Postnl Nv · EURONEXT:PNL
Postnl Nv — Q3 2020 Earnings Presentation
27 slides from Postnl Nv's earnings presentation, Nov 2, 2020
Slide 1: Q3 2020 Results
Q3 2020 Results The Hague, 2 November 2020
Slide 2: Published by PostNL NV; forward-looking statements and non-GAAP information
Published by: PostNL NV Prinses Beatrixlaan 23 2595 AK The Hague The Netherlands Additional information Additional information is available at www.postnl.nl. Elements of this press release contain or may contain inside information within the meaning of article 7(1) of the EU Market Abuse Regulation.
Slide 3: Q3 2020 Results
Q3 2020 Results Key takeaways Business review Financial review & outlook Q&A 3
Slide 4: Our mail and parcel deliverers provide a vital service to society
Our mail and parcel deliverers provide a vital service to society Health and safety for our people and consumers come first • Proud of our people • Comprehensive set of measures taken across our business to ensure and safeguard health and safety of our people, customers and consumers • Sick leave le
Slide 5: Key financials and highlights Q3 2020
Key financials and highlights Q3 2020 Ongoing strong business performance and improved financial position Revenue Normalised EBIT Free cash flow Outlook normalised EBIT FY 2020 Q3 2020 €742m €36m €5m >€175m Q3 2019 €636m €26m €40m Highlights Q3 2020 • Strong performance at Parcels continued • Realis
Slide 6: Growing importance of digitalisation
Growing importance of digitalisation Further acceleration to strengthen competitive position, contribute to customer satisfaction, reducing cost base and attracting new customers YTD 2019 YTD 2020 online visitors 306m (47% via PostNL app) 419m (59% via PostNL app) +37% PostNL accounts 5.0m 5.8m +16%
Slide 7: Business review
Q3 2020 Results Key takeaways Business review Financial review & outlook Q&A 7
Slide 8: Parcels: strong performance continued
Parcels: strong performance continued Revenue Normalised EBIT Volume growth Revenue mix Spring Parcels Benelux Q3 2020 €490m €49m 16.8% Logistics & other Q3 2020 €490m (YTD: 15.0% ) Q3 2019 €401m €27m (YTD volume: 232m) Strong revenue growth Result Parcels up €22m driven by revenue growth • Benefiti
Slide 9: Parcels: Normalised EBIT up to €49m (from €27m)
Parcels: Normalised EBIT up to €49m (from €27m) (in € million) Normalised EBIT Q3 2019 27 Parcels Benelux Revenue - volume 48 16.8% volume growth in Q3 2020 Revenue - price/mix 5 Yield measures supported by positive mix effects Organic costs (5) CLA increase, indexation subcontractors and impact of
Slide 10: Mail in the Netherlands: mail volume decline slowed compared to Q2
Mail in the Netherlands: mail volume decline slowed compared to Q2 Revenue Normalised EBIT Net contribution of Sandd Addressed mail in normalised EBIT volume decline Q3 2020 €379m €4m €8m 10.4% (YTD: 13.2%)* Q3 2019 €342m €4m Revenue development Performance marked by additional volume decline, price
Slide 11: Mail in the Netherlands: normalised EBIT in line with Q3 2019
Mail in the Netherlands: normalised EBIT in line with Q3 2019 (in € million) Normalised EBIT Q3 2019 4 Mail activities Volume decline 10.4%*, revenue includes €33m related to Sandd Revenue - volume 17 consolidation Moderate pricing policy supported by favourable development Revenue - price/mix 9 pri
Slide 12: Financial review & outlook
Q3 2020 Results Key takeaways Business review Financial review & outlook Q&A 12
Slide 13: Generation of free cash flow in Q3 2020
Generation of free cash flow in Q3 2020 Underlying working capital development remains strong (in € million) Q3 2019 Q3 2020 Comment Normalised EBIT 26 36 Reversal normalisations (3) (0) Depreciation & amortisation 36 36 Capex (13) (17) Lease payments (14) (16) Timing effects in line with expectatio
Slide 14: Pension developments
Pension developments Coverage ratio (12-month average) pension fund at 105.2% as at 30 September 2020 YTD (in € million) 2019 YE 2020 2020 Positive outcome discussion pension fund Provision for pension liabilities 283 283 • Expected cash-out for final payment transitional plans capped at around €290
