Ctt - Correios De Portugal Sa · EURONEXT:CTT
Ctt - Correios De Portugal Sa — CTT – Correios de Portugal — H1 2017 Earnings Presentation
22 slides from Ctt - Correios De Portugal Sa's earnings presentation, Jul 31, 2017
Slide 1: CTT – Correios de Portugal 1H17 Results Presentation
CTT – Correios de Portugal 1H17 Results Presentation CTT – Correios de Portugal, S.A. 31 July 2017 1
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 presentation of the 1st half 2017 results. As a consequence thereof, this document may not be disclosed or published, nor used by any other person or enti
Slide 3: Key highlights, Business units, Appendix
01. Key highlights 02. Business units Appendix 03. 3
Slide 4: Key highlights
01. Key highlights 4
Slide 5: Strategy to grow Express & Parcels and Banking pursued in 1H17
KEY HIGHLIGHTS: The strategy to grow the Express & Parcels and the Banking / Financial Services businesses was actively pursued in 1H17, accelerating in 2Q17 19 May Dividend payment of €0.48 per share (€72m) 26 January 4 May Launch of the mortgage offer by Acquisition of Transporta – Transportes Por
Slide 6: 2Q17 saw return to revenues growth and stabilisation of recurring EBITDA
KEY HIGHLIGHTS: 2Q17 saw return to revenues growth and stabilisation of recurring EBITDA (excl. Altice), despite the impact of the Easter break in the quarter Financial and operational performance € million, except when otherwise indicated Quarterly results Half-yearly results 2Q16 2Q17 Δ€ Δ% 1H16 1
Slide 7: Over €10m increase in revenues from growth businesses offset Mail decline
KEY HIGHLIGHTS: Higher than €10m increase in revenues from growth businesses in 1H17 fully offset the decline in Mail revenues and the Altice 1H16 impact 1H17 recurring revenues Revenues breakdown € million; % change vs. prior year; % of total € million Financial Services Banco CTT +0.8% €3.5m (N/A)
Slide 8: Increase in operating costs driven by Banco CTT, Transporta and volumes
KEY HIGHLIGHTS: The increase in operating costs was driven predominantly by Banco CTT, the integration of Transporta, and increase in variable costs as a result of volumes growth 1H17 recurring operating costs Operating costs breakdown € million; % change vs. prior year; % of total € million Other 3
Slide 9: Gradual improvement in recurring EBITDA continued in 2Q17
KEY HIGHLIGHTS: The trend of gradual improvement continued in 2Q17, with recurring EBITDA (excl. Altice) declining only 0.9%, supported by acceleration in the growth levers 1H17 recurring EBITDA Recurring EBITDA breakdown € million; % change vs. prior year; % of total € million Banco CTT -15.8% -€9.
Slide 10: Adjusted cash position reflects growth of Banco CTT activity
KEY HIGHLIGHTS: The adjusted cash position reflects the growth of Banco CTT activity in the past year Cash Flow € million; % change vs. 1H16 Reported Adjusted 1 1H17 ∆% 1H17 ∆% From operating activities 296.7 57.9% 182.7 >> Cash flow excl. Banco CTT 159.4 12.3% 45.3 >> Banco CTT cash flow 137.4 >> 1
Slide 11: Balance Sheet – 30 June 2017
KEY HIGHLIGHTS: The increase in cash and cash equivalents on the Balance Sheet was a result of the seasonal growth in FS and the continued expansion of Banco CTT activities Balance Sheet – 30 June 2017 € million; % change vs. 31 December 2016 Net financial debt (cash) €1,548m (+18%) €1,548m (+18%)
Slide 12: Business units
02. Business units 12
Slide 13: Mail: product mix and pricing offset addressed mail volume decline
BUSINESS UNITS: Product mix effect (registered mail volumes growth of 6.0% in 1H17) and pricing impact largely offset the addressed mail volumes decline 1H17 Mail revenues by type Recurring operating costs Recurring EBITDA € million, change vs. prior year (€; %) € million € million +2.9% 225.5 -13.4
Slide 14: Express & Parcels: strong organic parcels growth and Transporta acquisition
BUSINESS UNITS: Strong organic parcels volumes growth in Portugal and Spain and the Transporta acquisition drove mid-single digit revenues increase in E&P 1H17 E&P revenues by region Recurring operating costs Recurring EBITDA € million, change vs. prior year (€; %) € million € million +7.0% – Portug
Slide 15: Financial Services: IGCP contract renewal led to revenues growth
BUSINESS UNITS: The contract renewal with IGCP (simplified structure, no stock fees) led to revenues growth in 1H17; revenues are expected to stabilise along the year 1H17 FS revenues by type Recurring operating costs Recurring EBITDA € million, change vs. prior year (€; %) € million € million -3.2%
Slide 16: Banco CTT continued to expand customer base and product offer
BUSINESS UNITS: Banco CTT continued to expand its customer base and product offer # Current accounts Customer deposits Credits to clients & consumer credit Thousand € million € million +283% 200k clients in +358% +67% July 32.6 424.3 +99% 24.6 147.4 +354% 172.0 253.9 +268% 74.1 139.9 252.3 7.1 6.4 5
Slide 17: Banco CTT on track for high-single digit FY17 revenues
BUSINESS UNITS: Banco CTT on track to achieve high-single digit FY17 revenues while recurring operating costs declined sequentially (vs. 2H16) Banco CTT operating revenues Recurring operating costs Recurring EBITDA € million € million € million +63% -4.3% 13.5 +347% 0.2 12.9 0.4 3.5 0.1 7.5 39.7% 8.
Slide 18: Appendix
03. Appendix 18
Slide 19: Non-recurring items affecting the results
APPENDIX: Non-recurring items affecting the results € million 1H16 1H17 ∆ Reported EBITDA 57.0 45.7 -11.3 Non-recurring items affecting EBITDA 5.4 6.9 +1.4 €1.7m from recognised deferred gain due to early termination of vacant Revenues -1.7 - +1.7 building lease contract Staff costs 2.3 2.9 +0.6 Non
Slide 20: Consolidated results
APPENDIX: Consolidated results Banco CTT € million Reported Recurring 1 under equity method 1H16 1H17 1H16 1H17 1H16 1H17 Revenues 351.1 352.1 349.4 352.1 351.1 349.3 Operating costs 294.1 306.4 286.9 299.5 282.7 292.0 EBITDA 57.0 45.7 62.5 52.6 68.4 57.3 EBITDA margin 16.2% 13.0% 17.9% 14.9% 19.5%
Slide 21: Balance Sheet
APPENDIX: Balance Sheet Banco CTT € million CTT under equity method 31-Dec-16 30-Jun-17 31-Dec-16 30-Jun-17 Non-current assets 452.6 525.0 393.2 412.7 Current assets 864.1 1,022.8 669.9 708.3 Assets 1,316.7 1,547.8 1,063.1 1,120.9 Equity 233.3 179.7 233.3 179.7 Liabilities 1,083.4 1,368.2 829.8 941.
Slide 22: CTT Investor Relations
CTT Investor Relations Upcoming Events: 8 Sep. – Lisbon • XIV BPI Iberian Conference 11 Sep. – Madrid • Roadshow with Haitong 12 Sep. – London • JP Morgan Cazenove Small / Mid Cap Conference 13 Sep. – London • 8th BBVA Iberian Conference 14 Sep. – Paris • 25th Kepler Cheuvreux Autumn Conference Cont
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