DB Access Asia Conference, Singapore - SATS
DB Access Asia Conference, Singapore - SATS
DB Access Asia Conference, Singapore - SATS
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Investor Presentation<br />
<strong>DB</strong> <strong>Access</strong> <strong>Asia</strong> <strong>Conference</strong>, <strong>Singapore</strong><br />
20 – 21 May 2013
Forward Looking Statements<br />
This presentation may contain forward-looking statements regarding, among<br />
other things, the Company's outlook, business and strategy which are<br />
current as of the date they are made. These forward-looking statements are<br />
based largely on the current assumptions, expectations and projections of<br />
the directors and management of <strong>SATS</strong> about our business, and the industry<br />
and markets in which we operate. These statements are not guarantees of<br />
<strong>SATS</strong>‟ future performance and are subject to a number of risks and<br />
uncertainties, some of which are beyond the Company's control and are<br />
difficult to predict. Future developments and actual results could differ<br />
materially from those expressed in the forward-looking statements. In light of<br />
these risks and uncertainties, there can be no assurance that the forward-<br />
looking information will prove to be accurate. <strong>SATS</strong> does not undertake to<br />
update these forward-looking statements to reflect events or circumstances<br />
which arise after publication.<br />
2
Agenda<br />
• <strong>SATS</strong> Overview<br />
• Investment Highlights<br />
• Strategic Directions & Outlook<br />
• Appendix<br />
3
<strong>SATS</strong> Overview<br />
4
Our Business<br />
Food Solutions Gateway Services<br />
Airline Catering<br />
Institutional<br />
Catering<br />
Food Distribution<br />
and Logistics<br />
Airline Linen<br />
Laundry<br />
Passenger Services<br />
and Lounge<br />
Management<br />
Ramp and<br />
Baggage Handling<br />
Airfreight Handling<br />
and Logistics<br />
Aviation Security<br />
Cruise Handling<br />
and Terminal<br />
Management<br />
5
<strong>SATS</strong> at a Glance<br />
Revenue 1<br />
S$1.82bn<br />
Debt-to-Equity 2<br />
0.09x<br />
PATMI 1<br />
S$184.8mn<br />
ROE 1<br />
12.7%<br />
Total Assets 2<br />
S$2.01bn<br />
Market<br />
Capitalisation 3<br />
S$3.5bn<br />
(1) For the twelve months ending 31 March 2013 (2) As at 31 March 2013<br />
(3) As at 14 May 2013<br />
Cash and Cash<br />
Equivalents 2<br />
S$404.2mn<br />
Headcount 2<br />
~14,400<br />
6
4Q12/13 Highlights<br />
Revenue • Higher revenue due to steady growth momentum in gateway<br />
(+7.7%) and food (+1.4%) businesses.<br />
$449.0m +3.6%<br />
Operating Profit • Despite a 2.6% increase in operating expenditure, operating profit<br />
rose 12% to $54.1m.<br />
$54.1m +12.0%<br />
Share of results of<br />
Associates/JVs, net of tax<br />
$18.5m +76.2%<br />
• Higher share of results of associates/JVs attributed to higher<br />
profit contributions from associates in all regions.<br />
PATMI • PATMI declined 7.8% to $46.2m due to a $16.8m provision for<br />
$46.2m -7.8%<br />
impairment of Daniels‟ deferred consideration.<br />
• Excluding this impairment and gain arising from early retirement<br />
of sale and leaseback arrangement in 4Q12, underlying net profit<br />
grew 32.4% to $63m.<br />
7
