Singapore Post Ltd. · SGX:S08
Singapore Post — Q3 FY2017/18 Earnings Presentation
25 slides from Singapore Post's earnings presentation, Feb 2, 2018
Slide 1: Q3 & 9M FY2017/18 Financial Results
Q3 & 9M FY2017/18 Financial Results 2 Feb 2018
Slide 2: Agenda
Agenda Q3 & 9M FY2017/18 Financials Cash flow and Balance sheet Segmental results Business & corporate updates Summary The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future periods, compared to
Slide 3: Q3 FY2017/18 Profit & Loss
Q3 FY2017/18 Profit & Loss Q3 FY2017/18 P&L, $M YoY Q3 FY17/18 Q3 FY16/17 % change Revenue 412.8 369.4 +11.7% Revenue growth across all three segments driven by higher Other income and gains (net) eCommerce-related activities Rental and property-related income 13.9 9.1 +52.9% Miscellaneous 2.9 (1.8)
Slide 4: Revenue movement
Revenue movement Q3 FY2016/17 vs. Q3 FY2017/18 Revenue performance, $M +11.7% 412.8 369.4 +19.7% Strong growth in US eCommerce revenue led by 97.1 higher volumes and new customers eCommerce 81.1 Increased last-mile deliveries across Singapore and 173.9 +1.5% Australia, and higher freight forwarding
Slide 5: Operating expenses
Operating expenses Total expenses Q3 FY2017/18 breakdown, $M Q3 FY17/18 Q3 FY16/17 YoY % change higher temporary and contract staff costs to support growth in the Labour & related 102.4 88.4 +15.9% business Volume-related 223.6 196.2 +13.9% higher International mail terminal Traffic & related 130.0
Slide 6: Operating Profit before exceptional items
Operating Profit before exceptional items Q3 FY2016/17 vs. Q3 FY2017/18 Operating Profit performance, $M +21.1% 37.4 45.2 Property 5.9 +51.8% Rental income from SingPost Centre retail mall 9.0 Logistics 8.8 4.9 (44.8%) Due largely to an increase in line haul and handling costs as well as lower contr
Slide 7: Q3 FY2017/18 Underlying Net Profit movement
Q3 FY2017/18 Underlying Net Profit movement Underlying Net Profit performance, $M Logistics Postal operating operating Associates Others1 Other items eCommerce profit profit & JVs (largely net operating Property 2.5 4.0 finance expense) profit 1.5 1.2 3.1 5.3 35.2 +11.9% 4.7 31.4 Q3 FY16/17 Q3 eComm
Slide 8: 9M FY2017/18 Profit & Loss
9M FY2017/18 Profit & Loss 9M FY2017/18 P&L, $M YoY 9M FY17/18 9M FY16/17 % change Revenue 1,121.6 1,024.5 +9.5% Revenue growth across all three segments driven by higher Other income and gains (net) eCommerce-related activities Rental and property-related income 33.6 27.8 +20.9% Miscellaneous 9.3 2
Slide 9: Agenda
Agenda Q3 & 9M FY2017/18 Financials Cash flow and Balance sheet Segmental results Business & corporate updates Summary The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future periods, compared to
Slide 10: Cash Flow movement
Cash Flow movement $M, unless otherwise stated 9M FY17/18 9M FY16/17 Operating cash flow before working capital changes 152.2 157.8 Largely stable operating cash flow Changes in working capital 24.7 24.2 Income tax paid (30.4) (29.6) Lower capital expenditure with the Net cash provided by operating
Slide 11: Balance Sheet and financial indicators
Balance Sheet and financial indicators $M, unless otherwise stated As at As at Financial indicators Dec 2017 Mar 2017 Includes cash proceeds from Alibaba to be used in accordance with the Cash & cash equivalents at end of financial period 284.3 366.6 investment agreements Borrowings 235.3 364.0 Lowe
Slide 12: Agenda
Agenda Q3 & 9M FY2017/18 Financials Cash flow and Balance sheet Segmental results Business & corporate updates Summary The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future periods, compared to
Slide 13: Postal: Q3 FY2017/18 Performance
