Slide 1: Austrian Post Investor Presentation Q1 2022
AUSTRIAN POST Investor Presentation Q1 2022 Walter Oblin, CFO Vienna, 13 May 2022 INVESTOR PRESENTATION Investor Relations Vienna, 13 May 2022
Slide 2: Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results Q1 2022 4. Outlook 2022 INVESTOR PRESENTATION Investor Relations Vienna, 13 May 2022 2
Slide 3: Austrian Post at a Glance
AUSTRIAN POST AT A GLANCE Mail Parcel & Logistics Retail & Bank Revenue mix Q1 2022 – Letter Mail – Parcels and Express – Branch and Financial – Direct Mail – Fulfillment and Services Branch & Financial – Newspapers and Cash Transport – Customer Services Services Magazines – E-Commerce Services Parc
Slide 4: Latest Trends in 2022
LATEST TRENDS IN 2022 General mail and parcel trends Additional international trends − Decrease of positive special effects from 2021 − Pressure on the Turkish lira − Record parcel volumes during lockdowns − Higher raw materials’ prices, particularly for energy − Additional pandemic-related business
Slide 5: Q1 2022 Overview
Q1 2022 OVERVIEW Revenue EBIT EUR 601.4m (-7.1%/-2.4%1) EUR 39.6m (-33.7%) Mail -3.9% EUR 298.9m Q1 2022 Q1 2021 Parcel & Logistics -12.5% EUR 283.1m EBIT margin 6.6% 9.2% excl. Parcel Turkey -3.4% EUR 232.7m Mail 13.7% 14.6% Parcel Turkey -39.1% EUR 50.4m Parcel & Logistics 6.2% 11.1% Retail & Bank
Slide 6: Group Revenue in Q1 2022 Below the High Prior-Year Level
GROUP REVENUE IN Q1 2022 BELOW THE HIGH PRIOR-YEAR LEVEL Revenue development Group: -7.1% to EUR 601.4m EUR m -7.1% Decline in Mail and Parcel, Parcel Turkey revenue down by approx. -40% (-2.4% excl. Parcel Turkey) in Euro YOY 647.0 Mail: -3.9% to EUR 298.9m 601.4 – Decrease in letter mail to EUR 18
Slide 7: Q1 2022 Earnings Strongly Impacted by the Parcel Business
Q1 2022 EARNINGS STRONGLY IMPACTED BY THE PARCEL BUSINESS EBIT development EUR m Group: -33.7% to EUR 39.6m Decline in parcel business heavily affected by Turkish lira FX rate, -33.7% positive development in the Retail & Bank Division Mail: -9.7% to EUR 41.1m 59.8 – Volume drop in letter mail and di
Slide 8: Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results Q1 2022 4. Outlook 2022 INVESTOR PRESENTATION Investor Relations Vienna, 13 May 2022 8
Slide 9: INVESTOR PRESENTATION Investor Relations Vienna, 13 May 2022
INVESTOR PRESENTATION Investor Relations Vienna, 13 May 2022 9
Slide 10: Letter Mail
1 LETTER MAIL Austrian Letter Mail volumes Austrian and International Volumes (millions of items) – Ongoing decline of letter mail volumes – Drop of 4% in Q1 2022 Ø -4.3% p.a. Ø -5.6% p.a. 939 931 910 833 1% 764 728 723 690 643 615 -2% -3% -5% -4% EUR -6% -6%-6% 709m Revenue -14% 1 1 2012 2013 2014
Slide 11: Priority and Non-Priority Postal Rates in Europe
1 PRIORITY AND NON-PRIORITY POSTAL RATES IN EUROPE Rate adustments effective 1 July 2022 Spain 0.91 4.98 Denmark 1.37 3.32 Italy 1.25 3.18 Greece 1.23 2.60 Estonia 1.25 2.09 Belgium 1.17 1.87 Latvia 1.83 Poland 1.45 1.81 Romania 1.13 1.69 Finland 1.67 Czech Republic 1.19 1.64 France 1.21 1.49 Norway
Slide 12: Direct Mail/Media Post in Austria
1 DIRECT MAIL/MEDIA POST IN AUSTRIA Direct Mail/Media Post volumes Volumes – Recovery, above all for unaddressed items, (millions of items) after a weak prior-year quarter – Increase of 10% in Q1 2022 Ø -1.8% p.a. Ø -6.2% p.a. 5,108 4,883 +14% 4,737 4,727 4,765 4,599 4,816 4,559 +10% 4,417 3,916 3,8
Slide 13: Parcel Business in Austria
1 PARCEL BUSINESS IN AUSTRIA Parcel volumes Volumes – Consolidation effect after extraordinarily (millions of items) high volumes in the prior-year quarter (driven by Q1 2021 lockdowns) Ø +9.8% p.a. – Drop of 9% in Q1 2022 Ø +20.4% p.a. 184 166 +44% +34% +33% 127 +28% 108 97 EUR +17% 81 716m 74 80 R
Slide 14: Investments in the Logistics Infrastructure