Our Road Map – Expanding Beyond Aviation<br />
and <strong>Singapore</strong><br />
FY1999<br />
FY2013<br />
Food<br />
Solutions<br />
47.6%<br />
Food<br />
Solutions<br />
64.0%<br />
By Business By Industry<br />
By Geography<br />
Corp<br />
1.5%<br />
Corp<br />
0.3%<br />
Gateway<br />
Services<br />
50.9%<br />
Gateway<br />
Services<br />
35.7%<br />
Non-<br />
Aviation<br />
18.5%<br />
Corp<br />
0.3%<br />
Aviation<br />
100.0%<br />
Aviation<br />
81.2%<br />
Japan<br />
18.4%<br />
Others<br />
5.2%<br />
<strong>Singapore</strong><br />
100.0%<br />
<strong>Singapore</strong><br />
76.4%<br />
8
Investment Highlights<br />
9
Investment Highlights<br />
1.<br />
Unique<br />
Business Model<br />
2.<br />
Strong<br />
Market Position<br />
4.<br />
Sound Operating<br />
Fundamentals<br />
3.<br />
Positive<br />
Prospects<br />
5.<br />
Resilient<br />
Cash Flows<br />
10
1. Unique Business Model<br />
• Twin engines of growth in gateway services and food solutions<br />
• Largest aviation services network in <strong>Asia</strong><br />
10 Countries<br />
36 Airports<br />
Flights (1)<br />
410,246<br />
Passengers (1)<br />
65.1m<br />
Meals (1)<br />
70.3m<br />
Airfreight (1)<br />
4m tons<br />
Riyadh<br />
Jeddah India<br />
Male<br />
Amritsar<br />
Mumbai<br />
Goa<br />
Chennai<br />
Mangalore Bangalore<br />
Trivandrum<br />
Beijing<br />
Hong Kong Taipei<br />
Macau<br />
Ho Chi Minh<br />
City<br />
Tianjin<br />
<strong>Singapore</strong><br />
Indonesia<br />
Shenyang<br />
Manila<br />
(1) Based on FY12/13 aviation statistics for <strong>Singapore</strong> and overseas operations<br />
Delhi<br />
Kolkata<br />
Hyderabad<br />
Jilin<br />
Tokyo (Narita & Haneda)<br />
Medan<br />
Batam<br />
Balikpapan<br />
Manado<br />
Jakarta<br />
Surabaya Ujung<br />
Yogyakarta<br />
Pandang<br />
Denpasar<br />
Rockhampton<br />
Hervey Bay<br />
Brisbane<br />
Gateway Services<br />
Food Solutions<br />
Gateway Services and Food<br />
Solutions<br />
Timika<br />
11
2. Strong Market Position<br />
• <strong>Singapore</strong> aviation: first-choice service provider for close to 60<br />
scheduled airlines at Changi Airport<br />
Gateway Services (1)<br />
Ground & Cargo Handling<br />
DNATA 26%<br />
ASIG 0%<br />
<strong>SATS</strong> 74%<br />
Aviation Food Solutions (1)<br />
DNATA 15%<br />
Airline Catering<br />
(1) Source: Changi Airport Group; market share based on number of scheduled flights.<br />
<strong>SATS</strong> 85%<br />
• <strong>Singapore</strong> non-aviation: leading institutional caterer with the<br />
largest capacity<br />
• Regional aviation: majority of subsidiaries and JVs are either<br />
No. 1 or 2 service provider in the airports where they operate<br />
12
3. Positive Prospects - <strong>Singapore</strong> & the Region<br />
• Located in <strong>Asia</strong> – a bright spot in the world economy<br />
2013 GDP forecasts (1) China – 8.0% and India – 5.7%<br />
<strong>Asia</strong>-Pacific airlines remain the biggest contributors to global aviation industry profit (2)<br />
YTD Passenger traffic (RPK) on <strong>Asia</strong> Pacific airlines grew 3.6% against global<br />
average of 3.1% (3)<br />
• Well established international hub<br />
Changi Airport is <strong>Asia</strong>‟s leading air hub; passenger<br />
traffic up 10.0% to 51.2m in 2012 (4)<br />
