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ANNUAL REPORT FY2014/15
The Path of Progress

Table of contents

  • Page 1
    The Path of Progress annual report FY2014/15

  • Page 2
    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."

  • Page 3
    ... The Year in Review Network Fleet Management Products and Services People Development Environment Community Engagement Subsidiaries Financial Review List of Awards Governance 62 Statement on Risk Management 63 Corporate Governance Report 73 Membership and Attendance of Singapore Airlines Limited 74...

  • Page 4
    ...566 Group Operating Profit ($M) 410 Goup Net Profit ($M) 379 359 Passengers Carried ('000) 368 SIA 259 229 14/15 13/14 12/13 18,737 18,628 18,210 2012/13 2013/14 2014/15 2012/13 2013/14 2014/15 2012/13 2013/14 2014/15 Total Dividend per Share (¢) 46.0* Earnings per Share, after Tax...

  • Page 5
    ... departing from Singapore weekly aircraft in fleet LO N G - H AU L 41 m rd 3 in top 10 airlines $ operating profit by passenger Carriage in the Changi airline awards 2014 REGI Extend Market Reach TIGERAIR SCOOT passengers in FY2014/15 37 destinations in 12 countries 4.3 m 2 times growth...

  • Page 6
    ... 2013/14 % Change The Group Financial results ($ million) Total revenue Total expenditure Operating profit Profit before taxation Profit attributable to owners of the Parent Financial position ($ million) Share capital Treasury shares Capital reserve Foreign currency translation reserve Share-based...

  • Page 7
    ...from SIA Cargo) Number of passengers carried x distance flown (in km) Number of available seats x distance flown (in km) Revenue passenger-km expressed as a percentage of available seat-km Passenger revenue from scheduled services divided by revenue passenger-km Operating expenditure (less cargo and...

  • Page 8
    ... agreement to cover EVA Air-operated flights beyond Taipei's Taoyuan International Airport to Los Angeles, Seattle, San Francisco, New York's John F. Kennedy International Airport, Toronto and Vancouver. APRIl Singapore Airlines announces daily A380 services to mumbai and New Delhi. SIA unveiled as...

  • Page 9
    ...2nd 2015 FEBuARY Singapore Airlines' newest class of travel, Premium Economy Class, opens for sale. SIA and Tata Consultancy Services jointly launch TCS CrewCollab Solution, a mobile application to help cabin crew deliver more personalised customer service and to automate and streamline in-flight...

  • Page 10
    ... one of the world's youngest nations, arises the world's most admired airline. JOuRNEY BEGINS 19 37 SIa History Singapore aviation History 8 Malayan airways limited (Mal) takes off on a maiden flight to Kuala lumpur from Kallang airport the Federation of Malaysia is born and Mal is renamed as...

  • Page 11
    ... JuN st transcontinental flight takes off for London MSa splits to become two new entities - Singapore airlines and Malaysian airline System 1966 SEP 1968 1972 MAR 1975 SINGAPORE: Government decides to build Singapore Changi Airport 19 80 9 Singapore Airlines | Annual Report FY2014/15 |

  • Page 12
    ..., becomes Singapore's second airline 1981 SINGAPORE: NOv 1984 SINGAPORE: SEP 1986 SINGAPORE: 1989 FEB Changi Airport opens for operations The Civil Aviation Authority of Singapore (CAAS) is set up Construction of passenger Terminal 2 begins, including work on associated roadwork, two...

  • Page 13
    Singapore airlines' inaugural flight to new York unveiling of the first Singapore Girl wax figure at Madame tussauds london 1990 SINGAPORE: NOv 1992 1992 MAR 1993 MAR SINGAPORE: Terminal 2 opens for operations Singapore Aviation Academy opens 19 99 Singapore Airlines | Annual Report ...

  • Page 14
    ... commercial flight from Singapore to los Angeles with the inauguration of its first A340-500 Singapore Airlines takes delivery and is the first airline to operate the Airbus A380 Superjumbo, the largest passenger plane in the world 1 2008 JAN st Airline to operate out of Changi Airport Terminal...

  • Page 15
    ... of new subsidiary airline, Scoot SIA unveiled as Title Sponsor of the 2014 FORMulA 1® SINGAPORE AIRlINES SINGAPORE GRAND PRIx Tiger Airways becomes a subsidiary of the SIA Group 60 2015 MAR destinations on 6 continents from its primary hub in Singapore 2009 SINGAPORE: Jul 2010 OCT 2011 MAY...

  • Page 16
    ...challenges in as short a time as the SIA Group has. During the last financial year, the Parent Airline continued to invest heavily in its products and services to retain its leadership position. New aircraft continued to enter the fleet, work began to retrofit Boeing 777-300ERs with the newest cabin...

  • Page 17
    ... and international travel. Scoot's new joint venture airline in Thailand, NokScoot, also secured its air operator's certificate during the financial year. market conditions remain challenging, but a strong balance sheet continues to benefit the SIA Group as it gives the Board and management the...

  • Page 18
    ... Director of SIA Engineering Company Limited, Virgin Australia Holdings Limited, mount Alvernia Hospital, member of the National University of Singapore Board of Trustees and a member of the Board of Governors of the International Air Transport Association, of which he is a member of the Strategy...

  • Page 19
    ... Service medal by the Singapore Government and an Honorary Doctor of Laws by the University of Warwick, England. Dr Fung is Group Chairman of Li & Fung Limited, a multinational group of companies headquartered in Hong Kong. Dr Fung has held key positions in major trade and business associations...

  • Page 20
    ... is Chairman and Lead Counselor of LinHart Group, a leadership counselling firm founded by mr Hsieh in 2008. mr Hsieh has extensive experience in international business, leadership development and corporate transformation. He was with management consulting firm mcKinsey & Company for 28 years and...

  • Page 21
    ...financial services work. He is also Chairman of the maritime and Port Authority of Singapore and Chairman of the Board of Directors of the Singapore International Arbitration Centre. mr Wong is a member of the Board of Trustees for the Singapore Business Federation and sits on the Board of Directors...

  • Page 22
    ...per share. The final dividend (tax exempt, one-tier) would be paid on 19 August 2015 to shareholders as at 5 August 2015. a 58.3% increase from last year 410m NET PROFIT ATTRIBuTABlE TO EquITY SHAREHOlDERS +2.5% to $368 million Operating Performance During the year in review, passenger carriage...

  • Page 23
    ... Portfolio Tigerair became a subsidiary, expanding the SIA Group portfolio Services uSD80 million investment in the new Premium Economy travel class Destinations The SIA Group covers a total of 180 destinations, including codeshare arrangements Singapore Airlines | Annual Report FY2014/15 | 21

  • Page 24
    ... Auckland route being operated jointly by both airlines, with Singapore Airlines serving the city with an A380 starting October 2014, along with its daily service to Christchurch. Capacity to Adelaide, Australia, has been trimmed to seven times weekly. In Japan and Europe, services to Haneda airport...

  • Page 25
    NORTH AMERICA To Frankfurt To moscow San Francisco New York JFK Fleet Management Los Angeles Houston PACIFIC OCEAN ATlANTIC OCEAN SOuTH AMERICA To Barcelona FY2014/15 saw the delivery of an additional five Airbus A330-300 aircraft and three Boeing 777-300ER aircraft. Two 777-200s were leased...

  • Page 26
    ... year, providing members with a total of 32 airline partners and over 170 global non-airline partners in financial services, travel and increasingly in retail and everyday spend. Since June 2014, members were given more options to earn miles when shopping with KrisShop, Singapore Airlines' inflight...

  • Page 27
    ... Lounge in Sydney in December 2013, the lounge in Hong Kong welcomed its first guests on 31 October 2014, followed by an official opening on 26 January 2015. The SilverKris Lounge at Heathrow's Terminal 2: The Queen's Terminal, London, opened on 8 April 2015. Developed from the concept of 'Home Away...

  • Page 28
    .... Premium Economy Class will be introduced on flights to Sydney, and then progressively to other points including Beijing, Hong Kong, Frankfurt, London, mumbai, New Delhi, New York, Shanghai, Tokyo and Zurich in the later part of 2015 and early 2016. The total investment for the new cabin class...

