#1AUSTRIAN POST Investor Presentation FY 2018 Walter Oblin, CFO Vienna, March 14, 2019 TTYWS FOR LED S FRA RAGILE#21. HIGHLIGHTS AND OVERVIEW 2. Strategy Implementation 3. Group Results 2018 4. Outlook 2019 2#3AUSTRIAN POST AT A GLANCE Mail & Branch Network Letter mail - Direct mail - Newspapers/magazines Branch/financial services Parcel & Logistics - Parcels Express mail items Fulfilment & cash transport E-commerce services Revenue Mix 2018 Financial Services Branch Services Parcel CEE 3% 2% 6% 07 Parcel Austria 23% 1,958 EUR m Revenue 7% Revenue 2018: EUR 1,412m Revenue 2018: EUR 552m Media Post 19% Group Revenue 2018: EUR 1,958m EBIT 2018: EUR 211m INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 Direct Mail 41% Letter Mail & Mail Solutions 3#4CHALLENGING MARKET ENVIRONMENT IN 2018 ווי Mail market - Mail volumes continuously under pressure (only moderate decline in 2018) Online solutions by large customers and e-government initiatives promote electronic substitution of physical mail %= Direct mail market - Advertising market dependent on the economic situation and respective industry trends Uncertainties among many direct mail customers due to GDPR Parcel market Boom in e-commerce leads to steady market growth - Increasing competition, own delivery by a large-volume customer in the Vienna region INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 4#5AN OUTSTANDING YEAR FOR AUSTRIAN POST IN 2018 Revenue Revenue +1.0% - Mail decline of 2.5% offset by 11.5% parcel growth 1 Proposal to the Annual General Meeting on April 11, 2019 Earnings EBIT increase by 1.5% to EUR 210.9m as a result of solid revenue development and cost discipline - Dividends up by 1.5% to EUR 2.081 INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 Investment programme 2018-2021 First new parcel distribution centre already under construction - Step-by-step parcel capacity expansion in the coming years, depending on volume growth Outlook 2019 - Targeted ongoing stability in revenue and operating earnings 5#6CLEAR CAPITAL MARKET POSITIONING Solid and profitable business model 135 523 531 557 527 505 500 498 1,834 1,820 1,791 1,839 1,862 1,864 1,904 1,896 1,939 1,958 10.0% 10.7% 10.8% 6.3% 6.7% 7.1% 7.7% 7.9% 8.3% 8.2% Strong balance sheet and solid cash flow 183 172 171 Revenue trans-o-flex EUR m Revenue excl. trans-o-flex EUR m EBIT margin 156 151 154 161 159 157 162 38.0% 40.3% 42.1% 41.8% 42.6% 42.1% 39.8%* 43.5% 41.7% 41.6% Operating free cash flow 3 EUR M Equity ratio % % 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1 Adjustment of revenue reporting in the Parcel & Logistics Division. Exported services recognised according to the net method (previously recognised as revenue and expenses for services used). 2 EBIT adjusted for special effects Attractive dividend policy 1.50 1.60 1.70 1.80 1.90 1.95 1.95 2.00 2.05 2.08 2009 2010 2011 2012 2013 2014 2015 2016 2017 20184 "Proposal to the Annual General Meeting on April 11, 2019 INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 Dividend per share EUR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 32009-2017: Free cash flow before acquisitions/securities and new corporate headquarters and adjusted for significant property sales. 