Singapore Post Ltd. · SGX:S08
Singapore Post — FY2006/07 Earnings Presentation
41 slides from Singapore Post's earnings presentation, Apr 27, 2007
Slide 1: SGX Announcement: Presentation Slides for Q4 and FY2006/07 Results
MISCELLANEOUS Page 1 of 1 Print this page Miscellaneous * Asterisks denote mandatory information Name of Announcer * SINGAPORE POST LIMITED Company Registration No. 199201623M Announcement submitted on behalf of SINGAPORE POST LIMITED Announcement is submitted with SINGAPORE POST LIMITED respect to
Slide 2: Results Presentation Q4 & Full Year FY2006/07 Results
Singapore Post Limited Results Presentation Q4 & Full Year FY2006/07 Results 27 April 2007
Slide 3: Agenda
Agenda ♦ Strategic Overview ♦ Q4 FY2006/07 Results ♦ Quarterly Trends ♦ Full Year FY2006/07 Results ♦ Segment Results ♦ Cashflow, Dividends, Financial Indicators ♦ Summary The following presentation contains forward looking statements by the management of Singapore Post Limited ("SingPost"), relatin
Slide 4: Strategic Overview
Yours Aluays Strategic Overview
Slide 5: Business Overview: Key Initiatives in FY2006/07
Business Overview Key Initiatives in FY2006/07 Key Initiatives Description Mail ♦ Pos Indonesia – collaboration agreement - Collaborations with ♦ Korea Post and Japan Post – joint stamp issue posts ♦ Pos Malaysia – collaboration to promote cross border mail traffic - Hybrid mail ♦ DataPost set up in
Slide 6: Outlook for FY2007/08
Strategic Overview Outlook for FY2007/08 ♦ Positive economic outlook ♦ Basic mail services liberalised — SingPost designated as Public Postal Licensee — Well positioned to compete in a liberalised market ♦ Change in regulatory/operating landscape for unsecured lending — Opening of market for unsecur
Slide 7: FY2007/08: Focusing on Driving Growth
Strategic Overview FY2007/08: Focusing on Driving Growth ♦ Accelerating efforts to drive growth — Laid foundation and implemented initiatives for growth over last few years FY2006/07: — Focusing on increasing efforts to drive medium to long term Execution Excellence growth FY2005/06: ♦ Expanding reg
Slide 8: Q4 FY2006/07 Results
Yours Aluays Q4 FY2006/07 Results
Slide 9: Q4 FY06/07 Group Results
Q4 FY06/07 Group Results Revenue ♦ Good growth momentum in Q4, $M with revenue rising 7.3% or 7.3% 112.6 $7.6M 105.0 ♦ Improvements in profitability — EBITDA up 8.0% or $3.7M — Underlying net profit up 16.9% or $5.2M Q4 FY05/06 Q4 FY06/07 EBITDA Underlying Net Profit* $M $M 8.0% 16.9% 50.4 46.7 36.3
Slide 10: Q4 FY06/07 Segment Results
Q4 FY06/07 Segment Results Mail Revenue and Profit ♦ Strong segment results $M achieved for Q4 – continued 7.1% improvements in revenue and 87.8 82.0 operating profit by all business segments 7.1% 33.2 35.6 Q4 Q4 Q4 Q4 FY05/06 FY06/07 FY05/06 FY06/07 Logistics Revenue and Profit Retail Revenue and P
Slide 11: Q4 FY06/07 Operating Expenses
Q4 FY06/07 Operating Expenses ♦ Operating expenses remained Q4 Q4 ($M) Change under control FY05/06 FY06/07 ♦ Increase in volume related costs Operating expenses 71.8 76.0 +5.8% in tandem with business growth $0.6M 2.1% $2.1M 8.5% 30.3 $1.4M 27.0 8.2% 29.7 $M 24.9 18.7 17.3 Q4 FY05/06 Q4 FY06/07 Lab
Slide 12: Q4 FY06/07 Profit & Loss
Q4 FY06/07 Profit & Loss ♦ Good set of results recorded for final quarter of FY2006/07 ($M) Q4 FY05/06 Q4 FY06/07 B/(W) Revenue 105.0 112.6 7.3% Other income 5.1 5.6 9.9% Operating expenses (71.8) (76.0) (5.8%) Operating profit 38.3 42.3 10.5% Share of assoc & JVs 2.5 1.8 (30.7%) Net finance costs (
Slide 13: Quarterly Trends
Quarterly Trends Sours Aluays 11
Slide 14: Quarterly Trends
Quarterly Trends Revenue Growth Trend ♦ Continued momentum in $M 7.3% operational performance, with 8.5% 3.5% 3.5% 112.6 Q4 revenue exceeding 105.1 106.7 111.8 seasonally strong Q3 103.0 108.0 105.0 96.8 ♦ Strong improvements in Q4 EBITDA and underlying net profit performance Q1 Q2 Q3 Q4 Underlying
