Slide 1: Austrian Post Investor Presentation FY 2021
AUSTRIAN POST Investor Presentation FY 2021 Walter Oblin, CFO Vienna, 11 March 2022 INVESTOR PRESENTATION Investor Relations Vienna, 11 March 2022
Slide 2: 1. Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results FY 2021 4. Outlook 2022 INVESTOR PRESENTATION Investor Relations Vienna, 11 March 2022 2
Slide 3: Austrian Post at a Glance
AUSTRIAN POST AT A GLANCE Mail Parcel & Logistics Retail & Bank Revenue mix 2021 – 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 Parcel
Slide 4: Ongoing Structural Change
ONGOING STRUCTURAL CHANGE Continuous parcel growth results in revenue increase Mail and parcel as strong pillars Revenue in EUR m 2,519.6 2,192.0 2,021.6 1,820.2 913.6 1,245.7 271.0 632.5 Parcel & Logistics Mail Retail & Bank 1,389.4 1,320.1 1,222.7 1,224.2 157.9 80.5 67.4 74.7 2010 1 2019 2020 2021
Slide 5: Overview 2021
OVERVIEW 2021 − Unstable economic environment in 2021: Recovery phase followed by supply bottlenecks and inflation; devaluation of the Turkish lira Trends − COVID-19 pandemic: Positive and negative special effects − Increased own delivery by a large customer in Austria in the course of the year Grou
Slide 6: Group Revenue Increased to EUR 2.5bn
GROUP REVENUE INCREASED TO EUR 2.5BN Revenue development EUR m +14.9% Group: +14.9% to EUR 2,519.6m (Q4: -1.0%) Organic (+5.7%) and inorganic growth of the parcel business (+5.7% organic) 2,519.6 Mail: +0.1% to EUR 1,224.2m (Q4: -2.5%) – Letter Mail & Business Solutions revenue down by 1.3% to EUR 2
Slide 7: Further Earnings Improvement Due to Strong Parcel Growth
FURTHER EARNINGS IMPROVEMENT DUE TO STRONG PARCEL GROWTH EBIT development EUR m Group: +27.5% to EUR 204.7m +27.5% Mail decline is more than offset by increase in Parcel & Logistics and Retail & Bank divisions 204.7 Mail: -5.6% to EUR 155.2m – Positive effects on letter mail from product and postal
Slide 8: Clear Capital Market Positioning
CLEAR CAPITAL MARKET POSITIONING Profitable and growing business model Reliability (“Promise & Deliver“) 208 211 201 205 197 198 202 182 186 135 2,520 168 523 531 557 527 505 500 498 Revenue 157 161 EBIT 2,192 trans-o-flex 149 in EUR m 1,839 1,862 1,864 1,904 1,896 1,939 1,958 2,022 in EUR m 1,834 1
Slide 9: 2. Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results FY 2021 4. Outlook 2022 INVESTOR PRESENTATION Investor Relations Vienna, 11 March 2022 9
Slide 10: INVESTOR PRESENTATION Investor Relations Vienna, 11 March 2022
INVESTOR PRESENTATION Investor Relations Vienna, 11 March 2022 10
Slide 11: Letter Mail
1 LETTER MAIL 2020-2021 Austrian Letter Mail volumes (daily items) Volumes Austria and International Continuing decline of letter mail volumes (millions of items) − Q4 2021: -3% (vs. -2% in Q4 2020) − 2021: -4% (vs. -7% in 2020) Ø -4.3% p.a. Ø -5.6% p.a. 939 931 910 833 764 728 723 690 643 615 -1% -
Slide 12: International Comparison: Priority and Non-Priority Rates in Europe
1 INTERNATIONAL COMPARISON : PRIORITY AND NON-PRIORITY RATES IN EUROPE 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 Domestic standard Czech Republic 1.19 1.64 letter <20g France 1.21
Slide 13: Direct Mail/Media Post in Austria
1 DIRECT MAIL/MEDIA POST IN AUSTRIA 2020-2021 Direct Mail/Media Post volumes (daily items) Volumes Extremely negative impact due to lockdowns, (millions of items) increased volatility at present − Q4 2021: -2% (vs. -8% in Q4 2020) Ø -1.8% p.a. − 2021: -1% (vs. sharp decline of 12% in 2020) Ø -6.2% p
Slide 14: Parcel Business in Austria: 184m Parcels in 2021
