Slide 1: Austrian Post Investor Presentation H1 2018
AUSTRIAN POST INVESTOR PRESENTATION H1 2018 Walter Oblin/CFO Vienna, August 10, 2018
Slide 2: 1. Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results H1 2018 4. Outlook 2018 INVESTOR PRESENTATION | Investor Relations | Vienna, August 10, 2018 2
Slide 3: Highlights H1 2018
HIGHLIGHTS H1 2018 Market: Continuation of basic trends in Austria; approx. 5% drop in addressed letter mail volumes; double-digit parcel growth against tough competition Revenue: Slight increase of 0.2% in H1 2018 Group revenue; decline in the Mail & Branch Network Division (-3.7%) offset by parcel
Slide 4: Slight improvement in revenue thanks to parcel growth
SLIGHT IMPROVEMENT IN REVENUE THANKS TO PARCEL GROWTH REVENUE DEVELOPMENT EUR m +0.2% 953.7 955.2 GROUP: +0.2% (Q2: -0.1%) 234.4 +12.1% 262.6 • Slight revenue increase due to strong parcel growth PARCEL & LOGISTICS: +12.1% (Q2: +11.2%) • Continuation of basic double-digit revenue growth trend in Aus
Slide 5: Improved operating earnings (EBIT)
IMPROVED OPERATING EARNINGS (EBIT) EBIT DEVELOPMENT EUR m MAIL & BRANCH NETWORK: +2.8% • EBIT decline of EUR 6.3m in H1 2018 (-EUR 5.8m in Q2) 105.1 • Already from Q1 2018: provisions for the 102.2 redimensioning of financial services (-EUR 21.8m), for the most part compensated by one-off income -6.
Slide 6: 2. Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results H1 2018 4. Outlook 2018 INVESTOR PRESENTATION | Investor Relations | Vienna, August 10, 2018 6
Slide 7: Clear strategic priorities
CLEAR STRATEGIC PRIORITIES DEFENDING MARKET LEADERSHIP IN PROFITABLE GROWTH IN SELECTED 1. THE CORE BUSINESS 2. MARKETS Safeguarding market position in a competitive Focusing and performance enhancement environment ENHANCING EFFICIENCY AND CUSTOMER ORIENTATION AND 3. OPTIMISING THE COST STRUCTURE 4.
Slide 8: Letter Mail & Direct Mail/Media Post in Austria
1 LETTER MAIL & DIRECT MAIL/MEDIA POST IN AUSTRIA LETTER MAIL DIRECT MAIL/MEDIA POST • New product structure as of July 1, 2018 is well • Perceptible uncertainty in addressed direct mail due received on the marketplace to General Data Protection Regulation → Post • Customer freedom of choice regardi
Slide 9: Parcel & Logistics Business in Austria
1 PARCEL & LOGISTICS BUSINESS IN AUSTRIA PARCEL VOLUMES OF AUSTRIAN POST MARKET SHARES BY VOLUME (millions of parcels) IN 2017 Total Austrian market ~150 (209m parcels) Ø +8% 97 80 81 47% 70 74 Volume growth forecast: Ø +8% to +11% 2013 2014 2015 2016 2017 2022 Business parcels Private customer parc
Slide 10: Branch Network: Stability in the core business, redimensioning of financial services
BRANCH NETWORK: STABILITY IN THE CORE 2 BUSINESS, REDIMENSIONING OF FINANCIAL SERVICES THREE PRODUCT GROUPS CONTINUE TO BE A FIXED 1,782 POSTAL SERVICE POINTS PART OF THE SERVICE OFFERING • 38m CUSTOMER CONTACTS p.a. POSTAL PRODUCTS in the branch offices • 19m CUSTOMER CONTACTS p.a. at postal partne
Slide 11: Growth in selected markets
2 GROWTH IN SELECTED MARKETS GROWTH FOCUS ON PARCEL & LOGISTICS GERMANY Austrian Post International: • Growth in the international letter mail business, revenue up 8% in H1 2018 CEE/SEE Focus on profitable parcel growth AEP (50% stake, consolidated at • Ongoing positive organic volume development eq
Slide 12: Capacity and quality drive
3 CAPACITY AND QUALITY DRIVE EXPANSION OF PARCEL LOGISTICS IN AUSTRIA H1 2018: • Maintenance CAPEX of EUR 38.2m and growth CAPEX of EUR 29.1m • Ground-breaking ceremony of Vienna North Parcel Centre on July 10, 2018, completion planned in summer 2019 CAPEX (EUR m)1 105 103 102 Growth CAPEX INVESTMEN
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 H1 2017 / H1 2018: 490 21,003 20,217 20,064 -718 Civil servants 1,891 19,417 +167 FTE 18,790 -307 Employees old CWA 2,490 18,233 3,350 17,692 17,369 17,202 +1,192 Employees new CWA 3,8
Slide 14: Further expansion of self-service customer solutions
FURTHER EXPANSION OF SELF-SERVICE 4 CUSTOMER SOLUTIONS 28,159 PICK-UP BOXES 318 PICK-UP STATIONS 391 DROP-OFF BOXES H1 2018: >1.1m items H1 2018: >1.4m items H1 2018: >2.4m items Number of solutions Items/ month Jun.12 Jun.18 Nov.13 Jun.18 Nov.13 Jun.18 MEDIUM-TERM GOAL TO DOUBLE THE NUMBER OF SELF-
