Ctt - Correios De Portugal Sa · EURONEXT:CTT
Ctt - Correios De Portugal Sa — Ctt Correios Portgl — Q1 2024 Earnings Presentation
21 slides from Ctt - Correios De Portugal Sa's earnings presentation, May 3, 2024
Slide 1: 1Q24 results presentation
2 May 2024 We make our path fully committed to deliver 1Q24 results presentation
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 1924 results. As a consequence thereof, this documentmay not be disclosed or published, nor used by any other person or entity, for any
Slide 3: Operational review
y Operational review
Slide 4: Market expansion and share gains in E&P and Banco CTT fuelling growth in 1Q24
Market expansion and share gains in E&P and Banco CTT fuelling growth in 1Q24 Overview • • • • • • • • ∆ ∆ ∆ ∆ 1Excludes specific items 2Includes Banco CTT and payments
Slide 5: Volumes in Spain close to peak season levels driving record growth of revenues
Volumes in Spain close to peak season levels driving record growth of revenues Express & Parcels 107.5% 110.7% 18.4% 13.9% 14.0% 58.1% 12.8% 10.9% 36.7% 0.5% E&P on path for another record year
Slide 6: Margin expansion driven by operational gearing
Margin expansion driven by operational gearing Express & Parcels 1Individual accounts; 2Excludes specific items
Slide 7: Price increases and mix are partially offsetting the fall in volumes
Price increases and mix are partially offsetting the fall in volumes Mail & Other Price increase of 9.49% in February still not fully reflected in the quarter
Slide 8: Elections drove expenses higher in this quarter
Elections drove expenses higher in this quarter Mail & Other
Slide 9: Abnormally weak quarter in 1Q24 in debt placements should revert to normal
Abnormally weak quarter in 1Q24 in debt placements should revert to normal Financial Services & Retail While public debt placements remain subdued, primarily due to strict limits, sales of healthcare plans are gaining traction 12022 and 1Q23 – 4Q23 are average monthly sales; Jan-April 2024 are actua
Slide 10: Profitability improving significantly with topline growth
Profitability improving significantly with topline growth Banco CTT 1”Banco CTT” reporting unit includes Payshop and other CTT payments; 2Cumulative; 3Recurring RoTE, cumulative and excluding specific items. Assuming a Tangible Equity of 15% of average RWAs RoTE would be 11.1% in 1Q24; 4Banco CTT co
Slide 11: Strong start of 2024 with better client engagement
Strong start of 2024 with better client engagement Banco CTT 1Retail Deposits, consolidated accounts; 2Net of impairments; 3Consolidated contribution; 4Cumulative
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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 more than a third of consolidated revenues
E&P already accounts for more than a third of consolidated revenues ∆ ∆ ∆ ∆ 1Excluding Specific items; 2Including Central Structure
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 ∆ ∆ ∆ ∆ 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 €122.2m as at 31 March 2024; 3The change in net liabilities of Financial Services and Banco CTT reflects the evol
Slide 18: Outlook & Final remarks
Outlook & Final remarks
Slide 19: Prudent gearing and high balance sheet flexibility enable significant expansion buffer
Prudent gearing and high balance sheet flexibility enable significant expansion buffer FCF EBITDA Net Debt Net Debt/EBITDA 1Includes Payshop, which was previously part of Banco CTT
Slide 20: Strong performance in E&P and Banco CTT, partially attenuated by abnormally weak debt placements
Strong performance in E&P and Banco CTT, partially attenuated by abnormally weak debt placements Outlook ✓ ✓ ✓ ✓ ✓
Slide 21: Investor Relations
2May 2024 Investor Relations Phone: +351210 471087 E-mail: investors@ctt.pt ctt.pt