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Investor Presentation DB Access Asia Conference, Singapore 20 21 May 2013
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Page 1: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

Investor Presentation DB Access Asia Conference, Singapore

20 – 21 May 2013

Page 2: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

2

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 and projections of

the directors and management of SATS about our business, and the industry

and markets in which we operate. These statements are not guarantees of

SATS‟ future performance and are subject to a number of risks and

uncertainties, some of which are beyond the Company's control and are

difficult to predict. Future developments and actual results could differ

materially from those expressed in the forward-looking statements. In light of

these risks and uncertainties, there can be no assurance that the forward-

looking information will prove to be accurate. SATS does not undertake to

update these forward-looking statements to reflect events or circumstances

which arise after publication.

Forward Looking Statements

Page 3: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

3

Agenda

• SATS Overview

• Investment Highlights

• Strategic Directions & Outlook

• Appendix

Page 4: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

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SATS Overview

Page 5: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

5

Our Business

Airline Catering

Institutional

Catering

Passenger Services

and Lounge

Management

Ramp and

Baggage Handling

Airfreight Handling

and Logistics

Aviation Security

Cruise Handling

and Terminal

Management

Food Solutions Gateway Services

Airline Linen

Laundry

Food Distribution

and Logistics

Page 6: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

6

SATS at a Glance

Revenue1

S$1.82bn

PATMI1

S$184.8mn

Total Assets2

S$2.01bn

Cash and Cash

Equivalents2

S$404.2mn

Debt-to-Equity2

0.09x

ROE1

12.7%

Market

Capitalisation3

S$3.5bn

Headcount2

~14,400

(1) For the twelve months ending 31 March 2013 (2) As at 31 March 2013

(3) As at 14 May 2013

Page 7: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

4Q12/13 Highlights

7

Revenue • Higher revenue due to steady growth momentum in gateway

(+7.7%) and food (+1.4%) businesses.

$449.0m +3.6%

Operating Profit • Despite a 2.6% increase in operating expenditure, operating profit

rose 12% to $54.1m.

$54.1m +12.0%

Share of results of

Associates/JVs, net of tax

• Higher share of results of associates/JVs attributed to higher

profit contributions from associates in all regions.

$18.5m +76.2%

PATMI • PATMI declined 7.8% to $46.2m due to a $16.8m provision for

impairment of Daniels‟ deferred consideration.

• Excluding this impairment and gain arising from early retirement

of sale and leaseback arrangement in 4Q12, underlying net profit

grew 32.4% to $63m.

$46.2m -7.8%

Page 8: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

8

Our Road Map – Expanding Beyond Aviation and Singapore

By Business By Geography By Industry

FY1999

Gateway Services 35.7%

Food Solutions

64.0%

Corp 0.3%

Aviation 81.2%

Non-Aviation 18.5%

Corp 0.3%

Singapore 76.4%

Japan 18.4%

Others 5.2%

FY2013

Singapore 100.0%

Aviation 100.0% Gateway

Services 50.9%

Food Solutions

47.6%

Corp 1.5%

Page 9: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

9

Investment Highlights

Page 10: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

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Investment Highlights

1.

Unique

Business Model

2.

Strong

Market Position

3.

Positive

Prospects

4.

Sound Operating

Fundamentals

5.

Resilient

Cash Flows

Page 11: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

11

1. Unique Business Model

(1) Based on FY12/13 aviation statistics for Singapore and overseas operations

Indonesia

Medan

Batam Manado

Timika Balikpapan

Ujung

Pandang

Denpasar

Surabaya

Yogyakarta

Jakarta

Singapore

Manila Ho Chi Minh

City

Macau

Hong Kong Taipei

Beijing

Tianjin

Shenyang

Jilin

Tokyo

Hervey Bay Brisbane

Male

Riyadh

Jeddah India

Gateway Services

Food Solutions

Gateway Services and Food

Solutions

Trivandrum

Mangalore Bangalore

Chennai Goa

Mumbai Hyderabad

Delhi

Amritsar

Kolkata Rockhampton

• Twin engines of growth in gateway services and food solutions

• Largest aviation services network in Asia

10 Countries

36 Airports

Flights(1)

