Slide 1: Investor Presentation Q1-3 2015
AUSTRIAN POST INVESTOR PRESENTATION Q1-3 2015 Walter Oblin/CFO Vienna, November 12, 2015
Slide 2: 1. Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results Q1-3 2015 4. Outlook 2015 and 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, November 12, 2015 2
Slide 3: Trends on the Postal and Logistics Market
TRENDS ON THE POSTAL AND LOGISTICS MARKET CHALLENGING MARKET ENVIRONMENT IN Q1-3 2015 AUSTRIAN LETTER MAIL MARKET Intensified negative basic trend of e-substitution AUSTRIAN DIRECT MAIL MARKET Differentiated development of individual customer segments AUSTRIAN PARCEL MARKET Growing competition; onli
Slide 4: Highlights Q1-3 2015
HIGHLIGHTS Q1-3 2015 +1.1% • Group revenue increase of 1.1% to EUR 1,752.3m (+2.2% in Q3) REVENUE • Revenue growth in both the mail business (+0.4%) and the parcel segment (+2.5%) Q1-3 2014 Q1-3 2015 +2.0% • EBIT rise of 2.0% to EUR 135.2m (+ EUR 4.9m in Q3) EARNINGS • Increase in earnings per share
Slide 5: Higher Revenue in Q1-3 2015
HIGHER REVENUE IN Q1-3 2015 REVENUE DEVELOPMENT EUR m +1.1% GROUP: 1,732.7 1,752.3 • Group revenue up 1.1% in Q1-3 from the previous year • 2.2% growth in Q3 MAIL & BRANCH NETWORK: 1,085.7 1,089.5 +0.4% • Slight revenue rise of 0.4% in Q1-3 (+2.0% in Q3) • Positive revenue effects due to provincial
Slide 6: EBIT Increase in Q1-3 2015
EBIT INCREASE IN Q1-3 2015 GROUP: EBIT DEVELOPMENT • EBIT rise of 2.0% in Q1-3 (+14.6% in Q3) EUR m +2.0% MAIL & BRANCH NETWORK • EBIT improvement of EUR 13.1m in Q1-3 135.2 (+ EUR 6.5m in Q3) 132.6 -2.1 -8.3 • Prior-year period reported negative special +13.1 effects of EUR -4.9m (impairment on goo
Slide 7: 2. Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results Q1-3 2015 4. Outlook 2015 and 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, November 12, 2015 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 Performance enhancement and leveraging of market competitive environment potential against the backdrop of strong competition ENHANCING EFFICIE
Slide 9: 1. Letter Mail Market in Austria
1. LETTER MAIL MARKET IN AUSTRIA CONVENTIONAL LETTER MAIL DIRECT MAIL DECLINE IN LETTER MAIL VOLUMES (INTERNATIONAL) • Decrease in volume of addressed direct mail 2014 -2.5% • Growth in unaddressed mail items (further Q2 2015 -4% increase in outreach and number of KUVERT -1% users) -5% Slight accele
Slide 10: 1. Competition on the Austrian Parcel Market
1. COMPETITION ON THE AUSTRIAN PARCEL MARKET PARCELS TO BUSINESS CUSTOMERS PARCELS TO PRIVATE CUSTOMERS MARKET SHARE B2B 2014 (87m PARCELS) MARKET SHARE B2C/C2C 2014 (64m PARCELS) Little economic momentum Strong growth due to for the business parcel online shopping trend; 23% 28% segment Compet- inc
Slide 11: 1. Nationwide Parcel Network
1. NATIONWIDE PARCEL NETWORK THE MOST EFFICIENT LOGISTICS OPERATOR IN AUSTRIA Joint delivery of mail and parcels by mail carriers: >90% of Austria >50% of parcels delivered together with mail 7 logistics centres 260 delivery bases 2,000 service points (of which 1,300 are opened on Saturdays) Coopera
Slide 12: 1. Parcel Delivery as a Quality Benchmark
1. PARCEL DELIVERY AS A QUALITY BENCHMARK NUMBER 1 FOR SERVICE AND QUALITY Delivery six days a week 300 self-service zones 200 pick-up stations >90% success at the first 12,000 pick-up boxes delivery attempt Post App Parcel redirection CO2 neutral delivery (desired day) INVESTOR PRESENTATION I Inves
Slide 13: 2. Growth in Selected Markets
2. GROWTH IN SELECTED MARKETS ACTIVE IN 12 MARKETS – GROWTH FOCUS IN 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: 3. 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 Q1-3 2014/2015: 21,003 -532 FTE 490 20,218 20,064 – 604 Civil servants 1,891 19,417 18,903 – 364 Old CWA 2,490 18,371 3,350 3,858 + 437 New CWA 9,397 4,373 4,809 = – 532 employe
Slide 15: 4. Customer Orientation in Austria
