bpost SA/NV

Earnings Release • Aug 4, 2022

Second quarter 2022 results Analyst call

Dirk Tirez, CEO Philippe Dartienne, CFO

August 5th, 2022

Investor presentation

Interim financial report 2Q22

Financial Calendar

09.11.2022 (17:45 CET) Quarterly results 3Q22

Disclaimer

This presentation is based on information published by bpost group in its Second Quarter 2022 Interim Financial Report, made available on August 4 th , 2022 at 5.45pm CET on bpostgroup.com/investors. This information forms regulated information as defined in the Royal Decree of November 14th , 2007. The information in this document may include forwardlooking 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.

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Highlights of 2Q22

Second quarter exceeds initial guidance. Results supported by resilient mail revenues, growth at Radial NA, and implementation of management actions to mitigate unfavorable macro-economic environment and support long-term growth

Group operating income	Belgium	E-Logistics Eurasia	E-Logistics N. Am.
€ 1,035.5m	€ 62.8m 11.8% EBIT margin	€ 7.1m 5.0% EBIT margin	€ 18.1m 4.8% EBIT margin
	• Total operating income at € 531.8m (-3.1%1 ) o underlying volume decline of -7.5% mitigated by positive mail price/mix impact	• Total operating income at € 141.7m (-16.9%) o continued expansion of Radial EU and Active Ants (+12.8%) offset by	• Total operating income at € 378.6m (+29.4%2 , or +14.6% at constant exchange rate), reflecting Radial's growth (+18.3%) driven by customers launched in 2021.
Group adjusted EBIT € 82.6m 8.0% EBIT margin down -22.5% compared to high comps of 2Q21	o parcels volumes -12.9% against high comps (or -2.9% excl. Amazon impact) • Stable OPEX1 driven by (i) 4 recent salary indexations mitigated by FTEs reduction, (ii) higher energy costs and (iii) higher recoverable VAT	o ongoing pressure on Asian cross-border and Dyna volumes • Lower OPEX (-10.3%) from (i) lower volume at Cross-border and Dyna, partly offset by (ii) inflation and (iii) e-com logistics' growth and expansion costs • Decline in EBIT margin q/q due to different product mix in cross border volumes for destination BE	• Sharp EBIT uplift with improved margin, mainly thanks to Radial's contribution

3

When including deconsolidation impact: -8.7% in Total operating income (UBR 2Q21: €33.9m) and -5.6% in OPEX (UBR 2Q21: €34.4m)

² Excluding impact of The Mail Group (TMG) sold on August 5th, 2021 When including deconsolidation impact: +22.2% in Total operating income (TMG 2Q21: €17.2m)

These results were obtained despite the adverse macro-economic environment with inflation further accelerating

Consumer confidence slightly recovered in Belgium

• For the third consecutive month, the consumer confidence indicator in Belgium continued to recover in June (-11 vs. -16 in March), contrasting with neighbouring countries in 2Q22
• Consumer confidence nevertheless remains below last year's levels and slightly fell back (BE) or deteriorated further (NL/EU) in July

Online retail sales in Belgium improved in May

y/y online retail sales evolution (deflated turnover)

• In Belgium, decline in online retail sales improved to -5% y/y in May from -16% in April, while showing a +10% growth m/m
• At EU level, m/m sales slightly improved in May
• In US, online retail sales continued to grow y/y, while m/m sales stabilized since February

Inflation has further accelerated in 2Q22

• Belgium's annual inflation rate climbed to 9.7% in June 2022 from 8.3% in March, the highest reading since October 1982
• Global recession risks arise as high inflation hurts household's disposable income and discretionary retail spend

