Slide 1: Austrian Post Investor Presentation FY 2015
AUSTRIAN POST INVESTOR PRESENTATION FY 2015 Georg Pölzl/CEO, Walter Oblin/CFO Vienna, March 10, 2016
Slide 2: 1. Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results 2015 4. Outlook 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, March 10, 2016 2
Slide 3: 2015 at a Glance
2015 AT A GLANCE AUSTRIAN LETTER MAIL REVENUE MARKET • Revenue increase of 1.6% to EUR 2,401.9m Basic trend of e-substitution (+3.1% in Q4) continues • Rise in revenue in both the mail (+0.9%) and parcel (+2.9%) segments AUSTRIAN DIRECT MAIL MARKET EARNINGS Differentiated development of • Operating
Slide 4: Higher Revenue in 2015
HIGHER REVENUE IN 2015 REVENUE DEVELOPMENT EUR m +1.6% GROUP: 2,363.5 2,401.9 • Annual revenue up 1.6% from 2014 • 3.1% growth in Q4 MAIL & BRANCH NETWORK: 1,501.7 • Slight revenue increase of 0.9% in 2015 1,487.7 +0.9% (+2.5% in Q4) • Positive revenue effects from upward adjustment in postal rates
Slide 5: Improved Operating EBIT Level
IMPROVED OPERATING EBIT LEVEL EBIT DEVELOPMENT EUR m Negative effects in 2015: Impairment losses at the trans- +2.6% o-flex Group and PostMaster Romania 196.9 198.0 192.9 +11 -9 +3 Positive effect in 2015: Claims related to non-wage costs for civil servants Special effects in 2014: • Sale of former
Slide 6: 2. Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results 2015 4. Outlook 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, March 10, 2016 6
Slide 7: 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 4. 4. INN
Slide 8: Letter Mail Market Environment in an International Comparison
LETTER MAIL MARKET ENVIRONMENT IN AN 1. INTERNATIONAL COMPARISON FURTHER DECLINE IN INTERNATIONAL LETTER MAIL VOLUMES ADDRESSED LETTER MAIL VOLUMES PRO CAPITA 2014 Ø VOLUME DECLINE (Q1-3 2015) Royal Mail 203 -3.0% Austrian Post Letter Mail Direct Mail 180 -4.0% German Post 170 -3.8% bpost 166 -5.5%
Slide 9: Letter Mail Volume Development in Austria
1. LETTER MAIL VOLUME DEVELOPMENT IN AUSTRIA LETTER MAIL (items in millions) DIRECT MAIL/MEDIA POST2 (items in millions) • Basic trend of electronic substitution continues • Weak economic situation with pressure on the direct • Volume effect on a comparable basis of minus 4% mail market in 2015 • Gr
Slide 10: Austrian Parcel Market Environment
1. AUSTRIAN PARCEL MARKET ENVIRONMENT VOLUME DEVELOPMENT ON THE ENTIRE MARKET SHARES IN AUSTRIA MARKET (parcels in millions) BY VOLUME +1.4% +3.7% B2B 156.8 (88m parcels) 149.0 151.1 31% 69% 87.7 B2B -1.3% 86.7 +1.2% 87.8 Austrian Post Competitors B2C/C2C 24% (69m parcels) B2C 61.2 +5.4% 64.4 +7.2%
Slide 11: Parcel & Logistics Business in Austria
1. PARCEL & LOGISTICS BUSINESS IN AUSTRIA PARCEL VOLUMES OF AUSTRIAN POST Logistics advantage due to joint delivery (in millions) of letter mail and parcels by mail carriers: Ø +7.9% >90% of the area in Austria +8.5% >50% of parcels in combined delivery 80 74 70 65 59 2011 2012 2013 2014 2015 Parcel
Slide 12: Parcel Delivery as a Quality Benchmark
