marrived! t r u s t r e a f f i r m e d t r u s t r e a f f i r m e d t r u s t r e a f f i r m e d t r u s t r e a f f i r m e d t r u s t r e a f f i r m e d t r u s t r e a f f i r m e d t r u s t r e a f f i r m e d t r u s t r e a f f i r m e d m a g a z i n e 2016 a g a z i n e 2016
s t n e t n o c 02 02 e d i t o r i a l e d i t o r i a l 04 04 k e y t o p i c : k e y t o p i c : t r u s t t r u s t 29 29 s o l u t i o n s s o l u t i o n s & s e r v i c e s & s e r v i c e s 10 10 t h e p o w e r t h e p o w e r 16 16 s e c u r i n g y o u r s e c u r i n g y o u r o f t h e b r a n d o f t h e b r a n d t r u s t t r u s t 22 22 a n i n t e r v i e w w i t h t h e a n i n t e r v i e w w i t h t h e m a n a g e m e n t b o a r d m a n a g e m e n t b o a r d 30 30 a h u m a n b e i n g a h u m a n b e i n g r e m a i n s a n a l o g u e r e m a i n s a n a l o g u e 37 37 t h e m i l e o f t r u s t t h e m i l e o f t r u s t 44 44 w e l l r e c e i v e d w e l l r e c e i v e d 50 50 i n n o v a t i o n s i n n o v a t i o n s o n l i n e s o l u t i o n s o n l i n e s o l u t i o n s k e e p f l o w i n g k e e p f l o w i n g 53 53 54 54 t h e t r a n s f o r m a t i o n t h e t r a n s f o r m a t i o n 56 56 t e n y e a r s o n t h e t e n y e a r s o n t h e s h a r e h o l d e r s s h a r e h o l d e r s w i l l c o n t i n u e w i l l c o n t i n u e s t o c k m a r k e t s t o c k m a r k e t 59 59 f o u r k e y e l e m e n t s , f o u r k e y e l e m e n t s , o n e s t r a t e g y o n e s t r a t e g y 61 61 62 62 c o m m i t t e d b e y o n d c o m m i t t e d b e y o n d 66 66 e n v i r o n m e n t a l e n v i r o n m e n t a l r e s p o n s i b i l i t y r e s p o n s i b i l i t y t h e c o m p a n y ’ s t h e c o m p a n y ’ s p r o t e c t i o n w h e n p r o t e c t i o n w h e n b o u n d a r i e s b o u n d a r i e s o n t h e m o v e o n t h e m o v e 72 72 e n s u r i n g e n s u r i n g 77 77 a g o o d f e e l i n g a g o o d f e e l i n g f u t u r e s u c c e s s f u t u r e s u c c e s s a t w o r k a t w o r k 84 84 m a i l & b r a n c h m a i l & b r a n c h n e t w o r k n e t w o r k 86 86 n u m b e r o n e n u m b e r o n e i n a u s t r i a i n a u s t r i a 71 71 s ta f f s ta f f 81 81 82 82 a u s t r i a n p o s t a u s t r i a n p o s t fa c t s & f i g u r e s fa c t s & f i g u r e s a t a g l a n c e a t a g l a n c e 85 85 p a r c e l & l o g i s t i c s p a r c e l & l o g i s t i c s 88 88 c o n t a c t a n d c o n t a c t a n d i m p r i n t i m p r i n t
k e y t o p i c : t r u s t 0 2 the trust of our customers is our motivation. 2016: trust reaffirmed — successful delivery of 790m letters, 4.6bn direct mail items, 81m parcels in austria — 100 % co₂ neutral delivery throughout austria — services expanded, price/performance ratio maintained — delivery times adjusted to customer needs and expanded accordingly — eur 106m invested in logistics and customer solutions 1 6
editorial s t n e t n o c t r u — editorial g e o r g p ö l z l g e o r g p ö l z l
k e y t o p i c : t r u s t t s dear readers, austrian post is moving in the right direction. h e i gures and business development show that we have made the right decisions, and we are performing in line with expectations thanks to the measures and projects being implemented. we achieved good results again in 2016 in spite of the dii cult market environment. h is year we once again chose a special theme for our annual report. h e focus of our publica tion is our way of sending you a signal that we are carefully keeping an eye on the environment in which we operate, anticipating developments and drawing the right conclusions, keeping the wellbeing of our customers in mind. sot qualities such as experience, service orientation as well as the personal proximity to customers will increasingly make a dif erence in the future. and in this respect, we believe we have a leading edge in many areas, which we want not only to maintain but also further expand upon. who trusts expects a promise to be fulfilled one of these sot factors where we feel to have a competitive advantage is the trust you place in us – as a customer, shareholder, employee or business partner. we are very grateful for this. however, we realise that we have to reai rm and deserve this trust time and again. and we gladly do so! but this requires us to continually develop ourselves, to know our own strengths and to preserve and enhance quality, even when conditions change. we can only keep our promise of performance if we have the ambition to improve. in this way, we reliably ensure an optimal performance and can count upon the continuing trust of our stakeholders. you will i nd out more about what trust means on the following pages. h e articles deal with issues which we strongly identify with here at austrian post. safeguarding our strong corporate brand, reliability for our customers and an uptodate service of ering are important bench marks which guide our corporate behaviour and decisions. i wish you an enjoyable and informative read. sincerely yours, georg pölzl chief executive ofi cer and chairman of the management board
key topic: trust s t n e t n o c why does it feel so good to let go? because it is a sign of conﬁ dence and one gets more in return. there is hardly any other word we use as frequently as “trust”. and right so, because it is the fundamental basis of human interaction. ►► page 22
k e y t o p i c : t r u s t
s t n e t n o c what makes strong brands so valuable? they bundle a performance promise and service commitment underpinned by experience. this shortens many tasks and distances. ►► page 10
k e y t o p i c : t r u s t
s t n e t n o c are things any better today than they used to be? so much has become more comfortable and convenient for us in modern society. however, in return we frequently have to relinquish control, which is now increasingly in the hands of others. ►► page 16
k e y t o p i c : t r u s t
the power of the brand s t n e t n o c 10 the power of the brand a brand provides an identity. the customer identifies a producer or service company by means of its logo or trademark. he associates this branding with a promise of quality, and knows what he buys. the corporate brand austrian post is also associated with certain services. it unfolds its vitality in its contacts to customers. every employee is an ambassador for austrian post and acts as a voice for its commitment to quality each and every day. in this case regularity serves as a strong link.
11 11 k e y t o p i c : t r u s t 1. trusted perhaps a few readers will recall the following situation as one of the highlights of their childhood: the mail carrier rang the doorbell, because he had more to deliver than just letters – namely a parcel which did not i t in the letterbox. twice a year at holiday time, grandma sent out parcels full of delicious pastries to all her grandchildren spread out across the country. as it is tradi- tional in austria, there were sweet lamb cakes for easter and a variety of christmas cookies in advent. thanks to the postal service, grandma was able to send presents to her dozen descendants in the nation. whereas other companies i rst have to build up an image, the one en- joyed by austrian post has evolved and l ourished because of tradition. austrian post comes to mind when sending things and written materials, in the same way we associate italy with good shoes or search engines with google. austrian post has become an indispensable feature of everyday life. each and every day, some 9,100 mail carriers (popularly termed “postler” in german) fan out across austria to deliver what needs to be delivered. this is something one can rely on. they bring the mail items not just anywhere but directly to the customers. they know each other and chat a little, and communication works. there is hardly any other professional group which matches this frequency and regularity of contact. not even the bus driver on the way to work in the morning is always the same person. in contrast, the mail carrier has his designated delivery area, in which he knows every letterbox and every doorstep, and takes the pre-determined route
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 12 short history of “post” – from a mere word to an integral part of the vocabulary: — 16th century the word “post” is derived from the italian word “posta” meaning “speciﬁed location”, and originally denoted the changing stations where mounted couriers changed horses. — a 500-year monopoly thanks to the long tradition of a mail monopoly, the term “post” emerged as a general word in the german language. — nowadays today “post” is just as much a company or building name as it is an item to be shipped or a message. in the age of electronic data processing, the term has also been adopted to mean “electronic mail.” — vocabulary according to duden, the entire vocabulary of the german language includes between 300,000 and 500,000 words. the noun “post” ranks among the 2,000 most frequently used german words. every day. trust and intimacy arise from this ongoing contact. we gladly open our doors to the mail carrier, if necessary in our bathrobes. for this reason, it goes without saying that the “postler” may, at times, go above and beyond the call of duty to come to the aid of cus- tomers. this does not always have to entail saving someone’s life, as gottfried schatzl did in the district of branau in september 2016. at that time, he kept a pensioner who had fallen down from freezing to death. he discovered the 83-year-old wom- an in a hardly visible place, where she had been lying unnoticed in a ditch for 18 hours. however, taking a closer look at things and lending as- sistance are quite natural for schatzl and his fellow employees. during the day they are often the only ones who come into contact with people who live off the beaten track or who live alone. on the basis of such close proxim- ity to customers, every mail carrier comprises the crucial link which a brand needs. the mail carrier is, so to speak, the glue. he maintains contact to customers in the course of his daily visits. he contributes his personal touch to the brand, and is the key to a broader-based connectivity. his daily work serves to foster brand presence and awareness. in addition, thanks to the quality of his service, he makes a signiicant contribution to a positive brand image. 2. useful in addition to the glue, a brand re- quires a driving force and a recurring element. only in this way it does become a strong personality. from the very beginning, customer needs have comprised the impetus beyond austrian post’s operations. austrian
13 k e y t o p i c : t r u s t post evolved out of the longing to communicate and convey messages to people who are not in close geographical proximity. since then the ways and means have changed con- siderably, but the underlying thought remains the same. austrian post offers a useful instrument to fulil people’s need to exchange goods and words. over the centuries austrian post has developed, maintained and upgraded an infrastructure serving as the basis for its unique and comprehensive service offering. people can deposit their mail items in about 15,300 letter boxes. thanks to more than 330 self-service zones, parcels can be dropped off around the clock throughout austria. six mail sorting facilities and seven parcel sorting sites assign up to 1,2 million letters and up to 42,000 parcels each hour to their intended destinations. in this way, the mail items can be delivered to recipi- ents within the shortest possible time.
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 14 h a l e ö z d a m a r e m p l o y e e , b r a n c h 1 1 1 0 v i e n n a 3. adaptive the bottom-line value of a product or service ultimately depends on its ability to satisfy people’s needs, which change in the course of time, as experience has shown. a brand has to be adaptive if it wants to be just as attractive tomorrow as it is today. but how much change is really good for a brand? a strong brand can transform itself and yet still continue to evoke a sense of familiarity in the hearts and minds of its customers. even if the speciic services change, the image remains credible. a company which does not want to lag behind is well advised to closely observe the values, attitudes and habits of its custom- ers. experience has proven that successful innovations are rarely revolutionary inventions. continuous optimisation frequently turns out to be precisely the proitable change enabling the company to more effec- tively meet customer demands. austrian post is very experienced when it comes to logistics processes. it is necessary to consistently apply this know-how to new wishes arising on the market. this is not only a longstanding tradition but the recurring element in the brand frame- work. austrian post offers the reliable solution, which now encom- passes extended delivery times, postal service and drop off points throughout austria and expanded services. this is a brand promise which offers certainty and security, which are very much in demand. people are searching for points of reference as the basis for making decisions, especially in times of j o s e f f u c h s t e a m l e a d e r , 2 8 4 2 t h o m a s b e r g
15 k e y t o p i c : t r u s t k a r i n r a m e d e r m a i l c a r r i e r , 4 7 1 0 g r i e s k i r c h e n increasing complexity. a well-estab- lished brand can provide orientation. let’s return to grandma’s holiday surprise mentioned at the begin- ning. in the course of our lives, we might become senders of mail items instead of only recipients. when chil- dren become independent, thought- ful gifts are shipped to them by mail on various occasions. in this way we maintain contact with them, even beyond our home region. whatever we give and receive is something tangible which is engraved in our memories. austrian post takes care of the delivery. the service offering may vary due to new requirements, but the brand remains the same. this is a brand we encounter on a daily basis, which accompanies us our whole lives. pat r i c k s c h w e i z e r t e a m l e a d e r , 9 0 3 0 k l a g e n f u r t
securing your trust a u s t r i a n p o s t m a g a z i n e 2 0 1 6 16
17 k e y t o p i c : t r u s t your trust customers highly value austrian post as a reliable partner which securely brings their mail items to the intended recipients – at any time, to any place, under any circumstances. making sure that that this happens requires far more than perfectly attuned processes. this is because the power of chance along with the given circumstances and the human factor all comprise variables with a considerable potential to influence the course of events. the issue of security is an integral part of all the company’s business activities, enabling austrian post to justify the trust of its customers.
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 18 “the world has become more convenient for customers and more complex for austrian post.” globalisation and digital transformation have made the world much more convenient for customers in recent years. consumers have a wider selection than ever before when it comes to buying products or communicating. austrian post’s business activities have taken this new situation into account. h e company’s operations based on a longstanding tradition have become quicker, more multifaceted and above all, more complex. with respect to security, this demands maximum ei ciency and performance from austrian post. h e instal lation and maintenance of secure it systems, ensuring secure processes and transparent, secure communication are three key issues which are ubiquitous in the compa ny’s daytoday business. “h e ef orts and expenditures involved in maintaining our security standards have risen signii cantly over the past ten years”, states austrian post ceo georg pölzl. “customers are increasingly ordering goods online from austria and from foreign sources. one side ef ect we have to contend with is the growth of at tempted fraud by criminals.” “the online world poses new challenges.” austrian post is particularly confronted with growing de mands with respect to its online activities. unauthorised individuals and criminals attempt to gain access to com puters via socalled phishing emails as a means of tap ping into data or installing malware. h ey repeatedly use the austrian post name. “h e online channel is very important in modernday communications and is a com pulsory part of daily life, both privately and in our profes sional work”, says sascha hönigsberger, an employee of the group security department. “for this reason, we go to great lengths to combat this improper use of the internet.” in addition to regular internal and external awareness raising, these ef orts involve a close cooperation with oth er institutions such as the police. for example, austrian post’s parcel operations dealt intensively with the issue of online order fraud in 2016. professional internet fraud sters want to proi t from the booming business of online shopping. swindlers particularly like to take advantage of orders allowing for payment using a giro transfer form at er the goods are received as well as orders based on illegally obtained credit card data. alert mail carriers and employees in the branch network repeatedly detect suspicious ordering behaviour, for example orders to nonexistent front door numbers or addresses where no body lives. when an austrian post employee notices such suspicious mail items, appropriate measures are taken to prevent presumptive online shopping fraud. h e addi tional time and ef ort and the commitment displayed by austrian post minimises the i nancial losses incurred by mailorder companies. h e underlying goal of austrian post has been to i nd ways to even more ef ectively support customers of mailorder companies in their ef orts to i ght against order fraud. accordingly, the company took part in the international “action week” initiated by europol to combat cyber fraud in online shopping. h ere were gratifying and tangible signs of success throughout austria during that week and in subsequent days due to the intensive cooperation with the police and mail order i rms. austrian post employees set their sights on 30 parcels in close consultation with the police. h e alleged perpetrators were arrested in four cas es. other conspicuous items provided leads for detectives. h e investigations are ongoing. more than anything else, the concerted ef orts during the action week served to raise awareness among cus tomers. austrian post already takes a very securitycen tric approach in its daily (parcel) shipping operations. “however, we need the support of customers”, explains heinz schiller, head of customer management at parcel logistics austria. “h e more they help out, the more suc cessful we can be in preventing order fraud. if they no tice suspicious mail items, they should contact our ser vice centre or report it to our online post oi ce box at firstname.lastname@example.org”.
