Contents
Investment thesis........................................................................................................... 3
Why SATS? 3
Valuation....................................................................................................................... 6
Peer comparisons 8
Industry and operations analysis ................................................................................. 10
Aviation services: ground handling/in-flight catering 10
Non-aviation: Food services 14
Relationship with SIA 16
Overseas operations and associate contributions 16
SFI acquisition analysis ............................................................................................... 18
The rational of the SFI acquisition 18
Strong management in place to ensure best execution 23
Earnings outlook and forecast ..................................................................................... 24
Performance review 24
Balance sheet health and cash flow analysis 27
DuPont analysis 28
Appendices .................................................................................................................. 30
1. Devil’s advocate: Risks to our investment case 30
2. Company background – One of a kind 31
3. Other information 35
Financial statements – P&L, Balance sheet and Cash flow ........................................ 36