Annual report complete by meg tuddenham

Skywest Skywest Airlines Limited 510 Thomson Road #12-04 SLF Building Singapore 298135 Ph: 65 6252 2077 Fax: 65 6252 5158 www.skywest.com.sg

Skywest Airlines (Australia) Pty Ltd Domestic Terminal, Perth Airport Western Australia 6105 Ph: 61 8 9478 9999 Fax: 61 8 9478 9928 Bookings: 1300 66 00 88 www.skywest.com.au

Skywest Annual Report

2013

Contents

Page

Destination

Page

Destination

0 0 2 Chairmanâ&#x20AC;&#x2122;s Statement

0 1 8 2013 Route Map

0 0 4 Board of Directorâ&#x20AC;&#x2122;s

0 2 0 Senior Management

0 0 6 Company Profile

0 2 2 Skywest Operations

0 0 7 2013 Highlights

0 2 6 Community Interaction

0 0 9 Goverance Statement

028

Australian Regional Airline Network(ARAN)

0 1 6 Share Price Performance

038

Western Australian Mining Industry

0 1 6 Dividends Global Payments

0 4 2 2013 Financial Report

Skywest 03

Chairman’s Statement Dear Fellow Shareholders,

was operating six ATR-72 aircraft under

operating cash flow and an investment in

dividend policy announced on the 24th of

acquire more aircraft to meet growing

the ATR-72 aircraft. As Virgin Australia is

On behalf of your Board of Directors,

the ARAN wet lease agreement and

the form of convertible debt from Virgin

March 2011 specifying a minimum payout

charter demand. The Company also

one of the Company’s largest customers,

present our consolidated financial

had operated more than 6,200 ARAN

Australia. The Companyalso increased

ratio of 25%. The proposed dividend

entered one of its owned F100 aircraft

any commercial dispute or cessation of

results for Skywest Airlines Ltd and its

flights. The ARAN provides Skywest

its aircraft ownership by purchasing

record date and payment timetable will

into revenue service in September.

business with Virgin Australia has more

subsidiaries for the year ended 30 June

with significant growth, diversification

four F100 aircraft (three of which were

be announced in due course, along with

Skywest also has an additional owned

potential to impact the Company than

2012 (the “Current Period”).

outside of Western Australia and

already being leased to Skywest) which

the Notice of the Company’s forthcoming

F100 that could be brought into service

other customer relations. While the

revenues uncorrelated with the resources

will provide future savings on aircraft

Annual General Meeting (“AGM”), which is

Fiscal Year 2012 Results

sector. During the second half of the

rentals. As of 30 June 2012, 14 of the

anticipated to be held in November 2013.

The Company announces that the Group

fiscal year, the Australian Competition

20 aircraft in the non-ARAN fleet were

revenue for the Current Period has

and Consumer Commission (“ACCC”)

owned by Skywest. Total cross-hire

increased by 26% to S$303m

granted authorisation for a corporate

expenses for the fiscal year were S$10m.

(2011: S$240m) with earnings before

alliance between Skywest and Virgin

interest, taxation, depreciation,

to offer bundled services. Separately,

amortization and aircraft rentals (EBITDAR) increasing by 27% to

in due course.

ATR-72 fleet is being established in Australia, there are risks of regulatory

Risks

or CASA-related issues. There could be

Current Trading and outlook

Risks faced by the Group’s business

growth risk and risks surrounding the

The ARAN business continues to expand.

remain the normal commercial risks and

Company’s on-going implementation

Skywest treats its charter customers

The eighth ATR-72 aircraft has already

typical airline industry related risks. The

of the burgeoning regional network,

well and will honour its obligations to

joined the fleet and the ATR fleet is

Group appears to be facing increased

Virgin Australia’s requests of Skywest

the Company received net proceeds of

provide superior customer service to its

expected to double during fiscal year

competition in the RPT business and

to deliver beyond the scope of the

A$8.3 million from an investment in

customers. When Skywest’s fleet has not

2014 to reach 12 ATR-72 aircraft by June

in the charter business as the overall

ARAN and the still evolving corporate

S$66m (2011: S$52m). Current period

the Company by Virgin Australia in the

expanded fast enough to meet customer

2014. Operationally, ARAN outperformed

size of the resources sector client base

alliance between Skywest and Virgin

consolidated net profit after tax of

Current Period which if converted to

requirements or aircraft have not been

its competitor again in July and August

continue to expand. Presently, the Group

Australia. Each of these risks, either

S$7.1m (2011: S$9.8m) and earnings per

equity, would represent an A$11 million

available due to maintenance schedules,

in on-time departures and arrivals. The

is experiencing the impact of significant

individually or in combination, may

share of S$3.50 cents (2011: S$4.89 cents)

