Singapore Post Ltd. · SGX:S08
Singapore Post — Q3 FY2006/07 Earnings Presentation
36 slides from Singapore Post's earnings presentation, Jan 30, 2007
Slide 1: SGX Miscellaneous Announcement
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: Results Presentation Q3 & 9M FY2006/07 Results
Singapore Post Limited Results Presentation Q3 & 9M FY2006/07 Results 30 January 2007
Slide 3: Agenda
Agenda ♦ Strategic Overview ♦ Q3 FY2006/07 Results ♦ 9M FY2006/07 Results ♦ Segment Results ♦ Cashflow, Dividends ♦ Summary 1
Slide 4: Strategic Overview
Yours Aluays Strategic Overview
Slide 5: Strategic Overview: Execution Excellence
Strategic Overview Execution Excellence ♦ Well positioned to compete in liberalised basic mail services market ♦ Continue to execute on strategies, following success in growing traditional business and diversifying — Implementing initiatives to enhance core business of Mail and Logistics — Further l
Slide 6: Strategic Overview: Regional Expansion
Strategic Overview ♦ Extending core competencies and existing businesses into the region ♦ Continue to explore opportunities for regional expansion Regional Expansion Initiatives Pos Indonesia ♦ To work together on 4 initiatives – channelling services, collaboration remittances, logistics and direct
Slide 7: Q3 FY2006/07 Results
Yours Aluays Q3 FY2006/07 Results
Slide 8: Q3 FY06/07 Group Results
Q3 FY06/07 Group Results ♦ Revenue grew 3.5% as all Revenue business segments showed $M 3.5% improvements in performance 108.0 111.8 ♦ EBITDA rose a slower 3.6%, due to lower contributions by associate and JV companies ♦ Net profit recorded 4.0% growth Q3 FY05/06 Q3 FY06/07 EBITDA Net Profit $M $M 3
Slide 9: Quarterly Trends
Quarterly Trends Revenue Growth Trend ♦ Slower EBITDA growth in Q3 3.5% $M FY06/07 due to lower 8.2% 12.6% 7.4% 11.3% 8.5% 3.5% 111.8 contributions by associate and 103.0 108.0 105.0 105.1 106.7 108.0 joint venture companies 96.8 100.5 96.8 103.0 91.5 94.3 89.4 ♦ Lower net profit growth in FY06/07 d
Slide 10: Q3 FY06/07 Segment Results
Q3 FY06/07 Segment Results Mail Revenue and Profit ♦ Improvements in performance $M achieved by all business 3.5% segments 83.1 86.0 3.4% 33.3 34.4 Q3 Q3 Q3 Q3 FY05/06 FY06/07 FY05/06 FY06/07 Logistics Revenue and Profit Retail Revenue and Profit $M $M Segment 3.0% 12.2% Revenue Segment 16.4 16.9 Op
Slide 11: Q3 FY06/07 Profit & Loss
Q3 FY06/07 Profit & Loss ♦ Operating performance remained firm ($M)% Q3 FY05/06 Q3 FY06/07 B/(W) Revenue 108.0 111.8 3.5% Other income 5.4 5.6 3.7% Operating expenses (72.5) (74.1) (2.1%) Operating profit 40.8 43.3 6.0% Share of assoc & JVs 1.7 1.0 (40.7%) Net finance costs (1.2) (2.4) (93.6%) Profi
Slide 12: Q3 FY06/07 Operating Expenses
Q3 FY06/07 Operating Expenses ♦ Operating expenses remained Q3 Q3 ($M) Change under control FY05/06 FY06/07 ♦ Volume related costs rose in Operating expenses 72.5 74.1 +2.1% tandem with increased business activities; but other costs capped $0.5M 1.6% $2.0M 8.0% $0.04M 28.4 27.9 27.6 0.2% 25.6 $M 18.
