Singapore Post Ltd. · SGX:S08
Singapore Post — FY2015/16 Earnings Presentation
28 slides from Singapore Post's earnings presentation, May 10, 2016
Slide 1: Q4 & FY2015/16 Financial Results
Q4 & FY2015/16 Financial Results 10 May 2016
Slide 2: Agenda
Agenda Overview & FY2015/16 Financials eCommerce-Related Revenues Segmental Results Business Update Summary & Outlook The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future periods, compared to t
Slide 3: FY2015/16: Record net profit, annual revenue crosses S$1 billion
FY2015/16: Record net profit, annual revenue crosses S$1 billion FY2015/16 P&L, $M FY15/16 FY14/15 YoY % change Revenue 1,151.5 919.6 +25.2% Annual revenue crosses S$1 billion mark, driven by eCommerce related Rental and property-related income 39.4 43.9 (10.3%) growth as well as acquisitions Miscel
Slide 4: Q4 FY2015/16: eCommerce related activities contribute to strong revenue growth
Q4 FY2015/16: eCommerce related activities contribute to strong revenue growth Q4 FY2015/16 P&L, $M Q4 FY15/16 Q4 FY14/15 YoY % change Revenue 317.6 248.7 +27.7% Revenue growth boosted by growth in eCommerce related activities, as well Rental and property-related income 9.5 10.9 (12.8%) as consolida
Slide 5: Revenue crosses S$1 billion, driven by eCommerce related activities and acquisitions
Revenue crosses S$1 billion, driven by eCommerce related activities and acquisitions FY2014/15 vs. FY2015/16 Revenue performance, $M +25.2% 1,151.5 Largely due to US acquisitions 160.7 +74.6% - TradeGlobal & Jagged Peak1 919.6 Retail & eCommerce 92.0 Driven by rise in eCommerce Logistics Logistics 6
Slide 6: Increased expenses with growth in business volumes and change in business mix
Increased expenses with growth in business volumes and change in business mix Total expenses FY2015/16 breakdown, $M FY15/16 FY14/15 YoY % change Labour & related 300.4 263.1 +14.2% Due to higher volumes and change in Volume-related 535.4 366.5 +46.1% business mix Admin & others 145.8 111.4 +30.9% D
Slide 7: Operating Profit (excluding one-off items) declined marginally year-on-year
Operating Profit (excluding one-off items) declined marginally year-on-year FY2014/15 vs. FY2015/16 Operating profit performance, excluding one-off items, $M -1.1% 191.1 188.9 Retail & eCommerce 9.7 2.5 eCommerce Due to increased volumes from development 32.6 40.2 Logistics of the eCommerce Logistic
Slide 8: Balance sheet & financial indicators
Balance sheet & financial indicators $M, unless otherwise stated FY15/16 FY14/15 Resilient operating cash flows Operating Cash Flow (before working capital changes) 202.0 215.1 Due mainly to higher receivables from Changes in working capital (40.0) 55.4 growth in international volumes and a one-off
Slide 9: Agenda
Agenda Overview & FY2015/16 Financials eCommerce-Related Revenues Segmental Results Business Update Summary & Outlook The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future periods, compared to t
Slide 10: eCommerce related revenues rose 60.4% year-on-year to S$412m
eCommerce related revenues rose 60.4% year-on-year to S$412m Revenue FY2013/14 – FY2015/16, $M 1,151.5 919.6 Retail & eCommerce Group Revenue 821.1 $98.4M 739.1 662.4 24% Mail 604.9 Non-eCommerce related 35.8% eCommerce 40% $165.2M related revenues 28.0% $412.4M 26.3% 412.4 Logistics 36% eCommerce r
Slide 11: Overseas revenue now 43.9% of Group revenue
Overseas revenue now 43.9% of Group revenue Group revenue footprint FY2013/14 – FY2015/16 1,151.5 Group Revenue 919.6 821.1 646.1 620.8 Domestic 592.7 43.9% 27.8% 32.5% 505.5 Overseas 298.8 228.4 FY13/14 FY14/15 FY15/16 Differences in total due to rounding 10
Slide 12: Agenda
Agenda Overview & FY2015/16 Financials eCommerce-Related Revenues Segmental Results Business Update Summary & Outlook The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future periods, compared to t
Slide 13: Mail: Q4 FY2015/16 Performance
Mail: Q4 FY2015/16 Performance $M Mail Q4 FY15/16 Q4 FY14/15 YoY % change Revenue 127.5 123.5 +3.3% Mail revenue rose 3.3% despite cessation of revenues from the Operating profit 35.1 36.9 (5.0%) divestment of Novation Solutions in Q1 and DataPost in Q2 OP margin 27.5% 29.9% Excluding impact of dive
Slide 14: Mail: FY2015/16 Performance
Mail: FY2015/16 Performance $M Mail FY15/16 FY14/15 YoY % change Revenue 499.8 500.3 0.1% Operating profit 147.8 144.0 2.6% OP margin 29.6% 28.8% Revenue breakdown FY15/16 FY14/15 YoY % change Domestic mail 255.4 248.7 +2.7% International mail 228.8 205.6 +11.3% Hybrid mail1 11.3 42.4 (73.4%) Philat
Slide 15: Logistics: Q4 FY2015/16 Performance
Logistics: Q4 FY2015/16 Performance $M Logistics Q4 FY15/16 Q4 FY14/15 YoY % change Revenue 167.6 136.3 +23.0% Strong revenue growth driven by higher contributions from eCommerce Operating profit 11.6 5.0 +132.9% logistics related activities and inclusion of new subsidiaries OP margin 6.9% 3.6% Oper
Slide 16: Logistics: FY2015/16 Performance
Logistics: FY2015/16 Performance $M Logistics FY15/16 FY14/15 YoY % change Revenue 626.0 464.8 +34.7% Operating profit 37.7 21.5 +75.0% OP margin 6.0% 4.6% Revenue breakdown FY15/16 FY14/15 YoY % change Quantium Solutions 297.0 202.9 +46.4% Famous 229.4 167.9 +36.6% Others 99.5 94.0 +5.9% Total 626.
