Presentation Slides - SATS

4Q and FY12/13 Performance Review
15 May 2013

Forward Looking Statements
This presentation may contain forward-looking statements regarding,
among other things, the Company's outlook, business and strategy which
are current as of the date they are made. These forward-looking
statements are based largely on the current assumptions, expectations
and projections of the directors and management of SATS about our
business, and the industry and markets in which we operate. These
statements are not guarantees of SATS’ future performance and are
subject to a number of risks and uncertainties, some of which are beyond
the Company's control and are difficult to predict. Future developments
and actual results could differ materially from those expressed in the
forward-looking statements. In light of these risks and uncertainties, there
can be no assurance that the forward-looking information will prove to be
accurate. SATS does not undertake to update these forward-looking
statements to reflect events or circumstances which arise after publication.
2

Agenda
• Financial highlights
• Group financial review
• Group business review
• Outlook
3

4Q12/13 Highlights
Revenue • Higher revenue due to steady growth momentum in gateway
(+7.7%) and food (+1.4%) businesses.
$449.0m +3.6%
Operating Profit • Despite a 2.6% increase in operating expenditure, operating profit
rose 12% to $54.1m.
$54.1m +12.0%
Share of results of
Associates/JVs, net of tax
$18.5m +76.2%
• Higher share of results of associates/JVs attributed to higher
profit contributions from associates in all regions.
PATMI • PATMI declined 7.8% to $46.2m due to a $16.8m provision for
$46.2m -7.8%
impairment of Daniels’ deferred consideration.
• Excluding this impairment and gain arising from early retirement
of sale and leaseback arrangement in 4Q12, underlying net profit
grew 32.4% to $63m.
4

