Earnings Release • Nov 3, 2014
Earnings Release
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Koen Van Gerven, CEO, commented: "I'm pleased with the strong performance of parcels and the solid results bpost recorded in the third quarter. Results were also helped by a softer volume decline in mail volumes but we remain cautious as the underlying trends of e-substitution and weak sales in advertising mail remain unchanged. We therefore continue to prepare ourselves to react if more adverse conditions would happen. Operational results (EBITDA) were also impacted by some nonoperational items, which resulted in a marginal increase by 0.6%."
"I'm also happy with the new initiatives launched this quarter: the delivery of groceries at home and the improvements in our parcels offering, in particular the launch of our parcels lockers and improved convenience for senders and receivers of parcels. I'm convinced that these initiatives will strengthen our leadership in the last mile delivery."
Outlook remains broadly unchanged versus the second quarter of 2014. However, persisting underlying volume trends in Domestic Mail partially helped by a better third quarter, make us return to our initial volume decline outlook of around -5% for the full year.
| 3rd quarter (in million EUR) | |||||
|---|---|---|---|---|---|
| Reported | Normalized | ||||
| 2013 | 2014 | 2013 | 2014 | % change |
|
| Total operating income (revenues) | 566.6 | 569.2 | 566.6 | 569.2 | 0.5% |
| Operating expenses | 462.7 | 464.7 | 462.7 | 464.7 | -0.4% |
| EBITDA | 103.9 | 104.4 | 103.9 | 104.4 | 0.6% |
| Margin (%) | 18.3% | 18.3% | 18.3% | 18.3% | |
| EBIT | 81.5 | 82.9 | 81.5 | 82.9 | 1.8% |
| Margin (%) | 14.4% | 14.6% | 14.4% | 14.6% | |
| Profit before tax | 80.6 | 79.8 | 80.6 | 79.8 | -1.0% |
| Income tax expense | 26.9 | 27.0 | 26.9 | 27.0 | |
| Net profit | 53.8 | 52.7 | 53.8 | 52.7 | -1.9% |
| FCF | (2.5) | (38.5) | (2.5) | (38.5) | - |
| bpost S.A./N.V. net profit (BGAAP) | 44.9 | 46.6 | 44.9 | 46.6 | 3.9% |
| Net Debt/(Net Cash), at 30 September | (535.4) | (645.9) | (535.4) | (645.9) | 20.6% |
In the third quarter of 2013 and 2014, there are no differences between reported and normalized figures.
| Year-to-date (in million EUR) | |||||
|---|---|---|---|---|---|
| Reported | Normalized | ||||
| 2013 | 2014 | 2013 | 2014 | % change |
|
| Total operating income (revenues) | 1,802.2 | 1,809.4 | 1,787.7 | 1,809.4 | 1.2% |
| Operating expenses | 1,372.4 | 1,368.3 | 1,372.4 | 1,368.3 | 0.3% |
| EBITDA | 429.9 | 441.0 | 415.3 | 441.0 | 6.2% |
| Margin (%) | 23.9% | 24.4% | 23.2% | 24.4% | |
| EBIT | 363.9 | 377.3 | 349.3 | 377.3 | 8.0% |
| Margin (%) | 20.2% | 20.9% | 19.5% | 20.9% | |
| Profit before tax | 371.4 | 368.8 | 356.8 | 368.8 | 3.4% |
| Income tax expense | 136.1 | 124.0 | 136.1 | 124.0 | |
| Net profit | 235.2 | 244.8 | 220.6 | 244.8 | 11.0% |
| FCF | 113.3 | 324.9 | 236.5 | 325.2 | 37.5% |
| bpost S.A./N.V. net profit (BGAAP) | 175.5 | 218.1 | 175.5 | 218.1 | 24.3% |
| Net Debt/(Net Cash), at 30 September | (535.4) | (645.9) | (535.4) | (645.9) | 20.6% |
For more information: Investors Press Paul Vanwambeke T. +32 2 276 2822 Piet Van Speybroeck www.bpost.be/ir [email protected] [email protected]
Saskia Dheedene T. +32 2 276 7643 M. +32 477 68 47 12 | T. +32 2 276 2185
1 Normalized figures are not audited, for further details on reconciliation of normalized and reported key figures, please refer to section "Reconciliation of Reported to Normalized Financial Metrics" of this document
Group revenues increased by EUR 2.6m (+0.5%), to EUR 569.2m in the third quarter, of which EUR 2.5m related to scope changes (100% acquisition of Gout, BEurope, Ecom and Starbase by Landmark Global Inc.). Excluding last year's proceeds from sales of buildings, which were EUR 7.7m above this year's level, revenues grew by EUR 7.8m organically driven by the solid performance of parcels (EUR +13.0m), partially offset by the decrease of domestic mail (EUR -6.5m).
Reported EBITDA and EBIT margin were in line with last year. Excluding scope change and the lower proceeds from sales of buildings, EBITDA and EBIT grew respectively by EUR 8.1m and EUR 8.9m.
Net financial expenses increased by EUR 2.9m to EUR -5.7m, mainly explained by the increase of IAS 19 related non cash financial cost generated by the decrease in discount rates.
Income Tax expense as well as the effective tax rate are in line with last year.
IFRS group net profit stood at EUR 52.7m. Belgian GAAP net profit of the parent company amounted to EUR 46.6m for the quarter (+3.9%).
For the first nine months, group revenues increased by EUR 21.7m (+1.2%) on a normalized basis to EUR 1,809.4m, of which EUR 14.6m is organic growth. This was mainly driven by Parcels (EUR +37.9m organically), Additional sources of revenues (EUR +7.3m) and price increases in Domestic Mail (EUR +19.9m), which together more than compensated the volume losses in Domestic Mail (EUR -46.8m, excluding EUR 4.6m contribution related to 2014 elections) and lower gains on disposal of buildings (EUR -6.1m).
Costs decreased organically by EUR 10.7m, leading to a higher EBITDA margin of 24.4% to reach EUR 441.0m (EUR +25.7m versus last year) on a normalized basis.
EBIT came in at EUR 377.3m (EUR +28.0m versus last year), with depreciation charges amounting to EUR 63.7m.
Net financial expenses increased by EUR 10.8m to EUR -17.4m. This evolution is mainly explained by higher non-cash financial charges (up EUR 13.6m) related to employee benefits IAS 19 generated by the decrease in discount rates.
Income Tax expense decreased by EUR 12.1m compared to last year. This decrease was mainly explained by the fact that an additional income tax charge of EUR 17.6m had been incurred in the first half of 2013. This additional tax charge was the result of the transfer of EUR 21.3m from tax free reserves to distributable results and the payout of untaxed reserves of EUR 30.3m.
