Singapore Post Ltd. · SGX:S08
Singapore Post — FY2005/06 Earnings Presentation
42 slides from Singapore Post's earnings presentation, Apr 27, 2006
Slide 1: SGX Miscellaneous Announcement: Presentation Slides
MISCELLANEOUS Page 1 of 1 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 SINGAPORE POST LIMITED respect to
Slide 2: Q4 & Full-Year FY2005/06 Results
Singapore Post Limited Q4 & Full-Year FY2005/06 Results Financial Year ended 31 March 2006 27 April 2006
Slide 3: Agenda
Agenda ♦ Strategic Overview ♦ Q4 & Full Year FY2005/06 Results ♦ Segmental Results ♦ Cash Flow, Dividends, Key Financial Indicators ♦ Outlook ♦ Summary The following presentation contains forward looking statements by the management of Singapore Post Limited ("SingPost"), relating to financial trend
Slide 4: Strategic Overview
Sours Aluays Strategic Overview
Slide 5: Strategic Overview
Strategic Overview FY05/06 Controlled, Quality Growth FY04/05 Investing in Growth and Expertise Reinvented and rejuvenated existing businesses FY03/04 Privatisation of Invested for the future – branding, people SingPost Enhanced infrastructure for business growth Focused on operating leverage and co
Slide 6: FY2005/06 – Controlled Quality Growth
Strategic Overview FY2005/06 – Controlled Quality Growth ♦ Record high for revenue ♦ Strong 9.8% revenue growth vs flat performance in the past ♦ Net profit growth of 12.0% vs 4-year CAGR of -0.7% 9.8% Revenue CAGR 0.3% 412.8 371.2 380.9 373.0 368.2 375.8 $M Net Profit CAGR -0.7% 12.0% 123.3 113.2 1
Slide 7: Business Highlights (FY2005/06)
Strategic Overview Business Highlights (FY2005/06) Customer acquisitions ♦Mailroom management, courier/delivery contracts (e.g. Yellow Pages), etc Launch/Recast of ♦MyStamp, Friday Mailbox Surprise!, SAMPLUS, Speedpost products and services Express, Shop@USA and vConcierge Retail product ♦Harry Pott
Slide 8: FY06/07 Execution Excellence
Strategic Overview FY06/07 Execution Excellence FY05/06 Controlled, Quality Growth FY04/05 Investing in Growth and Expertise FY03/04 Privatisation of SingPost 6
Slide 9: FY2006/07 – Execution Excellence
Strategic Overview FY2006/07 – Execution Excellence ♦ Drive growth with execution of strategies and plans — Continue to pursue and implement initiatives to grow core business of Mail and Logistics — Focused on further rollout of financial services and enhancement of products/services offered through
Slide 10: Q4 FY2005/06 Results
Yours Aluays Q4 FY2005/06 Results
Slide 11: Q4 FY05/06 Group Results
Q4 FY05/06 Group Results ♦ Growth momentum Revenue maintained in Q4 $M 7.4% 11.3% 12.6% 108.0 ♦ Strong underlying results 8.2% 103.0 105.0 100.5 underpinned by improved 96.8 94.3 business performance 91.5 89.4 FY04/05 FY05/06 Q1 Q2 Q3 Q4 Underlying EBITDA* Underlying Net Profit* $M $M 6.5% 8.3% 10.0
Slide 12: Q4 FY05/06 Segment Results
Q4 FY05/06 Segment Results Mail Revenue and Profit ♦ All business segments $M 9.1% continued to record strong revenue growth 82.0 75.2 ♦ Mail and Logistics profit 18.3% growth remains strong; Retail profit growth impacted 32.7 27.7 by pricing pressure in agency/ bill presentment services Q4 Q4 FY04/
Slide 13: Q4 FY05/06 Profit & Loss
Q4 FY05/06 Profit & Loss ♦ Strong set of results achieved for Q4 FY05/06 ($M) Q4 FY04/05 Q4 FY05/06 % Change Revenue 94.3 105.0 11.3% Other gains (net) 5.6 5.5 (1.9%) Total expenses (68.4) (74.4) 8.8% Share of assoc & JVs 2.0 2.5 27.7% Profit before income tax 33.6 38.7 15.1% Income tax expense (6.8
Slide 14: Q4 FY05/06 Total Expenses
Q4 FY05/06 Total Expenses ♦ Increase in labour and related costs and volume-related costs in line with business growth ♦ Increase in finance expenses due to higher interest rate environ- ment and borrowings of $60M for general operational purposes $3.5M Q4 Q4 13.3% ($M) Change FY04/05 FY05/06 29.7 $
Slide 15: Full Year FY2005/06 Results
Full Year FY2005/06 Results 13
Slide 16: Full Year FY05/06 Group Results
Full Year FY05/06 Group Results ♦ Strong revenue growth of 9.8% Revenue recorded for FY05/06, compared $M 9.8% 412.8 to flat performance in the past 368.2 375.8 ♦ Good underlying EBITDA and net profit growth, on the back of improved business performance and operating leverage FY03/04 FY04/05 FY05/06
Slide 17: Full Year FY05/06 Segment Results
Full Year FY05/06 Segment Results Mail Revenue and Profit ♦ Good full-year results $M 7.6% achieved by all business segments 301.4 324.2 ♦ Strong revenue and profit 16.1% growth across the board 128.7 110.8 FY04/05 FY05/06 FY04/05 FY05/06 Logistics Revenue and Profit Retail Revenue and Profit $M $M
Slide 18: Full Year FY05/06 Profit & Loss
Full Year FY05/06 Profit & Loss ♦ Good set of results recorded for FY05/06 ($M) FY04/05 FY05/06 % Change Revenue 375.8 412.8 9.8% Other gains 22.7 22.8 0.6% Total expenses (268.4) (289.8) 8.0% Share of assoc & JVs 8.2 8.3 1.3% Profit before income tax 138.3 154.2 11.5% Income tax expense (27.9) (30.
