Bpost / : Analisten-presentatie (Engels)

Thirdquarter 2022results

Analystcall

November10th,2022

Investor presentation

Interim financial report 3Q22

Financial Calendar

23.02.2023 (17:45 CET)

Quarterly results 4Q22

16.03.2023

Annual report 2022

04.05.2023 (17:45 CET)

Quarterly results 1Q23

10.05.2023

Ordinary General Meeting of Shareholders

More on bpostgroup.com/investors

2

3Q22

Disclaimer

This presentation is based on information published by bpost group in its Third Quarter 2022 Interim Financial Report, made available on November 9th, 2022 at 5.45pm CET on bpostgroup.com/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

Highlights of 3Q22	3Q22

Results continue to track towards guidance range in seasonally softer quarter, driven by underlying parcels volume growth and pricing measures, mail price increase offsetting volume decline and continued efforts to mitigate unfavorable macro headwinds

Group operating income

€ 1,021.9m

Group adjusted

EBIT

€ 26.0m

2.5% EBIT margin

down -33.5% compared to prior year

Belgium

€ 18.9m

3.7% EBIT margin

• Total operating income at € 507.2m (+1.6%1)

1. underlying mail volume decline of -7.7% nearly offset by positive price/mix impact

• 1. parcels volumes -3.8% (or +7.8% excl. Amazon impact) and price/mix impact of +4.7%
• OPEX1 increase driven by
  (i) 5 recent salary indexations mitigated by FTEs reduction, and (ii) higher energy costs

E-Logistics Eurasia

€ 4.4m

2.8% EBIT margin

• Total operating income at € 155.3m (+12.9%)

1. continued expansion of Radial EU and Active Ants (+22.3%)

• 1. cross-bordersales increase supported by IMX integration
• OPEX increase (+12.2%) from
  (i) higher transport costs in line with volume development and IMX integration and (ii) higher payroll costs

E-Logistics N. Am.

€ 10.5m

2.8% EBIT margin

• Total operating income at
  € 376.5m (+20.2%2, or +2.9% at constant exchange rate), reflecting normalisation of Radial' sales post recent customer onboardings
• EBIT improvement (+19.6%) when excluding last year's cyber insurance recovery

3	1	Excluding impact of Ubiway Retail (UBR) sold on February 28th, 2022	2 Excluding impact of The Mail Group (TMG) sold on August 5th, 2021
	When including deconsolidation impact: -5.3% in Total operating income (UBR 3Q21: €36.5m) and -3.5% in OPEX (UBR 3Q21: €33.2m)	When including deconsolidation impact: +17.5% in Total operating income (TMG 3Q21: €7.2m)

Key financials 3Q22

€ million

Total operating income

Operating expenses

EBITDA

Depreciation & Amortization

EBIT

Margin (%)

Financial result

Profit before tax

Income tax expense

Net profit

FCF

Net Debt at Sept 30

Capex

Average # FTEs and interims

1 Unaudited figures

3Q21 977.6 871.6 106.0 68.7 37.3 3.8% -8.7 28.6 12.5 16.1 99.0 457.8 31.4 40,495

Reported
		3Q22
		1,021.9
		923.6
		98.3
1	75.5
		22.8
		2.2%
		6.3
		29.1
1	4.4
		24.7
	2	-32.1
		670.9
		47.0
		38,768

3Q21 976.2 871.6 104.6 65.5 39.1 4.0% -2.4 36.7 13.3 23.4 125.8 457.8 31.4 40,495

Adjusted	1

1

1

2

3Q22 1,021.9 923.6 98.3 72.3 26.0 2.5% 6.3 32.3 5.2 27.1 3.9 670.9 47.0 38,768

% ↑ 4.7% 6.0% -6.1% 10.3% -33.5%

-12.1% -61.1%15.7% -96.9%46.6% 49.8% -4.3%

3Q22

1. Amortization and impairments of intangibles recognized during PPA are adjusted, leading to increase in EBIT (€ +3.2m) and income tax (€ +0.8m)
2. Adjusted FCF excludes the cash Radial receives on behalf of its customers for performing billing services

4

Belgium pricing levers in both Mail and Parcels

3Q22 - Belgium

Strong parcel volume and price/mix development excluding Amazon

Belgium external operating income, € million

	3Q21						523.7
	Domestic
1		-1.4
Mail1
	Parcels
2			1.0
Belgium
3	Proximity and
convenience			5.6
	retail network

Domestic Mail

Stable operating income from:

• € -18.9m volume (-7.7% underlying volume decline against -7.5% in 3Q21)
• € +18.3m price/mix impact
• € -0.7m working days impact

In Transactional Mail:

Parcels Belgium

Parcels Belgium revenue up € +1.0m (+0.9%):		-4%

• Improved price/mix of +4.7%
• Parcels volume decline of -3.8%

+50%

Underlying Parcels volume growth

of +7.8% excl. Amazon's insourcing (-50.5%) vs. -8.1% and -2.9% in 1Q/2Q22

3Q19	3Q20	3Q21	3Q22	2

4	Value added
		2.5
services
	3Q22
				531.5
DECONSOLIDATED
3	Ubiway Retail 2		-36.5

3Q22 494.9

• Admin mail supported by COVID-19 communication in 3Q22
  (est. € 5m vs. € 4.5m in 3Q21)
• No change in known structural trends of continued e-substitution

1

Proximity and convenience retail network

Revenue up € +5.6m (+8.9%) mainly from new Management Contract, excl. deconsolidation of Ubiway2

3

Value added services

Higher revenues from fines solution

4

5

+7.8

1 Domestic mail is the sum of Transactional, Advertising and Press

2 deconsolidation impact of Ubiway Retail as of March 1st, 2022 (3Q21: €36.5m)