THE PARENT AIRLINE Q2 & H1 FY2015/16 RESULTS · 1 sia analyst/media briefing q2 & h1 fy2015/16 results 6 november 2015 the parent airline q2 & h1 fy2015/16 results

1

SIA ANALYST/MEDIA BRIEFINGQ2 & H1 FY2015/16 Results

6 November 2015

THE PARENT AIRLINEQ2 & H1 FY2015/16

RESULTS

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THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2015/16

Passenger Load Factor (%)

Revenue Pax-KM (million)

Available Seat-KM (million)

Slide 3

83.7

25,177

30,082

+1.8 pts

+0.6

-1.6

Q2 15/16%

Change

80.0

47,691

59,602

+0.2 pts

-1.7

-2.0

H1 15/16%

Change


Passenger Yield(¢/pkm)

Slide 4

10.4 -4.6

Q2 15/16%

Change

10.5 -3.7

H1 15/16%

Change

3

10.810.9

11.111.2

10.8

11.3

11.1 11.111.3

10.9

11.111.3

10.7

10.9

10.7

11.2

11.511.4 11.4 11.411.4

11.5

10.7

10.510.4

10.1

10.6

¢/pkm

10

11

12

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

FY13/14 FY14/15 FY15/16


Monthly Pax Yields (Including Fuel Surcharge)

Slide 5


Passenger Breakeven Load Factor (%)

Passenger Unit Ex-Fuel Cost(¢/ask)

Passenger Unit Cost(¢/ask)

Slide 6

83.7

5.5

8.7

+1.1 pts

+7.8

-3.3

Q2 15/16%

Change

81.9

5.3

8.6

+1.2 pts

+6.0

-2.3

H1 15/16%

Change

Passenger Yield(¢/pkm)

10.4 -4.6 10.5 -3.7

4

81.980.7

82.7

78.079.8

%

79.6 79.8

75.4

79.6 80.077.5

60

65

70

75

80

85

90

H1 11/12 H1 12/13 H1 13/14 H1 14/15 H1 15/16

-0.2-3.1 -0.9 -1.9

-0.5

THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE

Passenger Load Factor

Breakeven Load Factor

Slide 7

THE PARENT AIRLINE COMPANY RESULTS – FY2015/16

Slide 8

98Operating Profit (40)

2,900Total Expenditure

717Fuel Cost245Fuel Hedging Loss

1,938- Ex-fuel Cost

185

458(226)

(47)

2,998Total Revenue

Q2 15/16$million

(225)

Better/(Worse)$million

3.3Operating Profit Margin (%)

(1.0) pts

- Net Fuel Cost 962 232

23206

3475,701

(324)5,907

H1 15/16$million

8531,500(466)456

(40)3,745

Better/(Worse)$million

0.6 pts3.5

3871,956

5

Fuel Cost Post Hedging1,956.0 (-387.1, -16.5%)

Others585.3 (-15.4, -2.6%)

Aircraft Depreciation & Lease Rentals943.6 (+35.8, +3.9%)

Handling Charges443.8 (+3.5, +0.8%)

Passenger Costs336.7 (-7.9, -2.3%)

Staff 777.6

(-0.2, N.A.)

AMO Costs 367.0 (+39.7, +12.1%)

LPO* Charges 291.1 (-15.3, -5.0%)

*Landing, Parking and Overflying

THE PARENT AIRLINE COMPANY COST COMPOSITION – H1 FY2015/16 ($M)

Slide 9

($ million) (USD/BBL)

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16

90

136

130

133 133

122

102

74

77

67

9498

115

135132 134

123 121

10398

90

119

99

400

600

800

1,000

1,200

1,400

1,600

1,800

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

1,04

3

924

899

1,20

5

1,17

9

994

1,01

1

1,18

2

1,19

4

962

1,26

8

Fuel Cost after hedgingFuel Price before hedgingFuel Price after hedging

THE PARENT AIRLINE COMPANY FUEL PRICE AND EXPENDITURE - TREND

Slide 10

6

2,343

1,500

2,000

2,500

H1FY14/15

$M

1,956

H1FY15/16

-965

Price

Lowerweighted average

fuel price

-15

Volume

Lower volume uplifted

+118

Exchange

Stronger USD

against SGD

+466

Hedging

Hedging loss vs

gain last year +9

Others

Others -387(-16.5%)

THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – H1 FY2015/16

Slide 11

¢/ask

0

2

4

6

8

10

H1 FY14/15 H1 FY15/16

Unit Fuel Cost

Unit Staff Cost

4.03.7

1.31.3

3.8 3.3 (-13.2%)

(+8.1%)

(-)

8.8 8.6

THE PARENT AIRLINE COMPANY UNIT COST ANALYSIS – H1 FY2015/16

Unit Other Cost

Slide 12

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SIA GROUP Q2 & H1 FY2015/16

RESULTS

3,682 3,708

3,905

3,565

3,914

3,677

3,200

3,400

3,600

3,800

4,000

Q1 Q2 Q3 Q4 Q1 Q2

GROUP REVENUE – FY2015/16

($ million)

Slide 14

H1 15/16Revenue$7,578M

Year-on-Year$9M-0.1%

3,845

3,733

FY14/15 FY15/16


H1 15/16Revenue$7,242M3,733

3,845

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GROUP EXPENDITURE – FY2015/16

($ million)

