Slide 1: Austrian Post Investor Presentation H1 2015
AUSTRIAN POST INVESTOR PRESENTATION H1 2015 Georg Pölzl/CEO, Walter Oblin/CFO Vienna, August 6, 2015
Slide 2: 1. Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results H1 2015 4. Outlook 2015 INVESTOR PRESENTATION I Investor Relations I Vienna, August 6, 2015 2
Slide 3: Trends on the Postal and Logistics Market
TRENDS ON THE POSTAL AND LOGISTICS MARKET THE MARKET ENVIRONMENT REMAINS CHALLENGING AUSTRIAN LETTER MAIL MARKET Negative basic trend of e-substitution is intensifying AUSTRIAN DIRECT MAIL MARKET Differentiated development of individual customer segments AUSTRIAN PARCEL MARKET Growing competition; o
Slide 4: Highlights H1 2015
HIGHLIGHTS H1 2015 +0.6% • Slight revenue increase of 0.6% to EUR 1,178.9m (+0.6% in Q2) REVENUE • Decline in the mail business (-0.4%) offset by parcel growth (+2.4%) H1 2014 H1 2015 -2.3% • EBIT down 2.3% to EUR 96.5m (+4.9% in Q2) EARNINGS • Higher earnings per share of EUR 1.14 H1 2014 H1 2015 +
Slide 5: Slight Revenue Improvement in H1 2015
SLIGHT REVENUE IMPROVEMENT IN H1 2015 REVENUE DEVELOPMENT EUR m +0.6% 1,171.9 1,178.9 GROUP: Revenue in H1 and Q2 up slightly by 0.6% year-on-year MAIL & BRANCH NETWORK: 740.9 738.0 • Slight revenue decline of -0.4% in H1 -0.4% (-0.5% in Q2) • Positive revenue effects due to higher postal rates effe
Slide 6: EBIT Decline in H1, Rise in Q2
EBIT DECLINE IN H1, RISE IN Q2 EBIT DEVELOPMENT GROUP: EUR m • EBIT down -2.3% in H1 (+4.9% in Q2) -2.3% MAIL & BRANCH NETWORK: • EBIT improvement of EUR +6.5m in H1 2015 98.8 (EUR +7.9m in Q2) +0.4 96.5 +6.5 • Q2 2014 reported negative special effects of -9.2 EUR -4.9m (impairment on goodwill) Q2 Q
Slide 7: 2. Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results H1 2015 4. Outlook 2015 INVESTOR PRESENTATION I Investor Relations I Vienna, August 6, 2015 7
Slide 8: Clear Strategic Priorities
CLEAR STRATEGIC PRIORITIES DEFENDING MARKET LEADERSHIP PROFITABLE GROWTH IN 1. IN THE CORE BUSINESS 2. SELECTED MARKETS Safeguarding of market position in a competitive Performance enhancement and leveraging of market environment potential against the backdrop of strong competition ENHANCING EFFICIE
Slide 9: 1. Mail & Branch Network in Austria
1. MAIL & BRANCH NETWORK IN AUSTRIA INITIATIVES DIGITAL STRATEGY • Expansion of direct mail business to the digital world • Services of Austrian Post: scanning, document and address management, profiling, e-letters CORE BUSINESS IN AUSTRIA Increased e-substitution – in the middle of the predicted ra
Slide 10: 1. Parcel & Logistics in Austria
1. PARCEL & LOGISTICS IN AUSTRIA INITIATIVES NEW DELIVERY SOLUTIONS • Ongoing roll-out of innovative 24/7 self-service solutions • Same day and next day delivery • Flexible delivery window CORE BUSINESS IN AUSTRIA Strong market position with private customers FOOD LOGISTICS (77%) and business custom
Slide 11: 2. Growth in Selected Markets
2. GROWTH IN SELECTED MARKETS ACTIVE IN 12 MARKETS – GROWTH FOCUS IN PARCEL & LOGISTICS CEE/SEE Parcel subsidiaries: • Positive volume development, particularly in the private customer field – expansion of 2C network • Strong competition and price pressure Mail subsidiaries: • Difficult market envir
Slide 12: 2. Promising Turkish Market – Aras Kargo
2. PROMISING TURKISH MARKET – ARAS KARGO INITIATIVES HUBTIMISATION • Productivity increase in distribution centres, at 5 hubs already concluded • Implementation of new safety measures CURRENT DEVELOPMENT • 25% stake in Turkey‘s second largest parcel service SHOPTIMISATION provider, call option for f
Slide 13: 3. Staff Structure in Austria
3. STAFF STRUCTURE IN AUSTRIA FULL-TIME EQUIVALENTS IN THE CORE BUSINESS IN AUSTRIA (average for the period) Change H1 2014/2015: 21,003 - 463 FTE 20,218 – 625 Civil servants 20,064 1,891 19,417 – 357 Old CWA 2,490 18,618 18,155 3,350 + 518 New CWA 3,858 3,967 = – 463 employees 4,486 7,883 7,247 6,7
Slide 14: 4. Customer Orientation and Innovation
4. CUSTOMER ORIENTATION AND INNOVATION INNOVATIVE 24/7 SELF-SERVICE SOLUTIONS Franking machines & Pick-up stations Pick-up boxes drop-off boxes 276 self-service zones 170 pick-up stations 10,757 pick-up boxes Ongoing Roll-Out INVESTOR PRESENTATION I Investor Relations I Vienna, August 6, 2015 14
Slide 15: 4. Customer Orientation and Innovation
