Investor Presentation. January 2007

Investor Presentation

Austrian Post – divisional breakdown

Mail

„ Letter

„ Direct mail

„ Newspapers and periodicals

Parcel & Logistics

„ Parcels

„ Express deliveries

Branch Network

„ Postal services

„ Financial and insurance products

„ Retail products

Post: €1,303m Post: €222m Post: €197m

(1) Austrian Post external sales based on IFRS (incl. Others/Consolidation); trans-o-flex total sales based on German GAAP (management reporting).

Pro-forma Group1

Sales Split

Post: €1,727m Mail 60%

Parcel & Logistics 31%

Branch Network 9%

trans-o-flex: €460m Pro-forma: €2,187m

+

„ Development of business operations since June 2006

„ Specialisation in line with trans-o-flex strengths: life sciences, pharmaceuticals and electronics

Netherlands

Regional presence of Austrian Post

Austrian Post will operate in a combined market with a total population of approx.120m people.

Austria

Slovakia

Croatia

„ #2 in B2B parcels

„ #2 in unaddressed direct mail

Germany

„ Leading market position in combined freight and B2B express delivery for life sciences / pharmaceuticals

„ #1 in letter mail

„ #1 in addressed direct mail

„ #1 in unaddressed direct mai

„ #1 in X2C parcels

„ #1 in unaddressed direct mail Hungary

Strengths of Austrian Post

„

Nationwide access: every door, every day

„

Good value for money: high quality at a moderate price level

„

Stable and reliable logistics network in letter mail and parcel business

„

Austrian-wide branch network for retail customers

„

Customer knowledge and customer loyalty

„

High entry barriers for competitors

Three avenues to sustainable value growth

Optimise core

domestic business in a liberalised

market environment

Create new areas of competence

Re-define the

geographical focus

1

2

Highlights Q1-3/2006

„

Revenue increase in all divisions

¾

Mail + 1.9%

¾

Parcel & Logistics + 8.6%

¾

Branch Network + 5.2%

„

Successful acquisitions

¾

Kolos (Slovakia) / Unaddressed advertising

¾

Wiener Bezirkszeitung (Austria) / Media Post

¾

Weber Escal (Croatia) / Unaddressed advertising

¾

Trans-o-flex (Germany) / B2B parcel&logistics

„

Earnings before interest and tax (EBIT) up 26.5% to EUR 93.7m

„

Operating cash flow rose 3.4% to EUR 193.6m

1) Kolos at 30 September; fully-consolidated; Wiener Bezirkszeitung consolidated as an associate company; Weber Escal to be consolidated in 2007 2) Signing per 27 October 2006; Closing of the 75% shareholding expected at the end of 2006.

„ No noticeable effects so far of liberalisation as per 1 January 2006 (50 - 100g)

„ Good business development: Letter Mail business area posted slight decline, as expected, Infomail and Media Post business grew

„ Further international acquisitions following Kolos (Slovakia) – now Weber Escal (Croatia)

„ Market leader in Croatia with 40% market share

„ 90m unaddressed advertising items

„ EU Commission presented draft of a new postal service directive, to be considered by the EU Parliament and the EU Council.

Mail Division

Status Quo of Postal Liberalisation in Europe

Fully liberalised markets

Liberalised markets in accordance with EU guidelines (reserved area <50g)

Countries currently not required to abide by EU regulations

Spain:

Services liberalised between cities

UK:

Since 1.1.2006: full market liberalisation

SWEand FIN: Complete market liberalisation since 1993

Markets liberalised less than prescribed by EU regulations

Bulgaria:

Monopoly : 150g 2007 – 2008: 50g

Liberalisation: next steps

October/November 2006

November/

December 2006 2007

Study of the EU Commission & draft of the 3rd Postal Directive

European wide

liberalization implemented 2009 at the earliest

Negotiations on EU level

2008

New E_U postal directi_ve

Negotiations on national level Amendment to the

Postal Act

New postal_law

p r o b a b l y

-EU Council

(Approval with 72% of votes required) 3rd Postal

Directive Implementation_{in member} states

EU Parliament

Forewarding of directive Draft EU Parliament

Standpoints of other EU postal service providers

La Poste, De Post/La Poste, Magyar Posta, Poste Italiane, Elta Greece, Correos Spain, P&T Luxembourg, Cyprus

Post, Poczta Polska

• Full scope of universal service obligation must be retained

• Core issue: financing of universal postal services (unresolved).

• Financing issue must be resolved before market is liberalised.

• EU-Liberalisation in 2009 (Germany 2008)

• A modern universal postal service should reflect current market

developments.

