Ctt - Correios De Portugal Sa · EURONEXT:CTT
Ctt - Correios De Portugal Sa — CTT - Correios de Portugal — Q1 2021 Earnings Presentation
30 slides from Ctt - Correios De Portugal Sa's earnings presentation, May 6, 2021
Slide 1: 1Q21 Results Presentation
1Q21 ctt Results Presentation Committed to deliver 6 May 2021
Slide 2: Disclaimer
fle. CEE | tq2thicHucHTs 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 first quarter 2021 results. As a consequence thereof, this documentmay notbe disclosed or published, nor used b
Slide 3: Committed to deliver
ctt Committed to deliver
Slide 4: Record quarterly parcels performance boosts group revenues and profits
fle. Ctt | tq2tHicuicHts 4 Record quarterly parcels performance boosts group revenues and profits pi ee } [= Revenues growth ] Recordrevenues Resilient business Resilient mail FS&Rremainsa acceleratesto performance for modelandimproving revenues, as strong strong contributorto +14.1% inthe quarter,
Slide 5: Significant revenues growth, driven by parcels, leads to profitability expansion
pect 1921 HIGHLIGHTS . Significant revenues growth, driven by parcels, leads to profitability expansion Express & Parcels Banco CTT Mail & other? Recurring Recurring Recurring Recurring Revenues EBIT Revenues EBIT Revenues EBIT Revenues EBIT €63.4m €2.5m €21.2m €1.4m €108.6m €4.9m €12.1m €6.2m (+70.
Slide 6: A quarter of continued investment and expansion of CTT's products and services offer
ft. Cit tq2tHicHuicHts A quarter of continued investment and expansion of CTT’s products and services offer + AGovernmental working group has been createdto carry out an analysis of the Postal Act and of the Universal Service requirements for the new concession contract + CTTelectedas a Trusted Bran
Slide 7: Banco CTT has established a long-term partnership with Sonae Financial Services
fle. Cit tq2tHicHuicHts | Banco CTT has established an important long-term partnership with Sonae Financial Services Banco CTT has become the lender for the Cartdo Universo credit book A Cartdo Universo overview: More than 850k clients and market share higher than 13% Close to 1 billion transactions
Slide 8: Record performance by Express & Parcels
fle. CEE | tq2thicHucHTs Record performance by Express & Parcels, as CTT’s investments in e-commerce infrastructure continue to meet strong demand, also spurred by the lockdown restrictions Express & Parcels volumes million items; % change vs. prior year Express & Parcels volumes in Portugal stabili
Slide 9: Banco CTT activity remained resilient despite lockdown restrictions
pect 1Q21HIGHLIGHTS 5 Banco CTT activity remained resilient, despite the lockdown restrictions impact on the points of sale Banco CTT S.A.—business volumes evolution € million except otherwise indicated Mortgage loans+ Customer deposits & Off-Balance sheet savings 1) Customer deposits Off-Balance sh
Slide 10: Mail highlights
Cte = 1021HIGHLIcHTs € million; % change vs. prior year Ordinary mail pressured byreduced activity of large corporate clients, suchas utilities, banks, telecoms and public administration 10.4 (415.2%) Internationalinbound mail 10.1 (+3.3%) International outbound mail 10 Better pricingand mixmore tha
Slide 11: Solid performance by Financial Services & Retail
pect 1921 HIGHLIGHTS a Solid performance by Financial Services & Retail, considering the challenging environment for high-street retail, as a result of the restrictions imposed by the state of emergency Public debt placements € million; % change vs. prior year » Year-on-year decline stems from the f
Slide 12: Financials
Pe. ctt _ Financials dS -. 4 €Za ra vssa entrega é total . i: Committed to deliver
Slide 13: Robust revenues growth led to improvement in operational leverage
fle. Ctt —rinanciats The robust revenues growth led to substantial improvement in operational leverage and meaningful increases in all profitability metrics Key financialindicators € million; % change vs. prior year 1919 1Q20 1Q21) = =A%19/21 = =A%20/21 Revenues* 176.9 179.9 205.3 16.1% 14.1% Operat
Slide 14: Extraordinary performance by Express & Parcels drove strong revenues expansion
fle. ctt —rinanciats 14 Extraordinary performance by Express & Parcels, benefiting also from the lockdown impacts, drove strong revenues expansion Revenues? € million; % change vs. prior year Revenues? breakdown +14.1% 426.1 SET 205.3 0.9 179.9 — -1.6 —— —— 1920 Mail & other AE&P ABancoCTT AFS&Retai
Slide 15: Operating costs increased mostly in parcels
fle. ctt —rinanciats 15 Operating costs increased mostly in parcels, as a direct result of the substantial growth in volumes Operating costs+ Operating costs! breakdown € million; % change vs. prior year € million; % change vs. prior year; % of total +12.9% +19.3 +0.9 40.3 176.3 [1% | Pl Staff — 89.
