Ctt - Correios De Portugal Sa · EURONEXT:CTT
Ctt - Correios De Portugal Sa — CTT - Correios de Portugal — Q1 2020 Earnings Presentation
28 slides from Ctt - Correios De Portugal Sa's earnings presentation, May 6, 2020
Slide 1: 1Q20 Results Presentation
_-—? 1Q20 Results Presentation c{t Committed to deliver 6 May 2020
Slide 2: Disclaimer
fle. Cit RESULTS PRESENTATION | 1920 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 1* quarter 2020 results. As a consequence thereof, this document may notbe disclosed or published
Slide 3: Committed to deliver
ctt Committed to deliver
Slide 4: 1Q20 highlights
fle. ctt RESULTS PRESENTATION | 1920 1Q20 highlights CTT services remain fully functioning, as an integral part of Portugal's critical infrastructure 41.7% -3.7% +6.7% -0.4% Revenues growth driven mainly by banking & financial services EBITDA impacted by the extraordinary business interruptionin Mai
Slide 5: COVID-19 pandemic response
RESULTS PRESENTATION | 1Q20 pect COVID-19 pandemic response CTT’s immediate response to the unprecedented crisis centered on six Key pillars 1. Preserve the health and wellbeing of staff and customers * Daily crisis-management committee, chaired by the CEO * Comprehensive business continuity plan la
Slide 6: Taking a leadership role in e-commerce
pect RESULTS PRESENTATION | 1920 Woe 6 Taking aleadership role in e-commerce . eae ae : we Partnership ip wii CTT has launched various initiatives and partnerships aiming at with Uber to expand ae wih fostering the development of the e-commerce ecosystem “Express for Today” offer medicines and to mo
Slide 7: Mail volumes strongly affected by COVID-19 restrictions
pect RESULTS PRESENTATION | 1Q20 Mail volumes were strongly affected by the restrictions on operations and movement of cargo, businesses and individuals, as a result of the COVID-19 pandemic Mail volumes million items; % change vs. prior year * Several large clients’ statements deliveries and advert
Slide 8: Portuguese parcels and public debt placements benefited from a strong start
fle. Cit RESULTS PRESENTATION | 1920 ¢ se] Portuguese parcels and public debt placements benefited from a strong start to the year Parcels volumes million items; % change vs. prior year * Portuguese parcels volumes benefited from strong B2C growth, driven by e-commerce, despitethe B2B volumes declin
Slide 9: Banco CTT customers flight to safety, strong new deposits
fle. Cit RESULTS PRESENTATION | 1920 Banco CTT customers flight to safety was evidentin the strong capture of new deposits Credit to clients €million * Mortgage activity remained resilient, despite the temporary 50% reduction in business hours in the Retail network since mid-Mar-20 * 321 Crédito cre
Slide 10: Financials
ctt Committed to deliver 02 Financials
Slide 11: Key financial indicators
fle. ctt RESULTS PRESENTATION | 1920 Growth in EBIT and stable Net profitin the quarter, despite the challenging operational environment in Mar-20 Key financial indicators € million; % change vs. prior year Reported 1Q19 1Q20 A% Revenues+ 176.9 179.9 +1.7% Operating costs + 155.9 159.7 +2.4% EBITDA?
