Slide 1: Q2 2023 Results
Q2 2023 Results The Hague, the Netherlands － 7 August 2023
Slide 2: Additional information and forward-looking statements
Additional information uncertainties and other factors that are outside of our control and Use of non-GAAP information impossible to predict and may cause actual results to differ Additional information is available at www.postnl.nl. Elements of In presenting and discussing the PostNL Group operatin
Slide 3: Key takeaways
Key takeaways Satisfying second-quarter results • Better-than-expected volume development at Parcels: volumes up 3.3%, with growth from domestic and, predominantly, international customers • Reported volumes at Mail in the Netherlands -9.0%, mainly substitution • Measures taken to mitigate inflation
Slide 4: Q2 2023 performance
Q2 2023 performance Normalised EBIT of €18m, better-than-expected and above Q2 2022 Key financial metrics (in € million) Q2 2022 Q2 2023 change HY 2022 HY 2023 change Revenue 746 771 3% 1,552 1,554 0% Normalised EBIT 10 18 80% 43 25 -42% Free cash flow (43) (34) 10 (65) Normalised comprehensive inco
Slide 5: Our strategy
Our strategy The leading logistics and postal service provider in, to and from the Benelux region Strategic foundation Parcels Mail Manage for sustainable growth Manage for value Support business performance and increase customer satisfaction Strategic objectives Customer value Social value Environm
Slide 6: Delivering on our strategy
Delivering on our strategy Continuing our transformation into an e-commerce player Parcels Mail in the Netherlands Digital Next • Strong potential for e-commerce growth with • Unchanged performance drivers: volume decline, • Supporting business performance and increasing unchanged fundamental growth
Slide 7: Parcels: Return to volume growth earlier than expected
Parcels: Return to volume growth earlier than expected Measures to mitigate inflation are successfully paying off Revenue Normalised EBIT Volumes Revenue mix in € million Q2 2022 Q2 2023 Q2 2023 €556m €17m 86m 3.3% Parcels Netherlands 345 366 Spring 91 119 Q2 2022 €519m €14m 83m Logistics solutions
Slide 8: Mail in the Netherlands: Continued volume decline
Mail in the Netherlands: Continued volume decline Delivery quality below the required level and has full attention Revenue Normalised EBIT Volumes Q2 2023 €323m €2m 409m -9.0% Q2 2022 €350m €13m 450m Volume • Overall volume decline of 9.0% • 8.4% underlying volume decline, excluding non-recurring Co
Slide 9: Better-than-expected HY results and raised FY 2023 outlook
Better-than-expected HY results and raised FY 2023 outlook Volume development at Parcels returned to growth earlier than expected Successfully navigating the current environment Executing on our strategy • Parcels • Capture strong potential for further e-commerce growth at Parcels • volumes returned
Slide 10: Financial performance Q2 and outlook FY 2023
Financial performance Q2 and outlook FY 2023 9
Slide 11: Parcels Q2 2023 normalised EBIT bridge
Parcels Q2 2023 normalised EBIT bridge Volume growth and good operational leverage largely mitigate organic cost pressures (in € million) Normalised EBIT Q2 2022 14 Parcels Netherlands Revenue - volume 14 3.3% volume growth Revenue - price/mix 7 Higher prices largely offset by less favourable mix de
Slide 12: Mail in the Netherlands Q2 2023 normalised EBIT bridge
Mail in the Netherlands Q2 2023 normalised EBIT bridge Price increases and cost savings do not fully mitigate the impact of volume decline and organic costs (in € million) Normalised EBIT Q2 2022 13 Mail activities Revenue - volume (20) 9.0% volume decline Revenue - price/mix 10 Mainly due to modera
Slide 13: Cash flow better than last year
Cash flow better than last year Impacted by phasing effects within the year (in € million) Q2 2022 Q2 2023 Normalised EBIT 10 18 Reversal normalisations (1) (1) Depreciation & amortisation 39 44 Capex (29) (26) Lease payments and related cash flow (17) (15) Change in working capital (64) (61) Includ
Slide 14: Balance sheet
Balance sheet Solid balance sheet with positive consolidated equity; adjusted net debt at €569m Balance sheet (in € million) 1 July 2023 1 July 2023 Intangible fixed assets 402 Consolidated equity 184 Property, plant and equipment 475 Non-controlling interests 2 Right-of-use assets 283 Total equity
Slide 15: Raised outlook for FY 2023
Raised outlook for FY 2023 Stronger performance at Parcels, contribution from Mail in the Netherlands expected to be below original expectations 2023 outlook Revised (in € million) 2022 Updated assumptions FY 2023 (27 Feb 2023) outlook Normalised EBIT 84 70 – 100 100 – 130 • Parcels • low single-dig
Slide 16: Quarterly split of normalised EBIT