1 PARCEL BUSINESS IN AUSTRIA: 184M PARCELS IN 2021 2020-2021 Parcel volumes (daily items) Volumes Lower growth after high increase in the (millions of parcels) previous year − Q4 2021: +1% (vs. +33% in Q4 2020) − 2021: +11% (vs. +30% in 2020) Ø +9.8% p.a. Ø +20.4% p.a. 184 166 +44% 127 +36% +33% 108
Slide 15: Business Environment in the Austrian Parcel Market
1 BUSINESS ENVIRONMENT IN THE AUSTRIAN PARCEL MARKET Market statistics for Austria in 2021 Market shares by volume – Total market volume up by 21.0% to 347m parcels Business customer parcels Other – Business customer parcels: +7.1% to 99m parcels DHL Express 7% 5% – Private customer parcels: +27.6%
Slide 16: Investments in the Logistics Infrastructure
1 INVESTMENTS IN THE LOGISTICS INFRASTRUCTURE CAPEX (EUR m) 161 153 139 143 Investment programme continues in 2021: ~80 - Maintenance CAPEX of EUR 81.2m Growth CAPEX - Growth CAPEX of EUR 80.1m 80 Future investment programme on the back of annual volume increase and transition to CO2-free delivery -
Slide 17: Expansion of the Austrian Logistics Infrastructure
1 EXPANSION OF THE AUSTRIAN LOGISTICS INFRASTRUCTURE 2018 2019 2020 2021 2022 2023 Sorting capacity Austria LC Vienna (parcels/h) LC Upper Austria 142,000 LC Styria 118,000 LC Lower Austria LC Tyrol 96,500 LC Vorarlberg 90,000 LC Salzburg Thalgau 85,000 LC Styria 75,000 LC Lower Austria LC Lower Aus
Slide 18: Staff Structure in Austria
1 STAFF STRUCTURE IN AUSTRIA Employees in the Austrian core business FTEs (average for the period) Increased demand for logistics 21,926 staff due to higher parcel volumes 21,003 490 20,218 20,064 +222 19,417 1,891 18,790 18,233 2,490 17,692 17,463 17,644 17,452 17,775 17,997 3,350 3,858 9,397 4,374
Slide 19: 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 20: Ongoing Growth in the International Parcel Markets
2 ONGOING GROWTH IN THE INTERNATIONAL PARCEL MARKETS OF AUSTRIAN POST Parcel volumes Turkey & CEE/SEE 269 (millions of parcels) 250 190 185 172 149 217 139 130 206 116 Turkey: Major growth opportunities 156 150 in e-commerce despite challenging 139 environment 112 120 106 95 CEE/SEE: Continuing posi
Slide 21: Aras Kargo – 217m Parcels in 2021
2 ARAS KARGO – 217M PARCELS IN 2021 Financial indicators – Revenue 2021: TRY 2,993m (≙ EUR 291m) – 5% parcel growth in 2021 – Company features a strong balance sheet, no loan liabilities Parcel volumes1 Revenue FX rate Turkish Lira (millions of parcels) (TRY m) (1 EUR in TRY) Ø +21.2% 2,993 217 206
Slide 22: 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 Complementary strengths in bank99 Technical integration the product structure Retail and digital bank Customers Organisational 200,000 Current accounts integration Employees 34
Slide 23: Self-Service Zones: Innovative Services for Sending and Receiving
3 SELF-SERVICE ZONES: INNOVATIVE SERVICES FOR SENDING AND RECEIVING 58,550 pick-up boxes 97,747 compartments in pick-up 510 drop-off shipping stations 2021: >4.7m items stations 2021: >9.4m items 2021: >6.0m items June 2012 December 2021 November 2013 December 2021 January 2012 December 2021 2021 vs
Slide 24: INVESTOR PRESENTATION Investor Relations Vienna, 11 March 2022
INVESTOR PRESENTATION Investor Relations Vienna, 11 March 2022 24
Slide 25: Strategic Sustainability Targets 2030
STRATEGIC SUSTAINABILITY TARGETS 2030 Economy & Customers Continuation of growth trend Revenue of EUR 3bn in 2030 based on steady parcel growth Environment & Climate Decarbonisation of logistics: − 38% reduction of absolute Scope 1 & 2 CO2-emissions by 2030 − 70% reduction of specific Scope 1, 2 & 3
Slide 26: Sustainability Masterplan 2030
