Investor presentation - Second quarter 2020 August - September 2020 - bpost Group
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Investor presentation
Second quarter 2020
August – September 2020
Investor presentation
Second quarter 2020
Contents Financial Calendar
Highlights & guidance 2Q20 results Results by segment – 53 03.11.2020 (17:45 CET)
Mail & Retail – 54 & 55 Quarterly results 3Q20
2Q20 Highlights – 4 EBIT bridge – 37 Parcels & Logistics Eurasia – 56 & 57
Outlook 2020 – 5 Key financials – 38 Parcels & Logistics N. America – 58 & 59
Results by segment – 39 Corporate – 60
bpost Group at a glance Mail & Retail – 40 & 41 Cash flow – 61
Investment rationale – 7 Parcels & Logistics Eurasia – 42 & 43
Dividend policy – 8 Parcels & Logistics N. America – 44 & 45
Corporate – 46
Additional Info
Overview – 9 Key financials FY19 – 63
LT vision & strategic aspirations – 10 Cash flow – 47
Results by segment FY19 – 64
Management – 11 Balance sheet – 48
Relationship with State – 65
Sustainability – 12 Financing Structure & Liquidity – 49
USO & SGEI – 66
Mail & Retail – 13-21
Parcels & Logistics Eurasia – 22-30 1H20 results European mail market – 67
Key contacts – 68
Parcels & Logistics N. America – 31-35 EBIT bridge – 51
Key financials – 52
More on corporate.bpost.be/investors
Disclaimer
This presentation is based on information published by bpost Group in its Second Quarter 2020 Interim Financial Report made available on August, 4th 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 14 November 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 2Q20 Roadshow presentation
Highlights 2Q20 Guidance 2020
Highlights of 2Q20 2Q20
Net negative impact of COVID-19, mainly in M&R, is compensated by growth in Parcels and E-commerce logistics
next to targeted cost containment actions and cost phasing towards 2H20
2Q20 COVID-
Group operating Mail & Retail Parcels & Logistics Parcels & Logistics 19 impact1 on
income Eurasia N. Am. Group EBIT
€ 1,052.7m € 36.0m € 32.4m € 17.6m estimated at
7.7% EBIT margin 11.0% EBIT margin 5.0% EBIT margin € -9.5m
• Total operating income at • Total operating income at • Total operating income at
€ 468.1m (-10.2%) driven by € 294.9m (+46.4%) driven € 353.9m (+48.0%) driven 1 All COVID-19 impacts mentioned
in this presentation are best effort
COVID-19 impact on mail by positive COVID-19 by E-commerce logistics, in estimates based on actuals and are
volumes & on retail and by development in all revenue particular growth at Radial net results of both positive and
negative impacts. Group impact
deconsolidation of Alvadis lines, especially Parcels from existing customers includes € -2.0m at Corporate.
BeNe (+64.2%) and new business signed in
• Underlying mail volume
Group adjusted decline at -17.7% driven by • Parcels BeNe organic 2019
EBIT COVID-19 lockdown with volumes +78.4% • Adjusted EBIT increase
visible catch-up in June • Adjusted EBIT, excl. YoY (€ +18.1m) driven by Initial 2020
€ 74.9m • Adjusted EBIT decline negative evolution of positive evolution of E-
Group adjusted
commerce logistics (mainly
7.1% EBIT margin (-51.9%) from mail evolution terminal dues settlements,
amplified by COVID-19. up € +13.0m (+67%) Radial), partially offset by EBIT guidance
margin pressure in
• M&R COVID-19 impact1: operationally.
International mail. range can be
€ -37.0m • PaLo EA COVID-19 impact1:
• PaLo NA COVID-19 impact1: reconfirmed
€ +13.1m
€ +16.5m
4 2Q20 Roadshow Presentation
Initial 2020 Group EBIT outlook reconfirmed Outlook FY20
Based on the current situation and facts, bpost Group reconfirms adjusted EBIT guidance for 2020
in the range of € 240-270m.
Group Dividend
Assuming no second national or important local lockdown in 2020, nor any The Board will recommend to the Annual Shareholders’ Meeting not to grant a
event deriving from COVID-19 uncertainties, the adjusted EBIT between € 240- dividend on the results of FY20 to shareholders.
