Ctt - Correios De Portugal Sa · EURONEXT:CTT

Ctt - Correios De Portugal Sa — CTT – Correios de Portugal — H1 2016 Earnings Presentation

22 slides from Ctt - Correios De Portugal Sa's earnings presentation, Aug 4, 2016

  1. Slide 1: CTT – Correios de Portugal, S.A. 1H16 Results Presentation

    CTT – Correios de Portugal, S.A. 1H16 Results Presentation 4 August 20161

  2. Slide 2: Disclaimer

    Disclaimer DISCLAIMER This document has been prepared by CTT – Correios de Portugal, S.A. (the “Company” or “CTT”) exclusively for use during the presentation of the 1st semester 2016 results. As a consequence thereof, this document may not be disclosed or published, nor used by any other person or

  3. Slide 3: Agenda: Key highlights, Other financials, Business units, Outlook

    01. Key highlights 02. Other financials 03. Business units performance 04. Outlook 3

  4. Slide 4: Key highlights: Banco CTT becomes a reality

    KEY HIGHLIGHTS: BANCO CTT, A REVENUE DIVERSIFICATION LANDMARK AND A LONG-STANDING CTT AMBITION, BECOMES A REALITY Implemented a price update, corresponding to an average annual 1.3% 1 February increase Opening of Banco CTT to the public in 51 CTT post offices and a flagship 18 March branch Signature

  5. Slide 5: Key highlights: 1H16 profitability comparison

    KEY HIGHLIGHTS: 1H16 PROFITABILITY COMPARISON IMPACTED BY THE EXTRAORDINARILY HIGH PLACEMENT OF PUBLIC DEBT CERTIFICATES IN JAN.15 AND BY BANCO CTT COSTS Financial and operational performance € million, except when indicated otherwise Including Banco CTT Excluding Banco CTT 4 Financial indicators: 1

  6. Slide 6: Key highlights: revenues comparison

    KEY HIGHLIGHTS: REVENUES COMPARISON INFLUENCED BY THE STRONG PLACEMENT OF PUBLIC DEBT CERTIFICATES IN JAN.15 & THE ACCELERATED RESTRUCTURING IN SPAIN IN 1H16 1H16 recurring revenues Revenues breakdown € million; % change vs. prior year; % of total € million Banco CTT -4.4% Financial Services €0.2m (

  7. Slide 7: Key highlights: continuous efficiency measures and operating costs

    KEY HIGHLIGHTS: CONTINUOUS EFFICIENCY MEASURES ALLOW THE COMPANY TO INCORPORATE BANCO CTT AND STILL ACHIEVE 1.6% DECLINE IN RECURRING OPERATING COSTS 1H16 recurring operating costs 1 Operating costs breakdown € million; % change vs. prior year; % of total € million Other -1.6% €12.4m (-11.7%) 5% -4.

  8. Slide 8: Key highlights: EBITDA comparison

    KEY HIGHLIGHTS: EBITDA COMPARISON IMPACTED BY BANCO CTT LAUNCH AND FINANCIAL SERVICES / REGISTERED MAIL (WITH HIGH EBITDA MARGINS) REVENUES DECLINE 1H16 recurring EBITDA Recurring EBITDA 3 breakdown € million; % change vs. prior year; % of total € million -17.3% Banco CTT -€8.1m (N/A) -8.1% Financia

  9. Slide 9: Agenda: Other financials

    01. Key highlights 02. Other financials 03. Business units performance 04. Outlook 9

  10. Slide 10: Other financials: cash position remains strong

    OTHER FINANCIALS: THE CASH POSITION REMAINS STRONG, DESPITE THE IMPACTS OF BALANCE SHEET OPTIMISATION, DIVIDEND PAYMENT AND BANCO CTT LAUNCH Cash flow Adjusted cash at the end of the period € million, % change vs. 1H15 € million 279.0 Reported Adjusted 1 1H16 ∆% 1H16 ∆% From operating activities 2 1

  11. Slide 11: Other financials: balance sheet and seasonal financial services payables

    OTHER FINANCIALS: THE BALANCE SHEET REFLECTS A SEASONAL INCREASE IN FINANCIAL SERVICES PAYABLES Balance Sheet – 30 June 2016 € million; % change vs. 31 December 2015 €1,221m €1,221m (+9%) (+9%) Net financial debt (cash) + ST&LT debt: €11m FS payables + Net FS payables: €450m €453m (+37%) Cash & cash

