SI NGAPORE AI RLI NES GROUP SI NGAPORE AI RLI NES GROUP ANALYSTS / - - PowerPoint PPT Presentation

SI NGAPORE AI RLI NES GROUP SI NGAPORE AI RLI NES GROUP ANALYSTS / MEDI A BRI EFI NG ANALYSTS / MEDI A BRI EFI NG

FY2008 FY2008-

• 09 RESULTS

09 RESULTS

15 MAY 2009 15 MAY 2009

THE GROUP THE GROUP FY2008 FY2008-

• 09

09 RESULTS RESULTS

GROUP REVENUE GROUP REVENUE – – FY2008/ 09 ($ million) FY2008/ 09 ($ million)

12,013 13,341 14,494 15,973 15,996

12,000 13,000 14,000 15,000 16,000 17,000 2005 2006 2007 2008 2009

Group Revenue

0.1%

5-Year CAGR

+ 7.4%

($ million)

Slide 3

GROUP EXPENDI TURE GROUP EXPENDI TURE – – FY2008/ 09 ($ million) FY2008/ 09 ($ million)

10,696 12,128 13,180 13,848 15,093

8,000 10,000 12,000 14,000 16,000 2005 2006 2007 2008 2009 ($ million)

Group Expenditure

9.0%

5-Year CAGR

+ 9.0%

Slide 4

GROUP OPERATI NG PROFI T GROUP OPERATI NG PROFI T – – FY2008/ 09 ($ million) FY2008/ 09 ($ million)

1,317 1,213 2,125 904 1,314

400 800 1,200 1,600 2,000 2,400 2,800 2005 2006 2007 2008 2009

($ million)

Operating Profit

57.5%

Slide 5

GROUP OPERATI NG PROFI T GROUP OPERATI NG PROFI T – – FY2008/ 09 ($ million) FY2008/ 09 ($ million)

11.0 5.6 13.3 9.1 9.1

400 800 1,200 1,600 2,000 2,400 2,800 2005 2006 2007 2008 2009 2 4 6 8 10 12 14

($ million) (% )

Operating Profit Margin

7.7% pts

Operating Profit

57.5%

Slide 6

CONTRI BUTI ON TO GROUP OPERATI NG CONTRI BUTI ON TO GROUP OPERATI NG PROFI T PROFI T – – FY2008/ 09 FY2008/ 09

SI A $821M (-49.9% ) SATS Group $3M (-2.0% ) SI AEC $10M (+ 9.4% ) SI A Cargo $377M

• 300

300 600 900 1,200 1,500 1,800 2,100 2008 2009

($ million)

$904M $2,125M

6.2% 77.4% 8.2% 4.8% 3.4%

• 27.1%

91.1% 18.9% 12.5% 4.6% SI A Cargo SI A SATS Others SI AEC

Slide 7

4,132 4,379 4,164 3,321

3,000 3,250 3,500 3,750 4,000 4,250 4,500

Q1 Q2 Q3 Q4

GROUP REVENUE GROUP REVENUE – – FY2008/ 09 ($ million) FY2008/ 09 ($ million)

($ million) 2007-08 2008-09

Slide 8

GROUP REVENUE GROUP REVENUE – – FY2008/ 09 ($ million) FY2008/ 09 ($ million)

($ million) 2007-08 2008-09

+ 412

• 112
• 786

+ 510

3,000 3,250 3,500 3,750 4,000 4,250 4,500

Q1 Q2 Q3 Q4

Slide 9

3,788 4,148 3,807 3,350

($ million) 2007-08 2008-09

GROUP EXPENDI TURE GROUP EXPENDI TURE – – FY2008/ 09 ($ million) FY2008/ 09 ($ million)

3,000 3,250 3,500 3,750 4,000 4,250 4,500

Q1 Q2 Q3 Q4

Slide 10

($ million) 2007-08 2008-09

GROUP EXPENDI TURE GROUP EXPENDI TURE – – FY2008/ 09 ($ million) FY2008/ 09 ($ million)

