I nvestor presentation Fourth quarter 2 0 1 7 March 2 0 1 8 I - PowerPoint PPT Presentation

I nvestor presentation Fourth quarter 2 0 1 7 March 2 0 1 8

I nvestor presentation fourth quarter 2 0 1 7 Contents Financial Calendar bpost at a glance Relationship with State – 33 More on corporate.bpost.be/ investors Management – 34 Highlights 4Q17 – 4 0 2 .0 5 .2 0 1 8 Outlook 2018 – 5 More detail on 4 Q1 7 Overview – 6 ( 1 7 :4 5 CET) EBITDA bridge – 36 Products – 7 Quarterly results 1Q18 Key financials – 37 Strategy – 8 Revenues – 38 Domestic Mail: volume & revenue – 9 0 9 .0 5 .2 0 1 8 Domestic Mail – 39 Domestic Mail: regulation – 10 Parcels – 40 Ordinary General Meeting Domestic Parcels – 11 Additional sources of revenues – 41 of Shareholders International Parcels – 12 & 13 Costs – 42 Additional sources of revenues – 14 Cash flow – 43 1 7 .0 5 .2 0 1 8 M&A strategy – 15 Radial – 16-20 Additional I nfo Payment date of the dividend DynaGroup – 21 EBITDA bridge FY17 – 45 Ubiway – 22 0 8 .0 8 .2 0 1 8 Revenues FY17 – 46 Transformation – 23 Domestic Mail FY17 – 47 ( 1 7 :4 5 CET) Vision 2020 – 24 & 25 Parcels FY17 – 48 Quarterly results 2Q18 Productivity – 26 Additional sources of revenues FY17 – 49 Hybrid network – 27 Costs FY17 – 50 Stakeholders – 28 Cash flow FY17 – 51 CSR strategy – 29 European mail market – 52 Dividend policy – 30 Key contacts – 53 Summary of key financials FY17 – 31 Balance sheet – 32 Disclaim er This presentation is based on information published by bpost in its Fourth Quarter 2017 Press Release and 2017 Annual Report, made available on March, 13 th 2018 at 5.45pm CET 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 statements 1 , 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

bpost at a glance

bpost at a glance Highlights of 4 Q1 7 Revenues up 3 8 .3 % • Driven by excellent growth in Parcels and by acquisitions (Radial € 9 5 5 .1 m consolidation as from mid-November) partly offset by lower Domestic Mail revenues Dom estic Mail underlying evolution • Accelerated e-substitution in transactional mail partly compensated by -6 .4 % volume growth in advertising mail, full year underlying volume trend in line with guidance Strong parcels perform ance • Domestic: excellent reported volume increase driven by strong + 3 0 .8 % e-commerce growth and C2C during year-end peak season; continued price/ mix effect of -6.9% fully mix related + € 2 3 7 .2 m • Logistic Solutions: mainly driven by Radial & DynaGroup acquisitions Cost evolution + € 2 6 9 .9 m • Opex influenced by acquisitions (€ + 257.7m) and year-end peak season • Increase in transport cost in line with international business evolution € 1 5 1 .4 m EBI TDA € + 9 .9 m above last year m ainly driven by new acquisitions Proposed total dividend per share equal to last year € 1 .3 1 € 1.06 already paid in December 2017 and € 0.25 to be proposed at the Annual gross General Meeting in May 2018 4

