Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — Q3 FY2018/19 Earnings Presentation
28 slides from Singapore Airlines's earnings presentation, Feb 15, 2019
Slide 1: SIA Group Q3 and 9M FY2018/19 Results
SIA Group Q3 and 9M FY2018/19 Results Slide 1 15 February 2019
Slide 2: Parent Airline Company
PARENT AIRLINE COMPANY Q3 & 9M FY2018/19 Slide 2
Slide 3: Parent Airline Company Operating Results
PARENT AIRLINE COMPANY Q3 & 9M FY2018/19 Operating Results Q3 Q3 Better/ 9M 9M Better/ FY18/19 FY17/18* (Worse) FY18/19 FY17/18* (Worse) ($M) ($M) (%) ($M) ($M) (%) Total Revenue 3,517.4 3,301.2 6.5 9,890.6 9,597.2 3.1 Total Expenditure 3,148.7 2,935.0 (7.3) 9,103.7 8,542.0 (6.6) -- Net fuel cost 1,
Slide 4: Parent Airline Company (PAX)
PARENT AIRLINE COMPANY (PAX) Q3 & 9M FY2018/19 Q3 Change 9M Change FY18/19 % FY18/19 % Revenue Passenger-KM (M) 26,302.6 7.3 76,905.2 6.4 Available Seat-KM (M) 31,537.9 5.0 92,057.5 3.4 Passenger Load Factor (%) 83.4 1.8 pts 83.5 2.3 pts Pax Yield (¢/pkm) 10.4 - 10.1 (1.0) RASK (¢/ask) 8.7 2.4 8.4 1
Slide 5: Parent Airline Company (PAX) Monthly RASK
PARENT AIRLINE COMPANY (PAX) Q3 & 9M FY2018/19 Monthly RASK ¢/ask 2016/17 2017/18 2018/19 9.0 9.0 8.9 8.6 8.6 8.8 8.5 8.5 8.5 8.5 8.5 8.5 8.5 8.5 8.5 8.3 8.3 8.3 8.2 8.2 8.1 8.3 8.2 8.2 8.1 8.1 8.1 8.0 8.0 8.0 8.0 7.7 7.9 7.9 7.6 7.6 7.5 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Slide 5
Slide 6: Parent Airline Company (Cargo)
PARENT AIRLINE COMPANY (CARGO) Q3 & 9M FY2018/19 Q3 Change 9M Change FY18/19 % FY18/19 % Cargo Load Tonne-KM (M) 1,906.4 (2.8) 5,398.9 (2.5) Cargo Capacity Tonne-KM (M) 2,886.4 0.5 8,478.1 1.1 Cargo Load Factor (%) 66.0 (2.3) pts 63.7 (2.3) pts Cargo Yield (¢/ltk) 33.3 3.4 32.2 7.3 Cargo Unit Cost (
Slide 7: Parent Airline Company (Cargo) Monthly Cargo Yields
PARENT AIRLINE COMPANY (CARGO) Q3 & 9M FY2018/19 Monthly Cargo Yields 35 ¢/ltk 2016/17 2017/18 2018/19 34.0 34.1 34 33.1 33 32.7 32.1 32.3 31.8 31.8 32.7 32 31 30.6 30.6 30.2 29.9 29.8 30 29.1 29.1 30.2 29.9 28.8 29.6 29 28.6 28.2 28.1 27.8 28 27.5 26.9 27.0 28.1 26.7 27.6 27.7 27 26.5 26.6 26 25 Ap
Slide 8: Parent Airline Company Cost Composition
PARENT AIRLINE COMPANY Q3 FY2018/19 Cost Composition ($M) LPO* Charges Handling Charges Staff Cost 178.5 297.7 529.9 (+4.7, +2.7%) (-14.9, -4.8%) (+62.0, +13.3%) AMO Costs 160.4 Passenger Costs (-33.9, -17.4%) 9.4% 16.8% 169.0 5.7% 5.1% (+6.0, +3.7%) Aircraft 5.4% depreciation and Sales Cost 11.6% 5
Slide 9: Parent Airline Company Overall Unit Cost Analysis
PARENT AIRLINE COMPANY Q3 FY2018/19 Overall Unit Cost Analysis ¢/ctk 60 51.6 50 48.9 Unit Fuel Cost 16.98 (+18.0%) 40 14.39 30 7.93 Unit Staff Cost 8.72 (+10.0%) 20 26.61 Unit Other Cost 25.93 (-2.6%) 10 0 Q3 FY17/18 Q3 FY18/19 Slide 9
Slide 10: SIA Group Q3 & 9M FY2018/19
SIA GROUP Q3 & 9M FY2018/19 Slide 10
Slide 11: SIA Group Operating Results
