SI A ANALYST/ MEDI A BRI EFI NG FY2015-16 Results 13 May 2016 THE PARENT AI RLI NE FY2015/ 16 RESULTS 1
THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE – FY2015/ 16 % % 4Q/ 15 Change 15/ 16 Change Available Seat-KM 29,026 -0.2 118,367 -1.4 (million) Revenue Pax-KM 22,788 + 2.9 94,267 + 0.1 (million) Passenger Load 78.5 + 2.4 pts 79.6 + 1.1 pts Factor (% ) Slide 3 THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE – FY2015/ 16 % % 4Q/ 15 Change 15/ 16 Change Passenger Yield 10.6 -7.0 10.6 -5.4 (¢/ pkm) Slide 4 2
THE PARENT AI RLI NE COMPANY RESULTS – FY2015/ 16 Monthly Pax Yields (I ncluding Fuel Surcharge) 12 ¢/ pkm 2013-14 2014-15 2015-16 11.5 11.5 11.4 11.4 11.4 11.4 11.3 11.3 11.2 11.3 11.1 11.1 11.1 11.1 11.2 11 10.9 11.1 10.9 10.8 11.0 11.0 10.8 10.9 10.9 10.9 10.8 10.7 10.7 10.7 10.7 10.6 10.6 10.5 10.5 10.4 10.1 10 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Slide 5 THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE – FY2015/ 16 % % 4Q/ 15 Change 15/ 16 Change Passenger Yield 10.6 -7.0 10.6 -5.4 (¢/ pkm) -7.8 Passenger Unit Cost 8.3 8.5 -4.5 (¢/ ask) + 5.5 Passenger Unit Ex- 5.8 5.5 + 5.8 Fuel Cost (¢/ ask) -0.6 pt Passenger Breakeven 78.3 80.2 + 0.7 pt 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 80.2 79.5 -3.1 80 -1.4 -0.6 -1.0 78.0 79.3 79.6 78.9 -0.6 78.5 77.4 75 70 65 15/ 16 11/ 12 12/ 13 13/ 14 14/ 15 Slide 7 THE PARENT AI RLI NE COMPANY RESULTS – FY2015/ 16 Better/ Better/ (Worse) (Worse) 4Q/ 15 15/ 16 $million $million $million $million Total Revenue 2,789 (213) 11,686 (732) 241 877 Total Expenditure 2,691 11,201 - Fuel Cost 486 238 2,637 1,442 - Fuel Hedging Loss 235 926 (469) 52 - Ex-fuel Cost 1,970 (49) 7,638 (96) Operating Profit 98 28 485 145 Operating Profit Margin 3.5 1.2 pts 4.2 1.5 pts (% ) Slide 8 4
THE PARENT AI RLI NE COMPANY COST COMPOSI TI ON – FY2015/ 16 Cost Composition ($M) Staff Costs Handling Charges 1,596.0 (+ 55.8, + 3.6% ) 889.6 (+ 13.4, + 1.5% ) AMO Costs LPO* Charges 14.3% 7.9% 750.9 (+ 95.2, + 14.5% ) 584.4 (-10.4, -1.7% ) 5.2% 6.7% Passenger Costs 6.0% 669.9 (-6.8, -1.0% ) Aircraft Depreciation 17.1% 11.0% & Lease Rentals 1,914.5 (-3.4, -0.2% ) Others 31.8% 1,232.4 (-48.1, -3.8% ) Fuel Cost Post Hedging 3,563.3 (-972.9, -21.4% ) * 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) 137 134 1800 140 132 129 133 123 121 130 119 135 131 129 132 131 1600 120 122 110 115 103 98 1400 100 102 90 90 82 1,268 1200 1,254 80 1,244 1,236 1,231 1,227 1,205 1,212 1,206 67 1,194 1,179 1,182 1,174 1,158 77 1,150 70 74 67 1000 60 1,043 1,011 994 60 962 50 886 800 40 45 30 721 600 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 10/ 11 11/ 12 12/ 13 13/ 14 14/ 15 15/ 16 Slide 10 5
