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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 28-Oct-2005 17:09:21

Announcement No. 00036

>> Announcement DetailsThe details of the announcement start here ...

Announcement Title * Presentation Slides - SingPost Group's unaudited results for the second quarter and half year ended 30 September 2005

Description Attached for information are the presentation slides for the briefing to analysts on 28 October 2005 on SingPost Group's unaudited results for the second quarter and half year ended 30 September 2005.

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Page 1 of 1MISCELLANEOUS

28/10/2005https://www1.sgxnet.sgx.com/web21/sgxnet/LCAnncSubmission.nsf/vwprint/AF305016FD983A5A...

Singapore Post Limited

Quarter 2 & Half-Year FY2005/06 Results

28 October 2005

1

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that could cause actual results, performance or events to differ materially from those in the statements as originally made.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

2

Agenda

♦Highlights

♦ Strategic Overview

♦ Financial Results

♦ Segmental Overview

♦Cash Flow, Dividends

♦ Summary

3

Highlights

FY03/04FY03/04

FY04/05FY04/05

PrivatisationPrivatisation of of SingPostSingPost

FY05/06FY05/06

Investing inInvesting inGrowth and ExpertiseGrowth and Expertise

Controlled, Controlled, Quality GrowthQuality Growth

…… while remaining committed to while remaining committed to our dividend policyour dividend policy

4

Highlights – Q2 FY05/06 Group Results

89.491.5

103.0

96.8

Q1 Q2

FY04/05 FY05/06

EBITDA

Net Profit

Operating Revenue

* Excluding exceptional items and depreciation impact from change in assets’ useful lives

8.2%

12.6%41.7 42.0

45.144.5

Q1 Q2

7.6%

25.826.0

28.127.4

Q1 Q2FY04/05 FY05/06

9.0%

$M

$M

$M

Q2 underlying performance*

6.7%

5.2%

5

Highlights – H1 FY05/06 Group Results

181.0

199.8

H1 FY04/05 H1 FY05/06

EBITDA

Net Profit

Operating Revenue

* Excluding exceptional items and depreciation impact from change in assets’ useful lives

10.4%

83.789.6

H1 FY04/05 H1 FY05/06

7.1%

51.855.5

H1 FY04/05 H1 FY05/06

$M

$M

$M

1st half underlying performance*

7.1%

6

Highlights – Segment Results

1.5 2.0

12.6

15.2

Q2 Q2 FY04/05 FY05/06

Q2 Q2 FY04/05 FY05/06

Logistics

0.71.6

10.612.6

Q2 Q2 FY04/05 FY05/06

Q2 Q2 FY04/05 FY05/06

Retail

Mail

25.7

71.378.5

30.2

Q2 Q2 FY04/05 FY05/06

Q2 Q2 FY04/05 FY05/06

$M

$M

$M

10.1%

17.3%

20.2%

30.8%

18.5%

133.4%

Operating RevenueOperating Profit

7

Highlights

♦ Strong underlying performance in Q2 FY05/06Operating revenue ↑ 12.6% to S$103.0 M

EBITDA * ↑ 7.6% to S$45.1 M

Net profit * ↑ 9.0% to S$28.1 M

♦ Good showing by all business segmentsMail Revenue ↑ 10.1% Operating profit ↑ 17.3%

Logistics Revenue ↑ 20.2% Operating profit ↑ 30.8%

Retail Revenue ↑ 18.5% Operating profit ↑ 133.4%

♦ Dividend payout

Special Dividend 10 cents per share

Regular Quarterly Dividend 1.25 cents per share

* Excluding exceptional items and depreciation impact from change in assets’ useful lives

