ANALYST/MEDIA BRIEFINGANALYST/MEDIA BRIEFINGFY2013FY2013--14 RESULTS14 RESULTS

9 MAY 20149 MAY 2014

THE PARENT AIRLINEFY2013/14

RESULTS

THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2013/14

Passenger Load Factor (%)

Revenue Pax-KM (million)

Available Seat-KM (million)

Slide 3

77.0

22,598

29,356

-1.6 pts

-1.8

+0.3

4Q/13%

Change

78.9

95,064

120,503

-0.4 pt

+1.4

+1.9

2013/14%

Change

THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE – FY2013/14

Passenger Breakeven Load Factor (%)

Passenger Unit Cost(¢/ask)

Passenger Yield(¢/pkm)

Slide 4

82.9

9.2

11.1

-1.0 pt

-2.1

-0.9

4Q/13%

Change

82.0

9.1

11.1

+1.3 pts

-1.1

-2.6

2013/14%

Change

THE PARENT AIRLINE COMPANY RESULTS – FY2013/14

Slide 5

(60)Operating (Loss)/Profit 9

3,008Total Expenditure

1,180- Fuel Cost(23)- Fuel Hedging Gain

1,851- Ex-fuel Cost

60

5334

2,948Total Revenue

4Q/13$million

(51)

Better/(Worse)$million

(2.0)Operating (Loss)/Profit Margin (%)

0.3 pt

69256

(24)12,224

9312,480

2013/14$million

1354,84443(71)(202)7,451

Better/(Worse)$million

0.5 pt2.0

THE PARENT AIRLINE COMPANY - PASSENGER YIELD

Monthly Pax Yields (Including Fuel Surcharge)

Slide 6

¢/pkm

9

10

11

12

13

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

11.211.4

11.611.3 11.3

11.6 11.511.2

11.0

11.411.4 11.3

10.410.2

9.99.7 9.8

10.0

10.4 10.510.7

11.1

11.011.3

2009-10 2012-13

10.8 10.8

11.3

10.911.1 11.2 11.1 11.1

11.3

2013-14

10.9

11.1 11.3

THE PARENT AIRLINE COMPANY OPERATING PERFORMANCE

0

64

68

72

76

80

84

09/10 10/11 11/12 12/13 13/14

Passenger Load FactorBreakeven Load Factor(%)

78.5

82.7

74.8

3.7

-4.3

78.478.077.4

-0.6 79.3

80.7-1.4

Slide 7

78.9

82.0-3.1

THE PARENT AIRLINE COMPANY COST COMPOSITION – FY2013/14

Slide 8

Fuel Cost Post Hedging39.0% (-1.6 pts)

Staff12.8% (-0.4 pt)

Aircraft Depreciation & Lease Rentals

14.7% (+0.8 pt)

Handling Charges7.1% (No Change)

Others 20.8% (+0.3 pt)

Aircraft Maintenance and Overhaul Costs

5.6% (+0.9 pt)

861

1,610

4,951

676

871

1,567

1,798

4,773

577

1,698

0 1,000 2,000 3,000 4,000 5,000 6,000

AMO Costs

HandlingCharges

Staff

Aircraft Depr. &Lease Rentals

Fuel AfterHedging

THE PARENT AIRLINE COMPANY TOP 5 EXPENDITURE – FY2013/14

Slide 9

2013-142012-13

(-$178 or -3.6%)

$M

(+100 or +5.9%)

(+99 or +17.2%)

(+10 or +1.2%)

(-43 or -2.7%)

THE PARENT AIRLINE COMPANY FUEL PRICE AND EXPENDITURE - TREND

Slide 10

1Q 2Q 3Q 4Q

2008-09

1,27

7

1,59

5

867 96

0

1,26

8

1,22

7

1,24

4

1,21

2

1,20

6

1,23

6

1,17

4

1,15

6

1,37

7

1,10

0

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

0102030405060708090100110120130140150160

124

149160

98

61

64

104

88

146

122 124

120

133132126

132121

124130130

125

134

123

1Q 2Q 3Q 4Q

2009-10

1Q 2Q 3Q 4Q

2010-11

1Q 2Q 3Q 4Q

2011-12

1Q 2Q 3Q 4Q

2012-13

1Q 2Q 3Q 4Q

2013-14

126127126

Fuel Cost after hedging

Fuel Price after hedging

Fuel Price before hedging

Fuel Price After Hedging

THE PARENT AIRLINE COMPANY FUEL EXPENDITURE – FY13/14

Slide 11

4,951

4600

4800

5000

5200

2012-13

4,773

2013-14

-178 (-3.6%)

