Singapore Airlines Group Analyst/Media Briefing · 5 NOVEMBER 2012 THE PARENT AIRLINE 1H FY2012/13 RESULTS. THE PARENT AIRLINE COMPANY RESULTS – 2Q & 1H FY12/13 Slide 3 Operating

Singapore Airlines GroupSingapore Airlines GroupAnalyst/Media Briefing

HALF YEAR FY2012HALF YEAR FY2012--13 RESULTS13 RESULTS5 NOVEMBER 20125 NOVEMBER 2012

THE PARENT AIRLINETHE PARENT AIRLINE1H FY2012/131H FY2012/13

RESULTSRESULTS

THE PARENT AIRLINE COMPANY THE PARENT AIRLINE COMPANY RESULTS RESULTS –– 2Q & 1H FY12/132Q & 1H FY12/13

Slide 3

84Operating Profit (5)

3,057Total Expenditure

1,241- Fuel Cost(14)- Fuel Hedging (Gain)/Loss

1,830- Ex-fuel Cost

(113)

(72)24(65)

3,141Total Revenue

2Q/12$million

108

Better/(Worse)$million

2.7Operating Profit Margin (%)

(0.2) pt

116169

(194)6,076

3106,245

1H/12$million

(100)2,484(11)11(83)3,581

Better/(Worse)$million

1.8 pts2.7

THE PARENT AIRLINE COMPANY THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE OPERATING PERFORMANCE –– 2Q & 1H FY12/132Q & 1H FY12/13

Slide 4

23,895Revenue Pax-KM(million)

2Q/12

+6.5

% Change

79.8Passenger Load Factor (%)

+0.5 pt

29,952Available Seat-KM (million)

+5.8 +5.158,938

+2.1 pts79.6

+8.046,934

1H/12%

Change

Slide 5

Passenger Yield(¢/pkm)

Passenger Unit Cost(¢/ask)

Passenger Breakeven Load Factor (%)

11.4 -2.6

9.1 -1.1

79.8 +1.2 pts

THE PARENT AIRLINE COMPANY THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE OPERATING PERFORMANCE –– 2Q & 1H FY12/132Q & 1H FY12/13

2Q/12%

Change

-1.19.1

-3.411.4

+1.8 pts79.8

1H/12%

Change

THE PARENT AIRLINE COMPANY THE PARENT AIRLINE COMPANY OPERATING PERFORMANCEOPERATING PERFORMANCE

77.9

0

68

72

76

80

84

88

1H 08/09 1H 09/10 1H 10/11 1H 11/12 1H 12/13

Passenger Load Factor

(%)

75.6

79.477.5

79.6

Slide 6


72.2

86.0

75.4

78.079.8

77.9

0

68

72

76

80

84

88

1H 08/09 1H 09/10 1H 10/11 1H 11/12 1H 12/13

Passenger Load FactorBreakeven Load Factor

(%)

75.6

79.4

77.579.6

Slide 7


72.2

86.0

75.4

78.079.8

77.9

0

68

72

76

80

84

88

1H 08/09 1H 09/10 1H 10/11 1H 11/12 1H 12/13

Passenger Load FactorBreakeven Load Factor

(%)

75.6

79.4

77.579.6

5.7

-10.4

4.0 -0.5-0.2

Slide 8

11.6 11.4

2011-12¢/pkm

0

9

10

11

12

13

14

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

2009-10

10.4

9.7

THE PARENT AIRLINE COMPANY THE PARENT AIRLINE COMPANY MONTHLY PASSENGER YIELDMONTHLY PASSENGER YIELD

Slide 9

11.2

2012-13

11.6

11.9

10.0

Fuel Price before hedging

Fuel Expenditure (before hedging)($ million) (USD/BBL)

0

600

800

1,000

1,200

1,400

1,600

1,800

2,000

0102030405060708090100110120130140150160170

1,2141,170

1,254 1,2511,243

649

1,094

1,743

1,557

631

2009-10 2010-11 2011-12

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

2008-09

4Q 1Q

2012-13

2Q

1,241

149160

98

61 64

136

130

129

133

132126

THE PARENT AIRLINE COMPANY THE PARENT AIRLINE COMPANY FUELFUEL PRICE AND EXPENDITURE PRICE AND EXPENDITURE -- TRENDTREND

Slide 10

THE PARENT AIRLINE COMPANY THE PARENT AIRLINE COMPANY COST COMPOSITION COST COMPOSITION –– 1H FY12/131H FY12/13

Fuel41.1%

+0.6% ptPassenger Costs5.4%

+0.5% pt

Aircraft Depreciation & Rentals

13.5% -1.9% pts

Staff Costs 13.2%

+0.6+0.6% pt

Handling Charges7.1%

+0.2% pt

Others19.7%

Slide 11

THE PARENT AIRLINE COMPANY THE PARENT AIRLINE COMPANY TOP 5 EXPENDITURE TOP 5 EXPENDITURE –– 1H FY12/131H FY12/13

Slide 12

0 500 1,000 1,500 2,000 2,500 3,000

Passenger Costs

Handling Charges

Staff Costs

Aircraft Depr. &Lease Rentals

Fuel

1H FY11/12

1H FY12/13

432 (+6.5% , +$26M)

