Singapore Post Ltd. · SGX:S08
Singapore Post — Q1 FY2018/19 Earnings Presentation
26 slides from Singapore Post's earnings presentation, Aug 3, 2018
Slide 1: Financial results Q1 FY2018/19
Financial results Q1 FY2018/19 3 August 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
• Q1 FY2018/19 Financials • Cash flow and Balance sheet • Segmental results • Summary • Strategy 2
Slide 4: Overview – Q1 FY2018/19
Overview – Q1 FY2018/19 Revenue Operating Profit before exceptional items S$372.6 million S$39.2 million +3.3% YoY +1.2% YoY +22.5% QoQ Free cash flow Underlying net profit S$62.1 million S$24.7 million +93.9% YoY -9.8% YoY +60.4% QoQ Continued strong free cash flow generation 3
Slide 5: Q1 FY2018/19 financial statement
Q1 FY2018/19 financial statement Restated YoY S$M Q1 FY18/19 Q1 FY17/18 % change Revenue 372.6 360.5 +3.3% Total expenses (336.3) (327.6) +2.7% Operating profit before exceptional items 39.2 38.8 +1.2% Exceptional items (6.0) 4.0 N.M. Share of associated companies & JVs (3.5) (2.8) (24.0%) Income ta
Slide 6: Q1 FY2018/19 operating expenses
Q1 FY2018/19 operating expenses Restated YoY S$M Q1 FY18/19 Q1 FY17/18 % change Volume-related (200.3) (188.6) +6.2% Traffic & related (120.9) (112.7) +7.3% Outsourcing services and delivery expenses (79.4) (76.0) +4.6% Labour & related (78.3) (82.8) (5.5%) Admin & others (38.4) (34.7) +10.7% Deprec
Slide 7: Highlights – Q1 FY2018/19
Highlights – Q1 FY2018/19 Extract full value from investments Winning in our home market - Maximum value from international subsidiaries Parcel sorting Parcel sorting utilisation volumes Improved performance from Quantium Solutions, which 24% +47%1 YoY A specialist in logistics narrowed losses by 45
Slide 8: eCommerce-related revenue continues to grow
eCommerce-related revenue continues to grow eCommerce-related as 51.0% 53.7% % of Group revenue S$M Group Revenue 360.5 372.6 +8.8% 200.3 eCommerce-related 184.0 Non-eCommerce 176.5 172.3 related Q1 FY17/18 Q1 FY18/19 7
Slide 9: Cash flow & Balance sheet
Cash flow & Balance sheet 8
Slide 10: Strong free cash flow generation
Strong free cash flow generation S$M Q1 FY18/19 Q1 FY17/18 Net cash provided by operating activities 71.3 58.4 Capital expenditure (9.2) (26.4) Free cash flow 62.1 32.0 9
Slide 11: Strong financial indicators
Strong financial indicators As at As at S$M Financial indicators Jun 2018 Mar 2018 Cash & cash equivalents at end of financial period 377.6 314.1 Borrowings 248.2 244.0 Net cash position 129.4 70.1 Q1 FY18/19 Q1 FY17/18 EBITDA1 50.1 50.2 EBITDA1 to interest expense (times) 21.1x 17.7x 1. Excluding e
Slide 12: Segmental results
Segmental results 11
Slide 13: Segmental reporting
Segmental reporting From 1 April 2018, SingPost Group has reclassified the reporting of certain business units into four key business segments. Post and Parcel Logistics1 Comprises the core Postal and Singapore parcel Comprises the Logistics businesses of the delivery business of the Group. This inc
Slide 14: Segment revenue and operating profit
Segment revenue and operating profit S$M Operating revenue 360.5 372.6 Operating Profit 38.8 39.2 before exceptional items 17.1 22.6 Property eCommerce 57.7 55.2 13.2 Property 7.9 120.4 Logistics 123.0 Post and Parcel 43.4 41.8 Post and Parcel 186.0 176.0 0.1 Logistics (2.5) (13.2) (11.6) eCommerce
Slide 15: Post and Parcel
Post and Parcel S$M Q1 Q1 YoY % Post and Parcel FY18/19 FY17/18 change Revenue 186.0 176.0 +5.7% Increased cross-border and domestic eCommerce deliveries helped mitigate decline Domestic mail 56.9 58.4 (2.5%) in domestic letter mails. International mail1 99.7 88.2 +13.0% SP Parcels 22.6 21.7 +3.9% M
Slide 16: Logistics
Logistics S$M Q1 Q1 YoY % Logistics FY18/19 FY17/18 change Revenue 120.4 123.0 (2.2%) Logistics segment registered operating profit of Quantium Solutions1 24.0 25.1 (4.3%) S$0.1 million compared to operating losses last year, led by improved performance from Couriers Please2 36.5 34.8 +4.9% Quantium
Slide 17: eCommerce
eCommerce S$M Q1 Q1 YoY % eCommerce FY18/19 FY17/18 change Revenue 55.2 57.7 (4.3%) Operating losses rose largely due to the US Businesses, which experienced pricing US Businesses 51.5 53.2 (3.3%) pressures, change in sales mix from higher SP eCommerce 3.8 4.5 (16.3%) margin fulfilment services towa
Slide 18: Underlying net profit movement
Underlying net profit movement Underlying net profit -9.8% S$M Logistics eCommerce Property OP OP Post & OP Parcel OP Associates 2.5 4.5 Other items1 & JV (largely tax) 5.3 1.6 0.7 27.3 3.6 24.7 Q1FY17/18 Q1 FY17/18 Property Logistics eCommerce Post & Associates & Others Q1 Q1 FY18/19 FY18/19 Parcel
Slide 19: Summary
Summary 18
Slide 20: Summary
Summary Revenue rose 3.3%, driven by International mail and Property Net profit down 40.4% due largely to exceptional fair value losses from warrants in an associated company Underlying net profit declined 9.8% as the improved operating profit performance before exceptional items was offset by lower
Slide 21: Thank You
Thank You — : x. ai & a 4 uu ar | i
Slide 22: Strategy
Strategy 21
Slide 23: 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
Slide 24: Winning in our home market
Winning in our home market Strong infrastructure and scale advantage Singapore’s Public Postal Licensee 3 million post mail items a day 57 offices 743 street posting boxes Drive scale of eCommerce warehousing & fulfilment, No.1 Accelerate urban solutions for a Smart Nation last mile provider Automat
Slide 25: Providing end-to-end eCommerce logistics solutions
Providing end-to-end eCommerce logistics solutions Integrated end-to-end solutions Front-end Warehousing Last-mile Freight & solutions & Fulfilment delivery & returns Line-haul 24
Slide 26: Capturing global cross-border eCommerce flows
Capturing global cross-border eCommerce flows Operating in 19 markets, wholly owned last mile in Singapore & Australia Canada United Kingdom Netherlands Germany United States South Korea Japan China Leveraging our proprietary technology platform India Hong Kong Taiwan Thailand Philippines Proprietar