Slide 1: Austrian Post Investor Presentation Q1-3 2023
AUSTRIAN POST Investor Presentation Q1-3 2023 Walter Oblin, CFO Vienna, 14 November 2023 INVESTOR PRESENTATION Investor Relations Vienna, 14 November 2023
Slide 2: Austrian Post at a Glance
AUSTRIAN POST AT A GLANCE Revenue mix Q1-3 2023 Branch & Financial Services Parcel International 6% Letter Mail & 27% Business 20% EUR Solutions Mail Parcel & Logistics Retail & Bank – Letter Mail – Parcels & Express – Branch & Financial 1,969m – Direct Mail – Fulfilment & Services Revenue – Newspap
Slide 3: Economic Environment in 2023 Impacted by Purchasing Power, Inflation and Currency Effects
ECONOMIC ENVIRONMENT IN 2023 IMPACTED BY PURCHASING POWER, INFLATION AND CURRENCY EFFECTS High level of inflation, Türkiye: high inflation Price-adjusted decline in trade little growth momentum in Austria with volatile currency E-commerce expenditure in Austria -4.5% Austrian Consumer Price Index Tu
Slide 4: Positive Development in Parcels and Financial Services, Decline in Mail Products
POSITIVE DEVELOPMENT IN PARCELS AND FINANCIAL SERVICES, DECLINE IN MAIL PRODUCTS Q3 Q1-3 – Higher revenue despite challenging market Revenue +8.5% Group environment EBITDA +9.5% – Favourable results due to cost and price discipline EBIT +4.4% – Ongoing decline of letter mail volumes – Revenue develo
Slide 5: Year-to-Date: Strong Group Revenue Due to Business in Türkiye
YEAR-TO-DATE: STRONG GROUP REVENUE DUE TO BUSINESS IN TÜRKIYE Quarterly revenue comparison EUR m Q1 Q2 Q3 +10.5% +1.6% +13.3% 664.7 684.5 Türkiye 601.4 610.4 620.2 604.1 83.6 +65.9% 126.7 +80.1% Growth by quarter impacted by 50.4 57.9 49.5 -14.5% 70.4 inflation and currency effects Austria and CEE/S
Slide 6: Group Revenue Up by 8.5% in Q1-3 2023
GROUP REVENUE UP BY 8.5% IN Q1-3 2023 Revenue development EUR m +8.5% (+4.4% excl. Parcel Türkiye) 1,969.3 Retail & Bank 1,815.9 +39.3% 118.6 Q3 – Favourable market environment supports growth in financial services 85.2 +35.6% – Increase of Income from Financial Services to EUR 89.5m (+58.5%) +16.6%
Slide 7: Group Earnings Improved by 4.4% in Q1-3 2023
GROUP EARNINGS IMPROVED BY 4.4% IN Q1-3 2023 EBIT development EUR m Mail +4.4% – Declining volumes largely offset by price and cost discipline – Q3 EBIT from EUR 27.8m to EUR 24.5m 130.8 125.3 Q1-3 EBIT from EUR 110.7m to EUR 102.1m -7.3 Q3 Parcel & Logistics Q3 -8.6 +2.0 +19.3 35.6 34.3 – Strong re
Slide 8: Strategy of Austrian Post: Ahead to the Future
STRATEGY OF AUSTRIAN POST: AHEAD TO THE FUTURE INVESTOR PRESENTATION Investor Relations Vienna, 14 November 2023 8
Slide 9: Letter Mail
1 LETTER MAIL Q1-3 2023 Letter Mail volumes in Austria (items adjusted for one-off and special effects) Austrian and International Volumes – Adjusted Austrian letter mail volumes down (millions of items) by 5% in Q1-3 – Positive special effects in 2022 (Energy bonus, mailings by utility companies, c
Slide 10: Priority and Non-Priority Rates in Europe
1 PRIORITY AND NON-PRIORITY RATES IN EUROPE Denmark 1.38 3.67 Italy 1.46 3.40 Estonia 1.81 3.21 Greece 1.67 3.06 Latvia 2.46 Belgium 1.40 2.21 Romania 1.29 2.18 Lithuania 2.00 2.17 Czech Republic 1.72 2.16 Finland 2.11 ECO LETTER NOW Poland 1.68 2.07 ACCESSIBLE FOR Croatia 1.02 1.76 PRIVATE CUSTOMER
Slide 11: Direct Mail/Media Post in Austria
1 DIRECT MAIL/MEDIA POST IN AUSTRIA Q1-3 2023 Direct Mail/Media Post volumes (daily items) – Subdued advertising environment results in a 10% volume decline in Q1-3 2023 Volumes – Structural decrease in sub-segments (millions of items) (e.g., mail order business) – Consolidation effects in stationar
Slide 12: Parcel Business in Austria
