Singapore Post Ltd. · SGX:S08
Singapore Post — H1 FY2021/22 Earnings Presentation
36 slides from Singapore Post's earnings presentation, Nov 3, 2021
Slide 1: Financial results H1 FY2021/22
Financial results H1 FY2021/22 3 November 2021
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: H1 FY2021/22 Financials
H1 FY2021/22 Financials Cashflow and Financial Indicators Business Update Segment Results Outlook and Dividends
Slide 4: Improved performance despite absence of government grants
Improved performance despite absence of government grants Group P&L, S$M H1 FY20/21 H1 FY21/22 % change Led by growth in the Domestic Revenue 707.8 731.4 3.3% Post & Parcel, Logistics and Property segments, supported Operating expenses (670.4) (682.6) 1.8% by strong eCommerce logistics volume growth
Slide 5: Higher operating expenses driven by volume growth
Higher operating expenses driven by volume growth Group Expenses, S$M H1 FY20/21 H1 FY21/22 % change Driven by higher freight forwarding and eCommerce logistics volumes Volume-related (429.2) (439.4) 2.4% Labour & related (149.9) (150.8) 0.6% Mainly due to higher labour costs in Australia in line wi
Slide 6: Revenue and Operating Profit breakdown by segment
Revenue and Operating Profit breakdown by segment S$M Revenue Operating Profit 731.4 707.8 Property 55.4 59.8 51.1 39.8 Logistics 292.7 379.5 26.6 Property 23.5 Logistics 5.7 16.2 Post & Parcel 394.8 Post & Parcel 23.9 325.5 11.3 (3.1) 1 Others (13.2) Inter-segment elim (35.1) (33.4) H1 FY20/21 H1 F
Slide 7: Segment Operating Profit performance
Segment Operating Profit performance H1 FY20/21 Operating Profit H1 FY21/22 Operating Profit Post & Parcel Logistics Property Others1 S$M -52.6% +184.4% +13.5% +76.8% 23.9 26.6 23.5 16.2 (13.2) (3.1) 11.3 5.7 Mainly due to the absence Driven by strong growth in Mainly due to lower rental Mainly due
Slide 8: Cashflow and Financial Indicators
H1 FY2021/22 Financials Cashflow and Financial Indicators Business Update Segment Results Outlook and Dividends
Slide 9: Improved net cashflow in H1
Improved net cashflow in H1 Cashflow, S$M H1 FY20/21 H1 FY21/22 Lower operating cashflow mainly Operating cashflow before WC changes 75.5 76.5 due to changes in working capital Changes in working capital 63.9 (36.6) movements Income tax paid (13.8) (5.5) Operating cashflow 125.6 34.5 Mainly due to a
Slide 10: Strong financial indicators and liquidity position
Strong financial indicators and liquidity position As at Mar 21 As at Sep 21 Cash and cash equivalents 501.2 480.51 Borrowings 322.3 314.81 The Group remains in a net cash Net cash / (debt) position 178.9 165.8 position H1 FY20/21 H1 FY21/22 EBITDA2 72.6 85.3 Lower coverage ratio due to EBITDA to fi
Slide 11: Business Update
H1 FY2021/22 Financials Cashflow and Financial Indicators Business Update Segment Results Outlook and Dividends
Slide 12: Post and Parcel
Post and Parcel
Slide 13: Domestic Post & Parcel: Decline in Letters & Printed Papers continues
Domestic Post & Parcel: Decline in Letters & Printed Papers continues as expected while service quality has improved Revenue & volume trends for Post & Parcel service quality metrics have improved Letters & Printed Papers Revenue (S$m) -15% Postal SLA Q1 FY21/22 Postal SLA Q2 FY21/22 64 55 H1 FY20/2
Slide 14: Domestic Post & Parcel: eCommerce logistics continues to grow
Domestic Post & Parcel: eCommerce logistics continues to grow and now accounts for 40% of revenue Revenue & volume trends for eCommerce logistics revenue as % of Total DPP revenue eCommerce logistics (DPP) (rolling 6 months) Revenue (S$m) +32% 45% 45.5 eCommerce logistics accounted 40% for 40% of DP
Slide 15: Domestic Post & Parcel: Revenue continues to grow on eCommerce growth
Domestic Post & Parcel: Revenue continues to grow on the back of eCommerce growth Growth in eCommerce logistics revenue has offset Key Highlights letter mail decline for four straight quarters Excluding the benefit of government grants last year, earnings have stabilised year on year and provides a
Slide 16: International Post & Parcel: active measures taken to stabilise business
International Post & Parcel: Amid continued impact of Covid-19 disruptions, active measures have been taken to stabilise the business Covid-19 continues to impact air freight capacity Lower revenue due to rationalisation of volumes considering and conveyance costs tradelane economics Average No. of
Slide 17: Logistics
Logistics
Slide 18: CouriersPlease: Volume and revenue growth supported by eCommerce adoption
CouriersPlease: Volume and revenue growth supported by accelerated eCommerce adoption and new business wins amid the pandemic Key Highlights Volume growth No. of consignments (mil) Network capacity expansion Technology upgrade in and enhancement underway progress to improve efficiency and service +1
