Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — 1H FY20/21 Earnings Presentation
37 slides from Singapore Airlines's earnings presentation, Nov 9, 2020
Slide 1: Analyst / Media Briefing 1H FY20/21 Results
ANALYST / MEDIA BRIEFING 1H FY20/21 Results 9 November 2020 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This material may n
Slide 2: Presentation by Senior Vice President Finance
PRESENTATION BY: Senior Vice President Finance Mr. Stephen Barnes The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This material
Slide 3: Group Financial Results
Group Financial Results The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This material may not be modified, reproduced, distribu
Slide 4: Key Takeaways – 1H FY20/21 Results
Group Financial Results Key Takeaways – 1H FY20/21 Results Net loss of $3.5 billion for the first half as Covid-19 continued to severely impact the Group First half operating result swung into a significant loss as passenger revenues collapsed on the slump in traffic. The effect was partly mitigated
Slide 5: Operating Results for 1H & Q2 FY20/21
Group Financial Results Operating Results for 1H & Q2 FY20/21 1H 1H Better/ Q2 Q2 Better/ FY20/21 FY19/20 (Worse) FY20/21 FY19/20 (Worse) ($’M) ($’M) (%) ($’M) ($’M) (%) Total Revenue 1,634.4 8,324.5 (80.4) 783.8 4,222.3 (81.4) Total Expenditure 3,497.3 7,911.4 55.8 1,609.9 4,009.2 59.8 -- Net fuel
Slide 6: Group Revenue 1H & Q2 FY20/21
Group Revenue 1H & Q2 FY20/21 Restrictions on international travel continued to severely impact passenger flown revenue $M 5,000 4,470.6 4,500 4,222.3 4,102.2 4,000 1H FY20/21 3,500 3,180.8 $1,634.4M 3,000 2,500 Year-on-Year 2,000 $6,690.1M (-80.4%) 1,500 1,000 850.6 783.8 500 0 Q1 Q2 Q3 Q4 Q1 Q2 FY
Slide 7: Group Revenue Breakdown 1H FY20/21
Group Revenue Breakdown 1H FY20/21 Decline in Group revenue partially offset by stronger cargo flown revenue Passenger Flown Revenue Cargo & Mail 155.3 1,239.8 (-6,653.6, -97.7%) (+273.6, +28.3%) Engineering Services 9.5% 73.6 75.9% (-164.3, -69.1%) 6.7% Other Passenger Revenue Others 56.2 109.5 (-1
Slide 8: Group Expenditure 1H & Q2 FY20/21
Group Expenditure 1H & Q2 FY20/21 Group expenditure continued to decline due to cost-saving initiatives and government support schemes $M 4,500 4,009.2 4,022.1 3,983.3 4,000 3,902.2 1H FY20/21 3,500 $3,497.3M 3,000 Year-on-Year $4,414.1M 2,500 (-55.8%) 2,000 1,887.4 1,609.9 1,500 Q1 Q2 Q3 Q4 Q1 Q2 F
Slide 9: Group Expenditure Breakdown 1H FY20/21
Group Expenditure Breakdown 1H FY20/21 Lower Group expenditure partially offset by fuel hedging ineffectiveness & fair value loss on fuel derivatives Depreciation & Leased Aircraft Charges AMO Costs 1,094.5 233.0 (+27.2, +2.5%) (-207.1, -47.1%) 31.3% Staff Costs Handling Charges 577.0 174.0 6.7% (-9
Slide 10: Group Expenditure – Fuel Cost 1H FY20/21
Group Expenditure – Fuel Cost 1H FY20/21 Lower fuel costs mainly due to capacity cuts and lower fuel prices $M Lower uplift 2,500 -1,978.3 2,348.9 2,000 1,500 -1,972.9 (-84.0%) 1,000 Lower Stronger weighted USD average Hedging against fuel price loss vs gain SGD 500 -234.2 +233.9 +5.7 376.0 0 1H FY1
Slide 11: Group Operating Performance 1H & Q2 FY20/21
Group Operating Performance 1H & Q2 FY20/21 Operating loss in first half largely due to decline in revenue and ineffective fuel hedges $M 600 448.5 400 200.0 213.1 200 0 Q1 Q2 Q3 Q4 Q4 Q1 Q1 Q2 1H FY20/21 (200) Q4 Q1 Op. Loss -$1,862.9M (400) $2,276.0M (600) (n.m.) (800) -802.5 -826.1 (1,000) -1,036
Slide 12: Group Operating Performance 1H FY20/21
Group Operating Performance 1H FY20/21 Operating loss in first half largely due to decline in passenger flown revenue $M 1,000 Lower pax 413.1 flown revenue 500 0 (500) -2,276.0 (n.m.) (1,000) • Fuel hedging ineffectiveness (1,500) (-461.8) +878.7 • Fair value loss on fuel (2,000) -1,862.9 derivativ
Slide 13: Operating Results for the Main Companies in the Group
