SINGAPORE AIRLINES GROUP ANALYST / MEDIA BRIEFING FY21-11 11 RESULTS 13 MAY 211 THE PARENT AIRLINE FY21/11 RESULTS
THE PARENT AIRLINE COMPANY RESULTS FY21/11 4Q/1 $million Better/ (Worse) $million 21/11 $million Better/ (Worse) $million Total Revenue 2,926 242 11,739 1,594 Total Expenditure 2,832 (37) 1,888 (74) -Fuel Cost 1,76 (242) 3,755 (678) - Fuel Hedging (Gain)/Loss (33) 49 5 41 -Ex-fuel Cost 1,789 (114) 7,83 (436) Operating Profit 94 (65) 851 89 Slide 3 THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE FY21/11 4Q/1 % Change 21/11 % Change Available Seat-KM (million) 27,487 5.3 18,6 2.3 Revenue Pax-KM (million) 2,758 -.5 84,81 2.3 Passenger Load Factor (%) 75.5-4.5 pts 78.5.1 pt Slide 4
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE FY21/11 4Q/1 % Change 21/11 % Change Passenger Yield ( /pkm) 12.1 9. 11.9 14.4 Passenger Unit Cost ( /ask) 9.1 5.8 8.9 3.5 Passenger Breakeven Load Factor (%) 75.2-2.3 pts 74.8-7.9 pts Slide 5 THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE FY21/11 4Q/1 % Change 21/11 % Change Passenger Load Factor (%) 75.5-4.5 pts 78.5.1 pt Passenger Breakeven Load Factor (%) 75.2-2.3 pts 74.8-7.9 pts Passenger Load Factor Spread (% pts).3-2.2 pts 3.7 8. pts Slide 6
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor (%) 84 8 79.2 8.3 78.4 78.5 76 76.5 72 68 64 6/7 7/8 8/9 9/1 1/11 Slide 7 THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Passenger Load Factor (%) Breakeven Load Factor 84 82.7 8 79.2 8.3 78.4 78.5 76 76.5 72 72.5 73.6 74.8 68 69.4 64 6/7 7/8 8/9 9/1 1/11 Slide 8
THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE (%) 84 8 76 72 79.2 72.5 6.7 Passenger Load Factor Breakeven Load Factor 82.7 8.3 78.4 76.5 1.9 2.9 73.6-4.3 78.5 74.8 3.7 68 69.4 64 6/7 7/8 8/9 9/1 1/11 Slide 9 THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE ( /PKM) 14 Passenger Yield 13 12 12.8 12.1 11 \ 1 9 9.8 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 28/9 29/1 21/11 Slide 1
THE PARENT AIRLINE COMPANY COST COMPOSITION FY21/11 Others 21.3% (.2% pt) Passenger Costs 5.1% (-.2% pt) Handling Costs 7.4% (-.3% pt) Staff Costs 14.2% (.7% pt) Fuel 35.% (.3% pt) Aircraft Depreciation & Rentals 17.% (-.7% pt) Slide 11 THE PARENT AIRLINE COMPANY TOP 5 EXPENDITURE FY21/11 Fuel 3,85 (7.6%) Aircraft Depr. & Lease Rentals Staff Costs Handling Costs 83 (2.%) 1,854 (3.1%) 1,55 (12.8%) FY1/11 FY9/1 Passenger Costs 56 (3.3%) 1, 2, 3, 4, 5, Slide 12
THE PARENT AIRLINE COMPANY FUEL EXPENDITURE FY21/11 5, 4,5 4, 3,5 3,537 841 1-263 -41 3,85 (268) 3, Higher weighted average fuel price Higher volume uplifted Weaker US Dollar Lower Hedging Losses FY9/1 Price Volume Exchange Hedging FY1/11 Slide 13 THE PARENT AIRLINE COMPANY COST COMPOSITION 4Q FY21/11 Others 2.2% (-2.5% pts) Sales Costs 4.9% (-.3% pt) Handling Costs 7.2% (-.3% pt) Staff Costs 14.% (.6% pt) Fuel 36.8% (3.1% pts) Aircraft Depreciation & Rentals 16.9% (-.6% pt) Slide 14
