Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — Q1 FY2017-18 Earnings Presentation
23 slides from Singapore Airlines's earnings presentation, Jun 30, 2017
Slide 1: SIA Group Financial Results for Q1 FY2017-18
SIA GROUP FINANCIAL RESULTS For Q1 FY2017-18 Ended 30 June 2017 197200078R
Slide 2: SIA Group Q1 FY2017-18
SINGAPORE AIRLINES SIA GROUP Q1 FY2017-18
Slide 3: Operating Result
SIA GROUP Q1 FY2017-18 Operating Result Q1 Q1 Better/ Better/ FY17/18 FY16/17 (Worse) (Worse) ($M) ($M) ($M) (%) Total Revenue 3,864 3,658 206 5.6 Total Revenue (excl one-offs) 3,691 3,507 184 5.2 Total Expenditure 3,583 3,465 (118) (3.4) -- Net fuel cost 926 895 (31) (3.4) Fuel cost 900 754 (146) (
Slide 4: Group Revenue
SIA GROUP Q1 FY2017-18 Group Revenue $M 3,900 3,864 3,840 3,800 3,733 Q1 FY17/18 vs 3,700 3,682 Q1 FY16/17 3,658 $206M (+5.6%) 3,600 3,500 Q1 Q1 Q1 Q1 Q1 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Slide 3
Slide 5: Group Expenditure
SIA GROUP Q1 FY2017-18 Group Expenditure $M 3,800 3,759 3,700 3,643 3,622 3,600 3,583 Q1 FY17/18 vs Q1 FY16/17 3,500 3,465 $118M (+3.4%) 3,400 3,300 Q1 Q1 Q1 Q1 Q1 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Slide 4
Slide 6: Cost Composition ($M)
SIA GROUP Q1 FY2017-18 Cost Composition ($M) AMO Costs Depreciation and 237.6 Lease Rentals (+30.5, +14.7%) 611.9 Handling Charges (+6.9, +1.1%) 330.9 (+37.8, +12.9%) LPO* Charges 6.6% 17.1% Staff Cost 210.7 9.2% 650.0 (+10.5, +5.2%) (-8.6, -1.3%) 5.9% 18.1% Passenger Costs 181.0 5.1% (+2.2, +1.2%)
Slide 7: Composition of Increase in Fuel Cost
SIA GROUP Q1 FY2017-18 Composition of Increase in Fuel Cost $M (After Hedging) 1,100 Lower hedging +123 loss 1,000 Stronger USD against SGD +19 926 +3 +30 896 900 (+3.3%) -115 Higher uplift Higher weighted average fuel price 800 Q1 FY16/17 Price Hedging Volume Exchange Q1 FY17/18 Slide 6
Slide 8: Composition of Increase in Operating Profit
SIA GROUP Q1 FY2017-18 Composition of Increase in Operating Profit $M Mainly: 400 - Higher handling charges -37.8 +178 - Higher AMO costs -30.5 - Higher LPO charges -10.5 350 300 +121 +22 +7 281 -89 250 +88 Higher ex- -30 Higher +57 (+45.6%) fuel costs Higher net one-off 193 200 fuel cost items High
Slide 9: Group Operating Profit
SIA GROUP Q1 FY2017-18 Group Operating Profit $M % 400 8 7.3 Op. Profit $281M 300 281 6 +$88M 5.3 (+45.6%) 193 200 4 3.0 Operating 2.1 111 Profit Margin 100 82 2 1.1 2.0% pts 40 0 0 Q1 Q1 Q1 Q1 Q1 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Slide 8
Slide 10: Group Operating Profit
SIA GROUP Q1 FY2017-18 Group Operating Profit Q1 Q1 Better/ Better/ FY17/18 FY16/17 (Worse) (Worse) ($M) ($M) ($M) (%) SIA 241 197 44 22.3 SIA (excl one-offs) 68 52 16 30.8 SIAEC Group 18 (2) 20 n.m. SIA Cargo 6 (34) 40 n.m. SilkAir 7 27 (20) (74.1) SilkAir (excl one-offs) 7 21 (14) (66.7) BAH 3 9 (
Slide 11: Group Net Profit
SIA GROUP Q1 FY2017-18 Group Net Profit $M 300 257 235 Q1 FY17/18 200 Net Profit $235M 122 $22M 91 (-8.6%) 100 35 0 Q1 Q1 Q1 Q1 Q1 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Slide 10
