Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Singapore Press Holdings (SPH) — Shareholder Meeting (November 2020)
32 slides from Singapore Exchange's shareholder meeting presentation, Nov 27, 2020
Slide 1: 27 November 2020
27 NOVEMBER 2020
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 in SPH ("Shares"). The value of shares and the income derived from them may fall as well as rise. Shares are not obligations of, deposits in, or guaranteed
Slide 3: Outline
SPH OUTLINE Introduction FY 2020 Financial Highlights ¢ Segmental Highlights Business Segments ¢ Media, Telecommunications, Technology ¢ Retail ¢ PBSA ¢ Aged Care Strategy and Dividends
Slide 4: A Challenging Media Landscape
H A CHALLENGING MEDIA LANDSCAPE Period of rapid changes disrupting the media industry* ¢ Media print ad have been declining in Asia-Pacific * Print subscription is down as consumers increasingly move to digital * Digital ad revenue has been increasing SPH Board 's strategy to navigate the challengin
Slide 5: SPH in 2020: Some Highlights
SPH IN 2020: SOME HIGHLIGHTS 1) Transforming Media 2) Unlocked value (S$293m) from portfolio of investments and legacy assets * Digital circulation has exceeded print circulation Financial Investment * Integrated marketing solution: Cross- Year Divested selling of ads across multiple platforms with
Slide 6: SPH in 2020: Some Highlights
SPH IN 2020: SOME HIGHLIGHTS 3) Geographical diversification and growing recurring income through investments in defensive, cash-yielding assets undergirded by long-term secular trends * SPH REIT made maiden acquisitions in Singapore and Australia worth over S$875m since FY2018 * Ontrack to become s
Slide 7: EEEEEE
TH TE EEEEEE
Slide 8: Group FY2020 Financial Highlights
SPH GROUP FY2020 FINANCIAL HIGHLIGHTS FY2020 FY2019 Change | Net loss of S$83.7m after taking in S$'000 S$'000 % S$$232.0m non-cash FV loss on Operating revenue 865,662 959,255 (9.8) investment properties Total costs (844,402) (790,747) 6.8 * Despite Covid-19 impact, operating Operating profit 110,2
Slide 9: Group FY2020 Segmental Highlights
GROUP FY2020 SEGMENTAL HIGHLIGHTS s¢'m 1,200 1,000 800 600 400 200 FY2019 Operating Revenue Media Property 7.4 Others incl. Aged Care, Exhibitions Increased revenue contribution from new acquisitions in Property mitigated decline in Media revenue 865.7. ° Mediarev. fell 22.8% y-o-y, led by 31.4% 93.
Slide 10: Significant Items Impacting PBT in FY2020
SPH SIGNIFICANT ITEMS IMPACTING PBT IN FY2020 i] 1| Breakdown of FV FV Change FV Change 1) Change on Investment (5$'m) (%) | _ Properties : Jobs Support Scheme '| Paragon (114.0) (ER:)) ! id- . ! Other Covid-19 related grants: Income | | The Clementi Mall (14.6) (2.4) I Gain on divestment of a prope
Slide 11: Group FY2020 Segmental Comparison
Ss -150 Profit Before Taxation (PBT) -66.1 298.3 21.3 Pe -338.8 FY2019 Media Others Property *Fair Value Change in Investment Properties for Retail and PBSA (excluding Aged Care) GROUP FY2020 SEGMENTAL COMPARISON Comparison with FY2019 Media loss of S$11.4m, mainly due to one-off retrenchment costs
Slide 12: Media, Telecommunications, Technology
MEDIA TELECOMMUNICATIONS TECHNOLOGY ) THE STRAITS TIMES NEWS TABLET |
Slide 13: Ad Revenue Severely Impacted in FY2020
SPH AD REVENUE SEVERELY IMPACTED IN FY2020 s$'m Annual Print Ad Revenue Display 400 Classified 350 Newspaper Ad 300 250 200 150 100 50 ) 1 1 1 FY2017 FY2018 FY2019 FY2020 s$im Annual Digital Ad Revenue* 60 57 54 58.4 55.9 54.8 “ 45 4 ; ; ; FY2017 FY2018 FY2019 FY2020 Newspaper Print Ad down worldwid
Slide 14: Total Digital Revenue Registered Growth of 11.8%
SPH TOTAL DIGITAL REVENUE REGISTERED GROWTH OF 11.8% S$'m Annual Digital Revenue* 120 9.1% CAGR 110 - 100 ~ 90 - 118.3 105.8 60 FY2017 FY2018 FY2019 FY2020 “Total digital revenue from circulation, ads, online classifieds, magazines and other digital portals (excluding Shareinvestor) 9.1% CAGR since
Slide 15: Digital Transformation Efforts for FY2020
SPH DIGITAL TRANSFORMATION EFFORTS FOR FY2020 News Tablet campaign delivers best features of the print product toa digital platform with subscriptions hitting 40k, up 300% y-o-y ‘THE BUSINESS TIMES NEWS TABLET EDITION Read print the new way. 7, i: i out * Straits Times, Berita Harian, Tamil Murasu a
Slide 16: Improving Data Analytics in FY2020
