Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — H1 FY2022/23 Earnings Presentation
42 slides from Singapore Airlines's earnings presentation, Nov 7, 2022
Slide 1: SIA Group Analyst / Media Briefing 1H FY22/23 Results
SIA Group Analyst / Media Briefing 1H FY22/23 Results (Ended 30 September 2022) 7 November 2022 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 e
Slide 2: Presentation by Executive Vice President Finance & Strategy
PRESENTATION BY: Executive Vice President Finance & Strategy Mr. Tan Kai Ping 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. T
Slide 3: Record-breaking 1H and Q2 FY22/23 for the SIA Group
Record-breaking 1H and Q2 FY22/23 for the SIA Group Strong travel rebound and the Group’s proactive initiatives culminated in five record highs 1 Record half-yearly Group operating profit : $1,234 million 2 Record quarterly Group operating profit : $678 million 3 Record quarterly Group PLF : 86.6% 4
Slide 4: Group Financial Results: Key Takeaways
Group Financial Results Key Takeaways – 1H and Q2 FY22/23 Results 1H FY22/23 : Record operating profit of $1,234 million, a reversal of $1,854 million from last year Passenger revenue rose $5.2 billion on the back of an 11-fold growth in traffic year-on-year Cargo flown revenue grew $224 million
Slide 5: Group Operating Statistics
Group Operating Statistics Calibrated capacity recovery continued, riding on strong recovery momentum ASK 1H YoY +118.7% Q2 QoQ +11.3% Overall CTK 1H YoY +73.0% Q2 QoQ +11.2% Slide 5 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Air
Slide 6: Group Financial Results
Group Financial Results 1H 1H Better/ Better/ Q2 Q1 Better/ Better/ FY22/23 FY21/22 (Worse) (Worse) FY22/23 FY22/23 (Worse) (Worse) ($’M) ($’M) ($’M) (%) ($’M) ($’M) ($’M) (%) Total Revenue 8,416.5 2,826.9 5,589.6 197.7 4,488.3 3,928.2 560.1 14.3 Total Expenditure 7,182.1 3,446.3 (3,735.8) (108.4) 3
Slide 7: Revenue
Group Revenue Record quarterly revenue in Q2 led by strong improvement in passenger flown revenue 1H FY22/23 $8,416.5M YoY $5,589.6M (+197.7%) QoQ $560.1M (+14.3%) ^ VTLs refers to Vaccinated Travel Lanes. Singapore launched its first VTL arrangement in September 2021. Slide 7 The copyright in this
Slide 8: Operating Statistics - Passenger
Group Operating Statistics - Passenger Strong travel demand across all route regions except East Asia where restrictions remained for some key markets Slide 8 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Air
Slide 9: Operating Statistics - Cargo
Group Operating Statistics - Cargo Lower loads and yields in Q2 QoQ as air freight demand began to soften and competition intensified Slide 9 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
Slide 10: Expenditure
Group Expenditure Group expenditure increased on expansion of operations 1H FY22/23 $7,182.1M YoY $3,735.8M (+108.4%) QoQ $438.5M (+13.0%) Slide 10 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd h
Slide 11: Expenditure
Group Expenditure 1H Group expenditure increased 108% YoY on expansion of operations Slide 11 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 ext
Slide 12: Net Fuel Cost
Net Fuel Cost YoY increase driven by a 93% increase in fuel prices and higher uplift, partially offset by higher hedging gains 1H FY21/22 1H FY22/23 Fuel price (before hedging) (USD/BBL) 77.03 148.53 Fuel price (after hedging) (USD/BBL) 72.42 128.69 Slide 12 The copyright in this material (other tha
Slide 13: Fuel Hedging
Fuel Hedging Group has hedges in place up to end of FY23/24, with additional gains locked in from closed-out trades Singapore Jet Kerosene Monthly Average Fuel Hedging Position Percentage Average Settlement Prices (USD/BBL) (as at 31 Oct 2022) Hedged Hedged Price (%) for Brent 164.29 (USD/BBL) Q3 FY
Slide 14: Operating Performance
Group Operating Performance Strong operating performance in Q1 accelerated into Q2; record half year and quarterly operating profit 1H FY22/23 $1,234.4M YoY $1,853.8M (n.m.) QoQ $121.6M (+21.9%) Slide 14 The copyright in this material (other than in respect of information from external sources) is o
Slide 15: Operating Performance (YoY Progression)
Group Operating Performance (YoY Progression) Reversal from operating loss to operating profit driven by strong improvement in revenue Slide 15 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has n
Slide 16: Operating Results for the Main Companies of the Group
Operating Results for the Main Companies of the Group 1H 1H Better/ Better/ Q2 Q1 Better/ Better/ FY22/23 FY21/22 (Worse) (Worse) FY22/23 FY22/23 (Worse) (Worse) ($’M) ($’M) $M (%) ($’M) ($’M) $M (%) Full-service carrier 1,308.4 (386.5) 1,694.9 n.m. 684.1 624.3 59.8 9.6 Low-cost carrier (40.2) (217.