2018: Free cash flow before acquisitions/securities and growth CAPEX, excl. special effect BAWAG P.S.K. Reliability ("Promise & Deliver") 197 198 202 208 211 182 186 168 149 157 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2 EBIT adjusted for special effects EBIT EUR m Guidance 6#7SLIGHT REVENUE IMPROVEMENT THANKS TO ROBUST MAIL BUSINESS AND PARCEL GROWTH Revenue development EUR m Parcel & Logistics +1.0% 1,938.9 1,958.5 495.6 +11.5% 552.4 Group: +1.0% (Q4: +1.5%) - Slight revenue increase due to moderate mail decline and strong parcel growth Parcel & Logistics: +11.5% (Q4: +11.5%) Basic revenue trend in Austria in 2018 of +10% Additional revenue attributed to segment change of Weber Escal, Croatia and full consolidation of ACL Mail & Branch Network: -2.5% (Q4: -1.9%) - New product structure well received Lower direct mail volumes following positive special effects in 2017 - Decline in financial services of BAWAG P.S.K. as a result of gradual redimensioning Mail & Branch Network 1,447.8 -2.5% 1,412.3 - 2017 2018 INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 7#8IMPROVED OPERATING EARNINGS (EBIT) EBIT development EUR m +1.5% 207.8 210.9 +0.2 -1.5 +4.4 Q4 67.9 ☑ Q3 37.7 Q2 47.8 Π Q4 68.9 Q3 36.9 Q2 48.4 Mail & Branch Network: - Slight EBIT increase to EUR 0.2m in 2018 (+ EUR 1.2m in Q4) Already from Q1 2018: Provisions for redimensioning of financial services (- EUR 21.5m) largely compensated by one-off payment (+ EUR 20.1m) due to end of the cooperation with BAWAG P.S.K. Parcel & Logistics: EBIT decline of EUR 1.5m in 2018 due to intense competition and high cost pressure (+ EUR 0.8m in Q4) Corporate/Consolidation: EBIT improvement of EUR 4.4m in 2018 (- EUR 0.9m in Q4) Lower need to allocate provisions vs. 2017 Q1 54.4 Q1 56.7 2017 Mail & Branch Parcel & Network Logistics Corporate/ Consol. 2018 INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 8#91. Highlights and Overview 2. STRATEGY IMPLEMENTATION 3. Group Results 2018 4. Outlook 2019 9#10CLEAR STRATEGIC PRIORITIES 01 Defending market leadership in the core business 02 Profitable growth in 03 Enhancing efficiency 04 Customer selected markets and flexibilisation of the cost structure orientation and innovation Safeguarding market position in a competitive environment Focusing and performance enhancement INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 ME GIVE SPACE Expansion of logistics infrastructure and process optimisation Promotion of self-service solutions and service improvements 10 10#1101 DEVELOPMENT OF MAIL VOLUMES IN AUSTRIA Letter Mail/Addressed Media Post (millions of items) Basic trend of electronic substitution continues; positive special effects/mailings in 2018 Direct Mail/Unaddressed Media Post (millions of items) - Direct mail volumes back to 2016 level after positive special effects in 2017 0-1% 0-4% -0.1% [ -3.8% 1 -4.9% ୮ 1 1,355 1,357 4,467 1,274 4,311 4,319 4,364 4,437 1,233 4,222 4,218 1,141 1,107 1,065 939 931 866 832 763 728 3,822 723 3,659 3,703 3,777 3,630 3,834 3,667 416 426 408 401 378 379 342 645 652 615 587 592 603 550 2012 2013 20141 2015 2016 2017 2018 2012 2013 2014 2015 Media Post (addressed) addressed 2016 unaddressed 2017 2018 Letter Mail (addressed) 1 Adjusted reporting due to automated calculation INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 11#1201 LETTER MAIL & DIRECT MAIL IN AUSTRIA Current Letter Mail trends - - New product structure as of July 1, 2018 was well received - 50:50 volume split between PRIO (next-day delivery) vs. ECO (2-3 days delivery) Basic volume decline due to e-substitution - Positive special effects and mailings (banks, data protection mailings of many companies) Current Direct Mail/Media Post trends 2018 volumes back to 2016 level after discontinuation of special sales campaigns in 2017 - Perceived uncertainty with respect to addressed volumes within the context of GDPR - Unaddressed direct mail with positive impetus from various food retailers and decline in the furniture business New product structure since July 1, 2018 ECO Universal ECO BUSINESS Not part of kuvert TADLICHER möma die neuesten Sommertrends sind dol 69 0% FINANZIERUNG KUR GENUSS Chfeld Rates before July 1, 2018 PRIO Universal service J+1 day service universal service J+2/3 days J+4/5 days kuvert Letter S 0.68 0.80 0.70 0.65 Letter M 1.25 1.35 1.25 1.10 IHR ERFOLG IST UNSER ZIEL Werbung auf die man sich freut Packet S 2.50 2.70 2.50 2.25 REICHWEITE WEIL'S FUNKTIONIERT! 