Singapore Post Ltd. · SGX:S08
Singapore Post — Q2 FY2004/05 Earnings Presentation
21 slides from Singapore Post's earnings presentation, Nov 2, 2004
Slide 1: Singapore Post Limited FY 2004/05 Q2 & Half-Year Results
Singapore Post Limited FY 2004/05 Q2 & Half-Year Results 2 November 2004
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 histor
Slide 3: Overview & Outlook
Overview & Outlook William Tan Soo Hock Chief Executive Officer 2
Slide 4: Performance Highlights
Performance Highlights Stable performance by core businesses Higher operating expenses on diversification rollout Net profit up 16.4% to S$55.7 million in first-half Higher interim dividend payout; revised dividend policy 3
Slide 5: Financial Highlights
Financial Highlights Profit & Loss Highlights First-Half First-Half Year-end 31 March (S$ million) Change FY 2004/05 FY 2003/04 Operating Revenue 181.0 178.2 1.5% Other Operating Income 8.1 8.7 6.5% Operating Expenses (126.8) (123.2) 2.9% Exceptional Item 3.7 - N.M. Operating Profit 66.0 63.7 3.6% S
Slide 6: Dividends
Dividends REVISED DIVIDEND POLICY Annual payout of 80-90% of net profit or 4.2 cents per share (S$80 million), whichever is higher HIGHER INTERIM DIVIDEND - 10% increase in FY 2004/05 interim dividend - Payout of 2.3 cents per share on 30 Nov 2004 5
Slide 7: Outlook
Outlook CORE BUSINESS Performance to remain stable DIVERSIFICATION DRIVE - Prudent pursuit of diversification - More services to be launched 6
Slide 8: Update – Spring JV Restructuring
Update – Spring JV Restructuring Reduction in SingPost’s agency service fees … … lowers outsourcing costs payable to Spring by S$7.7m p.a. Savings partly offset by lower profit contributions from Spring … … giving net benefit of S$3 million p.a. FY2004/05 net profit reduced by S$2.5-3.0m … …better t
Slide 9: Update – Terminal Dues
Update – Terminal Dues Risk of reclassification to IC removed As NCC, continue to enjoy same worldwide standard rate as DCs Rate increases by 8.75% wef 1 Jan 2006; revised rate to hold for 4 years till Dec 2009 Applicable for all NCC and DC; hence no impact on relative competitiveness Impact of high
Slide 10: Financial Results Presentation
Financial Results Presentation Celine Wang (Ms) Chief Financial Officer 9
Slide 11: Financial Summary
Financial Summary Year-end 31 March Q2 Q2 Change (S$ million) FY 2003/04 FY 2004/05 1) Higher traffic & related Operating Revenue 89.2 91.5 2.6% expenses in tandem with higher int’l mail traffic Other Operating Income 4.4 4.3 2.4% 2) Start-up & additional costs for development & Operating Expenses (
Slide 12: Segmental Operating Revenue – Mail
Segmental Operating Revenue – Mail Mail Revenue Breakdown $70.0m $71.3m S$m 50 $45.9m $45.7m 40 30 $20.7m $22.5m Domestic Mail International Mail 20 Hybrid Mail 10 $3.3m $3.2m 0 Q2 FY 2003/04 Q2 FY 2004/05 11
Slide 13: Domestic Mail Traffic
Domestic Mail Traffic Domestic Mail Volume Q2 Q2 (Million of items) Change FY 2003/04 FY 2004/05 Total Domestic Mail Volume 182.5 180.2 1.3% ♦ Public Mail (stamped & franked) 43.5 38.6 11.1% ♦ Bulk Mail: - 139.0 141.5 1.8% - Government & Business Mail 51.7 51.2 1.0% - Publications & Direct Mail 87.3
Slide 14: Segmental Operating Revenue – Logistics
Segmental Operating Revenue – Logistics Logistics Revenue Breakdown S$m $12.1m $12.6m 15 $10.9m $11.5m 10 Speedpost 5 Warehousing, Fulfilment & Distribution $1.1m $1.1m 0 Q2 FY2003/04 Q2 FY2004/05 13
Slide 15: Segmental Operating Revenue – Retail
Segmental Operating Revenue – Retail Retail Revenue Breakdown S$m $10.6m $10.6m 8 $5.5m $5.5m $5.1m $5.1m 4 Agency Services Inter-segment revenue 0 Q2 FY2003/04 Q2 FY2004/05 14
Slide 16: Group Operating Expenses
Group Operating Expenses Group Operating Expenses Breakdown Q2 Q2 ($ million) Change FY 2003/04 FY 2004/05 Start-up & additional costs for development Staff Costs 18.4 19.2 4.4% & rollout of financial services Depreciation 8.5 8.5 0.7% Traffic & Related Expenses 18.1 19.8 9.8% In tandem with higher
Slide 17: Profit Margins
Profit Margins Segmental Operating Profit Margins 40% Mail 36.1% 36.5% 36.7% 30% 20% 15.4% 16.4% Logistics 10% 12.9% 12.2% 11.7% Retail 7.0% 0% FY 2002/03 FY2003/04 H1 FY2004/05 16
Slide 18: Profit Margins
Profit Margins Operating and Net Profit Margins 40% Operating profit margin (incl. Other 34.3% 34.9% Operating Income) 35% 33.5% 30.8% Net profit margin 30% 29.1% 28.3% 25% FY 2002/03 FY 2003/04 H1 FY 2004/05 17
Slide 19: Capital Expenditure
Capital Expenditure S$m $9.9m 10 $5.3m 5 0 H1 FY2003/04 H1 FY2004/05 18
Slide 20: Consolidated Cash Flow
Consolidated Cash Flow H1 H1 ($ million) FY2003/04 FY2004/05 Operating Cash Flow before Working 80.5 79.0 Capital Changes Working capital Net Cash Inflow from Operating Activities 52.1 46.9 changes and timing of tax payments Net Cash Inflow from Investing Activities 3.5 3.3 Net Cash Outflow from Fin
Slide 21: Question & Answer Session
Question & Answer Session ge We make it our business to deliver