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The Path of Progress

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The Path of Progress The Path of Progress ANNUAL REPORT FY2014/15 Mission Statement "Singapore Airlines is a global company dedicated to providing air transportation services of the highest quality and to maximising returns for the benefit of its shareholders and employees." Contents The Airline was named the “Most Attractive 20 Employer in Singapore” by Randstad Singapore The Year in Review for the third consecutive year. The SIA Group recorded a $151 million increase in full-year operating profit amid lower fuel costs. 3 23 Portfolio at a Glance Fleet Management An overview of SIA is committed to the highlights of the maintaining a young and SIA Group airlines modern fleet Overview Strategy Performance Governance Financial 2 3-Year Financial 8 Flying the Nation’s Flag 20 The Year in Review 62 Statement on 82 Financial Report Highlights with Pride 22 Network Risk Management 83 Report by the Board 3 Portfolio at a Glance 10 Reaching New Heights 23 Fleet Management 63 Corporate of Directors 4 Statistical Highlights of Excellence 24 Products and Services Governance Report 215 Notice Of Annual 6 Significant Events 12 Continually Looking 30 People Development 73 Membership and General Meeting Beyond the Horizon Attendance of 32 Environment IBC Corporate Data Chairman’s Letter Singapore Airlines 14 Community Engagement to Shareholders 33 Limited 35 Subsidiaries 16 Board of Directors 74 Further Information on 44 Financial Review Board of Directors 60 List of Awards An overview of the Airline’s An introduction to the An account of the Airline’s The Airline’s approach Detailed financial major achievements for the direction the Airline is taking progress with more details to corporate governance information charting the year in review. and a strategic perspective on what drives our business and the management of Airline’s performance for the from our leadership. and operations. principal risk. year along with the Directors’ Report and corporate information. Singapore 50 years ago... Singapore Airlines is the world's The Singapore River was the main most awarded airline, and we are artery of trade and economic activity when the nation gained both proud and humbled that independence in 1965. From the customers and industry alike have days of jetties, godowns and recognised our commitment to bumboats, the River remains a service excellence. Learn more symbol of progress as Singapore transformed into a modern about the awards we have won Photo courtesy of Yip Cheong Fun courtesy Photo metropolis over the decades. through the years. Singapore Airlines | Annual Report FY2014/15 | 1 3-Year Financial Highlights SIA Total Group Revenue Group Operating Profit Goup Net Profit Passengers Carried (‘000) ($M) ($M) ($M) 15,244 15,566 410 379 15,098 359 368 259 14/15 229 18,737 13/14 18,628 12/13 18,210 2012/13 2013/14 2014/15 2012/13 2013/14 2014/15 2012/13 2013/14 2014/15 SIA Total Dividend Earnings per Share, Operating Profit ($M) per Share (¢) after Tax – basic (¢) 46.0* 32.2 30.6 31.4 14/15 340.2 13/14 255.6 23.0 22.0# 12/13 187.2 2012/13 2013/14 2014/15 2012/13 2013/14 2014/15 * Includes 25.0 cents per share special dividend. # Includes a final dividend of 17 cents per share proposed by the Board of Directors. 2 OVERVIEW | 3-Year Financial Highlights | Portfolio at a Glance FULL SERVICE SINGAPORE AIRLINES 105 aircraft in fleet L O SILKAIR 741 N flights departing from Singapore 3,553,000 L G weekly passengers in A - FY2014/15 N Extend H O I Market $ A 41 M G Reach U Operating Profit E R 3rd L in Top 10 Airlines by Passenger Carriage in the Changi Airline Awards 2014 TIGERAIR Scoot 37 4.3 M destinations in passengers 12 countries in FY2014/15 LOW COST 2 times 2nd growth in connecting year of operations passengers between Tigerair and Scoot in 13 Jan 2015 following destinations collaboration in 7 countries Singapore Airlines | Annual Report FY2014/15 | 3 Statistical Highlights Financial Statistics R1 2014/15 2013/14 % Change The Group Financial Results ($ million) Total revenue 15,565.5 15,243.9 + 2.1 Total expenditure 15,156.1 14,984.6 + 1.1 Operating profit 409.4 259.3 + 57.9 Profit before taxation 442.9 367.9 + 20.4 Profit attributable to owners of the Parent 367.9 359.5 + 2.3 Financial Position ($ million) Share capital 1,856.1 1,856.1 – Treasury shares (326.3) (262.2) - 24.4 Capital reserve 215.9 123.7 + 74.5 Foreign currency translation reserve (135.7) (101.5) - 33.7 Share-based compensation reserve 113.2 134.5 - 15.8 Fair value reserve (706.2) (40.4) n.m. General reserve 11,446.6 11,527.0 - 0.7 Equity attributable to owners of the Parent 12,463.6 13,237.2 - 5.8 Return on equity holders’ funds (%) R2 2.9 2.7 + 0.2 point Total assets 23,921.2 22,642.5 + 5.6 Total debt 1,739.5 965.0 + 80.3 Total debt : equity ratio (times) R3 0.14 0.07 + 0.07 times Value added 4,396.8 4,370.1 + 0.6 Per Share Data Earnings – basic (cents) R4 31.4 30.6 + 2.6 Earnings – diluted (cents) R5 31.2 30.3 + 3.0 Net asset value ($) R6 10.66 11.26 - 5.3 Dividends Interim dividend (cents per share) 5.0 10.0 - 5.0 cents Final dividend (cents per share) 17.0 11.0 + 6.0 cents Special dividend (cents per share) – 25.0 - 25.0 cents Dividend cover (times) R7 1.4 0.7 + 0.7 times The Company Financial Results ($ million) Total revenue 12,418.4 12,479.7 - 0.5 Total expenditure 12,078.2 12,224.1 - 1.2 Operating profit 340.2 255.6 + 33.1 Profit before taxation 563.1 536.4 + 5.0 Profit after taxation 540.3 538.5 + 0.3 Value added 3,411.3 3,448.7 - 1.1 R1 Singapore Airlines’ financial year is from 1 April to 31 March. Throughout this report, all figures are in Singapore Dollars, unless stated otherwise. R2 Return on equity holders’ funds is profit attributable to owners of the Parent expressed as a percentage of the average equity holders’ funds. R3 Total debt : equity ratio is total debt divided by equity attributable to owners of the Parent as at 31 March. R4 Earnings per share (basic) is computed by dividing profit attributable to owners of the Parent by the weighted average number of ordinary shares in issue excluding treasury shares. R5 Earnings per share (diluted) is computed by dividing profit attributable to owners of the Parent by the weighted average number of ordinary shares in issue excluding treasury shares, adjusted for the dilutive effect on the exercise of all outstanding share options. R6 Net asset value per share is computed by dividing equity attributable to owners of the Parent by the number of ordinary shares in issue excluding treasury shares at 31 March. R7 Dividend cover is profit attributable to owners of the Parent divided by total dividends. 4 OVERVIEW | Statistical Highlights | Operating Statistics 2014/15 2013/14 % Change Singapore Airlines Passengers carried (thousand) 18,737 18,628 + 0.6 Revenue passenger-km (million) 94,209.2 95,064.3 - 0.9 Available seat-km (million) 120,000.8 120,502.8 - 0.4 Passenger load factor (%) 78.5 78.9 - 0.4 point Passenger yield (cents/pkm) 11.2 11.1 + 0.9 Passenger unit cost (cents/ask) 8.9 9.1 - 2.2 Passenger breakeven load factor (%) 79.5 82.0 - 2.5 points SilkAir Passengers carried (thousand) 3,553 3,411 + 4.2 Revenue passenger-km (million) 5,864.9 5,516.1 + 6.3 Available seat-km (million) 8,355.2 7,926.9 + 5.4 Passenger load factor (%) 70.2 69.6 + 0.6 point Passenger yield (cents/pkm) 13.9 13.7 + 1.5 Passenger unit cost (cents/ask) 9.7 9.8 - 1.0 Passenger breakeven load factor (%) 69.8 71.5 - 1.7 points SIA Cargo Cargo and mail carried (million kg) 1,124.0 1,117.8 + 0.6 Cargo load (million tonne-km) 6,347.2 6,419.3 - 1.1 Gross capacity (million tonne-km) 10,024.9 10,273.6 - 2.4 Cargo load factor (%) 63.3 62.5 + 0.8 point Cargo yield (cents/ltk) 32.8 32.7 + 0.3 Cargo unit cost (cents/ctk) 21.4 21.9 - 2.3 Cargo breakeven load factor (%) 65.2 67.0 - 1.8 points Singapore Airlines, SilkAir and SIA Cargo Overall load (million tonne-km) 15,557.4 15,778.1 - 1.4 Overall capacity (million tonne-km) 22,607.8 22,889.7 - 1.2 Overall load factor (%) 68.8 68.9 - 0.1 point Overall yield (cents/ltk) 86.1 84.9 + 1.4 Overall unit cost (cents/ctk) 60.4 60.8 - 0.7 Overall breakeven load factor (%) 70.2 71.6 - 1.4 points Employee Productivity (Average) – The Company Average number of employees 14,040 14,240 - 1.4 Seat capacity per employee (seat-km) 8,547,066 8,462,275 + 1.0 Passenger load per employee (tonne-km) R1 625,516 625,995 - 0.1 Revenue per employee ($) 884,501 876,383 + 0.9 Value added per employee ($) 242,970 242,184 + 0.3 Employee Productivity (Average) – The Group Average number of employees 23,963 23,716 + 1.0 Revenue per employee ($) 649,564 642,769 + 1.1 Value added per employee ($) 183,483 184,268 - 0.4 R1 Passenger load includes excess baggage carried.
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