Slide 1: Half-year report 1-6/2019
Posti Group Oyj Half-year report 1-6/2019 Postal volume decline continued on a record level – Profitability in line with previous year
Slide 2: Posti in figures Q2/2019
Postal volume Posti in figures Q2/2019 Net sales decline 393.8 continued on (386.8) a record level EUR million Adjusted Group net sales grew operating driven by result Transval 8.7 acquisition (8.2) EUR million The net sales for Parcel and eCommerce and 21,969 logistics solutions Number of together
Slide 3: Posti Group: Q2 Highlights
Posti Group: Q2 Highlights • Net sales increased by 1.8% to EUR 393.8 million (386.8). It was attributable to the development of Mail, Parcel and Logistics - segment. However, within the segment, development was two-dimensional. Net sales decreased in Postal Services and in Parcel and eCommerce
Slide 4: Posti Group
Parcel & e-Commerce and Logistics Solutions together add up to over 50 percent of our overall net sales. In January-June 2019, the Group’s net sales totalled EUR 790.5 million Parcel and eCommerce and Logistic Solutions Over 50% of the net sales Itella Russia (Logisttic services) Around 5% of the ne
Slide 5: Parcel and Logistics brings majority of group's net sales
Parcel and Logistics brings majority of group’s net sales • In 2014 H1 Parcel and Logistics represented roughly one third of group’s net sales • In 2019 H1 it covers over half of the net sales • At the same time Posti has made several divestments, e.g. OpusCapita and logistics operations in Scandina
Slide 6: Parcel volumes keep growing
Parcel volumes keep growing The number of parcels going Parcel volume growth in through Posti Parcel Lockers Finland and in the Baltics 1–6/2019 1–6/2019 +34 % +8 % Freight volumes* Addressed letter volumes 1-6/2019 1-6/2019 +1 % -14 % * The reported figure for domestic freight excludes food logisti
Slide 7: Posti's parcel locker network is the largest one in Finland
Posti Posti’s parcel locker network is introduced the largest one in Finland parcel lockers in 2011, and today Posti has • Posti is a market-driver: our network already has over the largest 1,400 parcel lockers, and we aim to increase the network number onward. • Finns are some of the most active pa
Slide 8: Business Environment and Strategy
Business Environment and Strategy
Slide 9: The Finnish economy is still growing and e-commerce trend continues
The Finnish economy is still growing and e-commerce trend continues Finland´s gross domestic • E-commerce has continued its product (GDP) is forecasted growth. Last year, digital to grow to purchases by Finns grew by about six per cent, and growth is 1.6% in 2019, expected to strengthen - but econom
Slide 10: Good progress towards our strategic targets
Good progress towards our strategic targets • The new Plus Sticker can be used to track the delivery 1. Keep mail relevant to of a letter the same way as a parcel. • The number of parcel points increased: there are now customers over 1,428 parcel lockers. 2. Win e-commerce play • Posti has succeeded
Slide 11: Financials
Financials 11 Posti Group 10/24/2018
Slide 12: Posti Group Q2 net sales
Posti Group Q2 net sales • Q2 net sales increased by 1.8% to 394 EUR million (387 EUR million) 12 Posti Group
Slide 13: Posti Group Q2 adjusted operating result
Posti Group Q2 adjusted operating result • Q2 adjusted operating result increased by 0.5 EUR million to 12.9 (13.2) EUR million 13 Posti Group
Slide 14: Posti's total costs structure trend
Posti´s total costs 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 14 Posti Group * includes depreciation and amortization, excludes impairment losses
Slide 15: Long term financial targets
Long term financial targets 15 Posti Group * continuing operations ** 2019 is not comparable with previous years due to IFRS 16 standard
Slide 16: IFRS 16 standard impact on Q2 2019 key figures
IFRS 16 standard impact on Q2 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 H1 2019 key figures
IFRS 16 standard impact on H1 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 18: Segments
Segments 18 Posti Group
Slide 19: Mail, Parcel and Logistics Services key figures
Mail, Parcel and Logistics Services key figures April-June • Postal Services net sales decrease was driven by a decline in volume, which was largely mitigated by pricing, product mix and delivery speed changes. • Strong volume growth, especially in April and June, continued to drive parcel net sales
Slide 20: Mail, Parcel and Logistics Services key figures
Mail, Parcel and Logistics Services key figures January-June • In Postal Services, net sales decreased because of mail volume decline, which has been at a record high level in January-June. • The total number of parcels delivered by Posti in Finland and the Baltic countries increased to 24.0 (22.2)
Slide 21: Itella Russia key figures
Itella Russia key figures April-June • Itella Russia’s net sales measured in local currency decreased by 25.7%. ItellaRussia’s Net salesnet sales was measured affected in localof by the closing currency warehouses decreasedin by the5.6%. regions. Reported euro- denominated net sales decreased by 14
Slide 22: Itella Russia key figures
Itella Russia key figures January-June • Itella Russia’s net sales measured in local currency decreased by 22.3%. Net sales was affected by the closing of Itella Russia’s net sales measured in local warehouses in the regions. currency decreased by 5.6%. Reported euro- denominated Accordingnettos
Slide 23: Outlook
Outlook
Slide 24: Outlook for 2019
Outlook for 2019 Net sales of continued operations, excluding possible new acquisitions and divestments, is expected to increase from 2018 driven by Transval acquisition. The Group’s adjusted operating result, of continued operations, is expected to increase from 2018 due to Transval acquisition and
Slide 25: Posti Group
25 Posti Group