Investor story

The investment story of Austrian Post

What motivates investors to purchase Österreichische Post shares?

Solid Business Model

  • Stable revenue development with leading market position in Austria
  • Sustainable profitability due to an efficient cost structure 

Attractive Dividend Policy

  • Further development of dividends based on profitability and generated cash flow

  • Annual dividend distribution of at least 75% of the Group net profit

Strong Balance Sheet and Solid Cash Flow

  • Conservative balance sheet structure – high level of cash and cash equivalents

  • Solid cash flow allows for future-oriented investments

Consistency and Reliability

  • Prudent and realistic guidance with clearly-defined objectives

  • Clear commitment to achieve communicated targets
 

4 strategic cornerstones:

1. Defending Market Leadership in the Core Business

  • Revenue of the mail and parcel businesses
  • EBIT of the mail and parcel businesses

2. Profitable Growth in Selected Markets

  • Revenue of Group companies
  • EBIT of Group companies

3. Enhancing Efficiency and Flexibilisation of the Cost Structure

  • Development of cost items
  • Attrition rate in operating or administrative areas

4. Customer Orientation and Innovation

  • Customer satisfaction and delivery speed
  • Ramp-up curve for self-service solutions


3 economic goals:

  • Solid revenue development
  • Sustainably high profitability
  • Continuation of the attractive dividend policy

Market environment:

  • Basic assumption of a slow but steady economic recovery during the year
  • Volume development in the Letter Mail, Direct Mail and Parcel segments characterised by higher volatility and reduced visibility
  • Different possible scenarios for development of the pandemic result in broader risk range

Revenue:

  • Revenue growth 2020 of >3% (incl. subsidiary Aras Kargo)
    • Decline in Mail Division in the upper single digit range
    • Strong growth in Parcel & Logistics Division (>30%)
    • Retail & Bank Division below the prior-year level due to launch of bank99

Investments/CAPEX:

  • Investment programme will be continued: securing of market leadership and basis for sustainable efficiency increase
  • Investments at the level of 2018 and 2019: maintenance CAPEX of about EUR 70m and growth CAPEX in excess of EUR 50m, as well as the possibility of acquiring new properties in the amount of about EUR 20m expected

Earnings:

  • Current development confirms outlook for 2020:
    • EBIT of the logistics business (excl. Retail & Bank Division) of around EUR 170m after full consolidation of Aras Kargo and under the condition of no lockdown in the Austrian retail sector
    • Group EBIT 2020 impacted by negative effect from launch of bank99 (Basis: EBIT 2019 of EUR 201m)
    • Uncertainty regarding the development of pandemic/lockdown measures remains
  • Earnings in 2021: Targeted EBIT growth in all divisions