Slide 1: Fourth quarter 2020 results Analyst call
Fourth quarter 2020 results Analyst call Jean-Paul Van Avermaet, CEO Leen Geirnaerdt, CFO 10 March 2021
Slide 2: Disclaimer and financial calendar
Investor presentation 4Q20 Interim financial report 4Q20 Financial Calendar Disclaimer 05.05.2021 (17:45 CET) This presentation is based on information published by bpost group in its Fourth Quarter 2020 Press Release and 2020 Annual Report, made available on March 9th, 2021 at 5.45pm CET on corpora
Slide 3: Highlights of FY20
Highlights of FY20 FY20 COVID-19 drove outperformance vs. initial 2020 group adjusted EBIT guidance of € 240-270m, through strong development in Parcels and Logistics Topic Results Outlook for 2020 Group € 280.6m Adjusted EBIT adjusted EBIT 6.8% EBIT margin at least € 270m1 Mail & Retail € 171.2m 8.
Slide 4: Highlights of 4Q20
Highlights of 4Q20 4Q20 4Q20 fully in line with our expectations Group operating Mail & Retail Parcels & Logistics Parcels & Logistics income Eurasia N. Am. € 1,194.4m € 34.3m € 22.4m € 13.9m up 7.2% 6.5% EBIT margin 7.1% EBIT margin 3.3% EBIT margin • Total operating income at • Total operating inc
Slide 5: Non-financial highlights
Non-financial highlights 4Q20 CONNECT 2026 Strategic vision built on 7 ambitions Ecozone 3 new fulfilment centres in 2021 100% emission-free distribution network in in Belgium and Germany Mechelen (Belgium) Sustainability strategy Cohesion in society bpost will continue to provide banking Launch of
Slide 6: 4Q20 adjusted EBIT in line with expectations
4Q20 adjusted EBIT in line with expectations 4Q20 Higher EoY peak opex and impact of ransomware attack were partly compensated by strong cost control on discretionary spend across all BUs; while second COVID-19 lockdown impacted M&R negatively € million 69.2 60.5 5.8 -8.7 3.3 -3.4 -17.2 8.6 or € +12
Slide 7: Key financials 4Q20
Key financials 4Q20 4Q20 € million Reported Adjusted1 1 Amortization and impairments of 4Q19 4Q20 4Q19 4Q20 %↑ intangibles recognized during PPA are adjusted. Goodwill impairments of Total operating income 1,113.8 1,194.4 1,113.8 1,194.4 7.2% € 41.4m are also adjusted as they are non-recurring in na
Slide 8: Results by segment 4Q20
Results by segment 4Q20 4Q20 € million M&R PaLo Eurasia PaLo N. Am. Corp Eliminations Group External operating income 456.6 311.8 422.5 3.6 0.0 1,194.4 Intersegment operating income 69.6 4.6 2.4 113.1 -189.7 0.0 Total operating income 526.1 316.4 424.9 116.7 (189.7) 1,194.4 Operating expenses 478.5
Slide 9: Top-line decrease driven by COVID-19 impacts on Advertising Mail and proximity retail
Top-line decrease driven by COVID-19 impacts 4Q20 – M&R on Advertising Mail and on proximity retail M&R external operating income, € million Domestic Mail Transactional Proximity and convenience Operating income decline at € -16.5m i.e. -10.8% underlying volume decline against retail network 4Q19 48
Slide 10: M&R adjusted EBIT decline from COVID-19 top-line evolution
M&R adjusted EBIT decline from COVID-19 top-line evolution, 4Q20 – M&R while higher peak opex was compensated by cost containment € million Mail & Retail 4Q19 4Q20 %↑ Key takeaways 4Q20 External operating income 486.8 456.6 -6.2% • Total operating income declined by € -10.7m (-2.0%) from mail volume
Slide 11: PaLo Eurasia revenue driven by thriving domestic e-commerce
PaLo Eurasia revenue mainly driven by thriving domestic 4Q20 – PaLo Eurasia e-commerce during November lockdown and EoY peak PaLo Eurasia external operating income, € million Parcels BeNe E-commerce logistics Cross-border Parcels B2X1 revenues up 69.9% Revenue up € +5.5m, or € +7.0m Revenue evolutio
