Slide 1: Austrian Post Investor Presentation H1 2023
AUSTRIAN POST Investor Presentation H1 2023 Walter Oblin, CFO Vienna, 10 August 2023 INVESTOR PRESENTATION Investor Relations Vienna, 10 August 2023
Slide 2: Austrian Post at a Glance
AUSTRIAN POST AT A GLANCE Revenue mix H1 2023 Branch & Financial Services Parcel International 6% Letter Mail & 17% 29% Business EUR Solutions Mail Parcel & Logistics Retail & Bank – Letter Mail – Parcels and Express – Branch and Financial 1,285 – Direct Mail – Fulfilment and Services Revenue – News
Slide 3: Economic Environment in 2023 Impacted by Purchasing Power, Inflation and Currency
ECONOMIC ENVIRONMENT IN 2023 IMPACTED BY PURCHASING POWER, INFLATION AND CURRENCY Consolidation in e-commerce High level of inflation, Türkiye: high inflation (also in retail trade) little growth momentum with volatile currency E-commerce expenditure in Austria -4.5% Austrian Consumer Price Index Tu
Slide 4: First Half-Year 2023 in Line with Expectations
FIRST HALF-YEAR 2023 IN LINE WITH EXPECTATIONS – Growing core business despite challenges Revenue up by 6.0% to EUR 1,285m Group – Positive trends also in subsidiaries (logistics and bank) EBIT of EUR 95m (+4.6%) – Earnings improvement due to cost and price discipline – Ongoing structural decline of
Slide 5: Group Revenue Up by 6.0% in H1 2023
GROUP REVENUE UP BY 6.0% IN H1 2023 Revenue development EUR m +6.0% (+4.4% excl. Parcel Türkiye) Retail & Bank 1,284.8 1,211.8 – Good market environment supports growth in financial services +41.3% 76.5 54.2 Q2 – Increase of Income from Financial Services to EUR 56.6m (+59.9%) +40.9% – Branch Servic
Slide 6: Q1 and Q2 Group Revenue Negatively Affected by Turkish Lira Exchange Rate
Q1 AND Q2 GROUP REVENUE NEGATIVELY AFFECTED BY TURKISH LIRA EXCHANGE RATE Quarterly comparison of revenue EUR m Q1 Q2 Fluctuations in revenue increase due to +10.5% +1.6% currency effects 664.7 – Revenue contribution from Türkiye 601.4 610.4 620.2 83.6 +65.9% 49.5 negatively impacted by exchange rat
Slide 7: Business in Türkiye Shows Strong Operating Development
BUSINESS IN TÜRKIYE SHOWS STRONG OPERATING DEVELOPMENT Financial indicators Parcel volumes Revenue (millions of items) (TRY m) (EUR m) – Positive volumes (+11%) and TRY revenue development (+101%) – EBIT margin above Group average – Cash and cash equivalents in the +11% +101% +23% balance sheet >50%
Slide 8: Group Results in H1 2023 with Earnings Improvement in Retail & Bank
GROUP RESULTS IN H1 2023 WITH EARNINGS IMPROVEMENT IN THE RETAIL & BANK DIVISION EBIT development EUR m Mail +4.6% – Declining volumes partially offset by postal rate effects – Q2 EBIT from EUR 41.8m to EUR 36.7m, 95.2 H1 EBIT from EUR 82.9m to EUR 77.6m 91.0 -3.0 -5.2 Parcel & Logistics -9.1 +21.5
Slide 9: Strategy of Austrian Post: Ahead to the Future
STRATEGY OF AUSTRIAN POST: AHEAD TO THE FUTURE INVESTOR PRESENTATION Investor Relations Vienna, 10 August 2023 9
Slide 10: Letter Mail
