austrian post investor presentation q1 2019 post investor presentation_rs standard q1...

INVESTOR PRESENTATION Investor Relations June, 2019

Harald Hagenauer, Head of IRJune, 2019

AUSTRIAN POSTInvestor PresentationQ1 2019


1. HIGHLIGHTS AND OVERVIEW

2. Strategy Implementation

3. Group Results 2018 and Q1 2019

4. Outlook 2019

5. Additional Information

2

INVESTOR PRESENTATION Investor Relations June, 2019 3

AUSTRIAN POST AT A GLANCE

41%

19%

7%

23%

6%3%2%

Direct Mail

Financial Services

ParcelAustria

Parcel CEE

Letter Mail & Mail Solutions

Media Post

Branch Services

1,958EUR m

Revenue

Mail & Branch Network – Letter mail– Direct mail – Newspapers/magazines – Branch/financial services

Parcel & Logistics

– Parcels– Express mail items– Fulfilment & cash transport– E-commerce services

Revenue 2018: EUR 1,412m Revenue 2018: EUR 552m

Group Revenue 2018: EUR 1,958m EBIT 2018: EUR 211m

Revenue Mix 2018

INVESTOR PRESENTATION Investor Relations June, 2019INVESTOR PRESENTATION Investor Relations June, 2019 4

CLEAR CAPITAL MARKET POSITIONING

Attractive dividend policy

Solid and profitable business model

1,834 1,820 1,791 1,839 1,862 1,864 1,904 1,896 1,939 1,958

523 531 557 527 505 500 498 135

6.3% 6.7% 7.1% 7.7% 7.9% 8.3% 8.2%10.0% 10.7% 10.8%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenuetrans-o-flexEUR mRevenue excl.trans-o-flexEUR mEBIT margin %

21

183156 151

172154 159 161 157

171 162

38.0% 40.3% 42.1% 41.8% 42.6% 42.1% 39.8% 43.5% 41.7% 41.6%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Operating freecash flowEUR m

Equity ratio %

3

1.50 1.60 1.70 1.80 1.90 1.95 1.95 2.00 2.05 2.08

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Dividend pershareEUR

149 157168

182 186197 198 202 208 211

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

EBITEUR m

Guidance

2

Strong balance sheet and solid cash flow

Reliability (“Promise & Deliver“)

1 Adjustment of revenue reporting in the Parcel & Logistics Division. Exported services recognised according to the net method (previously recognised as revenue and expenses for services used).

2 EBIT adjusted for special effects

3 2009-2017: Free cash flow before acquisitions/securities and new corporate headquarters and adjustedfor significant property sales 2018: Free cash flow before acquisitions/securities and growth CAPEX, excl. special effect BAWAG P.S.K.

2 EBIT adjusted for special effects

4

4 Proposal to the Annual General Meeting on April 11, 2019

INVESTOR PRESENTATION Investor Relations June, 2019INVESTOR PRESENTATION Investor Relations June, 2019

HIGHLIGHTS Q1 2019

Outlook 2019– Still aiming for stability

in revenue and operating earnings in the core business

5

Earnings– EBIT rise of 1.3% to

EUR 57.4m due to solid revenue development and cost discipline

Revenue– Revenue up by 0.4% to

EUR 492.5m

– Mail decline of 1.4% compensated by 6.7% parcel growth

Investment programme 2018-2021– Completion of first parcel

distribution centre (Hagenbrunn) in the summer of 2019

– Ground-breaking ceremony for second parcel distribution centre (Kalsdorf/Graz) in March 2019 – planned completion mid-2020


SLIGHT REVENUE IMPROVEMENT THANKS TO ROBUST MAIL BUSINESS AND PARCEL GROWTH

Revenue developmentEUR m

Group: +0.4%– Slight revenue increase due to mail decline and good

parcel growth

Parcel & Logistics: +6.7%– Ongoing positive e-commerce trend, increase in

revenue despite own delivery by a large customer in Vienna

Mail & Branch Network: -1.4%– Continuing letter mail volume decline– Positive effects from elections and new product/rate

structure– Decrease in addressed/unaddressed direct mail– Decline in financial services revenue related to gradual

redimensioning in 2019

359.6 354.7

132.2 141.0

490.6 492.5

Q1 2018 Q1 2019

Mail & Branch Network

Parcel & Logistics

+6.7%

-1.4%

+0.4%


+1.7 -1.2 +0.2

56.7 57.4

EBIT developmentEUR m

7

Mail & Branch Network:– EBIT increase of EUR 1.7m in Q1 2019– Drop in revenue compensated by high cost discipline