Sources: Statbel, Eurostat, Census Bureau

¹Unaudited figures

5

Key financials 2Q22

€ million		Reported		Adjusted1
	2Q21	2Q22	2Q21	2Q22	% ↑
Total operating income	1,037.9	1,035.5	1,037.9	1,035.5	-0.2%
Operating expenses	866.5	884.8	866.5	884.8	2.1%
EBITDA	171.4	150.7	171.4	150.7	-12.1%
Depreciation & Amortization	68.0	71.2	64.8	68.1	5.2%
EBIT	103.4	79.5 1	106.6	82.6 1	-22.5%
Margin (%)	10.0%	7.7%	10.3%	8.0%
Financial result	-4.1	2 14.2	-4.1	2 14.2	-
Profit before tax	99.3	92.6	102.5	96.8	-5.5%
Income tax expense	26.9	24.7 1	27.6	25.5 1	-7.7%
Net profit	72.4	67.8 3	74.9	71.4 3	-4.7%
FCF	-60.9	-141.3 4	-60.7	-137.9 4	127.2%
Net Debt at June 30	489.4	572.8	489.4	572.8	17.1%
Capex	28.5	39.5	28.5	39.5	38.7%
Average # FTEs and interims	38,221	38,086	38,221	38,086	-0.4%

2Q22

• 1 Amortization and impairments of intangibles recognized during PPA are adjusted, leading to increase in EBIT (€ +3.2m) and income tax (€ +0.7m)
• Net Financial result increase mainly due to lower non -cash financial charges related to IAS 19 employee benefits, in line with higher discount rates
• Remeasurement of assets held for sale at fair value less costs to sell:
• Ubiway Retail: € +1.0m
• bpost bank: € +0.2m

4 Adjusted FCF excludes the cash Radial receives on behalf of its customers for performing billing services

Mail revenue decline from non-recurring COVID communications and continued pressure on parcels despite resilient volumes in May/June 2Q22 – Belgium

Belgium external operating income, € million

Domestic Mail

Operating income down € -7.3m:

• € -20.3m volume (-7.5% underlying volume decline against +1.4% in 2Q21)
• € +13.0m from price and mix impact

In Transactional Mail:

• Limited support from COVID-19 communication in 2Q22 (est. <€ 1m vs. € 8m in 2Q21)
• No change in known structural trends of continued e-substitution

Parcels Belgium

Total Parcels Belgium revenue down € -11.0m (-9.5%):

• Improved price/mix of +3.4%
• Parcels volume decline of -12.9% against high comps (incl. lockdown in April '21)

Underlying Parcels volume decline of -2.9% excl. Amazon's insourcing (-55.6%) vs. -8.1% in 1Q22, supported by resilient demand in Fashion in May-June

Proximity and convenience retail network

2 Revenue up € +5.6m (+8.9%) mainly from new Management Contract, excl. deconsolidation of Ubiway² 3 4

2Q19 2Q20 2Q21 2Q22 +57% -13% 2

Value added services Higher revenues from fines solution

EBIT driven by lower volumes and inflationary impacts on energy and payroll costs mitigated by accelerated FTEs reduction 2Q22 – Belgium

€ million Belgium 2Q21 2Q22 % ↑ External operating income 565.1 519.3 -8.1% Transactional 188.9 182.6 -3.3% Advertising 48.3 47.4 -1.8% Press 85.4 85.3 -0.1% Parcels Belgium 116.1 105.1 -9.5% Proximity and convenience retail network 97.1 68.8 -29.1% Value added services 29.2 30.0 2.8% Intersegment operating income 17.6 12.5 -29.2% Total operating income 582.7 531.8 -8.7% Operating expenses 475.6 448.9 -5.6% EBITDA 107.1 82.9 -22.6% Depreciation & Amortization 23.0 20.2 -12.1% Reported EBIT 84.1 62.6 -25.5% Margin (%) 14.4% 11.8% Adjusted EBIT 84.5 62.8 -25.7% Margin (%) 14.5% 11.8% Additional KPIs Underlying Mail volume trend +1.4% -7.5% Transactional -1.3% -8.2% Advertising +15.6% -2.4% Press -1.1% -10.8% Parcels B2X volume trend +2.9% -12.9%

