Singapore Post Ltd. · SGX:S08
Singapore Post — FY2018/19 Earnings Presentation
27 slides from Singapore Post's earnings presentation, May 7, 2019
Slide 1: Financial results Q4 & FY2018/19
Financial results Q4 & FY2018/19 7 May 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
• FY2018/19 & Q4 Financials • Cash flow and Balance sheet • Segmental results • Outlook 2
Slide 4: Overview – FY2018/19
Overview – FY2018/19 Revenue Profit on operating activities S$1,556.7 million S$136.3 million +2.9% YoY -7.2% YoY Underlying net profit FY18/19 total dividend S$100.1 million 3.5 cents per share -5.8% YoY same as last year (+15.8% excluding U.S. businesses) Underlying net profit growth excluding U.S
Slide 5: FY2018/19 financial statement
FY2018/19 financial statement YoY S$M FY17/18 FY18/19 % change Revenue growth in Post & Parcel Revenue 1,513.4 1,556.7 +2.9% and Property segments Operating expenses (1,373.2) (1,424.0) +3.7% Due to higher losses for the U.S. businesses as well as trade-related foreign exchange translation Profit on
Slide 6: FY2018/19 operating expenses
FY2018/19 operating expenses YoY S$M FY17/18 FY18/19 % change Higher mail conveyance cost due to higher terminal dues. Outsourced services, which Volume-related (816.1) (875.2) +7.2% are largely incurred in the U.S. for freight purposes, rose significantly faster than Labour & related (328.2) (318.9
Slide 7: FY2018/19 segment revenue and profit on operating activities
FY2018/19 segment revenue and profit on operating activities S$M Revenue 1,513.4 1,556.7 90.7 13.5% Profit on Property 79.9 operating activities 146.9 136.3 eCommerce 249.8 248.9 0.3% 53.7 29.8% Property 41.3 Logistics 497.4 496.1 0.3% Post and Parcel 164.3 165.9 1.0% 764.8 4.1% Post and Parcel 734.
Slide 8: FY2018/19 Underlying net profit movement
FY2018/19 Underlying net profit movement S$M Logistics Post & Other profit1 Parcel profit1 Associates items2 & JV eCommerce Property loss3 profit1 8.1 1.6 4.0 32.3 8.1 12.3 106.3 100.1 -5.8% FY17/18 FY17/18 Property Others Logistics Post & Associates & eCommerce FY18/19 FY18/19 1. Profit on operatin
Slide 9: Impairment of TradeGlobal and Jagged Peak
Impairment of TradeGlobal and Jagged Peak Impairment of TradeGlobal and Jagged Peak Further to the announcement in the Q3 quarterly results of the risk of impairment, the Group has reviewed the carrying value of the U.S. businesses, which involved a review of historical performance and evaluation of
Slide 10: Exceptional items
Exceptional items Q4 FY2018/19 Exceptional loss : S$92.2 million Comprising largely: • Impairment for TradeGlobal and Jagged Peak: S$98.7 million • Provision for restructuring of overseas operations: S$9.9 million Partially offset by exceptional gains: • Fair value gain on investment properties (Sin
Slide 11: Q4 FY2018/19 financial statement
Q4 FY2018/19 financial statement YoY S$M Q4 FY17/18 Q4 FY18/19 % change Revenue 381.9 374.1 (2.1%) Revenue decline in Logistics and eCommerce segments Operating expenses (350.9) (360.2) +2.7% Largely due to higher losses for the Profit on operating activities 32.0 14.9 (53.4%) U.S. businesses Share
Slide 12: Q4 FY2018/19 operating expenses
Q4 FY2018/19 operating expenses YoY S$M Q4 FY17/18 Q4 FY18/19 % change Largely due to higher outsourced Volume-related (210.8) (216.0) +2.4% expenses for the U.S. businesses Labour & related (80.0) (82.9) +3.6% Additional postmen and increased incentive payments to improve service levels Admin, sell
Slide 13: Q4 FY18/19 segment revenue and profit on operating activities
