Slide 1: Austrian Post Investor Presentation FY 2016
AUSTRIAN POST INVESTOR PRESENTATION FY 2016 Georg Pölzl/CEO, Walter Oblin/CFO Vienna, March 9, 2017
Slide 2: Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results 2016 4. Outlook 2017 INVESTOR PRESENTATION | Investor Relations | Vienna, March 9, 2017 2
Slide 3: 2016 at a Glance
2016 AT A GLANCE REVENUE AUSTRIAN MAIL MARKET • Comparative revenue stable as predicted: Ongoing substitution of addressed letter mail volumes by electronic Mail: -1.6%; Parcel & Logistics +3.9% media • Reported revenue down from EUR 2,401.9m to EUR 2,030.5m due to sale of trans-o-flex as at April 8
Slide 4: Stable Revenue in the Core Business
STABLE REVENUE IN THE CORE BUSINESS REVENUE DEVELOPMENT EUR m 2,401.9 GROUP: • Comparative revenue excl. trans-o-flex down from -0.4% EUR 1,903.9m in 2015 to EUR 1,895.6m in 2016 498.1 2,030.5 1,903.9 1,895.6 (-0.4% or -EUR 8.2m) 134.8 • Reported revenue negatively impacted by sale of 402.1 417.6 tr
Slide 5: Improved Operating EBIT
IMPROVED OPERATING EBIT EBIT DEVELOPMENT EUR m +2.2% 198.0 202.3 MAIL & BRANCH NETWORK: operating • Resilient earnings on the back of high cost -3.8 +14.7 -16.7 +10.0 discipline PARCEL & LOGISTICS: • Operating EBIT improved from EUR 20.4m to EUR 35.2m following sale of trans-o-flex • Earnings negati
Slide 6: Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results 2016 4. Outlook 2017 INVESTOR PRESENTATION | Investor Relations | Vienna, March 9, 2017 6
Slide 7: Clear Strategic Priorities
CLEAR STRATEGIC PRIORITIES DEFENDING MARKET LEADERSHIP IN PROFITABLE GROWTH IN SELECTED 1. THE CORE BUSINESS 2. 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: Mail Volume Development in Austria
1 MAIL VOLUME DEVELOPMENT IN AUSTRIA LETTER MAIL (items in millions) DIRECT MAIL/MEDIA POST (items in millions) • Continuation of basic trend of e-substitution • Subdued economic situation with pressure on advertising market; bankruptcies (Zielpunkt, Baumax) • Diverging advertising activities of ind
Slide 9: Austrian Parcel Market Environment
1 AUSTRIAN PARCEL MARKET ENVIRONMENT VOLUME DEVELOPMENT ON THE ENTIRE MARKET SHARES AUSTRIAN MARKET (millions of parcels) BY VOLUME IN 2016 Reported data contained in a Kreutzer Fischer & Partner study +4.1% +15.7% B2B 181.9 (89m parcels) 32% 151.1 157.3 68% 88.9 +0.8% 88.2 B2B 86.7 +1.7% Austrian P
Slide 10: Parcel & Logistics Business in Austria
1 PARCEL & LOGISTICS BUSINESS IN AUSTRIA AUSTRIAN POST PARCEL VOLUMES 2016: Logistics advantage due to joint mail (millions of parcels) and parcel delivery by mail carriers 2017: Greater synergies – even more parcels Ø +5.7% and packets delivered by mail carriers +1.2% 80 81 74 LETTERS 70 65 PACKETS
Slide 11: Growth in Selected Markets
2 GROWTH IN SELECTED MARKETS GROWTH FOCUS ON PARCEL & LOGISTICS GERMANY CEE/SEE Austrian Post International: Parcel subsidiaries • Growth of the international mail (SK/H/HR/SRB/BIH/MNE/BG): business to EUR 46.2m • Ongoing positive volume development (+15.1%) (+8.0%) and strong export growth • Intens
