Singapore Post Ltd. · SGX:S08
Singapore Post — Q3 FY2016/17 Earnings Presentation
32 slides from Singapore Post's earnings presentation, Feb 10, 2017
Slide 1: Q3 & 9M FY2016/17 Financial Results
Q3 & 9M FY2016/17 Financial Results 10 February 2017
Slide 2: Agenda
Agenda Q3 & 9M FY2016/17 Financials eCommerce-Related Revenues Segmental Results Business & Corporate Updates Summary & Outlook Supplementary Information The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial tren
Slide 3: Q3 FY2016/17: Underlying net profit declined 28.5%
Q3 FY2016/17: Underlying net profit declined 28.5%, due largely to investments in business transformation and decline in domestic letter mail volumes Q3 FY2016/17 P&L, $M YoY Q3 FY16/17 Q3 FY15/16 % change Revenue 369.4 316.2 +16.8% Revenue growth due to inclusion of US eCommerce acquisitions Other
Slide 4: Revenue movement
Revenue movement Q3 FY2015/16 vs. Q3 FY2016/17 Revenue performance, $M +16.8% 369.4 Inclusion of US acquisitions – TradeGlobal 316.2 81.1 +106.8% and Jagged Peak1 eCommerce 39.2 Led by increased eCommerce Logistics volumes on Logistics 162.2 171.3 +5.6% the network Postal 143.4 +2.9% Growth in Inter
Slide 5: Increased expenses with consolidation of acquisitions and change in business mix
Increased expenses with consolidation of acquisitions and change in business mix Total expenses Q3 FY2016/17 breakdown, $M Q3 FY16/17 Q3 FY15/16 YoY % change Labour & related 88.4 74.0 +19.4% Higher headcount post acquisitions Volume-related 196.2 151.9 +29.2% Largely due to higher International Tra
Slide 6: Operating Profit
Operating Profit Q3 FY2015/16 vs. Q3 FY2016/17 Operating Profit performance, $M -31.7% 54.6 Reflects costs incurred in relation to the Regional Logistics 12.7 37.3 eCommerce Logistics Hub, as well as pricing 8.8 (30.2%) pressures in the eCommerce Logistics space Postal Largely due to a decline in Do
Slide 7: Q3 FY2016/17 Underlying Net Profit movement
Q3 FY2016/17 Underlying Net Profit movement Q3 FY2015/16 vs. Q3 FY2016/17 Underlying Net Profit performance, $M Investments in transformation ($13.6m) Postal ($2.7m) 43.9 2.8 10.2 Costs related to Regional 0.1 0.5 3.7 31.4 2.7 eCommerce Logistics Hub Largely US Loss of rental Assoc / JV eCommerce fr
Slide 8: 9M FY2016/17 Profit & Loss Statement
9M FY2016/17 Profit & Loss Statement 9M FY2016/17 P&L, $M YoY 9M FY16/17 9M FY15/16 % change Revenue 1,024.5 834.0 +22.8% Revenue growth driven by the inclusion of US acquisitions Other income and gains Rental and property-related income 27.8 29.9 (7.1%) Operating Profit and Net Profit Miscellaneous
Slide 9: 9M FY2016/17 Underlying Net Profit movement
9M FY2016/17 Underlying Net Profit movement 9M FY2015/16 vs. 9M FY2016/17 Underlying Net Profit performance, $M Investments in transformation ($27.6m) Postal ($6.5m) 121.8 6.1 16.5 Costs related 2.1 2.9 94.2 to Regional 6.5 6.6 eCommerce Largely US Logistics Hub Loss of rental Assoc / JV eCommerce f
Slide 10: Balance sheet & financial indicators
Balance sheet & financial indicators $M, unless otherwise stated Cash flow 9M FY16/17 9M FY15/16 Operating cash flow (before working capital changes) 158.1 162.3 Net cash from operating activities Changes in working capital 24.0 (60.7) rose to $152.5million, boosted by Net cash provided by operating
Slide 11: Agenda
Agenda Q3 & 9M FY2016/17 Financials eCommerce-Related Revenues Segmental Results Business & Corporate Updates Summary & Outlook Supplementary Information The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial tren
Slide 12: eCommerce-related revenues now 50.3% of Group revenue
eCommerce-related revenues now 50.3% of Group revenue Revenue performance, 9M FY2015/16 vs 9M FY2016/17, $M 9M FY15/16 9M FY16/17 1,024.5 Group Revenue 834.0 eCommerce 508.8 $210.4M Non eCommerce eCommerce 555.8 41% $55.1M related 20% 50.3% 33.4% $515.7M Postal $278.1M 42% Postal 31% $117.1M $157.6M
Slide 13: Overseas revenue now 51.4% of Group revenue
Overseas revenue now 51.4% of Group revenue Group revenue footprint 9M FY2015/16 vs 9M FY2016/17, $M 1,024.5 Group Revenue 834.0 497.8 Europe 10% Domestic 484.8 51.4% US 36% Asia 41.9% 27% $526.7M 526.7 Overseas 349.1 Australia 27% 9M FY15/16 9M FY16/17 Differences in total due to rounding 12
Slide 14: Agenda
Agenda Q3 & 9M FY2016/17 Financials eCommerce-Related Revenues Segmental Results Business & Corporate Updates Summary & Outlook Supplementary Information The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial tren
Slide 15: Postal: Q3 FY2016/17 Performance
Postal: Q3 FY2016/17 Performance $M Postal Q3 FY16/17 Q3 FY15/161 YoY % change Domestic mail revenue and OP declined in line with lower business letter mail Revenue 143.4 139.3 +2.9% volumes, in particular with financial institutions pushing e-statements. Operating profit 38.5 41.3 (6.6%) Internatio
Slide 16: Logistics: Q3 FY2016/17 Performance
Logistics: Q3 FY2016/17 Performance $M Logistics Q3 FY16/17 Q3 FY15/161 YoY % change Revenue rose 5.6%, driven by higher contribution from Couriers Please and Revenue 171.3 162.2 +5.6% Quantium Solutions from increased eCommerce-related activities. Operating profit 8.8 12.7 (30.2%) OP margin 5.2% 7.