investment for 10% of the ordinary shares

the Company has cross-hired competitor

Company’s charter business is focused

rapid changes in exchange rate and fuel

have a material adverse effect on the

declined 28% compared to last year. Fuel

of the Company on a fully diluted basis.

aircraft. In the Current Period,

on profitable growth. All cross-hiring

costs. These two factors still represent a

Company and the Group. I would like

costs remain significant and volatile.

Skywest’s Regular Passenger Transport

Skywest spent approximately S$43m on

stopped in June. Skywest expects to

significant risk to the business. Australian

to take this opportunity to thank you,

During the year fuel costs increased

(RPT) business responded to competition

engineering and maintenance (including

continue expanding the charter business

domestic fuel prices, when combined with

as the shareholders, for your continued

22% or S$13m to $69m. The Company

on certain routes by reducing capacity

capital expenditures) and conducted

in response to customer requests for

a lowering in the value of the Australian

support during this exciting period in the

generated a return on equity of 9.5%

which resulted in lower revenue and

heavy maintenance on ten aircraft. This

additional contracts and ad hoc flights.

dollar, cause increased overall costs

Company’s operations and look forward

in the Current Period.

slightly lower load factors. Growth

S$43m investment is intended to increase

However, charter contract commitments

to the Airline’s operations. The Group

to keeping you informed on the progress

in Skywest’s charter business more

fleet reliability and improve on

will be closely aligned with fleet

does attempt to mitigate changes in the

of the Group. In due course, the Company

Fiscal Year 2012 Review

than offset certain declines in the RPT

time performance.

availability to minimize cross-hiring.

dollar and fuel costs by way of hedging,

will publish its Annual Report and Notice

Skywest began operations under the

business. Charter grew in revenue and

Skywest has implemented schedule

however, rapid and massive changes

for the forthcoming Annual General

Australian Regional Airline Network

flight hours by 30% and 25%, respectively.

A Dividend Consistent with Policy

changes, added a double daily service to

can quickly impact the finances of the

Meeting. Accompanying documents will

(ARAN) wet lease agreement with

Skywest also signed its first charter

The Board recognises its responsibility to

Kalgoorlie in July and enhanced revenue

Group with significant consequences.

also be accessible to shareholders on the

Virgin Australia in October 2011. The

contracts with Bechtel / Chevron

reward shareholders as the owners of the

management systems to optimise the

The Company is undergoing a period

Company’s website.

establishment of the ARAN required

for its Wheatstone LNG project. In

Company and is therefore recommending

RPT network. Skywest has identified firm

of rapid growth, and therefore faces

management to invest significant time,

February 2012, new daily return trip RPT

that shareholders receive an increased

order positions for new ATR-72 aircraft

business execution risks associated with

effort and money. By March 2012, ARAN

services to Derby began. The Company

final dividend payment of 1.29 Singapore

that would allow an increase in the fleet

that growth. New risks faced by Skywest

outperformed its competition for both

strengthened its capital structure during

cents per share. This represents a 5%

by 23% to 32 aircraft by 30 June 2013.

relate to its relationship with Virgin

on-time arrivals and departures and has

the fiscal year and ended the year with a

increase compared to the prior period.

