Slide 1: Second quarter 2021 results Analyst call
Second quarter 2021 results Analyst call Dirk Tirez, CEO Leen Geirnaerdt, CFO 6 August 2021
Slide 2: Investor presentation 2Q21 disclaimer
Investor presentation 2Q21 Interim financial report 2Q21 Financial Calendar Disclaimer 09.11.2021 (17:45 CET) This presentation is based on information published by bpost group in its Second Quarter 2021 Interim Financial Report, made available on August 5th, 2021 at 5.45pm CET on corporate.bpost.be
Slide 3: Highlights of 2Q21
Highlights of 2Q21 2Q21 Compared to 2Q20 COVID lockdown, bpost delivers a strong quarter driven by mail revenues and sustained e-commerce in Europe As anticipated, accelerating contribution of new customers at Radial NA did not yet compensate non-recurring COVID lockdown growth of 2Q20 Updated Group
Slide 4: Strong 2Q21 EBIT, driven by mail evolution and sustained PaLo Eurasia activities
Strong 2Q21 EBIT, driven by mail evolution and sustained activities 2Q21 at PaLo Eurasia in post-COVID environment € million 2.3 -6.8 106.6 0.4 3.2 35.7 +31.6 74.9 4.7 103.4 Adjusted1 Reported 70.2 EBIT Mail & PaLo PaLo Corporate EBIT 2Q20 Retail Eurasia N. America 2Q21 1 Adjusted excludes items tha
Slide 5: Key financials 2Q21
Key financials 2Q21 2Q21 € million Reported Adjusted1 2Q20 2Q21 2Q20 2Q21 %↑ 1 Amortization and impairments of intangibles recognized Total operating income 1,052.7 1,037.9 1,052.7 1,037.9 -1.4% during PPA are adjusted, Operating expenses 917.0 866.5 917.0 866.5 -5.5% leading to increase in EBITDA 1
Slide 6: Top-line driven by mail volume rebound and price increase
Top-line driven by mail volume rebound and price increase, 2Q21 – M&R while retail and VAS also profited from soft comps of LY’s lockdown M&R external operating income, € million Domestic Mail Domestic Mail units Proximity and 2Q20 407.5 Operating income up € 28.8m: in perspective convenience retail
Slide 7: Doubled EBIT fueled by mail revenues and sustained parcel volumes
Doubled EBIT fueled by mail revenues and 2Q21 – M&R sustained parcel volumes handled in the mail network € million Mail & Retail External operating income 2Q20 407.5 2Q21 448.9 %↑ 10.2% Key takeaways 2Q21 Transactional 170.7 188.9 10.7% • Total operating income up € +39.9m (+8.5%) Advertising 37.5 4
Slide 8: e-commerce and cross border volumes surpassing last year's spike
e-commerce and cross border volumes surpassing last year’s 2Q21 – PaLo Eurasia spike, offset by anticipated negative P/M in Parcels B2X PaLo Eurasia external operating income, € million Parcels BeNe Parcels B2X volumes E-commerce logistics 2Q20 292.1 Total Parcels BeNe revenue down in perspective Re
Slide 9: EBIT margin supported by operating leverage in the integrated network
EBIT margin supported by benefits of operating leverage in 2Q21 – PaLo Eurasia the integrated network € million Parcels & Logistics Europe and Asia External operating income 2Q20 292.1 2Q21 279.3 %↑ -4.4% Key takeaways 2Q21 Parcels BeNe 149.4 140.8 -5.8% • E-commerce and cross-border volumes surpass
Slide 10: Contribution of Radial's new customers started to accelerate in June
Contribution of Radial’s new customers started to accelerate 2Q21 – PaLo N. Am. in June, not yet compensating the non-recurring extra volumes of 2Q20 PaLo North America external operating income, € million E-commerce logistics Radial NA revenues International mail YoY decline of -12.1% is a decrease
Slide 11: Tough comps of 2Q20 COVID spike and wage pressure in the U.S.
