SINGAPORE POST LIMITED AND ITS SUBSIDIARIES (Registration number: M)

Transcription

1 SINGAPORE POST LIMITED AND ITS SUBSIDIARIES (Registration number: M) SGXNET ANNOUNCEMENT UNAUDITED RESULTS FOR THE FIRST QUARTER ENDED 30 JUNE

2 PART I INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF YEAR AND FULL YEAR RESULTS (1)(a)(i) Statement of comprehensive income for the group, together with a comparative statement for the corresponding period of the immediately preceding financial year. 2 FY2009/10 FY2008/09 Q1 Q1 Variance S$'000 S$'000 % Revenue 121, , % Other income and gains (net) - Rental and property-related income 9,968 7, % - Miscellaneous 936 1,362 (31.3%) Labour and related expenses (33,563) (32,756) 2.5% Volume-related expenses 1 (29,214) (29,645) (1.5%) Administrative and other expenses (12,326) (9,927) 24.2% Depreciation (7,520) (6,557) 14.7% Selling expenses (2,103) (1,388) 51.5% Finance expenses (1,941) (1,883) 3.1% Total expenses (86,667) (82,156) 5.5% Share of profit of associated companies and joint ventures 1,372 1, % Profit before income tax 47,393 48,337 (2.0%) Income tax expense (7,858) (8,598) (8.6%) Total profit 39,535 39,739 (0.5%) Attributable to: Equity holders of the Company 39,401 39,455 (0.1%) Minority interest (52.8%) Total profit 39,535 39,739 (0.5%) Other comprehensive income (net of tax): Currency translation differences (2,245) Release of other capital reserve on disposal of an associated company (1,596) - N.M. Cash flow hedges - fair value losses (32) (158) (79.7%) Other comprehensive income for the period (net of tax) (3,873) Total comprehensive income for the period 35,662 39,315 (9.3%) Total comprehensive income attributable to: Equity holders of the Company 35,547 39,062 (9.0%) Minority interest (54.5%) 35,662 39,315 (9.3%) Operating Profit 2 47,891 48,968 (2.2%) Underlying Net Profit 3 36,905 38,934 Denotes variance exceeding 300% N.M. Not meaningful. Notes 1 Volume-related expenses comprise mainly traffic expenses and cost of sales. 2 Operating profit for the purposes of paragraph 8 Review of the performance of the Group is defined as profit before interest, tax and share of profit of associated companies and joint ventures. 3 Underlying net profit is defined as profit after tax and minority interest before one-off items and gains and losses on property, plant and equipment and is derived as follows:

3 FY2009/10 FY2008/09 Q1 Q1 Variance S$'000 S$'000 % Profit attributable to equity holders of the Company 39,401 39,455 (0.1%) Less: Gain on sale of investments, property, plant (143) (128) 11.7% and equipment Less: Over-provision of tax in respect of prior years - (393) N.M. Less: One-off impact of Singapore Budget Jobs Credit Scheme (2,038) - N.M. - Property tax rebate (net) (315) - N.M. Underlying Net Profit 36,905 38,934 (5.2%) N.M. Not meaningful. (1)(a)(ii) FY2009/10 FY2008/09 Q1 Q1 Variance S$'000 S$'000 % Other operating income and interest income 10,904 8, % Interest on borrowings 1,978 1, % Depreciation and amortisation 7,681 6, % Impairment / (write-back) of doubtful debts and bad debts written off (24) 35 N.M. Foreign exchange gains / (losses) (18.3%) Adjustments for over-provision of tax in respect of prior years N.M. Gains / (losses) on sale of investments, property, plant and equipment % N.M. Not meaningful. 3