40,7% Packet M 4.00 4.20 4.00 INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 Themenwelle bel mémo Made by Wabo 24h Ther? Markt 12#1301 MARKET ENVIRONMENT ON THE AUSTRIAN PARCEL MARKET Austrian parcel market (millions of parcels) 0+6% [ +9% 7 228 209 182 148 148 149 151 157 93 93 95 95 92 22 56 99 89 88 88 88 87 59 59 61 49 64 69 60 133 116 93 2011 2012 2013 2014 2015 2016 2017 2018 B2B X2C Source: BRANCHENRADAR.com Marktanalyse GmbH, February 2019 INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 Austrian Post parcel volumes (millions of parcels) 50 557 65 65 57 59 0 +9% ୮ +11%] 108 97 80 81 74 0 70 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 13#1401 MARKET ENVIRONMENT ON THE AUSTRIAN PARCEL MARKET Market statistics for Austria in 2018 Total market volume up by 9.0% in Austria Private parcel market +14.6% to 132.7m parcels - Business parcel market +2.1% to 95.0m parcels Upper single-digit growth expected in the coming years - Slight improvement in Austrian Post's market shares Market shares by volume 2018 Business parcels +2.1% Other 13% GLS Austrian Post 32% 10% DHL 95m 5% Express B2B Total Austrian market +9.0% Other GLS 6% 6% DHL Parcel & 18% DHL Express 228m parcels 48% Austrian Post 22% DPD INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 40 % DPD Private customer parcels +14.6% GLS UPS 3%1% DHL 27% Parcel 133m X2C 59% Austrian Post 10% DPD Source BRANCHENRADAR.com Marktanalyse GmbH, February 2019 14#1501 AUSTRIAN POST WILL SERVE AS A DELIVERY PARTNER V OF DEUTSCHE POST DHL GROUP IN AUSTRIA - Austrian Post will become a delivery partner of Deutsche Post DHL Group in Austria Cooperation planned in the course of 2019 after review by competition authorities Takeover of employees and facilities 10 delivery bases (rented) 3 parcel sorting centres (rented) + takeover of sorting technology Austrian Post will take over DHL employees and most logistics sites INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 DHL Ottensheim Enns Vienna Salzburg Hallein Jenbach St. Michael Oberwart Meiningen Mötz Graz Spittal Klagenfurt 15#1601 PARCEL & LOGISTICS BUSINESS IN AUSTRIA Parcel volume development - Doubling of volumes over the last nine years Success factors in the parcel business 1 Capacity expansion in 2018-2021 to double sorting 2 capacity, likelihood of achieving medium-term target earlier Parcel volumes of Austrian Post (millions of parcels) +115% ~150 Integrated delivery of letters and parcels results in quality and cost advantages Top service level by the branch network and self- service solutions Austrian Post as quality and cost leader Expansion of integrated logistics within the context of the new organisational structure in 2019 50 57 59 65 70 74 80 81 97 46 108 150m parcels likely to be achieved earlier '09 '10 '11 '12 '13 '14 '15 '16 INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 '17 '18 '22 Joint delivery of letters, packets and parcels throughout Austria Additional parcel delivery by own parcel delivery staff in densely populated areas 16#1702 GROWTH IN SELECTED MARKETS Growth focus on