EANS-News: AUSTRIAN POST IN 2015: REVENUE INCREASE OF 1.6% - OPERATING EBIT UP 2.6% - SALE OF TRANS-O-FLEX LED TO IMPAIRMENT LOSSES - STABLE OUTLOOK FOR 2016

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annual result

Market environment - Mail: Basic trend of e-substitution continued in
2015; differentiated development of direct mail items - Parcel:
Growth of e-commerce; increasing competition and price pressure

Revenue
- Revenue increase of 1.6% to EUR 2,401.9m
- Growth in the mail (+0.9%) and parcel (+2.9%) segments

Earnings
- Operating EBIT of EUR 198.0m (+2.6%)
- Impairment losses relating to sale of the German trans-o-flex Group
- Reported EBIT of EUR 89.0m due to one-off effects

Cash flow and dividends - Increase in free cash flow before
acquisitions/securities to EUR 178.3m - Proposal to the Annual
General Meeting: Stable dividend of EUR 1.95 per share

Outlook for 2016
- Stable operating earnings development targeted

OVERVIEW OF AUSTRIAN POST

Austrian Post recorded a solid operating performance in the 2015
financial year. In spite of challenging market conditions, Group
revenue rose by 1.6% to EUR 2,401.9m.

The Mail & Branch Network Division achieved revenue growth of 0.9% to
1,501,7m in 2015 in a structurally shrinking market. Once again the
basic trends shaping the letter mail and logistics markets in recent
years continued in 2015: The volume of addressed mail items is under
increasing pressure both on a national and international level due to
the substitution of conventional letter mail by electronic
communication. Revenue growth was driven by raised postal rates as of
March 1, 2015 as well as the impetus provided by the increased
handling of international cross border mail volumes.

During the reporting period, the Parcel & Logistics Division
generated revenue growth of 2.9% through differing regional
developments. The outstanding logistics and service quality of
Austrian Post served as the basis for the volume increase of 8% to 80
million parcels. On Austrian Post's international markets, the parcel
business in South East and Eastern Europe developed positively. In
contrast, the business development of the German trans-o-flex Group
remained below expectations.

For this reason, Austrian Post assessed various strategic options for
the logistics company trans-o-flex within the context of an
evaluation process carried out in 2015. Austrian Post reached an
agreement with strategic investors LOXXESS Group and Schoeller
Holding to sell trans-o-flex. "We have made a clear decision offering
good development perspectives for all parties involved", says Georg
Pölzl, Chief Executive Office of Austrian Post. The acquisition is
expected to take place in the coming weeks subject to approval of the
German Competition Authority. The disposal of trans-o-flex led to a
one-off non-cash effect in the consolidated financial statements for
2015, on an adjusted basis the Group reported a good operating
result.

Operating EBIT before special effects improved by 2.6% to EUR 198.0m,
an upward trend which reflects developments over the first three
quarters of the year. EBIT of Austrian Post for the 2015 financial
year was negatively impacted by special effects, which consisted
principally of two items. Firstly, an impairment of EUR 131.9m was
reported, mostly in connection with the sale of the trans-o-flex
subsidiary. Secondly, the consolidated financial statements of
Austrian Post for 2015 contain a positive net effect of EUR 23.0m
resulting from claims related to non-wage costs paid in previous
periods. On the basis of the operating EBIT of EUR 198.0m, the
above-mentioned one-off effects in 2015 resulted in a reported EBIT
of EUR 89.0m.

Free cash flow before acquisitions and securities totalled EUR 178.3m
in 2015, ahead of the comparable figure of EUR 151.7m in 2014. This
solid cash flow comprises a good basis for Austrian Post to finance
its future investments and dividends. On this basis, the Management
Board will propose to the Annual General Meeting that a dividend of
EUR 1.95 per share is to be distributed for the 2015 financial year,
thus continuing the Group's attractive dividend policy.

Generally speaking, the basic trends affecting the letter mail and
parcel markets, which have intensified internationally, are expected
to continue in 2016. Revenue forecasts of Austrian Post for 2016
depend on a potential change in its portfolio. Earnings in 2016 will
be impacted by revenue trends relating to letter mail and parcel
volumes, but also by new, innovative business opportunities and the
ongoing implementation of the targeted efficiency enhancement
programme. On balance, Austrian Post is striving to maintain a stable
development with an operating result (EBIT) at the same level as in
2015.

