medi a analyst presentati on fy2006 07 results 11 may
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MEDI A/ ANALYST PRESENTATI ON FY2006-07 RESULTS 11 MAY 2007 SI A - PowerPoint PPT Presentation

MEDI A/ ANALYST PRESENTATI ON FY2006-07 RESULTS 11 MAY 2007 SI A GROUP SI A GROUP FY2006- -07 RESULTS 07 RESULTS FY2006 GROUP REVENUE GROUP REVENUE FY2006/ 07 ($ million) FY2006/ 07 ($ million) ($ million) 15,000 14,494


  1. MEDI A/ ANALYST PRESENTATI ON FY2006-07 RESULTS 11 MAY 2007

  2. SI A GROUP SI A GROUP FY2006- -07 RESULTS 07 RESULTS FY2006

  3. GROUP REVENUE GROUP REVENUE – FY2006/ 07 ($ million) FY2006/ 07 ($ million) – ($ million) 15,000 14,494 14,000 13,341 Record 13,000 Revenue 12,013 12,000 8.6% 11,000 10,515 9,762 10,000 9,000 5-Year CAGR + 8.4% 8,000 0 2003 2004 2005 2006 2007

  4. GROUP EXPENDI TURE GROUP EXPENDI TURE – FY2006/ 07 ($ million) FY2006/ 07 ($ million) – ($ million) 15,000 14,000 13,180 Group 13,000 12,128 Expenditure 12,000 8.7% 10,696 11,000 9,798 10,000 9,093 9,000 5-Year CAGR + 7.7% 8,000 0 2003 2004 2005 2006 2007

  5. GROUP OPERATI NG PROFI T GROUP OPERATI NG PROFI T – FY2006/ 07 ($ million) FY2006/ 07 ($ million) – ($ million) 1,600 1,400 1,314 1,317 1,213 Operating 1,200 Profit 8.3% 1,000 800 717 669 600 5-Year CAGR 400 + 16.4% 200 0 2003 2004 2005 2006 2007

  6. GROUP OPERATI NG PROFI T GROUP OPERATI NG PROFI T – FY2006/ 07 ($ million) FY2006/ 07 ($ million) – ($ million) 3,000 -677 + 1,153 2,500 2,000 -375 1,314 1,500 1,213 101 1,000 Higher loads Higher Higher & improved fuel spend costs 500 yields ex-fuel 0 2006 Operating Fuel Ex-Fuel 2007 Revenue Expenditure Expenditure

  7. GROUP FUEL EXPENDI TURE GROUP FUEL EXPENDI TURE – FY2006/ 07 ($ million) FY2006/ 07 ($ million) – ($ million) 6,000 4,917 5,000 Fuel 4,240 Expenditure 4,000 16.0% 3,000 2,693 1,865 1,811 2,000 5-Year CAGR + 27.4% 1,000 0 2003 2004 2005 2006 2007

  8. GROUP EX- -FUEL EXPENDI TURE FUEL EXPENDI TURE GROUP EX – FY2006/ 07 ($ million) FY2006/ 07 ($ million) – ($ million) 10,000 8,263 8,003 7,933 7,888 Ex-Fuel 8,000 7,282 Expenditure 4.8% 6,000 4,000 5-Year CAGR + 1.0% + 2,000 0 2003 2004 2005 2006 2007

  9. CONTRI BUTI ON TO GROUP OPERATI NG CONTRI BUTI ON TO GROUP OPERATI NG PROFI T – – FY2006/ 07 FY2006/ 07 PROFI T 110 Others 4.9% 100 5.8% SI A 7.8% SI AEC 90 24.5% pts 11.1% 11.7% SATS 80 15.2% Percentage (% ) SI A Cargo 70 16.8% pts 60 50 53.6% SATS Group 78.1% SI A 40 3.5% pts 30 20 SI AEC 10 3.3% pts 14.3% -2.5% 0 SI A Cargo 2006 2007 -10

  10. GROUP NET PROFI T GROUP NET PROFI T – FY2006/ 07 ($ million) FY2006/ 07 ($ million) – ($ million) 2,500 + 247 2,129 + 421 2,000 888 + 119 1,500 + 101 1,241 1,000 Higher Surplus on Sale of Tax operating SI A Building disposal writeback profit of Aircraft & SALE 500 & Others 0 2006 Operating Non-Op Exceptional Tax 2007 Profit Surpluses I tems Writeback

