Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — FY2004-05 Earnings Presentation

31 slides from Singapore Airlines's earnings presentation, May 11, 2005

  1. Slide 1: FY2004-05 Financial Results

    FY2004-05 Financial Results 11 May 2005

  2. Slide 2: SIA Group Results FY2004-05

    SIA GROUP RESULTS FY2004-05 SINGAPORE AIRLINES y,

  3. Slide 3: Group Revenue – FY2004/05

    GROUP REVENUE – FY2004/05 ($ million) ($ million) 14,000 +14% +23% 12,013 12,000 10,515 9,852 9,762 10,000 9,383 8,000 6,000 4,000 2,000 0 2001 2002 2003 2004 2005

  4. Slide 4: Group Net Profit – FY2004/05

    GROUP NET PROFIT – FY2004/05 ($ million) ($ million) 1,800 1,625 1,600 +31% +64% 1,389 1,400 440 1,200 1,065 1,185 1,000 849 800 632 600 400 200 0 2001 2002 2003 2004 2005

  5. Slide 5: Group Earnings & Dividends per Share – FY2004/05

    GROUP EARNINGS & DIVIDENDS PER SHARE – FY2004/05 (cents) 160 Earnings per share 140 133 120 114 100 97 87 Dividend 80 70 per share 60 52 40* 40 35 25 20 15 15 0 2001 2002 2003 2004 2005 * Includes a proposed final dividend of 30¢ per share

  6. Slide 6: Group Net Asset Value per Share – FY2004/05

    GROUP NET ASSET VALUE PER SHARE – FY2004/05 ($) 12 10.21 10 9.40 8.79 8.19 8.08 8 6 4 2 0 2001 2002 2003 2004 2005

  7. Slide 7: Contribution to Group Operating Profit – FY04/05 vs FY03/04

    CONTRIBUTION TO GROUP OPERATING PROFIT – FY04/05 vs FY03/04 SilkAir Others 2% (2%) 3% (6%) SIA Cargo 19% (30%) SIA SIAEC 53% (22%) 8% (12%) FY03/04 SATS Contribution 15% (28%)

  8. Slide 8: SIA – The Parent Airline Company FY2004-05

    SIA – THE PARENT AIRLINE COMPANY FY2004-05

  9. Slide 9: Passenger Airline Company Operating Performance – FY2004/05

    THE PASSENGER AIRLINE COMPANY OPERATING PERFORMANCE – FY2004/05 (Billion KM) (%) 160 75 74.5 Passenger load factor (%) 140 74.1 74 73.3 120 104.7 73 99.6 100 88.3 18.6% 72 77.6 80 74.2 64.7 20.0% 60 40 ASK RPK 20 0 2003 2004 2005

  10. Slide 10: Passenger Airline Company Operating Performance – FY04/05

    THE PASSENGER AIRLINE COMPANY OPERATING PERFORMANCE – FY04/05 (cents) (%) 20 78 Passenger load factor (%) 18 76 74.5 73.3 74.1 74 16 73.6 72 14 BELF (%) 72.8 Revenue cts/RPK 70 12 69.3 10.1 68 9.1 Cost cts/ASK 9.2 10 8 6.7 6.7 7.0 6 4 2 0 2003 2004 2005

  11. Slide 11: Passenger Airline Company Cost Composition – FY04/05

    THE PASSENGER AIRLINE COMPANY COST COMPOSITION – FY04/05 Others Fuel (net) 27.0% 25.2% (no change) (+5.1 pts) Handling Staff 8.5% 17.9% (-0.4 pt) (+0.5 pt) AMO 8.6% (-2.2pts) Aircraft depreciation & rental 12.8% (-3.0 pts)

  12. Slide 12: Passenger Airline Company Cost Analysis – FY04/05

    THE PASSENGER AIRLINE COMPANY COST ANALYSIS – FY04/05 $1,416M $732M Fuel (net) $2,148M (+51.7%) FY2003-04 $1,226M FY2004-05 $300M Staff $1,526M (+24.5%) 0 500 1000 1500 2000 2500 $ million

  13. Slide 13: Fuel Price (Independent of Hedging)

    FUEL PRICE (INDEPENDENT OF HEDGING) 70 Fuel Price FY04/05 65 59.4 60 Average Price FY04/05 54.5 55 USD/BBL 50 42.2 Fuel Price FY03/04 42.0 45 40 Average Price FY03/04 37.5 35 40.3 30 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

  14. Slide 14: Passenger Airline Company Fuel Cost Analysis – FY04/05

    THE PASSENGER AIRLINE COMPANY FUEL COST ANALYSIS – FY04/05 ($ million) 2004-05 2003-04 Change Fuel cost 2,451 1,463 + 988 Hedging (gain)/loss (303) (47) - 256 Fuel cost (net) 2,148 1,416 + 732

  15. Slide 15: Passenger Airline Company Fuel Cost Analysis – FY04/05

    THE PASSENGER AIRLINE COMPANY FUEL COST ANALYSIS – FY04/05 $988 million increase in fuel costs (before hedging) : $ million Increase in volume uplifted + 290 Increase in weighted average fuel price + 771 Weakening of USD against SGD - 73 + 988 Fuel surcharge collected in FY04/05 167

