Slide 1: Third quarter 2021 results Analyst call
Third quarter 2021 results Analyst call Dirk Tirez, CEO Leen Geirnaerdt, CFO November 10th, 2021
Slide 2: Financial calendar and disclaimer
Investor presentation 3Q21 Interim financial report 3Q21 Financial Calendar Disclaimer 24.02.2022 (17:45 CET) This presentation is based on information published by bpost group in its Third Quarter 2021 Interim Financial Report, made available on November 9th, 2021 at 5.45pm CET on corporate.bpost.b
Slide 3: Highlights of 3Q21
Highlights of 3Q21 3Q21 bpost delivers third quarter results in line with expectations and reaffirms its full year EBIT guidance. As anticipated, lower 3Q21 vs LY, from return of pre-covid seasonal pattern, LVCR impacts and expected costs. 2021 Group adjusted Mail & Retail Parcels & Logistics Parcel
Slide 4: EBIT impacted by anticipated costs, lower Asian cross-border volumes
EBIT impacted by anticipated costs, lower Asian cross-border 3Q21 volumes, mitigated impact of mail decline and Radial’s revenue growth € million 69.5 4.4 -15.5 -30.4 -17.7 -1.2 39.1 +4.0 65.1 8.1 • M&R: € 6.3m of impairment charges on Ubiway Retail Adjusted1 • PaLo N. Am.: € 1.4m gain Reported on s
Slide 5: Confident to maintain 4Q21 guidance (1/2): Preparation of end of year peak
Confident to maintain 4Q21 guidance (1/2) Management Preparation of end of year peak Preparation of the end of year peak in Belgium • Secured distribution and sorting capacity to capture growth vs. 2020 peak (incl. through temporary parcel sorting machinery in 2 sites) • Optimized 2nd distribution w
Slide 6: Confident to maintain 4Q21 guidance (2/2)
Confident to maintain 4Q21 guidance (2/2) Management Macro-economic trends, operational efficiency and cost reduction Anticipating on adverse macro-economic trends • Mitigating exposure to e-commerce supply chain disruptions • Mitigating exposure to inflation given standard indexing provisions in e-
Slide 7: Key financials 3Q21
Key financials 3Q21 3Q21 € million Reported Adjusted1 3Q20 3Q21 3Q20 3Q21 %↑ 1 Gain on sale of The Mail Group (€ +1.4m) Total operating income 972.9 1 977.6 972.9 1 976.2 0.3% Operating expenses 840.1 871.6 840.1 871.6 3.8% 2 Amortization and impairments EBITDA 132.8 106.0 132.8 104.6 -21.2% of inta
Slide 8: Mail price increase offsets volume decline
The mail price increase offsets volume decline, re-converging 3Q21 – M&R towards underlying trend, and a recovery in retail activities M&R external operating income, € million Domestic Mail Domestic Mail units Proximity and 3Q20 414.3 Operating income up € 1.4m: in perspective convenience retail • €
Slide 9: M&R adjusted EBIT decline due to expected higher costs
M&R adjusted EBIT decline due to expected higher costs 3Q21 – M&R € million Mail & Retail External operating income 3Q20 414.3 3Q21 421.4 %↑ 1.7% Key takeaways 3Q21 Transactional 168.3 167.6 -0.4% • Total operating income up € +5.7m (+1.2%) Advertising 45.9 47.1 2.7% Press 78.7 79.5 1.1% • Operating
Slide 10: Decline in Asian cross-border volumes stabilizing
Decline in Asian cross-border volumes stabilizing from 3Q21 – PaLo Eurasia 3Q20’s spike and LVCR, mitigated by growth in Parcels B2X and logistics PaLo Eurasia external operating income, € million Parcels BeNe Parcels B2X volumes Cross-border Total Parcels BeNe revenue down Revenue down € -23.9m (-2
Slide 11: EBIT impacted by decline in cross-border revenues and e-commerce logistics expansion
EBIT mainly impacted by decline in cross-border revenues 3Q21 – PaLo Eurasia and e-commerce logistics expansion plan € million Parcels & Logistics Europe and Asia External operating income 3Q20 259.5 3Q21 234.6 %↑ -9.6% Key takeaways 3Q21 Parcels BeNe 125.6 124.0 -1.3% • Total operating income down
Slide 12: Top-line boost from Radial's new customers launched in 2021
Top-line boost from accelerating contribution of Radial’s new 3Q21 – PaLo N. Am. customers launched in 2021 PaLo North America external operating income, € million E-commerce logistics Radial NA revenues International mail YoY increase of +14.2% (+14.9% at in perspective Revenue decline of -66.2%1 f
Slide 13: E-commerce logistics revenue offset by wage pressure in the U.S.