19 k e y t o p i c : t r u s t h e electronic mail solution of ered by austrian post is called the eletter and can be used as a secure alterna tive to conventional forms of communication (details can be found on page 46). data protection and data security comprise the top priorities in this of ering and all oth er digital services such as data and adress management. accordingly, austrian post is already optimally equipped for the general data protection regulation scheduled to take ef ect in the eu in 2018. “letters continue to enjoy a high level of trust.” h e threats posed by cybercrime underline the strengths of analogue or physical forms of communication. surveys carried out by austrian post show that customers are very aware of this. online shopping is expanding, both in ab solute and relative terms. nevertheless, the letter remains the preferred option when it comes to conveying really important information. h ere are many documents which important information. h ere are many documents which citizens and companies would rather physically store in citizens and companies would rather physically store in their i les, such as contracts, invoices and registered mail. their i les, such as contracts, invoices and registered mail. it is obvious that the young generation, the “digital na it is obvious that the young generation, the “digital na tives”, do not want to do without the online option. h e tives”, do not want to do without the online option. h e challenge for austrian post is to optimally position itself challenge for austrian post is to optimally position itself in of ering services for both channels. § totally secure: § totally secure: if shipments are sent by mail i.e. transported if shipments are sent by mail i.e. transported by austrian post employees, every single mail by austrian post employees, every single mail item is protected by postal secrecy. to put it item is protected by postal secrecy. to put it more simply, §3 postal act states that it is more simply, §3 postal act states that it is nobody’s business whom people send some- nobody’s business whom people send some- thing to, how large the item is and how many thing to, how large the item is and how many items are sent to a particular address. no items are sent to a particular address. no information about postal trafi c is passed on information about postal trafi c is passed on by austrian post employees without substan- by austrian post employees without substan- tial legal grounds and a court ruling. postal tial legal grounds and a court ruling. postal secrecy does not apply to people who come secrecy does not apply to people who come into contact with a mail item after it has been delivered. however, sealed mail items are still protected by the secrecy of correspond- ence as guaranteed by law. this means that nobody – with the exception of the intended recipient – is allowed to open it. the secrecy of correspondence is enshrined in human rights law, namely in art. 10 of the european convention on human rights, protected by constitutional law in austria as laid down in art. 10 basic law on the general rights of nationals of 1867 and by criminal law in § 118 austrian criminal code. whether analogue or digital, austrian post maintains countless tools on all levels and across all divisions to ensure that print and online channels are secure. h e measures range from access restrictions and identii ca tion requirements to track and trace, special checks and compliance hotlines. whenever possible, austrian post subjects its services to external testing and certii cation. h is is designed to avert threats for which there may possibly be a “blind spot” standing in the way of their detection. for example, the austrian post subsidiary scanpoint was granted certii ca tion in 2015 and 2016, taking account of the fact that it faces high security expectations as a consequence of its activities as an information archiving service provider.
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 20 “whoever proves his value wins people’s lasting trust.” h e issue of security is also of particular importance to post.wertlogistik. h is austrian post subsidiary focuses on a valuables and cash in transit service, cash manage ment and the storage of valuable goods. walter fellacher has served as its managing director since 2006. h anks to his fourteen years of professional experience, he knows the sensibilities of the business back to front. “if a cus tomer entrusts his money to us, our job not only entails transport and storage but also protection. for this reason, in our area of work customers carefully consider which partner to place their coni dence in.” i n t e g r at e d s e c u r i t y i n t e g r at e d s e c u r i t y m a n a g e m e n t a s a n m a n a g e m e n t a s a n i n s t r u m e n t t o m a s t e r i n s t r u m e n t t o m a s t e r r i s k s i n c y b e r s pa c e r i s k s i n c y b e r s pa c e i t & c y b e r s e c u r i t y a s t h e c o r e c r i t e r i o n i n s e l e c t i n g i t s o l u t i o n s r e g u l a r a u d i t s b y i n d e p e n d e n t s e c u r i t y e x p e rt s post.wertlogistik is doing a lot to make sure that it is post.wertlogistik is doing a lot to make sure that it is the preferred choice. h e issue of security is a matter of the preferred choice. h e issue of security is a matter of the highest priority in all areas, applying just as much to the highest priority in all areas, applying just as much to structures and processes as to technologies. an integrat structures and processes as to technologies. an integrat ed management system developed in accordance with ed management system developed in accordance with the iso 9001 standard documents the clearlydei ned the iso 9001 standard documents the clearlydei ned processes and controls and provides a framework for se processes and controls and provides a framework for se curityoriented activities. “we steadily and very systemat curityoriented activities. “we steadily and very systemat ically monitor the system parameters of risk, security and ically monitor the system parameters of risk, security and quality via our integrated management system”, explains quality via our integrated management system”, explains walter fellacher. ongoing investments in technical security precautions ongoing investments in technical security precautions and internal processes improved in cooperation with and internal processes improved in cooperation with the police have made the branch oi ces of austrian post the police have made the branch oi ces of austrian post much safer. dietmar ramharter, head of branch network much safer. dietmar ramharter, head of branch network security management, adds: “you cannot impose securi security management, adds: “you cannot impose securi ty. you have to live it.“ statistics show that the implement ty. you have to live it.“ statistics show that the implement ed measures have borne fruit. only two branch oi ce rob ed measures have borne fruit. only two branch oi ce rob beries took place in 2016.
21 k e y t o p i c : t r u s t the security of customer data and their it infrastructure are a key digital value of austrian post s e c u r i t y k n o w- h o w o f o p e r at i o n a l s e c u r i t y k n o w- h o w o f o p e r at i o n a l s e r v i c e p r o v i d e r s a s a n i m p o rta n t s e r v i c e p r o v i d e r s a s a n i m p o rta n t q u a l i t y f e at u r e q u a l i t y f e at u r e o n g o i n g a n a ly s i s o f c y b e r r i s k s o n g o i n g a n a ly s i s o f c y b e r r i s k s a n d a d a p tat i o n o f s e c u r i t y m e a s u r e s a n d a d a p tat i o n o f s e c u r i t y m e a s u r e s t o r e f l e c t t h e s e r i s k s t o r e f l e c t t h e s e r i s k s deepseated conviction is the basis for his adherence to this philosophy. “h e list of potential threats to austrian post is quite long, as it is for all companies. h is begins with property crime and extends to exploiting mail as an instrument for committing criminal of ences. h e only way for us to successfully deal with this is to ensure that the entire organisation remains extremely vigilant at all times.” “apart from that, austrian post also has a reputation to uphold”, says christian paul, getting to the heart of the matter. “as an essential component of the austrian in frastructure, we have developed a competitive edge. as a result, it is fair to say, “if it really counts, rely on austrian result, it is fair to say, “if it really counts, rely on austrian post.” “we can only ensure security via permanent teamwork.” h e question of how the issue of security is bundled and managed at austrian post ultimately leads one to the “group security” department, which has been led by christian paul since may 2016. “we are addressing the problem of security with a great deal of respect”, he says. “what is at stake is nothing less than our ability to fuli l our service commitment day in and day out in handling more than 15 million customer orders.” accordingly, his responsibilities are particularly complex, ranging from strategy development and formulating policies and guide lines to specii c behavioural rules designed to breathe life into theoretical instructions. christian paul is supported by a team of six employees. together they continuously monitor and assess the over all situation, contributing their individual experience and knowhow. in this way employees working for other areas of the company can learn from any incidents that hap pen and strategically equip themselves to avoid risks in the future. all this shows that the “security team” of austrian post extends far beyond the group security department. “security concerns all austrian post employees. it does not only take place in my oi ce, but everywhere. h is means that every colleague in the austrian post group is an integral part of group security.” christian paul’s
an interview with the management board a u s t r i a n p o s t m a g a z i n e 2 0 1 6 22 closeness creates trust an interview with the management board the dynamic pace of change in the economic environment also impacts austrian post’s business. the developments bring new tasks and challenges, but also open up opportunities. in an interview, the management board responds to questions on current issues and provides an insight into its opinion about the future of austrian post.
23 k e y t o p i c : t r u s t w a lt e r h i t z i g e r , w a lt e r o b l i n , g e o r g p ö l z l a n d p e t e r u m u n d u m ( f r o m l . t o r . )
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 24 w a lt e r h i t z i g e r m e m b e r o f t h e m a n a g e m e n t b o a r d m a i l & b r a n c h n e t w o r k d i v i s i o n why did you choose “trust” to be the motto of the annual report 2016? g e o r g p ö l z l : we are going through a period of major changes in so ciety, politics and the economy. our sector is characterised by declining letter mail volumes as a result of electronic substitution, more intense competition and growing parcel volumes. h e competitive environment is getting harsher. against this backdrop, it is important for our company to see what our competitive ad vantages are. h ey not only include our operating performance and market lead ership in austria but sot factors as well. h e bottom line is that the individual aspects of our performance promise such as quality, security and reliability can be summed up in one word: trust. it is a core element in our dna, the fabric of our company which closely links us to all our stakeholders – to customers, partners, employees and of course our shareholders. h is is because they can have coni dence in a strategy implemented in line with a very clear capital market positioning. all our relationships have evolved and matured in the long term, due to the fact that we have repeatedly fuli lled our promises over many years. let’s continue focusing on customers. why do they trust austrian post? g e o r g p ö l z l : h e answer is simple: customer proximity. for many people, austrian post stands for the reliable mail carrier from next door, which we have observed time and again in our customer surveys. h e mail carriers regularly get the best marks. h ey are the ones who are part of the village or neighbourhood and know the people and their habits. if the recipient is not at home, they know where to drop of the parcel so that the addressee does not have to pick it up at the branch oi ce. h is proximity builds trust. nothing can replace it. in spite of all the innovative solutions that are available, human contact remains the most important factor in a customer relationship, and is supported by high quality delivery and the nationwide availability of our services. nevertheless, major changes are taking place, and competition is tough. what makes you so certain that austrian post will continue to successfully assert itself on the market? w a lt e r h i t z i g e r : change is a daily companion in our business. we see that letter mail volumes are declining around the world. austria is not dif erent to this, and last year we faced a drop of 5 % in traditional letter mail volumes. h e market for direct mail items, the second important pillar of our business, continues to be rather volatile and is impacted by a weak economic environment. h is does not mean we will bury our heads in the sand. we will continue to develop the company and upgrade our products. h is begins with improved ser vices and processes such as the hybrid letter with advice of receipt, which makes the delivery process for oi cial mail easier and more secure when the recipient directly puts his signature on the handheld, and extends to the eletter. what is the situation in the parcel market? p e t e r u m u n d u m : parcel volumes are steadily growing thanks to the online shopping trend. at the same time, new competitors have recently stepped onto the playing i eld, and we have to hold our ground against them. in this re gard, we attach great importance to innovation, and rise to the challenge of ful i lling the increasing demands of our customers – whether senders or recipients. we always consider both sides, and work to generate added value for the sender and ensure comfort for the recipient. we proi t from being part and parcel of the everyday lives of our customers. we see what moves them, and the knowledge we
25 k e y t o p i c : t r u s t p e t e r u m u n d u m m e m b e r o f t h e m a n a g e m e n t b o a r d p a r c e l & l o g i s t i c s d i v i s i o n g e o r g p ö l z l c h a i r m a n o f t h e m a n a g e m e n t b o a r d c h i e f e x e c u t i v e o f f i c e r gain is directly integrated into our of erings. take the example of the customer’s need for “l exibility”. last year we managed a 92 % success rate for parcels on the i rst delivery attempt. h is is a topnotch result. at the same time, we deposited two million items in our pickup stations. and since autumn 2016, customers have been able to use the flexibox, which “substitutes” for them in accepting parcel delivery at their front door. we will be able to withstand any kind of competition as long as we quickly identify and fuli l customer requirements. the capital of austrian post are its employees who keep the promises made by austrian post day in and day out. how can you ensure that they are trustworthy? g e o r g p ö l z l : h is can only be achieved with a functioning trust and performancebased culture. it cannot be done under constraint, but only through conviction. moreover, it is important to mention that such a corpo rate culture must be continuously cultivated. several years ago, we developed a short and understandable mission statement to enable all of us at austrian post to know how to orient ourselves in our interactions with each other. h e focus is on respect, appreciation and open communication. for example, this means we always treat each other fairly, even in the light of dii cult tasks and dif ering interests. naturally the mission statement not only applies to the way we work inhouse, but in our everyday dealings with our customers. i am very happy and thankful to be able to say that our employees are the most important drivers of our success thanks to their dedication and com mitment.
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 26 p e t e r u m u n d u m , g e o r g p ö l z l , w a lt e r h i t z i g e r a n d w a lt e r o b l i n ( f r o m l . t o r . ) let us turn to the issue of the growing importance of online communication, which also impacts the letter business. how do you see and deal with this development? w a lt e r h i t z i g e r : it is true that the digital world is an important aspect of our daily lives. however, many customers continue to prefer traditional letter mail when it comes to relevant and individual contents. h e reasons are obvious and literally in our hands. h e recipients directly get their hands on the mail item without having to log in and look to see if mail has perhaps arrived. h e physical letter is not overlooked and is transparent. it is clear who the sender is, a fact that can no longer be taken for granted against the backdrop of increasing online data abuse. h e physical letter is an alternative to online communication, once again underlining the advantages for the customer. nevertheless, we see the increasing volume of online correspondence as an opportunity to of er meaningful complementary services. as a service pro vider, we want to i nd a suitable solution for every path and service customers make use of. h e eletter is an example of a very customeroriented product. it makes it possible for customers to decide themselves whether they want to re ceive analogue or digital documents. h is is a reasonable solution and an optimal symbiosis.
