Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — FY2023/24 Earnings Presentation
48 slides from Singapore Airlines's earnings presentation, May 16, 2024
Slide 1: SIA Group Analyst/Media Briefing FY23/24 Results
SIA Group Analyst/Media Briefing FY23/24 Results (Ended 31 March 2024) 16 May 2024 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 sourc
Slide 2: Presentation by Chief Financial Officer Ms. Tan JoAnn
PRESENTATION BY: Chief Financial Officer Ms. Tan JoAnn 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
Slide 3: Group Financial Results Key Highlights
Group Financial Results Key Highlights FY23/24 Highest ever operating profit of $2,727.5 million, exceeding the previous record of $2,692.1 million set last year Passenger revenue rose $2,319.0 million due to increased capacity and sustained strong passenger demand Cargo revenue fell $1,485.2 mi
Slide 4: Group Operating Statistics
Group Operating Statistics The Group expects to reach pre-pandemic passenger capacity levels within FY24/25 ASK CTK Overall CTK FY23/24 (YoY) FY23/24 (YoY) FY23/24 (YoY) +22.9% +7.0% +16.0% 2H (YoY) 2H (YoY) 2H (YoY) +17.7% +5.2% +12.6% Pax Capacity - ASK (million) Cargo Capacity - CTK (million) Ove
Slide 5: Group Financial Results
Group Financial Results Better/ Better/ 2H 2H Better/ Better/ FY23/24 FY22/23 (Worse) (Worse) FY23/24 FY22/23 (Worse) (Worse) ($’M) ($’M) ($’M) (%) ($’M) ($’M) ($’M) (%) Total Revenue 19,012.7 17,774.8 1,237.9 7.0 9,850.3 9,358.3 492.0 5.3 Total Expenditure 16,285.2 15,082.7 (1,202.5) (8.0) 8,676.6
Slide 6: Group Revenue
Group Revenue Record Group revenue for the FY on the back of robust passenger performance, partially offset by lower cargo contribution Group Revenue ($'M) Strong rebound in pax Record traffic, growth led by North Quarterly Asia following full border re- Full opening for China, Japan, Revenue FY23/2
Slide 7: Group Operating Statistics - Passenger
Group Operating Statistics - Passenger Record load factor for the FY even as capacity nears pre-pandemic levels FY23/24 RASK: 9.6¢/ask RASK PLF (%) Record PLF: 88.0% Record (₵/ask) 100 Quarterly 2H FY23/24 Group RASK Record Q4 FY23/24 RASK: 9.6¢/ask 12 10.6 Quarterly RASK: 9.3¢/ask PLF: 87.3% Group
Slide 8: SIA and Scoot Operating Statistics - Passenger
SIA and Scoot Operating Statistics - Passenger Both airlines achieved record load factors for the FY FY23/24 FSC: SIA Operating Statistics FY23/24 LCC: Scoot Operating Statistics RASK: 10.6¢/ask RASK: 6.3¢/ask Record PLF: 87.1% Record PLF: 91.2% 2H FY23/24 2H FY23/24 RASK: 10.5¢/ask RASK: 6.5¢/ask P
Slide 9: Group Operating Statistics - Cargo
Group Operating Statistics - Cargo Cargo load factors rose but yields continued to moderate, albeit at slower pace CLF (%) Cargo Yield FY23/24 (₵/ltk) Yield: 39.6¢/ltk 100 CLF: 54.5% 80 90 2H FY23/24 70 Yield: 37.7¢/ltk 80 CLF: 56.3% Q4 FY23/24 60 70 Yield: 35.2¢/ltk CLF: 57.1% 50 FY19/20 CLF 60 (59
Slide 10: Group Expenditure
Group Expenditure Relative to 16% y-o-y capacity growth, total expenditure was up 8% y-o-y, with net fuel cost down 2.5% and non- fuel expenditure up 13.5% Group Expenditure ($'M) 4,472.9 4,091.4 4,203.7 3,810.3 3,883.7 3,809.2 3,724.9 FY23/24 3,371.8 $16,285.2M 3,019.1 2,387.1 2,758.3 2,864.0 YoY 2
Slide 11: Group Expenditure
Group Expenditure Rise in non-fuel expenditure was lower than the increase in capacity Depreciation & Leased Landing, Parking & Handling Charges Aircraft Charges Overflying Charges $1,195.3M $2,106.2M $811.5M (+$243.8M, +25.6%) (+$77.6M, +3.8%) Staff Costs (+$154.3M, +23.5%) $3,551.3M (+$495.5M, +16
Slide 12: Net Fuel Cost and Fuel Hedging