270m can be reconfirmed. bpost Group remains fully committed to delivering sustainable shareholder
Contribution per Business Unit will differ from the initial outlook issued in March. returns.
Given the high level of uncertainty that still remains in light of COVID-19 and its
impact on the overall economy, bpost Group’s priority is in the current
Gross capex of € 150m maximum (vs. up to € 200m pre-COVID-19)
circumstances the strength of bpost’s balance sheet, cash reserves and capacity
to invest on the long term.
A new dividend policy going forward will be decided by the Board when the
longer term impact of the COVID-19 crisis becomes more clear.
COVID-19 disclaimer
Given ongoing limited visibility about the duration and severity of the pandemic and its different impacts across the globe, the reconfirmed outlook could still be
impacted by these uncertainties or any event deriving thereof.
5 2Q20 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 2Q20 Roadshow presentationWe create value for shareholders at a glance – Group
Capital allocation and dividend policy are under review
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 2Q20 Roadshow presentationA 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 2Q20 Roadshow presentationLong-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 2Q20 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 2Q20 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 2Q20 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
13 2Q20 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 agreement
compensation contractually set
on 7th 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
14 2Q20 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 1H20
Key drivers
Underlying change -4.2% -4.4% -5.0% -5.0%
in domestic mail volume -5.8% -5.8%
-7.9% • E-substitution at large
-13.9% corporates and SMEs
Transactional mail -3.7%
-5.0% -5.3% -5.7%
• Intensifying competition in
-5.9%
-8.1% -9.2% advertising media
-12.8%
1.5% • Shift to digital for newspapers
-3.0% -3.0%
& magazines
-4.9% -4.7%
Advertising mail -9.1% -7.2%
• Service level elasticity
-22.3% from the implementation of the
Alternating Distribution Model
Press -3.0% -2.8% -2.8% -2.8%
-3.7% -3.8%
-6.5% -6.6%
1 As of start FY19 Transactional Mail excludes outbound and Press includes Ubiway press distribution
15 2Q20 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
retail network, cash at counter, cash payment of sharing factor)
• Cover full territory of Belgium for collection and
pensions at home
delivery of items belonging to universal service • Volume and operational discounts allowed for
• 2 press concessions (2016-2020 extended for 2 other USO products (bulk)
• Apply uniform tariffs and an identical service
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: +4.4% on average in 2019 on all domestic
newspapers mail items; +5.1% on average for 2020
1 Refer to slide 66 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
16 2Q20 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%
17 2Q20 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
18 2Q20 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)
19 2Q20 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 a given 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
21 2Q20 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 11
E-commerce logistics 133 locations
• Activities include Radial EU, Active
Ants and DynaFix
covers 11 locations across 6
• International mail & parcels 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
22 2Q20 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
23 2Q20 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
24 2Q20 Roadshow presentationWe have an established position in at a glance – PaLo Eurasia
the Belgian B2C/C2C parcels market
2019e 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 2018-20e1, % • >250 parcel lockers in Belgium
~12% (2 new parcel lockers every week in 2020)
• Click & Collect
0-4% • Non-exclusive partnerships with DPDHL for B2C parcel delivery into
Belgium (from Germany/France & Benelux)
B2C / C2X B2B
1 Source: Effigy
25 2Q20 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
26 2Q20 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
27 2Q20 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
28 2Q20 Roadshow presentationE-commerce logistics activities in Europe can be at a glance – PaLo Eurasia
developed thanks to an already strong European footprint
11 ~1,500
fulfilment centers / Employees
facilities
The
UK Netherlands
Germany
Poland
Belgium
Italy 6 ~€ 133m
Countries 2019 revenue
Cold chain facility Fulfilment sites Personalized logistics
29 2Q20 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
30 2Q20 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
31 2Q20 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 $ 224m end-1H20
• 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)
• 24 fulfilment centers (mainly US)
Knowledge and experience
• Knowledge and experience of the e-commerce logistics chain increase
exponentially with the acquisition of an experienced player
32 2Q20 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 & 24 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
33 2Q20 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
34 2Q20 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.
