Sats Ltd · SGX:S58
Sats — Q1 FY2023 Earnings Presentation
27 slides from Sats's earnings presentation, Jul 22, 2022
Slide 1: 1Q FY23 Performance Review
<Public> 1Q FY23 Performance Review 22 July 2022 <Public>
Slide 2: Forward Looking Statement – Important Note
<Public> Forward Looking Statement – Important Note The following presentation contains forward-looking statements by the management of SATS Ltd. (“SATS”), relating to financial and market trends for future periods. Some of the statements contained in this presentation that are not historical facts
Slide 3: Agenda
<Public> Agenda 1 Business Update 2 Group Financial Review 3 Outlook 4 Q&A 3 <Public>
Slide 4: 1Q FY23 and QoQ Operating Statistics
<Public> 1Q FY23 and QoQ Operating Statistics Flights Handled Meals Served Passengers Handled Cargo Tonnage Number of Employees In Thousands In Millions In Millions In ‘000 Tonnes Number +233% +6.6% +951% +53.2% +33.0% 46.4 13.7 14.6 9.7 593.3 11.0 387.4 12.9 13.9 0.9 Group Group Group Group Group Q
Slide 5: Travel Recovery Underway
<Public> Travel Recovery Underway IATA Key highlights of IATA’s projections: IATA Monthly Statistics (May 2022) • Passenger traffic will reach 83% of pre- pandemic levels in 2022. • Global Cargo volumes are expected to set a record high of 68.4 million tonnes in 2022. • Slower growth expected in 202
Slide 6: Enhancing Operational Excellence
<Public> Enhancing Operational Excellence Food Gateway Warehouse Management COSYS+ Supply & Demand Digital Data Lake Planning Core Tool ERP SOMS E-Procurement Success Tool Factors Invested in innovation, automation and digitalisation to achieve productivity and scale efficiency. 6 <Public>
Slide 7: Growing Capabilities in Key Markets Overseas
<Public> Growing Capabilities in Key Markets Overseas Food Gateway SATS India Expanding network Tianjin Kitchen capabilities in Saudi Arabia 7 <Public>
Slide 8: Seizing Growth Opportunities to Broaden Revenue Streams
<Public> Seizing Growth Opportunities to Broaden Revenue Streams Food Gateway Twyst AAT Cargo Terminal SATS Security Hawker Fare Services RTE Meals 8 <Public>
Slide 9: Group Financial Review
<Public> Group Financial Review <Public>
Slide 10: Executive Summary: 1Q FY23 Performance
<Public> Executive Summary: 1Q FY23 Performance • Revenue increased 36.2% or $99.9M to $375.5M against 1Q last year. • Compared to 4QFY22, revenue increased by 25.4% or $76.0M. • 1QFY23 PATMI loss = $22.5M against 1QFY22 gain of $6.4M. • Without government reliefs, core PATMI for 1QFY23 would have b
Slide 11: 1Q FY23 Highlights
<Public> 1Q FY23 Highlights Commentary S$'M 1Q FY23 1Q FY22 YoY var YoY var % Revenue 375.5 275.6 99.9 36.2 • Group revenue improved by $99.9M (36.2%) as Food and Gateway recorded higher revenue by 26.4% and 49.1% at the back of aviation recovery and AAT consolidation. OPEX 409.8 272.1 (137.7) (50.6
Slide 12: 1Q FY23 Quarterly Trending
<Public> 1Q FY23 Quarterly Trending + $99.9M - $28.9M Revenue PATMI 375.5 6.4 6.8 5.1 2.1 275.6 293.9 307.8 299.5 PATMI (22.5) 1Q22 2Q22 3Q22 Revenue 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 EBITDA - $19.0M Core PATMI - $28.9M 32.9 32.8 31.7 13.9 6.4 6.8 5.1 EBITDA (3.2) Core PATMI (26.8) (22.5) 1Q22 2Q22
Slide 13: Group Segmented Revenue – 1Q FY23
<Public> Group Segmented Revenue – 1Q FY23 Revenue 1Q FY23 % 1Q FY22 % Change (%) By Business: Gateway 189.3 Food Solutions 186.2 49.6 147.3 53.4 26.4 50% Food Gateway Services 189.3 50.4 127.0 46.1 49.1 186.2 50% Others 0.0 0.0 1.3 0.5 (100.0) Others Total 375.5 100.0 275.6 100.0 36.2 0.0 0% By Ind
