Norway Post Results as of 1 st half-year 2014

Transcription

1 Norway Post Results as of 1 st half-year

2 Agenda 1 st half-year 2014 PART 1: Highlights and developments by CEO Dag Mejdell PART 2: Results and Segment Review by CFO Tone Wille PART 3: Q&A 2

3 Agenda 1 st half-year 2014 PART 1: Highlights and developments by CEO Dag Mejdell 3

4 Highlights Important events 1 st half-year 2014 Acquisition of all shares in West Cargo Vårgårda AB, Smartpak Sweden AB and Kirkestuen Transport AS Bring Citymail Sweden AB established a joint venture with the distribution unit in the Swedish newspapers in the Schibsted and Bonnier-groups In March Digipost won the contract to deliver digital mailboxes to the public sector 122 post offices was replaced by new Post in Shops as of 1 st half-year The conversion is according to plan Sick-leave of 6.6% in the 1 st half-year 2014, a reduction of 0.3 percentage points from

5 Financial highlights 1 st half-year 2014 Operating revenues: MNOK , up 4.7% from 2013 Earnings before interest and taxes*: MNOK 312, up 39.6 % from 2013 Return on invested capital (last 12 months)*: 17.9%, up 2.8 percentage points from 2013 Return on equity after tax (last 12 months): 10.9%, up 3.2 percentage points from 2013 Special items in 1 st half-year 2014: Impairment of goodwill in the segment Logistics Delivery quality for A-mail 1 st half year 2014: 87% (Q2: 87%) *Before non-recurring items and write-downs 5

6 Operating income (MNOK) ,7 %

7 Earnings (EBIT) before non-recurring items and write-downs (MNOK) ,2 %

8 Operating income from foreign companies Operating income in MNOK ,6 % Operating income from foreign companies accounted for 32.7% of the Group's operating income, up 2.3 percentage points from last year

9 Results Q Q Change MNOK YTD 2014 YTD 2013 Change Year Operating revenues EBITDA EBIT before non-recurring items and write-downs Write-downs Non-recurring expenses/(income) EBIT before share of profit from associates Share of profit from associates EBIT Net financial items Earnings before tax Taxes Profit after tax

10 Norway Post supports EVRY s strategic process The Board of Every ASA has decided to initiate a structured process to pursue various strategic opportunities, including the sale of the company. Norway Post, which owns 40 per cent of EVRY ASA, supports this process. Norway Post bought Statens Datasentral in This company was strengthened and developed, including by a number of acquisitions, to form ErgoGroup. In 2010, ErgoGroup AS merged with AS EDB to form Evry. 10

11 E-commerce is growing. Norway Post is strengthening Bring s delivery network in Denmark and Sweden Digitisation is resulting in increased e- commerce. E-commerce is Norway Post s most important growth area. The Group s first-half-year e- commerce volume increased by 7%. The market is increasingly cross-border Nordic and global. Posten and Bring have nationwide delivery networks for consumers (B2C) in Norway, Sweden and Denmark. The delivery network in Denmark is now being increased by around 400 shops and 300 parcel terminals. 11

12 Postmen and postwomen to be given an iphone and a new working day Norway Post has developed a new digital route book in order to more efficiently administer 4,000 delivery routes nationwide. Up to now, address lists have been updated on paper. One million sheets of paper will now be replaced by an app. Postmen and postwomen will start to use iphones. This solution is unique in the mail sector and will make the postman/woman s working day simpler. Every day, postmen/women deliver mail to 2.3 million households and companies in Norway 500,000 people move house each year. 600,000 people ask for their mail to be forwarded to them or stored when they are on holiday. 12

13 Agenda 1 st half-year 2014 PART 2: Results and Segment Review by CFO Tone Wille 13

14 Norway Post's Segment Structure group mail logistics 14

15 Segment distribution of external revenues % 59 % 61 % % 41 % 39 % 0 Q2-12 Q2-13 Q2-14 Mail Logistics 15

16 Segment Mail mail logistics Letter Products Banking services Dialogue services 16

17 Key Figures Operating revenues mail logistics Operating revenues 1 st half-year 2014 were MNOK 5 130, MNOK 50 lower than last year Volume decrease addressed mail 6.7% Volume increase unaddressed mail 1.6% H H H Considerable focus on digital solutions in both public sector and in unaddressed advertising Growth (%) -15,0 28,7-1,0-2,7-0,8 2,3-1, EBITDAmargin (%) EBITDA H H H ,2 15,7 13,6 15,3 12,8 17,2 12,6 Operating result before depreciation and non-recurring items were MNOK 644 in 1 st half-year 2014, 2,7% lower than corrensponding period in 2013 Positive effect of cost-reduction measures only partly compensated for the volume reductions Reduced government grant Year to date 122 post offices were converted to Post in Shops Bring Citymail Sweden AB established a joint venture with the distribution unit in the Swedish newspapers in the Schibsted and Bonnier-groups 17

18 Segment Logistics mail logistics Parcels Express Cargo Frigo Warehousing Supply Services 18

19 Key figures mail logistics Operating revenues H2 H2 H Operating revenues 1 st half-year 2014 were MNOK 7 761, an increase of MNOK 513 from last year Acquisitions in 2014 contribute to the revenue increase Growth in private e-commerce market, particially cross-boarder Part-load cargo increased volumes Increased activity within offshore Growth (%) EBITDAmargin (%) 13,2-0,3 0,9 0,1 3,0 5,9 7,1 EBITDA H H H ,8 5,2 3,6 6,5 1,8 5,5 3,4 Operating result before depreciation and non-recurring items 1 st half-year 2014 were MNOK 261, an increase of 103% from last year Growth in top-line combined with positive effects of cost measures Challenging economic cycles gives a demanding market situation for parts of the international transport area Acquisition of all shares in West Cargo Vårgårda AB, Smartpak Sweden AB and Kirkestuen Transport AS in 1 st half-year

20 Future focus areas Moderate growth in domestic economy, however a growth in the segment Logistics is expected due to an increase in the E- commerce market Continue targeted efforts in the Logistics segment strengthened its position in the segment Logistics due to several acquisitions of companies, which gives strengthened market position in Hedmark and Oppland, together with 600 new locators in Sweden E-commerce the Group has established a independent locators network for parcels, which covers 95% of all households in Denmark Digipost aims to be the preferred channel for digital mail for the public sector. Within Q all state agencies shall communicate digitally with their residents 20