Singapore Post Ltd. · SGX:S08
Singapore Post — H1 FY2018/19 Earnings Presentation
26 slides from Singapore Post's earnings presentation, Nov 2, 2018
Slide 1: Financial results Q2 & H1 FY2018/19
Financial results Q2 & H1 FY2018/19 2 November 2018
Slide 2: Disclaimer
Disclaimer 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 presentation that are not histori
Slide 3: Agenda
• Q2 & H1 FY2018/19 Financials • Cash flow and Balance sheet • Segmental results 2
Slide 4: Overview – Q2 FY2018/19
Overview – Q2 FY2018/19 Revenue Profit on operating activities S$368.7 million S$40.0 million +2.2% YoY +33.5% YoY Underlying net profit Q2 interim dividend S$28.1 million 0.5 cent per share +0.4% YoY same as last year Strong growth in profit on operating activities 3
Slide 5: Q2 FY2018/19 financial statement
Q2 FY2018/19 financial statement YoY S$M Q2 FY17/18 Q2 FY18/19 % change Revenue 360.6 368.7 +2.2% Operating expenses (333.0) (331.7) (0.4%) Profit on operating activities 29.9 40.0 +33.5% Share of associated companies & JV 4.9 (3.6) N.M. Exceptional items 0.9 (2.9) N.M. Income tax expense (8.5) (9.3
Slide 6: Q2 FY2018/19 operating expenses
Q2 FY2018/19 operating expenses YoY S$M Q2 FY17/18 Q2 FY18/19 % change Volume-related (190.9) (200.2) +4.9% Labour & related (81.8) (76.8) (6.2%) Admin, selling & others (45.4) (40.4) (11.1%) Depreciation & amortisation (14.7) (14.3) (2.7%) Operating expenses (333.0) (331.7) (0.4%) 5
Slide 7: Highlights – Q2 FY2018/19
Highlights – Q2 FY2018/19 Winning in our home market - strong increase in parcel volumes Extract full value from investments Parcel sorting volumes Quantium Solutions +38% YoY narrowed losses significantly A specialist in logistics and fulfilment services in compared to last year. Average daily volu
Slide 8: eCommerce-related revenue
eCommerce-related revenue eCommerce-related as 51.3% 51.3% % of Group revenue S$M Group Revenue 360.6 368.7 +2.2% 189.1 eCommerce-related 185.0 Non-eCommerce 175.6 179.6 related Q2 FY17/18 Q2 FY18/19 7
Slide 9: Q2 FY18/19 Underlying net profit movement
Q2 FY18/19 Underlying net profit movement Underlying net profit +0.4% S$M Post & Other Property eCommerce Parcel profit1 items2 profit1 profit1 Logistics Associates profit1 2.0 0.5 7.8 & JV 4.7 9.3 8.6 28.0 28.1 Q2FY17/18 Q2 FY17/18 Logistics Property Post & Others eCommerce Associates & Q2 Q2 FY18/
Slide 10: Cash flow & Balance sheet
Cash flow & Balance sheet 9
Slide 11: Free cash flow
Free cash flow S$M H1 FY17/18 H1 FY18/19 Operating cash flow before capital charges 94.7 105.1 Changes in working capital (29.3) (76.0)1 Income tax paid (14.9) (17.3) Net cash provided by operating activities 50.5 11.8 Capital expenditure (38.9) (18.8) Free cash flow 11.6 (7.0) 1. Due to timing diff
Slide 12: Financial indicators
Financial indicators As at As at S$M Financial indicators Mar 2018 Sep 2018 Cash & cash equivalents at end of financial period 314.1 285.2 Borrowings 244.0 293.7 Net cash / (debt) position 70.1 (8.5)1 H1 FY17/18 H1 FY18/19 EBITDA2 99.7 100.8 EBITDA2 to interest expense (times) 17.4x 20.8x 1. Due to
Slide 13: Segmental results
Segmental results 12
Slide 14: Segment revenue and profit on operating activities
Segment revenue and profit on operating activities S$M Profit on Revenue 360.6 368.7 operating activities 29.9 40.0 Property 18.6 22.4 eCommerce 54.4 54.2 13.3 Property 8.7 Logistics 124.9 125.1 Post and Parcel 40.0 42.1 Post and Parcel 173.9 176.7 0.3 Logistics (9.0) (11.2) (9.7) eCommerce (3.4) (1