THE PARENT AI RLI NE COMPANY FUEL EXPENDI TURE – FY2015/ 16 Lower $M weighted average 5,000 fuel price 4,536 -973 Higher (-21.4% ) hedging 4,000 3,563 + 34 loss Stronger 0.6% US Dollar higher volume 3,000 + 469 + 206 -1,682 Price Exchange Hedging FY14/ 15 Volume FY15/ 16 Slide 11 THE PARENT AI RLI NE COMPANY UNI T COST ANALYSI S – FY2015/ 16 ¢/ ask 10 8.9 8.5 8 3.7 Unit Fuel Cost 3.0 (-18.9% ) 6 1.4 (+ 7.7% ) Unit Staff Cost 1.3 4 2 4.1 Unit Other Cost (+ 5.1% ) 3.9 0 14/ 15 15/ 16 Slide 12 6
SI A GROUP FY2015/ 16 RESULTS GROUP REVENUE – FY2015/ 16 Full Year FY14/ 15 FY15/ 16 Revenue ($ million) 4,099 3,941 $15,228M 4,000 3,905 3,880 3,845 Year-on-Year $338M 3,733 3,709 3,750 -2.2% 3,682 3,500 Q1 Q2 Q3 Q4 Slide 14 7
GROUP EXPENDI TURE – FY2015/ 16 Full Year Expenditure ($ million) FY14/ 15 FY15/ 16 $14,547M 4,000 3,953 Year-on-Year 3,788 3,773 $609M 3,716 3,750 -4.0% 3,653 3,642 3,622 3,556 3,500 Q1 Q2 Q3 Q4 Slide 15 GROUP OPERATI NG PROFI T – FY2015/ 16 Full Year ($ million) Op Profit 800 $681M 681 600 Year-on-Year $271M 410 + 66.1% 400 286 259 229 200 0 11/ 12 12/ 13 13/ 14 14/ 15 15/ 16 Slide 16 8
CONTRI BUTI ON TO GROUP OPERATI NG PROFI T – FY2015/ 16 ($ million) Change % Change 15/ 16 14/ 15 + 42.6 Singapore Airlines 485 340 + 145 SI A Engineering 104 84 + 20 + 23.8 SI A Cargo (50) (22) - 28 - 127.3 41 + 50 + 122.0 SilkAir 91 n.m. (67) + 95 Scoot 28 n.m. Tiger Airways (9) + 23 14 Slide 17 GROUP NET PROFI T – FY2015/ 16 Full Year Full Year ($ million) Net Profit Net Profit 1,00 $368M $804M 804 800 Year-on-Year + $436M 600 + 118.5% 379 400 368 359 336 200 0 11/ 12 12/ 13 13/ 14 14/ 15 15/ 16 Slide 18 9
GROUP PROFI T ATTRI BUTABLE TO OWNERS OF PARENT – FY2015/ 16 ($ million) No impairment of China Cargo Airlines this year: + 64 No remeasurement gain from Tiger consolidation this year: -120 1000 + 436 + 89 -84 (+ 118.5% ) Refund of -3 + 102 804 fines to Higher 800 Higher SI A Share of operating tax Cargo profits profit expenses vs. share Higher of losses dividends 600 last year from -56 investment + 117 400 368 + 271 0 Operating Exceptions Dividend Assocs Tax FY14/ 15 Fines Others FY15/ 16 profit & JVs Slide 19 FLEET DEVELOPMENT – PASSENGER AI RLI NE SI A SilkAir Scoot Tigerair Operating Fleet as at 31 Mar 2016 102 29 10 23 I N: Entry into service A350-900 + 12 Entry into service 737-800 + 3 Entry into service 787-8 + 2 OUT: Decommissioned 777-300 -1 Decommissioned A330-300 -4 Operating Fleet as at 31 Mar 2017 109 32 12 23 Slide 20 10
FLEET DEVELOPMENT – SI A CARGO No. of Aircraft Operating Fleet as at 31 March 2016 9 OUT: Decommissioned 747-400F -2 Operating Fleet as at 31 March 2017 7 Slide 21 GROUP CAPI TAL EXPENDI TURE FY16/ 17 FY17/ 18 FY18/ 19 FY19/ 20 FY20/ 21 Aircraft 3,200 4,500 4,900 4,800 3,600 Other Assets 150 150 150 100 150 Total 3,350 4,650 5,050 4,900 3,750 Slide 22 11
