Ctt - Correios De Portugal Sa · EURONEXT:CTT
Ctt - Correios De Portugal Sa — CTT - Correios de Portugal — Non-Deal Roadshow (November 2020)
27 slides from Ctt - Correios De Portugal Sa's roadshow presentation, November 2020
Slide 1: We go further to bring the world closer
We go further tobring | the world Ubeser: ROADSHOWS AND CONFERENCES 9M20
Slide 2: Disclaimer
ft. CEE RoaDsHows AND CONFERENCES9M20 Disclaimer DISCLAIMER This documenthas been prepared by CTT ~ Correios de Portugal, S.A. (the “Company” or "CTT") exclusively for use during the roadshows and conferences of the 9M20 results. As a consequence thereof, this document may notbe disclosedor publishe
Slide 3: Company overview
oc} We go further in ub. fow We go further to bring the wortd closer. overview
Slide 4: Company overview
pect businesses... Key financials ROADSHOWS AND CONFERENCES 9M20| COMPANY OVERVIEW CTT is amodern and dynamic postal services operator with a diversified portfolio of Revenues breakdown €million Revenues: 740.3 EBITDA: 101.5 2019 EBIT: 47.3 Net profit: 29.2 +€xcluding Specificitems & IFRS 16 impacts
Slide 5: Standing out for the capillarity of its networks
ft. CEE RoaDsHows AND CONFERENCES 9M20] COMPANY OVERVIEW ..Standing out for the capillarity of its networks, proximity to the population and strong brand Logistics player... & 619mitems Addressed Mail ><) 521mitems Unaddressed Mail & 38m items Express & Parcels Asat 31 December 2019 ..with growing b
Slide 6: Mail revenues resilient since the IPO
pect ROADSHOWS AND CONFERENCES 9M20| COMPANY OVERVIEW Ooer 6 Mail revenues have shown resilience since the IPO, as the price and mix effects have been able to offset the structural decline in volumes CTT addressed mail volumes CTT addressed & unaddressed mail revenues Million items; CAGR (%) € milli
Slide 7: Upside potential in e-commerce in Portugal and Spain
ft. ctt ROADSHOWS AND CONFERENCES 9M20| COMPANY OVERVIEW, Ooer 7 Significant upside potential exists in e-commerce, a market which remains underpenetrated in Portugal and Spain, the main geographies where CTT operates Percentage of internet users who purchased goods online? E-commerce growth? 2019 2
Slide 8: Market leader in Express & Parcels in Portugal
ft. ctt ROADSHOWS AND CONFERENCES 9M20| COMPANY OVERVIEW Ooer 8 CTT is the market leader in Express & Parcels in Portugal and has been investing in new products and partnerships in order to spur e-commerce growth Portugal Express & Parcels volumes Initiatives for e-commerce ecosystem expansion Milli
Slide 9: Taking a leadership role in e-commerce
ft. ctt ROADSHOWS AND CONFERENCES 9M20| COMPANY OVERVIEW Ove 9 Taking aleadership role in e-commerce CTT has launched various initiatives and partnerships aiming at fostering the development of the e-commerce ecosystem Custonmeracquisiion a a Launch of CTT Local AliExpressin Spain Partnership with L
Slide 10: Spain remains a key growth pillar for Express & Parcels
pect ROADSHOWS AND CONFERENCES 9M20| COMPANY OVERVIEW Spain remains a key growth pillar for the CTT Express & Parcels business, due to its market size and growth dynamics New localmanagement team, with sector & turnaround knowledge & experience reorientation 0) 4q Commercial 5@© + Improve efficiency
Slide 11: 3Q20 highlights
3Q20 highlights
Slide 12: COVID-19 accelerating diversification away from mail into parcels and banking
The COVID-19 pandemic is accelerating the diversification away from mail into parcels and banking
Slide 13: Double-digit revenues increase and path to solid profitability in growth levers
pect ROADSHOWS AND CONFERENCES 9M20| 3Q20 HIGHLIGHTS Ooer 13 Double-digit revenues increase and path to solid profitability in the growth levers still not counteracting the declines in the legacy businesses Express & Parcels Banco CTT Financial Services & Retail Mail & other Revenues EBITDA EBIT Rev
Slide 14: Lower-than-expected mail recovery; Business Solutions growing
ft. ctt ROADSHOWS AND CONFERENCES 9M20| 3Q20 HIGHLIGHTS Ove 14 Lower-than-expected mail recovery when freight and lockdown restrictions were lifted, while Business Solutions revenues are growing rapidly * Lower-than-expected ordinary mail Di ordinary maitrevenues (¢m) recovery in 3Q20, pressured by
