sia results presentation · slide 2 sia group –q1 fy19/20 key takeaways ... slide 17 lower group...
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Slide 1Slide 1
SIA Group
Q1 FY2019-20 Results
1 August 2019
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Slide 2Slide 2
SIA Group – Q1 FY19/20 Key Takeaways
Passenger traffic growth drove improvements in overall RASK and revenue
– SIA Pax: Captured strong demand, outstripping growth in capacity to achieve record passenger load factor. RASK improved 2.4%.
– MI: Performance significantly impacted by 737 MAX 8 grounding
– Scoot: Capacity growth matched by passenger traffic improvement. RASK declined 2.1%, on lower yields.
– Cargo: Cargo flown revenue declined due to weaker demand amid trade uncertainties.
Grounding of 737 MAX 8 fleet slows expansion
Net fuel cost rose, led by an increase in volume uplifted on capacity expansion and a stronger US dollar. Benefitted from fuel hedging gains.
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Slide 3Slide 3
SIA Group Financial Results
Q1 FY19/20($’M)
Q1 FY18/19($’M)
Better/(Worse) (%)
Total Revenue 4,102.2 3,844.5 6.7
Total Expenditure
- Net Fuel CostFuel costFuel hedging gain
- Non-fuel expenditure
3,902.2
1,172.71,229.8(57.1)
2,729.5
3,651.4
1,079.41,211.6(132.2)2,572.0
(6.9)
(8.6)(1.5)(56.8)(6.1)
Operating Profit- Operating Profit Margin
200.04.9
193.15.0
3.6(0.1) pt
Group Profit Attributable to Owners of the Parent- Basic Earnings Per Share
111.19.4
139.611.8
(20.4)(20.3)
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Slide 4Slide 4
Pax traffic growth across all airlines;record Q1 PLF for SIA
Q1 FY19/20
Change (%)
SIA (Passenger)
Revenue Passenger-KM (M) 26,628.3 9.0
Available Seat-KM (M) 32,002.7 7.4
Passenger Load Factor (%) 83.2 1.2 pts
SilkAir
Revenue Passenger-KM (M) 2,302.1 2.4
Available Seat-KM (M) 2,949.5 (1.6)
Passenger Load Factor (%) 78.1 3.1 pts
Scoot
Revenue Passenger-KM (M) 7,410.3 6.5
Available Seat-KM (M) 8,607.0 6.5
Passenger Load Factor (%) 86.1 -
SIA (Cargo)
Cargo Load Tonne-KM (M) 1,645.4 (4.4)
Cargo Capacity Tonne-KM (M) 2,805.1 0.1
Cargo Load Factor (%) 58.7 (2.7) pts
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Slide 5Slide 5
Group revenue improvement led by strong pax flown revenue
3,844.5
4,062.1
4,341.5
4,075.14,102.2
3,500
3,600
3,700
3,800
3,900
4,000
4,100
4,200
4,300
4,400
Q1 Q2 Q3 Q4 Q1
Year-on-Year$257.7M(+6.7%)
Q1 FY19/20$4,102.2M
$M
Group Revenue
FY18/19 FY19/20
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Slide 6Slide 6
Strong pax traffic growth drove improvements in RASK and revenue
Pax Flown Revenue3,331.6
(+270.5, +8.8%)
Cargo and Mail488.9
(-44.6, -8.4%)
Engineering Services127.2
(+17.9, +16.4%)
Other Pax Revenue83.7
(-7.9, -8.6%)Others70.8
(+21.8, +44.5%)
Q1 FY19/20Flown Revenue
