THE 2 S COMPANIES. Disclaimer

DISCLAIMER: I ONLY WANT TO SHARE MY PERSONAL OPINION ON THESE 2 COYS SO NOT A RECOMMENDATION FOR YOU TO INVEST IN. SIA Operate business in passenger transportation, cargo air transportation and Maintenance services under SIAEC: engineering company. BUSINESS SEGMENT

Passenger and cargo transportation

Scoot: passenger transportation SIA SATS Est 10.5% SQ own estimated 77% SHARES 80% Est 6.2% Rev :Est 3% Others business: Estimated 0.4% Revenue breakdown BUSINESS SEGMENT: SIA BUSINESS SEGMENT: SIA PASSENGER service BUSINESS SEGMENT: SIA PASSENGE R SILK AIR  BUSINESS SEGMENT: SIA PASSENGER SILK AIR BUSINESS SEGMENT: SIA PASSENGER

SIA competitor I feel SQ need to retain consumer in order to survive in the airline industry. Fleet managme nt PPS Club & Kris flyer membershi p

RetentionAirport operation Customer experience • The Customer Experience Department (CExD) was formed in February 2016 to further improve ’ emphasis on delivering exceptional customer experiences worldwide. Product & services

 In-flight Services  Personalisation in In-flight Dining  New Wine Sourcing Approach  Partnerships with Wellness Brands  In-flight Offerings on SIA’s A350- 900ULR Flights Business segment: SIA Cargo

BUSINESS SEGMENT: SIA CARGO

 THRUCOOL, a new product that offers dedicated cold chain services to safeguard the integrity of high-value, time-sensitive and temperature-controlled pharmaceutical shipments during air transportation. These include priority uplift and handling, quick ramp transfers at airports and cold room facilities, as well as thermal blankets and covers for crucial insulation from external elements. At the same time, SIA Cargo launched a pharmaceutical ‘quality corridor’ along the Zurich-Singapore-Sydney route. It is currently working to expand the number of such corridors to include other key pharmaceutical lanes across its network. In line with SIA’s digital transformation, SIA Cargo also implemented several digital initiatives to enhance customer experience. Robotic Process Automation was rolled out in January 2019 to automate the processing of selected cargo bookings, thereby enabling SIA Cargo stations to respond to customers even more promptly. A new Cargo Operations Control Tower was launched the following month in February 2019, offering a single view of cargo shipment statuses as well as providing real-time alerts to staff, flagging shipments which are potentially affected by flight disruptions. BUSINESS SEGMENT: SIA ENGINEERING

BUSINESS SEGMENT: SIA ENG

Airframe Maintenance & Overhaul BUSINESS SEGMENT:  Line Maintenance & Technical Handling SIA ENG BUSINESS SEGMENT: SIA ENG BUSINESS SEGMENT: SIA ENG BUSINESS SEGMENT: SIA ENG BUSINESS SEGMENT: SIA ENG BUSINESS SEGMENT: SIA ENG Business Summary SATS Ltd. is an investment holding company, which is engaged in providing food solutions and gateway services. The Company's other activities include rental of premises and provision of management services to related companies. The Company's operating segments include Food Solutions, Gateway Services and Corporate. The Food Solutions segment provides inflight and institutional catering, food processing, distribution services and airline laundry services. The SATS Gateway Services segment provides both airport and cruise terminal services. The airport terminal services include airfreight handling services, passenger services, aviation security services, baggage handling services and apron services to the Company's airline customers. On the provision of cruise terminal services, the Gateway Services segment manages and operates the Singapore International Cruise Terminal at Market Cap Marina South. The Corporate segment is engaged in the provision of 2.9744 Bil rental of premises and other services.

