Singapore Post Ltd. · SGX:S08
Singapore Post — Q1 FY2019/20 Earnings Presentation
22 slides from Singapore Post's earnings presentation, Aug 2, 2019
Slide 1: Financial results Q1 FY2019/20
Financial results Q1 FY2019/20 2 Aug 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
• Q1 FY2019/20 Financials • Cash flow and Balance sheet • Segmental results • Outlook 2
Slide 4: Q1 FY2019/20 financial statement
Q1 FY2019/20 financial statement YoY S$M Q1 FY18/19 Q1 FY19/20 % change Higher International post & parcels Revenue 372.6 376.4 +1.0% revenue from cross-border eCommerce deliveries Operating expenses (333.7) (342.1) +2.5% Largely due to lower contribution from Domestic post & parcel Profit on operat
Slide 5: Q1 FY2019/20 expenses
Q1 FY2019/20 expenses YoY S$M Q1 FY18/19 Q1 FY19/20 % change Excluding volume-related expenses, operating expenses would have declined Operating expenses (333.7) (342.1) +2.5% 5.1% on cost management initiatives Reflects costs in relation to higher revenues Volume-related (200.3) (215.6) +7.6% at In
Slide 6: Q1 FY19/20 segment revenue and profit on operating activities
Q1 FY19/20 segment revenue and profit on operating activities S$M Revenue 372.6 376.4 Profit on Property 30.3 29.8 1.5% operating activities 39.2 U.S Business 35.3 51.5 55.5 7.9% Property 13.2 12.9 2.3% Logistics 122.2 119.5 2.2% Post and Parcel 41.2 37.6 8.9% Post and Parcel 186.0 187.3 0.7% (0.9)
Slide 7: Cash flow & Balance sheet
Cash flow & Balance sheet 6
Slide 8: Free cash flow
Free cash flow Due largely to timing of receivables in respect of cross-border eCommerce deliveries, which are experiencing strong growth in S$M Q1 FY18/19 Q1 FY19/20 China. The positive movement in Q1 last year was largely due to favourable timing for payables in Operating cash flow before working
Slide 9: Financial indicators
Financial indicators As at As at S$M Financial indicators Mar 2019 Jun 2019 Higher cash position due to Cash & cash equivalents at end of financial period 392.2 412.1 cash generated from operations Borrowings 290.9 290.7 Stable borrowings Net cash / (debt) position 101.3 121.4 Improved net cash posi
Slide 10: Maintained dividend for Q1 FY2019/20
Maintained dividend for Q1 FY2019/20 Dividend per share S¢ 3.5 Books closure: 20 Aug 2019 Payment date: 30 Aug 2019 Q4 2.0 Our dividend policy is based on a payout ratio ranging from 60% to 0.5 cent 80% of underlying net profit for dividend per each financial year. Q3 0.5 share for Q1 FY19/20 Q2 0.5
Slide 11: Segmental results
Segmental results 10
Slide 12: Post and Parcel
Post and Parcel S$M Q1 Q1 YoY % Revenue rose marginally as International Post and Parcel FY18/19 FY19/20 change revenue rose by 5.2% on the back of higher cross-border eCommerce-related delivery Revenue 186.0 187.3 +0.7% volumes. This was partially offset by 6.7% Domestic decline due to continued le
Slide 13: Logistics
Logistics Revenue was lower by 2.2% as eCommerce logistics revenue declined 7.4% due to exit of S$M certain customer contracts at Quantium Solutions, as well as the depreciation of the Q1 Q1 YoY % A$ against the S$ for Couriers Please. Logistics FY18/19 FY19/20 change Freight forwarding revenue rose
Slide 14: Property
Property S$M Q1 Q1 YoY % Revenue, which comprises commercial Property FY18/19 FY19/20 change property rental and the self-storage business, remained largely stable at Revenue 30.3 29.8 (1.5%) S$29.8 million. Profit on operating activities declined 2.3% Profit on operating activities 13.2 12.9 (2.3%)
Slide 15: U.S. Business
U.S. Business S$M Revenue rose 7.9%, due largely to higher Q1 Q1 YoY % freight revenues. However, outsourced U.S. Business FY18/19 FY19/20 change expenses to third party vendors for deliveries rose disproportionately, and contributed Revenue 51.5 55.5 +7.9% negatively to the business. Losses on oper
Slide 16: Outlook
Outlook 15
Slide 17: Outlook
Outlook With eCommerce volumes expected to continue to grow strongly, in particular in Asia Pacific, SingPost remains well-positioned to benefit over the long term. In Singapore, while eCommerce-related deliveries are expected to grow, the full benefits are being mitigated by a decline in letter mai
Slide 18: Thank You
Thank You 17
Slide 19: Supplementary information
Supplementary information 18
Slide 20: Group segment information
Group segment information From 1 April 2019, SingPost Group has reclassified the reporting of certain business units into four key business segments, namely Post and Parcel, Logistics, Property and U.S. Business (FY2018/19: Post and Parcel, Logistics, eCommerce and Property). • Post and Parcel segme
Slide 21: Adoption of SFRS(I) 16
Adoption of SFRS(I) 16 Singapore Financial Reporting Standards (International) 16 – Leases Before the adoption of SFRS(I) 16, commitments under operating leases S$M for future periods were not recognised by the Group as liabilities. Differences to Statement of Financial 1 Apr 19 On adoption of SFRS(
Slide 22: Underlying Net Profit Reconciliation Table
Underlying Net Profit Reconciliation Table S$’000 Q1 Q1 FY18/19 FY19/20 Profit attributable to equity holders 18,715 25,682 Exceptional items 5,962 (49) Fair value loss on warrants from an associated company 5,958 - Gain on disposal of property, plant and equipment (24) (51) M&A related professional