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Investor Presentation
March 2015
1
Contents
▪ SingPost’s Transformation
▪ Investing in Trusted Communications
▪ Developing eCommerce Logistics
▪ Group Financials
▪ Additional Information – Update on Strategic Developments
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cause actual results, performance or events to differ materially from those in the statements as originally made.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 statements.
“$” means Singapore dollars unless otherwise indicated.
2
Second annual decline
in domestic mail
volumes
Continued escalation in
operating costs
High service quality
expectations as Public
Postal Licensee, despite
declining mail density
New areas of logistics
and ecommerce
are very competitive
Challenges in Operating Environment
3
Our Change Roadmap
Reg
ion
al
Lo
cal
Re
ac
h
Businesses
Logistics eCommerce
Logistics
Infrastructure
Digital
Services
eCommerce
Core Business Adjacent Out of the Box
Transformation
4
SingPost’s Vision
Regional Leader in eCommerce Logistics
and Trusted Communications
4
5
Mail Digital
Services
Retail &
Financial
Services
Regional Leader in
eCommerce Logistics & Trusted Communications
Transforming to Remain Relevant in the Digital Age
Protecting the Core Growing the Wings
eCommerce
Logistics eCommerce
Property
6
Trusted Communications
7
Full Suite of Trusted Communications Solutions
Collection
Sort &
Line
Haul
Delivery DM
Consulting
Info
Mgmt Print
Letter
Shopping
Document/
Mailroom
Mgmt
Customer
Contact
Mgmt
Core Business
Digital / Non-Digital
Mailroom Management
SMS Mail
Interactive Mail Solutions
- Augmented Reality
- ScanDelight
- Sample Store
Innovative Mail Solutions
End-to-end integrated physical & digital mail solutions covering
secure data printing, letter-shopping, delivery and mailroom management
> 1.6M households
and businesses
served in Singapore
100% QoS for local
basic mail delivered
by 2nd working day
> 3M items delivered
each business day
8
Continued Investments in Trusted Communications
Committed to service obligations and high Quality of
Service as Singapore’s Public Postal Licensee
Building innovative channels in digital
communications
$100M investment in postal infrastructure, service
quality and innovation
Managing cost challenges with focus on productivity
and efficiency
9
eCommerce Logistics
10
2014 Asia Pacific online population
1.033 billion
Source: Forrester Research
eCommerce Market Potential
2016F Asia Pacific B2C ecommerce sales
US$675 billion
Source: eMarketer
2016F Asia Pacific ecommerce logistics market
US$175 billion
Source: Forrester/Transport Intelligence
2012-2016 CAGR of 20.5% in Asia Pacific
ecommerce logistics market
Source: Forrester/Transport Intelligence
10
11
Our eCommerce Logistics Network
Warehousing
& Fulfilment
Last Mile Delivery
& Returns
eCommerce
Web Services
Freight, Customs &
Regulations Mgmt
Famous Holdings
- air and sea freight
Quantium Solutions
- warehousing,
fulfilment
General Storage
- self storage
solutions
SP eCommerce
- monobrand sites, omigo
marketplace, vPOST
SingPost Mail
Singapore Parcels
- Speedpost, POPStations
Quantium Solutions
- regional last mile delivery
networks
Associated companies
- ITL, 4PX, GDEX
B2B4C
11
12
Full value chain of ecommerce logistics solutions,
comprising front-end web solutions, forwarding, warehousing and delivery
End-to-End Integrated eCommerce Logistics Solutions
13
Our eCommerce Logistics Customers
Close to 1,000 ecommerce customers across the Group
Growing number of ecommerce
customers across the business
segments
Mono brand sites managed currently
include adidas, Levi’s, Philips amongst
several more, operating across 8
countries in Asia Pacific
Increase in warehousing and delivery
businesses from new customers and
customer growth
POPStation deliveries for Taobao SEA,
Xiaomi, Zalora, Rakuten
14
Revenue Breakdown – eCommerce vs Non eCommerce
Continued growth in eCommerce related revenue in H1
Mail 60% ($69.3M)
eCommerce related revenue H1 FY14/15: 26.9% ($116.1M)
H1 FY13/14: 23.8% ($96.6M)
Logistics 30% ($34.8M)
Retail & eCommerce
10% ($12.0M)
Group Revenue $431.3M
eCommerce related revenue
estimated at 26.9% or $116.1M of
H1 Group revenue
20% YoY growth in ecommerce
related revenue
15
Group Financials
16
