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Name of Announcer * SINGAPORE POST LIMITED
Company Registration No. 199201623M
Announcement submitted on behalf of SINGAPORE POST LIMITED
Announcement is submitted with respect to *
SINGAPORE POST LIMITED
Announcement is submitted by * Leong Chee Sian (Ms)
Designation * Company Secretary
Date & Time of Broadcast 27-Jan-2006 17:08:47
Announcement No. 00052
>> Announcement DetailsThe details of the announcement start here ...
Announcement Title * Presentation Slides - SingPost Group's unaudited results for the third quarter and nine months ended 31 December 2005
Description Attached for information are the presentation slides for the briefing to analysts on 27 January 2006 on SingPost Group's unaudited results for the third quarter and nine months ended 31 December 2005.
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PresentationSlides-Q3FY0506.pdf
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Page 1 of 1MISCELLANEOUS
27/01/2006http://info.sgx.com/webcorannc.nsf/vwprint/26603BF8FE75C26B48257102001117D0?OpenDocum...
Singapore Post LimitedSingapore Post Limited
Quarter 3 & 9Quarter 3 & 9--Month FY2005/06 ResultsMonth FY2005/06 Results
27 January 200627 January 2006
1
Note Note –– Forward Looking StatementsForward Looking Statements
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 historical facts are statements of future expectations with respect to the financial conditions, results of operations and businesses, and related plans and objectives. Forward looking information is based on management's current views and assumptions including, but not limited to, prevailing economic and market conditions. These statements involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the statements as originally made. Such statements are not, and should not be construed as a representation as to future performance of SingPost. In particular, such targets should not be regarded as a forecast or projection of future performance of SingPost. It should be noted that the actual performance of SingPost may vary significantly from such targets.
“$” means Singapore dollars unless otherwise indicated.
2
AgendaAgenda
♦Highlights
— Results Highlights
— Business Highlights
♦ Financial Results
♦ Segmental Overview
♦Cash Flow, Dividends
♦Outlook
♦ Summary
3
Highlights: Q3 FY05/06 Group ResultsHighlights: Q3 FY05/06 Group Results
Q3 underlying performance*Q3 underlying performance* EBITDA
46.0
42.041.7
49.0
44.5 45.1
Q1 Q2 Q3
6.5%$M
6.7% 7.6%
Operating Revenue
91.589.4
100.5
108.0
96.8
103.0
Q1 Q2 Q3
8.2%
7.4%$M
12.6%
Net Profit
28.0
25.826.0
30.7
28.127.4
Q1 Q2 Q3
10.0%$M
5.2% 9.0%
FY04/05FY05/06
* Excluding exceptional items and depreciation impact from change in assets’ useful lives
4
Highlights: 9M FY05/06 Group ResultsHighlights: 9M FY05/06 Group Results
9M underlying performance*9M underlying performance* EBITDA
129.6
138.6
9M FY04/05 9M FY05/06
6.9%$M
Operating Revenue
281.5
307.8
9M FY04/05 9M FY05/06
9.4%$M
Net Profit
79.7
86.2
9M FY04/05 9M FY05/06
$M
8.1%
* Excluding exceptional items and depreciation impact from change in assets’ useful lives
5
Highlights: Q3 FY05/06 Segment ResultsHighlights: Q3 FY05/06 Segment Results
Logistics
2.03.0
13.916.0
$M15.3%
49.8%
Q3 FY04/05
Q3 FY05/06
Q3 FY04/05
Q3 FY05/06
29.4
79.2 81.8
33.0
3.4%
12.3%
Q3 FY04/05
Q3 FY05/06
Q3 FY04/05
Q3 FY05/06
$M
Retail
2.1 2.7