1 INVESTMENTS IN THE LOGISTICS INFRASTRUCTURE Paketlogistikzentren Brieflogistikzentren CAPEX (EUR m) 161 153 139 143 Q1 2022 CAPEX ~80 - Maintenance CAPEX of EUR 11.8m Growth CAPEX - Growth CAPEX of EUR 11.9m Continuation of investment programme - Transition to CO₂-free delivery - Sorting capacity:
Slide 15: Expansion of Austrian Logistics Infrastructure
1 EXPANSION OF AUSTRIAN LOGISTICS INFRASTRUCTURE 2018 2019 2020 2021 2022 2023 Sorting capacities in Austria LC Vienna (parcels/h) 142,000 LC Upper Austria LC Styria LC Lower Austria 118,000 LC Tyrol 96,500 LC Vorarlberg 90,000 LC Salzburg Thalgau 85,000 LC Styria 75,000 LC Lower Austria 67,000 LC L
Slide 16: Staff Structure in Austria
1 STAFF STRUCTURE IN AUSTRIA Employees in the Austrian core business (without bank99) FTEs (average for the period) 21,926 21,003 490 20,218 20,064 -126 19,417 1,891 18,790 18,233 2,490 17,692 17,463 17,644 17,444 17,698 17,823 17,697 3,350 3,858 9,397 4,374 4,775 7,883 5,127 7,247 5,881 7,095 6,788
Slide 17: Profitable Growth in Near Markets
2 PROFITABLE GROWTH IN NEAR MARKETS Business proximity Geographical proximity Proximity in line with the business model Focus on the parcel business in Southeast and Expansion of Austrian Post‘s range of services Germany Eastern Europe and Turkey EUR - Digital and hybrid communications ~470m - Busin
Slide 18: International Parcel Markets
2 INTERNATIONAL PARCEL MARKETS Parcel volumes in Turkey & CEE/SEE (millions of items) 269 250 190 185 172 149 217 217 139 130 206 116 Turkey: Major growth opportunities 156 150 in e-commerce; pressure on the 139 112 120 Turkish lira in H2 2021 and high 106 inflation 95 16 18 19 7 44 52 CEE/SEE: Ongo
Slide 19: Parcels Turkey – Aras Kargo
2 PARCELS TURKEY – ARAS KARGO Financial indicators – 19% parcel volume decline in Q1 2022 – Q1 2022 revenue: +7% to TRY 790m (≙ EUR 50m) – Strong and debt-free balance sheet Parcel volumes1 Revenue FX rate Turkish lira (millions of items) (TRY m) (1 EUR in TRY) Ø +21.2% 2,993 217 206 2,299 15.6 156
Slide 20: bank99: New Starting Point with More Critical Mass
3 BANK99: NEW STARTING POINT WITH MORE CRITICAL MASS Next phase following acquisition of the ING retail business in Austria bank99 Complementary strengths Retail and digital bank Next Steps in the product structure Customers 245,000 Technical integration Current accounts Employees 316 Balance sheet
Slide 21: Self-Service Zones: Slight Decline Due to Lower Parcel Volumes
3 SELF-SERVICE ZONES: SLIGHT DECLINE DUE TO LOWER PARCEL VOLUMES 60,674 pick-up boxes 98,778 compartments in pick-up 512 shipping stations Q1 2022: >1.1m items stations Q1 2022: >2.3m items Q1 2022: >1.4m items June 2012 March 2022 November 2013 March 2022 January 2012 March 2022 Q1 2022 vs. Q1 2021
Slide 22: INVESTOR PRESENTATION Investor Relations Vienna, 13 May 2022
INVESTOR PRESENTATION Investor Relations Vienna, 13 May 2022 22
Slide 23: 2030 Sustainability Master Plan – Key Topics
2030 SUSTAINABILITY MASTER PLAN – KEY TOPICS Economy & Customers •1 Sustainable appearance & services for private customers Expansion of bank99: Security of country-wide banking 2 Sustainable mail & parcel products supply for 245,000 customers •3 Sustainable procurement Sustainability report: •4 Sus
Slide 24: Group Results Q1 2022
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS Q1 2022 4. Outlook 2022 INVESTOR PRESENTATION Investor Relations Vienna, 13 May 2022 24
Slide 25: Financial Indicators at a Glance
FINANCIAL INDICATORS AT A GLANCE Q1 2021 Q1 2022 1 Revenue (EUR m) 647.0 601.4 Decline in Mail and Parcel, increase in Retail & Bank EBITDA margin (%) 15.3 13.5 EBITDA margin below good prior-year quarter EBIT margin strongly impacted by the Turkish EBIT margin (%) 9.2 6.6 business (FX) Earnings per
Slide 26: Key Income Statement Indicators
