I nterim financial report fourth quarter 2 0 1 4 I nvestor - - PowerPoint PPT Presentation

I nterim financial report fourth quarter 2 0 1 4 I nvestor presentation

Koen Van Gerven, CEO Pierre W inand, CFO

Brussels – March, 1 7 th 2 0 1 5

2

I nvestor presentation - I nterim financial report 4 Q1 4

Disclaim er

This presentation is based on information published by bpost in its Fourth Quarter 2014 Interim Financial Report and Financial Report 2014, made available on March, 16th at 5.45pm CET on www.bpost.be/ir . This information forms regulated information as defined in the Royal Decree of 14 November 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.

More on w w w .bpost.be/ ir

0 6 .0 5 .2 0 1 5

( 1 7 :4 5 CET) Quarterly results 1Q15

1 3 .0 5 .2 0 1 5

Ordinary General Meeting of Shareholders

1 8 .0 5 .2 0 1 5

Ex-dividend date

2 0 .0 5 .2 0 1 5

Payment date of the dividend

Financial Calendar

1 as defined among others under the U.S. Private Securities Litigation Reform Act of 1995

0 8 .1 2 .2 0 1 5

Ex-dividend date (interim dividend)

1 0 .1 2 .2 0 1 5

Payment date of the interim dividend

0 6 .0 8 .2 0 1 5

( 1 7 :4 5 CET) Quarterly results 2Q15

0 5 .1 1 .2 0 1 5

( 1 7 :4 5 CET) Quarterly results 3Q15

0 3 .1 2 .2 0 1 5

( 1 7 :4 5 CET) Results first 10 months 2015

3

Highlights of 4 Q1 4 – Expectations exceeded

4Q14

Volum e decline of dom estic m ail better than previous 3 quarters

• improved advertising and transactional mail, but still impacted by

e-substitution and cost cutting

Cost savings w ell on track

• costs (excl. one-offs, phasing and transport) down organically
• average FTE reduction of 664 for the quarter and 974 for the full year

Strong grow th in parcels

• solid domestic parcels volume growth helped by particularly strong

December month at + 15.6% ; but negative mix effect of -2.2% for the first time

• rganic international parcels growth in line with 3Q14, shipments to

China slowing down

• 3 .7 %

+ 7 .1 % + € 1 0 .9 m

• € 9 .9 m

EBI TDA significantly up ( € + 9 .5 m )

€ 1 3 1 .0 m € 1 .2 6 gross

Proposed total dividend per share up 1 1 .5 %

€ 1.04 already paid in December 2014 and € 0.22 to be proposed at Annual General Meeting

Revenues up 2 .2 % ( + 1 .7 % organically)

• partially helped by higher building sales (EUR + 3.8m)

€ 6 5 5 .3 m

4

Highlights FY1 4

4Q14

Total operating incom e ( Revenues)

FY14: € 2 ,4 6 4 .7 m (+ 1.5% )

EBI TDA EBI T Dom estic Mail Parcels Productivity Dividend

Norm alized1, € m illion

1 Normalized figures are neither audited nor have been subject to a limited review

FY14: € 5 7 2 .0 m (+ 6.6% ) FY14: € 4 8 0 .2 m (+ 10.1% ) FY14:

• 4 .4 % (underlying volume)

FY14: + 7 .0 % (domestic volumes) FY14:

• 9 7 4 FTE

Total dividend of € 1.26 per share gross proposed

• Interim dividend already paid: € 1.04
• Final dividend of € 0.22 based on net profits of

Nov and Dec at 85% payout. Topic Results Last outlook for 2 0 1 4 Stable or slightly above LY Stable for 4Q14 and keep advance booked in first 9 months ~ -5% > 5.2% Low end of 800 to 1,200 range Higher than LY

5

4 Q1 4 EBI TDA grew solidly thanks to Parcels, dom estic m ail volum e decline better than previous quarters at -3 .7 % and costs under control taking into account grow th of transport costs

