in Real-time World Jari Annala Itella Information Oy

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1 Leading and Growing Business in Real-time World Jari Annala Itella Information Oy

2 Itella Group Itella provides its customers with solutions for managing information and material flows. Turnover: 1.7 billion euros (2007) Operating profit: 102 million euros (2007) Operations in 10 European countries (2007) employees (2007) 12% Information 36% Logistics 51% Mail Communication

3 Global Geo-Economics of Material Logistics In a global world any point can be a center Itella s home has become the center Silk Road #2 by far the most dynamic logistic axis in the World Economy a root driver of market growth Itella s home = North-West Terminal Americas East Asia Silk Road India Trade Flows CIS Middle East Levers of the Eastern Growth EU

4 European p Geo-Economics of Information Logistics In the Internet Economy geography doesn t really matter it is all about innovation Itella s home Itella s Nordic Cluster of Innovation Nokia, Ericsson, ZED, Linux, Li M MySQL, SQL Sk Skype, iirc, Habbo,. Î From the Nordic & Baltic lead to a Pan-European Service Provider Jari Annala/Itella Information Oy

5 Global Strategy of Itella CUSTOMER Media Retail Services CUSTOMER S DEMAND PROCESSES Finance Marketing Supply Chain Information flow Material Flow CORE COMPETENCES, COMPETITIVE AVANTAGE Customer Processes, Service Productization, IT

6 Definition of Real-time Occurring immediately Real-time - of or relating to computer systems that update information at the same rate they receive information Current, as with quotes or news. Opposite of delayed My definition today: Happening almost immediately and in integrated t manner, delay can be seconds, minutes, hours or days depending on the context.

7 Dimensions of Real-time TOIMITTAJA Management Customer Interaction Supply Chain Integration Itella Corporation Supply Chain Partners Administration

8 Innovative Management of Supply Chain Customer Business Users Itella Logistics Process Management Dashboard Inbound Warehousing Outbound Customer & Partner ERP Systems Itella s Event Management Systems Transaction Information Retrieval Systems (EDI, RFID, )

9 Outsourced Logistics Keeps Your Focus in Business Growth Working with the same reliable and longterm partner is easy, hassle-free and beneficial Samuli Romppainen, Vice president

10 Itella Information Cares for Your Invoicing

11 Dimensions of Real-time TOIMITTAJA Management Customer Interaction Supply Chain Integration Itella Corporation Supply Chain Partners Administration

12 Self Service is Better Service Customer On-line Experience: Ordering Getting product information Reporting Tracking Invoicing

13 Change of Address -service in Internet Benefits for the customer: 24/7 better SLA (faster changes) better quality and less mistakes 45,0 % of the address changes done in 40,0 Internet 35,0 30,00 25,0 20,0 15,0 10,0 5,0 0,0 Jan 2005 Jan 2006 Jan 2007 Aug 2008

14 Itella vision for reachability Follow Me - portal Different Locations Corporate Customer

15 Integrated Postal Delivery Network Control Tower Control Tower Dynamic Resource Allocation Extranet user accounts: Share of Electronic list: 92,5% Postal Network Digital Maps Route Planning 7000 Delivery Routes Mail men

16 Dimensions of Real-time TOIMITTAJA Management Customer interaction Supply Chain Integration Itella Corporation Administration Supply Chain Partners

17 Streamline Administrative Processes for Savings Corporation * Provider Provider *) Source: Finland State Treasury 2007

18 Purchase Invoices Itella Corporation Share of einvoices 45,00 % 40,00 % 35,00 % 30,0000 % 25,00 % 20,00 % 15,00 % 10,00 % 5,00 % 000% 0,00 Jan/06 June/06 Jan/07 June/07 Jan/08 June/08 Jan/09 (est.)

19 State of Finland sets the bechmark! Share of einvoices (purchase) 8/2008 National Board of Taxes 70 % Centre Of Metrology 66 % Insurance Supervisory Authority 66 % Ministry of Finance 64 % Radiation and Nuclear Safety Authority (STUK) 61 % National Board of Antiquities 61 % Ministry of Social Affairs and Health 60 % VTT Technical Research Centre of Finland 57 % National Public Health Institute 57 % Statistics Finland 54 % University of Kuopio 52 %

20 Dimensions of Real-time TOIMITTAJA Management Customer interaction Supply Chain Integration Itella Corporation Supply Chain Partners Administration

21 Itella Corporate Growth Revenue 1069 M Revenue ~2000 M 30+ M&A s 1 Country 14 Countries Organic Growth Personnel Personnel ~30000

22 Our Challenge Financial Financial Financial Financial Financial Financial Financial Financial Financial Financial Est Financial Est Financial Est Financial Est Swe Nor Dk Ger Pl Fin Lat Swe Dk Data CRM CRM CRM CRM Warehouses Data CRM CRM Est Est Dk CRM CRM Data CRM Est Warehouses Lat Data Swe Dk Dk Dk CRM Dk Warehouses Data Management Management Warehouses Lat CRM CRM CRM Warehouses Data Swe Reports Reports Lat Lat Dk Fin Pl Data Warehouses Fin Swe Lat Warehouses Lat Data Fin Warehouses Lat CRM CRM Dk CRM CRM CRM Production Production Production CRMDk Dk Dk CRM ERP ERP system system Dk Dk ERP ERP system ERP Lat ERP Fin Ger Swe Est Ger Lat Est Est

23 Our Solution: One Business Platform Spider - New Management Reporting Financial Financial Financial Financial systems Financial systems systems systems Currency Management Reports Data warehouses CRM CRM CRM CRM Production Production Production systems systems systems Production systems ERP ERP ERP ERP

24 Spider Management Information System to Guide in Decision i Making in a Complex World

25 Our Target Better Customer Experience Customer Loyalty Personalized Touch Availability 24/7 Value up Speed & Visibility Automation Less Routine work More Efficient Process Paperless Processes Optimisation Costs Down

26 Smart Move

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