In addition to the ATR-72 deliveries to

Australia through the ARAN, namely the

maintained that position each month

significantly higher cash balance of S$25m

The proposed dividend represents a 38%

serve the ARAN network, the Company

Company’s concentration of revenue and

since then. By 30 June 2012, Skywest

(2011: S$10m) as the result of improved

payout ratio, which is consistent with the

continues to explore opportunities to

specific operating risks associated with

Jeff Chatfield, Executive Chairman, Singapore September 2012

John Jost

Jeff Chatfield EXECUTIVE CHAIRMAN OF THE GROUP

Relevant background summary:

NON Executive Director

listed public companies and 26 private

Avation PLC (LSE: AVAP); • Group Executive Chairman of Skywest

companies. Jeff Chatfield holds both a

Airlines Ltd (AIM: SKYW, ASX: SXR);

Masters Degree and a Bachelors Degree

• Chairman of Capital Lease Aviation PLC

from the University of Western Australia

(AIM: CLA);

from which he graduated to the top of

• Graduate of the AICD Company Director’s

the class. He has extensive experience

Course (Diploma) and a member of

managing or owning a number of

both the Singapore and Australian

successful businesses both private and

Institutes of Company Directors.

Mr Jost is a highly successful entrepreneurial investor. John is a graduate of Melbourne University Law

Gold Ltd; • Former Chief Political Correspondent to the Age Newspaper; • Owned a regional radio network;

business and broadcasting career in

• Publications and New projects manager

a variety of industries over the last four decades.

for David Syme Ltd; • Television presenter of the highly acclaimed 7.30 Report on

Relevant background summary: Skywest Airlines Ltd;

operation in Singapore and in Perth.

Magazine in Australia;

School and has pursued this with a broad

• A director and founding investor in

publicly held. Mr Chatfield has bases of

• Led the team that designed BRW • Past Chairman of Beaconsfield

• Chairman of aircraft leasing company Mr Chatfield is chairman of three

Skywest 05

Board of Director’s

• A long-standing resources sector investor;

ABC television; and • Investor and director in the environmentally focussed company Econompost Ltd.

Seah Kian Peng Non Executive Director

• Fellow of the Singapore Chartered

Mr Seah is a successful and prominent

• Achieved first class honors in the

Institute of Marketing;

Ron Altkenhead (JP) Non Executive Director

Bachelor of Building degree at the

Mr Altkenhead has significant private and

and also a noteable public figure. Mr Seah

University of New South;

public sector experience over many years.

has worked in both the public and private

• Completed the Advanced

community organisations in Singapore.

with several community and sporting

Business School.;

organizations in Western Australia.

Relevant background summary:

member of Singtel, Singapore’s largest

• A Member of Parliament of the Republic

public company by market

of Singapore since 2006; • Deputy Speaker of the Singapore Parliament since 2011; • CEO of NTUC Fairprice Cooperative

He has also held committee positions

Management Programme at Harvard • Formerly a board and audit committee

capitalisation; and • Served as an officer at the Singapore Armed Forces during his national service days and in his reserve

Limited - leading food retailer in

appointment, was the chief logistics

Singapore with a group annual turnover

officer at an Singapore Armed

of US$2b;

Forces Brigade.

• Past Chairman of the Port of Fremantle Western Australia;

leader in the Asian business community

sectors and also serves in many public and

Relevant background summary:

• Past Chairman of the Board of the Central Wheatbelt of Western Australia Business Enterprise Centre; • Membership as a Graduate and Fellow of the Australian Institute of the Company Directors (Australia).

Skywest 07

Company Profile

2013 Highlights The 7th consecutive year of profits with an

The results for the Group’s full financial

EBITDAR of SGD 66m and an NPAT of SGD$7m.

year ended 30 June 2013, based on the

• Fleet expanded to 26 aircraft, an increase

unaudited Financial Statements reported pursuant to International Financial

of 37% from the 2011 financial year. • 26% increase in revenues to SGD 303m -

Reporting Standards “IFRS” and reported in Singapore Dollars “SGD” or “S$”

up from SGD 240m in 2012.

Each year, Skywest flies approximately

Skywest’s core business is to provide

360,000 Regular Passenger Travel (RPT)

scheduled passenger services within

passengers providing an essential link

regional Western Australia, plus interstate

business, providing over 6,200 flights with

international shareholders, additional

for regional communities, tourists and

and international services to Darwin in the

six aircraft.

columns are included to denote an

businesses. Skywest connects each of the

Northern Territory, Melbourne in Victoria,

regions across a total of 25 RPT and charter

and Denpasar in Bali. The Airline also

destinations. The Airline caters for regional

provides both regular and ad hoc charters

Western Australians, international and

for customers, with a focus on providing

domestic tourists, corporate travellers and

value added services not available to

fly-in fly-out mining staff.

regular charter operators. The Airline also

Including RPT, Charter and ‘fly-in, fly-out”,

operates in the air freight market.

the total number of persons carried by

The Airline holds a high capacity Air

Skywest in the 2010-2011 financial year was

Operator’s Certificate that allows the

over 810,000.

