FY2022/23 Full-Year Financial Results Analyst & Media Briefing

Thank you,Mr Goh. Before I invite the gentlemen up on stage, we wi ll go through the house rule s . If you are keen to ask a question, just raise your hand and I wi ll come to you. If I could please request, we ha ve quite a lot of people here today and online as well. If you could just keep to one question each, that will be great. J oining Mr Goh and Mr Tan Kai Ping up on stage will be Mr Lee Lik Hsin, wh o i s Executive Vice President Commercial, as well as Mr Mak Swee Wah, who is Executive Vice President Operations. Fir st question, maybe the gentlemen there raising your hand, and then followed by Greg, please. Thank you.

Hi, good morning. Congratulations on this great set of results. I a m Jason from DBS . Two questions from me. F irst ly, SIA is n o t encountering the same aircraft constraints that are preventing airlines in the region from reinstating capacity. Despite this, the pace of capacity addition appears to be quite measured. Could you provide some insi ght into the capacity guidance for the first half of FY 2023/ 24? The s econd question is that unit cost has declined or been largely stable across most cost categories apart from staff cost . C ould you provide some colo ur on why staff cost outpace d the slight increase in total head count to rise above pre -pandemic levels in the second half of FY 2022/ 23? Thank you.

I w ill take the question on capacity guidance. We are reaching approximately 80% of our capacity as of the end of this financial year, which is March 2023. W e intend to continue increas ing our capacity,reaching almost 90% by the end of the new financial year, wh ich is March 2024.

On the q uestion on staff cost, t here are two effects that you may not see in the coming financial year,depending on how we do. One is that a big part of the staff cost increase this year is because of the bonus provision. Our bonus provision for staff is contracted more or les s linearly with the performance of the company. W ith the record performance, you see a corresponding increase in the provision of staff bonus . The other, if you compare with the pandemic years,will be the impact of g overnment grants that were there in the pandemic years,but no longer going forward.

Hello, Greg Waldron from FlightGlobal. C ongrat ulation s on the great performance. My question is regard ing Scoot. What has been the impact on the A320 n eo fleet with the PW1000 issues by Pratt & Whitney ? If there are issues, does that lead to Scoot potentially extending leases on the A3 20 ceo fleet?

Our Scoot CEO is here. Leslie, you can take th at question .

Good morning, Greg, and thank you for the question. First of all, the GTF engine on the A 320neo,based on what our CEO has mentioned, we are able to add a lot of capacity in the past 12 months . This means that we do not face major issues on the GTF, and we are planning to add more capacit y going forward as well. At the moment, we do not plan to extend the lease of the A 320 ceos .We are still planning to retire our whole fleet of A ceos by the end of 2025.

Thank you. W e wi ll go to the two ladies right in front here, and then we wi ll go back the re . Thank you.

Hi, I am Ch en Li n from Reuters. J ust to follow up on the Scoot A320neo s, may we ask how many of those are in the fleet now,and how many are currently grounded for lack of spares ? W hat is Pratt doing to compensate or fix the problem? Our second question is when do you plan to buy back more of the convertible bonds? Thank you.

Currently, we have 15 A320 and A 321neo s .None of them are grounded. All 15 aircraft a re flying, and we expect to take more deliver ies in the coming years to add on to our fleet.

On the q uestion on convertible bonds,we still have 50% of the MCB s, which were for $6.2 billion in total. We are redeeming half of it, as we have announced. There is still 50% remaining. We have no specific plans at this point in time. Obviously, it is dilutive, and we would want to red eem them when we can, but there are no specific plans. It depends on how we perform.

Thank you. Mayuko, please.

Good morning. Thank you. This is Mayuko from Nikkei . You had a record RAS K, but the passenger yield s seem to have gone down. Can I get an explanation why, and how it work s ? F are sseem to be at quite high levels ever since the re opening. Can you give us some guidance ? W ith the mounting capacity by other airlines, you are talking about the competition . H ow does it look like going forward?

I wil l take that question. As we have said, demand is robust in the near term and also across the peak periods of the year, which include the summer and the year - end period. Of course, air fares are a function of demand and supply, and so we would have to continue to observe how much capacity other people are putting in to the market and what that means overall. We always try to be competitive in our offering s, and we do offer attractive discounts periodically across all of our markets including Singapore, so please keep a lookout for those.

Are you talking about yields relative to last year? L ooking at the capacity this year and l ast year, last year we were only operating a very small network . S o that is not representative at all.

Thank you. W e ha ve a few hands up there. T he lady behind V en .

