Slide 1: Austrian Post Investor Presentation Q1 2018
AUSTRIAN POST INVESTOR PRESENTATION Q1 2018 Walter Oblin/CFO Vienna, May 16, 2018
Slide 2: 1. Highlights and Overview
1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results Q1 2018 4. Outlook 2018 INVESTOR PRESENTATION | Investor Relations | Vienna, May 16, 2018 2
Slide 3: Highlights Q1 2018
HIGHLIGHTS Q1 2018 Market: Continuation of basic trends: approx. 5% drop in addressed letter mail volumes, dynamic double-digit parcel growth against tough competition Revenue: Group revenue up slightly by 0.4%; drop in letter mail (-3.5%) more than compensated by parcel growth (+12.9%) Earnings: EB
Slide 4: Slight revenue improvement thanks to parcel growth
SLIGHT REVENUE IMPROVEMENT THANKS TO PARCEL GROWTH REVENUE DEVELOPMENT EUR m +0.4% GROUP: +0.4% 488.7 490.6 • Slight revenue increase as a result of strong parcel growth 117.1 +12.9% 132.2 PARCEL & LOGISTICS: +12.9% • Continuation of basic double-digit upward trend in Austria in 2018 • Additional re
Slide 5: Improved operating earnings (EBIT)
IMPROVED OPERATING EARNINGS (EBIT) EBIT DEVELOPMENT EUR m +4.3% +1.5 +1.3 56.7 54.4 -0.4 MAIL & BRANCH NETWORK: • EBIT down by EUR 0.4m in Q1 2018 • Provisions for redimensioning financial services (-EUR 22.1m) mostly offset by one-off income from dissolution of cooperation with BAWAG P.S.K. (+EUR 2
Slide 6: 2. Strategy Implementation
1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results Q1 2018 4. Outlook 2018 INVESTOR PRESENTATION | Investor Relations | Vienna, May 16, 2018 6
Slide 7: Clear strategic priorities
CLEAR STRATEGIC PRIORITIES DEFENDING MARKET LEADERSHIP IN PROFITABLE GROWTH IN SELECTED 1. THE CORE BUSINESS 2. MARKETS Safeguarding market position in a competitive Focusing and performance enhancement environment ENHANCING EFFICIENCY AND CUSTOMER ORIENTATION AND 3. OPTIMISING THE COST STRUCTURE 4.
Slide 8: Changed needs in letter and parcel delivery
1 CHANGED NEEDS IN LETTER AND PARCEL DELIVERY Same day TIME- Time window CRITICAL Food (e.g. 2-3 p.m.) Evening delivery Spare parts Wine parcel Next day Private mail, fashion CUSTOMER PREFERENCES 2/3 days 4/5 days Account statements, advertising NOT TIME- Telephone bill, fundraising letter CRITICAL
Slide 9: New product portfolio: offering tailored to specific customer preferences
NEW PRODUCT PORTFOLIO: OFFERING 1 TAILORED TO SPECIFIC CUSTOMER PREFERENCES Postal rates in EUR Previous New product offering as of July 1, 2018 offering PRIO ECO ECO Selected services, BUSINESS universal service Universal service Universal service Not universal service obligation J+1 day J+2/3 days
Slide 10: International trend: priority and non-priority rates in Europe
INTERNATIONAL TREND: 1 PRIORITY AND NON-PRIORITY RATES IN EUROPE Spain 0.66 4.17 Iceland 1.20 3.98 Italy 1.04 3.06 Denmark 0.99 2.94 Croatia 0.72 1.50 Poland 1.17 1.45 Czech Republic 1.26 Finland 1.23 Standard letter <20g Slovakia 0.82 1.15 (adjusted for Norway 1.07 Bulgaria 0.76 0.99 purchasing pow
Slide 11: E-commerce parcel business requires expanded range of services
