bpost SA/NV — Investor Presentation 2015

Nov 5, 2015

Third quarter 2015 results Analyst call

Koen Van Gerven, CEO Koen Beeckmans, CFO

Brussels – November 6, 2015

Investor presentation - Interim financial report 3Q15

Financial Calendar

More on www.bpost.be/ir

03.12.2015 (17:45 CET) Results first 10 months 2015

08.12.2015 Ex-dividend date (interim dividend)

10.12.2015 Dividend payment date

09.03.2016 (17:45 CET) Annual results FY2015 02.05.2016 (17:45 CET) Quarterly results 1Q16

11.05.2016 Ordinary General Meeting of Shareholders

17.05.2016 Ex-dividend date

19.05.2016 Payment date of the dividend 08.08.2016 (17:45 CET) Quarterly results 2Q16

09.11.2016 (17:45 CET) Quarterly results 3Q16

05.12.2016 (17:45 CET) Results first 10 months 2016

Disclaimer

This presentation is based on information published by bpost in its Third Quarter 2015 Interim Financial Report, made available on November, 5th at 5.45pm CET on www.bpost.be/ir. This information forms regulated information as defined in the Royal Decree of 14 November 2007. The information in this document may include forward-looking statements1, which are based on current expectations and projections of management about future events. By their nature, forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of the Company. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no assurance is given that such forward-looking statements will prove to have been correct. They speak only as at the date of the Presentation and the Company undertakes no obligation to update these forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. This material is not intended as and does not constitute an offer to sell any securities or a solicitation of any offer to purchase any securities.

Highlights of 3Q15 – Strong results

Revenues down 3.3%

• Improved Domestic Mail performance and solid Parcels contribution, offset by lower SGEI compensation and management decision to curtail some International Mail activities with positive impact on EBIT

Improved underlying Domestic Mail volume trend

• Driven by pick up in Advertising Mail and better performance in Press

Excellent Domestic Parcels growth

• Domestic: record quarterly volume performance (e-commerce and C2C driven) against an already very strong quarter last year (+10.3%). Price/mix effect at -3.1%
• International: continued organic growth from US, positive FX contribution, but slower growth from and to China

Significant cost savings and strong productivity improvement

Costs (excl. one-offs) down by 6.1% with average FTE reduction of 854 •	€ -28.4m
Normalized EBITDA up € 9.6m. Reported EBITDA impacted by Alpha social plan restructuring provision of EUR 54.5m.	€ 114.0m
Normalized BGAAP net profit of bpost SA/NV up € 4.7m	€ 51.3m

Outlook

• Ambition to maintain at least stable recurring EBIT(DA) and dividend versus high level of 2014

-4.7%

€ 550.5m

+13.5%

€ +4.2m

Improved domestic mail trend combined with important cost reduction and excellent growth in parcels resulted in strong EBITDA uplift

4

Normalized, € million

Summary of key financials

€ million

	Reported		1 Normalized
	3Q14	3Q15	3Q14	3Q15	% Δ
Total operating income (revenues)	569.2	550.5	569.2	550.5	-3.3%
Operating expenses	464.7	491.0	464.7	436.5	-6.1%
EBITDA	104.4	59.5	104.4	114.0	9.1%
Margin (%)	18.3%	10.8%	18.3%	20.7%
EBIT	82.9	37.1	82.9	91.6	10.5%
Margin (%)	14.6%	6.7%	14.6%	16.6%
Profit before tax	79.8	37.6	79.8	92.1	15.5%
Income tax expense	27.0	11.6	27.0	30.0
Net profit	52.7	26.0	52.7	62.1	17.7%
FCF	(38.5)	(29.5)	(38.5)	(29.5)	23.4%
bpost S.A./N.V. net profit (BGAAP)	46.6	15.2	46.6	51.3	10.0%
Net Debt/ (Net cash), at 30 September		(645.9) (690.6) (645.9) (690.6)			6.9%

Alpha social plan provision of

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

Total operating income (revenues)

Normalized, € million

		3Q14 reported	Reclassifi cations2	3Q14 comparable	SGEI	Organic	3Q15	% Org
	Transactional mail	209.3	0.6	210.0	-	-7.2	202.8	-3.4%
Domestic mail	Advertising mail	58.3	-0.2	58.1	-	-1.9	56.1	-3.3%
	Press	74.3	-	74.3	-3.0	-0.3	71.0	-0.3%
	Domestic parcels1	35.2	-0.8	34.4	-	3.4	37.8	9.8%
Parcels	International parcels	34.8	-0.9	33.9	-	4.2	38.1	12.5%
	Special logistics	2.9	-0.3	2.6	-	-0.2	2.4	-8.0%
Additional sources of revenues	International mail	48.5	-1.0	47.5	-	-7.6	40.0	-16.0%
	Value added services	22.9	-0.8	22.1	-	1.3	23.3	5.9%
	Banking and financial	50.6	-	50.5	-0.1	0.3	50.6	0.5%
	Other	26.4	3.5	29.9	-1.0	-2.2	26.7	-7.4%
	Corporate	6.0	-	6.0	-	-4.3	1.6	-72.4%
TOTAL		569.2	-	569.2	-4.2	-14.5	550.5	-2.5%

¹ Defined as domestic and Belgian in- and outbound

² Some intercompany eliminations mainly related to international activities previously reported in Other revenues are now being reported under their corresponding product lines.