1. PARCEL DELIVERY AS A QUALITY BENCHMARK NUMBER 1 IN SERVICE OFFERING AND QUALITY Delivery six days a week in urban areas 302 self-service zones 210 pick-up stations >90% success in the first 13,416 pick-up boxes delivery attempt Post App Parcel redirection CO2 neutral delivery (desired day) INVEST
Slide 13: 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 • Strong competition and price pressure Mail subsidiaries: • Sale of the subsidiaries feibra Hungary and Kolos • Focus o
Slide 14: Ongoing Investment Programme
3. ONGOING INVESTMENT PROGRAMME FUTURE-ORIENTED INVESTMENTS TO ENHANCE EFFICIENCY/CUSTOMER ORIENTATION Investments in 2015: Replacement investments in the Sorting technologies EUR 80.7m1 vehicle fleet 7% 10% 12% 35% 36% Branch network and self-service Capacity expansion zones Technical plant and mac
Slide 15: 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 490 21,003 -557 FTE 2014/2015: 20,218 20,064 1,891 19,417 – 582 Civil servants 2,490 18,790 18,233 3,350 – 376 Old CWA 3,858 9,397 4,374 + 401 New CWA 4,775 7,883 = – 557 employ
Slide 16: Customer Orientation in Austria
4. CUSTOMER ORIENTATION IN AUSTRIA INNOVATIVE 24/7 SELF-SERVICE SOLUTIONS Pick-up stations Pick-up boxes 210 pick-up stations 13,416 pick-up boxes Nov.13 2014 2015 Dec.15 Jun. 2012 2013 2014 2015 Dec.15 Cumulative number of pick-up stations Items per month Cumulative number of pick-up boxes Items pe
Slide 17: Next Steps Customer Orientation in 2016
4. NEXT STEPS CUSTOMER ORIENTATION IN 2016 NATIONWIDE SATURDAY DELIVERY POST ENERGY COSTS CALCULATOR SERVICE • Saturday parcel delivery • New service for comparing prices already offered to 2.9 million of different electricity and gas households suppliers enables customers to • Nationwide roll-out b
Slide 18: 3. Group Results 2015
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS 2015 4. Outlook 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, March 10, 2016 18
Slide 19: Financial Indicators 2015 at a Glance
FINANCIAL INDICATORS 2015 AT A GLANCE 2014 2015 Revenue (EUR m) 2,363.51 2,401.9 Revenue higher than in the previous year (+1.6%) EBITDA margin of 12.6% including positive special EBITDA margin 14.1% 12.6% effect 8.2%2 Operating EBIT before special effects of EBIT margin 8.3% EUR 198.0m, reported EB
Slide 20: Primary Balance Sheet and Earnings Effects in 2015
PRIMARY BALANCE SHEET AND EARNINGS EFFECTS IN 2015 Special effects Earnings effect TRANS-O-FLEX GROUP Recognised as “held for sale“; impairment minus EUR 122.1m GERMANY on goodwill and assets of the trans-o-flex Group Impairment of trade receivables of minus EUR 3.7m distribution companies POSTMASTE
Slide 21: Key Income Statement Indicators
KEY INCOME STATEMENT INDICATORS Change Claims related to non-wage costs EUR m 20141 2015 % abs. Q4 20141 Q4 2015 paid in previous Revenue 2,363.5 2,401.9 1.6% 38.5 636.0 655.4 periods, amounting to a net total of Other operating income 134.4 99.2 -26.2% -35.3 84.3 48.8 EUR 23.0m Raw materials, consu
Slide 22: Mail & Branch Network Division: Revenue Development in 2015
MAIL & BRANCH NETWORK DIVISION: REVENUE DEVELOPMENT IN 2015 LETTER MAIL & MAIL SOLUTIONS (EUR m) DIRECT MAIL/MEDIA POST (EUR m) • Decline of 4% in letter mail volumes • Increase in unaddressed direct mail (primarily large retail companies) • Positive revenue effects starting in March due to upward p
