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Annual Report Magazine FY 2015

18 AUSTRIAN POST ANNUAL REPORT 2015 COMPANY DIGITALISATION E-COMMERCE LOGISTICS ECOLOGICALISATION EMPLOYEES FACTS & FIGURES 3–5% annually in addressed letter mail volumes. The decrease of 4% in Austria in 2015 is in the middle of the predicted range. On balance, letter mail volumes in Austria fell by an average of 3% annually over the past five years, whereas postal providers in the Netherlands and Great Britain were faced with a drop of 8.0% and 4.3% p.a. re­ spectively. Austrian Post strives to maintain the use of physical letters at a high level on the basis of its outstanding quality. For example, it scores points thanks to its high delivery quality. 95.9% of all letters posted with Austrian Post already reached the intended recipients within Austria on the next working day. Another advantage of Austrian Post is its moderate price policy in international compar­ ison. It is true that the company raised rates for standard domestic letters from 62 to 68 cents in March 2015 with the approval of the Austrian regulatory authorities. Nevertheless, in spite of this slight price hike, Austrian Post fares very favourably compared to other European postal companies, whose postal rates for such letter mail range between the equivalent of EUR 0.35 in Romania to EUR 1.88 in Denmark. Austrian Post’s moderate price level combined with its high delivery quality shows that Austrian Post has effectively done its homework with respect to process optimisation. Parcel and direct mail growth The trend towards digitalisation has had a posi­ tive impact on parcel revenue in recent years. The entire e-commerce segment is expected to continue on its growth path in the medium and long term. The retail food sector is increasingly proving to be an exciting future-oriented topic (also refer to page 48) complementing the tradi­ tional mail order business. E-commerce is fore­ cast to show a growth rate of about 10% p.a. in the period 2015–2018. In particular, the un­ der-30 age group likes to shop online, using their smart phones more than ever before as a channel for their consumption. All this holds substantial potential for Austrian Post. According to a study conducted by Kreutzer Fi­ scher & Partner, a total of 69m parcels were sent to private customers in Austria in 2015 (B2C and C2C), comprising an impressive rise of 7.2% compared to the previous year. There is still con­ siderable room for expansion. A glance at the sit­ uation in Europe shows that Austria still ranks in the low mid-range with respect to per capita par­ cel volumes. The above-mentioned study in 2015 concluded that the B2B parcel business devel­ oped less dynamically, expanding by only 1.2%. Once again, the sluggish development in this segment is due to the generally tense economic situation. 76% of all parcels to private customers in Austria in 2015 were delivered by Austrian Post, which has a significant competitive advantage vis-à-vis other market participants due to its high quality and nationwide service. However, the competi­ tion never sleeps if a business area promises at­ tractive growth rates. In particular, the recent business activities of Deutsche Post have intensi­ fied competition on the Austrian market. Business with direct mail also showed growth over the past year. Austrian Post has been able to excellently position itself in this market segment in recent years by implementing sales campaigns and introducing attractive new products (also re­ fer to page 30). Physical advertising tools, especially unad­ dressed direct mail items or advertising circulars known in Austria as “Postwurfsendungen”, com­ prise an indispensable component of a compa­ Source: Kepler Cheuvreux POSTAL RATES FOR STANDARD LETTER 2016 EUR DELIVERY QUALITY LETTER MAIL 2013 NEXT-DAY DELIVERY IN % 1.88 0.91 0.82 0.79 0.80 0.73 0.68 0.70 DENMARK SWITZERLAND UK FRANCE BELGIUM NETHERLANDS GERMANY AUSTRIA Source: Company data NETHERLANDS GERMANY AUSTRIA UK PORTUGAL BELGIUM 96.5 96 95 93 94 92

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