IFRS group net profit stood at EUR 244.8m. Belgian GAAP net profit of the parent company amounted to EUR 218.1m year to date.
| 3rd quarter | Reported | Organic2 | underlying volume |
||||
|---|---|---|---|---|---|---|---|
| Change | Change | ||||||
| In million EUR | 2013 | 2014 | % | 2013 | 2014 | % | Change % |
| Domestic mail | 348.4 | 341.9 | -1.9% | 348.4 | 341.9 | -1.9% | -4.3% |
| Transactional mail | 212.5 | 209.3 | -1.5% | 212.5 | 209.3 | -1.5% | -4.7% |
| Advertising mail | 60.5 | 58.3 | -3.6% | 60.5 | 58.3 | -3.6% | -3.7% |
| Press | 75.4 | 74.3 | -1.5% | 75.4 | 74.3 | -1.5% | -2.5% |
| Parcels | 58.0 | 72.9 | 25.7% | 58.0 | 70.9 | 22.3% | 29.7% |
| Domestic Parcels | 31.9 | 35.2 | 10.3% | 31.9 | 35.2 | 10.3% | 10.3% |
| International Parcels | 22.2 | 34.8 | 56.8% | 22.2 | 32.8 | 47.9% | |
| Special Logistics | 3.9 | 2.9 | -25.6% | 3.9 | 2.9 | -25.6% | |
| Additional sources of revenues | 146.3 | 148.4 | 1.4% | 146.3 | 147.8 | 1.0% | |
| International mail | 45.5 | 48.5 | 6.6% | 45.5 | 48.5 | 6.6% | |
| Value-added services | 23.5 | 22.9 | -2.6% | 23.5 | 24.1 | 2.5% | |
| Banking and financial products | 51.8 | 50.6 | -2.3% | 51.8 | 50.6 | -2.3% | |
| Others | 25.5 | 26.4 | 3.5% | 25.5 | 24.6 | -3.5% | |
| Corporate operating income | 13.8 | 6.0 | -56.5% | 13.8 | 6.0 | -56.5% | |
| Total operating income | 566.6 | 569.2 | 0.5% | 566.6 | 566.6 | 0.0% |
Revenues from Domestic Mail decreased by EUR 6.5m (-1.9%) to EUR 341.9m. Excluding the impact of one less working day in the quarter, underlying volume decline came in at -4.3%. Transactional mail, with underlying volume decline at -4.7%, continued to suffer from e-substitution by the same large senders of last quarter and a general trend towards reducing postal spend; however we have not witnessed additional customers implementing new aggressive measures. At the same time some one-off elements (e.g. rebranding campaigns by customers) had a positive impact. Advertising mail remained weak this quarter, with the underlying volume evolution amounting to -3.7%. Press volume declines showed an improvement at -2.5%. Total mail volume declines impacted revenues by EUR -12.9m, partially compensated by the net improvement in price and mix, amounting to EUR 7.3m.
Parcels performed strongly, with organic growth at EUR 13.0m. International parcels grew by EUR +10.6m organically. Traffic on lanes from the US (EUR +5.7m) and China (EUR +2.2m) continued to develop well, while lanes towards China (EUR +1.4m) still recorded a modest growth. Volume growth in Domestic Parcels came in at 10.3%, an excellent performance against the first half of the year (+5.2%). Excellent growth in e-tailing activities, first signs of recovery in C2C and a one-off action of one customer (worth 60 basis points of volume growth) together explain this evolution.
Total operating income from Additional sources of revenues increased by EUR 1.4m organically to reach EUR 148.4m. This is mainly driven by good performance in International Mail (EUR +3.0m) and Value Added Service (EUR +0.6m), partially offset by a decrease in Banking and Financial
2 Organic figures are not audited, and contain impact normalization (see section "Reconciliation of Reported to Normalized Financial Metrics"), transfer between VAS and Other in 2013 and exclude impact scope changes
products revenues (EUR -1.3m) resulting from phasing and lower volumes of financial transactions managed on behalf of the Belgian State.
Revenues from Corporate decreased by EUR 7.9m to EUR 6.0m, mainly due to lower gains on the disposal of buildings (EUR -7.7m). Last year, gains on the sale of buildings were positively impacted by one sizeable transaction (EUR 11.4m).
| Year-to-date | Reported | Organic | underlying volume |
||||
|---|---|---|---|---|---|---|---|
| Change | |||||||
| In million EUR | 2013 | 2014 | % | 2013 | 2014 | Change % | Change % |
| Domestic mail | 1,137.0 | 1,113.8 | -2.0% | 1,137.0 | 1,113.8 | -2.0% | -4.7% |
| Transactional mail | 701.7 | 684.1 | -2.5% | 701.7 | 684.1 | -2.5% | -5.3% |
| Advertising mail | 202.0 | 199.9 | -1.0% | 202.0 | 199.9 | -1.0% | -3.3% |
| Press | 233.4 | 229.9 | -1.5% | 233.4 | 229.9 | -1.5% | -2.9% |
| Parcels | 173.6 | 217.1 | 25.1% | 173.6 | 211.5 | 21.8% | 28.1% |
| Domestic Parcels | 102.9 | 110.4 | 7.3% | 102.9 | 110.4 | 7.3% | 6.8% |
| International Parcels | 58.5 | 97.0 | 65.8% | 58.5 | 91.4 | 56.2% | |
| Special Logistics | 12.2 | 9.7 | -20.5% | 12.2 | 9.7 | -20.5% | |
| Additional sources of revenues |
460.3 | 454.4 | -1.3% | 445.7 | 453.0 | 1.6% | |
| International mail | 144.1 | 148.4 | 3.0% | 144.1 | 148.4 | 3.0% | |
| Value-added services | 66.5 | 71.6 | 7.7% | 66.5 | 71.6 | 7.7% | |
| Banking and financial products | 156.4 | 154.9 | -1.0% | 156.4 | 154.9 | -1.0% | |
| Others | 93.3 | 79.5 | -14.8% | 78.7 | 78.1 | -0.8% | |
| Corporate operating income | 31.3 | 24.0 | -23.3% | 31.3 | 24.0 | -23.3% | |
| Total operating income | 1,802.2 | 1,809.4 | 0.4% | 1,787.7 | 1,802.3 | 0.8% |
Domestic Mail revenues amounted to EUR 1,113.8m, a EUR 23.2m decline versus last year, due to an underlying volume evolution of -4.7%, partly compensated by price increases and elections revenues in the second quarter.
Parcels revenues attained EUR 217.1m (EUR +43.5m, of which EUR +37.9m organic growth), driven by volume growth of +6.8% in domestic parcels and by strong development in international parcels.
Additional sources of revenues amounted to EUR 454.4m, down EUR -5.9m. Excluding the gain on the sale of Certipost activities, revenues were up EUR 8.7m of which EUR 7.3m was organic growth.
| 3rd quarter | Reported | Organic3 | ||||
|---|---|---|---|---|---|---|
| In million EUR | 2013 | 2014 | Change % | 2013 | 2014 | Change % |
| Payroll & interim costs | 311.3 | 312.5 | 0.4% | 311.3 | 312.0 | 0.2% |
| FTE | 27,090 | 26,060 | -1,030 | 27,090 | 25,998 | -1,092 |
| SG&A (excl. interim and transport costs) | 93.6 | 90.8 | -3.0% | 93.6 | 90.4 | -3.4% |
| Transport costs | 43.7 | 51.7 | 18.3% | 43.7 | 50.5 | 15.7% |
| Other costs | 14.2 | 9.7 | -31.6% | 14.2 | 9.5 | -33.6% |
| Total operating expenses | 462.7 | 464.7 | 0.4% | 462.7 | 462.4 | -0.1% |
Total operating costs stood at EUR 464.7m, a slight organic decrease of EUR -0.3m. Transport costs increased by EUR 6.9m, linked to the strong growth of our international activities. Excluding transport costs, operating expenses remained well under control and decreased by EUR 7.2m on an organic basis.
Payroll and interim costs were impacted by the opposite effects of, on the one hand, the decrease of the average number of FTE by 1,092 versus the same quarter of last year (EUR -13.3m) and on the other hand the salary increases and impact of the collective labour agreement (together EUR +3.3m), one-off restructuring charges (EUR +3.1m), evolution of employee benefits (EUR +1.8m), a slightly negative mix effect (EUR +0.2m) resulting from lesser use of students and higher use of interims and finally higher provisions for delay in holiday taking (EUR +2.9m). The latter indicates that the FTE reduction figure reported is slightly inflated compared to the underlying trends, as fewer holidays were taken to date compared to last year. Excluding the temporary positive effect on FTE reduction resulting from the delay in the holiday take-up, the underlying FTE reduction is estimated at 840 FTE for the quarter, in line with management guidance.
