Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — FY2022/23 Earnings Presentation
44 slides from Singapore Airlines's earnings presentation, May 17, 2023
Slide 1: SIA Group Analyst/Media Briefing FY22/23 Full Year Results
SIA Group Analyst/Media Briefing FY22/23 FY22/23Full FullYear YearResults Results (Ended (Ended31 31March March2023) 2023) 17 17May May2023 2023 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has
Slide 2: Presentation by Executive Vice President Finance & Strategy
PRESENTATION BY: Executive Vice President Finance & Strategy Mr. Tan Kai Ping 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. T
Slide 3: Group Financial Results: Key Takeaways
Group Financial Results Key Takeaways FY22/23 Record operating profit of $2,692.1 million, a reversal of $3,301.8 million from last year ▪ Passenger revenue rose $10,559.7 million on the back of record PLF and RASK ▪ Cargo revenue fell $735.6 million with lower loads and yields as demand for air fre
Slide 4: Group Operating Statistics
Group Operating Statistics The Group’s passenger capacity reached 79% of pre-Covid levels in March 2023 Percentage vs pre-Covid (January 2020) ASK Q4 QoQ 90.7% +2.4% 85.9% 80.5% 83.9% 2H vs 1H 75.1% 79.1% 73.5% 72.0% 77.0% 74.2% 76.9% +18.5% 67.6% 62.8% 66.7% FY22/23 YoY 60.7% 56.8% 56.3% +94.0% 51.
Slide 5: Group Financial Results
Group Financial Results Better/ Better/ 2H 1H Better/ Better/ FY22/23 FY21/22 (Worse) (Worse) FY22/23 FY22/23 (Worse) (Worse) ($’M) ($’M) ($’M) (%) ($’M) ($’M) ($’M) (%) Total Revenue 17,774.8 7,614.8 10,160.0 133.4 9,358.3 8,416.5 941.8 11.2 Total Expenditure 15,082.7 8,224.5 (6,858.2) (83.4) 7,900
Slide 6: Group Revenue
Group Revenue FY22/23: Pax flown revenue rebounded to record high; cargo revenue moderated, albeit 83% above pre-Covid levels Group Revenue ($'M) QoQ $334.5M Passenger Flown Revenue Sustained momentum in travel recovery (-6.9%) Cargo Revenue Full Others re-opening 4,846.4 of borders in Singapore 4,4
Slide 7: Group Operating Statistics - Passenger
Group Operating Statistics - Passenger FY22/23: Strong rebound in passenger demand with record RASK and PLF Record Record ₵/ask Group FY22/23 Quarterly Quarterly % Record RASK: 10.0¢/ask Group Group 12 Record PLF: 85.4% RASK PLF 100 10.6 87.5 FY19/20 Group PLF 90 10 (82.4%) 80 70 8 FY19/20 Group RAS
Slide 8: SIA and Scoot Operating Statistics - Passenger
SIA and Scoot Operating Statistics - Passenger FY22/23: Strong recovery for both airlines. Record RASK and PLF for FSC; Record RASK and elevated PLF for LCC FSC: SIA Operating Statistics LCC: Scoot Operating Statistics Record Quarterly ₵/ask % ₵/ask Record Record % RASK Quarterly Quarterly and PLF R
Slide 9: Group Operating Statistics - Cargo
Group Operating Statistics - Cargo FY22/23: Weaker performance as demand softened while bellyhold capacity increased; cargo yields remain elevated ₵/ltk Record % 100 Quarterly Cargo FY22/23 100 Yield Yield: 68.5¢/ltk 90 CLF: 57.4% 90 81.5 80 80 70 70 FY19/20 CLF 60 60 (59.3%) 50 50 40 40 FY19/20 Yie
Slide 10: Group Expenditure
Group Expenditure FY22/23: Group expenditure increased 83.4% YoY on expansion of operations Group Expenditure ($'M) QoQ $282.2M FY22/23 Net fuel cost : $5,209.4M (+137.9% YoY) FY22/23 Non-fuel expenditure^: $9,873.3M (+63.6% YoY) (-6.9%) Net Fuel Cost (+61.5%, excluding fair value movements on fuel
Slide 11: Group Expenditure
Group Expenditure FY22/23: Group expenditure increased 83.4% YoY on expansion of operations 34.5 Handling Charges $951.5M Depreciation & Leased Aircraft Charges % (+$304.7M, +47.1%) $2,028.6M (+$84.1M, +4.3%) Sales Costs $814.4M Staff Costs (+$575.7M, +241.2%) 13.4% $3,055.8M 6.3% (+$1,582.2M, +107.
