Investor Presentation Fourth Quarter 2018

Investor presentation Fourth quarter 2018

March - April 2019 2 Investor presentation fourth quarter 2018

Contents Domestic Mail – 46 Financial Calendar Parcels – 47 Highlights & guidance More on corporate.bpost.be/investors Radial – 48 4Q18 Highlights – 4 Additional sources of revenues – 49 FY18 Highlights – 5 Costs – 50 02.05.2019 New Business Unit structure – 6 Cash flow – 51 (17:45 CET) 2018 restated in new BU structure – 7 Balance sheet – 52 Quarterly results 1Q19 Outlook 2019 – 8 Current trading FY18 bpost at a glance 08.05.2019 EBITDA bridge – 54 Ordinary General Meeting of Shareholders Investment rationale – 10 Key financials – 55 Dividend policy – 11 Revenues – 56 Overview – 12 Domestic Mail – 57 15.05.2019 Transformation – 13 Parcels – 58 Dividend payment date Vision & strategy – 14 & 15 Additional sources of revenues – 59 Management – 16 Costs – 60 07.08.2019 Sustainability – 17 Cash flow – 61 (17:45 CET) Mail & Retail – 18-26 Quarterly results 2Q19 Parcels & Logistics Eur & Asia – 27-34 Additional Info Parcels & Logistics N. America – 35-41 2018 restated in new BU structure – 63-66 IFRS16 – 67-68 Current trading 4Q18 Relationship with State – 69 EBITDA bridge – 43 USO & SGEI – 70 Key financials – 44 European mail market – 71 Revenues – 45 Key contacts – 72

Disclaimer

This presentation is based on information published by bpost in its Fourth Quarter 2018 Interim Financial Report and in its 2018 Annual Report, both made available on March, 19th 2019 at 5.45pm CET and in its Capital Markets Day presentation of June, 21st 2018 available on corporate.bpost.be/investors. 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. 1 as defined among others under the U.S. Private Securities Litigation Reform Act of 1995 Highlights 4Q/FY18 Guidance 2019 4Q18 4

Highlights of 4Q18

Total operating income up 18.5% • Driven by acquisitions, strong organic domestic and international parcels growth and € 1,131.6m nearly stable domestic mail revenues Underlying Domestic Mail volume evolution • Impacted by continued e-substitution, rationalization and competitive advertising -6.2% market Continued strong parcels growth despite strikes impact; Radial in line with expectations • Domestic: double-digit organic volume growth driven by strong e-commerce growth +15.8% but impacted by strikes; price/mix effect of -3.3% fully mix related • Logistic Solutions: mainly driven by Radial (€ +111.6m) in line with expectations. + € 117.0m Good peak management, both in Belgium as in the US

Favorable organic cost evolution - € 1.4m • Total opex increase of € +121.4m driven by opex from acquisitions (€ +133.7m incl. (organic opex decrease) Radial).

Back-end loaded EBITDA generation as planned € 206.4m Proposed total dividend per share equal to last year as guided € 1.31 € 1.06 already paid in December 2018 and € 0.25 to be proposed at the Annual General Meeting in May 2019 gross FY18 5

Highlights FY18 – Results in line with expectations € million

Topic Results Last outlook for 2018

Low end of the FY18: € 571.1m (-4.5%, - € 26.9m) Group EBITDA € 560-600m range

Stable EBITDA Radial EBITDA FY18: € 25.7m (+ € 8.8m) contribution vs. 2017 (i.e. € 16.9m)

Domestic Mail FY18: -5.8% (underlying volume) Up to -7%

Parcels FY18: +23.3% (domestic volumes) Double digit

Total gross dividend of € 1.31 per share proposed At least the same Dividend • Interim dividend already paid: € 1.06 level as 2017 • Final dividend of € 0.25 (i.e. € 1.31) New business unit structure 6

New business unit structure - Reminder New business unit structure 7

New business unit structure – 2018 key financials in € million

1 2018 restated PaLo PaLo M&R Eurasia N. Am. Corp Eliminations Group External operating income 1,951.7 757.0 1,104.8 36.8 3,850.2 Internal operating income 159.6 35.3 9.6 358.2 (562.7) - Total operating income 2,111.3 792.3 1,114.4 395.0 (562.7) 3,850.2 Operating expenses 1,727.6 735.5 1,068.5 309.8 (562.3) 3,279.1 EBITDA 383.6 56.8 45.9 85.2 (0.4) 571.1 Margin (%) 18.2% 7.2% 4.1% 21.6% 14.8% Depreciation & Amortization 50.5 18.1 35.0 43.3 146.8 EBIT 333.2 38.7 10.9 41.92 (0.4) 424.3 Margin (%) 15.8% 4.9% 1.0% 10.6% 11.0%

Average # FTEs and interims 22,214 3,087 9,093 1,715 36,109

Note: an Excel download of restated financials is available under the Q4 caption on the website: https://corporate.bpost.be/investors/results-reports-and-presentations/quarterly-results/2018

1 Details per segment per quarter in appendix 2 Excluding exceptional items, Corporate segment is expected to be EBIT neutral. Outlook FY19 8

Outlook for 2019

• Low single digit % decline in Mail & Retail total operating income • Underlying Domestic Mail volume decline up to -7% Mail & Retail • Average price increase of +4.4% in Domestic Mail • % EBIT margin between 11-13%

• High single digit % growth in Parcels & Logistics Europe & Asia total Parcels & Logistics operating income of which mid-teens for Parcels Belgium-Netherlands Europe & Asia (BeNe) • % EBIT margin between 6%-8%

• Low single digit % decline in Parcels & Logistics North America total Parcels & Logistics operating income mainly explained by the FY impact of the 2018 client churn and repricing at Radial. On track for 2022 guidance as presented at North America the CMD. • Break-even at EBIT level

• Stable total operating income incl. proceeds from building sales Group • Normalized EBIT above € 300m1 • Gross capex around € 150m

Dividend • At least 85% of 2019 BGAAP net profit of bpost SA/NV

1 Corporate EBIT is expected to be neutral bpost at a glance bpost at a glance 10 bpost offers a strong investment rationale

bpost aims at being a responsible company, delivering a sustainable dividend to its shareholders

What?

We continue to transform the mail and proximity business in the home market to sustain solid cashflows

We develop sustainable activities in the high growth e-commerce logistics & parcels business in our Be-Ne home market and key geographies in Europe and North America

How?

Multiple levers for transformation of the legacy business: natural attrition, alternative delivery model, stable and predictable regulation, network optimization,…

Experienced management team with embedded financial discipline and a strong business transformation track record

High growth in e-commerce logistics & parcels: aspired sizeable share of revenues by 2022

A solid balance sheet with single 'A' credit rating bpost at a glance 11

We create value for shareholders

Dividend Policy Annual dividend of at least 85% of BGAAP net profit (unconsolidated) Interim in December of financial year based on 10-month results Final in May of year following financial year

Constrained by the net results of a given year + distributable reserves

Distributable reserves built gradually as from 2013, primarily to safeguard the dividend level in case of exceptional costs (€ 173m end 2018)

1.26 1.29 1.31 1.31 1.31 1.13 0,22 0.24 0,25 0,25 0.25* 0,20

1,06 0,93 1,04 1,05 1,06 1,06 Final gross DPS (€) Interim gross DPS (€)

2013 2014 2015 2016 2017 2018 Pay-out 91% 85% 90% 85% 90% 100% ratio

* Proposed final gross dividend per share to be approved by General Meeting of May 8, 2019 bpost at a glance 12

A diversified mail operator with a footprint in e-commerce logistics Revenues % of total

