SINGAPORE AIRLINES GROUP ANALYSTS / MEDIA BRIEFING...Q1 Q2 Q3 Q4 ($ million) 2007-08 2008-09 GROUP NET PROFIT – FY2008/09 ($ million)-184-253-65-486 0 100 200 300 400 500 600 Slide

SINGAPORE AIRLINES GROUP SINGAPORE AIRLINES GROUP ANALYSTS / MEDIA BRIEFINGANALYSTS / MEDIA BRIEFING

FY2008FY2008--09 RESULTS 09 RESULTS

15 MAY 200915 MAY 2009

THE GROUP THE GROUP FY2008FY2008--0909

RESULTSRESULTS

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

12,013

13,341

14,494

15,973 15,996

0

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

10,696

12,128

13,18013,848

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%

0

Slide 4

GROUP OPERATING PROFIT GROUP OPERATING PROFIT –– FY2008/09 ($ million)FY2008/09 ($ million)

1,317 1,213

2,125

904

1,314

0

400

800

1,200

1,600

2,000

2,400

2,800

2005 2006 2007 2008 2009

($ million)

Operating Profit

57.5%

Slide 5


11.0

5.6

13.3

9.1 9.1

0

400

800

1,200

1,600

2,000

2,400

2,800

2005 2006 2007 2008 20090

2

4

6

8

10

12

14

($ million) (%)

Operating Profit Margin

7.7% pts

Operating Profit

57.5%

Slide 6

CONTRIBUTION TO GROUP OPERATING CONTRIBUTION TO GROUP OPERATING PROFIT PROFIT –– FY2008/09FY2008/09

SIA$821M

(-49.9%)

SATS Group$3M

(-2.0%)

SIAEC$10M

(+9.4%)

SIA Cargo$377M

-300

0

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%

SIA Cargo

SIA

SATS

OthersSIAEC

Slide 7

4,132

4,379

4,164

3,321

0

3,000

3,250

3,500

3,750

4,000

4,250

4,500

Q1 Q2 Q3 Q4


($ million)2007-08 2008-09

Slide 8


($ million)2007-08 2008-09

+412 -112

-786

+510

0

3,000

3,250

3,500

3,750

4,000

4,250

4,500

Q1 Q2 Q3 Q4Slide 9

3,788

4,148

3,807

3,350

($ million)2007-08 2008-09


3,000

3,250

3,500

3,750

4,000

4,250

4,500

Q1 Q2 Q3 Q4Slide 10

0

($ million)2007-08 2008-09


+699+206

-290+630

3,000

3,250

3,500

3,750

4,000

4,250

4,500

Q1 Q2 Q3 Q4Slide 11

0

343

232

-28

357

-100

0

100

200

300

400

500

600

700

Q1 Q2 Q3 Q4

($ million)2007-08 2008-09


Slide 12

($ million)2007-08 2008-09


-287

-318

-120

-496

-100

0

100

200

300

400

500

600

700

Q1 Q2 Q3 Q4Slide 13

($ million)2007-08 2008-09

GROUP NET PROFIT GROUP NET PROFIT –– FY2008/09 ($ million)FY2008/09 ($ million)

0

100

200

300

400

500

600

42

359 337324

Q1 Q2 Q3 Q4Slide 14

FULL YEAR2008-09

$1,062M

Q1 Q2 Q3 Q4

($ million)2007-08 2008-09

GROUP NET PROFIT GROUP NET PROFIT –– FY2008/09 ($ million)FY2008/09 ($ million)

-184-253

-65

-486

0

100

200

300

400

500

600

Slide 15

FULL YEAR2008-09

$1,062M

c$988M(-48.2%)

1,062

2009

GROUP NET PROFIT GROUP NET PROFIT –– FY2008/09FY2008/09

2008

($ million)

0

400

800

1,200

1,600

2,000

2,400

2008 Non-operating

items

Lower interest

receivable & others

-128

OperatingProfit

Loweroperating

profit

-1,221

Tax writeback of $138m & others

Tax and Others

+362

2,049

2009

- 988

2,049

1,062

Slide 16

THE PARENT AIRLINETHE PARENT AIRLINEFY2008FY2008--0909

RESULTSRESULTS

THE PARENT AIRLINE COMPANY THE PARENT AIRLINE COMPANY RESULTS RESULTS –– FY2008/09 ($ million)FY2008/09 ($ million)