• Positive TCV development continued through 1H20 with $ 224m
contract value signed. Significant growth at existing clients and 2019
new business in 1H20 (partly COVID-19 driven)
• 1H20 adjusted EBIT above break-even at € 10.1m
35 2Q20 Roadshow presentation2Q20 Results
Net negative COVID-19 impact, mainly in M&R, is compensated by growth in 2Q20
PaLo’s next to targeted cost containment actions and cost phasing towards 2H20
€ million 107.5
5.7
-32.6
-38.8
18.1 -20.7
74.9
8.8 4.7
€ -0.8 excluding
101.8 2Q19 € 19.9m gain on HQ
disposal
70.2
Adjusted1
Reported
EBIT Mail & PaLo PaLo Corporate EBIT
2Q19 Retail Eurasia N. America 2Q20
1Adjusted 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.
37 2Q20 Roadshow PresentationKey financials 2Q20 2Q20
€ million Reported Adjusted1 1 Amortization of intangibles recognized
2Q19 2Q20 2Q19 2Q20 %↑ during PPA is adjusted, leading to
increase in EBIT (€ +4.7m) and income
Total operating income 935.7 1,052.7 935.7 1,052.7 12.5% tax expense (€ +0.3m)
Operating expenses 773.9 917.0 773.9 917.0 18.5%
EBITDA 161.7 135.7 161.7 135.7 -16.1% 2 Adjusted FCF excludes the cash Radial
receives on behalf of its customers for
Depreciation & Amortization 59.9 65.5 54.2 60.8 12.2%
performing billing services
EBIT 101.8 1 70.2 107.5 1 74.9 -30.3%
Margin (%) 10.9% 6.7% 11.5% 7.1%
Financial result -14.8 -14.0 -14.8 -14.0
Profit before tax 92.7 59.5 98.4 64.2 -34.8%
Income tax expense 29.3 1 15.9 29.8 1 16.1
Net profit 63.4 43.6 68.6 48.0 -30.0%
FCF 4.5 2 113.2 18.5 2 44.1 -
Net Debt at 30 June 692.5 539.5 692.5 539.5 -22.1%
Capex 25.8 24.9 25.8 24.9 -3.5%
Average # FTEs and interims 33,819 37,853 33,819 37,853 11.9%
38 2Q20 Roadshow PresentationResults by segment 2Q20 2Q20
€ million
M&R PaLo Eurasia PaLo N. Am. Corp Eliminations Group
External operating income 407.5 292.1 351.9 1.3 0.0 1,052.7
Intersegment operating income 60.7 2.8 2.0 85.4 -150.9 0.0
Total operating income 468.1 294.9 353.9 86.7 (150.9) 1,052.7
Operating expenses 411.2 257.8 318.2 80.6 -150.9 917.0
EBITDA 56.9 37.1 35.7 6.0 135.7
Depreciation & Amortization 21.5 5.5 21.5 17.0 65.5
Reported EBIT 35.4 31.6 14.2 -11.0 70.2
Margin (%) 7.6% 10.7% 4.0% -12.7% 6.7%
Adjusted EBIT 36.0 32.4 17.6 -11.0 74.9
Margin (%) 7.7% 11.0% 5.0% -12.7% 7.1%
39 2Q20 Roadshow PresentationTop-line decrease driven by COVID-19 impacts on mail and 2Q20 – M&R
on retail and by deconsolidation of Alvadis
M&R external
operating income, € million Domestic Mail Transactional Proximity and convenience
Operating income decline at € -40.9m i.e. Overall good resistance of volumes with retail network
2Q19 479.4 € +0.4m working days impact, € -3.7m underlying decline at -16.7% of which:
elections 2Q19, € -51.0m volume (-17.7% Decrease mainly driven by:
-19.0% QTD May-20: all product ‐ the deconsolidation of Alvadis
underlying volume decline, i.e. -22.3%
categories negatively impacted by COVID- (€ -7.8m) as of September 2019
1 Transactional -16.7 QTD May-20, -6.6% Jun-20), and
19 lockdown.
€ +13.5m price/mix. ‐ Ubiway retail revenues impacted by
-8.9% Jun-20 driven by an overall catch- partial COVID-19 related closure of
up in volumes post COVID-19 lockdown, the network and reduced footfall
2 Advertising -22.7 particularly visible in smaller administrative ‐ Decline in banking & finance
mail volumes and registered letters. revenues from less traffic in post
1 2 3 1 4
offices and less ATM transactions
3 Press -1.5
Proximity and Advertising Press Value added services
4 convenience -27.8
retail network -26.6% underlying volume decline: -8.0% underlying volume decline driven by Mainly lower revenues from phasing out of
e-substitution and rationalization. e-ID activities, document management
-37.0% QTD May-20 driven by COVID-19
Value added and European license plates.
