Singapore Airlines Ltd. · SGX:C6L

Singapore Airlines — H1 FY2014/15 Earnings Presentation

24 slides from Singapore Airlines's earnings presentation, Nov 7, 2014

  1. Slide 1: SIA Analyst/Media Briefing 1H FY2014/15 Results

    SIA ANALYST/MEDIA BRIEFING 1H FY2014/15 Results 07 November 2014 THE PARENT AIRLINE 1H FY2014/15 RESULTS 1

  2. Slide 2: Parent Airline Operating Performance 2Q & 1H FY14/15

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – 2Q & 1H FY14/15 % % 2Q/14 Change 1H/14 Change Available Seat-KM 30,562 -1.1 60,825 -0.2 (million) Revenue Pax-KM 25,016 -0.2 48,516 +0.1 (million) Passenger Load 81.9 +0.8 pt 79.8 +0.2 pt Factor (%) Slide 3 THE PARENT AIRLINE COMPANY OPERATING PERFO

  3. Slide 3: Parent Airline Results 2Q & 1H FY14/15

    THE PARENT AIRLINE COMPANY RESULTS – 2Q & 1H FY14/15 Better/ Better/ 2Q/14 (Worse) 1H/14 (Worse) $million $million % $million $million % Total Revenue 3,222 - - 6,231 (151) (2.4) Total Expenditure 3,084 41 1.3 6,048 148 2.4 - Fuel Cost 1,175 105 8.3 2,353 98 4.0 - Fuel Hedging 18 (62) n.m. (10) 1 7.

  4. Slide 4: Parent Airline Operating Performance: Load Factor

    THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor Breakeven Load Factor (%) 88 84 82.7 79.8 80.7 80 79.4 78.0 79.6 79.6 79.8 76 77.5 75.4 72 68 0 1H 10/11 1H 11/12 1H 12/13 1H 13/14 1H 14/15 Slide 7 THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor Breakeven

  5. Slide 5: Monthly Passenger Yield and Cost Composition

    THE PARENT AIRLINE COMPANY MONTHLY PASSENGER YIELD 2012-13 2013-14 2014-15 ¢/pkm 12 11.6 11.6 11.5 11.4 11.4 11.3 11.3 11.4 11.2 11.2 11.2 11.3 11.1 11.3 11.3 11.2 11 10.9 11.1 11.1 11.1 10.8 11.0 10.9 10.9 10.7 10.8 10.8 10.7 10 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Slide 9 THE PARENT AIR

  6. Slide 6: Top Expenditure Items and Fuel Price Trend

    THE PARENT AIRLINE COMPANY TOP EXPENDITURE ITEMS – 1H FY14/15 Composition of decrease in Operating Expenditure $M -99.1 6,195.7 (-4.1%) 6,200 6,150 Higher revaluation -147.7 and (-2.4%) -26.7 hedging (-3.3%) -6.9 loss 6,100 (-2.1%) Lower net fuel +11.5 6,048.0 cost +8.1 -34.6 (+44.1%) (+2.4%) (-1.5%

  7. Slide 7: Fuel Expenditure 1H FY14/15

    THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – 1H FY14/15 $M Lower 2500 volume 2,442 uplifted Lower weighted Higher 2400 Weaker hedging -99 average US Dollar gain vs (-4.1%) fuel price -75 last year -14 2,343 -9 -1 2300 1H Volume Exchange Price Hedging 1H FY13/14 FY14/15 Slide 13 THE GROUP 1H FY2014/

  8. Slide 8: Group Revenue and Expenditure 1H FY2014/15

    GROUP REVENUE – 1H FY2014/15 2013/14 2014/15 ($ million) Half Year 4,000 3,901 3,905 +$4m Revenue 3,840 +0.1% $7,587M 3,750 3,682 -$158m -4.1% 3,500 Year-on-Year $154M 3,250 -2.0% 3,000 2,750 0 Q1 Q2 Slide 15 GROUP EXPENDITURE – 1H FY2014/15 2013/14 2014/15 ($ million) Half Year 4,000 3,814 3,773 -$

  9. Slide 9: Group Operating Profit and Contribution

    GROUP OPERATING PROFIT – 1H FY2014/15 2013/14 2014/15 ($ million) Half Year 150 Op Profit 132 $171M 125 +$45m +51.7% 100 Year-on-Year 82 87 $2M 75 +1.2% -$43m -52.4% 50 39 25 0 Q1 Q2 Slide 17 CONTRIBUTION TO GROUP OPERATING PROFIT – 1H FY14/15 ($ million) 1H 1415 1H 13/14 Change % Change Singapore A

  10. Slide 10: Group Net Profit 1H FY2014/15

    GROUP NET PROFIT – 1H FY2014/15 2013/14 2014/15 ($ million) Half Year 200 Net Profit $126M 161 150 Year-on-Year -$70M 122 -43.5% $157M -55.5% 100 91 -$87M -71.3% 50 35 0 Q1 Q2 Slide 19 GROUP NET PROFIT – 1H FY2014/15 ($ million) 300 283 -154 250 -157 200 -55.5% 150 -32 -4.0 +31 Share of 126 losses f

