q4 & full year fy2011/12 results presentation · q4 fy2011/12 fy2011/12 total 6.25¢ per share...
TRANSCRIPT
27 April 2012
Q4 & Full Year FY2011/12 Results Presentation
Financial year ended 31 March 2012
Singapore Post Limited (Reg. No. 199201623M)
ContentsExecutive summaryGroup resultsSegment resultsFinancial position, cash flows, dividend
Developments & outlook
The following presentation contains forward looking statements by themanagement of Singapore Post Limited ("SingPost"), relating to financial trendsfor future periods, compared to the results for previous periods.
Some of the statements contained in this presentation that are not historicalfacts are statements of future expectations with respect to the financialconditions, results of operations and businesses, and related plans andobjectives. Forward looking information is based on management's currentviews and assumptions including, but not limited to, prevailing economic andmarket conditions. These statements involve known and unknown risks anduncertainties that could cause actual results, performance or events to differmaterially from those in the statements as originally made. Such statements arenot, and should not be construed as a representation as to future performanceof SingPost. In particular, such targets should not be regarded as a forecast orprojection of future performance of SingPost. It should be noted that the actualperformance of SingPost may vary significantly from such statements.
“$” means Singapore dollars unless otherwise indicated.
Forward-looking Statements – Important Note
3
Executive summary
FY2011/12 – Getting ready for the future
Revenue
Proposed final dividend
$145.9M3.1%
Operating expenses
$119.4M13.7%
Q4 FY2011/12 FY2011/12
Total 6.25¢ per share
$578.5M2.2%
$446.1M8.3%
Underlying net profit
$26.8M23.1%
$135.4M9.5%
2.50¢per share
• Performance impacted by industry challenges, business environment and cost pressures
• Significant investments to build business in SingPost’s accelerated transformation
• Commitment to shareholders unchanged
4
Group results: Q4 FY2011/12 P&L highlights
* Profit after tax attributable to equity holders of the Company; underlying net profit excludes one-off items.
$M Q4 FY10/11
Q4 FY11/12
% change
Revenue 141.5 145.9 +3.1%
Other income 10.1 14.3 +41.0%
Operating expenses 105.1 119.4 +13.7%
Operating profit 46.6 40.8 (12.4%)
Share of profit/(loss) of assoc & JVs (0.2) 0.2 n/m
Net finance costs 2.1 3.8 +83.1%
Net profit* 37.0 30.6 (17.4%)
Underlying net profit* 34.8 26.8 (23.1%)
Growth in Logistics and Retail; steady Mail
Reversal of mark-to-market loss on ELN; higher recognition of deferred gain on IPR
Investment in resources; cost pressures
Contributions from new associates
Near term impact from investing for the future
5
Group results: FY2011/12 P&L highlights
* Profit after tax attributable to equity holders of the Company; underlying net profit excludes one-off items.
$M FY10/11 FY11/12 % change
Revenue 565.8 578.5 +2.2%
Other income 52.5 50.5 (3.8%)
Operating expenses 411.8 446.1 +8.3%
Operating profit 206.6 182.9 (11.4%)
Share of profit/(loss) of assoc & JVs (0.5) 0.7 n/m
Net finance costs 11.0 9.9 (9.6%)
Net profit* 161.0 142.0 (11.8%)
Underlying net profit* 149.6 135.4 (9.5%)
Growth in Logistics and Retail; flat Mail contributions
Non-cash mark-to-market loss on ELN; lower recognition of deferred gain on IPR
Investment in resources; cost pressures
Contributions from new associates
Lower interest rates
Year of investing for the future
Impact on profitability as we invested for the future
6
Group results: Revenue breakdown
Revenue by business segments Revenue by geographic distribution
Note: FY10/11 figures in italics and brackets
Building a more balanced revenue and earnings portfolio
• Increasing proportion of contributions from faster-growing Logistics and Retail segments
• Growth in regional entity, Quantium Solutions, boosted overseas contributions
7
Group results: Q4 FY2011/12 Expenses
Impact of investing in resources for growth and other cost pressures
Operating expenses
Labour & related expenses
Volume related expenses
Administrative and other expenses
