Slide 1: Austrian Post Investor Presentation H1 2017
AUSTRIAN POST INVESTOR PRESENTATION H1 2017 Walter Oblin/CFO Vienna, August 10, 2017
Slide 2: 1. Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results H1 2017 4. Outlook 2017 INVESTOR PRESENTATION | Investor Relations | Vienna, August 10, 2017 2
Slide 3: Highlights H1 2017
HIGHLIGHTS H1 2017 Market: Basic trends continue: about 4-5% drop in addressed letter volumes, dynamic parcel growth >10% but tough competition Revenue: H1 Group revenue up 1.9% (excl. trans-o-flex), decline in mail revenue more than offset by parcel growth Earnings: 3.6% EBIT increase in H1 based o
Slide 4: Revenue increase driven by dynamic parcel growth
REVENUE INCREASE DRIVEN BY DYNAMIC PARCEL GROWTH REVENUE DEVELOPMENT EUR m 1,071.1 GROUP: +1.9% (Q2: -0.3%) +1.9% • Quarterly development impacted by seasonal effects 134.8 936.3 953.7 (Q1: +2 working days; Q2: -2 working days) 199.5 +16.7% 232.7 PARCEL & LOGISTICS: +16.7% (Q2: +16.1%) • Basic H1 20
Slide 5: Improved operating result (EBIT)
IMPROVED OPERATING RESULT (EBIT) EBIT DEVELOPMENT EUR m MAIL & BRANCH NETWORK: • EBIT rise of EUR 1.7m in H1 +3.6% (EUR -0.7m in Q2) 102.2 • Negative interest rate effect in 2016 for staff- 98.6 +2.1 -0.3 related provisions +1.7 • Additional earnings contribution from increased delivery of packets (
Slide 6: 2. Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results H1 2017 4. Outlook 2017 INVESTOR PRESENTATION | Investor Relations | Vienna, August 10, 2017 6
Slide 7: Clear strategic priorities
CLEAR STRATEGIC PRIORITIES DEFENDING MARKET LEADERSHIP IN PROFITABLE GROWTH 1. THE CORE BUSINESS 2. IN SELECTED MARKETS Safeguarding market position in a competitive Focusing and performance enhancement environment ENHANCING EFFICIENCY AND CUSTOMER ORIENTATION AND 3. OPTIMISING THE COST STRUCTURE 4.
Slide 8: Quality leadership in Austria
1 QUALITY LEADERSHIP IN AUSTRIA MAIL & BRANCH NETWORK PARCEL & LOGISTICS • Basic trend in mail volumes about minus 4-5% • Dynamic parcel growth >10% but tough competition • Volatile business in direct mail and media post, • Highest quality standards and level of service individualised solutions dema
Slide 9: Growth in selected markets
2 GROWTH IN SELECTED MARKETS GROWTH FOCUS ON PARCEL & LOGISTICS GERMANY CEE/SEE Austrian Post International: Focus on profitable parcel business • Growth in the international mail growth business to EUR 25.2m in • Ongoing positive volume development revenue (+11.4%) (+8.7%) and strong export growth
Slide 10: Staff structure in Austria
3 STAFF STRUCTURE IN AUSTRIA FULL-TIME EQUIVALENTS IN THE AUSTRIAN CORE BUSINESS (average for period) 21,926 21,003 -368 FTE 490 20,217 20,064 Change H1 2016/2017: 1,891 19,417 18,790 18,233 – 519 Civil servants 2,490 17,570 3,350 17,202 – 424 Employees old CWA 3,858 9,397 4,374 + 575 Employees new
Slide 11: Ongoing development of new customer solutions
ONGOING DEVELOPMENT OF 4 NEW CUSTOMER SOLUTIONS CURRENT LOGISTICS 4.0 OUTSTANDING CUSTOMER EXPANSION OF 24/7 NEW TECHNOLOGIES AND SATISFACTION SELF-SERVICE SOLUTIONS INNOVATIONS • Record high customer satisfaction • 280 pick-up stations +43% • Largest e-vehicle fleet in Austria index with more than
Slide 12: 3. Group Results H1 2017
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS H1 2017 4. Outlook 2017 INVESTOR PRESENTATION | Investor Relations | Vienna, August 10, 2017 12
Slide 13: H1 2017 financial indicators at a glance
H1 2017 FINANCIAL INDICATORS AT A GLANCE H1 2016 H1 2017 Revenue down YOY due to deconsolidation Revenue (EUR m) 1,071.1 953.7 of trans-o-flex Revenue excl. 936.3 953.7 Revenue increase of 1.9% trans-o-flex (EUR m) EBITDA margin 12.8% 15.0% Improved EBITDA margin of 15.0% EBIT margin 9.2% 10.7% Enha
