EANS-Adhoc: Österreichische Post AG /

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15.03.2011

AUSTRIAN POST 2010:
INCREASED IN REVENUE ON A COMPARABLE BASIS AND HIGHER EARNINGS (EBIT
+5.0%)
DIVIDEND PROPOSAL OF EUR 1.60/SHARE

- Higher revenue
- Revenue up 0.3% from the previous year on a comparable basis
- Mail Division -0.5%, Parcel & Logistics +4.4%
- Increased earnings
- EBITDA of EUR 262.1m (margin of 11.1%)
- EBIT +5.0% to EUR 156.9m
- Free cash flow enables attractive dividends
- Free cash flow of EUR 153.6m (EUR 2.3 per share)
- Dividend proposal to the Annual General Meeting: EUR 1.60 per share
- Outlook 2011 with growth target
- Goal to achieve 1% to 2% revenue growth in 2011
- EBITDA margin at the upper end of the targeted range of 10% to 12%

AUSTRIAN POST AT A GLANCE
The year 2010 developed very satisfactorily for Austrian Post. This is
reflected in the development of key performance indicators as well as the fact
that the underlying strategy proved to be successful. The trend towards
declining addressed letter mail volumes was more than compensated by additional
revenues, particularly in the parcel & logistics business. Total revenue of
Austrian Post rose 0.3%, to EUR 2,351.1m, adjusted on a comparable basis to
take account of the changed reporting of pre-paid telephone cards. Accordingly,
the company´s business operations in 2010 returned to a growth path earlier
than expected.

Revenue of the Mail Division fell by only 0.5% in 2010. The trend towards
electronic substitution of letters continued, along with the drop in high value
mail items. Intensive customer acquisition efforts combined with positive one-
off effects, such as numerous elections and one additional working day in 2010,
managed to counteract this trend together with the positive development for
advertising mail.

The Parcel & Logistics Division showed a positive development in 2010. Although
the price situation remained tense, the division succeeded in increasing parcel
volumes as well as attracting new customers. On this basis, total revenue not
only increased 4.4%, including 9.6% growth in Austria and 8.5% in Germany, on a
comparable basis, but most importantly, Austrian Post succeeded in improving
EBIT from minus EUR 9.3m in the prior year to EUR 10.5m in 2010, thereby
achieving an earnings turnaround.

The development of the Branch Network Division reflects changed consumer
behavior, as demonstrated by the overall decline in letter mail volumes posted
at the branch offices as well as the lower sales of telecommunication products
and banking services. The conversion of the branch network proceeded on
schedule, featuring an increase in the number of postal service points from
1,552 to 1,850 outlets, including 1,117 postal partner offices, up from 418 at
the beginning of 2010.

In the light of external pressure on revenue development, considerable
importance is being attached to cost discipline with respect to staff costs and
operating expenses. Austrian Post succeeded in achieving further cost
reductions in 2010. As a result, earnings before interest and tax (EBIT) rose
by 5.0% to EUR 156.9m. The company´s profitability shown by an EBITDA margin of
11.1%, a solid balance sheet structure and a high free cash flow continue to
serve as the basis for an attractive dividend policy. Accordingly, the
Management Board will propose to the Annual General Meeting to distribute a
dividend of EUR 1.60 per share (+ 6.7%) for the 2010 financial year.

"In continuing to pursue our current business strategy, we will do everything
in our power to compensate for the downward pressure on revenue resulting from
electronic substitution in letter mail by achieving growth in other business
areas", says Austrian Post CEO Georg Pölzl. "On balance, we are aiming to
achieve a revenue growth between 1% and 2% in 2011, and the EBITDA margin
should be at the upper end of our targeted range of 10% to 12%", he adds.