SG&A excluding transport costs decreased by EUR 3.2m organically, resulting from lower rent and rental costs (EUR -1.5m) due to the extension of fleet contracts leading to lower monthly cost, lower energy bills (EUR -0.7m) thanks to the positive price evolution of fuel costs and lower publicity and advertising costs (EUR -0.7m).
The decrease of the other costs (EUR -4.8m organically) is mainly the result of last year's estimate for 9 months of local and real estate taxes as new legislation became applicable to bpost (taken in full in the third quarter of 2013 but spread over the year for 2014), the favourable settlement of provisions and a decrease in material costs.
3 Organic figures are not audited, and contain impact normalization (see section "Reconciliation of Reported to Normalized Financial Metrics") and exclude impact scope changes
| Year-to-date | Reported | Organic | ||||
|---|---|---|---|---|---|---|
| Change | Change | |||||
| In million EUR | 2013 | 2014 | % | 2013 | 2014 | % |
| Payroll & interim costs | 933.5 | 922.8 | -1.1% | 933.5 | 921.5 | -1.3% |
| FTE | 26,510 | 25,488 | -1,022 | 26,510 | 25,433 | -1,077 |
| SG&A (excl. interim and transport costs) | 286.1 | 269.2 | -5.9% | 286.1 | 267.9 | -6.4% |
| Transport costs | 127.1 | 150.7 | 18.5% | 127.1 | 147.5 | 16.0% |
| Other costs | 25.6 | 25.6 | 0.0% | 25.6 | 24.9 | -3.0% |
| Total operating expenses | 1,372.4 | 1,368.3 | -0.3% | 1,372.4 | 1,361.7 | -0.8% |
For the first nine months of 2014, total operating costs amounted to EUR 1,368.3m, an organic saving of EUR 10.7m compared to last year. Excluding transport costs, total expenses went down organically by EUR 31.0m, mainly as a result of lower payroll and interim costs (EUR -12.0m) and lower SG&A and other costs (EUR -19.0m).
Normalized free cash flow for the third quarter (EUR -38.5m) was EUR 36.0m lower than last year, due to lower cash flow from both operating and investing activities.
Normalized cash flow from operating activities for the third quarter was EUR 10.1m lower compared to the same period last year. The improved result of operating activities (EUR 14.2m) was more than offset by a deterioration in working capital (EUR 24.2m) mainly due to the announced reversal of the positive phasing effect recorded in the first quarter of 2014 relating to terminal dues.
Investing activities generated a cash outflow of EUR 21.7m for the third quarter compared to an inflow of EUR 4.1m for the same period last year. This variance is mainly due to higher capital expenditure (EUR 13.7m) on extensions of the sorting centres and the installation of new sorting machines for mixed/large format mail (as part of the Vision 2020 program). We also recorded lower proceeds from sale of property, plant and equipment for an amount of EUR 14.5m.
Normalized free cash flow was EUR 88.7m better than last year due to a better cash flow from operating activities partly offset by a higher cash outflow for investing activities.
Normalized cash flow from operating activities4 of EUR 379.9m was EUR 96.6m higher than last year thanks to improved results from operating activities (EUR +44.5m) and EUR 52.2m additional cash generated from working capital.
Investing activities generated a cash outflow of EUR 54.8m compared to an outflow of EUR 46.8m for the same period last year, mainly resulting from higher capital expenditure as explained above (EUR 15.0m) and lower proceeds from sale of property, plant and equipment (EUR 12.8m). These effects were partially offset by lower cash outflows related to the subsidiaries (EUR 19.9m), as last year bpost participated in the capital increase of bpost bank (EUR 37.5m) and purchased the remaining 20% shares of MSI (EUR 6.8m), but received cash from the disposal of certain activities of Certipost (EUR 15.1m). This year, bpost acquired new subsidiaries for a total amount of EUR 9.1m.
4 Excluding evolution of deposits received from third parties of EUR 0.2m and the exceptional repayment in 2013 of alleged SGEI overcompensation (EUR 123.1m).
The cash outflow from financing activities amounted to EUR 41.6m of which EUR 40.0m is related to the top-up dividend relating to the 2013 results paid in 2014. Net cash stood at EUR 645.9m at 30th September 2014.
Part of bpost's strategy is to look at opportunities which add revenues and/or strength to our existing business in Belgium. In addition, on a very selective basis, we explore other opportunities if they provide a strong return on investment, where bpost is able to bring particular benefits to the situation, such as leveraging its know-how in modernizing postal operations, while not risking the dividend payments for our shareholders.
The Romanian government has launched a privatisation process for Posta Romana. bpost is at a very early stage of assessing whether or not this provides one such opportunity and in order to start in-depth due diligence on the company, such non-binding proposal was required. It is much too early to say if this will lead to any binding offer, and in this particular case any investment, if made, would be quite limited in terms of financial and managerial resources committed.
bpost strives to offer its customers the best options to receive their parcels. Starting November, bpost will deliver parcels on Saturdays in order to strengthen its offering. The delivery to parcels lockers was also launched on a commercial basis. There are already more than a hundred lockers across Belgium where addressees can pick up their parcel when it suits them, 24/7/365. They have been set up at busy locations like train stations, department store car parks and large post offices. Lastly, bpost also commercially launched online parcel preparation (labelling, payment) and direct drop-off and pick-up in one of our 1,250 parcel points, leading to improved convenience for users.
Late September, home delivery by bpost of groceries ordered online has been rolled out to all inhabitants of Brussels and Walloon Brabant. On the bpost platform "www.combo.be" shoppers can place their orders with participating stores, choose a delivery slot and combine orders placed at different retailers into one delivery. The service has been extended to parts of Flemish Brabant at the end of October.
The special general meeting of shareholders, which was held on 22 September 2014, has appointed Ray Stewart and Michael Stone as independent directors of the company with immediate effect. Ray Stewart and Michael Stone replace Bjarne Wind and K.B. Pedersen, both of whom tendered their resignation following the sale by CVC of the majority of its participation in the company's share capital.
The Board of Directors has restructured the executive management of the company. As of 1 September 2014, the Management Committee and the Group Executive Management are both composed of Koen Van Gerven (CEO & Parcels), Pierre Winand (CFO), Marc Huybrechts (MRS director), Mark Michiels (HR) and Kurt Pierloot (MSO & International director).
