Sats ASA · OSL:SATS
Sats ASA — Q1 FY2013/14 Earnings Presentation
21 slides from Sats ASA's earnings presentation, Jul 25, 2013
Slide 1: 1Q FY13/14 Performance Review
1Q FY13/14 Performance Review 25 July 2013
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: Agenda
Agenda • Financial highlights • Group financial review • Group business review • Outlook 3
Slide 4: 1Q13/14 Highlights
1Q13/14 Highlights Revenue • Marginal revenue decline due to lower contribution from food (-5.6%), offset partially by higher gateway contribution (+7.9%). $434.5m -0.8% • Drop in food solutions revenue due mainly to TFK which has been impacted by weaker Yen and continued decline in load factor of C
Slide 5: 1Q13/14 Financials
1Q13/14 Financials $M 1Q13/14 1Q12/13 % Change Revenue 434.5 437.9 (0.8) Expenditure (393.8) (398.6) (1.2) Operating Profit 40.7 39.3 3.6 EBITDA 60.1 61.9 (2.9) Share of Results of 12.5 11.7 6.8 Associates/JVs, Net of Tax Impairment of Assets Held for Sale (1.7) - n.m. PBT 50.9 50.7 0.4 PATMI 46.2 4
Slide 6: Q-o-Q Highlights
Q-o-Q Highlights $M 1Q13/14 4Q12/13 3Q12/13 2Q12/13 1Q12/13 Revenue 434.5 449.0 470.6 461.5 437.9 % Change in Revenue -3.2% -4.6% 2.0% 5.4% 1.1% Expenditure (393.8) (394.9) (423.8) (409.4) (398.6) Operating Profit 40.7 54.1 46.8 52.1 39.3 % Change in Operating Profit -24.8% 15.6% -10.2% 32.6% -18.6%
Slide 7: Financial Indicators
Financial Indicators Change % 1Q13/14 1Q12/13 (ppt) Operating Margin 9.4 9.0 0.4 EBITDA Margin 13.8 14.1 (0.3) PBT Margin 11.7 11.6 0.1 PATMI Margin 10.6 9.4 1.2 Underlying Net Margin 11.0 9.4 1.6 % Cents 1Q13/14 1Q12/13 Change EPS Based on Net Profit 4.1 3.7 10.8 Attributable to Shareholders 30-Jun
Slide 8: Group Segmental Revenue
Group Segmental Revenue $M 1Q13/14 1Q12/13 % Change By Business: Gateway Services 167.9 155.6 7.9 Food Solutions 265.2 280.9 (5.6) Corporate 1.4 1.4 - Total 434.5 437.9 (0.8) By Industry: Aviation 354.0 361.6 (2.1) Non-Aviation 79.1 74.9 5.6 Corporate 1.4 1.4 - Total 434.5 437.9 (0.8) By Geographica
Slide 9: Group Expenditure – 1Q13/14
Group Expenditure – 1Q13/14 $M 1Q13/14 1Q12/13 % Change Staff Costs 198.0 194.1 2.0 Cost of Raw Materials 87.8 90.3 (2.8) Licensing Fees 19.3 18.7 3.2 Depreciation & Amortisation 19.8 23.2 (14.7) Company Premise & Utilities 29.1 31.5 (7.6) Other Costs 39.8 40.8 (2.5) Group Expenditure 393.8 398.6 (1
Slide 10: Associates/JVs Performance by Business – Based on SATS’ Shareholding
Associates/JVs Performance by Business – Based on SATS’ Shareholding* $M 1Q13/14 1Q12/13 % Change Turnover 85.4 78.1 9.3 Gateway Services 67.4 60.5 11.4 Food Solutions 18.0 17.6 2.3 EBITDA 20.7 20.6 0.5 Gateway Services 17.8 18.4 (3.3) Food Solutions 2.9 2.2 31.8 EBITDA Margin (%) 24.2 26.4 (2.2) pp
Slide 11: Associates/JVs Performance by Region – Based on SATS’ Shareholding
Associates/JVs Performance by Region – Based on SATS’ Shareholding* $M 1Q13/14 1Q12/13 % Change Turnover 85.4 78.1 9.3 West Asia 20.3 16.2 25.3 North Asia 47.4 46.2 2.6 SEA & Australasia 17.7 15.7 12.7 EBITDA 20.7 20.6 0.5 West Asia 4.3 4.1 4.9 North Asia 9.4 10.5 (10.5) SEA & Australasia 7.0 6.0 16
Slide 12: Proforma Segmental Revenue (Include Proportionate Revenue from Assocs/JVs)
Proforma Segmental Revenue (Include Proportionate Revenue from Assocs/JVs*) By Business By Industry By Geography Corp Corp Others 0.2% 0.2% 3.4% Assoc/JVs 16.4% Non- 1Q13/14 Aviation 15.2% Gateway Food Services Japan Solutions 45.3% 12.6% Singapore 54.5% Aviation 67.6% 84.6% Corp Corp Others 0.3% 0.
Slide 13: Group Balance Sheet
Group Balance Sheet $M As at 30 Jun 13 As at 31 Mar 13 Total Equity 1,559.3 1,500.2 Long-term Loans 105.0 108.7 Other Long-Term Liabilities 80.8 84.3 Current Liabilities 326.2 310.1 Total Equity & Liabilities 2,071.3 2,003.3 Fixed Assets & Investment Property 594.1 603.5 Associated Companies & JVs 3
Slide 14: Group Cash Flow Statement
Group Cash Flow Statement $M 1Q FY13/14 1Q FY12/13 Difference Net Cash from Operating Activities 71.8 64.1 7.7 Net Cash generated from/(used in) Investing Activities 0.1 (1.0) 1.1 Net Cash generated from/(used in) Financing Activities 16.3 (2.7) 19.0 Net increase in Cash & Cash Equivalents 88.2 60.4
Slide 15: Operating Statistics for Singapore Aviation Business
Operating Statistics for Singapore Aviation Business 1Q13/14 1Q12/13 % Change Passengers Handled ('M) 10.61 10.02 5.9 Flights Handled ('000) 32.37 29.69 9.0 Unit Services ('000) 26.85 24.64 9.0 Cargo ('000 tonnes) 370.41 358.92 3.2 Gross Meals Produced ('M) 6.44 6.99 (7.9) Unit Meals Produced ('M) 5
Slide 16: Group Business Review
Group Business Review 16
Slide 17: Recent Contracts
Recent Contracts Singapore • Ground handling for British Airways • Ground and cargo handling for Regent Airways and Shanghai Airlines • Inflight catering services for Sichuan Airlines Overseas • TFK: inflight catering services for Alitalia • SATS HK: ground handling services for Cambodia Angkor Air
Slide 18: Accolades
Accolades • SATS was the Bronze Winner for “Excellence in Mature Workforce Practices” at the Human Resources Excellence Award 2013. • SATS won awards in the Leading HR Practices in Learning & Human Capital Development, and Talent Management, Retention & Succession Planning (Special Mention) categori
Slide 19: Outlook
Outlook 19
Slide 20: Outlook
Outlook Recent operating indicators from Singapore Changi Airport suggested a moderation in passenger traffic growth and continued downward trend for airfreight. These trends are expected to persist in the near term for the aviation industry, in view of ongoing uncertainty in the global economy and
Slide 21: END
END 21