Singapore Post Ltd. · SGX:S08
Singapore Post — FY2004/05 Earnings Presentation
40 slides from Singapore Post's earnings presentation, May 4, 2005
Slide 1: SGX Announcement: Presentation Slides for Q4 and FY2004/05 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: Q4 & Full Year FY2004/05 Results Briefing to Analysts & Media
Singapore Post Limited Q4 & Full Year FY2004/05 Results Briefing to Analysts & Media 4 May 2005
Slide 3: Note – Forward Looking Statements
Note – Forward Looking Statements 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 presentat
Slide 4: Q4 & Full Year FY04/05 Financial Results, Strategic Direction & Outlook
Q4 & Full Year FY04/05 Financial Results Strategic Direction & Outlook Mr BT Lau Group CEO 2
Slide 5: Agenda
Agenda ♦ Introduction ♦ Q4 FY04/05 Financial Results ♦ Full Year FY04/05 Financial Results ♦ Outlook ♦ Dividends ♦ Summary 3
Slide 6: Introduction
Introduction FY04/05 Investing in Growth and Expertise … while remaining committed to our dividend policy FY03/04 Privatisation of SingPost 4
Slide 7: Highlights
Highlights ♦ Strong Q4 FY04/05 operating performance — Operating profit ↑ 11.2%, from S$29.6M to S$32.9M — Net profit ↑ 12.3% normalising tax in Q4 FY03/04 ♦ Good full year results despite investing in growth and expertise — Net profit ↑ 6.0%, from S$104.3M to S$110.5M — Excluding exceptionals, net
Slide 8: Q4 FY04/05 Financial Results
Q4 FY04/05 Financial Results 6
Slide 9: Q4 FY04/05 Performance Highlights
Q4 FY04/05 Performance Highlights ♦ Q4 net profit up 12.3%, normalising for tax in Q4 FY03/04 (S$’000) Q4 FY03/04 Q4 FY04/05 Change Operating revenue 92,522 94,342 2.0% Other operating income 4,053 4,461 10.1% Operating expenses (67,150) (66,146) 1.5% Exceptional items 159 243 52.8% Operating profit
Slide 10: Q4 FY04/05 Operating Expenses
Q4 FY04/05 Operating Expenses ♦ Significant improvement over last 3 quarters of expense growth – Q4 operating expenses ↓ 1.5% (S$’000) Q4 FY03/04 Q4 FY04/05 Change Staff costs 20,010 20,626 3.1% Depreciation 8,409 8,557 1.8% Traffic & related expenses 20,687 19,953 3.5% General administrative & othe
Slide 11: Quarterly Performance Overview
Quarterly Performance Overview ♦ Firm improvement in quarterly operating performance ♦ Focus on driving core business ♦ Good control over costs kept operating profit up Quarterly Operating Revenue Quarterly Operating Profit 3.2% 0.6% 2.0% 8.5% 1.3% 11.2% 2.6% 0.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2003/04 F
Slide 12: Full Year FY04/05 Financial Results
Full Year FY04/05 Financial Results 10
Slide 13: FY04/05 Performance Highlights
FY04/05 Performance Highlights ♦ Good full year FY04/05 results despite investing in growth (S$’000) FY03/04 FY04/05 Change Operating revenue 368,180 375,811 2.1% Other operating income 16,893 16,944 0.3% Operating expenses (256,313) (261,953) 2.2% Exceptional items 159 3,925 n.m. Operating profit 1
Slide 14: FY04/05 Operating Expenses
FY04/05 Operating Expenses ♦ Good cost control capped operating expense increase to 2.2% (S$’000) FY03/04 FY04/05 Change Staff costs 75,784 78,252 3.3% Depreciation 33,688 34,079 1.2% Traffic & related expenses 78,623 81,703 3.9% General administrative & others 68,218 67,919 0.4% Total operating exp
