Postnl Nv · EURONEXT:PNL

Postnl Nv — Q1 2024 Earnings Presentation

24 slides from Postnl Nv's earnings presentation, May 6, 2024

  1. Slide 1: Q1 2024 Results

    Q1 2024 Results The Hague, the Netherlands 1 6 May 2024

  2. Slide 2: Additional information and forward-looking statements

    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

  3. Slide 3: Key takeaways Q1 2024

    Key takeaways Q1 2024 Outlook for 2024 confirmed Highlights Mail in the Netherlands • Parcel volumes up 4.6% • Negative result shows urgent need for transformation • domestic volumes resuming growth • Intention to deliver standard mail within two days, moving • continued strong growth from internati

  4. Slide 4: Change needed to keep postal network accessible, reliable and affordable

    Change needed to keep postal network accessible, reliable and affordable Changing needs of Strong volume decline Structural cost savings Deteriorating result consumers going forward • Less demand for next-day • Mail market in structural • 2014-23 > €500m cost savings • Tariff increases and cost deli

  5. Slide 5: Our strategy

    Our strategy Delivering distinctive customer and consumer experience to be the leading logistics and postal service provider in, to and from the Benelux region Strategic foundation Q1 progress digitalisation and ESG Be your favourite deliverer Parcels: Manage for Digitalisation, customers, consumers

  6. Slide 6: Q1 2024 performance

    Q1 2024 performance Normalised EBIT at €(9)m, improvement in free cash flow Key financial metrics (in € million) Q1 2023 Q1 2024 change Revenue 783 765 -2% Normalised EBIT 7 (9) Free cash flow (31) (7) Normalised comprehensive income 4 (8) Main drivers • Volume growth, but unfavourable shift in mix

  7. Slide 7: Parcels

    Parcels First signs of recovery in volume development Revenue Normalised Volumes Revenue mix EBIT in € million Q1 2023 Q1 2024 Q1 2024 €555m €2m 86m +4.6% Parcels NL and BE 360 369 Spring 116 125 Q1 2023 €561m €5m 82m* Logistics solutions and other services 72 73 Other / intercompany 14 (12) Parcels

  8. Slide 8: Parcels Q1 2024 normalised EBIT bridge

    Parcels Q1 2024 normalised EBIT bridge (in € million) Normalised EBIT Q1 2023 5 Revenue - volume 16 4.6% volume growth Revenue - mix (16) Unfavourable products/customers mix effects, also within domestic volumes Volume-dependent costs (11) Wage increases PostNL CLA, sector CLA, indexation for delive

  9. Slide 9: New facility with solar panels and energy storage

    New facility with solar panels and energy storage Committed to sustainable growth • 28th depot in Alpen aan den Rijn added to infrastructure to support future e-commerce growth • Almost 8,000m2, largest NLI in the Netherlands • Innovative solar panels and energy storage help to take pressure off loc

  10. Slide 10: Mail in the Netherlands

    Mail in the Netherlands Steep volume decline, further shift to non-24-hour mail and pressure from labour costs Revenue Normalised Volumes EBIT Q1 2024 €324m €(5)m 399m -12.5% Q1 2023 €349m €8m 456m Volume Revenue Costs • Overall volume decline of 12.5% • Stamp prices • Increase in labour costs follo

  11. Slide 11: Mail in the Netherlands Q1 2024 normalised EBIT bridge

    Mail in the Netherlands Q1 2024 normalised EBIT bridge (in € million) Normalised EBIT Q1 2023 8 Revenue - volume (28) 12.5% volume decline Revenue - mix (3) Related to further shift to non-24-hour mail and other mix effects Volume-dependent costs 6 Organic costs (7) Wage increases and other inflatio

  12. Slide 12: Cash flow improved

    Cash flow improved Q1 2023 Q1 2024 (in € million) Normalised EBIT 7 (9) Depreciation & amortisation 41 46 Capex (38) (26) Lower capex, FY assumption ~€110m Lease payments and related cash flow (19) (19) Change in working capital 24 (7) Includes phasing effects throughout the year Change in provision

