Slide 1: Austrian Post in the 2013 Financial Year
AUSTRIAN POST IN THE 2013 FINANCIAL YEAR INVESTOR PRESENTATION Georg Pölzl/CEO, Walter Oblin/CFO Vienna, March 13, 2014
Slide 2: Agenda
1. Highlights and overview 2. Strategy implementation 3. Group results in 2013 4. Outlook 2014 INVESTOR PRESENTATION 2013 I Investor Relations I Vienna, March 13, 2014 2
Slide 3: Highlights 2013
HIGHLIGHTS 2013 Positive revenue effects in the mail business in Austria Market 1 Ongoing robust growth in the Austrian parcel market environment Tough competition in the international parcel business Revenue increase of 0.8% (excl. Benelux) 2 Revenue Slight growth in the mail and parcel s
Slide 4: Austrian Post's Sustainably Solid Development Continues into 2013
AUSTRIAN POST‘S SUSTAINABLY SOLID DEVELOPMENT CONTINUES INTO 2013 1 1 REVENUE in EUR m 2 EBIT in EUR m avg.+1,6% 2013 avg. 5.7% 2013 +0.8% +2.0% 2,219 2,211 2,304 2,349 2,367 182 186 157 168 149 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 1) Figures excl. Benelux subsidiaries and meiller Group
Slide 5: Slightly Improved Revenue in 2013
SLIGHTLY IMPROVED REVENUE IN 2013 Revenue development EUR m Group revenue: Revenue +0.8 % Rise of 0.8% in 2013 excl. Benelux excl. Benelux (Q4 2013: -1.7%) 2,366.1 2,366.8 Mail & Branch Network: - Revenue growth of 0.2% in 2013 thanks to acquisitions and positive revenue effects of elections in Q1-3
Slide 6: EBIT Rise of 2.0% Driven by Special Effects
EBIT RISE OF 2.0% DRIVEN BY SPECIAL EFFECTS Earnings development EUR m MAIL & BRANCH NETWORK: EUR +9.3m 2012 182.4 - Positive revenue effects in election year 2013 - Prior-year figure includes impairment loss of EUR 9.6m for MEILLERGHP +9.3 PARCEL & LOGISTICS: EUR -30.2m - Impairment loss of EUR 27m
Slide 7: Agenda
1. Highlights and overview 2. Strategy implementation 3. Group results in 2013 4. Outlook 2014 INVESTOR PRESENTATION 2013 I Investor Relations I Vienna, March 13, 2014 7
Slide 8: Resolute Implementation of Strategy
RESOLUTE IMPLEMENTATION OF STRATEGY 1. 2. DEFENDING MARKET GROWTH IN LEADERSHIP IN THE SELECTED CORE BUSINESS MARKETS 3. 4. ENHANCING EFFICIENCY CUSTOMER AND FLEXIBILISATION OF ORIENTATION AND THE COST STRUCTURE INNOVATION INVESTOR PRESENTATION 2013 I Investor Relations I March 13, 2014 8
Slide 9: Solid Development of the Domestic Mail Business
SOLID DEVELOPMENT OF THE 1. DOMESTIC MAIL BUSINESS Moderate volume decline for addressed mail Broad customer base in the direct mail items in Austria segment in Austria Addressed mail volumes 2008 – 2012 (CAGR) Direct Mail revenue by customer group (adressed/unadressed) Revenue EUR 360m = 3.2 bn mai
Slide 10: Strong Parcel Growth with Private and Business Customers
STRONG PARCEL GROWTH WITH PRIVATE 1. AND BUSINESS CUSTOMERS Ongoing increase in market share in the E-commerce drives growth in private business customer segment customer parcels segment B2B market share of Austrian Post Market share C2C/B2C Austrian Post and competitors 25% Competitors Austrian Pos
Slide 11: Aras Kargo – Growth Market of Turkey
