Slide 1: Staying resilient in volatile times
Staying resilient in volatile times Q3 2024 results The Hague – 4 November 2024 1
Slide 2: Additional information and forward-looking statements
Additional information factors that are outside of our control and Use of non-GAAP information impossible to predict and may cause actual Additional information is available at In presenting and discussing the PostNL Group results to differ materially from any future results www.postnl.nl. Elements
Slide 3: Key takeaways for Q3 2024
Key takeaways for Q3 2024 FY normalised EBIT expected to be ~€80m* Highlights Mail in the Netherlands • Parcel volumes up 7.4% supported by accelerating domestic • Result of €(19)m in first nine months of 2024, clearly volume growth, with more or less stable market share showing business model is un
Slide 4: Current business model of postal services unsustainable
Current business model of postal services unsustainable Additional measures due to delayed decision parliament on postal market Fast deteriotation in result Urgent changes needed: Future-proof postal service Mail in the Netherlands standard D+2 mail service level, over time D+3 • Ongoing decline in
Slide 5: Migration to D+2 service level for all non-USO mail
Migration to D+2 service level for all non-USO mail Creates lower cost per item in peak routes and more efficient off-peak routes Current delivery schedule (5 days a week) • Two cost-efficient peak days a week for every address Non-24-hr business mail (Tuesday & Thursday and Wednesday & Friday) 24-h
Slide 6: Q3 2024 performance
Q3 2024 performance Normalised EBIT of €(18)m Key financial metrics (in € million) Q3 2023 Q3 2024 change YTD 2023 YTD 2024 change Revenue 722 756 5% 2,276 2,316 2% Normalised EBIT (11) (18) -69% 14 (9) Free cash flow (26) (68) (91) (94) Normalised comprehensive income (4) (19) 10 (13) Main drivers
Slide 7: Our strategy
Our strategy Delivering distinctive customer and consumer experience to be the leading logistics and postal service provider in, to and from the Benelux area Strategic foundation Strategic objectives Be your favourite deliverer Parcels: Manage for Digitalisation, customers, consumers sustainable gro
Slide 8: Parcels in Q3 2024
Parcels in Q3 2024 Encouraging volume growth with improving operating leverage Revenue Normalised Volume Revenue mix EBIT in € million Q3 2023 Q3 2024 Q3 2024 €569m €3m 88m +7.4% Parcels NL and BE 348 370 Q3 2023 €535m €1m 82m* Spring 116 133 Logistics solutions and other services 67 74 Other / inte
Slide 9: Parcels Q3 2024 normalised EBIT bridge
Parcels Q3 2024 normalised EBIT bridge (in € million) Normalised EBIT Q3 2023 1 Revenue - volume 26 7.4% volume growth Unfavourable product and customer mix (e.g. within domestic and international Revenue - mix (18) volumes) Volume-dependent costs (15) Wage increases PostNL and sector CLA, indexatio
Slide 10: Tariff increases more than offset by mix effects
Tariff increases more than offset by mix effects Various mix effects impact average price per parcel Increasing customer concentration in domestic volumes Development average tariff per parcel in Q3 (in €) • Share of SME segment declines, with fewer single items Q3 2023 4.26 • Consolidation towards
Slide 11: Market share PostNL remains relatively stable
Market share PostNL remains relatively stable In persistent volatile economic conditions Continuing aim for stable market share Market share • Navigating in market environment with intense competition PostNL Other • Ongoing commitment to more sustainable logistics Definition of parcel market • B2C i
Slide 12: Mail in the Netherlands Q3 2024
Mail in the Netherlands Q3 2024 Shift to non-24-hr mail continues while costs are rising Revenue Normalised Volume Indicative volume split EBIT Q3 2024 €295m €(19)m 334m -6.3% 24-hr non-24-hr Q3 2023 €299m €(14)m 356m Volume Revenue Costs • Volume decline of 6.3% • Stamp price development • Continue
Slide 13: Mail in the Netherlands Q3 2024 normalised EBIT bridge
Mail in the Netherlands Q3 2024 normalised EBIT bridge (in € million) Normalised EBIT Q3 2023 (14) Revenue - volume (12) 6.3% volume decline Revenue - mix (4) Related to further shift to non-24-hr mail Volume-dependent costs 3 Organic costs (12) Wage increases and other inflationary pressures Revenu
Slide 14: Cash flow
Cash flow Phasing effects due to income tax payments Q3 2023 Q3 2024 (in € million) Normalised EBIT (11) (18) Depreciation & amortisation 45 47 Capex (26) (24) Lower capex, FY assumption < €110m Lease payments and related cash flow (19) (26) Due to additional NLIs Includes some phasing effects throu
Slide 15: Financial position
Financial position Balance sheet (in € million) 28 Sept 2024 28 Sep 2024 Intangible fixed assets 413 Consolidated equity 150 Property, plant and equipment 473 Non-controlling interests 3 Right-of-use assets 284 Total equity 152 Other non-current assets 57 Pension liabilities 2 Other current assets 4
