Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — FY20/21 Earnings Presentation
40 slides from Singapore Airlines's earnings presentation, May 20, 2021
Slide 1: SIA Group Analysts/Media Briefing FY20/21 Results
SIA Group Analysts/Media Briefing FY20/21 Results 20 May 2021 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Lt d. Singapore Airlines Ltd has not independently verified the information from external sources. This material ma
Slide 2: Presentation by Senior Vice President Finance Mr. Stephen Barnes
PRESENTATION BY: Senior Vice President Finance Mr. Stephen Barnes The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Lt d. Singapore Airlines Ltd has not independently verified the information from external sources. This materia
Slide 3: Key takeaways – FY20/21 results
Group Financial Results Key takeaways – FY20/21 results ▪ Singapore Airlines posts $4.3 billion net loss after the toughest year in its history. ▪ Passenger traffic down 97.9% due to global restrictions on international travel. ▪ Strong cargo revenues cushioned the plunge in passenger contributions.
Slide 4: Group Financial Results
Group Financial Results 2H 2H Better/ Better/ FY20/21 FY19/20 FY20/21 FY19/20 (Worse) (Worse) ($’M) ($’M) ($’M) ($’M) (%) (%) Total Revenue 2,181.5 7,651.4 (71.5) 3,815.9 15,975.9 (76.1) Total Expenditure 2,831.1 8,005.4 64.6 6,328.4 15,916.8 60.2 -- Net fuel cost 639.5 2,287.6 72.0 1,015.5 4,636.5
Slide 5: Revenue FY20/21
Group Revenue FY20/21 Plunge in revenue as demand for international air travel remained depressed Group Revenue ($’M) 4,470.6 4,102.2 4,222.3 FY20/21 $3,815.9M 3,180.8 Year-on-Year $12,160.0M 1,066.7 1,114.8 (-76.1%) 850.6 783.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY19/20 FY19/20 FY19/20 FY19/20 FY20/21 FY20/21
Slide 6: Revenue FY20/21
Group Revenue FY20/21 Weakness in passenger business partially offset by strong cargo performance Passenger Business: • Group revenue declined -76.1% y-o-y as passenger carriage plummeted 97.9% amid unprecedented closure of global borders. Passenger flown revenue declined by 94.7% y-o-y. • 13.1% How
Slide 7: Expenditure FY20/21
Group Expenditure FY20/21 Group expenditure declined on capacity cuts, cost savings initiatives and government support schemes Group Expenditure ($’M) 4500 3,902.2 4,009.2 4,022.1 3,983.3 4000 FY20/21 3500 $6,328.4M 3000 2500 1,887.4 2000 1,609.9 Year-on-Year 1,397.5 1,433.6 1500 $9,588.4M 1000 (-60
Slide 8: Expenditure FY20/21 - Adjusted
Group Expenditure FY20/21 - Adjusted Group expenditure declined on capacity cuts, cost savings initiatives and government support schemes Group Expenditure Adjusted ($’M) Group Expenditure ($’M) FY20/21 4500 3,902.2 4,009.2 4,022.1 Fuel hedging 4000 ineffectiveness/ FY20/21 3,273.5 FV revaluation 35
Slide 9: Expenditure FY20/21
Group Expenditure FY20/21 Lower net fuel cost and non-fuel costs for full year Group expenditure declined -60.2% y-o-y: ▪ Significant reduction in non-fuel expenditure (-51.8%) on the back of capacity cuts, cost-saving initiatives, staff-related measures and government 13.1% support schemes. 69.8% 1
Slide 10: Expenditure FY20/21 – Fuel Cost
Group Expenditure FY20/21 – Fuel Cost Lower fuel costs mainly due to capacity cuts and lower fuel prices partially negated by higher fuel hedging loss Group Fuel Cost Analysis ($’M) 4,636.5 Lower uplift 69.8% -$3,621.0M (-78.1%) Lower weighted average fuel Weakening price Higher fuel of USD hedging
Slide 11: Operating Performance FY20/21
Group Operating Performance FY20/21 Lower operating losses in 2H compared to 1H Group Operating Performance ($’M) 600 448.5 69.8% 400 200.0 213.1 FY20/21 200 -$2,512.5M 0 -200 Year-on-Year -400 -330.8 -318.8 $2,571.6M -600 (n.m.) -800 -802.5 -826.1 -1000 -1,036.8 -1200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY19/2
Slide 12: Operating Performance FY20/21 - Adjusted
Group Operating Performance FY20/21 - Adjusted Lower operating losses in 2H compared to 1H Adjusted Group Operating Group Operating Performance Performance ($’M) ($’M) 600 FY20/21 Fuel hedging 448.5 ineffectiveness/FV revaluation 400 213.1 $214.0M FY20/21 200.0 200 (-$495.8M) -$2,298.5M 0 -200 -92.7
Slide 13: Operating Loss FY20/21
Group Operating Loss FY20/21 Deterioration in operating performance due to plunge in passenger flown revenue Group Operating Performance ($’M) Lower pax flown 59.1 revenue 13.1% 69.8% -$2,571.6M 17.1% +2,454.3 (n.m.) -2,512.5 +882.6 Lower net +1,403.1 Largely: fuel cost ▪ lower sales costs (+825.0)