FY12/13 Highlights
Revenue • Higher revenue driven by organic growth in gateway (+7.6%) and
food (+8.1%) businesses.
$1,819.0m +7.9%
Operating Profit • Operating profit increased due mainly to better performance of
food business, including TFK.
$192.3m +13.8%
Share of results of
Associates/JVs, net of tax
$52.7m +27.9%
• Higher profit contributions from associates/JVs in North and
Southeast Asia saw higher share of results of associates/JVs.
PATMI • Due to provision for impairment of Daniels’ deferred
$184.8m +8.1%
consideration, PATMI grew at a lower rate of 8.1% to $184.8m.
• Excluding Daniels’ loss in FY11/12 and one-off items, underlying
net profit improved 13.8% to $202m.
Debt-to-equity • Debt-to-equity ratio remained healthy.
• Cash balance was $404.2m as at 31 March 2013.
0.09 times -0.01 ppt • Free cash flow generated during the year was $208.1m.
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Group Financial Review
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4Q and FY12/13 Financials
$M 4Q12/13 4Q11/12 % Change FY12/13 FY11/12 % Change
Operating Revenue 449.0 433.3 3.6 1,819.0 1,685.4 7.9
Operating Expenditure (394.9) (385.0) 2.6 (1,626.7) (1,516.4) 7.3
Operating Profit 54.1 48.3 12.0 192.3 169.0 13.8
EBITDA 77.2 73.3 5.3 285.2 264.8 7.7
Share of Results of
Associates/JVs, Net of Tax
Other Non-Operating
Income/Expenses
18.5 10.5 76.2 52.7 41.2 27.9
(17.0) 3.3 n.m. (20.5) 11.6 n.m.
PBT from Continuing Operations 55.6 62.1 (10.5) 224.5 221.8 1.2
Profit from Continuing Operations,
Net of Tax & Non-Controlling
Interests
Loss from Discontinued
Operations, Net of Tax
46.2 50.1 (7.8) 184.8 181.0 2.1
- - - - (10.1) n.m.
PATMI 46.2 50.1 (7.8) 184.8 170.9 8.1
Underlying Net Profit from
Continuing Operations
63.0 47.6 32.4 202.0 177.5 13.8
n.m. – not meaningful
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Impairment of Daniels’ Deferred Consideration
• Took a $16.8m one-off provision for impairment of Daniels’ deferred
consideration receivable.
• This receivable is contingent on Daniels’ FY12 and FY13 EBITDA exceeding
the agreed annual target of £19.245m.
Recap of Daniels Divestment:
• Aggregate sales consideration comprised of:
- £150m consideration received
- Deferred consideration of up to £13m in the event that Daniels met its EBITDA
target over two-year period
• Sale consideration estimated at £159m after accounting for fair value of
deferred consideration.
• Deferred consideration earn-out formula: 3 x (FY EBITDA - £19.245m).
- No earn-out, no clawback if EBITDA target was not achieved
• Recorded loss on disposal of S$5.5m in 3Q12.
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Underlying Net Profit from Continuing Ops
$M 4Q12/13 4Q11/12 FY12/13 FY11/12
Profit Attributable to Owners of the Company 46.2 50.1 184.8 170.9
Adjustment for Discontinued Operations
Loss/(Profit) from Daniels - - - 10.1
One-offs:
Write-back of TFK's Retirement Benefit Plan
Obligations - - - (5.5)
Loss/(Gain) on Early Retirement of Sale &
Lease Back Arrangement - (2.5) - 2.0
Loss on Disposal of Country Foods Macau - - 0.4 -
Impairment of Daniels Deferred Consideration 16.8 - 16.8 -
Underlying Net Profit from Continuing
Operations 63.0 47.6 202.0 177.5
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Q-o-Q Highlights
$M 4Q12/13 3Q12/13 2Q12/13 1Q12/13 4Q11/12
Revenue 449.0 470.6 461.5 437.9 433.3
% Change in Revenue -4.6% 2.0% 5.4% 1.1% -2.0%
Expenditure (394.9) (423.8) (409.4) (398.6) (385.0)
Operating Profit 54.1 46.8 52.1 39.3 48.3
% Change in Operating Profit 15.6% -10.2% 32.6% -18.6% 10.3%
EBITDA 77.2 70.6 75.5 61.9 73.3
Share of Results of Associates/JVs, Net of Tax 18.5 12.1 10.4 11.7 10.5
PBT from Continuing Operations 55.6 57.2 61.0 50.7 62.1
Profit from Continuing Operations, Net of Tax & Non-
Controlling Interests
46.2 47.0 50.3 41.3 50.1
Loss from Discontinued Operations, Net of Tax - - - - -
PATMI 46.2 47.0 50.3 41.3 50.1
% Change in PATMI -1.7% -6.6% 21.8% -17.6% 31.2%
Underlying Net Profit from Continuing
Operations
63.0 47.0 50.7 41.3 47.6
% Change in Underlying Net Profit 34.0% -7.3% 22.8% -13.2% 8.9%
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Financial Indicators
% 4Q12/13 4Q11/12
Change
(ppt) FY12/13 FY11/12
Change
(ppt)
Operating Margin 12.0 11.1 0.9 10.6 10.0 0.6
EBITDA Margin 17.2 16.9 0.3 15.7 15.7 -
PBT Margin 12.4 14.3 (1.9) 12.3 13.2 (0.9)
PATMI Margin 10.3 11.6 (1.3) 10.2 10.1 0.1
Underlying Net Margin 14.0 11.0 3.0 11.1 10.5 0.6
Cents 4Q12/13 4Q11/12
%
Change FY12/13 FY11/12
%
Change
EPS Based on Net Profit
Attributable to Shareholders
4.2 4.5 (6.7) 16.6 15.4 7.8
EPS Based on Net Profit from
Continuing Operations
Attributable to Shareholders
4.2 4.5 (6.7) 16.6 16.3 1.8
31-Mar-13 31-Mar-12
NAV Per Share ($) 1.26 1.36
Debt Equity Ratio 0.09 0.10
Margins are calculated based on profits from continuing operations.
11