Slide 17: Net Performance
Group Net Performance QoQ increase driven by better operating performance, lower net finance charges and improvement in share of results from joint ventures and associated companies, partially offset by higher tax expense 1H FY22/23 $926.9M YoY $1,763.7M (n.m.) QoQ $186.1M (+50.2%) Slide 17 The copy
Slide 18: Net Performance (YoY Progression)
Group Net Performance (YoY Progression) Reversal from net loss to net profit YoY largely driven by better operating performance, partially offset by tax expense vs tax credit last year Slide 18 The copyright in this material (other than in respect of information from external sources) is owned by Si
Slide 19: Financial Results: Dividend reinstated
Group Financial Results Dividend payments reinstated with interim dividend of 10 cents per share 1H FY22/23 1H FY21/22 Earnings / (Loss) per share (cents) - Basic R1 14.4 (15.4) - Adjusted Basic R2 31.2 (28.2) - Diluted R3 14.2 (15.4) EBITDA ($ million) R4 2,315.9 236.5 EBITDA margin (%) R5 27.5 8.4
Slide 20: Financial Position
Group Financial Position As at 30 September 2022 As at 31 March 2022 Total assets ($’M) 51,494.8 48,671.0 Total debt ($’M) 15,776.9 15,694.8 Total cash and bank balances ($’M) 17,450.4 13,762.7 Total liabilities ($’M) 27,902.7 25,870.6 Equity attributable to Owners of the Company ($’M) 23,186.8 22,4
Slide 21: Redemption of Mandatory Convertible Bonds (MCBs)
Redemption of Mandatory Convertible Bonds (MCBs) Full redemption of MCBs issued in 2020 at the next semi-annual date of 8 December 2022 1H FY22/23 1H FY22/23 Proforma After Redemption Principal Amount Earnings per share (cents) ($3,496 mil) - Basic R1 14.4 18.0 - Adjusted Basic R2 31.2 no change 110
Slide 22: Fleet Development
Group Fleet Development Net increase of two aircraft in the Group operating fleet by the end of FY22/23 Operating Fleet As at 30 September 2022 In As at 31 March 2023 SIA 777-300ER 23 23 A380-800 12 12 A350-900 61 61R1 787-10 15 +1R2 16 737-800 7 7 737-8 13 +3R3 16 747-400F 7 7 Total 138 +4 142 Scoo
Slide 23: 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 24: Steering through the Pandemic, First Off the Blocks, Strengthening Foundation
1 Steering through the Pandemic 2 First Off the Blocks 3 Strengthening Foundation for the Future 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
Slide 25: Steering through the Pandemic
Steering through the Pandemic 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, di
Slide 26: Steering through the Pandemic: Strong financial position
Steering through the Pandemic We were quick to build a strong financial position 26 Mar 2020: Announced Rights issue to raise up to S$15B in liquidity, underwritten by Temasek Total: S$22.4B May 2020 Nov 2020 New committed LOCs Private notes placement and unsecured loan Raised: $1.3B Raised: $0.5B J
Slide 27: Steering through the Pandemic: Reducing cash outflow
Steering through the Pandemic Immediate actions to reduce cash outflow and continued to engage customers in innovative ways Managing costs Discover your SIA Initiatives 15 sold-out Restaurant A380 sessions with Reduced expenditure more than 3,700 participants Cut all discretionary expenditure from
Slide 28: Steering through the Pandemic: 2nd Transformation Journey
Steering through the Pandemic We commenced on our 2nd Transformation Journey Lead the New World Financial Sustainability Agile and flexible to rebuild our network Build a dynamic & resilient workforce 73% 67% of pre-Covid of pre-Covid >250 initiatives destinations capacity +39% 82% to achieve a comp
Slide 29: First Off the Blocks
First Off the Blocks 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
Slide 30: First Off the Blocks: Innovating for recovery
