OSTERREICHISCHE POST

POST
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44.75EUR +1.59%

PRESS RELEASE : AUSTRIAN POST Q1 2021: Improved -3-

05/12/2021 | 01:31am
operating activities amounted to EUR 124.1m, up from EUR 96.7m in the prior-year 
period. In this regard, the financial assets and liabilities (core banking 
assets) of bank99 constituted the biggest effect, positively impacting the cash 
flow in the amount of EUR 39.0m. The core banking assets include those items 
resulting from the deposit and investment business of bank99. 
 
The cash flow from investing activities was minus EUR 6.4m in the first three 
months of 2021, compared to EUR 1.0m in the prior year period. 
 
Austrian Post focuses on the key indicator of operating free cash flow to both 
assess the financial strength of its operating business and to cover the 
dividend. The operating free cash flow after deducting core banking assets 
totalled EUR 74.4m in the current reporting period compared to EUR 58.2m in the 
first quarter of the previous year. The cash flow from financing activities 
amounted to minus EUR 42.1m in the first three months of 2021, whereas the 
prior-year figure was minus EUR 11.5m. 
 
Austrian Post relies on a conservative balance sheet and financing structure. 
This is demonstrated in particular by the high level of liquid financial 
resources and solid investment of cash and cash equivalents at the lowest 
possible risk. Austrian Post's total assets amounted to EUR 2,761.2m as at 
31 March 2021. On the asset side, property, plant and equipment at EUR 1,114.2m 
constitute the largest balance sheet item and include leased assets of 
EUR 310.3m. Intangible assets totalled EUR 93.2m, whereas goodwill reported for 
acquisitions equalled EUR 63.8m at the end of the first quarter of 2021. 
Receivables totalled EUR 409.6m, including current trade receivables of 
EUR 331.5m. Other financial assets equalle EUR 106.7m as at 31 March 2021. 
Financial assets from financial services amounted to EUR 644.9m at the end of 
the first quarter of 2021, and largely relate to the deposit and investment 
business of bank99 as well as the handling of cash payments for third parties 
(e.g. pensions). 
 
On the equity and liabilities side of the balance sheet, equity of the Austrian 
Post Group equalled EUR 701.7m as at 31 March 2021 (implying an equity ratio of 
25.4 %). Provisions amounted to EUR 660.5m, while trade and other payables 
totalled EUR 510.0m at the end of March 2021. Financial liabilities from 
financial services of EUR 574.8m mainly relate to the deposit and investment 
business of bank99. 
 
OUTLOOK FOR 2021 
 
The year 2021 continues to be impacted by the burdens imposed by the COVID-19 
pandemic and the consequences of various lockdown measures. An economic recovery 
is expected in the course of the year. Nevertheless, several customer segments 
will continue to be negatively affected by restrictions. In turn, this means 
increased volatility as well as reduced visibility with respect to short-term 
revenue and earnings forecasts. 
 
Revenue growth >10 % 
 
On balance, Austrian Post expects its revenue to increase by more than 10 % in 
2021, primarily driven by the growing parcel business. 
 
Revenue in the Parcel & Logistics Division could increase by about 25 % in 2021. 
Further growth should be possible this year following the strong organic growth 
generated in the previous year. Moreover, the Turkish subsidiary Aras Kargo 
(full consolidation since 25 August 2020) will make a positive contribution to 
Group revenue. 
 
In contrast, the Mail Division is negatively affected by the pandemic and 
related lockdown measures as well as by possible negative economic impacts felt 
by various customers. In the Letter Mail segment, the volume decline for 
conventional letters should remain at a level of about 5 % in 2021. The decrease 
in the Direct Mail and Media Post areas will be even higher than expected. All 
in all, Austrian Post anticipates a stable or slightly declining revenue 
development in the Mail Division, depending on how the coronavirus pandemic 
plays out. 
 
However, the revenue development of bank99 launched in April 2020 should 
steadily improve in the course of the year 2021. 
 
Higher Group Earnings in 2021 
 
Austrian Post aims to achieve an earnings improvement of about 15 % in the 
current financial year (basis 2020 EBIT: EUR 161m). A stable or slightly 
declining earnings situation is expected in the Mail Division, whereas earnings 
of the Parcel & Logistics Division should improve by about 25 %. Revenue growth 
in the Retail & Bank Division should also have a positive impact on the 
division's operational EBIT. 
 
Investments/CAPEX 
 
Parcel growth in 2020 but also in 2021 has shown how important it is to have the 
required capacities available in a timely manner. Austrian Post succeeded in 
ensuring good quality service by handling the record parcel volumes of recent 
quarterly periods. This should also be the case in managing the foreseeable 
volume increases in the years to come. For this reason, Austrian Post will 
continue to press ahead with its investment programme. The aim is to increase 
the company's sorting capacity by a further 30 % by the end of 2022. Austrian 
Post's objective is to expand its leading position in Austria in terms of the 
quality of its services as well as its efficiency and speed. 
 
In addition to maintenance CAPEX on a current scale of about EUR 70-80m in 
Austria, more than EUR 60m in growth CAPEX is planned again in Austria. 
Moreover, about EUR 20m in investments are planned for expansion measures or 
land purchases to support the logistics infrastructure along with approx. 
EUR 20-30m for investments in international holdings. 
 
Austrian Post continues to pursue the objective of combining growth and dividend 
strength. The growth opportunities that arise will be secured by corresponding 
structural investments. Furthermore, the cash flow generated from operating 
activities will continue to be used to finance the necessary basic investments 
and to ensure an attractive dividend policy. 
 
 
 
Further inquiry note: 
Austrian Post 
Ingeborg Gratzer 
Head of Press Relations & Internal Communications 
Tel.: +43 (0) 57767-32010 
presse@post.at 
 
Austrian Post 
Harald Hagenauer 
Head of Investor Relations, Group Auditing & Compliance 
Tel.: +43 (0) 57767-30400 
investor@post.at 
 
end of announcement                         euro adhoc 
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(END) Dow Jones Newswires

May 12, 2021 01:30 ET (05:30 GMT)

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