itella group presentation
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Itella Group presentationTRANSCRIPT
Your first choice in postal,logistics and eCommerce
services
Itella in Brief
Itella General Presentation2
• Daily postal services• Financial administration
processes• Logistics solutions
Services Net sales
• EUR 1,947 million
Operations in 11 countries
Personnel
• Share of international net sales31%
• 27,500 professionals
Net sales by Business Group
Mail Communications
OpusCapita
Logistics
57%
13%
30%
2013
Itella General Presentation3
FinlandRussiaSwedenNorwayDenmarkEstoniaLatviaLithuaniaPolandGermanySlovakia
Operationsin 11 countries
2013
Three Business Groups
Itella General Presentation4
Itella Mail Communications• Letter, publication, and direct mail delivery solutions• Domestic and international parcel services• Posti shops, postal agency shops, pickup outlets, and SmartPOST automatic
parcel terminals• Comprehensive solutions for online commerce• Electronic postal services, Netposti• Online tools for marketing communication• Analysis, target group, and register corrections services
Itella Logistics• International & domestic Air, Sea and Road freight• International & domestic Road express• Warehousing and other contract logistics• Integrated supply chain information management
OpusCapita• Outbound services• E-invoice operator• Finance and accounting services• Outsourcing• OpusCapita cash flow automation• Electronic order-supply chain
2013
Almost a 400-year-old history
Itella General Presentation5
Governor-General Per Brahe establishes postal services in Finland
A central postal administration is established for the postal services of autonomous Finland
The Telegraph is merged with the Finnish Post to form Post and Telegraph
Posts and Telecommunications of Finland becomes a state-owned enterprise
Postal and telecom services are demerged into separate companies
Internationalization begins with acquisitions in the Nordic countries
The early morning newspaper delivery business acquired from Sanoma Osakeyhtiö
The parent company’s name is changed to Itella Corporation
The new Postal Act takes effect in June
2007
2003
2001
1998
1990
1927
1811
1638
2011
2013
A Remarkable Role in Society
• Solid background: owned by the stateof Finland
• Itella Posti Oy is the only company inFinland with a universal serviceobligation determined in the Postal Act
• Itella is the only publisher of stamps inFinland
• The Post Museum presents, studiesand records Finnish cultural heritageand the changing faces of Finnishsociety through the history of postalservices
Itella General Presentation6 2013
Along in the development of theindustry
Permanent membership in international• PostEurope• Universal Postal Union (UPU) and• International Post Corporation (IPC)
Membership in Finland in• the Finnish Service Sector Employers’
association PALTA (a member associationof the Confederation of Finnish IndustriesEK)
• the Finnish Federation forCommunications and Teleinformatics(FiCom), and
• Finnish Business & Society (FiBS)
Itella General Presentation7 2013
Research and Development
Examples of development projectthemes are new payment solutions,automatic parcel terminals, Netposti, thetransport ordering system, and financialadministration service consepts.
Netposti• Letterbox in the Internet• A free service offered by Posti to all
Finns over 15 years
Itella General Presentation8 2013
Itella’s Personnel December 31, 2012
Itella General Presentation9
Number of Personnel
27,500
Itella’s personnel by gender
Women 41%, Men 59%
Itella’s personnel by businessgroup
Itella Mail Communications 17 800Itella Logistics 7 400OpusCapita 2 200Others 400
2013
Personnel by CountryBreakdown of Employment Contracts
• Finland 21,820• Russia 3,700• Poland 560• Sweden 400• Estonia 390• Norway 250• Denmark 220• Latvia 220• Lithuania 120• Germany 100• Slovakia 20
Itella General Presentation10
%
0
20
40
60
80
100
7,674 part-time employees (28%)20,142 full-time employees (72%)3,048 fixed-term employees (11%)24,768 permanent employees (89%)
2013
Corporate Strategy
Itella General Presentation11 2013
Itellan yleispresentaatio12
Inevitable decline in mail businesseCommerce explosion, while consumer decides
Russia as a growth marketAn era of slow growth in Europe
Satisfied customer
Succeeding withthe customer
Winningtogether
Takingresponsibility
Driving forimprovement and
innovation
Easy, fast, reliable and responsible.
High value solutions for customerMarket leader with profitable growth in Finland and in Russia
The engine of eCommerceStep ahead in postal industry transformation
Best workplace
Our mission is to provide smooth flow of tradeand ease of everyday life.
2013
Your first choice in postal, logisticsand eCommerce services.
VALUES
MEGATRENDS
STRATEGICGOALS
MISSION
CUSTOMERPROMISE
VISION 2020
Strategy
Recent financials
Itella General Presentation13 2013
Financial targets
Operating profit to exceed 5%
Return on invested capital atleast 10%
Gearing not to exceed 35%
Annual net sales at least in par withmarket growth
14
Net sales in Russia to double by 2020
Itella General Presentation2013
Key financial figuresJanuary-September
M€ 1-9/2013 1-9/2012
Net sales 1,448.0 1,404.1 Net sales declined in Mail Communications,but increased in Logistics’ road freight and inRussia.
