Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — H1 FY2017/18 Earnings Presentation

20 slides from Singapore Airlines's earnings presentation, Nov 7, 2017

  1. Slide 1: SIA Business Meeting: Q2 and 1H FY17/18 Results

    SIA BUSINESS MEETING Q2 and 1H FY17/18 Results 7 November 2017

  2. Slide 2: The Parent Airline Q2 and 1H FY17/18 Results

    THE PARENT AIRLINE Q2 AND 1H FY17/18 RESULTS

  3. Slide 3: Operating Performance

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Q2 % 1H % FY17/18 Change FY17/18 Change Available Seat-KM 30,047 +0.5 59,010 -0.1 (million) Revenue Pax-KM 24,579 +2.3 47,755 +3.4 (million) Passenger Load 81.8 +1.4 pts 80.9 +2.8 pts Factor (%) Slide 3

  4. Slide 4: Operating Performance: Passenger Yield

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Q2 % 1H % FY17/18 Change FY17/18 Change Passenger Yield 10.0 -2.0 10.1 -1.9 (¢/pkm) Slide 4

  5. Slide 5: Operating Performance: Monthly Pax Yields

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Monthly Pax Yields ¢/pkm FY15/16 FY16/17 FY17/18 11.5 11.2 11.1 11.0 11.0 10.8 10.8 10.7 10.7 10.7 10.7 10.7 10.6 10.5 10.5 10.5 10.4 10.4 10.4 10.3 10.3 10.3 10.2 10.2 10.0 10.2 10.2 10.1 10.1 10.1 9.8 9.8 9.5 Apr May Jun Jul Aug Sep Oct Nov Dec Jan

  6. Slide 6: Operating Performance: Yield and Unit Cost

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Q2 % 1H % FY17/18 Change FY17/18 Change Passenger Yield 10.0 -2.0 10.1 -1.9 (¢/pkm) Revenue per ASK 8.2 - 8.2 +1.2 (¢/ask) Passenger Unit Cost 8.2 - 8.2 +1.2 (¢/ask) Passenger Unit Ex- 5.8 - 5.8 +1.8 Fuel Cost (¢/ask) Passenger Breakeven 82.0 +1.6 pts

  7. Slide 7: Operating Performance: Load Factors

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE (%) Passenger Load Factor 85 Breakeven Load Factor 82.1 81.3 81.2 80.9 -0.3 -2.5 -1.3 -1.1 80.9 80 79.8 80.0 78.6 79.6 -0.5 78.1 75 70 1H FY13/14 1H FY14/15 1H FY15/16 1H FY16/17 1H FY17/18 Slide 7

  8. Slide 8: Results

    THE PARENT AIRLINE COMPANY RESULTS Q2 Better/ 1H Better/ FY17/18 (Worse) FY17/18 (Worse) $million $million $million $million Total Revenue 2,856 90 5,724 161 Total Expenditure 2,686 1 5,313 (26) - Net Fuel Cost 716 17 1,422 9 Fuel Cost 713 (95) 1,398 (194) Fuel Hedging Loss 3 112 24 202 - Ex-fuel Co

  9. Slide 9: Cost Composition

    THE PARENT AIRLINE COMPANY COST COMPOSITION 1H FY17/18 ($’M) Staff Cost Handling Charges AMO Costs 852.4 465.3 362.3 (+27.6, +3.3%) (+12.8, +2.8%) (-39.2, -9.8%) 16.0% 6.8% LPO* Charges 8.8% Aircraft 313.7 5.9% 17.4% Depreciation and (+14.4, +4.8%) Lease Rentals 6.2% 926.0 (+1.9, +0.2%) Passenger Co

  10. Slide 10: Fuel Expenditure

    THE PARENT AIRLINE COMPANY FUEL EXPENDITURE ($ million) 1,500 Lower hedging 1,431 loss -9 +25 1,422 (-0.6%) +168 1,400 Stronger USD against SGD 1,300 -202 Higher 1,200 weighted average fuel price 1,100 1H Hedging Price Exchange 1H FY16/17 FY17/18 Slide 10

  11. Slide 11: Unit Cost Analysis

    THE PARENT AIRLINE COMPANY UNIT COST ANALYSIS (¢/ask) 10 8.1 8.2 8 Unit Fuel Cost 2.4 (-) 2.4 6 1.4 Unit Staff Cost 1.4 (-) 4 Unit Other Cost 2 4.3 4.4 (+2.3%) 0 1H FY16/17 1H FY17/18 Slide 11

  12. Slide 12: SIA Group Q2 and 1H FY17/18 Results

    SIA GROUP Q2 AND 1H FY17/18 RESULTS

  13. Slide 13: Group Revenue

    GROUP REVENUE ($ million) 3,900 1H 17/18 3,864 3,847 3,848 Revenue 3,800 $7,712M 3,711 3,700 3,658 3,653 Year-on-Year 3,600 $9M $401M -0.1% +5.5% 3,500 Q1 Q2 Q3 Q4 Q1 Q2 FY16/17 FY17/18 Slide 13

  14. Slide 14: Group Expenditure

    GROUP EXPENDITURE ($ million) 3,700 3,683 1H 17/18 Expenditure 3,616 3,600 3,583 $7,199M 3,544 3,554 3,500 3,465 Year-on-Year 3,400 $9M $190M -0.1% +2.7% 3,300 Q1 Q2 Q3 Q4 Q1 Q2 FY16/17 FY17/18 Slide 14

  15. Slide 15: Group Operating Profit

    GROUP OPERATING PROFIT ($ million) 400 1H 17/18 Op Profit 300 293 281 $513M 232 193 200 Year-on-Year 109 100 $9M $211M -0.1% +69.9% 28 0 Q1 Q2 Q3 Q4 Q1 Q2 FY16/17 FY17/18 Slide 15

  16. Slide 16: Contribution to Group Operating Profit

    CONTRIBUTION TO GROUP OPERATING PROFIT 1H 1H ($ million) FY17/18 FY16/17 Change % Change Singapore Airlines 411 276 135 48.9 SilkAir 21 44 (23) - 52.3 Scoot 5 17 (12) - 70.6 SIA Cargo 32 (45) 77 n.m. SIAEC 38 23 15 65.2 Slide 16

  17. Slide 17: Group Profit Attributable to Owners of Parent

    GROUP PROFIT ATTRIBUTABLE TO OWNERS OF PARENT ($ million) 300 1H 17/18 257 235 Net Profit 190 200 177 $425M 100 65 0 Year-on-Year $9M $103M -100 -0.1% +32.0% -138 -200 Q1 Q2 Q3 Q4 Q1 Q2 FY16/17 FY17/18 Slide 17

  18. Slide 18: Group Profit Attributable to Owners of Parent

    GROUP PROFIT ATTRIBUTABLE TO OWNERS OF PARENT ($ million) 600 +211 -27 -178 500 Net interest expense +37 425 +39 -25 against 400 income +46 last year Higher Lower +103 322 Gain on non- taxation (+32.0%) disposal of controlling 300 Higher Absence of Lower aircraft vs interests operating gain on share

  19. Slide 19: Per Share Data

    PER SHARE DATA 1H FY17/18 1H FY16/17 EBITDAR Per Share ($) 1.53 1.43 Earnings Per Share (¢) 36.0 27.2 Interim Dividend Per Share (¢) 10.0 9.0 At 30 Sep’17 At 31 Mar’17 Net Asset Value Per Share ($) 11.39 11.07 Slide 19

  20. Slide 20: Thank You

    THANK YOU SINGAPORE AIRLINES

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