Postnl Nv · EURONEXT:PNL
Postnl Nv — Q3 2023 Earnings Presentation
27 slides from Postnl Nv's earnings presentation, Nov 6, 2023
Slide 1: Q3 2023 Results
Q3 2023 Results The Hague, the Netherlands 1 6 November 2023
Slide 2: Additional information, forward-looking statements and non-GAAP information
Additional information known and unknown risks, uncertainties and other Use of non-GAAP information factors that are outside of our control and Additional information is available at In presenting and discussing the PostNL Group impossible to predict and may cause actual www.postnl.nl. Elements of t
Slide 3: Key takeaways Q3 2023
Key takeaways Q3 2023 Results better than last year in a tough quarter Highlights • Parcel volumes up 1.6%, lower than anticipated; continued strong growth from international customers • Volumes Mail in the Netherlands -8.7%, in line with guided FY volume decline of 8% - 10% • Unfavourable shift in
Slide 4: Q3 2023 performance
Q3 2023 performance Normalised EBIT of €(11)m, above Q3 2022 Key financial metrics Q3 Q3 YTD YTD (in € million) 2022 2023 change 2022 2023 change Revenue 709 722 2% 2,261 2,276 1% Normalised EBIT (20) (11) 46% 23 14 -39% Free cash flow (49) (26) (39) (91) Normalised comprehensive income (3) (4) -22%
Slide 5: Our strategy
Our strategy Strategic foundation • The leading logistics and postal service provider in, to and from the Benelux region Parcels Mail Manage for sustainable growth Manage for value Support business performance and increase customer satisfaction Strategic objectives Customer value Social value Enviro
Slide 6: Current market environment remains challenging
Current market environment remains challenging Confidence in long-term growth potential e-commerce market • Main fundamental driver of long-term e- Online penetration commerce growth: shift to online shopping % of total retail spend on products, the Netherlands continues • No clear signs of recovery
Slide 7: Parcels: Volume growth, but unfavourable shift in mix
Parcels: Volume growth, but unfavourable shift in mix Fully prepared for steep ramp-up towards peak season Revenue Normalised Volumes Revenue mix EBIT in € million Q3 2022 Q3 2023 Q3 2023 €535m €1m 81m +1.6% Parcels Netherlands 332 342 Spring 95 116 Q3 2022 €506m €(1)m 80m Logistics solutions and ot
Slide 8: Parcels Q3 2023 normalised EBIT bridge
Parcels Q3 2023 normalised EBIT bridge Volume growth and operational efficiency do not fully mitigate organic costs increase (in € million) Normalised EBIT Q3 2022 -1 Parcels Netherlands Revenue - volume 10 1.6% volume growth Revenue - price/mix 0 Price increases (€12m) fully offset by less favourab
Slide 9: Mail in the Netherlands: further cost increases
Mail in the Netherlands: further cost increases In challenging conditions Revenue Normalised Volumes EBIT Q3 2023 €299m €(14)m 356m -8.7% Q3 2022 €328m €(1)m* 390m Volume Revenue Costs • Overall volume decline of 8.7% • Moderate pricing policy • Increase in labour costs following CLAs for • 6.9% vol
Slide 10: Mail in the Netherlands Q3 2023 normalised EBIT bridge
Mail in the Netherlands Q3 2023 normalised EBIT bridge Price increases and cost savings do not fully mitigate impact of volume decline and organic costs (in € million) Normalised EBIT Q3 2022 (1) Mail activities Revenue - volume (17) 8.7% volume decline Moderate pricing policy (€13m), partly offset
Slide 11: Cash flow
Cash flow Q3 2022 Q3 2023 Normalised EBIT (20) (11) Reversal normalisations (1) (1) Depreciation & amortisation 37 45 Capex (36) (26) Lower capex, FY capex assumption at ~€130m Lease payments and related cash flow (18) (19) Change in working capital (37) (9) Includes phasing effects throughout the y
Slide 12: Solid balance sheet
Solid balance sheet Tender offer to partly buy back Eurobond due Nov-24 to optimise financial position Balance sheet (in € million) 30 Sep 2023 30 Sep 2023 Intangible fixed assets 404 Consolidated equity 158 Property, plant and equipment 476 Non-controlling interests 2 Right-of-use assets 283 Total
Slide 13: Outlook FY 2023
Outlook FY 2023 Macroeconomic uncertainty and limited visibility short-term development of e-commerce market Outlook FY 2023 Beyond 2023 • FY 2023 expected to come in at low end of guided ranges • Increasing pressure from labour-related costs, further adverse developments since August 2023 outlook 2
Slide 14: Improving Y-o-Y business performance as of Q2
Improving Y-o-Y business performance as of Q2 Ready for steep ramp-up to peak season Quarterly split of normalised EBIT Ramp-up towards peak season Indicative only, in € million 160 Indexed volume, indicative only 2022 Historic pattern Outlook 2023 140 2023 indicative 60 120 33 18 100 7 10 80 Q1 Q2
Slide 15: Closing remarks
Closing remarks Confidence in our strategy, with short-term uncertainty around macroeconomic developments • Results again better than previous year, but below expectations • FY 2023 normalised EBIT at the low end of guided range of €100m - €130m • Sharp ramp-up towards peak season • Limited visibili
Slide 16: Q&A
Q&A
Slide 17: Appendix
Appendix • Results per segment Q3 2023 and YTD 2023 • Revenue mix Parcels • Full reconciliation of income statement and EBITDA per segment • Free cash flow per segment Q3 2023 • Free cash flow YTD 2023 • Result development (bridge) per segment • Profit and normalised comprehensive income • Assumed n
Slide 18: Results per segment Q3 2023 and YTD 2023
Results per segment Q3 2023 and YTD 2023 (in € million) Revenue Normalised EBIT Margin Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Parcels 506 535 (1) 1 -0.2% 0.2% Mail in the Netherlands 328 299 (1) (14) -0.4% -4.7% PostNL Other 56 62 (18) 2 Intercompany (181) (174) PostNL 709 722 (20) (11) -2.
