3. Reformulate the balance sheets and income statements of each firm for the last four years. State all assumptions. You must use the company’s original financial statements as the basis, and not download the numbers from commercial databases. Submit the reformulated balance sheets and income statements in an appendix.
4. Prepare common-size income statements and balance sheets for each firm for the past three years. Submit them in an appendix.
NB : The firms are Singapore Airlines and Cathay Pacific for the years 2015 to 2018 (see attached financial statements)
Please send the final work as both an excel sheet and a word document
Annual Report FY2016/17 SINGAPORE AIRLINES 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. CELEBRATING 70 YEARS OF EXCELLENCE: The Singapore Airlines Group’s history dates back to 1947 with the maiden flight of Malayan Airways Limited. The airline was later renamed Malaysian Airways Limited, and then Malaysia-Singapore Airlines. In 1972, Malaysia-Singapore Airlines split into Singapore Airlines and Malaysian Airline System. Initially operating a modest fleet of 10 aircraft to 22 cities in 18 countries, Singapore Airlines’ commitment to service excellence, product leadership and network connectivity quickly distinguished it as a world-class international airline group. Today, Singapore Airlines operates a modern passenger fleet of more than 100 aircraft. Together with wholly-owned subsidiaries SilkAir, Scoot, Tiger Airways (which operates as Tigerair) and SIA Cargo, the SIA Group fleet comprises nearly 180 aircraft. The combined passenger network covers 131 destinations in 35 countries. More than 31 million passengers were carried by the SIA Group’s four Singapore-based passenger airlines in the 2016/17 financial year. Singapore Airlines and its subsidiaries today employ more than 25,000 staff, with the world-famous Singapore Girl as an iconic symbol of quality customer care and service. CONTENTS OVERVIEW 2 3-Year Financial Highlights 3 SIA Group Portfolio 4 Statistical Highlights 6 Significant Events STRATEGY 8 A Global Flyer 10 A Premium Full-Service Airline 12 An Innovative Market Leader 14 Celebrating 70 Years of Excellence 16 Our Strategy for the Future 18 Chairman’s Letter to Shareholders 20 Board of Directors PERFORMANCE 22 The Year in Review 24 Network 26 Fleet Management 27 Products and Services 32 People Development 34 Environment 35 Community Engagement 36 Subsidiaries 44 Financial Review 60 Awards GOVERNANCE 62 Statement on Risk Management 63 Corporate Governance Report 75 Membership and Attendance of Singapore Airlines Limited 76 Further Information on Board of Directors FINANCIAL 80 Financial Report 212 Information on Shareholdings 214 Share Price and Turnover 215 Notice of Annual General Meeting IBC Corporate Data OUR JOURNEY CONTINUES... Annual Report FY2016/17 01 3-Year Financial Highlights $11.07 30.5 cents 20 cents NET ASSET VALUE PER SHARE EARNINGS PER SHARE TOTAL DIVIDEND PER SHARE Net asset value per share is computed by dividing equity attributable to owners of the parent by the number of ordinary shares in issue excluding treasury shares. Earnings per share is computed by dividing profit attributable to owners of the parent by the weighted average number of ordinary shares in issue excluding treasury shares. The final dividend of 11 cents per share will be paid on 16 August 2017 to shareholders as at 3 August 2017. Including the interim dividend of 9 cents per share paid on 24 November 2016, the total dividend for the 2016/17 financial year will be 20 cents per share. ($ million) Total Group Revenue 2016/17 2015/16 2014/15 14,869 15,239 15,566 ($ million) Group Operating Profit 2016/17 2015/16 2014/15 623 681 410 ($ million) Group Net Profit 2016/17 2015/16 2014/15 360 804 368 Singapore Airlines02 Singapore Airlines02 Overview SIA Group Portfolio During the year in review, the Singapore Airlines Group continued to expand its global network, leveraging its position as a leader in key markets around the globe. FULL SERVICE LOW COST Singapore Airlines SilkAir Tigerair Scoot 18,990,166 passengers carried in FY2016/17 4,105,576 passengers carried in FY2016/17 5,145,835 passengers carried in FY2016/17 3,357,174 passengers carried in FY2016/17 106 aircraft in fleet 30 aircraft in fleet 23 aircraft in fleet 12 aircraft in fleet 3 new destinations introduced 3 new destinations introduced 12 cities served in China 5 new destinations introduced 70 years of operation in 2017 52 destinations in 14 countries 13 years of operation in 2017 8 additional Dreamliners on firm order Annual Report FY2016/17 03Annual Report FY2016/17 03 Statistical Highlights Financial Statistics R1 n.m. not meaningful R1 Singapore Airlines’ financial year is from 1 April to 31 March. Throughout this report, all figures are in Singapore Dollars, unless otherwise stated. R2 Return on equity holders’ funds is profit attributable to owners of the parent expressed as a percentage of the average equity holders’ funds. R3 Total debt : equity ratio is total debt divided by equity attributable to owners of the parent as at 31 March. R4 Earnings per share (basic) is computed by dividing profit attributable to owners of the parent by the weighted average number of ordinary shares in issue excluding treasury shares. R5 Earnings per share (diluted) is computed by dividing profit attributable to owners of the parent by the weighted average number of ordinary shares in issue excluding treasury shares, adjusted for the dilutive effect on the exercise of all outstanding share options. R6 Net asset value per share is computed by dividing equity attributable to owners of the parent by the number of ordinary shares in issue excluding treasury shares at 31 March. R7 Dividend cover is profit attributable to owners of the parent divided by total dividends. 