Singapore Post Ltd. · SGX:S08
Singapore Post — Morgan Stanley Asia Pacific Summit 2005
32 slides from Singapore Post's conference presentation, Nov 16, 2005
Slide 1: SGX Announcement: Presentation Slides - Morgan Stanley Asia Pacific Summit 2005
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 Company Presentation
Singapore Post Limited Company Presentation 16-17 November 2005 Morgan Stanley Asia Pacific Summit Singapore
Slide 3: Commitment to Creating Shareholder Value
Commitment to Creating Shareholder Value 1
Slide 4: Commitment to Shareholder Value
Commitment to Shareholder Value TSR of >120% over 2½ years ♦ Share price up nearly 100% since IPO in May 2003 ♦ Total 14.65 cents dividends paid out since IPO Share Price Performance Dividends Per Share Minimum S$1.19* 5.0 cents Up 98% since IPO Cents per share 4.2 4.2 5.0 60 cents 1.25 IPO Jul Oct
Slide 5: Enhanced Dividend Policy
Commitment to Shareholder Value Enhanced Dividend Policy ♦ Strong cash flow supports dividend policy ♦ Dividend payout of 80-90% of net profit or 5 cents per share, whichever is higher ♦ Quarterly dividend payments from Q1 FY2005/06 Net Operating Cashflow Quarterly Dividends 144.4 Q1 Interim 1.25 ce
Slide 6: Special Dividend
Special Dividend ♦ Special dividend — Special payout of 10 cents per share or about S$191 million — Books closure date: 4 January 2006 — Payment date: 16 January 2006 ♦ Rationale for special dividend — Aim to achieve a more optimal capital structure — Increasing shareholder returns while maintaining
Slide 7: Q2 & H1 FY2005/06 Results Highlights
Q2 & H1 FY2005/06 Results Highlights 5
Slide 8: Highlights – Q2 FY05/06 Group Results
Highlights – Q2 FY05/06 Group Results Q2 underlying performance* EBITDA $M 7.6% 6.7% 45.1 44.5 Operating Revenue 41.7 42.0 $M 12.6% 8.2% 103.0 Q1 Q2 96.8 Net Profit 91.5 89.4 $M 9.0% 5.2% 28.1 Q1 Q2 27.4 FY04/05 FY05/06 26.0 25.8 Q1 Q2 * Excluding exceptional items and depreciation impact from FY04/
Slide 9: Highlights – H1 FY05/06 Group Results
Highlights – H1 FY05/06 Group Results 1st half underlying performance* EBITDA $M 7.1% 89.6 83.7 Operating Revenue $M 10.4% 199.8 H1 FY04/05 H1 FY05/06 181.0 Net Profit $M 7.1% 55.5 H1 FY04/05 H1 FY05/06 51.8 H1 FY04/05 H1 FY05/06 * Excluding exceptional items and depreciation impact from 7 change in
Slide 10: Highlights – Segment Results
Highlights – Segment Results Logistics $M 20.2% 15.2 12.6 Mail 30.8% $M 10.1% 1.5 2.0 78.5 71.3 Q2 Q2 Q2 Q2 FY04/05 FY05/06 FY04/05 FY05/06 17.3% Retail 30.2 25.7 $M 18.5% 12.6 Q2 Q2 Q2 Q2 FY04/05 FY05/06 FY04/05 FY05/06 10.6 133.4% 1.6 0.7 Operating Revenue Q2 Q2 Q2 Q2 Operating Profit FY04/05 FY05
Slide 11: H1 FY05/06 Operating Expenses
H1 FY05/06 Operating Expenses ♦ Higher costs, namely direct costs, in tandem with growth in business $8.2M 12.1% 75.8 $3.1M 67.6 8.1% $M $0.4M 2.2% 41.0 $1.5M 37.9 38.0% 17.6 18.0 3.9 5.4 Direct variable costs Staff costs Selling & promotion Indirect costs expenses Direct costs 9
Slide 12: Quarterly Profit Margins
Quarterly Profit Margins Underlying performance * EBITDA Margins ♦ Slight margin decline from 46.6% 46.0% 45.8% 45.7% 45.7% 43.8% higher direct costs, as well as lower contributions from associates & JVs Q1 Q2 Q3 Q4 Operating Profit Margins Net Profit Margins 35.0% 35.3% 35.6% 33.7% 33.4% 34.5% 29.1
Slide 13: Enhancing the Core, Growing the Wings
Enhancing the Core, Growing the Wings …while remaining committed to our dividend policy 11
Slide 14: Defending and Growing Mail
Defending and Growing Mail ♦ Growth in all business lines – domestic mail, international mail and hybrid mail ♦ Benefiting from efforts and initiatives to grow Mail segment Domestic mail Direct mail initiatives, mailroom activities International mail Increased mailings from customers Hybrid mail Est
Slide 15: Mail – Revenue Breakdown
Mail – Revenue Breakdown Second Quarter Performance Q2 Q2 (S$M) Change FY04/05 FY05/06 Mail 71.3 78.5 10.1% 6.7% 48.7 45.6 $M 26.3 16.7% 22.5 3.2 3.5 11.1% Q2 FY04/05 Domestic mail International mail Hybrid mail Q2 FY05/06 First Half Performance H1 H1 (S$M) Change 7.1% FY04/05 FY05/06 98.0 91.4 Mail
Slide 16: Enhancing Logistics Business
Enhancing Logistics Business ♦ Expanding logistics’ regional network, complementing existing post to post network ♦ Forming strategic alliances and collaborations with partners in Singapore and the region Logistics Logistics Logistics Operating Revenue Operating Profit Operating Profit Margin $M $M
Slide 17: Logistics – Revenue Breakdown
Logistics – Revenue Breakdown Second Quarter Performance Q2 Q2 (S$M) Change FY04/05 FY05/06 Logistics 12.6 15.2 20.2% 12.9% 12.9 11.4 $M 2.2 90.3% 1.2 Speedpost Warehousing, fulfilment & Q2 FY04/05 distribution and Others Q2 FY05/06 First Half Performance H1 H1 (S$M) Change 10.9% FY04/05 FY05/06 24.
