Print this page

Miscellaneous

* Asterisks denote mandatory information

Name of Announcer * SINGAPORE POST LIMITED

Company Registration No. 199201623M

Announcement submitted on behalf of SINGAPORE POST LIMITED

Announcement is submitted with respect to *

SINGAPORE POST LIMITED

Announcement is submitted by * Leong Chee Sian (Ms)

Designation * Company Secretary

Date & Time of Broadcast 27-Jan-2006 17:08:47

Announcement No. 00052

>> Announcement DetailsThe details of the announcement start here ...

Announcement Title * Presentation Slides - SingPost Group's unaudited results for the third quarter and nine months ended 31 December 2005

Description Attached for information are the presentation slides for the briefing to analysts on 27 January 2006 on SingPost Group's unaudited results for the third quarter and nine months ended 31 December 2005.

Attachments:

Total size = 432K (2048K size limit recommended)

PresentationSlides-Q3FY0506.pdf

Close Window

Page 1 of 1MISCELLANEOUS

27/01/2006http://info.sgx.com/webcorannc.nsf/vwprint/26603BF8FE75C26B48257102001117D0?OpenDocum...

Singapore Post LimitedSingapore Post Limited

Quarter 3 & 9Quarter 3 & 9--Month FY2005/06 ResultsMonth FY2005/06 Results

27 January 200627 January 2006

1

Note Note –– Forward Looking StatementsForward Looking Statements

The following presentation contains forward looking statements by the management of Singapore Post Limited ("SingPost"), relating to financial trends for future periods, compared to the results for previous periods.

Some of the statements contained in this presentation that are not historical facts are statements of future expectations with respect to the financial conditions, results of operations and businesses, and related plans and objectives. Forward looking information is based on management's current views and assumptions including, but not limited to, prevailing economic and market conditions. These statements involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the statements as originally made. Such statements are not, and should not be construed as a representation as to future performance of SingPost. In particular, such targets should not be regarded as a forecast or projection of future performance of SingPost. It should be noted that the actual performance of SingPost may vary significantly from such targets.

“$” means Singapore dollars unless otherwise indicated.

2

AgendaAgenda

♦Highlights

— Results Highlights

— Business Highlights

♦ Financial Results

♦ Segmental Overview

♦Cash Flow, Dividends

♦Outlook

♦ Summary

3

Highlights: Q3 FY05/06 Group ResultsHighlights: Q3 FY05/06 Group Results

Q3 underlying performance*Q3 underlying performance* EBITDA

46.0

42.041.7

49.0

44.5 45.1

Q1 Q2 Q3

6.5%$M

6.7% 7.6%

Operating Revenue

91.589.4

100.5

108.0

96.8

103.0

Q1 Q2 Q3

8.2%

7.4%$M

12.6%

Net Profit

28.0

25.826.0

30.7

28.127.4

Q1 Q2 Q3

10.0%$M

5.2% 9.0%

FY04/05FY05/06

* Excluding exceptional items and depreciation impact from change in assets’ useful lives

4

Highlights: 9M FY05/06 Group ResultsHighlights: 9M FY05/06 Group Results

9M underlying performance*9M underlying performance* EBITDA

129.6

138.6

9M FY04/05 9M FY05/06

6.9%$M

Operating Revenue

281.5

307.8

9M FY04/05 9M FY05/06

9.4%$M

Net Profit

79.7

86.2

9M FY04/05 9M FY05/06

$M

8.1%

* Excluding exceptional items and depreciation impact from change in assets’ useful lives

5

Highlights: Q3 FY05/06 Segment ResultsHighlights: Q3 FY05/06 Segment Results

Logistics

2.03.0

13.916.0

$M15.3%

49.8%

Q3 FY04/05

Q3 FY05/06

Q3 FY04/05

Q3 FY05/06

Mail

29.4

79.2 81.8

33.0

3.4%

12.3%

Q3 FY04/05

Q3 FY05/06

Q3 FY04/05

Q3 FY05/06

$M

Retail

2.1 2.7

11.913.2

$M10.8%

27.4%

Q3 FY04/05

Q3 FY05/06

Q3 FY04/05

Q3 FY05/06

Operating RevenueOperating Profit

6

Business Highlights Business Highlights –– Q3 InitiativesQ3 Initiatives

♦ Enhanced service offerings on vPOST- vSHOP, an online shopping mall- vConcierge, shopping on behalf of

customers♦ Delivery/shipping service to customers

Soft launched December 05

SingPost Mall – vSHOP, vConcierge

November –December 05

Soft launched December 05

Launch date / Promotion period

♦ Retail product promotions during festive season

♦ Matching set of Christmas cards and stamps

♦ Christmas decoration for centrally located Kiliney Road post office to draw crowds

