SI A ANALYST/ MEDI A BRI EFI NG FY2014/15 Results 15 May 2015 THE PARENT AI RLI NE FY2014/ 15 RESULTS 1
THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE – FY2014/ 15 % % 4Q/ 14 Change 14/ 15 Change Available Seat-KM 29,091 -0.9 120,001 -0.4 (million) Revenue Pax-KM 22,144 -2.0 94,209 -0.9 (million) Passenger Load 76.1 -0.9 pt 78.5 -0.4 pt Factor (% ) Slide 3 THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE – FY2014/ 15 % % 4Q/ 14 Change 14/ 15 Change Passenger Yield 11.4 + 2.7 11.2 + 0.9 (¢/ pkm) Slide 4 2
THE PARENT AI RLI NE COMPANY RESULTS – FY2014/ 15 Monthly Pax Yields (I ncluding Fuel Surcharge) FY12/ 13 FY13/ 14 FY14/ 15 ¢/ pkm 12 11.6 11.6 11.5 11.5 11.4 11.4 11.4 11.4 11.4 11.3 11.3 11.3 11.2 11.2 11.4 11.2 11.1 11.1 11.3 11.3 11 10.9 11.1 11.1 10.8 10.8 11.1 11.2 11.0 10.9 10.9 10.7 10.7 10.8 10 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Slide 5 THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE – FY2014/ 15 % % 4Q/ 14 Change 14/ 15 Change Passenger Yield 11.4 + 2.7 11.2 + 0.9 (¢/ pkm) Passenger Unit Cost 9.0 - 2.2 8.9 -2.2 (¢/ ask) Passenger Unit Ex- 5.5 + 3.8 5.2 + 2.0 Fuel Cost (¢/ ask) Passenger Breakeven 78.9 -4.0 pts 79.5 -2.5 pts Load Factor (% ) Slide 6 3
THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE % Passenger Load Factor 90 Breakeven Load Factor 85 82.0 80.7 79.5 -3.1 80 -1.4 78.5 -1.0 78.0 79.3 78.9 -0.6 78.5 + 3.7 77.4 75 74.8 70 65 60 10/ 11 11/ 12 12/ 13 13/ 14 14/ 15 Slide 7 THE PARENT AI RLI NE COMPANY RESULTS – FY2014/ 15 Better/ Better/ (Worse) (Worse) 4Q/ 14 14/ 15 $million $million $million $million Total Revenue 3,002 54 12,418 (61) Total Expenditure 2,932 76 12,078 146 - Fuel Cost 724 456 4,079 764 - Fuel Hedging Loss 287 (311) 457 (528) - Ex-fuel Cost 1,921 (69) 7,542 (90) Operating Profit 70 130 340 85 Operating Profit Margin 2.3 4.3 pts 2.7 0.7 pt (% ) Slide 8 4
THE PARENT AI RLI NE COMPANY COST COMPOSI TI ON – FY2014/ 15 Staff 1,540.2 (-) Passenger Costs 676.7 (+ 0.1% pt) Fuel Cost Post Hedging 4,536.2 (-1.5% pts) AMO Costs 655.7 (-0.1% pt) LPO* Charges 594.8 (-) Handling Charges 876.2 (+ 0.1% pt) Others 1,280.5 Aircraft Depreciation & Lease Rentals (+ 0.5% pt) 1,917.9 (+ 0.9% pt) * Landing, Parking and Overflying Slide 9 THE PARENT AI RLI NE COMPANY FUEL PRI CE AND EXPENDI TURE - TREND Fuel Price After Hedging Fuel Cost after hedging Fuel Price before hedging Fuel Price after hedging ($ million) (USD/ BBL) 136 1,800 140 133 127 126 124 130 135 123 119 121 1,600 120 123 124 121 122 110 115 100 94 99 1,400 100 102 90 103 98 90 93 90 1,268 88 74 1,200 80 1,205 1,194 1,182 1,174 1,156 1,150 70 1,000 60 1,043 1,011 939 50 924 899 851 800 40 30 600 20 10 400 0 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 09/ 10 10/ 11 11/ 12 12/ 13 13/ 14 14/ 15 Slide 10 5
