Singapore Post Ltd. · SGX:S08
Singapore Post — H1 FY2022/23 Earnings Presentation
29 slides from Singapore Post's earnings presentation, Nov 3, 2022
Slide 1: H1 FY2022/23 Results Presentation
H1 FY2022/23 Results Presentation 3 November 2022
Slide 2: H1 FY2022/23 Group Overview
H1 FY2022/23 Group Overview Vincent Phang, Group CEO
Slide 3: Overview: Executing strategy, positioning Group for growth
Overview Investing in Australia Re-igniting our Executing transformation International business strategy… Building digitally enabled integrated B2B and B2C Re-organising and Emerging global logistics enterprise logistics business pivoting to new cross- border markets/lanes Growing contributions from
Slide 4: Introduction to new Management team members
Introduction to new Management team members Simon Slagter Richard Thame CEO, FMH CEO, CouriersPlease Li Yu Noel Singgih CEO, International Group CIO 4
Slide 5: The transformation journey
The transformation journey A global logistics operator with differentiating digitally enabled capabilities, cost-effective, low carbon networks Growth Extend logistics capabilities beyond Singapore and Australia Build and scale digitally enabled Optimise and scale integrated B2B and B2C logistics In
Slide 6: The transformation journey: revenue by strategic pillar
The transformation journey FY18/19 H1 FY22/23 FY25/26 and Revenue Revenue S$1.3bn ~S$1.0bn beyond Property Singapore Property Australia 4% 15% 6% Singapore Australia 17% 24% 42% H1 FY21/22 H1 FY22/23 TRANSFORMATION – Revenue Revenue IPP S$731.4m S$958.9m 16% more logistics and IPP 27% more internati
Slide 7: Australia: H1 FY2022/23 in review
Australia: H1 FY2022/23 in review Earnings accretive acquisition Integrating for synergies Strong contributions from 51%-owned Leveraging and combining capabilities of subsidiary FMH through business growth our businesses – FMH, CouriersPlease, and strategic acquisitions Quantium Solutions ANZ Pathw
Slide 8: Australia: Innovating integrated logistics
Australia: Innovating integrated logistics CouriersPlease efm Warehousing BagTrans Niche GKR Transport Formby Spectrum A digitally enabled, integrated B2B and B2C logistics ecosystem Leading in 4PL with proprietary technology and capabilities; rolling out enhanced platform underpinning 4PL business
Slide 9: International: H1 FY2022/23 in review
International: H1 FY2022/23 in review VN Re-ignite and pivot for growth Stabilising of business and margins; transiting out of exceptional circumstances Access to 220 markets with Re-organising for resilient cross-border networks, postal and commercial networks pivoting to new markets/lanes ▪ New hu
Slide 10: Singapore: H1 FY2022/23 in review
Singapore: H1 FY2022/23 in review Execute Future of Post: Enhancing Post offices Locker infrastructure for sustainable stations Letter boxes operations Potential for eCommerce logistics remains positive Locker stations Commitment to best-in-class service levels; @ condominiums trusted partner for na
Slide 11: Advancing sustainability goals
Advancing sustainability goals Making every delivery count for people and plant Electrification of delivery fleet by 2026 Reducing emissions with green facilities Raising governance standards ▪ SingPost Centre rated Green Mark GoldPLUS Won Corporate Governance Award in Diversity at SIAS Investors’ C
Slide 12: Strategic outlook: Positioning Group for growth
Strategic outlook: Positioning Group for growth Focusing on strategic initiatives Pursuing growth in Australia Re-igniting cross-border business Enhancing infrastructure in Singapore Transiting to low carbon; investing in environmental sustainability Positioning for growth Review real estate footpri
Slide 13: H1 FY2022/23 Financial Results
H1 FY2022/23 Financial Results Vincent Yik, Group CFO
Slide 14: H1 FY2022/23 Group performance
H1 FY2022/23 Group performance Revenue Changing revenue mix; growing S$958.9m contributions from Australia +31.1% YoY Improvement in Post & Parcel in Q2 Operating Profit following challenging Q1 S$41.3m Underlying net profit of S$13.2m (19.1%) YoY excluding exceptional items Underlying Net Profit In
Slide 15: H1 FY2022/23 P&L