4Q14 + 3.7 + 0.8 + 11.7

Domestic Mail

• 5 .1

Scope

+ 0 .4

EBI TDA 4 Q1 3

+ 1 2 1 .6 + 1 3 1 .0

Parcels EBI TDA 4 Q1 4 Costs

• 2 .0

Corporate Additional sources of revenues

100% acquisition of Gout, BEurope, Ecom and Starbase by Landmark Global I nc. Total operating income (revenues)

1 Normalized figures are neither audited nor have been subject to a limited review

€ + 9 .1 m / + 7 .5 % Norm alized1, € m illion

Of which building sales € + 3.8m. I ncluding increase of one-

• ffs and phasing by

€ 0.9m and transport costs by € 11.1m

6

Scope elem ents affecting results: sm all bolt-on acquisitions relating to international parcels activities

4Q14

Acquisition of Gout I nternational BV and BEurope Acquisition of Ecom Acquisition of Starbase

Topic Description High-level im pact

Changes in scope

• Additional operating income of

€ 2.1m and additional operating expenses of € 1.9m in 4Q14, bringing FY contributions to € 7.1m and € 6.0m respectively.

• Additional operating income of

€ 0.8m and additional operating expenses of € 0.7m in 4Q14, bringing FY contributions to € 2.1m and € 2.4m respectively.

• Additional operating income of

€ 0.3m and additional operating expenses of € 0.3m in 4Q14, bringing FY contributions to € 1.1m and € 1.1m respectively.

• In Jan. 2014, Landmark Global Inc.

acquired 100% 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 100% of

the shares of Ecom Ltd in February 2014

• Import services for goods in UK
• Landmark Global Inc. acquired 100% of

the shares of Starbase in February 2014 (based in US)

• Import services for goods in the US

7

Sum m ary of key financials 4 Q1 4

4Q14

1 Normalized figures are neither audited nor have been subject to a limited review

€ m illion 4Q13 4Q14 4Q13 4Q14 % ∆ Tot al operat ing income (revenues) 640.9 655.3 640.9 655.3 2.2% Operat ing expenses 519.4 524.3 519.4 524.3 0.9% EBI TDA 121.6 131.0 121.6 131.0 7.8% Margin (% ) 19.0% 20.0% 19.0% 20.0% EBI T 86.8 102.8 86.8 102.8 18.4% Margin (% ) 13.5% 15.7% 13.5% 15.7% Profit before tax 85.5 85.3 85.5 85.3

• 0.2%

I ncome t ax expense 32.8 34.7 32.8 34.7 Net profit 52.7 50.7 52.7 50.7

• 3.8%

FCF 12.6 48.4 12.5 48.4 286.8% bpost S.A./ N.V. net profit ( BGAAP) 72.7 78.8 72.7 78.8 8.5% Net Debt/ ( Net cash) , at 31 December ( 360.7) ( 486.2) ( 360.7) ( 486.2) 34.8% Report ed Normalized1

8

Total operating incom e ( revenues) of € 6 5 5 .3 m in 4 Q1 4 , increase of € 1 1 .1 m on an organic basis

4Q14

1 Normalized figures are neither audited nor have been subject to a limited review

² Scope including Gout I nternational BV, BEurope, Ecom and Starbase ³ Defined as domestic and Belgian in- and outbound

Norm alized1, € m illion 4Q13 Scope 2 Organic 4Q14 % Org Transact ional mail 259.6

• 0.4

259.2

• 0.2%

Advert ising mail 74.0

• 2.4

71.5

• 3.3%

Press 80.7

• 2.3

78.5

• 2.8%

Domest ic parcels3 39.0

• 1.9

40.9 4.9% I nt ernat ional parcels 32.9 2.4 10.9 46.3 33.0% Special logist ics 4.1

• 1.1

2.9

• 27.3%

I nt ernat ional mail 55.2

• 0.2

55.3 0.3% Value added services 22.9

• 0.8

23.7 3.6% Banking and financial 52.8

• 0.2

52.6

• 0.5%

Ot hers 25.6 0.8 0.1 26.5 0.4% Corporate

• 5.8
• 3.7
• 2.1
• 63.5%

640.9 3.2 11.1 655.3 1.7% Domestic mail Parcels Additional sources

• f revenues

TOTAL

9

Dom estic Mail underlying volum e decline at -3 .7 % as a result of low er volum e decline both in transactional m ail and advertising m ail

