Slide 1: Second quarter 2023 results Analyst call
Second quarter 2023 results Analyst call Philippe Dartienne, CEO a.i. Koen Aelterman, CFO a.i. August 4th, 2023
Slide 2: Investor presentation 2Q23 disclaimer and financial calendar
Investor presentation 2Q23 Interim financial report 2Q23 Financial Calendar Disclaimer 09.11.2023 (17:45 CET) This presentation is based on information published by bpost group in its Second Quarter 2023 Interim Financial Report, made available on August 3rd, 2023 at 5.45pm CET on bpostgroup.com/inv
Slide 3: Highlights of 2Q23
Highlights of 2Q23 2Q23 Performance again exceeding plan. Strong parcels volumes in Belgium and Cross-Border, along with resilient mail revenues, allow delivery of a solid quarter despite challenging market conditions and impacts of the compliance review. S&P reaffirms Group operating Belgium E-Logi
Slide 4: Key financials 2Q23
Key financials 2Q23 2Q23 € million Reported Adjusted1 2Q22 2Q23 2Q22 2Q23 D% 1 Amortization and impairments of Total operating income 1,035.5 1,027.6 1,035.5 1,027.6 -0.8% intangibles recognized during PPA are adjusted, leading to Operating expenses 884.8 884.7 884.8 884.7 0.0% increase in EBIT (€ +
Slide 5: Topline driven by strong parcel volumes and resilient mail revenues
Topline driven by strong parcel volumes and resilient mail 2Q23 – Belgium revenues Belgium revenues, € million Domestic Mail Parcels Belgium Proximity and Revenues up € +6.8m (+2.2%): Parcels Belgium revenues up € convenience retail 2Q22 519.3 +13.8m (+13.2%): • € -25.4m volume (-8.3% network underl
Slide 6: Strong revenues offset inflationary pressure on costs
Strong revenues offset inflationary pressure on costs 2Q23 – Belgium € million Belgium 2Q22 2Q23 D% Key takeaways 2Q23 Transactional 182.6 190.4 4.3% Advertising 47.4 44.4 -6.4% • Higher intersegment revenues from inbound cross-border volumes Press 85.3 87.4 2.4% handled in the domestic network, off
Slide 7: Strong cross-border revenue growth fueled by recent customer wins and IMX integration
Strong cross-border revenue growth fueled by recent customer 2Q23 – E-Log. Eurasia wins and IMX integration, and continued momentum in e-com fulfilment E-Logistics Eurasia revenues, € million E-commerce logistics Cross-border Revenues up € +5.4m (+8.2%): Revenues up € +14.7m (+20.7%) mainly from: 2Q
Slide 8: Continued margin recovery supported by higher revenues
Continued margin recovery supported by higher revenues 2Q23 – E-Log. Eurasia € million E-Logistics Eurasia 2Q22 2Q23 D% Key takeaways 2Q23 E-commerce logistics 65.3 70.7 8.2% Cross-border 70.8 85.5 20.7% • Total operating income up € +21.7m (+15.3%) Intersegment and other 5.5 7.1 29.5% Total operati
Slide 9: Revenue development impacted by ongoing economic softness, market over-capacity and Amazon insourcing
Revenue development impacted by ongoing economic 2Q23 – E-Log. N. Am. softness, market over-capacity and Amazon insourcing E-Logistics N. America revenues, € million E-commerce logistics U.S. domestic market trend Revenues down € -49.3m (-13.1% or -10.9% at constant exchange rate) Domestic Package v
Slide 10: Productivity gains defend margins against challenging market conditions
Productivity gains defend margins against challenging market 2Q23 – E-Log. N. Am. conditions and revenue pressure at Landmark € million E-Logistics North America 2Q22 2Q23 D% Key takeaways 2Q23 E-commerce logistics 377.3 328.1 -13.1% Intersegment and other 1.2 2.0 59.0% • Total operating income down
Slide 11: Continued FTE reduction mitigates the cost pressures
Continued FTE reduction mitigates the cost pressures 2Q23 – Corporate € million Corporate 2Q22 2Q23 D% Key takeaways 2Q23 External operating income 2.7 1.6 -41.7% Intersegment and other 96.4 110.3 14.4% • External revenues down € -1.1m mainly from building sales Total operating income 99.1 111.9 12.
Slide 12: Improved Free cash flow reflects lower tax prepayment, lower capex
Improved Free cash flow reflects lower tax prepayment, lower capex 2Q23 and return to normal seasonality of working capital € million - Adjusted 2Q22 2Q23 D Cash flow from operating activities before Δ in WC and provisions 106.1 121.5 15.4 1 Change in working capital and provisions -201.9 -148.8 53.
Slide 13: Update on Press tender and Compliance reviews
Update on Press tender and Compliance reviews Summarized version –full detail in Contingent Liability disclosure in press release The Belgian Government launched earlier this year a new tender for 2024-2028, with a reduced budget of € c.125m and adapted specifications • Bids application closed on 8
Slide 14: Management priorities 2023
Management priorities 2023 Management In line with group ambition to be a global e-commerce & logistics service provider, with a sustained Belgian anchor, and recognized as a reference in sustainability Achievements of 1H23 Focus and priorities for 2H23 Strong financial results despite ongoing turmo
Slide 15: Outlook 2023 – Update of underlying parameters
Outlook 2023 – Update of underlying parameters Outlook FY23 Group EBIT guidance pending ongoing analysis of financial impacts of compliance review Impacts of the compliance reviews, Belgium E-Logistics Eurasia E-Logistics N. Am. including the negative excl. impacts of compliance review EBIT impact o
Slide 16: Additional info
Additional info
Slide 17: Adjusted vs. reported Cash Flow Statement
Adjusted vs. reported Cash Flow Statement 2Q23 € million Reported Adjusted 2Q22 2Q23 D 2Q22 2Q23 D Cash flow from operating activities before Δ in WC and provisions 106.1 121.5 15.4 106.1 121.5 15.4 Change in working capital and provisions -205.3 -149.0 56.2 -201.9 -148.8 53.0 1 Cash flow from opera
Slide 18: Balance Sheet
Balance Sheet 2Q23 € million € million Assets Dec 31, 2022 Jun 30, 2023 Equity and Liabilities Dec 31, 2022 Jun 30, 2023 Property, Plant and Equipment 1,398.9 1,391.2 Total equity 1,065.4 1,062.1 Intangible assets 855.8 827.0 Interest-bearing loans & borrowings 1,488.2 1,473.5 Investments in associa
Slide 19: Financing Structure & Liquidity
Financing Structure & Liquidity 2Q23 € million € million Available Liquidity Dec 31, 2022 Jun 30, 2023 External Funding Dec 31, 2022 Jun 30, 2023 Ca sh & c a sh eq u iv a l en ts 1,051.0 1,052.9 L o n g -term 650.0 650.0 1 Cash in network 143.9 147.5 Long-term bond (1.25% - 07/2026) 650.0 650.0 Tran
Slide 20: 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 20