♦ New express courier service offering♦ International delivery by DHL

Christmas offerings –shopping catalogue, Kiliney Road Post Office decoration, SingPost Christmas cards

Speedpost Express

Initiatives

7

Q3 FY05/06 Financial ResultsQ3 FY05/06 Financial Results

8

Quarterly Performance Overview Quarterly Performance Overview

Quarterly Operating Revenue

♦ Firm growth in operating revenue sustained

♦ Strong underlying net profit growth, underpinned by improved business performance and operating leverage

Q1 Q2 Q3 Q4FY03/04 FY04/05 FY05/06

8.2%

2.6% 3.2% 2.0%0.5%

7.4%12.6%$M

Quarterly EBITDA* Quarterly Net Profit*

Q1 Q2 Q3 Q4

FY03/04 FY04/05 FY05/06

Q1 Q2 Q3 Q4

FY03/04 FY04/05 FY05/06

5.2%

10.0%9.0%

$M

6.5% 1.3% 7.8%10.0%

6.7%

* Excluding exceptional items and depreciation impact from change in assets’ useful lives

$M

7.6%

(0.7)% 6.7%(2.4)% (0.4)%

6.5%

9

Q3 FY05/06 Performance HighlightsQ3 FY05/06 Performance Highlights

♦ Strong business performance and operating leverage

17.4%32,81027,950Net profit *

14.3%40,84335,748Operating profit

4.2%4,5314,349Other operating income

10.0%

6.5%

30,737

48,960

27,950

45,986

Net profit excluding depreciation impact & exceptional items

EBITDA (excluding exceptional items)

7.4%107,980100,510Operating revenue

ChangeQ3 FY05/06Q3 FY04/05(S$’000)

* Profit after tax attributable to equity holders of the Company

10

Q3 FY05/06 Operating ExpensesQ3 FY05/06 Operating Expenses

1.6

8.7 8.9

69.1

8.5

73.7

24.4 25.68.4

2.8

28.425.6

Volume relatedcosts

Labour costs Selling &promotionexpenses

Depreciation* Others Total*

FY04/05 FY05/06

$1.1M4.6%

$2.8M10.9%

$1.3M80.4%

$0.2M2.6%$M

$0.3M3.8%

* Excluding depreciation impact from change in assets’ useful lives

$4.6M6.7%

♦ Costs increased in tandem with business growth

♦ Continued cost discipline kept other costs down

11

Q3 FY05/06 Profit MarginsQ3 FY05/06 Profit Margins

45.7%45.8%46.6% 45.7%45.3%

43.8%46.0%

Q1 Q2 Q3 Q4

EBITDA Margins*

♦ Underlying profit margins remain strong

27.8%28.1%29.1% 28.1%

28.5%28.3%

27.3%

Q1 Q2 Q3 Q4

Net Profit Margins*

34.5%35.0%33.7%

35.6%

35.9%

35.3%33.4%

Q1 Q2 Q3 Q4

Operating Profit Margins*

* Excluding exceptional items and depreciation impact from change in assets’ useful lives

FY04/05 FY05/06

12

99--Month FY05/06 Financial ResultsMonth FY05/06 Financial Results

13

9M FY05/06 Performance Highlights9M FY05/06 Performance Highlights

♦ Good operating performance for first 9 months

10.8%92,42083,413Net profit *

11.9%113,570101,518Operating profit

7.6%13,42712,483Other operating income

8.1%

6.9%

86,202

138,572

79,731

129,633

Net profit excluding depreciation impact & exceptional items

EBITDA (excluding exceptional items)

9.4%307,802281,469Operating revenue

Change9M FY05/069M FY04/05(S$’000)

