Singapore Post Ltd. · SGX:S08
Singapore Post — Q1 FY2016/17 Earnings Presentation
24 slides from Singapore Post's earnings presentation, Aug 4, 2016
Slide 1: Q1 FY2016/17 Financial Results
Q1 FY2016/17 Financial Results 4 August 2016
Slide 2: Agenda
Agenda Overview & Q1 FY2016/17 Financials eCommerce-Related Revenues Segmental Results Business Updates Summary & Outlook The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future periods, compared
Slide 3: Q1 FY2016/17: Underlying net profit declined 11.2% due to investments in business transformation
Q1 FY2016/17: Underlying net profit declined 11.2% due to investments in business transformation Q1 FY2016/17 P&L, $M YoY Q1 FY16/17 Q1 FY15/16 % change Revenue growth driven by continued growth in cross-border eCommerce- Revenue 333.4 254.6 +30.9% related activities and the inclusion of Other incom
Slide 4: Revenue growth driven by eCommerce Logistics
Revenue growth driven by eCommerce Logistics Q1 FY2015/16 vs. Q1 FY2016/17 Revenue performance, $M +30.9% 333.4 Largely due to consolidation of US acquisitions 254.6 +740.6% - TradeGlobal & Jagged Peak1 65.3 eCommerce 7.8 +11.9% Driven by increased volumes on our 156.7 eCommerce Logistics network Lo
Slide 5: Increased expenses with growth in business volumes and change in business mix
Increased expenses with growth in business volumes and change in business mix Total expenses Q1 FY2016/17 breakdown, $M Q1 FY16/17 Q1 FY15/16 YoY % change Labour & related 85.0 72.7 +16.9% Higher headcount post acquisitions Volume-related 160.9 106.9 +50.5% See next slide Admin & others 35.4 31.2 +1
Slide 6: Volume-related expenses largely driven by growth in International mail and eCommerce Logistics
Volume-related expenses largely driven by growth in International mail and eCommerce Logistics, reflects change in Group business mix Volume-related expenses Q1 FY2016/17 breakdown, $M Q1 Q1 Change FY16/17 FY15/16 (%) Largely due to International mail outpayments, as well as conveyance costs related
Slide 7: Underlying Operating Profit
Underlying Operating Profit Q1 FY2015/16 vs. Q1 FY2016/17 Underlying Operating Profit performance, $M -4.1% 51.4 49.3 Logistics 6.8 7.2 +5.7% Ongoing integration of acquired subsidiaries Growth in international mail volumes from eCommerce-related activities, partially offset Postal 41.9 42.1 +0.4% b
Slide 8: Balance sheet & financial indicators
Balance sheet & financial indicators $M, unless otherwise stated Cash flow Q1 FY16/17 Q1 FY15/16 Improved operating cash flows, Operating cash flow (before working capital changes) 59.6 52.3 further boosted by positive working Changes in working capital 20.9 8.2 capital movement. Net cash provided b
Slide 9: Agenda
Agenda Overview & Q1 FY2016/17 Financials eCommerce-Related Revenues Segmental Results Business Updates Summary & Outlook The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future periods, compared
Slide 10: eCommerce-related revenues now 49.3% of Group revenue
eCommerce-related revenues now 49.3% of Group revenue Revenue performance, Q1 FY2015/16 vs Q1 FY2016/17, $M Q1 FY15/16 Q1 FY16/17 333.4 Group Revenue 254.6 169.2 eCommerce $65.3M Non eCommerce eCommerce 181.5 49.3% 40% $7.8M related 10% 28.7% $164.1M Postal $73.1M Postal 31% 47% $34.3M $51.5M 164.1
Slide 11: Overseas revenue now 50.2% of Group revenue
Overseas revenue now 50.2% of Group revenue Group revenue footprint Q1 FY2015/16 vs Q1 FY2016/17, $M 333.4 Group Revenue 254.6 166.0 Europe 158.4 50.2% 11% US Domestic 34% Asia 37.8% 27% $167.3M 167.3 Overseas 96.2 Australia 28% Q1 FY15/16 Q1 FY16/17 Differences in total due to rounding 10
Slide 12: Agenda
Agenda Overview & Q1 FY2016/17 Financials eCommerce-Related Revenues Segmental Results Business Updates Summary & Outlook The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future periods, compared