Parcel & Logistics GERMANY Austrian Post International Growth in international mail business, revenue up by 7% in 2018 AEP (50% share, at-equity consolidation) Pharmaceutical wholesale joint venture Revenue (wholesale) in excess of EUR 420m in 2018 AUSTRIAN POST INTERNATIONAL AEP AUSTRIA Expand vertical integration in e-commerce (Systemlogistik, e-commerce enabler ACL) TURKEY Aras Kargo (25% stake, not consolidated): Operational level: parcel volume increase by 20%, revenue in excess of EUR 210m in 2018 Ongoing arbitration proceedings and talks with family owners about increased shareholding INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 חו TIME LOGISTIHA NA MRU Feibra F Post سعر WEBER ESCAL AUSTRIAN POST GROUP OVERSEAS EXPRESS CEE/SEE Focus on profitable parcel growth - Ongoing positive organic volume development Strong competition and price pressure Exit from the letter mail market completed in imz - SLOVAK PARCEL SERVICE EXPRESS ONE EXPRESS ONE City Express EXPRESS M&BM express AUSTRIAN POST GROUP aras cargo 17#1802 START-UPS: AEP & ACL ADVANCED COMMERCE LABS AEP - Pharmaceutical wholesale in Germany since 2013 Complete, efficient and customer-oriented offering from one location for all of Germany - -25% market reach (more than 5,000 pharmacies as customers) ACLE-Commerce Enabler - Comprehensive e-commerce software solutions, from consulting to implementation - Integrated shopping experience through omni-channel products Wholesale revenue (EUR m) Consolidated at equity 423 359 303 advanced 244 ACL commerce labs 93 6 2013 2014 2015 2016 2017 2018 Start on Oct. 1, 2013 - EBITDA break-even achieved in 2018 INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 Revenue¹ (EUR m) Fully consolidated since 11/2017 6 7 6 5 2015 2016 2017 2018 Excl. revenue with trans-o-flex - Initial acquisition of 25% stake in Q3 2016 - 70% and full consolidation since Nov. 1, 2017 18#1902 NATIONWIDE BRANCH NETWORK: Service offering consists of three product groups 21. 1. Postal Products 2. Telecommunications & retail products Linked-Ly 800-7222 G7 公益 1.791 POSTAL (€ + 3. Financial services Termination of the cooperation with BAWAG P.S.K. by the end of 2020 SERVICE POINTS Redimensioning of banking consulting already initiated, counter transactions remain unchanged - Business plans currently being reviewed to see how financial services will be offered in the future INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 19#2002 GROUP REAL ESTATE Value appreciation through optimised asset management Value appreciation of investment property pursuant to IAS 40 through active, yield-oriented portfolio management, incl. development - Carrying amount IAS 40 Market value IAS 40 EUR 78m EUR 263m Vienna, Postgasse Sale of 26,600 m² net commercial space, offices in historic stock Vienna, Rochusmarkt Realisation of about 43,000 m² of net commercial space, own use of offices, business and garage areas INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 Vienna, Neutorgasse "Cotton Residence" 4,460 m² of living space with 25 luxury flats, 85% sold until January 2019, completion end of 2019 Salzburg, "SGKK-Tower" 350 m² property incl. building permits developed/sold; another 5,100 m² property in strategic development phase: co-living, hotel, serviced apartments Linz, "Post City Linz" 35,000 m² property, aim of 150,000 gross retail space, initiation phase EU- wide competition, target of zoning and building regulations in 2019 20#2103 CAPACITY AND QUALITY DRIVE Expansion of parcel logistics in Austria - Maintenance CAPEX 2018 of EUR 81.3m, mainly new investments