Addition of the new Marina Bay Cruise Centre<br />
<strong>Singapore</strong><br />
• Transforming tourism and hospitality landscape<br />
Integrated Resorts, F1, Gardens by the Bay, River Safari, Sports Hub<br />
Visitor arrivals up 9.1% to 14.4m in 2012; target to reach 14.8.m to 15.5m in 2013 (5)<br />
(1) Source: World Economic Outlook Update April 2013 (2) Source: IATA Financial Forecast March 2013<br />
(3) Source: IATA February 2013 Air Transport Market Analysis (4) Source: Changi Airport Group<br />
(5) Source: <strong>Singapore</strong> Tourism Board<br />
13
4. Sound Operating Fundamentals<br />
• Strong customer focus and consistently high service standards<br />
• Economies of scale<br />
• Focused on sustainable cost levels<br />
10.6%<br />
Operating Margins – <strong>SATS</strong> vs global peers (1)<br />
9.1%<br />
7.0%<br />
Airport Service Providers Aviation Food Solutions Food Solutions<br />
Source: FactSet, Company information as of latest financial year<br />
(1) Calendarised to March-year end<br />
5.3%<br />
4.3%<br />
3.2% 3.0%<br />
<strong>SATS</strong> BBA Compass Sodexo Autogrill John Menzies gategroup<br />
14
5. Resilient Cash Flows & Strong Balance Sheet<br />
• Highly cash generative businesses<br />
with short cash cycle<br />
• Contract based revenues with limited<br />
downside risks<br />
• Low capex spend ~ S$60-70m p.a.<br />
• Healthy cash reserves of S$404.2m<br />
(36 cents per share) (1)<br />
• Low debt-to-equity ratio of 0.09x (1)<br />
• Undrawn S$500m MTN programme<br />
Excellent financial flexibility to seek<br />
strategic opportunities<br />
(1) As at 31 March 2013<br />
(2) Includes special dividends<br />
* Includes special dividends of S$0.06 per share,<br />
S$0.15 per share and S$0.04 per share for FY11,<br />
FY12 and FY13 respectively<br />
S$ m<br />
73.5%<br />
156<br />
Dividend Payout Ratio (2)<br />
FCF & Dividends Paid (2)<br />
108<br />
78.6%<br />
190<br />
142<br />
98.4%<br />
132<br />
188<br />
168.8%<br />
63.7% 71.4%<br />
FY08/09 FY09/10 FY10/11 FY11/12 FY12/13<br />
Ordinary dividend Special divdend<br />
104<br />
289<br />
208<br />
167<br />
FY08/09 FY09/10 FY10/11 FY11/12 FY12/13<br />
Free Cash Flow Dividends paid<br />
90.3%<br />
66.2%<br />
15
Strategic Directions & Outlook<br />
16
Our Strategy<br />
Customer Intimacy<br />
• Anticipate customers‟<br />
business challenges<br />
and find solutions<br />
collaboratively<br />
• Increase share of<br />
their spending<br />
Growth<br />
• Serve key customers<br />
at strategic locations<br />
• Seek strategic<br />
partnerships and<br />
acquisitions<br />
Operational Excellence<br />
• Continually improve<br />
productivity and<br />
performance<br />
Innovation<br />
• Explore creative ways<br />
to delight our customers<br />
with game-changing<br />
innovations<br />
• Sustain and improve<br />
product and service<br />
offerings<br />
17
Execution<br />
Focused execution of strategy<br />
Formed 50:50 ground<br />
handling JV with<br />
Air India – AI<strong>SATS</strong><br />
Awarded technical ramp<br />
handling licence at<br />
Changi Airport<br />
Formed JV to set up an<br />
integrated pig farm in<br />
Jilin Food Zone, China<br />
Purchased 50.7% stake<br />
in Japanese inflight<br />
caterer, TFK Corporation<br />
Bought 40% stake in<br />
Adel Abuljadayel Flight<br />
Catering in Saudi Arabia<br />