1 PARCEL BUSINESS IN AUSTRIA Q1-3 2023 parcel volumes (daily items) – Parcel growth in Austria up by 11% vs. Volumes Q1-3 2022 (millions of items) – Growth reflects customer confidence in the quality leadership of Austrian Post – Increase above average in volumes from Asia Ø +10.4% p.a. +14% +12% Q1
Slide 13: Sustainable Infrastructure Investments
1 SUSTAINABLE INFRASTRUCTURE INVESTMENTS CAPEX (EUR m) 160-180 CAPEX Q1-3 2023 161 - Maintenance CAPEX of EUR 60.8m 152 143 Thereof: About EUR 20m investments in Green Transformation (e-mobility, photovoltaic facilities) Q1-3 - Growth CAPEX of EUR 37.1m EUR 97.9m CAPEX forecast for 2023 Reduced CAPE
Slide 14: Expansion of Austrian Logistics Infrastructure
1 EXPANSION OF AUSTRIAN LOGISTICS INFRASTRUCTURE 2018 2019 2020 2021 2022 2023 Sorting capacity (parcels/h, cumulative) LZ Vienna LC Styria LC Upper Austria 138,000 129,000 LC Lower Austria LZ Vorarlberg LZ Tyrol 104,000 Full operation as of October 2023 LZ Salzburg 91,000 LC Styria 76,000 LC Lower
Slide 15: Staff Structure in Austria
1 STAFF STRUCTURE IN AUSTRIA Employees in the Austrian core business Full-time equivalents (average for the period) 21,926 490 17,602 17,240 -362 9,397 -351 Civil Servants -212 Employees Old CLA +201 Employees New CLA 9,934 10,135 New Collective Labour 12,039 3,417 3,205 Agreement Old Collective Lab
Slide 16: Profitable Growth in Near Markets
2 PROFITABLE GROWTH IN NEAR MARKETS Focus on Parcel & Logistics CEE/SEE TÜRKIYE Millions of parcels Millions of parcels 198 186 182 127 127 44 52 54 34 35 Revenue 2022 Revenue 2022 EUR 172.0m EUR 251.7m Locations with own logistics network Further locations INVESTOR PRESENTATION Investor Relations V
Slide 17: Strong Operating Development of Business in Türkiye
2 STRONG OPERATING DEVELOPMENT OF BUSINESS IN TÜRKIYE Financial indicators Parcel volumes Revenue (millions of items) (TRY m) (EUR m) – Positive volumes (+11%) and TRY revenue development (+133%) – EBIT margin above Group average – Cash and cash equivalents on the +11% +133% +45% balance sheet appro
Slide 18: Positive Momentum Due to Improved Interest-Rate Environment
3 POSITIVE MOMENTUM DUE TO IMPROVED INTEREST-RATE ENVIRONMENT 31.12.2022 30.9.2023 bank99 balance sheet total Top issue: as at 30.9.2023 Technical integration Retail and digital bank EUR bn Acc. Austrian GAAP 3.2 3.2 Core Banking System migration (H2 2023 to H1 2024) Customers − Exit ING OrangeLion
Slide 19: Self-Service Solutions Are Very Popular with Post Customers
3 SELF-SERVICE SOLUTIONS ARE VERY POPULAR WITH POST CUSTOMERS Volumes 24/7 (millions of items) First Mile (send, return) Last Mile (receive) 23.4 21.6 654 17.6 Drop-off devices Q1-3 13.8 +17.6% 11.3 71,584 Pick-up boxes 8.3 5.9 3.4 111,160 1.3 Lockers at pick-up stations 2014 2015 2016 2017 2018 201
Slide 20: ESG Indicators Q1-3 2023
ESG INDICATORS Q1-3 2023 Q1-3 2023 Change Reduction in Austria Environmental indicators1 through energy efficiency and CO2e emissions (Scope 1–3, Post AG) t CO2e 62,900 -2.3% e-mobility CO2e emissions (Scope 1–3, Group) t CO2e 170,400 +4.3% International increase due to parcel growth CO2e emissions
Slide 21: Expansion of E-Vehicle Fleet and PV Systems in Progress
EXPANSION OF E-VEHICLE FLEET AND PV SYSTEMS IN PROGRESS Ramp-up for e-vehicle fleet Photovoltaic facilities (Number of vehicles) (output in cumulative MWp) 6.183 >20.0 >4,600 ~15.0 >3,800 3,039 Q1-3 ~8.0 3,500 Q1-3 4.3 Q1-3 2,865 6.9 Q1-3 3.5 2011 22 23e 24e 2030e 2014 22 23e 24e 2030e INVESTOR PRES
Slide 22: Financial Indicators at a Glance
FINANCIAL INDICATORS AT A GLANCE Q1-3 2022 Q1-3 2023 Revenue (EUR m) 1,815.9 1,969.3 Very good revenue development (+8.5%) EBITDA margin (%) 14.2 14.3 EBITDA margin of 14.3% slightly higher YOY EBIT margin (%) 6.9 6.6 EBIT margin of 6.6% Earnings/share (EUR) 1.25 1.30 Earnings per share up from EUR
Slide 23: Key Income Statement Indicators
