Singapore Post Ltd. · SGX:S08
Singapore Post — H1 FY2006/07 Earnings Presentation
38 slides from Singapore Post's earnings presentation, Oct 31, 2006
Slide 1: SGX Announcement: Presentation Slides for Q2 and Half Year Results
MISCELLANEOUS Page 1 of 1 Print this page Miscellaneous * Asterisks denote mandatory information Name of Announcer * SINGAPORE POST LIMITED Company Registration No. 199201623M Announcement submitted on behalf of SINGAPORE POST LIMITED Announcement is submitted with SINGAPORE POST LIMITED respect to
Slide 2: Q2 & First Half FY2006/07 Results
Singapore Post Limited Q2 & First Half FY2006/07 Results Financial Year ending 31 March 2007 31 October 2006
Slide 3: Agenda
Agenda ♦ Strategic Overview ♦ Q2 FY2006/07 Results ♦ First Half FY2006/07 Results ♦ Segment Results ♦ Cashflow, Dividends ♦ Outlook ♦ Summary The following presentation contains forward looking statements by the management of Singapore Post Limited ("SingPost"), relating to financial trends for futu
Slide 4: Strategic Overview
Yours Aluays Strategic Overview
Slide 5: Focus on Execution Excellence
Strategic Overview Focus on Execution Excellence ♦ Execution of strategies and Business Initiatives plans Mail Grow direct mail, mailroom — Pursue initiatives to grow core management, international mail business of Mail and Logistics businesses — Leverage retail and distribution Logistics Focus on c
Slide 6: Extending Regional Reach
Strategic Overview Extending Regional Reach ♦ Extending core competencies and existing businesses into the region Regional Initiatives Hybrid mail Increasing regional presence for hybrid mail operations via DataPost Cross border mail Cross border business mail operations via Spring JV Logistics Tie-
Slide 7: Q2 FY2006/07 Results
Yours Aluays Q2 FY2006/07 Results
Slide 8: Q2 FY06/07 Group Results
Q2 FY06/07 Group Results Revenue ♦ Revenue growth of 3.5% $M overlapping strong Q2 last year 3.5% 103.0 106.6 — Also impacted by timing difference in projects and cessation of contracts that were not feasible with increased operating costs ♦ Underlying EBITDA remained firm Q2 FY05/06 Q2 FY06/07 Unde
Slide 9: Quarterly Trends
Quarterly Trends Revenue Growth Trend ♦ Underlying EBITDA growth $M 3.5% trend steady 8.2% 12.6% 7.4% 11.3% 8.5% 108.0 106.6 ♦ Lower underlying net profit 105.0 105.1 103.0 103.0 96.8 100.5 growth in FY2006/07 mainly 89.4 91.5 94.3 96.8 due to impact of higher interest expenses Q1 Q2 Q3 Q4 Q1 Q2 FY0
Slide 10: Q2 FY06/07 Segment Results
Q2 FY06/07 Segment Results Mail Revenue and Profit ♦ Improvements in performance $M 1.7% by all business segments — Mail → timing difference in 80.8 82.2 projects 1.9% — Logistics → cessation contracts that were not feasible with 31.4 32.0 increased operating costs — Retail → continued strong Q2 Q2
Slide 11: Q2 FY06/07 Profit & Loss Highlights
Q2 FY06/07 Profit & Loss Highlights ♦ Underlying operating performance remained firm ($M) Q2 FY05/06 Q2 FY06/07 Change Revenue 103.0 106.6 3.5% Other income 4.6 10.2 119.6% Operating expenses (71.2) (72.5) (1.9%) Operating profit 36.5 44.3 21.4% Share of assoc & JVs 2.2 2.4 6.7% Net finance costs (1
Slide 12: Q2 FY06/07 Operating Expenses
Q2 FY06/07 Operating Expenses ♦ Increase in volume-related costs in tandem with business growth ♦ Continued control over other expenses Q2 Q2 ($M) Change FY05/06 FY06/07 Operating expenses 71.2 72.5 +1.9% $0.4M 1.5% $1.3M 28.5 5.4% 28.1 25.8 $0.4M 24.5 2.3% 18.6 18.1 $M Labour and related costs Volu
Slide 13: Quarterly Profit Margins