* Profit after tax attributable to equity holders of the Company

14

9M FY05/06 Operating Expenses

♦ Costs increased in tandem with business growth

$17.8M9.1%

5.5

196.1

25.6

213.9

25.925.565.1

74.1

25.48.3

82.472.2

Volume relatedcosts

Labour costs Selling &promotionexpenses

Depreciation* Others Total*

FY04/05 FY05/06

$7.1M10.9%

$8.2M11.1%

$2.8M50.1%

$M

$0.1M0.5%

$0.2M0.9%

* Excluding depreciation impact from change in assets’ useful lives

15

Segmental Overview

16

Mail – Q3 FY05/06 Overview

♦ Mail revenue up 3.4% despite higher base in previous year due tolarge one-off postings

♦ Strong growth in operating profit and margin

Mail Operating Profit

Mail Operating Profit Margin

Q3 FY04/05 Q3 FY05/06

$2.7M3.4%

Mail Operating Revenue

79.2 81.8$M

Q3 FY04/05 Q3 FY05/06

29.4

33.0$3.6M12.3%

$M

37.1%

40.3%

Q3 FY04/05 Q3 FY05/06

17

Mail – Q3 FY05/06 Revenue Breakdown

3.4%81.879.2Mail

ChangeQ3 FY05/06

Q3 FY04/05(S$M)

♦ One-off postings in previous year

♦ Continued growth in direct mail

♦ Increased mailroom outsourcing activities

3.2

25.7

50.3

3.9

28.0

49.9

Domestic mail International mail Hybrid mail

Q3 FY04/05Q3 FY05/06

$0.3M0.7%

$2.4M9.3%

$0.6M19.5%

$M

♦ Increased volumes from new customers

♦ Higher volumes from new customers

18

Mail – 9M FY05/06 Overview

Quarterly Revenue♦ Firm 7.1% increase in Mail

revenue and double-digit operating profit growth of 14.4%

♦ Growth across business lines – domestic, international & hybrid

Q1 Q2 Q3 Q4FY2003/04 FY2004/05 FY2005/06

8.4%

2.0% 2.9% 1.6%1.4%

10.1%$M 3.4%

9-Month Revenue Breakdown 9-Month Operating Revenue & Profit$M 7.1%

14.4%

81.6

221.5237.3

93.4

Operating Revenue Operating Profit

9M FY04/05

9M FY05/06

9M FY04/05

9M FY05/06

9.5

70.3

141.7

10.7

78.7

147.9

Domestic mail International mail Hybrid mail

9M FY04/059M FY05/06

4.4%

12.0%

12.8%

$M

19

Logistics – Q3 FY05/06 Overview

♦ Continued growth momentum

♦ Double-digit growth in Logistics revenue and operating profit

Q3 FY04/05 Q3 FY05/06

Logistics Operating Revenue

$2.1M+15.3%

16.0

13.9

$M

Q3 FY04/05 Q3 FY05/06

$1.0M+49.8%

Logistics Operating Profit

2.03.0

$M

Q3 FY04/05 Q3 FY05/06

14.4%18.7%

Logistics Operating Profit Margin

20

Logistics – Q3 FY05/06 Revenue Breakdown

15.3%16.013.9Logistics

ChangeQ3 FY05/06

Q3 FY04/05(S$M)

♦ Growth in domestic and worldwide courier services

♦ Fuel & security surcharge implemented in December 2004

12.5

14.0

1.91.3

Speedpost Warehousing, fulfilment &distribution & Others

Q3 FY04/05

Q3 FY05/06

$1.5M12.1%

$0.6M48.4%

$M

♦ New customers acquired

21

Logistics – 9M FY05/06 Overview

Quarterly Revenue♦ Double-digit growth in

operating revenue and profit

♦ Boost from new clients, as well as fuel & security surcharge implemented in Dec 2004

Q1 Q2 Q3 Q4FY2003/04 FY2004/05 FY2005/06

11.4% 20.2%$M 15.3%

4.4% 7.1% 5.8%(1.5%)

9-Month Revenue Breakdown 9-Month Operating Revenue & Profit$M

5.2

38.6

44.7

6.7

Operating Revenue Operating Profit

15.7%

28.8%

9M FY04/05

9M FY05/06

9M FY04/05

9M FY05/06

3.6

34.8

5.7

38.8

Speedpost Warehousing, fulfilment anddistribution & Others

9M FY04/059M FY05/06

11.3%

57.9%

$M

22

Retail – Q3 FY05/06 Overview

♦ Growing contributions from financial services and vPOSTtransactions

♦ Margin improvements following start-up costs and additional expenditure incurred last FY for rollout of financial services

