Osterreichische Post Ag · VIE:POST

Osterreichische Post — Austrian Post — Q1 2020 Earnings Presentation

37 slides from Osterreichische Post's earnings presentation, May 14, 2020

  1. Slide 1: Austrian Post Investor Presentation Q1 2020

  2. Slide 2: Highlights and Overview

    1. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results Q1 2020 4. Outlook 2020

  3. Slide 3: Austrian Post at a Glance

    AUSTRIAN POST AT A GLANCE WP New divisional structure increases transparency Mail Parcel & Logistics Retail & Bank Revenue mix 2019 - Letter mail - Parcels, express mail - Branch services - Direct mail - Fulfillment & cash - Financial services Branch services (2%) & - Newspapers and transport - Cust

  4. Slide 4: Current Focus Due to COVID-19

    CURRENT FOCUS DUE TO COVID-19 GT Maintenance of an Austria-wide logistics and branch network, the only physical connection between all Austrian households and businesses during the COVID-19 peak Maintenance of the universal service in traditional letter mail and parcel services throughout Austria, i

  5. Slide 5: COVID-19 - Austrian Post as Part of Austria's Critical Infrastructure

    COVID-19 - AUSTRIAN POST AS PART OF AUSTRIA'S CRITICAL KZ INFRASTRUCTURE Security measures and rules of conduct to protect employees and customers Ensuring the nationwide delivery in Austria Austria-wide branch operation of 412 branches maintained across the country 9 parcel centres and 282 delivery

  6. Slide 6: COVID-19 - Risks of Negative Impact on Revenue

    COVID-19 -RISKS OF NEGATIVE IMPACT ON REVENUE GT EURm Financial and 2,022 Branch Services 80 Parcel CEE __118 - Risk of a loss of revenue due to reduced customer frequency and access restrictions to branches of Austrian Post Positive momentum in private customer parcel business through online shoppi

  7. Slide 7: Highlights Q1 2020

    HIGHLIGHTS Q1 2020 KZ Mail Development in the traditional mail business before COVID-19 pandemic as expected: ™ Letter Mail volume decline due to electronic substitution with first COVID-19 impact; no positive price effects in Q1 2020 — =f Direct Mail & Development in Q1 2020 already shaped by the d

  8. Slide 8: Revenue Increase of 2.1% in Q1 2020

    REVENUE INCREASE OF 2.1% IN Q1 2020 Ze Strong parcel growth drives up Q1 revenue Revenue development EURm [—— #2.1% — Retail & 492.5 502.9 Bank 218 -39.4% my 8.2 Losistics VM) 423.8% | es Mail “60% Q1 20191 Q1 2020 INVESTOR PRESENTATION Investor Relations Vienna, 14 May 2020 Group: +2.1% Strong reve

  9. Slide 9: Reported Q1 2020 EBIT Below the Prior-Year Level

    REPORTED Q1 2020 EBIT BELOW THE PRIOR-YEAR LEVEL GT EBIT development EURm [ -41.9% 57.4 Mm _----f a -8.8 D<| (= 409 33.3 181 ama Q120191 Mail Parcel& —-Retail& — Corporate/ Q] 2020 Logistics Bank Consol. INVESTOR PRESENTATION Investor Relations Vienna, 14 May 2020 Mail: - Drop in letter mail volumes

  10. Slide 10: Strategy Implementation

    1. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results Q1 2020 4. Outlook 2020 M74 10

  11. Slide 11: Clear Strategic Priorities

    CLEAR STRATEGIC PRIORITIES GT 01 Defending market leadership in the core business 02 Profitable growth in selected markets Focusing and performance enhancement Safeguarding market position in a competitive environment 03 Enhancing efficiency and flexibilisation of the cost structure '@) Customer ori

  12. Slide 12: Letter Mail

    01 LETTER MAIL Letter mail volumes (millions of items) @ -4.3% 2012 2013 20141 = 2015 2016' 2017 2018 2019 “International letter mail ‘Ml Austrian letter mail 1 Adjusted reporting due to automated calculation methodology INVESTOR PRESENTATION Investor Relations Vienna, 14 May 2020 KZ Current letter

  13. Slide 13: 0.70 0.74 1.25 1.30 2.50 2.55 4.00 4.10 0.65 0.70 1.10 1.15 2.25 2.30

    0.70 0.74 1.25 1.30 2.50 2.55 4.00 4.10 0.65 0.70 1.10 1.15 2.25 2.30 0.80 0.85 1.35 1.35 2.70 2.75 4.20 4.30

  14. Slide 14: Direct Mail/Media Post in Austria

    0) DIRECT MAIL/MEDIA POST IN AUSTRIA Direct Mail/Media Post (millions of items) @ -1.8% [ -3.1% ] 5,108 4,883 4737 4,727 4,765 4,599 4,816 4,559 4417 1! 4039 3822 3,659 3,703 «3,777 3630 3.834 3 ga7 2011 2012) «42013 «2014 «892015 942016 §=2017 +2018 §=2019 (addressed _ unaddressed INVESTOR PRESENTA

