EANS-Adhoc: Österreichische Post AG / AUSTRIAN POST H1 2012: Revenue growth (+3.1%) and earnings improvement (EBIT +13.5%) in the first half of 2012, Outlook for 2012 confirmed despite unstable econom

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6-month report

10.08.2012

- Increased revenue in H1 - Revenue up 3.1% in the first half of
2012 despite weaker economy - Positive half-year development in the
mail and parcel segments - Further earnings improvement in the first
half-year - EBITDA increase of 6.5% to EUR 132.9m - EBIT rise of
13.5% to EUR 92.2m - Strong cash flow and solid balance sheet -
Operating cash flow before changes in working capital of EUR 112.3m
- Equity ratio increased to 40.7% - Outlook for 2012 confirmed -
Stable or slightly rising revenue - EBITDA margin within the
targeted range of 10-12% and objective of further EBIT improvement

OVERVIEW OF AUSTRIAN POST Against the backdrop of a dampened economic
environment, the revenue and earnings figures of the Austrian Post
Group developed in line with expectations. On balance, revenue rose
3.1% in the first half of 2012. Revenue of the Parcel & Logistics
Division increased by 4.9% and the Mail & Branch Network Division
posted a 2.1% rise. Earnings before interest and tax (EBIT) also
further improved by 13.5% in the first six months of 2012 to EUR 92.2
million. Both divisions made a positive contribution to this growth.
The economic environment of the postal market continues to be
characterised by a structural transformation. The trend towards the
electronic substitution of letters and increased parcel volumes
related to online shopping is continuing. At the same time, the
impact of the challenging economic situation has become apparent.
"With respect to Austrian Post's current and future business
development, it is important that the company continues to advance
further on the basis of its four strategic cornerstones", says
Austrian Post CEO Georg Pölzl. In this regard Austrian Post's market
leadership in its core business was further expanded by strengthening
its foothold in the Austrian parcel market. At the same time, further
progress was made toward greater efficiency with a new
performance-oriented remuneration model for delivery staff. The
earnings potential of the strategic investments held by the Group was
improved thanks to the disposal of its subsidiaries in the Benelux
region and targeted acquisitions. Whereas the growth path in the mail
area in South East and Eastern Europe was continued by strategic
investments in Poland and Bulgaria, the purchase of a company in
Austria expanded Austrian Post's service portfolio in the parcel
segment. Consistent customer orientation is a top priority in the
further development of the Group. Accordingly, online and
self-service solutions were also strongly promoted. "It can be
assumed that the entire 2012 financial year will be impacted by a
restrained economic environment. Nevertheless, we should succeed in
achieving a stable or slightly rising revenue development on a
comparable basis. The Group continues to strive for an EBITDA margin
of 10-12% and an improvement in its earnings before interest and tax
(EBIT)", CEO Georg Pölzl adds.

REVENUE DEVELOPMENT IN DETAIL In the first half of 2012, Austrian
Post succeeded in increasing its total revenue by 3.1%, to EUR
1,173.1m. Group revenue developed in line with expectations against
the backdrop of an uncertain economic situation. Revenue in the Mail
& Branch Network Division rose by 2.1% to EUR 741.6m. The trend
towards declining letter mail volumes caused by electronic
substitution along with the prevailing economic uncertainty and
related negative effects on the advertising industry had a dampening
effect on overall volume development. In addition, there was a
perceptible volume shift from direct mail items to higher quality
letter mail products, and shipments in the field of online shopping
are increasingly being sent as letter mail items instead of parcels.
Moreover, the change in the product portfolio of Austrian Post as of
May 1, 2011 led to positive effects in the first four months of 2012
compared to the prior-year period. New services in the Mail Solutions
segment also contributed to growth. The former Branch Network
Division is now encompassed in the Mail & Branch Network Division.
Revenue and costs in the new management structure developed as
planned. On balance, Austrian Post featured a total of 1,889 postal
service points as at June 30, 2012, of which 1,283 are third-party
operated postal partner offices. Revenue of the Parcel & Logistics
Division rose by 4.9% to EUR 430.8m. From a regional perspective, the
Austrian parcel market generated the highest growth, followed by a
good revenue development in Germany. In the first half-year, revenue
of the disposed Benelux subsidiaries is still partially included in
the income statement. The Dutch company was deconsolidated as at
March 15, 2012, whereas the Belgian subsidiary was deconsolidated
effective May 31, 2012.