4Q14 6.9 4 0 9 .2

• 5 .1

4 Q1 4 Price/ Mix Volume

• 1 2 .8

Working day impact 0 .9 4 Q1 3 4 1 4 .3

Norm alized1 total operating incom e ( revenues) , € m illion

1 Normalized figures are neither audited nor have been subject to a limited review 2 2Q14 was impacted by elections. I n 3Q14 we had 1 business working day less and in 4Q14 we had 1 business working day more compared to 2013. I n terms of

working days for 2015, 1Q15, 2Q15 and 4Q15 will be equal to same quarters of 2014. I n 3Q15 we will have 1 business working day more.

• 1 business working day more.
• Underlying volum e decline at -3 .7 % from both lower

volume decline in Transactional and Advertising mail.

• Transactional m ail remained affected by e-substitution

and cost reduction measures although no new aggressive measures were implemented by customers.

• Advertising m ail trend improved in part as a result of

stronger performance from some food retailers and slower decline of catalogue sellers.

1Q14 2Q14 3Q14 4Q14 YTD14 1Q14 2Q14 3Q14 4Q14 YTD14 Transact ional mail -5.3%

• 5.2%
• 5.1%
• 3.1%
• 4.7%
• 5.3%
• 5.9%
• 4.7%
• 4.2%
• 5.0%

Advert ising mail

• 2.7%

2.0%

• 3.7%
• 3.4%
• 1.9%
• 2.7%
• 3.6%
• 3.7%
• 2.1%
• 3.0%

Press

• 3.2%
• 2.9%
• 2.5%
• 2.6%
• 2.8%
• 3.2%
• 2.9%
• 2.5%
• 2.6%
• 2.8%

Domestic Mail

• 4.6%
• 3.6%
• 4.6%
• 3.1%
• 3.9%
• 4.6%
• 5.1%
• 4.3%
• 3.7%
• 4.4%

Report ed Underlying²

10

Continued grow th of international parcels, solid volum e perform ance in dom estic parcels

4Q14

Norm alized1 total operating incom e ( revenues) , € m illion

1 Normalized figures are neither audited nor have been subject to a limited review 2

Defined as domestic and Belgian in- and outbound

9 0 .1 + 1 1 .7 4 Q1 4 Special Logistics

• 1 .1

International Parcels 1 0 .9 Domestic Parcels 2 1 .9 4 Q1 3 before

• rganic evolution

7 8 .4 7 6 .0 4 Q1 3 2 .4 Scope

• Solid volum e grow th in 4 Q1 4 of 7 .1 % driven by

e-commerce growth, despite weak November month (especially fashion e-tailers), the continued decline of catalogue sellers and weak C2C parcel sales.

• Negative mix effect of -2.2%
• Growth of domestic volumes in Decem ber w as

particularly strong at 1 5 .6 % (above LY December performance of 12.9% ).

• Continued grow th on lanes from US (€ + 7.7m) in part

positively impacted by a stronger $/ € rate (€ + 2.5m); from China (€ + 2.2m) in line with previous quarters and growth of shipments to China slowing down (€ + 0.5m).

• December results in line w ith run-rate post

restructuring.

11

Additional sources of revenues holding w ell

4Q14

Norm alized1 total operating incom e ( revenues) , € m illion

1 Normalized figures are neither audited nor have been subject to a limited review

0.8 0.8 1 5 6 .5 1 5 8 .1 + 0 .8 4 Q1 3 4 Q1 4 Others 0 .1 Banking & Financial

• 0 .2

VAS International Mail 0 .2 4 Q1 3 before

• rganic evolution

1 5 7 .3 Scope

• Excluding lower one-off settlements relating to last year

(€ -0.7m) and positive FX impact (€ + 1.8m), international m ail sales w ere slightly dow n.

• Mainly less service fee (€ -0.4m) paid as a result of

cost optimization of activities performed on behalf of bpost bank and lower volumes of financial transactions managed on behalf of the Belgian state while prepaid cards continued to grow (€ + 0.3m).