1 LETTER MAIL H1 2023 Letter Mail volumes in Austria (daily items) Volumes Austria and International – Austrian letter mail volumes down by 6% in H1 (millions of items) – Positive special effects in Q2 2022 (energy bonus and mailings by utility companies) Ø -4.3% p.a. Ø -4.6% p.a. 939 +6% Q1 2022 in
Slide 11: Priority and Non-Priority Rates in Europe
1 PRIORITY AND NON-PRIORITY RATES IN EUROPE Denmark 1.38 3.67 Italy 1.46 3.40 Estonia 1.81 3.21 Greece 1.67 3.06 Latvia 2.46 Belgium 1.40 2.21 Romania 1.29 2.18 Lithuania 2.00 2.17 Czech Republic 1.72 2.16 Finland 2.11 ECO LETTER NOW Poland 1.68 2.07 ACCESSIBLE FOR Croatia 1.02 1.76 PRIVATE CUSTOMER
Slide 12: Direct Mail/Media Post in Austria
1 DIRECT MAIL/MEDIA POST IN AUSTRIA H1 2023 Direct Mail/Media Post volumes (daily items) – Subdued advertising environment results in 10% volume decrease in H1 2023 Volumes – Structural decline in sub-segments (millions of items) (e.g. mail order business) – Consolidation effects in stationary retai
Slide 13: Parcel Business in Austria
1 PARCEL BUSINESS IN AUSTRIA H1 2023 parcel volumes (daily items) – Parcel growth in Austria up by 9% vs. H1 2022 Volumes – Growth reflects customer confidence in the (millions of items) quality leadership of Austrian Post – Disproportionate increase in volumes from Asia Ø +9.8% p.a. Ø +12.5% p.a. +
Slide 14: Investments into Sustainable Infrastructure
1 INVESTMENTS INTO SUSTAINABLE INFRASTRUCTURE CAPEX (EUR m) CAPEX H1 2023 160-180 Reduced CAPEX – 161 - Maintenance CAPEX of EUR 26.9m 152 Requirements from 143 - Growth CAPEX of EUR 20.7m 2024 onwards CAPEX forecast for 2023 - Expected level of EUR 160m-180m - Expansion of the Logistics Centre Vien
Slide 15: Expansion of Austrian Logistics Infrastructure
1 EXPANSION OF AUSTRIAN LOGISTICS INFRASTRUCTURE 2018 2019 2020 2021 2022 2023 2024 Sorting capacity (parcels/h, cumulative) LC Vienna LC Styria LC Upper Austria 138,000 129,000 LC Lower Austria Expansion LC Tyrol LC Vienna LC Vorarlberg 104,000 LC Salzburg 91,000 LC Styria 76,000 LC Lower Austria L
Slide 16: Final Steps of Expansion
1 FINAL STEPS OF EXPANSION Logistics Centre Logistics Centre Styria Upper Austria Expansion Expansion Logistics Centre Logistics Centre Tyrol Vienna New building Completion INVESTOR PRESENTATION Investor Relations Vienna, 10 August 2023 2023 16
Slide 17: Real Estate Management: Focus on Value-Creating Logistics
1 REAL ESTATE MANAGEMENT: FOCUS ON VALUE-CREATING LOGISTICS Operating real estate – Austria Operating real estate – International Inventory of optimal space for core business in own portfolio – Usable area 48,000 m2 Book value EUR 445m | Usable area 580,000 m2 – Base area 165,000 m2 Logistics centre
Slide 18: Staff Structure in Austria
1 STAFF STRUCTURE IN AUSTRIA Employees in the Austrian core business FTEs (average for the period) 21,926 490 17,619 -491 17,128 9,397 -351 Civil Servants -224 Employees Old CLA +84 Employees New CLA 9,868 9,952 12,039 3,454 3,230 New Collective Labour Agreement Old Collective Labour 4,297 3,946 Agr
Slide 19: Profitable Growth in Near Markets
