Slide 1: Staying resilient in volatile times
Staying resilient in volatile times Q2 & HY 2024 results The Hague – 5 August 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 messages Q2 & HY 2024
Key messages Q2 & HY 2024
Slide 4: Key takeaways for Q2 2024
Key takeaways for Q2 2024 Outlook for FY 2024 reconfirmed Highlights Mail in the Netherlands • Parcel volumes up 6.0% • Results underpin urgent need for transformation • modest growth in domestic volumes • Aim to deliver standard mail within two days, moving towards • continued strong growth from in
Slide 5: Q2 & HY 2024 performance
Q2 & HY 2024 performance Normalised EBIT €18m in Q2 in difficult circumstances Key financial metrics (in € million) Q2 2023 Q2 2024 change HY 2023 HY 2024 change Revenue 771 795 3% 1,544 1,560 0% Normalised EBIT 18 18 25 9 -65% Free cash flow (34) (19) (65) (26) Normalised comprehensive income 10 14
Slide 6: Strategic drivers and business development
Strategic drivers and business development
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 – manage for sustainable growth
Parcels – manage for sustainable growth Balancing volume and value Network rationalisation and Focus on customers and cost control consumers Revenue and capacity management to capture Cost reduction in first and middle mile (collection Focus on last mile NPS: average #1 position in value in supply c
Slide 9: Parcels in Q2 2024
Parcels in Q2 2024 Volume growth, but less favourable mix Revenue Normalised Volumes Revenue mix EBIT in € million Q2 2023 Q2 2024 Q2 2024 €581m €15m 92m +6.0% Parcels NL and BE 372 387 Q2 2023 €556m €17m 87m Spring 119 137 Logistics solutions and other services 72 76 Other / intercompany (7) (19) P
Slide 10: Mail in the Netherlands – manage for value
Mail in the Netherlands – manage for value Urgent need for transformation Structural decline Necessary actions Future-proof postal service • Ongoing decline in mail volumes • Aim for standard mail service level of • Accessible, reliable and affordable and shift to non-24-hour mail delivery within tw
Slide 11: Political process towards change in regulation
Political process towards change in regulation Minister of Economic Affairs is leading the process 2024 2025 Round-table discussion took place in June Bridging measures potentially in place • Support Members of Parliament in understanding postal market dynamics Amendments in Postal Act • PostNL, com
Slide 12: Mail in the Netherlands Q2 2024
Mail in the Netherlands Q2 2024 Volume decline strongly impacted by election-related mail Revenue Normalised Volumes Indicative volume split bulk mail** EBIT 18% 17% Q2 2024 €324m €6m 404m -1.3% Q2 2023 €323m €2m 409m FY HY 24-hour 2023 2024 Non-24-hour Volume Revenue Costs • Overall volume decline
Slide 13: Outlook 2024 reconfirmed
Outlook 2024 reconfirmed Reflecting assumption of gradual improvement in economic conditions (in € million) 2023 2024 outlook Normalised EBIT 92 80 - 110 Normalised comprehensive income 52 40 - 70 Free cash flow 52 0 - 40 Parcels • Well-positioned for anticipated pick-up in volume growth • Consisten
Slide 14: Financial performance Q2 & HY 2024
Financial performance Q2 & HY 2024
Slide 15: Parcels Q2 2024 normalised EBIT bridge
Parcels Q2 2024 normalised EBIT bridge (in € million) Normalised EBIT Q2 2023 17 Revenue - volume 22 6.0% volume growth Unfavourable product and customer mix (e.g. within domestic and international Revenue - mix (19) volumes) Volume-dependent costs (13) Wage increases PostNL and sector CLA, indexati
Slide 16: Tariff increases more than offset by mix effects
Tariff increases more than offset by mix effects Increasing customer concentration, growth Asian volumes Various mix effects Development average tariff per parcel in Q2 (in €) Increasing customer concentration in domestic volumes • share of SME segment declines, with fewer single items Q2 2023 4.29
Slide 17: Mail in the Netherlands Q2 2024 normalised EBIT bridge
Mail in the Netherlands Q2 2024 normalised EBIT bridge (in € million) Normalised EBIT Q2 2023 2 Revenue - volume (3) 1.3% volume decline Revenue - mix (8) Related to further shift to non-24-hour mail and election mail Volume-dependent costs 2 Organic costs (11) Wage increases and other inflationary
Slide 18: Cash flow improved
Cash flow improved Better working capital, partly phasing Q2 2023 Q2 2024 (in € million) Normalised EBIT 18 18 Depreciation & amortisation 44 47 Capex (26) (24) Lower capex, FY assumption ~€110m Lease payments and related cash flow (15) (19) Includes some phasing effects throughout the Change in wor
Slide 19: Financial position provides solid base for dividend
Financial position provides solid base for dividend Interim dividend of €0.03 per share to be paid on 26 August Balance sheet (in € million) 29 Jun 2024 29 Jun 2024 Intangible fixed assets 411 Consolidated equity 182 Property, plant and equipment 479 Non-controlling interests 3 Right-of-use assets 2
