Investor presentation - Third quarter 2020 November - December 2020 - bpost Group
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Investor presentation
Third quarter 2020
November – December
2020
Investor presentation
Third quarter 2020
Contents Financial Calendar
Highlights & guidance 3Q20 results YTD20 results 08.12.2020 (10:30 CET)
3Q20 Highlights – 4 EBIT bridge – 39 EBIT bridge – 53 Strategy update and capital allocation
Outlook 2020 – 5 Key financials – 40 Key financials – 54
Results by segment – 41 Results by segment – 55 09.03.2021 (17:45 CET)
bpost group at a glance Mail & Retail – 42 & 43 Cash flow – 56 Annual results 2020
Investment rationale – 7 Parcels & Logistics Eurasia – 44 & 45
Dividend policy – 8 Parcels & Logistics N. America – 46 & 47 Additional Info 05.05.2021 (17:45 CET)
Overview – 9 Corporate – 48 Key financials FY19 – 58 Quarterly results 1Q21
LT vision & strategic aspirations – 10 Cash flow – 49 Results by segment FY19 – 59
Management – 11 Balance sheet – 50 Relationship with State – 60
Sustainability – 12-14 Financing Structure & Liquidity – 51 USO & SGEI – 61
Mail & Retail – 15-23 European mail market – 62
Parcels & Logistics Eurasia – 24-32 Key contact – 63 More on corporate.bpost.be/investors
Parcels & Logistics N. America – 33-37
Disclaimer
This presentation is based on information published by bpost group in its Third Quarter 2020 Interim Financial Report made available on November 3rd, 2020 at 5.45pm CET and in its 2019 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 3Q20 Roadshow presentation
Highlights 3Q20 Guidance 2020
Highlights of 3Q20 3Q20
Strong e-commerce driven performance in PaLo Eurasia and North America
further accelerates the mix shift and drives 2020 outlook upgrade
2020 group
Group operating Mail & Retail Parcels & Logistics Parcels & Logistics adjusted EBIT
income Eurasia N. Am. at least € 270m
€ 972.9m € 35.7m € 29.7m € 8.7m including
up 10.4% 7.7% EBIT margin 11.3% EBIT margin 2.9% EBIT margin ransomware
• Total operating income at • Total operating income at • Total operating income at attack
€ 463.7m (-4.6%) driven by € 263.1m (+32.7%) driven € 295.9m (+22.6%) driven
COVID-19 impact on retail by thriving e-commerce by continued strong
and by deconsolidation of both domestically (Parcels momentum in E-commerce
Alvadis BeNe +33.1%) and abroad logistics S&P reaffirms
(Cross-Border +36.0%)
• Underlying mail volume • Adjusted EBIT increase the long- &
Group adjusted decline proving resilient at • Parcels B2X organic (€ +14.0m) mainly driven by
short-term
EBIT -8.2% and better than pre- volumes +49.0% from operating leverage in
COVID-19 guided -9 to continued strong e- E-commerce logistics credit rating at
€ 69.5m -11% range commerce development • Following ransomware
A/A-1, outlook
up 81.5% • Limited adjusted EBIT • Adjusted EBIT up € +19.4m attack on Radial NA on Oct.
7.1% EBIT margin
decline (€ -2.7m) driven by and nearly tripling. Strong 15th, 2020, Radial has stable
stellar growth in parcel margin improvement driven managed to regain sufficient
volumes handled through by stellar growth in parcel functionality to restart Note: COVID-19 impacts not
the mail network for PaLo volumes handled through fulfilment operations at all separately disclosed as
increasingly artificial and less
Eurasia the mail network locations meaningful
4 3Q20 Roadshow Presentation
2020 group EBIT outlook revised upwards Outlook FY20
Group Dividend
FY20 group adjusted EBIT can be revised upwards to at least € 270m, including The updated capital allocation framework, including new dividend policy, will be
the estimated financial impact of the ransomware attack at Radial North communicated to the market on December 8th, 2020.
America. Due to the second wave of the pandemic and lockdown measures
taken, the visibility for 4Q20 is however limited.
Contribution per Business Unit will differ from the initial outlook issued in March.
Gross capex of € 150m maximum (vs. up to € 200m pre-COVID-19)
COVID-19 disclaimer
Given ongoing limited visibility about the duration and severity of the pandemic and its different impacts across the globe, the revised outlook could still be impacted by
these uncertainties or any event deriving thereof.
5 3Q20 Roadshow Presentation
bpost group at a glance
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 continue to transform the mail and Multiple levers for Experienced Growth in A solid balance
proximity business in the home market to transformation of management e-commerce sheet with single
sustain solid cashflows the legacy team with logistics & 'A' credit rating
business: natural embedded parcels: aspired
attrition, financial discipline sizeable share of
alternating and a strong revenues
distribution business
model, stable and transformation
predictable track record
We develop sustainable activities in the regulation,
high growth e-commerce logistics & network
parcels business in our optimization,…
Belgium/Netherlands home market and
key geographies in Europe and North
America
7 3Q20 Roadshow presentation
We create value for shareholders at a glance – group
Capital allocation and dividend policy are under review with new policy to be communicated on Dec. 8th, 2020
Dividend Policy
• IPO dividend policy until 2019: Minimum 85% of BGAAP net profit of the
mother company bpost SA/NV (unconsolidated). This policy is now
suspended.
