THE PARENT AI RLI NE THE PARENT AI RLI NE 1H FY2013/ 14 1H FY2013/ - PDF document

Singapore Airlines Group Singapore Airlines Group Analyst/ Media Briefing HALF YEAR FY2013- HALF YEAR FY2013 -14 RESULTS 14 RESULTS 13 November 2013 13 November 2013 THE PARENT AI RLI NE THE PARENT AI RLI NE 1H FY2013/ 14 1H FY2013/ 14 RESULTS RESULTS

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY RESULTS RESULTS – – 2Q & 1H FY13/ 14 2Q & 1H FY13/ 14 Better/ Better/ (Worse) (Worse) 2Q/ 13 1H/ 13 $million $million % $million $million % Total Revenue 3,222 81 2.6 6,382 137 2.2 Total Expenditure 3,125 (68) (2.2) 6,196 (120) (2.0) - Fuel Cost 1,280 (39) (3.2) 2,451 33 1.3 - Fuel Hedging Gain (44) 30 n.m. (9) 19 n.m. - Ex-fuel Cost 1,889 (59) (3.2) 3,754 (172) (4.8) Operating Profit 97 13 15.3 186 17 10.0 Operating Profit 3.0 0.3 pt 2.9 0.2 pt Margin (% ) Slide 3 THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE – – 2Q & 1H FY13/ 14 2Q & 1H FY13/ 14 OPERATI NG PERFORMANCE % % 2Q/ 13 Change 1H/ 13 Change Available Seat-KM 30,910 + 3.2 60,918 + 3.4 (million) Revenue Pax-KM 25,064 + 4.9 48,462 + 3.3 (million) Passenger Load 81.1 + 1.3 pts 79.6 - Factor (% ) Slide 4

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE OPERATI NG PERFORMANCE – – 2Q & 1H FY13/ 14 2Q & 1H FY13/ 14 % % 2Q/ 13 Change 1H/ 13 Change Passenger Yield 11.0 -3.5 11.0 -3.5 (¢/ pkm) Passenger Unit Cost 9.1 - 9.1 - (¢/ ask) Passenger Breakeven 82.7 + 2.9 pts 82.7 + 2.9 pts Load Factor (% ) Slide 5 THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE OPERATI NG PERFORMANCE Passenger Load Factor Breakeven Load Factor (% ) 88 84 79.4 80 79.6 79.6 75.6 76 77.5 72 68 0 1H 09/ 10 1H 10/ 11 1H 11/ 12 1H 12/ 13 1H 13/ 14 Slide 6

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE OPERATI NG PERFORMANCE Passenger Load Factor Breakeven Load Factor (% ) 88 86.0 82.7 84 79.8 79.4 80 78.0 79.6 79.6 75.6 76 77.5 75.4 72 68 0 1H 09/ 10 1H 10/ 11 1H 11/ 12 1H 12/ 13 1H 13/ 14 Slide 7 THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE OPERATI NG PERFORMANCE Passenger Load Factor Breakeven Load Factor (% ) 88 86.0 82.7 84 -10.4 79.8 -3.1 79.4 80 -0.2 78.0 -0.5 79.6 79.6 4.0 75.6 76 77.5 75.4 72 68 0 1H 09/ 10 1H 10/ 11 1H 11/ 12 1H 12/ 13 1H 13/ 14 Slide 8

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY MONTHLY PASSENGER YI ELD MONTHLY PASSENGER YI ELD Monthly Pax Yields (I ncluding Fuel Surcharge) ¢/ pkm 2009-10 2012-13 2013-14 13 12 11.6 11.6 11.5 11.4 11.4 11.4 11.3 11.3 11.3 11.2 11.2 11.0 11.3 11.3 11 11.2 11.1 11.1 11.0 10.9 10.8 10.8 10.7 10.5 10.4 10.4 10 10.2 10.0 9.9 9.8 9.7 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Slide 9 THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY FUEL PRI CE AND EXPENDI TURE PRI CE AND EXPENDI TURE - - TREND TREND FUEL Fuel Price before hedging Fuel Cost before hedging ($ million) (USD/ BBL) 2,000 160 149 160 150 133 1,800 140 132 126 126 130 1,743 132 1,600 120 120 1,557 110 98 1,400 100 90 1,280 1,262 1,200 1,243 1,241 80 1,233 61 1,171 70 1,094 1,000 60 64 50 800 40 30 600 649 20 631 10 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Slide 10

