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Bpost Sa — Q4 2024 Earnings Presentation

34 slides from Bpost Sa's earnings presentation, Feb 28, 2025

  1. Slide 1: Fourth quarter 2024 results Analyst call

    Fourth quarter 2024 results Analyst call Chris Peeters, CEO Philippe Dartienne, CFO February 28th, 2025

  2. Slide 2: Disclaimer and financial calendar

    Investor presentation 4Q24 Interim financial report 4Q24 Financial Calendar Disclaimer 26.03.2025 This presentation is based on information published by bpostgroup in its Fourth Quarter 2024 Interim Financial Report, made available on February 28th, 2025 at 07.00am CET on bpostgroup.com/investors. T

  3. Slide 3: Highlights of FY24

    Highlights of FY24 FY24 Domestic Parcels growth, Staci contribution and Radial productivity gains mitigate the impact of new Press contracts and topline pressures in North America Group operating income Last Mile 3PL Cross-border € 4,341.3m (€ +69.1m) € 133.7m (€ -44.8m) € 52.0m (€ +35.8m) € 79.8m (

  4. Slide 4: Delivering on 2024 strategic priorities

    Delivering on 2024 strategic priorities FY25 Group Launch of strategic vision to become a regional, digital expert in parcel size logistics, with mail products • Organizing around 3 dedicated Business Units and strengthening of group executive leadership functions • Transformation Roadmap: Launching

  5. Slide 5: Highlights of 4Q24

    Highlights of 4Q24 4Q24 bpostgroup delivers results in line with expectations. Staci contribution and successful peak execution help offset the impact of new Press contracts and revenue pressures in North America Group operating Last Mile 3PL Cross-border income € 24.8m (€ -11.5m) € 45.3m (€ +25.1m)

  6. Slide 6: Key financials 4Q24

    Key financials 4Q24 4Q24 € million Reported Adjusted1 1 Amortization and impairments of 4Q23 4Q24 4Q23 4Q24 D% intangibles recognized during PPA Total operating income 1,217.2 1,335.0 1,217.2 1,335.0 9.7% are adjusted, leading to increase in Operating expenses 1,063.6 1,154.0 1,063.6 1,155.9 8.7% EB

  7. Slide 7: Lower revenues from new Press contracts offset parcel volume growth

    Lower revenues from new Press contracts offset 4Q24 – Last Mile parcel volume growth Last Mile revenues, € million Domestic Mail Parcels Belgium Proximity and 4Q23 614.9 Revenues down € -27.9m (-8.5%): Parcels Belgium revenues convenience retail up € +10.7m (+7.4%): • € -21.3m lower Press revenues n

  8. Slide 8: Year-over-year EBIT decline driven by new Press contracts and payroll cost inflation

    Year-over-year EBIT decline driven by new Press contracts and 4Q24 – Last Mile payroll cost inflation € million BeNe Last Mile 4Q23 4Q24 D% Key takeaways 4Q24 Transactional 189.6 180.4 -4.8% Advertising 48.6 51.1 5.2% • Total operating income down € -23.0m (-3.6%) Press 89.2 67.9 -23.8% Parcels Belg

  9. Slide 9: Staci contribution and e-commerce logistics momentum in Europe offset pressure in North America

    Staci contribution and e-commerce logistics momentum in Europe 4Q24 – 3PL offset continuous pressure in North America 3PL revenues, € million 3PL Europe 3PL North America Revenues up € +219.8m: Radial N. Am. revenues down € -69.2m (-18.7% or -19.8% excl. FX) resulting 4Q23 415.6 • € 213.9m consolida

  10. Slide 10: EBIT growth fueled by Staci's contribution, productivity gains in North America

    EBIT growth fueled by Staci’s contribution, productivity gains in 4Q24 – 3PL North America offset topline pressure € million 3PL 4Q23 4Q24 D% Key takeaways 4Q24 3PL Europe 45.3 265.2 485.1% 3PL North America 370.3 301.1 -18.7% • Total operating income down € -62.1m (-14.9%), or up € +152.0m Interseg

  11. Slide 11: Staci Perspectives on topline and margin development

    Staci 3PL - STACI Perspectives on topline and margin development • Staci’s FY23-FY25e topline growth of 3-5% p.a., in line with plan. Staci Group1 topline and margin2 development | FR GAAP to IFRS EBITDA margin Impacted by FY24 sell-side process and transition year, as well as US acquisition integra