27 k e y t o p i c : t r u s t is it possible for austrian post to transfer the trust it commands to online communication? w a lt e r h i t z i g e r : trust has to be earned. h is takes place on the ba sis of reliability and security, regardless of the particular medium. accordingly, security is not an option for us but a prerequisite. at austrian post, we give our customers an ambitious service commitment we have to fuli l in all our activi ties. h e digital world is extremely dynamic and calls for special attention. for this reason, it was important for us, for example, to be able to address the issue of security at the moment we introduced our i rst online product on the mar ket. generally speaking, we feel obliged to live up to the trust customers place in us in all our services, irrespective of whether a printed or digital message is conveyed at the end. our claim is to convince customers in general by of ering high quality. in this way, we also want to be worthy of the coni dence placed in us by our customers in the future as well. customer behaviour has also become a dynamic process. the customer is increasingly discovering how convenient it is to shop using an online ordering portal. p e t e r u m u n d u m : we can observe every day that online shopping encompasses a growing number of products and customer groups. h e growth rates are enormous, and we at austrian post also proi t from this. we have made adjustments by expanding our capacities at an early stage and extend our service of ering in a targeted way. our mail and parcel carriers reach all austrian households each day, and can continue delivering most parcels throughout the country on the next day. we of er the broadest range of services in austria thanks to 1,800 postal service points, 334 selfservice zones, nearly 260 pickup stations and more than 18,000 pickup boxes. with our post app, customers can track and trace the path their goods take at any time, or redirect them to another location by using their tablets or mobile phones. it is extremely crucial for us to maintain our quality at a top level. like in every growing market, the austrian market also lures competitors we have to successfully cope with, ideally before they can establish a foothold. h e issue of innovation plays a very important role in this regard. can you brieﬂ y explain this? p e t e r u m u n d u m : h ere is a saying which also applies to our market, “whoever stands still falls behind.” h at is why we ask ourselves all the time what new solutions will be able to create added value for our customers. we do this internally with our teams but also in collaboration with external partners and universities. some time ago we set up our own online innovation team for technical online solutions, which works very successfully today. in addition, we also conclude strategic partnerships. last year we ac quired a 30 % stake in acl, a leading service provider in the i eld of ecom merce solutions. h is opens up new opportunities and enables us to develop new service of erings. we also receive new impetus from partnerships with startups. in the meantime, our “post startup challenge” has become a per manent i xture at the “pioneers festival” in vienna. as a publicly listed company, you also try to win the conﬁ dence of investors. what do you promise them? w a lt e r o b l i n : in the i rst place, it is important for us to be very trans parent for our investors so that they will get a clear picture of us. we benei t from the fact that we pursue a simple and predictable business model which w a lt e r o b l i n m e m b e r o f t h e m a n a g e m e n t b o a r d c h i e f f i n a n c i a l o f f i c e r
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 28 has also proven its value in times of crisis. for example, we suf ered hardly any losses during the 2008/09 crisis. however, we are not a typical growth stock. a shareholder has to be aware of this before investing in austrian post. it is the i rst and fundamental aspect of our investment story. our business model is tried and tested, and keeps us in a stable number one position in austria. second, we also boast a strong balance sheet without the need for borrowed capital. we can i nance our expenditures from our cash l ow, and generate a signii cant free cash l ow every year. h at is why we are in a position to promise a stable dividend to our shareholders, the third part of our investment story. we distribute at least 75 % of the group net proi t each year as a dividend. and fourth, we keep the promises we make. since the ipo we have always fuli lled our dividend promise. we will do everything we can to maintain this predict ability in the future. what risks does an investor take when investing in the post share? w a lt e r o b l i n : it goes without saying that every company is subject to certain risks. h e biggest threat we see on the horizon is the decline in letter mail volumes. each drop of 1 % means a corresponding revenue decrease of eur 7m. we anticipate an ongoing reduction in addressed letter mail volumes, mainly as a consequence of electronic substitution. we have to compensate for this. h is can be done partially through cost savings, but also on the basis of innovations and product developments we launch on the marketplace. we also see new players entering the parcel market. on balance, parcel growth is high, and naturally our competitors want to proi t from this. as a result, market shares have shit ed slightly. nevertheless, we once again generated growth in the number of parcels we delivered in 2016, from 80 to 81 million. how do you rate austrian post’s performance in the 2016 ﬁ nancial year? w a lt e r o b l i n : our business results were very satisfactory in light of the challenging market environment. we succeeded in increasing operating ebit from eur 198.0m to eur 202.3m. in turn, this serves as the basis for raising the dividend. we will propose a dividend of eur 2.00 to the annual general meeting. in this way, we once again emphasise our positioning as a reliable and predictable investment. so, is it possible that in the future customers, partners and shareholders will be able to continue having conﬁ dence in austrian post? g e o r g p ö l z l : we are working on this every single day, fully aware that we do not have a subscription to trust which we can simply renew. we are i rmly committed to bolstering the coni dence customers place in us, also in the future. for this purpose, we will preserve what our customers appreciate about us i.e. our high delivery quality and physical closeness via a nationwide network of postal service points and selfservice zones. at the same time, we will continually expand our services with a view to generating added value for our customers and further optimising our structures and processes.
solutions & services 29 s o l u t i o n s & s e r v i c e s quality for our customers 30 a h u m a n b e i n g r e m a i n s a n a l o g u e 44 w e l l r e c e i v e d o n l i n e s o l u t i o n s 37 t h e m i l e o f t r u s t – l o g i s t i c s a s t h e s u c c e s s f a c t o r i n e - c o m m e r c e 50 i n n o v a t i o n s k e e p f l o w i n g
a human being remains analogue a u s t r i a n p o s t m a g a z i n e 2 0 1 6 30 a human being remains analogue only that which is perceived can have an impact. hat is why it is essential to reach a person where he is at a given moment. his is best achieved when analogue channels are used in addition to digital ones. up until now people have searched for places to ind peace and quiet in addition to the digital world. paper serves other needs than bits and bytes. printed material which ends up in the letterbox has the un- divided attention of the recipient. austrian post is the market leader in the delivery of letter mail and direct mail items and the ideal partner to develop and implement print campaigns.
31 s o l u t i o n s & s e r v i c e s twice a week the collective adverting envelope kuvert is brought to about 3.1m austrian households, full of of ers made by advertisers. h is attractive adver tising tool reliably delivered by austrian post has steadily succeeded in reaching the desired recipients for more than i ve years. h e kuvert, which 89 % of all austrians are familiar with, is not only well received but is also consist ently used and read. 64 % of all readers take advantage of the kuvert to inform themselves about the latest of ers and promotions. accordingly, this advertising medium opens up enormous opportunities for business. h erefore, it is not surprising that an increasing number of advertisers take ad vantage of this service provided by austrian post. 2.6 m readers readership growth kuvert* 2016 2015: 2.2m 2014: 2.1m i s w e v r e t n i e n i l n o 0 0 0 , 6 , 6 1 0 2 t n i r p - i w a c *
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 32 dialogue marketing expenditures 2015* online 540.3 eur m 8 % customer and member magazines print 1,059.1 eur m thereof: 6 1 0 2 12 % supplements in newspapers/magazines 22 % addressed direct mail 35 % unaddressed direct mail y r a u r b e f d n a y r a u n a j n i d e t c u d n o c s e n a p m o c f i o s r e g a n a m g n s i t r e v d a d n a i 23 % catalogues g n i t e k r a m 0 0 5 f o y e v r u s a f o s t l u s e r *
33 s o l u t i o n s & s e r v i c e s — getting attention with an analogue approach direct mailings or a catalogue used in product ad vertising also score points, just like the kuvert. hey all have something in common, namely that they work in an analogue manner. and there is a good reason why this is the case – they actually reach and impact people. austrian companies are also very much aware of the strengths of printed materials. his has been conirmed by a study implemented by the market research institute market mind with respect to trends in advertising expenditures on the part of austrian companies. contrary to every forecast about the substitution of conventional advertising by online communication, the report clearly shows that wellknown tools are the big winners when it comes to advertising spending. on balance, expenditures on conventional adver tising rose 7 % in 2015, compared to “only” 4 % for online marketing. two out of every three euros spent on dialogue marketing are invested in print media advertising. flyers are en vogue the conventional lyer is a highly- regarded information tool in austrian households with 6.3m readers, and ranks among the most effective means of advertising. 97 % of recipients take notice of this form of non-personal- ised advertising and actively use it. a gallup study carried out in 2016 concludes that the contents of tv and internet advertising are only recalled by 24 % and 9 % respectively of the target group. this contrasts with a convincing 76 % rate for people getting lyers. the austrian post brochure award took place in 2016 for the 10th time. the most popular lealets and lyers were once again chosen by means of public voting and given the “golden poldi”. the growing enthusiasm for lyers as an advertising medium is shown by the high level of voter par- ticipation, with austrians casting 20 % more votes than in the previous year. paper alone is no guarantee for strong emotions. stories are irst well accepted when they are actually well received. in other words, the right story needs a suitable recipient. ultimately the loyal heart displayed on the cat alogue of a romantic hotel in tuscany will not move the backpack tourist in the outback to tears. individual approach if half of the catalogue is written for someone else, the customer relation- ship is at a very low intensity. personalisation is the secret to success. and this is precisely what austrian post successfully does. he bottom line is that this approach leads to twice as many business deals. for example, accorhotels consistently diferentiates between its classic and silver customers on the one hand and gold and platinum customers on the other hand, cor respondingly tailoring its appeal to customers with the sup port of austrian post. his diferentiation, complemented by a personalised direct mailing promising a highquality reward for every application for every newsletter registra tion, helped the french hotel chain to achieve a 29 % re sponse rate from its gold and platinum customers. his rep resents a 200 % improvement compared to the previous year. “for accorhotels, it is important to address le club accorhotels members in a personalised, individual and creative manner. the challenge is to ﬁnd the right communications mix to fully reach them and convey the value of the programme. the post mailing was a communications channel that caused quite a stir. in parti- cular, the respectful way of addressing our loyal members with gold or platinum status was very successful. the success of this campaign can be particularly attributed to the comprehensive consul - ting provided by austrian post as well as the outstanding cooperation with all those involved in this project.” s a b i n e t o p l a k , v i c e p r e s i d e n t s a l e s & d i s t r i b u t i o n a u s t r i a , a c c o r h o t e l s
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 34 — the cornerstone: competent data and address management professional data and address management are es sential in addition to personalisation. his means knowing what is important for customers, and using this data as the basis for appealing to them. austrian post is simply unbeat able in this area. customers can select their optimal target group from among 3.2 million households on the basis of many criteria. existing customers are analysed with statis tical methods and models in order to put together a clear customer proile. professional target group splitting and systematic regionalisation ensure that messages are per fectly tailored to customers. for example, this was the case with alfa romeo, which relied on the allround service of austrian post in launching its alfa romeo giulia premium limousine. all aspects of the campaign were ideally aligned, from the initial concept, wellfounded target group proil ing and crossmedia mix to live media monitoring and lead management. “he dialogue marketing campaign imple mented in collaboration with austrian post far surpassed our expectations. he response rates were consistently high, enabling us to provide our dealers with numerous and very useful leads”, states a pleased elisabeth rössler, brand marketing communication manager at jeep & alfa romeo. — personally informed mediumsized irms in particular rely on targeted direct marketing, especially because, in contrast to multi nationals, they are not able to beneit from the magnetism of a major brand. readymade solutions will not help much here. instead, they require customised products giving me diumsized companies the lexibility and eiciency they need. austrian post not only ofers suitable solutions but also personally assists companies as a valued partner. since 2014, micromeetings have been held in regional hotspots enabling irms to familiarize themselves with attractive ser vices and speciic success stories in the ields of geomarket ing, address management and direct marketing. his type of business breakfast has emerged as a permanent ixture for mediumsized enterprises. it is not only designed to con vey information but also ofers opportunities for personal contact, identiication of individual needs and network ing. word of the inherent potential quickly spreads. in the meantime, this sme initiative of austrian post has achieved an impressive outreach, attracting about 1,700 participants in 2015 and 2016. in addition to the popular events, austrian post provided information to both large customers as well as small and mediumsized companies about the enormous potential of personalised advertising within the context of a crosssectoral campaign. a reading rate of 84 % and a utilisation rate of 75 %, ater all, are reason enough for more than every third company in austria to invest in this advertising medium. in line with the motto, “even more is possible”, customers particularly in the retail, automotive and tourism sectors were provided with contents tailored to their speciic business, and discovered how to proitably exploit addressed advertising. — international business mail customers not only take advantage of the strengths of analogue communication in austria. everyday austrian post international picks up global busi- ness mail in germany, and takes care of franking, sorting and direct shipping the mail items to the tar- get country. the advantage for business customers is the pinpointed, predictable shipping of catalogues and advertising mailings in germany and throughout the entire world. thanks to the extensive international experience of austrian post international, companies can be conident of getting the optimal dispatch solution. depending on the objective and destination country, mail items can even be designed in a “local look” typical for that area. this comprises a clear advan- tage when it comes to enhancing the impact on the recipient. additional services such as returns and response management, address analyses and target market consulting round off the portfolio, so that inter- national customers beneit from austrian post’s customarily high standards of quality and reliability.
35 s o l u t i o n s & s e r v i c e s —safe and secure in situations where people do not want to take risks, they always rely more on their own senses than on tech nology. analogue communication appears to be reliable because it is something tangible and handson. reliability is particularly important when money is involved. austrians prefer to get their invoices in printed form, whether privately or in their professional work. as with the sending of invoices, the entire public sector attach es particular importance to security. every oicial govern mental process, whether at court or also on the part of the police force, must be completely watertight and function securely. it comes as no surprise that the public sector con tinues to rely on printed documents. for example, one of the largest letter mail customers is the austrian judiciary. in the irst half of 2016 alone, close to 2.5m mail items were sent requiring receipt conirmation, and almost 2.0m con ventional letters were processed by the central mailroom of bundesrechenzentrum gmbh, the federal computing centre. here’s no reason at all to stand still. in the summer of 2016, the delivery process of hybrid letters with advice of receipt was successfully modernised. he portable comput er (handheld) used until now for parcel deliveries and regis tered mail will now also be used for registered rsa (person al delivery) and rsb (signed by the recipient) letters. he handhelds promote customerfriendly service and make daytoday work easier. earlier, a separate conirmation slip had to be illed out for every letter with advice of receipt, and was recorded at the end of the delivery tour. in the meantime, status information is directly entered into the handheld device, signed by the recipient and immediately transmitted to the austrian post server and subsequently to the electronic procedure register. his not only saves time but also reduces the susceptibility to errors.