y-o-y ($’M)RASK
y-o-y (%)Yields
y-o-y (%)Carriage/Load
y-o-y (%)Capacity
y-o-y (%)
SIA (Pax) +258.4 +2.4 +1.0 +9.0 +7.4
SilkAir -1.5 +1.3 -2.9 +2.4 -1.6
Scoot +14.0 -2.1 -1.8 +6.5 +6.5
SIA (Cargo) -44.6 n.a. -4.2 -4.4 +0.1
81.2% 11.9%
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Slide 7Slide 7
Group expenditure increased on expansion
Year-on-Year$250.8M(+6.9%)
Q1 FY19/20$3,902.2M
$M
Group Expenditure
FY18/19 FY19/20
3,651.4
3,829.2
3,953.9
3,821.6
3,902.2
3,300
3,400
3,500
3,600
3,700
3,800
3,900
4,000
Q1 Q2 Q3 Q4 Q1
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Slide 8Slide 8
Q1 FY19/20CASK
y-o-y (%)CASK ex-fuel
y-o-y (%)
SIA (Pax) +1.2 +1.9
SilkAir +6.1 +4.8
Scoot +3.9 +5.9
81.2% 11.9%
Depreciation and Leased Aircraft
Charges526.4
(+33.9, +6.9%)
Staff Cost747.9
(+90.3, +13.7%)
Fuel Cost Post Hedging1,172.7
(+93.3, +8.6%)
Others478.0
(+32.3, +7.2%)
Passenger Costs191.3
(+14.6, +8.3%)
LPO* Charges233.2
(+17.3, +8.0%)
Handling Charges334.1
(+5.2, +1.6%)
AMO Costs218.6
(-36.1, -14.2%)
*Landing, Parking and Overflying
30.0%
13.5%5.6%
19.2%
12.2%
4.9%
8.6%6.0%
Ex-fuel costs rose largely from expansion of operations
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Slide 9Slide 9
Higher group fuel cost led by increase in volume uplifted on capacity expansion and stronger USD; benefited from fuel hedging gains
$M
+93.3 (+8.6%)
1,079.4 -84.4+75.1
+69.7
+32.9 1,172.7
900
950
1,000
1,050
1,100
1,150
1,200
Q1FY18/19
Price Hedging Volume Exchange Q1FY19/20
Lowerweighted
average fuel price
Higher uplift
Lower hedging
gain
StrongerUSD
against SGD
Composition of Increase in Net Fuel Cost
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Slide 10Slide 10
Group operating profit improved against last year
Year-on-Year$6.9M
(+3.6%)
Q1 FY19/20$200.0M
$M
Group Operating Profit
FY18/19 FY19/20
193.1232.9
387.6
253.5
200.0
0
100
200
300
400
500
Q1 Q2 Q3 Q4 Q1
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Slide 11Slide 11
Strong revenue growth outpaced expenditure increase
193.1
+270.5 -44.6+17.9 -93.3
-157.5
+13.9 200.0
0
50
100
150
200
250
300
350
400
450
500
Q1FY18/19
Pax flownrev
Cargoflown rev
Engineeringrev
Net fuelcosts
Ex-fuelcosts
Others Q1FY19/20
Higher paxflown revenue
Higher net fuel costs
Higher ex-fuel costs
Largely:• Staff costs (+90.3)• Depreciation & leased aircraft
charges (+33.9)• Landing, parking & overflying
(+17.3)Higher engineering revenue
Lower cargo flown revenue
+6.9(+3.6%)
$MComposition of Change in Group Operating Profit
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Slide 12Slide 12
Operating results for main companies in the Group
Q1 FY19/20($’M)
Q1 FY18/19($’M)
Better/(Worse)
($’M)
Better/(Worse)
(%)
SIA(Parent Airline Company)
232.0 180.8 51.2 28.3
SilkAir (15.9) 0.2 (16.1) n.m.
Scoot (37.5) 1.1 (38.6) n.m.
