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1 MISCELLANEOUS Page 1 of 1 27/01/2006 Print this page Miscellaneous * Asterisks denote mandatory information Name of Announcer * Company Registration No. Announcement submitted on behalf of Announcement is submitted with respect to * Announcement is submitted by * Designation * SINGAPORE POST LIMITED M SINGAPORE POST LIMITED SINGAPORE POST LIMITED Leong Chee Sian (Ms) Company Secretary Date & Time of Broadcast 27-Jan :08:47 Announcement No >> Announcement Details The 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 Attachments: PresentationSlides-FY0506.pdf Total size = 432K (2048K size limit recommended) Close Window

2 Singapore Post Limited Quarter 3 & 9-Month 9 FY2005/06 Results 27 January 2006

3 Note Forward 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that could cause actual results, performance or events to differ materially from those in the statements as originally made.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. 1

4 Agenda Highlights Results Highlights Business Highlights Financial Results Segmental Overview Cash Flow, Dividends Outlook Summary 2

5 Highlights: Group Results underlying performance* Operating Revenue 6.7% EBITDA 7.6% % % % % Q1 Q2 Net Profit 10.0% 5.2% 9.0% 30.7 Q1 Q * Excluding exceptional items and depreciation impact from change in assets useful lives Q1 Q2 3

6 Highlights: 9M Group Results 9M underlying performance* EBITDA 6.9% Operating Revenue % M 9M Net Profit 8.1% M 9M 79.7 * Excluding exceptional items and depreciation impact from change in assets useful lives 9M 9M 4

7 Highlights: Segment Results Logistics 15.3% % Mail % % Retail % % Operating Revenue Operating Profit 5

Business Highlights Initiatives Initiatives Speedpost Express SingPost Mall vshop, vconcierge Christmas offerings shopping catalogue, Kiliney Road Post Office decoration, SingPost Christmas cards

8 Business Highlights Initiatives Initiatives Speedpost Express SingPost Mall vshop, vconcierge Christmas offerings shopping catalogue, Kiliney Road Post Office decoration, SingPost Christmas cards Launch date / Promotion period Soft launched December 05 Soft launched December 05 November December 05 New express courier service offering International delivery by DHL Enhanced service offerings on vpost - vshop, an online shopping mall - vconcierge, shopping on behalf of customers Delivery/shipping service to customers 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 6

9 Financial Results 7

10 Quarterly Performance Overview Firm growth in operating revenue sustained Strong underlying net profit growth, underpinned by improved business performance and operating leverage Quarterly Operating Revenue 12.6% 7.4% 8.2% 0.5% 2.6% 3.2% 2.0% Quarterly EBITDA* Q1 Q2 Q4 FY03/04 Quarterly Net Profit* 6.7% 7.6% 6.5% 5.2% 9.0% 10.0% (0.7)% (2.4)% (0.4)% 6.7% 10.0% 6.5% 1.3% 7.8% Q1 Q2 Q4 Q1 Q2 Q4 FY03/04 FY03/04 * Excluding exceptional items and depreciation impact from change in assets useful lives 8

11 Performance Highlights Strong business performance and operating leverage (S$ 000) Change Operating revenue 100, , % Other operating income 4,349 4, % Operating profit 35,748 40, % Net profit * 27,950 32, % Net profit excluding depreciation impact & exceptional items 27,950 30, % EBITDA (excluding exceptional items) 45,986 48, % * Profit after tax attributable to equity holders of the Company 9

12 Operating Expenses Costs increased in tandem with business growth Continued cost discipline kept other costs down $4.6M 6.7% $1.1M 4.6% $2.8M 10.9% $1.3M 80.4% 2.8 $0.2M 2.6% $0.3M 3.8% 8.5 Volume related costs Labour costs Selling & promotion expenses * Excluding depreciation impact from change in assets useful lives Depreciation* Others Total* 10

13 Profit Margins EBITDA Margins* Underlying profit margins remain strong 46.6% 46.0% 45.8% 43.8% 45.3% 45.7% 45.7% Q1 Q2 Q4 Operating Profit Margins* Net Profit Margins* 35.9% 35.0% 35.3% 33.7% 33.4% 35.6% 34.5% 29.1% 28.3% 28.1% 27.3% 27.8% 28.5% 28.1% Q1 Q2 Q4 Q1 Q2 Q4 * Excluding exceptional items and depreciation impact from change in assets useful lives 11

14 9-Month Financial Results 12

15 9M Performance Highlights Good operating performance for first 9 months (S$ 000) 9M 9M Change Operating revenue 281, , % Other operating income 12,483 13, % Operating profit 101, , % Net profit * 83,413 92, % Net profit excluding depreciation impact & exceptional items 79,731 86, % EBITDA (excluding exceptional items) 129, , % * Profit after tax attributable to equity holders of the Company 13

16 9M Operating Expenses Costs increased in tandem with business growth $17.8M 9.1% $7.1M 10.9% $8.2M 11.1% $2.8M 50.1% $0.1M 0.5% $0.2M 0.9% 25.6 Volume related costs Labour costs Selling & promotion expenses Depreciation* Others Total* * Excluding depreciation impact from change in assets useful lives 14

