Investor presentation. Third quarter 2014

Transcription

1 Investor presentation Third quarter 204 November - December 204

2 Investor presentation third quarter Contents bpost at a glance Overview 4 Transformation 5 Products 6 Strategy 7 Domestic Mail 8 Parcels 9 Additional sources of revenues 0 Productivity Vision CSR 3 Dividend policy 4 Summary of key financials FY3 5 Balance sheet 6 Relationship with State 7 Management 8 Current trading: 3Q4 Highlights 20 EBITDA bridge 2 Key financials 22 Revenues 23 Domestic Mail 24 Parcels 25 Additional sources of revenues 26 Costs 27 Cash flow 28 Dividend Outlook Additional Info EBITDA bridge YTD4 32 Scope effects 33 Key financials YTD4 34 Revenues YTD4 35 Cash flow YTD4 36 Key contacts 37 Financial Calendar More on Ex-dividend date (interim dividend) Dividend payment date (7:45 CET) Annual results FY (7:45 CET) Q5 results Disclaimer This presentation is based on information published by bpost in its Third Quarter 204 Interim Financial Report, made available on November, 3 rd at 5.45pm CET on This information forms regulated information as defined in the Royal Decree of 4 November The information in this document may include forward-looking statements, 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. as defined among others under the U.S. Private Securities Litigation Reform Act of 995

3 bpost at a glance

4 bpost at a glance 4 Belgium s leading postal operator Company description One integrated network for domestic mail and parcels International mail and parcels through hubs in London LHR and Brussels and strategically located facilities in US, Canada, China, HK, Singapore, the Netherlands and Australia Financial and insurance products as well as valueadded solutions 203 revenues split 64% 0% 26% DOMESTIC MAIL PARCELS OTHERS Key figures 4.7m households served 5x/week 0m letters handled every day 05,000 parcels handled every day 25,683 FTE K post offices 3,200 post boxes 9,200 mail rounds/day 5 sorting centres franchised post points Why bpost? Proven performance track record Leading market position in the Belgian mail market with a balanced regulatory framework Focused mail and parcels business with a proven strategy for profitable growth Scope for continued cost improvements Strong financial performance supporting a high level of cash flow generation Financials Revenues ( millions) ,38 2,365 2,46 2,429 Normalized EBIT ( millions) results Revenues Normalized EBITDA Normalized EBIT Net profit FCF EPS 2.4bn 536.9m 22.% 436.m 8.0% 249.0m 287.9m.43 Normalized figures are neither audited nor have been subject to a limited review

5 bpost at a glance 5 Transformation journey: continuous profitability improvement from loss making in 2003 Transformation journey Start of continuous optimization of delivery rounds Building of new sorting centers Transformation of the network 2007 Automated round sorting and mail sequencing 2009 Implementation of new distribution structure with reduced number of buildings New strategic Vision 2020 program in mail service operations to further increase efficiency Key events 2003 New management & start of the transformation period 2006 CVC and Danish Post enter into the capital for 50%- share (split 50/50), government holds 50%+ share 2008 Danish Post sells its stake to CVC 203 IPO in June at 4.5/share CVC sells 30% in IPO and remaining 20% in December Normalized EBIT Normalized figures are neither audited nor have been subject to a limited review

6 bpost at a glance 6 bpost product and service offering Normalized, 203 Product line Revenues % of total Main direct competitors Domestic Mail,55m 64% Transactional mail 96m 40% License obtained in 203 Advertising mail 276m % For unaddressed mail only Press 34m 3% Parcels 250m 0% Domestic 42m 6% International 92m 4% Special Logistics 6m % Additional sources of revenues 628m 26% International mail 99m 8% Value added services 90m 4% Banking and finance 209m 9% Other 2 30m 5% N/A Total revenues 203 2,429m 00% Only reported results have been audited; the presentation of normalized results is not in conformity with IFRS and is not audited 2 Including a.o. SGEI compensation for the retail network, philately, retailer products, intercompany elimination, unallocated operating income

