Slide 1: Austrian Post Investor Presentation H1 2019
AUSTRIAN POST Investor Presentation H1 2019 Walter Oblin, CFO Vienna, 9 August 2019 INVESTOR PRESENTATION Investor Relations Vienna, 9 August 2019
Slide 2: Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results H1 2019 4. Outlook 2019 INVESTOR PRESENTATION Investor Relations Vienna, 9 August 2019 2
Slide 3: Very good first half-year 2019
VERY GOOD FIRST HALF-YEAR 2019: Robust mail business, good growth in the parcel segment Outlook for 2019 – Slight rise in 2019 revenue Investment programme – Target of stable 2018-2021 operating result (EBIT) – The parcel logistics – Start of the Austrian Earnings centre in Hagenbrunn Post cooperati
Slide 4: Revenue improvement by +2.7% thanks to robust mail business and strong parcel growth
REVENUE IMPROVEMENT BY +2.7% (+5.2% IN Q2) THANKS TO ROBUST MAIL BUSINESS AND STRONG PARCEL GROWTH Revenue development Group: +2.7% (Q2: +5.2%) – Revenue increase in both divisions EUR m Parcel & Logistics: +7.8% (Q2: +8.9%) +2.7% – Ongoing positive e-commerce trend, growth in revenue despite own de
Slide 5: Operating result (EBIT) improved by 2.5% in H1 2019
OPERATING RESULT (EBIT) IMPROVED BY 2.5% IN H1 2019 – INCREASE OF 4.0% IN Q2 EBIT development EUR m +2.5% Mail & Branch Network: 105.1 107.7 – EBIT increase of EUR 3.6m in H1 2019 based on revenue +0.1 -1.0 growth and high cost discipline +3.6 Q2 Q2 Parcel & Logistics: 48.4 50.3 – Revenue growth des
Slide 6: Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results H1 2019 4. Outlook 2019 INVESTOR PRESENTATION Investor Relations Vienna, 9 August 2019 6
Slide 7: Clear strategic priorities
CLEAR STRATEGIC PRIORITIES 01 Defending market leadership in the 02 Profitable growth in selected markets core business Safeguarding market Focusing and performance position in a competitive enhancement environment 03 Enhancing efficiency and flexibilisation of 04 Customer orientation and the cost s
Slide 8: Letter mail in Austria
01 LETTER MAIL IN AUSTRIA Letter Mail (millions of items) Ø -4.3% 939 931 866 832 763 728 723 Current Letter Mail trends H1 2019 – Declining volumes based on e-substitution (operating decline of about 3.5%) Operating decline of – New product structure as at 1 July 2018 about 3.5% has been well recei
Slide 9: Direct mail/Media Post in Austria
01 DIRECT MAIL/MEDIA POST IN AUSTRIA Direct Mail/Media Post (millions of items) Ø -1.1% 4,883 4,737 4,727 4,764 4,816 4,599 4,559 3,822 Operating Current Direct Mail/Media Post trends 3,659 3,703 3,777 3,630 3,834 3,667 H1 2019 decline of about 3.4% – Volume decline in Austria of about 3.4% in H1 20
Slide 10: Current trends in Austrian parcel business H1 2019
01 CURRENT TRENDS IN AUSTRIAN PARCEL BUSINESS H1 2019 Parcel volumes of Austrian Post (millions of parcels) Ø +8.8% 108 97 80 81 70 74 Current trends in Austrian parcel business 65 H1 2019 59 Increase of 57 50 about 8.0% – Good operating parcel growth in H1 2019 – Intense competition, ongoing own de
Slide 11: Austrian Post as a delivery partner of Deutsche Post DHL Group
01 AUSTRIAN POST AS A DELIVERY PARTNER OF DEUTSCHE POST DHL GROUP – Cooperation between Austrian Post and Deutsche Post DHL Group came into effect: approval of planned takeover of sites by competition authorities of both countries – Austrian Post is the delivery partner of Deutsche Post DHL Group in
