Slide 1: Austrian Post Q1-3 2014 Investor Presentation
AUSTRIAN POST Q1-3 2014 INVESTOR PRESENTATION Georg Pölzl/CEO, Walter Oblin/CFO Vienna, November 12, 2014
Slide 2: Highlights and overview; Group results; Outlook
1. Highlights and overview 2. Group results Q1-3 2014 3. Outlook 2014 INVESTOR PRESENTATION Q1-3 2014 I Investor Relations I Vienna, November 12, 2014 2
Slide 3: Highlights Q1-3 2014
HIGHLIGHTS Q1-3 2014 Group revenue at the prior-year level (Q1-3 and Q3: -0.1%) Mail revenue influenced by election effects; ongoing trend towards 1 Revenue e-substitution and declining direct mail volumes Solid growth in the parcel business continues Continuing efficiency enhancement and co
Slide 4: Revenue development impacted by election effects
REVENUE DEVELOPMENT IMPACTED BY ELECTION EFFECTS Elections 2013 Elections 2014 State Parliaments in Carinthia and Lower Austria Army referendum Referendum on Mariahilferstraße EU elections Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Vienna referend
Slide 5: Solid revenue development in Q1-3 2014
SOLID REVENUE DEVELOPMENT IN Q1-3 2014 Revenue development EUR m Q1-3: -0.1% Q3: -0.1% 1,734.2 Q1 Q2 Q3 Q1 Q2 Q3 1,732.7 -12.2 -1.3 +7.9 +4.7 +7.9 -8.2 Election effects 2013 vs. 2014: -2m EUR +4m EUR -6m EUR 1,107.7 1,086.0 Revenue development excl. election effects: -10.2m EUR -5.3m EUR -2.2m EUR Q
Slide 6: Slight EBIT rise: earnings development impacted by special effects
SLIGHT EBIT RISE: EARNINGS DEVELOPMENT IMPACTED BY SPECIAL EFFECTS EBIT development Q3 EBIT development in detail: EUR m +33.2 Corporate: - 7.4m EUR: parameter Mail & Branch Network: changes for interest- Q1-3: +0.8% - 6m EUR: election effects bearing staff-related - 4.0m EUR: parameter provis
Slide 7: Clear strategic priorities in 2014
CLEAR STRATEGIC PRIORITIES IN 2014 1 DEFENDING MARKET 2 PROFITABLE GROWTH IN LEADERSHIP IN THE CORE SELECTED MARKETS BUSINESS Performance enhancement and Further consolidation of the exploitation of market potential strong market position 3 ENHANCING EFFICIENCY 4 CUSTOMER ORIENTATION AND FLEXIBILISA
Slide 8: 1. Market leadership in the core business
1. MARKET LEADERSHIP IN THE CORE BUSINESS Inflation-based adjustment of postal Direct mail continues to be an important part rates for letters in March 2015 of the advertising mix Approval by the regulator on Sept. 15, 2014 Advertising folder “KUVERT“ well established in the marketplace First
Slide 9: 2. Growth in selected markets
2. GROWTH IN SELECTED MARKETS Investments in growth markets to exploit future growth potential Germany (trans-o-flex) Pharma transport in line with GDP throughout Germany since October 1, 2014 Continuation of structural measures Takeover of distribution companies Turkey (now direct control ove
Slide 10: Investments in a modern logistics infrastructure
INVESTMENTS IN A MODERN LOGISTICS 3. INFRASTRUCTURE Logistics centre in Upper Austria: the biggest Total area of 82,000 m2 investment project in recent years Photovoltaic plant with 496 kWp 650 employees Investment costs EUR 50m Full operations: August 2014 Sorted volumes / capacity 1.6m letters per
Slide 11: Continuing optimisation of the cost structure
CONTINUING OPTIMISATION OF THE COST 3. STRUCTURE Full time equivalents (FTE) in the core business in Austria (average for the period) -647 FTE 21,700 Change 20,786 20,010 19,841 Q1-3 2013/2014 1,891 19,359 18,712 - 699 Civil servants 2,490 3,350 3,868 - 453 Old agreement 9,852 4,373 + 505 New agreem
Slide 12: 4. Customer orientation and innovation
4. CUSTOMER ORIENTATION AND INNOVATION Ongoing roll-out of innovative 24/7 Increasing number of Post App users self-service solutions Accum. App downloads per month 75,000 Already 15,000 “yellow 53,741 61,745 slips“ via the Post App 45,147 (E-notification) 29,902 Parcel rerouting also possible w
Slide 13: Highlights and overview; Group results; Outlook
1. Highlights and overview 2. Group results Q1-3 2014 3. Outlook 2014 INVESTOR PRESENTATION Q1-3 2014 I Investor Relations I Vienna, November 12, 2014 13
Slide 14: Financial indicators Q1-3 2014 at a glance
