Slide 1: Investor Presentation Q1-3 2021
AUSTRIAN POST Investor Presentation Q1-3 2021 Walter Oblin, CFO Vienna, 11 November 2021 INVESTOR PRESENTATION Investor Relations Vienna, 11 November 2021
Slide 2: Agenda: Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results Q1-3 2021 4. Outlook 2021 INVESTOR PRESENTATION Investor Relations Vienna, 11 November 2021 2
Slide 3: Austrian Post at a Glance
AUSTRIAN POST AT A GLANCE Mail Parcel & Logistics Retail & Bank Revenue mix Q1-3 2021 – Letter Mail – Parcels and Express – Branch and Financial – Direct Mail – Fulfillment and Services Branch & – Newspapers and Cash Transport – Customer Services Financial Services Magazines – E-Commerce Services Pa
Slide 4: Ongoing Structural Change
ONGOING STRUCTURAL CHANGE Consistent strategy implementation enables balanced positioning Mail and parcel as strong pillars Revenue in EUR m 1,830.5 1,462.2 1,497.9 1,321.6 905.6 191.3 437.2 576.6 Parcel & Logistics Mail Retail & Bank 1,011.2 970.2 883.3 893.4 117.6 63.4 45.7 48.8 Q1-3 20101 Q1-3 20
Slide 5: Q1-3 2021 Overview
Q1-3 2021 OVERVIEW Q1-3 business development driven by a strong recovery; market environment increasingly affected by macroeconomic issues Trends − Decline in traditional letter mail continues − Volatile and marginally declining direct mail volumes − Parcel volumes: from a growth spurt to a moderate
Slide 6: Ongoing Positive Revenue Development in Q1-3 2021
ONGOING POSITIVE REVENUE DEVELOPMENT IN Q1-3 2021 Organic and inorganic growth in the parcel business Revenue development EUR m +22.2% Group: +22.2% to EUR 1,830.5m Full consolidation of the Turkish company Aras Kargo increases total (+8.8% excl. Aras Kargo) revenue 1,830.5 Mail: +1.1% to EUR 893.4m
Slide 7: Strong Earnings Improvement Due to the Parcel Business
STRONG EARNINGS IMPROVEMENT DUE TO THE PARCEL BUSINESS EBIT development EUR m Group: +76.9% to EUR 144.0m +76.9% Earnings increase in all divisions Mail: +3.8% to EUR 110.8m 144.0 – Slight recovery compared to 2020 leads to positive earnings development in the letter and direct mail +6.5 business +3
Slide 8: 2. Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results Q1-3 2021 4. Outlook 2021 INVESTOR PRESENTATION Investor Relations Vienna, 11 November 2021 8
Slide 9: INVESTOR PRESENTATION Investor Relations Vienna, 11 November 2021
INVESTOR PRESENTATION Investor Relations Vienna, 11 November 2021 9
Slide 10: Letter Mail
1 LETTER MAIL Steady decline of letter mail volumes − Q3 2021: drop of 6% − Q1-3 2021: -4% (after -8% in Q1-3 2020) Volumes (millions of items) Ø -4.6% 2020-2021 Letter Mail volumes in -6.8% Austria 939 931 910 (items on a daily basis) 833 764 728 723 690 643 -1% -2% -5% -4% -6% -7% EUR 733m Revenue
Slide 11: Direct Mail/Media Post in Austria
1 DIRECT MAIL/MEDIA POST IN AUSTRIA Ongoing volatile development of direct mail and media post volumes − Q3 2021: decrease of 4% − Q1-3 2021: -0.2% (after sharper decline of Volumes (millions of items) 13% in Q1-3 2020) Ø -2.9% 2020-2021 Direct Mail/Media Post volumes in Austria -11.3% 5,108 4,883 (
Slide 12: Good Growth in the Austrian Parcel Business
1 GOOD GROWTH IN THE AUSTRIAN PARCEL BUSINESS Moderate volume growth following high increases in the prior-year period − Q3 2021: growth of 7% Volumes (millions of parcels) − Q1-3 2021: +16% (after +28% in Q1-3 2020) +230% 2020-2021 Parcel business volumes in Austria +30% (items on a daily basis) 16
Slide 13: Investments in the Logistics Infrastructure
1 INVESTMENTS IN THE LOGISTICS INFRASTRUCTURE CAPEX (EUR m) 153 139 143 Growth CAPEX >80 Austria Capacity expansion is the top priority (incl. properties) – Maintenance CAPEX of EUR 51.4m in Q1-3 2021 – Growth CAPEX of EUR 42.5m in Q1-3 2021 20-30 CAPEX International Ongoing implementation of the in
Slide 14: Expansion of the Austrian Logistics Infrastructure
1 EXPANSION OF THE AUSTRIAN LOGISTICS INFRASTRUCTURE 2018 2019 2020 2021 2022 2023 LC Carinthia LC = Logistics centre Wernberg LC Lower Austria Hagenbrunn Sorting capacity LC Styria Kalsdorf end of 2021: 90,000 parcels/h Phase 1 LC Salzburg Thalgau LC Vorarlberg Sorting capacity end of 2022: LC Tyro