+ 699 + 206

• 290

+ 630

3,000 3,250 3,500 3,750 4,000 4,250 4,500

Q1 Q2 Q3 Q4

Slide 11

343 232

• 28

357

• 100

100 200 300 400 500 600 700

Q1 Q2 Q3 Q4

($ million) 2007-08 2008-09

GROUP OPERATI NG PROFI T GROUP OPERATI NG PROFI T – – FY2008/ 09 ($ million) FY2008/ 09 ($ million)

Slide 12

($ million) 2007-08 2008-09

GROUP OPERATI NG PROFI T GROUP OPERATI NG PROFI T – – FY2008/ 09 ($ million) FY2008/ 09 ($ million)

• 287
• 318
• 120
• 496
• 100

100 200 300 400 500 600 700

Q1 Q2 Q3 Q4

Slide 13

($ million) 2007-08 2008-09

GROUP NET PROFI T GROUP NET PROFI T – – FY2008/ 09 ($ million) FY2008/ 09 ($ million)

100 200 300 400 500 600

42 359 337 324 Q1 Q2 Q3 Q4

Slide 14

FULL YEAR 2008-09 $1,062M

Q1 Q2 Q3 Q4

($ million) 2007-08 2008-09

GROUP NET PROFI T GROUP NET PROFI T – – FY2008/ 09 ($ million) FY2008/ 09 ($ million)

• 184
• 253
• 65
• 486

100 200 300 400 500 600

Slide 15

FULL YEAR 2008-09 $1,062M

c

$988M (-48.2% )

1,062

2009

GROUP NET PROFI T GROUP NET PROFI T – – FY2008/ 09 FY2008/ 09

2008

($ million)

400 800 1,200 1,600 2,000 2,400 2008 Non-

• perating

items Lower interest receivable &

• thers
• 128

Operating Profit Lower

• perating

profit

• 1,221

Tax writeback

• f $138m

& others Tax and Others

+ 362 2,049

2009

• 988

2,049 1,062

Slide 16

THE PARENT AI RLI NE THE PARENT AI RLI NE FY2008 FY2008-

• 09

09 RESULTS RESULTS

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY RESULTS RESULTS – – FY2008/ 09 ($ million) FY2008/ 09 ($ million)

49.9 49.9

• 1,644.0

1,644.0 822.9 822.9 Operating Profit Operating Profit 10.0 10.0 + + (11,115.6) (11,115.6) (12,226.6) (12,226.6) Total Expenditure Total Expenditure 2.3 2.3 + + 12,759.6 12,759.6

13,049.5 13,049.5

Total Revenue Total Revenue % Change % Change 2007 2007-

• 08

08 2008 2008-

• 09

09

Slide 18

18.9 + (4,240.3) (5,043.1)

• Fuel Cost

n.m. 185.4 (306.3)

• Fuel Hedging (Loss)/Gain

2.6

• (7,060.7)

(6,877.2)

• Ex-fuel Cost

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE OPERATI NG PERFORMANCE – – FY2008/ 09 FY2008/ 09

+ + % Change % Change 3.3 3.3 + + 4.2 4.2 pts pts 69.4 69.4 73.6 73.6 Passenger Passenger Breakeven Load Breakeven Load Factor (% ) Factor (% ) + + 9.5 9.5 8.4 8.4 9.2 9.2 Unit Cost Unit Cost ( ( ¢ ¢/ ask) / ask) 12.1 12.1 12.5 12.5 Passenger Yield Passenger Yield ( ( ¢ ¢/ / pkm pkm) ) 2007 2007-

• 08

08 2008 2008-

• 09

09

Slide 19

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE OPERATI NG PERFORMANCE – – FY2008/ 09 FY2008/ 09

Capacity (ASK)

3.4%

70 80 90 100 110 120 130 2008 2009 (Billion KM)

ASK RPK Passenger Carriage (RPK)

1.5%

76.5 80.3 PLF

• Pax. Load

Factor (% )

3.8% pts

Slide 20

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE OPERATI NG PERFORMANCE – – FY2008/ 09 FY2008/ 09

– – % Change % Change 3.8 3.8 pts pts – – 8.0 8.0 pts pts 10.9 pts 10.9 pts 2.9 pts 2.9 pts Passenger Load Passenger Load Factor Spread (% ) Factor Spread (% ) + + 4.2 4.2 pts pts 69.4 69.4 73.6 73.6 Passenger Passenger Breakeven Load Breakeven Load Factor (% ) Factor (% ) 80.3 80.3 76.5 76.5 Passenger Load Passenger Load Factor (% ) Factor (% ) 2007 2007-

