Singapore Post Ltd. · SGX:S08
Singapore Post — FY2022/23 Earnings Presentation
28 slides from Singapore Post's earnings presentation, May 11, 2023
Slide 1: H2 & Full Year FY2022/23 Results Presentation
H2 & Full Year FY2022/23 Results Presentation 11 May 2023
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: Contents
Contents GROUP OVERVIEW 1. FY2022/23 Highlights 2. SingPost’s Transformation Journey ▪ Growing Logistics, Going Global 3. Transformation Achievements in FY2022/23 ▪ Repositioning for Growth ▪ Digital and Innovation ▪ Sustainability 4. Outlook, Strategic Review FY2022/23 FINANCIAL RESULTS
Slide 4: Group Overview
Group Overview Vincent Phang, Group CEO
Slide 5: FY2022/23 Highlights
FY2022/23 Highlights Diversification of revenue streams FY22/23 record revenue Financial 86% of revenue generated internationally First-ever full year loss for Post & Parcel Restructuring for growth Transforming into Re-engineering network and a global logistics capabilities Operational solutions pr
Slide 6: SingPost's Transformation Journey
SingPost’s Transformation Journey A more sustainable A more digitally enabled A more socially & business enterprise environmentally responsible organisation Our diversification has yielded results in We are building a digital core, leveraging We make every delivery count for people our logistics bus
Slide 7: Growing Logistics, Going Global
Growing Logistics, Going Global Property Property 1% 3% Post & Post & Parcel 37% Parcel 28% GROWING LOGISTICS FY21/22 FY22/23 S$1.7 bn S$1.9 bn Logistics segment has grown to become our largest contributor Logistics Logistics 60% 71% Revenue by segments Australia International Australia Internationa
Slide 8: Transformation Achievements in FY2022/23
Transformation Achievements in FY2022/23 REPOSITIONING Structured organisation for growth and efficiency; Re-organised business and FOR GROWTH assets – building networks and markets DIGITAL AND Enhanced tech-enabled capabilities; INNOVATION Digitally-enabled logistics networks at our core SUSTAINABI
Slide 9: Repositioning for Growth
Repositioning for Growth Reorganisation of resources for growth and efficiency Restructuring of resources as the Group evolves Divestment of non-core assets – for instance, into a logistics enterprise to facilitate our Hubbed, Sino-Famous, SPeC business; review for customers’ supply chains – strateg
Slide 10: Business Strategy at a Glance
Business Strategy at a Glance Building and scaling our networks across our 3 strategic pillars Australia International Singapore Accelerated the acquisition of Re-engineered and Largest last-mile delivery fleet of additional interest in FMH, strengthened international electric motorbikes raising our
Slide 11: Continued Diversification of Revenues
Continued Diversification of Revenues Pursuing growth in new markets; rebalancing our portfolio Australia International Singapore FMH business growth (revenue) IPP outbound eCommerce Top 5 eCommerce customers logistics volumes (m kg) volume growth +16% 3.8 3.3 +19% +66% 3.0 2.7 2.5 2.7 2.5 2.4 Exist
Slide 12: Serving Customers' Global Supply Chain Requirements
Serving Customers’ Global Supply Chain Requirements Re-engineering our international business A stronger commercial network and business with the transformation of our cross-border business; positioned for growing global cross-border eCommerce market* UK/EU Hub UK & EU Markets Impact of pandemic-rel
Slide 13: Commercial Sustainability of the Postal Operation
Commercial Sustainability of the Postal Operation The Post & Parcel business recorded its first-ever loss for FY22/23, and the Group expects it to continue to be loss- making for FY23/24. SingPost is reviewing the commercial sustainability of the domestic postal business. Operating leverage loss wit
Slide 14: Digital and Innovation
Digital and Innovation Leading edge 4PL technology in Australia ▪ Rollout of FMH’s 4PL proprietary technology platform, staying at the forefront of the market Digital capabilities to power International business ▪ Re-engineering and enhancing International cross- border network through digital 4PL p
