SIA ANALYST/MEDIA BRIEFING

Q2 & H1 FY2015/16 Results

6 November 2015

THE PARENT AIRLINE

Q2 & H1 FY2015/16
RESULTS

THE PARENT AIRLINE COMPANY

OPERATING PERFORMANCE FY2015/16
Q2 15/16

%
Change

H1 15/16

%
Change

Available Seat-KM
(million)

30,082

-1.6

59,602

-2.0

Revenue Pax-KM
(million)

25,177

+0.6

47,691

-1.7

Passenger Load
Factor (%)

83.7

+1.8 pts

80.0

+0.2 pts

Slide 3

THE PARENT AIRLINE COMPANY

OPERATING PERFORMANCE FY2015/16
%
Q2 15/16 Change
Passenger Yield
(/pkm)

10.4

-4.6

H1 15/16

10.5

%
Change

-3.7

Slide 4

THE PARENT AIRLINE COMPANY

OPERATING PERFORMANCE FY2015/16
Monthly Pax Yields (Including Fuel Surcharge)
FY13/14

FY14/15

FY15/16

/pkm
12

11.1
11

11.5

11.1

11.1

11.3

11.2

11.2

10.9

10.8 10.8

10.9

11.4

11.4

11.4

11.4

11.3

11.3

11.1
10.9

10.6

10.7

10.7 10.7
10.5

11.5

10.4
10.1

10
Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Slide 5

THE PARENT AIRLINE COMPANY

OPERATING PERFORMANCE FY2015/16
%
Q2 15/16 Change
Passenger Yield
(/pkm)

H1 15/16

%
Change

10.4

-4.6

10.5

-3.7

Passenger Unit Cost

(/ask)

8.7

-3.3

8.6

-2.3

Passenger Unit ExFuel Cost

(/ask)

5.5

+7.8

5.3

+6.0

Passenger Breakeven
Load Factor (%)

83.7

+1.1 pts

81.9

+1.2 pts

Slide 6

THE PARENT AIRLINE COMPANY

OPERATING PERFORMANCE
Passenger Load Factor

Breakeven Load Factor

90
85
80
75

75.4

78.0
77.5

82.7

79.8
-0.2
79.6
79.6
-0.5

80.7

-3.1

79.8

81.9
-1.9

-0.9

80.0

70
65
60

H1 11/12

H1 12/13

H1 13/14

H1 14/15

H1 15/16

Slide 7

THE PARENT AIRLINE COMPANY

RESULTS FY2015/16
Better/
(Worse)
Q2 15/16
$million $million

H1 15/16
$million

Better/
(Worse)
$million

Total Revenue

2,998

(225)

5,907

(324)

Total Expenditure
- Net Fuel Cost

2,900

185

5,701

347

962

232

1,956

387

717
245

458
(226)

1,500
456

853
(466)

1,938

(47)

3,745

(40)

(40)

206

23

3.5

0.6 pts

Fuel Cost
Fuel Hedging Loss

- Ex-fuel Cost

Operating Profit
Operating Profit Margin
(%)

98
3.3

(1.0) pts

Slide 8

THE PARENT AIRLINE COMPANY

COST COMPOSITION H1 FY2015/16 ($M)

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

Others
585.3 (-15.4, -2.6%)
Fuel Cost Post Hedging
1,956.0 (-387.1, -16.5%)

Passenger Costs
336.7 (-7.9, -2.3%)
AMO Costs
367.0 (+39.7, +12.1%)

Handling Charges
443.8 (+3.5, +0.8%)

Staff
777.6
(-0.2, N.A.)

Aircraft Depreciation & Lease Rentals

943.6 (+35.8, +3.9%)

*Landing, Parking and Overflying

Slide 9

THE PARENT AIRLINE COMPANY

FUEL PRICE AND EXPENDITURE - TREND
Fuel Cost after hedging
Fuel Price before hedging
Fuel Price after hedging
136

102

110
98

90

1,194

1,182

1,268

77
67

74
1,011

924

899

800

120
103

98

1,000

130

123 121

130

1,179

90

99

(USD/BBL)
140

133

122

1,205

1,200

94

134

115

1,043

1,400

133

994

119

1,600

135

132

100
90
80
70
60

962

($ million)
1,800

50
40
30
20

600

10

400

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

Slide 10

THE PARENT AIRLINE COMPANY

FUEL EXPENDITURE H1 FY2015/16
$M
2,500

2,343

Lower
weighted
average
fuel price
Hedging
loss vs
gain last
year

2,000

Stronger
USD
against
SGD

Lower
volume
uplifted

Others

-15

+9

+118

-387
(-16.5%)

1,956

1,500
-965
H1
FY14/15

Price

+466
Hedging Exchange Volume

Others

H1
FY15/16

Slide 11

THE PARENT AIRLINE COMPANY

UNIT COST ANALYSIS H1 FY2015/16
/ask

10
8.8

8.6

8
3.8

Unit Fuel Cost

3.3 (-13.2%)

1.3

Unit Staff Cost

1.3 (-)

3.7

Unit Other Cost

4.0

6
4
2

(+8.1%)