Slide 12: 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 -541 FTE 2015/2016: 20,217 20,064 1,891 19,417 – 398 Civil servants 18,790 2,490 18,233 17,692 3,350 – 494 Old CWA 3,858 9,397 4,374 + 352 New CWA 4,775 7,883 5,127 –
Slide 13: New Customer Solutions Are Well Received
4 NEW CUSTOMER SOLUTIONS ARE WELL RECEIVED INNOVATIVE 24/7 SELF-SERVICE SOLUTIONS 18,000 pick-up boxes 260 pick-up stations 335 drop-off boxes June 12 Dec. 16 Nov.13 Dec. 16 Jan. 12 Dec. 16 Pick-up boxes Items per month Pick-up stations Items per month Drop-off stations Items per month INVESTOR PRES
Slide 14: Group Results 2016
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS 2016 4. Outlook 2017 INVESTOR PRESENTATION | Investor Relations | Vienna, March 9, 2017 14
Slide 15: Financial Indicators 2016 at a Glance
FINANCIAL INDICATORS 2016 AT A GLANCE 2015 2016 Revenue below the previous year due to Revenue (EUR m) 2,401.9 2,030.5 deconsolidation of trans-o-flex Revenue excl. 1,903.9 1,895.6 Stable revenue (-0.4%) in the core business trans-o-flex (EUR m) EBITDA margin 12.6% 13.6% Improved EBITDA margin of 13
Slide 16: Main Accounting and Earnings Effects 2016
MAIN ACCOUNTING AND EARNINGS EFFECTS 2016 Earnings effect ARAS KARGO Change in reporting for stake held in Aras Kargo - EUR 16.7m (from at equity to a financial asset) and the related realisation of currency translation reserves at profit and loss STAFF COSTS, PROPERTIES Positive effects in staff co
Slide 17: Key Income Statement Indicators
KEY INCOME STATEMENT INDICATORS EUR m 2015 2016 % ∆ Q4 2015 Q4 2016 Disposal of trans- Revenue 2,401.9 2,030.5 -15.5% -371.5 655.4 520.1 o-flex: EUR 498.1m in 2015 vs. Other operating income 99.2 70.1 -29.3% -29.1 48.8 20.0 EUR 134.8m in 2016 Raw materials, consumables and -749.6 -495.2 33.9% 254.4
Slide 18: Mail & Branch Network Division: Revenue Development in 2016
MAIL & BRANCH NETWORK DIVISION: REVENUE DEVELOPMENT IN 2016 LETTER MAIL & MAIL SOLUTIONS (EUR m) DIRECT MAIL/MEDIA POST (EUR m) • Decline in letter mail volume of about 5% • Diverging development of advertising activities on the part of individual customer groups; bankruptcies • Positive revenue con
Slide 19: Mail & Branch Network Division: Income Statement
MAIL & BRANCH NETWORK DIVISION: INCOME STATEMENT EUR m 2015 2016 % ∆ Q4 2015 Q4 2016 Revenue held at a solid level despite Revenue 1,501.7 1,478.0 -1.6% -23.7 412.2 399.6 negative volume • Letter Mail & Mail-Solutions 808.4 801.3 -0.9% -7.1 221.0 216.8 development • Direct Mail 428.7 416.7 -2.8% -12
Slide 20: Parcel & Logistics Division: Revenue Development 2016
PARCEL & LOGISTICS DIVISION: REVENUE DEVELOPMENT 2016 REVENUE (EUR m) 900.2 PARCEL & LOGISTICS DIVISION: • Comparative revenue in 2016 up 3.9% following sale of trans-o-flex (Q4: +4.8%) Germany1 498.1 GERMANY: 552.5 • Sale of former subsidiary trans-o-flex as at April 8, 2016 (EUR 498.1m in 2015; EU
Slide 21: Parcel & Logistics Division: Income Statement
PARCEL & LOGISTICS DIVISION: INCOME STATEMENT EUR m 2015 2016 % ∆ Q4 2015 Q4 2016 Comparative revenue up 3.9%, Revenue excl. trans-o-flex 402.1 417.6 3.9% 15.5 114.9 120.5 positive Revenue 900.2 552.5 -38.6% -347.7 243.2 120.5 development despite intense • Premium 668.4 337.8 -49.5% -330.7 178.3 60.
