EANS-Adhoc: Österreichische Post AG / Austrian Post Q1-3 2013: Revenue growth and earnings development in the first nine months; outlook for 2013 confirmed

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Financial Figures/Balance Sheet/9-month report
14.11.2013

- Stable market environment - Satisfactory mail business in
Austria, positive revenue effects due to elections - Ongoing robust
growth in the Austrian parcel market - Strong competition in the
international parcel business - Higher revenue - Revenue increase
Q1-3 of 1.7% (excl. Benelux) - Slight growth in both the mail and
parcel business (excl. Benelux) - Increased earnings - Non-cash
balance sheet measures in the third quarter - Slightly improved
EBIT Q1-3 of EUR 131.5m in spite of impairment losses - Outlook for
2013 confirmed - Stable or slightly positive revenue development
expected - Goal of earnings improvement

OVERVIEW OF AUSTRIAN POST The positive development during the first
half of 2013 continued in the third quarter of the year. Accordingly,
total revenue of Austrian Post in the first nine months of the
current financial year, adjusted to take account of the disposed
Benelux subsidiaries, increased by 1.7% from the previous year. In
particular, the mail business developed very gratifyingly,
benefitting in part from special effects. In addition to the revenue
contributions of the newly acquired companies in Central and Eastern
Europe, parliamentary elections and several regional elections and
referendums generated additional revenue. At the same time, the
structural trend of declining letter mail volumes as a consequence of
electronic substitution is continuing. Moreover, the advertising
spending of several customer sectors remains restrained due to slow
economic momentum. The Austrian parcel business, in turn, continues
to profit from the online shopping boom. As a result, both the
private and business customer segments once again posted growth
during the period under review.

The situation in the international parcel and logistics business is
more difficult. In particular, the German trans-o-flex Group is
subject to strong competition and high price pressure. This also
turns out to be the reason for a special effect which impacted the
earnings situation of the Group in the reporting period. In light of
the challenging market environment which trans-o- flex Group faces,
and the reduced earnings situation, an impairment loss on goodwill of
EUR 27.0m was reported in the third quarter of 2013. On an
operational level, within the context of a far-reaching earnings
improvement programme, external services at important locations are
being reintegrated in order to sustainably improve the earnings
situation.

In addition to the non-cash effect of the above-mentioned impairment
on goodwill, there were also positive special effects such as the
added revenue generated by the election year 2013 and a decline in
the provisions required in the third quarter. As a result, earnings
before interest and tax (EBIT) of Austrian Post improved slightly to
EUR 131.5m. The earnings per share at EUR 1.54 also surpassed the
prior-year level. "Based on these results, we can confirm our outlook
for the 2013 financial year. Revenue should remain stable or increase
slightly, and we are striving to improve EBIT", says Austrian Post
CEO Georg Pölzl.

In order to achieve these targets, great importance will be attached
to cost discipline and efficiency enhancement throughout the Group
also in the future, which will simultaneously push ahead with efforts
to modernise business processes. Austrian Post also wants to exploit
opportunities in promising markets. An important milestone was
recently achieved in this regard with the acquisition of a 25% stake
in Aras Kargo a.s. enabling the company's entry into the Turkish
parcel market. In order to further enhance our level of service, the
focus of all activities will be persistently oriented to the needs of
our customers.

REVENUE DEVELOPMENT IN DETAIL In the first three quarters of 2013,
Austrian Post's reported revenue totalled EUR 1,734.2m, an increase
of 0.7% from the comparable prior-year period. Adjusted to take
account of the revenue of EUR 17.3m generated by the disposed and
deconsolidated subsidiaries in the Benelux region in the first half
of 2012, the revenue increase in the first three quarters of 2013
amounted to 1.7%.

Revenue of the Mail & Branch Network Division rose by 1.5%, or EUR
16.5m, to EUR 1,107.7m. On the one hand, this gratifying development
can be attributed to the consolidation of new subsidiaries in Poland,
Romania and Bulgaria (EUR 17.5m). On the other hand, the revenue
increase is also due to the positive impetus provided by elections
and referendums held in Austria during the first nine months of 2013.
In addition, services offered in the field of Mail Solutions also
posted growth during the reporting period. Before special effects,
the trend towards declining mail volumes and restrained advertising
spending led to a revenue decline in the mail business of about 2.5%.