REVENUE DEVELOPMENT BY DIVISION (EURm)
Total revenue* 2009: 2,356.9; 2010: 2,351.1 (-0.2%)
Total revenue on a comparable basis 2009: 2,343.5; 2010 2,351.1 (+0.3%)
Mail 2009: 1,396.8; 2010 1,389.4 (-0.5%)
Parcel&Logistics 2009: 768.4; 2010 802.0 (4.4%)
Branch network* 2009: 189.6; 2010: 157.9 (-16.7%)
Corporate 2009: 4.4; 2010 5.1 (15.7%)
Consolidation 2009: -2.2; 2010: -3.1 (40.5%)
Working days in Austria**: 2009: 251; 2010: 252

*)Reporting of 2009 revenue includes EUR 13.3m in revenue from pre-paid
telephone cards
**)Calendar working days

The development of Austrian Post revenues in 2010 was positive. Austrian Post
succeeded in increasing revenue on a comparable basis by 0.3% or EUR 7.6m, to
EUR 2,351.1m.

In 2009, in line with the original presentation of revenue, EUR 13.3m in
revenue had been reported from sales of pre-paid telephone cards. Whereas the
Mail Division posted the expected decrease in revenue, the Parcel & Logistics
Division continued its steady growth throughout the year, more than
compensating for this decline.
Revenue of the Mail Division fell by only 0.5% in a year-on-year comparison.
The main trends negatively affecting the Mail Division continued, i.e.
electronic substitution of letters, the declining business in high value mail
items and the reduced weight of mail items being posted, leading to a 2.5% drop
in revenue in the Letter Mail Business Area. However, intensive efforts to
attract new customers, positive one-off effects related to elections, an
additional working day in 2010 and the positive development of advertising mail
in the Infomail Business Area (up 1.8%) successfully offset these trends.
The Parcel & Logistics Division featured an ongoing rise in business volume in
2010. Although the price situation remained tense, the division profited from
good volume development as well as an increase in new customers. Despite the
termination of unprofitable transport logistics operations, division revenue
rose by 4.4% year-on-year, and even climbed by 9.6% in Austria. In Germany, the
comparable increase was 8.5%.
The revenue and organisational structure of the Branch Network Division is
undergoing change. Against this backdrop, sales decreased by EUR 31.7m, whereas
total costs were reduced by EUR 34.7m at the same time. The reporting of
revenue in 2009 still included revenue of EUR 13.3m from pre-paid telephone
cards. Internal sales were also down by EUR 13.7m due to the increasing direct
collection of letters and parcels from large customers.

INCOME STATEMENT (EURm)
Revenue 2009: 2,356.9; 2010: 2,351.1 (-0.2%)
EBITDA 2009: 269.2; 2010: 262.1 (-2.6%)
EBIT 2009: 149.4; 2010: 156.9 (5.0%)
Profit after tax = Profit for the period 2009: 79.7; 2010 118.4 (48.5%)
Earnings per share (EUR) 2009: 1.18; 2010 1.75 (48.5%)
It is essential for Austrian Post to continually improve productivity and
efficiency in order to counteract the revenue pressure it faces. Staff costs,
which comprise the largest operating expense item of Austrian Post and account
for about 50% of revenue, amounted to EUR 1,120.7m, a reduction of 1.6%, or EUR
18.6m, from the prior-year level.
Direct personnel expenditures before restructuring expenses and the provision
for employee underutilisation were reduced by more than EUR 30m compared to the
previous year. Savings were achieved through employee attrition, as well as via
the positive effects of the new collective wage agreement, which came into
effect in August 2009. The average number of employees fell by 952 on a year-on-
year comparison, to 24,969 people. This change is related to diverse
restructuring costs of about EUR 65m, including severance payments for
employees who have accepted the voluntary social plan putting them on temporary
leave until they reach retirement age, as well as termination benefits and
provisions for restructuring.
Earnings before interest, tax, depreciation and amortisation (EBITDA) of
Austrian Post amounted to EUR 262.1m in 2010. Accordingly, the EBITDA margin
was 11.1%, once again in the targeted range of 10-12%. Earnings before interest
and tax (EBIT) of Austrian Post improved by 5.0% to EUR 156.9m in 2010 due to
the fact that the revenue drop was more than compensated by cost savings. The
EBIT margin was 6.7%.

