Slide 1: First quarter 2022 results Analyst call
First quarter 2022 results Analyst call Dirk Tirez, CEO Koen Aelterman, CFO a.i. May 5th, 2022
Slide 2: Investor presentation 1Q22 Disclaimer and financial calendar
Investor presentation 1Q22 Interim financial report 1Q22 Financial Calendar Disclaimer 11.05.2022 This presentation is based on information published by bpost group in its First Quarter 2022 Interim Financial Report, made available on May 5th, 2022 at 5.45pm CET on bpostgroup.com/investors. This inf
Slide 3: Negative evolution of macro-economic environment in 1Q22
Negative evolution of macro-economic environment in 1Q22 Macro-economic Inflation has further accelerated Consumer confidence Decline in online retail sales in 1Q22 in Europe significantly dropped in Europe Jan-22 Feb-22 Mar-22 7,4% Jan-22 Feb-22 Mar-22 8,3% 8,5% 1 -5% -2 -8% -9 -9 -10% 1,3% 2,6% -1
Slide 4: Highlights of 1Q22
Highlights of 1Q22 1Q22 Start of the year in line with guidance. Results supported by strong mail revenues and growth at Radial NA, partly mitigating unfavorable macro-economic environment Group operating Belgium E-Logistics Eurasia E-Logistics N. Am. income € 1,038.5m € 75.1m € 10.5m € 15.2m up 1,8
Slide 5: Key financials 1Q22
Key financials 1Q22 1Q22 € million Reported Adjusted1 1Q21 1Q22 1Q21 1Q22 %↑ 1 Amortization and impairments of intangibles recognized Total operating income 1,019.9 1,038.5 1,019.9 1,038.5 1.8% during PPA are adjusted, Operating expenses 842.7 878.1 842.7 878.1 4.2% leading to increase in EBITDA 177
Slide 6: Mail revenue supported by price increase, retail and VAS counterbalance pressure on parcels
Mail revenue supported by price increase, retail and VAS 1Q22 – Belgium counterbalance current pressure on parcels Belgium external operating income, € million Domestic Mail Parcels Belgium -15% Operating income up € +4.5m: Total Parcels Belgium revenue down € -14.3m (-11.9%): 1Q21 567.3 • € -14.6m
Slide 7: EBIT driven by lower parcel volumes and inflationary impacts on payroll and energy costs
EBIT driven by lower parcel volumes and inflationary impacts 1Q22 – Belgium on payroll and energy costs € million Belgium External operating income 1Q21 567.3 1Q22 556.6 %↑ -1.9% Key takeaways 1Q22 Transactional 190.2 194.7 2.4% • Total operating income down € -15.7m (-2.7%) Advertising 47.6 48.0 0.
Slide 8: Growth in Radial and Active Ants offset by Dynagroup while Asian volumes remain under pressure
Growth in Radial and Active Ants offset by Dynagroup while 1Q22 – E-Log. Eurasia Asian volumes remain under pressure following new VAT regulation E-Logistics Eurasia external operating income, € million E-commerce logistics Cross-border Revenue down € -3.2m (-4.6%): Revenue down € -21.6m (-22.7%) 1Q
Slide 9: EBIT impacted by lower cross-border and personalized logistics volumes, higher payroll costs
EBIT impacted by lower cross-border and personalized 1Q22 – E-Log. Eurasia logistics volumes, higher payroll costs € million E-Logistics Eurasia External operating income 1Q21 163.5 1Q22 138.7 %↑ -15.2% Key takeaways 1Q22 E-commerce logistics 68.4 65.2 -4.6% • Total operating income down € -26.2m (-
Slide 10: Continued strong revenue development driven by Radial's new customers launched in 2021
Continued strong revenue development driven by Radial’s 1Q22 – E-Log. N. Am. new customers launched in 2021 E-Logistics N. America external operating income, € million E-commerce logistics Radial NA revenues YoY increase of +30.0% (+21.2% at in perspective 1Q21 281.1 constant exchange rate). +24% Re
Slide 11: Almost doubled EBIT driven by strong performance across the board
