roadshow asia - le groupe la...
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• This document has been prepared by La Poste solely for use for general investor presentations. This document is not to be reproduced by any person, nor be distributed to any person other than its original recipient. La Poste takes no responsibility for the use of these materials by any person.
• This document does not constitute or form part of any solicitation, offer or invitation to purchase or subscribe for any Notes.
• The information contained in this document has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance may be placed for any purposes whatsoever on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the La Poste, or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.
• Certain statements in this document are forward-looking, including statements concerning La Poste’s plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, business strategy and the trends La Poste anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. By their nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. La Poste does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. Such forward-looking statements speak only as of the date on which they are made. Any opinions expressed in this document are subject to change without notice and La Poste does not undertake any obligation to update or revise any forward looking statement, whether as a result of new information, future events or otherwise.
Disclaimer
PAGE 2
Supportive, stable and long-term shareholders
Article 1 of Act 2010-123 of 9 February 2010
The share capital shall be held by the State & by other public sector legal entities1
100%
26.32% Employee representatives
Users representative
CDC representatives
Nominated by decree
Nomination proposed by Government and/or CDC
Municipalities representative
State representatives
State representation in the Board of Directors
Government commissioner +
Head of the State's Economic and Financial
Verification Mission
Assisting with no voting right
73.68%
The French government
Chairman & CEO
1) Except for the portion that may be held under employee shareholding arrangements
Nominated by decree
Elected by employees
Active participation of shareholders and public
entities in Group
strategy and business plans
PAGE 5
100% state-owned company
Key role of La Poste in France: 4 public service missions
Public service contract 2013-2017 and specific agreements between the French State and La Poste
• Partial compensation schemes for regional planning, press and banking accessibility
• EU compatible
Universal Postal Service
Press transport and delivery
Banking accessibility
Regional planning and development
Additional missions entrusted by the French State
Distribution of press and periodicals: • 6 days a week • all over the territory • at affordable prices (regulated)
• > 17,000 contact points by law
• Presence in priority areas (rural, underprivileged, mountain areas)
Mail collection and delivery to all points in the territory at affordable prices and at a determined quality
6 days a week
La Banque Postale is required:
• to open a Livret A savings account to any individual
• to operate free of charge cash withdrawals or deposits from €1.50
EU Directive La Poste designated
Universal Postal Service provider
PAGE 6
2000’s 2010’s
Very strong historical link with the State
90’s
2010 2011
In law
Entering the local
authorities financing market
Participation in French “plan
de relance”
Capital increase subscribed
by State & CDC
2012 2005
Creation of La Banque
Postale
From a State administration to an EPIC1
2013 2017 1991
Boosting social home ownership programs
In b
