Ctt - Correios De Portugal Sa · EURONEXT:CTT
Ctt - Correios De Portugal Sa — CTT – Correios de Portugal — Q1 2017 Earnings Presentation
25 slides from Ctt - Correios De Portugal Sa's earnings presentation, April 2017
Slide 1: CTT – Correios de Portugal 1Q17 Results Roadshows
CTT – Correios de Portugal 1Q17 Results Roadshows CTT – Correios de Portugal, S.A. April 2017 1
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 quarter 2017 results. As a consequence thereof, this document may not be disclosed or published, nor used by any other person or e
Slide 3: Company overview, Key highlights, Business units, Appendix
01. Company overview 02. Key highlights Business units 03. Appendix 04. 3
Slide 4: Company overview
01. Company overview 4
Slide 5: A modern and dynamic postal services operator with a diversified portfolio of businesses
COMPANY OVERVIEW: A modern and dynamic postal services operator with a diversified portfolio of businesses 72% 10% 18% Mail Financial Express Banco CTT & Other Services & Parcels 70% 27% 3% MAIL BUSINESS RETAIL SAVINGS & INSURANCE PORTUGAL SPAIN MOZAMBIQUE SOLUTIONS SERVICES CREDIT Transactional Pri
Slide 6: Global postal sector
COMPANY OVERVIEW: The global postal sector is now well diversified and drives the fulfilment of the “internet of things” €424.4bn postal industry E-COMMERCE revenues +2.8% postal industry revenues growth ADVERTISING FINANCIAL SERVICES 37.7% mail share of industry revenues GLOBAL -4.8% decrease in ma
Slide 7: People and things still need to be physically connected
COMPANY OVERVIEW: Going through a significant transformation phase in order to adapt to new market trends Online shopping Internet of A new paradigm and Postal Things an opportunity Leverage on data PEOPLE and technology AND THINGS Digitalisation STILL NEED Substitution effect What can be digital… w
Slide 8: Fine-tuning of the key strategic levers to ensure sustainability of revenues & EBITDA growth
COMPANY OVERVIEW: Fine-tuning of the key strategic levers to ensure the sustainability of revenues & EBITDA growth COMMERCIAL EXCELLENCE Redefine an integrated commercial approach to identify and fully meet our clients’ needs and preferences OPERATIONAL EFFICIENCY Focus on continuous improvement of
Slide 9: Key highlights
02. Key highlights 9
Slide 10: 1Q17 saw stabilisation of the top line; recurring revenues excluding Altice grew 0.9%
KEY HIGHLIGHTS: 1Q17 saw stabilisation of the top line; excluding the Altice impact on the 1Q16 figures, the recurring revenues grew 0.9% (after declining throughout 2016) Financial and operational performance € million, except when otherwise indicated Financial indicators 1Q16 1Q17 Δ€ Δ% Recurring
Slide 11: Strong Financial Services performance and growth in Banco CTT and Tourline drove revenues
KEY HIGHLIGHTS: Strong Financial Services performance and growth in Banco CTT and Tourline drove revenues increase, excluding the Altice 1Q16 impact 1Q17 recurring revenues Revenues breakdown € million; % change vs. prior year; % of total € million Financial Services Banco CTT €1.1m (N/A) -0.5% €17.