Airline to operate regular public transport

Skywest Airlines was originally formed as

services domestically and charter

Carnarvon Air Taxis in 1963. The journey

operations throughout the world. The

over the past four decades has seen it

certificate is valid for Fokker 50, Fokker

develop from humble beginnings, through

100, A320 and ATR operations and covers

to incorporation as part of Ansett, to

the maintenance of the fleet.

ultimately becoming a subsidiary of the company.

equivalent value in Pounds Sterling “GBP”

• A 5% increase in proposed unfranked

and Australian Dollars “AUD”):

Dividend of 1.29 (Singapore cents) per share. • Strengthened capital structure to a cash position of SGD 25m at 30 June 2013.

Audided

GBP Equivalent(I)

AUD Equivalent(II)

In SGD

In GBP

In AUD

Revenue from ordinary activities

$ 303 316 386

$ 151 931 178

$ 233 401 959

EBITDAR (earnings before interest, tax, depreciation and aircraft rentals)

$ 66 194 179

$ 33 156 664

$ 50 936 421

Net profit after income tax

$ 7 117 108

$ 3 564 959

$ 5 476 615

Profit attributable to shareholders

$ 7 117 108

$ 3 564 959

$ 5 476 615

Basic earnings per share

$ 3. 50

$ 1. 75

$ 2. 69

Proposed Final Dividend per share (III)

$ 1. 29

IV.

38 %

N.A.

Consolidated 12 months ended 30 June 2013

Dividend Payout Ratio

Skywest’s core business is to provide scheduled passenger services within regional Western Australia, plus interstate and international services to Darwin in the Northern Territory, Melbourne in Victoria, and Denpasar in Bali.

are as follows (for the convenience of

• Commenced Virgin Australia ARAN

I. In this table, the applicable exchange rate between SGD and GBP was taken to be the average exchange rate of 1: 0.5009 which was used in the presentation of the accounts. II. In this table, the applicable exchange rate between SGD and AUD was taken to be the average exchange rate of 1: 0.7695 which was used in the presentation of the accounts. III. The timetable and exchange rate for the payment of the proposed final dividend will be announced when, and if payment of the dividend is approved by shareholders. IV. The proposed dividend payout to investors in GBP and AUD will be calculated at the time of the upcoming 2012 AGM.

Skywest 18

Share Price Performance

2013 Route Map 0.440

Darwin Bali

0.400

Argyle

0.360

Kunnunurra

0.320

Derby Broome

The Granites

0.280 Port Headland

0.240

Karratha Barimunya Onslow

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Source: Australian Securites Exchange (ASX) September 2012

SRX

West Angelas

Sep

Capital Management Program

Shareholders already registered with

The Company maintains a capital

Computershare wishing to use the service

management program with the purpose of

will be able to enrol and request a

increasing the asset value per share and a

foreign payment online by visiting the

high return on equity. The Company may

Computershare Investor Centre at:

from time to time, subject to shareholder

www.uk.computershare.com/Investor (for

approval, buy back its own shares or issue

UK domiciled shares) or

new shares.

www.investorcentre.com (for Australian

Brockman Brockman

or alternatively shareholders can contact

Through its external share registry

Computershare to request a paper

Computershare, and by prior arrangement,

registration form be sent to them.

shareholders may be eligible to receive dividends direct to their nominated bank account in the local currency of their country subject to certain terms and conditions.