in the vehicle fleet Growth CAPEX 2018 of EUR 58.1 primarily for Hagenbrunn, Lower Austria and Vienna-South 2019: Maintenance CAPEX of about EUR 70m and growth CAPEX in excess of EUR 50m planned; in addition, expansion of existing properties or acquisition of new ones is possible CAPEX (EUR m)1 139 105 103 102 58 58 83 ~50 2014 2015 81 ~70 2016 2017 2018 2019 2020 2021 12014-2017 incl. CAPEX new corporate headquarters INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 Growth CAPEX Parcel capacity expansion (annual allocation depends on projects) Maintenance CAPEX HAGENBRUNN PARCEL CENTRE (Lower Austria) COMMISSIONING SUMMER 2019 SORTING CAPACITY +25% 21#2203 STAFF STRUCTURE IN AUSTRIA Full-time equivalents in the Austrian core business (average for the period) 21,926 490 21,003 20,217 20,064 19,417 1,891 18,790 ୮ +181 FTE Change 2017/2018 1 -741 Civil servants 18,233 2,490 3,350 17,692 17,463 17,644 -292 Employees old CWA 3,858 +1,214 9,397 4,374 Employees new CWA 4,775 7,883 5,127 7,247 5,881 +181 Employees 7,095 6,788 6,230 5,792 5,416 4,922 4,524 4,233 Medium-term trend: Ongoing structural change to employees under the new collective wage agreement 12,039 11,229 10,480 9,926 9,329 8,625 8,042 7,644 7,058 6,137 New collective wage agreement since 2009 Old CWA before 2009 Civil servants 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 22 22#2304 SELF-SERVICE SOLUTIONS REMAIN IMPORTANT Steady increase in usage 34,100 pick-up boxes 2018: >2.4m items 11% OF PARCEL VOLUMES ALREADY- VIA SELF-SERVICE SOLUTIONS IN 2018 50,070 boxes at pick-up stations 2018: >3.1m items 413 drop-off boxes 2018: >5.0m items Jun.12 Dec.18 PAKETE BRIEFE Nov.13 Dec. 18 Jan.12 Dec. 18 Number of solutions Items/month 23 INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019#2404 NEW OFFERINGS FOR ENHANCED CUSTOMER SERVICE New service: "AllesPost" 1 Customer places an order, specifies his "Alles Post address" Delivery by any delivery service 2 to the "AllesPost address" at the Austrian Post logistics centre 3 "Last mile" delivery by Austrian Post INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 SB Abholservice 鈉 Paketmatung "AllesPost" rates Wunsch-Tag AllesPost 3 month subscription (up to 10 items) 12 month subscription (up to 40 items) The first three months free. SINCE MARCH 4, 2019 Price EUR 14.90 EUR 39.90 24 24#251. Highlights and Overview 2. Strategy Implementation 3. GROUP RESULTS 2018 4. Outlook 2019 25#26FINANCIAL INDICATORS AT A GLANCE 2014 2015 2016 2017 2018 Revenue (EUR m) 1,863.52 1,903.9 1,895.6 1,938.9 1,958.5 Revenue slightly above previous year (+1.0%) EBIT (EUR m) 196.9 198.03 202.3 207.8 210.9 Improved operating earnings EBITDA margin (%) 14.1 12.6 13.6 15.2 15.6 Slightly higher EBITDA margin of 15.6% EBIT margin (%) 8.3 8.23 10.0 10.7 10.8 Stable profitability Earnings/share4 (EUR) 2.17 2.103 2.26 2.45 2.13 Cash flow (EUR m) 232.2 216.2 223.6 255.7 295.9 Earnings per share negatively impacted by special effects in financial result 2017 and 2018 Strong increase in cash flow from operating activities due to special payment by BAWAG P.S.K. Equity ratio (%) 42.1 39.8 43.5 41.7 41.6 Stable equity ratio 1 Revenue excl. trans-o-flex ² Adjustment of revenue reporting in the Parcel & Logistics Division. Exported services are recognised according to the net method (previously as revenue and expenses for services used). 