Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — H1 FY2019/20 Earnings Presentation
24 slides from Singapore Airlines's earnings presentation, Nov 5, 2019
Slide 1: SIA Group 1H FY2019-20 Results
SIA GROUP 1H FY2019-20 Results 5 November 2019
Slide 2: Group Financial Results
Group Financial Results The copyright in this material is owned by Singapore Airlines Ltd. This material may not be modified, reproduced, distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Singapore Airlines Ltd. 2
Slide 3: Key Takeaways – 1H FY19/20 Results
Group Financial Results Key Takeaways – 1H FY19/20 Results Passenger traffic growth continues to support revenue improvements SIA Pax: Captured strong demand, outstripping capacity growth to achieve record passenger load factor of 84.6% for the first half. RASK improved 2.4%. SilkAir: Notwithsta
Slide 4: Q2 & 1H FY19/20 Financial Results
Group Financial Results Q2 & 1H FY19/20 Q2 Q2 Better/ 1H 1H Better/ FY19/20 FY18/19 (Worse) FY19/20 FY18/19 (Worse) ($’m) ($’m) (%) ($’m) ($’m) (%) Total Revenue 4,222.3 4,062.1 3.9 8,324.5 7,906.6 5.3 Total Expenditure 4,009.2 3,829.2 (4.7) 7,911.4 7,480.6 (5.8) -- Net Fuel Cost 1,176.2 1,156.1 (1.
Slide 5: Group Operating Statistics
Group Operating Statistics Pax traffic growth across all airlines; record Q2 and 1H PLF for the Group CAPACITY, CARRIAGE, AND PAX CARRIED Q2 Change 1H Change DISTRIBUTION (1H FY19/20) FY19/20 (%) FY19/20 (%) Pax Pax carriage (PKM ‘m) 28,314.9 8.2 54,943.2 8.6 Carried Capacity (ASK ‘m) 32,972.9 7.3 6
Slide 6: Group Revenue 1H FY19/20
Group Revenue 1H FY19/20 Improvement led by strong pax flown revenue $M 4,400 4,341.5 4,222.3 4,200 4,102.2 1H FY19/20 4,062.1 4,075.1 $8,324.5M 4,000 Year-on-Year 3,844.5 $417.9M 3,800 (+5.3%) 3,600 Q1 Q2 Q3 Q4 Q1 Q2 FY18/19 FY18/19 FY18/19 FY18/19 FY19/20 FY19/20 The copyright in this material is
Slide 7: Group Revenue Breakdown 1H FY19/20
Group Revenue Breakdown 1H FY19/20 Strong pax traffic growth drove improvements in RASK and revenue Pax Flown Revenue Cargo and Mail 6,808.9 966.2 (+514.4, +8.2%) (-137.8, -12.5%) Engineering Services 81.8% 11.6% 237.9 (+11.8, +5.2%) Other Pax Revenue 164.1 Others (-16.7, -9.2%) 147.4 (+46.2, +45.7%
Slide 8: Group Expenditure 1H FY19/20
Group Expenditure 1H FY19/20 Higher group cost due to expansion in operations $M 4,100 4,009.2 3,953.9 3,902.2 3,900 3,829.2 3,821.6 1H FY19/20 $7,911.4M 3,700 3,651.4 Year-on-Year $430.8M 3,500 (+5.8%) 3,300 Q1 Q2 Q3 Q4 Q1 Q2 FY18/19 FY18/19 FY18/19 FY18/19 FY19/20 FY19/20 The copyright in this mat
Slide 9: Group Expenditure Breakdown 1H FY19/20
Group Expenditure Breakdown 1H FY19/20 Ex-fuel costs rose largely from expansion in operations Pax Costs 387.4 Others Fuel Cost After (+25.6, +7.1%) 592.6 Hedging (-4.5, -0.8%) 2,348.9 Sales Costs^ 424.9 (+113.4, +5.1%) (+54.8, +14.8%) 8.3% 13.5% 7.4% 6.0% 4.9% CASK CASK ex-fuel AMO Costs 5.4% 19.2%
Slide 10: Group Expenditure – Fuel Cost 1H FY19/20
Group Expenditure – Fuel Cost 1H FY19/20 Net fuel cost rose, primarily contributed by an increase in fuel volume consumed on capacity growth $M 2,400 +35.7 2,348.9 +118.5 2,300 +113.4 Stronger (+5.1%) 2,235.5 -248.4 USD against +207.6 SGD 2,200 Higher uplift 2,100 2,000 Lower Lower hedging 1,900 wei
Slide 11: Group Operating Profit 1H FY19/20
Group Operating Profit 1H FY19/20 Gains from capacity and passenger traffic growth partially offset by weaker cargo revenue $M 500 400 387.6 1H FY19/20 $413.1M 300 253.5 232.9 200.0 213.1 193.1 200 Year-on-Year $12.9M (-3.0%) 100 0 Q1 Q2 Q3 Q4 Q1 Q2 FY18/19 FY18/19 FY18/19 FY18/19 FY19/20 FY19/20 Th
Slide 12: Group Operating Profit 1H FY19/20 Bridge
Group Operating Profit 1H FY19/20 Gains from capacity and passenger traffic growth partially offset by weaker cargo revenue $M Largely: 1,000 +514.4 -137.8 Staff costs (+158.6) Depreciation and leased aircraft charges (+85.0) Landing, parking and overflying (+34.7) +34.4 Passenger and sales