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 36 world’s first stamp made of glass and first dirnl embroidered stamp postcards and letters can now be decorated with two new special stamps. in the summer of 2016, austrian post presented the world’s i rst stamp valid for franking which is made of glass, and in september 2016 it issued the i rst embroidered dirndl stamp. the glass stamp shows one of the famous pictures from the upper austrian municipality of sandl, namely a reverse glass painted pietà in front of the cross. the dirndl stamp complements the leather trousers stamp issued in 2015 on the occasion of the “wiener wiesn” festival in the vienna prater. vote around the clock the public sector as a customer – simple, barrier-free voting, 24/7, in the smallest polling station – austrian presidential election 2016: every i fth vote cast by absentee ballot —the best choice one year at er the ipo of austrian post, the reform of the electoral law served as the foundation for absentee voting in all elections since july 2007, even in the case of national referendums. since then austrian post has been a committed partner of the electoral commissions, providing support when elections take place. austrian post handles the myriad tasks related to postal voting with the utmost precision and reliability, from hanging up electoral rolls and sending absentee ballots to handing the ballots over to the electoral commission. eligible voters are aware of this. a record number of votes were cast by absentee ballot in the austrian presidential election. — conclusion: more than “0” and “1”, also in the future digital communication scores high marks thanks to its speed, the incisive contents and low costs. online com munication is appealing when the focus is on comfort. but even in the future, people will still have their moments when they need more than a binary “0” and “1”, moments of special attention and care – when security is a key issue. h ese are the moments for a real piece of paper. people use paper to cultivate important relationships, successfully gen erate revenue and be on the safe side when handling their legal af airs. h is means that in the future, analogue communica tion will continue to be important. h e same goes for its digital counterpart.
the mile of trust 37 s o l u t i o n s & s e r v i c e s the mile of trust logistics as the success factor in e-commerce
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 38 a customer shopping in a retail outlet can hold the item in his hands, whereas online sales mean he has to rely on other people. in a relationship based on trust, the pivotal issue in e-commerce is the ability to ofer an established platform and transparent logistics. his is what austrian post is focusing on. functioning and transparent logistics play a decisive role in online shop ping. for one thing, it shortens waiting times between purchasing and receiving the goods. it also enables the customer to know exactly where the parcel is at a given moment. in this way, the sender is able to bridge the distance between the online retailer and the customer in a twofold manner, and build up a valuable customer closeness via transparent and reliable logistics. a sophisticated logistics concept for ecommerce is not limited to transporting the purchased items from one point to another, but goes even further. it ranges from suitable packaging and customised shipment structures to convenient delivery options for the recipients. he crucial factor is what goes down well with customers. ultimately the entire process should become more comfortable and convenient for them. his is pre cisely what austrian post’s ofering aims to achieve. — on the same wavelength as the customer: the easy way online austrian post is the market leader for parcel delivery. as the largest pro vider, it is continually expanding its services and gives the domestic economy a simple means to increase its online retail presence on the basis of platforms and customised shipping solutions. sales in traditional physical stores are virtually stagnant, whereas ecommerce ofers high growth potential. at present online shopping accounts for 11 % of total retail sales in austria. however, more than half of this revenue is not generated in austria. for this reason, austrian post cooperates with the federal economic chamber to organise business breakfasts designed to inform companies and decision makers in the retail sector about the latest developments in ecommerce and map out paths to increase their business online. he solutions ofered by austrian post aim to strengthen the austrian market and extend its ecommerce ofering. recently austrian post acquired a 30 % stake in the styrian it service provider acl advanced commerce labs gmbh. austrian post can ofer serviceoriented, onestopshop solutions in col laboration with this leading provider of ecommerce solutions for large retailers and brand manufacturers in austria, germany and switzerland. it starts with the online marketplace and extends to fulilment and transport. with the support of austrian post and acl, physical stores can gradually expand their ofering, com bine the branch business with an online shop and a merchandise management
39 s o l u t i o n s & s e r v i c e s system, take advantage of the online marketplace and conveniently have austrian post handle the entire logistics along the ecommerce value chain. interested re tailers get the required services from a single source, and can also assign respon sibility to austrian post for order and customer management as well as payment management, order picking, packing, distribution via an efective transport net work and returns management. starting in april 2017, austrian post will add another tool to facilitate the retail sector’s online presence, namely the new marketplace called “shöpping.at”. featuring a wide range of products and the delivery quality people are accustomed to, it is designed to become an interface linking local merchants and consumers. service along the e-commerce value chain w customer service/ call center track & trace, return services, innovative customer solutions returns management nationwide distribution storage, order and inventory management, order picking, packaging market place inclusive of marketing and payment order management, customer data management
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 40 — perfectly customised: new services make customers’ lives easier in ecommerce delivery speed is a crucial factor in the relationship be tween the customer and the retailer. he customer wants to hold the purchased merchandise in his hands as quickly as possible. he does not care if the goods come from europe or asia. in light of the fact that an increasing number of cus tomers are ordering goods directly from china, austrian post is optimising its shipping options from the far east. he project name “fast lane to europe” says it all. shipments from china will be easier in the future, but above all faster. he mailorder company jakoo from germany also considers austrian post to be the optimal partner for its crossorder business. he company uses austrian post for its shipments from germany to austria. austrian post picks up the parcels directly in germany. “we were looking for a reliable partner to mail our parcels to austria. we were convinced by austrian post’s service ofer ing, featuring ideal solutions for lexible and convenient delivery. accordingly, we can ofer our customers speedy and comfortable delivery”, says bernd kleim, logistics manager at jakoo, in justifying his selection of a logistics partner. austrian post also revamped its product portfolio in order to ensure even better service. an ecommerce friendly shipping structure meeting the needs of this fastgrowing segment lies at the heart of its eforts. online shopping primari ly involves lightweight items such as books and clothing weighing up to two kilo grammes. he new “packet” product group ofers a free track and trace service if needed, and the smallest size “s” can be deposited in a normal letterbox. as a consequence, it can be delivered even in the absence of the recipient. — now it’s getting personal: product meets buyer he overriding objective in online sales is to make everything as simple as possible for customers. his means no obstacles in shopping, securely packed goods as well as quick, transparent and uncomplicated delivery. all this builds trust, but the mail order company itself has no means of ensuring successful de livery, and must depend on a reliable logistics partner. he point in time in which the buyer receives the goods represents the precise moment of direct contact. his separates the wheat from the chaf. did the package arrive undamaged? was the recipient able to change the delivery location as necessary? it is hard to overestimate the signiicance of the last mile. austrian post acts in a customercentric manner by steadily expanding its range of services. in the meantime, saturday parcel delivery has become a mainstream service, and the practical redirection option enables recipients to change the location or time of delivery. parcels can automatically be sent to a nearby postal service point, pickup station or neighbour of one’s choice thanks to the permanent parcel forwarding feature. he measures contribute to the high p e r s o n a l a n d r e l i a b l e
t h e p o s t p i c k - u p b o x e n a b l e s pa r c e l s o f a l m o s t a l l s i z e s t o b e d e p o s i t e d w h e n t h e a d d r e s s e e i s n o t a t h o m e . 41 s o l u t i o n s & s e r v i c e s irsttime delivery success rate of austrian post, in which 92 % of recipients have the gratifying experience of getting their items on the irst delivery attempt. he post flexibox available since 2016 allows parcels, largesize letters and packets to be delivered in the customer’s absence at any time by depositing them in front of the customer’s doorstep. he flexibox is simply attached to the door frame with a slashproof strap when leaving the house. he mail carrier opens the box with his chip and puts the mail item inside. while the flexibox is locked, the customer receives a message that the parcel has been let inside. he removes the parcel with his personal chip. in this way, the purchased item and the customer come together directly and conveniently. austrian post provides even greater comfort in a pilot project being carried out by its subsidiary feibra. sameday delivery is possible, and the customer can select a twohour time slot between 8 a.m. and 9 p.m. in addition to the desired delivery date. flexible delivery is also ofered by the austrian post subsidiaries in croatia and hungary. for all these services, the customer alone decides the time of delivery in the ordering process. austrian post also launched the comfortable pickup of return parcels in october 2016. if the mail carrier brings a parcel, the customer can give it back to him with a return shipping label or printed parcel stamp aixed to it. accordingly, the mail carrier not only takes care of delivery but picks up parcels and accepts returns at the same time. it is now even easier for customers to return or drop of parcels. a r o u n d - t h e - c l o c k a va i l a b i l i t y f o r t h e r e c i p i e n t: t h e p o s t p i c k - u p s tat i o n t h e f l e x i b o x e n a b l e s t h e s e c u r e d e l i v e r y o f pa r c e l s at h o m e . i f n e e d e d , i t i s p u t o u t s i d e t h e f r o n t d o o r a n d s e c u r e d t o t h e d o o r f r a m e w i t h a s t r a p. the goods go where the customers are longstanding logistics offerings should also be assessed in the light of the options opened up by e-commerce. one can be even more up-to-date! austrian post offers customised solutions.
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 42 — professional delivery makes one hungry for more problemfree logistics and short delivery times are particularly important in new business areas based on ecommerce. experts predict a rosy future for online food retailing. speedy, convenient and professional delivery is what is needed to make this happen. he bottom line is that the freshness of the food must be guaranteed. austrian post delivers cooled fresh foods to a person’s door step in specially designed insulation boxes. sameday delivery is ofered in the provincial capitals on request of the food store, and nextday delivery in the rest of austria. he cooler can be emptied at delivery and taken back by the delivery staf, or the customer sends it back by attaching the enclosed returns label. his means that shopping for food has become easy in every respect. no need to carry heavy bags anymore! food delivery is an attractive solution, especially in areas which are not reached by the branch network, or for people with reduced mobility. experts are convinced that food delivery services will enjoy great popularity in the future. demand for food delivered to one’s doorstep is already much stronger in other european countries such as great britain than in austria. here consumers still stick to old habits and beneit from a much larger network of retail food stores. in the future physical stores will do business in conjunction with online shops. he customer will stand in a store and resort to an app to order something for home delivery, or he will order online and pick up the food from the shop. as a result, two separate worlds will be connected to one another. whoever speedily and efectively delivers food will be rewarded by customer loyalty. he retail sector is on the safe side here with austrian post as its partner.
43 s o l u t i o n s & s e r v i c e s food delivery – the ultimate challenge in logistics customers should get their soups fresh, tasty and as quickly as pos- sible. this is the ambition of stefan kollbauer, founder of mysoup.at. mysoup specialises in the preparation of home-made seasonal soups which come in practical bottles. the target group is people who want to eat healthier but do not have the time to cook. “there are foodstuffs which are comparatively insensitive such as rice and tea, but we want guaranteed fresh delivery of our refrigerated soups to people’s doorsteps. this is only pos- sible with a competent partner”, says stefan kollbauer. his company takes advantage of austrian post’s effective shipping system to deliver its food products. austrian post’s insulation box keeps the goods cool for up to 48 hours. the mail order food business is devel- oping very successfully, and demand on the part of the retailers is strong. the offering is used more frequently in rural areas, and provides tremendous relief to the people. austrian post aims to accelerate growth in online food re- tailing by adding new services. same- day food delivery volumes tripled from 2015 to 2016, whereas next-day delivery showed a six-fold increase, but from a comparatively low level. s t e fa n k o l l b a u e r , f o u n d e r o f m y s o u p. at
well received online solutions a u s t r i a n p o s t m a g a z i n e 2 0 1 6 44 well received online solutions today people are used to being able to access the desired product or service regardless of the time and place. as a result, the expectations placed on austrian post and the services it offers are rising. austrian post’s online solutions stand out due to their customer benefits and comfort. what all the company’s solutions have in common is the underlying idea that things should be made even easier and more convenient for customers. n e w s e r v i c e : o n l i n e i d e n t i f i c at i o n b y v i d e o c h at
45 s o l u t i o n s & s e r v i c e s
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 46 — new technologies – — can letters and smartly used some 67 % of the austrian population purchased goods online in the third quarter of 2016. he desired prod uct is quickly ordered, but then they have to wait and be patient until the parcel is delivered. he track and trace ser vice enables customers to check the whereabouts of their parcel at any time and from anywhere via a post app or online. austrian post expanded this service in 2016 in or der to further enhance customer beneits. a photo of the parcel is made when it arrives and is initially scanned in the logistics centre, and is subsequently displayed to customers in the track and trace process. he time in which the item was received by austrian post becomes more transparent for the customer. he knows when his parcel is almost there. furthermore, the customer sees the size of the parcel, and can correspondingly plan for its transport or redirection. not to mention the fact that the photo increases the thrill of anticipating the parcel. austrian post exploits the possibilities opened up by new technologies to facilitate access of customers to the en tire online ofering. in order to be able to completely and optimally take advantage of austrian post’s online services, customers have to clearly identify themselves on the basis of their identiication data and personal signature so that the functions are activated. security, conidentiality and authenticity are austrian post’s top priorities when it comes to online orders. up until now, this was only possible in a branch oice or via mobile phone signature. however, in 2016 austrian post became one of the irst service providers to introduce online identiication to the austrian market. it is available at post.at and in the post app, and is imple mented by the business partner webid via a video chat. he beneit to the customer is that he can identify himself in an uncomplicated and secure manner from home or on the move in just ive minutes, even on sunday aternoon, when it is most convenient. documents be received electronically? certainly and securely! in addition to paper invoices, 50 % of all austrians prefer to electronically receive important personal docu ments such as insurance policies and bank documents. he conventional dispatch of documents via email involves an insecure transmission, and the data can be singled out and read by third parties. austrian post has developed a solu tion – the eletter – to ensure the totally secure electronic reception of sensitive documents and letters while main taining letter secrecy. sensitive documents are not select ed or read while being dispatched, but are deposited in a digital letterbox for the customer. he eletterbox enables access to letters and documents such as invoice and con tracts anytime, anywhere. he sender and customer can select from three security levels depending on their speciic needs. important items are received as quickly as an email but as securely as a letter. the e-letter physical delivery electronic delivery by a mail carrier via e-letter dual shipment if delivery is not possible electronically, austrian post prints the document and delivers it physically. austrian post takes the fastest way care of printing and to send letters franking austrian post delivery by mail ensures high level carrier of security
47 s o l u t i o n s & s e r v i c e s austrian post joined forces with an expert to launch the eletter. in the autumn of 2016, austrian post acquired an equity stake in sendhybrid, a pioneer in electronic deliv ery. his specialist for secure electronic document transmis sion enables the veriiable, time and locationindependent reachability of recipients and their access to an eletterbox via smart phone, tablet and pc. he highest possible data security and compliance with all international conditions and rules are guaranteed. — finding one’s bearings despite the informa- tion overload accelerating digitalisation not only means being in dependent of time and space but an overwhelming amount of information to be dealt with. in addition, increasingly quick decisions have to be made. is something important or unimportant, interesting or uninteresting? does it need attention immediately or later? austrian post has developed a variety of solutions to assist people to orient themselves despite the lood of information. an easy way to more energy since the liberalisation of the austrian electricity market, consumers have been confronted with the issue of what tarifs are the best and least expensive for them. for this purpose, austrian post has created an uncompli cated solution facilitating comparisons and making it easy to switch electricity and gas suppliers. he energy cost calculator ofered by austrian post to evaluate energy costs helps consumers to quickly gain an overview of electricity and gas tarifs in austria, inform themselves about dis counts and price models and compare ofers. subsequently they can select the most suitable rates free of charge, and save money at the same time. questions are answered by branch oice employees who can initiate the change in ser vice providers on request. no other costs or eforts are re quired on the part of the customer. austrian post also ofers this service online. customers can conveniently and lexibly compare ofers from their own homes or on the road, and change their suppliers with just a few clicks. p e r s o n a l s e r v i c e i n c h a n g i n g e n e r g y s u p p l i e r s e n e r g y c o s t c a l c u l at o r :
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 48 the best offers with only one click how can consumers search for the ofers that most in terest them and are tailored to their needs against the back drop of so many available ofers? and how can companies extend the outreach of their lyers, ofers and promotional campaigns and simultaneously reduce waste coverage? he digital retail marketing platform aktionsinder, in which austrian post has owned a 100 % stake since the fall of 2016, combines both of these beneits. here companies can also promote their lealets, lyers, ofers and campaigns online in addition to the direct mail items deposited in people’s letter boxes. moreover, users can browse through the digital lyers or targetedly search for ofers. recently the portal attracted 800,000 visits and about 25m lealet page views per month. accordingly, it ranks among the largest online portals for digital advertising lyers in austria. kuvert digital also links print and online me dia. in this case, advertisements are placed in austria’s most popular and highestreach news portals and then displayed when the contents relect the speciic interests of the user. — a better solution is created within the network austrian post continually searches for new, innova tive solutions to enhance customer comfort. austrian post is also involved in online approaches and thinks outside of the box due to the shorter paths and the creative ideas fre quently arising from networking. if customers are ofered added value, austrian post also cooperates with young, fresh startup companies to develop new ideas, or involves customers in brainstorming. goodbye christmas stress within the context of the “innovation to company” initiative of the vienna economic chamber, austrian post looked for new business models and solutions for the issue, “last mile – delivery to the end customer.” he focus was on intelligent sotware solutions for the most locationlex ible, timedeinite delivery services possible. he result was byrd, a startup optimising the “irst mile”. is this a contra diction? quite the contrary! byrd enables items to be sent directly from a person’s couch. shipping is authorised with just a few clicks via an app. he partnership started in vienna at christmas time. byrd picked up the objects from the customer and packed them securely for transport at the warehouse. austrian post took care of shipping and delivery. customers saved themselves the trouble of going to a branch oice during the christmas season. even ater the initiative, byrd and austrian post continue to work together successfully. the customers of tomorrow in search of new partnerships, austrian post also attended the “pioneers festival” in vienna in 2016 and or ganised the “post startup challenge.” it was a huge success. four young, innovative austrian companies convinced the expert jury of their business idea. storeme presented a plat form enabling the ofer or search for private storage options to the jury, which included four top austrian post man agers. camfex impressed the jury with a “stabilyzer” for gopro cameras. he company “erdbeerwoche” ofers eco logicallyfriendly hygienic products for women, whereas nuapua launched a new drinking system making sugarfree refreshments from water on the basis of its own lavoured capsules. he prize bestowed upon the four irms by austrian post involved media and mail volumes valued at eur 40,000 each. win-win start-up companies of today are tomorrow’s customers of austrian post. winning the “challenge” pays off for both sides.
