Singapore Post Ltd. · SGX:S08
Singapore Post — FY2014/15 Earnings Presentation
33 slides from Singapore Post's earnings presentation, May 12, 2015
Slide 1: Q4 & Full Year FY2014/15 Financial Results
Q4 & Full Year FY2014/15 Financial Results Quarter January to March 2015 Financial year ended 31 March 2015 12 May 2015
Slide 2: Agenda
Agenda ▪ Executive Summary ▪ Group Financials ▪ Business Overview ▪ Building Our Capabilities ▪ Outlook 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
Slide 3: Executive Summary
Executive Summary Solid performance for Q4 and full year FY2014/15, with growth in ecommerce related businesses and inclusion of new subsidiaries. Continued challenges in traditional postal business, especially declining volumes and rising operating costs in domestic mail. Good progress in tra
Slide 4: Group Financials – Highlights
Group Financials – Highlights Solid financial performance achieved in Q4 and FY2014/15. Continued growth in ecommerce related activities offsetting declines in traditional postal business. Boost from inclusion of new subsidiaries. Higher expenses due to inclusion of new subsidiaries, rising bu
Slide 5: FY2014/15 P&L
FY2014/15 P&L Solid financial performance in FY14/15 despite ongoing investment in transformation YoY % FY13/14 FY13/14 Inclusion of new $M FY14/15 (previously (restated) change stated) subsidiaries, ecommerce related Revenue 919.6 821.1 +12.0% 821.1 growth offset decline in traditional postal Renta
Slide 6: Effect of Change in Accounting Policy on Investment Properties on Financial Statements
Effect of Change in Accounting Policy on Investment Properties on Financial Statements $M Cost method Fair value method 31 Mar 15(1) 31 Mar 14(2) 31 Mar 15 31 Mar 14 Adjustment of value of Investment properties 232.2 231.4 638.8 629.1 investment properties Property, plant & equipment 308.5 234.0 330
Slide 7: Q4 FY2014/15 P&L
Q4 FY2014/15 P&L Solid underlying performance in Q4 Q4 Q4FY13/14 Q4 YoY % $M FY13/14 (previously FY14/15 change stated) (restated) Inclusion of new Revenue 248.7 193.3 +28.7% 193.3 subsidiaries, ecommerce related Rental & property-related income 10.9 10.9 (0.6%) 10.9 revenue growth Miscellaneous (2.
Slide 8: Regional Revenue Breakdown
Regional Revenue Breakdown Continued growth in share of overseas revenue Local Overseas FY14/15: 67.5% FY14/15: 32.5% FY13/14: 72.2% FY13/14: 27.8% Overseas revenue amounted to $298.8M or 32.5% of Group revenue Growth in regional business; overseas acquisitions 30.8% YoY growth in overseas revenue c
Slide 9: Segmental Revenue Breakdown
Segmental Revenue Breakdown Growing share of Logistics business with continued expansion in ecommerce logistics Retail & eCommerce FY14/15: 7.0% FY13/14: 7.3% Proportion of Logistics expanded to Logistics Mail 42.2% from 37.2% with the Group’s FY14/15: 42.2% FY14/15: 50.8% push into ecommerce logist
Slide 10: Mail & Digital Services: Q4 FY2014/15 Performance
Mail & Digital Services: Q4 FY2014/15 Performance Mail & Digital Services segment performance Q4 Q4 YoY % $M FY14/15 FY13/14 change Revenue 123.5 123.4 +0.1% Operating profit 36.9 33.2 +11.0% OP margin 29.9% 26.9% Continued challenges in traditional postal business and increased competition in inter
Slide 11: Logistics: Q4 FY2014/15 Performance
Logistics: Q4 FY2014/15 Performance Logistics segment performance Q4 Q4 YoY % $M FY14/15 FY13/14 change Revenue 136.3 79.0 +72.5% Operating profit 5.0 2.1 +134.0% OP margin 3.6% 2.7% Inclusion of new subsidiaries and growth in ecommerce related business Logistics revenue breakdown underpinned Logist
Slide 12: Retail & eCommerce: Q4 FY2014/15 Performance
Retail & eCommerce: Q4 FY2014/15 Performance Retail & eCommerce segment performance Q4 Q4 YoY % $M FY14/15 FY13/14 change Revenue 24.0 22.0 +9.1% Operating profit 2.5 0.7 255.8% OP margin 10.4% 3.2% Growth in ecommerce business with customer acquisitions and higher traffic; declines in traditional a
Slide 13: Total Expenses: Q4 FY2014/15
Total Expenses: Q4 FY2014/15 Revenue vs expenses growth Q4 Higher expenses with consolidation of Q4 YoY % $M FY13/14 new subsidiaries, ongoing FY14/15 change (restated) expenditure for transformation, and Revenue 248.7 193.3 +28.7% increased costs in productivity and service improvements for postal
Slide 14: Financial Position and Cash Flow
Financial Position and Cash Flow Financial position $M Mar 15 Mar 14 Mar 14 (previously (restated) stated) NAV (cents per share) 68.4 58.5 36.5 Issue of new shares and transfer of treasury shares to Alibaba Ordinary shareholders’ equity 1,117.2 765.5 346.8 Investment Limited; fair value gains follow
Slide 15: Dividends
Dividends FY2014/15 dividends Quarter Dividend per share Q1 interim 1.25 ¢ Proposed final dividend of 2.5¢ per share for Q4 FY2014/15 Q2 interim 1.25 ¢ To be approved by shareholders at AGM Q3 interim 1.25 ¢ Total annual dividend of 6.25¢ for Q4 final – proposed 2.50 ¢ FY2014/15 Total 6.25 ¢ 14
Slide 16: Business Overview
Business Overview Extensive business developments and transformation initiatives across the entire organisation. Good business momentum in the Group’s ecommerce related activities. Growing contributions from eCommerce related revenue with new customers and traffic growth. 15
Slide 17: Developments over FY2014/15
