Ctt - Correios De Portugal Sa · EURONEXT:CTT
Ctt - Correios De Portugal Sa — Ctt Correios Portgl — FY2024 Earnings Presentation
33 slides from Ctt - Correios De Portugal Sa's earnings presentation, Mar 21, 2025
Slide 1: Commitment with Purpose – FY24 Results Presentation
20 March 2025 20 March 2025 Commitment with Purpose FY24 Results Presentation
Slide 2: Disclaimer
Disclaimer DISCLAIMER FORWARD-LOOKING STATEMENTS This document has been prepared by CTT – Correios de Portugal, S.A. (the “Company” or “CTT”) exclusively for This presentation contains forward-looking statements. All the statements herein which are not historical use during the presentation of the F
Slide 3: Operational Review
ctt | Operational Review ts
Slide 4: 2024, from transformation to growth!
2024, from transformation to growth! Overview Guidance accomplished €85m recurring EBIT, of which €71m (+38% y.o.y.) from Logistics and Bank Strong Cash Flow Operating CF growing 6.7% y.o.y. to €70m1 Balance sheet flexibility 1.6x net debt/EBITDA1, well below 2.5x limit envisaged in CTT’s financial
Slide 5: 38% growth in rec. EBIT of Logistics and Bank, beating guidance
38% growth in rec. EBIT of Logistics and Bank, beating guidance Overview Revenues1 Recurring EBIT1 € million; % change y.o.y. € million; % change y.o.y. +17.0% 1,107 88 85 +1 1,080 28 +38.1% 14 71 985 +156 36 +6 63 923 +14 51 FY23 FS FY23 ∆ ∆ Bank FY24 FS FY24 FY23 FS FY23 ∆ ∆ Bank FY24 FS FY24 ex-F
Slide 6: Record volumes in peak season sustaining revenue growth
Record volumes in peak season sustaining revenue growth throughout the year Express & Parcels E&P Iberia | CEP Volumes E&P | Revenues million items € million; % change y.o.y. +30.9% +33.7% 43.5 148.5 35.1 120.1 33.2 32.8 111.1 109.0 30.1 101.4 26.1 88.1 23.1 76.7 17.8 64.7 1Q23 2Q23 3Q23 4Q23 1Q24 2
Slide 7: Significant margin expansion due to operational leverage
Significant margin expansion due to operational leverage Express & Parcels E&P | Rec. EBIT margin € million; % change y.o.y. 7.5% 5.8% 8.7% 8.1% 7.0% 6.9% 7.4% 100% 6.8% 122 11.8% 5.6% 138 -88.2% 16 ∆ Revenues ∆ Costs ∆ rec. EBIT 1.0% +57.0% +83% 12.0 36 10.4 +16 7.7 8.1 20 6.2 5.2 5.6 0.7 1Q23 2Q23
Slide 8: Excellent organic growth legitimises non-organic acceleration
Excellent organic growth legitimises non-organic acceleration Express & Parcels Accelerate to leadership in Iberian e-commerce, expanding offer and strengthening customer relationships Diversify risk: new segments (B2B) and wider presence in the value chain (customs clearance) Effectively attack the
Slide 9: Cacesa's acquisition and partnership with DHL are complementary
Cacesa’s acquisition and partnership with DHL are complementary Express & Parcels % of total trade 2% 19% US to Europe 17% Asia to Europe CTT’s strong foothold on cross-border DHL differentiated characteristics to enhance e-commerce to be further reinforced by CTT’s presence in these flows in Iberia
Slide 10: Continued focus on strengthening portfolio in e-commerce logistics
Continued focus on strengthening portfolio in e-commerce logistics Express & Parcels 2024 review 2025 priorities PUDOs and lockers Accelerate the collectt Standardisation >20,000 PUDOs Inorganic growth network of Iberian offer • Standardisation of • Launch of Iberian • Acquisition of Cacesa to Syner
Slide 11: More working days and backlog reversal with a positive impact on 4Q volumes
More working days and backlog reversal with a positive impact on 4Q volumes Mail & Other Addressed mail volumes Addressed mail average revenue per item % change vs. prior year % change vs. prior year Adjusted for elections impact Reported 18.3% -4.4% -4.5% 10.3% 10.8% -7.3% -7.5% 9.2% -5.2% -7.8% 10
