Singapore Post Ltd. · SGX:S08
Singapore Post — Q3 FY2019/20 Earnings Presentation
21 slides from Singapore Post's earnings presentation, Feb 7, 2020
Slide 1: Financial results Q3 & 9M FY2019/20
Financial results Q3 & 9M FY2019/20 7 Feb 2020
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
• Q3 & 9M FY2019/20 Financials • Cash flow and Balance sheet • Segmental results • Outlook 2
Slide 4: Q3 FY2019/20 financial statement
Q3 FY2019/20 financial statement In spite of record revenue of close to YoY S$150m for International Post & S$M Q3 FY18/19 Q3 FY19/20 % change Parcel, this was insufficient to offset the decline in domestic letter mail, as Revenue 363.4 355.9 (2.0%) well as lower freight forwarding revenue from a sl
Slide 5: Q3 FY2019/20 expenses
Q3 FY2019/20 expenses YoY Despite benefits delivered by our cost S$M Q3 FY18/19 Q3 FY19/20 % change savings actions, taken in anticipation of a declining mail environment, opex rose 3.5% Operating expenses (307.7) (318.4) +3.5% due to significant investments to improve service levels, as well as the
Slide 6: Q3 FY19/20 segment revenue and POA (Continuing operations)
Q3 FY19/20 segment revenue and POA (Continuing operations) S$M Revenue 363.4 355.9 Profit on 30.7 operating activities 54.8 Property 30.5 0.5% Property 41.3 13.9 Logistics 135.4 132.9 1.9% 13.9 Stable Post and Parcel 47.6 38.1 19.9% Post and Parcel 213.2 211.6 0.8% Logistics 0.5 N.M. (0.7) Others1 (
Slide 7: Cash flow & Balance sheet
Cash flow & Balance sheet 6
Slide 8: Free cash flow
Free cash flow S$M 9M FY18/19 9M FY19/20 Stable operating cash flow before Operating cash flow before working capital changes 159.0 160.3 working capital changes Changes in working capital (27.0) (69.5) Due largely to an increase in trade Income tax paid (32.7) (36.0) receivables, as a one-time chan
Slide 9: Financial indicators
Financial indicators As at As at S$M Financial indicators Mar 2019 Dec 2019 Cash & cash equivalents at end of financial period 392.2 259.1 Lower compared to March 2019, due to payment of dividends, timing of receivables in respect Borrowings 290.9 216.3 of International eCommerce deliveries, as well
Slide 10: Maintained dividend for Q3 FY2019/20
Maintained dividend for Q3 FY2019/20 Dividend per share S¢ 3.5 Books closure: 20 Feb 2020 0.5 cent Payment date: 28 Feb 2020 Q4 2.0 dividend per share for Q3 Our dividend policy is based on a FY19/20 payout ratio ranging from 60% to 80% of underlying net profit for each financial year. Q3 0.5 0.5 Q2
Slide 11: Segmental results
Segmental results 10
Slide 12: Post and Parcel
Post and Parcel S$M Q3 Q3 YoY % 9M 9M YoY % Post and Parcel FY18/19 FY19/20 change FY18/19 FY19/20 change Revenue 213.2 211.6 (0.8%) 575.9 584.9 +1.6% Domestic1 73.5 63.3 (13.8%) 212.5 192.7 (9.3%) International 139.7 148.2 +6.1% 363.4 392.2 +7.9% Profit on operating activities 47.6 38.1 (19.9%) 131
Slide 13: Logistics
Logistics S$M Q3 Q3 YoY % 9M 9M YoY % Logistics FY18/19 FY19/20 change FY18/19 FY19/20 change Revenue 135.4 132.9 (1.9%) 385.6 377.1 (2.2%) eCommerce logistics1 68.2 70.8 +3.8% 193.3 191.1 (1.1%) Freight forwarding2 67.2 62.1 (7.6%) 192.4 186.0 (3.3%) Profit on operating activities 0.5 (0.7) N.M. (1
Slide 14: Property
Property S$M Q3 Q3 YoY % 9M 9M YoY % Property FY18/19 FY19/20 change FY18/19 FY19/20 change Revenue 30.7 30.5 (0.5%) 91.1 90.7 (0.4%) Profit on operating activities 13.9 13.9 +0.0% 40.4 40.5 +0.3% Margin 45.2% 45.4% 44.3% 44.7% Property segment revenue, which comprises commercial property rental and
Slide 15: Outlook
Outlook 14
Slide 16: Outlook
Outlook In Singapore, domestic letter mail volume has shown an accelerated decline, while eCommerce- related packet and parcel volumes continue to grow. The Group has invested significantly to improve service quality, which has shown results over the peak season. The above are expected to result in
Slide 17: Thank You
Thank You 16
Slide 18: Supplementary information
Supplementary information 17
Slide 19: 9M FY2019/20 financial statement
9M FY2019/20 financial statement YoY S$M 9M FY18/19 9M FY19/20 % change Revenue 1,002.6 1,001.6 (0.1%) Operating expenses (853.2) (886.0) +3.8% Profit on operating activities 151.8 122.3 (19.4%) Share of associated companies & JV (7.1) 0.1 N.M. Exceptional items 22.9 0.3 (98.8%) Income tax expense (
Slide 20: 9M FY2019/20 expenses
9M FY2019/20 expenses YoY S$M 9M FY18/19 9M FY19/20 % change Operating expenses (853.2) (886.0) +3.8% Volume-related (512.1) (537.5) +5.0% Labour & related (208.0) (214.1) +2.9% Admin, selling-related & others (104.4) (83.4) (20.1%) Depreciation & amortisation (28.8) (51.1) +77.4% Impact on adoption
Slide 21: Underlying Net Profit Reconciliation Table
Underlying Net Profit Reconciliation Table Q3 Q3 9M 9M S$’000 FY18/19 FY19/20 FY18/19 FY19/20 Profit attributable to equity holders 50,202 30,493 94,066 83,904 Exceptional items (31,825) 711 (22,919) (274) Additional provision for contingent consideration of a foreign subsidiary 2,539 - 2,539 - Prof