• 08

08 2008 2008-

• 09

09

Slide 21

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE OPERATI NG PERFORMANCE – – FY2008/ 09 FY2008/ 09

68 72 76 80 84 2005 2006 2007 2008 2009

75.6 79.2 80.3 76.5 74.1 70.8 72.5 69.4 73.6 69.3 Passenger Load Factor Breakeven Load Factor

(%)

Slide 22

4.8 6.7 10.9 2.9 4.8

• 21.8

4.8

• 30
• 25
• 20
• 15
• 10
• 5

5 10 15 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Year-on-Year Percentage Change in PKM

(%)

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY MONTHLY PASSENGER MONTHLY PASSENGER-

• KM

KM

Slide 23

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY MONTHLY PASSENGER LOAD FACTOR MONTHLY PASSENGER LOAD FACTOR

2007-08 2008-09

Slide 24

79.7 80.8 76.4 69.4

66 68 70 72 74 76 78 80 82 84 86 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

(%)

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY COST COMPOSI TI ON COST COMPOSI TI ON – – FY2008/ 09 FY2008/ 09

Fuel 43.8% (+ 7.3% pts) Airport Handling 6.8% (-0.1% pt) Aircraft Depreciation & Rentals 14.0% (+ 1.4% pts) Staff 12.5% ( -

• 4.1% pts)

Sales Cost 5.0% (-0.9% pt) Others 17.9% (-3.6% pts)

Slide 25

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY FUEL EXPENDI TURE FUEL EXPENDI TURE – – FY2008/ 09 FY2008/ 09

($ million) 3,500 4,000 4,500 5,000 5,500 2008

4,055

Volume Higher volume uplifted

+ 145

Price Higher weighted average fuel price

+ 860

Exchange Weaker US Dollar

• 202

Hedging

+ 491

Hedging Losses Vs Gains

+ 1,294

2009

5,349

Slide 26

DI VI DENDS DI VI DENDS

DI VI DENDS DI VI DENDS – – FY2008/ 09 FY2008/ 09

168.5 168.5 89.6 89.6 Earnings Per Share ( Earnings Per Share ( ¢ ¢) ) 20.0 20.0 20.0 20.0 I nterim Dividend Per I nterim Dividend Per Share Paid ( Share Paid ( ¢ ¢) ) 2007 2007-

• 08

08 2008 2008-

• 09

09 Proposed Final Proposed Final Dividend Per Share ( Dividend Per Share ( ¢ ¢) ) 80.0 80.0 20.0 20.0 Total Ordinary Total Ordinary Dividend Per Share ( Dividend Per Share ( ¢ ¢) ) 100.0 100.0 40.0 40.0

Slide 28

DI VI DEND DI VI DEND I N I N-

• SPECI E OF

SPECI E OF SHARES I N SATS SHARES I N SATS

OBJECTI VES OBJECTI VES Unlock Shareholder Value Enable SI A to Concentrate on Airline and Aircraft Maintenance, Repair and Overhaul (MRO) Businesses Give SI A Shareholders Direct I nterest Without Additional Cash Outlay

Slide 30

UNLOCKI NG SHAREHOLDER VALUE UNLOCKI NG SHAREHOLDER VALUE

• Boosts SATS public float upwards from less than 20%

Boosts SATS public float upwards from less than 20%

• improve

improve trading liquidity in SATS shares. trading liquidity in SATS shares.

• Flexibility to separately manage portfolio holdings of SI A

Flexibility to separately manage portfolio holdings of SI A and SATS. and SATS.

• Benefit directly from any future corporate actions of SATS,

Benefit directly from any future corporate actions of SATS, for example, dividends, bonus issues and mergers and/ or for example, dividends, bonus issues and mergers and/ or acquisitions. acquisitions.

• Shareholders will receive SATS shares free of cost.

Shareholders will receive SATS shares free of cost.