Slide 12: Solid revenue performance, underpinned by seasonal volume recovery
Solid revenue performance, underpinned by seasonal volume recovery Mail & Other Addressed mail revenues Addressed mail revenues per working day € million € million +4.1% 100.7 1.53 95.1 92.8 1.49 90.8 89.1 89.2 80.9 82.4 1.41 1.30 1.29 1.21 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Jul-24 Aug-24 Sep-2
Slide 13: Strong 4Q24 in mail, as anticipated, enabling EBIT growth
Strong 4Q24 in mail, as anticipated, enabling EBIT growth Mail & Other Mail & Other | Revenues Mail & Other | Rec. EBIT € million; % change y.o.y. € million; % change y.o.y. Margin: 1.7% 4.4% +5.5% 122.5 +6.3 +170.5% 116.1 5.4 +3.4 2.0 4Q23 4Q24 4Q23 4Q24 13
Slide 14: Our mindset continues to be of cost reduction to protect profitability
Our mindset continues to be of cost reduction to protect profitability Mail & Other Mail & Other | Costs (Rec. EBIT level) Mail & Other | Rec. EBIT € million € million +19 +1 +6 -13 +6 +5 +15 443 462 10.5 8.2 -2.3 FY23 Inflation Elections ∆ Internal ∆ ∆ Other Cost FY24 FY23 FY24 impact Services Depr
Slide 15: In 2024 CTT took significant steps on mail quality and client engagement
In 2024 CTT took significant steps on mail quality and client engagement Mail & Other More adequate USO quality indicators • Relatively to deliveries in continental Portugal Traceable mail • Control the quality of mail previously not traceable • Added value service for customers Reorganising the net
Slide 16: Strong recovery in public debt placements led to normalised levels
Strong recovery in public debt placements led to normalised levels Financial Services Public Debt placements, per quarter € million 7,544 Record amount in Portuguese deposits (€190bn) which 3,830 meanwhile became no longer attractive vs. public debt certificates 2,0341 Portuguese government authoris
Slide 17: Healthcare plans bring extra and more predictable revenues
Healthcare plans bring extra and more predictable revenues Financial Services Healthcare Plans number of users; % change y.o.y. ARPU: €32/year1 Recurring revenue, which with time, will become an +740% increasingly relevant business 25,815 Competitive offer at a low price and with significant discoun
Slide 18: Continued optimisation of retail network to expand the services offering
Continued optimisation of retail network to expand the services offering Financial Services Actions taken in Investment in new store layout 2024, that will be Expand new layout with self service stations to free time from counter clerks for 01. services sale further developed in 2025 to enhance Cust
Slide 19: Banco CTT is increasing the engagement per client
Banco CTT is increasing the engagement per client Bank Bank | Number of accounts Bank | Business volumes thousand accounts, EoP; % change y.o.y. € million; % change y.o.y. CMD22 target for 2025 >€7,000m +5.3% +20.9% 681.3 7,009 675.7 6,812 667.2 6,538 657.9 6,192 646.9 5,795 637.5 5,335 625.5 4,936
Slide 20: Banco CTT continues to capture market share
Banco CTT continues to capture market share Bank Customer deposits1 Loans volumes2,3 € million, EoP € million, EoP +30.8% Banco CTT is gaining market share +9.0% 4,044 (Portuguese deposits5 grew 7.2%) 938 860 Yield4 Auto 6.4% Improving client engagement by: 3,091 Dec-23 Dec-24 • Revamping Banco CTT
Slide 21: Record RoTE in Banco CTT, reaching CMD22 targets for 2025
Record RoTE in Banco CTT, reaching CMD22 targets for 2025 Bank Revenues Profit before Taxes3 € million; % change vs. prior year € million; % change vs. prior year NIM1 RoTE2 2.9% 2.6% 2.2% 9.0% 13.0% +11.8% 128.5 129.9 +2.6 -0.4 -12.3 +11.5 116.2 +25.9% 26.4 21.0 FY23 Universo FY23 ∆ ∆ ∆ Other FY24
