Sats Ltd · SGX:S58
Sats — 3Q FY20 Earnings Presentation
23 slides from Sats's earnings presentation, Feb 13, 2020
Slide 1: 3Q FY20 Performance Review
3Q FY20 Performance Review 13th February 2020 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. SATS Ltd. accepts no liability whatsoever with respect to the use o
Slide 2: Forward looking statement – Important note
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 are statem
Slide 3: Agenda
Agenda 1 Executive Summary & Strategic Update 2 Group Financial Review 3 Outlook 4 Q&A 3
Slide 4: Asia's largest food and gateway services network
Asia’s largest food and gateway services network 9M FY19 9M FY20 44.8m 69.4m Passengers Handled Passengers Handled 57.2m 65.1m China Meals Served Meals Served Japan Saudi India 124,140 278,270 Arabia Oman Flights Handled Flights Handled Vietnam Philippines Malaysia Maldives 1,420k Tonnes 1,397k Tonn
Slide 5: Growth initiatives in 3Q FY20
Growth initiatives in 3Q FY20 Singapore SATS subsidiary, SATS and Sembcorp formed sustainability Country Foods, develops partnership to develop a suite of market for sustainable integrated solutions to help SATS reduce its food products through environmental footprint across several facilities. comb
Slide 6: 3Q FY20 SATS share of revenue and PATMI by region
3Q FY20 SATS share of revenue and PATMI by region Revenue YoY PATMI YoY Region 3Q FY20 3Q FY19 % 3Q FY20 % Singapore 432.6 417.3 3.7 47.1 (14.2) Japan 70.5 64.0 10.0 1.0 66.7 Asean (ex-SG) 62.6 40.9 53.0 7.6 94.5 Greater China 97.2 74.4 30.7 0.6 (80.2) India 39.1 41.0 (4.7) 2.5 (46.6) Others 14.4 22
Slide 7: Executive Summary: 3Q FY20 Performance
Executive Summary: 3Q FY20 Performance • Group revenue grew 17.6% to $545.6M • EBITDA grew 7.1% to $108.1M • PATMI decreased 13.9% to $59.3M • Share of earnings from associates/JVs fell 29.0% to $14.7M • Operating margin dropped 2.6 percentage points to 11.5% • EPS declined 0.9 cents to 5.3 cents 7
Slide 8: Group Financial Review
Group Financial Review ee ee
Slide 9: 3Q FY20 Highlights
3Q FY20 Highlights 3Q FY20 3Q FY19 Change Commentary $/ppt % • Gateway (+$23.0M), Food (+$58.4M) • Gateway: GTR consol ($23.5M) offset by lower cargo volume Revenue 545.6 464.0 81.6 17.6 and ship calls • Food: NWA (+$14.9M) & CFPL consol (+$42.3M), and offset by FASSCO deconsol • Consol effect new e
Slide 10: 9M FY20 Highlights
9M FY20 Highlights 9M FY20 9M FY19 Change Commentary $/ppt % • Gateway (+$71.0M), Food (+$80.4M) • Gateway: GTR consol ($69.0M) offset by lower cargo volume Revenue 1,508.1 1,356.5 151.6 11.2 and ship calls • Food: NWA (+$14.9M), CFPL (+$56.3M) and offset by FASSCO deconsol • Consol effect of new en
Slide 11: Financial Indicators
Financial Indicators Change Change % 3Q FY20 3Q FY19 ppt/% 9M FY20 9M FY19 ppt/% EBIT Margin 11.5 14.1 (2.6) 12.2 14.5 (2.3) PATMI Margin 10.9 14.8 (3.9) 11.6 14.6 (3.0) EBITDA Margin 19.8 21.7 (1.9) 20.7 22.2 (1.5) Return on Equity 3.6 4.3 n.m. 10.7 12.3 n.m. Basic EPS (cents) 5.3 6.2 (14.5) 15.6 1
Slide 12: Group Segmental Revenue
