Investor Presentation
Highlights of First Half 2006 Successful IPO Positive market developments in all three divisions Favourable Group results in First Half 2006 2
Successful IPO Decision for an IPO in January 2006 Bookrunners: Goldman Sachs, Erste Bank, RCB; sales also through BAWAG P.S.K. 15 30 May: roadshow (12 days, 12 cities) Sale of 49% of 70 million shares Price range EUR 17 EUR 19 Issue price EUR 19 31 May: listing on Vienna Stock Exchange Exchange s biggest issue in 2006, fourth largest issue in Austria ever 3
12-day roadshow London Amsterdam Rotterdam The Hague New York Boston Paris Zurich Frankfurt Munich Milan Vienna Linz Graz Innsbruck 4 events in Vienna, Linz, Graz and Innsbruck for some 3,500 retail investors 45,000 retail investors (incl. 13,400 employees) 70 individual meetings in 12 cities, contact with more than 200 institutional investors Success rate: 70% orders from direct meetings 4
The third listed postal enterprise in Europe Strong demand: eight times subscribed Total of 34.3 million shares allotted Allocation: 1/3 Austria, 2/3 international Balanced shareholder structure 51% of employees became shareholders Germany USA Europe and other countries 5% 10% ÖIAG (Österreichische Industrieholding AG) United Kingdom 8% 9% 51% Private and Institutional Investors, Austria 17% 5
Austrian Post: share price performance EUR 25 24 Post (issue price: EUR 19) ATX (relative to Post) DJ Euro Stoxx Transportation (relative to Post) 23 +21.8% 22 21 20 19 18 0.7% 3.0% 17 16 15 30/05 04/06 09/06 14/06 19/06 24/06 29/06 04/07 09/07 14/07 19/07 24/07 29/07 03/08 08/08 6
Market capitalisation of Austria s top 25 companies BA-CA 14.8 OMV Erste Raiffeisen Telekom Austria Verbund 5.7 14.4 13.9 9.6 8.8 Wiener Städtische 4.8 Voestalpine 4.6 EVN 3.3 UNIQA 2.9 Wienerberger 2.8 Böhler-Uddeholm 2.1 Andritz Austrian Post Mayr-Melnhof Flughafen Wien 1.3 1.6 1.7 1.8 Austrian Post enjoys excellent standing among ATX shares Agrana 1.1 BWIN 1.0 Zumtobel RHI Palfinger 0.7 0.7 0.7 Constantia Packaging BWT Intercell Schoeller-Bleckmann 0.6 0.5 0.5 0.5 As at 31 July 2006 - Mrd. EUR 1 Mrd. 1 bn EUR 2 Mrd. 2 bn EUR 3 Mrd. 3 bn EUR 4 Mrd. 4 bn EUR 5 Mrd. 5 bn EUR 66 Mrd. bn 7
Highlights of First Half 2006 Successful IPO Positive market developments in all three divisions Favourable Group results in First Half 2006 8
Highlights of First Half 2006 Revenue increase in all divisions Mail Division: gains in unaddressed advertising (direct mail) support continuing growth in revenues and stable earnings Parcel & Logistics Division: improved volumes and earnings both in Austria and internationally (driven by internet-based mail order business) Branch Network Division: increased sales of retail products; BAWAG P.S.K. had no significant effects on our business Acquisition of Kolos (SK) 1 for Infomail (Direct Mail) and Wiener Bezirkszeitung in Media Post Business Area Liquidity further improved by steady cash flow 1 Kolos not consolidated at present 9
Three strong businesses Mail Parcel & Logistics Branch Network Letter Direct mail Newspapers and periodicals Parcels Express deliveries Postal services Financial and insurance products Retail products Revenues Revenuesup up 1.9% 1.9% EBIT: EBIT: EUR EUR 131.3m 131.3m Revenues Revenuesup up 9.7% 9.7% EBIT: EBIT: EUR EUR 9.5m 9.5m Revenues Revenuesup up 3.7% 3.7% EBIT: EBIT: EUR EUR 11.0m 11.0m NB: External sales of divisions 10
