Slide 1: Austrian Post Investor Presentation Q1 2016
AUSTRIAN POST INVESTOR PRESENTATION Q1 2016 Georg Pölzl/CEO, Walter Oblin/CFO Vienna, May 13, 2016
Slide 2: Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results Q1 2016 4. Outlook 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, May 13, 2016 2
Slide 3: Q1 2016 at a Glance
Q1 2016 AT A GLANCE AUSTRIAN LETTER MAIL REVENUE MARKET • Revenue down 1.2% to EUR 592.8m Strong e-substitution driven by • Mail revenue down 1.9% due to individual banks and insurance companies effects, stable development in the parcel business AUSTRIAN DIRECT MAIL MARKET EARNINGS Differentiated de
Slide 4: Slight Drop in Revenue in Q1 2016
SLIGHT DROP IN REVENUE IN Q1 2016 REVENUE DEVELOPMENT EUR m -1.2% GROUP: 599.9 592.8 • Revenue down 1.2% from the prior-year quarter MAIL & BRANCH NETWORK: • Revenue decrease of EUR 7.0m in Q1 2016 377,5 370,5 -1.9% • No election effects in Q1 2016 (+ EUR 3.5m in Q1 2015) • Change in the invoicing m
Slide 5: Election Effects Expected to Be Lower in 2016
ELECTION EFFECTS EXPECTED TO BE LOWER IN 2016 Referendum: Mariahilferstraße EU election Vorarlberg State Parliament Chamber of Labour election Elections 2014: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec + EUR 9m revenue Q1 2014: +EUR 3m Q2 2014: + EUR 6m Federal Economic Chamber Burgenland & Sty
Slide 6: EBIT Negatively Impacted by Interest Rate Effect on Provisions
EBIT NEGATIVELY IMPACTED BY INTEREST RATE EFFECT ON PROVISIONS EBIT DEVELOPMENT GROUP: EUR m • EBIT down by EUR 2.8m in Q1 2016 -5.3% • Reduced interest rates lead to higher allocation to provisions (staff-related provision of EUR 9.5m in Q1 2016 vs. EUR 4.8m in Q1 2015) 53.9 +1.6 51.1 MAIL & BRANCH
Slide 7: Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results Q1 2016 4. Outlook 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, May 13, 2016 7
Slide 8: Clear Strategic Priorities
CLEAR STRATEGIC PRIORITIES DEFENDING MARKET LEADERSHIP IN PROFITABLE GROWTH IN 1. THE CORE BUSINESS 2. SELECTED 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 9: Mail and Parcel Business in Austria
1. MAIL AND PARCEL BUSINESS IN AUSTRIA LETTER MAIL PARCEL BUSINESS Ongoing e-substitution Increased competition on the Austrian parcel market (banks, insurance companies, public institutions) Number 1 for service offering and quality Innovative, high quality customer solutions • Information campaign
Slide 10: Growth in Selected Markets
2. GROWTH IN SELECTED MARKETS ACTIVE IN 12 MARKETS – GROWTH FOCUS ON PARCEL & LOGISTICS CEE/SEE Parcel subsidiaries: • Ongoing positive volume development and strong export growth • Intensive competition and price pressure Mail subsidiaries: • Difficult market environment GERMANY • Focus on markets
Slide 11: 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 Q1 2015/Q1 2016: 490 21,003 -560 FTE – 419 Civil servants 20,218 20,064 1,891 19,417 – 473 Old CWA 2,490 18,790 3,350 18,165 17,605 + 332 New CWA 3,858 9,397 4,374 4,384 – 560 e
Slide 12: New Customer Solutions Are Well Received
4. NEW CUSTOMER SOLUTIONS ARE WELL RECEIVED 218 PICK-UP STATIONS 14,494 PICK-UP BOXES Q1 2016: >300,000 items Q1 2016: >220,000 item Cumulative Cumulative number number of pick- of pick-up boxes up stations Items per month Items per month Nov.13 2014 2015 Mar.16 Jun.12 2013 2014 2015 Mar.16 410,000
Slide 13: Group Results Q1 2016
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS Q1 2016 4. Outlook 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, May 13, 2016 13
Slide 14: Financial Indicators Q1 2016 at a Glance
