Postnl Nv · EURONEXT:PNL
Postnl Nv — Q1 2017 Earnings Presentation
23 slides from Postnl Nv's earnings presentation, May 8, 2017
Slide 1: Q1 2017 results
Q1 2017 results The Hague, 8 May 2017
Slide 2: Q1 2017 agenda: Business review
Q1 2017 Q&A • Business review • Financial review 2
Slide 3: Q1 2017 results – e-commerce growth continues
Q1 2017 results – e-commerce growth continues Reconfirm outlook 2017 Revenue and revenue mix Underlying cash Net cash from operating and Consolidated equity operating income investing activities €870m €50m €(20)m €(32)m 34% e-commerce Q1 2016: €864m; 31% e-commerce Q1 2016: €61m Q1 2016: €(26)m YE 2
Slide 4: Mail in the Netherlands
Mail in the Netherlands Supported by some incidentals Revenue Underlying cash Total cost savings Addressed mail volume operating income Q1 2017 decline €450m €28m €15m 9.6%* Q1 2016: €472m Q1 2016: €38m (-5%) • Volume decline driven by ongoing substitution • Phasing effects in bulk mail • Higher dec
Slide 5: Regulatory framework
Regulatory framework PostNL remains concerned about expected adverse effects non-USO Dutch postal market and USO Non-USO • Ministry of Economic Affairs to publish long-term vision on • PostNL is concerned about expected adverse effects Dutch postal market • ACM measures • Evaluation of USO in first
Slide 6: €15m cost savings realised in Q1 2017
€15m cost savings realised in Q1 2017 On track to realise target of €55m - €75m for 2017 Efficiency delivery process • 5 depots migrated Optimise retail network • Reduction of 50 postal offices and 500 letter boxes Efficiency sorting process Roll-out of the last four machines; equip all machines w
Slide 7: Parcels
Parcels Strong underlying volume growth and solid business performance Revenue breakdown Revenue Underlying cash Volume growth Non-volume related Volume related operating income Logistics & other Q1 2017 International €249m €28m 8% €249m Benelux Q1 2016: €234m Q1 2016: €28m (6%) • Adjusted for inter
Slide 8: Accelerating transformation
Accelerating transformation Ambition to become the e-food logistics service provider in the Benelux Anticipated increase % Food deliveries PostNL Developing markets - now >40 clients food market online 10% 2015-2017: CAGR > 500% NL 2.9% 2015 2020 Food boxes Sources: CBL, 2016; FEVIA, 2013; Syndy, 20
Slide 9: International
International Performance improved, progress accelerating transformation visible Revenue breakdown Revenue Underlying cash operating income Spring & other Germany Q1 2017 €285m €5m €285m Italy Q1 2016: €266m Q1 2016: €3m (7%*) Spring & other Germany Italy • Lower revenue, impacted by stricter rules
Slide 10: Q1 2017 agenda: Financial review
Q12017 Q&A • Business review • Financial review 10
Slide 11: Financial highlights Q1 2017
Financial highlights Q1 2017 (in € millions) Q1 2017 Q1 2016 change Reported revenue 870 864 1% Reported operating income 66 70 -6% Restructuring related charges 7 Project costs and other 2 2 Underlying operating income 68 79 -14% Underlying cash operating income 50 61 -18% Net cash used in operatin
Slide 12: Underlying (cash) operating income
Underlying (cash) operating income In line with expectations, supported by some incidentals (in € millions) 13 79 15 3 0 5 (1) (2) 68 61 (20) (6) (15) (3) 50 Underlying Changes Changes Underlying Volume / Autonomous Cost Parcels Inter- Pension Other Underlying Changes Changes Underlying cash in in o
Slide 13: Results by segment
Results by segment Underlying Underlying cash Revenue operating income operating income (in € millions) Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Mail in the Netherlands 450 472 41 51 28 38 Parcels 249 234 28 29 28 28 International 285 266 6 3 5 3 PostNL Other 18 44 (7) (4) (11) (8) Intercompa
Slide 14: Statement of income
Statement of income Lower financial expense contributed to improvement profit (in € millions) Q1 2017 Q1 2016 Revenue 870 864 Operating income 66 70 Net financial expenses (10) (17) Results from investments in associates and joint ventures 0 1 Income taxes (15) (15) Profit for the period 41 39 14
Slide 15: Net cash from operating and investing activities
Net cash from operating and investing activities Supported by favourable development working capital (in € millions) Q1 2017 Q1 2016 Cash generated from operations 59 49 Interest paid (1) (1) Income taxes paid (60) (65) Net cash used in operating activities (2) (17) Interest / dividends received / o
Slide 16: Positive impact of pensions on equity €3m
Positive impact of pensions on equity €3m Coverage ratio recovered to 106% Coverage ratio pension fund (in € millions) Q1 2017 107,0% 106.0% Return on plan assets in excess of interest income 65 103,6% Defined benefit obligation 35 Asset ceiling (32) Minimum funding requirement (64) Total pension 4
Slide 17: Consolidated statement of financial position
Consolidated statement of financial position Further improvement consolidated equity (in € millions) 1 Apr 2017 1 Apr 2017 Intangible fixed assets 205 Consolidated equity (32) Property, plant and equipment 502 Non-controlling interests 3 Financial fixed assets 56 Total equity (29) Other current asse
Slide 18: Q2 2017 expected to be around FY development
Q2 2017 expected to be around FY development Working days Q2 2017 2017 2016 • Net cash and equity development: impact dividend paid Q1 65 64 Q2 61 62 Q3 65 65 Q4 63 64 Total year 254 255 18
Slide 19: Progress accelerating transformation
Progress accelerating transformation Reconfirm outlook 2017 Key takeaways Q1 2017 Shift in revenue mix • UCOI PostNL in line with expectations supported by some % of revenue that relates to e-commerce incidentals 31% 34% • Addressed mail volume decline driven by substitution • Parcels volumes increa
Slide 20: Questions & Answers
Questions & Q&A Answers 20
Slide 21: Appendix
Appendix • Breakdown pension cash contribution and expenses 21
Slide 22: Breakdown pension cash contribution and expenses
Breakdown pension cash contribution and expenses Pensions Q1 2017 Q1 2016 (in € millions) Expenses Cash Expenses Cash Business segments 25 30 26 30 IFRS difference 2 (1) PostNL 27 30 25 30 Interest 2 3 Total 29 28 22
Slide 23: Published by: PostNL NV
Published by: PostNL NV Prinses Beatrixlaan 23 2595 AK The Hague The Netherlands Additional information is available at postnl.nl Warning about forward-looking statements: Some statements in this presentation are ’forward-looking statements‘. By their nature, forward-looking statements involve risk