Half October, bpost announced the tariff increases on mail products applicable as of January 2015. In compliance with the regulatory framework, the average price rise for all domestic mail products will be approximately 1.5%.
bpost has integrated its different international activities into one combined structure to leverage on the synergies and expertise of those entities in order to serve the package distribution needs of the global e-commerce marketplace. The new organisation will operate under the brand name "Landmark Global, a bpost company" and will be led by Dave Mays, the current CEO and founder of Landmark Global, Inc. He will report to a global board comprising Kurt Pierloot, Dave Mays and Pierre Winand. Kurt Pierloot will be the representative of Landmark Global on the bpost Group Executive Committee.
| 17.03.15 (10:00 CET) Analyst Conference Call 06.05.15 (17:45 CET) Announcement 1Q15 results 07.05.15 (10:00 CET) Analyst Conference Call 13.05.15 Ordinary General Meeting of Shareholders 18.05.15 Ex-dividend date 19.05.15 Record date 20.05.15 Payment date of the dividend 06.08.15 (17:45 CET) Announcement 2Q15 and half-year results 07.08.15 (10:00 CET) Analyst Conference Call 05.11.15 (17:45 CET) Announcement 3Q15 results 06.11.15 (10:00 CET) Analyst Conference Call 03.12.15 (17:45 CET) Financial results first 10 months of 2015 08.12.15 Ex-dividend date (interim dividend) 09.12.15 Record date (interim dividend) |
04.12.14 (17:45 CET) 08.12.14 09.12.14 10.12.14 16.03.15 (17:45 CET) |
Financial results 10 first months of 2014 Ex-dividend date (interim dividend) Record date (interim dividend) Payment date of the interim dividend Announcement annual results FY2014 |
|---|---|---|
| 10.12.15 Payment date of the interim dividend |
| Year-to-date | 3rd quarter | ||||
|---|---|---|---|---|---|
| 2014 | 2013 | 2014 | 2013 | ||
| In million EUR | NOTES | ||||
| Turnover | 6 | 1,794.5 | 1,766.7 | 562.8 | 552.6 |
| Other operating income | 7 | 14.8 | 35.6 | 6.3 | 14.0 |
| Total operating income | 1,809.4 | 1,802.2 | 569.2 | 566.6 | |
| Materials cost | (22.0) | (22.9) | (7.0) | (7.7) | |
| Services and other goods | 8 | (443.4) | (434.9) | (151.0) | (143.4) |
| Payroll costs | (899.3) | (911.9) | (303.9) | (305.1) | |
| Other operating expenses | (3.6) | (2.7) | (2.8) | (6.6) | |
| Depreciation, amortization | (63.7) | (66.0) | (21.5) | (22.4) | |
| Total operating expenses | |||||
| (1,432.0) | (1,438.4) | (486.2) | (485.1) | ||
| Profit from operating activities (EBIT) | 377.3 | 363.9 | 82.9 | 81.5 | |
| Financial income | 3.1 | 2.9 | 1.0 | 1.7 | |
| Financial cost | (20.5) | (9.4) | (6.8) | (4.5) | |
| Share of profit of associates | 8.9 | 14.1 | 2.6 | 1.9 | |
| Profit before tax | 368.8 | 371.4 | 79.8 | 80.6 | |
| Income tax expense | (124.0) | (136.1) | (27.0) | (26.9) | |
| Profit for the period | 244.8 | 235.2 | 52.7 | 53.8 | |
| Attributable to: | |||||
| Owners of the Parent | 242.9 | 233.7 | 52.2 | 53.5 | |
| Non-controlling interests | 1.9 | 1.5 | 0.5 | 0.2 | |
| EARNINGS PER SHARE | Year-to-date | 3rd quarter | |||
| In EUR | 2014 | 2013 | 2014 | 2013 | |
| ►basic, profit for the year attributable to ordinary equity holders of the parent |
1.21 | 1.17 | 0.26 | 0.27 | |
| ►diluted, profit for the year attributable to | |||||
| ordinary equity holders of the parent | 1.21 | 1.17 | 0.26 | 0.27 |
In accordance with IAS 33, diluted earnings per share amounts have to be calculated by dividing the net profit attributable to ordinary equity holders of the parent (after adjusting for the effects of all dilutive potential ordinary shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
In case of bpost, no effects of dilution affect the net profit attributable to ordinary equity holders and the weighted average number of ordinary shares.
5 The interim condensed consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting
| Per September 2014 |
Per September 2013 |
|
|---|---|---|
| In million EUR | ||
| Profit for period | 244.8 | 235.2 |
| Fair value for financial assets available for sale by associates | 66.7 | (64.7) |
| (Loss)gain on available for sale financial assets | 101.2 | (98.0) |
| Income tax effect | (34.5) | 33.3 |
| Fair value of actuarial results on defined benefit plans | (0.2) | 7.4 |
| Actuarial (losses)/gains on defined benefit plans | (2.3) | 10.1 |
| Income tax effect | 2.1 | (2.7) |
| Non-controlling interests | 0.0 | 0.0 |
| Other comprehensive income for the year, net of tax (*) | 66.4 | (57.3) |
| Total comprehensive income for the year, net of tax | 311.3 | 178.0 |
| Attributable to: | ||
| Owners of the Parent | 309.3 | 176.5 |
| Non-controlling interest | 1.9 | 1.5 |
* Net other comprehensive income is not being reclassified to profit or loss in subsequent periods.
Impact of the currency translation adjustment is immaterial.
| NOTES | As of 30 September 2014 |
As of 31 December 2013 |
|
|---|---|---|---|
| In million EUR | |||
| Assets | |||
| Non-current assets | |||
| Property, plant and equipment | 9 | 562.6 | 570.3 |
| Intangible assets | 10 | 92.8 | 89.0 |
| Investments in associates | 11 | 416.9 | 341.3 |
| Investment properties | 9.1 | 10.3 | |
| Deferred tax assets | 52.8 | 58.3 | |
| Trade and other receivables | 2.4 | 2.2 | |
| Current assets | 1,136.7 | 1,071.3 | |
| Assets held for sale | 0.6 | 0.1 | |
| Inventories | 11.5 | 9.2 | |
| Income tax receivable | 1.0 | 0.1 | |
| Trade and other receivables | 12 | 312.6 | 400.2 |
| Cash and cash equivalents | 13 | 731.6 | 448.2 |
| 1,057.3 | 857.8 | ||
| Total assets | 2,194.0 | 1,929.2 | |
| Equity and liabilities | |||
| Equity attributable to equity holders of the Parent | |||
| Issued capital | 364.0 | 364.0 | |
| Treasury shares Reserves |
0.0 240.2 |
0.0 111.0 |
|
| Retained earnings | 244.8 | 101.9 | |
| 849.0 | 576.9 | ||
| Non-controlling interests | (0.0) | (0.0) | |
| Total equity | 14 | 849.0 | 576.9 |
| Non-current liabilities | |||
| Interest-bearing loans and borrowings | |||
| 75.4 | 75.6 | ||
| Employee benefits | 15 | 343.6 | 345.1 |
| Trade and other payables | 75.9 | 79.7 | |
| Provisions | 35.6 | 40.2 | |
| Deferred tax liabilities | 1.4 | 1.4 | |
| 531.9 | 542.0 | ||
| Current liabilities | |||
| Interest-bearing loans and borrowings | 9.8 | 11.3 | |
| Bank overdrafts | 0.3 | 0.2 | |
| Provisions | 19.7 | 22.4 | |
| Income tax payable | 16 | 99.7 | 41.7 |
| Trade and other payables | 17 | 683.7 | 734.7 |
| 813.2 | 810.3 | ||
| Total liabilities | 1,345.0 | 1,352.3 | |
| Total Equity and liabilities | 2,194.0 | 1,929.2 |
| Attributable to equity holders of the parent | |||||||
|---|---|---|---|---|---|---|---|
| In million EUR | Authorized & issued capital |
Treasury shares |
Other reserves |
Retained earnings |
Total | Non controlling interests |
Total equity |
| As per 1 January 2013 * | 508.5 | 0.0 | 214.6 | 3.7 | 726.8 | 0.0 | 726.8 |
| Profit for the period | 233.7 | 233.7 | 1.5 | 235.2 | |||
| Other comprehensive income Total comprehensive |
(53.5) | (3.7) | (57.3) | (57.3) | |||
| income | 0.0 | 0.0 | (53.5) | 230.0 | 176.4 | 1.5 | 178.0 |
| Capital Decrease | (144.5) | (144.5) | (144.5) | ||||
| Dividends (Pay-out) | (53.5) | (53.5) | (0.1) | (53.6) | |||
| Other | 9.1 | 1.5 | 10.6 | (1.4) | 9.2 | ||
| At 30 September 2013 | 364.0 | 0.0 | 116.6 | 235.2 | 715.8 | 0.0 | 715.8 |
* Due to the restatement for IAS19R, other reserves decreased by EUR 10.9m.