H1 FY2022/23 P&L Group P&L (S$m) H1 FY22/23 H1 FY21/22 YoY chg Q2 FY22/23 Q1 FY22/23 Revenue 958.9 731.4 31.1% 483.6 475.2 Operating expenses (920.8) (682.6) 34.9% Improvement in Q2 vs Q1 Operating profit 41.3 51.1 (19.1%) 30.7 10.6 Share of assoc & JV 0.1 2.7 (95.0%) Exceptional items (24.0) (2.4)
Slide 16: Contributions by strategic pillars / markets
Contributions by strategic pillars / markets Australia Australia International 17% 42% 43% Revenue Property 6% H1 FY21/22 H1 FY22/23 S$731.4m S$958.9m 16% Evolving revenue and profit IPP Singapore 24% 27% International 59% 4% profile in line with IPP Property Singapore 15% transformation drive Inter
Slide 17: Contributions by segments
Contributions by segments 958.9 Operating Profit (S$m) 41.3 Revenue (S$m) 731.4 51.1 Logistics1 680.8 Logistics1 16.2 379.5 41.5 11.3 Property 22.7 26.6 261.7 325.5 Post & Parcel Others2 (10.8) (3.1) Property 50.8 59.8 Post & Parcel (12.1) Inter-segment elim. (34.5) (33.4) H1 FY22/23 H1 FY21/22 H1 F
Slide 18: Logistics: H1 FY22/23 performance
Logistics: H1 FY22/23 performance Segment P&L, S$m H1FY22/23 H1 FY21/22 % change Growing Logistics Revenue 680.8 379.5 79.4% contributions Australia businesses1 399.6 119.9 233.4% Freight forwarding 234.3 206.9 13.3% Good performance by Australian business, with strong contribution from Other logist
Slide 19: Australia: H1 FY2022/23 performance
Australia: H1 FY2022/23 performance Strong performance by FMH FMH proforma financials, A$m since acquisition FY ended 30 June FY18/19 FY19/20 FY20/21 FY21/22 Revenue 253 249 347 524 Growth in both 4PL and 3PL businesses Operating Profit 14 17 28 48 from organic and inorganic growth as FMH expands it
Slide 20: Post & Parcel: H1 FY22/23 performance
Post & Parcel: H1 FY22/23 performance Segment P&L, S$m H1FY22/23 H1 FY21/22 % change Challenging conditions in Revenue 261.7 325.5 (19.6%) Q1; improvement in Q2 International (IPP) 152.8 201.8 (24.3%) Lower eCommerce logistics volumes in Domestic1 (DPP) 108.9 123.8 (12.0%) both Domestic and Internat
Slide 21: Property: H1 FY22/23 performance
Property: H1 FY22/23 performance Improvement in Property Segment P&L, S$m H1FY22/23 H1 FY21/22 % change contributions Revenue 50.8 59.8 (15.0%) Property 50.8 48.5 4.6% 96.7% occupancy at SingPost Centre retail mall and office space Self storage business1 - 11.2 n/m Operating Profit 22.7 26.6 (14.8%)
Slide 22: Financial position
Financial position Operating Cash Inflow S$15.9m Lower profit, increase in income tax paid vs S$34.5m in H1FY21/22 Prudent capital management as the Group continues to Investing Cash Outflow invest in growth initiatives Acquisition and PPE additions, S$9.0m partly offset by proceeds from maturity of
Slide 23: Dividend
Dividend Dividend per share, S¢ 1.8 For H1 FY22/23, the Board has declared an 1.1 interim dividend of 0.18 cents per share 1.3 Final 0.6 Interim 0.5 0.5 This represents 30% of H1 UNP, similar to the 0.18 H1 interim payout last year FY20/21 FY21/22 FY22/23 36% 30% 30% Interim dividend as % of H1 UNP
Slide 24: Supplementary Information
Supplementary Information
Slide 25: Supplementary information: Australia
Supplementary information: Australia 4PL Technology 3PL 25
Slide 26: Supplementary information: International
Supplementary information: International IPP volumes adversely affected by further Conveyance costs have started supply chain disruptions from Chinese moderating cities lockdown Change in ex-SIN conveyance costs IPP Revenue (S$m) IPP Volume – Outbound (S$/kg) (Mil Kg) 300% (24.3%) (23.6%) 250% 201.8
Slide 27: Supplementary information: Singapore
Supplementary information: Singapore Revenue – eCommerce logistics and eCommerce logistics revenue as % of DPP revenue Letters & Printed papers (rolling 6 months) (S$m) (12.4%) 50% (24.5%) 54.7 40% 45.5 47.9 H1 FY21/22 42% 30% 36% 34.4 H1 FY22/23 20% 10% eComm Logistics Letters & Printed papers 0% A
Slide 28: Supplementary information: Property
Supplementary information: Property Committed occupancy Lease expiry profile Jun 22 Jul 22 Aug 22 Sep 22 62% SPC Mall 99.2% 99.2% 98.9% 99.7% SPC Mall 46% 47% SPC Office/ Enrichment 94.5% 95.1% 95.5% 95.5% 38% 33% SPC Office/ Enrichment SPC Overall1 95.9% 96.3% 96.5% 96.7% 16% 14% 17% 20% Others Oth
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