Almost doubled EBIT driven by strong performance 1Q22 – E-Log. N. Am. across the board € million E-Logistics North America External operating income 1Q21 281.1 1Q22 342.4 %↑ 21.8% Key takeaways 1Q22 E-commerce logistics 263.5 342.4 30.0% • Total operating income up € +61.4m or +21.8% (+13.5% at cons
Slide 12: Corporate EBIT decline driven by lower building sales
Corporate EBIT decline driven by lower building sales 1Q22 – Corporate € million Corporate External operating income 1Q21 7.9 1Q22 0.8 %↑ -90.1% Key takeaways 1Q22 Intersegment operating income 102.6 100.2 -2.3% • External revenues lower than last year by €-7.1m, from lower Total operating income 11
Slide 13: Stable Cash Flow from Operating activities supported by active portfolio management
Stable Cash Flow from Operating activities supported by active 1Q22 portfolio management € million ‐ Adjusted Reported 1Q21 1Q22 Delta Cash flow from operating activities before Δ in WC and provisions 165.1 177.9 12.8 1 Change in working capital and provisions 4.6 -4.4 -8.9 2 Cash flow from operatin
Slide 14: Despite a first quarter in line with expectations, recent market disruptions bring potential risk
Despite a first quarter in line with expectations, recent market Outlook FY22 disruptions bring potential risk of up to € 40m to the guidance Feb 24 guidance Current perspective Q1 financial performance was in line with the full year 2022 EBIT • Feb. ‘22 inflation forecast: guidance of € 280-310m is
Slide 15: Inflationary pressure on Belgian payroll costs: additional indexations in June and Dec. '22
Inflationary pressure on Belgian payroll costs: additional Outlook FY22 indexations in June and Dec. ‘22 vs guidance with € ~17m impact Belgian salary indexations Federal Planning Bureau Inflation forecasts Salary indexation threshold Actuals and latest forecast • Under the Belgian social security s
Slide 16: Management is taking actions at all levels to face and mitigate unfavorable impacts on EBIT
Management is taking actions at all levels to face and mitigate Outlook FY22 unfavorable impacts on EBIT Belgium E-Logistics E-Logistics Group Eurasia North America • Parcels commercial plan to • Increased sales efforts at • Additional productivity actions in • In-depth review of project counter vol
Slide 17: Regardless of the macro-economic shocks management continues to execute on 2022 priorities
Regardless of the macro-economic shocks Management management continues to execute on 2022 priorities Improve operational efficiency within Belgian organization and Build Accelerate growth of initiate transformation into long- E-Logistics Eurasia E-Logistics North America term sustainable business C
Slide 18: Additional info
Additional info
Slide 19: Adjusted vs. reported Cash Flow Statement
Adjusted vs. reported Cash Flow Statement 1Q22 € million Adjusted Reported 1Q21 1Q22 Delta 1Q21 1Q22 Delta Cash flow from operating activities before Δ in WC and provisions 165.1 177.9 12.8 165.1 177.9 12.8 Change in working capital and provisions 4.6 -4.4 -8.9 -8.0 -5.6 2.4 1 Cash flow from operati
Slide 20: Balance Sheet
Balance Sheet 1Q22 € million € million Assets Dec 31, 2021 Mar 31, 2022 Equity and Liabilities Dec 31, 2021 Mar 31, 2022 PPE 1,263.5 1,326.2 Total equity 885.3 962.6 Intangible assets 797.0 801.7 Interest-bearing loans & borrowings 1,377.7 1,448.2 Investments in associates and joint ventures 0.0 0.0
Slide 21: Financing Structure & Liquidity
Financing Structure & Liquidity 1Q22 € million € million Available Liquidity Dec 31, 2021 Mar 31, 2022 External Funding Dec 31, 2021 Mar 31, 2022 Ca sh & c a sh eq uiva lents 9 0 7.5 1,16 6 .7 L o ng -ter m Cash in network 149.9 152.9 Long-term bond1 (1.25% - 07/2026) 650.0 650.0 Transit accounts 44
Slide 22: 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 22 1Q22 Analyst Presentation