Posti aims to be the number one choice for its customers as the provider of postal and logistics services in 2018. The most important financial target for Posti is to maintain good profitability.

The change taking place in the postal sector will become more rapid in the next few years when letter and publication distribution volumes fall as a result of electronic communications. Digitalization will change Posti's current business models and create new services and growth opportunities.

At the same time, competition will become more fierce in postal and logistics services, and the role of e-commerce will become more prominent. The best customer experience, multi-channel service, the capability to reform and competent personnel are the most important success factors.

These trends lie in the background of Posti Group's strategy to renew the company into a customer-oriented, first-class, profitable postal and logistics service company.

Posti's strategic focus areas 2015 - 2017

The Board of Directors of Posti Group has specified the company's strategic goals for 2015 - 2017. They are targeted at renewing Posti and improving profitability in new services.

1. We will defend the distribution business of publications and direct marketing by extending the product lifecycle so that it is as long as possible. We will shape our capacity with the aim of maintaining good cost competitiveness and service capability when letter and publication volumes are decreasing.
2. We are Finland's leading logistics service provider in parcel, warehouse and transport businesses and a major logistics operator in Russia. We create solutions that enable the on-line shopping of goods.
3. We improve the customer experience through multi-channel digital services and develop Posti's services to meet customers' needs.
4. Posti has access to an efficient, process controlled, digitalized nationwide production network that is managed in a high quality manner and on which we will base our growth.
5. OpusCapita is an important part of our Group and will be turned into a strong provider of financial management software, processes and automation services in Northern Europe.
6. We look for synergy benefits from new growing markets. Home services, meal deliveries and food logistics make use of Posti's nationwide distribution network. We develop new data and analytics services to meet customers' needs.
7. We develop the competence of our personnel in new services and the capability to address the opportunities of digitalizing business systematically. Our aim is to be the best workplace in the industry.

Posti is the largest logistics company in Finland

Heikki Malinen, President and CEO of Posti Group, says that in the new strategy the Group's postal and logistics operations will focus on Finland, Russia and the Baltic countries.

- We are Finland's largest postal and logistics company with the broadest service range and network. With its strategy, OpusCapita, in turn, aims to be a strong provider of financial management software and processes in Northern Europe, Malinen says about the company's mindset.

Posti renews in order to secure its profitability

Faced by increasingly fierce competition and declining postal volumes, it is critically important for Posti to secure its competitiveness and profitability. The current result is not at the desired level.

Posti's goal is to turn logistics and the domestic freight business clearly profitable. There is a need to hurry the renewal in postal services, due to the dramatic decline in postal volumes. Efficiency and productivity are also improved by utilizing new technology and increasing automation.

- For profitability, we must be able to be one step ahead of the transformation of the postal industry. Through renewal, we ensure sufficient profit performance, says Malinen.

Posti Group Corporation's financial targets

1. Operating profit percentage exceeds 5%
2. Return on invested capital is at least 10%
3. Gearing does not exceed 35%
4. More than 10% of the Group's net sales comes from new business areas in 2018.

Posti focuses on digital services and business solutions

Digitalization offers opportunities for improving the Group's services and developing new business operations.

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Source: Posti