PRESS RELEASE : AUSTRIAN POST FY 2020: Extreme -3-

had a positive impact on the result. In turn, additional costs due to health and 
safety measures and higher logistics costs related to the pandemic had a 
negative impact on the result particularly in the second quarter. 
 
The Retail & Bank Division recorded an EBIT of minus EUR 43.8m in 2020 compared 
with minus EUR 4.6m in the previous year. The decline in earnings is attributed 
to reduction in revenue. While bank99 was launched in the market in April 2020, 
the previous year still included EUR 29.3m in service fees the former banking 
partner. Earnings were also impacted by negative factors relating to COVID-19 
and by start-up costs for bank99. 
 
EBIT in the Corporate Division (incl. Consolidation) changed from minus EUR 
29.4m to minus EUR 33.5m. The Corporate Division provides non-operating services 
which are essential for the purpose of the administration and management of the 
company. In addition to conventional governance tasks, these activities include 
management and development of properties not required for operations, the 
management of significant financial investments, provision of IT services, 
development of new business models and administration of the Internal Labour 
Market of Austrian Post. 
 
 
CASH FLOW AND BALANCE SHEET 
Gross cash flow amounted to EUR 327.1m in the 2020 financial year, compared with 
EUR 333.7m in the previous year (-2.0 %). Cash flow from operating activities 
amounted to EUR 732.6m in the reporting period after EUR 327.4m in the previous 
year. The biggest effect here comes from the financial assets/liabilities from 
financial services (Core Banking Assets) of bank99, which had a positive effect 
of EUR 522.2m. Core banking assets combine positions resulting from the deposit 
and investment business of bank99 since the beginning of April 2020. 
 
Cash flow from investing activities amounted to EUR 7.0m in 2020 after minus EUR 
290.7m in the previous year. The change resulted primarily from the inflow of 
payments for securities and money market investments, which had an effect of EUR 
130.2m on cash flow in the reporting period (compared to a cash outflow of EUR 
124.0m in the same period of the previous year). This includes additionally the 
sale of the stake in flatexDEGIRO AG (previously flatex AG) at the amount of EUR 
38.0m in the 2020 financial year. Free cash flow before securities, money market 
investments and core banking assets came to EUR 87.3m in 2020. 
 
Austrian Post focuses on the operating free cash flow both to assess the 
financial strength of its operating business and to cover the dividend. The 
operating free cash flow amounted to EUR 125.7m in the current reporting period, 
compared to EUR 150.5m in the previous year. In addition, there are growth 
investments (growth CAPEX) that are partly financed using balance sheet savings. 
Cash flow from financing activities comprised mainly the dividend distribution 
and the repayment of lease liabilities, amounting to minus EUR 153.1m in the 
2020 financial year. 
 
Austrian Post relies on a conservative balance sheet and financing structure. 
This is demonstrated by the high level of cash and cash equivalents and solid 
investment of financial liquidity at the lowest possible risk. Austrian Post's 
total assets amounted to EUR 2,680.2m as at 31 December 2020. On the asset side, 
property, plant and equipment amounting to EUR 1,137.2m is the largest balance 
sheet item and includes the right-of-use assets in connection with leases in the 
amount of EUR 326.6m. Intangible assets and goodwill resulting from company 
acquisitions amounted to EUR 158.3m as at 31 December 2020. The balance sheet 
shows receivables of EUR 379.7m, which include current trade receivables of EUR 
314.2m. Other financial assets amounted to EUR 116.1m as at 31 December 2020. 
Financial assets from financial services amounting to EUR 589.5m were reported 
for the first time. These result largely from the deposit and investment 
business of bank99 as well as from the processing of cash payments for third 
parties (e.g. pensions). On the equity and liabilities side of the balance 
sheet, the equity of the Austrian Post Group amounted to EUR 655.0m as at 31 
December 2020 (equity ratio of 24.4 %). Provisions amounted to EUR 632.5m, while 
trade and other payables totalled EUR 508.2m at the end of December 2020. 
Financial liabilities from financial services amounting to EUR 532.9m were 
reported for the first time as a separate item on the equity and liabilities 
side of the balance sheet. They mainly include the deposit and investment 
business of bank99 as well as the processing of cash payments for third parties 
(e.g. pensions). 
 
