Osterreichische Post Ag · VIE:POST

Osterreichische Post — Austrian Post — Q1-3 2020 Earnings Presentation

37 slides from Osterreichische Post's earnings presentation, Nov 13, 2020

  1. Slide 1: Austrian Post Investor Presentation Q1-3 2020

    AUSTRIAN POST Investor Presentation Q1-3 2020 Walter Oblin, CFO Vienna, 13 November 2020

  2. Slide 2: 1. Highlights and Overview

    1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results Q1-3 2020 4. Outlook 2020

  3. Slide 3: Austrian Post at a Glance

    AUSTRIAN POST AT A GLANCE WP New divisional structure enhances transparency Mail Parcel & Logistics | Retail & Bank Revenue mix Q1-3 2020 @ 01-3:2020 vs. q1-3 2019 - Letter Mail - Parcels and express - Branch and financial - Direct Mail - Fulfillment & cash services - Newspapers and transport - Cust

  4. Slide 4: 2020 Impacted by COVID-19 - Improved Trends in Q3

    2020 IMPACTED BY COVID-19 - IMPROVED TRENDS IN Q3 Q2 Volume development r -13% ™| Letter Mail Loss in public mail . . -25% Direct Mail Decline in advertising mail due to lockdown 7 >40% Parcel Increased online volumes + DHL cooperation Logistics- Additional expenses due to health measures and higher

  5. Slide 5: Overview Q1-3 2020

    OVERVIEW Q1-3 2020 WY Increase in parcel business offsets the decline in Mail OQ «& Revenue Earnings /EBIT Investment programme Outok 2020 J - Revenue +2.4% to - EBIT of logistics business - Parcel logistics centre - Revenue growth >3% EUR 1,497.9m -10% to EUR 118.7m Kalsdorf/Graz since July -_ EBIT

  6. Slide 6: Good Parcel Business Generates Revenue Growth

    GOOD PARCEL BUSINESS GENERATES REVENUE GROWTH GT Revenue development Q1-3 EURm Group: +2.4% (Q3: +7.3% to EUR 516.0m) | +2.4% ] Revenue increase despite COVID-19 Mail: -9.0% (Q3: -5.6%) 1,462.2 _ _ 1497.9 - Revenue decline of 6.3% in Letter Mail & Mail Solutions to ~~ HE EUR 566.2m in Q1-3 related t

  7. Slide 7: Earnings Impacted by COVID-19 and Launch of bank99

    EARNINGS IMPACTED BY COVID-19 AND LAUNCH OF BANK99 KZ EBIT development Q1-3 EURm -37.4% -10.0% Group: -37.4% (Q3: +48.5% to EUR 33.2m) 130.0 - EBIT Q3 marked by recovery after lockdown — 7 - Earnings in the logistics business of EUR 118.7m (-10.0%) +1.8 | | . oe in Q1-3; earnings of all divisions ne

  8. Slide 8: 2. Strategy Implementation

    1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results Q1-3 2020 4. Outlook 2020 M74

  9. Slide 9: Forward into the Future

    FORWARD INTO THE FUTURE Profitable growth in near markets 1 Defending market leadership and CT profitability in the 300 core business 3 Build-up of retail and digital offerings for private customers and SMEs INVESTOR PRESENTATION Investor Relations Vienna, 13 November 2020

  10. Slide 10: Letter Mail Q1-3 2020

    Fa LETTER MAIL CV Letter Mail Q1-3 2020 Letter Mail volumes (millions of items) @ -4.3% | 939 931 910 [ 4.6%) Letter Mail volumes Austria 2020 833 (items on a daily basis) QI: -4% to-5% Q2: about -13% Q3: -6% 2012 2013 2014 2015 2016' 2017 2018 2019 International Letter Mail Ml Austrian Letter Mail

  11. Slide 11: Direct Mail/Media Post in Austria

    Fa DIRECT MAIL/MEDIA POST IN AUSTRIA KZ kuvert_~ <= Direct Mail/Media Post Q1-3 2020 Direct Mail/Media Post (millions of items) @ -1.8% 33%} Direct Mail/Media Post volumes Austria 2020 5,108 4 883 4,737 4,727 4,765 4,599 4,816 4559 4,417 (items on a daily basis) ‘ Q1: about -9% Q2: about -25% Q3: ab

  12. Slide 12: Parcel Business in Austria: 150m Already Expected in 2020

    Fa PARCEL BUSINESS IN AUSTRIA: 150M ALREADY EXPECTED IN 2020 Le Parcel business Q1-3 2020 Parcel volumes (millions of parcels) +154% ogee Parcel business volumes in 2020 (parcels on a daily basis) 108 © QI: +28% Q2: >40% Q3: +18% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020e2021e Jan

  13. Slide 13: Capacity Drive Based on Growth Forecasts

    Ea CAPACITY DRIVE BASED ON GROWTH FORECASTS KZ Logistics Centre Styria (Kalsdorf) Investment programme will be continued in 2020, enabling the company to manage increasing volumes and ensure enhanced efficiency in upcoming years. CAPEX still at a high level: - Maintenance CAPEX of EUR 34.8m in Q1-3

