Singapore Post Ltd. · SGX:S08
Singapore Post — Q3 FY2015/16 Earnings Presentation
25 slides from Singapore Post's earnings presentation, Feb 4, 2016
Slide 1: Q3 & 9M FY2015/16 Financial Results
Q3 & 9M FY2015/16 Financial Results 4 February 2016
Slide 2: Agenda
Agenda Overview & 9M FY15/16 Financials eCommerce-Related Revenues Segmental Results Business Update 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 pr
Slide 3: Executive Summary
Executive Summary All figures for 9M FY2015/16, unless otherwise stated Transformation well on track eCommerce growth momentum continues, with eCommerce related revenues rising 53% to S$278.1 million eCommerce related revenues now makes up 33.4% of Group revenue Improved operating profit margins
Slide 4: 9M FY2015/16: Delivered earnings growth despite investments in transformation
9M FY2015/16: Delivered earnings growth despite investments in transformation 9M FY2015/16 P&L, $M 9M FY15/16 9M FY14/15 YoY % change New acquisitions; Revenue 834.0 670.9 +24.3% eCommerce related growth Rental and property-related income 29.9 33.0 (9.5%) Redevelopment of SPC mall Miscellaneous 46.2
Slide 5: Q3 FY2015/16: Operating profit up 7.2%
Q3 FY2015/16: Operating profit up 7.2% Q3 FY2015/16 P&L, $M Q3 FY15/16 Q3 FY14/15 YoY % change Revenue 316.2 239.6 +32.0% Rental and property-related income 9.3 10.9 (15.2%) Miscellaneous 3.0 0.2 @ Total expenses (273.3) (198.1) +37.9% Operating profit 54.6 50.9 +7.2% Share of associated companies &
Slide 6: Strong revenue growth driven by eCommerce related activities and acquisitions
Strong revenue growth driven by eCommerce related activities and acquisitions 9M FY2014/15 vs. 9M FY2015/16 Revenue performance, $M +24.3% 834.0 Growth in SP eCommerce’s business; 102.6 +50.8% Consolidation of TradeGlobal acquisition2 670.9 Retail & eCommerce 68.0 Rise in eCommerce Logistics activit
Slide 7: Expenses rose in tandem with business growth
Expenses rose in tandem with business growth Total expenses 9M FY2015/16 breakdown, $M 9M FY15/16 9M FY14/15 YoY % change Labour & related 220.8 191.8 +15.2% In line with higher traffic volumes Volume-related 375.7 265.8 +41.4% and increased business activities Admin & others 102.5 76.5 +34.0% Mainl
Slide 8: Operating profit up 18.5% on strong growth in Logistics segment and one-off divestment gains
Operating profit up 18.5% on strong growth in Logistics segment and one-off divestment gains 9M FY2014/15 vs. 9M FY2015/16 Operating profit performance, $M +18.5% 176.8 Divestment gain on sale of Novation Solutions and DataPost 149.2 32.5 5.5 Reflects investments in front-end eCommerce capabilities
Slide 9: Healthy balance sheet & financial indicators
Healthy balance sheet & financial indicators $M 9M FY15/16 9M FY14/15 Operating Cash Flow (before working capital changes) 162.3 163.7 Steady operating cash flows Changes in working capital (60.7) (15.9) Higher receivables & higher settlements for trade payables Cash flow used in investing activitie
Slide 10: Agenda
Agenda Overview & 9M FY15/16 Financials eCommerce-Related Revenues Segmental Results Business Update 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 pr
Slide 11: eCommerce related revenues rose 53% year-on-year to S$278.1m
eCommerce related revenues rose 53% year-on-year to S$278.1m Revenue 9M FY2013/14 – 9M FY2015/16, $M 834.0 670.9 Group Revenue 627.8 Retail & eCommerce 555.8 $55.1M 489.2 20% Mail 466.2 Non-eCommerce related 33.4% eCommerce 42% $117.1M related revenues 27.1% $278.1M 25.7% 278.1 Logistics 38% eCommer
Slide 12: Overseas revenue now 41.9% of Group revenue
Overseas revenue now 41.9% of Group revenue Group revenue footprint 9M FY2013/14 – 9M FY2015/16 834.0 670.9 Group Revenue 627.8 484.8 462.7 Domestic 453.3 41.9% 27.8% 31.0% 349.1 Overseas 174.6 208.2 9M FY13/14 9M FY14/15 9M FY15/16 Differences in total due to rounding 11
Slide 13: Agenda
