Singapore Post Ltd. · SGX:S08
Singapore Post — Q1 FY2005/06 Earnings Presentation
27 slides from Singapore Post's earnings presentation, Jul 27, 2005
Slide 1: SGX Announcement: Presentation Slides for Q1 Results
MISCELLANEOUS Page 1 of 1 Print this page Miscellaneous * Asterisks denote mandatory information Name of Announcer * SINGAPORE POST LIMITED Company Registration No. 199201623M Announcement submitted on behalf of SINGAPORE POST LIMITED Announcement is submitted with SINGAPORE POST LIMITED respect to
Slide 2: Singapore Post Limited Quarter 1 FY2005/06 Results
Singapore Post Limited Quarter 1 FY2005/06 Results 27 July 2005
Slide 3: Note – Forward Looking Statements
Note – Forward Looking Statements 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 presentat
Slide 4: Agenda
Agenda ♦ Introduction ♦ Results & Business Highlights ♦ Financial Results ♦ Segmental Overview ♦ Cash Flow, Dividends ♦ Summary 2
Slide 5: Introduction: FY05/06 Controlled, Quality Growth
Introduction FY05/06 Controlled, Quality Growth FY04/05 Investing in Growth and Expertise FY03/04 Privatisation of SingPost … while remaining committed to our dividend policy 3
Slide 6: Highlights – Q1 FY05/06 Results
Highlights – Q1 FY05/06 Results ♦ Strong Q1 operating performance — Operating revenue ↑ 8.2% — Operating profit ↑ 15.9% — EBITDA ↑ 6.7% ♦ Q1 net profit ↑ 13.2% — Excluding depreciation impact, net profit ↑ 5.2% ♦ Strong cashflow generation — Operating cash flow before working capital changes ↑ to S$
Slide 7: Highlights – Q1 FY05/06 Results
Highlights – Q1 FY05/06 Results Group ♦ Q1 OR ↑ 8.2% performance ♦ Good operating results on strong performance by all three segments – Mail, Logistics, Retail ♦ Mail OR ↑ 8.4% Mail ♦ Boost from direct mail, international mail, hybrid mail ♦ Logistics OR ↑ 11.4% Logistics ♦ Strong Speedpost performa
Slide 8: Business Highlights – Q1 Initiatives
Business Highlights – Q1 Initiatives Strategic Business Initiatives Initiatives Launched Strategic Intent Harry Potter book launch 10 May 05 Creating a virtual mall concept Building awareness and promotion of 7 Wonders of the World 25 May 05 products and services Friday Mailbox Surprise! 10 June 05
Slide 9: Business Highlights – Q1 Initiatives
Business Highlights – Q1 Initiatives Financial Services Update ♦ Marketing programme includes roadshows to promote the service in the communities where outlets are located, as well as AdMail to create awareness ♦ Target to open 3 more outlets in FY05/06; opening in Toa Payoh North and Bukit Batok Ea
Slide 10: Q1 FY05/06 Financial Results
Q1 FY05/06 Financial Results 8
Slide 11: Q1 FY05/06 Performance Highlights
Q1 FY05/06 Performance Highlights ♦ Good operating results on strong core business performance (S$’000) Q1 FY04/05 Q1 FY05/06 Change Operating revenue 89,441 96,814 8.2% Other operating income 3,881 4,399 13.3% Operating expenses (62,053) (64,983) 4.7% Operating profit 31,269 36,230 15.9% Assoc & JV
Slide 12: Quarterly Performance Overview
Quarterly Performance Overview ♦ Continued improvement in quarterly operating performance ♦ Strong 8.2% quarterly revenue growth ♦ Firm EBITDA growth and strong underlying performance following last year’s investment in growth and expertise Quarterly Operating Revenue Quarterly EBITDA 8.2% 6.7% 0.5%
Slide 13: Q1 FY05/06 Operating Expenses
Q1 FY05/06 Operating Expenses ♦ Change in useful lives of assets reduced depreciation charges ♦ Excluding depreciation impact, operating expenses ↑ 8.1% (S$’000) Q1 FY04/05 Q1 FY05/06 Change Staff costs 18,604 19,998 7.5% Depreciation 8,315 6,420 22.8% Traffic & related expenses 18,808 20,513 9.1% G
Slide 14: Q1 FY05/06 Operating Expenses
