Ctt - Correios De Portugal Sa · EURONEXT:CTT
Ctt - Correios De Portugal Sa — Ctt Correios Portgl — Q3 2024 Earnings Presentation
22 slides from Ctt - Correios De Portugal Sa's earnings presentation, Oct 30, 2024
Slide 1: 29 October 2024
29 October 2024 z= — 7 2 @ e c2e oo 2 aU ¢ = a2 eg omen vee c= —_— WY EES wu N =o2 uo
Slide 2: Disclaimer
Disclaimer DISCLAIMER This documenthas been prepared by CTT ~ Correios de Portugal, S.A. (the "Company" or "CTT") exclusively for use during the presentation of the 9M24results. Asa consequence thereof, this documentmay not be disclosedor published, nor used by any other person or entity, for any ot
Slide 3: Operational review
y Operational review
Slide 4: Progression towards targets and FS normalising
Progression towards targets and FS normalising Overview Logistics • Express & Parcels • • • • • Mail & Other • • Bank and Financial Services • Financial Services • • • Bank • • • ∆ ∆ • 1Excludes specific items 2Includes Express & Parcels and Mail & Other 3Recurring RoTE, cumulative, excluding specif
Slide 5: Continued volume growth in E&P Iberia
Continued volume growth in E&P Iberia Express & Parcels Ready for a very strong peak season in 4Q24
Slide 6: Growth is driving scale and margin expansion
Growth is driving scale and margin expansion Express & Parcels 8.7% 7.0% 6.9% 7.4% 6.8% 5.6% 1.0% Volume growth underpinning operational leverage
Slide 7: Price and mix offsetting light, albeit improving, volumes
Price and mix offsetting light, albeit improving, volumes Mail & Other 4Q24 to benefit from more working days (+6.8% y.o.y)
Slide 8: 3Q24 impacted by increased backlog from public admin
3Q24 impacted by increased backlog from public admin Mail & Other +1.9% 100.7 1.431 95.1 90.8 89.1 89.2 80.9 82.4 1.30 1.29 1.21 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Jul-24 Aug-24 Sep-24 Oct-24 We are observing a recovery in volumes in October 1Provisional data until 23 October that may suffer adjustm
Slide 9: Inflation, elections and lower FS drove expenses, notwithstanding cost cutting
Inflation, elections and lower FS drove expenses, notwithstanding cost cutting Mail & Other ∆ ∆ ∆
Slide 10: Cost efficiency programme ongoing with expected results in 2024 and onwards
Cost efficiency programme ongoing with expected results in 2024 and onwards Mail & Other • • • • • •
Slide 11: Increase in ceilings driving strong recovery in public debt placements
Increase in ceilings driving strong recovery in public debt placements Financial Services 1Total debt placements in 2019, 2020, 2021 and 2022 were €3.9b, €3.8b, €4.4b and €8.1b, respectively. Figures presented in chart correspond to the quarterly average in those years.
Slide 12: Improved client engagement by BCTT driving resources
Improved client engagement by BCTT driving resources Bank • • • 1Retail Deposits, consolidated accounts; 2Net of impairments; 3Consolidated contribution; 4Cumulative; 5Deposits and deposit-like instruments; information from Banco de Portugal
Slide 13: Record RoTE in Banco CTT, in line with CMD22 targets
Record RoTE in Banco CTT, in line with CMD22 targets Bank ∆ ∆ ∆ 1Cumulative; 2Recurring RoTE, cumulative, excluding specific items and normalized assuming a tangible equity of 15% of average RWAs, compatible with the CMD 2022 targets; Under the current capital structure the RoTE is 9.6% for 9M24. 3B
Slide 14: af | | Hh i i ie : :
i af | | Hh i i ie : : HT , ie | Hi) MUA EAT Sheer er
Slide 15: Consolidated EBIT and FCF should recover with improving debt placements
Consolidated EBIT and FCF should recover with improving debt placements Financial Review 1Excluding Specific items; 2Excluding Specific items, depreciation & amortisation
Slide 16: E&P revenues growing 44% on 9M24
E&P revenues growing 44% on 9M24 Financial Review ∆ ∆ ∆ ∆ A very strong 2024 peak season expected in E&P 1Excluding Specific items 2Including Central Structure
Slide 17: Continued focus on cost reduction lessens the impact of inflation and stronger activity
Continued focus on cost reduction lessens the impact of inflation and stronger activity Financial Review ∆ ∆ ∆ ∆ • • • • 1Excluding Specific items; 2Including Central Structure
Slide 18: EBIT penalised by inflation and FS performance, which is improving with the new ceilings
EBIT penalised by inflation and FS performance, which is improving with the new ceilings Financial Review ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ Further cost-cutting initiatives against a backdrop of lower volumes and cost inflation 1Excluding Specific items; 2Including Central Structure;
Slide 19: Net debt reflects primarily dividends paid and SBB, while FCF should improve in 4Q24
Net debt reflects primarily dividends paid and SBB, while FCF should improve in 4Q24 Financial Review 1Impairments, provisions and IFRS 16 affecting EBITDA; 2Only financial debt presented in the table; it does not include net employee benefits of €129.7m as at 30 September 2024; 3The change in net l
Slide 20: Outlook & Final remarks
Outlook & Final remarks
Slide 21: Reiterating guidance based on strong outlook for 4Q24
Reiterating guidance based on strong outlook for 4Q24 Outlook
Slide 22: Investor Relations
29 October 2024 Investor Relations Phone: +351210 471087 E-mail: investors@ctt.pt ctt.pt