Strategy

The following four strategies will lead the way for Austrian Post's future development: 

 1. Defending market leadership in the core business
Austrian Post is the undisputed market leader in Austria’s letter mail segment as well as in the transport and delivery of parcels, particularly to private recipients. In 2011, Austrian Post succeeded ion maintaining its market position even after the complete liberalisation of the Austrian postal market, generating a revenue increase of 4.4%. The Group aims to defend its strong position in the future, especially in the letter mail market, which has been fully liberalised in the meantime. Moreover, revenue from private and business customers could also be further expanded in the Austrian parcels segment.

2. Growing in selected markets
In addition to defending its core business, Austrian Post will pursue growth in selected segments. The priority will be on its parcel and logistics business, focusing on further expanding Austrian Post’s position in the combined freight, temperature-controlled logistics and B2B/B2C parcels segments in Austria and Germany as well as in South East and Eastern Europe. Moreover, Austrian Post continuously expands its service offering for letter mail customers.

3. Enhancing efficiency and increasing flexibility of the cost structure
In order to consolidate its clear cost leadership in Austria following the comprehensive liberalisation of the letter mail market, Austrian Post plans a further significant efficiency enhancement in respect to its logistics and delivery processes. Key measures include the ongoing improvement of the distribution network, the further expansion of the branch network while integrating more entrepreneurial models, the development of new business models and targeted cost reductions in respect to administration costs and operating expenses.

4. Strengthening customer orientation and innovation
Austrian Post will only be successful in the long term if it can adapt its service offering to fulfil the changing needs of customers. For this reason, the company will not only focus on reducing complexity but on developing innovation throughout its service offerings and driving forward a broad-based service campaign. This includes an online initiative designed to increase the convenience of conventional postal services and offer new digital products in the field of electronic postal services

Austrian Post has defined ambitious medium-term business targets:

Revenue: Medium-term growth of 1-2% annually

The 3-5% p.a. decline in the volume of addressed letter mail items is expected to be offset since we will be capitalising on existing potential for growth, especially in the parcel business. In addition, new services, innovative approaches to customer service and customer loyalty as well as inhanced product differentiation will further drive our growth.

High profitability: Sustainable EBITDA margin of 10-12%

Austrian Post will strive to further increase efficiency in all its operational processes, in order to secure long-term earnings and cash flow.

Dividends: Continuation of attractive dividend policy

Austrian Post intends to continue its current dividend policy i.e. a dividend payout of at least 75 percent of the Group net profit and a sustainable dividend should reflect the business development.