DJ EANS-Adhoc: Österreichische Post AG / Austrian Post - Annual Results 2008:
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The issuer is responsible for the content of this announcement. =------------------------------------------------------------------------------- 12.03.2009 Revenue up 5.4%, EBIT increase of 4.1%, solid balance sheet, high cash flow, attractive dividend policy Stability and continuity are the top priorities - Group revenue up 5.4% in 2008 to EUR 2,441.4m - Mail: Good development in all areas (revenue +5.7%), organic revenue growth of 1.3% - Parcel & Logistics: revenue increase of 6.4% in spite of reduced parcel volume in the Austrian B2C business; growth primarily the result of acquisitions - Branch Network: good development of financial services - Earnings before interest and tax (EBIT) of EUR 169.5m (+4.1%) - Solid balance sheet: equity ratio of 40%, no external borrowing requirements - Prudent balance sheet policy: conservative balance sheet, and financial structure serve to minimise risks - Attractive and stable dividend policy based on a strong cash flow and solid balance sheet - Continuity in the management and the further development of the Group Austrian Post in 2008 The 2008 financial year developed positively for Austrian Post. Revenue rose 5.4%, and EBIT was up 4.1%. Growth was primarily based on acquisitions, but also included organic growth of 0.8%. This success is particularly impressive in the light of the major challenges faced by the company in the 2008 financial year. The loss of two important parcels customers in the Austrian market had to be compensated for as well as the integration costs of new subsidiaries, higher costs due to increased fuel and transport prices as well as a rise in expenditure for the employee social plan. So far, Austrian Post has hardly been impacted by the financial crisis in 2008. This is primarily related to the solid balance sheet structure, enabling Austrian Post to operate without any external borrowing requirements. Investments and acquisitions are financed from the current cash flow. As in the past, precautionary measures were taken by the company to avoid both operational and balance sheet risks. These measures include the ongoing evaluation of assets and impairment losses taken on property, plant and equipment and intangible assets, as well as the reduction in the valuation of Austrian Post's stake in the consortium BAWAG PSK. Accordingly, Austrian Post enjoys a strong equity ratio of 40% at the end of 2008 and a low net debt. With a liquidity cushion of EUR 340.6m, the company has a higher level of cash and cash equivalents and securities at its disposal than financial liabilities. This prudent balance sheet policy and the high cash flow are the basis for an attractive dividend policy. In this regard, the Management Board will not only propose to the Annual General Meeting scheduled for May 6, 2009 that a basic dividend amounting to EUR 1.50/share be distributed to shareholders, but also a special dividend of EUR 1.00/share as in the previous year. In 2009, stability and value generation remain top priorities for Austrian Post. However, it is becoming increasingly difficult to develop a precise outlook, because the uncertain business environment reduces the reliability of any forecasts. Against the backdrop of the complete liberalisation of the postal market in 2011, ensuring nationwide postal services and fair conditions for the Austrian postal sector by means of a new Austrian Postal Act will be important milestones for 2009. Safeguarding the future viability of Austrian Post and increasing its efficiency and flexibility will also be key focal points of the Group in the current financial year. Stability and continuity are the top priorities Austrian Post has been a publicly listed, private company for three years, with the Austrian State as its majority shareholder, and is subject to compliance with the relevant legal regulations. As a consequence, Austrian Post assumes responsibility towards its employees as well as customers and shareholders. Austrian Post has been successful for many years, because it has always developed appropriate responses to the demands of the marketplace. As a public limited company, Austrian Post has positioned itself in an excellent way in recent years and has operated successfully on behalf of all its stakeholders: - for employees, who, for example, receive an EBIT bonus in addition to their salaries - for the Ministry of Finance, because Austrian Post is a large taxpayer - for its owners, because Austrian Post generates profits and distributes dividends - for Austria as a business location, because the company is continually striving to expand and improve its postal services and banking services (PSK Bank), and finally - for customers, due to the fact that modern structures, a larger number of postal service