Ctt - Correios De Portugal Sa · EURONEXT:CTT
Ctt - Correios De Portugal Sa — Ctt Correios Portgl — Q2 2024 Earnings Presentation
21 slides from Ctt - Correios De Portugal Sa's earnings presentation, Jul 30, 2024
Slide 1: We make our path fully committed to deliver
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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 1H24 results. As a consequence thereof, this documentmay notbe disclosed or published, nor used by any other person or entity, for any
Slide 3: Operational review
y Operational review
Slide 4: Strong execution in Express & Parcels driving revenue growth
Strong execution in Express & Parcels driving revenue growth Overview Logistics • Express and Parcels • • • • • Mail and Other • • Bank and Financial Services • Financial Services • • • • Bank • ∆ ∆ ∆ • • 1Excludes specific items 2Includes Express and Parcels and Mail and Other
Slide 5: Spanish volumes continue to show resilient very high growth
Spanish volumes continue to show resilient very high growth Express & Parcels 107.5% 110.7% 18.4% 13.9% 68.7% 14.0% 58.1% 12.8% 10.9% 36.7% 9.0% 0.5% E&P on path for another record year
Slide 6: Record E&P recurring EBIT margin in 2Q24
Record E&P recurring EBIT margin in 2Q24 Express & Parcels 59.0% 60.9% 36.7% 42.2% 27.9% 5.5% Growth in volumes is driving operational leverage
Slide 7: Mail price increases and mix are partially offsetting the fall in volumes
Mail price increases and mix are partially offsetting the fall in volumes Mail & Other Progression on cost cut programmes will support margins 1Excluding elections impact, revenues would decline by 2.1%, however there were -1.6% working days in 1H24 vs 1H23
Slide 8: Elections, inflation and lower FS activity drove expenses higher
Elections, inflation and lower FS activity drove expenses higher Mail & Other
Slide 9: Sequentially, subscriptions are increasing
Sequentially, subscriptions are increasing Financial Services 1total debt placement in 2019, 2020, 2021 and 2022 were €3.9b, €3.8b, €4.4b and €8.1b, respectively. Numbers presented in chart correspond to the quarterly average in those years.
Slide 10: Improved client engagement by BCTT driving business resources
Improved client engagement by BCTT driving business resources Bank • • 1Retail Deposits, consolidated accounts; 2Net of impairments; 3Consolidated contribution; 4Cumulative; 5Deposits and deposit-like instruments; information from Banco de Portugal
Slide 11: Growth in business volumes driving topline growth even with lower NIM
Growth in business volumes driving topline growth even with lower NIM Bank 1Cumulative; 2Recurring RoTE, cumulative and excluding specific items. Assuming a Tangible Equity of 15% of average RWAs RoTE would be 11.5% in 1H24; 3Banco CTT consolidation perimeter, excluding specific items;
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Slide 13: EBIT and FCF penalised by the abnormally low debt placements
EBIT and FCF penalised by the abnormally low debt placements 1Excluding Specific items; 2Excluding Specific items, depreciation & amortisation
Slide 14: E&P already accounts for 40% of consolidated revenues
E&P already accounts for 40% of consolidated revenues 1Excluding Specific items
Slide 15: Continued focus on cost reduction attenuates the impact of stronger activity
Continued focus on cost reduction attenuates the impact of stronger activity ∆ ∆ ∆ ∆ • • • • 1Excluding Specific items; 2Including Central Structure
Slide 16: EBIT generation to be more skewed to 2H24, as mentioned in our guidance
EBIT generation to be more skewed to 2H24, as mentioned in our guidance ∆ ∆ ∆ ∆ ∆ ∆ ∆ ∆ With normalised public debt, Recurring EBIT in Mail & Other would have been flattish 1Excluding Specific items; 2Including Central Structure;
Slide 17: Free cash-flow to improve throughout 2024
Free cash-flow to improve throughout 2024 1Impairments, provisions and IFRS 16 affecting EBITDA; 2Only financial debt presented in the table; it does not include net employee benefits of €126.8m as at 30 June 2024; 3The change in net liabilities of Financial Services and Banco CTT reflects the evolu
Slide 18: Outlook & Final remarks
Outlook & Final remarks
Slide 19: EBIT growth in 2024 penalised by debt placements taking longer to normalise
EBIT growth in 2024 penalised by debt placements taking longer to normalise, whilst E&P is outperforming 1Old division of business units used, for comparability purposes vs guidance disclosed in FY23 earnings.
Slide 20: Growing like no one in Iberian E&P
Growing like no one in Iberian E&P Outlook ✓ ✓ ✓ ✓ 1 1.8x net debt/EBITDA with Banco CTT equity accounted
Slide 21: Investor Relations
29 July 2024 Investor Relations Phone: +351 210 471087 E-mail: investors@ctt.pt ctt.pt