Number of employees : 14 306 people. Estimated Revenue Segment 54.05% Estimated 45.83%

OTHERS (RENTAL AND OTHER Estimated SERVICES) 0.12% BUSINESS SEGMENT: SATS SATS COMPETITOR

MARKET SHARES

20

80

SATS & ASIG SATS HAS A STRONG MOAT TO MAKE VERY HARD FOR OTHER COMPETITOR TO PENETRATE SATS Business segment: Food solution

Each year, SATS works with our chefs and culinary teams to cater delicious and nourishing As part of our Food Solutions business, SATS works closely with our institutional meals for millions of passengers travelling around the world.Passionate about enabling customers to develop delicious, nourishing meals and customised end-to-end people to eat well no matter where they are, we make sure that every meal is tasty and services that help to promote better health and eating habits. nutritious, made with fresh and responsibly sourced ingredients.By offering aviation Equipped with state-of-the-art technology, our passionate team of dietitians, food services such as airport lounge management, private jet catering and travel retail, we help technologists and in-house panel of award-winning SATS Culinary Consultants to create positive airport and inflight experiences for passengers as they make their way work together to develop new and authentic recipes, curating fresh, tasty and around the world. nutritious menus that meet the unique requirements of our customers. From large-scale catering to tailored in-patient menus and youth engagement efforts, we are proud to use our expertise, technology and culinary creativity to support the work of healthcare providers, educational institutions and government agencies.

Business segment: Food solution

Designed to meet the unique needs of private jet passengers A joint venture between SATS and Delaware North Companies, SATS Delaware North harnesses the for discretion, privacy and speed, the Seletar Business shared experience and excellent track record in catering for institutions and large-scale sporting and Aviation Centre (SBAC) offers premium bespoke services for premium events. a truly exceptional and seamless travel experience. Business segment: Food solution

As Asia’s leading food solutions provider, we are passionate about providing quality, sustainable and SATS takes pride in delivering quality, customised linen healthy food to our customers around the region.Our food-service solutions comprise an extensive list of and laundry services to our customers in the aviation, products from around the world including nourishing soups and sauces, stringently sourced meat and healthcare and hospitality sectors, so that their seafood, frozen food as well as delicious ready-to-eat and ambient meals.To meet the growing demand customers can enjoy the care and comfort they deserve. for healthier and more sustainable food solutions, we are constantly enhancing our offerings with the From wet washing to dry cleaning, we provide an introduction of new and innovative options such as plant-based proteins and sustainable food packaging. extensive suite of professional services including special care requirements for aircraft and hotel bedding, food An expanded sourcing and distribution network through our wholly owned subsidiary, Country Foods Pte. and beverage linen, company uniforms and personal Ltd (Country Foods) – one of Singapore’s largest food importers, distributers and manufacturers, provides garments. valuable access to markets across the region.

With a Digital Integrated Supply Chain, which provides turnkey solutions with end-to-end logistics, warehousing, sourcing and procurement capabilities, we serve as the ideal one-stop, go-to-market platform for food-service solutions in Asia Business segment: Gate way services

For more than 60 years, SATS has been serving Since the beginning of commercial , SATS has played an passengers at Singapore , creating active role in our overall growth as an international aviation hub in the region. positive and unique encounters that have become a signature part of their travel experiences here. At Changi Airport, our apron services team continues to serve with pride, upholding the highest professional and safety standards. Handling a wide and With the needs of every passenger in mind, we offer a complex array of aviation activities, we help to ensure smooth and safe suite of quality passenger services that range from operations across the airport. seamless check-in facilities, special care services for those who need a little extra assistance, as well as Staffed by a well-rounded team of young talents and experienced professionals, premier check-in counters and lounges. we tap on our strong technological and human capabilities to provide a broad range of customised services available 24 hours a day, seven days a week. For VIP passengers, SATS Affinity offers meet-and- greet services, buggy transfers between terminals and access to exclusive passenger lounges located throughout the airport. Business segment: Gate way services

Each year, SATS handles a majority of the airfreight volume coming through As the leading gateway services provider for low cost carrier flights from Singapore’s Changi Airport and Changi Airport, one of the world’s best and busiest cargo hubs. around the region, SATS has developed a business model that complements their no-frills approach while With a total of six airfreight terminals including an Express Courier Centre, a fulfilling their need for innovative solutions and quality services. Cargo 2000 quality programme and C2K certification, we have the capacity to handle millions of tonnes of cargo connecting seamlessly from Singapore to the With decades of industry experience and an award-winning team of technical specialists, we uphold the rest of the world. most rigorous performance and safety standards to ensure that flight operations are smooth, efficient and Equipped with state-of-the-art technology, automated systems and decades of safe. experience, our highly professional team includes certified trainers who can provide Initial, Recurrent and Awareness training on the processing of dangerous At Singapore’s Changi Airport, our subsidiaries Asia Pacific Star and GTR provide a comprehensive goods. range of ground handling services including guest handling, baggage services, aircraft handling, security services and cargo handling services. GTR also provides ground handling services for full service carriers and operates an an air cargo hub at the Kuala Lumpur International Airport Air Cargo Terminal 1 in Sepang. Business segment: Gate way services

