Comfortdelgro Corporation Limited · SGX:C52
Comfortdelgro — H1 2023 Earnings Presentation
34 slides from Comfortdelgro's earnings presentation, Aug 14, 2023
Slide 1: 1H2023 Financial Results Presentation
1H2023 Financial Results Presentation 14 August 2023
Slide 2: Disclaimer
Disclaimer This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for shares (“Shares”) in ComfortDelGro Corporation Limited (the "Company"). The value of shares and the income derived from them may fall as well as rise. Shares are
Slide 3: Contents
Contents • Executive Summary • Review of Financial Results • Performance by Business Segments • Business Outlook • Dividend Payout Page 3
Slide 4: Executive Summary
EXECUTIVE SUMMARY page COMFORIDELGRO
Slide 5: Executive Summary
Executive Summary 1H2023 financial performance upturn backed by strong operations and improving fundamentals 1H2023 Financial Highlights 2Q2023 Financial Highlights • Revenue of $1.86b vs $1.94b for 2H2022 • Revenue of $956m, up 5.5% from 1Q2023 • When compared with 1H2022, revenue increased 1.0% •
Slide 6: Key Business Updates
Key Business Updates • Public Transport improved • SG rail ridership increased significantly y-o-y • UK renewals & indexation continue • Taxi & Private Hire demand remains high, but competition is increasing • Modest commissions introduced in 2022 contributing strongly, while rental discounts have t
Slide 7: Growth Strategy
Growth Strategy STRATEGIC IMPERATIVES : GROWTH STRATEGY Expand into Building Future Growing Existing Businesses New Businesses Capabilities Defend the Extend the Expand into New Grow New Businesses Building Future Core Core Countries Capabilities Win tenders Expand into new Pursue overseas Grow EV O
Slide 8: Review of Financial Results
REVIEW OF FINANCIAL RESULTS Page 8
Slide 9: Income Statement
Income Statement $’m 2Q2023 1Q2023 4Q2022 3Q20221 2Q20221 1Q20221 Revenue 955.9 906.4 977.2 960.3 955.8 887.5 Operating Costs (798.8) (767.5) (840.6) (815.8) (801.6) (731.9) Depreciation and Amortisation (91.8) (88.8) (91.3) (88.3) (89.3) (88.3) Operating Profit excl. non-recurring items 65.3 50.1 4
Slide 10: Income Statement
Income Statement $’m 1H2023 2H2022 1H20221 • 1H2023 PATMI ↑$20.7m or 35.8% vs 2H2022 • Inflationary costs pressures and driver shortages subsiding Revenue 1,862.3 1,937.5 1,843.3 • 1H2023 Revenue ↓($75.2m) or (3.9%); Operating Costs Operating Costs (1,566.3) (1,656.4) (1,533.4) ↓$90.1m or 5.4% • Mai
Slide 11: Balance Sheet
Balance Sheet $’m Jun 23 Dec 221 Fav/(Adv) Cash and short-term deposit 877.0 967.0 (90.0) / (9.3%) Other current assets 699.6 677.7 21.9 / 3.2% Non-current assets 3,097.2 3,056.9 40.3 / 1.3% Total Assets 4,673.8 4,701.6 (27.8) / (0.6%) Current liabilities 1,002.6 1,040.8 38.2 / 3.7% Non-current liab
Slide 12: Cashflow
Cashflow $’m 1H2023 1H20221 Cash from Operating Activities 259.8 314.1 Utilisation of Cash: Net CAPEX (152.1) (82.7)* Dividends (117.9) (66.7) Tax (47.4) (40.7) Acquisitions (13.0) (20.8) Others (4.3) (2.7) Total Utilisation of Cash (334.7) (213.6) Net Decrease in Borrowings (11.3) (35.7) Net effect
Slide 13: Group Treasury Status
