Postnl Nv · EURONEXT:PNL
Postnl Nv — Q2 2022 Earnings Presentation
40 slides from Postnl Nv's earnings presentation, Aug 8, 2022
Slide 1: Q2 2022 Results
Q2 2022 Results The Hague － 8 August 2022
Slide 2: Additional information and forward-looking statements
Additional information looking statements involve known and unknown risks, Use of non-GAAP information uncertainties and other factors that are outside of our control and Additional information is available at www.postnl.nl. Elements of In presenting and discussing the PostNL Group operating results
Slide 3: Key takeaways
Key takeaways Q2 2022 normalised EBIT at €10m • High inflation and pressure on consumer spending impacted costs and development e-commerce volumes • Volumes at Parcels • domestic volume growth ~3%, excluding non-recurring impact related to Covid-19 • overall volumes -12.6% reflecting no further Covi
Slide 4: Q2 2022 performance
Q2 2022 performance External headwinds impacted results Key financial metrics (in € million) Q2 2021 Q2 2022 change HY 2021 HY 2022 change Revenue 838 746 -11% 1,800 1,552 -14% Normalised EBIT 63 10 -84% 193 43 -78% Assumed to be non-recurring and 26 (0) 69 0 related to Covid-19 Free cash flow 54 (4
Slide 5: Strategic business drivers and business development
Q2 2022 Strategic business drivers and business development 4
Slide 6: Value creation for attractive total shareholder returns
Value creation for attractive total shareholder returns To be your favourite deliverer Strategic objectives Value creation proposition Business objectives • Enhance customer interaction Help customers grow their business Parcels • Capture further e-commerce growth Manage for profitable • Manage netw
Slide 7: ESG – our licence to operate
ESG – our licence to operate Progress Q2 2022 Environmental • Clean kilometres • 20% carbon efficiency (g/km) improvement vs FY 2021 Improve environmental impact • Network efficiency • Offsetting remaining carbon emissions in 2022, cutting • Sustainable buildings and facilities footprint to net zero
Slide 8: Accelerating digital transformation
Accelerating digital transformation Consumers and customers increasingly digitally connected to our platform HY 2021 HY 2022 Examples Q2 2022 Online visitors 470m 407m Speed up APL implementation of which via mobile 69% 68% • Enhance convenient last-mile services PostNL consumer accounts 6.4m 7.2m •
Slide 9: Parcels: Lower volumes and increasing costs
Parcels: Lower volumes and increasing costs Unprecedented inflation impacts margin Revenue Normalised EBIT* Volumes Revenue mix in € million Q2 2021 Q2 2022 Q2 2022 €519m €14m 83m -12.6% Parcels Netherlands 383 345 Spring 131 91 Q2 2021 €589m €56m 95m Logistics solutions and other 100 98 * No Covid-
Slide 10: Parcels managed for profitable growth
Parcels managed for profitable growth Scaling network with volume development and taking actions to reduce indirect costs Balance volume and value Enhance customer More efficient utilisation interaction and service of infrastructure offering • Actions to improve yield with aim to keep • Enhancing co
Slide 11: Structural growth of parcels market
Structural growth of parcels market Positive trend in e-commerce penetration is main contributor Retail spend E-commerce penetration Reflecting macroeconomic developments Continuing upward trend (constant 2021 prices, in € billion, products only, the Netherlands) (in %, of retail spend, the Netherla
Slide 12: Solid performance at Mail in the Netherlands
Solid performance at Mail in the Netherlands Successfully mitigating volume decline through a moderate pricing policy and cost savings initiatives Revenue Normalised EBIT* Volumes Q2 2022 €350m €13m 450m -7.4% Q2 2021 €389m €23m 486m * No Covid-19 impact in Q2 2022 versus €12m in Q2 2021 Volume • Ov
Slide 13: Mail in the Netherlands managed for value
Mail in the Netherlands managed for value Successfully delivering stable and predictable normalised EBIT and cash flow Mail market Increase relevance for Adapt organisation customers • Integration of Sandd fully completed in • (Re)discovery of direct mail by e- • Improved sorting and preparation 202