• Regulations: “Light is right“

Austrian Post:

• Liberalisation when general conditions are met: fair competitive environment (flexibility), same rights for all providers (no asymmetrical market liberalisation)

• Universal services: product-oriented standards for all market participants; universal services oriented to the basic needs of people today

Deutsche Post, TNT, Posten Sweden, Post Finland

„ Growth of parcels business in Austria for private customers; Internet orders as growth driver

„ Parcels for business customers (B2B) – market entry proceeded as planned

„ Very successful cooperation with trans-o-flex (5,000 parcels/day)

„ Acquisition of 74.9% of trans-o-flex a milestone and platform for further growth

Parcel & Logistics Division

Acquisition of trans-o-flex: one of the leading

specialized logistics providers within the German B2B market

„ Attractive business model with combined freight

(parcels and pallets) and recipient-oriented aggregation of shipments

„ Successful niche focus

¾ Life Sciences

¾ Consumer Electronics/Home Entertainment

¾ Lifestyle/Cosmetics

„ Leading market position in the Life Sciences industry

„ Additional special services such as temperature-controlled delivery and transportation of hazardous goods

„ Lean structure with high degree of outsourcing

„ Long-lasting relationships with blue-chip customers

„ Sales of approx. €460 million and EBITDA of approx. €27 million in the twelve months up to and including June 2006

trans-o-flex has a successful industry niche focus

• Pharmaceuticals

• Dental

• Radio pharmaceuticals

• Diagnostics

• Laboratory

Life sciences

• Computer hardware

• Software

• Picture and sound storage mediums

• Consumer electronics

• Office and information technology

Consumer electronics / Home entertainment

• Pharmacy cosmetics

• Perfumes

• Skin care

• Hair care products

Lifestyle / Cosmetics

• Automotive

• Print / publisher

• Food

• Chemical products

• Gardening tools

• Textiles • Tobacco Other 9% 55% 13% 23%

Strong focus on life sciences, consumer electronics/home entertainment and

lifestyle/cosmetics

Blue-chip customer base

trans-o-flex has long-lasting relationships with blue-chip customers

Life Sciences Consumer Electronics/

Home Entertainment Other

Life Style/ Cosmetics

Sales by business area (2005)

„ Ongoing positive business development

„ Retail products:

Strong revenue growth with Mobilcom, Telecom and Internet products

„ Financial services business:

Revenue increase demonstrates clearing up of uncertainties connected with BAWAG P.S.K.

„ Ownership change of BAWAG P.S.K.

„ New owner group led by financial inventor Cerberus

„ Invitation to Austrian Post to acquire a stake

„ 1,300 post branches and 600 external partners

Branch Network Division

Increased revenues and earnings

Revenues (EUR m) EBITDA (EUR m) EBIT (EUR m)

Q1-3 2005 Q1-3 2006 Q1-3 2005 Q1-3 2006 Q1-3 2005 Q1-3 2006

+13.7% _+26.5%

+3.0%

1,233.5

1,271.1

152.6

173.4

74.1

Key business indicators – income statement Q1-3 2005/2006

Business performance Q1-3/2006

EUR m Q1-3

2005

Q1-3

2006 Change in % Q3 2005 Q3 2006

Revenue 1,233.5 1,271.1 +3.0% 397.5 409.7

Raw material, consumables and services used -172.0 -187.4 +9.0% -55.7 -60.9

Staff costs -784.3 -789.4 +0.6% -248.6 -250.0 Other operating expenses -161.5 -161.2 -0.1% -56.1 -54.4

Earnings before interest, tax,

depreciation and amortisation (EBITDA) 152.6 173.4 +13.7% 49.5 55.5

Depreciation and amortisation -78.5 -79.7 +1.5% -31.7 -28.0

Earnings before interest and tax (EBIT) 74.1 93.7 +26.5% 17.8 27.4

EBIT margin 6.0% 7.4% - 4.5% 6.7%

Earnings before tax (EBT) 73.2 97.0 +32.6% 18.5 29.7

Income tax -19.4 -26.3 +35.4% -6.6 -10.6

Profit for the period 63.61) 70.7 +11.2% 11.9 19.1

Key figures by division

EUR m Q1-3

2005

Q1-3 2006

Change

in % 2005 Revenue 1,233.5 1,271.1 +3.0% 1,701.6

Mail 941.1 958.8 +1.9% 1,290.8

Parcel & Logistics 150.5 163.5 +8.6% 211.8 Branch Network 138.2 145.4 +5.2% 193.8 Other/Consolidation 3.7 3.3 -10.9% 5.2

EBIT 74.1 93.7 +26.5% 103.0

Mail 194.8 190.8 -2.1% 268.9

Parcel & Logistics 5.7 15.9 +177,8% 10,4

Branch Network 7.3 8.5 +17.4% 8,7

Other/Consolidation -133.7 -121,4 -9.2% -184.9

Mail Division: key indicators Q1-3/2006

„ Rise in revenues in quarterly comparison, despite one working day less

„ Infomail (addressed and unaddressed advertising) posted solid growth (+7.2%)

„ Media Post achieved significant Q3 climb in revenues (+5.3% in 9 month comparison)

„ Earnings slightly under previous year‘s level due to extraordinary writedown of EUR 6.7m

-2.1% 190,8 194.8 EBIT +1.9% 1008.1 989.5 Total revenue 1)

-1.9% 15,426 15,716 Employees (average/full-time) -18.9% 19.7% EBIT margin 2)

