FY13-14 Analyst Meeting Complete Final - Singapore Airlines · 2013/14 2012/13 Total Dividend Per...
Transcript of FY13-14 Analyst Meeting Complete Final - Singapore Airlines · 2013/14 2012/13 Total Dividend Per...
ANALYST/MEDIA BRIEFINGANALYST/MEDIA BRIEFINGFY2013FY2013--14 RESULTS14 RESULTS
9 MAY 20149 MAY 2014
THE PARENT AIRLINEFY2013/14
RESULTS
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2013/14
Passenger Load Factor (%)
Revenue Pax-KM (million)
Available Seat-KM (million)
Slide 3
77.0
22,598
29,356
-1.6 pts
-1.8
+0.3
4Q/13%
Change
78.9
95,064
120,503
-0.4 pt
+1.4
+1.9
2013/14%
Change
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2013/14
Passenger Breakeven Load Factor (%)
Passenger Unit Cost(¢/ask)
Passenger Yield(¢/pkm)
Slide 4
82.9
9.2
11.1
-1.0 pt
-2.1
-0.9
4Q/13%
Change
82.0
9.1
11.1
+1.3 pts
-1.1
-2.6
2013/14%
Change
THE PARENT AIRLINE COMPANY RESULTS – FY2013/14
Slide 5
(60)Operating (Loss)/Profit 9
3,008Total Expenditure
1,180- Fuel Cost(23)- Fuel Hedging Gain
1,851- Ex-fuel Cost
60
5334
2,948Total Revenue
4Q/13$million
(51)
Better/(Worse)$million
(2.0)Operating (Loss)/Profit Margin (%)
0.3 pt
69256
(24)12,224
9312,480
2013/14$million
1354,84443(71)(202)7,451
Better/(Worse)$million
0.5 pt2.0
THE PARENT AIRLINE COMPANY - PASSENGER YIELD
Monthly Pax Yields (Including Fuel Surcharge)
Slide 6
¢/pkm
9
10
11
12
13
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
11.211.4
11.611.3 11.3
11.6 11.511.2
11.0
11.411.4 11.3
10.410.2
9.99.7 9.8
10.0
10.4 10.510.7
11.1
11.011.3
2009-10 2012-13
10.8 10.8
11.3
10.911.1 11.2 11.1 11.1
11.3
2013-14
10.9
11.1 11.3
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE
0
64
68
72
76
80
84
09/10 10/11 11/12 12/13 13/14
Passenger Load FactorBreakeven Load Factor(%)
78.5
82.7
74.8
3.7
-4.3
78.478.077.4
-0.6 79.3
80.7-1.4
Slide 7
78.9
82.0-3.1
THE PARENT AIRLINE COMPANY COST COMPOSITION – FY2013/14
Slide 8
Fuel Cost Post Hedging39.0% (-1.6 pts)
Staff12.8% (-0.4 pt)
Aircraft Depreciation & Lease Rentals
14.7% (+0.8 pt)
Handling Charges7.1% (No Change)
Others 20.8% (+0.3 pt)
Aircraft Maintenance and Overhaul Costs
5.6% (+0.9 pt)
861
1,610
4,951
676
871
1,567
1,798
4,773
577
1,698
0 1,000 2,000 3,000 4,000 5,000 6,000
AMO Costs
HandlingCharges
Staff
Aircraft Depr. &Lease Rentals
Fuel AfterHedging
THE PARENT AIRLINE COMPANY TOP 5 EXPENDITURE – FY2013/14
Slide 9
2013-142012-13
(-$178 or -3.6%)
$M
(+100 or +5.9%)
(+99 or +17.2%)
(+10 or +1.2%)
(-43 or -2.7%)
THE PARENT AIRLINE COMPANY FUEL PRICE AND EXPENDITURE - TREND
Slide 10
1Q 2Q 3Q 4Q
2008-09
1,27
7
1,59
5
867 96
0
1,26
8
1,22
7
1,24
4
1,21
2
1,20
6
1,23
6
1,17
4
1,15
6
1,37
7
1,10
0
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0102030405060708090100110120130140150160
124
149160
98
61
64
104
88
146
122 124
120
133132126
132121
124130130
125
134
123
1Q 2Q 3Q 4Q
2009-10
1Q 2Q 3Q 4Q
2010-11
1Q 2Q 3Q 4Q
2011-12
1Q 2Q 3Q 4Q
2012-13
1Q 2Q 3Q 4Q
2013-14
126127126
Fuel Cost after hedging
Fuel Price after hedging
Fuel Price before hedging
Fuel Price After Hedging
THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – FY13/14
Slide 11
4,951
4600
4800
5000
5200
2012-13
4,773
2013-14
-178 (-3.6%)
Price
-218
Lower Weighted Average
Fuel Price
Volume
+23
Higher Volume Uplifted
Exchange
+60
StrongerUSD
Against SGD
Hedging
-43
Higher Hedging
Gain
$M
THE GROUPFY2013/14
RESULTS
GROUP REVENUE – FY2013/14
Half Year Revenue$7,097M
($ million) Full Year Revenue
$15,244M
Year-on-Year$146M+1.0%
12,707
14,52514,858
15,098
0
12,500
13,000
13,500
14,000
14,500
15,000
15,500
16,000
16,500
09/10 10/11 11/12 12/13
Slide 13
15,244
13/14
GROUP EXPENDITURE – FY2013/14