• Dividend on FY19 results limited to interim dividend due to COVID-19 crisis
• Board will recommend not to grant a dividend on FY20 results to preserve 1.26 1.29 1.31 1.31 1.31
the strength of bpost’s balance sheet, cash reserves and capacity to invest on 1.13
0.22 0.24 0.25 0.25 0.25
the long term. 0.20
• Updated dividend policy: A new dividend policy will be decided by the Board
when the longer-term impact of the COVID-19 crisis becomes clear. 0.62
1.04 1.05 1.06 1.06 1.06
0.93
Dividend is constrained by net results of a given year
(in BGAAP) + distributable reserves 2013 2014 2015 2016 2017 2018 2019
Pay-out ratio
Distributable reserves (€ 199m end 2019) 91% 85% 90% 85% 90% 100% 72%
built gradually as from 2013, primarily to neutralize the non-recurring impact of
exceptional costs Final gross DPS (€) Interim gross DPS (€)
8 3Q20 Roadshow presentation
A diversified mail operator with a footprint in at a glance – group
e-commerce logistics
Revenues % of total
€ 3,837.2m1 € 310.8m
Transactional mail € 748m 19%
Mail & Retail Advertising mail € 236m 6%
revenues 8.1% € 1,897m
EBIT 49% Press € 344m 9%
Proximity and convenience retail network € 465m 12%
€ 537.0m € 181.2m Value added services € 104m 3%
14.0% net profit
EBITDA Parcels & Logistics Parcels Be-Ne € 381m 10%
Europe & Asia E-commerce logistics € 133m 3%
35,377 € 813m
21% Cross-border € 300m 8%
average
# FTE & interims
Parcels & Logistics
E-commerce logistics € 1,018m 26%
North America
€ 1,098m International mail € 87m 2%
29%
2019 figures (adjusted)
1 49.4% Mail & Retail, 21.2% Parcels & Logistics Europe & Asia, 28.6% Parcels & Logistics North America and 0.8% Corporate revenue
9 3Q20 Roadshow presentation
Long-term vision & strategic aspirations at a glance – group
”Beyond mail, be an efficient global e-commerce logistics player anchored in Belgium”
1 2 3
Mail services to citizens and Drive profitable growth in Optimize Radial to deliver in
State remain core and will Parcels BeNe and further the promising North
continue to generate profit develop e-commerce logistics American e-commerce
with a more adapted in Europe market
distribution model
10 3Q20 Roadshow presentationOur experienced management team has at a glance – group
responsibilities down to the bottom-line
Jean-Paul Van Avermaet Luc Cloet Kathleen Van Beveren Henri de Romrée
Group CEO CEO Mail & Retail CEO Parcels & Logistics Europe & Asia CEO Parcels & Logistics North
America
Mark Michiels Leen Geirnaerdt Dirk Tirez Nico Cools
CHRO CFO CLO CIO
11 3Q20 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 • IPC EMMS Scorecard 2019 (sector index): #3
them environment • EcoVadis (clients index): Gold rating
• Ethibel Indexes: reconfirmed as a constituent of the Ethibel Sustainability Index
(ESI) Excellence Europe since 19/03/2018
Shared Value Creation •
•
Sustainalytics: score 17.7% (low risk)
MSCI: Score A
• Continuity of our business • Vigeo Eiris: 91% (sector average: 71%)
• Employee satisfaction and engagement • ISS: Governance Score: 5, Environment Score: 1, Social Score: 3
• Customer satisfaction • Carbon Disclosure Project: Score B (peer average C)
• 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
12 3Q20 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
13 3Q20 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
14 3Q20 Roadshow presentationMail & Retail at a glance – M&R
at a glance
Sub-segments Revenues 2019, €m Key facts & figures
748
Transactional mail
~7.1m
letters handled daily
236
Advertising mail
~20.1k
344 operational FTEs
Press
465
Servicing 5m
Proximity and convenience retail network letter boxes
Value added services
104 5
industrial sorting centers
1,897
Total ~2,300
points of presence in Belgium
15 3Q20 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 2020 (ex-COVID-19)
Share of mail volume decline compensated 18-45% >50%1
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; Expected extension
compensation contractually set
on 6th Management contract
Evolution of operating model Fixed D+1 Flexible,
(mail collect and distribution) based model differentiated offering
(everywhere, everyday) (prior vs. non-prior.)
