EANS-Adhoc: Österreichische Post AG / Revenue down by 3.6%, EBIT decline of 8.0%

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6-month report

13.08.2009

Austrian Post in the First Half-Year 2009: Revenue down by 3.6%, EBIT
decline of 8.0% Ongoing difficult market environment in 2009 makes
cost savings the top priority

- Difficult market environment: economic forecasts predict decline in
Austria's GDP of about 4%; companies strive to reduce volume and
weight of mail items and intensify electronic communication - Group
revenue down 3.6%, or EUR 42.8m - Mail (-4.5%): Decrease of daily
letter mail and direct mail items - Parcel & Logistics (-3.0%):
Recession-related volume decline and price pressure; growth on the
Austrian market supported by the new customer Hermes - Branch
Network (+1.3%): Positive development of telecommunications products;
stable revenue from financial services - Earnings before interest and
tax (EBIT) decrease 8.0%, to EUR 75.4m - Initial successes of
efficiency-enhancing and cost-reduction measures, which continue to
be the top priority

Austrian Post at a glance The tendencies shown in the first half of
the 2009 financial year confirm the expectation that the
international economic crisis will also pose a major challenge to
Austrian Post. This is primarily related to the fact that letter mail
and parcel volumes are dependent on overall market developments,
consumption patterns of the population and advertising expenditures
of companies. In addition, in the current business environment, many
companies are trying to counteract declining revenues by cutting
costs. The result of this development, as well as the structural
change related to the increasing substitution of letters by
electronic media, negatively affects daily business letter mail and
parcel delivery volumes. Accordingly, the total revenue of Austrian
Post fell by 3.6% or EUR 42.8m to EUR 1,156.0m in the first half of
2009 compared to the preceding year. Group revenue declined in the
second quarter by 4.8%, to EUR 560.8m.

Both the Mail and Parcel & Logistics Divisions were subject to major
changes. The Mail Division posted a 4.5% drop in revenue caused by
the reduction in daily business mail and direct mail items, whereas
the Parcel & Logistics Division recorded a 3.0% contraction in
revenue based on a recession-related price pressure on premium
parcels.

In contrast, business with standard parcels developed positively,
supported by the volume growth of the new customer Hermes. In 2008,
Austrian Post already began to implement measures to improve
efficiency and reduce costs as a means of counteracting the
consequences of the economic downturn. The result has been
perceptible successes in cutting operating expenses and adjusting
personnel capacities. On balance, Austrian Post has realised cost
savings of about EUR 36m. However, the decline in earnings was
primarily shaped by the drop in revenue of EUR 42.8m, and salary
increases amounting to EUR 22m in the first half of 2009. Earnings
before interest and tax (EBIT) were down 8.0%, to EUR 75.4m.

As a result, Austrian Post will intensify implementation of the
measures being taken to counteract the economic crisis. This relates
both to initiatives designed to increase sales as well as further
cost reductions. The company should manage to compensate for salary
increases in 2009 on the basis of socially acceptable changes, such
as taking advantage of the process of employee fluctuation and not
filling job vacancies. The collective wage agreement valid for new
employees as of August 1, 2009 will also positively support these
efforts. Further savings in operating expenses are also planned.
Austrian Post aims to cut the total costs of raw materials,
consumables and services used and other operating expenses by at
least EUR 30m below the comparable level for 2008.

"The economic situation and structural changes require systematic
cost reductions at all levels," says Rudolf Jettmar, Chairman of the
Management Board and Chief Executive Officer of Austrian Post.

Business development - earnings in detail The recession in 2009 has
clearly left its mark on many companies. Declining revenues and
increased cost pressure have led to an intensified decline in
business mail volumes for letters and parcels. Austrian Post's
business development was not only negatively affected by the severe
downturn, but also by the fewer working days in the first half of the
year compared to H1 2008. Accordingly, total revenue of Austrian Post
fell by 3.6%, or EUR 42.8m in a year-on-year comparison, to EUR
1,156.0m. Group revenue declined in the second quarter of 2009 by
4.8%, to EUR 560.8m.

Revenue of the Mail Division in the first half-year 2009 decreased by
4.5%, primarily due to declining business in the Letter Mail and
Infomail (addressed and unaddressed direct mail items) business
areas. The economic downturn and the resulting reduction in daily
business mail volumes, the substitution of letter mail by electronic
media and delays in advertising expenditures for direct marketing had
a perceptibly negative impact on earnings.