  16. Slide 16: Passenger Airline Company Staff Cost Analysis – FY04/05

    THE PASSENGER AIRLINE COMPANY STAFF COST ANALYSIS – FY04/05 $300 million increase in staff costs: $ million Service increments + 18 Expansion of operations + 54 Adjustment under new CAs + 62 Higher provision for profit sharing bonus + 151 Various + 15 + 300

  17. Slide 17: Subsidiaries' Performance FY2004-05

    SUBSIDIARIES’ PERFORMANCE FY2004-05

  18. Slide 18: Subsidiaries Net Profit – FY04/05 vs FY03/04

    SUBSIDIARIES NET PROFIT – FY04/05 vs FY03/04 ($ million) 2004-05 2003-04 % Change SIA Cargo 183.8 175.9 + 4.5 SATS Group 173.8 189.8 -- 8.4 SIAEC Group 175.1 139.9 + 25.2 SilkAir 30.6 15.7 + 94.9

  19. Slide 19: SIA Cargo Results – FY04/05 vs FY03/04

    SIA CARGO RESULTS – FY04/05 vs FY03/04 ($million) 2004-05 2003-04 % Change Total Revenue 2,864.5 2,402.0 + 19.3 Total Expenditure (2,602.0) (2,200.4) + 18.3 Operating Profit 262.5 201.6 + 30.2 Net Profit 183.8 175.9 + 4.5

  20. Slide 20: SIA Cargo Operating Performance – FY04/05 vs FY03/04

    SIA CARGO OPERATING PERFORMANCE – FY04/05 vs FY03/04 2004-05 2003-04 % Change Capacity 11,544.1 10,156.5 + 13.7 (M ctk) Load Carried 7,333.2 6,749.4 + 8.6 (M ltk) Cargo Load 63.5 66.5 - 3.0 pts Factor (%)

  21. Slide 21: SIA Cargo Operating Performance – FY04/05 vs FY03/04

    SIA CARGO OPERATING PERFORMANCE – FY04/05 vs FY03/04 2004-05 2003-04 % Change Cargo Yield 35.9 33.1 + 8.5 (¢/ltk) Unit Cost 21.3 20.6 + 3.4 (¢/ctk) Breakeven 59.3 62.2 - 2.9 pts Load Factor (%)

  22. Slide 22: SilkAir Results – FY04/05 vs FY03/04

    SILKAIR RESULTS – FY04/05 vs FY03/04 ($ million) 2004-05 2003-04 % Change Total Revenue 294.2 226.8 + 29.7 Total Expenditure (270.6) (210.8) + 28.4 Operating Profit 23.6 16.0 + 47.5 Net Profit 30.6 15.7 + 94.9

  23. Slide 23: SilkAir Operating Performance – FY04/05 vs FY03/04

    SILKAIR OPERATING PERFORMANCE – FY04/05 vs FY03/04 2004-05 2003-04 % Change Capacity 385.3 303.7 + 26.9 (M ctk) Load Carried 200.0 156.2 + 28.0 (M ltk) Overall Load 51.9 51.4 + 0.5 pt Factor (%)

  24. Slide 24: SilkAir Operating Performance – FY04/05 vs FY03/04

    SILKAIR OPERATING PERFORMANCE – FY04/05 vs FY03/04 2004-05 2003-04 % Change Overall Yield 134.4 131.6 + 2.1 (¢/ltk) Overall Unit Cost 66.7 65.7 + 1.5 (¢/ctk) Overall Breakeven 49.6 49.9 - 0.3 pt Load Factor (%)

  25. Slide 25: Outlook & Developments

    OUTLOOK & DEVELOPMENTS SINGAPORE AIRLINES y,

  26. Slide 26: Group Capital Expenditure for Next 5 Years

    GROUP CAPITAL EXPENDITURE FOR NEXT 5 YEARS ($ million) FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 Aircraft 2,300 4,100 5,000 3,900 1,800 Other 300 300 200 500 200 Assets Total 2,600 4,400 5,200 4,400 2,000

  27. Slide 27: Group Fuel Hedging Position – FY05/06

    GROUP FUEL HEDGING POSITION – FY05/06 • Budgeted Uplift Volume (M BBL) 36 • Hedging Target (%) 30-60 • Percentage Hedged (%) 32 • Weighted Average Hedged Price (USD/BBL) 53.96 • Current Fuel Price (USD/BBL) 65.33

  28. Slide 28: Passenger Network Expansion – FY05/06

    PASSENGER NETWORK EXPANSION – FY05/06 Frequency increases Planned FY05/06 (x weekly) (x weekly) - Brisbane + 2 21 - Melbourne + 2 21 - Perth + 2 19 - Christchurch + 2 7 - Beijing + 7 21 - Shenzhen + 4 7 - Fukuoka + 2 7 - Kolkata + 1 4 - Mumbai + 2 14

  29. Slide 29: Passenger Network Expansion – FY05/06

    PASSENGER NETWORK EXPANSION – FY05/06 Frequency increases Planned FY05/06 (x weekly) (x weekly) - Surabaya + 1 7 - Penang + 4 18 - Hanoi + 1 7 - Ho Chi Minh City + 2 14 • 4.8% growth in capacity • 60 destinations in 32 countries by March 06

  30. Slide 30: Outlook

    OUTLOOK • Australia Transpacific Route in 2006 • First to Fly A380 in 2006

  31. Slide 31: Be Part of Aviation History

    Be Part of Aviation History Experience the difference in 2006 oe

Singapore Airlines — FY2004-05 Earnings Presentation on 6ix