Postnl Nv · EURONEXT:PNL
Postnl Nv — Q3 2021 Earnings Presentation
31 slides from Postnl Nv's earnings presentation, Nov 8, 2021
Slide 1: Capturing growth, delivering value
Capturing growth, delivering value Q3 2021 Results The Hague － 8 November 2021
Slide 2: Additional information and warning about forward-looking statements
Additional information looking statements involve known and unknown risks, Use of non-GAAP information uncertainties and other factors that are outside of our control and Additional information is available at www.postnl.nl. Elements of In presenting and discussing the PostNL Group operating results
Slide 3: Key takeaways
Key takeaways FY 2021 outlook confirmed with normalised EBIT at €280m - €310m and free cash flow at €250m - €280m Q3 2021 normalised EBIT at €23m • Volume growth of 1.6% at Parcels; 6.4% compared with Q3 2020 when excluding the assumed non-recurring impact related to Covid-19; around 19% growth comp
Slide 4: Strategic business drivers
Q3 2021 Strategic business drivers 3
Slide 5: Value creation for attractive total shareholder returns
Value creation for attractive total shareholder returns To be the leading logistics and postal solutions provider in, to and from the Benelux region Strategic objectives Value creation model Help customers grow their business Parcels Manage for profitable growth Secure a sustainable mail business Ma
Slide 6: ESG - our licence to operate
ESG - our licence to operate Fully embedded in our strategy and business model Environmental Social Governance Improve environmental impact Realise full potential of our Transparent, responsible and people and act as a responsible accountable employer • Clean kilometres • Strengthen employee engagem
Slide 7: Ambitious plan to accelerate digital transformation
Ambitious plan to accelerate digital transformation Transformation of the core and innovation of our platform Transform our commercial Transform core logistics and Scale platform and digital engine operations business models • Simple and smart products • Fully data-driven supply chain • Data & insig
Slide 8: Business and financial performance
Q3 2021 Business and financial performance 7
Slide 9: Q3 performance impacted by adjusted VAT regulation
Q3 performance impacted by adjusted VAT regulation FY 2021 outlook confirmed with normalised EBIT at €280m - €310m and free cash flow at €250m - €280m Key financial metrics (in € million) Q3 2020 Q3 2021 change YTD 2020 YTD 2021 change Revenue 742 729 -2% 2,232 2,530 +13% Normalised EBIT 36 23 -37%
Slide 10: Impact Covid-19 and adjusted VAT regulation
Impact Covid-19 and adjusted VAT regulation (in € million) Normalised EBIT Q3 2020 36 Q3 delta assumed non-recurring impact related to Covid-19 3 €(11)m Parcels €14m Mail in the Netherlands €(3)m Parcels Q3 2021 (partly temporary) impact VAT changes -8 €(5)m Mail in the Netherlands Business developm
Slide 11: Parcels: Continued growth in Q3 2021
Parcels: Continued growth in Q3 2021 Revenue Normalised EBIT* Volumes Revenue mix in € million Q3 2020 Q3 2021 Q3 2021 €505m €27m 81m +1.6% Parcels Netherlands 321 329 Spring 101 95 Q3 2020 €490m €49m 79m Logistics solutions and other 86 95 Eliminations (18) (14) * No non-recurring impact related to
Slide 12: Parcels Q3 2021 normalised EBIT bridge
Parcels Q3 2021 normalised EBIT bridge Margin temporary depressed by expected step-up in network expansion combined with relatively low volumes (in € million) Normalised EBIT Q3 2020 49 Parcels Netherlands 1.6% volume growth mainly driven by domestic volumes, partly Revenue - volume 7 offset by lowe
Slide 13: Growth trend in parcel volumes to continue
Growth trend in parcel volumes to continue (in million) Q3 2020 Q3 2021 change (indicative only) 2021 vs 2020 Volume 79 81 1.6% Excluding volume assumed to be non-recurring and 76 81 6.4% related to Covid-19 Excluding international volumes impacted by VAT ~9% regulation Q3 2019 2019 March 2020 April
Slide 14: Margin development Parcels
Margin development Parcels Improving margin compared with pre-Covid-19 period due to structural better business performance Revenue and margin Parcels Step-down in Q3 2021 (indicative only, revenue in € million, margin in % ) • From high volumes during the (partial) lockdown period to low(er) volume
Slide 15: Solid performance at Mail in the Netherlands
Solid performance at Mail in the Netherlands Improvement in underlying substitution rate Revenue Normalised EBIT* Volumes Q3 2021 €345m €12m 430m +0.5% Q3 2020 €379m €4m 428m * Non-recurring impact related to Covid-19 assumed to be around €5m in Q3 2021 versus €(9)m in Q3 2020 Revenue development No
Slide 16: Mail in the Netherlands Q3 2021 normalised EBIT bridge
Mail in the Netherlands Q3 2021 normalised EBIT bridge (in € million) Normalised EBIT Q3 2020 4 Mail activities Revenue - volume 0 Volume growth 0.5% Revenue - price/mix 4 Positive price impact partly offset by a less favourable mix Organic costs -5 Mainly CLA-related Volume-dependent costs -4 16 Sa