The recession-related decline in parcel volumes and international
price pressure combined to negatively affect the revenue development
of the Parcel & Logistics Division (-3.0%), in particular in the
premium parcel segment. In contrast, business with standard parcels
in Austria expanded, supported by the volume growth of the new
customer Hermes.

The 1.3% revenue growth generated by the Branch Network Division can
be attributed to the good development in sales of mobile telephony
and fixed line products. The development of the financial services
business was stable.

Revenue by division*)

EUR m H1 H1 Change Q2 Q2
2008 2009 2008 2009
Total revenue 1,198.8 1,156.0 -3.6% 588.9 560.8
Mail 720.5 688.4 -4.5% 350.5 335.5
Parcel&Logistics 382.5 371.1 -3.0% 191.3 180.2
Branch Network 94.0 95.2 +1.3% 46.0 44.5
Other/Consolidation 1.8 1.2 -30.6% 1.1 0.6
Working day in Austria**) 125 122 - 62 60
*) External sales of the divisions
**) Calendar working day

Income statement
EUR m H1 H1 Change Q2 Q2
2008 2009 2008 2009
Revenue 1,198.8 1,156.0 -3.6% 588.9 560.8
EBITDA 139.8 126.5 -9.5% 64.4 54.3
EBIT 81.9 75.4 -8.0% 32.1 27.6

Austrian Post's priorities are increasingly focused on a sales offensive as
well as activities designed to improve efficiency and reduce costs. These
measures have achieved initial successes. The decline in revenue of EUR 42.8m
and the salary increase of about EUR 22m could be partially compensated by
operational cost savings of approximately EUR 36m. Although initial savings
have been achieved in respect to material costs and other operating expenses,
additional positive effects based on the initiated measures will be primarily
expected in the second half of the financial year.
Staff costs of Austrian Post, the largest operating expense item, amounted to
EUR 560.9m in H1 2009 and comprising close to 50% of total revenue. The wage
agreements concluded at the end of 2008, stipulating salary increases of 3.7%
as of January 1, 2009 on the basis of the high inflation rate prevailing in
2008, pushed up staff costs. The salary increases accounted for EUR 22m in
additional costs throughout the Group, which could only be counteracted by
socially acceptable measures such as taking advantage of employee fluctuation.
The total average number of employees fell by 889 people from the preceding
year, to 25,900 employees.

All operating divisions suffered from recession-related reductions in earnings.

The Mail Division generated a positive EBIT of EUR 114.5m (EUR -21.2m
from H1 2008), whereas EBIT at the Parcel & Logistics Division was
negative, at EUR -3.4m (EUR -10.5m change), and the Branch Network
Division posted an EBIT of EUR -4.0m (EUR -10.7m change).

In contrast, an earnings improvement was achieved in the
Other/Consolidation segment, which encompasses non-allocated costs
for central departments, expenses in connection with unused
properties, income from rents and leases, gains on the disposal of
property, plant and equipment, expenses in connection with the
employee social plan and the change in the provision for employee
under-utilisation. In the first half of 2009, the necessity for new
allocations to the provision for employee underutilisation was low.
In fact, an increasing number of employees for whom provisions had
been previously allocated could be reintegrated into the company's
operations. On balance, the provision for employee under-utilisation
could be reduced by EUR 22.3m. In contrast, a total of EUR 15.1m was
allocated as a provision for employees who voluntarily accepted the
employee social plan stipulating temporary leave until they reach
retirement age. As a result, EBIT of the Other/Consolidation segment
improved to EUR -31.8m.

The financial result of Austrian Post declined to EUR -0.1m in the
first half of 2009, which is related, amongst other reasons, to lower
interest rates and a positive one-off effect in the previous year.

Earnings before tax fell by 15.5%, to EUR 75.2m. After deducting
income taxes totalling EUR 19.1m, net profit for the period (earnings
after tax) amounted to EUR 56.2m, corresponding to EUR 0.83 per share
in the first half-year 2009, compared to EUR 1.00 per share in the
previous year, and EUR 0.33 per share in the second quarter of 2009
after EUR 0.40 per share in Q2 2008.

Solid balance sheet structure Austrian Post pursues a risk-adverse
business approach. This is demonstrated by the high equity ratio, the
relatively low level of financial liabilities and the high amount of
cash and cash equivalents.

