SMRT Info Slides

8/3/2019 SMRT Info Slides

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SMRT CORPORATION LTDSMRT CORPORATION LTD

Deutsche Bank Corporate DayDeutsche Bank Corporate Day

Regional InfrastructureRegional Infrastructure

24 June 200524 June 2005

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IntroductionIntroduction

Listed July 2000, SMRT Corporation is first listedmetropolitan rail operator in the world.

Dominant operator of Singapores rail system;significant bus and taxi operator.

Reaps increasing revenues from retail and advertising,as well as engineering consultancy, O&M and relatedservices.

AAA-rated, MSCI Singapore indexed stock with marketcapitalisation of approx. S$1.6b.

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MilestonesMilestonesNov 1987 Commenced first revenue train service

Apr 1998 Entered into Licence & Operating Agreement with LTA tooperate EW and NS lines for 30 years till 2028

Oct 1999 Awarded licence to operate Bukit Panjang light rail firstdriverless system in Singapore till 2028

Jul 2000 Listing of SMRT shares on SGX

Aug 2001 Awarded licence to operate Circle Line for 10 years,renewable for next 30 years

Dec 2001 Acquired TIBS Holdings

Dec 2002-3 Integration and consolidation, injection of new blood

2004 Expansion in Taxi and Retail operations


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Core BusinessesCore BusinessesFY2005 Revenue by Business

Rental

3%Taxis

10%

Buses

27%

Advertising

2%

Engrg &

Other

Services

2%

Trains

55%

Light Rail

1%

82% of S$673.5m Group Revenue is fare revenue;18% is non-fare.

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Earnings ProfileEarnings ProfileFY2005 EBIT by Business

Buses9%

Taxis

4%

Rental

15%

Advertising

6%

Engrg &

Other

Services

6%

Trains

54%

More than 30% of Group EBIT * is non-fare.

* Excluding goodwill impairment


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Business Strategy IBusiness Strategy I

Building on StabilityBuilding on Stability

Fare revenue forms bulk of business, providing stable, cash-generating base with expected organic growth of 1-2%annually.

Rail network continues to expand with Boon Lay Extension(2009), Circle Line (2010) and Downtown Extension(2012) for Singapores new Business and Financial Districtand integrated resorts. Ridership is expected to grow andbenefit from sustained economic growth in Singapore.

Government has put in place a transparent and objectivefare adjustment formula.

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Expansion of Rail NetworkExpansion of Rail Network

DTowntown Line

Cross St.

Landmark

Bayfront

NEL operated by SBST


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Business Strategy IIBusiness Strategy II

Extracting SynergiesExtracting Synergies

Create greater synergies, enhance cost efficiency and

productivity, re-engineer business processes, streamline

operations, and re-organise for a lean, efficient and effective

organisation.

Since 2003, merged backroom operations, integrated

repairs and maintenance functions of Trains and Light Rail,

fare operations with IT and system capabilities, and traffic

planning and market development activities.

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Business Strategy IIIBusiness Strategy III

Leveraging StrengthsLeveraging Strengths

Focus on non-fare, higher-yield areas to grow top-line:

Taxis, Retail, Advertising and offshore Engineering

Consultancy, Operations & Maintenance projects.


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Taxi ExpansionTaxi Expansion

Taxi market fully liberalised in Jun 2004. Operators free

to grow fleet size and adjust taxi fares.

In FY2005, SMRT Taxis fleet size increased by 1,000

cabs or 50% to 3,003. Previously limited to 2,000 cabs

or 10% market share.

Hired-out rate exceeds 90%.

Continue to expand our fleet while maintaining at least90% hired-out rate.

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Retail AchievementsRetail Achievements

Revamped retail space at 5 MRT

stations in FY2005, which will

contribute additional revenue of

$4.0m per year from FY2006.

Example: Transformed

underground shopping at Raffles

Place Station into Raffles Xchangelife-style hub concept; retail space

increased 50%.


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Then and NowThen and Now

Then

Now

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Retail Achievements (contRetail Achievements (contd)d)

To date, obtained approval to redevelop shop space at 5

more MRT stations, creating additional 3,000 sqm.

Continue to work closely with authorities on other

stations to create more shop space.


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Future StationFuture Station

Commercial DCommercial Developmentsevelopments

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Commercial DCommercial Developments (contevelopments (contd)d)


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Commercial DCommercial Developments (contevelopments (contd)d)

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AdvertisingAdvertisingThere is much room togrow.

Media team continues tointroduce new and morecreative, interactive mediainventory to attractadvertisers to switch fromtraditional media to SMRT

Media.


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Engineering Consultancy, O&MEngineering Consultancy, O&M

Projects carried in major cities, such as Bangkok,Manila, Taipei, Shanghai, and Nanjing.

Continue to seek out opportunities outside Singapore.

Our competitive advantages are: 18 years of extensive operating experience Reliability in service availability and punctuality * Cost efficiency *

* As benchmarked against 14 largest metros from NOVA andCoMET international associations.

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Business Strategy IVBusiness Strategy IV

Increasing Shareholder ValueIncreasing Shareholder Value

Management performance driven by long term financial

targets and KPIs, such as EVA, ROCE, and corporate

governance with primary objective to increase

shareholder value.

Robust dividend track record, returned more than 50%of profits to shareholders since listing.


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Rising Capital GainsRising Capital Gains

SARS periodfrom Mar-Apr 03

Ex-D andImpact ofSARSon 1QFY04results

Release ofFY04 resultsand finaldividend

Ex-D

Release of1HFY05resultsand interimdividend

Completionof RafflesXchange

Release of

FY05 resultsand finaldividend

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SummarySummary

Key Investment HighlightsKey Investment Highlights

Strong, Stable andDefensive Earningsfrom Fare-revenue

Operations

Rail NetworkExpansion OfferingLong-term Growth

SupportiveGovernment Policieson Public Transport

Financially Sound,providing StrongDividend Support

Leverage off ExistingInfrastructure,

providing New Non-fare Earnings Stream

Overseas ExpansionOpportunities in Core

Competencies


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THANK YOUTHANK YOU

VisitVisit

www.smrt.com.sg/investor_relations.htmwww.smrt.com.sg/investor_relations.htm

for annual reports, announcements andfor annual reports, announcements and

presentationspresentations

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APPENDIXAPPENDIX


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Fare RevenueFare Revenue

Fare revenue is a function of ridership and fares.

Ridership is a function of system route length, macrosocio-economic factors, i.e. growth in population, socialand tourist activity, employment, residential, commercialand industrial development.

Fares are regulated by PTC and reviewed annuallybased on max. fare adjustment formula:

0.5CPI + 0.5WI 0.3%where 0.3 is the productivity index valid for 3 years.

Relative weightage of CPI and WI is to be reviewedevery 3 years.

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Train Ridership GrowthTrain Ridership Growth

91

140

198206

224

244259

278

319337

346

367

387 390 394 391403

0

50

100

150

200

250

300

350

400

450

FY89 FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05

Passengertrips(m)

Original system fullyoperational in 1990

Woodlands extension (Feb 1996)

Opening of Expo

(Jan 2001)

Opening of Dover (Oct 2001) &Changi Airport Station (Feb 2002)

Opening of NEL (Jun 2003)


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History of Fare IncreasesHistory of Fare Increases

Trains/Light Rail:1990 All fares up 10 cents1994 2.7% (to reflect 3% GST)1995 5.3%1997 0.9%2000 2.4%2002 2.5%2005 2.1%Buses:1999 5% rebate on farecard top-up2000 1.5%2001 1.3%2002 2.3%2005 2.1%

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SMRT Info Slides