Slide 14: Operating Results for the Main Companies of the Group
Operating Results for the Main Companies of the Group All three airlines recorded lower operating losses in 2H; while SIAEC turned profitable in 2H vs 1H 2H 2H Better/ Better/ FY20/21 FY19/20 FY20/21 FY19/20 (Worse) (Worse) ($’M) ($’M) ($’M) ($’M) (%) (%) SIA (441.6) (170.8) (158.5) (1,701.7) 294.2
Slide 15: Net Loss FY20/21
Group Net Loss FY20/21 Lower net losses in 2H compared to 1H Group Net Performance ($’M) 314.8 111.1 94.5 13.1% 69.8% 17.1% FY20/21 -141.8 -$4,270.7M -732.4 -661.9 -1,123.3 Year-on-Year $4,058.7M (n.m.) -2,343.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY19/20 FY19/20 FY19/20 FY19/20 FY20/21 FY20/21 FY20/21 FY20/21
Slide 16: Net Loss FY20/21
Group Net Loss FY20/21 Net loss driven by weaker op performance and non-cash impairment charges, partially offset by increase in tax credit Group Net Performance ($’M) -212.0 Largely: -$4,058.7M Impairment of Lower share of profits from (n.m.) 45 surplus JVs (-32.4), aircraft Loss on divestment of V
Slide 17: Financial Position
Group Financial Position ($’M) As at 31 March 2021 As at 31 March 2020 Equity attributable to owners of the company 15,905.9 9,314.1 Total Assets 37,581.3 33,712.8 Total Debt 14,336.9 11,784.5 Total Cash and Bank Balances 7,783.0 2,685.3 Total Liabilities 21,303.2 23,980.1 Debt: Equity ratio (times)
Slide 18: Fleet Development
Group Fleet Development Net increase of 19 aircraft by end of FY21/22 Operating Fleet As at 31 March 2021 In Out As at 31 March 2022 SIA 777-300ER 23 23 A380-800 12 12 A330-300 3 -3 0 A350-900 52 +6 58 787-10 15 +5 20 737-800 NG 8 +1 9 747-400F 7 7 Total 120 +12 -3 129 SilkAir 737-800 NG 1 -1 0 Tota
Slide 19: Presentation by Chief Executive Officer Mr. Goh Choon Phong
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 Lt d. Singapore Airlines Ltd has not independently verified the information from external sources. This material may
Slide 20: Strong Fundamentals, Response to Covid-19, Lead the New World
1 Strong Fundamentals 2 Response to Covid-19 3 Lead the New World Slide 20 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Lt d. Singapore Airlines Ltd has not independently verified the information from external sources. Thi
Slide 21: Strong Fundamentals
Strong Fundamentals The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Lt d. Singapore Airlines Ltd has not independently verified the information from external sources. This material may not be modified, reproduced, distributed
Slide 22: Strong Fundamentals
Strong Fundamentals Investing to grow network, product, service and digital leadership pre-Covid Extensive global network Modern fleet with premium Delivering a world-class service bolstered by partnerships products Americas 4 out of 6 Points served Non-Stop Europe 17 Points North Asia 38 Points, in
Slide 23: Strong Fundamentals
Strong Fundamentals Developing new air and non-air engines of growth Streamline the Group portfolio to build synergies Grow new businesses to diversify revenue streams and increase customer mindshare FSC integration LCC integration announced in 2018 completed in 2017 Strategic investments in high-gr
Slide 24: Record-highs achieved in 3Q FY19/20
Strong Fundamentals Successful Transformation programme has placed us in good stead to handle Covid-19 Record-highs achieved in 3Q FY19/20 Available Passenger Passenger Seat-KM Load Factor Uplift Revenue (ASK) 45,506 million 85.6%* 10.1 million S$4,470.6 million * Highest PLF record achieved in prev
Slide 25: Response to Covid-19
Response to Covid-19 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Lt d. Singapore Airlines Ltd has not independently verified the information from external sources. This material may not be modified, reproduced, distribute
Slide 26: Fortifying our balance sheet to recover from a position of strength
Response to Covid-19 Fortifying our balance sheet to recover from a position of strength S$8.8B From shareholders, through Rights Issue Additional liquidity S$2.1B Aircraft secured financing raised since S$2.0B Sale-and-leaseback of 11 aircraft 1 Apr 2020 Total additional S$2.0B liquidity raised S$1
Slide 27: Measures to manage expenditure remain firmly in place
Response to Covid-19 Measures to manage expenditure remain firmly in place Agreements reached with Airbus and Boeing Various staff measures implemented Aircraft Family Revised Order Book A320 43 ~20% of positions reduced in FY20/21 A350 12 Paycuts instituted and remain 737-8 31 787 20 777-9 31 Expen
