Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — Q3 FY2019/20 Earnings Presentation
29 slides from Singapore Airlines's earnings presentation, Feb 17, 2020
Slide 1: Q3 and 9M FY2019-20 Results
Q3 and 9M FY2019-20 Results 17 February 2020
Slide 2: Record breaking Q3 for SIA Group
Record breaking Q3 for SIA Group Strong passenger demand drives five new record highs 1 Record quarterly available seat-km – 45,506 million 2 Record quarterly revenue passenger-km – 38,972 million 3 Record passenger load factor for any Q3 – 85.6% 4 Record quarterly passenger uplift – 10.1 million pa
Slide 3: Transformation
Transformation SIA RASK and CASK ex-fuel margins moving towards the right trajectory 9.0 RASK (¢/ASK) 8.8 8.5 8.5 8.0 8.2 7.5 TRANSFORMATION Q3 FY19/20: 7.0 Q1 FY14/15: Q4 FY16/17: +3.3¢/ASK +3.6 ¢/ASK +2.0¢/ASK 6.5 6.2 CASK ex-fuel (¢/ASK) 6.0 (before IFRS 1) 5.5 5.5 CASK ex-fuel (¢/ASK) 5.3 5.0 (a
Slide 4: COVID-19 outbreak poses challenges to SIA Group
COVID-19 outbreak poses challenges to SIA Group Demand for travel will be adversely affected ▪ Safety and well-being of passengers and staff is highest priority ▪ Stepped up cleaning and disinfection of cabins and company premises ▪ In-flight service modified ▪ Suspended crew layovers in China ▪ Soc
Slide 5: 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.
Slide 6: Key Takeaways – Q3 FY19/20 Results
Group Financial Results Key Takeaways – Q3 FY19/20 Results Strong load factor and improved RASK performance for all passenger airlines ▪ SIA Pax: Captured strong demand, outstripping capacity growth to achieve record y-o-y passenger load factor of 85.6%. RASK improved 1.1%. ▪ SilkAir: Capacity decli
Slide 7: Double-digit rates of increase in operating profit and net profit for the quarter
Group Financial Results Double-digit rates of increase in operating profit and net profit for the quarter Q3 Q3 Better/ 9M 9M Better/ FY19/20 FY18/19 (Worse) FY19/20 FY18/19 (Worse) ($’m) ($’m) (%) ($’m) ($’m) (%) Total Revenue 4,470.6 4,341.5 3.0 12,795.1 12,248.1 4.5 Total Expenditure 4,022.1 3,95
Slide 8: Operating Statistics
Group Operating Statistics Overall passenger traffic growth; record Q3 PLF for the Group Q3 Change 9M Change CAPACITY, CARRIAGE, AND PAX CARRIED FY19/20 (%) FY19/20 (%) DISTRIBUTION (Q3 FY19/20) Pax carriage (PKM ‘m) 28,851.8 9.7 83,795.0 9.0 Capacity (ASK ‘m) 33,708.9 6.9 98,684.5 7.2 Pax Pax load
Slide 9: Revenue Q3 & 9M FY19/20
Group Revenue Q3 & 9M FY19/20 Improvement led by strong pax flown revenue, and partially offset by lower cargo revenue $M 4,700 4,500 4,470.6 4,341.5 9M FY19/20 4,300 4,222.3 $12,795.1M 4,075.1 4,102.2 4,100 4,062.1 Year-on-Year 3,900 3,844.5 $547.0M (+4.5%) 3,700 3,500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY18/19
Slide 10: Revenue Breakdown Q3 FY19/20
Group Revenue Breakdown Q3 FY19/20 Strong pax traffic growth drove improvements in RASK and revenue Flown Revenue RASK Yields Carriage/Load Capacity Q3 FY19/20 y-o-y ($’m) y-o-y (%) y-o-y (%) y-o-y (%) y-o-y (%) SIA (Pax) +224.9 +1.1 -1.0 +9.7 +6.9 SilkAir -11.6 +3.5 -1.8 -2.9 -8.2 Scoot +26.0 +4.1
Slide 11: Breakdown of Change in Yield & RASK ex-FX
SIA Group – Q3 FY19/20 Breakdown of Change in Yield & RASK ex-FX RASK against RASK (ex-FX) Yields against Yields (ex-FX) last year against last year last year against last year % % % % SIA (Pax) + 1.1 + 2.2 - 1.0 - 0.2 SilkAir + 3.5 + 3.7 - 1.8 - 2.2 Scoot + 4.1 + 3.9 - 1.7 - 0.8 SIA (Cargo) n.a. n.