11.913.2
$M10.8%
27.4%
Q3 FY04/05
Q3 FY05/06
Q3 FY04/05
Q3 FY05/06
Operating RevenueOperating Profit
6
Business Highlights Business Highlights –– Q3 InitiativesQ3 Initiatives
♦ Enhanced service offerings on vPOST- vSHOP, an online shopping mall- vConcierge, shopping on behalf of
customers♦ Delivery/shipping service to customers
Soft launched December 05
SingPost Mall – vSHOP, vConcierge
November –December 05
Soft launched December 05
Launch date / Promotion period
♦ Retail product promotions during festive season
♦ Matching set of Christmas cards and stamps
♦ Christmas decoration for centrally located Kiliney Road post office to draw crowds
♦ New express courier service offering♦ International delivery by DHL
Christmas offerings –shopping catalogue, Kiliney Road Post Office decoration, SingPost Christmas cards
Speedpost Express
Initiatives
7
Q3 FY05/06 Financial ResultsQ3 FY05/06 Financial Results
8
Quarterly Performance Overview Quarterly Performance Overview
Quarterly Operating Revenue
♦ Firm growth in operating revenue sustained
♦ Strong underlying net profit growth, underpinned by improved business performance and operating leverage
Q1 Q2 Q3 Q4FY03/04 FY04/05 FY05/06
8.2%
2.6% 3.2% 2.0%0.5%
7.4%12.6%$M
Quarterly EBITDA* Quarterly Net Profit*
Q1 Q2 Q3 Q4
FY03/04 FY04/05 FY05/06
Q1 Q2 Q3 Q4
FY03/04 FY04/05 FY05/06
5.2%
10.0%9.0%
$M
6.5% 1.3% 7.8%10.0%
6.7%
* Excluding exceptional items and depreciation impact from change in assets’ useful lives
$M
7.6%
(0.7)% 6.7%(2.4)% (0.4)%
6.5%
9
Q3 FY05/06 Performance HighlightsQ3 FY05/06 Performance Highlights
♦ Strong business performance and operating leverage
17.4%32,81027,950Net profit *
14.3%40,84335,748Operating profit
4.2%4,5314,349Other operating income
10.0%
6.5%
30,737
48,960
27,950
45,986
Net profit excluding depreciation impact & exceptional items
EBITDA (excluding exceptional items)
7.4%107,980100,510Operating revenue
ChangeQ3 FY05/06Q3 FY04/05(S$’000)
* Profit after tax attributable to equity holders of the Company
10
Q3 FY05/06 Operating ExpensesQ3 FY05/06 Operating Expenses
1.6
8.7 8.9
69.1
8.5
73.7
24.4 25.68.4
2.8
28.425.6
Volume relatedcosts
Labour costs Selling &promotionexpenses
Depreciation* Others Total*
FY04/05 FY05/06
$1.1M4.6%
$2.8M10.9%
$1.3M80.4%
$0.2M2.6%$M
$0.3M3.8%
* Excluding depreciation impact from change in assets’ useful lives
$4.6M6.7%
♦ Costs increased in tandem with business growth
♦ Continued cost discipline kept other costs down
11
Q3 FY05/06 Profit MarginsQ3 FY05/06 Profit Margins
45.7%45.8%46.6% 45.7%45.3%
43.8%46.0%
Q1 Q2 Q3 Q4
EBITDA Margins*
♦ Underlying profit margins remain strong
27.8%28.1%29.1% 28.1%
28.5%28.3%
27.3%
Q1 Q2 Q3 Q4
Net Profit Margins*
34.5%35.0%33.7%
35.6%
35.9%
35.3%33.4%
Q1 Q2 Q3 Q4
Operating Profit Margins*
* Excluding exceptional items and depreciation impact from change in assets’ useful lives
FY04/05 FY05/06
12
99--Month FY05/06 Financial ResultsMonth FY05/06 Financial Results
13
9M FY05/06 Performance Highlights9M FY05/06 Performance Highlights
♦ Good operating performance for first 9 months
10.8%92,42083,413Net profit *
11.9%113,570101,518Operating profit
7.6%13,42712,483Other operating income
8.1%
6.9%
86,202
138,572
79,731
129,633
Net profit excluding depreciation impact & exceptional items
EBITDA (excluding exceptional items)
9.4%307,802281,469Operating revenue
Change9M FY05/069M FY04/05(S$’000)
