SI A ANALYST/ MEDI A BRI EFI NG Q2 & 1H FY2016/17 Results 4 November 2016 THE PARENT AI RLI NE Q2 & 1H FY2016/ 17 RESULTS 1
THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE % % Q2 16/ 17 Change 1H 16/ 17 Change Available Seat-KM 29,884 -0.7 59,072 -0.9 (million) Revenue Pax-KM 24,027 -4.6 46,164 -3.2 (million) Passenger Load 80.4 -3.3 pts 78.1 -1.9 pts Factor (% ) Slide 3 THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE % % Q2 16/ 17 Change 1H 16/ 17 Change Passenger Yield 10.0 -3.8 10.2 -2.9 (¢/ pkm) Slide 4 2
THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE Monthly Pax Yields (I ncluding Fuel Surcharge) FY14/ 15 FY15/ 16 FY16/ 17 (¢/ pkm) 11.4 11.4 11.4 11.5 11.4 11.5 11.5 11.2 11.1 11.0 11.0 10.9 10.9 10.9 10.8 10.7 10.7 10.6 10.7 10.5 10.7 10.5 10.5 10.4 10.6 10.5 10.3 10.2 10.2 10.2 10.1 9.7 9.5 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Slide 5 THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE % % Q2 16/ 17 Change 1H 16/ 17 Change Passenger Yield 10.0 -3.8 10.2 -2.9 (¢/ pkm) Passenger Unit Cost 8.1 -6.9 8.0 -7.0 (¢/ ask) Passenger Unit Ex- 5.7 + 3.6 5.6 + 5.7 Fuel Cost (¢/ ask) Passenger Breakeven 81.0 -2.7 pts 78.4 -3.5 pts Load Factor (% ) Slide 6 3
THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE (% ) Passenger Load Factor 90 Breakeven Load Factor 85 82.7 81.9 80.7 79.8 -3.1 -1.9 -0.9 80 -0.2 78.4 80.0 79.8 79.6 79.6 -0.3 78.1 75 70 65 60 1H 12/ 13 1H 13/ 14 1H 14/ 15 1H 15/ 16 1H 16/ 17 Slide 7 THE PARENT AI RLI NE COMPANY RESULTS Better/ Better/ (Worse) (Worse) Q2 16/ 17 1H 16/ 17 $million $million $million $million Total Revenue 2,766 (232) 5,564 (343) 413 Total Expenditure 2,687 213 5,288 - Net Fuel Cost 229 1,431 525 733 Fuel Cost 618 99 1,204 296 Fuel Hedging Loss 115 130 227 229 - Ex-fuel Cost 1,954 (16) 3,857 (112) Operating Profit 79 (19) 276 70 (0.4) pt Operating Profit Margin 2.9 5.0 1.5 pts (% ) Slide 8 4
THE PARENT AI RLI NE COMPANY COST COMPOSI TI ON 1H FY16/ 17 ($’M) Handling Charges Staff Cost 452.5 824.8 AMO Costs (+ 8.7, + 2.0% ) (+ 47.2, + 6.1% ) 401.5 (+ 34.5, + 9.4% ) LPO* Charges 299.3 (+ 8.2, + 2.8% ) Aircraft Depreciation and Lease Passenger Costs Rentals 334.4 924.1 (-2.3, -0.7% ) (-19.5, -2.1% ) Others 620.2 Fuel Cost Post (+ 34.9, + 6.0% ) Hedging 1,430.8 (-525.2, -26.9% ) * Landing, Parking and Overflying Slide 9 THE PARENT AI RLI NE COMPANY FUEL EXPENDI TURE Lower ($ million) weighted average 2,000 1,956 fuel price 1,900 1,800 Lower hedging -525 1,700 loss (-26.8% ) 1,600 Weaker Higher -322 USD uplift 1,500 against + 29 1,431 SGD 1,400 -230 -2 1,300 1,200 1H Price Hedging Exchange Volume 1H FY15/ 16 FY16/ 17 Slide 10 5