SIA GROUP – Q3 & 9M FY2018/19 Operating Results Q3 Q3 Better/ 9M 9M Better/ FY18/19 FY17/18* (Worse) FY18/19 FY17/18* (Worse) ($M) ($M) (%) ($M) ($M) (%) Total Revenue 4,341.5 4,076.7 6.5 12,248.1 11,788.8 3.9 Total Expenditure 3,953.9 3,623.0 (9.1) 11,434.5 10,573.4 (8.1) -- Net fuel cost 1,252.0 1
Slide 12: Group Revenue
SIA GROUP – Q3 & 9M FY2018/19 $M Group Revenue 4,400 4,341.5 4,200 4,076.7 9M FY18/19 4,062.1 $12,248.1M 4,000 3,864.2 3,847.9 3,844.5 Year-on-Year 3,800 $459.3M (+3.9%) 3,600 3,400 Q1 Q2 Q3 Q1 Q2 Q3 Slide 12 FY17/18 FY18/19
Slide 13: Group Revenue (Ex non-recurring)
SIA GROUP – Q3 & 9M FY2018/19 $M Group Revenue (Ex non-recurring) 4,400 Non- 4,341.5 recurring revenue 4,200 4,076.7 9M FY18/19 4,062.1 $12,248.1M 4,000 3,847.9 3,844.5 Year-on-Year 3,800 175.3 $ 634.6M (+5.5%) 3,600 3,688.9 3,400 Q1 Q2 Q3 Q1 Q2 Q3 Slide 13 FY17/18 FY18/19
Slide 14: Revenue Breakdown
SIA GROUP – Q3 FY2018/19 Revenue Breakdown ($M) Passenger Flown Revenue 3,422.8 (+244.6, +7.7%) Cargo and Mail 634.8 (+3.1, +0.5%) 78.8% 14.7% Engineering Services 130.9 (+16.3, +14.2%) Other Passenger Revenue 91.1 Others (-2.0, -2.1%) 61.9 (+2.8, +4.7%) Slide 14
Slide 15: Breakdown of Change in Flown Revenue & Statistics
SIA GROUP – Q3 FY2018/19 Breakdown of Change in Flown Revenue & Statistics Flown Revenue Yields RASK Carriage/Load Capacity against against last against last against last against last last year year year year year $M % % % % SIA + 195.2 - + 2.4 + 7.3 + 5.0 (Pax) SilkAir + 4.6 - 1.8 + 1.2 + 3.8 + 0.7
Slide 16: Group Expenditure
SIA GROUP – Q3 & 9M FY2018/19 $M Group Expenditure 4,000 Restatement for 3,953.9 FY17/18 due to 3,900 adoption of IFRS 1 3,829.2 9M FY18/19 3,800 $11,434.5M 3,700 124.3 3,651.4 Year-on-Year 3,600 $861.1M 124.5 123.8 (+8.1%) 3,500 3,623.0 3,400 3,490.8 3,459.6 3,300 Q1 Q2 Q3 Q1 Q2 Q3 Slide 16 FY17/18
Slide 17: Cost Composition
SIA GROUP – Q3 FY2018/19 Cost Composition ($M) AMO Costs Depreciation and Handling Charges 202.4 Lease Rentals 333.4 (-21.8, -9.7%) 499.5 (-3.0, -0.9%) (+12.9, +2.7%) LPO* Charges Staff Cost 229.1 5.1% 12.6% 743.3 8.4% (+11.8, +5.4%) (+72.7, +10.8%) 5.8% 18.8% Passenger Costs 4.8% 188.4 (+9.2, +5.1%
Slide 18: Composition of Increase in Fuel Cost (After Hedging)
SIA GROUP – Q3 FY2018/19 Composition of Increase in Fuel Cost (After Hedging) $M 1,300 +231.9 -57.9 +33.4 1,252.0 +19.9 1,200 Higher Higher Stronger uplift hedging USD +227.3 gain against (+22.2%) SGD 1,100 1,024.7 1,000 Higher weighted average fuel price 900 Q3 FY17/18 Price Hedging Exchange Volume
Slide 19: Group Operating Profit
SIA GROUP – Q3 & 9M FY2018/19 Group Operating Profit $M 600 500 9M FY18/19 453.7 404.6 Op. Profit 400 357.1 387.6 $813.6M 300 232.9 193.1 Year-on-Year 200 -$401.8M (-33.1%) 100 0 Q1 Q2 Q3 Q1 Q2 Q3 FY17/18 FY18/19 Slide 19