FINANCIAL INDICATORS Q1-3 2014 AT A GLANCE Q1-3 2013 Q1-3 2014 Revenue at the same level as in the previous year 1 Revenue (EUR m) 1,734.2 1,732.7 (-0.1%) EBITDA margin of 11.6% reflects cost discipline; 2 EBITDA margin 12.8% 11.6% special effects in the previous year 3 EBIT margin 7.6% 7.7% Stable
Slide 15: Relevant revenue and earnings effects in Q3 2014
RELEVANT REVENUE AND EARNINGS EFFECTS IN Q3 2014 Q3 2013 Q3 2014 Revenue effects Austrian federal No significant revenue elections with revenue contributions from elections effects in Letter Mail, Direct Mail and Media Post +6m EUR Structural Impairment loss on No material impairment measures goodwi
Slide 16: Key income statement indicators
KEY INCOME STATEMENT INDICATORS Change EUR m Q1-3 2013 Q1-3 2014 % abs. Q3 2013 Q3 2014 Revenue 1,734.2 1,732.7 -0.1% -1.6 561.1 560.8 Revenue at the Total operating income 1,784.4 1,782,8 -0.1% -1.6 577.2 578.4 prior-year level Raw materials and services -556.5 -545.4 -2.0% -11.2 -184.1 -182.6 used
Slide 17: Mail & Branch Network division: revenue trends Q1-3 2014
MAIL & BRANCH NETWORK DIVISION: REVENUE TRENDS Q1-3 2014 Letter Mail/Mail Solutions (EUR m) Direct Mail/Media Post (EUR m) Reduced election effects compared to previous Pressure of online business on retail stores and year (especially Q3) traditional mail order companies still ongoing Growth i
Slide 18: Mail & Branch Network division: key income statement indicators
MAIL & BRANCH NETWORK DIVISION: KEY INCOME STATEMENT INDICATORS Change EUR m Q1-3 2013 Q1-3 2014 % abs. Q3 2013 Q3 2014 Revenue (external sales) 1,107.7 1,086.0 -2.0% -21.7 353.1 344.9 Quarterly revenue Letter Mail & Mail Solutions 580.9 580.8 0.0% -0.1 183.5 183.1 development shaped by election e
Slide 19: Parcel & Logistics division: revenue trends Q1-3 2014
PARCEL & LOGISTICS DIVISION: REVENUE TRENDS Q1-3 2014 Revenue (EUR m) Regional mix in % Q1-3: +3.3% South East and Eastern Europe: +9.0% Strong revenue growth and further 627.5 647.9 productivity increases CEE +9.0% 9% Good development in Slovakia and 8% Hungary 35% Austria: +6.0% Austria 34% +6
Slide 20: Parcel & Logistics division: key income statement indicators
PARCEL & LOGISTICS DIVISION: KEY INCOME STATEMENT INDICATORS Change Q1-3 EUR m Q1-3 2013 2014 % abs. Q3 2013 Q3 2014 Revenue (external sales) 627.5 647.9 3.3% 20.4 208.5 216.3 Revenue increase of Premium Parcels 474.1 486.6 2.6% 12.5 159.8 163.2 3.3% in Q1-3 and 3.8% in Q3 Standard Parcels 130.1
Slide 21: Sound balance sheet structure
SOUND BALANCE SHEET STRUCTURE Balance sheet as of September 30, 2014 (EUR m) Liquid financial resources of EUR 276m Financial liabilities of only 1,604.1 1,604.1 EUR 19m Cash and cash equivalents/ Financial liabilities 18.9 Securities 276.4 Liabilities/ Other2 362.8 Financial investments1 118.8 Stab
Slide 22: Robust cash flow
ROBUST CASH FLOW Cash flow development (EUR m) Cash flow from operating activities slightly below the prior-year level – includes Q1-3 2014 wage-related contributions from previous periods 198.2 Free cash flow at the same level as the 164.6 previous year -33.6 108.6 +13.0 120.7 -56.0 -0.8 Operat
Slide 23: Highlights and overview; Group results; Outlook
1. Highlights and overview 2. Group results Q1-3 2014 3. Outlook 2014 INVESTOR PRESENTATION Q1-3 2014 I Investor Relations I Vienna, November 12, 2014 23
Slide 24: Outlook 2014
OUTLOOK 2014 Decline in letter mail volumes from e-substitution partly offset by product innovations Market Advertising market negatively affected by pressure of online business on environment traditional mail order companies and retail stores Growth in private parcels of 3-6% depending on reg
Slide 25: Contact
CONTACT Austrian Post Financial calendar 2015 Investor Relations March 12, 2015 Annual results 2014 Haidingergasse 1, 1030 Vienna April 15, 2015 Annual General Meeting 2015 Website: www.post.at/ir April 29, 2015 Ex-dividend day/Dividend E-mail: investor@post.at payment date Phone: +43 57767-30401 Ma
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