Group Segmental Revenue
$M 4Q12/13 4Q11/12 % Change FY12/13 FY11/12 % Change
By Business:
Gateway Services 165.3 153.5 7.7 648.7 602.7 7.6
Food Solutions 282.3 278.3 1.4 1,164.7 1,077.0 8.1
Corporate 1.4 1.5 (6.7) 5.6 5.7 (1.8)
Total 449.0 433.3 3.6 1,819.0 1,685.4 7.9
By Industry:
Aviation 363.2 351.9 3.2 1,476.1 1,357.6 8.7
Non-Aviation 84.4 79.9 5.6 337.3 322.1 4.7
Corporate 1.4 1.5 (6.7) 5.6 5.7 (1.8)
Total 449.0 433.3 3.6 1,819.0 1,685.4 7.9
By Geographical Location:
Singapore 350.3 326.1 7.4 1,389.9 1,298.5 7.0
Japan 78.1 81.5 (4.2) 334.4 302.6 10.5
Others 20.6 25.7 (19.8) 94.7 84.3 12.3
Total 449.0 433.3 3.6 1,819.0 1,685.4 7.9
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Group Expenditure – 4Q12/13
Including TFK
Excluding TFK
$M 4Q12/13 4Q11/12 % Change 4Q12/13 4Q11/12 % Change
Staff Costs 179.3 169.1 6.0 144.6 134.3 7.7
Cost of Raw Materials 97.5 96.3 1.2 71.6 70.0 2.3
Licensing Fees 19.2 18.1 6.1 18.7 17.7 5.6
Depreciation & Amortisation 23.5 26.2 (10.3) 20.2 21.7 (6.9)
Company Premise & Utilities 31.3 31.6 (0.9) 25.6 25.4 0.8
Other Costs 44.1 43.7 0.9 38.2 37.8 1.1
Total Expenditure 394.9 385.0 2.6 318.9 306.9 3.9
Revenue 449.0 433.3 3.6 370.9 351.8 5.4
Excluding TFK’s expenses, group expenditure increased 3.9% y-o-y
against revenue growth of 5.4%
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Group Expenditure – FY12/13
Including TFK
Excluding TFK
$M FY12/13 FY11/12 % Change FY12/13 FY11/12 % Change
Staff Costs 765.5 697.0 9.8 617.3 559.8 10.3
Cost of Raw Materials 393.0 370.7 6.0 284.1 271.7 4.6
Licensing Fees 77.0 70.3 9.5 75.2 68.8 9.3
Depreciation & Amortisation 92.9 97.4 (4.6) 79.3 79.7 (0.5)
Company Premise & Utilities 130.5 123.7 5.5 105.7 99.6 6.1
Other Costs 167.8 157.3 6.7 142.8 134.5 6.2
Total Expenditure 1,626.7 1,516.4 7.3 1,304.4 1,214.1 7.4
Revenue 1,819.0 1,685.4 7.9 1,484.6 1,382.8 7.4
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Associates/JVs Performance by Business –
Based on SATS’ Shareholding*
$M 4Q12/13 4Q11/12 % Change FY12/13 FY11/12 % Change
Turnover 94.6 86.9 8.9 315.8 337.3 (6.4)
Gateway Services 74.7 68.6 8.9 240.6 263.1 (8.6)
Food Solutions 19.9 18.3 8.7 75.2 74.2 1.3
EBITDA 24.1 16.1 49.7 83.6 77.4 8.0
Gateway Services 21.7 14.6 48.6 74.0 71.2 3.9
Food Solutions 2.4 1.5 60.0 9.6 6.2 54.8
EBITDA Margin (%) 25.5 18.5 7.0 ppt 26.5 22.9 3.6 ppt
Gateway Services 29.0 21.3 7.7 ppt 30.8 27.1 3.7 ppt
Food Solutions 12.1 8.2 3.9 ppt 12.8 8.4 4.4 ppt
PAT 18.6 10.5 77.1 52.9 41.7 26.9
Gateway Services 17.1 11.2 52.7 48.8 41.1 18.7
Food Solutions 1.5 (0.7) n.m. 4.1 0.6 n.m.
Dividends Received - - - 24.6 23.2 6.0
* Excludes TFK’s Associates
n.m. – not meaningful
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Associates/JVs Performance by Region –
Based on SATS’ Shareholding*
$M 4Q12/13 4Q11/12 % Change FY12/13 FY11/12 % Change
Turnover 94.6 86.9 8.9 315.8 337.3 (6.4)
West Asia 32.0 26.3 21.7 81.5 103.3 (21.1)
North Asia 45.5 45.1 0.9 170.7 174.3 (2.1)
SEA & Australasia 17.1 15.5 10.3 63.6 59.7 6.5
EBITDA 24.1 16.1 49.7 83.6 77.4 8.0
West Asia 4.5 2.3 95.7 15.4 20.4 (24.5)
North Asia 9.0 9.0 - 40.5 35.8 13.1
SEA & Australasia 10.6 4.8 120.8 27.7 21.2 30.7
EBITDA Margin (%) 25.5 18.5 7.0 ppt 26.5 22.9 3.6 ppt
West Asia 14.1 8.7 5.4 ppt 18.9 19.7 (0.8) ppt
North Asia 19.8 20.0 (0.2) ppt 23.7 20.5 3.2 ppt
SEA & Australasia 62.0 31.0 31.0 ppt 43.6 35.5 8.1 ppt
PAT 18.6 10.5 77.1 52.9 41.7 26.9
West Asia 3.7 1.0 n.m. 9.9 10.7 (7.5)
North Asia 6.5 4.8 35.4 23.5 15.6 50.6
SEA & Australasia 8.4 4.7 78.7 19.5 15.4 26.6
Dividends Received - - - 24.6 23.2 6.0
* Excludes TK’s Associates
n.m. – not meaningful
16

