Itella is a logistics and postal services company operating in 11 countries with annual net sales of EUR 1.947 billion. It has three main business groups: Itella Mail Communications provides postal and parcel delivery services; Itella Logistics offers international and domestic freight, express, and contract logistics services; and OpusCapita provides finance and accounting outsourcing. Itella aims to be the leading provider of postal, logistics and eCommerce services through profitable growth and high customer value.

1. Your first choice in postal,
logistics and eCommerce
services

2. Itella in Brief
Services
Net sales
•
•
•
Daily postal services
Financial administration
processes
Logistics solutions
•
EUR 1,947 million
Operations in 11 countries
Net sales by Business Group
30%
2
2013
Share of international net sales
31%
Mail Communications
57%
13%
•
OpusCapita
Personnel
Logistics
•
27,500 professionals
Itella General Presentation

3. Operations
in 11 countries
Finland
Russia
Sweden
Norway
Denmark
Estonia
Latvia
Lithuania
Poland
Germany
Slovakia
3
2013
Itella General Presentation

4. Three Business Groups
Itella Mail Communications
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•
•
•
•
•
•
Letter, publication, and direct mail delivery solutions
Domestic and international parcel services
Posti shops, postal agency shops, pickup outlets, and SmartPOST automatic
parcel terminals
Comprehensive solutions for online commerce
Electronic postal services, Netposti
Online tools for marketing communication
Analysis, target group, and register corrections services
Itella Logistics
•
•
•
•
International & domestic Air, Sea and Road freight
International & domestic Road express
Warehousing and other contract logistics
Integrated supply chain information management
OpusCapita
•
•
•
•
•
•
4
Outbound services
E-invoice operator
Finance and accounting services
Outsourcing
OpusCapita cash flow automation
Electronic order-supply chain
2013
Itella General Presentation

5. Almost a 400-year-old history
2011
2007
The parent company’s name is changed to Itella Corporation
2003
The early morning newspaper delivery business acquired from Sanoma Osakeyhtiö
2001
Internationalization begins with acquisitions in the Nordic countries
1998
Postal and telecom services are demerged into separate companies
1990
Posts and Telecommunications of Finland becomes a state-owned enterprise
1927
The Telegraph is merged with the Finnish Post to form Post and Telegraph
1811
A central postal administration is established for the postal services of autonomous Finland
1638
5
The new Postal Act takes effect in June
Governor-General Per Brahe establishes postal services in Finland
2013
Itella General Presentation

6. A Remarkable Role in Society
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•
•
•
6
Solid background: owned by the state
of Finland
Itella Posti Oy is the only company in
Finland with a universal service
obligation determined in the Postal Act
Itella is the only publisher of stamps in
Finland
The Post Museum presents, studies
and records Finnish cultural heritage
and the changing faces of Finnish
society through the history of postal
services
2013
Itella General Presentation

7. Along in the development of the
industry
Permanent membership in international
• PostEurope
• Universal Postal Union (UPU) and
• International Post Corporation (IPC)
Membership in Finland in
• the Finnish Service Sector Employers’
association PALTA (a member association
of the Confederation of Finnish Industries
EK)
• the Finnish Federation for
Communications and Teleinformatics
(FiCom), and
• Finnish Business & Society (FiBS)
7
2013
Itella General Presentation

8. Research and Development
Examples of development project
themes are new payment solutions,
automatic parcel terminals, Netposti, the
transport ordering system, and financial
administration service consepts.
Netposti
• Letterbox in the Internet
• A free service offered by Posti to all
Finns over 15 years
8
2013
Itella General Presentation

9. Itella’s Personnel December 31, 2012
Itella’s personnel by business
group
Itella’s personnel by gender
Women 41%, Men 59%
Number of Personnel
Itella Mail Communications
Itella Logistics
OpusCapita
Others
9
2013
17 800
7 400
2 200
400
27,500
Itella General Presentation

10. Personnel by Country
Breakdown of Employment Contracts
%
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•
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10
Finland
Russia
Poland
Sweden
Estonia
Norway
Denmark
Latvia
Lithuania
Germany
Slovakia
2013
21,820
3,700
560
400
390
250
220
220
120
100
20
100
80
60
40
20
0
7,674 part-time employees (28%)
20,142 full-time employees (72%)
3,048 fixed-term employees (11%)
24,768 permanent employees (89%)
Itella General Presentation

11. Corporate Strategy
11
2013
Itella General Presentation

12. Strategy
Satisfied customer
VISION 2020
MISSION
CUSTOMER
PROMISE
STRATEGIC
GOALS
VALUES
MEGATRENDS
12
2013
Your first choice in postal, logistics
and eCommerce services.
Our mission is to provide smooth flow of trade
and ease of everyday life.
Easy, fast, reliable and responsible.
High value solutions for customer
Market leader with profitable growth in Finland and in Russia
The engine of eCommerce
Step ahead in postal industry transformation
Best workplace
Succeeding with
the customer
Driving for
Taking
improvement and responsibility
innovation
Winning
together
Inevitable decline in mail business
eCommerce explosion, while consumer decides
Russia as a growth market
An era of slow growth in Europe
Itellan yleispresentaatio