410,246

Passengers(1)

65.1m

Meals(1)

70.3m

Airfreight(1)

4m tons

(Narita & Haneda)

Page 12: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

12

2. Strong Market Position

Gateway Services(1)

Ground & Cargo Handling

Aviation Food Solutions(1)

Airline Catering

• Singapore aviation: first-choice service provider for close to 60 scheduled airlines at Changi Airport

SATS 74%

DNATA 26%

SATS 85%

DNATA 15%

(1) Source: Changi Airport Group; market share based on number of scheduled flights.

• Singapore non-aviation: leading institutional caterer with the largest capacity

• Regional aviation: majority of subsidiaries and JVs are either No. 1 or 2 service provider in the airports where they operate

ASIG 0%

Page 13: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

13

3. Positive Prospects - Singapore & the Region

• Located in Asia – a bright spot in the world economy

2013 GDP forecasts(1) China – 8.0% and India – 5.7%

Asia-Pacific airlines remain the biggest contributors to global aviation industry profit(2)

YTD Passenger traffic (RPK) on Asia Pacific airlines grew 3.6% against global

average of 3.1%(3)

• Well established international hub Changi Airport is Asia‟s leading air hub; passenger

traffic up 10.0% to 51.2m in 2012(4)

Addition of the new Marina Bay Cruise Centre

Singapore

• Transforming tourism and hospitality landscape

Integrated Resorts, F1, Gardens by the Bay, River Safari, Sports Hub

Visitor arrivals up 9.1% to 14.4m in 2012; target to reach 14.8.m to 15.5m in 2013(5)

(1) Source: World Economic Outlook Update April 2013 (2) Source: IATA Financial Forecast March 2013

(3) Source: IATA February 2013 Air Transport Market Analysis (4) Source: Changi Airport Group

(5) Source: Singapore Tourism Board

Page 14: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

14

4. Sound Operating Fundamentals

• Strong customer focus and consistently high service standards

• Economies of scale

• Focused on sustainable cost levels

Source: FactSet, Company information as of latest financial year

(1) Calendarised to March-year end

Operating Margins – SATS vs global peers (1)

Aviation Food Solutions Airport Service Providers Food Solutions

10.6% 9.1%

7.0%

5.3% 4.3%

3.2% 3.0%

SATS BBA Compass Sodexo Autogrill John Menzies gategroup

Page 15: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

15

5. Resilient Cash Flows & Strong Balance Sheet

• Highly cash generative businesses

with short cash cycle

• Contract based revenues with limited

downside risks

• Low capex spend ~ S$60-70m p.a.

• Healthy cash reserves of S$404.2m

(36 cents per share)(1)

• Low debt-to-equity ratio of 0.09x(1)

• Undrawn S$500m MTN programme

Excellent financial flexibility to seek

strategic opportunities

(1) As at 31 March 2013

(2) Includes special dividends

* Includes special dividends of S$0.06 per share,

S$0.15 per share and S$0.04 per share for FY11,

FY12 and FY13 respectively

Dividend Payout Ratio(2)

FCF & Dividends Paid(2)

