27 April 2012

Q4 & Full Year FY2011/12 Results Presentation

Financial year ended 31 March 2012

Singapore Post Limited (Reg. No. 199201623M)

ContentsExecutive summaryGroup resultsSegment resultsFinancial position, cash flows, dividend

Developments & outlook

The following presentation contains forward looking statements by themanagement of Singapore Post Limited ("SingPost"), relating to financial trendsfor future periods, compared to the results for previous periods.

Some of the statements contained in this presentation that are not historicalfacts are statements of future expectations with respect to the financialconditions, results of operations and businesses, and related plans andobjectives. Forward looking information is based on management's currentviews and assumptions including, but not limited to, prevailing economic andmarket conditions. These statements involve known and unknown risks anduncertainties that could cause actual results, performance or events to differmaterially from those in the statements as originally made. Such statements arenot, and should not be construed as a representation as to future performanceof SingPost. In particular, such targets should not be regarded as a forecast orprojection of future performance of SingPost. It should be noted that the actualperformance of SingPost may vary significantly from such statements.

“$” means Singapore dollars unless otherwise indicated.

Forward-looking Statements – Important Note

3

Executive summary

FY2011/12 – Getting ready for the future

Revenue

Proposed final dividend

$145.9M3.1%

Operating expenses

$119.4M13.7%

Q4 FY2011/12 FY2011/12

Total 6.25¢ per share

$578.5M2.2%

$446.1M8.3%

Underlying net profit

$26.8M23.1%

$135.4M9.5%

2.50¢per share

• Performance impacted by industry challenges, business environment and cost pressures

• Significant investments to build business in SingPost’s accelerated transformation

• Commitment to shareholders unchanged

4

Group results: Q4 FY2011/12 P&L highlights

* Profit after tax attributable to equity holders of the Company; underlying net profit excludes one-off items.

$M Q4 FY10/11

Q4 FY11/12

% change

Revenue 141.5 145.9 +3.1%

Other income 10.1 14.3 +41.0%

Operating expenses 105.1 119.4 +13.7%

Operating profit 46.6 40.8 (12.4%)

Share of profit/(loss) of assoc & JVs (0.2) 0.2 n/m

Net finance costs 2.1 3.8 +83.1%

Net profit* 37.0 30.6 (17.4%)

Underlying net profit* 34.8 26.8 (23.1%)

Growth in Logistics and Retail; steady Mail

Reversal of mark-to-market loss on ELN; higher recognition of deferred gain on IPR

Investment in resources; cost pressures

Contributions from new associates

Near term impact from investing for the future

5

Group results: FY2011/12 P&L highlights

* Profit after tax attributable to equity holders of the Company; underlying net profit excludes one-off items.

$M FY10/11 FY11/12 % change

Revenue 565.8 578.5 +2.2%

Other income 52.5 50.5 (3.8%)

Operating expenses 411.8 446.1 +8.3%

Operating profit 206.6 182.9 (11.4%)

Share of profit/(loss) of assoc & JVs (0.5) 0.7 n/m

Net finance costs 11.0 9.9 (9.6%)

Net profit* 161.0 142.0 (11.8%)

Underlying net profit* 149.6 135.4 (9.5%)

Growth in Logistics and Retail; flat Mail contributions

Non-cash mark-to-market loss on ELN; lower recognition of deferred gain on IPR

Investment in resources; cost pressures

Contributions from new associates

Lower interest rates

Year of investing for the future

Impact on profitability as we invested for the future

6

Group results: Revenue breakdown

Revenue by business segments Revenue by geographic distribution

Note: FY10/11 figures in italics and brackets

Building a more balanced revenue and earnings portfolio

• Increasing proportion of contributions from faster-growing Logistics and Retail segments

• Growth in regional entity, Quantium Solutions, boosted overseas contributions

7

Group results: Q4 FY2011/12 Expenses

Impact of investing in resources for growth and other cost pressures

Operating expenses

Labour & related expenses

Volume related expenses

Administrative and other expenses

Selling expenses

Depreciation

$47.5M7.8%

$41.5M10.4%

$18.1M12.5%

$8.7M93.8%

$3.6M28.7%

Labour & related39.8%

Admin & others15.1%

Dep7.3%

Selling3.0%

Volume related34.8%

$119.4M13.7%

8

Segment results: Mail Q4 FY2011/12

Slowdown in Mail revenue; higher business costs

Revenue Operating profit$96.4M0.2%

Revenue breakdown: domestic mail decline offset by growth in international mail and philatelic

