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

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

May 26, 2023 193 likes •455 views

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

slide-1
SLIDE 1

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

slide-2
SLIDE 2

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY RESULTS RESULTS – – 2Q & 1H FY13/ 14 2Q & 1H FY13/ 14

Slide 3

3.0 Operating Profit Margin (% ) 0.3 pt 13 97 Operating Profit 15.3 3,125

30

Total Expenditure

1,280

  • Fuel Cost

(44)

  • Fuel Hedging Gain

1,889

  • Ex-fuel Cost

(68)

(39) (59)

(2.2)

(3.2) n.m. (3.2)

3,222 Total Revenue 2Q/ 13 $million 81 Better/ (Worse) $million % 2.6 17 186 (120) 6,196 137 6,382 1H/ 13 $million

33 2,451 19 (9) (172) 3,754

Better/ (Worse) $million % 0.2 pt 2.9 10.0 (2.0)

1.3 n.m. (4.8)

2.2

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

Slide 4

25,064 Revenue Pax-KM (million) 2Q/ 13 + 4.9 % Change 81.1 Passenger Load Factor (% ) + 1.3 pts 30,910 Available Seat-KM (million) + 3.2 + 3.4 60,918

  • 79.6

+ 3.3 48,462 1H/ 13 % Change

slide-3
SLIDE 3

Slide 5

Passenger Yield (¢/ pkm) Passenger Unit Cost (¢/ ask) Passenger Breakeven Load Factor (% ) 11.0

  • 3.5

9.1

  • 82.7

+ 2.9 pts

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

  • 9.1
  • 3.5

11.0 + 2.9 pts 82.7 1H/ 13 % Change

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE OPERATI NG PERFORMANCE

68 72 76 80 84 88 1H 09/ 10 1H 10/ 11 1H 11/ 12 1H 12/ 13

Passenger Load Factor Breakeven Load Factor

(% )

Slide 6

1H 13/ 14

75.6 79.4 77.5 79.6 79.6

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SLIDE 4

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE OPERATI NG PERFORMANCE

79.8 68 72 76 80 84 88 1H 09/ 10 1H 10/ 11 1H 11/ 12 1H 12/ 13 Passenger Load Factor Breakeven Load Factor

(% )

Slide 7

1H 13/ 14 82.7 86.0 75.4 78.0

75.6 79.4 77.5 79.6 79.6

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE OPERATI NG PERFORMANCE

86.0 75.4 78.0 79.8 68 72 76 80 84 88 1H 09/ 10 1H 10/ 11 1H 11/ 12 1H 12/ 13 Passenger Load Factor Breakeven Load Factor

(% )

75.6 79.4

  • 10.4

4.0

  • 0.5
  • 0.2

Slide 8

77.5 79.6 1H 13/ 14 79.6 82.7

  • 3.1
slide-5
SLIDE 5

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY MONTHLY PASSENGER YI ELD MONTHLY PASSENGER YI ELD

¢/ pkm

Monthly Pax Yields (I ncluding Fuel Surcharge)

10.4 10.2 9.9 9.7 9.8 10.0 10.4 10.5 10.7 11.1 11.0 11.3 11.2 11.4 11.6 11.3 11.3 11.6 11.5 11.2 11.0 11.4 11.4 11.3

10 11 12 13 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2009-10 2012-13 2013-14 10.9 11.1 11.2 10.8 10.8 11.3

Slide 9

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

  • TREND

TREND

Slide 10

Fuel Cost before hedging Fuel Price before hedging

($ million) (USD/ BBL) 1Q 2Q 3Q 4Q

2008-09

1Q 2Q 3Q 4Q

2009-10

1Q 2Q 3Q 4Q

2010-11

1Q 2Q 3Q 4Q

2011-12

1Q 2Q 3Q 4Q

2012-13

1Q 2Q

2013-14

1,557 1,743 1,094 649 631 1,243 1,241 1,262 1,233 1,171 1,280 600 800 1,000 1,200 1,400 1,600 1,800 2,000 120 133 132 126 149 160 98 132 61 64 126 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160

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SLIDE 6

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

Slide 11

Fuel Cost Post Hedging 39.4% (-1.7 pts) Staff 13.0% (-0.2 pt) Aircraft Depreciation & Lease Rentals 14.4% (+ 0.9 pt) Handling Charges 7.1% Others 20.7% (+ 1.0 pt) Passenger Costs 5.4%

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

Slide 12

1H 2013-14 1H 2012-13 $M 500 1,000 1,500 2,000 2,500 3,000 Passenger Cost Handling Charges Staff Aircraft Depr. & Lease Rentals Fuel After Hedging 438 (+ 1.2% , + $5M) 337 (+ 1.9% , + $6M) 892 (+ 8.9% , + $73M) 805 (+ 0.4% , + $3M) 2,442 (-2.1% , -$53M)

