13 May Shareholders meeting 2015

Transcription

1 13 May 2015 Shareholders meeting 2015

2 Achievements 2014 Koen Van Gerven CEO

3 Our successful and focused strategy in action Generate continued productivity gains Continue to focus on core mail business Innovate/ grow within core competencies Value creation & rewarding of shareholders Keep stakeholders on board

4 Our successful and focused strategy in action Generate continued productivity gains Continue to focus on core mail business Innovate/ grow within core competencies Value creation & rewarding of shareholders Keep stakeholders on board

5 Our mail volumes remained under pressure, partly compensated by a small price increase -4.4% volume decrease 5 Aggressive push to e-invoicing implemented by some important customers General cost cutting on postal spend Switch to cheaper products +2.3% price increase

6 We demonstrate the importance of Direct Mail in the marketing mix for internet pure players 6 Convincing tests with Zalando resulted in 4 campaigns

7 Our successful and focused strategy in action Generate continued productivity gains Continue to focus on core mail business Innovate/ grow within core competencies Value creation & rewarding of shareholders Keep stakeholders on board

8 We started the roll out of Vision learning platforms to test concepts & processes Completed in Gent in December 2014, Antwerp is about to be ready Installation of 2 Mixed Sorting Machines in BXL X Finalise Charleroi X and Liège X Implementation over 2015 & Installation of 12 Mixed Sorting Machines for big formats New Sorting center Approval for building BXL X Finalize construction in 2016

9 Vision 2020 What will it change for the letter process?

10 Our successful and focused strategy in action Generate continued productivity gains Continue to focus on core mail business Innovate/ grow within core competencies Value creation & rewarding of shareholders Keep stakeholders on board

11 Domestic parcels, we want to keep the best last mile 11 Successful campaign with 125 lockers New online tool Saturday & Sunday delivery New pick-up offering New outdoor visibility +7.0% volume growth in 2014

12 12 International parcels are gaining importance Service offering reinforced through acquisition of companies Landmark Global : integration of international activities in 1 combined structure 2014 revenues increased +57%

13 13 Vision 2020 One national parcel sorting facility with double capacity Bussels X Operational by end 2016

14 Vision 2020 What will it change for the parcel process?

15 15 We continue to innovate... In roll out in 2014 Customer home Client contacts at the front door on behalf of our customers Launched October 14 in Antwerp Extension to Brussels via CityDepot Combo Launched in October 14 in Brussels region (c. 20% of Belgian households)

16 Our successful and focused strategy in action Generate continued productivity gains Continue to focus on core mail business Innovate/ grow within core competencies Value creation & rewarding of shareholders Keep stakeholders on board

17 We satisfy our customers through delivering high quality service 17 Distribution quality Percentage letters in D+1 95 Customer satisfaction Percent

18 bpost cares #1 on IPC Environmental Ranking Recognize experience 108 graduates Carbon Disclosure Project 90/100 Work accidents -17% vs. last year

19 Our successful and focused strategy in action Generate continued productivity gains Continue to focus on core mail business Innovate/ grow within core competencies Value creation & rewarding of shareholders Keep stakeholders on board

20 The trust of our shareholders increases 20 Stock price evolution % Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 bpost Bel-20 (re-indexed) Introduction in the Bel 20 & DJ Stoxx Europe 600

21 and we reward them with a dividend Dividend since the IPO % * Final gross DPS ( ) Interim gross DPS ( ) * Proposed final gross dividend per share

22 Financial Results Pierre Winand CFO

23 FY14 23 Summary of key financials million Reported Normalized 1 FY13 FY14 FY13 FY14 % Total operating income (revenues) 2, , , , % Operating expenses 1, , , , % EBITDA % Margin (%) 22.6% 23.2% 22.1% 23.2% EBIT % Margin (%) 18.4% 19.5% 18.0% 19.5% Profit before tax % Income tax expense Net profit % FCF % bpost S.A./N.V. net profit (BGAAP) % Net Debt/ (Net cash), at 31 Dec. (360.7) (486.2) (360.7) (486.2) 34.8% 2013: gain of 14.6m from sale of Certipost divisions 1 Normalized figures are neither audited nor have been subject to a limited review

24 FY14 24 Domestic mail underlying volume decline at -4.4% Total operating income (revenues), million FY13 1,551.3 Elections 4.6 Impact of May 2014 elections. Volume Underlying volume decline at -4.4%. Price/Mix 26.7 Overall price increase slightly above inflation (in line with the policy). FY14 1,

25 FY14 25 Continued solid growth of domestic and international parcels Total operating income (revenues), million FY13 comparable Domestic Parcels % volume growth in International Parcels 43.7 Continued growth from US and shipments from and to China. Special Logistics -3.6 Discontinuing of activities in distribution & warehousing. FY Defined as domestic and Belgian in- and outbound

26 FY14 26 VAS and International mail performed well, partly offset by Banking & Financial Normalized 1 total operating income (revenues), million FY13 comparable International Mail 4.4 VAS 6.0 Banking & Financial -1.8 Others FY Excluding one-off settlements ( -5.7m), strong underlying performance in part supported by positive FX impacts. Good contribution of solutions (a.o. European license plates, Car Registration Cards, digital printing of magazines). Mainly driven by lower volumes of financial transactions managed on behalf of the Belgian State and lower service fee paid by bpost bank in part compensated by prepaid card sales. Higher assets under management offset by lower transformation margin and lower insurance production Normalized figures are neither audited nor have been subject to a limited review

