Slide 1: Fourth quarter 2021 results Analyst call
Fourth quarter 2021 results Analyst call Dirk Tirez, CEO Koen Aelterman, CFO a.i. February 25th, 2022
Slide 2: Disclaimer and financial calendar
Investor presentation 4Q21 Interim financial report 4Q21 Financial Calendar Disclaimer 17.03.2022 This presentation is based on information published by bpost group in its Fourth Quarter 2021 Interim Financial Report, made available on February 24th, 2022 at 5.45pm CET on bpostgroup.com/investors. T
Slide 3: Highlights of FY21
Highlights of FY21 FY21 bpost delivered on its promises with results in line with twice increased guidance Topic Results Last outlook for 2021 Group adjusted € 349.3m Adjusted EBIT EBIT 8.1% EBIT margin above € 340m Mail & Retail € 193.9m Adjusted EBIT margin 9.7% EBIT margin between 9-10% Parcels &
Slide 4: Delivering on 2021 Management priorities
Delivering on 2021 Management priorities Management Successful end of year peak in Belgium • Steep margin improvement and almost doubled EBIT at Parcels B2X • Nearly double-digit improvement on D+1 quality; backlog on average at 1/3rd or lower compared to 2020 peak • Reduced 2nd wave by 80%; 40% red
Slide 5: Strong executive leadership team has been built to execute the transformation
Strong executive leadership team has been built to execute the Management transformation Dirk Tirez Jean Muls Kathleen Van Beveren Henri de Romrée Group CEO CEO Belgium CEO E-Logistics Eurasia CEO E-Logistics North America • 18 years at bpost - Strategy, M&A, • VP Air Hubs EU at FedEx EU • Head of P
Slide 6: Highlights of 4Q21
Highlights of 4Q21 4Q21 As promised, bpost delivers a strong end of the year driven by successful end-of-year peak execution in Belgium and in North America Group operating Mail & Retail Parcels & Logistics Parcels & Logistics income Eurasia N. Am. € 1,299.7m € 31.3m € 22.2m € 46.0m up 8,8% 6.0% EBI
Slide 7: Key financials 4Q21
Key financials 4Q21 4Q21 € million Reported Adjusted1 4Q20 4Q21 4Q20 4Q21 %↑ 1 Amortization and impairments of intangibles recognized Total operating income 1,194.4 1,299.7 1,194.4 1,299.7 8.8% during PPA are adjusted, Operating expenses 1,081.0 1,148.7 1,081.0 1,148.7 6.3% leading to increase in EB
Slide 8: Mail price increase offsets volume decline, rebound in COVID communication and recovery in retail
Mail price increase offsets volume decline, rebound in COVID 4Q21 – M&R communication and recovery in retail activities M&R external operating income, € million Domestic Mail Proximity and 4Q20 456.6 Operating income down € -1.1m: convenience retail • € -25.0m volume (-8.9% network underlying volume
Slide 9: Successful EOY peak execution mitigating lower volume driven intersegment income and higher payroll costs
Successful EOY peak execution mitigating lower volume driven 4Q21 – M&R intersegment income and higher payroll costs € million Mail & Retail External operating income 4Q20 456.6 4Q21 465.9 %↑ 2.0% Key takeaways 4Q21 Transactional 192.9 190.0 -1.5% • Total operating income down € -4.6m (-0.9%) Advert
Slide 10: Anticipated decline in revenue from continued pressure on Asian cross-border sales
Anticipated decline in revenue from continued pressure on 4Q21 – PaLo Eurasia Asian cross-border sales and parcels volume below LY’s lockdown peak PaLo Eurasia external operating income, € million Parcels BeNe Parcels B2X volumes Cross-border Total Parcels BeNe revenue down 4Q21: +55% vs. pre-pandem
Slide 11: Successful execution of EOY peak in Parcels compensates EBIT decline
Successful execution of EOY peak in Parcels compensates 4Q21 – PaLo Eurasia EBIT decline from lower Asian sales and e-com logistics expansion € million Parcels & Logistics Europe and Asia External operating income 4Q20 311.8 4Q21 281.6 %↑ -9.7% Key takeaways 4Q21 Parcels BeNe 168.1 151.2 -10.0% • Al
Slide 12: Continued strong revenue development driven by Radial's new customers
Continued strong revenue development driven by 4Q21 – PaLo N. Am. Radial’s new customers launched in 2021 PaLo North America external operating income, € million E-commerce logistics Radial NA revenues YoY increase of +35.0% (+28.6% at in perspective 4Q20 422.5 constant exchange rate). 528 407 Reven
Slide 13: Sharp EBIT increase driven by new customer wins and strong execution during peak
Sharp EBIT increase driven by contribution of new customers 4Q21 – PaLo N. Am. wins and strong execution during peak € million Parcels & Logistics North America External operating income 4Q20 422.5 4Q21 545.2 %↑ 29.0% Key takeaways 4Q21 E-commerce logistics 404.0 545.2 35.0% • Total operating income
Slide 14: Corporate EBIT in line with last year
Corporate EBIT in line with last year 4Q21 – Corporate € million Corporate External operating income 4Q20 3.6 4Q21 7.1 %↑ 99.6% Key takeaways 4Q21 Intersegment operating income 113.1 106.2 -6.2% • External revenues higher than last year by €+3.5m, from higher Total operating income 116.7 113.2 -2.9%
Slide 15: Strong operational cash flow impacted by timing of tax and social security payments
Strong operational cash flow impacted by the timing of tax and 4Q21 social security payments Reported ‐ € million 4Q20 4Q21 Delta Cash flow from operating activities before Δ in WC and provisions 64.7 137.3 72.6 1 Change in working capital and provisions 108.1 11.9 -96.3 2 Cash flow from operating a