usin
ess
2006
Public
serv
ice
mis
sio
ns
2007 2008 2009 2014
Public service contract 2013-2017
2015 2016
Public limited
company2
Public service contract 2008-2012
Acts
/ D
ecre
es
Postal Act Creation of ARCEP
+ specific agreements covering each mission
Operator of Vital
Importance
Postal Act 4 missions reaffirmed
in law
La Poste, designated provider of the Universal Service for 15 years as from 1 January 2011
New decrees on •Universal Postal Service •Banking accessibility
Status
1) EPIC: public industrial and commercial establishment 2) French legal status of public limited company, i.e. “Société Anonyme”
XVth century
Louis XI
In
vo
lvem
en
t o
f S
tate
PAGE 7
La Poste Network servicing all business units through 17,111 retail outlets
(see appendix)
GeoPost La Banque Postale Services-Mail-Parcels Digital Services
* JV co-owned by La Poste (51%) and SFR (49%), not included in Group revenue following application of IFRS 11 as of 1/1/2014. 1.25m customers, €202m in revenue in 2015 ** Group employees in full time equivalent on average
*
Major multi-business services Group…
€23.045bn
Revenue 2015
€875m
EBIT 2015
A key employer 253,158 employees**
Strong international presence 20.8% revenue – ~23,500 employees** abroad
PAGE 8
Revenue 2
015
Mail and Parcel market, mainly in France
European CEP market
Retail banking in France
€11.5bn €5.7bn €5.7bn
Mark
et
€0.6bn
Internet-based services
48.6% of Group revenue 24.3% of Group revenue 24.9% of Group revenue 2.0% of Group revenue
Retail banking
Insurance
Asset management
4 main brands BtoB Marketing
solutions
Retail products & e-services
BtoB secure & digitised solutions
Logistics International
Services Parcels
Div
isio
ns
~24,000
1) Through partnership with Post Office Ltd 2) Revenue and geographic split based on 9M 2016 financial report, to reflect disposal of €0.4bn logistics subsidiary (trans-o-flex) in Germany early 2016 in business portfolio
Number of outlets/ outsourcing rate1
17,111 ~1,300 ~ 11,5001
46% 100% 97% 0% 100%
~13,200 2,700
50%
~2,200
33%
1,800
72%
Express Mail & Postal parcels Logistics Financial services Other services
9
49% 42%
83% 82%
100% 96%
27%
11%
24%
17%
22%
2%
14%
4%
50%
25%
26%
9%
87%
2%
19% 9%
1%
… with a unique diversification profile
€23bn
21%
€8bn
14%
Revenue 2015 / % international
€13bn
17%
€2bn
16%
€4bn
27%
€59bn €31bn
70% NS
€2bn
17%
Performance Growth
Ensure sustainable cash generation
Accelerate existing activities
Capture new markets
External growth
“La Poste 2020: Conquering the future”
PAGE 10
Strategic plan 2014-2020
Mail prices Public service Social Pact
€11.5bn
International 5%
Logistics 6%
Parcels 14%
Services <1%
Mail 74%
Employees Revenue EBIT
~142,000 €697m
Presentation of the business unit (2015 figures)
PAGE 12
Services-Mail-Parcels
Unique door-to-door everyday services
Market positions1 Key strengths
Parcels
Logistics
International
1) Source: ARCEP for mail, internal for parcels and cross-border
• ~72,200 postmen, 100%
connected with smartphones
paying daily visits (6
days/7) to 26m households
• Trust capital
• Parcel expertise particularly
during peak periods
#1 addressed mail
#1 unaddressed mail
#1 BtoC parcels
#1 press delivery
Top 2 Europe (through Asendia JV)
Key metrics
12bn addressed mail
10bn unaddressed
~270m parcels
1.2bn press copies shipped
Presence in 15 countries
Market dynamics
Decline in addressed mail volumes - in bn items -
15.8 15.4 14.5 13.7 12.9 12.0
9.0
2010 2015 2020
-24.0%
PAGE 13
Services-Mail-Parcels
Firmly entering the local services market
Strategy
• Remain a key operator in the mail business while activating tariff lever
• Benefit from strongly growing e-commerce parcels: extended delivery possibilities (evening) and sending options (from one’s letterbox)
