October-December 2014

1. The Group's net sales decreased by 7.0% to EUR 491.7 (528.8) million in October-December.
2. Net sales decreased by 2.7% in Itella Mail Communications, by 9.0% in Itella Logistics and by 26.7% in Itella Russia, and increased by 2.6% in OpusCapita. Measured in local currency, Itella Russia's net sales increased by 0.7%.
3. Posti Group's operating result before non-recurring items was EUR 23.5 (26.3) million, representing 4.8% (5.0%) of net sales. The operating result before non-recurring items improved to EUR 35.8 (33.8) million in Itella Mail Communications, but decreased to EUR -11.0 (-8.9) million in Itella Logistics, to EUR 2.1 (2.4) million in Itella Russia and to EUR 3.4 (4.3) million in OpusCapita.
4. Posti Group's operating result for the fourth quarter was EUR 10.9 (12.3) million, or 2.2% (2.3%) of net sales. Non-recurring items recognized during the period totaled EUR 12.6 (14.0) million.
5. A new one-year collective agreement was signed for mail communications and logistics area in the end of October. The agreement covers approximately 18,000 employees.
   In late 2014, Posti gave up air and sea freight in Scandinavia as well as service warehouses in Denmark and outsourced the distribution logistics within Scandinavia. Service warehouses in Sweden and Norway will be given up in 2015.
6. On October 1, 2014, OpusCapita acquired the Norwegian Norian Group.

Year 2014

1. Posti Group's net sales decreased by 6.0% to EUR 1,858.7 (1,976.8) million. In local currencies, the decrease in net sales was 3.5%. International operations constituted 26.9% (28.9%) of net sales.
2. Net sales decreased by 1.9% in Itella Mail Communications, by 8.7% in Itella Logistics, by 16.3% in Itella Russia, and by 1.4% in OpusCapita. Measured in local currency, Itella Russia's net sales increased by 0.7%.
3. The operating result before non-recurring items improved slightly and amounted to EUR 50.8 (50.5) million, or 2.7% (2.6%) of net sales.
4. The operating result decreased to EUR 5.8 (9.9) million, or 0.3% (0.5%) of net sales. The operating result was affected by EUR 45.0 (40.5) million in non-recurring items, of which EUR 25.8 (17.5) million was related to personnel restructuring, with other non-recurring items totaling EUR 19.2 (23.0) million.
5. The result before taxes was EUR -4.6 (-2.4) million.
6. The Group's cash flow from operating activities improved, amounting to EUR 93.2 (81.4) million before investments.
7. Gearing was 17.2% (21.1%). Equity ratio stood at 45.9% (47.5%). The substantial depreciation of the ruble had a negative effect on the equity ratio.
8. In August, Posti launched a new, EUR 75 million performance improvement program for 2015-2016. Throughout the year, the company conducted several cooperation negotiations, and the number of employees decreased by 2,588 year-on-year.
9. The Board of Directors proposes to the Annual General Meeting that no dividend be distributed for 2014.

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Source: Posti Group