Slide 1: Second quarter 2020 results Analyst call
Second quarter 2020 results Analyst call Jean-Paul Van Avermaet, CEO Leen Geirnaerdt, CFO 5 August 2020
Slide 2: Disclaimer and financial calendar
Investor presentation 2Q20 Interim financial report 2Q20 Financial Calendar Disclaimer 03.11.2020 (17:45 CET) This presentation is based on information published by bpost Group in its Second Quarter 2020 Interim Financial Report, made available on August, 4th 2020 at 5.45pm CET on corporate.bpost.be
Slide 3: Highlights of 2Q20
Highlights of 2Q20 2Q20 Net negative impact of COVID-19, mainly in M&R, is compensated by growth in Parcels and E-commerce logistics next to targeted cost containment actions and cost phasing towards 2H20 2Q20 COVID- Group operating Mail & Retail Parcels & Logistics Parcels & Logistics 19 impact1 on
Slide 4: Net negative COVID-19 impact compensated by growth in PaLo's
Net negative COVID-19 impact, mainly in M&R, is compensated by growth in 2Q20 PaLo’s next to targeted cost containment actions and cost phasing towards 2H20 € million 107.5 5,7 -32.6 -38.8 18,1 -20.7 74.9 8,8 4,7 € -0.8m excluding 101.8 2Q19 € 19.9m gain on HQ disposal 70.2 Adjusted1 Reported EBIT M
Slide 5: Key financials 2Q20
Key financials 2Q20 2Q20 € million Reported Adjusted1 1 Amortization of intangibles recognized 2Q19 2Q20 2Q19 2Q20 %↑ during PPA is adjusted, leading to increase in EBIT (€ +4.7m) and income Total operating income 935.7 1,052.7 935.7 1,052.7 12.5% tax expense (€ +0.3m) Operating expenses 773.9 917.0
Slide 6: Results by segment 2Q20
Results by segment 2Q20 2Q20 € million M&R PaLo Eurasia PaLo N. Am. Corp Eliminations Group External operating income 407.5 292.1 351.9 1.3 0.0 1,052.7 Intersegment operating income 60.7 2.8 2.0 85.4 -150.9 0.0 Total operating income 468.1 294.9 353.9 86.7 (150.9) 1,052.7 Operating expenses 411.2 25
Slide 7: Top-line decrease driven by COVID-19 impacts on mail and retail
Top-line decrease driven by COVID-19 impacts on mail and 2Q20 – M&R on retail and by deconsolidation of Alvadis M&R external operating income, € million Domestic Mail Transactional Proximity and convenience Operating income decline at € -40.9m i.e. Overall good resistance of volumes with retail netw
Slide 8: M&R EBIT impacted by mail evolution amplified by COVID-19
M&R EBIT impacted by mail evolution 2Q20 – M&R amplified by COVID-19 € million Mail & Retail External operating income 2Q19 479.4 2Q20 407.5 %↑ -15.0% Key takeaways 2Q20 Transactional 187.4 170.7 -8.9% • Total operating income decline of € -53.2m primarily driven by Advertising 60.2 37.5 -37.7% dome
Slide 9: Favourable COVID-19 revenue development in PaLo Eurasia
Favourable COVID-19 revenue development 2Q20 – PaLo Eurasia across the board in PaLo Eurasia PaLo Eurasia external operating income, € million Parcels BeNe E-commerce logistics Cross-border Parcels BeNe volume growth of Revenue growth mainly driven by Net favourable revenue impact 2Q19 196.5 +78.4%1
Slide 10: Strong EBIT development in PaLo Eurasia
Strong EBIT development from positive COVID-19 2Q20 – PaLo Eurasia volume impacts across all business lines € million Parcels & Logistics Europe and Asia External operating income 2Q19 196.5 2Q20 292.1 %↑ 48.7% Key takeaways 2Q20 Parcels BeNe 91.0 149.4 64.2% • Total operating income € +93.5m (+46.4
Slide 11: Parcels & Logistics North America growth at existing clients
