Investor presentation - First quarter 2021 May 2021 - bpost group
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Investor presentation
First quarter 2021
May 2021
Investor presentation
First quarter 2021
Contents Financial Calendar
Highlights & guidance Mail & Retail – 16-26 Cash flow – 63 12.05.2021
Parcels & Logistics Eurasia – 27-39 Balance sheet – 64 Ordinary General Meeting of Shareholders
1Q21 Highlights – 4 Parcels & Logistics N. America – 40-47 Financing Structure & Liquidity – 65
Outlook 2021 – 5 Project One – 48
Sustainability – 49-51 Additional Info 05.08.2021 (17:45 CET)
bpost group at a glance Key financials FY20 – 67
Quarterly results 2Q21
Overview – 7 1Q21 results Results by segment FY20 – 68 09.11.2021 (17:45 CET)
Purpose, mission and strategy – 8 EBIT bridge – 53 Relationship with State – 69
Ambitions & milestones – 9 Quarterly results 3Q21
Key financials – 54 USO & SGEI – 70 & 71
Investment rationale – 10 Results by segment – 55 European mail market – 72
Business transformation – 11 Mail & Retail – 56 & 57 Key contact – 73
Capital allocation – 12 Parcels & Logistics Eurasia – 58 & 59
Dividend policy – 13 Parcels & Logistics N. America – 60 & 61
Project governance process – 14 Corporate – 62
Management – 15
More on corporate.bpost.be/investors
Disclaimer
This presentation is based on information published by bpost group in its First Quarter 2021 Interim Financial Report, made available on May 5th, 2021 at 5.45pm CET and in its 2020 Annual Report available on corporate.bpost.be/investors. This information
forms regulated information as defined in the Royal Decree of November 14th, 2007. The information in this document may include forward-looking statements1, which are based on current expectations and projections of management about future events. By
their nature, forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future
whether or not outside the control of the Company. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no assurance is given that such
forward-looking statements will prove to have been correct. They speak only as at the date of the Presentation and the Company undertakes no obligation to update these forward-looking statements contained herein to reflect actual results, changes in
assumptions or changes in factors affecting these statements. This material is not intended as and does not constitute an offer to sell any securities or a solicitation of any offer to purchase any securities.
1 as defined among others under the U.S. Private Securities Litigation Reform Act of 1995
2 1Q21 Roadshow presentation
Highlights 1Q21 Guidance 2021
Highlights of 1Q21 1Q21
Strong start to the year driven by continued growth in parcels and e-commerce logistics on both sides of the
Atlantic, and lower than expected impact of mail volume decline in Belgium
Initial 2021
Group operating Mail & Retail Parcels & Logistics Parcels & Logistics guidance
income Eurasia N. Am. raised, group
€ 1,019.9m € 70.6m € 37.3m € 8.2m adjusted EBIT
up 9.1% 13.9% EBIT margin 13.0% EBIT margin 2.9% EBIT margin expected to
compared to last year’s
pre COVID-19 first
• Total operating income at • Total operating income at • Total operating income at be above €
€ 506.8m (+1.4%) driven by € 287.8m (+34.8%) driven by € 282.1m (+7.9%) driven by
quarter higher volume driven thriving e-commerce both continued strong growth at
310m
intersegment income related domestically (Parcels BeNe Radial from existing customers
to parcels volumes, partially +39.2%) and abroad (Cross- and new business signed in
compensated by lower border +43.1%) 2020.
revenues in Retail and lower
Group adjusted than expected impact of the
• Operating income Parcels B2X1
increased by +51.0% driven by
• Adjusted EBIT increase of
€ +15.7m to € 8.2m driven by
EBIT mail volume decline supported organic volumes at +54.1% growth in operating income
by a positive price and mix from continued momentum in and operating leverage at
€ 115.5m impact e-commerce development Radial
11.3% EBIT margin • Underlying mail volume • Adjusted EBIT up € +20.4m
decline at -7.8% and more than doubling, with
up € +39.9m compared • Adjusted EBIT up € +5.5m margin improvement driven by
to prior year (+8.4%) elevated proportion of parcels
volumes handled through the
integrated network
4
1 Parcels B2X sales and volumes do not include EuroSprinters and Dynagroup 1Q21 Roadshow presentation
Increased 2021 group EBIT outlook Outlook FY21
In light of the strong first quarter results, and based on current assumptions of normalization for COVID-19 volumes
for the rest of the year, bpost now expects the group adjusted EBIT to be above € 310m
Mail & Parcels & Parcels & Group Dividend
Retail Logistics Europe Logistics North
& Asia America
Total operating income: High single-digit % growth Mid- to high single-digit % Low to mid-single-digit % 2021 dividend in the range
• Underlying Domestic in total operating income growth in total operating growth in total operating of 30-50% of IRFS net
Mail volume decline up with parcels and e- income driven by Radial income profit and payable in May
to -8% commerce logistics existing customers growth 2022 after the General
Adjusted EBIT above
• Approved mail pricing volumes expected to and new client launches, Shareholders’ Meeting, in
€ 310m
of +6.0% normalize from elevated normalized for 2020 accordance with the new
• Expected post COVID- COVID-19 levels COVID-19 spike Gross capex around dividend policy
19 recovery in VAS € 200-220m, geared
Operating expenses will 4-5% adjusted EBIT towards the strategy to
7-9% adjusted EBIT margin include investments to margin grow omni-commerce
grow omni-commerce logistics
logistics in Europe
9-11% adjusted EBIT
margin
5 1Q21 Roadshow presentation
bpost group at a glance
Belgium’s leading postal operator with parcel & e-commerce at a glance – group
logistics activities in Europe, North-America and Asia
Revenues % of total
€ 4,154.6m1 € 280.6m
Transactional mail € 725m 18%
Mail & Retail Advertising mail € 183m 4%
revenues 6.8% € 1,736m
EBIT 42% Press € 339m 8%
Proximity and convenience retail network € 386m 9%
€ 519.1m € 200.9m Value added services € 103m 2%
12.5% net profit
EBITDA Parcels & Logistics Parcels Be-Ne € 548m 13%
Europe & Asia E-commerce logistics € 173m 4%
38,639 € 1,074m
26% Cross-border € 354m 9%
average
# FTE & interims
Parcels & Logistics
E-commerce logistics € 1,246m 30%
North America
€ 1,329m International mail € 83m 2%
32%
2020 figures (adjusted)
1 41.8% Mail & Retail, 25.8% Parcels & Logistics Europe & Asia, 32.0% Parcels & Logistics North America and 0.4% Corporate revenue
7 1Q21 Roadshow presentation
Purpose, mission and strategy at a glance – group
PURPOSE
Your trusted guide to connect in a changing world
MISSION
We, the engaged employees of bpost group, take care of relations and transactions in an
evolving physical and digital world.
