Slide 1: Austrian Post Investor Presentation Q1-3 2017
AUSTRIAN POST INVESTOR PRESENTATION Q1-3 2017 Walter Oblin/CFO Vienna, November 15, 2017
Slide 2: 1. Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results Q1-3 2017 4. Outlook 2017/2018 INVESTOR PRESENTATION | Investor Relations | Vienna, November 15, 2017 2
Slide 3: Highlights Q1-3 2017
HIGHLIGHTS Q1-3 2017 Market: Basic trends continue: approx. 5% decline in letter volumes, dynamic parcel growth of more than 10% but tough competition Revenue: Q1-3 rise in Group revenue of 2.1% (excl. trans-o-flex), decline in mail revenue more than offset by parcel growth Earnings: EBIT increase o
Slide 4: Revenue increase driven by dynamic parcel growth
REVENUE INCREASE DRIVEN BY DYNAMIC PARCEL GROWTH REVENUE DEVELOPMENT EUR m GROUP: +2.1% (Q3: +2.7%) +2.1% • Q3 revenue increase due to higher contributions from 1,510.4 elections and stronger parcel growth 134.8 1,375.5 1,404.7 • One working day less in Q3 year-on-year 297.2 350.0 +17.8% PARCEL & LO
Slide 5: Improved operating results (EBIT)
IMPROVED OPERATING RESULTS (EBIT) EBIT DEVELOPMENT EUR m MAIL & BRANCH NETWORK: +3.3% • EBIT rise of EUR 2.4m in Q1-3 139.9 (+ EUR 0.7m in Q3) 135.5 +4.2 -2.2 • Earnings contributions from the positive price/mix +2.4 Q3 effect and the increased delivery of packets Q3 37.7 36.8 PARCEL & LOGISTICS: •
Slide 6: 2. Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results Q1-3 2017 4. Outlook 2017/2018 INVESTOR PRESENTATION | Investor Relations | Vienna, November 15, 2017 6
Slide 7: Clear strategic priorities
CLEAR STRATEGIC PRIORITIES DEFENDING MARKET LEADERSHIP IN PROFITABLE GROWTH 1. THE CORE BUSINESS 2. IN SELECTED MARKETS Safeguarding market position in a competitive Focusing on performance enhancement environment ENHANCING EFFICIENCY AND CUSTOMER ORIENTATION AND 3. OPTIMISING THE COST STRUCTURE 4.
Slide 8: Postal business: ongoing improvement of the product portfolio
POSTAL BUSINESS: ONGOING IMPROVEMENT 1 OF THE PRODUCT PORTFOLIO LETTER MAIL FREEDOM OF CHOICE FOR CUSTOMERS PRODUCT PORTFOLIO 2017 TARGETS 2018 Letter S Letter mail: Letter M E-LETTER Expanded offering in line PARCELS Packet S with international trends Packet M • Prio Product – Next day Parcel • Eco
Slide 9: Logistics with the best and most efficient service
LOGISTICS WITH THE BEST AND 1 MOST EFFICIENT SERVICE ALREADY THE MOST EFFICIENT AND HIGH QUALITY DELIVERY NETWORK IN AUSTRIA Mail carriers deliver more than 50% of all parcels TARGETS 2018 Mail logistics: LETTERS Further increase in mail and parcel delivery synergies PACKETS Parcel logistics: Signif
Slide 10: Branch network offering is steadily adapted to customer needs
BRANCH NETWORK OFFERING IS STEADILY 1 ADAPTED TO CUSTOMER NEEDS • Acceptance of parcels and letters • Comprehensive consulting for postal services POST PRODUCTS • 449 postal branches, 1,346 postal partners • 38m customer contacts p.a. in postal branches, postal partners with 19m customer contacts p.
Slide 11: Growth in selected markets
2 GROWTH IN SELECTED MARKETS GROWTH FOCUS ON PARCEL AND LOGISTICS GERMANY CEE/SEE Austrian Post International: Focus on profitable parcel business growth • Growth in the international mail • Ongoing positive organic volume development business to EUR 37m in revenue (+8.6%) and strong export growth (
Slide 12: Capacity and quality drive
3 CAPACITY AND QUALITY DRIVE PLANNED EXPANSION OF PARCEL LOGISTICS IN AUSTRIA TARGETS 2021: • Doubling of sorting capacity to 100,000 parcels/hour • Volume increase from 81m parcels in 2016 to 150m parcels, also in the case of partial own delivery by individual large-volume customers • “Next day” an
Slide 13: Staff structure in Austria
3 STAFF STRUCTURE IN AUSTRIA FULL-TIME EQUIVALENTS IN THE AUSTRIAN CORE BUSINESS (average for period) 21,926 Change Q1-3 2016/2017: 490 21,003 -352 FTE 20,217 20,064 – 554 Civil servants 19,417 1,891 18,790 2,490 18,233 17,806 – 415 Employees old CWA 3,350 17,454 3,858 + 617 Employees new CWA 9,397
Slide 14: Further expansion of customer self-service solutions
FURTHER EXPANSION OF CUSTOMER 4 SELF-SERVICE SOLUTIONS 21,860 PICK-UP BOXES 298 PICK-UP STATIONS 362 DROP-OFF BOXES Q1-3 2017: >1.2m items Q1-3 2017: >1.6m items Q1-3 2017: >2.8m items Number of self-service solutions Items/ month Jun.12 Sep.17 Nov.13 Sep.17 Nov.13 Sep.17 NUMBER OF CUSTOMER SELF-SER