7 bpost at a glance 7 Focused strategy as an answer to observed trends E-substitution Continue to focus on core mail business Innovate /grow within core competencies Generate continued productivity gains E-commerce Leading to value creation & rewarding of shareholders Keep stakeholders on board Services at home

8 Telco Cie à votre service: (voir au dos de votre facture) bpost at a glance 8 Continue to focus on core mail business While being impacted by e-substitution mail remains important 90% of customers check their mail box every working day 73% with internet connection prefer paper and we run marketing programs to defend the value of mail bpost has the ability to partly compensate the volume decline through price increases Volume 2 specific programs to support mail resilience Proves effectiveness of Direct Mail Advertising Telco Cie Offer solutions to address the customers preference for paper Transactional Mail Pricing General pricing principles of uniformity, nondiscrimination, transparency, affordability, costorientation apply to all USO products Price-cap formula for single piece mail & USO parcels falling within small user basket (inflation + quality bonus + unused credit 2 ) Volume and operational discounts allowed for other USO products (bulk) Price increases done in practice on a yearly basis Universal Service Obligation 2 Quality bonus = [Average quality 90%]^2 /,000; unused credit = cumulated price increases allowed under cap but not applied for last 3 years. Price increases need to be approved by the regulator

9 bpost at a glance 9 Innovate/grow within core competencies (/2) bpost has an established position in parcels Unique selling proposition B2C/C2X segment B2B segment Offer the best last mile and broadest delivery options through: Others Others Domestic parcels Flexible at home delivery 6 days/week (incl. Saturday delivery) Densest network of pick-up and drop-off points in Belgium (,250) ~25 parcel lockers: all-time accessible pick-up locations ~50% Segment size: ~ m growth of 5% p.a. Capture share of e-commerce growth ~5% Segment size: ~ m growth of 3% p.a. Double market share by 207 International parcels The rationale Originated to protect the Belgian home market by: Offering US and Chinese e-tailers solutions to ship products into Europe and other parts of the world Ensuring last mile delivery into Belgium and via injection into other postal operator s delivery network for other countries How we do it We offer direct access to international postal networks and rates Asset-light business model: outsourcing of air and road transport as well as last mile delivery outside of Belgium Dedicated international sorting center Strategic presence in North America (Landmark) and Asia (Beijing, Hong Kong, Singapore) driving flows towards EU Integrated service range: customs clearance, warehousing, pick & pack and last mile delivery

10 bpost at a glance 0 Innovate/grow within core competencies (2/2) and several other sources of revenues besides mail and parcels International mail What? Business model Mail originating from foreign countries and delivered to other countries Asset-light business model and fully variable costs Dedicated sorting centre and hub in Brussels Active in the US, Europe and Asia Value added services Customer specific solutions which leverage our key assets: last mile, retail network and financial backbone Collect and handling services for mail Services at the front door (gaz, water, electricity) Solutions tailored to specific needs Banking & finance Agent of bpost bank ~50% of revenue (commissions) Direct offering ~50% of revenue Associate 50/50 with BNP Paribas Fortis (bpost is sole retail agent) Basic retail, investment and insurance products Established footprint in Belgium through the bpost retail network Payment services, cash at the counter, public finance solutions Continuous development of innovative products and services

11 bpost at a glance bpost has a proven track record and plans for further productivity gains bpost has a systematic, well-rounded approach to identify and capture cost improvements across the entire organization Historic FTE evolution End of year FTEs, % p.a to 3: -, bpost has plans for further productivity gains supported by natural attrition and Vision 2020 Age pyramid Headcount per age, ,469 8,9 0,407 37% of bpost s employees are above 50 years old Non Baremic Contractuals Baremic Contractuals Statutories

12 bpost at a glance 2 Vision 2020 will drive substantial productivity improvements by 207 Declining mail volumes Increasingly complex product mix Improved operational platform Five specialized industrial mail centers for letters automatically sorting all formats (large & small) and centrally preparing mailbags Enabling New central parcels sorting facility (Brussels) with increased capacity merging the two existing facilities (Antwerp and Charleroi) Increasing parcels volumes Further reduction of FTEs (from 800 to,200 yearly through 207) through eliminating manual mailbag preparation and transport time to/from start of postmen s round as a result of which they can serve more addresses Further centralization of distribution activities from current 270 to 60 mail centers as backbone of the logistic network

