Sats Ltd · SGX:S58
Sats — 1H FY21 Earnings Presentation
31 slides from Sats's earnings presentation, Nov 12, 2020
Slide 1: 1H FY21 Performance Review
1H FY21 Performance Review 12th November 2020 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. SATS Ltd. accepts no liability whatsoever with respect to the use o
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 Q&A 3
Slide 4: Air travel begins gradual and fragile road to recovery
<Confidential> Air travel begins gradual and fragile road to recovery Singapore’s Special Travel Arrangements Fast Lane & Reciprocal Green Lane (RGL) – business or official travellers 1. Brunei 2. China 3. Germany 4. Indonesia 5. Japan 6. Malaysia 7. South Korea Bilateral Air Travel Bubble • Hong Ko
Slide 5: Full-Year FY20 & 2QFY21 Operating Statistics
<Confidential> Full-Year FY20 & 2QFY21 Operating Statistics Flights Handled Meals Served Passengers Handled Cargo Tonnage Number of Employees In Thousand In Million In Million In Million Tonnes Number 1.9 1.8 351.4 82.5 84.6 17K 17K 213.2 59.9 76.1 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 1
Slide 6: SATS is supporting safe reopening of air and cruise travel
SATS is supporting safe reopening of air and cruise travel Through implementation of new passenger health testing protocols Singapore Tourism Board pilots safe cruises at Marina Bay Cruise Centre Genting Cruise Lines’ World Dream resumed sailing from 6 November thrice a week. Royal Caribbean Interna
Slide 7: The future of flying
The future of flying SATS is implementing innovative, low-touch meals and rigorous in-cabin cleaning for safe air travel Low-touch, high-hygiene flight experience SATS is introducing low-touch, individually packaged meals with personal protection packs for a full onboard meal service to airlines, en
Slide 8: Growing new customer segments
Growing new customer segments SATS is expanding its food solutions to serve foodservice and retail chains, and institutions Product extensions and development SATS is harnessing its culinary innovation and expertise to develop a variety of ready-to-eat meals ranging from new Farmpride products to pl
Slide 9: Gearing up to handle COVID-19 vaccines
<Confidential> Gearing up to handle COVID-19 vaccines Building cold-chain handling capabilities across our network • Despite flight disruptions, SATS saw a 15% increase in pharmaceutical cargo throughput by weight in Singapore in January to July 2020, compared to the same period last year. • SATS Co
Slide 10: Group Financial Review
Group Financial Review ee ee
Slide 11: Executive Summary: 2Q FY21 Performance
Executive Summary: 2Q FY21 Performance • Group revenue decreased 53.5% to $231.1M • PATMI decreased 154.7% to ($33.2M) • Core earnings decreased 102.6% to ($1.6M) • Share of earnings from associates/JVs decreased 193.4% to ($12.8M) • EBITDA decreased 80.8% to $20.5M • EPS declined 8.4 cents to (3.0
Slide 12: 2Q FY21 Highlights
2Q FY21 Highlights 2Q FY21 2Q FY20 Change ($’M) Commentary Act Act $/ppt % • Gateway (-$138.1M), Food (-$131.4M) • Aviation revenue declined sharply due to COVID-19 pandemic Revenue 231.1 497.4 (266.3) (53.5) • Overall flights handled declined > 71% • Cargo tonnage dropped 40% in Singapore and > 57%
Slide 13: 1H FY21 Highlights
1H FY21 Highlights 1H FY21 1H FY20 Change ($’M) Commentary Act Act $/ppt % • Gateway (-$289.8M), Food (-$236.9M) • Aviation revenue declined sharply due to COVID-19 pandemic Revenue 440.5 962.5 (522.0) (54.2) • Overall flights handled declined > 84% • Cargo tonnage dropped 45% in Singapore and > 69%
Slide 14: Group Segmented Revenue
Group Segmented Revenue Revenue 2Q FY21 2Q FY20 Change (%) By Business: Food, Gateway 139.6 87.8 Food Solutions 139.6 271.0 (48.5) 60% 38% Gateway Services 87.8 225.9 (61.1) Others 3.7 0.5 n.m. Others Total 231.1 497.4 (53.5) 3.7 2% By Industry: Aviation 126.8 422.5 (70.0) Non- Non-aviation 100.6 74
Slide 15: Group Segmented Revenue
Group Segmented Revenue Revenue 1H FY21 1H FY20 Change (%) By Business: Food Gateway 159.4 275.5 Food Solutions 275.5 512.4 (46.2) 63% 36% Gateway Services 159.4 449.2 (64.5) Others Others 5.6 0.9 n.m. 5.6 1% Total 440.5 962.5 (54.2) By Industry: Aviation 237.4 831.3 (71.4) Non- Aviation Non-aviatio
Slide 16: 2Q FY21 Group Expenditure