In the Parcel & Logistics Division, revenue in the first three
quarters of 2013, adjusted to take account of the disposed
subsidiaries in the Benelux region, rose by 2.1% to EUR 627.5m. From
a regional perspective, the Austrian parcel market generated the
strongest growth, with revenue up 9.6%, whereas revenue

declined in Germany by 2.1%.

REVENUE BY DIVISION*
Change
EUR m Q1-3 2012 Q1-3 2013 % EUR m Q3 2012 Q3 2013
Total revenue 1,722.9 1,734.2 0.7% 11.3 549.8 561.1
Revenue excl. Benelux
subsidiaries** 1,705.7 1,734.2 1.7% 28.5 549.8 561.1
Mail & Branch Network 1,091.2 1,107.7 1.5% 16.5 349.6 353.1
Parcel & Logistics 632.0 627.5 -0.7% -4.5 201.1 208.5
Parcel & Logistics excl.
Benelux subsidiaries** 614.7 627.5 2.1% 12.7 201.1 208.5
Corporate 10.6 5.1 -52.5% -5.6 5.3 1.3
Consolidation -10.9 -6.0 44.8% 4.9 -6.2 -1.8
Calendar working days in

Austria 188 188 - - 64 65

* External sales of the divisions ** The closing of the disposal of
trans-o-flex Nederland B.V. took place as of March 15, 2012, for
trans-o-flex Belgium B.V.B.A as of May 31, 2012

INCOME STATEMENT The positive revenue development of the Group
included increases in Austria and in South East and Eastern Europe,
whereas revenue declined in the German parcel and logistics business,
which is characterised by a high share of external transport
services. This is the underlying reason for the decrease in operating
expenses for raw materials, consumables and services used, which fell
by 1.1% to EUR 556.5m.

Staff costs were down slightly by 1.3% year-on-year to EUR 784.4m.
This figure encompasses all operational staff costs as well as
non-operational staff costs in the Group, which are primarily
designed to enable a sustainable improvement in the cost structure,
such as severance payments, restructuring measures and provisions.

Operational staff costs amounted to EUR 764.4m in the first three
quarters of the year, equivalent to a slight rise of 0.5%.
Non-operational staff costs totalled EUR 19.9m in the nine months of
2013 compared to the prior-year level of EUR 34.0m. In addition to
ongoing severance payments, this figure also includes changes in
provisions. Due to the continuing reduction in the workforce, the
need for provisions for employee under-utilisation decreased in
comparison to 2012. Accordingly, this provision fell by a total of
EUR 16.3m in the third quarter of 2013. As a consequence, total
provisions for employee under-utilisation have dropped since the
beginning of 2013 from EUR 229.1m to EUR 217.8m.

The results of the investments consolidated at equity amounted to
minus EUR 4.9m in the first three quarters of 2013. The comparable
prior-year results of minus EUR 12.1m included the impairment loss of
EUR 9.6m reported for Austrian Post's stake in the company
MEILLERGHP, which is consolidated at equity.

In the first three quarters of 2013, earnings before interest, tax,
depreciation and amortisation (EBITDA) of Austrian Post Group
increased to EUR 222.6m. The rise of EUR 29.4m is mainly the result
of the previously-mentioned reduced need for staff-related provisions
to the amount of EUR 16.3m in the third quarter of 2013. As a
consequence of this special balance sheet measure, the EBITDA margin
improved to 12.8%.

On balance, depreciation, amortisation and impairment losses totalled
EUR 91.0m during the period under review. This includes the
impairment loss on goodwill for the German trans-o-flex Group.
Goodwill on the balance sheet of Austrian Post was written down by
the amount of EUR 27.0m to EUR 84.4m, which is related to the
intensely competitive market situation and the reduced earnings
situation. These two non-cash special balance sheet measures with
respect to staff costs and depreciation, amortisation and impairments
resulted in earnings before interest and tax (EBIT) of EUR 131.5m,
slightly higher than in the first three quarters of the previous
year.

EBIT BY DIVISION

EUR m Q1-3 2012 Q1-3 2013 Change Q3 2012 Q3 2013
adjusted* % EUR m adjusted*
Total EBIT 131.0 131.5 0.4% 0.5 36.3 33.2
Mail & Branch
Network 193.4 208.8 8.0% 15.4 56.3 66.9
Parcel & Logistics 17.0 -14.4 - -31.3 5.3 -26.8
Parcel & Logistics
before impairments 17.0 12.6 -25.6% -4.3 5.3 0.2
Corporate -78.7 -63.0 19.9% 15.7 -24.8 -7.0

* Adjusted due to the application of IAS 19; refer to Note 1. Summary
of Accounting Principles

From a divisional perspective, the company's earnings situation is
also impacted by the above-mentioned special balance sheet measures.
The Mail & Branch Network Division generated an EBIT of EUR 208.8m, a
rise of EUR 15.4m. This increase can be attributed to the positive
revenue effects in the election year 2013 as well as the fact that
earnings in the prior-year period were negatively impacted by an
impairment loss of EUR 9.6m recognised for Austrian Post's stake in
MEILLERGHP, which is consolidated at equity.

