Slide 1: Investor Presentation Q1-3 2016
AUSTRIAN POST INVESTOR PRESENTATION Q1-3 2016 Walter Oblin/CFO Vienna, November 11, 2016
Slide 2: Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results Q1-3 2016 4. Outlook 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, November 11, 2016 2
Slide 3: Highlights Q1-3 2016
HIGHLIGHTS Q1-3 2016 • Ongoing e-substitution of addressed letter mail MARKET • Parcel market characterised by growing e-commerce and intensified competition • Stable Q1-3 revenue excl. trans-o-flex of EUR 1,375.5m (-0.1%) REVENUE • Reported revenue down to EUR 1,510.4m (Q1-3 2015: EUR 1,746.5m) due
Slide 4: Stable revenue in the core business
STABLE REVENUE IN THE CORE BUSINESS REVENUE DEVELOPMENT EUR m GROUP: 1,746.5 • Stable revenue excl. trans-o-flex of EUR 1,375.5m -0.1% (down 1.6% in Q3) 369.8 1,510.4 • Reported revenue down from EUR 1,746.5m to 1,376.7 1,375.5 134.8 EUR 1,510.4m due to sale of trans-o-flex 287.2 +3.5% 297.2 PARCEL
Slide 5: Stable EBIT in Q1-3 2016
STABLE EBIT IN Q1-3 2016 EBIT DEVELOPMENT EUR m +0.2% GROUP: 135.2 135.5 EBIT of EUR 135.5m at the prior-year level (+0.2%); +3.1 improvement following disposal of trans-o-flex is in Q3 -11.0 Q3 contrast to negative effects from interest-bearing +8.3 38.7 36.8 provisions (non-cash) MAIL & BRANCH NET
Slide 6: 2. Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results Q1-3 2016 4. Outlook 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, November 11, 2016 6
Slide 7: Clear strategic priorities
CLEAR STRATEGIC PRIORITIES DEFENDING MARKET LEADERSHIP IN PROFITABLE GROWTH IN 1. THE CORE BUSINESS 2. SELECTED MARKETS Safeguarding of market position in a competitive Focusing and performance enhancement environment ENHANCING EFFICIENCY AND CUSTOMER ORIENTATION AND 3. OPTIMISING THE COST STRUCTURE
Slide 8: Austrian Post provides new ideas for the mail market
AUSTRIAN POST PROVIDES NEW 1 IDEAS FOR THE MAIL MARKET LETTER MAIL DIRECT MAIL/MEDIA POST Ongoing e-substitution (banks, insurance companies, Volatile advertising market, diverging public institutions) development of individual customer groups Focus on absentee Multi-year cooperation voting: Trend t
Slide 9: Ongoing growth of the Austrian parcel business
ONGOING GROWTH OF THE AUSTRIAN 1 PARCEL BUSINESS PARCEL BUSINESS OF AUSTRIAN POST Strong market growth thanks to e-commerce against the backdrop of intensified competition Efficiency enhancement in 2017 – Even more parcels and packets to be delivered by mail carriers Improved parcel revenue in Q1-3
Slide 10: Growth in selected markets
2 GROWTH IN SELECTED MARKETS ACTIVE IN 12 MARKETS – GROWTH FOCUS ON PARCEL & LOGISTICS CEE/SEE Parcel subsidiaries: • Ongoing positive volume development and strong export growth • Intensive competition and price pressure GERMANY Mail subsidiaries: trans-o-flex: • Signing for disposal of PostMaster
Slide 11: Staff structure in Austria
3 STAFF STRUCTURE IN AUSTRIA FULL TIME EQUIVALENTS IN THE CORE BUSINESS IN AUSTRIA (average for the period) 21,926 Change 490 21,003 -565 FTE Q1-3 2015/Q1-3 2016: 20,218 20,064 1,891 19,417 – 393 Civil servants 2,490 18,790 18,371 3,350 17,806 – 492 Old CWA 3,858 9,397 4,374 + 320 New CWA 4,809 7,88
Slide 12: New customer solutions are widely accepted
4 NEW CUSTOMER SOLUTIONS ARE WIDELY ACCEPTED INNOVATIVE 24/7 SELF-SERVICE SOLUTIONS 17,300 pick-up boxes 250 pick-up stations 330 drop-off stations Jun.12 Oct. 16 Nov.13 Oct.16 Jan. 12 Oct. 16 Pick-up boxes Items per month Pick-up stations Items per month Drop-off stations Items per month INVESTOR P
Slide 13: New innovations in the parcel business
4 NEW INNOVATIONS IN THE PARCEL BUSINESS PARCEL PICKUP AS PART OF THE POST FLEXIBOX FOR EVERY DOORSTEP DELIVERY PROCESS • Available starting mid-November 2016 • Since October 1, 2016 • For use indoors and weather-protected • For labelled parcels/returns exterior areas • Service for private customers
Slide 14: 3. Group Results Q1-3 2016
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS Q1-3 2016 4. Outlook 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, November 11, 2016 14
Slide 15: Financial indicators Q1-3 2016 at a glance