Developments over FY2014/15 Focus on productivity and service improvements in postal business M&A activities New mail sorting centre 15 new-generation integrated 24/7 Postage rate post offices increase Process & technology Innovations Investments in infrastructure Rollout of POPStations Mobile apps
Slide 18: Revenue Breakdown – eCommerce vs Non eCommerce
Revenue Breakdown – eCommerce vs Non eCommerce Continued growth in ecommerce related revenue In $M +12.0% +9.5% 919.6 +18.9% 821.1 662.4 604.9 18.9% YoY growth in ecommerce 216.2 257.2 related revenue Est'd ecommerce Est'd non-ecommerce Group revenue Non-ecommerce revenue growth related revenue rela
Slide 19: eCommerce Customers
eCommerce Customers Over 1,000 ecommerce customers across the Group Continued growth in ecommerce customers across the business segments Increase in warehousing and delivery volumes from new customers and customer growth Mono brand sites operating across 9 countries in Asia Pacific; new client
Slide 20: Building our Capabilities, Investing in the Future
Building our Capabilities, Investing in the Future Good progress in building and strengthening the Group’s ecommerce logistics solutions network in Asia Pacific. Focusing on development of regional warehousing and last mile delivery networks. Increase in capital expenditure and operating costs
Slide 21: Updates on eCommerce Logistics Network Development
Updates on eCommerce Logistics Network Development Freight, Customs & Warehousing & Last Mile Delivery eCommerce Web Regulations Management Fulfilment & Returns Services Integration of acquisitions by Expanding Quantium Building regional end- Extended SP eCommerce’s Famous Holdings: Solutions’ regio
Slide 22: Warehousing Network Development
Warehousing Network Development Warehousing network Country Set-up Consolidating two warehouses in 19 warehousing facilities totalling Australia with investment in automation Asia Pacific approx. 33,000 sqm Relocating and expanding warehouse in 5 warehouses in Singapore; New Zealand - SE Asia 6
Slide 23: Last Mile Delivery Network Development
Last Mile Delivery Network Development Last mile delivery network Country Set-up Installed 100 POPStations in Singapore as scheduled, and targeting 200 Singapore Parcel network comprising couriers and POPStations Developing regional last mile delivery Singapore More than 100 POPStations installe
Slide 24: Good Progress in Integration of Couriers Please
Good Progress in Integration of Couriers Please Actively working on synergies and growth together Alignment: Aligning vision, values and culture; incorporating best practices Active collaboration on synergies: Channelling QS Australia deliveries through Couriers Please; customer service; human resou
Slide 25: Outlook
Outlook Good progress in the Group’s transformation to be a regional ecommerce logistics operator. Strategic investments in M&As, capital expenditure to continue as part of growth strategy for eCommerce Logistics. Driving productivity and service improvements, innovation in Mail & Digital Serv
Slide 26: Outlook
Outlook Regional Leader in eCommerce Logistics & Trusted Communications Accelerating transformation, with increasing investments in infrastructure and resources, and M&As to develop the Group’s regional eCommerce Logistics business and network. Focused on productivity, innovation and service qua
Slide 27: The complete set of financial statements is available on SGXNET and our website
The complete set of financial statements is available on SGXNET and our website at www.singpost.com. 26 26
Slide 28: Appendix
APPENDIX 27 27
Slide 29: eCommerce Market Potential
eCommerce Market Potential 2016F Asia Pacific ecommerce logistics market US$175 billion Source: Forrester/Transport Intelligence 2012-2016 CAGR of 20.5% in Asia Pacific ecommerce logistics market Source: Forrester/Transport Intelligence 2016F Asia Pacific B2C ecommerce sales US$675 billion Source: e
Slide 30: Mail & Digital Services: FY2014/15 Performance
Mail & Digital Services: FY2014/15 Performance Mail & Digital Services segment performance YoY % $M FY14/15 FY13/14 change Revenue 500.3 491.0 +1.9% Operating profit 144.0 142.6 +0.9% OP margin 28.8% 29.1% Mail & Digital Services revenue breakdown YoY % $M FY14/15 FY13/14 change Domestic mail 248.7
Slide 31: Logistics: FY2014/15 Performance
Logistics: FY2014/15 Performance Logistics segment performance YoY % $M FY14/15 FY13/14 change Revenue 464.8 368.5 +26.1% Operating profit 21.5 14.2 +52.1% OP margin 4.6% 3.8% Logistics revenue breakdown YoY % $M FY14/15 FY13/14 change Quantium Solutions 202.9 160.6 +26.3% Famous Holdings 167.9 119.
Slide 32: Retail & eCommerce: FY2014/15 Performance
Retail & eCommerce: FY2014/15 Performance Retail & eCommerce segment performance YoY % $M FY14/15 FY13/14 change Revenue 92.0 86.7 +6.2% Operating profit 9.7 7.5 +30.1% OP margin 10.6% 8.6% Retail & eCommerce revenue breakdown YoY % $M FY14/15 FY13/14 change eCommerce 26.8 17.9 +49.9% Financial serv
Slide 33: Total Expenses: FY2014/15
Total Expenses: FY2014/15 Revenue vs expenses growth FY13/14 YoY % $M FY14/15 Higher expenses with consolidation of (restated) change new subsidiaries, productivity and Revenue 919.6 821.1 +12.0% service improvements for postal business, and transformation Total expenses 789.4 687.1 +14.9% initiativ