THE PARENT AI RLI NE FY2015/ 16 RESULTS 1 THE PARENT AI RLI NE - - PDF document

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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

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SLIDE 1

1

SI A ANALYST/ MEDI A BRI EFI NG

FY2015-16 Results 13 May 2016

THE PARENT AI RLI NE FY2015/ 16 RESULTS

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SLIDE 2

2

THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE – FY2015/ 16

Passenger Load Factor (% ) Revenue Pax-KM (million) Available Seat-KM (million)

Slide 3

78.5 22,788 29,026 + 2.4 pts + 2.9

  • 0.2

4Q/ 15 % Change 79.6 94,267 118,367 + 1.1 pts + 0.1

  • 1.4

15/ 16 % Change

THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE – FY2015/ 16

Passenger Yield (¢/ pkm)

Slide 4

10.6

  • 7.0

4Q/ 15 % Change 10.6

  • 5.4

15/ 16 % Change

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SLIDE 3

3

THE PARENT AI RLI NE COMPANY RESULTS – FY2015/ 16

Monthly Pax Yields (I ncluding Fuel Surcharge)

10.9 11.1 11.2 10.8 10.8 11.3 11.1 11.1 11.3 10.9 11.1 11.3 10.7 11.1 10.9 10.8 10.7 11.2 11.5 11.5 11.4 11.4 11.4 11.4 10.9 10.7 10.5 10.4 10.1 10.6 11.0 11.0 10.9 10.6 10.7 10.5 10 11 12 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

¢/ pkm

2013-14 2014-15 2015-16 Slide 5

THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE – FY2015/ 16

Passenger Breakeven Load Factor (% ) Passenger Unit Ex- Fuel Cost (¢/ ask) Passenger Unit Cost (¢/ ask)

Slide 6

78.3 5.8 8.3

  • 0.6 pt

+ 5.5

  • 7.8

4Q/ 15 % Change 80.2 5.5 8.5 + 0.7 pt + 5.8

  • 4.5

15/ 16 % Change Passenger Yield (¢/ pkm) 10.6

  • 7.0

10.6

  • 5.4
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SLIDE 4

4

79.5 82.0 80.7 78.0

%

Passenger Load Factor Breakeven Load Factor

77.4 78.9 78.5 65 70 75 80 85 90 11/ 12 12/ 13 13/ 14 14/ 15 79.3

  • 3.1
  • 1.0
  • 1.4
  • 0.6

THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE

Slide 7

80.2 79.6

  • 0.6

15/ 16

THE PARENT AI RLI NE COMPANY RESULTS – FY2015/ 16

Slide 8

98 Operating Profit 28 2,691 Total Expenditure

486

  • Fuel Cost

235

  • Fuel Hedging Loss

1,970

  • Ex-fuel Cost

241

238 52 (49)

2,789 Total Revenue 4Q/ 15 $million (213) Better/ (Worse) $million 3.5 Operating Profit Margin (% ) 1.2 pts 145 485 877 11,201 (732) 11,686 15/ 16 $million

1,442 2,637 (469) 926 (96) 7,638

Better/ (Worse) $million 1.5 pts 4.2

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SLIDE 5

5

* Landing, Parking and Overflying

THE PARENT AI RLI NE COMPANY COST COMPOSI TI ON – FY2015/ 16

Slide 9

Fuel Cost Post Hedging 3,563.3 (-972.9, -21.4% ) Staff Costs 1,596.0 (+ 55.8, + 3.6% ) Handling Charges 889.6 (+ 13.4, + 1.5% ) Passenger Costs 669.9 (-6.8, -1.0% ) Others 1,232.4 (-48.1, -3.8% ) AMO Costs 750.9 (+ 95.2, + 14.5% ) LPO* Charges 584.4 (-10.4, -1.7% ) Aircraft Depreciation & Lease Rentals 1,914.5 (-3.4, -0.2% )

Cost Composition ($M)