Slide 13: Operating Results for the Main Companies in the Group
Operating Results for the Main Companies in the Group 1H FY19/20 1H 1H Better/ Operating Profit /(Loss) FY19/20 FY18/19 (Worse) ($’m) ($’m) (%) SIA (Parent Airline Company) 465.0 418.2 +11.2 SilkAir (19.1) (2.8) n.m. Scoot (76.9) (10.0) n.m. SIAEC Group 37.3 21.5 +73.5 The copyright in this material
Slide 14: Composition of Change in SIA Parent Airline Operating Results
Composition of Change in SIA (Parent Airline Company)’s Operating Results 1H FY19/20 Operating profit improved on strong revenue growth $M 1,000 +480.8 -137.8 800 -101.0 Other major items include: Lower cargo -139.6 Higher sales costs (-42.9) flown Higher LPO (-31.8) 600 revenue Higher Non-sch
Slide 15: Group Profit Attributable to Owners of the Parent
Group Profit Attributable to Owners of the Parent 1H FY19/20 Improvement in First Half net profit $M 300 284.1 1H FY19/20 202.6 200 $205.6M 139.6 111.1 Year-on-Year 100 94.5 $9.6M (+4.9%) 56.4 0 Q1 Q2 Q3 Q4 Q1 Q2 FY18/19 FY18/19 FY18/19 FY18/19 FY19/20 FY19/20 The copyright in this material is owned
Slide 16: Profit Attributable to Owners: Associates and JVs
Group Profit Attributable to Owners of the Parent 1H FY19/20 Improved results from associates and JVs, partially offset by lower operating profit and higher net finance charges $M 250 +19.0 -53.6 +36.2 +7.7 205.6 196.0 -12.9 Higher +13.2 200 share of +9.6 profits (+4.9%) Lower from JVs Lower Lower s
Slide 17: SIA Group Per Share Data
SIA Group Per Share Data 1H FY19/20 1H FY18/19 EBITDA per share ($) 1.21 0.85 Basic earnings per share (¢) 17.4 16.6 Interim Dividend per share (¢) 8.0 8.0 As at 30 Sep’19 As at 31 Mar’19 Net Asset Value per share ($) 9.96 11.22 The copyright in this material is owned by Singapore Airlines Ltd. This
Slide 18: Key Coverage Ratios
Key Coverage Ratios Ratios affected by the adoption of IFRS 16 Leases from 1 Apr’19 Leverage Interest coverage Total DebtR1 / Equity EBIT / Interest expense 1.00 10.0 0.74x 6.1x 0.50x 0.50 5.0 3.5x 0.00 0.0 As at 31 As at 30 1H 1H Mar'19 Sep'19 FY18/19 FY19/20 R1 Total debt: Borrowings + Lease Liabi
Slide 19: Additional Updates
Additional Updates The copyright in this material is owned by Singapore Airlines Ltd. This material may not be modified, reproduced, distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Singapore Airlines Ltd. 19
Slide 20: Group Capacity Growth
Group Capacity Growth External events moderate growth in capacity for FY19/20 SIA Group passenger operations will grow at approx. 6% in FY19/20 Projected Capacity SIA’s capacity growth driven by: (FY19/20 vs FY18/19) o Ultra long-haul operations to US SIA +7% o Cabin densification from fleet renew
Slide 21: Group Fleet Development
Group Fleet Development SIA Group to operate 208 aircraft by end of FY19/20 Operating Fleet As at 30 Sep’19 In Out As at 31 Mar’20 777-200 4 -3 1 777-200ER 4 -1 3 777-300 5 5 777-300ER 27 27 A380-800 19 19 A330-330 12 -4 8 A350-900 41 +7 48 787-10 14 +1 15 747-400F 7 7 SIA Total 133 +8 -8 133 A319 2
Slide 22: Group Capital Expenditure
Group Capital Expenditure Elevated capital expenditure to support fleet renewal and capacity growth Projected Capital FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 Expenditure ($’m) Aircraft 5,400 5,600 5,400 4,500 3,800 3,700 Others 300 400 400 300 200 200 Total 5,700 6,000 5,800 4,800 4,000 3,90
Slide 23: Group Fuel Hedging Position
Group Fuel Hedging Position As at 22 October 2019 2H FY19/20 Jet Fuel Brent Percentage hedged (%) 75 3 Average hedged price (USD/BBL) 76 54 FY20/21 Jet Fuel Brent Percentage hedged (%) 29 35 Average hedged price (USD/BBL) 77 58 FY21/22 – FY24/25 Jet Fuel Brent Percentage hedged (%) up to 50% - Avera
Slide 24: Thank you
Thank you
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