Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — Q1 FY2019-20 Earnings Presentation

20 slides from Singapore Airlines's earnings presentation, Aug 1, 2019

  1. Slide 1: SIA Group Q1 FY2019-20 Results

    SIA Group Q1 FY2019-20 Results 1 August 2019 Slide 1

  2. Slide 2: SIA Group – Q1 FY19/20 Key Takeaways

    SIA Group – Q1 FY19/20 Key Takeaways  Passenger traffic growth drove improvements in overall RASK and revenue – SIA Pax: Captured strong demand, outstripping growth in capacity to achieve record passenger load factor. RASK improved 2.4%. – MI: Performance significantly impacted by 737 MAX 8 groundi

  3. Slide 3: SIA Group Financial Results

    SIA Group Financial Results Q1 FY19/20 Q1 FY18/19 Better/ ($’M) ($’M) (Worse) (%) Total Revenue 4,102.2 3,844.5 6.7 Total Expenditure 3,902.2 3,651.4 (6.9) - Net Fuel Cost 1,172.7 1,079.4 (8.6) Fuel cost 1,229.8 1,211.6 (1.5) Fuel hedging gain (57.1) (132.2) (56.8) - Non-fuel expenditure 2,729.5 2,5

  4. Slide 4: Pax traffic growth across all airlines; record Q1 PLF for SIA

    Pax traffic growth across all airlines; record Q1 PLF for SIA Q1 Change (%) FY19/20 Revenue Passenger-KM (M) 26,628.3 9.0 SIA (Passenger) Available Seat-KM (M) 32,002.7 7.4 Passenger Load Factor (%) 83.2 1.2 pts Revenue Passenger-KM (M) 2,302.1 2.4 SilkAir Available Seat-KM (M) 2,949.5 (1.6) Passeng

  5. Slide 5: Group revenue improvement led by strong pax flown revenue

    Group revenue improvement led by strong pax flown revenue Group Revenue $M 4,400 4,341.5 4,300 4,200 Q1 FY19/20 4,100 4,062.1 4,075.1 4,102.2 $4,102.2M 4,000 3,900 3,844.5 Year-on-Year 3,800 $257.7M (+6.7%) 3,700 3,600 3,500 Q1 Q2 Q3 Q4 Q1 FY18/19 FY19/20 Slide 5

  6. Slide 6: Strong pax traffic growth drove improvements in RASK and revenue

    Strong pax traffic growth drove improvements in RASK and revenue Pax Flown Revenue 3,331.6 Cargo and Mail (+270.5, +8.8%) 488.9 (-44.6, -8.4%) 81.2% 11.9% Engineering Services 127.2 (+17.9, +16.4%) Other Pax Revenue 83.7 Others (-7.9, -8.6%) 70.8 (+21.8, +44.5%) Flown Revenue RASK Yields Carriage/Lo

  7. Slide 7: Group expenditure increased on expansion

    Group expenditure increased on expansion Group Expenditure $M 4,000 3,953.9 3,902.2 3,900 3,829.2 3,821.6 Q1 FY19/20 3,800 $3,902.2M 3,700 3,651.4 3,600 Year-on-Year $250.8M 3,500 (+6.9%) 3,400 3,300 Q1 Q2 Q3 Q4 Q1 FY18/19 FY19/20 Slide 7

  8. Slide 8: Ex-fuel costs rose largely from expansion of operations

    Ex-fuel costs rose largely from expansion of operations AMO Costs Depreciation and Handling Charges 218.6 Leased Aircraft 334.1 (-36.1, -14.2%) Charges (+5.2, +1.6%) 526.4 (+33.9, +6.9%) LPO* Charges 5.6% 13.5% 233.2 8.6% Staff Cost 81.2% 11.9% (+17.3, +8.0%) 6.0% 19.2% 747.9 4.9% (+90.3, +13.7%) Pa

  9. Slide 9: Composition of Increase in Net Fuel Cost

    Higher group fuel cost led by increase in volume uplifted on capacity expansion and stronger USD; benefited from fuel hedging gains $M Composition of Increase in Net Fuel Cost 1,200 +32.9 1,172.7 1,150 +69.7 Stronger +93.3 USD (+8.6%) 1,100 -84.4 against 1,079.4 +75.1 SGD 1,050 Higher uplift 1,000 L

  10. Slide 10: Group operating profit improved against last year

    Group operating profit improved against last year Group Operating Profit $M 500 400 387.6 Q1 FY19/20 $200.0M 300 253.5 232.9 200 193.1 200.0 Year-on-Year $6.9M (+3.6%) 100 0 Q1 Q2 Q3 Q4 Q1 FY18/19 FY19/20 Slide 10