FINANCIAL INDICATORS Q1 2016 AT A GLANCE Q1 2015 Q1 2016 Revenue (EUR m) 599.91 592.8 Q1 revenue below the prior-year level (-1.2%) EBITDA margin 12.5% 11.7% EBITDA margin of 11.7% within the targeted range EBIT margin 9.0% 8.6% Reported EBIT slightly below prior-year level Earnings per share with a
Slide 15: Key Profit and Loss Account Indicators
KEY PROFIT AND LOSS ACCOUNT INDICATORS Change EUR m Q1 20151 Q1 2016 % abs. Revenue 599.9 592.8 -1.2% -7.2 Interest rate Other operating income 16.4 23.5 43.4% 7.1 adjustment Raw materials, consumables and services increases expenses -182.5 -183.1 -0.4% -0.7 for staff-related used provisions by EUR
Slide 16: Mail & Branch Network Division: Revenue Development in Q1 2016
MAIL & BRANCH NETWORK DIVISION: REVENUE DEVELOPMENT IN Q1 2016 LETTER MAIL & MAIL SOLUTIONS (EUR m) DIRECT MAIL/MEDIA POST (EUR m) • Decline in letter mail volume at the upper end of the • Differentiated development of individual customer predicted 3-5% range segments (negative development of busine
Slide 17: Mail & Branch Network Division: Profit and Loss Account
MAIL & BRANCH NETWORK DIVISION: PROFIT AND LOSS ACCOUNT Change Revenue decline EUR M Q1 2015 Q1 2016 % abs. from e-substitution and lack of election Revenue 377.5 370.5 -1.9% -7.0 effects • Letter Mail & Mail-Solutions 206.4 204.9 -0.7% -1.5 Decrease in direct • Direct Mail 109.1 102.9 -5.7% -6.2 ma
Slide 18: Parcel & Logistics Division: Revenue Development Q1 2016
PARCEL & LOGISTICS DIVISION: REVENUE DEVELOPMENT Q1 2016 REVENUE (EUR m), REGIONAL MIX (%) -0.1% CEE/SEE: +1.4% 222.4 222.3 • Solid revenue growth, high price pressure CEE/SEE 8.0% +1.4% 8.2% • Good development in Croatia and Hungary AUSTRIA: +2.8% Austria 36.7% +2.8% 37.8% • Intensified competition
Slide 19: Parcel & Logistics Division: Profit and Loss Account
PARCEL & LOGISTICS DIVISION: PROFIT AND LOSS ACCOUNT Change EUR m Q1 20151 Q1 2016 % abs. Revenue 222.4 222.3 -0.1% -0.2 Slight revenue growth in the core • Premium 165.2 166.9 1.0% 1.7 business • Standard 48.4 46.0 -5.0% -2.4 • Other Parcel Services 8.8 9.3 5.9% 0.5 Total revenue2 224.4 225.0 0.3%
Slide 20: Solid Balance Sheet Structure
SOLID BALANCE SHEET STRUCTURE BALANCE SHEET AS AT MARCH 31, 2016 EUR m Financial liabilities of only 1,639.7 1,639.7 EUR 12m Other financial liabilities 12.2 Breakdown of provisions Cash and cash equivalents/ 397.7 Liquid financial Liabilities/ 356.7 EUR m Securities1 Other Other provisions resource
Slide 21: Robust Cash Flow Q1 2016
ROBUST CASH FLOW Q1 2016 CASH FLOW DEVELOPMENT EUR m Cash flow from operating activities slightly above Q1 2015 Improvement in the operating free cash flow 60.1 in Q1 2016 52.6 -7.5 -9.6 -0.5 38.3 -4.1 Cash flow CAPEX Operating CAPEX new Other Acquisitions/ Free cash flow from free cash corporate Ch
Slide 22: Outlook 2016
1. Highlights and Overview 2. Strategy Implementation 3. Group Results Q1 2016 4. OUTLOOK 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, May 13, 2016 22
Slide 23: Outlook 2016
OUTLOOK 2016 • Public sector customers as well as banks and insurance companies are trying to reduce mail volumes Market • Volume decline of about 5% expected in the next quarterly periods environment • Differentiated trends on the advertising market • Expanding parcel market featuring intensified c
Slide 24: Contact
CONTACT Austrian Post Financial calendar 2016 Investor Relations May 13, 2016 Interim report Q1 2016 Haidingergasse 1, 1030 Vienna August 11, 2016 Half-year financial report 2016 Website: www.post.at/ir November 11, 2016 Interim report Q1-3 2016 E-mail: investor@post.at Telephone: +43 57767-30401 Fa
Slide 25: HIER KONNEN
HIER KONNEN 5 IE SEN RBUNGEN NON a BIS a UHR SELBST A OLEN. Y Seis IF IT REALL ae RELY ON AUSTRIAN POST.