• Higher assets under management offset by lower

transformation margin and lower insurance production.

• Contribution of solutions thanks to European license

plates.

12

Costs rem ained w ell under control and w ere dow n € 9 .9 m on an underlying basis ( excl. one-offs, phasing and transport)

4Q14

Operating expenses excl. depreciation and am ortization, Norm alized1, € m illion

1 Normalized figures are neither audited nor have been subject to a limited review

3.5 5 2 4 .3

• 9 .9

4 Q1 4 Other costs

• 0 .3

Other SG&A Payroll & Interim

• 1 3 .1

4 Q1 3 excl. one-off, phasing & transport 5 3 4 .2 Transport costs 1 1 .1 One-off & phasing 0 .9 4 Q1 3 before

• rganic evolution

5 2 2 .2 Scope 2 .9 4 Q1 3 5 1 9 .4

• Increase in consultancy costs, 3rd party costs,

advertising costs (parcels) and other services, partly compensated by the decrease in maintenance costs and energy delivery.

• Total FTE reduction of 6 6 4 FTE (€-9.1m), partly

supported by a hiring freeze since the start of the Alpha analysis (48 FTE).

• Positive m ix im pact of € -0.8m mainly thanks to the

recruitment of auxiliary postmen as well as other factors accounting for € -3.2m.

• I ncrease in transport costs relating to the evolution
• f international activities, including FX impact (€ + 3.3m)
• Terminal dues one-offs (€ + 4.1m) and phasing impact

(€ + 2.7m) both relating to last year in transport costs.

• Phasing and one-off effects relating mainly to payroll

restructuring charges (€ + 6.3m) and employee benefits provision movements (€ -8.0m).

• Decrease in provisions (€ -4.2m) in other costs.

13

Operating free cash flow 1 of € + 4 8 .4 m in 4 Q1 4

4Q14

• Lower capital expenditure in 4Q14 (€ + 3.2m)
• Higher proceeds sale of buildings in 4Q14 (€ + 7.3m) due to the sale of a large

property

• Lower results of operating activities (€ -9.2m) mainly due to higher prepayment

income taxes in 4Q14 (€ -10.0m)

• Positive evolution of the working capital vs. 4Q13 (€ + 34.6m). Working capital

was positively influenced by terminal dues mainly related to the earlier settlement of another postal operator (which will negatively impact 2015), and an access fee (€ + 5.0m) paid by a partner in financial services

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.

€ m illion

• Interim dividend payment is € -22.0m higher than last year

€ million 4Q13 4Q14 Delta Cash flow from operat ing act ivit ies + 46.4 + 71.8 + 25.4 Cash flow from invest ing act ivit ies

• 33.9
• 23.4

+ 10.5 Operating free cash flow 1 + 12.5 + 48.4 + 35.9 Financing act ivit ies

• 195.3
• 217.7
• 22.4

Net cash movement

• 182.8
• 169.3

+ 13.5 Capex + 37.2 + 34.0

• 3.2

14

Final dividend of € 0 .2 2 / share gross w ill be proposed to reach a total dividend paym ent of € 1 .2 6 / share gross

4Q14

Based on the communicated dividend policy, taking into account the interim dividend paid and subject to Board and Shareholders’ meeting approval Dividend bpost S.A./ N.V. net profits after tax November to December 2014 (BGAAP) EUR 52.1m Pay-out ratio x 85% Proposed final dividend EUR 44.3m Dividend paym ent, € gross per share EUR 0 .2 2 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 2 0 1 4 EUR 1 .2 6

15

Strong balance sheet structure

4Q14

€ m illion PPE & intangible assets Inventories Trade & other receivables Investments in associates Other assets Cash & cash equivalents Dec 31, 2014 2 ,1 2 1 .8 6 5 5 .2 1 2 .5 4 0 0 .8 4 1 6 .5 7 4 .4 5 6 2 .3 Dec 31, 2013 1 ,9 2 9 .2 6 5 9 .2 9 .2 4 0 2 .4 3 4 1 .3 6 8 .7 4 4 8 .2 86.9 Employee benefits Total equity Trade & other payables Provisions Interest-bearing loans & borrowings Dec 31, 2014 2 ,1 2 1 .8 6 8 1 .4 3 6 8 .6 9 3 1 .4 6 4 .8 7 5 .6 Dec 31, 2013 1 ,9 2 9 .2 5 7 6 .9 3 4 5 .1 8 5 7 .7 6 2 .6 Assets Equity and liabilities