Hi, Naomi from Cirium here . I have a question on your fleet adjustments. Could you give us some insight on the type swap between the 787 -9 and the -10s? Are those due to delivery delays? Are you hoping to switch so that you can get these aircraft faster? R elating to the 737 MAX s, wi th the cancellation of the eight, could you give us some insight on why you cancelled ? Are there plans to replace the capacity from th ese eight to another narrowbody type? Thank you.

We mentioned earlier that,as part of our conversations with the OEMs, we are also looking at how we want to rearrange the deliveries of various aircraft type s, to better match our outlook of how recovery will come. T hat is a part of that. Fr ankly, we do have flexibility in terms o f our own fleet because,as you know, some of our planes are actually on lease . W e have the flexibility, if there are delays, to extend the lease s and so forth. We will make use of all these flexibilities.

Thank you. W e wil l have the three gentlemen here in the front row, starting here.

Hi, good m orning. My name is Raymond from CGS -CIMB. My first question is on the cargo business,where the profits have been sliding quarter - on - quarter for some time now. I woul d like to know what you can do to possibly mitigate that decline given that the market is weak . Is there something else that you can do to slow that down? T he second question is on cost per ASK (CASK) . I a m comparing the fourth quarter with the immediately prece d ing third quarter. I noticed that for SQ, the CASK actually went down by 2% quarter - on -quarter, but for Scoot it went up by about 9% quarter - on -quarter. This is based o n your disclosure. I woul d like to understand why there is a discrepancy there.

I will take the question on cargo. W e cannot affect external conditions and as we have said, and as many people have noted,the external conditions for the cargo market are not great right now. However, we are in a good position to continue to hold our own in the market to capture share because of our very extensive network . A s mentioned, we are the ones w ho have put back the most capacity into the market as compared to other carriers. Also, we have various other strategic pillars in place, including partnerships with key players like DHL,to continue to support our network and also the Singapore hub. Thanks.

Thank you,Raymond for the question. The reason actually is because of Forex. So, if you recall for Q3, we had a rather outsized Forex loss that was partially neutrali s ed in Q4 . The impact on SIA and Scoot is different because SIA is currently temporarily net long in US dollar s, because we raise d US dollar bonds, and we did a couple of sale - and -leasebacks . Now, it is temporary because we are normally net short in US dollars because fuel is in US dollars, aircraft is in US dollars,and so on and so forth. A lot of our expenditure s are in US dollars. W hen that comes about, the US dollar will be utili s ed. We normally b uy US dollars to hedge, but now we are net long in US dollars because of the funds we have raised . W hen the US dollar move d in Q4,strengthened relative to the S ingapore dollar, there is a positive impact on SIA and a negative impact on Scoot. I would encourage you to look at the half. O n a half basis, for the second half of the financial year, the effect more or less neutral ises .

The gentleman beside Raymond, please.

Thank you. Roy from UOB Kay Hian .I have two questions. The first is on the dividend policy. With the company’s strong balance sheet position today, what is SIA ’ s target pay - out ratio going forward? I would like to have a sense of whether this absolute div idend, which was very high last year, is sustainable going forward. The second question is regarding the merger with Air India. I u nderstand it is on track. I think in the media, Air India has said that Air India is on track to turn around in the past financial year. Can SIA provide some colour o rvisibility on Air India’s profit turnaround? Thanks.

On d ividend s, we do not have a published policy . D ividend s is something that the Board will look at based on the financial results, and the decision will be based on the judgment of the B oard at that point in time. Of course, it is the usual thing s com ing into consideration : your balance sheet, your projections o f the need for funds going forward, et c . So that is what it is. India, at this point in time, we are not a shareholder of Air India yet, until the integration takes place, and that will not be until the beginning of next year. So any questions about Air India’s financial s and so forth, you have to direct it to A ir India.

The gentleman there beside Mayuko, followed by Brendan. W e wi ll then take some questions online.

Hello, good morning. Louis from Credit Suisse. Just one question, CEO Mr Goh . Ithink you have been the CEO for 12 o dd years or so now, and I think last month there were some management appointments of your Chief Commercial Officer and Chief Operations Officer. P erhaps you could shed som e light on the leadership transition or succession planning, the timeline,and what we should expect of the G roup ’s strategy after that transition. Thank you.

SIA has always paid a lot of attention in developing our talents and ensuring that we have a strong bench. O ne of our colleagues, Campbell (Wilson), was identified and determined to be the best candidate to take up the CEO position at Air India . This is a testament to how strong our bench is. We will continue to have renewal, and we will continue to expose different members of our management team to different areas . T his is part of the development that we have to ensure that our bench continue s to be strengthened. Thank you.

Brendan, did you have a question?