  11. Slide 11: Group Results and Fleet Development - SIA

    GROUP RESULTS – 1H FY2014/15 1H 1415 1H 1314 EBITDAR Per Share ($) 1.09 1.25 Earnings Per Share (¢) 10.7 24.0 Interim Dividend Per 5.0 10.0 Share (¢) At 30 Sep 14 At 31 Mar 14 Net Asset Value Per 10.96 11.26 Share ($) Slide 21 FLEET DEVELOPMENT - SIA No. of Aircraft Operating Fleet at 30 September 1

  12. Slide 12: Fleet Development - SilkAir and Scoot

    FLEET DEVELOPMENT - SLK No. of Aircraft Operating Fleet at 30 September 14 26 IN: Delivery of B737-800 + 3 OUT: Decommissioned A320-200 - 1 Decommissioned A319-100 - 1 Operating Fleet at 31 March 15 27 Slide 23 FLEET DEVELOPMENT - SCOOT No. of Aircraft Operating Fleet at 30 September 14 6 IN: Delive

  13. Slide 13: Group Capital Expenditure and Fuel Hedging Position

    GROUP CAPITAL EXPENDITURE FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 Aircraft 2,750 2,900 4,150 4,200 3,800 Other Assets 200 200 150 100 100 Total 2,950 3,100 4,300 4,300 3,900 Slide 25 GROUP FUEL HEDGING POSITION For the period Jet Fuel Brent Oct 14 to Mar 15 Percentage hedged 65.3 0.8 (%) Average hed

  14. Slide 14: Business Outlook for FY2014/15

    BUSINESS OUTLOOK FOR FY2014/15 OUTLOOK  Intense competition  Geopolitical factors  Economic risks Slide 28 14

  15. Slide 15: Meeting the Challenges

    MEETING THE CHALLENGES CHALLENGES FSC Network Competition Service Product LCC Group Competition Portfolio Geography Additional Hubs Slide 30 15

  16. Slide 16: Network Connectivity: SilkAir, Air New Zealand, Turkish

    NETWORK CONNECTIVITY  SilkAir  Projected capacity growth of 7% for FY14-15 over FY13-14  New destinations & frequency increase for existing destinations  4 new destinations: Kalibo, Mandalay, Hangzhou, Bali Slide 31 NETWORK CONNECTIVITY Air New Zealand  SQ – NZ alliance to launch on 6 Jan 2015

  17. Slide 17: Network Connectivity and FFP Development

    NETWORK CONNECTIVITY Codesharing enables SQ to expand its network via inorganic growth SQ Codeshare on SQ Operations Partner Carriers As at Sep14 Destinations 63 208 Weekly flight segments 1,594 6,514 Slide 33 FFP DEVELOPMENT  SIA – Virgin Australia announced World’s First Loyalty Programme Convers

  18. Slide 18: FFP Development and Branding Initiatives

    FFP DEVELOPMENT  KrisFlyer Spree − Launched 19 Jun 2014 − Online platform where members can earn miles when they shop − Attract new KF members and increase engagement and benefits to existing ones  Pay with KrisFlyer Miles − Members are able to use miles to pay for all or part of their commercial

  19. Slide 19: SIA Group Portfolio: Positioning

    SIA GROUP PORTFOLIO The Group’s portfolio of brands extends its market reach Full Service Extend Positioning Market Reach LCC Regional Long-Haul Markets Slide 37 SIA GROUP PORTFOLIO Gaining Travellers' Mindshare Slide 38 19

  20. Slide 20: SIA Group Portfolio: LCC Growth and Platform

    SIA GROUP PORTFOLIO LCC participation as an engine of growth  Strong LCC growth in Asia Pacific 5-year CAGR* Asia Pacific (2009 – 2013) Full Service Carriers +6% Low Cost Carriers +18%  Further growth potential Market Share* of LCCs Region (January –August 2014) Europe 42% United States 31% Asia P

  21. Slide 21: Tiger Airways

    TIGER AIRWAYS Tiger Airways is entering a rebuilding phase  Unprofitable overseas subsidiaries have been disposed of  Capacity overhang has been addressed  Refocus on Singapore operations  Commercial cooperation with Scoot - with ATI - will bring clear benefits to both Tiger Airways and Scoot Sl

  22. Slide 22: Scoot and NokScoot Joint Venture

    SCOOT  Passed 3 million passenger milestone in Jul 2014  Commence renewal of fleet from end of 2014 with first delivery of B787  13 destinations in eight countries or territories Slide 43 NOKSCOOT JOINT VENTURE  LCC based in Don Mueang International Airport, Bangkok  Second home market for Scoo

  23. Slide 23: Tata-SIA Joint Venture and New Venture

    TATA-SIA JOINT VENTURE  FSC based in New Delhi, India  Tap into the large Indian market  Fleet of 20 A320s  Milestones: − No-Objection Certificate granted on 02 Apr 2014 − Brand Launch on 11 Aug 2014 − Arrival of livery-painted Aircraft on 15 Oct 2014 − Next: Air Operator’s Permit Slide 45 NEW V

  24. Slide 24: Thank You

    Thank You SINGAPORE AIRLINES 24

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