Postnl Nv · EURONEXT:PNL
Postnl Nv — Q3 2018 Earnings Presentation
30 slides from Postnl Nv's earnings presentation, Nov 5, 2018
Slide 1: Q3 2018 Results
Q3 2018 Results The Hague, 5 November 2018
Slide 2: Q3 2018 Results
Q3 2018 Results Nexive and Postcon are classified as discontinued operations, resulting in adjusted segment reporting. All financials are based on continuing operations except where noted. Key takeaways Business review Financial review Conclusion Q&A 2
Slide 3: Confidence in achieving UCOI outlook 2018
Confidence in achieving UCOI outlook 2018 Satisfying Q3 results Revenue Underlying cash Positive adjustment expected impact Significant Market Power operating income • Expected financial impact related to ACM measures adjusted to €40m - €45m (previously: €50m - €70m), fully visible in 2020 • Going f
Slide 4: Decision on SMP annulled in September
Decision on SMP annulled in September Financial impact ACM measures adjusted to between €40m and €45m, fully visible in 2020 • Expected financial impact of ACM measures, was €50m - €70m Financial impact ACM measures annualised, fully visible in FY 2020 (A) (illustrative only) • Impact since 2016 as
Slide 5: Broad political support for conclusions postal dialogue is crucial
Broad political support for conclusions postal dialogue is crucial Consolidation of networks is best solution to safeguard future of Dutch postal market Parliament • Broad support for consolidation • Attention for postal operators that employ people with a distance to the labour market ACM (Authorit
Slide 6: Q3 2018 Results
Q3 2018 Results Nexive and Postcon are classified as discontinued operations, resulting in adjusted segment reporting. All financials are based on continuing operations except where noted. Key takeaways Business review Financial review Conclusion Q&A 6
Slide 7: Parcels
Parcels Continuing strong volume and revenue growth Revenue Underlying cash Volume growth Revenue mix operating income Spring Benelux (non-volume related) Q3 2018 €375m €28m 20% Logistics & other (non-volume related) Q3 2018 €375m International Q3 2017 €339m €31m Parcels (excluding Spring) – acceler
Slide 8: Engines for transformation: direct online connection with consumers
Engines for transformation Direct online connection with 4 million consumers E-fact #9 • 4 million Dutch people now have a personal PostNL account • # of accounts increases by approximately 20,000 each week • PostNL account enables us to create direct relationship with our end customers leading to b
Slide 9: Engines for transformation: further step in delivery options
Engines for transformation Further step in delivery options to support market growth E-fact #10 • Pilot for delivery within 2 hours for bol.com in Amsterdam • Next step in convenient shopping combined with sustainable delivery • Process based on state-of-the-art technology
Slide 10: Mail in the Netherlands
Mail in the Netherlands Improving run-rate of cost savings Revenue Underlying cash Total cost savings Addressed mail operating income volume decline Q3 2018 €371m €(1)m €16m 11.9% of which €11m in Mail in the (10.8% YTD) Netherlands Q3 2017 €395m €7m Key takeaways Q3 2018 • Volume decline mainly dri
Slide 11: €16m cost savings realised in Q3 2018 (€34m YTD)
€16m cost savings realised in Q3 2018 (€34m YTD) FY 2018 cost savings expected to be slightly below range of €50m - €70m Cost savings Q3 2018 Cost savings YTD (in € millions) Reduce staff • Implementation reduction of staff according to plan 56 Efficiency sorting and • Continuation roll-out adjusted
Slide 12: UCOI outlook 2018 confirmed
UCOI outlook 2018 confirmed Outlook 2018 • Adjusted segment reporting: Parcels (including Spring), Mail in the Netherlands and PostNL Other • Confident to achieve our outlook for FY 2018 underlying cash operating income • Revenue 2018 guidance PostNL adjusted to + low single digit (was: + mid single
Slide 13: Q3 2018 Results
Q3 2018 Results Nexive and Postcon are classified as discontinued operations, resulting in adjusted segment reporting. All financials are based on continuing operations except where noted. Key takeaways Business review Financial review Conclusion Q&A 13
Slide 14: Progress divestment Nexive and Postcon
Progress divestment Nexive and Postcon Strategic rationale Reporting and financial impact in Q3 2018 • In line with our strategy to be the postal and logistic • Nexive and Postcon classified as discontinued operations solutions provider and focus on our core markets in the • Result from discontinued
Slide 15: Financial highlights Q3 2018
Financial highlights Q3 2018 (in € millions) Q3 2017 Q3 2018 YTD 2017 YTD 2018 Reported revenue 630 638 1,943 1,978 Reported operating income 41 31 170 92 Restructuring related charges 9 (3) 17 0 Project costs, impairment PPE and settlements 2 3 24 Consolidation effect with discontinued operations (
Slide 16: Underlying (cash) operating income Q3 2018