Slide 18: Leveraging Retail Network
Leveraging Retail Network ♦ Leveraging on existing capabilities and tri-channel retail network ♦ Prudent approach in growing new revenue streams ♦ Strong growth in financial services, retail products and vPOST transactions ♦ Financial services accounted for about 40% of Retail revenue increase Retai
Slide 19: Retail – Revenue Breakdown
Retail – Revenue Breakdown Second Quarter Performance Q2 Q2 (S$M) Change FY04/05 FY05/06 Retail 10.6 12.6 18.5% 32.3% 7.3 3.4% $M 5.5 5.1 5.3 Q2 FY04/05 Q2 FY05/06 Agency & others Inter-segment First Half Performance H1 H1 (S$M) Change FY04/05 FY05/06 25.8% Retail 20.9 24.0 14.9% 13.5 10.7 10.2 10.5
Slide 20: Financial Services Update
Financial Services Update Pawnbroking statistics (1H2004) Status: (source: Registry of Pawnbrokers): ♦Marketing via roadshows in communities ♦ Pawnbroking value: S$0.78bn where outlets are located, as well as ♦ No. of transactions: 1.66m AdMail to create awareness ♦ Oct 2004: 91 pawnshops ♦2 new out
Slide 21: Building on Strengths, Transforming SingPost
Building on Strengths, Transforming SingPost 19
Slide 22: Building on Strengths: Postal Rates
Building on Strengths Postal Rates Standard letter rate <25g (US$) ♦ Resilient core business model 0.80 0.70 Japan Germany 0.60 UK ♦ Best in class in global 0.50 Netherlands benchmarking 0.40 NZ Australia US 0.30 0.20 Korea Hong Kong 0.10 Singapore 20,000 24,000 28,000 32,000 36,000 40,000 GDP per c
Slide 23: Building on Strengths: Operational Efficiency
Building on Strengths Percentage of Mail Delivered* Next Working Day ♦ Strong operational efficiency 99.8% 99.9% 99.6% ♦ Service excellence 98.6% 98.9% IDA standard raised from 98% to 99% FY00/01 FY01/02 FY02/03 FY03/04 FY04/05 * Within CBD Revenue-to-Staff Costs Productivity Indicators 4.8 5,500 3,
Slide 24: Quarterly Performance Overview
Quarterly Performance Overview ♦ Growth momentum in first half — Building on strong foundation — Transforming SingPost Quarterly Operating Revenue Quarterly EBITDA* $M 12.6% $M 7.6% 8.2% 6.7% 0.5% 2.6% 3.2% 2.0% (0.7)% (2.4)% (0.4)% 6.7% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY03/04 FY04/05 FY05/06 FY03/04 FY04/0
Slide 25: Transforming SingPost through Total System Management
Transforming SingPost Transforming SingPost through Total System Management ♦ Total System Management — A structured process and effective communication tool used to drive SingPost’s transformation — Helps move the company from vision to action — Energises the whole network in pursuit of the vision
Slide 26: Rejuvenating, Reinventing
Transforming SingPost Rejuvenating, Reinventing ♦ Creative and innovative ways of delivering value to customers ♦ Recasting existing products and business in new forms MyStamp rediscovering stamps SAMplus repackaging SAM and smart lockers Friday Mailbox Surprise! promoting direct mail Killiney Post
Slide 27: Focus on Service plus Sales & Marketing
Transforming SingPost Focus on Service plus Sales & Marketing ♦ Focus on service quality — Customer care initiatives (centralised call centre; service ambassadors) ♦ Proactive drive to attract and acquire customers — Enlarged sales & marketing team — Sales training, incentive schemes for front-line
Slide 28: Focus on Process and Costs
Transforming SingPost Focus on Process and Costs ♦ Continual pursuit of efficiencies — Benefits from operational review ♦ Process re-engineering — Reducing administrative work by sales team and increasing ‘selling time’ — Priority given to sales-generating IT projects — Investing in equipment and te
Slide 29: Focus on Employees
Transforming SingPost Focus on Employees ♦ Employee satisfaction — Key performance indicators — Performance related compensation ♦ Communication 27
Slide 30: Summary
OF ips We make it our business to deliver Summary 28
Slide 31: Yield plus Growth
Yield plus Growth ♦ Attractive market characteristics Strong, ♦ Dominant market position Resilient ♦ Stable regulatory environment Core Business Model ♦ High barriers to entry ♦ Enhancing core business and operations ♦ Pursuing growth strategy with prudent capital Growing our investment Wings ♦ Leve
Slide 32: Thank You
OF ips We make it our business to deliver Thank You 30
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