driven by higher flown revenue partially offset by higher costs with increased flying activities Higher net fuel cost Higher pax flown revenue Absence of fuel Higher cargo hedging flown revenue ineffectiveness which was recorded Largely: las
Slide 14: Operating Results for the Main Companies of the Group
Operating Results for the Main Companies of the Group 2H 1H Better/ Better/ Better/ Better/ FY21/22 FY20/21 FY21/22 FY21/22 (Worse) (Worse) (Worse) (Worse) ($’M) ($’M) ($’M) ($’M) $M (%) $M (%) Full-service carrier 274.6 (386.5) 661.1 n.m. (111.9) (1,921.0) 1,809.1 94.2 Low-cost carrier (236.6) (217
Slide 15: Group Net Performance FY21/22
Group Net Performance FY21/22 Better 2H led by improvement in operating performance & JVs/assoc results, partially offset by reduction in tax credit Group Net Performance ($’M) 84.7 2H vs 1H $711.6M -141.8 -209.9 (+85.0%) -409.2 -427.6 -661.9 2H: -$125.2M 1H: -$836.8M FY21/22 -1,123.3 -$962.0M YoY $
Slide 16: Group Net Performance FY21/22
Group Net Performance FY21/22 Improvement in net loss driven by better operating performance and lower non-cash impairment charges Group Net Performance ($'M) Reduction in tax credit +$3,308.7M (+77.5%) Slide 16 The copyright in this material (other than in respect of information from external sourc
Slide 17: Group Financial Results
Group Financial Results FY21/22 FY20/21 Loss per share (cents) - Basic R1 (16.2) (102.6)R2 - Adjusted Basic R3 (32.4) (144.0) - Diluted R4 (16.2) (102.6)R2 EBITDA ($ million) R5 1,301.2 (2,545.6) EBITDA margin (%) R6 17.1 (66.7) R1 Loss per share (basic) is computed by dividing loss attributable to
Slide 18: Group Financial Position
Group Financial Position As at 31 March 2022 As at 31 March 2021 Total assets ($’M) 48,671.0 37,581.3 Total debt ($’M) 15,694.8 14,336.9 Total cash and bank balances ($’M) 13,762.7 7,783.0 Total liabilities ($’M) 25,870.6 21,303.2 Equity attributable to Owners of the Company ($’M) 22,411.9 15,905.9
Slide 19: Group Fleet Development
Group Fleet Development Net increase of 16 aircraft by end of FY22/23 Operating Fleet As at 31 March 2022 In Out As at 31 March 2023 SIA 777-300ER 23 23 A380-800 12 12 A350-900 58 +3R1 61 787-10 15 +3R2 18 737-800 7 7 737-8 8 +8R3 16 747-400F 7 7 Total 130 +14 144 Scoot 787-8 10 10 787-9 10 10 A320c
Slide 20: Projected Group Capital Expenditure
Projected Group Capital Expenditure Projected Capital Expenditure FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 ($’M) Aircraft 4,100 3,500 4,000 2,900 2,400 Others 300 300 300 300 300 Total 4,400 3,800 4,300 3,200 2,700 Slide 20 The copyright in this material (other than in respect of information from ext
Slide 21: Presentation by Chief Executive Officer Mr. Goh Choon Phong
PRESENTATION BY: Chief Executive Officer Mr. Goh Choon Phong Slide 21 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 22: Emerging More Resilient, Innovative, and Agile; Continued Strengthening of the SIA Core
Emerging More Resilient, Innovative, 1 and Agile 2 Continued Strengthening of the SIA Core 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 not independently verified the information fr
Slide 23: Emerging More Resilient, Innovative, and Agile
Emerging More Resilient, Innovative, and Agile 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 b
Slide 24: Gaining resilience in the face of an unprecedented crisis
Emerging More Resilient, Innovative, and Agile Gaining resilience in the face of an unprecedented crisis 16,000 4,000 SIA Group Passenger Capacity (ASK’m) 3.4m pax carried in Jan’20 14,000 3,500 SIA Group Passengers Carried (‘000) 12,000 3,000 Number of passengers carried (‘000) Available seat-kilom
Slide 25: Decisive actions to build a strong financial position
Emerging More Resilient, Innovative, and Agile Gaining resilience in the face of an unprecedented crisis Decisive actions to build a strong financial position Second USD bond issue Aircraft Sale & Rights Issue of Leaseback MCBs Private notes (second tranche) First USD bond issue Series of aircraft s
Slide 26: Staff measures to preserve core aviation capabilities
Emerging More Resilient, Innovative, and Agile Gaining resilience in the face of an unprecedented crisis Various staff measures to preserve core aviation capabilities Minimised involuntary departures Pay cuts • Pay cuts across staff groups • 20% positions reduced at SIA Group, of which <9% were invo
Slide 27: Innovating to retain world-class leadership
Emerging More Resilient, Innovative, and Agile Innovating to retain world-class leadership Swiftly re-designing the customer experience Engaging customers in new and creative ways Created ‘Discover Your SIA’ experiences when borders were mostly Extensive customer surveys closed • Regular surveys fro