2Q FY21 Group Expenditure YoY -$201.3M Growth -46.6% $142.0M $5.2M $20.4M $17.6M $7.4M $19.1M OOE 11% Premise costs 231.5 7% Licence fees 2% Staff costs 39% 2Q FY21 S$231.1M 89.5 81.7 61.3 Raw materials 44.7 27% 33.3 28.1 25.6 16.9 24.3 22.1 4.5 D&A 14% Staff Costs D&A Raw Materials Licence Fees Pre
Slide 17: Summary Financials – Associates and Joint Ventures
7 <Confidential> Summary Financials – Associates and Joint Ventures S$’M 2Q FY21 2Q FY20 % change OVERVIEW SATS Share of Revenue • Greater China constitutes 45% of 67.0 182.5 (63.3) (SSOR) SSOR (Associates and JVs) Share of losses / earnings (12.8) 13.7 (193.4) Segmental SSOR – Associates and JVs •
Slide 18: 2Q FY21 SATS share of revenue and PATMI by region
<Confidential> 2Q FY21 SATS share of revenue and PATMI by region Consol YoY SSOR YoY PATMI YoY Revenue 2Q FY21 % 2Q FY21 2Q FY20 % 2Q FY21 % Singapore 197.3 (49.9) 199.2 414.3 (51.9) 25.2 (48.0) Japan 16.4 (76.3) 17.6 71.7 (75.4) (5.3) n.m. Asean (ex-SG) 6.2 (73.4) 18.4 66.9 (72.5) (42.0) n.m. Great
Slide 19: 1H FY21 Group Financial Position
1H FY21 Group Financial Position • FY21 Debt/Equity: 0.45x. With the SFRS (I) 16, Debt/Equity ratio will be 0.58x ____________________ 19 Note: All figures as at 30 September 20 are unaudited and in S$ m unless otherwise stated. n.m. – not meaningful
Slide 20: Group Balance Sheet
Group Balance Sheet $M As at 30 Sep 20 As at 31 Mar 20 % change Commentary Lower non-current assets mainly due to impairment and share of losses recognised for investments in associates and joint ventures Non-Current Assets 1,865.4 1,978.3 (5.7) and long-term investments for the period, as well as d
Slide 21: Financial Indicators
Financial Indicators Change Change % 2Q FY21 2Q FY20 1H FY21 1H FY20 ppt/% ppt/% EBIT Margin 0.0 13.1 (13.1) (8.2) 12.7 (20.9) PATMI Margin (14.4) 12.2 (26.6) (17.5) 12.0 (29.5) EBITDA Margin 8.9 21.5 (12.6) (3.0) 21.3 (24.3) Return on Equity n.m. 3.6 n.m. n.m. 7.0 n.m. Basic EPS (cents) (3.0) 5.4 (
Slide 22: Group Cash Flow Statement
Group Cash Flow Statement $M 1H FY21 1H FY20 Difference Net Cash from Operating Activities 19.0 86.5 (67.5) Net Cash used in Investing Activities (5.2) (58.6) 53.4 Capital expenditure (25.8) (29.9) Dividends from associates/joint ventures 15.7 24.4 Proceeds from disposal of property, plant and equip
Slide 23: Outlook
Outlook 23
Slide 24: Outlook
Outlook The outlook remains challenging with flight and passenger volumes still heavily constrained by pandemic- related travel restrictions, although demand for air cargo continues to be more resilient. Flight, passenger and cargo volumes have all climbed from their lows in April 2020, but the traj
Slide 25: Appendix
Appendix pu
Slide 26: Summary of key associates / joint ventures
Summary of key associates / joint ventures 1H FY21 SATS share of revenue (SSoR) Business Asean Greater No. Associates/JVs Total Singapore Japan India Others Unit (ex-SG) China SSoR 1 Taj SATS Air Catering/TMFK Food 5 - - - - 5 - Food 2 Evergreen Sky Catering Food 2 - - - 2 - - Solutions 10% 3 Brahim
Slide 27: Summary of key associates / joint ventures
Summary of key associates / joint ventures 1H FY20 SATS share of revenue (SSoR) Business Asean Greater No. Associates/JVs Unit Total Singapore Japan (ex-SG) China India Others SSoR 1. Evergreen Sky Catering Food 19 - - - 19 - - 2. Taj SATS Air Catering/TMFK Food 18 - - - - 18 - Food Solutions 3. Bra
Slide 28: 1H FY21 Group Expenditure
1H FY21 Group Expenditure YoY Growth -$364.2M -43.3% $278.9M $12.3M $19.0M $36.5M $10.2M $31.9M OOE 464.9 11% Premise costs 8% Licence fees 2% Staff costs 39% 1H FY21 186.0 S$476.5M 143.9 124.9 Raw materials 86.1 26% 66.8 54.5 54.2 36.6 46.8 44.5 8.0 D&A 14% Staff Costs D&A Raw Materials Licence Fee
Slide 29: Summary Financials – Associates and Joint Ventures
9 <Confidential> Summary Financials – Associates and Joint Ventures S$’M 1H FY21 1H FY20 % change OVERVIEW SATS Share of Revenue • Greater China constitutes 49% of 136.6 364.3 (62.5) (SSOR) SSOR (Associates and JVs) Share of losses / earnings (44.2) 28.3 (256.2) Segmental SSOR – Associates and JVs •
Slide 30: 1H FY21 SATS share of revenue and PATMI by region
1H FY21 SATS share of revenue and PATMI by region Consol YoY SSOR YoY PATMI YoY Revenue 1H FY21 % 1H FY21 1H FY20 % 1H FY21 % Singapore 383.2 (50.0) 386.5 814.5 (52.5) 29.5 (67.5) Japan 29.1 (78.4) 31.4 139.4 (77.5) (11.0) n.m. Asean (ex-SG) 7.5 (83.7) 31.4 125.0 (74.9) (53.2) n.m. Greater China 12.
Slide 31: Q&A
Q&A