Posti Group Oyj · OMXHEX:POSTI
Posti Group Oyj — Q4 2020 Earnings Presentation
35 slides from Posti Group Oyj's earnings presentation, February 2021
Slide 1: Q4 and Full Year 2020
Adjusted . 4 result improved significantly, driven by rapid and flexible sealing of operations l Q4 and Full Year 2020 \
Slide 2: Net sales, adjusted operating result and personnel in 2020
Net sales in 2020 (EUR 1,564.6 million) Adjusted operating result in 2020 (EUR 36.2 million) Number of personnel at the end of period (~20,500)
Slide 3: Q4 2020 highlights
• 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 operating result improved to EUR 25.4 (-2.8) million,
Slide 4: Parcel volumes in Finland and the Baltics
The number of parcels Parcel volume growth Parcel volumes (million units) in Finland and in the Baltics going through Posti in Finland and in the Parcel Lockers Baltics 10–12/2020 10–12/2020 % % 2019 2020 20.3 15.8 15.1 13.9 12.1 12.9 11.9 12.4 Freight volumes* Addressed letter 10–12/2020 volumes 10
Slide 5: Full year 2020 highlights
• 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. • The operating result improved to EUR 55.0 (18.5) mil
Slide 6: Net sales by business group, full year and Q4 2020
Full year 2020 Q4 2020 Itella Russia Aditro Logistics 4 % (5%) 5 % (N/A) Aditro Itella Russia Logistics 3 % (6%) Freight 6 % (N/A) Freight Services Services 11 % (13%) 10 % (12%) Postal Postal Services Services 40% (44%) 39% (43%) Transval Transval 11 % (12%) 12 % (12%) Parcel and eCommerce 30 % (27
Slide 7: A record-breaking 7.7 million parcels delivered during the peak season
• 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 of online shopping + • Postal Services suffered from the accelerated decline o
Slide 8: Entering the next phase in our journey
Entering the next phase in our journey
Slide 9: We have always done our work in the spirit of the times
We have always done our work in the spirit of the Digitalization and changes in people’s behavior times and to meet the needs of our customers from have reduced the amount of mail to be delivered. 1638 2020 Mail delivery has shrunk by Delivering Delivering Providing Voice mail Development over 60 pe
Slide 10: Mail decline and e-commerce growth
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 our revenue crisis when digitalization is from e-comme
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: Strategic priorities: customer experience, efficiency, employees, Zero Carbon 2030
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
Tomorrow's Posti is a modern delivery and fulfillment company with progressive profitability
Slide 15: Transportation, Warehousing, Sorting, Delivery
Transportation Warehousing Sorting Delivery
Slide 16: Posti's employees, data and technology, high-volume network
Posti’s employees as the best experts in their field Pioneers in data and technology High-volume network
Slide 17: Posti's own CO2 emissions
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 four 70000 million kilometers driven with renewable diesel, elec
Slide 18: Posti will re-focus its business portfolio
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-commerce logist
Slide 19: Customer experience, parcel locker network and operations
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 automates in Finland capacity and tracking, delivery option selection as well as automation as well as in OmaPos
Slide 20: Financials
Financials
Slide 21: Q4 net sales grew by 16.0% to EUR 455.9 million
Q4 net sales grew by 16.0% to EUR 455.9 (392.9) million External net sales by segment of continuing operations, Group’s net sales of continuing operations, EUR million EUR million 500 500 455.9 450 450 29.1 396.6 384.2 393.8 392.3 392.9 14.1 400 381.2 381.2 400 20.2 18.9 23.0 17.8 22.5 20.7 12.9 23.
Slide 22: Q4 adjusted operating result improved to EUR 33.5 million
Q4 adjusted operating result improved to EUR 33.5 (4.4) million Group’s adjusted operating result of continuing 2020 Q4 adjusted operating result by segment, operations, EUR million and as a percent of net sales EUR million and as a percent of net sales 2019 2020 14.4% -1.9% 40 8.8% 2.0 -0.5 7.3% -4
Slide 23: Key figures
10-12 1-12 10-12 2020 % % 1-12 2020 % % 2019**** 2019**** Net sales, EUR million* 455.9 392.9 1,613.6 1,564.6 Adjusted EBITDA, EUR million* 64.1 14.1% 34.0** 8.7%** 186.5 11.6% 152.3** 9.7%** EBITDA, EUR million* 56.0 12.3% 32.8 8.4% 177.6 11.0% 140.6 9.0% Adjusted operating result, EUR million* 33.
Slide 24: Outlook and long-term financial targets
Outlook and long-term financial targets
Slide 25: 2021 outlook
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 adjusted EBITDA was EUR 18
Slide 26: Long-term financial targets (previous)
Adjusted operating result percentage 4% Net debt / Adjusted EBITDA** less than 2.0x 5 1.5x 1.2x 4.1 1.1x % 4 1.0x 2.9 3.0 3 2.6 0.5x 2.3 0.0x 2 -0.5x -0.3x 1 -0.4x -1.0x -0.7x 0 2016 2017 2018 2019* 2020 2016 2017 2018 2019* 2020 Return on capital employed 10% Continuously increasing ordinary divide
Slide 27: 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: October-December
October-December 10-12 % of 10-12 % of • Net sales increased to EUR 413.0 (370.1) million EUR million 2020 Net sales 2019 Net sales • Increased in all business groups excluding Net sales 413.0 370.1 Freight Services Net sales change, % 11.6% -6.0% • The growth was mainly due to the record- high parc
Slide 30: Mail, Parcel and Logistics Services: January-December
January-December % of % of • Net sales were at the previous year’s level, EUR EUR million 1-12 2020 1-12 2019 Net sales Net sales 1,481.6 (1,482.2) million Net sales 1,481.6 1,482.2 • Increased in Parcel and eCommerce and Transval but decreased in other business Net sales change, % 0.0% 1.7% groups
Slide 31: Itella Russia: October-December
October-December 10-12 % of 10-12 % of • Reported euro-denominated net sales EUR million 2020 Net sales 2019 Net sales decreased by 38.6% to EUR 14.1 (23.0) million Net sales 14.1 23.0 • Net sales decreased in Contract Logistics Net sales change, % -38.6% -15.5% due to restructuring actions of wareh
Slide 32: Itella Russia: January-December
January-December % of % of • Reported euro-denominated net sales EUR million 1-12 2020 1-12 2019 Net sales Net sales decreased by 29.6% to EUR 58.3 (82.8) million Net sales 58.3 82.8 • Net sales decreased in Contract Logistics Net sales change, % -29.6% -20.3% due to restructuring actions of warehou
Slide 33: Aditro Logistics: October-December
October-December 10-12 % of • Net sales were EUR 29.1 million EUR million 2020 Net sales • Aditro Logistics’ operations consists of Net sales 29.1 contract logistics, transportation and staffing businesses Net sales change, % • Especially contract logistics and Adjusted EBITDA 3.6 12.4% transportati
Slide 34: Aditro Logistics: January-December
January-December* % of • Net sales were EUR 74.7 million EUR million 1-12 2020 Net sales • Especially contract logistics and Net sales 74.7 transportation businesses were impacted by COVID-19 Net sales change, % • The customer mix changes that were carried Adjusted EBITDA 10.2 13.6% out as planned d
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