  • Page 29
    01. Boeing 777-300ER fleet will be upgraded with the latest generation of cabin products 02. A380 Suites progressively being refreshed and expected to be completed by January 2016 02 03 Suites refresh In May 2014, the Airline made an announcement on plans for a new travel class, Premium Economy, ...

  • Page 30
    ..., the Second Growth Red Bordeaux and "Grand Cru" Red Burgundy, the Airline clinched the Gold medal for Best First Class Cellar in Business Traveller's Cellars in the Sky Awards 2014. Three wines from our First Class wine list were also recognised for their top quality at the Awards. First Class...

  • Page 31
    ... for our Business Class passengers. 03 wElCOME NEw wINE CONSulTANT Oz Clarke who replaced Steven Spurrier after 25 years of service TOP quAlITY 3Wines from our First Class wine list were recognised for their top quality With expert advice from our Wine Panel, Singapore Airlines' Wine Programme...

  • Page 32
    ... Airline enhanced its existing training for ground staff by updating and offering more targeted courses in the areas of customer servicing, sales and marketing, reservations and ticketing, and airport operations. Ground staff were also trained in the usage of the new Customer Experience management...

  • Page 33
    ... staff, to foster greater employee interaction and camaraderie. The SIA Group Road Run 2015 was held on 7 march at a new scenic route, the Punggol Waterway Park. The 5km run encouraged staff across all ages to participate in the morning work-out. more information on the staff strength of the Airline...

  • Page 34
    ... to working in partnership with government agencies and stakeholders to do so. SIA supports the International Air Transport Association (IATA)'s Four-Pillar Strategy to promote and drive efforts towards carbon neutral growth from 2020 onwards - specifically in the areas of technology, operations...

  • Page 35
    .... During the year in review, SIA continued to actively take part in the annual "Give A Hand!" campaign, which raises funds for the adopted beneficiaries of the Community Chest. The funds are then channelled to help children with special needs. 2.5m 03 Singapore Airlines | Annual Report FY2014/15...

  • Page 36
    ...available in the Singapore Airlines Sustainability Report FY2014/15. The Airline was also acknowledged as a Diamond Partner in the SG Care & Share 2015 event, which marked the closing of the fund-raising activities of the Care & Share Movement. 34 PERFORMANCE | Community Engagement, Subsidiaries...

  • Page 37
    ... at Changi Airport, maintaining a strong revenue stream from its line maintenance business. SIAEC MANAGES A FlEET OF 181 aircraft SERvES MORE THAN 80 airlines worldwide SIA Engineering Company SIAEC posted a net profit of $185 million for the financial year ended 31 march 2015. Revenue was $1,119...

  • Page 38
    ...' engineering needs. The joint venture's service offerings will cover the Boeing 737, 747, 777 and 787 fleets. SIAEC's reputation as a renowned mRO Centre in the region received a further boost when the Company's Training Academy was appointed as an Airbus maintenance Training Centre in march 2015...

  • Page 39
    ... as reported by the International Air Transport Association, the air cargo industry continued to experience challenges, with uneven demand growth and continued downward pressure on yields. As at 31 march 2015, SIA Cargo's fleet consisted of eight Boeing 747-400 freighter aircraft. Freighter aircraft...

  • Page 40
    ... Cargo and the postal companies. Staying ahead of technology developments in the industry, SIA Cargo extended electronic airwaybill (e-AWB) implementation to 12 locations in its network, bringing the total number of e-AWB enabled stations to 21. As at march 2015, SIA Cargo's global penetration rate...

  • Page 41
    ... also started offering daily flights to Denpasar from 12 December 2014, joining Singapore Airlines' four daily flights to Bali's capital, to offer customers a total of five round-trip services a day. As part of an ongoing review of its network and capacity during the financial year, the Airline...

  • Page 42
    ... Now Travel Asia Awards 2014. SilkAir's efforts to provide high standards of product and service quality continue to be recognised in the region. It was ranked 3rd in the Top 10 Airlines by Passenger Carriage in the Changi Airline Awards 2014, presented by the Changi Airport Group. 40 PERFORMANCE...

  • Page 43
    ... sales, pricing and schedules. In an early manifestation of such co-operation, the two airlines have been operating joint venture services on two parallel routes - Singapore to Hong Kong and Bangkok - since January 2015. Work is also underway to allow the seamless booking of each airline's flights...

  • Page 44
    ... Nok Air and Scoot remain committed to NokScoot and are working to help Thailand's Department of Civil Aviation expeditiously resolve the situation. Scoot was recognised as 2014 marketer of the Year by marketing magazine, and was honoured as Asia-Pacific's Best Low Cost Airline by AirlineRatings...

  • Page 45
    ... factor, with its operating fleet of 24 aircraft as at 31 march 2015, and a further adjustment to 23 aircraft at the end of the new financial year. Capacity management involved removal of weak routes, while frequencies were increased to other points. New destinations were also added to the network...

  • Page 46
    ...the Group's performance Revenue ($ million) Operating Profit ($ million) $ (+$322 million) 15,566m 14,525 14,858 15,098 15,244 +2.1% $ (+$151 million) 410m 1,271 +58.3% 20,000 1,500 15,000 15,566 1,200 900 10,000 600 5,000 410 300 286 229 259 0 2010/11 2011/12 2012/13 2013/14 2014...

  • Page 47
    ... the Group key Financial Highlights 2014/15 2013/14 % Change earnings For the Year ($ million) Revenue Expenditure Operating profit Profit attributable to owners of the Parent per Share Data (cents) Earnings per share - basic Ordinary dividend per share Special dividend per share ratios (%) Return...

  • Page 48
    ...more aircraft on lease, alleviated by lower depreciation and staff costs. Consequently, the Group's operating profit excluding Tiger Airways improved $160 million to $419 million for the financial year ended 31 march 2015. Except for SIA Engineering Company ("SIAEC Group"), operating performance for...

  • Page 49
    ... of the 2013/14 final and special dividends (-$423 million) and the 2014/15 interim dividend (-$58 million). These were partially offset by share of other changes in equity of an associated company (+$81 million) and profits for the financial year (+$368 million). The fair value change on cash...

  • Page 50
    ...spare engines, partially offset by lower dividends received from associated and joint venture companies. Dividend Payout Cents Per Cent Group Capital Expenditure $ million Times 150 80 3,000 4 120 70 2,500 3 2,000 90 60 60 1,000 50 30 500 1 1,500 2 0 2010/11 2011/12 2012/13 2013/14 2014/15...

  • Page 51
    ...000 1,000 0 2010/11 2011/12 2012/13 2013/14 2014/15 0 Internally Generated Cash Flow ($ million) Group Staff Strength and Productivity The Group's staff strength as at 31 march 2015 is as follows: 31 March 2015 2014 % Change Singapore Airlines SIA Engineering Group SilkAir SIA Cargo Others 13...

  • Page 52
    ...of goods and services Add: Interest income Surplus on disposal of aircraft, spares and spare engines Dividends from long-term investments Other non-operating items Share of profits of joint venture companies Share of losses of associated companies Exceptional items Total value added for distribution...

  • Page 53
    ... Traffic and load Factor million Per Cent 140,000 120,000 85 83 100,000 80,000 60,000 40,000 77 20,000 0 2010/11 2011/12 2012/13 2013/14 2014/15 81 79 75 Available Seat-km (million) Revenue Passenger-km (million) Passenger Load Factor (%) Singapore Airlines | Annual Report FY2014/15 | 51

  • Page 54
    ... Performance (continued) A review of the Company's operating performance by route region is as follows: By route region r3 (2014/15 against 2013/14) passengers Carried revenue available Seat Change passenger KM KM (thousand) % Change % Change East Asia Americas Europe South West Pacific West Asia...

  • Page 55
    ...) Operating Performance (continued) Earnings 2014/15 $ million 2013/14 $ million % Change Revenue Expenditure Operating profit Finance charges Interest income Surplus on disposal of aircraft, spares and spare engines Dividends from subsidiary and associated companies Dividends from long-term...