Parcel & Logistics: – EBIT negatively impacted due to additional costs to

avoid capacity bottlenecks in the logistics network

Corporate/Consolidation: – Slight EBIT improvement of EUR 0.2m in Q1 2019– Less need to allocate staff-related provisions

IMPROVED OPERATING EARNINGS (EBIT)

Parcel & Logistics

Q1 2018 Mail & Branch Network

Q1 2019Corporate/Consol.

+1.3%


1. Highlights and Overview

2. STRATEGY IMPLEMENTATION


4. Outlook 2019


8


CLEAR STRATEGIC PRIORITIES

Defending market leadership in the core business

01

Safeguarding market position in a competitive environment

Customer orientation and innovation

04

Promotion of self-service solutions and service improvements

Enhancing efficiency and flexibilisation of the cost structure

03

Expansion of logistics infrastructure and process optimisation

Profitable growth in selected markets

02

Focusing and performance enhancement


416 426 408 401 378 379 342

939 931 866 832 763 728 723

1,355 1,3571,274 1,233

1,141 1,107 1,065

2012 2013 2014 2015 2016 2017 2018

Ø -4%

-3.8%

1 Adjusted reporting due to automated calculation

1

Media Post (addressed)Letter Mail (addressed)

Letter Mail/Addressed Media Post (millions of items)

– Basic trend of electronic substitution continues

10

01 LETTER MAIL IN AUSTRIA

Current Letter Mail trends Q1 2019

– Volume decline due to e-substitution (operating decline Letter Mail about 3.5%, annual expectation about 5%)

– New product structure as at July 1, 2018 is well received – 40:60 volume split between PRIO (next-day delivery) vs. ECO (2-3 days delivery)

– Positive effects in Q1 2019 from elections and special mailings (banks, insurance companies)


0.731.09

1.221.07

1.510.72

0.77

1.230.82

0.750.86

0.95

0.88

0.870.81

0.700.73

0.700.67

0.53

0.42

2.801.89

1.511.33

1.251.24

1.141.11

1.050.99

0.990.98

0.970.96

0.930.93

0.900.850.80

0.770.720.72

0.630.62

0.580.50

0.35

Spain

Denmark

Italy

Iceland

Poland

Croatia

Finland

Romania

Czech Republic

Norway

Slovakia

Bulgaria

France

Belgium

Ireland

Lithuania

Estonia

Greece

Latvia

Hungary

Portugal

Netherlands

Austria

UK

Sweden

Germany

Luxembourg

Switzerland

Slovenia

Cyprus

Malta

3.113.154.42

11

01 INTERNATIONAL TREND: PRIORITY AND NON-PRIORITY RATES IN EUROPE

EUR, May 2019

Standard letter <20gNational (adjusted forpurchasing power)

Non-Priority (Economy)

Priority

Austrian price level still in the lower third in Europe


addressedunaddressed

12

01 DIRECT MAIL IN AUSTRIA

Current Direct Mail/Media Post trends Q1 2019

– Volume decline in Austria about 4%

– Structural decline in addressed volumes (due to GDPR) as well as with newspapers and magazines

– Unaddressed Direct Mail negatively impacted by decline in retail sales and shift effects relating to Easter holidays

645 652 615 587 592 603 550

3,822 3,659 3,703 3,777 3,630 3,834 3,667

4,467 4,311 4,319 4,364 4,222 4,437 4,218

2012 2013 2014 2015 2016 2017 2018

Ø -1%

-4.9%

-0.1%

Direct Mail/Unaddressed Media Post (millions of items)

– 2018 direct mail volumes back to 2016 level after positive special effects in 2017


5057 59

6570

7480 81

97

108

~150

'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '22

Market development Q1 2019

– Austrian parcel market shows good growth in the high single-digit range

– Intense competition, ongoing own delivery by a large customer in Vienna

– High demands with respect to delivery speed

Volume forecasts

– Short-term target: 150m parcels p.a.