We build on our knowledge of society, customers and technologies.
We create sustainable value for our worldwide customers and shareholders.
STRATEGY
We accelerate our transformation into an omni-commerce group
close to society, while remaining an efficient mail provider in Belgium
8 1Q21 Roadshow presentation
Ambitions and milestones at a glance – group
AMBITIONS MILESTONES
Accelerate e-commerce logistics in Europe p. 37-39
PaLo NA : 5 initiatives to further improve profitability p. 47
Joint vision for e-commerce logistics in Europe and North America p. 48
Best customer experience for receivers and senders p. 31
Support Belgian SME’s to embrace e-commerce p. 32
Increase NPS scores through innovative tracks p. 27
Further automate omni-commerce with robotics p. 40
New distribution model : ADM - Delta p. 24-25
Project One for overhead efficiency p. 49
Putting People, Planet & Proximity to ESG p. 50-52
Create additional proximity services in Belgium
Retention with modernization of the existing services
to Public authorities in Belgium
bpost Academy
9 1Q21 Roadshow presentation
bpost group offers a strong investment rationale at a glance – group
bpost group aims at being a responsible company, delivering sustainable returns to its shareholders
What? How?
We develop sustainable activities in the Growth in Experienced Multiple levers for A solid balance
high growth e-commerce logistics & e-commerce management transformation of sheet with single
parcels business in our logistics & parcels team with the legacy 'A' credit rating
Belgium/Netherlands home market and through capex embedded business: natural
key geographies in Europe and North and bolt-on M&A financial discipline attrition,
America and a strong alternating
business distribution
transformation model, stable and
track record predictable
We continue to transform the mail and regulation,
proximity business in the home market to network
sustain solid cashflows optimization,…
The financial ambition of CONNECT 2026 is to seek to more than compensate the EBIT loss from our
Goal declining mail business in the trajectory 2021-2026, and gear for adjusted EBIT growth of bpost group
10 1Q21 Roadshow presentationWe accelerate our transformation into an omni-commerce group at a glance – group
close to society, while remaining an efficient mail provider in Belgium
This business transformation will require time and investments
Different businesses with opposing dynamics are at different … they therefore require different levels of investments
stages of their cycle with the inflection point being in the course of the business transformation
unpredictable as to exact timing…
EBIT Investments
M&R PaLo’s
PaLo’s
M&R
Time Time
Our financial ambition is to seek to more than compensate the EBIT loss from our declining mail business in the
trajectory 2021-2026, and gear for adjusted EBIT growth of bpost group.
Going forward, we will give yearly financial guidance rather than long-term group EBIT targets since
our business transformation is partly dependent on exogenous factors which are unpredictable in timing.
11 1Q21 Roadshow presentationOur capital allocation enables our business transformation at a glance – group
To ultimately deliver durable shareholder value while being sustainable from a cash flow perspective
and strive for investment grade
Capital sources Capital allocation
Capex Additional
EBIT generation growth
• For growth and maintenance, to foster EBIT
• Development • Mail growth capex
in E-commerce volume • Strict investment return criteria
+ -
logistics decline
• Parcels growth
STARTING • Profitability Bolt-on M&A
POINT enhancement
plans • To accelerate growth in Radial Europe
M&A
• Strict investment return criteria
Enable bpost CASH-FLOW
group’s successful CASH
FROM
business BUFFER
OPERATIONS
transformation
Working Dividends Additional
while staying shareholder
financially capital needs • Provide sustainable returns
returns
• Grow long-term shareholder value
disciplined1
• Driven by the business mix and the shift
away from the payments business at
Radial
Disposal of non-core assets
Debt
• Active portfolio management to identify non- reduction
core assets and consider them for disposal
1 Financial discipline is reflected in our striving for an investment grade rating, based on internal cash generation
12 1Q21 Roadshow presentationWe remain committed to rewarding shareholders in a sustainable at a glance – group
way, while we invest to position the company for growth
IPO dividend policy until 2019 Updated dividend policy
Minimum of 85% of BGAAP net profit of the mother company
bpost SA/NV (unconsolidated)
1.29 1.31 1.31 1.31
1.26
1.13
Dividend pay-out ratio between 30-50% of IFRS net profit:
0.62 • Sustainable in the long run as it offers flexibility and headroom to
manoeuvre through the business transformation
• Timing of the annual dividend payment will be in the month of
May after the Annual Shareholders Meeting
2013 2014 2015 2016 2017 2018 2019
91% 85% 90% 85% 90% 100% 72%1
X% BGAAP net profit pay-out ratio
1 Exceptional deviation from the dividend policy due to COVID-19 to strengthen balance sheet & cash reserves for the
long-term. Gross DPS on FY19 results was limited to the interim dividend paid in Dec-19 of € 0.62
13 1Q21 Roadshow presentationAll investments are tested against additional at a glance – group
cash returns to shareholders
• Increased rigour on all capex
• Projects prioritised in line with strategic intents and targeted return
• Optimising balance between growth and maintenance capex
Rigorous project • Suite of metrics to ensure a balanced appraisal
governance process
Payback
IRR NPV
Consistent and thorough period
application of return
metrics
• Projects must attain a minimum return surpassing bpost’s WACC by at least 2%
while limiting the payback period
• Investments reviewed periodically to monitor progress
14 1Q21 Roadshow presentationOur experienced management team has at a glance – group
responsibilities down to the bottom-line
Dirk Tirez Luc Cloet Kathleen Van Beveren Ilias Simpson
Group CEO ad interim CEO Mail & Retail CEO Parcels & Logistics Europe & Asia CEO Parcels & Logistics North
CLO America
Mark Michiels Leen Geirnaerdt Nico Cools
CHRO CFO CIO
15 1Q21 Roadshow presentationMail & Retail at a glance – M&R
at a glance
Sub-segments Revenues 2020, €m Key facts & figures
725
Transactional mail
~5.8m
letters handled daily
183
Advertising mail
~20.7k
339 operational FTEs
Press
387
Servicing 5m
Proximity and convenience retail network letter boxes
Value added services
103 5
industrial sorting centers
1,736
Total ~2,300
points of presence in Belgium
16 1Q21 Roadshow presentationKey value drivers for Mail & Retail at a glance – M&R
Key value drivers From To
Speed of mail volume decline -7.9% Between 9% - 11%
in 2019 in 2021
Share of mail volume decline compensated 18-45% >50%
through price increase over 2014-2017
Three contracts Extension
Renegotiation/retendering of future 6th of the 2 press concessions until end 2022
Management contract and press concessions until end 2020; Extension
compensation contractually set
of the 6th Management contract until end 2021
Evolution of operating model Fixed D+1 Flexible,
(mail collect and distribution) based model differentiated offering
(everywhere, everyday) (prior vs. non-prior.)
