AUSTRIAN POST H INVESTOR PRESENTATION. Georg Pölzl/CEO, Rudolf Jettmar/CFO Vienna, August 19, 2011

Transcription

1 AUSTRIAN POST H INVESTOR PRESENTATION Georg Pölzl/CEO, Rudolf Jettmar/CFO Vienna, August 19, 2011

2 1. Highlights and overview 2. Performance of the divisions 3. Group results 4. Outlook 2

3 SUCCESSFUL STRATEGY IMPLEMENTATION 1. DEFENDING MARKET LEADERSHIP IN THE CORE BUSINESS Mail Division performing well in a fully liberalised market Revenue growth of Parcel & Logistics Division in Austria >4% in H1 3. ENHANCING EFFICIENCY AND FLEXIBILITY OF THE COST STRUCTURE Structural transformation in the branch network, already 132 joint outlets with BAWAG P.S.K. Further improved staff cost structure 2. GROWING IN SELECTED MARKETS Performance initiative launched in the Parcel & Logistics business in Germany and Benelux Mail and parcel services on a profitable growth path in South East and Eastern Europe 4. CUSTOMER ORIENTATION AND INNOVATION Product portfolio successfully implemented in the Mail Division From 756 to 1,212 postal partners "CO 2 neutral delivery initiative in Austria 3

4 FINANCIAL HIGHLIGHTS H Higher revenue Revenue up 2.9% 1 on a comparable basis above prioryear level Mail Division +2.1% 1, Parcel & Logistics +6.2% 2 Improved earnings EBITDA of EUR 124.8m (margin of 11.0%) EBIT up 9.1% to EUR 81.3m 3 Cash flow and balance sheet remain solid Operating cash flow before changes in working capital +15.5% to EUR 93.3m Cash and cash equivalents: EUR 264.2m 4 Outlook for 2011 Revenue 2011: continuation of H1 development (+2.9% 1 ) EBITDA margin at upper end of targeted range between 10% and 12% 1 Comparable basis: 2010 excl. meiller Group (pro forma consolidation); 2011: joint venture MEILLERGHP consolidated at equity 4

5 REVENUE IMPROVEMENT OF 2.9% ON A COMPARABLE BASIS EUR m +2.9% 1, , ,137.9 Mail: 2.1% revenue increase 1 Parcel & Logistics: growth of 6.2% Branch Network: revenue and structural change leads to 6.2% decline H meiller H H comp. basis 1 Mail Parcel & Logistics Branch Network H Revenue 2010 and changes excl. meiller Group (pro forma consolidation); 2011: joint venture MEILLERGHP consolidated at equity 5

6 GROUP EBIT INCREASE OF 9.1% EUR m +9.1% % % % Earnings improvement based on revenue increase and improved cost structure in all divisions Corporate: additional provisions of EUR 15.6m allocated for employees transferring to the federal public service H Mail Parcel & Logistics Branch Network Corporate H

7 FURTHER EFFICIENCY INCREASE LEADS TO IMPROVED COST STRUCTURE Number of employees (FTE) ,036 23,250 Number of employees (fulltime equivalents) down by 786 yearonyear Operational staff costs reduced by EUR 15.2m on a comparable basis H H Average for the period excl. meiller Group 7

8 1. Highlights and overview 2. Performance of the divisions 3. Group results 4. Outlook 8

9 MAIL DIVISION: IN H HIGHLIGHTS Letter Mail: stable revenue in the first halfyear Positive effects from the new product portfolio, selfservice products and advance sales Opportunity to choose between Priority and Economy well received by customers: trend towards Economy products expected Infomail: revenue development reflects solid economic growth Revenue: EUR 651.5m EBIT: EUR 130.4m Joint Venture MEILLERGHP achieves operating improvements in the merger phase 9

10 REVENUE OF THE MAIL DIVISION IN 2011 UP 2.1% FROM H Revenue development Letter Mail 4.7% Letter Mail revenue on a stable basis in the first halfyear with +0.2% 3.5% 2.0% 2.2% 2.4% 4.0% Ongoing decline in letter mail volume also in the first half of 2011 Revenue development Infomail 1 6.0% 7.0% Revenue growth for Infomail/advertising mail of 5.6%¹ in the first half of 2011 driven by solid economic growth 1.0% 3.3% 1.5% 4.1% Infomail in Austria +4.2% in H1 Infomail International +18.2% 1 in H1 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 1 Figures 2010 excl. meiller Group (pro forma consolidation); 2011: joint venture MEILLERGHP consolidated at equity 10