1 58% in 2019
16 3Q20 Roadshow presentationDomestic mail volume decline expected to accelerate from at a glance – M&R
-7.9% in 2019 up to ~-9% to -11% in 2020 (ex-COVID-19 impact)
2013 2014 2015 2016 2017 2018 20191 YTD20
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
-12.2% corporates and SMEs
Transactional mail -3.7%
-5.0%
• Intensifying competition in
-5.3%
advertising media
-5.9% -5.7%
-8.1% -9.2%
-11.5%
1.5% • Shift to digital for newspapers
& magazines
-3.0% -3.0% -4.7%
Advertising mail -4.9%
• Service level elasticity
-7.2%
-9.1%
-18.4% from the implementation of the
Alternating Distribution Model
Press -3.0% -2.8% -2.8% -2.8%
-3.7% -3.8%
-6.5% -6.2%
1 As of start FY19 Transactional Mail excludes outbound and Press includes Ubiway press distribution
17 3Q20 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): for the • Price cap2 = inflation - (volume evolution +
• Collect and deliver 5x per week provision of certain SGEIs, i.e. maintenance of cost reduction factor x efficiency gains
• Cover full territory of Belgium for collection and retail network, cash at counter, cash payment of sharing factor)
pensions at home
delivery of items belonging to universal service • Volume and operational discounts allowed for
• Apply uniform tariffs and an identical service • 2 press concessions (2016-2020 extended for 2 other USO products (bulk)
years until end 2022): (1) for distribution of
across the territory • Price increases done in practice on a yearly
periodicals and (2) for distribution of basis: +5.1% on average in 2020 on all domestic
newspapers mail items; +6.0% on average for 2021
1 Refer to slide 60 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
18 3Q20 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%
logic measured in April of the years
n-1 and n-2
negative volume trend on the Small
User Basket
(i.e., 1/3 of 2.8% efficiency
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%
19 3Q20 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
1 2018 was at 70%, 2019 was 58% regulator regulated products
20 3Q20 Roadshow presentationManagement 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)
21 3Q20 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 ~55Labor cost will benefit from decrease of mail at a glance – M&R
related FTEs and optimized employee mix
Operational FTE evolution1 Age pyramid Natural
attrition
Average FTEs and interims, ‘000 Headcount bpost SA/NV per age, 31/12/19
Average
18.8 19.3 20.0 20.1 9,633 9,739
natural attrition
Non pay-scale contractuals
Allocated
6,787 is expected to
Pay-scale contractuals
to mail 80-85% range from
Civil servants
Allocated 1,200 to 1,300
to parcels FTEs/year
15-20%
2016 17 18 19 0-39 40-49 50+
Operational FTE mix evolution1 Average cost per contract type1
Indexed
Other 8% 10% 10% 9%
18% 17% 17% 16%
Contractual
Contractual ~95
Auxiliary
34% 39% 42% 47%
postman
Auxiliary
~74
postman
Civil servant 39% 35% 31% 28%
Civil servant 100
16 17 18 19
1 bpost SA/NV scope, excluding retail network
23 3Q20 Roadshow presentationParcels & Logistics Europe and Asia at a glance – PaLo Eurasia
at a glance
Sub-segments Revenues 2019 (€m) Key facts & figures
• Last-mile B2C delivery in the Peak days of up to
Parcels BeNe 381 Benelux 530k parcels during COVID-19
• Total of ~74m parcels in 2019 lockdown
• Mostly fulfilment & transport Fulfilment footprint
activities in Europe spread over 8
E-commerce logistics 133 commercial locations
• Activities include Radial EU, Active
Ants and DynaFix
covers over 8 commercial locations
• International mail & parcels across 5 countries in Europe
300 • Majority of cross-border volume is
Cross-border
inbound mail and parcels from 3 main cross-border
Europe and Asia
activity centers
Total 813
i.e. Brussels brucargo, Heathrow UK
and Hong Kong
24 3Q20 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
2016-2018
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 US and Active
logistics 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
25 3Q20 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
26 3Q20 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 • >250 parcel lockers in Belgium
~9% (2 new parcel lockers every week in 2020)
• Click & Collect
~4%
• Non-exclusive partnerships with DPDHL for B2C parcel delivery into
Belgium (from Germany/France & Benelux)
B2C / C2X B2B
1 Source: Effigy
27 3Q20 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
28 3Q20 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
29 3Q20 Roadshow presentationSupported by acquisitions, bpost group has initial 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
30 3Q20 Roadshow presentationE-commerce logistics activities in Europe can be at a glance – PaLo Eurasia
developed thanks to an already strong European footprint
8 ~1,200
Commercial fulfilment FTEs
centers / facilities
The
UK Netherlands
Germany
Poland
Belgium
Italy 5 ~€ 133m
Countries 2019 revenue
Cold chain facility Fulfilment sites Personalized logistics
31 3Q20 Roadshow presentationE-commerce logistics in Europe has 2 complementary at a glance – PaLo Eurasia
engines of growth i.e. Radial Europe and Active Ants
1
Type of clients E-tailers & click-and-mortar (omnichannel) Pure e-tailers
Size of clients Medium/large Small/medium
Level of automation Lower, depends on client High (AutoStore + automated packaging)
Level of Customization High, product and price tailored by client Very low
Current locations UK, Germany, Belgium, The Netherlands, Italy and Poland The Netherlands
Leveraging knowledge and Leveraging NL success story
experience from Radial US in other European countries
1 Including Landmark Global and Belgium fulfilment
32 3Q20 Roadshow presentationParcels & Logistics North America at a glance – PaLo N. Am.
at a glance
Sub-segments Revenues 2019, €m
US e-commerce logistics Capabilities to support
Objectives
provider fulfilling 72m mid-sized e-tailers to
parcels p.a. with proven expand cross-border and • Growth engine for bpost
E-commerce logistics1 1,008 client base, IT last-mile distribution in group, to be a leading
infrastructure and Canada and Australia e-commerce logistics
capabilities along the E2E
value chain player in US
• Grow with cross-border
International mail
89 solutions and catalogue commerce
International Mail2
fulfilment through US
companies • International mail
providers delivering
profit through
infrastructure
Total 1,098 optimization
1 Radial North America, Landmark Global, Apple Express and FDM
2 MSI, Imex, Mail Inc. = The Mail Group
33 3Q20 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 is at > $ 1bn YTD20 (Sept.)