5 -3.2 lockdown of all non-essential retail until
services May 10 included. Gradual recovery in food
retail advertising as of second half of April
and certain other sectors as of May.
2Q20 407.5
-4.2% Jun-20: strong volume recovery
-71.9 in certain sectors due to a catch up. 2 3 5
40 2Q20 Roadshow PresentationM&R EBIT impacted by mail evolution 2Q20 – M&R
amplified by COVID-19
€ million
Mail & Retail
External operating income
2Q19
479.4
2Q20
407.5
%↑
-15.0%
Key takeaways 2Q20
Transactional 187.4 170.7 -8.9% • Total operating income decline of € -53.2m primarily driven by
Advertising 60.2 37.5 -37.7% domestic mail volume decline, Ubiway retail decline and the
Press 87.2 85.8 -1.7% deconsolidation of Alvadis. Until end of May, mail volumes were
Proximity and convenience retail network 117.5 89.7 -23.7% significantly impacted by COVID-19 with a visible catch-up as of June,
Value added services 27.1 23.9 -11.8% partly compensated by higher intersegment operating income related
Intersegment operating income 42.0 60.7 44.5%
to higher parcels volumes.
Total operating income 521.4 468.1 -10.2%
Operating expenses 426.8 411.2 -3.6%
• Operating expenses (incl. adjusted D&A) declined by € +14.4m:
‐ Higher payroll & interim costs driven by (1) headcount from higher
EBITDA 94.6 56.9 -39.8%
Depreciation & Amortization 20.9 21.5 2.7%
parcel volumes & absenteeism and (2) price from COVID-19
premium & salary indexation; together with specific COVID-19 opex
Reported EBIT 73.7 35.4 -51.9%
Margin (%) 14.1% 7.6%
‐ Fully compensated by lower material costs from Ubiway Retail incl.
Adjusted EBIT 74.8 36.0
Alvadis deconsolidation impact, higher recoverable VAT, cost
-51.9%
Margin (%) 14.4% 7.7%
containment actions and cost phasing towards 2H20 (e.g. holidays).
Average # FTEs and interims 22,052 23,004 4.3% • COVID-19 impacted EBIT by an estimated € -37.0m, explained by the
top-line development on domestic mail and retail as well as
Additional KPIs
additional costs like the COVID-19 premium, health & safety
Underlying Mail volume decline -9.4% -17.7%
Transactional -11.1% -16.7%
measures, increase in absenteeism and additional bad debt risk.
Advertising -5.6% -26.6% • M&R adjusted EBIT declined by € -38.8m to € 36.0m.
Press -6.7% -8.0%
41 2Q20 Roadshow PresentationFavourable COVID-19 revenue development 2Q20 – PaLo Eurasia
across the board in PaLo Eurasia
PaLo Eurasia external
operating income, € million
Parcels BeNe E-commerce logistics Cross-border
Parcels BeNe volume growth of Revenue growth mainly driven by Net favourable revenue impact
2Q19 196.5
+78.4%1 driven by thriving online positive COVID-19 impact from COVID-19 (€ +15.4m) driven
sales during COVID-19 lockdown (€ +11.3m) at Radial Europe, Active by:
(QTD May-20 volumes up +80.6%, Ants & DynaFresh. ‐ a gradual ramp-up in Asian
Jun-20 +74.3%). parcel volumes since May,
1 Parcels BeNe 58.4 Further revenue growth driven by
COVID-19 revenue impact is the integration of MCS Fulfilment evolving exponentially through
June, resulting from rail solution
estimated at € +44.2m. (part of Active Ants) as from
as an alternative to air freight
October 1, 2019, contributing
‐ partly offset by COVID-19 linked
E-commerce € 2.9m.
2
logistics
17.0 revenues losses on other
international parcels volumes
and lower in- and outbound mail
volumes
3 Cross-border 20.2
Excluding COVID-19, growth in
1 Parcels volume growth is composed of former
commercial business with Asia as
Domestic Parcels (i.e. pre new segment reporting since main driver.