Proforma Segmental Revenue (Include
Proportionate Revenue from Assocs/JVs*)
FY12/13
By Business By Industry By Geography
Food
Solutions
58.1%
Corp
0.2%
Gateway
Services
41.7%
Corp
0.3%
Non-
Aviation
15.8%
Aviation
83.9%
Assoc/JVs
14.8%
Japan
15.7%
Others
4.4%
Singapore
65.1%
FY11/12
Food
Solutions
56.9%
Corp
0.3%
Gateway
Services
42.8%
Non-
Aviation
15.9%
Corp
0.3%
Aviation
83.8%
Assoc/JVs
16.7%
Japan
14.9%
Others
4.2%
Singapore
64.2%
* Excludes TFK’s Associates
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Group Balance Sheet
$M As at 31 Mar 13 As at 31 Mar 12
Total Equity 1,496.7 1,616.2
Long-term Loans 108.7 131.3
Other Long-Term Liabilities 89.7 102.7
Current Liabilities 310.1 272.3
Total Equity & Liabilities 2,005.2 2,122.5
Fixed Assets & Investment Property 603.5 667.4
Associated Companies & JVs 390.2 368.3
Intangible Assets 192.9 213.0
Other Non-Current Assets & Long-Term Investment 38.3 42.6
Current Assets
Cash & Short-Term Deposits 405.5 471.6
Debtors & Other Current Assets 374.8 359.6
Total Assets 2,005.2 2,122.5
Decline in equity and cash & short-term deposits mainly attributed to
dividend payments of $288.6m
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Group Cash Flow Statement
$M FY12/13 FY11/12 Difference
Net Cash from Operating Activities 245.9 168.0 77.9
Net Cash generated from/(used in) Investing Activities (16.6) 224.5 (241.1)
Net Cash used in Financing Activities (286.4) (215.9) (70.5)
Net (decrease)/increase in Cash & Cash Equivalents (57.1) 176.6 (233.7)
Cash & Cash Equivalents at the end of the period 404.2 470.1 (65.9)
Free Cash Flow* 208.1 103.7 104.4
Higher free cash flow attributed to higher cash flow from operating activities
and lower capex incurred
* Free Cash Flow refers to net cash from operating activities less cash purchases of capital expenditure.
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Operating Statistics for Singapore Aviation Business
4Q12/13 4Q11/12 % Change FY12/13 FY11/12 % Change
Passengers Handled ('M) 10.51 9.67 8.7 41.23 37.92 8.7
Flights Handled ('000) 31.42 29.26 7.4 123.01 115.19 6.8
Unit Services ('000) 26.67 24.31 9.7 103.80 95.88 8.3
Cargo ('000 tonnes) 357.80 351.43 1.8 1,463.09 1,504.64 (2.8)
Gross Meals Produced ('M) 6.94 6.70 3.6 28.26 26.50 6.6
Unit Meals Produced ('M) 5.37 5.26 2.1 21.85 20.72 5.5
All operating metrics grew y-o-y in 4Q FY12/13
• The above aviation operating data cover Singapore operations only.
• With the exception of unit and gross meals produced, all data include LCC operations.
• Unit services in 9M11/12 has been restated due to the change in the weightage factor for certain aircraft
type. As a result, the restated figure is higher than what was previously announced for 9M11/12.
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Dividends
Cents FY12/13 FY11/12
Interim Dividend 5.0 5.0
Proposed Final Dividend* 6.0 6.0
Total - Ordinary Dividends 11.0 11.0
Proposed Special Dividend* 4.0 15.0
Proposed Total Dividends 15.0 26.0
Payout Ratio (%) - Ordinary Dividends 66.2% 71.4%
Payout Ratio (%) - Total Dividends 90.3% 168.8%
Book closure date is 7 August 2013 and payment is on 16 August 2013
* Subject to shareholder’s approval at AGM to be held on 26 July 2013
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Dividend Payout Ratio
180
160
168.8
140
%
120
100
80
98.4
34.7
97.4
90.3
24.1
60
40
20
73.5 78.6
63.7
71.4 66.2
0
FY08/09 FY09/10 FY10/11 FY11/12 FY12/13
Ordinary dividend
Special dividend
22