REVENUE DEVELOPMENT IN DETAIL

Group revenue of Austrian Post rose by 1.6% in the 2015 financial
year to EUR 2,401.9m compared to the previous year. Both the Parcel &
Logistics Division as well as the Mail & Branch Network Division
contributed to this revenue growth, expanding by 2.9% and 0.9%
respectively.

Revenue of the Mail & Branch Network Division totalled EUR 1,501.7m
in 2015. Letter Mail & Mail Solutions revenue at EUR 808.4m climbed
2.3% from the previous year. The basic trend towards declining mail
volumes related to the substitution of letters by electronic
communication continued. This was more than offset by postal rates as
of March 1, 2015 and growing international cross border mail volumes.
Revenue in the Direct Mail business fell by 0.5% to EUR 428.7m during
the reporting period. This decline is mainly due to the sale of two
mail subsidiaries in Hungary and Slovakia. Media Post revenue was
down 1.7% in 2015 to EUR 140.8m, which was mainly due to the general
decline in the business with daily, weekly and monthly newspapers and
magazines. Branch Services revenue at EUR 123.8m in the year under
review represented a rise of EUR 0.7m from the previous year. This
increase is primarily the result of a change in the invoicing model
of certain retail goods. Revenue from mobile telephony products and
financial services in cooperation with the company's banking partner
BAWAG P.S.K. continued to decline, though a positive trend for mobile
telephony products was evident in the fourth quarter in comparison to
the prior-year period.

Revenue of the Parcel & Logistics Division rose by 2.9% in a
year-on-year comparison to EUR 900.2m. From a regional perspective,
54.0% of total revenue in the Parcel & Logistics Division was
generated in Germany, compared to 37.5% in Austria and 8.5% by the
subsidiaries in South East and Eastern Europe. Whereas the business
in Austria and the CEE markets developed very positively, revenue
generated by the German trans-o-flex Group fell by 0.5% due to the
challenging competitive situation. In contrast, revenue in Austria
rose by 7.4% in 2015, driven by the trend towards online shopping and
a market share increase in the business parcel segment. On balance,
the subsidiaries in South East and Eastern Europe posted a
substantial revenue increase of 6.6%.

EXPENSE AND EARNINGS DEVELOPMENT

Austrian Post's staff costs amounted to EUR 1,106.0m in the 2015
financial year, comprising a slight decline of 0.3%. The operational
staff costs for salaries and wages included in this amount declined
from the previous year. In addition to ongoing operational staff
costs, staff costs also include various non-operational costs such as
termination benefits and changes in provisions, which are primarily
related to the specific employment situation of civil servants at
Austrian Post.

Earnings before interest, tax, depreciation and amortisation (EBITDA)
of the Austrian Post Group amounted to EUR 302.7m (margin 12.6%),
compared to the prior-year level of EUR 333.8m. This difference is
mainly due to the positive contribution to EBITDA arising from the
sale of Austrian Post's former corporate headquarters in 2014 for EUR
62.4m. The year 2015 included the repayment claims related to
non-wage costs paid in previous periods less any compensation
payments, with a net effect of EUR 23.0m.

Operating EBIT of Austrian Post improved by 2.6% to EUR 198.0m. The
comparable figure of EUR 192.9m in 2014 resulted from the adjustment
for the positive revenue effect of EUR 62.4m relating to the sale of
Austrian Post's former corporate headquarters offset against
impairment losses of EUR 58.4m.

Two special effects impacted the company's business results in 2015.
On balance, Austrian Post reported impairment losses of EUR 131.9m
for 2015, of which EUR 125.8m relate to the German trans-o-flex Group
which classified as held for sale. In addition, a positive net effect
of EUR 23.0m was recognised from the already-mentioned claims related
to non-wage costs paid in previous periods less any compensation
payments. Accordingly, the reported EBIT totalled EUR 89.0m.

The reported net earnings were negatively impacted by the
above-mentioned special effects. After deducting the income tax
expense, the profit for the period (Group net profit) amounted to EUR
71.6m, compared to the prior-year level of EUR 146.8m. This
corresponds to undiluted earnings per share of EUR 1.06 for the 2015
financial year. Adjusted for the effects after tax as described
above, Group net profit for the period totalled EUR 142.2m, or EUR
2.10 per share.