2019) and Dynalogic volumes. This does not cover the
2Q20 292.1
full scope of Parcels BeNe since not all revenues Unfavourable YoY evolution of
included in Parcels BeNe can be expressed in volumes.
terminal dues settlements (€ -2.2m).
+95.6 1 2 3
42 2Q20 Roadshow PresentationStrong EBIT development from positive COVID-19 2Q20 – PaLo Eurasia
volume impacts across all business lines
€ million
Parcels & Logistics Europe and Asia
External operating income
2Q19
196.5
2Q20
292.1
%↑
48.7%
Key takeaways 2Q20
Parcels BeNe 91.0 149.4 64.2% • Total operating income € +93.5m (+46.4%) driven by positive
E-commerce logistics 29.4 46.3 57.8% development in all revenue lines, especially Parcels BeNe
Cross-border 76.1 96.3 26.5% (€ +58.4m, +64.2%). Total positive COVID-19 revenue impact stood
Intersegment operating income 4.9 2.8 -42.2% at € +70.9m. Excluding COVID-19 and the unfavourable YoY
Total operating income 201.4 294.9 46.4% evolution of terminal dues (€ -2.2m), revenues were up € +24.8m.
Operating expenses 173.6 257.8 48.5%
• Excluding the unfavourable YoY evolution of terminal dues
EBITDA 27.9 37.1 33.2% settlements (€ -2.0m), operating expenses (incl. adjusted D&A) were
Depreciation & Amortization 5.5 5.5 -0.2%
up € -82.7m (+46.0%), mainly explained by higher volume-linked
Reported EBIT 22.3 31.6 41.5% variable costs translating into increased payroll, interim and transport
Margin (%) 11.1% 10.7%
costs across all business lines. Specific COVID-19 opex also
Adjusted EBIT 23.6 32.4 37.2% contributed to the YoY cost increase and includes the premium,
Margin (%) 11.7% 11.0%
increase in absenteeism, health and safety measures and additional
Average # FTEs and interims 3,153 3,845 21.9% bad debt provisions.
Additional KPIs • COVID-19 had an estimated EBIT impact of € +13.1m from COVID-19
Parcels volume growth 17.7% 78.4% driven revenue increase in all business lines partly offset by the
aforementioned specific COVID-19 additional opex.
• Adjusted EBIT increased by € +8.8m (+37.2%) to € 32.4m. Excluding
the YoY terminal dues settlements (€ -4.2m), adjusted EBIT was up
€ +13.0m (+67%) operationally.
43 2Q20 Roadshow PresentationParcels & Logistics North America driven by significant 2Q20 – PaLo N. Am.
growth at existing clients and by 2019 new business
PaLo North America external
operating income, € million
E-commerce logistics International mail
YoY increase of +53.5% (+50.7% at Declining revenues at The Mail
2Q19 238.0 constant exchange rate). Group1 (-6.5%) despite positive FX
Revenue increase mainly driven by evolution (-8.5% at constant
Radial NA recording significant exchange rate).
growth of existing customers Significant drop-off in business mail
(+49%), as well as customers segment as a result of COVID-19.
E-commerce
1 115.4 launched in 2019 slightly offset by
logistics COVID-19 revenue impact is
customer churn. Landmark also
recorded higher sales from new estimated at € -2.0m with the main
and existing customers. negative impact seen in April 2020
and improving month by month
COVID-19 related closures of
International thereafter.
2 -1.4 customers’ brick and mortar stores
mail
increased volume through E-
commerce logistics. Total revenue
impact is estimated at € +92.0m.
2Q20 351.9
1 2
1 Combination IMEX, Mail Inc & MSI
+113.9
44 2Q20 Roadshow PresentationStrongly positive EBIT evolution driven by e-commerce 2Q20 – PaLo N. Am.
