Global Yellow Pages Limited Results for six months period ended 31 - - PowerPoint PPT Presentation

Global Yellow Pages Limited

Results for six months period ended 31 December 2015

12 February 2016

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This presentation contains certain forward looking statements with respect to the financial condition, results of operations and business of Global Yellow Pages Limited (“GYP”) and certain of the plans and

• bjectives of the management of GYP. Such forward looking statements

involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of GYP to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward looking statements were based on numerous assumptions regarding GYP’s present and future business strategies and the political and economic environment in which GYP will operate in the future.

Disclaimer

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Presentation Outline

• Overview
• Financial Highlights
• Outlook
• Pakuranga Plaza shopping mall

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Overview

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Results Overview - 6 Months Period Ended 31 December 2015

 Group recorded 21.2% increase in revenue to S$20.7 million

• The Group’s revenue for the six months ended 31 December 2015 was

S$20.7 million, an increase of S$3.6 million or 21.2% as compared to the corresponding period last year due mainly to new rental income from Pakuranga Plaza Ltd (“PPL”), and royalty income from licensing of intellectual property rights

• f

Wendy’s Supa Sundaes brand (“Wendy’s”), partly offset by lower revenue from the Search business.

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 Group recorded other gains (net) of S$3.1 million

• Other gains of S$3.1 million were S$1.6 million higher than the

corresponding period last year due mainly to the one-off non cash S$1.2 million gain on reclassification of currency translation reserves to income statement arising from the reclassification of investment in Yamada.

 Total expenses increased 20.4% to S$18.4 million

• Total expenses of S$18.4 million were S$3.1 million or 20.4% higher than

the corresponding period last year due mainly to higher interest on borrowings, higher staff cost and one-off non-cash other expenses of S$2.3 million for dilution of interest and fair value loss arising from the reclassification of investment in Yamada. Included in the 6 months period ended 31 December 2014 was a

• ne-off

S$1.1 million loss

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reclassification of currency translation reserves to income statement arising from disposal of equity interest in a foreign associated company.

• Excluding the one-off S$2.3 million loss for Yamada and S$1.1 million loss

for the foreign associated company, total expenses for 6 months ended 31 December 2015 were $16.1 million, an increase of 13.4% compared to S$14.2 million for corresponding period last year.

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Results Overview - 6 Months Period Ended 31 December 2015

 Group posted a 22.4% increase in net profit to S$4.6 million

• Group posted a net profit of S$4.6 million for the six months ended 31

December 2015 compared to net profit

• f

S$3.7 million in the corresponding period last year. Excluding the one-off non-cash items for Yamada and the foreign associated company, the Group would have recorded a net profit of S$5.7 million for the six months ended 31 December 2015 compared to net profit

• f

S$4.8 million in the corresponding period last year.

• The property and food & beverage segments contributed S$2.5 million in

the Group’s net profit for H1FY16.

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Results Overview - 6 Months Period Ended 31 December 2015

Financial Highlights

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Financial Highlights

(1) Based on weighted average number of ordinary shares in issue (excluding treasury shares) of 174.4 million shares as at 31 December 2015 and 31 December 2014 after adjustment for Share Consolidation completed in May 2015.

12.4 5.9 6.7 5.0 S$’million

Q2 FY2016 (1 Oct 2015 to 31 Dec 2015) Q3 FY2015 (1 Oct 2014 to 31 Dec 2014)

Change Revenue Operating Profit Profit before Tax Net Profit EPS (cents)(1) 12.9 5.9 4.4 2.51 4.4% 0.2% 25.1% 26.3% 28.1% 5.9 EBITDA 6.6 3.49 11.5%

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7.5

Financial Highlights

(1) Exclude one-off S$1.1 million net loss on reclassification of investment in an associated company to available-for-sale financial asset. (2) Exclude a one-off S$1.1 million loss on reclassification of currency translation reserve to income statement arising from the disposal of a foreign associated company. (3) Exclude one-off items mentioned in (1) and (2) and based on weighted average number of ordinary shares in issue (excluding treasury shares) of 174.4 million shares as at 31 Dec 2015 and 31 Dec 2014 after adjustment for Share Consolidation completed in May 2015.