bpost at a glance Outlook for 2 0 1 8 1 Recurring EBI TDA in the range of € 5 6 0 to 6 0 0 m Dividend paym ent at least at the sam e level as 2 0 1 7 Revenues Operating expenses Increase driven by: Increase driven by: • Growth in dom estic parcels: volume double • Increase in transport cost (reflecting growth in digit, price/ mix effect between -3% and -6% International Parcels & Mail) • Continued growth in international parcels • Consolidation of acquired businesses supported by newly acquired businesses • Salary indexation expected as of November • Stable Radial revenues 2018 • Partly offset by volume decline in dom estic • Radial costs impacted by phase out w ebstore m ail 2 up to -7% , average domestic mail business and higher than expected opex price/ mix effect of + 4% (medical costs and productivity) • Continued decline in Banking & Financial • Partly compensated by continued productivity revenue im provem ents and optim ized FTE m ix and • Continued cost optim ization Capex • Recurring & Vision 2020 investments and business development investments for new subsidiaries (Radial, Ubiway and Dynagroup) for an estimated total amount of ~ € 140m 1 Outlook for 2018 includes the acquisitions of Radial, Bubble Post, Leen Menken, I mex and Mail I nc. 2 1Q18 will count 1 working day less on franking machines, 2Q18 will count 1 working day less on stamps, 3Q18 will count 1 working day more on franking machines and 2 more on stamps and 4Q18 will count 2 working days more on franking machines vs. the same quarters of 2017. 5

bpost at a glance Belgium ’s leading postal operator Built on strong foundations and w ith am bitious targets Leading m arket position in the 8 .1 m € 3 .0 bn resilient Belgian m ail m arket with a letters handled every day revenues balanced regulatory framework 1 9 0 ,0 0 0 Focused m ail and parcels business € 5 9 8 .0 m parcels handled every day with a proven strategy for profitable 1 9 .8 % growth EBITDA 6 6 2 6 7 4 Scope for continued cost post franchised im provem ents offices post points € 5 0 1 .6 m 1 6 .6 % Strong financial perform ance 5 EBIT supporting a high level of cash flow sorting centres generation and dividends € 3 2 9 .3 m 2 6 ,9 0 6 Proven perform ance track record net profit average # FTE & interims 2017 figures (normalized) 6

bpost at a glance A m odern and diversified m ail operator Revenues % of total Transactional m ail € 808m 27% Dom estic Mail One integrated Advertising m ail € 253m 8% dom estic € 1,353m distribution 45% Press € 293m 10% netw ork for mail and parcels Dom estic € 224m 7% I nternational Parcels player I nternational € 223m 7% € 796m hubs in London LHR and 26% Brussels Logistic Solutions € 349m 12% strategically located facilities in US, Canada, the Netherlands, I nternational m ail € 160m 5% Germany, Spain, Additional Poland, China, HK, Value added services € 102m 3% Singapore, Australia sources of and New Zealand revenues Banking and finance € 183m 6% € 3 ,0 2 4 m 1 € 832m 27% € 98m 3% Distribution revenues 2017 Retail & Other 2 € 289m 10% 1 45% Domestic Mail, 26% Parcels, 27% Additional sources of revenues and 1% Corporate revenue 2 I ncluding a.o. SGEI compensation for the retail network, philately and retailer products 7

bpost at a glance Focused strategy to create value and rew ard shareholders W e are W e W e are W e are m ail grow lean, agile & flexible @core 8

bpost at a glance W e are m ail - w e continue to focus on core m ail business Volum e & revenue drivers Transactional m ail e-substitution mainly in administrative mail; however, 7 9 % satisfaction level for the paper channel • (vs. 54% on average for digital channels) 1 • General cost cutting on all categories • Mix effect : shift towards cheaper products or reduced weight of mail items I llustration for search, number of times considered important per 100 purchases, Advertising m ail end-to-end • Strongly linked to GDP grow th (+ 1.7% in 2017, forecast 2018: + 1.8% ) • Marketing m ix is more balanced betw een different channels • Focus on 6 key segm ents with growth potential: retail & distribution (food + non-food), automotive, FMCG (food), retail fashion, home, SMEs Press Distribution of newspapers and periodicals are both part of the SGEIs 2 • • Revenues consist of: • Compensation from the Belgian State: agreed in the newspapers and periodicals contracts (cfr. p. 33) • Invoices sent directly to the editors 1 Source: bpost commissioned market research, 2016 (1,015 face to face interviews) 2 Services of General Economic I nterest 9