Slide 12: Operating costs increased moderately excluding Banco CTT
KEY HIGHLIGHTS: Excluding the increase in Banco CTT costs, expected due to its current development stage, operating costs increased moderately (+1.6%) 1Q17 recurring operating costs Operating costs breakdown € million; % change vs. prior year; % of total € million Other €4.6m (-25.5%) 3% 152.1 +4.3%
Slide 13: Gradual improvement in EBITDA is projected
KEY HIGHLIGHTS: A gradual improvement in EBITDA is projected as the comparables in Mail, E&P, and Banco CTT are expected to ease in the following quarters 1Q17 recurring EBITDA Recurring EBITDA breakdown € million; % change vs. prior year; % of total € million Banco CTT -€5.8m (N/A) -20.2% 35.1 Fina
Slide 14: The solid adjusted cash position was maintained
KEY HIGHLIGHTS: The solid adjusted cash position was maintained Cash Flow € million; % change vs 1Q16 Reported Adjusted 1 1Q17 ∆% 1Q17 ∆% From operating activities 27.1 >> 70.6 >> Cash flow excl. Banco CTT -26.9 -57.6% 16.6 3.5% Banco CTT cash flow 54.0 >> 54.0 >> From investing activities -53.4 <<
Slide 15: Continued expansion of the consolidated Balance Sheet reflects growth of Banco CTT deposits
KEY HIGHLIGHTS: The continued expansion of the consolidated Balance Sheet reflects the growth of Banco CTT deposits; own cash remained stable, close to €200m Balance Sheet – 31 March 2017 € million; % change vs. 31 December 2016 Net financial debt (cash) 1,352 1,352 ST< debt: €9m + Net FS payabl
Slide 16: Business units
03. Business units 16
Slide 17: Mail: strong mix effect despite addressed mail volume decline
BUSINESS UNITS: The impact of the 3.7% addressed mail volumes decline not felt in revenues, mainly due to a strong mix effect resulting from registered mail volumes growth (+12.5%) 1Q17 Mail revenues by type Recurring operating costs Recurring EBITDA € million, change vs. prior year (€; %) € million
Slide 18: Express & Parcels: strong double-digit growth in parcels volumes
BUSINESS UNITS: Strong double-digit growth in parcels volumes offset the impact of the declining legacy banking network business and the loss of Altice revenues 1Q17 E&P revenues by region Recurring operating costs Recurring EBITDA € million, change vs. prior year (€; %) € million € million +2.7% –
Slide 19: Financial Services: swap from savings to treasury certificates drove revenue growth
BUSINESS UNITS: Swap by the public from savings to treasury certificates was the primary driver of the 5.3% Financial Services revenues growth 1Q17 FS revenues by type Recurring operating costs Recurring EBITDA € million, change vs. prior year (€; %) € million € million +2.0% +20.7% 8.3 8.2 9.0 – Sa
Slide 20: Banco CTT quarterly revenues exceeded €1m
BUSINESS UNITS: Banco CTT quarterly revenues exceeded €1m driven by strong consumer credit placement; mortgage product in launching stage Operating revenues Recurring operating costs ASSETS € thousand € million €135.4m Cash & cash equivalents +131% 1Q16 1Q17 €204.6m Financial assets & investments 6.
Slide 21: Appendix
04. Appendix 21
Slide 22: Non-recurring items affecting the results
APPENDIX: Non-recurring items affecting the results € million 1Q16 1Q17 ∆ Reported EBITDA 34.2 24.9 -9.3 Non-recurring items affecting EBITDA 0.9 3.1 2.2 €1.7m from recognised deferred gain due to early termination of vacant Revenues -1.7 0.0 1.7 building lease contract Staff costs 1.1 1.1 0.0 ES&S
Slide 23: Consolidated results
APPENDIX: Consolidated results Banco CTT € million Reported Recurring 1 under equity method 2 1Q16 1Q17 1Q16 1Q17 1Q16 1Q17 Revenues 179.6 177.0 177.9 177.0 179.5 176.2 Operating costs 145.4 152.1 142.7 148.9 141.3 144.8 EBITDA 34.2 24.9 35.1 28.0 38.3 31.4 EBITDA margin 19.0% 14.1% 19.8% 15.8% 21.3
Slide 24: Balance Sheet
APPENDIX: Balance Sheet Banco CTT € million CTT under equity method 1 31-Dec-16 31-Mar-17 31-Dec-16 31-Mar-17 Non-current assets 452.6 482.0 393.2 380.7 Current assets 864.1 870.1 669.9 639.3 Assets 1,316.7 1,352.1 1,063.1 1,019.9 Equity 233.3 244.3 233.3 244.3 Liabilities 1,083.4 1,107.8 829.8 775.
Slide 25: CTT Investor Relations
CTT Investor Relations Upcoming Events: 8 / 9 May – Munich & Frankfurt • Roadshow with MainFirst 16 May – Madrid • Roadshow with Santander 17 / 18 May – Barcelona & Andorra • Roadshow with Haitong 19 May – Paris • Roadshow with BBVA 27 June – London • 13th Annual Goldman Sachs European Bus. Services
CTT – Correios de Portugal — Q1 2017 Earnings Presentation on 6ix