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

  • Negative economic environment can sustainably burden Letter Mail and Direct Mail volumes
  • Short-term volume decline especially in Direct Mail items (minus 50% during the period of store closings; subsequent gradual ramping up of advertising industry expected)
  • Positive impetus for private customer parcels and negative development of business parcels

Revenue

  • Austrian Post‘s objective is to keep revenue as stable as possible
  • Revenue decline in the high single-digit range is expected in high-margin Letter Mail and Direct Mail business (depending on duration and subsequent impacts of the crisis)
  • Parcel revenue growth of about 15% in 2020 anticipated
  • Relaunch of financial services via bank99 since 1 April 2020 (revenue 2019 included corresponding service fees from former banking partner of EUR 29.3m)

Investments/CAPEX

  • Investment programme maintained: Securing market leadership and basis for sustainably enhance efficiency
  • Investment level as in 2018 and 2019: maintenance CAPEX of about EUR 70m and growth CAPEX of over EUR 50m along with potential property purchases

Earnings

  • Detailed earnings forecast is still unpredictable. Decline in earnings in 2020 depends on macroeconomic development and the resulting Letter Mail, Direct Mail and Parcel volumes as well as the ramp-up of financial services during the course of the year
  • Targeted 2021 earnings improvement in all divisions again

Dividends

  • Proposal to the Annual General Meeting on 17 June 2020 to approve a dividend of EUR 2.08 per share
  • Attractive dividend policy will continue: objective of distributing at least 75% of the Group’s net profit