Transactional mail € 772m 20%

Advertising mail € 244m 6% € 3,850.2m1 Mail & revenues Retail Press € 350m 9% € 1,952m 51% Proximity and convenience € 571.1m € 480m 12% 14.8% retail network EBITDA Value added services € 105m 3% € 424.3m Parcels & 11.0% Parcels BeNe € 339m 9% EBIT Logistics Europe & Asia E-commerce logistics € 128m 3% € 290.4m € 757m net profit 20% Cross-border € 290m 8%

36,109 Parcels & average Logistics E-commerce logistics € 1,018m 26% # FTE & interims North America International € 87m 2% € 1,105m 29% 2018 figures (normalized) 1 51% Mail & Retail, 20% Parcels & Logistics Europe & Asia, 29% Parcels & Logistics North America and 1% Corporate revenue bpost at a glance 13

Continuous improvement is in our DNA. We have a proven transformation track record

2017 2004 2009 2011-2020 Launch • Building of new Implemen- Strategic ‘Vision 2020’ New sorting centres tation of new program in mail service Brussels • Transformation of distribution operations to further increase X sorting the network 2007 structure efficiency facility Automated with reduced round number of 2003 sorting and buildings mail Start of sequencing continuous optimization of delivery rounds Transformation journey

Normalized1 EBIT 2008 2003 2006 Danish Post 2013 New management CVC and Danish Post sells its IPO in June at € 14.5/share & start of the enter into the capital stake to CVC CVC sells 30% in IPO and transformation for 50%-1 share remaining 20% in December period (split 50/50), government holds Key Key events 50%+1 share

1 Normalized figures are not audited bpost at a glance 14

Vision for the long-term

Beyond mail, be an efficient global e-commerce logistics player anchored in Belgium”

EBIT Efficient provider

Sizeable share of Progressive profit of mail universal, revenues generated generation retail & public services in parcels & logistics bpost at a glance 15 bpost will deliver on 3 strategic aspirations…

1 Mail services to citizens 2 Drive profitable growth in and State remain core and parcels in BeNe and will continue to generate further develop e- profit with a more commerce logistics in adapted distribution Europe model

CASH GENERATION & DIVIDENDS

3 Optimize Radial to deliver on the investment thesis in the promising North American e-commerce market bpost at a glance 16

… supported by an experienced management team with responsibilities down to the bottom-line

Koen Van Gerven Group CEO

Henri de Romrée Luc Cloet Pierre Winand CEO CEO Parcels & CEO Parcels & Mail & Retail Logistics Europe & Logistics North Asia America

Baudouin de Mark Michiels Dirk Tirez Nico Cools Hepcée CHRO CLO CIO CFO ad interim bpost at a glance 17

Sustainability is at the heart of our activities

3-pillar CSR strategy linked to United Selected awards and recognition Nations • IPC EMMS Scorecard 2018 (sector index):

• Employee health & safety • Green fleet #1 (Sixth Year) • Employee training and • Green buildings • EcoVadis (clients index): Gold rating talent development • Waste management • Ethics & diversity • Social dialogue • Ethibel Indexes: reconfirmed as a constituent of the Ethibel Sustainability Index (ESI) Excellence Europe People Planet since 19/03/2018 we care we strive to • Sustainalytics: score 79% (2/133) about our reduce our • MSCI: Score A employees impact on and engage the • ISS: Quality Score: 2 = Low Risk them environment

Shared 1st IPC Environmental Value Ranking Creation

First Sustainable Loan in Belgium • Continuity of our business • To our community € 300m revolving credit facility with pricing mechanism • Employee • To our suppliers satisfaction and Proximity linked to the sustainability score of bpost • To our customers engagement we are close through our • Customer • Financing needs aligned with bpost’s sustainability to the services satisfaction and CSR ambitions society • bpost being recognized by its stakeholders as a highly responsible company bpost at a glance – Mail & Retail 18

Mail & Retail at a glance

Revenue Sub-segments 2018, €m Key facts & figures

~7.7m letters handled Transactional 772 daily mail

Advertising mail 244 ~19.0k operational FTEs

Press1 350 Servicing 5.6m letter boxes Proximity and convenience 480 retail network2 5 industrial sorting centers Value added services3 105

~2.3k points of presence Total 1.952 in Belgium

1 Includes Ubiway press distribution revenue (AMP) 2 Includes Banking & Financial, Retail & Other MRS and Ubiway convenience distribution 3 Value Added Services (the part attributed to the previous MRS operating segment) bpost at a glance – Mail & Retail 19

Key value drivers for the Mail & Retail business

Key value drivers From To

Up to ~-9% Speed of mail volume decline -5.8% in 2018 by 2022

Share of mail volume decline compensated >50% over 70% in 2018 through price increase 2018-2022

Renegotiation/retendering of future 6th Three contracts until end Successful extension Management contract and press 2020; compensation / renewal concessions contractually set

Flexible, Evolution of operating model (mail collect Fixed D+1 based model differentiated offering and distribution) (everywhere, everyday) (prior vs. non-prior) bpost at a glance – Mail & Retail 20

Domestic mail volume decline expected to progressively accelerate from -5.8% in 2018 up to ~9% in 2022

2013 2014 2015 2016 2017 2018 2019-22 Key drivers Underlying change in -4.2% -4.4% • E-substitution domestic mail volume -5.0% -5.0% -5.8% -5.8% at large corporates and Progressively Belgian State up to -9% with the alternative Transactional mail -3.7% • Intensifying -5.0% -5.3% -5.9% -5.7% operating competition in -8.1% model advertising media 1.5% • Shift to digital for newspapers Advertising mail -3.0% -3.0% & magazines -4.9% -7.2% -9.1% • Renewal of press concessions

• Service level Press -2.8%-2.8% -2.8% elasticity -3.0% -3.7% -3.8% bpost at a glance – Mail & Retail 21

Regulatory aspects

Designated provider of the Universal Service Obligation until end 20231 • Collection, sorting, transport and distribution of postal items up to 2kg and single piece postal packages up to 10kg • Collect and deliver 5x per week • Cover full territory of Belgium for collection and delivery of items belonging to universal service • Apply uniform tariffs and an identical service across the territory

Postal law of 10 February 2018 provides stable & predictable mail pricing framework

• Single piece mail & USO parcels falling within “small user basket” are subject to a price cap • Price cap2 = inflation - (volume evolution + cost reduction factor x efficiency gains sharing factor) • Volume and operational discounts allowed for other USO products (bulk) • Price increases done in practice on a yearly basis: +4.4% on average in 2019 on all domestic mail items

3 key contracts with the Belgian State until 20201

• 6th Management Contract: for the provision of certain SGEIs, i.e. maintenance of retail network, cash at counter, cash payment of pensions at home • 2 press concessions: (1) for distribution of periodicals and (2) for distribution of newspapers

1 Refer to slide 70 for more details 2 Exact formula: Price cap = health index April n-1/ health index April n-2 * (1 – [expected volume decline/(expected volume decline +1)] – 2.8%*33% ) – 1 bpost at a glance – Mail & Retail 22

New Postal Law provides stable and predictable regulatory framework to increase prices in context of accelerating mail volume decline Effective as of February 10, 2018

Drivers of the price cap formula

Inflation Volume decline Efficiency gains

Compensation for Compensation for mail Mechanism to share 1/3 of Description inflation volume decline the efficiency gains target with consumers

Higher inflation results in Larger mail volume Constant and fixed by law Correlation to larger allowed price decline results in larger price cap increase allowed price increase

[V/(V+1)] with V as the Fixed by the law at 0.9% Ratio of the health index Calculation expected negative volume (i.e., 1/3 of 2.8% as measured in April of logic trend on the Small User efficiency gains target) the n-1 and n-2 years Basket