Slide 19: Full Year FY05/06 Total Expenses
Full Year FY05/06 Total Expenses ♦ Higher labour and related costs and volume-related costs in line with strong business growth ♦ Increase in Administrative and Others capped at 4.0% $11.6M 11.6% ($M) FY04/05 FY05/06 Change $10.9M 112.2 12.7% Total expenses 268.4 289.8 +8.0% 100.5 97.1 86.2 $1.4M 4.
Slide 20: FY05/06 Profit Margins
FY05/06 Profit Margins Underlying Operating Profit Margins* ♦ Underlying profit margins held firm as the Group grows its 35.3% 33.4% 35.9% 34.5% 34.8% revenue 35.0% 33.7% 35.6% 34.5% 34.7% — Operating profit margin for Q4 maintained at 34.5% — Full year operating profit margin slightly better at 34.
Slide 21: Segmental Results
Segmental Results (Q4 & Full Year FY2005/06) Mail Logistics Retail 19
Slide 22: Mail – Q4 FY05/06 Performance
Mail – Q4 FY05/06 Performance ♦ Mail Q4 FY05/06 revenue ↑ 9.1% or $6.8M against last year, supported by strong performances of all business lines ♦ Strong improvements in operating profit and margin due to good operating leverage and lower depreciation charges Mail Revenue Mail Operating Profit Mail
Slide 23: Mail – Q4 FY05/06 Revenue Breakdown
Mail – Q4 FY05/06 Revenue Breakdown ♦ Strong growth in direct mail Q4 Q4 ($M) Change ♦ Increased mailroom FY04/05 FY05/06 management activities Mail Revenue 75.2 82.0 +9.1% ♦ Boost from one-off government postings $4.1M 8.9% ♦ Higher volumes by customers, particularly 50.3 large publishers 46.2 $1.8
Slide 24: Mail – Full Year FY05/06 Performance
Mail – Full Year FY05/06 Performance ♦ Good growth momentum recorded Mail Quarterly Revenue for all 4 quarters $M 9.8% 3.6% 9.1% 8.2% ♦ Full year Mail revenue ↑ 7.6% or $22.8M, underpinned by strong performance by all business lines ♦ Mail profit ↑ 16.1% or $17.8M on good operating leverage Q1 Q2 Q3
Slide 25: Mail – Full Year FY05/06 Revenue Breakdown
Mail – Full Year FY05/06 Revenue Breakdown ♦ Initiatives implemented ($M) FY04/05 FY05/06 Change to grow direct mail and mailroom management Mail Revenue 301.4 324.2 +7.6% activities $10.3M 5.5% ♦ Focused on increasing volumes from customers, 198.0 particularly publishers 187.7 $10.2M ♦ Higher volum
Slide 26: Logistics – Q4 FY05/06 Performance
Logistics – Q4 FY05/06 Performance ♦ Logistics revenue ↑ 11.9% or $1.6M on improved performances by Speedpost, Warehousing, Fulfillment and Distribution ♦ Logistics profit ↑ 38.7% or $0.7M, resulting in better profit margin of 17.1% Logistics Logistics Revenue Logistics Operating Profit Operating Pr
Slide 27: Logistics – Q4 FY05/06 Revenue Breakdown
Logistics – Q4 FY05/06 Revenue Breakdown ♦ Continued growth in domestic Q4 Q4 ($M) Change and worldwide courier services FY04/05 FY05/06 ♦ Launched Speedpost Express, Logistics Revenue 13.2 14.8 +11.9% a premium express courier service $1.0M 8.6% 12.7 11.7 ♦ Benefited from new customers acquired $M
Slide 28: Logistics – Full Year FY05/06 Performance
Logistics – Full Year FY05/06 Performance ♦ Good growth momentum through Logistics Quarterly Revenue all 4 quarters $M 15.3% 20.2% 11.9% 11.4% ♦ Double-digit revenue and profit growth achieved for the full year ♦ Strong results from all business lines Q1 Q2 Q3 Q4 Logistics Revenue Logistics Operatin
Slide 29: Logistics – Full Year FY05/06 Revenue Breakdown
Logistics – Full Year FY05/06 Revenue Breakdown ♦ Implemented initiatives to ($M) FY04/05 FY05/06 Change enhance connectivity for worldwide courier business Logistics Revenue 51.9 59.5 +14.7% ♦ Fuel & security surcharge implemented in December 2004 $5.0M 10.7% ♦ New customers acquired 51.5 46.6 ♦ In
