Slide 1: First quarter 2023 results Analyst call
First quarter 2023 results Analyst call Philippe Dartienne, CEO a.i. Koen Aelterman, CFO a.i. May 5th, 2023
Slide 2: Investor presentation 1Q23 disclaimer and financial calendar
Investor presentation 1Q23 Interim financial report 1Q23 Financial Calendar Disclaimer 10.05.2023 This presentation is based on information published by bpost group in its First Quarter 2023 Interim Financial Report, made available on May 4th, 2023 at 5.45pm CET on bpostgroup.com/investors. This inf
Slide 3: Compliance review of services provided to the Belgian State
Compliance review of services provided to the Belgian State • bpostgroup decided to extend the compliance review of the press concessions to other tenders and public contracts with the Federal Government. Preliminary results of ongoing reviews revealed that (i) margins on certain services provided t
Slide 4: Update on Press Concessions
Update on Press Concessions 2023 • In November, the existing concession (2016 – 2020) was further extended to end 2023 at the same terms as in previous years. The process of submission of concession the extension to the European Commission for approval under State aid rules is progressing, following
Slide 5: Highlights of 1Q23
Highlights of 1Q23 1Q23 Performance slightly exceeding plan. Challenging macro-economic conditions mitigated by strong parcels volumes, price increases and continued focus on productivity and cost control. Group operating Belgium E-Logistics Eurasia E-Logistics N. Am. income € 1,048.9m € 63.7m € 7.8
Slide 6: Key financials 1Q23
Key financials 1Q23 1Q23 € million Reported Adjusted1 1Q22 1Q23 1Q22 1Q23 D% 1 Amortization and impairments of Total operating income 1,038.5 1,048.9 1,038.5 1,048.9 1.0% intangibles recognized during PPA are adjusted, leading to Operating expenses 878.1 898.1 878.1 898.1 2.3% increase in EBIT (€ +3
Slide 7: Strong Parcels momentum in a challenging market
Strong Parcels momentum in a challenging market 1Q23 – Belgium Mail pricing mitigating volume decline Belgium revenues, € million Domestic Mail Parcels Belgium Stable operating income from: Parcels Belgium revenues up € +14.8m (+13.9%): +9% 1Q22 556.6 • € -28.1m volume (-8.8% underlying volume decli
Slide 8: Top-line growth and continued productivity improvement partly mitigate inflation of payroll costs
Top-line growth and continued productivity improvement 1Q23 – Belgium partly mitigate inflation of payroll costs € million Belgium 1Q22 1Q23 D% Key takeaways 1Q23 Transactional 194.7 195.1 0.2% Advertising 48.0 45.3 -5.6% • € -6.25m impact in other operating income, reflecting preliminary Press 85.7
Slide 9: Continued growth at Radial Europe and Active Ants and higher cross-border revenues
Continued growth at Radial Europe and Active Ants and higher 1Q23 – E-Log. Eurasia cross-border revenues from recent customer wins and IMX integration E-Logistics Eurasia revenues, € million E-commerce logistics Cross-border Revenues up € +6.7m (+10.3%): Revenues up € +13.9m (+18.9%) mainly from: 1Q
Slide 10: Top-line growth offset by higher payroll costs and expansion-related expenses
Top-line growth offset by higher payroll costs and 1Q23 – E-Log. Eurasia expansion-related expenses € million E-Logistics Eurasia 1Q22 1Q23 D% Key takeaways 1Q23 E-commerce logistics 65.2 71.9 10.3% Cross-border 73.5 87.4 18.9% • Total operating income up € +22.0m (+15.3%) Intersegment and other 5.2
Slide 11: Revenue development impacted by economic softness, market over-capacity and Amazon insourcing
Revenue development impacted by economic softness, 1Q23 – E-Log. N. Am. market over-capacity and Amazon insourcing E-Logistics N. America revenues, € million E-commerce logistics Radial NA revenues (m$) Revenues down € -6.0m (-1.7% or in perspective -5.8% at constant exchange rate) 1Q22 342.4 -4% Lo
Slide 12: Resource alignment and productivity gains protect margins in challenging market conditions
Resource alignment and productivity gains protect margins 1Q23 – E-Log. N. Am. in challenging market conditions € million E-Logistics North America 1Q22 1Q23 D% Key takeaways 1Q23 E-commerce logistics 342.4 336.4 -1.7% Intersegment and other 1.1 2.2 101.8% • Total operating income down € -4.9m (-1.4
Slide 13: Continued FTE reduction mitigates the cost pressures
Continued FTE reduction mitigates the cost pressures 1Q23 – Corporate € million Corporate 1Q22 1Q23 D% Key takeaways 1Q23 External operating income 0.8 2.5 223.4% Intersegment operating income 100.2 107.3 7.0% • External revenues up € +1.8m mainly from building sales Total operating income 101.0 109
Slide 14: Positive change in working capital offsets last year's sale of bpost bank
Positive change in working capital offsets last year’ sale of bpost bank. 1Q23 Capex in line with guidance. € million - Adjusted 1Q22 1Q23 D Cash flow from operating activities before Δ in WC and provisions 177.9 149.9 -28.0 1 Change in working capital and provisions -4.4 120.4 124.8 2 Cash flow fro
Slide 15: EBIT guidance withdrawn despite strong performance in 1Q23
EBIT guidance withdrawn despite strong performance in 1Q23 Outlook FY23 Ongoing process to get clear and exhaustive view of the financial impacts to reinstate as soon as possible an updated guidance for 2023 • On February 23, 2023 bpostgroup presented its financial guidance for 2023 with an adjusted
Slide 16: Additional info
Additional info
Slide 17: Adjusted vs. reported Cash Flow Statement
Adjusted vs. reported Cash Flow Statement 1Q23 € million Reported Adjusted 1Q22 1Q23 D 1Q22 1Q23 D Cash flow from operating activities before Δ in WC and provisions 177.9 149.9 -28.0 177.9 149.9 -28.0 Change in working capital and provisions -5.6 80.7 86.3 -4.4 120.4 124.8 1 Cash flow from operating
Slide 18: Balance Sheet
Balance Sheet 1Q23 € million € million Assets Dec 31, 2022 Mar 31, 2023 Equity and Liabilities Dec 31, 2022 Mar 31, 2023 Property, Plant and Equipment 1,398.9 1,420.1 Total equity 1,065.4 1,096.7 Intangible assets 855.8 834.8 Interest-bearing loans & borrowings 1,488.2 1,493.1 Investments in associa
Slide 19: Financing Structure & Liquidity
Financing Structure & Liquidity 1Q23 € million € million Available Liquidity Dec 31, 2022 Mar 31, 2023 External Funding Dec 31, 2022 Mar 31, 2023 Ca sh & c a sh eq u iv a l en ts 1,051.0 1,189.0 L o n g -term 650.0 650.0 1 Cash in network 143.9 144.8 Long-term bond (1.25% - 07/2026) 650.0 650.0 Tran
Slide 20: Key contact
Key contact Antoine Lebecq Head of Investor Relations Email: antoine.lebecq@bpost.be Direct: +32 (0) 2 276 29 85 Mobile: +32 (0) 471 81 24 77 Address: bpostgroup, Boulevard Anspach 1, 1000 Brussels, Belgium 20