Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — H1 FY2012/13 Earnings Presentation

25 slides from Singapore Airlines's earnings presentation, Nov 5, 2012

  1. Slide 1: Singapore Airlines Group Analyst/Media Briefing Half Year FY2012-13 Results

    Singapore Airlines Group Analyst/Media Briefing HALF YEAR FY2012-13 RESULTS 5 NOVEMBER 2012 THE PARENT AIRLINE 1H FY2012/13 RESULTS

  2. Slide 2: Parent Airline Company Results – 2Q & 1H FY12/13

    THE PARENT AIRLINE COMPANY RESULTS – 2Q & 1H FY12/13 Better/ Better/ 2Q/12 (Worse) 1H/12 (Worse) $million $million $million $million Total Revenue 3,141 108 6,245 310 Total Expenditure 3,057 (113) 6,076 (194) - Fuel Cost 1,241 (72) 2,484 (100) - Fuel Hedging (Gain)/Loss (14) 24 11 (11) - Ex-fuel Cos

  3. Slide 3: Parent Airline Operating Performance – 2Q & 1H FY12/13

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – 2Q & 1H FY12/13 % % 2Q/12 Change 1H/12 Change Passenger Yield 11.4 -2.6 11.4 -3.4 (¢/pkm) Passenger Unit Cost 9.1 -1.1 9.1 -1.1 (¢/ask) Passenger Breakeven 79.8 +1.2 pts 79.8 +1.8 pts Load Factor (%) Slide 5 THE PARENT AIRLINE COMPANY OPERATING PERF

  4. Slide 4: Parent Airline Operating Performance – Load Factors

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor Breakeven Load Factor (%) 88 86.0 84 79.8 80 79.4 77.9 78.0 79.6 76 75.6 77.5 75.4 72 72.2 68 0 1H 08/09 1H 09/10 1H 10/11 1H 11/12 1H 12/13 Slide 7 THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor Breakeven

  5. Slide 5: Monthly Passenger Yield and Fuel Price Trend

    THE PARENT AIRLINE COMPANY MONTHLY PASSENGER YIELD 2009-10 2011-12 2012-13 ¢/pkm 14 13 11.9 12 11.6 11.4 11.6 11 11.2 10 10.4 10.0 9.7 9 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 hedging ($ million) Fuel

  6. Slide 6: Cost Composition and Top 5 Expenditure – 1H FY12/13

    THE PARENT AIRLINE COMPANY COST COMPOSITION – 1H FY12/13 Others 19.7% Fuel 41.1% Passenger Costs +0.6% pt 5.4% +0.5% pt Handling Charges 7.1% +0.2% pt Staff Costs 13.2% +0.6% +0.6 pt Aircraft Depreciation & Rentals 13.5% Slide 11 -1.9% pts THE PARENT AIRLINE COMPANY TOP 5 EXPENDITURE – 1H FY12/13 2,

  7. Slide 7: Fuel Expenditure; The Group 1H FY2012/13 Results

    THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – 1H FY12/13 ($ million) 2,600 2,495 +128 +11 (+111) 2,500 2,400 2,384 +61 2,300 -89 2,200 Lower Stronger Higher Hedging weighted US Dollar volume loss vs average uplifted 2,100 hedging fuel price gain 0 1H/11 Price Exchange Volume Hedging 1H/12 Slide 13 T

  8. Slide 8: Group Revenue and Expenditure – 1H FY2012/13

    GROUP REVENUE – 1H FY2012/13 2011/12 2012/13 ($ million) Half Year 4,000 Revenue 3,777 3,794 $7,571M 3,750 3,699 +95 +199 3,578 +2.6% +5.6% Year-on-Year 3,500 $294M +4.0% 3,250 3,000 2,750 0 Q1 Q2 Slide 15 GROUP EXPENDITURE – 1H FY2012/13 2011/12 2012/13 ($ million) Half Year 4,000 Expenditure $7,42

  9. Slide 9: Group Operating Profit and Contribution by Company

    GROUP OPERATING PROFIT – 1H FY2012/13 2011/12 2012/13 ($ million) Half Year 150 Op Profit $142M 125 123 -53 Year-on-Year 100 $8M -43.1% 72 +6.0% 75 70 50 +61 (n.m.) 25 11 0 Q1 Q2 Slide 17 CONTRIBUTION TO GROUP OPERATING PROFIT – 1H FY12/13 ($ million) 1H/12 1H/11 Change % Change Singapore Airlines 1

  10. Slide 10: Group Net Profit – 1H FY2012/13

    GROUP NET PROFIT – 1H FY2012/13 2011/12 2012/13 ($ million) Half Year 200 194 Net Profit $168M 150 -104 Year-on-Year -53.6% $71M -29.7% 100 90 78 +33 50 45 +73.3% 0 Q1 Q2 Slide 19 GROUP NET PROFIT – 1H FY2012/13 Loss on ($ million) disposal of 300 Higher aircraft vs operating gain last profit year 2

  11. Slide 11: Group Results 1H FY12/13; Business Outlook for 2nd Half

    GROUP RESULTS – 1H FY12/13 1H/12 1H/11 EBITDAR Per Share ($) 1.11 1.23 Earnings Per Share (¢) 14.3 20.0 Interim Dividend Per 6.0 10.0 Share (¢) At 30 Sep 12 At 31 Mar 12 Net Asset Value Per 11.04 10.96 Share ($) Slide 21 BUSINESS OUTLOOK FOR THE 2nd HALF YEAR