2. ARAS KARGO – GROWTH MARKET OF TURKEY Positive development of new investment Entry in 2013: 25% interest with call option for an Aras Kargo also in 2013 additional 50% in 2016 Revenue (TRY m) Integration and know-how transfer Focus on profitability and growth avg.+15% Objective: market lea
Slide 12: Performance Improvement in Germany
2. PERFORMANCE IMPROVEMENT IN GERMANY Resolute continuation of earnings Focus on and exploitation of market improvement programme opportunities in the pharmaceutical segment Efficiency enhancement programme focusing on Concentration on the growing pharmaceutical and optimizing the operational co
Slide 13: Investments for the Future
3. INVESTMENTS FOR THE FUTURE Investment programme of approx. EUR 300m in the period 2012-2014: Increased investments in the future to further enhance efficiency and customer orientation Replacement investments in the vehicle fleet Capacity expansion in Austria CAPEX 2013: EUR 96.4m Expansion of ele
Slide 14: Structural Transformation in the Branch Network
STRUCTURAL TRANSFORMATION IN THE 3. BRANCH NETWORK Structural change in the branch network to improve service and the cost structure Postal partners Company-operated post offices Statutory minimum of 1,650 approx. 2,000 postal service points 1,880 1,894 1,552 418 approx. Change since 2009: 1,258 1,3
Slide 15: Optimisation in the Personnel Mix
3. OPTIMISATION IN THE PERSONNEL MIX 20% of employees already working under the new collective wage agreement Full-time equivalents in the core business in Austria (average for the period) New collective wage agree- ment since 2009 21,700 Old collective wage agreement 20,786 20,010 Civil servants 19
Slide 16: Innovative Solutions to Enhance Customer Convenience
INNOVATIVE SOLUTIONS TO ENHANCE 4. CUSTOMER CONVENIENCE Expansion of self-servicable Targets 2014 solutions up to end of 2013 Track & Trace Self-service zones (Post Drop-Off Box and SMS/E-Mail notification franking machines) Post Pick-Up Box New notification with barcode Parcel stamps Pick-up statio
Slide 17: Agenda
1. Highlights and overview 2. Strategy implementation 3. Group results in 2013 4. Outlook 2014 INVESTOR PRESENTATION 2013 I Investor Relations I Vienna, March 13, 2014 17
Slide 18: Overview of Financial Indicators in 2013
OVERVIEW OF FINANCIAL INDICATORS IN 2013 2012 2013 Slight improvement in Group revenue 1 Revenue 2,366.1 2,366.8 (+0.8% excl. Benelux) EBITDA positively impacted by special effects in 2 EBITDA margin 11.5% 12.9% non-operational staff costs 3 EBIT margin 7.7% 7.9% Further increase in profitability 4
Slide 19: Balance Sheet and Valuation Issues in 2013
BALANCE SHEET AND VALUATION ISSUES IN 2013 1 TRANS-O-FLEX Impairment on goodwill of the trans-o-flex Group of EUR 27.0m (already in Q3), current goodwill of EUR 87.6m as of December 31, 2013 Write-downs to the amount of EUR 7.1m (thereof EUR 5.1 Mio in Q3) primarily in relation to receivables of
Slide 20: Key Income Statement Indicators
KEY INCOME STATEMENT INDICATORS Change EUR m 2012 2013 % abs. Q4 20121 Q4 2013 Revenue 2,366.1 2,366.8 0.0% 0.7 643.2 632.6 Revenue excl. Benelux 2,348.9 2,366.8 0.8% 17.9 643.2 632.6 Revenue up 0.8% Raw materials and services used -766.9 -753.3 -1.8% -13.6 -203.9 -196.7 Staff costs -1,091.4 -1,073.