Parcels & Logistics North America driven by significant 2Q20 – PaLo N. Am. growth at existing clients and by 2019 new business PaLo North America external operating income, € million E-commerce logistics International mail YoY increase of +53.5% (+50.7% at Declining revenues at The Mail 2Q19 238,0 c
Slide 12: Strongly positive EBIT evolution driven by e-commerce logistics
Strongly positive EBIT evolution driven by e-commerce 2Q20 – PaLo N. Am. Logistics, especially Radial € million Parcels & Logistics North America External operating income 2Q19 238.0 2Q20 351.9 %↑ 47.9% Key takeaways 2Q20 E-commerce logistics 215.6 331.0 53.5% • Total operating income increase of €
Slide 13: Corporate EBIT decline driven by headquarters disposal profit in 2Q19
Corporate EBIT decline driven by headquarters profit on 2Q20 – Corporate disposal in 2Q19 € million Corporate External operating income 2Q19 21.8 2Q20 1.3 %↑ -94.3% Key takeaways 2Q20 Intersegment operating income 93.0 85.4 -8.2% • External revenues down by € -20.5m driven by lower building Total op
Slide 14: Increased FCF thanks to payment terms in payables
Increased FCF1 thanks to payment terms in payables 2Q20 No bpost NV / SA tax prepayment in current quarter compensates LY’s proceeds from HQ building sale Reported ‐ € million 2Q19 2Q20 Delta + Cash flow from operating activities -27.3 138.3 165.6 + Cash flow from investing activities 31.8 -25.1 -56
Slide 15: Balance Sheet
Balance Sheet 2Q20 € million € million Assets Dec 31, 2019 Jun 30, 2020 Equity and Liabilities Dec 31, 2019 Jun 30, 2020 PPE 1,133.6 1,105.1 Total equity 682.6 749.5 Intangible assets 898.3 890.4 Interest-bearing loans & borrowings (incl. bank overdrafts) 1,449.9 1,464.8 Investments in associates an
Slide 16: Financing Structure & Liquidity
Financing Structure & Liquidity 2Q20 € million € million Available Liquidity Dec 31, 2019 Jun 30, 2020 External Funding Dec 31, 2019 Jun 30, 2020 Cash & cash equivalents 670.2 925.4 L o ng -ter m Cash in network 163.6 130.9 Long-term bond1 (1.25% - 07/2026) 650.0 650.0 Transit accounts 105.8 90.4 Ba
Slide 17: Initial 2020 Group EBIT outlook reconfirmed
Initial 2020 Group EBIT outlook reconfirmed Outlook FY20 Based on the current situation and facts, bpost Group reconfirms adjusted EBIT guidance for 2020 in the range of € 240-270m. Group Dividend Assuming no second national or important local lockdown in 2020, nor any The Board will recommend to th
Slide 18: Half year 2020 results
Half year 2020 results 5 August 2020
Slide 19: 1H20 EBIT impacted by COVID-19 mail volume decline
1H20 EBIT impacted by significant COVID-19 related mail volume 1H20 decline, partly compensated by strong PaLo performance € million 203.3 11,1 -52.7 -66.2 -12.6 150.6 18,4 9,3 7,7 192.2 € +7.3m excluding 2Q19 € 19.9m gain on HQ disposal 141.3 Adjusted1 Reported EBIT Mail & PaLo PaLo Corporate EBIT
Slide 20: Key financials 1H20
Key financials 1H20 1H20 1H20 COVID-19 impact on Group EBIT estimated at € -26.2m € million Reported Adjusted1 1 Amortization of intangibles recognized 1H19 1H20 1H19 1H20 %↑ during PPA is adjusted, leading to increase in EBIT (€ +9.3m) and income Total operating income 1,842.5 1,987.3 1,842.5 1,987
Slide 21: Results by segment 1H20
Results by segment 1H20 1H20 € million M&R PaLo Eurasia PaLo N. Am. Corp Eliminations Group External operating income 865.2 502.5 611.8 7.6 0.0 1,987.3 Intersegment operating income 102.9 5.9 3.3 175.9 -287.9 0.0 Total operating income 968.1 508.4 615.2 183.5 (287.9) 1,987.3 Operating expenses 825.1