13 bpost at a glance 3 We want to keep stakeholders on board Distribution quality Environment Percentage letters in D to 3: +2 + st on the IPC Environmental Ranking 203 # 202 #2 20 # #4 Carbon disclosure project 8/ Customer satisfaction 3 Percent to 3: +3 Engaged employer Engagement Well-being 75 + # work accidents -5% Recognize experience 08 people graduated Note: more information regarding bpost s Corporate Social Responsibility is available on the website: D+ delivery of domestic single piece items up to 2 kg, stamped at Prior tariff 2 Quality scores for 203 subject to approval by the IBPT/BIPT 3 Satisfied customers (score of 5 or above on a scale from to 7 on the question: Overall, how satisfied are you about bpost? ) based on bpost commissioned survey by Ipsos-Synovate

14 bpost at a glance 4 Reward shareholders: total dividend of.3/share gross based on 203 results Dividend Policy Dividend policy: pay-out of minimum 85% of BGAAP reported net profit (unconsolidated) Annual dividend payment Interim in December of financial year based on 0-month results Final in May of year following financial year The dividend payment is constrained by the net results of a given year + distributable reserves Distributable reserves are being built gradually as from 203 Final payment based on 203 results: Dividend 203 Interim dividend paid in December 203 (, gross per share) Final dividend payment (, gross per share based on 47.5m bpost S.A./N.N. net profit after tax under BGAAP and 85% payout ratio) Total dividend for Dividend based on 204 results should be higher (cfr. page 30) Other shareholders returns Exceptional dividends and share buy-backs are constrained by the level of distributable reserves under BGAAP ( 36.7m end 203 of which 4.5m untaxed). Distributable reserves are currently being built primarily to safeguard the dividend level if bpost were to incur exceptional costs. Capital reduction/repayment is constrained by the level of capital of bpost SA/NV ( 363.9m end of 203). There is no mechanism under Belgian corporate law to create additional distributable reserves or capital in the specific circumstances of bpost. Given bpost s net cash position and significant borrowing capacity, cash is not a constraint to shareholders returns even taking into account capex and potential acquisitions.

15 bpost at a glance 5 Summary of key financials FY3 million Reported Normalized % Total operating income (revenues) 2,45.7 2, ,45.7 2, % Operating expenses,994.8,89.7,93.7,89.7.% EBITDA % Margin (%) 7.4% 22.6% 20.8% 22.% EBIT % Margin (%) 3.4% 8.4% 6.7% 8.0% Profit before tax % Income tax expense Net profit % FCF 2 (6.8) % bpost S.A./N.V. net profit (BGAAP) % Net Debt/ (Net cash) (68.6) (360.7) (68.6) (360.7) -4.7% 203: gain of 4.6m from sale of Certipost divisions 202: net loss of 8.m due to: ) Gain on partial curtailment of employee benefit plan 2.m 2) Gain on pending litigation provision 22.7m 3) Loss on provision relating to European Commission Decision 24.9m Note: an Excel download of detailed financials per quarter is available on the website: Normalized figures are neither audited nor have been subject to a limited review 2 Operating FCF = cash flow from operating activities + cash flow from investing activities; normalization excludes the impact of the 202 and 203 repayment of prior compensation, following the 202 EU ruling

16 bpost at a glance 6 Supported by a strong balance sheet million Assets Equity and liabilities Employee benefit liabilities Cash & cash equivalents Other assets Investments in associates Trade & other receivables Inventories PPE & intangible assets, , Interest-bearing loans & borrowings Provisions Trade & other payables Employee benefits Total equity, , Termination (early retirement) Post retirement (family allowance, transport, bank, ) 290,8 54, Deferred tax asset Long term benefits Pension savings days Quota days Part-time work No pension liabilities Other long term benefits (disability annuities) Dec 3, 203 Sep 30, 204 Dec 3, 203 Sep 30, 204 Mostly unfunded (no investment risk) Volatility mainly through the discount rate bpost has no pension deficit: as is customary in Belgium all pensions are paid as part of national social security