Illustrative example assuming 2% inflation and -6% average volume decline: Price cap1: 7.6% 102% x 106.4% 0.9%

1 Detailed formula: Price cap = (1 + inflation) * ( 1 - [V/(V+1)] – 0.9% ) – 1 , giving for the above example the following calculation (1+2%) * (1 – [-6%/(-6%+1)] – 0.9%) - 1 = 7.6% bpost at a glance – Mail & Retail 23

Price increase and mix effects expected to compensate >50% of mail volume decline over 2018-22

Volume and price/mix impact on revenue €m Key drivers Domestic mail volume Domestic mail price/mix x% Share of volume effect compensated by price/mix • Accelerating 72% 45% 30% 31% 18% >50% domestic mail volume decline up to -9% by 71 67 68 2022 60 57 • New price cap mechanism of Postal Law 42 defining max price increase for 27 small user 20 21 basket, and guiding price 13 increase for non- price capped products 2013 1415 16 17 2018-221 • Price increase Price increase on Building on the partly offset by small user basket New Postal Law for shift to less rejected by price regulated expensive mail regulator products products

1 2018 was at 70% bpost at a glance – Mail & Retail 24

Management has developed an extended set of cost control options

Examples of cost control options

• Evolve towards a differentiated offering and alternative operating model Operating model • Take measures to address absenteeism

• Optimize mail sorting centers footprint Industrial Mail Centers • Pursue continuous improvement

• Align number of red boxes to mail volume decline Collect & Transport • Stop collect on Saturday and increase flexibility of pick-up, delivery and dispatch timing constraints

• Introduce new generation of Georoute and time potential management Distribution • Simplify process for selected transactions • Enhance customer experience and productivity through digital (e.g., consumer preferences)

FTE Unit cost • Further optimize FTE mix bpost at a glance – Mail & Retail 25

bpost evolves towards a differentiated offering to accommodate changing customer needs

Differentiated offering as of Jan 1st 2019 Operating model evolution Optimizing drop density

Share of houses receiving mail on any given day, % D+1 Alternative: Mail Current model: D+3 combined • Adjusted “day certain” everywhere, everyday with D+1 Available to consumers who need distribution frequency: in ~70 ~70 D+1 delivery a given street, mail will be ~55 distributed on selective days <50 of the week

• D+1 delivery will remain available as a separate 2004 2018 2022 2022 product (“Prior”) Within D+3 Acceptance for D+3-41

Service level agreement (SLA) “within 3 days” Parcels Individuals 94%1

• D+1 offering No change

Newspapers Professionals ~92%

• Same day delivery

1 Based on a bpost study with 1,000 households & 500 businesses (<200FTE) interviewed in February 2015 bpost at a glance – Mail & Retail 26

Labor cost will benefit from decrease of mail related FTEs and optimized employee mix

Operational FTE evolution1 Age pyramid1 Average FTEs and interims, ‘000 Operational headcount per age, 31/12/18 Natural attrition 19.8 7,702 19.0 18.5 18.6 18.6 19.0 6,965 Average natural attrition is expected 5,451 to range from 1,200 Allocated to 80-85% to 1,300 FTEs/year mail over 2019-22

Allocated to Non pay-scale contractuals parcels 15-20% Pay-scale contractuals 20131415 16 17 18 0-3940-49 50+ Civil servants

Operational FTE mix evolution1 Average cost per contract type1 Indexed Other 5% 6% 7% 7% 7% 19% 19% 17% Contractual 18% 18% Contractual ~95 Auxiliary 25% postman 28% 32% 37% 41% Auxiliary ~74 postman

Civil servant 51% 47% 43% 39% 35% Civil servant 100

2014 15 16 17 18

1 bpost SA/NV scope, excluding retail network bpost at a glance – PaLo Eurasia 27

Parcels & Logistics Europe and Asia at a glance

Revenue Sub-segments Pro forma 2018, €m Key facts & figures

+417k parcels • Last-mile activities in Belgium per peak day in Parcels BeNe 339 and the Netherlands BeNe (last-mile)1 • Total of ~62m parcels in 2018

• Fulfilment & transport E-commerce 128 activities in Europe (incl. Radial Parcel hubs with logistics2 EU) dedicated parcel rounds in BE where enough density Cross-border • Majority of cross-border (incl. int’l mail 290 volume is inbound mail and & parcels) parcels for Europe and Asia 3 sorting location (New Brussels X, AX, CX) + Dyna Total 757 hubs

1 Includes a.o. domestic parcels at the exception of inbound flow, DynaLogic, DynaSure, Citydepot, Eurosprinters, De Buren and Parcify 2 Includes a.o. Radial Europe, Dynafix, NL & PL fulfilment, Leen Menken, Bubble post and Active Ants bpost at a glance – PaLo Eurasia 28

Key value drivers for Parcels & Logistics Europe and Asia

Sub-segments Key value drivers From To

Volume growth rate • Ability to capture profitable growth in of 20-30% with price/ Double-digit volume a competitive environment mix effect up to -6% growth rate over 2016-2018

Parcels BeNe Focus on Belgium • BeNe-wide offering addressing (sales force, contracts, BeNe-wide approach (last-mile) customer requirements DHL partnership)

• Optimized last-mile operations based Parcel hubs where Parcel hubs where on parcels characteristics (e.g., size) and enough density enough density in line with delivery requirements

• Ability to organically capture market E-commerce logistics Higher scale & skills, E-commerce growth of ~10% p.a. (vs. insourcing, in PL, NL & BE and ability to leverage logistics pan-European players) “DynaFix” Radial capabilities

• Develop international cross-border Natural business Developing parcels, also across continents evolution international parcel Cross-border • Ability to maintain international mail flows driven by volume e-commerce activity bpost at a glance – PaLo Eurasia 29

Four strategic initiatives for parcels BeNe

• Dedicated, specialized sales force Integrated • Integrated commercial offers BeNe offering • Partnership with DHL Parcels

• Convenience expressed through Net Promoter Score KPI • Dedicated parcel 4 Convenience hubs strategic Differentiate • Tactical pricing & Cost initiatives pricing policy initiatives • Sorting capacity leadership • Fulfilment infrastructure • Transport optimization • Digital excellence

Attract key • Partnerships with e-commerce foreign players e-commerce • E2E service offering (“gateway players to Europe”) bpost at a glance – PaLo Eurasia 30

We have an established position in the Belgian B2C/C2C parcels market

CAGR 2017-20, % 2017 parcel market1 100% = € 1,285m

B2C 2017 bpost domestic B2C ~15% parcels revenue € 224m

C2C ~5%

B2B C2C

B2B 0-4%

Unique selling proposition

Offer best last mile and broadest delivery options, supported by acquisitions and partnerships:

• Home delivery 7/7 & evening delivery, including high-end deliveries (2-man)

• ~2,300 pick-up & drop-off points (incl. ~830 open access Kariboo! points)

• 181 parcel lockers in Belgium

• Click & Collect

• Non-exclusive partnerships with DPDHL for B2C parcel delivery into Belgium (from Germany/France & Benelux)

1 Source: Effigy bpost at a glance – PaLo Eurasia 31

New partnership with DHL Parcels NL will allow to cover the full BeNe region and to capture important cross-border flows

Purchasing behavior • NL is the most important Large NL-based e-commerce players import country to BE (~20% of import flows) • Looking for a BeNe wide offering with regards to last mile • BE consumers mainly buy from NL players such as • Benchmarking prices on a BeNe Bol.com and Coolblue level

Competitive offering Very competitive & dynamic region Launched in June 2018 • with many large players such as PostNL, DHL, DPD, FedEx bpost at a glance – PaLo Eurasia 32

