EQS-News: Österreichische Post AG / Key word(s): 9 Month figures
Österreichische Post AG: AUSTRIAN POST IN Q1–3 2022: Good quarterly
development in a challenging market environment

11.11.2022 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

══════════════════════════════════════════════════════════════════════════

Business environment in Q1–3 2022

• Inflation and factor cost increases present ongoing challenges
• Austrian parcel volumes again almost at last year’s strong
lockdown-related volumes
• Improved letter mail trend due to special mailings

Q1–3 2022 volumes

• Austrian letter mail volumes down by 4 % on an operational level, ±0 %
including special effects
(Q3: operating volumes –6 %, –1 % incl. special effects)
• Direct mail and media post volumes up by 3 % year-on-year (Q3: –5 %)
• Parcel volumes after a strong prior-year –1 % in Austria, –14 % in
Turkey and +11 % in CEE/SEE
(Q3: +6 % in Austria, +1 % in Turkey, +14 % in CEE/SEE)

Q3 revenue with growth in all divisions

• Mail Q1–3 2022: –0.7 % to EUR 886.9m (Q3: +0.8 %)
• Parcel & Logistics Q1–3 2022: –4.5 % to EUR 865.3m, +1.2 % excl.
Parcel Turkey
(Q3: +5.6 % or +5.4 % excl. Parcel Turkey)
• Retail & Bank Q1–3 2022: +62.2 % to EUR 85.2m (Q3: +91.0 %)

Q1–3 2022 earnings below previous year

• EBITDA –3.1 % to EUR 258.0m (Q3: –4.1 %)
• EBIT –13.0 % to EUR 125.3m (Q3: –15.5 %)

Outlook 2022 and 2023

• Revenue targeted as close as possible to prior-year performance (2021
revenue: EUR 2.5bn)
• EBIT 2022 expected to be at least at the mid-point of the previously
indicated range (2021 EBIT: EUR 205m, 2020 EBIT: EUR 161m)
• The aim for 2023 is to increase revenue against the backdrop of rising
costs and thereby to keep earnings as stable as possible

 

The first nine months of 2022 for Austrian Post were impacted by
challenging conditions. International value chain disruptions have put an
upward pressure on costs, which was further intensified by the war in
Ukraine and currently makes an economic downturn very likely. “Against
this backdrop, the third quarter and the current fiscal year has been very
satisfactory,” states CEO Georg Pölzl. “Third-quarter revenue development
was positive in all divisions,” CEO Georg Pölzl adds. Mail Division and
Retail & Bank Division have benefited from a positive contribution of
special mailings and the acquisition of ING’s retail business,
respectively. The parcel business developed well in all regions in the
third quarter. In particular, the Austrian market showed a strongly
improved third-quarter revenue trend of 8.6 %. Volume growth in Southeast
and Eastern Europe led to a 5.5 % revenue increase year-on-year. Even the
Turkish parcel market showed signs of recovery in the third quarter with
revenue up by 6.4 % year-on-year, despite having to cope with particularly
challenging macroeconomic conditions this year.

 

Group revenue in the first three quarters of 2022 totalled EUR 1,815.9m
(–1.0 %), whereas third-quarter revenue growth was up by 5.7 %
year-on-year. The parcel business in Turkey is strongly impacted by
inflation and currency effects at present compared with an extraordinarily
successful year in 2021. When excluding Parcel Turkey, however, Group
revenue increased by 1.9 % in the first three quarters of 2022. The Mail
Division reported a revenue decrease of 0.7 % in the first nine months of
the year and Parcel & Logistics revenue fell by 4.5 % in total but showed
an increase of 1.2 % excluding Parcel Turkey. The Retail & Bank Division
developed positively, generating a 62.2 % revenue increase to EUR 85.2m in
the first nine months of 2022.

