Investor Presentation. January 2007

Transcription

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2 Austrian Post divisional breakdown Mail Parcel & Logistics Branch Network Pro-forma Group 1 Sales Split Branch Network 9% Parcel & Logistics 31% Letter Direct mail Newspapers and periodicals Parcels Express deliveries Postal services Financial and insurance products Retail products Mail 60% July 2005 to June 2006 Sales: 1 Post: 1,303m Post: 222m Post: 197m + trans-o-flex: 460m Post: 1,727m Pro-forma: 2,187m (1) Austrian Post external sales based on IFRS (incl. Others/Consolidation); trans-o-flex total sales based on German GAAP (management reporting). 2

3 Regional presence of Austrian Post Austrian Post will operate in a combined market with a total population of approx.120m people. Netherlands Development of business operations since June 2006 Specialisation in line with trans-o-flex strengths: life sciences, pharmaceuticals and electronics Germany Leading market position in combined freight and B2B express delivery for life sciences / pharmaceuticals Slovakia #2 in B2B parcels #2 in unaddressed direct mail Austria #1 in letter mail #1 in addressed direct mail #1 in unaddressed direct mai #1 in X2C parcels #1 in Media Post Croatia #2 in parcels #1 unaddressed direct mailings Hungary #1 in unaddressed direct mail 3

4 Strengths of Austrian Post Nationwide access: every door, every day Good value for money: high quality at a moderate price level Stable and reliable logistics network in letter mail and parcel business Austrian-wide branch network for retail customers Customer knowledge and customer loyalty High entry barriers for competitors Clear "defend & expand" strategy 4

5 Three avenues to sustainable value growth 1 Optimise core domestic business in a liberalised market environment 2 Create new areas of competence 3 Re-define the geographical focus 5

6 Highlights /2006 Revenue increase in all divisions Mail + 1.9% Parcel & Logistics + 8.6% Branch Network + 5.2% Successful acquisitions 1) Kolos (Slovakia) / Unaddressed advertising Wiener Bezirkszeitung (Austria) / Media Post Weber Escal (Croatia) / Unaddressed advertising Trans-o-flex (Germany) / B2B parcel&logistics 2) Earnings before interest and tax (EBIT) up 26.5% to EUR 93.7m Operating cash flow rose 3.4% to EUR 193.6m 1) Kolos at 30 September; fully-consolidated; Wiener Bezirkszeitung consolidated as an associate company; Weber Escal to be consolidated in ) Signing per 27 October 2006; Closing of the 75% shareholding expected at the end of

7 Mail Division Highlights 2006 No noticeable effects so far of liberalisation as per 1 January 2006 (50-100g) Good business development: Letter Mail business area posted slight decline, as expected, Infomail and Media Post business grew Further international acquisitions following Kolos (Slovakia) now Weber Escal (Croatia) Market leader in Croatia with 40% market share 90m unaddressed advertising items EU Commission presented draft of a new postal service directive, to be considered by the EU Parliament and the EU Council. 7

8 Status Quo of Postal Liberalisation in Europe Fully liberalised markets Liberalised markets in accordance with EU guidelines (reserved area <50g) Markets liberalised less than prescribed by EU regulations Countries currently not required to abide by EU regulations SWE and FIN: Complete market liberalisation since 1993 UK: Since : full market liberalisation Bulgaria: Monopoly : 150g : 50g Spain: Services liberalised between cities 8

9 Liberalisation: next steps New EU postal directive New postal law October/November 2006 November/ December at the earliest - p r o b a b l y - Study of the EU Commission & draft of the 3rd Postal Directive Forewarding of directive Draft EU Parliament And EU Council Negotiations on EU level Negotiations on national level Amendment to the Postal Act European wide liberalization implemented EU Council (Approval with 72% of votes required) EU Parliament 3rd Postal Directive Implementation in member states 9