31.8% 17.1% 6.7% 14.3% 7.9% 5.2% 6.0% 11.0%

11/ 12 12/ 13 13/ 14 14/ 15 15/ 16

THE PARENT AI RLI NE COMPANY FUEL PRI CE AND EXPENDI TURE - TREND

Fuel Price After Hedging

Slide 10 1,043 1,205 1,179 1,254 1,231 1,268 1,227 1,244 1,212 1,206 1,236 1,174 1,158 1,150 1,194 1,182 1,011 994 962 886 721 119 137 131 129 133 132 122 102 74 77 67 60 45 115 135 132 129 131 134 123 121 103 98 90 82 67 10 20 30 40 50 60 70 80 90 100 110 120 130 140 400 600 800 1000 1200 1400 1600 1800 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Fuel Cost after Hedging Fuel Price before Hedging Fuel Price after Hedging 10/ 11 ($ million) (USD/BBL)

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SLIDE 6

6

4,536 3,000 4,000 5,000 FY14/ 15 $M + 206 Exchange Stronger US Dollar + 469 Hedging Higher hedging loss

  • 1,682

Price Lower weighted average fuel price + 34 Volume 0.6% higher volume 3,563 FY15/ 16

  • 973

(-21.4% )

THE PARENT AI RLI NE COMPANY FUEL EXPENDI TURE – FY2015/ 16

Slide 11

4.1 3.9 1.4 1.3 3.7 3.0 2 4 6 8 10 14/ 15 15/ 16 Unit Fuel Cost Unit Staff Cost Unit Other Cost (-18.9% ) (+ 5.1% ) (+ 7.7% ) 8.9 8.5

THE PARENT AI RLI NE COMPANY UNI T COST ANALYSI S – FY2015/ 16

¢/ ask

Slide 12

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SLIDE 7

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SI A GROUP FY2015/ 16 RESULTS

3,880 4,099 3,905 3,682 3,733 3,845 3,500 3,750 4,000 Q1 Q2 Q3 Q4 FY14/ 15 FY15/ 16

GROUP REVENUE – FY2015/ 16

Year-on-Year $338M

  • 2.2%

($ million)

Slide 14

Full Year Revenue $15,228M

3,941 3,709

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SLIDE 8

8

3,788 3,953 3,773 3,642 3,622 3,716 3,500 3,750 4,000 Q1 Q2 Q3 Q4 FY14/ 15 FY15/ 16

GROUP EXPENDI TURE – FY2015/ 16

Year-on-Year $609M

  • 4.0%

($ million)

Slide 15

3,653 3,556

Full Year Expenditure $14,547M

681

GROUP OPERATI NG PROFI T – FY2015/ 16

Year-on-Year $271M + 66.1%

410 286 259 229 400 600 800 11/ 12 12/ 13 13/ 14 14/ 15 15/ 16 ($ million)

Slide 16

Full Year Op Profit $681M

200

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SLIDE 9

9 20 + 84 104 SI A Engineering 145 + 340 485 Singapore Airlines 15/ 16 28

  • (22)

(50) SI A Cargo 23 + (9) 14 Tiger Airways 14/ 15 Change

CONTRI BUTI ON TO GROUP OPERATI NG PROFI T – FY2015/ 16 ($ million)

23.8 + 42.6 + 127.3

  • n.m.

% Change

Slide 17

50 + 41 91 SilkAir 122.0 + 95 + (67) 28 Scoot n.m.

379 336 368 200 400 600 800 1,00 11/ 12 12/ 13 13/ 14 14/ 15 15/ 16

GROUP NET PROFI T – FY2015/ 16

($ million)

Full Year Net Profit $368M Year-on-Year + $436M + 118.5%

Slide 18

804

Full Year Net Profit $804M

359

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SLIDE 10

10

GROUP PROFI T ATTRI BUTABLE TO OWNERS OF PARENT – FY2015/ 16

Slide 19

368

FY14/ 15

Higher

  • perating

profit + 271

Operating profit

Higher dividends from investment + 102

Dividend

  • 56

Exceptions

804

FY15/ 16 400 600 800 1000

+ 436 (+ 118.5% ) Share of profits

  • vs. share
  • f losses

last year + 89

Assocs & JVs

Refund of fines to SI A Cargo + 117

Fines

($ million)

No impairment of China Cargo Airlines this year: + 64 No remeasurement gain from Tiger consolidation this year:

  • 120
  • 84

Tax

Higher tax expenses

Others

  • 3

FLEET DEVELOPMENT – PASSENGER AI RLI NE

Slide 20

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

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11

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

Slide 22

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

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SLIDE 12

12

GROUP FUEL HEDGI NG POSI TI ON

Slide 23

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 24

5.0 10.0 I nterim Dividend Per Share (¢)

