Singapore Post Ltd. · SGX:S08
Singapore Post — Shareholder Meeting (March 2025)
27 slides from Singapore Post's shareholder meeting presentation, Mar 13, 2025
Slide 1: Proposed Disposal of SingPost Australia Investments Pty Ltd
Extraordinary General Meeting 13 March 2025 Proposed Disposal of SingPost Australia Investments Pty Ltd 1 1
Slide 2: Proposed Disposal of SingPost Australia Investments Pty Ltd
Proposed Disposal of SingPost Australia Investments Pty Ltd (“SPAI”) which owns Freight Management Holdings Pty Ltd (“FMH”) 2 2
Slide 3: SingPost share price performance over last 4 years
SingPost share price performance over last 4 years S$0.72 Proposed sale of Australia business S$0.55 Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024 Note: Share price movement from December 2020 to March 2025. 3 3
Slide 4: Strategic reviews undertaken to maximise and unlock value for shareholders
Strategic reviews undertaken to maximise and unlock value for shareholders May 2023 - March 2024 June 2024 - December 2024 Group Strategic Review Australia Strategic Review The review concluded that SingPost was To identify strategic options for future not appropriately valued and the Board value cr
Slide 5: Growth of SingPost Group's Australia business
Growth of SingPost Group’s Australia business Building of SingPost’s Australia business - one of Australia’s leading logistics service providers December 2020 : Initial 28% interest in FMH December 2021 : Raised stake to 51% An end-to-end technology March 2023 : Further raised to 88% enabled B2B2C l
Slide 6: Growth of FMH over last 5 years
Growth of FMH over last 5 years FMH FMH Revenue Revenue EBITDA EBITDA 1000 200 (A$m) (A$m) 802.2 750 150 667.5 632.5 500 473.8 100 295.3 67.2 68.9 70.6 250 50 46.3 25.4 0 0 FY20/21 FY21/22 FY22/23 FY23/24 9MFY24/25 Note: Including acquisition of Border Express and merger of CouriersPlease. 6 6
Slide 7: SingPost share price performance since initial acquisition of FMH
SingPost share price performance since initial acquisition of FMH S$0.72 Increase in FMH stake to 88% Acquisition of remaining 12% Initial acquisition of Acquisition of 28% stake in FMH Border Express Increase in FMH S$0.55 stake to 51% Merger of FMH and CouriersPlease Dec 2020 Dec 2021 Dec 2022 Dec
Slide 8: Options and considerations evaluated in the Australia strategic review
Options and considerations evaluated in the Australia strategic review Key options evaluated Factors considered ● Capital for deleveraging and growth to prepare for future IPO Financial sponsor ● Potentially dilutive to shareholders ● Risks of misalignment on business and timing or pricing of IPO St
Slide 9: Comprehensive buyer outreach in international competitive bid process
Comprehensive buyer outreach in international competitive bid process In the course of the Compelling offer facilitated by a highly competitive process, leading strategic review: to full price discovery ● Unsolicited interest in Jun 24 Strategic review for Australia business initiated acquiring 100%
Slide 10: Key highlights of proposed disposal of SPAI
Key highlights of proposed disposal of SPAI Proposed disposal of SPAI (which holds FMH) to Cash consideration1 of Expected gain Pacific Equity Partners at A$775.9m on disposal of A$1.02b (approx. S$659.5m) S$289.5m Enterprise Value after taking debt (approx. S$867.0m) into account 1Cash consideratio
Slide 11: Proposed disposal at A$1.02b enterprise value offers superior returns to SingPost
Proposed disposal at A$1.02b enterprise value offers superior returns to SingPost S$289.5m Equity outlay of Approx. 4x expected tax-free gain A$93.6m Levered return on equity invested in on disposal in FMH over 4 years FMH1 1Excluding CouriersPlease. 11 11
Slide 12: Use of proceeds
Use of proceeds Expected Use of Proceeds Proceeds Cash consideration Debt repayment Special dividend + residual proceeds A$775.9m A$362.1m retained (approx. S$659.5m) (approx. S$307.8m)1 to be announced2 1A$362.1m (approximately S$307.8m) relates to borrowings undertaken by SingPost for the acquisit
Slide 13: Rationale for proposed disposal
Rationale for proposed disposal The Board determined that a complete disposal of the ● Complete divestment commercially Australia business represents superior to other options the most compelling and value maximising option for shareholders ● The Proposed Disposal would enable SingPost to unlock sig
Slide 14: Directors' Recommendation
Directors’ Recommendation 14 14
Slide 15: Future Perspectives
Future Perspectives 15 15
Slide 16: Future perspectives: Key focus for the Board
Future perspectives: Key focus for the Board 1 Seeking approval for Australia 4 Reviewing the International transaction Logistics Business Unit 2 5 Reaching agreement with Government on the future Completing Board renewal operating model that will place Postal on a profitable and sustainable footing
Slide 17: Future perspectives: Income streams
Future perspectives: Income streams Until the strategy is Singapore Postal International reset, earnings will / eCommerce eCommerce depend on: Logistics Logistics Non-core assets: + Benefits from SingPost Centre cost reduction and Famous measures Holdings 17 17
Slide 18: Future perspectives: Non-core asset disposals
Future perspectives: Non-core asset disposals Intention to sell non-core assets Phasing and timing Disposals contingent to be reviewed on valuation, regulatory, and shareholder approvals 18 18
Slide 19: A future with options
A future with options Finding the right balance in the best interests of shareholders Reinvesting in the Group Divestment of Australia business and future disposals create a cash pool Paying down debt Returning proceeds to shareholders 19 19
Slide 20: Singapore: Path to Sustainable Growth & Profitability
Singapore: Path to Sustainable Growth & Profitability 20 20
Slide 21: Singapore's eCommerce GMV expected to surge while mail slides
Singapore’s eCommerce gross merchandise value (GMV) expected to surge while mail slides Gross Merchandise Value (S$b) Mail Volume (Retail vs Corporate) 600,000,000 Approximately Approximately - +112% 43% ~17 500,000,000 400,000,000 300,000,000 9 8 200,000,000 100,000,000 2023 2024 2030 2020 2021 202
Slide 22: Mail & eCommerce Parcels: One Network
Mail & eCommerce Parcels: One Network 22 22
Slide 23: S$30m investment to expand eCommerce capacity, with further consolidation in the works
S$30m investment to expand eCommerce capacity, with further consolidation in the works By mid-2026 SPC LogHub Expand Parcel Operations 3x capacity, modular and scalable Future SPC LogHub Consolidate Mail with Parcel Operations Reap further efficiency, More leasing opportunities at SPC 23 23
Slide 24: A pathway to growth
A pathway to growth WIP Working with Government Investment to grow Integrate mail and Right-size postal eCommerce logistics parcel infrastructure network including Post capacity as pathway and operations for Office Network to growth greater productivity and efficiency 24 24
Slide 25: Resolution
Resolution The Ordinary Resolution is to approve the proposed disposal of the entire issued share capital of SingPost Australia Investments Pty Ltd by SingPost Logistics Holdings Pte Ltd to Pacific 2023 Bidco E Pty Limited. An Ordinary Resolution will be passed if more than 50% of the total number o
Slide 26: Q&A Session
Q&A Session 26 26
Slide 27: Thank You
Thank You For details, please refer to the EGM Circular to Shareholders in relation to the Proposed Disposal of SingPost Australia Investments Pty Ltd. 27 27