2016/17 2015/16 % Change The Group Financial Results ($ million) Total revenue 14,868.5 15,238.7 - 2.4 Total expenditure 14,245.7 14,557.5 - 2.1 Operating profit 622.8 681.2 - 8.6 Profit before taxation 518.6 972.4 - 46.7 Profit attributable to owners of the parent 360.4 804.4 - 55.2 Financial Position ($ million) Share capital 1,856.1 1,856.1 – Treasury shares (194.7) (381.5) + 49.0 Capital reserve (147.6) (129.2) - 14.2 Foreign currency translation reserve (123.7) (151.3) + 18.2 Share-based compensation reserve 88.5 123.7 - 28.5 Fair value reserve (234.4) (498.6) + 53.0 General reserve 11,838.8 11,935.5 - 0.8 Equity attributable to owners of the parent 13,083.0 12,754.7 + 2.6 Return on equity holders’ funds (%) R2 2.8 6.4 - 3.6 points Total assets 24,720.0 23,846.6 + 3.7 Total debt 1,567.8 1,347.5 + 16.3 Total debt : equity ratio (times) R3 0.12 0.11 + 0.01 times Value added 4,843.1 5,030.9 - 3.7 Per Share Data Earnings – basic (cents) R4 30.5 69.0 - 55.8 Earnings – diluted (cents) R5 30.3 68.7 - 55.9 Net asset value ($) R6 11.07 10.96 + 1.0 Dividends Interim dividend (cents per share) 9.0 10.0 - 1.0 cents Final dividend (cents per share) 11.0 35.0 - 24.0 cents Dividend cover (times) R7 1.5 1.5 – times The Company Financial Results ($ million) Total revenue 11,094.2 11,686.1 - 5.1 Total expenditure 10,707.8 11,201.0 - 4.4 Operating profit 386.4 485.1 - 20.3 Profit before taxation 579.3 766.2 - 24.4 Profit after taxation 514.0 672.0 - 23.5 Value added 3,550.7 3,661.6 - 3.0 Singapore Airlines04 Singapore Airlines04 Overview Singapore Airlines Revenue passenger-km = Number of passengers carried x distance flown (in km) Available seat-km = Number of available seats x distance flown (in km) Passenger load factor = Revenue passenger-km expressed as a percentage of available seat-km Passenger yield = Passenger revenue from scheduled services divided by revenue passenger-km Passenger unit cost = Operating expenditure (less bellyhold revenue from SIA Cargo) divided by available seat-km Passenger breakeven load factor = Passenger unit cost expressed as a percentage of passenger yield. This is the theoretical load factor at which passenger revenue equates to the operating expenditure (less bellyhold revenue from SIA Cargo) SilkAir Revenue passenger-km = Number of passengers carried x distance flown (in km) Available seat-km = Number of available seats x distance flown (in km) Passenger load factor = Revenue passenger-km expressed as a percentage of available seat-km Passenger yield = Passenger revenue from scheduled services divided by revenue passenger-km Passenger unit cost = Operating expenditure (less cargo and mail revenue) divided by available seat- km Passenger breakeven load factor = Passenger unit cost expressed as a percentage of passenger yield. This is the theoretical load factor at which passenger revenue equates to the operating expenditure (less cargo and mail revenue) Budget Aviation Holdings Revenue passenger-km = Number of passengers carried x distance flown (in km) Available seat-km = Number of available seats x distance flown (in km) Passenger load factor = Revenue passenger-km expressed as a percentage of available seat-km Revenue per revenue seat-km = Passenger revenue from scheduled services divided by revenue passenger-km Cost per available seat-km = Operating expenditure divided by available seat-km Breakeven load factor = Cost per available seat-km expressed as a percentage of revenue per revenue seat-km. This is the theoretical load factor at which passenger revenue equates to the operating expenditure SIA Cargo Cargo load = Cargo and mail load carried (in tonnes) x distance flown (in km) Gross capacity = Cargo capacity production (in tonnes) x distance flown (in km) Cargo load factor = Cargo and mail load (in tonne-km) expressed as a percentage of gross capacity (in tonne-km) Cargo yield = Cargo and mail revenue from scheduled services divided by cargo load (in tonne- km) Cargo unit cost = Operating expenditure (including bellyhold expenditure to Singapore Airlines) divided by gross capacity (in tonne-km) Cargo breakeven load factor = Cargo unit cost expressed as a percentage of cargo yield. This is the theoretical load factor at which cargo revenue equates to the operating expenditure (including bellyhold expenditure to Singapore Airlines) Group Airlines (Passenger) Revenue passenger-km = Number of passengers carried x distance flown (in km) Available seat-km = Number of available seats x distance flown (in km) Passenger load factor = Revenue passenger-km expressed as a percentage of available seat-km GLOSSARY Operating Statistics 2016/17 2015/16 % Change Singapore Airlines Passengers carried (thousand) 18,990 19,029 - 0.2 Revenue passenger-km (million) 92,913.8 94,267.4 - 1.4 Available seat-km (million) 117,662.3 118,366.5 - 0.6 Passenger load factor (%) 79.0 79.6 - 0.6 points Passenger yield (cents/pkm) 10.2 10.6 - 3.8 Passenger unit cost (cents/ask) 8.2 8.5 - 3.5 Passenger breakeven load factor (%) 80.4 80.2 + 0.2 points SilkAir Passengers