Posti Group Corporation Interim Report January-September 2016

July-September 2016

Financial highlights

• Group's net sales decreased by 0.5% to EUR 371.5 (373.5) million. Comparable net sales decreased by 2.9% in July-September.
• Adjusted operating result declined and was EUR 7.5 (9.6) million, 2.0% (2.6%) of net sales.
• Operating result improved and amounted to EUR 14.5 (-2.2) million, representing 3.9% (-0.6%) of net sales.

Operational highlights

• Measured in waybills, Posti's domestic freight grew by 8%. Parcel volumes grew by 2%. The number of addressed letters declined by 9%.
• In August, Posti acquired Veine, a company that specializes in temperature-regulated logistics. The acquisition supports Posti's strategy to grow in food logistics. Posti and Veine can together offer competitive and nationwide food logistics solutions.
• In September, Posti Kiinteistöt sold a 74,000 square metre logistics warehouse property, Pennala, located in Orimattila.
• Mail items covered by the universal service obligation accounted for 3.9% of all of Posti's mail items in July-September.

January-September 2016

Financial highlights

• Group's net sales decreased by 5.6% in January-September and amounted to EUR 1,148.0 (1,215.6) million. Comparable net sales decreased by 3.9%.
• Adjusted operating result declined and was EUR 21.5 (23.3) million, 1.9% (1.9%) of net sales.
• Operating result declined and was EUR 13.6 (46.2) million, or 1.2% (3.8%) of net sales. Special items include a EUR 9.3 (44.4) million gain from sales of real estates. Other special items are described in connection with business group results.

Operational highlights

• Measured in waybills, Posti's domestic freight grew by 6% year-on-year. Parcel volumes grew by 1%. The number of addressed letters declined by 8%.
• OpusCapita sold its businesses serving the local markets in the Baltic countries to BaltCap in January.
• Itella Russia acquired the Russian courier company MaxiPost in March.
• By parliament's decision in June, The finnish State can decrease its ownership at Posti Group Corporation. In accordance with Government Resolution on Ownership Steering Policy, 49.9% of the ownership of Posti Group Corporation will be transferred to a new state-owned development company, Vake Oy, which was established in August. The Finnish State's direct holding will remain at 50.1%.
• OpusCapita acquired the Germany-based software company jCatalog Software in April. The acquisition supports OpusCapita's strategy to build a global buyer-supplier ecosystem offering and expands its geographical reach.
• Mail items covered by the universal service obligation accounted for 4.4% of all of Posti's mail items in January-September.

Posti changed its terminology for Alternative Performance Measures in accordance with the new guidelines issued by the European Securities and Markets Authority (ESMA) as of the interim report for the second quarter of 2016. "Non-recurring items" was replaced by "special items". "Operating result before non-recurring items" was replaced by "adjusted operating result". The definitions for these performance measures and for items affecting the comparability of reported figures are provided in the section "Calculation of key figures" of this interim report and at www.posti.com/financials.

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Source: Posti Group