Sats ASA · OSL:SATS
Sats ASA — Q1 FY2009/10 Earnings Presentation
29 slides from Sats ASA's earnings presentation, Jul 27, 2009
Slide 1: 1QFY2009/10 Performance Review
27 July 2009 1QFY2009/10 Performance Review 1
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: 1Q09/10 Highlights
1Q09/10 Highlights • Group revenue grew 44% to $351.7M on consolidation of SFI. • SFI’s contribution to Group revenue was $132.9M. Compared to a year ago, its revenue declined almost 20% but its operating profit margin increased to 8%. • Aviation revenue contracted 12% in 1Q09/10, on a weaker indust
Slide 4: 1Q09/10 Financials
1Q09/10 Financials • Revenue contribution from SFI : $132.9M • Aviation revenue fell 12% in tandem with weak aviation sector • Higher Associates’ profits due to one-off VAT provision taken in 1Q08/09 and better performance from PT JAS and BGS PATMI grew 17% on the back of higher revenue and improved
Slide 5: Q-o-Q Highlights
Q-o-Q Highlights 4Q reflected 2 months of SFI’s contribution and 6 months of jobs credit scheme benefit 5
Slide 6: Revenue Trend
— Revenue Trend Moving Annual Total - Revenue 1800 1700 5 1600 4 1500 5 1400 4 1300 4 1200 1100 1000 900 800 $M 4Q07/08 1908/09 2Q08/09 3008/09 4008/09 1009/10 200910 3a09N0 4009/10 sats
Slide 7: EBITDA Trend
UO «<<< ° &z| EBITDA Trend Moving Annual Total - EBITDA 320 300 280 260 240 220 200 180 160 140 $M 400708 100809 2008/08 3008/8 400809 100910 200910 3Cc09/0 4008/10 sals o_ “,
Slide 8: Profit Trend
oo ttt" Profit Trend Moving Annual Total - Net Profit (PATMI) 4Q07/08 1Q0809 2008/09 3Q05/09 4006/09 1009/10 2009/10 3@09/10 4009/10 sats
Slide 9: Financial Indicators
Financial Indicators 1009/10 1008/09 Change Operating Margin 12.4 15.7 (3.3) EBITDA Margin 19.0 21.1 (2.1) PBT Margin 14.7 18.1 (3.4) Net Margin 11.6 14.1 (2.5) 1009/10 10089 % Change Earnings Per Share (cents) 3.7 3.2 15.6 As at 30 Jun 09 | As at 31 Mar 09 Net Asset Value Per Share ($) 1.35 1.29 De
Slide 10: Group Segmental Revenue
Group Segmental Revenue nm: not meaningful 10
Slide 11: Segmental Revenue by Business – 1Q09/10
Segmental Revenue by Business – 1Q09/10 Addition of SFI contributed to Food Solutions revenue growth Airport Services: ground and cargo handling, aviation security, aircraft interior cleaning and cargo delivery and management Food Solutions: inflight catering, food trading & logistics, industrial ca
Slide 12: Segmental Revenue by Industry – 1Q09/10
Segmental Revenue by Industry – 1Q09/10 Addition of SFI contributed to Non-Aviation revenue growth Non-Aviation Revenue encompasses revenues from SFI, Country Foods and CF Macau Figures in ( ) refer to composition for 1Q08/09 12
Slide 13: Segmental Revenue by Geographical Location – 1Q09/10
Segmental Revenue by Geographical Location – 1Q09/10 Daniels Group’s contribution led the growth in Overseas revenue Figures in ( ) refer to composition for 1Q08/09 13
Slide 14: Group Expenditure
Group Expenditure • Staff costs include $6.1M from jobs credit scheme benefit • Amortisation of intangibles: $4.7M 14
Slide 15: Associates’ Results – Proportionate Accounting
Associates’ Results – Proportionate Accounting ($M) 1Q09/10 1Q08/09 % Change • SEA: JAS’ better Turnover by Business 57.3 61.3 (6.5) performance due to Airport Services 41.0 43.7 (6.2) higher business volumes Food Solutions 16.3 17.6 (7.4) • North Asia: BGS’ cost Turnover by Region 57.3 61.3 (6.5) r
Slide 16: Associates’ Results – PBT Contribution
Associates’ Results – PBT Contribution ($M) 1Q09/10 1Q08/09 % Change • Higher PBT from PBT by Business 9.1 4.4 106.8 Associates due to one- Airport Services 7.2 2.4 200.0 off VAT provision made Food Solutions 1.9 2.0 (5.0) in 1Q08/09 and better performance reported PBT by Region 9.1 4.4 106.8 by JAS
Slide 17: Associates’ Contribution – Change in PBT
