Slide 1: Interim financial report second quarter 2015 Investor presentation
Interim financial report second quarter 2015 Investor presentation Koen Van Gerven, CEO Brussels – August, 7 2015
Slide 2: Financial Calendar and Disclaimer
2 Investor presentation - Interim financial report 2Q15 Financial Calendar More on www.bpost.be/ir 05.11.2015 08.12.2015 (17:45 CET) Ex-dividend date Quarterly results 3Q15 (interim dividend) 03.12.2015 10.12.2015 Payment date of (17:45 CET) the interim dividend Results first 10 months 2015 Disclaim
Slide 3: Highlights of 2Q15
2Q15 3 Highlights of 2Q15 Revenues down 2.6% • due to 2014 elections, lower SGEI compensation, management decision to € 597.6m curtail some International Mail activities but also a bad performance in Advertising Mail. However, very strong parcels growth Underlying Domestic Mail volume decline -6.1%
Slide 4: Strong parcels growth & cost control compensated weak domestic mail
2Q15 4 Strong parcels growth & cost control compensated weak domestic mail € million € +0.3m / +0.2% +163.6 -4.2 -18.5 +159.8 -4.6 2014 elections +12.0 -6.2 -13.9 +12.4 +0.6 EBITDA SGEI Domestic Mail Parcels Additional Corporate Costs EBITDA 2Q14 compensation sources of 2Q15 revenues Total operating
Slide 5: Summary of key financials
2Q15 5 Summary of key financials € million Reported/Normalized 2Q14 2Q15 %∆ Total operating income (revenues) 613.5 597.6 -2.6% Operating expenses 449.9 437.9 -2.7% EBITDA 163.6 159.8 -2.3% Margin (%) 26.7% 26.7% EBIT 142.3 138.3 -2.9% Margin (%) 23.2% 23.1% Profit before tax 135.5 139.2 2.8% Income
Slide 6: Total operating income (revenues) lower by €11.7m on an organic basis
2Q15 6 Total operating income (revenues) lower by € 11.7m on an organic basis € million 2Q14 Reclassifi- 2Q14 2 SGEI Organic 2Q15 % Org reported cations comparable Transactional mail 235.8 0.6 236.5 - -7.6 228.8 -3.2% Domestic mail Advertising mail 71.4 -0.2 71.2 - -9.8 61.4 -13.7% Press 77.9 - 77.9
Slide 7: Excluding elections, domestic mail volume decreased by -6.1%
2Q15 7 Excluding elections, domestic mail volume decreased by -6.1% driven by bad performance in advertising mail Total operating income (revenues), € million 2Q14 385.5 comparable SGEI -3.0 • Underlying volume decline at -6.1% 2Q14 before • Negative impact of elections € -4.6m 382.5 organic evoluti
Slide 8: Strong growth in domestic parcels and continued growth of international parcels
2Q15 8 Strong growth in domestic parcels and continued growth of international parcels Total operating income (revenues), € million 2Q14 68.9 • Very strong volume growth of 12.6% driven by comparable excellent e-commerce growth and continued positive trend in C2C parcels sales (new product offering)
Slide 9: Additional sources of revenue in line with LY, except international mail curtailment
2Q15 9 Additional sources of revenue in line with LY, except for the curtailment of low margin international mail activities Total operating income (revenues), € million 2Q14 152.8 comparable SGEI -1.1 2Q14 before 151.6 organic evolution International Mail -6.4 • International mail sales were impact
Slide 10: Costs remain perfectly under control with strong productivity improvement
2Q15 10 Costs remain perfectly under control with strong productivity improvement Operating expenses excl. depreciation and amortization, € million • One-off positive settlement of social charges (€ -5.7m) in payroll • Increase in provisions (€ +3.7) and other operating charges with 2Q14 449.9 Gout
Slide 11: Operating free cash flow of €-21.3m in 2Q15
2Q15 11 Operating free cash flow1 of € -21.3m in 2Q15 € million € million 2Q14 2Q15 Delta Cash flow from operating activities +11.8 -3.3 -15.2 Cash flow from investing activities -15.8 -17.9 -2.1 Operating free cash flow1 -4.0 -21.3 -17.3 Financing activities -40.5 -44.2 -3.7 Net cash movement -44.5
Slide 12: Strong balance sheet structure