Quarterly Profit Margins Underlying Operating Profit Margins ♦ Profit margins held firm — Q2 FY06/07 operating profit margin steady at 37.1% 37.1% 37.4% 37.8% 37.5% 36.4% — Focus on maintaining margins 35.4% Q1 Q2 Q3 Q4 Q1 Q2 FY05/06 FY06/07 Underlying EBITDA Margins Underlying Net Profit Margins 45
Slide 14: First Half FY2006/07 Results
First Half FY2006/07 Results 12
Slide 15: H1 FY06/07 Group Results
H1 FY06/07 Group Results Revenue ♦ Good performance in first half $M ♦ Underlying EBITDA 199.8 5.9% 211.6 improvement of 6.0% ♦ Lower underlying net profit growth due to higher interest expense in FY06/07 H1 FY05/06 H1 FY06/07 Underlying EBITDA* Underlying Net Profit* $M $M 6.0% 94.9 3.6% 89.6 61.8
Slide 16: H1 FY06/07 Segment Results
H1 FY06/07 Segment Results Mail Revenue and Profit ♦ Improvements in performance $M 3.5% by all business segments achieved for the first half 159.0 164.6 3.9% 62.1 64.6 H1 H1 H1 H1 FY05/06 FY06/07 FY05/06 FY06/07 Logistics Revenue and Profit Retail Revenue and Profit $M $M 7.2% 14.1% 31.3 26.7 29.2
Slide 17: H1 FY06/07 Profit & Loss Highlights
H1 FY06/07 Profit & Loss Highlights ♦ Firm underlying performance in first half ($M) H1 FY05/06 H1 FY06/07 Change Revenue 199.8 211.6 5.9% Other income 9.6 15.5 61.2% Operating expenses (136.7) (143.4) (4.9%) Operating profit 72.7 83.7 15.1% Share of assoc & JVs 4.1 3.8 (7.6%) Net finance costs (2.6
Slide 18: H1 FY06/07 Operating Expenses
H1 FY06/07 Operating Expenses ♦ Increase in volume-related costs in tandem with business growth ♦ Continued control over other expenses H1 H1 ($M) Change FY05/06 FY06/07 Operating expenses 136.7 143.4 +4.9% $2.6M 4.8% $3.9M 56.7 8.5% 54.1 50.6 $0.1M 46.7 0.3% 35.9 36.0 $M Labour and related costs Vo
Slide 19: Segment Results
Segment Results Yours Aluays 17
Slide 20: Mail – Q2 FY06/07 Performance
Mail – Q2 FY06/07 Performance ♦ Mail revenue ↑ 1.7% or $1.4M, overlapping strong Q2 last year — Also impact of timing difference in projects ♦ Mail profit ↑ 1.9% or $0.6M against last year ♦ Mail profit margin maintained Mail Mail Revenue Mail Operating Profit Operating Profit Margin $M $M 80.8 82.2
Slide 21: Mail – Q2 FY06/07 Revenue Breakdown
Mail – Q2 FY06/07 Revenue Breakdown Q2 Q2 ($M) Change FY05/06 FY06/07 Mail Revenue 80.8 82.8 + 1.7% Growth in direct mail and mailroom management activities Higher outgoing $0.6M 1.1% international mail volumes 49.3 $0.6M New customers 48.8 One-off joint stamp 2.3% and services issue with Belgium in
Slide 22: Mail – H1 FY06/07 Performance
Mail – H1 FY06/07 Performance ♦ Mail revenue ↑ 3.5% or $5.6M against last year ♦ Mail profit ↑ 3.9% or $2.5M against last year ♦ Slight improvement in mail profit margin from 39.1% to 39.2% Mail Mail Revenue Mail Operating Profit Operating Profit Margin $M $M 164.6 159.0 $5.6M $2.5M 39.1% 39.2% 62.1
Slide 23: Mail – H1 FY06/07 Revenue Breakdown
Mail – H1 FY06/07 Revenue Breakdown H1 H1 ($M) Change FY05/06 FY06/07 Mail Revenue 159.0 164.6 + 3.5% Increase in direct mail and mailroom management activities $1.6M Growth in outgoing 1.7% international mail 99.6 Higher volumes $2.9M from new customers 98.0 5.8% and services Growth in MyStamp $M 5
Slide 24: Logistics – Q2 FY06/07 Performance
Logistics – Q2 FY06/07 Performance ♦ Logistics revenue ↑ 2.7% or $0.4M — Ceased contracts that were not feasible with increased operating costs ♦ Logistics profit ↑ 16.0% or $0.3M against last year ♦ Profit margin improved from 13.3% to 15.0% Logistics Logistics Revenue Logistics Operating Profit Op
Slide 25: Logistics – Q2 FY06/07 Revenue Breakdown
