Singapore Post Ltd. · SGX:S08
Singapore Post — FY2019/20 Earnings Presentation
26 slides from Singapore Post's earnings presentation, May 8, 2020
Slide 1: Financial results Q4 & FY2019/20
Financial results Q4 & FY2019/20 8 May 2020
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
• Q4 & FY2019/20 Financials • Cash flow and Balance sheet • Segmental results • Outlook 2
Slide 4: Q4 FY2019/20 financial statement
Q4 FY2019/20 financial statement YoY S$M Q4 FY18/19 Q4 FY19/20 % change Due to a 5.7% decline for the Post Revenue 320.7 312.2 (2.7%) and Parcel segment Largely due to lower contribution from Operating expenses (291.2) (288.8) (0.8%) Domestic Post & Parcel as a result of lower letter volumes, and im
Slide 5: Q4 FY2019/20 expenses
Q4 FY2019/20 expenses YoY Driven substantially by higher conveyance S$M Q4 FY18/19 Q4 FY19/20 % change costs as a result of Covid-19 impact, as well as higher terminal dues for the international Volume-related (167.1) (173.0) +3.5% business, which came into effect from 1 Jan 2020 Admin, selling-rela
Slide 6: Q4 FY19/20 segment revenue and POA (Continuing operations)
Q4 FY19/20 segment revenue and POA (Continuing operations) S$M Revenue 320.7 312.2 Profit on operating activities 30.7 Property 30.4 30.4 0.1% Property 13.3 Logistics 117.9 124.1 5.3% 21.3 13.2 0.8% Post and Parcel 34.4 18.0 47.7% Post and Parcel 188.8 178.2 5.7% Logistics (6.4) (2.2) 65.6% (7.7) 27
Slide 7: FY2019/20 financial statement
FY2019/20 financial statement YoY S$M FY18/19 FY19/20 % change Revenue 1,323.3 1,313.8 (0.7%) Marginal decline in Group revenue Lower contribution from Domestic Operating expenses (1,144.4) (1,174.8) +2.7% Post & Parcel as a result of lower letter volumes, partly offset by Profit on operating activi
Slide 8: FY2019/20 expenses
FY2019/20 expenses YoY S$M FY18/19 FY19/20 % change Largely in line with 5.9% growth in Volume-related (679.2) (710.5) +4.6% International Post and Parcel revenue Admin, selling-related & others (144.8) (113.9) (21.3%) Following adoption of SFRS(I) 16 Leases, • reduction of rental costs (under Admin
Slide 9: FY19/20 segment revenue and POA (Continuing operations)
FY19/20 segment revenue and POA (Continuing operations) S$M Revenue 1,323.3 1,313.8 Profit on Property 121.5 121.1 0.3% operating activities 182.5 143.6 Property 53.7 Logistics 504.9 501.2 0.7% 53.7 Stable Post and Parcel 165.9 127.5 23.2% Post and Parcel 764.8 763.1 0.2% (7.6) (5.6) 27.0% Logistics
Slide 10: Cash flow & Balance sheet
Cash flow & Balance sheet 9
Slide 11: Free cash flow
Free cash flow S$M FY18/19 FY19/20 Higher cash flow before working Operating cash flow before working capital changes 186.8 194.6 capital changes Changes in working capital (3.3) 24.8 Improved working capital, with Income tax paid (31.3) (36.3) positive movement in payables for international postal
Slide 12: Financial indicators
Financial indicators As at As at S$M Financial indicators Mar 2019 Mar 2020 Higher cash as a result of cash from operations as well as net Cash & cash equivalents at end of financial period 392.2 493.0 proceeds from a bank term loan Greater flexibility in managing Borrowings 290.9 364.4 any uncertai
Slide 13: 60% payout ratio for FY2019/20
60% payout ratio for FY2019/20 Dividend per share The outlook remains challenging and highly uncertain due to the ongoing Covid-19 situation, S¢ 3.5 and the Group needs to adopt a prudent approach in managing cash flows. 2.7 Proposed final For the financial year ended 31 March 2020, the dividend of
Slide 14: Segmental results
Segmental results 13
Slide 15: Post and Parcel
Post and Parcel Q4 Q4 YoY % YoY % S$M Post and Parcel FY18/19 FY19/20 change FY18/19 FY19/20 change Revenue 188.8 178.2 (5.7%) 764.8 763.1 (0.2%) Domestic1 68.4 57.9 (15.4%) 280.9 250.6 (10.8%) International 120.4 120.2 (0.1%) 483.8 512.4 +5.9% Profit on operating activities 34.4 18.0 (47.7%) 165.9
Slide 16: Logistics
Logistics Q4 Q4 YoY % YoY % S$M Logistics FY18/19 FY19/20 FY18/19 FY19/20 change change Revenue 117.9 124.1 +5.3% 504.9 501.2 (0.7%) eCommerce logistics1 56.5 63.9 +13.2% 249.8 255.0 +2.1% Freight forwarding2 61.4 60.1 (2.0%) 255.2 246.2 (3.5%) Profit on operating activities (6.4) (2.2) +65.6% (7.6)
Slide 17: Property
Property Q4 Q4 YoY % YoY % S$M Property FY18/19 FY19/20 FY18/19 FY19/20 change change Revenue 30.4 30.4 +0.1% 121.5 121.1 (0.3%) Profit on operating activities 13.3 13.2 (0.8%) 53.7 53.7 +0.0% Margin 43.7% 43.3% 44.2% 44.3% Property segment revenue, which comprises commercial property rental and the
Slide 18: Outlook
SINGPQST CENTRI
Slide 19: Outlook: Post and Parcel
Outlook Post and Parcel In FY19/20, the Post and Parcel segment contributed 56% of Group revenue. Post and Parcel operations, comprising Domestic and International businesses, are largely expected to continue given the Essential Service nature of the business. The segment is well-poised to capitalis
Slide 20: Outlook: Logistics and Property
Outlook Logistics In FY19/20, the Logistics segment contributed 38% of Group revenue. As the Logistics segment is highly dependent on volumes and revenue, business might be further impacted by lower overall demand from an economic slowdown in the Asia-Pacific region. To mitigate this, the Group will
Slide 21: Outlook: Overall
Outlook Overall The Outlook remains uncertain, with the Group’s performance being affected by factors beyond its control surrounding the global Covid-19 situation. The duration and extent of control measures undertaken by the Singapore Government – and that of other countries – will impact the globa
Slide 22: Longer term focus
Longer term focus While the Group continues to face headwinds in its postal business with declining letter volumes, there are also opportunities arising from the strong growth of eCommerce logistics, in particular in the Asia Pacific region. Part of this long-term strategy is the fundamental review
Slide 23: Thank You
Thank You 22
Slide 24: Supplementary information
Supplementary information 23
Slide 25: Impact on adoption of SFRS(I) 16
Impact on adoption of SFRS(I) 16 Following adoption of SFRS(I) 16 Leases, there is • reduction of rental costs (under Admin & others) • increase in depreciation costs (under D&A) • and an additional cost of financing (under Finance expenses) Impact on adoption of SFRS(I) 16 Q4 FY19/20 FY19/20 Admin
Slide 26: Underlying Net Profit Reconciliation Table
Underlying Net Profit Reconciliation Table Q4 Q4 S$’000 FY18/19 FY19/20 FY18/19 FY19/20 Profit attributable to equity holders (75,108) 7,174 18,958 91,078 Exceptional items from continuing operations (15,023) 9,396 (37,942) 9,122 Additional provision for contingent consideration of a foreign subsidi