Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — H1 FY2006/07 Earnings Presentation

31 slides from Singapore Airlines's earnings presentation, Oct 27, 2006

  1. Slide 1: Half Year and 2nd Quarter FY2006-07 Financial Results

    Half Year and 2nd Quarter FY2006-07 Financial Results 27 October 2006 Singapore Airlines Limited Company Registration No.: 197200078R Further information and media releases can be found at the Singapore Airlines internet website www.singaporeair.com.sg

  2. Slide 2: SIA Group 1H 2006/07 Results

    » SIA GROUP 1H 2006/07 RESULTS SINGAPORE AIRLINES y

  3. Slide 3: Group Highlights – 1H FY06/07

    GROUP HIGHLIGHTS – 1H FY06/07 Highlights of Group’s Performance • Record revenue $7,030 million (+9.9%) • Operating profit $533 million (-8.7%) • Net profit $868 million (+50.3%) • Earnings per share 70.8 cents (+49.4%) • Interim dividend per share 15.0 cents (+50.0%)

  4. Slide 4: Group Revenue – 1H FY06/07

    GROUP REVENUE – 1H FY06/07 ($ million) ($ million) 8,000 +9.9% 7,030 7,000 6,395 6,000 5,779 5,229 5,000 4,172 4,000 3,000 2,000 1,000 0 1H/02 1H/03 1H/04 1H/05 1H/06

  5. Slide 5: Group Fuel Expenditure – 1H FY06/07

    GROUP FUEL EXPENDITURE – 1H FY06/07 ($ million) ($ million) 3,000 +31.9% 2,557 2,500 2,000 1,938 1,500 1,198 1,000 882 820 500 0 1H/02 1H/03 1H/04 1H/05 1H/06

  6. Slide 6: Group Ex-Fuel Expenditure – 1H FY06/07

    GROUP EX-FUEL EXPENDITURE – 1H FY06/07 ($ million) ($ million) 5,000 +1.7% 3,958 3,940 4,000 3,838 3,872 3,414 3,000 2,000 1,000 0 1H/02 1H/03 1H/04 1H/05 1H/06

  7. Slide 7: Group Operating Profit – 1H FY06/07

    GROUP OPERATING PROFIT – 1H FY06/07 ($ million) ($ million) 1,400 +635 -619 1,200 1,000 800 584 -67 533 600 (-8.7%) 400 Increase in Higher Higher loads & yields fuel cost other costs 200 0 1H/05 Revenue Fuel Ex-Fuel 1H/06

  8. Slide 8: Group Results – 1H FY06/07

    GROUP RESULTS – 1H FY06/07 1H/06 1H/05 Earnings Per Share (¢) 70.8 47.4 Interim Dividend Per 15.0 10.0 Share (¢) At 30 Sep 06 At 31 Mar 06 Net Asset Value Per 11.20 11.00 Share ($)

  9. Slide 9: Contribution to Group Operating Profit

    CONTRIBUTION TO GROUP OPERATING PROFIT – 1H FY06/07 120 Others 5.4% 100 6.1% SIAEC 12.7% 10.2% 80 18.2% 18.6% SATS 60 40 53.6% SIA 69.0% 20 11.5% 0 1H/05 1H/06 -5.3% SIA Cargo -20

  10. Slide 10: The Parent Airline 1H 2006/07 Results

    THE PARENT AIRLINE 1H 2006/07 RESULTS

  11. Slide 11: The Parent Airline Company Highlights – 1H FY06/07

    THE PARENT AIRLINE COMPANY HIGHLIGHTS – 1H FY06/07 Highlights of Company’s Performance • Capacity growth (+3.1%) • Passengers carriage (+7.6%) • Passenger load factor 77.5% (+3.2% points) • Passenger yield 10.7¢/pkm (+2.9%) • Record revenue $5,481 million (+10.1%) • Unit cost 7.8¢/ask (+8.3%) • Oper

  12. Slide 12: The Parent Airline Company Results – 1H FY06/07

    THE PARENT AIRLINE COMPANY RESULTS – 1H FY06/07 ($ million) 1H/06 1H/05 % Change Total Revenue 5,480.6 4,978.3 + 10.1 Total Expenditure (5,112.5) (4,665.6) + 9.6 Operating Profit 368.1 312.7 + 17.7

  13. Slide 13: The Parent Airline Company Operating Performance

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – 1H FY06/07 1H/06 1H/05 % Change Passenger Yield 10.7 10.4 + 2.9 (¢/pkm) Unit Cost 7.8 7.2 + 8.3 (¢/ask) Passenger 72.9 69.2 + 3.7 pts Breakeven Load Factor (%)

  14. Slide 14: The Parent Airline Company Operating Performance

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – 1H FY06/07 (Billion KM) 70.0 ASK 60.0 (+3.1%) 50.0 40.0 30.0 20.0 10.0 0.0 1H/05 1H/06