S$ m

156

190

132

104

208

108

142

188

289

167

FY08/09 FY09/10 FY10/11 FY11/12 FY12/13

Free Cash Flow Dividends paid

73.5% 78.6%

63.7% 71.4%

FY08/09 FY09/10 FY10/11 FY11/12 FY12/13

Ordinary dividend Special divdend

98.4%

168.8%

66.2%

90.3%

Page 16: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

16

Strategic Directions & Outlook

Page 17: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

17

Our Strategy

Customer Intimacy • Anticipate customers‟

business challenges

and find solutions

collaboratively

• Increase share of

their spending

Innovation • Explore creative ways

to delight our customers

with game-changing

innovations

• Sustain and improve

product and service

offerings

Operational Excellence • Continually improve

productivity and

performance

Growth • Serve key customers

at strategic locations

• Seek strategic

partnerships and

acquisitions

Page 18: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

18

Execution

Focused execution of strategy

Appointed as exclusive

caterer for Singapore

Sports Hub

Formed 50:50 ground

handling JV with

Air India – AISATS

Awarded technical ramp

handling licence at

Changi Airport

Formed JV to set up an

integrated pig farm in

Jilin Food Zone, China

Purchased 50.7% stake

in Japanese inflight

caterer, TFK Corporation

Bought 40% stake in

Adel Abuljadayel Flight

Catering in Saudi Arabia

Formed a 51:49 JV with

OCS Ventures to provide

remote catering services

Disposed UK non-

aviation food business –

Daniels Group

Won tender to operate

and manage the new

Marina Bay Cruise

Centre S‟pore (MBCCS)

Commenced cruise

handling and terminal

management MBCCS

Renewed ground

handling and inflight

catering contracts with

SIA

Formed a 30%-owned

assoc company in Saudi

Arabia to offer pilgrimage

catering services

Divested 51% equity

stake in Country Foods

Macau

Page 19: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

Key Contracts Secured in FY12/13

19

Singapore

• Ground handling and inflight catering for Singapore Airlines.

• Ground and cargo handling for Air India Express, FedEx,

Lufthansa Cargo/AeroLogic, Sichuan Airlines, United Airways.

• Inflight catering services for Air Mauritius.

• Catering services for Singapore Sports Hub and the Home Team

Academy.

• .

Page 20: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

Key Contracts Secured in FY12/13

20

Overseas

• TFK: inflight catering services for Air Asia Japan, Air France, Finnair,

Garuda, Scoot and Swiss International Air Lines.

• SATS HK: ground handling services for Air India, Ethiopian Airlines,

Malaysia Airlines, Singapore Airlines, Spring Airlines and Turkish

Airlines.

Page 21: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

Corporate Updates

21

Key Management Appointments

• Appointed Mr Alexander Charles Hungate as Executive Director

effective 16 July 2013 and subsequently as President & CEO effective

1 January 2014.

• Appointed Mr Cho Wee Peng as CFO effective 1 July 2013.

• Appointed Mr Wong Hong as the Executive Vice President for

Gateway Services.

Page 22: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

Accolades

22

• SATS clinched „Best Air Cargo Terminal in Asia‟ title at the 27th Asian

Freight & Supply Chain Awards (AFSCA) for the 15th time.

• SATS won joint Silver Award for Best Managed Boards at Singapore

Corporate Awards 2012.

• SATS was ranked 27th out of 100 top brands in Singapore by Brand

Finance, up 8 notches from last year.

• SATS won a distinction award at the inaugural Human Capital

Breakthrough Award for being one of Singapore‟s boldest and most

innovative companies in the field of people management.

• AISATS Bangalore Cargo won the “Air Cargo Terminal Operator of the

Year in India” for second consecutive year at the Indian Supply Chain

and Logistics Summit and Excellence Awards 2013.

Page 23: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

Outlook

23

The continued growth of passenger traffic at Singapore Changi Airport

and the robust intra-Asia traffic will provide opportunities for the

Group‟s gateway and food businesses. Air freight demand, however, is

anticipated to remain weak.

The continuing manpower policies in Singapore and their impact on

operating costs remain major challenges for SATS.

The Group continues to seek new growth areas by expanding its

offerings and regional footprint.

Page 24: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

24

In Summary

• Gateway Services and Food Solutions are our core businesses.

• We will leverage our core strengths to access opportunities in Asia

Pacific and the Middle East.

• We continue to adopt a focused and disciplined approach to drive

both organic and inorganic growth.

• Our strong financial position provides funding capacity for

acquisitions.

• We continue to return surplus cash to shareholders by way of

dividends.

• Our objectives are well aligned to create value for shareholders.