Slide 12: Positive EBIT margin development in PaLo Eurasia
Positive EBIT margin development driven by elevated 4Q20 – PaLo Eurasia parcels volumes handled through the mail network € million Parcels & Logistics Europe and Asia External operating income 4Q19 229.9 4Q20 311.8 %↑ 35.6% Key takeaways 4Q20 Parcels BeNe 107.8 168.1 55.9% • Total operating income u
Slide 13: Continued strong e-commerce development at PaLo North America
Continued strong e-commerce development at PaLo 4Q20 – PaLo N. Am. North America despite ransomware impact PaLo North America external operating income, € million E-commerce logistics International mail YoY increase of +9.3% (+17.9% at Revenue decline (-19.4%, or -13.2% 4Q19 392.5 constant exchange
Slide 14: Operating leverage drove PaLo NA adjusted EBIT uplift
Operating leverage drove PaLo NA adjusted EBIT uplift 4Q20 – PaLo N. Am. despite ransomware attack impact € million Parcels & Logistics North America External operating income 4Q19 392.5 4Q20 422.5 %↑ 7.6% Key takeaways 4Q20 E-commerce logistics 369.5 404.0 9.3% • Total operating income increase of
Slide 15: Corporate EBIT down from lower building sales
Corporate EBIT down from lower building sales 4Q20 – Corporate € million Corporate External operating income 4Q19 4.6 4Q20 3.6 %↑ -23.2% Key takeaways 4Q20 Intersegment operating income 105.7 113.1 7.1% • External revenues down by € -1.1m driven by lower building sales. Total operating income 110.3
Slide 16: Seasonality and mix contributed to increased FCF
Seasonality and mix contributed to increased FCF1 4Q20 Reported ‐ € million 4Q19 4Q20 Delta + Cash flow from operating activities 217.6 201.0 -16.6 out of which CF from operating activities before ∆ in WC & provisions 105.8 64.7 -41.2 + Cash flow from investing activities -90.4 -55.6 34.8 = Free cas
Slide 17: Balance Sheet
Balance Sheet 4Q20 € million € million Assets Dec 31, 2019 Dec 31, 2020 Equity and Liabilities Dec 31, 2019 Dec 31, 2020 PPE 1,133.6 1,138.0 Total equity 682.6 583.8 Intangible assets 898.3 771.7 Interest-bearing loans & borrowings 1,449.9 1,443.2 Investments in associates and joint ventures 239.5 0
Slide 18: Financing Structure & Liquidity
Financing Structure & Liquidity 4Q20 € million € million Available Liquidity Dec 31, 2019 Dec 31, 2020 External Funding Dec 31, 2019 Dec 31, 2020 Cash & cash equivalents 670.2 948.1 L o ng -ter m Cash in network 163.6 167.2 Long-term bond1 (1.25% - 07/2026) 650.0 650.0 Transit accounts 105.8 32.2 Ba
Slide 19: Outlook for 2021
Outlook for 2021 Outlook FY21 Group adjusted EBIT in the range of € 265-295m, broadly in line with FY20 which benefited from net positive COVID-19 effect Mail & Parcels & Parcels & Group Dividend Retail Logistics Europe Logistics North & Asia America Total operating income: Mid-single-digit % growth
Slide 20: Full year 2020 figures
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Slide 21: FY20 EBIT fully in line with upped guidance of at least €270m
FY20 EBIT fully in line with upped guidance of at least € 270m FY20 Net positive EBIT impact from COVID-191 as group-wide additional opex and pressure on M&R top-line was more than compensated by strong PaLo Eurasia & North America performance and cost containment € million 310.8 20.9 -30.2 -15.6 28
Slide 22: Key financials FY20
Key financials FY20 FY20 € million Reported Adjusted1 1 Adjustment of € -0.6m at operating FY19 FY20 FY19 FY20 %↑ income level related to the disposal of Alvadis on August 30, 2019 Total operating income 1 3,837.8 4,154.6 1 3,837.2 4,154.6 8.3% Operating expenses 3,300.2 3,635.5 3,300.2 3,635.5 10.2
