Singapore Airlines 2011 Annual Report Download - page 62

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SINGAPORE AIRLINES
060
FINANCIAL REVIEW
Performance of the Group
Key Financial Highlights
2010-11 2009-10 R1 % Change
Earnings For The Year ($ million)
Revenue 14,524.8 12,707.3 + 14.3
Expenditure 13,253.5 12,644.1 + 4.8
Operating profit 1,271.3 63.2 n.m.
Profit attributable to owners of the Parent 1,092.0 215.8 n.m.
Per Share Data (cents)
Earnings per share – basic 91.4 18.2 n.m.
Ordinary dividend per share 60.0 12.0 n.m.
Special dividend per share 80.0 - n.m.
Ratios (%)
Return on equity holders’ funds 7.9 1.6 + 6.3 points
Return on total assets 4.9 1.2 + 3.7 points
n.m. not meaningful
Group Earnings
As the aviation industry recovers from the impact of the financial crisis, the Group achieved a net profit
attributable to owners of the Parent of $1,092 million for the 2010-11 financial year, an increase of
$876 million from the $216 million profit last year. The result included an exceptional item of $202 million in
respect of provision for fines imposed on Singapore Airlines Cargo (“SIA Cargo”) R2.
Group revenue grew $1,817 million (+14.3 per cent) to $14,525 million as both carriage and yields recovered
from depressed levels last year. This revenue growth was achieved in a year punctuated by disruptions ranging
from volcanic ash in Europe, snowstorms in Europe and USA, floods in Australia, and earthquakes in New
Zealand and Japan. The Group’s revenue by business segment is shown below:
2010-11 2009-10
$ million $ million
Airline operations 11,227.0 9,635.4
Cargo operations 2,775.9 2,288.2
Airport terminal and food operations - R1 370.4
Engineering services 466.6 370.0
Others 55.3 43.3
Total revenue 14,524.8 12,707.3
R1 SATS Ltd Group (“SATS Group”) was deconsolidated from the Group with effect from 1 September 2009, after completion of the dividend
in specie distribution. For comparison purposes, a set of proforma financials for the previous financial year (which have excluded SATS
Group from 1 April to 31 August 2009) is presented on page 66.
R2 The $202 million provision comprised the plea offer as agreed with the United States Department of Justice Antitrust Division
(USD48 million or SGD62.5 million), the fine imposed by the European Commission (EUR74.8 million or SGD135.7 million), and the fine
imposed by the South Korean Fair Trade Commission (KRW3.1 billion or SGD3.6 million). SIA Cargo has paid the fines as required by law
and filed appeals against the fines imposed by the European Commission and the South Korean Fair Trade Commission.