PostNL N : Q2 2022 Results Transcript

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PostNL 2Q 2022 Results	1	Analyst Meeting
8 August 2022

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PostNL 2Q 2022 Results	2	Analyst Meeting
8 August 2022

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Jochem van de Laarschot - Director Communications & Investor Relations PostNL:

Thank you operator and thank you everyone for joining us this morning. We have presented our second quarter results this morning. You have seen the press release and you can also download the presentation on our website. It is also visible on your screen if you are logged in. We will follow the usual pattern, we will go through the presentation with Herna Verhagen, our CEO and Pim Berendsen, our CFO, after which we will open up the floor for your questions, Herna over to you.

Herna Verhagen - CEO PostNL: Thank you Jochem and let us start with the key takeaways of the second quarter.

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PostNL 2Q 2022 Results	3	Analyst Meeting
8 August 2022

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Our normalised EBIT came in at EUR 10 million. We saw high inflation and pressure on consumer spending which impacted our cost development, but also e-commerce volumes, and that is what we of course saw in the volume at parcels. The domestic volume growth was still 3%, excluding non-recurring impact of Covid-19. The overall volume decline was 12.6% and this reflects the Covid-19 impact and the development in cross-border activities.

Volume of Mail in the Netherlands was down 7.4% and that is slightly better than expected. The cash flow reflects the step down in normalised EBIT and some working capital phasing.

Also important to mention is the progress on our important strategic items under which ESG and there is special attention for the 20% carbon efficiency improvements and the acceleration of our digital transformation of which I will give a few examples later in the presentation.

We also announced the interim dividend, which is set at EUR 0.14 per share and with the developments of course in volume and development in inflation and pressure on consumer spending, we have changed our outlook for the full year from EUR 145 million to EUR 175 million. Pim will give more highlights on that change.

Secondly, we keep the free cash flow at EUR 110 million to EUR 140 million euro at the lower end of the already initially guided range.

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PostNL 2Q 2022 Results	4	Analyst Meeting
8 August 2022

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Let us move into the numbers and of course the external headwind of inflation and costs rising, for example labor costs, impacted results. What you find over here is that revenue came down compared to the second quarter of 2021 with 11%, which is due to the change in Covid. No Covid-impact anymore in the second quarter of 2022.

Our normalised EBIT came down to EUR 10 million. Part of that is of course non-recurring Covid, which was EUR 26 million and part of that is business impact and we will give you details on that business impact in later slides.

Our free cash flow in the second quarter was negative. As already said, due to our normalised EBIT decrease and of course the phasing of working capital. We had a normalised comprehensive income which was positive at EUR 19 million.

The share buyback for 2022 is fully completed and Pim will give details on one of the slides which will come in a few minutes.

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PostNL 2Q 2022 Results	5	Analyst Meeting
8 August 2022