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

  • Assumption of a slow and steady economic recovery during the year
  • Volatile and reduced volume forecasts for Letter Mail and Direct Mail
  • Further enhanced positive development in private customer parcels

Revenue

  • Largely stable revenue forecast for 2020 (benchmark revenue 2019: EUR 2,022m)
    • Mail Division with decline in the upper single-digit range
    • Parcel & Logistics Division with revenue growth of about 20%
    • Retail & Bank Division below prior-year level due to new start of bank99
  • Expected revenue growth after full consolidation of the Turkish company Aras Kargo

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 of over EUR 50m, as well as the possibility of acquiring new properties

Earnings

  • EBIT of the logistics business (excl. Retail & Bank Division) of at least EUR 160m
  • Group EBIT 2020 (benchmark EBIT 2019: EUR 201m) with positive effect from full consolidation of Aras Kargo and negative impact from the start-up of bank99
  • Earnings improvement targeted in all divisions in 2021