Operating Results for the Main Companies in the Group 1H FY20/21 Better/ Better/ 1H FY20/21 1H FY19/20 Operating (Loss)/Profit (Worse) (Worse) ($’M) ($’M) ($’M) (%) SIA (Parent Airline (1,260.1) 465.0 (1,725.1) n.m. Company) SilkAir (165.1) (19.1) (146.0) n.m. Scoot (413.7) (76.9) (336.8) n.m. SIAEC
Slide 14: Group Loss 1H & Q2 FY20/21
Group Loss 1H & Q2 FY20/21 Net loss in first half largely due to weaker operating performance and impairment charges $M 600 400 314.8 200 111.1 94.5 -732.4 -1,123.3 -2,343.7 0 (200) 1H FY20/21 (400) -$3,467.0M (600) (800) (1,000) Year-on-Year (1,200) $3,672.6M (1,400) (n.m.) (1,600) (1,800) (2,000)
Slide 15: Group Loss 1H FY20/21
Group Loss 1H FY20/21 Net loss in first half largely due to weaker operating performance and impairment charges $M 500 205.6 0 (500) • Impairment of surplus aircraft (-1,333.1) (1,000) • Impairment of aircraft leased to NokScoot by Parent Airline Largely: (1,500) (-115.5) • Tax credit against tax ex
Slide 16: SIA Group Per Share Data
SIA Group Per Share Data 1H FY20/21 1H FY19/20 EBITDA per share(1) ($) (0.81) 1.21 Basic (Loss)/Earnings per share(2) (¢) (111.0) 10.9 Adjusted Basic (Loss)/Earnings per share(3) (¢) (150.5) 17.4 As at 30 Sep’20 As at 31 Mar’20 Net Asset Value per share(3) ($) 5.14 7.86 (1) Based on Loss/Profit befo
Slide 17: Presentation by Chief Executive Officer
PRESENTATION BY: Chief Executive Officer Mr. Goh Choon Phong The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This material may
Slide 18: Strengthening Financial Position, Stepping Up Operations, Engaging Stakeholders
1 Strengthening the Group’s Financial Position 2 Stepping Up Operations 3 Engaging Our Stakeholders 4 Emerging Stronger and Fitter The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independen
Slide 19: Strengthening the Group's Foundation
Strengthening the Group’s Foundation The Group has increased liquidity by approximately S$11.3 billion since the start of the financial year S$8.8 billion raised through shareholders’ support for S$2.0 billion raised through successful completion of rights aircraft secured financing issue Strengthen
Slide 20: Strengthening the Group's Financial Position
Strengthening the Group’s Financial Position Cash Conservation and Cost Reduction Measures Remain Firmly in Place Reducing discretionary expenditure Managing capacity in line with growing demand Deferring non-critical projects Renegotiating contracts Cash conservation and cost reduction Staff measur
Slide 21: Stepping Up Operations
Stepping Up Operations The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This material may not be modified, reproduced, distribut
Slide 22: Health Safety Measures across End-to-End Customer Journey
Stepping Up Operations Health Safety Measures across End-to-End Customer Journey Pre-flight Check-In/Lounge/Boarding Inflight Arrival/Post-flight Covid-19 Info Centre, Care Kit for pax Electronic Health Health assessment for passengers comms & enhanced Flight Declaration/ temperature Credits Rebooki
Slide 23: Covid-19 Air Travel Schemes
Stepping Up Operations Covid-19 Air Travel Schemes Reciprocal Green Lanes Unilateral border opening Air Travel Bubble for essential travel for non-essential travel China China Hong Kong Malaysia Australia Brunei Vietnam Korea New Zealand Japan Brunei Indonesia The copyright in this material (other t
Slide 24: Progressively Growing the SIA Group Network
Stepping Up Operations Progressively Growing the SIA Group Network SIA Group Passenger Capacity Growth By December 2020 % vs. pre-Covid 16% of pre-Covid capacity 37% of pre-Covid city links ≥ daily frequencies to key metros The copyright in this material (other than in respect of information from ex
Slide 25: Proactively Tapping on Cargo Demand