Half Year Revenue$7,097M
($ million) Full Year Expenditure$14,985M
Year-on-Year$116M+0.8%
12,644
13,254
14,57214,869
12,500
13,000
13,500
14,000
14,500
15,000
15,500
16,000
16,500
0
Slide 14
14,985
09/10 10/11 11/12 12/13 13/14
GROUP OPERATING PROFIT – FY2013/14
Half Year Revenue$7,097M
($ million) Full Year Op Profit$259M
Year-on-Year$30M
+13.1%
63
1,271
286 229
0
500
1,000
1,500
2,000
Slide 15
259
09/10 10/11 11/12 12/13 13/14
GROUP OPERATING PROFIT – FY2013/14
Slide 16
($ million)2012/13 2013/14
72 70
131
-44-60
87
151
81
-70
-20
30
80
130
180
Q1 Q2 Q3 Q4
GROUP OPERATING PROFIT – FY2013/14
Slide 17
($ million)2012/13 2013/14
72 70
131
-44-60
87
151
81
-70
-20
30
80
130
180
Q1 Q2 Q3 Q4
+9+12.5%
-16-36.4%
+17+24.3%
+20+15.3%
12-128116SIA Engineering
69+187256Singapore Airlines
2013/14
62-9735SilkAir
67+(167)(100)SIA Cargo
2012/13 Change
CONTRIBUTION TO GROUP OPERATING PROFIT – FY2013/14 ($ million)
9.4-
36.9+
63.9-
40.1
% Change
Slide 18
+
GROUP NET PROFIT – FY2013/14
Half Year Revenue$7,097M
($ million) Full Year Net Profit
$359M
Year-on-Year-$20M-5.3%
216
1,092
336 379
0
250
500
750
1,000
1,250
1,500
09/10 10/11 11/12 12/13
Slide 19
359
13/14
GROUP NET PROFIT – FY2013/14
Slide 20
379
350
400
450
500
550
2012-13
359
2013-14
-21
Others
Absence ofGain on
Divestment and Others
+30
OperatingProfit
Higher Operating
Profit
-96
Associated
Companies
Share of Losses of
Associated Companies vs
Profit Last Year+85
Taxation
Tax Credit vs Tax
Expense Last Year
-18
Exceptional
Exceptional Items
Items
-20 (-5.3%)
$M
Slide 21
6.010.0Interim Dividend Per Share (¢)
DIVIDENDS – FY2013/14
32.230.6Earnings Per Share (¢)
17.011.0Proposed Final Dividend Per Share (¢)
2012/132013/14
23.046.0Total Dividend Per Share (¢)
-25.0Proposed Special Dividend Per Share (¢)
- 7
- 1
OUT: Decommissioned B777-200
OUT: Decommissioned A330-300
FLEET DEVELOPMENT - SIA
Slide 22
103Operating Fleet at 31 March 14
No. of Aircraft
105Operating Fleet at 31 March 15
+ 5IN: Delivery of A330-300+ 3Delivery of B777-300ER+ 2Return of B777-200 from lease
- 4OUT: Decommissioned A320-200
FLEET DEVELOPMENT - SLK
Slide 23
24Operating Fleet at 31 March 14
No. of Aircraft
27Operating Fleet at 31 March 15
+ 7IN: Delivery of B737-800
FLEET DEVELOPMENT - SCOOT
Slide 24
6Operating Fleet at 31 March 14
No. of Aircraft
+ 2IN: Delivery of B787
- 1OUT: Decommissioned B777-200
7Operating Fleet at 31 March 15
GROUP CAPITAL EXPENDITURE
FY14/15 FY15/16 FY16/17 FY17/18 FY18/19
Aircraft 2,100 3,100 2,900 4,150 4,250
Other Assets 200 200 150 150 150
Total 2,300 3,300 3,050 4,300 4,400
Slide 25
GROUP FUEL HEDGING POSITION
Slide 26
For the period Apr 14 to Mar 15
Jet Fuel Brent
Percentage hedged (%)
45.1 6.8
Average hedged price (USD/BBL - Jet Fuel)
117 97
BUSINESS OUTLOOK BUSINESS OUTLOOK FOR FOR
FY2014/15FY2014/15
OUTLOOK OUTLOOK
Intense competition
Economic and political risks
Elevated and range bound fuel prices
Slide 28
MEETING THEMEETING THECHALLENGESCHALLENGES
CHALLENGES CHALLENGES
FSC Competition
Slide 30
CHALLENGES CHALLENGES
FSC Competition
Service
Product
Network
Slide 31
Expanding our network through partnerships
As at March 2014
Over 5,000 weekly flight segments on code share partners
Over six times the number of weekly flights operated by SIA ex-SIN
NETWORK CONNECTIVITYNETWORK CONNECTIVITY
Slide 32
Slide 33
Customer Experience Management
SERVICE EXCELLENCE SERVICE EXCELLENCE
3600 view of our customers to deliver Proactive and Personalized services
CEM system will be available to all frontline service touchpoints progressively from Q3 2014
Plan & Book
Pre-Flight
Onboard
Engage
Enhancement to benefits