2 PROFITABLE GROWTH IN NEAR MARKETS Focus on Parcel & Logistics CEE/SEE parcel market Parcel market in Türkiye Millions of parcels Millions of parcels 105 93 83 25 26 31 H1 2021 H1 2022 H1 2023 H1 2021 H1 2022 H1 2023 Locations with own logistics network Further locations Acquisition of Star Express
Slide 20: bank99: Growth as the Key to Success
3 BANK99: GROWTH AS THE KEY TO SUCCESS Positive momentum from improved interest rate environment 31.12.2022 30.6.2023 bank99 balance sheet total Top issues in 2023 as at 30.6.2023 Retail & digital bank EUR bn 3.2 3.2 Positioning Acc. Austrian GAAP − The bank that makes things easy and gives me more
Slide 21: Self-Service Solutions Are Very Popular with Post Customers
3 SELF-SERVICE SOLUTIONS ARE VERY POPULAR WITH POST CUSTOMERS Volumes 24/7 (millions of items) First Mile (send, return) Ø +15% p.a. Last Mile (receive) 23.4 21.6 17.6 11.2 678 10.4 Drop-off devices 13.8 8.4 11.3 6.6 70,428 8.3 5.2 Pick-up boxes 5.6 4.8 5.9 4.3 4.3 3.3 3.4 3.2 2.5 1.7 6.4 7.0 108,78
Slide 22: Pick-up Stations: New Use for Old Telephone Booths
3 PICK-UP STATIONS: NEW USE FOR OLD TELEPHONE BOOTHS Austrian Post will make use of the sites of A1 telephone booths Next generation of Post pick-up stations is in the pipeline About 1,000 locations possible in Austria Pilot sites planned in Vienna‘s 22nd district and Linz in 2023 24/7 availability
Slide 23: ESG Indicators H1 2023
ESG INDICATORS H1 2023 H1 2022 H1 2023 Change Environmental indicators1 CO2e emissions (Scope 1–3, Group) t CO2e 117,300 115,600 -1.4% CO2e emissions (Scope 1–3, Post AG) t CO2e 46,400 43,500 -6.2% CO2e emissions per transported tonne (Post AG) kg CO2e/t 140.5 135.8 -3.4% E-Vehicle fleet (Post AG) N
Slide 24: Expansion of the E-Vehicle Fleet and PV Systems in Progress
EXPANSION OF THE E-VEHICLE FLEET AND PV SYSTEMS IN PROGRESS Ramp-up curve for the e-vehicle fleet Photovoltaic facilities (number of vehicles) (output in cumulative MWp) 6.183 >20.0 >4,600 ~15.0 >3,800 3,039 2,418 ~8.0 H1 3,072 H1 4.3 2,600 3.0 H1 1.4 H1 4.4 3.5 2011 21 22 23e 24e 2030e 2014 21 22 2
Slide 25: Financial Indicators at a Glance
FINANCIAL INDICATORS AT A GLANCE H1 2022 H1 2023 Revenue (EUR m) 1,211.8 1,284.8 Positive revenue development (+6.0%) EBITDA margin (%) 14.8 14.7 EBITDA margin of 14.7% at the prior-year level EBIT margin (%) 7.5 7.4 EBIT margin of 7.4% Earnings/share (EUR) 0.83 1.13 Earnings per share increase of 3
Slide 26: Key Income Statement Indicators
KEY INCOME STATEMENT INDICATORS EUR m H1 2022 H1 2023 % ∆ Q2 2022 Q2 2023 Revenue 1,211.8 1,284.8 6.0% 73.0 610.4 620.2 Positive revenue development of Parcel & Logistics (+9.9%) Other operating income 59.2 38.0 -35.9% -21.2 30.8 19.4 and Retail & Bank (+41.3%), Raw materials, consumables and slight
Slide 27: Mail Division: Revenue Development in H1 2023
MAIL DIVISION: REVENUE DEVELOPMENT IN H1 2023 Revenue development EUR m -0.2% 599.5 598.1 Direct Mail/Media Post – Volume decline of 10% Q2 – Subdued advertising environment in sub-segments (furniture and mail 224.2 -2.2% 219.3 -3.6% order sector) – Consolidation in retail trade Letter Mail & Busine
Slide 28: Mail Division: Key Income Statement Indicators