SUSTAINABILITY MASTERPLAN 2030 Material Topics UN SDG‘s Economy & Customers 1 Sustainable appearance & services for private customers 2 Sustainable mail & parcel products Commercial success driven by sustainable and 3 Sustainable procurement customer-focused services 4 Sustainable governance & compl
Slide 27: Ambitious Science Based Carbon Emission Targets Lead the Way to Net Zero
AMBITIOUS SCIENCE BASED CARBON EMISSION TARGETS LEAD THE WAY TO NET ZERO Group carbon emissions tonnes Direct emissions (Scope 1 and 2) Indirect emissions (Scope 3) -23% Decarbonisation Road to Paris Improvement of operational 1 -38% efficiency Expansion of E-vehicle fleet 2 and E-fuel/hydrogen pilo
Slide 28: Decarbonisation – Roadmap Austria by 2040
DECARBONISATION – ROADMAP AUSTRIA BY 2040 Carbon emissions Austria (Scope 1-3) tonnes Transport volumes +71% 95,800 93,000 Transport logistics 28,000 42,600 63,000 Delivery of 30,100 letters and parcels 34,400 H H H H H Buildings 37,700 16,000 2009 2021 2030e 2040e Numbers of Österreichische Post AG
Slide 29: Goal 2030: 100% Carbon-Free Delivery in Austria
GOAL 2030: 100% CARBON-FREE DELIVERY IN AUSTRIA Austrian Post orders only e-vehicles Bikes Cars Transporters for delivery with immediate effect E-vehicle fleet ramp up curve (vehicles in Austria) >3,000 2,418 118 2011 2021 2022e 2030e 1-spurig 2-spurig INVESTOR PRESENTATION Investor Relations Vienna
Slide 30: Efficient New Technologies for Trucks
EFFICIENT NEW TECHNOLOGIES FOR TRUCKS First LNG-Truck in use at Austrian Post Hydrogen Cooperations – Important transitional technology to carbon-free – Austrian Post-OMV partnership to develop the heavy-duty traffic production, infrastructure and integration of green – LNG (Liquefied Natural Gas),
Slide 31: Diversity Management Helps to Improve Performance
DIVERSITY MANAGEMENT HELPS TO IMPROVE PERFORMANCE Employees from different Charter of countries 2021 Diversity – 4,994 Austrian Post’s – Creating and fostering a employees come from 95 working environment which is different countries (not free from prejudice and including Austria) discrimination Gen
Slide 32: First-Time Reporting in Accordance with the EU Taxonomy Regulation
FIRST-TIME REPORTING IN ACCORDANCE WITH THE EU TAXONOMY REGULATION Analysis of the service Acceptance/ 1 provision process concerning Pick-up Transport its taxonomy compliance Sorting/ Sorting/ Last-mile delivery Distribution Distribution KPIs pursuant to IFRS 2021: Economic activities identified wi
Slide 33: Our Reporting Is Excellent and Will Be Further Improved
OUR REPORTING IS “EXCELLENT“ AND WILL BE FURTHER IMPROVED Our reporting guidelines: Excellent reporting in 2020: Legal stipulations of the Ongoing further develop- Sustainability and Diversity ment of reporting in 2021: Improvement Act International standards of the Global Reporting Initiative (GRI)
Slide 34: Our ESG Credentials Demonstrate a Strong Track Record
OUR ESG CREDENTIALS DEMONSTRATE A STRONG TRACK RECORD Unchanged highest possible rating (AAA) for AAA (range from AAA to CCC) Austrian Post since 2016 Prime Status, Within the top 15% of the Transportation & Rating C+ (range from A+ to D-) Logistics sector A- (range from A to D-) Among top 6 compani
Slide 35: 3. Group Results FY 2021
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS FY 2021 4. Outlook 2022 INVESTOR PRESENTATION Investor Relations Vienna, 11 March 2022 35
Slide 36: Financial Indicators at a Glance
FINANCIAL INDICATORS AT A GLANCE 2020 2021 1 Revenue (EUR m) 2,192.0 2,519.6 Revenue development of +14.9% (+5.7% organic) EBITDA margin (%) 13.8 14.7 EBITDA margin rise due to the strong parcel business EBIT margin (%) 7.3 8.1 EBIT margin above the previous year at 8.1% Earnings/share (EUR) 1.75 2.