The parcels operating model will be continuously optimized

Optimize distribution cost Build dedicated parcel using drop density of mail infrastructure to match rounds customer requirements Increase sorting capacity

• Maximize letterbox-sized and • Nationwide network of Parcel • Increase sorting capacity to non-letterbox-sized parcels in hubs to accommodate cope with increasing volume mail rounds (~40% of the distribution of ~60% of parcels (optimizing sorting footprint mail parcels) (that are not in mail rounds) & parcels) • Cost advantage due to higher • Parcel hubs where enough • Use technology (e.g. address drop density leading to lower density, with ramp up in line with recognition) unit costs parcels growth • Benefit for customer proximity and special services e.g. Late-in services, “large scale” evening distribution or same day distribution bpost at a glance – PaLo Eurasia 33

Additional parcels sorting capacity will be gradually built

2018 2022

+ Parcel sorting capability Ax Ax footprint1 NBx Gx NBx Cx Cx Lx The selected scenario to gradually add capacity to all sorting centers offers • Centralized sorting • Additional parcel sorting several advantages such as capacity mainly in NBX. machines in existing Additional capacity in AX & centers (LX, GX, AX, CX) • Use freed space from Description CX. to increase capacity letters • Build on DHL capacities • Minimize transportation costs

~600 + DHL Base ~400 Capacity, K Parcels / day

1 Parcel sorting capabilities of Parcify, Eurosprinters, Citydepot & Kariboo not shown on the map bpost at a glance – PaLo Eurasia 34

Supported by acquisitions, bpost has initial assets in Europe along the entire value chain of e-commerce logistics

E-commerce logistics operations in Europe E-commerce logistics offering

Order

• Order management • Payment Cold chain facility Fulfilment sites Personalized logistics Customer services, tax care services and fraud prevention • Phone, 1 email, social Realtime media & 4 technology The chat Netherlands support 2 • Advanced UK analytics 3 Poland Germany Belgium • Hybrid transport Delivery network for high- Fulfilment end and urgent 9 fulfilment centers / delivery • Order ~€ 128m 2018 revenue 1 • Last mile delivery reception in facilities warehouses in 5 countries >800 employees the proximity of clients • Preparation for shipment

1 Including Leen Menken and Active Ants, excluding bpost sorting centers bpost at a glance – PaLo North America 35

Parcels & Logistics North America at a glance

Revenue Sub-segments 2018, €m Objective

US e-commerce logistics Growth engine for provider fulfilling 72m bpost, to be a leading parcels p.a. with proven e-commerce logistics client base, IT infrastructure player in US with E-commerce 1,0181 logistics1 and capabilities along the ~$ 100m-$ 120m E2E value chain EBITDA potential

Capabilities to support mid- Grow with cross- sized e-tailers to expand border commerce cross-border and last mile distribution in Canada and Interna- 87 tional Mail2 Australia International mail One of the last solutions and catalogue international mail fulfilment through US providers to deliver companies profit through infrastructure Total 1.105 optimization

1 Radial North America, Landmark Global, Apple Express and FDM 2 MSI, Imex, Mail Inc. bpost at a glance – PaLo North America 36 bpost has a global footprint through Landmark Global and a nation-wide coverage in the US through Radial

Strategic locations in 13 countries bpost at a glance – PaLo North America 37

Acquisition of US-based on 16 November 2017

Acquisition rationale Key data Our growth • Sales 2018: € 888m Normalized EBITDA 2018: € 25.7m (2.9% margin) • Integrated e-commerce logistics provides access to a larger and more attractive profit pool 8,600 FTEs • Radial as growth engine and key profit • 24 fulfillment centers globally (of which 2 in Europe contributor included in the business unit PaLo Eurasia) Presence in the US and Europe • Strengthen US position building on presence • 100% acquisition of the shares with Landmark Global • Enterprise Value: $ 820m • Scale bpost’s e-commerce logistics capabilities in • Financed through a € 650m 8-year bond issue the Benelux and Europe carrying a coupon of 1.25% (issued 4 July 2018) Strong growth of e-commerce • e-commerce is growing rapidly with US being an attractive and advanced space (+16% p.a. growth of online retail over 2004-2022e) Financial indicators for Radial North America • Transatlantic e-commerce is growing at >25% p.a. with 20% of European parcels coming from • Sales CAGR 2019-2022: +7 to 9% p.a. the US • EBITDA 2022e: $ 100-120m (high single digit margin) Knowledge and experience • Capex: maintenance capex of $ 25-30m + growth capex for capacity expansion & automation • Knowledge and experience of the e-commerce logistics chain increase exponentially with the acquisition of an experienced player bpost at a glance – PaLo North America 38

Radial North America offers multiple services across the entire e-commerce logistics value chain

Revenues share Radial North % America assets Description and key strengths Processing global payments, maximizing successful Payment, Tax, authorization and reconciling tax districts and global Fraud Zero duties 1 and Fraud software Prevention  99.1% approval rate vs. 97.1% industry average  2.1% manual review rate vs. 25% industry average Optimizing efficiency of order management, ship-from- 18% 22,000 store and in-store pick up Stores with Omnichannel  Ability to handle complex orders

Technology 2 fulfilment Technology  < 10 weeks to deployment vs. competition 1-2 26,000 years Dropship suppliers  Scalability of technology Adapting warehouse management and parcels Warehousing - 22 preparation to e-commerce with pragmatic automation 3  80%+ orders shipped day 0 & Fulfilment Fulfilment sites in North America  ~100% US coverage  Experience of scaling up to ~20k peak capacity 72% - Managing a large network of carriers for a seamless customer experience Freight 100% 4  Rates 5-15% cheaper than in-sourcing for mid- Management asset light sized players  Clients reached in 2.4 days on avg Operations Having a single view of customer’s history and profile combined with leading self-service tech 3,400+ 5 Customer Care 10%  #1 Email & Chat and #2 Phone Seats across 5 sites (StellaService ranks)  Advanced data analytics bpost at a glance – PaLo North America 39

Radial North America market dynamics and competitive landscape

Online revenue e-tailers, US Addressable e-commerce logistics sector $ 27-37bn addressable e-commerce logistics

Radial’s target $ 2,000m Radial’s target audience audience e-commerce revenue $ 150-155bn ($ 20m – 2bn ~$ 540bn revenues) total US • Mid-market online Retail segment e-commerce ($ 20-200m online revenue) Independent e-commerce logistics providers • Enterprise segment ($ 200-600m) $ 20m • Some selected key accounts ($ 600m-$ 2bn)

$ 540bn1 expected US online retail revenue in 2018

1 Source: Forrester Data, Online Retail Forecast, 2018 bpost at a glance – PaLo North America 40

Positive commercial development at Radial and evolution over FY18 in line with expectations

FY18 results in line with expectations Commercially heading in the right direction

• Good peak management, with productivity gains • We observe that the new customer-focused partly offset by higher costs related to approach launched early 2018 starts to bear fruits maintaining a sufficient labor pool within a tight with progressive NPS improvement during the year. US labor market. Customers gave a very positive peak feedback.

Results impacted, as expected, by: • After the poor renewal performance of 2017 and 1Q18, positive contract renewal cycle for existing • Churn (mostly in Fulfilment & Transport), with clients, as from 2Q18. revenue growth from new and existing customers (also impacted by some repricing) not • New contracts signed have a TCV of $ 217m, which compensating revenue loss from clients is above target and above the previous 2 years ($ terminating with Radial. 150m in 2016 and 2017).