17 bpost at a glance 7 bpost s long term relationship with the State State as a long term shareholder Belgian State has >50% shares bpost s board is composed of 6 board members and CEO appointed by the Belgian State and 5 independent directors Belgian State supports a regular dividend policy Shareholder Belgian State bpost staff # shares 02,075,649 96,479 bpost provides SGEIs on behalf of the State bpost provides a range of public services primarily under a Management Contract (Fifth, covering 203-5) ~ 300m operating income per year: compensation based on Net Avoided Cost with bpost sharing efficiency improvements if quality targets are met Tender process for newspapers and periodicals launched (for entire territory and on non-discriminatory basis). Indicative Invoice to the State by SGEI for 203: State as important customer State is a key commercial client to bpost Several other agreements in place with the State, such as European license plates (won by bpost through tender) Free float 97,004,754 Others Newspapers Retail Network SGEI stands for Services of General Economic Interest Periodicals

18 bpost at a glance 8 bpost s management team and organization Marc Huybrechts Mail & Retail Solutions Kurt Pierloot Mail Services Operations & International Koen Van Gerven CEO & Parcels Pierre Winand CFO, Service Operations & ICT Mark Michiels Human Resources & Organization

19 Current Trading 3Q4

20 3Q4 20 Highlights of 3Q4 Operating income (revenues) at 569.2m, stable organically versus last year but negatively impacted by building sales being 7.7m lower than the same quarter last year during which a sizeable property was sold. Improved underlying Domestic Mail volume decline at -4.3% (-4.9% in H4) helped in part by one-off mailings by some customers but still impacted by trends already observed in e-substitution and advertising mail sales, resulting in -4.7% year-to-date. Reported decline for the quarter stood at -4.6% (the underlying figure eliminates the impact of one less working day in the quarter). Domestic parcels volume up 0.3% (+5.2% in H4) helped by strong performance of e-commerce customers, first signs of recovery in C2C and some one-off actions. International parcels grew solidly by 0.6m, bringing total organic parcels growth to 3m. Slight organic growth in Additional sources of revenues of.4m. Costs (excluding transport) down 7.2m organically compared to 3Q3. Underlying FTE reduction of 840, in line with expectations. EBITDA margin stable versus 3Q3 at 04.4m or 8.3%, in line with expectations, impacted by non-operational items such as lower building sales and restructuring charges. Net profit of bpost S.A./N.V. under BGAAP for the first 9 months at 28.m.

21 3Q4 2 3Q4 EBITDA in line with outlook. Lower gains on building sales compared to 3Q3 when one sizeable property was sold Normalized, million +0.2m +0.4m / +0.4% EBITDA 3Q3 Scope Domestic Mail Parcels Additional sources of revenues Corporate Costs EBITDA 3Q4 00% acquisition of Gout, BEurope, Ecom and Starbase by Landmark Global Inc. Total operating income (revenues) Of which building sales -7.7m (last year included one sizeable property for.4m in 3Q3) Normalized figures are neither audited nor have been subject to a limited review

22 3Q4 22 Summary of key financials 3Q4 million Reported Normalized 3Q3 3Q4 3Q3 3Q4 % Total operating income (revenues) % Operating expenses % EBITDA % Margin (%) 8.3% 8.3% 8.3% 8.3% EBIT % Margin (%) 4.4% 4.6% 4.4% 4.6% Profit before tax % Income tax expense Net profit % FCF (2.5) (38.5) (2.5) (38.5) - bpost S.A./N.V. net profit (BGAAP) % Net Debt/ (Net cash), at 30 September (535.4) (645.9) (535.4) (645.9) 20.6% Normalized figures are neither audited nor have been subject to a limited review