10 Standpoints of other EU postal service providers La Poste, De Post/La Poste, Magyar Posta, Poste Italiane, Elta Greece, Correos Spain, P&T Luxembourg, Cyprus Post, Poczta Polska Full scope of universal service obligation must be retained Core issue: financing of universal postal services (unresolved). Financing issue must be resolved before market is liberalised. Deutsche Post, TNT, Posten Sweden, Post Finland EU-Liberalisation in 2009 (Germany 2008) A modern universal postal service should reflect current market developments. Regulations: Light is right Austrian Post: Liberalisation when general conditions are met: fair competitive environment (flexibility), same rights for all providers (no asymmetrical market liberalisation) Universal services: product-oriented standards for all market participants; universal services oriented to the basic needs of people today 10

11 Parcel & Logistics Division Highlights 2006 Growth of parcels business in Austria for private customers; Internet orders as growth driver Parcels for business customers (B2B) market entry proceeded as planned Very successful cooperation with trans-o-flex (5,000 parcels/day) Acquisition of 74.9% of trans-o-flex a milestone and platform for further growth 11

12 Acquisition of trans-o-flex: one of the leading specialized logistics providers within the German B2B market Logistics network with 39 delivery centers Attractive business model with combined freight (parcels and pallets) and recipient-oriented aggregation of shipments Successful niche focus Life Sciences Consumer Electronics/Home Entertainment Lifestyle/Cosmetics Leading market position in the Life Sciences industry Additional special services such as temperaturecontrolled delivery and transportation of hazardous goods Lean structure with high degree of outsourcing Long-lasting relationships with blue-chip customers Sales of approx. 460 million and EBITDA of approx. 27 million in the twelve months up to and including June

13 trans-o-flex has a successful industry niche focus Strong focus on life sciences, consumer electronics/home entertainment and lifestyle/cosmetics Life sciences Lifestyle / Cosmetics Pharmaceuticals Dental Radio pharmaceuticals Diagnostics Laboratory 55% 9% Pharmacy cosmetics Perfumes Skin care Hair care products Consumer electronics / Home entertainment 13% Other Computer hardware Software Picture and sound storage mediums Consumer electronics Office and information technology 23% Automotive Print / publisher Food Chemical products Gardening tools Textiles Tobacco Note: Sales split in

14 Blue-chip customer base trans-o-flex has long-lasting relationships with blue-chip customers Life Sciences Consumer Electronics/ Home Entertainment Other Life Style/ Cosmetics Sales by business area (2005) 55% 23% 13% 9% 14

15 Branch Network Division Highlights 2006 Ongoing positive business development Retail products: Strong revenue growth with Mobilcom, Telecom and Internet products Financial services business: Revenue increase demonstrates clearing up of uncertainties connected with BAWAG P.S.K. Ownership change of BAWAG P.S.K. New owner group led by financial inventor Cerberus Invitation to Austrian Post to acquire a stake 1,300 post branches and 600 external partners as core strengths in sales 15

16 Increased revenues and earnings Revenues (EUR m) EBITDA (EUR m) EBIT (EUR m) 1, % 1, % +26.5%

17 Business performance /2006 Key business indicators income statement 2005/2006 EUR m Change in % Q Q Revenue 1, , % Raw material, consumables and services used % Staff costs % Other operating expenses % Earnings before interest, tax, depreciation and amortisation (EBITDA) % Depreciation and amortisation % Earnings before interest and tax (EBIT) % EBIT margin 6.0% 7.4% - 4.5% 6.7% Earnings before tax (EBT) % Income tax % Profit for the period ) % Employees (average full-time equivalents) 25,434 24, % - - 1) Including EUR 9.8m from discontinuing operations 17

18 Key figures by division EUR m Change in % 2005 Revenue 1, , % 1,701.6 Mail % 1,290.8 Parcel & Logistics % Branch Network % Other/Consolidation % 5.2 EBIT % Mail % Parcel & Logistics ,8% 10,4 Branch Network % 8,7 Other/Consolidation ,4-9.2% thereof provision for underutilisation %