Slide 15: New offerings for more customer service
4 NEW OFFERINGS FOR MORE CUSTOMER SERVICE NEW COOPERATION WITH THE RETAIL FOOD CHAIN HOFER (ALDI) INSTALLATION OF NEW POST PICK-UP STATIONS IN AUSTRIA INVESTOR PRESENTATION | Investor Relations | Vienna, August 10, 2018 15
Slide 16: 3. Group Results H1 2018
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS H1 2018 4. Outlook 2018 INVESTOR PRESENTATION | Investor Relations | Vienna, August 10, 2018 16
Slide 17: H1 2018 financial indicators at a glance
H1 2018 FINANCIAL INDICATORS AT A GLANCE H1 2017 H1 2018 Revenue (EUR m) 953.7 955.2 Revenue slightly above previous year (+0.2%) EBITDA margin 15.0% 15.1% Stable EBITDA margin of 15.1% EBIT margin 10.7% 11.0% Good profitability Earnings/share (EUR) 1.13 1.12 Earnings per share at the prior-year lev
Slide 18: Key income statement indicators
KEY INCOME STATEMENT INDICATORS H1 H1 Q2 Q2 EUR m 2017 2018 % ∆ 2017 2018 +EUR 20.1m one-off Revenue 953.7 955.2 0.2% 1.6 465.0 464.6 income already in Q1 due to dissolution of Other operating income 27.7 50.9 83.7% 23.2 13.0 16.3 partnership with BAWAG P.S.K. Raw materials, consumables and services
Slide 19: Mail & Branch Network Division: Revenue development H1 2018
MAIL & BRANCH NETWORK DIVISION: REVENUE DEVELOPMENT H1 2018 LETTER MAIL & MAIL SOLUTIONS (EUR m) DIRECT MAIL/MEDIA POST (EUR m) • Drop in domestic letter mail volumes of about 5% • Operating revenue down by about 2-3% • Good development of Mail Solutions due to various • Decrease in addressed direct
Slide 20: Mail & Branch Network Division: Income statement
MAIL & BRANCH NETWORK DIVISION: INCOME STATEMENT H1 H1 Q2 Q2 EUR m 20171 2018 % ∆ 20171 2018 Revenue 721.4 695.0 -3.7% -26.4 348.8 335.4 Market pull-out in • Letter Mail & Mail-Solutions 396.0 391.0 -1.3% -5.0 189.5 188.7 CEE/SEE and changed product assignment • Direct Mail 203.1 190.9 -6.0% -12.2 9
Slide 21: Parcel & Logistics Division: Revenue development H1 2018
PARCEL & LOGISTICS DIVISION: REVENUE DEVELOPMENT H1 2018 REVENUE (EUR m) +12.1% PARCEL & LOGISTICS DIVISION: +12.1% 262.6 (Q2: +11.2%) • Organic revenue growth in H1 2018 excl. segment change 234.4 52.4 of Weber Escal +9.7% (Q2: +8.6%) +13.3% CEE/SEE 46.2 SEE/CEE: +13.3% (Q2: +14.2%) • Stable develo
Slide 22: Parcel & Logistics Division: Income statement
PARCEL & LOGISTICS DIVISION: INCOME STATEMENT H1 H1 Q2 Q2 EUR m 20171 2018 % ∆ 20171 2018 +9.7% revenue increase Revenue 234.4 262.6 12.1% 28.3 117.3 130.4 excl. segment change of • Premium 112.2 123.3 9.9% 11.1 56.9 61.4 Weber Escal, Croatia • Standard 104.9 111.8 6.6% 6.9 51.8 54.8 Segment change
Slide 23: Solid balance sheet structure
SOLID BALANCE SHEET STRUCTURE BALANCE SHEET AS AT JUNE 30, 2018 EUR m 1,618.5 1,618.5 Other financial liabilities 6.8 Financial liabilities of Cash and cash equivalents/ only EUR 7m Securities1 334.3 Liabilities/ 418.7 Other Financial assets/ Liquid financial Investment property 135.8 resources of E
Slide 24: Special cash flow effects in H1 2018
SPECIAL CASH FLOW EFFECTS IN H1 2018 CASH FLOW DEVELOPMENT Free cash flow impacted by special effects: EUR m • Special payment of EUR 107.0m due to termination of cooperation with BAWAG P.S.K. less services rendered in the reporting period to the amount of EUR 20.5m 176.2 173.4 • Increased maintenan
Slide 25: 4. Outlook 2018
1. Highlights and Overview 2. Strategy Implementation 3. Group Results H1 2018 4. OUTLOOK 2018 INVESTOR PRESENTATION | Investor Relations | Vienna, August 10, 2018 25
Slide 26: Outlook for 2018 unchanged
OUTLOOK FOR 2018 UNCHANGED • Approx. 5% volume decline p.a. of addressed letter mail due to electronic substitution Market • Volatile direct mail business, negatively impacted by GDPR environment • Double-digit growth on the Austrian parcel market, intense competition and partially own delivery by o
Slide 27: Contact
CONTACT Austrian Post Financial calendar 2018/2019 Investor Relations November 15, 2018 Interim Report Q1-3 2018 Rochusplatz 1, 1030 Vienna March 14, 2019 Annual Results 2018 Website: www.post.at/ir April 11, 2019 Annual General Meeting E-mail: investor@post.at April 23 /May 25, 2019 Ex-day/Dividend