Slide 16: Peak season volumes crucial for FY result
Peak season volumes crucial for FY result Organic cost increases partly mitigated by price increases Volume, in million items, indicative only Parcels 96 • 7% - 10% volume growth assumed for FY2024 82 86 87 92 82 88 • Accelerating volume growth expected in Q4 Domestic 2023 International 2023 • encou
Slide 17: Step-up in normalised EBIT in Q4
Step-up in normalised EBIT in Q4 Normalised EBIT FY 2024 expected to be ~€80m (in € million) 2023 2024 Parcels YTD 23 19 Parcels • Accelerating volume growth to double-digits Mail in the Netherlands YTD (4) (19) • Peak pricing • Some relief in pressure from mix effects PostNL Other YTD (5) (9) • Eff
Slide 18: Outlook 2024
Outlook 2024 Persistent volatile economic environment Majority normalised EBIT in Q4 2024 outlook Indicative only, in € million 2023 2024 outlook (in € million) (26 February 2024) 77 Normalised EBIT 92 80 – 110 ~80 Normalised comprehensive 2023 52 40 – 70 ~40 income 2024 18 18 Free cash flow 52 0 –
Slide 19: Q&A
Q&A PostNL Q3 2023 results
Slide 20: Appendix
Appendix 1. Cumulative organic cost increases and price adjustments 2022-24 2. Results per segment Q3 2024 and YTD 2024 3. Revenue mix Parcels 4. Full reconciliation of income statement and EBITDA per segment and YTD 2024 5. Free cash flow per segment Q3 2024 6. Free cash flow YTD 2024 7. Result dev
Slide 21: Continued significant inflationary pressure on costs
Continued significant inflationary pressure on costs Not fully mitigated by price adjustments (in € million, indicative) Organic cost increases 138 FY 2022 Organic cost increases 178 FY 2023 Organic cost increases FY 2024 <155 YTD 2024: €97m Total organic cost increases < 470 Total price adjusments
Slide 22: Results per segment Q3 2024 & YTD 2024
Results per segment Q3 2024 & YTD 2024 (in € million) Revenue Normalised EBIT* Margin Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Parcels 535 569 1 3 0.2% 0.4% Mail in the Netherlands 299 295 (14) (19) -4.7% -6.6% PostNL Other 62 57 2 (1) Intercompany (174) (166) PostNL 722 756 (11) (18) -1.5% -
Slide 23: Revenue mix Parcels
Revenue mix Parcels As of 2024 (in € million) Q1 2023 Q1 2024 Q2 2023 Q2 2024 Q3 2023 Q3 2024 Q4 2023 Q4 2024 FY 2023 FY 2024 Parcels 360 369 372 387 348 370 409 1,489 Spring 116 125 119 137 116 133 125 475 Logistics solutions and other 72 73 72 76 67 74 72 283 Other / intercompany 14 (12) (7) (19)
Slide 24: Full reconciliation of income statement and EBITDA Q3 2024
Full reconciliation of income statement and EBITDA Q3 2024 Mail in the Income statement PostNL Parcels PostNL Other Eliminations Netherlands (in € million) Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Total operating revenue 722 756 535 569 299 295 62 57 (174) (166
Slide 25: Full reconciliation of income statement and EBITDA YTD 2024
Full reconciliation of income statement and EBITDA YTD 2024 Mail in the Income statement PostNL Parcels PostNL Other Eliminations Netherlands (in € million) YTD YTD YTD YTD YTD YTD YTD YTD YTD YTD 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 Total operating revenue 2,276 2,316 1,652 1,706 971 9
Slide 26: Free cash flow per segment Q3 2024
Free cash flow per segment Q3 2024 (in € million) PostNL Parcels Mail in the Netherlands PostNL Other & Eliminations Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 EBITDA 33 27 20 25 (7) (13) 20 15 Change in pensions 0 0 0 0 - - (0) (0) Change in provisions (1) 4 0 1 (2) 3 0 (0) Cha
Slide 27: Cash flow YTD
Cash flow YTD YTD 2023 YTD 2024 Normalised EBIT 14 (9) Depreciation & amortisation 130 140 Capex (90) (73) Lease payments and related cash flow (54) (64) Change in working capital (47) (65) Phasing over quarters within the year Change in provisions 5 18 Disposals, reversal normalisations and other*
Slide 28: Parcels YTD 2024 normalised EBIT bridge
Parcels YTD 2024 normalised EBIT bridge (in € million) Normalised EBIT YTD 2023 23 Revenue - volume 64 6.0% volume growth Revenue - mix (53) Unfavourable product and customer mix effects, also within domestic volumes Volume-dependent costs (39) Wage increases PostNL CLA, sector CLA, indexation for d
Slide 29: Mail in the Netherlands YTD 2024 normalised EBIT bridge
Mail in the Netherlands YTD 2024 normalised EBIT bridge (in € million) Normalised EBIT YTD 2023 (4) Revenue - volume (44) 6.9% volume decline Revenue - mix (15) Related to further shift to non-24-hr mail and other mix effects Volume-dependent costs 11 Organic costs (31) Wage increases and other infl
Slide 30: Profit and normalised comprehensive income
Profit and normalised comprehensive income* (in € million) Q1 2023 Q1 2024 Q2 2023 Q2 2024 Q3 2023 Q3 2024 YTD 2023 YTD 2024 Operating income / EBIT 7 (21) 17 15 (12) (21) 12 (27) Net financial expenses (1) (0) (2) (2) 0 (2) (2) (4) Results from investments in JVs/associates (0) 0 (0) (0) (2) (4) (2