Slide 15: 3. Group Results Q1-3 2017
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS Q1-3 2017 4. Outlook 2017/2018 INVESTOR PRESENTATION | Investor Relations | Vienna, November 15, 2017 15
Slide 16: Q1-3 2017 financial indicators at a glance
Q1-3 2017 FINANCIAL INDICATORS AT A GLANCE Q1-3 2016 Q1-3 2017 Revenue down YOY due to deconsolidation of Revenue (EUR m) 1,510.4 1,404.7 trans-o-flex Revenue excl. 1,375.5 1,404.7 Revenue up 2.1% on a like-for-like basis trans-o-flex (EUR m) EBITDA margin 12.7% 14.1% Improved EBITDA margin of 14.1%
Slide 17: Key income statement indicators
KEY INCOME STATEMENT INDICATORS EUR m Q1-3 Q1-3 Q3 Q3 2016 2017 % ∆ 2016 2017 Revenue increase Revenue excl. trans-o-flex 1,375.5 1,404.7 2.1% 29.1 439.3 451.0 due to strong parcel growth Revenue 1,510.4 1,404.7 -7.0% -105.7 439.3 451.0 Other operating income 50.1 40.4 -19.4% -9.7 14.0 12.7 Reduced
Slide 18: Mail & Branch Network division: Q1-3 2017 revenue development
MAIL & BRANCH NETWORK DIVISION: Q1-3 2017 REVENUE DEVELOPMENT LETTER MAIL & MAIL SOLUTIONS (EUR m) DIRECT MAIL/MEDIA POST (EUR m) • Mail volume decline of about 5% • Ongoing positive trend for stationary retail segment • Positive effect of new product structure, selective (mainly food retailers) pos
Slide 19: Mail & Branch Network division: income statement indicators
MAIL & BRANCH NETWORK DIVISION: INCOME STATEMENT INDICATORS EUR m Q1-3 Q1-3 Q3 Q3 2016 2017 % ∆ 2016 2017 Revenue 1,078.3 1,054.6 -2.2% -23.7 341.6 333.7 Positive election effect of EUR 13.5m • Letter Mail & Mail-Solutions 584.5 573.4 -1.9% -11.1 181.0 177.8 in Q1-3 2016, EUR 5.6m this year • Direct
Slide 20: Parcel & Logistics division: Q1-3 2017 revenue development
PARCEL & LOGISTICS DIVISION: Q1-3 2017 REVENUE DEVELOPMENT REVENUE (EUR m) 432.0 PARCEL & LOGISTICS DIVISION: • Q1-3 revenue after disposal of trans-o-flex up 17.8% 134.8 (excl. segment change M&BM Express +15.3%) +17.8% 350.0 Germany1 CEE/SEE: +22.8% (Q3: +23.3%) 297.2 70.1 • Segment change of M&BM
Slide 21: Parcel & Logistics division: income statement indicators
PARCEL & LOGISTICS DIVISION: INCOME STATEMENT INDICATORS EUR m Q1-3 Q1-3 2016 2017 % ∆ Q3 2016 Q3 2017 15.3% revenue Revenue excl. trans-o-flex 297.2 350.0 17.8% 52.8 97.7 117.2 increase excl. Revenue 432.0 350.0 -19.0% -82.0 97.7 117.2 segment change of M&BM Express • Premium 276.9 171.1 -38.2% -10
Slide 22: Solid balance sheet structure
SOLID BALANCE SHEET STRUCTURE BALANCE SHEET AS AT SEPTEMBER 30, 2017 Financial liabilities of only EUR m EUR 6m 1,495.1 1,495.1 Other financial liabilities 6.3 Cash and cash equivalents/ 320.3 securities1 Liabilities/Other 356.3 Structure of provisions Liquid financial EUR m Financial assets/ resour
Slide 23: Robust cash flow Q1-3 2017
ROBUST CASH FLOW Q1-3 2017 CASH FLOW DEVELOPMENT EUR m Cash flow from operating activities above Q1-3 2016 166.5 Improved operating free cash flow in Q1-3 2017 135.2 -30.7 -0.7 115.9 -18.8 -0.5 Cash flow from CAPEX excl. Other Operating free CAPEX new Acquisitions/ Free cash flow operating new corpo
Slide 24: Investments and project development in 2017
INVESTMENTS AND PROJECT DEVELOPMENT IN 2017 NEW CORPORATE HEADQUARTERS, VIENNA COTTON RESIDENCE, VIENNA • Opening of shopping centre on Sept. 20, 2017 • Development/expansion of historical property in Vienna by the end of 2018 (www.cotton-residence.at) • Move to new headquarters concluded by end of
Slide 25: 4. Outlook 2017/2018
1. Highlights and Overview 2. Strategy Implementation 3. Group Results Q1-3 2017 4. OUTLOOK 2017/2018 INVESTOR PRESENTATION | Investor Relations | Vienna, November 15, 2017 25
Slide 26: Outlook 2017 & 2018
OUTLOOK 2017 & 2018 2017 2018 • Approx. 5% letter mail decline due to electronic substitution Market • Unaddressed direct mail supported by economic activity environment • Rising parcel volumes >10% but tough competition • Slight revenue increase forecast for 2017 • Ongoing stable revenue developmen
Slide 27: Contact
CONTACT Austrian Post Financial calendar 2018 Investor Relations March 15, 2018 Annual results 2017 Haidingergasse 1, 1030 Vienna April 19, 2018 Annual General Meeting 2018 Website: www.post.at/ir April 30/May 3, 2018 Ex-day/dividend payment day E-mail: investor@post.at May 16, 2018 Interim report Q