  15. Slide 15: The Parent Airline Company Operating Performance

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – 1H FY06/07 (Billion KM) 70.0 ASK 60.0 (+3.1%) 50.0 Passenger 77.5 40.0 74.3 Load Factor (+3.2% pts) 30.0 20.0 RPK (+7.6%) 10.0 0.0 1H/05 1H/06

  16. Slide 16: The Parent Airline Company Operating Performance

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – 1H FY06/07 1H/06 1H/05 % Change Passenger Load 77.5 74.3 + 3.2 pts Factor (%) Passenger 72.9 69.2 + 3.7 pts Breakeven Load Factor (%) Passenger Load 4.6 pts 5.1 pts - 0.5 pt Factor Spread (%)

  17. Slide 17: The Parent Airline Company Cost Composition

    THE PARENT AIRLINE COMPANY COST COMPOSITION – 1H FY06/07 Others 21.7% (-3.4 pts) AMO Fuel 6.4% 39.8% (+0.8 pt) (+6.6 pts) Airport Handling 7.4% (-0.8 pt) Aircraft Staff Depreciation & Rental 14.6% 10.1% (-1.3 pts) (-1.9 pts)

  18. Slide 18: The Parent Airline Company Cost Analysis

    THE PARENT AIRLINE COMPANY COST ANALYSIS – 1H FY06/07 $2,033.5M Fuel (+31.3%) $744.3M Staff (-3.1%) Depr, Rentals & $516.6M Carrying Costs (-3.1%) 1H/05 1H/06 $377.4M Airport Handling (-1.0%) $329.5M AMO (+25.6%) $1,111.2M Others (-5.2%) 0 500 1000 1500 2000 2500 $ million

  19. Slide 19: The Passenger Airline Company Fuel Cost

    THE PASSENGER AIRLINE COMPANY FUEL COST – 1H FY06/07 (U$/BBL) ($ million) 100 3,500 89.53 90 3,000 73.84 80 70 2,500 2,034 (+31.3%) 60 49.22 2,000 50 1,549 35.22 1,500 40 31.35 30 954 1,000 720 20 622 500 10 0 0 1H/02 1H/03 1H/04 1H/05 1H/06

  20. Slide 20: The Parent Airline Company Fuel Cost Analysis

    THE PARENT AIRLINE COMPANY FUEL COST ANALYSIS – 1H FY06/07 ($ million) 2,500 +377 +141 2,034 2,000 +62 - 95 +485 1,549 1,500 1,000 500 Increase Increase in Weakening Lower in volume weighted of USD hedging uplifted average against gain fuel price SGD 0 1H/05 Volume Price Exchange Hedging 1H/06

  21. Slide 21: SIA Subsidiaries 1H 2006/07 Results

    SIA SUBSIDIARIES 1H 2006/07 RESULTS

  22. Slide 22: Subsidiaries Net Profit/(Loss)

    SUBSIDIARIES NET PROFIT/(LOSS) – 1H FY06/07 ($ million) 1H/06 1H/05 % Change SIAEC Group 138.4 105.6 + 31.1 SATS Group 100.5 106.8 - 5.9 SilkAir 2.5 (2.5) n.m. SIA Cargo (36.3) 45.0 n.m.

  23. Slide 23: SIA Cargo Operating Performance – Growth in Cargo Traffic

    SIA CARGO OPERATING PERFORMANCE – GROWTH IN CARGO TRAFFIC (%) 14.0 12.0 10.9 10.0 8.0 6.0 6.0 3.7 4.0 2.5 2.0 1.2 0.0 -2.0 -1.2 -4.0 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06

  24. Slide 24: SIA Cargo

    SIA CARGO • Cargo traffic growth picked up in September • Momentum building up to pre X’mas peak • Global economy uncertainty calls for caution

  25. Slide 25: Outlook & Developments

    » OUTLOOK & DEVELOPMENTS

  26. Slide 26: Outlook

    OUTLOOK • Fuel Price • Fuel Hedging Position • Fleet Development • A380 Delivery • New Products

  27. Slide 27: Group Fuel Hedging Position – FY2006/07

    GROUP FUEL HEDGING POSITION – FY2006/07 • Budgeted Uplift Volume (M BBL) 36 • Hedging Target (%) 30-60 • Percentage Hedged (%) 55 • Average Hedged Price (USD/BBL) 81

  28. Slide 28: Passenger Fleet Development – FY2006/07

    PASSENGER FLEET DEVELOPMENT – FY2006/07 No. of Aircraft As at 1 April 2006 90 Aircraft Deliveries • Boeing B777-300ER 9 Aircraft Sold Off • Boeing B747-400 5 As at 31 March 2007 94

  29. Slide 29: A380 Delivery

    A380 Delivery • A380 delivery schedule by end 2008 Delivery Date Aircraft October 2007 #1 January 2008 #2 February 2008 #3 April 2008 #4 June 2008 #5 July 2008 #6

  30. Slide 30: New Products

    NEW PRODUCTS • New First, Business and Economy Class seats • Next generation KrisWorld inflight entertainment system

  31. Slide 31: PPLIVES ON

    oF RE PPLIVES ON a < 0 = Tr

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