Slides
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Simplifying, connecting and advancing in a dynamic world The Hague – 6 May 2025 1 Q1 2025 results
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PostNL Q1 2025 results 2 Published by: PostNL NV Waldorpstraat 3 2521 CA The Hague The Netherlands Additional information Additional information is available at www.postnl.nl. Elements of this presentation contain or may contain inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation. Note that the numbers presented in this presentation (tables and result explanations) may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures due to rounding. Warning about forward-looking statements Some statements in this presentation are “forward-looking statements”. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside of our control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industries in which we operate and management's beliefs and assumptions about possible future events. You are cautioned not to put undue reliance on these forward-looking statements, which only speak as of the date of this presentation and are neither predictions nor guarantees of possible future events or circumstances. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as may be required under applicable securities law. Use of non-GAAP information In presenting and discussing the PostNL Group operating results, management uses certain non- GAAP financial measures. These non-GAAP financial measures should not be viewed in isolation as alternatives to the equivalent IFRS measures and should be used in conjunction with the most directly comparable IFRS measures. Non-GAAP financial measures do not have standardised meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The main non-GAAP key financial performance indicator is normalised EBIT. Normalised EBIT is derived from the IFRS- based performance measure operating income adjusted for the impact of project costs and incidentals.
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Parcels • Focus on strategic initiatives as announced in February, progress according to plan • First positive signs from targeted yield measures visible • Further efficiency improvements resulted in cost savings Mail in the Netherlands • Successful transition majority of business mail to standard delivery framework of D+2 • Current postal regulation limits further adjustments in business model; measures, such as stamp increases, inevitable • We encourage government to take next steps in a parliamentary debate before summer; results ACM study expected in May Key takeaways Q1 2025 PostNL Q1 2025 results 3 FY 2025 outlook unchanged Highlights • Revenue Parcels up 3.5%, with volume growth of 2.0% and further client concentration • Mail volumes down 6.9%, mainly due to ongoing substitution • Continued high organic cost increase of €31m, mainly labour- related, fully offset by tariff increases • 30% emission-free last-mile delivery (Q1 2024: 26%)
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Q1 2025 performance 4 Normalised EBIT at €(15)m, in line with expectations Key financial metrics (in € million) Q1 2024 Q1 2025 Revenue 765 782 Normalised EBIT (9) (15) Free cash flow (7) (33) Normalised comprehensive income (8) (10) PostNL Q1 2025 results Non-financial highlights • Growing adoption out-of-home delivery • 7% of app users with activated preferred delivery options choose for APL • Ecovadis: platinum award • 30% share of emission-free last-mile delivery • First ‘roll cage tilters’ operational • 9.2m actively used unique PostNL accounts • NPS: average #1 position in relevant markets
