Message from Håkan Ericsson, President and CEO

2014 was an eventful year. Within the framework of our strategy, we implemented a new integrated organization, launched a new common brand and initiated a customized end-to-end offering. In addition, major restructuring programs were executed throughout the Group. All with the aim of ensuring our long-term profitability and competitiveness.

Our work on developing more customized end-to-end offerings is making good progress. For example, in the logistics business, we have signed an agreement with Denmark’s Blue Water Shipping for parcel and pallet logistics in the Nordic region. During the past quarter, we also signed numerous significant contracts with customers in the fast-growing e-commerce segment. Within the scope of our work on sustainability, the International Post Corporation (IPC) ranked PostNord gold for its qualitative environmental work.

Over Christmas, new e-commerce records were set with increased parcel volumes. In the face of continued digitalization, mail volumes fell as expected and showed a year-on-year decline of 8% in the fourth quarter, of which 17% in Denmark and 6% in Sweden. The corresponding outcome for the full year 2014 was a decline of 5% for the Group, 12% in Denmark and 4% in Sweden.

During the quarter, a further savings program was initiated, with related restructuring provisions being charged to earnings. As part of our capital efficiency program, the Group’s property on Köbmagergade in central Copenhagen was divested in the fourth quarter, making a positive contribution to earnings and cash flow. Adjusted for items affecting comparability, Group operating income totaled SEK 440m (344) in the fourth quarter and SEK 861m (826) for the full year.

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Source: PostNord