  12. Slide 12: Radial US Productivity gains safeguard EBITDA in challenging market conditions

    Radial US 3PL – RADIAL US Productivity gains safeguard EBITDA in challenging market conditions • Radial’s efficiency gains and enhanced peak execution have driven a Radial US revenues and adj. EBITDA margin1 evolution FY19 – FY24 9% EBITDA margin expansion over the past 5 years. • Despite a -28% rev

  13. Slide 13: Downtrading customers in North America offset expansion efforts in Europe

    Downtrading customers in North America offset 4Q24 – Cross-border expansion efforts in Europe and domestic inbound volumes Cross-border revenues, € million Cross-border Europe Cross-border N. Am. Revenues up € +2.4m (+2.4%) mainly Revenues down € -15.3m (-18.0%) 4Q23 185.8 from: mainly reflecting: •

  14. Slide 14: Topline pressure in North America leads to lower EBIT and margin dilution

    Topline pressure in North America leads to lower EBIT and 4Q24 – Cross-border margin dilution € million Global Cross-border 4Q23 4Q24 D% Key takeaways 4Q24 Cross-border Europe 100.6 103.0 2.4% Cross-border North America 85.3 69.9 -18.0% • Total operating income down € -13.5m (-7.2%) Intersegment and

  15. Slide 15: Salary indexations mitigated by lower corporate costs

    Salary indexations mitigated by lower corporate costs 4Q24 – Corporate € million Corporate 4Q23 4Q24 D% Key takeaways 4Q24 External operating income 1.0 1.4 36.6% Intersegment Operating Income 109.9 111.2 1.2% • External revenues up € +0.4m Total operating income 111.0 112.6 1.5% Operating expenses

  16. Slide 16: Net cash flow reflects higher EBITDA and working capital development

    Net cash flow reflects higher EBITDA and working capital 4Q24 development following the end of the Press concession € million - Adjusted 4Q23 4Q24 D Cash flow from operating activities before Δ in WC and provisions 122.3 159.9 37.5 1 Change in working capital and provisions 3.4 95.9 92.5 2 Cash flow

  17. Slide 17: Strategic initiatives in 2025

    Strategic initiatives in 2025 FY25 Group Accelerate transformation execution to become a regional digital expert in parcel size logistics, creating value for our clients and building customer centric solutions • Leverage capabilities for client solutions & capturing benefits across the bpostgroup •

  18. Slide 18: Financial outlook 2025 - Adjusted EBIT of € 150-180m

    Financial outlook 2025 - Adjusted EBIT of € 150-180m Outlook FY25 bpostgroup transformation in progress: Staci’s strategic contribution mitigates domestic challenges and impact of new Press contracts; Radial US’s strong cost control alleviates topline pressure from recent customer losses. Last Mile

  19. Slide 19: FY24

    FY24

  20. Slide 20: Key financials FY24

    Key financials FY24 FY24 € million Reported Adjusted1 1 € 75.0m provision in 2023 for the repayment to FY23 FY24 FY23 FY24 D% the Belgian State for potential overcompensation Total operating income 4,272.2 4,341.3 4,272.2 4,341.3 1.6% for the years prior 2023 Operating expenses 3,794.4 1 3,807.2 3,7

  21. Slide 21: Lower revenues from new Press contracts offset resilient mail revenues

    Lower revenues from new Press contracts offset resilient mail FY24 – Last Mile revenues and strong parcel volume growth Last Mile revenues, € million Domestic Mail Parcels Belgium Proximity and FY23 2,332.5 Revenues down € -60.7m (-4.8%): Parcels Belgium revenues convenience retail up € +32.2m (+6.5

  22. Slide 22: Year-over-year EBIT decline driven by new Press contracts and payroll cost inflation

    Year-over-year EBIT decline driven by new Press contracts and FY24 – Last Mile payroll cost inflation € million BeNe Last Mile FY23 FY24 D% Key takeaways FY24 Transactional 747.1 724.3 -3.1% Advertising 179.0 191.8 7.2% • Higher intersegment revenues from inbound cross-border volumes Press 349.6 299

