Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Singapore Press Holdings — FY2017 Earnings Presentation
19 slides from Singapore Exchange's earnings presentation, Oct 11, 2017
Slide 1: FY2017 Financial Results
FY2017 Financial Results October 11, 2017
Slide 2: Group FY2017 financial highlights
Group FY2017 financial highlights FY2017 FY2016 Change S$’000 S$’000 % Operating revenue 1,032,515 1,124,349 (8.2) Operating profit# 205,448 305,169 (32.7) Fair value change on investment properties 57,386 11,823 NM Investment income 53,865 51,753 4.1 Gain on divestment of a joint venture 149,690 -
Slide 3: Group FY2017 financial highlights
Group FY2017 financial highlights FY2017 FY2016 Change Operating Revenue S$’000 S$’000 % Media 725,427 834,221 (13.0) Property 244,159 241,310 1.2 Others 62,929 48,818 28.9 1,032,515 1,124,349 (8.2) Media • Advertisement revenue declined S$102.5m (16.9%) • Circulation revenue decreased S$8.7m (5.1%)
Slide 4: Group FY2017 financial highlights
Group FY2017 financial highlights FY2017 FY2016 Change Profit/(Loss) before taxation S$’000 S$’000 % Media 114,472 197,352 (42.0) Property 162,971 149,586 8.9 Treasury and Investment 47,038 48,833 (3.7) Others (4,041) (18,195) (77.8) 320,440 377,576 (15.1) Gain on divestment of a joint venture 149,6
Slide 5: Group FY2017 highlights
Group FY2017 highlights Operating Revenue Composition Media (S$1,032.5m) Advertisement Revenue Composition (S$504m) 11.8% 20.7% 23.6% 25.6% 53.7% 15.7% 48.9% Advertisements (Media) Display Circulation Classified* Rental & Services Magazines & Others Other revenue * Classified includes Recruitment an
Slide 6: Advertising market remained weak
Advertising market remained weak 5.0% Newspaper Ad Revenue Y-O-Y Change (%) 0.0% -5.0% -10.0% -12.5% -15.0% -15.0% -16.0% -16.6% -18.0% -17.9% -20.0% -18.5% -18.7% -18.6% -19.3% -18.4% -20.2% -21.5% -21.5% -21.6% -25.0% 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY2017 Display Classified* Newspaper Ad * Classi
Slide 7: Circulation maintained by digital
Circulation maintained by digital '000 Daily Average Newspaper Circulation 400 350 300 250 200 150 100 50 0 The Straits The Lianhe Lianhe Shin Min Berita Tamil Times/ The Business Zaobao Wanbao Daily News Harian/ Murasu/ Sunday Times Berita Tamil Times Minggu Murasu Sunday FY2017 (Print) FY2017 (Dig
Slide 8: Operating costs fell 4.1%
Operating costs fell 4.1% FY2017 Operating Expenditure* Cost Composition (S$786m) S$’m 4.0% 6.1% 17.5% 13.8% Newsprint 9.1 4.8% Staff costs 5.1 8.3% Premises costs# 4.7 45.5% Depreciation 6.9 Newsprint Other Materials, Production & Distribution Costs Other operating expenses 7.5 Staff Costs Premises
Slide 9: Staff costs contained
Staff costs contained Change FY2017 FY2016 % Headcount as at end-August^ 4,410 4,182 5.5 Staff Costs (S$'000) 357,464 362,551 (1.4) ^ Increase in headcount due to acquisition of Orange Valley Healthcare (457) Restructuring update • Oct 2016 : announced up to 10% headcount reduction over 2 years • Au
Slide 10: Newsprint prices expected to strengthen
Newsprint prices expected to strengthen Average Newsprint Charge-Out Price & US$ MT Monthly Consumption 525 7,500 500 7,000 486 486 487 484 475 6,500 6,367 450 6,000 5,769 5,835 5,714 425 5,500 400 5,000 1Q 2017 2Q 2017 3Q 2017 4Q 2017 LHS - Prices RHS - Avg Mthly Consumption 10
Slide 11: Good operating margins
Good operating margins S$'m Recurring Earnings and Operating Margin 450 45% 400 40% 350 35% 300 30% 250 25% 200 20% 150 15% 100 10% 50 5% 0 0% FY2013 FY2014 FY2015 FY2016 FY2017 Operating Profit^ Operating Margin^ ^ Excluding impairment charges on goodwill and intangibles, and property, plant and eq
Slide 12: Sustained Property performance
Sustained Property performance Paragon The Clementi Mall The Seletar Mall • Net Property Income (NPI) grew 4.9% to S$188.3m. • All 3 malls continue to provide recurrent income stream. • Market value for Paragon (freehold), The Clementi Mall and The Seletar Mall at S$2.85b, S$583m and S$490m respecti
Slide 13: Group investible fund
Group investible fund Group Investible Fund (S$1.1b) • Conservative stance maintained on investment allocation, focused on 19.3% 38.5% capital preservation • Returns are expected to be 37.6% 4.6% commensurate with low risk- return profile to mitigate against volatility Equities Bonds Investment Fund
Slide 14: Portfolio Investment Performance
Portfolio Investment Performance 4.3% annualised return since inception Period in years^ 5 5.5 1 6.5 ^ As at August 31, 2017 14
Slide 15: Declared dividend per share of 15 cents
Declared dividend per share of 15 cents 6 cents interim, 9 cents final (cents) 30 160.0% 145.7% 140.0% 25 107.8% 120.0% 109.1% 102.1% 96.2% 100.0% 20 80.0% 60.0% 15 21 22 20 18 15 40.0% 10 20.0% 2013^ 2014 2015 2016 2017 Interim & Final Div (LHS) Div Payout Ratio* (RHS) * Computed based on Group rec
Slide 16: Some initiatives to enhance capabilities
Some initiatives to enhance capabilities Investing in new Enabling new Expanding our capabilities growth product portfolio Digital Radio has Data performed analytics Extending well Radio international Launch of 2 Video reach of new radio Content flagship through stations in Marketing
Slide 17: Orange Valley at a Glance
Orange Valley at a Glance Top 3 nursing home operator (1) in Singapore 5 homes with 900 beds (not including Balestier) Changi Marsiling 120 beds 234 beds Retrofitted 600+ beds located in Purpose Built optimally sized purpose built facilities located on 30-year leasehold properties Remaining
Slide 18: Orange Valley awards and certifications
Orange Valley has Won a Range of Awards/Certifications in Recognition of its Clinical and Service Quality and Innovations ISO 9001-certified since Singapore Health Quality 2002 Service Award Successful re-certification of ISO:9001 Garnered 8 silver awards in 2016; 23 silver (Quality Management Syste
Slide 19: Thank you
Thank you Please visit www.sph.com.sg for more information.
Singapore Press Holdings — FY2017 Earnings Presentation on 6ix