Slide 22: Investing to unlock future growth potential of Banco CTT
Investing to unlock future growth potential of Banco CTT Bank Continuing to grow in Excelling in Savings Investing to enhance business volumes client engagement Become the main bank for Launch new products such as Upgrade of core systems most of our customers fund distribution, structured New digita
Slide 23: Continued progress in ESG dynamics in a context of strong volumes
Continued progress in ESG dynamics in a context of strong volumes ESG Taxonomy, eligibility & alignment1 Non-eligible Last mile green vehicles (own fleet)3 € million; % of Revenues and Capex Eligible, non-aligned # electric vehicles Eligible, aligned 1,107 985 1,100 23% 119 100% 28% 620 50% +5pp 482
Slide 24: Financial Review
ctt Financial Review
Slide 25: Seasonally stronger 4Q with an impressive y.o.y. growth
Seasonally stronger 4Q with an impressive y.o.y. growth Financial Review Key financial indicators € million; % change vs. prior year Quarter Full year 4Q23 4Q24 y.o.y FY23 FY24 y.o.y Revenues1 269.8 315.0 16.8% 985.2 1,107.3 12.4% Operating costs - EBITDA2 233.5 265.3 13.6% 833.3 947.0 13.6% EBITDA2
Slide 26: E&P is the highest growth business
E&P is the highest growth business Financial Review Revenues1 Revenue1 breakdown € million; % change vs. prior year € million; % change vs. prior year; % of total FY24 +16.8% % of 11.7% total Express & +6.3 +2.3 315.0 Parcels +37.4 2.5% -0.9 43.3% 479.0 (+40.6%) Mail & Other2 269.8 1,107.3 470.6 (+3
Slide 27: Continued focus on profitability
Continued focus on profitability Financial Review Operating costs1 Operating costs (Rec. EBIT)1 breakdown € million; % change vs. prior year € million; % change vs. prior year; % of total +13.7% FY24 +2.9 +0.8 Staff 284.5 % of 405.4 (+5.9%) -2.6 7.4% total 19.2 2.9% External Supplies +33.1 265.3 1.5
Slide 28: Record recurring EBIT in 4Q24 underpinned by margin expansion
Record recurring EBIT in 4Q24 underpinned by margin expansion Financial Review Recurring EBIT1 € million; % change vs. prior year Margin: 7.2% 9.7% 8.9% 7.7% -2.7% +16.4 +56.5% -2.3 +1.7 30.5 +1.6 87.6 +3.4 +5.5 85.1 +4.4 19.5 -22.0 4Q23 ∆ E&P ∆ Mail & ∆ FS ∆ Bank 4Q24 FY23 ∆ E&P ∆ Mail & ∆ FS ∆ Ban
Slide 29: Higher capex and taxes explaining most of the FCF changes
Higher capex and taxes explaining most of the FCF changes Financial Review FY24 Cash flow Net financial debt as at 31 December 20241 € million; impact on cash flow vs. prior year € million EBITDA 160.3 (+8.4) Consolidated IFRS16 affecting EBITDA -39.3 (-8.5) (+) Cash & cash equivalents 315.9 Impairm
Slide 30: Strong cash-flow generation underpinning balance sheet flexibility
Strong cash-flow generation underpinning balance sheet flexibility Financial Review FY24 Cash flow Evolution of net debt EBITDA and leverage € million; with Banco CTT under equity method € million; with Banco CTT under equity method € million; with Banco CTT under equity method OCF FCF Net debt EBIT
Slide 31: Outlook & Final Remarks
ctt Outlook & Final Remarks
Slide 32: Outlook and final remarks
Outlook and final remarks FS as a profitability Uniquely enhancer positioned e-commerce logistics Normalised debt placements and new player in Iberia services Achieved 2024 guidance … and already achieved 2025 revenue Market share expansion based on guidance issued in the CMD22 (€1.1-1.25bn) commerc
Slide 33: Commitment with Purpose
Commitment with Purpose FY24 Results Presentation Investor Relations Phone: +351 210 471 087 E-mail: investors@ctt.pt ctt.pt 20 March 2025