Sats Ltd · SGX:S58
Sats — Shareholder Meeting (July 2023)
14 slides from Sats's shareholder meeting presentation, Jul 21, 2023
Slide 1: SATS 50th Annual General Meeting
<Public> 21 July 2023 SATS 50th Annual General Meeting RESILIENT VALUE-DRIVEN GROWTH <Public>
Slide 2: Sustained travel growth through FY23
<Public> Sustained travel growth through FY23 with further upsides expected in FY24 IATA expects 2023 global traffic (RPK) to reach 88% in 2023 and 100% in 2024 of pre- pandemic levels Prior period Current period *All statistics refer to Group (SATS and subsidiaries) unless indicated otherwise 2 <Pu
Slide 3: Scaling Sustainably
<Public> Scaling Sustainably DEVELOP SMART REDUCE FOOD AND NUTURE SKILLS FOR INFRASTRUCTURE THE FUTURE THEMES PACKAGING WASTE Convert 100% of ground support Halve food waste intensity in Increase average value-add per employee equipment in Singapore hub to cleaner Singapore operations from 2021 base
Slide 4: Improving Financials (YoY)
<Public> Improving Financials (YoY) REVENUE (S$’M) PATMI (S$’M) 1,941.2 248.4 168.4 (78.9) 20.4 (26.5) 1,828.0 2 years CAGR: 1,758.3 35% 241.4 1,176.8 970.0 162.9 FY19 FY20 FY21 FY22 FY23 (32.9) EBITDA (S$’M) 383.8 Underlying profit (141.1) 355.6 2 years CAGR: 55% (265.8) 173.2 FY19 FY20 FY21 FY22 F
Slide 5: Improving Financials (QoQ)
<Public> Improving Financials (QoQ) REVENUE (S$’M) PATMI (S$’M) 2.1 (22.5) (9.9) 0.5 5.5 475.7 478.1 429.0 375.5 4.1 299.5 (2.1) (6.0) 4Q22 1Q23 2Q23 3Q23 4Q23 EBITDA (S$’M) 70.0 25.0% (28.9) 58.7 60.0 55.2 20.0% 50.0 45.4 15.0% 40.0 (42.5) 12.3% 30.0 10.6% 11.6% 10.0% 13.9 4Q22 1Q23 2Q23 3Q23 4Q23
Slide 6: Seizing Opportunities: Restoring Profitability and Positioning for Growth
<Public> SEIZING OPPORTUNITIES: RESTORING PROFITABILITY AND POSITIONING FOR GROWTH <Public>
Slide 7: Aviation Industry Set for Sustained Growth
<Public> Aviation Industry Set for Sustained Growth Near term: • IATA expects 2023 global passenger traffic to reach 88% and 100% of pre-pandemic levels in 2023 and 2024 respectively. • IATA expects global air cargo traffic to narrow to 4% in 2023, Source: ICAO versus 8% in 2022 as recovery momentum
Slide 8: Executing Twin-Engine Growth Strategy
<Public> Executing Twin-Engine Growth Strategy SATS is positioning for growth and strengthening our core pursuing industry leadership in international markets. 2021 2022 2023 Thailand Bengaluru AAT – Increased Acquisition of (Acquisition of ground breaking stake & consolidation; WFS Mitsui MOU Noida
Slide 9: Cost and Yield Management Through Operational Excellence
<Public> Cost and Yield Management Through Operational Excellence Driving productivity to improve Achieving scale benefits Improving yield through gain operating margins: through centralised sharing and right pricing: production • Driving productivity as a service • Tackling inflationary cost driven
Slide 10: Enhancing Free Cash Flow
<Public> Enhancing Free Cash Flow Achieve sustainable and recurring savings to reduce leverage: • Refinanced WFS’ 3 series of Senior Secured Notes due 2027 - annual savings of S$40m in interest costs. • Ongoing Treasury management to reduce cost of borrowings. • Proactive monitoring of investments t
Slide 11: Managing Cash and Optimising Debt Levels
<Public> Managing Cash and Optimising Debt Levels Cash Reserves Debt-Equity Ratio S$374M (Last year: S$786M) 0.59 (Last year: 0.46) Decline in cash mainly due to acquisition of WFS. Debt raised €500M, and Rights raised S$784M. EQUITY (S$’M) DEBT (S$’M) DEBT-EQUITY RATIO 1,478.4 2,514.8 0.59 0.46 1,8
Slide 12: Driving Synergies of the Expanded Gateway Services Network
<Public> Driving Synergies of the Expanded Gateway Services Network • Cross-sell and develop new value-added & end-to-end solutions for our customers • Gain efficiencies in global procurement, automation and digitalisation • Leverage network to enhance global eCommerce cargo partnerships • Reinforce
Slide 13: SATS is poised for a New Era of Growth
<Public> SATS is poised for a New Era of Growth • WFS has transformed SATS from a Singapore-centric company to a global gateway services provider serving customers in more than 210 locations in 27 countries. • The enlarged SATS Group is now more resilient and has another pathway to growth. • We have
Slide 14: Thank you
<Public> Thank you SATS 50th Annual General Meeting <Public>