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Parcels 5 Volume • Overall market share more or less stable • 2.0% volume growth • +19% volumes from international customers • -2.4% domestic volumes • Different phasing of working days in first week of year and timing of festive days Revenue • Revenue growth Parcels NL and BE driven by • volume growth • average price per parcel up €0.03 – tariff increases – partly offset by mix impact due to further client concentration • Cross-border activities continued positive trend, mainly in intra-European activities (Spring) Costs • Significant organic costs increase, mainly labour-related • Efficiency improvements (network optimisation and rationalisation services), also due to adaptive measures, cost savings of €7m 3.5% revenue growth and further client concentration Revenue €581m €561mQ1 2024 Q1 2025 in € million Q1 2024* Q1 2025 Parcels NL and BE 370 380 Spring 134 147 Logistics solutions and other services 70 69 Other / intercompany (13) (15) Parcels 561 581 Normalised EBIT €3m €5m Volumes 87m 86m +2.0% Revenue mix PostNL Q1 2025 results * Please refer to slide 18
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Parcels normalised EBIT bridge 6 5 3 7 Normalised EBIT Q1 2024 Revenue - volume Revenue - mix Volume-dependent costs Organic costs Revenue - price Other costs Other results Normalised EBIT Q1 2025 (13) (3) (15) 15 9 (2) (in € million) 2.0% volume growth Wage increases PostNL CLA, sector CLA, indexation for delivery partners and other inflationary pressure PostNL Q1 2025 results Unfavourable shift in product /customer mix, also within domestic volumes Mainly due to operational efficiency improvements (network optimisation and rationalisation services) following adaptive measures and strategic initiatives Targeted yield management and regular price increases Various other smaller items
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Mail in the Netherlands PostNL Q1 2025 results 7 Step-down of €10m in result mainly due to further volume decline Revenue €309m €318mQ1 2024 Q1 2025 Normalised EBIT €(18)m €(8)m Volumes 371m 399m -6.9% Volume • Volume decline of 6.9%, mainly due to substitution Revenue • Stamp prices • 4.6% increase as of 1 July 2024 • 6.1% increase as of 1 January 2025 • Majority business mail successfully migrated to ‘standard delivery D+2’ • Further shift to non-24 hour mail Costs • Increase in labour costs following CLAs for PostNL and mail deliverers • High sick leave rates in tight labour market • Cost savings of €7m based on further adjustments of processes in current business model Q1 2024 18% Q1 2025 7% Indicative volume split bulk mail 24-hour Non-24-hour including standard delivery D+2 9%
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6.9% volume decline Mail in the Netherlands normalised EBIT bridge 8 Normalised EBIT Q1 2024 Revenue - volume Revenue - mix Volume-dependent costs Organic costs Revenue - price Other costs Other results Normalised EBIT Q1 2025 (8) (15) (3) 2 (8) 13 1 0 (18) (in € million) Related to further shift to non-24-hour mail Cost savings (€7m) offset by additional labour costs and lower bilateral results PostNL Q1 2025 results Wage increases and other inflationary pressures Regular tariff increases and targeted yield management
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Cash flow 9 Anticipated phasing effects in working capital Normalised EBIT Depreciation & amortisation Capex Lease payments and related cash flow Change in working capital Change in provisions Disposals, reversal normalisations and other* Interest paid and income tax Free cash flow (9) 46 (26) (19) (7) 9 3 (3) (7) (15) 48 (24) (20) (25) 4 3 (3) (33) Includes anticipated phasing effects with Q4 2024, mainly related to payments due Lower capex, FY assumption > 2024 Q1 2024 Q1 2025 PostNL Q1 2025 results (in € million)
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Balance sheet 10 Balance sheet Adjusted net debt at €509m (in € million) 31 Dec 2024 29 March 2025 31 Dec 2024 29 March 2025 Intangible fixed assets 414 413 Consolidated equity 202 192 Property, plant and equipment 467 460 Non-controlling interests 3 3 Right-of-use assets 281 276 Total equity 205 195 Other non-current assets 43 51 Long-term debt 596 597 Other current assets 462 467 Long-term lease liabilities 221 214 Cash 453 420 Other non-current liabilities 165 166 Assets classified as held for sale 1 1 Short-term debt 10 10 Short-term lease liabilities 78 79 Other current liabilities 845 826 Total assets 2,120 2,086 Total equity & liabilities 2,120 2,086 (in € million) 31 Dec 2024 29 March 2025 Short- and long-term debt 674 674 Long-term interest-bearing assets (13) (12) Cash and cash equivalents (453) (420) Net debt 208 242 Pension liabilities/WGA 40 44 Lease liabilities (on balance) 299 293 Lease liabilities (off balance) 9 14 DTA on WGA and operational lease liabilities (81) (84) Adjusted net debt 474 509 Adjusted net debt PostNL Q1 2025 results