• Webstore business phase-out, impacting FY18 EBITDA by $ -21.2m. bpost at a glance – PaLo North America 41

Radial action plan will result in $ 80-100m potential EBITDA improvement by 2022

2018

• Fuel top-line growth via new leads, increased conversion rate and optimized pricing 1 Grow & Retain 50 • Increase satisfaction and retain clients by installing true client philosophy (e.g. pursue renewals, improve client qualification, …)

• Continue to implement productivity improvement programs, e.g. ‒ Lean warehousing metrics 2 Productivity 10-20 ‒ Improved allocation of clients to distribution centers based on client specifics

Supporting • Implement identified improvement levers in support functions 3 functions 20-30 (e.g. IT, medical costs, …) and IT

2022e 100-120

+80-100 Current Trading 4Q18 4Q18 43

4Q18 EBITDA driven by parcels performance, acquisitions and nearly stable domestic mail € million

€ +25.9m / +18.0%

Organic opex 206,4

3.4 1.4 37,0 24,4 -24.2 169,4 0.9 151,4 21,7 -7.9 143,5 -1.7 Opex from acquisitions (excl. Radial)

Reported Positive EBITDA Domestic Parcels Additional Corporate Costs EBITDA EBITDA Positive Reported EBITDA one-off 4Q17 Mail sources of Radial 4Q18 one-off EBITDA 4Q17 4Q17 excl. revenues excl. 4Q18 4Q18 one-off one-off

Total operating income Variance 4Q18 • € 18.2m earn-out reversals Reversal on earn- versus 6 weeks • € 7.9m gain on building out DynaGroup consolidated in sales (OBX) 2017 • € 10.9m IAS19 4Q18 44

Summary of key financials 4Q18 € million

Reported Normalized1 4Q17 4Q18 4Q17 4Q18 % Δ € 13.1m linked to amortization on Total operating income 955.1 1,131.6 955.1 1,131.6 18.5% intangible assets Operating expenses 803.7 925.2 803.7 925.2 15.1% (purchase price EBITDA 151.4 206.4 151.4 206.4 36.3% allocation “PPA” Radial, Ubiway, Margin (%) 15.9% 18.2% 15.9% 18.2% Dynagroup, de EBIT 115.5 143.8 124.2 156.9 26.3% Buren & Imex) Margin (%) 12.1% 12.7% 13.0% 13.9% Tax impact of PPA Profit before tax 106.9 140.5 115.7 153.6 32.8% on amortization of Income tax expense 39.8 35.9 42.2 38.2 € 2.3m Net profit 67.1 104.6 73.5 115.4 57.1% Normalized FCF FCF (576.6) 221.8 (591.6) 186.0 excludes the cash bpost S.A./N.V. net profit (BGAAP) 68.2 78.1 68.2 78.1 14.5% Radial receives on Net Debt/ (Net cash), at 31 December 292.4 344.8 292.4 344.8 behalf of its customers for performing billing services.

1 Normalized figures are not audited 4Q18 45

Total operating income € million

4Q17 ∆ 4Q18 % ∆

Transactional mail 214.8 2.7 217.5 1.3% Domestic mail Advertising mail 67.3 -1.7 65.6 -2.5% Press 77.7 -2.7 75.0 -3.5%

Domestic parcels1 64.8 7.9 72.6 12.1% Parcels International parcels 63.0 8.5 71.4 13.5% Logistic solutions2 240.2 117.0 357.2 48.7% International mail3 43.0 22.7 65.7 52.7% Additional Value added services 25.4 3.2 28.7 12.7% sources Banking and financial 43.5 -2.2 41.3 -5.0% of revenues Distribution 25.8 4.4 30.3 17.1% Retail & Other4 76.9 5.4 82.3 7.0%

Corporate4 12.8 11.3 24.2 88.2% TOTAL 955.1 176.5 1,131.6 18.5%

1 Defined as domestic and Belgian in- and outbound 2 Including scope changes: Radial, Leen Menken, BubblePost, Active Ants 3 Including scope changes: Imex, M.A.I.L. Inc. 4 Including one-off 4Q18 operating income (earn-out reversals in Retail & Other and gain on sale OBX in Corporate) 4Q18 46

Domestic mail underlying volume trend at -6.2% in line with guidance Total operating income, € million

4Q17 359.8

Working day 1.8 impact • Elections: local elections on October 14th, 2018 impacting revenues positively for € 3.1m (+1.0% on overall domestic mail volume). Elections 3.1 • Transactional Mail: continued e-substitution and rationalization. • Advertising Mail: excluding elections, unfavorable media mix Volume -21.2 evolution in Direct Mail and higher competition in unaddressed. Advertising volumes are impacted by shift towards transactional & press categories. • Press: newspapers trend (excl. distribution days effects) slightly Price/mix 14,6 better than 4Q17; periodicals impacted by digitization and rationalization. Reported Underlying (excl. elections) 1 1Q18 2Q18 3Q18 4Q18 FY18 1Q18 2Q18 3Q18 4Q18 FY18 4Q18 358.1 Transactional mail -7.0% -3.5% -5.3% -5.3% -5.3% -6.7% -3.2% -6.1% -6.6% -5.7% Advertising mail -7.6% -7.8% -3.4% -3.5% -5.7% -7.6% -7.8% -6.9% -6.3% -7.2% Press -3.3% -2.5% -7.1% -2.9% -3.8% -3.3% -2.5% -7.1% -2.9% -3.8% Domestic Mail -6.8% -4.3% -5.1% -4.6% -5.2% -6.6% -4.1% -6.4% -6.2% -5.8% -1.7

1 Mail volumes related to elections and working day differences are neutralized in the underlying volume trend: 4Q18 had 2 working days more on franking machines vs. the same quarter of 2017. 4Q18 47

Organic parcels growth supplements acquisitions revenue contribution Total operating income, € million

4Q17 367.9

• Increase driven by consolidation of full 3 months in 4Q18 vs. Radial 111.6 6 weeks (as of 16 November 2017) last year. Radial revenues reported under Logistic Solutions.

4Q17 479.5 • Reported organic volume growth of +15.8% driven by rebased strong e-commerce growth partly offset by strikes (estimated volume impact of 5.3%) and slower C2C sales. Domestic 7,9 • Price/mix of -3.3%: price increase fully offset by product Parcels1 & client mix effect.

International 8,5 • Growth driven by US and Europe. Parcels

Logistic 5.4 • Mainly consolidation of Leen Menken and Active Ants2. Solutions

4Q18 501.2

+21.7

1 Defined as domestic and Belgian in- and outbound 2 Active Ants is included in FY18 for 10 months as of 1 April 2018, with 4 months in 4Q18 4Q18 48

Radial: successful EoY peak despite labor cost pressure

• 4Q18 revenues below 4Q17 as anticipated: – Revenue growth from new and existing customers not compensating revenue loss from clients terminating with Radial – Webstore phase-out and expected client churn in Fulfilment & Transport • 4Q18 EBITDA below 4Q17 as anticipated: – Growth from existing clients, better productivity, lower medical claims and favorable evolution of fraud charge backs – Offset by phase-out of webstore business, impact of customer churn and increase in incentives to adequately staff for year-end peak

Reported € million 4Q18 Total operating income 313.5 Operating expenses 295.6 Transport 102.4 Payroll and interim 119.4 Other SG&A 59.4 Other costs 14.5 EBITDA 17.9 Margin (%) 5.7% 4Q18 49

Additional sources of revenues reflect acquisitions Total operating income, € million

4Q17 214.6

Scope -1.2

One-off 10,3 • de Buren and Dyna earn-out reversals variance booked in Retail & Other. 4Q17 223.7 rebased • Consolidation of Imex & M.A.I.L., Inc. as of January 2018, higher registered volumes (from Asia) and client wins International mail 22,7 (UK). • Mainly document management services and management VAS 3.2 of cross-border fines. • Lower commission revenues on bpost bank savings Banking & Financial -2.2 accounts due to low interest rate environment; lower revenue from financial transactions managed on behalf of the State. Distribution 4.4 • Mainly Alvadis due to a reclassification from Retail & Other to Distribution. Retail & Other -3.7 • Growth at Ubiway retail offset by lower sales bpost retail 4Q18 248.1 products.