4 (1)(b)(i) Statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year. The Group The Company Jun-09 Mar-09 Jun-09 Mar-09 S$ 000 S$ 000 S$ 000 S$ 000 ASSETS Current assets Cash and cash equivalents 184, , , ,255 Trade and other receivables 78,814 69,303 83,310 52,243 Inventories Other current assets 7,085 5,708 3,951 4,523 Non-current asset held for sale - 84,275-80, , , , ,617 Non-current assets Trade and other receivables 3, ,860 9,859 Investments in associated companies and joint ventures 44,668 9,021-2,450 Investments in subsidiaries ,684 12,105 Investment property 204, , , ,131 Property, plant and equipment 255, , , ,584 Intangible assets 88, , Deferred income tax assets Derivative financial instruments 2,046 3,258 2,046 3,258 Other non-current asset , , , ,051 Total assets 870, , , ,668 LIABILITIES Current liabilities Trade and other payables 179, , , ,091 Current income tax liabilities 45,519 35,014 42,683 34,624 Dividend payable 48,160-48,160 - Deferred income , , , ,785 Non-current liabilities Borrowings 301, , , ,969 Deferred income tax liabilities 16,012 16,200 15,252 15,811 Deferred income 35, , , , , ,131 Total liabilities 626, , , ,916 NET ASSETS 243, , , ,752 EQUITY Capital and reserves attributable to the Company s equity holders Share capital 114, , , ,673 Other reserves 2,041 5,700 2,792 2,597 Retained earnings 122, , , , , , , ,752 Minority interest 4,959 4, Total equity 243, , , ,752 4

5 (1)(b)(ii) In relation to the aggregate amount of the group s borrowings and debt securities. Jun-09 S$ 000 Mar-09 S$ 000 Amount repayable in one year or less, or on demand - - Amount repayable after one year: - Bonds (unsecured) 301, , , ,969 The Singapore Dollar unsecured bonds of principal amount S$300 million listed on the SGX-ST have a maturity period of 10 years from 11 April 2003 and a fixed interest rate of 3.13% per annum. The carrying values above reflect the fair values of the fixed rate bonds at the respective balance sheet dates. The fair values are determined based on independent market quotations from reputable financial institutions. Details of any collateral. Not applicable. 5

6 (1)(c) Statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year. The Group FY2009/10 FY2008/09 Q1 Q1 S$'000 S$ 000 Cash flows from operating activities Total profit 39,535 39,739 Adjustments for: Income tax expense 7,858 8,598 Amortisation of grants received (18) (17) Amortisation of intangible assets Depreciation 7,520 6,557 Gains on sale of investments, property, plant and equipment (143) (128) Share-based staff costs Interest expense 1,978 1,876 Interest income (71) (203) Share of profit of associated companies and joint ventures (1,372) (1,049) 16,117 15,844 Operating cash flow before working capital changes 55,652 55,583 Changes in working capital Inventories (135) (671) Trade and other receivables 6, Trade and other payables 6,595 (3,252) Cash generated from operations 68,268 51,926 Income tax paid (610) (120) Net cash provided by operating activities 67,658 51,806 Cash flows from investing activities Dividend received from a joint venture - 81 Interest received Acquisition of subsidiary, net of cash acquired (85,013) - Investment in an associated company (9,276) - Loan to an associated company (3,436) - Proceeds from disposal of an associated company 81,043 - Purchases of property, plant and equipment (1,867) (2,510) Proceeds from disposal of property, plant and equipment Net cash used in investing activities (18,452) (2,093) Cash flows from financing activities Dividends paid to a minority shareholder by a subsidiary (5) - Interest paid (3,952) (4,565) Proceeds from issuance of ordinary shares 97 1,135 Proceeds from grants - 13 Net cash used in financing activities (3,860) (3,417) Net increase in cash and cash equivalents 45,346 46,296 Cash and cash equivalents at beginning of financial period 139, ,142 Cash and cash equivalents at end of financial period 184, ,438 6

7 (1)(d)(i) Statement of changes in equity (for the issuer and group), together with a comparative statement for the corresponding period of the immediately preceding financial year. The Group Attributable to equity holders of the Company Share Retained Other Minority Total capital earnings reserves Total interest equity S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 Balance at 1 April , ,984 5, ,357 4, ,201 Dividends - (48,165) - (48,165) - (48,165) Total comprehensive income for the period - 39,401 (3,854) 35, , , ,220 1, ,739 4, ,698 Employee share option scheme: - Value of employee services Proceeds from shares issued (9) Balance as at 30 June , ,220 2, ,040 4, ,999 Balance at 1 April , ,561 5, ,414 4, ,584 Dividends - (48,147) - (48,147) - (48,147) Total comprehensive income for the period - 39,455 (393) 39, , ,053 93,869 5, ,329 4, ,752 Employee share option scheme: - Value of employee services Proceeds from shares issued 1,254 - (119) 1,135-1,135 Balance at 30 June ,307 93,869 5, ,665 4, ,088 7