Slide 21: Mail & Branch Network Division: Volume Development in Austria
MAIL & BRANCH NETWORK DIVISION: VOLUME DEVELOPMENT IN AUSTRIA Letter Mail (mail items in millions) Direct Mail/Media Post1 (mail items in millions) Steady decline due to electronic substitution Volatile development of advertising expenditures (underlying trend in 2013 of about -2,5%) Structura
Slide 22: Mail & Branch Network Division: Revenue Trends in 2013
MAIL & BRANCH NETWORK DIVISION: REVENUE TRENDS IN 2013 Letter Mail & Mail Solutions (EUR m) Direct Mail/Media Post (EUR m) Revenue development impacted by positive revenue Positive revenue effects related to elections only in effects (acquisitions, elections, mail solutions) the first three quar
Slide 23: Mail & Branch Network Division: Key Income Statement Indicators
MAIL & BRANCH NETWORK DIVISION: KEY INCOME STATEMENT INDICATORS Change EUR m 2012 2013 % abs. Q4 20121 Q4 2013 Revenue (external sales) 1,508.2 1,510.8 0.2% 2.6 417.0 403.1 Revenue growth Letter Mail & Mail Solutions of 0.2% due to 784.6 793.7 1.2% 9.1 212.6 212.8 acquisitions and Direct Mail 44
Slide 24: Parcel & Logistics Division: Volume Development
PARCEL & LOGISTICS DIVISION: VOLUME DEVELOPMENT Austria (parcels in millions) International (parcels in millions)1 Steady growth in private parcel customers Focus on qualitative growth in Germany (smaller Increased market share for business customers parcel sizes) Positive volume development
Slide 25: Parcel & Logistics Division: Revenue Trends in 2013
PARCEL & LOGISTICS DIVISION: REVENUE TRENDS IN 2013 Revenue (EUR m) Regional mix in % Parcel & Logistics revenue: +2.0% 2.0% increase in 2013 excl. Benelux 840.91 857.3 (Q4 2013: +1.7%) 8% South East and Eastern Europe: +6.2% CEE 8% +6.2% Solid growth but continuing price pressure Austria 33% +7.8
Slide 26: Parcel & Logistics Division: Key Income Statement Indicators
PARCEL & LOGISTICS DIVISION: KEY INCOME STATEMENT INDICATORS Change EUR m 2012 2013 % abs. Q4 20121 Q4 2013 Revenue (external sales) 858.1 857.3 -0.1% -0.8 226.1 229.9 Revenue excl. Benelux 840.9 857.3 2.0% 16.5 226.1 229.9 Revenue up 2.0% Premium Parcel 650.8 643.7 -1.1% -7.1 167.0 169.6 Standa
Slide 27: Balance Sheet Structure Remains Solid
BALANCE SHEET STRUCTURE REMAINS SOLID Balance sheet as at Dec. 31, 2013 (EUR m) Liquid financial resources of EUR 305m after payment of about EUR 50m for Aras Kargo Financial liabilities of only EUR 21m 1,642 1,642 Financial liabilities. 21.0 Cash and cash equivalents/ Securities 305.2 Liabilities/
Slide 28: Robust Cash Flow
ROBUST CASH FLOW EUR m Cash flow from New logistics centre in Proposal to Annual operating activities Upper Austria (CAPEX of General Meeting of slightly higher than EUR 23.4m) EUR 1.90/share in 2012 299.4 276.6 250.4 -49.0 153.9 128.4 -96.4 -0.2 20121 2013 Changes in Cash flow CAPEX Other 2013 2013
Slide 29: Dividend Policy
DIVIDEND POLICY Dividends Attractive dividend policy will be maintained Special dividends Dividend proposal to the Annual General Meeting: EUR 1.90 per share Dividend yield as at Dec. 31, 2013: 5.5% Dividend policy: distribution of at least 75% of 1.901 1.80 the Group net profit 1.70 1.60 Di
Slide 30: Clear Capital Market Positioning Confirmed in 2013
CLEAR CAPITAL MARKET POSITIONING CONFIRMED IN 2013 SOLID BUSINESS Slight rise in revenue of 0.8% (excl. Benelux) and 1 MODEL sustainable profitability with rise in operating earnings STRONG BALANCE Stable balance sheet structure featuring equity ratio of 2 SHEET AND 42.6% and solid cash flow for fut
Slide 31: Agenda
1. Highlights and overview 2. Strategy implementation 3. Group results in 2013 4. Outlook 2014 INVESTOR PRESENTATION 2013 I Investor Relations I Vienna, March 13, 2014 31
Slide 32: Outlook 2014
OUTLOOK 2014 Letter mail volumes impacted by e-substitution of business clients and now also official government mail: decline of 3-5% expected Market Volatile advertising market with risk of losing customers due to market environment consolidation Growth in private parcel customers, depending
Slide 33: Contact
CONTACT Austrian Post Financial calendar 2014 Investor Relations March 13, 2014 Annual results 2013 Haidingergasse 1, 1030 Vienna April 24, 2014 Annual General Meeting 2014 Website: www.post.at/ir May 8, 2014 Dividend payment date E-mail: investor@post.at May 8, 2014 Interim report Q1 2014 Phone: +4
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