17 1Q21 Roadshow presentationDomestic mail volume decline is accelerating at a glance – M&R
2013 2014 2015 2016 2017 2018 20191 2020
Key drivers
Underlying change -4.2% -4.4%
in domestic mail volume
-5.0% -5.0% -5.8% -5.8%
-7.9% • E-substitution at large
-12.0% corporates and SMEs
Transactional mail -3.7%
-5.0%
• Intensifying competition in
-5.3% -5.9% -5.7%
-8.1% -9.2% advertising media
-11.3%
1.5% • Shift to digital for newspapers
& magazines
-3.0% -3.0% -4.7%
-4.9%
Advertising mail -7.2%
-9.1% • Service level elasticity
-18.8% from the implementation of the
Alternating Distribution Model
Press -3.0% -2.8% -2.8% -2.8%
-3.7% -3.8%
-5.3%
-6.5%
1 As of start FY19 Transactional Mail excludes outbound and Press includes Ubiway press distribution
18 1Q21 Roadshow presentationRegulatory aspects at a glance – M&R
Designated provider of the 4 key contracts with the Postal law of 10 February 2018
Universal Service Obligation Belgian State provides stable & predictable
until end 20231 mail pricing framework
• Collection, sorting, transport and distribution of • Management contract for the provision of the • Single piece mail & USO parcels falling within
postal items up to 2kg and single piece postal USO (2019-2023) “small user basket” are subject to a price cap
packages up to 10kg • 6th Management Contract (2016-2020 extended • Price cap2 = inflation - (volume evolution +
• Collect and deliver 5x per week until end 2021, in view of the negotiation of the cost reduction factor x efficiency gains
7th Management Contract): for the provision of sharing factor)
• Cover full territory of Belgium for collection and
certain SGEIs, i.e. maintenance of retail network,
delivery of items belonging to universal service • Volume and operational discounts allowed for
cash at counter, cash payment of pensions at other USO products (bulk)
• Apply uniform tariffs and an identical service home
across the territory • Price increases done in practice on a yearly
• 2 press concessions (2016-2020 extended for 2 basis: +5.1% on average in 2020 on all domestic
years until end 2022): (1) for distribution of mail items; +6.0% on average for 2021
periodicals and (2) for distribution of
newspapers
1 Refer to slide 80 for more details
2 Exact formula: Price cap = health index April n-1/health index April n-2 * (1 - [expected volume decline/(expected volume decline +1)] - 2.8%*33%) - 1
19 1Q21 Roadshow presentationNew Postal Law (Effective as of February 10, 2018)
at a glance – M&R
provides stable and predictable regulatory framework to
increase prices in context of accelerating mail volume decline
Drivers of the price cap formula
Inflation Volume decline Efficiency gains
Description Compensation for inflation Compensation for
mail volume decline
Mechanism to share 1/3 of the
efficiency gains target
with consumers
Correlation Higher inflation results in Larger mail volume decline results Constant and fixed by law
larger allowed price increase in larger allowed price increase
to price cap
Calculation Ratio of the health index as [V/(V+1)] with V as the expected Fixed by the law at 0.9%
measured in April of the years negative volume trend on the Small (i.e., 1/3 of 2.8% efficiency
logic n-1 and n-2 User Basket gains target)
Illustrative example assuming 2% inflation and -6% average volume decline:
Price cap1: 7.6% = 102% x [ 106.4% – 0.9% ]
1 Detailed formula: Price cap = (1 + inflation) * (1 - [V/(V+1)] – 0.9%) – 1, giving for the above example the following calculation (1+2%) * (1 – [-6%/(-6%+1)] – 0.9%) - 1 = 7.6%
20 1Q21 Roadshow presentationPrice increase and mix effects expected to compensate at a glance – M&R
>50% of mail volume decline
Volume and price/mix impact on revenue €m
Key drivers
Domestic mail volume Domestic mail price/mix % Share of volume effect compensated by price/mix
• Accelerating domestic mail
72% 45% 30% 31% 18% >50%
volume decline
68
71 • New price cap mechanism of
67
60 Postal Law defining max price
57
increase for small user basket,
42 and serving as guideline for
price increase on non-price
27
20 21
capped products
13
• Price increase partly
offset by shift to less expensive
2013 14 15 16 17 2018-191 mail products
Price increase on small Building on the New
user basket rejected by Postal Law for price
regulator regulated products
12018 was at 70%, 2019 was 58%
2020 wasManagement has developed an at a glance – M&R
extended set of cost control options
Operating model Industrial Mail Collect & Distribution FTE Unit cost
Centers Transport
• Differentiated • Optimize mail • Align number of red • Introduce new • Further optimize FTE
offering and sorting centers boxes to mail generation of mix
Alternating footprint volume decline Georoute and time
Distribution Model • Pursue continuous • Stop collect on potential
• Take measures to improvement Saturday and management
address absenteeism increase flexibility of • Simplify process for
pick-up, delivery selected transactions
and dispatch timing • Enhance customer
constraints experience and
• Transport productivity through
optimization (fill-in digital (e.g.,
rate and routes) consumer
preferences)
22 1Q21 Roadshow presentationA differentiated offering enables a new distribution at a glance – M&R
model to accommodate changing customer needs
Differentiated offering Alternating Distribution Model Optimizing drop density
as of January 1st, 2019 as of mid-March 2020 Share of houses receiving mail on any given day, %
ADM:
D+1 Mail Model until mid-March 2020:
everywhere, everyday
D+3 combined
with D+1
Available to consumers Adjusted “day certain” distribution
~70 ~70
who need D+1 delivery frequency: in each street, mail will be ~55A further review of the operating model in Belgium is at a glance – M&R
required to align operations with expected market evolutions
Drivers 2020-2021 2022-2023 onwards
• Accelerated mail volume decline Alternating Distribution Model Delta
Volumes • Strong increase of parcels volume
Successful “big bang” nationwide roll- What
out mid-March 2020 Re-invent the Mail & Parcels supply chain
in Belgium based on expected market
evolution, combining agility, cost and
Delayed launch of gradual mail round service quality
• Increase parcels margin
reorganization process
