Singapore Post Ltd. · SGX:S08
Singapore Post — Q3 FY2018/19 Earnings Presentation
27 slides from Singapore Post's earnings presentation, Feb 1, 2019
Slide 1: Financial results Q3 & 9M FY2018/19
Financial results Q3 & 9M FY2018/19 1 February 2019
Slide 2: Disclaimer
Disclaimer 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 histori
Slide 3: Agenda
• Q3 & 9M FY2018/19 Financials • Cash flow and Balance sheet • Segmental results • Outlook 2
Slide 4: Overview – Q3 FY2018/19
Overview – Q3 FY2018/19 Revenue Profit on operating activities S$441.4 million S$42.2 million +7.6% YoY -8.5% YoY (+9.8% excluding US businesses) Net profit attributable to equity holders Q3 interim dividend S$50.2 million 0.5 cent per share +15.6% YoY same as last year Good revenue growth over the
Slide 5: Q3 FY2018/19 financial statement
Q3 FY2018/19 financial statement YoY S$M Q3 FY17/18 Q3 FY18/19 % change Revenue 410.4 441.4 +7.6% Revenue growth across all business segments Operating expenses (366.2) (398.3) +8.8% Higher contributions from Post & Parcel, Logistics & Property largely Profit on operating activities 46.1 42.2 (8.5%)
Slide 6: Q3 FY2018/19 operating expenses
Q3 FY2018/19 operating expenses YoY S$M Q3 FY17/18 Q3 FY18/19 % change Volume-related (225.7) (258.6) +14.6% Higher volume-related expenses with the increase in volumes handled Labour & related (83.5) (80.9) (3.1%) Productivity and cost management initiatives led to lower contracted labour services
Slide 7: Highlights – Q3 FY2018/19
Highlights – Q3 FY2018/19 Strong volumes in the peak season Average daily parcel sorting Highest volume in a volumes at the Logistics Hub single day 23,900 47,000 parcels +15% year-on-year compared to 33,000 last year New proprietary logistics software Last Mile Platform (LaMP) Exceptional gain on d
Slide 8: Q3 FY18/19 Underlying net profit movement
Q3 FY18/19 Underlying net profit movement S$M Logistics Other Associates Post & Property items2 eCommerce profit1 profit1 & JV Parcel profit1 loss3 2.1 0.7 0.0 0.9 8.9 4.3 35.6 32.9 -7.5% Q3 FY17/18 Q3 FY17/18 Post & Property Logistics Others Associates & eCommerce Q3 Q3 FY18/19 FY18/19 Parcel 1. Pr
Slide 9: Cash flow & Balance sheet
Cash flow & Balance sheet 8
Slide 10: Free cash flow
Free cash flow Negative working capital S$M 9M FY17/18 9M FY18/19 movement this year due to timing of receivables for Operating cash flow before capital charges 152.2 159.0 international eCommerce Changes in working capital 24.7 (27.0) deliveries Income tax paid (30.4) (32.7) Due to negative working
Slide 11: Financial indicators
Financial indicators As at As at S$M Financial indicators Mar 2018 Dec 2018 The Group switched from an Cash & cash equivalents at end of financial period 314.1 345.9 intercompany loan for a foreign subsidiary, to an external loan taken by the foreign subsidiary, Borrowings 244.0 293.2 for better mat
Slide 12: Segmental results
Segmental results 11
Slide 13: Segment revenue and profit on operating activities
Segment revenue and profit on operating activities S$M Profit on operating activities 46.1 42.2 Revenue 410.4 441.4 23.0 4.0% 13.9 18.2% 22.1 Property 11.7 Property 82.5 8.7% eCommerce 75.9 134.0 3.6% Logistics 129.3 Post and Parcel 47.6 10.0% 43.3 Logistics 1.0 1.8 67.4% 213.2 9.0% Post and Parcel
Slide 14: Post and Parcel
Post and Parcel S$M Q3 Q3 YoY % 9M 9M YoY % Post and Parcel FY17/18 FY18/19 change FY17/18 FY18/19 change Revenue 195.6 213.2 +9.0% 545.6 575.9 +5.6% Domestic mail 58.5 59.4 +1.6% 172.6 172.1 (0.3%) SP Parcels 24.7 24.8 +0.3% 67.7 68.1 +0.6% International mail1 105.1 122.2 +16.3% 282.9 315.7 +11.6%