THE PARENT AI RLI NE COMPANY FUEL EXPENDI TURE – FY2014/ 15 $M Lower 5,000 weighted 4,772 average -91 Hedging fuel price loss vs -236 gain last 4,536 (-4.9% ) 1.9% + 14 + 47 year Lower 4,500 Others uplift Stronger US Dollar 4,000 -734 + 528 Volume Price Hedging Others FY13/ 14 Exchange FY14/ 15 Slide 11 THE PARENT AI RLI NE COMPANY UNI T COST ANALYSI S – FY2014/ 15 ¢/ ask 10 9.1 8.9 8 4.0 Unit Fuel Cost (-7.5% ) 3.7 6 1.3 (-) Unit Staff Cost 1.3 4 2 Unit Other Cost (+ 2.6% ) 3.8 3.9 0 13/ 14 14/ 15 Slide 12 6
SI A GROUP FY2014/ 15 RESULTS GROUP REVENUE – FY2014/ 15 FY13/ 14 FY14/ 15 ($ million) 4,099 4,099 Full Year 4,000 Full Year 3,905 3,914 3,901 3,880 3,880 Revenue Revenue 3,875 3,840 $15,209M $15,566M 3,750 3,682 3,708 3,628 Year-on-Year Year-on-Year $35M $322M 3,500 -0.2% + 2.1% Q1 Q2 Q3 Q4 Slide 14 7
GROUP EXPENDI TURE – FY2014/ 15 ($ million) FY13/ 14 FY14/ 15 4,000 3,953 3,953 Full Year Full Year 3,814 Expenditure Expenditure 3,788 3,788 3,773 3,772 3,758 $14,790M $15,156M 3,724 3,750 3,689 3,642 3,603 Year-on-Year Year-on-Year 3,500 $195M $171M -1.3% + 1.1% Q1 Q2 Q3 Q4 Slide 15 GROUP OPERATI NG PROFI T – FY2014/ 15 Full Year Full Year ($ million) 1,500 Op Profit Op Profit $419M $410M 1,271 Year-on-Year Year-on-Year 1,000 $160M $151M + 61.8% + 58.3% 419 410 500 410 286 259 229 0 10/ 11 11/ 12 12/ 13 13/ 14 14/ 15 Slide 16 8
CONTRI BUTI ON TO GROUP OPERATI NG PROFI T – FY2014/ 15 ($ million) % Change 14/ 15 13/ 14 Change + 32.8 Singapore Airlines 340 256 + 84 - 27.6 SI A Engineering 84 116 - 32 SilkAir 41 35 + 6 + 17.1 + 78.0 SI A Cargo (22) (100) + 78 Slide 17 GROUP NET PROFI T – FY2014/ 15 Full Year Full Year ($ million) Net Profit Net Profit 1,250 $368M $368M 1,092 1,000 Year-on-Year + $9M 750 + 2.5% 500 368 379 359 336 250 0 10/ 11 11/ 12 12/ 13 13/ 14 14/ 15 Slide 18 9
GROUP PROFI T ATTRI BUTABLE TO OWNERS OF PARENT – FY2014/ 15 ($ million) 600 Higher Higher operating share of profit losses 500 Lower share of + 73 -93 profits -84 400 368 + 9 359 -42 Gain vs (+ 2.5% ) + 4 Expense + 151 loss last vs credit year 300 last year 0 Operating Associates FY14/ 15 FY13/ 14 JVs Exceptional Others profit Tax items Slide 19 FLEET DEVELOPMENT – SI A No. of Aircraft Operating Fleet at 31 March 15 105 I N: Delivery of A350-900 + 3 Delivery of A330-300 + 3 Entry of A330-300 into service + 1 Delivery of B777-300ER + 2 OUT: Decommissioned A330-300 - 4 Decommissioned B777-300 - 1 Decommissioned B777-200 - 2 Decommissioned B777-200ER - 1 Operating Fleet at 31 March 16 106 Slide 20 10
FLEET DEVELOPMENT – SLK No. of Aircraft Operating Fleet at 31 March 15 27 I N: Delivery of B737-800 + 5 OUT: Decommissioned A320-200 - 2 Decommissioned A319-100 - 1 Operating Fleet at 31 March 16 29 Slide 21 FLEET DEVELOPMENT – SCOOT No. of Aircraft Operating Fleet at 31 March 15 6 I N: Delivery of B787-8 + 5 Delivery of B787-9 + 4 OUT: Decommissioned B777-200 - 4 Operating Fleet at 31 March 16 11 Slide 22 11