Formed a 51:49 JV with<br />
OCS Ventures to provide<br />
remote catering services<br />
Disposed UK nonaviation<br />
food business –<br />
Daniels Group<br />
Won tender to operate<br />
and manage the new<br />
Marina Bay Cruise<br />
Centre S‟pore (MBCCS)<br />
Commenced cruise<br />
handling and terminal<br />
management MBCCS<br />
Formed a 30%-owned<br />
assoc company in Saudi<br />
Arabia to offer pilgrimage<br />
catering services<br />
Divested 51% equity<br />
stake in Country Foods<br />
Macau<br />
Renewed ground<br />
handling and inflight<br />
catering contracts with<br />
SIA<br />
Appointed as exclusive<br />
caterer for <strong>Singapore</strong><br />
Sports Hub<br />
18
Key Contracts Secured in FY12/13<br />
<strong>Singapore</strong><br />
• Ground handling and inflight catering for <strong>Singapore</strong> Airlines.<br />
• Ground and cargo handling for Air India Express, FedEx,<br />
Lufthansa Cargo/AeroLogic, Sichuan Airlines, United Airways.<br />
• Inflight catering services for Air Mauritius.<br />
• Catering services for <strong>Singapore</strong> Sports Hub and the Home Team<br />
Academy.<br />
• .<br />
19
Key Contracts Secured in FY12/13<br />
Overseas<br />
• TFK: inflight catering services for Air <strong>Asia</strong> Japan, Air France, Finnair,<br />
Garuda, Scoot and Swiss International Air Lines.<br />
• <strong>SATS</strong> HK: ground handling services for Air India, Ethiopian Airlines,<br />
Malaysia Airlines, <strong>Singapore</strong> Airlines, Spring Airlines and Turkish<br />
Airlines.<br />
20
Corporate Updates<br />
Key Management Appointments<br />
• Appointed Mr Alexander Charles Hungate as Executive Director<br />
effective 16 July 2013 and subsequently as President & CEO effective<br />
1 January 2014.<br />
• Appointed Mr Cho Wee Peng as CFO effective 1 July 2013.<br />
• Appointed Mr Wong Hong as the Executive Vice President for<br />
Gateway Services.<br />
21
Accolades<br />
• <strong>SATS</strong> clinched „Best Air Cargo Terminal in <strong>Asia</strong>‟ title at the 27 th <strong>Asia</strong>n<br />
Freight & Supply Chain Awards (AFSCA) for the 15 th time.<br />
• <strong>SATS</strong> won joint Silver Award for Best Managed Boards at <strong>Singapore</strong><br />
Corporate Awards 2012.<br />
• <strong>SATS</strong> was ranked 27th out of 100 top brands in <strong>Singapore</strong> by Brand<br />
Finance, up 8 notches from last year.<br />
• <strong>SATS</strong> won a distinction award at the inaugural Human Capital<br />
Breakthrough Award for being one of <strong>Singapore</strong>‟s boldest and most<br />
innovative companies in the field of people management.<br />
• AI<strong>SATS</strong> Bangalore Cargo won the “Air Cargo Terminal Operator of the<br />
Year in India” for second consecutive year at the Indian Supply Chain<br />
and Logistics Summit and Excellence Awards 2013.<br />
22
Outlook<br />
The continued growth of passenger traffic at <strong>Singapore</strong> Changi Airport<br />
and the robust intra-<strong>Asia</strong> traffic will provide opportunities for the<br />
Group‟s gateway and food businesses. Air freight demand, however, is<br />
anticipated to remain weak.<br />
The continuing manpower policies in <strong>Singapore</strong> and their impact on<br />
operating costs remain major challenges for <strong>SATS</strong>.<br />