 

The key earnings figures in the first three quarters of 2022 were also
below the prior-year level and were impacted by the current challenging
market environment. EBITDA of the first three quarters fell by 3.1 % to
EUR 258.0m, whereas earnings before interest and tax (EBIT) declined by
13.0 % year-on-year from EUR 144.0m to EUR 125.3m. The Mail Division
generated EBIT of EUR 110.7m compared to EUR 110.8m in the prior-year
period. Strong revenue development supported by special effects from
one-off mailings created a positive momentum. The Parcel & Logistics
Division reported an EBIT of EUR 58.6m in the first three quarters of
2022, down from EUR 81.3m in the first three quarters of 2021. This
decline is mainly attributable to the challenging environment in the
Turkish market. The Retail & Bank Division showed an EBIT of minus
EUR 24.8m in the first three quarters of 2022, implying an earnings
improvement of 26.8 % compared to minus EUR 33.9m in the previous year.
The ramp-up of the financial services business following the acquisition
of ING’s retail business at the end of 2021 had a positive impact, while
higher integration-related and IT expenses produced a negative impact.

 

Going forward, the challenging business environment is expected to
continue. With inflation being entrenched at a high level, this implies
enormous price pressure for energy and personnel while facing, at the same
time, an expected economic downturn. Austrian Post aims to address these
unfavourable conditions in terms of both revenue and costs. In line with
current estimates, the company assumes that short-term visibility is
sufficient provided and expects revenue for the full year 2022 to be at
the level of EUR 2.5bn generated in 2021. Assuming sufficient energy
supply to continue going forward, Austrian Post expects earnings to be at
least at the mid-point of the previously indicated range (2021 EBIT:
EUR 205m; 2020 EBIT: EUR 161m).

 

Current macroeconomic issues will become even more challenging in 2023 in
the current financial year due to high factor cost increases against the
backdrop of economic headwinds. Profitability must continue to ensure
high-quality business operations as well as necessary investments in
capacity expansion and conversion to sustainable, climate-neutral delivery
services. Accordingly, the intended aim of the company is to increase
revenue against the backdrop of rising costs and thereby to keep earnings
as stable as possible.

 

 

The complete version of the outlook as well as detailed information
(excerpts) from the Group management report for the first three quarters
of 2022 can be found starting on page 4. The entire report is available on
the Internet under post.at/ir in the Reporting - Download Centre.

 

KEY FIGURES

      Change    
Q1–3 Q1–3 Q3
EUR m 20211 2022 % EUR m 20211 Q3 2022
             
Revenue 1,834.2 1,815.9 –1.0 % –18.3 571.6 604.1
Mail 893.4 886.9 –0.7 % –6.5 285.2 287.4
Parcel & Logistics 905.6 865.3 –4.5 % –40.4 277.6 293.2
Retail & Bank 52.5 85.2 62.2 % 32.7 16.2 31.0
Corporate/Consolidation –17.4 –21.5 –24.0 % –4.2 –7.4 –7.6
Other operating income 59.3 78.9 33.0 % 19.6 16.2 19.7
Raw materials, consumables
and services used –516.9 –531.2 –2.8 % –14.2 –161.9 –181.7
Expenses from financial
services –3.7 –9.5 <-100 % –5.8 –1.4 –3.1
Staff costs –847.5 –845.4 0.2 % 2.1 –259.9 –273.6
Other operating expenses –259.3 –250.0 3.6 % 9.3 –82.5 –84.9
Results from financial
assets accounted for using
the equity method 0.3 –0.2 <-100 % –0.5 –0.1 –0.3
Net monetary loss 0.0 –0.4 <-100 % –0.4 0.0 –1.6
EBITDA 266.3 258.0 –3.1 % –8.3 81.9 78.6
Depreciation, amortisation
and impairment losses –122.3 –132.7 –8.5 % –10.4 –41.3 –44.2
EBIT 144.0 125.3 –13.0 % –18.7 40.6 34.3
Mail 110.8 110.7 –0.1 % –0.1 28.4 27.8
Parcel & Logistics 81.3 58.6 –27.9 % –22.7 21.6 13.2
Retail & Bank –33.9 –24.8 26.8 % 9.1 –6.9 –4.4
Corporate/Consolidation2 –14.2 –19.2 –35.4 % –5.0 –2.5 –2.3
Financial result 1.6 –21.1 <-100 % –22.7 –3.0 –7.6
Profit before tax 145.6 104.2 –28.4 % –41.4 37.6 26.7
Income tax –35.1 –19.5 44.6 % 15.7 –11.2 3.2
Profit for the period 110.5 84.8 –23.3 % –25.7 26.3 30.0
Earnings per share (EUR)3 1.57 1.25 –20.5 % –0.32 0.39 0.41
             
