Developed corporate strategy focused on e-commerce

Due to continued digitization and the weak macro-economic trend, demand for mail distribution continues to decline. PostNord’s mail volumes have declined by about one-quarter in the past five years. At the same time, e-commerce is growing strongly – with double-digit growth in the Nordic region in 2013. Demand for Nordic logistics services is also on the rise, although still subject to price pressure.

-During the past few years we’ve cut our expenses dramatically and strengthened our position in the Nordic region, but a lot of work remains to be done. We need to step up the pace of our streamlining efforts, and the service development process needs to be expanded throughout the entire Group, said Håkan Ericsson, PostNord President and CEO.

PostNord is making a series of structural changes to counter the market trend and create greater financial value. The group’s strategy is being further developed and a new organization introduced. Country units are being set up to improve uniformity versus customers and to establish integrated production models. At the same time, a Nordic Mail & Communication business area and a corporate strategic unit for e-commerce (responsible for market and service development in each area across the Nordic region) are being formed. Strålfors will continue to operate as a subsidiary and will be strongly aligned with business area Mail & Communication.

-The initiatives we are taking will enable us to offer Nordic end-to-end solutions within Mail & Communication, logistics and e-commerce – improving our capacity to strengthen our customers’ businesses. In parallel with this, we are integrating the Mail and Logistics production operations, and this combination will allow us to grow more and improve PostNord’s profitability, said Mr. Ericsson.

The developed corporate strategy prioritizes securing profitability for Mail & Communication and further developing the Group’s position on the Nordic logistics market. Focus will be intensified on e-commerce and attractive, profitable service logistics solutions will be developed. The Group’s competitiveness will be strengthened, chiefly through additional streamlining efforts.

PostNord’s increased focus on e-commerce includes the development of innovative solutions on the Nordic market for delivery of physical mail items and sophisticated integration solutions.

- Our goal is to be the first choice for businesses as well as individual customers in the Nordic e-commerce market. PostNord will help businesses grow and become more competitive, and we’ll continue to be the first choice for senders and receivers of e-commerce items, said Mr. Ericsson.

One of the changes to be implemented is a new brand structure that gives the Group a clearer, more uniform profile. The Group’s PostNord brand will be given greater scope together with existing commercial brands.

The new organization will take effect as of April 1, 2014, and also involves changes to Group Management as of February 1, 2014. Financial reporting will mainly be done on the basis of the business areas and Strålfors.

PostNord’s Group Executive Team from February 1, 2014

Håkan Ericsson, President and Group CEO
K. B. Pedersen, Executive Vice President and Deputy CEO
Andreas Falkenmark, Head of Business Area PostNord Mail & Communication
Mats Johansson, Acting Head of Business Area PostNord Logistics
Per Samuelson, President of Strålfors
Anders Holm, Head of PostNord Sweden
Henning Christensen, Head of PostNord Denmark
Robin Olsen, Head of PostNord Norway and PostNord Finland
Annemarie Gardshol, Head of E-commerce & Corporate Clients and Chief Strategy Officer
Henrik Rättzén, Chief Financial Officer
Per Mossberg, Chief Communications Officer
Joss Delissen, Chief Information Officer
Finn Hansen, Chief HR Officer
Johanna Allert, Chief Technical Officer

PostNord’s strategy and prioritized areas

Group strategy is based on the strategy established in 2011 and has been developed with respect to the Group’s prioritized areas.

1. Secure profitability for Mail & Communication
PostNord is implementing structural changes within Mail & Communication aimed at securing profitability for the business in light of the declining demand for physical mail. This involves, among other things, streamlining production and administration to continue reducing the cost base and increasing the share of variable costs, making investments to optimize the production structure, and increasing scalability while lowering CO2 emissions. It also entails greater coordination of the Group’s communication offer and increased focus on value creation within Strålfors.

2. Nordic region’s leading logistics operator
To gain market share and become the Nordic region’s leading logistics operator, PostNord is developing its logistics operations by broadening its service offer and market presence. The business will continue to grow under profitability, primarily organically through upselling and partnerships. Growth may also occur through key acquisitions.

3. The leading e-commerce operator
PostNord will develop its position as the leading service partner for e-commerce to, from and within the Nordic region. The Group has a unique structure and capacity in the region that provides additional opportunities on which to capitalize. PostNord is also focusing on developing its service offer in this area, for customers as well as recipients.

4. Development of service logistics
PostNord is doing development work in several areas that involvethe new or expanded use of existing capacity and expertise. Examples of this include the development of attractive offers for various types of home delivery and other service logistics, and the clarification of PostNord’s offer in various communication solutions. The growth areas within Strålfors (Data Management, Marketing Communication and Fulfillment) are also three key development areas for the Group in the borderland between digital and physical services.

5. Increased competitiveness
PostNord will improve the Group’s competitiveness by continuing to streamline operations to lower costs and increase the share of variable costs. Among other things, this involves focusing on improving integration of the Group’s production operations and efforts to generate additional synergies for the Group. Another prioritized area essential to competitiveness is ensuring stable IT operations and an IT platform that supports the needs of the business.

6. A winning culture
To maximize our capacity to implement our strategy, PostNord is focusing on strengthening the Group’s goal-oriented delivery culture. Sharp focus will also be maintained on sustainability within the Group to ensure that our operations are environmentally sound and offer workplace equality.

PostNord AB (publ) is required to disclose the above information under the provisions of the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on February 3, 2014.