Slide 19: Revenue mix Parcels
Revenue mix Parcels As of 2023 (in € million) Q1 2022 Q1 2023 Q2 2022 Q2 2023 Q3 2022 Q3 2023 Q4 2022 FY 2022 Parcels Netherlands 361 355 345 366 332 342 392 1,431 Spring 105 116 91 119 95 116 113 404 Logistics solutions and other 77 72 74 72 68 67 77 297 Other / intercompany 11 19 9 (0) 11 9 4 34 P
Slide 20: Full reconciliation of income statement and EBITDA Q3 2023
Full reconciliation of income statement and EBITDA Q3 2023 Income statement PostNL Parcels Mail in NL PostNL Other Eliminations (in € million) Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Total operating revenue 709 722 506 535 328 299 56 62 (181) (174) Other incom
Slide 21: Full reconciliation of income statement and EBITDA YTD 2023
Full reconciliation of income statement and EBITDA YTD 2023 Income statement PostNL Parcels Mail in NL PostNL Other Eliminations (in € million) YTD YTD YTD YTD YTD YTD YTD YTD YTD YTD 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 Total operating revenue 2,261 2,276 1,579 1,652 1,066 971 165 181
Slide 22: Free cash flow per segment Q3 2023
Free cash flow per segment Q3 2023 (in € million) PostNL Parcels Mail in NL PostNL Other & Eliminations Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 EBITDA 16 33 15 20 5 (7) (4) 20 Change in pensions 19 0 - 0 - - 19 (0) Change in provisions 1 (1) 1 0 0 (2) (0) 0 Change in working
Slide 23: Cash flow YTD
Cash flow YTD YTD 2022 YTD 2023 Normalised EBIT 23 14 Reversal normalisations (5) (2) Depreciation & amortisation 115 130 Capex (100) (90) Lease payments and related cash flow (52) (54) Change in working capital (61) (47) Phasing over quarters within the year Pension expense equal to regular pension
Slide 24: Parcels YTD 2023 normalised EBIT bridge
Parcels YTD 2023 normalised EBIT bridge (in € million) Normalised EBIT YTD 2022 32 Parcels Netherlands Revenue - volume 1 0.7% volume decline Revenue - price/mix 23 Overall higher prices partly offset by less favourable mix development Wage increases PostNL CLA, sector CLA, indexation for delivery O
Slide 25: Mail in the Netherlands YTD 2023 normalised EBIT bridge
Mail in the Netherlands YTD 2023 normalised EBIT bridge (in € million) Normalised EBIT YTD 2022 47 Mail activities Revenue - volume (62) 9.6% volume decline Revenue - price/mix 33 Mainly pricing Organic costs (37) Wage increases and other inflationary pressures Volume-dependent costs 12 Cost savings
Slide 26: Profit and normalised comprehensive income PostNL
Profit and normalised comprehensive income* PostNL (in € million) Q1 2022 Q1 2023 Q2 2022 Q2 2023 Q3 2022 Q3 2023 YTD 2022 YTD 2023 Operating income / EBIT 30 7 9 17 (21) (12) 18 12 Net financial expenses (6) (1) (5) (2) (4) 0 (16) (2) Results from investments in JVs/associates 0 (0) (0) (0) (0) (2)
Slide 27: Assumed non-recurring impact related to Covid-19 in 2022
Assumed non-recurring impact related to Covid-19 in 2022 Volumes (around, in million) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Parcels 2 - - - 2 Mail in the Netherlands 15 3 7 6 30 Revenue (around, in € million) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Parcels 2 - - - 2 Mail in the Netherlands 9 1 2 1