  11. THE PARENT AI RLI NE THE PARENT AI RLI NE FY2006- -07 RESULTS 07 RESULTS FY2006

  12. THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY HI GHLI GHTS – – FY2006/ 07 FY2006/ 07 HI GHLI GHTS Highlights of Company’s Performance � Capacity growth (+ 2.8% ) � Passengers carriage (+ 7.7% ) � Passenger load factor 79.2% (+ 3.6% points) � Passenger yield 10.9¢/ pkm (+ 2.8% ) � Record revenue $11,344 million (+ 10.1% ) � Unit cost 7.9¢/ ask (+ 5.3% ) � Record operating profit $1,027 million (+ 57.8% )

  13. THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY RESULTS – – FY2006/ 07 FY2006/ 07 RESULTS 2006- -07 07 2005- -06 06 % Change 2006 2005 % Change Total Revenue 11,343.9 10,302.8 + 10.1 Total Revenue 11,343.9 10,302.8 + 10.1 Total Expenditure (10,316.9) (9,651.8) + 6.9 Total Expenditure (10,316.9) (9,651.8) + 6.9 Operating Profit 1,027.0 651.0 + 57.8 Operating Profit 1,027.0 651.0 + 57.8

  14. THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE – – FY2006/ 07 FY2006/ 07 OPERATI NG PERFORMANCE 2006- -07 07 2005- -06 06 % Change 2006 2005 % Change Passenger Yield 10.9 10.6 + 2.8 Passenger Yield 10.9 10.6 + 2.8 ( ¢ ¢/ / pkm pkm) ) ( Unit Cost 7.9 7.5 + 5.3 Unit Cost 7.9 7.5 + 5.3 ( ¢ ¢/ ask) / ask) ( Passenger Passenger 72.5 72.5 70.8 70.8 + + 1.7 1.7 pts pts Breakeven Load Breakeven Load Factor (% ) Factor (% )

  15. THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE – – FY2006/ 07 FY2006/ 07 OPERATI NG PERFORMANCE (Billion KM) 120 Capacity (ASK) 110 2.8% ASK 100 Passenger Carriage (RPK) 90 79.2 7.7% PLF 75.6 80 Pax. Load Factor (% ) RPK 3.6% pts 0 2006 2007

  16. THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE – – FY2006/ 07 FY2006/ 07 OPERATI NG PERFORMANCE 2006- -07 07 2005- -06 06 % Change 2006 2005 % Change Passenger Load 79.2 75.6 + 3.6 pts Passenger Load 79.2 75.6 + 3.6 pts Factor (% ) Factor (% ) Passenger 72.5 70.8 + 1.7 pts Passenger 72.5 70.8 + 1.7 pts Breakeven Load Breakeven Load Factor (% ) Factor (% ) Passenger Load 6.7 pts 4.8 pts + 1.9 pts Passenger Load 6.7 pts 4.8 pts + 1.9 pts Factor Spread (% ) Factor Spread (% )

  17. THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE – – FY2006/ 07 FY2006/ 07 OPERATI NG PERFORMANCE (% ) 82 Passenger Load Factor Breakeven Load Factor 80 78 6.7 76 0.9 74 4.8 0.5 72 4.8 70 68 66 64 62 60 2003 2004 2005 2006 2007

  18. THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY COST COMPOSI TI ON – – FY2006/ 07 FY2006/ 07 COST COMPOSI TI ON Others 22.6% (-0.8% pt) Fuel Sales Costs 37.6% 6.0% (+ 2.7% pts) (-0.7% pt) Airport Handling 7.3% (-0.3% pt) Aircraft Staff Depreciation & Rental 16.3% 10.2% (-0.9% pt)

  19. THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY COST ANALYSI S – – FY2006/ 07 FY2006/ 07 COST ANALYSI S $3,881 M Fuel (+ 15.2% ) $1,686 M Staff (+ 7.3% ) $1,050 M Depr, Rentals & 2006-07 (-2.2% ) Carrying Costs 2005-06 $753 M Airport Handling (+ 2.7% ) $620 M Sales (-4.1% ) $2,327 M Others (+ 3.0% ) 0 1000 2000 3000 4000 5000 ($ million)