Slide 22: Solid Balance Sheet Structure
SOLID BALANCE SHEET STRUCTURE BALANCE SHEET AS AT DECEMBER 31, 2016 Financial liabilities of only EUR m EUR 6m 1,541.8 1,541.8 Other financial liabilities 5.6 Cash and cash equivalents/ Structure of provisions Securities1 338.6 Liabilities/ 361.9 EUR m Other Liquid financial → No pension obligations
Slide 23: Robust Cash Flow 2016
ROBUST CASH FLOW 2016 CASH FLOW DEVELOPMENT EUR m Cash flow from operating activities above prior-year level 223.6 Operating free cash flow exceeds dividend level 156.8 -69.9 +3.1 118.5 -33.5 -4.8 Cash flow CAPEX Other Operating CAPEX Acquisitions/ Free cash flow from operating excl. new free CF new
Slide 24: Clear Capital Market Positioning Confirmed Once Again in 2016
CLEAR CAPITAL MARKET POSITIONING CONFIRMED ONCE AGAIN IN 2016 BUSINESS MODEL WITH A STRONG BALANCE SHEET & DEFENSIVE CHARACTER SOLID CASH FLOW 183 135 Revenue of 172 523 531 557 527 505 500 498 156 151 154 159 161 157 Operating free trans-o-flex CF before acq./ 1,834 1,820 1,791 1,839 1,862 1,864 1,
Slide 25: Dividend Policy
DIVIDEND POLICY ATTRACTIVE AND PREDICTABLE DIVIDEND POLICY • Dividend proposal to the Annual General Meeting: EUR 2.00/share 1.95 1.95 2.00 1.90 1.80 • Dividend yield as at Dec. 31, 2016: 1.70 1.60 6.3% (share price of EUR 31.89) 1.50 • Unchanged dividend policy: distribution of at least 75% of the
Slide 26: Outlook 2017
1. Highlights and Overview 2. Strategy Implementation 3. Group Results 2016 4. OUTLOOK 2017 INVESTOR PRESENTATION | Investor Relations | Vienna, March 9, 2017 26
Slide 27: Top Priorities 2017/2018
TOP PRIORITIES 2017/2018 MAIL • Best logistics performance in Austria for letters and direct mail items as well as e-commerce orders • Promotion of international and transnational shipment volumes • Cost discipline in logistics and delivery PARCEL • Further strengthening of quality leadership on the
Slide 28: Investments and Project Development 2017
INVESTMENTS AND PROJECT DEVELOPMENT 2017 NEW CORPORATE SORTING CENTRE PROJECT DEVELOPMENT HEADQUARTERS VIENNA NORTH NEUTORGASSE • Completion Q3 2017 • New parcel logistics centre to • Development/expansion of an handle growing parcel volumes in historic property in Vienna’s 1st • 49,300 m² total flo
Slide 29: Outlook 2017
OUTLOOK 2017 • 5% volume decline p.a. of traditional letter mail due to electronic substitution Market expected environment • Advertising business with diverging development of product/customer groups • Growing parcel volumes due to online shopping, intensified competition • The objective is to main
Slide 30: Contact
CONTACT Austrian Post Financial calendar 2017 Investor Relations April 20, 2017 Annual General Meeting Haidingergasse 1, 1030 Vienna May 2/4, 2017 Ex-dividend day/Dividend payment date Website: www.post.at/ir May 12, 2017 Interim Report Q1 2017 E-mail: investor@post.at August 10, 2017 Half-Year Fina