Half Year and 2nd Quarter FY2005-06 Financial Results 27 October 2005 Singapore Airlines Limited Company Registration No.: 197200078R Further information and media releases can be found at the Singapore Airlines internet website www.singaporeair.com.sg
SIA GROUP 1H 2005/06 RESULTS
GROUP HIGHLIGHTS 1H FY05/06 Highlights of Group s Performance Record revenue $6,395 million (10.7%) Operating profit $584 million (-6.3%) Net profit $578 million (-3.9%) Earnings per share 47.4 cents (-3.9%) Interim dividend per share 10.0 cents (unchanged)
GROUP PROFIT ATTRIBUTABLE TO SHAREHOLDERS 1H FY05/06 ($ million) ($ million) 650 600 550 601.1 568.6 547.6 577.8 500 450 400 350 300 250 200 254.7 234.6 334.0 343.2 346.4 313.0 2004-05 2005-06 Bloomberg Forecast Reuters Forecast 0 1st Qtr 2nd Qtr Half Year
GROUP RESULTS 1H FY05/06($ million) 1H/05 1H/04 % Change Total Revenue 6,394.7 5,778.8 10.7 Total Expenditure (5,811.0) (5,156.0) 12.7 Operating Profit 583.7 622.8-6.3 Net Profit Attributable to Shareholders 577.8 601.1-3.9
GROUP REVENUE 1H FY05/06 ($ million) ($ million) 8,000 7,000 10.7% 6,395 6,000 5,000 4,000 4,732 5,229 4,172 5,779 3,000 2,000 1,000 0 1H/01 1H/02 1H/03 1H/04 1H/05
GROUP FUEL EXPENDITURE 1H FY05/06 ($ million) ($ million) 2,500 2,000 61.9% 1,939 1,500 1,198 1,000 903 882 820 500 0 1H/01 1H/02 1H/03 1H/04 1H/05
GROUP EX-FUEL EXPENDITURE 1H FY05/06 ($ million) ($ million) 5,000 4,000 3,000 3,377 3,838 3,414 3,958 3,872-2.2% 2,000 1,000 0 1H/01 1H/02 1H/03 1H/04 1H/05
GROUP RESULTS 1H FY05/06 Net Asset Value Per Share ($) Total Debt/Equity At 30 Sep 05 10.58 0.18:1 At 31 Mar 05 10.14 0.19:1
CONTRIBUTION TO GROUP OPERATING PROFIT 1H FY05/06 SIA Cargo 12% (15%) Others 5% (4%) SIAEC 10% (10%) SIA 54% (54%) SATS 19% (17%) 1H FY04 Contribution
THE PARENT AIRLINE 1H 2005/06 RESULTS
THE PASSENGER AIRLINE COMPANY RESULTS 1H FY05/06 ($ million) 1H/05 1H/04 % Change Total Revenue 4,978.3 4,449.0 11.9 Total Expenditure (4,665.6) (4,112.4) 13.5 Operating Profit 312.7 336.6-7.1
THE PASSENGER AIRLINE COMPANY OPERATING PERFORMANCE 1H FY05/06 1H/05 1H/04 % Change Passenger Yield ( /pkm) 10.4 9.9 5.1 Unit Yield ( /ask) 7.7 7.3 5.5 Unit Cost ( /ask) 7.2 6.8 5.9 Passenger Breakeven Load Factor (%) 69.2 68.7 0.5 pt
THE PASSENGER AIRLINE COMPANY OPERATING PERFORMANCE 1H FY05/06 1H/05 1H/04 % Change Seat Capacity 6.1 Passenger Carriage 6.7 Passenger Load Factor (%) 74.3 73.9 0.4 pt Passenger Breakeven Load Factor (%) 69.2 68.7 0.5 pt Passenger Load Factor Spread (%) 5.1 pts 5.2 pts - 0.1 pt
THE PASSENGER AIRLINE COMPANY COST COMPOSITION 1H FY05/06 Others 23.7% (-4.4pts) Fuel 33.2% (10.0 pts) Sales 7.0% (-1.1pts) Handling 8.2% (-0.6 pt) Aircraft depreciation & rental 11.4% (-2.0 pts) Staff 16.5% (-1.9 pts)
FUEL PRICE 1H FY05/06 90 85 80 81.0 1H/05 75 Avg 73.4 USD/BBL 70 65 60 55 70.5 56.8 1H/04 50 Avg 49.1 45 40 35 42.2 Apr May Jun Jul Aug Sep
THE PASSENGER AIRLINE COMPANY COST ANALYSIS 1H FY05/06 Fuel $1,549.2M (62.4%) Staff Depr, Rentals & Carrying Costs Handling Sales Others $533.2M (-3.1%) $381.4M (5.1%) $326.0M (-2.3%) $767.9M (1.4%) 1H/05 1H/04 $1,107.9M (-4.0%) 0 400 800 1200 1600 2000 $ million
THE PASSENGER AIRLINE COMPANY COST ANALYSIS 1H FY05/06 Fuel $1,549.2M (62.4%) Staff 1H/05 $767.9M (1.4%) 1H/04 Better/Worse Depr, Fuel Rentals cost & Carrying Costs Hedging (gain)/loss Handling 1,714 M (165) M 1,109 M (155) M 605 M 1H/05 1H/04 10 M Fuel cost (net) Sales 1,549 M 954 M 595 M Others 0 400 800 1200 1600 2000
