Slide 1: First quarter 2020 results Analyst call
First quarter 2020 results Analyst call Jean-Paul Van Avermaet, CEO Leen Geirnaerdt, CFO 5 May 2020
Slide 2: Investor presentation 1Q20 disclaimer and financial calendar
Investor presentation 1Q20 Interim financial report 1Q20 Financial Calendar Disclaimer 13.05.2020 This presentation is based on information published by bpost Group in its First Quarter 2020 Interim Financial Report, made available on May, 4th 2020 at 5.45pm CET on corporate.bpost.be/investors. This
Slide 3: Highlights of 1Q20
Highlights of 1Q20 1Q20 1Q20 above expectations excluding COVID-19 1Q20 COVID- Group operating Mail & Retail Parcels & Logistics Parcels & Logistics 19 impact1 on income Eurasia N. Am. Group EBIT € 934.6m € 65.2m, € 16.9m € -7.4m 13.0% EBIT margin 7.9% EBIT margin -2.8% EBIT margin estimated at € -1
Slide 4: COVID-19 drove 1Q20 EBIT decline through Advertising Mail drop and additional costs
COVID-19 drove 1Q20 EBIT decline through significant 1Q20 Advertising Mail drop and Group-wide additional costs € million 95.8 5.5 -20.2 -27.4 75.6 4.6 8.0 -1.2 0.4 90.4 71.0 Adjusted1 Reported EBIT Mail & PaLo PaLo Corporate EBIT 1Q19 Retail Eurasia N. America 1Q20 1 Adjusted previously called Norm
Slide 5: Key financials 1Q20
Key financials 1Q20 1Q20 € million Reported Adjusted 1 Amortization of intangibles recognized 1Q19 1Q20 1Q19 1Q20 %↑ during PPA is adjusted, leading to increase in EBIT (€ +4.6m) and income Total operating income 906.8 934.6 906.8 934.6 3.1% tax expense (€ +0.2m) Operating expenses 755.7 797.4 755.7
Slide 6: Results by segment 1Q20
Results by segment 1Q20 1Q20 € million M&R PaLo Eurasia PaLo N. Am. Corp Eliminations Group External operating income 457.8 210.5 259.9 6.4 0.0 934.6 Intersegment operating income 42.2 3.0 1.4 90.4 -137.1 0.0 Total operating income 500.0 213.5 261.3 96.8 (137.1) 934.6 Operating expenses 413.8 192.2
Slide 7: Top-line decrease driven by COVID-19 impacts on Advertising Mail and retail
Top-line decrease driven by COVID-19 impacts on Advertising 1Q20 – M&R Mail and on retail and by deconsolidation of Alvadis M&R external operating income, € million Domestic Mail Transactional Proximity and convenience Operating income decline at € -17.6m i.e. -8.8% underlying volume decline of whic
Slide 8: M&R EBIT impacted by COVID-19 mail evolution and additional opex
M&R EBIT impacted by COVID-19 mail evolution and 1Q20 – M&R additional opex to guarantee continuity of service Key takeaways 1Q20 € million Mail & Retail 1Q19 1Q20 %↑ External operating income 486.5 457.8 -5.9% Transactional 195.5 193.3 -1.1% • Total operating income decline of € -27.5m primarily dr
Slide 9: Parcels BeNe & E-commerce logistics growth partly offset by Cross-border
Parcels BeNe & E-commerce logistics growth 1Q20 – PaLo Eurasia partly offset by COVID-19 impact on Cross-border PaLo Eurasia external operating income, € million Parcels BeNe E-commerce logistics Cross-border Parcels BeNe volume growth of Revenue growth mainly driven by Cross-border revenues impacte
Slide 10: Lower EBIT through COVID-19, VAT recovery and terminal dues
Lower EBIT through COVID-19, 1Q19 additional VAT 1Q20 – PaLo Eurasia recovery and YoY unfavourable evolution of terminal dues Key takeaways 1Q20 € million Parcels & Logistics Europe and Asia 1Q19 1Q20 %↑ External operating income 191.7 210.5 9.8% Parcels BeNe 87.4 104.7 19.8% • Total operating incom
Slide 11: Parcels & Logistics North America driven by 2019 new business
Parcels & Logistics North America driven by 2019 1Q20 – PaLo N. Am. new business and growth at existing clients PaLo North America external operating income, € million E-commerce logistics International mail YoY increase of +16.4%, or +13.2% Declining revenues at The Mail 1Q19 227.2 at constant exch
Slide 12: Positive EBIT evolution of Radial offset by International mail margin pressure
Positive EBIT evolution of Radial largely offset by 1Q20 – PaLo N. Am. continuing margin pressure in International mail Key takeaways 1Q20 € million Parcels & Logistics North America 1Q19 1Q20 %↑ External operating income 227.2 259.9 14.4% E-commerce logistics 204.5 238.0 16.4% • Total operating inc
Slide 13: Corporate EBIT increase driven by higher building sales and lower opex
Corporate EBIT increase driven by 1Q20 – Corporate higher building sales and lower opex Key takeaways 1Q20 € million Corporate 1Q19 1Q20 %↑ External operating income 1.5 6.4 Intersegment operating income 84.7 90.4 6.7% • External revenues up € +4.9m driven by higher building sales Total operating in
Slide 14: Positive evolution of FCF driven by higher cash flow from investing activities
Positive evolution of FCF1 mainly driven by higher cash flow 1Q20 from investing activities through higher building sales Reported - € million 1Q19 1Q20 Delta + Cash flow from operating activities 202.2 203.6 1.4 + Cash flow from investing activities -16.1 -9.4 6.7 = Free cash flow 186.1 194.2 8.1 +
Slide 15: Balance Sheet
Balance Sheet 1Q20 € million € million Assets Dec 31, 2019 Mar 31, 2020 Equity and Liabilities Dec 31, 2019 Mar 31, 2020 PPE 1,133.6 1,120.2 Total equity 682.6 731.9 Intangible assets 898.3 904.9 Interest-bearing loans & borrowings (incl. bank overdrafts) 1,449.9 1,464.2 Investments in associates an
Slide 16: Financing Structure & Liquidity
Financing Structure & Liquidity 1Q20 € million € million Available Liquidity Dec 31, 2019 Mar 31, 2020 External Funding Dec 31, 2019 Mar 31, 2020 Cash & cash equivalents 670.2 844.4 Long-ter m Cash in network 163.6 156.0 Long-term bond1 (1.25% - 07/2026) 650.0 650.0 Transit accounts 105.8 45.8 Bank
Slide 17: Outlook for 2020 overruled by COVID-19
Outlook for 2020 overruled by COVID-19 Outlook FY20 Updated full-year guidance will be issued as soon as the full quantitative impact of COVID-19 can be accurately and reliably estimated. bpost Group is not in position to do so to date. Mail & Retail Parcels & Logistics Parcels & Logistics Group Div
Slide 18: Key contacts
Key contacts Saskia Dheedene Stéphanie Voisin Head of Investor Relations Manager Investor Relations Email: saskia.dheedene@bpost.be Email: stephanie.voisin@bpost.be Direct: +32 (0) 2 276 76 43 Direct: +32 (0) 2 276 21 97 Mobile: +32 (0) 477 92 23 43 Mobile: +32 (0) 478 48 58 71 Address: bpost Group,