Slide 1: Investor Presentation Q1-3 2018
AUSTRIAN POST INVESTOR PRESENTATION Q1-3 2018 Walter Oblin/CFO Vienna, November 15, 2018
Slide 2: Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results Q1-3 2018 4. Outlook 2018 and 2019 INVESTOR PRESENTATION | Investor Relations | Vienna, November 15, 2018 2
Slide 3: Highlights Q1-3 2018
HIGHLIGHTS Q1-3 2018 Market: Continuation of basic trends in Austria: addressed letter mail volumes principally in decline, positive special effects in the third-quarter, double-digit parcel growth against tough competition Revenue: Slight rise of 0.8% in Q1-3 2018; revenue decline in the Mail & Bra
Slide 4: Slight Revenue Improvement Due to Parcel Growth
SLIGHT REVENUE IMPROVEMENT DUE TO PARCEL GROWTH REVENUE DEVELOPMENT EUR m +0.8% GROUP: +0.8% (Q3: +2.3%) 1,404.7 1,416.4 • Slight revenue increase due to moderate letter mail decline and strong parcel growth 352.4 +11.5% 392.9 PARCEL & LOGISTICS: +11.5% (Q3: +10.3%) • Basic upward revenue trend of 1
Slide 5: Improved Operating Earnings (EBIT)
IMPROVED OPERATING EARNINGS (EBIT) EBIT DEVELOPMENT EUR m MAIL & BRANCH NETWORK: +1.5% • EBIT decline of EUR 1.0m in Q1-3 2018 139.9 141.9 (+EUR 5.3m in Q3) • Already in Q1 2018: provisions for redimensioning of -1.0 -2.3 +5.3 financial services (-EUR 21.6m) largely compensated Q3 Q3 37.7 36.9 by on
Slide 6: 2. Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results Q1-3 2018 4. Outlook 2018 and 2019 INVESTOR PRESENTATION | Investor Relations | Vienna, November 15, 2018 6
Slide 7: Clear Strategic Priorities
CLEAR STRATEGIC PRIORITIES DEFENDING MARKET LEADERSHIP IN PROFITABLE GROWTH IN SELECTED 1. THE CORE BUSINESS 2. 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: Letter Mail and Direct Mail in Austria
1 LETTER MAIL AND DIRECT MAIL IN AUSTRIA LETTER MAIL CURRENT TRENDS ● New product structure as of July 1, 2018 has been well received • 50% of letter mail volume currently sent ECO by customers (2-3 days delivery time) • 50% sent as PRIO products (next day delivery) ● Basic volume trend principally
Slide 9: Parcel & Logistics Business in Austria
1 PARCEL & LOGISTICS BUSINESS IN AUSTRIA AUSTRIAN POST PARCEL VOLUMES CURRENT TRENDS (millions of parcels) ~150 Ø +8% ● Approx. 10% volume rise in Austria in Q1-3 2018 97 74 80 81 70 ● Additional volumes lead to higher logistics costs in Volume growth forecast: case of capacity bottlenecks Ø +8% to
Slide 10: Branch Network: Stability in the Core Business, Redimensioning of Financial Services
BRANCH NETWORK: STABILITY IN THE CORE 2 BUSINESS, REDIMENSIONING OF FINANCIAL SERVICES THREE PRODUCT GROUPS CONTINUE TO BE A FIXED 1,779 POSTAL SERVICE POINTS PART OF THE SERVICE OFFERING • 38m CUSTOMER CONTACTS p.a. POSTAL PRODUCTS in the branch offices • 19m CUSTOMER CONTACTS p.a. at postal partne
Slide 11: Growth in Selected Markets
2 GROWTH IN SELECTED MARKETS GROWTH FOCUS ON PARCEL & LOGISTICS GERMANY Austrian Post International: • Growth in the international letter mail business, revenue up by 8.0% in Q1-3 2018 CEE/SEE Focus on profitable parcel growth AEP (50% stake, consolidated at equity): • Ongoing positive organic volum
Slide 12: Capacity and Quality Drive
3 CAPACITY AND QUALITY DRIVE EXPANSION OF PARCEL LOGISTICS IN AUSTRIA Q1-3 2018: • EUR 56.9m in maintenance CAPEX and growth CAPEX of EUR 29.3m • Ground-breaking ceremony for the Hagenbrunn Parcel Centre in Lower Austria on July 10, 2018, completion planned by summer 2019 CAPEX (EUR m)1 105 Growth C
Slide 13: Staff Structure in Austria
3 STAFF STRUCTURE IN AUSTRIA FULL-TIME EQUIVALENTS IN THE AUSTRIAN CORE BUSINESS (average for the period) 21,926 Change Q1-3 2017 / 21,003 490 20,217 20,064 Q1-3 2018: 19,417 +203 FTE 1,891 18,790 -728 Civil servants 2,490 18,233 3,350 17,692 17,454 17,657 -297 Employees old CWA 3,858 9,397 4,374 +1
Slide 14: Further Expansion of Self-Service Customer Solutions
FURTHER EXPANSION OF SELF-SERVICE 4 CUSTOMER SOLUTIONS 31,210 PICK-UP BOXES 329 PICK-UP STATIONS 402 DROP-OFF BOXES Q1-3 2018: >1.7m items Q1-3 2018: >2.2m items Q1-3 2018: >3.6m items Number of solutions Items/ month Jun.12 Sep.18 Nov.13 Sep.18 Nov.13 Sep.18 MEDIUM-TERM GOAL TO DOUBLE THE NUMBER OF
Slide 15: New Offerings for Enhanced Customer Service
