Ctt - Correios De Portugal Sa · EURONEXT:CTT
Ctt - Correios De Portugal Sa — CTT – Correios de Portugal — Non-Deal Roadshow (November 2024)
21 slides from Ctt - Correios De Portugal Sa's roadshow presentation, November 2024
Slide 1: Munich Road Show Fall 2024
Munich Road Show Fall 2024 João Bento, CEO Nuno Vieira, IRO
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 fall roadshow investor me
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 8% 5-year CAGR a comprehensive Iberian e-commerce logistics player • Founded in 1520 • Publicly listed in 2013 • €615m market cap1 • Con
Slide 4: A balanced and highly synergic portfolio
A balanced and highly synergic portfolio CTT IN A NUTSHELL B2B / logistics B2C / retail Detailed ahead Detailed ahead 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 dri
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 weight 21% 26% 30% 29% 35% -15% 0% 21% 13% 23% 3Q24LTM : 131 101 +7.4% 985 907 848 74 72 740 745 +7.5% 88 53 66 65 60 38 41 341 193 256 259 152
Slide 6: Comprehensive Iberian coverage in Express & Parcels
Comprehensive Iberian coverage in Express & Parcels EXPRESS & PARCELS 100% D+1 full geographical coverage in Iberia >130M 50% items per year (3Q24, LTM) Spanish customers choose a single operator in Iberia >550k items daily (3Q24) 121k Automatic sorting capacity (k sorts/hour; 3Q24) 73 Distribution
Slide 7: 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 8: Continued volume growth in E&P Iberia
Continued volume growth in E&P Iberia EXPRESS & PARCELS E&P Iberia | CEP Volumes High quality and efficiency million items; % change vs. prior year • Maintain a quality service with high delivery efficiency +39.4% +46.2% rates despite an increase in daily volumes y.o.y in y.o.y in FY23 9M24 Continuo
Slide 9: 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. 7.3% +44.4% +44.0% 5.3% 330.5 2.5% 229.5 187.8 9M22 9M23 9M24 Volume growth underpinning operational leverage
Slide 10: 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 11: Banco CTT is the fastest growing banking franchise in Portugal
Banco CTT is the fastest growing banking franchise in Portugal BANCO CTT 676 Aug’20: 500,000 647 accounts, close to 2 Bn€ total assets 602 573 783k 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 12: 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 13: A clear strategy that rendered a proven business model
A clear strategy… that rendered a proven business model and… BANCO CTT Operating data Operating Income1,2 and Net Income1 of Banco CTT 9M24 € million 2023 120 17 Develop a sizable and high potential 676k current accounts retail client base 2022 110 15 48 2021 101 16 Leverage on CTT’s tradition on 20
Slide 14: Improved client engagement driving growth and profitability
Improved client engagement driving growth and profitability BANCO CTT Customer deposits1 Loans volumes2 Profit before Taxes3 € million, EoP € million, EoP € million; % change vs. prior year +46.0% +8.2% 3,968 908 839 Yield4 RoTE5: 8.6% 12.4% 6.4% 2,717 Sep-23 Sep-24 +25.9% 18.4 +8.7% 14.6 766 705 Yi
Slide 15: CTT is now heavily geared towards e-commerce growth
A balanced and highly synergic portfolio CONSOLIDATED VIEW Revenues € million; % change vs prior year; % weight Iberian e-commerce growth engine +8% +9% Growing towards another record year 1,062 985 907 Leveraging new USO contract 341 442 (+31%) 40% E&P 35% Stabilising revenues through price increas
Slide 16: 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 17: Balance sheet flexibility
Balance sheet flexibility FINANCIAL LEVERAGE EBITDA and leverage with Banco CTT under equity method1 Consolidated indicators € million FCF EBITDA Net Debt / EBITDA (x) €38m Net Debt ND/EBITDA ceiling envisaged in funding policy 2.5 EBITDA €147m 2.16 Net Debt €3m 1.72 3Q24 LTM 1.60 1.64 1.44 245 182
Slide 18: To support our growth, we will continue to invest in our business
To support our growth, we will continue to invest in our business OUTLOOK 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 t
Slide 19: Growing revenues and EBIT towards the CMD guided ambition for 2025
Growing revenues and EBIT Revenues Recurring EBIT Targets disclosed at the 2022 € million € million Capital Markets Day +7% .. +17%1 +6% ... +13%1 100 .. 120 1,100 ... 1,250 36% 9% mid-single 7% digit growth 88 80-90m 14% 985 907 63 7% 848 45% 10-20 61 65 745 49 60 36 44 434 37% 444 461 22 31 41 426
Slide 20: Confident on a buoyant outlook
Confident on a buoyant outlook WRAP UP Fastest growing e-commerce logistics player in Iberia • 4th largest e-commerce market in Europe with strong growth leveraged by market convergence Express & • Market share expansion based on quality, commercial proactivity and differentiated new services Parcel
Slide 21: We make our path fully committed to deliver
Investor Relations Phone: +351 210 471 087 E-mail: investors@ctt.pt ctt.pt We make our path fully committed to deliver ctt.pt
CTT – Correios de Portugal — Non-Deal Roadshow (November 2024) on 6ix