Singapore Post Ltd. · SGX:S08
Singapore Post — FY2016/17 Earnings Presentation
20 slides from Singapore Post's earnings presentation, Jun 22, 2017
Slide 1: SingPost-SIAS Dialogue Session
SingPost-SIAS Dialogue Session 22 June 2017
Slide 2: Agenda
Agenda FY2016/17 Financials Cash flow and Balance sheet TradeGlobal Business & Corporate updates Summary & Outlook Supplementary information The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future
Slide 3: FY2016/17 Performance
FY2016/17 Performance FY2016/17 P&L, $M YoY FY16/17 FY15/161 % change Revenue 1,348.5 1,151.5 +17.1% Inclusion of US acquisitions Other income and gains / (losses) Impairment charges mainly for TradeGlobal, partially offset by Rental and property-related income 36.6 39.4 (7.1%) revaluation gain on S
Slide 4: Revenue movement
Revenue movement FY2015/16 vs. FY2016/17 Revenue performance, $M +17.1% 1,348.5 Inclusion of US eCommerce subsidiaries 1,151.5 267.1 +171.4% TradeGlobal and Jagged Peak1 eCommerce 98.4 Driven by higher contribution from Couriers Please Logistics 626.0 636.8 +1.7% from increased eCommerce deliveries
Slide 5: Operating Profit for the Postal, Logistics and eCommerce segments
Operating Profit for the Postal, Logistics and eCommerce segments FY2015/16 vs. FY2016/17 Operating Profit performance, $M Logistics 38.8 Due to costs from planned investments in the 23.6 Logistics network as well as pricing and competitive (39.2%) pressures in the eCommerce Logistics space Postal 1
Slide 6: FY2016/17 Underlying Net Profit movement
FY2016/17 Underlying Net Profit movement Underlying Net Profit performance, $M Investments in transformation Postal 153.6 26.5 9.2 10.2 17.3 115.6 Largely US 2.8 6.6 eCommerce Costs related to Regional Lower business Loss of rental eCommerce contribution Other items from SPC mall Decline in Postal L
Slide 7: Agenda
Agenda FY2016/17 Financials Cash flow and Balance sheet TradeGlobal Business & Corporate updates Summary & Outlook Supplementary information The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future
Slide 8: Cash Flow movement
Cash Flow movement $M, unless otherwise stated FY16/17 FY15/16 Increase in cash & cash equivalents Net cash provided by operating activities 200.1 131.4 due to higher cash provided by operating activities, as well as Cash flow used in investing activities (89.6) (457.1) proceeds received from the sa
Slide 9: Balance Sheet and financial indicators
Balance Sheet and financial indicators $M, unless otherwise stated As at As at Financial indicators Mar 2017 Mar 2016 Includes cash proceeds from Alibaba to be used in accordance with the Cash & cash equivalents at end of financial period 366.6 126.6 investment agreements Borrowings 364.0 280.3 Incr
Slide 10: Agenda
Agenda FY2016/17 Financials Cash flow and Balance sheet TradeGlobal Business & Corporate updates Summary & Outlook Supplementary information The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future
Slide 11: Impairment on TradeGlobal
Impairment on TradeGlobal • SingPost recorded an impairment charge of $185.0 million on the carrying value of its investment in TradeGlobal. • The valuation process involved a review of TradeGlobal’s FY2016/17 performance and a detailed evaluation of the underlying assumptions of future business pla
Slide 12: Independent committee appointed
Independent committee appointed • Following the announcement in the Q3 quarterly results of the risk of significant impairment to TradeGlobal’s carrying value, the Board formed an independent committee to conduct a thorough review of the circumstances surrounding SingPost’s consideration and approva
Slide 13: Agenda
Agenda FY2016/17 Financials Cash flow and Balance sheet TradeGlobal Business & Corporate updates Summary & Outlook Supplementary information The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future
Slide 14: Revised dividend policy to ensure sustainability
Revised dividend policy to ensure sustainability Previous dividend policy Revised dividend policy Underlying cent cent cent net profit for each financial 60% to 80% to be year paid out as dividends cent cent cent cent Absolute amount each financial year Based on 60% to 80% of underlying net profit f
Slide 15: Key developments in FY2016/17
Key developments in FY2016/17 Enhanced capabilities with opening of Strengthening eCommerce Renewal of Postal license Regional eCommerce Logistics Hub Logistics network & partnerships Alibaba Group took a 34% stake in Quantium Solutions International in October 2016, and raised its stake in SingPost
Slide 16: Agenda
Agenda FY2016/17 Financials Cash flow and Balance sheet TradeGlobal Business & Corporate updates Summary & Outlook Supplementary information The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future
Slide 17: Summary & Outlook
Summary & Outlook In FY2016/17, revenue rose with the inclusion of US eCommerce acquisitions. Underlying net profit declined largely due to: • the impact of planned investments in building out our eCommerce Logistics platform such as the Regional eCommerce Logistics Hub and associates which are inve
Slide 18: Agenda
Agenda FY2016/17 Financials Cash flow and Balance sheet TradeGlobal Business & Corporate updates Summary & Outlook Supplementary information The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future
Slide 19: Exceptional items
Exceptional items1 $M FY16/17 Impairment, net of tax (208.6)2 Significantly underperformed the business case TradeGlobal (185.0) which supported the investment Postea3 (20.5) The carrying value of the investment was no longer Toh Guan Road Building (PPE)4 (9.3) supported by the value-in-use as Poste
Slide 20: Thank you
Thank you