Profitability • Protect mail profitability
How
• Taking into account our social
Full savings expected by 2022 / 2023
responsibility as one of the largest
depending on the speed of the
employers in Belgium
• More flexibility asked by consumers reorganization
• Bearing in mind evolving customer
Market • Broader range of goods ordered
needs (sender & receiver)
demand online
Volume changes linked to COVID-19 are • Responding to sustainability and other
• Increasing EOY peaks
taken into account market trends
• Sustainability: carbon neutral Goal
Market delivery • Maximize EBIT
• Minimize capex
trends • Urban low emission zones
• Increase asset utilization
• Congestion/mobility challenges
24 1Q21 Roadshow presentationOptimized employee mix and decrease of mail related at a glance – M&R
FTEs will mitigate higher FTE needs in Parcels & Logistics
Operational FTE evolution1 Age pyramid Natural
attrition
Average FTEs and interims, ‘000 Headcount bpost SA/NV per age, 31/12/20
Average
19.3 20.0 20.1 20.7 10,234 9,867 natural attrition
Non pay-scale contractuals
6,667 is expected to
Allocated Pay-scale contractuals
80-85% be at 1,400
to mail Civil servants
FTEs/year
Allocated
to parcels 15-20%
2017 18 19 20 0-39 40-49 50+
Operational FTE mix evolution1 Average cost per contract type1
Indexed
Other 10% 10% 9% 8%
17% 17% 16% 16%
Contractual
Contractual ~93
Auxiliary
39% 42% 47% 50%
postman Auxiliary
~73
postman
Civil servant 35% 31% 28% 26% Civil servant 100
17 18 19 20
1 bpost SA/NV scope, excluding retail network
25 1Q21 Roadshow presentationWe want to create exciting customer experiences at a glance – M&R
to increase NPS scores through four innovative tracks
Tracks How
• By collecting and grouping all fulfillment, cross-border and last mile data we will be able to
Build global digital knowledge on our have superior insights on our customers
customers be it senders or receivers • By servicing our customers via a global customer engagement center where digital is the
first interaction channel, we will offer a complete end-to-end service
• bpost should become the only company in Belgium that has more than 5 million
Make digital the first interaction medium
customers identified digitally and mobile on the Belgian bpost app
with our customers in Belgium • All our mail products have a digital component
Technology is inherent part of the • A bpost innovation center supported by an agile way of working offers the opportunity to
day-to-day operational activities and involve all our employees in innovation and our customers in the design of new products
and services
guarantees the right to play for all
• Digital twins and Flow control towers will give real-time information on the performance of
entities our factories and provide supply chain solutions for our fulfilment business
New digital business lines and • Different solutions are being investigated
opportunities to complement our
omni-commerce revenue streams
What will this bring us? Digital revenues and EBIT within the M&R business unit, as an alternative to declining mail EBIT
26 1Q21 Roadshow presentationParcels & Logistics Europe and Asia at a glance – PaLo Eurasia
at a glance
Sub-segments Revenues 2020 (€m) Key facts & figures
• Last-mile B2C delivery in the Peak days of up to
Parcels BeNe 548 Benelux 670k parcels during end-of-year
• Total of ~114m parcels in 2020 peak of 2020
• Mostly fulfilment & transport Fulfilment footprint
activities in Europe spread over 8
E-commerce logistics 173 commercial locations
• Activities include Radial EU, Active
Ants and DynaFix
covers over 8 commercial locations
• International mail & parcels across 5 countries in Europe
354 • Majority of cross-border volume is
Cross-border
inbound mail and parcels from 3 main cross-border
Europe and Asia
activity centers
1,074
Total
i.e. Brussels brucargo, Heathrow UK
and Hong Kong
27 1Q21 Roadshow presentationKey value drivers for Parcels & Logistics Europe & Asia at a glance – PaLo Eurasia
Sub-segments Key value drivers From To
Parcels BeNe Ability to capture profitable growth in a competitive
environment
Volume growth rate of 20-30% with
price/mix effect up to -6% over
Double-digit volume growth rate,
address price/mix, support Belgian
2016-2018 SME’s to increase online business
BeNe-wide offering addressing customer requirements Focus on Belgium (sales force, BeNe-wide approach
contracts, DHL partnership)
Optimized last-mile operations based on parcels Parcel hubs where enough density Flexible parcels distribution
characteristics and in line with delivery requirements footprint in close collaboration with
Mail & Retail
E-commerce Ability to organically capture market growth of ~10%
p.a. (vs. in-sourcing, pan-European players)
E-commerce logistics in PL, NL &
BE and DynaFix
Increase scale & skills by leveraging
capabilities of Radial Europe and
logistics Active Ants
Cross-border Develop international cross-border parcels, also across
continents
Natural business evolution Developing international parcel
flows driven by growing
e-commerce activity
Ability to maintain international mail volume
28 1Q21 Roadshow presentationFour strategic initiatives for Parcels BeNe at a glance – PaLo Eurasia
Focus on 4 strategic initiatives
Integrated Differentiate Attract key foreign Convenience
BeNe offering pricing policy e-commerce players & Cost leadership
• Dedicated, specialized • Strategic pricing initiatives • Partnerships with • Increased convenience
sales force e-commerce players through improved receiver
journey and additional pick-
• Integrated commercial • E2E service offering up drop-off lockers (KPI: Net
offers (“gateway to Europe”) Promoter Score)
• Partnership with DHL • Flexible distribution footprint
Parcels in close collaboration with
Mail & Retail
• Increase sorting capacity
• Fulfilment infrastructure
• Transport optimization
• Digital excellence
29 1Q21 Roadshow presentationWe want to offer the best customer experience in at a glance – PaLo Eurasia
business for receivers and for senders
For receivers For senders
We further adapt our parcel delivery to their preferences, and Build an integrated digital environment where SME senders can
make interactions with bpost frictionless: manage all interactions with bpost, e.g.