Slide 20: Successful issuance sustainability-linked notes
Successful issuance sustainability-linked notes Adjusted net debt Sustainability-linked notes due June 2031 (in € million) 31 Dec 2023 29 Jun 2024 • Size €300m, 4.750% annual coupon Short- and long-term debt 740 1,036 • 100bps step-up on final coupon if targets are not met: Long-term interest-bearin
Slide 21: Outlook 2024
Outlook 2024
Slide 22: Outlook 2024 reconfirmed
Outlook 2024 reconfirmed Reflecting assumption of gradual improvement in economic conditions Parcels Volume, in million items, indicative only 96 • 7% - 10% overall volume growth assumed, dependent on economic developments 82 86 87 92 82 Domestic 2023 • domestic volumes trending to 2% - 4% growth, b
Slide 23: Outlook 2024 reconfirmed
Outlook 2024 reconfirmed Operating environment remains volatile Majority normalised EBIT in Q4 Indicative only, in € million (in € million) 2023 2024 outlook Normalised EBIT 92 80 – 110 77 Normalised comprehensive income 52 40 – 70 2023 2024 Free cash flow 52 0 – 40 18 18 7 • Capex is expected to be
Slide 24: Closing remarks
Closing remarks Remain leading e-commerce and postal services provider in, to, and from Benelux area Outlook 2024 reconfirmed Solid financial position • Successful issuance of €300m sustainbility-linked notes • Interim dividend of €0.03 per share, in line with dividend policy Parcels • Well-position
Slide 25: Q&A
Q&A
Slide 26: Appendix
Appendix 1. Cumulative organic cost increases and price adjustments 2022-24 2. Results per segment Q2 2024 & HY 2024 3. Revenue mix Parcels 4. Full reconciliation of income statement and EBITDA per segment 5. Free cash flow per segment HY 2024 6. Result development (bridge) per segment HY 2024 7. Fr
Slide 27: Continued significant inflationary pressure on costs
Continued significant inflationary pressure on costs Not fully mitigated by price adjustments (in € million) Organic cost increases 138 FY 2022 Organic cost increases 178 FY 2023 Organic cost increases FY 2024 ~155 YTD 2024: €62m Total organic cost increases ~470 Total price adjusments ~345 Cumulati
Slide 28: Results per segment Q2 2024 & HY 2024
Results per segment Q2 2024 & HY 2024 (in € million) Revenue Normalised EBIT Margin Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Parcels 556 581 17 15 3.1% 2.5% Mail in the Netherlands 323 324 2 6 0.7% 1.7% PostNL Other 59 58 (2) (2) Intercompany (168) (168) PostNL 771 795 18 18 2.3% 2.2% HY 2023
Slide 29: 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 360 369 372 387 348 409 1,489 Spring 116 125 119 137 116 125 475 Logistics solutions and other 72 73 72 76 67 72 283 Other / intercompany 14 (12) (7) (19) 3 3 13 Parc
Slide 30: Full reconciliation of income statement and EBITDA HY 2024
Full reconciliation of income statement and EBITDA HY 2024 Mail in the Income statement PostNL Parcels PostNL Other Eliminations Netherlands (in € million) HY 2023 HY 2024 HY 2023 HY 2024 HY 2023 HY 2024 HY 2023 HY 2024 HY 2023 HY 2024 Total operating revenue 1,554 1,560 1,118 1,137 673 648 119 121
Slide 31: Free cash flow per segment HY 2024
Free cash flow per segment HY 2024 (in € million) PostNL Parcels Mail in the Netherlands PostNL Other & Eliminations HY 2023 HY 2024 HY 2023 HY 2024 HY 2023 HY 2024 HY 2023 HY 2024 EBITDA 109 87 62 59 22 4 25 24 Change in pensions 0 0 0 0 - - (0) (0) Change in provisions 6 14 4 0 1 15 1 (1) Change i
Slide 32: Parcels HY 2024 normalised EBIT bridge
Parcels HY 2024 normalised EBIT bridge (in € million) Normalised EBIT HY 2023 22 Revenue - volume 39 5.3% volume growth (35) Revenue - mix Unfavourable product and customer mix effects, also within domestic volumes Volume-dependent costs (24) Wage increases PostNL CLA, sector CLA, indexation for del
Slide 33: Mail in the Netherlands HY 2024 normalised EBIT bridge
Mail in the Netherlands HY 2024 normalised EBIT bridge (in € million) Normalised EBIT HY 2023 10 Revenue - volume (31) 7.2% volume decline Revenue - mix (11) Related to further shift to non-24-hour mail and other mix effects Volume-dependent costs 8 Organic costs (19) Wage increases and other inflat
Slide 34: Free cash flow HY 2024
Free cash flow HY 2024 HY 2023 HY 2024 (in € million) Normalised EBIT 25 9 Depreciation & amortisation 85 92 Capex (64) (50) Lower capex, FY assumption ~€110m Lease payments and related cash flow (34) (38) Includes some phasing effects throughout the Change in working capital (38) (51) year Change i
Slide 35: Profit and normalised comprehensive income PostNL
Profit and normalised comprehensive income PostNL (in € million) HY 2023 HY 2024 Operating income / EBIT 24 (6) Net financial expenses (3) (2) Results from investments in JVs/associates (0) 0 Income taxes (6) (2) Profit/(loss) from discontinued operations (0) (0) Profit 15 (9) Other comprehensive in