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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 27-Jul-2005 17:15:52

Announcement No. 00040

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

Announcement Title * Presentation Slides - SingPost Group's unaudited results for the first quarter ended 30 June 2005

Description Attached for information are the presentation slides for the briefing to Analysts on 27 July 2005 on SingPost Group's unaudited results for the first quarter ended 30 June 2005.

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SingPost-PresentationQ1FY06.pdf

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Page 1 of 1MISCELLANEOUS

27/07/2005http://info.sgx.com/webcorannc.nsf/vwprint/1124FED2A2EBC7894825704B0029680F?OpenDocu...

Singapore Post Limited

Quarter 1 FY2005/06 Results

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that could cause actual results, performance or events to differ materially from those in the statements as originally made.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

♦ Introduction

♦Results & Business Highlights

♦ Financial Results

♦ Segmental Overview

♦Cash Flow, Dividends

♦ Summary

3

Introduction

FY05/06FY05/06Controlled, Controlled,

Quality GrowthQuality GrowthFY04/05FY04/05

Investing inInvesting inGrowth and ExpertiseGrowth and Expertise

FY03/04FY03/04PrivatisationPrivatisation of of

SingPostSingPost…… while remaining committed to while remaining committed to

our dividend policyour dividend policy

4

Highlights – Q1 FY05/06 Results

♦ Strong Q1 operating performance— Operating revenue ↑ 8.2%

— Operating profit ↑ 15.9%

— EBITDA ↑ 6.7%

♦ Q1 net profit ↑ 13.2%

— Excluding depreciation impact, net profit ↑ 5.2%

♦ Strong cashflow generation

— Operating cash flow before working capital changes ↑ to S$42.7 million

♦ Inaugural interim quarterly dividend— Payment of 1.25 cents per share on 31 August 2005

5

Highlights – Q1 FY05/06 Results

♦ Q1 OR ↑ 8.2%

♦ Good operating results on strong performance by all three segments – Mail, Logistics, Retail

Group performance

♦ Mail OR ↑ 8.4%♦ Boost from direct mail, international mail,

hybrid mailMail

♦ Logistics OR ↑ 11.4%♦ Strong Speedpost performance

Logistics

♦ Retail OR ↑ 11.1%♦ Growing contributions from remittances, financial

services, vPOSTRetail

OR – Operating Revenue

6

Business Highlights – Q1 Initiatives

Strategic Business Initiatives

Building awareness and promotion of products and services25 May 057 Wonders of the World

10 June 05

10 May 05

Launched

Promotion of direct mail

Creating a virtual mall concept

Strategic Intent

Friday Mailbox Surprise!

Harry Potter book launch

Initiatives

Other Business Initiatives

Yellow Pages nation-wide distributionKeyPost

Green Book nation-wide distributionMyStamp (Tourists / Fantastic Four / IOC)

Product/service

Sembawang Music CDs distribution

Product/service

7

Business Highlights – Q1 Initiatives

♦ CASHOME – our remittance service brand will be supported byvarious payment pipe operators

♦ Continue to work with partners who provide reliable payment pipesto regional countries for different modes of delivery

♦ Promotion of product by active referrals at post offices andadvertisements to create greater product awareness

♦ Rolled out to 9 post offices in Q1; target at least 15 post offices by 31 Mar 06

♦ Good response to roadshows at post offices♦ Rolled out to 18 post offices in Q1; target to double by 31 Mar 06

♦ Marketing programme includes roadshows to promote the service in the communities where outlets are located, as well as AdMail tocreate awareness

♦ Target to open 3 more outlets in FY05/06; opening in Toa PayohNorth and Bukit Batok East by Sep 05

Financial Services Update

As at 27 July 2005

8

Q1 FY05/06 Financial Results

9

Q1 FY05/06 Performance Highlights

♦ Good operating results on strong core business performance

41.9%(1,242)(875)Finance cost (net of finance income)

15.9%36,23031,269Operating profit

12.9%1,8302,101Assoc & JVs

13.3%4,3993,881Other operating income

12.9%(7,230)(6,404)Income tax expense

13.2%

5.2%

6.7%

29,466

27,394

44,489

26,030

26,030

41,694

Net profit*

(excluding depreciation impact)

EBITDA

4.7%(64,983)(62,053)Operating expenses

8.2%96,81489,441Operating revenue

ChangeQ1 FY05/06Q1 FY04/05(S$’000)

* Profit after tax attributable to equity holders

10

Quarterly Performance Overview

♦ Continued improvement in quarterly operating performance

♦ Strong 8.2% quarterly revenue growth

♦ Firm EBITDA growth and strong underlying performance following last year’s investment in growth and expertise

Quarterly EBITDAQuarterly Operating Revenue

Q1 Q2 Q3 Q4

FY03/04 FY04/05 FY05/06

Q1 Q2 Q3 Q4

FY03/04 FY04/05 FY05/06

8.2%

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

6.7%

* Excluding exceptional items

(2.4)%* (0.4)%

11

Q1 FY05/06 Operating Expenses

♦ Change in useful lives of assets reduced depreciation charges

♦ Excluding depreciation impact, operating expenses ↑ 8.1%

10.6%18,05216,326General administrative & others

22.8%6,4208,315Depreciation

4.7%

8.1%

64,983

67,055

62,053

62,053

Total operating expenses

(excluding depreciation impact)

9.1%20,51318,808Traffic & related expenses

7.5%19,99818,604Staff costs

ChangeQ1 FY05/06Q1 FY04/05(S$’000)