Slide 17: Cash flow Q3 2021
Cash flow Q3 2021 Continuing strong cash flow performance (in € million) Q3 2020 Q3 2021 Normalised EBIT 36 23 Reversal normalisations 0 0 Depreciation & amortisation 36 37 -17 -41 Includes capacity-related investments and acceleration Capex of digitalisation Lease payments -16 -12 Change in working
Slide 18: Strong financial position
Strong financial position Adjusted net debt at €266m (in € million) 2 Oct 2021 2 Oct 2021 Intangible fixed assets 349 Consolidated equity 340 Property, plant and equipment 372 Non-controlling interests 2 Right-of-use assets 288 Total equity 342 Other non-current assets 48 Pension liabilities 70 Othe
Slide 19: 2021 outlook and guidance
Q3 2021 2021 outlook and guidance 18
Slide 20: 2021 outlook and other main financial indicators confirmed
2021 outlook and other main financial indicators confirmed (indicative only, in € million) 2021 outlook 2020 (9 August 2021) remarks Outlook including ~(30)-(35) for digital NEXT and increase in non-cash Normalised EBIT 245 280-310 pension expenses including ~(20)-(25) for digital NEXT and subject t
Slide 21: Normalised EBIT in Q4 2021
Normalised EBIT in Q4 2021 FY 2021 outlook confirmed with normalised EBIT at €280m - €310m and free cash flow at €250m - €280m Assumptions normalised EBIT Q4 2021 Normalised EBIT not evenly spread over the quarters (indicative only, in € million) • Extraordinary Q4 2020 with large impact assumed to
Slide 22: A strong business well positioned for further growth
A strong business well positioned for further growth To be the leading logistics and postal service provider in, to and from the Benelux region Delivering on our strategy in a challenging environment • Building on solid performance YTD 2021 and anticipating a busy peak season • Continuing trend in e
Slide 23: Q&A Q3 2021 Results
Q&A Q3 2021 Results → Deep-dive into PostNL’s new, fully automated, robotic parcel sorting centre to be scheduled in 2022 → Date to follow; you will be invited! 22
Slide 24: Appendix
Appendix Q3 2021 Results → Results by segment Q3 2021 and YTD 2021 → Revenue mix Parcels per quarter → Assumed non-recurring impact related to Covid-19 YTD 2021 → Result development by segment YTD 2021 → Adjusted net debt → Cash flow YTD 2021 23
Slide 25: Results by segment Q3 2021 and YTD 2021
Results by segment Q3 2021 and YTD 2021 Revenue Normalised EBIT Margin (in € million) Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Parcels 490 505 49 27 9.9% 5.3% Mail in the Netherlands 379 345 4 12 1.1% 3.5% PostNL Other 25 52 (17) (16) Intercompany (151) (172) PostNL 742 729 36 23 4.9% 3.1% YT
Slide 26: Revenue mix Parcels per quarter
Revenue mix Parcels per quarter (in € million) Q1 2020 Q1 2021 Q2 2020 Q2 2021 Q3 2020 Q3 2021 YTD 2020 YTD 2021 Parcels Netherlands 277 444 354 383 321 329 952 1,157 Spring 68 145 84 131 101 95 252 372 Logistics solutions and 81 102 92 100 86 95 259 298 other Eliminations (12) (30) (14) (26) (18) (
Slide 27: Assumed non-recurring impact related to Covid-19 YTD 2021
Assumed non-recurring impact related to Covid-19 YTD 2021 YTD normalised EBIT €216m, of which €74m assumed to be non-recurring result related to Covid-19 (in € million) Normalised EBIT YTD 2021 216 -38 €(24)m Parcels Netherlands Assumed non-recurring impact Parcels €(14)m Spring and Logistics Assume
Slide 28: Parcels YTD 2021 normalised EBIT bridge
Parcels YTD 2021 normalised EBIT bridge Up €41m compared with YTD 2020 (in € million) Normalised EBIT YTD 2020 134 Parcels Netherlands Revenue - volume 227 22.5% volume growth YTD 2021 Revenue - price/mix -17 Mainly a result of a less favourable mix -13 CLA increase, indexation of both own personnel
Slide 29: Mail in the Netherlands YTD 2021 normalised EBIT bridge
Mail in the Netherlands YTD 2021 normalised EBIT bridge Up €80m compared with YTD 2020 (in € million) Normalised EBIT YTD 2020 14 Mail activities Revenue - volume 21 Volume growth 3.6%, mainly driven by non-recurring Covid-19 related items, supported by (regular) elections and additional working day
Slide 30: Adjusted net debt
Adjusted net debt (in € million) 31 Dec 2020 2 Oct 2021 Short- and long-term debt 708 697 Long-term interest-bearing assets (27) (19) Cash and cash equivalents (651) (786) Net debt 31 (108) Pension liabilities 86 70 Lease liabilities (on balance) 294 341 Lease liabilities (off balance) 66 35 Deferre
Slide 31: Cash flow YTD 2021
Cash flow YTD 2021 (in € million) YTD 2020 YTD 2021 Normalised EBIT 105 216 Reversal normalisations -17 18 Book gain on sale of Cendris Depreciation & amortisation 125 108 One-time depreciation costs related to Sandd in 2020 -37 -90 Includes investments in acceleration of digitalisation and Capex ex