Page 25: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

25

Appendix

- Highlights of 4Q & FY12/13 Results

Released on 15 May 2013

Page 26: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

Impairment of Daniels‟ Deferred Consideration

• Took a $16.8m one-off provision for impairment of Daniels‟ deferred

consideration receivable.

• This receivable is contingent on Daniels‟ FY12 and FY13 EBITDA which

have not met the agreed annual target of £19.245m.

Recap of Daniels Divestment:

• Aggregate sales consideration comprised of:

- £150m consideration received

- Deferred consideration of up to £13m in the event that Daniels met its EBITDA

target over two-year period

• Sale consideration estimated at £159m after accounting for fair value of

deferred consideration.

• Deferred consideration earn-out formula: 3 x (FY EBITDA - £19.245m).

- No earn-out, no clawback if EBITDA target was not achieved

• Recorded loss on disposal of S$5.5m in 3Q12.

26

Page 27: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

27

Underlying Net Profit from Continuing Ops

$M 4Q12/13 4Q11/12 FY12/13 FY11/12

Profit Attributable to Owners of the Company 46.2 50.1 184.8 170.9

Adjustment for Discontinued Operations

Loss/(Profit) from Daniels - - - 10.1

One-offs:

Write-back of TFK's Retirement Benefit Plan

Obligations - - - (5.5)

Loss/(Gain) on Early Retirement of Sale &

Lease Back Arrangement - (2.5) - 2.0

Loss on Disposal of Country Foods Macau - - 0.4 -

Impairment of Daniels Deferred Consideration 16.8 - 16.8 -

Underlying Net Profit from Continuing

Operations 63.0 47.6 202.0 177.5

Page 28: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

FY12/13 Highlights

28

Revenue • Higher revenue driven by organic growth in gateway (+7.6%) and

food (+8.1%) businesses. $1,819.0m +7.9%

Operating Profit • Operating profit increased due mainly to better performance of

food business, including TFK.

$192.3m +13.8%

Share of results of

Associates/JVs, net of tax

• Higher profit contributions from associates/JVs in North and

Southeast Asia saw higher share of results of associates/JVs.

$52.7m +27.9%

PATMI • Due to provision for impairment of Daniels‟ deferred

consideration, PATMI grew at a lower rate of 8.1% to $184.8m.

• Excluding Daniels‟ loss in FY11/12 and one-off items, underlying

net profit improved 13.8% to $202m.

$184.8m +8.1%

Debt-to-equity • Debt-to-equity ratio remained healthy.

• Cash balance was $404.2m as at 31 March 2013.

• Free cash flow generated during the year was $208.1m. 0.09 times -0.01 ppt

Page 29: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

4Q and FY12/13 Financials

29

$M 4Q12/13 4Q11/12 % Change FY12/13 FY11/12 % Change

Operating Revenue 449.0 433.3 3.6 1,819.0 1,685.4 7.9

Operating Expenditure (394.9) (385.0) 2.6 (1,626.7) (1,516.4) 7.3

Operating Profit 54.1 48.3 12.0 192.3 169.0 13.8

EBITDA 77.2 73.3 5.3 285.2 264.8 7.7

Share of Results of

Associates/JVs, Net of Tax18.5 10.5 76.2 52.7 41.2 27.9

Other Non-Operating

Income/Expenses(17.0) 3.3 n.m. (20.5) 11.6 n.m.

PBT from Continuing Operations 55.6 62.1 (10.5) 224.5 221.8 1.2

Profit from Continuing Operations,

Net of Tax & Non-Controlling

Interests

46.2 50.1 (7.8) 184.8 181.0 2.1

Loss from Discontinued

Operations, Net of Tax- - - - (10.1) n.m.

