Osterreichische Post Ag · VIE:POST
Osterreichische Post — Austrian Post — FY2009 Earnings Presentation
29 slides from Osterreichische Post's earnings presentation, Mar 16, 2010
Slide 1: Austrian Post 2009 financial year Investor Presentation
Austrian Post 2009 financial year Investor Presentation March 16, 2010 Georg Pölzl (CEO), Rudolf Jettmar (CFO)
Slide 2: International trends and their implications in 2009
International trends and their implications in 2009 Substitution of letters Complete market Ongoing Internet by e-Mail liberalisation boom Addressed letter mail New Postal Market Act in Parcel volumes in Austria, volumes in the top 5 Austria m items European markets, bn items More flexibility as o
Slide 3: Development of Austrian Post in 2009: An overview
Development of Austrian Post in 2009: An overview Revenue -3.5% or Difficult market environment 2009: EUR 2,356.9m EUR -84.5m Recession and electronic substitution of letters burden the postal market EBIT -11.9% or Volume and price decline EUR 149.4m EUR -20.1m Operating cash -17.4% or Cost cutt
Slide 4: Revenue development 2009
Revenue development 2009 Quarterly revenue decline in a year-on-year Revenue 2009 comparison (%)1) down by EUR 84.5m Q1 Q2 Q3 Q4 -3.5% 2.441,4 2.356,9 -2.4% Average -3.5% -3.2% -3.5% -4.8% Revenue development by division (EUR m) 2) Parcel & Branch Mail Logistics Network -2.7 -17.6 (-1.4%) (-2.2%) -6
Slide 5: Mail Division: Revenue development 2008/2009
Mail Division: Revenue development 2008/20091) Mail Organic growth of: +1.3% Economic crisis accelerates +9.0% electronic substitution of letters +8.3% Revenue decline of 4.3% in the recessionary year 2009 +5.9% Development virtually unchanged throughout the year +0.6% Q1 '09 Q2 '09 Q3 '09 Q4
Slide 6: Mail: Selected volume trends 2003-2009
Selected volume trends of Mail Austrian Post 2003 - 2009 Letters and newspapers in Austria Economic crisis accelerated the 140 % substitution of letters by electronic 103 105 105 110 110 Media Post 120 100 100 +/-0% media 100 102 102 80 60 100 100 98 100 96 Letter Mail Cost reduction programmes
Slide 7: Mail: Revenue of selected areas
Revenue of selected areas Mail Letter Mail in Austria 1) Revenue decline throughout 2009 +0.4% +0.1% +0.7% Q1 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Ongoing electronic substitution Q2 '08 Q3 '08 Q4 '08 expected -1.4% New business services established -4.0% (Scanning/Uniqa) Average -5.1% -4.8% -5.7% -
Slide 8: Parcel & Logistics: Revenue development
Parcel & Parcel & Logistics: Revenue development1) Logistics Acquisition-related growth +1.3% Economic downturn burdened +10.6% volume and price development +9.9% in the international parcel and logistics market +4.5% Improved revenue development at Austrian Post in the second +1.9% half of 2009
Slide 9: Parcel & Logistics: Selected volume trends 2005-2009
Selected volume trends of Parcel & Austrian Post 2005 - 2009 Logistics Western Europe Western Europe, trans-o-flex Transport sector in general: decline in % transport volumes of up to 10% 120 103 103 100 101 100 100 Western Excess capacity leads to price pressure in all Europe +3% 80 logistics s
Slide 10: Parcel & Logistics: Revenue of selected areas
Parcel & Revenue of selected areas Logistics Germany (trans-o-flex)1) Recession-related reduction in price levels +4.0% led to negative revenue development in +2.3% +0.5% 2009 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '08 Q2 '08 Q3 '08 Revenue decline of -7.0% better than -3.0% overall performance o
Slide 11: Branch Network Division: Revenue and structure
Branch Network Division: Revenue and structure Branch Network External sales 1) Internal sales 2) Branch network structure EUR m EUR m -1.4% -10.2% 206.3 1,667 192.2 189.6 1,512 185.2 210 535 Postal partners 1,302 Company- 1,132 operated postal service points 2008 2009 2008 2009 31.12.2008 01.03.201
Slide 12: Branch Network: Selected volume trends 2005-2009
Selected volume trends of Branch Austrian Post 2005 - 2009 Network Key retail products Mobile/Internet/ % Fixed-line Market saturation for telecom products 165 175 146 +13% counteracted by Internet offering 150 128 117 125 100 High competitive intensity in Austria for 100 Savings and 112 deposit
Slide 13: Strategy of Austrian Post based on growth opportunities and improved efficiency
Strategy of Austrian Post based on growth opportunities and improved efficiency 1 2 Exploiting growth opportunities and innovations Defending of Growing in Growth strategy for Parcel & Logistics market leadership selected markets in the core Further promotion of business services business in the
Slide 14: Savings and efficiency improved in 2009 (1): Operating staff costs
Savings and efficiency improved in 2009 (1): Operating staff costs Collective wage Reduction in overall New collective Transfer to police increase staff costs wage agreement force Staff reduced by 1,500 employees Possibility for civil 1,081 employees working under new servants to transfer to 18 mont
Slide 15: Savings and efficiency improved in 2009 (2): Operating expenses