Logistics, especially Radial
€ million
Parcels & Logistics North America
External operating income
2Q19
238.0
2Q20
351.9
%↑
47.9%
Key takeaways 2Q20
E-commerce logistics 215.6 331.0 53.5% • Total operating income increase of € +114.8m or +48.0% (+45.3% at
International mail 22.3 20.9 -6.5% constant exchange rate) mainly driven by growth at Radial from
Intersegment operating income 1.1 2.0 85.4% existing customers and customers launched in 2019. Total net
Total operating income 239.0 353.9 48.0% COVID-19 revenue impact for North America is estimated at
Operating expenses 226.5 318.2 40.5% € +90.0m
EBITDA 12.6 35.7 184.4% • Operating expenses (incl. adjusted D&A) increased by € -96.7m
Depreciation & Amortization 16.4 21.5 31.4% (€ -92.3m excl. FX) driven by higher variable costs from volume
Reported EBIT -3.8 14.2 growth (primarily at Radial) and bad debt impact, as well as higher
Margin (%) -1.6% 4.0%
payroll costs, increased D&A related to the 3 new fulfilment centers,
Adjusted EBIT -0.5 17.6 and COVID-19 additional expenses. International Mail was impacted
Margin (%) -0.2% 5.0%
by YoY increase in transport costs.
Average # FTEs and interims 6,986 9,399 34.5%
• COVID-19 impacted EBIT by an estimated € +16.5m, mainly related
Additional KPIs, adjusted to additional e-commerce logistics volumes, partly offset by
Radial North America revenue, $m 199.2 317.3 59.3% additional health and safety measures, increased transport costs
Radial North America EBITDA, $m 7.3 30.8 relating to International Mail and bad debt.
Radial North America EBIT, $m -4.9 13.6
• Adjusted EBIT up € +18.1m to € 17.6m driven by positive operating
leverage in E-commerce logistics, in particular at Radial. This was
partly offset by continuing margin pressure in International mail.
45 2Q20 Roadshow PresentationCorporate EBIT decline driven by headquarters profit on 2Q20 – Corporate
disposal in 2Q19
€ million
Corporate
External operating income
2Q19
21.8
2Q20
1.3
%↑
-94.3%
Key takeaways 2Q20
Intersegment operating income 93.0 85.4 -8.2% • External revenues down by € -20.5m driven by lower building
Total operating income 114.8 86.7 -24.5% sales (gain on headquarter sale of € 19.9m in 2Q19) and slightly
Operating expenses 88.1 80.6 -8.5% lower rental income.
EBITDA 26.7 6.0 -77.5%
Depreciation & Amortization 17.1 17.0 -0.3% • Operating expenses (incl. D&A) decreased by € +7.6m driven by
Reported EBIT 9.6 -11.0 lower demand for services from the operational Business Units
Margin (%) 8.4% -12.7% (€ -7.6m intersegment operating income) namely due to lower
Adjusted EBIT 9.6 -11.0 demand for IT-related projects. Net of the intersegment operating
Margin (%) 8.4% -12.7% income, the opex (incl. D&A) was flat as YoY negative VAT
Average # FTEs and interims 1,629 1,605 -1.5% recovery impact (€ -1.7m) and COVID-19 related costs were offset
by lower project costs at corporate level, i.e. cost containment.
• COVID-19 impacted EBIT by an estimated € -2.0m, mainly related
to additional costs for health and safety measures.
• As a result, adjusted EBIT decreased by € -20.7m YoY.
46 2Q20 Roadshow PresentationIncreased FCF1 thanks to payment terms in payables 2Q20
No bpost NV / SA tax prepayment in current quarter compensates LY’s proceeds from HQ building sale
Reported ‐ € million
2Q19 2Q20 Delta
+ Cash flow from operating activities -27.3 138.3 165.6
+ Cash flow from investing activities 31.8 -25.1 -56.9
= Free cash flow 4.5 113.2 108.7
+ Financing activities -60.8 -24.4 36.4
= Net cash movement -56.3 88.8 145.1
Capex (25.8) (24.9) 0.9
CF from operating activities CF from investing activities CF from financing activities
More cash flows relating to collected proceeds due to Radial’s clients: € +83.1m, high level of Proceeds from buildings sales: € -57.1m Absence of dividend payment in 2Q20 (vs.