Slide 15: Sustainability
Sustainability Strengthened ESG practices for sustained growth On track to meeting environmental targets Cherishing Advanced TCFD journey Net-Zero our Planet ESG performance as part of management Goals remuneration and organisational balance 30% scorecard By 2030: Scope 1 & 2 in Singapore Reduction
Slide 16: Outlook
Outlook Operating environment continues to pose challenges eCommerce growth back at pre-pandemic growth trajectory across most markets China re-opening presents opportunities for cross-border eCommerce growth again Normalising of supply chain and increase in air capacity resulting in lower air and s
Slide 17: Group Strategic Review
Group Strategic Review As the next step in transformation, the Board SingPost is has initiated a strategic review of the Group’s transforming into portfolio of businesses, with a view to a global logistics enterprise enhancing shareholder returns and ensuring and is well positioned the Group is appr
Slide 18: Financial Results
Financial Results Vincent Yik, Group CFO
Slide 19: Key Performance Highlights: Full Year FY22/23
Key Performance Highlights Full year FY22/23 Highlights A global logistics company with a 12.4% YoY Group revenue diversified portfolio to S$1,872.3m Growth in new business areas – in Australia, Logistics Logistics revenue 32.4% YoY to S$1,322.4m FMH consolidation for full year Logistics op. pro
Slide 20: Key Performance Highlights: H2 FY22/23
Key Performance Highlights H2 FY22/23 Highlights 2.2% YoY Improved H2 net profit over H1 Group revenue to S$913.4m Growth in Australia business partially offset freight forwarding decline in H2 and lower Post H2 net profit S$34.6m & Parcel revenue vs H1 loss vs (S$9.9m) H2 net profit vs loss in H1
Slide 21: Shift in Revenue and Profit Mix
Shift in Revenue and Profit Mix By strategic pillars Australia International Australia Diversification of the Group’s businesses, International 26% 56% 45% 41% with growing revenue and profits generated Revenue (S$m) internationally FY21/22 FY22/23 S$1.7 bn S$1.9 bn Property 5% 16% By segments IPP 2
Slide 22: Logistics: H2 & FY22/23 Performance
Logistics: H2 & FY22/23 Performance % H2 H2 % Logistics now 70% of Group Segment P&L, S$m FY22/23 FY21/22 change FY22/23 FY21/22 change revenue and >90% of Group profit Revenue 1,322.4 998.5 +32.4% 641.5 619.0 +3.6% Australia businesses1 815.1 413.6 +97.1% 413.4 293.7 +40.8% (FMH) Growth on back of
Slide 23: Post & Parcel: H2 & FY22/23 Performance
Post & Parcel: H2 & FY22/23 Performance % H2 H2 % First ever loss for Post & Segment P&L, S$m FY22/23 FY21/22 change FY22/23 FY21/22 change Parcel for full year Revenue 521.3 622.3 (16.2%) 259.6 296.8 (12.5%) Revenue: International (IPP) 298.2 375.3 (20.5%) 145.4 173.6 (16.2%) (IPP) Lower cross-bord
Slide 24: Strong Financial Position
Strong Financial Position Operating Cash Inflow Positioned for growth S$115.7m vs S$89.5m in FY21/22 Strong operating cashflow Divestments of non-core assets to recycle capital Investing Cash Outflow Prudent capital management as the Group continues to S$27.2m invest in strategic initiatives vs S$53
Slide 25: Proposed final dividend
Proposed final dividend Dividend per share S¢ Proposed final dividend of 0.40 cents per share, 1.8 subject to shareholders’ approval at AGM Together with interim dividend of 0.18 cents for 1.1 1.3 H1, total dividend for FY22/23 would amount to Final 0.6 0.58 0.58 cents per share 0.40* Total payout:
Slide 26: Annex
Annex
Slide 27: Property: H2 & FY22/23 Performance
Property: H2 & FY22/23 Performance % H2 H2 % Lower Property Segment P&L, S$m FY22/23 FY21/22 change FY22/23 FY21/22 change contributions due to deconsolidation of GSC Revenue1 88.3 114.9 (23.1%) 37.6 55.2 (31.9%) Property1 84.8 99.0 (14.4%) 34.0 50.2 (32.3%) SingPost Centre occupancy rate of 98.2% a
Slide 28: End
End