Newman Coondewanna

Exmouth

Carnarvon

Geraldton

domiciled shares) Dividends Global Payments Service

Paraburdoo

Windarling

Kalgoorlie

Melbourne

Perth Busselton

Ravensthorpe

Albany

Esperance Charter Services RPT Services

Community Interaction

Skywest 26

Skywest Operations Background

flies to Bali, Indonesia from Geraldton,

The continuing resources activity

Skywest Airlines takes pride in supporting

The Skywest marketing team also manages

The award winning Skywest Airlines has

Broome and Port Hedland. Skywest is

in Australia has led to significant

many events and causes throughout

the subscription list for the online Skywest

proudly been meeting the transport needs

continually examining opportunities to

opportunities for Skywest to grow its

Western Australia. From the Arts to

E-Newsletter. Generated via e-mail the

of Western Australians for almost 50 years.

expand our destination network.

flyin- fly-out contract work. There are

Regional Sporting groups, we like to help

newsletter offers our loyal subscribers last

over $180 billion in resource projects

out where we can.

minute & special fare opportunities and the

It is one of Australia’s largest, oldest and most successful regional airlines. Each

Charter Services

planned or underway in the state of

year, Skywest flies approximately 300,000

Skywest has significant capacity to

Western Australia.

Skywest is actively involved in a wide

new routes and schedules, as well as latest

RPT passengers, covering 16 destinations

provide regular and ad hoc charter

Many of these projects will involve

variety of regional community programs,

updates on Skywest‘s community programs

and providing an essential link for

services for organisations with ‘fly-in,

contract charter flying to supply the

projects and charities. We are

and support.

regional communities, tourists and

fly-out’ (FIFO) requirements. With a fleet

mines/projects with human resources.

businesses. The Airline caters to regional

of Fokker 50’s (holding 46 passengers),

In addition to new charter contracts,

essential support in assisting thousands of

Skywest Airlines has been a proud and

Western Australians, international and

Fokker 100 Jets (holding 100 passengers)

expansion of existing contracts continues,

Western Australians.

active supporter of Channel 7’s Telethon

domestic tourists; corporate travellers

and an Airbus A320 (holding 162

as many of the resource projects move

andfly-in-fly-out mining staff. Including

passengers), Skywest can easily cater

from planning/exploration to construction

We are strong supporters of local events

introduced the ‘Change for Kids’ program

RPT, Charter and “fly-In, flyout” the total

to the needs of its charter customers.

and production phases. Continual focus

and fundraisers in our current regional

on all its flights in 2010.

number of persons carried by Skywest

Destinations and flight scheduling can

on optimization of revenue through load

ports including Albany, Broome, Geraldton,

last year was approximately 800,000.

be tailored to suit, with operations into

factors and yield remains a priority

Esperance, Exmouth, Kalgoorlie, Karratha

Every Skywest passenger has the

Skywest Airlines was originally formed

unsealed runways possible with Fokker

for Skywest.

and Kununurra as well as our continuing

opportunity to donate to Telethon by

as Carnarvon Air Taxis in 1963. The

50 aircraft. During the year, Skywest

supportive presence in ports such as

placing change in special envelopes

journey over the past decades has seen it

continued “flyin, fly-out” services for

Fuel costs

Carnarvon, Kalbarri and Monkey Mia.

provided on board, with every cent

develop from humble beginnings, through

a number of key Australian resource

The Company is exposed to global

to incorporation as part of Ansett, to

companies, including BHP Billiton, Rio

movements in fuel costs. To mitigate the

As well as evaluating many local

is also a major supporter of the Constable

ultimately becoming a subsidiary of

Tinto, Chevron/Bechtel, Argyle and

impact of these costs the Group maintains

sponsorship opportunities, the Skywest

Care Safety Foundation, Association for

the Company.

others. Skywest flies the leading players

a three pronged strategy in respect to

marketing team supports our corporate

the Blind (Guide Dogs WA), Netball WA, Perth

in the resource business.

fuel costs. The airline has a rise and fall

sales operation and drives RPT sales

International Arts Festival & the Black Swan Theatre.

Skywest Business

opportunity to be first in the know about

proud that our contribution provides

and its beneficiaries since 2009. Skywest

collected going towards Telethon. Skywest

policy in respect to charter contracts

through innovative eye-catching advertising

Skywest’s core business is to provide

Growth Opportunities

where changes in the aviation fuel price

and clever promotions.

scheduled passenger services within

The key growth opportunities for the

are passed on to end customers. In

regional Western Australia and Darwin,

business continue to be:

respect to RPT the airline maintains a fuel

in the Northern Territory. The Airline

• organic growth of the ARAN fleet;

surcharge policy. The Airline also operates

also provides both regular and ad hoc

• increased resource charter services;

a fuel hedging policy using financial

charters for customers.

