Sats ASA · OSL:SATS
Sats ASA — FY2015/16 Earnings Presentation
29 slides from Sats ASA's earnings presentation, May 23, 2016
Slide 1: Strategy and FY15/16 Performance
Strategy and FY15/16 Performance 23 May 2016
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 • Feeding and Connecting Asia • FY15/16 Financial Performance • Outlook & Growth Opportunities 3
Slide 4: Feeding and Connecting Asia
Feeding and Connecting Asia 4
Slide 5: Productivity, Connectivity, Scale
Productivity Connectivity Scale
Slide 6: Singapore Aviation Operating Statistics
Singapore Aviation Operating Statistics Flights Handled ('000) Passengers Handled ('M) 140 46 135 44 130 42 125 40 120 38 115 110 36 105 34 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 6
Slide 7: Singapore Aviation Operating Statistics
Singapore Aviation Operating Statistics Gross Meals* ('M) Cargo/Mail Processed 1650 29 ('000 tonnes) 1600 28 1550 27 1500 1450 26 1400 25 1350 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 * Gross meals data do not include low-cost carrier operations 7
Slide 8: Improving PATMI and PATMI margin
Improving PATMI and PATMI margin 250 PATMI and PATMI margin 0.40 40 220.6 0.35 35 200 195.7 184.8 180.4 30 0.30 170.9 25 0.25 ($M) 150 (%) 0.20 20 100 13.0% 0.15 15 11.2% 10.2% 10.1% 9.1% 0.10 10 50 0.05 5 0 0 0.00 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 PATMI PATMI margin 8
Slide 9: Increasing Return on Equity
Increasing Return on Equity 16 Return on Equity 15.0% 15 14 13.7% 13 12.7% 12.8% (%) 12 11.3% 11 10 9 8 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 9
Slide 10: Growing Ordinary Dividend
Growing Ordinary Dividend Dividend Per Share 16 15 15 14 14 13 12 11 11 (cents) 10 8 6 4 4 2 0 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 Ordinary Special Proposed final dividend of 10 cents*. Total dividends to increase by 1 cent to 15 cents, estimated dividend payout of $166M. Payment of final divide
Slide 11: FY15/16 Financial Performance
FY15/16 Financial Performance 11
Slide 12: Executive Summary: FY15/16 Performance
Executive Summary: FY15/16 Performance • Group revenue was $1.7B. Excluding the food distribution revenue transferred to SATS BRF Food, and divestment of Urangan Fisheries, the Group’s underlying revenue increased by 3% • Operating margin expanded 2.4 ppt to 12.6% • PATMI improved by 12.7% to $220.6
Slide 13: Operating Statistics for Singapore Aviation Business
Operating Statistics for Singapore Aviation Business Change Change 4Q15/16 4Q14/15 (%) FY15/16 FY14/15 (%) Passengers Handled ('M) 11.72 9.67 21.2 44.88 41.60 7.9 Flights Handled ('000) 34.89 29.38 18.8 133.28 126.11 5.7 Unit Services Handled ('000) 30.08 26.27 14.5 116.57 110.00 6.0 Cargo/Mail Proc
Slide 14: FY15/16 Highlights
FY15/16 Highlights Revenue • Revenue declined 3.1%. Excluding the food distribution revenue transferred and divestment of Urangan, the Group’s underlying $1,698.2M -3.1% revenue grew by $53.2M (+3.0%) while Food Solutions’ revenue grew by $24.1M (+2.3%). Gateway Services’ revenue grew by $28.9M (+4.
Slide 15: 4Q and FY15/16 Financials
4Q and FY15/16 Financials Favourable/ Favourable/ $M 4Q15/16 4Q14/15 (Unfavourable) FY15/16 FY14/15 (Unfavourable) Change (%) Change (%) Revenue 417.6 425.1 (1.8) 1,698.2 1,753.2 (3.1) Expenditure (367.9) (380.4) 3.3 (1,483.5) (1,575.2) 5.8 Operating Profit 49.7 44.7 11.2 214.7 178.0 20.6 EBITDA 68.