E-COMMERCE PARCEL BUSINESS REQUIRES 1 EXPANDED RANGE OF SERVICES E-COMMERCE ON-BOARDING, AUSTRIA-WIDE DELIVERY SERVICE WAREHOUSING & FULFILLMENT SPEED ACCORDING TO CUSTOMER PREFERENCES • ACL and shöpping.at as e-commerce >> NEXT DAY enablers >> SAME DAY • Post Systemlogistik offers warehousing >> JU
Slide 12: Branch network: stability in the core business, redimensioning of financial services
BRANCH NETWORK: STABILITY IN THE CORE 2 BUSINESS, REDIMENSIONING OF FINANCIAL SERVICES THREE PRODUCT GROUPS WILL CONTINUE TO BE A 1,790 POSTAL SERVICE POINTS FIXED PART OF THE PRODUCT OFFERING • 38m CUSTOMER CONTACTS p.a. • Acceptance of parcels and letters POSTAL in company-operated branch offices
Slide 13: Growth in selected markets
2 GROWTH IN SELECTED MARKETS GROWTH FOCUS ON PARCEL & LOGISTICS GERMANY Austrian Post International: • Growth in international letter mail business, revenue up 8.0% in Q1 2018 AEP (50% stake, consolidated at equity): CEE/SEE • Joint venture in pharmaceutical Focus on profitable parcel growth wholesa
Slide 14: Capacity and quality drive
3 CAPACITY AND QUALITY DRIVE PLANNED EXPANSION OF PARCEL LOGISTICS IN AUSTRIA TARGET BY 2021: Growth investments of • Doubling of sorting capacity to 100,000 > EUR 50m in 2018 parcels/hour • Volume development from 97m parcels in 2017 to 150m parcels, even in the case of partial own delivery by indi
Slide 15: Staff structure in Austria
3 STAFF STRUCTURE IN AUSTRIA FULL TIME EQUIVALENTS IN THE AUSTRIAN CORE BUSINESS (average for period) 21,926 Change Q1 2017 / Q1 2018: 21,003 490 20,217 20,064 –706 Civil servants 19,417 +142 FTE 1,891 18,790 18,233 –316 Employees old CWA 2,490 17,692 3,350 17,157 17,299 +1,164 Employees new CWA 3,8
Slide 16: Further expansion of self-service customer solutions
FURTHER EXPANSION OF SELF-SERVICE 4 CUSTOMER SOLUTIONS 25,729 PICK-UP BOXES 313 PICK-UP STATIONS 387 DROP-OFF BOXES Q1 2018: >550,000 items Q1 2018: >686,000 items Q1 2018: >1,138,000 items Number of solutions Items/ month 06/12 03/18 12/13 03/18 12/13 03/18 MEDIUM-TERM DOUBLING OF NUMBER OF SELF-SE
Slide 17: New offerings for more customer service
4 NEW OFFERINGS FOR MORE CUSTOMER SERVICE SERVICE EVALUATION AND DAMAGE PICK-UP SERVICE REPORT WITH THE POST APP • Pick-up of postpaid parcels by delivery staff • 4-step evaluation system in the Post App; automatic • In person or from any desired location feedback channel after delivery, direct forw
Slide 18: 3. Group Results Q1 2018
1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS Q1 2018 4. Outlook 2018 INVESTOR PRESENTATION | Investor Relations | Vienna, May 16, 2018 18
Slide 19: Q1 2018 financial indicators at a glance
Q1 2018 FINANCIAL INDICATORS AT A GLANCE Q1 2017 Q1 2018 Revenue (EUR m) 488.7 490.6 Slight year-on-year revenue increase EBITDA margin 15.9% 15.6% Stable EBITDA margin of 15.6% EBIT margin 11.1% 11.6% Slightly higher profitability Earnings/share (EUR) 0.60 0.62 Earnings per share above prior-year l
Slide 20: Key income statement indicators
KEY INCOME STATEMENT INDICATORS EUR m Q1 2017 Q1 2018 % ∆ Revenue 488.7 490.6 0.4% 2.0 +EUR 20.1m in one-off income from dissolution Other operating income 14.8 34.6 >100% 19.9 of cooperation with Raw materials, consumables and services used -99.9 -103.9 -4.0% -4.0 BAWAG P.S.K. Staff costs -263.0 -2