EBIT of the Parcel & Logistics Division in the first three quarters
of 2013 amounted to minus EUR 14.4m. However, after taking account of
the EUR 27.0m impairment loss on goodwill for the trans-o-flex Group,
operating EBIT totalled EUR 12.6m. These earnings also include
additional one-off effects of EUR 5.1m, primarily for write-downs on
receivables in the third quarter of 2013. The earnings improvement
programme in the trans-o-flex Group includes the selective
reintegration of external services at important locations. The
underlying objective is to improve the cost structure throughout the
entire network. In addition, market opportunities will be exploited
by a stronger focus on pharmaceuticals and health care on the basis
of the EU's new Good Distribution Practice (GDP) guidelines.

The Corporate segment basically encompasses costs for central
departments in the Group as well as staff-related provisions. The
above-mentioned reduced need for provisions for employee
under-utilisation to the amount of EUR 16.3m in the third quarter of
2013 resulted in an improved EBIT of minus EUR 63.0m compared to
minus EUR 78.7m in the comparable prior-year period.

After deducting income taxes, the Group net profit (profit after tax)
in the first three quarters of 2013 amounted to EUR 104.9m, a rise of
6.0% from the results of the prior-year period. Following the
deduction of the profit for the period attributable to
non-controlling interests, this corresponds to undiluted earnings per
share of EUR 1.54, an increase of 5.2%. In the third quarter earnings
per share amounted to EUR 0.42 after EUR 0.39 EUR in the previous
year.

CASH FLOW In the first nine months of 2013, operating cash flow
before changes in working capital totalled EUR 236.8m, slightly above
the prior-year level. On balance, the changes in net working capital
totalled minus EUR 65.0m during the period under review. As a result
of this development, the cash flow from operating activities amounted
to EUR 171.7m, nearly identical to the comparable prior-year figure.

The cash flow from investing activities of minus EUR 152.5m in the
first three quarters of 2013 was primarily impacted by higher cash
outflows for acquisitions and capital expenditures. Payments for the
purchase of property, plant and equipment (CAPEX) totalled EUR 63.4m
during the period under review, including investments of EUR 10.8m
relating to the new logistics centre in Upper Austria which will be
completed by the middle of 2014. In addition, cash outflows of EUR
71.5m related to acquisitions. EUR 50m of this related to the
acquisition of a 25% stake in the Turkish company Aras Kargo a.s.
Moreover, there was a change in cash flow relating to the securities
portfolio, which shifted investments of cash and cash equivalents at
the amount of EUR 20.9m to medium-term securities. On balance, free
cash flow before acquisitions and securities totalled EUR 109.1m in
the first three quarters of 2013.

EMPLOYEES The average number of full-time employees at the Austrian
Post Group totalled 24,257 people in the first nine months of 2013.
This comprises an increase of 996 employees from the prior-year
period, about 1,600 of whom can be attributed to the newly acquired
subsidiaries in Austria, Poland, Bulgaria and Romania. Most of
Austrian Post's staff is employed by the parent company
Österreichische Post AG (a total of 19,096 full-time equivalents).
Austrian Post has been offering a banker training programme in
cooperation with BAWAG P.S.K. since 2009. This was complemented in
September 2011 by a new training programme for aspiring retail
salespeople.More than 20 trainees are currently concluding their
vocational training. 30 new trainees will be enrolled in Vienna, Linz
and Graz in 2014.

OUTLOOK FOR 2013 Austrian Post confirms its outlook for the entire
year 2013. A stable or slightly positive revenue development is
expected for the 2013 financial year. The basic trends impacting the
mail and parcel businesses will continue.

Revenue in the mail segment is primarily impacted by the ongoing
volume decline of traditional addressed letter mail due to electronic
substitution, which is likely to amount to 3-5% p.a., reflecting
international trends. The market for addressed and unaddressed direct
mail items is anticipated to remain weak as a consequence of slow
economic momentum. The positive volume effects related to various
elections and referendums in Austria will no longer have an impact in
the fourth quarter of 2013. The parcel business should continue to
profit from growth in the private customer segment, whereas the
intensive level of competition in the business customer segment is
expected to continue, especially in the German market.