Slide 15: Consolidated statement of financial position
Consolidated statement of financial position Adjusted net debt position end of Q3 2020: €618m (in € million) 26 Sep 2020 26 Sep 2020 Intangible fixed assets 353 Consolidated equity 57 Property, plant and equipment 396 Non-controlling interests 2 Right-of-use assets 229 Total equity 59 Other non-curr
Slide 16: Generation of free cash flow YTD 2020
Generation of free cash flow YTD 2020 Exceptional items in Q4: payment of ˜€205m for transitional plans and proceeds of €150m sale-and-leaseback transaction (in € million) YTD 2019 YTD 2020 Normalised EBIT 95 105 Reversal normalisations (13) (17) Depreciation & amortisation 107 125 Increase mainly r
Slide 17: Outlook for 2020
Outlook for 2020 Initial outlook FY 2020 Outlook FY 2020 Outlook FY 2020 trading update (in € million) (24 Feb 2020) (3 August 2020) (6 October 2020) Normalised EBIT 110 – 130 strongly above 110 – 130 > 175 strong improvement Free cash flow * (315) – (285) additional positive impact compared to (215
Slide 18: Attention points development normalised EBIT for Q4 2020
Attention points development normalised EBIT for Q4 2020 Parcels Volume development 2020 • Volume growth expected to slow somewhat compared with Q3 15.0% YTD (16.8%) • Better price/mix expected • Expected peak volume of 1.5m per day (annual average: 0.9m per day) • Impact peak season costs • Adjuste
Slide 19: Key takeaways Q3 2020
Key takeaways Q3 2020 • Ongoing strong performance and improving financial position • FY outlook for normalised EBIT: > €175m • Normalised EBIT €36m in Q3 2020 (Q3 2019: €26m); includes €(7)m for the extra payment to our people and €(9) million, as indicated before, from new labour regulation and hi
Slide 20: Q&A
Q3 2020 Results Key takeaways Business review Financial review & outlook Q&A 20
Slide 21: Appendix
Q3 2020 Results Appendix • Results by segments Q3 2020 and YTD 2020 • Result development per segment YTD 2020 • Breakdown of pension cash contribution and expenses • Adjusted net debt 21
Slide 22: Results by segment Q3 2020
Results by segment Q3 2020 (in € million) Revenue Normalised EBIT Q3 2019 Q3 2020 Q3 2019 Q3 2020 Parcels 401 490 27 49 Mail in the Netherlands 342 379 4 4 PostNL Other 19 25 (5) (17) Intercompany (126) (151) PostNL 636 742 26 36 • Normalised EBIT in Q3 2020 includes €(7)m for the extra payment to p
Slide 23: Results by segment YTD 2020
Results by segment YTD 2020 (in € million) Revenue Normalised EBIT YTD 2019 YTD 2020 YTD 2019 YTD 2020 Parcels 1,201 1,420 79 134 Mail in the Netherlands 1,114 1,166 37 14 PostNL Other 59 76 (21) (43) Intercompany (373) (430) PostNL 2,001 2,232 95 105 • Normalised EBIT in YTD 2020 includes €(7)m for
Slide 24: Parcels: normalised EBIT up €55 million, impacted by Covid-19
Parcels: normalised EBIT up €55 million, impacted by Covid-19 (in € million) Normalised EBIT YTD 2019 79 Parcels Benelux Revenue - volume 126 15% volume growth YTD 2020 Revenue - price/mix 20 Yield measures supported by positive mix effects CLA increase, indexation subcontractors and impact of new l
Slide 25: Mail in the Netherlands: normalised EBIT development impacted by Covid-19
Mail in the Netherlands: normalised EBIT development impacted by Covid-19 (in € million) Normalised EBIT YTD 2019 37 Mail activities YTD volume decline 13.2%*, revenue includes €104m related to Revenue - volume 34 consolidation Moderate pricing policy supported by favourable development Revenue - pr
Slide 26: Breakdown of pension cash contribution and expenses
Breakdown of pension cash contribution and expenses (in € million) Q3 2019 Q3 2020 Expenses Cash Expenses Cash Business segments 25 30 23 26 IFRS difference 5 13 PostNL 30 30 36 26 Interest 1 0 Total 31 38 26
Slide 27: Adjusted net debt
Adjusted net debt (in € million) 31 Dec 2019 26 Sep 2020 Short- and long-term debt 696 702 Long-term interest-bearing assets (6) (12) Cash and cash equivalents (480) (569) Net debt 210 121 Pension liabilities 283 283 Lease liabilities (on balance) 264 238 Lease liabilities (off balance) 51 49 Deferr