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Sequential development normalised EBIT in 2025 11 Q1 2025 result as anticipated Normalised EBIT skewed to Q4 Indicative only, in € million Overall • Working day distribution over the quarters slightly differs and impacts quarterly split • Impact pricing largest in Q4 Parcels • Impact announced yield measures expected as of Q2 Mail in the Netherlands • Impact from elections on volume development in Q2 Q1 Q2 Q3 Q4 (9) 18 (18) 62 (15) 2024 Outlook 2025 Q1 Q2 Q3 Q4 Phasing cost savings Indicative only, in € million Parcels Mail in the Netherlands Assumed cost savings • Parcels €40m - €50m • Mail in the Netherlands €40m - €45m • Phasing due to run-rate of different cost saving initiatives and partly volume-related 14
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Outlook 2025 unchanged 12 (in € million) 2024 2025 outlook Normalised EBIT 53 in line with 2024 Free cash flow 12 (10) - (50) Intention to pay dividend over 2025 • Outlook normalised EBIT in line with 2024, following balanced strategic decisions • Hold on to our aim to be properly financed, taking into consideration anticipated improvement in performance going forward and progress towards future-proof postal service • Normalised comprehensive income: development in reported lines expected to be more similar to 2023. Please refer to slide 21 • Capex assumed to be > 2024 due to investments in additional strategic initiatives (~€15m) • Acknowledging: • challenging external environment: - recent developments on global tariff increases: macroeconomic uncertainty and more volatility - too early for clear view on consequences e-commerce market, such as re-routing Asian volumes or slowdown GDP growth • pace of client concentration difficult to predict due to changing consumer behaviour
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Capital Markets Update 13 September 2025 2. Further details on adjusted strategy elements at Parcels 4. PostNL medium-term guidance 1. Strategic review based on evolving market dynamics 3. Progress on transition Mail in the Netherlands To remain your favourite deliverer Safeguarding long-term perspectives for our stakeholders Enhance customer value Accelerate Out-of-Home strategy Capture international growth Committed to intensify investments in health & well-being and sustainability Towards future-proof postal service
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Q&A
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15 Appendix 1. Results per segment 2. Reconciliation Parcels and Mail in the Netherlands following switch of real estate 3. Revenue mix Parcels 4. Full reconciliation of income statement and EBITDA per segment 5. Free cash flow per segment 6. Profit and normalised comprehensive income
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Results per segment 16 Revenue Normalised EBIT Margin Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Parcels 561 581 5 3 0.9% 0.6% Mail in the Netherlands 318 309 (8) (18) -2.5% -5.7% PostNL Other 63 62 (6) (1) Intercompany (177) (169) PostNL 765 782 (9) (15) -1.2% -2.0% (in € million)
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Real estate reported in segment Parcels 17 (in € million) Revenue Q1 2024 Q1 2024* Q2 2024 Q2 2024* Q3 2024 Q3 2024* Q4 2024 Q4 2024* FY 2024 FY 2024* Parcels 555 561 581 587 569 575 664 670 2,370 2,393 Mail in the Netherlands 324 318 324 318 295 289 395 388 1,338 1,313 PostNL Other 63 63 58 58 57 57 62 62 240 240 Other / intercompany (177) (177) (168) (168) (166) (166) (184) (184) (696) (694) PostNL 765 765 795 795 756 756 937 937 3,252 3,252 * Restated for change in segment reporting, all 2024 comparable figures have been restated: • Combine all real estate and organisational responsibilities in one segment • To be reported in Parcels as of 1 January 2025 (until 31 December 2024: Mail in the Netherlands) • Mail in the Netherlands only comprises mail and mail-related activities Normalised EBIT Parcels 2 5 15 18 3 6 31 36 49 65 Mail in the Netherlands (5) (8) 6 2 (19) (23) 38 32 19 3 PostNL other (6) (6) (2) (2) (1) (1) (6) (6) (16) (16) PostNL (9) (9) 18 18 (18) (18) 62 62 53 53
