SATS Ltd.

Welcome to SETS Third Quarter FY 2021-22 Business Update. Before we begin, SETS would like to remind you that certain comments made during this call may contain forward-looking statements. Many of these forward-looking statements can be identified by the use of words such as may, will, expect, anticipate, estimate, assume, continue, project, plan, and similar words and phrases. The company's actual results in future financial conditions may differ materially from those expressed in any such forward-looking statement as a result of many factors that may be outside the company's control, including but not limited to changes in the business environment. The company does not undertake any obligation to update its forward-looking statements. I will now hand over the call to Carolyn Kueh of SETS. Please go ahead, Carolyn.

Hi. Good evening, everyone. Welcome to another SETS Press House. Just a while ago, we released our results for the third quarter and the nine months for FY20-21-22. With me in this room to take you through the results are Kerry Mock, President and CEO, Manfred Kjell, CFO, and we have also with us today, Jasper Oksikadee, CEO of Gateway Services, and Spencer Lowe, who is our Chief Strategy and Sustainability Officer. Okay, I'll hand the floor over to Terry who will take us through the results.

Hi, good evening everyone. This is my first analyst call with everyone. So let me just quickly run through the business updates. Go to the next slide, please. Okay, let me just start with the queue-on-queue operating stats. As you can see from the slide, a lot of positive momentum across the board. Operations obviously have improved quarter-on-quarter against previous years as well. Flight passenger volume obviously has increased, mainly due to VTLs and year-end holidays. In particular, flight increased to 30K in Q3. Passenger handled to 3.6 million, and this all mirrors the IATA trends in terms of very new passenger kilometer that grew almost 80% year-on-year in December. In Changi Airport alone, we had a huge growth in the packs. In fact, almost more than 800,000 packs being managed in December itself, and about 12,000 commercial flights handled in December itself. And that is a huge increase compared to December 2020. Non-travel sector continues steady growth, driven by institutional catering. Meals increased to 13 million in Q3. Cargo, which obviously has been a star performer for us, continues its robust growth. It's increased to 459,000 tonnes in Q3 due to strong demand for goods and obviously flight capacity as well. And this mirrors the IATA industry trends. where it's grown from almost 9% of pre-COVID level in December 2019. Employee figures held steady. Recruitment will be ramped up in the coming quarters, and I'll explain that a little bit later. Moving on to the next slide, which dives a little bit into the cargo slide. Cargo continues to grow in tandem with our international air cargo growth. CTK in December grew 9% from December 19 pre-COVID levels and volumes in 2021 offers grew more than 19% year-on-year. And this again mirrors the Changi stats of about 25% from December 2020. Key e-commerce events such as 11.11 and pre-Christmas has helped in the cargo capacity as flight increased as well. For us, cargo is a key business driver. It's also helped us in our cargo associates and overall cargo revenue growth was 17% Q3 and cargo continues to drive year-on-year growth of 26% and 4.1% quarter-on-quarter. If I move on to the next slide, we have been scaling up our innovation capabilities while developing local ventures for non-travel business. In particular, we have been investing in digitalization of our cargo and security command center. This is a very digitally connected center that enables us and our customers to share real-time decision-making by having data sharing amongst different parties. This has actually helped to increase our capability in this digitalization of our business model. Non-business travel, we have obviously grew 6.8% year-on-year to $133 million. And we have started new ventures as well on the food side, in particular food flicks and twists. And here you can see a couple of pictures in there of what we've done. It's our first actually retail outlet in Raffles Place. Moving on to the next slide. We have also extended our food solutions and gateway services internationally. In particular, in India, we have started construction of our first central kitchen to support the growing customer base. It is expected to be operational in 2023. We will be putting high-end technologies such as automated rice line, including IoT as well for food monitoring. And it also includes an innovation center that will link up with the innovation center here in Singapore as well as UK to offer such product and packaging expertise for the Indian market. This central kitchen will be critical for us to drive growth for India going forward and that will serve both aviation and non-aviation customers. Another item that pleased to announce and we just announced that as well, we have increased our stake in AAT by another 16.4%, making it a subsidiary for us going forward. And this is again part of our strategic move to actually do more cross-border e-commerce logistics in the Greater Bay Area for China. And obviously, Hong Kong is a very key cargo hub globally, and it's very important that we increase our presence in Hong Kong to drive that connectivity. If I go on to the next slide. Our business activities and growth strategies are really underpinned by strong corporate governance that allows us to build sustainable growth. So here you'll see we have recently won quite a few awards across the different categories, and this really reflects the strong credentials and our commitment to international standards that Stats aspires to as well. With that, I will hand over to Manfred who will give you the lowdown on all our financials.