Slide 16: Financial Indicators
Financial Indicators Change Change % 4Q15/16 4Q14/15 (ppt) FY15/16 FY14/15 (ppt) Operating Margin 11.9 10.5 1.4 12.6 10.2 2.4 EBITDA Margin 16.4 14.3 2.1 16.8 13.9 2.9 PBT Margin 14.5 13.6 0.9 15.6 12.8 2.8 PATMI Margin 12.1 12.1 0.0 13.0 11.2 1.8 Underlying Net Margin 12.1 12.1 0.0 12.8 11.2 1.6 Ch
Slide 17: Group Segmental Revenue
Group Segmental Revenue $M 4Q15/16 4Q14/15 Change (%) FY15/16 FY14/15 Change (%) By Business: Food Solutions 232.3 250.9 (7.4) 967.4 1,051.5 (8.0) Gateway Services 183.8 173.0 6.2 725.9 697.0 4.1 Corporate 1.5 1.2 25.0 4.9 4.7 4.3 Total 417.6 425.1 (1.8) 1,698.2 1,753.2 (3.1) By Industry: Aviation 3
Slide 18: Group Expenditure
Group Expenditure Favourable/ Favourable/ $M 4Q15/16 4Q14/15 (Unfavourable) FY15/16 FY14/15 (Unfavourable) Change (%) Change (%) Staff Costs 212.6 193.6 (9.8) 825.9 800.6 (3.2) Cost of Raw Materials 62.8 84.0 25.2 282.7 349.3 19.1 Licence Fees 16.3 18.9 13.8 68.0 78.1 12.9 Depreciation & 18.4 17.3 (
Slide 19: Associates/JVs Performance by Business
Associates/JVs Performance by Business $M 4Q15/16 4Q14/15 Change (%) FY15/16 FY14/15 Change (%) PAT 11.7 13.1 (10.7) 48.0 48.1 (0.2) Food Solutions 2.7 3.9 (30.8) 9.6 9.2 4.3 Gateway Services 9.0 9.2 (2.2) 38.4 38.9 (1.3) Dividends Received - - - 33.6 88.7 (62.1) AISATS, AAT, MIC and PT JAS together
Slide 20: Strong Balance Sheet
Strong Balance Sheet $M As at 31 MAR 16 As at 31 MAR 15 Total Equity 1,565.1 1,517.6 Long-Term Loans 0.8 89.7 Other Long-Term Liabilities 69.5 66.6 Current Liabilities 470.3 345.8 Total Equity & Liabilities 2,105.7 2,019.7 Fixed Assets & Investment Properties 530.7 558.7 Associated Companies & JVs 5
Slide 21: Group Cash Flow Statement
Group Cash Flow Statement $M FY15/16 FY14/15 Difference Net Cash From Operating Activities 273.1 236.4 36.7 Net Cash (Used In)/From Investing Activities (56.3) 58.1 (114.4) Net Cash Used In Financing Activities (157.2) (199.6) 42.4 Net Increase In Cash & Cash Equivalents 59.6 94.9 (35.3) Cash & Cash
Slide 22: Outlook and Growth Opportunities
Outlook and Growth Opportunities 22
Slide 23: Outlook
Outlook Our focus on productivity from scale and use of technology will continue to position us well to weather global economic and political uncertainties as well as intense competition. Airline load factors are improving although airline yields are still weak. Investments in technology will bring
Slide 24: Rapid middle class population growth in Asia
Rapid middle class population growth in Asia Share of Middle Class 36% 14% 66% • 66% of middle class population 2009 2030 28% will be in Asia in Europe 2030 28% 13% • Chinese middle 2009 2030 class to reach 1 2009 2030 8% 7% Asia billion by 2030 America 2009 2030 Africa Asia, is currently home to 53
Slide 25: Increased food demand in Asia
Increased food demand in Asia Food consumption in China will more than double to around US$1.48 trillion by 2020 Food demand in Asia will more than double by Indonesia will account 2020, to nearly US$3 trillion a year for 56% of the • Asia will consume nearly 80% as much food as Southeast Asian US f
Slide 26: Asia remains largest travel market over next 20 years
Asia remains largest travel market over next 20 years • Biggest aviation market, with 100M passengers expected to enter the market annually • Intra-Asia traffic will account for 62% of all traffic to, from and within Asia in 2034 Boeing CMO 2015 26
Slide 27: Building Out Across Asia and Middle East
Building Out Across Asia and Middle East MALAYSIA • Acquired 49% of Oman Brahim’s Airline Catering Holdings in February 2016 Philippines PHILIPPINES • Acquired additional 13% Malaysia interest in MacroAsia Catering Services in January 2016 to raise OMAN stake from 20% to 33% • Signed JV agreement wi
Slide 28: Building Up Into Adjacent Businesses
Building Up Into Adjacent Businesses CHINA • Formed JV with Yihai China Kerry, a subsidiary of Wilmar, to provide safe, high quality food in January 2016 SINGAPORE Singapore • Formed JV with BRF to scale up our food distribution and processing business in June 2015 SINGAPORE • Formed JV with DFASS t
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