MAIL DIVISION: KEY INCOME STATEMENT INDICATORS EUR m H1 2022 H1 2023 % ∆ Q2 2022 Q2 2023 Revenue 599.5 598.1 -0.2% -1.5 300.7 289.5 Volume decrease, positive postal rate effects • Letter Mail & Business Solutions 375.3 378.7 0.9% 3.4 187.7 180.6 • Direct Mail 161.7 155.3 -4.0% -6.4 80.2 76.1 Structu
Slide 29: Parcel & Logistics Division: H1 2023 Revenue Development
PARCEL & LOGISTICS DIVISION: H1 2023 REVENUE DEVELOPMENT Revenue development EUR m +9.9% (+6.8% excl. Parcel Türkiye) 628.4 Logistics Solutions 29.8 – Discontinuation of special pandemic-related logistics services from 572.0 Q2 previous years 34.6 -13.8% 91.7 -2.6% Parcel CEE/SEE 85.6 +7.1% Q2 – Vol
Slide 30: Parcel & Logistics Division: Key Income Statement Indicators
PARCEL & LOGISTICS DIVISION: KEY INCOME STATEMENT INDICATORS EUR m H1 2022 H1 2023 % ∆ Q2 2022 Q2 2023 Positive volume and revenue Revenue 572.0 628.4 9.9% 56.4 288.9 301.3 development • Parcel Austria 343.7 373.9 8.8% 30.2 172.8 188.8 • Parcel Türkiye 108.2 133.0 22.9% 24.8 57.9 49.5 Revenue negati
Slide 31: Retail & Bank Division: Revenue Development in H1 2023
RETAIL & BANK DIVISION: REVENUE DEVELOPMENT IN H1 2023 Revenue development EUR m +41.3% 76.5 Branch Services: EUR +1.2m 19.9 Q2 – Slight increase in retail goods revenue (mainly inflation-related +3.0% 54.2 price adjustments) +6.2% 18.7 Income from Financial Services: EUR +21.2m 56.6 Q2 – Increasing
Slide 32: Retail & Bank Division: Key Income Statement Indicators
RETAIL & BANK DIVISION: KEY INCOME STATEMENT INDICATORS EUR m H1 2022 H1 2023 % ∆ Q2 2022 Q2 2023 Rising net interest income Revenue 54.2 76.5 41.3% 22.4 27.7 39.1 improves bank99 revenue • Income from Financial Services 35.4 56.6 59.9% 21.2 18.0 29.1 • Branch Services 18.7 19.9 6.2% 1.2 9.7 10.0 Re
Slide 33: Solid Balance Sheet and Financing Structure
SOLID BALANCE SHEET AND FINANCING STRUCTURE EUR m 5,326.7 5,326.7 30.6.2023 Cash, money market/securities investments 95.6 118.5 Financial assets, investment property 640.8 Other financial liabilities Loans of EUR 225m and lease liabilities of EUR 403m (IFRS 16) 498.7 Liabilities/Other Financial ass
Slide 34: Operating Free Cash Flow at a Solid Level
OPERATING FREE CASH FLOW AT A SOLID LEVEL EUR m Operating free cash flow and free cash flow above previous year's level 139.9 +2.5 115.5 -26.9 -20.7 80.5 -14.3 Cash flow from operating Maintenance Other Operating Growth Acquisitions/ Free cash flow before activities excl. CBA CAPEX free CAPEX divest
Slide 35: Outlook for 2023
OUTLOOK FOR 2023 Market – Inflation and consumer behaviour remain to be the key factors impacting the market – Continued subdued economic environment and cautious consumer behaviour environment – Active product design and pricing are important – Targeted mid-single-digit Group revenue growth – Mail:
Slide 36: Contact
CONTACT Austrian Post Financial calendar 2023/2024 Investor Relations 14 November 2023 Interim Report Q1-3 2023 Rochusplatz 1, 1030 Vienna 13 March 2024 Annual Report 2023 Website: post.at/investor 18 April 2024 Annual General Meeting E-mail: investor@post.at 26 April/02 May 2024 Ex-day/Dividend pay