Slide 12: Parcel business in Austria: growth forecast
01 PARCEL BUSINESS IN AUSTRIA: GROWTH FORECAST Parcel volumes of Austrian Post (millions of parcels) ~150 Volume forecasts for Austrian Post +115% – Target 2021: 150m parcels p.a. ~125 Incl. – Medium-term target: doubling of cooperation volumes and sorting capacity 108 97 – CAPEX investment programm
Slide 13: Growth in selected markets
02 GROWTH IN SELECTED MARKETS Growth focus on Parcel & Logistics GERMANY AEP (51% stake, at-equity consolidation) CEE/SEE: Focus on parcel business – Pharmaceutical wholesale joint venture – Good volume development, especially in Croatia and Bulgaria – Revenue up by 12.9% in H1 2019 to EUR 233.3m Co
Slide 14: New financial services business
02 NEW FINANCIAL SERVICES BUSINESS Development of the company‘s own financial services business – 80/20 joint venture of Austrian Post with the GRAWE Banking Group – ECB/FMA (Austrian Financial Market Authority) decision regarding owner control procedures is expected by the end of 2019 – Launch of n
Slide 15: Capacity drive 2018-2021
03 CAPACITY DRIVE 2018-2021 Forecasted parcel volume growth leads to HAGENBRUNN PARCEL CENTRE (LOWER AT) accelerated investment programme 2019: Growth CAPEX of over EUR 50m planned CAPEX (EUR m)1 + properties – about EUR 25m + sorting technology due to DHL cooperation – about EUR 15m 139 >50 Growth
Slide 16: Expansion of logistics infrastructure in Austria
03 EXPANSION OF LOGISTICS INFRASTRUCTURE IN AUSTRIA Initial operation July 2019 Existing sites New sites/expansion Initial operation mid-2020 HAGENBRUNN LC VIENNA 20,896 m² Initial operation 2021 UPPER AUSTRIA LOWER AUSTRIA THALGAU LC Initial operation 2022 VORARLBERG LC SOUTH VIENNA LC STYRIA SALZB
Slide 17: Staff structure in Austria
03 STAFF STRUCTURE IN AUSTRIA Full-time equivalents in the Austrian core business (average for the period) 21,926 21,003 490 20,217 20,064 -37 FTE Change H1 2018/H1 2019 19,417 -861 Civil servants 1,891 18,790 18,233 17,692 2,490 3,350 17,463 17,644 17,369 17,332 -250 Employees old CWA 3,858 +1,074
Slide 18: Self-service as a competitive advantage
04 SELF-SERVICE AS A COMPETITIVE ADVANTAGE Steady increase in use H1 2019: >1.3m items H1 2019: >1.8m items H1 2019: >2.9m items 41,159 pick-up boxes 53,353 boxes at pick-up stations 422 drop-off boxes Jun.12 Jun.19 Nov.13 Jun.19 Jan.12 Jun.19 Number of solutions Items/month INVESTOR PRESENTATION In
Slide 19: The world's first blockchain stamp: Crypto Stamp
04 THE WORLD‘S FIRST BLOCKCHAIN STAMP: CRYPTO STAMP The stamp becomes digital futurezone.at 25/6/2019 – Issue date: 11/6/2019 – Number of stamps: 150,000 diepresse.com 11/6/2019 – Already sold out Kurier 12/6/2019 Tiroler Tageszeitung 27/6/2019 Tiroler Tageszeitung 27/6/2019 derstandard.at 11/6/2019
Slide 20: Group Results H1 2019
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS H1 2019 4. Outlook 2019 INVESTOR PRESENTATION Investor Relations Vienna, 9 August 2019 20
Slide 21: Financial indicators at a glance
FINANCIAL INDICATORS AT A GLANCE H1 2018 H1 2019 Revenue (EUR m) 955.2 981.1 Revenue increase of 2.7% Higher margin due to IFRS 16 (shift from expenses to EBITDA margin (%) 15.1 16.5 depreciation/amortisation) EBIT margin (%) 11.0 11.0 Stable profitability Earnings/share (EUR) 1.12 1.17 Improved ear