GROUP FUEL HEDGI NG POSI TI ON Apr’16 to Mar’17 (FY2016-17) Jet Fuel Brent Percentage hedged (% ) 25 6 Average hedged price (USD/ BBL) 83 64 Apr’16 to Jun’16 (Q1 FY2016-17) Jet Fuel Brent Percentage hedged (% ) 42 - Average hedged price (USD/ BBL) 87 - Slide 23 DI VI DENDS – FY2015/ 16 15/ 16 14/ 15 Earnings Per Share (¢) 69.0 31.4 I nterim Dividend Per Share (¢) 10.0 5.0 Proposed Final Dividend Per 35.0 17.0 Share (¢) Total Dividend Per Share (¢) 45.0 22.0 Slide 24 12
STRATEGI C DEVELOPMENTS CHALLENGES 1 Global Economic Uncertainty 2 Oil Price Volatility 3 I ntense Competition Slide 26 13
KEY STRATEGI ES Strengthening our Premium Positioning Portfolio Multi-Hub New Business Opportunities Slide 27 STRENGTHENI NG OUR PREMI UM POSI TI ONI NG PRODUCTS & SERVI CES Premium Economy Class Currently flying to 18 destinations Available on A350-900, A380 & B777-300ER IFE Companion App Preview KrisWorld content and create favourites list pre-flight Control seat-back IFE system Available on A350-900, and progressively on B777-300ER Slide 28 14
STRENGTHENI NG OUR PREMI UM POSI TI ONI NG PRODUCTS & SERVICES SilverKris Lounges New lounge concept introduced in Hong Kong, London, Manila and Sydney Upcoming openings scheduled in Brisbane (May ‘16) and Bangkok (Oct ‘16) ‘Deliciously Wholesome’ Meals Served on selected flights departing from Singapore in all classes Available for pre-order through Book the Cook by Suites, First Class and Business Class customers Slide 29 STRENGTHENI NG OUR PREMI UM POSI TI ONI NG PRODUCTS & SERVI CES Modern Fleet 2016 – Launch of A350-900 2017 – New ground-up cabin products (A380) 2018 – Re-launch of ultra long-range flights with A350-900ULR 2018 – New medium-haul cabin products on A350 & B787-10 Slide 30 15
STRENGTHENI NG OUR PREMI UM POSI TI ONI NG NETWORK Strengthening our key markets New opportunities to grow European and US footprint New Destinations Dusseldorf (21 July ‘16) Canberra & Wellington (20 Sept ‘16) Expanding network and connectivity through partnerships New Codeshare Agreements – Air China, Croatia Airlines, Lufthansa Slide 31 PORTFOLI O Full Enhance connectivity Service Positioning Low Cost Regional Long-Haul Slide 32 16
PRI VATI SATI ON OF TI GER AI RWAYS DELI STI NG COMPLETED ON 11 MAY 2016 Enables: Seamless cooperation in all aspects of the business Commercial Network Full synergies within the SIA activities coordination Group Strengthening of benefits to SIA Group Portfolio Strategy New profit generation Operational and opportunities backroom Slide 33 PORTFOLI O Full Enhance connectivity Service Harness group synergies Extend market reach Positioning Low Cost Regional Long-Haul Slide 34 17
SI A and SilkAir serve 98 destinations The SI A Group serves 122 destinations 18
Recommend
More recommend
