Ctt - Correios De Portugal Sa · EURONEXT:CTT
Ctt - Correios De Portugal Sa — CTT - Correios de Portugal — Non-Deal Roadshow (March 2025)
31 slides from Ctt - Correios De Portugal Sa's roadshow presentation, March 2025
Slide 1: Commitment with Purpose
Commitment with Purpose
Slide 2: Disclaimer
Disclaimer DISCLAIMER FORWARD-LOOKING STATEMENTS This document has been prepared by CTT – Correios de Portugal, S.A. (the “Company” or “CTT”) exclusively for This presentation contains forward-looking statements. All the statements herein which are not historical use during Spring roadshow investor
Slide 3: A leading e-commerce logistics player, delivering parcels to the whole of Iberia
A leading e-commerce logistics player, delivering parcels to the whole of Iberia CTT IN A NUTSHELL Originally a postal operator, CTT successfully evolved to become a comprehensive Iberian e-commerce logistics player 8% 5-year CAGR • Founded in 1520 • Publicly listed in 2013 • €1,016m market cap1 • C
Slide 4: A balanced and highly synergic portfolio
A balanced and highly synergic portfolio CTT IN A NUTSHELL B2B / logistics B2C / retail 43% 12% Fastest growing retail bank Growth focus Iberian e-commerce growth engine franchise \ in Portugal Express & Banco Parcels Growing towards another record year CTT Continue to grow driven by higher engageme
Slide 5: E&P is the key driver of topline growth and margin expansion
E&P is the key driver of topline growth and margin expansion EXPRESS & PARCELS E&P volumes Revenues Recurring EBIT million objects; LTM € million € million 21% 26% 30% 29% 35% 43% -15% 0% 21% 13% 23% 42% 142 +8.4% 1,107 985 101 907 +5.4% 848 88 85 740 745 66 74 72 65 60 53 41 38 +25.7% 479 ∅+9.2 341
Slide 6: E-commerce flows are primarily international and cross-border
E-commerce flows are primarily international and cross-border EXPRESS & PARCELS | MARKET OPPORTUNITY ~8.2bn orders annually Europe (inc. Rusia and Turkey On top of Asia to Europe (19% of total) North America 17% 2% APAC 4% (inc. India Intra-Europe is one of 5% the largest flows (17%) <1% 1% Middle 1
Slide 7: New cross border opportunity to be a key growth driver
New cross border opportunity to be a key growth driver EXPRESS & PARCELS | MARKET OPPORTUNITY E-commerce volumes in Europe E-commerce as % of total retail sales Cross border as % of total e-commerce Revenues; € billions +6pp +15pp +9% CAGR +4pp +7pp 930 11 8 71 42 +12% 35 56 602 539 4 5 2023 2024 20
Slide 8: Iberian e-commerce is a sizeable market with high growth potential
Iberian e-commerce is a sizeable market with high growth potential EXPRESS & PARCELS Iberia is the 4th largest e-commerce market in Europe1 … but e-commerce2 penetration is still low, 2023 e-commerce share of total retail, % Portugal 7.5 3.0x € billion Romania 9.3 22.5 147.8 Italy 10.0 average of to
Slide 9: Comprehensive Iberian coverage in Express & Parcels
Comprehensive Iberian coverage in Express & Parcels EXPRESS & PARCELS 100% D+1 full geographical coverage in Iberia >140M 50% items per year (FY24) Spanish customers choose a single operator in Iberia >565k 150k items daily (FY24) 24 Automatic sorting capacity (k sorts/hour; FY24) 73 >20k PUDOs Dist
Slide 10: Continued volume growth in E&P Iberia
Continued volume growth in E&P Iberia EXPRESS & PARCELS | OPERATIONAL RESULTS E&P Iberia | CEP Volumes High quality and efficiency million items; % change vs. prior year • Maintain a quality service with high delivery efficiency +39% +41% rates despite an increase in daily volumes y.o.y in y.o.y in
Slide 11: Growth is driving scale and margin expansion