49 s o l u t i o n s & s e r v i c e s a u s t r i a n p o s t s e e k s i n n o vat i v e i d e a s f o r t h e d e l i v e r y s ta f f o f t h e f u t u r e i n i t s i d e a s c o m p e t i t i o n . all-rounder in yellow how can the service ofering of austrian post be ex tended above and beyond logistics solutions? how can we expand the scope of activities on the part of the delivery staf and thus develop new services for private or business customers? hese comprise intriguing questions for which austrian post searched for innovative responses by hold ing an online ideas competition. his competition actively integrated consumers in the development of new products in order to ensure customer beneit. on balance, more than 200 ideas relating to diferent areas of company operations were submitted. he winners were determined according to the following criteria: creativity, originality, customer bene it and the willingness to pay for the services. in particular, data collection ideas were well received by all jury mem bers, especially state secretary harald mahrer. first place was awarded to the idea “data aggregation via the austrian post infrastructure” developed by max wöhrer. more spe ciically, sensors on company vehicles should measure air quality and noise development. his approach can also be used to identify zones with poor mobile phone or wlan reception. austrian post is currently evaluating the feasibil ity of the proposals.
innovations keep flowing a u s t r i a n p o s t m a g a z i n e 2 0 1 6 50 innovations keep flowing today it is possible to collect and evaluate unimaginably large amounts of data. for example, medical data can help to save lives because disease indicators can be identiied earlier. moreover, new technologies enable a wider range of people to gain access to the things of everyday life. all of us proit from this. digitalisation can be exploited as a tool for a better future, in which companies can ofer simple and eicient solutions to their customers. austrian post is working intensively on technological innovations to enhance the value of diferent solutions. cooperation with the cloud computing provider fabasot. his cloud solution enables a growing number of customers to optimise their documentbased business processes and increase the eiciency of their daily work. his expertise is also applied to mailroom management. here austrian post advises customers on how to introduce and simplify mod ern post handling processes. erste group bank has taken advantage of this ofering for about one year now and has completely placed responsibility for mailroom management in the hands of austrian post. — securely managed business customers want simple and reliable ship ping solutions, freeing up important resources for their core business activities. for this reason, austrian post continu ously strives to further develop digital shipping solutions. accordingly, business customers can now simply send their mail from their own desks. he innovative online service is called “tagespost” or daily mail. he customer easily enters the order by mouse click, and austrian post takes care of printing, enveloping and dispatch of business letters, guar anteeing the secure processing of the orders from a single source. at the same time, companies are faced with the need to process increasing volumes of information as eicient ly as possible. quick access to the right iles, simpliied worklows and standardised processes are all advantages of modern, digital document management. austrian post ofers secure and reliable solutions to its customers for this purpose. he “post cloud enterprise” was developed in
51 s o l u t i o n s & s e r v i c e s “we are very satisﬁed with this cooperation. we have been able to harmo- nise our standard services, shorten in-house procedures and optimise our processes. the results speak for themselves. the mailroom offers an up-to-date range of services and maintains the highest security standards against the backdrop of reduced costs. the comprehensive consulting provided by the document logistics experts convinced us. that is why we here at erste group bank decided to outsource our mailroom as a service function for our employees.” r e n at e t o m a s c h e k , m a n a g i n g d i r e c t o r , s o m o b j e k t m a n a g e m e n t g m b h mailroom management with austrian post incoming mail internal distribution outgoing mail value-added services security, transparency and efﬁciency enhancement — securely delivered security provided by technological solutions is also of the utmost importance with respect to other shipping services. for example, the subsidiary post.wertlogistik gmbh is a trusted partner for customers in sending valua bles. heir secure safekeeping and transport is ensured on the basis of unique hightech solutions conforming to the highest security standards. in contrast, other customers such as workmen, tech nicians or installers are constantly on the move. hey want their mail items to be delivered wherever they may be. he “trunk delivery” service is the targeted solution in this case, and is undergoing pilot testing in the linz area. how does it work? well, tradesmen place their orders, and austrian post delivers the items directly to their car boots, no mat ter where they are. he mail carrier uses an app to deter mine the location of the customer, and is given access to the trunk via a secure identiication. delivery information is transmitted per sms or app. he obstacle to nationwide implementation at present is the lack of a uniform tech nical solution to open diferent luggage compartments. nevertheless, austrian post is staying on the ball and mon itoring relevant developments. — healthy for sure economic security is a crucial aspect of the brand es sence of the company aep gmbh, a strategic investment of austrian post in the german pharmaceutical wholesale segment. it ofers planning reliability to pharmacies thanks to its unmatched and transparent terms and conditions applying to all pharmacies regardless of their size and lo cation. in this way, it makes an important contribution to strengthening the economic basis of owneroperated out lets, thus safeguarding the nationwide, highquality supply of medicines in germany.
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 52 w e l l a d v i s e d : c l e a r e x p l a n at i o n w i t h t h e g u i d e d s e l l i n g t o o l — securely sold he tasks to be performed by branch oice employees are becoming more complex and demanding. at the same time, the sale of additional products and services is becom ing increasingly important to austrian post. he customer wants to be given competent advice and ofered the right product. he “guided selling tool” fulils precisely this pur pose. he digital sales support places process knowhow at the forefront instead of professional knowledge, and par ticularly gives young or new employees the sales expertise they need. “it supports us as employees of austrian post to provide targetoriented, highquality advice to our custom ers”, explains a1 trainee amer sabic. “he products are well presented and illustrated. in this way, product and price bundling are transparent and understandable for custom ers.” — optimised logistics technological innovations can help unfold consider able potential, especially in logistics. it increases shipment volumes and makes relevant processes even more reliable. hat is why existing logistics centres were expanded and new, stateoftheart facilities were opened in 2016. a new parcel logistics centre is being built in wernberg, carinthia, whereas the distribution centre in villach will continue to handle letter and direct mail sorting. he sorting facil ity in zagreb, croatia was expanded and a new headquar ters with hub was put into operation in belgrade, serbia. he new ikitelli distribution centre in turkey is now fully operational. new depots were opened in pancevo, serbia and veszprem, hungary, the logistics hub in bratislava, slovakia was enlarged and a completely new hub was built in banska bystrica, slovakia. within the context of optimising its logistics process es, austrian post is currently cooperating with phs, a start up in graz. he project is called “entladeteppich”. its objec tive is the fully automatic unloading of lorries. a conveyor belt is built into the vehicle loor, onto which the parcels are stacked. ater driving into the logistics centre, this conveyor belt is pulled out and the parcels automatically head to the sorting machine. it may sound simple, but the solution in volves a globally unique hightech solution. — optimised storage prolog, which stands for process optimisation in logistics, is a department which bundles existing opera tions consulting knowhow at austrian post. he subsid iary systemlogistik, the fulilment specialist of austrian post, beneited from this expertise. storage processes of systemlogistik were more eiciently structured in 2016 in cooperation with dm austria. “prolog has proven to be a constructive and goaloriented business partner within the context of this partnership”, states manuel reif of dm austria. since 2013, the company has assigned responsi bility to the austrian post network for commissioning and delivering all its online orders. did you know that … … 20 km of conveyor belts are in operation in austrian post’s logistic centres? he examples show that new technologies are helpful and simplify process in diferent areas. his development is expected to continue. in this regard, austrian post will stay on the ball and examine new possibilities. it will ofer these solutions to customers and use them to enhance comfort and security.
shareholders 53 s h a r e h o l d e r s reliability for our investors 54 “ t h e t r a n s f o r m a t i o n w i l l c o n t i n u e ” a n i n t e r v i e w w i t h t o b i a s s i t t i g 59 f o u r k e y e l e m e n t s , o n e s t r a t e g y. 56 t e n y e a r s o n t h e s t o c k m a r k e t – d i v i d e n d s d e l i v e r e d p u n c t u a l ly
the transformation will continue a u s t r i a n p o s t m a g a z i n e 2 0 1 6 54 “the transfor mation will continue” he postal and logistics market is being shaped by two fundamental trends. traditional letter mail continues to decline due to so-called e-substitution. parcel volumes are growing particularly strong due to the ongoing boom in e-commerce. what opportunities does the future hold in store for us? an interview with the analyst and transport market expert tobias sittig, partner at main first bank. average mail volumes 2008–2016 average per capita parcel volumes growth forecast 2012–18 in % 0.0 – 4.0 – 8.0 –12.0 –16.0 d n a l r e z t i w s y n a m r e g a i r t s u a i m u g e b l i n a t i r b t a e r g n e d e w s e c n a r f s d n a l r e h t e n e h t k r a m n e d l y a t i in % 20.0 15.0 10.0 5.0 0.0 12.2 12.2 9.8 14.0 10.6 8.9 12.2 10.3 12.2 12.2 – 3.0 – 3.1 – 3.2 – 3.7 – 4.2 – 4.9 – 5.0 – 9.0 – 9.3 – 12.2 y n a m r e g i n a t i r b t a e r g d n a l r e z t i w s k r a m n e d e c n a r f a i r t s u a n e d e w s s d n a l r e h t e n e h t i m u g e b l i n a p s source: ipc and mainfirst estimates. source: dvz, september 22, 2015
55 s h a r e h o l d e r s austrian post operates as a service provider with a public service obligation as well as in the parcel business in a dynamic competitive environment. what are the main challenges today? what do you see when you look ahead in the future? t o b i a s s i t t i g : a lot has changed over the last ive to ten years. in the past, the parcel market was considered to be rather diicult, but it has become a growth driver capable of compensating for the general decline on the letter mail market thanks to ecommerce. his development has opened up new perspec tives for national postal companies, and has also served as the basis for many ipos in this sector. he crucial task for postal companies in the mail business is to manage decreasing delivery volumes primarily on the basis of more eicient processes, innovations and greater regulatory lexibility. his situation will con tinue in the years ahead. what does this mean for the parcel segment? t o b i a s s i t t i g : regulation is a major issue in the mail sector and one of the decisive factors impacting proitability and future viability. he parcel business is fundamentally diferent and more complex in some ways, and is char acterised by growth and a dynamic competitive environment. traditional postal companies can exploit their competitive advantages such as their longstanding presence on the market, high brand recognition and a network evolving over many years. hese strong factors are the basis for standing out from the crowd. the “digital revolution” signiﬁcantly impacts communication logistics. how is the postal services market changing in this respect? t o b i a s s i t t i g : here is a beautiful saying that everything that can be digitised will in fact be digitised. it remains to be seen what we will be let with, and we will be forced to rethink many things in the longterm. hybrid delivery is a must, and good it systems are a necessity for the parcel business. in response to competition and the digital revolution, there is actually nothing else one can do except to ensure an attractive service quality and priceperformance ratio and try to stay lexible and adaptive in order to retain as much business as possible. from an investor’s perspective, would you say that postal services are an interesting market? t o b i a s s i t t i g : in principle, yes. he sector achieves good margins and cash lows and is oriented towards distributing solid dividends. however, the transformation of the postal business will continue. it is essential for postal companies to recognise the importance of not resting on their laurels.
ten years on the stock market a u s t r i a n p o s t m a g a z i n e 2 0 1 6 56 ten years on the stock market – dividends delivered in time stability, a solid earnings development and a reliable dividend policy are the key objectives of austrian post, and will remain the decisive criteria underlying its corporate policy in 2017. in addition, a sound set of values ensures sustainable business management and creates the basis for its successful, long-term development, which has been taking place since the ipo in 2006. austrian post has shown an outstanding performance in the relevant sustainability rankings which are playing a pivotal role for a growing number of investors. all this and the reliable payment of an annual dividend which has signiicantly increased over the past ten years conirm that austrian post is pursuing the right strategy.