| Attributable to equity holders of the parent | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| In million EUR | Authorized & issued capital |
Treasury shares |
Other reserves |
Retained earnings |
Total | Non controlling interests |
Total equity |
||
| As per 1 January 2014 | 364.0 | 0.0 | 111.0 | 101.9 | 576.9 | 0.0 | 576.9 | ||
| Profit for the period Other comprehensive income Total comprehensive |
168.3 | 242.9 (101.9) |
242.9 66.4 |
1.9 | 244.8 66.4 |
||||
| income | 0.0 | 0.0 | 168.3 | 141.0 | 309.3 | 1.9 | 311.3 | ||
| Dividends (Pay-out) Other |
(40.0) 0.8 |
1.9 | (40.0) 2.8 |
0.0 (1.9) |
(40.0) 0.8 |
||||
| At 30 September 2014 | 364.0 | 0.0 | 240.2 | 244.8 | 849.0 | 0.0 | 849.0 |
| Year-to-date | 3rd quarter | ||||
|---|---|---|---|---|---|
| In million EUR | NOTES | 2014 | 2013 | 2014 | 2013 |
| Operating activities | |||||
| Profit before tax | 368.8 | 371.4 | 79.8 | 80.6 | |
| Depreciation and amortization | 63.7 | 66.0 | 21.5 | 22.4 | |
| Impairment on bad debts | 1.8 | 0.2 | 0.7 | 0.4 | |
| Gain on sale of property, plant and equipment | (9.4) | (15.4) | (4.7) | (12.4) | |
| Gain on sale of Certipost activities | 0.0 | (14.6) | 0.0 | 0.0 | |
| Change in employee benefit obligations | (3.8) | (27.8) | (2.0) | (9.3) | |
| Share of profit of associates | (8.9) | (14.1) | (2.6) | (1.9) | |
| Income tax paid | (64.8) | (62.0) | (61.2) | (60.9) | |
| Cash flow from operating activities before changes in working capital and provisions |
347.4 | 303.7 | 31.6 | 18.9 | |
| Decrease/(increase) in trade and other receivables | 62.9 | 70.7 | (26.1) | 2.3 | |
| Decrease/(increase) in inventories | (1.9) | (1.1) | (1.6) | (0.7) | |
| Increase/(decrease) in trade and other payables | (21.1) | (81.9) | (18.1) | (23.1) | |
| Deposits received from third parties | (0.2) | (0.0) | 0.0 | 0.0 | |
| Repayment of SGEI overcompensation | 0.0 | (123.1) | 0.0 | 0.0 | |
| Increase/(decrease) in other provisions | (7.4) | (8.2) | (2.6) | (4.0) | |
| Net Cash from operating activities | 379.7 | 160.1 (16.7) | (6.7) | ||
| Investing activities | |||||
| Proceeds from sale of property, plant and equipment | 11.3 | 24.2 | 5.6 | 20.1 | |
| Disposal of subsidiaries, net of cash disposed of | 0.0 | 15.1 | 0.0 | 0.0 | |
| Acquisition of property, plant and equipment | (48.8) | (31.4) | (24.3) | (9.4) | |
| Acquisition of intangible assets | (8.2) | (10.6) | (2.6) | (3.7) | |
| Acquisition of subsidiaries, net of cash acquired | 5 | (9.1) | (6.6) | (0.4) | (2.8) |
| Capital increase bpost bank | 0.0 | (37.5) | 0.0 | 0.0 | |
| Net cash used in investing activities | (54.8) | (46.8) | (21.7) | 4.1 | |
| Financing activities | |||||
| Payments related to borrowings and financing lease liabilities | (1.6) | 2.8 | (0.5) | (0.1) | |
| Capital decrease | 0.0 | (144.5) | 0.0 | 0.0 | |
| Dividends paid | (40.0) | 0.0 | 0.0 | 0.0 | |
| Exceptional dividend | 0.0 | (53.5) | 0.0 | 0.0 | |
| Dividends paid to minority interests | 0.0 | (0.1) | 0.0 | 0.0 | |
| Net Cash from financing activities | (41.6) | (195.3) | (0.5) | (0.1) | |
| Net increase in cash and cash equivalents | 283.3 | (82.0) | (38.9) | (2.6) | |
| Cash and cash equivalent less bank overdraft as of 1st January | 448.0 | 712.8 | |||
| Cash and cash equivalent less bank overdraft as of 30th September | 731.3 | 630.9 | |||
| Movements between 1st January and 30th September | 283.3 | (82.0) |
The interim condensed consolidated financial statements of bpost for the first nine months ended September 30, 2014 were authorized for issue in accordance with a resolution of the Board of Directors on November 3, 2014.
bpost and its subsidiaries (hereinafter referred to as "bpost") provide national and international mail and parcels services comprising the collection, transport, sorting and distribution of addressed and non-addressed mail, printed documents, newspapers and parcels.
bpost, through its subsidiaries and business units, also sells a range of other products and services, including postal, banking and financial products, express delivery services, document management and related activities. bpost also carries out Services of General Economic Interest (SGEI) on behalf of the Belgian State.
bpost is a limited-liability company under public law of Belgium. bpost has its registered office at the Muntcentrum-Centre Monnaie, 1000 Brussels.
These interim financial statements have not been subject to review by the independent auditor.
The interim condensed consolidated financial statements for the nine months ended September 30, 2014 have been prepared in accordance with IAS 34 Interim Financial Reporting.
The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with bpost's annual financial statements as at December 31, 2013.
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of bpost's annual financial statements for the year ended December 31, 2013, except for the adoption of new standards and interpretations effective as from January 1, 2014.
The following new standards and amendments, entered into force as from January 1, 2014, don't have any effect on the presentation, the financial performance or position of bpost:
IAS 32 – Financial Instruments: Presentation Offsetting of financial assets and financial liabilities
IAS 39 – Financial Instruments: Recognition and Measurement Novation of Derivatives and Continuation of Hedge Accounting
The following new IFRS Standards and IFRIC Interpretations, which are yet to become mandatory, have not been applied by bpost for the preparation of its interim condensed consolidated financial statements.
| Standard or interpretation | Effective for in reporting periods starting on or after |
|---|---|
| IFRS 9 – Financial Instruments – (issued on July 2014)(*) | 1 January 2018 |
| IFRS 14 – Regulatory Deferral Accounts (*) | 1 January 2016 |
| IFRS 15 – Revenue from Contracts with customers (*) | 1 January 2017 |
| IAS 19 – Amendment - Employee Benefits – Defined benefit plans: Employee Contributions (*) |
1 July 2014 |
| IAS 16 - IAS 38 – Amendments – Clarification of acceptable methods of depreciation and amortisation (*) |
1 January 2016 |
| IAS 16 - IAS 41 –Amendments -Agriculture: Bearer plants (*) | 1 January 2016 |
| IFRS 11- Amendment – Accounting for acquisitions of interests in Joint Operations (*) | 1 January 2016 |
| IFRS 10 – IAS 28 – Amendments –Sale or contribution of assets between an investor and its Associate or Joint Venture (*) |
1 January 2016 |
| IAS 27 – Amendments – Equity method in Separate Financial Statements (*) | 1 January 2016 |
| 1 July 2014 | |
| Annual improvements to IFRSs 2010-2012 Cycle (*) | |
| Annual improvements to IFRSs 2011-2013 Cycle (*) | 1 July 2014 |
| Annual improvements to IFRSs 2012-2014 Cycle (*) | 1 January 2016 |
| (*) Not yet endorsed by the EU as per date of this report |
bpost has not early adopted any other standard, interpretation, or amendment that was issued but is not yet effective.
