Sats Ltd · SGX:S58
Sats — FY2023 Earnings Presentation
31 slides from Sats's earnings presentation, May 29, 2023
Slide 1: FY23 Performance Review
FY23 Performance Review 29 May 2023
Slide 2: Forward Looking Statement – Important Note
Forward Looking Statement – Important Note The following presentation contains forward-looking statements by the management of SATS Ltd. (“SATS”), relating to financial and market trends for future periods. Some of the statements contained in this presentation that are not historical facts are state
Slide 3: Agenda
Agenda 1 Business Update 2 Group Financial Review 3 Outlook 4 Q&A 3
Slide 4: 4Q FY23 Results Show Underlying Business Growth Despite Headwinds
4Q FY23 Results Show Underlying Business Growth Despite Headwinds Positive PATMI of $5.5M in 4Q as revenue grew 59.6% YoY 4Q performance reflects OPEX up due to increased One-off acquisition improving business conditions business activities and expenses of $14.7M despite uncertain macroeconomic infl
Slide 5: Sustained growth through FY23
Current period Sustained growth through FY23 Prior period QoQ: QoQ: QoQ: QoQ: QoQ: +7.0% +11.2% +5.6% -9.9% +3.0% *All statistics refer to Group (SATS and subsidiaries) unless indicated otherwise 5
Slide 6: Executing our Twin-engine Growth Strategy in FY23
Executing our Twin-engine Growth Strategy in FY23 Achieving IATA Lithium Battery WFS Acquisition Completion Certification AAT Coolport Launch SATS Tianjin Central Kitchen Launch AISATS Noida Cargo Hub Selection 6
Slide 7: Group Financial Review
Group Financial Review
Slide 8: Executive Summary: 4Q FY23 Performance
EXECUTIVE Summary: 4Q FY23 Performance • 4Q revenue increased 59.6% to $478.1M against 4Q last year. • 4QFY23 PATMI of $5.5M was $3.4M higher than 4QFY22. • Without government reliefs, core PATMI for 4QFY23 would have been a loss of $10.5M, compared to a loss of $42.5M for the same quarter last year
Slide 9: 4Q FY23 Highlights (vs 4Q FY22)
4Q FY23 Highlights (vs 4Q FY22) S$'M 4Q FY23 4Q FY22 YoY var YoY var % Commentary • Group revenue improved by 59.6% ($178.6M) as Food and Revenue 478.1 299.5 178.6 59.6 Gateway recorded higher revenue by 42.4% and 81.0% on the back of aviation recovery and AAT consolidation. OPEX (482.7) (336.6) (14
Slide 10: 2H FY23 Highlights (vs 2H FY22)
2H FY23 Highlights (vs 2H FY22) S$'M 2H FY23 2H FY22 YoY var YoY var % Commentary • Group revenue improved by 57.1% ($346.5M) as Food and Revenue 953.8 607.3 346.5 57.1 Gateway recorded higher revenue by 41.1% and 76.9% on the back of aviation recovery and AAT consolidation. OPEX (959.5) (653.9) (30
Slide 11: FY23 Highlights
FY23 Highlights S$'M FY23 FY22 YoY var YoY var % Commentary • Group revenue improved by 49.4% ($581.5M) as Food and Revenue 1,758.3 1,176.8 581.5 49.4 Gateway recorded higher revenue by 35.6% and 66.9% on the back of aviation recovery and AAT consolidation. OPEX (1,806.3) (1,219.4) (586.9) (48.1) •
Slide 12: FY23 Quarterly Trending
FY23 Quarterly Trending $178.6M $3.4M Revenue PATMI 429.0 475.7 478.1 375.5 275.6 293.9 307.8 299.5 6.4 6.8 5.1 2.1 0.5 5.5 (9.9) (22.5) 1Q22 2Q22 3Q22 4Q22 1Q23 Revenue 2Q23 3Q23 4Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 $61.9M EBITDA $34.0M EBITDA Core PATMI 55.2 58.7 Core PATMI 45.4 32.9 32.8
Slide 13: Revenue
Revenue Actual Actual Var Actual Actual Var Business Revenue 4QFY23 4QFY22 $ % FY23 FY22 $ % Aviation Food By Business: 495.2 28% Gateway Services Ground Services - Cargo 79.9 44.8 35.1 78% 325.6 180.8 144.8 80% 563.0 Non 32% aviation - Ground Services 164.1 90.0 74.1 82% 563.0 351.7 211.3 60% Food
Slide 14: 4Q FY23 Group Expenditure
4Q FY23 Group Expenditure YoY Growth $146.2M 43.4% +$75.6M +$15.9M +$17.0M +$16.5M +$16.8M +$4.4M 45.2% 53.4% 23.0% 589.3% 77.4% 10.6% Premise Costs OOE 242.7 8% 10% Licence Fees 167.1 4% 4Q FY23 Staff Costs Raw S$482.8M 50% Materials 19% 90.8 73.8 D&A 9% 45.7 45.8 41.4 38.5 29.8 19.3 21.7 2.8 Staff
Slide 15: Summary Financials – Associates and Joint Ventures (AJVs)
Summary Financials – Associates and Joint Ventures (AJVs) OVERVIEW S$’M 4Q FY23 4Q FY22 % change • 4Q SSOR increased 11.3% YoY. SATS Share of Revenue 100.8 90.6 11.3 (SSOR) • Share of earnings increased by $13.5M to $17.6M Share of earnings / (losses) 17.6 4.1 329.3 compared to last year. Segmental
Slide 16: 4Q FY23 Revenue (Consol & SSOR) and PATMI by region
4Q FY23 Revenue (Consol & SSOR) and PATMI by region Consol Revenue YoY SSOR YoY PATMI YoY 4Q FY23 4Q FY22 % 4Q FY23 4Q FY22 % 4Q FY23 4Q FY22 % Singapore 383.3 253.9 51.0 385.6 255.8 50.7 0.9 (14.2) n.m. Japan 26.5 21.1 25.6 27.6 22.0 25.5 2.6 (1.9) n.m. Asean (ex-SG) 16.0 9.7 64.9 39.7 27.5 44.4 2.