Associates’ Contribution – Change in PBT 1Q09/10 Change ($M) JAS : Higher profit due to higher INFLIGHT CATERING JVs business volumes BAIK Beijing, China - MCS Macau, China - BGS : Reduction in staff costs MEC Philippines 0.1 contributed to improved MIC Maldives 0.3 performance TMIK Chennai, India (
Slide 18: Group Balance Sheet
Group Balance Sheet ($M) As at 30 Jun 09 As at 31 Mar 09 • Cash and cash Total Equity 1,472.9 1,416.3 equivalents include Long-Term Loans 15.0 16.9 deposits of $171.7M Other Long-Term Liabilities 127.7 124.4 placed with SIA Current Liabilities 481.5 492.7 Total Equity & Liabilities 2,097.1 2,050.3 F
Slide 19: Group Cash Flow
Group Cash Flow ($M) 1Q09/10 1Q08/09 Change Cash & Cash Equivalents at 1 April 275.7 700.3 (424.6) Net Cash from Operating Activities 84.3 83.8 0.5 Net Cash from / (used in) Investing Activities 23.9 (1.6) 25.5 Net Cash (used in) / from Financing Activities (17.9) 0.6 (18.5) Net increase in Cash & C
Slide 20: Group Costs & Productivity Ratios
Group Costs & Productivity Ratios 1Q09/10 1Q08/09 % Change Staff Costs as % Total Costs 40.4% 53.5% (13.1) pts VA per $ Employee Cost 1.70 1.64 3.7 20
Slide 21: Operating Statistics for Aviation Business
Operating Statistics for Aviation Business ($M) 1Q09/10 1Q08/09 % Change Passengers Handled 7.51 7.92 (5.3) Flights Handled 23.52 22.10 6.4 Unit Services (‘000) 19.38 20.81 (6.9) Cargo (‘000 tonnes) 325.81 396.27 (17.8) Gross Meals Produced (‘M) 5.44 6.48 (16.0) Unit Meals Produced (‘M) 4.31 5.19 (1
Slide 22: Aviation Contracts Secured in 1Q09/10
Aviation Contracts Secured in 1Q09/10 • Air Mauritius – catering • Jetstar Airways International – catering • Saudi Arabian Airlines – cargo and ground handling • Singapore Airlines – ground handling and catering • Tiger Airways – ground handling 22
Slide 23: Food Solutions Contracts Secured in 1Q09/10
Food Solutions Contracts Secured in 1Q09/10 • Country Foods 9 Signed a 3 + 2 year contract with casino resort, Altira Macau (formerly known as Crown Macau), to serve employee meals effective 15 July 2009 9 Awarded a 3 + 2 year contract by St Andrew's Community Hospital to provide patient catering se
Slide 24: SFI Integration
SFI Integration • Integration in progress since April 2009 • Initial identification of cost-savings: $6.5M p.a. • Cost savings realised to-date: >$2.6M p.a. • Initial areas identified for integration include: 9 Bakery, butchery, and vegetables and fruits processing ops 9 Procurement 9 Corporate func
Slide 25: Costs Management
Costs Management • Recovery in aviation sector not imminent, aviation profits will remain weak • Cost reduction measures implemented to-date: 9 Minimise overtime and expenses claims, cut capacity in cargo operations, increase efficiency in workforce deployment 9 Trim workforce via natural attrition
Slide 26: Costs Management
Costs Management • Further review to achieve sustainable cost levels: 9 Recommend general pay freeze 9 Reduce wage levels by reviewing total compensation policies 9 Align employee benefits to practices of similar companies in same industries • Management to work collaboratively with the unions 26
Slide 27: Outlook
Outlook The addition of SFI will contribute positively to the Group’s performance as well as open new avenues of growth in the food industry. Despite some emerging signs that the Singapore economy is en route to recovery albeit patchy and slow, demand in the aviation sector remains soft. Trading liq
Slide 28: In Summary…
In Summary… • New opportunities avail in the area of food while long-term outlook of aviation sector remains positive • Continue to drive costs down to sustainable levels • Continue to drive growth strategy to strengthen Airport Services and Food Solutions businesses • Remains steadfast in integrati
Slide 29: sals
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