Slide 22: Top-line decrease driven by COVID-19 impacts on Domestic Mail and retail
Top-line decrease driven by COVID-19 impacts on Domestic 1H20 – M&R Mail and on retail and by deconsolidation of Alvadis M&R external operating income, € million Domestic Mail Transactional Proximity and convenience Operating income decline at € -58.5m i.e. -12.8% underlying volume decline of retail
Slide 23: M&R EBIT impacted by COVID-19 mail evolution
M&R EBIT impacted by COVID-19 mail evolution despite a 1H20 – M&R good recovery in June and lower opex € million Mail & Retail External operating income 1H19 965.9 1H20 865.2 %↑ -10.4% Key takeaways 1H20 Transactional 382.9 364.0 -4.9% • Total operating income decline of € -80.7m primarily driven by
Slide 24: PaLo Eurasia significantly positively impacted by COVID-19
PaLo Eurasia significantly positively impacted by COVID-19 1H20 – PaLo Eurasia across the board PaLo Eurasia external operating income, € million Parcels BeNe E-commerce logistics Cross-border Parcels BeNe volume growth of Revenue growth of € +25.4m Net favourable revenues impact 1H19 388.2 +50.0%1,
Slide 25: Strong EBIT development in PaLo Eurasia
Strong EBIT development from positive COVID-19 1H20 – PaLo Eurasia volume impacts across all business lines € million Parcels & Logistics Europe and Asia External operating income 1H19 388.2 1H20 502.5 %↑ 29.4% Key takeaways 1H20 Parcels BeNe 178.4 254.1 42.4% • Total operating income € +110.2m (+27
Slide 26: Parcels & Logistics North America growth at existing clients
Parcels & Logistics North America driven by significant 1H20 – PaLo N. Am. growth at existing clients and 2019 new business PaLo North America external operating income, € million E-commerce logistics International mail YoY increase of +35.4% (+32.4% at Declining revenues at The Mail 1H19 465.1 cons
Slide 27: Strongly positive EBIT evolution of Radial
Strongly positive EBIT evolution of Radial partly offset 1H20 – PaLo N. Am. by continuing margin pressure in International mail € million Parcels & Logistics North America External operating income 1H19 465.1 1H20 611.8 %↑ 31.5% Key takeaways 1H20 E-commerce logistics 420.1 569.0 35.4% • Total opera
Slide 28: Corporate EBIT decrease driven by lower building sales
Corporate EBIT decrease mainly driven by 1H20 – Corporate lower building sales € million Corporate External operating income 1H19 23.3 1H20 7.6 %↑ -67.2% Key takeaways 1H20 Intersegment operating income 177.8 175.9 -1.1% • External revenues are down by € -15.7m driven by lower building Total operati
Slide 29: Positive evolution of FCF driven by payment terms in payables
Positive evolution of FCF1 mainly driven by payment terms 1H20 in payables and lower tax related cash flows Reported ‐ € million 1H19 1H20 Delta + Cash flow from operating activities 174.9 341.9 167.1 + Cash flow from investing activities 15.7 -34.5 -50.2 = Free cash flow 190.6 307.4 116.8 + Financi
Slide 30: Key contacts
Key contacts Saskia Dheedene Stéphanie Voisin Head of Investor Relations Manager Investor Relations Email: saskia.dheedene@bpost.be Email: stephanie.voisin@bpost.be Direct: +32 (0) 2 276 76 43 Direct: +32 (0) 2 276 21 97 Mobile: +32 (0) 477 92 23 43 Mobile: +32 (0) 478 48 58 71 Address: bpost Group,