CTT - Correios De Portugal (CTT) Investor presentation summary

Strategic transformation and market positioning

• Undergoing transformation to become a leading e-commerce logistics player in Iberia, leveraging a strong brand, unique sales force, and integrated last-mile distribution network.

• Retail network and logistics are highly synergistic, supporting both B2B and B2C segments, with a focus on operational integration and efficiency.

• Business units include mail, business and commerce services, parcel and e-commerce solutions, financial services, and a fast-growing digital retail bank.

E-commerce and parcel growth

• Express & Parcels (E&P) segment is driving topline and margin growth, with volumes and revenues rising steadily since 2019.

• Iberia is the 4th largest e-commerce market in Europe, and the company is the fastest-growing logistics player in the region, handling over 100 million items annually.

• E-commerce penetration in Iberia remains low compared to other European markets, indicating significant growth potential.

• Market share in Spain and Portugal is expanding, supported by high-quality service, new customer onboarding, and added services like customs clearance and extensive locker networks.

Financial performance and growth

• Revenues and recurring EBIT have shown consistent growth, with a 7.4% CAGR in revenues and 33% CAGR in recurring EBIT from 2019 to 2023.

• Banco CTT continues to grow its customer base and business volumes, with targets set for further expansion by 2025.

• Strong start to 2024 with increased client engagement, higher deposits, and loan volumes.

• Banco CTT delivered 6.3% revenue growth and 48.6% EBITDA growth year-over-year in 1Q24.

• Maintains a solid balance sheet with ample liquidity, capital ratios above regulatory requirements, and prudent leverage.