THE PARENT AI RLI NE COMPANY UNI T COST ANALYSI S (¢/ ask) 10 8.6 8.0 8 3.3 Unit Fuel Cost 2.4 (-27.3% ) 6 (+ 7.7% ) 1.4 Unit Staff Cost 1.3 4 4.2 (+ 5.0% ) 4.0 Unit Other Cost 2 0 1H FY15/ 16 1H FY16/ 17 Slide 11 SI A GROUP Q2 & 1H FY2016/ 17 RESULTS 6
GROUP REVENUE ($ million) 4,000 1H 16/ 17 3,941 Revenue 3,900 $7,305M 3,845 3,800 3,733 3,709 3,700 Year-on-Year Year-on-Year 3,654 3,651 $9M $273M 3,600 -3.6% -0.1% 3,500 Q1 Q2 Q3 Q4 Q1 Q2 FY15/ 16 FY16/ 17 Slide 13 GROUP EXPENDI TURE ($ million) 3,800 1H 16/ 17 Expenditure 3,716 3,700 $7,003M 3,653 3,622 3,600 3,556 3,542 3,500 Year-on-Year Year-on-Year 3,461 $9M $335M 3,400 -0.1% -4.6% 3,300 Q1 Q2 Q3 Q4 Q1 Q2 FY15/ 16 FY16/ 17 Slide 14 7
GROUP OPERATI NG PROFI T ($ million) 1H 16/ 17 400 Op Profit $302M 288 300 193 200 153 Year-on-Year Year-on-Year 129 111 109 $9M $62M 100 -0.1% + 25.8% 0 Q1 Q2 Q3 Q4 Q1 Q2 FY15/ 16 FY16/ 17 Slide 15 CONTRI BUTI ON TO GROUP OPERATI NG PROFI T 1H 16/ 17 1H 15/ 16 Change % Change + 34.0 Singapore Airlines 276 206 + 70 26 + 69.2 SilkAir 44 + 18 (22) n.m. Scoot 6 + 28 (10) n.m. Tiger Airways 11 + 21 - - 52.1 SI A Engineering 23 48 25 (12) n.m. SI A Cargo (45) - 33 Slide 16 8
GROUP PROFI T ATTRI BUTABLE TO OWNERS OF PARENT ($ million) 1H 16/ 17 400 Net Profit 322 305 $322M 282 300 200 168 126 Year-on-Year Year-on-Year 100 $17M $9M -0.1% + 5.6% 0 1H 1H 1H 1H 1H FY12/ 13 FY13/ 14 FY14/ 15 FY15/ 16 FY16/ 17 Slide 17 GROUP PROFI T ATTRI BUTABLE TO OWNERS OF PARENT ($ million) Lower dividends 550 from + 62 investment 500 Higher share + 142 of losses from 450 associates Higher op profit 400 -97 I mpairment Higher of aircraft loss on 350 disposal 322 -59 + 17 305 -21 -10 (+ 5.6% ) 300 Gain on SI AEC’s divestment of HAESL 250 200 1H FY15/ 16 Divestment Operating Dividend Associates I mpairment Disposal of 1H FY16/ 17 of HAESL Profit aircraft, spares & spare engines Slide 18 9
PER SHARE DATA 1H FY16/ 17 1H FY15/ 16 EBI TDAR Per Share ($) 1.43 1.39 Earnings Per Share (¢) 27.2 26.1 I nterim Dividend Per 9.0 10.0 Share (¢) At 30 Sep’16 At 31 Mar’16 Net Asset Value Per 11.20 10.96 Share ($) Slide 19 FLEET DEVELOPMENT – PASSENGER AI RLI NES SI A SilkAir Scoot Tiger Airways Operating Fleet as at 30 Sep 2016 104 30 12 23 I N: A350-900 + 8 737-800 + 1 OUT: 777-300 -1 A330-300 -2 Operating Fleet as at 31 Mar 2017 109 31 12 23 Slide 20 10
FLEET DEVELOPMENT – SI A CARGO No. of Aircraft Operating Fleet as at 30 September 2016 9 OUT: 747-400F -2 Operating Fleet as at 31 March 2017 7 Slide 21 GROUP CAPI TAL EXPENDI TURE ($’million) FY17/ 18 FY18/ 19 FY19/ 20 FY20/ 21 FY21/ 22 Aircraft 4,300 5,300 4,600 4,200 2,600 Other Assets 150 150 150 100 100 Total 4,450 5,450 4,750 4,300 2,700 Slide 22 11
