The leading communication and logistic business in the Nordics PostNord in brief

SEK 37.7 bn SEK 129 m Net sales Adjusted operating income, EBIT

7,000 171 million parcels Distribution points in the Nordic region

30,000 3.3 billion letters Employees and other mail items PostNord Danmark at a glance

• The postal service in was founded in 1624 • Since 2009, has been part of PostNord – a joint company owned by and Denmark • The ownership is divided between Denmark (40 %) and Sweden (60 %) • PostNord Danmark is currently undergoing the biggest transformation in its history -.

In 2018, PostNord Danmark delivered 265 mill. letters and around 50 mill. parcels to 2.7 mill. households divided on 251 delivery days.

3 Denmark got the yellow jersey regarding digitalization of letters At the highest (year 2000) PostNord Denmark handled 1.5 bill. letters a year

110

100

90

80 Letter volume 70 Index 100 = 2001 volumes Group 60 Le Groupe Posti 50 PostNord Sverige 40 PostNL 30 -80% 20 PostNord Danmark

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0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

4 The dramatic change happened on 1 November 2014 as a new national digital strategy was set into force

• From this day all communication with the state, the municipality and other public authorities had to be electronic.

• From this date the decline in the letter volume has been more than 12 % - and in some years more than 20 %.

• And if you look at volumes of next day delivery of mail, since 2000 the decrease is 97 % !

5 The effect on mail delivery is significant - an example

3850 inhabitants in the town Stege Actual mail delivery in Stege on a specific day (14. June) in 2018

= 3850 potential mail recipients 293 units delivered to 207 in 2.952 house holds unique adresses

The remaining letters are important letters!

6 Delivered letters per household in Sweden

2,50 Number of letters delivered by PostNord per household in Sweden, actual and prognosticated. 2,00 1,79 1,69 1,63 1,56 1,50 1,44 1,35 1,24 1,11 1,00 0,97 0,86 0,75 0,63 0,50 0,52

0,00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Actual data Business plan Prognosis New market definition

• All major postal operators in the Nordic countries face decreasing letter volumes (incumbants and non-incumbants).

• Digitization is our main competitor

• Time to reconsider old truths – when it comes to messaging, we have not been SMP for a long time

2019-05-06 8 We live in an ever changing world

• Digitalization comes with a new set of rules • New and agile competitors • Disruption and new business models

Change in customer behaviour We are communicating in different channels

Source: Nordic Channel Compass, 2018 Omnichannel facilitates the transition from physical to digital communication Customization of communication according to customer needs

1. WE RECEIVE 2. WE HANDLE 3. WE DELIVER

We receive data from our We handle, process and We deliver our customers in different optimize the submitted customers' customer formats and from different data to the output communications in all types of IT systems (e.g. channel that the possible channels, CRM, ERP and invoicing customer's customers physical as well as digital systems) prefer