23 3Q4 23 Total operating income (revenues) of 569.2m in 3Q4, stable on an organic basis. 3Q3 revenues included disposal proceeds of.4m for one large property. Normalized, million 3Q3 Scope² Organic 3Q4 % Org Domestic mail Parcels Additional sources of revenues Transactional mail % Advertising mail % Press % Domestic parcels³ % International parcels % Special logistics % International mail % Valued added services % Banking and financial % Others % Corporate % TOTAL % Normalized figures are neither audited nor have been subject to a limited review ² Scope changes related to acquisitions of Gout International BV, Beurope, Ecom and Starbase ³ Defined as domestic and Belgian in- and outbound

24 3Q4 24 Better Domestic Mail underlying volume decline at -4.3% helped by some one-off actions from customers and no new aggressive e-substitution measures. Normalized total operating income (revenues), million 3Q3 Working day impact Volume -2.9 Price/Mix Comments on 3Q4 business working day less (affecting transactional mail) Underlying volume decline at -4.3%. Transactional mail remained affected by e-substitution (although we did not see additional customers implementing aggressive measures) and cost reduction measures by customers. Some one-off mailings impacted positively the volume evolution. Advertising mail remained weak. Reported Underlying² Q4 2Q4 3Q4 YTD4 Q4 2Q4 3Q4 YTD4 Transactional mail -5.3% -5.2% -5.% -5.2% -5.3% -5.9% -4.7% -5.3% Advertising mail -2.7% 2.0% -3.7% -.3% -2.7% -3.6% -3.7% -3.3% Press -3.2% -2.9% -2.5% -2.9% -3.2% -2.9% -2.5% -2.9% Domestic Mail -4.6% -3.6% -4.6% -4.2% -4.6% -5.% -4.3% -4.7% YTD3 Elections 204, Price increase in line with policy. 3Q YTD4, Normalized figures are neither audited nor have been subject to a limited review 2 2Q4 was impacted by elections. In 3Q4 we have business working day less and in 4Q4 we will have business working day more compared to 203.

25 3Q4 25 Continued growth of international parcels. Strong volume performance in domestic parcels. Normalized total operating income (revenues), million 3Q Comments on 3Q4 YTD3 73,6 Scope.9 5,6 Before organic evolution Domestic Parcels Volume increase in 3Q4 of +0.3%, showing improvement vs. H4. Volume growth as the result of strong performance of e-commerce, first signs of recovery in the C2C parcels and a one-off action of a customer (0.6% of the 0.3% growth). Slightly positive price/mix effect. 79,3 7,5 International Parcels 0.6 Continued growth on lanes from US ( +5.7m) with higher growth than 2Q4; from China ( +2.2m) in line with 2Q4 growth and shipments to China still growing slightly ( +.4m). 32,9 Special Logistics -.0 Turnaround of activities implemented: revenues decreased as a result of discontinuing the activities in distribution & warehousing. -2,5 3Q YTD4 27, ,9 Normalized figures are neither audited nor have been subject to a limited review 2 Defined as domestic and Belgian in- and outbound

26 3Q4 26 International mail & VAS performing well, partly offset by Banking & Financial. Normalized total operating income (revenues), million 3Q Comments on 3Q4 YTD Scope Before organic evolution International Mail 3.0 Good international mail performance 4.2 VAS 0.6 Contribution of solutions thanks to European license plates, Car Registration Cards and digital printing of magazines. 5. Banking & Financial -.3 Mainly driven by phasing ( -0.6m) and lower volumes ( -0.3m) of financial transactions managed on behalf of the Belgian State. -.5 Others -0.9 Lower sales of physical products sold in post offices Q YTD Normalized figures are neither audited nor have been subject to a limited review

