Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — FY2003-04 Earnings Presentation

36 slides from Singapore Airlines's earnings presentation, May 14, 2004

  1. Slide 1: FY2003-04 Financial Results

    FY2003-04 Financial Results 14 May 2004

  2. Slide 2: Order of Presentation

    ORDER OF PRESENTATION • THE GROUP • THE AIRLINE COMPANY • THE MAJOR SUBSIDIARIES • DEVELOPMENTS • OUTLOOK

  3. Slide 3: Group Results FY03/04 vs FY02/03

    GROUP RESULTS – FY03/04 vs FY02/03 ($million) 2003-04 2002-03 % Change Total Revenue 9,761.9 10,515.0 - 7.2 Total Expenditure (9,081.5) (9,797.9) - 7.3 Operating Profit 680.4 717.1 - 5.1 Net Profit Attributable to 849.3 1,064.8 - 20.2 Shareholders

  4. Slide 4: Group Results FY03/04 vs FY02/03 with Jul-Mar split

    GROUP RESULTS – FY03/04 vs FY02/03 ($million) 2003-04 2002-03 % Change Jul03- Jul02- Mar 04 Mar 03 Total Revenue 9,761.9 10,515.0 - 7.2 8,108.5 7,976.1 + 1.7 Total Expenditure (9,081.5) (9,797.9) - 7.3 (7,050.8) (7,503.0) - 6.0 Operating Profit 680.4 717.1 - 5.1 1,057.7 473.1 n.m. Net Profit Attribu

  5. Slide 5: Contribution to Group Operating Profit FY03/04

    CONTRIBUTION TO GROUP OPERATING PROFIT - FY03/04 Others SilkAir 6% (6%) 2% (4%) SIA 22% (29%) SIA Cargo 30% (9%) SATS 28% (32%) SIAEC 12% (20%)

  6. Slide 6: Change in Tax Rate FY03/04

    CHANGE IN TAX RATE – FY03/04 ($million) Tax Rate Tax Rate at 20% at 22% Difference Net Profit Attributable to 849.3 700.3 +149.0 Shareholders

  7. Slide 7: Group Results: EPS, Dividend, Net Asset Value

    GROUP RESULTS – FY03/04 vs FY02/03 2003-04 2002-03 Earnings Per Share (¢) 69.7 87.4 Proposed Final 25.0 9.0 Dividend Per Share (¢) At 31 Mar 04 At 31 Mar 03 Net Asset Value 9.40 8.79 Per Share ($) Total Debt/Equity 0.2:1 0.2:1

  8. Slide 8: The Airline Company Results FY03/04 vs FY02/03

    THE AIRLINE COMPANY RESULTS – FY03/04 vs FY02/03 ($million) 2003-04 2002-03 % Change Total Revenue 7,187.6 8,047.0 - 10.7 Total Expenditure (7,037.4) (7,838.0) - 10.2 Operating Profit 150.2 209.0 - 28.1 Net Profit 429.3 618.0 - 30.5

  9. Slide 9: The Airline Company Results with Jul-Mar split

    THE AIRLINE COMPANY RESULTS – FY03/04 vs FY02/03 ($million) 2003-04 2002-03 % Change Jul03- Jul02- Mar 04 Mar 03 Total Revenue 7,187.6 8,047.0 - 10.7 6,108.0 6,092.1 + 0.3 Total Expenditure (7,037.4) (7,838.0) - 10.2 (5,514.9) (6,000.4) - 8.1 Operating Profit 150.2 209.0 - 28.1 593.1 91.7 n.m. Net P

  10. Slide 10: The Airline Company FY03/04 Cost Composition

    THE AIRLINE COMPANY – FY03/04 COST COMPOSITION Others Airport & overflying 8.1% (+0.6 pt) Fuel charges 20.1% (+0.7 pt) 5.8% (-0.3 pt) Passenger costs 6.4% (-0.3 pt) Sales costs 6.7% (-1.2 pts) Staff Handling 17.4% (-0.6 pt) 8.9% (-0.3 pt) AMO Aircraft depr 10.8% (-0.7 pt) & rental 15.8% (+2.1 pts)

  11. Slide 11: The Airline Company Cost Analysis FY03/04 vs FY02/03

    THE AIRLINE COMPANY – COST ANALYSIS FY03/04 vs FY02/03 $1,416M Fuel (-7.1%) Staff $1,227M (-13.0%) Aircraft $1,112M depr & (+3.4%) rental AMO $760M (-15.8%) $628M FY2003-04 Handling (-12.7%) FY2002-03 Sales costs $473M (-23.5%) $1,422M Others (-10.5%) 0 300 600 900 1200 1500 1800 $ million