Slide 12: Expenditure Q3 & 9M FY19/20
Group Expenditure Q3 & 9M FY19/20 Higher group cost due to expansion in operations $M 4,100 4,009.2 4,022.1 3,953.9 3,902.2 3,900 3,829.2 3,821.6 9M FY19/20 $11,933.5M 3,700 3,651.4 Year-on-Year $499.0M 3,500 (+4.4%) 3,300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY18/19 FY18/19 FY18/19 FY18/19 FY19/20 FY19/20 FY19/20
Slide 13: Expenditure Breakdown Q3 FY19/20
Group Expenditure Breakdown Q3 FY19/20 Lower net fuel cost; higher ex-fuel cost mainly attributable to increase in capacity as well as higher traffic 4.9% 7.4% CASK CASK ex-fuel 5.4% 5.4% 29.7% Q3 FY19/20 y-o-y (%) y-o-y (%) 5.6% 6.0% SIA (Pax) -3.6 -1.9 SilkAir +3.5 +6.3 8.3% 19.2% Scoot +1.9 +2.9
Slide 14: Expenditure – Fuel Cost Q3 FY19/20
Group Expenditure – Fuel Cost Q3 FY19/20 Lower net fuel costs mainly due to decrease in average jet fuel price post-hedging $M 1,300 1,252.0 -176.8 +26.6 -5.0 1,207.0 1,200 +110.2 -45.0 Weaker Higher USD against (-3.6%) uplift SGD 1,100 Lower Hedging weighted loss vs average fuel hedging 1,000 price
Slide 15: Depreciation and Leased Aircraft Charges
SIA Group – Q3 FY19/20 Depreciation and Leased Aircraft Charges $M 700 +109.1 -148.3 650 600 +76.1 Recognition of 550 536.4 depreciation of ROU assets Lower lease +36.9 499.5 rentals (+7.4%) 500 Higher depreciation 450 400 Q3 FY18/19 Depreciation Depreciation of Lease rentals Q3 FY19/20 ROU assets T
Slide 16: Operating Profit Q3 & 9M FY19/20
Group Operating Profit Q3 & 9M FY19/20 Gains from capacity and passenger traffic growth partially offset by weaker cargo revenue $M 600 10.0 10.0 9M FY19/20 500 8.9 Op. Profit 448.5 $861.6M 8.0 400 387.6 48.0M 6.2 5.7 (+5.9%) 6.0 300 5.0 5.0 4.9 253.5 232.9 193.1 200.0 213.1 4.0 9M Operating 200 Pro
Slide 17: Operating Profit Q3 FY19/20
Group Operating Profit Q3 FY19/20 Gains from capacity and passenger traffic growth partially offset by weaker cargo revenue Largely: ▪ Depreciation and leased aircraft charges (+36.9) ▪ Sales costs (+32.8) $M ▪ Expected credit loss (“ECL”) on outstanding receivables 700 from NokScoot (+31.9) -112.1
Slide 18: Operating Results for the Main Companies in the Group
Operating Results for the Main Companies in the Group Q3 & 9M FY19/20 Q3 Q3 Better/ 9M 9M Better/ Operating Profit /(Loss) FY19/20 FY18/19 (Worse) FY19/20 FY18/19 (Worse) ($’m) ($’m) (%) ($’m) ($’m) (%) SIA (Parent Airline 412.6 368.7 +11.9 877.6 786.9 +11.5 Company) 6.9 7.4 (6.8) (12.2) 4.6 n.m. Si
Slide 19: Composition of Change in SIA Operating Results Q3 FY19/20
Composition of Change in SIA (Parent Airline Company)’s Operating Results Q3 FY19/20 Operating profit improved on strong pax revenue growth $M 600 +224.9 -112.1 +39.7 -33.9 500 -31.9 Lower Higher -25.7 Lower net cargo flown fuel cost aircraft standing ECL on -24.5 revenue 412.6 charges NokScoot +7.4
