Slide 1: Interim Report January-June 2017
Posti Group Corporation Interim Report January-June 2017 July 27, 2017
Slide 2: Agenda
Agenda • April-June 2017 • January-June 2017 • Segments - Mail, Parcel and Logistics Services - Itella Russia - OpusCapita • Current Topics • Attachments 2 Posti Group Corporation July 27, 2017
Slide 3: Operating environment
Operating environment • The economic uptrend has strengthened in Finland. Bank of Finland’s forecast for the Finnish GDP growth in 2017 is 2.1%, Ministry of Finance’s forecast is 2.4%. • Transport volumes in heavy traffic have continued to increase since April 2016. • New Postal Act was approved by
Slide 4: January-June 2017 in a nutshell
January-June 2017 in a nutshell Posti in figures Mergers and acquisitions • The sell of OpusCapita’s Net sales 816.1 Finance and Accounting (EUR million) Outsourcing business. Estimated finalization is in Adjusted EBITDA September. 55.3 (EUR million) • The acquisition of SOL Adjusted operating perso
Slide 5: Heavy traffic and letter volumes
Heavy traffic and letter volumes 5 Posti 5.7.2017
Slide 6: Freight and parcel volumes continued to grow
Freight and parcel volumes continued to grow January-June 6 Posti Group Corporation April 28, 2017 * The reported figure for domestic freight excludes food logistics
Slide 7: April-June 2017
April-June 2017 7 Posti Group Corporation July 27, 2017
Slide 8: Posti Group Corporation July 27, 2017
8 Posti Group Corporation July 27, 2017
Slide 9: Key figures
Key figures April-June • The Group’s net sales increased by 3.4%. • Net sales increased by 3.0% in Finland and by 5.7% in other countries. • International operations accounted for 15.0% of net sales. • Special items amounted to EUR 7.8 million. There were special items particularly in OpusCapita. Sp
Slide 10: January-June
January-June 10 Posti Group Corporation July 27, 2017
Slide 11: Posti Group Corporation July 27, 2017
11 Posti Group Corporation July 27, 2017
Slide 12: Key figures
Key figures January-June • The Group’s net sales increased by 5.3%. The increase in net sales was supported by the Group’s expansion through acquisitions as well as the strenghtening of the Russian ruble. • Net sales increased by 4.5% in Finland and by 9.9% in other countries. • International operat
Slide 13: Employees
Employees • Number of employees converted into full- time equivalents on June 30, 2017 was: • The Group: 19,433 (19,472) • Finland: 15,108 (15,289) • Other countries of operation: 4,325 (4,182) • The Group employs 2,400 summer workers this summer. • The Group’s personnel expenses decreased by 6.0% c
Slide 14: Segments
Segments 14 Posti Group Corporation July 27, 2017
Slide 15: Mail, Parcel and Logistics Services
Mail, Parcel and Logistics Services April-June • The net sales grew by 3.8% due to acquisitions as well as higher demand for logistics services. • Parcels grew in Finland and in the Baltics by +4% (+5%), of which B2C parcels grew by +5% (+7%). • The number of parcels going through parcel points grew
Slide 16: Net sales of Mail and Marketing Services, Press Services, Parcel Services and Logistics Services
Net sales of Mail and Marketing Services, Press Services, Parcel Services and Logistics Services April-June 16 Posti Group Corporation July 27, 2017
Slide 17: Mail, Parcel and Logistics Services
Mail, Parcel and Logistics Services January-June • The net sales grew by 5.2% mainly due to acquisitions as well as higher demand for parcel, freight and logistics services. • The decline in the result of traditional postal operations was compensated for by the growth and improved result of freight
Slide 18: Net sales of Mail and Marketing Services, Press Services, Parcel Services and Logistics Services
Net sales of Mail and Marketing Services, Press Services, Parcel Services and Logistics Services January-June 18 Posti Group Corporation July 27, 2017
Slide 19: Itella Russia
Itella Russia April-June • Euro-denominated net sales increased by 15.9%. Measured in rubles, net sales decreased by 2.7%. Net sales were negatively affected by the weakness of the economy and international trade, as well as the decreased warehouse space. • Growth was seen in air and sea freight as
Slide 20: Itella Russia
Itella Russia January-June • Euro-denominated net sales increased by 22.8%. Measured in rubles, net sales decreased by 1.8%. • The adjusted operating result improved due to the optimization of warehouse space in the Moscow region and the appreciation of the ruble. • The average fill rate for warehou
Slide 21: OpusCapita
OpusCapita April-June • The year-on-year development of OpusCapita’s volumes was as follows: electronic transactions (comparable) +17%, iPost products -3%. • 58% of the net sales came from Finland, 42% from other countries. The Buyer-Supplier Ecosystem business grew by 5%. • The adjusted operating r
Slide 22: OpusCapita
OpusCapita January-June • The year-on-year development of OpusCapita’s volumes was as follows: electronic transactions (comparable) +18%, iPost products -4%. • OpusCapita transmitted a total of 252 million transactions. The electronic transaction volume was 123 million transactions, which represents
Slide 23: Outlook 2017
Outlook 2017 • Net sales in euros for the year are expected to increase compared to the previous year. Net sales • The development of exchange rates, especially the ruble exchange rate, may affect the Group’s net sales, result and balance sheet. • The Group’s adjusted operating result is expected to
Slide 24: Current Topics
Current Topics 24 Posti Group Corporation July 27, 2017
Slide 25: Key achievements in strategy implementation Q2/2017
Key achievements in strategy implementation Q2/2017 GROWTH FROM NEW SERVICES STRONG CORE • Growth from parcel and logistics services • New Postal Act allows three day-per-week mail delivery • Posti expands into in-house logistics through a joint venture • Posti to continue providing delivery service
Slide 26: Attachments
Attachments 26 Posti Group Corporation July 27, 2017
Slide 27: Financial Targets
Financial Targets • Adjusted operating result percentage exceeds 5% • Gearing does not exceed 35% • Return on invested capital is at least 10% • More than 10% of the Group’s net sales will come from new business areas in 2018 27 Posti Group Corporation July 27, 2017
Slide 28: Group cost structure
Group cost structure 28 Posti Group Corporation July 27, 2017
Slide 29: Balance sheet
Balance sheet 29 Posti Group Corporation July 27, 2017
Slide 30: Posti Group Corporation July 27, 2017
30 Posti Group Corporation July 27, 2017
Slide 31: Net debt and the maturity structure of loans
Net debt and the maturity structure of loans 31 Posti Group Corporation July 27, 2017
Slide 32: Thank you!
Thank you! 32 Posti Group Corporation July 27, 2017