57 s h a r e h o l d e r s share price and total shareholder return 2006–2016 300 % 250 % 200 % 150 % 100 % 50 % 0 % 19.00 eur 31.89 eur 30/05/2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 31/12/2016 total shareholder return +164.2 % austrian post + 67.8 % eurostoxx transportation +19.5 % atx – 30.0 % may 31, 2006 marked the initial public ofering of austrian post on the vienna stock exchange, with a 49 % stake acquired by investors. a stateowned enterprise be came a publicly traded company. at that time, austrian post was only the third listed european postal service provider in addition to its german and dutch counterparts. in the meantime, many other postal companies have followed suit. he last ten years have been characterised by turbulence on international inancial markets, leading to many adjust ments in austrian post’s business operations. nevertheless, the post share has always remained solid, predictable and reliable. — not only an excellent start here was an enormous demand for austrian post shares at its ipo in 2006. a total of 34,300,33 shares were issued, and it was oversubscribed eightfold. more than half of the eligible individuals took part in the employee participation programme. about 5.4 % of the shares were assigned to austrian post employees. he tenth anniver sary of the post share represents a tenyear success story on the stock market. ebit has risen from eur 123m to eur 202m in this period, comprising a rise of 64 %. he dividend of eur 1.00 per share in 2006 has risen to eur 2.00 for 2016.1 he company’s core business has been subject to sig niicant changes over the last ten years. addressed letter and direct mail has declined by close to 25 % due to the ongoing trend of esubstitution. in contrast, driven by the boom in online retail sales, austrian post’s parcel volumes have in creased more than 70 % in this tenyear period, reaching a level of about 81m parcels in 2016. moreover, there has been a continuous improvement in delivery quality. he irsttime delivery success rate equals 92 %, compared to 85 % back in 2006. he post share has had a convincing track record in its tenyear history, even against the backdrop of turbulent inancial markets. he post share hit rock bottom one year ater the height of the inancial crisis, and was traded at eur 18.00 per share on september 8, 2009, thus emerg ing out of the crisis in better shape compared to the stock market as a whole. on april 3, 2015, the share price rose to its alltime high of eur 46.99. he post share was traded at eur 31.89 on december 30, 2016, comprising a rise of 67.8 % from the issue price of eur 19.00 on may 30, 2006. he total shareholder return of 164.2 % as at the end of 2016 relects the stable performance and consistently upward trend of the share in the medium and longterm, unde terred by shortterm turbulences. 1 proposal to the annual general meeting on april 20, 2017
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 58 — reliable and trans- — austrian post sends parent partner a clear message austrian post is not only reliable in its role as a service provider. he principles of reliability and transparency also mirrors its capital market positioning. he post share is one of the most attractive dividend stocks on the vienna stock exchange, and has absolutely no reason to fear international comparison. at the annual general meeting scheduled for april 20, 2017, the management board will propose distribution of a dividend amounting to eur 135.1m or eur 2.00 per share. his corresponds to a dividend yield of 6.3 % based on the share price at the end of 2016. austrian post has always attached particular impor tance to communicating with its institutional and private investors, as well as maintaining intensive contact with market researchers and analysts. about 200 meetings took place in 2016 in which austrian post engaged in a dialogue with these stakeholders and provided detailed information about the company’s development, strategic orientation, key performance indicators and objectives. over the entire tenyear period since the ipo, the investor relations team of austrian post spent more than 300 days at investor confer ences and roadshows, oten together with the members of the management board. in addition, eleven annual general meetings were held in order to maintain contact with share holders and the inancial community. he corporate values of austrian post not only refers to customer orientation, communication and appreciation but also to the core issues of proitability and sustainability, thus sending out a clear message. his is because proitabili ty and sustainability are actually two sides of the same coin. he strategic orientation based on the corporate val ues in the mission statement applying to the entire austrian post group focuses equally on economic as well as employee and customerrelated, social and ecological aspects. hey include safeguarding the supply of postal services and social commitment, promoting employees, measures to ensure the maximum conservation of natural resources as well as the goals of sustainable proitability and value en hancement. all these cornerstones of austrian post’s set of values are closely interrelated. his is demonstrated by the outstanding sustainability ratings and awards austrian post has been granted for years. in april 2016, the company was given the “sustainability award for logistics” in honour of its projects, “he green world of yellowbranded post – the model region emobility post” and “green vienna 2016”. rating agencies such as oekom research and vigeo pos itively evaluated the activities of austrian post once again in 2016, and the company received the best possible assess ment of “aaa” in the msci rating. he renewed acceptance of the post share for listing in the vönix sustainability in dex of the vienna stock exchange for the period 2016–2017 also conirms the fact that austrian post operates in a sus tainable manner from a capital market perspective. many investors now attach greater importance to such indicators in their investment decisions. austrian post is on the right track, moving ahead together with them towards an eco nomically and ecologically sustainable future. long-term and sustainable “we make our investment decisions on the basis of economic and ecological sustainability. for us a long-term mind- set is essential, and the same should apply to the company we invest in. austrian post fulils all our criteria for sustainable investments.“ wolfgang pinner head of sustainable & responsible investment, raiffeisen capital management
four key elements, one strategy 59 s h a r e h o l d e r s four key elements, one strategy. how continuity and reliability lead to a sustainable future. stability and modernisation, predictability and innovative strength: does one exclude the other? do i have to decide against change if conservative thinking gives me security? solid and obvious “it is an obvious step to invest in a inancially sound and highly adaptable company which is an integral part of my everyday life.” christian redl, private shareholder & branch manager, 1100 vienna stability and innovation “no company can ignore the need to be innovative. however, stability and down-to-earthness are important for my investment decisions. post shares are an interesting investment for me because they combine all these qualities. last but not least, this is due to the dividends, which are based on the current perfor- mance and not on future models.” arnold prentl private shareholder, engerwitzdorf there are many reasons for an investor to invest in the austrian post share. continuity and reliability of a company creates a feeling of certainty – in a day and age which does not always seem to give people security. prudence is considered by many shareholders to be a particular strength, especially in an economic environment characterised by major challenges. a proven business model generating solid cash lows combined with a conservative balance sheet structure, high level of cash and cash equivalents and low amount of liabilities serves as the basis for attractive dividends. this involves the ambitious goal of dis- tributing an annual dividend equalling at least 75 % of the group net proit. in 2010, austrian post deined its four core strategies laying out the long- term direction of the company. they ensure a clear and reliable presence in a business environment under consid- erable pressure to change.
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 60 key elements of the strategy 1 . d e f e n d i n g m a r k e t l e a d e r s h i p i n t h e c o r e b u s i n e s s 4 . 2 . c u s t o m e r o r i e n tat i o n a n d i n n o v at i o n p r o f i ta b l e g r o w t h i n s e l e c t e d m a r k e t s 3 . e n h a n c i n g e f f i c i e n c y a n d o p t i m i s i n g t h e c o s t s t r u c t u r e — strength 1. austrian post customers appreciate the high service quality of its mail and parcel delivery. close to 4.5m austrian households and companies rely on the delivery staff of about 9,100 people. together their transport routes cover a total distance each day equivalent to travelling around the world seven times over – by car, moped, bike or on foot. new services are constantly being added, such as 24/7 service and smart phone applications. letter mail volumes continue to decline, in contrast to intensii ed competition in the fast-growing parcel segment. austrian post is defending its market leadership in the core business. it not only keeps its high level of service but keeps in tune with the times. — know-how — cost efficiency — customer benefit 2. 4. 3. potential growth opportunities are identii ed and exploited with a focus on clearly dei ned markets and sup- ported by the company’s compre- hensive know-how. in addition to its core market, austrian post pursues this strategy in markets in which it achieves a good competitive position. the focus is clearly on innovative online solutions and on the growing national and transnational mail order and logistics business. austrian post has long relied on international links and logistics networks to ensure a far-reaching service network and thus remain faithful to the principle of cus- tomer proximity. neighbouring markets in south east and eastern europe proi t from austrian post’s know-how. being proi table means continuous- ly keeping an eye on all costs and making the best use of existing leeway to promote efi ciency. state-of-the-art digital and automation technologies are being used everywhere in logistics processes. modern management of transport l ows and the l ow of goods holds considerable potential to increase speed, expand the service level and simultaneously optimise staff and process costs. efi ciency goes hand in hand with the quality of results. in this case stability is an important target. for example, this is rel ected in operating earnings, which in 2016 solidly matched the prior-year business results. one person or company sends out mail, another receives it. the focus is on both players when it comes to enhancing customer benei t on the basis of new and at the same time reliable solutions. the motivated and productive employees of austrian post are important players in this regard. familiarity with the austrian post brand lives not least from the reliability of its services. in addition to online services and saturday delivery, an increased availability of postal services on the basis of pick-up stations, self-service terminals and post pick-up boxes and flexiboxes, customers now also have the new “packet” product group at their disposal for the lightweight items mailed by customers.
responsibility 61 r e s p o n s i b i l i t y the key to sustainability 66 e n v i r o n m e n t a l p r o t e c t i o n w h e n o n t h e m o v e 62 c o m m i t t e d b e y o n d t h e c o m p a n y ’ s b o u n d a r i e s
committed beyond the company's boundaries a u s t r i a n p o s t m a g a z i n e 2 0 1 6 62 committed beyond the company’s boundaries as one of austria’s lagship companies, austrian post not only plays an important role in the economy but also in society. austrian post also takes this responsibility very seriously, linking this commitment to its core business in a mean- ingful way. austrian post can look at its track record and honestly say that …
r e s p o n s i b i l i t y 63 a d v e r t i s i n g b a n n e r o f t h e p o s ta l pa r t n e r o f f i c e at v i e n n a a i r p o r t comprehensive infrastructure 3,500 postal service points thereof 450 branch ofices 1,350 postal partners 110 omv petrol stations 1,600 hermes parcel shops … the universal service obligation has been fulfilled as a provider of universal postal services, austrian post is responsible for the reliable, nationwide supply of postal services in austria, as well as maintaining and safe guarding the country’s communications infrastructure. austrian post is in a position to ofer its services throughout austria, thanks to its delivery staf of 9,100 people and a total of 3,500 postal service points. he postal partner concept makes a decisive contribution to its suc cess. postal partner oices include grocery stores and phar macies, which ofer postal services in addition to their own goods and service ofering. he postal partner network is steadily expanding. in 2016, the network was complement ed by a very special postal service point. he one set up at vienna airport in october is the very irst postal partner in austria featuring a selfservice zone, where customers can take advantage of postal services on an around the clock basis. austrian post has responded to the changing life style of its customers shaped by increasing digitalisation by steadily expanding its existing online services or regularly launching new online solutions, enabling them to have 24/7 access to postal services to take care of their postal business. … it has increased its economic footprint austrian post has also become increasingly impor tant with respect to the overall economic development of the country. his was conirmed by a recent study carried out by the economica institute for economic research, which examined the macroeconomic impact of austrian post for the second time in 2016. he conclusion was that austrian post’s economic footprint has expanded. in other words, the contribution austrian post makes to the domes tic economy every year grew once again compared to the last study conducted in 2012. austrian post is faced with the necessity of reconcil ing the conlicting demands between its universal service obligation and a highly dynamic and intensive competitive environment, above all due to increasing digitalisation, growing competition in the postal sector and developments in society such as demographic change. against this back drop, the study shows that austrian post is on the right track based on its chosen path of restructuring and mod ernisation. he total value creation of austrian post in 2015 amounted to eur 2.70 bn, of which eur 1.67 bn was gen erated in austria. his comprises a rise of 15.5 % from the
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 64 comparable igure in 2012. austrian post’s share of austria’s gdp also climbed from 0.51 % in 2012 to 0.55 % in 2015. … it achieves more together however, austrian post not only increased its own value creation, but also its indirect value added from out sourcing (+151 %) and induced value added (+49 %). each euro spent by austrian post generates additional value add ed in austria to the amount of eur 1.1 (2012: 96 cents). did you know that … … the “post network” accounts for every 181st euro generated in austria? about 0.47 % of the entire working population in austria works for austrian post on the basis of its approxi mately 19,500 employees. another 8,800 jobs are either cre ated or secured along the value chain. his means that every 200th job in austria can be attributed to austrian post. in its role as one of austria’s lagship companies, austrian post believes it has the responsibility to apply its core expertise – the nationwide delivery of mail items to help those who are disadvantaged and need support. christmas for every one – partner- ships for a good cause in cooperation with the austrian workers’ samaritan federation, austrian post once again did its share in 2016 to ensure that if possible, no needy child in austria would have to celebrate christmas without getting a present. anyone sending a present to a child could order a prefranked par cel stamp online free of charge, stick it on the git parcel and drop it of at a postal service point. austrian post took care of the rest, sending the parcels to collection centres of the workers’ samaritan federation. from there, fulltime and voluntary samaritans personally brought the parcels to children in social welfare institutions and disadvantaged families. austrian post along with the hungarian subsidiary transolex hungary were once again involved in the pro ject “christmas in the shoebox” designed to assist needy children in eastern europe. he “ö3 wundertüte” charity campaign, which austrian post has supported for more than ten years, resulted in donations of eur 592,950 for the “light into the darkness” emergency aid fund and caritas. wanted: most popular fundraising letter of 2016 fundraising letters rank among the most successful ways to solicit donations in austria. austrian post searched for the most popular fundraising letter of the year in collaboration with the austrian fundraising association the ngo shortlist was published in the advertising envelope kuvert. more than 18,000 austrians responded to austrian post’s request and voted for their favourite fundraising letter. who managed a spot on the winner’s podium? the winner was sos children’s villages, which was awarded a postage credit balance of eur 12,000 for its next donation mailing. debra austria came in second, followed by caritas & du. u n i c e f s p e c i a l s ta m p in 2016, the united nations children’s fund (unicef) celebrated its 70th anniversary. austrian post has been a partner of unicef for almost as long, and has supported the organisation’s annual sales of unicef christmas cards as well as by issuing commemorative stamps (1949 and 1996). naturally austrian post used the occasion of unicef’s 70th birthday to issue another special stamp with a nominal value of 68 cents plus a surcharge of eur 2.32 as a donation for unicef’s educational projects.
65 r e s p o n s i b i l i t y … it invests in the next generation did you know that … … austrian post is also culturally involved? the cultural associations of austrian post with about 400 members make good music to ensure a good atmosphere. in 2016, this occurred, for example, at the vienna opera ball, where the pt art orchestra, formerly postmusik linz, impressed the guests. the seven post bands and two choirs are inancially supported by austrian post and the post.sozial association. austrian post is not only committed to helping socially disadvantaged people but also children in general. various projects were initiated or support was provided to existing initiatives related to the company’s core competence. in order to acquaint children with austrian post in a playful manner, the company developed socalled “mini post stations”, where children can imitate what goes on in a real post oice. he activities included sorting, stamping, drawing, packing, transporting and shipping. kindergartens could take part in a prize competition to win three such stations along with eur 1,000 for the kinder garten. for this purpose, the children were asked to submit stamps they had designed themselves focusing on the topic of the post oice. he idea was well received. hree winners were selected from more than 1,000 kindergarten groups. each year austrian post sends about 3,000 “school boxes” to primary schools for somewhat older children. in line with the campaign “austrian post at school”, the appealingly de signed teaching materials aim to stimulate pupils to read and write, as well as to give them a better understanding of what austrian post does. austrian post also took part in daughter’s day once again. his initiative wants to motivate girls to select pro fessions requiring training which are new to them or in some cases unusual before they make their career choic es. children’s business week serves as the basis for pupils to gain an insight into how diferent companies operate. austrian post took part in this initiative for the ith time. at a “post workshop”, children playfully and vividly expe rienced the path a letter or parcel takes from the time it is dropped of until the time it is delivered. he children enthusiastically blew into the post horn and designed their own postcards.
environmental protection when on the move a u s t r i a n p o s t m a g a z i n e 2 0 1 6 66 environmental protection when on the move
67 r e s p o n s i b i l i t y about six billion mail items per year. a delivery staf of 9,100 people, who circle the globe seven times a day in their delivery vehicles, supported by six letter and seven parcel logistics centres, 264 delivery bases and 1,792 postal service points. a lot of energy is required to enable austrian post to fulil its service promise to its customers anew every single day. in order to minimise the environmental impact of its business operations, austrian post implements a series of measures, demonstrating that logistics and avoiding greenhouse gas emissions are by no means mutually exclusive but go hand in hand at austrian post.