Key takeaways 2Q22

• Total operating income down € -51.0m (-8.7%), or € -17.0m (-3.1%) excluding Ubiway Retail (UBR) impact
• Operating expenses (incl. adjusted D&A) decreased (€ +29.2m or -5.9%) and remained nearly stable despite inflationary pressure (€ -4.5m or +1.0%) when excluding UBR impact. This was mainly driven by:
• ‐ lower fleet and subcontractor costs and less FTEs (~ -780 FTEs y/y or -3.3%, excl. UBR) from lower parcels volumes and execution of dedicated management actions
• ‐ higher energy cost and payroll cost per FTE (4 recent salary indexations of +2% and change in Night shift regulation)
• ‐ and higher recoverable VAT

Growth in Radial and Active Ants offset by Dyna while Asian volumes remain under pressure due to new VAT regulation and lockdowns 2Q22 – E-Log. Eurasia

E-Logistics Eurasia external operating income, € million

E-commerce logistics

Revenue down € -2.2m (-3.3%):

• Radial Europe and Active Ants revenue growth of +12.8% from new customer onboardings and sales of existing customers starting to pick-up in May-June
• Offset by decline in revenue at DynaLogic due to lower consumer confidence and at DynaFix/Sure less devices to be repaired

Cross-border

Revenue down € -24.6m (-25.8%) mainly driven by lower Asian volumes still not recovering from the new VAT regulation (July '21) and impacted by recent COVID lockdowns in China and Ukraine war

Asia cross-border

EBIT impacted by lower cross-border and personalized logistics volumes, higher payroll costs

€ million
E-Logistics Eurasia	2Q21	2Q22	% ↑
External operating income	163.0	136.2	-16.5%
E-commerce logistics	67.6	65.3	-3.3%
Cross-border	95.5	70.8	-25.8%
Intersegment operating income	7.4	5.5	-25.6%
Total operating income	170.4	141.7	-16.9%
Operating expenses	143.7	128.8	-10.3%
EBITDA	26.8	12.8	-52.1%
Depreciation & Amortization	5.6	6.4	14.1%
Reported EBIT	21.2	6.4	-69.7%
Margin (%)	12.4%	4.5%
Adjusted EBIT	21.9	7.1	-67.4%
Margin (%)	12.8%	5.0%

Key takeaways 2Q22

• Total operating income down € -28.8m (-16.9%)
• Operating expenses (incl. adjusted D&A) decreased by € +14.0m (-9.4%), mainly explained by:
• ‐ lower transport costs and lower intersegment opex charged by Belgium at cross-border due from lower Asian volumes
• ‐ lower material costs, lower interims and transport costs in line with lower volumes at Dyna; partially offset by
• ‐ higher payroll costs from inflation and recent sites openings in Fulfilment, in line with expansion and strategic development initiatives
• Lower profitability q/q driven by different product mix in crossborder volumes for destination Belgium

2Q22 – E-Log. N. Am.

Continued strong revenue development driven by Radial's new customers launched in 2021

E-Logistics N. America external operating income, € million

10

E-commerce logistics

YoY increase of +29.7% (+14.9% at constant exchange rate).

Revenue increase driven by Radial from new customers contribution, launched in 2021 and accelerating as from June '21 onwards

Landmark US and Apple Express recorded continued volume growth from existing customers and new customers won in 2021

Radial NA revenues (m\$) in perspective

Radial NA revenues of 2Q22:

• +18% vs. 2Q21,
• in line with COVID-boosted 2Q20,
• +61% against 2Q19, from structural e-commerce logistics growth and expansion plan

Sharp EBIT uplift driven by strong performance at Radial and Landmark Global

€ million

E-Logistics North America	2Q21	2Q22	% ↑
External operating income	308.1	377.3	22.5%
E-commerce logistics	290.9	377.3	29.7%
International mail	17.2	0.0	-
Intersegment operating income	1.6	1.2	-25.3%
Total operating income	309.8	378.6	22.2%
Operating expenses	280.5	336.3	19.9%
EBITDA	29.2	42.2	44.5%
Depreciation & Amortization	20.5	26.3	28.1%
Reported EBIT	8.7	15.9	82.9%
Margin (%)	2.8%	4.2%
Adjusted EBIT	10.8	18.1	68.4%
Margin (%)	3.5%	4.8%
Additional KPIs, adjusted
Radial North America revenue, \$m	271.9	321.2	18.1%
Radial North America EBITDA, \$m	20.6	28.5	38.6%
Radial North America EBIT, \$m	2.1	6.9	225.2%