Q4 FY18/19 segment revenue and profit on operating activities S$M Revenue 381.9 374.1 Profit on Property 22.2 operating activities 32.0 14.9 22.7 2.2% eCommerce 61.8 57.0 7.7% Property 13.1 13.3 1.7% Logistics 120.2 116.7 2.9% Post and Parcel 37.5 34.4 8.3% Post and Parcel 189.3 188.8 0.2% (0.2) Log
Slide 14: Immediate measures to improve service quality
Immediate measures to improve service quality Increase delivery workforce Enhance remuneration • Additional 100 • 35 mail-drop drivers to • Incentives for successful deliveries postmen to join us become full-time postmen of trackable items to doorstep Improve service levels • Additional delivery • M
Slide 15: Cash flow & Balance sheet
Cash flow & Balance sheet 14
Slide 16: Free cash flow
Free cash flow S$M FY17/18 FY18/19 Due to timing of payables and receivables in respect of Operating cash flow before capital charges 196.2 186.8 international postal settlements Changes in working capital 33.3 (3.3) largely for eCommerce deliveries Income tax paid (31.2) (31.3) Due largely to worki
Slide 17: Financial indicators
Financial indicators As at As at S$M Financial indicators Mar 2018 Mar 2019 Higher cash position largely due to cash generated from Cash & cash equivalents at end of financial period 314.1 392.2 operations Borrowings 244.0 290.9 The Group switched from an intercompany loan for a foreign Net cash / (
Slide 18: Segmental results
Segmental results 17
Slide 19: Post and Parcel
Post and Parcel S$M YoY % Q4 Q4 YoY % Post and Parcel FY17/18 FY18/19 change FY17/18 FY18/19 change Revenue 734.8 764.8 +4.1% 189.3 188.8 (0.2%) Domestic mail & SP Parcels 320.7 317.4 (1.0%) 80.4 77.2 (4.0%) International mail1 385.3 421.2 +9.3% 102.4 105.5 +3.0% Post office pdts and svcs 28.8 26.2
Slide 20: Logistics
Logistics YoY % Q4 Q4 YoY % S$M Logistics FY17/18 FY18/19 change FY17/18 FY18/19 change Revenue 497.4 496.1 (0.3%) 120.2 116.7 (2.9%) Quantium Solutions 97.7 91.9 (5.9%) 23.2 21.2 (8.6%) Couriers Please 150.7 149.1 (1.0%) 36.1 33.4 (7.5%) Famous 249.1 255.2 +2.4% 60.9 62.1 +1.9% Profit on operating
Slide 21: eCommerce
eCommerce YoY % Q4 Q4 YoY % S$M eCommerce FY17/18 FY18/19 change FY17/18 FY18/19 change Revenue 249.8 248.9 (0.3%) 61.8 57.0 (7.7%) Profit on operating activities (19.6) (51.9) (164.9%) (6.8) (18.0) (162.8%) Margin (7.8%) (20.9%) (11.1%) (31.6%) Revenue declined 0.3% for the full year and 7.7% in Q4
Slide 22: Property
Property S$M YoY % Q4 Q4 YoY % Property FY17/18 FY18/19 change FY17/18 FY18/19 change Revenue 79.9 90.7 +13.5% 22.2 22.7 +2.2% Profit on operating activities 41.3 53.7 +29.8% 13.1 13.3 +1.7% Margin 51.7% 59.1% 58.9% 58.5% Property segment revenue, which comprises commercial property rental and the s
Slide 23: Outlook
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Slide 24: Outlook
Outlook The Post & Parcel business is expected to benefit from the continued growth in global eCommerce activities. Although domestic letter mail volumes are expected to trend moderately downwards, the Group is integrating its postal and parcel delivery capabilities in Singapore to achieve operation
Slide 25: Thank You
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Slide 26: Supplementary information
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Slide 27: Underlying Net Profit Reconciliation Table
Underlying Net Profit Reconciliation Table Q4 Q4 S$M FY17/18 FY18/19 FY17/18 FY18/19 Profit attributable to equity holders 135.5 19.0 31.8 (75.1) Exceptional items (22.3) 69.3 (16.5) 92.2 Additional provision for contingent consideration in a foreign subsidiary - 2.5 - - Gain on dilution of interest