Slide 1: Fourth quarter 2023 results Analyst call
Fourth quarter 2023 results Analyst call Chris Peeters, CEO Philippe Dartienne, CFO March 1st, 2024
Slide 2: Financial Calendar and Disclaimer
Investor presentation 4Q23 Interim financial report 4Q23 Financial Calendar Disclaimer 21.03.2024 This presentation is based on information published by bpost group in its Fourth Quarter 2023 Interim Financial Report, made available on March 1st, 2024 at 07.00am CET on bpostgroup.com/investors. This
Slide 3: Highlights of FY23
Highlights of FY23 FY23 bpostgroup delivers annual results in line with both initial and reinstated guidance. Performance driven by parcel volume development, pricing levers and enhanced productivity, despite North American market headwinds and compliance reviews impacts Group operating Belgium E-Lo
Slide 4: Highlights of 4Q23
Highlights of 4Q23 4Q23 Successful peak execution and productivity gains across businesses drive resilience amid revenue pressures in North America. Strong Asian volumes mitigate soft market backdrop in Belgium and Eurasia. Group operating Belgium E-Logistics Eurasia E-Logistics N. Am. income incl.
Slide 5: Key financials 4Q23
Key financials 4Q23 4Q23 € million Reported Adjusted1 4Q22 4Q23 4Q22 4Q23 D% 1 Amortization and impairments of intangibles recognized during Total operating income 1,301.6 1,217.2 1,301.6 1,217.2 -6.5% PPA are adjusted, leading to Operating expenses 1,158.5 1,063.6 1,155.9 1,063.6 -8.0% increase in
Slide 6: Parcel volume growth and beneficial Price Mix across mail and parcels
Parcel volume growth and beneficial Price Mix across 4Q23 – Belgium mail and parcels Belgium revenues, € million Domestic Mail Parcels Belgium Proximity and Stable revenues from: Parcels Belgium revenues convenience retail 4Q22 569.8 up € +8.9m (+6.6%): • € -25.1m volume (-8.1% network underlying vo
Slide 7: Strong domestic and inbound parcels, stable FTEs and productivity during peak
Strong domestic and inbound parcels, stable FTEs and 4Q23 – Belgium productivity during peak mitigate inflation of payroll costs € million Belgium 4Q22 4Q23 D% Key takeaways 4Q23 Transactional 184.5 189.6 2.7% Advertising 48.7 48.6 -0.2% • Higher intersegment revenues from inbound cross-border volum
Slide 8: Strong cross-border revenue growth from recent customer wins and IMX
Strong cross-border revenue growth from recent customer wins 4Q23 – E-Log. Eurasia and IMX, and continued momentum in e-com fulfilment E-Logistics Eurasia revenues, € million E-commerce logistics Cross-border Revenues up € +4.3m (+5.7%): Revenues up € +9.4m (+10.3%) mainly from: 4Q22 166.3 • Radial
Slide 9: Improved profitability fueled by favorable mix at cross-border and productivity gains
Improved profitability fueled by favorable mix at cross-border 4Q23 – E-Log. Eurasia and productivity gains € million E-Logistics Eurasia 4Q22 4Q23 D% Key takeaways 4Q23 E-commerce logistics 75.1 79.4 5.7% Cross-border 91.2 100.6 10.3% • Total operating income up € +14.2m (+8.2%) Intersegment and ot
Slide 10: Revenue pressure in a North American market that remains difficult
Revenue pressure in a North American market that remains 4Q23 – E-Log. N. Am. difficult E-Logistics N. America revenues, € million E-commerce logistics U.S. domestic market trend Revenues down € -105.7m (-18.8% or -14.6% at constant exchange rate) Domestic Package volume (U.S.) – y/y evolution 4Q22
Slide 11: Resource alignment and productivity gains protect margins
Resource alignment and productivity gains in all businesses 4Q23 – E-Log. N. Am. protect margins in challenging market conditions € million E-Logistics North America 4Q22 4Q23 D% Key takeaways 4Q23 E-commerce logistics 561.2 455.5 -18.8% Intersegment and other 1.9 4.0 112.4% • Total operating income
Slide 12: Continued FTE reduction mitigates the cost pressures
Continued FTE reduction mitigates the cost pressures 4Q23 – Corporate € million Corporate 4Q22 4Q23 D% Key takeaways 4Q23 External operating income 4.4 1.0 -76.3% Intersegment and other 98.8 112.2 13.6% • External revenues down € -3.3m mainly from building sales Total operating income 103.2 113.3 9.