INCOME STATEMENT Revenue growth of EUR 35.2m to EUR 1,173.1m also
affected operating expenses for raw materials, consumables and
services used, which rose by EUR 18.6m to EUR 379.5m. In particular,
cost increases were due to higher purchases of external transport
services to handle rising parcel volumes, as well as higher
commissions for postal partner offices as a consequence of the
structural transformation of the branch network. Staff costs rose by
1.7% year-on-year, or EUR 8.9m, to EUR 549.5m. The operational staff
costs included in this figure increased by 1.6% from the first half
of 2011. The average number of employees in the Group declined by 269
compared to the prior-year period to 22,981 employees (full-time
equivalents). Non-operational staff costs, which amounted to EUR
30.1m in the first half of 2012, include all investments designed to
achieve a sustainable improvement in the cost structure, such as
restructuring measures. Accordingly, allocations were made to various
provisions relating to employee under-utilisation or employees
transferring to the federal public service during the reporting
period. All in all, the provisions for employee under-utilisation
reported on the balance sheet of Austrian Post, currently at EUR
239.2m, have remained constant for the most part since the beginning
of 2012. The cash-related use of these provisions in the first
half-year amounted to EUR 13.9m. Due to internationally low interest
rate levels, it was already necessary in the first quarter to reduce
the discount interest rate for existing, interest-bearing provisions
of Austrian Post by 0.25 percentage points. The lower discount factor
led to increased provisioning requirements totalling EUR 8.5m. In the
first half of 2012, earnings before interest, tax, depreciation and
amortisation (EBITDA) of the Austrian Post Group improved to EUR
132.9m. Accordingly, the EBITDA margin was 11.3%. Earnings before
interest and tax (EBIT) rose by 13.5% to EUR 92.2m, corresponding to
an EBIT margin of 7.9%. From a divisional perspective, both operating
divisions improved their operating results during the period under
review. EBIT in the Mail & Branch Network Division rose 10.1% in the
first half-year to EUR 135.0m, mainly as a consequence of the
above-mentioned revenue increase. The Parcel & Logistics Division
also showed an improvement. EBIT increased to EUR 11.4m. All effects
relating to the disposal of Austrian Post's former subsidiaries in
Belgium and the Netherlands were integrated in the earnings figures
as final transaction costs recognised in the second quarter. EBIT in
the Corporate segment was down to minus EUR 54.2m. Amongst other
reasons, this decline can be attributed to the reduction of the
discount interest rate for provisions of 0.25 percentage points and
the related increase in provisioning requirements. Earnings before
tax of the Austrian Post Group rose 15.1% to EUR 91.3m. After
deducting income taxes totalling EUR 20.6m, the Group net profit
(profit after tax for the period) amounted to EUR 70.8m. This
corresponds to earnings of EUR 0.44 per share for the second quarter
of 2012 and EUR 1.05 per share for the first half of the year
(+14.2%).

CASH FLOW Operating cash flow before changes in working capital
amounted to EUR 112.3m in the first six months of 2012, or EUR 19.0m
above the comparable prior-year period. The cash flow from investing
activities of minus EUR 53.6m includes cash outflows for the purchase
of property, plant and equipment (CAPEX) totalling minus EUR 25.5m,
and cash inflows derived from the disposal of property, plant and
equipment of EUR 6.2m. Accordingly, free cash flow before
acquisitions/divestments amounted to EUR 87.4m, or EUR 22.3m above
the comparable figure in the first half of the previous year. All in
all, a total of EUR 37.7m in expenditures related to the disposal of
Austrian Post's subsidiaries in the Benelux and for the acquisitions
in Poland, Bulgaria and Austria.

EMPLOYEES The average number of full-time employees at the Austrian
Post Group totalled 22,981 people in the first half of 2012,
corresponding to a decline in the workforce by 269 employees from the
prior-year period. Most of Austrian Post's labour force is employed
by the parent company Österreichische Post AG (a total of 19,407
full-time equivalents).

OUTLOOK FOR 2012 Austrian Post continues to expect revenue to remain
stable or rise slightly on a comparable basis in the entire year
2012. Development of the mail and parcels business is impacted by the
dampened economic environment as well as structural changes in the
postal and logistics sector. Electronic substitution will lead to a
decline in addressed letter mail volumes, whereas increasing
e-commerce should result in parcel volume growth. The ongoing
economic uncertainty could continue to have a negative effect on the
advertising industry and private consumption patterns. One focal
point of the Group will continue to be on enhancing the profitability
of the services offered. With respect to sustainable earnings
development, Austrian Post confirms the targeted EBITDA margin in the
range of 10% to 12%. The company is also striving to achieve an
improvement in earnings before interest and tax (EBIT) compared to
2011. The operating cash flow generated by Austrian Post is prudently
and purposefully used to finance sustainable efficiency improvements,
structural measures and future-oriented investments, and also serves
as the basis for an attractive dividend policy. Total capital
expenditure (CAPEX) in 2012 is expected to reach a level of about EUR
90m. This will primarily focus on replacement investments in existing
facilities as well as on investments to further improve mail and
parcel logistics operations.