Since the start of the 2010 financial year, voluntary severance payments have
been assigned to the particular division in which they arose, whereas the
benefits had been previously recognised in the "Corporate" segment. For better
comparability, the development of divisional earnings before these expenses is
presented here: the Mail Division generated an EBIT increase of EUR 17.1m in
2010 to EUR 238.2m. EBIT of the Parcel & Logistics Division rose by EUR 20.3m
to EUR 11.0m, whereas EBIT of the Branch Network Division amounted to minus EUR
20.2m, a decline of EUR 11.0m. On balance, voluntary severance payment expenses
at Austrian Post totalled EUR 17.8m, of which the largest share or EUR 10.6m
was allocated to the Branch Network Division.
EBIT of the "Corporate" segment before voluntary severance payment expenses
changed from minus EUR 44.2m to minus 54.3m. This encompasses, amongst other
items, non-allocated costs for central departments, expenses in connection with
unused properties as well as the change in staff-related provisions. The
reduction in earnings was primarily influenced by the restructuring provisions
relating to the redimensioning of the Branch Network.
The other financial result of Austrian Post declined to minus EUR 8.2m in 2010,
compared to minus EUR 24.6m in 2009. The financial result in the previous year
included an impairment loss of EUR 20.0m relating to Austrian Post´s
shareholding in BAWAG P.S.K.
Earnings before tax increased from EUR 124.8m to EUR 148.7m. After deducting
income taxes totalling EUR 30.3m, the Group net profit (profit after tax for
the period) amounted to EUR 118.4m, corresponding to earnings of EUR 1.75 per
share for the 2010 financial year. This was in comparison to earnings of EUR
1.18 per share for 2009.

SOLID BALANCE SHEET WITH HIGH CASH AND CASH EQUIVALENTS
Austrian Post pursues a risk-averse business approach. This is demonstrated by
the high equity ratio, the low level of financial liabilities and the solid
level of cash and cash equivalents. On balance, Austrian Post had cash and cash
equivalents of EUR 313.1m as at December 31, 2010, and financial investments in
securities amounting to EUR 48.3m. Accordingly, financial resources at the
disposal of Austrian Post rose from EUR 350.5m to EUR 361.3m in 2010. Financial
liabilities only amounted to EUR 79.1m.

CASH FLOW
The comparability of cash flows in the 2009 and 2010 financial years is limited
due to non-recurring effects. These years were subject to varying tax payments
as well as the reclassification of non-current provisions as liabilities and
current provisions. These changes were the underlying reason for the
simultaneously strong increase in the cash flow from changes in working capital
to EUR 44.9m in 2010.
On balance, the cash flow from operating activities totalled EUR 178.9m in
2010, compared to EUR 230.0m in 2009. Excluding the tax expense, which was
affected by high non-recurring effects in 2010, the cash flow from operating
activities before tax amounted to EUR 240.8m, compared with EUR 254.8m in 2009.
This difference includes higher financial resources required for restructuring
costs in 2010.
The total free cash flow was EUR 153.6m. The proposed dividend payment of EUR
1.60 per share represents a total dividend payout of EUR 108.1m.

EMPLOYEES
During the period under review, the average number of full-time employees at
Austrian Post fell by 3.7% from the prior-year figure, or 952 people, to
24,969. The workforce at all divisions declined with the exception of the
Parcel & Logistics Division. Most of Austrian Post´s labour force, namely
20,695 full-time equivalent employees, works for the parent company,
Österreichische Post AG. Close to 4,300 people are employed by subsidiaries.

OUTLOOK
Austrian Post expects the same international macroeconomic trends prevailing in
2010 to continue in 2011. The electronic substitution of letters, effects
arising from postal market liberalisation and volume growth for parcel services
will continue to have a major impact on business development.
The company also expects the volume of addressed letter mail to decline by 3-5%
in Austria in line with international trends. This will be primarily driven by
electronic substitution of letters along with the trend towards higher direct
mail volumes.

Due to improved international economic conditions, growth of over 6% p.a. is
expected in the Parcel & Logistics Division on a medium-term basis and also in
the 2011 financial year.

Based on these volume estimates, Austrian Post is aiming to achieve Group
revenue growth of 1-2% in 2011. Taking account of the at equity consolidation
of its 65% stake in the joint venture MEILLERGHP, it should be possible on a
comparable basis to compensate for the volume pressure arising from the
electronic substitution of letters.