Slide 20: Group Operating Profit (excluding non-recurring revenue & fuel price increase)
SIA GROUP – Q3 & 9M FY2018/19 Group Operating Profit (excluding non-recurring revenue & fuel price increase) $M 600 Non-recurring Fuel price revenue increase 500 9M FY18/19 453.7 98.1 Op. Profit 400 357.1 $1,307.1M 175.3 196.4 300 199.0 Year-on-Year 200 387.6 +$267.0M 229.3 232.9 (+25.7%) 100 193.1
Slide 21: Composition of Decrease in Operating Profit
SIA GROUP – Q3 FY2018/19 Composition of Decrease in Operating Profit $M Higher 800 net fuel +16.3 costs +244.6 700 Higher 600 engineering Higher revenue ex-fuel costs 500 453.7 -227.3 -66.1 +3.9 387.6 400 Higher (-14.6%) pax -103.6 300 flown Largely: revenue • Depreciation expense (+46.9) • Lower le
Slide 22: Group Operating Profit by Company
SIA GROUP – Q3 FY2018/19 Group Operating Profit Q3 Q3 Better/ Better/ FY18/19 FY17/18R1 (Worse) (Worse) ($M) ($M) ($M) (%) SIAR2 369 366 3 0.8 SIAEC Group 16 19 (3) (15.8) SilkAir 7 19 (12) (63.2) Scoot 1 43 (42) (97.7) R1 Restated depreciation for prior year due to the adoption of IFRS 1 R2 Adjuste
Slide 23: Group Profit Attributable to Owners of the Parent
SIA GROUP – Q3 & 9M FY2018/19 Group Profit Attributable $M to Owners of the Parent 500 400 389.3 9M FY18/19 337.9 Net Profit 293.3 $480.1M 300 284.1 200 Year-on-Year 139.6 -$540.4M 100 (-53.0%) 56.4 0 Q1 Q2 Q3 Q1 Q2 Q3 FY17/18 FY18/19 Slide 23
Slide 24: Adjusted Group Profit Attributable to Owners of the Parent
SIA GROUP – Q3 & 9M FY2018/19 Adjusted Group Profit Attributable $M to Owners of the Parent 500 400 389.3 9M FY18/19 Net Profit 293.3 $595.7M 300 284.1 145.5 200 Year-on-Year 139.6 -$279.3M 100 192.4 115.6 (-31.9%) 56.4 0 Q1 Q2 Q3 Q1 Q2 Q3 FY17/18 FY18/19 Non-recurring Non-recurring Slide 24
Slide 25: Group Profit Attributable to Owners of the Parent Bridge
SIA GROUP – Q3 FY2018/19 Group Profit Attributable to Owners of the Parent $M 410 Lower operating 389.3 profit 390 370 350 Share of -105.2 losses vs Higher (-27.0%) 330 profits Share of net profits vs finance -66.1 losses charges 310 Loss on Competition- disposals related settlements 290 +13.9 -9.9
Slide 26: Fuel Hedging Position
SIA GROUP – FUEL HEDGING POSITION Q4 FY18/19 Jet Fuel Brent Percentage hedged (%) 80 - Average hedged price (USD/bbl) 74 FY19/20 Jet Fuel Brent Percentage hedged (%) 54 15 Average hedged price (USD/bbl) 76 55 FY20/21 to FY23/24 Jet Fuel Brent Percentage hedged (%) 7% Up to 45% Average hedged price (
Slide 27: Operating Fleet
SIA GROUP – OPERATING FLEET As At As At Group Operating Fleet: In Out 30 Sep’18 31 Dec’18 A330-300 19 -1 18 A380-800 19 19 A350-900 21 +8 29 777 45 -1 44 787-10 6 +2 8 747-400F 7 7 SIA Total: 117 + 10 -2 125 A319 2 2 A320 8 8 737-800 17 17 737 MAX 8 5 5 SilkAir Total: 32 - - 32 A319 2 2 A320 24 +2 -
Slide 28: Thank You
THANK YOU Slide 28
Singapore Airlines — Q3 FY2018/19 Earnings Presentation on 6ix