3 Adjusted for special effects "Undiluted earnings per share in relation to 67,552,638 shares INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 26#27MAIN ACCOUNTING EFFECTS IN 2018 AND 2019 2018 BAWAG P.S.K. - Termination of the partnership Effects on the income statement in Q1 2018 - EUR m Lump-sum payment for shortening the contractual period - Allocation to provisions for redimensioning financial services +20.1 -21.5 Effects on cash flow Special payment received in Q1 2018 (+ EUR 107m) +107.0 thereof financial services rendered in the reporting period (EUR 37.0m) = Special effect on cash flow in 2018 -37.0 70.0 thereof compensation for redimensioning of financial services in 2017 recognised in the income statement (EUR 26.9m) thereof lump-sum payment for shortening the contractual period (EUR 20.1m) thereof deferred income for financial services to be rendered in 2019 (EUR 22.9m) 2019 IFRS 16 Leases - initial application as at January 1, 2019 - Expected effects on Austrian Post Group (subsequent measurement on the basis of current forecasts) Balance sheet extension (right of use and leasing liabilities as at December 31, 2019) EBITDA effect 2019 (previous expense split into depreciation/amortisation and interest paid) EBIT effect 2019 - Profit for the period effect 2019 INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 EUR m ~240 +32 +2 -2 27 22#28KEY INCOME STATEMENT INDICATORS EUR m Revenue 2017 2018 % A 1,938.9 1,958.5 1.0% 19.6 534.3 Q4 2017 Q4 2018 542.1 Revenue increase, moderate decline of mail revenue and strong parcel growth Other operating income 112.7 96.2 -14.7% -16.5 69.5 22.3 Raw materials, consumables and services used -409.9 -441.2 -7.6% -31.3 -113.4 -128.0 Staff costs -1,020.1 -1,008.7 1.1% 11.4 -275.3 -251.8 2017: positive net effect from claims related to non-wage costs paid in previous periods amounting to EUR 21.0m Other operating costs -325.0 -295.7 9.0% 29.3 -118.3 -84.5 At equity consolidation -1.9 -3.6 -85.4% -1.7 -0.8 -1.9 EBITDA 294.6 305.4 3.7% 10.8 95.9 98.3 Planned depreciation EBITDA margin 15.2% 15.6% 17.9% 18.1% increased by EUR 7.8m compared to 2017 incl. one-off Depreciation, amortisation and impairment -86.8 -94.5 -8.9% -7.7 -28.0 -29.4 effect from replacement of EBIT 207.8 210.9 1.5% 3.1 67.9 68.9 mobile phones EBIT margin 10.7% 10.8% 12.7% 12.7% 2017: disposal of stake in BAWAG Group AG for Other financial result 12.8 -13.1 <-100% -25.9 12.2 -17.3 EUR 11.0m 2018: EUR 14.4m valuation Income tax -55.6 -53.6 3.6% 2.0 -20.9 -12.7 effect for shares in FinTech Profit for the period 165.0 144.2 -12.6% -20.8 59.1 38.9 Group AG 199.0% of Austrian Post revenue is generated in the eurozone. For this reason, there are no material currency translation effects. INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 28#29MAIL & BRANCH NETWORK DIVISION: REVENUE DEVELOPMENT IN 2018 Letter Mail & Mail Solutions (EUR m) - - - Operating volume decline of about 3.5% - 2018 revenue supported by one-off mailings, new product structure was well received Positive special effects of EUR 18.2m due to changed product assignment and e-commerce volumes from Asia Direct Mail/Media Post (EUR m) - - Operating revenue down by about 2-3% - Revenue comparison impacted by positive election effects and individual sales initiatives in 2017 - Inorganic revenue decline of EUR 16.5m due to market exit from CEE/SEE and changed product assignment 782.8 Q4 208.7 Q3 178.1 Q2 189.5 +2.8% 804.8 Q4 219.6 Q3 194.2 Q2 188.7 -6.7% -2/-3% operating 550.4 decline Q4 155.4 513.7 Q4 143.1 Q3 124.9 Q3 115.2 Q2 Q2 132.7 123.3 Q1 Q1 Q1 Q1 206.6 202.2 137.4 132.2 2017 2018 2017 2018 INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 29#30MAIL & BRANCH NETWORK: INCOME STATEMENT EUR m 2017 2018 A Q4 2017 Q4 2018 Revenue 1,447.8 1,412.3 -2.5% -35.6 392.5 