Gross cash flow 317.9 233.9 –26.4 % –84.1 90.5 71.9
Cash flow from operating
activities 412.7 –145.5 <–100 % –558.2 131.2 –190.5
CAPEX 93.9 99.5 5.9 % 5.6 46.9 40.8
Free cash flow 370.0 –279.9 <–100 % –649.9 102.9 –225.7
Operating free cash flow4 196.4 147.6 –24.8 % –48.7 57.3 41.8

 

^1 Adjusted presentation
^2 Includes the intra-Group cost allocation procedure
^3 Undiluted earnings per share in relation to 67,552,638 shares
^4 Free cash flow before acquisitions/securities/money market investments,
Growth CAPEX and core banking assets

Vienna, 11 November 2022

EXCERPTS FROM THE MANAGEMENT REPORT Q1–3 2022

 

REVENUE DEVELOPMENT IN DETAIL

 

In the first three quarters of 2022, Austrian Post’s Group revenue
decreased by 1.0 % year-on-year to EUR 1,815.9m. In turn, the third
quarter was characterised by a very positive trend, with revenue up by
5.7 % to EUR 604.1m. However, the parcel business in Turkey was strongly
impacted by inflation and currency effects following an extraordinarily
successful year in 2021. Revenue in the first three quarters of 2022
increased by 1.9 % without accounting for the Turkish business (Parcel
Turkey).

 

The Mail Division reported a 0.7 % drop in revenue in the first nine
months of the 2022 financial year, whereas revenue of the Parcel &
Logistics Division fell by 4.5 %. Excluding the business in Turkey (Parcel
Turkey), divisional revenue actually rose by 1.2 %. The Retail & Bank
Division developed positively, showing a 62.2 % revenue increase to
EUR 85.2m in the first nine months of 2022.

The Mail Division generated 48.3 % of Austrian Post’s revenue in the first
three quarters of 2022. The 0.7 % revenue decrease can be attributed to
the structural decline of addressed letter mail volumes due to electronic
substitution and lower international mail volumes. This was
counterbalanced by positive special effects on traditional letter mail
volumes as well as by adjustments to the price structure in the currently
restrained advertising business.

The Parcel & Logistics Division accounted for 47.1 % of Group revenue in
the period under review. In particular, the Turkish parcel business showed
a decline compared to the successful business development in the previous
year due to the current market situation (inflation and currency effects).
Parcel revenue in Austria increased by 1.3 % year-on-year, in Southeast
and Eastern Europe there was a rise of 6.0 % in revenue. The Logistics
Solution business reported a drop in revenue from the prior-year period.

The Retail & Bank Division generated a 4.6 % share of total revenue in the
first three quarters of 2022, with revenue totalling EUR 85.2m (+62.2 %).
In December 2021, the retail business of ING was acquired. In turn, this
produced positive effects on the net interest and commission income of
bank99.

 

Revenue of the Mail Division totalled EUR 886.9m in the first three
quarters of 2022, of which 62.9 % can be attributed to the Letter Mail &
Business Solutions area. Direct Mail accounted for 27.0 % of the total
divisional revenue, and Media Post had a 10.1 % share.

