Singapore Post Ltd. · SGX:S08
Singapore Post — FY2021/22 Earnings Presentation
35 slides from Singapore Post's earnings presentation, May 13, 2022
Slide 1: FY2021/22 Group Overview
FY2021/22 Group Overview Vincent Phang, Group CEO 13 May 2022
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: FY2021/22 in Review
FY2021/22 in Review Resilient FY21/22 performance Making every delivery count for people and planet amid the COVID-19 pandemic and structural decline in core mail business Adapting to COVID-19 and post-pandemic norm • Revenue +18.6% YoY • NP +74.5% YoY • Strong Growth in Logistics • Australia Acquis
Slide 4: Key Priorities Positioning for Growth
Key Priorities Positioning for Growth Building markets | Extending geography | Diversifying revenues Simplify business, Integrate and streamline Optimise capital focus on core purpose operations management Sustainability Our Purpose: Making Every Delivery Count for People and Planet 4
Slide 5: Advancing Sustainability Goals
Advancing Sustainability Goals Purpose Making Every Delivery Count for People and Planet Pillars Cherishing our Collaborative Culture of Planet Partnerships Trust Sustaining a liveable planet Transforming markets and Caring for and doing the right thing for future generations delivering value for ou
Slide 6: Group Strategic Pillars
Group Strategic Pillars Transformation Into A Leading Ecommerce Logistics Solutions Provider In Asia Pacific ( ») (~ > ( , ' AUSTRALIA SINGAPORE INTERNATIONAL Building Scale And Leveraging Infrastructure Re-engineering Assets Combining Capabilities & Technology To Connect Globally Establish a leader
Slide 7: Key Trends and Challenges
Key Trends and Challenges eCommerce growth Global supply chain Inflationary Focus on trends disruption pressures sustainability eCommerce growth Geopolitical tensions Oil price fluctuations and Greater interest and expected to continue impact on electricity and expectations on Pandemic lockdowns fue
Slide 8: eCommerce trends
eCommerce trends Extract from IMF Working Paper* ‘E-commerce during Covid: Stylized Facts from 47 Economies’, January 2022 eCommerce growth trends eCommerce growth expected to continue Post-pandemic “…most economies are now below their peak levels of online spend during the consumer spending will pa
Slide 9: Singapore: Year in Review
Singapore: Year in Review Continued improvement eCommerce uptick during pandemic seen slowing; in service quality long-term eCommerce growth trend remains positive Domestic eCommerce eComm Logistics vs Letter Mail Logistics Volume (Mil items) Change in Revenue (S$m) +24% $15 eCommerce Logistics Lett
Slide 10: Singapore: Leveraging Infrastructure & Technology
Singapore: Leveraging Infrastructure & Technology Leveraging Infrastructure & Technology Our network – POPStations, Parcel Santa, SAM, post offices Higher-value tracked services for better customer experience Cost efficiency, service quality and customer experience Investing in infrastructure: ▪ Pos
Slide 11: Australia: Year in Review
Australia: Year in Review $98 billion Australia integrated logistics industry market size (Source: Ibisworld) 5.6 mil 26.3 mil 1.9 mil kg 31.8 mil Consignments in FY21/22 Consignments in FY21/22 Cross-border & last-mile delivery volume Total consignments in FY21/22 by Group in FY21/22 (SingPost incr
Slide 12: Australia: Building Scale and Combining Capabilities
Australia: Building Scale and Combining Capabilities Integrating and Building Scale, Developing End-to-end Capabilities CROSS BORDER SHIPPING FREIGHT FORWARDING LAST MILE DELIVERY TRANSPORT TECH SOLUTIONS 17 150+ ~253k 4PL WAREHOUSE- Facilities Partner Footprint (sqm) FULFILLMENT carriers 22 >90% ~9