Underlying (cash) operating income Q3 2018 (in € millions) 16 9 48 (2) 4 (8) 35 (6) (19) 29 2 23 (8) Underlying changes changes Underlying volume / autonomous cost Parcels other Underlying changes changes Underlying cash in in operating price / mix costs savings operating in in cash operating pensio
Slide 17: Results by segment Q3 2018 based on continuing operations
Results by segment Q3 2018 based on continuing operations Underlying Underlying cash Revenue operating income operating income (in € millions) Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Parcels 339 375 32 30 31 28 Mail in the Netherlands 395 371 20 7 7 (1) PostNL Other 18 17 (4) (8) (3) (4) Int
Slide 18: Statement of income
Statement of income (in € millions) Q3 2017 Q3 2018 YTD 2017 YTD 2018 Revenue 630 638 1,943 1,978 Operating income 41 31 170 92 Net financial expenses (10) (5) (31) (21) Results from investments in associates and joint ventures (5) Income taxes (6) (7) (27) (20) Profit from continuing operations 25
Slide 19: Net cash from operating and investing activities
Net cash from operating and investing activities (in € millions) Q3 2017 Q3 2018 YTD 2017 YTD 2018 Cash generated from operations 27 (14) 100 31 Interest paid (17) (17) (20) (21) Income taxes received / (paid) (3) 5 (65) (34) Net cash (used in)/from operating activities 7 (26) 15 (24) Interest / div
Slide 20: Coverage ratio pension fund further improved to 116.4%
Coverage ratio pension fund further improved to 116.4% Higher pension expense balanced in Other Comprehensive Income (in € millions) Q3 2018 113.4% 116.4% Return on plan assets in excess of interest 9 103.6% income Defined benefit obligation 0 Minimum funding requirement (1) Total pension 8 2016 201
Slide 21: Consolidated statement of financial position
Consolidated statement of financial position Redemption of GBP Eurobond of €223m in August (in € millions) 29 Sep 2018 29 Sep 2018 Intangible fixed assets 198 Consolidated equity (26) Property, plant and equipment 504 Non-controlling interests 3 Financial fixed assets 29 Total equity (23) Other curr
Slide 22: Q3 2018 Results
Q3 2018 Results Nexive and Postcon are classified as discontinued operations, resulting in adjusted segment reporting. All financials are based on continuing operations except where noted. Key takeaways Business review Financial review Conclusion Q&A 22
Slide 23: Confidence in achieving UCOI outlook 2018
Confidence in achieving UCOI outlook 2018 Satisfying Q3 2018 results Progress accelerating transformation Performance Q3 2018 • Satisfying Q3 2018 results in line with expectations Positive adjustment expected impact Significant Market Power • Expected financial impact related to ACM measures adjust
Slide 24: Expected development Q4 2018
Expected development Q4 2018 Average UCOI split 2013 - 2017 Attention points for Q4 2018 (in %) • Outlook underlying cash operating income 2018: between €160m and €190m (FY 2017 restated: €241m) • Underlying cash operating income Q4 2017 restated: €104m • One additional working day • FY 2018 cost sa
Slide 25: Q3 2018 Results
Q3 2018 Results Nexive and Postcon are classified as discontinued operations, resulting in adjusted segment reporting. All financials are based on continuing operations except where noted Key takeaways Business review Financial review Conclusion Q&A 25
Slide 26: Appendix
Q3 2018 Results Nexive and Postcon are classified as discontinued operations, resulting in adjusted segment reporting. All financials are based on continuing operations except where noted Appendix • Results by segment YTD • Underlying cash operating income YTD • Breakdown pension cash contribution a
Slide 27: Results by segment YTD 2018
Results by segment YTD 2018 Underlying Underlying cash (in € millions) Revenue operating income operating income YTD 2017 YTD 2018 YTD 2017 YTD 2018 YTD 2017 YTD 2018 Parcels 989 1,116 103 85 101 81 Mail in the Netherlands 1,279 1,195 93 54 52 22 PostNL Other 55 54 (13) (29) (16) (15) Intercompany (
Slide 28: Underlying (cash) operating income YTD 2018
Underlying (cash) operating income YTD 2018 (in € millions) 37 183 34 9 (29) (18) 137 (16) (44) 110 9 88 (31) Underlying changes changes Underlying volume / autonomous cost Parcels other Underlying changes changes Underlying cash in in operating price / mix costs savings operating in in cash operati
Slide 29: Breakdown pension cash contribution and expenses
Breakdown pension cash contribution and expenses (in € millions) Q3 2017 Q3 2018 Expenses Cash Expenses Cash Business segments 24 31 25 30 IFRS difference 3 7 PostNL 27 31 32 30 Interest 2 2 Total 29 34 29
Slide 30: Published by: PostNL NV
Published by: PostNL NV Prinses Beatrixlaan 23 2595 AK The Hague The Netherlands Additional information is available at postnl.nl Warning about forward-looking statements: Some statements in this presentation are ’forward-looking statements‘. By their nature, forward-looking statements involve risk