Analyst Briefing Singapore Airline FY 2015-2016

7/25/2019 Analyst Briefing Singapore Airline FY 2015-2016

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SIA ANALYST/MEDIA BRIEFINGQ2 & H1 FY2015/16 Results

6 November 2015

THE PARENT AIRLINEQ2 & H1 FY2015/16

RESULTS



THE PARENT AIRLINE COMPANYOPERATING PERFORMANCE – FY2015/16

Passenger LoadFactor (%)

Revenue Pax-KM(million)

Available Seat-KM(million)

Slide 3

83.7

25,177

30,082

+1.8 pts

+0.6

-1.6

Q2 15/16

%

Change

80.0

47,691

59,602

+0.2 pts

-1.7

-2.0

H1 15/16

%

Change

THE PARENT AIRLINE COMPANY

OPERATING PERFORMANCE – FY2015/16

Passenger Yield

(¢/pkm)

Slide 4

10.4 -4.6

Q2 15/16

%

Change

10.5 -3.7

H1 15/16

%

Change



10.810.9

11.111.2

10.8

11.3

11.1 11.1

11.3

10.9

11.1

11.3

10.7

10.9

10.7

11.2

11.511.4 11.4 11.411.4

11.5

10.7

10.510.4

10.1

10.6

¢/pkm

10

11

12

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

FY13/14 FY14/15 FY15/16

THE PARENT AIRLINE COMPANYOPERATING PERFORMANCE – FY2015/16

Monthly Pax Yields (Including Fuel Surcharge)

Slide 5


OPERATING PERFORMANCE – FY2015/16

Passenger Breakeven

Load Factor (%)

Passenger Unit Ex-

Fuel Cost(¢/ask)

Passenger Unit Cost

(¢/ask)

Slide 6

83.7

5.5

8.7

+1.1 pts

+7.8

-3.3

Q2 15/16

%

Change

81.9

5.3

8.6

+1.2 pts

+6.0

-2.3

H1 15/16

%

Change

Passenger Yield

(¢/pkm)

10.4 -4.6 10.5 -3.7



81.980.7

82.7

78.079.8

%

79.6 79.8

75.4

79.6 80.0

77.5

60

65

70

75

80

85

90

H1 11/12 H1 12/13 H1 13/14 H1 14/15 H1 15/16

-0.2-3.1

-0.9 -1.9

-0.5

THE PARENT AIRLINE COMPANYOPERATING PERFORMANCE

Passenger Load Factor

Breakeven Load Factor

Slide 7


RESULTS – FY2015/16

Slide 8

98Operating Profit (40)

2,900Total Expenditure

717 Fuel Cost

245 Fuel Hedging Loss

1,938 - Ex-fuel Cost

185

458

(226)

(47)

2,998Total Revenue

Q2 15/16

$million

(225)

Better/

(Worse)

$million

3.3Operating Profit Margin(%)

(1.0) pts

- Net Fuel Cost 962 232

23206

3475,701

(324)5,907

H1 15/16

$million

853 1,500

(466) 456

(40) 3,745

Better/

(Worse)

$million

0.6 pts3.5

387 1,956



Fuel Cost Post Hedging1,956.0 (-387.1, -16.5%)

Others585.3 (-15.4, -2.6%)

Aircraft Depreciation & Lease Rentals943.6 (+35.8, +3.9%)

Handling Charges443.8 (+3.5, +0.8%)

Passenger Costs336.7 (-7.9, -2.3%)

Staff777.6

(-0.2, N.A.)