Slide 15

H1 15/16Expenditure

$7,338M3,622

3,716

FY14/15 FY15/16

3,454

3,538

3,603

3,7713,773

3,643

3,200

3,400

3,600

3,800

4,000

Q1 Q2 Q3 Q4 Q1 Q2



H1 15/16 Expenditure

$6,992M3,622

3,716

39

132

105

139143

0

50

100

150

200

Q1 Q2 Q3 Q4 Q1 Q2

GROUP OPERATING PROFIT– FY2015/16

($ million)

Slide 16

H1 15/16 Op Profit$240M

Year-on-Year$69M+40.4%

FY14/15 FY15/16

129

H1 15/16Op Profit$250M

Year-on-Year$79M+46.2%

111

9

11+3748SIA Engineering

23+183206Singapore Airlines

H1 15/16

21+526SilkAir

22+(34)(12)SIA Cargo

H1 14/15 Change

CONTRIBUTION TO GROUP OPERATING PROFIT – FY2015/16 ($ million)

29.7+

12.6+

n.m.+

64.7

% Change

+

Slide 17

22+(44)(22)Scoot 50.0+

GROUP NET PROFIT – FY2015/16

($ million)

Year-on-Year+$179M+142.1%

Slide 18

368

H1 15/16Net Profit

$305M

168

126

239

282305

0

100

200

300

400

H1 FY11/12

H1 FY12/13

H1 FY13/14

H1 FY14/15

H1 FY15/16

10

126

0

100

200

300

400

H1 FY14/15

Tax

-49

Expense this year vs credit last year

+98

Dividend

Higher dividends from AIH

+117

Associates

Lower share of losses

+1

Others

-57

Disposalof aircraft,spares &spare engines

Loss this year vs

gain last year

+69

OperatingProfit

Higher operating

profit

305

H1 FY15/16

+179 (+142.1%)

GROUP PROFIT ATTRIBUTABLE TO OWNERS OF PARENT – H1 FY2015/16

($ million)

Slide 19

Slide 20

5.010.0Interim Dividend Per Share (¢)

1.091.39EBITDAR Per Share ($)

1H 14151H 1516

10.6610.83Net Asset Value Per Share ($)

At 31 Mar 15At 30 Sep 15

10.726.1Earnings Per Share (¢)

GROUP RESULTS – 1H FY2015/16

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FLEET DEVELOPMENT – SIA

Slide 21

No. of AircraftOperating Fleet as at 30 September 2015 104

IN: Delivery of A350-900s + 3Entry of A330-300 into service + 1Entry of 777-300ER into service + 1Delivery of 777-300ER + 1

OUT: Decommissioned A330-300s - 2Decommissioned 777-300 - 1Decommissioned 777-200ER - 1

Operating Fleet as at 31 March 2016 106

FLEET DEVELOPMENT – SLK

Slide 22


IN: Delivery of 737-800 + 1

OUT: Decommissioned A319-100 - 1


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FLEET DEVELOPMENT – SCOOT

Slide 23


IN: Delivery of 787-8s + 2Delivery of 787-9 + 1

OUT: Decommissioned 777-200 - 1


FLEET DEVELOPMENT – TIGER

Slide 24


OUT: Decommissioned A320 - 1


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GROUP CAPITAL EXPENDITURE

FY16/17 FY17/18 FY18/19 FY19/20 FY20/21

Aircraft 3,000 4,300 5,100 5,000 3,900

Other Assets 100 150 150 100 100

Total 3,100 4,450 5,250 5,100 4,000

Slide 25

GROUP FUEL HEDGING POSITION

For the period Oct 15 to Mar 16

Jet Fuel

Percentage hedged (%) 50.7*

Average hedged price (USD/BBL) 93*

Slide 26

*includes Brent contracts which have been rolled over to MOPS.

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STRATEGIC DEVELOPMENTS

SIA

SERVICE

Slide 28

PRODUCT NETWORK

CEM Cabin Lounge New Aircraft

Organic Partnerships

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PORTFOLIO STRATEGY

Slide 29

Pos

itio

ning

Markets

LowCost

FullService

Regional Long-Haul

PORTFOLIO STRATEGY

Slide 30

Pos

itio

ning

Markets

LowCost

FullService

Regional Long-Haul

SYNERGIES

Shared Services

CommonFFP

Integrated Network

Cross Selling

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Vistara

Currently has 8 Airbus A320s; 9 by Dec 2015

12 cities and 297 weekly flights. Up to 325 weekly flights by Dec 2015

2 new destinations –BBI (1 Oct 2015) & VNS (21 Oct 2015)

Highest on-time performance and lowest complaints amongst all Indian domestic airlines

MULTI-HUBS

Slide 31

NokScoot Low cost carrier based in Don Mueang International Airport, Bangkok Expanding its operation in 2H 2015 –

Nanjing in June (from 4x to 6x weekly), Taipei in October (4x weekly) Qingdao in November (4x weekly)

Focused on China in part due to restriction in operating to Korea and Japan

MULTI-HUBS

Slide 32

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Airbus Asia Training Centre

A350 simulator entered into service in Oct 2015 – first course delivered in Asia Pacific on A350

A320 simulator ordered and due to enter into service in Apr 2016

Relocation to Seletar state-of-the-art facility planned for Mar 2016

Start of operation in the new building planned for 1 Apr 2016

NEW REVENUE/BUSINESS

Slide 33

Thank You

Documents

THE PARENT AIRLINE Q2 & H1 FY2015/16 RESULTS · 1 sia analyst/media briefing q2 & h1 fy2015/16 results 6 november 2015 the parent airline q2 & h1 fy2015/16 results