12

Q1 FY05/06 Operating Expenses

♦ Direct costs up in tandem with business performance

♦ Indirect costs under control

13.2%2,1231,875- Selling & promotion expenses

2.1%17,16216,807Indirect costs

12.1%27,77224,767- Direct variable costs

8.1%67,05562,053Total operating expenses (excluding depreciation impact)

7.5%19,99818,604- Staff costs

10.3%49,89345,246Direct costs

ChangeQ1 FY05/06Q1 FY04/05(S$’000)

13

Quarterly Performance Overview

46.0%45.7%45.8%46.6% 45.7%

Q1FY04/05

Q2FY04/05

Q3FY04/05

Q4FY04/05

Q1FY05/06

EBITDA* Margins

♦ Profit margins remained strong in Q1 FY05/06

28.1%29.1% 28.1% 27.8%30.4%

Q1FY04/05

Q2FY04/05

Q3FY04/05

Q4FY04/05

Q1FY05/06

Net Profit* Margins

34.5%35.0% 33.7%35.6%

37.4%

Q1FY04/05

Q2FY04/05

Q3FY04/05

Q4FY04/05

Q1FY05/06

Operating Profit* Margins

* Excluding exceptional items

14

Segmental Overview

15

Mail – Q1 FY05/06 Overview

♦ Actively pursuing opportunities and implementing initiatives— Direct mail— International mail— Mailroom management— Hybrid mail operations

Q1 FY04/05 Q1 FY05/06

8.4%

Mail Operating Revenue

Q1 FY04/05 Q1 FY05/06

14.0%

Mail Operating Profit

Q1 FY04/05 Q1 FY05/06

37.3%

39.2%

Mail Operating Profit Margin

16

Mail – Q1 FY05/06 Revenue Breakdown

8.4%77.071.0Mail

ChangeQ1 FY05/06

Q1 FY04/05(S$M)

♦ Strong growth in direct mail— 7.7% ↑ in direct mail traffic — Launch of Friday Mailbox Surprise!

♦ Increased mailroom outsourcing activities

7.5%

3.1

22.2

45.8

3.3

24.4

49.2

Domestic mail International mail Hybrid mail

Q1 FY04/05Q1 FY05/06

10.3%

7.5%

♦ Mailings from new customers as well as increased volume from existing customers

♦ Higher volumes from new customers amidst increasing competitive pressures

17

Logistics – Q1 FY05/06 Overview

♦ Pursuing regional network connectivity

♦ Regular review of rates, service quality and offerings amidst rising fuel costs

♦ Stronger growth in Speedpost Islandwide (lower margins vis a visSpeedpost Worldwide)

Q1 FY04/05 Q1 FY05/06

Logistics Operating Revenue

11.4%

Q1 FY04/05 Q1 FY05/06

2.0%

Logistics Operating Profit

Q1 FY04/05 Q1 FY05/06

14.0%12.8%

Logistics Operating Profit Margin

18

Logistics – Q1 FY05/06 Revenue Breakdown

11.4%13.512.1Logistics

ChangeQ1 FY05/06

Q1 FY04/05(S$M)

♦ Strong domestic traffic growth

♦ Fuel and security surcharge

1.05 1.12

11.012.3

Speedpost Warehousing, fulfilment &distribution

Q1 FY04/05Q1 FY05/06

7.4%

♦ New customers acquired

12.0%

19

Retail – Q1 FY05/06 Overview

♦ Growing contributions from remittance services, financial services and vPOST transactions

♦ Steady improvement in operating profit margin following investment in growth and expertise last year

Q1 FY04/05 Q1 FY05/06

32.0%

Retail Operating Profit

Q1 FY04/05 Q1 FY05/06

8.9%7.5%

Retail Operating Profit Margin

Q1 FY04/05 Q1 FY05/06

Retail Operating Revenue

11.1%

20

Retail – Q1 FY05/06 Revenue Breakdown

11.1%11.410.2Retail

ChangeQ1 FY05/06

Q1 FY04/05(S$M)

♦ Growing contributions from financial services and remittances services

♦ Increasing transactions on vPOST

5.15.2

5.36.1

Agency & others Inter-segment

Q1 FY04/05Q1 FY05/06

18.7%3.4%

21

Cash Flow, Dividends

22

Q1 FY05/06 Cash Flow, Dividends

♦ Strong cashflow generation — Q1 operating cash flow (before working capital changes) rose to S$42.7

million from S$39.5 million

1.25 centsQ2 Interim

1.25 centsQ3 Interim

1.25 + x centsQ4 Final

1.25 centsQ1 Interim

DPS Quarterly Dividends♦ Quarterly dividends starting FY05/06

— Net 1.25 cents per share each quarter

— Difference between target dividend (80-90% of net profit) and minimum of 5.0 cents to be paid out with final dividend where x = target dividend minus 5.0 cents

♦ Inaugural interim quarterly dividend for Q1 FY05/06— Q1 interim quarterly dividend of 1.25 cents per share— Books closure date: 16 August 2005— Payment date: 31 August 2005

23

Summary

24

Summary

♦ Strong business performance — All business units performed well

— Strong operating revenue growth of 8.2%

— Q1 net profit ↑ 13.2% (excluding depreciation impact, ↑ 5.2%)

♦ Controlled, quality growth — Investments in growth and expertise put in place; minimal additional

development and start-up costs expected

— Increase in operating expenses related to business growth; continued control over indirect costs

— Good operating leverage

♦ Quarterly dividends effective Q1 FY05/06— 1.25 cents payable on 31 August 2005

25

Thank You