SPH IMPROVING DATA ANALYTICS IN FY2020 et untenites accavt tea teres ot $0 88/month Ramping up analytics and machine learning capabilities * Subscription propensity: Built model to identify and serve promotions to readers with highest likelihood to subscribe - resulted in 3x higher conversion rate t
Slide 17: New Initiatives in the Pipeline
SPH NEW INITIATIVES IN THE PIPELINE New subscription e-shop launched * Provides more personalisation for promotions and enhanced subscriber self-service option Revamp of Straits Times * Across all platforms: print, website and app New Content Management System (CMS) for newsrooms/magazines * Browser
Slide 18: Focus on Quality Journalism to Improve Readers' Engagement
SPH FOCUS ON QUALITY JOURNALISM TO IMPROVE READERS’ ENGAGEMENT SPH was the biggest winner at Asian Media Awards 2020, 30 June 2020 * The Straits Times won 5 awards, recognised for impactful editorial content as well as its infographics and photos * Chinese Media Group won 3 awards in two categories:
Slide 19: Stronger Performance by Digital Portfolio
STRONGER PERFORMANCE BY DIGITAL PORTFOLIO scCARMART.Co TA LY PLACE FOR SWART UR BUY FASTIOBS N ( U sgCarMart grew steadily with y-o-y profit growth of 17% in FY2020 * sgCarMart's car selling auction service Quotz set a new record for number of cars transacted despite Covid-19 Jobs portal for blue co
Slide 20: Retail
RETAIL
Slide 21: Severe Impact on Retailers Due to Covid-19 Pandemic
SPH SEVERE IMPACT ON RETAILERS DUE TO COVID-19 PANDEMIC Westfield Marion Shopping Centre Sustained expansion for SPH REIT with second asset in Australia * Acquired 50% stake in Westfield Marion for A$670m in Dec 2019 SPH REIT’s 2H2020 performance greatly impacted by Covid-19 ° NPI grew by 1.2% y-o-y
Slide 22: Sales Improving for Woodleigh Residences
SALES IMPROVING FOR WOODLEIGH RESIDENCES Woodleigh Residences was one of the top 5 best selling condominium projects in Aug 2020 * Asat20 Nov 2020, approx. 60% of total units have been sold at an average price of S$1,908 * Sales have been encouraging with over 190 units sold since the lifting of Cir
Slide 23: PBSA
PBSA )
Slide 24: Operationalising Key Operating Capabilities in PBSA
SPH OPERATIONALISING KEY OPERATING CAPABILITIES IN PBSA On track to become sizeable PBSA owner-operator with 7,723 beds across 28 assets in UK and Germany worth over S$1.4bn WAKE LT GREAT WAKE LT WORK WAKE IT MATTER MAKE IT UST MAKE IT SIMPLE WAKE LT (MPORTANT MAKEIT POWERFUL * Scaled up with 2 dist
Slide 25: UK Universities Welcome AY20/21 on Cautious Note
SPH UK UNIVERSITIES WELCOME AY20/21 ON CAUTIOUS NOTE Student Castle Durham Reception and Check-In Area Student Castle Oxford (Now Open for AY20/21) UK Universities commenced AY20/21 but remain watchful over second wave of Covid-19 ¢ Major universities have opened in Sep 2020 with blended teaching ap
Slide 26: Aged Care
Aged Care 26
Slide 27: Improved Operating Performance and Cautious Expansion
SPH IMPROVED OPERATING PERFORMANCE AND CAUTIOUS EXPANSION Common area in: Japan Aged Care asset Aged Care revenue improved by S$26.3m (93.6% y-o-y) in FY2020 * Boosted by sale of Personal Protective Equipment at Life Medic Operations stable for OV assets * OV Changi Care Village reopened on 21 Sep 2
Slide 28: Legacy Assets: Recycle Capital for Higher Yields
LEGACY ASSETS: RECYCLE CAPITAL FOR HIGHER YIELDS Media Centre at Genting Lane recycled to maximise economic returns and improve return on capital * 40:60 JV between SPH's Times Properties and Keppel Data Centres Holding to develop data centre facilities * Partner a seasoned player in the industry wi
Slide 29: 29
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Slide 30: Strategy: Digitalise Media & Seek New Recurring Income
SPH STRATEGY: DIGITALISE MEDIA & SEEK NEW RECURRING INCOME = Xe} = Pa) ~ oO a i = 5) [=) Property Aged Care Invest in transformation of Media business and change the way we sell advertising Increase recurring income from the Property segments, complemented by growth in Digital and Aged Care Manage c
Slide 31: Final Dividend - Prudent to Conserve Cash
SPH FINAL DIVIDEND - PRUDENT TO CONSERVE CASH Sustainable dividend payout from operating profit The Board has declared a final dividend of 1 cent per share Full year dividend distribution of 2.5 cents per share (Including interim dividend of 1.5 cents) SPH has returned $$8.9 billion in the form of d
Slide 32: Thank You
THANK YOU Visit www.sph.com.sg for more information ch
Singapore Press Holdings (SPH) — Shareholder Meeting (November 2020) on 6ix