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Revenue mix Parcels 18 As of 2025 Q1 2024* Q1 2025 Q2 2024* Q2 2025 Q3 2024* Q3 2025 Q4 2024* Q4 2025 FY 2024* FY 2025 Parcels NL and BE 370 380 388 371 445 1,574 Spring 134 147 145 141 165 585 Logistics solutions and other 70 69 72 66 73 281 Other / intercompany (13) (15) (19) (3) (13) (48) Parcels 561 581 587 575 670 2,393 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Parcels NL and BE 369 387 370 444 1,570 Spring 125 137 133 155 549 Logistics solutions and other 73 76 74 83 306 Other / intercompany (12) (19) (7) (17) (55) Parcels 555 581 569 664 2,370 *Restated for change inter segment reporting As from 1 January 2025, real estate activities are included in the line ‘logistics solutions and other’. Furthermore, within the segment small changes in the presentation of the underlying business lines are applied. (in € million)
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PostNL Parcels Mail in the Netherlands PostNL Other Eliminations Income statement Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Total operating revenu 765 782 561 581 318 309 63 62 (177) (169) Other income 0 1 0 1 0 (0) 0 - - Cost of materials (21) (20) (16) (13) (3) (5) (2) (2) - Work contracted out and other external expenses (397) (409) (375) (389) (165) (160) (33) (30) 177 169 Salaries and social security contributions (259) (268) (106) (111) (122) (124) (31) (33) - Pension contributions & related costs (23) (24) (9) (9) (9) (10) (5) (5) - Depreciation, amortisation and impairments (46) (48) (23) (25) (5) (5) (18) (19) - Other operating expenses (41) (30) (28) (31) (32) (23) 19 25 - Total operating expenses (787) (799) (557) (578) (336) (327) (70) (64) 177 169 Operating income / EBIT (21) (17) 4 3 (18) (18) (7) (2) - - EBITDA PostNL Parcels Mail in the Netherlands PostNL Other Operating Income / EBIT (21) (17) 4 3 (18) (18) (7) (2) Depreciation, amortisation and impairments 46 48 23 25 5 5 18 19 Reported EBITDA 24 32 27 28 (13) (13) 10 17 IFRS16 impact (depreciation RoU assets) (18) (20) (13) (15) (2) (2) (3) (3) EBITDA excluding IFRS16 impact 6 12 14 13 (16) (15) 7 14 Full reconciliation of income statement and EBITDA 19 (in € million)
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Free cash flow per segment 20 PostNL Parcels Mail in the Netherlands PostNL Other & Eliminations Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 EBITDA 24 32 27 28 (13) (13) 10 17 Change in pensions 0 0 0 0 - - (0) (0) Change in provisions 9 4 (2) 1 11 3 (1) (0) Change in working capital* (7) (25) 9 21 (5) (12) (12) (34) Capex (26) (24) (5) (5) (1) (0) (20) (19) Disposals 8 1 8 1 0 - (0) 0 Interest paid (3) (3) (2) (2) (0) (0) (1) (1) Income tax paid (0) (0) (1) (1) 5 5 (4) (4) Lease payments and related cash flow (19) (20) (14) (15) (2) (2) (3) (3) Other 7 3 2 1 0 0 5 2 Free cash flow (7) (33) 23 28 (6) (20) (25) (41) Free cash flow yield -1% -7% (in € million)
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Profit and normalised comprehensive income PostNL 21 Q1 2024 Q1 2025 FY 2023 FY 2024 Operating income / EBIT (21) (17) 84 37 Net financial expenses (0) (5) (2) (8) Results from investments in JVs/associates 0 0 (4) (4) Income taxes 2 5 (24) (6) Profit/(loss) from discontinued operations (0) (0) 1 (1) Profit (19) (17) 56 18 Other comprehensive income 2 6 (8) 8 Total comprehensive income (17) (11) 47 26 Normalisation on EBIT, net of tax 9 1 6 11 Exclude result from discontinued operations 0 0 (1) 1 Normalised comprehensive income (8) (10) 52 38 (in € million)
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Sequential development normalised EBIT in 2025 22 Q1 2025 result as anticipated Normalised EBIT skewed to Q4 Indicative only, in € million Overall • Working day distribution over the quarters slightly differs and impacts quarterly split • Impact pricing largest in Q4 Parcels • Impact announced yield measures expected as of Q2 Mail in the Netherlands • Impact from elections on volume development in Q2 Q1 Q2 Q3 Q4 (9) 18 (18) 62 (15) 2024 Outlook 2025