Slide 12: Group Profit Attributable to Owners of the Parent
SIA GROUP Q1 FY2017-18 Group Profit Attributable to Owners of the Parent $M 300 Absence of gain on SIAEC’s divestment & 257 special dividend 235 -22 +38 (-8.6%) +8 Higher +47 taxation 200 Gain on disposal -11 Lower non- versus loss controlling +88 last year interests Lower share of losses of Higher
Slide 13: Parent Airline Company Q1 FY2017-18
PARENT AIRLINE COMPANY Q1 FY2017-18
Slide 14: Parent Airline Company Q1 FY2017-18
PARENT AIRLINE COMPANY Q1 FY2017-18 Q1 Q1 Change FY17/18 FY16/17 % Available Seat-KM (M) 28,962.9 29,187.9 (0.8) Revenue Passenger-KM (M) 23,176.1 22,136.9 4.7 Passenger Load Factor (%) 80.0 75.8 4.2 pts Pax Yield (¢/pkm) 10.1 10.3 (1.9) Passenger Unit Cost (¢/ask) 8.3 8.0 3.8 Passenger Unit Ex-fuel
Slide 15: Monthly Pax Yields
PARENT AIRLINE COMPANY Q1 FY2017-18 Monthly Pax Yields 11.5 ¢/pkm 2015-16 2016-17 2017-18 11.0 11.0 10.9 10.9 10.7 10.7 10.6 10.6 10.6 10.5 10.5 10.5 10.5 10.4 10.3 10.3 10.3 10.3 10.2 10.2 10.1 10.2 10.2 10.0 10.1 10.1 9.9 9.7 9.5 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Slide 14
Slide 16: Parent Airline Company Operating Result
PARENT AIRLINE COMPANY Q1 FY2017-18 Operating Result Q1 Q1 Better/ Better/ FY17/18 FY16/17 (Worse) (Worse) ($M) ($M) ($M) (%) Total Revenue 2,868 2,797 71 2.5 Total Revenue (excl one-offs) 2,695 2,652 43 1.6 Total Expenditure 2,627 2,600 (27) (1.0) -- Net fuel cost 706 698 (8) (1.1) Fuel cost 685 58
Slide 17: Parent Airline Company Cost Composition ($M)
PARENT AIRLINE COMPANY Q1 FY2017-18 Cost Composition ($M) Staff Cost AMO Costs Handling Charges 413.3 191.1 231.3 (+2.0, +0.5%) (-2.6, -1.3%) (+5.5, +2.4%) Aircraft depreciation and LPO* Charges 15.7% 7.3% Lease Rentals 155.3 8.8% 462.5 (+6.7, +4.5%) (+2.9, +0.6%) 5.9% 17.6% 6.3% Passenger Costs 11.
Slide 18: Passenger Unit Cost
PARENT AIRLINE COMPANY Q1 FY2017-18 ¢/ask Passenger Unit Cost 10 8.3 8.0 8 Unit Fuel Cost 2.44 (2.1%) 2.39 6 1.43 (1.4%) 1.41 Unit Staff Cost 4 Unit Other Cost 2 4.16 4.40 (5.8%) 0 Q1 FY16/17 Q1 FY17/18 Slide 17
Slide 19: Updates & Developments
SINGAPORE AIRLINES UPDATES & DEVELOPMENTS
Slide 20: Fuel Hedging Update
FUEL HEDGING UPDATE Q2 FY17/18 Jet Fuel Brent Percentage hedged (%) 41.9 - Average hedged price (USD/BBL) 63 - Maturities Up To FY22/23 Jet Fuel Brent Percentage hedged (%) - Up to 47% Average hedged price (USD/BBL) - 53-59 Slide 19
Slide 21: Scoot-Tigerair Integration
SCOOT-TIGERAIR INTEGRATION 25 July - Completion of Scoot-Tigerair integration process that began in May’16 when the airlines were brought under BAH Single brand and operating licence for Scoot and Tigerair Tigerair flights will be operated under the Scoot brand and Scoot flights will operate u
Slide 22: Network Expansion Through Portfolio Strategy
NETWORK EXPANSION THROUGH PORTFOLIO STRATEGY New Group destinations in FY17/18 SIA : Stockholm SilkAir : Hiroshima Scoot : Athens, Honolulu, Harbin, Kuantan SIA Group serves 137 destinations in 37 countries Slide 21
Slide 23: Thank You
Singapore Airlines — Q1 FY2017-18 Earnings Presentation on 6ix