AMO Costs367.0 (+39.7, +12.1%)

LPO* Charges291.1 (-15.3, -5.0%)

*Landing, Parking and Overflying

THE PARENT AIRLINE COMPANYCOST COMPOSITION – H1 FY2015/16 ($M)

Slide 9

($ million) (USD/BBL)

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16

90

136

130

133133

122

102

74

77

67

94

98

115

135

132 134

123 121

10398

90

119

99

400

600

800

1,000

1,200

1,400

1,600

1,800

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

1 , 0 4 3

9

2 4

8 9

9

1 , 2 0 5

1 , 1 7 9

9 9 4

1 , 0 1 1

1 , 1 8 2

1 , 1 9 4

9 6 2

1 , 2 6 8

Fuel Cost after hedgingFuel Price before hedging

Fuel Price after hedging


FUEL PRICE AND EXPENDITURE - TREND

Slide 10



2,343

1,500

2,000

2,500

H1FY14/15

$M

1,956

H1FY15/16

-965

Price

Lowerweightedaverage

fuel price

-15

Volume

Lowervolumeuplifted

+118

Exchange

StrongerUSD

againstSGD

+466

Hedging

Hedgingloss vs

gain last year +9

Others

Others -387(-16.5%)

THE PARENT AIRLINE COMPANYFUEL EXPENDITURE – H1 FY2015/16

Slide 11

¢/ask

0

2

4

6

8

10

H1 FY14/15 H1 FY15/16

Unit Fuel Cost

Unit Staff Cost

4.03.7

1.31.3

3.8 3.3 (-13.2%)

(+8.1%)

(-)

8.8 8.6


UNIT COST ANALYSIS – H1 FY2015/16

Unit Other Cost

Slide 12



SIA GROUPQ2 & H1 FY2015/16

RESULTS

3,682 3,708

3,905

3,565

3,914

3,677

3,200

3,400

3,600

3,800

4,000

Q1 Q2 Q3 Q4 Q1 Q2

GROUP REVENUE

– FY2015/16

($ million)

Slide 14

H1 15/16Revenue

$7,578M

Year-on-Year

$9M-0.1%

3,845

3,733

FY14/15 FY15/16

Year-on-Year

$345M-4.5%

H1 15/16Revenue

$7,242M3,733

3,845



GROUP EXPENDITURE – FY2015/16

($ million)

Slide 15

H1 15/16Expenditure

$7,338M3,622

3,716

FY14/15 FY15/16

3,454

3,538

3,603

3,7713,773

3,643

3,200

3,400

3,600

3,800

4,000

Q1 Q2 Q3 Q4 Q1 Q2

Year-on-Year

$78M-1.1%

Year-on-Year

$424M-5.7%

H1 15/16Expenditure

$6,992M

3,622

3,716

39

132

105

139143

0

50

100

150

200

Q1 Q2 Q3 Q4 Q1 Q2

GROUP OPERATING PROFIT

– FY2015/16

($ million)

Slide 16

H1 15/16Op Profit

$240M

Year-on-Year$69M+40.4%

FY14/15 FY15/16

129

H1 15/16Op Profit

$250M

Year-on-Year$79M+46.2%

111



11+3748SIA Engineering

23+183206Singapore Airlines

H1 15/16

21+526SilkAir

22+(34)(12)SIA Cargo

H1 14/15 Change

CONTRIBUTION TO GROUP OPERATING PROFIT – FY2015/16 ($ million)

29.7+

12.6+

n.m.+

64.7

% Change

+

Slide 17

22+(44)(22)Scoot 50.0+

GROUP NET PROFIT

– FY2015/16

($ million)

Year-on-Year+$179M+142.1%

Slide 18

368

H1 15/16Net Profit

$305M

168

126

239

282305

0

100

200

300

400

H1FY11/12

H1FY12/13

H1FY13/14

H1FY14/15

H1FY15/16



126

0

100

200

300

400

H1FY14/15

Tax

-49

Expensethis yearvs creditlast year

+98

Dividend

Higherdividendsfrom AIH

+117

Associates

Lowershare oflosses

+1

Others

-57

Disposalof aircraft,spares & spare engines

Loss this year vsgain last

year

+69

OperatingProfit

Higheroperating

profit

305

H1FY15/16

+179(+142.1%)

