17 May 2018 Slide 1 THE PARENT AIRLINE Q4 AND FY17/18 RESULTS - PowerPoint PPT Presentation

86 TH SIA BUSINESS MEETING Q4 and FY2017-18 Results 17 May 2018 Slide 1

THE PARENT AIRLINE Q4 AND FY17/18 RESULTS

THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE % Q4 % Change FY17/18 FY17/18 Change Available Seat-KM (million) 29,074 +0.8 118,127 +0.4 Revenue Pax-KM (million) 23,587 +1.4 95,855 +3.2 Passenger Load Factor (%) 81.1 +0.5 pt 81.1 +2.1 pts Passenger Yield 10.3 +1.0 10.2 -1.0 (¢/pkm) Revenue per ASK 8.4 +2.4 8.3 +1.2 (¢/ask) 8.4 Passenger Unit Cost 8.7 -1.1 +1.2 (¢/ask) -3.2 5.9 +1.7 Passenger Unit Ex-Fuel Cost 6.0 (¢/ask) Passenger Breakeven Load 84.5 -1.8 pts 82.4 +1.8 pts Factor (%) Slide 3

THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE Monthly Pax Yields (¢/pkm) FY15/16 FY16/17 FY17/18 11.5 11.2 11.1 11.0 11.0 10.8 10.8 10.7 10.7 10.7 10.7 10.7 10.6 10.5 10.5 10.4 10.5 10.4 10.6 10.3 10.3 10.3 10.2 10.4 10.4 10.3 10.3 10.2 10.2 10.2 10.2 10.2 10.1 10.1 10.1 10.0 9.8 9.8 9.5 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Slide 4

THE PARENT AIRLINE COMPANY RESULTS Better/ Better/ Q4 (Worse) (Worse) FY17/18 FY17/18 $million $million $million $million Total Revenue 2,934 221 11,584 490 (173) Total Expenditure 2,797 (43) 10,881 (25) 2,971 (77) - Net Fuel Cost 771 Fuel Cost 835 (98) 3,044 (419) Fuel Hedging Gain (64) 73 (73) 342 (18) - Ex-fuel Cost 2,026 7,910 (96) Operating Profit 137 178 703 317 6.2 pts Operating Profit Margin 4.7 6.1 2.6 pts (%) Slide 5

THE PARENT AIRLINE COMPANY REVENUE BREAKDOWN FY17/18 ($’M) Passenger Flown Revenue 9,816.6 (+209.7, +2.2%) Bellyhold Revenue from SIA Cargo 84.7% 975.1 8.4% (+71.7, +7.9%) Passenger Other Revenue 493.4 (+83.1, +20.3%) Others 298.7 (+125.1, +72.1%) Slide 6

THE PARENT AIRLINE COMPANY COST COMPOSITION FY17/18 ($’M) Staff Cost Handling Charges 1,762.3 922.9 (+89.6, +5.4%) AMO Costs (+11.8, +1.3%) 724.3 LPO* Charges (-60.4, -7.7%) 16.2% 630.5 15.6% 7.3% 6.6% 8.5% 8.5% (+27.3, +4.5%) Aircraft Depreciation 5.7% 5.8% 17.3% 16.7% and Lease Rentals 5.9% 6.3% 1,819.0 Passenger Costs (-35.0, -1.9%) 644.4 12.3% 13.0% 27.0% (-25.3, -3.8%) 27.3% Fuel Cost Post Others Hedging 1,406.2 2,971.0 (+87.3, +6.6%) (+77.5, +2.7%) *Landing, Parking and Overflying Slide 7

SIA GROUP Q4 AND FY17/18 RESULTS

GROUP REVENUE ($ million) FY16/17 FY17/18 FY17/18 4,200 4,077 Revenue 4,017 4,000 $15,806M 3,864 3,848 3,847 3,800 3,711 3,658 3,653 Year-on-Year 3,600 $937M +6.3% 3,400 3,200 3,000 Q1 Q2 Q3 Q4 Slide 9

