Satair's new growth strategy and long-term financial objectives

With its new growth strategy “Destination 2014”, Satair sets goals for the next 3-5 years that are ambitious, but realistic. The Group expects to be able to grow revenue at a rate considerably above that of the underlying market while at the same time improving profita-bility.

| Source: Satair A/S Satair A/S

The financial objectives of the strategy
The financial objectives for the next 3-5 years are:

  • Average annual revenue growth in the region of 15-17% before new acquisitions
  • An EBITDA margin that inclines slowly to the level of 11% end-of-period
  • A free cash flow, before any acquisitions, of minimum USD 30 million in the last year of the period
  • A return on capital, stated as ROIC[1], of minimum 18% p.a. end-of-period
  • A gearing of two to three times EBITDA, i.e. EBITDA rated against net interest-bearing debt end-of-period

Capital structure and dividend
After the divestment of its OEM Division Satair is debt-free and plans to adjust its capital structure through potential acquisitions of companies and product lines or through pay-outs to the shareholders based on the objective of a gearing of two to three times EBITDA compared to net interest-bearing debt. The capital structure is expected to be adjusted over the strategic period.

The plan is to adhere to the existing dividend policy with an expected pay-out ratio of 30%, supplemented by possible extraordinary pay-outs to the shareholders in the form of a share buy-back or extraordinary dividend after taking potential acquisition candidates and the capital market conditions into consideration.

In continuation of the above and in accordance with information provided at the annual shareholders meeting in October 2010, it is proposed to pay out an extraordinary interim dividend in the summer of 2011 of DKK 50 per share corresponding to approx. USD 41 million.

New incentive program
A new incentive program will be established to support the strategy.

Extraordinary general meeting
For the purposes of providing information on Satair's situation and deciding on any interim dividend, Satair is convening an extraordinary shareholders meeting to be held on June 15, 2011 at 4:00 pm at the Crowne Plaza Copenhagen Towers Hotel, Ørestads Boulevard 114-118, 2300 Copenhagen S, Denmark.

[1] Including goodwill and after tax

         CEO John Staer, jst@satair.com, +45 4015 9286
         CFO Michael Hoejgaard, mih@satair.com, +45 4030 4349

Attachments

Fond-203 GB New growth strategy and financial objectives.pdf