  • Page 56
    ... 81.6 A breakdown of passenger revenue by route region and area of original sale is shown below: By Route Region ($ million) 2014/15 2013/14 % Change By Area of Original Sale R5 ($ million) 2014/15 2013/14 % Change East Asia Americas Europe South West Pacific West Asia and Africa Systemwide 2,701...

  • Page 57
    ... 2014/15. 2014/15 $ million % 2013/14 $ million % % Change Fuel costs Staff costs Depreciation R6 Handling charges Rentals on leased aircraft Inflight meals and other passenger costs Aircraft maintenance and overhaul costs Airport and overflying charges Sales costs R7 Communication and information...

  • Page 58
    ... ultra long-haul direct flights to Americas. A change in fuel productivity (passenger aircraft) of 1.0 per cent would impact the Company's annual fuel cost by about $44 million, before accounting for changes in fuel price, US dollar exchange rate and flying operations. A change in the price of fuel...

  • Page 59
    ... officers) Technical crew Cabin crew Other ground staff 1,319 2,099 7,586 2,916 13,920 location Singapore East Asia Europe South West Pacific West Asia and Africa Americas 11,922 856 420 321 254 147 13,920 The Company's average staff productivity ratios R10 are shown below: 2014/15 2013/14 % Change...

  • Page 60
    ... SIA Engineering Company Limited ("SIAEC Group"), SIA Cargo and SilkAir (Singapore) Private Limited ("SilkAir"). The following performance review includes intra-group transactions. SIAEC Group 2014/15 $ million 2013/14 $ million % Change Total revenue Total expenditure Operating profit Net profit...

  • Page 61
    ... amount paid previously, following SIA Cargo's appeal. As at 31 march 2015, SIA Cargo operated a fleet of eight 747-400 freighters. SIA Cargo's equity was $751 million (-15.5 per cent). SilkAir 2014/15 $ million 2013/14 $ million % Change Total revenue Total expenditure Operating profit Profit...

  • Page 62
    ...Fame MAY 2014 Singapore Airlines Ranked Number One AB Japan Airline Ranking Best Overall Airline (Third Consecutive Year) 20 14 20 15 60 PERFORMANCE | List of Awards | Business Traveller Middle East Awards Best Asian Airline Servicing the Middle East (Third Consecutive Year) Best Inflight Meals...

  • Page 63
    ... Annual "Best of the Best" Awards Best Airline Saveur Culinary Awards (USA) Readers' Choice Best Inflight Dining - Economy Class Readers' Choice Best Airport lounge - Silverkris lounge Korean Customer Forum Brand of the Year 2014 MARCH 2015 Fortune Magazine's World's Most Admired Companies 2015...

  • Page 64
    ..., including reports of testing and simulation of business continuity plans and other risk responses. The BSRC also ensured that the other Board Committees and the full Board of Directors were kept informed of the strategic and other key risks. The SIA Group Risk management Committee supported the...

  • Page 65
    ... the Company's Annual and Extraordinary General meetings. The CEO heads the management Committee and oversees the execution of the Company's corporate and business strategies and policies, and the conduct of its business. The Board's Conduct of Affairs, Board Composition and Guidance, Chairman and...

  • Page 66
    Corporate Governance Report The Board held four meetings in the financial year. The Board holds separate Strategy Sessions to assist management in developing its plans and strategies for the future. The nonexecutive Directors also set aside time to meet without the presence of management to review ...

  • Page 67
    ... for each Director and Relevant Key management Personnel and administers the Company's Profit Sharing Bonus, EVA-based Incentive Plan, Enhanced Strategic Incentive Plan, Performance Share Plan and Restricted Share Plan for senior executives. The award of shares to senior executives is based on...

  • Page 68
    ... Plans for CEO and Senior Management This comprises the following three components: a. Profit-Sharing Bonus ("PSB") The PSB targets are designed to achieve a good balance of both Group financial objectives and the Company's operating performance. Payment of the variable bonus is based on the Group...

  • Page 69
    ... 88 of the Report of the Board of Directors. Share Incentive Plans i. The SIA Performance Share Plan 2014 ("PSP 2014") The PSP 2014 is a share-based incentive scheme established with the objective of rewarding, motivating, and retaining a select group of key Senior management staff who shoulder the...

  • Page 70
    ...peer group of large listed airline companies for the six-year period from FY2008/09 to FY2013/14. The Directors' fees paid in FY2014/15 amounted to $1,544,727 [FY2013/14: $1,531,863] and were based on the following rates: rates ($) Board Retainers Committee Retainers Attendance Fees Board member...

  • Page 71
    ... Profit-Sharing Bonus, cash component [50%] of the Base Strategic Incentive Plan (Base SIP) and 100% of the Additional Strategic Incentive Plan (Additional SIP). The amount paid in the reporting year is a percentage of the individual's EVA Bank. See above for additional information on the EBIP, Base...

  • Page 72
    ... for the financial year April 2015 - march 2016, and KPmG LLP had expressed their willingness to accept the appointment. The proposal for a new auditor resulted from an internal corporate governance process to review its auditor arrangements every five years. The Company has complied with Rules 712...

  • Page 73
    ... an independent department that reports directly to the Audit Committee. The department assists the Committee and the Board by performing regular evaluations on the Group's internal controls, financial and accounting matters, compliance, business and financial risk management policies and procedures...

  • Page 74
    ... the opening of new bank accounts and any proposed credit facilities. Each Group Company has its own approval limits and procedures for every banking transaction, having regard to the nature of the transaction concerned. These approval limits and procedures are updated from time to time and are...

  • Page 75
    ...- - 4 - - 4 - - 4 - - 4 4 2* 4 2 - - - - - 2* - 1 4 2* 4 1 4 - 4 - - - - - 4 4 7 7 - - - - 4 4 4 4 * Number of meetings held during Director's tenure on Board / Committee Note: (1) Retired from the Board on 31 July 2014 Singapore Airlines | Annual Report FY2014/15 | 73

  • Page 76
    ...listed Companies organisation/Company 1. SIA Engineering Company Limited 2. CapitaLand Limited title Chairman Director Other Major Appointments organisation/Company 1. Shanghai Commercial & Savings Bank Ltd, TWN 2. Great malaysia Textile Investments Pte Ltd title managing Director managing Director...

  • Page 77
    ...1. SIA Engineering Company Limited 2. Virgin Australia Holdings Limited title Director Director Others organisation/Company 1. mount Alvernia Hospital 2. International Air Transport Association 3. National Council of Social Service 4. National University of Singapore title Director member, Board of...

  • Page 78
    ... 3 years organisation/Company 1. 2. 3. 4. 5. PricewaterhouseCoopers (PwC) Singapore Economic Development Board Shared Services for Charities Limited Singapore Arts School Ltd The Straits Trading Company Limited title Chairman Director Director Director Director 76 GOvERNANCE | Further Information...

  • Page 79
    ...a director: Board committee(s) served on: Board Audit Committee 1 December 2009 30 July 2014 member Current Directorships in Other listed Companies organisation/Company 1. 2. 3. 4. 5. 6. 7. 8. Li & Fung Limited Global Brands Group Holding Limited Trinity Limited Convenience Retail Asia Limited Shui...

  • Page 80
    ... Board Compensation and Industrial Relations Committee 1 September 2012 26 July 2013 member member Current Directorships in Other listed Companies organisation/Company 1. manulife Financial Corporation, Canada title Director Other Major Appointments organisation/Company 1. LinHart Group, Singapore...

  • Page 81
    ... 26 July 2012 member member Major Appointments organisation/Company 1. AX 21 Holdings Pte Ltd 2. Club 21 Pte Ltd title managing Director managing Director Others organisation/Company 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. National Parks Board Club 21 Distribution (Singapore) Pte Ltd...

  • Page 82
    ... 2012 Chairman member Current Directorships in Other listed Companies organisation/Company 1. Bayer AG 2. microsoft Corporation title Director Director Directorships/Appointments in the past 3 years organisation/Company 1. UBS Group AG title Director 80 GOvERNANCE | Further Information on Board...