• Transatlantic e-commerce is growing at >25% p.a. with 20% of European
parcels coming from the US • ~7,100 average # of FTEs & interims (2019)
• 21 fulfilment centers mainly in the US, a 22nd fulfilment center is
Knowledge and experience announced and will open end 2Q21
• Knowledge and experience of the e-commerce logistics chain increase
exponentially with the acquisition of an experienced player
34 3Q20 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
17%
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
74%
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
35 3Q20 Roadshow presentationRadial North America market dynamics at a glance – PaLo N. Am.
and competitive landscape
Addressable e-commerce logistics sector
Online revenue e-tailers, US
~$ 680bn total Radial’s target $ 45-57bn
$ 680bn1 expected US online retail revenue in 2020
US online Retail audience addressable
e-commerce e-commerce e-commerce
revenue logistics
$ 225-230bn
$ 2,000m • Mid-market segment
($ 20-200m online revenue) Independent e-commerce logistics providers
• Enterprise segment Omnichannel Fulfilment Freight Customer Care
($ 200-600m) & PT&F
• Some selected key accounts
$ 20m
($ 600m-$ 2bn)
1 Source: Forrester Data, Online Retail Forecast, 2020
36 3Q20 Roadshow presentationPositive commercial development at Radial at a glance – PaLo N. Am.
and financial results in line with expectations
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. FY19 results in line with expectations
• New contracts signed had a TCV of $ 385m for FY19, which was
• Good end of year 2019 peak management, with productivity gains
above target and above the previous 3 years ($ 150m in 2016 and
partly offset by higher costs related to maintaining a sufficient
2017, $ 217m in 2018).
labor pool within a tight US labor market.
• Very strong TCV development continued through YTD20,
accelerated by COVID-19, with $ 1,156m total contract value
signed.
Significant growth at existing clients and 2019
new business in YTD20 (partly COVID-19 driven)
• YTD20 adjusted EBIT above break-even at € 18.8m for PaLo NA
37 3Q20 Roadshow presentation3Q20 Results
3Q20 EBIT nearly doubles driven by high growth in 3Q20
Parcels & Logistics Eurasia and North America
€ million 0.5
69.5
4.4
14.0
+31.2
19.4
38.3
4.0 -2.7
65.1
or € +21.1m when excluding
3Q19 € +1.7m contingent
considerations reversal on
Adjusted1
34.3 Dynagroup
Reported
EBIT Mail & PaLo PaLo Corporate EBIT
3Q19 Retail Eurasia N. America 3Q20
1 Adjusted previously called Normalized, change of terminology “Adjusted” in order to align the label of this APM to the ESMA guidelines, definition and approach remain unchanged. Adjusted 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.
39 3Q20 Roadshow presentationKey financials 3Q20 3Q20
€ million Reported Adjusted1 1 Adjustment of € -0.6m at operating
3Q19 3Q20 3Q19 3Q20 %↑ income level related to the disposal of
Alvadis on August 30, 2019
Total operating income 1 881.5 972.9 1 880.9 972.9 10.4%
Operating expenses 783.0 840.1 783.0 840.1 7.3%
EBITDA 98.5 132.8 97.9 132.8 35.7% 2 Amortization of intangibles recognized
during PPA is adjusted, leading to
Depreciation & Amortization 64.2 67.8 59.6 63.3 6.3% increase in EBIT (€ +4.4m) and income
EBIT 34.3 2 65.1 38.3 2 69.5 81.5% tax expense (€ +0.3m)
Margin (%) 3.9% 6.7% 4.3% 7.1%
Financial result -12.4 -11.5 -12.4 -11.5
3 Adjusted FCF excludes the cash Radial
Profit before tax 27.1 59.2 31.1 63.6 104.7% receives on behalf of its customers for
performing billing services
Income tax expense 13.8 2 14.8 14.0 2 15.1 7.4%
Net profit 13.4 44.4 17.0 48.6 184.8%
FCF -15.8 3 -9.1 -9.7 3 33.0 -
Net Debt at 30 September 751.3 597.6 751.3 597.6 -20.5%
Capex 47.6 41.1 47.6 41.4 -12.8%
Average # FTEs and interims 34,976 38,274 34,976 38,274 9.4%
40 3Q20 Roadshow presentationResults by segment 3Q20 3Q20
€ million
M&R PaLo Eurasia PaLo N. Am. Corp Eliminations Group
External operating income 414.3 259.5 294.9 4.2 0.0 972.9
Intersegment operating income 49.4 3.6 1.0 86.2 -140.2 0.0
Total operating income 463.7 263.1 295.9 90.4 (140.2) 972.9
Operating expenses 405.8 228.2 269.2 77.0 -140.2 840.1
EBITDA 57.8 34.9 26.7 13.4 132.8
Depreciation & Amortization 22.7 5.9 21.1 18.1 67.8
Reported EBIT 35.1 29.0 5.6 -4.7 65.1
Margin (%) 7.6% 11.0% 1.9% -5.2% 6.7%
Adjusted EBIT 35.7 29.7 8.7 -4.7 69.5
Margin (%) 7.7% 11.3% 2.9% -5.2% 7.1%
41 3Q20 Roadshow presentationTop-line decline driven by COVID-19 impact on retail 3Q20 – M&R
and by deconsolidation of Alvadis
M&R external
operating income, € million Domestic Mail Transactional Proximity and convenience
Operating income decline at € -8.7m i.e. Good resistance of transactional mail retail network
3Q19 444.5 € -20.9m volume (-8.2% underlying volumes with -8.3% underlying volume
volume decline), and € +12.1m price/mix. decline driven by the known structural Decrease mainly driven by:
trends of continued e-substitution by big ‐ Ubiway retail revenues mainly
senders and SMEs, higher acceptance of impacted by reduced footfall from
1 Transactional -0.5
e-documents at the receivers’ side and COVID-19, especially in travel
digitization of C2B communication environments
through smartphone apps. ‐ 2-month Alvadis deconsolidation
2 Advertising -4.9 effect (€ -5.4m) until 31 August 2020
‐ Decline in banking & finance
1 2 3 1 4
revenues
3 Press -3.4
Proximity and Advertising Press Value added services
4 convenience -20.7
retail network -9.4% underlying volume decline driven by -5.4% underlying volume decline driven by Lower revenues from data and document
continued recovery in unaddressed e-substitution and rationalization. management partly compensated by
Value added advertising mail aimed at driving traffic to higher revenues from European license
5 -0.7 the store, while Direct Mail sales is plates.
