General Meeting of Shareholders 2020 13 May 2020
Jean-Paul Van Avermaet CEO 4 Q 2 9 A n a y P e e n a
2019, an eventful year FY19 events ber ember ptembe nuary ust rch ugus June une Janua Marc ecem Aug Septe Dec bpost Group Belgian Federal Sale of Centre Approval of Radial opens bpost Group participates in Council of Monnaie / terms & a new completes the the 1 st Green Ministers Munt conditions fulfilment sale of Alvadis Postal Day decided to Centrum applicable to center in to Conway extend the press building bpost for the Indiana. Later concessions for 2 delivery of the in the year, years universal another one service until was opened December 31, in California 2023 and a third Sale of one in CityDepot to BD Pennsylvania MyShopi 3 General Meeting of Shareholders - 13 | 05 | 2020
We are satisfied with our achievements in 2019 • Acceleration of the deployment of our alternating distribution model live since March 2020 • Positive results from our sales & marketing efforts in Advertising Mail • Extension of the press concessions • Commitments from CLA respected • Strong parcels organic growth • Radial commercial development on the right track • Investments in the future of the company have been realized 4 General Meeting of Shareholders - 13 | 05 | 2020
Mail & Retail € 1.9 € 1 .9bn r n rev even enues ues 2019 (49% of total) • Transactional mail • Advertising mail • Press • Proximity and convenience retail network • Value added services 4 Q 5 9 A n a y P e e n a
Key value drivers for Mail & Retail M&R Key value drivers From T o -7.9% Between 9% - 11% Speed of mail volume decline in 2019 in 2020 (ex-COVID-19) Share of mail volume decline compensated 18-45% >50% through price increase over 2014-2017 58% in 2019 Three contracts Renegotiation/retendering of Extension until end 2020; Management contract and press concessions of 2 press concessions until end 2022 compensation contractually set Fixed D+1 Flexible, Evolution of operating model based model differentiated offering (mail collect and distribution) (everywhere, everyday) (prior vs. non-prior.) 6 General Meeting of Shareholders - 13 | 05 | 2020
Mail volume decline is accelerating… M&R -4.4% 4% -5. 5.0% 0% -5. 5.0% 0% -5. 5.8% 8% -5. 5.8% 8% -7. 7.9% 2013 2014 2015 2016 2017 2018 2019 7 General Meeting of Shareholders - 13 | 05 | 2020
…while still representing a significant part of revenues M&R 2019 Group revenues: € 3,838m Domestic mail -7.9% mail volume decline 35% of 2019 35% Domestic Mail Group revenues +4.4% price increase Rest of Mail & Retail 15% PaLo Eurasia 21% Belgian State has extended the press concessions (newspapers and periodicals) for a period of 2 years until end-2022 at the conditions prevailing for 2020. PaLo North America 29% This decision is being notified to the European Commission. Corporate 1% 2019 8 General Meeting of Shareholders - 13 | 05 | 2020
This highlights the importance of the alternating M&R distribution model introduced in March 2020 From Monday to Monday PRIOR Drop Thursday, each existing density on round is split into two: PRIOR NON regular – Half of the round is Tuesday PRIOR rounds a Regular Round (Prior and non- Prior) Wednesday PRIOR – Other half is Point to Point round with PRIOR NON Prior only Duration Thursday PRIOR of Point to Point On Friday, there are only rounds Friday PRIOR Point to Point rounds for Prior 9 General Meeting of Shareholders - 13 | 05 | 2020
PaLo € 0.8b € 0.8bn rev evenues 2 enues 2019 (21% of total) Eurasia • Parcels BeNe • E-Commerce logistics • Cross-border 4 Q 10 10 9 A n a y P e e n a
Key value drivers for Parcels & Logistics PaLo Eurasia Europe & Asia Sub-segments Key value drivers From T o Parcels BeNe Double-digit volume growth rate, Capture profitable growth Volume growth rate of 20-30% with address price/mix (last-mile) price/mix effect up to -6% over 2016-2018 BeNe-wide offering BeNe-wide approach Focus on Belgium (sales force, contracts, DHL partnership) Flexible parcels distribution Parcel hubs where enough density Optimized last-mile operations footprint in close collaboration with Mail & Retail e-Commerce Increase scale & skills by leveraging e-Commerce logistics in 6 Organically capture market growth capabilities of Radial US and Active logistics countries in Europe Ants International cross-border parcels, also across Cross-border Developing international parcel continents flows driven by growing Natural business evolution e-commerce activity Maintain international mail volume 11 11 General Meeting of Shareholders - 13 | 05 | 2020