In the first three quarters of 2022, Letter Mail & Business Solutions
revenue amounted to EUR 557.5m, implying a year-on-year decrease of 2.2 %.
The basic downward volume trend resulting from the substitution of letters
by electronic forms of communication continued. However, the second and
third quarters of 2022 were characterised by positive special effects
related to the one-off mailings by public authorities and energy
suppliers. In the third quarter of 2022, revenue rose by 2.3 %. Operating
letter mail volumes were down by 4 % from the first three quarters of 2021
and showed a stable development when including special effects. Further
development is also impacted by the challenging environment.
Inflation-related price increases for fuel, energy and staff must be taken
into consideration. This caused the necessary adjustments of postal rates.
A rate adjustment for Economy Letters took place on 1 July 2022 and
Priority Letters were adjusted as at 1 October 2022. International letter
mail volumes declined, whereas Business Solutions developed steadily.

Direct Mail revenue increased by 1.2 % year-on-year to EUR 239.1m in the
first three quarters of 2022. The government-imposed store closings in
response to COVID-19 had an extremely negative effect on the direct mail
business in the previous year. The prevailing restrained market sentiment
was partially compensated by adjustments to the price structure.
Third-quarter Direct Mail revenue was down by 1.6 % from the prior-year
quarter. However, increased volatility in the direct mail business is
expected to continue. Pressure in the direct mail business has been
intensified by higher prices for energy and paper.

Revenue from Media Post, i.e., the delivery of newspapers and magazines,
increased by 3.7 % from the prior-year period to EUR 90.3m. In contrast,
the third quarter of 2022 showed lower volumes and a revenue drop of
2.2 %.

 

Revenue of the Parcel & Logistics Division fell by 4.5 % in the first
three quarters of 2022 to EUR 865.3m. This decrease is primarily
attributable to the parcel business in Turkey. In the first nine months of
2022, revenue in local currency of the Turkish subsidiary rose by 47 %
(after valuation IAS 29 hyperinflation) but a decline of 21.3 % had to be
reported in euro. Parcel volumes fell by 14 % in the first three quarters
of 2022 compared to the prior-year period, whereas a recovery was already
evident in the third quarter of 2022 (+1 %). Revenue of Parcel Turkey in
the third quarter of 2022 showed a year-on-year increase of 6.4 %.

Parcel Austria generated a revenue increase of 1.3 % in the first three
quarters of 2022 compared to the previous year. Parcel volumes have now
entered a phase of consolidation (–1 %) following extraordinarily strong
volume growth in previous periods (Q1–3 2021: +16 %, Q1–3 2020: +29 %).
However, the third quarter of 2022 was already marked by an upward trend
once again, showing revenue growth of 8.6 %.

The parcel business in Southeast and Eastern Europe continues to grow,
with revenue up by 6.0 % to EUR 124.9m in the first nine months of 2022
(+5.5 % in Q3 2022).

Revenue of Logistics Solutions (incl. Consolidation), which provides
special logistics services such as the transport of COVID-19 test kits,
fell by 11.0 % to EUR 49.0m in the period under review. Positive special
effects relating to logistics services in the previous year were
significantly reduced in the current reporting period.

 

Revenue of the Retail & Bank Division improved by 62.2 % in the first
three quarters of 2022 to EUR 85.2m from the prior-year level of
EUR 52.5m. Branch Services revenue fell by 3.9 %, from EUR 29.9m to
EUR 28.7m in the period under review. In contrast, Income from Financial
Services at the amount of EUR 56.4m in the first three quarters of 2022
showed strong growth due to the acquisition of the retail business of ING
at the end of 2021. bank99 offers a focused portfolio of financial
products and financial services such as current accounts, loans, housing
finance, funds and savings products.

 

EARNINGS DEVELOPMENT

 

The largest expense items in relation to Austrian Post’s Group revenue are
staff costs (46.6 %), raw materials, consumables and services used
(29.3 %) and other operating expenses (13.8 %). 7.3 % can be attributed to
depreciation, amortisation and impairment losses and 0.5 % to expenses for
financial services.

