Slide 1: Interim report 7–9/2019
Interim report 7–9/2019 Posti´s adjusted operating result and net sales improved in Q3 – chosen strategy generates result
Slide 2: Operational Highlights
Operational Highlights • Posti has succeeded in making changes in line with its strategy, which has strengthened the shift in net sales towards Parcel and eCommerce and Logistics Solutions. • At the end of September, Posti had 1,545 parcel lockers. Posti aims to increase the number of parcel lockers
Slide 3: Parcel volumes keep growing
Parcel volumes keep growing Parcel volumes (million units) in Finland and in the Baltics The number of parcels going Parcel volume growth in through Posti Parcel Lockers 7- Finland and in the Baltics 9/2019 7–9/2019 +56 % +13% Freight volumes* Addressed letter volumes 7-9/2019 7-9/2019 +0 % -12 % *
Slide 4: Parcel & eCommerce and Logistics Solutions together add up to over 50 percent of net sales
Parcel & eCommerce and Logistics Solutions together add up to over 50 percent of our overall net sales In July-September 2019, the Group’s net sales totalled EUR 381.2 million. Itella Russia > EUR 20.7 million, Logistic Solutions > Around 5% of the net sales. > EUR 102.3 million, > Around 27% of the
Slide 5: Business Environment
> Business q : * Environment ® . “Wie
Slide 6: The Finnish economy is still growing and e-commerce growth trend continues
The Finnish economy is still growing and e-commerce growth trend continues Finland´s gross domestic • E-commerce markets has continued its growth. ! product (GDP) 1.6% in 2019 • Finnish consumers estimate that they will make more online purchases in the future than they do now. • Almost 18% of the r
Slide 7: Financials
Financials
Slide 8: Posti Group Q3 net sales
Posti Group Q3 net sales Q3 net sales increased by 6.8% to 381 (357) EUR million External net sales by segment of continuing operations, Group’s net sales of continuing operations, EUR million EUR million
Slide 9: Posti Group Q3 adjusted operating result
Posti Group Q3 adjusted operating result Q3 adjusted operating result increased by 6.9 EUR million to 12.0 (5.1) EUR million Group’s adjusted operating result of continuing operations, 2019 Q3 adjusted operating result by segment, EUR million EUR million and as a percent of net sales * percent of ne
Slide 10: Posti's total cost structure trend
Posti’s total cost structure trend • Cost structure is slightly higher than in the comparison period due to Transval acquisition • Declining mail volume needs to be off-set by cost structure development • Personnel on average FTE in Q3 2019 was 16,527 (16,450) Group’s operating expenses of continuin
Slide 11: Long term financial targets
Long term financial targets * continuing operations ** 2019 is not comparable with previous years due to IFRS 16 standard
Slide 12: Näkymät Outlook
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Slide 13: Posti specifies its guidance for 2019
Posti specifies its guidance for Posti´s outlook for 2019 before: 2019 Net sales of continued operations, excluding Net sales of continued operations, excluding possible new acquisitions and divestments, is possible new acquisitions and divestments, is expected to increase from 2018 driven by the ex
Slide 14: THANK YOU!
THANK YOU!
Slide 15: APPENDICES
wneti Vve APPENDICES
Slide 16: IFRS 16 standard impact on Q3 2019 key figures
IFRS 16 standard impact on Q3 2019 key figures * • IFRS 16 standard has biggest impacts on EBITDA, net debt and key figures related to indebtedness. • Net debt / adjusted EBITDA changes significantly and will reflect IFRS 16 standard fully at the end of year as adjusted EBITDA calculated as a rollin
Slide 17: IFRS 16 standard impact on Q1-Q3 2019 key figures
IFRS 16 standard impact on Q1-Q3 2019 key figures * • IFRS 16 standard has biggest impacts on EBITDA, net debt and key figures related to indebtedness. • Net debt / adjusted EBITDA changes significantly and will reflect IFRS 16 standard fully at the end of year as adjusted EBITDA calculated as a rol
Slide 18: Segments
Segments
Slide 19: Mail, Parcel and Logistics Services key figures
Mail, Parcel and Logistics Services key figures July-September • Good volume growth, especially in August and September, continued to drive Parcel and eCommerce net sales growth. • The Postal Services net sales decrease was driven by a decline in volume, which was mitigated by pricing and product mi
Slide 20: Mail, Parcel and Logistics Services key figures
Mail, Parcel and Logistics Services key figures January-September • In Postal Services, net sales decreased because of mail volume decline, which continued at a high level in January-September. • Parcel and eCommerce net sales increased only slightly in January-September because of the negative deve
Slide 21: Itella Russia key figures
Itella Russia key figures July-September • Net sales decreased in contract logistics but increased in air & sea. • Net sales in road transport remained at the same level compared with the corresponding period last year. • Net sales were also affected by the closing of the warehouses. The divestment
Slide 22: Itella Russia key figures
Itella Russia key figures January-September • Net sales were affected by the closing of the unprofitable warehouses and the divestment of Maxipost in Q2/2018 and Connexions in Q4/2018. • According to its strategy, Itella Russia focuses on its core businesses, contract logistics and transportation. •