• increased services and frequency to

counterparties. In the fiscal year 2012 the

existing routes (RPT); Passenger Services As part of its regular passenger service (RPT), Skywest flies to 16 destinations across Western Australia, the Northern Territory and to Melbourne. Skywest also

• increased load factors and yield on existing routes; • growth of existing routes into larger aircraft; • new RPT routes.

Group fuel spend was SGD 68.6m. For the period ended 30 June 2011 the spend was SGD 56.0m.

Skywest is actively involved in a wide variety of regional community programs, projects and charities.

Skywest 41 Skywestâ&#x20AC;&#x2122;s new terminal at T2, Perth Airport

Skywest 43

Director’s Report The directors are pleased to present their

Directors of the Company

Directors’ interests in shares and

Directors’ contractual benefits

Share options

Options outstanding under the Scheme

report to the members together with the

The directors of the Company in office

debentures

Except as disclosed in this report, since

The Warrant Share Option scheme (the

as at the end of the reporting period

audited consolidated financial statements

at the date of this report are:

The following directors, according to the

the end of the previous financial year,

“Scheme”) was authorised by the members

are as follows:

of Skywest Airlines Ltd. (the “Company)

• Robert Jeffries Chatfield

no director of the Company has received

of the Company on 15 May 2006 and

and subsidiaries (collectively, the “Group)

• Seah Klan Peng

required to be kept under Section 164 of

or become entitled to receive a benefit

is administrated by the

and the statement of financial position

• John Leonard Jost

the Singapore Companies Act, Chapter 50,

by reason of a contract made by the

Remuneration Committee.

and statement of changes in equity of the

• Ronald Lewis Altkenhead

an interest in shares and share options of

Company or a related corporation

Company for the financial year ended 30

the Company and related corporations as

June 2012.

stated below: Direct Interest Name of Director

At the beggining of the financial year

Number of shares covered by the options

Deemed Interest

At the end of the financial year

The Company

At the beggining of the financial year

At the end of the financial year

Ordinary Shares

Date of Grant

Robert Jeffries Chatfield

2 400 100

29 720 855

Seah Klan Peng

1 350 000

1 550 000

27 250

3 975 412

100 000

John Leonard Jost Ronald Lewis Altkenhead

with the director.

31 720 855

No director who held office at the end of

The following warrants are granted to the

financial year had interests in shares, share

Directors to subscribe for ordinary shares

options, warrants or debentures of the

which are outstanding at the end of the

Company, or of related corporations, either

reporting period:

Balance at begging of year or later date of grant

Lapsed

Exercised

Balance at end of year

Excercise price (pence)

Expiry date

18/11/2010

2 600 000

(2 600 000)

10. 25

17/11/2012

27/11/2011

2 700 000

23. 50

26/11/2013

12/12/2012

3 900 000

25. 78

11/12/2014

17/02/2013

1 200 000

25. 78

01/01/2015

10 400 000

(2 600 000)

7 800 000

at the beginning of the financial year, or at the end of the financial year. Direct Interest Name of Director which warrants are granted

At the beggining of the financial year

Deemed Interest

At the end of the financial year

At the beggining of the financial year

At the end of the financial year

Seah Klan Peng John Leonard Jost Ronald Lewis Altkenhead

(b) no shares issued by virtue of any exercise of option to take up

financial year, there were:

unissued shares of the Company or its subsidiaries; and

(a) no options granted by the Company or its subsidiary companies to

any person to take up unissued shares of the Company and its subsidiaries;

The Company Robert Jeffries Chatfield

With the exception of the options referred as above, during the

4 000 000

5 000 000

400 000

500 000

400 000

700 000

200 000

400 000

Skywest 45

Director’s Report Director’s Remuneration

Auditors Ernst & Young Australia have expressed their willingness to accept reappointment as auditors.