19 Mail Division: key indicators /2006 External Sales +1.9% EBIT -2.1% EUR m External Sales Change +1.9% - Letter Mail % 941,1 958,8 194,8 190,8 - Infomail % - Media Post % Total revenue 1) % EBIT ,8-2.1% EBIT margin 2) 19.7% 18.9% Employees (average/fulltime) 15,716 15, % Rise in revenues in quarterly comparison, despite one working day less Infomail (addressed and unaddressed advertising) posted solid growth (+7.2%) Media Post achieved significant Q3 climb in revenues (+5.3% in 9 month comparison) Earnings slightly under previous year s level due to extraordinary writedown of EUR 6.7m 1) External sales plus internal sales per division 2) EBIT refers to total revenues 19

20 Parcel & Logistics Division: key indicators /2006 External Sales EBIT +8.6% % 163,5 150,5 15,9 EUR m External Sales Total revenue 1) Change in % +8.6% +8.5% EBIT % 5,7 EBIT margin 2) 3.1% 7.9% Employees (average/fulltime) 2,463 2, % Revenues climbed 8.6% to EUR 163.5m Increased sales volumes in both B2C (Internet mail order business as growth driver) and in the business parcel segment (B2B) Operating result (EBIT) rose to EUR 15.9m 1) External sales plus internal sales per division 2) EBIT refers to total revenues 20

21 Branch Network Division: key indicators /2006 External Sales +5.2% 145,4 138,2 EBIT +17.4% 7,3 8,5 EUR m External Sales Total revenue 1) Change in % +5.2% +2.2% EBIT % EBIT margin 2) 2.5% 2.8% - Employees (average/fulltime) 5,506 5, % Continual improvement in revenues Very positive development in retail products business (telecommunications) Growth in financial services compared to same period in 2005 EBIT rose to EUR 8.5m despite extraordinary writedown of EUR 3.4m 1) External sales plus internal sales per division 2) EBIT in relation to total revenues 21

22 Cash flow /2006 EUR m Operating cash flow before changes in working capital +/- Changes in working capital % Operating cash flow EUR 22m liabilities for real estate acquisition repaid = Cash flow from operating activities /- Cash flow from investing activities Dividend payment of EUR 40m = Free cash flow /- Cash flow from financing activities Net increase in cash of EUR 126m = Net increase in cash and cash equivalents

23 Improved balance sheet structure 2006 Equity and liabilities: equity ratio of 50% 1, , % Capital and reserves Interest bearing provisions: EUR 400.7m Provision for termination benefits EUR 66.4m Provisions Provision for jubilee benefits EUR 91.9m Provision for employee underutilization EUR 239.9m Financial liabilities Liabilities Non-interest bearing provisions of EUR 129.9m Total volume of provisions: EUR 530.6m EUR m

24 Improved balance sheet structure 2006 Assets: EUR 512m in financial assets, cash and cash equivalents 1,563.0m 1,604.6m EUR m Property, plant & equipment, intangible assets Net increase in cash positions in Dividend payment for Inventories, receivables and other assets = Cash surplus before dividend Financial assets m Cash surplus before 398m Cash and cash dividend expected for full equivalents year 2006 EUR m

25 Upward Adjustment of Forecast for Revenue forecast: stable to slight increase Upward adjustment of the EBIT forecast from 10%-15% to 15%-20% year-on-year 2007 and beyond Dividend of EUR 70m in Q (subject to approval of AGM) Payout ratio of 70% assuming ongoing satisfactory business development and unchanged financial position Consolidation of 75% stake in trans-o-flex Medium-term goal remains: sustainable stabilisation of EBIT margin at 7%-8% 1) 1) Based on present business mix 25

26 Contact / Disclaimer Österreichische Post AG Investor Relations Postgasse Vienna, Austria Investor Relations website: investor@post.at Phone +43 (1) Fax +43 (1) Disclaimer This 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 these forward-looking statements. Austrian Post disclaims any obligation to update these forward-looking statements to reflect future events or developments. 26