Hi, good morning. Brendan Sobie, an independent analyst. I h ave two questions. My first question relates to the timeline for 100% capacity restoration and if there is any impact on that from all the delivery delay issues, like with the 777X. Obviously, you have done very well in the first year, being higher than compe titors as you pointed out, but soon you are going to be lagging behind competitors . I was wondering if that is a strategic concern and if you have any opportunity to bring in second - hand aircraft,or do something about that. That is my first question.

I mentioned earlier, yes, because of a delay in the 777 - 9 s, we do have to look at extending some of the leases that we have,or extending the use of some

of the aircraft that we have, particularly the older 7 77 - 300 ER s . Those we determine to be sufficient to mitigate t he deferment of the 777 - 9. If you were to look at the overall capacity and projection, IATA projected that, for Asia -Pacific,things are not going back to pre - C ovid in terms of capacity until . I think we are able to handle that kind of recovery.

Thank you. My other question is about the current outlook .I know you had quite optimistic wording s in the press release about the current quarter, but I was just wonde ring specifically about regional travel within South E ast Asia . T here have been some indications from other airlines,for this regional market, m aybe it i s more of a Scoot market than an SIA market, about some weakening in the month of May already in terms of demand,both load factors and yields, just with competition capacity coming back in. I am wondering if you noticed that at either TR or SQ ?

By regional markets,you mean mainly South East Asia? I suppose that is what you meant. At this point in time,we are still seeing very strong demand on our South East Asia flights, not just SIA but Scoot as well. So, we have no t quite seen any weakening,in the near term at least.

Thank you. We will tak e some questions online right now. Thomas Shum from Reuters Breakingviews. When is Singapore Airlines expected to return to 100% of pre -pandemic capacity? Why are you at 80%? Is it because of staffing issues? H ow do you plan to deal with ticket price inflation?

I will take the question on ticket price inflation, which I have already answered. Ticket prices are a function of demand and supply,and we always strive to be competitively priced in the market.

We have taken proactive steps in hiring new staff. In the sli de earlier, I did not elaborate, but you c an see that we started rehiring cabin crew from February 2022. T hat was before Singapore opened its border s to the rest of the world, and also others opening up to Singapore,because that took place only in April. S ince then, we have recruited about,000 plus new crew. Of course, they have to go through training and all that. A t this point in time,we are recruiting sufficient crew, but they have to go through the training.

Thank you. We have one question from Zheng Yu Rou from Morning s tar .My question is about China’s reopening. Could you give some colour about the expectations around the reopening of China? Are you seeing load factors supported by China travel? Does the limited routes by the Chinese airlines benefit SIA? Are we benefiting from the limited services international?

We are e xtremely excited about the reopening of China. Obviously, it will take some time for everybody in the industry,amongst the stakeholders, to be totally ready. This includes, for example, tour operators,because a large part of Chinese travel is leisure travel through tour operators. And truth be told, that is not ramped up exactly to 1 00% of pre - C ovid level s yet. It is starting to come in and we are optimistic about the full resumption. I a m not sure tha t the Chinese carriers have limited international capacity. You will see Chinese airlines operating to Singapore,just as Singapore Airlines and Sc oot are operating to China.

We have a question from Kaseedit from Citi. CASK ex -fuel is down 9% quarter on quarter. Very impressive. What are the key drivers and how far can C ASK ex -fuel go down?

Ithink I answered that question already, the question Raymond asked.

We have Tim Bacchus from Bloomberg asking . W e understand that fuel hedging gains are difficult to forecast based on the current profile and direction of spot prices. Can you comment on hedging gains of $749 million in FY 2023 / 24, relative to the $ 219 million from FY 2022 / 23? T hat would appear quite challenging these days.

Fuel hedging is a random walk. The s martest people in the world have tried to model it. I would not be able to predict. That is precisely the reason why we hedge, to take out the volatility in the cost of fuel.

Thank you. Questions from the room, please. W e wil l go with Peck Gek, and then we have got some questions at the back.

Good morning, P eck Gek from T he Business Times. SIA has posted record earnings in its 76 -year history. W hat is holding back SIA from redeeming the 50% MCB s, if it has done so well? W hat else does it have to do, for it to redeem 50% MCBs ? F or passenger yields, I think the Nikk ei reporte r was referring to quarter - on -quarter, there was a slight decline in passenger yields. Does it mean that there was slowing recovery ? Would passenger yields and fares ever normali se? What are SIA’s strategies in handling the decline?

