Renewed
Vigour
SATS LTD. Annual Report 2020-21
Contents
Megatrends | 02 |
SATS Story | 04 |
Key Business Metrics | 06 |
Reinforce Capabilities | 08 |
Feed Communities | |
Redefine Productivity | 10 |
Connect Communities | |
Nurture People | 12 |
Upskill Workers | |
Chairman & PCEO Statement | 14 |
Geographical Presence | 20 |
Board of Directors | 22 |
Operational Review: | 28 |
Food Solutions | |
Operational Review: | 32 |
Gateway Services | |
Five-Year Group Financial | 36 |
and Operational Summary | |
Financial Review | 38 |
Financial Calendar | 43 |
Group Management Board | 44 |
Corporate Governance Report | 50 |
Building a Sustainable Future | 98 |
Financial Statements | 103 |
Additional Information | 215 |
SATS Acronyms | 217 |
Information on Shareholdings | 219 |
Notice of Annual General Meeting | 221 |
Additional Information on Directors | 230 |
Seeking Re-election
Proxy Form
Corporate Information
SATS marked a watershed year in FY2020-21 where we accelerated our transformation in the face of challenges precipitated by the COVID-19 crisis.
It was a season of change that saw the expansion of new pathways for
business growth,
Harnessing food technologies and resilient supply chains, SATS continuously germinates fresh ways of creating tasty, quality food and makes it accessible to more people. We serve communities and customers in and beyond aviation with heartfelt service and advanced technology, connecting people and businesses seamlessly through our comprehensive gateway services.
Driven by a passion to delight our customers
Online Version
For more information, please visit sats.com.sg/AGM2021
All values in the tables, graphs and charts are expressed in Singapore currency unless otherwise stated. Any discrepancies in the tables, graphs and charts included in this report between the listed amounts and total thereof are due to mathematical rounding. Where applicable, measurements in square metres ("sq m") are converted to square feet ("sq ft") and vice versa based on the conversion rate of 1 sq m = 10.7639 sq ft.
Venue courtesy of Gardens By The Bay, Singapore
buttressing of our core business and capabilities, and our people branching out to feed and connect communities.
through innovation, we continue our transformation with renewed vigour.
SATS Ltd. Annual Report 2020-2101.
Thesemegatrends have paved the way for SATS to leverage its capabilities to help its customers and stakeholders in these industries to meet demand and grow sustainably.
01. Plant-based proteins
02. eCommerce
The demand for eCommerce has surged during the COVID-19 pandemic, as consumers shifted their disposable spending from services to products, driving the online share of global retail up to 17% in 2020 from 14% in 20192. SATS is tapping on the advantageous airside locations of its digitalised cargo terminal operations (CTO) network across 10 countries in Asia Pacific and the Middle East to bring added value to its customers. From enhancing its CTO facilities to enable more automated track
& trace piece-level handling to obtaining IATA CEIV certifications, SATS is scaling efficiency to keep supply chains running smoothly.
2 How COVID-19 Triggered the Digital
and eCommerce Turning Point,
UNCTAD, 15 March 2021
03.
Travel
In anticipation of air travel's rebound,
SATS is proactively working with
1 The New Protein Diet, Business Times, 30 April 2021
One of the biggest food trends today is plant-based proteins, which are projected to grow in market size from US$10.3 billion in 2020 to US$14.5 billion by 20251. SATS is well-positioned to capture a share of the market by acquiring distribution rights for plant-based brands such as Growthwell, Tyson First Pride, and Impossible Foods through its subsidiary, Country Foods.
its airline customers to explore innovative solutions to create a safe and improved travel experience for passengers. These prolific efforts range from enhancing demand planning and reducing waste, to promoting sustainable food packaging and boosting sanitisation, as well as harnessing data insights from digital menus to help airlines better predict customer demand and refresh buy-onboard offerings more often to feature the latest F&B trends.
02. Renewed Vigour | SATS Ltd. Annual Report 2020-2103. |
SATS Story
Who We Are
Our Purpose
Feedand Connect
Communities.
For more details on | See "Purpose and Brand" |
our refreshed purpose | page 90 |
SATSis Asia's leading provider of food solutions and gateway services with 13,000* employees delighting customers in over 55 locations and 13 countries across the Asia Pacific, UK, and the Middle East.
* This refers to the Group's average headcount for FY2020-21.
Our Stakeholders Include
Our
Vision
To be the market leader by delighting customers with innovative food solutions and seamless connections.
Using innovative food technologies and | |
resilient supply chains, we create tasty, | |
quality food in sustainable ways for | |
airlines, foodservice chains, retailers and | |
institutions. With heartfelt service and | |
advanced technology, we connect people, | |
businesses and communities seamlessly | |
Our | through our comprehensive gateway |
services for customers such as airlines, | |
cruise lines, freight forwarders, postal | |
services and eCommerce companies. |
Mission
Customers Employees Partners Investors Regulators
For more detailed | See "Corporate Governance Report" | See "Building a Sustainable Future" |
discussions around our | ||
pages 50-97 | pages 98-102 | |
context and stakeholders | ||
Our
Core
Values
Passion | Innovation |
to delight | Trust |
Safety | |
Teamwork | |
SATS' core values, Corporate Governance principles, Code of Conduct, and Ethics and Compliance Framework help to guide everyone at SATS to act in line with these values and comply with relevant laws and regulations.