 
OUTLOOK FOR 2021 
 
The COVID-19 pandemic and the related restrictions had an impact on business 
development at Austrian Post during the year under review and will continue to 
do so in 2021. Current forecasts do not suggest any immediate return to 
normality. Although economic recovery is expected during the year, some of 
Austrian Post's customer segments are still affected by restrictions. This leads 
to reduced visibility for our business expectations and, as a result, in a wider 
risk range for revenue and earnings. 
 
Revenue growth expected in 2021 
At large, Austrian Post expects its revenue to increase by 8 % to 10 % in 2021, 
assuming a steady improvement in the macroeconomic environment. The development 
in the three divisions will differ. 
 
In the Mail Division, both stable revenue development and a slight decline are 
possible in 2021. In this division, restrictions and lockdown measures imposed 
in response to the pandemic will have just as negative an impact as potential 
negative economic consequences of the crisis will have on the ability of major 
clients to do business. In the letter mail segment, the basic assumption for the 
electronic substitution of conventional letters has so far been at around 5 % 
p.a. The first quarters of 2021 will show whether this long-term trend will 
continue. A return to previous trends in direct mail and media post will only be 
possible if the overall conditions improve. 
 
Revenue in the Parcel & Logistics Division should show a much better 
development, with an increase of around 20 % being expected. While the division 
benefited from volume increases due to the lockdown of retail shops in 2020, 
further increases should nevertheless be possible in 2021. The use of e-commerce 
is spread across a broader retailer and consumer base. In addition, the Turkish 
subsidiary, which was fully consolidated in August 2020, will also have a 
positive impact in the 2021 Group's key figures. 
 
The activities of bank99, which was launched on the market in April 2020, will 
lead to further revenue improvements in the Retail & Bank Division in the course 
of 2021. 
 
Improved Group earnings in 2021 
An improvement of earnings of Austrian Post in 2021 is conditional on lockdown 
situations in the retail sector being avoided and efficient mail and parcel 
logistics being maintained. Despite various uncertain framework conditions, we 
are aiming to achieve an increase in earnings of at least 10 % in the current 
year (EBIT for 2020: EUR 161m). At the same time, the forecast range 
particularly for the Mail Division has been widened. Depending on the course of 
economic recovery, a stable or slightly declining earnings situation is 
expected. In the Parcel & Logistics Division, on the other hand, the focus will 
be on improving operating results and integrating the new Turkish subsidiary. 
This should increase earnings by around 20 %. Revenue growth in the Retail & 
Bank Division should also have a positive impact on the division's EBIT. 
 
Investments/CAPEX 
2020 has shown the importance of having the required capacity to be able to 
respond to rapid parcel growth. After bottlenecks emerged in the second quarter 
of 2020, Austrian Post did a good job of managing record parcel volumes 
following capacity expansion measures in the fourth quarter of 2020. As a 
result, Austrian Post will continue to push ahead with its investment programme. 
By the end of 2022, the aim is to have increased the company's sorting capacity 
by a further 30 %. Austrian Post's objective is to expand its leading position 
in Austria in terms of quality of service provision as well as efficiency and 
speed. In addition to maintenance CAPEX on a current scale of around EUR 70m in 
Austria, more than EUR 60m in growth CAPEX is planned again for Austria. 
Furthermore, to support the logistics infrastructure, expansion measures and 
land purchases in the amount of about EUR 20m, as well as investments in the 
international holdings in the amount of about EUR 20m are expected. 
 
Due to the strong cash position in the balance sheet, Austrian Post is able to 
self-finance the targeted growth investments in logistics infrastructure and in 
the new financial services. The cash flow generated from operating activities 
will therefore continue to be used for investments in operational areas and will 
help maintain an attractive dividend policy. 
 
The Management Board will propose to the Annual General Meeting scheduled for 15 
April 2021 the distribution of a dividend in the amount of EUR 1.60 per share. 
The company is continuing its attractive dividend policy on the basis of a solid 
balance sheet structure and generated cash flow: Austrian Post continues to 
pursue the objective of distributing at least 75 % of the net profit to its 
shareholders. 
 
 
 
 
Further inquiry note: 
Austrian Post 
Ingeborg Gratzer 
Head of Press Relations & Internal Communications 
Tel.: [phone] 
[e-mail] 
 
Harald Hagenauer 
Head of Investor Relations, Group Auditing & Compliance 
Tel.: [phone] 
[e-mail] 
 
end of announcement                         euro adhoc 
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(END) Dow Jones Newswires

March 12, 2021 01:30 ET (06:30 GMT)