singapore airlines group analyst / media briefing · $1,271m year-on-year $1,208m 1,195 (-119)...

SINGAPORE AIRLINES GROUPSINGAPORE AIRLINES GROUPANALYST / MEDIA BRIEFINGANALYST / MEDIA BRIEFING

FY2010FY2010--11 RESULTS11 RESULTS13 MAY 201113 MAY 2011

THE PARENT AIRLINEFY2010/11

RESULTS

THE PARENT AIRLINE COMPANY RESULTS – FY2010/11

Slide 3

94Operating Profit

2,832Total Expenditure

2,926Total Revenue

4Q/10$million

1,076- Fuel Cost(33)- Fuel Hedging (Gain)/Loss

1,789- Ex-fuel Cost

(65)

(307)

242

Better/(Worse)$million

(242)49

(114)

890851

(704)10,888

1,59411,739

2010/11$million

(678)3,75541050

(436)7,083

Better/(Worse)$million

THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2010/11

Passenger Load Factor (%)

Revenue Pax-KM (million)

Available Seat-KM (million)

Slide 4

75.5

20,758

27,487

4Q/10

4.5-

0.5-

5.3+

% Change

pts 78.5

84,801

108,060

2010/11

0.1+

2.3+

2.3+

% Change

pt


Slide 5

Passenger Breakeven Load Factor (%)

Passenger Unit Cost (¢/ask)

Passenger Yield (¢/pkm)

75.2

9.1

12.1

2.3-

5.8+

9.0+

pts

4Q/10 % Change

74.8

8.9

11.9

7.9-

3.5+

14.4+

pts

2010/11 % Change


Slide 6

Passenger Load Factor Spread (% pts)

Passenger Breakeven Load Factor (%)

Passenger Load Factor (%)

0.3

75.2

75.5

2.2-

2.3-

4.5-

pts

pts

pts

4Q/10 % Change

3.7

74.8

78.5

8.0+

7.9-

0.1+

pts

pt

pts

2010/11 % Change

THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE

Slide 7

(%)

Passenger Load Factor

06/07 07/08 08/09 09/10 10/11

80.3

76.5

79.2 78.5

0

64

68

72

76

80

84

78.478.4


Slide 8

(%)

Passenger Load Factor

06/07 07/08 08/09 09/10 10/11

80.3

76.5

79.2 78.5

0

64

68

72

76

80

84

78.4

Breakeven Load Factor

82.7

69.4

73.674.8

72.5

78.4


Slide 9

(%)

Passenger Load FactorBreakeven Load Factor

06/07 07/08 08/09 09/10 10/11

80.3

76.5

79.2 78.5

82.7

69.4

73.674.8

72.5

0

64

68

72

76

80

84

6.7 10.9 2.93.7

-4.378.4


Passenger Yield

12.1

9.8

12.8

0

9

10

11

12

13

14

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

\

(¢/PKM)

2008/09 2009/10 2010/11

Slide 10

THE PARENT AIRLINE COMPANY COST COMPOSITION – FY2010/11

Fuel35.0%

(+0.3% pt)Passenger Costs5.1%

(-0.2% pt)

Aircraft Depreciation

& Rentals 17.0% (-0.7% pt)

Staff Costs14.2%

(+0.7+0.7% pt)

Handling Costs7.4%

(-0.3% pt)

Others21.3%

(+0.2% pt)

Slide 11

THE PARENT AIRLINE COMPANY TOP 5 EXPENDITURE – FY2010/11

Slide 12

0 1,000 2,000 3,000 4,000 5,000

Passenger Costs

Handling Costs

Staff Costs

Aircraft Depr. &Lease Rentals

Fuel

FY09/10

FY10/11803 (+2.0%)

560 (+3.3%)

1,854 (+3.1%)

1,550 (+12.8%)

3,805 (+7.6%)

($ million)

($ million)

0

3,000

3,500

4,000

4,500

5,000

FY09/10 Price Volume Exchange Hedging FY10/11

+841

Higherweighted average

fuel price

+100

Higher volumeuplifted

-263

WeakerUS Dollar

-410

Lower Hedging Losses

3,537

3,805(+268)

THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – FY2010/11

THE PARENT AIRLINE COMPANY COST COMPOSITION – 4Q FY2010/11

Fuel36.8%

(+3.1% pts)Sales Costs4.9%

(-0.3% pt)

Aircraft Depreciation

& Rentals 16.9% (-0.6% pt)

Staff Costs14.0%

(+0.6+0.6% pt)

Handling Costs7.2%

(-0.3% pt)

Others20.2%

(-2.5% pts)

Slide 14

($ million)

FY09/10 Price Volume Exchange Hedging FY10/11

+308

Higherweighted average

fuel price

-103

WeakerUS Dollar

-49

Hedging Gains

vsLosses

851

THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – 4Q FY2010/11

1,043(+193)