PATMI 46.2 50.1 (7.8) 184.8 170.9 8.1

Underlying Net Profit from

Continuing Operations63.0 47.6 32.4 202.0 177.5 13.8

n.m. – not meaningful

Page 30: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

Q-o-Q Highlights

30

$M 4Q12/13 3Q12/13 2Q12/13 1Q12/13 4Q11/12

Revenue 449.0 470.6 461.5 437.9 433.3

% Change in Revenue -4.6% 2.0% 5.4% 1.1% -2.0%

Expenditure (394.9) (423.8) (409.4) (398.6) (385.0)

Operating Profit 54.1 46.8 52.1 39.3 48.3

% Change in Operating Profit 15.6% -10.2% 32.6% -18.6% 10.3%

EBITDA 77.2 70.6 75.5 61.9 73.3

Share of Results of Associates/JVs, Net of Tax 18.5 12.1 10.4 11.7 10.5

PBT from Continuing Operations 55.6 57.2 61.0 50.7 62.1

Profit from Continuing Operations, Net of Tax & Non-

Controlling Interests46.2 47.0 50.3 41.3 50.1

Loss from Discontinued Operations, Net of Tax - - - - -

PATMI 46.2 47.0 50.3 41.3 50.1

% Change in PATMI -1.7% -6.6% 21.8% -17.6% 31.2%

Underlying Net Profit from Continuing

Operations63.0 47.0 50.7 41.3 47.6

% Change in Underlying Net Profit 34.0% -7.3% 22.8% -13.2% 8.9%

Page 31: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

Financial Indicators

31

% 4Q12/13 4Q11/12

Change

(ppt) FY12/13 FY11/12

Change

(ppt)

Operating Margin 12.0 11.1 0.9 10.6 10.0 0.6

EBITDA Margin 17.2 16.9 0.3 15.7 15.7 -

PBT Margin 12.4 14.3 (1.9) 12.3 13.2 (0.9)

PATMI Margin 10.3 11.6 (1.3) 10.2 10.1 0.1

Underlying Net Margin 14.0 11.0 3.0 11.1 10.5 0.6

Cents 4Q12/13 4Q11/12

%

Change FY12/13 FY11/12

%

Change

EPS Based on Net Profit

Attributable to Shareholders4.2 4.5 (6.7) 16.6 15.4 7.8

EPS Based on Net Profit from

Continuing Operations

Attributable to Shareholders

4.2 4.5 (6.7) 16.6 16.3 1.8

31-Mar-13 31-Mar-12

NAV Per Share ($) 1.26 1.36

Debt Equity Ratio 0.09 0.10

Margins are calculated based on profits from continuing operations.

Page 32: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

Group Segmental Revenue

32

$M 4Q12/13 4Q11/12 % Change FY12/13 FY11/12 % Change

By Business:

Gateway Services 165.3 153.5 7.7 648.7 602.7 7.6

Food Solutions 282.3 278.3 1.4 1,164.7 1,077.0 8.1

Corporate 1.4 1.5 (6.7) 5.6 5.7 (1.8)

Total 449.0 433.3 3.6 1,819.0 1,685.4 7.9

By Industry:

Aviation 363.2 351.9 3.2 1,476.1 1,357.6 8.7

Non-Aviation 84.4 79.9 5.6 337.3 322.1 4.7

Corporate 1.4 1.5 (6.7) 5.6 5.7 (1.8)

Total 449.0 433.3 3.6 1,819.0 1,685.4 7.9

By Geographical Location:

Singapore 350.3 326.1 7.4 1,389.9 1,298.5 7.0

Japan 78.1 81.5 (4.2) 334.4 302.6 10.5

Others 20.6 25.7 (19.8) 94.7 84.3 12.3

Total 449.0 433.3 3.6 1,819.0 1,685.4 7.9

Page 33: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

33

Group Expenditure – 4Q12/13

$M 4Q12/13 4Q11/12 % Change 4Q12/13 4Q11/12 % Change

Staff Costs 179.3 169.1 6.0 144.6 134.3 7.7

Cost of Raw Materials 97.5 96.3 1.2 71.6 70.0 2.3

Licensing Fees 19.2 18.1 6.1 18.7 17.7 5.6

Depreciation & Amortisation 23.5 26.2 (10.3) 20.2 21.7 (6.9)