  12. Slide 12: Outlook and Fleet Development

    OUTLOOK  High and volatile fuel price  Weaker global economy Slide 23 FLEET DEVELOPMENT SIA SLK SCOOT Operating Fleet at 30 September 12 101 22 4 IN: Delivery of A333 + 1 - - Operating Fleet at 31 March 13 102 22 4 Slide 24

  13. Slide 13: SIA and SilkAir Fleet Development

    SIA FLEET DEVELOPMENT SIA Operating Fleet at 31 March 13 102 New deliveries from April 2013: Delivery of A330 (2013 onwards) + 14 Delivery of B773-ER (2013 onwards ) +8 Delivery of A350 (2015 onwards) + 20 Delivery of A380 (2017 onwards ) +5 Delivery of A350 (2017 onwards) + 20 Slide 25 SILKAIR FLEE

  14. Slide 14: Scoot Fleet Development and Group Capital Expenditure

    SCOOT FLEET DEVELOPMENT SCOOT Operating Fleet at 31 March 13 4 New deliveries from April 2013: Delivery of B787 (2014 onwards) + 20 Slide 27 GROUP CAPITAL EXPENDITURE FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Aircraft 1,250 1,850 2,950 3,150 3,950 Other Assets 250 250 200 200 200 Total 1,500 2,100 3,1

  15. Slide 15: Group Fuel Hedging Position; Meeting the Challenges

    GROUP FUEL HEDGING POSITION  Percentage hedged for period Oct 12 to Mar 13 43 (%)  Avg hedged price for period Oct 12 to Mar 13 123 (USD/BBL - Jet Fuel) Slide 29 MEETING THE CHALLENGES

  16. Slide 16: Group Portfolio

    Group Portfolio Premium Full Service SilkAir (MI) SIA (SQ) Regional Regional, Medium and Long haul No Frills Slide 31 Group Portfolio Premium Full Service SilkAir (MI) SIA (SQ) Regional Regional, Medium and Long haul Integrated planning and operations Outcome  Joint fleet and route planning,  Cros

  17. Slide 17: Group Portfolio – LCC Partners

    Group Portfolio Premium Full Service The LCCs stimulate new traffic and tap new market segments Regional LCC Partner Scoot (TZ) No E.g. Tiger (TR) Medium and Long haul Frills Slide 33 Group Portfolio Premium Full Service Consistent no frills offering  Interline relationship  Potential codeshare? R

  18. Slide 18: Group Portfolio – Distinct Positioning

    Group Portfolio Premium Full SilkAir (MI) SIA (SQ) Service Regional Regional, Medium and Long haul  Distinct positioning at each end of market spectrum  Lower risk of cannibalization Regional LCC Partner Scoot (TZ) No E.g. Tiger (TR) Medium and Long haul Frills Slide 35 Group Portfolio  Our LCCs

  19. Slide 19: Group Portfolio; Network & Connectivity

    Group Portfolio  Our LCCs take market share from other players in product continuum Premium Full SilkAir (MI) SIA (SQ) Service Regional Regional, Medium and Long haul Other Full Traffic through Service Carriers other hubs Regional LCC Scoot (TZ) Other LCCs Partner Medium and Other LCCs No E.g. Tige

  20. Slide 20: Network & Connectivity

    Network & Connectivity FY 2010 China India Africa 8 points 10 points 3 points 73x weekly 77x weekly 12x weekly Indonesia Australia 9 points SIA Group 5 points 118x weekly 92x weekly Slide 39 Network & Connectivity FY 2012 China India Africa 11 points 13 points 3 points 96x weekly 116x weekly 14x wee

  21. Slide 21: Network & Connectivity – Airline Partnerships

    Network & Connectivity  Airline partnerships – Fill gaps in network – Compete against other partnerships – STAR Alliance starting point – Additional partnerships beyond STAR Slide 41 Network & Connectivity New and deepened partnerships since 2011 Slide 42

  22. Slide 22: Product Leadership and Service Excellence

    Product Leadership and Service Excellence We will remain at the forefront of airline product innovation and service excellence Slide 43 Product Leadership and Service Excellence Highlights of New Initiatives Aircraft Cabin and Seats  BMW DesignworksUSA – First Class  James Park Associates – Busine

  23. Slide 23: Product Leadership – Inflight Entertainment and Lounges

    Product Leadership and Service Excellence Highlights of New Initiatives Inflight Entertainment System  USD 400m investment and launch customer for Panasonic Avionics’ next-generation system  In-flight connectivity on long haul aircraft (progressively from April 2012) Slide 45 Product Leadership an

  24. Slide 24: Customer Experience Management

    Product Leadership and Service Excellence Highlights of New Service Initiative Customer Experience Management (CEM)  Vision is to develop a 3600 view of our customers  Deliver proactive and personalized services at more touch points  Take SIA’s service leadership to a higher level Slide 47 Produc

  25. Slide 25: Thank You

    Thank You

Singapore Airlines — H1 FY2012/13 Earnings Presentation on 6ix