Three strong businesses Mail Division: highlights of First Half 2006 Letter volumes still stable No noticeable effects so far of liberalisation as per 1 January 2006 (50 100g) Substantial increase in unaddressed advertising (direct mail) in first half year Acquisition of Kolos (Slovakia) in unaddressed advertising segment Media Post business expanded (purchase of Wiener Bezirkszeitung regional newspaper) Issue of cluster box units currently unresolved; no impact on revenues in first half Results of EU liberalisation studies expected in autumn 2006 11
Three strong businesses Parcel & Logistics Division: highlights of First Half 2006 Parcel volumes in Austria rising (X2C) International parcel volumes (from and to Austria) boosted by internet-based mail order industry Entry into parcels market for business customers in Austria (B2B) produces first sales Successful launch of cooperation with German parcel carrier trans-o-flex Optimisation of parcel logistics for B2B operations 12
Three strong businesses Branch Network Division: highlights of First Half 2006 Close-to-customer distribution network: 1,334 company-owned branches and 610 partner outlets Excellent performance in retail business particularly in telecoms area (mobile phones) Financial services business stable; positive business performance once the uncertainties regarding BAWAG P.S.K. had been clarified. Change of ownership of BAWAG P.S.K. an opportunity own retail network an asset 13
We follow our strategy consistently Defend & Expand Defence of market leadership Continued profitable expansion Excellent value for money One-stop shopping Economies of scale Optimised network Expansion along the value chain Entry into B2B parcels market Occupying attractive niche markets Expansion in Eastern Europe 14
Highlights of First Half 2006 Successful IPO Positive market developments in all three divisions Favourable Group results in First Half 2006 15
Increased revenue and earnings Revenue (EUR m) EBITDA (EUR m) EBIT (EUR m) +3.0% +14.5% +17.9% 836.0 861.4 103.0 117.9 56.2 66.3 H1 2005 H1 2006 H1 2005 H1 2006 H1 2005 H1 2006 16
Business performance H1 2006 Key income statement figures H1 2005 2006 EUR m H1 2005 H1 2006 Change in % Q2 2005 Q2 2006 Revenue 836.0 861.4 +3.0% 416.1 417.1 Raw materials, consumables and services used -116.3-126.6 +8.8% -57.3-60.5 Staff costs -535.8-539.4 +0.7% -268.6-268.7 Other operating expenses -105.4-106.8 +1.4% -53.8-55.3 EBITDA (earnings before interest, tax, depreciation and amortisation) 103.0 117.9 +14.5% 48.3 48.5 Depreciation and amortisation -46.8-51.6 +10.3% -24.1-31.2 EBIT (earnings before interest and tax) 56.2 66.3 +17.9% 24.2 17.3 EBIT margin 6.7% 7.7% - 5.8% 4.2% EBT (earnings before tax) 54.7 67.3 +23.2% 23.6 18.4 Income tax expense -12.9-15.7 +22.3% -6.5-3.7 Profit for the period 51.6 51.6-0.1% 17.1 14.6 Employees (full-time equivalent, average) 25,159 24,294-3.4% 17
Key figures by division EUR m H1 2005 H1 2006 Change 2005 Revenue 836.0 861.4 +3.0% 1,701.6 Mail 638.7 650.5 +1.9% 1,290.8 Parcel & Logistics 101.5 111.4 +9.7% 211.8 Branch Network 93.3 96.8 +3.7% 193.8 Other/Consolidation 2.4 2.7 +9.5% 5.2 EBIT 56.2 66.3 +17.9% 103.0 Mail 131.4 131.3-0.1% 268.9 Parcel & Logistics 2.0 9.5 +388.0% 10.4 Branch Network 3.3 11.0 +234.8% 8.7 Other/Consolidation -80.4-85.5-6.0% -184.9 18