  12. Slide 12: Agenda: Business units performance

    01. Key highlights 02. Other financials 03. Business units performance 04. Outlook 12

  13. Slide 13: Business units performance: Mail

    BUSINESS UNITS PERFORMANCE: SCALABILITY & EFFICIENT USE OF NETWORKS BY OTHER BUSINESS UNITS DRIVES MAIL PROFITABILITY 1H16 Mail revenues by type Recurring operating costs 2 Recurring EBITDA 2 € million, % change vs. prior year € million € million -4.1% USO Parcels Other 1 +5.2% €3.0m (-7.8%) €32.7m

  14. Slide 14: Business units performance: Express & Parcels

    BUSINESS UNITS PERFORMANCE: TERMINATION OF LOSS-MAKING CONTRACTS IN SPAIN AFFECTING E&P REVENUES, BUT ALREADY WITH POSITIVE IMPACT ON EBITDA 1H16 E&P revenues by region Recurring operating costs 2 Recurring EBITDA 2 € million, % change vs. prior year € million € million -7.7% Mozambique +84.5% 62.8

  15. Slide 15: Business units performance: Financial Services

    BUSINESS UNITS PERFORMANCE: HIGH PLACEMENT OF PUBLIC DEBT CERTIFICATES IN JAN.15 CONTINUES TO IMPACT THE FS COMPARISON 1H16 FS revenues by type Recurring operating costs 2 Recurring EBITDA 2 € million, % change vs. prior year € million € million -7.2% Credit Other 1 -34.7% €0.2m (~0%) €2.6m (>100%)

  16. Slide 16: Business units performance: Banco CTT

    BUSINESS UNITS PERFORMANCE: BANCO CTT SPEND WITHIN TARGET; CUSTOMER ON-BOARDING, THE KEY METRIC FOR 2016, IS PROGRESSING WELL 1H16 Banco CTT key indicators € million ASSETS 21.2 €8.2m €4.2m 1.2 Recurring Non-rec. €22.9m Cash & cash equivalents & other 2 op. costs op. costs €61.1m Financial assets &

  17. Slide 17: Agenda: Outlook

    01. Key highlights 02. Other financials 03. Business units performance 04. Outlook 17

  18. Slide 18: Outlook: scalability of assets and optimisation measures

    OUTLOOK: CTT WILL CONTINUE TO RELY ON THE SCALABILITY OF ITS ASSETS & OPTIMISATION MEASURES TO BOOST REVENUES & MAXIMISE EFFICIENCY 1H16 RESULTS 2H16 PERFORMANCE DRIVERS THE DEFINED STRATEGY FOR THE YEAR EXPECTED TO BRING PERFORMANCE UPDATE NEW SOURCES OF REVENUES & BS OPTIMISATION MEASURES =• NEW E

  19. Slide 19: Outlook: full-year guidance update

    OUTLOOK: FULL-YEAR GUIDANCE UPDATE FOLLOWING 1H16 RESULTS INITIAL FY16 GUIDANCE GUIDANCE UPDATE REVENUES  GROWTH IN REVENUES, supported by Banco CTT: & VOLUMES o Decline in addressed mail volumes [-3% / -5%] CTT aims to achieve o Banco CTT 2016 focus to be on customer acquisitions STABLE 2016 REVEN

  20. Slide 20: Appendix: Consolidated results

    APPENDIX: CONSOLIDATED RESULTS Including Banco CTT Excluding Banco CTT 1 Reported Recurring 2 Reported Recurring 2 1H15 1H16 1H15 1H16 1H15 1H16 1H15 1H16 Revenues 367.1 351.1 367.1 349.4 367.1 350.9 367.1 349.2 Operating costs 296.7 294.1 291.5 286.9 293.2 281.7 290.4 278.7 EBITDA 70.4 57.0 75.5 62

  21. Slide 21: Appendix: Non-recurring items affecting the results

    APPENDIX: NON-RECURRING ITEMS AFFECTING THE RESULTS € million 1H15 1H16 ∆ Reported EBITDA 70.4 57.0 -13.4 Non-recurring items affecting EBITDA 5.1 5.4 +0.3 Early termination of a vacant Revenues 0.0 -1.7 -1.7 building lease contract Continuation of the Staff costs 1.3 2.3 +0.9 compensations resultin

  22. Slide 22: CTT Investor Relations

    CTT Investor Relations Upcoming Events: 11 Aug. – New York – Jefferies 2016 Industrials Conference 9 Sep. – Porto – XIII BPI Iberian Conference 12 Sep. – London – UBS Global Transport, Travel & Leisure Conference 13 Sep. – London – JP Morgan Small / Mid Cap Conference 14 Sep. – Edinburgh – Roadshow

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