FLEET DEVELOPMENT – TI GER No. of Aircraft Operating Fleet at 31 March 15 24 OUT: Decommissioned A320 - 1 Operating Fleet at 31 March 16 23 Slide 23 GROUP CAPI TAL EXPENDI TURE FY15/ 16 FY16/ 17 FY17/ 18 FY18/ 19 FY19/ 20 Aircraft 2,700 3,000 4,400 4,800 4,700 Other Assets 200 150 150 150 150 Total 2,900 3,150 4,550 4,950 4,850 Slide 24 12
GROUP FUEL HEDGI NG POSI TI ON For the period Jet Fuel Brent Apr 15 to Mar 16 Percentage hedged 40.9 4.0 (% ) Average hedged price 106 102 (USD/ BBL - Jet Fuel) Slide 25 DI VI DENDS – FY2014/ 15 14/ 15 13/ 14 Earnings Per Share (¢) 31.4 30.6 I nterim Dividend Per Share (¢) 5.0 10.0 Proposed Final Dividend Per 17.0 11.0 Share (¢) Proposed Special Dividend Per - 25.0 Share (¢) Total Dividend Per Share (¢) 22.0 46.0 Slide 26 13
OUTLOOK FY2015/ 16 CHALLENGES 1 I ntense Competition 2 Economic Uncertainty 3 Currency Fluctuations Slide 28 14
STRATEGY Network FSC Product Competition Service LCC Group Competition Portfolio Geography Multi-Hubs Revenue New Revenue Streams New Business Slide 29 NETWORK SAS Air Canada Lufthansa JetBlue Turkish Airlines Virgin America Virgin Atlantic SIN EUR AME SilkAir SEA ANA EGYPTAIR Asiana Airlines Ethiopian Airlines EVA Air South African Airways Shenzhen Airlines Virgin Australia WAA Air New Zealand NA SWP Slide 30 15
NETWORK Codeshare FY14/ 15 SQ SQ+ MI Partners Destinations 180 (+ 45% ) 60 100 (ex-SIN) (ex-SIN) Weekly 8,081 (+ 59% ) Frequencies 741 1,097 Slide 31 PRODUCT Next Generation Seat Products 8 new B777-300ERs USD325M retrofit of 19 existing B777-300ERs First Class Business Class Added privacy Industry’s widest full-flat bed Ergonomic Seat 28” width 35” width 78” length Increased length of 82” More stowage and greater incline Slide 32 16
PRODUCT Premium Economy Class Entry Into Service: 9 August 2015 Product to be introduced on A380s, 777-300ERs and A350s Total investment estimated at USD80M Slide 33 PRODUCT New website progressively delivered via beta site Roll-out began Mar 2015 and will take place across this and next year Improved user-experience through improved aesthetic design, intuitive flows, mobile-optimised pages Launched: Internet Check-in (ICE) flow Promotions section Flight Status, Flight Schedules, Seat Selection Upcoming: Improved commercial and redemption booking (3Q FY15/16) Slide 34 17
PRODUCT New mobile and tablet apps as part of overall delivery of enhanced digital experience First phase mobile app launch: 23 Apr 2015 First phase tablet app launch: 1Q FY15/16 Launched: Contextual Homescreen Mobile Boarding Pass / iOS Passbook Apple Watch Upcoming: Deals and Offers Day of Travel Tablet Slide 35 PRODUCT SilverKris Lounge (SKL) Development New SKL in Hong Kong and London started operations General increase in Hong Kong SKL SPS scores post-renovation Upcoming SKL development: Manila, Brisbane, Bangkok New HKG SKL New LHR SKL Slide 36 18
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