Slide 13: International: Year in Review
International: Year in Review Gradual recovery in International Post & Parcel (IPP) due to lag in air freight capacity pick-up IPP Outbound Volume 1 Average No. of Daily Departing Passenger Flights from Changi Airport Mil kg utilised by IPP -33% -16% -23% -25% 106 5.7 Freight Forwarding 73 3.8 4.0 4
Slide 14: International: Re-engineering Assets to Connect Globally
International: Re-engineering Assets to Connect Globally Integration of International Businesses International eCommerce Logistics eCommerce Logistics Access to Global Postal Network Cross Border & Last-mile network spanning 220 markets 13 markets (International Post Transportation, Warehousing / wi
Slide 15: FY2021/22 Financial Results
FY2021/22 Financial Results Vincent Yik, Group CFO 13 May 2022 Confidential
Slide 16: Group Performance – FY2021/22
Group Performance – FY2021/22 Improved full year performance despite Revenue challenging environment amid pandemic S$1,665.6m Supported by +18.6% YoY ▪ Acquisition of majority stake in Freight Management Holdings (FMH) Operating Profit ▪ Growth in freight forwarding and delivery volumes in Logistics
Slide 17: Group Performance – H2 FY21/22
Group Performance – H2 FY21/22 Revenue S$934.2m +34.0% YoY Higher H2 results due to FMH and Logistics growth Operating Profit Increased stake in FMH to 51% in November 2021 and S$61.0m divested GSC in December 2021 +54.2% YoY Continued growth in freight forwarding and delivery volumes in Logistics s
Slide 18: Revenue Split by Markets
Revenue Split by Markets Property & Others Singapore 7% 43% Australia (vs 59% Growing contributions from DPP in FY20/21) 28% 15% Australia and International (vs 18% in FY20/21) FY2021/22 businesses Revenue S$1,665.6m Shift in revenue contributions as the Group IPP continues transformation to become
Slide 19: Performance by Segment
Performance by Segment S$M Revenue Operating Profit 1,665.6 1,404.7 112.1 114.9 79.3 Property 115.4 52.9 998.5 Property 50.0 Logistics1 618.1 Logistics1 11.3 44.3 Post & Parcel 43.5 Post & Parcel 743.9 622.3 24.9 (9.9) Others 2 (25.4) Inter-segment elim. (72.7) (70.2) FY20/21 FY21/22 FY20/21 FY21/22
Slide 20: Post & Parcel
Post & Parcel Resilient performance Segment P&L, % H2 H2 % FY21/22 FY20/21 S$m change FY21/22 FY20/21 change despite challenges Revenue 622.3 743.9 (16.3%) 296.8 349.1 (15.0%) International Post & Parcel business International 375.3 496.5 (24.4%) 173.6 221.7 (21.7%) continues to be adversely affecte
Slide 21: Logistics
Logistics Strong performance in Segment P&L, FY21/22 FY20/21 % H2 H2 % S$m change FY21/22 FY20/21 change Logistics segment Revenue 998.5 618.1 61.6% 619.0 325.3 90.3% Continued growth in international Freight 478.2 281.9 69.6% 271.3 155.3 74.8% freight forwarding volumes forwarding Australia 412.7 2
Slide 22: FMH update
FMH update Expanding network and Continued growth and strengthening service good performance offerings with acquisitions Performed strongly since acquisition; S$178.7m Active and good track record of acquisitions; revenue contribution in period of consolidation acquired Formby Logistics, GKR Transpo
Slide 23: Property
Property Stable Property Segment P&L, % H2 H2 % FY21/22 FY20/21 S$m change FY21/22 FY20/21 change contributions despite challenging environment Revenue 114.9 115.4 (0.5%) 55.1 60.1 (8.2%) Property 98.5 93.8 5.0% 49.9 49.3 1.2% 100% and 93.5% occupancy at Self-storage 16.4 21.6 (24.0%) 5.2 10.7 (51.5