17.1 3.5 4.4 5.5 2.75 S$’million

6M FY2016 (1 Jul 2015 to 31 Dec 2015) 6M FY2015 (1 Jul 2014 to 31 Dec 2014)

Change Revenue Operating Profit Profit before Tax Net Profit Adjusted EPS (cents)(3) 20.7 3.7 4.6 3.14 21.2% 103.6% 23.7% 22.4% 14.2% 7.1 Adjusted Net Profit/(Loss) Adjusted EBITDA 5.7(1) 9.6(1) 4.8(2) 18.0% 6.8(2) 41.7%

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Major Changes in Net Profit (2QFY16 vs 3QFY15)

S$’million Revenue Other gains (net) Expenses Net Profit 0.5 1.1 0.1 0.1 Income tax expense 1.5 Share of results of associated company 0.9

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Major Changes in Net Profit (6 months)

3.1 0.2 Net Profit 0.9 Revenue Other gains (net)* Expenses** Income tax expense 3.6 1.6 S$’million

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Share of results of associated companies 1.0

* Including one-off S$1.2 million gain for Yamada ** Including one-off S$2.3 million loss for Yamada and S$1.1 million loss for a foreign associated company

Adjusted for one-off items:

Gain on reclassification of currency translation reserves arising from reclassification of investment in Yamada* Loss on reclassification of currency translation reserves**

1.2 1.1 Adjusted Net Profit 0.9 2.3

Dilution of interest and fair value loss arising from reclassification of investment in Yamada**

Expenses

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S$’million Change Printing and material costs Staff costs Finance expenses Other expenses Depreciation and amortisation 1.0 3.5 0.9 2.6 0.7 1.4 3.1 0.2 3.3 0.6 27.3% 12.6% N.M. 11.3% 20.6% Total Expenses 8.6 8.7 1.7%

Q2 FY2016 (1 Oct 2015 to 31 Dec 2015) Q3 FY2015 (1 Oct 2014 to 31 Dec 2014)

Expenses

S$’million Change Staff costs Finance expenses Other expenses* Depreciation and amortisation Total Expenses 6.4 0.3 4.9 1.2 14.2 7.1 4.9 1.7 1.4 16.1 9.3% 0.1% 13.4% N.M. 21.2%

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* Excluding one-off S$2.3 million loss for Yamada for 6M FY2016 and S$1.1 million loss for a foreign associated company for 6M FY2015 6M FY2016 (1 Jul 2015 to 31 Dec 2015) 6M FY2015 (1 Jul 2014 to 31 Dec 2014)

Printing and material costs 1.0 1.4 25.8%

Balance Sheet Highlights

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30 Jun 15 Cash & cash equivalents Total assets Total liabilities Shareholders’ equity* Current ratio Debt / Equity 7.7 149.2 80.8 69.1 1.4x 1.1x S$’million

* excluding non-controlling interests

31 Dec 15 9.8 157.0 85.4 72.2 1.8x 1.0x

Outlook

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Outlook

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 Against a backdrop of continued uncertainties in the global economic

markets, the business environment is expected to remain challenging with sales in the search business continuing to decline. The Company will continue its efforts to improve the search business and in particular its digital offerings.  The Group’s strategy to diversify into property and food & beverage sectors has helped mitigate the decline in search business, contributing to an overall net S$3.6m increase in the Group’s revenue in H1FY16 from the corresponding period last year.  The Company’s Pakuranga Plaza shopping mall in Auckland, New Zealand contributed S$1.5m to net profits in H1FY16. We are also actively engaging with the local authority on the redevelopment plans for the property.

Outlook

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 The Group’s licensing of Wendy’s intellectual property rights contributed S$1.0

million to net profits in H1FY16. The Group’s acquisition of Supatreats Asia Pte Ltd on 1 January 2016 has expanded the Group’s foothold into the retail master franchise and supply chain business for Wendy’s brand of ice cream and treats in Australia and New Zealand with a network of over 150 stores.  The Group also announced on 7 January 2016 the collaboration agreement entered into with Aimers Co Ltd to develop the Wendy’s business in China, Korea and Japan and the Gang Ti business in Korea, Japan, South East Asia, New Zealand and Australia.  With the expiry of the URA awarded river taxi licence on 31 December 2015, the Company’s 50% owned subsidiary, Singapore River Explorer Pte Ltd (“SRE”) had ceased operations. There is an outstanding loan of $6.3m as at 31 December 2015 due from SRE to the Company and the Company has provided a corporate guarantee

• f approximately $0.8m for SRE’s repayment obligations to a third party lender. This

is likely to have a material impact on the Group’s FY16 performance if SRE is unable to meet its repayment obligations to the Company. The Company has commenced action against SRE on 2 February 2016 by way of a writ of summon in respect of the

• utstanding

loan. The Company will make further announcement(s)

• n

the proceedings as and when appropriate.

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Key statistics as at H1 FY2016

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NZD 3.6m

Net Property Income** : Weighted average lease expiry by gross rental income : Occupancy rate : Total retail sales MAT*** : Shopper traffic MAT*** :

3.1 years NZD98.7m 4.9m 98%

* Valued as at 30 June 2015 by Bayleys Valuation Limited ** Before interest and tax expense *** MAT : Moving annual total

Property Valuation* :

NZD 96.5m

Thank You

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