16

Outlook for 2 0 1 5

4Q14

• After a very strong 2014 which allowed us to report historically high numbers, we will be facing some

headwind in 2015:

• We expect m ail volum es 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 com pensation for the SGEI ’s (management contract) will be € 1 6 .5 m low er 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 grow ing and could be declining.
• The planned productivity im provem ents as per the Vision 2020 planning are at the very low end of
• ur 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 grow th in the US and Asia parcels segment.

• On balance, our ambition is to hold our recurring EBI T( 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.

Appendix: Full year 2 0 1 4 details

Brussels – March, 1 7 th 2 0 1 5

18

FY1 4 EBI TDA grew solidly thanks to solid revenue grow th both in parcels and additional sources of revenues along w ith continued cost savings

FY14 + 8.6 + 8.0 + 49.6

Domestic Mail

• 2 8 .3

Scope

+ 0 .8

EBI TDA FY1 3

+ 5 3 6 .9

EBI TDA FY1 4

+ 5 7 2 .0

Costs Corporate

• 3 .5

Additional sources of revenues Parcels

100% acquisition of Gout, BEurope, Ecom and Starbase by Landmark Global I nc. Of which building sales € -2.3m. Total operating income (revenues)

1 Normalized figures are neither audited nor have been subject to a limited review

€ + 3 4 .4 m / + 6 .4 % Norm alized1, € m illion

I ncluding increase of transport costs by € 38.2m

19

Sum m ary of key financials FY1 4

FY14

1 Normalized figures are neither audited nor have been subject to a limited review

€ m illion FY13 FY14 FY13 FY14 % ∆ Tot al operat ing income (revenues) 2,443.2 2,464.7 2,428.6 2,464.7 1.5% Operat ing expenses 1,891.7 1,892.6 1,891.7 1,892.6 0.0% EBI TDA 551.4 572.0 536.9 572.0 6.6% Margin (% ) 22.6% 23.2% 22.1% 23.2% EBI T 450.7 480.2 436.1 480.2 10.1% Margin (% ) 18.4% 19.5% 18.0% 19.5% Profit before tax 456.8 454.1 442.2 454.1 2.7% I ncome t ax expense 168.9 158.6 168.9 158.6 Net profit 287.9 295.5 273.3 295.5 8.1% FCF 125.9 373.3 249.0 373.5 50.0% bpost S.A./ N.V. net profit ( BGAAP) 248.2 296.9 248.2 296.9 19.6% Net Debt/ ( Net cash) , at 31 Dec. ( 360.7) ( 486.2) ( 360.7) ( 486.2) 34.8% Report ed Normalized1

2 0 1 3 : gain of € 1 4 .6 m from sale of Certipost divisions

20

Total operating incom e ( revenues) of € 2 ,4 6 4 .7 m in FY1 4 , increase of € 2 5 .8 m on an organic basis

FY14

1 Normalized figures are neither audited nor have been subject to a limited review

² Scope including Gout I nternational BV, BEurope, Ecom and Starbase ³ Defined as domestic and Belgian in- and outbound

Norm alized1, € m illion FY13 Scope 2 Organic FY14 % Org Transact ional mail 961.3

• 18.0

943.2

• 1.9%

Advert ising mail 275.9

• 4.5

271.4

• 1.6%

Press 314.1

• 5.8

308.4

• 1.8%

Domest ic parcels3 141.9

• 9.4

151.3 6.7% I nt ernat ional parcels 91.5 8.1 43.7 143.3 47.7% Special logist ics 16.2

