Slide 1: Austrian Post Investor Presentation Q1 2017
AUSTRIAN POST INVESTOR PRESENTATION Q1 2017 Walter Oblin/CFO Vienna, May 12, 2017
Slide 2: 1. Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results Q1 2017 4. Outlook 2017 INVESTOR PRESENTATION | Investor Relations | Vienna, May 12, 2017 2
Slide 3: Q1 2017 Overview
Q1 2017 OVERVIEW Revenue above the previous year • Basic trends continue: Letter volumes decline by about 5%, Direct Mail and Media Post remain volatile while Parcel volumes up by about 10% REVENUE • Q1 2017 revenue impacted by seasonal effects: Two extra working days, strong Easter business until t
Slide 4: Growth Supported by Positive Seasonal Effects
GROWTH SUPPORTED BY POSITIVE SEASONAL EFFECTS GROUP: REVENUE DEVELOPMENT Seasonal effects increased Group revenue: EUR m • Two working days more than in Q1 2016 • Substantial volume rise for direct mail items and parcels 599.9 592.8 due to strong business in the weeks ahead of Easter (late +4.0% Eas
Slide 5: Revenue Fluctuations Expected at a Quarterly Comparison
REVENUE FLUCTUATIONS EXPECTED AT A QUARTERLY COMPARISON ELECTION EFFECTS IN 2016 WORKING DAYS (2016/2017) EUR m ENTIRE YEAR 2016/2017: -2 WORKING DAYS 11.5 5.8 +2 days 2.0 0.0 Q2 Q3 Q4 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 -1 day -1 day REVENUE CONTRIBUTION FROM ELECTIONS: EUR 19.3M IN 2016 -2 days INV
Slide 6: Improved Operating EBIT
IMPROVED OPERATING EBIT EBIT DEVELOPMENT EUR m +6.4% 53.9 54.4 MAIL & BRANCH NETWORK: 51.1 -0.8 +1.6 • EBIT EUR 2.5m higher than in Q1 2016 +2.5 • Good top line development, further efficiency increases and stringent cost discipline PARCEL & LOGISTICS: • EBIT up EUR 1.6m in Q1 2017 to EUR 9.4m • In
Slide 7: 2. Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results Q1 2017 4. Outlook 2017 INVESTOR PRESENTATION | Investor Relations | Vienna, May 12, 2017 7
Slide 8: Clear Strategic Priorities
CLEAR STRATEGIC PRIORITIES DEFENDING MARKET LEADERSHIP IN PROFITABLE GROWTH IN SELECTED 1. THE CORE BUSINESS 2. MARKETS Safeguarding of market position in a competitive Focusing and performance enhancement environment ENHANCING EFFICIENCY AND CUSTOMER ORIENTATION AND 3. OPTIMISING THE COST STRUCTURE
Slide 9: Quality Leadership in Austria
1 QUALITY LEADERSHIP IN AUSTRIA CONSISTENT FOCUS ON CUSTOMER NEEDS EFFICIENCY IN LOGISTICS AND DELIVERY LETTER MAIL/DIRECT MAIL: LETTERS • New product structure suitable PACKETS for e-commerce • Expansion of digital service PARCELS portfolio for business customers PARCELS: • Best service compared to
Slide 10: Growth in Selected Markets
2 GROWTH IN SELECTED MARKETS GROWTH FOCUS ON PARCEL & LOGISTICS CEE/SEE GERMANY Focus on profitable growth in the Austrian Post International: parcel business • Growth in the international mail • Ongoing positive volume development business to EUR 13.5m (+7.2%) (+9.6%) and strong export growth AEP:
Slide 11: Staff Structure in Austria
3 STAFF STRUCTURE IN AUSTRIA FULL TIME EQUIVALENTS IN THE CORE BUSINESS IN AUSTRIA (average for the period) 21,926 Change 490 21,003 -448 FTE 20,217 20,064 Q1 2016/Q1 2017: 1,891 19,417 18,790 – 481 Civil servants 2,490 18,233 3,350 17,605 17,157 – 440 Old CWA 3,858 9,397 4,374 + 474 New CWA 4,775 7
Slide 12: New Customer Solutions Are Well Received
4 NEW CUSTOMER SOLUTIONS ARE WELL RECEIVED 262 PICK-UP STATIONS INCREASING INTEREST IN THE E-LETTER Q1 2017: >480,000 mail items About 90,000 activations already Pick-up Activations stations E-Letter Items per month Nov.13 2014 2015 2016 Mar.17 Feb.17 Mar. 17 Apr.17 19,414 PICK-UP BOXES 660,000 USE
Slide 13: 3. Group Results Q1 2017
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS Q1 2017 4. Outlook 2017 INVESTOR PRESENTATION | Investor Relations | Vienna, May 12, 2017 13
Slide 14: Overview of Q1 2017 Financial Highlights