The Group continues to seek new growth areas by expanding its<br />
offerings and regional footprint.<br />
23
In Summary<br />
• Gateway Services and Food Solutions are our core businesses.<br />
• We will leverage our core strengths to access opportunities in <strong>Asia</strong><br />
Pacific and the Middle East.<br />
• We continue to adopt a focused and disciplined approach to drive<br />
both organic and inorganic growth.<br />
• Our strong financial position provides funding capacity for<br />
acquisitions.<br />
• We continue to return surplus cash to shareholders by way of<br />
dividends.<br />
• Our objectives are well aligned to create value for shareholders.<br />
24
Appendix<br />
- Highlights of 4Q & FY12/13 Results<br />
Released on 15 May 2013<br />
25
Impairment of Daniels‟ Deferred Consideration<br />
• Took a $16.8m one-off provision for impairment of Daniels‟ deferred<br />
consideration receivable.<br />
• This receivable is contingent on Daniels‟ FY12 and FY13 EBITDA which<br />
have not met the agreed annual target of £19.245m.<br />
Recap of Daniels Divestment:<br />
• Aggregate sales consideration comprised of:<br />
- £150m consideration received<br />
- Deferred consideration of up to £13m in the event that Daniels met its EBITDA<br />
target over two-year period<br />
• Sale consideration estimated at £159m after accounting for fair value of<br />
deferred consideration.<br />
• Deferred consideration earn-out formula: 3 x (FY EBITDA - £19.245m).<br />
- No earn-out, no clawback if EBITDA target was not achieved<br />
• Recorded loss on disposal of S$5.5m in 3Q12.<br />
26
Underlying Net Profit from Continuing Ops<br />
$M 4Q12/13 4Q11/12 FY12/13 FY11/12<br />
Profit Attributable to Owners of the Company 46.2 50.1 184.8 170.9<br />
Adjustment for Discontinued Operations<br />
Loss/(Profit) from Daniels - - - 10.1<br />
One-offs:<br />
Write-back of TFK's Retirement Benefit Plan<br />
Obligations - - - (5.5)<br />
Loss/(Gain) on Early Retirement of Sale &<br />
Lease Back Arrangement - (2.5) - 2.0<br />
Loss on Disposal of Country Foods Macau - - 0.4 -<br />
Impairment of Daniels Deferred Consideration 16.8 - 16.8 -<br />
Underlying Net Profit from Continuing<br />
Operations 63.0 47.6 202.0 177.5<br />
27
FY12/13 Highlights<br />
Revenue • Higher revenue driven by organic growth in gateway (+7.6%) and<br />
food (+8.1%) businesses.<br />
$1,819.0m +7.9%<br />
Operating Profit • Operating profit increased due mainly to better performance of<br />
food business, including TFK.<br />
$192.3m +13.8%<br />
Share of results of<br />
Associates/JVs, net of tax<br />
$52.7m +27.9%<br />
• Higher profit contributions from associates/JVs in North and<br />
Southeast <strong>Asia</strong> saw higher share of results of associates/JVs.<br />
PATMI • Due to provision for impairment of Daniels‟ deferred<br />
$184.8m +8.1%<br />
consideration, PATMI grew at a lower rate of 8.1% to $184.8m.<br />
• Excluding Daniels‟ loss in FY11/12 and one-off items, underlying<br />
net profit improved 13.8% to $202m.<br />
Debt-to-equity • Debt-to-equity ratio remained healthy.<br />
0.09 times -0.01 ppt<br />
• Cash balance was $404.2m as at 31 March 2013.<br />
• Free cash flow generated during the year was $208.1m.<br />
28
4Q and FY12/13 Financials<br />
$M 4Q12/13 4Q11/12 % Change FY12/13 FY11/12 % Change<br />