CASH FLOW AND BALANCE SHEET

The cash flow from operating activities in 2015 amounted to EUR
216.2m compared to EUR 232.2m in 2014. This difference can be
attributed to higher tax payments as well as an increase in trade
receivables. This effect was partly offset by a rise in liabilities.

Cash flow from investing activities reached a level of minus EUR
49.0m in 2015, which was significantly lower than in 2014. This
development mainly related to the sale of Austrian Post's former
corporate headquarters in Vienna's first district, for which the
outstanding balance of the purchase price of EUR 60.0m was paid in
the first quarter of 2015. Cash outflows for the acquisition of
property, plant and equipment (CAPEX) amounted to EUR 104.7m during
the reporting period, above the level of EUR 82.6m in the previous
year. CAPEX included payments of about EUR 33m for the construction
of Austrian Post's new corporate headquarters.

In aggregate, free cash flow during the reporting period was EUR
167.2m, up from EUR 162.8m in the previous year. Free cash flow
before acquisitions/securities reached EUR 178.3m, thus higher than
the prior-year figure. This provides a good basis for Austrian Post's
ability to finance investments and dividends in the future.

Austrian Post pursues a conservative balance sheet and financing
structure. This is primarily demonstrated by the high equity ratio,
low financial liabilities and the solid level of cash and cash
equivalents invested with the least possible risk. Equity of the
Austrian Post Group amounted to EUR 641.7m as at December 31, 2015,
corresponding to an equity ratio of 39.8%. The analysis of the
company's financial position shows a high level of financial
resources totaling EUR 356.7m. This includes cash and cash
equivalents of EUR 299.6m and securities of EUR 57.2m. These
financial resources are in contrast to financial liabilities of only
EUR 12.6m.

EMPLOYEES

The average number of full-time employees at the Austrian Post Group
totalled 23,476 people during the period under review, comprising a
decrease of 436 employees from the prior-year period. Most of
Austrian Post's staff (full-time equivalents) is employed by the
parent company Österreichische Post AG (a total of 17,983 full-time
equivalents). A total of 5,493 people (full-time equivalents) are
employed by the subsidiaries.

OUTLOOK 2016

Generally speaking, the basic trends impacting the letter mail and
logistics markets in recent years are expected to continue in 2016.
Volumes of addressed mail are under pressure on both a national and
international level, whereas parcel volumes to private customers are
rising, driven by increasing online orders. In addition to the
current basic trends in the mail and parcel business, the revenue
forecasts for Austrian Post in 2016 also considerably depend on a
potential change in its portfolio. This could be a deconsolidation of
the trans- o-flex Group or a potential increase in the stake held by
Austrian Post in the Turkish parcel services provider Aras Kargo,
which will be decided in the course of the year. With the exception
of these two measures, Austrian Post is striving to maintain a
largely stable revenue development in 2016.

In the mail business, the basic trend of e-substitution i.e. the
substitution of traditional letter mail by electronic communication
is likely to continue, resulting in further volume declines. This
downward trend is also anticipated for 2016, accompanied by a drop in
mail volumes within the predicted range of minus 3-5%. The direct
mail business will continue to show a differentiated development in
the individual customer segments, with a decrease perceptible for
addressed direct mail items in particular.

The development of the Parcel & Logistics Division is impacted by
differing trends in the private and business parcel segments.
Considerable growth continues to be anticipated in the private
customer parcel segment due to the steadily growing online business.
At the same time, intensified competition is expected as a result of
the positive development in this market segment. In turn, this could
impact parcel prices and volumes and thus the company's business
development. In contrast, subdued economic growth prospects are
unlikely to provide much impetus to the business parcel segment.

On balance, Austrian Post aims to achieve a stable development in
2016, with an operating EBIT at the prior-year level.