Slide 19: Key Highlights for Quantium Solutions & Famous Holdings
Key Highlights for Quantium Solutions & Famous Holdings Famous Holdings Performance continues to improve due to new business wins, cost management and process re-engineering Benefitted from higher volume and sea freight rates amid disruption to global supply chains Warehouse utilization close to ful
Slide 20: Australia: Scaling up eCommerce logistics capabilities as 2nd home market
Australia: Scaling up eCommerce logistics capabilities and driving synergies as we build a 2nd home market Building end-to-end capabilities CROSS BORDER WAREHOUSE- SHIPPING FULFILLMENT Famous Holdings FREIGHT LAST MILE FORWARDING DELIVERY TRANSPORT 4PL TECH SOLUTIONS 20 20
Slide 21: Property
Property
Slide 22: Committed occupancy for SPC Mall and Office remains high
Committed occupancy for SPC Mall and Office remains high; more Industrial space available for lease Committed Occupancy As at Mar 20 Sep 20 Mar 21 Sep 21 SPC Mall 100% 100% 94.1% 100% SPC Office/ Enrichment 97.8% 98.8% 96.6% 97.6% SPC Industrial 100% 100% 100% 0%1 SPC Total 98.5% 99.2% 96.1% 93.3% O
Slide 23: Higher SPC Mall Footfall and Tenant Sales
Higher SPC Mall Footfall and Tenant Sales Footfall up 11% Tenant sales up 33% (Mil) (S$ Mil) +33% +11% $31.5 4.4 4.0 $23.6 Footfall Footfall H1 FY20/21 H1 FY21/22 H1 FY20/21 H1 FY21/22 23
Slide 24: Majority of leases expiring in FY21/22 renewed or replaced
Majority of leases expiring in FY21/22 have been renewed or replaced Lease Expiries & Renewals FY21/22 (Expiring leases) FY21/22 (Renewed or replaced) Renewal / No. of NLA As % of No. of NLA As % of Replacement rate leases (‘000 sq ft) total NLA leases (‘000 sq ft) total NLA SPC Mall 41 50 29% 37 38
Slide 25: Group
Group
Slide 26: Group: eCommerce logistics accounts for ~55% of Group revenue
Group: eCommerce logistics accounts for ~55% of Group revenue eCommerce related revenue accounted for Robust growth in eCommerce logistics volumes ~55% of Group revenue in H1 FY21/22 for Singapore and Australia last-mile deliveries H1 FY20/21 H1 FY21/22 +29% -27% Non-eCommerce Exposure 23.1 9.8 +11%
Slide 27: Segment Results
H1 FY2021/22 Financials Cashflow and Financial Indicators Business Update Segment Results Outlook and Dividends
Slide 28: Post & Parcel
Post & Parcel Segment P&L, S$M H1 FY20/21 H1 FY21/22 % change Decline in International Post & Parcel revenue, partially offset by Revenue 394.8 325.5 (17.5%) strong growth in domestic eCommerce logistics International 274.7 201.8 (26.6%) Domestic1 120.0 123.8 +3.1% eCommerce logistics 34.5 45.5 +32.
Slide 29: Logistics
Logistics Segment P&L, S$M H1 FY20/21 H1 FY21/22 % change Driven by higher revenue from Revenue 292.7 379.5 +29.6% Famous Holdings and CouriersPlease eCommerce logistics1 166.1 172.7 +4.0% Freight forwarding2 126.7 206.9 +63.3% Mainly due to higher revenue and margins for Famous Operating Profit 5.7
Slide 30: Property & Self-storage
Property & Self-storage Segment P&L, S$M H1 FY20/21 H1 FY21/22 % change Mainly due to lower rental Revenue 55.4 59.8 +7.9% rebates given to tenants Property 44.5 48.5 +9.1% Self-storage 10.9 11.2 +3.1% Operating Profit 23.5 26.6 +13.5% Total figures may not tally due to rounding 30
Slide 31: Outlook and Dividends
H1 FY2021/22 Financials Cashflow and Financial Indicators Business Update Segment Results Outlook and Dividends
Slide 32: Outlook
Outlook Covid-19 continues to create disruption and uncertainty, but has also created opportunities for SingPost Accelerate investment in Freight Management Holdings (“FMH”), in line with strategy to build a second home market in Australia The International Post and Parcel business is expected to gr
Slide 33: SingPost Group Strategy
SingPost Group Strategy Transformation to a leading eCommerce logistics solutions provider in Asia-Pacific Future of Post Second International to dominate home market logistics domestic in Australia business re- market engineering Property as an enabler 3333
Slide 34: Acceleration of investment in FMH
Acceleration of investment in FMH Increase shareholding in Freight Management Holdings (“FMH”) from 28% to 51%, subject to shareholder approval In line with strategic goals of building a 2nd home market in Australia and transforming into a leading eCommerce logistics solutions provider in Asia-Pacif
Slide 35: Prudent approach to dividends
Prudent approach to dividends While the Group’s performance has improved, the International Post & Parcel business continues to be affected by air freight disruptions caused by Covid-19, and it remains unclear when the situation will improve. The Group will continue to adopt a prudent approach in ma
Slide 36: Thank You
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