8

Strategic Overview

9

Strategic Overview

Rejuvenating, ReinventingRejuvenating, Reinventing

♦ Recasting existing products and business in new forms

MyStamp rediscovering stamps

SAMplus repackaging SAM and smart lockers

Friday Mailbox Surprise promoting direct mail

♦ Focusing on sales & marketing

— Proactive drive to attract and acquire customers

– Enlarged sales force; incentive schemes

— Creative initiatives to drive revenue, traffic

– Product launches utilising post office and delivery networks

– Spending on advertising and promotion

– Cross-selling opportunities

10

Strategic Overview

Building on StrengthsBuilding on Strengths……

♦ Strong operational efficiency

♦ Service excellence

♦ Resilient core business model

……Transforming SingPostTransforming SingPost

♦ Focus on service plus sales & marketing

♦ Focus on process, costs, employees

11

Q2 FY05/06 Financial Results

12

Quarterly Performance Overview

♦ Sustained growth in operating performance

— Strong 12.6% quarterly revenue growth

♦ Firm underlying performance

— Improved EBITDA growth

Q1 Q2 Q3 Q4

FY03/04 FY04/05 FY05/06

Q1 Q2 Q3 Q4

FY03/04 FY04/05 FY05/06

Quarterly Operating Revenue Quarterly EBITDA*

8.2%

2.6% 3.2% 2.0% (0.7)% 6.7%0.5%

6.7%

* Excluding exceptional items

(2.4)% (0.4)%

12.6%7.6%

$M $M

13

Q2 FY05/06 Performance Highlights

2.4%30,14429,433Net profit *

5.8%36,49734,501Operating profit

5.7%4,4974,253Other operating income

9.0%

7.6%

28,071

45,123

25,751

41,953

Net profit excluding depreciation impact & exceptional items

EBITDA (excluding exceptional items)

12.6%103,00891,518Operating revenue

ChangeQ2 FY05/06Q2 FY04/05(S$’000)

♦ Strong underlying performance in Q2 FY05/06

* Profit after tax attributable to equity holders

14

Q2 FY05/06 Operating Expenses

♦ Higher costs, namely direct costs, in tandem with growth in business

2.1

9.119.3

34.5

39.5

21.0

3.3

9.3

Direct variable costs Staff costs Selling & promotionexpenses

Indirect costs

$5.0M14.5%

$1.7M8.7%

$1.3M60.5%

$0.2M2.3%$M

Direct costs

15

Q2 FY05/06 Profit Margins

♦ Slight margin decline from higher direct costs, as well as lower contributions from associates & JVs

34.5%35.0%33.7%

35.6%35.3% 33.4%

Q1 Q2 Q3 Q4

Operating Profit Margins

45.7%45.8%46.6% 45.7%43.8%46.0%

Q1 Q2 Q3 Q4

EBITDA Margins

27.8%28.1%29.1% 28.1%28.3% 27.3%

Q1 Q2 Q3 Q4

Net Profit Margins

FY04/05

Underlying performance *

* Excluding exceptional items and depreciation impact from change in assets’ useful lives

FY05/06

16

Half-Year FY05/06 Financial Results

17

H1 FY05/06 Performance Highlights

♦ Good operating results on strong business performance

10.6%72,72765,770Operating profit

7.5%59,61055,463Net profit*

9.4%8,8968,134Other operating income

7.1%

7.1%

55,465

89,612

51,781

83,647

Net profit excluding depreciation impact & exceptional items

EBITDA (excluding exceptional items)

10.4%199,822180,959Operating revenue

ChangeH1 FY05/06H1 FY04/05(S$’000)

* Profit after tax attributable to equity holders

18

H1 FY05/06 Operating Expenses

♦ Higher costs, namely direct costs, in tandem with growth in business$M

3.9

17.6

67.6

37.918.0

5.4

41.0

75.8

Direct variable costs Staff costs Selling & promotionexpenses

Indirect costs

$8.2M12.1%

$3.1M8.1%

$1.5M38.0%

$0.4M2.2%

Direct costs

19

Segmental Overview

20

Mail – H1 FY05/06 Overview

♦ Growth in all business lines – domestic mail, international mail and hybrid mail

♦ Benefiting from efforts and initiatives to grow Mail segmentDomestic mail Direct mail initiatives, mailroom activities

International mail Increased mailings from customers

Hybrid mail Establishing regional presence

H1 FY04/05 H1 FY05/06 H1 FY04/05 H1 FY05/06 H1 FY04/05 H1 FY05/06

9.2% 15.6%36.7%

38.8%

Mail Operating Revenue

Mail Operating Profit

Mail Operating Profit Margin

142.3

52.2

155.560.4

$M $M

21

Mail – Revenue Breakdown

3.2

45.6

22.5

48.7

26.3

3.5

Domestic mail International mail Hybrid mailQ2 FY04/05Q2 FY05/06

6.7%

16.7%

10.1%78.571.3Mail

ChangeQ2 FY05/06

Q2 FY04/05(S$M)

11.1%

6.2

44.7

91.4

6.8

50.7

98.0

Domestic mail International mail Hybrid mailH1 FY04/05H1 FY05/06

7.1%

13.5%

9.2%155.5142.3Mail

ChangeH1 FY05/06

H1 FY04/05(S$M)

9.4%

Second Quarter Performance

First Half Performance

$M$M

22

Logistics – H1 FY05/06 Overview

♦ Strong domestic traffic growth

♦ New customers acquired (e.g. Yellow Pages)