Company Premise & Utilities 31.3 31.6 (0.9) 25.6 25.4 0.8

Other Costs 44.1 43.7 0.9 38.2 37.8 1.1

Total Expenditure 394.9 385.0 2.6 318.9 306.9 3.9

Revenue 449.0 433.3 3.6 370.9 351.8 5.4

Including TFK Excluding TFK

Excluding TFK‟s expenses, group expenditure increased 3.9% y-o-y

against revenue growth of 5.4%

Page 34: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

34

Group Expenditure – FY12/13

$M FY12/13 FY11/12 % Change FY12/13 FY11/12 % Change

Staff Costs 765.5 697.0 9.8 617.3 559.8 10.3

Cost of Raw Materials 393.0 370.7 6.0 284.1 271.7 4.6

Licensing Fees 77.0 70.3 9.5 75.2 68.8 9.3

Depreciation & Amortisation 92.9 97.4 (4.6) 79.3 79.7 (0.5)

Company Premise & Utilities 130.5 123.7 5.5 105.7 99.6 6.1

Other Costs 167.8 157.3 6.7 142.8 134.5 6.2

Total Expenditure 1,626.7 1,516.4 7.3 1,304.4 1,214.1 7.4

Revenue 1,819.0 1,685.4 7.9 1,484.6 1,382.8 7.4

Including TFK Excluding TFK

Page 35: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

Associates/JVs Performance by Business – Based on SATS‟ Shareholding*

35

* Excludes TFK’s Associates

$M 4Q12/13 4Q11/12 % Change FY12/13 FY11/12 % Change

Turnover 94.6 86.9 8.9 315.8 337.3 (6.4)

Gateway Services 74.7 68.6 8.9 240.6 263.1 (8.6)

Food Solutions 19.9 18.3 8.7 75.2 74.2 1.3

EBITDA 24.1 16.1 49.7 83.6 77.4 8.0

Gateway Services 21.7 14.6 48.6 74.0 71.2 3.9

Food Solutions 2.4 1.5 60.0 9.6 6.2 54.8

EBITDA Margin (%) 25.5 18.5 7.0 ppt 26.5 22.9 3.6 ppt

Gateway Services 29.0 21.3 7.7 ppt 30.8 27.1 3.7 ppt

Food Solutions 12.1 8.2 3.9 ppt 12.8 8.4 4.4 ppt

PAT 18.6 10.5 77.1 52.9 41.7 26.9

Gateway Services 17.1 11.2 52.7 48.8 41.1 18.7

Food Solutions 1.5 (0.7) n.m. 4.1 0.6 n.m.

Dividends Received - - - 24.6 23.2 6.0

n.m. – not meaningful

Page 36: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

Associates/JVs Performance by Region – Based on SATS‟ Shareholding*

36

* Excludes TK’s Associates

$M 4Q12/13 4Q11/12 % Change FY12/13 FY11/12 % Change

Turnover 94.6 86.9 8.9 315.8 337.3 (6.4)

West Asia 32.0 26.3 21.7 81.5 103.3 (21.1)

North Asia 45.5 45.1 0.9 170.7 174.3 (2.1)

SEA & Australasia 17.1 15.5 10.3 63.6 59.7 6.5

EBITDA 24.1 16.1 49.7 83.6 77.4 8.0

West Asia 4.5 2.3 95.7 15.4 20.4 (24.5)

North Asia 9.0 9.0 - 40.5 35.8 13.1

SEA & Australasia 10.6 4.8 120.8 27.7 21.2 30.7

EBITDA Margin (%) 25.5 18.5 7.0 ppt 26.5 22.9 3.6 ppt

West Asia 14.1 8.7 5.4 ppt 18.9 19.7 (0.8) ppt

North Asia 19.8 20.0 (0.2) ppt 23.7 20.5 3.2 ppt

SEA & Australasia 62.0 31.0 31.0 ppt 43.6 35.5 8.1 ppt

PAT 18.6 10.5 77.1 52.9 41.7 26.9

West Asia 3.7 1.0 n.m. 9.9 10.7 (7.5)