Following a correction of the allocation of cash sales (stamps and franking machines) to products as of January 1, 2015 some revenues are shifting from Domestic parcels to Transactional mail.

Better domestic mail underlying volume decline at -4.7% driven by advertising mail and press

Total operating income (revenues), normalized, € million

• Underlying volume decline at -4.7%
• Transactional mail: all products impacted by weaker holiday period volumes and continued e-substitution but no notable acceleration
• Advertising mail: improved performance across all sectors compared to 1H15 (-7.9%) mainly in direct mail
• Press: improved trend, especially in periodicals

	Reported				Underlying1,2
	1Q15	2Q15	3Q15	YTD15	1Q15	2Q15	3Q15	YTD15
Transactional mail	-5.0%	-5.8%	-5.3%	-5.4%	-5.3%	-5.3%	-5.9%	-5.5%
Advertising mail	-6.9%	-15.4%	-3.2%	-8.9%	-5.9%	-9.9%	-2.4%	-6.3%
Press	-3.1%	-4.0%	-0.1%	-2.5%	-3.1%	-4.0%	-0.1%	-2.5%
Domestic Mail	-5.3%	-7.6%	-4.4%	-5.8%	-5.3%	-6.1%	-4.7%	-5.4%

¹ In terms of working days, 3Q15 had 1 business working day more whereas 4Q15 will be equal to same quarter of 2014.

² Corrected for requalification of advertising mail to administrative mail.

7

8

Excellent volume performance in domestic parcels but slower growth in international parcels

Total operating income (revenues), normalized, € million

Additional sources of revenues mainly impacted by the curtailment of the international mail activities

Total operating income (revenues), normalized, € million

Significant cost savings with productivity improvement in line with plans and first contribution of Alpha

Operating expenses excl. depreciation and amortization, normalized, € million

Operating free cash flow1 of € -29.5m in 3Q15

Reported, € million

€ million	3Q14	3Q15	Delta
Cash flow from operating activities	-16.7	-6.0	+10.8
Cash flow from investing activities	-21.7	-23.5	-1.8
Operating free cash flow1	-38.5	-29.5	+9.0
Financing activities	-0.5	-0.2	+0.2
Net cash movement	-38.9	-29.7	+9.2
Capex	+26.9	+24.9	-2.0
When excluding the Alpha provision2: Better results of operating activities (€ +14.2m) Deterioration in working capital vs. 3Q14 (€ payment terms for social security charges for statutory personnel (€	-3.4m) mainly due to the change in	-8.4m – -3.6m). These elements were only partially compensated by	phasing)

• Price adjustment in 3Q14 for acquisition subsidiaries (€ +0.4m)
• Lower capital expenditures (€ +2.0m) and lower proceeds sale of buildings (€ -4.2m) in 2015
• 1 Operating free cash flow = cash flow from operating activities + cash flow from investing activities
• 2 Alpha provision amounts to € 54.5m of which € 7.6m is incorporated in 'employee benefits' provisions and € 46.9m in working capital (social debts)

Strong balance sheet structure

€ million

Assets			Equity and liabilities
	2,121.8	2,197.5	Interest-bearing loans & borrowings	2,121.8 75.6	2,197.5 75.0 64.5
Cash & cash equivalents	562.3	765.9	Provisions	64.8
Other assets Investments in	74.4 416.5	73.6	Trade & other payables	931.4	888.9
associates Trade & other		384.8			355.9
receivables Inventories	400.8 12.5	332.4 11.2	Employee benefits	368.6
PPE & intangible assets	655.2	629.6	Total equity	681.4	813.1

Sept 30, 2015 Dec 31, 2014

Sept 30, 2015 Dec 31, 2014

Outlook for 2015

We expect underlying Domestic Mail volume decline to be less than -6%.

The compensation for the SGEI (management contract) will be € 16.5m lower than in 2014 as the government has decided to reduce the compensation above and beyond the already lower contractual cap.

We now expect Domestic Parcels volume growth to hit double digits for the full year. We also expect continued growth in the US parcels segment. Milk powder volumes to China are expected to remain stable.

Productivity improvements are on track and will deliver as expected at the low end of our 800 to 1,200 FTE/year range, including the first contributions of Alpha.

We will maintain recurring EBITDA at least at the high level achieved in 2014, thanks to the partial effects of the Alpha plan and a continued focus on costs.

We confirm our ambition to achieve at least the same level of dividend payment.

Cash generation should follow normal seasonality and net capex is expected below € 90m (excl. acquisitions). Working capital evolution will be negatively affected by the favorable phasing on terminal dues payment in 2014 and tax payments relating to 2013.

Key contacts

Baudouin de Hepcée Director External Communication, Investor Relations & Public Affairs	Email: baudouin.dehepcee@bpost.be • • Direct: +32 (0) 2 276 22 28 Mobile: +32 (0) 476 49 69 58 • • Address: bpost, Centre Monnaie, 1000 Brussels, Belgium
Saskia Dheedene Manager Investor Relations	• Email: saskia.dheedene@bpost.be • Direct: +32 (0) 2 276 76 43 Mobile: +32 (0) 477 92 23 43 • • Address: bpost, Centre Monnaie, 1000 Brussels, Belgium