4. CUSTOMER ORIENTATION AND INNOVATION INTERACTION FOR ENHANCED CUSTOMER COMFORT Post App Parcel redirection • E-notification Since August 2014 • Parcel redirection redirection to… • Track & trace, advance • nearby branch office parcel notice and info • nearby pick-up station storage • designated ne
Slide 16: 3. Group Results H1 2015
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS H1 2015 4. Outlook 2015 INVESTOR PRESENTATION I Investor Relations I Vienna, August 6, 2015 16
Slide 17: Financial Indicators H1 2015 at a Glance
FINANCIAL INDICATORS H1 2015 AT A GLANCE H1 2014 H1 2015 Revenue (EUR m) 1,171.9 1,178.9 Revenue slightly above prior-year level (+0.6%) EBITDA margin 12.4% 11.9% EBITDA margin of 11.9% within targeted range EBIT margin 8.4% 8.2% Ongoing high profitability Earnings/share (EUR) 1.08 1.14 Slight rise
Slide 18: Key Income Statement Indicators
KEY INCOME STATEMENT INDICATORS Change EUR m H1 2014 H1 2015 % abs. Q2 2014 Q2 2015 Revenue 1,171.9 1,178.9 0.6% 7.0 573.5 577.0 Slight revenue increase of 0.6% Other operating income 32.5 32.8 0.9% 0.3 15.9 16.4 Raw materials, consumables -362.8 -364.0 -0.3% -1.1 -179.0 -179.5 and services used Sta
Slide 19: Mail & Branch Network Division: Revenue Development H1 2015
MAIL & BRANCH NETWORK DIVISION: REVENUE DEVELOPMENT H1 2015 LETTER MAIL & MAIL SOLUTIONS (EUR m) DIRECT MAIL/MEDIA POST (EUR m) • Intensified e-substitution – current decline of letter • Higher volume of unaddressed mail items (mainly mail volume of about 4% retail), drop in addressed mail • Positiv
Slide 20: Mail & Branch Network Division: Key Income Statement Indicators
MAIL & BRANCH NETWORK DIVISION: KEY INCOME STATEMENT INDICATORS Change EUR m H1 20141 H1 2015 % abs. Q2 20141 Q2 2015 Revenue 740.9 738.0 -0.4% -2.9 362.2 360.5 Solid revenue development, only slight • Letter Mail & Mail-Solutions 397.5 400.7 0.8% 3.1 190.6 194.3 decline • Direct Mail 211.4 210.2 -0
Slide 21: Parcel & Logistics Division: Revenue Development H1 2015
PARCEL & LOGISTICS DIVISION: REVENUE DEVELOPMENT H1 2015 REVENUE (EUR m), REGIONAL MIX (%) +2.4% 430.5 440.9 CEE/SEE: +9.9% (Q2: +8.8%) CEE/SEE +9.9% • Strong revenue growth, high price pressure 8% 9% • Good development in Slovakia and Hungary Austria +8.3% AUSTRIA: +8.3% (Q2: +8.7%) 35% 37% • Solid
Slide 22: Parcel & Logistics Division: Key Income Statement Indicators
PARCEL & LOGISTICS DIVISION: KEY INCOME STATEMENT INDICATORS Change EUR m H1 20141 H1 2015 % abs. Q2 20141 Q2 2015 Revenue 430.5 440.9 2.4% 10.3 211.0 216.4 Revenue up 2.4% in H1 2015 • Premium 323.2 327.6 1.4% 4.5 158.3 160.4 • Standard 90.2 95.6 6.0% 5.4 44.3 47.2 • Other Parcel Services 17.1 17.6
Slide 23: Solid Balance Sheet Structure
SOLID BALANCE SHEET STRUCTURE BALANCE SHEET AS AT JUNE 30, 2015 EUR m 1,604.8 1,604.8 Other financial liabilities Cash and cash/ 18.6 Financial liabilities of only equivalents/securities 319.3 Liabilities/ EUR 19m 425.9 Other1 Financial assets/ Investment property1 126.2 Liquid financial resources o
Slide 24: Robust Cash Flow H1 2015
ROBUST CASH FLOW H1 2015 CASH FLOW DEVELOPMENT EUR m Sale of former corporate headquarters leads to positive cash flow effect of plus EUR 60m Increased operating cash flow due to lower income tax payments 151.8 +62.0 137.7 124.4 -3.3 107.7 -10.0 -32.0 Gross cash Cash flow CAPEX Other Free cash flow
Slide 25: 4. Outlook 2015
1. Highlights and Overview 2. Strategy Implementation 3. Group Results H1 2015 4. OUTLOOK 2015 INVESTOR PRESENTATION I Investor Relations I Vienna, August 6, 2015 25
Slide 26: Outlook 2015
OUTLOOK 2015 • Decline in addressed mail volume in the middle of the predicted range of Market minus 3-5% • Differentiated volume development for direct mail items environment • Competition and price pressure in the parcel business; positive impetus in the private customer segment, little impetus fo
Slide 27: Contact
CONTACT Austrian Post Financial calendar 2015/2016 Investor Relations November 12, 2015 Interim report Q1-3 2015 Haidingergasse 1, 1030 Vienna March 10, 2016 Annual Results 2015 Website: www.post.at/ir April 14, 2016 Annual General Meeting E-mail: investor@post.at April 26/28, 2016 Ex-dividend day/D
Slide 28: If it really counts, rely on Austrian Post
IF IT REALLY UNTS; RELY ON AUSTRIAN POST.