Slide 1: Austrian Post Q1 2014 Investor Presentation
AUSTRIAN POST Q1 2014 INVESTOR PRESENTATION Walter Oblin/CFO Vienna, May 8, 2014
Slide 2: Highlights and overview; Group results Q1 2014; Outlook 2014
1. Highlights and overview 2. Group results Q1 2014 3. Outlook 2014 INVESTOR PRESENTATION Q1 2014 I Investor Relations I Vienna, May 8, 2014 2
Slide 3: Highlights Q1 2014
HIGHLIGHTS Q1 2014 Slight revenue decline of 0.7% as expected Solid growth in the parcel business (+3.7%) 1 Revenue Drop of 3.1% in mail revenue due e-substitution and lower direct mail volume EBIT decline by 2.6% after strong prior-year quarter 2 Earnings Resolute efficiency enhancement a
Slide 4: Market Environment 2014
MARKET ENVIRONMENT 2014 Letter Mail Trend towards declining mail volumes due to e-substitution and new e-government solutions Austria Less impetus from elections than in 2013 Direct Mail Restrained advertising activities Traditional mail order companies and retail stores under Austria struct
Slide 5: Stable Revenue and Earnings Development
STABLE REVENUE AND EARNINGS DEVELOPMENT REVENUE DEVELOPMENT REVENUE DISTRIBUTION EBIT DEVELOPMENT EUR m Q1 2014 by division EUR m avg.+0.3% stable 594.9 602.9 598.4 37% 58.3 59.7 58.2 63% Q1 2014 by region 5% CEE 22% 73% Q1 20121 Q1 2013 Q1 2014 Q1 2012 Q1 2013 Q1 2014 1) Revenue excl. Benelux subsi
Slide 6: Clearly Defined Strategic Priorities for 2014
CLEARLY DEFINED STRATEGIC PRIORITIES FOR 2014 1 DEFENDING MARKET 2 PROFITABLE GROWTH IN LEADERSHIP IN THE CORE SELECTED MARKETS BUSINESS Performance enhancement Further strengthening of the and exploitation of market strong market position potential 3 ENHANCING EFFICIENCY 4 CUSTOMER ORIENTATION AND
Slide 7: 1. Market Leadership in Austria
1. MARKET LEADERSHIP IN AUSTRIA Mail: Positioning as an essential channel Parcels: Improving service for private and of communications business customers Austrian Post enhances customer 70% of Austrians prefer invoices convenience thanks to 24/7 on paper (IFES study 2014) solutions: New parcel ter
Slide 8: 2. Growth in Selected Markets
2. GROWTH IN SELECTED MARKETS Investments in growth markets to exploit future potential Germany (trans-o-flex) New management team Restructuring of logistics processes: Acquisition of distribution Turkey companies Volume growth in spite of a Staff cost optimisation uncertain market environment
Slide 9: 3. Flexibilisation of the Cost Structure
ENHANCING EFFICIENCY AND 3. FLEXIBILISATION OF THE COST STRUCTURE CAPEX investments of about Staff structure optimisation: more than 20% of EUR 100m in 2014 staff under the new collective wage agreement Full-time equivalents (FTE) in the core business in Austria: New logistics centre -741 FTE 21,700
Slide 10: 4. Customer Orientation and Innovation
4. CUSTOMER ORIENTATION AND INNOVATION Ongoing rollout of new 24/7 solutions Pick-Up Station and Pick-Up Box 1m parcels in 2014 Franking machine and Drop- Off Box Already 15% of return parcels INVESTOR PRESENTATION Q1 2014 I Investor Relations I Vienna, May 8, 2014 10
Slide 11: Highlights and overview; Group results Q1 2014; Outlook 2014
1. Highlights and overview 2. Group results Q1 2014 3. Outlook 2014 INVESTOR PRESENTATION Q1 2014 I Investor Relations I Vienna, May 8, 2014 11
Slide 12: Financial Indicators Q1 2014 at a Glance
FINANCIAL INDICATORS Q1 2014 AT A GLANCE Q1 2013 Q1 2014 Slight revenue drop of 0.7% compared to a very 1 Revenue Revenue,(EUR EURm)m 602.9 598.4 strong prior-year quarter (elections etc.) 2 EBITDA margin 13.3% 13.2% Stable high EBITDA margin of over 13% in Q1 High profitability in spite of negative
Slide 13: Group Revenue Slightly Below Prior-Year Level as Expected
GROUP REVENUE SLIGHTLY BELOW PRIOR-YEAR LEVEL AS EXPECTED Revenue development EUR m Group revenue Q1 2014 Slight revenue decline of 0.7% compared to -0.7% the “Super Election Year 2013“ Revenue higher than Q1 2012 594.9 602.9 598.4 Mail & Branch Network Revenue down 3.1% in Q1: 385.0 391.0 378.8