 

Staff costs in the first three quarters of 2022 totalled EUR 845.4m,
implying a decline of 0.2 % or EUR 2.1m. Operational staff costs rose
slightly compared to the prior-year period. Austrian Post Group employed
an average of 27,156 people (full-time equivalents) in the first nine
months of 2022 compared to the average of 27,303 employees in the
prior-year period (–0.5 %). In addition to operational staff costs,
Austrian Post’s personnel expenses also include various non-operating
staff-related expenses such as severance payments and changes in
provisions, which are primarily related to the specific employment
situation of civil servant employees at Austrian Post. The net effect from
the allocation or reversal of provisions in non-operating staff costs in
the first three quarters of 2022 was marginal.

 

Raw materials, consumables and services used increased by 2.8 % to
EUR 531.2m. This is due mainly to higher fuel and energy costs and also
higher transport costs on the part of external service providers. This was
in contrast to currency translation for the Turkish Lira which, in turn,
resulted in lower expenses in euro year-on-year.

 

Other operating income increased by 33.0 % in the first three quarters of
2022 to EUR 78.9m and is mainly attributed to COVID-19 related
reimbursements from the Austrian Federal Government in connection with
sick leaves of employees as well as a positive valuation effect from the
put option liability for the remaining 20 % stake in Aras Kargo. Other
operating expenses fell by 3.6 % in the period under review to EUR 250.0m.

 

EBITDA amounted to EUR 258.0m in the first three quarters of 2022,
amounting to a decrease of 3.1 % from the prior-year level of EUR 266.3m.
This implies an EBITDA margin of 14.2 %. Depreciation, amortisation and
impairment losses amounted to EUR 132.7m in the first nine months of 2022,
implying an increase of 8.5 % year-on-year or EUR 10.4m. This increase is
attributable mainly to investments in new sites for the parcel logistics
infrastructure. Due to the application of the financial reporting standard
IAS 29 (Financial Reporting in Hyperinflationary Economies) for the
Turkish subsidiary, all items of the income statement were adjusted on the
basis of a general price index starting at the point in time when they
were initially recorded (thus from 1 January 2022). The net monetary gain
or loss is shown as a separate item in the consolidated income statement.
The net monetary loss amounted to minus EUR 0.4m at the end of the third
quarter of 2022. Group EBIT amounted to EUR 125.3m in the first three
quarters of 2022, compared to EUR 144.0m in the prior-year period. The
EBIT margin stood at 6.9 %. EBIT of the second quarter of 2022 included
positive special effects of EUR 10.9m in connection with the Turkish
subsidiary Aras Kargo (valuation option of remaining 20 %, IAS 29
hyperinflation). EBIT of the third quarter of 2022 included a negative
effect due to the revaluation in accordance with IAS 29 hyperinflation of
EUR 2.0m.

 

The Group’s financial result, which amounted to minus EUR 21.1m compared
to EUR 1.6m in the first three quarters of 2021, included negative
valuation effects of the option obligation for the remaining 20 % stake in
Aras Kargo amounting to EUR 16.6m. After deducting the income tax of
EUR 19.5m, the profit for the period for the first nine months of 2022
amounted to EUR 84.8m, down from EUR 110.5m in the first three quarters of
the previous year. This implies undiluted earnings per share of EUR 1.25
compared to EUR 1.57 in the prior-year period.

 

EARNINGS BY DIVISON

 

Group EBIT in the first three quarters of 2022 declined from EUR 144.0m to
EUR 125.3m and was impacted by the current challenging market environment.
In particular, the earnings contribution of the Turkish parcel business
was declined in the first three quarters of 2022 due to inflation and
currency pressure after an extraordinarily successful year 2021.

 

From a divisional perspective, the Mail Division achieved an EBIT of
EUR 110.7m in the first nine months of 2022, compared to EUR 110.8m in the
previous year. Positive revenue development reinforced by special effects
from one-off mailings led to a stable earnings contribution of the
division.

 

The Parcel & Logistics Division generated an EBIT of EUR 58.6m in the
first three quarters of 2022, down from EUR 81.3m in the prior-year
period. This corresponds to a year-on-year decrease of 27.9 % and is
primarily attributable to the challenging business environment in the
Turkish market. As a result, the earnings contribution of the Turkish
subsidiary in the first three quarters of 2022 was positive but lower than
in the previous year.