+24.4 4Q18 50

Favorable organic costs evolution Operating expenses excl. depreciation and amortization, € million

4Q17 803.7

IAS 19 -10.9 • Group insurance 4Q18 (payroll & interim).

Consolidation effect (opex 133.7 acquisitions)1 4Q17 • Increase driven by international activities (mail & parcels) 926.5 rebased and domestic parcels growth (subcontractors), additional costs due to strikes. Transport 11,8 • Additional headcount (mainly parcels growth & absenteeism), salary indexation and merit increases Payroll & Interim -9.7 compensated by better productivity, favorable FTE mix, tax shift, unpaid hours due to strikes and favorable SG&A -4.4 evolution of some payroll provisions. • Lower third party and advisory costs. Other costs 0.9 • Higher materials cost partly compensated by favorable 4Q18 925.2 evolution provisions.

-1.4

1 Opex of Radial, Bubble Post, Leen Menken, Imex, M.A.I.L., Inc., Active Ants (see appendix for more detail) 4Q18 51

Positive evolution of FCF supported by working capital evolution and lower outflows related to M&A activities

Reported - € million 4Q17 4Q18 Delta Cash flow from operating activities +46.7 +223.9 +177.2 Cash flow from investing activities -623.2 -2.1 +621.1 Operating free cash flow -576.6 +221.8 +798.4 Financing activities +466.6 -79.1 -545.7 Net cash movement -110.0 +142.7 +252.6 Capex -54.4 -48.5 +5.9

CF from operating activities: • CF from operating activities before changes in working capital: € 129.4m • Collected cash due to Radial’s clients: € 35.8m • Decrease in working capital: € 58.7m

CF from investing activities: • Proceeds from sale of buildings (€ 46.5m) almost fully compensating capex (€ 48.5m)

CF from financing activities, mainly: • Issuance of commercial paper (€ 145.0m) more than offset by interim dividend pay-out (€ 212.0m)

1 Operating free cash flow = cash flow from operating activities + cash flow from investing activities 4Q18 52

bpost is to retain a robust balance sheet € million

Rating and capital allocation Assets Equity and liabilities

3,345.1 3,345.1 • S&P assigned credit rating 3,241.0 3,241.0 Cash, cash of ‘A’ to bpost on June 20th, equivalents 2018 based on a stand- 466,0 680,1 Interest-bearing 755,3 alone credit profile of BBB & investment loans & borrowings 1,024.8 securities 39.3 329,2 70.7 Other assets 251,2 Provisions 66.5 • bpost successfully issued a 39.3 Investments in € 650m 8-year bond on associates Trade & other July 4th, 2018 with a coupon 724,3 723,2 payables and of 1.25% Trade & other 1,314.5 receivables 39.1 derivative 1,270.3 36.9 instruments Inventories • bpost seeks to maintain credit metrics compatible with a solid intrinsic PPE & intangible Employee benefits 326,9 investment grade 1,643.1 308,4 assets 1,583.0

• Dividends remain the Total equity 777,8 702,3 primary use of capital allocation as the plan Dec 31, Dec 31, Dec 31, Dec 31, assumes no further 2017 2018 2017 2018 acquisitions restated1 restated1

1 bpost has no pension deficit: as is customary in Belgium all pensions are paid as part of national social security Current Trading FY18 FY18 54

FY18 EBITDA impacted by growth activities and core business cost inflation € million

€ -29.4m / -5.3%

70,4 -7.5 Opex from acquisitions 598,0 -99.5 (excl. Radial) 571,1 -45.4 552,6 -13.8 79.8 -67.5 8,8 523,2 47,9

Organic opex

Variance FY18 versus 6 weeks consolidated in 2017

Reported Positive EBITDA Domestic Parcels Additional CorporateCosts EBITDA EBITDA Positive Reported EBITDA one-offs FY17 Mail sources of Radial FY18 one-offs EBITDA FY17 FY17 excl. revenues excl. FY18 FY18 one-offs one-off

• € 15.3m IAS19 non-cash gain related to Total operating income • € 14.9m provision reversal termination of transport benefit • € -4.1m specific projects and ATM attacks • € 7.9m reversal on earn-out DynaGroup • € 18.2m earn-out reversals • € 22.2m other provision reversals • € 7.9m gain on building sales (OBX) related to taxes & claims • € 10.9m IAS19 FY18 55

Summary of key financials FY18 € million

Reported Normalized1 FY17 FY18 FY17 FY18 % Δ € 30.9m linked to Total operating income 3,023.8 3,850.2 3,023.8 3,850.2 27.3% amortization on intangible assets Operating expenses 2,425.9 3,279.1 2,425.9 3,279.1 35.2% (purchase price EBITDA 598.0 571.1 598.0 571.1 -4.5% allocation “PPA” Radial, Ubiway, Margin (%) 19.8% 14.8% 19.8% 14.8% Dynagroup, de EBIT 492.9 393.4 501.6 424.3 -15.4% Buren & Imex) Margin (%) 16.3% 10.2% 16.6% 11.0% Profit before tax 488.7 381.0 497.5 411.9 -17.2% Tax impact of PPA on amortization of Income tax expense 165.8 117.4 168.2 121.4 € 4.1m Net profit 322.9 263.6 329.3 290.4 -11.8% FCF (485.8) 241.2 (500.8) 231.5 Normalized FCF excludes the cash bpost S.A./N.V. net profit (BGAAP) 291.0 262.3 291.0 262.3 -9.8% Radial receives on Net Debt/ (Net cash), at 31 December 292.4 344.8 292.4 344.8 behalf of its customers for performing billing services.

1 Normalized figures are not audited FY18 56

Total operating income € million

FY17 ∆ FY18 % ∆

Transactional mail 807.9 1.4 809.3 0.2% Domestic mail Advertising mail 252.9 -8.6 244.2 -3.4% Press 292.6 -6.6 286.0 -2.2%

Domestic parcels1 224.2 38.1 262.3 17.0% Parcels International parcels 222.6 20.3 242.9 9.1% Logistic solutions2 349.2 707.0 1,056.2 - International mail3 160.4 80.4 240.9 50.1% Additional Value added services 101.5 9.1 110.7 9.0% sources Banking and financial 182.6 -15.5 167.1 -8.5% of revenues Distribution 98.1 2.9 101.0 3.0% Retail & Other4 288.9 2.6 291.4 0.9%

Corporate4 42.9 -4.6 38.3 -10.7% TOTAL 3,023.8 826.4 3,850.2 27.3%

1 Defined as domestic and Belgian in- and outbound 2 Including scope changes: Radial, Leen Menken, BubblePost, Active Ants 3 Including scope changes: Imex, M.A.I.L. Inc. 4 Including one-off operating income (earn-out reversals in Retail & Other and provision reversal + gain on sale OBX in Corporate) FY18 57

Domestic mail underlying volume trend at -5.8% better than guidance of up to -7% Total operating income (revenues), € million