IFRIC 21 has been endorsed by the EU in June 2014 and will be effective for the reporting periods starting on January 1, 2015 with voluntary retrospective application as at January 1, 2014. Implementation of IFRIC 21 will have mainly an impact on the seasonality of the results of bpost bank. bpost has decided to not reflect IFRIC 21 in the interim condensed consolidated financial statements ended at September 30, 2014.
Pursuant to the 5th Management Contract, bpost is the provider of certain SGEI. These services include, among others, the operation of the retail network, the distribution of newspapers and periodicals, the distribution of electoral materials, the acceptance of cash deposits at post offices and the home delivery of state pensions and social allowances. bpost is compensated for providing these services based on a net avoided cost ("NAC") methodology.
Compensation on SGEI is equally distributed over the four quarters. During the year calculations are made according to the Net Avoided Cost methodology to ensure the remuneration is in line with the amounts recorded. This methodology provides that compensation shall be based upon the difference in the net cost between bearing or not the provision of SGEI. The compensation for providing the SGEI is subject to a cap, which will be adjusted to the extent the Belgian consumer price index exceeds 2.2% in a given year.
A price adjustment of EUR 0.4m regarding the acquisition of 100% shares of Gout International BV and BEurope Consultancy BV has been agreed upon based on the final closing accounts of 2013 and has been paid in September 2014. The payment has no impact on the calculated goodwill.
The table below presents revenue information about bpost's operating segments:
| Year-to-date | 3rd quarter | |||
|---|---|---|---|---|
| In million EUR | 2014 | 2013 | 2014 | 2013 |
| MRS | 1,445.5 | 1,480.1 | 450.0 | 457.4 |
| P&I | 339.9 | 290.9 | 113.2 | 95.4 |
| Total operating income of operating | ||||
| segments | 1,785.3 | 1,771.0 | 563.2 | 552.7 |
| Corporate (Reconciling category) | 24.0 | 31.3 | 6.0 | 13.8 |
| Total operating income | 1,809.4 | 1,802.2 | 569.2 | 566.6 |
Revenues attributable to the MRS operating segment decreased by EUR 7.4m compared to the third quarter of 2013, to EUR 450.0m, mainly due to:
Growth of P&I revenues in the third quarter amounts to EUR 17.8m and is mainly attributable to the Parcels product portfolio, which increased by EUR 15.1m and is favorably influenced by
Inter-segment sales are immaterial. There is no internal operating income.
Excluding the remuneration received to provide the services as described in the Management Contract (see note 6), no single external customer exceeds 10% of bpost's operating income.
The following table introduces the revenues from external customers attributed to Belgium and to all foreign countries in total from which bpost derives its revenues. The allocation of the revenues of the external customers is based on their location.
| Year-to-date | 3rd quarter | ||||
|---|---|---|---|---|---|
| In million EUR | 2014 | 2013 | 2014 | 2013 | |
| Belgium | 1,571.1 | 1,635.0 | 485.0 | 507.0 | |
| RoW | 238.3 | 167.3 | 84.2 | 59.5 | |
| Total operating income | 1,809.4 | 1,802.2 | 569.2 | 566.6 |
The following tables present EBIT and EAT information about bpost's operating segments for the period ended September 30, 2014 and 2013:
| Year-to-date | 3rd quarter | |||
|---|---|---|---|---|
| In million EUR | 2014 | 2013 | 2014 | 2013 |
| MRS | 372.5 | 362.6 | 91.0 | 84.0 |
| P&I | 23.5 | 9.5 | 1.8 | (1.6) |
| Total EBIT of operating segments | 396.0 | 372.1 | 92.8 | 82.4 |
| Corporate (Reconciling category) | (18.7) | (8.2) | (9.8) | (0.9) |
| 82.9 | 81.5 | |||
| Total EBIT | 377.3 | 363.9 |
In the third quarter of 2014, EBIT of the MRS operating segment increased by EUR 7.0m to EUR 91.0m. The volume decline was more than compensated by price increases combined with productivity improvements and costs reduction.
EBIT attributable to the P&I operating segment improved by EUR 3.4m from negative EUR 1.6m to EUR 1.8m in the third quarter of 2014 mainly thanks to a positive impact of the settlement of terminal dues translating into increased margins combined with a better performance of the P&I subsidiaries.
| Year-to-date | 3rd quarter | ||||
|---|---|---|---|---|---|
| In million EUR | 2014 | 2013 | 2014 | 2013 | |
| MRS | 372.5 | 362.6 | 91.0 | 84.0 | |
| P&I | 23.5 | 9.5 | 1.8 | (1.6) | |
| Total EAT of operating segments | 396.0 | 372.1 | 92.8 | 82.4 | |
| Corporate (Reconciling category) | (151.2) | (136.9) | (40.0) | (28.6) | |
| Total EAT | 244.8 | 235.2 | 52.7 | 53.8 |
Financial income, financial costs, share of profit of associates and income tax expenses are all included in the reconciling category "Corporate".
The following table provides detailed information on the reconciling category "Corporate":
| Year-to-date | 3rd quarter | ||||
|---|---|---|---|---|---|
| In million EUR | 2014 | 2013 | 2014 | 2013 | |
| Operating Income | 24.0 | 31.3 | 6.0 | 13.8 | |
| Central departments (Finance, Legal, Internal Audit, CEO, …) |
(45.7) | (48.2) | (16.3) | (15.2) | |
| Other reconciliation items | 3.0 | 8.7 | 0.5 | 0.5 | |
| Operating expenses | (42.7) | (39.5) | (15.8) | (14.7) |
| category) | (18.7) | (8.2) | (9.8) | (0.9) |
|---|---|---|---|---|
| Share of profit of associates | 8.9 | 14.1 | 2.6 | 1.9 |
| Financial Results | (17.4) | (6.6) | (5.7) | (2.8) |
| Income Tax expense | (124.0) | (136.1) | (27.0) | (26.9) |
| EAT Corporate (Reconciling | ||||
| category) | (151.2) | (136.9) | (40.0) | (28.6) |
Profit from operating activities (EBIT) attributable to the Corporate reconciliation category decreased by EUR 9.0m to negative EUR 9.8m EUR for the third quarter of 2014 from negative EUR 0.9m for the third quarter of 2013. This deterioration is mainly driven by lower sales of buildings (EUR 7.7 m) and cost increase in the central departments (EUR 1.1m).
