Slide 1: Austrian Post Investor Presentation Q1 2015
AUSTRIAN POST INVESTOR PRESENTATION Q1 2015 Walter Oblin/CFO Vienna, May 7, 2015
Slide 2: 1. Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results Q1 2015 4. Outlook 2015 INVESTOR PRESENTATION I Investor Relations I Vienna, May 2015 2
Slide 3: Trends on the Postal and Logistics Market
TRENDS ON THE POSTAL AND LOGISTICS MARKET MARKET ENVIRONMENT REMAINS CHALLENGING AUSTRIAN LETTER MAIL MARKET Negative basic trend of e-substitution of traditional letters is continuing AUSTRIAN DIRECT MAIL MARKET Differentiated development of individual costumer segments PARCEL MARKET IN AUSTRIA Str
Slide 4: Highlights Q1 2015
HIGHLIGHTS Q1 2015 REVENUE EARNINGS • Slight revenue increase of 0.6% to • EBIT down 7.4% to EUR 53.9m EUR 601.9m • Earnings impacted by interest rate effect for • Decline in the mail business (-0.3%) offset staff-related provisions by parcel growth (+2.2%) • Rise in earnings per share to EUR 0.65 C
Slide 5: Slight Rise in Revenue in Q1 2015
SLIGHT RISE IN REVENUE IN Q1 2015 REVENUE DEVELOPMENT EUR m +0.6% GROUP: 598.4 601.9 Revenue up slightly by 0.6% year-on-year MAIL & BRANCH NETWORK: • Marginal revenue drop of 0.3% due to -0.3% electronic substitution and declining branch 378.7 377.5 network revenue • Solid development of direct mai
Slide 6: EBIT Influenced by Interest Rate Effect for Provisions
EBIT INFLUENCED BY INTEREST RATE EFFECT FOR PROVISIONS EBIT DEVELOPMENT GROUP: EUR m • EBIT decline of EUR 4.3m -7.4% • Earnings development impacted by interest rate effect for staff-related provisions 58.2 (minus EUR 4.8m) 53.9 -1.3 +1.7 -4.7 MAIL & BRANCH NETWORK: • Slight revenue decline • EBIT
Slide 7: 2. Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results Q1 2015 4. Outlook 2015 INVESTOR PRESENTATION I Investor Relations I Vienna, May 2015 7
Slide 8: Clear Strategic Priorities
CLEAR STRATEGIC PRIORITIES DEFENDING MARKET LEADERSHIP PROFITABLE GROWTH IN 1. IN THE CORE BUSINESS 2. SELECTED MARKETS Safeguarding of market position in a competitive Performance enhancement and leveraging of market environment potential against the backdrop of strong competition ENHANCING EFFICIE
Slide 9: 1. Mail and Parcel Business in Austria
1. MAIL AND PARCEL BUSINESS IN AUSTRIA LETTER MAIL AND DIRECT MAIL B2B AND B2C PARCELS • E-substitution in Q1 2015 in the predicted range of • Strong market position for private customers (77%) minus 3-5% and business customers (28%) • Absence of one-time mailings by certain • Competitors increasing
Slide 10: 2. Growth in Selected Markets
2. GROWTH IN SELECTED MARKETS Germany (trans-o-flex) • Intensely competitive B2B market and struggle for market shares combined with weak economic growth • Reorganisation of logistics processes Turkey • Focus on temperature-controlled • 25% stake in the second biggest pharmaceutical transport Turkis
Slide 11: Expansion of Temperature-Controlled Pharma Transport
EXPANSION OF TEMPERATURE-CONTROLLED 2. PHARMA TRANSPORT TRANS-O-FLEX INTENSIFIES FOCUS ON THE PHARMACEUTICALS MARKET • EU guideline “Good Distribution Practice“ (GDP) for temperature-controlled transport of pharmaceuticals (stricter legal requirements) • trans-o-flex presses ahead with capacity expa
Slide 12: 3. Optimisation of Processes and Structures
3. OPTIMISATION OF PROCESSES AND STRUCTURES MODERN LEADERSHIP STRUCTURES CUSTOMER-ORIENTED BRANCH NETWORK Teamwork 2018 in mail delivery Network stability achieved Area manager 1,302 postal partners, 519 own branches Assistant area manager 254 branch offices in the new design Team Team Team New comm
Slide 13: 3. Staff Structure in Austria
3. STAFF STRUCTURE IN AUSTRIA FULL-TIME EQUIVALENTS IN THE CORE BUSINESS IN AUSTRIA (average for the period) Change Q1 2014/2015: 21,003 -448 FTE 20,218 – 640 Civil servants 20,064 19,417 1,891 – 363 Old CWA 2,490 18,613 18,165 3,350 + 556 New CWA 3,858 3,828 = – 448 employees 4,384 7,883 7,247 6,78
Slide 14: 4. Customer Orientation and Innovation