13. Recent financials
13
2013
Itella General Presentation

14. Financial targets
Operating profit to exceed 5%
Return on invested capital at
least 10%
Gearing not to exceed 35%
Annual net sales at least in par with
market growth
Net sales in Russia to double by 2020
14
2013
Itella General Presentation

15. Key financial figures
January-September
M€
2
3
1-9/2012
Net sales
1,448.0
1,404.1
Net sales declined in Mail Communications,
but increased in Logistics’ road freight and in
Russia.
EBITDA
79.7
94.8
Sales margin declined in Mail
Communications and in Logistics.
Operating result
(non-IFRS)*
24.1
(1.7%)
40.4
(2.9%)
Operating result decreased in Mail
Communications and during Q1-Q2 in
Logistics. Operating result improved in
Information.
Operating result
1
1-9/2013
-2.4
(-0.2%)
29.9
(2.1%)
Operating result includes non-recurring items
EUR 26.5 million. Operating result decreased
in Mail Communications and in Logistics. The
operating result improved in Information.
4
15
2013
*) non-IFRS = excluding non-recurring items
Itella General Presentation

16. Key financial figures
January-September
M€
1-9/2013
1-9/2012
Consolidated cash flow
from operating activities
9.8
55.8
Cash flow from operating activities declined
because of weaker operating result and the
growth in working capital.
2
Return on invested
capital (ROIC), 12
months
1.1
5.8
Return on invested capital is not on a targeted
level.
3
Gearing
30.3
22.3
Because of seasonal fluctuation gearing is
usually on the highest level in the end of Q3.
1
16
2013
*) non-IFRS = excluding non-recurring items
Itella General Presentation

17. Net sales grew in July-September
+2.6%
M€
445.6
457.0
60.3
1.7%
188.1
11.7%
264.4
-2.8%
7-9 2012
Itella Mail Communications
61.3
210.1
257.0
7-9 2013
Itella Logistics
Itella Information
Target: At least in par with market growth
17
2013
Itella General Presentation

18. Net sales by georaphical areas in
July-September 2013
5%
M€
7-9/2013
7-9/2012
Finland
319.5
295.0
Scandinavia
Scandinavia
55.6
64.9
Russia and the
Baltic countries
Russia and the
Baltic countries
59.0
62.3
Other countries
Other countries
22.9
23.3
Group
457.0
445.6
Finland
12 %
13 %
70 %
* The growth in Q3 net sales in Russia was
+11% in local currency.
18
2013
Itella General Presentation

19. Operating result* declined
-33.1%
M€
11.9
5.9
22.7%
8.0
7.2
-80.0%
12.5
2.5
0.2
-2.9
7-9/2013
7-9/2012
Itella Mail Communications
19
30.10.2013
Itella Logistics
* non-IFRS = excluding non-recurring items
Itella Information
Itella Oyj

20. Itella
Mail Communications
20
2013
Itella General Presentation

21. Itella Mail Communications
Key figures
Countries of operation
Net sales: € 1,167.6 million
•
Finland
Number of staff: 17,844
•
Estonia
Deliveries: nearly 3 billion a year
•
Russia
Vision and mission
Services
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21
Letter, publication, and direct mail delivery
solutions
Domestic and international parcel services
Posti shops, postal agency shops, pickup
outlets, and SmartPOST automatic parcel
terminals
Comprehensive solutions for online
commerce
Electronic postla services, Netposti
Online tools for marketing communication
Analysis, target group, and register
corrections services
2013
Vision
The market’s leading multi-channel
forwarder of goods and information, as
required by the customer’s recipients
Mission
The multi-channel distribution of society’s
goods and information
Itella General Presentation

22. Itella Mail Communications
Itella Mail Communications produces and develops
multi-channel distribution channel services for
companies and communities. By doing this
customers can reach their own customers
successfully.
•
•
•
22
Distribution services of the letters, packages and
newspapers in Finland. Through partners
worldwide.
High-quality mail services under the Posti brand
for consumers.
Direct customers are mainly companies and
communities (about 95%).
2013
Itella General Presentation

23. Service development to corporate
customers
• Letter and newspaper services develop when
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•
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23
customers' communication needs change.
Service selection becomes more simple.
New service wholenesses for small and medium-sized
companies also in the net.
An electric tool which can be used to improve the
addressing of the shipment lot and to facilitate a
preliminary work which precedes mailing.
New versatile alternatives for receiving the shipments
which arrive at the companies.
Solutions for targeted marketing in Finland and in
Moscow in Russia.
Climate friendly Itella Green: a basic property of the
letters and papers without the surcharge.
2013
Itella General Presentation

24. Itella Logistics
24
2013
Itella General Presentation

25. Itella Logistics in Brief
Key figures
Turnover: € 781.5 million
Number of staff: 7,391
Number of service warehouses: 45
Floor area of warehouses: Nearly one million square
Countries of operation
•
Finland
•
Estonia
•
Sweden
•
Latvia
•
Norway
•
Lithuania
•
Denmark
•
Russia
meters
Number of road, air and sea shipments: 780,000
Vision and mission
Services
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•
25
Global road, air, and sea freight
Domestic freight
Warehousing services
Logistics information system
2013
Vision
Regional top performer in service logistics
Mission
We offer logistics to create customer, personnel
and shareholder value
Itella General Presentation