49.949.9--1,644.01,644.0822.9822.9Operating ProfitOperating Profit

10.010.0++(11,115.6)(11,115.6)(12,226.6)(12,226.6)Total ExpenditureTotal Expenditure

2.32.3++12,759.612,759.613,049.513,049.5Total RevenueTotal Revenue

% Change% Change20072007--080820082008--0909

Slide 18

18.9+(4,240.3)(5,043.1)- Fuel Costn.m.185.4(306.3)- Fuel Hedging (Loss)/Gain2.6-(7,060.7)(6,877.2)- Ex-fuel Cost

THE PARENT AIRLINE COMPANY THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE OPERATING PERFORMANCE –– FY2008/09FY2008/09

++

% Change% Change

3.33.3

++ 4.24.2 ptspts69.469.473.673.6Passenger Passenger Breakeven Load Breakeven Load Factor (%)Factor (%)

++ 9.59.58.48.49.29.2Unit Cost Unit Cost ((¢¢/ask)/ask)

12.112.112.512.5Passenger Yield Passenger Yield ((¢¢//pkmpkm))

20072007--080820082008--0909

Slide 19


Capacity (ASK)3.4%

70

80

90

100

110

120

130

2008 2009

(Billion KM)

ASK

RPK

Passenger Carriage (RPK)

1.5%76.580.3

PLF

Pax. Load Factor (%)

3.8% pts0

Slide 20


––

% Change% Change

3.83.8 ptspts

–– 8.08.0 ptspts10.9 pts10.9 pts2.9 pts2.9 ptsPassenger Load Passenger Load Factor Spread (%)Factor Spread (%)

++ 4.24.2 ptspts69.469.473.673.6Passenger Passenger Breakeven Load Breakeven Load Factor (%)Factor (%)

80.380.376.576.5Passenger Load Passenger Load Factor (%)Factor (%)

20072007--080820082008--0909

Slide 21


68

72

76

80

84

2005 2006 2007 2008 2009

75.6

79.280.3

76.5

74.1

70.8

72.5

69.4

73.6

69.3

Passenger Load Factor

Breakeven Load Factor

(%)

0

Slide 22

4.8

6.710.9 2.9

4.8

-21.8

4.8

-30

-25

-20

-15

-10

-5

0

5

10

15

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

Year-on-Year Percentage Change in PKM(%)

THE PARENT AIRLINE COMPANY THE PARENT AIRLINE COMPANY MONTHLY PASSENGERMONTHLY PASSENGER--KMKM

Slide 23

THE PARENT AIRLINE COMPANY THE PARENT AIRLINE COMPANY MONTHLY PASSENGER LOAD FACTORMONTHLY PASSENGER LOAD FACTOR

2007-08 2008-09

Slide 24

79.780.8

76.4

69.466

68

70

72

74

76

78

80

82

84

86

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

(%)

THE PARENT AIRLINE COMPANY THE PARENT AIRLINE COMPANY COST COMPOSITION COST COMPOSITION –– FY2008/09FY2008/09

Fuel43.8%

(+7.3% pts)

Airport Handling6.8%

(-0.1% pt)

Aircraft Depreciation & Rentals

14.0% (+1.4% pts)

Staff 12.5%

(--4.1% pts)

Sales Cost5.0%

(-0.9% pt)

Others17.9%

(-3.6% pts)

Slide 25

THE PARENT AIRLINE COMPANYTHE PARENT AIRLINE COMPANYFUEL EXPENDITURE FUEL EXPENDITURE –– FY2008/09FY2008/09

($ million)

3,500

4,000

4,500

5,000

5,500

2008

4,055

Volume

Higher volumeuplifted

+145

Price

Higherweighted average

fuel price

+860

Exchange

WeakerUS Dollar

-202

Hedging

+491

HedgingLosses

Vs Gains

+1,294

2009

5,349

0

Slide 26

DIVIDENDSDIVIDENDS

DIVIDENDS DIVIDENDS –– FY2008/09FY2008/09

168.5168.589.689.6Earnings Per Share (Earnings Per Share (¢¢))

20.020.020.020.0Interim Dividend Per Interim Dividend Per Share Paid (Share Paid (¢¢))