Key takeaways 2Q22

• Total operating income up € +68.8m (+22.2%, +8.2% at constant exchange rate) or up € +86.0m (+29.4%, +14.6% at CER) excluding TMG
• Operating expenses (incl. adjusted D&A) increased by € -61.4m (+20.6%, or +6.6% excl. FX), resulting from:
• ‐ higher variable opex in line with revenue development, including labor costs from continued wage rate pressure in fulfilment, mitigated by higher productivity
• ‐ higher costs from new site openings mitigated by lower SG&A
• Adjusted EBIT up € +7.4m (+68.4%) with improved margin of 4.8%

Corporate EBIT increase driven by lower OPEX

€ million

Corporate	2Q21	2Q22	% ↑
External operating income	1.7	2.7	62.7%
Intersegment operating income	96.9	96.4	-0.4%
Total operating income	98.5	99.1	0.6%
Operating expenses	90.2	86.3	-4.3%
EBITDA	8.3	12.8	54.8%
Depreciation & Amortization	18.9	18.3	-3.0%
Reported EBIT	-10.6	-5.5
Margin (%)	-10.7%	-5.5%
Adjusted EBIT	-10.6	-5.5
Margin (%)	-10.7%	-5.5%

Key takeaways 2Q22

• External revenues € +1.0m higher than last year, from higher building sales
• Decrease in operating expenses (incl. D&A) by € +4.5m (-4.1%), notably driven by overhead reduction (-3.8% FTEs).
• Adjusted EBIT up € +5.1m at € -5.5m

Stable Cash Flow from Operating activities negatively impacted by different phasing over quarters

€ million - Adjusted

	2Q21	2Q22	Delta
Cash flow from operating activities before Δ in WC and provisions	107.4	106.1	1 -1.3
Change in working capital and provisions	-139.7	-201.9	-62.2 2
Cash flow from operating activities	-32.3	-95.7	-63.5
Cash flow from investing activities	-28.4	-42.2	-13.8 3
Free cash flow	-60.7	-137.9	-77.2
Cash flow from financing activities	-28.6	-132.6	4 -104.0
Net cash movement	-89.3	-270.5	-181.2
Capex	28.5	39.5	11.0

Adjusted vs. Reported Cash Flow Statement in appendix

CF from operating activities

Lower operating results offset by favorable settlement of corporate income taxes in 2Q22

• € -62.2m change in working capital & provisions mainly driven by:
• Lower supplier balances
• A different payment schedule of terminal dues

CF from investing activities 3

Higher M&A activities (€ -9.7m) and higher capex (€ -11.0m) more than offsetting the settlement of the sale of bpost bank (€ +5.1m) and higher proceeds from building sales (€+1.9m)

2Q22

Capex at € 39.5m increased by € 11.0m and was mainly spent on e-commerce logistics growth of Radial (US) and optimization of the Belgium network.

CF from financing activities

4

Mainly driven by the dividend payment (€ -98.0m in May '22) and payments related to lease liabilities

1

Despite continued market disruptions, bpost revises downwards the risk to the guidance to up to € 25m on the back of a strong 2Q22 Outlook FY22

Whereas 1Q22 was in line with our initial guidance, 2Q22 outperforms our initial full year 2022 EBIT guidance of € 280-310m issued on February 24, 2022, notably thanks to the successful implementation of the measures explained in May with the 1Q22 results

However, unfavorable macro-economic environment persists and still brings uncertainty:

• rising inflation in Belgium and internationally, resulting in even stronger headwinds than anticipated in May (e.g. Belgian payroll and salary indexations: the additional € 17m cost vs. guidance has in the meantime increased to € 24.5m due to future salary indexation now expected to occur earlier in the year)
• uncertain consumer behavior linked to inflation impact on discretionary spending on the back of a potential recession, and post-pandemic parcel volume normalization