26. Local Intimacy, Global Reach
Finland
Helsinki
Lahti
Tampere
Turku
Oulu
Kuopio
26
2013
Sweden
Stockholm
Jönköping
Borås
Norway
Oslo
Bergen
Stavanger
Kristiansand
Trondheim
Denmark
Hvidovre
Kolding
Risskov
Estonia
Tallinn
Latvia
Riga
Lithuania
Vilnius
Klaipeda
Kaunas
Russia
St. Petersburg
Moscow
Rostov-on-Don
Samara
Ekaterinburg
Novosibirsk
Vladivostok
Itella General Presentation

27. Partnering with Itella in children's
wear logistics
”
•
Working with Itella is smooth and easy;
the company is a true expert on
operating in Russia. The right products are in
the right place at the right time. This is the
cornerstone for this type of industry, enabling
us to efficiently expand our brand in Russia.
• Katariina Kaisla
Logistics Manager, Reima
27
2013
Itella General Presentation

28. OpusCapita
28
2013
Itella General Presentation

29. OpusCapita
Key figures
Countries of operation
Net sales: € 270.1 million
•
Finland, Sweden, Norway, Denmark,
Number of staff: 2,168
Germany, Poland, Estonia, Latvia,
Number of customers: 10,000
Lithuania and Slovakia
Number of incoming invoices: over
30 million annually
•
Presence almost everywhere in
Europe and North America through
the partnership network
Services
Vision and mission
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•
29
2013
Outbound services
E-invoice operator
Finance and accounting services
Outsourcing
OpusCapita cash flow automation
Electronic order-supply chain
Vision
# 1 value provider in financial processes
in Europe
Mission
Optimization of financial transactional
processes
Itella General Presentation

30. OpusCapita – Part of Itella Group
Pan European Financial Process Innovation Company
• Over 300 outsourced Finance
and Accounting processes
• Over 30 million incoming
invoices processed annually
• Approximately 140 million
electronic transactions delivered
yearly
•
1 800 million paper
documents processed per year
•
1 300 million documents
electronically archived annually
30
2013
Itella General Presentation

31. OpusCapita’s Global Success
Net sales (Meur)
•
Operates in 10
countries in Europe
300
247
250
•
Roots in information
logistics
•
Strong growth by
focusing on
financial process
innovation
200
198
247
2008
2009
260
274
270
201
150
100
50
•
31
Over 20 years of
experience with
10,000 customers
2013
0
2006
2007
2010
2011
2012
Itella General Presentation

32. Corporate Responsibility
32
2013
Itella General Presentation

33. Corporate Responsibility at Itella
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33
Responsibility has been the cornerstone of Itella’s operations for nearly
400 years
– Corporate responsibility is part of Itella’s strategy and based on our
values
– Our Corporate Responsibility Principles define the essential
commitments and sectors of Itella’s corporate responsibility. The
principles are concretized in the Employee Code of Conduct
We are committed to the UN Global Compact principles
– Fundamental rights at work, the eradication of corruption,
environmental protection, human rights
We measure and prepare reports on corporate responsibility
according to the GRI guidelines (GRI = Global Reporting Initiative) and
we also follow the reporting model set for the state-owned companies
Corporate responsibility comprises four sectors:
finance, environment, people, society
2013
Itella General Presentation

34. Itella is a reliable and open bearer
of responsibility
FINANCIAL RESPONSIBILITY
SOCIAL RESPONSIBILITY
- Reliability
- Nationwide services in Finland
- Ethical principles
- Long term view
- Proactiveness
- Innovativeness
à Profitable growth
à Functional infrastructure
ENVIRONMENTAL
RESPONSIBILITY
PEOPLE RESPONSIBILITY
- Well-being at work
- Good leadership
- Diverse workplace
- Energy-efficiency
- Green products
- Renewable energy
à Environmental efficiency
à The best empoyer in its sector
34
2013
Itella General Presentation

35. Examples of Itella’s corporate
responsibility
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35
2013
Because of Itella’s real estates’ energy saving program electricity
consumption reduced by 7% and heat consumption by 11% in 2011
in Finland (saving of € 1.1 MEUR).
In the fall of 2011, Itella’s natural gas vehicles switched to a
domestic brand of renewable biogas, with exceptionally low carbon
dioxide and other greenhouse gas emissions as well as low
particulate emissions in comparison to conventional fuels.
The logistics center under construction in Pennala pays attention to
environmental issues comprehensively.
Already 70% of Itella’s staff works in an office that has ISO 14001
environmental certificate.
In 2011 Itella became the first postal company in the world to offer
entirely carbon-neutral delivery services.
Itella received The Environmental Achievement of the Year award
at the international postal industry fair in September 2011.
Itella was granted the HR Deed of the Year competition for 2011
with its project aiming to provide more well-being through
interactive and participatory leadership.
Itella General Presentation

36. Smart Move
36
2013
Itella General Presentation