Slide 15: Staff Structure in Austria
1 STAFF STRUCTURE IN AUSTRIA Employees in the Austrian core business FTEs (average for the period) Increased demand for logistics 21,926 staff due to higher parcel volumes 21,003 490 20,218 20,064 +284 19,417 1,891 18,790 18,233 2,490 17,692 17,463 17,644 17,452 17,716 18,000 3,350 3,858 9,397 4,374
Slide 16: Growth in Near Markets
2 GROWTH IN NEAR MARKETS Proximity to the core business: Regional proximity: Extending the value chain and digital development Focus on parcel business in CEE/SEE of the business model EUR and Turkey EUR ~60m >400m REVENUE P.A. REVENUE P.A. Extending the value chain Top player in near markets – Scan
Slide 17: Ongoing Growth in the International Parcel Markets
2 ONGOING GROWTH IN THE INTERNATIONAL PARCEL MARKETS OF AUSTRIAN POST Parcel volumes in Turkey & CEE/SEE (millions of items) 250 198 190 185 172 173 149 139 130 206 116 Turkey: growth market with strong 156 150 161 e-commerce dynamics 139 141 112 120 106 CEE/SEE: Strong volume growth 95 driven by th
Slide 18: Aras Kargo
2 ARAS KARGO Financial indicators – Q1-3 2021 revenue: TRY 2,191m (EUR 227m) – Full consolidation as at 25 August 2020 – Company with strong balance sheet, no loans Revenue Parcel volumes (TRY m) (millions of items) Ø +18.6% 2,299 2,191 206 156 150 161 139 120 Q1-3 Q1-3 2020 2020 2016 2020 Q1-3 2016
Slide 19: bank99 + ING Retail Business in Austria
3 BANK99 + ING RETAIL BUSINESS IN AUSTRIA bank99 AG ING in Austria (private customers) Complementary customer structure… …from a regional/demographic perspective More than 90,000 customers More than 100,000 customers Complementary strengths… …in product structure Current accounts Consumer and mortga
Slide 20: Self-Service Zones: Innovative Services for Sending and Receiving
3 SELF-SERVICE ZONES: INNOVATIVE SERVICES FOR SENDING AND RECEIVING Q1-3 2021: >3.4m items Q1-3 2021: >4.3m items Q1-3 2021: >6.6m items 57,224 pick-up boxes 93,833 compartments in pick-up 478 drop-off boxes stations June 2012 Sept. 2021 November 2013 Sept. 2021 January 2012 Sept. 2021 Q1-3 2021 vs.
Slide 21: INVESTOR PRESENTATION Investor Relations Vienna, 11 November 2021
INVESTOR PRESENTATION Investor Relations Vienna, 11 November 2021 21
Slide 22: Strategic Sustainability Targets by 2030
STRATEGIC SUSTAINABILITY TARGETS BY 2030 Economy & Customers Continuation of the growth path Revenue of EUR 3 bn in 2030 based on continuous parcel growth Environment & Climate Decarbonisation of logistics: – 40% reduction in absolute CO2 emissions – 70% decline in specific CO2 emissions – 100% C02-
Slide 23: Current Topics 2030 Sustainability Master Plan
CURRENT TOPICS 2030 SUSTAINABILITY MASTER PLAN Economy & Customers Environment & Climate People & Social Sustainable governance Carbon reduction measures Corporate & leadership culture − Further development of − Expansion of the e-vehicle fleet − Corporate COVID-19 vaccination sustainability reporti
Slide 24: Flagship Project Green Graz
FLAGSHIP PROJECT “GREEN GRAZ” Emission-free delivery since the end of October 2021 Mail delivery 100% carbon-free 65 e-cars, 15 e-mopeds, 52 e-bikes City Hub Pilot project in Vienna and Graz Shift to foot tours, high productivity Electric vehicles in parcel delivery Test of first vehicles on the mar
Slide 25: Green Packaging
“GREEN PACKAGING” Reusable solutions for parcel shipping − Pilot project with five cooperating retail companies: dm, INTERSPAR online store weinwelt.at, INTERSPORT, Tchibo and Thalia − Launch in February 2022 − Four sustainable reusable packaging products in testing 01 Re-Zip Boxes 02 Re-Zip Bags 03
Slide 26: 3. Group Results Q1-3 2021
1. Highlights and Overview 2. Strategy Implementation 3. Group Results Q1-3 2021 4. Outlook 2021 INVESTOR PRESENTATION Investor Relations Vienna, 11 November 2021 26
Slide 27: Financial Indicators at a Glance
FINANCIAL INDICATORS AT A GLANCE Q1-3 2020 Q1-3 2021 Revenue (EUR m) 1,497.9 1,830.5 Ongoing good revenue development of +22.2% EBITDA margin (%) 12.0 14.6 Strong parcel business improves EBITDA margin EBIT margin (%) 5.4 7.9 Good development of the EBIT margin Earnings/share (EUR) 1.03 1.57 Earning