Slide 13: Quarterly Profit Margins
Quarterly Profit Margins ♦ Q3 FY06/07 profit margins Underlying Operating Profit Margins showed improvements — Operating profit margin rose from 38.7% 37.8% to 38.7% 37.4% 37.8% 37.5% 37.1% 35.4% 36.4% — EBITDA margin increased slightly from 45.3% to 45.4% — Net profit margin higher at 30.5% vs 30.4
Slide 14: 9M FY2006/07 Results
9M FY2006/07 Results Yours Aluays 12
Slide 15: 9M FY06/07 Group Results
9M FY06/07 Group Results ♦ Revenue growth of 5.1% on good Revenue performances by all business $M 5.1% segments 307.8 323.4 ♦ Underlying net profit growth of 3.7% for 9M FY06/07 9M FY05/06 9M FY06/07 Underlying EBITDA Underlying Net Profit $M $M 5.1% 92.4 3.7% 95.9 145.7 138.6 9M FY05/06 9M FY06/07
Slide 16: 9M FY06/07 Segment Results
9M FY06/07 Segment Results Mail Revenue and Profit ♦ All business segments $M achieved improved results in 3.5% 9M FY06/07 242.1 250.6 3.8% 95.4 99.0 9M 9M 9M 9M FY05/06 FY06/07 FY05/06 FY06/07 Logistics Revenue and Profit Retail Revenue and Profit $M $M Segment 5.9% 13.4% Revenue Segment Operating
Slide 17: 9M FY06/07 Profit & Loss Highlights
9M FY06/07 Profit & Loss Highlights ♦ Steady underlying performance ($M) 9M FY05/06 9M FY06/07 B/(W) Revenue 307.8 323.4 5.1% Other income 15.0 21.0 40.5% Operating expenses (209.2) (217.4) (3.9%) Operating profit 113.6 127.0 11.8% Share of assoc & JVs 5.8 4.8 (17.5%) Net finance costs (3.8) (7.2) (
Slide 18: 9M FY06/07 Operating Expenses
9M FY06/07 Operating Expenses ♦ Costs remained under control 9M 9M ($M) Change FY05/06 FY06/07 ♦ Total operating expenses Operating expenses 209.2 217.4 +3.9% increased 3.9% $2.2M $6.0M 2.6% 8.3% 84.6 $0.1M 82.5 78.2 0.2% 72.2 54.5 54.6 $M 9M FY05/06 9M FY06/07 Labour and related Volume related cost
Slide 19: Segment Results
Segment Results Yours Aluays 17
Slide 20: Mail – Q3 FY06/07 Performance
Mail – Q3 FY06/07 Performance ♦ Mail revenue ↑ 3.5% or $2.9M against last year with better performances by all business lines ♦ Mail profit ↑ 3.4% or $1.1M against last year ♦ Mail profit margin slightly lower at 40.0% compared to 40.1% previously Mail Mail Revenue Mail Operating Profit Operating Pr
Slide 21: Mail – Q3 FY06/07 Revenue Breakdown
Mail – Q3 FY06/07 Revenue Breakdown Q3 Q3 ($M) Change FY05/06 FY06/07 Growth in direct Mail Revenue 83.1 86.0 +3.5% mail volumes offset continued decline in public Increase in mail volumes outgoing mail offset continued $1.8M decline in 3.7% incoming mail Higher volumes Growth in MyStamp 51.6 $0.5M
Slide 22: Mail – 9M FY06/07 Performance
Mail – 9M FY06/07 Performance ♦ Mail revenue ↑ 3.5% or $8.4M against last year ♦ Mail profit ↑ 3.8% or $3.6M against last year ♦ Slight improvement in mail profit margin from 39.4% to 39.5% Mail Mail Revenue Mail Operating Profit Operating Profit Margin $M $M 250.6 242.1 $8.4M $3.6M 39.4% 39.5% 95.4
Slide 23: Mail – 9M FY06/07 Revenue Breakdown
Mail – 9M FY06/07 Revenue Breakdown 9M 9M ($M) Change FY05/06 FY06/07 Mail Revenue 242.1 250.6 +3.5% Direct mail push offset continued decline in public Continued efforts mail volumes to grow outgoing mail to offset incoming mail $3.5M decline 2.3% Higher volumes 151.1 from new $3.4M 147.7 4.3% cust
Slide 24: Logistics – Q3 FY06/07 Performance