4. CUSTOMER ORIENTATION IN AUSTRIA INNOVATIVE 24/7 SELF-SERVICE SOLUTIONS Pick-up stations Pick-up boxes 191 pick-up stations 11,873 pick-up boxes Nov.13 2014 2015 Sep.15 Jun.12 2013 2014 2015 Sep.15 Cumulative number of pick-up stations Items per month Cumulative number of pick-up boxes Items per m
Slide 16: 3. Group Results Q1-3 2015
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS Q1-3 2015 4. Outlook 2015 and 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, November 12, 2015 16
Slide 17: Financial Indicators Q1-3 2015 at a Glance
FINANCIAL INDICATORS Q1-3 2015 AT A GLANCE Q1-3 2014 Q1-3 2015 Revenue (EUR m) 1,732.7 1,752.3 Revenue above the prior-year level (+1.1%) EBITDA margin 11.6% 11.4% EBITDA margin of 11.4% within the target range EBIT margin 7.7% 7.7% Ongoing high profitability Earnings/share (EUR) 1.47 1.54 Earnings
Slide 18: Key Income Statement Indicators
KEY INCOME STATEMENT INDICATORS Change EUR m Q1-3 2014 Q1-3 2015 % abs. Q3 2014 Q3 2015 Revenue 1,732.7 1,752.3 1.1% 19.7 560.8 573.4 Revenue up 1.1% Other operating income 50.1 50.4 0.5% 0.2 17.7 17.6 Raw materials, consumables Stable staff costs include -545.4 -551.7 -1.2% -6.3 -182.6 -187.8 highe
Slide 19: Mail & Branch Network Division: Revenue Development Q1-3 2015
MAIL & BRANCH NETWORK DIVISION: REVENUE DEVELOPMENT Q1-3 2015 LETTER MAIL & MAIL SOLUTIONS (EUR m) DIRECT MAIL/MEDIA POST (EUR m) • Intensified e-substitution – current decline of letter mail • Higher volume of unaddressed mail items (mainly volume of about 4% large retail companies) • Positive reve
Slide 20: Mail & Branch Network Division: Key Income Statement Indicators
MAIL & BRANCH NETWORK DIVISION: KEY INCOME STATEMENT INDICATORS Change EUR m Q1-3 20141 Q1-3 2015 % abs. Q3 20141 Q3 2015 Revenue 1,085.7 1,089.5 0.4% 3.8 344.7 351.5 Revenue up 0.4% in Q1-3 • Letter Mail & Mail- 580.5 587.4 1.2% 6.9 183.0 186.7 Solutions • Direct Mail 313.1 311.4 -0.6% -1.8 101.7 1
Slide 21: Parcel & Logistics Division: Revenue Development Q1-3 2015
PARCEL & LOGISTICS DIVISION: REVENUE DEVELOPMENT Q1-3 2015 REVENUE (EUR m), REGIONAL MIX (%) +2.5% CEE/SEE: +8.4% (Q3: +5.6%) 646.4 662.7 • Solid revenue growth, high price pressure CEE/SEE 9% +8.4% 9% • Good development in Slovakia and Hungary AUSTRIA: +7.7% (Q3: +6.4%) Austria 35% +7.7% 36% • Cons
Slide 22: Parcel & Logistics Division: Key Income Statement Indicators
PARCEL & LOGISTICS DIVISION: KEY INCOME STATEMENT INDICATORS Change EUR m Q1-3 20141 Q1-3 2015 % abs. Q3 20141 Q3 2015 Revenue 646.4 662.7 2.5% 16.4 215.8 221.9 Revenue increase of 2.5% in Q1-3 2015 • Premium 486.2 495.8 2.0% 9.6 163.1 168.2 • Standard 134.2 140.0 4.3% 5.7 44.0 44.3 • Other Parcel 2
Slide 23: Solid Balance Sheet Structure
SOLID BALANCE SHEET STRUCTURE BALANCE SHEET AS AT SEPTEMBER 30, 2015 EUR m 1,615.7 Other financial 1,615.7 liabilities 20.4 Cash and cash equivalents/ Financial liabilities of only Securities1 342.7 Liabilities/ 406.7 EUR 20m Financial assets/ Other1 Investment property 117.8 Liquid financial resour
Slide 24: Robust Cash Flow Q1-3 2015
ROBUST CASH FLOW Q1-3 2015 CASH FLOW DEVELOPMENT EUR m Higher tax payments mainly Free cash flow including the sale of due to sale of commercial former company headquarters above the properties and Austrian Tax prior-year level Amendment Act 186.4 153.6 +6.0 158.3 152.0 +60.0 -6.3 -41.5 -19.8 Gross
Slide 25: 4. Outlook 2015 and 2016
1. Highlights and Overview 2. Strategy Implementation 3. Group Results Q1-3 2015 4. OUTLOOK 2015 AND 2016 INVESTOR PRESENTATION I Investor Relations I Vienna, November 12, 2015 25
Slide 26: Outlook 2015 and 2016
OUTLOOK 2015 AND 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 momentum in the private customer segment, business parcels environment to remai
Slide 27: Contact
CONTACT Austrian Post Financial calendar 2016 Investor Relations March 10, 2016 Annual Results 2015 Haidingergasse 1, 1030 Vienna April 14, 2016 Annual General Meeting Website: www.post.at/ir April 26/28, 2016 Ex-dividend day/Dividend payment day E-mail: investor@post.at May 13, 2016 Interim report
Slide 28: IF IT REALLY ”
TA IF IT REALLY ” COUNTS; RELY ON AUSTRIAN POST.