Operating Revenue 449.0 433.3 3.6 1,819.0 1,685.4 7.9<br />
Operating Expenditure (394.9) (385.0) 2.6 (1,626.7) (1,516.4) 7.3<br />
Operating Profit 54.1 48.3 12.0 192.3 169.0 13.8<br />
EBITDA 77.2 73.3 5.3 285.2 264.8 7.7<br />
Share of Results of<br />
Associates/JVs, Net of Tax<br />
Other Non-Operating<br />
Income/Expenses<br />
18.5 10.5 76.2 52.7 41.2 27.9<br />
(17.0) 3.3 n.m. (20.5) 11.6 n.m.<br />
PBT from Continuing Operations 55.6 62.1 (10.5) 224.5 221.8 1.2<br />
Profit from Continuing Operations,<br />
Net of Tax & Non-Controlling<br />
Interests<br />
Loss from Discontinued<br />
Operations, Net of Tax<br />
46.2 50.1 (7.8) 184.8 181.0 2.1<br />
-<br />
-<br />
-<br />
-<br />
(10.1)<br />
PATMI 46.2 50.1 (7.8) 184.8 170.9 8.1<br />
Underlying Net Profit from<br />
Continuing Operations<br />
n.m. – not meaningful<br />
n.m.<br />
63.0 47.6 32.4 202.0 177.5 13.8<br />
29
Q-o-Q Highlights<br />
$M 4Q12/13 3Q12/13 2Q12/13 1Q12/13 4Q11/12<br />
Revenue 449.0 470.6 461.5 437.9 433.3<br />
% Change in Revenue -4.6% 2.0% 5.4% 1.1% -2.0%<br />
Expenditure (394.9) (423.8) (409.4) (398.6) (385.0)<br />
Operating Profit 54.1 46.8 52.1 39.3 48.3<br />
% Change in Operating Profit 15.6% -10.2% 32.6% -18.6% 10.3%<br />
EBITDA 77.2 70.6 75.5 61.9 73.3<br />
Share of Results of Associates/JVs, Net of Tax 18.5 12.1 10.4 11.7 10.5<br />
PBT from Continuing Operations 55.6 57.2 61.0 50.7 62.1<br />
Profit from Continuing Operations, Net of Tax & Non-<br />
Controlling Interests<br />
Loss from Discontinued Operations, Net of Tax -<br />
46.2 47.0 50.3 41.3 50.1<br />
PATMI 46.2 47.0 50.3 41.3 50.1<br />
% Change in PATMI -1.7% -6.6% 21.8% -17.6% 31.2%<br />
Underlying Net Profit from Continuing<br />
Operations<br />
-<br />
63.0 47.0 50.7 41.3 47.6<br />
% Change in Underlying Net Profit 34.0% -7.3% 22.8% -13.2% 8.9%<br />
-<br />
-<br />
-<br />
30
Financial Indicators<br />
% 4Q12/13 4Q11/12<br />
Change<br />
(ppt) FY12/13 FY11/12<br />
Change<br />
(ppt)<br />
Operating Margin 12.0 11.1 0.9 10.6 10.0 0.6<br />
EBITDA Margin 17.2 16.9 0.3 15.7 15.7 -<br />
PBT Margin 12.4 14.3 (1.9) 12.3 13.2 (0.9)<br />
PATMI Margin 10.3 11.6 (1.3) 10.2 10.1 0.1<br />
Underlying Net Margin 14.0 11.0 3.0 11.1 10.5 0.6<br />
%<br />
%<br />
Cents 4Q12/13 4Q11/12 Change FY12/13 FY11/12 Change<br />
EPS Based on Net Profit<br />
Attributable to Shareholders<br />
EPS Based on Net Profit from<br />
4.2 4.5 (6.7) 16.6 15.4 7.8<br />
Continuing Operations<br />
Attributable to Shareholders<br />
4.2 4.5 (6.7) 16.6 16.3 1.8<br />
31-Mar-13 31-Mar-12<br />
NAV Per Share ($) 1.26 1.36<br />
Debt Equity Ratio 0.09 0.10<br />
Margins are calculated based on profits from continuing operations.<br />
31
Group Segmental Revenue<br />
$M 4Q12/13 4Q11/12 % Change FY12/13 FY11/12 % Change<br />
By Business:<br />
Gateway Services 165.3 153.5 7.7 648.7 602.7 7.6<br />
Food Solutions 282.3 278.3 1.4 1,164.7 1,077.0 8.1<br />
Corporate 1.4 1.5 (6.7) 5.6 5.7 (1.8)<br />
Total 449.0 433.3 3.6 1,819.0 1,685.4 7.9<br />
By Industry:<br />
Aviation 363.2 351.9 3.2 1,476.1 1,357.6 8.7<br />
Non-Aviation 84.4 79.9 5.6 337.3 322.1 4.7<br />
Corporate 1.4 1.5 (6.7)<br />
5.6 5.7 (1.8)<br />
Total 449.0 433.3 3.6 1,819.0 1,685.4 7.9<br />
By Geographical Location:<br />
<strong>Singapore</strong> 350.3 326.1 7.4 1,389.9 1,298.5 7.0<br />