− Offer additional receiver preference options − Digital onboarding flow for a frictionless ‘early lifetime’
experience
− Improve delivery timeslot logic and communication
− Improved tooling for label creation and business track &
− Use gamification tactics in receiver & postmen apps to trace
boost usage & quality
Interact with large senders’ systems & processes to align bpost’s
− Offer option to chat with a human if our chatbot cannot and sender’s customer journeys to avoid overlap in a.o.
help receiver communication & support
Offer efficient & empathic support channels to minimize
− Sign & pay for deliveries via mybpost app
senders’ need to put effort in asking bpost for help with
− Optimized and aligned experience through all our problems
channels and customer touchpoints
For C senders, offer integrated and optimized customer journey
through all our channels (retail, app, web, call center …)
30 1Q21 Roadshow presentationbpost will support Belgian SME’s to embrace at a glance – PaLo Eurasia
e-commerce and increase their online business
The Belgian e-commerce space is dominated by large international web shops. Only ~1/3 of parcels is sent by Belgian companies
To help Belgian companies to increase their online business, we build on
the recently launched “Every Business Online” offer, so it evolves to a suite
of solutions:
• Offer advice and solutions for doing e-commerce beyond logistics:
− Consultative & community approach to increase customer’s
expertise
− Offer (partner) ecosystem of e-commerce tools with a.o.
marketing & operational solutions
• Offer an efficient, scalable & reliable first mile solution via pick-up and
PUDO
• Offer fulfilment solutions (start Active Ants BE in 2021)
• Ensure a qualitative parcel delivery with a frictionless customer journey
31 1Q21 Roadshow presentationWe have an established position in at a glance – PaLo Eurasia
the Belgian B2C/C2C parcels market
2019 parcel market1: 100% = € 1.6bn
Unique selling proposition
Offer best last-mile and broadest delivery options,
B2C
supported by acquisitions and partnerships:
B2B
• Home delivery 7/7 & evening delivery,
including high-end deliveries (2-man)
C2C • ~2,300 pick-up & drop-off points
CAGR 2019-25e1, % volume growth • >360 parcel lockers in Belgium
~9% (2 new parcel lockers every week in 2020)
• Click & Collect
~3% • Non-exclusive partnerships with DPDHL for B2C parcel delivery into
Belgium (from Germany/France & Benelux)
B2C / C2X B2B
1 Source: Effigy
32 1Q21 Roadshow presentationPartnership with DHL Parcels NL allows to cover the full at a glance – PaLo Eurasia
BeNe region and to capture important cross-border flows
Launched in June 2018
Purchasing behavior
• NL is the most important import country to BE (~30% of import flows)
• BE consumers mainly buy from NL players such as Bol.com and Coolblue
Large NL-based
e-commerce players
• Looking for a BeNe wide offering with regards to last-mile
• Benchmarking prices on a BeNe level
Competitive offering
• Very competitive & dynamic region with many large players such as PostNL,
DHL, DPD, FedEx
33 1Q21 Roadshow presentationThe parcels operating model at a glance – PaLo Eurasia
will be continuously optimized
Optimize distribution cost Evolve towards dedicated Increase sorting capacity
using drop density of mail parcel infrastructure to match
rounds customer requirements
• Maximize parcels in mail rounds • Nationwide Parcel distribution footprint to • Increase sorting capacity in the existing centers
• Cost advantage due to higher drop density accommodate distribution of parcels that are of Brussels, Charleroi & Antwerp to cope with
leading to lower unit costs not in mail rounds increasing volume (optimizing sorting footprint
• Benefits for customer proximity and special mail & parcels)
services e.g. late-in services, “large scale” • Use technology (e.g. address recognition)
evening distribution or same day distribution
34 1Q21 Roadshow presentationSupported by acquisitions, bpost group has assets at a glance – PaLo Eurasia
along the entire value chain of e-commerce logistics
1 2
Order Fulfilment
• Order management • Order reception in warehouses
in the proximity of clients
• Payment services, tax services
and fraud prevention • Preparation for shipment
Realtime
technology
4 3
Customer Care Delivery
• Phone, email, social media & • Hybrid transport network for
chat support high-end and urgent delivery
• Advanced analytics • Last-mile delivery
35 1Q21 Roadshow presentationE-commerce logistics development in Europe can be at a glance – PaLo Eurasia
accelerated thanks to an already strong European footprint
8 ~1,250
Commercial fulfilment FTEs
centers / facilities
The
UK Netherlands
Germany
Poland
Belgium
Italy 5 ~€ 173m
Countries 2020 revenue
Cold chain facility Fulfilment sites Personalized logistics
36 1Q21 Roadshow presentationE-commerce logistics in Europe has at a glance – PaLo Eurasia
2 complementary engines of growth
Type of clients E-tailers & click-and-mortar (omnichannel) Pure e-tailers
Size of clients Medium/large Small/medium
Level of automation Adapted per customer High (AutoStore + automated packaging)
Level of customization High, product and price tailored by client Very low
UK, Germany, the Netherlands, Italy and Poland
Current locations (6 sites, 7th site in March 2021 in DE)
the Netherlands (2 sites)
Grow mainly organically in the countries where we Grow organically by opening 2 new international
Ambitions are already present or in countries marked by sites per year in other European countries outside
flexible & low-cost labour and easy access to NL. A new site will open in Germany and Belgium in
Germany, complemented by targeted bolt-on M&A 2021
37 1Q21 Roadshow presentationRadial Europe, just like in the US, covers all key steps at a glance – PaLo Eurasia
of the value chain unlike most competitors
Technology Services Logistics - Fulfilment Logistics - Transport & delivery Customer care/Return management
After Market
38 1Q21 Roadshow presentationZoom on Innovation in omni-commerce at a glance – PaLo Eurasia
Further modernize and automate operations with Robotics,
reducing dependency and cost for labour acquisition & retention
Context & ambitions How
• Growing demand and industry shortage in reliable warehouse Technology capex focused on Innovation driven Initiatives to return
labour, accelerated under COVID-19, will continue to drive sustainable productivity increases and labour expense savings over
increased labour need and costs time
• Cost of integration and implementation of robotics technologies • Current pilot with robots integrating with humans in the picking
in fulfilment decreasing as more providers and solutions enter process to significantly increase picking UPH
market and drive efficiencies • UI enhancements: handheld scanning devices
• Productivity gains of 10%+ possible across certain process paths • Robotic kitting: establishment of robotic pods that provide
reducing Radial’s cycle time automated kitting for clients with specific product characteristics.
