Ctt - Correios De Portugal Sa · EURONEXT:CTT
Ctt - Correios De Portugal Sa — Ctt Correios Portgl — Q1 2025 Earnings Presentation
20 slides from Ctt - Correios De Portugal Sa's earnings presentation, Mar 9, 2025
Slide 1: Commitment with Purpose: 1Q25 Results Presentation
8 May 2025 20 March 2025 Commitment with Purpose 1Q25 Results Presentation
Slide 2: Disclaimer
Disclaimer DISCLAIMER FORWARD-LOOKING STATEMENTS This document has been prepared by CTT – Correios de Portugal, S.A. (the “Company” or “CTT”) exclusively for This presentation contains forward-looking statements. All the statements herein which are not historical use during the presentation of the 1
Slide 3: Operational Review
ctt Operational Review ts
Slide 4: Recurring EBIT growth driven by recovery in Financial Services
Recurring EBIT growth driven by recovery in Financial Services Overview Revenues1 Recurring EBIT1 € million; % change y.o.y. € million; % change y.o.y. +9.5% +19.5% 288.5 20.2 +6.9 +2.4 +3.7 +15.8 263.5 16.9 -0.5 +0.1 1Q24 ∆ Logistics ∆ Bank ∆ FS 1Q25 1Q24 ∆ Logistics ∆ Bank ∆ FS 1Q25 Public debt pl
Slide 5: Continued growth in volumes, revenues and recurring EBIT
Continued growth in volumes, revenues and recurring EBIT Express & Parcels E&P Iberia | CEP Volumes Revenues Recurring EBIT million items € million; % change y.o.y. € million; % change y.o.y. margin +15.0% +23.0% 5.6% 5.6% 34.7 124.7 30.2 101.4 1.0% +24.5% 7.0 17.9 64.7 5.6 0.7 1Q23 1Q24 1Q25 1Q23 1
Slide 6: Baseline revenue stabilisation underpinned by price increases
Baseline revenue stabilisation underpinned by price increases Mail & Other Addressed mail revenues Revenues Recurring EBIT € million Mar’24 Elections Baseline € million € million Margin: 2.6% 0.4% 1.1% 3.2 -7.9% -6.0% 100.7 125.3 +0.2% 95.1 92.8 118.9 7.8 117.7 7.8 -0.2% -2.8 +219% 1.3 93.0 117.5 0.
Slide 7: Public debt placements reflect improved market conditions
Public debt placements reflect improved market conditions Financial Services Public debt placements Healthcare plans FS | Revenues & Rec. EBIT € million # users € million 1Q24 1Q25 +26% +123% 32,414 +474% +740% 12.5 1,693 25,815 +64% +126% 1,033 6.6 5.6 +193% 2.9 295 3,075 1,048 1Q24 4Q24 1Q25 2022
Slide 8: Continued growth in business volumes and revenues
Continued growth in business volumes and revenues Banco CTT Business volumes Banking revenues Profit Before Tax € billion € million € million Current Accounts1: 657.9 681.3 687.8 NIM: 2.4% 2.1% +8% +14% +0.1 33.6 7,009 7,081 +1% +1.2 +1% 31.1 1.1 5.1 5.1 6,192 1Q24 4Q24 1Q25 1Q24 ∆ NII ∆ ∆ Other 1Q2
Slide 9: Financial Review
ctt Financial Review
Slide 10: 1Q25 stronger than expected for the season
1Q25 stronger than expected for the season Financial Review Key financial indicators € million; % change vs. prior year Quarter 1Q24 1Q25 y.o.y Revenues1 263.5 288.5 9.5% Operating costs - EBITDA2 229.4 248.7 8.4% EBITDA2 34.0 39.9 17.2% Depreciation & amortisation 17.1 19.7 14.8% Recurring EBIT1 16
Slide 11: E&P is the fastest growing activity, followed by FS and Retail
E&P is the fastest growing activity, followed by FS and Retail Financial Review Revenues1 Revenue1 breakdown € million; % change vs. prior year € million; % change vs. prior year; % of total 1Q25 % of +9.5% 11.6% total Express & +23.3 -7.5 288.5 Parcels +6.9 4.3% +2.4 43.2% 124.7 (+23.0%) Mail & Oth
Slide 12: Continued focus on profitability
Continued focus on profitability Financial Review Operating costs1 Operating costs (Rec. EBIT)1 breakdown € million; % change vs. prior year € million; % change vs. prior year; % of total +8.8% 1Q25 268.3 Staff +3.2 % of -5.6 107.1 (+4.8%) +2.3 7.3% total +21.9 19.7 2.8% External Supplies 1.6% & Ser
Slide 13: EBIT growth benefited E&P and FS, despite elections in Mar'24
EBIT growth benefited E&P and FS, despite elections in Mar’24 Financial Review Recurring EBIT1 € million; % change vs. prior year Margin: 6.4% 7.0% +19.5% +3.7 +0.1 20.2 +1.4 -1.9 16.9 1Q24 ∆ E&P ∆ Mail & Other2 ∆ FS ∆ Bank 1Q25 Normalisation of public debt placements is a positive driver of recurri
Slide 14: Consolidated FCF reflecting seasonal payments by Banco CTT
Consolidated FCF reflecting seasonal payments by Banco CTT Financial Review 1Q25 Cash flow Net financial debt as at 31 March 20251 € million; impact on cash flow vs. prior year € million EBITDA 39.9 (+5.8) Consolidated IFRS16 affecting EBITDA -10.5 (-2.3) (+) Cash & cash equivalents 310.4 Impairment
Slide 15: Strong cash-flow generation underpinning balance sheet flexibility
Strong cash-flow generation underpinning balance sheet flexibility Financial Review 1Q25 Cash flow Evolution of net debt EBITDA and leverage € million; with Banco CTT under equity method € million; with Banco CTT under equity method € million; with Banco CTT under equity method OCF FCF Net debt EBIT
Slide 16: Outlook & Final Remarks
ctt Outlook & Final Remarks
Slide 17: Acquisition of Cacesa concluded within envisaged schedule
Acquisition of Cacesa concluded within envisaged schedule Express & Parcels Enterprise Value (in €m) Main considerations: 91.0 89.1 -€2m • The transaction was completed on 30 April 2025, aligned with the market announcement of 18 December 2024. • The final purchase price rose from €103.8m to €106.8m
Slide 18: Already integrating Cacesa
Already integrating Cacesa Express & Parcels 1 Organisational Structure 2 Commercial Approach To maximize know-how transfer, Cacesa will keep Integrated commercial approach between CTT and current organisational structure, although coordinated Cacesa, reinforcing value proposition for its customers
Slide 19: Solid start towards meeting the >€100m organic recurring EBIT guidance
Solid start towards meeting the “>€100m organic recurring EBIT” guidance Overview Operating Solid Balance sheet Inorganic Shareholder performance Cash Flow flexibility transactions remuneration • Another quarter of • Operating cash flow1 of • 1.7x net debt to • Cacesa: acquisition • SBB: €25m acquis
Slide 20: Commitment with Purpose: Investor Relations
Commitment with Purpose 1Q25 Results Presentation Investor Relations Phone: +351 210 471 087 E-mail: investors@ctt.pt ctt.pt 8 May 2025