KEY INCOME STATEMENT INDICATORS EUR m Q1–3 2022 Q1–3 2023 % ∆ Q3 2022 Q3 2023 Mail -2.3%, Parcel & Logistics +16.6%, Revenue 1,815.9 1,969.3 8.5% 153.5 604.1 684.5 Retail & Bank +39.3% Other operating income 78.9 77.0 -2.5% -2.0 19.7 39.0 Positive effects in 2023 and Raw materials, consumables and 2
Slide 24: Mail Division: Revenue Development in Q1-3 2023
MAIL DIVISION: REVENUE DEVELOPMENT IN Q1-3 2023 Revenue development EUR m -2.3% 886.9 866.7 Direct Mail/Media Post – Revenue decline of 4.1% in Q1-3 reflects overall economic situation 329.4 Q3 – Subdued advertising environment in sub-segments (furniture and mail -4.1% 316.1 -8.1% order sectors) – C
Slide 25: Mail Division: Key Income Statement Indicators
MAIL DIVISION: KEY INCOME STATEMENT INDICATORS EUR m Q1–3 2022 Q1–3 2023 % ∆ Q3 2022 Q3 2023 Revenue 886.9 866.7 -2.3% -20.2 287.4 268.6 Volume decrease; positive postal rate effects • Letter Mail & Business Solutions 557.5 550.6 -1.2% -6.8 182.2 171.9 • Direct Mail 239.1 224.0 -6.3% -15.1 77.4 68.7
Slide 26: Parcel & Logistics Division: Q1-3 2023 Revenue Development
PARCEL & LOGISTICS DIVISION: Q1-3 2023 REVENUE DEVELOPMENT Revenue development EUR m +16.6% (+9.1% excl. Parcel Türkiye) 1.009,1 Logistics Solutions – Revenue drop of 10.7% 43.8 – Discontinuation of special pandemic-related logistics services 865.3 Q3 -10.7% 140.0 -3.2% Parcel CEE/SEE 49.0 – Revenue
Slide 27: Parcel & Logistics Division: Key Income Statement Indicators
PARCEL & LOGISTICS DIVISION: KEY INCOME STATEMENT INDICATORS EUR m Q1–3 2022 Q1–3 2023 % ∆ Q3 2022 Q3 2023 Revenue 865.3 1,009.1 16.6% 143.9 293.2 380.7 Very positive volume and revenue development • Parcel Austria 512.7 565.6 10.3% 52.9 169.0 191.7 • Parcel Türkiye 178.6 259.8 45.5% 81.2 70.4 126.7
Slide 28: Retail & Bank Division: Revenue Development in Q1-3 2023
RETAIL & BANK DIVISION: REVENUE DEVELOPMENT IN Q1-3 2023 Revenue development EUR m +39.3% 118.6 Branch Services 29.1 Q3 – Revenue up by 1.4% 85.2 -7.5% – Slight increase in retail goods revenue (mainly inflation-related price adjustments) +1.4% 28.7 Income from Financial Services 89.5 Q3 – Revenue i
Slide 29: Retail & Bank Division: Key Income Statement Indicators
RETAIL & BANK DIVISION: KEY INCOME STATEMENT INDICATORS EUR m Q1–3 2022 Q1–3 2023 % ∆ Q3 2022 Q3 2023 Revenue 85.2 118.6 39.3% 33.4 31.0 42.1 High net interest income and increase in housing loans • Income from Financial Services 56.4 89.5 58.5% 33.0 21.0 32.9 positively impact revenue • Branch Serv
Slide 30: Solid Balance Sheet and Financing Structure
SOLID BALANCE SHEET AND FINANCING STRUCTURE EUR m 5,463.8 5,463.8 30.9.2023 Cash, money market/securities investments 95.9 128.1 Financial assets, investment property 628.9 Other financial liabilities Loans of EUR 225m and lease liabilities of EUR 401m (IFRS 16) 538.5 Liabilities/Other Financial ass
Slide 31: Operating Free Cash Flow at a Solid Level
OPERATING FREE CASH FLOW AT A SOLID LEVEL EUR m Operating free cash flow and free cash flow above previous year's level 212.0 +26.0 177.2 -60.8 125.8 -37.1 Thereof 35% -14.3 Green Transformation (E-Mobility) Incl. proceeds from the sale of real estate EUR 23.3m Cash flow from operating Maintenance O
Slide 32: Outlook
OUTLOOK Market environment in 2023 – Inflation, consumer behaviour and development of retail trade volumes remain the key factors impacting the market – Subdued economic environment and consumer behaviour Revenue in 2023 – Outlook confirmed, growth in Group revenue at least in the mid-single-digit r
Slide 33: Contact
CONTACT Austrian Post Financial calendar 2024 Investor Relations 13 March 2024 Annual Report 2023 Rochusplatz 1, 1030 Vienna 18 April 2024 Annual General Meeting Website: post.at/investor 26 April/02 May 2024 Ex-day/Dividend payment day E-mail: investor@post.at 08 May 2024 Interim Report Q1 2024 Pho