Slide 15: Quarterly Trends – Operating Leverage
Quarterly Trends – Operating Leverage ♦ Business growth over last two years with costs under control ♦ Maintained good operating leverage Revenue Growth vs Operating Expenses Growth 12.6% 11.3% 8.2% 8.5% 7.4% 9.3% 7.3% 7.6% 8.2% 4.7% 3.5% 3.5% 5.8% 3.7% 1.9% 2.1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY05/06 FY06
Slide 16: Quarterly Profit Margins
Quarterly Profit Margins ♦ Improvements in underlying Underlying Operating Profit Margins profit margins for most quarters 38.7% 37.5% ♦ Better underlying profit margins 37.8% 37.5% 37.1% 37.4% recorded for Q4 FY06/07 36.4% 35.4% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY05/06 FY06/07 Underlying EBITDA Margins Unde
Slide 17: Full Year FY2006/07 Results
Full Year FY2006/07 Results 15
Slide 18: FY06/07 Group Results
FY06/07 Group Results ♦ Good set of results achieved for Revenue FY2006/07 $M 5.6% 436.0 412.8 ♦ Continued improvements in revenue and profit performance — Revenue grew 5.6% or $23.2M — Underlying net profit grew 7.0% or $8.7M FY05/06 FY06/07 Underlying EBITDA* Underlying Net Profit* $M $M 4.5% 7.0%
Slide 19: FY06/07 Segment Results
FY06/07 Segment Results Mail Revenue and Profit ♦ Continued growth in revenue $M and operating profit achieved 4.4% by all business segments – 324.2 338.4 Mail, Logistics and Retail 4.6% 128.7 134.6 FY05/06 FY06/07 FY05/06 FY06/07 Logistics Revenue and Profit Retail Revenue and Profit $M $M Segment
Slide 20: FY06/07 Operating Expenses
FY06/07 Operating Expenses ♦ Cost increases continued to be controlled ($M) FY05/06 FY06/07 Change ♦ Total operating expenses rose Operating expenses 281.0 293.4 +4.4% by 4.4% or $12.4M $2.8M $8.1M 2.5% 8.4% 114.9 112.2 105.2 $1.5M 97.1 2.1% 71.8 73.3 $M FY05/06 FY06/07 Labour and related Volume rel
Slide 21: FY06/07 Profit & Loss
FY06/07 Profit & Loss ♦ Good full year results ($M) FY05/06 FY06/07 B/(W) Revenue 412.8 436.0 5.6% Other income 20.1 26.6 32.7% Operating expenses (281.0) (293.4) (4.4%) Operating profit 151.8 169.3 11.5% Share of assoc & JVs 8.3 6.6 (21.5%) Net finance costs (5.9) (9.4) (58.3%) Profit before tax 15
Slide 22: Performance Indicators
Performance Indicators ♦ Growth in business on the back Revenue per Employee of strategy of enhancing core $M 5.9% business and leveraging network CAG R 185 178 ♦ Maintained control over operating expenses; improved 165 productivity ♦ Good operating leverage FY04/05 FY05/06 FY06/07 Operating Expense
Slide 23: Segment Results
Segment Results Yours Aluays 21
Slide 24: Mail – Q4 FY06/07 Performance
Mail – Q4 FY06/07 Performance ♦ Mail revenue ↑ 7.1% or $5.8M against last year, on the back of improved performances by all business lines ♦ Mail profit ↑ 7.1% or $2.3M against last year ♦ Mail profit margin steady at 40.5% Mail Mail Revenue Mail Operating Profit Operating Profit Margin $M $M 87.8 8
Slide 25: Mail – Q4 FY06/07 Revenue Breakdown
Mail – Q4 FY06/07 Revenue Breakdown Q4 Q4 ($M) Change FY05/06 FY06/07 Mail Revenue 82.0 87.8 +7.1% Growth in direct mail volumes $3.4M Increase in 6.7% outgoing mail volumes 50.3 53.7 $2.1M Higher volumes 8.0% from new customers Growth in and new services MyStamp $M 26.1 28.2 $0.1M $0.2M 3.2% 13.9%
Slide 26: Mail – FY06/07 Performance
Mail – FY06/07 Performance ♦ Mail revenue ↑ 4.4% or $14.3M against last year, on growth in all four business lines – domestic mail, international mail, hybrid mail and philatelic ♦ Mail profit ↑ 4.6% or $5.9M against last year ♦ Slight improvement in mail profit margin from 39.7% to 39.8% Mail Mail
Slide 27: Mail – FY06/07 Revenue Breakdown
Mail – FY06/07 Revenue Breakdown ($M) FY05/06 FY06/07 Change Mail Revenue 324.2 338.4 +4.4% Growth in direct mail and mailroom contributions Continued efforts $6.8M to grow outgoing 3.4% mail business 198.0 204.9 $5.5M Boost from new 5.3% customers and Continued growth new services in MyStamp $M 104
Slide 28: Logistics – Q4 FY06/07 Performance