Quarterly split of normalised EBIT As of Q2, improved performance compared with last year, despite significant organic cost increases Normalised EBIT Assumptions HY2 2023 (indicative only, in € million) • Stronger business performance at Parcels • Partly offset by lower performance at Mail in the Ne
Slide 17: Better-than-expected HY results and raised FY 2023 outlook
Better-than-expected HY results and raised FY 2023 outlook Volume development at Parcels returned to growth earlier than expected Key messages • Parcels • volumes returned to growth with both domestic and international contributing • measures taken to mitigate inflation successfully paying off • Mai
Slide 18: Q&A Q2 2023 Results
Q&A Q2 2023 Results 17
Slide 19: Appendix
Appendix → Results per segment → Revenue mix Parcels → Full reconciliation income statement and EBITDA per segment → Free cash flow → Result development (bridge) per segment → Adjusted net debt → Profit and normalised comprehensive income Q2 2023 Results → Assumed non-recurring impact related to Cov
Slide 20: Results per segment Q2 2023 and HY 2023
Results per segment Q2 2023 and HY 2023 (in € million) Revenue Normalised EBIT Margin Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Parcels 519 556 14 17 2.8% 3.1% Mail in the Netherlands 350 323 13 2 3.6% 0.7% PostNL Other 54 59 (17) (2) Intercompany (177) (168) PostNL 746 771 10 18 1.3% 2.3% HY
Slide 21: Revenue mix Parcels
Revenue mix Parcels As of 2023 (in € million) Q1 2022 Q1 2023 Q2 2022 Q2 2023 Q3 2022 Q4 2022 FY 2022 Parcels Netherlands 361 355 345 366 332 392 1,431 Spring 105 116 91 119 95 113 404 Logistics solutions and other 77 72 74 72 68 77 297 Other / intercompany 11 19 9 (0) 11 4 34 Parcels 554 561 519 55
Slide 22: Full reconciliation of income statement and EBITDA Q2 2023
Full reconciliation of income statement and EBITDA Q2 2023 Income statement PostNL Parcels Mail in NL PostNL Other Eliminations (in € million) Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Total operating revenue 746 771 519 556 350 323 54 59 (177) (168) Other incom
Slide 23: Full reconciliation of income statement and EBITDA HY 2023
Full reconciliation of income statement and EBITDA HY 2023 Income statement PostNL Parcels Mail in NL PostNL Other Eliminations (in € million) HY 2022 HY 2023 HY 2022 HY 2023 HY 2022 HY 2023 HY 2022 HY 2023 HY 2022 HY 2023 Total operating revenue 1,552 1,554 1,073 1,118 737 673 109 119 (367) (355) O
Slide 24: Free cash flow per segment Q2 2023
Free cash flow per segment Q2 2023 (in € million) PostNL Other & PostNL Parcels Mail in NL Eliminations Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 EBITDA 48 61 33 38 20 8 (5) 15 Change in pensions 19 0 - 0 - - 19 (0) Change in provisions 0 3 0 3 0 (2) (0) 1 Change in working cap
Slide 25: Cash flow HY
Cash flow HY (in € million) HY 2022 HY 2023 Normalised EBIT 43 25 Reversal normalisations (4) (1) Depreciation & amortisation 78 85 Capex (64) (64) Lease payments and related cash flow (35) (34) Change in working capital (24) (38) Phasing over quarters within the year 39 0 Pension expense equal to r
Slide 26: Parcels HY 2023 normalised EBIT bridge
Parcels HY 2023 normalised EBIT bridge (in € million) Normalised EBIT HY 2022 33 Parcels Netherlands Revenue - volume (9) 1.7% volume decline Revenue - price/mix 23 Overall higher prices partly offset by less favourable mix development Wage increases PostNL CLA, sector CLA, indexation for delivery p
Slide 27: Mail in the Netherlands HY 2023 normalised EBIT bridge
Mail in the Netherlands HY 2023 normalised EBIT bridge (in € million) Normalised EBIT HY 2022 49 Mail activities Revenue - volume (45) 9.9% volume decline Revenue - price/mix 24 Mainly pricing Organic costs (25) Wage increases and other inflationary pressures Volume-dependent costs 9 Cost savings (€
Slide 28: Adjusted net debt
Adjusted net debt (in € million) 31 Dec 2022 1 July 2023 Short- and long-term debt 745 768 Long-term interest-bearing assets (17) (16) Cash and cash equivalents (556) (459) Net debt 172 293 Pension liabilities 18 2 Lease liabilities (on balance) 331 315 Lease liabilities (off balance) 29 41 Deferred
Slide 29: Profit and normalised comprehensive income PostNL
Profit and normalised comprehensive income* PostNL (around, in € million) Q1 2022 Q1 2023 Q2 2022 Q2 2023 HY 2022 HY 2023 Operating income / EBIT 30 7 9 17 38 24 Net financial expenses (6) (1) (5) (2) (11) (3) Results from investments in JVs/associates 0 (0) (0) (0) 0 (0) Income taxes (7) (2) (2) (3
Slide 30: Assumed non-recurring impact related to Covid-19 in 2022
Assumed non-recurring impact related to Covid-19 in 2022 Volumes (around, in million) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Parcels 2 - - - 2 Mail in the Netherlands 15 3 7 6 30 Revenue (around, in € million) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Parcels 2 - - - 2 Mail in the Netherlands 9 1 2 1