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY COST COMPOSI TI ON – COST COMPOSI TI ON – 1H FY13/ 14 1H FY13/ 14 Others 20.7% (+ 1.0 pt) Fuel Cost Post Hedging 39.4% (-1.7 pts) Passenger Costs 5.4% Handling Charges 7.1% Aircraft Staff Depreciation & 13.0% (-0.2 pt) Lease Rentals 14.4% (+ 0.9 pt) Slide 11 THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY TOP 5 EXPENDI TURE – TOP 5 EXPENDI TURE – 1H FY13/ 14 1H FY13/ 14 Fuel After 2,442 (-2.1% , -$53M) Hedging Aircraft Depr. & 892 (+ 8.9% , + $73M) Lease Rentals 1H 2013-14 805 (+ 0.4% , + $3M) Staff 1H 2012-13 Handling 438 (+ 1.2% , + $5M) Charges 337 (+ 1.9% , + $6M) Passenger Cost $M 0 500 1,000 1,500 2,000 2,500 3,000 Slide 12

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY FUEL FUEL EXPENDI TURE EXPENDI TURE – – 1H FY13/ 14 1H FY13/ 14 ($ million) 2,800 Lower weighted Higher average volume Hedging fuel price uplifted gain vs 2,600 loss last 2,495 year - 53 + 80 2,442 - 114 (-2.1% ) - 19 2,400 Volume H1/ 12 Price Hedging H1/ 13 Slide 13 THE GROUP THE GROUP 1H FY2013/ 14 1H FY2013/ 14 RESULTS RESULTS

GROUP REVENUE – 1H FY2013/ 14 2012/ 13 2013/ 14 Half Year ($ million) Revenue 4,000 3,901 3,840 + 107 $7,741M + 63 3,794 3,777 + 2.8% + 1.7% 3,750 Year-on-Year 3,500 $170M + 2.2% 3,250 3,000 2,750 0 Q1 Q2 Slide 15 GROUP EXPENDI TURE – 1H FY2013/ 14 2012/ 13 2013/ 14 Half Year ($ million) Expenditure 4,000 3,814 + 90 $7,572M 3,705 3,758 3,724 + 53 + 2.4% 3,750 + 1.4% Year-on-Year 3,500 $143M + 1.9% 3,250 3,000 2,750 0 Q1 Q2 Slide 16

GROUP OPERATI NG PROFI T – 1H FY2013/ 14 2012/ 13 2013/ 14 Half Year ($ million) Op Profit 150 $169M 125 Year-on-Year 100 $27M 87 82 + 17 + 19.0% + 10 70 72 75 + 24.3% + 13.9% 50 25 0 Q1 Q2 Slide 17 CONTRI BUTI ON TO GROUP OPERATI NG CONTRI BUTI ON TO GROUP OPERATI NG PROFI T – PROFI T – 1H FY13/ 14 ($ million) 1H FY13/ 14 ($ million) 1H/ 13 1H/ 12 Change % Change Singapore Airlines 186 169 + 17 + 10.1 SI A Engineering 56 66 - 10 - 15.2 SilkAir 22 37 - 15 - 40.5 + SI A Cargo (71) (99) + 28 28.3 Slide 18

GROUP NET PROFI T – 1H FY2013/ 14 2012/ 13 2013/ 14 Half Year ($ million) Net Profit 200 $282M 160 150 Year-on-Year 122 + 70 $114M + 77.8% + 67.9% + 44 90 100 + 56.4% 78 50 0 Q1 Q2 Slide 19 GROUP NET PROFI T – 1H FY2013/ 14 ($ million) 300 282 + 19 + 22 + 18 250 Lower + 28 taxation Exceptional + 114 + 27 Higher and 200 items + 67.9% 168 share of others Gain on profits Higher disposal 150 from operating of aircraft associated profit vs and JVs 100 loss last year 50 0 Operating Associates Others Aircraft Exceptional 1H/ 12 1H/ 13 Profit Disposal and JV I tems Slide 20