Slide 15: Logistics
Logistics S$M Q3 Q3 YoY % 9M 9M YoY % Logistics FY17/18 FY18/19 change FY17/18 FY18/19 change Revenue 129.3 134.0 +3.6% 377.2 379.4 +0.6% Quantium Solutions 25.6 25.1 (2.0%) 74.5 70.7 (5.1%) Couriers Please 41.3 41.0 (0.7%) 114.5 115.7 +1.0% Famous 62.4 67.9 +8.8% 188.2 193.1 +2.6% Profit on operati
Slide 16: eCommerce
eCommerce S$M Q3 Q3 YoY % 9M 9M YoY % eCommerce FY17/18 FY18/19 change FY17/18 FY18/19 change Revenue 75.9 82.5 +8.7% 188.0 191.9 +2.1% Profit on operating activities (4.5) (13.4) (196.2%) (12.8) (33.9) (166.1%) OP margin (6.0%) (16.2%) (6.8%) (17.7%) Revenue rose 8.7% in Q3, as volumes rose over th
Slide 17: Property
Property S$M Q3 Q3 YoY % 9M 9M YoY % Property FY17/18 FY18/19 change FY17/18 FY18/19 change Revenue 22.1 23.0 +4.0% 57.7 68.1 +17.9% Profit on operating activities 11.7 13.9 +18.2% 28.3 40.4 +42.9% OP margin 53.0% 60.2% 49.0% 59.3% The Property segment comprises commercial property rental and the se
Slide 18: Outlook
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Slide 19: Outlook
Outlook The Post and Parcel business is expected to continue to benefit from the growth in global eCommerce activities. Although domestic letter mail volumes are expected to trend moderately downwards, the Group is integrating its post and parcel last mile delivery capabilities in Singapore to achie
Slide 20: Thank You
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Slide 21: Supplementary information
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Slide 22: 9M FY2018/19 financial statement
9M FY2018/19 financial statement YoY S$M 9M FY17/18 9M FY18/19 % change Revenue 1,131.5 1,182.6 +4.5% Operating expenses (1,022.4) (1,063.7) +4.0% Profit on operating activities 114.8 121.4 +5.7% Share of associated companies & JV 3.1 (7.1) N.M. Exceptional items 5.8 22.9 292.3% Income tax expense (
Slide 23: 9M FY2018/19 operating expenses
9M FY2018/19 operating expenses YoY S$M 9M FY17/18 9M FY18/19 % change Volume-related (605.3) (659.2) +8.9% Labour & related (248.1) (236.0) (4.9%) Admin, selling-related & others (125.3) (125.3) (0.0%) Depreciation & amortisation (43.7) (43.3) (0.9%) Operating expenses (1,022.4) (1,063.7) +4.0% 22
Slide 24: Segment revenue and profit on operating activities
Segment revenue and profit on operating activities S$M Profit on Revenue 1,131.5 1,182.6 operating activities 114.8 121.4 68.1 17.9% Property 57.7 eCommerce 191.9 2.1% 40.4 188.0 42.9% Property 28.3 379.4 0.6% Logistics 377.2 131.5 3.7% Post and Parcel 126.7 575.9 5.6% Post and Parcel 545.6 2.2 N.M.
Slide 25: eCommerce-related revenue
eCommerce-related revenue eCommerce-related as 53.0% 54.4% % of Group revenue S$M Group Revenue 1,131.5 1,182.6 +7.3% 643.7 eCommerce-related 600.0 Non-eCommerce 531.5 538.9 related 9M FY17/18 9M FY18/19 24
Slide 26: 9M FY18/19 Underlying net profit movement
9M FY18/19 Underlying net profit movement S$M Post & Other Associates Property Logistics Parcel profit1 items2 & JV eCommerce profit1 profit1 4.7 3.2 loss3 12.1 10.2 12.6 21.2 90.9 -5.8% 85.7 9M 9MFY17/18 FY17/18 Logistics Property Post & Others Associates & eCommerce 9M 9M FY18/19 FY18/19 1. Profit
Slide 27: Underlying Net Profit Reconciliation Table
Underlying Net Profit Reconciliation Table Q3 Q3 9M 9M S$M FY17/18 FY18/19 FY17/18 FY18/19 Profit attributable to equity holders 43.4 50.2 103.7 94.1 Exceptional items (0.9) (31.8) (5.8) (22.9) Loss / (Gain) on disposal of PPE (3.0) 0.2 (2.9) 0.2 Professional fees 0.0 0.6 1.5 0.8 Fair value loss / (