Slide 1: Second quarter 2022 results Analyst call
Second quarter 2022 results Analyst call Dirk Tirez, CEO Philippe Dartienne, CFO August 5th, 2022
Slide 2: Investor presentation 2Q22 disclaimer
Investor presentation 2Q22 Interim financial report 2Q22 Financial Calendar Disclaimer 09.11.2022 (17:45 CET) This presentation is based on information published by bpost group in its Second Quarter 2022 Interim Financial Report, made available on August 4th, 2022 at 5.45pm CET on bpostgroup.com/inv
Slide 3: Highlights of 2Q22
Highlights of 2Q22 2Q22 Second quarter exceeds initial guidance. Results supported by resilient mail revenues, growth at Radial NA, and implementation of management actions to mitigate unfavorable macro-economic environment and support long-term growth Group operating Belgium E-Logistics Eurasia E-L
Slide 4: Results obtained despite adverse macro-economic environment with accelerating inflation
These results were obtained despite the adverse Macro-economic macro-economic environment with inflation further accelerating Consumer confidence slightly Online retail sales in Belgium Inflation has further accelerated recovered in Belgium improved in May in 2Q22 Feb-22 Mar-22 Apr-22 May-22 Jun-22
Slide 5: Key financials 2Q22
Key financials 2Q22 2Q22 € million Reported Adjusted1 2Q21 2Q22 2Q21 2Q22 %↑ 1 Amortization and impairments of intangibles recognized during Total operating income 1,037.9 1,035.5 1,037.9 1,035.5 -0.2% PPA are adjusted, leading to Operating expenses 866.5 884.8 866.5 884.8 2.1% increase in EBIT (€ +
Slide 6: Belgium: mail revenue decline and pressure on parcels
Mail revenue decline from non-recurring COVID communications 2Q22 – Belgium and continued pressure on parcels despite resilient volumes in May/June Belgium external operating income, € million Domestic Mail Parcels Belgium -13% Operating income down € -7.3m: Total Parcels Belgium revenue down € -11.
Slide 7: Belgium: EBIT driven by lower volumes and inflationary impacts
EBIT driven by lower volumes and inflationary impacts on energy 2Q22 – Belgium and payroll costs mitigated by accelerated FTEs reduction € million Belgium 2Q21 2Q22 %↑ Key takeaways 2Q22 External operating income 565.1 519.3 -8.1% Transactional 188.9 182.6 -3.3% • Total operating income down € -51.0
Slide 8: E-Log. Eurasia: growth in Radial and Active Ants offset by Dyna
Growth in Radial and Active Ants offset by Dyna while Asian 2Q22 – E-Log. Eurasia volumes remain under pressure due to new VAT regulation and lockdowns E-Logistics Eurasia external operating income, € million E-commerce logistics Cross-border Revenue down € -2.2m (-3.3%): Revenue down € -24.6m (-25.
Slide 9: E-Log. Eurasia: EBIT impacted by lower cross-border volumes
EBIT impacted by lower cross-border and personalized 2Q22 – E-Log. Eurasia logistics volumes, higher payroll costs € million E-Logistics Eurasia 2Q21 2Q22 %↑ Key takeaways 2Q22 External operating income 163.0 136.2 -16.5% E-commerce logistics 67.6 65.3 -3.3% • Total operating income down € -28.8m (-
Slide 10: E-Log. N. Am.: strong revenue driven by Radial's new customers
Continued strong revenue development driven by Radial’s 2Q22 – E-Log. N. Am. new customers launched in 2021 E-Logistics N. America external operating income, € million E-commerce logistics Radial NA revenues (m$) YoY increase of +29.7% (+14.9% at in perspective 2Q21 308.1 constant exchange rate). +1
Slide 11: E-Log. N. Am.: sharp EBIT uplift at Radial and Landmark Global
Sharp EBIT uplift driven by strong performance at Radial and 2Q22 – E-Log. N. Am. Landmark Global € million E-Logistics North America 2Q21 2Q22 %↑ Key takeaways 2Q22 External operating income 308.1 377.3 22.5% E-commerce logistics 290.9 377.3 29.7% • Total operating income up € +68.8m (+22.2%, +8.2%
Slide 12: Corporate EBIT increase driven by lower OPEX
Corporate EBIT increase driven by lower OPEX 2Q22 – Corporate € million Corporate 2Q21 2Q22 %↑ Key takeaways 2Q22 External operating income 1.7 2.7 62.7% Intersegment operating income 96.9 96.4 -0.4% • External revenues € +1.0m higher than last year, from higher building Total operating income 98.5
Slide 13: Cash flow from operating activities impacted by phasing
Stable Cash Flow from Operating activities negatively impacted by 2Q22 different phasing over quarters € million - Adjusted 2Q21 2Q22 Delta Cash flow from operating activities before Δ in WC and provisions 107.4 106.1 -1.3 1 Change in working capital and provisions -139.7 -201.9 -62.2 2 Cash flow fr
Slide 14: Outlook FY22: downward revision of guidance risk
Despite continued market disruptions, bpost revises downwards Outlook FY22 the risk to the guidance to up to € 25m on the back of a strong 2Q22 Whereas 1Q22 was in line with our initial guidance, 2Q22 outperforms our initial full year 2022 EBIT guidance of € 280-310m issued on February 24, 2022, not
Slide 15: Management measures to mitigate impacts on EBIT
Management continues to implement measures at all levels to Outlook FY22 mitigate unfavorable impacts on EBIT and to execute on 2022 priorities Belgium E-Logistics E-Logistics Group Eurasia North America • Parcels commercial plan to • Increased sales efforts paying off • Pricing adjustments to refle
Slide 16: Additional info
Additional info
Slide 17: Adjusted vs. reported Cash Flow Statement
Adjusted vs. reported Cash Flow Statement 2Q22 € million Reported Adjusted 2Q21 2Q22 Delta 2Q21 2Q22 Delta Cash flow from operating activities before Δ in WC and provisions 107.4 106.1 -1.3 107.4 106.1 -1.3 Change in working capital and provisions -139.9 -205.3 -65.4 -139.7 -201.9 -62.2 1 Cash flow
Slide 18: Balance Sheet
Balance Sheet 2Q22 € million € million Assets Dec 31, 2021 Jun 30, 2022 Equity and Liabilities Dec 31, 2021 Jun 30, 2022 PPE 1,263.5 1,355.4 Total equity 885.3 983.7 Intangible assets 797.0 854.3 Interest-bearing loans & borrowings 1,377.7 1,478.0 Investments in associates and joint ventures 0.0 0.1
Slide 19: Financing Structure & Liquidity
Financing Structure & Liquidity 2Q22 € million € million Available Liquidity Dec 31, 2021 Jun 30, 2022 External Funding Dec 31, 2021 Jun 30, 2022 Ca sh & c a sh eq u iv a l en ts 907.5 905.3 L o n g -term Cash in network 149.9 147.7 Long-term bond1 (1.25% - 07/2026) 650.0 650.0 Transit accounts 44.9
Slide 20: Belgian payroll costs: next indexation in Sept. 22
Belgian payroll costs: next indexation now occurring in Sept. ’22 Outlook FY22 with € 7.5m additional cost (€ ~24.5m total impact vs. guidance) Belgian salary indexations Federal Planning Bureau Inflation forecasts Forecast July 5, 2022 • Under the Belgian social security system, salaries are Actual
Slide 21: 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 21