Slide 16: New business unit structure
New business unit structure New Business Units Bundling our Belgium parcel activities with our Mail & Retail activities into one Belgium business unit A new business unit structure to • Recognize different strategic imperatives: transform Belgium, build E-Logistics Eurasia, grow E-Logistics North Am
Slide 17: New business unit structure: FY21 key financials
New business unit structure New Business Units FY21 key financials € million Belgium E-Logistics E-Logistics Corporate Eliminations Group Eurasia North America External operating income 2,250.8 611.5 1,453.9 18.9 0.0 4,335.1 Intersegment operating income 59.8 26.2 5.9 407.8 -499.7 0.0 Total operatin
Slide 18: 2022 management priorities: BE operations, cost reduction and e-commerce logistics growth
2022 management priorities Management BE operations, cost reduction and e-commerce logistics growth Improve operational efficiency within Belgian organization and initiate transformation into long-term sustainable business • Increase operational productivity through work reorganization of 120 distri
Slide 19: 2022 management priorities: customer centricity and ESG
2022 management priorities Management Group-wide priorities – customer centricity and ESG Move from a product delivery to a customer centric organisation • Develop, pilot and execute roadmap for transformation to customer centric organization at bpost by implementing agile at scale • Identify pools
Slide 20: Outlook for 2022 - Adjusted EBIT of €280-310m
Outlook for 2022 - Adjusted EBIT of € 280-310m1 Outlook FY22 Continuously investing in the group transformation while mitigating headwinds from wage pressure and inflation by cost reduction initiatives, productivity gains and further growth in omni-commerce activities Belgium E-Logistics E-Logistics
Slide 21: Additional info
Additional info
Slide 22: Balance Sheet
Balance Sheet 4Q21 € million € million Assets Dec 31, 2020 Dec 31, 2021 Equity and Liabilities Dec 31, 2020 Dec 31, 2021 PPE 1,138.0 1,263.5 Total equity 583.8 885.3 Intangible assets 771.7 797.0 Interest-bearing loans & borrowings 1,443.2 1,377.7 Investments in associates and joint ventures 0.1 0.0
Slide 23: Financing Structure & Liquidity
Financing Structure & Liquidity 4Q21 € million € million Available Liquidity Dec 31, 2020 Dec 31, 2021 External Funding Dec 31, 2020 Dec 31, 2021 Ca sh & c a sh eq uiva lents 9 4 8 .1 9 0 7.5 L o ng -ter m Cash in network 167.2 149.9 Long-term bond1 (1.25% - 07/2026) 650.0 650.0 Transit accounts 32.
Slide 24: Full year 2021 figures
Full year 2021 figures
Slide 25: Key financials FY21
Key financials FY21 FY21 € million Reported Adjusted1 FY20 FY21 FY20 FY21 %↑ 1 Amortization and impairments of intangibles recognized Total operating income 4,154.6 4,335.1 4,154.6 4,333.7 4.3% during PPA are adjusted, Operating expenses 3,635.5 3,729.5 3,635.5 3,729.5 2.6% leading to increase in EB
Slide 26: Results by segment FY21
Results by segment FY21 FY21 € million M&R PaLo Eurasia PaLo N. Am. Corp Eliminations Group External operating income 1,783.1 1,079.3 1,453.9 18.9 0.0 4,335.1 Intersegment operating income 222.8 16.9 5.9 407.8 -653.4 0.0 Total operating income 2,005.9 1,096.2 1,459.8 426.7 -653.4 4,335.1 Operating e
Slide 27: M&R FY21
M&R FY21 FY21 – M&R € million Mail & Retail FY20 FY21 %↑ External operating income 1,736.1 1783.1 2.7% Transactional 725.2 736.7 1.6% Advertising 182.6 197.0 7.9% Press 339.1 338.8 -0.1% Proximity and convenience retail network 386.5 397.1 2.7% Value added services 102.7 113.5 10.4% Intersegment ope
Slide 28: Parcels & Logistics Europe and Asia FY21
Parcels & Logistics Europe and Asia FY21 FY21 – PaLo Eurasia € million Parcels & Logistics Europe and Asia FY20 FY21 %↑ External operating income 1,073.9 1,079.3 0.5% Parcels BeNe 547.9 561.7 2.5% E-commerce logistics 172.5 174.8 1.3% Cross-border 353.5 342.8 -3.0% Intersegment operating income 14.0
Slide 29: Parcels & Logistics North America FY21
Parcels & Logistics North America FY21 FY21 – PaLo N. Am. € million Parcels & Logistics North America FY20 FY21 %↑ External operating income 1,329.2 1,453.9 9.4% E-commerce logistics 1,246.4 1,411.7 13.3% International mail 82.8 42.2 -49.1% Intersegment operating income 6.8 5.9 -13.4% Total operatin
Slide 30: Corporate FY21
Corporate FY21 FY21 – Corporate € million Corporate FY20 FY21 %↑ External operating income 15.4 18.9 22.8% Intersegment operating income 375.2 407.8 8.7% Total operating income 390.6 426.7 9.3% Operating expenses 343.4 380.2 10.7% EBITDA 47.2 46.5 -1.4% Depreciation & Amortization 72.0 75.0 4.1% Rep
Slide 31: Cash Flow Statement FY21
Cash Flow Statement FY21 FY21 Reported ‐ € million FY20 FY21 Delta Cash flow from operating activities before Δ in WC and provisions 431.2 504.2 73.1 Change in working capital and provisions 137.0 -68.8 -205.7 Cash flow from operating activities excl. collected proceeds due to clients 568.2 435.5 -1
Slide 32: 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: bpost group, Centre Monnaie, 1000 Brussels, Belgium 32 4Q21 Analyst Presentation