11 PARCEL & LOGISTICS DIVISION: H HIGHLIGHTS International and domestic market environment features volume growth, price and cost pressure Austria: volume and market share increase for business parcels Germany: Focus on quality not quantity New customers bring revenue rise Thermomed on a growth path Benelux: restructuring measures intensified Revenue: EUR 410.9m EBIT: EUR 10.3m South East and Eastern Europe: sustainable growth trend 11

12 PARCEL & LOGISTICS DIVISION: REVENUE GROWTH OF 6.2% IN H1 Revenue development Germany/Benelux 5.7% 7.7% 1.8% 5.4% 5.5% 0.4% Revenue development Austria 20.4% 12.3% 2.1% 6.3% 2.9% 5.5% Revenue development South East/Eastern Europe 15.3% 10.7% 11.6% 8.7% 7.9% 11.1% Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Germany/Benelux (transoflex Group): 6.6% revenue increase in H1 mainly due to new customers Austria: Revenue up 4.1% in H1 Premium parcel service: +9.1% Standard parcel service: +2.2% South East and Eastern Europe: good economic situation leads to 9.5% revenue growth in first halfyear 12

13 MASTERPLAN TRANSOFLEX (GERMANY/BENELUX) Objective: Sustainable performance improvement of transoflex Group Restructuring in Benelux Improved product and price portfolio Productivity rise in the delivery network Network streamlining in Belgium Enhanced outsourcing in the Netherlands Structural decision by the end of 2011 Adjustment of price policy for costintensive transport services Focus on profitable revenue growth Productivity programme in the sorting centres Improved capacity utilisation of delivery fleet Objective in 2013: transoflex EBIT margin >3.5% 13

14 BRANCH NETWORK DIVISION: H HIGHLIGHTS Revenue: EUR 75.0m EBIT: minus EUR 7.7m Restructuring of branch network at full swing: from 756 to 1,212 postal partner offices in yearonyear comparison, total network of 1,876 postal service points Changed revenue and cost structure: Compensation for financial services now costbased as planned Declining telecommunications sales Letter mail volume posted at branch offices continues to decline slightly Cooperation with BAWAG P.S.K. helps to focus on the core business: 132 new joint branch offices opened 350 joint outlets planned for

15 BRANCH NETWORK DIVISION: STRUCTURAL TRANSFORMATION Sustainable structural change in the branch network to improve service and cost structure 1, ,300 1,602 1,184 1,807 1,051 1,850 1,866 1,117 1,164 1,876 1, Further conversions Approx. 2,000 Legal minimum of 1,650 Postal partners Companyoperated branches 06/ / / / / /2011 Target 15

16 1. Highlights and overview 2. Performance of the divisions 3. Group results 4. Outlook 16

17 KEY INCOME STATEMENT INDICATORS EUR m H H Change % EUR m Q Q Revenue¹ 1, , % Revenue up 2.9% Raw materials, consumables and services used ¹ % Staff costs ¹ Other operating expenses ¹ Results of at equity consolidation EBITDA % 7.7% 0.0% Decline in staff costs include EUR 15.2m in savings for operational staff costs EBITDA margin % 11.0% 10.4% 9.5% Depreciation and amortisation % EBIT EBIT margin 2 6.5% 7.1% % % % EBIT rise of 9.1% from the prioryear Other financial result % Profit before tax (EBT) % Income tax % Profit for the period % Figures for 2010 and changes excl. meiller Group (pro forma consolidation); 2011: joint venture MEILLERGHP consolidated at equity 2 EBIT and EBITDA in relation to total revenue incl. meiller Group 17

18 MAIL DIVISION: KEY INCOME STATEMENT INDICATORS EUR m H H Change % EUR m Q Q Revenue¹ (external sales) % Revenue rise of 2.1% Letter Mail % Infomail¹ % Media Post % Internal sales % Total revenue 2 EBITDA EBITDA margin % % 2.2% 4.8% % % EBITDA up 4.8% and EBIT rise of 10.2% Depreciation and amortisation % EBIT % EBIT margin % 19.2% 15.4% 19.2% 1 Figures 2010 and changes excl. meiller Group (Pro forma consolidation); 2011: joint venture MEILLERGHP consolidated at equity 2 External plus internal sales ³ EBIT and EBITDA in relation to total revenue incl. meiller Group 18

