Slide 1: Investor Presentation H1 2021
AUSTRIAN POST Investor Presentation H1 2021 Walter Oblin, CFO Vienna, 12 August 2021 INVESTOR PRESENTATION Investor Relations Vienna, 12 August 2021
Slide 2: Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results H1 2021 4. Outlook 2021 INVESTOR PRESENTATION Investor Relations Vienna, 12 August 2021 2
Slide 3: Austrian Post at a Glance
AUSTRIAN POST AT A GLANCE Mail Parcel & Logistics Retail & Bank Revenue mix H1 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 Parc
Slide 4: Continuous Structural Change
CONTINOUS STRUCTURAL CHANGE Consistent strategy implementation enables balanced positioning Mail and parcel as strong pillars Revenue in EUR m 891.4 981.1 981.9 1,260.4 100% 14.4% 28.7% 37.3% 49.4% Parcel & Logistics 76.6% Mail Retail & Bank 66.9% 59.8% 47.9% 9.0% 4.4% 2.9% 2.7% H1 2010 1 H1 2019 H1
Slide 5: H1 2021 Overview
H1 2021 OVERVIEW – Rebound of business activities of many customer segments COVID-19 – Ongoing negative impacts due to restrictions and uncertainties Mail Parcel & Logistics Retail & Bank – Volatile development – Good volume development – Acquisition of ING retail – Continuing decline of in all regi
Slide 6: Good Revenue Development in H1 2021
GOOD REVENUE DEVELOPMENT IN H1 2021 Organic and inorganic growth Revenue development EUR m Group: +28.4% to EUR 1,260.4m +28.4% Good revenue development in the mail and parcel business (+12.0% excl. Aras Kargo) Mail: +3.0% to EUR 608.2m 1,260.4 – Positive revenue development of +2.8% in Letter Mail
Slide 7: Excellent Earnings Result Due to Strong Parcel Business
EXCELLENT EARNINGS RESULT DUE TO STRONG PARCEL BUSINESS EBIT development EUR m Group: EUR +55.2m to EUR 103.4m +114.5% Operating earnings up as a result of parcel growth Mail: +12.6% to EUR 82.4m 103.4 – Positive earnings development based on improved revenue in the Letter Mail and Direct Mail segme
Slide 8: Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results H1 2021 4. Outlook 2021 INVESTOR PRESENTATION Investor Relations Vienna, 12 August 2021 8
Slide 9: INVESTOR PRESENTATION Investor Relations Vienna, 12 August 2021
INVESTOR PRESENTATION Investor Relations Vienna, 12 August 2021 9
Slide 10: Letter Mail
1 LETTER MAIL Letter Mail in H1 2021 Further decline of letter mail volumes compared with weak first half year of previous Volumes (millions of items) year due to lockdown, now at lower level: H1 2021 -3% (after -9% in H1 2020) Ø -4.6% 2020-2021 Letter Mail volumes in Austria -6.8% 939 931 910 833 +
Slide 11: Direct Mail/Media Post in Austria
1 DIRECT MAIL/MEDIA POST IN AUSTRIA Direct Mail/Media Post H1 2021 Direct mail and media post volumes show slight recovery after sharp decline in previous year: Volumes (millions of items) H1 +2% (after -17% in H1 2020) Ø -2.9% 2020-2021 Direct Mail/Media Post volumes -11.3% in Austria 5,108 4,883 4
Slide 12: Good Growth in the Austrian Parcel Business
1 GOOD GROWTH IN THE AUSTRIAN PARCEL BUSINESS Parcel business in H1 2021 Growth slowed down after high increases in the prior-year, +20% in H1 (after +36% in Volumes (millions of parcels) H1 2020) +230% 2020-2021 Parcel business volumes in +30% Austria 166 +44% 127 +34% EUR +33% 668m 97 108 Revenue
Slide 13: Investments in the Logistics Infrastructure
1 INVESTMENTS IN THE LOGISTICS INFRASTRUCTURE Logistics centre Tyrol Capacity expansion is the top priority: 104,000 m2 property – Maintenance CAPEX of EUR 25.9m in H1 2021 – Growth CAPEX (incl. properties) of EUR 21.0m in H1 2021 Ongoing implementation of the investment programme: +50% sorting capa
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 at LC Styria Kalsdorf the end of 2021: 90,000 parcels/h Phase 1 LC Salzburg Thalgau LC Vorarlberg Sorting capacity at the end of
Slide 15: Value Investments: >1 Million Square Metres Usable Space
VALUE INVESTMENTS: >1 MILLION SQUARE METRES USABLE SPACE OWNED BY AUSTRIAN POST 1 2 Logistics centres in Austria Branches and others – Usable area 233,000 m2 – Usable area 272,000 m2 22% 26% – Property area 1,070,000 m2 – Book value EUR 131m – Book value EUR 233m Logistics space international Rentin