Slide 14: Delivering on our strategy
Delivering on our strategy Adaptive measures taken to mitigate external headwinds Challenging macroeconomic environment… • Ongoing inflationary pressure and impact on e-commerce volumes • Tight cost control and adaptive measures • Adjusting capex to align with volume projections and applying strict
Slide 15: Financial performance
Q2 2022 Financial performance 14
Slide 16: Normalised EBIT development Q2 2022
Normalised EBIT development Q2 2022 (in € million) Normalised EBIT Q2 2021 63 Q2 delta assumed non-recurring (27) €(14)m Parcels and €(12)m Mail in the Netherlands impact related to Covid-19 • €(28)m Parcels Business development (27) • €2m Mail in the Netherlands • €(1)m PostNL Other Normalised EBIT
Slide 17: Parcels Q2 2022 normalised EBIT bridge
Parcels Q2 2022 normalised EBIT bridge (in € million) Normalised EBIT Q2 2021 56 Parcels Netherlands 12.6% volume decline, due to fewer Covid-19 related items, Revenue - volume (50) expected decline in cross-border activities and additional pressure reflecting macroeconomic environment Revenue - pri
Slide 18: Mail in the Netherlands Q2 2022 normalised EBIT bridge
Mail in the Netherlands Q2 2022 normalised EBIT bridge (in € million) Normalised EBIT Q2 2021 23 Mail activities Revenue - volume (18) 7.4% volume decline, with improvement in substitution rate Revenue - price/mix (1) Moderate pricing policy offset by less favourable mix Organic costs (9) Inflationa
Slide 19: Cash flow
Cash flow (in € million) Q2 2021 Q2 2022 Normalised EBIT 63 10 Reversal normalisations 0 (1) Depreciation & amortisation 36 39 (26) (29) Accelerating digitalisation and expanding Capex capacity Lease payments and related cash flow (16) (17) Investments in working capital, partly phasing (5) (64) wit
Slide 20: €250m share buyback programme: first tranche completed
€250m share buyback programme: first tranche completed Interim dividend 2022 set at €0.14 per share Supporting dividend per share Execution • Neutralising assumed dilutive impact from dividends over 2021-23 • Execution first tranche completed on 25 May 2022 • first tranche to neutralise impact 2021-
Slide 21: Strong financial position
Strong financial position Solid balance sheet with positive consolidated equity; adjusted net debt at €494m Balance sheet (in € million) 2 July 2022 2 July 2022 Intangible fixed assets 371 Consolidated equity 185 Property, plant and equipment 433 Non-controlling interests 3 Right-of-use assets 281 T
Slide 22: 2022 outlook and guidance
Q2 2022 2022 outlook and guidance 21
Slide 23: Assumed organic cost development in FY 2022
Assumed organic cost development in FY 2022 Unprecedented inflation cannot be absorbed by regular price increases (in € million) Historic FY organic Mainly regular CLA increases and indexation for delivery partners, ~ 45 based on moderate inflation cost increase Actual impact CLA mail deliverers and
Slide 24: Revised 2022 outlook
Revised 2022 outlook Ongoing uncertainty, increased costs level and limited visibility on volume development FY 2022 assumptions (in € million) Revised 2022 Revised 2022 2021 Adjusted outlook outlook Revised : 2021* (9 May) (8 August) • Low single digit volume decline at Parcels *** (YTD: -16.3%) Ou
Slide 25: Quarterly split of normalised EBIT
Quarterly split of normalised EBIT Back to normal seasonal pattern in 2022, with uncertain economic outlook and reduced predictability Normalised EBIT not equally spread over the quarters Q3 2022 assumptions (indicative only, in € million) • Limited impact of Covid-19 • Further inflationary cost pre
Slide 26: Wrap-up
Q2 2022 Wrap-up 25
Slide 27: Delivering on our strategy
Delivering on our strategy Adaptive measures taken to mitigate external headwinds Challenging macroeconomic environment… • Ongoing inflationary pressure and impact on e-commerce volumes • Tight cost control and adaptive measures • Adjusting capex to align with volume projections and applying strict
Slide 28: Q&A Q2 2022 Results
Q&A Q2 2022 Results 27
Slide 29: Appendix