DI VI DENDS – FY2015/ 16

31.4 69.0 Earnings Per Share (¢) 17.0 35.0 Proposed Final Dividend Per Share (¢) 14/ 15 15/ 16 22.0 45.0 Total Dividend Per Share (¢)

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SLIDE 13

13

STRATEGI C DEVELOPMENTS

Global Economic Uncertainty I ntense Competition Oil Price Volatility 1 2 3

Slide 26

CHALLENGES

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SLIDE 14

14

Strengthening our Premium Positioning Multi-Hub Portfolio New Business Opportunities

Slide 27

KEY STRATEGI ES

  • Premium Economy Class
  • Currently flying to 18 destinations
  • Available on A350-900, A380 & B777-300ER

PRODUCTS & SERVI CES

  • IFE Companion App
  • Preview KrisWorld content and create

favourites list pre-flight

  • Control seat-back IFE system
  • Available on A350-900, and progressively
  • n B777-300ER

Slide 28

STRENGTHENI NG OUR PREMI UM POSI TI ONI NG

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SLIDE 15

15

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

  • 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

PRODUCTS & SERVI CES

Slide 30

STRENGTHENI NG OUR PREMI UM POSI TI ONI NG

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SLIDE 16

16

  • 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

NETWORK

Slide 31

STRENGTHENI NG OUR PREMI UM POSI TI ONI NG

Full Service Low Cost Positioning Regional Long-Haul

  • Enhance connectivity

Slide 32

PORTFOLI O

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SLIDE 17

17

PRI VATI SATI ON OF TI GER AI RWAYS

DELI STI NG COMPLETED ON 11 MAY 2016

Network coordination Operational and backroom Commercial activities

Enables:

  • Seamless cooperation in all

aspects of the business

  • Full synergies within the SIA

Group

  • Strengthening of benefits to

SIA Group Portfolio Strategy

  • New profit generation
  • pportunities

Slide 33

Full Service Low Cost Positioning Regional Long-Haul

  • Enhance connectivity
  • Harness group synergies
  • Extend market reach

Slide 34

PORTFOLI O

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SLIDE 18

18

SI A and SilkAir serve 98 destinations The SI A Group serves 122 destinations

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SLIDE 19

19

  • New growth engines in large and expanding markets
  • Synergies with Singapore hub

MULTI -HUB

  • Large and growing market
  • 16 destinations and 10 A320s (10 A320s on order)
  • Strong budget travel market
  • 5 destinations and 3 B777-200s

Slide 37

The SI A Group serves 122 destinations

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SLIDE 20

20

The SI A Group and its Associates serve 176 destinations

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SLIDE 21

21

SI A serves 10 destinations

Bangkok Jakarta Denpasar-Bali Hanoi Kuala Lumpur Manila Yangon Ho Chi Minh City Surabaya Bandar Seri Begawan

Slide 41

SOUTHEAST ASI A

Singapore Airlines

SI A and SilkAir serve 36 destinations

Bangkok Jakarta Hanoi Kuala Lumpur Manila Yangon Ho Chi Minh City Surabaya Bandung Kota Kinabalu Balikpapan Cebu Chiang Mai Da Nang Davao Phuket Yogyakarta Kuching Kalibo Langkawi Lombok Manado Mandalay Penang Pekanbaru Palembang Phnom Penh Siem Reap Semarang Makassar Ko Samui Bandar Seri Begawan Luang Prabang (from 31/10/16) Vientiane (from 31/10/16) Denpasar-Bali

Slide 42

SOUTHEAST ASI A

Medan

Singapore Airlines SilkAir

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SLIDE 22

22

Singapore Airlines Scoot Tigerair SilkAir

The SI A Group serves 41 destinations

Bangkok (BKK/ DMK) Jakarta Denpasar-Bali Hanoi Kuala Lumpur Manila (NAI A) Yangon Ho Chi Minh City Surabaya Bandung Kota Kinabalu Balikpapan Cebu Da Nang Davao Phuket Yogyakarta Kuching Kalibo Medan Langkawi Lombok Manado Mandalay Penang Pekanbaru Palembang Phnom Penh Siem Reap Semarang Makassar Ko Samui Manila (Clark) Hat Yai I poh Krabi Bandar Seri Begawan Chiang Mai Luang Prabang (from 31/10/16) Vientiane (from 31/10/16)