  • Page 83
    ... organisation/Company 1. 2. 3. 4. 5. 6. Eastern Development Holdings Pte Ltd Eastern Development Private Limited Epimetheus Ltd Singapore Health Services Pte Ltd Singapore Business Federation Singapore International mediation Centre Limited title Director Director Director Director member, Board of...

  • Page 84
    ... Changes in Equity Consolidated Statement of Cash Flows Notes to Financial Statements Additional Information Quarterly Results of the Group Five-Year Financial Summary of the Group Ten-Year Statistical Record The Group Fleet Profile Group Corporate Structure Information on Shareholdings Share Price...

  • Page 85
    ...debentures of, the Company or any other body corporate, other than as disclosed under "Equity Compensation Plans of the Company" in this report. 3 Directors' Interests in Shares, Share Options and Debentures The following Directors who held office at the end of the financial year had, according to...

  • Page 86
    ... financial year. Between the end of the financial year and 21 April 2015, Mr Goh Choon Phong's direct interest in the Company increased to 586,802 shares due to the release of 27,135 shares to him on 1 April 2015, following the final vesting of 25% of time-based restricted shares awarded in May 2010...

  • Page 87
    ... options lapsed aggregate options outstanding at end of financial year under review Goh Choon Phong - 444,075 444,075 - - No options have been granted to controlling shareholders or their associates, or Parent Group Directors or employees. Singapore Airlines | Annual Report FY2014/15 | 85

  • Page 88
    ..., a base number of conditional share awards ("Base Award") was/is granted to eligible participants annually. Depending on the achievement of pre-determined targets over a two-year performance period for the RSP/RSP 2014 and a three-year performance period for the PSP/PSP 2014, the Board Compensation...

  • Page 89
    ... of the Board Compensation & Industrial Relations Committee. The details of the shares awarded under time-based RSP to a Director of the Company are as follows: aggregate awards granted since commencement Balance of rSp to end of as at financial year 31 March 2015 under review aggregate ordinary...

  • Page 90
    Report by the Board of Directors 5 Equity Compensation Plans of the Company (continued) (iv) Deferred RSP/RSP 2014 (continued) (b) Deferred rSp 2014 awards aggregate Base awards granted since commencement Balance of DSa to end of as at financial year Modification^ 31 March 2015 under review ...

  • Page 91
    ...(ii) (iii) (iv) (v) (vi) quarterly and annual financial statements; audit scopes, plans and reports of the external and internal auditors; effectiveness of material controls, including financial, compliance, information technology and risk management controls; interested person transactions; whistle...

  • Page 92
    ... changes in equity of the Company for the financial year ended on that date; and at the date of this statement there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due. (ii) On behalf of the Board, STEPHEN lEE CHING YEN Chairman GOH CHOON...

  • Page 93
    ...Singapore Airlines Limited (the "Company") and its subsidiaries (the "Group") set out on pages 93 to 204, which comprise the statements of financial position of the Group and the Company as at 31 March 2015, the statements of changes in equity of the Group and the Company and the consolidated profit...

  • Page 94
    ... by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act. ERNST & YOuNG llP Public Accountants and Chartered Accountants Singapore Dated this 14th day of May 2015 Singapore 92 FINANCIAl

  • Page 95
    ... passenger costs Crew expenses Other operating expenses Operating profit Finance charges Interest income Surplus on disposal of aircraft, spares and spare engines Dividends from long-term investments Other non-operating items Share of profits of joint venture companies Share of losses of associated...

  • Page 96
    ... subsequently to profit or loss: Actuarial gain/(loss) on revaluation of defined benefit plans Share of gain on property revaluation of an associated company Total comprehensive income for the financial year, net of tax Total comprehensive income for the financial year Total comprehensive income...

  • Page 97
    ... the Company 2015 2014 Equity attributable to owners of the Parent Share capital Treasury shares Other reserves Non-controlling interests Total equity Deferred account Deferred taxation long-term liabilities Provisions Defined benefit plans Represented by: Property, plant and equipment Aircraft...

  • Page 98
    ... income for the financial year Profit for the financial year Total comprehensive income for the financial year, net of tax Transactions with owners, recorded directly in equity Contributions by and distributions to owners Share of other changes in equity of associated companies Surplus on dilution...

  • Page 99
    ...parent Foreign currency Share-based translation compensation Fair value reserve reserve reserve General reserve total noncontrolling interests total equity (101....3 17.2 9.2 - (107.0) 28.6 (553.2) (523.9) (2.5) 38.5 100.5 136.5 (387.4) 12,930.1 Singapore Airlines | Annual Report FY2014/15 | 97

  • Page 100
    ... the financial year, net of tax Transactions with owners, recorded directly in equity Contributions by and distributions to owners Surplus on dilution of interest in subsidiary companies due to share options exercised Share-based compensation expense Share options and share awards lapsed Purchase of...

  • Page 101
    ...of the parent Foreign currency Share-based translation compensation Fair value reserve reserve reserve General reserve total noncontrolling interests total equity (191.8) ...- - (57.4) (41.4) 337.4 30.2 4.7 - (16.0) 13.2 (375.2) (343.1) 13,574.6 Singapore Airlines | Annual Report FY2014/15 | 99

  • Page 102
    Statements of Changes in Equity For The Financial Year Ended 31 March 2015 (in $ million) the Company notes Share capital treasury shares Capital reserve Share-based compensation reserve Fair value reserve General reserve total Balance at 1 April 2014 Comprehensive income Net fair value changes on...

  • Page 103
    Statements of Changes in Equity For The Financial Year Ended 31 March 2015 (in $ million) the Company notes Share capital treasury shares Capital reserve Share-based compensation reserve Fair value reserve General reserve total Balance at 1 April 2013 Effects of adopting revised FRS 19 Restated ...

  • Page 104
    ... Surplus on disposal of aircraft, spares and spare engines Dividends from long-term investments Other non-operating items Share of profits of joint venture companies Share of losses of associated companies Exceptional items Operating cash flow before working capital changes Decrease in trade and...

  • Page 105
    ... company Return of capital by an associated company Net cash used in investing activities Cash flow from financing activities Dividends paid Dividends paid by subsidiary companies to non-controlling interests Interest paid Proceeds from borrowings Repayment of borrowings Repayment of long-term...

  • Page 106
    ... (Private) Limited, incorporated in the Republic of Singapore. The registered office of the Company is at Airline House, 25 Airline Road, Singapore 819829. The principal activities of the Group consist of passenger and cargo air transportation, engineering services, training of pilots, air charters...

  • Page 107
    ... for annual periods beginning on or after 1 January 2018, with early application permitted. Retrospective application is required, but comparative information is not compulsory in the year of adoption. The Group is currently assessing the impact of FRS 109. Singapore Airlines | Annual Report FY2014...

  • Page 108
    ...consolidated statement of financial position, separately from equity attributable to owners of the Parent. Changes in the Company's ownership interest in a subsidiary company that do not result in a loss of control are accounted for as equity transactions. In such circumstances, the carrying amounts...

  • Page 109
    ... the equity method, the investment in associated or joint venture companies are carried in the statement of financial position at cost plus post-acquisition changes in the Group's share of net assets of the associated or joint venture companies. The profit or loss reflects the share of results of...

  • Page 110
    ... period and method are reviewed at least annually. (ii) Deferred engine development cost This relates to the Group's share of engine development payments made in connection with its participation in aircraft engine development projects with other companies. Amortisation of such intangibles...

  • Page 111
    ... are translated using the exchange rates as at the dates of the initial transactions. Non-monetary assets and liabilities measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Singapore Airlines | Annual Report FY2014/15...

  • Page 112
    ...the profit and loss account. For the purpose of the consolidated financial statements, the net assets of the foreign subsidiary, associated and joint venture companies are translated into SGD at the exchange rates ruling at the end of the reporting period. The financial results of foreign subsidiary...

  • Page 113
    ...the profit and loss account. For sale and finance leaseback, differences between sales proceeds and net book values are taken to the statement of financial position as deferred gain or loss on sale and leaseback transactions, included under deferred account and amortised over the minimum lease terms...

