Singapore Post Ltd. · SGX:S08
Singapore Post — FY2017/18 Earnings Presentation
28 slides from Singapore Post's earnings presentation, May 11, 2018
Slide 1: Financial Results for Q4 & FY ended 31 March 2018
Financial Results for Q4 & FY ended 31 March 2018 11 May 2018
Slide 2: Agenda
Agenda FY2017/18 & Q4 Financials Cash flow and Balance sheet Segmental results Business & corporate updates Summary 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
Slide 3: FY2017/18 Profit & Loss
FY2017/18 Profit & Loss FY2017/18 P&L, $M YoY FY17/18 FY16/17 % change Revenue 1,464.1 1,347.8 +8.6% Revenue growth driven by higher eCommerce-related activities Other income and gains (net) Rental and property-related income 47.5 36.6 +29.9% Boosted by rental income from Miscellaneous 11.3 9.8 +16.
Slide 4: Revenue movement
Revenue movement FY2016/17 vs. FY2017/18 Revenue performance, $M +8.6% 1,464.1 1,347.8 Stable despite the loss of two major customers as 265.6 (0.3%) previously disclosed, as TradeGlobal added new 266.3 customers over the year eCommerce Increased last-mile deliveries across Singapore and 663.9 +4.3%
Slide 5: Operating expenses
Operating expenses Total expenses FY2017/18 breakdown, $M FY17/18 FY16/17 YoY % change Labour & related1 328.2 328.6 (0.1%) largely stable due to cost management initiatives Volume-related1 816.1 704.5 +15.8% higher International mail terminal Traffic & related 490.3 374.1 +31.1% dues and air convey
Slide 6: Operating Profit before exceptional items
Operating Profit before exceptional items FY2016/17 vs. FY2017/18 Operating Profit performance, $M -2.4% 147.0 143.5 Property 31.1 Boosted by rental income from SingPost Centre +16.8% retail mall, which opened in October 2017 36.3 Logistics 23.6 10.4 (56.0%) Due to lower contribution from Quantium S
Slide 7: FY2017/18 Underlying Net Profit movement
FY2017/18 Underlying Net Profit movement Underlying Net Profit performance, $M Postal eCommerce Associates operating operating Property & JVs profit Logistics performance Others1 5.2 1.9 operating 6.1 17.1 profit Largely net 6.5 13.2 finance expense 115.6 and tax 5.2 105.0 -9.2% FY16/17 FY16/17 eCom
Slide 8: Q4 FY2017/18 Profit & Loss
Q4 FY2017/18 Profit & Loss Q4 FY2017/18 P&L, $M YoY Q4 FY17/18 Q4 FY16/17 % change Revenue 367.5 323.8 +13.5% Revenue growth across all three segments driven by higher Other income and gains (net) eCommerce-related activities Rental and property-related income 13.9 8.8 +58.1% Rental income from Sing
Slide 9: Operating Profit before exceptional items
Operating Profit before exceptional items Q4 FY2016/17 vs. Q4 FY2017/18 Operating Profit performance, $M +18.0% 31.4 26.6 Property 5.8 11.6 +101.8% Rental income from SingPost Centre retail mall Logistics 2.6 5.3 +108.7% Increased last-mile deliveries in Singapore and Australia, higher freight forwa
Slide 10: Q4 Underlying Net Profit movement
Q4 Underlying Net Profit movement Underlying Net Profit performance, $M Logistics Postal operating operating eCommerce profit profit Associates Property operating 2.8 3.6 & JVs 5.9 4.3 performance Others1 9.3 9.5 Largely tax 2 21.4 6.7 15.3 -28.6% Q4 Q4 FY16/17 eCommerce Property Logistics Postal As
Slide 11: Agenda
Agenda FY2017/18 & Q4 Financials Cash flow and Balance sheet Segmental results Business & corporate updates Summary 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
Slide 12: Cash Flow movement
Cash Flow movement $M, unless otherwise stated FY17/18 FY16/17 Net cash provided by operating activities 198.2 200.1 Stable operating cash flow Operating cash flow before working capital changes 196.2 196.9 Changes in working capital 33.3 33.7 Lower capital expenditure with the Income tax paid (31.2
Slide 13: Balance Sheet and financial indicators
Balance Sheet and financial indicators $M, unless otherwise stated As at As at Financial indicators Mar 2018 Mar 2017 Includes cash proceeds from Alibaba to be used in accordance with the Cash & cash equivalents at end of financial period 314.1 366.6 investment agreements Borrowings 244.0 364.0 Lowe
Slide 14: Agenda
Agenda FY2017/18 & Q4 Financials Cash flow and Balance sheet Segmental results Business & corporate updates Summary 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