THE PASSENGER AIRLINE COMPANY COST ANALYSIS 1H FY05/06 Fuel $1,549.2M (62.4%) Staff 1H/05 $767.9M (1.4%) 1H/04 Better/Worse Depr, Fuel Rentals cost & Carrying Costs Hedging (gain)/loss (165) M Increase Handling in volume uplifted Weakening of USD against SGD Fuel cost (net) 1,549 M Sales Increase in weighted average fuel price Others 1,714 M 1,109 M (155) M 954 M 605 M 1H/05 1H/04 10 M 58 M - 38 M 595 M 585 M 605 M 0 400 800 1200 1600 2000
THE PASSENGER AIRLINE COMPANY COST ANALYSIS 1H FY05/06 Fuel $1,549.2M (62.4%) Staff 1H/05 $767.9M (1.4%) 1H/04 Better/Worse Depr, Fuel Rentals cost & Carrying Costs 1,714 M Hedging (gain)/loss (165) M Increase Handling in volume uplifted Weakening of USD against SGD Fuel cost (net) 1,549 M Sales Increase in weighted average fuel price 1,109 M (155) M 954 M 605 M 1H/05 1H/04 10 M 58 M - 38 M 595 M 585 M Others Recovery of increase in fuel bill due to price increase 40% 0 400 800 1200 1600 2000
SIA SUBSIDIARIES 1H 2005/06 RESULTS
SUBSIDIARIES NET PROFIT 1H FY05/06 ($ million) 1H/05 1H/04 % Change SIA Cargo 45.0 69.5-35.3 SATS Group 106.8 78.4 36.2 SIAEC Group 105.6 85.4 23.7 SilkAir (2.5) 2.8 n.m.
SIA CARGO RESULTS 1H FY05/06 ($million) 1H/05 1H/04 % Change Total Revenue 1,530.4 1,376.0 11.2 Total Expenditure (1,463.2) (1,281.1) 14.2 Operating Profit 67.2 94.9-29.2 Net Profit 45.0 69.5-35.3
SIA CARGO OPERATING PERFORMANCE 1H FY05/06 1H/05 1H/04 % Change Cargo Yield ( /ltk) 37.8 34.7 8.9 Unit Cost ( /ctk) 22.6 21.1 7.1 Breakeven Load Factor (%) 59.8 60.8-1.0 pt
SIA CARGO OPERATING PERFORMANCE 1H FY05/06 1H/05 1H/04 % Change Capacity 7.8 Load Carried 4.3 Cargo Load 61.8 63.9-2.1 pts Factor (%) Breakeven Load Factor (%) 59.8 60.8-1.0 pt Cargo Load 2.0 pts 3.1 pts - 1.1 pts Factor Spread (%)
SILKAIR RESULTS 1H FY05/06 ($ million) 1H/05 1H/04 % Change Total Revenue 146.0 132.5 10.2 Total Expenditure (149.6) (126.6) 18.2 Operating Profit (3.6) 5.9 n.m. Net Profit (2.5) 2.8 n.m.
SILKAIR OPERATING PERFORMANCE 1H FY05/06 1H/05 1H/04 % Change Overall Yield ( /ltk) 131.0 127.2 3.0 Overall Unit Cost ( /ctk) 70.1 65.1 7.7 Overall Breakeven Load Factor (%) 53.5 51.2 2.3 pts
SILKAIR OPERATING PERFORMANCE 1H FY05/06 1H/05 1H/04 % Change Capacity 10.0 Load Carried 8.1 Overall Load 51.2 52.1-0.9 pt Factor (%) Overall Breakeven Load Factor (%) 53.5 51.2 2.3 pts Overall Load -2.3 pts 0.9 pt - 3.2 pts Factor Spread (%)
OUTLOOK & DEVELOPMENTS
OUTLOOK Fuel Price Forward Bookings SIA Cargo Tiger Airways
GROUP FUEL HEDGING FULL YEAR POSITION FY05/06 Budgeted Uplift Volume (M BBL) 36 Percentage Hedged (%) 51 Weighted Average Hedged Price (USD/BBL) 64.58 Average October 05 Fuel Price (USD/BBL) 77.27
SIA CARGO 15 th B747-400F delivered in Oct 05 Add 2x weekly to Chicago via New Delhi, Bangalore and Copenhagen Freight volume volatile but demand build up to pre X mas peak
Tiger Airways Share capital authorised $80.0M SIA share @ 49% $39.2M As at 30 Sep 05, since inception, SIA has paid up $ 8.0M
PASSENGER NETWORK DEVELOPMENT 2H FY05/06 Frequency increases Bangalore Hyderabad (shift of services from SilkAir A320 to SIA B777) Planned (x weekly) 2 4 Total (x weekly) 5 4 Supplementary Services Adelaide Perth Taipei 1 3 3 5 21 17
PASSENGER NETWORK DEVELOPMENT 2H FY05/06 Shift of services to SilkAir from 30 Oct 05 Surabaya 14x weekly Shenzhen 6x weekly