– Medium-term target: doubling of volumes and sorting capacity

13

01 PARCEL & LOGISTICS BUSINESS IN AUSTRIA

+115%

Parcel volumes of Austrian Post(millions of parcels)

150m parcels likely to be achieved

earlier due to the partnership with

DP DHL


01 AUSTRIAN POST AS A DELIVERY PARTNER OF DEUTSCHE POST DHL GROUP

– Austrian Post will become a delivery partner of the

Deutsche Post DHL Group in Austria

– Talks initiated with competition authorities in Austria;

decision expected by mid-2019

– Austrian Post plans to take about 200 employees and

selected sites (investments of about EUR 15m in sorting

technology)

10 delivery bases (rented)

3 distribution centres (rented)

Enns

Graz

Vienna

MötzMeiningenJenbach

SalzburgHallein

SpittalKlagenfurt

Oberwart

Ottensheim

St. Michael– Preparations on the part of Austrian Post to

start delivering parcels on behalf of Deutsche

Post DHL Group in the summer of 2019


AUSTRIA

– Expand vertical integration in e-commerce (Systemlogistik, e-commerce enabler ACL)

CEE/SEE

Focus on profitable parcel growth

– Positive revenue development

– Strong competition and price pressure

02 GROWTH IN SELECTED MARKETSGrowth focus on Parcel & Logistics

GERMANY

Austrian Post International

– Intense competition in the international mail business, revenue of EUR 12.8m in Q1 2019

AEP (51% share, at-equity consolidation)

– Pharmaceutical wholesale joint venture

– Revenue up by 12.2% in Q1 2019 to EUR 113.7m

TURKEY Aras Kargo (25% stake, not consolidated):

– Operational level: parcel volume increase of 5% in Q1 2019, revenue of EUR 49.7m in Q1 2019

– Ongoing arbitration proceedings and discussions with family owners about increased shareholding


02 AUSTRIAN POST BRANCH NETWORK: 1,800 POSTAL SERVICE POINTS TO PROVIDE A FOCUSED SERVICE OFFERING

1. Postal Products

2. Telecommunications and retail goods

3. Financial Services

– The objective is for Austrian Post to continue offering financial services after 2020

– First step was taken thanks to partnership with GRAWE Banking Group

– Austrian Post acquires 80% of Brüll Kallmus Bank (GRAWE Banking Group)

– Contribution of EUR 56m via capital increase following regulatory approval

– Independent, nationwide financial services offering, development of a service offering with additional partners

Postal Service Points of Austrian Post

+18.5%

1,302

423

2101,368

1,5121,791

2008 2018

Postal Partners

Post Branches


81~70

58

~15

~25

>50

83

105 103 102

139

2014 2015 2016 2017 2018 2019 2020 2021

HAGENBRUNN PARCEL CENTRE (LOWER AUSTRIA)

KALSDORF PARCEL CENTRE (STYRIA)

17

03 CAPACITY DRIVE 2018-2021Increasing volume forecasts lead to an accelerated investment programme

CAPEX (EUR m)1

Growth CAPEX Parcel capacity expansion (annual allocation depends on projects)

Maintenance CAPEX

1 2014-2017 incl. CAPEX new corporate headquarters

2019: Growth CAPEX of more than EUR 50m planned; + properties - about EUR 25m+ sorting technology due to DHL-

cooperation about EUR 15m


Existing sites

New sites/expansion

03 EXPANSION OF LOGISTIC INFRASTRUCTURE IN AUSTRIA

CARINTHIA

TYROLVORARL-

BERG

SALZBURG

STYRIA

VIENNA

LOWER AUSTRIAUPPER AUSTRIA

PARCEL CENTRE KALSDORF

PARCEL CENTRE VIENNA-SOUTH

PARCEL CENTRE HAGENBRUNN

PARCEL CENTRE VORARLBERG

18


03 STAFF STRUCTURE IN AUSTRIA Full-time equivalents in the Austrian core business(average for the period)

12,039 11,229 10,480 9,926 9,329 8,625 8,042 7,644 7,058 6,610 5,789

9,397

7,8837,247

6,7886,230

5,7925,416

4,9224,524 4,336

4,076

490

1,8912,490

3,3503,858

4,3744,775

5,1275,881 6,353 7,496

21,92621,003

20,217 20,06419,417

18,790 18,233 17,692 17,463 17,299 17,361

2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 2018 Q1 2019

New collective wage agreement since 2009

Old CWA before 2009

Civil servants

-

Medium-term trend:Ongoing structural change towards employees under the new collective wage agreement