  • Page 114
    ... over the lease term on a straight-line basis. Gains or losses arising from sale and operating leaseback of aircraft are determined based on fair values. Excess of sales proceeds over fair values are taken to the statement of financial position as deferred gain on sale and leaseback transactions...

  • Page 115
    ...profit and loss account as a reclassification adjustment when the investment is derecognised. (m) Investments Investments held by the Group are classified as available-for-sale or held-to-maturity. Investments classified as availablefor-sale are stated at fair value, unless there is no active market...

  • Page 116
    ...-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. For non-financial assets...

  • Page 117
    ... not exceed its amortised cost at the reversal date. The amount of reversal is recognised in the profit and loss account. (ii) Financial assets carried at cost If there is objective evidence (such as significant adverse changes in the business environment where the issuer operates, probability of...

  • Page 118
    ... and associated companies are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in the profit and loss account when the liabilities are derecognised as well as through the amortisation process. 116...

  • Page 119
    ... shares are nullified for the Group and no dividends are allocated to them respectively. (z) Frequent flyer programme The Company operates a frequent flyer programme called "KrisFlyer" that provides travel awards to programme members based on accumulated mileage. A portion of passenger revenue...

  • Page 120
    ... that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and n respect of deductible temporary differences associated with investments in subsidiary, associated and I joint venture companies, deferred tax assets are...

  • Page 121
    ..., cargo and mail, engineering services, training of pilots, air charters and tour wholesaling and related activities. Revenue for the Group excludes dividends from subsidiary companies and intra-group transactions. Passenger and cargo sales are recognised as operating revenue when the transportation...

  • Page 122
    ... CEO Restricted Share Grant for awarding of fully paid ordinary shares to senior executives and key Senior Management, when and after pre-determined performance or service conditions are accomplished. Details of the plans are disclosed in Note 5 to the financial statements. The cost of these equity...

  • Page 123
    ... that are held by a long-term employee benefit fund or qualifying insurance policies. Plan assets are not available to the creditors of the Group, nor can they be paid directly to the Group. Fair value of plan assets is based on market price information. When no market price is available, the fair...

  • Page 124
    ...(af) Training and development costs Training and development costs, including start-up programme costs, are charged to the profit and loss account in the financial year in which they are incurred. (ag) Borrowing costs Borrowing costs incurred to finance advance and progress payments for aircraft are...

  • Page 125
    .... Revenue from other operations, which consist principally of engineering services and cargo operations, is derived in East Asia and therefore, is not shown. Assets, which consist principally of flight and ground equipment, support the entire worldwide transportation system, and are mainly located...

  • Page 126
    ... operational lives and residual values are reviewed on an annual basis. The carrying amount of the Group's and the Company's aircraft fleet at 31 March 2015 was $9,632.3 million (2014: $9,788.4 million) and $7,553.2 million (2014: $8,228.6 million) respectively. During the financial year, the Group...

  • Page 127
    ... Information (in $ million) For management purposes, the Group is organised into business units based on the nature of the services provided, and has four reportable operating segments as follows: (i) (ii) The airline operations segment provides passenger air transportation. The engineering services...

  • Page 128
    .../15 Total revenue External revenue Inter-segment revenue Results Segment result Finance charges Interest income Surplus/(Loss) on disposal of aircraft, spares and spare engines Dividends from long-term investments Other non-operating items Share of (losses)/profits of joint venture companies Share...

  • Page 129
    engineering services FY2014/15 Cargo operations FY2014/15 others FY2014/15 total of segments FY2014/15 elimination* FY2014/15 Consolidated FY2014/15 437.8 681.9 1,119.7 84.3 (0.3) 1.4....2 (14.3) 52.0 (129.1) 34.5 (36.2) 406.7 367.9 38.8 406.7 Singapore Airlines | Annual Report FY2014/15 | 127

  • Page 130
    ...14 Total revenue External revenue Inter-segment revenue Results Segment result Finance charges Interest income Surplus/(Loss) on disposal of aircraft, spares and spare engines Dividends from long-term investments Other non-operating items Share of profits of joint venture companies Share of (losses...

  • Page 131
    engineering services FY2013/14 Cargo operations FY2013/14 others FY2013/14 total of segments FY2013/14 elimination* FY2013/14 Consolidated FY2013/14 508.5 669.7 1,...259.3 (37.3) 62.7 51.2 19.6 1.9 94.0 (45.2) (38.3) 56.5 424.4 359.5 64.9 424.4 Singapore Airlines | Annual Report FY2014/15 | 129

  • Page 132
    ...) airline operations 2015 Other information as at 31 March Segment assets Investments in associated and joint venture companies Long-term investments Accrued interest receivable Total assets Segment liabilities Provisions Finance lease commitments Loans Notes payable Defined benefit plans Accrued...

  • Page 133
    engineering services 2015 Cargo operations 2015 others 2015 total of segments 2015 elimination* 2015 Consolidated 2015 1,177.2 465.3 14.6 - 1,657.1 228.4 0.2 - 33.2 - - - 44.0 305.8....4 13.5 1,761.5 10,991.1 2,633.2 30.9 1,538.8 31.7 25.9 49.2 Singapore Airlines | Annual Report FY2014/15 | 131

  • Page 134
    ... Financial Statements 31 March 2015 4 Segment Information (in $ million) (continued) Business segments (continued) airline operations 2014 Other informationas at 31 March Segment assets Investments in associated and joint venture companies Long-term investments Accrued interest receivable Total...

  • Page 135
    engineering services 2014 Cargo operations 2014 others 2014 total of segments 2014 elimination* 2014 Consolidated 2014 1,256.7 435.8 14.6 - 1,707.1 245.9 0.2 - 21.8 - - -....8 800.0 169.6 4.4 1,990.0 9,067.9 2,574.6 29.7 1,575.5 338.3 25.7 28.6 Singapore Airlines | Annual Report FY2014/15 | 133

  • Page 136
    ... table presents revenue information on airline operations by geographical areas for the financial years ended 31 March 2015 and 2014. By area of original sale FY2014/15 FY2013/14 East Asia Europe South West Pacific Americas West Asia and Africa Systemwide Non-scheduled services and incidental...

  • Page 137
    ... Share Options Scheme, Singapore Airlines Limited Restricted Share Plan ("RSP") and Performance Share Plan ("PSP"), the SIA Engineering Company Limited RSP and PSP, Tiger Airways Group RSP, PSP and CEO Restricted Share Grant and the amounts recognised in the profit and loss account for share-based...

  • Page 138
    ...to the Financial Statements 31 March 2015 5 Staff Costs (in $ million) (continued) Share-based compensation expense (continued) Share option plans (continued) Movement of share options during the financial year The following table illustrates the number and weighted average exercise prices of, and...

  • Page 139
    5 Staff Costs (in $ million) (continued) Share-based compensation expense (continued) Share option plans (continued) Terms of share options outstanding as at 31 March 2015: exercise price number outstanding and exercisable exercisable period 1.7.2006 - 30.6.2015 1.7.2007 - 30.6.2015 1.7.2008 - 30...

  • Page 140
    ... Margin • Value Added per $ Employment Cost Award of fully-paid ordinary shares of the Company, conditional on performance targets set at the start of a three-year overlapping performance period based on stretched long-term corporate objectives. Performance Conditions • • Absolute Total...

  • Page 141
    ...satisfied. For performance share grants with non-market conditions, the Group revises its estimates of the number of share grants expected to vest and corresponding adjustments are made to the profit and loss account and share-based compensation reserve. Singapore Airlines | Annual Report FY2014/15...

  • Page 142
    Notes to the Financial Statements 31 March 2015 5 Staff Costs (in $ million) (continued) Share-based compensation expense (continued) Share-based incentive plans (continued) Under the PSP/PSP 2014, eligible key Senior Management are required to hold a portion of the shares released to them under a...

  • Page 143
    ... shares outstanding on 14 August 2014 under the DSA. 6 Operating Profit (in $ million) Operating profit for the financial year was arrived at after charging/(crediting): the Group FY2014/15 FY2013/14 Compensation for changes in aircraft delivery slots Interest income from short-term investments...

