Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — Q1 FY2020/21 Earnings Presentation
17 slides from Singapore Airlines's earnings presentation, August 2020
Slide 1: SIA Group Financial Results Q1 FY20/21
SIA GROUP FINANCIAL RESULTS For 1st Quarter FY20/21 Ended 30 June 2020
Slide 2: Business Background
Business Background Extracts from IATA’s Air Passenger(1) and Air Cargo Market Analysis(2) Passenger Air Cargo ▪ Industry traffic (revenue pax-km or RPK) fell 86.5% y-o-y in ▪ Industry-wide cargo capacity (measured in cargo tonne-km) crunch Jun’20, compared with 91.0% contraction in May’20. continue
Slide 3: Group Financial Results
Group Financial Results
Slide 4: Key Takeaways – Q1 FY20/21 Results
Group Financial Results Key Takeaways – Q1 FY20/21 Results ▪ SIA Group passenger carriage plunges by 99.5% leading to a $1 billion net loss in Q1 FY20/21 ▪ Group revenue dominated by cargo contribution on the back of strong demand for airfreight ▪ SIA Group implemented measures to contain costs and
Slide 5: Financial Results
Group Financial Results Q1 FY20/21 Q1 FY19/20 Better/(Worse) Better/(Worse) ($’M) ($’M) ($’M) (%) Total Revenue 851 4,102 (3,251) (79.3) Total Expenditure 1,888 3,902 2,014 51.6 -- Net Fuel Cost 155 1,173 1,018 86.8 Fuel Cost (before hedging) 84 1,230 1,146 93.2 Fuel Hedging Loss/(Gain) 71 (57) (128
Slide 6: Revenue Q1 FY20/21
Group Revenue Q1 FY20/21 Group revenue dominated by Cargo contribution on the back of strong demand for airfreight Group Revenue ($’M) 4,471 4,102 4,222 3,181 851 Q1 Q2 Q3 Q4 Q1 FY19/20 FY19/20 FY19/20 FY19/20 FY20/21 Q1 Group Revenue declined $3,251M (-79.3%) y-o-y: Carriage ▪ Plunge in passenger t
Slide 7: Expenditure Q1 FY20/21
Group Expenditure Q1 FY20/21 Group expenditure declined as the Group drastically cut capacity Group Expenditure ($’M) 4,009 4,022 3,984 3,902 Q1 Group expenditure declined by $2,014M (-51.6%) y-o-y: (a) Capacity cuts and lower fuel prices led to reduction of fuel cost before hedging, partially offse
Slide 8: Steps taken to contain costs
Group Expenditure Q1 FY20/21 Steps taken to contain costs Proactive actions to address the Covid-19 challenges Deferral of non-critical projects Decisive capacity cuts across the and tight control on discretionary network expenditure Cash conservation and costs reduction Cuts in Management salaries,
Slide 9: Operating Performance Q1 FY20/21
Group Operating Performance Q1 FY20/21 Better/ Better/ Q1 FY20/21 Q1 FY19/20 (Worse) (Worse) $’M $’M $’M % SIA (667) 232 (899) n.m. SilkAir (102) (16) (86) n.m. Scoot (259) (37) (222) n.m. SIAEC Group (9) 18 (27) n.m. The copyright in this material (other than in respect of information from external
Slide 10: Loss Q1 FY20/21
Group Loss Q1 FY20/21 Covid-19 pandemic severely crippled financial performance for the Group 449 200 213 315 $1B net loss driven by: ▪ Q1 FY20/21 operating loss vs 111 94 operating profit y-o-y ▪ Weaker operating performance ▪ Reduction in Group expenditure ▪ Liquidation cost for NokScoot could not
Slide 11: Balance Sheet
Balance Sheet Fresh liquidity from rights issue strengthens financial position to tackle Covid-19 challenges Improved financial gearing Increase in liquidity Debt / Equity Ratio $11 billion in fresh liquidity puts SIA on a strong footing to tackle Covid-19 challenges 1.27x 0.68x As at 31 Mar'20 As a
Slide 12: Outlook
Outlook
Slide 13: Restarting Operations – Staying Nimble and Flexible
Restarting Operations – Staying Nimble and Flexible We continue to work closely with industry groups and regulators to advocate and support the safe opening of borders Some progress has been made: • Green lane arrangement has been established with selected CPH AMS cities in China in Jun’20 LHR • Sin
Slide 14: Measures to increase cargo capacity
Restarting Operations – Staying Nimble and Flexible Measures to increase cargo capacity Cargo-only passenger flights provide incremental cargo Prior to Covid-19*: capacity and network reach to ensure the continuous flow of essential goods and cater to global supply chain needs 21% Freighter 79% Bell
Slide 15: Covid-19: An Unprecedented Challenge
Covid-19: An Unprecedented Challenge Industry experts and bodies forecast a slow recovery in air travel Downward revision in recovery projections of global passenger traffic. ▪ Slower opening of economies and relaxation of travel restrictions. ▪ Air travel recovery expected to be further delayed. Cu
Slide 16: SilkAir Integration Into SIA
SilkAir Integration Into SIA Progress remains on track ▪ SilkAir’s 737-800 narrowbody operations will transition to SIA starting from Q4 FY20/21 ▪ Customers benefit from step up to SIA’s inflight experience ▪ Greater economies of scale as the Group deploys the right aircraft to meet demand for air t
Slide 17: 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
Singapore Airlines — Q1 FY2020/21 Earnings Presentation on 6ix