The operating cash flow generated by Austrian Post will continue to
be used prudently and in a targeted manner to finance sustainable
efficiency increases, structural measures and future-oriented
investments. With this in mind, operational capital expenditure
(CAPEX) of about EUR 80m is planned in 2016, focusing on sorting
technologies, logistics and customer solutions. In addition, Austrian
Post is in the process of building its new corporate headquarters in
Vienna's third district. The project is expected to be completed in
2017. The Management Board will propose to the Annual General Meeting
scheduled for April 14, 2016 to approve the distribution of a
dividend amounting to EUR 1.95 per share for the 2015 financial year.
Thus, the company is once again continuing its attractive and
predictable dividend policy on the basis of a solid balance sheet
structure and the generated cash flow. Austrian Post adheres to its
objective of distributing at least 75% of the Group's net profit to
its shareholders.

The interim financial report FY 2015 is available on the Internet at
www.post.at/ir --> Publications --> Financial Reports.
contact

Vienna, March 10, 2016

KEY FIGURES

Change

2014/2015
EUR m 2014* 2015 % EUR m Q4 2014* Q4 2015
Revenue 2,363.5 2,401.9 1.6% 38.5 636.0 655.4
thereof Mail & 1,487.7 1,501.7 0.9% 14.0 402.0 412.2
Network
Division
thereof
Parcel & 875.0 900.2 2.9% 25.2 233.8 243.2
Logistics
Division
thereof
Corporate/ 0.8 0.1 -87.5% -0.7 0.2 0.0
Consolidation
Other
operating 134.4 99.2 -26.2% -35.3 84.3 48.8
income
Raw materials,
consumables -737.5 -749.6 -1.6% -12.1 -197.2 -203.6
and services
used
Staff costs -1,109.5 -1,106.0 0.3% 3.5 -294.1 -292.3

Other operating -317.0 -344.0 -8.5% -27.0
-96.8 -106.1 expenses Results from financial assets
-0.1 1.1 >100% 1.3 1.4 1.3 accounted
for using the equity method Earnings before interest, tax,
depreciation 333.8 302.7 -9.3% -31.1 133.6
103.4 and amortisation (EBITDA) Depreciation

and -84.9 -85.0 -0.1% -0.1 -22.2 -21.0
amortisation
Impairment -52.0 -128.7 >100% -76.7 -47.1 -128.6
losses
Operating EBIT
adjusted for 192.9 198.0 2.6% 5.1 60.2 62.7
one offs
Special 4.0 -108.9 <-100% -112.9 4.0 -108.9
effects

Earnings before 196.9 89.0 -54.8% -107.8
64.2 -46.2 interest and tax (EBIT) thereof Mail & Branch
270.0 284.7 5.4% 14.7 74.5 76.1 Network
Division hereof Parcel & -19.5 -105.4 <-100%
-85.9 -38.1 -121.9 Logistics Division thereof Corporate/
-53.6 -90.3 -68.5% -36.7 27.9 -0.4
Consolidation Other financial -2.8 2.0 >100%
4.8 -0.4 -0.6 result Earnings

before tax 194.0 91.0 -53.1% -103.0 63.8 -46.8
(EBT)
Income tax -47.2 -19.5 58.7% 27.7 -16.8 14.3
Profit for the 146.8 71.6/142.2** - - 47.1 -32.5
period
Earnings per 2.17 1.06/2.10** - - - -
share (EUR)***
Cash flow from
operating 232.2 216.2 -6.9% -16.0 67.6 62.6

activities Investments in property, plant and -82.6
-104.7 -26.8% -22.1 -29.6 -43.4 equipment (CAPEX)
Free cash flow before 151.7 178.3 17.5%
26.6 43.2 20.0 acquisitions/ securities

* The presentation of Revenue and Raw materials, consumables and
services used in the Parcel & Logistics Division was adjusted.
Exported services were recognised according to the net method
(previously reported as revenue and expenses for services used) **
Adjusted for special effects *** Undiluted earnings per share in
relation to 67,552,638 shares

Further inquiry note:
Österreichische Post AG
Mag. Ingeborg Gratzer
Leitung Presse & Interne Kommunikation
Tel.: +43 (0) 57767-32010
ingeborg.gratzer@post.at

Österreichische Post AG
DI Harald Hagenauer
Leitung Investor Relations, Konzernrevision & Compliance
Tel.: +43 (0) 57767-30400
harald.hagenauer@post.at

end of announcement euro adhoc
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company: 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