GROUP RESULTS GROUP RESULTS – 1H FY13/ 14 – 1H FY13/ 14 1H/ 13 1H/ 12 EBI TDAR Per Share ($) 1.25 1.11 Earnings Per Share (¢) 24.0 14.3 I nterim Dividend Per 10.0 6.0 Share (¢) At 30 Sep 13 At 31 Mar 13 Net Asset Value Per 11.30 11.15 Share ($) Slide 21 FLEET DEVELOPMENT - SI A No. of Aircraft Operating Fleet at 30 September 13 103 I N: Delivery of A330-300 + 2 Delivery of B777-300ER + 1 Reinstatement of B777-200ER + 2 OUT: Decommissioned B777-200 - 1 OUT: Decommissioned A340-500 - 4 Operating Fleet at 31 March 14 103 Slide 22

FLEET DEVELOPMENT - SLK No. of Aircraft Operating Fleet at 30 September 13 23 I N: Delivery of A320-200 + 1 Delivery of B737-800 + 2 OUT: Decommissioned A320-200 - 2 Operating Fleet at 31 March 14 24 Slide 23 FLEET DEVELOPMENT - SCOOT No. of Aircraft Operating Fleet at 30 September 13 5 I N: Lease of B777-200 + 1 Operating Fleet at 31 March 14 6 Slide 24

GROUP CAPI TAL EXPENDI TURE FY14/ 15 FY15/ 16 FY16/ 17 FY17/ 18 FY18/ 19 Aircraft 2,250 3,100 2,900 4,050 4,350 Other Assets 200 150 100 150 150 Total 2,450 3,250 3,000 4,200 4,500 Slide 25 GROUP FUEL HEDGI NG POSI TI ON  Percentage hedged for period Oct 13 to Mar 14 60 (% )  Avg hedged price for period Oct 13 to Mar 14 118 (USD/ BBL - Jet Fuel) Slide 26

BUSI NESS OUTLOOK BUSI NESS OUTLOOK OUTLOOK OUTLOOK  High and volatile fuel price  I ntense competition  Uncertain global economy Slide 28

MEETI NG THE MEETI NG THE CHALLENGES CHALLENGES MEETI NG THE CHALLENGES MEETI NG THE CHALLENGES  Continued Focus on Three Pillars Slide 30

FOCUS ON THREE PI LLARS FOCUS ON THREE PI LLARS Product Service Network Leadership Excellence Connectivity Slide 31 PRODUCT LEADERSHI P PRODUCT LEADERSHI P  Next Generation Cabin Products Slide 32

PRODUCT LEADERSHI P PRODUCT LEADERSHI P  New Design Concept for SilverKris Lounge Gallery Space Planned improvements to lounges in: Gallery Space  Sydney  London  Hong Kong Tasting Room  Singapore T3  Kuala Lumpur  Manila  San Francisco  Dining Area Singapore T2 Slide 33 SERVI CE EXCELLENCE SERVI CE EXCELLENCE  Customer Experience Management Customer Customer Experience Experience Management Management  Using CEM to deliver proactive and personalized service for all touch-points Slide 34

SERVI CE EXCELLENCE SERVI CE EXCELLENCE  Loyalty Enhancements  Enhancement of Reserve  Pay with KrisFlyer Miles Value   Guaranteed Economy Expanded KrisFlyer partnerships Class booking  Access to lounges on arrival for Solitaire members Slide 35 SERVI CE EXCELLENCE SERVI CE EXCELLENCE  SAA website improvement SAA Commercial Bookings 100,000 Booking Counts 90,000 + 33% 80,000 + 52% 70,000 60,000 50,000 Apr May Jun Jul Aug Sep SAA R4 (Apr 2013 – Mar 2014) SAA R4 (Apr 2011 – Mar 2012) SAA R3 (Apr 2010 – Mar 2011) Slide 36