Net Fuel Cost and Fuel Hedging Decrease in net fuel cost largely driven by lower fuel prices and weakening of USD against SGD, partially offset by higher uplift and lower hedging gain Group Fuel Cost Analysis ($'M) +917.6 -1,280.5 5,209.4 +358.0 -127.9 5,076.6 -$132.8M Higher (-2.5%) uplift Weakenin
Slide 13: Fuel Hedging Status
Fuel Hedging Status Hedges in place up to Q3 FY25/26, with additional gains locked in from closed-out trades Fuel Hedging Position Percentage Average (as of 1 May 2024) Hedged Hedged Price (%) (USD/BBL) Brent MOPS Brent MOPS 1H FY24/25 17 18 76 93 2H FY24/25 16 3 75 94 1H FY25/26 7 - 75 - Q3
Slide 14: Group Operating Profit
Group Operating Profit Record Group Operating Profit in FY23/24 Group Operating Profit ($'M) Record Quarterly Op Profit FY23/24 799.3 Record Op. Profit 755.0 754.5 702.7 $2,727.5M 678.0 556.4 609.0 564.7 YoY $35.4M (+1.3%) 2H (YoY) $284.0M (-19.5%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY22/23 FY22/23 FY22/23 FY2
Slide 15: Group Operating Profit (YoY progression)
Group Operating Profit (YoY progression) Higher pax flown revenue, lower net fuel cost and favourable FX movement, partially offset by lower cargo revenue and increases in various non-fuel expenditure items Group Operating Profit ($'M) Lower cargo +2,319.0 revenue Largely: • Foreign exchange gain ag
Slide 16: Operating Results for the Main Companies of the Group
Operating Results for the Main Companies of the Group Record FSC Operating Profit in FY23/24 Better/ Better/ 2H 2H Better/ Better/ FY23/24 FY22/23 (Worse) (Worse) FY23/24 FY22/23 (Worse) (Worse) ($’M) ($’M) ($’M) (%) ($’M) ($’M) ($’M) (%) Full-service carrier 2,635.2 2,601.2 34.0 1.3 1,123.0 1,292.8
Slide 17: Group Net Profit
Group Net Profit Record Group Net Profit in FY23/24 Group Net Profit ($'M) Record Quarterly Net Profit FY23/24 734.0 707.1 Record Net Profit 658.7 628.0 601.9 $2,674.8M 556.5 575.0 YoY $518.0M 370.4 (+24.0%) 2H (YoY) $3.8M (+0.3%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY22/23 FY22/23 FY22/23 FY22/23 FY23/24 FY23/
Slide 18: Group Net Profit (YoY progression)
Group Net Profit (YoY progression) YoY improvement driven by higher operating profit, net interest income against net finance charges last year, share of profits of associated companies against losses last year and lower tax expense Group Net Profit ($'M) +32.7 +131.5 2,674.8 +103.9 Others +214.5 Lo
Slide 19: Group Financial Results
Group Financial Results FY23/24 FY22/23 Earnings Per Share (cents) - Basic R1 63.3 35.6 - Adjusted Basic R2 90.0 72.6 - Diluted R3 61.4 35.1 EBITDA ($’M) R4 5,647.9 5,137.2 EBITDA margin (%) R5 29.7 28.9 Dividend Per Share (cents) - Interim 10.0 10.0 - Final (Proposed) 38.0 28.0 Dividend cover (time
Slide 20: Group Financial Position
Group Financial Position As at 31 March 2024 As at 31 March 2023 Total assets ($’M) 44,264.7 49,101.2 Total debt ($’M) 13,448.0 15,339.3 Total cash and bank balances ($’M) 11,268.8 16,327.6 Total liabilities ($’M) 27,520.1 28,851.4 Equity attributable to Owners of the Company ($’M) 16,337.9 19,858.3
Slide 21: Redemption of Mandatory Convertible Bonds (MCBs)
Redemption of Mandatory Convertible Bonds (MCBs) Full redemption of the remaining 25% of MCBs (issued in June 2021) on 24 June 2024 FY23/24 FY23/24 Proforma After Redemption Earnings Per Share (cents) - Basic R1 63.3 73.6 - Adjusted Basic R2 90.0 No change - Diluted R3 61.4 71.0 Principal EBITDA ($
Slide 22: Group Operating Fleet Development
Group Operating Fleet Development The Group’s operating fleet is expected to expand by 9 aircraft to 209 by the end of FY24/25 Operating Fleet As at 31 March 2024 In Out As at 31 March 2025 SIA 777-300ER 22 22 A380-800 12 12 A350-900 63 +2R1 65 787-10 22 +4R1 26 737-800 NG 7 -3R2 4 737-8 16 +2R1 18