Logistics – Q4 FY06/07 Performance ♦ Logistics revenue ↑ 5.2% or $0.8M against last year ♦ Logistics profit ↑ 6.2% or $0.2M against last year ♦ Logistics profit margin improved from 18.3% to 18.5% Logistics Logistics Revenue Logistics Operating Profit Operating Profit Margin $M $M $0.8M $0.2M 15.2 1
Slide 29: Logistics – Q4 FY06/07 Revenue Breakdown
Logistics – Q4 FY06/07 Revenue Breakdown Q4 Q4 ($M) Change FY05/06 FY06/07 Logistics Revenue 15.2 16.0 +5.2% Growth in Speedpost volumes $1.0M 7.5% 14.3 Cessation of contracts 13.3 not feasible with higher operating costs $0.2M $M 15.8% Q4 FY05/06 1.6 1.4 Q4 FY06/07 Speedpost Warehousing, Fulfillmen
Slide 30: Logistics – FY06/07 Performance
Logistics – FY06/07 Performance ♦ Logistics revenue ↑ 5.7% or $3.5M on improved Speedpost contributions ♦ Logistics profit ↑ 11.5% or $1.1M against last year on better contract yields ♦ Profit margin improved from 15.3% to 16.1% Logistics Logistics Revenue Logistics Operating Profit Operating Profit
Slide 31: Logistics – FY06/07 Revenue Breakdown
Logistics – FY06/07 Revenue Breakdown ($M) FY05/06 FY06/07 Change Logistics Revenue 60.8 64.3 +5.7% Growth in Speedpost contributions $3.1M 5.7% 57.6 54.5 Cessation of contracts not feasible with higher operating costs $M $0.2M 3.0% FY05/06 5.9 5.7 FY06/07 Speedpost Warehousing, Fulfillment & Distri
Slide 32: Retail – Q4 FY06/07 Performance
Retail – Q4 FY06/07 Performance ♦ Retail revenue ↑ 8.6% or $1.1M against last year as contributions from higher value Retail products and financial services offset decline in agency and bill presentment services ♦ Retail profit ↑ 26.7% or $0.5M against last year ♦ Retail profit margin improved from
Slide 33: Retail – Q4 FY06/07 Revenue Breakdown
Retail – Q4 FY06/07 Revenue Breakdown Q4 Q4 ($M) Change FY05/06 FY06/07 Growth in Retail product revenue partially offset Retail Revenue 13.3 14.5 +8.6% decline in agency & bill presentment contributions Continued strong $0.6M growth $0.1M 10.9% 1.9% $1.7M 5.5 63.5% 5.3 5.2 4.9 4.3 $M 2.6 Q4 FY05/06
Slide 34: Retail – FY06/07 Performance
Retail – FY06/07 Performance ♦ Retail revenue ↑ 12.1% or $6.0M as strategy to leverage Retail network continued to bear fruit ♦ Retail profit ↑ 40.1% or $2.7M due to growth in higher-margin financial services ♦ Retail profit margin improved from 13.7% to 17.1% Retail Retail Revenue Retail Operating
Slide 35: Retail – FY06/07 Revenue Breakdown
Retail – FY06/07 Revenue Breakdown ($M) FY05/06 FY06/07 Change Retail Revenue 49.6 55.6 +12.1% Higher Retail product contributions mitigated decline in agency & bill presentment contributions Strong growth in $0.1M $1.1M financial services 5.3% 0.5% revenue $7.0M 21.1 20.7 21.0 19.6 88.6% 14.9 $M 7.
Slide 36: Cashflow, Dividends, Key Financial Indicators
Cashflow, Dividends Key Financial Indicators 34
Slide 37: Cash Flow, Dividends
Cash Flow, Dividends ♦ Robust cashflow generation Net Operating Cashflow & Free Cashflow — Maintained strong cashflow $M generation, with improvements in 160.9 149.7 144.4 139.4 152.4 net cash inflow and free cashflow 121.7 130.7 114.4 ♦ Dividends — Proposed final dividend of 2.5 cents per share, gi
Slide 38: Key Financial Indicators
Key Financial Indicators ♦ Lower net debt to equity ratio Return on Average Equity (ROAE) due to increase in reserves and 84.2% partial repayment of term loan ♦ Improvements in ROAE and 51.7% ROIC with optimised capital 33.8% 35.0% structure FY03/04 FY04/05 FY05/06 FY06/07 Net Debt to Equity Return
Slide 39: Summary
Summary Sours Aluays 37
Slide 40: Summary
Summary ♦ Strong Q4 results, with continued improvements in performance by all business segments — Revenue ↑ 7.3% from $105.0M to $112.6M — Underlying net profit ↑ 16.9% from $31.1M to $36.3M ♦ Good set of results for full-year FY2006/07 — Revenue ↑ 5.6% from $412.8M to $436.0M — Underlying net prof
Slide 41: Thank You
Thank You Sours Aluays 39