merchandise sales in COVID-19 period (Sale of HQ building Centre Monnaie in € 50.0m in 2Q19)
2Q19)
Absence of tax prepayment in 2Q20 (vs. € 51.0m in 2Q19) Commercial papers issuance: € -12.1m
Capex at € 24.9m decreased by € +0.9m
Excluding the above, CF from operating activities: € +31.5m, of which:
vs 2Q19 and was mainly spent on
‐ € +30.3m improvement in working capital evolution: primarily driven by extended increased capacity (Radial, Parcels B2C and
payment terms during COVID-19 period partly offset by higher receivables due to Active Ants mainly)
increased sales
1 Free cash flow = cash flow from operating activities + cash flow from investing activities
47 2Q20 Roadshow PresentationBalance Sheet 2Q20
€ million € million
Assets Dec 31, 2019 Jun 30, 2020 Equity and Liabilities Dec 31, 2019 Jun 30, 2020
PPE 1,133.6 1,105.1 Total equity 682.6 749.5
Intangible assets 898.3 890.4 Interest-bearing loans & borrowings (incl. bank overdrafts) 1,449.9 1,464.8
Investments in associates and joint ventures 239.5 235.6 Employee benefits 320.6 315.3
Other assets 41.8 39.2 Trade & other payables 1,278.5 1,261.4
Trade & other receivables 759.0 638.6 Provisions 29.8 28.3
Inventories 34.7 36.1 Derivative instruments 1.3 0.4
Cash & cash equivalents 670.2 925.4 Other liabilities 14.3 50.6
Total Assets 3,777.1 3,870.2 Total Equity and Liabilities 3,777.1 3,870.2
Main balance sheet movements
PPE decreased due to the depreciation (€ 108.6m) and the transfer to assets held for sale (€ 7.8m), partially offset by capex (€ 31.5m) and right of use assets recognized (€ 54.7m).
Trade & other receivables decreased due to the usual settlement of the SGEI receivable during the first quarter of the year.
Total equity increased in line with the realized profit (€ 91.5m), partially offset by the fair value adjustment of bpost bank’s bond portfolio (€ 11.9m) 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 (€ 14.7m).
Interest-bearing loans & borrowings recorded an increase mainly linked to the increase of the lease liabilities for IFRS 16.
Other liabilities increased due the income tax payable, as no prepayments were done in 2020 yet.
48 2Q20 Roadshow PresentationFinancing Structure & Liquidity 2Q20
€ million € million
Available Liquidity Dec 31, 2019 Jun 30, 2020 External Funding Dec 31, 2019 Jun 30, 2020
Cash & cash equivalents 670.2 925.4 L o ng -ter m
Cash in network 163.6 130.9 Long-term bond1 (1.25% - 07/2026) 650.0 650.0
Transit accounts 105.8 90.4 Bank loans 183.2 183.4
Cash payment transactions under execution -26.7 -14.5 Amortizing Loan (€ 100m) ‐ 12/2022 18.2 18.2
Bank current accounts 377.4 658.5 Term Loan ($ 185m) - 07/2023 165.0 165.2
Short-term deposits 50.0 60.0
Undrawn revolving credit facilities 375.0 375.0 Sho r 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 164.5 168.1
Total Available Liquidity 1,045.2 1,300.4 Total External Funding 1,006.8 1,010.6
Liquidity: Cash & Committed credit lines External Funding & Debt Amortization (excl. IFRS16 lease liabilities)
Total available liquidity at June 30, 2020 consisted out of € 925.4m cash & cash equivalents of Out of € 1,010.6m external funding on balance sheet at June 30, 2020:
which € 718.5m is readily available on bank current accounts and as short-term deposits. ‐ € 168.1m commercial paper outstanding with maturity ranging between 1 to 6 months. In
In addition, bpost Group has 2 undrawn revolving credit facilities for a total amount of July, bpost Group seized the opportunity of favorable market conditions to issue € 100m
€ 375.0m. of commercial paper with a maturity of 7 months (until Jan-21) and thus secured a major
part of the short-term funding until the collection of the SGEI payment in January 2021.
‐ € 9.1m during 4Q20 (i.e. the current portion of the EIB loan).
1 € 650m long-term bond with a carrying amount of € 643.1m, the difference being the re-offer price and issuance fees.
49 2Q20 Roadshow Presentation1H20 Results
1H20 EBIT impacted by significant COVID-19 related mail volume 1H20
decline, partly compensated by strong PaLo performance
€ million 203.3
11.1
-52.7
-66.2
-12.6 150.6
18.4
9.3
7.7
192.2 € +7.3 excluding
2Q19 € 19.9m gain on HQ
disposal 141.3
Adjusted1
Reported
EBIT Mail & PaLo PaLo Corporate EBIT
1H19 Retail Eurasia N. America 1H20
1Adjusted 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.