Slide 23: Projected Group Capital Expenditure
Projected Group Capital Expenditure Projected Capital Expenditure FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 ($’M) Aircraft 2,500 4,200 3,800 3,300 2,700 Others 500 300 400 200 200 Total 3,000 4,500 4,200 3,500 2,900 Slide 23 The copyright in this material (other than in respect of information from ext
Slide 24: Presentation by Chief Executive Officer Mr. Goh Choon Phong
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 25: Emerging Stronger Well Positioned for the Future
1 Emerging Stronger 2 Well Positioned for the Future Slide 25 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 26: Emerging Stronger
Emerging Stronger Slide 26 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, distr
Slide 27: Emerging Stronger: First Off the Blocks, Lead the New World
Emerging Stronger First Off the Blocks Lead the New World Slide 27 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 materia
Slide 28: First Off the Blocks
First Off the Blocks We continue to reap the benefits of our efforts over the past three years 102% 100% 98% 93% 93% 90% 90% 91% 92% 92% +14% pts Even as 88% 88% 90% 86% competitors 87% 84% recover post- 80% +22% pts 79% 81% 79% pandemic, we 75% 75% 77% 77% retain our first-mover 70% 71% 68% 60% 64%
Slide 29: Lead the New World: FY2022/23 Results
Lead the New World Looking back at rewarding year with record FY 2022/23 results Passenger Load Factor 85.4% Revenue $17,774.8M Operating Profit $2,692.1M Net Profit $2,156.8M Slide 29 The copyright in this material (other than in respect of information from external sources) is owned by Singapore A
Slide 30: Lead the New World: Continuing to Break Records in FY2023/24
Lead the New World Continuing to break records in FY2023/24 88.0% $19,012.7M Passenger Revenue Load Factor +2.6%pt 85.4% +$1,237.9M $17,774.8M $2,727.5M $2,674.8M Operating Net Profit Profit +$35.4M $2,692.1M +$518.0M $2,156.8M Slide 30 The copyright in this material (other than in respect of inform
Slide 31: Lead the New World: Affirmation for Our Successes
Lead the New World Affirmation for our successes both within and outside the organisation From FY2022/23 to FY2023/24… Customer Net Promoter Satisfaction +19% Score +5% Score Within the organisation… feels that the organisation are proud1 to work 77% puts effort in fostering a 96% culture of inn
Slide 32: Giving Back to Our Shareholders
Lead the New World Giving back to our shareholders on the back of strong support Full redemption of S$9.7B Mandatory Convertible Bonds Attractive dividend yield in FY2022/23 and FY2023/24 4.0% 6.6% Based on share price as at 31 March 2023 7.5% Yield to call Based on share price as at 31 March 2024 G
Slide 33: Public and Industry Affirmation of Our Successes
Lead the New World Public and industry affirmation of our successes From customers From industry and business professionals As an employer 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 h
Slide 34: Well Positioned for the Future
Well Positioned for the Future Slide 34 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: Headwinds
Headwinds Intensifying competition Increasing costs Supply chain challenges All images generated by JARVIS Climate change Geopolitical tensions (propose prompts for visuals) & DALL-E (graphic generation). Slide 35 The copyright in this material (other than in respect of information from external sou
Slide 36: Well Positioned for the Future: Brand Promise
Well Positioned for the Future The three pillars of our Brand Promise Service Excellence Product Leadership Network Connectivity Award-winning cabin crew providing warm and Cabin upgrades for 737-8 and A380 retrofit during the Strengthening connectivity to Europe with the pandemic, leading the