– Enhance reserve value feature
– Improve redemption seat availability for Solitaires
More “Pay with Miles’features
– New payment option: Combine miles and cash
– More choices:Miles can be used as payment for commercial tickets including fuel surcharge & taxes
SERVICE EXCELLENCESERVICE EXCELLENCE
Loyalty Programme Enhancements
Slide 34
“Home Away From Home” New-concept SilverKris Lounge debuted in SYD On track to upgrade SilverKris Lounges in LON, HKG and
MNL by end of 2014
PRODUCT LEADERSHIP PRODUCT LEADERSHIP
Slide 35
USD325 million retrofit of 19 B777-300ERs with latest cabin products
To provide consistency across entire B777-300ER fleet
Installation work to begin in early 2015, with all 19 aircraft completed by end of 2016
PRODUCT LEADERSHIPPRODUCT LEADERSHIP
Slide 36
PRODUCT LEADERSHIPPRODUCT LEADERSHIP
Premium Economy Class to be launched
in 2nd half 2015
Slide 37
CHALLENGES CHALLENGES
LCC Competition
FSC Competition
Service
Product
Network
Slide 38
CHALLENGES CHALLENGES
LCC Competition
Group Portfolio
FSC Competition
Service
Product
Network
Slide 39
Passed 2 million passenger milestone in Jan 2014
Commence renewal of fleet from end of 2014 with first delivery of B787
13 destinations in eight countries or territories
SCOOTSCOOT
Slide 40
SIA’s interest in Tiger Airways
Subscribed to Rights Shares in April 2013 to maintain interest at 32.7%
Increase interest to 40.0% in December 2013 after purchase of Temasek Holdings’ shares
Subscribed to perpetual convertible capital securities (PCCS) which are convertible into an additional 12.1% interest; including the PCCS, SIA’s interest in Tiger Airways stood at 52.1% as at March 2014
Tiger AirwaysTiger Airways
Slide 41
SCOOTSCOOT--TIGER PARTNERSHIPTIGER PARTNERSHIP
Slide 42
Scoot and Tiger Airways signed alliance agreement in December 2013
Submit application to the Competition Commission of Singapore (CCS) for anti-trust immunity
CCS process expected to take months and include public consultation
SCOOTSCOOT--TIGER PARTNERSHIPTIGER PARTNERSHIP
Slide 43
Denpasar
Ningbo
Shen ZhenLijiang
YogyakartaBandung
Langkawi
Male
Yangon Clark
Kalibo
Chiang Mai
PORTFOLIO OF BRANDSPORTFOLIO OF BRANDS
Full Service
LCC
Pos
itio
ning
MarketsSlide 44
Regional Long-Haul
Full Service
LCC
Pos
itio
ning
Markets
PORTFOLIO OF BRANDSPORTFOLIO OF BRANDS
Slide 45
Regional Long-Haul
Full Service
LCC
Extend
Market
ReachPos
itio
ning
MarketsRegional Long-Haul
PORTFOLIO OF BRANDSPORTFOLIO OF BRANDS
Slide 46
CHALLENGES CHALLENGES
Geography
LCC Competition
Group Portfolio
FSC Competition
Service
Product
Network
Slide 47
CHALLENGES CHALLENGES
Geography Additional Hubs
LCC Competition
Group Portfolio
FSC Competition
Service
Product
Network
Slide 48
Hub in New Dehli, India
Tap into the large Indian domestic market
Fleet of 20 A320s
No-Objection Certificate granted on 2 April 2014
Next: AOP from DGCA
TATATATA--SIA JOINT VENTURESIA JOINT VENTURE
Slide 49
Hub in Bangkok, Thailand
Second home market for Scoot
Leverage on Nok Air’s leading domestic network
Scoot to provide experience in widebody aircraft operations and international distribution
NOKSCOOT JOINT VENTURENOKSCOOT JOINT VENTURE
Slide 50
CHALLENGES CHALLENGES
Geography Additional Hubs
LCC Competition
Group Portfolio
FSC Competition
Service
Product
Network
Slide 51
Set-up of New Revenue Unit w.e.f 29 July 2013
Various on-going initiatives Commission-based 3rd party products
Inflight & Merchandising
Advertising
Slide 52
NEW REVENUE NEW REVENUE
Airbus Asia Training Centre
MoU signed to establish flight training JV in Singapore
Operations to commence in Dec 2014
NEW VENTURENEW VENTURE
Slide 53
Thank You