19 PARCEL & LOGISTICS DIVISION: KEY INCOME STATEMENT INDICATORS EUR m H H Change % EUR m Q Q Revenue (external sales) Internal sales % 6.2% Revenue growth of 6.2% Total revenue % EBITDA % EBITDA margin 2 4.5% 5.2% 4.1% 5.2% Depreciation and amortisation % EBIT % EBIT margin of 2.4% EBIT margin 2 1.5% 2.4% 1.0% 2.5% 1 External plus internal sales 2 EBIT and EBITDA in relation to total revenue 19

20 BRANCH NETWORK DIVISION: KEY INCOME STATEMENT INDICATORS EUR m H H Change % EUR m Q Q Revenue (external sales) Internal sales % 1.2% Revenue drop of 6.2% Total revenue % EBITDA % EBITDA margin 2 5.3% 3.1% 10.0% 2.7% Depreciation and amortisation EBIT EBIT margin % % 0.6% 33.7% % % EBIT improvement due to structural change 1 External plus internal sales 2 EBIT and EBITDA in relation to total revenue 20

21 SOLID BALANCE SHEET STRUCTURE Assets (EUR m): cash and cash equivalents and securities of EUR 316m Equity and liabilities (EUR m): low level of financial liabilities at EUR 72m Cash and cash equivalents 1,715 1, Financial liabilities 1, , Securities Financial assets incl. interestbearing receivables Interestbearing provisions and liabilities Other Inventories, receivables and other assets Liabilities (incl. trade payables) Propety, plant and equipment and intangible assets Provisions Equity /12/ /06/ /12/ /06/

22 SIGNIFICANT IMPROVEMENT IN H CASH FLOW in EUR m +12.5m m 51.3 Changes in working capital CAPEX Other H H Operating cash flow before changes in working capital H H Free cash flow 22

23 1. Highlights and overview 2. Performance of the divisions 3. Group results 4. Outlook 23

24 OUTLOOK FOR 2011 Volumes Forecast of macrotrends remain valid: Addressed letter mail volume down 35% Good development of parcels and advertising mail Revenue Revenue 2011: continuation of halfyear development (+2.9% 1 ) Letter mail revenue: stable to slightly rising Profitable growth in Parcel & Logistics Costs & investments Efficient use of financial resources Priority is to improve the operating cost structure CAPEX of EUR 8090m to increase efficiency Earnings Continuity in earnings Sustainable EBITDA margin between 10% and 12% EBITDA margin 2011 at the upper end of the targeted range 1 Comparable basis: 2010 excl. meiller Group (pro forma consolidation); 2011: joint venture MEILLERGHP consolidated at equity 24

25 STRATEGIC MEASURES: NEXT STEPS 1. DEFENDING OF MARKET LEADERSHIP IN THE CORE BUSINESS Further growth of B2B parcel services in Austria Defend market position in the letter mail and B2C parcel segments 2. GROWING IN SELECTED MARKETS Increase profitability in the international Parcel & Logistics business: quality before quantity Expand mail services in South East and Eastern Europe 3. ENHANCING EFFICIENCY AND FLEXIBILITY OF THE COST STRUCTURE Exploit crossdivisional synergies/process cost optimisation New sorting/delivery system for advertising mail 350 branches with BAWAG P.S.K 4. CUSTOMER ORIENTATION AND INNOVATION Implement new online services Service drive based on innovative services (Post drop off box and Post pick up box) 25

26 CONTACT Austrian Post Investor Relations Postgasse 8, 1010 Vienna Website: Phone: Fax: Financial calendar 2011 November 17, 2011: Interim results Q Disclaimer This presentation contains forwardlooking 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. Forwardlooking 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 forwardlooking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forwardlooking statements. Austrian Post disclaims any obligation to update these forwardlooking statements to reflect future events or developments. Austrian Post Legal form: Public limited company under Austrian law Registered seat in the Municipality of Vienna Commercial register number FN d 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 a as whole, requires the express written permission of Austrian Post. 26

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