• Capture growth in new segments: local and in-home services, silver economy, recycling Develo
pm
ent
Perf
orm
ance
• Adapt the number of facilities to mail volume decline
• Continuous rationalization of logistic network
• Productivity
Increasing need for in-home services
E-commerce growth driving parcels market
In €bn
Source : internal for mail volumes (Group delivered mail volumes) ; Source : ICE/Fevad for e-commerce
78% outside France
€5.7bn
Key strengths Market positions**
Employees Revenue EBIT Parcel volume
~28,000 Inc. 22,000
outside France
€367m*
Presentation of the business unit (2015 figures)
PAGE 14
GeoPost European express leader
with strongly differentiating assets
* Published EBIT : €268m, restated €EBIT : 367m restated for provision linked to inquiry of Competition Authority in the French CEP market (appeal currently underway) ; ** CEP: Courier-Express-Parcels - Source: internal study
#1 Russia
Partnerships
Presence of GeoPost
#1 non-postal CEP operator UK
#1 Poland
#1 non-postal CEP operator in France #1 PUDO
#1 Spain
#1 Ireland #2 Germany
#2 (DTDC)
• The most extensive interconnected road network in Europe for deferred parcels <31.5kg
• A hybrid network that addresses BtoB as well as BtoC
• Innovative last-mile solutions (Pickup PUDOs / parcels lockers / Predict interactive delivery option)
• Operational excellence
#2 Europe
2010 2011 2012 2013 2014 2015
781 865
1,006
BtoB ~70%
~30%
BtoC
676 598
724
+100%
BtoC
E-commerce E-commerce BtoC in Western Europe in €bn*
118 161 183 208 233
International
2011 2015e 2014 2013 2012
Market dynamics
PAGE 15
* Source eCommerce Europe
Strategy
• Capture BtoC growth: keep innovating in premium delivery solutions (in-home, out-of home)
• Expand in new markets: fresh food delivery, same-day, medical temperature-controlled logistics
• Selected acquisitions in existing and new countries
Develo
pm
ent
Perf
orm
ance
• Maximize first-time delivery success rate
• Tight control on cost structure
• Monitor profitability of external growth operations
GeoPost Capturing e-commerce growth worldwide
Competition
• Strong liquidity position: L/D ratio 75%, LCR 218%
• Sound capitalization: CET1 13.2%, Tier 1 14.7%, total capital 18.7%
• Quality of assets confirmed by the ECB’s AQR (CET1 phased-in ratio of 7.625% by 1/1/2017)
€5.7bn
Insurance 3%
Asset management 3%
Retail banking 94%
Employees NBI EBIT
~4,000 direct & ~25,000 (1)
through La Poste €851m
Presentation of the business unit (2015 figures)
La Banque Postale Resilient and stable retail banking activities
(1)~15,000 in La Poste Financial Services (Financial centres, IT Division for Financial Services & Network) , ~10,000 advisors in post offices ; (2) Very popular passbook savings account ; (3) Source AFG (French Asset Management Association) 2014
23 12
1620
12 20
24
6992
75 75
Assets Liabilities
219 219
Regulated savings
centralized at CDC
Loans to customers
Customer deposits (excl. regulated savings)
Equity & hybrids Other assets
HTM portfolio
Short term assets
Short term liabilities
AFS portfolio Other liabilities
Regulated savings centralized at CDC
(**) Customer
deposits: €167bn
(**)
Key s
tren
gth
s
• Large domestic franchise (10.8m active customers) with low risk profile
• Significant market shares e.g. on savings outstandings (23.7% on Livret A (2)) and home loans production (6.1%)
• #5 asset management player (€180bn AuM)3
Balance sheet (€bn)
• Strong potential in customer equipment due to progressive authorizations from the regulator:
PAGE 16
2006
Home loans
2007 2009 2011 2012
Consumer loans
Property & casualty
insurance
Corporate loans
Public sector loans
Market dynamics
