Slide 1: Q4 and Full Year 2019
Q4 and Full Year 2019 Strike had a significant negative impact on Q4/2019 and on Full Year results
Slide 2: Posti in figures 2019
Posti in figures 2019 Net sales EUR 1,565 million (EUR 1,559 million) Adjusted operating result EUR 39.0 million (EUR 47.0 million) Number of personnel at the end of the year ~20,500 (~18,200)
Slide 3: Financial Highlights
Financial Highlights • Net sales increased by 0.3% and adjusted operating result decreased by 17% • Posti’s financial results up to the third quarter were indicating a strong financial year. • As the fourth quarter traditionally contributes a significant portion to Posti’s annual results, the strike
Slide 4: Parcel volumes keep growing
Parcel volumes keep growing The number of parcels going Parcel volume growth in through Posti Parcel Lockers 1- Finland and in the Baltics 12/2019 1–12/2019 +40 % +7% Freight volumes* Addressed letter volumes 1-12/2019 1-12/2019 -2 % -16 % * The reported figure for domestic freight excludes food log
Slide 5: 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 2019, the Group’s net sales totalled EUR 1,564.6 million Logistic Solutions > EUR 396.7 million > Around 25% of the Group’s net sales > Change in net sales: 25.4% compared to previous year Parce
Slide 6: Posti needs to remain competitive against other delivery companies in the market
Posti needs to remain competitive against other delivery companies in the market • Posti’s operations are over 90% based on fully commercial operations. • In 2019, 93% of the net sales were based on commercial and only 7% of the net sales were based on mail items covered by the About 93% of universa
Slide 7: Posti's updated strategy 2020-2022
Posti`s updated strategy 2020-2022 Confidential
Slide 8: In what do we focus on in our operations?
In what do we focus on in our operations? Zero-carbon services 2030 Win the eCommerce play Most reliable partner in logistics Keep mail relevant Future Data-driven Adaptive CX acceleration mindset
Slide 9: It is time to step up our climate gear and lead towards carbon free solutions
It is time to step up our climate gear and lead towards carbon free solutions. Our ambitious goal is to be carbon free in 2030. 9 Posti Group Oyj
Slide 10: We deliver your dreams and a more sustainable future
WE DELIVER YOUR DREAMS AND A MORE SUSTAINABLE FUTURE ‘<y EXPAND PRESENCE IN CITIES & THE BALTIC REGION <Y ZERO CARBON SERVICES LOCAL REGIONAL <y_NEW ERA OF PERSONALIZED ‘CUSTOMER EXPERIENCE a LEVERAGE DATA ‘& DIGITAL PLATFORMS INCREASING VISIBILITY. WE DELIVER WE DELIVER YOUR WE REINVENT DELIVERY YO
Slide 11: Posti's strategy in 2018-2020
Posti`s strategy in 2018-2020
Slide 12: Fall in paper mail volumes has decreased revenue while parcel and logistics grow
While the fall in paper mail volumes has decreased Posti’s revenue, the company has managed to grow its revenue from parcel, e-commerce and logistics business, in accordance with its strategy.
