Sats Ltd · SGX:S58
Sats — Merger or Acquisition (February 2014)
12 slides from Sats's merger presentation, Feb 19, 2014
Slide 1: Growing Scale in Indonesia
Growing Scale in Indonesia Alex Hungate President & CEO 19 February 2014
Slide 2: Forward looking statements
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
Slide 3: Transaction summary
Transaction summary SATS, through our subsidiaries, has acquired 41.65% or 869,220,800 ordinary shares in PT Cardig Aero Services (CAS) from Puncak Cemerlang B.V. and Bintang Nusantara Limited Purchase consideration is IDR1,108B (approx. S$118.3M) or IDR1,275 per CAS share: Implied premium of
Slide 4: CAS - leading Indonesian gateway, food service provider
CAS - leading Indonesian gateway, food service provider 30 years 23 17 In business1 Cities Airports CAS’ geographic footprint Medan Sesayap, Terakan 15M Pekanbaru Berau Manado Batam Passengers2 Muara Teweh Padang Balikpapan Batu Kajang Bindang 55K Palembang Asam-Asam Makasar Timika Flights Handled2
Slide 5: About 75% of CAS' revenue comes from JAS
About 75% of CAS’ revenue comes from JAS Breakdown of CAS’ revenue1 CASC, PMAD and Others 20% JAE 7% JAS 73% Key CAS subsidiaries Business PT Jasa Angkasa Semesta (JAS) Passenger services, air freight and ramp handling PT JAS Aero Engineering (JAE) Aircraft line maintenance and technical ramp PT Car
Slide 6: Opportunity to grow scale, improve connectivity
Opportunity to grow scale, improve connectivity 3 2 Adding scale to a successful 1 Indonesia – a partnership at JAS priority market for SATS Compelling fit with SATS’ core business 6
Slide 7: Compelling fit with SATS' core business
1. Compelling fit with SATS’ core business SATS CAS Passenger services Businesses Air freight handling Common Ramp handling Inflight catering Institutional catering Food distribution and logistics Aircraft line maintenance Businesses Adjacent Aviation laundry Facility management Aviation security Cr
Slide 8: Indonesia – a priority market for SATS
2. Indonesia – a priority market for SATS Growing middle-class will drive demand for trade and travel, and demand for safe, cosmopolitan food Air traffic growth1 Food consumption2 CAGR 2012 – 2016E (in USD billion) Passenger 7.9% 339 Cargo 5.3% 191 Domestic passenger traffic3 (in million) 80 60 2010
Slide 9: Adding scale to a successful partnership at JAS
3. Adding scale to a successful partnership at JAS Revenue Operating profit (in IDR billion) (in IDR billion) 800 300 700 250 600 200 150 500 100 400 50 300 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2004 2005 2006 2007 2008 2009 2010 2011 2012 Operating margins 34.6% 30.1% 28.9% 30.9% 27.4 perc
Slide 10: Financial effects of proposed transaction
Financial effects of proposed transaction (for illustrative purpose only) FY2012-13 SATS Group Before acquisition After acquisition1 (As reported) (Pro forma) Pro forma Assuming acquisition had been effected on 1 April 2012: PATMI (S$M) 184.8 184.9 Earnings per Share 16.6 16.6 (Singapore cents) Assu
Slide 11: CAS has posted top and bottom-line growth
CAS has posted top and bottom-line growth CAS’ Revenue, Operating Profit and PATMI profile (in IDR billion) Pro forma 964 745 558 243 186 127 47 64 77 9M FY2011 9M FY2012 9M FY2013 Revenue Operating Profit PATMI CAGR 31% 38% 28% Source: CAS’ announcements on its financial performance for the nine mo
Slide 12: Q&A
Q&A 12