Enhancing the profitability of the services offered will continue to
be a key focal point of the Group's mail and parcel operations. For
this reason, Austrian Post will maintain its efforts to promote
efficiency increases in the Group. Austrian Post remains committed to
its goal to improve earnings before interest and tax (EBIT) in 2013.
For the medium-term, Austrian Post confirms the targeted EBITDA
margin in the range of 10-12%.

The operating cash flow generated by Austrian Post will continue to
be used prudently and in a targeted manner to finance sustainable
future-oriented investments. Total capital expenditure is expected to
reach a level of about EUR 90m in 2013, mainly focusing on the
replacement of existing facilities and thus their continuous
modernisation and efficiency enhancement.

PERFORMANCE OF DIVISIONS MAIL & BRANCH NETWORK DIVISION Divisional
revenue developed very positively in the first three quarters of
2013, increasing by 1.5% to EUR 1,107.7m. This development can be
mainly attributed to the first-time full consolidation of new Group
subsidiaries (EUR 17.5m) and the positive effects of various
elections and referendums in Austria.

Revenue in the field of Letter Mail & Mail Solutions climbed by 1.6%
from the prior-year period, rising to EUR 580.9m. The substitution of
letter mail by electronic media is continuing as before. Such
decreases took place, for example, in the telecommunications customer
segment. In contrast, various elections provided added impetus, due
to the fact that the possibility of voting by absentee ballot has
emerged as a popular instrument of direct democracy. New services
offered in the field of Mail Solutions also posted growth.

Revenue in the field of Direct Mail also increased in the first three
quarters of 2013, climbing by 1.7% to EUR 324.2m. The rise here was
also due to the newly consolidated subsidiaries and the positive
effects of elections on the business. The weaker economy and the
pressure of online business on retail stores have diminished
advertising spending. Media Post revenue rose as well by 1.0% during
the first nine months of 2013 to EUR 103.5m, and Branch Services
revenue was up 1.2% to EUR 99.1m. This can be primarily attributed to
higher sales of mobile telephony products, which compensated for the
decline in financial services.

On balance, EBIT of the Mail & Branch Network Division improved by
EUR 15.4m, which is due to the good revenue development as well as
the impairment loss of EUR 9.6m reported in the previous year on the
company MEILLERGHP, which is consolidated at equity.

PARCEL & LOGISTICS DIVISION External sales of the Parcel & Logistics
Division decreased by 0.7% to EUR 627.5m in the first three quarters
of 2013. However, the prior-year period still included the revenue
achieved by the Benelux subsidiaries disposed of during the first
half of 2012. Adjusted to take account of the former Benelux
subsidiaries, the division actually achieved a 2.1% revenue increase
in a year-on-year comparison. This growth was driven by increases in
Austria and in South East and Eastern Europe. In contrast, revenue
slightly declined in Germany.

Premium Parcels (parcel delivery within 24 hours), which are mainly
used in the business-to-business segment, generated revenue of EUR
474.1m in the first three quarters of 2013, a decrease of 2.0% from
the previous year. This decline is primarily due to the
deconsolidation of the Benelux subsidiaries as well as the downward
trend in Germany. Parcel volumes in the business customer and higher-
value private customer segments in Austria showed above-average
increases.

Standard Parcels, which mainly involve shipments to private
customers, posted growth. Revenue rose by 2.7% to EUR 130.1m. Other
Parcel Services generated revenue of EUR 23.3m during the period
under review. This field includes various additional logistics
services such as fulfilment, warehousing and cash logistics.

The earnings development of the Parcel & Logistics Division was
impacted by special effects relating to the trans-o-flex Group. In
addition to an impairment loss of EUR 27.0m recognised on goodwill,
write-downs of EUR 5.1m were recognised for outstanding receivables.
External services at trans-o-flex are being reintegrated at selected
sites within the context of an earnings improvement programme.
Moreover, a stronger focus will be put on the pharmaceutical and
healthcare market.

For this reason, EBIT of the Parcel & Logistics Division before
impairments was below the prior-year level at EUR 12.6m. Accordingly,
the EBIT margin was 2.0% in the first three quarters of 2013.

The interim report for the first three quarters of 2013 is available
on the Internet: 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

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