Thank you. I will take the question on MCB s . T he decision on MCB s affect s equity, it affects the shape of the balance sheet. T hese are long -term questions, not short - term quest ions. So,we have to move step - by -step and that is exactly what we are doing. Strong performance is really the reason why we are in a position to announce a redemption of 50% of the MCB s 2021. As for the remaining 50% of the MCB s 2021, I have answered the question before. We have no definitive plan at this point. We have to take a very long - term view to come to that decision. Thank you.

W ith regard to yields, firstly, the Q 4 yield s versus the Q 3 yield s movement is not large. Secondly, there is also a seasonal effect. Q 4 being a traditionally weaker quarter than Q 3. Q 3 covers the year -end peak. Q4 is January to March. On the question of whether passenger yields will ever normali s e and what w ould SIA do, I think firstly, pricing and yields are a function of demand and supply . W e cannot control that fully. But everything that our CEO has said in his presentation about how we are positioning ourselves to emerge stronger should provide some confidence that SI A will continue to do well, whatever the external environment.

Thank you. Chuanren, please.

Good morning, Chuanren from Air Transport World. A f ollow -up question on the fleet. Other than mitigating delays, are there any changes in the market that led to this decision, as a consumer in the market? A nother

question is on slots. The third runway in Changi Airport will not be ready until late 2025, 2026. Do you think that might stem your expan sion in the medium - to long -term? Thank you.

I think the question is around the swapping of the 7 8 7 - 9 s to the - 10 s, and the 737 - 8 s . It is completely network driven . T he 787 -10 is a bigger airplane. W e are basically increasing seat count on certain mission s, and the decision on -8 similarly is driven by the network. It is a view on how we think our demand will evolve, and how we think we have to evolve the network. It is an adjustment in the mission.

Sl ot s are obviously an important aspect of our operations. I t is not merely between now and 20 25, 20 26 . It is between now and when T erminal 5 will be ready. In between, really, there is very limited capacity to add . However, it is like Singapore . W e always look at things in advance and do it proactively. A t the moment, we are working very closely with our ecosystem partners, including the airp ort, to look at some projection, to look at what we are expecting, in terms of growth for both SQ and TR . W here can we operate from and how are we going to address it, if there are slots issues in the interim . This ongoing discussion is a very healthy discussion,and we expect that there will be some solutions as a result.

Thank you, next question, please. W e wi ll have the three people there.

M r Lim Hui Jie, CNBC : Hi, I am Hui Jie from CNBC . I wanted to ask on the M orning s tar question for the China outlook . T his is the first full quarter that China has lifted its travel restrictions. I want to ask if SIA has any observations on this quarter. Was there a spike in China bookings to and from China? Is it driven by corporate or leisure travel?

W e are excited about China and as you noted, it is the first quarter that they are open. Things would not have resumed immediately to pre - C ovid levels. Y ou can see that in how we are increasing our capacity back to China. We have not yet increased our capac ity back to China to the pre - C ovid level s .In terms of market segments, I would say it is similar to other markets where borders first started to open. You see demand across all segments,driven by both individual travel as well as corporate travel, with a particular strength in family travel . Thi s is what we call visiting friends and relatives, families needing to travel across the two countries to reunite. That was the case for all the other markets, and we see that in the China market as well.

Hello, t hanks for the presentation. I am Jovi from The Edge Singapore. I have two questions. My first one is about S ustainable A viation F uel (SAF) . Do you have an update on your SAF use following the pilot last year? What are your plans for SAF in the coming year,and what has been the passenger response for the carbon offsets available since June 2021? My second question is that staff costs have doubled year - on -year, to some $ 3 b illion. A re you seeing any stresses on staff count? Y ou mentioned earlier that you have 3,000 staff in training. What are your pilot and cabin crew numbers like compared to pre - C ovid levels? Thanks.

I will take the SAF questions,and Kai Ping will take the other one. Yes, we are looking at going into a contract to purchase more SAF . More details will be

announced after we settle the agreement with the supplier. Carbon offset take - up by passengers, at this moment, I would say the take - up is not strong . We will continue to encourage passengers, but at the end of the day, it will really be up to individual passengers to decide what they want to do.

On t he q uestion on staff cost, I share d just now that year - on - year we see two out sized impact s . O ne is the provision for profit -sharing bonus because of the record profits. Second,is the absence of government grants as we move forward. O ther than that, there is w age inflation. It is not out of line with Singapore ’s wage inflation. In terms of year - on -year, staff headcount at the Group level has increased by 12.3% to support the operation s . W e ended the year with slightly over 24,000 people.

I will just add that if you were to look back in history, you’ll find that SIA as an organi sation has always been very good at managing cost escalation. In fact, as a full -service carrier, we are probably one of the most cost -efficient ones.

Thank you. We will go to V en with a question.