Group Business Review
23

Recent Contracts
Singapore – Gateway Services
• Ground handling for Saudi Arabian Airlines and Turkish Airlines.
• Ground and cargo handling for Air India, Air India Express,
Jet Airways, Lufthansa Cargo/AeroLogic, Sichuan Airlines,
Swiss International Air Lines, United Airways and Xiamen Airlines.
24

Recent Contracts
Singapore – Food Solutions
• Inflight catering services for All Nippon Airways.
• Catering and F&B services for Singapore Sports Hub.
Overseas
• TFK: inflight catering services for Air France.
• SATS HK: ground handling services for Air Seychelles.
25

Business and Corporate Updates
Key Management Appointments
• Appointed Mr Alexander Charles Hungate as Executive Director
effective 16 July 2013 and subsequently as President & CEO effective
1 January 2014.
• Appointed Mr Cho Wee Peng as CFO effective 1 July 2013.
Accolades
• SATS won a distinction award at the inaugural Human Capital
Breakthrough Award for being one of Singapore’s boldest and most
innovative companies in the field of people management.
• AISATS Bangalore Cargo won the “Air Cargo Terminal Operator of the
Year in India” for second consecutive year at the Indian Supply Chain
and Logistics Summit and Excellence Awards 2013.
26

Business and Corporate Updates
Accolades (continued)
• AISATS Bangalore Ground Handling clinched Dragonair’s networkwide
awards including “Best Station for On-Time Performance”,
“Best Station Self Service Kiosk Check-In” and “Best Ground
Handling Agent for Ramp Services”.
• Asia Pacific Star received a Special Commendation Award from
Tiger Airways for migration of operations from Budget Terminal to
Terminal 2.
• MacroAsia Catering Services received the “2012 Silver Award for
Catering” from Dragonair for outstanding and reliable catering
services.
• Asiana Airlines presented its Singapore station, which is supported
by SATS Catering, with the “Best Improvement of 2012 Award”.
27

Outlook
28

Outlook
The continued growth of passenger traffic at Singapore Changi Airport
and the robust intra-Asia traffic will provide opportunities for the
Group’s gateway and food businesses. Air freight demand, however, is
anticipated to remain weak.
The continuing manpower policies in Singapore and their impact on
operating costs remain major challenges for SATS.
The Group continues to seek new growth areas by expanding its
offerings and regional footprint.
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END
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