Slide 1: Investor Presentation Q1 2019
AUSTRIAN POST Investor Presentation Q1 2019 Walter Oblin, CFO Vienna, May 16, 2019 INVESTOR PRESENTATION Investor Relations Vienna, May 16, 2019
Slide 2: Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results Q1 2019 4. Outlook 2019 INVESTOR PRESENTATION Investor Relations Vienna, May 16, 2019 2
Slide 3: Highlights Q1 2019
HIGHLIGHTS Q1 2019 Outlook 2019 – Still aiming for stability in revenue and operating Investment programme earnings in the core 2018-2021 business – Completion of first parcel Earnings distribution centre – EBIT rise of 1.3% to (Hagenbrunn) in the EUR 57.4m due to solid summer of 2019 Revenue revenu
Slide 4: Slight revenue improvement thanks to robust mail business and parcel growth
SLIGHT REVENUE IMPROVEMENT THANKS TO ROBUST MAIL BUSINESS AND PARCEL GROWTH Revenue development Group: +0.4% EUR m – Slight revenue increase due to mail decline and good +0.4% parcel growth 490.6 492.5 Parcel & Logistics: +6.7% Parcel & – Ongoing positive e-commerce trend, increase in 132.2 +6.7% 14
Slide 5: Improved operating earnings (EBIT)
IMPROVED OPERATING EARNINGS (EBIT) EBIT development EUR m +1.3% Mail & Branch Network: 56.7 57.4 – EBIT increase of EUR 1.7m in Q1 2019 +1.7 -1.2 +0.2 – Drop in revenue compensated by high cost discipline Parcel & Logistics: – EBIT negatively impacted due to additional costs to avoid capacity bottle
Slide 6: Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results Q1 2019 4. Outlook 2019 INVESTOR PRESENTATION Investor Relations Vienna, May 16, 2019 6
Slide 7: Clear strategic priorities
CLEAR STRATEGIC PRIORITIES 01 Defending market leadership in the 02 Profitable growth in selected markets 03 Enhancing efficiency and flexibilisation of 04 Customer orientation and core business the cost structure innovation Safeguarding market Focusing and performance Expansion of logistics Promoti
Slide 8: Letter mail in Austria
01 LETTER MAIL IN AUSTRIA Letter Mail/Addressed Media Post (millions of items) Current Letter Mail trends Q1 2019 – Basic trend of electronic substitution continues – Volume decline due to e-substitution (operating decline Letter Mail about 3.5%, annual expectation about 5%) – New product structure
Slide 9: Direct mail in Austria
01 DIRECT MAIL IN AUSTRIA Direct Mail/Unaddressed Media Post (millions of items) Current Direct Mail/Media Post trends Q1 2019 – 2018 direct mail volumes back to 2016 level after – Volume decline in Austria about 4% positive special effects in 2017 – Structural decline in addressed volumes (due to G
Slide 10: Parcel & Logistics business in Austria
01 PARCEL & LOGISTICS BUSINESS IN AUSTRIA Market development Q1 2019 Parcel volumes of Austrian Post – Austrian parcel market shows good growth (millions of parcels) ~150 in the high single-digit range +115% – Intense competition, ongoing own delivery by a large customer in Vienna 108 – High demands
Slide 11: Austrian Post as a delivery partner of Deutsche Post DHL Group
01 AUSTRIAN POST AS A DELIVERY PARTNER OF DEUTSCHE POST DHL GROUP – Austrian Post will become a delivery partner of the Deutsche Post DHL Group in Austria – Talks initiated with competition authorities in Austria; decision expected by mid-2019 – Austrian Post plans to take about 200 employees and se
Slide 12: Growth in selected markets
02 GROWTH IN SELECTED MARKETS Growth focus on Parcel & Logistics GERMANY CEE/SEE Austrian Post International Focus on profitable parcel growth – Intense competition in the international mail – Positive revenue development business, revenue of EUR 12.8m in Q1 2019 – Strong competition and price press
Slide 13: Austrian Post branch network: 1,800 postal service points
02 AUSTRIAN POST BRANCH NETWORK: 1,800 POSTAL SERVICE POINTS TO PROVIDE A FOCUSED SERVICE OFFERING 1. Postal Products 2. Telecommunications and retail goods 3. Financial Services – The objective is for Austrian Post to continue offering financial services after 2020 Postal Service Points of Austrian
Slide 14: Capacity drive 2018-2021
03 CAPACITY DRIVE 2018-2021 HAGENBRUNN PARCEL CENTRE Increasing volume forecasts lead to an (LOWER AUSTRIA) accelerated investment programme 2019: Growth CAPEX of more CAPEX (EUR m)1 than EUR 50m planned; + properties - about EUR 25m + sorting technology due to DHL- 139 cooperation about EUR 15m >50
Slide 15: Expansion of logistic infrastructure in Austria
03 EXPANSION OF LOGISTIC INFRASTRUCTURE IN AUSTRIA Existing sites New sites/expansion PARCEL CENTRE HAGENBRUNN VIENNA UPPER AUSTRIA LOWER AUSTRIA PARCEL CENTRE PARCEL CENTRE VORARLBERG VIENNA-SOUTH STYRIA SALZBURG TYROL VORARL- BERG CARINTHIA PARCEL CENTRE INVESTOR PRESENTATION Investor Relations Vi
