INVESTORS’ BRIEFING SESSION · 7 2020 Plan Rationalise Post Offices •Relocation, right-sizing or closure •Transform to e-Commerce fulfilment centre •Explore retail operator
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INVESTORS’ BRIEFING SESSION
4th March 2020
REFRESH ● REINVENT ● RECALIBRATE
1
Postal ServicesReduced revenue due to double-digit mail volume decline
2
1,760 1,682
FYE Dec 2018 (9mth) FYE Dec 2019 (9mth)
Revenue(RM million)
-4.4%
OthersContribution from other subsidiaries e.g Pos Digicert, Datapos &Pos ArRahnu inclusive RM3.8 mil from Pos Logistics.
AviationLower cargo tonnage due to cessation of AirAsia business
CourierMainly due to:• Malware attack in October 2019• Intensified competition affecting pricing• General change in consumer walk-in behavior
RM61 million
RM20 million
RM8 million
RM11 million
Financial Highlights
FYE Dec 2019 Revenue PerformanceRevenue decline mainly contributed by Postal Services & Aviation
-242
3
Core Losses
Goodwill Impairment
Aircraft Redelivery
-118Tariff rebalancing to sustain USO & Courier business growth to drive profitability
New management to refocus Pos Logistics business model
Outsourcing of aircraft operations already in effect since December 2019
Core Losses
Goodwill Impairment
Aircraft Redelivery
Loss Before Tax(RM million)
Financial Highlights
FYE Dec 2019 PBT PerformanceContinued mail revenue decline contributed to bigger core losses
-94
-29
Rationalize BusinessPotential divestment in non-core businesses
4
-202
15
-2
32
446 619
232 204
Segmental
Profit/(Loss)
(RM ‘mil)
Revenue
(RM ‘mil)
Postal Services Courier Logistics Aviation
Financial Highlights
Segmental Profit/(Loss) for FYE Dec 2019Sustainable Postal Services will bode well for Group’s profitability
The Transformation Journey Continues…
6
Postal Services
Tariff Rebalancing Will Improve Postal Services’ Sustainability;Potential RM10-15mil Incremental Monthly Revenue
New Postal Rates
Standard Mail (Commercial)
RM0.60 → RM1.30
Standard Mail (Non-Commercial)
RM0.60
Registered Mail (Commercial)
RM2.20 → RM3.10
Registered Mail (Non-Commercial)
RM2.20 → RM2.40
Private Letter box
RM50 → RM200
7
2020 Plan
Rationalise Post Offices• Relocation, right-sizing or closure
• Transform to e-Commerce fulfilment centre
• Explore retail operator model
Focus on Financial Services• Insurance (>RM470m premium sold in 2019, RM500m
target in 2020)
• Microfinancing
• Explore new services
Operational Efficiency • Streamline systems, cashless payment for faster servicing
• Potential equity divestment in Pos Ar-Rahnu
Customer Experience• Adopt Net Promoter Score (NPS) to monitor service level
Whilst Retail Transformation Aims to Improve Monetisation of Post Offices & Elevate Customer Experience
Postal Services
8
Online Shipping Portal Allows Easier Access to Pos Laju Services for SMEs
>17,000 sign-ups
3,400 parcels/day
RM2.8m top-up
purchased
• International shipment• Select Parcel Locker for
delivery• Insurance add-on
• Additional payment integration
• Same-day delivery • Return parcel
2019 Achievement
Launched SendParcel in Aug ‘19
2020 Plan
Enhance SendParcel
Courier
• Pick-up service• E-consignment note
• Delivery Tracking Features
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Improving Digital Presence & Efficiency to Improve Visibilityand Speed
2020 Plan
Mobile App Enhancement
• Prepaid Purchase, Bill Payment, SendParcelIntegration
Workflow Automation
• Automate business processes (e.g. payment reconciliation) via Robotic Process Automation
Cashless Payment
• Introduce eWallet payment option in Post Offices (debit card in Q2)
Analytics & Performance Dashboard
• Performance management, operations planning
New Core Track & Trace• Improved package movement visibility
Courier
101.2%
10
Automated Sorting Systems Will Increase Speed of Parcel Processing and Delivery
2019 Achievement
Distribution Centres with
Semi-Auto Sorting Machines
2020 Plan
Distribution Centres with
Semi-Auto Sorting Machines
Distribution Centres with
Fully-Auto Sorting Machines
Mini Integrated Parcel Centre
+20
parcels processed per hour
saved per day
+20
+6
+1
Before
Today
+60% 1-2
Courier
5
Hours
11
Entrepreneurship Program and Crowdsourcing to Lower Fixed Cost
2019 Achievements
Entrepreneurship Program – POC
19 Riders (Shah Alam & KL)
Crowdsourcing (Pos Rider) – POC
100 Riders (Wangsa Maju)
2020 Plan
Entrepreneurship + Crowdsourcing
1000 Riders
-28% cost/item delivered
+50% items delivered/day
+100% take-home pay vs.
normal employment
Courier
204
12
Expansion of Touchpoints Through Partners
2019 Achievements
Agent Outlets for PosLaju
• 360 Agent Outlets
Grow Parcel Locker Network
• Total 255 Locations; >15,000 Locker Capacity
• 145 New Locations Added
2020 Plan
Expand Agent Outlets
• >2000 Agent Outlets
Increase Parcel Locker Utilization
• 70% Utilization (from ~50%); Brand Awareness Campaigns
Courier
510
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Restructuring of Pos Logistics Aims to Improve Cost Efficiency
Logistics
2020 Plan
Strengthen Freight Forwarding Business.
Leverage On Strong Automotive Sector.
Rationalize Non-performing Business.
Boost Customer Trust By Improving Processes And Systems.
Improve Asset Utilization & Operational Efficiency.
• Asset-lighter approach
Leverage On Group’s businesses (CSR, Bernas, etc.)
2019 Achievements
Venture Into High-yield Services
• Specialized Transport for Linde
• Specialized Transport for CSR
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Forming Strategic Alliances to Boost Pos Aviation’s Competitiveness
2020 Plan
• Inter-terminal transfer & cargo terminal at logistics park (with Airport Authority)
• Flight Service Report application
• Ground Support Equipment simulator
• SIA Engineering Company
Aviation
2019 Achievements
• AMAL Inflight Catering
• Regional cargo hub logistics for ecommerce
• Baggage services report
• Key Account Management
• Outsourcing & potential divestment
Revenue Diversification
Enhanced Service Quality
Partnerships
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REFRESH ● REINVENT ● RECALIBRATE
THANK YOU
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