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SLIDE 7

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY FUEL FUEL EXPENDI TURE EXPENDI TURE – – 1H FY13/ 14 1H FY13/ 14

Slide 13

2,495 2,400 2,600 2,800 H1/ 12 2,442 H1/ 13

  • 53

(-2.1% ) + 80 Volume

Higher volume uplifted

  • 19

Hedging

Hedging gain vs loss last year

  • 114

Price

Lower weighted average fuel price ($ million)

THE GROUP THE GROUP 1H FY2013/ 14 1H FY2013/ 14 RESULTS RESULTS

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SLIDE 8

($ million) 2012/ 13 2013/ 14

GROUP REVENUE – 1H FY2013/ 14

3,777 3,840

2,750 3,000 3,250 3,500 3,750 4,000 Q1 Q2

Year-on-Year $170M + 2.2% Half Year Revenue $7,741M

+ 63 + 1.7%

Slide 15

3,794 3,901 + 107 + 2.8%

2012/ 13 2013/ 14

GROUP EXPENDI TURE – 1H FY2013/ 14

3,705 3,758

Q1 Q2 ($ million) 2,750 3,000 3,250 3,500 3,750 4,000

Year-on-Year $143M + 1.9% Half Year Expenditure $7,572M

+ 53 + 1.4%

Slide 16

3,724 3,814 + 90 + 2.4%

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SLIDE 9

2012/ 13 2013/ 14

GROUP OPERATI NG PROFI T – 1H FY2013/ 14

72 82

25 50 75 100 125 150 Q1 Q2

Half Year Op Profit $169M Year-on-Year $27M + 19.0%

($ million) + 10 + 13.9%

Slide 17

70 87 + 17 + 24.3%

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)

22 186 1H/ 13 (71) 56 SilkAir Singapore Airlines SI A Cargo SI A Engineering 37 169 (99) 66 1H/ 12 15

  • 17

+ 28 + 10

  • Change

Slide 18

40.5

  • 10.1

+ 28.3 + 15.2

  • % Change
slide-10
SLIDE 10

($ million)

2012/ 13 2013/ 14

GROUP NET PROFI T – 1H FY2013/ 14

78 122

50 100 150 200 Q1 Q2 + 44 + 56.4%

Half Year Net Profit $282M Year-on-Year $114M + 67.9%

Slide 19

90 160 + 70 + 77.8%

($ million)

GROUP NET PROFI T – 1H FY2013/ 14

50 100 150 200 250 300 1H/ 12 Operating Profit Higher

  • perating

profit

+ 27

Exceptional I tems

+ 22

Exceptional items Others

+ 19

Lower taxation and

  • thers

168

1H/ 13

282 + 114 + 67.9%

Slide 20

Aircraft Disposal Gain on disposal

  • f aircraft

vs loss last year

+ 28

Associates and JV Higher share of profits from associated and JVs

+ 18

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SLIDE 11

GROUP RESULTS GROUP RESULTS – – 1H FY13/ 14 1H FY13/ 14

Slide 21

6.0 10.0 I nterim Dividend Per Share (¢) 1.11 1.25 EBI TDAR Per Share ($) 1H/ 12 1H/ 13 11.15 11.30 Net Asset Value Per Share ($) At 31 Mar 13 At 30 Sep 13 14.3 24.0 Earnings Per Share (¢)

  • 1
  • 4

OUT: Decommissioned B777-200 OUT: Decommissioned A340-500

FLEET DEVELOPMENT - SI A

Slide 22

103 Operating Fleet at 30 September 13

  • No. of Aircraft

103 Operating Fleet at 31 March 14 + 2 I N: Delivery of A330-300 + 2 Reinstatement of B777-200ER + 1 Delivery of B777-300ER

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SLIDE 12
  • 2

OUT: Decommissioned A320-200

FLEET DEVELOPMENT - SLK

Slide 23

23 Operating Fleet at 30 September 13

  • No. of Aircraft

24 Operating Fleet at 31 March 14 + 1 I N: Delivery of A320-200 + 2 Delivery of B737-800

FLEET DEVELOPMENT - SCOOT

Slide 24

5 Operating Fleet at 30 September 13

  • No. of Aircraft

6 Operating Fleet at 31 March 14 + 1 I N: Lease of B777-200

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SLIDE 13

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

Slide 26

  • 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-14
SLIDE 14

BUSI NESS OUTLOOK BUSI NESS OUTLOOK

OUTLOOK OUTLOOK

Slide 28

  • High and volatile fuel price
  • I ntense competition
  • Uncertain global economy
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SLIDE 15

MEETI NG THE MEETI NG THE CHALLENGES CHALLENGES

Slide 30

  • Continued Focus on Three Pillars

MEETI NG THE CHALLENGES MEETI NG THE CHALLENGES

slide-16
SLIDE 16

Slide 31

Product Leadership Service Excellence Network Connectivity

FOCUS ON THREE PI LLARS FOCUS ON THREE PI LLARS

Slide 32

  • Next Generation Cabin Products

PRODUCT LEADERSHI P PRODUCT LEADERSHI P

slide-17
SLIDE 17

Slide 33

Gallery Space Gallery Space Tasting Room Dining Area

  • New Design Concept for SilverKris Lounge

Planned improvements to lounges in:

  • Sydney
  • London
  • Hong Kong
  • Singapore T3
  • Kuala Lumpur
  • Manila
  • San Francisco
  • Singapore T2

PRODUCT LEADERSHI P PRODUCT LEADERSHI P

  • Using CEM to deliver proactive and personalized service

for all touch-points

Slide 34 Customer Customer Experience Experience Management Management

  • Customer Experience Management

SERVI CE EXCELLENCE SERVI CE EXCELLENCE

slide-18
SLIDE 18
  • Enhancement of Reserve

Value

  • Guaranteed Economy

Class booking

  • Access to lounges on

arrival for Solitaire members

Slide 35

  • Pay with KrisFlyer Miles
  • Expanded KrisFlyer

partnerships

SERVI CE EXCELLENCE SERVI CE EXCELLENCE

  • Loyalty Enhancements

Slide 36

SERVI CE EXCELLENCE SERVI CE EXCELLENCE

  • SAA website improvement

+ 52% + 33% SAA Commercial Bookings

50,000 60,000 70,000 80,000 90,000 100,000 Apr May Jun Jul Aug Sep

Booking Counts

SAA R4 (Apr 2013 – Mar 2014) SAA R4 (Apr 2011 – Mar 2012) SAA R3 (Apr 2010 – Mar 2011)

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SLIDE 19
  • Capacity I ncreases and New Destinations

NETWORK CONNECTI VI TY NETWORK CONNECTI VI TY

Copenhagen Fukuoka Osaka Adelaide Shanghai Jakarta Melbourne New Delhi Surabaya Semarang Makassar Osaka Penang Bali Wuhan Shenzhen Kochi Yogyakarta Medan Siem Reap

Projected ASK Growth: 3% Projected ASK Growth: 15%

Slide 37

  • Expanding our network through partnerships

Slide 38

As at March 2013 From 2011 to 2013

41%

more code share destinations on SQ network

59%

increase in SQ marketing flights per week on code share partners

NETWORK CONNECTI VI TY NETWORK CONNECTI VI TY

As at September 2013 From 2011 to 2013

55%

more code share destinations on SQ network

92%

increase in SQ marketing flights per week on code share partners

slide-20
SLIDE 20

Slide 39

1 x B772 1 x A320 4 x A330 2 x B773 ER

Delivered in 1H FY2013-14 Scoot SilkAir SI A

8

  • Fleet Development

NETWORK CONNECTI VI TY NETWORK CONNECTI VI TY

Slide 40

1 x B772 (Oct 13) 20 x B787 (2014 onwards) 1 x A320 (Oct 13) 54 x B737 (2014

  • nwards)

10 x A330 (Ongoing) 6 x B773 ER (Ongoing) 70 x A350 (2016 onwards) 5 x A380 (2017 onwards) 30 x A787-10X (2018 onwards)

More to join the fleet Scoot SilkAir SI A

197

  • Fleet Development

NETWORK CONNECTI VI TY NETWORK CONNECTI VI TY

slide-21
SLIDE 21

MEETI NG THE CHALLENGES MEETI NG THE CHALLENGES

Slide 41

  • Focus on three pillars
  • Portfolio of Airlines

Positioning

Premium Full Service LCC

Markets

  • Portfolio of brands allows us to tap different segments

PORTFOLI O OF AI RLI NES PORTFOLI O OF AI RLI NES

Medium/ Long-Haul Regional

Slide 42

slide-22
SLIDE 22

MEETI NG THE CHALLENGES MEETI NG THE CHALLENGES

Slide 43

  • Focus on Three Pillars
  • Portfolio of Airlines
  • Tata-SI A JV: Expanding I nto New Growth

Markets

Rising GDP and I ncomes

  • GDP grew at 8.6% CAGR from 2004-05 to 2010-11 and

projected at 6.0% in the next 5 years I ncreasing Middle Class

  • Middle class population expected to grow significantly

Favourable Demographics

  • Young population

I mmense Market Potential

  • Trips per capita in I ndia still very low (0.04)

Slide 44

  • Strong macro drivers

TATA TATA-

  • SI A JV: EXPANDI NG I NTO NEW

SI A JV: EXPANDI NG I NTO NEW MARKETS MARKETS

slide-23
SLIDE 23

Slide 45

  • What it means for SI A:

TATA TATA-

  • SI A JV: EXPANDI NG I NTO NEW

SI A JV: EXPANDI NG I NTO NEW MARKETS MARKETS

  • Direct participation in a huge growth market
  • Diversify traffic base
  • Commercial synergies between Tata-SIA JV and SIA

MEETI NG THE CHALLENGES MEETI NG THE CHALLENGES

Slide 46

  • Focus on Three Pillars
  • Portfolio of Airlines
  • Tata-SI A JV: Expanding I nto New Growth

Markets

  • Pursue New Opportunities
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SLIDE 24

Thank You