Slide 12: Net Fuel Cost and Fuel Hedging
Net Fuel Cost and Fuel Hedging YoY increase driven by a 49.6% increase in fuel prices and higher uplift, partially offset by higher hedging gains Group Fuel Cost Analysis ($'M) +1,942.4 +112.5 5,209.4 -529.7 Strengthening Higher of USD against +1,494.9 hedging SGD $3,020.1M Higher gain (+137.9%) wei
Slide 13: Fuel Hedging Status
Fuel Hedging Status Group has hedges in place up to Q3 FY24/25, with additional gains locked in from closed-out trades Fuel Hedging Position Percentage Average (as at 5 May 2023) Hedged Hedged Price (%) (USD/BBL) Brent MOPS Brent MOPS Q1 FY23/24^ 40 - 60 - Q2 - Q4 FY23/24 10 29 79 93 Q1 - Q3
Slide 14: Group Operating Performance
Group Operating Performance FY22/23: Record operating profit Group Operating Performance ($'M) QoQ Record Quarterly $52.3M Op Profit (-6.9%) 755.0 678.0 702.7 556.4 2H vs 1H $223.3M (+18.1%) 76.3 FY22/23 -66.6 $2,692.1M -274.4 -345.0 YoY $3,301.8M Q1 FY21/22 Q2 FY21/22 Q3 FY21/22 Q4 FY21/22 Q1 FY22/
Slide 15: Group Operating Performance (YoY progression)
Group Operating Performance (YoY progression) Reversal from operating loss to operating profit driven by strong improvement in revenue Group Operating Performance ($'M) +10,559.7 -735.6 Largely: Lower cargo • Higher handling charges (-304.7) flown • Higher LPO charges (-205.3) revenue • Foreign exch
Slide 16: Operating Results for the Main Companies of the Group
Operating Results for the Main Companies of the Group FY22/23: Record revenue and operating profits for SIA and Scoot Better/ Better/ 2H 1H Better/ Better/ FY22/23 FY21/22 (Worse) (Worse) FY22/23 FY22/23 (Worse) (Worse) ($M) ($M) $M (%) ($M) ($M) $M (%) Full-service carrier 2,601.2 (111.9) 2,713.1 n
Slide 17: Group Net Performance
Group Net Performance FY22/23: Record net profit Group Net Performance ($'M) QoQ $26.1M 628.0 601.9 (-4.2%) 556.5 370.4 2H vs 1H $303.0M (+32.7%) 84.7 FY22/23 $2,156.8M -209.9 YoY -409.2 -427.6 $3,118.8M (n.m.) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY21/22 FY21/22 FY21/22 FY21/22 FY22/23 FY22/23 FY22/23 FY22/23 S
Slide 18: Group Net Performance (YoY progression)
Group Net Performance (YoY progression) Turnaround from net loss to record net profit; driven by better operating performance and lower net finance charges, and partially offset by tax expense vs tax credit last year Group Net Performance ($'M) Better Tax expense operating vs tax credit performance
Slide 19: Group Financial Results
Group Financial Results FY22/23 FY21/22 Earnings / (Loss) Per Share (cents) - Basic R1 35.6 (16.2) - Adjusted Basic R2 72.6 (32.4) - Diluted R3 35.1 (16.2) EBITDA ($ million) R4 5,137.2 1,301.2 EBITDA margin (%) R5 28.9 17.1 Dividend Per Share (cents) - Interim 10.0 - - Final (Proposed) 28.0 - Divid
Slide 20: Group Financial Position
Group Financial Position As at 31 March 2023 As at 31 March 2022 Total assets ($’M) 49,101.2 48,671.0 Total debt ($’M) 15,339.3 15,694.8 Total cash and bank balances ($’M) 16,327.6 13,762.7 Total liabilities ($’M) 28,851.4 25,870.6 Equity attributable to Owners of the Company ($’M) 19,858.3 22,411.9