GROUP PROFIT ATTRIBUTABLE TO OWNERS OFPARENT – H1 FY2015/16

($ million)

Slide 19

Slide 20

5.010.0Interim Dividend PerShare (¢)

1.091.39EBITDAR Per Share ($)

1H 14151H 1516

10.6610.83Net Asset Value PerShare ($)

At 31 Mar 15 At 30 Sep 15

10.726.1Earnings Per Share (¢)

GROUP RESULTS

– 1H FY2015/16



FLEET DEVELOPMENT – SIA

Slide 21

No. of AircraftOperating Fleet as at 30 September 2015 104

IN: Delivery of A350-900s + 3

Entry of A330-300 into service + 1

Entry of 777-300ER into service + 1

Delivery of 777-300ER + 1

OUT: Decommissioned A330-300s - 2

Decommissioned 777-300 - 1

Decommissioned 777-200ER - 1

Operating Fleet as at 31 March 2016 106

FLEET DEVELOPMENT – SLK

Slide 22

No. of Aircraft

Operating Fleet as at 30 September 2015 29

IN: Delivery of 737-800 + 1

OUT: Decommissioned A319-100 - 1




FLEET DEVELOPMENT – SCOOT

Slide 23

No. of AircraftOperating Fleet as at 30 September 2015 8

IN: Delivery of 787-8s + 2

Delivery of 787-9 + 1

OUT: Decommissioned 777-200 - 1


FLEET DEVELOPMENT – TIGER

Slide 24

No. of Aircraft

Operating Fleet as at 30 September 2015 24

OUT: Decommissioned A320 - 1




GROUP CAPITAL EXPENDITURE

FY16/17 FY17/18 FY18/19 FY19/20 FY20/21

Aircraft 3,000 4,300 5,100 5,000 3,900

Other Assets 100 150 150 100 100

Total 3,100 4,450 5,250 5,100 4,000

Slide 25

GROUP FUEL HEDGING POSITION

For the periodOct 15 to Mar 16

Jet Fuel

Percentage hedged(%) 50.7*

Average hedgedprice

(USD/BBL) 93*

Slide 26

*includes Brent contracts which have been rolled over to MOPS.



STRATEGICDEVELOPMENTS

SIA

SERVICE

Slide 28

PRODUCT NETWORK

CEM Cabin Lounge

New Aircraft

Organic Partnerships



PORTFOLIO STRATEGY

Slide 29

P o s i t i o n i n g

Markets

LowCost

FullService

Regional Long-Haul

PORTFOLIO STRATEGY

Slide 30

P o s i t i o n i n g

Markets

LowCost

FullService

Regional Long-Haul

SYNERGIES

SharedServices

Common

FFP

IntegratedNetwork

CrossSelling



Vistara

Currently has 8 Airbus A320s; 9 by Dec 2015

12 cities and 297weekly flights. Up to325 weekly flights byDec 2015

2 new destinations –BBI (1 Oct 2015) & VNS (21 Oct 2015)

Highest on-timeperformance andlowest complaintsamongst all Indiandomestic airlines

MULTI-HUBS

Slide 31

NokScoot

Low cost carrier based in Don Mueang International Airport, Bangkok

Expanding its operation in 2H 2015 –

Nanjing in June (from 4x to 6x weekly),

Taipei in October (4x weekly)

Qingdao in November (4x weekly)

Focused on China in part due to restriction in operating to Korea andJapan

MULTI-HUBS

Slide 32



Airbus Asia Training Centre

A350 simulator entered into service in Oct 2015 – first coursedelivered in Asia Pacific on A350

A320 simulator ordered and due to enter into service in Apr 2016

Relocation to Seletar state-of-the-art facility planned for Mar 2016

Start of operation in the new building planned for 1 Apr 2016

NEW REVENUE/BUSINESS

Slide 33

Thank You

Analyst Briefing Singapore Airline FY 2015-2016

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