Within the context of its strategy programme, a series of operational measures
will continue to be implemented in order to drive up revenue by exploiting
growth opportunities and also realise cost savings. The aim is to maintain the
high profitability of the company and achieve a sustainable EBITDA margin of 10-
12% each year. This range will also apply in 2011. The upper part of this scale
is the objective of Austrian Post following the change in consolidation for the
company MEILLERGHP.

The operating cash flow generated by Austrian Post will continue to be used
mainly to finance futureoriented investments and dividend payments. In terms of
its financing requirements, Austrian Post anticipates total capital expenditure
to reach a level of about EUR 80-90m per annum. in the years to come. This will
primarily focus on replacement investments in existing facilities as well as in
new and more efficient sorting facilities. The top priority in the company´s
international business will be to enhance performance and expand existing
networks. Potential acquisitions will only take place in the core business
areas of Austrian Post, and only for companies with growth-oriented business
models. No major acquisitions are expected at the present time.

The Management Board of Austrian Post will propose to the upcoming Annual
General Meeting scheduled for April 28, 2011 to distribute a dividend of EUR
1.60 per share. The current attractive dividend policy will be continued in the
medium term based on a solid balance sheet structure and cash flow generation.
Austrian Post aims to achieve a dividend payout ratio to shareholders of at
least 75% of the Group net profit assuming a continuation of the company´s good
business development. The dividend should develop further in line with
profitability.

PERFORMANCE OF DIVISIONS
MAIL DIVISION
External sales of the Mail Division in 2010 fell by 0.5% from the comparable
period of 2009 to EUR 1,389.4m and thus showed a better development than
initially expected at the beginning of the year. Intensive customer acquisition
efforts combined with positive one-off effects such as numerous elections and
one additional working day in 2010 managed to minimise the volume decline
caused by the electronic substitution of letters.
Revenue generated by the Letter Mail Business Area declined as expected, down
2.5% or EUR 18.9m from the prior-year period. The trend towards the
substitution of letters by electronic media is continuing, for example in the
customer segments of financial services and telecommunications. A decline was
also evident in other areas as well as in the public sector, which cut back on
the number of registered letters it posted. The mailing of passports and
national insurance cards comprised positive one-off effects.

In contrast, revenue achieved by the Infomail Business Area (addressed and
unaddressed direct mail items) in 2010 rose by 1.8% or EUR 9.6m compared to the
previous year´s level. Efforts to acquire new customers were successful, and
were thus able to compensate for the loss of large customers in 2009. Positive
impetus came from mail order houses and elections in the year 2010. On balance,
the Infomail Business Area registered a positive volume development albeit with
lower average weights of mail items. In terms of revenue, the business
development of the direct mail producer meiller direct was virtually stable.
The company was brought into a joint venture with Swiss Post at the end of
2010. The newly established company MEILLERGHP, in which Austrian Post holds a
65% stake, is consolidated at equity as of December 20, 2010.
Revenue of the Media Post Business Area increased by 1.4% or EUR 1.9m due to
the growing business volume generated by company magazines and the effects of
regional elections.

All in all, the Mail Division posted an EBITDA before voluntary severance
payment expenses of EUR 278.2m in 2010, a rise of 2.6% from the comparable
period of the previous year. EBIT before these expenses climbed by 7.7% to EUR
238.2m. This earnings improvement is primarily related to efficiency increases.
Both operating expenses and staff costs could be reduced. Voluntary severance
payment expenses amounted to EUR 3.3m.