E-commerce logistics revenue development offset by wage 3Q21 – PaLo N. Am. rate pressure in the U.S. and start-up expansion costs € million Parcels & Logistics North America External operating income 3Q20 294.9 3Q21 319.4 %↑ 8.3% Key takeaways 3Q21 E-commerce logistics 273.4 312.2 14.2% • Total oper
Slide 14: Corporate EBIT in line with last year
Corporate EBIT in line with last year 3Q21 – Corporate € million Corporate External operating income 3Q20 4.2 3Q21 2.2 %↑ -47.4% Key takeaways 3Q21 Intersegment operating income 86.2 102.2 18.5% • External revenues lower than last year by €-2.0m, from lower Total operating income 90.4 104.4 15.5% bu
Slide 15: Positive impact from lower tax prepayment and deferred SGEI compensation
Positive impact from lower tax prepayment and deferred payment 3Q21 schedule of SGEI compensation Reported ‐ € million 3Q20 3Q21 Delta Cash flow from operating activities before Δ in WC and provisions 93.6 94.5 0.9 1 Change in working capital and provisions -23.0 54.5 77.5 2 Cash flow from operating
Slide 16: 2021 group EBIT outlook reiterated
2021 group EBIT outlook reiterated Outlook FY21 Given current insight on normalization for e-commerce activities post-COVID, bpost confirms its earlier guidance and still expects the group adjusted EBIT to be above € 340m Mail & Parcels & Parcels & Group Dividend Retail Logistics Europe Logistics No
Slide 17: 2022 management priorities: BE operations, cost reduction, e-commerce logistics
2022 management priorities Management BE operations, cost reduction and e-commerce logistics growth A Belgian organization that enables to accelerate the transformation • Bundling of Belgian parcels activities with M&R into one Belgium business unit • Accelerate transition of mail and parcel operati
Slide 18: 2022 management priorities: ESG and press contract
2022 management priorities Management ESG and press contract Sustainability / ESG • Ambition for bpost group to become one of the greenest e-commerce logistics providers in the countries where we operate by 2030: • Decrease of scope 1 and 2 emissions with 55% by 2030 against 2019, bringing bpost in
Slide 19: Other developments
Other developments Management Strengthening the top executive leadership team at bpost Review of the roles and responsibilities of the group executive committee to strengthen the executive leadership team, to focus on the execution of the Management priorities and to accelerate the transformation jo
Slide 20: Additional info
Additional info \ *
Slide 21: Balance Sheet
Balance Sheet 3Q21 € million € million Assets Dec 31, 2020 Sep 30, 2021 Equity and Liabilities Dec 31, 2020 Sep 30, 2021 PPE 1,138.0 1,158.9 Total equity 583.8 790.4 Intangible assets 771.7 782.4 Interest-bearing loans & borrowings 1,443.2 1,331.9 Investments in associates and joint ventures 0.1 0.0
Slide 22: Financing Structure & Liquidity
Financing Structure & Liquidity 3Q21 € million € million Available Liquidity Dec 31, 2020 Sep 30, 2021 External Funding Dec 31, 2020 Sep 30, 2021 Ca sh & c a sh eq uiva lents 9 4 8 .1 8 74 .3 L o ng -ter m Cash in network 167.2 166.4 Long-term bond1 (1.25% - 07/2026) 650.0 650.0 Transit accounts 32.
Slide 23: 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 23 2Q21 Analyst Presentation