Group Segmental Revenue Revenue 3Q FY20 3Q FY19 Change (%) 9M FY20 9M FY19 Change (%) By Business: Food Solutions 310.8 252.4 23.1 823.2 742.8 10.8 Gateway Services 234.3 211.3 10.9 683.5 612.5 11.6 Others 0.5 0.3 66.7 1.4 1.2 16.7 Total 545.6 464.0 17.6 1,508.1 1,356.5 11.2 By Industry: Aviation 44
Slide 13: 3Q FY20 Group Expenditure
3Q FY20 Group Expenditure OOE 11% YoY Premise costs Growth 5% Licence fees $23.4M $9.8M $41.0M $0.7M $3.9M $13.0M 5% 3Q FY20 Staff costs S$483M 50% Raw materials 240.9 23% 217.5 110.4 D&A 69.4 6% 53.4 40.4 30.5 20.7 24.2 28.1 23.3 22.6 Staff Costs D&A Raw Materials Licence Fees Premise Costs OOE 3Q
Slide 14: Group Balance Sheet
Group Balance Sheet $M As at 31 DEC 19 As at 31 MAR 19 Total Equity 1,803.0 1,817.1 Other Long-Term Liabilities 388.9 202.0 Current Liabilities 448.4 389.3 Total Equity & Liabilities 2,640.3 2,408.4 Fixed Assets, ROU Assets & Investment Properties 785.0 586.8 Associates / JVs 732.8 723.9 Intangible
Slide 15: Group Cash Flow Statement
Group Cash Flow Statement $M 9M FY20 9M FY19 Difference Net Cash From Operating Activities 163.7 184.8 (21.1) Net Cash Used In Investing Activities (73.2) (46.6) (26.6) Net Cash Used In Financing Activities (225.6) (238.2) 12.6 Net decrease In Cash & Cash Equivalents (135.1) (100.0) (35.1) Cash & Ca
Slide 16: Outlook
Outlook 16
Slide 17: Outlook
Outlook The COVID-19 epidemic has caused a significant reduction in air traffic in China, with a sharp decline in passenger and cargo volumes across Asia. Depending on the duration of this epidemic, there will be a consequential impact on the short-term financial performance of SATS. We are taking p
Slide 18: Q&A
Q&A
Slide 19: Appendix
Appendix pu
Slide 20: 9M FY20 Group Expenditure
9M FY20 Group Expenditure OOE YoY 11% Growth Premise costs $65.3M $24.0M $52.4M $1.0M $13.2M $33.6M 5% Licence fees 5% 705.8 9M FY20 640.5 S$1,323M Staff costs 53% Raw materials 19% 254.3 201.9 D&A 139.5 7% 85.0 84.2 105.9 61.0 67.8 71.0 66.8 Staff Costs D&A Raw Materials Licence Fees Premise Costs
Slide 21: 9M FY20 SATS share of revenue and PATMI by region
9M FY20 SATS share of revenue and PATMI by region Revenue YoY PATMI YoY Region 9M FY20 9M FY19 % 9M FY20 % Singapore 1,247.1 1,223.9 1.9 137.8 (11.6) Japan 209.9 194.5 7.9 3.3 25.2 Asean (ex-SG) 187.7 134.7 39.3 20.5 43.3 Greater China 246.7 219.8 12.2 6.8 (42.7) India 112.6 118.6 (5.1) 4.7 (59.4) O
Slide 22: Summary of key associates / joint ventures
Summary of key associates / joint ventures 9M FY20 SATS share of revenue (SSoR) Asean Greater No. Associates/JVs Business Unit Total Singapore Japan (ex-SG) China India Others SSoR 1. Evergreen Sky Catering Food 29 - - - 29 - - 2. Taj SATS Air Catering/TMFK Food 28 - - - - 28 - Food Solutions 3. Bra
Slide 23: Summary of key associates / joint ventures
Summary of key associates / joint ventures 9M FY19 SATS share of revenue (SSoR) Asean Greater SSoR No. Associates/JVs Business Unit Total Singapore Japan (ex-SG) China India Others 1. Taj SATS Air Catering/TMFK Food 33 - - - - 33 - 2. Evergreen Sky Catering Food 29 - - - 29 - - Food Solutions 35% 3.