Ctt - Correios De Portugal Sa · EURONEXT:CTT

Ctt - Correios De Portugal Sa — CTT – Correios de Portugal — Non-Deal Roadshow (March 2017)

29 slides from Ctt - Correios De Portugal Sa's roadshow presentation, March 2017

  1. Slide 1: Full Year 2016 Results Roadshows

    FULL YEAR 2016 Results Roadshows CTT – Correios de Portugal, S.A. March 20171

  2. Slide 2: Disclaimer

    Disclaimer DISCLAIMER This document has been prepared by CTT – Correios de Portugal, S.A. (the “Company” or “CTT”) exclusively for use during the roadshows of the full year 2016 results. As a consequence thereof, this document may not be disclosed or published, nor used by any other person or entity

  3. Slide 3: Company overview Key highlights Business units

    01. Company overview 02. Key highlights 03. Business units 2017 outlook 04. Appendix 05. 3

  4. Slide 4: Company overview

    01. Company overview 4

  5. Slide 5: A modern and dynamic postal services operator with a diversified portfolio of businesses

    COMPANY OVERVIEW: A MODERN AND DYNAMIC POSTAL SERVICES OPERATOR WITH A DIVERSIFIED PORTFOLIO OF BUSINESSES 72% 10% 18% Mail Financial Express Banco CTT & Other Services & Parcels 70% 27% 3% MAIL BUSINESS RETAIL SAVINGS & INSURANCE PORTUGAL SPAIN MOZAMBIQUE SOLUTIONS SERVICES CREDIT Transactional Pri

  6. Slide 6: The global postal sector is now well diversified

    COMPANY OVERVIEW: THE GLOBAL POSTAL SECTOR IS NOW WELL DIVERSIFIED AND DRIVES THE FULFILMENT OF THE “INTERNET OF THINGS” €424.4bn postal industry E-COMMERCE revenues +2.8% postal industry revenues growth ADVERTISING FINANCIAL SERVICES 37.7% mail share of industry revenues GLOBAL -4.8% decrease in ma

  7. Slide 7: Going through a significant transformation phase to adapt to new market trends

    COMPANY OVERVIEW: GOING THROUGH A SIGNIFICANT TRANSFORMATION PHASE IN ORDER TO ADAPT TO NEW MARKET TRENDS Online shopping Internet of A new paradigm and Postal Things an opportunity Leverage on data PEOPLE and technology AND THINGS Digitalisation STILL NEED Substitution effect What can be digital… w

  8. Slide 8: Fine-tuning of the key strategic levers to ensure sustainability of revenues and EBITDA growth

    COMPANY OVERVIEW: FINE-TUNING OF THE KEY STRATEGIC LEVERS TO ENSURE THE SUSTAINABILITY OF REVENUES & EBITDA GROWTH COMMERCIAL EXCELLENCE Redefine an integrated commercial approach to identify and fully meet our clients’ needs and preferences OPERATIONAL EFFICIENCY Focus on continuous improvement of

  9. Slide 9: Key highlights

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  10. Slide 10: The launch of Banco CTT to the public was the landmark event of 2016

    KEY HIGHLIGHTS: THE LAUNCH OF BANCO CTT TO THE PUBLIC WAS THE LANDMARK EVENT OF 2016 Banco CTT opened to the public in 51 CTT post offices, closing the year with 202 branches countrywide, BANCO CTT & 105 thousand clients, more than 74 thousand current accounts & more than €250m in customer deposits

  11. Slide 11: Important 2016 milestones

    KEY HIGHLIGHTS: IMPORTANT 2016 MILESTONES Price update, corresponding to 1.1% average Acquisition of Approval of all the total share annual increase 28 proposed resolutions capital of Apr at the AGM Launch of the Transporta 1 1 Feb Express & Opening of Parcels modular 15 Banco CTT to offer in Portug

