Acquisition of Singapore Cruise Centre

Transcription

1 (Prefer to use a daylight pix and a SATS pix on cruise) Acquisition of Singapore Cruise Centre Growing SATS Gateway Services 26 September

2 Forward Looking Statements 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 forwardlooking statements to reflect events or circumstances which arise after publication. 2

3 Agenda Key Transaction Highlights Strategic Rationale Financial Effects Timeline for Transaction Completion Conclusion 3

4 Key Transaction Highlights 4

5 Transaction Terms SATS through our subsidiaries SATS Airport Services and SATS- Creuers Cruise Services (SATS-Creuers) proposed to acquire 100% of Singapore Cruise Centre from Temasek. Purchase consideration of S$110m is based on current market conditions and business prospects of Singapore Cruise Centre. SATS Airport Services will own approximately 92% of Singapore Cruise Centre while SATS-Creuers will hold the remaining 8%. As a result, SATS will effectively own 96.8% of Singapore Cruise Centre, contributing S$106.5m to the purchase consideration. We intend to use internal funds for this transaction. 5

6 Transaction Terms SATS Airport Services will grant SATS-Creuers a call option, expiring on 31 March 2014, to buy a further 42.3% of Singapore Cruise for S$46.5m. If exercised, SATS-Creuers will increase its shareholding in Singapore Cruise Centre to approximately 50.25% while SATS Airport Services will own the remaining 49.75% stake. SATS will then effectively own 79.9% of Singapore Cruise Centre, reducing its contribution to the purchase consideration to S$87.9m. 6

7 Transaction Terms Before exercise of call option After exercise of call option S$5.25M SATS Airport Services 60.0% 40.0% Creuers S$3.50M S$33.17M +S$27.92M SATS Airport Services 60.0% 40.0% Creuers S$22.11M +S$18.61M SATS- Creuers S$8.75M SATS Airport Services SATS- Creuers S$55.28M 42.3% stake for S$46.53M SATS Airport Services S$8.75M 8.0% 92.0% S$101.25M S$55.28M 50.25% 49.75% S$54.72M S$110.00M S$110.00M Singapore Cruise Centre Singapore Cruise Centre 7

8 About Singapore Cruise Centre Singapore-based cruise and ferry terminal operator: International Passenger Terminal, HarbourFront Regional Ferry Terminal, HarbourFront Regional Ferry Terminal, Tanah Merah Domestic Ferry Terminal, Pasir Panjang Licence from the Maritime and Port Authority of Singapore to operate terminals until 30 September 2027 Profitable and strong cash-generative business, reporting revenue of S$45m and profit before tax of S$16.7m in FY

9 Strategic Rationale 9

10 Our Strategy Grow our core businesses of Gateway Services and Food Solutions Adopt a focused and disciplined approach to drive both organic and inorganic growth Access value creating opportunities in Asia Pacific and the Middle East 10

11 Cruise Extension of Our Gateway Capabilities Track record in facilitating movement of passengers, baggage and cargo Presence at both airport and cruise terminals helps to enhance service experience of cruise lines and passengers: Extend our Cruise-Fly and Fly-Cruise products to cruise terminals, enabling passengers to enjoy convenient, seamless transfers to and from Singapore Changi Airport 11

12 Positive Prospects for Cruise in Singapore Singapore Cruise Passenger Throughput 1, in millions By : Singapore Tourism Board, Singapore's Tourism Sector Performance for 2012, 27 March : Singapore Tourism Board, MSN, 23 May

13 Progress in Growing Our Cruise Business December 2011 SATS-Creuers won tender to operate and manage Marina Bay Cruise Centre Singapore (MBCCS) March 2013 In first 10 months of operations, MBCCS received more than 80 ships and over 230,000 passengers International Passenger Terminal, Harbourfront SINGAPORE Marina Bay Cruise Centre Singapore May 2012 SATS-Creuers commenced cruise handling and terminal management at MBCCS September 2013 SATS to acquire Singapore Cruise Centre 13

14 Enhancing Singapore as a Regional Cruise Hub Combined area of 40,800 square metres Capacity and flexibility to handle cruise ships of various sizes, up to Oasis-class 1 Four berths with pier lengths ranging from 255 metres to 360 metres and pier width from 35 metres to 120 metres More than 330 ship called and over 910,000 passengers arrived at MBCCS and International Passenger Terminal, HarbourFront in FY South China Sea 3 4 1: Oasis-class ships have a gross tonnage of 225,282 and the capacity to carry over 5,400 passengers 14

15 Financial Effects 15

16 Financial Effects of Proposed Transaction (for illustrative purpose only) SATS Group FY Before Acquisition Pro forma After Acquisition (Call Option Not Exercised) Pro forma After Acquisition (Call Option Exercised) Revenue (S$m) 1,819 1,864 1,864 Earnings Per Share (Singapore cents) Net Tangible Assets (S$m) 1,119 1,032 1,047 16

17 Transaction Benefits Unique opportunity to enhance shareholder value Value creation from growing Singapore as a regional cruise hub and homeport Fair valuation in view of business prospects and current market conditions Immediately accretive to earnings 17

18 Timeline for Transaction Completion 18

19 Timeline for Transaction Completion SPA Signing Regulatory Approvals EGM Completion Acquisition is subject to regulatory approvals from Competition Commission of Singapore, and Maritime and Port Authority of Singapore Approval process may take between 30 to 150 working days indicatively As this is an Interested Person Transaction, shareholder approval is required Upon receipt of regulatory approvals, we will proceed to convene an EGM to obtain shareholder approval Temasek and its associates will abstain from voting at the EGM 19

20 Conclusion 20

21 Creating Value for All Stakeholders Good for SATS and Shareholders Acquisition will grow our gateway business more widely, both in Singapore and Asia Pacific Singapore Cruise Centre is profitable and strong cash-generative Positive business prospects and fair valuation Good for the Industry Potential to improve operations and optimise efficient utilisation of berths and resources Unique presence at both airport and cruise terminals will facilitate convenient transfers and enhance passsenger travel experience Good for Singapore The combined entity will bolster Singapore s position as an attractive regional homeport, benefitting the economy It will also work with industry stakeholders to jointly promote Singapore as regional cruise hub 21

22 Q&A 22