4 NEW OFFERINGS FOR ENHANCED CUSTOMER SERVICE NEW SERVICE: “ALLESPOST” (ALL PARCELS BY POST) • Customers would like to actively select their delivery company, not possible with many mail order companies → Solution: “AllesPost” • By designating the “AllesPost” address, all items are delivered by Aust
Slide 16: 3. Group Results Q1-3 2018
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS Q1-3 2018 4. Outlook 2018 and 2019 INVESTOR PRESENTATION | Investor Relations | Vienna, November 15, 2018 16
Slide 17: Q1-3 2018 Financial Indicators at a Glance
Q1-3 2018 FINANCIAL INDICATORS AT A GLANCE Q1-3 2017 Q1-3 2018 Revenue (EUR m) 1,404.7 1,416.4 Revenue slightly above the previous year (+0.8%) EBITDA margin 14.1% 14.6% Improved EBITDA margin of 14.6% EBIT margin 10.0% 10.0% Stable profitability Earnings/share (EUR) 1.57 1.56 Earnings per share at
Slide 18: Key Income Statement Indicators
KEY INCOME STATEMENT INDICATORS Q1-3 Q1-3 Q3 Q3 EUR m 20171 2018 % ∆ 20171 2018 Revenue 1,404.7 1,416.4 0.8% 11.7 451.0 461.1 +EUR 20.1m one-off income already in Q1 Other operating income 43.2 73.9 71.1% 30.7 15.5 22.9 due to dissolution of Raw materials, consumables and services -296.5 -313.3 -5.7
Slide 19: Mail & Branch Network Division: Q1-3 2018 Revenue Development
MAIL & BRANCH NETWORK DIVISION: Q1-3 2018 REVENUE DEVELOPMENT LETTER MAIL & MAIL SOLUTIONS (EUR m) DIRECT MAIL/MEDIA POST (EUR m) • Good Q3 2018 in the core business • Operating revenue down by about 2-3%, significant − Volume development supported by one-time mailings election effects in 2017 − New
Slide 20: Mail & Branch Network Division: Income Statement
MAIL & BRANCH NETWORK DIVISION: INCOME STATEMENT Q1-3 Q1-3 EUR m 20171 2018 % ∆ Q3 20171 Q3 2018 Revenue 1,055.3 1,027.3 -2.6% -28.0 333.9 332.3 Good development due to e-commerce and new • Letter Mail & Mail-Solutions 574.1 585.2 1.9% 11.2 178.1 194.2 product structure • Direct Mail 298.3 277.9 -6.
Slide 21: Parcel & Logistics Division: Q1-3 2018 Revenue Development
PARCEL & LOGISTICS DIVISION: Q1-3 2018 REVENUE DEVELOPMENT REVENUE (EUR m) +11.5% 392.9 PARCEL & LOGISTICS DIVISION: +11.5% (Q3: +10.3%) 352.4 78.6 • Revenue growth in Q1-3 2018 excl. segment change of +12.0% Weber Escal +9.1% (Q3: +8.0%) CEE/SEE 70.2 CEE/SEE: +12.0% (Q3: +9.4%) • Stable development
Slide 22: Parcel & Logistics Division: Income Statement
PARCEL & LOGISTICS DIVISION: INCOME STATEMENT Q1-3 Q1-3 EUR m 20171 2018 % ∆ Q3 20171 Q3 2018 Revenue 352.4 392.9 11.5% 40.4 118.1 130.2 +9.1% revenue increase excl. segment change of • Premium 171.3 188.4 10.0% 17.1 59.1 65.1 Weber Escal, Croatia • Standard 155.5 163.5 5.1% 7.9 50.6 51.7 • Other Pa
Slide 23: Solid Balance Sheet Structure
SOLID BALANCE SHEET STRUCTURE BALANCE SHEET AS AT SEPTEMBER 30, 2018 EUR m 1,650.3 1,650.3 Financial liabilities of Other financial liabilities 4.6 only EUR 5m Cash and cash equivalents/ 355.8 Securities1 Liquid financial Liabilities/ 422.0 Structure of provisions resources of Other EUR 356m EUR m F
Slide 24: Special Cash Flow Effects in Q1-3 2018
SPECIAL CASH FLOW EFFECTS IN Q1-3 2018 CASH FLOW DEVELOPMENT Free cash flow impacted by special effects: EUR m • BAWAG special payment of EUR 107.0m less services rendered in the reporting period of EUR 29.7m • Increased maintenance and growth CAPEX (EUR 86.2m vs. EUR 49.5m) 251.0 252.5 • Acquisitio
Slide 25: 4. Outlook 2018 and 2019
1. Highlights and Overview 2. Strategy Implementation 3. Group Results Q1-3 2018 4. OUTLOOK 2018 AND 2019 INVESTOR PRESENTATION | Investor Relations | Vienna, November 15, 2018 25
Slide 26: Outlook 2018 and 2019
OUTLOOK 2018 AND 2019 • Approx. 5% volume decline p.a. of addressed letter mail Market • Direct mail business dependent on dynamics of the particular customer segment environment • Basic rise in parcel volumes, tough competition and price pressure, own delivery of a large-volume customer in the Vien
Slide 27: Contact
CONTACT Austrian Post Financial calendar 2019 Investor Relations March 14, 2019 Annual Results 2018 Rochusplatz 1, 1030 Vienna April 11, 2019 Annual General Meeting Website: www.post.at/ir April 23 /April 25, 2019 Ex-Day/Dividend Payment Day E-mail: investor@post.at May 16, 2019 Interim Report Q1 20