Group Treasury Status $’m Jun 23 Dec 22 Fav/(Adv) Cash and short-term deposits 877.0 967.0 (90.0) / (9.3%) Borrowings + finance leases (327.2) (313.6) (13.6) / (4.3%) Gross Gearing (gross debt / equity) 10.9% 10.5% (0.4%) points Total Available facilities 766.7 775.4 (8.7) / (1.1%) • Net cash positi
Slide 14: CAPEX Summary
CAPEX Summary 1H2023 1H20221 $164.7m $145.8m Proceeds from $ 12.6 m disposals $ 46.4 m $ 27.6 m Proceeds from $ 63.1 m disposals $ 35.8 m $ 65.1 m $ 152.1 m Net CAPEX $ 40.7 m $ 23.5 m Net CAPEX $ 82.7 m $ 4.9 m $ 21.8 m $ 24.8 m $ 19.9 m Buses Taxis Other vehicles Land and buildings Others • Buses
Slide 15: Revenue by Geographical Region
Revenue by Geographical Region Revenue by Geographical Region ($’m) 1,937.5 1,862.3 1,843.3 1H2023 1,129.0 1,084.4 1,068.0 2H2022 1H2022 414.6 346.1 396.4 380.7 334.8 344.0 45.7 46.8 49.4 1.0 1.0 1.2 Total Singapore UK/Ireland Australia China Vietnam & Malaysia • 1H2023 overseas revenue contribution
Slide 16: Operating Profit by Region
Operating Profit by Region • 1H2022 operating profits not affected by inflation / Ukraine conflict • Also benefitted from pent up demand after lifting of COVID-19 restrictions in Singapore and one-off exceptional gain on disposal of Alperton property in London $37.2m Page 16
Slide 17: Performance by Business Segment
PERFORMANCE BY BUSINESS SEGMENT Page 17
Slide 18: New Segmentation
New Segmentation New Segments Main Components Public Transport Public Bus, Public Rail, Scheduled Bus Taxi & Private Hire Taxi Rental, PHV Rental, Platform Services, Engineering Services, Fuel Sales Other Private Transport Private Bus, Non-Emergency Patient Transport, Corporate Vehicle Leasing Inspe
Slide 19: Public Transport
Public Transport • Main components: Public Bus, Public Rail, Scheduled Bus $’m 2Q2023 1Q2023 4Q2022 3Q2022 2Q2022 1Q2022 Revenue 730.0 686.1 753.2 733.8 735.4 664.4 Operating Costs (701.1) (663.1) (737.9) (706.3) (693.9) (626.7) Operating Profit excl. non- 28.9 23.0 15.3 27.5 41.5 37.7 recurring ite
Slide 20: Public Transport
Public Transport • Main components: Public Bus, Public Rail, Scheduled Bus $’m 1H2023 2H2022 1H20221 • 1H2023 OPE ↑$9.1m or 21.3% vs 2H2022 • Mainly due to improved margins in UK after driver pay deal back Revenue 1,416.1 1,486.8 1,399.8 pay in 4Q2022 Operating Costs (1,364.2) (1,444.0) (1,320.6) •
Slide 21: Taxi & Private Hire
Taxi & Private Hire • Main components: Taxi Rental, PHV Rental, Platform Services, Engineering Services, Fuel Sales $’m 2Q2023 1Q2023 4Q2022 3Q2022 2Q2022 1Q2022 Revenue 140.8 137.1 142.6 142.9 137.4 131.9 Operating Costs (115.0) (120.3) (118.8) (122.4) (124.8) (119.2) Operating Profit excl. non- 25
Slide 22: Taxi & Private Hire
Taxi & Private Hire • Main components: Taxi Rental, PHV Rental, Platform Services, Engineering Services, Fuel Sales $’m 1H2023 2H2022 1H2022 • 1H2023 OPE ↓($1.7m) or (3.8%) vs 2H2022 Revenue 277.9 285.5 269.3 • 1H2023 Revenue ↓($7.6m) or (2.7%); Operating Costs ↓$5.9m or 2.4% Operating Costs (235.3)
Slide 23: Other Private Transport
Other Private Transport • Main components: Private Bus, Non-Emergency Patient Transport, Corporate Vehicle Leasing $’m 2Q2023 1Q2023 4Q2022 3Q2022 2Q2022 1Q2022 Revenue 35.4 34.1 33.4 35.6 36.0 44.4 Operating Costs (36.2) (34.9) (36.9) (38.2) (36.7) (42.2) Operating Profit excl. non- (0.8) (0.8) (3.