Slide 16: Staff Structure in Austria
1 STAFF STRUCTURE IN AUSTRIA Full-time equivalents in the Austrian core business FTEs (average for the period) Increased demand for logistics staff due to higher parcel volumes 21,926 21,003 490 20,218 20,064 +475 19,417 1.891 18,790 18,233 2,490 17,692 17,463 17,644 17,452 17,432 17,907 3,350 3,858
Slide 17: 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 18: Ongoing Growth in International Parcel Markets
2 ONGOING GROWTH IN THE INTERNATIONAL PARCEL MARKETS OF AUSTRIAN POST Parcel volumes of Turkey & CEE/SEE (millions of items) 250 190 185 172 149 139 140 Turkey: Continuing positive 130 206 116 113 development based on solid volume 156 growth 139 150 112 120 115 106 CEE/SEE: E-commerce as the 95 92 d
Slide 19: Aras Kargo
2 ARAS KARGO Profile of Aras Kargo Financial indicators – Top player in Turkey‘s parcel market – H1 2021 revenue: TRY 1,526m (EUR 161m) – About 6,500 employees (FTEs), 47 logistics sites – Full consolidation as at 25 August 2020 – 900 branches and 5,000+ vehicles – Company with strong balance sheet,
Slide 20: bank99 Acquires ING Retail Business in Austria
3 BANK99 ACQUIRES ING RETAIL BUSINESS IN AUSTRIA – Acquisition of ING retail business in Austria: current accounts, consumer and mortgage loans, securities investments – Balance sheet total of about EUR 1.7 billion will be taken over – Mortgage loans of about EUR 1bn – Consumer loans of about EUR 0.
Slide 21: ING Is an Optimal Strategic Addition: Retail Plus Digital
3 ING IS AN OPTIMAL STRATEGIC ADDITION: RETAIL PLUS DIGITAL bank99 AG ING in Austria (retail business) Complementary customer structure from a regional and demographic perspective More than 80,000 customers More than 100,000 customers Complementary strengths in the product structure Current accounts
Slide 22: Self-Service Zones
3 SELF-SERVICE ZONES: INNOVATIVE SERVICES FOR SENDING AND RECEIVING H1 2021: >2.3m items H1 2021: >2.8m items H1 2021: >4.5m items 55,269 pick-up boxes 91,101 compartments in pick-up 464 drop-off boxes stations June 2012 June 2021 November 2013 June 2021 January 2012 June 2021 H1 2021 vs. H1 2020 Nu
Slide 23: INVESTOR PRESENTATION Investor Relations Vienna, 12 August 2021
INVESTOR PRESENTATION Investor Relations Vienna, 12 August 2021 23
Slide 24: Sustainable Strategic Targets 2030
SUSTAINABLE STRATEGIC TARGETS 2030 Economy & Customers Continuation of growth trend Revenue of EUR 3bn in 2030 based on steady parcel growth Environment & Climate Decarbonisation of logistics: – 40% reduction in absolute carbon emissions – 70% decrease in specific carbon emissions – 100% carbon-free
Slide 25: There Is Much Green in the Yellow Post
THERE IS MUCH GREEN IN THE YELLOW POST Ecological advantage of online shopping Carbon neutral delivery of Austrian Post since 2011 compared to stationary shopping Source Oliver Wyman, 2021: Savings of 1,155 grammes CO2e per product E-vehicle fleet ramp up curve (vehicles in Austria) 2,500 2,047 118
Slide 26: Turkey: Austrian Post Plants 68,000 Trees
TURKEY: AUSTRIAN POST PLANTS 68,000 TREES Tree planting campaign in Turkey as part of the World Day to Combat Desertification - In cooperation with the Aegean Forest Foundation and the Austrian Post subsidiary Aras Kargo - 68,000 trees in total INVESTOR PRESENTATION Investor Relations Vienna, 12 Aug
Slide 27: Group Results H1 2021
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS H1 2021 4. Outlook 2021 INVESTOR PRESENTATION Investor Relations Vienna, 12 August 2021 27
Slide 28: Financial Indicators at a Glance
FINANCIAL INDICATORS AT A GLANCE H1 2020 H1 2021 Revenue (EUR m) 981.9 1,260.4 Good revenue development of +28.4% in H1 2021 Improved EBITDA margin due to improved parcel EBITDA margin (%) 11.4 14.6 business EBIT margin (%) 4.9 8.2 Positive development of EBIT margin in H1 2021 Earnings per share up
Slide 29: Key Income Statement Indicators