EBITDA 79.7 94.8 Sales margin declined in MailCommunications and in Logistics.
Operating result(non-IFRS)*
24.1(1.7%)
40.4(2.9%)
Operating result decreased in MailCommunications and during Q1-Q2 inLogistics. Operating result improved inInformation.
Operating result -2.4(-0.2%)
29.9(2.1%)
Operating result includes non-recurring itemsEUR 26.5 million. Operating result decreasedin Mail Communications and in Logistics. Theoperating result improved in Information.
*) non-IFRS = excluding non-recurring items
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2
3
4
15 2013 Itella General Presentation
M€ 1-9/2013 1-9/2012
Consolidated cash flowfrom operating activities
9.8 55.8 Cash flow from operating activities declinedbecause of weaker operating result and thegrowth in working capital.
Return on investedcapital (ROIC), 12months
1.1 5.8 Return on invested capital is not on a targetedlevel.
Gearing 30.3 22.3 Because of seasonal fluctuation gearing isusually on the highest level in the end of Q3.
*) non-IFRS = excluding non-recurring items16
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2
3
2013
Key financial figuresJanuary-September
Itella General Presentation
Net sales grew in July-September
17Target: At least in par with market growth
264.4 257.0
188.1 210.1
60.3 61.3
7-9 2012 7-9 2013Itella Mail Communications Itella Logistics Itella Information
445.6 457.0
+2.6%
1.7%
-2.8%
11.7%
M€
Itella General Presentation2013
Net sales by georaphical areas inJuly-September 2013
18
Finland
Scandinavia
Russia and theBaltic countries
Other countries70 %
13 %
5 %12 %
M€ 7-9/2013 7-9/2012
Finland 319.5 295.0
Scandinavia 55.6 64.9
Russia and theBaltic countries
59.0 62.3
Other countries 22.9 23.3
Group 457.0 445.6
Itella General Presentation2013
* The growth in Q3 net sales in Russia was+11% in local currency.
Operating result* declined
19 Itella Oyj
12.5
-2.9
5.9
Itella Mail Communications Itella Logistics Itella Information
2.50.2
8.0
7-9/2012 7-9/2013
11.9
-33.1%
22.7%
-80.0%
M€
30.10.2013
7.2
* non-IFRS = excluding non-recurring items
ItellaMail Communications
Itella General Presentation20 2013
Itella Mail Communications
Itella General Presentation21
Net sales: € 1,167.6 million
Number of staff: 17,844
Deliveries: nearly 3 billion a year
Services
Countries of operation
Vision and mission
• Finland
• Estonia
• Russia
VisionThe market’s leading multi-channelforwarder of goods and information, asrequired by the customer’s recipients
MissionThe multi-channel distribution of society’sgoods and information
Key figures
• Letter, publication, and direct mail deliverysolutions
• Domestic and international parcel services• Posti shops, postal agency shops, pickup
outlets, and SmartPOST automatic parcelterminals
• Comprehensive solutions for onlinecommerce
• Electronic postla services, Netposti• Online tools for marketing communication• Analysis, target group, and register
corrections services
2013
Itella Mail Communications
Itella Mail Communications produces and developsmulti-channel distribution channel services forcompanies and communities. By doing thiscustomers can reach their own customerssuccessfully.
• Distribution services of the letters, packages andnewspapers in Finland. Through partnersworldwide.
• High-quality mail services under the Posti brandfor consumers.
• Direct customers are mainly companies andcommunities (about 95%).
Itella General Presentation22 2013
Service development to corporatecustomers
Itella General Presentation23
• Letter and newspaper services develop whencustomers' communication needs change.
• Service selection becomes more simple.• New service wholenesses for small and medium-sized
companies also in the net.• An electric tool which can be used to improve the
addressing of the shipment lot and to facilitate apreliminary work which precedes mailing.
• New versatile alternatives for receiving the shipmentswhich arrive at the companies.
• Solutions for targeted marketing in Finland and inMoscow in Russia.
• Climate friendly Itella Green: a basic property of theletters and papers without the surcharge.