  12. Slide 12: Weaker than expected revenues performance and the launch of Banco CTT impacted 2016 results

    KEY HIGHLIGHTS: WEAKER THAN EXPECTED REVENUES PERFORMANCE AND THE LAUNCH OF BANCO CTT IMPACTED THE 2016 RESULTS FY16 financial and operational performance € million, except when otherwise indicated Including Banco CTT Excluding Banco CTT 1 Financial indicators: 2015 2016 Δ% 2015 2016 Δ% Recurring re

  13. Slide 13: Unexpected revenues decline in a traditionally strong 4th quarter

    KEY HIGHLIGHTS: UNEXPECTED REVENUES DECLINE IN WHAT IS TRADITIONALLY A STRONG 4th QUARTER WITH RELEVANT IMPACT ON EBITDA 4Q16 financial and operational performance € million, except when otherwise indicated Including Banco CTT Excluding Banco CTT 1 Financial indicators: 4Q15 4Q16 Δ% 4Q15 4Q16 Δ% Rec

  14. Slide 14: Planned revenues generation initiatives had no real impact in 2016 due to launch delays

    KEY HIGHLIGHTS: THE PLANNED REVENUES GENERATION INITIATIVES (NOW ALL UNDERWAY) HAD NO REAL IMPACT IN 2016 DUE TO LAUNCH DELAYS 2016 recurring revenues Revenues breakdown € million; % change vs. prior year; % of total € million Banco CTT -4.2% Financial Services €1.0m (N/A) €70.8m (-6.0%) 10% 727.2 E

  15. Slide 15: Continuous focus on efficiency drove a decline in recurring operating costs

    KEY HIGHLIGHTS: CONTINUOUS FOCUS ON EFFICIENCY MANAGEMENT DROVE A DECLINE IN FY16 RECURRING OPERATING COSTS, ABSORBING BANCO CTT COSTS 2016 recurring operating costs Operating costs breakdown € million; % change vs. prior year; % of total € million Other €23.9m (-10.7%) -1.3% 4% +19.2 594.8 583.2 -5

  16. Slide 16: Recurring EBITDA dropped 6.3% as a result of lower than expected revenues

    KEY HIGHLIGHTS: RECURRING EBITDA DROPPED 6.3% AS A RESULT OF LOWER THAN EXPECTED REVENUES, ONLY PARTIALLY OFFSET BY DECLINE IN OPERATING COSTS 2016 recurring EBITDA Recurring EBITDA breakdown € million; % change vs. prior year; % of total € million Banco CTT -6.3% -€20.8m (N/A) Financial Services +5

  17. Slide 17: The Board reaffirms the commitment to growing the dividend

    KEY HIGHLIGHTS: THE BOARD REAFFIRMS THE COMMITMENT TO GROWING THE DIVIDEND, IN A YEAR OF STRONG INVESTMENT IN BANCO CTT Cash flow Dividend € million € million Reported Adjusted 1 Payout 98% 90% 98% 118% 2016 ∆% 2016 ∆% From operating activities 268.2 >> 269.4 187.0 CAGR Cash flow excl. Banco CTT 42.

  18. Slide 18: The balance sheet grew as Banco CTT customer acquisitions and deposits picked up

    KEY HIGHLIGHTS: THE BALANCE SHEET GREW AS BANCO CTT CUSTOMER ACQUISITIONS AND DEPOSITS PICKED UP ALONG THE YEAR Balance Sheet – 31 December 2016 € million; % change vs. 31 December 2015 Net financial debt (cash) 1,317 1,317 + ST&LT debt: €10m + Net FS payables: €324m − Cash and cash equivalents: €61

  19. Slide 19: Business units

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  20. Slide 20: Registered mail revenues decline weighed on Mail performance in 2016