KEY INCOME STATEMENT INDICATORS EUR m H1 20201 H1 2021 % ∆ Q2 20201 Q2 2021 Good development in mail and parcel, positive special effects as a Revenue 981.9 1,260.4 28.4% 278.5 479.1 614.3 result of one-off mailings and logistics services Other operating income 28.4 43.1 51.9% 14.7 15.0 20.9 Raw mat
Slide 30: Mail Division: H1 2021 Revenue Development
MAIL DIVISION: H1 2021 REVENUE DEVELOPMENT Letter Mail & Business Solutions (EUR m) Direct Mail/Media Post (EUR m) – Revenue increase of 2.8% – Revenue increase of 3.3% – Ongoing decline of Austrian Letter Mail volumes (-3%) – Positive volume development in Austria of +2% in H1 2021, after higher re
Slide 31: Mail Division: Key Income Statement Indicators
MAIL DIVISION: KEY INCOME STATEMENT INDICATORS EUR m H1 2020 H1 2021 % ∆ Q2 2020 Q2 2021 Solid revenue development of Revenue 590.6 608.2 3.0% 17.6 273.1 297.3 Letter Mail against the backdrop of an ongoing • Letter Mail & Business Solutions 381.3 391.9 2.8% 10.6 178.0 186.4 volume decline • Direct
Slide 32: Parcel & Logistics Division: H1 2021 Revenue Development
PARCEL & LOGISTICS DIVISION: H1 2021 REVENUE DEVELOPMENT Revenue development Parcel & Logistics Division: +70.7% EUR m E-commerce development continues, Aras Kargo drives +70.7% revenue increase Austria: EUR +86.2m 628.1 – Slower pace of growth following high increases in the prior-year quarter Turk
Slide 33: Parcel & Logistics Division: Key Income Statement Indicators
PARCEL & LOGISTICS DIVISION: KEY INCOME STATEMENT INDICATORS EUR m H1 2020 H1 2021 % ∆ Q2 2020 Q2 2021 Continuing organic and Revenue 367.9 628.1 70.7% 260.2 193.4 304.4 inorganic growth in the • Premium 212.1 424.8 100.3% 212.7 112.0 207.6 parcel business • Standard 122.1 153.6 25.8% 31.5 65.3 73.0
Slide 34: Retail & Bank Division: H1 2021 Revenue Development
RETAIL & BANK DIVISION: H1 2021 REVENUE DEVELOPMENT Revenue development Retail & Bank Division: +18.9% EUR m Launch of bank99 in April 2020 +18.9% Result from Financial Services: EUR +6.4m – Revenue of EUR 12.5m in H1 2021 34.0 Branch Services: EUR -1.0m 28.6 – Revenue with retail goods and branch p
Slide 35: Retail & Bank Division: Key Income Statement Indicators
RETAIL & BANK DIVISION: KEY INCOME STATEMENT INDICATORS EUR m H1 2020 H1 2021 % ∆ Q2 2020 Q2 2021 Decline due to discontinuation Revenue 28.6 34.0 18.9% 5.4 15.5 17.3 of service fees from the former banking partner in • Branch Services 22.4 21.5 -4.4% -1.0 11.2 10.9 2020 • Result from Financial Serv
Slide 36: Solid Balance Sheet and Financing Structure
SOLID BALANCE SHEET AND FINANCING STRUCTURE EUR m ASSETS EQUITY & 2,786.3 2,786.3 Cash, money market/ 2,680.2 Liquid financial LIABILITIES 2,680.2 securities investments 175.4 Includes lease liabilities of 218.9 89.1 resources of EUR 323.0 Other financial assets, 175m Other financial 351.6 EUR 296m
Slide 37: Strong Operating Free Cash Flow H1 2021
STRONG OPERATING FREE CASH FLOW H1 2021 EUR m Primarily customers Operating free cash flow Free cash flow before money market and 281.5 deposits of bank99 of EUR 139.1m securities investments of EUR 117.8m +162.2 139.1 -119.3 117.8 -25.9 +2.8 -18.4 -2.6 -0.2 Cash flow Core banking Cash flow from Mai
Slide 38: Outlook
1. Highlights and Overview 2. Strategy Implementation 3. Group Results H1 2021 4. OUTLOOK 2021 INVESTOR PRESENTATION Investor Relations Vienna, 12 August 2021 38
Slide 39: Outlook 2021
OUTLOOK 2021 Market environment – 2021 continues to be impacted by the pandemic and government-imposed measures – Assumption of further economic recovery during the second half of the year – Business development influenced by high volatility – Closing of ING retail business expected by the end of 20
Slide 40: Contact
CONTACT Austrian Post Financial Calendar 2021/2022 Investor Relations 11 November 2021 Interim Report Q1-3 2021 Rochusplatz 1, 1030 Vienna 11 March 2022 Annual Results 2021 Website: www.post.at/ir 21 April 2022 Annual General Meeting E-mail: investor@post.at 3 May/5 May 2022 Ex-day/Dividend Payment