  11. Slide 11: Strong revenue growth outpaced expenditure increase

    Strong revenue growth outpaced expenditure increase $M Composition of Change in Group Operating Profit 500 Largely: +270.5 -44.6 • Staff costs (+90.3) +17.9 -93.3 • Depreciation & leased aircraft 450 charges (+33.9) • Landing, parking & overflying 400 Lower Higher (+17.3) cargo engineering flown rev

  12. Slide 12: Operating results for main companies in the Group

    Operating results for main companies in the Group Better/ Better/ Q1 FY19/20 Q1 FY18/19 (Worse) (Worse) ($’M) ($’M) ($’M) (%) SIA 232.0 180.8 51.2 28.3 (Parent Airline Company) SilkAir (15.9) 0.2 (16.1) n.m. Scoot (37.5) 1.1 (38.6) n.m. SIAEC Group 17.7 10.2 7.5 73.5 Slide 12

  13. Slide 13: Parent Airline Company's operating profit improved on strong revenue growth

    Parent Airline Company’s operating profit improved on strong revenue growth Composition of Change in Parent Airline Company’s Operating Profit $M 500 +258.4 -44.6 Other major items include: 450 • Higher ASC (-33.3) • Higher sales costs (-18.7) 400 -81.0 • Higher LPO (-16.1) Lower • Higher passenger

  14. Slide 14: SilkAir significantly impacted by MAX 8 grounding

    SilkAir significantly impacted by MAX 8 grounding Composition of Change in SilkAir’s Operating Profit $M 5 0.2 -9.8 0 (5) (16.1) (10) (n.m.) Lower pax -1.8 (15) flown revenue Higher -4.5 -15.9 (20) and other revenue net fuel Higher (25) cost ex-fuel costs (30) (35) (40) (45) (50) Q1 FY18/19 Revenue

  15. Slide 15: Scoot's capacity growth matched by pax traffic improvement

    Scoot’s capacity growth matched by pax traffic improvement Composition of Change in Scoot’s Operating Profit $M 20 +14.0 -10.5 Mainly: • Higher passenger costs (+3.3) 10 • Higher handling costs (+2.7) -10.5 • Higher crew allowance (+2.7) 1.1 • Higher LPO (+2.2) 0 Higher Lower -11.7 pax flown other (

  16. Slide 16: Lower Group net profit on share of assoc losses and higher net finance charges

    Lower Group net profit on share of assoc losses and higher net finance charges Group Profit Attributable to $M Owners of the Parent 300 284.1 250 Q1 FY19/20 202.6 $111.1M 200 150 139.6 Year-on-Year 111.1 100 $28.5M (-20.4%) 56.4 50 0 Q1 Q2 Q3 Q4 Q1 FY18/19 FY19/20 Slide 16

  17. Slide 17: Lower Group net profit on share of assoc losses and higher net finance charges

    Lower Group net profit on share of assoc losses and higher net finance charges $M Composition of Change in Group Net Profit 150 +6.9 139.6 140 Higher operating 130 profit +8.6 -28.5 (-20.4%) 120 -31.2 +5.2 111.1 110 Higher Share of share +7.5 losses of of assoc vs profits 100 profits of JVs last yea

  18. Slide 18: Group fuel hedging position

    Group fuel hedging position Q2 FY19/20 Jet Fuel Brent Percentage hedged (%) 79 - Average hedged price (USD/bbl) 75 - 9M FY19/20 Jet Fuel Brent Percentage hedged (%) 70 5 Average hedged price (USD/bbl) 76 52 FY20/21 to FY24/25 Jet Fuel Brent Percentage hedged (%) Up to 23% Up to 49% Average hedged pr

  19. Slide 19: Group fleet movement

    Group fleet movement Operating Fleet As at 31 Mar’19 In Out As at 30 Jun’19 777-200 7 -2 5 777-200ER 5 5 777-300 5 5 Singapore Airlines 777-300ER 27 27 A380-800 19 19 A330-300 17 -1 16 A350-900 XWB 32 +4 36 787-10 9 +3 12 747-400F 7 7 Total 128 +7 -3 132 A319 2 2 SilkAir A320 8 8 737-800 17 17 Total

  20. Slide 20: Thank You

    THANK YOU SIA GROUP Q1 FY2019-20 Results Slide 20 1 August 2019

Singapore Airlines — Q1 FY2019-20 Earnings Presentation on 6ix