27 3Q4 27 Cost savings in other OPEX offset by increase in transport costs. Personnel costs impacted by one off elements and delays in holiday taking. Operating expenses excl. depreciation and amortization, Normalized, million Comments on 3Q4 3Q3 3Q3 before organic evolution Scope Payroll & Interim Transport costs 6.9 Other SG&A -3.2 Reported FTE reduction of,092 FTE ( -3.3m) However, delays in holiday taking impacted costs ( +2.9m provisioned). The underlying reduction of FTE is therefore estimated at 840 FTE. Mix impact of +0.2m due to lesser use of students and higher use of interims. Price effect negative at +3.3m, mainly due to merit increases, other premiums and CLA impact ( +2.0m as announced). Other effects relating to restructuring charges ( +3.m) and employee benefits ( +.8m). million Q4 2Q4 3Q4 Volume (#FTE, underlying) -,037 -, Volume Mix effect Price effect Other Restructuring 3. Total Increase in transport costs mainly volume driven (increase in international activities), including one-offs for +.5m. YTD3, , Other costs Q Decrease in rental costs (fleet), other goods, energy delivery and publicity costs, partly compensated by the increase in maintenance & repairs (fleet and facilities). Mainly decrease in other operating charges (impacted by oneoff costs in September 203 related to real estate and local taxes), favourable impact of movements on provisions and decrease in material costs. YTD4-0.8, Normalized figures are neither audited nor have been subject to a limited review

28 3Q4 28 Operating free cash flow of -38.5m in 3Q4 million 3Q3 3Q4 Delta Cash flow from operating activities Cash flow from investing activities Operating free cash flow Financing activities Net cash movement Capex Improved results of operating activities ( +4.2m) Negative evolution of the working capital vs. 3Q3 ( -24.2m) mainly due to the announced reversal of the positive phasing effect recorded in Q4 relating to terminal dues Higher capital expenditure in 3Q4 ( -3.7m) related to Vision 2020 and in particular the extensions of the sorting centres and the installation of new sorting machines for mixed/large format mail Lower proceeds sale of buildings ( -4.5m) mainly due to LY sale of a large property Operating free cash flow = cash flow from operating activities + cash flow from investing activities, excludes the impact of the 203 repayment of prior compensation, following the 202 EU ruling and deposits received from 3rd parties.

29 3Q4 29 Based on bpost SA/NV 9-month results, shareholder remuneration should be higher than last year First nine months results of bpost SA/NV (BGAAP) are already at the level reached after 0 months in 203 (corrected for the exceptional tax charge). million bpost SA/NV - results first 9 months (BGAAP) Exceptional tax charge 7.6 NA Total bpost SA/NV - results October (BGAAP) 25.2 Results of first 0 months corrected for exceptional tax charge 28.3 As a result, the Board of Directors expects to declare a higher dividend based on 204 results.

30 3Q4 30 Outlook for 204 We reiterate our confidence to be able to report operating results (EBITDA and EBIT) in line with last year for the 4Q4 and consequently to keep the advance booked in the first nine months. As a result, the level of the dividend should be higher than last year. Revenues should be stable or slightly above last year. Unchanged underlying volume trends in Domestic Mail partly helped by a better 3Q4 make us return to our initial volume decline outlook of around -5% for the full year. In domestic parcels, we remain confident that full year growth should be above the one achieved in the first half. International parcels growth is expected to be in line with the first half of the year for routes into Europe. Traffic to China related to milk powder is expected to decline. Taking the phasing of the productivity improvement initiatives into account, the FTE reduction for 204 is still expected to be at the low end of the reference range of 800 to,200 FTE/year. We do not anticipate any material exceptional cash outflows for the remainder of the year which means that cash generation should follow the normal seasonality. Net capex is expected to be below 90m.

31 Additional info

32 Additional info 32 EBITDA bridge YTD4 (9 months) Normalized, million +0.4m +25.3m / +6.% EBITDA YTD 3 Scope² Domestic Mail Parcels Other sources of revenues Corporate Costs EBITDA YTD 4 00% acquisition of Gout, Beurope, Ecom and Starbase by Landmark Global Inc. Total operating income (revenues) Of which building sales -6.m (last year included one sizeable building) Normalized figures are neither audited nor have been subject to a limited review ² Scope changes related to acquisitions of Gout International BV, Beurope, Ecom and Starbase