Slide 17: FY23 Group Financial Position
FY23 Group Financial Position # Components of the debt: MTN and term loans ($1,147M) and lease liabilities ($332M) * Before taking into account leases (LY net cash: $275M) **FY23 denotes @ 31 Mar 23 and FY22 denotes @ 31 Mar 22 n.m. – not meaningful 17
Slide 18: Group Balance Sheet
Group Balance Sheet $M AS AT 31 MAR 23 AS AT 31 MAR 22 Change % Commentary Mainly due to lower property, plant and equipment from disposal, lower Non-Current Assets 1,950.9 1,996.3 (2.3) intangible assets from amortisation and foreign currency translation difference, and lower investment in associat
Slide 19: Group Cash Flow Statement
Group Cash Flow Statement $M FY23 FY22 Difference Net cash used in operating activities 79.6 62.3 17.3 Net cash used in investing activities (1,831.9) 31.1 (1,863.0) Capital expenditure (119.4) (77.9) (41.5) Dividends from associates/joint ventures 23.5 26.6 (3.1) Proceeds from disposal of property,
Slide 20: Outlook
Outlook
Slide 21: Outlook (1 of 2)
Outlook (1 of 2) Our aviation business is expected to grow as travel continues to recover across the regions. However, the macroeconomic outlook remains uncertain. Monetary tightening is expected to further impact consumer and business spending while the ongoing geopolitical and trade tensions conti
Slide 22: Outlook (2 of 2)
Outlook (2 of 2) Kerry Mok, President and Chief Executive Officer of SATS, said, "In support of Changi Airport's preeminent air hub status, SATS ramped up its operations in Singapore quickly ahead of travel recovery to ensure minimal disruptions to operations. During the year, we managed the sharp i
Slide 23: Appendix
Appendix
Slide 24: Group Segmented P&L – 4Q FY23
Group Segmented P&L – 4Q FY23 Food Gateway 4Q FY23 Food Gateway 4Q FY22 Others Others Solutions Services Total Solutions Services Total Revenue 233.8 243.9 0.4 478.1 164.1 134.9 0.5 299.5 EBIT (Loss)/profit (1.3) 9.1 (12.4) (4.6) (10.6) (12.2) (14.3) (37.1) Net finance expense 0.0 (1.1) (0.2) (1.3)
Slide 25: Group Segmented P&L – FY23
Group Segmented P&L – FY23 Food Gateway FY23 Food Gateway FY22 Others Others Solutions Services Total Solutions Services Total Revenue 869.3 888.5 0.5 1,758.3 640.9 532.5 3.4 1,176.8 EBIT (Loss)/profit (33.8) (2.0) (12.2) (48.0) (44.1) 6.7 (5.2) (42.6) Net finance expense (1.0) (5.5) (2.2) (8.7) (3.
Slide 26: FY23 Group Expenditure
FY23 Group Expenditure YoY Growth $586.9M 48.1% +$341.2M +$56.1M +$25.2M +$40.1M +$50.4M +$73.9M 62.0% 46.9% 8.1% 246.0% 68.2% 50.0% Premise 891.8 Costs OOE 7% 12% Licence Fees 3% FY23 Staff 550.6 Costs S$1,806.3M Raw 49% Materials 336.3 19% 311.1 D&A 221.7 10% 175.8 124.3 147.8 119.7 56.4 73.9 16.3
Slide 27: Summary Financials – Associates and Joint Ventures (AJVs)
Summary Financials – Associates and Joint Ventures (AJVs) OVERVIEW S$’M FY23 FY22 % change • Full year SSOR increased 4.8% YoY. SATS Share of Revenue 368.0 351.0 4.8 (SSOR) • Share of earnings increased $28.3M to $45.4M Share of earnings / (losses) 45.4 17.1 165.5 compared to last year. Segmental SS
Slide 28: FY23 Revenue (Consol & SSOR) and PATMI by region
FY23 Revenue (Consol & SSOR) and PATMI by region Consol Revenue YoY SSOR YoY PATMI YoY FY23 FY22 % FY23 FY22 % FY23 FY22 % Singapore 1,408.7 1,005.6 40.1 1,417.9 1,014.9 39.7 (20.7) 20.1 n.m. Japan 88.0 77.5 13.4 91.9 81.3 13.0 (4.6) (9.8) 53.1 Asean (ex-SG) 52.6 23.5 123.8 154.5 96.3 60.4 16.4 1.9
Slide 29: Summary of key associates / joint ventures
Summary of key associates / joint ventures FY23 SATS share of revenue (SSoR) No. Associates/JVs Business Total Singapore Japan Asean Greater India Others SSOR Unit (ex-SG) China Food 1 Taj SATS Air Catering/TMFK Food 55 - - - - 55 - Solutions 35% 2 Evergreen Sky Catering Food 26 - - - 26 - - 3 Macro
Slide 30: Summary of key associates / joint ventures
Summary of key associates / joint ventures FY22 SATS share of revenue (SSoR) No. Associates/JVs Business Total Singapore Japan Asean Greater India Others SSOR Unit (ex-SG) China Food Solutions 17% 1 Taj SATS Air Catering/TMFK Food 26 - - - - 26 - 2 Evergreen Sky Catering Food 8 - - - 8 - - 3 Beijing
Slide 31: Q&A
Q&A Shaping) the Future ~~