Post on 26-Aug-2020
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25 January 2013
Q3 & 9M FY2012/13 ResultsFinancial year ending 31 March 2013
ContentsExecutive SummaryGroup ResultsSegment ResultsOperating ExpensesFinancial Position, Cash Flows, Dividend
Developments & Outlook
The following presentation contains forward looking statements by themanagement of Singapore Post Limited ("SingPost"), relating to financial trendsfor future periods, compared to the results for previous periods.
Some of the statements contained in this presentation that are not historicalfacts are statements of future expectations with respect to the financialconditions, results of operations and businesses, and related plans andobjectives. Forward looking information is based on management's currentviews and assumptions including, but not limited to, prevailing economic andmarket conditions. These statements involve known and unknown risks anduncertainties that could cause actual results, performance or events to differmaterially from those in the statements as originally made. Such statements arenot, and should not be construed as a representation as to future performanceof SingPost. In particular, such targets should not be regarded as a forecast orprojection of future performance of SingPost. It should be noted that the actualperformance of SingPost may vary significantly from such statements.
“$” means Singapore dollars unless otherwise indicated.
Forward-looking Statements – Important Note
Executive Summary
Good revenue performance• Businesses riding on e-fulfilment growth in Singapore and region• Boost from M&A (Novation Solutions)
Pushing on with multi-year transformation• Becoming the regional leader in e-commerce logistics and trusted
communications• Significant efforts and investments required
Profit pressure• Impact of continued mail volume declines, growth in lower-margin
businesses• Higher costs, including investments into service quality and growth
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YoY % chg
RevenueOperating expenses
Underlying net profit
+14.5%+19.6%
+2.5%
Q3 FY12/13
$171.0M$133.4M
$39.8M
YoY % chg
+10.1%+13.9%
+0.5%
9M FY12/13
$476.3M$372.0M
$109.1MNet profit (5.1%)$39.5M (0.9%)$110.4M
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Group Results: Strategic Overview
Moving towards being the Regional Leader ine-Commerce Logistics and Trusted Communications
Digital Services
Regional Logistics
e-Commerce
Retail & Fin’lServices
REGIONAL LEADER IN E-COMMERCE LOGISTICS & TRUSTED COMMUNICATIONS
Domestic and international mail networks for e-commerce
Trusted Singapore postal service provider
Secure communications channels
• Quantium Solutions as regional delivery & warehousing company
• Partners & agents to complement Quantium’s reach and capabilities
• Trusted Singapore digital communications provider (e.g. vBOX)
• Regional set-up via DataPost, Novation Solutions and other partners
• Branch network in Singapore• Payment solutions
e-commerce and e-fulfilment solutions for consumers and businesses (vPOST, Clout Shoppe)
e-Commerce businesses showing good growth• In Mail, revenue from packages grew ~30% YoY• Domestic logistics’ share of e-commerce business up
from 2% to 20% YoY• Signed up ~100 new e-commerce business
customers in 2012• vPOST and Clout Shoppe revenue grew ~30% YoY
Our 5 pillars contribute
to the vision
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Note: Q3 FY2011/12 figures in italics
Revenue by business segments
Revenue by geography
Mail64.7%
(62.9%)
Retail6.9%
(7.4%)
Logistics28.4%
(29.7%)
Local82.4%
(86.5%)
Overseas17.6%
(13.5%)
• Changing revenue mix
Increasing proportion of overseas contributions
Growth in overseas contributions due to Quantium Solutions and Novation Solutions
Moving towards being the Regional Leader ine-Commerce Logistics and Trusted Communications
Group Results: Strategic Overview
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Group Results: Q3 FY2012/13 P&L Highlights
* Profit after tax attributable to equity holders of the Company; underlying net profit excludes one-off items.
