Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — Q3 FY2017-18 Earnings Presentation
20 slides from Singapore Airlines's earnings presentation, February 2018
Slide 1: SIA Group Financial Results Q3 and 9M Ended 31 December 2017
SIA GROUP FINANCIAL RESULTS For 3rd Quarter and 9 Months Ended 31 December 2017 197200078R 1
Slide 2: SIA Group Q3 & 9M FY2017-18
SINGAPORE AIRLINES SIA GROUP Q3 & 9M FY2017-18
Slide 3: Operating Result
SIA GROUP Q3 & 9M FY2017-18 Operating Result Q3 Q3 Better/ 9M 9M Better/ FY17/18 FY16/17 (Worse) FY17/18 FY16/17 (Worse) ($M) ($M) (%) ($M) ($M) (%) Total Revenue 4,076.7 3,846.9 6.0 11,788.8 11,157.6 5.7 Total Expenditure 3,747.3 3,554.0 (5.4) 10,946.0 10,562.4 (3.6) -- Net fuel cost 1,024.7 938.6
Slide 4: Group Revenue
SIA GROUP Q3 & 9M FY2017-18 $M Group Revenue 4,200 4,100 4,076.7 9M FY17/18 4,000 $11,788.8M 3,900 3,864.2 3,846.9 3,847.9 Year-on-Year 3,800 $631.2M 3,710.9 (+5.7%) 3,700 3,657.7 3,653.0 3,600 3,500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY16/17 FY17/18 Slide 4
Slide 5: Group Expenditure
SIA GROUP Q3 & 9M FY2017-18 Group Expenditure $M 3,800 3,747.3 3,683.3 9M FY17/18 3,700 $10,946.0M 3,615.3 3,600 3,583.4 3,543.9 3,554.0 Year-on-Year $383.6M 3,500 3,464.5 (+3.6%) 3,400 3,300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY16/17 FY17/18 Slide 5
Slide 6: Cost Composition
SIA GROUP Q3 FY2017-18 Cost Composition ($M) Depreciation and AMO Costs Lease Rentals 224.2 610.9 Handling Charges (-5.2, -2.3%) (+4.5, +0.7%) 336.4 (+33.8, +11.2%) LPO* Charges 6.0% 16.3% 217.3 9.0% (+7.2, +3.4%) Staff Cost 5.8% 670.6 17.9% Passenger Costs 4.8% (+36.2, +5.7%) 179.2 (-1.4, -0.8%) 12
Slide 7: Composition of Increase in Fuel Cost
SIA GROUP Q3 FY2017-18 Composition of Increase in Fuel Cost $M (After Hedging) Higher 1,200 weighted Hedging average fuel gain price versus +183.2 loss Higher uplift 1,100 +20.6 1,024.7 -86.2 -31.5 1,000 Weaker +86.1 938.6 USD (+9.2%) against SGD 900 800 Q3 FY16/17 Price Hedging Volume Exchange Q3 F
Slide 8: Group Operating Profit
SIA GROUP Q3 & 9M FY2017-18 Group Operating Profit $M % 400 10 8.1 9M FY17/18 329.4 7.6 7.3 8 Op. Profit 292.9 300 280.8 $842.8M 6.0 +$247.6M 5.3 232.6 6 (+41.6%) 193.2 200 3.0 4 Operating 109.1 100 Profit Margin 0.7 2 1.8% pts 27.6 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY16/17 FY17/18 Slide 8
Slide 9: Composition of Increase in Operating Profit
SIA GROUP Q3 FY2017-18 Composition of Increase in Operating Profit $M 550 Higher net fuel +215.7 costs 500 Higher 450 staff cost 127.4 Higher Higher -86.1 depreciation handling 400 charges Higher -36.2 comm & incentives 350 -30.0 +2.8 329.4 +25.5 -33.8 88.3 Lower -21.4 +36.5 292.9 rentals (+12.5%) 3
Slide 10: Group Operating Profit by Company