2Q15 12 Strong balance sheet structure € million Assets Equity and liabilities 2,218.3 2,218.3 2,121.8 Interest-bearing 2,121.8 75.2 75.6 65.9 loans & borrowings 64.8 Cash & cash Provisions 562.3 795.9 equivalents Trade & other 935.3 Other assets 74.4 931.4 payables 64.3 Investments in 416.5 associa
Slide 13: Outlook for 2015
2Q15 13 Outlook for 2015 We expect mail volumes to remain under substantial pressure. As a consequence we plan for an underlying Domestic Mail volume decline of around -6%. The compensation for the SGEI (management contract) will be € 16.5m lower than in 2014 as the government has decided to reduce
Slide 14: Interim financial report Half year 2015 Investor presentation
Interim financial report Half year 2015 Investor presentation Koen Van Gerven, CEO Brussels – August, 7 2015
Slide 15: Organic EBITDA increased with €4.2m thanks to parcels and cost control
1H15 15 Organic EBITDA increased with € 4.2m thanks to increase in parcels and further cost control, despite the negative impact of 2014 elections. Total EBITDA down € 4.1m due to SGEI reduction € million € +4.2m / +1.2% +336.6 +332.5 -8.3 -31.6 -4.6 2014 elections +21.9 -10.3 -27.0 +0.3 +24.0 EBITD
Slide 16: Summary of key financials 1H15
1H15 16 Summary of key financials € million Reported/Normalized 1H14 1H15 %∆ Total operating income (revenues) 1,240.2 1,214.2 -2.1% Operating expenses 903.6 881.7 -2.4% EBITDA 336.6 332.5 -1.2% Margin (%) 27.1% 27.4% EBIT 294.4 289.8 -1.5% Margin (%) 23.7% 23.9% Profit before tax 289.0 288.2 -0.3%
Slide 17: Total operating income (revenues) lower by €17.7m on an organic basis
1H15 17 Total operating income (revenues) lower by € 17.7m on an organic basis € million 1H14 Reclassifi- 1H14 SGEI Organic 1H15 % Org reported cations2 comparable Transactional mail 474.7 1.5 476.2 - -14.8 461.4 -3.1% Domestic mail Advertising mail 141.6 -0.4 141.2 - -15.1 126.1 -10.7% Press 155.6
Slide 18: Underlying domestic mail volume down 5.7%
1H15 18 Underlying domestic mail volume down 5.7% driven by bad advertising mail performance Total operating income (revenues), € million 1H14 773.0 comparable SGEI -6.1 • Underlying volume decline at -5.7% 1H14 before • Negative impact of elections € -4.6m 766.9 organic evolution • Transactional ma
Slide 19: Solid volume growth in domestic parcels and strong international parcels
1H15 19 Solid volume growth in domestic parcels and strong development in international parcels Total operating income (revenues), € million 1H14 140.5 comparable • Solid volume growth of 11.4% driven by e-commerce growth and positive trend in C2C parcels sales (new product offering). A negative pri
Slide 20: Additional sources of revenue affected by curtailment of wholesale international mail
1H15 20 Additional sources of revenue mainly affected by the curtailment of very low margin wholesale international mail activities Total operating income (revenues), € million 1H14 308.7 comparable SGEI -2.3 1H14 before • International mail sales were impacted by the 306.4 organic evolution curtail
Slide 21: Cost savings thanks to payroll & interim, offset by transport and other costs
1H15 21 Cost savings thanks to payroll & interim in part offset by the increase in transport costs and other costs Operating expenses excl. depreciation and amortization, € million 1H14 903.6 • Total FTE reduction of 755 FTE (€ -17.9m) • Positive mix impact of € -6.0m mainly thanks to the recruitmen
Slide 22: Operating free cash flow of €276.8m in 1H15
1H15 22 Operating free cash flow1 of € 276.8m in 1H15 € million € million 1H14 1H15 Delta Cash flow from operating activities +396.4 +303.2 -93.2 Cash flow from investing activities -33.1 -26.4 +6.6 1 Operating free cash flow +363.4 +276.8 -86.5 Financing activities -41.2 -44.4 -3.3 Net cash movemen
Slide 23: Key contacts
23 Key contacts Baudouin de Hepcée • Email: baudouin.dehepcee@bpost.be • Direct: +32 (0) 2 276 22 28 Director External Communication, • Mobile: +32 (0) 476 49 69 58 Investor Relations & Public Affairs • Address: bpost, Centre Monnaie, 1000 Brussels, Belgium • Email: saskia.dheedene@bpost.be Saskia D