Growth is driving scale and margin expansion EXPRESS & PARCELS E&P | Revenues E&P | Recurring EBIT € million; % change y.o.y. € million; % change y.o.y. 7.5% 5.8% +40.6% +41% 479.0 3.3% +82.9% 36.1 100% 340.6 122 12% 138 -88% 16 +16.4 259.0 ∆ ∆ Costs ∆ rec. 19.7 Revenues EBIT 8.5 FY22 FY23 FY24 FY22
Slide 12: Excellent organic growth legitimises non-organic acceleration
Excellent organic growth legitimises non-organic acceleration EXPRESS & PARCELS | RECENT TRANSACTIONS Accelerate to leadership in Iberian e-commerce, expanding offer and strengthening customer relationships Diversify risk: new segments (B2B) and wider presence in the value chain (customs clearance)
Slide 13: Partnership structure to maximise focus on execution
Partnership structure to maximise focus on execution EXPRESS & PARCELS | PARTNERSHIP WITH DHL Structure ▪ Acquisition of 100% of DHL Parcel Portugal by CTT Expresso ▪ Acquisition of 25% indirect stake in DHL Parcel Iberia by CTT, through its sole shareholder Danzas CTT DHL ▪ Acquisition of 25% of CT
Slide 14: Iberian JV fully equipped to provide exceptional quality service
Iberian JV fully equipped1 to provide exceptional quality service EXPRESS & PARCELS | PARTNERSHIP WITH DHL Strong brand recognition in ~200m parcels delivered >1m shipments of daily >3,300 employees Portugal and Spain yearly processing capacity ~23,000 PUDOs ~1,100 Lockers 29 hubs 330 depots (10,000
Slide 15: Growth optionality: Cacesa
Growth optionality: Cacesa EXPRESS & PARCELS | ACQUISITION OF CACESA Cacesa at a glance Fully aligned with CTT’s strategic roadmap 160m €104m €104m € Increases CTT’s presence in cross-border e-commerce flows shipments revenues2 EV3 >€5m incremental run-rate synergies at Strengthens CTT’s foothold in
Slide 16: Strong and solid exposure to Spain, while providing further optionality
Strong and solid exposure to Spain, while providing further optionality EXPRESS & PARCELS | ACQUISITION OF CACESA Well-established in Customs in Bridging Europe and China Spain and Italy • China to Europe represents 19% of global cross-border e- commerce orders +15 • Cacesa connects Europe and China
Slide 17: Cacesa's acquisition and partnership with DHL are complementary
Cacesa’s acquisition and partnership with DHL are complementary EXPRESS & PARCELS % of total trade 2% 19% US to Europe 17% Asia to Europe CTT’s strong foothold on cross-border DHL differentiated characteristics to enhance e-commerce to be further reinforced by CTT’s presence in these flows in Iberia
Slide 18: Continued focus on strengthening portfolio in e-commerce logistics
Continued focus on strengthening portfolio in e-commerce logistics EXPRESS & PARCELS 2024 review 2025 priorities PUDOs and lockers Accelerate the collectt Standardisation >20,000 PUDOs Inorganic growth network of Iberian offer • Standardisation of • Launch of Iberian • Acquisition of Cacesa to Syner
Slide 19: Banco CTT: our second growth area
Banco CTT: our second growth area BANCO CTT CTT’s Brand Awareness CTT’s Retail Network % of population know very well know some what 569 branches spread across the country 99 99 100 100 100 100 212 of which with Banco CTT branches All 308 municipalities with a CTT store 86 83 85 84 83 85 65k unique
Slide 20: Banco CTT is the fastest growing banking franchise in Portugal
Banco CTT is the fastest growing banking franchise in Portugal BANCO CTT 681 Aug’20: 500,000 647 accounts, close to 2 Bn€ total assets 602 573 789k clients Oct’18: Introduction of 517 off-balance sheet saving 461 Sep’23: Scaling up for products profitable and sustainable May’19: growth Jan’17: 202 b
Slide 21: Focused on client growth and doubling-down efforts on engagement