33 Additional info 33 Scope elements affecting results: small bolt-on acquisitions relating to international parcels activities Topic Description High-level impact Changes in scope Acquisition of Gout International BV and BEurope Acquisition of Ecom In Jan. 204, Landmark Global Inc. acquired 00% of the shares of Gout and BEurope both based in the Netherlands Both companies offer import services for customers looking to sell their products in Europe. This includes customs clearance services, warehousing, pick & pack and last mile delivery Landmark Global Inc. acquired 00% of the shares of Ecom Ltd in February 204 Import services for goods in UK Additional operating income of.7m and additional operating expenses of.5m in 3Q4, bringing YTD contributions to 5.0m and 4.2m respectively Additional operating income of 0.5m and additional operating expenses of 0.5m in 3Q4, bringing YTD contributions to.3m and.7m respectively Acquisition of Starbase Landmark Global Inc. acquired 00% of the shares of Starbase in February 204 (based in US) Import services for goods in the US Additional operating income of 0.3m and additional operating expenses of 0.3m in 3Q4, bringing YTD contributions to 0.8m and 0.8m respectively

34 Additional info 34 Summary of key financials YTD4 (9 months) million Reported Normalized YTD3 YTD4 YTD3 YTD4 % Total operating income (revenues),802.2,809.4,787.7, % Operating expenses,372.4,368.3,372.4, % EBITDA % Margin (%) 23.9% 24.4% 23.2% 24.4% EBIT % Margin (%) 20.2% 20.9% 9.5% 20.9% Profit before tax % Income tax expense Net profit % FCF % bpost S.A./N.V. net profit (BGAAP) % Net Debt/ (Net cash), at 30 September (535.4) (645.9) (535.4) (645.9) 20.6% Normalized figures are neither audited nor have been subject to a limited review

35 Additional info 35 Total operating income (revenues) YTD4 (9 months) Normalized, million YTD3 Scope² Organic YTD4 % Org Domestic mail Parcels Additional sources of revenues Transactional mail % Advertising mail % Press % Domestic parcels³ % International parcels % Special logistics % International mail % Valued added services % Banking and financial % Others % Corporate % TOTAL, , % Normalized figures are neither audited nor have been subject to a limited review ² Scope changes related to acquisitions of Gout International BV, Beurope, Ecom and Starbase ³ Defined as domestic and Belgian in- and outbound

36 Additional info 36 Operating free cash flow of 325.2m YTD4 (9 months) million, normalized Improved results of operating activities ( +44.5m) Positive evolution of the working capital vs. LY ( +52.2m). Apart from LY s payment related to the competition claim fine ( +37.4m), most other categories in working capital showed a positive evolution (clients, social debts, suppliers, ) LY capital increase of bpost bank ( +37.5m) LY sale of Certipost ( -5.m) LY purchase remaining 20% MSI ( +6.8m) Newly acquired subsidiaries in 204 ( -9.m) Higher capital expenditure in 204 ( -5.0m) Lower proceeds sale of buildings ( -2.8m) YTD3 YTD4 Delta Cash flow from operating activities Cash flow from investing activities Operating free cash flow Financing activities Net cash movement Capex LY repayment of SGEI overcompensation ( +23.m) and decapitalization & exceptional dividends ( +98.0m) This year mainly dividends paid ( -40.0m) Normalized figures are neither audited nor have been subject to a limited review 2 Operating free cash flow = cash flow from operating activities + cash flow from investing activities, excludes the impact of the 203 repayment of prior compensation, following the 202 EU ruling and deposits received from 3rd parties.

37 Key contacts 37 Pierre Winand CFO, Service Operations and ICT Direct: + 32 (0) Mobile: +32 (0) Address: bpost, Centre Monnaie, 000 Brussels, Belgium Paul Vanwambeke Director Investor Relations paul.vanwambeke@bpost.be Direct: + 32 (0) Mobile: +32 (0) Address: bpost, Centre Monnaie, 000 Brussels, Belgium Saskia Dheedene Manager Investor Relations saskia.dheedene@bpost.be Direct: + 32 (0) Mobile: +32 (0) Address: bpost, Centre Monnaie, 000 Brussels, Belgium

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