Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — FY2011/12 Earnings Presentation
18 slides from Singapore Airlines's earnings presentation, May 10, 2012
Slide 1: Analyst/Media Briefing FY2011-12 Results
Singapore Airlines Group Analyst/Media Briefing FY2011-12 RESULTS 10 MAY 2012 THE PARENT AIRLINE FY2011/12 RESULTS
Slide 2: The Parent Airline Company Results – FY2011/12
THE PARENT AIRLINE COMPANY RESULTS – FY2011/12 Better/ Better/ 4Q/11 (Worse) 2011/12 (Worse) $million $million $million $million Total Revenue 3,016 90 12,070 331 Total Expenditure 3,026 (193) 11,889 (1,001) - Fuel Cost 1,251 (175) 4,889 (1,133) - Fuel Hedging Gain (20) (13) (20) 70 - Ex-fuel Cost 1
Slide 3: Operating Performance – FY2011/12
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2011/12 % % 4Q/11 Change 2011/12 Change Passenger Yield 11.7 -3.3 11.8 -0.8 (¢/pkm) Passenger Unit Cost 9.4 +3.3 9.2 +3.4 (¢/ask) Passenger Unit Cost 5.1 -3.8 4.9 -7.5 Excluding Fuel (¢/ask) Passenger Breakeven 80.3 +5.1 pts 78.0 +3.2 pts Load Fac
Slide 4: Operating Performance – Passenger Load Factor
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor (%) Breakeven Load Factor 84 82.7 80.3 80 78.0 78.4 78.5 76.5 77.4 76 74.8 72 73.6 68 69.4 64 0 07/08 08/09 09/10 10/11 11/12 Slide 7 THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor (%) Breakeven Load Facto
Slide 5: Passenger Yield and Fuel Price and Expenditure Trend
THE PARENT AIRLINE COMPANY - PASSENGER YIELD Monthly Pax Yields (Including Fuel Surcharge) 2008-09 2010-11 2011-12 ¢/pkm 14 13 12.4 12.2 12 11.6 11.6 11.6 11.4 11 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Slide 9 THE PARENT AIRLINE COMPANY FUEL PRICE AND EXPENDITURE - TREND Fuel Price before
Slide 6: Cost Composition – FY2011/12
THE PARENT AIRLINE COMPANY COST COMPOSITION – FY2011/12 Others 19.8% (-1.5% pts) Fuel 40.9% Passenger Costs (+5.9% pts) 5.0% (-0.1% pt) Handling Costs 7.0% (-0.4% pt) Aircraft Depreciation Staff Costs & Rentals 12.6% 14.7% (-2.3% pts) (--1.6% 1.6 pts) Slide 11 THE PARENT AIRLINE COMPANY TOP 5 EXPEND
Slide 7: Fuel Expenditure – FY2011/12
THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – FY2011/12 ($ million) 5,500 +169 4,869 +1,254 5,000 (+1,064) -289 -70 4,500 4,000 3,805 Higher Higher Weaker Hedging 3,500 weighted volume US Dollar gain vs average uplifted hedging 3,000 fuel price loss 0 FY10/11 Price Volume Exchange Hedging FY11/12 Sl
Slide 8: Group Revenue and Expenditure – FY2011/12
GROUP REVENUE – FY2011/12 ($ million) Full Year 16,500 Revenue 15,973 15,997 16,000 $14,858M 15,500 15,000 14,858 Year-on-Year 14,525 $333M 14,500 +2.3% 14,000 13,500 13,000 12,707 12,500 0 07/08 08/09 09/10 10/11 11/12 Slide 15 GROUP EXPENDITURE – FY2011/12 ($ million) Half Full Year Year 16,500 Ex
Slide 9: Group Operating Profit – FY2011/12
GROUP OPERATING PROFIT – FY2011/12 ($ million) Half Full Year Year 2,500 Op Revenue Profit 2,125 $7,097M $286M 2,000 Year-on-Year 1,500 1,271 $985M 904 -77.5% 1,000 500 286 63 0 07/08 08/09 09/10 10/11 11/12 Slide 17 GROUP OPERATING PROFIT – FY2011/12 2010/11 2011/12 ($ million) 600 509 500 400 345