Slide 13: Reclassification of segmental reporting in line with transformation
Reclassification of segmental reporting in line with transformation From 1 April 2016, SingPost Group has reclassified the reporting of certain business units within the three business segments. These changes are in alignment with the Group’s strategy and enhance tracking of performance. Postal Comp
Slide 14: Postal: Q1 FY2016/17 Performance
Postal: Q1 FY2016/17 Performance $M Postal Q1 FY16/17 Q1 FY15/16 YoY % change Revenue 137.0 135.1 +1.5% Operating profit 42.1 41.9 +0.4% OP margin 30.7% 31.0% Revenue breakdown Q1 FY16/17 Q1 FY15/16 YoY % change Excluding the impact of the divestments, Postal revenue and OP Domestic mail1 64.0 66.9
Slide 15: Logistics: Q1 FY2016/17 Performance
Logistics: Q1 FY2016/17 Performance $M Logistics Q1 FY16/17 Q1 FY15/161 YoY % change Revenue 156.7 140.1 +11.9% Operating profit 7.2 6.8 +5.7% OP margin 4.6% 4.9% Revenue breakdown Q1 FY16/17 Q1 FY15/161 YoY % change Revenue rose 11.9%, with steady organic Quantium Solutions 28.5 26.4 +7.7% growth l
Slide 16: eCommerce: Q1 FY2016/17 Performance
1 eCommerce : Q1 FY2016/17 Performance $M eCommerce Q1 FY16/17 Q1 FY15/16 YoY % change Revenue 65.3 7.8 740.6% Operating profit (3.5) (1.9) (82.7%) OP margin (5.4%) (24.8%) Revenue breakdown Q1 FY16/17 Q1 FY15/16 YoY % change TradeGlobal & Jagged Peak together contributed to operating profit despite
Slide 17: Agenda
Agenda Overview & Q1 FY2016/17 Financials eCommerce-Related Revenues Segmental Results Business Updates Summary & Outlook The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future periods, compared
Slide 18: Creating a global end-to-end eCommerce Logistics network
Creating a global end-to-end eCommerce Logistics network SingPost Group today Global eCommerce Logistics network spanning 19 markets United Kingdom About 50 fulfilment centres globally Canada Netherlands United States Germany South Korea China Japan Processes >S$5 billion in gross Hong Kong Taiwan m
Slide 19: eCommerce Logistics Network Development / Key management
eCommerce Logistics Network Development eCommerce Freight, Customs & Warehousing Last Mile Delivery Services Regulations Mgmt & Fulfilment & Returns Key management eCommerce Logistics Postal International mail Marcelo Wesseler Sam Ang Woo Keng Leong Goh Hui Ling CEO, CEO, CEO, Deputy CEO, SP eCommer
Slide 20: Agenda
Agenda Overview & Q1 FY2016/17 Financials eCommerce-Related Revenues Segmental Results Business Updates Summary & Outlook The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial trends for future periods, compared
Slide 21: Q1 FY2016/17 Performance
Q1 FY2016/17 Performance Revenue growth driven by continued expansion of cross-border eCommerce-related activities, and the inclusion of contributions from new subsidiaries. Underlying net profit declined as a result of investments in business transformation • Loss of rental income from redevelopmen
Slide 22: Outlook
Outlook Domestic mail remains under pressure with declining volumes but this was offset by growth from International mail volumes. The Group will continue to defend the core postal business, while growing its global end-to-end eCommerce Logistics network The acquisitions of TradeGlobal and Jagged Pe
Slide 23: Thank you
Thank you
Slide 24: Appendix: Historical performance for the reclassified segments
Appendix: Historical performance provided for the reclassified segments Q1 FY2015/16 to Q4 FY2015/16 ($M) Q1 FY15/16 Q2 FY15/16 Q3 FY15/16 Q4 FY15/16 Postal Revenue 135.1 125.9 139.3 136.0 Operating Profit 41.9 37.2 41.3 36.9 OP margin 31.0% 29.6% 29.6% 27.2% Logistics Revenue 140.1 156.1 162.2 167.