Slide 13: Net cash outflow reflects working capital returning to normal seasonality
Net cash outflow reflects working capital returning to normal 4Q23 seasonality and bank loan repayment € million - Adjusted 4Q22 4Q23 D Cash flow from operating activities before Δ in WC and provisions 140.6 122.3 -18.2 1 Change in working capital and provisions 147.1 3.4 -143.7 2 Cash flow from ope
Slide 14: CEO first observations – Vision and Strategy are underway
CEO first observations – Vision and Strategy are underway Management Initial observations underpin the need for a large-scale transformation of the company in order to address the challenges posed by managing a declining historic business which is currently insufficiently compensated by recent diver
Slide 15: Selected key strategic initiatives have been activated in the meantime
Selected key strategic initiatives have been activated in the Management meantime Management continues to execute on existing priorities and has also already activated selected key strategic initiatives in light of the vision that is emerging for the group. Group Belgium E-Logistics Eurasia and Nort
Slide 16: Financial outlook 2024 – Underlying parameters
Financial outlook 2024 – Underlying parameters Outlook FY24 Group EBIT guidance pending operational and financial outcomes of ongoing commercial discussions with involved press stakeholders Belgium E-Logistics Eurasia E-Logistics N. Am. Group Slightly higher total operating Low double digit % growth
Slide 17: FY23
FY23
Slide 18: Key financials FY23
Key financials FY23 FY23 € million Reported Adjusted1 FY22 FY23 FY22 FY23 D% 1 Amortization and impairments of intangibles recognized during Total operating income 4,397.5 4,272.2 4,397.5 4,272.2 -2.9% PPA are adjusted, leading to Operating expenses 3,844.9 3,794.4 3,842.4 3,719.4 -3.2% increase in
Slide 19: Topline driven by strong parcel volumes and Mail pricing offsetting volume decline
Topline driven by strong parcel volumes and FY23 – Belgium Mail pricing offsetting volume decline Belgium revenues, € million Domestic Mail Parcels Belgium Proximity and FY22 2,140.6 Higher revenues reflecting: Parcels Belgium revenues convenience retail up € +50.0m (+11.1%): • € -101.8m volume (-8.
Slide 20: Topline growth and continued productivity improvement partly mitigate payroll inflation
Topline growth and continued productivity improvement partly FY23 – Belgium mitigate inflation of payroll costs € million Belgium FY22 FY23 D% Key takeaways FY23 Transactional 731.5 747.1 2.1% Advertising 187.1 179.0 -4.3% • Higher intersegment revenues from inbound cross-border volumes Press 345.9
Slide 21: Continued growth at Radial Europe and Active Ants and higher cross-border revenues
Continued growth at Radial Europe and Active Ants and higher FY23 – E-Log. Eurasia cross-border revenues from recent customer wins and IMX integration E-Logistics Eurasia revenues, € million E-commerce logistics Cross-border Revenues up € +18.1m (+6.6%): Revenues up € +32.0m (+10.1%) mainly from: FY
Slide 22: Improved profitability from topline growth and favorable mix at cross-border
Improved profitability from topline growth and FY23 – E-Log. Eurasia favorable mix at cross-border € million E-Logistics Eurasia FY22 FY23 D% Key takeaways FY23 E-commerce logistics 273.0 291.1 6.6% Cross-border 317.5 349.5 10.1% • Total operating income up € +54.2m (+8.8%) Intersegment and other 23
Slide 23: Revenue pressure reflecting economic softness, market over-capacity and Amazon insourcing
Revenue pressure reflecting economic softness, FY23 – E-Log. N. Am. market over-capacity and Amazon insourcing E-Logistics N. America revenues, € million E-commerce logistics U.S. domestic market trend Revenues down € -227.6m (-13.7% or -11.0% at constant exchange rate) Domestic Package volume (U.S.