PARCEL & LOGISTICS DIVISION
In 2010, external sales of the Parcel & Logistics Division climbed by 4.4% to
EUR 802.0m as a result of good volume development. The parcel and logistics
market showed an overall trend towards positive volume growth although price
pressure remained intense.
The premium parcel product segment (parcel delivery within 24 hours) generated
total revenue of EUR 630.5m in 2010. This corresponds to a 1.0% rise, which was
negatively affected by the termination of loss-making transport logistics
operations in Germany in the middle of 2009. The adjusted revenue in this
product segment in Germany shows a volume increase of 8.5% year-on-year, which
is mainly related to new customer acquisition. The subsidiary trans-o-flex in
Germany accounted for approximately three quarters of premium parcel revenue.
The business parcel segment in Austria, where Austrian Post enjoys a 15% market
share, and in South East and Eastern Europe also continued to develop very
positively.
The standard parcels segment in Austria posted an even higher growth rate, with
revenue rising by 19.5% to EUR 160.8m. The main reasons for this positive
development were organic growth, the increased mail order business since June
2009 as well as parcel volumes shifted from the premium to the standard
segment.
There was a clear turnaround in the performance of the Parcel & Logistics
Division. In 2010, EBIT before the voluntary severance payment expenses rose to
EUR 11.0m, up EUR 20.3m from the previous year.

BRANCH NETWORK DIVISION
The organisation of the branch network of Austrian Post is undergoing change,
which impacts revenue development as well as the cost structure. External sales
of the Branch Network Division fell by EUR 31.7m in 2010, whereas total costs
were reduced by EUR 34.7m.

In line with the original reporting of revenue, EUR 13.3m in revenue derived
from pre-paid telephone cards was included in 2009. During the 2009 financial
year, the nominal value of pre-paid telephone cards was recognised as revenue,
whereas the related costs of the goods sold were reported as raw materials,
consumables and services used. Since January 1, 2010, only the commission
derived from pre-paid telephone cards sales is recognised. Moreover, sales of
retail products declined in 2010. In particular, telecommunications products in
the field of mobile telephony are subject to market saturation.

Financial services and the related commissions earned also showed a downward
trend, which is attributable to reduced margins and the related low interest
rate environment at the present time.
Internal sales with postal services also further decreased, and were down by
7.4% or EUR 13.7m. There has been a fundamental reduction in the volume of
letters posted and subsequently transported by the branch network. Moreover,
letters are increasingly being picked up directly from customers within the
context of the enhanced services offered by Austrian Post.
However, the service and cost structure of the branch network is being
continually improved as a result of the restructuring of the Branch Network
Division. Unprofitable company-operated branches in Austria are being converted
by Austrian Post into partner-operated postal service points. In 2010, Austrian
Post increased the total number of postal service points from 1,552 to 1,850,
which included the rise of third party operated postal service points from 418
to 1,117.

At the end of 2010, the strategic partnership of Austrian Post with its banking
partner BAWAG P.S.K. was put on a new footing. Both companies are focusing on
their core competencies, and alternately make use of the other partner´s
network. In the future, customers will be able to take advantage of the entire
product and service portfolio of BAWAG P.S.K. and Austrian Post at more than
500 locations.

EBIT of the Branch Network Division before the voluntary severance payment
expenses amounted to minus EUR 20.2m in 2010, down from minus EUR 9.2 in the
comparable period of 2009. The workforce of the Branch Network Division was
reduced by 445 employees compared to the prior-year period. Due to the
restructuring, voluntary severance payment expenses amounted to EUR 10.6m.

Vienna, March 15, 2011

The Annual Report 2010 is available in the internet: www.post.at/ir/en ->
Publications --> Financial Reports

Der Geschäftsbericht 2010 ist im Internet unter www.post.at/ir -> Publikationen
--> Finanzberichte verfügbar.

Further inquiry note:
Austrian Post
Head of Investor Relations
Mr. Harald Hagenauer
Tel.: +43 (0) 57767 - 30400

Head of Group Communications
Ms. Ina Sabitzer
Tel.: +43 (0) 57767 - 21763
[email protected]

Group Communication/Press Spokesman
Mr. Michael Homola
Tel.: +43 (0) 57767 - 32010
[email protected]
end of announcement euro adhoc
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issuer:      Österreichische Post AG
             Postgasse 8
             A-1010 Wien
phone:       +43 (0)57767-0
mail:        [email protected]
WWW:         www.post.at
sector:      Transport
ISIN:        AT0000APOST4
indexes:     ATX Prime, ATX

stockmarkets: Regulated free trade: Wien
language: English

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