2013
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Itella Logistics
Itella General Presentation25
Itella Logistics in Brief
Turnover: € 781.5 million
Number of staff: 7,391
Number of service warehouses: 45
Floor area of warehouses: Nearly one million square
meters
Number of road, air and sea shipments: 780,000
Services
Countries of operation
Vision and mission
• Finland
• Sweden
• Norway
• Denmark
VisionRegional top performer in service logistics
MissionWe offer logistics to create customer, personneland shareholder value
Key figures
• Global road, air, and sea freight• Domestic freight• Warehousing services• Logistics information system
• Estonia
• Latvia
• Lithuania
• Russia
2013
Local Intimacy, Global Reach
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FinlandHelsinkiLahtiTampereTurkuOuluKuopio
SwedenStockholmJönköpingBorås
NorwayOsloBergenStavangerKristiansandTrondheim
DenmarkHvidovreKoldingRisskov
LithuaniaVilniusKlaipedaKaunasLatvia
Riga
RussiaSt. PetersburgMoscowRostov-on-DonSamaraEkaterinburgNovosibirskVladivostok
EstoniaTallinn
2013 Itella General Presentation
Partnering with Itella in children'swear logistics
Itella General Presentation27
• Working with Itella is smooth and easy;the company is a true expert on
operating in Russia. The right products are inthe right place at the right time. This is thecornerstone for this type of industry, enablingus to efficiently expand our brand in Russia.
• Katariina KaislaLogistics Manager, Reima
”2013
Itella General Presentation28 2013
OpusCapita
OpusCapita
Itella General Presentation29
Services
Countries of operation
Vision and mission
Key figures
• Finland, Sweden, Norway, Denmark,
Germany, Poland, Estonia, Latvia,
Lithuania and Slovakia
• Presence almost everywhere in
Europe and North America through
the partnership network
Vision# 1 value provider in financial processesin Europe
MissionOptimization of financial transactionalprocesses
Net sales: € 270.1 million
Number of staff: 2,168
Number of customers: 10,000
Number of incoming invoices: over
30 million annually
• Outbound services• E-invoice operator• Finance and accounting services• Outsourcing• OpusCapita cash flow automation• Electronic order-supply chain
2013
OpusCapita – Part of Itella GroupPan European Financial Process Innovation Company
Itella General Presentation
• Over 300 outsourced Financeand Accounting processes
• Over 30 million incominginvoices processed annually
• Approximately 140 millionelectronic transactions deliveredyearly
• 1 800 million paperdocuments processed per year
• 1 300 million documentselectronically archived annually
30 2013
OpusCapita’s Global Success
198201
247 247260
274 270
0
50
100
150
200
250
300
2006 2007 2008 2009 2010 2011 2012
Net sales (Meur)
• Operates in 10countries in Europe
• Roots in informationlogistics
• Strong growth byfocusing onfinancial processinnovation
• Over 20 years ofexperience with10,000 customers
Itella General Presentation31 2013
Corporate Responsibility
Itella General Presentation32 2013
Corporate Responsibility at Itella
• Responsibility has been the cornerstone of Itella’s operations for nearly400 years– Corporate responsibility is part of Itella’s strategy and based on our
values– Our Corporate Responsibility Principles define the essential
commitments and sectors of Itella’s corporate responsibility. Theprinciples are concretized in the Employee Code of Conduct
• We are committed to the UN Global Compact principles– Fundamental rights at work, the eradication of corruption,
environmental protection, human rights• We measure and prepare reports on corporate responsibility
according to the GRI guidelines (GRI = Global Reporting Initiative) andwe also follow the reporting model set for the state-owned companies
• Corporate responsibility comprises four sectors:finance, environment, people, society
Itella General Presentation33 2013
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SOCIAL RESPONSIBILITY- Reliability- Nationwide services in Finland- Ethical principles
PEOPLE RESPONSIBILITY
- Well-being at work- Good leadership- Diverse workplace
à The best empoyer in its sector
ENVIRONMENTALRESPONSIBILITY
- Energy-efficiency- Green products- Renewable energy
à Environmental efficiency
FINANCIAL RESPONSIBILITY
- Long term view- Proactiveness- Innovativeness
à Profitable growth
Itella is a reliable and open bearerof responsibility
à Functional infrastructure
Itella General Presentation2013
Examples of Itella’s corporateresponsibility
Itella General Presentation35
• Because of Itella’s real estates’ energy saving program electricityconsumption reduced by 7% and heat consumption by 11% in 2011in Finland (saving of € 1.1 MEUR).
• In the fall of 2011, Itella’s natural gas vehicles switched to adomestic brand of renewable biogas, with exceptionally low carbondioxide and other greenhouse gas emissions as well as lowparticulate emissions in comparison to conventional fuels.
• The logistics center under construction in Pennala pays attention toenvironmental issues comprehensively.
• Already 70% of Itella’s staff works in an office that has ISO 14001environmental certificate.
• In 2011 Itella became the first postal company in the world to offerentirely carbon-neutral delivery services.
• Itella received The Environmental Achievement of the Year awardat the international postal industry fair in September 2011.
• Itella was granted the HR Deed of the Year competition for 2011with its project aiming to provide more well-being throughinteractive and participatory leadership.
2013
Smart Move
36 Itella General Presentation2013