OVERVIEW OF Q1 2017 FINANCIAL HIGHLIGHTS Q1 2016 Q1 2017 Revenue below the previous year due to Revenue (EUR m) 592.8 488.7 deconsolidation of trans-o-flex Revenue excl. 469.7 488.7 Revenue increase of 4.0% includes seasonal effects trans-o-flex (EUR m) EBITDA margin 11.7% 15.9% Improved EBITDA marg
Slide 15: Key Items of Income Statement
KEY ITEMS OF INCOME STATEMENT EUR m Q1 2016 Q1 2017 % ∆ Revenue excl. trans-o-flex 469.7 488.7 4.0% 19.0 Positive revenue effects: Easter Revenue 592.8 488.7 -17.6% -104.1 business, two more Other operating income 23.5 14.8 -37.2% -8.7 working days, new product structure Raw materials, consumables a
Slide 16: Mail & Branch Network Division: Revenue Development in Q1 2017
MAIL & BRANCH NETWORK DIVISION: REVENUE DEVELOPMENT IN Q1 2017 LETTER MAIL & MAIL SOLUTIONS (EUR m) DIRECT MAIL/MEDIA POST (EUR m) • Decline in letter mail volume of about 5% • Intensified advertising activities before Easter in Q1 (weaker advertising phase in the Holy Week shifted • Two working day
Slide 17: Mail & Branch Network Division: Key Items of Income Statement
MAIL & BRANCH NETWORK DIVISION: KEY ITEMS OF INCOME STATEMENT EUR m Q1 2016 Q1 2017 % ∆ Revenue 370.5 372.4 0.5% 1.9 Improved revenue due to seasonal • Letter Mail & Mail-Solutions 204.9 206.4 0.7% 1.5 effects (Easter, two • Direct Mail 102.9 105.9 2.9% 3.0 more working days) • Media Post 34.3 31.5
Slide 18: Parcel & Logistics Division: Revenue Development in Q1 2017
PARCEL & LOGISTICS DIVISION: REVENUE DEVELOPMENT IN Q1 2017 REVENUE (EUR m) PARCEL & LOGISTICS DIVISION: 222.4 222.3 • Revenue in Q1 2017 up by 17.2% following sale of trans-o-flex (excl. M&BM Express +14.5%) SOUTH EAST/EASTERN EUROPE: +24.5% 123.1 • Segment change of M&BM Express (+ EUR 2.6m; Germa
Slide 19: Parcel & Logistics Division: Key Items of Income Statement
PARCEL & LOGISTICS DIVISION: KEY ITEMS OF INCOME STATEMENT EUR m Q1 2016 Q1 2017 % ∆ Revenue excl. trans-o-flex 99.2 116.2 17.2% 17.0 Revenue growth of 14.5% excl. M&BM Revenue 222.3 116.2 -47.7% -106.1 Express, Bulgaria • Premium 166.9 55.2 -66.9% -111.7 • Standard 46.0 52.8 14.7% 6.8 • Other Parce
Slide 20: Solid Balance Sheet Structure
SOLID BALANCE SHEET STRUCTURE BALANCE SHEET AS AT MARCH 31, 2017 Financial liabilities EUR m of only EUR 6m 1,576.6 1,576.6 Other financial liabilities 5.5 Cash and cash equivalents/ Structure of provisions Securities1 383.4 Liabilities/Other 366.3 EUR m Liquid financial → No pension obligations! Fi
Slide 21: Robust Cash Flow in Q1 2017
ROBUST CASH FLOW IN Q1 2017 CASH FLOW DEVELOPMENT EUR m Cash flow from operating activities above prior-year level Improved operating free cash 61.8 flow in Q1 2017 55.2 -7.4 +0.8 -7.3 -2.6 30.2 -15.0 Cash flow CAPEX Other Operating free CAPEX new Acquisitions Changes in Free cash flow from excl. ne
Slide 22: Investment and Project Development in 2017
INVESTMENT AND PROJECT DEVELOPMENT IN 2017 NEW CORPORATE SORTING CENTER IN THE PROJECT DEVELOPMENT HEADQUARTERS NORTH OF VIENNA NEUTORGASSE • Completion Q3 2017 and • New parcel logistics centre to • Development/expansion of an relocation in Q4 2017 handle growing parcel volumes in historic property
Slide 23: 4. Outlook 2017
1. Highlights and Overview 2. Strategy Implementation 3. Group Results Q1 2017 4. OUTLOOK 2017 INVESTOR PRESENTATION | Investor Relations | Vienna, May 12, 2017 23
Slide 24: Unchanged Outlook for 2017
UNCHANGED OUTLOOK FOR 2017 • 5% volume decline p.a. of traditional letter mail due to electronic substitution Market • Volatile advertising business during the course of the year environment • Growing parcel volumes due to online shopping, intense competition • Target is to maintain 2017 revenue at
Slide 25: Contact
CONTACT Austrian Post Financial calendar 2017 Investor Relations August 10, 2017 Half-Year Financial Report 2017 Haidingergasse 1, 1030 Vienna November 15, 2017 Interim Report Q1-3 2017 Website: www.post.at/ir E-mail: investor@post.at Telephone: +43 57767-30401 Fax: +43 57767-30409 Disclaimer This p