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 68 — green delivery as the country’s largest logistics service provider, austrian post delivers mail items to every address through out the entire country. post employees are ot en on the road, on foot and by bike, but also use mopeds, cars and lorries. for this reason, austrian post goes to great lengths to ensure that its activities are as environmentally compatible as possible. h e company attaches particular importance to reducing climatechanging greenhouse gases such as co2. austrian post rises to the challenge and reduces its ecolog ical footprint each year by resolutely integrating environ mental protection activities in its core business. h e co2 neutral delivery initiative is at the core of the company’s ef orts. it focuses on the greening of logistics operations and consistent energy savings, with the underlying objective of avoiding co2. austrian post’s delivery opera- tions are on the move based on an e-xcellent e-vehicle fleet 1,387 e-vehicles, including 1,053 single track/special purpose vehicles and 334 electric-powered cars the co2 neutral delivery initiative is based on three pillars: 1. enhancing efi ciency in core processes e.g. by renovating buildings and a modern, low- emission vehicle l eet 2. intensii ed use of alternative technologies e.g. expansion of the e-vehicle l eet and photovoltaic facilities 3. compensation for co2 emissions which cannot be avoided the result: all mail items in austria are delivered in a co2 neutral manner! this is coni rmed each year by tüv austria. co2 neutral delivery initiative the co2 neutral delivery initiative is also essential as a means of raising the environmental awareness of employees, customers and other stakeholder groups. for example, interested business customers receive an annual certiﬁ cate from austrian post conﬁ rming the co2 neutral delivery of all mail items in the previous year. austrian post issued about 600 such certiﬁ cates in 2016. moreover, more than 100 customers use the co2 neutrally delivered logo in their own commu- nications activities.
69 r e s p o n s i b i l i t y he environmental protection activities of austrian post have also had a positive efect on customer satisfaction. customers attach considerable importance to climate pro tection and co2 neutral delivery, and take a very favourable view of austrian post’s commitment. in 2016, customers gave austrian post even higher marks for its environmental activities than in the previous year. media coverage also sees the company’s environmental protection eforts in a posi tive light. — expansion of green procurement a mutually shared understanding of environmental protection and responsibility is also important to austrian post in selecting its business partners. for this reason, it res olutely demands compliance with environmental and social standards within the context of its code of conduct for suppliers as well as the vendor integrity check. he sourcing of energy, vehicles and paper are of im portance to austrian post and its core business. austrian post has derived all of its electricity from renewable energy sources since 2012, and focuses on low emission vehicles and alternative drive systems with respect to new purchases for its vehicle leet. austrian post also makes sure to source paper from sustainable sources. for example, all the paper used for the advertising envelope kuvert is certiied by the forest stewardship council (fsc). he company relies on regional structures. more than 90 % of austrian post’s 7,000 suppliers are based in austria. he regionality of the delivery chain has two advantages. for one thing, the shorter transport distances help protect the environment. moreover, two thirds of the company’s total purchasing volume are allocated to austrian compa nies. in this way, austrian post generates additional value creation in austria. — energy savings austrian post’s delivery staf can cover about 20 % of the delivery areas on foot or by using bicycles. he other delivery areas can only be reached by using motor vehicles. he challenge here is to ind solutions which are just as or almost as environmentally friendly. route planning and a modern vehicle leet are the key features of the company’s eforts. route planning is being optimised on an ongoing ba sis to avoid empty runs and ensure that vehicles are more consistently utilised to capacity. austrian post relies on modern vehicles in the lowest emission classes along with regular servicing as a means of optimising vehicle leet ef iciency. furthermore, austrian post increasingly focuses on alternative drive systems, once again expanding its evehi cle leet in 2016. for example, two iveco daily electric transporters were added to the leet in 2016. since the beginning of 2012 austrian post derives the electricity it needs exclusively from renewable energy sources. but this is not all. hanks to the energy generated by its two own photovoltaic plants, austrian post supplies its entire evehicle leet with electricity from solar energy. moreover, austrian post is striving to energetical ly optimise its building infrastructure. for this purpose, it consistently monitors energy consumption and is working on gradually replace the lighting systems in its logistics cen tres with led lighting solutions. in addition, the company began to implement measures in 2016 designed to exploit the energysaving potential identiied in the 2015 energy audit. his includes changing over to district heat and the installation of eicient heating and hot water heating sys tems. accordingly, austrian post has already succeeded in avoiding a large amount of co2 emissions. in a third step, austrian post compensates for unavoidable emissions by supporting national and international climate protection projects. he ecologicalisation of transport operations and re duction of energy consumption led to a signiicant decline in emissions. in 2010, austrian post already achieved the target set in 2007 of reducing co₂ emissions by 10 %, two years ahead of schedule. however, austrian post has not rested on its laurels. it also deined a further objective of decreasing its co₂ emissions (including external freight forwarders) by 20 % in the period 20102015. austrian post managed to cut emission levels by 21 %, surpassing its own performance target.
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 70 — outstanding services and certified manage- ment excellence 2016 sustainability award for logistics silver award for achieving a 75% carbon management proficiency score or higher and reducing emissions in line with the group’s progress 2016 presented to österreichishe post participant in the ipc environmental measurement and monitoring system (emms) programme since 2008. hertbert götz director marketing date: 01 october 2016 ipc environmental measurement and monitoring system the programme measures the postal sector’s progress to management proficiency and achieve emissions reductions. (emms) improve carbon h e corporate social responsibility (csr) activities of austrian post were awarded the “silver recognition level” of the ecovadis rating 2016. ecovadis is a sustainability assessment platform aiming to promote the environmental and social practices of companies within the supply chain based on csr performance monitoring and support i rms in improving their sustainability scorecard. austrian post is involved in international pro grammes such as “environmental measurement and monitoring system” (emms) of the international post corporation (ipc). for this reason, it was given the ipc silver award. in november 2016, austrian post launched its i rst environmental management system certii ed in accordance with iso 14001:2015 at its letter mail centre vienna. h e priorities include reducing energy consumption and waste volumes. h e improvement of its environmental manage ment system is supported by the annual validation of tüv austria. austrian post is the winner of the i t h sustainability award for logistics. in april 2016, the company was given an award for its projects “h e green world of yellowbrand ed post – the model region emobility post” and “green vienna 2016”. h e i rst project involved the expansion of the austrian post l eet to 1,300 epowered vehicles by the end of 2016, whereas the latter initiative is designed to ensure that letters and direct mail to private customers in vienna are delivered only via electric vehicles or by foot. austrian solar prize 2016 austrian post received the austrian solar prize 2016 in the category “transportation with renewable energy” for the implementation of the “model region emobility post” and the “green vienna” initiative. daphne environmental technology award daphne umwelttechnologiepreis austrian post’s project “green vienna 2016” was nominated for the daphne environmental technology award and honoured as a daphne excellent project.
staff 71 s ta f f focus on the team 72 e n s u r i n g f u t u r e s u c c e s s : a u s t r i a n p o s t i s o p e n t o n e w i d e a s a n d r e l i e s o n e v e r y i n d i v i d u a l e m p l o y e e 77 a g o o d f e e l i n g a t w o r k
ensuring future success a u s t r i a n p o s t m a g a z i n e 2 0 1 6 72 ensuring future success: austrian post is open to new ideas and relies on every individual employee a company is only as good as its employees. h is particularly applies to a service provider such as austrian post. it recognises the innate potential of its heterogeneous staf and knows how to leverage it, for example via the design thinking approach. austrian post benei ts from the creativity of its employees by trusting their strengths.
73 s ta f f the design thinking process at austrian post c o l l e c t d ata a n d p o o l r e s u lt s p r o b l e m — talk to me! what was your worst experience with austrian post? what bothers you when it comes to working with austrian post, and what wishes do you have? how was your last in teraction with austrian post? how did you feel? what did you think? what was special about it? within the context of a design thinking project, ten austrian post trainees fo cused on these and other questions and began a journey in the spring of 2016 to develop new ideas for parcel delivery. h ese questions made it clear that access to the de sign thinking process begins with the customer. h e focus is on empathising with, observing, understanding and ana lysing user requirements and experiences. customer needs and expectations are not ascertained by conducting surveys but in direct contact, making use of one’s own conscious ness and experiences as well as observations and interviews. talking is not only an important pillar of design thinking when it comes to identifying customer needs. from the company’s perspective, this approach also promotes the ex change of ideas and leads to new ideas and improvement suggestions. h e appeal of design thinking and humancentred design results from new forms of creative cooperation. in line with the motto, “wisdom of the collective”, coopera tion emerges as the basis for a new awareness of work. h e approaches and viewpoints of various minds are linked to each other, bundled and optimised for the benei t of the cus tomer and the company. accordingly, the team consisting of various business areas, disciplines and ideally custom ers and users as well comprises the cornerstone of design thinking. ingrained thought patterns are called into ques tion by fellow employees from other areas of the compa ny. horizons are inevitably broadened as soon as someone
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 74 good to know design thinking and human-centered design were developed at stanford university by professor david m. kelley (founder of ideo) more than ten years ago. this approach to deal with complex problems and focused user orientation has successively taken root in the business community. large technology companies in the usa have routinely worked with design thinking for a long time, whereas austrian i rms are just getting started. established companies face new challenges in times of globalisation and digitalisa- tion. in the search for innovation accelerators, design thinking seems to be the solution enabling the develop- ment of new products and services that inspire customers. “design thinking is a method that works for us. however, conﬁ dence in every individual and one’s own creativity makes a much greater contribution.” s e r g e j a m i r n i k , a u s t r i a n p o s t g at h e r i d e a s , p r i o r i t i s e , a n d d e v e l o p p o s e t h e r i g h t q u e s t i o n s says, “explain this to me once again. i do not understand how it works.” by collaborating with each other, new ways of thinking and mental horizons arise, transcending pro fessional competence and hierarchical boundaries. spaces emerge in which convincing innovations for dif erent areas thrive. h e multitude of perspectives quickly lead to better results within the context of the design thinking process. inventive power and imaginativeness arise from the team and are by no means an individual achievement. h e trainees of austrian post were assigned to dif ferent groups and assigned various tasks within the context of the design thinking project. under the leadership of a design thinking expert, they interviewed senders of mail items and compiled information on customer experiences. h is was done by putting themselves in customer shoes and using austrian post services themselves. h ey subsequently compared the data to relevant future trends and processed their research results to generate initial new ideas. “it is not always a matter of i nding something which is complete ly new”, explains sergeja mirnik, who conceives and heads all design thinking projects at austrian post. “h e focus is on i nding solutions which are convincing from a cus tomer and company perspective, and which will work on the marketplace. for example, existing approaches may be recombined, or gradually upgraded. from a customer’s perspective, innovation comprises an improvement in the customer experience or in service use, every simplii cation and everything which makes his life easier.” h e trainees developed 28 ideas within two and a half days, put four of them into concrete terms and conceived two solutions on this basis. h ey presented both approaches – a platform on the issue of crowd delivery and an expansion of the post app – to the company’s top management.
75 s ta f f from the post’s real-life practice the team leader portal app project was launched in the course of the “teamwork 2018” programme. the objective of this design thinking process is a quicker and easier exchange between team leaders and area managers. in the meantime, the app has already been tested in four pilot areas, and the austrian- wide roll-out is scheduled to take place in 2017. the app encompasses all staff deployment issues such as presence and absence, work schedules, i lling in for others etc. the team leader processes the data directly on his mobile phone and can directly coordinate it with the area manager. the app was well received at the delivery bases where it was tested. its advantages include simple, quicker communication and fewer misunderstandings. s o l u t i o n — problems can be complicated, but not solutions issue of safety in parcel logistics. additional projects were initiated within the context of the talent management pro gramme and the executive academy. simplifying procedures, improving services and ex ploiting the advantages of new technologies are the solu tions for the parcel delivery of the future. letter distribution already took the same approach back in 2014. h e objective is to restructure the organisation within only four years. h e concept is entitled “teamwork 2018” and aims to set up smaller team structures and delegate more responsibility to individual employees. each team consists of ten to twelve employees and a team leader who continues to be involved in daytoday business in addition to his leadership role. h e number of team members remains manageable and en ables closer proximity to the delivery staf . for this reason, innovations, upgrades, further developments and infor mation on everyday tasks can be directly communicated. impressive improvements were already achieved in the i rst two years of the “teamwork 2018” initiative. in 2016, letter mail distribution began to improve the interaction between team leaders and area managers based on the design think ing method. each of the improvements targets the same goal, namely to ensure ei cient mail distribution. austrian post also makes use of design thinking to solve problems or develop innovations in other areas, for example the parcel subsidiary in croatia or tackling the — corporate culture as an incubator of new ideas h e corporate and leadership culture must be further developed in order to ef ectively accept the idea that there is a “we” i.e. exploiting the intelligence of all post employ ees. h e executive academy of austrian post launched in 2012 is dedicated to these tasks. its objective is to support executives and key employees to implement the leadership guidelines with individually adapted trainings. h e training module “attitude and mentality of leadership” started with an experienceoriented approach to promote more individ ual responsibility and proactive behaviour. h e participants were physically and mentally challenged by the asian mar tial arts. h e of ering of the cee academy for the subsidiar ies in central and eastern europe also focuses on the lead ership culture, and is designed to facilitate crossborder knowledge transfer. h e participants exchange ideas and develop a mutually shared understanding of austrian post’s leadership culture.
