THE PARENT AI RLI NE Q2 & 1H FY2016/ 17 RESULTS 1 THE PARENT - - PDF document

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THE PARENT AI RLI NE Q2 & 1H FY2016/ 17 RESULTS 1 THE PARENT - - PDF document

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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

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SLIDE 1

1

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

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SLIDE 2

2

THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE

Passenger Load Factor (% ) Revenue Pax-KM (million) Available Seat-KM (million) 80.4 24,027 29,884

  • 3.3 pts
  • 4.6
  • 0.7

Q2 16/ 17 % Change 78.1 46,164 59,072

  • 1.9 pts
  • 3.2
  • 0.9

1H 16/ 17 % Change

Slide 3

THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE

Passenger Yield (¢/ pkm) 10.0

  • 3.8

Q2 16/ 17 % Change 10.2

  • 2.9

1H 16/ 17 % Change

Slide 4

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SLIDE 3

3

(¢/ pkm) FY14/ 15 FY15/ 16 FY16/ 17

THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE

Monthly Pax Yields (I ncluding Fuel Surcharge)

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 10.5 10.3 10.2 10.2 9.7 10.2

9.5 10.5 11.5 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Slide 5

THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE

Passenger Breakeven Load Factor (% ) Passenger Unit Ex- Fuel Cost (¢/ ask) Passenger Unit Cost (¢/ ask) 81.0 5.7 8.1

  • 2.7 pts

+ 3.6

  • 6.9

Q2 16/ 17 % Change 78.4 5.6 8.0

  • 3.5 pts

+ 5.7

  • 7.0

1H 16/ 17 % Change Passenger Yield (¢/ pkm) 10.0

  • 3.8

10.2

  • 2.9

Slide 6

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4

(% ) 60 65 70 75 80 85 90 1H 12/ 13 1H 13/ 14 1H 14/ 15 1H 15/ 16 1H 16/ 17

THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE

81.9 80.7 82.7 79.8

  • 0.2
  • 3.1
  • 0.9
  • 1.9

Breakeven Load Factor 78.4

  • 0.3

79.6 79.8 79.6 80.0 Passenger Load Factor 78.1

Slide 7

THE PARENT AI RLI NE COMPANY RESULTS

79 Operating Profit (19) 2,687 Total Expenditure

618 Fuel Cost 115 Fuel Hedging Loss

1,954

  • Ex-fuel Cost

213

99 130

(16)

2,766 Total Revenue Q2 16/ 17 $million (232) Better/ (Worse) $million 2.9 Operating Profit Margin (% ) (0.4) pt

  • Net Fuel Cost

733 229

70 276 413 5,288 (343) 5,564 1H 16/ 17 $million

296 1,204 229 227

(112) 3,857

Better/ (Worse) $million 1.5 pts 5.0

525 1,431

Slide 8

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SLIDE 5

5

THE PARENT AI RLI NE COMPANY COST COMPOSI TI ON

1H FY16/ 17 ($’M)

Slide 9

Fuel Cost Post Hedging 1,430.8 (-525.2, -26.9% ) Others 620.2 (+ 34.9, + 6.0% ) Passenger Costs 334.4 (-2.3, -0.7% ) LPO* Charges 299.3 (+ 8.2, + 2.8% ) Handling Charges 452.5 (+ 8.7, + 2.0% ) Staff Cost 824.8 (+ 47.2, + 6.1% ) AMO Costs 401.5 (+ 34.5, + 9.4% ) Aircraft Depreciation and Lease Rentals 924.1 (-19.5, -2.1% )

* Landing, Parking and Overflying

THE PARENT AI RLI NE COMPANY FUEL EXPENDI TURE

Slide 10

1,956

  • 322
  • 230
  • 2

+ 29 1,431 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 1H FY15/ 16 Price Hedging Exchange Volume 1H FY16/ 17 Lower weighted average fuel price Lower hedging loss Higher uplift Weaker USD against SGD

  • 525

(-26.8% ) ($ million)

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6

(¢/ ask)

2 4 6 8 10 1H FY15/ 16 1H FY16/ 17 Unit Fuel Cost Unit Staff Cost 4.2 4.0 1.4 1.3 3.3 2.4 (-27.3% ) (+ 5.0% ) (+ 7.7% ) 8.6 8.0

THE PARENT AI RLI NE COMPANY UNI T COST ANALYSI S

Unit Other Cost

Slide 11

SI A GROUP Q2 & 1H FY2016/ 17 RESULTS

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SLIDE 7

7

($ million)

1H 16/ 17 Revenue $7,305M Year-on-Year $9M

  • 0.1%

FY15/ 16 FY16/ 17

Year-on-Year $273M

  • 3.6%

3,733 3,845 3,941 3,709 3,654 3,651 3,500 3,600 3,700 3,800 3,900 4,000 Q1 Q2 Q3 Q4 Q1 Q2

GROUP REVENUE

Slide 13

($ million)

1H 16/ 17 Expenditure $7,003M Year-on-Year $9M

  • 0.1%

FY15/ 16 FY16/ 17

Year-on-Year $335M

  • 4.6%

3,622 3,716 3,653 3,556 3,461 3,542 3,300 3,400 3,500 3,600 3,700 3,800 Q1 Q2 Q3 Q4 Q1 Q2

GROUP EXPENDI TURE

Slide 14

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SLIDE 8

8

($ million)

1H 16/ 17 Op Profit $302M Year-on-Year $9M

  • 0.1%

FY15/ 16 FY16/ 17

Year-on-Year $62M + 25.8%

111 129 288 153 193 109 100 200 300 400 Q1 Q2 Q3 Q4 Q1 Q2

GROUP OPERATI NG PROFI T

Slide 15

70 + 206 276 Singapore Airlines 1H 16/ 17 18 + 26 44 SilkAir 28 + (22) 6 Scoot 1H 15/ 16 Change 34.0 + 69.2 + n.m. % Change 21 + (10) 11 Tiger Airways n.m. 33

  • (12)

(45) SI A Cargo n.m.