Slide 23: Results by segment FY20
Results by segment FY20 FY20 € million M&R PaLo Eurasia PaLo N. Am. Corp Eliminations Group External operating income 1,736.1 1,073.9 1,329.2 15.4 0.0 4,154.6 Intersegment operating income 221.8 14.0 6.8 375.2 -617.9 0.0 Total operating income 1,958.0 1,087.9 1,336.0 390.6 (617.9) 4,154.6 Operating
Slide 24: Top-line decrease driven by COVID-19 impacted mail and proximity retail
Top-line decrease driven by COVID-19 impacted mail and FY20 – M&R proximity retail and by deconsolidation of Alvadis M&R external operating income, € million Domestic Mail Transactional Proximity and convenience Operating income decline at € -83.7m i.e. -11.3% underlying volume decline of which: ret
Slide 25: M&R adjusted EBIT impacted by COVID-19 top-line evolution
M&R adjusted EBIT impacted by COVID-19 FY20 – M&R top-line evolution despite lower opex € million Mail & Retail External operating income FY19 1,897.1 FY20 1,736.1 %↑ -8.5% Key takeaways FY20 Transactional 748.0 725.2 -3.1% • Total operating income decline of € -113.8m or -5.5% (€ -113.2m adjusted)
Slide 26: PaLo Eurasia revenue driven by strong e-commerce development
PaLo Eurasia revenue driven by strong e-commerce FY20 – PaLo Eurasia development both domestically and abroad PaLo Eurasia external operating income, € million Parcels BeNe E-commerce logistics Cross-border Parcels B2X1 revenues up 54.7% Revenue up € +39.5m, or € +41.0m Strong revenue development FY
Slide 27: Strong EBIT margin uplift in PaLo Eurasia
Strong EBIT margin uplift driven by stellar growth in FY20 – PaLo Eurasia parcels volumes handled through the mail network € million Parcels & Logistics Europe and Asia External operating income FY19 813.2 FY20 1,073.9 %↑ 32.1% Key takeaways FY20 Parcels BeNe 380.6 547.9 43.9% • Total operating inco
Slide 28: PaLo North America driven by growth at existing clients
Parcels & Logistics North America driven by significant FY20 – PaLo N. Am. growth at existing clients and 2019 new business PaLo North America external operating income, € million E-commerce logistics International mail YoY increase of +23.6%, +27.2% at Declining revenues at The Mail FY19 1,097.5 co
Slide 29: PaLo NA EBIT uplift driven by high e-commerce volumes
PaLo NA EBIT uplift driven by high e-commerce volumes FY20 – PaLo N. Am. translating into increased operating leverage € million Parcels & Logistics North America External operating income FY19 1,097.5 FY20 1,329.2 %↑ 21.1% Key takeaways FY20 E-commerce logistics 1,008.1 1,246.4 23.6% • Total operat
Slide 30: Corporate EBIT decrease driven by lower building sales
Corporate EBIT decrease mainly driven by FY20 – Corporate lower building sales € million Corporate External operating income FY19 30.1 FY20 15.4 %↑ -48.9% Key takeaways FY20 Intersegment operating income 372.0 375.2 0.9% • External operating income decreased by € -14.7m driven by lower Total operati
Slide 31: Positive evolution of FCF driven by payment terms in payables
Positive evolution of FCF1 mainly driven by payment terms in FY20 payables and lower tax related cash flows Reported ‐ € million FY19 FY20 Delta + Cash flow from operating activities 424.2 571.3 147.1 out of which CF from operating activities before ∆ in WC & provisions 405.3 431.2 25.9 + Cash flow
Slide 32: Key contact
Key contact Antoine Lebecq Head of Investor Relations Email: antoine.lebecq@bpost.be Direct: +32 (0) 2 276 29 85 Mobile: +32 (0) 471 81 24 77 Address: bpost group, Centre Monnaie, 1000 Brussels, Belgium 32 4Q20 Analyst Presentation