+5.3% 95.8

91.0 - Media Post

+7.2% 298.1 278.1 - Infomail -1.2% 564.9 572.0 - Letter Mail

+1.9% 958.8 941.1 External Sales Change Q1-3 2006 Q1-3 2005 EUR m

External Sales EBIT

-2.1% +1.9%

941,1 958,8

Q1-3 2005 Q1-3 2006

194,8 _190,8

Parcel & Logistics Division: key indicators Q1-3/2006

„ Revenues climbed 8.6% to EUR 163.5m

„ Increased sales volumes in both B2C (Internet mail order business as growth driver) and in the business parcel segment (B2B)

„ Operating result (EBIT) rose to EUR 15.9m

-7.9%

3.1% EBIT margin 2)

+8.5% 199.8

184.1 Total revenue 1)

-8.5% 2,271 2,463 Employees (average/full-time) +177.8% 15.9 5.7 EBIT +8.6% 163.5 150.5 External Sales Change in % Q1-3 2006 Q1-3 2005 EUR m EBIT +8.6% +177.8%

1) External sales plus internal sales per division 2) EBIT refers to total revenues

150,5

163,5

Q1-3 2005 Q1-3 2006

5,7

15,9

Q1-3 2005 Q1-3 2006

Branch Network Division: key indicators Q1-3/2006

„ Continual improvement in revenues

„ Very positive development in retail products business (telecommunications)

„ Growth in financial services compared to same period in 2005

„ EBIT rose to EUR 8.5m despite extraordinary writedown of EUR 3.4m

-2.8%

2.5% EBIT margin 2)

+5.2% 145.4 138.2 External Sales +2.2% 300.5 293.8 Total revenue 1)

-4.4% 5,266 5,506 Employees (average/full-time) +17.4% 8.5 7.3 EBIT

Change in % Q1-3 2006 Q1-3 2005 EUR m EBIT +17.4% +5.2% 138,2 145,4

Q1-3 2005 Q1-3 2006

7,3

8,5

Q1-3 2005 Q1-3 2006

Cash flow Q1-3/2006

166.6 148.5

= Free cash flow

-40.7 -67.7

+/- Cash flow from financing activities

125.9 80.8

= Net increase in cash and cash equivalents

-30.6 -36.1

+/- Cash flow from investing activities

197.2 184.5

= Cash flow from operating activities

3.6 -2.7

+/- Changes in working capital

193.6 187.3

Operating cash flow

before changes in working capital Q1-3 2006 Q1-3 2005 EUR m Q1-3 2005 Q1-3 2006

Operating cash flow

193.6

187.3 EUR 22m liabilities for real estate acquisition repaid

Dividend payment of EUR 40m

Net increase in cash of EUR 126m

Improved balance sheet structure Q1-3 2006

Capital and reserves

Provisions

Financial liabilities

Equity and liabilities: equity ratio of 50%

1,563.0

1,604.6

„ Interest bearing provisions: EUR 400.7m

„ Provision for termination benefits EUR 66.4m

„ Provision for jubilee benefits EUR 91.9m

„ Provision for employee underutilization

EUR 239.9m

„ Non-interest bearing provisions of EUR 129.9m Total volume of provisions: EUR 530.6m

Liabilities 50%

237.2 326.9

42.2

44.1 431.8

530.6 792.7 762.1

Improved balance sheet structure Q1-3 2006

Property, plant & equipment, intangible assets Financial assets Inventories, receivables and other assets

Cash and cash equivalents

Assets: EUR 512m in financial assets, cash and cash equivalents

1,563.0m

1,604.6m

398m _{220 - 230}

Cash surplus before

dividend expected for full year 2006

150 = Cash surplus before

dividend

40 Dividend payment for 2005

110 Net increase in cash

positions in Q1-3 2006

EUR m

Upward Adjustment of Forecast for 2006

„

Revenue forecast: stable to slight increase

„

Upward adjustment of the EBIT forecast from 10%-15% to

15%-20% year-on-year

2006

2007

and

beyond

„

Dividend of EUR 70m in Q2 2007 (subject to approval of AGM)

„

Payout ratio of 70% assuming ongoing satisfactory business

development and unchanged financial position

„

Consolidation of 75% stake in trans-o-flex

„

Medium-term goal remains: sustainable stabilisation of EBIT margin

at 7%-8%

Contact / Disclaimer

„

Österreichische Post AG

Investor Relations

Postgasse 8

1010 Vienna, Austria

„

Investor Relations website: www.post.at/ir/en

„

E-mail: [email protected]

„

Phone +43 (1) 51551 30401

„

Fax +43 (1) 51551 30409

Disclaimer

This presentation contains forward-looking statements, based on the currently held beliefs and assumptions of the management of Austrian Post, which are expressed in good faith and, in their opinion, reasonable. These statements may be identified by words such as “expectation” or “target” and similar expressions, or by their context. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or

achievements of Austrian Post, or results of the postal industry generally, to differ materially from the results, financial condition. performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. Austrian Post disclaims any obligation to update these forward-looking statements to reflect future events or developments.