First Off the Blocks We continued to innovate and proactively gear up for recovery Capturing cargo demand Revamped lounge facilities Operated cargo-only pax flights to supplement fall in belly ~S$50M invested to upgrade our flagship T3 SilverKris hold capacity Lounges and increased its capacity
Slide 31: First Off the Blocks: Capacity ahead of demand
First Off the Blocks We kept our resources operationally-ready and injected capacity ahead of demand 100% 1 Apr’22: 75% Singapore opens border to all vaccinated travellers 8 Sep’21: Vaccinated Travel 50% Lanes introduced 31%pts higher 25% 0% Jan-20 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY20/21 FY21
Slide 32: First Off the Blocks: Capturing pent-up demand
First Off the Blocks We were able to capture pent-up demand when borders reopened Highest quarterly Group pax load factor Highest quarterly Group RASK 10.3cts/ASK achieved in Q2 FY22/23 surpassed the 86.6% achieved in Q2 FY22/23 surpassed the previous high of 10.1cts/pkm achieved in Q3 previous high
Slide 33: First Off the Blocks: Emerging stronger
First Off the Blocks We are emerging stronger MORE RESILIENT MORE INNOVATIVE MORE AGILE Slide 33 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
Slide 34: Strengthening Foundation for the Future
Strengthening Foundation for the Future 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, repr
Slide 35: There are challenges ahead
Strengthening Foundation for the Future There are challenges ahead Other airlines High fuel cost Emergence of new Inflation and War in Ukraine and adding Covid variants looming recession escalating US- international China tensions flights Slide 35 The copyright in this material (other than in respec
Slide 36: Delivering seamless and personalised customer experience
Strengthening Foundation for the Future Delivering seamless and personalised customer experience Industry Leading Products Delivering greater end-to-end Customer Experience and Personalization All operating A380s are fitted with latest cabin products, including the award-winning Suites Customer Insi
Slide 37: Extending network reach through partnerships
Strengthening Foundation for the Future Extending network reach through partnerships, and continue to invest in multi-hub and portfolio strategies Commercial partnerships Multi-hub Strategy Codesharing with 33 partner airlines, connecting to over 200 Investment in Vistara allows us to participate in
Slide 38: Expand KrisFlyer base and pursue new revenue streams
Strengthening Foundation for the Future Expand KrisFlyer base and pursue new revenue streams Support the fast-growing e-commerce segment and reinforce 5.7M KF members reached in Q2 (16.5% YoY growth). Larger Singapore’s position as a key air cargo and e-commerce logistics hub than the population
Slide 39: Investments in Digital capabilities
Strengthening Foundation for the Future Investments in Digital capabilities CORPORATE LAB AT NUS Since Launch in 2018 ... Launched in January 2022 1,786 5-year R&D collaboration with NUS leveraging on their research Digital ideas expertise to co-create commercialise digital solutions to accelerate i
Slide 40: Care for the Environment and the Community
Strengthening Foundation for the Future Care for the Environment and the Community Sustainability Community CSR Day introduced in Jan 2022 as part of our continued efforts to New technology aircraft are up to 30% more fuel efficient promote a community engagement spirit within the Company 6yrs 5mths
Slide 41: Our People are our greatest asset
Strengthening Foundation for the Future Our People are our greatest asset Engaging our People 3 Long Service Award ceremonies held in July Hybrid Chill Out sessions with local and 600 attendees turned up at Bedok Reservoir to and August overseas colleagues keep fit and Run with Choon Phong Inv
Slide 42: 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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