Slide 28: Key Income Statement Indicators
KEY INCOME STATEMENT INDICATORS EUR m Q1–3 20201 Q1–3 2021 % ∆ Q3 20201 Q3 2021 Good development of all divisions, positive special Revenue 1,497.9 1,830.5 22.2% 332.6 516.0 570.1 effects due to one-off mailings and logistics services Other operating income 44.0 59.3 34.8% 15.3 15.6 16.2 in Mail and
Slide 29: Mail Division: Q1-3 2021 Revenue Development
MAIL DIVISION: Q1-3 2021 REVENUE DEVELOPMENT Letter Mail & Business Solutions (EUR m) Direct Mail/Media Post (EUR m) – Revenue increase of 0.7% in Q1-3 2021 – Revenue growth of 2.0% in Q1-3 2021 – Ongoing drop of letter mail volumes in Austria, down 4% – Slight volume decline in Austria of 0.2% in Q
Slide 30: Mail Division: Key Income Statement Indicators
MAIL DIVISION: KEY INCOME STATEMENT INDICATORS EUR m Q1–3 2020 Q1–3 2021 % ∆ Q3 2020 Q3 2021 Revenue 883.3 893.4 1.1% 10.1 292.7 285.2 Solid revenue development of letter mail against the • Letter Mail & Business Solutions 566.2 570.0 0.7% 3.8 184.9 178.0 backdrop of an ongoing • Direct Mail 232.8 2
Slide 31: Parcel & Logistics Division: Q1-3 2021 Revenue Development
PARCEL & LOGISTICS DIVISION: Q1-3 2021 REVENUE DEVELOPMENT Revenue development Parcel & Logistics Division: +57.1% EUR m E-commerce and Aras Kargo continue to drive revenue +57.1% upwards Austria: EUR +110.7m 905.6 – Ongoing strong revenue growth Turkey >+100% 226.8 CEE/SEE: EUR +15.4m 576.6 – Volum
Slide 32: Parcel & Logistics Division: Key Income Statement Indicators
PARCEL & LOGISTICS DIVISION: KEY INCOME STATEMENT INDICATORS EUR m Q1–3 2020 Q1–3 2021 % ∆ Q3 2020 Q3 2021 Revenue 576.6 905.6 57.1% 329.0 208.7 277.6 Organic and inorganic growth in the parcel business • Premium 343.1 606.9 76.9% 263.7 131.1 182.1 • Standard 182.5 219.2 20.2% 36.8 60.4 65.6 • Other
Slide 33: Retail & Bank Division: Q1-3 2021 Revenue Development
RETAIL & BANK DIVISION: Q1-3 2021 REVENUE DEVELOPMENT Revenue development Retail & Bank Division: +6.7% EUR m Start of bank99 in April 2020 +6.7% Result from Financial Services: EUR +6.5m – Revenue of EUR 18.9m in Q1-3 2021 45.7 48.8 Branch Services: EUR -3.4m – Revenue with retail goods and branch
Slide 34: Retail & Bank Division: Key Income Statement Indicators
RETAIL & BANK DIVISION: KEY INCOME STATEMENT INDICATORS EUR m Q1–3 2020 Q1–3 2021 % ∆ Q3 2020 Q3 2021 Decline due to lower revenue from retail goods and Revenue 45.7 48.8 6.7% 3.1 17.1 14.8 discontinuation of service fees from the former banking • Branch Services 33.3 29.9 -10.1% -3.4 10.8 8.4 partn
Slide 35: Solid Balance Sheet and Financing Structure
SOLID BALANCE SHEET AND FINANCING STRUCTURE EUR m ASSETS EQUITY & 2.809,0 2.809,0 Cash, money market/ 2,680.2 Liquid financial LIABILITIES 2,680.2 176.7 resources of Includes lease liabilities of securities invesments 299.1 EUR 299m (IFRS 16) 218.9 90.0 EUR 177m Other financial Financial assets, lia
Slide 36: Strong Operating Free Cash Flow in Q1-3 2021
STRONG OPERATING FREE CASH FLOW IN Q1-3 2021 EUR m Primarily customers Operating free cash flow Free cash flow before money market and deposits of bank99 of EUR 196.5m securities investments of EUR 153.7m 412.7 246.4 +1.4 196.5 -166.3 153.7 -51.4 -42.5 -0.2 Cash flow from Core banking Cash flow from
Slide 37: 4. Outlook
1. Highlights and Overview 2. Strategy Implementation 3. Group Results Q1-3 2021 4. OUTLOOK 2021 INVESTOR PRESENTATION Investor Relations Vienna, 11 November 2021 37
Slide 38: Outlook 2021
OUTLOOK 2021 Market environment – Further adverse effects as a result of the COVID-19 pandemic – 2021 increasingly shaped by macroeconomic issues (supply bottlenecks and inflation) – Subject to approval by the authorities, closing of acquisition of ING retail business expected by the end of 2021 Rev
Slide 39: Contact
CONTACT Austrian Post Financial Calendar 2022 Investor Relations 11 March 2022 Annual Results 2021 Rochusplatz 1, 1030 Vienna 21 April 2022 Annual General Meeting Website: post.at/ir 3 May/5 May 2022 Ex-day/Dividend Payment Day E-mail: investor@post.at 13 May 2022 Interim Report Q1 2022 Telephone: +