Slide 12: Growth in revenues from Banco CTT and Financial Services & Retail
fle. Cit RESULTS PRESENTATION | 1920 Woe 12 Growth in revenues, underpinned by the organic & inorganic contribution of Banco CTT and the strong performance by Financial Services & Retail in the first two months of the quarter Revenues Revenues breakdown € million; excluding specific items; % change
Slide 13: Operating costs practically flat excluding 321 Crédito
fle. Cit RESULTS PRESENTATION | 1920 Woe 13 Operating costs, excluding the inorganic contribution of 321 Crédito, were practically flat Operating costs Operating costs + breakdown € million; % change vs. prior year Other 6.7 (-0.6%) External Supplies 1 5 9 . 7 & Services (+2.4%) 64.7 (+2.4%) 2 88.3
Slide 14: Slight decline in EBITDA
pect RESULTS PRESENTATION | 1920 Oo 14 Slight decline in EBITDA, impacted by the unprecedented business interruption in Mail in Mar-20, despite the positive evolution in banking & financial services EBITDA+ EBITDA? breakdown € million; % change vs. prior year € million; % change vs. prior year 28.0
Slide 15: Strong Balance Sheet - 31 March 2020
fle. Cit RESULTS PRESENTATION | 1920 Woe 1s CTT faces the current period of economic uncertainty with a strong Balance Sheet... Balance Sheet - 31 March 2020 € million; % change vs. 31 December 2019 2,438 {_ inanciat Services payables (€109m;-54.7%) 2,438 Net FS & other payables of Sam €239m&C108mas
Slide 16: Substantial liquidity and low net financial debt
pect RESULTS PRESENTATION | 1Q20 ... substantial liquidity and low levels of net financial debt Cash flow Net financial debt € million; impact on cash flow vs. prior year cork SI 202.0. Specific items affecting EBITDA 0.0 (+5.5) Capex -5.6 yA (+0.8) Change in working capital Operating cash flow Fs 1
Slide 17: Committed to deliver
ctt Committed to deliver
Slide 18: FY20 outlook update
pect FY20 outlook update Apr-20 showed encouraging signs of stabilization in some areas, although mail and financial services remain RESULTS PRESENTATION | 1Q20 under significant pressure Express & Parcels Parcels already at peak levels, due to B2C growth, albeit with lower margins. E-commerce adopt
Slide 19: Committed to deliver
ctt Committed to deliver
Slide 20: Mail: pressure on profitability
fle. ctt RESULTS PRESENTATION | 1920 Pressure on profitability in Mail, as a result of higher-than-expected volumes decline, affected by the lockdown from mid-Mar-20 onwards Revenues! EBITDA12 EBIT13 € million; % change vs. prior year €million €million Transactional €94.9m (-7.9%) 43.9% 20.0 Adverti
Slide 21: Express & Parcels: signs of resilience
fle. ctt RESULTS PRESENTATION | 1920 Woe 21 Parcels showing signs of resilience in revenues, with lower B2B volumes compensated by strong growth in B2C activity, both in Portugal & Spain Revenues EBITDAt EBIT2 € million; % change vs. prior year €million €million -3.9% -27.3% Portugal €24.4m (+6.5%)
Slide 22: Banco CTT: positive net profit for the first time
pect RESULTS PRESENTATION | 1Q20 Woe 22 Another landmark quarter for Banco CTT, achieving positive Net profit for the first time in its short history, with a relevant contribution from the auto loans business line Revenues EBITDAt EBIT2 € million; change vs. prior year €million €million Netinterest
Slide 23: Financial Services & Retail: strong public debt placement
fle. Cit RESULTS PRESENTATION | 1920 Woe 23 Stellar performance in the placement of public debt in the first two months of the quarter drove strong growth in Financial Services & Retail revenues and profitability Revenues? EBITDA2 EBIT3 € million; % change vs. prior year €million €million +47.0% +54
Slide 24: Income statement
fle. ctt RESULTS PRESENTATION | 1920 EBIT growth in the quarter, despite the challenging operational environment in Mar-20 Income statement €million Reported With Banco CTT under equity method 1Q19 1Q20 1Q19 1Q20 Revenues 176.9 179.9 172.3 164.7 Operating costs 155.9 159.7 147.1 147.4 EBITDA 21.0 20
Slide 25: Balance Sheet
fle. Cit RESULTS PRESENTATION | 1920 Woe The Balance Sheet reflects the reduction in the float from Financial Services Balance Sheet € million Reported With Banco CTT under equity method 31-Dec-19 31-Mar-20 31-Dec-19 31-Mar-20 Non-current assets 1,734.7 1,797.8 615.8 610.2 Current assets 778.8 640.7
Slide 26: Cash flow
fle. Cit RESULTS PRESENTATION | 1920 Ove Free cash flow generation doubling from prior year Cash flow €million Reported With Banco CTT under equity method 1Q19 1Q20 420/19 1Q19 1Q20 420/19 EBITDA 21.0 20.2 -0.8 25.1 17.3 -78 Specific items affecting EBITDA 5.6 0.0 -5.5 5.5 0.0 -5.5 Capex 6.3 5.6 -0.
Slide 27: Specific items
fle. Cit RESULTS PRESENTATION | 1920 Woe Minimal amount of specific items with neutral impact on the 1Q20 P&L Specificitems €million 1Q19 1Q20 Specific items detail EBIT excluding Specific items 14.2 9.3 * €0.6m capital gain related to the sale of anon-strategic real estate Specific items 5.6 0.0 as
Slide 28: Investor Relations contacts
Froma parcel to whatever you dream of Froma parcel to whatever you want CTT Correios de Portugal, S.A. Investor Relations ctt Committed to deliver Contacts: Phone: +351 210 471087 E-mail: investors@ctt.pt We connect people and companies From a parcel to whatever tot you wish for ctt.p
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