20072007--080820082008--0909

Proposed Final Proposed Final Dividend Per Share (Dividend Per Share (¢¢)) 80.080.020.020.0

Total Ordinary Total Ordinary Dividend Per Share (Dividend Per Share (¢¢)) 100.0100.040.040.0

Slide 28

DIVIDEND DIVIDEND ININ--SPECIE OF SPECIE OF SHARES IN SATS SHARES IN SATS

OBJECTIVESOBJECTIVES

Unlock Shareholder Value

Enable SIA to Concentrate on Airline and Aircraft Maintenance, Repair and Overhaul (MRO) Businesses

Give SIA Shareholders Direct Interest Without Additional Cash Outlay

Slide 30

UNLOCKING SHAREHOLDER VALUEUNLOCKING 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 SIA Flexibility to separately manage portfolio holdings of SIA 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

RATIONALERATIONALE

Enables SIA to concentrate on airline and Enables SIA to concentrate on airline and aircraft MRO businesses.aircraft MRO businesses.

SATS increased its exposure to NonSATS increased its exposure to Non--aviation aviation businesses.businesses.

* Fractional entitlements to be disregarded.

1 SIA share

1 SIA share

free of costretains

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

CONTINUITY OF OPERATIONSCONTINUITY OF OPERATIONS

New agreements signed on 8 May 2009 provides assurance New agreements signed on 8 May 2009 provides assurance to SIA that SATS will continue to supply ground handling to SIA that SATS will continue to supply ground handling and inand 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 SIA for three Provide SATS with assurance of revenue from SIA for three to five years from 1 October 2009. to five years from 1 October 2009.

Slide 33

FINANCIAL EFFECTSFINANCIAL EFFECTS

SIASIA’’ss EPS reduced, but EPS reduced, but SIA shareholders will SIA 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 SIASIA’’ss perspective, perspective, no significant impact on no significant impact on ROE.ROE.

SIASIA’’ss gross gearing is gross gearing is reduced as it dereduced as it de--consolidates SATS consolidates SATS $200m notes.$200m notes.

79.6

89.6

0

20

40

60

80

100

BeforeDistribution

AfterDistribution

EPS

(cen

ts)

12.0%11.0%

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

BeforeDistribution

AfterDistribution

Gea

ring

Rat

io (%

)

7.3% 7.0%

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

BeforeDistribution

AfterDistribution

RO

E (

%)

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

APPROVALSAPPROVALS

ShareholdersShareholders’’ approval at an extraordinary general approval at an extraordinary general meeting; andmeeting; and

Regulatory approvalsRegulatory approvals11. .

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

Slide 35

LOOKINGLOOKINGAHEADAHEAD

LOOKING AHEADLOOKING AHEAD–– FY2009/10FY2009/10

Fleet Development

Capital Expenditure

Outlook

Slide 37

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

99Operating Fleet at 31 March 2010

5

7

(3)

Aircraft Deliveries/(Disposals)

Airbus A380-800

Airbus A330-300

Boeing 747-400

103Operating Fleet at 1 April 2009

No. of Aircraft

(13)Surplus Aircraft

Slide 38

GROUP CAPITAL EXPENDITURE GROUP CAPITAL EXPENDITURE FOR NEXT 5 YEARS ($ million)FOR NEXT 5 YEARS ($ million)

2,9002,900

100100

2,8002,800

FY10/11FY10/11

1,8001,800

100100

1,7001,700

FY11/12FY11/12

2,1002,100

100100

2,0002,000

FY12/13FY12/13

3,8003,8001,7001,700TotalTotal

100100100100Other AssetsOther Assets

3,7003,7001,6001,600AircraftAircraft

FY13/14FY13/14FY09/10FY09/10

Slide 39

OUTLOOKOUTLOOK–– FY2009/10FY2009/10

Drop in Demand for Air Travel

Outlook – Advance Bookings

Jet Fuel Prices

Capacity and Cost Management

Slide 40

Documents

SINGAPORE AIRLINES GROUP ANALYSTS / MEDIA BRIEFING...Q1 Q2 Q3 Q4 ($ million) 2007-08 2008-09 GROUP NET PROFIT – FY2008/09 ($ million)-184-253-65-486 0 100 200 300 400 500 600 Slide