330 (+14.6% , +$42M)

818 (-9.6% , -$87M)

801 (+8.4% , +$62M)

2,495 (+4.7% , +$111M)

($ million)

($ million)

THE PARENT AIRLINE COMPANY THE PARENT AIRLINE COMPANY FUELFUEL EXPENDITURE EXPENDITURE –– 1H FY12/131H FY12/13

0

2,100

2,200

2,300

2,400

2,500

2,600

1H/11 1H/12

2,384

Price

-89Lower

weighted average

fuel price

Volume

+128

Higher volumeuplifted

Exchange

+61

Stronger US Dollar

Hedging

+11

Hedging loss vs

hedging gain

2,495(+111)

Slide 13

THE GROUPTHE GROUP1H FY2012/131H FY2012/13

RESULTSRESULTS

($ million)2011/12 2012/13

GROUP REVENUE – 1H FY2012/13

3,578

3,777

0

2,750

3,000

3,250

3,500

3,750

4,000

Q1 Q2

Year-on-Year$294M+4.0%

Half Year Revenue$7,571M

+199+5.6%

3,6993,794

+95+2.6%

Slide 15

2011/12 2012/13

GROUP EXPENDITURE– 1H FY2012/13

3,5673,706

Q1 Q2

($ million)

0

2,750

3,000

3,250

3,500

3,750

4,000

Year-on-Year$286M+4.0%

Half Year Expenditure

$7,429M

+139+3.9% 3,576

3,723+147+4.1%

Slide 16

2011/12 2012/13

GROUP OPERATING PROFIT– 1H FY2012/13

11

72

0

25

50

75

100

125

150

Q1 Q2

Half Year Op Profit$142M

Year-on-Year$8M

+6.0%

($ million)

+61(n.m.)

123

70

-53-43.1%

Slide 17

CONTRIBUTION TO GROUP OPERATING CONTRIBUTION TO GROUP OPERATING PROFIT PROFIT –– 1H FY12/13 ($ million)1H FY12/13 ($ million)

37

169

1H/12

(99)

66

SilkAir

Singapore Airlines

SIA Cargo

SIA Engineering

34

53

(31)

69

1H/11

3+

116+

68-

3-

Change

Slide 18

8.8+

n.m.

n.m.

4.3-

% Change

($ million)2011/12 2012/13

GROUP NET PROFIT– 1H FY2012/13

45

78

0

50

100

150

200

Q1 Q2

+33+73.3%

194

90

-104-53.6%

Half Year Net Profit

$168M

Year-on-Year$71M

-29.7%

Slide 19

($ million)

GROUP NET PROFIT – 1H FY2012/13

0

50

100

150

200

250

300

1H/11 OperatingProfit

Higher operating

profit

+8

AircraftDisposal

Loss on disposal of aircraft vsgain last

year

-67

Non-Operating

Item

Return of capital from

VAL last year

-48

Associatesand JV

+16

Higher share of

profit from associates

and JV

Interestand

Others

+20

Lower net interest and

others

239

1H/12

168-71-29.7%

Slide 20

GROUP RESULTS GROUP RESULTS –– 1H FY12/131H FY12/13

Slide 21

10.06.0Interim Dividend Per Share (¢)

1.231.11EBITDAR Per Share ($)

1H/111H/12

10.9611.04Net Asset Value Per Share ($)

At 31 Mar 12At 30 Sep 12

20.014.3Earnings Per Share (¢)

BUSINESS OUTLOOK BUSINESS OUTLOOK FOR THE FOR THE

22ndnd HALF YEARHALF YEAR

OUTLOOK OUTLOOK

Slide 23

High and volatile fuel price

Weaker global economy

Operating Fleet at 30 September 12

Operating Fleet at 31 March 13

IN: Delivery of A333

FLEET DEVELOPMENT

4

4

-

SCOOT

101

102

+ 1

SIA

22

22

-

SLK

Slide 24


New deliveries from April 2013:

SIA FLEET DEVELOPMENT

102

SIA

Delivery of B773-ER (2013 onwards ) + 8

Delivery of A330 (2013 onwards) + 14

Delivery of A380 (2017 onwards ) + 5



Slide 25


SILKAIR FLEET DEVELOPMENT

22

SLK

Delivery of B737 (From 2014 to 2021) + 54

Delivery of A320 (In 2013) + 2New deliveries from April 2013:

Slide 26


SCOOT FLEET DEVELOPMENT

4

SCOOT

Delivery of B787 (2014 onwards) + 20New deliveries from April 2013:

Slide 27

GROUP CAPITAL EXPENDITURE

FY13/14 FY14/15 FY15/16 FY16/17 FY17/18

Aircraft 1,250 1,850 2,950 3,150 3,950

Other Assets 250 250 200 200 200

Total 1,500 2,100 3,150 3,350 4,150

Slide 28

GROUP FUEL HEDGING POSITION

Slide 29

Percentage hedged for period Oct 12 to Mar 13 43(%)

Avg hedged price for period Oct 12 to Mar 13 123(USD/BBL - Jet Fuel)

MEETING THEMEETING THECHALLENGESCHALLENGES

SilkAir (MI)Regional

SIA (SQ)Regional, Medium and Long haul

Premium Full Service

Group Portfolio



No Frills

Slide 31



Integrated planning and operations Joint fleet and route planning, Yield management Sales and marketing Airport operations

Outcome Cross-selling increased 25% Enabling growth

Slide 32


No Frills

Group Portfolio

The LCCs stimulate new traffic and tap new market segments

Scoot (TZ)Medium and Long haul

Slide 33


No Frills

Group Portfolio

Regional LCC PartnerE.g. Tiger (TR)


Consistent no frills offering Interline relationship Potential codeshare?

Slide 34


No Frills

Group Portfolio



Distinct positioning at each end of market spectrum

Lower risk of cannibalization


Slide 35


No Frills


Group Portfolio


Other LCCs



Scoot (TZ)Medium and

Long haulOther LCCs Other LCCsOther LCCs

Our LCCs take market share from other players in product continuum

Slide 36


No Frills

Group Portfolio

Regional LCC Partner

E.g. Tiger (TR)



Scoot (TZ)Medium and

Long haul

Traffic through other hubs

Other Full Service Carriers

Other LCCsOther LCCs

Slide 37


No Frills

Our LCCs take market share from other players in product continuum

Group Portfolio

Regional LCC Partner

E.g. Tiger (TR)

Network & Connectivity

Network organic growth

– SQ/MI growth

Slide 38

SQ/MI ASK Y-o-Y Change (%)

5.7%

5.3%

2.9%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

FY1011 FY1112 FY1213 (Apr-Aug)

SQ+MI ASK Y-o-Y Change (%)

FY 2010India

10 points77x weekly

8 points73x weekly

China Africa

SIA Group

3 points12x weekly

9 points118x weekly

Indonesia

5 points92x weekly

Australia

Slide 39


FY 2012

9 points118x weekly

Indonesia

India

10 points77x weekly

8 points73x weekly

China Africa

11 points96x weekly

13 points116x weekly

3 points14x weekly

3 points12x weekly

11 points136x weekly

5 points92x weekly

Australia

7 points124x weekly

SIA Group

Slide 40


Airline partnerships

– Fill gaps in network

– Compete against other partnerships

– STAR Alliance starting point

– Additional partnerships beyond STAR

Slide 41


New and deepened partnerships since 2011

Slide 42


Product Leadership and Service Excellence

We will remain at the forefront of airline product innovation and service excellence

Slide 43

Aircraft Cabin and Seats

BMW DesignworksUSA – First Class

James Park Associates – Business Class

Introduced with new deliveries of Boeing 777-300ERs (2H 2013)

Highlights of New Initiatives

Slide 44



Inflight Entertainment System

USD 400m investment and launch customer for Panasonic Avionics’ next-generation system

In-flight connectivity on long haul aircraft (progressively from April 2012)

Slide 45


SilverKris Lounges (SKL)

Ong & Ong developing new design concept for SKL

$20 million investment in next 5 yrs for all lounges

Commencing with Sydney SKL (from mid 2013)


Slide 46


Highlights of New Service Initiative

Customer Experience Management (CEM)

Vision is to develop a 3600 view of our customers

Deliver proactive and personalized services at more touch points

Take SIA’s service leadership to a higher level

Slide 47


Leveraging on new systems & tools IT enabler Use of mobile technology

Streamlining of processes & procedures Align internal processes with the CEM

vision

Soft skills training Launch of a new service theme

– “Creating Extraordinary Moments”

3-Pronged Strategy To Deliver the CEM Vision

Slide 48


Thank You

Documents

Singapore Airlines Group Analyst/Media Briefing · 5 NOVEMBER 2012 THE PARENT AIRLINE 1H FY2012/13 RESULTS. THE PARENT AIRLINE COMPANY RESULTS – 2Q & 1H FY12/13 Slide 3 Operating