 

The Retail & Bank Division recorded an EBIT of minus EUR 24.8m in the
first three quarters of 2022, compared to minus 33.9m in the prior-year
period. Accordingly, earnings improved by 26.8 % or EUR 9.1m. The ramp-up
of the financial services business boosted by the acquisition of the
retail business of ING at the end of 2021 had a positive effect, whereas
higher integration and IT costs negatively impacted earnings.

 

EBIT of the Corporate Division (incl. Consolidation and intra-Group cost
allocation procedure) changed from minus EUR 14.2m to minus EUR 19.2m. The
Corporate Division provides non-operating services which are essential for
the purpose of administration and financial control of the company. In
addition to conventional corporate governance tasks, these services
include the management and development of commercial properties not
required for operations, the management of significant financial
investments, the rendering of IT services, the development of new business
models and the administration of the Internal Labour Market of Austrian
Post.

 

CASH FLOW AND BALANCE SHEET

 

Gross cash flow in the first three quarters of 2022 amounted to EUR 233.9m
compared to EUR 317.9m in the first three quarters of 2021 (–26.4 %). Cash
flow from operating activities amounted to minus EUR 145.5m, below the
comparable prior-year level of 412.7m. In this regard, the biggest impact
included changes in the core banking assets of bank99 totalling minus
EUR 340.4m compared to EUR 166.4m in the prior-year period. The change in
core banking assets in the current reporting period included, amongst
others, the purchase of government bonds in the amount of EUR 479m. Core
banking assets include the change in the balance sheet items financial
assets from financial services and financial liabilities from financial
services excluding cash, cash equivalents and balances with central banks,
and thus encompass the deposit and investment business of bank99. Cash
flow from operating activities excluding core banking assets totalled
EUR 194.8m in the first three quarters of 2022.

 

Cash flow from investing activities was minus EUR 134.4m in the first nine
months of 2022, compared to minus EUR 42.7m in the prior-year period.
Expenditure for the acquisition of property, plant and equipment and
investment property (CAPEX) amounted to EUR 99.5m in the reporting period.

 

Austrian Post relies on operating free cash flow as a key indicator to
assess the financial strength of its operating business and to cover the
dividend for the financial year. Excluding the change in core banking
assets, the operating free cash flow totalled EUR 147.6m in the current
reporting period compared to EUR 196.4m in the first three quarters of
2021, and thus remains at a solid level. Cash flow from financing
activities came to minus EUR 87.0m in the first nine months of 2022,
compared to minus EUR 187.5m in the previous year.

 

Austrian Post relies on a solid balance sheet and financing structure.
Total assets amounted to EUR 5,291.8m as at 30 September 2022. On the
asset side, property, plant and equipment at EUR 1,303.7m constitute one
of the largest balance sheet items and included right-of-use assets in
connection with leases of EUR 401.5m. In addition, there were intangible
assets and goodwill from company acquisitions, which were reported at
EUR 161.5m as at 30 September 2022. The balance sheet showed receivables
totalling EUR 372.8m, other financial assets amounted to EUR 70.8m as at
30 September 2022. Financial assets from financial services totalled
EUR 3,094.6m at the end of the third quarter of 2022 and primarily
resulted from business activities of bank99.

 

On the equity and liabilities side of the balance sheet, equity of
Austrian Post Group amounted to EUR 671.4m as at 30 September 2022
(implying an equity ratio of 12.7 %). The pro forma equity ratio (bank99
accounted for using the equity method) equalled 29 % at the end of
September 2022. Provisions of EUR 637.7m are shown on the equity and
liabilities side at the end of September 2022, trade and other payables
totalling EUR 491.7m. Financial liabilities from financial services of
EUR 2,927.1m resulted from business activities of bank99 (deposit and
investment business of bank99 customers).

 

OUTLOOK FOR 2022 and 2023

 

The current year 2022 has and will continue to pose enormous challenges
for companies, particularly in Europe. This started with delays in the
global value chain relating to the COVID-19 pandemic and inflationary
excess demand and was followed by the war in Ukraine with negative impacts
on energy and raw material markets. While inflation being entrenched at a
high level, this implies enormous price pressure for energy and personnel
while facing, at the same time, an economic downturn.

