Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — FY2009/10 Earnings Presentation

31 slides from Singapore Airlines's earnings presentation, May 24, 2010

  1. Slide 1: Singapore Airlines Group Analyst / Media Briefing FY2009/10 Results

    SINGAPORE AIRLINES GROUP ANALYST / MEDIA BRIEFING FY2009/10 RESULTS 24 MAY 2010

  2. Slide 2: The Parent Airline FY2009/10 Results

    THE PARENT AIRLINE FY2009/10 RESULTS

  3. Slide 3: Parent Airline Company Results – FY2009/10

    THE PARENT AIRLINE COMPANY RESULTS – FY2009/10 ($ million) 4Q/09 % Change 2009/10 % Change Total Revenue 2,685 + 0.1 10,145 - 22.3 Total Expenditure 2,526 - 5.4 10,184 - 16.7 - Fuel Cost 834 + 28.6 3,077 - 39.0 - Fuel Hedging Loss 16 - 96.4 460 + 50.2 - Ex-fuel Cost 1,676 + 6.8 6,647 - 3.3 Operating

  4. Slide 4: Operating Performance – FY2009/10

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2009/10 4Q/09 % Change 2009/10 % Change Available Seat-KM 26,094 - 4.9 105,674 - 10.3 (million) Revenue Pax-KM 20,867 + 6.8 82,883 - 8.0 (million) Passenger Load 80.0 + 8.8 pts 78.4 + 1.9 pts Factor (%) Slide 4

  5. Slide 5: Operating Performance – FY2009/10 (Yield and Unit Cost)

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2009/10 4Q/09 % Change 2009/10 % Change Passenger Yield 11.1 - 5.9 10.4 - 16.8 (¢/pkm) Passenger Unit Cost 8.6 - 5.5 8.6 - 6.5 (¢/ask) Passenger Breakeven 77.5 + 0.4 pt 82.7 + 9.1 pts Load Factor (%) Slide 5

  6. Slide 6: Operating Performance – Load Factor Spread

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2009/10 4Q/09 % Change 2009/10 % Change Passenger Load 80.0 + 8.8 pts 78.4 + 1.9 pts Factor (%) Passenger Breakeven 77.5 + 0.4 pt 82.7 + 9.1 pts Load Factor (%) Passenger Load 2.5 + 8.4 pts (4.3) - 7.2 pts Factor Spread (% pts) Slide 6

  7. Slide 7: Passenger-KM

    THE PARENT AIRLINE COMPANY PASSENGER-KM Passenger-KM (million) 25,000 24,000 23,000 23,191 22,108 22,000 21,253 20,867 21,000 20,000 19,000 18,000 18,655 1Q/PY 2Q/PY 3Q/PY 4Q/PY 1Q/CY 2Q/CY 3Q/CY 4Q/CY Slide 7

  8. Slide 8: Pax Load Factor & Breakeven Load Factor

    THE PARENT AIRLINE COMPANY PAX LOAD FACTOR & BREAKEVEN LOAD FACTOR (%) Passenger Load Factor Breakeven Load Factor 92 88.8 88 84.3 84 82.4 79.6 80.0 80 76.7 76 79.0 77.5 72 71.6 68 70.2 0 1Q/PY 2Q/PY 3Q/PY 4Q/PY 1Q/CY 2Q/CY 3Q/CY 4Q/CY Slide 8

  9. Slide 9: Passenger Yield

    THE PARENT AIRLINE COMPANY PASSENGER YIELD Passenger Yield (¢/pkm) pkm 13 12 12.4 11.1 11 10 10.5 10.2 9.8 9 8 1Q/PY 2Q/PY 3Q/PY 4Q/PY 1Q/CY 2Q/CY 3Q/CY 4Q/CY Slide 9

  10. Slide 10: Cost Composition – FY2009/10

    THE PARENT AIRLINE COMPANY COST COMPOSITION – FY2009/10 Others 21.1% Fuel (+2.9% pts) 34.7% (-9.1% pts) Passenger Costs 5.3% (+0.6% pt) Airport Handling 7.7% (+0.9% pt) Aircraft Staff Depreciation & Rentals 13.5% (+1.0% pt) 17.7% (+3.7% pts) Slide 10

  11. Slide 11: Top Expenditure – FY2009/10

    THE PARENT AIRLINE COMPANY TOP 5 EXPENDITURE – FY2009/10 3,537 (-33.9%) Fuel Aircraft Depr. & 1,798 (+5.3%) Lease Rentals 1,374 (-9.9%) Staff 2009/10 2008/09 Airport Handling 788 (-4.8%) 542 (-6.5%) Passenger Costs ($ million) 0 1,000 2,000 3,000 4,000 5,000 6,000 Slide 11

  12. Slide 12: Fuel Expenditure

    THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – FY2009/10 ($ million) 6,000 5,349 5,000 -1,812 4,000 +154 +19 -1,507 3,000 -478 3,537 2,000 Lower Lower Stronger Higher weighted volume US Dollar hedging 1,000 average uplifted losses fuel price 0 08/09 Price Volume Exchange Hedging 09/10 Slide 12

  13. Slide 13: The Group FY2009/10 Results

    THE GROUP FY2009/10 RESULTS

  14. Slide 14: Group Revenue – FY2009/10

    GROUP REVENUE – FY2009/10 ($ million) ($ million) 2008/09 2009/10 4,500 4,250 4,000 3,750 3,500 3,418 3,336 3,250 3,082 3,000 2,871 2,750 0 Q1 Q2 Q3 Q4 Slide 14