KEY INCOME STATEMENT INDICATORS EUR m Q1 20211 Q1 2022 % ∆ Revenue 647.0 601.4 -7.1% -45.7 Positive revenue development in the Retail & Bank Division, Other operating income 22.2 28.4 27.8% 6.2 decrease in Mail and Parcel & Logistics (revenue decline excl. Raw materials, cons. and services used -185
Slide 27: Mail Division: Q1 2022 Revenue Development
MAIL DIVISION: Q1 2022 REVENUE DEVELOPMENT Letter Mail & Business Solutions (EUR m) Direct Mail/Media Post (EUR m) – Volume decline continues at consistent level: -4% – Volume increase of 10% – Decrease of positive effects from special – Recovery following a weak Q1 2021, mainly for COVID-19 mailing
Slide 28: Mail Division: Key Income Statement Indicators
MAIL DIVISION: KEY INCOME STATEMENT INDICATORS EUR m Q1 2021 Q1 2022 % ∆ Decrease in traditional letter mail (especially international Revenue 311.0 298.9 -3.9% -12.1 e-commerce items). Decrease of positive effects from • Letter Mail & Business Solutions 205.6 187.6 -8.7% -17.9 special COVID-19 mail
Slide 29: Parcel & Logistics Division: Q1 2022 Revenue Development
PARCEL & LOGISTICS DIVISION: Q1 2022 REVENUE DEVELOPMENT Revenue development Parcel & Logistics Division: -12.5% EUR m Decline in Austria and Turkey, growth in Southeast and Eastern -12.5% Europe and in Logistics Solutions (e.g. special logistics services) (-3.4% excl. Parcel Turkey) Austria: -6.8%
Slide 30: Parcel & Logistics Division: Key Income Statement Indicators
PARCEL & LOGISTICS DIVISION: KEY INCOME STATEMENT INDICATORS EUR m Q1 20211 Q1 2022 % ∆ Revenue 323.7 283.1 -12.5% -40.5 Volume decline of 9% after • Parcel Austria 183.3 170.9 -6.8% -12.4 strong prior quarters • Parcel Turkey 82.8 50.4 -39.1% -32.4 Revenue growth of 7% in • Parcel CEE/SEE 40.9 42.4
Slide 31: Retail & Bank Division: Q1 2022 Revenue Development
RETAIL & BANK DIVISION: Q1 2022 REVENUE DEVELOPMENT Revenue development Retail & Bank Division: +49.3% EUR m Acquisition of the private customer business of ING in +49.3% Austria at the end of 2021 led to the Q1 2022 revenue increase 26.4 Income from Financial Services: EUR +10.2m – Positive custome
Slide 32: Retail & Bank Division: Key Income Statement Indicators
RETAIL & BANK DIVISION: KEY INCOME STATEMENT INDICATORS EUR m Q1 20211 Q1 2022 % ∆ Revenue 17.7 26.4 49.3% 8.7 Positive development driven by customer ramp-up and • Branch Services 10.5 9.0 -14.3% -1.5 ING‘s retail business in Austria • Income from Financial Services 7.1 17.4 >100% 10.2 Revenue intr
Slide 33: Solid Balance Sheet and Financing Structure
SOLID BALANCE SHEET AND FINANCING STRUCTURE EUR m ASSETS 4,792.6 4,885.1 EQUITY & 4,792.6 4,885.1 Liquid financial resources 108.9 LIABILITIES Includes lease liabilities of Cash, money 117.2 90.4 of EUR 109m 332.0 market/securities 90.1 Other financial 404.4 EUR 330m (IFRS 16) investments liabilitie
Slide 34: Operating Free Cash Flow at a Solid Level
OPERATING FREE CASH FLOW AT A SOLID LEVEL EUR m Operating free cash flow Free cash flow before money market and of EUR 72m securities investments of EUR 63m 83.6 +0.3 72.1 +2.6 62.9 -11.8 -11.9 Cash flow from Maintenance Other Operating Growth Acquisitions/ Free cash flow before operating activities
Slide 35: Outlook 2022
1. Highlights and Overview 2. Strategy Implementation 3. Group Results Q1 2022 4. OUTLOOK 2022 INVESTOR PRESENTATION Investor Relations Vienna, 13 May 2022 35
Slide 36: Outlook 2022
OUTLOOK 2022 Market environment – Economic environment in 2022 characterised by inflation and restrained consumer behaviour – Entrenchment of inflation due to shortages of raw materials and retail goods as well as high staff costs – Fewer positive special effects for parcel and logistics services in
Slide 37: Contact
CONTACT Austrian Post Financial calendar 2022 Investor Relations 11 August 2022 Half-Year Financial Report 2022 Rochusplatz 1, 1030 Vienna 11 November 2022 Interim Report Q1-3 2022 Website: post.at/ir E-mail: investor@post.at Telephone: +43 57767-30400 Disclaimer This presentation contains forward-l