  15. Slide 15: Austrian Parcel Business: Growth Forecast Remains Valid

    071 AUSTRIAN PARCEL BUSINESS: GROWTH FORECAST REMAINS VALID =‘ Parcel volume forecast of Austrian Post (millions of parcels) +154% } 7145 Current Parcel volume trends Q1 2020 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020e 2021e INVESTOR PRESENTATION Investor Relations Vienna, 14 May 20

  16. Slide 16: Growth in Selected Markets

    62 GROWTH IN SELECTED MARKETS Growth focus on Parcel & Logistics DEUTSCHLAND AEP (51.5% stake, at-equity consolidation) - Pharmaceutical wholesale joint venture - Revenue up by 27% in Q1 2020 to EUR 144m - EBIT break-even achieved Austrian Post International Deutschland - Strong competition in the i

  17. Slide 17: bank99 - The New Bank of Austrian Post Since April 2020

    BANK99 - THE NEW BANK OF AUSTRIAN POST SINCE 1 APRIL 2020 KZ fH fn Product offering encompasses ~ Focused proprietary offering (payment transactions, current accounts, savings products) — Commission-based partner solutions in preparation (consumer finance, mortgages, insurance products, credit card,

  18. Slide 18: shöpping.at - With Strong Growth

    02 shépping.at - WITH STRONG GROWTH @ Accesses Jan-Apr Parcel volumes Jan-Apr (9 accesses per day) (9 items per day) 37,844 1,160 - More than 4,5m visits to Austrian Post’s shopping- platform in the period January to April 2020 - Shipping of over 140,000 parcels from January to April 2020 - More tha

  19. Slide 19: Capacity Drive Based on Growth Forecasts

    CAPACITY DRIVE BASED ON GROWTH FORECASTS KZ Logistics Centre Lower Austria (Hagenbrunn) 70,000m property, 13,500 parcels/h Investment programme will be maintained in 2020 to handle volume growth and enable efficiency improvements in the coming years; CAPEX 2020 remains at a high level CAPEX (EUR m)!

  20. Slide 20: Expansion of Logistics Infrastructure in Austria

    03 EXPANSION OF LOGISTICS INFRASTRUCTURE IN AUSTRIA ——————— OE Phase 1 Realised In implementation 000 ——puctyrt «=a ~ —mo | Phase 3 Sorting capacity PLC Upper Austria Beem . . by end of 2020: In preparation depending on parcelvolumes [RE Yrdenecey PLC Vienna-South 20,000 parcels/h INVESTOR PRESENTAT

  21. Slide 21: Staff Structure in Austria

    STAFF STRUCTURE IN AUSTRIA Le Full-time equivalents in the Austrian core business (average for the period) Change FY 2019/Q1 2020 -459 Civil servants -133 Employees Old CWA +372 Employees New CWA -220 Employees Medium-term trend: Ongoing structural change to employees under the new collective wage a

  22. Slide 22: Self-Service Solutions as a Competitive Advantage

    04 SELF-SERVICE SOLUTIONS AS A COMPETITIVE ADVANTAGE KZ Q1 2020: >886,000 items Q1 2020: >970,000 items Q1 2020: >1.6m items 47,870 pick-up boxes 70,449 boxes at pick-up stations 454 drop-off boxes & © 4 Jun.12 Apr.20 Nov.13 Apr.20 Jan.12 Apr.20 @ 012020 compared to12019 SN Number of solutions <==eI

  23. Slide 23: Group Results Q1 2020

    1. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS Q1 2020 4. Outlook 2020 M74 23

  24. Slide 24: Quarterly Revenue and EBIT by Division

    EUR m Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 492.5 488.6 481.1 559.3 2,021.6 332.9 327.3 310.0 349.9 1,320.1 208.2 200.6 195.4 211.7 816.0 94.0 92.3 85.6 100.1 372.0 30.7 34.4 28.9 38.1 132.1 141.0 142.0 154.2 195.2 632.5 21.8 21.9 19.6 17.1 80.5 -3.2 -2.6 -2.7 -2.9 -11.5 57.4 50.3 22.3 70.5 200.6

  25. Slide 25: EBIT Margin Below Previous Year

    492.5 502.9 Revenue up 2.1% thanks to parcel business 17.2 13.0 Margin down to 13.0% EBIT margin below previous year, also burdened by 11.7 6.6 COVID-19 0.64 0.42 Earnings per share of EUR 0.42, below previous year 60.8 60.4 Stable operating free cash flow 37.2 32.5 Equity ratio reduced due to balan