Slide 17: Retail & eCommerce: 4Q FY2015/16 Performance
Retail & eCommerce: 4Q FY2015/16 Performance $M Retail & eCommerce Q4 FY15/16 Q4 FY14/15 YoY % change Revenue 58.1 24.0 +142.3% Revenue growth driven by TradeGlobal and Jagged Peak Operating profit (3.2) 2.5 N.M. Operating Profit was impacted by OP margin (5.5%) 10.4% lower contributions from agency
Slide 18: Retail & eCommerce: FY2015/16 Performance
Retail & eCommerce: FY2015/16 Performance $M Retail & eCommerce FY15/16 FY14/15 YoY % change Revenue 160.7 92.0 +74.6% Operating profit 2.2 9.7 (76.9%) OP margin 1.4% 10.6% Revenue breakdown FY15/16 FY14/15 YoY % change eCommerce1 98.4 26.8 +267.0% Financial services 21.4 23.4 (8.6%) Agency services
Slide 19: Agenda
Agenda Overview & FY2015/16 Financials eCommerce-Related Revenues Segmental Results Business Update Summary & Outlook The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future periods, compared to t
Slide 20: Key developments in FY2015/16
Key developments in FY2015/16 Building a global Enhancing infrastructure Strengthening eCommerce eCommerce ecosystem & capabilities Logistics network & partnerships GROSS Volumes are growing; MERCHANDISE VALUE awarded best Logistics Partner under Alibaba’s Cainiao network >US$4b ANNUALLY Strengtheni
Slide 21: Post-Merger Integration Case Study: Ironman extends supply chain via Jagged Peak
Post-Merger Integration Case Study: Ironman® extends supply chain and distribution into Asia Pacific via Jagged Peak End-to-end eCommerce logistics in Australia • Front-end (FlexNet and EDGE Order Management systems based on Jagged Peak) • Warehousing (Quantium Solutions) • Last mile delivery (Couri
Slide 22: Updates on Corporate matters
Updates on Corporate matters Special Audit Voluntarily commissioned by SingPost; report was released on 3 May 2016 Recommendations of Special Audit will be implemented together with, and as part of, the broader Corporate Governance Review Corporate To review process for assessment of independence of
Slide 23: eCommerce Logistics Network Development
eCommerce Logistics Network Development eCommerce Warehousing & Last Mile Delivery & Freight, Customs & Services Fulfilment Returns Regulations Management eCommerce Logistics & Operations Postal International mail Marcelo Wesseler Sascha Hower Woo Keng Leong Goh Hui Ling CEO, Group COO, CEO, Deputy
Slide 24: Agenda
Agenda Overview & FY2015/16 Financials eCommerce-Related Revenues Segmental Results Business Update Summary & Outlook The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future periods, compared to t
Slide 25: FY2015/16 Performance
FY2015/16 Performance Successful ongoing transformation delivers good performance for FY2015/16 Group revenue crossed S$1 billion, up 25.2% year-on-year Achieved record full year Net Profit of S$248.9 million Continued eCommerce growth momentum eCommerce related revenues rose 60% to S$412 million eC
Slide 26: FY2016/17 Outlook
FY2016/17 Outlook While the Group continues to face pressures of declining letter mails in the traditional postal business, it is making good progress on its transformation into a global eCommerce Logistics player. The acquisitions of TradeGlobal and Jagged Peak in the US enabled SingPost to expand
Slide 27: FY2016/17 Outlook (continued)
FY2016/17 Outlook (continued) The ongoing development of SPC Retail Mall is progressing well and is expected to be completed by mid-2017. The Regional eCommerce Logistics Hub has obtained TOP in April 2016 and is expected to be operational by July 2016. As the Group progresses with its transformatio
Slide 28: Thank you
Thank you