Mail Division: key figures H1 2006 External sales EBIT EUR m H1 2005 H1 2006 Change +1.9% -0.1% 638.7 650.5 External Sales - Letter Mail - Infomail 638.7 389.6 186.2 650.5 386.0 200.5 + 1.9% -0.9% +7.7% - Media Post 62.9 64.1 +1.8% 131.4 131.3 Total revenue 1 671.2 684.4 +2.0% EBIT 131.4 131.3-0.1% EBIT margin 2 19.6% 19.2% - H1 2005 H1 2006 H1 2005 H1 2006 Employees (full-time equivalent, average) 15,428 15,132-1.9% Increased revenues despite lower letter mail volumes Infomail (addressed and unaddressed direct mail) contributes a very strong first half (up 7.7%) Media Post progresses steadily with a slight increase in revenues (up 1.8%) EBIT on the level of First Half 2005 1 External and internal sales 2 EBIT as percentage of total revenue 19
Parcel & Logistics Division: key figures H1 2006 External sales EBIT EUR m H1 2005 H1 2006 Change +9.7% +388.0% External sales 101.5 111.4 +9.7% Total revenue 1 123.3 135.4 +9.9% 101.5 111.4 9.5 EBIT 2.0 9.5 +388.0% EBIT margin 2 1.6% 7.0% - 2.0 H1 2005 H1 2006 H1 2005 H1 2006 Employees (full-time equivalent, average) 2,499 2,280-8.8% Revenues up by 9.7% to EUR 111.4m Volume increases in B2C segment and as a result of entering B2B market (internet mail order business as growth-driver) EBIT grows to EUR 9.5m 1 External and internal sales 2 EBIT as percentage of total revenue 20
Branch Network Division: key figures H1 2006 External sales EBIT EUR m H1 2005 H1 2006 Change +3.7% +234.8% External sales 93.3 96.8 +3.7% Total revenue 1 198.2 203.4 +2.6% 93.3 96.8 11.0 EBIT 3.3 11.0 +234.8% 3.3 H1 2005 H1 2006 H1 2005 H1 2006 EBIT margin 2 Employees (full-time equivalent, average) 1.7% 5,479 5.4% 5,218-4.8% Slightly increase in revenues Strong development in retail products (telecoms) Financial services unchanged compared to first half 2005 EBIT of EUR 11.0m consolidates turnaround 1 External and internal sales 2 EBIT as percentage of total revenue 21
Cash flow First Half 2005 2006 EUR m H1 2005 H1 2006 Operating cash flow Operating cash flow before changes in working capital +/- Changes in working capital 130.7 30.6 141.7-13.5 +8.4% 141.7 130.7 EUR 22m liability for real estate acquisition repaid = Cash flow from operating activities +/- Cash flow from investing activities 161.4-24.3 128.2-6.2 EUR 40m dividend payment = Free cash flow +/- Cash flow from financing activities = Net increase in cash and cash equivalents 137.1-39.1 98.0 122.0-38.8 83.2 H1 2005 H1 2006 EUR 83.2m increase in cash and cash equivalents 22
Liquidity further improved Financial investments in securities Cash and cash equivalents 220.9 200.1 257.7 140.4 148.3 174.5 30 Jun 05 31 Dec 05 30 Jun 06 30 Jun 05 31 Dec 05 30 Jun 06 Interest-bearing assets of EUR 460m (up 58% compared to H1 2005) 1 EUR m 23
Financial key figures at a glance EUR m H1 2005 H1 2006 Change Income statement Revenue EBITDA EBIT 836.0 103.0 56.2 861.4 117.9 66.3 +3.0% +14.5% +17.9% Cash flow statement Operating cash flow Free cash flow 130.7 137.1 141.7 122.0 +8.4% -11.0% EUR m 31 Dec 2005 30 Jun 2006 Change Net cash position (net debt) 28.0 32.1 +14.6% Balance sheet Capital employed Equity 694.3 762.1 701.4 773.2 +1.0% +1.5% Total assets 1,563.0 1,566.7 +0.2% Equity ratio 48.4% 49.4% 24
Positive outlook confirmed 2006 Revenue forecast: stable to slightly increase EBIT increase of 10 15% year on year 2007 and beyond Dividend of EUR 70m in Q2 2007 (subject to approval by Annual General Meeting) Payout ratio of 70% assuming continuing satisfactory business development and unchanged financial position Medium-term goal: stabilisation of EBIT margin at 7 to 8% 1 1 Based on present business mix 25
Contact / disclaimer Österreichische Post AG Investor Relations Postgasse 8 1010 Vienna, Austria Investor Relations website: www.post.at/ir E-mail: investor@post.at Phone +43 (1) 51551 30401 Fax +43 (1) 51551 30409 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