SIA GROUP Q3 FY2017-18 Group Operating Profit Q3 Q3 Better/ Better/ FY17/18 FY16/17 (Worse) (Worse) ($M) ($M) ($M) (%) SIA 154.8 151.2 3.6 2.4 SIAEC Group 18.2 25.2 (7.0) (27.8) SIA Cargo 88.2 53.6 34.6 64.6 SilkAir 18.7 29.7 (11.0) (37.0) Scoot 43.2 28.5 14.7 51.6 Others 6.3 4.7 1.6 34.0 Group Tota
Slide 11: Group Net Profit
SIA GROUP Q3 & 9M FY2017-18 Group Net Profit $M 400 300 286.1 256.6 235.1 9M FY17/18 200 177.2 189.9 Net Profit $711.1M 100 $212.4M 64.9 (+42.6%) 0 -100 -138.3 -200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY16/17 FY17/18 Slide 11
Slide 12: Group Profit Attributable to Owners of the Parent
SIA GROUP Q3 FY2017-18 Group Profit Attributable to Owners of the Parent $M 400 Absence of Net Absence of loss on interest writedown of disposal of expense Tigerair investment Higher against Share of brand and taxation income losses & trademark +6.1 +9.0 last year profits of +79.0 assoc. & 300 +0.7
Slide 13: Parent Airline Company
PARENT AIRLINE COMPANY Q3 & 9M FY2017-18
Slide 14: Parent Airline Company Operating Statistics
PARENT AIRLINE COMPANY Q3 & 9M FY2017-18 Q3 9M FY17/18 Change FY17/18 Change % % Available Seat-KM (M) 30,042.6 1.0 89,052.3 0.3 Revenue Passenger-KM (M) 24,513.1 4.4 72,267.9 3.8 Passenger Load Factor (%) 81.6 2.6 pts 81.2 2.8 pts Pax Yield (¢/pkm) 10.4 (1.0) 10.2 (1.9) Revenue per available seat-k
Slide 15: Monthly Pax Yields
PARENT AIRLINE COMPANY Q3 & 9M FY2017-18 Monthly Pax Yields 11.5 ¢/pkm 2015-16 2016-17 2017-18 11.2 11.1 11.0 11.0 10.8 10.8 10.7 10.7 10.7 10.7 10.7 10.6 10.5 10.5 10.5 10.4 10.4 10.3 10.6 10.3 10.3 10.2 10.4 10.2 10.3 10.2 10.2 10.2 10.1 10.1 10.1 10.0 9.8 9.8 9.5 Apr May Jun Jul Aug Sep Oct Nov D
Slide 16: Parent Airline Company Operating Result
PARENT AIRLINE COMPANY Q3 & 9M FY2017-18 Operating Result Q3 Q3 Better/ 9M 9M Better/ FY17/18 FY16/17 (Worse) FY17/18 FY16/17 (Worse) ($M) ($M) (%) ($M) ($M) (%) Total Revenue 2,925.9 2,817.7 3.8 8,650.0 8,381.3 3.2 Total Expenditure 2,771.1 2,666.5 (3.9) 8,084.4 7,954.1 (1.6) -- Net fuel cost 777.8
Slide 17: Cost Composition
PARENT AIRLINE COMPANY Q3 FY2017-18 Cost Composition ($M) Staff Cost Handling Charges 434.9 AMO Costs 242.0 (+34.3, +8.6%) 179.0 (+13.6, +6.0%) (-16.4, -8.4%) LPO* Charges 161.0 (+7.3, +4.7%) 15.7% 8.7% 6.5% Aircraft depreciation and Lease Rentals 5.8% 451.7 Passenger Costs 16.3% (-10.5, -2.3%) 163.
Slide 18: Passenger Unit Cost
PARENT AIRLINE COMPANY Q3 FY2017-18 ¢/ask Passenger Unit Cost 10 8.1 8.4 8 Unit Fuel 2.59 (+7.5%) 2.41 Cost 6 Unit Staff 1.45 (+7.4%) 1.35 Cost 4 Unit Other 4.39 Cost 4.34 (-1.1%) 2 0 Q3 FY16/17 Q3 FY17/18 Slide 18
Slide 19: Fuel Hedging Update
FUEL HEDGING UPDATE Q4 FY17/18 Jet Fuel Brent Percentage hedged (%) 40.7 - Average hedged price (USD/BBL) 65 - Maturities Up To FY22/23 Jet Fuel Brent Percentage hedged (%) - Up to 47% Average hedged price (USD/BBL) - 53-59 Slide 19
Slide 20: Thank You
Singapore Airlines — Q3 FY2017-18 Earnings Presentation on 6ix