Change Q1 2018/Q1 2019-821 Civil servants-260 Employees old CWA

+1,143 Employees new CWA

+63 Employees

+63 FTE

INVESTOR PRESENTATION Investor Relations June, 2019Number of self-solutions Items/month

20

04 SELF-SERVICE AS A COMPETITIVE ADVANTAGESteady increase in usage

Jun.12 Jan. 12 Mar. 19 Nov.13 Mar. 19 Mar. 19

37,612 pick-up boxesQ1 2019: >641,000 items

51,274 boxes at pick-up stationsQ1 2019: >920,000 items

416 drop-off boxesQ1 2019: >1.4m items




3. GROUP RESULTS 2018 AND Q1 2019

4. Outlook 2019


21


EUR m 2017 2018 % ∆ Q4 2017 Q4 2018

Revenue 1,938.9 1,958.5 1.0% 19.6 534.3 542.1

Other operating income 112.7 96.2 -14.7% -16.5 69.5 22.3

Raw materials, consumables and services used -409.9 -441.2 -7.6% -31.3 -113.4 -128.0

Staff costs -1,020.1 -1,008.7 1.1% 11.4 -275.3 -251.8

Other operating costs -325.0 -295.7 9.0% 29.3 -118.3 -84.5

At equity consolidation -1.9 -3.6 -85.4% -1.7 -0.8 -1.9

EBITDA 294.6 305.4 3.7% 10.8 95.9 98.3

EBITDA margin 15.2% 15.6% - - 17.9% 18.1%

Depreciation, amortisation and impairment -86.8 -94.5 -8.9% -7.7 -28.0 -29.4

EBIT 207.8 210.9 1.5% 3.1 67.9 68.9

EBIT margin 10.7% 10.8% - - 12.7% 12.7%

Other financial result 12.8 -13.1 <-100% -25.9 12.2 -17.3

Income tax -55.6 -53.6 3.6% 2.0 -20.9 -12.7

Profit for the period 165.0 144.2 -12.6% -20.8 59.1 38.9

22

KEY INCOME STATEMENT INDICATORS 2018

2017: positive net effect from claims related to non-wage costs paid in previous periods amounting to EUR 21.0m

2017: disposal of stake in BAWAG Group AG forEUR 11.0m 2018: EUR 14.4m valuation effect for shares in FinTech Group AG

1 99.0% of Austrian Post revenue is generated in the eurozone. For this reason, there are no material currency translation effects.

Planned depreciationincreased by EUR 7.8m compared to 2017 incl. one-off effect from replacement of mobile phones

Revenue increase, moderate decline of mail revenue and strong parcel growth


MAIL & BRANCH NETWORK: INCOME STATEMENT 2018

1 EBIT margin/EBITDA margin in relation to total revenue

EUR m 2017 2018 % ∆ Q4 2017 Q4 2018

Revenue 1,447.8 1,412.3 -2.5% -35.6 392.5 384.9

• Letter Mail & Mail-Solutions 782.8 804.8 2.8% 22.0 208.7 219.6

• Direct Mail 413.3 382.6 -7.4% -30.7 115.0 104.7

• Media Post 137.1 131.2 -4.3% -6.0 40.3 38.4

• Branch Services 114.6 93.7 -18.2% -20.9 28.5 22.2

Revenue intra-Group 101.7 112.9 11.0% 11.2 29.8 33.2

Total revenue 1,549.5 1,525.2 -1.6% -24.4 422.3 418.1

EBITDA 312.8 311.2 -0.5% -1.6 95.0 97.2

EBITDA margin1 20.2% 20.4% - - 22.5% 23.3%

Depreciation, amortisation and impairment -23.2 -21.4 7.7% 1.8 -5.5 -6.5

EBIT 289.6 289.8 0.1% 0.2 89.6 90.7

EBIT margin1 18.7% 19.0% - - 21.2% 21.7%

Good development due to one-off mailings, e-commerce and new product structure

Redimensioning of financial services and change in reporting for mobile telephony products (IFRS 15)

Stable EBIT due to high cost discipline and synergy effects from integrated delivery

