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Austrian Post Investor Day Strategic Aspects of Austrian Post Anton Wais, CEO
Austrian Post Investor DayStrategic Aspects of Austrian Post
Anton Wais, CEO
2Austrian Post Investor Day 2007, Strategic Aspects, Anton WaisNovember 19, 2007
Austrian Post Group: an overview
Letters
Addressed and unaddressed direct mail
Newspapers and magazines
Parcel & Logistics
Parcels
Express mail
Branch Network
Postal services
Financial servicesTelecommunications andretail products
Group
Mail 59.4%
Parcel &Logistics 31.9%
Branch Network 8.5%
External sales Q1-3 2007
Revenue: EUR 990.4m+ 3.3%
Revenue: EUR 531.6m+ 225.1%
Revenue: EUR 141.8m- 2.5%
Revenue: EUR 1,667.3m+ 31.2%
EBIT: EUR 118.3m+ 26.2%
Other/Consolidation 0.2%
3Austrian Post Investor Day 2007, Strategic Aspects, Anton WaisNovember 19, 2007
s.r.os.r.o
DDS
Regional outreach: Further expansion now in Parcel & Logistics Division - City Express in Serbia
4Austrian Post Investor Day 2007, Strategic Aspects, Anton WaisNovember 19, 2007
Restructuring measures 2001-2006
25,522
26,342
25,192
24,456
27,713
29,55830,357
2001
2002
2003
2004
2005
2006
Q3 200
7
Employees Mail sorting centres
39
6
2001 2006
MAIL: Delivery Bases
Branch offices
2,327
1,334
2001 2006
BRANCH: Third-party outlets
170
608
2001 2006
1,880
342
2001 2006
23,520 without acquisitions
5Austrian Post Investor Day 2007, Strategic Aspects, Anton WaisNovember 19, 2007
Growth in revenue and earnings
Revenue (EUR m) EBIT (EUR m)
1,736.71,701.61,654.41,585.21,571.7
2002 2003 2004 2005 2006 2007e
123.3
103.0
82.2
28.1
4.1
2002 2003 2004 2005 2006 2007e
1,667.3 Q1-Q3 2007
+ 25% to +30%
Rest of year
6Austrian Post Investor Day 2007, Strategic Aspects, Anton WaisNovember 19, 2007
Three core strategies are imminent
Convenience offensive & optimisation of core businessOptimal solutions for customer needs
Highly efficient networks with high quality and capacity
Process optimisation in all divisions
Exploiting value chain & specialisation in niches One-stop shop, from data exchange to response management
Specialised logistic offerings in selected niches
Internationalisation - local integratorDevelopment of domestic business incl. supra-regional products
International partnerships and alliances
II.
III
I.
III.
7Austrian Post Investor Day 2007, Strategic Aspects, Anton WaisNovember 19, 2007
Process optimisation
Declining fixed costs / flexibilisation
Core strategies are implemented in all divisions
Mail Parcel & Logistics Branch Network
New business services
meiller direct / Scanpoint
Further development in CEE
Alliances
Redimensioning in Austria
Synergies between the Mail and P&L divisions
Specialized logistics in niches
Pharm. / temperature control
Expansion in CEE
Cooperations / acquisitions in Europe
Improved profile
Strict cost optimisation
Investment BAWAG PSK
Offensive in retail financial services
Alliances
Further development / partner models
I.
II.
III.
