Slide 1: Half year financial report January–June 2020
Half year financial report January –June 2020 Postal volume decline at record level – fast actions taken to mitigate profitability impact
Slide 2: Posti in figures 4–6/2020
Posti in fig ure s 4 –6 /2 0 2 0 Net sales EUR 392.3 million (EUR 393.8 million) Adjusted operating result EUR 3.1 million (EUR 8.1 million) Number of personnel at the end of period 2 2 ,986 (21 ,969 )
Slide 3: Financial highlights 4–6/2020
Financial highlights 4–6/2020 • Net sales were at the previous year’s level, EUR 392.3 (393.8) million. • Adjusted EBITDA was EUR 34.5 (37.3) million, or 8.8% (9.5%) of net sales. • The adjusted operating result decreased to EUR 3.1 (8.1) million, representing 0.8% (2.1%) of net sales. • The operati
Slide 4: Operational highlights 4–6/2020
Operational highlights 4–6/2020 • The global COVID -19 pandemic continued to impact Posti’s operations . • Parcel and eCommerce benefited from the growth of online shopping • Demand for traditional postal services significantly decreased • The combined net sales of Parcel and eCommerce as well as lo
Slide 5: Parcel volumes grew significantly
Parcel volumes grew significantly The number of parcels Parcel volume growth in going through Posti Parcel Finland and in the Baltics Lockers 4–6/20 20 4–6/20 20 +79 % +32 % Freight volumes* Addressed letter volumes 4–6/20 20 4–6/20 20 -1 2% -24 % * Measured in waybills
Slide 6: Parcel & eCommerce and logistics business increased to 60% of net sales
Parcel & eCommerce and logistics business increased to 60% (53%) of net sales In 4-6/2020, the Group’s net sales totalled EUR 392.3 million Itella Russia Aditro Logistics (-31.8%) Freight Services (-21.5%) Postal Services (-12.7%) Transval (-6.3%) ©) Postal services | Parcel & eCommerce and logistic
Slide 7: Integration of Aditro Logistics proceeding as planned
Integration of Ad it ro Log ist ics proceeding as planned • On April 2, Posti closed the acquisition of Aditro Logistics, one of the leading contract logistics companies in the Nordics. • The operations of Aditro Logistics have been significantly impacted by the COVID -19 situation. However, Aditro
Slide 8: Business Environment
Business Environment Aneti ve
Slide 9: COVID-19 is hitting the global economy hard and accelerating the transformation of postal and logistics industry
COVID -19 is hitting the global economy hard and accelerating the transformation of postal and logistics industry • COVID-19 is hitting the global economy hard in 2020 • The global economy -5% * • Finnish economy -7% ** • Russian economy -6% * • Swedish economy -5% *** • The development of macro eco
Slide 10: The impact of COVID-19 to Posti's operations (1/2)
The impact of COVID -19 to Posti’s operations (1/2) • COVID-19 has accelerated the already steep decline of postal volumes even further • In Q2, t he number of addressed letters decreased by a record -breaking 24% in Finland . This means over 30 million sent shipments less. • This had a significant
Slide 11: The impact of COVID-19 to Posti's operations (2/2)
The impact of COVID -19 to Posti’s operations (2/2) • The COVID-19 situation has significantly increased Posti’s parcel volumes . • Since March this year, Posti’s daily, weekly and monthly parcel volumes have experienced a clear step change. • Posti need s to prepare for a new normal in its parcel o
Slide 12: Posti's mitigating actions due to industry transformation and COVID-19
Posti’s mitigating actions due to industry transformation and COVID -19 • Posti has initiated several measures to adjust its cost structure. • Cooperation negotiations at Freight Services , Home Services, Postal Services and Posti Group COVID-19 situation administration • Posti’s Leadership Team has
Slide 13: COVID-19 has not impacted Posti's long term targets
COVID -19 has not impacted Posti’s long term targets • Posti seeks growth especially in Parcel and eCommerce and Logistics. • Posti wants to build a winning e -commerce customer experience and be the most reliable outsourcing partner in logistics. • We also want to continue to keep the mail relevant
Slide 14: Financials
\ Financials Aneti ve
Slide 15: Posti Group Q2 net sales
Posti Group Q2 net sales Q2 net sales were stable at EUR 392.3 (393.8) million
Slide 16: Posti Group Q2 adjusted operating result
Posti Group Q2 adjusted operating result Q2 adjusted operating result decreased by EUR5.0 million to EUR3.1 (8.1) million * percent of net sales
Slide 17: Posti Group key figures
Posti Group key figures * Continuing operations ** Restated based on the new definition of special items
Slide 18: Acquisitions increased Posti's operating expenses
Acquisitions increased Posti’s operating expenses • The acquisition of Alma Media’s ear ly-morning delivery operations and Aditro Logistics increased operating expenses in Q2 2020 . • Personnel on average FTE in Q2 2020 was 17,193 (17,054).
Slide 19: Long term financial targets
Long term financial targets * Restated based on the new definition of special items ** 2016 -2018 is not according to IFRS 16 standard
Slide 20: Outlook
Outlook Näkymät
Slide 21: Posti's outlook for 2020 (unchanged)
Posti ´s outlook for 2020 (unchanged ): The coronavirus situation makes the macro economic outlook extremely difficult to predict for the full ye a r. Po sti m a inta ins its o utlo o k fo r 2 0 2 0 , b ut b e ca use o f the se e xce p tio na l circum sta nce s, Po sti’s full ye a r o utlo o k inclu
Slide 22: Segments
Segments
Slide 23: Mail, Parcel and Logistics Services key figures (April-June)
Mail, Parcel and Logistics Services key figures April -June EUR million 4-6 2020 % of 4-6 2019 % of • Net sales decreased to EUR 357.0 (375.0) million Net sales Net sales • Increased in Parcel and eCommerce but Net sales 357.0 375.0 decreased in other business groups Net sales change, % -4.8% 3.5% •
Slide 24: Mail, Parcel and Logistics Services key figures (January-June)
Mail, Parcel and Logistics Services key figures January -June EUR million 1-6 2020 % of 1-6 2019 % of • Net sales decreased to EUR 723.7 (751.5) million Net sales Net sales • Increased in Parcel and eCommerce and Transval*, Net sales 723.7 751.5 decreased in Postal Services and Freight Services Net
Slide 25: Itella Russia key figures (April-June)
Itella Russia key figures April -June EUR million 4-6 2020 % of 4-6 2019 % of • Reported euro -denominated net sales decreased by Net sales Net sales 31.8% to EUR 12.9 (18.9) million Net sales 12.9 18.9 • Net sales decreased in Contract Logistics due to Net sales change, % -31.8% -23.9% restructurin
Slide 26: Itella Russia key figures (January-June)
Itella Russia key figures January -June EUR million 1 -6 2 0 2 0 % of 1 -6 2 0 1 9 % of • Reported euro -denominated net sales decreased by Ne t sa le s Ne t sa le s 21.6% to EUR 30.7 (39.1) million Ne t sa le s 3 0 .7 3 9 .1 • Net sales decreased in Contract Logistics due to Ne t sa le s cha ng e ,
Slide 27: Aditro Logistics key figures
Aditro Logistics key figures April -June* EUR million 4-6 2020 % of • Net sales were EUR 22.5 million Net sales Net sales 22.5 • Aditro Logistics’ operations consists of contract logistics, transportation and staffing businesses Net sales change, % • Especially contract logistics and transportation
Slide 28: Thank you!
THANKYO U!