Year ended 30 June 2013

Year ended 30 June 2012

Fees and Salaries $

Benifits $

Fees and Salaries $

Benifits $

504 528

633 256

408 280

573 290

Seah Kian Peng

60 000

32 999

60 000

29 334

John Leonard Jost

60 000

32 999

60 000

58 667

60 000

32 999

60 000

14 667

684 528

732 253

588 280

675 958

Fees, Salaries and Benifits Executive

Robert Jeffries Chatfield Non -Executive

Ronald Lewis Altkenhead

On behalf of the board of Directors,

Robert Jeffries Chatfield Director

Director’s meetings The number of meetings of directors (including meetings of committees of directors) held during the year and the number

Ronald Lewis Altkenhead

of meetings attended by the directors were as follows:

Director

Director’s Meetings

Audit Commitee

Remuneration Commitee

Nomination Commitee Singapore

Robert Jeffries Chatfield

Seah Kian Peng

John Leonard Jost

Number of Meetings held Number of Meetings attended

Ronald Lewis Altkenhead

* There were no physical meetings held during the financial year. Related matters were reviewed and approved by respective committees via circular resolutions

27 September 2012

For the financial year ended in 30 June 2013 (Expressed in Singapore Dollars) Note

2013 $

As in June 30 2013 (expressed in Singapore Dollars)

303 316 386

239 910 036

Other Income

6 684 236

2 424 079

Airport operating costs (excluding fuel costs)

(35 086 296)

(35 919 376)

Fuel Costs

(68 638 059)

(56 044 417)

Aircraft lease rental and hire charges

(35 430 930)

(18 924 001)

(88 828 822)

(60 502 807)

Sales and Marketing Costs

(3 696 577)

(4 944 585)

Engineering and maintenance costs

(24 694 081)

(21 631 229)

Office and General Adminstration costs

(9 764 275)

(8 984 409)

(21 544 632)

(18 775 787)

(13 098 360)

(2 304 205)

Depreciation of property, plant and equipment

Other Expenses

Group

2012 $

Revenue

Employee Benefits

Skywest 47

Financial Position

Comprehensive Income

Note

2013 $

Company 2012 $

2013 $

2012 $

18 039

ASSETS Non - Current Assests 9

82 685 163

62 782 427

3 617

Intangible Assets

17 189 507

Subsidiaries

13 054 802

13 054 801

Other Receivables

6 041 527

3 061 547

Prepayments

3 519 639

4 769 019

Property, plant and equipment

109 435 836

87 802 500

13 057 969

13 072 840

Current Assets Inventories

5 126 307

5 128 926

Trade and other Receivables

41 120 979

31 820 245

36 889 914

33 832 401 50 943

Finance costs

(2 492 899)

(746 632)

Prepayments

5 244 649

6 896 885

48 370

Profit before Tax

6 725 718

13 556 667

Other Investments

342 346

466 333

Income Tax Benefit/(expense)

391 390

(3 707 463)

Cash and Cash equivalents

24 727 772

9 966 329

15 595 911

2 357 193

76 562 053

54 278 718

52 534 195

36 240 537

7 117 108

9 849 204

185 997 889

142 081 218

65 592 164

49 313 377

9 837 206

6 628 680

6 742 440

3 130 843

257 128

746 471

Profit for the year attributable to owners of the Company

Other comprehensive income Gain/(loss) on cash flow hedges Foreign Currency Translation

Total Assets

EQUITY AND LIABILITIES

61 310

(579 275)

Current Liabilites

(606 912)

3 267 536

Provisions

Income Tax Payable

Other comprehensive income for the year, net of tax Total comprehensive income for the year to owners of the Company

(545 602)

6 571 506

2 688 261

12 537 465

Earnings per share

Borrowings

7 103 428

1 240 017

Trade and other Payables

45 098 289

30 458 047

1 327 862

118 707

Revenue received in Advanced

10 320 843

12 507 276

Finance Lease Liabilities

107 264

367 470

Derivative Financial Instruments

739 952

827 535

81 544 404

55 159 868

1 584 990

865 178

(4 982 351)

(881 150)

50 949 205

- Basic (in cents) - Diluted (in cents) The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

Net Current (liabilities)/Assets

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

As in June 30 2013 (expressed in Singapore Dollars)

For the financial year ended in 30 June 2013 (Expressed in Singapore Dollars)