  12. Slide 12: The Airline Company Operating Performance

    THE AIRLINE COMPANY OPERATING PERFORMANCE – FY03/04 vs FY02/03 2003-04 2002-03 % Change Seat Capacity 88,252.7 99,565.9 - 11.4 (M ask) Passenger 64,685.2 74,183.2 - 12.8 Carriage (M pkm) Passenger Load 73.3 74.5 - 1.2 pts Factor (%)

  13. Slide 13: Passenger Capacity, Carriage & Load Factor FY03/04

    PASSENGER CAPACITY, PASSENGER CARRIAGE & PASSENGER LOAD FACTOR - FY03/04 (million) (%) 9,000 100 8,372.3 Passenger Capacity (ask) 90 8,000 Passenger Load Factor FY03/04 6,820.4 80 7,000 74.0 6,199.4 70 6,000 Passenger Carriage (pkm) 60 5,000 50 49.2 4,000 3,354.4 40 3,000 30 2,000 20 Apr May Jun Jul

  14. Slide 14: Passenger Load Factor

    PASSENGER LOAD FACTOR (%) 100 90 Passenger Load Factor FY03/04 80 76.1 74.0 70 Passenger Load Factor FY02/03 65.9 60 50 49.2 40 30 20 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

  15. Slide 15: The Airline Company Operating Performance: Yield and Cost

    THE AIRLINE COMPANY OPERATING PERFORMANCE – FY03/04 vs FY02/03 2003-04 2002-03 % Change Passenger Yield 9.2 9.1 + 1.1 (¢/pkm) Unit Yield (¢/ask) 6.8 6.8 - Unit Cost (¢/ask) 6.7 6.7 - Passenger 72.8 73.6 - 0.8 pt Breakeven Load Factor (%)

  16. Slide 16: Passenger Yield, Unit Cost & Breakeven Load Factor

    PASSENGER YIELD, UNIT COST & BREAKEVEN LOAD FACTOR – FY03/04 (cents) (%) 11.0 100 10.0 9.8 Passenger Yield (cts/pkm) 90 88.6 9.0 8.2 80 8.0 Breakeven Load Factor FY03/04 68.7 70 7.0 7.3 6.7 60 6.0 Unit Cost (cts/ask) 5.0 50 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

  17. Slide 17: Breakeven Load Factor

    BREAKEVEN LOAD FACTOR (%) 100 90 88.6 79.3 80 Breakeven Load Factor FY02/03 73.3 Breakeven Load Factor FY03/04 70 68.7 60 50 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

  18. Slide 18: The Airline Company Operating Performance by Period

    THE AIRLINE COMPANY – OPERATING PERFORMANCE Apr03- Jul03- Jul02- Jun03 Mar04 Mar03 Passenger Load 57.4 77.1 74.2 Factor (%) Passenger Yield 8.4 9.4 9.1 (¢/pkm) Unit Cost (¢/ask) 7.4 6.5 6.8 Passenger 88.1 69.1 74.7 Breakeven Load Factor (%)

  19. Slide 19: Fuel Price (Independent of Hedging)

    FUEL PRICE (INDEPENDENT OF HEDGING) US¢/AG 110 104.69 FY03/04 100 96.03 99.97 Average Fuel Price FY03/04 90 89.34 82.15 80 Average Fuel Price FY02/03 70 FY02/03 69.71 60 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

  20. Slide 20: Fuel Price Analysis

    FUEL PRICE ANALYSIS $107.4 million reduction in fuel costs (after hedging) : $ million 12.9% decrease in volume uplifted - 202.6 9.8% increase in weighted average + 134.6 fuel price 2.6% weakening of USD against SGD - 39.9 Lower hedging gain + 0.5 - 107.4

  21. Slide 21: Subsidiaries Operating Profit FY03/04 vs FY02/03

    SUBSIDIARIES OPERATING PROFIT – FY03/04 vs FY02/03 ($million) 2003-04 2002-03 % Change SIA Cargo 201.6 62.9 n.m. SATS Group 190.8 228.2 - 16.4 SIAEC Group 78.9 141.0 - 44.0 SilkAir 16.0 27.1 - 41.1 Others 18.2 13.9 + 30.9 Total 505.5 473.1 + 6.8

  22. Slide 22: SIA Cargo Results FY03/04 vs FY02/03

    SIA CARGO RESULTS – FY03/04 vs FY02/03 ($million) 2003-04 2002-03 % Change Total Revenue 2,654.4 2,520.5 + 5.3 Total Expenditure (2,452.8) (2,457.6) - 0.2 Operating Profit 201.6 62.9 n.m. Net Profit 175.9 66.6 n.m.