  • Page 144
    ...) the Group FY2014/15 FY2013/14 Impairment of aircraft Surplus on disposal of other property, plant and equipment Surplus on disposal of a subsidiary company Loss on liquidation of an associated company Impairment on long-term investment Writeback of shutdown costs of an associated company Loss on...

  • Page 145
    ... on its long-term investment of an equity stake of 16% in China Cargo Airlines to fully write down its carrying value, due to negative shareholders' equity, and continued operating losses incurred. The Company recorded an additional gain of $7.3 million on the sale of Virgin Atlantic Limited arising...

  • Page 146
    ...product of accounting profit multiplied by the applicable tax rate for the years ended 31 March is as follows: the Group FY2014/15 FY2013/14 Profit before taxation Less: Share of losses/(profits) of associated and joint venture companies Taxation at statutory corporate tax rate of 17.0% Adjustments...

  • Page 147
    ...-tier] in respect of FY2013/14) 129.2 293.6 58.4 481.2 200.1 - 117.7 317.8 The Directors propose that a final tax exempt (one-tier) dividend of 17.0 cents per share amounting to $198.8 million be paid for the financial year ended 31 March 2015. Singapore Airlines | Annual Report FY2014/15 | 145

  • Page 148
    Notes to the Financial Statements 31 March 2015 14 Share Capital (in $ million) the Group and the Company number of shares amount 2015 2014 2015 2014 Issued and fully paid share capital Ordinary shares Balance at 1 April and 31 March Special share Balance at 1 April and 31 March # 1,199,851,018...

  • Page 149
    ... reserve Share-based compensation reserve represents the equity-settled share options and awards granted to employees. The reserve is made up of the cumulative value of services received from employees recorded on grant of equity-settled share options and awards. Singapore Airlines | Annual Report...

  • Page 150
    ...31 March 2015 2014 the Company 31 March 2015 2014 Balance at 1 April Net gain/(loss) on fair value changes Balance at 31 March Gain/(Loss) on fair value changes Adjustment on acquisition of an associated company Recognised in the profit and loss account on disposal of available-for-sale investments...

  • Page 151
    ...the Group's and the Company's general reserves are set out in the Statement of Changes in Equity respectively. 17 Deferred Account (in $ million) the Group 31 March 2015 2014 the Company 31 March 2015 2014 Deferred (loss)/gain on sale and leaseback transactions - operating leases - finance leases...

  • Page 152
    ... to the Financial Statements 31 March 2015 18 Deferred Taxation (in $ million) the Group Statement of financial position profit and loss 31 March 2015 2014 FY2014/15 FY2013/14 the Company Statement of financial position 31 March 2015 2014 The deferred taxation arises as a result of: Deferred tax...

  • Page 153
    ...) the Group 31 March 2015 2014 the Company 31 March 2015 2014 Notes payable Current Non-current Loans Current Non-current Finance lease commitments Current Non-current Maintenance reserve Current Non-current Purchase option price payable to lessor Non-current Total long-term liabilities Notes...

  • Page 154
    ... Aircraft Limited and Winnie Aircraft Limited. The subsidiary companies have purchase options to acquire legal ownership of the aircraft from the SPEs at the end of the lease term at a bargain purchase option price. The fair value of the loans amounted to $336.3 million as at 31 March 2015 (2014...

  • Page 155
    ... claims, upgrade costs, return costs for leased aircraft, lease end liability and onerous leases. It is expected that the return costs will be incurred by the end of the lease terms. An analysis of the provisions is as follows: the Group 31 March 2015 2014 the Company 31 March 2015 2014 Balance at...

  • Page 156
    ... to the Financial Statements 31 March 2015 21 Property, Plant and Equipment (in $ million) The Group aircraft spares aircraft spare engines aircraft Cost At 1 April 2013 Additions Transfers Disposals Exchange differences At 31 March 2014 Additions Acquisition of a subsidiary company Transfers...

  • Page 157
    Freehold land Freehold buildings leasehold land and buildings plant and equipment office and computer equipment advance and progress payments total 15.7 - - - - 15.7 15.7 148.4 - -....4 183.6 169.3 228.2 276.2 30.1 34.2 2,440.7 3,045.9 Singapore Airlines | Annual Report FY2014/15 | 155

  • Page 158
    Notes to the Financial Statements 31 March 2015 21 Property, Plant and Equipment (in $ million) (continued) The Company aircraft spares aircraft spare engines aircraft Cost At 1 April 2013 Additions Transfers Disposals At 31 March 2014 Additions Transfers Disposals At 31 March 2015 Accumulated ...

  • Page 159
    Freehold land Freehold buildings leasehold land and buildings plant and equipment office and computer equipment advance and progress payments total 15.7 - - - 15.7 - - - 15.7 ... 19.8 175.3 216.5 17.9 19.4 1,622.7 1,910.3 10,258.9 9,906.4 Singapore Airlines | Annual Report FY2014/15 | 157

  • Page 160
    ... on two Boeing 777-200ER aircraft that were removed from the operating fleet. The recoverable amount was based on the estimated disposal value. This amount has been recognised as an exceptional item (Note 10) during the financial year. In the previous financial year, four Boeing 747-400 freighters...

  • Page 161
    ... Group Deferred Computer engine advance and software development progress and others cost payments Goodwill Brand trademarks total Cost At 1 April 2013 Additions Disposals Transfers Exchange differences At 31 March 2014 Additions Acquisition of a subsidiary company Disposals Transfers Exchange...

  • Page 162
    ... rates represent the current market assessment of the risks specific to the cash-generating unit, regarding the time value of money and individual risks of the underlying assets which have not been incorporated in the cash flow estimates. Growth rate - The forecasted long-term growth rate is based...

  • Page 163
    ... has been performed. The recoverable amount of the CGU (the aircraft engine development project) has been determined based on value-in-use calculations using cash flow projections from business plan approved by the Management for the next 47 years (2014: 48 years). The pre-tax discount rate applied...

  • Page 164
    ... March 2015 23 Subsidiary Companies (in $ million) the Company 31 March 2015 2014 Investment in subsidiary companies (at cost) Quoted equity investments Unquoted equity investments Accumulated impairment loss Long term loan to a subsidiary company Market value of quoted equity investments # 414...

  • Page 165
    ... of business percentage of equity held by the Group 2015 2014 principal activities SIA Engineering Company Limited Aircraft Maintenance Services Australia Pty Ltd(1)* NexGen Network (1) Holding Pte Ltd(1) NexGen Network (2) Holding Pte Ltd(1) SIA Engineering (USA), Inc.@(1) Engineering services...

  • Page 166
    ...that are material to the Group: SIa engineering Company Group of Companies 2015 2014 tiger airways Group of Companies 2015 Proportion of ownership interest held by NCI Profit/(Loss) allocated to NCI during the reporting period Accumulated NCI at the end of reporting period Dividends paid to NCI 22...

  • Page 167
    ...* Net cash flow from operations Acquisition of significant property, plant and equipment 96.1 (49.5) 113.0 (67.9) 28.7 (40.7) (85.8) (365.2) * Tiger Airways Group of Companies was a material associated company in the previous financial year. Singapore Airlines | Annual Report FY2014/15 | 165

  • Page 168
    ...full-service and low-cost operations. As a regional low-cost airline, Tiger Airways is an important part of the Company's portfolio given that it complements the operations of Scoot, which operates widebody aircraft on medium-haul routes. The Company is therefore committed to the long-term growth of...

  • Page 169
    ... (g) Changes in ownership interests in subsidiary companies Acquisition of non-controlling interests On 16 May 2014, the Group completed the restructuring of one of its subsidiary companies, Singapore Jamco Pte Ltd ("SJAMCO"). As part of the restructuring, a new company, Singapore Jamco Services Pte...

  • Page 170
    ... Virgin Australia's Board of Directors. As a result, the Company gained significant influence over the investment, as such, Virgin Australia became an associated company of the Company. A goodwill of $116.3 million was recognised in the carrying value of the associated company, which is the purchase...