GROUP EXPENDITURE ($ million) FY16/17 FY17/18 FY17/18 4,200 Expenditure 4,000 $14,749M 3,803 3,800 3,747 3,683 Year-on-Year 3,616 3,583 3,554 3,600 3,544 $503M 3,465 +3.5% 3,400 3,200 3,000 Q1 Q2 Q3 Q4 Slide 10

GROUP OPERATING PROFIT ($ million) FY17/18 1,200 1,057 Op Profit 1,000 $1,057M 800 681 Year-on-Year 623 600 $434M 410 +69.7% 400 259 200 0 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Slide 11

GROUP OPERATING PROFIT ($ million) 1,500 +92 -152 +91 -88 +52 1,400 +694 One-offs: -355 • KrisFlyer 1,300 Higher Lower Higher Higher breakage engineering rentals depreciation net fuel revenue revenue on costs (+178) 1,200 aircraft • Compensation for changes in 428 aircraft delivery 1,100 +100 1,057 slots (+65) • Absence of 1,000 ticket breakage recognised last year (-151) Other ex-fuel costs +434 900 largely from: (+69.7%) • Handling charges (-102) • Staff costs (-93) 800 • Commission & incentives (-50) • Landing & parking (-44) 700 266 • Higher FX/revaluation 623 loss (-30) 600 Higher pax & cargo flown revenue 500 FY16/17 Pax & Engineering One-offs Fuel Aircraft Depreciation Other Ex- Others FY17/18 Cargo Rev leases Fuel Costs Flown Rev Slide 12

GROUP FUEL EXPENDITURE Composition of Increase in Fuel Cost ($ million) (After Hedging) 4,600 -439 +612 4,400 4,200 +59 -80 4,000 3,899 Hedging +152 Higher uplift Weaker gain 3,800 3,747 (+4.1%) USD versus against loss SGD Higher weighted 3,600 average fuel price 3,400 FY16/17 Price Hedging Volume Exchange FY17/18 Slide 13

CONTRIBUTION TO GROUP OPERATING PROFIT ($ million) % Change FY17/18 FY16/17 Change + 82.1 Singapore Airlines 703 386 317 - 57.4 101 SilkAir 43 -58 67 + 14.9 Scoot 77 10 3 n.m. SIA Cargo 148 145 + SIAEC 76 72 4 5.6 Slide 14

GROUP PROFIT ATTRIBUTABLE TO OWNERS OF PARENT ($ million) FY17/18 1,000 893 Net Profit 804 $893M 800 600 Year-on-Year $533M 368 360 400 359 +148.1% 200 0 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Slide 15

GROUP PROFIT ATTRIBUTABLE TO OWNERS OF PARENT ($ million) 1,100 Higher taxation -87 +18 1,000 +38 Net interest +74 expense vs 893 income last 900 Lower year +61 NCI +434 Share of -57 +52 800 losses & profits of • Gain on assoc. & disposal Absence of: 700 JVs vs losses • SIA Cargo (+48) provision for • Lower +533 fines (+132) 600 impairment (+148.1%) • Writedown of aircraft of Tigerair (+13) brand & 500 trademark (+98) • Disposal of 400 360 HAESL & special Higher dividend 300 operating (-178) profit 200 FY16/17 Operating Net Absence of Aircraft, Associates Non- Others Taxation FY17/18 profit Interest last year's spares & & JVs Controlling one-offs spare engines Interests Slide 16

DIVIDENDS – FY17/18 FY17/18 FY16/17 Earnings Per Share (¢) 75.5 30.5 Interim Dividend Per Share (¢) 10.0 9.0 Proposed Final Dividend Per 30.0 11.0 Share (¢) Total Dividend Per Share (¢) 40.0 20.0 Slide 17

THANK YOU Slide 18