8 The Company Attributable to equity holders of the Company Share Retained Other Total capital earnings reserves equity S$ 000 S$ 000 S$ 000 S$ 000 Balance at 1 April , ,482 2, ,752 Dividends - (48,160) - (48,160) Total comprehensive income for the period - 35,607-35, , ,929 2, ,199 Employee share option scheme: - Value of employee services Proceeds from shares issued (9) 97 Balance as at 30 June , ,929 2, ,500 Balance at 1 April ,053 94,698 1, ,733 Dividends - (48,147) - (48,147) Total comprehensive income for the period - 37,856-37, ,053 84,407 1, ,442 Employee share option scheme: - Value of employee services Proceeds from shares issued 1,254 - (119) 1,135 Balance at 30 June ,307 84,407 2, ,778 (1)(d)(ii) Details of any changes in the company s share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year. During the first quarter ended 30 June 2009, the Company issued 120,121 ordinary shares at prices ranging from S$0.547 to S$0.811 upon the exercise of options granted under the Singapore Post Share Option Scheme. As at 30 June 2009, there were unexercised share options of 26,498,958 (31 March 2009: 19,094,079) of unissued ordinary shares under the Singapore Post Share Option Scheme. The Company did not hold any treasury shares. 8

9 (1)(d)(iii)To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year. As at 30 June 2009, total issued shares were 1,926,381,189 (31 March 2009: 1,926,261,068). (1)(d)(iv)A statement showing all sales, transfers, disposal, cancellation and / or use of treasury shares as at end of the current financial period reported on. Not applicable. (2) Whether the figures have been audited or reviewed, and in accordance with which auditing standard or practice. The figures have not been audited or reviewed. (3) Where figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of a matter). Not applicable. (4) Whether the same accounting policies and methods of computation as in the issuer s most recently audited annual financial statements have been applied. Except as disclosed under paragraph 5 below, the Group has applied the same accounting policies and methods of computation in the financial statements for the current reporting period compared with the audited financial statements for the financial year ended 31 March (5) If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change. On 1 April 2009, the Group adopted the new or amended FRS and Interpretations to FRS ( INT FRS ) that are mandatory for application from that date. Changes to the Group s accounting policies have been made as required, in accordance with the transitional provisions in the respective FRS and INT FRS. The following are the new or amended FRS and INT FRS that are relevant to the Group: FRS 1(R) FRS 108 Revised FRS 23 Presentation of Financial Statements Operating Segments Borrowing Costs The adoption of the above amended FRS or INT FRS did not result in any substantial changes to the Group s accounting policies nor any significant impact on these financial statements except as discussed below: 9

10 (a) FRS 1(R) Presentation of Financial Statements The revised standard requires: All changes in equity arising from transactions with owners in their capacity as owners to be presented separately from components of comprehensive income; Components of comprehensive income not to be included in statement of changes in equity; Items of income and expenses and components of other comprehensive income to be presented either in a single statement of comprehensive income with subtotals, or in two separate statements (a separate statement of profit and loss followed by a statement of comprehensive income); Presentation of restated balance sheet as at the beginning of the comparative period when entities make restatements or reclassifications of comparative information. The revisions also include changes in the titles of some of the financial statements primary statements. The Group has elected to present items of income and expenses and components of other comprehensive income in a single statement of comprehensive income with subtotals from 1 April 2009 and has provided comparative information that conforms to the requirements of the revised standard. (b) FRS 108 Operating Segments FRS 108 supercedes FRS 14 Segment Reporting and requires the Group to report the financial performance of its operating segments based on the information used internally by management for evaluating segment performance and deciding on allocation of resources. Such information may be different from the information included in the financial statements, and the basis of its preparation and reconciliation to the amounts recognised in the financial statements shall be disclosed. The Group has applied FRS 108 from 1 April 2009 and will provide comparative information that conforms to the requirements of FRS 108. The required disclosures will be made accordingly in the financial statements of the Group and the Company for the financial year ending 31 March (c) Revised FRS 23 Borrowing Costs The revised standard removes the option to recognise immediately as an expense borrowing costs that are attributable to qualifying assets, except for those borrowing costs on qualifying assets that are measured at fair value or inventories that are manufactured or produced in large quantities on a repetitive basis. The Group has applied the revised FRS from 1 April As the Group has been capitalising the relevant borrowing costs, the revised standard does not have any impact on the Group. 10