0

200

400

600

800

1,000

1,200+37

Higher volumeuplifted

THE PARENT AIRLINE COMPANY FUEL PRICE AND EXPENDITURE - TREND

Fuel Expenditure (before hedging)($ million)

1,076

938866875834815796

631

0

600

800

1,000

1,200

1,400

1,600

1Q/PY 2Q/PY 3Q/PY 4Q/PY 1Q/CY 2Q/CY 3Q/CY 4Q/CY

119

99

64

90

Fuel Price (USD/BBL)

40

50

60

70

80

90

100

110

120

130

Slide 16

THE GROUPFY2010/11

RESULTS

($ million)2009/10(Proforma)

GROUP REVENUE – FY2010/11

0

2,750

3,000

3,250

3,500

3,750

4,000

Q1 Q2 Q3 Q4

Slide 18

2010/11

3,5873,631

3,841

3,466

3,305

2,944

3,429

2,659

($ million)2010/11


2,750

3,000

3,250

3,500

3,750

4,000

Q1 Q2 Q3 Q4

Slide 19

+807(+30%)

+687(+23%)

+412(+12%)

+282(+9%)

0

2009/10(Proforma)

($ million)

GROUP EXPENDITURE – FY2010/11

($ million)

2,750

3,000

3,250

3,500

3,750

4,000

Q1 Q2 Q3 Q4

Slide 20

2010/11

3,4213,286 3,332

3,215

3,0643,155

3,1063,025

0

2009/10(Proforma)

($ million)2010/11


($ million)

2,750

3,000

3,250

3,500

3,750

4,000

Q1 Q2 Q3 Q4

Slide 21

+190(+6%)

+131(+4%)

+226(+7%)

+357(+12%)

0

2009/10(Proforma)

GROUP OPERATING PROFIT/(LOSS) – FY2010/11

-400

-300

-200

-100

0

100

200

300

400

500

600

Q1 Q2 Q3 Q4

($ million)

Slide 22

2010/11

166

345

509

251 241

-211

323

-366

2009/10(Proforma)

+617(n.m.)

GROUP OPERATING PROFIT/(LOSS) – FY2010/11

-400

-300

-200

-100

0

100

200

300

400

500

600

Q1 Q2 Q3 Q4

2010/11($ million)

Slide 23

+556(n.m.)

+186(+58%)

-75(-31%)

n.m. not meaningful

2009/10(Proforma)

GROUP NET PROFIT/(LOSS)– FY2010/11

-400

-300

-200

-100

0

100

200

300

400

500

600

Q1 Q2 Q3 Q4

($ million)

Slide 24

171

380288253

2010/11

278

-182

404

-343

2009/10(Proforma)

+596(n.m.)

GROUP NET PROFIT/(LOSS)– FY2010/11

-400

-300

-200

-100

0

100

200

300

400

500

600

Q1 Q2 Q3 Q4

2010/11($ million)

Slide 25

+562(n.m.)

-116(-29%)

-107(-38%)

n.m. not meaningful

2009/10(Proforma)


14,494

15,973 15,997

12,708

14,525

0

13,000

14,000

15,000

16,000

06/07 07/08 08/09 09/10 10/11

Full Year Revenue

$14,525M

Year-on-Year$1,817M

(+14.3%)

($ million)

15,500

14,500

13,500

12,500

Slide 26


14,525

13,000

14,000

15,000

16,000

06/07 07/08 08/09 09/10 10/11

Full Year Revenue

$14,525M

Year-on-Year$1,817M

(+14.3%)

($ million)

14,146(-348)

15,632(-341)

15,537(-460)

12,337(-371)

Year-on-Year (ex-SATS)

$2,188M(+17.7%)

0

15,500

14,500

13,500

12,500

Slide 27


Half Year Revenue$7,097M

Full Year Expenditure$13,254M

Year-on-Year$609M

(+4.8%)

13,180

13,848

15,093

12,645

13,254

13,000

14,000

15,000

16,000

06/07 07/08 08/09 09/10 10/11

($ million)

0

15,500

14,500

13,500

12,500

Slide 28



Full Year Expenditure$13,254M

Year-on-Year$609M

(+4.8%)

12,951(-229)

13,662(-186)

14,825(-268)

12,350(-295)

13,254

13,000

14,000

15,000

16,000

06/07 07/08 08/09 09/10 10/11


$904M(+7.3%)

($ million)

15,500

14,500

13,500

12,500

0

Slide 29

GROUP OPERATING PROFIT/(LOSS)– FY2010/11


Full Year Op Profit$1,271M

Year-on-Year

$1,208M1,271

-500

0

500

1,000

1,500

2,000

2,500

06/07 07/08 08/09 09/10 10/11

($ million)

