Slide 1: Austrian Post Investor Presentation Q1 2021
AUSTRIAN POST Investor Presentation Q1 2021 Walter Oblin, CFO Vienna, 12 May 2021 INVESTOR PRESENTATION Investor Relations Vienna, 12 May 2021
Slide 2: Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results Q1 2021 4. Outlook 2021 INVESTOR PRESENTATION Investor Relations Vienna, 12 May 2021 2
Slide 3: Austrian Post at a Glance
AUSTRIAN POST AT A GLANCE Mail Parcel & Logistics Retail & Bank Revenue mix Q1 2021 – Letter Mail – Parcels and Express – Branch and Financial – Direct Mail – Fulfillment and Cash Services Branch & – Newspapers and Transport – Customer Services Financial Services Magazines – E-Commerce Services Parc
Slide 4: Structural Change in the Austrian Post Portfolio
STRUCTURAL CHANGE IN THE AUSTRIAN POST PORTFOLIO Consistent strategy implementation enables repositioning Mail and parcel as strong pillars Revenue in EUR m 492.5 502.8 646.1 100% 28.4% 34.5% 49.7% Parcel & Logistics Mail 67.2% 62.9% Retail & Bank 47.7% 4.4% 2.6% 2.6% Q1 2019 Q1 2020 Q1 2021 INVESTO
Slide 5: Overview Q1 2021
OVERVIEW Q1 2021 – Ongoing pandemic and countermeasures imposed by authorities COVID-19 (in case of Austria: 5-week lockdown in Q1 2021) – Focus on safety and operational performance – Negative impact on letter mail and direct mail volumes Volume development – Parcel volumes positively influenced by
Slide 6: Strong Revenue Development in Q1 2021
STRONG REVENUE DEVELOPMENT IN Q1 2021 Organic and inorganic growth Revenue development EUR m Group: +28.5% to EUR 646.1m +28.5% Growth driven by strong parcel business (+12.0% excl. Aras Kargo) Mail: -2.1% to EUR 311.0m 646.1 – Solid revenue development in Letter Mail & Business Solutions (+1.1%) to
Slide 7: Earnings Improvement Due to Strong Parcel Business
EARNINGS IMPROVEMENT DUE TO STRONG PARCEL BUSINESS EBIT development EUR m +79.2% Group: +79.2% to EUR 59.8m Operating earnings up as a result of parcel growth 59.8 Mail: -3.0% to EUR 45.5m – Reduced earnings caused by Direct Mail and Media Post -2.0 +2.7 revenue decline due to COVID-19 restrictions
Slide 8: Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results Q1 2021 4. Outlook 2021 INVESTOR PRESENTATION Investor Relations Vienna, 12 May 2021 8
Slide 9: INVESTOR PRESENTATION Investor Relations Vienna, 12 May 2021
INVESTOR PRESENTATION Investor Relations Vienna, 12 May 2021 9
Slide 10: Letter Mail
1 LETTER MAIL Letter Mail in Q1 2021 Mail volumes in 2021 still declining and volatile due to the pandemic, Volumes (millions of items) decline of 6% Ø -4.6% -6.8% 939 2021 Letter Mail volumes in Austria 931 910 833 764 728 723 690 643 Q1: -6% EUR 733m Revenue 1 1 2012 2013 2014 2015 2016 2017 2018
Slide 11: Direct Mail/Media Post in Austria
1 DIRECT MAIL/MEDIA POST IN AUSTRIA Direct Mail/Media Post in Q1 2021 Continuing structural volume decline and negative impact due to COVID-19 Volumes (millions of items) restrictions: Q1 -8.5% Ø -2.9% -11.3% 2021 Direct Mail/Media Post 5,108 volumes in Austria 4,883 4,737 4,727 4,765 4,816 4,599 4,
Slide 12: Austrian Parcel Business Maintains Strong Growth
1 AUSTRIAN PARCEL BUSINESS MAINTAINS STRONG GROWTH Parcel business in Q1 2021 Parcel growth of 33.5% driven by e-commerce and positive lockdown Volumes (millions of parcels) effects +230% +30% 2021 Parcel business volumes in Austria 166 127 Q1: +33.5% EUR 668m 97 108 Revenue 74 80 81 65 70 57 59 50
Slide 13: Further Expansion of Sorting Capacities
1 FURTHER EXPANSION OF SORTING CAPACITIES Logistics Centre Tyrol Capacity expansion is the top priority: 104,000 m2 property – Maintenance CAPEX of EUR 13.7m in Q1 2021 – Growth CAPEX (incl. properties) of EUR 4.7m in Q1 2021 Ongoing implementation of the 2018-2022 investment programme: +30% sorting