11 (6) Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends. The Group FY2009/10 FY2008/09 Q1 Q1 Based on weighted average number of ordinary shares in issue cents cents On fully diluted basis cents cents (7) Net asset value (for the issuer and group) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the current financial period reported on and immediately preceding financial year. The Group The Company Jun-09 Mar-09 Jun-09 Mar-09 Net asset value per ordinary share based on issued share capital of the Company at the end of the financial period (cents) (8) Review of the performance of the group. First Quarter Ended 30 June 2009 FY2009/10 FY2008/09 Q1 Q1 Variance Revenue S$ 000 S$ 000 % Mail 85,922 92,628 (7.2%) Logistics 34,441 18, % Retail 16,527 16, % Inter-segment eliminations (15,106) (6,286) 140.3% Total 121, , % The Group consolidated G3 Worldwide Aspac Pte Ltd ( G3AP ) for the first time, upon completion of the acquisition of the remaining 50% stake in G3AP on 6 May The operating performances of all three business segments were affected by the adverse economic conditions. Mail volumes decreased in the quarter, resulting in the decline in Mail revenue by 7.2% to S$85.9 million. Logistics revenue, which included G3AP for the first time, increased 90.7% to S$34.4 million. Excluding G3AP, Logistics revenue fell as Speedpost traffic dropped in tandem with reduced business activities. In Retail, revenue was steady against the same quarter last year. As a result, the Group s revenue increased 0.7% to S$121.8 million as the consolidation of G3AP helped offset the declines in operating performances. In spite of the economic downturn, rental and property-related income continued to show an improvement, with the increase in rental income from Singapore Post Centre and the leasing of space at the repurposed post office buildings. Rental and property-related income increased 38.4% to S$10.0 million. 11

12 The Group s total expenses increased 5.5% to S$86.7 million in the quarter. Most of the increase resulted from the consolidation of G3AP. Labour and related expenses rose as higher staff base offset the benefits from the Jobs Credit Scheme. Volume-related expenses decreased, in line with the decline in business activities. Administrative and other expenses increased, as a result of additional costs from G3AP and higher professional and consultancy fees. FY2009/10 FY2008/09 Q1 Q1 Variance Operating profit S$ 000 S$ 000 % Mail 31,998 37,539 (14.8%) Logistics 2,816 2, % Retail 2,990 3,155 (5.2%) Others 10,087 5, % Total 47,891 48,968 (2.2%) With a high operating leverage, the decline in Mail segment revenue adversely impacted the profitability of the segment. Logistics operating profit was higher because of the inclusion of G3AP. Retail operating profit declined with a lower contribution from higher margin financial services products. Others segment comprises the rest of the Group s operations. The growth of 73.7% was due mainly to increase in rental income. The share of profit of associated companies and joint ventures included the final equityaccounted contributions from G3AP and G3 Worldwide Mail, N.V. ( G3WW ). For the first quarter ended 30 June 2009, the Group s net profit of S$39.4 million was marginally lower by 0.1% or S$0.1 million. Excluding one-off items such as the benefits from the Jobs Credit Scheme, underlying net profit declined 5.2% or S$2.0 million to S$36.9 million. Balance Sheet The Group s total assets increased from S$770.2 million as at 31 March 2009 to S$870.9 million as at 30 June 2009: Cash and cash equivalents increased from S$139.5 million to S$184.9 million from current period profits as well as improvement in working capital. With the completion of the share swap transactions, where the Group acquired the remaining 50% stake in G3AP in exchange for its 24.5% interest in G3WW and cash payment, the carrying amount in non-current asset held for sale was reduced to nil from S$84.3 million as at 31 March Under non-current assets, investments in associated companies and joint ventures increased from S$9.0 million to S$44.7 million as a result of the Group s investment in a 30% stake in Postea, Inc in May Intangible assets increased from S$0.3 million to S$88.7 million, arising from the recording of the intangibles relating to the Group s acquisition of the additional 50% interest in G3AP and intellectual property rights relating to the Group s collaboration with Postea, Inc. Total liabilities amounted to S$626.9 million compared to S$514.0 million as at 31 March 2009: Trade and other payables were higher mainly due to the consolidation of G3AP. Under non-current liabilities, deferred income increased from S$0.4 million to S$35.6 million. This relates to the resulting gain arising from the recognition of the non-cash consideration for the investment in Postea, Inc. 12

