PRESS RELEASE : AUSTRIAN POST RESULTS IN H1 2021: -3-

of 2021, compared to minus EUR 28.7m in the prior-year period. A positive 
earnings trend has been observed in the financial services business since the 
launch of bank99. In turn, earnings were negatively affected by staff-related 
provisions in the first two quarters of 2021. 
 
The EBIT of the Corporate Division (incl. Consolidation) improved from minus 
EUR 14.4m to minus EUR 11.7m and included positive earnings from the sale of 
real estate. The Corporate Division provides non-operating services which are 
typically essential for the purpose of the administration and management of the 
company. In addition to conventional corporate governance tasks, these services 
include the management and development of commercial properties not required for 
company operations, the management of key financial investments, the rendering 
of IT services, the development of new business models and the administration of 
the Internal Labour Market of Austrian Post. 
 
CASH FLOW AND BALANCE SHEET 
 
The gross cash flow in the first half of 2021 equalled EUR 226.1m, compared to 
EUR 117.2m in the first half of 2020 (+92.9 %). The cash flow from operating 
activities amounted to EUR 281.5m, below the figure of EUR 306.9m in the prior- 
year period. In this regard, the change in financial assets and liabilities from 
financial services (core banking assets) of bank99 in the amount of EUR 119.3m 
constituted the biggest item. The core banking assets include items resulting 
from the deposit and investment business of bank99. 
 
The cash flow from investing activities was minus 14.4m in the first six months 
of 2021, compared to EUR 109.1m in the previous year. 
 
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 the change core banking 
assets totalled EUR 139.1m in the current reporting period compared to EUR 45.3m 
in the first half of the previous year. The cash flow from financing activities 
amounted to minus EUR 144.6m in the first six months of 2021, whereas the prior- 
year figure was minus 144.7m. The cash flow from financing activities mainly 
consists of the dividend payment equalling EUR 108.1m. 
 
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 2,786.3m as at 
30 June 2021. On the asset side, property, plant and equipment at EUR 1,109.7m 
constitute the largest balance sheet item and included right-of-use assets from 
leases of EUR 292.1m. Intangible assets totalled EUR 90.9m, whereas goodwill 
reported for acquisitions equalled EUR 63.9m at the end of the first half of 
2021. Receivables totalled EUR 387.4m, including current trade receivables of 
EUR 318.5m. Other financial assets equalled EUR 85.8m as at 30 June 2021. 
Financial assets from financial services amounted to EUR 749.9m at the end of 
the first half of 2021, and result from the business activities of bank99. 
On the equity and liabilities side of the balance sheet, equity of the Austrian 
Post Group equalled EUR 622.7m as at 30 June 2021 (implying an equity ratio of 
22.3 %). Provisions amounted to EUR 643.3m, while trade and other payables 
totalled EUR 518.0m at the end of June 2021. Financial liabilities from 
financial services of EUR 679.3m result from business activities of bank99 
(deposit and investment business of the customers of bank99). 
 
OUTLOOK FOR 2021 
 
The full financial year 2021 will continue to be affected by the impacts and 
implications related to the COVID-19 pandemic. Both government-imposed measures 
as well as various operating restrictions are shaping the business development 
of several customer groups. This means the situation is marked by increased 
volatility with respect to short-term revenue and earnings development. 
 
Revenue growth of about 15 % 
Austrian Post expects its revenue to increase by approx. 15 %, primarily driven 
by the strong revenue development of the national and international parcel 
business. 
Revenue of the Parcel & Logistics Division should increase by about 35 % year- 
on-year based on solid organic growth and the solid development of the 
international subsidiaries. 
The Mail Division is negatively affected by the pandemic and related lockdown 
measures as well as the possible negative economic impacts felt by various 
customer groups. In the Letter Mail segment, the volume decline for conventional 
letters should remain at a level of about 5 % in 2021. There are signs of a 
recovery in the Direct Mail and Media Post areas following the declines in 2020. 
However, it is unlikely that the pre-COVID-19 level will be reached in 2021. 
Overall, Austrian Post anticipates a stable or slightly declining revenue 
development of the Mail Division. 
In contrast, the revenue development of bank99 launched in April 2020 should 
steadily improve in the course of 2021. A closing of the acquisition of the 
retail business of ING in Austria is expected by the end of 2021. 
 
Higher Group Earnings in 2021 
Earnings are expected to increase by at least 20 % in the 2021 financial year 
(basis 2020 EBIT: EUR 161m) due to the successful first half-year results. 
A stable or slightly declining earnings situation is anticipated in the Mail 
Division, whereas a 50 % rise in Parcel & Logistics Division earnings is 
expected. Revenue growth in the Retail & Bank Division should also have a 
positive impact on the division's operating EBIT. 
 
Investments/CAPEX 
Parcel growth in 2020 and 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 in 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 50 % from 2020 to 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. 
More than EUR 60m in growth CAPEX is planned again in Austria in addition to 
maintenance CAPEX on a current scale of about EUR 70-80m. Moreover, about 
EUR 20m in investments are expected for expansion measures or land purchases to 
support the logistics infrastructure along with approx.EUR 20-30m for 
investments of subsidiaries (CAPEX International). 
 
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.: [phone] 
[e-mail] 
 
Austrian Post 
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

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