Hi, Ven from The Strai ts Times . A question on Scoot and the decision to buy the Embraer jets. For the longest time, SIA has stuck to Boeing and Airbus . P reviously when I asked management about this, they cited complexity and cost issues. So, they w ere not go ing to other brands, but something has changed. What changed,and can you add colour as to what your plans are ? W here do you plan to deploy these planes, and whether this is something you are going to continue in the future ; looking at other brands as the market develops?

I will provide a high -level response and then get Leslie to elaborate. I think our assessment of what we want to bring in as a fleet type, really depend s on our assessment of whether it is a fleet type that makes sense for the operation s we intend. W e do not have smaller planes than the A320s that Scoot is operating. Frankly, for some of the destinations in our region, which are fast developing, huge poten tial, we do n o t have a viable pla ne . The question is whether those markets are there, a nd whether we think they are commercially viable . I n this case, we do think so.

G oing back to what CEO has mentioned, we believe that, from a Scoot perspective, the South East Asian market is really a market that we can continue to grow quite extensively. If you look at the South East Asian market, there are a lot of secondary cities where our current A320 neo s, which has a seat capacity of 186, would be too large for many of these second - and third -tier cities. W e have done a very robust RFP and we look ed at which aircraft type will fit our mission, more from a commercial perspective as well as an operational perspective . W e decided that Embraer with the E 190 - E2 is the best fit for us. As to where we are deploying this aircraft, definitely within the region . T his aircraft can fly up to five hours. It will be deployed both on existi ng destinations th at we currently fly to, because we can add frequency,as well as new destinations within the region. Once we decide on the new destinations, we will definitely inform the trade and media. We are looking at receiving the first aircraft some t ime in March 2024 . S o slightly before that, we should be able to announce some of the destinations that we will be deploying this aircraft type to . Thank you.

I will just add that in general, even if we evaluate certain propositions and they are not viable at a point in time, it does n o t mean that we wi ll give up on that proposition. It just means that we wi ll review them again. Economies do not stay still, they develop. What used to be not so feasible in the past because the economic activities do n o tsupport it, could become viable as the economies grow.

Thank you. The lady over there, and then one online question . W e will have to end soon after that.

T hanks for the presentation. This is Ezien from OC BC C redit Research. I have two questions. The first one is on the newer growth initiatives such as your KrisFlyer and Kris Shop. Is this currently par ked under SIA ’s revenues? Are you able to share more colo ur, s ay for example, what is the percentage contribution to operating profit, or the kind of growth rates? T he second one is on your hedging slide . Should I add the MOPS and the Brent percentage to get a total perc entage of the f uel requirement that has been h edge d? Thanks.

I wi ll take the questions on the various new businesses. At this point in time, we do not announce the P&L impact o findividual businesses. Some of them are being tracked internally, but we do n o t make thos e information public at this point in time. You can see that we are sharing more information, for example, on our KrisFlyer revenue. In my presentation, it was more t han $ 900 million last year, which is quite a substantial number.

S pecifically to the hedging slide, y es, you add the two columns. If I can g ive an example, just to make sure we are clear,between Q2 and Q4 of FY 20 23 / 24, we hedged at 39% of the expected volume, 10% is in Brent, and 29% is in MOPS.

We have a question online from S hawn Ng from JP Morgan. H ow is corporate travel trending, year - to - date?

Co rporate travel as a whole has recovered nicely. It is not yet at the pre - pandemic level. But it is far, far above some of the very, very pessimistic projections that people had at the start of C ovid, where everybody was supposed to only have online meetings.

Thank you,Lik Hsin. Are there any other questions from anyone?

L ewis from Lianhe Zaobao . Can you shed some light on the seat mix? Do you plan to invest more in certain class es of seats? Thanks .

W e always take the opportuni ty to improve our product s for our customers. An e xample of that is the seat retrofit that we had for our A380s. At this point in time, all the A380s that we operate are equipped with the latest seat products, which I would say have been very much welcomed by our customers. We wi ll continue to do that . I mentioned earlier that we have developed new seats, customi s ed seats, for our 777 - 9 planes. Based on what we can see in the market and based on what we have designed, we believe that those seats will be industry -leading when they are launched with the launch of the 777 - 9.

Can I check if SIA has encountered any ground handling issues, for example, de lays in baggage handling?

B aggage, because of the well -known issues that ground handlers have all around the world, incidents of mishandling ha ve gone up . W e have a dedicated team and taskforce looking into this, and I am glad to share that in recent months, that has improved significantly, because of the pr oactive steps that our chaps have taken.

Thank you everyone for coming down this year. Thank you for your time and we wi ll see you in six months’ time. Have a great day everyone. Thank you.