Slide 1: Third quarter 2023 results Analyst call
Third quarter 2023 results Analyst call November 10th, 2023
Slide 2: Disclaimer and Financial Calendar
Investor presentation 3Q23 Interim financial report 3Q23 Financial Calendar Disclaimer 23.11.2023 This presentation is based on information published by bpost group in its Third Quarter 2023 Interim Financial Report, made available on November 9th, 2023 at 5.45pm CET on bpostgroup.com/investors. Thi
Slide 3: Highlights of 3Q23
Highlights of 3Q23 3Q23 Group underlying performance exceeding plan in seasonally softer quarter marked by continued adverse conditions. Resilient Belgium backed by strong parcel volumes, along with improved profits in Eurasia, mitigates N. Am. revenue pressure. Group operating Belgium E-Logistics E
Slide 4: Key financials 3Q23
Key financials 3Q23 3Q23 € million Reported Adjusted1 3Q22 3Q23 3Q22 3Q23 D% 1 € 75.0m provision for the Total operating income 1,021.9 978.5 1,021.9 978.5 -4.2% repayment to the Belgian State towards overcompensation over Operating expenses 923.6 1 948.0 923.6 1 873.0 -5.5% the past years2 EBITDA 9
Slide 5: Parcel volume growth and beneficial Price Mix across mail and parcels
Parcel volume growth and beneficial Price Mix across 3Q23 – Belgium mail and parcels Belgium revenues, € million Domestic Mail Parcels Belgium Proximity and Revenues up € +4.1m (+1.4%): Parcels Belgium revenues convenience retail 3Q22 494.9 up € +12.4m (+12.1%): • € -23.2m volume (-8.2% network unde
Slide 6: Strong revenues offset inflationary pressure on costs
Strong revenues offset inflationary pressure on costs 3Q23 – Belgium € million Belgium 3Q22 3Q23 D% Key takeaways 3Q23 Transactional 169.7 172.1 1.4% Advertising 42.9 40.7 -5.3% • Higher intersegment revenues from inbound cross-border volumes Press 80.3 84.3 5.0% handled in the domestic network, and
Slide 7: Mixed revenue development across businesses results in stable topline operationally
Mixed revenue development across businesses results in 3Q23 – E-Log. Eurasia stable topline operationally E-Logistics Eurasia revenues, € million E-commerce logistics Cross-border Revenues up € +1.7m (+2.5%): Revenues down € -6.0m (-7.4%) mainly from: 3Q22 149.4 • Radial Europe and Active Ants reven
Slide 8: Improved profitability in Eurasia
Improved profitability in Eurasia 3Q23 – E-Log. Eurasia € million E-Logistics Eurasia 3Q22 3Q23 D% Key takeaways 3Q23 E-commerce logistics 67.3 69.0 2.5% Cross-border 82.0 76.0 -7.4% • Total operating income down € -3.7m (-2.4%) Intersegment and other 5.9 6.6 11.3% Total operating income 155.3 151.6
Slide 9: Revenue pressure in a North American market that remains difficult
Revenue pressure in a North American market that remains 3Q23 – E-Log. N. Am. difficult E-Logistics N. America revenues, € million E-commerce logistics U.S. domestic market trend Revenues down € -66.7m (-17.8% or -11.0% at constant exchange rate) Domestic Package volume (U.S.) – y/y evolution 3Q22 3
Slide 10: Productivity gains at Radial partly mitigate topline pressures
Productivity gains at Radial partly mitigate topline pressures 3Q23 – E-Log. N. Am. € million E-Logistics North America 3Q22 3Q23 D% Key takeaways 3Q23 E-commerce logistics 375.0 308.3 -17.8% Intersegment and other 1.5 2.0 33.9% • Total operating income down € -66.2m (-17.6%, or -10.8% excl. FX) Tot
Slide 11: Continued FTE reduction mitigates the cost pressures
Continued FTE reduction mitigates the cost pressures 3Q23 – Corporate € million Corporate 3Q22 3Q23 D% Key takeaways 3Q23 External operating income 2.7 1.9 -30.0% Intersegment and other 98.2 101.0 2.9% • External revenues down € -0.8m mainly from building sales Total operating income 100.8 102.8 2.0
Slide 12: Stable Cash Flow from Operating activities negatively impacted by working capital development
Stable Cash Flow from Operating activities negatively impacted by 3Q23 working capital development € million - Adjusted 3Q22 3Q23 D Cash flow from operating activities before Δ in WC and provisions 91.7 25.1 -66.6 1 Change in working capital and provisions -40.6 -20.8 19.9 2 Cash flow from operating
Slide 13: 2023 group EBIT outlook
2023 group EBIT outlook Outlook FY23 Despite North American market headwinds and compliance reviews impacts, bpost expects the group adjusted EBIT to be above € 240m Belgium E-Logistics Eurasia E-Logistics N. Am. Group incl. € -10.0m of repricing services to the State 4-5% growth1 in total operating
Slide 14: Additional info
Additional info
Slide 15: Adjusted vs. reported Cash Flow Statement
Adjusted vs. reported Cash Flow Statement 3Q23 € million Reported Adjusted 3Q22 3Q23 D 3Q22 3Q23 D Cash flow from operating activities before Δ in WC and provisions 91.7 25.1 -66.6 91.7 25.1 -66.6 Change in working capital and provisions -76.6 -12.2 64.4 -40.6 -20.8 19.9 1 Cash flow from operating a
Slide 16: Balance Sheet
Balance Sheet 3Q23 € million € million Assets Dec 31, 2022 Sept 30, 2023 Equity and Liabilities Dec 31, 2022 Sept 30, 2023 Property, Plant and Equipment 1,398.9 1,392.0 Total equity 1,065.4 1,022.8 Intangible assets 855.8 835.5 Interest-bearing loans & borrowings 1,488.6 1,481.5 Investments in assoc
Slide 17: Financing Structure & Liquidity
Financing Structure & Liquidity 3Q23 € million € million Available Liquidity Dec 31, 2022 Sept 30, 2023 External Funding Dec 31, 2022 Sept 30, 2023 Cash & c ash eq u i v al en ts 1,051.0 973.7 L o n g-term 650.0 650.0 1 Cash in network 143.9 136.0 Long-term bond (1.25% - 07/2026) 650.0 650.0 Transit
Slide 18: 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: bpostgroup, Boulevard Anspach 1, 1000 Brussels, Belgium 18