Slide 17: eCommerce: Q3 FY2016/17 Performance
eCommerce: Q3 FY2016/17 Performance $M eCommerce Q3 FY16/17 Q3 FY15/161 YoY % change eCommerce revenue rose with the inclusion of US acquisitions TradeGlobal Revenue 81.1 39.2 +106.8% and Jagged Peak. Operating profit (8.4) 1.8 N.M. TradeGlobal faced cost pressures and challenges, while Jagged Peak
Slide 18: Agenda
Agenda Q3 & 9M FY2016/17 Financials eCommerce-Related Revenues Segmental Results Business & Corporate Updates Summary & Outlook Supplementary Information The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial tren
Slide 19: Update on US eCommerce performance over the holiday season
Update on US eCommerce performance over the holiday season Jagged Peak : a successful holiday season • We had good growth in volumes and revenue, and generated positive earnings for the Group. • Jagged Peak also achieved new customer wins. TradeGlobal – delivered customer satisfaction; revenue and o
Slide 20: Completion of Second Investment Agreement with the Alibaba Group
Completion of Second Investment Agreement with the Alibaba Group Deepening strategic partnership Structure upon completion • On 27 October 2016, Alibaba invested S$86.2 million Other shareholders Singtel Alibaba Group for a 34% stake in Quantium Solutions International, with SingPost owning the rema
Slide 21: Appointment of Group CEO
Appointment of Group CEO Mr Paul Coutts was appointed as Group CEO, and as a Non-Independent Director of the SingPost Board effective 1 June 2017. • More than 20 years of experience in C-suite positions at major global logistics and postal companies. • Well positioned to provide overall leadership,
Slide 22: Agenda
Agenda Q3 & 9M FY2016/17 Financials eCommerce-Related Revenues Segmental Results Business & Corporate Updates Summary & Outlook Supplementary Information The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial tren
Slide 23: Q3 FY2016/17 Performance
Q3 FY2016/17 Performance Revenue rose with the inclusion of US eCommerce acquisitions. Underlying net profit declined largely due to • operating losses in the US eCommerce business; • costs related to the new Regional eCommerce Logistics Hub; and • lower Postal operating profit due to lower domestic
Slide 24: Outlook
Outlook SingPost continues to build its capabilities to transform from a Singapore postal company into a leading eCommerce logistics provider, which is fundamental to securing its future. SingPost has been working to integrate acquisitions and this will remain a priority. In the Postal segment, Dome
Slide 25: Outlook (continued)
Outlook (continued) The eCommerce segment operates in an environment where margins are under pressure amid intense competition and changing consumer behaviour. The Group is facing challenges in the operating environment in the US. For the nine months ended 31 December 2016, TradeGlobal has not achie
Slide 26: Outlook (continued)
Outlook (continued) The redevelopment of SPC retail mall is expected to be completed around mid-2017, and leasing of the mall is on track. The Group continues to forgo rental income during the redevelopment. For the rest of FY2016/17, there will be residual capital expenditure committed for the rede
Slide 27: Agenda
Agenda Q3 & 9M FY2016/17 Financials eCommerce-Related Revenues Segmental Results Business & Corporate Updates Summary & Outlook Supplementary Information The following presentation contains forward looking statements by the management of Singapore Post Limited (“SingPost”) relating to financial tren
Slide 28: Postal: 9M FY2016/17 Performance
Postal: 9M FY2016/17 Performance $M Postal 9M FY16/17 9M FY15/161 YoY % change Revenue 407.3 400.3 +1.8% Operating profit 113.9 120.4 (5.4%) OP margin 28.0% 30.1% Revenue breakdown 9M FY16/17 9M FY15/161 YoY % change Domestic mail2 187.3 195.6 (4.3%) International mail 197.5 165.4 +19.4% Post office
Slide 29: Logistics: 9M FY2016/17 Performance
Logistics: 9M FY2016/17 Performance $M Logistics 9M FY16/17 9M FY15/161 YoY % change Revenue 482.1 458.4 +5.2% Operating profit 21.0 27.2 (22.7%) OP margin 4.4% 5.9% Revenue breakdown 9M FY16/17 9M FY15/161 YoY % change Quantium Solutions 84.4 80.8 +4.5% Couriers Please 107.4 93.3 +15.1% SP Parcels
Slide 30: eCommerce: 9M FY2016/17 Performance
eCommerce: 9M FY2016/17 Performance $M eCommerce 9M FY16/17 9M FY15/161 YoY % change Revenue 210.4 55.1 +281.7% Operating profit (18.7) (2.2) @ OP margin (8.9%) (4.0%) Revenue breakdown 9M FY16/17 9M FY15/161 YoY % change TradeGlobal 101.7 29.4 +246.1% Jagged Peak 82.6 - N.M. SP eCommerce2 26.1 25.7
Slide 31: 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 32: Thank you
Thank you