  14. Slide 14: Expansion of Logistics Infrastructure in Austria

    Ea EXPANSION OF LOGISTICS INFRASTRUCTURE IN AUSTRIA a A Phase 1 LC Carinthia Wernberg Phase 2 140,000 30% capacity increase in 2020 Hagenbrunn 100,000 80,000 60,000 P h as e 3 Sorting capacity at the end of 2020: >80,000 parcels/h PB INVESTOR PRESENTATION Investor Relations Vienna, 13 November 2020

  15. Slide 15: Staff Structure in Austria

    STAFF STRUCTURE IN AUSTRIA Full-time equivalents in the Austrian core business (average for the period) 20,218 20,064 19,417 [+207 FTE| 1,891 " 18,790 48 933 2,490 " 17,692 17,463 17,644 17,508 17,716 5,881 7095 7967 9.990 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1-3 QI1-3 2019 2020 INVEST

  16. Slide 16: Growth in Selected Markets

    Ea GROWTH IN SELECTED MARKETS Growth focus on Parcel & Logistics GERMANY AEP (51.5% stake, at-equity consolidation) - Pharmaceutical wholesale joint venture - Revenue up by +12% in Q1-3 to EUR 400m - Positive EBIT in Q1-3 Austrian Post International Germany - Strong competition in the international

  17. Slide 17: Aras Kargo

    Ea ARAS KARGO Sj Profile of Aras Kargo - Turkey's second largest parcel services provider, est. 1979 About 6,000 employees, 28 logistics sites - 1,000+ branches and 4,000+ vehicles - 150m parcels and documents in 2019 Financial indicators - Q1-3 2020 revenue: TRY 1,581m (2 EUR 160m) Revenue Aras Kar

  18. Slide 18: The Development of bank99 Since April 2020

    El THE DEVELOPMENT OF BANK99 SINCE 1 APRIL 2020 (GO LIVE) || jiipererel aol ee 1) ee bea ea El ie oe il Product offering Customer ramp-up 50,000 - Focused proprietary offering (payment transactions, (Number of customers) current accounts, savings products, consumer financing) - Commission-based part

  19. Slide 19: The Product Roadmap of bank99

    El THE PRODUCT-ROADMAP OF BANK99 lo | | 2020 2021 a konto99 (current account) JA - Building society savings in Expansion of geschaftskonto99 sparkonto99 (savings acc.) J cooperation with Wistenrot (business) bildungskonto99 (learning) J ~ Life insurance in J - Expansion consumer financing mn . coope

  20. Slide 20: Self-Service Solutions in the Postal Branch Network

    SELF-SERVICE SOLUTIONS IN THE POSTAL BRANCH NETWORK KZ Q1-3 2020: >3.0m items Q1-3 2020: >3.2m items Q1-3 2020: >5.2m items 50,642 pick-up boxes 81,146 boxes in pick-up stations 464 drop-off boxes °. er first delivery mpt success rate Jun.12 Sep.20 Nov.13 Sep.20 Jani2 Sep.20 @ 07-3 2020 vs. 1-3 2019

  21. Slide 21: shöpping.at - Austria's Largest Online Shopping Platform

    EA sh2pping.at - AUSTRIA'S LARGEST ONLINE SHOPPING PLATFORM ‘C7 - The online marketplace was accessed more than 8.3m times in the period January-September 2020 - Shipment of close to 250,000 parcels in Q1-3 2020 - More than 2.4m products listed, over 1,000 active retailers - Strong growth driven by

  22. Slide 22: Forward into the Future

    FORWARD INTO THE FUTURE Profitable growth in near markets 1 Defending market leadership and CT profitability in the 300 core business 3 Build-up of retail and digital offerings for private customers and SMEs INVESTOR PRESENTATION Investor Relations Vienna, 13 November 2020

  23. Slide 23: We Always Deliver a Solution ... Namely a Sustainable One

    WE ALWAYS DELIVER A SOLUTION ... KZA NAMELY A SUSTAINABLE ONE - ECOLOGICAL, ETHICAL, FAIR Main focus areas of the sustainability strategy Economy & Customers Environment & Climate People & Social Impact 1 | Sustainable mail & Green & efficient 10 Corporate & work parcel products mobility culture B S

  24. Slide 24: 3. Group Results Q1-3 2020

    1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS Q1-3 2020 4. Outlook 2020 M74 24

  25. Slide 25: Group Key Figures Q1-3 2020

    1,462.2 1,497.9 Increase of 2.4% in Q1-3 2020 14.8 12.0 EBITDA margin below the prior-year level 8.2% EBIT margin of logistics business 8.9 5.4/8.2 5.4% Group EBIT margin 1.48 1.03 Earnings per share EUR 0.45 YOY 153.2 94.6 Operating free cash flow below the prior-year level Changed equity ratio due