services
impacted by ongoing limited visibility due
to COVID-19 uncertainties.
3Q20 414.3
-30.1 2 3 5
42 3Q20 Roadshow presentationLimited M&R EBIT decline driven by stellar growth in parcel 3Q20 – M&R
volumes handled through the mail network for PaLo Eurasia
Key takeaways 3Q20
€ million
Mail & Retail 3Q19 3Q20 %↑
External operating income 444.5 414.3 -6.8%
Transactional 168.8 168.3 -0.3% • Total operating income decline of € -22.3m or -4.6% (€ -21.7m
Advertising 50.8 45.9 -9.7%
adjusted) primarily driven by lower Proximity and convenience retail
Press 82.1 78.7 -4.1%
Proximity and convenience retail network 116.9 96.2 -17.7%
network revenues and mail volume decline, partly compensated by
Value added services 25.9 25.2 -2.6% mail pricing and higher intersegment operating income related to
Intersegment operating income 41.6 49.4 18.8% higher parcels volumes.
Total operating income 486.0 463.7 -4.6%
• Operating expenses (incl. adjusted D&A) declined by € +19.0m (-4.3%):
Operating expenses 426.9 405.8 -4.9%
EBITDA 59.1 57.8 -2.2% ‐ Higher payroll & interim costs driven by (1) increased headcount
Depreciation & Amortization 20.7 22.7 9.9%
mainly from higher parcel volumes and absenteeism and (2) higher
Reported EBIT 38.5 35.1 -8.6% price from regular salary indexation; together with specific COVID-19
Margin (%) 7.9% 7.6%
opex (€ 1.6m) incl. bad debt
Adjusted EBIT 38.4 35.7 -7.1%
Margin (%) 7.9% 7.7% ‐ More than compensated by lower material costs from Ubiway retail
Average # FTEs and interims 23,070 24,092 4.4% incl. Alvadis deconsolidation impact, increased sorting expenses
Additional KPIs
transferred to PaLo Eurasia driven by growth in parcel volumes
Underlying Mail volume decline -7.8% -8.2%
handled through the mail network, lower project-related costs and
Transactional -9.2% -8.3% lower use of sub-contractors.
Advertising -6.5% -9.4%
Press -3.4% -5.4% • M&R adjusted EBIT declined by € -2.7m to € 35.7m.
43 3Q20 Roadshow presentationPaLo Eurasia revenue driven by thriving 3Q20 – PaLo Eurasia
e-commerce both domestically and abroad
PaLo Eurasia external
operating income, € million
Parcels BeNe E-commerce logistics Cross-border
Parcels B2X1 revenues up 45.3% Revenue evolution mainly driven Strong revenue development
3Q19 195.1
driven by volume growth of +49.0% by: driven by:
fuelled by continued strong e- ‐ Active Ants growth at existing ‐ Continued exponential growth of
commerce development customers as well as the Asian parcel volumes with
accelerated by COVID-19.
1 Parcels BeNe 31.3 integration of MCS Fulfilment as revenues more than tripling YoY
Total Parcels BeNe revenues up from October 1, 2019 linked to rail transport of
€ 31.3m (+33.1%) or € +32.9m containers as an alternative to air
‐ Radial Europe growth of UK sales
excluding last year’s positive effect freight
both from existing and new
E-commerce of the reversal of the contingent
2 8.5 clients and opening of new ‐ Partly offset by declining cross-
logistics consideration of Dynagroup fulfilment site in Poland border postal business where
(€ 1.7m). Dilution of the revenue
growth in inbound parcels could
growth % vs. parcels B2X revenue not fully compensate the decline
growth is explained by flattish YoY
3 Cross-border 24.6 in both inbound & outbound
revenue development of business mail volumes
not captured in Parcels B2X, driven
among others by LY’s closure of
non-profitable businesses.
3Q20 259.5
+64.5 1 2 3
1 Since 3Q20, volume growth % consists of B2X parcels, not including Euro-Sprinters, CityDepot, Future Lab and Dynagroup.
Restated 1Q20 and 2Q20 are respectively at +25.2% and +79.3%, leading to 51.5% YTD20.