Logistics – Q3 FY06/07 Performance ♦ Logistics revenue ↑ 3.0% or $0.5M against last year, due to cessation of contracts that were not feasible with increased operating costs ♦ Logistics profit ↑ 9.0% or $0.3M against last year ♦ Logistics profit margin improved from 17.9% to 18.9% Logistics Logistic
Slide 25: Logistics – Q3 FY06/07 Revenue Breakdown
Logistics – Q3 FY06/07 Revenue Breakdown Q3 Q3 ($M) Change FY05/06 FY06/07 Logistics Revenue 16.4 16.9 +3.0% Higher Speedpost volumes $0.3M 1.8% 14.5 14.7 Cessation of contracts not feasible with higher operating costs $0.2M 10.0% $M Q3 FY05/06 Q3 FY06/07 1.5 1.4 Speedpost Warehousing, Fulfillment &
Slide 26: Logistics – 9M FY06/07 Performance
Logistics – 9M FY06/07 Performance ♦ Logistics revenue ↑ 5.9% or $2.7M ♦ Logistics profit ↑ 13.7% or $0.9M against last year ♦ Profit margin improved from 14.3% to 15.4% Logistics Logistics Revenue Logistics Operating Profit Operating Profit Margin $M $M $2.7M $0.9M 45.6 +5.9% 48.3 +13.7% 15.4% 14.3
Slide 27: Logistics – 9M FY06/07 Revenue Breakdown
Logistics – 9M FY06/07 Revenue Breakdown 9M 9M ($M) Change FY05/06 FY06/07 Logistics Revenue 45.6 48.3 +5.9% Higher Speedpost revenue contributions $1.6M 4.1% 40.2 41.8 $0.1M 2.0% $M 9M FY05/06 4.2 4.3 9M FY06/07 Speedpost Warehousing, Fulfillment & Distribution 25
Slide 28: Retail – Q3 FY06/07 Performance
Retail – Q3 FY06/07 Performance ♦ Retail revenue ↑ 12.2% or $1.6M against last year as higher contributions from financial services offset pricing pressure in bill presentment and agency services ♦ Retail profit ↑ 25.3% or $0.6M against last year ♦ Retail profit margin continued to improve Retail Re
Slide 29: Retail – Q3 FY06/07 Revenue Breakdown
Retail – Q3 FY06/07 Revenue Breakdown Q3 Q3 ($M) Change FY05/06 FY06/07 Higher contributions from Retail Revenue 12.9 14.5 +12.2% Retail products partly offset decline in agency and bill presentment services $0.3M Continued growth $0.02M 4.9% in financial services 0.4% $1.8M 74.5% 5.3 5.3 4.9 5.2 4.
Slide 30: Retail – 9M FY06/07 Performance
Retail – 9M FY06/07 Performance ♦ Retail revenue ↑ 13.4% or $4.9M ♦ Retail profit ↑ 45.7% or $2.2M ♦ Retail profit margin improved from 13.2% to 16.9% Retail Retail Revenue Retail Operating Profit Operating Profit Margin $M 41.2 $M 36.3 $4.9M $2.2M +13.4% +45.7% 16.9% 7.0 13.2% 4.8 9M FY05/06 9M FY0
Slide 31: Retail – 9M FY06/07 Revenue Breakdown
Retail – 9M FY06/07 Revenue Breakdown 9M 9M ($M) Change FY05/06 FY06/07 Growth in Retail products partly offset decline in Retail Revenue 36.3 41.2 +13.4% agency and bill presentment services $0.06M $0.5M Increasing contributions 0.4% 3.5% from financial services 15.8 15.8 14.7 $5.4M 15.2 100.8% 10.
Slide 32: Cashflow, Dividends
Cashflow, Dividends Yours Aluays 30
Slide 33: Cash Flow, Dividends
Cash Flow, Dividends ♦ Robust cashflow generation Net Operating Cashflow — For 9M FY06/07, net cash inflow from $M 144.4 149.7 operating activities amounted to 121.7 122.6 $122.6M, compared to $104.6M previously — Outstanding term loan at $30M following repayment of $10M in Q3 FY06/07 FY03/04 FY04/0
Slide 34: Summary
Summary Sours Aluays 32
Slide 35: Summary
Summary ♦ Continued focus on execution excellence ♦ Sustained improvements in Q3 FY06/07 — Revenue grew 3.5%, with good performances by all business segments — Net profit up 4.0% ♦ 9M FY06/07 results — Revenue rose 5.1%, underpinned by improvements in all business segments — Net profit grew 9.5%; ex
Slide 36: Thank You
Thank You Sours Aluays 34