Logistics – Q2 FY06/07 Revenue Breakdown Q2 Q2 ($M) Change FY05/06 FY06/07 Logistics Revenue 15.5 15.9 +2.7% Increased contributions from Speedpost Islandwide $0.6M 4.6% 14.5 Ceased contracts that were 13.8 not feasible with increased operating costs $0.2M 13.0% $M Q2 FY05/06 Q2 FY06/07 1.6 1.4 Spee
Slide 26: Logistics – H1 FY06/07 Performance
Logistics – H1 FY06/07 Performance ♦ Logistics revenue ↑ 7.2% or $2.1M ♦ Logistics profit ↑ 20.1% or $0.7M against last year ♦ Profit margin improved from 12.5% to 14.0% Logistics Logistics Revenue Logistics Operating Profit Operating Profit Margin $M $M $2.1M 31.3 $0.7M 29.2 +7.2% +20.1% 14.0% 4.4
Slide 27: Logistics – H1 FY06/07 Revenue Breakdown
Logistics – H1 FY06/07 Revenue Breakdown H1 H1 ($M) Change FY05/06 FY06/07 Growth in Speedpost Logistics Revenue 29.2 31.3 +7.2% Islandwide and Worldwide $1.9M 7.1% 28.3 26.4 New business acquired offset impact of contract cessation $0.2M 8.4% $M H1 FY05/06 2.8 3.0 H1 FY06/07 Speedpost Warehousing,
Slide 28: Retail – Q2 FY06/07 Performance
Retail – Q2 FY06/07 Performance ♦ Retail revenue ↑ 14.1% or $1.7M on growth in financial services ♦ Retail profit ↑ 67.7% or $0.9M ♦ Retail profit margin improved from 11.3% to 16.6% Retail Retail Revenue Retail Operating Profit Operating Profit Margin $M $M $1.7M 14.0 $0.9M 12.3 +14.1% +67.7% 16.6%
Slide 29: Retail – Q2 FY06/07 Revenue Breakdown
Retail – Q2 FY06/07 Revenue Breakdown Q2 Q2 ($M) Change FY05/06 FY06/07 Increased contributions from Retail Revenue 12.3 14.0 +14.1% Retail products partly offset decline in agency and bill presentment services $0.2M Continued growth in $0.02M 3.0% financial services 0.4% $1.9M 5.1 105.2% 5.3 5.3 5.
Slide 30: Retail – H1 FY06/07 Performance
Retail – H1 FY06/07 Performance ♦ Retail revenue ↑ 14.1% or $3.3M ♦ Retail profit ↑ 60.2% or $1.5M ♦ Retail profit margin improved from 10.8% to 15.2%, due to increasing contributions from higher-value financial services Retail Retail Revenue Retail Operating Profit Operating Profit Margin $M 26.7 $
Slide 31: Retail – H1 FY06/07 Revenue Breakdown
Retail – H1 FY06/07 Revenue Breakdown H1 H1 ($M) Change FY05/06 FY06/07 Growth in Retail products Retail Revenue 23.4 26.7 +14.1% partly offset decline in agency and bill presentment services Increasing contributions $0.04M $0.3M from financial services 0.4% 2.8% 10.5 10.6 9.8 $3.5M 10.0 123.1% 6.4
Slide 32: Cashflow, Dividends
Cashflow, Dividends Yours Aluays 30
Slide 33: Cash Flow, Dividends
Cash Flow, Dividends Net Operating Cashflow ♦ Robust cashflow generation $M 144.4 149.7 — In H1 FY06/07, net cash inflow from 121.7 operating activities amounted to $74.6M, compared to $61.6M 74.6 previously — $20M partial repayment of $60M term loan in H1 FY06/07 FY03/04 FY04/05 FY05/06 H1 FY06/07
Slide 34: Outlook
Outlook Sours Aluays 32
Slide 35: Outlook
Outlook ♦ Deregulation of Basic Mail Services (letters and postcards) when licence expires 31 March 2007 ♦ Well positioned to address challenges of postal deregulation ♦ Continue to pursue initiatives to grow core business of Mail and Logistics, as well as leverage retail network for growth — Positi
Slide 36: Summary
Summary Sours Aluays 34
Slide 37: Summary
Summary ♦ Improvements in Q2 and H1 operating performance Q2 FY06/07 H1 FY06/07 Operating profit growth +21.4% (+8.3%) +15.1% (+7.8%) Net profit growth +19.9% (+4.0%) +12.5% (+3.6%) * Underlying performance in italics and brackets ♦ Cashflow remains strong — Net cash inflow from operating activities
Slide 38: Thank You
Thank You Sours Aluays 36