  26. Slide 26: Group Income Statement Q1 2020

    EUR m Q1 2019 Q1 2020 % ∆ Revenue 492.5 502.9 2.1% 10.4 Other operating income 21.0 13.3 -36.6% -7.7 Raw materials, consumables and services used -110.3 -120.3 -9.1% -10.0 Expenses for financial services 0.0 -0.1 - -0.1 Staff costs -251.7 -253.5 -0.7% -1.8 Other operating costs -66.3 -77.0 -16.1% -1

  27. Slide 27: Mail Division: Revenue Development Q1 2020

    ™ MAIL DIVISION: KZ REVENUE DEVELOPMENT Q1 2020 Letter Mail & Mail Solutions (EUR m) Direct Mail/Media Post (EUR m) - Revenue down by 2.4% - Volume decline in Austria of about 9% in Q1 2020 - Letter Mail decline in Austria of 4-5% - Addressed items: Structural decline in Austria, intensified in the

  28. Slide 28: Mail Division Revenue and EBIT

    EUR m Q1 20191 Q1 2020 % ∆ Revenue 332.9 317.5 -4.6% -15.3 • Letter Mail & Mail-Solutions 208.2 203.3 -2.4% -4.9 • Direct Mail 94.0 83.8 -10.9% -10.2 • Media Post 30.7 30.5 -0.6% -0.2 Revenue intra-Group 0.7 0.7 2.0% 0.0 Total revenue 333.6 318.2 -4.6% -15.3 EBIT 55.7 46.9 -15.8% -8.8 EBIT margin2 1

  29. Slide 29: Parcel & Logistics Division: Revenue Development Q1 2020

    PARCEL & LOGISTICS DIVISION: KZ REVENUE DEVELOPMENT Q1 2020 Revenue development EURm ° Parcel & Logistics Division: +23.8% +23.8% - E-commerce trend and cooperation with DHL ensure 174.5 further revenue growth South East/Eastern Europe +11.8% 141.0 5 30.8 - Positive revenue development in Slovakia,

  30. Slide 30: Parcel & Logistics Revenue and EBIT

    EUR m Q1 20191 Q1 2020 % ∆ Revenue 141.0 174.5 23.8% 33.5 • Premium 68.9 100.1 45.4% 31.2 • Standard 58.0 56.8 -2.2% -1.3 • Other Parcel Services 14.1 17.6 25.0% 3.5 Revenue intra-Group 0.2 0.3 42.7% 0.1 Total revenue 141.2 174.8 23.8% 33.6 EBIT 6.8 8.7 28.6% 1.9 EBIT margin2 4.8% 5.0% - -

  31. Slide 31: Retail & Bank Division: Revenue Development Q1 2020

    RETAIL & BANK DIVISION GT REVENUE DEVELOPMENT Q1 2020 Revenue development EURm ' -39.4% 7 21.8 Cash payments for third parties Service fees from 13.2 former banking Financial services partner (cash payments for third parties) Branch services . (merchandise and Branch services branch products) Q12019

  32. Slide 32: Retail & Bank Revenue and EBIT

    EUR m Q1 20191 Q1 2020 % ∆ Revenue 21.8 13.2 -39.4% -8.6 • Branch Services 21.8 11.2 -48.6% -10.6 thereof service fees from former banking partner 9.4 - - - thereof cash payments for third parties (e.g. pensions) 2.3 - - - • Financial Services 0.0 2.0 - 2.0 Revenue intra-Group 44.7 43.8 -2.1% -1.0 T

  33. Slide 33: Balance Sheet Structure of Austrian Post

    BALANCE SHEET STRUCTURE OF AUSTRIAN POST Balance sheet as at 31 March 2020 EUR m 2,229.2 ASSETS EQUITY & 2,042.9 Liquid financial EO BILITES 2,042.9 406.8 © resources of EUR Cash/cash equiv,, money 407m Other financial market/securities invest 341.2 aH liabilities doe Financialassets, investment 142

  34. Slide 34: Free Cash Flow

    72.3 -9.9 -1.6 60.8 -9.4 -0.4 -2.1 49.0

  35. Slide 35: Outlook 2020

    1. Highlights and Overview 2. Strategy Implementation 3. Group Results Q1 2020 4. OUTLOOK 2020 M74 35

  36. Slide 36: Outlook for 2020 Cannot Be Precisely Predicted

    OUTLOOK FOR 2020 CANNOT BE PRECISELY PREDICTED GV Market environment - Negative economic environment can sustainably burden Letter Mail and Direct Mail volumes - Short-term volume decline especially in Direct Mail items (minus 50% during the period of store closings; subsequent gradual ramping up of

  37. Slide 37: Contact

    CONTACT Austrian Post Financial calendar 2020 Investor Relations 17 June 2020 Annual General Meeting Rochusplatz 1, 1030 Vienna 29 June/1 July 2020 Ex-day/Dividend Payment Day Website: post.at/ir 7 August 2020 Half-Year Financial Report 2020 E-mail: investor@post.at 13 November 2020 Interim Report Q

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