Singapore Post Ltd. · SGX:S08
Singapore Post — H1 FY2019/20 Earnings Presentation
25 slides from Singapore Post's earnings presentation, Nov 1, 2019
Slide 1: Financial results Q2 & H1 FY2019/20
Financial results Q2 & H1 FY2019/20 1 Nov 2019
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 FY2019/20 Financials • Cash flow and Balance sheet • Segmental results • Highlights • Outlook 2
Slide 4: Q2 FY2019/20 financial statement
Q2 FY2019/20 financial statement YoY S$M Q2 FY18/19 Q2 FY19/20 % change Largely led by International post & parcel, offset by lower Domestic post Revenue 318.1 324.4 +2.0% & parcel and freight forwarding Operating expenses (271.4) (287.6) +6.0% Due to higher volume-related expenses Profit on operati
Slide 5: Q2 FY2019/20 expenses
Q2 FY2019/20 expenses YoY S$M Q2 FY18/19 Q2 FY19/20 % change Operating expenses (271.4) (287.6) +6.0% Reflects costs to support the higher Volume-related (158.9) (170.6) +7.4% revenues at International post and parcel Additional postmen hired for the Singapore Labour & related (68.1) (71.7) +5.2% po
Slide 6: Q2 FY19/20 segment revenue and POA (Continuing operations)
Q2 FY19/20 segment revenue and POA (Continuing operations) S$M Revenue 318.1 324.4 Profit on 30.3 0.7% operating activities 49.7 Property 30.1 38.7 Property 13.4 128.0 124.8 2.5% Logistics 13.8 3.1% Post and Parcel 42.6 33.8 20.8% 186.1 5.3% Post and Parcel 176.7 Logistics (0.7) (0.9) 22.6% Others1
Slide 7: Cash flow & Balance sheet
Cash flow & Balance sheet 6
Slide 8: Free cash flow
Free cash flow S$M H1 FY18/19 H1 FY19/20 Stable operating cash flow before Operating cash flow before working capital changes 105.1 104.8 working capital changes Changes in working capital (76.0) (47.7) Negative capital movement for H1 Income tax paid (17.3) (18.4) due largely to international posta
Slide 9: Financial indicators
Financial indicators As at As at S$M Financial indicators Mar 2019 Sep 2019 Cash & cash equivalents at end of financial period 392.2 325.4 Lower compared to March 20191, due to payment of Borrowings 290.9 286.1 dividends, outpayments for international postal terminal dues, as well as net repayment N
Slide 10: Maintained dividend for Q2 FY2019/20
Maintained dividend for Q2 FY2019/20 Dividend per share S¢ 3.5 Books closure: 19 Nov 2019 Payment date: 29 Nov 2019 Q4 2.0 0.5 cent Our dividend policy is based on a dividend per payout ratio ranging from 60% to share for Q2 80% of underlying net profit for FY19/20 each financial year. Q3 0.5 Q2 0.5
Slide 11: Segmental results
Segmental results 10
Slide 12: Post and Parcel
Post and Parcel S$M Q2 Q2 YoY % H1 H1 YoY % Post and Parcel FY18/19 FY19/20 change FY18/19 FY19/20 change Revenue 176.7 186.1 +5.3% 362.7 373.4 +2.9% Domestic1 68.6 63.7 (7.2%) 139.0 129.4 (6.9%) International 108.1 122.4 +13.2% 223.7 244.0 +9.1% Profit on operating activities 42.6 33.8 (20.8%) 83.8
Slide 13: Logistics
Logistics S$M Q2 Q2 YoY % H1 H1 YoY % Logistics FY18/19 FY19/20 change FY18/19 FY19/20 change Revenue 128.0 124.8 (2.5%) 250.2 244.3 (2.4%) eCommerce logistics1 62.0 61.9 (0.1%) 125.1 120.3 (3.8%) Freight forwarding2 66.0 62.9 (4.8%) 125.2 123.9 (1.0%) Profit on operating activities (0.7) (0.9) (22.
Slide 14: Property
Property S$M Q2 Q2 YoY % H1 H1 YoY % Property FY18/19 FY19/20 change FY18/19 FY19/20 change Revenue 30.1 30.3 +0.7% 60.4 60.2 (0.4%) Profit on operating activities 13.4 13.8 +3.1% 26.5 26.6 +0.4% Margin 44.3% 45.4% 43.9% 44.3% Property segment revenue, which comprises commercial property rental and
Slide 15: Highlights
Highlights 14
Slide 16: New package categories and adjusted postal products
New package categories and adjusted postal products from 2 Dec 2019 to meet eCommerce demand • New Basic Package and Tracked Package categories, delivered to letterboxes, to meet eCommerce demand • Ordinary Mail renamed as Basic Mail and will only accept letters and printed papers up to 500g; Regist
Slide 17: Future of Post - Smart Shared Letterboxes
Future of Post - Transforming Singapore’s postal landscape with ‘Smart’ Shared Letterboxes Automated in-feed module for letters Modular lockers and packets for parcels Smart letterbox with automated sorting Be notified when and storage your items arrive Dispenser for letters and packets Significantl
Slide 18: Outlook
SINGPQST CENTRI
Slide 19: Outlook
Outlook In Singapore, domestic letter mail volume continues to decline while eCommerce-related packet and parcel volumes continue to grow. This is reflected in lower blended margins. The Group’s cost leadership program continues to help mitigate the impact. An increase in international letter mail r
Slide 20: Thank You
Thank You 19
Slide 21: Supplementary information
Supplementary information 20
Slide 22: H1 FY2019/20 financial statement
H1 FY2019/20 financial statement YoY S$M H1 FY18/19 H1 FY19/20 % change Revenue 639.2 645.6 +1.0% Operating expenses (545.5) (567.6) +4.1% Profit on operating activities 97.0 81.0 (16.5%) Share of associated companies & JV (7.1) 0.0 N.M. Exceptional items (8.9) 1.0 N.M. Income tax expense (21.7) (16
Slide 23: H1 FY2019/20 expenses
H1 FY2019/20 expenses YoY S$M H1 FY18/19 H1 FY19/20 % change Operating expenses (545.5) (567.6) +4.1% Volume-related (318.5) (338.8) +6.3% Labour & related (137.7) (141.0) +2.4% Admin, selling-related & others (70.1) (53.7) (23.4%) Depreciation & amortisation (19.2) (34.2) +78.4% Impact on adoption
Slide 24: Underlying Net Profit Reconciliation Table
Underlying Net Profit Reconciliation Table S$’000 Q2 Q2 H1 H1 FY18/19 FY19/20 FY18/19 FY19/20 Profit attributable to equity holders 25,149 27,729 43,864 53,411 Exceptional items 2,944 (936) 8,906 (985) Losses / (gain) on disposal of property, plant and equipment 67 35 43 (16) Professional fees 138 -
Slide 25: Deconsolidation of U.S. businesses
Deconsolidation of U.S. businesses On 19 September 2019, the Group announced that Jagged Peak, Inc., TradeGlobal North America Holding, Inc. and TradeGlobal LLC (the “U.S. Subsidiaries”) have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United Sta