Very tough comps of the COVID-19 spike in 2Q20 and wage 2Q21 – PaLo N. Am. pressure in the U.S. result in a lower EBIT € million Parcels & Logistics North America External operating income 2Q20 351.9 2Q21 308.1 %↑ -12.4% Key takeaways 2Q21 E-commerce logistics 331.0 290.9 -12.1% • Total operating in
Slide 12: Corporate EBIT in line with last year
Corporate EBIT in line with last year 2Q21 – Corporate € million Corporate External operating income 2Q20 1.3 2Q21 1.7 %↑ 32.2% Key takeaways 2Q21 Intersegment operating income 85.4 96.9 13.4% • External revenues remained flat. Total operating income 86.7 98.5 13.7% Operating expenses 80.6 90.2 11.9
Slide 13: Cash flow from operating activities impacted by tax prepayment
Cash flow from operating activities mainly impacted by tax 2Q21 prepayment and temporary pandemic-related initiatives of 2Q20 Reported ‐ € million 2Q20 2Q21 Delta Cash flow from operating activities before Δ in WC and provisions 135.2 107.4 -27.8 1 Change in working capital and provisions -66.0 -139
Slide 14: 2021 group EBIT outlook revised upwards
2021 group EBIT outlook revised upwards Outlook FY21 In light of the second quarter results, and based on current assumptions of mail volume trend and normalization for COVID-19 e-commerce activities for the rest of the year, bpost expects the group adjusted EBIT to be above € 340m Mail & Parcels &
Slide 15: Update on management priorities
Update on management priorities Management Progress in line with plan • 2021 priorities from Q1 have all progressed • Preparation of the end of year peak • Cost reduction and operational efficiency in Mail & Retail Belgium • Reduction in overhead and headquarters costs • e-commerce logistics on both
Slide 16: Negotiation of 7th Management Contract
Negotiation of 7th Management Contract Management bpost entrusted again by the Belgian Government • Compensation for Services of General Economic Interest in the range of € 125-130m on an annual basis, subject to inflation • Services covered include • In line with 6th Management contract: Retail Net
Slide 17: Preparation of the end of year peak
Preparation of the end of year peak Management Preparation of the end of year (EOY) peak • Secured distribution and sorting capacity to capture growth vs. 2020 peak (incl. through temporary parcel sorting machinery in 2 sites) • >50% increase from Dec ’20 to Dec ’21 of parcels absorption in regular
Slide 18: Other developments
Other developments Management Cost reduction and operational efficiency in Mail & Retail Belgium • Ongoing capture of benefits of the Alternating Distribution Model (ADM) • Productivity gains realized through restored reorganizations of mail offices (77 reorganizations in 2020, more than double plan
Slide 19: Other developments
Other developments Management Parcel operating model optimization • Launch of operational benchmarking and process optimization against best-in-class operators to further improve our operating model. Objective to translate parcels growth into best-in-class satisfaction and operating performance for
Slide 20: Half year 2021 results
Half year 2021 results 6 August 2021
Slide 21: Strong 1H21 EBIT, driven by mail evolution and sustained growth in Parcels & Logistics
Strong 1H21 EBIT, driven by mail evolution and sustained growth 1H21 in Parcels & Logistics as the pandemic progressively starts to unwind € million -1.2 222.1 8.9 6.4 22.7 +71.5 41.1 150.6 215.7 9.3 Adjusted1 Reported 141.3 EBIT Mail & PaLo PaLo Corporate EBIT 1H20 Retail Eurasia N. America 1H21 1
Slide 22: Key financials 1H21
Key financials 1H21 1H21 € million Reported Adjusted1 1H20 1H21 1H20 1H21 %↑ 1 Amortization and impairments of intangibles recognized Total operating income 1,987.3 2,057.8 1,987.3 2,057.8 3.5% during PPA are adjusted, Operating expenses 1,714.4 1,709.2 1,714.4 1,709.2 -0.3% leading to increase in E
