Slide 1: Adjusted operating result improved significantly, driven by rapid and flexible scaling of operations
Adjusted operating result improved significantly, driven by rapid and flexible scaling of operations Q4 and Full Year 2020
Slide 2: Net sales, adjusted operating result and personnel in 2020
Net sales in 2020 EUR 1,613.6 million (EUR 1,564.6 million) Adjusted operating result in 2020 EUR 66.1 million (EUR 36.2 million) Number of personnel at the end of period ~20,900 (~20,500)
Slide 3: Financial highlights in Q4 2020 – very strong quarter
Financial highlights in Q4 2020 – very strong quarter • Net sales grew by 16.0% to EUR 455.9 (392.9) million. • Adjusted EBITDA was EUR 64.1 (34.0) million, or 14.1% (8.7%) of net sales. • The adjusted operating result improved to EUR 33.5 (4.4) million, representing 7.3% (1.1%) of net sales. • The
Slide 4: Parcel volumes reached a record level in Q4
Parcel volumes reached a record level in Q4 The number of parcels Parcel volume growth going through Posti in Finland and in the Parcel Lockers Baltics 10–12/2020 10–12/2020 +88% +47% Freight volumes* Addressed letter 10–12/2020 volumes 10–12/2020 +3% -3% * Measured in waybills
Slide 5: Financial highlights in 2020 – growth on many fronts
Financial highlights in 2020 – growth on many fronts • Net sales grew by 3.1% to EUR 1,613.6 (1,564.6) million. • Adjusted EBITDA was EUR 186.5 (152.3) million, or 11.6% (9.7%) of net sales. • The adjusted operating result improved to EUR 66.1 (36.2) million, representing 4.1% (2.3%) of net sales. •
Slide 6: Parcel & eCommerce and logistics business 59% (52%) of net sales in full year 2020
Parcel & eCommerce and logistics business 59% (52%) of net sales in full year 2020 Full year 2020 Itella Russia Aditro Logistics 5% (N/A) 4 % (5%) Freight Services 11% (13%) Postal Services 40% (44%) Transval 12 % (12%) Parcel and eCommerce 29 % (26%) = Postal services | = Parcel & eCommerce and log
Slide 7: Operational highlight in 2020 – a record-breaking peak season as growth driver
Operational highlight in 2020 – a record-breaking peak season as growth driver • The global COVID-19 pandemic had a significant impact on A record-breaking 7.7 million Posti’s operations in 2020 parcels delivered during the peak • Parcel and eCommerce business group benefitted from the season growth o
Slide 8: Entering the next phase in our journey
Entering the next phase in our journey
Slide 9: We have always considered it a matter of honor to deliver what matters to the recipient
We have always considered it a However, the transformation matter of honor to deliver what of the last decade has been matters to the recipient – drastic and has challenged us parcels, invitations, food… in many ways We have always done our work in the spirit of the Digitalization and changes in peo
Slide 10: The exceptional year 2020 worked as a proof of concept
The exceptional year 2020 worked as a proof of concept Mail Since March 2020, our parcel volumes have been 30-40% higher than previous year. In December 2020, we delivered more than 7 million parcels – an all- Mail decline started in …now a significant time record. 2009 after the financial amount of
Slide 11: Parcels and flows of goods are now at the core of our business
Parcels and flows of goods are now at the core of our business
Slide 12: Responsibly delivering what matters to you – on your terms
Responsibly delivering what matters to you – on your terms
Slide 13: The core of updated group strategy
The core of updated group strategy is based on Continuously improving Employee experience based customer experience on purpose-driven leadership Industry-leading operational efficiency Zero Carbon 2030
Slide 14: Tomorrow's Posti is a modern delivery and fulfillment company with progressive profitability
Tomorrow’s Posti is a modern delivery and fulfillment company with progressive profitability
Slide 15: Optimising the e-commerce logistics value chain
We strive to create new customer value by optimising the e-commerce logistics value chain Transportation Warehousing Sorting Delivery
Slide 16: What makes us unique?