27 FY14 27 Strong cost discipline taking into account the evolution of international activities. Operating expenses excl. depreciation and amortization, million FY13 comparable 1,901.3 Payroll & Interim Transport costs 38.2 Other SG&A Other costs -5.3 Average FTE reduction of 974 FTE ( -45.8m). Positive mix impact of -1.3m offset by negative price effect of +12.9m (merit increases, promotions, CLA impact and other premiums). Other effects ( +12.0m). In line with the evolution of international activities. FX impact of +2.7m and terminal dues one-offs relating to last year ( +1.5m). Decrease in publicity costs, 3 rd party costs, energy delivery, rent costs and other goods. FY14 1,892.7 Decrease in provisions ( -7.0m) and material costs, partly offset by the increase in other operating charges. -8.6

28 FY14 28 Operating free cash flow 1 of m in 2014 million million FY13 FY14 Delta Cash flow from operating activities Cash flow from investing activities Operating free cash flow Financing activities Net cash movement Capex m from improved results of operating activities +86.8m from positive evolution of the working capital due to: +37.4m relating to LY payment of competition claim fine +18.4m from earlier settlement of terminal dues by another postal operator +14.2m from improvement in payments by State entities +5.0m from the access fee paid by a partner in financial services 6.0m advance LY for Gout acquisition which was utilized this year -11.8m from higher capex -5.5m from lower proceeds sale of buildings -9.1m from newly acquired subsidiaries absence of LY s impacts of: capital increase bpost bank ( +37.5m) sale of Certipost ( -15.1m) purchase MSI shares ( +6.8m) 1 Operating free cash flow = cash flow from operating activities + cash flow from investing activities, excludes the impact of the 2013 repayment of prior compensation, following the 2012 EU ruling and deposits received from 3rd parties. 2 Financing activities includes the impact of the 2013 repayment of prior compensation and deposits received from 3rd parties.

29 FY14 29 Strong balance sheet structure million Assets Equity and liabilities Cash & cash equivalents Other assets Investments in associates 1, , Interest-bearing loans & borrowings Provisions Trade & other payables 1, , Trade & other receivables Inventories Employee benefits PPE & intangible assets Total equity Dec 31, 2013 Dec 31, 2014 Dec 31, 2013 Dec 31, 2014

30 FY14 30 Summary of key financials BGAAP million Reported FY13 FY14 % Total operating income (revenues) 2, , % Operating expenses 1, , % EBIT % Margin (%) 17.9% 18.9% Profit before tax % Income tax expense % bpost S.A./N.V. net profit (BGAAP) %

31 FY14 31 Final dividend of 0.22/share gross will be proposed to reach a total dividend payment of 1.26/share gross Based on the communicated dividend policy, taking into account the interim dividend paid and subject to Shareholders meeting approval Interim dividend paid in December 2014 (, gross per share) EUR 1.04 Final dividend payment (proposed) (, gross per share) EUR 0.22 Total proposed dividend for 2014 EUR 1.26 Dividend bpost S.A./N.V. net profit November to December 2014 (BGAAP) EUR 52.1m Pay-out ratio x 85% Proposed final dividend EUR 44.3m Dividend payment, gross per share EUR 0.22 Profit to be appropriated Transfer to the reserves Profit to be carried forward Dividends FY14 319,096, EUR 0.00 EUR 67,095, EUR 252,001, EUR

32 1Q15 32 Highlights of 1Q15 Revenues down 1.6% strong parcels performance offset by softness in mail and lower SGEI compensation Sharper volume decline of domestic mail weakness in advertising mail sales and ongoing e-substitution 616.6m -5.3% Strong growth in parcels solid domestic parcels volume growth supported by e-tailers and C2C growth; negative price mix effect of -3.7% solid international parcels growth from core business (from US and China), decline in shipments to China Cost savings continued to deliver strongly costs (excl. transport) down average FTE reduction of 681 for the quarter +10.2% m m EBITDA stable despite reduction in SGEI compensation 172.7m BGAAP net profit of bpost SA/NV stable Outlook maintained 87.3m

33 Looking into 2015 Koen Van Gerven CEO

34 Looking into Outlook for 2015 After a very strong 2014 which allowed us to report historically high numbers, we will be facing some headwind in 2015: We expect mail volumes to remain under substantial pressure from e-substitution. As a consequence we plan for mail a volume decline of over -5%. This has been confirmed by a relatively soft start of the year in mail. The compensation for the SGEI s (management contract) will be 16.5m lower than in 2014 as the government has decided to reduce the compensation above and beyond the already lower contractual cap. Parcels to China (milk powder) are no longer growing and could be declining. The planned productivity improvements as per the Vision 2020 planning are at the very low end of our 800 to 1,200 FTE/year range. On the positive side, we still expect mid single digit growth in domestic parcels in spite of the intensification of competition. We also expect continued growth in the US and Asia parcels segment. On balance, our ambition is to hold our recurring EBIT(DA) at the high level achieved in 2014 thanks to the partial effects of the Alpha plan and a continued focus on costs. Reported EBIT will be affected by the Alpha restructuring cost. Our ambition is to achieve the same level of dividend payment. Cash generation should follow normal seasonality and net capex is expected at around 90m. Working capital will be negatively affected by the favorable phasing on terminal dues payment in 2014 and tax payments relating to 2013.

35 Second half of 2015 Press tenders Management contract e.g. pensions, payments,..

36 13 May 2015 Shareholders meeting 2015