Low rates
environment
PAGE 17
La Banque Postale Priority on business development
Strategy
• Accelerate business development in the retail banking market (young, high-net-worth clients)
• Become a bank for professionals (dedicated unit in place)
• Enhance the corporate business and become a leading reference bank in the local public sector market
• Develop the asset management and the insurance activities Develo
pm
ent
Perf
orm
ance
• Major transformation programs (IT) underway
• Roll-out an intense training program (70,000 employees of LBP / La Poste Network by 2020)
• Efficiency plan in Financial centers
* Source : SOFIA March 2015
Prudential
regulation
New forms of
competition
Revenue
Presentation of the business unit (2015 figures)
BtoB Marketing Solutions
17%
75% BtoB Secure & Digital
Solutions
Retail Products & E-Services1 8%
€560m
1) Billings to other business units accounted for in 2015 revenue (since 1 January)
PAGE 18
Digital Services A dedicated business unit, lever for
development & internal transformation
Market positions
• 1st e-Health Services Provider in France
• 1st Data Base in France (36 million addresses)
• www.laposte.fr is #11 of the top 100 French e-commerce websites
Market dynamics
Cloud
Growth of online
platforms
Big data
Value / Monetization
of audience and customer data
Digital
Development of hybrid / digital service offers
IoT
Connected objects
Strategy
• Speed up the ongoing digital transformation of La Poste
• Win high-value market segments (e-health, e-administration, IoT)
• Roll-out unique infrastructures supporting all business units
Revenue
Operating profit after share of net profit from companies under joint control
Operating margin
Financial result
Income tax
Share in profits of equity associates
Net profit Group share
11,770 11,459
H1 2016
H1 2015
852 616
7.2% 5.4%
675 424
-92 -74
-148 -217
88 113
In €m
PAGE 20
Consolidated P&L – H1 2016 key financials
+2.7%
∆
in %
+38.3%
+1.9pt
+59.4%
-23.5%
+31.5%
-22.3%
+2.2% at constant change and scope
+11.2% excluding one-offs1
+28.5% excluding one-offs1
1) +€107m capital gain from the sale of La Banque Postale stake in Visa Europe and +€60 million securities revaluation after the acquisition by GeoPost of the remaining 50% share of Armadillo. 2) Average 4-year cost of debt (2016-2019) after active management
-€19m mainly due to change in fair value
of debt
1) After share of net profit/(loss) of companies under joint control
Revenue (in €m) EBIT1 (in €m)
Mail Parcels Subsidiaries
5,757 5,747
Servic
es-M
ail-P
arcels
256 264770 791
4 732 4 692
Subsidiaries
9
Parcels
21
40
H1 2015
-0.2%
-0.2% at constant scope and exchange rates -0.9%
504 508
H1 2016
407
93 102
398
H1 2016 H1 2015
8,7 3,5 Addressed volumes:
-5.3%
H1 2016 key financials
per business line
PAGE 21
Geo
Po
st
Other Exchange rates
H1 2016
+10.3% +9.2% at constant scope and exchange rates
Volume/mix incl. working
days
H1 2016 H1 2015
285
Scope
57 2 969
92
H1 2015
1 43
Price
2 693 EBIT inc. €60m from a securities reevaluation on Armadillo (DPD Russia)
+48.1%
Volumes +10.8% (organic) o/w: +15% France +14% Spain
Mainly on UK pound (€34m)
La B
an
qu
e P
osta
le
1) Including impact of change in home savings provision (€132m in 2014, €63m in 2015, €70m in H1 2015 and €212m in H1 2016) 2) CoR/outstanding relative to credit business (i.e. excl. Insurance and toll)
Net banking income / Revenue (in €m)
22
25
Asset management
6
Retail banking1
H1 2015
2 929
H1 2016
2 975
Scope Insurance
5
+1.6%
Profitability
81.5% 80.7%
(CoR/outstanding)
0.19% 0.19%
EBIT
CoR2
Operating ratio
o/w: - Net interest margin - Commissions
H1 2016 key financials
per business line
PAGE 22
Dig
ital S
ervic
es
H1 2016
289
Interco.