SIAEC Group 17.7 10.2 7.5 73.5
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Slide 13Slide 13
Parent Airline Company’s operating profit improved on strong revenue growth
$M
180.8
+258.4 -44.6
-81.0
-79.6
-2.0 232.0
0
50
100
150
200
250
300
350
400
450
500
Q1FY18/19
Pax FlownRevenue
CargoFlown
Revenue
Net fuelcost
Staff costs Others Q1FY19/20
Higher pax
flown revenue
Higher staff cost
Higher net fuel
cost
Lower cargo flown
revenue
+51.2(+28.3%)
Composition of Change in Parent Airline Company’s Operating Profit
Other major items include:• Higher ASC (-33.3)• Higher sales costs (-18.7)• Higher LPO (-16.1)• Higher passenger costs (-14.1)• Lower AMO costs (+42.4)• FX/reval gains vs losses last year (+24.1)• Non-scheduled services revenue (+21.9)
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Slide 14Slide 14
SilkAir significantly impacted by MAX 8 grounding
$M
0.2 -9.8
-1.8
-4.5 -15.9
(50)
(45)
(40)
(35)
(30)
(25)
(20)
(15)
(10)
(5)
0
5
Q1 FY18/19 Revenue Fuel costs Ex-fuel costs Q1 FY19/20
(16.1)(n.m.)
Lower paxflown revenue and other revenue
Composition of Change in SilkAir’s Operating Profit
Higher net fuel cost
Higher ex-fuel costs
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Slide 15Slide 15
Scoot’s capacity growth matched by pax traffic improvement
$M
Composition of Change in Scoot’s Operating Profit
1.1
+14.0 -10.5
-10.5
-11.7
-14.1
-4.5
-1.3
-37.5
(50)
(40)
(30)
(20)
(10)
0
10
20
Q1FY18/19
Pax flownrev
Other rev Fuel costs Ex-fuelvariable
costs
A/cstandingcharges
Staff cost Others Q1FY19/20
Higher pax flown revenue
Higher dep & lease aircraft charges
Higher net fuel cost
Higher ex-fuel variable costs
Lower other revenue
Higher staff costs
-38.6(n.m.)
Mainly:• Higher passenger costs (+3.3)• Higher handling costs (+2.7)• Higher crew allowance (+2.7)• Higher LPO (+2.2)
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Slide 16Slide 16
$M
139.6
56.4
284.1
202.6
111.1
0
50
100
150
200
250
300
Q1 Q2 Q3 Q4 Q1
Year-on-Year$28.5M
(-20.4%)
Q1 FY19/20$111.1M
Group Profit Attributable to Owners of the Parent
FY18/19 FY19/20
Lower Group net profit on share of assoc losses and higher net finance charges
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Slide 17Slide 17
Lower Group net profit on share of assoc losses and higher net finance charges
139.6
+6.9
-31.2
+8.6
-25.5
+7.5
+5.2 111.1
80
90
100
110
120
130
140
150
Q1FY18/19
OperatingProfit
Associates JVs Net financecharges
Taxation Others Q1FY19/20
-28.5(-20.4%)
$M Composition of Change in Group Net Profit
Higher operating profit
Higher share
of profits of JVs
Share of losses of assoc vs profits
last yearHigher net
finance charges
Lower taxation
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Slide 18Slide 18
Group fuel hedging position
Q2 FY19/20 Jet Fuel Brent
Percentage hedged (%) 79 -
Average hedged price (USD/bbl) 75 -
9M FY19/20 Jet Fuel Brent
Percentage hedged (%) 70 5
Average hedged price (USD/bbl) 76 52
FY20/21 to FY24/25 Jet Fuel Brent
Percentage hedged (%) Up to 23% Up to 49%
Average hedged price (USD/bbl) 77 58-62
Note: Fuel hedging position as at 22 July 2019
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Slide 19Slide 19
Group fleet movement
Operating Fleet As at 31 Mar’19 In Out As at 30 Jun’19
777-200 7 -2 5
777-200ER 5 5
777-300 5 5
777-300ER 27 27
A380-800 19 19
A330-300 17 -1 16
A350-900 XWB 32 +4 36
787-10 9 +3 12
747-400F 7 7
Total 128 +7 -3 132
A319 2 2
A320 8 8
737-800 17 17
Total 27 27
787-8 10 10
787-9 8 +2 10
A319 1 1
A320 26 26
A320neo 2 2
Total 47 +2 49
GROUP TOTAL 202 +9 -3 208
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Sil
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Note:
Excluded 737 MAX 8 in SilkAir’s operating fleet due to grounding
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Slide 20Slide 20
SIA GROUPQ1 FY2019-20 Results
1 August 2019
THANK YOU