Slide 14: Key income statement indicators
KEY INCOME STATEMENT INDICATORS H1 H1 Q2 Q2 EUR m 2016 2017 % ∆ 2016 2017 Revenue increase driven by strong Revenue excl. trans-o-flex 936.3 953.7 1.9% 17.4 466.6 465.0 parcel growth Revenue 1,071.1 953.7 -11.0% -117.4 478.3 465.0 Other operating income 36.2 27.7 -23.4% -8.5 12.7 13.0 Higher transpo
Slide 15: Mail & Branch Network Division: H1 2017 revenue development
MAIL & BRANCH NETWORK DIVISION: H1 2017 REVENUE DEVELOPMENT LETTER MAIL & MAIL SOLUTIONS (EUR m) DIRECT MAIL/MEDIA POST (EUR m) • Mail volumes down 4-5% on average in recent • Seasonal fluctuations: strong Q1 direct mail quarters business (Easter), lower direct mail revenue in Q2 • Positive effects
Slide 16: Mail & Branch Network Division: income statement indicators
MAIL & BRANCH NETWORK DIVISION: INCOME STATEMENT INDICATORS H1 H1 Q2 Q2 EUR m 2016 2017 % ∆ 2016 2017 Revenue 736.8 720.9 -2.2% -15.8 366.3 348.5 Positive election effects of EUR • Letter Mail & Mail-Solutions 403.5 395.5 -2.0% -7.9 198.6 189.2 11.5m in Q2 2016 • Direct Mail 206.2 203.1 -1.5% -3.1 1
Slide 17: Parcel & Logistics Division: H1 2017 revenue development
PARCEL & LOGISTICS DIVISION: H1 2017 REVENUE DEVELOPMENT REVENUE (EUR m) 334.3 PARCEL & LOGISTICS DIVISION: • H1 2017 revenue up 16.7% following sale of trans-o-flex (+14.1% excl. M&BM Express segment change) 134.8 Germany1 +16.7% 232.7 CEE/SEE: +22.6% (Q2: +20.9%) • Segment change of M&BM Express (
Slide 18: Parcel & Logistics Division: income statement indicators
PARCEL & LOGISTICS DIVISION: INCOME STATEMENT INDICATORS H1 H1 Q2 Q2 EUR m 2016 2017 % ∆ 2016 2017 Revenue excl. trans-o-flex 199.5 232.7 16.7% 33.2 100.3 116.5 +14.1% revenue increase excl. Revenue 334.3 232.7 -30.4% -101.6 112.1 116.5 segment change • Premium 227.5 112.0 -50.8% -115.5 60.6 56.8 M&
Slide 19: Solid balance sheet structure
SOLID BALANCE SHEET STRUCTURE BALANCE SHEET AS AT JUNE 30, 2017 Financial liabilities of only EUR m EUR 6m 1,450.0 Other financial 1,450.0 liabilities 5.7 Cash and cash equivalents/ 282.5 Securities1 Liabilities/ 360.7 Structure of provisions Other EUR m Financial assets/ Liquid financial → No pensi
Slide 20: Robust cash flow in H1 2017
ROBUST CASH FLOW IN H1 2017 CASH FLOW DEVELOPMENT EUR m Cash flow from operating activities at the prior-year level Improved operating free cash 108.9 flow in H1 2017 93.2 -16.9 +1.1 -11.1 -3.1 63.9 -15.0 Cash flow CAPEX Other Operating free CAPEX new Acquisitions/ Changes in Free cash flow from exc
Slide 21: Investments and project development in 2017
INVESTMENTS AND PROJECT DEVELOPMENT IN 2017 CURRENT INFRASTRUCTURE PROJECTS REAL ESTATE PROJECT DEVELOPMENT • Opening of the Wernberg • New corporate headquarters: Parcel Centre in Carinthia completion Q3 2017, relocation Q4 2017 • Fully operational since June 2017 • Implementation “in time & budget
Slide 22: 4. Outlook 2017
1. Highlights and Overview 2. Strategy Implementation 3. Group Results H1 2017 4. OUTLOOK 2017 INVESTOR PRESENTATION | Investor Relations | Vienna, August 10, 2017 22
Slide 23: Outlook for 2017
OUTLOOK FOR 2017 • 5% volume decline p.a. of addressed letter mail due to electronic substitution Market • Volatile direct mail depending on advertising budgets and economic environment • Steady increase in parcel volumes against the backdrop of intense competition • Stable or slightly higher revenu
Slide 24: Contact
CONTACT Austrian Post Financial calendar 2017/2018 Investor Relations November 15, 2017 Interim report Q1-3 2017 Haidingergasse 1, 1030 Vienna March 15, 2018 Annual results 2017 Website: www.post.at/ir April 19, 2018 Annual General Meeting E-mail: investor@post.at April 30/ May 3, 2018 Ex-dividend d