384.9 • Letter Mail & Mail-Solutions 782.8 804.8 2.8% 22.0 208.7 219.6 Good development due to one- off mailings, e-commerce and new product structure • Direct Mail 413.3 382.6 -7.4% -30.7 115.0 104.7 • Media Post 137.1 131.2 -4.3% -6.0 40.3 38.4 Market exit from CEE/SEE and changed product assignment • O Branch Services Revenue intra-Group Total revenue 114.6 93.7 -18.2% -20.9 28.5 22.2 Redimensioning of financial 101.7 112.9 11.0% 11.2 29.8 33.2 services and change in 1,549.5 1,525.2 -1.6% -24.4 422.3 418.1 reporting for mobile telephony products (IFRS 15) EBITDA 312.8 311.2 -0.5% -1.6 95.0 97.2 EBITDA margin¹ 20.2% 20.4% 22.5% 23.3% Depreciation, amortisation and impairment -23.2 -21.4 7.7% 1.8 -5.5 -6.5 Stable EBIT due to high cost EBIT 289.6 289.8 0.1% 0.2 89.6 90.7 discipline and synergy effects from integrated delivery EBIT margin¹ 18.7% 19.0% 21.2% 21.7% 1 EBIT margin/EBITDA margin in relation to total revenue INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 30 30#31PARCEL & LOGISTICS DIVISION: REVENUE DEVELOPMENT IN 2018 Revenue development EUR m +11.5% 552.4 495.6 108.4 +11.8% CEE/SEE 96.9 Austria 398.6 +11.4% 444.1 2017 2018 INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 Parcel & Logistics Division: +11.5% (Q4: +11.5%) Revenue growth of 8.1% excl. Weber Escal and full consolidation of ACL - South East/Eastern Europe: +11.8% (Q4: +11.4%) Stable operating revenue development, high price pressure · Segment change of Weber Escal (+ EUR 11.4m), previously Mail & Branch Network Division Austria: +11.4% (Q4: +11.5%) Basic upward revenue trend in 2018 of 10%; e-commerce drives growth on a broad customer base Full consolidation of e-commerce enabler ACL increases the revenue by EUR 5.6m 31#32PARCEL & LOGISTICS DIVISION: INCOME STATEMENT EUR M Revenue 2017 2018 % A Q4 2017 Q4 2018 495.6 552.4 11.5% 56.9 143.1 159.6 Overall 8.1% organic revenue growth, +10.0% in Austria • Premium 240.7 266.1 10.6% 25.5 69.3 77.8 • Standard 219.0 229.6 4.8% 10.6 63.5 66.2 • Other Parcel Services 35.9 56.6 58.0% 20.8 10.3 15.6 Revenue increase mainly related to full consolidation of Revenue intra-Group 4.8 4.9 2.1% 0.1 1.3 1.3 Total revenue 500.4 557.4 11.4% 57.0 144.4 160.8 ACL advanced commerce labs and segment change of Weber Escal EBITDA 58.1 54.9 -5.5% -3.2 18.6 20.1 EBITDA margin¹ 11.6% 9.8% 12.9% 12.5% Depreciation, amortisation and impairment -15.2 -13.6 11.1% 1.7 -4.7 -5.4 EBIT 42.8 41.3 -3.5% -1.5 13.9 14.7 EBIT margin¹ 8.6% 7.4% 9.6% 9.1% EBIT margin of 7.4%, additional expenditures due to capacity bottlenecks 1 EBIT margin/EBITDA margin in relation to total revenue INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 32 32#33SOLID BALANCE SHEET STRUCTURE Balance sheet as at December 31, 2018 EUR m 1,681.2 1,681.2 Financial liabilities of only EUR 10m 10.3 Other financial liabilities Cash and cash equivalents/ 365.8 Securities¹ Liquid financial resources of EUR 366m 420.6 Liabilities/Other Financial assets/ Investment property Receivables/Inventories/Other Structure of provisions (EUR m) 139.5 206 Employee under-utilisation Provisions 439.9 551.1 Statutory and contractually 188 compulsory employee benefits 106 Intangible asssets 83.3 Incl. goodwill of EUR 58.7m 51 Other staff-related provisions Other provisions NO PENSION OBLIGATIONS Property, plant and equipment 652.8 Equity ratio of 41.6% 699.1 Equity 1 Securities are recognised on the balance sheet under other financial assets. ASSETS INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 EQUITY & LIABILITIES 33 33#34ROBUST CASH FLOW IN 2018 Cash flow development EUR m 