Japan 78.1 81.5 (4.2) 334.4 302.6 10.5<br />
Others 20.6 25.7 (19.8) 94.7 84.3 12.3<br />
Total 449.0 433.3 3.6 1,819.0 1,685.4 7.9<br />
32
Group Expenditure – 4Q12/13<br />
Including TFK Excluding TFK<br />
$M 4Q12/13 4Q11/12 % Change 4Q12/13 4Q11/12 % Change<br />
Staff Costs 179.3 169.1 6.0 144.6 134.3 7.7<br />
Cost of Raw Materials 97.5 96.3 1.2 71.6 70.0 2.3<br />
Licensing Fees 19.2 18.1 6.1 18.7 17.7 5.6<br />
Depreciation & Amortisation 23.5 26.2 (10.3) 20.2 21.7 (6.9)<br />
Company Premise & Utilities 31.3 31.6 (0.9) 25.6 25.4 0.8<br />
Other Costs 44.1 43.7 0.9 38.2 37.8 1.1<br />
Total Expenditure 394.9 385.0 2.6 318.9 306.9 3.9<br />
Revenue 449.0 433.3 3.6 370.9 351.8 5.4<br />
Excluding TFK‟s expenses, group expenditure increased 3.9% y-o-y<br />
against revenue growth of 5.4%<br />
33
Group Expenditure – FY12/13<br />
$M FY12/13 FY11/12 % Change FY12/13 FY11/12 % Change<br />
Staff Costs 765.5 697.0 9.8 617.3 559.8 10.3<br />
Cost of Raw Materials 393.0 370.7 6.0 284.1 271.7 4.6<br />
Licensing Fees 77.0 70.3 9.5 75.2 68.8 9.3<br />
Depreciation & Amortisation 92.9 97.4 (4.6) 79.3 79.7 (0.5)<br />
Company Premise & Utilities 130.5 123.7 5.5 105.7 99.6 6.1<br />
Other Costs 167.8 157.3 6.7 142.8 134.5 6.2<br />
Total Expenditure 1,626.7<br />
Revenue 1,819.0<br />
Including TFK Excluding TFK<br />
1,516.4<br />
1,685.4<br />
7.3 1,304.4<br />
7.9 1,484.6<br />
1,214.1 7.4<br />
1,382.8<br />
7.4<br />
34
Associates/JVs Performance by Business –<br />
Based on <strong>SATS</strong>‟ Shareholding*<br />
$M 4Q12/13 4Q11/12 % Change FY12/13 FY11/12 % Change<br />
Turnover 94.6 86.9 8.9 315.8 337.3 (6.4)<br />
Gateway Services 74.7 68.6 8.9 240.6 263.1 (8.6)<br />
Food Solutions 19.9 18.3 8.7 75.2 74.2 1.3<br />
EBITDA 24.1 16.1 49.7 83.6 77.4 8.0<br />
Gateway Services 21.7 14.6 48.6 74.0 71.2 3.9<br />
Food Solutions 2.4 1.5 60.0 9.6 6.2 54.8<br />
EBITDA Margin (%) 25.5 18.5 7.0 ppt 26.5 22.9 3.6 ppt<br />
Gateway Services 29.0 21.3 7.7 ppt 30.8 27.1 3.7 ppt<br />
Food Solutions 12.1 8.2 3.9 ppt 12.8 8.4 4.4 ppt<br />
PAT 18.6 10.5 77.1 52.9 41.7 26.9<br />
Gateway Services 17.1 11.2 52.7 48.8 41.1 18.7<br />
Food Solutions 1.5 (0.7) n.m. 4.1 0.6 n.m.<br />
Dividends Received -<br />
* Excludes TFK’s Associates<br />
n.m. – not meaningful<br />
-<br />
-<br />
24.6 23.2 6.0<br />
35
Associates/JVs Performance by Region –<br />
Based on <strong>SATS</strong>‟ Shareholding*<br />
$M 4Q12/13 4Q11/12 % Change FY12/13 FY11/12 % Change<br />
Turnover 94.6 86.9 8.9 315.8 337.3 (6.4)<br />
West <strong>Asia</strong> 32.0 26.3 21.7 81.5 103.3 (21.1)<br />
North <strong>Asia</strong> 45.5 45.1 0.9 170.7 174.3 (2.1)<br />
SEA & Australasia 17.1 15.5 10.3 63.6 59.7 6.5<br />
EBITDA 24.1 16.1 49.7 83.6 77.4 8.0<br />
West <strong>Asia</strong> 4.5 2.3 95.7 15.4 20.4 (24.5)<br />
North <strong>Asia</strong> 9.0 9.0 -<br />
* Excludes TK’s Associates<br />
40.5 35.8 13.1<br />
SEA & Australasia 10.6 4.8 120.8 27.7 21.2 30.7<br />
EBITDA Margin (%) 25.5 18.5 7.0 ppt 26.5 22.9 3.6 ppt<br />
West <strong>Asia</strong> 14.1 8.7 5.4 ppt 18.9 19.7 (0.8) ppt<br />
North <strong>Asia</strong> 19.8 20.0 (0.2) ppt 23.7 20.5 3.2 ppt<br />
SEA & Australasia 62.0 31.0 31.0 ppt 43.6 35.5 8.1 ppt<br />
PAT 18.6 10.5 77.1 52.9 41.7 26.9<br />
West <strong>Asia</strong> 3.7 1.0 n.m. 9.9 10.7 (7.5)<br />
North <strong>Asia</strong> 6.5 4.8 35.4 23.5 15.6 50.6<br />