Price

-218

Lower Weighted Average

Fuel Price

Volume

+23

Higher Volume Uplifted

Exchange

+60

StrongerUSD

Against SGD

Hedging

-43

Higher Hedging

Gain

$M

THE GROUPFY2013/14

RESULTS

GROUP REVENUE – FY2013/14

Half Year Revenue$7,097M

($ million) Full Year Revenue

$15,244M

Year-on-Year$146M+1.0%

12,707

14,52514,858

15,098

0

12,500

13,000

13,500

14,000

14,500

15,000

15,500

16,000

16,500

09/10 10/11 11/12 12/13

Slide 13

15,244

13/14

GROUP EXPENDITURE – FY2013/14

Half Year Revenue$7,097M

($ million) Full Year Expenditure$14,985M

Year-on-Year$116M+0.8%

12,644

13,254

14,57214,869

12,500

13,000

13,500

14,000

14,500

15,000

15,500

16,000

16,500

0

Slide 14

14,985

09/10 10/11 11/12 12/13 13/14

GROUP OPERATING PROFIT – FY2013/14

Half Year Revenue$7,097M

($ million) Full Year Op Profit$259M

Year-on-Year$30M

+13.1%

63

1,271

286 229

0

500

1,000

1,500

2,000

Slide 15

259

09/10 10/11 11/12 12/13 13/14

GROUP OPERATING PROFIT – FY2013/14

Slide 16

($ million)2012/13 2013/14

72 70

131

-44-60

87

151

81

-70

-20

30

80

130

180

Q1 Q2 Q3 Q4

GROUP OPERATING PROFIT – FY2013/14

Slide 17

($ million)2012/13 2013/14

72 70

131

-44-60

87

151

81

-70

-20

30

80

130

180

Q1 Q2 Q3 Q4

+9+12.5%

-16-36.4%

+17+24.3%

+20+15.3%

12-128116SIA Engineering

69+187256Singapore Airlines

2013/14

62-9735SilkAir

67+(167)(100)SIA Cargo

2012/13 Change

CONTRIBUTION TO GROUP OPERATING PROFIT – FY2013/14 ($ million)

9.4-

36.9+

63.9-

40.1

% Change

Slide 18

+

GROUP NET PROFIT – FY2013/14

Half Year Revenue$7,097M

($ million) Full Year Net Profit

$359M

Year-on-Year-$20M-5.3%

216

1,092

336 379

0

250

500

750

1,000

1,250

1,500

09/10 10/11 11/12 12/13

Slide 19

359

13/14

GROUP NET PROFIT – FY2013/14

Slide 20

379

350

400

450

500

550

2012-13

359

2013-14

-21

Others

Absence ofGain on

Divestment and Others

+30

OperatingProfit

Higher Operating

Profit

-96

Associated

Companies

Share of Losses of

Associated Companies vs

Profit Last Year+85

Taxation

Tax Credit vs Tax

Expense Last Year

-18

Exceptional

Exceptional Items

Items

-20 (-5.3%)

$M

Slide 21

6.010.0Interim Dividend Per Share (¢)

DIVIDENDS – FY2013/14

32.230.6Earnings Per Share (¢)

17.011.0Proposed Final Dividend Per Share (¢)

2012/132013/14

23.046.0Total Dividend Per Share (¢)

-25.0Proposed Special Dividend Per Share (¢)

- 7

- 1

OUT: Decommissioned B777-200

OUT: Decommissioned A330-300

FLEET DEVELOPMENT - SIA

Slide 22

103Operating Fleet at 31 March 14

No. of Aircraft

105Operating Fleet at 31 March 15

+ 5IN: Delivery of A330-300+ 3Delivery of B777-300ER+ 2Return of B777-200 from lease

- 4OUT: Decommissioned A320-200

FLEET DEVELOPMENT - SLK

Slide 23

24Operating Fleet at 31 March 14

No. of Aircraft

27Operating Fleet at 31 March 15

+ 7IN: Delivery of B737-800

FLEET DEVELOPMENT - SCOOT

Slide 24

6Operating Fleet at 31 March 14

No. of Aircraft

+ 2IN: Delivery of B787

- 1OUT: Decommissioned B777-200

7Operating Fleet at 31 March 15

GROUP CAPITAL EXPENDITURE

FY14/15 FY15/16 FY16/17 FY17/18 FY18/19

Aircraft 2,100 3,100 2,900 4,150 4,250

Other Assets 200 200 150 150 150

Total 2,300 3,300 3,050 4,300 4,400

Slide 25

GROUP FUEL HEDGING POSITION

Slide 26

For the period Apr 14 to Mar 15

Jet Fuel Brent

Percentage hedged (%)

45.1 6.8

Average hedged price (USD/BBL - Jet Fuel)

117 97

BUSINESS OUTLOOK BUSINESS OUTLOOK FOR FOR

FY2014/15FY2014/15

OUTLOOK OUTLOOK

Intense competition

Economic and political risks

Elevated and range bound fuel prices

Slide 28

MEETING THEMEETING THECHALLENGESCHALLENGES

CHALLENGES CHALLENGES

FSC Competition

Slide 30

CHALLENGES CHALLENGES

FSC Competition

Service

Product

Network

Slide 31

Expanding our network through partnerships

As at March 2014

Over 5,000 weekly flight segments on code share partners

Over six times the number of weekly flights operated by SIA ex-SIN

NETWORK CONNECTIVITYNETWORK CONNECTIVITY

Slide 32

Slide 33

Customer Experience Management

SERVICE EXCELLENCE SERVICE EXCELLENCE

3600 view of our customers to deliver Proactive and Personalized services

CEM system will be available to all frontline service touchpoints progressively from Q3 2014