Postal: Q3 FY2017/18 Performance $M Postal Q3 FY17/18 Q3 FY16/17 YoY % change International mail revenue rose 37.7%, as quarterly revenue crossed Revenue 166.0 143.4 +15.8% S$100 million for the first time on the back of higher cross-border Operating profit 40.1 38.5 +4.0% eCommerce deliveries inclu
Slide 14: Postal: 9M FY2017/18 Performance
Postal: 9M FY2017/18 Performance $M Postal 9M FY17/18 9M FY16/17 YoY % change The revenue trends for 9M are similar to that for Q3. Revenue 464.2 407.3 +14.0% In 9M, although International mail Operating profit 111.5 113.9 (2.2%) operating profit rose, this was not sufficient to offset the impact of
Slide 15: Logistics: Q3 FY2017/18 Performance
Logistics: Q3 FY2017/18 Performance $M Logistics Q3 FY17/18 Q3 FY16/17 YoY % change SP Parcels and Couriers Please’s revenue rose with increased last-mile Revenue 173.9 171.3 +1.5% delivery volumes in Singapore and Australia respectively, while Famous Operating profit 4.9 8.8 (44.8%) Holdings’ reven
Slide 16: Logistics: 9M FY2017/18 Performance
Logistics: 9M FY2017/18 Performance $M Logistics 9M FY17/18 9M FY16/17 YoY % change The revenue trends for 9M are similar to that for Q3. Revenue 506.0 482.1 +5.0% For 9M, operating profit declined 76% Operating profit 5.1 21.0 (76.0%) as it included a doubtful debt provision in Q2 for a key custome
Slide 17: eCommerce: Q3 FY2017/18 Performance
eCommerce: Q3 FY2017/18 Performance $M eCommerce Q3 FY17/18 Q3 FY16/17 YoY % change Jagged Peak revenue rose 43.9% as volume surged over the US peak Revenue 97.1 81.1 +19.7% shopping season of October to December while TradeGlobal overcame Operating profit (3.8) (8.4) +55.4% the loss in revenue from
Slide 18: eCommerce: 9M FY2017/18 Performance
eCommerce: 9M FY2017/18 Performance $M eCommerce 9M FY17/18 9M FY16/17 YoY % change Revenue rose 7.1% for 9M as growth for Jagged Peak was partially offset by Revenue 225.3 210.4 +7.1% a decline at TradeGlobal and SP eCommerce. Operating profit (10.8) (18.7) +41.9% Operating losses narrowed by 41.9%
Slide 19: Agenda
Agenda Q3 & 9M FY2017/18 Financials Cash flow and Balance sheet Segmental results Business & corporate updates Summary The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future periods, compared to
Slide 20: New international airmail rates for Small Packets
New international airmail rates for Small Packets • SingPost announced new international airmail rates for Small Packets from 2 January 2018. • This serves to better track the costs associated with the processing and delivery of packets, and reflects the rise in international postal settlement rates
Slide 21: eCommerce-related revenue
eCommerce-related revenue Revenue performance, Q3 FY2016/17 vs Q3 FY2017/18, $M eCommerce-related revenue rose 26.4% year-on-year, forming 60.0% of Group revenue 412.8 Group Revenue 369.4 60.0% 53.1% 247.8 eCommerce 196.1 related +26.4% Non eCommerce 173.4 165.0 related Q3 FY16/17 Q3 FY17/18 Differe
Slide 22: Key operating indicators
Key operating indicators Regional eCommerce Logistics Hub SingPost Centre retail mall Warehousing Parcel sorting 87%1 Committed Utilisation Utilisation 21%2 85.9%1 occupancy Processed up to 33,000 parcels a day during peak 1. As at 31 December 2017 2. Average daily utilisation for the quarter ended
Slide 23: Agenda
Agenda Q3 & 9M FY2017/18 Financials Cash flow and Balance sheet Segmental results Business & corporate updates Summary The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future periods, compared to
Slide 24: Q3 FY2017/18 Summary
Q3 FY2017/18 Summary Revenue rose 11.7% with growth across all three segments. Underlying net profit rose 11.9% largely due to: • higher operating profit from Postal, narrowed operating losses in eCommerce and improved contribution from Property. Cash flow and balance sheet position: • higher free c
Slide 25: Thank you
Thank you