  23. Slide 23: SIA Cargo Operating Performance

    SIA CARGO OPERATING PERFORMANCE – FY03/04 vs FY02/03 2003-04 2002-03 % Change Capacity 10,156.5 9,927.1 + 2.3 (M ctk) Load Carried 6,749.4 6,913.6 - 2.4 (M ltk) Cargo Load 66.5 69.6 - 3.1 pts Factor (%)

  24. Slide 24: Cargo Capacity, Load Carried & Cargo Load Factor

    CARGO CAPACITY, LOAD CARRIED & CARGO LOAD FACTOR – FY03/04 (million) (%) 1,000 100 Cargo Capacity (ctk) 920.6 900 90 828.8 800 80 Cargo Load Factor 69.0 700 70 635.6 67.0 600 60 555.7 Load Carried (ltk) 500 50 400 40 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

  25. Slide 25: SIA Cargo Operating Performance: Yield and Cost

    SIA CARGO OPERATING PERFORMANCE – FY03/04 vs FY02/03 2003-04 2002-03 % Change Cargo Yield 36.7 34.2 + 7.3 (¢/ltk) Unit Cost 23.0 23.9 - 3.8 (¢/ctk) Breakeven 62.7 69.9 - 7.2 pts Load Factor (%)

  26. Slide 26: SilkAir Results FY03/04 vs FY02/03

    SILKAIR RESULTS – FY03/04 vs FY02/03 (S$million) 2003-04 2002-03 % Change Total Revenue 226.8 254.1 - 10.7 Total (210.8) (227.0) - 7.1 Expenditure Operating Profit 16.0 27.1 - 41.1 Net Profit 15.7 31.6 - 50.4

  27. Slide 27: SilkAir Operating Performance

    SILKAIR OPERATING PERFORMANCE – FY03/04 vs FY02/03 2003-04 2002-03 % Change Capacity 303.7 329.7 - 7.9 (M ctk) Load Carried 156.2 165.4 - 5.6 (M ltk) Overall Load 51.4 50.2 + 1.2 pts Factor (%)

  28. Slide 28: Capacity, Load Carried & Overall Load Factor

    CAPACITY, LOAD CARRIED & OVERALL LOAD FACTOR – FY03/04 (million) (%) 30 80 27.4 Capacity (ctk) 24.9 70 25 Overall Load Factor 60 20 48.9 50 15 13.4 36.5 40 Load Carried (ltk) 10 9.1 30 5 20 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

  29. Slide 29: Developments

    DEVELOPMENTS • New Collective Agreements • Re-Fleeting Plans • Capital Expenditure for Next 5 Years

  30. Slide 30: Capital Expenditure for Next 5 Years

    CAPITAL EXPENDITURE FOR NEXT 5 YEARS ($ million) FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 Aircraft 1,488 2,343 3,415 4,371 2,254 Other 200 200 200 200 200 Assets Total 1,688 2,543 3,615 4,571 2,454

  31. Slide 31: Outlook

    OUTLOOK • Passenger Network Expansion • Passenger Fleet Changes • Group Fuel Hedging Position

  32. Slide 32: Passenger Network Expansion FY03/04

    PASSENGER NETWORK EXPANSION – FY03/04 • New Services - Non-stop service to New York with A340-500 in June 04 - To Ahmedabad in July 04

  33. Slide 33: Passenger Network Expansion: Frequency Increases

    PASSENGER NETWORK EXPANSION – FY03/04 Frequency increases 2003-04 2004-05 (x wkly) (x wkly) - Brisbane 14 17 - Guangzhou 5 7 - Ho Chi Minh City 11 12 - Melbourne 17 19 - Seoul 22 25 •60 destinations, 33 countries by March 2005

  34. Slide 34: Passenger Fleet Changes

    PASSENGER FLEET CHANGES 2004-05 2005-06 At 1 April 85 89 New Deliveries • 2 A340-500s • 2 A380-800s • 5 B777s • 1 B777 De-commissioning • 3 B747-400s • 3 B747-400s of Aircraft At 31 March 89 89

  35. Slide 35: Group Fuel Hedging Position FY04/05

    GROUP FUEL HEDGING POSITION – FY04/05 • Budgeted Volume (M AG) 1,441 • Hedging Target (%) 50 • Percentage Hedged (%) 33 • Weighted Maximum Hedged Price (US¢/AG) 76.99 • Current Fuel Price (US¢/AG) 110.12

  36. Slide 36: Q&A

    Q&A

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