17 Segmental Overview 15

18 Mail Overview Mail revenue up 3.4% despite higher base in previous year due to large one-off postings Strong growth in operating profit and margin Mail Operating Revenue Mail Operating Profit Mail Operating Profit Margin 79.2 $2.7M 3.4% 81.8 $3.6M 12.3% % % 16

19 Mail Revenue Breakdown (S) Change One-off postings in previous year Mail % Continued growth in direct mail Increased mailroom outsourcing activities $0.3M 0.7% Increased volumes from new customers $2.4M 9.3% Higher volumes from new customers $0.6M 19.5% 3.9 Domestic mail International mail Hybrid mail 17

20 Mail 9M Overview Firm 7.1% increase in Mail revenue and double-digit operating profit growth of 14.4% Growth across business lines domestic, international & hybrid Quarterly Revenue 3.4% 10.1% 8.4% 1.4% 2.0% 2.9% 1.6% Q1 Q2 Q4 FY2003/04 FY2004/05 FY2005/06 9-Month Operating Revenue & Profit 7.1% Operating Revenue Operating Profit 14.4% Month Revenue Breakdown 4.4% % M 9M 12.8% M 9M 9M 9M Domestic mail International mail Hybrid mail 18

21 Logistics Overview Continued growth momentum Double-digit growth in Logistics revenue and operating profit Logistics Operating Revenue Logistics Operating Profit Logistics Operating Profit Margin 13.9 $2.1M +15.3% 16.0 $1.0M +49.8% 14.4% 18.7%

22 Logistics Revenue Breakdown Growth in domestic and worldwide courier services (S) Logistics Change 15.3% Fuel & security surcharge implemented in December 2004 $1.5M 12.1% New customers acquired $0.6M 48.4% Speedpost Warehousing, fulfilment & distribution & Others 20

23 Logistics 9M Overview Double-digit growth in operating revenue and profit Boost from new clients, as well as fuel & security surcharge implemented in Dec % (1.5%) Quarterly Revenue 20.2% 15.3% 4.4% 7.1% 5.8% Q1 Q2 Q4 FY2003/04 FY2004/05 FY2005/06 9-Month Operating Revenue & Profit 9-Month Revenue Breakdown 15.7% Operating Revenue Operating Profit % M 9M 28.8% 57.9% M 9M 9M 9M Speedpost Warehousing, fulfilment and distribution & Others 21

24 Retail Overview Growing contributions from financial services and vpost transactions Margin improvements following start-up costs and additional expenditure incurred last FY for rollout of financial services Retail Operating Revenue Retail Operating Profit Retail Operating Profit Margin 11.9 $1.3M +10.8% $0.6M +27.4% % 20.5% 22

25 Retail Revenue Breakdown Contributions from financial services (S) Retail Change 10.8% Increasing transactions on vpost $1.6M +24.7% $0.3M 5.2% Retail Inter-segment 23

26 Retail 9M Overview Double-digit growth in Retail operating revenue and profit Financial services accounted for $3.2m, or 72%, of Retail revenue growth 11.1% (1.1%) Quarterly Revenue 18.5% 10.8% 0.1% 0.9% 5.8% Q1 Q2 Q4 FY2003/04 FY2004/05 FY2005/06 9-Month Operating Revenue & Profit 9-Month Revenue Breakdown 13.4% 9M % 9M 32.8 Operating Revenue Operating Profit % % M 9M 9M 9M Retail Inter-segment 24

Financial Services Update As at 27 January 2006 Pawnbroking statistics (1H2004) (source: Registry of Pawnbrokers): Pawnbroking value: S$0.78bn No. of transactions: 1.

27 Financial Services Update As at 27 January 2006 Pawnbroking statistics (1H2004) (source: Registry of Pawnbrokers): Pawnbroking value: S$0.78bn No. of transactions: 1.66m Oct 2004: 91 pawnshops Target market: Est. 459,000 foreign workers from targeted regional markets (Philippines, Thailand, India, Sri Lanka, Bangladesh, China, Indonesia) 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: (source: Statistics Dept 2000): Est. 1.5m working population earning S$1,600 & above per month Status: Marketing via roadshows in communities where outlets are located, as well as AdMail 2 new outlets opened in ; target 1 more by 31 March 06 for total of 5 outlets Status: Continuing to work with existing partners who provide reliable payment pipes to various destination countries for different delivery modes Working with new partners to enhance remittance offerings to the public Status: New white-labelled product in Q4 Medi-Sure Plus, a medical insurance plan Postassurance rolled out to 34 post offices; target 36 by 31 March 06 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 25

28 Cash Flow, Dividends 26

29 Cash Flow, Dividends Strong cashflow generation Net cash flow from operating activities of $43.0 million in Net Operating Cashflow month net cash flow from operating activities amounted to $104.6 million, compared to $91.4 million previously Dividends FY02/03 FY03/04 9M 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

30 Outlook 28

31 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 29

32 Summary 30

33 Summary Sustained robust performance in 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 31

34 Thank You 32

FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT

FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT http://info.sgx.com/webcorannc.nsf/vwprint/e0d5a4ae1988df4048257102001007e2?opendocu... Page 1 of 1 27/01/2006 Print this page SingPost Group's unaudited results