CTT - Correios De Portugal (CTT) investor relations material

Strategic transformation and business evolution

• Transitioned to an integrated Iberian e-commerce logistics leader, expanding through acquisitions and partnerships, notably with DHL and Cacesa, and reorganized into three business units: E-commerce Solutions, Mail & Services, and Banco CTT.

• Achieved strong financial performance, with revenue CAGR of 7-9% and recurring EBIT CAGR of 13-17% targeted for 2024-2028, and tripled equity value since 2019.

• Enhanced operational efficiency and sustainability, reducing carbon emissions per parcel by 47-50%, targeting 100% fleet electrification by 2030, and increasing social impact initiatives.

• Strengthened governance, employee engagement, and ESG initiatives, with a dedicated sustainability committee and increased volunteering.

• Maintained disciplined capital allocation, increasing dividends, executing share buybacks, and investing in growth and innovation.

E-commerce and logistics strategy

• Aims for Iberian leadership in e-commerce logistics within 3–5 years, leveraging DHL JV and Cacesa to expand cross-border and value chain coverage, with D+1 offer, 77 centers, and over 20,000 PUDO points including 1,100 lockers.

• Achieved 24% revenue CAGR (2021-24) in e-commerce logistics, with best-in-class EBIT margins and high client satisfaction.

• Focused on expanding out-of-home delivery, targeting 10,000 lockers and nearly 30,000 PUDO points in Iberia by 2028.

• Investing in proprietary technology, automation, and digital channels to drive efficiency, customer experience, and omnichannel journeys.

• Positioned to capture further e-commerce growth as Iberian online retail penetration remains below EU benchmarks, with B2C expected to outpace B2B.

Mail and services transformation

• Mail volumes continue to decline structurally, but profitability is maintained through pricing, operational efficiency, and offer diversification.

• Advocates for a new universal service funding model post-2028, requiring state budget contributions as user-funded models become unsustainable.

• Business solutions now account for ~50% of mail & services revenue, growing over 90% per year, with a focus on digital payments, BPO, and leveraging B2B relationships.

• Retail network modernization includes new concept stores, self-service technology, and a SuperAPP with over 3 million users, supporting omnichannel growth.

• Targets 7%-10% annual growth in mail & services, driven by business solutions and financial services.