FY2020/21 Full-Year Financial Results Analyst & Media Briefing

We will now move on to the question and answer segment. For this, Mr Goh and Mr Barnes will be joined by Mr Mak Swee Wah, Executive Vice President Operations, Mr Lee Lik Hsin, Executive Vice President Commercial, and Mr Tan Kai Ping, Executive Vice President Finance and Strategy. We have just over 30 minutes and we have many participants. So as always, we would appreciate it if you could please try to limit yourself to one question. If you could also identify yourself before each question, that would be useful. Rishi, over to you for the first question.

Thank you. Once again, as a reminder to ask a question, you will need to press star one on your telephone. To withdraw your question, please press the pound key. We have the first question from the line of Chen Chuanren from Air Transport World. Your line is now open.

Good morning Mr Goh, Siva. I am Chuanren from Air Transport World. Sorry to break the rule. Two quick questions. Firstly, do you think this S$4.3 billion loss is the lowest you can go? I mean, with all the aircraft impairment being identified, do you expect things to go better from the year forward? That is question one and question two, I am very curious. What are your financial obligations for the F1 Grand Prix as title sponsor? In other words, are you still required to pay millions in sponsorship fees should the F1 go ahead in Singapore? Thank you.

I will just take the second question and Kai Ping; you can just address the first one. So, the Grand Prix. I do not think it is a decision that we will need to confront at the moment because whether it is on or not is still a question mark. Let us see what happens on that and we can address that question accordingly. Kai Ping?

Thank you for that question. I think we are certainly working on that basis. For the financial year just passed, FY2021, at the net loss Ievel, a large portion, S$2 billion or so are the non-cash impairment charges. We do not foresee impairment charges of this size as we move forward in the current financial year at this point.

The next question is from the line of James Teo from Bloomberg. Your line is now open.

Hi, good morning everyone. I am James Teo from Bloomberg Intelligence. My question is on aircraft and there are actually two small questions. What are your plans for all the impaired aircraft and does it have anything to do with the Temasek and ST Engineering joint venture on P2F conversion as well as leasing, and what kind of impact could that have even if it is nothing to do with the impaired aircraft? What do you think about a potential cooperation with ST Engineering on that aspect? A second quick question is on sale-and-leaseback. What is the limit in terms of whether you would be open to doing more? Is there a target or maximum in terms of percentage of fleet that could be encumbered? That is all, both on aircraft. Thank you.