COMFORTDELGRO S RESULTS FOR SECOND QUARTER ENDED 30 JUNE 2011 Revenue increased by 6.8% to $843.0 million as a result of broad-based growth. - The revenue increase would have been higher at 7.1% had it not been for the negative foreign currency translation effect of $2.4 million. - Revenue from overseas businesses accounted for 42.0% of Group revenue. - Revenue from the overseas bus business continued to outstrip that of the Singapore operations, accounting for 63.1% of total Group bus revenue. Operating profit increased by 3.7% to $103.0 million despite higher cost pressures which were led principally by fuel and electricity costs. - Overseas operating profit accounted for 45.5% of Group operating profit. - Operating profit of overseas bus businesses accounted for 86.9% of total Group bus operating profit. - The increase of $3.9 million in overseas bus operating profit was however not able to offset a $5.3 million decrease in the Singapore bus business. As a result, operating profit from the Group s bus business fell by 3.7% during the quarter. - The public scheduled bus business under SBS Transit in Singapore suffered an operating loss of $1.5 million during the quarter on lower average fares and a significant increase in operating cost. Net profit increased by 2.9% to $59.9 million. Singapore, 12 August 2011 ComfortDelGro Corporation today announced its unaudited results for the second quarter ended 30 June 2011. Highlights: Q2 2011 Q2 2010 YOY % change 1H2011 1H2010 % change Revenue 843.0 789.3 6.8 1,646.0 1,556.2 5.8 Operating Profit 103.0 99.3 3.7 189.9 189.9 - Net Profit 59.9 58.2 2.9 110.0 112.5-2.2 EBITDA 181.1 171.4 5.7 344.1 333.8 3.1 EPS (Based on existing share capital) - cents 2.87 2.79 2.9 5.26 5.39-2.4 Note: All figures in Singapore dollars ComfortDelGro Corporation Limited 205 Braddell Road Singapore 579701 www.comfortdelgro.com Co. Registration No.: 200300002K
Group ComfortDelGro Corporation s second quarter revenue increased by $53.7 million or 6.8% to $843.0 million compared to the same period last year. The bus business, led by the overseas operations, accounted for over 37% of the increase in Group revenue, followed closely by the taxi business with 31%. The automotive and engineering business, the rail business, the vehicle inspection and testing business, the bus station business and the car rental and leasing business accounted for the remaining 32%. Revenue from the Group s overseas operations accounted for 42.0% of Group revenue. Operating profit for the quarter increased by 3.7% to $103.0 million despite significant cost pressures, principally in fuel and electricity costs. Operating profit from the overseas businesses accounted for 45.5% of Group operating profit. Net profit for the quarter increased by 2.9% to $59.9 million. For the half-year ended 30 June 2011, Group revenue increased by 5.8% to $1.65 billion. Net profit however fell by 2.2% to $110.0 million on higher operating costs. ComfortDelGro Managing Director and Group Chief Executive Officer, Mr Kua Hong Pak, said: The global economic uncertainty and the inflationary pressures in the countries we operate will continue to pose challenges for the Group. However, with our strong balance sheet and low gearing, we will be well positioned to meet these challenges. 2
Operations Review Bus: At Group level, second quarter revenue from the bus business increased by 4.9% to $419.5 million as growth from operations in Australia, Singapore and the UK was offset by a decline in China. Revenue from overseas bus operations continued to account for the bulk of Group bus revenue amounting to 63.1%. Much of the growth came from the Group s Australian bus business which saw revenue jump by 20.4% to $110.0 million, thanks to an increase in services and a favourable foreign currency translation effect. Revenue from the bus business in the UK increased by 0.5% to $140.3 million during the quarter. Had it not been for the negative translation effect of the weaker Sterling Pound, revenue would have increased by $5.2 million or 3.7%. Revenue from the China bus business was 13.3% lower at $14.4 million due mainly to the negative translation effect of the weaker Renminbi. In Singapore, revenue from scheduled bus services under SBS Transit increased by 1.7% to $139.7 million for the quarter due to a 6.5% growth in average daily ridership. Including revenue from advertising and rental, total revenue at SBS Transit was 1.5% higher at $148.6 million. SBS Transit however came under intense cost pressure during the quarter on higher fuel and electricity costs. As a result, its bus business incurred an operating loss of $1.5 million - compared to an operating profit of $4.0 million during the same period last year. The overseas bus business accounted for 63.1% of total Group bus revenue and 86.9% of Group bus operating profit. 3