Assets and liabilities are not reported per segment in the company.
| Year-to-date | 3rd quarter | |||
|---|---|---|---|---|
| 2014 | 2013 | 2014 | 2013 | |
| In million EUR | ||||
| Turnover excluding the SGEI remuneration | 1,566.2 | 1,538.9 | 486.7 | 476.7 |
| SGEI remuneration | 228.3 | 227.8 | 76.1 | 75.9 |
| Total | 1,794.5 | 1,766.7 | 562.8 | 552.6 |
| Year-to-date | 3rd quarter | |||
|---|---|---|---|---|
| In million EUR | 2014 | 2013 | 2014 | 2013 |
| Gain on disposal of property, plant and equipment | 9.4 | 15.4 | 4.7 | 12.4 |
| Gain on disposal of activities | 0.0 | 14.6 | 0.0 | 0.0 |
| Benefits in kind | 0.0 | 0.2 | 0.0 | 0.1 |
| Rental income of investment property | 0.8 | 0.7 | 0.2 | 0.2 |
| Other rental income | 1.3 | 1.4 | 0.3 | 0.3 |
| Third party cost recovery | 1.7 | 2.1 | 0.6 | 0.7 |
| Other | 1.6 | 1.2 | 0.5 | 0.3 |
| Total | 14.8 | 35.6 | 6.3 | 14.0 |
The sale of the activity of electronics document exchange of Certipost to the Finnish group Basware per January 2013 generated a cash inflow of EUR 15.1m EUR and a gain of EUR 14.6m in the first quarter of 2013.
Gains on disposal of property, plant and equipment are mainly related to the sales of buildings. During the third quarter of last year the sale of a single building contributed EUR 11.4m.
| Year-to-date | 3rd quarter | |||||
|---|---|---|---|---|---|---|
| 2014 | 2013 | Change % | 2014 | 2013 | Change % | |
| In million EUR | ||||||
| Rent and rental costs | 51.2 | 52.5 | -2.5% | 16.9 | 18.2 | -7.2% |
| Maintenance and repairs | 54.1 | 51.7 | 4.6% | 18.1 | 17.3 | 4.6% |
| Energy delivery | 28.1 | 30.7 | -8.4% | 8.9 | 9.5 | -7.0% |
| Other goods | 14.5 | 15.2 | -4.6% | 4.9 | 5.7 | -13.2% |
| Postal and telecom costs | 4.1 | 4.8 | -15.8% | 1.4 | 1.6 | -12.7% |
| Insurance costs | 9.5 | 10.9 | -12.5% | 3.1 | 3.2 | -2.2% |
| Transport costs | 150.7 | 127.1 | 18.5% | 51.7 | 43.7 | 18.3% |
| Publicity and advertising | 9.4 | 13.3 | -28.9% | 3.0 | 3.7 | -18.8% |
| Consultancy | 8.8 | 11.8 | -25.9% | 3.5 | 3.4 | 4.8% |
| Interim employees | 23.6 | 21.6 | 8.9% | 8.6 | 6.2 | 38.4% |
| Third party remuneration, fees | 76.2 | 82.2 | -7.3% | 26.9 | 26.6 | 1.1% |
| Other services | 13.3 | 12.9 | 2.4% | 4.1 | 4.4 | -7.3% |
| Total | 443.4 | 434.9 | 2.0% | 151.0 | 143.4 | 5.3% |
In the first nine months of 2014 property, plant and equipment slightly decreased by EUR 7.6m, or 1.3%, to EUR 562.6m as of September 30, 2014. The decrease was due to depreciation and impairment of EUR 53m for the first nine months of 2014, transfers to assets held for sale of EUR 2.5m and transfer to intangible assets of EUR 1.9m partially offset by capital expenditures of EUR 48.8m as well as transfers from investment property of EUR 1.1m.
Intangible assets increased by EUR 3.8m, or 3.5%, to EUR 92.8m as of September 30, 2014, mainly due to the goodwill increase (EUR 4.9m), related to the acquisition of the new subsidiaries Gout International BV, BEurope Consultancy BV, Ecom Ltd and Starbase Global Logistics Inc.
Investments in associates increased by EUR 75.5m, or 22.1%, to EUR 416.9m as of September 30, 2014, reflecting the Company's share of bpost bank's profit for the first nine months of 2014 in the amount of EUR 8.9m and the increase in the unrealized gain on the bond portfolio in the amount of EUR 66.7m, reflecting an average decrease of the underlying yield curve by 62 basis points (bps). As of September 30, 2014, investments in associates comprised net unrealized gains in respect of the bond portfolio in the amount of EUR 223.3m, which represented 53.6% of total investments in associates. The unrealized gains were generated by the lower level of interest rates compared to the acquisition yields of the bonds. Unrealized gains are not recognized in the income statement but rather are recognized directly in equity in other comprehensive income.
Current trade and other receivables decreased by EUR 87.6m, or 21.9%, to EUR 312.6m as of September 30, 2014. The decrease was mainly driven by the settlement of the SGEI receivable for the last quarter of 2013 and the settlement of terminal dues from other postal operators.
Cash and cash equivalents increased by EUR 283.3m, or 63.2%, to EUR 731.6m as of September 30, 2014. This increase is mainly due to the normalized free cash flow (EUR 325.2m), partially offset by payment of a EUR 40.0m dividend during the second quarter.
Equity increased by EUR 272.0m, or 47.2%, to EUR 849.0m as of September 30, 2014 from EUR 576.9m as of December 31, 2013. The increase was mainly due to the realized profit of EUR 244.8 m and the fair value adjustment in respect of bpost bank's bond portfolio amounting to EUR 66.7m, partially offset by the payment of a dividend of EUR 40.0m.
| As of 30 September 2014 |
As of 31 December 2013 |
|
|---|---|---|
| In million EUR | ||
| Post-employment benefits | (77.4) | (78.2) |
| Long-term employee benefits | (116.8) | (116.1) |
| Termination benefits | (10.0) | (15.4) |
| Other long-term benefits | (139.4) | (135.4) |
| Total | (343.6) | (345.1) |
Employee benefits decreased by EUR 1.5m, or 0.4%, to EUR 343.6m as of September 30, 2014. The decrease mainly reflects:
Income tax payable increased by EUR 58.0m, to EUR 99.7m as of September 30, 2014 and is mainly explained by the accrued income taxes.
Current trade and other payables decreased by EUR 51.0m, or 6.9%, to EUR 683.7m as of September 30, 2014. This decrease was due to the decline of the trade payables by EUR 51.0m, or 36.9% in comparison with 31 December 2013 and the decrease in social security payables by EUR 18.1m, offset by the increase in advance payments by EUR 18.1m. The increase of the latter is a phasing element as settlement occurs at year-end. The decrease of the social security payables is mainly caused by a timing difference as 2013 full year social accruals (holiday pay, bonuses,...) have been paid during 2014.
As of September 30, 2014, bpost had 5,213 auxiliary postmen. At this stage, 53 auxiliary postmen initiated a lawsuit against the Company in the Brussels and Charleroi Labor Courts claiming equal salary and benefits by reference to baremic contractual employees performing the same work, mainly under the non-discrimination provisions set forth in Articles 10 and 11 of the Belgian Constitution. All claims and allegations are contested by bpost.
However, if the courts were to find that this principle is applicable and bpost is found to have violated it, the labor courts will most likely order bpost to increase the compensation of the auxiliary postmen to the level of relevant baremic contractual employees and it cannot be excluded that other employees could bring similar claims.
No significant events impacting the Company's financial position have been observed after the statement of financial position date.
bpost also analyzes the performance of its activities on a normalized basis or before non-recurring items. Non-recurring items represent significant income or expense items that due to their nonrecurring character are excluded from internal reporting and performance analyses. bpost strives to use a consistent approach when determining if an income or expense item is recurring or nonrecurring and if it is significant enough to be excluded from the reported figures to obtain the normalized ones.
A non-recurring item is deemed to be significant if it amounts to EUR 20m or more. All profits or losses on disposal of activities are normalized whatever the amount they represent. Reversals of provisions whose addition had been normalized from income are also normalized whatever the amount they represent.