Slide 24: Other Private Transport
Other Private Transport • Main components: Private Bus, Non-Emergency Patient Transport, Corporate Vehicle Leasing $’m 1H2023 2H2022 1H2022 • 1H2023 OPE ↑$4.5m or 73.7% vs 2H2022 Revenue 69.5 69.0 80.4 • 1H2023 Revenue ↑$0.5m or 0.7%; Operating Costs ↓$4.0m or 5.3% Operating Costs (71.1) (75.1) (78.
Slide 25: Inspection & Testing Services
Inspection & Testing Services • Main components: Vehicle and Non-vehicle Inspection $’m 2Q2023 1Q2023 4Q2022 3Q2022 2Q2022 1Q2022 Revenue 27.6 27.1 27.0 26.8 26.7 25.5 Operating Costs (19.1) (19.0) (18.2) (18.7) (18.2) (17.5) Operating Profit excl. non- 8.5 8.1 8.8 8.1 8.5 8.0 recurring items (“OPE”
Slide 26: Inspection & Testing Services
Inspection & Testing Services • Main components: Vehicle and Non-vehicle Inspection $’m 1H2023 2H2022 1H2022 • 1H2023 OPE ↓($0.4m) or (2.4%) vs 2H2022 Revenue 54.7 53.8 52.2 • 1H2023 Revenue ↑$0.9m or 1.7%; Operating Costs ↑($1.3m) or (3.5%) Operating Costs (38.1) (36.8) (35.8) • Mainly due to infla
Slide 27: Other Segments
Other Segments • Main components: Driving Centre, Bus Station, Insurance, Media, Logistics, EV Charging $’m 2Q2023 1Q2023 4Q2022 3Q2022 2Q2022 1Q2022 Revenue 22.1 22.0 21.1 21.1 20.1 21.5 Operating Costs (19.2) (19.0) (20.1) (18.6) (17.0) (14.8) Operating Profit excl. non- 2.9 3.0 1.0 2.5 3.1 6.7 re
Slide 28: Other Segments
Other Segments • Main components: Driving Centre, Bus Station, Insurance, Media, Logistics, EV Charging $’m 1H2023 2H2022 1H2022 • 1H2023 OPE ↑$2.4m or 68.6% vs 2H2022 Revenue 44.1 42.2 41.6 • 1H2023 Revenue ↑$1.9m or 4.5%; Operating Costs ↓$0.5m or 1.3% Operating Costs (38.2) (38.7) (31.8) • Mainly
Slide 29: Business Outlook
BUSINESS OUTLOOK page COMFORIDELGRO
Slide 30: Business Outlook
Business Outlook • With inflation levels in many countries stabilizing, Public Transport earnings are expected to continue to recover for the remainder of 2023 and continue to be supported by wages and energy indexation on public bus contracts, to some extent. • Singapore Public Transport revenues a
Slide 31: Dividend Payout
DIVIDEND PAYOUT pageat COMFORIDELGRO
Slide 32: Dividend policy update
Dividend policy update 120% Dividend Payout Ratio History • Updated dividend policy to pay out at least 70% of PATMI going forward 110% • Generally paid out 70%-80% of 100% PATMI as dividends despite previous 90% policy of at least 50% 80% • The new 70% payout ratio provides more certainty to shareh
Slide 33: Financial Year 2023 Dividend Payout
Financial Year 2023 Dividend Payout FY2023 FY20221 Increase / (cents) (cents) (decrease) Interim Dividend 2.90 2.85 0.05 / 1.8% Dividend yield 5.0%(a) 3.7%(b) Special Dividend – 1H2022 - 1.41 Special Dividend yield NA 1.0%(b) • Interim dividend declared at 80% payout ratio on PATMI a) ComfortDelGro
Slide 34: Thank You
THANK YOU mages COMFORIDELGRO