GROUP FUEL HEDGI NG POSI TI ON 2H FY2016/ 17 Jet Fuel Brent Percentage hedged (% ) 29.3 3.0 Average hedged price (USD/ BBL) 68 63 Slide 23 STRATEGI C DEVELOPMENTS 12
CHALLENGES 1 Global Economic Uncertainty 2 Geopolitical Concerns 3 Oil Price Volatility 4 I ntense Competition Slide 25 KEY STRATEGI ES Strengthening Premium Positioning Portfolio Multi-Hub New Business Opportunities Slide 26 13
STRENGTHENI NG PREMI UM POSI TI ONI NG PRODUCTS & SERVI CES SilverKris Lounges Upcoming opening in Bangkok (1Q 2017), featuring new open bar concept and signature screen Premium Economy Class Available on 24 destinations to date, on 6 A350, 19 A380 and 10 B777-300ER aircraft STRENGTHENI NG PREMI UM POSI TI ONI NG PRODUCTS & SERVI CES Teochew Food Promotion Served on selected flights from Singapore from 30 Oct 2016 to 28 Feb 2017 in all classes Iconic dishes such as Cold Crab, Braised Duck and “Orh Nee” (Yam Paste) will be featured New KrisWorld I nteractive Progressively available on the A350 fleet from Nov 2016, and B773ER fleet from Dec 2016 Slide 28 14
STRENGTHENI NG PREMI UM POSI TI ONI NG GAME-CHANGER Airbus A350-900 Boosts long-haul network expansion, with the introduction of non-stop flights to San Francisco and Dusseldorf Launch customer for the A350-900ULR, which will fly non-stop to New York and Los Angeles in 2018 Slide 29 STRENGTHENI NG PREMI UM POSI TI ONI NG NETWORK New Destinations Dusseldorf (Jul 2016) Canberra & Wellington (Sep 2016) New Routes Singapore–San Francisco (Oct 2016) Singapore–Seoul–Los Angeles (Oct 2016) Singapore–Manchester–Houston (Oct 2016) Expanding connectivity through partnerships New Codeshare Agreements – Air China, United, TAP Portugal, S7 Airlines, Air Mauritius 9,857 weekly frequencies on SQ code, ~ 5.7 times more than 1,741 frequencies operated by SQ 15
NEW DESTI NATI ONS & ROUTES Manchester Dusseldorf San Francisco Seoul Houston Los Angeles Singapore Canberra Wellington Singapore Airlines Slide 31 PORTFOLI O NEW DESTI NATI ONS Dusseldorf Dalian Wuxi Sapporo Zhengzhou Athens Amritsar Jaipur Fuzhou Vientiane Luang Prabang Scoot Tigerair Canberra Wellington SilkAir Singapore Airlines Slide 32 16
PORTFOLI O The SI A Group serves 132 destinations in 36 countries Slide 33 PORTFOLI O Budget Aviation Holdings (BAH) BAH was formed on 18 May 2016, following the delisting of Tigerair Integration is ongoing, led by one CEO and with a common P&L Full integration under a single Scoot brand, with a single operating licence, is expected in H2 2017 Customers will benefit from a seamless travel experience Deep integration will also strengthen our position in the budget segment and provide new opportunities for growth Slide 34 17
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