Slide 23: Top-line driven by mail volume rebound and price increase
Top-line driven by mail volume rebound and price increase, 1H21 – M&R while in 2Q21 retail and VAS also profited from soft comps of last year M&R external operating income, € million Domestic Mail Transactional Advertising Operating income up € 25.3m: • -5.8% underlying volume decline • +4.1% underl
Slide 24: EBIT increase driven by mail revenue and high parcel volumes
EBIT increase driven by mail revenue and high parcel volumes 1H21 – M&R handled through the mail network € million Mail & Retail External operating income 1H20 865.2 1H21 895.8 %↑ 3.5% Key takeaways 1H21 Transactional 364.0 379.1 4.2% • Total operating income up € +46.7m (+4.8%) driven by (1) price
Slide 25: PaLo Eurasia revenue driven by e-commerce development
PaLo Eurasia revenue driven by e-commerce development 1H21 – PaLo Eurasia both domestically and abroad PaLo Eurasia external operating income, € million Parcels BeNe E-commerce logistics Cross-border Total Parcels BeNe revenues up Revenue up € +0.5m (+0.5%) as a Revenue up € +27.8m (+17.1%) 1H20 502
Slide 26: Strong growth in parcels drove EBIT growth and margin improvement
Strong growth in parcels efficiently handled through the mail 1H21 – PaLo Eurasia network drove EBIT growth and steep margin improvement Key takeaways 1H21 € million Parcels & Logistics Europe and Asia 1H20 1H21 %↑ External operating income 502.5 563.2 12.1% Parcels BeNe 254.1 286.5 12.7% • Total op
Slide 27: Continued e-commerce development at PaLo NA despite slower Radial growth
Continued e-commerce development at PaLo NA despite 1H21 – PaLo N. Am. slower growth at Radial against high comps of 2Q20, excluding FX PaLo North America external operating income, € million E-commerce logistics International mail Decline of -2.6% is a YoY increase of +6.0% at Revenue decline of -1
Slide 28: Nearly doubling EBIT driven by top-line development
Nearly doubling EBIT driven by top-line development, 1H21 – PaLo N. Am. despite slower growth at Radial in 2Q21 and wage pressure in the U.S. € million Parcels & Logistics North America External operating income 1H20 611.8 1H21 589.3 %↑ -3.7% Key takeaways 1H21 E-commerce logistics 569.0 554.3 -2.6%
Slide 29: Corporate EBIT almost neutral as building sales compensate net costs
Corporate EBIT almost neutral as building sales 1H21 – Corporate compensate net costs € million Corporate External operating income 1H20 7.6 1H21 9.6 %↑ 25.6% Key takeaways 1H21 Intersegment operating income 175.9 199.5 13.4% • External revenues up € +2.0m driven by higher building sales. Total oper
Slide 30: Cash flow from operating activities impacted by SGEI payment calendar
Cash flow from operating activities impacted by SGEI payment 1H21 calendar, tax prepayment and pandemic-related initiatives of 1H20 Reported ‐ € million 1H20 1H21 Delta Cash flow from operating activities before Δ in WC and provisions 273.0 272.5 -0.5 1 Change in working capital and provisions 51.8
Slide 31: Additional info
Additional info
Slide 32: Balance Sheet
Balance Sheet 2Q21 € million € million Assets Dec 31, 2020 Jun 30, 2021 Equity and Liabilities Dec 31, 2020 Jun 30, 2021 PPE 1,138.0 1,139.7 Total equity 583.8 759.0 Intangible assets 771.7 775.0 Interest-bearing loans & borrowings 1,443.2 1,305.0 Investments in associates and joint ventures 0.1 0.1
Slide 33: Financing Structure & Liquidity
Financing Structure & Liquidity 2Q21 € million € million Available Liquidity Dec 31, 2020 Jun 30, 2021 External Funding Dec 31, 2020 Jun 30, 2021 Ca sh & c a sh eq uiva lents 9 4 8 .1 8 15.8 L o ng -ter m Cash in network 167.2 165.8 Long-term bond1 (1.25% - 07/2026) 650.0 650.0 Transit accounts 32.2
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: bpost group, Centre Monnaie, 1000 Brussels, Belgium 34 2Q21 Analyst Presentation