PostNord’s business is based on the following values:
- Reliable - PostNord keeps its promises and delivers everywhere, securely, at the right time and to the right place.
- Accessible - PostNord is always close to its customers, listens to them and is committed to helping them meet their challenges.
- Business Partner - PostNord is a professional business partner to its customers and helps them solve their communication and logistics challenges.
- Environmentally sound - PostNord consciously works to reduce the impact of its operation on the environment.
PostNord strives to create long-term value for its owners and other stakeholders and to ensure the provision of universal postal service on a commercial basis. In 2011 PostNord adopted a new group strategy for the period through 2015 – Roadmap PostNord 2015.
Structural market changes challenge PostNord’s ability to run a profitable mail business. Meanwhile, the logistics market is growing and holds potential for a strong regional operator like PostNord to further expand its Nordic presence. An enhanced market position in logistics is also important in terms of meeting competition in the logistics industry.
PostNord’s strategy is to develop the company in accordance with our mission, vision and core values. The strategy involves a repositioning of the group’s operations in line with market changes in order to ensure profitability for Mail and develop the position of Logistics. The strategy was implemented according to plan during 2012.
The strategy’s management by objectives includes quality, environment and employee aspects – areas of key importance to PostNord’s long-term sustainable development.
Overall target picture
Fulfill rationale of the merger
PostNord will continue to fulfill the rationale of the 2009 Posten AB-Post Danmark A/S merger by securing a position as a leading operator on the Nordic logistics market and by maintaining good postal service in all of Sweden and all of Denmark, in view of the market’s ongoing structural changes.
Create financial value
PostNord will increase value for its owners by creating growth, improving profitability and utilizing the group’s capital resources more effectively.
PostNord will lay the groundwork for an IPO. This choice of direction involves factors such as focus on the growth of the Logistics business, profitability of the Mail businesses, returns for our owners and optimization of our capital structure – all of which are key to PostNord’s development, regardless of form of ownership.
Changes being implemented within the group in areas such as organization, management and governance of operations are aimed at improving coordination and efficiency and creating a more cohesive and strategically run group.
Strategies and activities
1. Invest in adaptation of Mail businesses – ensure profitability
PostNord is making vigorous efforts to reorganize the Mail businesses. The aim is to secure profitable mail operations based on a lower, but more sustainable, demand for physical mail:
- Reduce cost base and increase share of variable costs by adjusting workforce to lower mail volumes. Accomplished through continuous cost adjustments in combination with specific cost-reduction programs within production and administration.
- Investments within the framework of the new production strategy for Mail, adopted in 2010 and continued during 2012. The strategy includes reinvestments, chiefly in eco-efficient vehicles, equipment and buildings. It also includes the establishment of a new terminal structure in Sweden and associated investments in equipment to improve scalability and eco-efficiency. A similar terminal structure streamlining has already been carried out within the Danish operations.
- Dialogue with society and legislators regarding how future USOs and regulations should be designed in Sweden and Denmark to promote efficient, profitable future mail businesses that provide good service.
2. Development within Logistics – a leading Nordic logistics company
PostNord will develop its Logistics business towards a market leading position in the Nordic region. PostNord will take action and make investments to meet business sector demands for end-to-end solutions and cross-border capacity. This involves broadening the group’s product offer and market coverage in the Nordic region. This growth will take place:
- Organically within existing structures through additional sales and possibly through partnerships.
- Through add-on acquisitions.
With a broader logistics offer and added strength in submarkets where PostNord currently holds a weaker position, as well as a wider geographic coverage, the group will be better able to meet customer demand and to create additional opportunities for organic growth.
3. Increase in value of Strålfors
Services within information logistics are a key part of the group’s digital and physical communication offer for customers with large customer bases. Strålfors has taken measures in recent years to streamline the business in a number of key areas. Strålfors will continue to implement measures, including further improvement of profitability and growth through increased sale of services, chiefly in the areas of data management, marketing communication and service fulfillment.
4. Strategic development areas
PostNord is conducting a number of activities in areas that offer potential for synergies with existing services or services involving new fields of application for existing production resources. These areas include the continued development of our customer offer in the e-commerce market and PostNord’s advisory role within marketing communication.
5. Realize group synergies
Continuous efforts to improve efficiency and reduce costs are an integral part of PostNord’s daily operations. A special program to reduce administration costs was initiated and completed in 2012. PostNord will continue to lower overhead costs through continuous streamlining and coordination efforts within IT, purchasing and other administrative processes.
PostNord is currently implementing one of the largest investment programs in the Nordic region. The group’s investment requirements for fixed assets will total approximately SEK 7 billion for the 2013–2015 period. The largest investments are:
- Reinvestments in the Mail businesses, chiefly vehicles and equipment.
- Establishment of a new terminal structure for the Swedish Mail business and associated investments in equipment (including establishment of new terminals in Hallsberg and Rosersberg).
- Investments in a new terminal structure for the Logistics business in Sweden and investments to increase capacity in the logistics business in Norway.
The strategy for the period through 2015 gives rise to significant financing requirements for restructuring measures, investments and acquisitions. These requirements will be financed through:
- Improve cash flows from operating activities through increased profitability, etc.
- Release of capital through improved capital efficiency and utilization of invested capital.
- Optimize capital structure, including utilization of external financing.
- Allocation of capital and resources to the most value-driving activities.
PostNord’s intention is to distribute 40% of net profit to the owners, taking into account the implementation of group strategy and the group’s financial position and targets.