3
Mediapost communication
2
Docapost
9
Digital Services
3
H1 2015
278
+4.0%
+3.1% at constant scope and exchange rates
H1 2016 H1 2015
+€9m
o/w laposte.fr website dvpmt & associated
ad revenue
E-billings, dematerialization
Data management
services
-6.3% at constant scope and excl. home savings provision
PAGE 23
401
-80
173
Net debt change
10
Cash flow from operating activities
662
Others
70
External growth
99
Asset disposals
20
Interest and dividends
29
CAPEX
Services-Mail-Parcels: IT
GeoPost: logistic network (new hubs and depots), IT
Network: modernization/layout of network
Digital Services: IT
Real Estate: modernization and maintenance
Support & Structures: Vehicles, including electric
401
H1 2016 figures - In €m
(1) CFO excluding banking, including dividends from equity associates ; (2) Gross Capex excl. Banking (€401m) net from vehicle disposals (€10m) ; (3) Excluding vehicle disposals; (4) Including acquisition of financial assets
1
2 3 4
Mainly accrued interests
Net debt change H1 2016
Equity1,2 Net debt1
1) 2013, 2014 pro forma data: published data restated for IFRS 10 and 11 impacts; does not take into account the banking activity for which the concept is not relevant 2) Group share
Net debt1 / Equity1,2
1.361.08
0.67 0.46 0.44 0.44 0.380.36
2009 2010 2011 2012 2013 2014 2015 H12016
4,051 4,465
6,7837,47
8,6159,112
9,723 10,293
2009 2010 2011 2012 2013 2014 2015 H12016
5,5174,804 4,544
3,463,805 4,005
3,657 3,737
2009 2010 2011 2012 2013 2014 2015 H12016
(in €m)
(in €m)
PAGE 25
Balance sheet highlights
Real estate
One of the largest real estate portfolio
after the State
~€4bn in 2015
Largest item on the Group balance sheet
High-quality, highly diversified
assets
• 11,362 buildings / facilities
• 6.5 million m², 57% directly owned
From small post offices to very large facilities
(from 9 to 39,000 m2 )
Average maturity
Strong footprint on the bond market
Maturity Issue date Amount
(€m)
Euro Bonds
Jul. 2017 Jul. 2002 600
Jun. 2023 Jun. 2003 1,000
Jul. 2019 Jul. 2004 800
Nov. 2021 Nov. 2006 1,000
Feb. 2018 Feb. 2008 500
Nov. 2024 Nov. 2012 1,000
June 2025 Jun/Sept 2015 750
GBP Bonds
Dec. 2016 Dec. 2000 242
1) 2016-2019 average cost of debt (as at 30/06/2016)
€6.774bn gross debt at 30 June 2016
Mainly euro-denominated bonds
Smooth redemption profile with no refinancing wall
242
600
500
800
1000
2017 2019 2021 2023
1000 1000
Predictability & stability of interest expense
100% foreign currency hedge
€5.892bn nominal value of
bond debt at 30 June 2016 Foreign currency-denominated debt
issues are systematically hedged using currency swaps
€m
2024 2018 2016
750
2025
5.32y
~80%
Cost of debt1 2.66%
% Fixed-rate
Strong ratings
A / A-1 / Stable
A+ / F1 / Stable
Bonds (90.3%)
Savings La Poste (0.9%)
Short term commercial (papers 0%)
Deposits and guarantees (3.7%)
Other (5.2%)
A low risk capital structure given currency, maturity & interest profile
PAGE 26
€3.037bn
Strong liquidity
Cash & other asset items H1 2016
€725m €200m
Bilateral line with LBP
2018 2019
€300m
Overdraft facility with LBP
Renewed tacitly annually
French commercial paper
€1.5bn €500m
European commercial paper
Significant liquidity sources
Syndicated loan €650m + bilateral line with
BNPP €75m
PAGE 27
Long-term Short-term
Secure investment policy
• Investment in interest-bearing accounts, term deposits and ≥ A2/P2 short-term debt securities
• Credit risk controlled by a system of limits, of which:
Maximum nominal amount not to exceed
Maximum loss limit
Undrawn Undrawn
Liquid, secure and diversified liquidity position Significant committed & undrawn resources
Undrawn
Le Groupe La Poste’s fundamental strengths
In-depth transformation of the Group underway
Solid balance sheet along with active debt management:
reduced debt leverage
Stable long-standing shareholding structure
(by law), critical role for the French State
Major market-leading businesses with unique assets and positions
Low business risk profile thanks to an unprecedented diversification model and a balanced activities portfolio
Strong credit profile
PAGE 28
Financial information available on http://legroupe.laposte.fr/en/Finance
PAGE 30
Yasmina Galle Head of Investor Relations and Financial Communication
[email protected] +33 (0)1 55 44 17 02
Characteristics
Exceptional capillarity 17,111 retail outlets in France o.w. 46% partnerships
85% of French people go to the post office
~56,000 employees
Presentation of the business unit (2015 figures)
Commercial activity of La Poste Network
18%
of Mail revenue
94%
of La Poste Mobile sales
26%
of Parcels revenue
100%
of net collection for individuals
83%
of property loans1
70%
of consumer loans
of Chronopost revenue
8%
96.7% of French population at less than 5km of an outlet
PAGE 32
La Poste Network Supporting commercial development
La Poste Mobile* (launched in 2011)
1.24 million clients
+8% vs 2014
€202m in revenue
+10.9% vs 2014
A successful offer
• Value-added offers
• Renewed packages
* JV La Poste (51%) & SFR (49%), not included in Group revenue (IFRS 11 as of 1/1/2014) 1) Excluding social housing loans
• Roll-out of new formats of postal presence in addition to existing partnerships
• Strong banking orientation
• New digital services
Strategy
PAGE 33
2010-2015 digitization impact on European postal operators1 (in %)
Services-Mail-Parcels
Volumes (addressed mail, in bn)
15.8 15.4 14.5 13.7 12.9 12.0
9.0
2010 2015 2020
-24.0%
Services-Mail-Parcels Focus on mail volumes
1) Estimated ratio, which takes into account the delegated act published by the European Commission on 10 October 2014 regarding centralized savings at CDC, subject to the European Central
Bank’s authorization.