North Asia 6.5 4.8 35.4 23.5 15.6 50.6

SEA & Australasia 8.4 4.7 78.7 19.5 15.4 26.6

Dividends Received - - - 24.6 23.2 6.0

n.m. – not meaningful

Page 37: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

37

Proforma Segmental Revenue (Include Proportionate Revenue from Assocs/JVs*)

Gateway Services 41.7% Food

Solutions 58.0%

Corp 0.3%

Aviation 83.9%

Non-Aviation 15.8%

Corp 0.3%

Singapore 65.1%

Japan 15.7%

Assoc/JVs 14.8%

Others 4.4%

Gateway Services 42.8% Food

Solutions 56.9%

Corp 0.3%

Aviation 83.8%

Non-Aviation 15.9%

Corp 0.3%

Singapore 64.2%

Japan 14.9%

Assoc/JVs 16.7%

Others 4.2%

By Business By Industry By Geography

FY12/13

FY11/12

* Excludes TFK’s Associates

Page 38: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

Group Balance Sheet

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$M As at 31 Mar 13 As at 31 Mar 12

Total Equity 1,496.7 1,616.2

Long-term Loans 108.7 131.3

Other Long-Term Liabilities 89.7 102.7

Current Liabilities 310.1 272.3

Total Equity & Liabilities 2,005.2 2,122.5

Fixed Assets & Investment Property 603.5 667.4

Associated Companies & JVs 390.2 368.3

Intangible Assets 192.9 213.0

Other Non-Current Assets & Long-Term Investment 38.3 42.6

Current Assets

Cash & Short-Term Deposits 405.5 471.6

Debtors & Other Current Assets 374.8 359.6

Total Assets 2,005.2 2,122.5

Decline in equity and cash & short-term deposits mainly attributed to

dividend payments of $288.6m

Page 39: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

Group Cash Flow Statement

39

* Free Cash Flow refers to net cash from operating activities less cash purchases of capital expenditure.

$M FY12/13 FY11/12 Difference

Net Cash from Operating Activities 245.9 168.0 77.9

Net Cash generated from/(used in) Investing Activities (16.6) 224.5 (241.1)

Net Cash used in Financing Activities (286.4) (215.9) (70.5)

Net (decrease)/increase in Cash & Cash Equivalents (57.1) 176.6 (233.7)

Cash & Cash Equivalents at the end of the period 404.2 470.1 (65.9)

Free Cash Flow* 208.1 103.7 104.4

Higher free cash flow attributed to higher cash flow from operating activities and lower capex incurred

Page 40: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

Operating Statistics for Singapore Aviation Business

40

• The above aviation operating data cover Singapore operations only.

• With the exception of unit and gross meals produced, all data include LCC operations.

• Unit services in 9M11/12 has been restated due to the change in the weightage factor for certain aircraft

type. As a result, the restated figure is higher than what was previously announced for 9M11/12.

4Q12/13 4Q11/12 % Change FY12/13 FY11/12 % Change

Passengers Handled ('M) 10.51 9.67 8.7 41.23 37.92 8.7

Flights Handled ('000) 31.42 29.26 7.4 123.01 115.19 6.8

Unit Services ('000) 26.67 24.31 9.7 103.80 95.88 8.3

Cargo ('000 tonnes) 357.80 351.43 1.8 1,463.09 1,504.64 (2.8)

Gross Meals Produced ('M) 6.94 6.70 3.6 28.26 26.50 6.6

Unit Meals Produced ('M) 5.37 5.26 2.1 21.85 20.72 5.5

All operating metrics grew y-o-y in 4Q FY12/13

Page 41: Investor Presentation - FinanzNachrichten.de · the directors and management of SATS about our business, and the industry ... at strategic locations ... Scoot and Swiss International

END

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