Market exit from CEE/SEE and changed product assignment


EUR m 2017 2018 % ∆ Q4 2017 Q4 2018

Revenue 495.6 552.4 11.5% 56.9 143.1 159.6

• Premium 240.7 266.1 10.6% 25.5 69.3 77.8

• Standard 219.0 229.6 4.8% 10.6 63.5 66.2

• Other Parcel Services 35.9 56.6 58.0% 20.8 10.3 15.6

Revenue intra-Group 4.8 4.9 2.1% 0.1 1.3 1.3

Total revenue 500.4 557.4 11.4% 57.0 144.4 160.8

EBITDA 58.1 54.9 -5.5% -3.2 18.6 20.1

EBITDA margin1 11.6% 9.8% - - 12.9% 12.5%

Depreciation, amortisation and impairment -15.2 -13.6 11.1% 1.7 -4.7 -5.4

EBIT 42.8 41.3 -3.5% -1.5 13.9 14.7

EBIT margin1 8.6% 7.4% - - 9.6% 9.1%

PARCEL & LOGISTICS DIVISION: INCOME STATEMENT 2018

24

Overall 8.1% organic revenue growth, +10.0% in Austria


EBIT margin of 7.4%, additional expenditures due to capacity bottlenecks

Revenue increase mainly related to full consolidation of ACL advanced commerce labs and segment change of Weber Escal


699.1

551.1

420.6

10.3

1,681.2

EQUITY & LIABILITIES

652.8

83.3

439.9

139.5

365.8

1,681.2

ASSETS

25

SOLID BALANCE SHEET STRUCTUREBalance sheet as at December 31, 2018EUR m

Financial liabilities of only EUR 10m

Equity ratio of 41.6%Equity

Provisions

Liabilities/Other

Other financial liabilities

Cash and cash equivalents/Securities1

Financial assets/Investment property

Receivables/Inventories/Other

Property, plant and equipment

Intangible asssets

Liquid financial resources of EUR 366m

1 Securities are recognised on the balance sheet under other financial assets.

51106

188

206

Structure of provisions (EUR m)

Employee under-utilisation

Statutory and contractually compulsory employee benefits

Other staff-related provisionsOther provisionsIncl. goodwill of EUR

58.7m

NO PENSIONOBLIGATIONS


352.9

295.9

-81.3

+17.3 231.9

-58.1-15.4

158.4

Gross cashflow

Cash flow fromoperatingactivities

MaintenanceCAPEX

Other Free CF beforeacquisitions/securities andgrowth CAPEX

GrowthCAPEX

Acquisitions/changes insecurities/

Various

Freecash flow

26

ROBUST CASH FLOW IN 2018Cash flow developmentEUR m

Free cash flow impacted by special effects:

– BAWAG special payment of EUR 107.0m includes services of EUR 37.0m rendered in the reporting period and special effects of EUR 70.0m

– Increased maintenance and growth CAPEX (EUR 139.4m vs. EUR 102.1m)

1 Cash flow from operating activities and the acquisitions/changes in securities are adjusted for the effect of temporary cash holdings not yet transferred to customers. 2 Free cash flow before acquisitions/securities and CAPEX new corporate headquarters, adjusted for the effect of temporary cash holdings not yet transferred to customers. 3 2017: CAPEX new corporate headquarters; 2018 incl. remaining payment for “Post am Rochus”

316.6 248.81 -77.8 +0.4 171.42 -24.3 -0.61 146.62017

3


EUR mQ1 2018 Q1 2019 % ∆

IFRS 16 effects

Revenue 490.6 492.5 0.4% 1.9 -

Other operating income 34.6 21.0 -39.3% -13.6 -

Raw materials, consumables and services used

-103.9 -110.3 -6.1% -6.4 -

Staff costs -274.0 -251.7 8.1% 22.3 -

Other operating costs -70.3 -66.3 5.6% 4.0 +8.1

At equity consolidation -0.6 -0.7 -8.2% 0.0 -

EBITDA 76.5 84.6 10.7% 8.2 +8.1

EBITDA margin 15.6% 17.2% - - -

Depreciation, amortisation and impairment -19.8 -27.2 -37.7% -7.4 -7.7

EBIT 56.7 57.4 1.3% 0.7 +0.4

EBIT margin 11.6% 11.7% - - -

Other financial result 1.7 3.4 >100% 1.8 1.1

Income tax -16.5 -17.5 -6.0% -1.0 -

Profit for the period 41.8 43.3 3.5% 1.5 -0.7

27

KEY INCOME STATEMENT INDICATORS Q1 2019

Stable wages and salaries, higher need to allocate provisions in Q1 2018

3.5% increase in the profit for the period

IFRS 16 effect: Drop in rents/leases of EUR 8.1m, increased depreciation and amortisation of EUR 7.7m