Slide 28: Innovating to retain world-class leadership
Emerging More Resilient, Innovative, and Agile Innovating to retain world-class leadership Improving our products and services Developing Advancing our digital blueprint Exploring new newmodels business business models New YCL dining concept Corporate Laboratories Pivoted to e-Commerce at • Launched
Slide 29: Planning multiple steps ahead to lead the air travel recovery
Emerging More Resilient, Innovative, and Agile Moving with agility to steer recovery from a position of strength Planning multiple steps ahead to lead the air travel recovery 100% 98% 93% 75% 70% 61% 50% 47% 39% 25% 18% 4% 5% 0% Q1 FY20/21 Q2 FY20/21 Q3 FY20/21 Q4 FY20/21 Q1 FY21/22 Q2 FY21/22 Q3 FY
Slide 30: An agile and nimble approach to restoring our network
Emerging More Resilient, Innovative, and Agile Moving with agility to steer recovery from a position of strength An agile and nimble approach to restoring our network Europe 120 550 Southeast Asia SIA Group weekly frequencies 110 500 Jul’21: ~ 460 450 100 400 Sep’22: ~ 1,100 90 350 80 Oct’21: furthe
Slide 31: Passengers carried up six-fold YoY in FY21/22
Emerging More Resilient, Innovative, and Agile Our recovery is due to the work we have put in over the last two years Passengers carried up six-fold YoY in FY21/22 Driving demand with timely and novel sales campaigns SIA Group Passengers carried ('000) 2,500 Apr’22: 1.45m (+63% MoM) 2,000 • Launched
Slide 32: Significant pick-up in passenger load factor
Emerging More Resilient, Innovative, and Agile Our recovery is due to the work we have put in over the last two years Significant pick-up in passenger load factor Strong and emphatic forward booking momentum SIA Group passenger load factor Apr’22: Forward bookings for SIA Group flights departing 19M
Slide 33: Record-high cargo financial performance in FY21/22
Emerging More Resilient, Innovative, and Agile Our recovery is due to the work we have put in over the last two years Record-high cargo financial performance in FY21/22 Aggressively restoring cargo capacity to seize momentum 81.5cts/LTK in $1.35bn in Q3 1,500.0 Q3 cargo yield cargo revenue 90.0 • Op
Slide 34: Operating cash surplus in FY21/22
Emerging More Resilient, Innovative, and Agile Our recovery is due to the work we have put in over the last two years Operating cash surplus in FY21/22 Monthly operating cashflows (S$'m) 200 - (200) (400) FY20/21 FY21/22 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • Positive operating cashflows in 2H FY21/22, with $824
Slide 35: Continued Strengthening of the SIA Core
Continued Strengthening of the SIA Core Slide 35 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 36: Transformation programme to help us emerge stronger and fitter
Continued Strengthening of the SIA Core Transformation programme to help us emerge stronger and fitter LEAD THE NEW WORLD Leadership in Flexible and quick to Financial Build a dynamic & Products & Services rebuild our network Sustainability resilient workforce +41% >70% of >250 initiatives increase
Slide 37: Strengthening key pillars for growth beyond the pandemic
Continued Strengthening of the SIA Core Strengthening key pillars for growth beyond the pandemic Modern cabin products Revamped lounge facilities • All operating A380s are fitted with latest cabin products • ~S$50m invested to upgrade our flagship T3 SilverKris Lounges, • Launched new narrow-body pr
Slide 38: Deepening partnerships to access new markets
Continued Strengthening of the SIA Core Strengthening key pillars for growth beyond the pandemic Deepening partnerships to access new markets Enhanced network connectivity Lufthansa Group, • Our 33 codeshare partners connect passengers Scandinavian Airlines to >200 additional destinations 1 ANA Expa
Slide 39: Strategic transformation of KrisFlyer to SIA Group's rewards programme
Continued Strengthening of the SIA Core Strengthening key pillars for growth beyond the pandemic Strategic transformation of KrisFlyer to SIA Group’s rewards programme ➢ Strengthened KrisFlyer during the pandemic ➢ Kris+ to anchor SIA Group’s customer assets & KrisFlyer membership +11% vs. pre-Covid
Slide 40: We continue to progress on our sustainability journey
Continued Strengthening of the SIA Core We continue to progress on our sustainability journey Long-term commitment to new-gen aircraft 15 yrs 4 mths 6 yrs 2 mths 63% 107 of SIA Group’s aircraft are new- new-gen aircraft on firm order for Global fleet age (at May’22) 1 SIA Group fleet age (at May’22)
Slide 41: 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