Slide 15: Full-Year Performance Overview
Full-Year Performance Overview ♦ Continue to focus on driving growth in core business ♦ Good cost control ♦ Steady profit margins despite investing in growth Operating & Net Profit Margins Segmental Operating Profit Margins 36.1% 36.5% 36.7% 36.2% 35.0% 35.8% 29.1% 29.4% 28.3% 15.3% 16.5% 13.5% 12.2
Slide 16: Financial Position
Financial Position Balance sheet highlights FY03/04 FY04/05 Change (S$M) Total assets 772.3 823.4 6.6% Shareholders’ equity 300.4 331.1 10.2% Cash & cash equivalents 98.4 159.0 61.6% Strong financial Net debt 201.6 141.0 30.0% position Cash flow highlights FY03/04 FY04/05 Change (S$M) Net cashflow f
Slide 17: Key Financial Indicators
Key Financial Indicators Key financial indicators FY03/04 FY04/05 Return on average equity (%) 33.8 35.0 Net debt to equity (%) 67.1 42.6 EBIT interest coverage* (x) 19.7 28.4 Earnings per share (basic) (cents) 5.49 5.81 Net assets per share (cents) 15.8 17.4 Dividends per share (cents) 4.2 5.0 * EB
Slide 18: Segmental Overview
OF ips We make it our business to deliver Segmental Overview 16
Slide 19: Segmental Overview
Segmental Overview ♦ Revenue contributions of core business remain steady FY04/05 Operating Revenue FY04/05 Operating Profit 10.7% 6.2% 1.6% 3.7% 13.7% 5.2% 78.5% 80.4% Mail Logistics Retail Others Mail Logistics Retail Others 17
Slide 20: Q4 Segmental Operating Revenue
Q4 Segmental Operating Revenue ♦ Good growth in all segments of the business (S$’000) Q4 FY03/04 Q4 FY04/05 Change Mail 72,704 73,833 1.6% Logistics 12,500 13,228 5.8% Retail 10,932 11,561 5.8% 18
Slide 21: Mail Overview – Full Year
Mail Overview – Full Year ♦ Growing segments within mail business: — Strong growth in international mail volumes — Continued growth in direct mail volumes ♦ Strong operating profit margin Mail Mail Mail Operating Revenue Operating Profit Operating Profit Margin 36.5% 36.7% 2.0% 2.4% FY03/04 FY04/05
Slide 22: Mail – Q4 Revenue Breakdown
Mail – Q4 Revenue Breakdown Q4 Q4 (S$M) Change FY03/04 FY04/05 Mail 72.7 73.8 1.6% 47.0 46.3 1.4% 24.4 Q4 FY03/04 22.6 Q4 FY04/05 7.9% 3.2 3.2 Domestic mail International mail Hybrid mail 20
Slide 23: Mail – Full-Year Revenue Breakdown
Mail – Full-Year Revenue Breakdown (S$M) FY03/04 FY04/05 Change Mail 289.6 295.3 2.0% 187.9 188.0 0.1% 94.7 89.3 FY03/04 FY04/05 6.0% 12.4 12.6 1.7% Domestic mail International mail Hybrid mail 21
Slide 24: Mail Outlook
Mail Outlook ♦ Positive prospects in segments within mail business — Direct mail — International mail ♦ Value-added mail services — Mail room acquisitions ♦ Regional presence for hybrid mail operations 22
Slide 25: Logistics Overview – Full Year
Logistics Overview – Full Year ♦ Strong growth in Speedpost revenue ♦ Improving profit margins Logistics Logistics Logistics Operating Revenue Operating Profit Operating Profit Margin 4.0% 20.0% 13.5% 11.7% FY03/04 FY04/05 FY03/04 FY04/05 FY03/04 FY04/05 23
Slide 26: Logistics Q4 Revenue Breakdown
Logistics Q4 Revenue Breakdown Q4 Q4 (S$M) Change FY03/04 FY04/05 Logistics 12.5 13.2 5.8% 12.1 11.3 6.7% Q4 FY03/04 Q4 FY04/05 1.2 1.2 Speedpost Warehousing, fulfilment &distribution 24
Slide 27: Logistics Full-Year Revenue Breakdown
