Singapore Airlines 2002 Annual Report Download - page 51

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Report by the Board of Directors
The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the Company for
the financial year ended 31 March 2002.
1 Accounts (in $ million)
The Group The Company
2001 - 02 2000 - 01 2001 - 02 2000 - 01
Profit after taxation 691.8 1,662.3 567.2 1,422.2
Minority interests (60.1) (37.5) – –
Profit attributable to shareholders 631.7 1,624.8 567.2 1,422.2
In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year have been
affected by the following events and transactions.
(a) The Group and the Company’s performance for the year were adversely affected by a slowdown in the global economy and the
worsening slump in electronics demand made worse by the terrorist attacks in the US on 11 September 2001.
The fall in Group operating profit came mainly from poorer performance by the Company and Singapore Airlines Cargo Private
Limited (Singapore Airlines Cargo). This was partially offset by stronger performance from SIA Engineering Company (SIAEC) Group
and Singapore Airport Terminal Services (SATS) Group.
(b) Following the corporatization of the Company’s cargo operations on 1 July 2001, the Company’s result for the year excludes third
party cargo revenues from that date, but includes revenue from the sale of aircraft bellyhold space to Singapore Airlines Cargo.
Additional disclosures of the 31 March 2001 results, restated to exclude Singapore Airlines Cargo’s operations, is included in note
35 to the financial statements for comparative purposes.
(c) Exceptional items for the Group and the Company are disclosed in note 8 to the financial statements.
2 Transfers to/from Reserves and Provisions
There were no other material transfers to or from reserves or provisions during the financial year except as disclosed in the financial
statements.
3 Dividends
The final dividend paid during the financial year in respect of the previous financial year and included in the previous directors’ report
was $184.2 million.
An interim dividend of 3.0 cents per share, less tax at 24.5%, amounting to $27.6 million, was paid on 22 November 2001. The
directors propose that a final tax exempt dividend of 4.0 cents per share ($48.7 million) and a dividend of 8.0 cents per share less
tax at 22.0% ($76.0 million) amounting to a total of $124.7 million, be paid for the year ended 31 March 2002.
4 Principal Activities
The principal activities of the Group consist of air transportation, engineering services, airport terminal services, training of pilots, air
charters and tour wholesaling and related activities.
The principal activities of the Company up to 30 June 2001 consisted of passenger and cargo air transportation. On 1 July 2001,
the cargo division operations of the Company were corporatized into a separate wholly owned subsidiary, Singapore Airlines Cargo
Private Limited.
51 SIA Annual Report 01/02