Posten Norge Results as of 3 rd quarter 2015 1
3 rd quarter 2015 PART 1: Highlights and development PART 2: Results and Segment Review 2
3 rd quarter 2015 PART 1: Highlights and development 3
Highlights Important events 3 rd quarter 2015 The growth in e-commerce continues. Per third quarter 2015, the Group's total e-commerce volume increased by 7%. The new Postal Services Act is effective from 1 January 2016. The act allows discontinuance of mail distribution on Saturdays. The law will contribute to the Group s ability to adjust in line with changing customer needs. At the end of the third quarter, Digipost had passed 540 000 users. Absence due to sickness was 6.1 % the last twelve months, a decrease of 0.3 - percentage points from 2014. Delivery quality for A-mail in second quarter 2015: 87.3 % (2.3 percentage points above the licence requirement). Second-generation biodiesel has now been tested on trucks with good results, and will therefore be used on an increased number of trucks in Norway. 4
Financial highlights 3 rd quarter 2015 Operating revenues: MNOK 18 451, up 3.4 % from 2014 Earnings before interest and taxes*: MNOK 472, down 9,2 % from 2014 Return on invested capital (last 12 months)*: 12.8 %, down 4 percentage points from same period in 2014 Return on equity after tax (last 12 months): 11 %, up 4.9 percentage points from the same period 2014 * Before non-recurring items and write-downs 5
Operating revenues (MNOK) 25 000 22 613 22 451 22 981 22 925 23 557 24 404 20 000 3,4 % 15 000 10 000 17 852 18 451 5 000 0 2009 2010 2011 2012 2013 2014 2015 Per 2014 Per 2015 6
Earnings (EBIT) before non-recurring items and write-downs (MNOK) 1 116 1 125 1 051 1 000 942 933 772-9,2 % 500 520 472 0 2009 2010 2011 2012 2013 2014 2015 Per 2014 Per 2015 7
Operating revenues from foreign companies 8 000 Operating revenues in MNOK 7 190 8 122 8,9 % 7 000 6 443 6 434 6 000 5 871 5 855 5 959 5 000 4 886 4 000 3 967 3 000 5 931 6 457 2 000 1 000 0 1 658 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Per 2014 Per 2015 Operating revenues from foreign companies accounted for 35.0% of the Group's operating income, up 1.8 percentage points from last year 8
Results 2015 2014 MNOK YTD 2015 YTD 2014 Year 2014 6 044 5 809 Operating revenues 18 451 17 852 24 404 354 408 EBITDA 1 072 1 109 1 723 159 208 EBIT before non-recurring items and write-downs 472 520 933 2-2 Write-downs 4 142 282 5 5 Non-recurring expenses/(income) 90-6 -66 152 205 EBIT before share of profit from associates 379 384 718-5 -6 Share of profit from associates* 240 40 126 147 200 EBIT 619 424 844-32 -12 Net financial items -81-57 -123 115 188 Earnings before tax 537 367 720 35 66 Taxes 90 153 271 80 122 Profit after tax 447 214 449 * Includes gain from sale of EVRY ASA 9
3 rd quarter 2015 PART 2: Results and Segment Review 10
Segment Structure Posten Norge Group Mail Logistics 11
Segment distribution of external revenues 20 000 18 000 16 000 14 000 12 000 10 000 60 % 62 % 63 % 8 000 6 000 4 000 40 % 38 % 37 % 2 000 0 2013 2014 2015 Mail Logistics 12
Segment Mail mail logistics Letter Products Banking services Dialogue services 13
Key figures YTD mail logistics Operating revenues per third quarter 2015 were MNOK 7 353, somewhat below last year. Volume decrease addressed mail 5.5 % 8 000 7 800 7 600 Operating revenues 7 697 7 549 Volume decrease unaddressed mail 5.6 % Volume decrease in Bring CityMail Sweden 0.7 % 7 400 7 200 7 584 7 390 7 353 7 000 2011 2012 2013 2014 2015 Growth (%) -1,5-0,5-2,5-0,5 Earnings before write-downs and non-recurring items was MNOK 543 per third quarter 2015, marginally below same period last year. Postive effects of cost reducing measures compensated for the decrease in volume. 800 750 700 650 600 550 500 EBITE 634 2011 707 2012 641 2013 556 2014 543 2015 EBITEmargin (%) 8,2 9,3 8,5 7,5 7,4 14
Segment Logistics mail logistics Parcels Express Cargo Frigo Warehousing Supply Services 15
Key figures YTD mail logistics Operating revenues per third quarter 2015 were MNOK 12 394, a growth of 5.7 % from the same period in 2014. Growth in revenues for the nordic operations. The increase in private e-commerce continued. Significantly affected by lower activities in the oil industry. Earnings before write-downs and non-recurring items per third quarter 2015 was MNOK 115, a decrease of MNOK 105 compared to same period in 2014. A decrease in results as a consequense of the downturn in the oil industry and generally lower activity in the Norwegian economy. Still challenging market conditions for the logistic operations in Sweden and Denmark, particularly within the field of freight. 13 000 12 500 12 000 11 500 11 000 10 500 10 000 Operating revenues 10 573 2011 139 10 546 2012 175 10 953 2013 115 11 729 2014 220 12 394 2015 Growth (%) -0,3 3,9 7,1 5,7 250 200 150 100 50 0 EBITE 2011 2012 2013 2014 115 2015 EBITEmargin (%) 3,9 5,0 3,1 1,9 0,9
Summary The new Postal Services Act effective from 1 January 2016. The Group continues its focus on the Logistic operations. The establishment of the new terminal building structure in Norway is according to plan. Reduced activity in the oil industry affects the development of the logistics market in Norway in general. The Group s environmental focus pays off. The Group now demonstrates a satisfactory progression against the 2020 target (40 %) and is working with several initiatives. With 1 300 electric vehicles in operation, 20 towns/communities in Norway will benefit from a CO 2 -free mail distribution in 2015. 17