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EQS-News: Österreichische Post AG / Key word(s): Interim Report
AUSTRIAN POST Q1 2024: First-quarter revenue and earnings above the prior-year level
2024-05-08 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
AUSTRIAN POST Q1 2024:
First-quarter revenue and earnings above the prior-year level

Revenue growth in all divisions

.     Revenue up by 14.1 % to EUR 758.6m 
.     Mail +2.3 % to EUR 315.6m 
.     Parcel & Logistics +23.2 % to EUR 402.9m (+16.9 % excl. Parcel Türkiye) 
.     Retail & Bank +26.0 % to EUR 47.2m 

Earnings higher YOY

.     EBITDA +8.7 % to EUR 103.4m 
.     EBIT +11.4 % to EUR 52.4m 
.     Earnings per share +28.2 % to EUR 0.59 

Cash flow and balance sheet
. Operating free cash flow of EUR 72.3m
. Balance sheet total incl. bank99 of EUR 5.9bn
Outlook 2024
. Expected Group revenue growth in the mid-single-digit range
. Earnings (EBIT) at least at the prior-year level

The first quarter of 2024 continued to be impacted by difficult macroeconomic conditions prevailing in Austrian Post's
markets. The high inflation rate and weak economic catalysts negatively affected the willingness of companies to invest
as well as consumer purchasing behaviour. On the one hand, a decline in traditional retail stores was noticeable
whereas on the other hand growth in national and international e-commerce was reported. Austrian Post generated a 15 %
increase in parcel volumes in Austria in the first quarter of 2024, compared with a 6 % rise in Türkiye and 44 % in
Southeast and Eastern Europe.

"Against the backdrop of a difficult market environment as well as inflation-related cost increases, the company
performed very well in the first quarter of the year, generating both revenue and earnings increases," says Austrian
Post CEO Georg Pölzl. Total Group revenue in the first quarter of 2024 increased by 14.1 % to EUR 758.6m and showed
improvements in all divisions. Mail Division revenue equalled EUR 315.6m (+2.3 %) and was impacted by the structural
decline of addressed letter mail volumes and a decrease in the direct mail business. However, it was positively
affected by postal rate adjustments in the letter mail, direct mail and media post segments. The Parcel & Logistics
Division generated EUR 402.9m in revenue in the first quarter of the year (+23.2 %; +16.9 % excl. Parcel Türkiye),
showing a very positive development in all regions. Revenue of the Retail & Bank Division amounted to EUR 47.2m
(+26.0 %). Interest rate developments in recent months positively contributed to divisional revenue.

Earnings also improved in the first quarter of 2024. EBITDA was up by 8.7 % to EUR 103.4m, whereas earnings before
interest and taxes (EBIT) increased by 11.4 % to EUR 52.4m. Parcel & Logistics Division earnings increased by 44.9 %,
with Parcel Türkiye making a substantial contribution to the earnings improvement. Business in Türkiye continues to be
more strongly influenced by inflation and currency translation than in other markets. The Mail Division generated a
3.3 % earnings increase in contrast to the decline of EUR 3.5m in the Retail & Bank Division attributable to one-time
IT expenditures for the core banking migration project of bank99. The profit for the period of the Austrian Post Group
totalled EUR 41.6m in the reporting period compared to EUR 32.0m in the previous year (+30.1 %). In turn, this equalled
earnings per share of EUR 0.59 in the first quarter of 2024 (+28.2 %).

In addition to market challenges, Austrian Post faces inflation-related cost increases for the entire 2024. On the
revenue side, this will be dealt with new products and services as well as upward price adjustments. Based on current
forecasts, revenue growth in the mid-single-digit range is expected in the 2024 financial year. Revenue growth on the
one hand, but also cost discipline and efficiency on the other, are necessary in order to ensure the stability that
Austrian Post is aiming to achieve. In both mail and parcel logistics, Austrian Post is forging ahead with solutions
that offer a high level of customer benefits, but which also enable efficient and plannable processes. Austrian Post's
2024 target is for earnings (EBIT) to be at least at the same level as last year. A slight rise in earnings is possible
if the current macroeconomic environment continues in Austrian Post's markets.