Stronger headwinds and consumer behavior remain a source of uncertainty for 3Q22 (historically a softer quarter with lower volumes during the summer period) and for the 4Q22 peak

As a result, bpost now revises downwards the potential risk to the initial guidance from "up to € 40m" to "up to € 25m" based on current perspective on overall market conditions

Management continues to take actions with increased sales efforts, price increases where appropriate and cost reductions

Management continues to implement measures at all levels to mitigate unfavorable impacts on EBIT and to execute on 2022 priorities Outlook FY22

Belgium

• Parcels commercial plan to counter volume loss supported by new customer wins and strategic partnerships
• Price increases to reflect inflationary pressure
• Major gains observed in workforce planning in concertation with the unions to take out costs in line with volumes (sorting, transport, distribution); further supported by natural attrition and mobility initiatives

• Cost reduction initiatives (operational and non-operational)

E-Logistics Eurasia

• Increased sales efforts paying off at Cross-border, Radial Europe and Active Ants
• Operational improvements across the board through cost optimizations, productivity improvements and synergies
• Cost containment measures such as hiring delays and nonoperational spending reduction

E-Logistics North America

• Pricing adjustments to reflect wage and shipping cost increases
• Additional productivity actions in Fulfilment activities at certain Radial sites (incl. operational flow improvements, workforce stabilization and implementation of automation)
• Reduction of overhead to revenue ratio while investing in operation structure to drive future growth

Group

• Strict hiring policy and related governance allowing to leverage natural attrition
• Diligent execution of overhead FTE reduction further supported by the launch in April '22 of the Bpost Business Services(BBS corporate shared services center)
• Focus on procurement initiatives and facility management costs
• Peak planning across all businesses

Additional info

Adjusted vs. reported Cash Flow Statement

€ million	Reported			Adjusted
	2Q21	2Q22	Delta	2Q21	2Q22	Delta
Cash flow from operating activities before Δ in WC and provisions	107.4	106.1	-1.3	107.4	106.1	-1.3
Change in working capital and provisions	-139.9	-205.3	-65.4	-139.7	-201.9	-62.2 1
Cash flow from operating activities	-32.5	-99.1	-66.6	-32.3	-95.7	-63.5
Cash flow from investing activities	-28.4	-42.2	-13.8	-28.4	-42.2	-13.8
Free cash flow	-60.9	-141.3	-80.4	-60.7	-137.9	-77.2
Cash flow from financing activities	-28.6	-132.6	-104.0	-28.6	-132.6	-104.0
Net cash movement	-89.6	-273.9	-184.3	-89.3	-270.5	-181.2
Capex	28.5	39.5	11.0	28.5	39.5	11.0

Adjustments

Change in working capital:

Cash outflow related to collected proceeds due to Radial's clients was € 3.1m higher (€ 3.4m outflow in 2Q22 against outflow of € 0.2m in 2Q21)

Balance Sheet

€ million			€ million
Assets	Dec 31, 2021	Jun 30, 2022	Equity and Liabilities	Dec 31, 2021	Jun 30, 2022
PPE	1,263.5	1,355.4	Total equity	885.3	983.7
Intangible assets	797.0	854.3	Interest-bearing loans & borrowings	1,377.7	1,478.0
Investments in associates and joint ventures	0.0	0.1	Employee benefits	298.2	276.0
Other assets	53.1	44.1	Trade & other payables	1,504.3	1,264.6
Trade & other receivables	936.3	855.5	Provisions	25.8	25.4
Inventories	20.7	21.2	Derivative instruments	0.3	0.1
Cash & cash equivalents	907.5	905.3	Other liabilities	10.1	9.0
Assets held for sale	163.3	0.8	Liabilites held for sale	39.7	0.0
Total Assets	4,141.3	4,036.8	Total Equity and Liabilities	4,141.3	4,036.8

Main balance sheet movements

Property, plant and equipment increased as the capital expenditure, the increase in the right-of-use assets and the evolution of the FX rate outpaced the depreciation.