44Stellar growth in parcel volumes handled through the mail 3Q20 – PaLo Eurasia
network drives steep EBIT margin improvement
Key takeaways 3Q20
€ million
Parcels & Logistics Europe and Asia 3Q19 3Q20 %↑
External operating income 195.1 259.5 33.1%
Parcels BeNe 94.4 125.6 33.1% • Total operating income up € +64.8m or +32.7% (€ +66.5m or 33.8%
E-commerce logistics 32.3 40.8 26.5%
excl. last year’s € 1.7m contingent considerations reversal on
Cross-border 68.4 93.0 36.0%
Intersegment operating income 3.2 3.6 11.1%
Dynagroup) driven by positive development in all revenue lines,
especially Parcels BeNe (€ +31.3m, +33.1%) and Cross-border
Total operating income 198.3 263.1 32.7%
Operating expenses 183.5 228.2 24.4%
(€ +24.6m, +36.0%).
EBITDA 14.8 34.9 136.2% • Operating expenses (incl. adjusted D&A) were up € -45.4m
Depreciation & Amortization 5.1 5.9 14.8%
(+24.2%), mainly explained by higher volume-linked variable costs
Reported EBIT 9.7 29.0 200.2% translating into increased payroll, interim and transport costs across
Margin (%) 4.9% 11.0%
all business lines. PaLo EA also recorded higher intersegment
Adjusted EBIT 10.4 29.7 187.2% operating expenses from M&R driven by solid parcels growth in the
Margin (%) 5.2% 11.3%
integrated last-mile mail & parcels network.
Average # FTEs and interims 3,230 3,507 8.6%
Additional KPIs • Adjusted EBIT increased by € +19.4m, nearly tripling to reach
Parcels volume growth1 21.1% 49.0% € 29.7m. Excluding last year’s contingent considerations reversal on
Dynagroup, adjusted EBIT was up € +21.0m operationally. The steep
margin improvement is explained by stellar growth in parcel volumes
handled through the mail network.
1 3Q19 restated to reflect Parcels B2X volume growth
45 3Q20 Roadshow presentationParcels & Logistics North America driven by 3Q20 – PaLo N. Am.
continued strong e-commerce development
PaLo North America external
operating income, € million
E-commerce logistics International mail
YoY increase of +25.2% (+31.6% at Revenues flat YoY (+5.1% at
3Q19 239.9 constant exchange rate). constant exchange rate) with lower
Revenue increase mainly driven by volumes in the business mail
Radial NA benefitting from segment compensated by higher
changing e-commerce shopping domestic parcels revenues from
habits due to COVID-19 concerns. new contract wins.
E-commerce
1 55.0 Growth mainly driven by existing
logistics
customers (+34%) as well as
customers launched in 2019, slightly
offset by client churn.
Cross-border activities (Landmark,
International
2 0.0 Apple Express & FDM) benefitted
mail
from new client wins and increased
e-commerce business overall,
leading to higher sales from
existing customers.
3Q20 294.9
1 2
1 Combination IMEX, Mail Inc & MSI
+55.0
46 3Q20 Roadshow presentationSharp EBIT uplift driven by Radial North America 3Q20 – PaLo N. Am.
Key takeaways 3Q20
€ million
Parcels & Logistics North America 3Q19 3Q20 %↑
External operating income 239.9 294.9 22.9%
E-commerce logistics 218.4 273.4 25.2% • Total operating income increase of € +54.5m or +22.6% (+28.9% at
International mail 21.4 21.4 0.0%
constant exchange rate) fully driven by e-commerce logistics which
Intersegment operating income 1.5 1.0 -31.5%
continues to benefit from strong momentum.
Total operating income 241.4 295.9 22.6%
Operating expenses 229.7 269.2 17.2% • Operating expenses (incl. adjusted D&A) increased by € -40.5m
EBITDA 11.6 26.7 129.1% (€ -52.6m excl. FX) resulting from volume-driven higher variable
Depreciation & Amortization 20.2 21.1 4.2% labour and transportation costs, higher fixed payroll and benefits,
Reported EBIT -8.6 5.6 - COVID-19 related expenses and increased D&A from additional
Margin (%) -3.6% 1.9%
fulfilment sites. This was partly compensated by higher productivity
Adjusted EBIT -5.3 8.7 - and benefits from our cost savings program as well as cost
Margin (%) -2.2% 2.9%
containment measures in general.
Average # FTEs and interims 7,059 9,102 28.9%
• Adjusted EBIT up € +14.0m to € 8.7m mainly driven by positive
Additional KPIs, adjusted
Radial North America revenue, $m 195.3 261.8 34.1%
operating leverage in E-commerce logistics, in particular at Radial.
Radial North America EBITDA, $m 5.1 21.2 315.7%
Radial North America EBIT, $m -11.2 3.2
47 3Q20 Roadshow presentationCorporate EBIT slightly above last year 3Q20 – Corporate
driven by higher building sales
Key takeaways 3Q20
€ million
Corporate 3Q19 3Q20 %↑
External operating income 2.2 4.2 92.9%
Intersegment operating income 88.6 86.2 -2.7% • External revenues up by € +2.0m driven by higher building sales.
Total operating income 90.8 90.4 -0.4%
Operating expenses 77.8 77.0 -1.0% • Operating expenses (incl. D&A) decreased by € +0.8m driven by
EBITDA 13.0 13.4 3.4% lower demand for services from the different operational Business
Depreciation & Amortization 18.2 18.1 -0.3% Units (€ -2.4m intersegment operating income). Net of the
Reported EBIT -5.2 -4.7 - intersegment operating income, opex (incl. D&A) increased by
Margin (%) -5.7% -5.2% € -1.6m mainly driven by higher provisions.