Slide 24: Capital Management
Capital Management Balance sheet optimisation Divest non-strategic assets and to support growth focus on core business Redeemed S$350m outstanding perpetual Divested self-storage business GSC for securities in March 2022 ~S$87m in December 2021 Undertook financing activities Proceeds redeployed towa
Slide 25: Financial Position
Financial Position Operating Cash Inflow Balance sheet optimisation S$89.5m New S$250m perpetual securities issued subsequent vs S$215.4m Working capital to financial year end in FY20/21 changes Higher coverage on improved EBITDA performance Investing Cash Outflow which offset higher finance expense
Slide 26: Proposed Dividend
Proposed Dividend Dividend per share Proposed final dividend of 1.3 cents per share, bringing total S¢ 1.8 dividend to 1.8 cents per share for FY2021/22 1.1 Proposed Represents 50% of FY2021/22 Underlying Net Profit, 1.3 Final compared to 40% last year Final 0.6 Interim 0.5 0.5 Interim FY20/21 FY21/
Slide 27: Outlook
Outlook Disruptions in global supply chain logistics; inflationary cost pressures Competitive pressures in eCommerce logistics market Focused on strategic initiatives to reposition ourselves for long term success, while remaining prudent in managing costs and liquidity Continually review asset portf
Slide 28: Supplementary Information
Supplementary Information
Slide 29: eCommerce logistics traffic in businesses
eCommerce logistics traffic in businesses Growth in eCommerce logistics volumes for Higher eCommerce logistics contribution in Singapore and Australia last-mile deliveries Domestic Post and Parcel in Singapore Singapore Australia International -25% +24% +7% 17.3 eCommerce 45.9 Non- logistics 37.1 26
Slide 30: Domestic Post & Parcel: Revenue, volume and service quality
Domestic Post & Parcel: Revenue, volume and service quality Revenue & volume trends for Post & Parcel service quality metrics have improved and Letters & Printed Papers met our internal target of 98% in FY21/22 Revenue -16% Postal SLA FY20/21 Postal SLA FY21/22 (S$m) 129 108 FY20/21 FY21/22 Volume -
Slide 31: Domestic Post & Parcel: eCommerce logistics
Domestic Post & Parcel: eCommerce logistics Revenue & volume trends for eCommerce logistics revenue as % of Total DPP eCommerce logistics (DPP) revenue (rolling 6 months) Revenue +24% 50% (S$m) 89.8 45% eCommerce growth may moderate 72.4 post-pandemic, however the long 40% term outlook remains posit
Slide 32: International Post & Parcel: Conveyance cost, volume
International Post & Parcel: Conveyance cost, volume Continued COVID-19 impact on air freight Lower revenue in FY21/22 due to capacity and conveyance costs in FY21/22 rationalisation of volumes to avoid losses Average No. of Daily Departing Passenger Flights from Changi Airport utilised by IPP IPP R
Slide 33: Property: SingPost Centre
Property: SingPost Centre SPC Footfall (Mil) Committed Occupancy -2% As at Mar 21 Sep 21 Dec 21 Mar 22 9.4 9.2 SPC Mall 94.1% 100% 100% 100% SPC Office/ Enrichment 96.6% 97.6% 95.7% 93.5% SPC Total1 95.9% 98.3% 97.0% 95.8% FY20/21 Footfall FY21/22 Others2 96.1% 98.4% 98.4% 98.4% Overall1 95.9% 98.3%
Slide 34: Property: Lease Expiry, Renewals
Property: Lease Expiry, Renewals Lease Expiries & Renewals FY21/22 (Expired Leases) FY21/22 (Renewed or Replaced) No. of NLA As % of No. of NLA As % of Renewal/ leases (‘000 sq ft) total NLA leases (‘000 sq ft) total NLA Replacement rate SPC Mall 41 50 29% 41 50 29% 100% SPC Office/ 19 87 21% 12 67
Slide 35: Thank You
y= [Pe 2})-O_ a