On balance, the analysis of the balance sheet of Austrian Post shows
a considerable level of current and non-current financial resources
on the assets side. Austrian Post had cash and cash equivalents of
EUR 144.6m as at June 30, 2009, and financial investments in
securities amounting to EUR 118.0m. Accordingly, total liquid
financial resources at the disposal of Austrian Post decreased from
EUR 340.6m as at December 31, 2008 to EUR 262.6m as at June 30, 2009,
which includes the second-quarter 2009 payment of the dividend for
the 2008 financial year. As opposed to total liquid financial
resources, the financial liabilities only amount to EUR 132.5m.

Cash flow Total operating cash flow before changes in working capital
amounted to EUR 82.7m, which includes ascertainable recession-related
effects as well as the lower number of working days. The decline in
letter mail and parcel volumes was reflected in a drop in total
revenue.

The cash flow from changes in working capital amounted to EUR -23.8m
in H1 2009, including increased receivables and a reduction in
liabilities and provisions. On balance, the cash flow from operating
activities totalled EUR 58.9m in the first six months of 2009.

The cash flow from investing activities at EUR -48.3m includes the
purchase of property, plant and equipment (CAPEX) amounting to EUR
37.6m, as well as financial investments in securities, at EUR 24.7m.
All in all, the free cash flow generated before financial investments
in securities totaled EUR 35.3m.

Employees During the period under review, the average number of
full-time employees at Austrian Post fell by 3.3%, or 889 people, to
25,900. This decline can be mainly attributed to the lower number of
employees working for the Mail Division. Most of Austrian Post's
labour force (21,591 full-time equivalent employees) is employed by
the parent company, Österreichische Post AG. The remaining staff of
more than 4,300 employees is employed at subsidiaries.

Outlook 2009 The first six months of 2009 have already demonstrated
that a more difficult economic environment is to be expected for the
year as a whole than originally forecasted at the beginning of the
year. Economic forecasts for the markets in which Austrian Post
operates have been continually revised downwards. In December 2008,
the Austrian Institute of Economic Studies (WIFO) and Institute for
Advanced Studies (IHS) predicted negative growth rates in Austria of
-0.5% and -0.1% Austria respectively. In the meantime, the most
recent forecasts expect a contraction of -3.4% or -4.3%. Austrian
Post is also affected by the consequences of this economic downturn.
We expect that the deteriorating economic situation will continue to
have a negative effect on letter mail, parcel delivery and direct
mail volumes.

Negative growth influences letter mail and parcel delivery volumes of
Austrian Post late in the business cycle. This was demonstrated by
the 2.4% drop in revenue in the first quarter of 2009 and the 4.8%
decline in the second quarter. Compared to the previous year also in
the second half of 2009, mail volumes are expected to continue
declining. It is anticipated that the current state of affairs will
persist and that the current downward trend has probably not yet
bottomed out.

For this reason, the efficiency enhancement and cost reduction
programme will remain the top priority for Austrian Post. The
measures which have already been initiated to counteract the economic
crisis will continue to be implemented and intensified. The company
should succeed in compensating for salary increases in 2009 and
correspondingly reducing staff costs by exploiting the process of
employee fluctuation and not filling job vacancies. The collective
wage agreement valid for new employees as of August 1, 2009 will also
positively support these efforts. Further savings in operating costs
(excluding staff costs) are also planned. Austrian Post aims to cut
the total costs of raw materials, consumables and services used and
other operating expenses by at least EUR 30m below the comparable
level for 2008. In addition, as already announced, planned capital
expenditure (CAPEX) will be cut back by 20% in 2009 as a whole, to
EUR 80m.

Performance of divisions Mail Division External sales of the Mail
Division fell 4.5% in the first half of 2009 from the comparable
period of 2008, to EUR 688.4m. This decline resulted from the
economic slowdown, the electronic substitution of letter mail as well
as the fewer working days than in the first six months of the
previous year.

Revenue generated by the Letter Mail Business Area was down by 4.8%,
or EUR 18.7m. This development demonstrates that many companies are
accelerating the ongoing substitution of letters by electronic media
as a response to the unfavourable cyclical situation. In particular,
there has been a reduction in mail volumes in the telecommunications
segment, whereas mail volumes in the financial services sector have
remained relatively constant. In addition, a decline in international
mail as well as the lower number of working days in the first half of
2009 compared to the previous year also had a detrimental effect on
business.