• Elections: local elections on October 14th, impacting FY18 FY17 1,353.4 revenues positively by € 5.2m (+0.4% on overall domestic mail volume). • Transactional Mail: continued e-substitution and Working day rationalization but positive impact of specific mailings (e.g. 2.0 impact GDPR, MIFID II) in 2Q18. • Advertising Mail: excluding elections, unfavorable media mix evolution in Direct Mail and higher competition in Unaddressed. Elections 5.2 FY18 advertising volumes are impacted by shift towards transactional & press categories. • Press: newspapers trend (excl. distribution day effects) better than in FY17; periodicals impacted by digitization and Volume -70.7 rationalization. Reported Underlying 1 FY17 4Q18 FY18 FY17 4Q18 FY18 Price/mix 49,6 Transactional mail -8.3% -5.3% -5.3% -8.1% -6.6% -5.7% Advertising mail 1.5% -3.5% -5.7% 1.5% -6.3% -7.2% Press -3.7% -2.9% -3.8% -3.7% -2.9% -3.8% Domestic Mail -5.9% -4.6% -5.2% -5.8% -6.2% -5.8% FY18 1,339.5 • Price increase on non-regulated items as of 1 January (12 months) and SUB as of 1 March (10 months) partly offset by shift towards cheaper products. -13.8

1 1Q18 had 1 working day less on franking machines, 2Q18 1 working day less on stamps, 3Q18 1 working day more on franking machines and 2 more on stamps and 4Q18 2 working days more on franking machines vs. the same quarters of 2017. FY18 58

Robust organic domestic and international parcels performance; Logistic Solutions driven by positive contribution from M&A Total operating income (revenues), € million

FY17 796.1

• Increase driven by consolidation of full 12 months in FY18 Radial 685.5 vs. 6 weeks (as of 16 November 2017) last year. Radial revenues reported under Logistic Solutions.

FY17 1,481.6 rebased • Reported volume growth of +23.3% driven by e-commerce growth and the online C2C product offering. • Price/mix of -5.1%: price increase fully offset by product 1 38,1 Domestic Parcels & client mix effect.

• Growth driven by the US (despite negative FX impact) and International parcels 20.3 Europe, especially UK.

2 Logistic Solutions 21.5 • Mainly consolidation of Leen Menken and Active Ants .

FY18 1,561.4

+79.8

1 Defined as domestic and Belgian in- and outbound 2 Active Ants is included in FY18 for 10 months as of 1 April 2018, with 4 months in 4Q18 FY18 59

Additional sources of revenues reflect acquisitions Total operating income (revenues), € million

FY17 831.5

Scope -1.2

One-off 10.3 • de Buren and Dyna earn-out reversals variance booked in Retail & Other. FY17 840.6 rebased • Consolidation of Imex & M.A.I.L., Inc. as of January 2018, higher volumes from Asia (mainly registered) and inbound International mail 80,4 mail. • Mainly driven by management of cross-border fines VAS 9.1 • Lower revenues from bpost bank savings accounts due to Banking & Financial -15.5 low interest rate environment; lower revenue from financial transactions managed on behalf of the State.

Distribution 2.9 • Decline in Alvadis due to a legislative change on prepaid mobile cards in June 2017 excluding revenue Retail & Other -6.6 reclassification

• Growth at Ubiway retail offset by lower sales bpost retail 911.0 FY18 products.

+70.4 FY18 60

Organic costs impacted by growth and cost inflation in core business Operating expenses excl. depreciation and amortization, € million

FY17 2,425.9 • 2Q17 and 4Q18 IAS19 non-cash gains (net € +4.4m). • 3Q17 and 2Q18 provision reversals (net € +2.3m). One-off 10.8 • 2Q18 € +4.1m related to support on specific projects and ATM attacks. Consolidation effect (opex 775.1 acquisitions)1 FY17 3,211.8 rebased • Increase driven by international activities (mail & parcels) and domestic parcels growth (subcontractors). Transport 39,8 • Additional headcount (mainly parcels growth & absenteeism), salary indexation and merit increases only Payroll & Interim 8.6 partly compensated by better productivity, favourable FTE mix, tax shift and unpaid hours due to strikes.

SG&A 27.8 • Higher rent & rental (NBX, additional fleet), insurance, energy costs (higher fuel price, larger fleet) and maintenance and repairs. Other costs -8.8 • Mainly lower materials costs and other operating charges. FY18 3,279.1

+67.4

1 Opex of Radial, Bubble Post, Leen Menken, Imex, M.A.I.L., Inc., Active Ants (see appendix for more detail) FY18 61

Positive variance in net cash movement thanks to improved FCF

Reported - € million FY17 FY18 Delta Cash flow from operating activities +266.1 +362.0 +95.8 Cash flow from investing activities -751.9 -120.8 +631.1 Operating free cash flow -485.8 +241.2 +727.0 Financing activities +416.8 -29.5 -446.4 Net cash movement -68.9 +211.7 +280.6 Capex -121.3 -114.9 +6.4

CF from operating activities: • CF from operating activities before changes in working capital: € 348.2m • Collected cash due to Radial’s clients: € 9.7m • Decrease in working capital: € 4.1m

CF from investing activities: • Capex (€ 114.9m) and cash outflows related to acquisitions (€ 61.4m) • Partly compensated by proceeds from sale of buildings: € 55.6m

CF from financing activities, mainly: • Bond issuance (€ 650.0m) and net increase commercial papers & loans more than offset by the reimbursement of the bridge loan (€ -691.6m), dividend pay-out (€ 262.0m) and costs related to borrowing

1 Operating free cash flow = cash flow from operating activities + cash flow from investing activities Additional info New business unit structure 63

New business unit structure – Mail & Retail in € million

expected 1Q18 2Q18 3Q18 4Q18 FY18 IFRS16 External operating income 497.2 492.0 456.5 506.0 1,951.7 Transactional 199.6 199.0 172.7 201.1 772.4 Advertising 63.4 60.1 55.1 65.6 244.2 Press 88.7 87.0 82.9 91.4 350.0 Proximity and convenience retail network 120.0 119.4 120.1 120.4 479.9 Value added services 25.5 26.6 25.7 27.4 105.2 Internal operating income 39.7 39.0 37.4 43.5 159.6 Total operating income 536.9 531.0 493.8 549.5 2,111.3 Operating expenses 422.6 425.2 431.7 448.2 1,727.6 -45.5 EBITDA 114.4 105.8 62.2 101.3 383.6 +45.5 Margin (%) 21.3% 19.9% 12.6% 18.4% 18.2% Depreciation & Amortization 8.5 12.2 10.0 19.8 50.5 +43.4 EBIT 105.8 93.6 52.2 81.5 333.2 +2.1 Margin (%) 19.7% 17.6% 10.6% 14.8% 15.8% New business unit structure 64

New business unit structure – Parcels & Logistics Europe and Asia in € million

expected 1Q18 2Q18 3Q18 4Q18 FY18 IFRS16 External operating income 177.5 184.7 176.1 218.7 757.0 Parcels BeNe 76.0 79.5 78.1 105.1 338.7 E-commerce logistics 32.7 34.3 31.8 29.2 128.0 Cross-border 68.8 70.9 66.3 84.3 290.4 Internal operating income 4.8 6.1 10.7 13.7 35.3 Total operating income 182.3 190.8 186.8 232.3 792.3 Operating expenses 168.9 180.8 180.8 204.9 735.5 -9.9 EBITDA 13.4 9.9 6.0 27.4 56.8 +9.9 Margin (%) 7.4% 5.2% 3.2% 11.8% 7.2% Depreciation & Amortization 2.0 2.4 2.3 11.4 18.1 +9.7 EBIT 11.5 7.6 3.7 16.0 38.7 +0.2 Margin (%) 6.3% 4.0% 2.0% 6.9% 4.9% New business unit structure 65