  23. Slide 23: Staci contribution and e-commerce logistics momentum in Europe offset pressure in North America

    Staci contribution and e-commerce logistics momentum in Europe FY24 – 3PL offset continuous pressure in North America 3PL revenues, € million 3PL Europe 3PL North America Revenues up € +358.3m: Radial N. Am. revenues down € - 214.8m (-18.7% or -18.9% excl. FX) FY23 1,308.9 • € 337.7m consolidation i

  24. Slide 24: EBIT growth fueled by Staci's contribution, productivity gains in North America

    EBIT growth fueled by Staci’s contribution, productivity gains in FY24 – 3PL North America offset topline pressure € million 3PL FY23 FY24 D% Key takeaways FY24 3PL Europe 158.0 516.2 226.8% 3PL North America 1,150.9 936.1 -18.7% • Total operating income down € -193.7m (-14.7%), or up € +144.4m Inte

  25. Slide 25: Downtrading customers and Amazon's insourcing in North America offset Europe expansion

    Downtrading customers and Amazon’s insourcing in FY24 – Cross-border North America offset expansion efforts in Europe Cross-border revenues, € million Cross-border Europe Cross-border N. Am. Revenues up € +12.1m (+3.5%) Revenues down € -29.2m (-10.5%) FY23 626.9 mainly from: mainly reflecting lower

  26. Slide 26: Topline pressure in North America leads to lower EBIT and margin dilution

    Topline pressure in North America leads to lower EBIT and FY24 – Cross-border margin dilution € million Global Cross-border FY23 FY24 D% Key takeaways FY24 Cross-border Europe 349.5 361.6 3.5% Cross-border North America 277.4 248.1 -10.5% • Total operating income down € -18.6m (-2.9%) Intersegment a

  27. Slide 27: Salary indexations offset by last year's compliance review costs

    Salary indexations offset by last year’s compliance review costs FY24 – Corporate € million Corporate FY23 FY24 D% Key takeaways FY24 External operating income 7.0 4.3 -39.1% Intersegment Operating Income 422.6 406.8 -3.7% • External revenues down € -2.7m from lower building sales Total operating in

  28. Slide 28: Net cash flow reflects acquisition of Staci, partly funded through bond issuance

    Net cash flow reflects acquisition of Staci, partly funded through FY24 bond issuance € million - Adjusted FY23 FY24 D Cash flow from operating activities before Δ in WC and provisions 418.9 498.0 79.2 1 Change in working capital and provisions -45.8 48.6 94.3 2 Cash flow from operating activities 3

  29. Slide 29: Additional info

    Additional info

  30. Slide 30: Adjusted vs. reported Cash Flow Statement 4Q24

    Adjusted vs. reported Cash Flow Statement 4Q24 € million Reported Adjusted 4Q23 4Q24 D 4Q23 4Q24 D Cash flow from operating activities before Δ in WC and provisions 122.3 159.9 37.5 122.3 159.9 37.5 Change in working capital and provisions 37.9 123.3 85.3 3.4 95.9 92.5 1 Cash flow from operating act

  31. Slide 31: Adjusted vs. reported Cash Flow Statement FY24

    Adjusted vs. reported Cash Flow Statement FY24 € million Reported Adjusted FY23 FY24 D FY23 FY24 D Cash flow from operating activities before Δ in WC and provisions 418.9 498.0 79.2 418.9 498.0 79.2 Change in working capital and provisions -42.6 36.8 79.4 -45.8 48.6 94.3 1 Cash flow from operating a

  32. Slide 32: Balance Sheet

    Balance Sheet 4Q24 € million € million Assets Dec 31, 2023 Dec 31, 2024 Equity and Liabilities Dec 31, 2023 Dec 31, 2024 Property, Plant and Equipment 1,372.0 1,627.7 Total equity 1,026.5 854.8 Intangible assets 810.9 1,945.5 Interest-bearing loans & borrowings 1,291.0 2,547.6 Investments in associa

  33. Slide 33: Financing Structure & Liquidity

    Financing Structure & Liquidity 4Q24 € million € million Available Liquidity Dec 31, 2023 Dec 31, 2024 External Funding Dec 31, 2023 Dec 31, 2024 Ca sh & c a sh eq u iv a l en ts 870.6 747.4 L o n g -term 650.0 1,653.5 1 Cash in network 122.5 133.8 Long-term bond (1.25% - 07/2026) 650.0 650.0 Transi

  34. Slide 34: 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 34

bpost — Q4 2024 Earnings Presentation on 6ix