  • Page 171
    ... and place of business percentage of equity held by the Group 2015 2014 principal activities RCMS Properties Private Limited^++ Tata SIA Airlines Limited @@ Hotel ownership and management Domestic and international full service scheduled passenger airlines services Air transportation Repair and...

  • Page 172
    ...year end 31 December Financial year end 30 November (3 * ** ^ ^^ # + ++ +++ The carrying amounts of the investment in associated companies are as follows: the Group 31 March 2015 2014 Tiger Airways Holdings Limited ("Tiger Airways") Virgin Australia Holdings Limited ("VAH") Eagle Services Asia...

  • Page 173
    ... included in the financial statements of the associated companies prepared in accordance with Singapore Financial Reporting Standards. A reconciliation of the summarised financial information to the carrying amounts of VAH and ESA is as follows: the Group 31 March 2015 2014 vAH Group's share of net...

  • Page 174
    ... to the Financial Statements 31 March 2015 24 Associated Companies (in $ million) (continued) Aggregate information about the Group's investment in associated companies that are not individually material are as follows: The Group's share of the assets and liabilities comprises: the Group 31 March...

  • Page 175
    ... Group 2015 2014 principal activities International Engine Component Overhaul Pte Ltd (1) Singapore Aero Engine Services Pte Ltd (1) NokScoot Airlines Co., Ltd (2) (1) (2) Repair and overhaul of aero engine components and parts Repair and overhaul of aircraft engines Air transportation Singapore...

  • Page 176
    ... is extracted from the financial statements of SAESL that is prepared in accordance with Singapore Financial Reporting Standards. A reconciliation of the summarised financial information to the carrying amount of SAESL is as follows: the Group 31 March 2015 2014 Group's share of net assets 126...

  • Page 177
    .../15 the Group FY2013/14 Results (Loss)/Profit after tax Other comprehensive income Total comprehensive income (5.0) (1.6) (6.6) 7.5 (0.2) 7.3 26 long-Term Investments (in $ million) the Group 31 March 2015 2014 the Company 31 March 2015 2014 Available-for-sale investments Quoted Government...

  • Page 178
    ... recognised as other operating expenses in the profit and loss account. 29 Trade Debtors (in $ million) the Group 31 March 2015 2014 the Company 31 March 2015 2014 Trade debtors Accrued receivables Amount owing from associated companies Amount owing from joint venture companies Amounts owing from...

  • Page 179
    ...Group 31 March 2015 2014 the Company 31 March 2015 2014 Not past due and not impaired Past due but not impaired Impaired trade debtors - collectively assessed Less: Accumulated impairment losses Impaired trade debtors - individually assessed Customers...713.1 Singapore Airlines | Annual Report FY2014...

  • Page 180
    ... losses is as follows: the Group 31 March 2015 2014 the Company 31 March 2015 2014 Balance at 1 April Acquisition of a subsidiary company Charged/(Written back) during the year Written off during the year Balance at 31 March Bad debts written off directly to profit and loss account, net of debts...

  • Page 181
    ... day and one year depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates. The weighted average effective interest rate for short-term deposits is 0.89% (FY2013/14: 0.65%) per annum. Singapore Airlines | Annual Report FY2014/15 | 179

  • Page 182
    Notes to the Financial Statements 31 March 2015 33 Trade and Other Creditors (in $ million) the Group 31 March 2015 2014 the Company 31 March 2015 2014 Trade creditors Amounts owing to associated companies Funds from subsidiary companies Amounts owing to subsidiary companies 2,903.1 3.4 2,906.5 ...

  • Page 183
    ... principally to the acquisition of aircraft fleet and related equipment. In addition, the Group's share of joint venture companies' commitments for capital expenditure totalled $24.2 million (2014: $2.5 million). (b) Operating lease commitments as lessee Aircraft The Company has four B777-200ER, two...

  • Page 184
    ...During the financial year, one lease ceased in accordance with the contractual terms and conditions upon engine damage beyond economical repair. Future minimum lease payments under non-cancellable operating leases are as follows: the Group 31 March 2015 2014 the Company 31 March 2015 2014 Not later...

  • Page 185
    ... Group to cover obligations for the assets leased by Tigerair Australia. SIA Cargo had previously entered into a commercial aircraft lease. This non-cancellable lease has a remaining lease term of five months. The lease rental is fixed throughout the lease term. Singapore Airlines | Annual Report...

  • Page 186
    ...Financial Statements 31 March 2015 35 Capital and Other Commitments (in $ million) (continued) (b) Operating lease commitments (continued) as lessor (continued) Aircraft (continued) Future minimum lease receivables under non-cancellable operating leases are as follows: the Group 31 March 2015 2014...

  • Page 187
    ... Company as concerns the class action lawsuit filed in Australia. This amount has been paid and is reflected as an exceptional item in the Group's accounts in FY2013/14. In addition, without admitting any liability, in 2012, 2013 and 2015, SIA Cargo reached settlements with certain of its customers...

  • Page 188
    ... Air Travels Ltd. (collectively, "Petitioners") before the High Court of Kerala, India, principally against the Ministry of Civil Aviation and the Directorate General of Civil Aviation ("DGCA"), the Company, SilkAir and other airlines. The proceedings sought to quash a DGCA order dated 28 July 2011...

  • Page 189
    ... profit or loss 2015 the Group loans and receivables total Assets Long-term investments Other receivables Trade debtors Deposits and other debtors Investments Derivative assets Cash and bank balances Total financial assets Total non-financial assets Total assets liabilities Notes payable Finance...

  • Page 190
    ...) (a) Classification of financial instruments (continued) availablefor-sale financial assets Held-tomaturity financial assets Derivatives used for hedging Financial liabilities at amortised cost 2015 the Company loans and receivables total Assets Long-term investments Other receivables Trade...

  • Page 191
    ... profit or loss 2014 the Group loans and receivables total Assets Long-term investments Other receivables Trade debtors Deposits and other debtors Investments Derivative assets Cash and bank balances Total financial assets Total non-financial assets Total assets liabilities Notes payable Finance...

  • Page 192
    ...) (a) Classification of financial instruments (continued) availablefor-sale financial assets Held-tomaturity financial assets Derivatives used for hedging Financial liabilities at amortised cost 2014 the Company loans and receivables total Assets Long-term investments Other receivables Trade...

  • Page 193
    ... Financial instruments carried at fair value Fair value hierarchy The following table shows an analysis of financial instruments carried at fair value by level of fair value hierarchy: the Group 31 March 2015 31 March 2014 Quoted Quoted prices in Significant prices in Significant active markets...

  • Page 194
    ... carried at other than fair value Long-term investments classified as available-for-sale amounting to $43.3 million (2014: $98.9 million) for the Group and $18.5 million (2014: $18.8 million) for the Company are stated at cost because the fair values cannot be obtained directly from quoted market...

  • Page 195
    ... Financial Risk Management Objectives and Policies (in $ million) The Group operates globally and generates revenue in various currencies. The Group's airline operations carry certain financial and commodity risks, including the effects of changes in jet fuel prices, foreign currency exchange rates...

  • Page 196
    ...the Financial Statements 31 March 2015 38 Financial Risk Management Objectives and Policies (in $ million) (continued) (a) Jet fuel price risk (continued) Sensitivity analysis on outstanding fuel hedging contracts: the Group 31 March 2015 2014 effect on equity the Company 31 March 2015 2014 effect...

  • Page 197
    ... analysis on significant outstanding foreign currency denominated monetary items. If the relevant foreign currency strengthens by 1% against SGD, equity and profit before taxation would change by the same amounts in the opposite direction. Singapore Airlines | Annual Report FY2014/15 | 195

  • Page 198
    ... Financial Statements 31 March 2015 38 Financial Risk Management Objectives and Policies (in $ million) (continued) (c) Interest rate risk The Group's earnings are also affected by changes in interest rates due to the impact such changes have on interest income and expense from short-term deposits...

  • Page 199
    ... rate risk At 31 March 2015, the Group and the Company own investments of $1,250.3 million (2014: $1,313.7 million) and $1,184.4 million (2014: $1,259.6 million) respectively, which are subject to market rate risk. The market risk associated with these investments is the potential loss resulting...