points and better opening hours ensure high-quality services Today Austrian Post is confronted with a fundamental change in the postal market. The company must make the necessary preparations ahead of time in order to come to terms with the complete liberalisation of the postal sector in 2011. In accordance with the stock corporation law, the Management Board is responsible for developing appropriate measures and structures to optimally deal with the changes that lie ahead. "All measures designed to further optimise the economic situation of the company, ensure stability and generate value are based on the unanimous decision of the entire Management Board. Austrian Post will continue to attach great importance to the future of Austria as a business location and providing all Austrians with high quality services in the future", says Rudolf Jettmar, Member of the Management Board of Austrian Post and Interim CEO. Continuity in the management and further development of the Group is ensured at all times, even after the resignation of Anton Wais from the Management Board of Austrian Post for health reasons. Business development in detail The year 2008 posed major challenges to Austrian Post in the light of the increasingly serious international financial crisis, and particularly the loss of the two most important mail order customers in the Austrian parcels business. Despite these negative influences, Austrian Post succeeded in increasing total revenue by 5.4% compared to the previous year, to EUR 2,441.4m. In addition to organic growth (+ EUR 19.0m), this increase is primarily related to the consolidation of new subsidiaries (+ EUR 106.7m). Revenues of the Mail Division improved during the year under review by 5.7% compared to 2007, featuring good revenue development in all three business areas. Revenue of the Letter Mail Business Area remained almost constant, despite the ongoing trend to electronic substitution, whereas the Infomail Business Area (addressed and unaddressed direct mail items) and the Media Post Business Area posted solid organic growth. Revenue of the Parcel & Logistics Division increased by 6.4%, to EUR 785.9m. This can be mainly attributed to higher revenues derived from the Premium Parcel service in Austria (parcel delivery within 24 hours) and internationally, as well as growth generated by the newly-acquired subsidiaries. The 0.1% rise in revenues achieved by the Branch Network Division is due to the good development of financial services. Austrian Post's performance in the fourth quarter of 2008 also showed an increase in revenues compared to Q4 2007. Group revenues rose 1.3%, or EUR 8.3m, to EUR 656.8m. Revenues in the Mail Division were up 0.6% year-on-year, the Parcel & Logistics Division improved by 1.8% in the fourth quarter of 2008, and Branch Network Division revenues rose by 3.3%. Revenue EUR m 2007 2008 +/- % Q4 2007 Q4 2008 Revenue 2,315.7 2,441.4 +5.4% 648.4 656.8 EBITDA 292.7 321.7 +9.9% 101.2 134.8 EBIT 162.8 169.5 +4.1% 44.4 66.5 EBT 164.9 158.2 -4.0% 41.4 47.1 Profit for the period 122.6 118.9 -3.1% 26.5 31.3 Earnings per share 1.75 1.71 -2.3% 0.38 0.45 (EUR) In addition to a 5.4% increase in total revenues, the income statement of Austrian Post shows higher expenses for raw materials, consumables and other services used, which rose by 12.4% in 2008, to EUR 778.2m. This increase of EUR 86.0m is primarily related to the consolidation of the newly-acquired subsidiaries (EUR 58.7m) as well as higher fuel and transport costs during the period under review (+ EUR 23.4m). The staff costs of Austrian Post at EUR 1,119.2m constituted 46% of total revenues, the largest operating expense item. The average number of employees (full-time equivalents) rose to 27,002, up from 25,764 in the preceding year. This increase is entirely due to the acquisition of subsidiaries. In the 2008 financial year, expenditures for termination benefits, particularly in the third and fourth quarters, led to higher staff costs. As a result, the termination benefit expense climbed from EUR 16.9m in 2007 to EUR 24.5m in 2008. As in previous years, staff costs also include changes to provisions for employee under-utilisation. In the 2008 financial year, the provisions allocated for employee under-utilisation were reduced by a total of EUR 23.1m. In the fourth quarter of 2008 in particular, employees took increased advantage of the incentives offered by Austrian Post to leave the company, including voluntary termination benefits and temporary assistance for employees through the employee social plan. Moreover, structural measures were implemented in order to reintegrate a greater number of employees into the company's operations. As a result, the provision for employee under-utilisation was
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March 12, 2009 02:39 ET (06:39 GMT)
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