Operated by SATS Seletar Aviation Services, the SBAC is located at a separate wing of Seletar SATS-Creuers Cruise Services operates Marina Bay Cruise Airport and offers personalised and private reception, as well as dedicated clearance Centre Singapore, one of the largest cruise terminals in Asia that is quick and discrete. specially designed to accommodate large ships and thousands of passengers at a time. Our comfortable lounge facilities provide well-heeled travellers with a delectable range of quality For arriving cruise passengers scheduled for same-day flights refreshment, a quiet relaxation corner and a suite of business amenities including ergonomically- from Singapore, our Cruise-Fly services offer the benefits of designed work pods and meeting spaces equipped with state-of-the-art audio-visual technology. early check-in including baggage drop-off and collection of boarding passes. For an exclusive taste of SATS’ culinary innovation and expertise, private jet travellers can indulge in With a growing suite of innovative, quality services , our goal exquisite inflight fine dining and special dietary meals, apart from the convenience of express laundry is to provide you with a comfortable and seamless travel services and even a personal shopper as part of our premium offerings. experience across your journey.

With an extensive menu of gourmet options, meals are personalised to suit the unique needs of individual travellers and delivered right on time. Business segment: Gate way services

Travel Retail As the longest-running force in Singapore, SATS Security Services With extensive onboard travel retail expertise and experience, we provides a comprehensive range of professional security services and solutions to can provide airlines with value-added marketing support as well aviation and non-aviation customers. as sales training opportunities for cabin crew to drive ancillary With years of experience and training, our officers are well-equipped to deliver revenue. effective protection and safekeeping of people, assets, and infrastructure. Serving Our growing range of innovative onboard offerings includes with pride and passion, our mission is to be the security agency of choice. specially curated, chilled and shelf-stable ambient meals, duty- free products as well as inflight entertainment options. To facilitate seamless operations, we also offer end-to-end logistics support such as demand forecast planning, procurement and warehouse management. Along with POS technology and integrated systems, we offer business intelligence solutions that can help airlines identify critical areas of improvement through data analytics and customised reporting for sales and load optimisation. NETWORK & GROWTH: GREATER CHINA

Through strategic expansion in China, we are building and consolidating a network of food and gateway operations to serve our customers across the market. In collaboration with key partners, we tap on our gateway expertise, growing network of central kitchens, and a digital integrated supply chain to deepen our presence in the thriving Yangtze River Delta and Jing-Jin-Ji Metropolitan Regions. NETWORK & GROWTH: INDIA

India is a key growth market supported by our strong network of partners and subsidiaries. As part of our growth strategy, we are focused on streamlining operations and integrating our aviation and non- aviation businesses to better serve our customers. Our customers include major airlines, airports, and global consumer food brands such as Starbucks. NETWORK & GROWTH:JAPAN

Growing our presence in the Japanese market through our subsidiary SATS TFK, we have established aviation catering, kitchen and restaurant operations across Narita and Haneda International Airports, as well as commercial food operations in key locations across central Japan. NETWORK & GROWTH: MALAYSIA

As the leading ground handler in Malaysia, our subsidiary GTR, supports the country’s major airports and airlines such as AirAsia. GTR also operates an air cargo hub at the Kuala Lumpur International Airport Air Cargo Terminal 1 in Sepang. GTR provides a comprehensive range of ground handling services such as; guest handling, baggage services, aircraft handling, security services and cargo handling services. NETWORK & GROWTH: MIDDLE EAST

With aviation hubs and a thriving network of cargo corridors located across the region, the Middle East is a strategic growth market for our business.

In Saudi Arabia, SATS is the country’s first international cargo handler, operating a cargo terminal at Dammam’s King Fahd International Airport (KFIA) with a dedicated cold chain facility and the capacity to handle 150,000 tonnes of cargo annually. This is followed by the SATS Cargo Terminal at King Khalid International Airport (KKIA) in Riyadh, which is designed to handle 600,000 tonnes of cargo annually.