Solvency: sound capitalization
2015
2014
L/D ratio: 74%
3.4% 3.5%
96
Customer deposits
74
71
Customer loans
(75% in 2014 and 2015)
leverage ratio
Centralized deposits
(not included in L/D ratio calculation)
(in €bn)
Estimated leverage ratio3 5.4% 5.2%
La Banque Postale Solvency and liquidity
PAGE 34
• LCR: 224% at H1 2016
• A strong liquidity buffer with 85% of level 1 assets
H1 2016e
224%
2015
218%
3,1
Level 1
Level 2
H1 2016
€21,2bn
18,1
LCR and liquidity
12,7% 13,2% 13,4%
CET1
14,2% 14,7%
18,7%
14,9%
Tier1
17,0%
+20 bps 19,4%
Total
+20 bps
+70 bps
H1 2016
2015
2014
T2
AT1
CET1
H1 2016
19,4%
4,5%
1,5%
13,4%
Leverage ratio
5,0%
H1 2016
-10 bps
3,4%
2015
5,2%
3,5% Including delegated act*
Without delegated act
Leverage ratio
Ensure safety and responsible change management for the benefit of employees
PAGE 35
Develop services with a positive impact for society
Develop responsible offerings with added value for customers
CSR commitments to 2020 anchored in Group strategy
• Continuous attention to health and quality of life at work
• Focus on professional evolution and training
Cut greenhouse emissions by -15 % over 2013-2020 (already -8% by end 2015)
• Own #1 fleet of electric vehicles worldwide
• Be 100% supplied with renewable electricity by 2020
• Continue to fund its carbon offset programme
Responsibility towards
environment
Responsibility towards society
Responsibility towards
employees
• Provide an environment-friendly transport mode to the 15 major French cities by 2020
• Support public action and be the privileged partner of local authorities
• Increase social and solidarity economy purchases
Responsibility towards clients
• Offer reliable, qualitative and innovative services
• Expand responsible offerings
• Achieve targets set in business contract with State on the 4 public service missions
Develop a more responsible local economy
Anchored CSR policy and strong objectives
DPD Group rated Silver (top 13%)
Rating agency Group ranking Rating and comments
#2
overall rank in transport & logistics sector: #2/29
In the top 10 % of the industry (5% C+ and 5% C)
LBP #1 French and #2 international bank
In the top 6% of the industry
Gold level
• 59 / 100 Overall score in 2015 (+12 vs. 2013)
• 76 / 100 Environmental performance (+26 vs. 2013)
Rating review expected in 2016
• C Overall score in 2014 (vs. C in 2011)
• C- Environmental performance (vs C+ in 2011)
• C for performance (ratings B to C represent only 6% of
the industry group – no A rating)
• 97 for transparency (+16 vs. 2013)
• 70 Overall score (+3 vs. 2014)
• 80 Environmental performance (+10 vs. 2014)
PAGE 36
investo
rs
Bto
B &
Consum
ers
Non-financial rating performance