Slide 30: Retail – Q4 FY05/06 Performance
Retail – Q4 FY05/06 Performance ♦ Retail revenue ↑ 18.0% or $2.1M, as growing contributions from financial services, higher retail product revenue and vPOST mail-order transactions offset the decline in contributions from agency services ♦ Decline in Retail profit margin from 12.3% to 11.1% due to i
Slide 31: Retail – Q4 FY05/06 Revenue Breakdown
Retail – Q4 FY05/06 Revenue Breakdown Q4 Q4 ($M) Change FY04/05 FY05/06 ♦ Increased contributions from Retail Revenue 11.6 13.6 +18.0% Retail products and vPOST mail-order transactions offset decline in agency/bill presentment revenue $0.5M $0.2M ♦ Growing contributions 4.2% 10.2% by financial servi
Slide 32: Retail – Full Year FY05/06 Performance
Retail – Full Year FY05/06 Performance ♦ Strategy of leveraging retail Retail Quarterly Revenue network to offer more value added $M 18.0% products and services bearing fruit 11.1% 18.5% 10.8% ♦ Strong revenue growth achieved for the full year ♦ Financial services accounted for 83% of Retail revenue
Slide 33: Retail – Full Year FY05/06 Revenue Breakdown
Retail – Full Year FY05/06 Revenue Breakdown ($M) FY04/05 FY05/06 Change ♦ Growth in Retail products and vPOST mail-order Retail Revenue 44.3 50.8 +14.6% transactions offset decline in agency/bill presentment contributions $1.2M 6.0% $0.2M ♦ Rolled out financial 0.8% 21.9 services to more post 20.6
Slide 34: Retail – Financial Services Update
Retail – Financial Services Update ♦ More financial services introduced at post offices; will continue to roll out offerings to more post offices ♦ Focused on enhancing and growing contributions from products/services launched Financial Services Unsecured Secured Personal PostAssurance Remittances P
Slide 35: Cash Flow, Dividends, Key Financial Indicators
Cash Flow, Dividends, Key Financial Indicators 33
Slide 36: Cash Flow, Dividends
Cash Flow, Dividends ♦ Robust cashflow generation Net Operating Cashflow — Net cash inflow from operating $M 144.4 149.7 activities amounted to $149.7M, 121.7 112.7 compared to $144.4M in FY04/05 — Free cash flow amounted to $139.4M, compared to $130.7M in FY04/05 ♦ Dividends FY02/03 FY03/04 FY04/05
Slide 37: Key Financial Indicators
Key Financial Indicators Return on Average Equity (ROAE) ♦ Improvements in ROAE and ROIC with optimisation of 51.7% capital structure 33.7% 34.9% ♦ Net debt to equity ratio at 2.0x 23.6% post special dividend; strong EBITDA interest coverage of 21.3x FY02/03 FY03/04 FY04/05 FY05/06 Net Debt to Equit
Slide 38: Outlook
Outlook Sours Aluays 36
Slide 39: Outlook
Outlook ♦ Positive economic outlook by Ministry of Trade & Industry ♦ Good prospects in segments of core business — Positive on prospects of direct mail, international mail, Speedpost ♦ Positive on prospects of financial services; but unsecured personal finance business could face potential changes
Slide 40: Summary
Summary Sours Aluays 38
Slide 41: Summary
Summary ♦ Robust performance in Q4 and full year FY05/06 — Q4 FY2005/06 Revenue ↑ 11.3%, Underlying Net Profit ↑ 9.0% — Full Year Revenue ↑ 9.8%, Underlying Net Profit ↑ 8.3% ♦ Growth across the board — Strong operating performance across all business segments ♦ Total dividend increased by 10% to 5.
Slide 42: Thank You
Thank You Sours Aluays 40