PERFORMANCE OF DIVISIONS MAIL & BRANCH NETWORK DIVISION Since the
beginning of the year 2012, the previous Mail Division and the Branch
Network Division were merged to create the new Mail & Branch Network
Division. The new segment reporting reflects the current
organisational, management and reporting structure. Divisional
revenue developed very positively in the first half of 2012, rising
to EUR 741.6m. In spite of economic uncertainties and the fundamental
trend towards declining addressed letter mail volumes, this solid
performance could be achieved due to the fact that positive special
effects impacted half-year results. In the Letter Mail Business Area,
revenue improved by 7.0% from the prior-year period to EUR 390.3m.
The trend towards slightly decreasing letter mail volumes related to
electronic substitution continued. However, this was counteracted by
volume shifts from direct mail items to higher quality letter mail
products as well as various Internet orders, which are no longer sent
as parcels but as letter mail items. In addition, changes in the
product portfolio of the Letter Mail Business Area, which took effect
on May 1, 2011, continued to deliver positive contributions in the
first four months of the 2012 financial year. Revenue of the Direct
Mail Business Area fell to EUR 213.6m in the first half-year 2012.
This development is attributable to the above-mentioned volume shifts
to the Letter Mail Business Area, but also to the current economic
uncertainty, which in turn led to a dampening of consumer confidence
and a reduction in the volume of direct mail items ordered by
companies. In particular, structural related decreases in the
business of mail order firms have taken place. In contrast, revenue
of the Media Post Business Area improved to EUR 71.6m in the first
six months of 2012. Revenue of the former Branch Network Division,
which is now reported in the business area Branch Services, was down
to EUR 66.1m. Half of this decrease is due to the reclassification of
the value logistics operations as part of the Parcel & Logistics
Division, whereas the other half is the result of declining revenue
from retail products and financial services. On balance, EBITDA of
the Mail & Branch Network Division increased by 8.4% to EUR 150.2m in
the period under review, and EBIT climbed by EUR 12.4m to EUR 135.0m.
The former Branch Network Division is included with an improved but
still negative earnings contribution.

PARCEL & LOGISTICS DIVISION External sales of the Parcel & Logistics
Division climbed 4.9% in the first half of 2012, to EUR 430.8m. As at
March 15, 2012, an agreement was signed with PostNL regarding its
acquisition of the Austrian Post subsidiaries in the Netherlands and
Belgium. The deconsolidation of the Dutch company took place as at
March 15, 2012, and the disposal of the Belgian subsidiary took
effect on May 31, 2012. Since the beginning of the year, the company
"Wertlogistik" specialising in value logistics has been a new part of
the portfolio offered by the Parcel & Logistics Division, whereas it
was previously assigned to Austrian Post's Branch Division. In
addition, the firm "Systemlogistik" acquired as at May 31, 2012
expands the range of services offered by the division with respect to
warehousing, picking and packing of goods. The premium parcel segment
(parcel delivery within 24 hours), which is mainly used in the
business-to-business area, generated a revenue increase of 2.6% in
the first half of 2012, to EUR 329.5m. The German subsidiary
trans-o-flex, which posted a satisfactory growth rate, accounted for
about 60% of this revenue. Parcel volumes of business customers in
Austria increased at a disproportionately high rate, whereas
intensified price pressure was evident in South East and Eastern
Europe. The standard parcels product segment used mainly for
shipments to private customers also posted growth. Revenue rose by
8.8%, to EUR 86.5m. On balance, EBITDA of the Parcel & Logistics
Division improved by EUR 22.0m. EBIT in the first half of 2012
amounted to EUR 11.4m, a rise of 10.5% from the prior-year level.
This includes various transaction costs relating to the disposal of
the subsidiaries in the Netherlands and Belgium.

The half-year financial report 2012 is available on the Internet at:
www.post.at/ir/en --> Publications --> Financial Reports

Further inquiry note:
Austrian Post
Mr. Harald Hagenauer
Head of Investor Relations & Corporate Governance
Tel.: +43 (0) 57767-30400
harald.hagenauer@post.at

Ms. Ingeborg Gratzer
Head of Press & Internal Communications
Tel.: +43 (0) 57767-24730
ingeborg.gratzer@post.at

Mr. Michael Homola
Press Spokesman
Tel.: +43 (0) 57767-32010
michael.homola@post.at

end of announcement euro adhoc
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issuer: Österreichische Post AG
Haidingergasse 1
A-1030 Wien
phone: +43 (0)57767-0
mail: investor@post.at
WWW: www.post.at
sector: Transport
ISIN: AT0000APOST4
indexes: ATX Prime, ATX
stockmarkets: official market: Wien
language: English