Singapore Airlines 2006 Annual Report Download - page 47

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45
Singapore Airlines Annual Report 05/06
Performance of the Group (continued)
Statements of Value Added and its Distribution ($ million)
2005-06 2004-05 2003-04 2002-03 2001-02
Total revenue 13,341.1 12,012.9 9,761.9 10,515.0 9,382.8
Less: Purchase of goods and services (8,352.2) (7,030.7) (5,931.8) (6,462.4) (5,709.6)
4,988.9 4,982.2 3,830.1 4,052.6 3,673.2
Add: Interest income 96.7 52.7 32.5 33.7 52.0
Surplus on disposal of aircraft, spares
and spare engines 115.7 215.2 102.7 144.9 66.0
Surplus on disposal of other fixed assets 11.9 8.7 5.5 1.2 2.9
Dividends from long-term investments, gross 24.6 8.0 3.6 5.2 5.7
Impairment of long-term investments (1.0) (0.1) (1.8) (9.4) (1.1)
Amortisation of goodwill on consolidation – (0.1) (0.1) – –
Amortisation of deferred gain 1.4 1.3 1.6 – –
Share of profits of joint venture companies 40.6 12.5 6.4 14.5 20.5
Share of profits/(losses) of associated companies 255.2 203.7 (39.0) 123.8 (71.3)
Staff compensation and restructuring of operations – (37.8) (41.4) – –
Surplus on liquidation of Abacus
Distribution Systems Pte Ltd – – 9.2 – –
Surplus on disposal of Aviation Software
Distribution Consultancy India Limited – – 1.1 – –
Provision for diminution in value of
Air New Zealand Limited – – – – (266.9)
Surplus on disposal of Equant N.V. – – – – 30.2
Surplus on disposal of long-term investments – – – – 4.4
Surplus on sale of investment in
Air New Zealand Limited – 45.7 – – –
Surplus on sale of investment in
Raffles Holdings Ltd – 32.6 – – –
Surplus on sale of investment in Taikoo (Xiamen)
Aircraft Engineering Company Limited – 9.0 – – –
Liquidation of Asian Frequent Flyer Pte Ltd – – – 0.5 –
Recognition of deferred gain on divestment
of 51% equity interests in
Eagle Services Asia Pte Ltd – – – – 202.6
Total value added available for distribution 5,534.0 5,533.6 3,910.4 4,367.0 3,718.2
Applied as follows:
To employees
– Salaries and other staff costs 2,481.1 2,456.5 1,981.0 2,245.2 1,779.2
To government
– Corporation taxes 352.6 387.3 130.3 135.3 233.8
To suppliers of capital
– Interim and proposed dividends 550.5 487.4 304.5 166.6 152.3
– Finance charges 96.3 77.5 65.1 54.7 44.0
– Minority interests 68.8 51.3 46.0 54.5 60.1
Retained for future capital requirements
– Depreciation 1,294.5 1,208.6 1,180.2 1,090.3 969.4
– Retained profit R1 690.2 865.0 203.3 620.4 479.4
Total value added 5,534.0 5,533.6 3,910.4 4,367.0 3,718.2
Value added per $ revenue ($) 0.41 0.46 0.40 0.42 0.40
Value added per $ employment cost ($) 2.23 2.25 1.97 1.95 2.09
Value added per $ investment in fixed assets ($) 0.24 0.24 0.16 0.19 0.18
R1 Retained profit excludes tax write-back as a result of the reduction in statutory tax rate of $204.7 million and $277.8 million for 2003-04 and 2002-03
respectively. If tax write-backs were included, retained profit for 2003-04 and 2002-03 would be $408.0 million and $898.2 million respectively.
Value added is a measure of wealth created. The statements above show the Group’s value added from 2001-02 to 2005-06 and its distribution by way of
payments to employees, government, and to those who have provided capital. It also indicates the portion retained in the business for future capital requirements.
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