Slide 31

RATI ONALE RATI ONALE

• Enables SI A to concentrate on airline and

Enables SI A to concentrate on airline and aircraft MRO businesses. aircraft MRO businesses.

• SATS increased its exposure to Non

SATS increased its exposure to Non-

• aviation

aviation businesses. businesses.

* Fractional entitlements to be disregarded.

1 SIA share 1 SIA share free of cost retains Up to 0.73 * SATS shares

Non‐ aviation

43%

Overseas

28% SATS Revenue1

1Pro form segmental revenue extracted from SATS’ circular dated 5 January 2009.

Slide 32

CONTI NUI TY OF OPERATI ONS CONTI NUI TY OF OPERATI ONS

• New agreements signed on 8 May 2009 provides assurance

New agreements signed on 8 May 2009 provides assurance to SI A that SATS will continue to supply ground handling to SI A that SATS will continue to supply ground handling and in and in-

• flight catering services for the next three to five

flight catering services for the next three to five years from 1 October 2009. years from 1 October 2009.

• Provide SATS with assurance of revenue from SI A for three

Provide SATS with assurance of revenue from SI A for three to five years from 1 October 2009. to five years from 1 October 2009.

Slide 33

FI NANCI AL EFFECTS FI NANCI AL EFFECTS

• SI A

SI A’ ’s s EPS reduced, but EPS reduced, but SI A shareholders will SI A shareholders will have direct interest in have direct interest in SATS shares and SATS shares and benefit directly from benefit directly from any future SATS any future SATS dividends. dividends.

EPS ROE Gross Gearing

• From

From SI A SI A’ ’s s perspective, perspective, no significant impact on no significant impact on ROE. ROE.

• SI A

SI A’ ’s s gross gearing is gross gearing is reduced as it de reduced as it de-

• consolidates SATS

consolidates SATS $200m notes. $200m notes.

79.6 89.6 20 40 60 80 100 Before Distribution After Distribution

EPS (cents) 12.0% 11.0% 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% Before Distribution After Distribution

Gearing Ratio (%)

7.3% 7.0% 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% Before Distribution After Distribution

ROE (%)

Note – The effects are in respect of the financial year ended 31 March 2009 on a pro forma basis. For further information, refer to announcement dated 14 May 2009. Slide 34

APPROVALS APPROVALS

• Shareholders

Shareholders’ ’ approval at an extraordinary general approval at an extraordinary general meeting; and meeting; and

• Regulatory approvals

Regulatory approvals1

1.

.

1 For further information, please refer to paragraph 5.1.2 of the announcement dated 14 May 2009.

Slide 35

LOOKI NG LOOKI NG AHEAD AHEAD

LOOKI NG AHEAD LOOKI NG AHEAD – – FY2009/ 10 FY2009/ 10 Fleet Development Capital Expenditure Outlook

Slide 37

PASSENGER FLEET DEVELOPMENT PASSENGER FLEET DEVELOPMENT – – FY2009/ 10 FY2009/ 10

99 Operating Fleet at 31 March 2010 5 7 (3) Aircraft Deliveries/ (Disposals)

• Airbus A380-800
• Airbus A330-300
• Boeing 747-400

103 Operating Fleet at 1 April 2009

• No. of Aircraft

(13) Surplus Aircraft

Slide 38

GROUP CAPI TAL EXPENDI TURE GROUP CAPI TAL EXPENDI TURE FOR NEXT 5 YEARS ($ million) FOR NEXT 5 YEARS ($ million)

2,900 2,900 100 100 2,800 2,800 FY10/ 11 FY10/ 11 1,800 1,800 100 100 1,700 1,700 FY11/ 12 FY11/ 12 2,100 2,100 100 100 2,000 2,000 FY12/ 13 FY12/ 13 3,800 3,800 1,700 1,700 Total Total 100 100 100 100 Other Assets Other Assets 3,700 3,700 1,600 1,600 Aircraft Aircraft FY13/ 14 FY13/ 14 FY09/ 10 FY09/ 10

Slide 39

OUTLOOK OUTLOOK – – FY2009/ 10 FY2009/ 10 Drop in Demand for Air Travel Outlook – Advance Bookings Jet Fuel Prices Capacity and Cost Management

Slide 40