• Packaging profile accuracy: enhancement of weight and measure
• Automation reduces risk exposure and cost linked to overall hiring
devises
needs to both bpost group and our clients
• Scalable tech will help bpost group be flexible and well positioned
to capture clients’ forecasted demand peaks in coming years
39 1Q21 Roadshow presentationParcels & Logistics North America at a glance – PaLo N. Am.
at a glance
Sub-segments Revenues 2020, €m
US e-commerce logistics Capabilities to support
Objectives
provider fulfilling 83m mid-sized e-tailers to
parcels p.a. with proven expand cross-border and • Growth engine for bpost
E-commerce logistics1
1,246 client base, IT last-mile distribution in group, to be a leading
infrastructure and Canada and Australia omni-commerce
capabilities along the E2E
value chain service provider in the
US with healthy financial
International mail performance
International Mail2 83 solutions and catalogue
fulfilment through US • Grow with cross-border
companies commerce
• International mail
providers delivering
Total 1,329 profit through
infrastructure
optimization
1 Radial North America, Landmark Global, Apple Express and FDM
2 MSI, Imex, Mail Inc. = The Mail Group
40 1Q21 Roadshow presentationAcquisition of US-based Radial at a glance – PaLo N. Am.
on 16 November 2017
Acquisition rationale Key acquisition data Radial Global
Our growth • Enterprise Value: $ 820m
• Integrated e-commerce logistics provides access to a larger and more • Sales 2017: $ 1,082m
attractive profit pool • EBITDA 2017: $ 57m (5.3% margin)
• Radial as growth engine and key profit contributor • 100% acquisition of the shares
• Financed through a € 650m 8-year bond issue carrying a coupon of
Presence in the US and Europe 1.25% (issued 4 July 2018)
• Strengthen US position building on presence with Landmark Global
• Scale bpost group’s e-commerce logistics capabilities in the Benelux and
Europe
Strong growth of e-commerce Key indicators for Radial North America
• e-commerce is growing rapidly with US being an attractive and advanced
space (+15% p.a. growth of online retail over 2004-2022e) • TCV of new business went from $ 217m in 2018 to $ 385m in 2019
and $ 1,188.4m in 2020, also positively impacted by longer-term
• Transatlantic e-commerce is growing at >25% p.a. with 20% of European
contracts
parcels coming from the US
• ~8,900 average # of FTEs & interims (2020)
Knowledge and experience • 21 fulfilment centers mainly in the US, a 22nd fulfilment center is
• Knowledge and experience of the e-commerce logistics chain increase announced and will open end 2Q21
exponentially with the acquisition of an experienced player
41 1Q21 Roadshow presentationRadial North America offers multiple services at a glance – PaLo N. Am.
across the entire e-commerce logistics value chain
Revenues Radial North
share % America assets Description and key strengths
Payment, Tax, Fraud Zero software Processing global payments, • 98.3% approval rate vs. 97.1% industry average
maximizing successful authorization
and Fraud and reconciling tax districts and
• 1.6% manual review rate vs. 25% industry average
Technology
Prevention global duties
16%
Omnichannel 8,700 Stores with fulfilment Optimizing efficiency of order • Ability to handle complex orders
management, ship-from-store and
Technology 12,500 Dropship suppliers in-store pick-up
• < 12 weeks to deployment vs. competition 4-6 months
• Scalability of technology
Warehousing & 21 fulfilment sites Adapting warehouse management • 80%+ orders shipped day 0
and parcels preparation to
fulfilment in North America e-commerce with pragmatic
• ~100% US coverage
automation • Experience of scaling employees / workforce up to ~20k
Operations
peak capacity
75%
Freight 100% Managing a large network of carriers • Rates 5-15% cheaper than in-sourcing for mid-sized players
for a seamless customer experience
Management Asset light • Clients reached in 2.4 days on average
Customer Care 9% 3,400+ Having a single view of customer’s • Advanced data analytics
history and profile combined with
Seats across 4 sites leading self-service tech
42 1Q21 Roadshow presentationRadial North America addressable market at a glance – PaLo N. Am.
Online revenue e-tailers, US Addressable e-commerce logistics sector
$ 800bn1 expected US online retail revenue in 2021
~$ 800bn total Radial’s target $ 53-67bn
US online Retail audience addressable
e-commerce e-commerce e-commerce
$ 2,000m • Mid-market segment
revenue logistics
($ 20-200m online revenue) $ 265-270bn
• Enterprise segment
($ 200-600m)
• Some selected key accounts
$ 20m
($ 600m-$ 2bn)
1 Source: Forrester Data, Online Retail Forecast, 2021
43 1Q21 Roadshow presentationRadial North America competitive landscape at a glance – PaLo N. Am.
Independent e-commerce logistics providers Unique selling proposition
• Radial has 20 years of experience in e-commerce logistics
• It’s one of the few players to provide a one-stop shop
Omnichannel Fulfilment Freight Customer Care
& PT&F across the e-commerce value chain
• These key features are making the difference
‐ Omnichannel & fraud prevention technology, such
as Radial Order Management1 (ROM)
‐ Scale: national US coverage
‐ Quick time to launch
‐ Low start-up costs
‐ Robust service offering
1 for which Radial is positioned amongst the 2021 technology leaders in the global Omnichannel OMS market, according to the Quadrant Knowledge Solutions study
44 1Q21 Roadshow presentationPositive commercial development at Radial and at a glance – PaLo N. Am.
financial results exceeding expectations in 2020
Commercially heading in the right direction FY18 & FY19 results impacted, as expected, by
• We continue to reap benefits from our customer-focused • Churn (mostly in Fulfilment & Transport) and repricing, with
approach, strong new signings in 2019, along with continued revenue growth from new and existing customers not fully
improvement in NPS. Strong 2019 peak with a double-digit compensating revenue loss from clients terminating with Radial.
increase in shipped parcels vs. 2018. • Webstore business phase-out, completed by end FY19
• Starting in 2Q18 and continuing in 2019 and 2020, we are seeing a
positive contract renewal cycle for existing clients. FY20 EBIT uplift driven by high e-commerce
• New contracts signed had a TCV of $ 385m for FY19, which was volumes translating into increased operating
above target and above the previous 3 years ($ 150m in 2016 and leverage
2017, $ 217m in 2018).
• Revenue increase mainly driven by Radial North America
• Very strong TCV development continued in 2020, accelerated by
recording significant growth of existing customers (+26.8%) driven
COVID-19, with $ 1,188m total contract value signed, also
by COVID-19 as well as new clients launched in 2019 (sales more
positively impacted by longer-term contracts.
than tripling), slightly offset by client churn.