0
H1 FY14/15

H1 FY15/16

Slide 12

SIA GROUP
Q2 & H1 FY2015/16
RESULTS

GROUP REVENUE
FY2015/16
($ million)
4,000

3,905

3,914

3,800

3,708

3,682

H1
H1 15/16
15/16
Revenue
Revenue
$7,242M
$7,578M

3,845
3,733
3,677

3,600

3,565

Year-on-Year
$9M
$345M
-0.1%
-4.5%

3,400

3,200

Q1
Slide 14

Q2
Q3
FY14/15

Q4

Q1
Q2
FY15/16

GROUP EXPENDITURE
FY2015/16
($ million)
4,000

3,773

3,800

3,771

3,643

3,716
3,603

3,600

H1 15/16
Expenditure
$6,992M
$7,338M

3,622
3,538

Year-on-Year
$78M
$424M
-1.1%
-5.7%

3,454

3,400

3,200

Q1

Q2

Q3

Q4

FY14/15

Slide 15

Q1

Q2

FY15/16

GROUP OPERATING PROFIT

FY2015/16
($ million)
200

150

132

143

50

0
Slide 16

139
105

100

H1 15/16
Op Profit
$250M
$240M
129

111

Year-on-Year
Year-on-Year
$69M
$79M
+40.4%
+46.2%

39

Q1

Q2
FY14/15

Q3

Q4

Q1

Q2

FY15/16

CONTRIBUTION TO GROUP OPERATING PROFIT

FY2015/16 ($ million)
H1 15/16 H1 14/15

Change

% Change

206

183

+ 23

+ 12.6

SIA Engineering

48

37

+ 11

+ 29.7

SilkAir

26

+ 21

+ n.m.

SIA Cargo

(12)

(34)

+ 22

+ 64.7

Scoot

(22)

(44)

+ 22

+ 50.0

Singapore Airlines

Slide 17

GROUP NET PROFIT

FY2015/16
($ million)
400

305

282

300

239
200

H1 15/16
Net Profit
$305M
Year-on-Year
+$179M
+142.1%

168
126

368

100

H1
FY11/12

H1
FY12/13

H1
FY13/14

H1
FY14/15

H1
FY15/16

Slide 18

GROUP PROFIT ATTRIBUTABLE TO OWNERS OF

PARENT H1 FY2015/16
($ million)
Higher
dividends
from AIH

400

Higher
operating
profit

-49
+69

Lower
share of
losses

300

-57

+98
200

Loss this
year vs
gain last Expense
this year
year
vs credit
last year

305
+1
+179
(+142.1%)

126
+117

100

H1
Tax
Associates Dividend Operating Disposal
FY14/15
Profit
of aircraft,
spares &
spare engines
Slide 19

Others

H1
FY15/16

GROUP RESULTS
1H FY2015/16
1H 1516

1H 1415

EBITDAR Per Share ($)

1.39

1.09

Earnings Per Share ()

26.1

10.7

Interim Dividend Per

Share ()

10.0

5.0

At 30 Sep 15

At 31 Mar 15

10.83

10.66

Net Asset Value Per

Share ($)

Slide 20

10

FLEET DEVELOPMENT SIA

No. of Aircraft
Operating Fleet as at 30 September 2015

104

IN:

Delivery of A350-900s

+3

Entry of A330-300 into service

+1

Entry of 777-300ER into service

+1

Delivery of 777-300ER

+1

OUT: Decommissioned A330-300s

-2

Decommissioned 777-300

-1

Decommissioned 777-200ER

-1

Operating Fleet as at 31 March 2016

106

Slide 21

FLEET DEVELOPMENT SLK

No. of Aircraft
Operating Fleet as at 30 September 2015
IN:

29

Delivery of 737-800

+1

OUT: Decommissioned A319-100

-1

Operating Fleet as at 31 March 2016

29

Slide 22

11

FLEET DEVELOPMENT SCOOT

No. of Aircraft
Operating Fleet as at 30 September 2015
IN:

Delivery of 787-8s

+2

Delivery of 787-9

+1

OUT: Decommissioned 777-200

-1

Operating Fleet as at 31 March 2016

10

Slide 23

FLEET DEVELOPMENT TIGER

No. of Aircraft
Operating Fleet as at 30 September 2015

24

OUT: Decommissioned A320

-1

Operating Fleet as at 31 March 2016

23

Slide 24

12

GROUP CAPITAL EXPENDITURE

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

Aircraft
Other Assets

Total

3,000

4,300

5,100

5,000

3,900

100

150

150

100

100

3,100

4,450

5,250

5,100

4,000

Slide 25

GROUP FUEL HEDGING POSITION

For the period

Oct 15 to Mar 16
Percentage hedged
(%)
Average hedged
price
(USD/BBL)

Jet Fuel

50.7*

93*

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

Slide 26

13

STRATEGIC
DEVELOPMENTS

SIA

SERVICE

CEM

PRODUCT

Cabin
Lounge
New Aircraft

NETWORK

Organic
Partnerships

Slide 28

14

PORTFOLIO STRATEGY

Positioning

Full
Service

Low
Cost
Regional

Long-Haul
Markets

Slide 29

PORTFOLIO STRATEGY
Full
Service

Positioning

SYNERGIES
Shared
Services

Common
FFP

Cross
Selling

Low
Cost
Regional

Integrated
Network

Long-Haul
Markets

Slide 30

15

MULTI-HUBS
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

Slide 31

MULTI-HUBS
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

Slide 32

16

NEW REVENUE/BUSINESS
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

Slide 33

Thank You

17