♦ Fuel and security surcharge

H1 FY04/05 H1 FY05/06

Logistics Operating Revenue

H1 FY04/05 H1 FY05/06 H1 FY04/05 H1 FY05/06

15.9%

12.9% 12.9%

Logistics Operating Profit

Logistics Operating Profit Margin

15.6%28.7

24.7 3.73.2

$M $M

23

1.2 2.2

11.412.9

Speedpost Warehousing, fulfilment &distribution and Others

Q2 FY04/05Q2 FY05/06

Logistics – Revenue Breakdown

20.2%15.212.6Logistics

ChangeQ2 FY05/06

Q2 FY04/05(S$M)

15.9%28.724.7Logistics

ChangeH1 FY05/06

H1 FY04/05(S$M)

Second Quarter Performance

First Half Performance

12.9%

90.3%

2.3 3.8

22.324.8

Speedpost Warehousing, fulfilment &distribution and Others

H1 FY04/05H1 FY05/06

10.9%

63.4%

$M$M

24

Retail – H1 FY05/06 Overview

♦ Strong growth in financial services, retail products and vPOSTtransactions

♦ Financial services accounted for about 40% of Retail revenue increase

H1 FY04/05 H1 FY05/06

Retail Operating Revenue

H1 FY04/05 H1 FY05/06 H1 FY04/05 H1 FY05/06

14.9% 80.3% 11.1%

7.0%

Retail Operating Profit

Retail Operating Profit Margin

24.0

20.92.6

1.5

$M $M

25

Retail – Revenue Breakdown

18.5%12.610.6Retail

ChangeQ2 FY05/06

Q2 FY04/05(S$M)

14.9%24.020.9Retail

ChangeH1 FY05/06

H1 FY04/05(S$M)

Second Quarter Performance

First Half Performance

5.15.5 5.3

7.3

Agency & others Inter-segment

Q2 FY04/05Q2 FY05/06

32.3%

3.4%

10.210.7 10.5

13.5

Agency & others Inter-segment

Q2 FY04/05Q2 FY05/06

25.8%

3.4%

$M$M

26

Financial Services Update

Target market:(source: Statistics Dept 2000)♦ Est. 500,000 working population

earning S$1,600 to <$2,500 p.m.

Life insurance statistics (source: Life Insurance Assoc.):♦ Total premiums received:

2004: S$6.56bn 2003: S$5.25bn

Target market:♦ Est. 459,000 foreign workers

from targeted regional markets (Philippines, Thailand, China, Indonesia)

Pawnbroking statistics (1H2004)(source: Registry of Pawnbrokers):♦ Pawnbroking value: S$0.78bn ♦ No. of transactions: 1.66m♦ Oct 2004: 91 pawnshops

Status:♦Continue to work with partners who

provide reliable payment pipes toregional countries for different modes of delivery

Status:♦Promotion by active referrals at post

offices, advertisements and Admail to create greater product awareness

♦Rolled out to 17 post offices; target 20by 31 Mar 06

Status:♦2 new products in Q2 – single premium

plans and personal accident policy♦Rolled out to 34 post offices; target 36 by

31 Mar 06

Status:♦Marketing via roadshows in communities

where outlets are located, as well as AdMail to create awareness

♦2 new outlets in Q3; target 1 more newoutlet by 31 Mar 06

As at 28 October 2005

27

Cash Flow, Dividends

28

Q2 FY05/06 Cash Flow, Dividends

♦ Strong cash flow generation

— Net cash flow from operating activities increased from S$46.9 million to S$61.6 million

— Cash & cash equivalents of S$149.7 million as at 30 September 2005

♦ Dividend payout

— Special dividend of 10 cents per share

— Regular quarterly dividend of 1.25 cents per share

29

Special Dividend

♦ Special dividend

— Special payout of 10 cents per share or about S$191 million

♦ Rationale for special dividend

— Aim to achieve a more optimal capital structure

— Increasing shareholder returns while maintaining financial flexibility

— Retain a strong investment-grade credit profile

♦ Dividend policy unchanged

— Continue to maintain robust dividend policy

— Aim to pay out 5 cents per share or 80-90% of net profit, whichever is higher, barring unforeseen circumstances

30

Outlook

31

Outlook

♦ Operating performance sustainable over next few quarters, barring unforeseen circumstances

♦ Continue to implement initiatives to grow core business in Mail and Logistics

♦ Focused on leveraging Retail network to offer value-added products and services

32

Summary

33

Summary

♦ Strong underlying performance in Q2 FY05/06

— Double-digit operating revenue growth of 12.6%

— Underlying net profit growth of 9.0%

♦ Growth in all business units

— Good operating performance across all segments

— Continuing to build momentum

♦ Dividend payout

— Committed to robust dividend policy

— Special dividend of 10 cents per share

— Regular quarterly dividend of 1.25 cent per share

34

Thank You