Adjusted EBIT -5.2 -4.7 -
Margin (%) -5.7% -5.2% • As a result, adjusted EBIT increased by € +0.5m YoY to € -4.7m.
Average # FTEs and interims 1,617 1,574 -2.7%
48 3Q20 Roadshow presentationIncreased FCF1 thanks to strong operating activities 3Q20
Reported - € million
3Q19 3Q20 Delta
+ Cash flow from operating activities 31.8 28.4 -3.4
out of which CF from operating activities before ∆ in WC & provisions 85.6 93.6 8.0
+ Cash flow from investing activities -47.5 -37.5 10.0
= Free cash flow -15.8 -9.1 6.6
+ Financing activities -46.8 -47.2 -0.5
=
Net cash movement -62.5 -56.4 6.1
Capex -47.6 -41.4 6.1
CF from operating activities CF from investing activities
€ +8.0m variance in CF from operating activities before change in working capital and Disposal of Alvadis in 3Q19: € -5.9m
provisions, mainly thanks to higher EBITDA (€ +34.3m) partially offset by higher tax
M&A activities in 3Q19: € +7.3m (contingent consideration Dyna and
prepayments (€ -19.0m)
purchase AtoZ and MCS)
Change in working capital and provisions (€ -11.4m) of which :
Capex at € 41.4m decreased by € +6.1m vs 3Q19 and was mainly
- More cash outflows relating to collected proceeds due to clients in Radial: € -36.2m, high spent on increased capacity for e-commerce: Radial and Active Ants
level of merchandise sales in COVID-19 period additional sites and Parcels B2X sorting capacity
- € +23.1m improvement in working capital evolution: primarily driven by higher settlements of
receivables due to increased sales in 2Q20 partially offset by outflow related to social security
deferred to 3Q20 and lower supplier balances 1 Free cash flow = cash flow from operating activities + cash flow from investing activities
49 3Q20 Roadshow presentationBalance Sheet 3Q20
€ million € million
Assets Dec 31, 2019 Sep 30, 2020 Equity and Liabilities Dec 31, 2019 Sep 30, 2020
PPE 1,133.6 1,109.6 Total equity 682.6 765.5
Intangible assets 898.3 860.8 Interest-bearing loans & borrowings (incl.Bank overdraft) 1,449.9 1,453.6
Investments in associates and joint ventures 239.5 239.1 Employee benefits 320.6 311.2
Other assets 41.8 43.4 Trade & other payables 1,278.5 1,175.1
Trade & other receivables 759.0 638.1 Provisions 29.8 28.5
Inventories 34.7 36.7 Derivative instruments 1.3 0.7
Cash & cash equivalents 670.2 856.1 Other liabilities 14.3 49.4
Total Assets 3,777.1 3,783.9 Total Equity and Liabilities 3,777.1 3,783.9
Main balance sheet movements
Trade & other receivables decreased mainly due to the settlement of the SGEI receivable in the first quarter.
Trade & other payables decreased mainly due to the decrease of trade payables and social payables. The decrease of the trade payables was mainly explained by the cost containment
actions in 2020, partially offset by the positive impact of extended payment terms in 2Q20 and 3Q20 due to COVID-19.
Total equity increased in line with the realized profit (€ 135.9m), partially offset by the fair value adjustment of bpost bank’s bond portfolio (€ 14.0m), the exchange differences on
translation of foreign operations (€ 26.4m) and the net impact of the integration of Active Ants International comprising the non-controlling interests and the recognition of the
contingent consideration for the purchase of the remaining shares (€ 14.6m).
Other liabilities increased due the lower advanced tax payment.
50 3Q20 Roadshow presentationFinancing Structure & Liquidity 3Q20
€ million € million
Available Liquidity Dec 31, 2019 Sep 30, 2020 External Funding Dec 31, 2019 Sep 30, 2020
Cash & cash equivalents 670.2 856.1 Long-ter m
Cash in network 163.6 134.8 Long-term bond1 (1.25% - 07/2026) 650.0 650.0
Transit accounts 105.8 42.7 Bank loans 183.2 176.2
Cash payment transactions under execution -26.7 -7.1 Amortizing Loan (€ 100m) - 12/2022 18.2 18.2
Bank current accounts 377.4 486.6 Term Loan ($ 185m) - 07/2023 165.0 158.0
Short-term deposits 50.0 199.0
Undrawn revolving credit facilities 375.0 375.0 Shor t-ter m
Syndicated facility - 10/2024 300.0 300.0 Bank loans: Amortizing Loan (€ 100m) - 12/2022 9.1 9.1
Bilateral facility - 06/2025 75.0 75.0 Commercial Papers 164.5 165.1
Total Available Liquidity 1,045.2 1,231.1 Total External Funding 1,006.8 1,000.4
Liquidity: Cash & Committed credit lines External Funding & Debt Amortization (excl. IFRS16 lease liabilities)
Total available liquidity at September 30, 2020 consisted out of € 856.1m cash & cash equivalents Out of € 1,000.4m external funding on balance sheet at September 30, 2020:
of which € 685.6m is readily available on bank current accounts and as short-term deposits.
‐ € 165.1m need to be repaid or will be rolled over between 4Q20 and 1Q21
In addition, bpost group has 2 undrawn revolving credit facilities for a total amount of € 375.0m. (i.e. commercial paper with maturity ranging between 1 to 6 months).