Slide 10: Group Operating Profit and Contribution by Company
GROUP OPERATING PROFIT – FY2011/12 2010/11 2011/12 ($ million) 600 500 400 -352 300 -69.2% -222 200 -64.3% -240 100 -95.6% -171 (n.m.) 0 -100 Q1 Q2 Q3 Q4 n.m. not meaningful Slide 19 CONTRIBUTION TO GROUP OPERATING PROFIT – FY2011/12 ($ million) 2011/12 2010/11 Change % Change Singapore Airlines 181
Slide 11: Group Net Profit – FY2011/12
GROUP NET PROFIT – FY2011/12 ($ million) Half Full Year Year 2,500 Net Revenue Profit 2,049 $7,097M $336M 2,000 Year-on-Year 1,500 $756M 1,062 1,092 -69.2% 1,000 500 336 216 0 07/08 08/09 09/10 10/11 11/12 Slide 21 GROUP NET PROFIT – FY2011/12 ($ million) 1,200 1,092 1,000 800 -756 Lower Lower gain
Slide 12: Dividends – FY2011/12
DIVIDENDS – FY2011/12 2011/12 2010/11 Earnings Per Share (¢) 28.3 91.4 Interim Dividend Per Share (¢) 10.0 20.0 Proposed Final Dividend Per 10.0 40.0 Share (¢) Total Ordinary Dividend Per 20.0 60.0 Share (¢) Slide 23 OUTLOOK FOR 2012/13
Slide 13: Outlook and Fleet Development
OUTLOOK Fuel price volatility Global economic outlook Global PMI indicates expansion at a slower rate Forward bookings Slide 25 FLEET DEVELOPMENT No. of Aircraft Operating Fleet at 31 March 12 100 IN: Delivery of A380 + 3 Delivery of A330 + 1 Reinstatement of B777 + 2 OUT: Decommissioned B77
Slide 14: Group Capital Expenditure and Fuel Hedging Position
GROUP CAPITAL EXPENDITURE FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 Aircraft 1,350 2,000 2,950 2,800 1,600 Other Assets 200 200 150 150 200 Total 1,550 2,200 3,100 2,950 1,800 Slide 27 GROUP FUEL UPLIFT AND HEDGING POSITION Percentage hedged for FY12/13 as of 9 May 2012 (%) 25 Average hedged price
Slide 15: Meeting the Challenges
MEETING THE CHALLENGES MEETING THE CHALLENGES Be Flexible and Nimble Focus on 3 Key Pillars Sustainable Growth Cost Management Slide 30
Slide 16: Meeting the Challenges: Flexible and Nimble
MEETING THE CHALLENGES Be Flexible and Nimble – Changing demand patterns • Swift capacity adjustments – New opportunities • New points • New market segments Slide 30-A MEETING THE CHALLENGES Focus on 3 Key Pillars 1. Service Excellence • Highest quality of service from our cabin crew and ground staf
Slide 17: Meeting the Challenges: Key Pillars
MEETING THE CHALLENGES Focus on 3 Key Pillars 2. Product Leadership • Cabin Retrofit Programs Retrofit of 7 B777-300s completed in August 2011 Retrofit of 10 B777-200ERs to be completed by July 2013 • Next generation of First and Business Class seats Slide 30-C MEETING THE CHALLENGES Focus on 3
Slide 18: Sustainable Growth and Thank You
MEETING THE CHALLENGES Sustainable Growth – FY12-13 SQ-MI Growth – New Deliveries • In FY12-13 : Delivery of 3 x A380s • 2013 : Commence delivery of 8 x B777-300ERs and 15 x A330s • 2014 : Commence delivery of 20 x B787s and 20 x A350s Slide 30-E Thank You