SATS Ltd · SGX:S58
SATS — 3Q FY2017/18 Earnings Presentation
17 slides from SATS's earnings presentation, Feb 13, 2018
Slide 1: 3Q17/18 Performance Review
3Q17/18 Performance Review 13 February 2018
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 • Executive Summary • Group Financial Review • Outlook 3
Slide 4: Executive Summary: 3Q17/18 Performance
Executive Summary: 3Q17/18 Performance • Group revenue declined 0.2% • Operating margins 14.9%, down 0.2 percentage points • 7.9% increase in share of after-tax profits from associates/JVs • PATMI grew 2.3% to $66.6M • EPS increased 0.2 cents to 6.0 cents • RoE is at 4.2%, remained flat y-o-y 4
Slide 5: Group Financial Review
Group Financial Review 5
Slide 6: 3Q17/18 Highlights
3Q17/18 Highlights Revenue • Group Revenue fell 0.2% to $439.8M. Food Solutions’ revenue declined 2.5% to $240.4M, while Gateway Services’ revenue $439.8M -0.2% grew 2.6% to $199.0M. Excluding the impact of the deconsolidation of SHK, the Group’s underlying revenue would have increased $10.3 million
Slide 7: 9M17/18 Highlights
9M17/18 Highlights Revenue • Food Solutions’ revenue declined 2.8% to $718.3M, while Gateway Services’ revenue grew 3.3% to $581.8M. Excluding the $1,301.1M -0.2% deconsolidation impact of SHK, Group revenue would have increased $16.5M or 1.3%. Operating profit • Group expenditure increased by $2.0M
Slide 8: 3Q and 9M 17/18 Highlights
3Q and 9M 17/18 Highlights Fav/(Unfav) Fav/(Unfav) $M 3Q17/18 3Q16/17 9M17/18 9M16/17 Change (%) Change (%) Revenue 439.8 440.9 (0.2) 1,301.1 1,303.6 (0.2) Expenditure (374.1) (374.2) 0.0 (1,120.8) (1,118.8) (0.2) Operating Profit 65.7 66.7 (1.5) 180.3 184.8 (2.4) Share of Results of Associates/JVs,
Slide 9: Financial Indicators
Financial Indicators Change Change % 3Q17/18 3Q16/17 ppt/% 9M17/18 9M16/17 ppt/% Operating Margin 14.9 15.1 (0.2) 13.9 14.2 (0.3) PBT Margin 19.3 18.1 1.2 18.6 17.9 0.7 PATMI Margin 15.1 14.8 0.3 15.1 14.7 0.4 Underlying Net Margin 14.1 14.8 (0.7) 14.2 14.0 0.2 Return on Equity 4.2 4.2 0.0 12.3 12.6
Slide 10: Group Segmental Revenue
Group Segmental Revenue $M 3Q17/18 3Q16/17 Change (% ) 9M17/18 9M16/17 Change (% ) By Business*: Food Solutions 240.4 246.5 (2.5) 718.3 739.3 (2.8) Gateway Services 199.0 194.0 2.6 581.8 563.2 3.3 Others 0.4 0.4 0.0 1.0 1.1 (9.1) Total 439.8 440.9 (0.2) 1,301.1 1,303.6 (0.2) By Industry*: Aviation 3
Slide 11: Group Expenditure
Group Expenditure Fav/(Unfav) Fav/(Unfav) $M 3Q17/18 3Q16/17 Change (% ) 9M17/18 9M16/17 Change (% ) Staff Costs 206.9 215.0 3.8 626.9 639.4 2.0 Cost of Raw Materials 64.4 65.5 1.7 188.9 197.0 4.1 Licence Fees 21.5 17.6 (22.2) 63.6 51.4 (23.7) Depreciation & 19.5 18.2 (7.1) 57.5 54.1 (6.3) Amortisat
Slide 12: Associates/JVs Performance by Business
Associates/JVs Performance by Business $M 3Q17/18 3Q16/17 Change (% ) 9M17/18 9M16/17 Change (% ) PAT 13.7 12.7 7.9 47.2 36.4 29.7 Food Solutions 3.1 1.6 93.8 11.6 6.3 84.1 Gateway Services 10.6 11.1 (4.5) 35.6 30.1 18.3 Dividends Received 10.4 18.7 (44.4) 23.3 39.4 (40.9) Strong growth in contribut
Slide 13: Group Balance Sheet
Group Balance Sheet $M As at 31 DEC 17 As at 31 MAR 17 Total Equity 1,678.7 1,691.2 Long-Term Liabilities 168.0 178.3 Current Liabilities 408.1 409.9 Total Equity & Liabilities 2,254.8 2,279.4 Fixed Assets & Investment Properties 559.8 549.1 Associates / JVs 695.1 670.8 Intangible Assets 156.9 157.9
Slide 14: Group Cash Flow Statement
Group Cash Flow Statement $M 9M17/18 9M16/17 Change Net Cash From Operating Activities 146.4 173.2 (26.8) Net Cash Used In Investing Activities (37.9) (58.3) 20.4 Net Cash Used In Financing Activities (186.8) (181.0) (5.8) Net decrease In Cash & Cash Equivalents (78.3) (66.1) (12.2) Cash & Cash Equi
Slide 15: Outlook
Outlook 15
Slide 16: Outlook
Outlook SATS’ performance remains resilient despite a challenging operating environment. Changi Airport’s growth in passenger and cargo traffic will present opportunities for the company to strengthen our operations in Singapore with greater efficiency and innovative products and services. We will c
Slide 17: END
END