New business unit structure – Parcels & Logistics North America in € million

expected 1Q18 2Q18 3Q18 4Q18 FY18 IFRS16 External operating income 240.0 249.1 238.5 377.1 1,104.8 E-commerce logistics 220.6 226.2 217.1 354.1 1,017.9 International mail 19.4 23.0 21.4 23.1 86.8 Internal operating income 1.2 1.7 3.1 3.6 9.6 Total operating income 241.2 250.8 241.7 380.8 1,114.4 Operating expenses 231.8 241.4 239.1 356.1 1,068.5 -20.9 EBITDA 9.4 9.4 2.5 24.6 45.9 +20.9 Margin (%) 3.9% 3.7% 1.1% 6.5% 4.1% Depreciation & Amortization 9.1 8.2 8.3 9.3 35.0 +19.5 EBIT 0.3 1.1 (5.8) 15.3 10.9 +1.4 Margin (%) 0.1% 0.5% -2.4% 4.0% 1.0% New business unit structure 66

New business unit structure – Corporate in € million

expected 1Q18 2Q18 3Q18 4Q18 FY18 IFRS16 External operating income 1.8 2.5 2.7 29.8 36.8 Internal operating income 92.7 93.2 86.0 86.3 358.2 Total operating income 94.6 95.7 88.6 116.1 395.0 Operating expenses 88.5 78.1 80.6 62.6 309.8 -27.4 EBITDA 6.0 17.6 8.1 53.5 85.2 +27.4 Depreciation & Amortization 11.2 11.5 11.7 8.9 43.3 +27.5 EBIT (5.2) 6.1 (3.6) 44.6 41.9 -0.1 IFRS16 67

IFRS 16: Main impacts 2019 in € million

IFRS 16 impact on 2019

Decrease as rent & rental expenses to be Operating expenses ~-104 recognized as depreciation and interest costs

EBITDA ~+104 Increase due to lower rent & rental costs

Increase due to new depreciation of right-of-use D&A ~+100 assets Marginal increase due to opex and depreciation EBIT ~+4 impacts Increase due to interest expense from unwinding Net financial costs ~+8 of the discount of the lease liability

Leasing-related cash outflows transferred to CF CF from operating activities ~+104 from financing activities Leasing-related cash outflows transferred from CF from financing activities ~-104 CF from operating activities

Assets & Liabilities ~418 IFRS16 68

IFRS 16: Main impacts 2019 per business unit in € million

Parcels & Parcels & Logistics Logistics M&R Corporate Group Europe & North Asia America Operating expenses ~-45 ~-10 ~-21 ~-27 ~-104

EBITDA ~+45 ~+10 ~+21 ~+27 ~+104

D&A ~+43 ~+10 ~+20 ~+27 ~+100

EBIT ~+2 ~0 ~+1 ~0 ~+4 Belgian State 69 bpost’s long term relationship with the Belgian State

State as a long term bpost provides SGEIs2 on State as important shareholder behalf of the State customer Belgian State has 51% shares 2016-2020 State is a key commercial bpost’s board is composed of 2 press distribution contracts client to bpost 5 board members1 and CEO (newspapers & periodicals) Several other agreements in appointed by the Belgian State Sixth management contract for place with the State, such as and 6 independent directors other SGEIs European license plates (won Belgian State supports a regular by bpost through tender) Contractual amounts (excl. dividend policy inflation3, volume impact & sharing of efficiency gains) of € 261.0m in 2016 (actual amount: € 264.9m), € 260.8m in 2017 (actual amount: € 270.0m), € 257.6m in 2018 (actual amount: € 271.4m), € 252.6m in 2019 and € 245.6m in 2020 Shareholder # shares

Belgian State 102,075,649 Press Free float 97,925,295 Retail Financial services

1 Since the Ordinary General Meeting of Shareholders of May 9, 2018 there are only 3 State appointed board members (incl. CEO). The Belgian State requested bpost to postpone the appointment of three directors to be nominated by the Belgian State to a later date. 2 SGEI stands for Services of General Economic Interest cfr. slide 21 3 All amounts need to be adjusted for inflation on a cumulated yearly basis USO & SGEI 70

Management contracts and press concessions will be (re)negotiated in the timing of the plan

Universal Service Obligation (USO) 6th Management Contract Press concessions

Scope • Collect, sort, transport, & Services not typically • Also part of SGEIs distribute letter mail up to associated with mail • Newspaper early delivery 2kg, parcels up to 10kg, and operators (SGEI), e.g., 6x/week parcels up to 20kg from other • Retail network EU member states • Periodical delivery • Cash at Counter 5x/week • 1 access point per municipality • Election mail (distribution) • Quality control obligation of max 7 complaints per 10k • Collect and deliver 5x/week • Cash payment of pensions at home deliveries Full territory of Belgium • • ~3,000 FTEs • USO pricing constraints • Provide adequate information on USO products and services • Quality control obligation (95% of prior mail/parcels D+1, 97% D+2)

Timing • End of 2023, renewable by • End of 2020 • End of 2020 consecutive terms of 5 years • Notified and validated by • Notified and validated by • Complementary management European Commission under European Commission under contract granted by the State1 State Aid rules State Aid rules State compensation possible in case €271m2 state compensation in 2018 of USO being financial burden

1 Approval process is not yet finalized 2 Amount including inflation, volume variance and sharing of efficiency gains European mail market 71

A relatively resilient mail market vs. other European operators

Addressed mail volume per capita 2018 2008-18 CAGR for addressed mail operator level* volumes as reported by major incumbent European postal operators, percent

1 CH 225 -2,1% DE 5

5 DE 200 -3,4% CH 1

10 UK 197 (1) -3,4% AU 11

11 AU 184 -4,0% BE 8

2 FR 164 (1) -4,7% UK 10 (2)

3 SW 146 -5,1% SW

3 2 EU 144 -5,1% FR (2)

8 BE 125 -5,9% EU

4 4 NL 106 -9,2% NL

7 7 IT 50 -9,3% IT

6 6 DK 46 -13,1% DK

Note: definition of addressed mail may differ by operator 5 Includes mail communication and dialogue marketing 10 Includes inland addressed mail 1 Includes addressed mail 6 Includes addressed mail 11 Includes letter mail and addressed direct mail / media post 2 Includes addressed mail 7 Includes addressed mail (publishers services excl.) 3 Includes addressed mail 8 Includes addressed mail excluding press * Excludes domestic competitors 4 Includes addressed mail 9 Includes all domestic mail (1) 2017 data (2) 2008-17 data SOURCE: Company information; Annual reports; Investor presentations; IPC; Eurostat European mail market 72

A relatively resilient mail market vs. other European operators

Addressed mail volume per capita 2018 2008-18 CAGR for addressed mail operator level* volumes as reported by major incumbent European postal operators, percent

1 CH 225 -2,1% DE 5

5 DE 200 -3,2% CH 1

10 UK 197 (1) -3,5% AU 11

11 AU 184 -4,0% BE 8

3 SW 171 (1) -4,5% SW 3 (2)

2 FR 164 (1) -4,7% UK 10 (2)

2 EU 148 -5,1% FR (2)

8 BE 125 -5,9% EU

4 4 NL 106 -9,1% NL

7 7 (2) IT 54 (1) -9,4% IT

6 6 (2) DK 53 (1) -13,1% DK

• Email: [email protected] Saskia Dheedene • Direct: +32 (0) 2 276 76 43 • Mobile: +32 (0) 477 92 23 43 Head of Investor Relations • Address: bpost, Centre Monnaie, 1000 Brussels, Belgium

• Email: [email protected] Stéphanie Voisin • Direct: +32 (0) 2 276 21 97 • Mobile: +32 (0) 478 48 58 71 Manager Investor Relations • Address: bpost, Centre Monnaie, 1000 Brussels, Belgium