Slide 16: EBIT margin increased due to operational leverage
pect EBIT margin increased as a result of the expanding operational leverage in Express & Parcels and Banco CTT FINANCIALS Recurring EBIT+ € million +62.2% EBITDA? contribution: +€5.3m +6.9 15.0 9.3 1Q20RecurringEBIT Mail & other? AExpress & Parcels ABanco CTT AFS &Retail ADepreciation 1Q21 Recurrin
Slide 17: Own cash increased by c.€10m in the quarter
fle. ctt —rinanciats 17 Own cashincreased by c.€10m in the quarter 1Q21 Cash flow 31 March 2021 Net financial debt? € million; impact on cash flow vs. prior year € million : (+) Cash & cash equivalents 558.6 Non-cash items? [50 (-1.5) i (-) Net Financial Services & other payables 185.5 Specific item
Slide 18: Continued acceleration of digital initiatives; FY21 EBIT outlook
ctt —sinanciats 18 Continued acceleration of the digital initiatives will further strengthen our competitive position The COVID-19-related uncertainty is gradually fading away Given the above-mentioned dynamics, CTT now expects to achieve around €60m in EBIT inFY21
Slide 19: Committed to deliver
ctt Committed to deliver
Slide 20: Key balance sheet detail March 2021
APPENDIX: pect Key Balance sheet detail 31 March 2021 Balance sheet € million; % change vs. 31 Dec 2020 2,967 2,967 1 Fixed tangible Equity anes assets Other 267 liabilities (+4.0%) 363 Other assets | eye) Employee benefits 78 Employee benefits taxcredits pa css») oO Financial Services payables Cash
Slide 21: Express & Parcels: exceptional growth of parcels volumes and revenues
fle. ctt — aPpennix 21 Exceptional growth of parcels volumes and revenues provides a considerable boost to profitability Revenues EBITDA12 EBIT2 Consolidated view; € million; % change vs. prior year € million € million » » Portugal €35.1m (+43.8%) w g 5.5 4.0 os Parcels €30.6m (+61.8%) $e Cargo €2.5
Slide 22: Banco CTT is starting to benefit from operational leverage
pect APPENDIX 22 Banco CTT is starting to benefit from significant operational leverage, as the fixed-cost infrastructure is largely in place Revenues EBITDA? EBIT € million; % change vs. prior year € million % change vs. prior year € million; % change vs. prior year 48.7% 21.2 _.by type: +30.6% +19
Slide 23: Banco CTT cost of risk remains low while capital and liquidity are ample
fle. cit = aPrennix Banco CTT cost of risk remains low while capital and liquidity are ample 31 March 2021 Banco CTT Balance Sheet Loans b e Non-performing exposures 2 € million; % change vs. 31 Dec 2020 oO y typ oO P gexp 40.8 Other 29 2,113 2,113 27.4 Other 2.5 Cash & cash 363 ey equivalents 341%
Slide 24: Mail profitability impaired by atypical volumes decline
fle. ctt = aprenvix Mail profitability continues to be impaired by the atypical volumes decline, exacerbated by the lockdown measures Revenues + EBITDA2 EBIT € million; % change vs. prior year € million €million Transactional €92.5m (-2.5%) -8.0% -10.0% 15.4 4.7 Advertisii €4.3m (-16.0%) . Ivertisin
Slide 25: Financial Services & Retail comparison impacted by Jan-20 placements
fle. ctt — aPpennix 25 Financial Services & Retail comparison impacted by the Jan-20 public debt placements and the lockdown effects Revenues EBITDA? EBIT € million; % change vs. prior year € million € million -15.6% -14.8% 7.3 7.2 Savings & insurance €6.8m (-21.8%) 6.2 6.2 Money orders €1.5m (-2.6%
Slide 26: Consolidated Income statement
fle. ctt = aprenvix Consolidated Income statement 26 Income statement Reported with SEIKO Gruss €milon equity method 1920 1Q21 1920 1Q21 Revenues 179.9 205.3 164.7 188.3 Operating costs 156.2 176.3 142.5 161.7 of which Impairments & provisions 2.8 2.4 1.2 0.9 EBITDA 23.7 29.1 22.2 26.6 Depreciation
Slide 27: Consolidated Balance sheet
fle. ctt = aprenvix Consolidated Balance sheet Balance sheet Reported With Banco CTT under million equity method 31-Dec-20 31-Mar-21 31-Dec-20 31-Mar-21 Non-current assets 1,984.3 1,988.5 638.8 649.3 Current assets 910.6 978.1 484.0 445.0 Assets 2,894.9 2,966.6 1,122.8 1,094.2 Equity 150.3 159.0 150
Slide 28: Consolidated Cash flow statement
fle. ctt = aprenvix 28 Consolidated Cash flow statement Cash flow Reported With Banco CTT under equity method Emilion 1Q20 1Q21 421/20 1Q20 1Q21 421/20 EBITDA 23.7 29.1 +5.3 22.2 26.6 +44 Non-cash items -3.5 -5.0 -15 -4.9 -6.3 14 Specific items affecting EBITDA -0.0 0.8 +0.9 -0.0 -1.0 -1.0 Capex -5.
Slide 29: Specific items with a positive impact on the 1Q21 P&L
pect APPENDIX Specific items with a positive impact on the 1Q21 P&L Specific items €million Reported 1Q20 1Q21 Recurring EBIT 9.3 15.0 Specificitems 0.0 -0.8 Revenues -0.6 -2.2 Staff costs 0.0 o1 ES&S & other op. costs 0.6 13 EBIT 9.3 15.9 Capital gain generated by the sale of public debt securities
Slide 30: Investor Relations contacts
CTT Correios de Portugal, S.A. Investor Relations Contacts: Phone: +351 210471 087 Froma E-mail: investors@ctt.pt parcel to whatever you want ctt.pt Froma parcel to whatever you wish for oy, gi Froma parcel to whatever you dream of We connect people and companies
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