Slide 14: Logistics Infrastructure Expansion in Austria
1 LOGISTICS INFRASTRUCTURE EXPANSION IN AUSTRIA 2017/2018 2019 2020 2021 2022 LC Carinthia Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Wernberg LC = Logistics Centre LC Lower Austria Hagenbrunn Sorting capacity at LC Styria the end of 2021: Kalsdorf >90,000 parcels/h Phase 1 (completed) LC Salzb
Slide 15: 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 21,926 logistics staff due to higher 21,003 parcel volumes 490 20,218 20,064 +685 19,417 1,891 18,790 18,233 2,490 17,692 17,463 17,644 17,452 17,232 17,917 3,350 3,858
Slide 16: 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 17: Ongoing Growth in the International Parcel Markets
2 ONGOING GROWTH IN THE INTERNATIONAL PARCEL MARKETS OF AUSTRIAN POST Parcel volumes Aras Kargo & CEE/SEE (millions of items) 250 190 185 172 149 Turkey: positive Q1 development 139 based on solid volume growth 130 206 116 156 150 139 112 120 106 95 CEE/SEE: e-commerce as the driving 16 18 19 7 44 f
Slide 18: Aras Kargo
2 ARAS KARGO Profile of Aras Kargo Financial indicators – Top player in Turkey‘s parcel market, founded in 1979 – Q1 2021 revenue: TRY 737m (EUR 83m) – 6,500 employees (FTEs), 47 logistics sites – Full consolidation as at 25 August 2020 – 900 branches and 5,000+ vehicles – Company is cash positive,
Slide 19: bank99 – The Bank of Austrian Post
3 BANK99 – THE BANK OF AUSTRIAN POST Product offering – Focused proprietary offering (payment transactions, current accounts, savings products, housing finance) – Commission-based partner solutions (consumer financing, insurance products, credit cards, pension products) 70,000 Strengths of bank99 On
Slide 20: The Product Roadmap of bank99
3 THE PRODUCT ROADMAP OF BANK99 2020 2021 – konto99 – Building-Society Loans – sparkonto99 – Debit Master Card Start – bildungskonto99 – Consumer Financing Insurance Policies – geschäftskonto99 – Apple Pay Housing Finance New Investment Products Investment Funds INVESTOR PRESENTATION Investor Relati
Slide 21: Innovative Services in Our Self-Service Zones
3 INNOVATIVE SERVICES IN OUR SELF-SERVICE ZONES Q1 2021: >1.2m items Q1 2021: >1.3m items Q1 2021: >2.2m items 53,215 pick-up boxes 86,915 pick-up stations 463 drop-off boxes June 2012 March 2021 November 2013 March 2021 Jan 2012 March 2021 Q1 2021 vs. Q1 2020 Number of self-service solutions Items/
Slide 22: INVESTOR PRESENTATION Investor Relations Vienna, 12 May 2021
INVESTOR PRESENTATION Investor Relations Vienna, 12 May 2021 22
Slide 23: Sustainability Master Plan 2030 – Key Topics
SUSTAINABILITY MASTER PLAN 2030 – KEY TOPICS Economy & Customers 1 1 Sustainable appearance & services for private customers Create infrastructure: Sustainable mail & parcel products Initiative “Land Partner“ in 2 2 rural areas 3 3 Sustainable procurement 4 4 Sustainable governance & compliance Test
Slide 24: Group Results Q1 2021
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS Q1 2021 4. Outlook 2021 INVESTOR PRESENTATION Investor Relations Vienna, 12 May 2021 24
Slide 25: Financial Indicators at a Glance
FINANCIAL INDICATORS AT A GLANCE Q1 2020 Q1 2021 Revenue (EUR m) 502.8 646.1 Strong revenue growth of 28.5% in Q1 2021 EBITDA margin (%) 13.0 15.3 Earnings improvement leads to higher EBITDA margin EBIT margin (%) 6.6 9.2 Good Q1 2021 EBIT margin Earnings/share (EUR) 0.42 0.71 Earnings per share up
Slide 26: Key Income Statement Indicators
KEY INCOME STATEMENT INDICATORS EUR m Q1 20201 Q1 2021 % ∆ Higher national and international Revenue 502.8 646.1 28.5% 143.3 growth in parcels offsets decline in Other operating income 13.3 22.2 66.7% 8.9 the Mail Division Raw materials, consumables and services used -127.0 -185.6 -46.1% -58.6 Stron