  20. THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY FUEL COST – – FY2006/ 07 FY2006/ 07 FUEL COST (USD/ BBL) ($ million) 100 7,000 84.40 90 6,000 76.26 80 5,000 70 3,881 54.58 (+ 15.2% ) 60 4,000 3,368 50 37.91 3,000 34.51 40 2,148 30 2,000 1,523 1,416 20 1,000 10 0 0 2003 2004 2005 2006 2007

  21. SI A SUBSI DI ARI ES SI A SUBSI DI ARI ES FY2006- -07 RESULTS 07 RESULTS FY2006

  22. SUBSI DI ARI ES NET PROFI T SUBSI DI ARI ES NET PROFI T – FY2006/ 07 ($ million) FY2006/ 07 ($ million) – 2006- -07 07 2005- -06 06 % Change 2006 2005 % Change SI AEC Group 242.1 230.6 + 5.0 SI AEC Group 242.1 230.6 + 5.0 SATS Group 178.2 188.6 - 5.5 SATS Group 178.2 188.6 - 5.5 SI A Cargo 30.6 135.3 - 77.4 SI A Cargo 30.6 135.3 - 77.4 SilkAir 19.8 20.6 - 3.9 SilkAir 19.8 20.6 - 3.9

  23. LOOKI NG LOOKI NG AHEAD AHEAD

  24. LOOKI NG AHEAD LOOKI NG AHEAD � Fuel Hedging Position � Capital Expenditure � Airbus A380 � Fleet Development

  25. GROUP FUEL HEDGI NG GROUP FUEL HEDGI NG POSI TI ON – – FY2007/ 08 FY2007/ 08 POSI TI ON � Budgeted Uplift Volume (M BBL) 37 � Hedging Target (% ) 45 + / - 15 � Percentage Hedged (% ) at May 07 42 � Avg Hedged Price (USD/ BBL - Jet Fuel) 84

  26. GROUP CAPI TAL EXPENDI TURE GROUP CAPI TAL EXPENDI TURE FOR NEXT 5 YEARS ($ million) FOR NEXT 5 YEARS ($ million) FY07/ 08 FY08/ 09 FY09/ 10 FY10/ 11 FY11/ 12 FY07/ 08 FY08/ 09 FY09/ 10 FY10/ 11 FY11/ 12 Aircraft 1,800 2,300 3,500 4,800 4,500 Aircraft 1,800 2,300 3,500 4,800 4,500 Other Assets 600 Other Assets 600 500 500 300 300 500 500 300 300 Total Total 2,400 2,400 2,800 2,800 4,000 4,000 5,100 5,100 4,800 4,800

  27. AI RBUS A380- -800 800 AI RBUS A380 – FY2007/ 08 FY2007/ 08 – � 1 st unit delivery October 2007, into commercial service in November 2007 to Sydney � 2 nd and 3 rd units delivery January and February 2008 for London route

  28. PASSENGER FLEET DEVELOPMENT PASSENGER FLEET DEVELOPMENT – FY2007/ 08 FY2007/ 08 – � Operating Fleet at 1 April 2007 94 � Aircraft Deliveries � Airbus A380-800 3 � Boeing B777-300ER 5 � Aircraft Sold Off � Boeing B747-400 5 � Operating Fleet at 31 March 2008 97

  29. DI VI DENDS DI VI DENDS

  30. DI VI DENDS DI VI DENDS – FY2006/ 07 FY2006/ 07 – 2006- -07 07 2005- -06 06 2006 2005 Earnings Per Share ( ¢ ¢) ) 172.6 101.7 Earnings Per Share ( 172.6 101.7 I nterim Dividend Per I nterim Dividend Per Share Paid ( ¢ ¢) ) Share Paid ( 15.0 10.0 15.0 10.0 Proposed Final Proposed Final Dividend Per Share ( ¢ ¢) ) Dividend Per Share ( 35.0 35.0 35.0 35.0 Total Ordinary Total Ordinary Dividend Per Share ( ¢ ¢) ) Dividend Per Share ( 45.0 50.0 45.0 50.0

  31. SPECI AL DI VI DEND SPECI AL DI VI DEND – FY2006/ 07 FY2006/ 07 – Monetization of Non-Core Assets � Sale of SI A Building and of 35.5% stake in Singapore Aircraft Leasing Enterprise � Total proceeds $852 Million Proposed Special Dividend � 50¢ per share, approximately $625 Million � 73% of proceeds

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