The presentation of normalized results is not in conformity with IFRS and is not audited. The normalized results may not be comparable to normalized figures reported by other companies as those companies may compute their normalized figures differently from bpost. Normalized financial measures are presented below.
| OPERATING INCOME | Year-to-date | 3rd quarter | ||||
|---|---|---|---|---|---|---|
| In million EUR | 2014 | 2013 | Change % |
2014 | 2013 | Change % |
| Total operating income Disposal of selected activities of Certipost (1) |
1,809.4 | 1,802.2 (14.6) |
0.4% | 569.2 | 566.6 | 0.5% |
| Normalized total operating income | 1,809.4 | 1,787.7 | 1.2% | 569.2 | 566.6 | 0.5% |
| OPERATING EXPENSES | Year-to-date | Change | 3rd quarter | Change |
| In million EUR | 2014 | 2013 | % | 2014 | 2013 | % |
|---|---|---|---|---|---|---|
| Total operating excluding depreciation, amortization |
(1,368.3) | (1,372.4) | -0.3% | (464.7) | (462.7) | 0.4% |
| Normalized total operating expenses | ||||||
|---|---|---|---|---|---|---|
| excluding depreciation, amortization | (1,368.3) | (1,372.4) | -0.3% | (464.7) | (462.7) | 0.4% |
| EBITDA | Year-to-date | 3rd quarter | ||||
|---|---|---|---|---|---|---|
| 2014 | 2013 | Change % |
2014 | 2013 | Change % | |
| In million EUR | ||||||
| EBITDA | 441.0 | 429.9 | 2.6% | 104.4 | 103.9 | 0.6% |
| Disposal of selected activities of Certipost (1) | (14.6) | |||||
| Normalized EBITDA | 441.0 | 415.3 | 6.2% | 104.4 | 103.9 | 0.6% |
| EBIT | Year-to-date | 3rd quarter | ||||
|---|---|---|---|---|---|---|
| 2014 | 2013 | Change % |
2014 | 2013 | Change % |
|
| In million EUR | ||||||
| Profit from operating activities (EBIT) | 377.3 | 363.9 | 3.7% | 82.9 | 81.5 | 1.8% |
| Disposal of selected activities of Certipost (1) | (14.6) | |||||
| Normalized profit from operating | ||||||
| activities (EBIT) | 377.3 | 349.3 | 8.0% | 82.9 | 81.5 | 1.8% |
| PROFIT FOR THE YEAR (EAT) | Year-to-date | 3rd quarter | ||||
|---|---|---|---|---|---|---|
| 2014 | 2013 | Change % |
2014 | 2013 | Change % |
|
| In million EUR | ||||||
| Profit for the year | 244.8 | 235.2 | 4.1% | 52.7 | 53.8 | -1.9% |
| Disposal of selected activities of Certipost (1) | (14.6) | |||||
| Normalized profit of the year | 244.8 | 220.6 | 11.0% | 52.7 | 53.8 | -1.9% |
(1) In October 2012, the Company reached an agreement with the Finnish group Basware on the sale of the electronic document exchange activities of Certipost as of January 2013. Certipost continues its other activities (securing documents, digital certificates and Belgian electronic cards. The normalization of EUR 14.6m corresponds to the gain on the disposal of the activities. This disposal did not generate a tax charge, as Certipost has tax losses carried forward on which no deferred tax asset had been recorded.
| Year-to-date | 3rd quarter | ||||||
|---|---|---|---|---|---|---|---|
| 2014 | 2013 | Change % | 2014 | 2013 | Change % | ||
| In million EUR | |||||||
| Net Cash from operating activities | 379.7 | 160.1 | 137.1% | (16.7) | (6.7) | 151.4% | |
| Net Cash used in investing activities | (54.8) | (46.8) | 17.0% | (21.7) | 4.1 | -626.0% | |
| Operating free cash flow | 324.9 | 113.3 | 186.8% | (38.5) | (2.5) | 1412.8% | |
| Deposits received from third parties | 0.2 | 0.0 | 0.0 | 0.0 | |||
| Payment relating to the decision of the | |||||||
| European Commission (2) | 0.00 | 123.1 | -100.0% | 0.00 | 0.00 | ||
| Normalized operating free cash flow | 325.2 | 236.5 | 37.5% | (38.5) | (2.5) | 1412.8% |
(2) The amount of EUR 123.1m relates to the non-recurring payment of the alleged overcompensation for which a provision was recorded in 2012 covering the period 2011-2012.
| Year-to-date | 3rd quarter | ||||||
|---|---|---|---|---|---|---|---|
| 2014 | 2013 | Change % | 2014 | 2013 | Change % | ||
| In million EUR | |||||||
| IFRS Consolidated Net Profit | 244.8 235.2 | 4.1% | 52.7 | 53.8 | -1.9% | ||
| Results of subsidiaries and deconsolidation impacts | (16.4) | (34.7) | -52.9% | (1.2) | (2.0) | -41.1% | |
| Differences in depreciation and impairments | (6.1) | (4.6) | 33.4% | (1.8) | (0.5) | 252.2% | |
| Differences in recognition of provisions | (8.1) | (8.9) | -9.5% | (2.8) | (2.4) | 15.0% | |
| Effects of IAS19 | (2.8) | (27.5) | -89.8% | (3.5) | (8.3) | -58.0% | |
| Deferred taxes | 7.5 | 15.0 | -49.8% | 3.2 | 4.1 | -21.3% | |
| Other | (0.9) | 1.0 | -191.8% | (0.2) | 0.2 | -179.0% | |
| Belgian GAAP unconsolidated net profit | 218.1 175.5 | 24.3% | 46.6 | 44.9 | 3.9% |
The Company's unconsolidated profit after taxes prepared in accordance with Belgian GAAP can be derived from the consolidated IFRS profit after taxes in two stages.
The first stage consists of un-consolidating the profit after taxes under IFRS, i.e.:
The table below sets forth the breakdown of the above mentioned impacts:
| Year-to-date | 3rd quarter | |||
|---|---|---|---|---|
| 2014 | 2013 | 2014 | 2013 | |
| In million EUR | ||||
| Disposal of selected activities of Certipost | (14.6) | |||
| Profit of the Belgian fully consolidated subsidiaries (local GAAP) | (6.1) | (2.6) | (1.4) | (0.1) |
| Profit of the international subsidiaries (local GAAP) | (6.5) | (3.6) | (2.6) | (0.8) |
| Share of profit of bpost bank (local GAAP) | (8.4) | (13.8) | (2.5) | (1.8) |
| Other deconsolidation impacts | 4.6 | (0.1) | 5.3 | 0.7 |
| Total | (16.4) | (34.7) | (1.2) | (2.0) |
The second stage consists of deriving the Belgian GAAP figures from the IFRS figures and is achieved by reversing all IFRS adjustments made to local GAAP figures. These adjustments include, but are not limited to the following:
for the impact of changes in the discount rates for the future obligations, which is recorded as a financial result;
The bpost Management Committee declares that to the best of its knowledge, the condensed consolidated financial statements, established in accordance with International Financial Reporting Standards ("IFRS"), give a true and fair view of the assets, financial position and results of bpost and of the entities included in the consolidation.
The financial report gives an accurate overview of the information that needs to be disclosed pursuant to article 13 and 14 of the Royal Decree of 14 November 2007.
The bpost Management Committee is represented by Koen Van Gerven, Chief Executive Officer and Pierre Winand, Chief Financial Officer.
The information in this document may include forward-looking statements6 , which are based on current expectations and projections of management about future events. By their nature, forwardlooking 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.
6 as defined among others under the U.S. Private Securities Litigation Reform Act of 1995
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