Slide 14: Mail & Branch Network Division: Revenue Trends Q1 2014
MAIL & BRANCH NETWORK DIVISION: REVENUE TRENDS Q1 2014 Letter Mail/Mail Solutions (EUR m) Direct Mail/Media Post (EUR m) Positive effects also in 2014 related to Austrian Less positive effects from elections in Chamber of Labour elections Q1 2014 Growth in the field of mail solutions Pressur
Slide 15: Parcel & Logistics Division: Revenue Trends Q1 2014
PARCEL & LOGISTICS DIVISION: REVENUE TRENDS Q1 2014 Revenue (EUR m) Regional mix in % +3.7% 220.0 210.0 212.1 South East and Eastern Europe: +8.7% 8% Strong revenue growth and further CEE 8% 8% productivity increases Austria 31% 35% Austria: +4.4% 34% Growth impetus due to online shopping and ne
Slide 16: Continuation of High EBIT Level
CONTINUATION OF HIGH EBIT LEVEL EBIT development Group EBIT Q1 2014 EUR m -2.6% EBIT at a high level of EUR 58.2m 58.3 59.7 +1.4 58.2 -1.1 Mail & Branch Network -1.9 Solid earnings development with slight EBIT decrease – drop in revenue could be largely compensated by cost discipline Parcel & Logist
Slide 17: Key Income Statement Indicators
KEY INCOME STATEMENT INDICATORS Change EUR m Q1 2013 Q1 2014 % abs. Revenue 602.9 598.4 -0.7% -4.5 Slight revenue drop of Total operating income 620.2 615.0 -0.8% -5.2 0.7% Raw materials and services used -187.2 -183.8 -1.8% -3.4 Staff costs -280.2 -280.6 0.1% 0.3 Staff costs at a stable level Other
Slide 18: Mail & Branch Network Division: Key Income Statement Indicators
MAIL & BRANCH NETWORK DIVISION: KEY INCOME STATEMENT INDICATORS Change EUR m Q1 2013 Q1 2014 % abs. Revenue (external sales) 391.0 378.8 -3.1% -12.2 3.1% revenue Letter Mail & Mail Solutions 209.5 207.1 -1.2% -2.4 decrease compared to strong Q1 2013 Direct Mail 112.8 105.7 -6.3% -7.1 Media Pos
Slide 19: Parcel & Logistics Division: Key Income Statement Indicators
PARCEL & LOGISTICS DIVISION: KEY INCOME STATEMENT INDICATORS Change EUR m Q1 2013 Q1 2014 % abs. Revenue (external sales) 212.1 220.0 3.7% 7.9 Revenue increase of Premium Parcels 158.9 165.0 3.8% 6.1 3.7% Standard Parcels 45.9 46.1 0.3% 0.2 Other Parcel Services 7.3 8.9 22.5% 1.6 Total revenue
Slide 20: Balance Sheet Structure Remains Solid
BALANCE SHEET STRUCTURE REMAINS SOLID Balance sheet as at March 31, 2014 (EUR m) Liquid financial resources of EUR 346m; dividend payment of EUR 128m on May 8 Financial liabilities of only 1,672 EUR 24m 1,672 Financial liabilities 23.5 Cash and cash equivalents/ Securities 345.6 Liabilities/ 336.1 O
Slide 21: Robust Cashflow
ROBUST CASHFLOW Cash flow development (EUR m) Q1 2014 Cash flow from operating activities at the prior-year level, driven, among other reasons, by the lower growth of receivables 73.8 Continuation of investment programme with CAPEX of about EUR 100m expected for 2014 50.6 -23.2 38.0 -11.2 -1.4 Opera
Slide 22: Highlights and overview; Group results Q1 2014; Outlook 2014
1. Highlights and overview 2. Group results Q1 2014 3. Outlook 2014 INVESTOR PRESENTATION Q1 2014 I Investor Relations I Vienna, May 8, 2014 22
Slide 23: Outlook Confirmed for 2014
OUTLOOK CONFIRMED FOR 2014 Letter mail volumes impacted by e-substitution of business clients and now also new e-government solution Market Advertising market negatively affected by pressure of online business on environment traditional mail order companies and physical outlets Growth in priva
Slide 24: Contact
CONTACT Austrian Post Financial calendar 2014 Investor Relations May 8, 2014 Dividend payment date Haidingergasse 1, 1030 Vienna May 8, 2014 Interim report Q1 2014 Website: www.post.at/ir Aug. 14, 2014 Half-year financial report 2014 E-mail: investor@post.at Nov. 12, 2014 Interim report Q1-3 2014 Ph
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