Slide 21: Mail & Branch Network division: revenue development in Q1 2018
MAIL & BRANCH NETWORK DIVISION: REVENUE DEVELOPMENT IN Q1 2018 LETTER MAIL & MAIL SOLUTIONS (EUR m) DIRECT MAIL/MEDIA POST (EUR m) • Drop in letter mail volume of about 5% • Seasonal effect: weaker advertising period in the • Good development in mail solutions and international Easter week, this yea
Slide 22: Mail & Branch Network division: income statement
MAIL& BRANCH NETWORK DIVISION: INCOME STATEMENT EUR m Q1 20171 Q1 2018 % ∆ Revenue 372.6 359.6 -3.5% -13.0 Revenue decline in Q1 2018 due to lower letter • Letter Mail & Mail-Solutions 206.6 202.2 -2.1% -4.3 mail and direct mail • Direct Mail 105.9 100.0 -5.6% -6.0 volumes • Media Post 31.5 32.2 2.2
Slide 23: Parcel & Logistics division: revenue development in Q1 2018
PARCEL & LOGISTICS DIVISION: REVENUE DEVELOPMENT IN Q1 2018 REVENUE (EUR m) +12.9% 132.2 PARCEL & LOGISTICS DIVISION: +12.9% • Organic revenue growth of 10.8% in Q1 2018 excl. 117.1 segment change of Weber Escal 25.4 +12.3% CEE/SEE 22.6 SOUTH EAST/EASTERN EUROPE: +12.3% • Segment change of Weber Esc
Slide 24: Parcel & Logistics division: income statement
PARCEL & LOGISTICS DIVISION: INCOME STATEMENT EUR m Q1 20171 Q1 2018 % ∆ Revenue 117.1 132.2 12.9% 15.2 10.8% increase in revenue excl. segment • Premium 55.3 61.9 12.1% 6.7 change of Weber Escal, Croatia • Standard 53.1 57.0 7.2% 3.8 • Other Parcel Services 8.7 13.3 53.6% 4.6 +EUR 2.6m due to Reven
Slide 25: Solid balance sheet structure
SOLID BALANCE SHEET STRUCTURE BALANCE SHEET AS AT MARCH 31, 2018 EUR m 1,775.6 1,775.6 Other financial liabilities 7.3 Financial liabilities of only EUR 7m Cash and cash equivalents/ Liabilities/ 503.7 430.0 Securities1 Other Liquid financial resources of Financial assets/ EUR 504m Investment proper
Slide 26: Special cash flow effect in Q1 2018
SPECIAL CASH FLOW EFFECT IN Q1 2018 CASH FLOW DEVELOPMENT EUR m Special payment amounting to EUR 107.0m resulting from the 175.9 termination of the cooperation with BAWAG P.S.K. less services rendered in the reporting period of EUR 11.1m 134.2 95.9 Stable operating free cash flow 95.9 80.0 -24.7 -0.
Slide 27: 4. Outlook 2018
1. Highlights and Overview 2. Strategy Implementation 3. Group Results Q1 2018 4. OUTLOOK 2018 INVESTOR PRESENTATION | Investor Relations | Vienna, May 16, 2018 27
Slide 28: Outlook 2018
OUTLOOK 2018 • Approx. 5% volume decline p.a. of addressed letter mail due to electronic substitution Market • Volatile direct mail business in the course of the year environment • Double-digit growth on the parcel market, intense competition • Group: stable revenue development continues to be expec
Slide 29: Contact
CONTACT Austrian Post Financial calendar 2018 Investor Relations August 10, 2018 Half-Year Financial Report 2018 Rochusplatz 1, 1030 Vienna, Austria November 15, 2018 Interim Report Q1-3 2018 Website: www.post.at/ir E-mail: investor@post.at Telephone: +43 57767-30401 Disclaimer This presentation con