* Profit after tax attributable to equity holders of the Company
14
9M FY05/06 Operating Expenses
♦ Costs increased in tandem with business growth
$17.8M9.1%
5.5
196.1
25.6
213.9
25.925.565.1
74.1
25.48.3
82.472.2
Volume relatedcosts
Labour costs Selling &promotionexpenses
Depreciation* Others Total*
FY04/05 FY05/06
$7.1M10.9%
$8.2M11.1%
$2.8M50.1%
$M
$0.1M0.5%
$0.2M0.9%
* Excluding depreciation impact from change in assets’ useful lives
15
Segmental Overview
16
Mail – Q3 FY05/06 Overview
♦ Mail revenue up 3.4% despite higher base in previous year due tolarge one-off postings
♦ Strong growth in operating profit and margin
Mail Operating Profit
Mail Operating Profit Margin
Q3 FY04/05 Q3 FY05/06
$2.7M3.4%
Mail Operating Revenue
79.2 81.8$M
Q3 FY04/05 Q3 FY05/06
29.4
33.0$3.6M12.3%
$M
37.1%
40.3%
Q3 FY04/05 Q3 FY05/06
17
Mail – Q3 FY05/06 Revenue Breakdown
3.4%81.879.2Mail
ChangeQ3 FY05/06
Q3 FY04/05(S$M)
♦ One-off postings in previous year
♦ Continued growth in direct mail
♦ Increased mailroom outsourcing activities
3.2
25.7
50.3
3.9
28.0
49.9
Domestic mail International mail Hybrid mail
Q3 FY04/05Q3 FY05/06
$0.3M0.7%
$2.4M9.3%
$0.6M19.5%
$M
♦ Increased volumes from new customers
♦ Higher volumes from new customers
18
Mail – 9M FY05/06 Overview
Quarterly Revenue♦ Firm 7.1% increase in Mail
revenue and double-digit operating profit growth of 14.4%
♦ Growth across business lines – domestic, international & hybrid
Q1 Q2 Q3 Q4FY2003/04 FY2004/05 FY2005/06
8.4%
2.0% 2.9% 1.6%1.4%
10.1%$M 3.4%
9-Month Revenue Breakdown 9-Month Operating Revenue & Profit$M 7.1%
14.4%
81.6
221.5237.3
93.4
Operating Revenue Operating Profit
9M FY04/05
9M FY05/06
9M FY04/05
9M FY05/06
9.5
70.3
141.7
10.7
78.7
147.9
Domestic mail International mail Hybrid mail
9M FY04/059M FY05/06
4.4%
12.0%
12.8%
$M
19
Logistics – Q3 FY05/06 Overview
♦ Continued growth momentum
♦ Double-digit growth in Logistics revenue and operating profit
Q3 FY04/05 Q3 FY05/06
Logistics Operating Revenue
$2.1M+15.3%
16.0
13.9
$M
Q3 FY04/05 Q3 FY05/06
$1.0M+49.8%
Logistics Operating Profit
2.03.0
$M
Q3 FY04/05 Q3 FY05/06
14.4%18.7%
Logistics Operating Profit Margin
20
Logistics – Q3 FY05/06 Revenue Breakdown
15.3%16.013.9Logistics
ChangeQ3 FY05/06
Q3 FY04/05(S$M)
♦ Growth in domestic and worldwide courier services
♦ Fuel & security surcharge implemented in December 2004
12.5
14.0
1.91.3
Speedpost Warehousing, fulfilment &distribution & Others
Q3 FY04/05
Q3 FY05/06
$1.5M12.1%
$0.6M48.4%
$M
♦ New customers acquired
21
Logistics – 9M FY05/06 Overview
Quarterly Revenue♦ Double-digit growth in
operating revenue and profit
♦ Boost from new clients, as well as fuel & security surcharge implemented in Dec 2004
Q1 Q2 Q3 Q4FY2003/04 FY2004/05 FY2005/06
11.4% 20.2%$M 15.3%
4.4% 7.1% 5.8%(1.5%)
9-Month Revenue Breakdown 9-Month Operating Revenue & Profit$M
5.2
38.6
44.7
6.7
Operating Revenue Operating Profit
15.7%
28.8%
9M FY04/05
9M FY05/06
9M FY04/05
9M FY05/06
3.6
34.8
5.7
38.8
Speedpost Warehousing, fulfilment anddistribution & Others
9M FY04/059M FY05/06
11.3%
57.9%
$M
22
Retail – Q3 FY05/06 Overview
♦ Growing contributions from financial services and vPOSTtransactions
♦ Margin improvements following start-up costs and additional expenditure incurred last FY for rollout of financial services
Retail Operating Revenue
Retail Operating Profit
Q3 FY04/05 Q3 FY05/06
20.5%17.8%
Retail Operating Profit Margin
Q3 FY04/05 Q3 FY05/06
13.211.9
$1.3M+10.8%