Slide 43

SOUTHEAST ASI A

Sydney Melbourne Brisbane Adelaide Perth Auckland Christchurch Cairns Darwin Gold Coast

The SI A Group serves 12 destinations

Wellington (from 20/9/16) Canberra (from 20/9/16)

Slide 44

SOUTHWEST PACI FI C

Singapore Airlines Scoot SilkAir

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SLIDE 23

23

Virgin Australia

The SI A Group and Virgin Australia serve 48 destinations

* SI A service to Canberra & Wellington commences 20 Sept ‘16

Sydney Melbourne Brisbane Adelaide Perth Auckland Christchurch Cairns Darwin Gold Coast Newcastle Bundaberg Hamilton I sland Tamworth Mildura Ballina Dunedin Queenstown Broome Kununurra Albury Alice Springs Ayers Rock Canberra* Coffs Harbour Cloncurry Emerald Geraldton Gladstone Hobart Hervey Bay Mount I sa Kalgoorlie-Boulder Karratha Launceston Sunshine Coast Rockhampton Moranbah Paraburdoo Port Hedland Proserpine Port Macquarie Mackay Tonga Townsville Wellington* Christmas I sland

Slide 45

SOUTHWEST PACI FI C

Singapore Airlines Scoot SilkAir

Newman

Singapore Airlines

SI A and SilkAir serve 10 destinations

SilkAir Beijing Shanghai Guangzhou Kunming Xiamen Changsha Wuhan Chongqing Chengdu Shenzhen Slide 46

CHI NA

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SLIDE 24

24

The SI A Group serves 23 destinations

Scoot Tigerair NokScoot Beijing Shanghai Guangzhou Shenyang Ningbo Kunming Xiamen Changsha Wuhan Chongqing Chengdu Jinan Xian Quanzhou Nanning Haikou Tianjin Nanjing Hangzhou Lijiang Shenzhen Wuxi Qingdao Zhengzhou

(from 28/6/16)

Slide 47

CHI NA

Singapore Airlines SilkAir

SI A and SilkAir serve 11 Destinations

Chennai Bangalore Mumbai Ahmedabad New Delhi Kolkata Kochi Coimbatore Hyderabad Vishakhapatnam Thiruvananthapuram Slide 48

I NDI A

Singapore Airlines SilkAir

slide-25
SLIDE 25

25

The SI A Group serves 15 destinations

Chennai Bangalore Ahmedabad New Delhi Kolkata Kochi Lucknow Tiruchirappalli Coimbatore Hyderabad Vishakhapatnam Thiruvananthapuram Jaipur

(from 2/10/16)

Mumbai Amritsar

(from 24/5/16)

Slide 49

I NDI A

Scoot Tigerair Singapore Airlines SilkAir Vistara

The SI A Group and Vistara serve 24 destinations

Chennai Bangalore Mumbai Ahmedabad New Delhi Kolkata Bhubaneswar Guwahati Srinagar Kochi Goa Lucknow Jammu Chandigarh Bagdogra Varanasi Pune Tiruchirappalli Coimbatore Hyderabad Vishakhapatnam Thiruvananthapuram Amritsar

(from 24/5/16)

Jaipur

(from 2/10/16)

Slide 50

I NDI A

Scoot Tigerair Singapore Airlines SilkAir

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SLIDE 26

26

Group Airlines SQ/MI Scoot Tigerair (Earn/Burn partners wef Sep15)

Expand across customer segments

Expanding KrisFlyer

Airlines SQ/MI Airline Partners Star Alliance Others

KrisFlyer

Airline Partners Star Alliance Others Virgin Australia Vistara (Conversion w VA + Earn/Burn w VA/Vistara)

Expand geographically e.g. Australia, I ndia

Non-Airline Partners Banks, Hotels, Supermarkets/Pharmacies, others (Close to 200 non-air partners)

Expand across categories

Non-Airline Partners Banks, Hotels etc. Slide 51

NEW REVENUE & BUSI NESS OPPORTUNI TI ES

Airbus Asia Training Centre

  • Inaugurated on 18 Apr 2016 at the Seletar Aerospace Park
  • Seventeen airlines have signed up for training courses
  • AATC has five full flight simulators for the A320, A330, A350 and A380

currently

  • Once fully functional, AATC will be able to accommodate more than

10,000 trainees a year

Slide 52

NEW REVENUE & BUSI NESS OPPORTUNI TI ES

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SLIDE 27

27

THANK YOU