Logistics Full-Year Revenue Breakdown (S$M) FY03/04 FY04/05 Change Logistics 49.9 51.9 4.0% 47.6 45.2 5.3% FY03/04 FY04/05 4.7 4.3 8.3% Speedpost Warehousing, fulfilment &distribution 25
Slide 28: Logistics Outlook
Logistics Outlook ♦ Establish greater regional connectivity ♦ Value for money services ♦ Regular review of rates and quality of service SingPost customer SingPost Regional courier services via local courier via Post service providers √ √ Regional Country 26
Slide 29: Retail Overview – Full Year
Retail Overview – Full Year ♦ Growth in remittance, vPOST and inaugural financial services contributions to retail revenue ♦ Year of development and rollout of financial services Retail Retail Retail Operating Revenue Operating Profit Operating Profit Margin 16.5% 1.5% 30.2% 11.3% FY03/04 FY04/05 FY
Slide 30: Retail Q4 Revenue Breakdown
Retail Q4 Revenue Breakdown Q4 Q4 (S$M) Change FY03/04 FY04/05 Retail 10.9 11.6 5.8% 5.9 5.4 5.5 5.5 8.5% Q4 FY03/04 Q4 FY04/05 Agency & others Inter-segment 28
Slide 31: Retail Full-Year Revenue Breakdown
Retail Full-Year Revenue Breakdown (S$M) FY03/04 FY04/05 Change Retail 43.7 44.3 1.5% 22.7 22.8 21.0 21.2 0.4% 1.1% FY03/04 FY04/05 Agency & others Inter-segment 29
Slide 32: Retail Outlook
Retail Outlook ♦ Leveraging on tri-channel network of post offices, Self-Automated Machines (SAM) and vPOST ♦ Financial services — Encouraging response to financial services introduced — Initial phase of learning, reviewing, refining — Expect to replicate services to more post offices — No significa
Slide 33: Financial Services Update
Financial Services Update ♦ 2 outlets opened in FY04/05; target 3 more outlets in FY05/06 ♦ Pawnbroking statistics (source: ROP): - 1H2004: S$0.78 billion pawnbroking value; 1.66 million transactions - Oct 2004: 91 pawnshops (inclusive of Speedcash) ♦ CASHOME to the Philippines soft launched in Octo
Slide 34: Outlook
OF ips We make it our business to deliver Outlook 32
Slide 35: Outlook
Outlook ♦ Improvements in operating performance of core business ♦ Benefits from operational review with McKinsey ♦ Financial services — Contributions coming through steadily — Replication of services to more post offices over next 12 months ♦ Review of useful life of assets — Expected change may re
Slide 36: Dividends
OF ips We make it our business to deliver Dividends 34
Slide 37: FY04/05 Dividends
FY04/05 Dividends ♦ Proposed final dividend of 2.7 cents — 28.6% increase over previous final dividend of 2.1 cents ♦ FY04/05 total dividends of 5.0 cents — 19.1% increase over 4.2 cents in FY04/05 Dividends DPS FY02/03 dividends 4.2 cents FY03/04 – interim 2.1 cents 4.2 cents – final 2.1 cents FY04
Slide 38: Enhanced Dividend Policy
Enhanced Dividend Policy ♦ Minimum annual payout raised to 5.0 cents from 4.2 cents “SingPost will endeavour to make an annual net dividend payout of 80-90% of net profit or 5.0 cents per share, whichever is higher.” ♦ Quarterly dividend payments — 1.25 cents per share per quarter, based on minimum
Slide 39: Summary
Summary FY05/06 Controlled, Quality Growth FY04/05 Investing in Growth and Expertise FY03/04 Privatisation of SingPost … while remaining committed to our dividend policy 37
Slide 40: Thank you
OF ips We make it our business to deliver Thank you 38