Focused on client growth and doubling-down efforts on engagement BANCO CTT Client growth • 8 years / >780,000 clients • Strong net addition of x Client engagement • Converge client engagement towards incumbents’ levels x NII expansion • Managing the monetary context = Sustainable PBT growth • Higher
Slide 22: A clear strategy that rendered a proven business model
A clear strategy… that rendered a proven business model… BANCO CTT Operating data Operating Income1,2 and Net Income1 of Banco CTT 2024 € million 2024 121 20 Develop a sizable and high potential 681k current accounts 2023 120 17 retail client base 68 2022 110 15 2021 101 16 Leverage on CTT’s traditi
Slide 23: Banco CTT continues to capture market share
Banco CTT continues to capture market share BANCO CTT Customer deposits1 Loans volumes2,3 € million, EoP € million, EoP +30.8% Banco CTT is gaining market share +9.0% 4,044 (Portuguese deposits5 grew 7.2%) 938 860 Yield4 Auto 6.4% Improving client engagement by: 3,091 Dec-23 Dec-24 • Revamping Banco
Slide 24: Record RoTE in Banco CTT, reaching CMD22 targets for 2025
Record RoTE in Banco CTT, reaching CMD22 targets for 2025 Bank Revenues Profit before Taxes3 € million; % change vs. prior year € million; % change vs. prior year NIM1 RoTE2 2.9% 2.6% 2.2% 9.0% 13.0% +11.8% 128.5 129.9 +2.6 -0.4 -12.3 +11.5 116.2 +25.9% 26.4 21.0 FY23 Universo FY23 ∆ ∆ ∆ Other FY24
Slide 25: In a nutshell: a balanced and highly synergic portfolio
In a nutshell: a balanced and highly synergic portfolio CONSOLIDATED VIEW Revenues € million; % change vs prior year; % weight Iberian e-commerce growth engine +12% Growing towards another record year 1,107 +9% 985 907 Leveraging new USO contract 479 341 +41% E&P +31% 43% Stabilising revenues given
Slide 26: Capital allocation priorities
Capital allocation priorities OUTLOOK AND CAPITAL ALLOCATION 1. Investment in business growth Organic growth: transformation, technology, capacity and Inorganic growth: M&A opportunities in e-commerce logistics maintenance capex related assets 2. Attractive shareholder remuneration Recurrent dividen
Slide 27: Strong cash-flow generation underpinning balance sheet flexibility
Strong cash-flow generation underpinning balance sheet flexibility FINANCIAL REVIEW FY24 Cash flow EBITDA and leverage € million; with Banco CTT under equity method € million; with Banco CTT under equity method OCF FCF Net debt EBITDA OCF grew notwithstanding lower ND/EBITDA ceiling2 2.5 revenues fr
Slide 28: To support our growth, we will continue to invest in our business
To support our growth, we will continue to invest in our business CAPEX Annual average Capex Key areas of investment € million Increasing sorting capacity across Iberia +16% 40-45 Developing lockers network in Portugal 37 and initiating expansion to Spain Transformational 50% 80% Investing in IT to
Slide 29: Guiding growing revenues and EBIT
Guiding growing revenues and EBIT GUIDANCE Revenues Targets disclosed at the 2022 Recurring EBIT € million; % change y.o.y. Capital Markets Day € million; % change y.o.y. >17% 13% >100 organic 12% 1,100 ... 1,250 36% -3% 9% 1,107 7% 28 88 14% 985 85 907 63 7% 848 45% 14 61 471 65 745 49 60 36 44 434
Slide 30: Solid outlook
Solid outlook FS as a profitability enhancer Well positioned e-commerce logistics Normalised debt placements and new player in Iberia services Achieved 2024 guidance … and 2025 revenue target issued in the Market share expansion based on CMD22 (€1.1-1.25bn) commercial proactivity, quality and servic
Slide 31: Commitment with Purpose
Commitment with Purpose Investor Relations Phone: +351 210 471 087 E-mail: investors@ctt.pt ctt.pt
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