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

  • Expected annual dividend payout of at least 75% of the 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 invetsments

Consistency and Reliability

  • Prudent and realistic guidance with clearly-defined objectives

  • Clear commitment to achieve communcated targets
 

4 strategic levers:

1. Defending our leading market position in our core business
We continue to rely on our proven strengths that made us number 1 in the domestic letter and parcel segments, which is our core business.
 
2. Profitable growth in selected markets
We explore growth markets such as the international parcel business, transnational shipping solutions and innovative online services.
 
3. Increasing efficiency and optimising our cost structure
We improve our profitability and adjust our processes to increasingly complex market conditions.
 
4. Customer orientation and innovation
We introduce innovations to make our products and services even more convenient for our clients. 

 
3 economic goals:

  • Solid revenue development
  • High profitability now and in the future
  • Continuing our attractive dividend policy

Market environment

  • 5% annual decline in addressed letter mail volumes expected, especially against the back-drop of new e-Government solutions
  • Direct mail volumes subject to economic cycle and uncertainties
  • The national and international parcel market continues to exhibit volume growth; outstanding market position of Austrian Post in the private customer parcel market due to delivery speed and service quality

Revenue

  • Stable to slightly higher revenue targeted in 2020
  • Innovations and portfolio adjustments in the mail business as at 1 April 2020
  • Increase in annual volumes to more than 140m parcels forecasted: increase through organic growth and partnership with Deutsche Post DHL Group against the backdrop of increasing own delivery by a large customer in Eastern Austria
  • New financial services to be offered through all approx. 1,800 postal service points of Austrian Post and online starting in Q2 2020

Investments/CAPEX

  • Realisation of a comprehensive investment programme to safeguard the company‘s market position
  • Maintenance CAPEX (basic investments) of about EUR 70m
  • Growth CAPEX (expansion investments) in excess of EUR 50m, purchase of property and real estate also possible
  • The Parcel Logistics Centre Styria (Kalsdorf) to be put into operation in the second half of 2020

Earnings

  • Operating EBIT 2019 was slightly above the EUR 211m of 2018, the target for 2019 is stability in operating earnings (subject to a stable economic environment against the backdrop of COVID-19); in addition, altogether start-up costs to develop the new financial services business of at least EUR 40m for the years 2020 and 2021, positive earnings contributions from the financial services business planned as at 2023

Dividends

  • Proposal to the Annual General Meeting on 16 April 2020 to distribute a dividend of EUR 2.08 per share
  • Ongoing goal to distribute at least 75% of the Group net profit