Slide 15: Postal: FY2017/18 Performance
Postal: FY2017/18 Performance $M Postal FY17/18 FY16/17 YoY % change Revenue rose 15.0% for the full year with strong growth in International Revenue 625.9 544.1 +15.0% mail revenue, driven by higher cross- border eCommerce deliveries. Operating profit 144.6 150.7 (4.0%) This helped offset the decli
Slide 16: Postal: Q4 FY2017/18 Performance
Postal: Q4 FY2017/18 Performance $M Postal Q4 FY17/18 Q4 FY16/17 YoY % change Despite the new terminal dues system taking effect, International Revenue 161.7 136.8 +18.2% mail revenue rose 38.8%. Operating profit 33.2 36.8 (9.8%) Margins for International mail was impacted as the industry went OP ma
Slide 17: Logistics: FY2017/18 Performance
Logistics: FY2017/18 Performance $M Logistics FY17/18 FY16/17 YoY % change Revenue increased 4.3% for the full year, driven by higher last-mile Revenue 663.9 636.8 +4.3% eCommerce delivery volumes in Singapore and Australia for SP Parcels Operating profit 10.4 23.6 (56.0%) and Couriers Please respec
Slide 18: Logistics: Q4 FY2017/18 Performance
Logistics: Q4 FY2017/18 Performance $M Logistics Q4 FY17/18 Q4 FY16/17 YoY % change Logistics revenue increased 2.0% in Q4, driven by SP Parcels and Famous. Revenue 157.9 154.7 +2.0% Operating profit rose 108.7%, which Operating profit 5.3 2.6 +108.7% reflects improved contributions from our last-mi
Slide 19: eCommerce: FY2017/18 Performance
eCommerce: FY2017/18 Performance $M eCommerce FY17/18 FY16/17 YoY % change The US businesses’ performance improved as management executed on Revenue 265.6 266.3 (0.3%) the turnaround business plan for TradeGlobal, which grew revenue and demonstrated good cost controls, in Operating profit (16.7) (33
Slide 20: eCommerce: Q4 FY2017/18 Performance
eCommerce: Q4 FY2017/18 Performance $M eCommerce Q4 FY17/18 Q4 FY16/17 YoY % change eCommerce revenue rose 15.7% in Q4. Revenue 65.3 56.4 +15.7% Despite the loss of two major customers as disclosed last year, Operating profit (5.8) (15.1) +61.3% TradeGlobal registered revenue growth of 38.5% in Q4 t
Slide 21: Agenda
Agenda FY2017/18 & Q4 Financials Cash flow and Balance sheet Segmental results Business & corporate updates Summary 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
Slide 22: eCommerce-related revenue
eCommerce-related revenue Revenue performance, Q4 FY2016/17 vs Q4 FY2017/18, $M eCommerce-related revenue rose 27.0% year-on-year, forming 56.8% of Group revenue Group Revenue 323.8 367.5 56.8% 50.8% 208.7 eCommerce 164.3 related +27.0% Non eCommerce 159.4 158.9 related Q4 FY16/17 Q4 FY17/18 Differe
Slide 23: Key operating indicators
Key operating indicators Regional eCommerce Logistics Hub SingPost Centre retail mall Warehousing Parcel sorting 96%1 Committed Utilisation Utilisation 21%2 95.6%1 occupancy 1. As at 31 March 2018 2. Average daily utilisation for the quarter ended 31 March 2018, based on handling capacity of 100,000
Slide 24: Proposed final dividend for FY2017/18: 2.0 cents
Proposed final dividend for FY2017/18: 2.0 cents Dividend, FY2016/17 vs FY2017/18, S$ cents Total dividend 3.5 3.5 Final 0.5 2.01 Interim 3.0 1.5 FY16/17 FY17/18 Payout ratio as % of underlying net profit 66% 76% Dividend policy is based on a payout ratio ranging from 60% to 80% of underlying net pr
Slide 25: Agenda
Agenda FY2017/18 & Q4 Financials Cash flow and Balance sheet Segmental results Business & corporate updates Summary 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
Slide 26: FY2017/18 Summary
FY2017/18 Summary Revenue rose 8.6%, driven by eCommerce-related activities Net profit up 278.4% due to exceptional losses in the same period last year Underlying net profit declined 9.2% largely due to: • lower operating profit from the Logistics segment Cash flow and balance sheet position: • free
Slide 27: Key themes of our strategy
Key themes of our strategy SingPost - connecting communities in an eCommerce world A Win in our home B Ignite future growth C Extract full value market engines from investments • Gain leading share in Parcels • Drive Southeast Asia with end- • Maximise value from • Drive scale of eCommerce to-end ca
Slide 28: Thank you
Thank you