2017 352.9 295.9 Free cash flow impacted by special effects: BAWAG special payment of EUR 107.0m includes services of EUR 37.0m rendered in the reporting period and special effects of EUR 70.0m Increased maintenance and growth CAPEX (EUR 139.4m vs. EUR 102.1m) +17.3 231.9 -81.3 158.4 -58.1 -15.4 Gross cash flow Cash flow from operating Maintenance CAPEX Other activities Free CF before acquisitions/ securities and Growth CAPEX 3 growth CAPEX Acquisitions/ changes in securities/ Various Free cash flow 316.6 248.81 -77.8 +0.4 171.42 -24.3 -0.61 146.6 1 Cash flow from operating activities and the acquisitions/changes in securities are adjusted for the effect of temporary cash holdings not yet transferred to customers. 2 Free cash flow before acquisitions/securities and CAPEX new corporate headquarters, adjusted for the effect of temporary cash holdings not yet transferred to customers. 3 2017: CAPEX new corporate headquarters; 2018 incl. remaining payment for "Post am Rochus" INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 34#35DIVIDEND POLICY Continuation of attractive and predictable dividend policy - Dividend proposal to the Annual General Meeting: EUR 2.08 per share Dividend yield as at December 31, 2018: 6.9% (share price of EUR 30.02) Unchanged dividend policy: distribution of at least 75% of the Group net profit INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 [+1.5% 1.90 1.95 1.95 2.00 2.05 2.08 1.80 1.70 1.60 1.50 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1 Proposal to the Annual General Meeting on April 11, 2019 35#361. Highlights and Overview 2. Strategy Implementation 3. Group Results 2018 4. OUTLOOK 2019 36#37OUTLOOK 2019 Market environment Approx. 5% annual decline in addressed letter mail volumes Direct mail volumes dependent on economic situation and advertising behaviour of large customers Upper single-digit growth forecast in the parcel business, strong competition and price pressure Investments (CAPEX) - Basic investments of about EUR 70m Growth investments of over EUR 50m, possible expansion of existing properties or acquisitions of new ones Revenue Stable revenue development expected - Assuming a further increase in parcel revenue and a moderate drop in mail revenue - Aim to continue offering financial services via the Austrian Post branch network in future Earnings Forecast of stable operating earnings in the core business INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 37 37#38CONTACT Austrian Post Investor Relations Rochusplatz 1, 1030 Vienna Website: www.post.at/ir E-mail: [email protected] Telephone: +43 57767-30401 Financial Calendar 2019 April 11, 2019 April 23/April 25, 2019 May 16, 2019 August 9, 2019 November 14, 2019 Annual General Meeting Ex-day/Dividend Payment Day Interim Report Q1 2019 Half-Year Financial Report 2019 Interim Report Q1-3 2019 Disclaimer This 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 the forward-looking statements. Austrian Post disclaims any obligation to update these forward-looking statements to reflect future events or developments. Austrian Post | Legal form: limited company under Austrian law | Registered seat in the Municipality of Vienna | Commercial register number: FN 180219d of the Commercial Court of Vienna. This presentation can contain legally protected and confidential information and is protected by copyright. The reproduction, dissemination or duplication of this presentation, either in part or as a whole, requires the express written permission of Austrian Post. INVESTOR PRESENTATION Investor Relations Vienna, March 14, 2019 38