$M Q3 FY11/12
Q3 FY12/13
% change
Revenue 149.4 171.0 +14.5%
Other income 13.8 12.5 (9.5%)
Operating expenses 111.6 133.4 +19.6%
Operating profit 51.6 50.1 (3.0%)
Share of profit of assoc& JVs 1.0 0.7 (32.2%)
Net finance costs 2.5 2.6 +5.2%
Income tax 8.6 8.7 +1.5%
Net profit* 41.6 39.5 (5.1%)
Underlying net profit* 38.9 39.8 +2.5%
Growth from new business areas as we continue to invest into service quality, productivity and growth
Driven by e-commerce volumes; consolidation of Novation Solutions
One-off items in miscellaneous income in both periods
Business volume growth; investment into service quality, productivity and growth
Positive growth in business segment profits; offset by higher corporate costs for transformation and one-off items
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Domestic mail
Revenue breakdown
International mail
Hybrid mail *
Philatelic
Segment Results: Mail Q3 & 9M Performance
* DataPost and Novation Solutions Continued letter volume decline, offset by growth in other business lines
Consolidation of Novation Solutions acquired in May 2012
Boost from e-commerce transhipment volumes in international mail business
Q3 FY12/13
$62.6M$43.8M
$10.4M
$1.3M
% change
+3.9%+37.7%
+113.0%
+27.6%
9M FY12/13 % change
$182.6M +1.8%$109.5M +19.2%
$28.4M +96.8%
$4.0M +18.1%
Revenue
Operating profit
Revenue (excl Novation)
$118.1M
$39.6M
$112.8M+20.5%
+12.7%
+15.1%$324.5M +12.3%
$107.3M +4.0%
$311.2M +7.7%
Op profit 2.0%
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Segment Results: Mail Q3 & 9M Performance
Q1 FY12/13
Q2 FY12/13
Q3 FY12/13
9M FY12/13
Mail volume – YoY % decline (2.5%) (3.1%) (1.8%) (2.4%)
Continued decline in domestic mail volume
Fifth quarter of mail volume decline (since Q3 FY11/12)
Investing in service quality and productivity even as mail volumes and costs remain under pressure
Increasing operating costs – wages, utilities, rental
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Q3 FY12/13 % change
* vPOST , Transhipment & others
Segment Results: Logistics Q3 & 9M Performance
Growth in regional e-fulfilment activities
Continued investments to develop Quantium Solutions into a total logistics solutions and e-fulfilment provider in the region
9M FY12/13 % change
RevenueOperating profit
$63.2M +10.9%$4.4M +12.1%
$175.7M +8.9%$9.7M +15.3%
Quantium Solutions
Revenue breakdown
Speedpost
Others *
$42.3M +12.1%$15.3M +4.2%
$5.7M +22.1%
$118.8M +11.6%$43.1M +2.6%
$13.8M +6.6%
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Segment Results: Retail Q3 & 9M Performance
Q3 FY12/13 % change
Continued revenue growth in financial services and e-commerce activities
* Excluding inter-segment
9M FY12/13 % change
RevenueOperating profit
$21.1M +19.8%$2.7M +12.6%
$57.6M +12.5%$9.5M +36.4%
Retail – agency, products & others
Revenue breakdown *
Financial services
$6.0M +7.0%
$5.8M +5.9%
$16.5M +9.3%
$18.2M +13.6%
Excl new e-commerce activities 8.4%
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Operating Expenses
Q3 FY12/13 % change 9M FY12/13 % change
Operating expenses $133.4M +19.6% $372.0M +13.9%
Volume relatedLabour & relatedAdmin & other DepreciationSelling
$52.1M +29.6%$51.2M +15.1%$19.7M +13.6%$8.3M +15.0%$2.1M (9.2%)
$138.4M +19.1%$151.0M +11.9%$55.3M +14.8%$21.9M +2.1%$5.4M (8.6%)
Continued investments in service quality and growth
Spending control over non-strategic expenses
Increase in volume related expenses due to sharper growth in international shipments and peak season expenses
Focus on efficiency and optimisation measures to enhance productivity, manage costs
0%
5%
10%
15%
20%
Q1 Q2 Q3 Q4 Q1 Q2 Q3
RevenueOperating expenses
FY2012/13FY2011/12
Revenue $171.0M +14.5% $476.3M +10.1%
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Strong financial positionHealthy cash flows
Q3 interim dividend payable - 1.25 cents/share28 February 2013
Financial Position, Cash Flows, Dividend
9M FY11/12
9M FY12/13
Net cash from operating activities 125.4 129.6
Net cash from/(used in) investing activities (50.8) 24.9
Net cash used in financing activities (140.0) (110.3)
Net increase/(decrease) in cash (65.4) 44.2
Cash & cash equivalents 273.3 661.5
Mar 2012
Dec 2012
Ord. shareholders’ equity $313.0M $318.6M
Borrowings $505.7M $507.4M
Net cash $111.6M $154.1M
Net debt/(cash) plus perp. securities to equity 0.8x 0.6x
EBITDA to interest expenses 17.2x 17.6x
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Developments & Outlook
• Increased pace of execution
M&A deals announced
Innovative products and services being introduced
• Pushing on with multi-year transformation
Significant efforts and investments required
Higher capex over next 2-3 years investing into service quality, technology and productivity
M&A deals completed/announced in FY2012/13
Famous Holdings, Singapore
General Storage (Lock+Store), Singapore
Dash Logistics, Vietnam
Novation Solutions, Hong Kong
SingPost – Ready for the Future
Parcel stations
“The Regional Leader
in e-Commerce Logistics
and Trusted Communications”
ScanDelight
The complete set of financial statements is available on SGXNET and our website at www.singpost.com.