United Parcel Service, Inc. · NYSE:UPS
United Parcel Service — Q1 2022 Earnings Presentation
28 slides from United Parcel Service's earnings presentation, Apr 26, 2022
Slide 1: 1Q22 Earnings Call
1Q22 Earnings Call April 26, 2022 © 2022 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 1
Slide 2: Ken Cook, Investor Relations Officer
Ken Cook Investor Relations Officer 2
Slide 3: Speakers
UPS Speakers Carol B. Tomé Chief Executive Officer Brian Newman Chief Financial Officer © 2021 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 3
Slide 4: Forward-Looking Statements and Non-GAAP Reconciliations
Forward-Looking Statements and Non-GAAP Reconciliations Forward-Looking Statements This presentation and our filings with the Securities and Exchange Commission contain and work stoppages or slowdowns by our employees; results of negotiations and ratifications of in the future may contain “forward-l
Slide 5: Diluted EPS
Diluted EPS 1Q22 1Q21 $6.00 $6.00 $5.47 ($2.86) $5.00 $5.00 $4.00 $4.00 ($0.03) $0.05 $3.03 $3.05* $3.00 $3.00 $0.16 $2.77* $2.00 $2.00 $1.00 $1.00 $0.00 $0.00 1Q22 EPS Pension Transformation & 1Q22 Adj. EPS* 1Q21 EPS Pension Transformation & 1Q21 Adj. EPS* Adjustments Other Adjustments Other * Non-
Slide 6: Carol B. Tomé, Chief Executive Officer
Carol B. Tomé Chief Executive Officer 6
Slide 7: Our World, By Delivering, You, UPSers
OUR WORLD BY DELIVERING YOU UPSers
Slide 8: Consolidated Results
Consolidated Results GAAP Adjusted In $ Millions In $ Millions 1Q22 1Q21 Change 1Q22 1Q21 Change (except per share) (except per share) Total Revenue $24,378 $22,908 6.4% Total Revenue $24,378 $22,908 6.4% Operating Profit $3,251 $2,765 17.6% Operating Profit* $3,306 $2,949 12.1% Operating Margin 13.
Slide 9: Customer First, People Led, Innovation Driven
Customer First, People Led, Innovation Driven • Significant enhancements to the onboarding experience for SMBs • Expanded Digital Access Program; now available in 27 Customer countries around the world First Net Promoter • Network agility enabled us to continue delivering high Score service levels d
Slide 10: Reaffirming 2022 Financial Goals
Reaffirming 2022 Financial Goals • Consolidated revenue ~$102 billion • Consolidated adjusted operating margin* ~13.7% • Return on invested capital* above 30% • Raising targeted share repurchases to $2B in 2022 * Non-GAAP financial measure. See Appendix for reconciliation to GAAP financial measure.
Slide 11: Brian Newman, Chief Financial Officer
Brian Newman Chief Financial Officer 11
Slide 12: Consolidated Results
Consolidated Results GAAP Adjusted In $ Millions In $ Millions 1Q22 1Q21 Change 1Q22 1Q21 Change (except per share) (except per share) Total Revenue $24,378 $22,908 6.4% Total Revenue $24,378 $22,908 6.4% Operating Profit $3,251 $2,765 17.6% Operating Profit* $3,306 $2,949 12.1% Operating Margin 13.
Slide 13: U.S. Domestic: Average Daily Volume Declined 3.0%
U.S. Domestic Average Daily Volume Declined 3.0% B2B average daily volume increased 3.6%, with growth from all segments 1Q22 U.S. ADV Change (Y/Y) Monthly B2C ADV (Y/Y) • B2C declined 7.4% 80% • Split was 57% B2C -3.0% vs. Last Year 40% -67 -4 -540 20,000 0% 19,741 In Thousands -40% Jan Feb Mar Apr
Slide 14: U.S. Domestic: 1Q Revenue Increased 8.0% to $15.1B
U.S. Domestic 1Q Revenue Increased 8.0% to $15.1B Driven by 9.5% increase in revenue per piece U.S. Revenue Change (Y/Y) U.S. Revenue Per Piece $12.50 +8.0% vs. Last Year $11.50 $16.0 $15.0 $10.50 +$1.3B $15.1B 1Q21 2Q21 3Q21 4Q21 1Q22 In Billions $14.0 -$205M 1Q revenue per piece growth of 9.5% $
Slide 15: U.S. Domestic: Operating Profit and Margin Increased YoY
U.S. Domestic 1Q Operating Profit and Margin Increased YoY Driven by our focus on revenue quality and the agility of our network Operating Profit (In Millions) Adjusted operating expense* grew 6.9% with GAAP $303 $1,662 total payroll and benefits driving 390 basis points $1,359 of the increase, an
Slide 16: International: 1Q Total Average Daily Volume Down 6.7%
International 1Q Total Average Daily Volume Down 6.7%; Up 16.4% on a 2-year Stack Export ADV down 2.9%; Domestic ADV Down 10.1% Asia Monthly ADV (Y/Y) Europe Monthly ADV (Y/Y) 35% 70% 25% 40% 15% 10% 5% -5% -20% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -15% Jan Feb Mar Apr May Jun Jul Aug Sep
Slide 17: International: Increased Operating Profit to $1.1B
International Increased Operating Profit to $1.1B in a Challenging Global Market Adjusted the network and shifted capacity to serve our customers globally Operating Profit (In Millions) +$31 GAAP $1,116 Revenue per piece increased 10.5% o Included 710 basis point benefit $1,085 from fuel, 680 basi
Slide 18: Supply Chain Solutions: Delivered Strong Results
Supply Chain Solutions Delivered Strong Results in a Dynamic Environment Operating Profit (In Millions) Forwarding revenue increased 25.0% and +$152 $473 operating profit more than doubled GAAP $321 Healthcare business delivered record results, 1Q21 Operating Profit Performance 1Q22 Operating Pr
Slide 19: Cash Flow and Dividends
Cash Flow and Dividends 1Q22 Cash From Operations of $4.5B 1Q22 Free Cash Flow* of $3.9B $16.0 $12.0 $14.0 $10.0 $12.0 $10.0 $8.0 In Billions In Billions $8.0 $6.0 $6.0 $4.0 $4.0 $2.0 $2.0 $0.0 $0.0 1Q YTD 2Q YTD 3Q YTD 4Q YTD 1Q YTD 2Q YTD 3Q YTD 4Q YTD CFO 2021 CFO 2022 FCF* 2021 FCF* 2022 * Non-G
Slide 20: Reaffirming Full-Year 2022 Financial Targets
Reaffirming Full-Year 2022 Financial Targets Doubling Share Repurchase Target to $2B Full-year 2022 Outlook Consolidated: Revenue around $102B Expect macro environment to remain dynamic Adjusted operating margin* about 13.7% with global GDP growing 3.2% Adjusted Return on Invested Capital*
Slide 21: Questions & Answers
Questions & Answers © 2022 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 21
Slide 22: Appendix
Appendix 22 © 2022 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
Slide 23: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Non-GAAP Financial Measures; Reconciliations Pension and Postretirement Adjustments From time to time we supplement the reporting of our financial information determined under generally We recognize changes in the fair value of plan assets and n
Slide 24: Reconciliations
Reconciliations © 2022 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
Slide 25: Reconciliations
Reconciliations © 2022 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
Slide 26: Reconciliations
Reconciliations © 2022 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
Slide 27: Reconciliations
Reconciliations © 2022 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
Slide 28: Reconciliations
Reconciliations © 2022 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
United Parcel Service — Q1 2022 Earnings Presentation on 6ix