51 2Q20 Roadshow presentationKey financials 1H20 1H20
1H20 COVID-19 impact on Group EBIT estimated at € -26.2m
€ million Reported Adjusted1 1 Amortization of intangibles recognized
1H19 1H20 1H19 1H20 %↑ during PPA is adjusted, leading to
increase in EBIT (€ +9.3m) and income
Total operating income 1,842.5 1,987.3 1,842.5 1,987.3 7.9% tax expense (€ +0.5m)
Operating expenses 1,529.7 1,714.4 1,529.7 1,714.4 12.1%
EBITDA 312.8 272.9 312.8 272.9 -12.8% 2 Adjusted FCF excludes the cash Radial
receives on behalf of its customers for
Depreciation & Amortization 120.6 131.6 109.5 122.3 11.7%
performing billing services
EBIT 192.2 1 141.3 203.3 1 150.6 -25.9%
Margin (%) 10.4% 7.1% 11.0% 7.6%
Financial result -22.3 -18.4 -22.3 -18.4
Profit before tax 174.2 131.0 185.2 140.2 -24.3%
Income tax expense 60.6 1 39.5 61.6 1 40.0
Net profit 113.5 91.5 123.7 100.3 -18.9%
FCF 190.6 2 307.4 213.9 2 290.3 35.7%
Net Debt at 30 June 692.5 539.5 692.5 539.5 -22.1%
Capex 41.5 45.4 41.5 45.4 9.5%
Average # FTEs and interims 33,901 36,274 33,901 36,274 7.0%
1 Unaudited figures
52 2Q20 Roadshow presentationResults by segment 1H20 1H20
€ million
M&R PaLo Eurasia PaLo N. Am. Corp Eliminations Group
External operating income 865.2 502.5 611.8 7.6 0.0 1,987.3
Intersegment operating income 102.9 5.9 3.3 175.9 -287.9 0.0
Total operating income 968.1 508.4 615.2 183.5 (287.9) 1,987.3
Operating expenses 825.1 450.0 569.1 158.2 -287.9 1,714.4
EBITDA 143.0 58.4 46.1 25.3 272.9
Depreciation & Amortization 43.0 10.6 42.7 35.3 131.6
Reported EBIT 100.0 47.8 3.5 -10.0 141.3
Margin (%) 10.3% 9.4% 0.6% -5.4% 7.1%
Adjusted EBIT 101.2 49.3 10.1 -10.0 150.6
Margin (%) 10.5% 9.7% 1.6% -5.4% 7.6%
53 2Q20 Roadshow presentationTop-line decrease driven by COVID-19 impacts on Domestic 1H20 – M&R
Mail and on retail and by deconsolidation of Alvadis
M&R external
operating income, € million Domestic Mail Transactional Proximity and convenience
Operating income decline at € -58.5m i.e. -12.8% underlying volume decline of retail network
1H19 965.9 € +1.4m working days impact, € -3.7m which:
elections 2Q19, € -80.1m volume (-13.9% Decrease mainly driven by:
-16.7% March to May-20: COVID-19 ‐ the deconsolidation of Alvadis
underlying volume decline, with March to
lockdown negatively impacted all mail (€ -15.3m) as of September 2019
1 Transactional -18.9 May-20 at -20.1% due to COVID-19), and
categories, in particular smaller
€ +24.0m price/mix. ‐ COVID-19 impact on Ubiway retail
administrative mail volume and registered
letters. revenues from partial closure of the
network and reduced footfall
2 Advertising -35.8 Excluding COVID-19, underlying mail ‐ Decline in banking & finance
volumes are subject to ongoing revenues
1 2 3 e-substitution and digitization. 1 4
3 Press -3.8
Proximity and Advertising Press Value added services
4 convenience -41.0
retail network -22.3% underlying volume decline of -6.6% underlying volume decline driven by Lower revenues from phasing out of e-ID
which: e-substitution and rationalization. activities, European license plates and
Value added document management partly
5 -1.0 -36.2% March to May-20 mainly impacted
services compensated by higher revenue from fines
by cancelled campaigns from COVID-19
management.
lockdown of all non-essential retail from
March 18 through May 10 and ban on
1H20 865.2 promotions through April 3.
-100.6 2 3 5
54 2Q20 Roadshow presentationYou can also read