Stepping Up Operations Proactively Tapping on Cargo Demand Growth in cargo-only passenger flight network • Complements freighter network • Provides incremental cargo capacity and network reach Removal of aircraft seats to load cargo in cabin • 2x TR’s A320 • 2x SQ’s 777-300ER Includes flights on fre
Slide 26: Cargo Demand: Perishables and Pharmaceuticals
Stepping Up Operations Proactively Tapping on Cargo Demand Perishables Pharmaceuticals Enabling Continuous Supply of Fresh Foods Safe & Swift Delivery to Customers During Pandemic • On track to be 1st airline in Southeast Asia to obtain • Formed SIA Covid-19 Vaccine Taskforce to handle vaccine IATA
Slide 27: Group Portfolio and Vistara
Stepping Up Operations Group Portfolio and Vistara SilkAir integration is on track Resumption of Vistara’s operations • Entry-into-service of SIA narrow-body • Domestic operations resumed on 25 May flights and SilkAir-to-SIA routes o Approx. 55% of pre-Covid domestic transfers proceeding on track ca
Slide 28: Engaging Our Stakeholders
Engaging Our Stakeholders The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This material may not be modified, reproduced, distri
Slide 29: We Continue to Serve the Community and Care for Staff
Engaging Our Stakeholders We Continue to Serve the Community and Care for Staff SIA Group Ambassador Programmes Partnering Temasek Foundation support nationwide Efforts during Enabling safe return to workplace and World Food Programme (WFP) Covid-19 period • Providing transportation of • Enhanced cl
Slide 30: Discover Your Singapore Airlines Experiences
Engaging Our Stakeholders Discover Your Singapore Airlines Experiences Introduced in Oct20 Inside Restaurant Singapore SIA@Home Airlines A380 @Changi A restaurant dining experience on A taste of Singapore Airlines, A behind-the-scenes tour at the Singapore Airlines A380 delivered and enjoyed in the
Slide 31: Emerging Stronger and Fitter
Emerging Stronger and Fitter The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This material may not be modified, reproduced, dis
Slide 32: Continuing our Sustainability Journey
Emerging Stronger and Fitter Continuing our Sustainability Journey Modern and fuel-efficient fleet Solar panels installed Project Bento in SIN offices Compliance with Partnering World Sustainability international standards Food Programme Efforts SIA Group Ambassador Exploring Sustainable Programmes
Slide 33: Continuing our Sustainability Journey: Fleet, Solar, Project Bento
Emerging Stronger and Fitter Continuing our Sustainability Journey Modern and fuel- Solar panels installed Project Bento efficient fleet in SIN offices 6 years 9,700 solar panels installed Eco-friendly Dining Concept One of the youngest fleet in the world • 5,400MWh energy generated • Forest Steward
Slide 34: Key Objectives
Emerging Stronger and Fitter Grow New Businesses Key Objectives New revenue streams that $ leverage on brand, data and competencies CORE Increased Customer Mindshare Develop New Capabilities The copyright in this material (other than in respect of information from external sources) is owned by Singa
Slide 35: New Revenue Streams Leveraging Brand, Data and Competencies
Emerging Stronger and Fitter New Revenue Streams that Leverage on Brand, Data and Competencies SIA’s Lifestyle Ecosystem Personalised destination-discovery Offering training programmes to businesses and trip-planning platform across different industries • Further power growth for the KrisFlyer • Aut
Slide 36: Transforming to Lead the New World
Emerging Stronger and Fitter Transforming to Lead the New World Leveraging on Strong Foundations Strong and Strong Talented and Strong Trusted Brand Balance Sheet Highly Skilled Workforce Digital Capabilities Lead The New World – Embarked on a New 3-Year Transformation Chapter WORLD-CLASS LEADER FIN
Slide 37: Thank You
Thank You The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This material may not be modified, reproduced, distributed, republish
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