THE PARENT AIRLINE COMPANY FUEL EXPENDITURE 4Q FY21/11 1,2 1, 851 38 37-13 -49 1,43 (193) 8 6 4 2 Higher weighted average fuel price Higher volume uplifted Weaker US Dollar Hedging Gains vs Losses FY9/1 Price Volume Exchange Hedging FY1/11 Slide 15 THE PARENT AIRLINE COMPANY FUEL PRICE AND EXPENDITURE - TREND Fuel Expenditure (before hedging) 1,6 1,4 1,2 1, 8 64 6 631 796 Fuel Price 815 834 875 9 866 99 938 119 (USD/BBL) 13 12 11 1 9 1,76 8 7 6 5 1Q/PY 2Q/PY 3Q/PY 4Q/PY 1Q/CY 2Q/CY 3Q/CY 4Q/CY 4 Slide 16
THE GROUP FY21/11 RESULTS GROUP REVENUE FY21/11 29/1 (Proforma) 21/11 4, 3,841 3,75 3,5 3,466 3,631 3,429 3,35 3,587 3,25 3, 2,944 2,75 2,659 Q1 Q2 Q3 Q4 Slide 18
GROUP REVENUE FY21/11 4, 29/1 (Proforma) 21/11 3,75 3,5 3,25 87 (3%) 687 (23%) 412 (12%) 282 (9%) 3, 2,75 Q1 Q2 Q3 Q4 Slide 19 GROUP EXPENDITURE FY21/11 4, 29/1 (Proforma) 21/11 3,75 3,5 3,25 3, 3,25 3,215 3,155 3,286 3,16 3,332 3,64 3,421 2,75 Q1 Q2 Q3 Q4 Slide 2
GROUP EXPENDITURE FY21/11 4, 29/1 (Proforma) 21/11 3,75 3,5 3,25 3, 19 (6%) 131 (4%) 226 (7%) 357 (12%) 2,75 Q1 Q2 Q3 Q4 Slide 21 GROUP OPERATING PROFIT/(LOSS) FY21/11 6 5 29/1 (Proforma) 21/11 59 4 3 2 1 345 323 251 241 166-1 -2-3 -4-211 -366 Q1 Q2 Q3 Q4 Slide 22
GROUP OPERATING PROFIT/(LOSS) FY21/11 6 29/1 (Proforma) 21/11 5 4 3 2 1 617 (n.m.) 556 (n.m.) 186 (58%) -75 (-31%) -1-2 -3-4 n.m. not meaningful Q1 Q2 Q3 Q4 Slide 23 GROUP NET PROFIT/(LOSS) FY21/11 29/1 (Proforma) 21/11 6 5 4 3 253 38 44 288 278 2 171 1-1 -2-3 -4-343 -182 Q1 Q2 Q3 Q4 Slide 24
GROUP NET PROFIT/(LOSS) FY21/11 29/1 (Proforma) 21/11 6 5 4 3 2 1 596 (n.m.) 562 (n.m.) -116 (-29%) -17 (-38%) -1-2 -3-4 n.m. not meaningful Q1 Q2 Q3 Q4 Slide 25 GROUP REVENUE FY21/11 16, 15,5 15,973 15,997 Full Year Revenue $14,525M 15, 14,5 14, 14,494 14,525 $1,817M (14.3%) 13,5 13, 12,78 12,5 6/7 7/8 8/9 9/1 1/11 Slide 26
GROUP REVENUE FY21/11 16, 15,5 15,632 (-341) 15,537 (-46) Full Year Revenue $14,525M 15, 14,5 14, 14,146 (-348) 14,525 $1,817M (14.3%) 13,5 13, 12,5 12,337 (-371) 6/7 7/8 8/9 9/1 1/11 (ex-sats) $2,188M (17.7%) Slide 27 GROUP EXPENDITURE FY21/11 16, 15,5 15, 14,5 14, 13,848 15,93 Half Full Year Expenditure Revenue $13,254M $7,97M $69M (4.8%) 13,5 13,18 13,254 13, 12,645 12,5 6/7 7/8 8/9 9/1 1/11 Slide 28
GROUP EXPENDITURE FY21/11 16, 15,5 15, 14,5 14, 13,5 13, 12,5 12,951 (-229) 13,662 (-186) 14,825 (-268) 12,35 (-295) 13,254 6/7 7/8 8/9 9/1 1/11 Half Full Year Expenditure Revenue $13,254M $7,97M $69M (4.8%) (ex-sats) $94M (7.3%) Slide 29 GROUP OPERATING PROFIT/(LOSS) FY21/11 2,5 2, 2,125 Half Full Year Revenue Op Profit $7,97M $1,271M 1,5 1, 1,314 94 1,271 $1,28M 5 63-5 6/7 7/8 8/9 9/1 1/11 Slide 3
GROUP OPERATING PROFIT/(LOSS) FY21/11 2,5 2, 1,5 1, 5-5 1,195 (-119) 1,97 (-155) 712 (-192) -13 (-76) 1,271 6/7 7/8 8/9 9/1 1/11 Half Full Year Revenue Op Profit $7,97M $1,271M $1,28M (ex-sats) $1,284M Slide 31 CONTRIBUTION TO GROUP OPERATING PROFIT FY21/11 21/11 29/1 Change Singapore Airlines 851 (39) 89 SIA Cargo 151 (145) 296 SIA Engineering 136 11 26 SilkAir 121 49 72 Slide 32