CONTRI BUTI ON TO GROUP OPERATI NG PROFI T

Slide 16

25

  • 48

23 SI A Engineering 52.1

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SLIDE 9

9

($ million)

1H 16/ 17 Net Profit $322M Year-on-Year $9M

  • 0.1%

Year-on-Year $17M + 5.6%

168 282 126 305 322 100 200 300 400 1H FY12/ 13 1H FY13/ 14 1H FY14/ 15 1H FY15/ 16 1H FY16/ 17

GROUP PROFI T ATTRI BUTABLE TO OWNERS OF PARENT

Slide 17 ($ million) 305 + 142 + 62

  • 97
  • 59
  • 21
  • 10

322 200 250 300 350 400 450 500 550 1H FY15/ 16 Divestment

  • f HAESL

Operating Profit Dividend Associates I mpairment Disposal of aircraft, spares & spare engines 1H FY16/ 17 Gain on SI AEC’s divestment of HAESL Higher

  • p profit

Lower dividends from investment Higher share

  • f losses from

associates I mpairment

  • f aircraft

GROUP PROFI T ATTRI BUTABLE TO OWNERS OF PARENT

Slide 18 + 17 (+ 5.6% ) Higher loss on disposal

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SLIDE 10

10 10.0 9.0 I nterim Dividend Per Share (¢) 1.39 1.43 EBI TDAR Per Share ($) 1H FY15/ 16 1H FY16/ 17 10.96 11.20 Net Asset Value Per Share ($) At 31 Mar’16 At 30 Sep’16 26.1 27.2 Earnings Per Share (¢)

PER SHARE DATA

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

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11

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

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SLIDE 12

12

GROUP FUEL HEDGI NG POSI TI ON

Slide 23

2H FY2016/ 17 Jet Fuel Brent Percentage hedged (% ) 29.3 3.0 Average hedged price (USD/ BBL) 68 63

STRATEGI C DEVELOPMENTS

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SLIDE 13

13

CHALLENGES

Global Economic Uncertainty Oil Price Volatility Geopolitical Concerns 1 2 3 4 I ntense Competition

Slide 25

Strengthening Premium Positioning Multi-Hub Portfolio New Business Opportunities KEY STRATEGI ES

Slide 26

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SLIDE 14

14 PRODUCTS & SERVI CES SilverKris Lounges

  • Upcoming opening in Bangkok (1Q 2017),

featuring new

  • pen

bar concept and signature screen

STRENGTHENI NG PREMI UM POSI TI ONI NG

Premium Economy Class

  • Available on 24 destinations to date, on

6 A350, 19 A380 and 10 B777-300ER aircraft

PRODUCTS & SERVI CES New KrisWorld I nteractive

  • Progressively available on the A350 fleet

from Nov 2016, and B773ER fleet from Dec 2016

STRENGTHENI NG PREMI UM POSI TI ONI NG

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

Slide 28

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SLIDE 15

15 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

GAME-CHANGER

STRENGTHENI NG PREMI UM POSI TI ONI NG

Slide 29

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

STRENGTHENI NG PREMI UM POSI TI ONI NG

NETWORK

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16

NEW DESTI NATI ONS & ROUTES

Singapore San Francisco Canberra Wellington Los Angeles Seoul Dusseldorf Manchester Houston Singapore Airlines Slide 31

PORTFOLI O

NEW DESTI NATI ONS

Scoot Tigerair SilkAir Singapore Airlines Sapporo Amritsar Jaipur Dusseldorf Canberra Wellington Wuxi Luang Prabang Vientiane Zhengzhou Athens Fuzhou Dalian Slide 32

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SLIDE 17

17

PORTFOLI O The SI A Group serves 132 destinations in 36 countries

Slide 33

  • 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

PORTFOLI O

Slide 34

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SLIDE 18

18

  • I nvestments in strategic markets
  • Complements and strengthens Singapore hub through synergies
  • Taps into large and growing Indian market
  • Complements SIA operations to the West
  • 18 destinations and 13 A320s (7 A320s on order)
  • Strong leisure travel market
  • 7 destinations and 3 B777-200s

MULTI -HUB

Slide 35

KrisFlyer

  • Grown to 36 air partners and 197 non-air partners
  • Recent developments include enhancement of co-brand credit cards

with American Express and new partnership with Shangri-la

Airbus Asia Training Centre

  • 28 customers, including SIA
  • Five flight simulators for the A320, A330, A350 and A380 installed
  • Three more simulators to

be added by 2019, to meet training requirements in the region

NEW REVENUE & BUSI NESS OPPORTUNI TI ES

Slide 36

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THANK YOU