An Overview of SATS

Cho Wee Peng, CFO

SIAS Corporate Profile & Investment Seminar 30 November 2013

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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

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Today’s Agenda

• SATS At A Glance

• Investment Thesis

• Summary

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SATS At A Glance

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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

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Key Figures

Revenue1

S$1.82bn

PATMI1

S$184.8mn

Total Assets2

S$1.96bn

Cash and Cash

Equivalents2

S$394.5mn

Debt-to-Equity2

0.09x

ROE1

12.7%

Market

Capitalisation3

S$3.5bn

Headcount2

~14,700

(1) For the twelve months ending 31 March 2013 (2) As at 30 September 2013

(3) As at 28 November 2013

2Q13/14 Highlights

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Revenue • Revenue in 2Q declined 2% year-on-year due to lower food

revenue (-5.9%), offset partially by higher gateway revenue

(+5.1%). $452.1m -2.0%

Operating Profit • Compared to revenue, operating expenditure declined at a slower

pace of 1%. Hence, operating profit fell 10.6%. $46.6m -10.6%

Share of results of

Associates/JVs, net of tax

• Better performance reported by associates in India and Indonesia

saw share of results of Associates/JVs increased 13.5%.

$11.8m +13.5%

PATMI • PATMI was 3.2% lower than a year ago.

$48.7m -3.2%

1H13/14 Highlights

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Revenue • Revenue in 1H declined 1.4% year-on-year due to lower food

revenue (-5.7%), offset partially by higher gateway revenue

(+6.5%). $886.6m -1.4%

Operating Profit • Operating profit fell 4.5% on rising employment costs.

$87.3m -4.5%

Share of results of

Associates/JVs, net of tax

• Better performance reported by associates in India and Indonesia

saw share of results of Associates/JVs increased 10%.

$24.3m +10.0%

PATMI • PATMI rose 3.6%. The Group benefitted from write-back of tax

provision of $4m for prior years which was partially offset by

impairment provision of $1.7m for assets held for sale.

• Excluding one-off items, underlying net profit was $96.6m.

$94.9m +3.6%

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

• Cash and cash equivalents as at 30 September 2013 was

$394.5m.

• Free cash flow generated in the first six months was $60.1m.

0.09 times

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Road Map - To Expand Beyond Aviation & Singapore

By Business By Geography By Industry

FY1999

Gateway Services 38.1%

Food Solutions

61.6%

Corp 0.3%

Aviation 80.9%

Non-Aviation 18.8%

Corp 0.3%

Singapore 80.0%

Japan 15.4%

Others 4.6%

1H FY2014

Singapore 100.0%

Aviation 100.0% Gateway

Services 50.9%

Food Solutions

47.6%

Corp 1.5%

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Investment Thesis

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Investment Thesis

Unique Business Model

Strong Market Position

Positive Growth Prospects

Sound Operating Fundamentals

Resilient Cash Flows & Strong Balance Sheet

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Unique Business Model

Indonesia

Medan Batam Manado

Timika Balikpapan

Makasar

Denpasar

Surabaya

Yogyakarta

Jakarta

Singapore

Manila Ho Chi Minh City

Macau

Hong Kong Taipei

Beijing

Tianjin

Shenyang

Jilin

Tokyo

Hervey Bay Brisbane

Male

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

(Narita & Haneda)

Riyadh

Jeddah

Kaohsiung

Lombok

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

10 Countries

38 Airports

Flights(1)

441,958

Passengers(1)

65.1m

Meals(1)

80.0m

Airfreight(1)

4m tons

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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%

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Positive Growth Prospects • Growing demand for air travel in Asia

2013 GDP forecasts: China – 7.6% and India – 3.8%(1)

YTD Passenger traffic on Asia Pacific airlines grew 7.2% against global average of 5.0%(2)

Asia-Pacific airlines remain one of the biggest contributors to global aviation industry

profit(3)

• Singapore - An established international hub Changi Airport is Asia’s leading air hub; 2012 passenger traffic +10.0% to 51.2m

T4’s completion in 2017 will bring Changi Airport’s capacity to 82m; T5 (to be operational

in mid 2020s) will double existing capacity to 135m

Singapore’s cruise passenger throughput is expected to grow from 913,000 in 2012 to

1.5m by 2017(4)

• Beneficiary of tourism growth in Singapore

Visitor arrivals +9.1% to 14.4m in 2012;

target to reach between 14.8.m to 15.5m in 2013(4)

(1) Source: World Economic Outlook Update (Oct 2013) (2) Source: IATA Air Passenger Market Analysis (Sep 2013)

(3) Source: IATA Financial Forecast (Sep 2013) (4) Source: Singapore Tourism Board

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Positive Growth Prospects

• Proposed acquisition of Singapore Cruise Centre

Grow SATS’ gateway business both in Singapore and Asia Pacific

Positive prospects for cruise in Singapore

Immediately accretive to earnings

Currently awaiting regulatory approval. Once these are obtained, we shall proceed to

convene an EGM to seek shareholder approval.

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Sound Operating Fundamentals

• Strong customer focus and consistently high service standards

• Economies of scale

• Steady focus on improving productivity

(1) Calendarised to March-year end; Source: FactSet, Company information as of latest financial year

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 JohnMenzies

gategroup

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Resilient Cash Flows & Strong Balance Sheet • Strong cash generative businesses with short cash cycle

• Healthy cash reserves of S$394.5m and low debt-to-equity ratio of

0.09x(1)

Strong financial flexibility to seek strategic opportunities

(1) As at 30 September 2013

(2) 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

S$ m

Dividend Payout Ratio(2) FCF & Dividends Paid(2)

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%

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Summary

• Food Solutions and Gateway Services are our core businesses

• Our strategy is to grow our businesses, organically and through

value creating acquisitions

• Our strong financial position provides funding capacity for

acquisitions

END

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