Revenue increase implying mail decline and good parcel growth

Q1 2019: Valuation effect of stake in FinTech Group AG of EUR 5.4m

Q1 2018: EUR 20m one-off income from dissolution of cooperation with BAWAG P.S.K.


EUR m Q1 2018 Q1 2019 % ∆

Revenue 359.6 354.7 -1.4% -4.9

• Letter Mail & Mail-Solutions 202.2 208.2 2.9% 6.0

• Direct Mail 100.0 94.0 -6.0% -6.0

• Media Post 32.2 30.7 -4.7% -1.5

• Branch Services 25.2 21.8 -13.3% -3.4

Revenue intra-Group 27.2 29.7 9.2% 2.5

Total revenue 386.8 384.4 -0.6% -2.4

EBITDA 78.6 81.1 3.2% 2.5

EBITDA margin1 20.3% 21.1% - -

Depreciation, amortisation and impairment -5.0 -5.8 -15.4% -0.8

EBIT 73.6 75.3 2.4% 1.7

EBIT margin1 19.0% 19.6% - -

28

MAIL & BRANCH NETWORK: INCOME STATEMENT Q1 2019

Positive effects from elections and new product/rate structure

Gradual redimensioning of financial services offering in 2019

Higher EBIT related to high cost discipline and synergy effects from integrated delivery

Uncertainty due to GDPR and decline in retail sales



EUR m Q1 2018 Q1 2019 % ∆

Revenue 132.2 141.0 6.7% 8.8

• Premium 61.9 68.9 11.2% 6.9

• Standard 57.0 58.0 1.9% 1.1

• Other Parcel Services 13.3 14.1 6.1% 0.8

Revenue intra-Group 1.3 1.1 -19.4% -0.3

Total revenue 133.5 142.1 6.4% 8.5

EBITDA 13.6 13.7 0.8% 0.1

EBITDA margin1 10.2% 9.6% n.a. -

Depreciation, amortisation and impairment -2.7 -4.0 -47.1% -1.3

EBIT 10.9 9.7 -10.8% -1.2

EBIT margin1 8.1% 6.8% - -

PARCEL & LOGISTICS DIVISION: INCOME STATEMENT Q1 2019

29

Revenue growth despite own delivery by a large customer in Vienna


Decline of EBIT margin to 6.8% due to additional costs to avoid capacity bottlenecks in logistics network


925.2

84.5

416.7

149.7

1,980.1

31.03.2019

404.0

737.5

567.8

401.2

273.5

1,980.1

31.03.2019

699.1

551.1

420.6

10.3

1,681.2

31.12.2018

652.8

83.3

439.9

139.5

365.8

1,681.2

31.12.201830

CHANGE IN BALANCE SHEET STRUCTURE DUE TO IFRS 16Balance sheet as at March 31, 2019EUR m

Equity ratio of 37.2% Equity

Provisions

Liabilities/Other

Other financialliabilities

Cash and cash equivalents/Securities1

Financial assets/Investment property

Receivables/Inventories/Other

Property, plant and equipment

Intangible assets

1 Securities are recognised on the balance sheet under other financial assets.

55

116

197

201

Structure of provisionsEUR m

Employee under-utilisation

Provisions for social captial

Other staff-related provisions

Other provisions

IFRS 16: Lease liabilities of EUR 270m

Liquid financial resources of EUR 404m

ASSETS EQUITY & LIABILITIES

IFRS 16: Capitalisation of right-of-use assets from leases of EUR 270m


ROBUST CASH FLOW IN Q1 2019Cash flow developmentEUR m

72.3

-9.9 -1.6

60.8

-9.8 -2.1

49.0

Cash flow fromoperatingactivities

MaintenanceCAPEX

Other Free CF beforeacquisitions/securities andgrowth CAPEX

GrowthCAPEX

Acquisitions/divestments

Free CF before moneymarket/securities

investments

1 Less special effects of EUR 95.9m relating to BAWAG P.S.K.

Operating free cash flow of EUR 60.8m– Financial service fee of EUR 7.7m for Q1 2019 already included in cash flow of 2018– IFRS 16-effect: Expense of EUR 8.1m included in cash flow from financing activities