 

Targeted revenue stability in 2022

Austrian Post aims to counteract these unfavourable conditions both at the
revenue and cost side. For this reason, price adjustments are just as
necessary as efficiency increases in internal processes. In line with
current estimates, the company assumes that short-term visibility is
sufficiently provided and expects revenue for the full year 2022 to be at
the level of EUR 2.5bn generated in 2021.

Stable or slightly lower revenue is forecasted for the Mail Division in
2022. The basic volume development for traditional letter mail will
continue to show a downward trend of about 5 % p.a. Positive special
effects of public institutions and energy suppliers are also visible in
the current situation. Direct mail and media post volumes will remain
under pressure. Higher gas and paper prices negatively impact the cost
structure of many customers.

Necessary price adjustments will be continuously implemented due to
international pressure on factor costs such as fuel, energy, and staff.
Accordingly, within the context of the company’s universal service
obligation, postage rates for Economy Letters for non-time-critical mail
items were raised effective 1 July 2022 and for Priority Letters as at
1 October 2022.

Two different trends are evident in the Parcel & Logistics Division.
Business development should be positive in the regions of Austria and
Southeast and Eastern Europe in the second half of 2022 and revenue growth
can be expected. In contrast, it is more difficult to make a precise
forecast for the Turkish market characterised by inflation and currency
uncertainty. On balance, total revenue of the Parcel & Logistics Division
for all of 2022 is expected to be slightly lower than in the previous
year.

Revenue of the Retail & Bank Division will increase significantly in 2022
due to the acquisition of ING’s retail business. The current priority is
the integration of the new unit in bank99 as well as the further ramp-up
of customers and expansion of the product portfolio.

 

Group earnings in 2022

The earnings outlook for 2022 remains uncertain due to the prevailing
economic and inflationary trends. Assuming sufficient energy supply to
continue going forward, Austrian Post expects earnings to be at least at
the mid-point of the previously indicated range (EBIT 2021: EUR 205m, EBIT
2020: EUR 161m).

 

Market environment 2023

The above-mentioned macroeconomic issues will become even more challenging
in 2023 in the current financial year due to high factor cost increases
against the backdrop of economic headwinds. For this reason, visibility in
the mail and parcel markets in 2023 is heavily impaired. Unavoidable price
increases must be taken into account with regards to the product offering
and pricing. Profitability must continue to ensure high-quality business
operations as well as necessary investments in capacity expansion and
conversion to sustainable, climate-neutral delivery services.

Accordingly, the intended aim for 2023 of the company is to increase
revenue against the backdrop of rising costs and thereby to keep earnings
as stable as possible.

 

Investment programme 2022

The investment programme includes the finalisation of capacity expansion
measures for parcel services in Austria as well as the expansion of the
sustainable vehicle fleet towards enhanced e-mobility.

Maintenance CAPEX in Austria, Southeast and Eastern Europe and Turkey
totalling about EUR 100m comprises the basis of the company’s investment
activities in 2022. Furthermore, growth CAPEX of about EUR 80m is planned
in Austria in 2022.

 

CONTACTS Austrian Post  
Austrian Post Harald Hagenauer
Ingeborg Gratzer Head of Investor Relations, Group
Head of Media Relations & Internal Auditing & Compliance
Communications Tel.: +43 (0) 57767-30400
Tel.: +43 (0) 57767-32010 investor@post.at
presse@post.at

 

══════════════════════════════════════════════════════════════════════════

11.11.2022 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

══════════════════════════════════════════════════════════════════════════

Language: English
Company: Österreichische Post AG
Rochusplatz 1
1030 Vienna
Austria
Phone: +43 577 67 - 30400
E-mail: investor@post.at
Internet: www.post.at
ISIN: AT0000APOST4
WKN: A0JML5
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1483525

 
End of News EQS News Service

1483525  11.11.2022 CET/CEST