For more details on how our core values are embedded within the company
See "Corporate
Governance Report"
pages 50-97
04. Renewed Vigour | SATS Ltd. Annual Report 2020-2105. |
Key Business
Metrics
Revenue | FY2019-20 | EBITDA# | FY2019-20 | Share of results | FY2019-20 | (Loss)/profit | FY2019-20 |
S$ 1,941.2M | S$ 355.6M | of associates/joint | S$ 11.8M | attributable to | S$ 168.4M | ||
ventures, net of tax | owners of the | ||||||
company | |||||||
S$ 970M | S$ 72.3M | S$ (48)M | S$ (78.9)M |
For more detailed information, please refer to page 36
Staff costs & revenue per employee
S$ 125,882 | S$ 131,182 | S$ 127,780 | S$ 113,157 | S$ 74,749 |
Revenue | ||||
per Employee | ||||
Staff Costs | ||||
per Employee |
Return on equity
(5)%
FY2020-21
FY2016-17 | FY2017-18 | FY2018-19 | FY2019-20 |
16.7% | 16.2% | 15.1% | 10.3% |
We measure our success by tracking key performance indicators that reflect our operational and financial performance.
S$ 54,102 | S$ 53,803 | ||||||
S$ 52,304 | |||||||
S$ 44,279 | S$ 27,307 | ||||||
FY2016-17 | FY2017-18 | FY2018-19 | FY2019-20 | FY2020-21 |
Average number of employees
Operating statistics* | * Operating statistics cover SATS and its subsidiaries, but does not include associates and joint ventures. |
Cargo/Mail | Passengers | Gross Meals | Flights | Ship Calls |
Processed | Handled | Produced | Handled | Handled |
1.2M | 4.1M | 43.7M | 55.1K | 96 |
(tonnes) | ||||
FY2019-201.8M | FY2019-2084.6M | FY2019-2082.5M | FY2019-20351.4K | FY2019-20258 |
Resizing of manpower | |||||||||||||||
to manage lower | |||||||||||||||
aviation volumes | 12,977 | ||||||||||||||
contributed to the | |||||||||||||||
decrease in average | 13,738 | 13,147 | 14,306 | 17,155 | |||||||||||
number of employees | |||||||||||||||
FY2016-17 | FY2017-18 | FY2018-19 | FY2019-20 | FY2020-21 | |||||||||||
Earnings per share (Basic) | Dividends per share | Net asset value per share | |||||||||||||
(7.1)¢ | NIL | 138.1¢ | |||||||||||||
FY2016-17FY2017-18FY2018-19FY2019-20 | FY2016-17 | FY2017-18FY2018-19FY2019-20 | FY2016-17FY2017-18FY2018-19FY2019-20 | ||||||||||||
23.2¢ | 23.4¢ | 22.3¢ | 15.1¢ | 17¢ | 18¢ | 19¢ | 6¢ | 143.9¢ | 146.4¢ | 148¢ | 144.7¢ |
Combined revenue* | |||
FY2018-19 | FY2019-20 | FY2020-21 | |
Combined | S$ 2,587.3M | S$ 2,621.7M | |
Revenue | |||
Consolidated | |||
Revenue | |||
S$ 1,263.6M | |||
S$ 1,828M | S$ 1,941.2M | S$ 970M | |
- Combined revenue is the sum of the consolidated revenue of the Group and its proportionate share of revenue from its associates/joint ventures (Aggregated Revenue - Non-SFRS(I))
- EBITDA refers to earnings (including share of results of associates/joint ventures) before interest, tax, depreciation and amortisation; and excluding one-off items.
Free cash flow
S$ 56.2M | ||||||
FY2020-21 | S$ 168.3M | |||||
FY2019-20 | ||||||
S$ 208M | ||||||
FY2018-19 | ||||||
S$ 146.3M | ||||||
FY2017-18 | ||||||
S$ 220.8M | ||||||
FY2016-17 | ||||||
Debt-equity ratio
0.56 times
FY2019-20 | FY2018-19 | |
0.39 | 0.06 | |
FY2017-18 | FY2016-17 | |
0.07 | 0.07 | |
Increase in debt to strengthen the Group's liquidity position. Excluding the impact of adopting SFRS (I) 16, debt-equity ratio will be 0.44 times (FY2019-20: 0.26 times)
06. Renewed Vigour | SATS Ltd. Annual Report 2020-2107. |
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SATS Ltd. published this content on 30 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 July 2021 01:06:10 UTC.