Specialist
Former C-level executive at Royal Mail plc
Agenda
- Competitive landscape, highlighting impacts of labour unionisation
- Automation levels, delivery quality and capacity
- GLS (General Logistics Systems) (LON: RMG) B2C and B2B offerings
- Expansion opportunities beyond Europe, core competencies and success factors
Questions
1.
Could you give an update on market volumes and any itemisation you can bring in to support these numbers? How are 2C and 2B parcel volumes developing?
2.
Can you give a rough idea of the magnitude of the guidance understatement you outlined?
3.
There has been significant growth in volume and supply from incumbents and from Amazon. How is pricing developing? What are the biggest pricing drivers?
4.
There don’t seem to be many concerns about a meaningful shift in volume back to bricks-and-mortar retail which would reduce the parcel demand. A large part of the demand increase will be structural and remain, but do you think there is a meaningful risk to the sensitivities and pricing on the basis of fixed-asset increase on a potential reversal of some of the volume from e-commerce?
5.
How is GLS [General Logistics Systems] positioned within the competitive landscape? Do you think it has understated the guidance and its volumes could grow meaningfully? What do you think of its ability to capture market growth and price in line with the market?
6.
GLS is only present in 25 countries and only in Europe. How does that impact the company’s decision making process when picking an international freight supplier?
7.
What is the growth rate of DDI [day definite international] vs TDI [time definite international]?
8.
TDI is DHL’s most high-EBIT margin business. It’s around 12% EBIT margin. Is that what you’d expect in the DDI segment as well?
9.
Customers in last-mile 2C are developing increasingly shorter delivery time expectations, and the international business is moving from time definite to day definite. Will there be an even bigger trend? Can it go past day definite where you don’t even need to deliver within an individual day?
10.
Parcel volume growth remained strong until mid-April 2021 when there was a slowdown largely due to the high volumes experienced in 2020. Do you think there is any meaningful risk of parcel volume reductions to GLS specifically? Where might it be losing share?
11.
How is GLS impacted by being part of the Royal Mail business? Royal Mail has struggled for a number of years and GLS has been the main cash-generating part of the business. Has this impacted the ability to access capital and its CAPEX transformation plans, or are they run pretty separately?
12.
57% of GLS’s volumes go through B2C. How has its B2C positioning developed? Do you think this is a vindication of its strategy? Could there be further gains?
13.
Do you think parcel lockers can gain meaningful market share outside of Poland? If yes, do you think lockers are likely to have a meaningful impact on pricing?
14.
Is having very built-out networks a UK specific thing? Are there any countries where the merchant decides which type of delivery format to use?