Slide 28: Delivering a safe and seamless customer journey
Response to Covid-19 Delivering a safe and seamless customer journey Pre-flight Check-In/Lounge/Boarding Inflight Arrival/Post-flight COVID-19 Info Centre Health assessment for passengers Care Kit for pax Electronic Health • Comms & health safety videos Declaration/ temperature • Enhanced flight cre
Slide 29: Prioritising health and safety by leveraging technology
Response to Covid-19 Prioritising health and safety by leveraging technology and service excellence SIA & Scoot awarded highest “Diamond” rating in global health and safety audit by APEX and SimpliFlying Two pilots successfully completed For frontline staff to digitally verify SGHealthCerts to preve
Slide 30: Rebuilding our passenger network in a safe and calibrated manner
Response to Covid-19 Rebuilding our passenger network in a safe and calibrated manner Keeping Our Hub Network Open Crafting New and Safe Models of Travel SIA Group Passenger Capacity; % vs. pre-Covid in Jan’20 With Authorities Jul 2021 Brunei Japan* 32% of pre-Covid capacity Reciprocal China Korea*
Slide 31: Aggressively pursuing opportunities to tap on strong cargo demand
Response to Covid-19 Aggressively pursuing opportunities to tap on strong cargo demand Operated cargo-only passenger flights Removed aircraft seats Launched new products to capture to supplement fall in bellyhold capacity to load cargo in cabin new verticals 1st airline in Southeast Asia to obtain I
Slide 32: Playing our part in the global effort against Covid-19
Response to Covid-19 Playing our part in the global effort against Covid-19 Transporting Proud partner of 1st vaccine vaccines and UNICEF Airfreight shipment essential Humanitarian supplies to Initiative & World to Asia other countries Food Programme Flying to bring loved ones home Engaging communit
Slide 33: Harnessing the Group portfolio and multi-hub airlines
Response to Covid-19 Harnessing the Group portfolio and multi-hub airlines SilkAir is in its final stages of integration into Strong foundation allows Vistara to be Singapore Airlines resilient and capitalise on opportunities Full Service Domestic operations 70% 65% Pre-Covid Passenger load resumed
Slide 34: Growing new businesses to diversify revenue streams
Response to Covid-19 Growing new businesses to diversify revenue streams and increase customer mindshare Expanding existing new businesses Building synergies within the ecosystem 90% YoY non-air KrisFlyer transactions ▪ Continued to grow KrisFlyer membership base in FY20/21 despite 100% YoY KrisFlye
Slide 35: Continuing our sustainability journey
Response to Covid-19 Continuing our sustainability journey Modern and fuel-efficient fleet Exploring Sustainable Aviation Fuel Collaborating with (SAF) Adoption SIN-ecosystem to develop: • World’s first green package flights • CORSIA eligible carbon credit projects • Uplift of biofuel ex-Sweden • A
Slide 36: Investing in our people and strengthening digital capabilities
Response to Covid-19 Investing in our people and strengthening digital capabilities Uplifting for the New World Demo Days Cultivating a Encouraging ground-up digital ▪ UPLIFT is a 2-year upskilling plan to equip ground staff worldwide with ideas from staff Digital Culture key Change Management and D
Slide 37: Lead the New World
Lead the New World Slide 37 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Lt d. Singapore Airlines Ltd has not independently verified the information from external sources. This material may not be modified, reproduced, dis
Slide 38: We have made progress in our new Transformation chapter
Lead the New World We have made progress in our new Transformation chapter Customer Experience Financial Sustainability Staff Productivity & Upskilling 33% >250 initiatives >400,000 staff hrs >1,000 ideas improvement in to achieve a competitive cost saved from business generated by staff responsiv
Slide 39: Lead the New World
Lead the New World Our robust fundamentals and agile pandemic response will put us on track to Lead the New World World Class Leader Financial Sustainability Dynamic and Resilient Team Pre-Covid foundations We continue have put to strengthen us infoundations these good stead during to handle the cri
Slide 40: Thank You
Thank You The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Lt d. Singapore Airlines Ltd has not independently verified the information from external sources. This material may not be modified, reproduced, distributed, republis