The planned investment programme remains a top priority alongside revenue generation and cost discipline. Investments
in the coming years will focus on expanding international logistics as well as e-mobility. For example, the company
aims to ensure CO[2]-free last mile delivery in Austria by 2030. Austrian Post expects investments in 2024 in total of
EUR 140-160m in order to secure sustainability and growth.

"We are extremely grateful to our employees for their commitment and joint efforts to work on providing first-class
service to our customers," concludes CEO Georg Pölzl.


The complete version of the outlook as well as detailed information (excerpts) from the Group management report for the
first quarter 2024 can be found starting on page 4. The entire report is available on the website of Austrian post
under post.at/investor in the Download Centre.

KEY FIGURES
Change
EUR m Q1 2023 Q1 2024 % EUR m

Revenue                                                               664.7   758.6  14.1 %  94.0 
Mail                                                                  308.6   315.6   2.3 %   7.0 
Parcel & Logistics                                                    327.1   402.9  23.2 %  75.8 
Retail & Bank                                                          37.5    47.2  26.0 %   9.8 
Corporate/Consolidation                                                -8.5    -7.0  17.5 %   1.5 
Other operating income                                                 18.6    23.6  26.7 %   5.0 
Raw materials, consumables and services used                         -197.6  -224.3 -13.5 % -26.7 
Expenses from financial services                                       -1.9   -11.3 <-100 %  -9.4 
Staff costs                                                          -299.8  -341.9 -14.0 % -42.1 
Other operating expenses                                              -91.3  -103.8 -13.7 % -12.5 
Results from financial assets accounted for using the equity method     0.1     0.5  >100 %   0.5 
Net monetary gain                                                       2.4     1.9 -20.9 %  -0.5 
EBITDA                                                                 95.1   103.4   8.7 %   8.2 
Depreciation, amortisation and impairment losses                      -48.1   -51.0  -6.0 %  -2.9 
EBIT                                                                   47.0    52.4  11.4 %   5.3 
Mail                                                                   41.0    42.3   3.3 %   1.3 
Parcel & Logistics                                                     16.7    24.2  44.9 %   7.5 
Retail & Bank                                                           0.9    -2.7 <-100 %  -3.5 
Corporate/Consolidation^1                                             -11.5   -11.4   0.4 %   0.0 
Financial result                                                       -3.4     1.3  >100 %   4.7 
Profit before tax                                                      43.6    53.7  23.0 %  10.0 
Income tax                                                            -11.6   -12.0  -3.4 %  -0.4 
Profit for the period                                                  32.0    41.6  30.1 %   9.6 
Earnings per share (EUR)^2                                             0.46    0.59  28.2 %  0.13 

Gross cash flow                                                        79.8    92.7  16.1 %  12.9 
Cash flow from operating activities                                   -50.9   147.0  >100 % 197.9 
CAPEX                                                                  24.1    25.0   3.6 %   0.9 
Free cash flow                                                       -106.8    74.9  >100 % 181.7 
Operating free cash flow^3                                             75.1    72.3  -3.7 %  -2.8 

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

Vienna, 8 May 2024 EXCERPTS FROM THE GROUP MANAGEMENT REPORT Q1 2024

REVENUE DEVELOPMENT IN DETAIL

In the first quarter of 2024, Austrian Post's Group revenue increased by 14.1 % year-on-year to EUR 758.6m. All divisions produced increased revenue in the first three months of 2024: Revenue of the Mail Division was up by 2.3 %, whereas Parcel & Logistics revenue climbed by 23.2 % and the Retail & Bank Division showed a 26.0 % increase.

The share of the Mail Division as a proportion of the total revenue generated by Austrian Post in the first quarter of 2024 amounted to 41.2 %. The division's revenue of EUR 315.6m is negatively impacted by the structural decline of addressed letter mail volumes as a result of electronic substitution but also benefits from last year's postal rate adjustments. Moreover, a subdued advertising environment is notable, which is related to the economic weakness of certain retail segments.

The Parcel & Logistics Division accounted for 52.6 % of Group revenue or EUR 402.9m in the reporting period. The parcel business developed very positively in all regions. In particular, high growth was generated in Türkiye, impacted by high inflation and the exchange rate of the Turkish Lira.

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