Retail Operating Revenue

Retail Operating Profit

Q3 FY04/05 Q3 FY05/06

20.5%17.8%

Retail Operating Profit Margin

Q3 FY04/05 Q3 FY05/06

13.211.9

$1.3M+10.8%

$M

Q3 FY04/05 Q3 FY05/06

2.7

2.1

$0.6M+27.4%

$M

23

Retail – Q3 FY05/06 Revenue Breakdown

10.8%13.211.9Retail

ChangeQ3 FY05/06

Q3 FY04/05(S$M)

♦ Contributions from financial services

♦ Increasing transactions on vPOST

6.4

5.5

7.9

5.3

Retail Inter-segment

Q3 FY04/05

Q3 FY05/06

$1.6M+24.7%

$M

$0.3M5.2%

24

Retail – 9M FY05/06 Overview

Q1 Q2 Q3 Q4FY2003/04 FY2004/05 FY2005/06

Quarterly Revenue

11.1% 18.5%$M

10.8%

0.1% 0.9% 5.8%(1.1%)

♦ Double-digit growth in Retail operating revenue and profit

♦ Financial services accounted for $3.2m, or 72%, of Retail revenue growth

9-Month Revenue Breakdown 9-Month Operating Revenue & Profit

$M

3.6

32.837.2

5.4

Operating Revenue Operating Profit

13.4%

49.0%

9M FY04/05

9M FY05/06

9M FY04/05

9M FY05/06

15.717.1

15.821.4

Retail Inter-segment

9M FY04/05 9M FY05/0625.4%

0.4%

$M

25

Financial Services Update

Target market:(source: Statistics Dept 2000):♦ Est. 1.5m working population

earning S$1,600 & above per month

New business sales (source: Life Insurance Assoc.):♦ Jan-Sep 05 premiums of

S$4.28bn comprising: - Single premiums: S$3.73bn - Annual premiums: S$546.6m

Target market:♦ Est. 459,000 foreign workers

from targeted regional markets (Philippines, Thailand, India, Sri Lanka, Bangladesh, China, Indonesia)

Pawnbroking statistics (1H2004)(source: Registry of Pawnbrokers):♦ Pawnbroking value: S$0.78bn ♦ No. of transactions: 1.66m♦ Oct 2004: 91 pawnshops

Status:♦Continuing to work with existing partners who

provide reliable payment pipes to variousdestination countries for different delivery modes

♦Working with new partners to enhance remittanceofferings to the public

Status:♦Promotion by active referrals at post offices,

advertisements and Admail to create greater product awareness

♦Rolled out to 17 post offices; target 20 by 31 March 06

Status:♦New white-labelled product in Q4 FY05/06 –

“Medi-Sure Plus”, a medical insurance plan♦Postassurance rolled out to 34 post offices;

target 36 by 31 March 06

Status:♦Marketing via roadshows in communities where

outlets are located, as well as AdMail♦2 new outlets opened in Q3 FY05/06; target 1

more by 31 March 06 for total of 5 outlets

As at 27 January 2006

26

Cash Flow, Dividends

27

Cash Flow, Dividends

♦ Strong cashflow generation

— Net cash flow from operating activities of $43.0 million in Q3 FY05/06

— 9-month net cash flow from operating activities amounted to $104.6 million, compared to $91.4 million previously

♦ Dividends

— Special dividend of 10 cents per share paid on 16 January 2006

— Additional borrowings to fund working capital requirements

— Regular quarterly dividend of 1.25 cents per share to be paid on 28 February 2006

Net Operating Cashflow

112.7 121.7144.4

104.6

FY02/03 FY03/04 FY04/05 9MFY05/06

$M

28

Outlook

29

Outlook

♦ Remain positive on Group’s growth prospects

♦ Positive on outlook of segments in core business – namely direct mail, international mail and Speedpost

♦ Strategy of leveraging network bearing fruit; focused on further rollout of financial services and enhancement of products/services at post offices and vPOST

♦ Expect higher borrowing costs

30

Summary

31

Summary

♦ Sustained robust performance in Q3 FY05/06

— Operating revenue growth of 7.4%

— Underlying net profit growth of 10.0%

♦ Growth across the board

— Strong operating performance across all business units

♦ Dividend payout

— Regular quarterly dividend of 1.25 cent per share

32

Thank You