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 76 austrian post is also actively involved in further education and professional development to ensure that good ideas will thrive in the future as well. h e talent management programme was launched for the benei t of the many promising employees from austria and the in ternational subsidiaries. at er one and a half years, twelve graduates successfully completed their professional devel opment ef orts at the iecdbled school of management in slovenia. austrian post uses this programme to train its junior managers. h e focus is on the next step up the career ladder. in contrast, apprentices are at the very beginning of their ca reers. austrian post is currently training a total of 81 appren tices, and plans to accept another 30 in 2017. it shouldn’t be so dii cult for the company to attract apprentices. at er all, austrian post was ranked number one among 30 compa nies in a survey conducted by the independent consulting company uniforce and was also given the placetoperform quality label for a training enterprise. h e questionnaire developed by the institute for economic psychology at the university of vienna focused on the following criteria: working tasks, the social and working environment, learn ings aspects as well as satisfaction and motivation. h e apparently high level of approval of the youngest generation in the company is cause for optimism with re spect to the company’s future. austrian post will continue to successfully create new ideas in the world of tomorrow with people who are curious, inspire each other and enjoy learning together.
a good feeling at work 77 s ta f f a good feeling at work p e o p l e w h o a a r e s a t i s f i e d p e r f o r m companies competing for the best talents want to distinguish themselves and be attractive to existing and potential employees. hat is why they are committed to ensuring the well-being of their employees in addition to professional competence. a staf member who is doing well can perform better and stays with the company. another factor is important for austrian post. most of its employees are in direct contact with customers and represent the company to exter- nal stakeholders. with this in mind, the level of appreciation for employees is very high in the company, and there is a wide-ranging ofering for career advancement and professional development. better
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 78 occupational f s a e t y here are situations in which the desire for enhanced safety is apparent im mediately and measures designed to achieve this target make perfect sense. he delivery staf at austrian post were the ones who brought up the issue of selfde fence. hese employees wanted to feel safer on their delivery routes. he human resources department gladly accommodated this wish and initiated a pilot event with a company specialising in selfdefence courses for women. 18 members of the delivery staf practiced basic selfdefence techniques with a trainer who works for the special unit wega of the austrian police force. he objective of the training is to ward of an attacker as quickly as possible. he event held in september 2016 was so positively received that a second course was organised in november. hanks to what they learned, the mail carriers now make their way to customers with a more secure feeling. each day the delivery route of the mail carrier takes him from one house to the next. while on the move he collects various messages for the best friend human beings have. he nose of a dog is so sensitive that they directly sense dif ferent smells from other houses and sometimes the scents of other dogs. for this reason, confronting a dog may turn into a nightmare if the mail carrier comes unprepared. but anyone who understands the nature of dogs knows how to deal with such a situation. his is the underlying reason explaining why austrian post regularly trains its delivery staf in how to properly handle our fourlegged friends. for this purpose, austrian post concluded a partnership with the pet retailer fressnapf. within the context of this collaboration, the experts for animal nutrition put dog treats at the disposal of austrian post which the mail carriers can give to dogs in their delivery areas. fortunately, the number of post employ ees bitten by dogs signiicantly declined from 2015 to 2016, from 105 to 87. job f i t n e s s he delivery staf are on their feet all day long. in contrast, oice work involves long periods of sitting and little physical activity. accordingly, austrian post launched a campaign in 2016 entitled “fit for the oice” in order to prevent painful muscle tension or back problems. 51 exercises which can be done while sitting or standing and in an employee’s everyday business clothing were pre pared together with the back training instructor andy fumolo. hese exercises done by employees of austrian post were captured on video and can be down loaded on the company’s intranet. other healthrelated measures focusing on the wellbeing of austrian post employees are being implemented. for example, the company ofers a stress
79 s ta f f management check to its delivery staf accompanied by a followup consulta tion designed to provide personal health tips. measurements and consulting are carried out by the stress expert prof. dr. wolfgang lalouschek. furthermore, austrian post began conducting an indepth evaluation of psychological stress. representative groups of employees were formed for diferent types of work, for example at the counter in branch oices, or delivering mail on foot or using a moped. his was designed to identify the psychological stress factors impact ing each speciic group. improvement measures will follow the ongoing evalua tion. in addition, in the spirit of promoting the physical itness of its employees, austrian post supports their participation in various running events such as the vienna city marathon in cooperation with the post.sozial association. he num ber of post staf taking part in the 17 races in 2016 rose to 3,902 runners, an increase of 55 compared to the previous year. saving time is the top priority of another ofering. in this case, this is a particularly important matter. first responders dispensing irst aid gain precious minutes of time during their rescue operations. in 2016, the company began training all executives and the entire management board to be irst aiders as a means of underlining the importance of inhouse irst aiders. he underlying purpose is to motivate more employees than the legally stipulated minimum to undergo training. 650 employees took part in irst aid training in 2016. working l i f e he life of every employee consists of his or her family and job. one of austrian post’s objectives is to enable a proper worklife balance. in 2016, austrian post was once again granted the “career and family audit” mark of qual ity and was certiied for another three years. his award is in recognition of a cor porate culture which continuously stands for and improves the compatibility of a person’s family responsibilities and professional duties. he focus of the reaudit was on the worklife balance for the purpose of maintaining employability. moreover, austrian post participated in the “companies for families” drive. launched by the federal ministry for families and youth, it ofers a net working platform for companies and municipalities. hose dedicated to a fami lyfriendly human resources policy will ind further inspiration here. in this way, the network supports ongoing corporate improvement measures to promote the compatibility of career and family. 63 children of austrian post employees took advantage of pleasant holi days in the summer of 2016 booked with the joint welfare association post.sozial. eleven favourablypriced ofers with or without accommodations were available. he price of the summer camps was 50–75 % cheaper via post.sozial, which serves as a centralised platform bundling the numerous social services provided by austrian post on behalf of its employees and their family members. he ofer ing includes inancial assistance in case of emergency and lowerpriced tickets for cultural and sporting events.
a u s t r i a n p o s t m a g a z i n e 2 0 1 6 80 n e w w o r l d o f w o r k i n g : t h e n e w c o r p o r at e h e a d q u a r t e r s “ p o s t a m r o c h u s ” c u r r e n t ly b e i n g b u i lt office s p a c e employee workplaces make an important contribution to the working at mosphere and people’s ability to unfold their skills. a favourable working en vironment requires a reasonable supply of fresh air, a lot of natural light, good sound insulation and suicient space between the individual workstations. all this has been taken into account in the new corporate headquarters of austrian post. a work environment is being created which is as multifaceted as the business activities of austrian post. he room design relects an open oice concept. retreat areas for concentrated individual work as well as communica tion rooms for meetings are available. here will also be areas for informal dis cussions and relaxation. accordingly, the entire oice building will be turned into a versatile, multipurpose environment. furthermore, the new headquarters will encompass about 5,500 m² of shopping and restaurant space. he largescale “post am rochus” construction project is proceeding on time and within budget. he toppingout ceremony was held in october 2016. austrian post will begin moving into its new premises starting in the fall of 2017.
facts & figures 81 f a c t s & f i g u r e s keeping well informed 82 a u s t r i a n p o s t a t a g l a n c e p a r c e l & l o g i s t i c s 85 84 m a i l & b r a n c h n e t w o r k 86 n u m b e r o n e i n a u s t r i a
austrian post at a glance a u s t r i a n p o s t m a g a z i n e 2 0 1 6 82 austrian post at a glance austrian post is the leading logistics and postal services provider in austria. its main business activities include the transport and delivery of letters, direct mail items, print media and parcels as well as providing various logistics solutions. in addition to postal service, the branch network of austrian post ofers high-quality banking and telecommuni- cations products and services to its customers. moreover, austrian post is also represented in eleven other international markets, particularly in the parcel and logistics growth segment. — strategic cornerstones four core strategies have successfully guided austrian post since 2010: 1. defending market leadership in the core business 2. profitable growth in selected markets 3. enhancing efficiency and optimising the cost structure 4. customer orientation and innovation the focus of the company’s strategic activities is the consistent orientation to the needs of customers in order to further strengthen its market leadership position in its core business and exploit opportunities in growth markets at the same time. strict cost discipline is continuously given top priority in all the company’s activities on enhancing eficiency in all processes, also in the future. company data 106 eur m in investments 21,700 employees 2 eur bn in revenue
83 f a c t s & f i g u r e s germany poland austria croatia slovakia hungary romania ¹ serbia bulgaria bosnia and herzegovina montenegro turkey — reasons to invest in austrian post shares (investment story): 1. proven business model 2. strong balance sheet and solid cash flow 3. attractive dividend policy 4. continuity and reliability 1 2 assets and liabilities of postmaster s.r.l. are classiied as held for sale as at the balance sheet date of december 31, 2016. proposal to the annual general meeting on april 20, 2017 the post share on the stock market austrian post has been listed on the vienna stock exchange for ten years, with a great deal of success. +164.2 % total shareholder return since the ipo 2.00 eur dividende per share for 2016 2 (dividend yield of 6.3%)
mail & branch network a u s t r i a n p o s t m a g a z i n e 2 0 1 6 84 — range of services: – letter mail – direct mail – media post – branch network services mail & branch network company data 95.7% of letters are delivered on the next working day 3,500 postal service points throughout austria 334 self-service zones with 24/7 services the core business of the mail & branch network division ranges from the collection, sorting and delivery of letters, di- rect mail items and media post to the sale of telecommuni- cations products as well as of inancial services. in addition, austrian post offers various online services to its customers. the service portfolio is complemented by new services for business and advertising mail, such as address and data management, mailroom management, intelligent scanning and response management. each year austrian post delivers 790 million letters, 590 million addressed direct mail items, 3.3 billion unaddressed direct mail items, 370 million print media and 290 million regional media. with 454 branch ofices and 1,338 postal partners, austrian post operates the largest private custom- er network in the country. including hermes parcel shops and omv petrol stations, customers can take advantage of postal services offered at 3,500 postal service points throughout austria. in addition, the offering of self-service zones is being steadily expanded. at the end of 2016, cus- tomers already had 334 self-service zones at their disposal. shipment volumes in austria – addressed mail items in millions 2,001 2,009 1,934 1,820 1,748 2012 2013 2014 2015 2016 shipment volumes in austria – unaddressed mail items in millions 3,822 3,659 3,703 3,777 3,616 2012 2013 2014 2015 2016
parcel & logistics 85 f a c t s & f i g u r e s — range of services: – parcels – value-added logistics services – fulfilment – value logistics parcel & logistics company data 91.7% success in delivering parcels on the ﬁrst attempt 18,085 post pick-up boxes 44.5 % market share in austria the parcel & logistics division offers its services in nine european countries. in international markets, this consist- ently takes place via the company’s own subsidiaries. the main business of the division is transporting parcels and express mail service (ems) items for private and business customers. austrian post delivered about 81 million parcels and ems items on its domestic market of austria in 2016. accordingly, it is the leading service provider for the delivery of mail order and private customer parcels, offering nation- wide delivery of the highest quality. in recent years, austrian post has further expanded its competencies along the entire logistics value chain, and is now successfully providing a broad range of value-added services. accordingly, austrian post offers customised fulilment solutions such as warehousing, commissioning, returns management and webshop logistics, as well as the transport of valuables and cash. shipment volumes in austria in millions 65 70 74 80 81 2012 2013 2014 2015 2016 shipment volumes in cee/see 1 in millions 22 24 19 27 29 2012 2013 2014 2015 2016 1 exclusive aras kargo a.s. (turkey)
number one in austria a u s t r i a n p o s t m a g a z i n e 2 0 1 6 86 number one in austria he company makes an important contribution to safeguarding the nation’s communications and logistics infrastructure based on its nationwide and reliable supply of high quality postal services on behalf of the austrian population and economy. he following facts show how important austrian post is for the austrian economy: austrian post accounts for about 0.55 % of gdp and about 0.47 % of the working popu lation is employed by the company. each year, austrian post delivers … … in austria via nationwide 790 81 million letters million parcels 15,300 letterboxes 6 1,792 mail and postal service 7 parcel logistics centres points 4.6 billion direct mail items/media post
87 f a c t s & f i g u r e s our business performance 2015 2016 change in % e a r n i n g s revenue revenue excl. trans-o-lex ebit ebit margin proit for the period c a s h f l o w gross cash low operating free cash low1 b a l a n c e s h e e t total assets equity liquidity (–)/net debt (+) s h a r e earnings per share dividend per share dividend yield total shareholder return eur m eur m eur m % eur m eur m eur m eur m eur m eur m eur eur % % 2,401.9 1,903.9 89.0 3.7 71.6 2,030.5 1,895.6 202.3 10.0 152.7 –15.5 – 0.4 > 100 – > 100 stable revenue development adjusted for trans-o-flex operating earnings (ebit) above the prior-year level 216.2 160.5² 223.6 156.8 3.4 –2.3 good basis for financing future investments and dividends 1,613.0 1,541.8 641.7 28.1 1.06 1.95 5.8 163.1 670.0 –25.7 2.26 2.003 6.3 164.2 –4.4 4.4 < –100 > 100 2.6 – – conservative balance sheet policy with strong cash position attractive dividend yield of 6.3 % 1 ² 3 free cash low before acquisitions/securities (before old/new corporate headquarters) excluding tax payments of eur 9.2m in connection with the sale of the old corporate headquarters proposal to the annual general meeting on april 20, 2017 infrastructure … … to 18,000 employees thereof 9,100 mail and parcel carriers 9,000 vehicles thereof 1,300 e-vehicles 4.4 million households and companies delivery services are provided … – in the highest quality as proven by customer surveys – quickly and reliably as demonstrated by the high level of delivery quality – in a co2 neutral manner as certified by tüv austria
contact and impressum a u s t r i a n p o s t m a g a z i n e 2 0 1 6 88 — contact österreichische post ag headquarters haidingergasse 1 1030 vienna t: +43 (0) 577 67 0 e: email@example.com i: www.post.at investor relations harald hagenauer t: +43 (0) 577 67 30401 f: +43 (0) 577 67 30409 e: firstname.lastname@example.org i: www.post.at/ir corporate communications manuela bruck t: +43 (0) 577 67 24099 f: +43 (0) 577 67 28039 e: email@example.com i: www.post.at/pr csr – sustainability daniel-sebastian mühlbach e: firstname.lastname@example.org i: www.post.at/co2neutral 1 for austria compliance judith pilles t: 0800 202 2241 e: email@example.com private customers post cutomer service t: 0800 010 1001 business customers t: 0800 212 2121 stamp collector’s service t: 0800 100 1971 i: www.philatelie.at austrian post online annual report 2016 i: www.post.at/gb2016/en if you want to know more about austrian post (annual reports, quarterly reports etc.), we would be happy to put you on our distribution list. please contact: t: +43 (0) 577 67 30401 e: firstname.lastname@example.org i: www.post.at/ir — imprint media owner and publisher: österreichische post ag, haidingergasse 1, 1030 vienna, austria, t: +43 (0) 57767-0, e: email@example.com, i: www.post.at, fn: 180219d, commercial court of vienna concept and design: berichtsmanufaktur gmbh, hamburg; project management, lectorate: berichtsmanufaktur gmbh, hamburg; austrian post, investor relations (barbara bauer, teresa sengschmid, anna vay) photos: ian ehm, werner streitfelder and christian stemper for austrian post; fotolia; schenker salvi weber/miss3 printing: av+astoria druckzentrum, vienna editorial deadline: march 8, 2017 for the sake of readability and the natural l ow of the text, this annual report does without specii c gender references. all references to people refer to both men and women.
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