Trade and other receivables decreased driven by the settlement of the SGEI for the delivery of newspapers and periodicals for 2021, the repayment of the € 25m loan by bpost bank, and the peak sales of yearend 2021.

Equity increased mainly explained by the realized profit and the exchange differences on translation of foreign operations, partially offset by the payment of the dividend in May (€ 98.0m)

Cash & cash equivalents remained stable. Interests-bearings loans and borrowings increased mainly due to higher lease liabilities and negative FX impact on USD debt.

Change in trade & other payables was mainly due social and trade payables. The decrease of the trade payables was mainly a phasing element given the peak season at year-end, the decrease of the social payables caused by the timing difference as FY21 social accruals have been paid in 1H22. The decrease of other payables was mainly due to the repayment of the working capital facility to bpost bank.

The assets held for sale and liabilities held for sale should be reviewed together, the net decrease is explained by sale of bpost bank and Ubiway Retail in 2022.

Financing Structure & Liquidity

€ million
Available Liquidity	Dec 31, 2021	Jun 30, 2022
Ca sh & c a sh eq u iv a l en ts	907.5	905.3
Cash in network	149.9	147.7
Transit accounts	44.9	65.8
Cash payment transactions under execution	-28.4	(7.9)
Bank current accounts	578.6	484.9
Short-term deposits	162.6	214.8
U n d ra w n rev o l v in g c red it f a c il ities	375.0	375.0
Syndicated facility - 10/2024	300.0	300.0
Bilateral facility - 06/2025	75.0	75.0
Total Available Liquidity	1,282.5	1,280.3

€ million

€ million
External Funding	Dec 31, 2021	Jun 30, 2022
L o n g -term
Long-term bond1 (1.25% - 07/2026)	650.0	650.0
Bank loans	163.3	178.1
Amortizing Loan (€ 100m) - 12/2022	0.0	0.0
Term Loan (\$ 185m) - 07/2023	163.3	178.1
Sh o rt-term
Bank loans: Amortizing Loan (€ 100m) - 12/2022	9.1	9.1
Commercial Paper	0.0	0.0
Total External Funding	822.4	837.2

Liquidity: Cash & Committed credit lines

Total available liquidity on June 30, 2022 consisted out of € 905.3m cash & cash equivalents of which € 699.7m is readily available on bank current accounts and as short-term deposits.

In addition, bpost group has 2 undrawn revolving credit facilities for a total amount of € 375m.

External Funding & Debt Amortization (excl. IFRS16 lease liabilities)

Out of € 837.2m external funding on balance sheet on June 30, 2022:

‐ € 9.1m needs to be repaid in 4Q22 (i.e. current portion of the amortizing loan)

¹ € 650m long-term bond with a carrying amount of € 645.4m, the difference being the re-offer price and issuance fees.

Belgian payroll costs: next indexation now occurring in Sept. '22 with € 7.5m additional cost (€ ~24.5m total impact vs. guidance)

Belgian salary indexations

• Under the Belgian social security system, salaries are automatically indexed to inflation; leading all Belgian employers to face automatic and mandatory pay rises.
• For bpost, out of CLA scope, public wages and social benefits are adjusted to the higher costs of living with a +2% indexation two months after every time the Smoothed Health Index reaches the Salary indexation (Pivot Index) threshold
• Based on July inflation level and on last monthly forecast¹ , an indexation will occur in September '22 (vs. December previously), and next ones are expected to follow in February and May '23, adding to the ones of November '21, February '22, April '22 and June '22

Should inflation further accelerate, anticipated indexations could occur earlier in the year.

Federal Planning Bureau Inflation forecasts

¹ Monthly forecast of the Federal Planning Bureau publicly available at https://www.plan.be/databases/17-en-consumer_price_index_inflation_forecasts

Key contact

Antoine Lebecq Head of Investor Relations

Email: antoine.lebecq@bpost.be Direct: +32 (0) 2 276 29 85 Mobile: +32 (0) 471 81 24 77 Address: bpostgroup, Boulevard Anspach 1, 1000 Brussels, Belgium