Slide 37: Group Portfolio Strategy
Well Positioned for the Future Group portfolio strategy Render of Scoot’s Embraer E120-E9 aircraft Today Leading LCC in Asia 9 Embraer regional jets delivering from Apr2024 to 25 July 2017 expand regional secondary and Merger of Tiger tertiary markets. Airways and Scoot 5 June 2012 Scoot becomes
Slide 38: Partnerships: 35 Codeshare Partners
Well Positioned for the Future Partnerships Enhancing connectivity to bring our customers anywhere in the world 35 codeshare partners Over 260 additional destinations Slide 38 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines L
Slide 39: Partnerships
Well Positioned for the Future Partnerships Enhancing connectivity to bring our customers anywhere in the world Slide 39 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 verifi
Slide 40: Multi-hub Strategy
Well Positioned for the Future Multi-hub strategy Our direct participation in India’s growth was announced in 2013 Air India and Vistara merger 2024 onwards First Vistara International Flight 6 August 2019 Launch of Vistara Airlines Incorporation of TATA 9 January 2015 SIA Airlines Limited Inaugur
Slide 41: Creating Opportunities to Grow Revenue Beyond Flying
Well Positioned for the Future Creating opportunities to grow our revenue beyond flying New Revenue August 2019: November 2020: E-commerce platform beyond Training programmes inflight duty free for businesses Core Revenue October 2020: June 2021: Lifestyle rewards app Travel experiences platform Oct
Slide 42: KrisFlyer Lifestyle Rewards Programme
Well Positioned for the Future Creating opportunities to grow our revenue beyond flying From an airline frequent flyer programme to a leading lifestyle rewards programme 8.8M KrisFlyer >S$1.2B revenue Regional members as of 31 in FY2023/24 expansion across March 2024 APAC +20% vs +31% YoY FY2022/23
Slide 43: Sustainability
Well Positioned for the Future Sustainability Net Zero by 2050 Corporate Social Responsibility SIA Group has given a clear signal to the industry with a Building on our long-standing commitment to give 5% SAF target by 2030 back to the communities we serve Offtake agreement of 1,000T of neat S
Slide 44: Financial Strength
Well Positioned for the Future Financial strength Strong Liquidity Strong Balance Sheet $11.3B $2.9B 0.82 Cash balance as at 31 Committed lines of Debt/Equity in FY2023/24 March 2024 credit, all untapped as at 31 March 2024 Retain our financial strength to support long-term growth Slide 44 The copyr
Slide 45: Digital Capabilities
Well Positioned for the Future Digital capabilities Leading technology capabilities Scaling responsible AI in enterprise with Gen AI blueprint and state of the art technology Pioneering the seamless integration of cutting-edge Gen AI technology across the company with 140+use cases identified, a
Slide 46: Our People Are Our Greatest Asset
Well Positioned for the Future Our people are our greatest asset Investing in our people Commitment to our continuous Leadership talks with distinguished Education modules for all staff related transformation guests digital technology and sustainability We remain innovative and agile in the face of
Slide 47: We Are Well Positioned for the Future
We are well positioned for the future Portfolio and Partnerships Multi-hub New Revenue Brand Promise Sustainability Financial Strength Digital Capabilities Talented People Slide 47 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airli
Slide 48: 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