Slide 20: SilkAir: Composition of Decrease in Operating Performance
SIA Group – Q3 FY19/20 SilkAir: Composition of Decrease in Operating Performance $M 10 8 7.4 -11.6 Mainly: +9.7 6.9 • Non-scheduled svcs (-3.7) -0.5 6 • Lower cargo revenue (-0.8) (-6.8%) 4 Lower Lower 2 other net fuel revenue cost 0 -2 +7.7 -6.3 -4 Largely: Lower • Lower leased aircraft charges (-7
Slide 21: Scoot: Composition of Increase in Operating Performance
SIA Group – Q3 FY19/20 Scoot: Composition of Increase in Operating Performance $M Higher pax flown 30 revenue +26.0 -11.2 25 Mainly: • Higher AMO (+9.4) • Higher handling charges (+3.9) Higher • Higher sales costs (+3.9) 20 net fuel • Higher LPO (+1.3) cost • Lower depreciation & leased -2.2 aircraf
Slide 22: Profit Attributable to Owners of the Parent Q3 & 9M FY19/20
Group Profit Attributable to Owners of the Parent Q3 & 9M FY19/20 Improvement in Q3 & 9M net profit $M 400 314.8 300 284.1 9M FY19/20 $520.4M 202.6 200 139.6 Year-on-Year 111.1 $40.3M 100 94.5 (+8.4%) 56.4 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY18/19 FY18/19 FY18/19 FY18/19 FY19/20 FY19/20 FY19/20 The copyright i
Slide 23: Profit Attributable to Owners of the Parent Q3 FY19/20
Group Profit Attributable to Owners of the Parent Q3 FY19/20 Higher group operating profit and improved results from JVs, partially offset by ECL on NokScoot and higher net finance charges $M 400 +17.0 -28.7 350 +60.9 -27.8 Higher +9.3 314.8 ECL on 300 284.1 share of Higher net NokScoot +30.7 profit
Slide 24: SIA Group Per Share Data
SIA Group Per Share Data 9M FY19/20 9M FY18/19 EBITDA per share ($) 2.04 1.49 Basic earnings per share (¢) 43.9 40.6 As at 31 Dec’19 As at 31 Mar’19 Net Asset Value per share ($) 10.25 11.22 The copyright in this material is owned by Singapore Airlines Ltd. This material may not be modified, reprodu
Slide 25: 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 8.44x 0.79x 0.50x 5.04x 0.50 5.0 0.00 0.0 As at 31 As at 31 9M 9M Mar'19 Dec'19 FY18/19 FY19/20 R1 Total debt: Borrowings + Lease Lia
Slide 26: 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.
Slide 27: Fleet Development
Group Fleet Development Operating Fleet As at 30 Sep’19 In Out As at 31 Dec ‘19 777-200 4 -1 3 777-200ER 4 4 777-300 5 5 777-300ER 27 27 A380-800 19 19 A330-300 12 -3 9 A350-900 41 +4 45 787-10 14 +1 15 747-400F 7 7 SIA Total 133 +5 -4 134 A319 2 2 A320 7 7 737-800 17 17 SilkAir Total 26 - - 26 787-
Slide 28: Fuel Hedging Position
Group Fuel Hedging Position As at 30 January 2020 Q4 FY19/20 Jet Fuel Brent Percentage hedged 79% - Average hedged price (USD/BBL) 76 FY20/21 Jet Fuel Brent Percentage hedged 51% 22% Average hedged price (USD/BBL) 74 58 FY21/22 – FY24/25 Jet Fuel Brent Percentage hedged up to 7% up to 52% Average he
Slide 29: Thank you
Thank you
Singapore Airlines — Q3 FY2019/20 Earnings Presentation on 6ix