  • Page 200
    ...38 Financial Risk Management Objectives and Policies (in $ million) (continued) (e) liquidity risk At 31 March 2015, the Group has at its disposal, cash and short-term deposits amounting to $5,254.1 million (2014: $4,883.9 million). In addition, the Group has available short-term credit facilities...

  • Page 201
    38 Financial Risk Management Objectives and Policies (in $ million) (continued) (e) liquidity risk (continued) 2014 Within 1 year 1-2 years 2-3 years 3-4 years 4 - 5 More than years 5 years total The Group Notes payable Finance lease commitments Loans Trade and other creditors Derivative financial...

  • Page 202
    ... 2014 the Company outstanding percentage of total balance financial assets 2015 2014 2015 2014 Counterparty profiles By industry: Travel agencies Airlines Financial institutions Others By region: East Asia Europe South West Pacific Americas West Asia and Africa By Moody's credit ratings: Investment...

  • Page 203
    ... changes were made in the objectives, policies or processes relating to the management of the Company's capital structure. the Group 31 March 2015 2014 the Company 31 March 2015 2014 Notes payable Finance lease commitments Loans Total debt Share capital Reserves Total capital Gearing ratio (times...

  • Page 204
    ... Director and key executives of the Company pursuant to the Restricted Share Plan and the Performance Share Plan are as follows: RSP Base Awards aggregate Base awards granted since commencement of rSp to end of financial year under review name of participant Balance as at 1 april 2014 Base awards...

  • Page 205
    ... 31 March 2015 review name of participant Balance as at 1 april 2014 awards granted during the financial year Modification^ Goh Choon Phong Mak Swee Wah Ng Chin Hwee 41,020 16,470 16,470 19,570 7,510 11,270 1,017 408 408 61,607 24,388 28,148 - - - Singapore Airlines | Annual Report FY2014...

  • Page 206
    ... the financial year, 50,090, 79,437 and 26,230 treasury shares were issued to Director and key executives of the Company pursuant to the RSP, time-based RSP and PSP respectively. R2 # ^ * 41 Subsequent Event On 17 April 2015, the Company subscribed to 45% of the equity interest in Airbus Asia...

  • Page 207
    ...way charter of an aircraft and the purchase of admission and hospitality tickets in exchange for hospitality passes, marketing support and SIA tickets. 2. Material Contracts Except as disclosed above and in the financial statements for the financial year ended 31 March 2015, there were no material...

  • Page 208
    ... Total revenue 2014/15 2013/14 Total expenditure 2014/15 2013/14 Operating profit/(loss) 2014/15 2013/14 Profit/(loss) before taxation 2014/15 2013/14 Profit attributable to owners of the Parent 2014/15 2013/14 Earnings per share - Basic 2014/15 2013/14 Earnings per share - Diluted 2014/15 2013...

  • Page 209
    ...-Year Financial Summary of the Group 2014/15 2013/14 2012/13 2011/12 2010/11 Profit and loss account ($ million) Total revenue Total expenditure Operating profit Finance charges Interest income Surplus/(Loss) on disposal of aircraft, spares and spare engines Dividend from long-term investments...

  • Page 210
    ...-Year Financial Summary of the Group 2014/15 2013/14 2012/13 2011/12 2010/11 Cash flow ($ million) Cash flow from operations Internally generated cash flow R1 Capital expenditure Per share data Earnings - basic (cents) Earnings - diluted (cents) Cash earnings ($)R2 Net asset value ($) Share...

  • Page 211
    ... Profit/(Loss) after taxation Capital disbursements R1 Passenger - yield - unit cost - breakeven load factor Operating passenger fleet Aircraft Average age Industry-wide average age Passenger production Destination cities Distance flown Time flown Available seat-km Traffic Passengers carried Revenue...

  • Page 212
    ... age in years (y) and months (m) aircraft type owned Finance operating lease lease total Seats in standard configuration expiry of operating lease 2015/16 2016/17 on firm order on option Singapore Airlines: 777-200A 777-200R 777-200ER 777-200ERR R1 777-300R 777-300ER A380-800 A380-800A...

  • Page 213
    ... Singapore Pte Ltd 49% Eagle Services Asia Private Limited 49% Fuel Accessory Service Technologies Pte Ltd 49% PT JAS Aero-Engineering Services 49% PWA International Limited 49% Safran Electronics Asia Pte Ltd 49% Southern Airports Aircraft Maintenance Services Company Limited 47.1% Pan Asia...

  • Page 214
    ...09 85.82 100.00 Twenty largest shareholders name number of shares %* 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Temasek Holdings (Private) Limited DBS Nominees Pte Ltd Citibank Nominees Singapore Pte Ltd HSBC (Singapore) Nominees Pte Ltd DBSN Services Pte Ltd United Overseas Bank Nominees...

  • Page 215
    ... held by the public Based on the information available to the Company as at 3 June 2015, 43.71% of the issued ordinary shares of the Company are held by the public and, therefore, Rule 723 of the Listing Manual issued by SGX-ST is complied with. Singapore Airlines | Annual Report FY2014/15 | 213

  • Page 216
    ... Share price ($) 2014/15 2013/14 High Low Closing Market value ratios r1 12.91 9.57 11.95 11.45 9.44 10.47 Price/Earnings Price/Book value Price/Cash earnings R2 R1 R2 38.06 1.12 7.24 34.22 0.93 6.23 Based on closing price on 31 March and Group numbers. Cash earnings is defined as profit...

  • Page 217
    ... of Singapore Airlines Limited ("the Company") will be held at Orchard Grand Ballroom, Level 3, Orchard Hotel Singapore, 442 Orchard Road, Singapore 238879 on Thursday, 30 July 2015 at 10.00 a.m. to transact the following business: Ordinary Business 1. To receive and adopt the Directors' Report and...

  • Page 218
    ... Share Plan 2014 respectively. 6.3 That: (a) approval be and is hereby given, for the purposes of Chapter 9 of the Listing Manual ("Chapter 9") of the Singapore Exchange Securities Trading Limited, for the Company, its subsidiaries and associated companies that are "entities at risk" (as that term...

  • Page 219
    ... the purchase price (excluding brokerage, commission, applicable goods and services tax and other related expenses) which shall not exceed, whether pursuant to a market purchase or an off-market purchase, 105% of the Average Closing Price of the Shares; and Singapore Airlines | Annual Report FY2014...

  • Page 220
    ... The Central Depository (Pte) Limited are credited with ordinary shares in the capital of the Company as at 5.00 p.m. on 5 August 2015 will be entitled to the final dividend. The final dividend, if so approved by shareholders, will be paid on 19 August 2015. By Order of the Board Ethel Tan (Mrs...

  • Page 221
    ... Share Plan 2014 respectively. Ordinary Resolution No. 6.3, if passed, will renew the mandate to allow the Company, its subsidiaries and associated companies that are entities at risk (as that term is used in Chapter 9 of the Listing Manual of the Singapore Exchange Securities Trading Limited...

  • Page 222
    ... or proxies must be deposited at the office of the Company's Share Registrar, M & C Services Private Limited, 112 Robinson Road #05-01, Singapore 068902 not less than 48 hours before the time fixed for holding the Meeting. 2. 3. Personal data privacy: By submitting an instrument appointing a proxy...

  • Page 223
    ... 2014) SIA Engineering Company Limited (from 1 April 2015) George Wang Wei Jun aCtInG SenIor vICe preSIDent Lee Lik Hsin CHIeF exeCutIve oFFICer Audit Partner Board Compensation and Industrial relations Committee CHaIrMan mak Keat meng (appointed since FY 2010/11) Information Technology...

  • Page 224
    SINGAPORE AIRlINES MCI (P) 092/05/2015 IS20150000744 Singapore Company Registration Number: 197200078R Airline House, 25 Airline Road, Singapore 819829 CoMpanY SeCretarY Ethel Tan Tel: +65 6541 4030 Fax: +65 6546 7469 Email: [email protected] InveStor relatIonS Tel: +65 6541 4885 Fax: +...