• FY20 adjusted EBIT above break-even at € 32.8m for PaLo NA
45 1Q21 Roadshow presentationTo further succeed, at a glance – PaLo N. Am.
PaLo NA will implement 5 initiatives
Transform the functional • Enhanced organization model around client accounts
organization into a client • Cross-functional, agile account team to: (1) proactively & efficiently resolve issues in a coordinated way, (2)
centric one improve client’s ease of navigation and interface and (3) generate business insights for the client
Target the emerging brands • Radial currently has pockets of open space across its network that could fit “small” brands size profile
segment to optimize • Radial drives a sales & marketing approach to compete on this segment through a standardized Value
available fulfillment space Proposition
• Radial is now working on a go-to-market strategy for ROM building on:
Scale-up Radial Order
− Flexibility to support and scale based on evolving market conditions & customer behaviors
Management for the benefit
− Cross selling ROM to existing Radial clients using other services
of all entities of the group
− Leveraging clients references for building brand recognition
Further modernize and • Productivity gains of +10% possible across certain process paths reducing Radial’s cycle time
automate operations with • Automation reduces risk exposure and cost linked to overall hiring needs
Robotics • Scalable tech will help Radial to be flexible and well positioned to capture peaks in coming years
Leverage synergies between • Integrate Landmark for all Radial clients as service offering
the entities of PaLo NA and • Streamline systems
further right size SG&A • Implement labor management systems for fulfillment and increase automation in billing process
46 1Q21 Roadshow presentationE-commerce logistics NA & EU have a joint vision at a glance – PaLo N. Am.
for 2026 and kicked off several concrete workstreams
Ambitions Joint workstreams
VISION
Organizational structure and Joint Client Development
• Bi-directional references and opportunities
2026
governance facilitates decision- • Knowledge sharing on geographies and prospects
making and implementation • Shared marketing strategy and scale
Commercial Effectiveness Support Grow omni-
• Align Sales Ops: Standard Practices, Cadences & Metrics
• Benchmark numbers and KPI’s for NA and EU
Converging view Radial fulfilment • Commercial Systems (e.g., SalesForce)
commerce
model with streamlined revenues and EBIT,
operations and KPIs Fulfilment & Carrier Mgmt methodologies
• Best Practices scaling, automation, workforce
• Leverage relationships with global carriers (e.g., DHL, with a substantial
FedEx, UPS)
• Knowledge sharing about smaller brands operations part in
(e.g., Active Ants)
Improved and aligned technology technology
to support cross-border Technology Development
development • ROM as Global OMS platform
• Aligned WMS & TMS strategy
• Sharing expertise in other tech domains (e.g., PTF)
47 1Q21 Roadshow presentationProject One targets group-wide overhead efficiency at a glance – group
Context Ambition
• The intent is to self-finance our business transformation Reduce the cost/revenue ratio with ONE percent every year through
a focus on value driven spending as part of our DNA
• As bpost group is transforming from a traditional mail company
into an omni-commerce player that competes against other 3PL
players, cost consciousness becomes more than ever important to
embed in every layer of our organization How
• We need to build new ways of doing things and abandon old • Simplify E2E-processes – make bpost group a simpler and future
ones that have lost their value proof organization by inspecting and adapting end to end
processes and encouraging cross-BU cooperation
• Cost clearing / Hygienic cost revision – re-focus the available
resources where possible to support the business transformation
• Promote inter-mobility – focus on re-orientation to jobs with the
highest added value thereby limiting external recruitment
48 1Q21 Roadshow presentationSustainability is at the heart of our activities at a glance – group
3-pillar CSR strategy linked to United Nations
People Proximity Planet Selected awards and recognition
we care about our we are close to the we strive to reduce our
employees and engage society impact on the • EcoVadis (clients index): Gold rating
them environment • Ethibel Indexes: reconfirmed as a constituent of the Ethibel Sustainability Index
(ESI) Excellence Europe since 19/03/2018
• Sustainalytics: score 17.7% (low risk)
Shared Value Creation •
•
MSCI: Score A
Vigeo Eiris: 91% (sector average: 71%)
• Continuity of our business • ISS: Governance Score: 5, Environment Score: 1, Social Score: 3
• Employee satisfaction and engagement • Carbon Disclosure Project: Score B (peer average C)
• Customer satisfaction
• Employee health & • To our community • Green fleet
safety • To our suppliers • Green buildings
• Employee training and
talent development
• To our customers
through our services
• Waste management
Ambitious CO2 reduction targets
• Ethics & diversity
• Social dialogue • Since 2007 bpost group has cut its CO2 emissions by almost 40%
• Target of reducing CO2 emissions from activities by at least 20% by 2030
• By 2030, at least 50% of vehicles will be fully electric
49 1Q21 Roadshow presentationSustainability, the road to a resilient bpost group at a glance – group
Committed member of
the Belgian Alliance for
Climate Action
12 October 2020
Science Based bpost group
Signing of the Targets Target setting
Belgian SDG Public commitment program
Charter to keep Global to set ambitious 2020
CEO engagement to Warming below targets
COP 21 Paris the 2°C threshold
2018-2019
2017
2015 2016
50 1Q21 Roadshow presentationPutting People, Planet & Proximity into ESG at a glance – group
Environment Social Governance
Carbon footprint reduction program COVID response management: ensuring Materiality assessment: involving our
• LNG trucks & Double Deck Trailers our people are safe and protected in stakeholders in our sustainability
accordance with the latest health & roadmap
• Ecozone Mechelen: Low & zero safety regulations
emission delivery —
— Joining the Belgian Alliance for Climate
• LED lighting implementation
Dual Learning: inclusive program Change: exchange of best practices with
• Circular business: recycling more providing low skilled employees with a suppliers and clients
than 10 million kg of e-waste in the formal diploma
Netherlands
51 1Q21 Roadshow presentation1Q21 Results
1Q21 EBIT above expectations, driven by continued volume growth 1Q21
in Parcels & Logistics and lower than expected impact of mail decline
€ million 115.5
-1.7
3.2
15.7
+39.9
20.4
75.6 5.5
112.3
4.6
Adjusted1
Reported
71.0
EBIT Mail & PaLo PaLo Corporate EBIT
1Q20 Retail Eurasia N. America 1Q21
1Adjusted excludes items that are non-recurring in nature and significant (> € 20m). All profits or losses on disposal of activities are adjusted whatever the amount they represent, as well as the amortization and
impairment on the intangible assets recognized throughout the Purchase Price Allocation (PPA) of the acquisitions. Reversals of provisions whose addition had been excluded from income are also adjusted whatever
the amount they represent.