80.01 -24.7 -0.2 55.11 -16.2 -0.6 38.31Q1 2018





4. OUTLOOK 2019


32


OUTLOOK 2019

33

Revenue– Stable to slightly higher revenue expected for 2019,

depending on the start of the planned cooperation with Deutsche Post DHL Group– Assuming a further increase in parcel revenue and a drop in mail revenue

Earnings– Target of generating stable operating earnings in the core business

Investments/CAPEX– Parcel volume forecasts have led to acceleration of growth investments – Growth CAPEX in excess of EUR 50m, additional property purchases of EUR 25m to be expected and investments in sorting

technology due to the cooperation with DHL of EUR 15m to be expected– Basic investments (maintenance CAPEX) of about EUR 70m– Important first step for future financial services business: agreement on EUR 56m capital increase following the regulatory

approval

Market environment– Up to 5% annual decline in Addressed Letter Mail volumes– Structural decrease in Direct Mail volumes, also affected by data protection regulations– Growth in the parcel market against the backdrop of intense competition and demand for high quality; ongoing own delivery

by a large customer in Vienna





4. Outlook 2019

5. ADDITIONAL INFORMATION

34


– Responsibility for Branch Network and Private Customers

– Responsibility for Mail and Direct Mail

– Responsibility for Parcel

– Group Management /Central Functions

– Financial Function/Cross-Section Function

– Logistics Infrastructure

MANAGEMENT BOARD WITH NEW ALLOCATION OF RESPONSIBILITIES SINCE JANUARY 1, 2019

Georg PölzlChairman of the Management Board Chief Executive Officer

Walter OblinDeputy Chairman of the Management Board Mail & Direct Mail, Finance

Peter UmundumMember of the Management Board Parcel & Logistics, LogisticsNetworks


CORPORATE GOVERNANCE – SUPERVISORY BOARD

Edith HLAWATIChairwomanLawyer

Edeltraud STIFTINGERDeputy ChairwomanManaging Director of AWS GmbH

Jochen DANNINGERManaging Director ecoplus. The Business Agency of Lower Austria

Huberta GHENEFFLawyer/Partner Gheneff-Rami Attorneys at Law

Peter E. KRUSEManagement Consultant

Chris E. MUNTWYLERCEO Conlogic AG

Herta STOCKBAUERFinancial expertCEO BKS Bank AG

Stefan SZYSZKOWITZCEO EVN AG

+4 EMPLOYEE REPRESENTATIVES

1 Employee representative

8 SHAREHOLDER REPRESENTATIVES

All shareholder representatives of Austrian Post are independent.

– Executive Committee (Hlawati, Stiftinger) – Nomination committee (Hlawati, Stiftinger, Köstinger1) – Remuneration Committee (Danninger, Hlawati, Stiftinger)

– Audit Committee (Gheneff, Stiftinger, Stockbauer, Szyszkowitz, Köstinger1, Wiedner1)

– Parcel & Logistics Committee (Kruse, Muntwyler, Köstinger1)


REMUNERATION SYSTEM – MANAGEMENT BOARD

Remuneration creates incentives for long-term value enhancement

Fixed basic salary

Long Term Incentive ProgrammeFocus on long-term value enhancement in line with shareholder interests – Own investment in shares as basis for

participation– 3 years performance period – Target values for key indicators

– Earnings per Share– Total Shareholder Return vs. Peers– Free Cash Flow

Variable salaryList of targets with measurable, quantitative performance indicators and qualitative target achievement components– In addition to financial indicators,

targets focus non-financial indicators such as customer orientation and sustainability


SHAREHOLDER STRUCTURE BY COUNTRY

52.8%

19.2%

12.2%

9.8%

5.7%

<1%

Austria

NorthAmerica

Europe

UK & Ireland

Rest of World

ÖBAG

– Market capitalisation of about EUR 2.0bn– 53% owned by the Austrian Industry Holding