Slide 13: Strategy and its implementation in 2019
Strategy and its implementation in 2019 Posti's transformation has also been implemented in 2019 through various mergers and acquisitions. Posti has acquired new businesses, in areas within or close to its core competences, targeting to generate profitable growth. Further, Posti has divested busines
Slide 14: Strategy and its implementation in 2019
Strategy and its implementation in 2019 • Posti completed the acquisition of the in-house logistics company Suomen Transval Group Oy in the beginning of 2019. As a result of the acquisition Posti became a significant operator in logistics outsourcing solutions in Finland, according to its` strategy
Slide 15: Operational Highlights in 2019
Operational Highlights in 2019
Slide 16: Operational Highlights in 2019
Operational Highlights in 2019 • The number of Parcel Lockers grew aggressively and we now have a network almost 1,700 lockers around Finland. • At the end of December, Posti had 1,673 parcel lockers compared to 1,002 in 2018 – growth was 67%. • Posti aims to increase the number of parcel lockers to
Slide 17: Operational Highlights in 2019
Operational Highlights in 2019 • Posti opened Box, a shop focused on eCommerce, in the center of Helsinki. • On a number of occasions during the year, the OmaPosti app was the most downloaded app. • Posti launched the Plus Sticker to be attached next to the traditional stamp on letters in April. The
Slide 18: Business Environment
Business Environment
Slide 19: The Finnish economy continues to grow slower but e-commerce growth trend continues
The Finnish economy continues to grow slowlier but e-commerce growth trend continues Finland´s gross domestic • E-commerce markets has continued its growth. ! product (GDP) 0.9% in 2020 • Finnish consumers estimate that they will make more online purchases in the future than they do now. • Almost 18
Slide 20: Financials
Financials Aneti ve
Slide 21: Posti Group Q4 net sales
Posti Group Q4 net sales Q4 net sales decreased by 6.6% to 393 (421) EUR million
Slide 22: Posti Group Q4 adjusted operating result
Posti Group Q4 adjusted operating result Q4 adjusted operating result decreased by 15.1 EUR million to 5.4 (20.5) EUR million * percent of net sales
Slide 23: Posti's total cost structure trend
Posti’s total cost structure trend • Cost structure is slightly lower than in the comparison period due to strike impact • Declining mail volume needs to be off-set by cost structure development • Personnel on average FTE in Q4 2019 was 16,036 (15,868) * includes depreciation and amortization, exclu
Slide 24: Long term financial targets
Long term financial targets * continuing operations ** 2019 is not comparable with previous years due to IFRS 16 standard
Slide 25: Outlook
Outlook Näkymät
Slide 26: Posti's outlook for 2020
Posti´s outlook for 2020: Net sales in 2020, excluding possible new acquisitions and divestments, is expected to remain on par with the previous year. The Group’s adjusted operating result in 2020 is expected to increase from the previous year. The Group’s business is characterized by seasonality. N
Slide 27: Thank you!
THANK YOU!
Slide 28: Appendices
wneti Vve APPENDICES
Slide 29: IFRS 16 standard impact on Q4 2019 key figures
IFRS 16 standard impact on Q4 2019 key figures * • IFRS 16 standard has biggest impacts on EBITDA, net debt and key figures related to indebtedness. * continuing operations
Slide 30: IFRS 16 standard impact on 2019 key figures
IFRS 16 standard impact on 2019 key figures * • IFRS 16 standard has biggest impacts on EBITDA, net debt and key figures related to indebtedness. • Net debt / adjusted EBITDA ratio 31.12.2019 has been calculated with IFRS 16 which was adopted in the beginning of 2019. It contains 12 months Adjusted
Slide 31: Segments
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Slide 32: Mail, Parcel and Logistics Services key figures
Mail, Parcel and Logistics Services key figures October-December • The strike heavily impacted on the net sales of the Mail, Parcel and Logistics Services segment. • Within the segment, the decline in volumes had a negative effect on net sales particularly in Postal Services and in Parcel and eComme
Slide 33: Mail, Parcel and Logistics Services key figures
Mail, Parcel and Logistics Services key figures January-December • The increase in Mail, Parcel and Logistics Services segment net sales was attributable especially to the positive development of the Logistics Solutions business group, driven primarily by the Transval acquisition completed during th
Slide 34: Itella Russia key figures
Itella Russia key figures October-December • Net sales decreased in Contract Logistic and Road Transport but increased in Air & Sea • Net sales decrease in Contract Logistics was driven by closing of the warehouses as net sales in remaining locations increased. The divestment of Connexions in Q4/201
Slide 35: Itella Russia key figures
Itella Russia key figures January-December • Net sales decreased in Contract Logistic, in Road Transport and in Air & Sea. Net sales were affected by the closing of the unprofitable warehouses, weak market for transport services and the divestment of Maxipost in Q2/2018 and Connexions in Q4/2018. •