Slide 22: Key income statement indicators
KEY INCOME STATEMENT INDICATORS H1 H1 Q2 Q2 IFRS 16 EUR m 2018 2019 % ∆ 2018 2019 effects Strong parcel growth and rise Revenue 955.2 981.1 2.7% 25.9 464.6 488.6 - in mail revenue Other operating income 50.9 42.2 -17.2% -8.8 16.3 21.2 - Q1 2018: EUR 20m one-off Raw materials, consumables and service
Slide 23: Mail & Branch Network division: revenue development H1 2019
MAIL & BRANCH NETWORK DIVISION: REVENUE DEVELOPMENT H1 2019 Letter Mail & Mail Solutions (EUR m) Direct Mail/Media Post (EUR m) – Operating volume decline Letter Mail in Austria of – Volume decline in Austria of about 3.4% about 3.5% – Volume decrease in addressed direct mail, – Revenue increase in
Slide 24: Mail & Branch Network: income statement
MAIL & BRANCH NETWORK: INCOME STATEMENT EUR m H1 2018 H1 2019 % ∆ Q2 2018 Q2 2019 Revenue 695.0 703.9 1.3% 8.9 335.4 349.2 Positive effects from elections and new product/rate • Letter Mail & Mail-Solutions 391.0 408.8 4.6% 17.8 188.7 200.6 structure • Direct Mail 190.9 186.3 -2.5% -4.7 91.0 92.3 Un
Slide 25: Parcel & Logistics division: revenue development H1 2019
PARCEL & LOGISTICS DIVISION: REVENUE DEVELOPMENT H1 2019 Revenue development EUR m +7.8% Parcel & Logistics Division: +7.8% (Q2: +8.9%) 283.0 – E-commerce trend drives further revenue increase 262.6 CEE/SEE +7.8% 56.5 South East/Eastern Europe +7.8% (Q2: +7.0%) 52.4 – Positive revenue development in
Slide 26: Parcel & Logistics division: income statement
PARCEL & LOGISTICS DIVISION: INCOME STATEMENT EUR m H1 2018 H1 2019 % ∆ Q2 2018 Q2 2019 Revenue growth despite own Revenue 262.6 283.0 7.8% 20.4 130.4 142.0 delivery by a large customer in Vienna; trend towards higher • Premium 123.3 146.7 19.0% 23.4 61.4 77.9 quality (delivery speed) • Standard 111
Slide 27: Change in the balance sheet structure due to IFRS 16
CHANGE IN THE BALANCE SHEET STRUCTURE DUE TO IFRS 16 Balance sheet as at June 30, 2019 EUR m ASSETS EQUITY & LIABILITIES 1,896.9 1,896.9 1,681.2 286.5 Liquid financial 1,681.2 307.3 IFRS 16: lease liabilities of resources of Other financial EUR 269m Cash/cash equivalents, 10.3 EUR 287m liabilities m
Slide 28: Robust cash flow H1 2019
ROBUST CASH FLOW H1 2019 EUR m Operating free cash flow of EUR 99.6m – Financial services compensation of EUR 15.5m for H1 2019 already included in the 2018 cash flow – IFRS 16 effect: EUR 16.5m expense included in the cash flow from financing activities 123.6 99.6 -21.2 -2.8 -30.3 46.2 -18.4 -4.7 C
Slide 29: Outlook 2019
1. Highlights and Overview 2. Strategy Implementation 3. Group Results H1 2019 4. OUTLOOK 2019 INVESTOR PRESENTATION Investor Relations Vienna, 9 August 2019 29
Slide 30: Outlook 2019
OUTLOOK 2019 Market environment – Positive momentum for Letter Mail volumes 2019 due to elections and one-off mailings; medium-term decline of 5% p.a. – Structural decrease in Direct Mail volumes, impacted by data protection regulations – Growth in the parcel market against the backdrop of intense c
Slide 31: Contact
CONTACT Austrian Post Financial calendar 2019/2020 Investor Relations 14 November 2019 Interim Report Q1-3 2019 Rochusplatz 1, 1030 Vienna 12 March 2020 Annual Results 2019 Website: www.post.at/ir 16 April 2020 Annual General Meeting E-mail: investor@post.at 28/30 April 2020 Ex-day/Dividend payment