1 World Mail & Express Americas 2010 | 23 rd February 2010 | C.-G. Mende | Austrian Post Key Figures Austrian Post Revenues: EUR 1,723.2m Employees: ca. 26,000 FTE* EBIT: EUR 93.7m Austrian Post Group (Q ) Subsidiaries in 11 countries Revenue: EUR 561.3m Employees: ca FTE* Shipments: ~100m p.a. * Periodical average Parcel & Logistics Division (Q ) Services provided in 11 countries * Periodical average

2 World Mail & Express Americas 2010 | 23 rd February 2010 | C.-G. Mende | Austrian Post Parcel delivery Becoming part of the customers' sales process

3 World Mail & Express Americas 2010 | 23 rd February 2010 | C.-G. Mende | Austrian Post Market and Competition 5,3% 0,9% CAGR CAGR National CEP-Markets (€ bn Turnover) International CEP-Markets (€ bn Turnover) 23,6 27,6 27,8 30% 32% 70%68% Express Standard +7,5% +4,3%+1,4% +0,1% 8,6% 2,2% CAGR CAGR ,2 11,8 12,1 60% 59% 58% 40% 41%42% Express Standard +8,0% +9,5% +4,9% +0,3% 29% -7,0% 71% 27,2 +- 0% 11,3 48% 52%-20,0% +- 0% - 2,2% CAGR ,1% CAGR % 54% 28% 72% ca.27,0 ca.11,5 -0,7% 1,7% -9,8 +2,8% +0,2% +3,6% CAGR CAGR Market development 2009 ■ Decline of European market volume by approx. 10% ■ Enforced (price-) competition ■ Switch from Express to (cheaper) standard services ■ Decrease of volume- and turnover, declining margins ■ B2C segment is (only) growth market Competition 2009 ■ Trend towards “cost-cutting” (fixed-costs, personnel, marketing, subcontractors etc.) ■ Increases focus on sales activities (aggressive pricing, special offers, new products etc.) ■ Increased focus on B2C Segment Expectations 2010 ■ Volume development is seen slightly optimistic ■ Expectation of stable prices, competition remains hard ■ Sustainable change of demand from express to standard ■ B2C segment as main market driver (due to rising revenues in e-commerce) ■ In 2010, most market participants will be seeking to grow cautiously while maintaining careful cost management

4 World Mail & Express Americas 2010 | 23 rd February 2010 | C.-G. Mende | Austrian Post Momentum in parcels in the past and expected development in near future “The international air express market should recover this year after a 6.9% volume decline in 2009” (New study from aviation consultants Air Cargo Management Group) “The global express market size is expected to reach US$ billion in 2012, growing at an annual growth rate of 4.87%.” (Global Courier, Express & Parcel (CEP) Market Edition) Per capita expenses for Express- and Parcel services “German mail order and online business grows 2 digit, whereas stationary trade is expected to grow 2% in 2010“ (German E-Commerce and Distance Selling Trade Association) “Turnover in mail-order business reaches ~30bn in 2009“ (German E-Commerce and Distance Selling Trade Association) Source: yStats.com

5 World Mail & Express Americas 2010 | 23 rd February 2010 | C.-G. Mende | Austrian Post What do our customers expect? Customer Expectations remain constant for about 20 years now … 1= not important 2= less important 3= important 4 = quite important 5 = very important Reliability features Price

6 World Mail & Express Americas 2010 | 23 rd February 2010 | C.-G. Mende | Austrian Post What do we do? (1) Market Research Design Product- ion Storage Marketing Trade Delivery Customer Extend the value chain …

7 World Mail & Express Americas 2010 | 23 rd February 2010 | C.-G. Mende | Austrian Post 1. Consult the Experts 3. Cut WISMO (“where is my order”) Inquires 2. Automate Tasks 4. Extend Your Focus to the Return Trip 5. Get a Grip on Inventory Top 10 Shipping Tips for 2010 By a Vice President of Customer Technology Marketing of one of the Integrators 6. Compete on an International Level 8. Integrate Your Shipping Processes 7. Ship to the Right Address 9. Pick the Right Mode of Transportation 10. Stay Connected What do we do? (2)

8 World Mail & Express Americas 2010 | 23 rd February 2010 | C.-G. Mende | Austrian Post And this is how we did (1) … “With less staff due to layoffs, it is no wonder that this year, we saw an increase in the error rate.” “For the most part, our readership made great strides in decreasing costs. But they paid a price for those decisions.” Source:

9 World Mail & Express Americas 2010 | 23 rd February 2010 | C.-G. Mende | Austrian Post And this is how we did (2) … January 2010 Snapshot of “Verkehrsrundschau” in Germany 18 (mostly small) companies rank higher in Customer satisfaction than any of the key players in the (German) Market 19 20

10 World Mail & Express Americas 2010 | 23 rd February 2010 | C.-G. Mende | Austrian Post Parcel delivery Becoming part of the customers' sales process A good crisis wasted

11 World Mail & Express Americas 2010 | 23 rd February 2010 | C.-G. Mende | Austrian Post Our Thinking vs. Customer Expectations We need to turn the process around Market Research Design Product- ion StorageMarketingTradeDeliveryCustomer Extending the value chain

12 World Mail & Express Americas 2010 | 23 rd February 2010 | C.-G. Mende | Austrian Post Innovations? „The biggest innovation in the (financial) industry over the past 20 years had been the cash machine.“ Paul Volcker, Former Federal Reserve Chairman (1979 to 1987), now chairman of President Obama’s Economic Recovery Advisory Board; during a conference of high-level bankers on 8th December 2009

13 World Mail & Express Americas 2010 | 23 rd February 2010 | C.-G. Mende | Austrian Post Customer expectation ? 1= not important 2= less important 3= important 4 = quite important 5 = very important My Logistic partner creates offers which inspire me instead of only managing my demand My Logistic Partner does not “sell” flexibility, but changes processes where needed to create value for my customers My logistic partner supports my products My Logistic Partner works with me to find solutions which be import for my customers in future My Logistic partner understands my market My Logistic partner helps me to sell more My logistic partner understands different geographic markets and offers more than “one size fits all” Illustrative

14 World Mail & Express Americas 2010 | 23 rd February 2010 | C.-G. Mende | Austrian Post A (good?) crisis wasted