FINANCIAL INDICATORS Q1-3 2016 AT A GLANCE Q1-3 20151 Q1-3 2016 Revenue below the previous year due to Revenue (EUR m) 1,746.5 1,510.4 deconsolidation of trans-o-flex Revenue excl. 1,376.7 1,375.5 Stable revenue (-0.1%) in the core business trans-o-flex (EUR m) EBITDA margin 11.4% 12.7% Improved EBI
Slide 16: Revenue and earnings impacted by elections and interest rate effects on provisions
REVENUE AND EARNINGS IMPACTED BY ELECTIONS AND INTEREST RATE EFFECTS ON PROVISIONS ELECTIONS EFFECTS EUR m 11.5 13.5 10.5 3.5 5.0 0.0 2.0 2.0 2015 Q1 Q2 Q3 Q1-3 2016 ∆Q3: ∆Q1-3: - EUR 3.0m + EUR 3.0m NON-OPERATIONAL STAFF COSTS (incl. changes in provisions related to a change in the discount interes
Slide 17: Key profit and loss account indicators
KEY PROFIT AND LOSS ACCOUNT INDICATORS Change Disposal of trans-o- flex: EUR 369.8m EUR m Q1-3 20151 Q1-3 2016 % ∆ Q3 20151 Q3 2016 in Q1-3 2015 vs. Revenue 1,746.5 1,510.4 -13.5% -236.2 571.6 439.3 EUR 134.8m in Q1-3 2016 Other operating income 50.4 50.1 -0.5% -0.2 17.6 14.0 Interest rate Raw mater
Slide 18: Mail & Branch Network division: Q1-3 2016 revenue development
MAIL & BRANCH NETWORK DIVISION: Q1-3 2016 REVENUE DEVELOPMENT LETTER MAIL & MAIL SOLUTIONS (EUR m) DIRECT MAIL/MEDIA POST (EUR m) • Decline of letter mail volume by about 5% • Reduced advertising activities on the part of individual customer groups, positive effect of the • Lower revenue contributio
Slide 19: Mail & Branch Network division: profit and loss account
MAIL & BRANCH NETWORK DIVISION: PROFIT AND LOSS ACCOUNT Change EUR m Q1-3 2015 Q1-3 2016 % ∆ Q3 2015 Q3 2016 Positive election effects in Q1-3 2016 Revenue 1,089.5 1,078.3 -1.0% -11.2 351.5 341.6 were EUR 3.0m • Letter Mail & Mail-Solutions 587.4 584.5 -0.5% -2.9 186.7 181.0 higher than in Q1-3 2015
Slide 20: Parcel & Logistics division: Q1-3 2016 revenue development
PARCEL & LOGISTICS DIVISION: Q1-3 2016 REVENUE DEVELOPMENT REVENUE (EUR m) 657.0 PARCEL & LOGISTICS DIVISION: • Revenue up 3.5% in Q1-3 excl. trans-o-flex (Q3: +3.0%) Germany1 369.8 (trans-o-flex sold 432.0 GERMANY: as at April 8, • Disposal of trans-o-flex as at April 8, 2016 2016) 134.8 +3.5% 287.
Slide 21: Parcel & Logistics division: profit and loss account
PARCEL & LOGISTICS DIVISION: PROFIT AND LOSS ACCOUNT Change EUR m Q1-3 20151 Q1-3 2016 % ∆ Q3 20151 Q3 2016 Revenue excl. trans-o-flex 287.2 297.2 3.5% 10.0 94.8 97.7 Overall revenue decline due to sale Revenue 657.0 432.0 -34.2% -225.0 220.1 97.7 of trans-o-flex, but • Premium 490.1 276.9 -43.5% -2
Slide 22: Solid balance sheet structure
SOLID BALANCE SHEET STRUCTURE BALANCE SHEET AS AT SEPTEMBER 30, 2016 EUR m Financial liabilities of only EUR 6m 1,491.6 1,491.6 Other financial liabilities 5.6 Cash and cash equivalents/ Structure of provisions Securities1 322.5 Liabilities/ EUR m 366.4 Other Other provisions Liquid financial Financ
Slide 23: Robust cash flow Q1-3 2016
ROBUST CASH FLOW Q1-3 2016 CASH FLOW DEVELOPMENT EUR m Cash flow from operating activities above the prior-year level 158.9 Improved operating free cash flow in Q1-3 2016 128.9 -30.1 +2.5 102.0 -26.3 -3.0 Cash flow Operating Operating CAPEX new Other Acquisitions/ Free cash flow from CAPEX free cash
Slide 24: 4. Outlook 2016
1. Highlights and Overview 2. Strategy Implementation 3. Group Results Q1-3 2016 4. OUTLOOK 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, November 11, 2016 24
Slide 25: Unchanged outlook for 2016
UNCHANGED OUTLOOK FOR 2016 • Public and financial sector customers are trying to reduce mail volumes. A volume Market decline of about 5% continues to be expected in upcoming quarterly periods. environment • Differentiated trends in the direct mail market • Expanding parcel market featuring intensif
Slide 26: Contact
CONTACT Austrian Post Financial calendar 2017 Investor Relations March 9, 2017 Annual results 2016 Haidingergasse 1, 1030 Vienna April 20, 2017 Annual General Meeting Website: www.post.at/ir May 2/4, 2017 Ex-dividend day/Dividend payment date E-mail: investor@post.at May 12, 2017 Interim report Q1 2
Slide 27: HIER KONNEN
HIER KONNEN 5 IE SEN RBUNGEN NON a BIS a UHR SELBST A OLEN. Y Seis IF IT REALL ae RELY ON AUSTRIAN POST.