  15. Slide 15: Group Expenditure – FY2009/10

    GROUP EXPENDITURE – FY2009/10 ($ million) ($ million) 2008/09 2009/10 4,500 4,250 4,000 3,750 3,500 3,190 3,264 3,250 3,095 3,095 3,000 2,750 0 Q1 Q2 Q3 Q4 Slide 15

  16. Slide 16: Group Operating Profit/Loss – FY2009/10

    GROUP OPERATING PROFIT/LOSS – FY2009/10 ($ million) ($ million) 2008/09 2009/10 500 400 323 300 241 200 100 0 -100 -200 -182 -300 -400 -319 Q1 Q2 Q3 Q4 Slide 16

  17. Slide 17: Group Net Profit/Loss – FY2009/10

    GROUP NET PROFIT/LOSS – FY2009/10 ($ million) ($ million) 2008/09 2009/10 500 404 400 300 278 200 100 0 -100 -200 -159 -300 -307 -400 Q1 Q2 Q3 Q4 Slide 17

  18. Slide 18: Group Revenue – FY2009/10 (Actual)

    GROUP REVENUE – FY2009/10 ($ million) ($ million) 17,000 15,973 15,996 16,000 15,000 14,494 14,000 13,341 13,000 12,707 12,000 11,000 0 05/06 06/07 07/08 08/09 09/10 (Actual) Slide 18

  19. Slide 19: Group Revenue – FY2009/10 (Proforma)

    GROUP REVENUE – FY2009/10 ($ million) ($ million) 17,000 15,973 15,726 16,000 15,000 14,494 14,000 13,341 13,000 12,707 12,000 11,000 0 05/06 06/07 07/08 08/09 09/10 (Proforma) Slide 19

  20. Slide 20: Group Expenditure – FY2009/10 (Actual)

    GROUP EXPENDITURE – FY2009/10 ($ million) ($ million) 17,000 16,000 15,093 15,000 14,000 13,848 13,180 13,000 12,644 12,128 12,000 11,000 0 05/06 06/07 07/08 08/09 09/10 (Actual) Slide 20

  21. Slide 21: Group Expenditure – FY2009/10 (Proforma)

    GROUP EXPENDITURE – FY2009/10 ($ million) ($ million) 17,000 16,000 14,930 15,000 14,000 13,848 13,180 13,000 12,644 12,128 12,000 11,000 0 05/06 06/07 07/08 08/09 09/10 (Proforma) Slide 21

  22. Slide 22: Group Operating Profit – FY2009/10 (Actual)

    GROUP OPERATING PROFIT – FY2009/10 ($ million) ($ million) 2,500 2,125 2,000 1,500 1,213 1,314 1,000 904 500 63 0 05/06 06/07 07/08 08/09 09/10 (Actual) Slide 22

  23. Slide 23: Group Operating Profit – FY2009/10 (Proforma)

    GROUP OPERATING PROFIT – FY2009/10 ($ million) ($ million) 2,500 2,125 2,000 1,500 1,213 1,314 1,000 796 500 63 0 05/06 06/07 07/08 08/09 09/10 (Proforma) Slide 23

  24. Slide 24: Contribution to Group Operating Profit – FY2009/10

    CONTRIBUTION TO GROUP OPERATING PROFIT – FY2009/10 2009/10 2008/09 Change ($M) ($M) ($M) Singapore Airlines (38.6) 822.9 - 861.5 SIA Engineering 110.4 112.6 - 2.2 SilkAir 49.2 33.6 + 15.6 SIA Cargo (145.1) (245.0) + 99.9 Slide 24

  25. Slide 25: Per Share Statistics – FY2009/10

    PER SHARE STATISTICS – FY2009/10 2009/10 2008/09 EBITDAR Per Share ($) 2.25 2.97 Dividend Per Share (¢) 12.0 40.0 At 31 Mar 10 At 31 Mar 09 Net Asset Value Per 11.30 11.78 Share ($) Slide 25

  26. Slide 26: Outlook for FY2010/11

    OUTLOOK FOR FY2010/11

  27. Slide 27: Demand Outlook

    DEMAND OUTLOOK „ Encouraging advance bookings „ Recovery in Business Class demand „ Yields to keep pace with growth in demand „ RPK to pace 2% ASK growth „ Uncertainties remain Slide 27

  28. Slide 28: Jet Fuel Price

    JET FUEL PRICE „ Rose to 18-month high of USD95/BBL in Apr 10 „ Forward curve indicates continued high and volatile prices Slide 28

  29. Slide 29: Passenger Fleet Development – FY2010/11

    PASSENGER FLEET DEVELOPMENT – FY2010/11 No. of Aircraft Operating Fleet at 31 March 10 108 IN: Delivery of + 12 ƒ A380-800 4 ƒ A330-300 8 OUT: - 11 ƒ Lease Out (B777s) 6 ƒ Sale (B777s) 4 ƒ Return to Lessor (B744) 1 Operating Fleet at 31 March 11 109 Slide 29

  30. Slide 30: Group Capital Expenditure for Next 5 Years

    GROUP CAPITAL EXPENDITURE FOR NEXT 5 YEARS ($ million) FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 Aircraft 1,300 2,100 1,350 2,350 2,750 Other Assets 150 100 50 50 50 Total 1,450 2,200 1,400 2,400 2,800 Slide 30

  31. Slide 31: Thank You

    THANK YOU

Singapore Airlines — FY2009/10 Earnings Presentation on 6ix