• 3.6

12.6

• 22.0%

I nt ernat ional mail 199.3 0.0 4.4 203.7 2.2% Value added services 89.4

• 6.0

95.4 6.7% Banking and financial 209.2

• 1.8

207.5

• 0.8%

Ot hers 104.4 2.3

• 0.6

106.0

• 0.6%

Corporate 25.5

• 3.5

21.9

• 13.9%

2,428.6 10.3 25.8 2,464.7 1.1% Domestic mail Parcels Additional sources

• f revenues

TOTAL

21

Dom estic m ail underlying volum e decline at -4 .4 %

FY14 26.7 Price/ Mix

• 2 8 .3

FY1 4 1 ,5 2 3 .0 Volume

• 5 9 .5

Elections & working day 4 .6 FY1 3 1 ,5 5 1 .3

Norm alized1 total operating incom e ( revenues) , € m illion

1 Normalized figures are neither audited nor have been subject to a limited review 2 2Q14 was impacted by elections. I n 3Q14 we had 1 business working day less and in 4Q14 we had 1 business working day more compared to 2013. I n terms of

working days for 2015, 1Q15, 2Q15 and 4Q15 will be equal to same quarters of 2014. I n 3Q15 we will have 1 business working day more.

• In 2014, elections’ contribution amounted to € + 4.6m.
• Underlying volum e decline at -4 .4 % .
• Transactional m ail affected by e-substitution (with some

large customers implementing aggressive measures) and cost

• cutting. Some one-off mailings and specific actions from

customers impacted the 2H volume trend positively.

• Advertising m ail benefiting from food retailers despite

continued decline of catalogue sellers.

1Q14 2Q14 3Q14 4Q14 YTD14 1Q14 2Q14 3Q14 4Q14 YTD14 Transact ional mail -5.3%

• 5.2%
• 5.1%
• 3.1%
• 4.7%
• 5.3%
• 5.9%
• 4.7%
• 4.2%
• 5.0%

Advert ising mail

• 2.7%

2.0%

• 3.7%
• 3.4%
• 1.9%
• 2.7%
• 3.6%
• 3.7%
• 2.1%
• 3.0%

Press

• 3.2%
• 2.9%
• 2.5%
• 2.6%
• 2.8%
• 3.2%
• 2.9%
• 2.5%
• 2.6%
• 2.8%

Domestic Mail

• 4.6%
• 3.6%
• 4.6%
• 3.1%
• 3.9%
• 4.6%
• 5.1%
• 4.3%
• 3.7%
• 4.4%

Report ed Underlying²

22

Continued solid grow th of dom estic and international parcels

FY14

Norm alized1 total operating incom e ( revenues) , € m illion

1 Normalized figures are neither audited nor have been subject to a limited review 2

Defined as domestic and Belgian in- and outbound

43.7 9.4 3 0 7 .2 FY1 3 before

• rganic evolution

2 5 7 .7 Scope 8 .1 FY1 3 2 4 9 .6 International Parcels

• 3 .6

Special Logistics FY1 4 + 4 9 .6 Domestic Parcels 2

• Continued solid volum e grow th of dom estic parcels

reaching 7 .0 % despite a continued decline of catalogue sellers and weak C2C parcel sales.

• Turnaround of activities im plem ented: revenues

decreased as a result of discontinuing the activities in distribution & warehousing.

• Continued grow th from US (€ + 22.7m), from China

(€ + 8.6m) and shipments to China (€ + 8.3m).

23

VAS and I nternational m ail perform ed w ell, partly offset by Banking & Financial

FY14

Norm alized1 total operating incom e ( revenues) , € m illion

1 Normalized figures are neither audited nor have been subject to a limited review

4.4 6.0 2.3 Banking & Financial

• 0 .6

Others FY1 4 + 8 .0 6 1 2 .5

• 1 .8

VAS International Mail FY1 3 before

• rganic evolution

6 0 4 .5 Scope FY1 3 6 0 2 .2

• Excluding one-off settlements (€ -5.7m), strong

underlying I nternational m ail perform ance in part supported by positive FX impacts.

• Mainly driven by low er volum es of financial

transactions managed on behalf of the Belgian State and low er 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.

• Contribution of solutions thanks to European license

plates, Car Registration Cards and digital printing of magazines.

24

Strong cost discipline taking into account the evolution of international activities.