53 1Q21 Roadshow presentationKey financials 1Q21 1Q21
€ million Reported Adjusted1
1Q20 1Q21 1Q20 1Q21 %↑ 1 Amortization and impairments
of intangibles recognized
Total operating income 934.6 1,019.9 934.6 1,019.9 9.1%
during PPA are adjusted,
Operating expenses 797.4 842.7 797.4 842.7 5.7% leading to increase in
EBITDA 137.2 177.2 137.2 177.2 29.2% EBIT (€ +3.2m) and income tax
expense (€ +0.8m)
Depreciation & Amortization 66.1 64.9 61.5 61.7 0.3%
EBIT 71.0 1 112.3 75.6 1 115.5 52.8%
Margin (%) 7.6% 11.0% 8.1% 11.3% 2 Adjusted FCF excludes the cash
Financial result -4.3 -2.5 -4.3 -2.5 -40.8% Radial receives on behalf of its
Profit before tax 71.5 109.8 76.1 113.0 customers for performing billing
48.5% services
Income tax expense 23.6 1 29.2 23.8 1 29.9 25.6%
Net profit 47.9 80.6 52.2 83.0 59.0%
FCF 194.2 2 147.4 246.2 2 160.0 -35.0%
Net Debt at March 31 619.9 388.3 619.9 388.3 -37.4%
Capex 20.5 19.6 20.5 19.6 -4.2%
Average # FTEs and interims 34,695 37,602 34,695 37,602 8.4%
1 Unaudited figures
54 1Q21 Roadshow presentationResults by segment 1Q21 1Q21
€ million
M&R PaLo Eurasia PaLo N. Am. Corp Eliminations Group
External operating income 446.9 283.9 281.1 7.9 0.0 1,019.9
Intersegment operating income 59.9 3.9 0.9 102.6 -167.3 0.0
Total operating income 506.8 287.8 282.1 110.6 -167.3 1,019.9
Operating expenses 414.6 245.5 256.7 93.3 -167.3 842.7
EBITDA 92.2 42.3 25.4 17.3 177.2
Depreciation & Amortization 22.0 5.7 19.2 17.9 64.9
Reported EBIT 70.2 36.6 6.2 -0.6 112.3
Margin (%) 13.9% 12.7% 2.2% -0.6% 11.0%
Adjusted EBIT 70.6 37.3 8.2 -0.6 115.5
Margin (%) 13.9% 13.0% 2.9% -0.6% 11.3%
55 1Q21 Roadshow presentationTop-line decrease driven by COVID-19 impacts on retail 1Q21 – M&R
and lower than expected impact of domestic mail volume decline
M&R external
operating income, € million Domestic Mail Transactional Advertising
Operating income decline at € -3.4m: -9.6% underlying volume decline against -5.4% underlying volume decline against
1Q20 457.8 -8.8% in 1Q20, slightly supported by softer comparable base in Mar-20:
• € -1.0m working days impact,
COVID-19 communication in Mar-21. ‐ -22.4% YTD Feb-21, against tough
• € -21.5m volume (-7.8% underlying comparable base of -3.9% from pre
No change in known structural trends of
1 Transactional -3.1 volume decline) COVID-19 months.
continued e-substitution, higher
• € +19.1m from price and mix impact. acceptance of e-documents at the ‐ +41.1% Mar-21, better than Mar-20 at
receivers’ side and digitization of C2B -39.4% from COVID-19 ban on
Advertising -0.2 communication through mobile apps. promotions and non-essential retail
2
closure during lockdown of Mar-20.
1 2 3 1 2
3 Press -0.1
Proximity and Press Proximity and convenience Value added services
4 convenience -8.2 -1.0% underlying volume decline, retail network Higher revenues from fines solution which
retail network benefiting from a good performance in were negatively impacted during lockdown
Periodicals. Lower Ubiway retail revenues from of Mar-20.
Value added reduced footfall as a result of COVID-19,
5 0.7 especially in travel environments.
services
Decline in banking & finance revenues due
to the low interest rate environment and
1Q21 446.9 less ATM transactions.
-10.8 3 4 5
56 1Q21 Roadshow presentationEBIT increase driven by high parcel volumes handled through 1Q21 – M&R
the mail network and lower than expected impact of mail decline
€ million
Mail & Retail
External operating income
1Q20
457.8
1Q21
446.9
%↑
-2.4%
Key takeaways 1Q21
Transactional 193.3 190.2 -1.6% • Total operating income up € +6.8m (+1.4%) driven by (1) higher
Advertising 47.8 47.6 -0.4%
intersegment operating income related to higher parcels volumes,
Press 86.1 86.0 -0.1%
Proximity and convenience retail network 103.1 94.9 -7.9%
partially compensated by (2) lower Ubiway retail revenues and (3)
Value added services 27.5 28.2 2.7% lower than expected impact of mail volume decline combined with
Intersegment operating income 42.2 59.9 41.8% price increases and mix impact.
Total operating income 500.0 506.8 1.4%
Operating expenses 413.8 414.6 0.2%
• Operating expenses (incl. adjusted D&A) remained nearly stable (€ -
1.3m or +0.3%):
EBITDA 86.1 92.2 7.1%
Depreciation & Amortization 21.6 22.0 2.1%
‐ Higher payroll & interim costs driven by (1) headcount from higher
Reported EBIT 64.6 70.2 8.7% parcel volumes and (2) price impact amongst other from salary
Margin (%) 12.9% 13.9%
indexation, merit increases and phasing holidays; together with
Adjusted EBIT 65.2 70.6 8.4% higher costs for fleet and lower recoverable VAT
Margin (%) 13.0% 13.9%
Additional KPIs ‐ Compensated by the favourable evolution of the FTE wage mix, the
Underlying Mail volume decline -9.9% -7.8% decrease of material costs from Ubiway retail and increased sorting
Transactional -8.8% -9.6% activities cross-charged to PaLo Eurasia driven by growth in parcel
Advertising -16.5% -5.4% volumes handled through the mail network.
Press -5.2% -1.0%
• M&R adjusted EBIT increased by € +5.5m to € 70.6m
57 1Q21 Roadshow presentationYou can also read