Slide 14: 1Q FY23 Group Expenditure
<Public> 1Q FY23 Group Expenditure $137.7M 50.6% +$94.7M +$10.7M +$3.0M +$2.3M +$8.5M +$18.5M 82.6% 35.0% 4.1% 38.3% 53.1% 58.0% Premise Costs OOE 209.3 6% 12% Licence Fees 2% 1Q FY23 Staff Costs 114.6 51% Raw S$409.8M Materials 76.0 73.0 19% 50.4 41.3 30.6 31.9 24.5 D&A 16.0 8.3 6.0 10% Staff Costs
Slide 15: Associates and Joint Ventures (AJVs)
<Public> Associates and Joint Ventures (AJVs) OVERVIEW S$’M 1Q FY23 1Q FY22 % change • 1Q SSOR increased 9.6% YoY. SATS Share of Revenue 85.6 78.1 9.6 (SSOR) • Share of earnings increased by $8.1M to $6.9M Share of earnings / (losses) 6.9 (1.2) n.m. compared to last year. Segmental SSOR • Greater Ch
Slide 16: 1Q FY23 Revenue and PATMI by region
<Public> 1Q FY23 Revenue (Consol & SSOR) and PATMI by region Consol YoY SSOR YoY PATMI YoY Revenue 1Q FY23 % 1Q FY23 1Q FY22 % 1Q FY23 % Singapore 301.4 26.4 303.0 240.6 25.9 (18.8) n.m. Japan 18.7 18.9 24.9 16.6 49.6 (2.7) (3.8) Asean (ex-SG) 10.8 366.8 33.4 18.0 85.8 6.1 n.m. Greater China 37.8 14
Slide 17: FY23 Group Financial Position
<Public> FY23 Group Financial Position # # Components of the debt: MTN ($300M), term loans ($213M) and ROU ($327M) * Before taking into account leases (LY net cash: $275M) **FY23 denotes @ 30 Jun 22 and FY22 denotes @ 31 Mar 22 n.m. – not meaningful <Public> 17
Slide 18: Group Balance Sheet
<Public> Group Balance Sheet $M AS AT 30 JUN 22 AS AT 31 MAR 22 Change % Commentary Decrease $18.5M due to reduction in investment in associates as a Non-Current Assets 1,977.8 1,996.3 (0.9) result of dividend received partially offset by share of profit during the quarter. Increased $71.9M mainly d
Slide 19: Group Cash Flow Statement
<Public> Group Cash Flow Statement $M FY23 FY22 Difference Net cash (used in)/from operating activities (4.9) 26.9 (31.8) Net cash (used in)/from investing activities (13.0) 0.5 (13.5) Capital expenditure (24.7) (19.0) (5.7) Dividends from associates/joint ventures 10.6 18.8 (8.2) Investment in join
Slide 20: Outlook
<Public> Outlook <Public>
Slide 21: Outlook
<Public> Outlook IATA has projected that global passenger numbers will recover to 83% of pre-pandemic levels at end 2022, fuelled by pent-up demand and the lifting of pandemic restrictions in most markets. While China's zero-COVID policy continue to dampen the pace of recovery for Asia-Pacific, air
Slide 22: Appendix
<Public> Appendix <Public>
Slide 23: Group Segmented P&L – 1Q FY23
<Public> Group Segmented P&L – 1Q FY23 Food Gateway 1Q FY23 Food Gateway 1Q FY22 Others Others Solutions Services Total Solutions Services Total Revenue 186.2 189.3 0.0 375.5 147.3 127.0 1.3 275.6 EBIT (Loss)/profit (17.3) (17.4) 0.4 (34.3) (11.5) 11.0 4.0 3.5 Net finance expense (0.9) (1.6) (1.4) (
Slide 24: Summary of key associates / joint ventures
<Public> Summary of key associates / joint ventures 1Q FY23 SATS share of revenue (SSoR) Business Asean Greater Food SSOR No. Associates/JVs Total Singapore Japan India Others Unit (ex-SG) China Solutions 33% 1 Taj SATS Air Catering/TMFK Food 12 - - - - 12 - 2 Evergreen Sky Catering Food 3 - - - 3 -
Slide 25: Summary of key associates / joint ventures
<Public> Summary of key associates / joint ventures 1Q FY22 SATS share of revenue (SSoR) No. Associates/JVs Business Total Singapore Japan Asean Greater India Others SSOR Unit (ex-SG) China Food Solutions 17% 1 Taj SATS Air Catering/TMFK Food 5 - - - - 5 - 2 Evergreen Sky Catering Food 2 - - - 2 - -
Slide 26: Q&A
Q&A Shaping)» the Future
Slide 27: 1Q FY23 Performance Review
<Public> 1Q FY23 Performance Review 22 July 2022 <Public>