Slide 24: Resource alignment and productivity gains protect margins in challenging conditions
Resource alignment and productivity gains protect margins in FY23 – E-Log. N. Am. challenging market conditions € million E-Logistics North America FY22 FY23 D% Key takeaways FY23 E-commerce logistics 1,655.9 1,428.3 -13.7% Intersegment and other 5.7 10.2 78.4% • Total operating income down € -223.2
Slide 25: Continued FTE reduction mitigates the cost pressures
Continued FTE reduction mitigates the cost pressures FY23 – Corporate € million Corporate FY22 FY23 D% Key takeaways FY23 External operating income 10.5 7.0 -33.3% Intersegment and other 393.7 430.8 9.4% • External revenues down € -3.5m mainly from building sales Total operating income 404.2 437.8 8
Slide 26: Higher cash outflows from investing and financing activities
Higher cash outflows from investing and financing activities reflecting FY23 last year’ sale of bpost bank and debt repayment in 2023 € million - Adjusted FY22 FY23 D Cash flow from operating activities before Δ in WC and provisions 516.4 418.9 -97.5 1 Change in working capital and provisions -99.8
Slide 27: Additional info
Additional info
Slide 28: Adjusted vs. reported Cash Flow Statement 4Q23
Adjusted vs. reported Cash Flow Statement 4Q23 € million Reported Adjusted 4Q22 4Q23 D 4Q22 4Q23 D Cash flow from operating activities before Δ in WC and provisions 140.6 122.3 -18.2 140.6 122.3 -18.2 Change in working capital and provisions 193.5 37.9 -155.6 147.1 3.4 -143.7 1 Cash flow from operat
Slide 29: Adjusted vs. reported Cash Flow Statement FY23
Adjusted vs. reported Cash Flow Statement FY23 € million Reported Adjusted FY22 FY23 D FY22 FY23 D Cash flow from operating activities before Δ in WC and provisions 516.4 418.9 -97.5 516.4 418.9 -97.5 Change in working capital and provisions -94.0 -42.6 51.3 -99.8 -45.8 54.0 1 Cash flow from operati
Slide 30: Balance Sheet
Balance Sheet 4Q23 € million € million Assets Dec 31, 2022 Dec 31, 2023 Equity and Liabilities Dec 31, 2022 Dec 31, 2023 Property, Plant and Equipment 1,398.9 1,372.0 Total equity 1,065.4 1,026.5 Intangible assets 855.8 810.9 Interest-bearing loans & borrowings 1,488.6 1,291.0 Investments in associa
Slide 31: Financing Structure & Liquidity
Financing Structure & Liquidity 4Q23 € million € million Available Liquidity Dec 31, 2022 Dec 31, 2023 External Funding Dec 31, 2022 Dec 31, 2023 Ca sh & c a sh eq u iv a l en ts 1,051.0 870.6 L o n g -term 650.0 650.0 1 Cash in network 143.9 122.5 Long-term bond (1.25% - 07/2026) 650.0 650.0 Transi
Slide 32: Key contact
Key contact Antoine Lebecq Head of Investor Relations Email: antoine.lebecq@bpost.be Direct: +32 (0) 2 276 29 85 Mobile: +32 (0) 471 81 24 77 Address: bpostgroup, Boulevard Anspach 1, 1000 Brussels, Belgium 32