Appendix → Results by segment → Full reconciliation income statement and EBITDA → Free cash flow per segment for Q2 2022, HY 2022 bridge → Revenue mix Parcels → Assumed non-recurring impact related to Covid-19 → Result development (bridge) per segment HY 2022 → Profit and normalised comprehensive in
Slide 30: Results by segment Q2 2022 and HY 2022
Results by segment Q2 2022 and HY 2022 Revenue Normalised EBIT Margin (in € million) Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Parcels 589 519 56 14 9.5% 2.8% Mail in the Netherlands 389 350 23 13 5.9% 3.6% PostNL Other 50 54 (16) (17) Intercompany (191) (177) PostNL 838 746 63 10 7.5% 1.3% HY
Slide 31: Full reconciliation of income statement and EBITDA Q2 2022
Full reconciliation of income statement and EBITDA Q2 2022 Income statement PostNL Parcels Mail in NL PostNL Other Eliminations (in € million) Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Total operating revenue 838 746 589 519 389 350 50 54 (191) (177) Other incom
Slide 32: Full reconciliation of income statement and EBITDA HY 2022
Full reconciliation of income statement and EBITDA HY 2022 Income statement PostNL Parcels Mail in NL PostNL Other Eliminations (in € million) HY 2021 HY 2022 HY 2021 HY 2022 HY 2021 HY 2022 HY 2021 HY 2022 HY 2021 HY 2022 Total operating revenue 1,800 1,552 1,251 1,073 855 737 99 109 (405) (367) Ot
Slide 33: Free cash flow per segment Q2 2022
Free cash flow per segment Q2 2022 (in € million) PostNL Other & PostNL Parcels Mail in NL Eliminations Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 EBITDA 99 48 74 33 32 20 (7) (5) Change in pensions 18 19 0 - 0 - 18 19 Change in provisions 1 0 1 0 1 0 0 (0) Change in working cap
Slide 34: Cash flow HY
Cash flow HY (in € million) HY 2021 HY 2022 Normalised EBIT 193 43 Reversal normalisations 18 (4) Mainly related to book gain on sale of Cendris Q1 2021 Depreciation & amortisation 71 78 (49) (64) Investments in acceleration of digitalisation and Capex expansion of capacity Lease payments and relate
Slide 35: Revenue mix Parcels per quarter
Revenue mix Parcels per quarter (in € million) Q1 2021 Q1 2022 Q2 2021 Q2 2022 HY 2021 HY 2022 Parcels Netherlands 444 361 383 345 828 706 Spring 145 105 131 91 276 195 Logistics solutions and other 102 105 100 98 203 203 Eliminations (30) (17) (26) (15) (56) (32) Parcels 662 554 589 519 1,251 1,073
Slide 36: Assumed non-recurring impact related to Covid-19
Assumed non-recurring impact related to Covid-19 Volumes (around, in million) Q1 2021 Q1 2022 Q2 2021 Q2 2022 HY 2021 HY 2022 Parcels 26 2 11 0 37 2 Mail in the Netherlands 12 15 23 3 35 17 Revenue (around, in € million) Q1 2021 Q1 2022 Q2 2021 Q2 2022 HY 2021 HY 2022 Parcels 137 2 78 - 215 2 Mail i
Slide 37: Parcels HY 2022 normalised EBIT bridge
Parcels HY 2022 normalised EBIT bridge (in € million) Normalised EBIT HY 2021 148 Parcels Netherlands 16.3% volume decline, due to fewer Covid-19 related items, Revenue - volume (136) expected development in cross-border activities and additional pressure reflecting macroeconomic environment Revenue
Slide 38: Mail in the Netherlands HY 2022 normalised EBIT bridge
Mail in the Netherlands HY 2022 normalised EBIT bridge (in € million) Normalised EBIT HY 2021 82 Mail activities Revenue - volume (39) 7.4% volume decline Revenue - price/mix (10) Moderate pricing policy offset by less favourable mix Organic costs (14) Inflationary pressure mainly due to new CLA Vol
Slide 39: Profit and normalised comprehensive income PostNL
Profit and normalised comprehensive income* PostNL (around, in € million) Q1 2021 Q1 2022 Q2 2021 Q2 2022 HY 2021 HY 2022 Operating income / EBIT 148 30 63 9 211 38 Net financial expenses (5) (6) (4) (5) (10) (11) Results from investments in JVs/associates 0 0 (1) (0) (1) 0 Income taxes (31) (7) (15
Slide 40: Reconciliation of pension expense and cash contribution
Reconciliation of pension expense and cash contribution (in € million) PostNL Parcels Mail in NL PostNL Other Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Cash contribution* (24) (25) (7) (8) (12) (12) (4) (4) IFRS non-cash pension expense (18) (19) (0) (0) (0) - (18) (19) Total p