Slide 21: Redemption of Mandatory Convertible Bonds (MCBs)
Redemption of Mandatory Convertible Bonds (MCBs) 50% redemption of the MCBs issued in 2021, on 26 June 2023 FY22/23 FY22/23 Proforma After Redemption Earnings Per Share (cents) Principal - Basic R1 35.6 43.6 - Adjusted Basic R2 72.6 no change Amount - Diluted R3 35.1 42.7 ($3,098 mil) EBITDA ($ mill
Slide 22: Group Fleet Development
Group Fleet Development Net increase of six aircraft by the end of FY23/24 Operating Fleet As at 31 March 2023 In Out As at 31 March 2024 SIA 777-300ER 23 -2 21 A380-800 12 12 A350-900 61 +2R1 63 787-10 15 +8R2 23 737-800 7 7 737-8 15 +1R3 16 747-400F 7 7 Total 140 +11 -2 149 Scoot 787-8 10 +1R4 11
Slide 23: Projected Group Capital Expenditure
Projected Group Capital Expenditure Revised guidance due to delays in 777-9s and 787s deliveries, and recent revised order book with Boeing Projected Capital Expenditure FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 ($’M) Aircraft 1,800 3,200 4,100 3,600 3,100 Others 500 200 200 200 200 Total 2,300 3,400
Slide 24: Presentation by Chief Executive Officer
PRESENTATION BY: Chief Executive Officer Mr. Goh Choon Phong 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
Slide 25: Rising to the Challenge and Emerging Stronger; Strengthening Foundation for the Future
1 Rising to the Challenge and Emerging Stronger 2 Strengthening Foundation for the Future 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 externa
Slide 26: Rising to the Challenge and Emerging Stronger
Rising to the Challenge and Emerging Stronger 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
Slide 27: Looking back on an exciting and rewarding year
Rising to the Challenge and Emerging Stronger Looking back on an exciting and rewarding year Emerging strong Leading network recovery 100% Pre-Covid (Jan20): 137 140 90% SIA 120 80% Record Full Year Results for the SIA Group %ASK vs Pre-covid (Jan20) 70% 100 +23%pts No. of destinations 60% Revenue $
Slide 28: We said we will emerge strong, and we did
Rising to the Challenge and Emerging Stronger We said we will emerge strong, and we did 1 May 2020 30 March 2020 “We have begun to prepare for the eventual recovery in air travel 6 June 2020 “This crisis has taught us many lessons, including the need to be demand by relooking every aspect of our ope
Slide 29: Our quick and strong recovery is a testament of our people
Rising to the Challenge and Emerging Stronger Our quick and strong recovery is a testament of our people’s resilience and hard work Shoring up our finances Preserving core capabilities Building liquidity Staff measures ▪ Announced plans for Rights Issue to raise up to ▪ Hiring freeze, compulsory no-
Slide 30: Gearing up for recovery
Rising to the Challenge and Emerging Stronger Our quick and strong recovery is a testament of our people’s resilience and hard work Gearing up for recovery SIA Group Operating Stats Maintaining our fleet 100% 4000 ▪ Parked 60% of our aircraft in long term storage at the height of the 3500 pandemic.
