07.03.2016 – 08:02

Österreichische Post AG

EANS-Adhoc: AUSTRIAN POST SELLS ITS GERMAN SUBSIDIARY TRANS-O-FLEX

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Strategic management decisions
07.03.2016


- AUSTRIAN POST SELLS THE LOGISTICS COMPANY TRANS-O-FLEX TO A STRATEGIC INVESTOR

- CLEAR DIRECTION DECIDED
- SALE LEADS TO ONE-OFF EFFECT IN GROUP BUSINESS RESULTS FOR 2015
- REVENUE UP 1.6% IN 2015 TO EUR 2,402M
- OPERATING EBIT OF EUR 198M SURPASSES PRIOR-YEAR LEVEL BY 2.6%
- IMPROVED CASH FLOW AS BASIS FOR FINANCING INVESTMENTS AND DIVIDENDS

Austrian Post reached an agreement with a strategic investor on the sale of its
German subsidiary trans-o-flex, a logistics company with revenue of about EUR
500m focusing on providing transport solutions for the pharmaceutical,
healthcare and consumer electronics sectors in Germany. In recent years,
trans-o-flex was strongly challenged by the difficult market environment in the
highly competitive German parcel and logistics market. For this reason, Austrian
Post assessed various strategic options within the context of an evaluation
process carried out in 2015. An agreement on the sale of trans-o-flex has now
been reached with a German strategic investor who will continue the
consolidation of trans-o-flex and its focus on its core business. The
acquisition is expected to take place in the coming weeks subject to the
approval of the German Competition Authority. 

"On the basis of this agreement we have made a decision which offers
trans-o-flex a clear path for its future development", says Georg Pölzl, Chief
Executive Office of Austrian Post.

The disposal of trans-o-flex led to a one-off non-cash effect in the
consolidated financial statements for 2015, for which a good operating result
was reported.  

Full Year Results: Operational improvements in 2015
The business development of Austrian Post during 2015 was positive, in line with
the trends prevailing in the first nine months of the year. Group revenue rose
by 1.6% from EUR 2,363.5m in the previous year to EUR 2,401.9m in 2015. 

The development of the individual divisions also corresponds to business
development in the preceding quarterly periods. The Mail & Branch Network
Division reported a 0.9% increase in revenue, from EUR 1,487.7m in 2014 to EUR
1,501.7m in the 2015 financial year. Revenue of the Parcel & Logistics Division
climbed to EUR 900.2m in 2015, up 2.9% from the prior-year figure of EUR 875.0m.
  

In terms of volumes generated by the Mail & Branch Network division, the volumes
in the Letter Mail business showed a 4% decline, whereas total volumes in the
Direct Mail and Media Post segment rose by 1%. Branch Services revenue remained
stable in 2015 compared to the previous year. 

The development of the Parcel & Logistics division varied from a regional
perspective. The outstanding logistics and service quality of Austrian Post was
the basis for a volume increase of 8% to 80 million parcels on the Austrian
market. In Austrian Post's international markets, the parcel business developed
positively in South East and Eastern Europe, whereas revenue and earnings
development in Germany (trans-o-flex) remained below expectations. 

Operating EBIT before special effects improved by 2.6% to EUR 198.0m, an upward
trend which reflects developments over the first three quarters of the year.
Reported EBIT in 2014 totalled EUR 196.9m. Adjusted to take account of special
effects recognised in 2014, comparable earnings were EUR 192.9m. The sale of
Austrian Post's former corporate headquarters had increased 2014 earnings by EUR
62.4m in contrast to the earnings reduction of EUR 58.4m related to special
effects from impairment losses and structural measures.   

EBIT of Austrian Post for the 2015 financial year was also negatively impacted
by special effects, which consisted principally of two items. Firstly,
impairment of EUR 131.9m was reported, most of in connection with the sale of
and structural measures for the subsidiary trans-o-flex, for which an impairment
loss on goodwill and assets (non-cash) of EUR 125.8m was recognised. Secondly,
the consolidated financial statements of Austrian Post for 2015 contain a
positive special effect of EUR 23.0m resulting from claims related to non-wage
costs for civil servants paid in previous periods. In aggregate, EBIT reported
by Austrian Post in 2015 amounted to EUR 89.0m, whereas the profit for the
period (net profit) was EUR 142.2m, or EUR 71.6m after special effects.  

Group free cash flow before acquisitions and securities totalled EUR 178.3m in
2015, ahead of the comparable figure of EUR 151.7m in 2014. This solid cash flow
comprises a good basis for Austrian Post to finance its future investments and
dividends. 

The detailed Group results for 2015 will be announced on March 10, 2016.  


Vienna, March 7, 2016


Further inquiry note:
Österreichische Post AG
DI Harald Hagenauer
Leitung Investor Relations, Konzernrevision & Compliance 
Tel.: +43 (0) 57767-30400 
harald.hagenauer@post.at	

Austrian Post
Michael Homola
Head of Press Relations 
Tel.: +43 (0) 57767-32010 
michael.homola@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