Plan & Book

Pre-Flight

Onboard

Engage

Enhancement to benefits

– Enhance reserve value feature

– Improve redemption seat availability for Solitaires

More “Pay with Miles’features

– New payment option: Combine miles and cash

– More choices:Miles can be used as payment for commercial tickets including fuel surcharge & taxes

SERVICE EXCELLENCESERVICE EXCELLENCE

Loyalty Programme Enhancements

Slide 34

“Home Away From Home” New-concept SilverKris Lounge debuted in SYD On track to upgrade SilverKris Lounges in LON, HKG and

MNL by end of 2014

PRODUCT LEADERSHIP PRODUCT LEADERSHIP

Slide 35

USD325 million retrofit of 19 B777-300ERs with latest cabin products

To provide consistency across entire B777-300ER fleet

Installation work to begin in early 2015, with all 19 aircraft completed by end of 2016

PRODUCT LEADERSHIPPRODUCT LEADERSHIP

Slide 36

PRODUCT LEADERSHIPPRODUCT LEADERSHIP

Premium Economy Class to be launched

in 2nd half 2015

Slide 37

CHALLENGES CHALLENGES

LCC Competition

FSC Competition

Service

Product

Network

Slide 38

CHALLENGES CHALLENGES

LCC Competition

Group Portfolio

FSC Competition

Service

Product

Network

Slide 39

Passed 2 million passenger milestone in Jan 2014

Commence renewal of fleet from end of 2014 with first delivery of B787

13 destinations in eight countries or territories

SCOOTSCOOT

Slide 40

SIA’s interest in Tiger Airways

Subscribed to Rights Shares in April 2013 to maintain interest at 32.7%

Increase interest to 40.0% in December 2013 after purchase of Temasek Holdings’ shares

Subscribed to perpetual convertible capital securities (PCCS) which are convertible into an additional 12.1% interest; including the PCCS, SIA’s interest in Tiger Airways stood at 52.1% as at March 2014

Tiger AirwaysTiger Airways

Slide 41

SCOOTSCOOT--TIGER PARTNERSHIPTIGER PARTNERSHIP

Slide 42

Scoot and Tiger Airways signed alliance agreement in December 2013

Submit application to the Competition Commission of Singapore (CCS) for anti-trust immunity

CCS process expected to take months and include public consultation

SCOOTSCOOT--TIGER PARTNERSHIPTIGER PARTNERSHIP

Slide 43

Denpasar

Ningbo

Shen ZhenLijiang

YogyakartaBandung

Langkawi

Male

Yangon Clark

Kalibo

Chiang Mai

PORTFOLIO OF BRANDSPORTFOLIO OF BRANDS

Full Service

LCC

Pos

itio

ning

MarketsSlide 44

Regional Long-Haul

Full Service

LCC

Pos

itio

ning

Markets

PORTFOLIO OF BRANDSPORTFOLIO OF BRANDS

Slide 45

Regional Long-Haul

Full Service

LCC

Extend

Market

ReachPos

itio

ning

MarketsRegional Long-Haul

PORTFOLIO OF BRANDSPORTFOLIO OF BRANDS

Slide 46

CHALLENGES CHALLENGES

Geography

LCC Competition

Group Portfolio

FSC Competition

Service

Product

Network

Slide 47

CHALLENGES CHALLENGES

Geography Additional Hubs

LCC Competition

Group Portfolio

FSC Competition

Service

Product

Network

Slide 48

Hub in New Dehli, India

Tap into the large Indian domestic market

Fleet of 20 A320s

No-Objection Certificate granted on 2 April 2014

Next: AOP from DGCA

TATATATA--SIA JOINT VENTURESIA JOINT VENTURE

Slide 49

Hub in Bangkok, Thailand

Second home market for Scoot

Leverage on Nok Air’s leading domestic network

Scoot to provide experience in widebody aircraft operations and international distribution

NOKSCOOT JOINT VENTURENOKSCOOT JOINT VENTURE

Slide 50

CHALLENGES CHALLENGES

Geography Additional Hubs

LCC Competition

Group Portfolio

FSC Competition

Service

Product

Network

Slide 51

Set-up of New Revenue Unit w.e.f 29 July 2013

Various on-going initiatives Commission-based 3rd party products

Inflight & Merchandising

Advertising

Slide 52

NEW REVENUE NEW REVENUE

Airbus Asia Training Centre

MoU signed to establish flight training JV in Singapore

Operations to commence in Dec 2014

NEW VENTURENEW VENTURE

Slide 53

Thank You