Domestic mail

International mail

Hybrid mail

Philatelic

$29.9M13.0%

$58.3M2.8%

$31.7M5.4%

$4.7M1.3%

$1.6M20.2%

9

Segment results: Mail FY2011/12

Flat Mail revenue; higher business costs

Revenue Operating profit$385.4M0.0%

Revenue breakdown: domestic mail decline offset by growth in international mail, hybrid mail and philatelic

Domestic mail

International mail

Hybrid mail

Philatelic

$133.1M6.0%

$237.7M0.5%

$123.5M0.5%

$19.2M0.8%

$5.0M3.5%

10

Segment results: Logistics Q4 FY2011/12

Continued revenue growth; impact of investments in resources

Revenue

Revenue breakdown: improvements in all business lines

Quantium Solutions

Speedpost

Others*

Operating profit

$35.1M7.4%

$16.1M10.4%

$2.8M5.7%

$54.0M8.2%

$0.4M79.3%

* vPOST, Transhipment

11

Segment results: Logistics FY2011/12

Investing in resources to build regional logistics business

Revenue

Revenue breakdown: improvements in all business lines

Quantium Solutions

Speedpost

Others*

Operating profit

$141.4M8.7%

$62.2M7.3%

$11.6M14.4%

$215.3M8.6%

$8.9M35.2%

* vPOST, Transhipment

12

Segment results: Retail Q4 FY2011/12

Retail – agency, products and others *

Financial services **

Inter-segment

Operating profitRevenue $18.2M9.2%

$2.9M48.0%

$5.8M8.6%

$5.8M20.9%

$6.5M0.8%

Improved business performance by retail and financial services

Revenue breakdown: agency services decline offset by growth in retailproducts, Clout Shoppe and financial services**

* Including Clout Shoppe** SpeedCash sold in March 2011

13

Segment results: Retail FY2011/12

Retail – agency, products and others *

Financial services **

Inter-segment

Operating profitRevenue $69.4M3.8%

$9.8M3.3%

$21.8M0.9%

$21.0M11.3%

$26.6M2.4%

Growth in performance despite higher business costs

Revenue breakdown: growth in retail products, Clout Shoppe offsetlower agency, financial services** contributions

* Including Clout Shoppe** SpeedCash sold in March 2011

14

Financial position, cash flows, dividend

Strong financial positionHealthy cash flows

@ 31 Mar 2011

@ 31 Mar 2012

Shareholders’ equity $326.1M $659.8M

Borrowings $503.0M $505.7M

(Net debt)/Net cash ($164.3M) $111.6M

Debt to equity 51.4% 76.6%

EBITDA to interest expenses 16.3x 17.2x

FY10/11 FY11/12

Net cash from operating activities 186.9 176.6

Net cash used in investing activities (98.1) (77.4)

Net cash provided by/(used in) financing activities (140.3) 179.4

Net increase/(decrease) in cash (51.5) 278.6

Cash & cash equivalents 338.7 617.4

Proposed Final Dividend2.5 cents per share

15

Developments & outlook

Challenges in all business segments• Mail revenue slowdown• Cross border mail decline in Logistics• Rising costs

Opportunities for SingPost• E-commerce• E-fulfilment• Regional logistics

16

Developments & outlook

Getting Ready for the Future

(B) Focus on increasing productivity

• Managing labour cost increases through productivity enhancements

• Exploring new technologies, resources and infrastructure to furtherimprove productivity

(C) Continued emphasis on Singapore market

• Singapore market remains important – home base with >80%revenue contribution

• Committed to social obligations and Quality of Service standards

• New services in the pipeline

(A) Transformation programme: Ready for the future

• Continued execution through to FY2014/15

• Driving growth – organically and inorganically; regional

• Focus on enablers – people, IT and operations

• 5 business pillars with specific growth initiatives STRONG ENABLERS: IT, HR, OPS

A value provider which fulfills customer needs with lean and innovative solutions in five businesses

STRONG, REGIONAL ANDDIVERSIFIED GROUP

Mail (Postal)

Digital Services Logistics e-Commerce Retail &

Fin’l Svcs

The complete set of financial statements is available on SGXNET and our website at www.singpost.com.