  26. Slide 26: Group Income Statement Q1-3 2020

    Q3 Q3 EUR m Q1-3 2019 Q1-3 2020 % ∆ 2019 2020 Revenue 1,462.2 1,497.9 2.4% 35.7 481.1 516.0 Other operating income 113.9 44.0 -61.3% -69.8 71.7 15.6 Raw materials, consumables, services -333.6 -378.3 -13.4% -44.7 -114.8 -130.8 Staff costs -744.7 -746.2 -0.2% -1.5 -237.4 -251.6 Other operating costs

  27. Slide 27: Mail Division: Revenue Development

    ™ MAIL DIVISION: REVENUE DEVELOPMENT GT EURm Letter Mail & Mail Solutions Q1-3 Direct Mail/Media Post Q1-3 - Revenue decline of 6.3% in Q1-3 2020 (-5.4% in Q3) - Revenue decline of 13.4% in Q1-3 2020 (-5.9% in Q3), volume - Volume decline of 8% for Letter Mail in Austria in decrease of about 12% in

  28. Slide 28: Mail Division Results Table

    EUR m Q1-3 20191 Q1-3 2020 % ∆ Q3 20191 Q3 2020 Revenue 970.2 883.3 -9.0% -86.9 310.0 292.7 • Letter Mail & Mail Solutions 604.3 566.2 -6.3% -38.1 195.4 184.9 • Direct Mail 271.9 232.8 -14.4% -39.1 85.6 80.0 • Media Post 94.0 84.3 -10.3% -9.7 28.9 27.8 Revenue intra-Group 2.0 2.0 1.8% 0.0 0.7 0.7 To

  29. Slide 29: Parcel & Logistics Division: Revenue Development

    ee PARCEL & LOGISTICS DIVISION: REVENUE DEVELOPMENT GT Revenue development Q1-3 Parcel & Logistics Division: +31.9% (Q3: +35.4%) EURm E-commerce boost related to COVID-19 pandemic continues; a +31.9% —T DHL cooperation leads to further rise in revenue in Austria 576.6 South East/Eastern Europe, Turk

  30. Slide 30: Parcel & Logistics Division Results Table

    EUR m Q1-3 20191 Q1-3 2020 % ∆ Q3 20191 Q3 2020 Revenue 437.2 576.6 31.9% 139.4 154.2 208.7 • Premium 239.5 343.1 43.3% 103.6 92.8 131.1 • Standard 154.7 182.5 18.0% 27.8 47.2 60.4 • Other Parcel Services 43.1 51.1 18.6% 8.0 14.2 17.3 Revenue intra-Group 0.5 0.7 40.4% 0.2 0.2 0.2 Total revenue 437.8

  31. Slide 31: Retail & Bank Division: Revenue Development

    ana RETAIL & BANK DIVISION: REVENUE DEVELOPMENT GT Revenue development Q1-3 Retail & Bank Division: -27.8% (Q3: -12.7%) EURm - Launch of bank99 in April 2020 -27.8% - Discontinuation of service fees from former banking pene] partner 63.4 Cash payments for Earnings from financial services third parti

  32. Slide 32: Retail & Bank Division Results Table

    EUR m Q1-3 20191 Q1-3 2020 % ∆ Q3 20191 Q3 2020 Revenue 63.4 45.7 -27.8% -17.6 19.6 17.1 • Branch Services 63.3 33.3 -47.5% -30.0 19.6 10.8 thereof service fees from former banking partner 25.4 - - - 6.6 - thereof cash payments for third parties (e.g. pensions) 6.9 - - - 2.3 - • Earnings from financ

  33. Slide 33: Balance Sheet Extension Due to New Financial Services Business/bank99 + Aras Kargo

    BALANCE SHEET EXTENSION (+18.8%) DUE TO NEW FINANCIAL SERVICES BUSINESS/BANK99 + ARAS KARGO EUR m ASSETS Cash/cash equiv,, money market/securities invest. Other financial assets, investment property Financial assets from financial services Receivables, inventories, other’ EUR 433m cash in bank99 Int

  34. Slide 34: Cash Flow

    228.6 0.0 228.6 -42.3 -2.8 153.2 -38.9 -18.9 -16.9 108.8

  35. Slide 35: 4. Outlook 2020

    1. Highlights and Overview 2. Strategy Implementation 3. Group Results Q1-3 2020 4. OUTLOOK 2020 M74 35

  36. Slide 36: Outlook 2020

    OUTLOOK 2020 WY ce mae) & Market environment - Basic assumption of a slow but steady economic recovery during the year - Volume development in the Letter Mail, Direct Mail and Parcel segments characterised by higher volatility and reduced visibility - Different possible scenarios for development of

  37. Slide 37: Contact

    CONTACT Austrian Post Financial calendar 2021 Investor Relations 12 March 2021 Annual Results 2020 Rochusplatz 1, 1030 Vienna 15 April 2021 Annual General Meeting Website: post.at/ir 27 April/29 April 2021 Ex-day/Dividend Payment Day E-mail: investor@post.at 12 May 2021 Interim Report Q1 2021 Teleph

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