1,314

2,125

904

63

Slide 30

GROUP OPERATING PROFIT/(LOSS)– FY2010/11


Full Year Op Profit$1,271M

Year-on-Year

$1,208M1,195(-119)

1,970(-155)

712(-192)

-13(-76)

1,271

-500

0

500

1,000

1,500

2,000

2,500

06/07 07/08 08/09 09/10 10/11

($ million)


$1,284M

Slide 31

296+(145)151SIA Cargo

890+(39)851Singapore Airlines

2010/11

26+110136SIA Engineering

72+49121SilkAir

2009/10 Change

Slide 32

CONTRIBUTION TO GROUP OPERATING PROFIT – FY2010/11 ($ million)

GROUP NET PROFIT – FY2010/11

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Op Profit

1,271

Tax

-270

NonControllingInterests

-57

Net Profit

1,092

ProfitBefore Tax

1,419

NonOperating

Items

+350

Surplus on disposal of

aircraft, share of profits of

associated companies

and JVs, and others

ExceptionalItem

-202

Provision for fines

imposed on SIA Cargo

($ million)



Full Year Net Profit$1,092M

Year-on-Year

$876M

Slide 34

($ million)

1,092

0

500

1,000

1,500

2,000

2,500

06/07 07/08 08/09 09/10 10/11

2,129 2,049

1,062

216



Full Year Net Profit$1,092M

Year-on-Year

$876M

Slide 35

($ million)

1,953(-176)

1,915(-134)

924(-138)

157(-59)

1,092

0

500

1,000

1,500

2,000

2,500

06/07 07/08 08/09 09/10 10/11


$935M

($ million)


0

300

600

900

1,200

1,500

1,800

FY09/10(Proforma)

OperatingProfit

NonOperating

Items

ExceptionalItems

Tax andOthers

FY10/11

+1,284

Higheroperating

profit

+142

Higher surplus on disposal of aircraft and other non-operating

items

-202

Provision for fines

imposed on SIA Cargo

-289

Tax expense vs tax credit and others

157

1,092(+935)

Slide 36

18.291.4Earnings Per Share (¢)

PER SHARE STATISTICS – FY2010/11

2.253.33EBITDAR Per Share ($)

2009/102010/11

11.3011.89Net Asset Value Per Share ($)

At 31 Mar 10At 31 Mar 11

Slide 38

-20.0Interim Dividend Per Share (¢)

DIVIDENDS – FY2010/11

18.291.4Earnings Per Share (¢)

12.040.0Proposed Final Dividend Per Share (¢)

-80.0Proposed Special Dividend Per Share (¢)

2009/102010/11

OUTLOOK FOR 2011/12

Slide 40

Twin challenges of:

– High and volatile fuel prices

– Forward load concerns

CHALLENGES AHEAD

Two-and-half year high

25% surge in jet fuel prices since Jan11– Average price for Apr11: USD140/BBL

High and volatile forward prices– Continuing tensions in Middle East

Weaken fragile economic recovery

JET FUEL PRICES

JET FUEL PRICES

Sing Jet Kero Fuel Price Trend Since 30 Sep 10

(USD/BBL)

80

90

100

110

120

130

140

150

30-S

ep07

-Oct

14-O

ct21

-Oct

28-O

ct

04-N

ov11

-Nov

18-N

ov25

-Nov

02-D

ec09

-Dec

16-D

ec23

-Dec

30-D

ec06

-Jan

13-J

an20

-Jan

27-J

an03

-Feb

10-F

eb17

-Feb

24-F

eb03

-Mar

10-M

ar17

-Mar

24-M

ar31

-Mar

07-A

pr14

-Apr

21-A

pr28

-Apr

05-M

ay

Slide 41-A

North Asia and Middle East unrest

+USD39/BBL

UNCERTAIN ECONOMIC OUTLOOK

Negative outlook in US

Fears of sovereign debt crisis in Europe

Nuclear radiation in Japan

Forward bookings indicate weaker loads in near term

- 12

6

5

1

OUT:

Return to Lessor (5x B777s, 1x B744)

Sale (B744s)

Freighter conversion (B744)

+ 8IN: Delivery of A380-800

OUTLOOK FOR 2011/12- FLEET DEVELOPMENT

Slide 43

108Operating Fleet at 31 March 11

No. of Aircraft

104Operating Fleet at 31 March 12

OUTLOOK FOR 2011/12- GROUP CAPITAL EXPENDITURE

1,500

100

1,400

FY12/13

2,500

100

2,400

FY13/14

2,950

150

2,800

FY14/15

2,1002,200Total

15050Other Assets

1,9502,150Aircraft

FY15/16FY11/12

Singapore Airlines Limited Company Registration No.: 197200078R

Further information and media releases can be found at the Singapore Airlines internet website www.singaporeair.com.sg

singapore airlines group analyst / media briefing · $1,271m year-on-year $1,208m 1,195 (-119)...

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