Group Note

2013 $

Company 2012 $

2013 $

2012 $

Non- Current liabilities Provisions

Skywest 49

Cash Flows

Financial Position

Note

2013 $

2012 $

Cash Flows from Financing Activities 17

665 154

1 106 736

Borrowings

9 825 847

2 665 269

Derivative Financial Instruments

1 177 377

Other Payables

3 636 870

Finance Lease Liabilities

2 573 849

Deferred Tax Liabilities

Total Liabilities Net Assets

7 676 859

1 177 377

933 988

7 542 770

11 917 822

25 421 876

16 623 815

8 853 236

106 966 271

71 783 683

10 439 226

865 178

79 031 618

70 297 535

55 152 938

48 448 199

Equity attributable to owners of the parent Share Capital

48 382 289

43 927 981

48 382 289

43 927 981

Treasury Shares

(229 870)

Reserves

4 328 218

4 474 574

1 783 814

1 384 569

Retained Earnings

26 550 981

21 895 069

5 216 705

3 135 739

Total Equity

79 031 618

70 297 535

55 152 938

48 448 199

Total Equity and Liabilities

185 997 889

142 081 218

65 592 164

49 313 377

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

Increase/(decrease) in long term other Payables and Provisions

2 665 601

(1 653 905)

Proceeds from Borrowings

1 768 234

Repayment of Borrowings

(1 232 225)

(3 357 248)

(858 908)

10 345 331

(1 818 310)

Repayment of Finance Lease Liabilities Proceeds from Issuance of Convertiible Loan Repayment of Instalment due to a Supplier Dividends paid on Ordinary Shares

(2 461 196)

(2 221 021)

Proceeds from Issuance of Ordinary Shares

4 293 612

91 590

Purchase of Treasury Shares

(229 870)

Net Cash generated from/(used in) financing activities

14 290 579

(8 958 894)

Net increase/(decrease) in Cash and Cash Equivalents

14 669 995

(2 011 899)

Effect of exchange rate changes on Cash and Cash Equivalents

91 448

Cash and Cash Equivalents at beggining of year Cash and Cash Equivalents at end of year

(962 481)

9 966 329

12 940 709

24 727 772

9 966 329

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

Skywest 51

Shareholding Information

Corporate Directory

Directors Robert Jeffries Chatfield (Executive Chairman) Seah Kian Peng (Non-executive Director)

Name of Holder

Number of Shares

Citicorp Nominees Pty Limited

18 508 073

Apollo Nominees Ltd

15 201 087

UBS Nomminees Pty Ltd

13 340 403

Credit Suisse Securities (Europe) Limited

12 107 440

Fitel Nominees Limited

10 921 867

Chase Nominees Limited

9 000 000

National Nominees Limited

9 000 000

Pershing Nominees Limited

7 025 004

UBS Wealth Management

6 559 333

HSBC Global Custody Nominee (UK) Limited

4 700 000

QIC Limited

4 270 000

Fitel Nominees Limited

4 215 029

Mibago (S) Pte Ltd

4 000 000

Smith & Williamson Nominees Limited

3 973 743

Hargreave Hale Nominees Limited

3 632 000

Vidacos Nominees Limited

3 300 000

The Bank of New York (Nominees) Limited

3 190 801

HSBC Custody Nominees

3 059 129

Fitel Nominees Limited

3 050 000

John Leonard Jost (Non-executive Director) Ronald Lewis Altkenhead (Non-executive Director)

Business Address

Nominated Adviser

UK Registrars

510 Thomson Road

WH Ireland Limited

Computershare Investor Services PLC

#12-04 SLF Building

24 Martin Lane

PO Box 82, The Pavilions

Singapore 298 135

London EC4R 0DR

Bristol BS13 8AE

United Kingdom

Siobhan Mary Cool

Stockbroker

Australian Registrars

Han Kee Fong

WH Ireland Limited

Computershare

24 Martin Lane

117 Victoria Street

Registered Office

London EC4R 0DR

West End QLD 4101

510 Thomson Road

United Kingdom

Australia

Company Secretaries

#12-04 SLF Building Singapore 298 135

Bankers Citibank N.A National Corporate Group 8 Marina View #17-00 Square Tower 1 Singapore