FY14

Operating expenses excl. depreciation and am ortization, Norm alized1, € m illion

1 Normalized figures are neither audited nor have been subject to a limited review

38.2 9.5 FY1 4

• 5 .3

Other costs 1 ,8 9 2 .6 Other SG&A Scope 1 ,8 9 1 .7 FY1 3 1 ,9 0 1 .3 FY1 3 before

• rganic evolution
• 2 6 .9

Payroll & Interim Transport costs

• 1 4 .8
• 8 .6
• FTE reduction of 9 7 4 FTE (€ -45.8m).
• Positive m ix im pact of € -1.3m thanks to the

recruitment of auxiliary postmen partly offset by the use

• f more interims.
• Negative price effect of € + 12.9m, mainly due to merit

increases, promotions, CLA impact and other premiums.

• Other effects relating mainly to restructuring charges

(€ + 10.5m), less favourable evolution of the rest arrears (€ + 3.2m) and higher accruals of the 5% profit share (€ + 2.4m) partly offset by employee benefits provision movements (€ -4.1m) and other.

• Increase in transport costs relating to the evolution of

international activities while being impacted by FX (€ + 2.7m) and terminal dues one-offs relating to last year (€ + 1.5m).

• Decrease in publicity costs, 3rd party costs, energy

delivery, rent costs and other goods.

• Decrease in provisions (€ -7.0m) and material costs,

partly offset by the increase in other operating charges.

25

Operating free cash flow 1 of € + 3 7 3 .5 m in 2 0 1 4

FY14

• Higher capital expenditure in 2014 (€ -11.8m) mainly related to extensions of the sorting

centres and the installation of new sorting machines

• Lower proceeds sale of buildings (€ -5.5m)
• Newly acquired subsidiaries in 2014 (€ -9.1m) while LY was impacted by capital increase bpost

bank (€ + 37.5m), sale of Certipost (€-15.1m) and purchase MSI shares (€ + 6.8m)

• Improved results of operating activities (€ + 35.1m)
• Positive evolution of the working capital vs. LY (€ + 86.8m). Besides LY payment related to the

competition claim fine (€ + 37.4m), working capital was positively influenced by terminal dues (€ + 18.4m), mainly related to the earlier settlement of another postal operator, improvement in payments by State entities (€ + 14.2m), the access fee paid by a partner in financial services (€ + 5.0m) and LY advance for Gout acquisition which was utilized this year (net impact € 6.0m)

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.

€ m illion

• LY repayment of SGEI overcompensation (€ + 123.1m) and decapitalisation/ exceptional

dividends (€ + 198.0m)

• In 2014, higher dividend pay-out (€ -60.7m – impact of interim dividend, dividend to

shareholders and minority interests together)

• Higher payments related to borrowings and financing lease liabilities in 2014 (€ -5.8m)

€ million FY13 FY14 Delta Cash flow from operat ing act ivit ies + 329.7 + 451.7 + 122.0 Cash flow from invest ing act ivit ies

• 80.7
• 78.2

+ 2.5 Operating free cash flow 1 + 249.0 + 373.5 + 124.5 Financing act ivit ies2

• 513.8
• 259.5

+ 254.3 Net cash movement

• 264.7

+ 114.0 + 378.7 Capex + 79.2 + 90.9 + 11.8

26

Key contacts

Pierre W inand

CFO, Service Operations and I CT

• Em ail: pierre.winand@bpost.be
• Direct: + 32 (0)2 276 22 35
• Mobile: + 32 (0) 494 566 348
• Address: bpost, Centre Monnaie, 1000 Brussels, Belgium

Paul Vanw am beke

Director I nvestor Relations

• Em ail: paul.vanwambeke@bpost.be
• Direct: + 32 (0)2 276 28 22
• Mobile: + 32 (0) 497 591 335
• Address: bpost, Centre Monnaie, 1000 Brussels, Belgium

Saskia Dheedene

Manager I nvestor Relations

• Em ail: saskia.dheedene@bpost.be
• Direct: + 32 (0)2 276 76 43
• Mobile: + 32 (0) 477 922 343
• Address: bpost, Centre Monnaie, 1000 Brussels, Belgium