    BUSINESS UNITS: REGISTERED MAIL REVENUES DECLINE (CIRCA €10M IMPACT) WEIGHED ON MAIL PERFORMANCE IN 2016 2016 Mail revenues by type Recurring operating costs Recurring EBITDA € million, % change vs. prior year € million € million -3.6% -4.8% 451.9 435.7 102.7 97.8 – Transactional €403.7m (-3.1%) – A

  21. Slide 21: Restructuring in Spain and delay in modular offer impacted 2016 E&P revenues

    BUSINESS UNITS: RESTRUCTURING IN SPAIN AND THE DELAY IN THE LAUNCH OF THE MODULAR OFFER IN PORTUGAL IMPACTED THE 2016 E&P REVENUES 2016 E&P revenues by region Recurring operating costs Recurring EBITDA € million, % change vs. prior year € million € million -8.7% +15.3% 127.2 116.2 4.6 4.0 3.8% – Por

  22. Slide 22: Savings revenues recovered along the year; credit products transferred to Banco CTT

    BUSINESS UNITS: SAVINGS REVENUES RECOVERED ALONG THE YEAR, AS EXPECTED; CREDIT PRODUCTS WERE TRANSFERRED TO BANCO CTT 2016 FS revenues by type Recurring operating costs Recurring EBITDA € million, % change vs. prior year € million € million -1.4% -9.7% 33.4 32.9 41.9 37.9 – Savings & Insurance €32.2

  23. Slide 23: The focus of Banco CTT in 2016 was on customer acquisitions and spending within target

    BUSINESS UNITS: THE FOCUS OF BANCO CTT IN 2016 WAS ON CUSTOMER ACQUISITIONS AND MAINTAINING PROJECT SPENDING WITHIN TARGET 2016 Banco CTT key indicators € million ASSETS 46.0 €21.3m €6.9m €183.6m Cash & cash equivalents & other Recurring Non-rec. op. costs op. costs 8.7 €101.5m Financial assets & in

  24. Slide 24: 2017 outlook

    04. 2017 outlook 24

  25. Slide 25: Goal of small growth in revenues and flat recurring EBITDA; dividend policy reaffirmed

    2017 OUTLOOK: GOAL OF SMALL GROWTH IN REVENUES AND FLAT RECURRING EBITDA (EX-ALTICE); DIVIDEND POLICY REAFFIRMED Small growth in revenues, supported by the Express & Parcels business (new modular offer in Portugal & the strategy underway in Spain), Banco CTT and payments, and the new advertising off

  26. Slide 26: Appendix

    05. Appendix 26

  27. Slide 27: Appendix: Consolidated results

    APPENDIX: CONSOLIDATED RESULTS Including Banco CTT Excluding Banco CTT 1 € million Reported Recurring 2 Reported Recurring 2 2015 2016 2015 2016 2015 2016 2015 2016 Revenues 727.2 696.8 727.2 695.1 727.2 695.5 727.2 693.8 Operating costs 592.6 594.8 583.2 575.6 581.2 566.5 578.2 554.2 EBITDA 134.6 1

  28. Slide 28: Appendix: Non-recurring items affecting the results

    APPENDIX: NON-RECURRING ITEMS AFFECTING THE RESULTS € million 2015 2016 ∆ Reported EBITDA 134.6 102.1 -32.5 Non-recurring items affecting EBITDA 9.4 17.4 8.0 Revenues 0.0 -1.8 -1.8 Staff costs 0.0 10.0 10.0 ES&S & other op. costs 9.4 9.2 -0.2 Recurring EBITDA 144.0 119.5 -24.5 Reported EBIT 109.9 90

  29. Slide 29: CTT Investor Relations

    CTT Investor Relations Upcoming Events: 10 Mar. – Lisbon • Roadshow with Caixa BI 13 Mar. – Edinburgh • Roadshow with JP Morgan 14 Mar. – London • Roadshow with Barclays 15 Mar. – Frankfurt • Roadshow with Morgan Stanley 16 Mar. – Madrid • Roadshow with BPI 30 Mar. – Paris • 30th ESN European Confer

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