8Austrian Post Investor Day 2007, Strategic Aspects, Anton WaisNovember 19, 2007
Mail Division: Stable business development and expansion of service portfolio
Core business New Business Services Growth market CEE
Optimisation of services in all areas
Ongoing process improvements in technical, logistical and organisational terms
Extension of portfolio:- meiller direct- Scanpoint
New direct marketing services
Promotion of document management
Further development of intelligent solutions (scanning, evaluation, archiving)
Increase of local presence
Expansion and further development of existing subsidiaries
Monitoring of other markets
+ +
9Austrian Post Investor Day 2007, Strategic Aspects, Anton WaisNovember 19, 2007
Parcel & Logistics Division: specialised logistics focus and redimensioning of operations in Austria
Western Europe Austria CEE
Development of trans-o-flex fulfils expectations
Further niche focus (pharmaceuticals)
Temperature-controlled transport stimulates growth
Integration of new subsidiaries in Holland and Belgium complement the German market
Changed market environment in Austria
Slovakia: expansion of market position
Integration and further development of the business in Hungary
Market leadership in Croatia
Continuing double-digit earnings and parcel volume growth in CEE
Project initiated
Priority measures defined
Results in December
10Austrian Post Investor Day 2007, Strategic Aspects, Anton WaisNovember 19, 2007
Parcel & Logistics Division Austria: Fields of actions
1. Flexibilisation and adaptation of logistics networks in the parcel and letter mailsegments
2. Value-added services for private customer parcels
3. Customer acquisition drive in the B2B segment
11Austrian Post Investor Day 2007, Strategic Aspects, Anton WaisNovember 19, 2007
Branch Network Division: new positioning of PSK Bank
■ Approx. 200 of largest branches will be upgraded to "Centre branches"
■ Increase of financial consultants by 30%, to 650 employees
■ Full spectrum of retail financial services as "The bank in the post branch".
■ Sales offensive for loans, securities, insurance and pension plans.
Brand relaunch of "PSK Bank"
■ Best opening hours of all Austrian banks
■ Easy and convenient to reach –extensive, nationwide branch network
12Austrian Post Investor Day 2007, Strategic Aspects, Anton WaisNovember 19, 2007
Position of Austrian Post on implementing liberalisedmarket in Europe
Level playing field: same regulations for
all providers
Third-party financing of universal services
Fair competition in labour legislation
To ensure scope and quality of services Only Austrian Post is subject to strict quality standards in Austria (95% J+1 for letters, 90% J+2 for parcels)
Creation of fair competitive framework, also in terms of employment contracts Prevention of social and wage dumping
Liberalisation means elimination of reserved area for financingAlternative financing required Fund solution is impractical Fund solution will not lead to desired results if self-financing of universal postal services is stipulated
Postponing liberalisation from 2009 to 2011 is a positive step, as long as this window of opportunity is used to develop solutions for unresolved issues.
13Austrian Post Investor Day 2007, Strategic Aspects, Anton WaisNovember 19, 2007
Crucial actions in the next months
New start for Parcel & Logistics in Austria: (1) Pioneer for convenience offensive (2) Optimisation of network
Strong cash flow generation including further reduction of non-essential assets and targeted investments and acquisitions
Top dividend policy - attractive dividend scheme to improve capital structure
Dedicated to create a level-playing field for all providers of postal services in Austria
14Austrian Post Investor Day 2007, Strategic Aspects, Anton WaisNovember 19, 2007
Convenience offensive & optimisation core business
Exploiting value chain & specialisation in niches
Internationalisation -local integrator
I.
Austrian Post in the future
II. III.
Post 2010
Local integrator with specialised logistics
Core business: letter mail in
Austria
New business services
Altern. unadd. delivery
B2C and B2B Austria
Specialised logistics B2B in CEE
Mail system engineering
15Austrian Post Investor Day 2007, Strategic Aspects, Anton WaisNovember 19, 2007
Investor relations contact / Disclaimer
Austrian Post Investor RelationsPostgasse 81010 Vienna, Austria
Investor relations web site: www.post.at/ir
E-Mail: [email protected]
Phone +43 (0) 57767 – 30401
Fax +43 (0) 577675 - 30401
DisclaimerThis presentation contains forward-looking statements, based on the currently held beliefs and assumptions of the management of Austrian Post, which are expressed in good faith and, in their opinion, reasonable. These statements may be identified by words such as “expectation” or “target” and similar expressions, or by their context. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of Austrian Post, or results of the postal industry generally, to differ materially from the results, financial condition. performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. Austrian Post disclaims any obligation to update these forward-looking statements to reflect future events or developments.
