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Q3 2012
Norway Post
1
Agenda Q3 2012
PART 1:

Highlights and developments
by CEO Dag Mejdell
PART 2:

Results and Segment Review
by CFO Tone Wille
PART 3:

Q&A
2
Agenda Q3 2012
PART 1:
 Highlights and developments
by CEO Dag Mejdell
by
3
Q3 2012 Highlights

Statoil contract for supply of logistics
services on the Norwegian continental shelf

Organisational changes from 1 October,
in which the logistics segment is organised
into two divisions according to country and
a separate e-commerce division is
established

Acquisition of "logistics company" in
Sweden

Major focus on e-commerce

The draft fiscal budget includes MNOK
353 to Norway Post in government
procurements as well as dividends from
Norway Post of MNOK 217
4
Q3 2012 Highlights





Operating revenues:
MNOK 16,800, the same as last year
Earnings before interest and taxes*:
MNOK 719, 21% up from 2011
Return on invested capital*:
19.7%, compared with 15.4% last year
Impact of efficiency programme:
approximately MNOK 2,670 since 2008
Delivery quality of A (priority) mail in
Q3: 85.7%
* Before non-recurring items and write-downs
5
HSE efforts produce results

10,0 %

9,0 %

From 9.2% to 6.8%*
430 additional employees at
work
Estimated gain for society
MNOK 222
8,0 %

7,0 %
6,0 %

Norway Post Group (total)
Labor market in Norway
Sick leave as at 30
September was 0.6
percentage points lower than
at the same time last year
Norway Post approaching the
level in the Norwegian labour
market
* Moving 12-month average
6
HSE efforts produce results
16
15
12 months trend

14
Significant reduction of work
injuries
13
12
11
10

12 month trend H1 value was
6.6 as of September, which is
5.2 ahead of last year
9
8
7
6
7
Operating income (MNOK)
25 000
20 000
22 981
15 000
23 940
22 613
22 451
10 000
16 883
Q3 2011
16 800
5 000
0
2008
2009
2010
2011
Q3 2012
8
Earnings (EBIT) before non-recurring items and
write-downs (MNOK)
1 000
1 051
952
500
772
595
719
Q3 2011
275
0
2008
2009
2010
2011
Q3 2012
9
Operating income from foreign companies
 Operating income in MNOK
7 000
6 000
6 446
5 000
5 855
4 000
3 000
4 886
accounted for 28.2% of the Group's operating
income as of Q3, down 0.3% from last year
1 000
0
5 871
4 805
3 967
2 000
Operating income from foreign companies
5 959
4 730
YTD
2011
1 429
2004
1 658
2005
2006
2007
2008
2009
2010
2011
YTD
2012
10
New corporate structure at Norway Post – increased
focus on e-commerce and Sweden
Norway Post
Dag Mejdell
Economics/Finance/IT
Tone Wille
HR and HS&E
Randi Løvland
Communication
Elisabeth Gjølme
Mail
Gro Bakstad
The mail segment in
Norway
Bring Citymail
Bring Dialog
E-commerce
Gunnar Henriksen
Develop e-commerce
services and concepts.
Responsibility for the
largest and most
important B2C
customers in the Nordic
countries
Logistics Norway
Logistics Nordic
The logistics segment
in Norway (Parcels,
Cargo, Frigo,
Warehousing), and
logistics outside the
Nordic region
The logistics segment
in Sweden, Denmark
and Finland (Parcels,
Cargo, Frigo,
Warehousing and
Supply Services), as
well as
Bring Express
Tore K. Nilsen
Tim Jørnsen
11
Southern Sweden is becoming increasingly important
as a base for distribution to the entire Nordic region
Areas in southern Sweden are important
distribution centres for the Nordic region
Important areas for Nordic distribution centres are
 Stockholm
 Gothenburg
 Helsingborg/Malmö
 Jönköping/Nässjö
Important reasons
 Norway, Finland and Denmark can be reached within 12 hours
 Baltic states can be reached in 24 hours
 The largest consumer market in the Nordic countries
Multinational companies in various industries have
established distribution centres in Sweden
Consumer/retail
Electronics
Automotive
Industrial
12
Norway Post acquires Ekdahls Åkeri to strengthen its
domestic market position in Sweden

Ekdahls Åkeri was established in 1965

A logistics company which mainly consists of
transport agencies, trucks and terminal
operations. Offering cargo, part and full load
traffic and storage solutions

Operating revenues of about MSEK 640

Approximately 520 employees

The Company is located in Malmø,
Landskrona, Borlänge, Eskilstuna, Gøteborg,
Halmstad and Ljungby
Ekdahls Åkeri has a strategic position in the domestic market in Sweden.
Together with Bring’s resources and network in Sweden, the logistics services to
Swedish industrial customers will be enhanced.
13
E-commerce is the Group's main growth area


E-commerce is todays shopping
E-commerce used to be for the minority, now
"everyone" shops on-line.
•
9 of 10 say they shop online today,
regardless of age, gender and location

An increasingly cross-border market - Nordic
and global

Norway Post is investing in this market and is
now stepping up its efforts

Rapidly growing market, > 15% per year
The proportion of Norwegian consumers who buy physical goods on-line has
grown from about 20% in 2002 to 80% in 2012
14
Norway Post is focusing on e-commerce and
strengthening its services
People who shop online want small parcels delivered to
their mailbox and large items delivered to their door.
Therefore Norway Post will offer:





A new offer of "small parcels" in the mailbox from 2013
Extended offer of "Home delivery" of parcels, cargo and
letters that are too large for the mailbox
One day faster delivery of the Service Package in large
parts of southern Norway and Helgeland
Automatic notification by SMS/e-mail once a Service
Package is ready for collection at the post office/instore post office
Small parcels that go in the
mailbox
- i.e. less than 7 cm
Customers will be notified directly about delays by SMS
People want small parcels in their mailboxes and larger items delivered to
their doors
15
Statoil chose Bring Norway's biggest logistics contract ever
•
An expansion of Bring Cargo's 30-year long
collaboration with Statoil. Bring has now been given
the main responsibility for the oil logistics along the
Norwegian coast.
•
The Statoil contract has given Bring an even better
and broader platform for further investment in this
growth industry.
•
Bring has provided, and will provide, customised
transportation and forwarding solutions for Statoil by
road, rail, air and sea. Bring's so-called "oil express"
consists of 60 modern semi-trailers that serve
Statoil's oil bases along the Norwegian coast
16
Systembolaget has chosen Bring Express for
home delivery of wines and spirits in Sweden




Bring Express in Sweden has won the prestigious
contract to supply home delivery of
Systembolaget's products in a pilot scheme
The Swedish government has licensed a pilot
scheme for home delivery of alcoholic drinks in up
to 6 counties. The trial will be implemented in
stages
There are strict requirements for social controls in
the deliveries
The trial starts 6 November in Sollentuna, with
deliveries three days a week. Johanneshov,
Bromma and Nacka will follow
17
Q3 2012 Agenda
PART 2:

Results and Segment Review
by CFO Tone Wille
18
Result
Q3
Q3
2012
2011
Change
MNOK
5 443
5 566
-123
518
476
42
338
299
40
-
1
1
Write-downs
-7
2
9
Non-recurring expenses/(income)
345
296
50
29
31
-3
374
327
47
EBIT
-20
-40
20
Net financial items
354
287
67
104
85
-18
251
202
49
YTD
YTD
2012
2011
The year
Change
2011
16 800
16 883
-83
22 981
1 256
1 125
131
1 748
719
595
124
1 051
76
89
13
173
325
3
-322
20
318
503
-185
858
94
67
27
98
411
570
-159
956
-55
-125
71
-156
Earnings before tax
357
444
-88
800
Taxes
134
137
3
427
Profit after tax
223
307
-85
373
Operating revenues
EBITDA
EBIT before non-recurring items and
write-downs
EBIT before share of profit from
associates
Share of profit from associates
19
Norway Post's Segment Structure
group
mail
logistics
20
Segment distribution of external revenues
Change 2011 - 2012 in MNOK
Percentage of external revenues
in %
and %
0.3%
31
59%
58%
41%
42%
2012
2011
-112
-1.6%
Mail
Logistics
21
Segment
MAIL
Letter Products
Banking services
Dialogue services
22
Key figures
mail
logistics
Operating revenues
8 500

8 000
7 883
7 500
7 697
7 584
7 000
Operating revenues at the end of Q3 were lower
than last year

Volume decrease, addressed mail - 7.5%

Volume decrease, unaddressed mail - 1.7%

Volume growth, Bring Citymail, Sweden
6 500
Q3 2010
Growth
(%)
Q3 2011
Q3 2012
-2.3
-1.5
EBITDA
1 000

950
962

900
850
800
EBITDA
margin
(%)
Earnings before write-downs and non-recurring
items at the end of Q3 were 8% higher than last
year
893
891

Q3 2010
11.3
Q3 2011
11.6
Q3 2012
Spinnaker programme and other
profitability improvement measures
Conversion of 149 post offices to in-store post
offices launched
12.7
23
23
Segment
LOGISTICS
Parcels
Express
Cargo
Frigo
Warehousing
Supply Services
24
mail
logistics
Key figures

Operating revenues
11 000
10 573
10 500
Operating revenues at the end of Q3 were in line
with last year

Acquisitions in 2011 and 2012

Volume decrease for parcels - 4.6%
10 546
10 000
10 009

9 500

Decrease in domestic volumes

Growth in cross-border parcels
Strong competition and movement towards
low cost products in parcels operations
9 000
Q3 2010
Growth
(%)
Q3 2011
Q3 2012
5.6

-0.3
EBITDA
600
550

540
500
470
400

350
EBITDA
margin
(%)
Earnings before write-downs and non-recurring
items at the end of Q3 were 27% higher than last
year

450
300
Operating revenues outside Norway amounted to
MNOK 4,019, the same level as last year
370
Q3 2010
5.4
Q3 2011
3.5
Q3 2012
4.5

Revenue growth in most areas other than
the parcel market
The Spinnaker programme and other
profitability improvement measures
Purchase of Fredrikstad Transport & Spedisjon AS
in April 2012
25
25
Future prospects





Continued Growth - new contracts
and acquisitions
E-commerce - important growth
market, e-commerce division created
Efficiency Programmes - focus on
improving profitability, common
improvement- and performance culture
throughout the company
Digipost - adapt services offered to
new user needs. Recommendation
from Difi on public use of digital
solutions
The third EU Postal Directive further reservation process and
potential impact still unclear
26
Q3 2012 Agenda
PART 3:
 Q&A
27
Q3 2012
Norway Post
28