ÖBAG (ÖBAG administers some investments of the Austrian state)

– 47% free float – Well-balanced shareholder structure, regionally

diversified – Mainly investors with long-term orientation

(e.g. pension funds) – Value and yield investors are the largest

investor groups

base 67.6m shares

38


SHARE PRICE DEVELOPMENT AND TOTAL SHAREHOLDER RETURN

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

220%

240%

260%

280%

300%

320%

340%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Austrian Post +57.9%

ATX -22.6%

EURO STX. Transp. +24.1%

SHARE PRICE SINCE 01/01/2018:

Austrian Post: -0.1%

EURO STOXX Transp.: +12.1%

PE-RATIO FY 2019E:

Austrian Post: 12.9

Peers1: 8.9

DIVIDEND YIELDFY 2019E:

Austrian Post: 5.8%

Peers1: 6.3%

Total Shareholder Return +186.5%

1 Peers: Deutsche Post, Bpost, PostNl, Royal Mail,Source: Bloomberg 31/05/2019

EUR 19.00

EUR 30.00

31/05/1930/05/06


SHARE PRICE DEVELOPMENT AUSTRIAN POST AND PEERS1/1/18 – 31/05/19

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

120%

130%

140%

01/18 02/18 03/18 04/18 05/18 06/18 07/18 08/18 09/18 10/18 11/18 12/18 01/19 02/19 03/19 04/19 05/19

-19.8% Austrian Post

-33.6% DP/DHL

-65.3% bPost

-54.7% Royal Mail-60.7% PostNL

-33.8% CTT


CORPORATE SOCIAL RESPONSIBILITY: STRATEGY AND RATINGSAustrian Post is PRO ACTIVE! in 4 dimensions

PRO ACTIVEfor society

PRO ACTIVEfor the economy

PRO ACTIVEfor employees

PRO ACTIVEfor the

environment

Prime Status

Included in theVÖNIX Sustain-ability Index

AAA Best in class

Energy Globe Award

CDP Climate A-Rating


POST PRO AKTIV! SUSTAINABLE FOR AUSTRIA

42

– 6.9% dividend yield (as at Dec. 31, 2019)

– Increase in EBIT for9 years in a row

– 1,791 postal service points

– EUR 817m paid in wages, salaries and social security contributions

– EUR 15.9m employee participation bonus (paid in 2018 for 2017)

– 3 photovoltaic plants with a module surface of more than 9,000 m² (>2 soccer fields)

– 1,600 e-vehicles, all deliveries CO2 neutral

– EUR 6.1m in voluntary social benefits


8621,012

1,387 1,4231,592

'14 '15 '16 '17 '18 '30e

Multi-track Single-track

43

PRO ACTIVE FOR THE ENVIRONMENTAustrian Post as a trailblazer in green logistics

Every mail item in Austria is subject to CO₂ NEUTRAL DELIVERY!

Avoid emissions and increase efficiency

01

Alternative technologies

02

Compensation through environmental protection projects

03

Renewable energy E-mobility Expansion of e-mobility

1.5 MWpeak

1,400,000 kWh/aEurope‘s largest Nissan e-vehicle fleet

Target 2030: 100% electric-powered vehicles on the last mile


Austrian PostInvestor RelationsRochusplatz 1, 1030 ViennaWebsite: post.at/irE-mail: [email protected]: +43 57767-30401

CONTACT

Financial calendar 2019August 9, 2019 Half-Year Financial Report 2019November 14, 2019 Interim Report Q1-3 2019

DisclaimerThis presentation contains forward-looking statements, based on the currently held beliefs and assumptions of the management of Austrian Post, which are expressed in good faith and, in their opinion, reasonable. These statements may be identified by words such as “expectation“ or “target“ and similar expressions, or by their context. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of Austrian Post, or results of the postal industry generally, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on the forward-looking statements. Austrian Post disclaims any obligation to update these forward-looking statements to reflect future events or developments.

Austrian Post | Legal form: limited company under Austrian law | Registered seat in the Municipality of Vienna | Commercial register number: FN 180219d of the Commercial Court of Vienna. This presentation can contain legally protected and confidential information and is protected by copyright. The reproduction, dissemination or duplication of this presentation, either in part or as a whole, requires the express written permission of Austrian Post.

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