Slide 37: Key Income Statement Indicators
KEY INCOME STATEMENT INDICATORS EUR m 20201 2021 % ∆ Q4 20201 Q4 2021 Revenue 2,192.0 2,519.6 14.9% 327.6 692.5 685.4 Divisional revenue: Parcel & Logistics +36.4%, Retail & Other operating income 64.1 95.2 48.5% 31.1 20.1 35.8 Bank +10.8%, Mail +0.1% Raw materials, cons. and services used -596.2 -7
Slide 38: Mail Division: 2021 Revenue Development
MAIL DIVISION: 2021 REVENUE DEVELOPMENT Letter Mail & Business Solutions (EUR m) Direct Mail/Media Post (EUR m) – Downward volume development continues: -4% in 2021 – Slight volume decline of 1% in Austria 2021 following sharp vs. -7% in the turbulent COVID-19 year 2020 drop of 12% in 2020 – Positiv
Slide 39: Mail Division: Key Income Statement Indicators
MAIL DIVISION: KEY INCOME STATEMENT INDICATORS EUR m 2020 2021 % ∆ Q4 2020 Q4 2021 Revenue 1,222.7 1,224.2 0.1% 1.5 339.4 330.8 Further decline in volumes and difficult underlying • Letter Mail & Business Solutions 781.8 771.6 -1.3% -10.3 215.6 201.6 conditions; positive effects from special mailing
Slide 40: Parcel & Logistics Division: 2021 Revenue Development
PARCEL & LOGISTICS DIVISION: 2021 REVENUE DEVELOPMENT Revenue development Parcel & Logistics Division: +36.4% EUR m +14.2% organic as well as inorganic growth in parcel +36.4% Austria: EUR +123.4m (+14.2% organic) – Parcel volumes up by 11% in Austria, positive special effects for logistics services
Slide 41: Parcel & Logistics Division: Key Income Statement Indicators
PARCEL & LOGISTICS DIVISION: KEY INCOME STATEMENT INDICATORS EUR m 2020 2021 % ∆ Q4 2020 Q4 2021 Ongoing organic growth Revenue 913.6 1,245.7 36.4% 332.2 336.9 340.1 (+14.2%) and inorganic growth • Premium 568.0 822.2 44.8% 254.2 224.9 215.3 in the parcel business • Standard 274.0 313.2 14.3% 39.2 9
Slide 42: Retail & Bank Division: 2021 Revenue Development
RETAIL & BANK DIVISION: 2021 REVENUE DEVELOPMENT Revenue development Retail & Bank Division: +10.8% EUR m Launch of bank99 in April 2020, acquisition of the private +10.8% customer business of ING in Austria at the end of 2021 74.7 Income from Financial Services: 67.4 ING EUR +10.3m – Positive devel
Slide 43: Retail & Bank Division: Key Income Statement Indicators
RETAIL & BANK DIVISION: KEY INCOME STATEMENT INDICATORS EUR m 20201 2021 % ∆ Q4 20201 Q4 2021 Revenue from retail goods Revenue 67.4 74.7 10.8% 7.3 20.1 22.2 down YOY, increase due to additional orders for branch • Branch Services 44.8 41.8 -6.8% -3.0 11.5 11.9 products • Income from Financial Servi
Slide 44: Solid Balance Sheet and Financing Structure
SOLID BALANCE SHEET AND FINANCING STRUCTURE EUR m ASSETS 4,792.6 EQUITY & 4,792.6 Liquid financial resources LIABILITIES 117.2 Includes lease liabilities of 90.1 of EUR 117m 404.4 EUR 334m (IFRS 16) 484.6 EUR 1,218m in cash and 2,715.8 cash equivalents from bank99 and Cash, money market / securities
Slide 45: 2021 Operating Free Cash Flow of EUR 218m
2021 OPERATING FREE CASH FLOW OF EUR 218M EUR m Mainly customer Operating free cash flow Free cash flow before money market and deposits of bank99 of EUR 218m securities investments of EUR 475m 493.3 +337.6 475.2 300.1 -193.2 217.9 -81.2 -1.0 -80.1 -0.2 Cash flow from Core banking Cash flow from Mai
Slide 46: Dividend Policy
DIVIDEND POLICY Continuation of attractive and predictable dividend policy since the IPO – Dividend proposal to the Annual Dividends since IPO General Meeting: EUR 1.90/share – Dividend yield as at 31 December Dividend in EUR 2.08 2.08 2021: 5.0% (share price of Payout ratio 2.00 2.05 1.90 1.95 1.95
Slide 47: 4. Outlook 2022
1. Highlights and Overview 2. Strategy Implementation 3. Group Results FY 2021 4. OUTLOOK 2022 INVESTOR PRESENTATION Investor Relations Vienna, 11 March 2022 47
Slide 48: Outlook 2022
OUTLOOK 2022 Market environment – Economic environment in 2022 impacted by inflation, loss of purchasing power and restrained consumer behaviour – Inflation expected to be reinforced due to war in the Ukraine – Positive special effects from pandemic for parcel and logistics services decline in 2022
Slide 49: Contact
CONTACT Austrian Post Financial calendar 2022 Investor Relations 21 April 2022 Annual General Meeting Rochusplatz 1, 1030 Vienna 3 May/5 May 2022 Ex-day/Dividend Payment Day Website: post.at/ir 13 May 2022 Interim Report Q1 2022 E-mail: investor@post.at 11 August 2022 Half-Year Financial Report 2022