Savings and efficiency improved in 2009 (2) Operating expenses Targeted savings Savings in operating Savings in 2009 of EUR 30m expenses of EUR 39.6m Savings for transport services Reduced expenses for international postal providers Savings achieved for consulting, communications, IT and maint
Slide 16: Earnings development 2005 - 2009
Earnings development 2005 - 2009 Earnings burdened by lower revenue of 89.5m EBITDA (EUR m) EBIT (EUR m) EBITDA margin (%) EBIT margin (%) EUR -52.5m EBITDA EBIT -16.3% 350 350 321.7 300 292.7 300 269.2 250 250 EUR -20.1m 223.8 231.7 -11.9% 200 13.2% 13.3% 13.2% 200 12.6% 11.4% 162.8 169.5 149.4 150
Slide 17: Domestic and international subsidiaries
Domestic and international subsidiaries Austrian Post is present in the European market with 19 operating subsidiaries in the mail and parcel & logistics segments in 11 countries Mail: feibra (A) Kolos (SK) feibra (H) Weber Escal (HR) NL Austrian Post Scanpoint (A/SK) International (D)
Slide 18: Performance of international subsidiaries
Performance of international subsidiaries The top priority is ensuring the profitable growth of subsidiaries Mail Division: Mail: • South East and Eastern Europe: Expanded Kolos (SK) business and improved market position feibra (A) feibra (H) Weber Escal (HR) • meiller direct: EBIT 2009: EUR
Slide 19: Key income statement indicators
Key income statement indicators 2009 EUR m 2008 2009 Q4 2008 Q4 2009 vs. 2008 Revenue decrease of 3.5%, Revenue 2,441.4 2,356.9 -3.5% 656.8 633.7 or EUR 84.5m Raw materials, consumables and -778.2 -766.1 -1.6% -214.1 -202.8 services used Comparison of staff costs Staff costs -1,119.2 -1,139.3 1.8% -
Slide 20: Provisions in 2009
Provision in 2009 Total staff-related provisions remained relatively constant Provision for employee Reduced by EUR 22.2m to EUR 285.6m in underutilisation 2009 Initial provisions of EUR 41.5m allocated for about 280 employees who will transfer to the police force Integration of about 100 employ
Slide 21: Key divisional figures
Key divisional figures Change Q4 2008 Q4 2009 Change EUR m 2008 2009 % EUR m EUR m EUR m % Revenue (external sales) 2,441.4 2,356.9 -3.5% -84.5 656.8 633.7 -3.5% Mail 1,460.0 1,396.8 -4.3% -63.2 393.2 378.0 -3.8% Parcel & Logistics 785.9 768.4 -2.2% -17.6 210.8 206.9 -1.8% Branch Network 192.2
Slide 22: Mail Division – Key figures
Mail Division – Key figures Change Q4 Q4 EUR m 2008 2009 % EUR m 2008 2009 Revenue down by EUR 63.2m due to Revenue (external sales) 1,460.0 1,396.8 -4.3% -63.2 393.2 378.0 recession and electronic Letter Mail 783.7 741.7 -5.4% -41.9 211.4 197.7 substitution Revenue drop in the Infomail Infomail
Slide 23: Parcel & Logistics Division – Key figures
Parcel & Logistics Division – Key figures Change Q4 Q4 EUR m 2008 2009 % EUR m 2008 2009 Premium parcel revenue Revenue (external sales) 785.9 768.4 -2.2% -17.6 210,8 206.9 of EUR 623.9m: recession- Internal sales 30.1 24.2 -19.4% -5.8 6.9 6.5 related revenue decrease of 5.4% Total revenue 1) 816.0
Slide 24: Branch Network Division – Key figures
Branch Network Division – Key figures Change Q4 Q4 EUR m 2008 2009 % EUR m 2008 2009 Revenue: slight decline of telecommunication products Revenue (external sales) 192.2 189.6 -1.4% -2.7 51.9 48.4 and financial services. Internal sales 206.3 185.2 -10.2% -21.1 55.2 48.4 Internal sales Structural cha
Slide 25: Solid balance sheet structure
Solid balance sheet structure Assets: Equity and liabilities: Increase in cash and cash equivalents and Low level of financial liabilities at EUR 127m securities to EUR 351m Cash and cash 1,875 1,875 equivalents 1,775 1,775 248 149 Securities 341 127 Financial liabilities 294 351 Financial assets 93
Slide 26: Cash generation and use in 2009
Cash generation and use in 2009 Operating cash flow before Cash flow use in 2009 changes in working capital Increase in free cash flow to EUR 236.9m due to reduced Operating cash flow before investments (EUR 210.3m in 2008) changes in working capital down EUR 41.1m due to reduced Higher free cash fl
Slide 27: Medium-term goals and outlook for 2010 (1)
Medium-term goals and outlook for 2010 (1) Medium-term goals Outlook 2010 Revenue Medium-term revenue growth of Group revenue in 2010 1-2% annually down 1-2% from 2009 Goal is to achieve 6-9% annual Revenue decline in the Mail Division growth in the parcels segment in in 2010, increased parcel r
Slide 28: Medium-term goals and outlook for 2010 (2): Dividend
Medium-term goals and outlook for 2010 (2) Dividend Dividend policy: payout ratio of at least 75% of group net profit Dividend for the 2009 financial year Targeted sustainable dividend of EUR 1.50 of EUR 1.50/share 1) per share Earnings/share (EUR) Free cash flow/share 2) (EUR) Dividend/share (E
Slide 29: Contact
Contact Austrian Post Financial calendar 2010 Investor Relations March 16, 2010 Annual results 2009 Postgasse 8, 1010 Vienna April 12, 2010 Record date for participating in the Investor Relations Website: www.post.at/ir/en Annual General Meeting E-Mail: investor@post.at April 22, 2010 Annual General