Slide 23: Mail & Branch Network Division: Key Income Statement Indicators
MAIL & BRANCH NETWORK DIVISION: KEY INCOME STATEMENT INDICATORS Change EUR m 2014 2015 % abs. Q4 2014 Q4 2015 Revenue 1,487.7 1,501.7 0.9% 14.0 402.0 412.2 Revenue increase of 0.9% in 2015 • Letter Mail & 790.5 808.4 2.3% 17.9 210.0 221.0 Mail-Solutions • Direct Mail 431.0 428.7 -0.5% -2.2 117.9 117
Slide 24: Parcel & Logistics Division: Revenue Development in 2015
PARCEL & LOGISTICS DIVISION: REVENUE DEVELOPMENT IN 2015 REVENUE (EUR m), REGIONAL MIX (%) +2.9% SOUTH EAST/EASTERN EUROPE: +6.6% (Q4: +3.5%) 875.0 900.2 • Solid revenue growth, high price pressure CEE/SEE 8.2% +6.6% 8.5% • Good development in Croatia and Hungary AUSTRIA: +7.4% (Q4: +6.5%) Austria 3
Slide 25: Parcel & Logistics Division: Key Income Statement Indicators
PARCEL & LOGISTICS DIVISION: KEY INCOME STATEMENT INDICATORS Change EUR m 20141 2015 % abs. Q4 20141 Q4 2015 Revenue 875.0 900.2 2.9% 25.2 233.8 243.2 Revenue up 2.9% in 2015 • Premium 651.5 668.4 2.6% 17.0 170.3 178.3 • Standard 188.2 195.4 3.8% 7.1 54.0 55.4 • Other Parcel Services 35.3 36.4 3.0%
Slide 26: Solid Balance Sheet Structure
SOLID BALANCE SHEET STRUCTURE BALANCE SHEET AS OF DECEMBER 31, 2015 EUR m Financial liabilities of only EUR 13m 1,613.0 1,613.0 Other financial 12.6 Provisions are largely liabilities Cash and cash equivalents/ Securities1 356.7 372.1 non-current (EUR m) Liabilities/ Other Other provisions Financial
Slide 27: Robust Cash Flow in 2015
ROBUST CASH FLOW IN 2015 CASH FLOW DEVELOPMENT EUR m Higher tax payments and Free cash flow after effect from the increase in trade receivables old/new corporate headquarters above 265.0 the prior-year level 216.2 +60.0 +6.8 178.3 167.2 -11.1 -71.8 -32.9 Gross cash Cash flow from CAPEX CAPEX for Sal
Slide 28: Dividend Policy
DIVIDEND POLICY ATTRACTIVE AND PREDICTABLE DIVIDEND POLICY • Dividend proposal to the Annual General Meeting: EUR 1.95 1.951 1.95/share 1.90 1.80 1.70 1.60 • Dividend yield as of Dec. 31, 2015: 1.50 5.8% (based on share price of EUR 33.63) • Dividend policy: distribution of at least 75% of the Group
Slide 29: 4. Outlook 2016
1. Highlights and Overview 2. Strategy Implementation 3. Group Results 2015 4. OUTLOOK 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, March 10, 2016 29
Slide 30: Outlook 2016
OUTLOOK 2016 • Decline in addressed mail volume in the range of 3-5% Market • Differentiated volume development for direct mail items environment • Competitive and price pressure in the parcel business; positive impetus in the private customer segment, little impetus for business parcels • Revenue i
Slide 31: Contact
CONTACT Austrian Post Financial calendar 2016 Investor Relations April 14, 2016 Annual General Meeting Haidingergasse 1, 1030 Vienna April 26/28, 2016 Ex-dividend day/Dividend payment day Website: www.post.at/ir May 13, 2016 Interim report Q1 2016 E-Mail: investor@post.at August 11, 2016 Half-year f
Slide 32: Investorenpräsentation | Investor Relations | Wien, 10. März 2016
INVESTORENPRÄSENTATION I Investor Relations I Wien, 10. März 2016 32