Q1 FY05/06 Operating Expenses ♦ Direct costs up in tandem with business performance ♦ Indirect costs under control (S$’000) Q1 FY04/05 Q1 FY05/06 Change Direct costs 45,246 49,893 10.3% - Direct variable costs 24,767 27,772 12.1% - Staff costs 18,604 19,998 7.5% - Selling & promotion expenses 1,875
Slide 15: Quarterly Performance Overview
Quarterly Performance Overview EBITDA* Margins ♦ Profit margins remained strong 46.6% 46.0% 45.8% 45.7% 45.7% in Q1 FY05/06 Q1 Q2 Q3 Q4 Q1 FY04/05 FY04/05 FY04/05 FY04/05 FY05/06 Operating Profit* Margins Net Profit* Margins 37.4% 35.0% 35.6% 34.5% 29.1% 30.4% 33.7% 28.1% 27.8% 28.1% Q1 Q2 Q3 Q4 Q1
Slide 16: Segmental Overview
OF ips We make it our business to deliver Segmental Overview 14
Slide 17: Mail – Q1 FY05/06 Overview
Mail – Q1 FY05/06 Overview ♦ Actively pursuing opportunities and implementing initiatives — Direct mail — International mail — Mailroom management — Hybrid mail operations Mail Mail Mail Operating Revenue Operating Profit Operating Profit Margin 39.2% 14.0% 8.4% 37.3% Q1 FY04/05 Q1 FY05/06 Q1 FY04/0
Slide 18: Mail – Q1 FY05/06 Revenue Breakdown
Mail – Q1 FY05/06 Revenue Breakdown Q1 Q1 (S$M) Change FY04/05 FY05/06 ♦ Strong growth in direct mail Mail 71.0 77.0 8.4% — 7.7% ↑ in direct mail traffic — Launch of Friday Mailbox Surprise! ♦ Increased mailroom outsourcing activities 7.5% ♦ Mailings from new customers as well as increased volume fr
Slide 19: Logistics – Q1 FY05/06 Overview
Logistics – Q1 FY05/06 Overview ♦ Pursuing regional network connectivity ♦ Regular review of rates, service quality and offerings amidst rising fuel costs ♦ Stronger growth in Speedpost Islandwide (lower margins vis a vis Speedpost Worldwide) Logistics Logistics Logistics Operating Revenue Operating
Slide 20: Logistics – Q1 FY05/06 Revenue Breakdown
Logistics – Q1 FY05/06 Revenue Breakdown Q1 Q1 (S$M) Change FY04/05 FY05/06 Logistics 12.1 13.5 11.4% ♦ Strong domestic traffic growth ♦ Fuel and security surcharge 12.0% 12.3 ♦ New customers acquired 11.0 7.4% 1.12 Q1 FY04/05 1.05 Q1 FY05/06 Speedpost Warehousing, fulfilment & distribution 18
Slide 21: Retail – Q1 FY05/06 Overview
Retail – Q1 FY05/06 Overview ♦ Growing contributions from remittance services, financial services and vPOST transactions ♦ Steady improvement in operating profit margin following investment in growth and expertise last year Retail Retail Retail Operating Revenue Operating Profit Operating Profit Mar
Slide 22: Retail – Q1 FY05/06 Revenue Breakdown
Retail – Q1 FY05/06 Revenue Breakdown Q1 Q1 (S$M) Change FY04/05 FY05/06 Retail 10.2 11.4 11.1% ♦ Growing contributions from financial services and remittances services ♦ Increasing transactions on vPOST 18.7% 3.4% 6.1 5.3 5.2 5.1 Q1 FY04/05 Q1 FY05/06 Agency & others Inter-segment 20
Slide 23: Cash Flow, Dividends
OF ips We make it our business to deliver Cash Flow, Dividends 21
Slide 24: Q1 FY05/06 Cash Flow, Dividends
Q1 FY05/06 Cash Flow, Dividends ♦ Strong cashflow generation — Q1 operating cash flow (before working capital changes) rose to S$42.7 million from S$39.5 million ♦ Quarterly dividends starting FY05/06 Quarterly Dividends DPS Q1 Interim 1.25 cents — Net 1.25 cents per share each quarter Q2 Interim 1.
Slide 25: Summary
OF ips We make it our business to deliver Summary 23
Slide 26: Summary
Summary ♦ Strong business performance — All business units performed well — Strong operating revenue growth of 8.2% — Q1 net profit ↑ 13.2% (excluding depreciation impact, ↑ 5.2%) ♦ Controlled, quality growth — Investments in growth and expertise put in place; minimal additional development and star
Slide 27: Thank You
OF ips We make it our business to deliver Thank You 25