SEA & Australasia 8.4 4.7 78.7 19.5 15.4 26.6<br />
Dividends Received -<br />
n.m. – not meaningful<br />
-<br />
-<br />
24.6 23.2 6.0<br />
36
Proforma Segmental Revenue (Include<br />
Proportionate Revenue from Assocs/JVs*)<br />
FY12/13<br />
FY11/12<br />
By Business By Industry By Geography<br />
Food<br />
Solutions<br />
58.0%<br />
Food<br />
Solutions<br />
56.9%<br />
Corp<br />
0.3%<br />
Corp<br />
0.3%<br />
Gateway<br />
Services<br />
41.7%<br />
Gateway<br />
Services<br />
42.8%<br />
* Excludes TFK’s Associates<br />
Corp<br />
0.3%<br />
Non-<br />
Aviation<br />
15.8%<br />
Non-<br />
Aviation<br />
15.9%<br />
Corp<br />
0.3%<br />
Aviation<br />
83.9%<br />
Aviation<br />
83.8%<br />
Assoc/JVs<br />
14.8%<br />
Assoc/JVs<br />
16.7%<br />
Japan<br />
15.7%<br />
Japan<br />
14.9%<br />
Others<br />
4.4%<br />
Others<br />
4.2%<br />
<strong>Singapore</strong><br />
65.1%<br />
<strong>Singapore</strong><br />
64.2%<br />
37
Group Balance Sheet<br />
$M As at 31 Mar 13 As at 31 Mar 12<br />
Total Equity 1,496.7 1,616.2<br />
Long-term Loans 108.7 131.3<br />
Other Long-Term Liabilities 89.7 102.7<br />
Current Liabilities 310.1 272.3<br />
Total Equity & Liabilities 2,005.2 2,122.5<br />
Fixed Assets & Investment Property 603.5 667.4<br />
Associated Companies & JVs 390.2 368.3<br />
Intangible Assets 192.9 213.0<br />
Other Non-Current Assets & Long-Term Investment 38.3 42.6<br />
Current Assets<br />
Cash & Short-Term Deposits 405.5 471.6<br />
Debtors & Other Current Assets 374.8 359.6<br />
Total Assets 2,005.2 2,122.5<br />
Decline in equity and cash & short-term deposits mainly attributed to<br />
dividend payments of $288.6m<br />
38
Group Cash Flow Statement<br />
$M FY12/13 FY11/12 Difference<br />
Net Cash from Operating Activities 245.9 168.0 77.9<br />
Net Cash generated from/(used in) Investing Activities (16.6) 224.5 (241.1)<br />
Net Cash used in Financing Activities (286.4) (215.9) (70.5)<br />
Net (decrease)/increase in Cash & Cash Equivalents (57.1) 176.6 (233.7)<br />
Cash & Cash Equivalents at the end of the period 404.2 470.1 (65.9)<br />
Free Cash Flow* 208.1 103.7 104.4<br />
Higher free cash flow attributed to higher cash flow from operating activities<br />
and lower capex incurred<br />
* Free Cash Flow refers to net cash from operating activities less cash purchases of capital expenditure.<br />
39
Operating Statistics for <strong>Singapore</strong> Aviation Business<br />
4Q12/13 4Q11/12 % Change FY12/13 FY11/12 % Change<br />
Passengers Handled ('M) 10.51 9.67 8.7 41.23 37.92 8.7<br />
Flights Handled ('000) 31.42 29.26 7.4 123.01 115.19 6.8<br />
Unit Services ('000) 26.67 24.31 9.7 103.80 95.88 8.3<br />
Cargo ('000 tonnes) 357.80 351.43 1.8 1,463.09<br />
1,504.64 (2.8)<br />
Gross Meals Produced ('M) 6.94 6.70 3.6 28.26 26.50 6.6<br />
Unit Meals Produced ('M) 5.37 5.26 2.1 21.85 20.72 5.5<br />
All operating metrics grew y-o-y in 4Q FY12/13<br />
• The above aviation operating data cover <strong>Singapore</strong> operations only.<br />
• With the exception of unit and gross meals produced, all data include LCC operations.<br />
• Unit services in 9M11/12 has been restated due to the change in the weightage factor for certain aircraft<br />
type. As a result, the restated figure is higher than what was previously announced for 9M11/12.<br />
40
END<br />
41