13 Shareholders equity was S$239.0 million as at 30 June 2009, compared to S$251.4 million as at 31 March The Group s net debt amounted to S$116.9 million and net gearing ratio was 0.5 times. Interest coverage ratio (i.e. EBITDA to interest expense) remained high, at 28.7 times. Cash Flow Net cash from operating activities amounted to S$67.7 million in Q1 FY2009/10, compared to S$51.8 million in the same quarter last year. Net cash used in investing activities amounted to S$18.5 million for the quarter, compared to S$2.1 million in the same quarter last year. The increase was due mainly to the Group s investment in Postea, Inc and a loan to a wholly owned subsidiary of Postea, Inc. (9) Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. Not applicable. (10) A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. The economic outlook remains challenging and will continue to have an impact on the Group s performance. In addition, the Group continues to face margin pressure from competition in the liberalised mail market. The acquisition of the remaining 50% stake in G3AP was completed on 6 May With full control over G3AP, the Group will focus on opportunities to expand the existing business beyond cross-border mail and extend its core competencies in Asia Pacific. The acquisition of the 30% stake in Postea, Inc. was completed on 29 May The Group is positive on the potential for future business development and synergies created by the collaboration with Postea, Inc. to jointly develop and market postal as well as logistics technologies. (11) Dividends Current financial period reported on Interim dividend In relation to the first quarter ended 30 June 2009, the Board of Directors has declared an interim dividend of 1.25 cents per ordinary share (tax exempt one-tier). The interim quarterly dividend of 1.25 cents per ordinary share will be paid on 31 August The transfer book and register of members of the Company will be closed on 19 August 2009 for the preparation of dividend warrants. Duly completed registrable transfers of the ordinary shares in the capital of the Company received by the Company s registrar up to 5.00 pm on 18 August 2009 will be registered to determine members entitlements to the dividend. 13

14 Corresponding period of the immediately preceding financial year Interim dividend An interim dividend of 1.25 cents per ordinary share (tax exempt one-tier) in relation to the first quarter ended 30 June 2008 was declared on 29 July 2008 and paid on 29 August (12) If no dividend has been declared (recommended), a statement to that effect. Not applicable. PART II OTHER INFORMATION (13) Interested Person Transactions During the first quarter ended 30 June 2009, the following interested person transactions were entered into by the Group: Aggregate value of all interested person transactions during the financial period (excluding transactions less than S$100,000 and transactions conducted under shareholders mandate pursuant to Rule 920) Aggregate value of all interested person transactions conducted under shareholders mandate pursuant to Rule 920 (excluding transactions less than S$100,000) Sales FY2009/10 FY2008/09 FY2009/10 FY2008/09 Q1 Q1 Q1 Q1 S$ 000 S$ 000 S$ 000 S$ 000 Singapore Airlines Limited and its associates * - Singapore Telecommunications Limited and its associates - - 8,870* 1,378 Starhub Ltd and its associates - - 1,589 1,668 Purchases ,677 3,046 Singapore Airlines Limited and its associates - - 2,600 2,300 Temasek Holdings (Private) Limited and its associates * ,196 2,505 Total interested person transactions ,873 5,551 Note All the transactions set out in the above table were based on the Group s interested person transactions register. They were either based on contractual values for the duration of the contracts (which may vary from 1 year to 3 years) or annual values for open-ended contracts. * Include contracts of duration exceeding one year. 14

15 (14) Confirmation by the Board pursuant to rule 705(4) of the Listing Manual On behalf of the Board of Directors of the Company, we, the undersigned, hereby confirm to the best of our knowledge that nothing has come to the attention of the Board of Directors of the Company which may render the financial statements for the first quarter ended 30 June 2009 to be false or misleading. On behalf of the Board of Directors MR LIM HO KEE Chairman MR WILSON TAN WEE YAN Director Singapore 30 July