Slide 1: Interim report 1–3/2020
Interim report 1 –3/2020 Adjusted operating result wa s sta b le – net sales outlook for 2020 lowered due to the increased uncertainty caused by the coronavirus
Slide 2: Posti in figures, 1–3/2020
Posti in fig ure s, 1 –3 /2 0 2 0 Net sales EUR 384.2 million (EUR 396.6 million) Adjusted operating result EUR 12.6 million (EUR 12.2 million) Number of personnel , end of period 20, 89 0 (20 ,946 )
Slide 3: Financial highlights
Financial highlights • Net sales decreased by 3.1% to EUR 384.2 (396.6) million. • Adjusted EBITDA was EUR 40.8 (40.6) million, or 10.6% (10.2%) of net sales. • EBITDA increased to EUR 40.1 (36.4) million, or 10.4% (9.2%) of net sales. • The adjusted operating result improved to EUR 12.6 (12.2) mill
Slide 4: Operational highlights
Operational highlights • The global coronavirus (COVID -19) pandemic began to have an impact on Posti’s operations in March. • However, Posti’s financial performance was even more dominated, especially in the beginning of the quarter, by the recovery from the postal strike. • Logistiscs Solutions co
Slide 5: Parcel volumes keep growing
Parcel volumes keep growing The number of parcels Parcel volume growth in going through Posti Parcel Finland and in the Baltics Lockers 1–3/20 20 1–3/20 20 +65 % +6 % Freight volumes* Addressed letter volumes 1–3/20 20 1–3/20 20 -9 % -1 5 % * The reported figure for domestic freight excludes food lo
Slide 6: Parcel & eCommerce, Transval and Freight Services together add up to over 50 percent of net sales
Parcel & eCommerce, Transval and Freight Services together add up to over 50 percent of our overall net sales In 1-3/2020, the Group’s net sales totalled EUR 384.2 million Freight Services > Net sales EUR 41.4 million (-19.2%) > 10.8% of the Group’s net sales Itella Russia > Net sales EUR 17.8 milli
Slide 7: Aditro Logistics
Ad it ro Log ist ics • On February 24, Posti signed of an agreement, under which it would acquire Aditro Logistics, one of the leading contract logistics companies in the Nordics. • The acquisition was in line with Posti’s ambition of growing its logistics, parcel and eCommerce businesses. • Aditro
Slide 8: Business Environment
Business Environment Aneti ve
Slide 9: Coronavirus will have a big impact on the global and Finnish economy
Corona virus will have a b ig imp a ct on t he g lob a l a nd Finnish economy • The rapid spread of coronavirus is having a significant impact on the world trade • The global economy will shrink by 3% in 2020 , making the downturn deeper than in the 2008 –2009 financial crisis * • It is widely expec
Slide 10: Coronavirus is transforming the way we live and work
Coronavirus is transforming the way we live and work • Self -isolation and social distancing have changed the way people communicate, shop and use different services . • New digital services and solutions are rapidly emerging. • The buying habits of consumers have changed, people are buying more pro
Slide 11: Posti has raised its level of preparedness due to coronavirus
Post i ha s raised its level of prepar edness d ue t o coronavirus • The main impact of coronavirus to Posti’s operations as of today • Due to the exceptionally large volume of parcels, Posti has increased its number of employees and deliveries as well as obtained new parcel handling facilities . •
Slide 12: Negotiation on possible layoffs in certain business areas due to the coronavirus situation
Negotiati on on possible layoffs in certain business areas due to the coronavirus situation Freight Services Transval • Negotiation s on temporary layoffs for a fixed period • Cooperation negotiations on potential layoffs were were initiated on 27 April 2020, scope approximately initiated on 24 Marc
Slide 13: Financials
Financials
Slide 14: Posti Group Q1 net sales
Posti Group Q1 net sales Q1 net sales decreased by 3.1 % to EUR 384.2 (396.6 ) million
Slide 15: Posti Group Q1 adjusted operating result
Posti Group Q 1 adjusted operating result Q1 adjusted operating result increased by 3.2% to EUR 12.6 (12.2 ) million * Figures for 2019 r estated based on the new definition of special items ** percent of net sales
Slide 16: Posti Group key figures
Posti Group key figures * Continuing operations ** Restated based on the new definition of special items
Slide 17: Posti's total cost structure trend
Posti’s total cost structure trend • Declining mail volume needs to be off -set by cost structure development • Personnel on average FTE in Q1 20 20 was 15,894 (1 6,661 )
Slide 18: Long term financial targets
Long term financial targets * Restated based on the new definition of special items ** 2016 –2018 not according to IFRS 16 standard *** Board of Directors' proposal to the Annual General Meeting
Slide 19: Outlook
Outlook Näkymät
Slide 20: Posti's outlook for 2020 (updated)
Posti ´s outlook for 2020 (up d a t ed ): The coronavirus situation makes the macro economic outlook extremely difficult to predict for the full ye a r. Be ca use of this, a lso Po sti’s full ye a r o utlo o k includ e s a sig nifica nt le ve l o f unce rta inty. Post i’s net sales in 2020, excludin
Slide 21: Segments
L = ® = D) Jd) ep)
Slide 22: Mail, Parcel and Logistics Services key figures
Mail, Parcel and Logistics Services key figures Januaray–March EUR million 1-3 2020 % of 1-3 2019 % of • Net sales decreased to EUR 366.6 (376.4) Net sales Net sales million due to Net sales 366.6 376.4 • continued mail volume decline , Net sales change, % -2.6% 2.2% accelerated by t he strike in 20
Slide 23: Itella Russia key figures
Itella Russia key figures January–March • Reported euro -denominated net sales decreased by 12.1% to EUR 17.8 (20.2) million . • Net sales decreased in Contract Logistics due to restructuring actions of warehouses and in Road Transport. • The adjusted operating result improved to EUR 1.2 ( -1.0) mil
Slide 24: Thank you!
THANKYO U!