4. CUSTOMER ORIENTATION AND INNOVATION ONGOING ROLL-OUT OF INNOVATIVE 24/7 SELF-SERVICE SOLUTIONS Franking machines Pick-up stations Pick-up boxes Post App & drop-off boxes 270 self-serv. zones 150 pick-up stations 9,500 pick-up boxes 200,000 Downloads 2015 target: 300 2015 target: 200 2015 target:
Slide 15: 3. Group Results Q1 2015
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS Q1 2015 4. Outlook 2015 INVESTOR PRESENTATION I Investor Relations I Vienna, May 2015 15
Slide 16: Financial Indicators Q1 2015 at a Glance
FINANCIAL INDICATORS Q1 2015 AT A GLANCE Q1 2014 Q1 2015 Revenue (EUR m) 598.4 601.9 Revenue slightly above prior year (+0.6%) EBITDA margin 13.2% 12.5% EBITDA margin of 12.5% within targeted range EBIT margin 9.7% 9.0% Ongoing high profitability Earnings/share (EUR) 0.64 0.65 Slight rise in earning
Slide 17: Key Income Statement Indicators
KEY INCOME STATEMENT INDICATORS Change EUR m Q1 2014 Q1 2015 % abs. Revenue 598.4 601.9 0.6% 3.5 Slight revenue rise of 0.6% Other operating income 16.5 16.4 -1.1% -0.2 Raw materials, consumables and Interest rate adjustments -183.8 -184.5 0.4% 0.7 lead to increased costs for services used staff-rel
Slide 18: Mail & Branch Network Division: Revenue Development Q1 2015
MAIL & BRANCH NETWORK DIVISION: REVENUE DEVELOPMENT Q1 2015 LETTER MAIL & MAIL SOLUTIONS (EUR m) DIRECT MAIL/MEDIA POST (EUR m) • Basic trend of e-substitution (minus 3-5% p.a.) • Solid development in the field of direct mail due to • Absence of one-time mailings by certain advertising impetus befor
Slide 19: Mail & Branch Network Division: Key Income Statement Indicators
MAIL & BRANCH NETWORK DIVISION: KEY INCOME STATEMENT INDICATORS Change EUR m Q1 20141 Q1 2015 % abs. Revenue 378.7 377.5 -0.3% -1.2 Solid revenue development featuring • Letter Mail & Mail-Solutions 207.0 206.4 -0.3% -0.6 slight decline • Direct Mail 105.7 109.1 3.3% 3.5 Revenue down for • Media Pos
Slide 20: Parcel & Logistics Division: Revenue Development Q1 2015
PARCEL & LOGISTICS DIVISION: REVENUE DEVELOPMENT Q1 2015 REVENUE (EUR m), REGIONAL MIX (%) +2.2% SOUTH EAST/EASTERN EUROPE: +11.0% 219.5 224.4 • Strong revenue growth, high price pressure CEE/SEE 8% +11.0% 9% • Good development in Slovakia and Hungary AUSTRIA: +8.1% Austria 35% +8.1% 36 % • Solid vo
Slide 21: Parcel & Logistics Division: Key Income Statement Indicators
PARCEL & LOGISTICS DIVISION: KEY INCOME STATEMENT INDICATORS Change EUR m Q1 20141 Q1 2015 % abs. Revenue 219.5 224.4 2.2% 4.9 Revenue increase of 2.2% in Q1 2015 • Premium 164.9 167.2 1.4% 2.3 • Standard 45.9 48.4 5.5% 2.5 • Other Parcel Services 8.7 8.8 0.9% 0.1 Total revenue2 221.8 226.4 2.1% 4.6
Slide 22: Solid Balance Sheet Structure
SOLID BALANCE SHEET STRUCTURE BALANCE SHEET AS AT MARCH 31, 2015 EUR m 1,708.2 1,708.2 Other financial liabilities 16.8 Cash and cash Financial liabilities of only 419.1 Liabilities/ 393.9 equivalents/securities EUR 17m Other Financial assets/ 123.1 Investment property Provisions largely non-current
Slide 23: Robust Cash Flow
ROBUST CASH FLOW CASH FLOW DEVELOPMENT EUR m Sale of former corporate headquarters leads to positive cash flow effect of plus EUR 60m Increase in operating cash flow e.g. due to lower income tax payments and working capital changes +60.8 104.6 -1.3 93.3 82.8 -10.0 59.6 -15.8 Gross cash Cash flow CAP
Slide 24: 4. Outlook 2015
1. Highlights and Overview 2. Strategy Implementation 3. Group Results Q1 2015 4. OUTLOOK 2015 INVESTOR PRESENTATION I Investor Relations I Vienna, May 2015 24
Slide 25: Outlook Confirmed for 2015
OUTLOOK CONFIRMED FOR 2015 • Ongoing drop in addressed mail volume due to electronic substitution; 3-5% decline expected in line with international trends Market • Differentiated volume development in direct mail: pressure on retail stores and environment mail order business; positive impetus from l
Slide 26: Contact
CONTACT Austrian Post Financial calendar 2015 Investor Relations May 7, 2015 Interim report Q1 2015 Haidingergasse 1, 1030 Vienna Aug. 6, 2015 Half-year financial report 2015 Website: www.post.at/ir Nov. 12, 2015 Interim report Q1-3 2015 E-mail: investor@post.at Phone: +43 57767-30401 Fax: +43 57767
Slide 27: COUNTS; RELY ON
COUNTS; RELY ON STRIAN POST.