Overseas revenue amounted to
$129.4M or 30% of H1 revenue
12.3% YoY growth in H1 overseas
revenue contributions
Logistics businesses contributed about
90% of overseas revenue
Regional Revenue Breakdown
Group Revenue
$431.3M
Overseas
H1 FY14/15: 30.0%
H1 FY13/14: 28.4%
Local
H1 FY14/15: 70.0%
H1 FY13/14: 71.6%
Growing overseas revenue, particularly from Logistics businesses
17
9M FY2014/15 P&L Highlights
Driven by ecommerce activities
Gain on disposal of property, higher
interest income, trade related
currency gains; last year included
provision for restructuring
Continued investments in transformation in FY2014/15
Increased operating costs to
improve service quality in domestic
mail; rising costs of operation in
Singapore; and investment in
transformation
$M 9M
FY14/15
9M
FY13/14
YoY %
change
Revenue 670.9 627.8 +6.9%
Other income 41.8 32.1 +30.0%
Total expenses 567.7 521.5 +8.8%
Share of associated
companies & JVs 3.3 2.4 +34.8%
Pre-tax profit 148.3 140.9 +5.3%
Income tax 27.7 27.2 +1.8%
Net profit * 119.1 112.3 +6.0%
Underlying net profit 116.1 113.7 +2.1%
* Net profit attributable to equity holders
Excluding one-off items, namely gain
on disposal of property and
provisions for restructuring of
overseas operations
18
Mail & Digital Services: 9M FY2014/15 Performance
Mail & Digital Services segment performance
Mail & Digital Services revenue breakdown
$M 9M
FY14/15
9M
FY13/14
YoY %
change
Revenue 376.8 367.6 +2.5%
Operating profit 107.1 109.4 (2.1%)
OP margin 28.4% 29.8%
$M 9M
FY14/15
9M
FY13/14
YoY %
change
Domestic mail 186.9 191.3 (2.3%)
Hybrid mail 31.4 33.9 (7.5%)
Philatelic 2.5 3.3 (22.6%)
International mail 156.0 139.1 +12.1%
Total 376.8 367.6 +2.5%
19
Logistics: 9M FY2014/15 Performance
Logistics segment performance
Logistics revenue breakdown
$M 9M
FY14/15
9M
FY13/14
YoY %
change
Revenue 328.5 289.5 +13.5%
Operating profit 16.6 12.0 +37.7%
OP margin 5.0% 4.2%
$M 9M
FY14/15
9M
FY13/14
YoY %
change
Quantium Solutions 130.7 122.3 +6.9%
Famous Holdings 127.4 100.2 +27.2%
Logistics 70.3 67.0 +4.9%
Total 328.5 289.5 +13.5%
Note: “Logistics” line comprises Singapore Parcels and General
Storage. Certain logistics revenue was reclassified to Quantium
Solutions with the transfer of business lines.
20
Retail & eCommerce: 9M FY2014/15 Performance
Retail & eCommerce segment performance
Retail & eCommerce revenue breakdown
$M 9M
FY14/15
9M
FY13/14
YoY %
change
Revenue 68.0 64.7 +5.2%
Operating profit 7.2 6.8 +6.7%
OP margin 10.6% 10.5%
$M 9M
FY14/15
9M
FY13/14
YoY %
change
eCommerce 19.3 13.4 +44.4%
Financial services 17.7 18.5 (4.5%)
Retail 31.0 32.8 (5.4%)
Total 68.0 64.7 +5.2%
21
Dividend Policy
Barring unforeseen
circumstances, SingPost
will make a minimum
annual dividend payout of
5 cents per share.
Over the past 8 years,
SingPost has paid out an
annual dividend of 6.25
cents per share.
Healthy cash flows support dividend payout
176.6203.0
241.8
119.1 118.1 118.8
FY11/12 FY12/13 FY13/14
Operating Cash Flows Annual Dividend Payout
Period Quarterly dividend per share
Q1 interim 1.25 cents
Q2 interim 1.25 cents
Q3 interim 1.25 cents
Q4 final 1.25 cents +
variable 1.25 cents
Total 6.25 cents
Quarterly dividend payouts
$M
22 22
Additional Information –
Update on Strategic Developments
23
Major Developments
FY14/15 FY13/14
May 2014
Apr 2013
Mar 2014
Acquisition of
facility in Malaysia
Feb 2014
JV in Indonesia with
PT Rantai Bumi Laut
Oct 2013
Jul 2013
Jan 2014
Launch of first mono
brand site (adidas) by
SP eCommerce
Announcement of new
financial services partner
for insurance from 2015
Acquisition of online
sampling platform
Acquisition of customs
broker & freight forwarder,
Tras-Inter Co (Japan)
Issuance and transfer
of shares to Alibaba
Jul 2014
Announcement of
strategic collaboration
with Alibaba Group
Oct 2014
Acquisition of The
Store House in HK
Oct 2014
Postage rate
revision
Acquisition of
customs broker &
freight forwarder,
FS Mackenzie Ltd (UK)
Aug 2014
Oct 2014
Announcement of
investment in Regional
eCommerce Logistics Hub
Dec 2014
Acquisition of parcel
delivery company
Couriers Please
(Australia)
Acquisition of freight
forwarder, Famous
Pacific Shipping (NZ)
Jan 2015
Feb 2015
Proposed
redevelopment
of SingPost
Centre
24
Please visit our website at www.singpost.com for more information.
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