The revenue achieved by the Infomail Business Area (addressed and
unaddressed direct mail items) was also lower than in H1 2008,
decreasing by 4.9%, or EUR 12.8m. This downward trend can be
attributed to the general decline in advertising expenditures. The
number of addressed direct mail items has declined, especially from
mail order companies. Planned mailings have been reduced, delayed or
completely cancelled.

The reduction in direct mail items has also had a negative effect on
the revenue development of meiller direct, which specialises in
printing services and document management. In contrast, the total
volume of unaddressed direct mail items has remained relatively
constant.

Due to the prevailing cyclical downturn in the business volume
generated by daily newspapers and weekly magazines, the Media Post
Business Area also posted a decline in revenue, which fell 0.9%, or
EUR 0.6m, in the first half of 2009.

On balance, the Mail Division generated an EBITDA of EUR 132.9m,
whereas EBIT in H1 2009 amounted to EUR 114.5m, a decrease of 15.6%,
or EUR 21.2m, from the comparable period of the previous year.

Parcel & Logistics Division In the first half of 2009, external sales
of the Parcel & Logistics Division declined by 3.0%, to EUR 371.1m,
which is mainly related to recessionary trends in core markets.
Moreover, downward pressure on prices and a volume decline have been
perceptible in all markets.

The premium parcel service (parcel delivery within 24 hours) was the
biggest contributor to the total revenue of the Parcel & Logistics
Division, accounting for revenue of about EUR 305m. Although the
cyclically-related decline in business was more modest than in many
other logistics segments, such as in the freight or express
businesses, revenue of the premium parcel service fell by 4.8% in the
first half of the 2009 financial year.

From a regional perspective, the subsidiary trans-o-flex in Germany
accounted for the largest revenue contribution, or about 75% of
premium parcel revenue. This was followed by the Austrian market
(9%), which featured ongoing growth in B2B parcel volumes, South East
Europe (9%) and the trans-o-flex companies in the Netherlands and
Belgium (7%).

Total revenue generated by the standard parcels segment in Austria
rose 2.3%, to about EUR 62m. Since June 1, 2009, Austrian Post has
been responsible for the parcel volumes of the newly won customer
Hermes, which positively contributes to this development.

EBIT of the Parcel & Logistics Division in H1 2009 amounted EUR
-3.4m, and was thus below the comparable level of the previous year.
This can be mainly attributed to the recession-related price and
volume pressure, and the resulting negative effects on Group
subsidiaries.

Branch Network Division During the first six months of 2009, external
sales of the Branch Network Division climbed by 1.3% compared to H1
2008. This improvement is primarily related to sales growth for
mobile telephony and fixed line products.

The financial services segment also showed a gratifying development.
The volume of savings deposits increased, as did investments in
securities.

The change of internal sales of the Branch Network Division, which
fell by 8.9%, is attributable to the decrease in philately sales,
which climbed in the previous year as a result of positive one-off
effects, for example UEFA EURO 2008, and the decline in letter mail
and parcel volumes in the branch network. These developments
represent recession-related decreases along with the effects of lower
mail volumes resulting from the increased pick-up of letter mail from
large customers.

EBIT of the Branch Network Division fell to EUR -4.0m, down from EUR
6.7m in the first half of the preceding year. This is mainly the
consequence of lower internal sales. The planned savings potential
could only be partially realised due to the delay imposed by public
authorities in converting small, unprofitable company-operated
branches to partner-operated postal service points. About 100 post
offices out of the originally planned total of 300 unprofitable
company-operated branches will be converted into partner-operated
postal partners in the months of July and August 2009. Austrian Post
plans to convert further branches. However, this process has been
delayed until the end of September 2009 by an official ruling handed
down by the Federal Ministry of Transport, Innovation and Technology.

The Half-Year Financial Report 2009 is available on the Internet at:
www.post.at/ir --> Publications --> Financial Reports

Vienna, August 13, 2009

end of announcement euro adhoc
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ots Originaltext: Österreichische Post AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Mr. Harald Hagenauer

Head of Investor Relations

Tel.: +43 57767-30400

harald.hagenauer@post.at

Mr. Marc Zimmermann

Head of Group Communications

Tel.: +43 577 67-22626

marc.zimmermann@post.at

Mr. Michael Homola

Press Spokesman

Tel.: +43 577 67-32010

michael.homola@post.at

Branche: Transport
ISIN: AT0000APOST4
WKN: A0JML5
Index: ATX Prime, ATX
Börsen: Wien / stock market