Posti Group Oyj · OMXHEX:POSTI
Posti Group Oyj — Q3 2023 Earnings Presentation
21 slides from Posti Group Oyj's earnings presentation, Oct 25, 2023
Slide 1: Posti Group
Posti Group Operatively good third quarter resulted in improved adjusted EBITDA compared to previous year, despite decreased net sales. January - September 2023
Slide 2: Responsibly delivering on what matters to you
Responsibly delivering on what matters to you your terms
Slide 3: Posti in figures 7-9/2023
Posti in figures 7-9/2023 Net Sales EUR 372.3 million (EUR 395.6 million) Adjusted EBITDA EUR 52.9 million (EUR 44.3 million) Adjusted EBITDA-% 14.2% (11.2%) 3 25.10.2023 * Continuing operations
Slide 4: Q3 2023 Financial highlights
Q3 2023 Financial highlights • Net sales decreased by 5.9% to EUR 372.3 (395.6) million • Adjusted EBITDA increased to EUR 52.9 (44.3) million, or 14.2% (11.2%) of net sales • EBITDA increased to EUR 46.5 (43.7) million, or 12.5% (11.0%) of net sales. • Adjusted operating result increased to EUR 19.
Slide 5: Q3 2023 Operational highlights
Q3 2023 Operational highlights • Continuous improvements in operational efficiency across all segments increased Group’s adjusted EBITDA substantially, despite the lower net sales which was affected by the low consumer spending. • Low consumer and customer demand decreased the volumes in freight and
Slide 6: A challenging market and weakened market outlook led to impairments
A challenging market and weakened market outlook led to impairments • Macroeconomic environment has been challenging, especially in Sweden. • Decreased outlook for next years with the increased WACC (weighted average cost of capital) rate resulted the goodwill and purchase price allocations impairme
Slide 7: Combined external sales of eCommerce and Delivery Services, and Fulfillment and Logistics Services
Q3 2023: The combined external sales of eCommerce and Delivery Services, and Fulfillment and Logistics Services represented 62.9% (64.6%) of the Group’s net sales 20% (22%) Postal Services 37% (35%) eCommerce and Delivery Services 43% (43%) 7 25.10.2023
Slide 8: Parcel volumes increased, postal volumes continued to decrease
Q3 2023: Parcel volumes increased, postal volumes continued to decrease +3% Parcel volumes in Finland and in the Baltics 7-9/2023 -8% Freight volumes* 7-9/2023 -18% Addressed letter volumes 7-9/2023 * Measured in waybills 8 25.10.2023
Slide 9: Addressed letter volumes continued to decrease
Q3 2023: Addressed letter volumes continued to decrease • Altogether 73 million addressed letters were delivered in Q3. Decline from previous year 16 million items. • The declining trend in addressed letter volumes continue (declined 18%) in Q3. Comparison period was affected positively by acquisiti
Slide 10: Financials
2 & rT) Cc 6 £ rm
Slide 11: Posti Group's net sales decreased
Q3 2023: Posti Group’s net sales decreased Net sales decreased by 5.9% to EUR 372.3 (395.6) million. 11 25.10.2023
Slide 12: Posti Group's adjusted EBITDA increased
Q3 2023: Posti Group’s adjusted EBITDA increased Adjusted EBITDA increased to EUR 52.9 (44.3) million, or 14.2% (11.2%) of net sales. 12 25.10.2023
Slide 13: Posti Group's key figures
Q3 2023: Posti Group’s key figures 13 25.10.2023
Slide 14: Outlook and long-term financial targets
Outlook and long-term financial targets
Slide 15: Updated outlook for 2023
Updated outlook for 2023 The Group’s adjusted EBITDA is expected to be on the previous year’s level (previously communicated: adjusted EBITDA is expected to decrease) New outlook states: In 2023, Posti is expecting its net sales to decrease from the previous year. The Group’s adjusted EBITDA in 2023
Slide 16: Long-term financial targets
Long-term financial targets * Continuing operations 16 25.10.2023
Slide 17: Segments
W iJ c ® S op] co) WY)
Slide 18: eCommerce and Delivery Services key figures
Q3 2023: eCommerce and Delivery Services key figures • The net sales decreased by 6.5% to EUR 159.9 million • Consumers’ low consumption of goods reflected in the volumes negatively, especially in Finland, which led to decline in net sales. • Adjusted EBITDA increased to EUR 21.7 million • Improveme
Slide 19: Fulfillment and Logistics Services key figures
Q3 2023: Fulfillment and Logistics Services key figures • The net sales decreased by 12.1% and were EUR 78.9 million • The difficult market environment, especially in Sweden had a negative impact on segments volumes, which decreased net sales. • Sale of KV Turva Oy in December 2022 and sale of Trans
Slide 20: Postal Services key figures
Q3 2023: Postal Services key figures • The net sales of Postal Services decreased by 1.3% to EUR 139.3 million • Decreased volumes impacted net sales negatively whereas various price increases, reflecting the increased costs, had a positive impact on net sales. • Adjusted EBITDA increased to EUR 21.
Slide 21: Slide 21