Slide 27: Mail Division: Q1 2021 Revenue Development
MAIL DIVISION: Q1 2021 REVENUE DEVELOPMENT Letter Mail & Business Solutions (EUR m) Direct Mail/Media Post (EUR m) – Revenue increase of 1.1% – Revenue down by 7.8% – 6% volume decline in Austrian letter mail, intensified – Volume decrease in Austria of 8.5% in Q1 2021 by COVID-19 pandemic – Address
Slide 28: Mail Division: Key Income Statement Indicators
MAIL DIVISION: KEY INCOME STATEMENT INDICATORS EUR m Q1 2020 Q1 2021 % ∆ Solid revenue development of Revenue 317.5 311.0 -2.1% -6.6 Letter Mail with continuing volume • Letter Mail & Business Solutions 203.3 205.6 1.1% 2.3 decline • Direct Mail 83.8 76.6 -8.6% -7.2 Direct Mail and Media Post revenu
Slide 29: Parcel & Logistics Division: Q1 2021 Revenue Development
PARCEL & LOGISTICS DIVISION: Q1 2021 REVENUE DEVELOPMENT Revenue development Parcel & Logistics Division: +85.5% EUR m E-commerce boost continues, Aras Kargo contributes to +85.5% strong revenue increase 323.7 International (Turkey/CEE): EUR +92.4m – Ongoing e-commerce impetus and COVID-19 drive B2C
Slide 30: Parcel & Logistics Division: Key Income Statement Indicators
PARCEL & LOGISTICS DIVISION: KEY INCOME STATEMENT INDICATORS EUR m Q1 2020 Q1 2021 % ∆ High revenue increase due to continuation of ongoing organic Revenue 174.5 323.7 85.5% 149.1 revenue growth and full consolidation of Aras Kargo in • Premium 100.1 217.2 >100% 117.1 Q3 2020 • Standard 56.8 80.6 41
Slide 31: Retail & Bank Division: Q1 2021 Revenue Development
RETAIL & BANK DIVISION: Q1 2021 REVENUE DEVELOPMENT Revenue development Retail & Bank Division: +27.3% EUR m Launch of bank99 in April 2020 +27.3% Result from Financial Services 16.7 – Revenue of EUR 6.2m in Q1 13.2 Branch Services: -6.2% 6.2 – Positive development for retail goods and branch Result
Slide 32: Retail & Bank Division: Key Income Statement Indicators
RETAIL & BANK DIVISION: KEY INCOME STATEMENT INDICATORS EUR m Q1 20201 Q1 2021 % ∆ Decline due to discontinutation of Revenue 13.2 16.7 27.3% 3.6 service fees from the former • Branch Services 11.2 10.5 -6.2% -0.7 banking partner in 2020 • Result from Financial Services 1.9 6.2 - 4.3 EUR 6.2m in rev
Slide 33: Solid Balance Sheet and Financing Structure
SOLID BALANCE SHEET AND FINANCING STRUCTURE EUR m ASSETS EQUITY & 2,761.2 2,761.2 Cash, money market/ 2,680.2 LIABILITIES 2,680.2 Liquid financial securities investments 231.7 resources of 314.4 Includes lease liabilities of 218.9 Other financial Other financial assets, 88.5 EUR 232m 351.6 EUR 312m
Slide 34: Improved Q1 2021 Cash Flow vs. Q1 2020
IMPROVED Q1 2021 CASH FLOW VS. Q1 2020 EUR m Customer deposits Operating free cash flow Free cash flow before money market and 124.1 in bank99 of EUR 74.4m securities investments of EUR 68.6m 85.0 74.4 68.6 -39.0 -13.7 +3.0 -3.9 -0.8 -1.1 Cash flow from Core banking Cash flow from Maintenance Other
Slide 35: Outlook 2021
1. Highlights and Overview 2. Strategy Implementation 3. Group Results Q1 2021 4. OUTLOOK 2021 INVESTOR PRESENTATION Investor Relations Vienna, 12 May 2021 35
Slide 36: Outlook 2021
OUTLOOK 2021 Market environment – 2021 still impacted by the pandemic and government-imposed measures – Assumption of a slow economic recovery in the course of the year – Business development influenced by high volatility and reduced visibility Revenue – Revenue increase of over 10% expected in 2021
Slide 37: Contact
CONTACT Austrian Post Financial Calendar 2021 Investor Relations 12 August 2021 Half-Year Financial Report 2021 Rochusplatz 1, 1030 Vienna 11 November 2021 Interim Report Q1-3 2021 Website: post.at/ir E-mail: investor@post.at Telephone: +43 57767-30400 Disclaimer This presentation contains forward-l