Taxi: At Group level, second quarter revenue from the taxi business increased by 7.1% to $255.6 million. In Singapore, revenue from the taxi business increased by 8.3% to $184.6 million due to a larger operating fleet and an increase in cashless transactions. In the UK, revenue from the taxi business fell by 6.0% to $33.1 million due mainly to the translation effect of the weaker Sterling Pound. In China, revenue from the taxi business was unchanged at $31.6 million as the increase in revenue of $2.3 million was negated by the negative foreign currency translation effect. In Vietnam, revenue from the taxi business increased by 6.7% to $1.6 million. The overseas taxi business accounted for 27.8% of total Group taxi revenue and 34.1% of total Group taxi operating profit. Rail: Revenue from the rail business in the second quarter increased by 11.1% to $33.3 million. Average daily ridership for the North East Line and the Punggol and Sengkang LRTs for the quarter grew by 15.7% and 15.8% to 418,000 and 57,000 respectively. Including rental and advertising income, total revenue from the rail business grew by 10.2% to $36.8 million during the quarter. 4
Bus Station: Revenue from the bus station business in Guangzhou increased by 3.6% to $5.7 million during the quarter from an increase in passenger volume. Vehicle Inspection and Testing Services: Revenue for the vehicle inspection and testing business increased by 5.5% to $22.9 million due to increases in the number of vehicles inspected and an increase in the number of projects completed by Setsco Services Pte Ltd. Automotive Engineering Services: Revenue for the automotive engineering services business increased by 13.1% to $109.1 million due to an increase in diesel sales and higher revenue from taxi maintenance and vehicle assembly. Dividend A tax-exempt one-tier interim dividend of 2.7 cents per ordinary share has been declared. This represents a payout ratio of 51.3% of the distributable profit of the first half of 2011. 5
Commentary Revenue from the bus business in Singapore is expected to improve due to an expected increase in ridership. Advertising and rental revenues are expected to be maintained. In the UK, revenue from the bus business is expected to continue to be impacted by the translation effect of the weaker Sterling Pound. Revenue from the bus business in Australia is expected to improve while revenue from the bus business in China is expected to be maintained. Revenue from the rail business is expected to benefit from an expected increase in ridership. Revenue from the bus station business in Guangzhou is expected to be maintained. Revenue from the taxi business in Singapore is expected to increase with more cashless transactions and new replacement taxis while revenue from the taxi business in China is expected to increase with a larger fleet in Chengdu. Revenue from the taxi business in the UK is expected to be impacted by the weaker Sterling Pound while revenue from the taxi business in Vietnam is expected to be maintained. Revenue from the driving centre business in Singapore and China is expected to be maintained. Revenue from the vehicle inspection and testing business in Singapore is expected to improve. Revenue from the car rental and leasing business in Singapore is expected to improve with higher utilisation while revenue from the Malaysia and China businesses is expected to be maintained. Revenue from the automotive engineering business is expected to be maintained. ------------------------------------- 6
Background ComfortDelGro is the world s second largest publicly-listed land transport company with a total fleet size of more than 46,300 buses, taxis and rental vehicles. It operates in seven countries - Singapore, China, the United Kingdom, Ireland, Australia, Vietnam and Malaysia giving it the broadest footprint amongst its international peers. Currently, overseas ventures account for 42.0% of Group revenue. The Group aims to derive 70% of its total revenue from overseas within the next four to six years. For further clarification, please call: Tammy Tan Group Corporate Communications Officer ComfortDelGro Corporation DID: 6383-8021/9683-0732 Email: tammytan@comfortdelgro.com 7