Slide 31: Strengthening Foundation for the Future
Strengthening Foundation for the Future 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, repr
Slide 32: The airline industry continues to face challenges
Strengthening Foundation for the Future The airline industry continues to face challenges Other airlines Weakening cargo Inflationary War in Ukraine and High fuel cost adding demand pressures escalating US- international China tensions capacity Slide 32 The copyright in this material (other than in
Slide 33: Three pillars of our SIA brand promise
Strengthening Foundation for the Future Staying true to the three pillars of our SIA brand promise The SIA Brand Promise Service Product Network Excellence Leadership Connectivity Slide 33 The copyright in this material (other than in respect of information from external sources) is owned by Singapo
Slide 34: Service Excellence
Strengthening Foundation for the Future Service Excellence Providing seamless and personalised customer experience ▪ Award-winning cabin crew providing warm and caring service. ▪ Voice of Customer data and analytics to identify and address customer pain points. ▪ The Customer Experience Management s
Slide 35: Product Leadership
Strengthening Foundation for the Future Product Leadership Investments to delight customers on Constant innovation to elevate the Relentless pursuit to offer industry- the ground inflight dining experience leading inflight products ▪ ~$50M invested to upgrade our flagship SilverKris ▪ The Singapore
Slide 36: Network Connectivity
Strengthening Foundation for the Future Network Connectivity Enhancing our network to over 220 destinations Europe North Asia through our 33 codeshare partners • Lufthansa Group • All Nippon Airways • Scandinavian Airlines Americas • United Airlines Southeast Asia • Malaysia Airlines West Asia & Afr
Slide 37: Stronger as a Group with the Portfolio Strategy
Strengthening Foundation for the Future Stronger as a Group with the Portfolio Strategy Flexibility to offer the Cross-selling and right products to match connectivity between SIA demand profile and Scoot networks 100% SIA 90% Scoot 75% 79% %ASK vs pre-Covid 50% ▪ With its low cost model and regiona
Slide 38: Continued investments in our Multi-Hub Strategy
Strengthening Foundation for the Future Continued investments in our Multi-Hub Strategy Air India and Vistara ▪ Projected to become the third largest economy in the world by 20271, and already the world’s third largest aviation market, the India aviation sector holds much untapped potential. ▪ Our c
Slide 39: KrisFlyer frequent flyer programme
Strengthening Foundation for the Future Enhancing customer loyalty through the KrisFlyer frequent flyer programme KrisFlyer – SIA Group Loyalty Expanded membership ▪ 6.7M KrisFlyer members: +44% vs FY19/20 ▪ 11% of new members acquired from other SIA Group entities such as Kris+, Pelago, and KrisSho
Slide 40: Build new revenue streams and expand the SIA Ecosystem
Strengthening Foundation for the Future Continue to build new revenue streams and expand the SIA Ecosystem Additional Revenue Streams ▪ Expanded to 21 countries, 81 destinations and over 2,500 As of Mar 2023, experiences ▪ 1.7 million downloads ▪ Completed 106K bookings in Core Business 2022 ▪ 275K
Slide 41: Investments in Digital capabilities
Strengthening Foundation for the Future Investments in Digital capabilities 5 years on… Driving Co-Innovation ▪ Staff are encouraged to be advocates and collaborators of innovation through events such as webinars, 1,877 roadshows, and co-innovation workshops. Digital ideas initiated by staff ▪ Staff
Slide 42: Care for the Environment, Community, and our People
Strengthening Foundation for the Future Care for the Environment, Community, and our People Sustainability Community and People 6yrs 9mths 15yrs 8mths Corporate Social Responsibility (SIA Group fleet age*) (Industry average fleet age*) *as at May23 ▪ In FY22/23, 375 community involvement activities
Slide 43: We are well positioned to succeed
Strengthening Foundation for the Future We are well positioned to succeed The outlook for passenger demand remains robust in the near term, and the Asia-Pacific remains a dynamic region for growth “Notwithstanding the relatively slow pace of recovery to date, we “Growth in Asia and the Pacific is pr
Slide 44: 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