GROUP NET PROFIT FY21/11 1,8 1,6 1,4 1,2 1, 8 6 4 2 1,271 Op Profit 35 Surplus on disposal of aircraft, share of profits of associated companies and JVs, and others Non Operating Items -22 Provision for fines imposed on SIA Cargo 1,419 Exceptional Profit Item Before Tax -27 Tax -57 Non Controlling Interests 1,92 Net Profit Slide 33 GROUP NET PROFIT FY21/11 2,5 2,129 2, 2,49 Half Full Year Net Revenue Profit $1,92M $7,97M 1,5 1, 1,62 1,92 $876M 5 216 6/7 7/8 8/9 9/1 1/11 Slide 34
GROUP NET PROFIT FY21/11 2,5 2, 1,5 1, 5 1,953 (-176) 1,915 (-134) 924 (-138) 157 (-59) 1,92 6/7 7/8 8/9 9/1 1/11 Half Full Year Net Revenue Profit $1,92M $7,97M $876M (ex-sats) $935M Slide 35 GROUP NET PROFIT FY21/11 1,8 1,5 1,2 1,284 142-22 1,92 (935) 9-289 6 3 157 FY9/1 (Proforma) Higher operating profit Operating Profit Higher surplus on disposal of aircraft and other nonoperating items Non Operating Items Provision for fines imposed on SIA Cargo Exceptional Items Tax expense vs tax credit and others Tax and Others FY1/11 Slide 36
PER SHARE STATISTICS FY21/11 EBITDAR Per Share ($) 21/11 3.33 29/1 2.25 Earnings Per Share ( ) 91.4 18.2 Net Asset Value Per Share ($) At 31 Mar 11 11.89 At 31 Mar 1 11.3 Slide 37 DIVIDENDS FY21/11 Earnings Per Share ( ) 21/11 91.4 29/1 18.2 Interim Dividend Per Share ( ) 2. - Proposed Final Dividend Per Share ( ) Proposed Special Dividend Per Share ( ) 4. 8. 12. - Slide 38
OUTLOOK FOR 211/12 CHALLENGES AHEAD Twin challenges of: High and volatile fuel prices Forward load concerns Slide 4
JET FUEL PRICES Two-and-half year high 25% surge in jet fuel prices since Jan11 Average price for Apr11: USD14/BBL High and volatile forward prices Continuing tensions in Middle East Weaken fragile economic recovery Slide 41 JET FUEL PRICES Sing Jet Kero Fuel Price Trend Since 3 Sep 1 (USD/BBL) 15 14 North Asia and Middle East unrest 13 12 USD39/BBL 11 1 9 8 3-Sep 7-Oct 14-Oct 21-Oct 28-Oct 4-Nov 11-Nov 18-Nov 25-Nov 2-Dec 9-Dec 16-Dec 23-Dec 3-Dec 6-Jan 13-Jan 2-Jan 27-Jan 3-Feb 1-Feb 17-Feb 24-Feb 3-Mar 1-Mar 17-Mar 24-Mar 31-Mar 7-Apr 14-Apr 21-Apr 28-Apr 5-May Slide 41-A
UNCERTAIN ECONOMIC OUTLOOK Negative outlook in US Fears of sovereign debt crisis in Europe Nuclear radiation in Japan Forward bookings indicate weaker loads in near term Slide 42 OUTLOOK FOR 211/12 - FLEET DEVELOPMENT Operating Fleet at 31 March 11 IN: Delivery of A38-8 No. of Aircraft 18 8 OUT: Return to Lessor (5x B777s, 1x B744) Sale (B744s) Freighter conversion (B744) 6 5 1-12 Operating Fleet at 31 March 12 14 Slide 43
OUTLOOK FOR 211/12 - GROUP CAPITAL EXPENDITURE FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 Aircraft 2,15 1,4 2,4 2,8 1,95 Other Assets 5 1 1 15 15 Total 2,2 1,5 2,5 2,95 2,1 Slide 44 Singapore Airlines Limited Company Registration No.: 197278R Further information and media releases can be found at the Singapore Airlines internet website www.singaporeair.com.sg