  13. Slide 13: Solid balance sheet

    Solid balance sheet Balance sheet (in € million) 30 March 2024 30 March 2024 Intangible fixed assets 409 Consolidated equity 181 Property, plant and equipment 486 Non-controlling interests 2 Right-of-use assets 283 Total equity 183 Other non-current assets 41 Long-term debt 299 Other current assets

  14. Slide 14: Outlook 2024 confirmed

    Outlook 2024 confirmed Assumed trajectory main drivers Parcels Volume, in million items, indicative only 96 87 • 7% - 10% overall volume growth assumed, pace of growth increasing during the year 82 86 82 • first signs of recovery domestic volumes, trending to 2% - 4% FY growth Domestic 2023 • double

  15. Slide 15: Outlook 2024

    Outlook 2024 Operating environment remains volatile Majority normalised EBIT in Q4 Indicative only, in € million (in € million) 2023 2024 outlook 77 Normalised EBIT 92 80 – 110 Normalised comprehensive income 52 40 – 70 2023 2024 Free cash flow 52 0 – 40 18 7 (9) (11) • Capex is expected to be aroun

  16. Slide 16: Closing remarks

    Closing remarks To be the leading e-commerce and postal services provider in, to, and from Benelux area Parcels • Volume growth trending towards FY level as anticipated and an unfavourable shift in product and customer mix • Gaining momentum on actions to balance volume and value • Confidence in lon

  17. Slide 17: Q&A

    Q&A

  18. Slide 18: Appendix

    Appendix 1. Cumulative organic cost increases and price adjustments 2022-24 2. Results per segment Q1 2024 3. Revenue mix Parcels 4. Full reconciliation of income statement and EBITDA per segment 5. Free cash flow per segment Q1 2024 6. Profit and normalised comprehensive income

  19. Slide 19: Continued significant inflationary pressure on costs

    Continued significant inflationary pressure on costs Not fully mitigated by price adjustments (in € million) Organic cost increases 138 FY 2022 Organic cost increases 178 FY 2023 Organic cost increases ~155 FY 2024 Total organic cost increases ~470 Total price adjusments ~345 Cumulative price adjust

  20. Slide 20: Results per segment Q1 2024

    Results per segment Q1 2024 Revenue Normalised EBIT Margin (in € million) Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Parcels 561 555 5 2 0.9% 0.3% Mail in the Netherlands 349 324 8 (5) 2.2% -1.5% PostNL Other 60 63 (6) (6) Intercompany (187) (177) PostNL 783 765 7 (9) 0.9% -1.2% 20 PostNL Q1 20

  21. Slide 21: Revenue mix Parcels

    Revenue mix Parcels As of 2024 (in € million) Q1 2023 Q1 2024 Q2 2023 Q2 2024 Q3 2023 Q3 2024 Q4 2023 Q4 2024 FY 2023 FY 2024 Parcels 360 369 372 348 409 1,489 Spring 116 125 119 116 125 475 Logistics solutions and other 72 73 72 67 72 283 Other / intercompany 14 (12) (7) 3 3 13 Parcels 561 555 556

  22. Slide 22: Full reconciliation of income statement and EBITDA Q1 2024

    Full reconciliation of income statement and EBITDA Q1 2024 Income statement PostNL Parcels Mail in NL PostNL Other Eliminations (in € million) Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Total operating revenue 783 765 561 555 349 324 60 63 (187) (177) Other incom

  23. Slide 23: Free cash flow per segment Q1 2024

    Free cash flow per segment Q1 2024 (in € million) PostNL Parcels Mail in NL PostNL Other & Eliminations Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 EBITDA 48 24 24 22 14 (8) 10 10 Change in pensions (0) 0 0 0 0 - (0) (0) Change in provisions 4 9 1 (2) 3 11 0 (1) Change in working

  24. Slide 24: Profit and normalised comprehensive income PostNL

    Profit and normalised comprehensive income* PostNL (in € million) Q1 2023 Q1 2024 Operating income / EBIT 7 (21) Net financial expenses (1) (0) Results from investments in JVs/associates (0) 0 Income taxes (2) 2 Profit/(loss) from discontinued operations 1 (0) Profit 4 (19) Other comprehensive incom

PostNL — Q1 2024 Earnings Presentation on 6ix