Selling expenses
Depreciation
$47.5M7.8%
$41.5M10.4%
$18.1M12.5%
$8.7M93.8%
$3.6M28.7%
Labour & related39.8%
Admin & others15.1%
Dep7.3%
Selling3.0%
Volume related34.8%
$119.4M13.7%
8
Segment results: Mail Q4 FY2011/12
Slowdown in Mail revenue; higher business costs
Revenue Operating profit$96.4M0.2%
Revenue breakdown: domestic mail decline offset by growth in international mail and philatelic
Domestic mail
International mail
Hybrid mail
Philatelic
$29.9M13.0%
$58.3M2.8%
$31.7M5.4%
$4.7M1.3%
$1.6M20.2%
9
Segment results: Mail FY2011/12
Flat Mail revenue; higher business costs
Revenue Operating profit$385.4M0.0%
Revenue breakdown: domestic mail decline offset by growth in international mail, hybrid mail and philatelic
Domestic mail
International mail
Hybrid mail
Philatelic
$133.1M6.0%
$237.7M0.5%
$123.5M0.5%
$19.2M0.8%
$5.0M3.5%
10
Segment results: Logistics Q4 FY2011/12
Continued revenue growth; impact of investments in resources
Revenue
Revenue breakdown: improvements in all business lines
Quantium Solutions
Speedpost
Others*
Operating profit
$35.1M7.4%
$16.1M10.4%
$2.8M5.7%
$54.0M8.2%
$0.4M79.3%
* vPOST, Transhipment
11
Segment results: Logistics FY2011/12
Investing in resources to build regional logistics business
Revenue
Revenue breakdown: improvements in all business lines
Quantium Solutions
Speedpost
Others*
Operating profit
$141.4M8.7%
$62.2M7.3%
$11.6M14.4%
$215.3M8.6%
$8.9M35.2%
* vPOST, Transhipment
12
Segment results: Retail Q4 FY2011/12
Retail – agency, products and others *
Financial services **
Inter-segment
Operating profitRevenue $18.2M9.2%
$2.9M48.0%
$5.8M8.6%
$5.8M20.9%
$6.5M0.8%
Improved business performance by retail and financial services
Revenue breakdown: agency services decline offset by growth in retailproducts, Clout Shoppe and financial services**
* Including Clout Shoppe** SpeedCash sold in March 2011
13
Segment results: Retail FY2011/12
Retail – agency, products and others *
Financial services **
Inter-segment
Operating profitRevenue $69.4M3.8%
$9.8M3.3%
$21.8M0.9%
$21.0M11.3%
$26.6M2.4%
Growth in performance despite higher business costs
Revenue breakdown: growth in retail products, Clout Shoppe offsetlower agency, financial services** contributions
* Including Clout Shoppe** SpeedCash sold in March 2011
14
Financial position, cash flows, dividend
Strong financial positionHealthy cash flows
@ 31 Mar 2011
@ 31 Mar 2012
Shareholders’ equity $326.1M $659.8M
Borrowings $503.0M $505.7M
(Net debt)/Net cash ($164.3M) $111.6M
Debt to equity 51.4% 76.6%
EBITDA to interest expenses 16.3x 17.2x
FY10/11 FY11/12
Net cash from operating activities 186.9 176.6
Net cash used in investing activities (98.1) (77.4)
Net cash provided by/(used in) financing activities (140.3) 179.4
Net increase/(decrease) in cash (51.5) 278.6
Cash & cash equivalents 338.7 617.4
Proposed Final Dividend2.5 cents per share
15
Developments & outlook
Challenges in all business segments• Mail revenue slowdown• Cross border mail decline in Logistics• Rising costs
Opportunities for SingPost• E-commerce• E-fulfilment• Regional logistics
16
Developments & outlook
Getting Ready for the Future
(B) Focus on increasing productivity
• Managing labour cost increases through productivity enhancements
• Exploring new technologies, resources and infrastructure to furtherimprove productivity
(C) Continued emphasis on Singapore market
• Singapore market remains important – home base with >80%revenue contribution
• Committed to social obligations and Quality of Service standards
• New services in the pipeline
(A) Transformation programme: Ready for the future
• Continued execution through to FY2014/15
• Driving growth – organically and inorganically; regional
• Focus on enablers – people, IT and operations
• 5 business pillars with specific growth initiatives STRONG ENABLERS: IT, HR, OPS
A value provider which fulfills customer needs with lean and innovative solutions in five businesses
STRONG, REGIONAL ANDDIVERSIFIED GROUP
Mail (Postal)
Digital Services Logistics e-Commerce Retail &
Fin’l Svcs
The complete set of financial statements is available on SGXNET and our website at www.singpost.com.