Slide 16: Staff structure in Austria
03 STAFF STRUCTURE IN AUSTRIA Full-time equivalents in the Austrian core business (average for the period) 21,926 21,003 490 20,217 20,064 +63 FTE Change Q1 2018/Q1 2019 19,417 -821 Civil servants 1,891 18,790 18,233 17,692 2,490 17,463 17,299 17,361 -260 Employees old CWA 3,350 3,858 +1,143 Employe
Slide 17: Self-service as a competitive advantage
04 SELF-SERVICE AS A COMPETITIVE ADVANTAGE Steady increase in usage 37,612 pick-up boxes 51,274 boxes at pick-up stations 416 drop-off boxes Q1 2019: >641,000 items Q1 2019: >920,000 items Q1 2019: >1.4m items Jun.12 Mar. 19 Nov.13 Mar. 19 Jan. 12 Mar. 19 Number of self-solutions Items/month INVESTO
Slide 18: Group Results Q1 2019
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS Q1 2019 4. Outlook 2019 INVESTOR PRESENTATION Investor Relations Vienna, May 16, 2019 18
Slide 19: Financial indicators at a glance
FINANCIAL INDICATORS AT A GLANCE Q1 2018 Q1 2019 Revenue (EUR m) 490.6 492.5 Revenue slightly above prior-year level (+0.4%) Higher margin due to IFRS 16 (shift from expenses to EBITDA margin (%) 15.6 17.2 depreciation/amortisation) EBIT margin (%) 11.6 11.7 Stable profitability Earnings/share (EUR
Slide 20: Key income statement indicators
KEY INCOME STATEMENT INDICATORS EUR m IFRS 16 Q1 2018 Q1 2019 % ∆ effects Revenue increase implying mail Revenue 490.6 492.5 0.4% 1.9 - decline and good parcel growth Other operating income 34.6 21.0 -39.3% -13.6 - Q1 2018: EUR 20m one-off Raw materials, consumables and services -103.9 -110.3 -6.1%
Slide 21: Mail & Branch Network division: revenue development in Q1 19
MAIL & BRANCH NETWORK DIVISION: REVENUE DEVELOPMENT IN Q1 2019 Letter Mail & Mail Solutions (EUR m) Direct Mail/Media Post (EUR m) – Operating volume decline Letter Mail in Austria of – Volume decline in Austria of about 4% about 3,5%, annual expectation of about 5% – Revenue decline for Addressed D
Slide 22: Mail & Branch Network: income statement
MAIL & BRANCH NETWORK: INCOME STATEMENT EUR m Q1 2018 Q1 2019 % ∆ Revenue 359.6 354.7 -1.4% -4.9 Positive effects from elections • Letter Mail & Mail-Solutions 202.2 208.2 2.9% 6.0 and new product/rate structure • Direct Mail 100.0 94.0 -6.0% -6.0 Uncertainty due to GDPR and • Media Post 32.2 30.7 -
Slide 23: Parcel & Logistics division: revenue development in Q1 2019
PARCEL & LOGISTICS DIVISION: REVENUE DEVELOPMENT IN Q1 2019 Revenue development EUR m +6.7% Parcel & Logistics Division: +6.7% 141.0 – E-commerce trend as the basis for further revenue 132.2 growth 27.6 CEE/SEE 25.4 +8.7% South East/Eastern Europe: +8.7% – Positive revenue development in Slovakia, H
Slide 24: Parcel & Logistics division: income statement
PARCEL & LOGISTICS DIVISION: INCOME STATEMENT EUR m Q1 2018 Q1 2019 % ∆ Revenue 132.2 141.0 6.7% 8.8 Revenue growth despite own delivery by a large customer in • Premium 61.9 68.9 11.2% 6.9 Vienna • Standard 57.0 58.0 1.9% 1.1 • Other Parcel Services 13.3 14.1 6.1% 0.8 Revenue intra-Group 1.3 1.1 -1
Slide 25: Change in balance sheet structure due to IFRS 16
CHANGE IN BALANCE SHEET STRUCTURE DUE TO IFRS 16 Balance sheet as at March 31, 2019 EUR m ASSETS 1,980.1 EQUITY & LIABILITIES 1,980.1 Liquid financial 273.5 IFRS 16: Lease liabilities of 1,681.2 404.0 resources of 1,681.2 EUR 270m Other financial EUR 404m 10.3 liabilities Cash and cash Structure of
Slide 26: Robust cash flow in Q1 2019
ROBUST CASH FLOW IN Q1 2019 Cash flow development Operating free cash flow of EUR 60.8m EUR m – Financial service fee of EUR 7.7m for Q1 2019 already included in cash flow of 2018 – IFRS 16-effect: Expense of EUR 8.1m included in cash flow from financing activities 72.3 60.8 -9.9 -1.6 49.0 -9.8 -2.1
Slide 27: Outlook 2019
1. Highlights and Overview 2. Strategy Implementation 3. Group Results Q1 2019 4. OUTLOOK 2019 INVESTOR PRESENTATION Investor Relations Vienna, May 16, 2019 27
Slide 28: Outlook 2019
OUTLOOK 2019 Market environment – Up to 5% annual decline in Addressed Letter Mail volumes – Structural decrease in Direct Mail volumes, also affected by data protection regulations – Growth in the parcel market against the backdrop of intense competition and demand for high quality; ongoing own del
Slide 29: Contact
CONTACT Austrian Post Financial calendar 2019 Investor Relations August 9, 2019 Half-Year Financial Report 2019 Rochusplatz 1, 1030 Vienna November 14, 2019 Interim Report Q1-3 2019 Website: post.at/ir E-mail: investor@post.at Telephone: +43 57767-30401 Disclaimer This presentation contains forward-