Slide 15: Post and Parcel
Post and Parcel S$M Q2 Q2 YoY % H1 H1 YoY % Post and Parcel FY17/18 FY18/19 change FY17/18 FY18/19 change Revenue 173.9 176.7 +1.6% 349.9 362.7 +3.6% Domestic mail 55.7 55.8 0.0% 114.1 112.7 (1.3%) SP Parcels 21.2 20.7 (2.5%) 43.0 43.3 +0.7% International mail1 89.6 93.8 +4.7% 177.8 193.5 +8.8% Post
Slide 16: Logistics
Logistics S$M Q2 Q2 YoY % H1 H1 YoY % Logistics FY17/18 FY18/19 change FY17/18 FY18/19 change Revenue 124.9 125.1 +0.2% 247.9 245.4 (1.0%) Quantium Solutions 23.8 21.6 (9.2%) 48.9 45.6 (6.7%) CouriersPlease 38.5 38.1 (0.8%) 73.3 74.7 +1.9% Famous 62.6 65.4 +4.3% 125.8 125.2 (0.5%) Profit on operatin
Slide 17: eCommerce
eCommerce S$M Q2 Q2 YoY % H1 H1 YoY % eCommerce FY17/18 FY18/19 change FY17/18 FY18/19 change Revenue 54.4 54.2 (0.5%) 112.1 109.4 (2.4%) Profit on operating activities (3.4) (11.2) (227.0%) (8.2) (20.5) (149.5%) OP margin (6.3%) (20.7%) (7.3%) (18.8%) Revenue declined 0.5% in Q2 and 2.4% in H1. The
Slide 18: Property
Property S$M Q2 Q2 YoY % H1 H1 YoY % Property FY17/18 FY18/19 change FY17/18 FY18/19 change Revenue 18.6 22.4 +20.7% 35.6 45.1 +26.5% Profit on operating activities 8.7 13.3 +54.1% 16.6 26.5 +60.3% OP margin 46.6% 59.5% 46.5% 58.9% Property segment revenue, which comprises commercial property rental
Slide 19: Thank You
Thank You — : x. ai & a 4 uu ar | i
Slide 20: Supplementary information
[Oz bi, mim Supplementary information S|
Slide 21: H1 FY2018/19 financial statement
H1 FY2018/19 financial statement YoY S$M H1 FY17/18 H1 FY18/19 % change Revenue 721.1 741.3 +2.8% Operating expenses (656.2) (665.4) +1.4% Profit on operating activities 68.7 79.1 +15.2% Share of associated companies & JV 2.1 (7.1) N.M. Exceptional items 4.9 (8.9) N.M. Income tax expense (16.8) (20.
Slide 22: H1 FY2018/19 operating expenses
H1 FY2018/19 operating expenses YoY S$M H1 FY17/18 H1 FY18/19 % change Volume-related (379.6) (400.6) +5.5% Labour & related (164.6) (155.0) (5.8%) Admin, selling & others (83.2) (81.1) (2.4%) Depreciation & amortisation (28.9) (28.7) (0.6%) Operating expenses (656.2) (665.4) 1.4% 21
Slide 23: Segment revenue and profit on operating activities
Segment revenue and profit on operating activities S$M Profit on Revenue 721.1 741.3 operating activities 68.7 79.1 Property 35.6 45.1 eCommerce 112.1 109.4 26.5 Property 16.6 247.9 245.4 Logistics Post and Parcel 83.4 83.8 Post and Parcel 349.9 362.7 0.4 Logistics (11.4) (20.5) eCommerce (8.2) (24.
Slide 24: H1 FY18/19 Underlying net profit movement
H1 FY18/19 Underlying net profit movement Underlying net profit -4.6% S$M Post & eCommerce Property Parcel profit1 profit1 Logistics profit1 Associates profit1 10.0 0.4 12.3 & JV 11.9 9.2 Other items2 55.3 3.3 52.8 H1FY17/18 H1 FY17/18 Logistics Property Post & eCommerce Associates & Others H1 H1 FY
Slide 25: Exceptional items
Exceptional items Q2 Q2 YoY H1 H1 YoY S$M FY17/18 FY18/19 % change FY17/18 FY18/19 % change Losses on disposal of PPE (76) (67) 11.8% (15) (43) (186.7%) Professional fees (764) (138) 81.9% (1,482) (166) 88.8% Fair value gain / (loss) on warrants 1,730 (2,739) N.M. 7,405 (8,697) N.M. from an associat
Slide 26: Our Strategy
Our Strategy Ignite future Extract full value A Win in our home market B growth engines C from investments • Gain leading share in Parcels • Drive Southeast Asia with • Maximise value from end-to-end capabilities international subsidiaries • Drive scale of eCommerce and associates warehouse and fulf