Investor presentation Fourth quarter 2019 March 2020
Investor presentation Fourth quarter 2019 Contents Financial Calendar 04.05.2020 (17.45 CET) Highlights & guidance 4Q19 results Mail & Retail – 54 & 55 Quarterly results 1Q20 Parcels & Logistics Eur & Asia – 56 & 57 4Q19 Highlights – 4 EBIT bridge – 38 Parcels & Logistics N. America – 58 & 59 13.05.2020 FY19 Highlights – 5 Key financials – 39 Corporate – 60 Outlook 2020 – 6 Results by segment – 40 Cash flow – 61 Ordinary General Meeting of Shareholders Mail & Retail – 41 & 42 bpost Group at a glance Additional Info 18.05.2020 Parcels & Logistics Eur & Asia – 43 & 44 Parcels & Logistics N. America – 45 & 46 Investment rationale – 8 IFRS16 – 63-64 Ex-dividend date Corporate – 47 Dividend policy – 9 Relationship with State – 65 20.05.2020 Cash flow – 48 Overview – 10 USO & SGEI – 66 Balance sheet – 49 LT vision & strategy – 11 European mail market – 67 Payment date Management – 12 FY19 results Key contacts – 68 Sustainability – 13 Mail & Retail – 14-22 EBIT bridge – 51 Parcels & Logistics Eurasia – 23-30 Key financials – 52 More on corporate.bpost.be/investors Parcels & Logistics N. America – 31-36 Results by segment – 53 Disclaimer This presentation is based on information published by bpost Group in its Fourth Quarter 2019 Interim Financial Report and in its 2019 Annual Report, both made available on March, 17th 2020 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 4Q19 Roadshow presentation
Highlights 4Q/FY19 Guidance 2020
Highlights of 4Q19 4Q19 4Q19 fully in line with our expectations Group operating Mail & Retail Parcels & Logistics Parcels & Logistics income Eurasia N. Am. € 1,113.8m € 51.5m € 13.9m € 10.6m 9.6% EBIT margin 5.9% EBIT margin 2.7% EBIT margin • T otal operating income at • T otal operating income at • T otal operating income at € 536.8m (-2.3%) resulting from € 234.4m. Excluding the net € 395.3m (+3.8%), supported domestic mail decrease and YoY impact of contingent by FX, confirms positive deconsolidation of Alvadis considerations reversals, commercial development, growth of +8.8% driven by partly offset by 2018 customer • Underlying mail volume decline Parcels BeNe (+22.4%) churn and repricing impact limited to -5.5% supported by Group adjusted EBIT favourable phasing effect in • Strong organic Parcels BeNe • TCV at $ 385m above FY target transactional and small growth volumes at +24.3% driven by • Adjusted EBIT mainly impacted € 69.2m in advertising mail e-commerce growth and by costs related to new client DynaLogic • Adjusted EBIT impact launches 6.2% EBIT margin (-36.8%) from top-line • Adjusted EBIT excluding the evolution and higher payroll & elements mentioned above and project costs a goodwill impairment in 4Q18 increased by € 6.6m (+115%) driven by business performance 4 4Q19 Roadshow presentation
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 Logistics Eurasia the high end of the 6-8% range 7.9% EBIT margin Parcels & € -3.0m Adjusted EBIT slightly below Logistics N. Am. break-even -0.3% EBIT margin Capex € 162.3m € 150m - € 185m € 0.73 gross per share At least 85% of 2019 BGAAP Dividend net profit of bpost SA/NV (85% pay-out ratio) 5 4Q19 Roadshow presentation
Outlook for 2020 Outlook FY20 Mail & Parcels & Parcels & Group Dividend Retail Logistics Europe Logistics North & Asia America Low single-digit % growth 2020 dividend will depend T otal operating income up Low teens % growth in Mid-single-digit % growth in total operating income on the long-term capital to -5% total operating income in total operating income allocation policy which is -9% to -11% underlying Adjusted EBIT between 6-8% adjusted EBIT Adjusted EBIT margin • being reviewed by the new Domestic Mail volume € 240-270m margin positive up to 2% CEO and the Board decline Gross capex up to € 200m Approved mail pricing • impact of +5.1% 8-10% adjusted EBIT margin Corona We are monitoring closely the potential impact of the COVID-19 virus on bpost Group. It cannot be excluded that there could be negative impacts on 2020 Group results. We are currently not in a position to make more concrete assessments. 6 4Q19 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 a sustainable dividend 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 regulation, We develop sustainable activities in the network high growth e-commerce logistics & optimization,… parcels business in our Belgium/Netherlands home market and key geographies in Europe and North America 8 4Q19 Roadshow presentation
We create value for shareholders at a glance – Group Capital allocation and dividend policy are under review Dividend Policy IPO dividend policy until 2019: Minimum of 85% of BGAAP net profit of the • mother company bpost SA/NV (unconsolidated) Dividend policy as from 2020: Dividend policy will depend on the capital • allocation policy which is being reviewed by the management team and the board 1.31 1.31 1.31 1.29 1.26 1.13 0.25 0.25 0.25 0.24 0.22 0.20 Dividend is constrained by net results of a given year 0.73 0.11 1 (in BGAAP) + distributable reserves 1.05 1.06 1.06 1.06 1.04 0.93 0.62 2013 2014 2015 2016 2017 2018 2019 Distributable reserves (€ 199m end 2019) Pay-out ratio built gradually as from 2013, primarily to neutralize the non-recurring impact of 91% 85% 90% 85% 90% 100% 85% exceptional costs Interim gross DPS (€) Final gross DPS (€) 1 Proposed final gross dividend per share to be approved by General Meeting of May 13, 2020 9 4Q19 Roadshow presentation
A diversified mail operator with a footprint in at a glance – Group e-commerce logistics Revenues % of total € 3,837.2m 1 € 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 Cross-border € 300m 8% 21% average # FTE & interims Parcels & Logistics E-commerce logistics € 1,018m 26% North America International mail € 87m 2% € 1,098m 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 10 10 4Q19 Roadshow presentation
Long-term vision & strategy 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 11 11 4Q19 Roadshow presentation
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