Parcels in Belgium & The Netherlands continue PaLo Eurasia to grow at a rapid pace +20. 20.0% +23. 23.3% Peak days of up to 480k parcels in +28. 28.2% December +17 +17.1% +12. 2.6% 6% +7. 7.0% 2013 2014 2015 2016 2017 2018 2019 12 12 General Meeting of Shareholders - 13 | 05 | 2020
e-Commerce Logistics activities in Europe can be PaLo Eurasia developed thanks to an already strong European footprint 11 ~1,100 fulfilment centers / Employees The facilities Netherlands UK Germany Poland Belgium 6 ~€ 133m Italy Countries 2019 revenue Cold chain facility Fulfilment sites Personalized logistics 13 13 General Meeting of Shareholders - 13 | 05 | 2020
e-Commerce development has 2 pillars: PaLo Eurasia Radial Europe and Active Ants 1 Medium / large clients Small / medium clients High level of customization High level of automation Leveraging knowledge Leveraging NL success and story in other European experience from Radial US countries 1 Including Landmark Global and Belgium fulfilment 14 14 General Meeting of Shareholders - 13 | 05 | 2020
PaLo N. America € 1. 1.1b 1bn rev even enues ues 2 2019 (29% of total) • E-Commerce logistics • International Mail 4 Q 15 15 9 A n a y P e e n a
Parcels & Logistics North America: e-commerce logistics PaLo North America and International Mail Objective US e-commerce logistics provider fulfilling 72m parcels p.a. with proven client base, IT infrastructure • Growth engine for bpost and capabilities along the E2E value chain Group, to be a leading e-commerce logistics player in US Capabilities to support mid-sized e-tailers to expand • Grow with cross-border commerce cross-border and last-mile distribution beyond the US • International mail providers delivering profit through infrastructure International mail solutions and catalogue fulfilment optimization through US companies 16 16 General Meeting of Shareholders - 13 | 05 | 2020
Radial’s new commercial 22 22 PaLo North America approach starts bearing fruits new customers $ 385m $ 385m T otal contract value 2016 2017 2018 2019 3 new fulfilment centers 53 millio llion parcels shipped during peak period 17 17
bpost cares… CSR People Proximity Planet we care about our we are close to the we strive to reduce employees and society our impact on the engage them environment • Most safety measures • Donations • Green distribution improved vs. 2018 • Improvement in center in Mons • Further development procurement practices • Solar panels at of our own training • 82% customer Antwerp sorting center academy satisfaction • Innovative last-mile • Start of project delivery solutions (e.g. Diversity & Inclusion electric bike trailer) General Meeting of Shareholders - 13 | 05 | 2020
bpost cares… CSR bpost external ratings Ambitious CO 2 reduction targets IPC EMMS Scorecard 2019: Reconfirmed as constituent of -40% since 2007 #3 the Ethibel Sustainability index (ESI) Governance score: 5 Gold rating T arget -20% by 2030 Environment score: 1 Social score: 3 T arget 50% Score B (peer average C) 91% (sector average: 71%) electric vehicles by 2030 Score 17.7% (low risk) Score A General Meeting of Shareholders - 13 | 05 | 2020
Proud to lead bpost into a new era! 20 20 20 20 2
Leen Geirnaerdt CFO 4 Q 21 21 9 A n a y P e e n a
Highlights of FY19 FY19 Results in line with guidance T opic Results Last outlook for 2019 Group adjusted € 310.8m Adjusted EBIT EBIT above € 300m 8.1% EBIT margin € 257.4m Adjusted EBIT margin Mail & Retail between 11-13% 12.4% EBIT margin Parcels & € 65.8m Adjusted EBIT margin towards BoD proposes to Logistics Eurasia the high end of the 6-8% range 7.9% EBIT margin cancel the May 2020 final Parcels & € -3.0m dividend Adjusted EBIT slightly below payment due to Logistics N. Am. break-even -0.3% EBIT margin COVID-19 to prioritize the Capex € 162.3m strength of € 150m - € 185m bpost’s balance sheet and cash € 0.62 gross per share reserves for the At least 85% of 2019 BGAAP Dividend long-term net profit of bpost SA/NV (72% pay-out ratio) 22 22 General Meeting of Shareholders - 13 | 05 | 2020
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