Agenda Overview & 9M FY15/16 Financials eCommerce-Related Revenues Segmental Results Business Update 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 pr
Slide 14: Mail: Q3 FY2015/16 Performance
Mail: Q3 FY2015/16 Performance $M Mail Q3 FY15/16 Q3 FY14/15 YoY % change Revenue 130.6 130.1 +0.4% Mail revenue rose 0.4% despite the cessation of Hybrid mail revenues from Operating profit 38.9 37.9 +2.5% the divestment of Novation Solutions in Q1 and DataPost in Q2 OP margin 29.8% 29.2% Internati
Slide 15: Mail: 9M FY2015/16 Performance
Mail: 9M FY2015/16 Performance $M Mail 9M FY15/16 9M FY14/15 YoY % change Revenue 372.3 376.8 (1.2%) Operating profit 112.7 107.1 5.2% OP margin 30.3% 28.4% Revenue breakdown 9M FY15/16 9M FY14/15 YoY % change Domestic mail 192.0 186.9 +2.7% International mail 165.4 156.0 +6.0% Hybrid mail 11.3 31.4
Slide 16: Logistics: Q3 FY2015/16 Performance
Logistics: Q3 FY2015/16 Performance $M Logistics Q3 FY15/16 Q3 FY14/15 YoY % change Revenue 162.2 122.1 +32.9% Strong revenue growth driven by higher contributions from eCommerce Operating profit 12.1 6.9 +74.7% related activities and inclusion of new subsidiaries OP margin 7.5% 5.7% Operating profi
Slide 17: Logistics: 9M FY2015/16 Performance
Logistics: 9M FY2015/16 Performance $M Logistics 9M FY15/16 9M FY14/15 YoY % change Revenue 458.4 328.5 +39.5% Operating profit 26.1 16.6 +57.6% OP margin 5.7% 5.0% Revenue breakdown 9M FY15/16 9M FY14/15 YoY % change Quantium Solutions 216.8 130.7 +65.8% Famous 166.8 127.4 +30.9% Others 74.8 70.3 +
Slide 18: Retail & eCommerce: 3Q FY2015/16 Performance
Retail & eCommerce: 3Q FY2015/16 Performance $M Retail & eCommerce 3Q FY15/16 3Q FY14/15 YoY % change Revenue 54.5 22.9 +138.4% Revenue driven by consolidation of TradeGlobal financials from 14 Nov Operating profit 4.2 1.7 +138.9% 2015, as well as growth in SP eCommerce business OP margin 7.6% 7.6%
Slide 19: Retail & eCommerce: 9M FY2015/16 Performance
Retail & eCommerce: 9M FY2015/16 Performance $M Retail & eCommerce 9M FY15/16 9M FY14/15 YoY % change Revenue 102.6 68.0 +50.8% Operating profit 5.5 7.2 (24.5%) OP margin 5.3% 10.6% Revenue breakdown 9M FY15/16 9M FY14/15 YoY % change eCommerce 55.1 19.3 +184.9% SP eCommerce 25.7 19.3 +33.0% TradeGl
Slide 20: Agenda
Agenda Overview & 9M FY15/16 Financials eCommerce-Related Revenues Segmental Results Business Update 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 pr
Slide 21: eCommerce Logistics Network Development
eCommerce Logistics Network Development eCommerce Warehousing & Last Mile Delivery & Freight, Customs & Services Fulfilment Returns Regulations Management eCommerce Logistics & Operations Postal International mail Marcelo Wesseler Sascha Hower Woo Keng Leong Goh Hui Ling CEO, Group COO, CEO, Deputy
Slide 22: SP Commerce now offers global eCommerce logistics solutions
SP Commerce now offers global eCommerce logistics solutions with the integration of TradeGlobal and Jagged Peak SingPost Group Global footprint 1 GROSS END-TO-END 50+ MERCHANDISE OPERATING IN GENERATING SOLUTIONS TO 18 VALUE REVENUE & PROFIT MORE THAN Synergies US$3b ANNUALLY COUNTRIES 100 MONOBRAND
Slide 23: Post-Merger Integration Case Study – Couriers Please
Post-Merger Integration Case Study – Couriers Please1 Rollout of new international service On top of domestic packages delivery, Couriers Please introduced a new outbound delivery service, leveraging SingPost’s international network to handle overseas parcel delivery Expanded delivery & pick-up capa
Slide 24: Summary
Summary Good performance in Q3 and 9M FY2015/16 • Continued eCommerce growth momentum • Declining trend of transactional mail volumes but offset by increasing international mail volumes Continued momentum in transformation initiatives Focusing on consolidation and post-merger integration for scale b
Slide 25: Thank you
. Thank you A\