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Posten .Rsrapport 2002 ENG yesterday today annual report NORWAY POST 2002 tomorrow Contents CEO report . 4-7 Consumer Division . 26-27 Business concept, vision and goals . 7 ErgoGroup . 28-29 Organisation . 8-9 Distribution Network Division . 30-31 Board of Directors’ report . 10-17 Market overview . 32-35 Key figures for the Group . 18 Working for the community . 36-37 Income statement . 19 Environmental report . 38-39 Balance sheet . 20 Notes to the accounts . 40-56 Cash flow statement . 21 Auditor’s report . 57 Communication Division . 22-23 Highlights . 58-59 Logistics Division . 24-25 contentsNORWAY POST ANNUAL REPORT - PAGE 3 CEO report Long-term value creation is Norway Post’s key challenge in a rapidly changing and highly competitive European postal market that is being increasingly affected by globalisation, technology and liberalisation. Sustainable value creation Creating long-term value for its owner, the of the logistics and communications market, Norwegian state, is Norway Post’s number one the replacement of traditional postal services priority. In addition to this the company must by electronic products and services, and the meet the social objective stipulated in its licen- liberalisation of the European postal market. ce. These three key drivers will generate strong Other main strategy elements are: competitive pressures and a rapidly changing • Norway Post will be a logistics and commu- business environment in which companies nications enterprise with a rigid structure and content will strug- • The company will be streamlined to increase gle, while enterprises that are successful in its competitiveness adapting their organisations, services and • The quality of the company’s services will be products will see new opportunities. improved • New sources of income will be identified, The EU has decided that the postal market particularly at the interface between physical should be further liberated from 2006, with and electronic services. full liberalisation from 2009. Norway Post In 2002, some aspects of the strategy were believes the process will be faster in Norway, further elaborated: and the company’s own objective is to be • Norway Post aims to streamline its organisa- ready for full competition from 2007. tion to ensure cost-efficient and competitive Some 85 per cent of Norway Post’s revenues operations. come from the corporate market. The compa- «Our goal is to be ready • Norway Post’s IT initiatives through ny’s financial success, therefore, depends on its ErgoGroup are important because they allow performance in this market segment. Norway for full competition integration of electronic services with physical Post’s reputation, however, is largely formed services, in order to respond to the increasing by the private market’s opinion of its services. from 2007» demand in this field. This paradox obviously influences Norway • Norway Post aims to become a market leader Post’s marketing, which is largely directed in its core business in Norway. The company towards the private market, but it also affects will also seek to assume leading positions in the development of the company’s products niche activities in other Nordic countries, and services, which are directed towards the while its engagement in activities outside the corporate market. Nordic region will be through alliances. Naturally, the various elements of Norway The three main factors affecting the deve- Post’s strategy are met with different lopment of Norway Post are the globalisation degrees of attention when implemented. NORWAY POST ANNUAL REPORT - PAGE 5 CEO report Norway Post's vision The world’s most future-oriented postal enterprise The vision expresses Norway Post´s long term ambition. Our vision represents a picture of how we want Norway Post to be perceived. 1998, and 34.8 per cent of its shares are now The vision must create a common understanding of Norway Post’s held by the Dutch state. Deutsche Post was choice of direction, at the same time providing an ideal for all of us listed in 2000, and the German state now who work with Norway Post and particularly something to strive for. «World» expresses the idea that we shall be a world leader in our owns 68 per cent of the shares in this compa- sector. No other postal company should be better in its market than ny.In the future, the number of listed compa- Norway Post is in Norway. We shall draw inspiration from the best nies will clearly increase, while government performers in our industry, regardless of where in the world they are ownership in European postal companies will active. decline. The interpretation of «most» is that we shall be best. We shall be the ones winning profitable competitions in the market frequently. «Future-oriented» means that we want to be at the front edge of In July 2002, Norway Post became a limi- development at all times. We offer solutions adapted to ted company, but is not listed on the stock present and future requirements, where the customer’s needs are exchange. The Norwegian Ministry of central. We operate in a dynamic industry and are experiencing a market that is undergoing rapid development. The vision underlines Transport and Communications commissions the fact that change and development will be ongoing. external analysts to carry out regular valuati- The concept of a «postal company» is not static. We ourselves decide ons of the company. In 2000, its estimated what is to be incorporated into the concept «post» in the future. At value was NOK 4.8 billion, compared with the same time, we shall build on our history and the trust we have NOK 6.3 billion in 2002 and NOK 5.5 billion gained in the market. Norway Post is a concept charged with positive values. We must make good use of this. «Increased accessibility is an important trend. in 2003. In other words, the value of Norway Post increased by 13 per cent from 2000 to As a supplier, Norway Post must take the 2003, during which period the main index on the Oslo Stock Exchange fell by 47 per cent. In Business concept consequences of this» Norway Post develops and delivers integrated, value-adding 2002, the value of Norway Post decreased by communications and logistics solutions –through physical and 13 per cent, compared with a drop in the electronic networks to domestic and international customers. The change from company-operated in Shops will grow and the opening hours of stock exchange index of 30 per cent. Thus the Norway Post shall develop holistic, value-adding communications and post offices to a combination of compa- company-operated outlets will be adapted to development in the value of Norway Post logistics solutions. This means that we not only transport items from ny-operated outlets and Post in Shops is the the demand for increased accessibility to must be said to be relatively satisfactory com- Ato B, but also offer total value adding solutions based on the custo- mers’ needs. event that has attracted most attention. Norway Post’s products and services. pared with the development of other compa- We develop solutions, which are supplied through physical and elec- The company now has a sales network nies. Norway Post’s management and employ- tronic networks. This means that we shall continue to transport consisting of 1146 Post in Shops and 304 Norway Post is continuously exploring ees will do their utmost to ensure that this physical consignments, but will also offer electronic services, such as company-operated outlets/Post Offices. The new areas of business, which has resulted in a will also be the case in the future. payment services, secure ID and secure e-mail. These can be supplied by our own production system and through alliance partners. experience to date has been positive, with slight increase in the number of employees in Our network serves both private individuals and companies. The main improved customer satisfaction. Especially its subsidiaries and a marked growth in turn- focus is still on customers in Norway, but the network offered to Post in Shop scores high on accessibility and over per employee both in the parent compa- our customers must cover the whole world. opening hours. No doubt, accessibility is ny and in the Norway Post Group. becoming increasingly important in today’s One of the new opportunities for growth Kaare Frydenberg Norway Post aims to society, and being a products and services resulting from the liberalisation of the postal Chief Executive Officer Principal goals increase the integration of provider, Norway Post must ensure high market in Europe is the acquisition of Using our business concept, vision, values and future challenges as a basis, Norway Post has defined the following principal goals for its traditional postal services accessibility by focusing on technology, CityMail in Sweden. The company distributes extended opening hours and flexible customer addressed letters in major Swedish towns and business operations: with electronic solutions. «The development of the agreements. is active in a niche that has all the right condi- Satisfied customers Today, IT represents 12 per tions for profitability. The acquisition also value of Norway Post must These will be measured through the development of customer satis- Another element of Norway Post’s on- means that Norway Post will be able to offer faction, which over time will reflect our customers’ overall perception cent of the group’s turnover. going restructuring process that has attracted high-quality services to customers operating of Norway Post. In a few years, more than half be said to be relatively omorrow considerable attention, is the substantial work- in both the Swedish and Norwegian markets. Strong market position t of it will come from IT and force reductions implemented over the last satisfactory compared Our market position will be measured as market share, both in exis- years.
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