At Oman’s Muscat International Airport, TRANSOM SATS Cargo is the premier cargo handler, serving 30 of the world’s leading airlines including Oman Air, SWISS, British Airways, KLM, Emirates, Etihad and Qatar Airways. At 32,000 sqm, the terminal is fully equipped with the latest technologies and facilities to handle a wide range of cargo, including pharmaceutical products, perishables, live animals and dangerous goods. GROWTH Food solution: Sats customers RISK FACTOR: SIA /SATS

 Regulated risk)  Cybersecurity risk  Inflation risk (Oil and food price, salary, materials & maintenance etc)  Economic  Tourism  Terrosim  Pandemics outbreak example covid 19  SIA: The brand and the trademark seems to be well known globally but I feel that too many airlines as competitor. No pricing power  SATS: I do feel it has strong Competitive advantage in Spore competitor market that can easily fend off other competitor easily and maintain a long term profitability for its Any moats? business RIGHT MANAGEMENT: LEADERSHIP, BACKGROUND AND EXPERIENCE RIGHT MANAGEMENT: LEADERSHIP, BACKGROUND & EXPERIENCE • Mr Hungate is the President and Chief Executive Officer of SATS, with overall responsibility for leading the SATS Group. He is a Board Director and a member of the Board Executive Committee. Mr Hungate joined SATS as Executive Director in July 2013 and assumed his current role on 1 January 2014. • Prior to that, Mr Hungate was the Chief Executive Officer of HSBC Singapore. He joined HSBC in 2007 as Group Managing Director of Personal Financial Services and Marketing, based in London. With over 25 years of global leadership experience, Mr Hungate also served as the Managing Director, Asia Pacific for Reuters, based in Hong Kong, and Co-Chief Executive Officer, Americas and Global Chief Marketing Officer for Reuters, based in New York. • Mr Hungate first joined the SATS board as an Independent Director in July 2011. • He is currently an Independent Director of (UOB) Limited and serves as a Board Member of the Singapore Economic Development Board (EDB), and member of the Future Economy Council. • Mr Hungate holds a Masters degree in Engineering, Economics and Management from Oxford University and graduated as a Baker Scholar from the Master of Business Administration (MBA) programme at Harvard. KEY PERSON MAJOR SHAREHOLDER KEY PERSON: SATS SHAREHOLDER: SATS SIA Quality of earning= op cash flow (3593) /net income SIA (723)=4.96

30%<

FCF Must be Positive SIA Cash ratio: 0.199 SIA  Market cap: 6.3582 Bil and EV:14.35. It seems like the EV higher than market cap, this is going to tell me SIA might have more debts and may be overvalued. But if I use ps and pe ratio, it seem like the stock price is undervalue.

SIA It seems like SIA has better advantage to convert its sale into cash faster than SATS. Payable period to their suppliers both ok. VALUATION: SIA

 Using 5 yrs average ps ratio to calculate the intrinsic value= Sale per share (revenue/ outstanding shares) x 0.76=9.98 x0.76= $7.59/-

Sales per share= 16870/1689=9.98

Using 5 yrs average pe ratio to calculate the intrinsic value= Eps 0.43 (- 40%) x 21.98=$5.67 Quality of earning:1.22

Positive and increase SATS over year

Double digit and consistent but increase over years 30%<

Dividend: stay consistent but prefer payout ratio not more than 80% SATS SATS Cash ratio: 0.44 VALUTAION: SATS

2.9744 Bil for mkt is lower than Enterprise value is 3.24 Bil. It seems like SATS has a bit of debt and maybe a bit overvalue. If I based on avg pe ratio vs current PE ratio. It seems to be slightly undervalue. If I used dividend as my entry price, it seem to be fair.

SIA cashflow

Sats cashflow Valuation: SATS

Dividend, I will take the lowest which is 0.13. If based on current price 2.66, it tells me I have a return of 4.9% For dividend, I prefer SATS consistency but I am not sure if will still paying dividend due to covid 19

CURRENT RISK

GO FOR LONG TERM

POSITION SIZE IT INVESTMENT PLAN AND DIVERSIFY YOUR MONEY.

THANK YOU FOR WATCHING