Slide 15: Build-up of Iberian Express & Parcels platform continues
ft. ctt ROADSHOWS AND CONFERENCES 9M20| 3Q20 HIGHLIGHTS Ooer 1s The build-up of our Iberian Express & Parcels platform continues, with the goal to consolidate the market leadership position in Portugal and increase scale in Spain Building an Iberian platform | Continued investment in logistics ll In
Slide 16: Stellar growth in parcels volumes continues
pect ROADSHOWS AND CONFERENCES 9M20| 3Q20 HIGHLIGHTS Ooer 16 The stellar growth in parcels volumes continues, as CTT investments in e-commerce meet clients’ rapidly evolving needs, spurred by the pandemic * Parcels volumes in Portugal continued to grow strongly to record levels with CTT increasing i
Slide 17: Credit activity remained resilient, especially in auto
pect ROADSHOWS AND CONFERENCES 9M20| 3Q20 HIGHLIGHTS Credit activity remained resilient, especially in auto, despite the stricter lending standards a (Auto toans production (Cm) * Auto loans production, impacted by the 321 Crédito was acquired in May-19, which makes the 9M20 yoy change not directly
Slide 18: Growth of Financial Services volumes
ft. CEE ROADSHOWS AND CONFERENCES 9M20| 3920 HIGHLIGHTS Ove 18 The growth of Financial Services volumes, despite the challenging operational environment, reflects CTT’s proximity to the population and its continued commitment to public service | Pubtic debt ptacements (Cm) * The gradual recovery in
Slide 19: All-round excellence
Papelaria erallacs All-round excellence Going further to be dose.
Slide 20: Lower mail revenues exert pressure on results
ft. CEE ROADSHOWS AND CONFERENCES 9M20| 9M20 RESULTS HIGHLIGHTS Ooer 20 Lower mail revenues exert pressure on results, heading into the seasonally strong fourth quarter Revenues? € million; % change vs. prior year; % of total Financial Services & Retail? 32.3 (-3.3%) Banco CTT 59.7 (+39.3%) Express
Slide 21: Parcels growth and 321 Crédito drive operating costs
ft. ctt ROADSHOWS AND CONFERENCES 9M20| 9M20 RESULTS HIGHLIGHTS Ove 21 The growth of parcels volumes and the 321 Crédito integration are the main drivers behind the increase in operating costs Operating costs Operating costs! breakdown € million; % change vs. prior year € million, % change vs. prior
Slide 22: Mail disruption and Banco CTT provisions weigh on profitability
ft. ctt ROADSHOWS AND CONFERENCES 9M20| 9M20 RESULTS HIGHLIGHTS Ove 22 The unprecedented business disruption in Mail, as aresult of the pandemic, and the uncommon level of provisions at Banco CTT, weigh on profitability EBIT €million 122.3 “Revenues expansion drives profitability increases in the gr
Slide 23: Net profit impacted by negative Mail EBIT
ft. CEE ROADSHOWS AND CONFERENCES 9M20| 9M20 RESULTS HIGHLIGHTS Ove 23 Net profit impacted by the negative evolution of Mail EBIT, while profitability increases in the remaining business units 43.7 | Mail& E&P BancoCTT FS&R? 0.5, p-1.0 7 Net profit € million other! 22.9 -17.0 9M19 Net profit SEBIT A
Slide 24: Increasing relevance of Banco CTT in consolidated balance sheet
ft. CEE ROADSHOWS AND CONFERENCES 9M20| 9M20 RESULTS HIGHLIGHTS Ove 24 The ever-increasing relevance of Banco CTT to the Group results is reflected in the consolidated Balance sheet 30 September 2020 Balance sheet € million; % change vs. 31 December 2019 Banco CTT financial assets €1,625m & credit (
Slide 25: Liquidity and net financial debt remain stable
ft. CEE ROADSHOWS AND CONFERENCES 9M20| 9M20 RESULTS HIGHLIGHTS Liquidity and net financial debt remain stable 9M20 Cash flow € million; impact on cash flow vs. prior year EBITDA ey a 57.7 (-15.6) Specific items above EBITDA -2.1 I (+12.5) Capex -18.2 VS (+0.2) Change in working capital -21.3 || (-4
Slide 26: FY guidance update
pect ROADSHOWS AND CONFERENCES 9M20| 9M20 RESULTS HIGHLIGHTS FY 20 guidance update Business unit outlook xX Addressed mail volumes decline in the mid-teens; revenues benefiting from the seasonally strong 4Q and Business Solutions growth E&P volumes expected to accelerate further in 4Q20, receiving a
Slide 27: CTT - Correios de Portugal, S.A. Investor Relations
CTT - Correios de Portugal, S.A. Investor Relations Contacts: Phone: +351 210 471 087 E-mail: investors@ctt.pt ctt.pt
CTT - Correios de Portugal — Non-Deal Roadshow (November 2020) on 6ix