‐ € 9.1m during 4Q20 (i.e. the current portion of the amortizing loan).
1 € 650m long-term bond with a carrying amount of € 643.3m, the difference being the re-offer price and issuance fees.
51 3Q20 Roadshow presentationYTD20 Results
YTD20 EBIT impacted by significant COVID-19 related mail YTD20
volume decline, partly compensated by strong PaLo performance
€ million 241.6
15.0 -21.5
-12.2 220.1
32.5 13.7
-69.0
27.1 or € +7.7m when excluding
2Q19 € 19.9m gain on HQ
disposal
226.6
or € +28.8m when 206.4
excluding 3Q19 € +1.7m
contingent considerations
Adjusted1 reversal on Dynagroup
Reported
EBIT Mail & PaLo PaLo Corporate EBIT
YTD19 Retail Eurasia N. America YTD20
1 Adjusted previously called Normalized, change of terminology “Adjusted” in order to align the label of this APM to the ESMA guidelines, definition and approach remain unchanged. Adjusted 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 3Q20 Roadshow presentationKey financials YTD20 YTD20
€ million Reported Adjusted1 1 Adjustment of € -0.6m at operating
YTD19 YTD20 YTD19 YTD20 %↑ income level related to the disposal of
Alvadis
Total operating income 1 2,724.0 2,960.2 1 2,723.4 2,960.2 8.7%
Operating expenses 2,312.7 2,554.5 2,312.7 2,554.5 10.5%
EBITDA 411.3 405.7 410.7 405.7 -1.2% 2 Amortization of intangibles recognized
during PPA is adjusted, leading to
Depreciation & Amortization 184.7 199.3 169.1 185.6 9.8% increase in EBIT (€ +13.7m) and income
EBIT 226.6 2 206.4 241.6 2 220.1 -8.9% tax expense (€ +0.8m)
Margin (%) 8.3% 7.0% 8.9% 7.4%
Financial result -34.7 -29.9 -34.7 -29.9
3 Adjusted FCF excludes the cash Radial
Profit before tax 201.3 190.1 216.3 203.9 -5.8% receives on behalf of its customers for
performing billing services
Income tax expense 74.4 2 54.3 75.6 2 55.1 -27.2%
Net profit 126.9 135.9 140.7 148.8 5.7%
FCF 174.9 3 298.3 204.2 3 323.3 58.3%
Net Debt at 30 September 751.3 597.6 751.3 597.6 -20.5%
Capex 89.0 86.8 89.0 86.8 -2.4%
Average # FTEs and interims 34,254 36,941 34,254 36,941 7.8%
1 Unaudited figures
54 3Q20 Roadshow presentationResults by segment YTD20 YTD20
€ million
M&R PaLo Eurasia PaLo N. Am. Corp Eliminations Group
External operating income 1,279.6 762.1 906.7 11.8 0.0 2,960.2
Intersegment operating income 152.3 9.5 4.4 262.1 -428.2 0.0
Total operating income 1,431.8 771.5 911.1 273.9 (428.2) 2,960.2
Operating expenses 1,230.9 678.2 838.3 235.2 -428.2 2,554.5
EBITDA 200.9 93.3 72.8 38.7 405.7
Depreciation & Amortization 65.7 16.5 63.7 53.4 199.3
Reported EBIT 135.2 76.8 9.1 -14.7 206.4
Margin (%) 9.4% 10.0% 1.0% -5.4% 7.0%
Adjusted EBIT 136.9 79.0 18.8 -14.7 220.1
Margin (%) 9.6% 10.2% 2.1% -5.4% 7.4%
55 3Q20 Roadshow presentationPositive evolution of FCF1 mainly driven by payment terms YTD20
in payables and lower tax related cash flows
Reported - € million
YTD19 YTD20 Delta
+ Cash flow from operating activities 206.7 370.3 163.7
out of which CF from operating activities before ∆ in WC & provisions 299.5 366.5 67.1
+ Cash flow from investing activities -31.8 -72.0 -40.2
=
Free cash flow 174.9 298.3 123.4
+
Financing activities -151.7 -98.2 53.5
=
Net cash movement 23.1 200.0 176.9
Capex -89.0 -86.8 2.2
CF from operating activities CF from investing activities CF from financing activities
€ +67.1m variance in CF from operating activities before change in working capital and provisions Proceeds from buildings sales: € -43.6m Absence of dividend payment YTD20:
mainly thanks to € +50.0m
Capex: € +2.2m (€ 86.8m YTD20 vs €
- Higher EBITDA excluding gain on HQ (€ +14.3m when deducting non-cash gain of € +19.9 89.0m LY). Main investments in YTD20
from EBITDA €-5.6m ) partially offset by tax prepayments (€ -19.0m) include increased capacity at Radial,
- Lower tax prepayments YTD20 :€ +30.7m vs. LY Parcels B2C and Active Ants and ICT
- Tax assessments on previous years: € +21.3m YoY variance (€ +7.5m positive settlement in projects
1Q20 vs. € -13.8m in 1Q19)
Change in working capital and provisions (€ +96.6m) mainly thanks to positive impact of
extended payment terms in payables due to some temporary initiatives set up in the context of
the pandemic, which will be unwound during 1Q21, and the increased cross border activities
leading to increased terminal dues and terminal dues 1 Free cash flow = cash flow from operating activities + cash flow from investing activities
56 3Q20 Roadshow presentationYou can also read