Posti’s employees as the best experts in their field What makes us unique? Pioneers in data and High-volume network technology
Slide 17: We show the way by reducing our own emissions to zero by 2030
We show the way by reducing our own emissions to zero by 2030 Posti’s own C0 2 We are on track on our road emissions towards zero by 2030 – last 120000 year our own emissions lowered by 14%. 110000 100000 90000 Usage of renewable fuels 80000 grew to 10% by the end of the year 2020. In total, over fo
Slide 18: How to succeed
How to succeed Posti will re-focus its business portfolio and become a modern delivery and fulfillment company We seek growth in parcels, eCommerce and logistics in Finland, Sweden and the Baltics, complemented by postal services in Finland We strive to create new customer value by optimising the e-c
Slide 19: Over 100M€ future investments for improving parcel and eCommerce capabilities
Over 100M€ future investments for improving parcel and eCommerce capabilities to better serve our customers CUSTOMER EXPERIENCE PARCEL LOCKER NETWORK OPERATIONS Continuous development Plan is to expand Investments in of digital capabilities, up to 4,000 technology, sorting e.g. OmaPosti, parcel auto
Slide 20: Financials
Financials
Slide 21: Posti Group's Q4 net sales
Posti Group’s Q4 net sales Q4 net sales grew by 16.0% to EUR 455.9 (392.9) million
Slide 22: Posti Group's Q4 adjusted operating result
Posti Group’s Q4 adjusted operating result Q4 adjusted operating result improved to EUR 33.5 (4.4) million
Slide 23: Posti Group's key figures
Posti Group’s key figures * Continuing operations ** Restated based on the new definition of special items *** Board of Directors' proposal to the Annual General Meeting **** The comparison figures in 2019 were significantly burdened by the postal strike in the latter half of the year
Slide 24: Outlook and long-term financial targets
Outlook and long-term financial targets
Slide 25: Posti's outlook for 2021
Posti’s outlook for 2021 In 2021, Posti is expecting its net sales to remain at the previous year’s level, excluding possible new acquisitions and divestments. The Group’s adjusted EBITDA in 2021 is expected to decrease from the previous year In 2020, Posti’s net sales were EUR 1,613.6 million and a
Slide 26: Long term financial targets
Long term financial targets * Restated based on the new definition of special items NOTE! Long-term financial targets are revised, the graphs above ** 2016-2018 is not according to IFRS 16 standard illustrate the old long term financial targets *** Board of Directors' proposal to the Annual General
Slide 27: Revised long-term financial targets
Revised long-term financial targets Adjusted EBITDA percentage 13% Net debt / Adjusted EBITDA less than 2.5x Continuously increasing ordinary dividend, but not exceeding annual net profit
Slide 28: Segments
Segments
Slide 29: Mail, Parcel and Logistics Services key figures (Oct–Dec)
Mail, Parcel and Logistics Services key figures October-December • Net sales increased to EUR 413.0 (370.1) million • Increased in all business groups excluding Freight Services • The growth was mainly due to the record- high parcel volumes and low comparison figures of Postal Services as well as Pa
Slide 30: Mail, Parcel and Logistics Services key figures (Jan–Dec)
Mail, Parcel and Logistics Services key figures January-December • Net sales were at the previous year’s level, EUR 1,481.6 (1,482.2) million • Increased in Parcel and eCommerce and Transval but decreased in other business groups • The continued mail volume decline, accelerated by postal strike and
Slide 31: Itella Russia key figures (Oct–Dec)
Itella Russia key figures October-December • Reported euro-denominated net sales decreased by 38.6% to EUR 14.1 (23.0) million • Net sales decreased in Contract Logistics due to restructuring actions of warehouses and the impact of coronavirus situation to Transport • The adjusted operating result w
Slide 32: Itella Russia key figures (Jan–Dec)
Itella Russia key figures January-December • Reported euro-denominated net sales decreased by 29.6% to EUR 58.3 (82.8) million • Net sales decreased in Contract Logistics due to restructuring actions of warehouses and the impact of coronavirus situation on Transport • The adjusted operating result i
Slide 33: Aditro Logistics key figures (Oct–Dec)
Aditro Logistics key figures October-December • Net sales were EUR 29.1 million • Aditro Logistics’ operations consists of contract logistics, transportation and staffing businesses • Especially contract logistics and transportation businesses were impacted by COVID-19 • The customer mix changes that
Slide 34: Aditro Logistics key figures (Jan–Dec)
Aditro Logistics key figures January-December* • Net sales were EUR 74.7 million • Especially contract logistics and transportation businesses were impacted by COVID-19 • The customer mix changes that were carried out as planned during 2020 also impacted net sales • Adjusted and reported operating r
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