$M
Q3 FY04/05 Q3 FY05/06
2.7
2.1
$0.6M+27.4%
$M
23
Retail – Q3 FY05/06 Revenue Breakdown
10.8%13.211.9Retail
ChangeQ3 FY05/06
Q3 FY04/05(S$M)
♦ Contributions from financial services
♦ Increasing transactions on vPOST
6.4
5.5
7.9
5.3
Retail Inter-segment
Q3 FY04/05
Q3 FY05/06
$1.6M+24.7%
$M
$0.3M5.2%
24
Retail – 9M FY05/06 Overview
Q1 Q2 Q3 Q4FY2003/04 FY2004/05 FY2005/06
Quarterly Revenue
11.1% 18.5%$M
10.8%
0.1% 0.9% 5.8%(1.1%)
♦ Double-digit growth in Retail operating revenue and profit
♦ Financial services accounted for $3.2m, or 72%, of Retail revenue growth
9-Month Revenue Breakdown 9-Month Operating Revenue & Profit
$M
3.6
32.837.2
5.4
Operating Revenue Operating Profit
13.4%
49.0%
9M FY04/05
9M FY05/06
9M FY04/05
9M FY05/06
15.717.1
15.821.4
Retail Inter-segment
9M FY04/05 9M FY05/0625.4%
0.4%
$M
25
Financial Services Update
Target market:(source: Statistics Dept 2000):♦ Est. 1.5m working population
earning S$1,600 & above per month
New business sales (source: Life Insurance Assoc.):♦ Jan-Sep 05 premiums of
S$4.28bn comprising: - Single premiums: S$3.73bn - Annual premiums: S$546.6m
Target market:♦ Est. 459,000 foreign workers
from targeted regional markets (Philippines, Thailand, India, Sri Lanka, Bangladesh, China, Indonesia)
Pawnbroking statistics (1H2004)(source: Registry of Pawnbrokers):♦ Pawnbroking value: S$0.78bn ♦ No. of transactions: 1.66m♦ Oct 2004: 91 pawnshops
Status:♦Continuing to work with existing partners who
provide reliable payment pipes to variousdestination countries for different delivery modes
♦Working with new partners to enhance remittanceofferings to the public
Status:♦Promotion by active referrals at post offices,
advertisements and Admail to create greater product awareness
♦Rolled out to 17 post offices; target 20 by 31 March 06
Status:♦New white-labelled product in Q4 FY05/06 –
“Medi-Sure Plus”, a medical insurance plan♦Postassurance rolled out to 34 post offices;
target 36 by 31 March 06
Status:♦Marketing via roadshows in communities where
outlets are located, as well as AdMail♦2 new outlets opened in Q3 FY05/06; target 1
more by 31 March 06 for total of 5 outlets
As at 27 January 2006
26
Cash Flow, Dividends
27
Cash Flow, Dividends
♦ Strong cashflow generation
— Net cash flow from operating activities of $43.0 million in Q3 FY05/06
— 9-month net cash flow from operating activities amounted to $104.6 million, compared to $91.4 million previously
♦ Dividends
— Special dividend of 10 cents per share paid on 16 January 2006
— Additional borrowings to fund working capital requirements
— Regular quarterly dividend of 1.25 cents per share to be paid on 28 February 2006
Net Operating Cashflow
112.7 121.7144.4
104.6
FY02/03 FY03/04 FY04/05 9MFY05/06
$M
28
Outlook
29
Outlook
♦ Remain positive on Group’s growth prospects
♦ Positive on outlook of segments in core business – namely direct mail, international mail and Speedpost
♦ Strategy of leveraging network bearing fruit; focused on further rollout of financial services and enhancement of products/services at post offices and vPOST
♦ Expect higher borrowing costs
30
Summary
31
Summary
♦ Sustained robust performance in Q3 FY05/06
— Operating revenue growth of 7.4%
— Underlying net profit growth of 10.0%
♦ Growth across the board
— Strong operating performance across all business units
♦ Dividend payout
— Regular quarterly dividend of 1.25 cent per share
32
Thank You