Annual and Sustainability Report 2020 Posten Norge
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At the forefront of the future Annual and sustainability report 2020 Posten1 Norge Contents In this report you can read about how we have created results and opportunities for people, the environment and society – through an unprecedented 2020. Key figures 2020 2019 2018 2017 2016 2015 About us Operating revenues NOK million 23 996 24 212 23 894 24 678 24 772 25 074 Message from the CEO ................................................................. 6 About Posten Norge ...................................................................... 8 Adjusted earnings (EBIT) NOK million 1 423 808 531 703 645 686 Group structure .............................................................................10 Group Management .......................................................................11 percentage 5.9% 3.3% 2.2% 2.8% 2.6% 2.7% 01 Key events in 2020 ........................................................................12 Adjusted operating margin The Board of Posten Norge .........................................................14 Operating profit/loss (EBIT) NOK million 1 485 162 415 692 178 239 Board of Directors' Report ..........................................................15 Our development .........................................................................22 Profit before tax NOK million 1 344 21 366 621 230 151 Our strategy for 2020-2023 ......................................................24 Return on invested capital (ROIC) 1) in % 14.1% 7.4% 7.3% 9.8% 9.0% 9.9% Cash flow from operating activities 2 607 2 143 598 592 945 1 213 Sustainability Equity 2 7 367 6 363 6 481 6 375 5 912 5 926 Results 2020 .................................................................................28 The greenest logistics provider.................................................30 Total assets 2 19 643 19 867 16 071 16 962 15 299 16 097 A responsible social player and employer ...............................40 02 An efficient cost structure .........................................................48 Return on equity after tax (ROE), in % 16.4% 0.2% 3.9% 6.3% 0.7% -1.0% Equity to assets ratio in % 37.5% 32.0% 40.3% 37.6% 38.6% 36.8% Financials Debt ratio 0.1 0.6 0.0 0.0 0.1 0.0 Corporate Governance ...............................................................56 Sickness absencein % 6.0% 5.9% 6.0% 5.9% 6.0% 6.1% Financial statements and notes for Posten Norge Group......62 Financial statements and notes for Posten Norge AS .......... 131 H2 injuries 3 rate 7.0 7.8 8.7 6.5 7.7 9.6 03 Alternative performance measures (APM) .............................177 Statement of the Board of Directors .......................................183 Registered near-accidents 26 122 33 273 33 126 38 552 42 879 41 756 Independent auditor's report ...................................................184 COࣗ-emissions (grammes) per NOK earned 12.2 13.9 14.4 14.6 15.6 18.8 Renewable energy sources in vehicles 4 1 577 1 451 1 242 1 593 1 904 1 413 Parcels quantity in thousands 5 77 838 59 945 53 649 50 586 51 198 48 194 Letters quantity addressed in thousands 438 148 542 793 602 764 685 454 763 103 857 743 In line with IFRS 16 Leases, the accounts figures for 2018 and previous years have not been restated 2 1 Calculated based on adjusted operating profit. 3 The rate of work-related injuries per million working hours. Return to table of contents 3 2 The figures have been taken from published financial statements. The figures 4 See page 32 have not been restated in relation to changes to policies or other changes 5 Parcels to the private and business market in the Nordic region. that have been made. 01 About us Message from the CEO ................................................. 6 About Posten Norge ..................................................... 8 Group structure ...........................................................10 Group Management ......................................................11 Key events in 2020 .......................................................12 The Board of Posten Norge .........................................14 Board of Directors' Report .........................................15 Our development ........................................................22 Our strategy for 2020-2023 ......................................24 We shall be our customers’ first choice by providing the best experience, delivered by the most committed and competent employees. 4 01 About us | Message from the CEO Message from the CEO | About us 01 Extraordinary efforts in an First and foremost, I am proud of how we have extraordinary year managed to ensure infection control while maintaining operations and high 2020 has been a year characterised by the pandemic and the closure of society. Thanks to the fantastic efforts of the entire delivery quality. organisation, we have handled an extraordinary year in a good and proactive way for our customers, society and ourselves. Our contingency plans were in A record adjusted operating profit of distribution every other day. The We have launched a new strategy friendly vehicles. Our goal for 2020 points who went to “war” against place when Norway was shut down NOK 1 423 million has been achieved new Nordic parcel network that was leading up to 2023 and a new, ambi- was for 24% of vehicles in the car an invisible opponent, with face on 12 March 2020. This meant that by an organisation running in high established has given customers tious target vision. The strategy sets fleet to be powered by renewable masks, antibac and Plexiglas as their we could mobilise quickly, and gear. Mail and goods deliveries are improved service and flexibility and a clear direction for our focus in the energy. I am very pleased that we weapons. The terminal workers who that our customers, partners and important social functions, and now consists of approximately coming period. In short, we will con- exceeded that goal, achieving 26%. handled record volumes week after employees were informed about the demand for our services has 7 000 distribution points in the tinue to develop new, sustainable and week, those who dedicated them- what to expect from us and the increased sharply in the last year. Nordic region. We have sold the innovative services that make us the Alliances and partnerships in selves to launching new services, all guidelines in force at an early stage. E-commerce took off in earnest and transport company Bring Freight customer's first choice, and we will sustainability are crucial in achieving those who have been working from in the Nordic region it has led to a Forwarding in Sweden. We have also adapt our operations and network to the big picture goals. Among other home for a whole year, with all the I would say that so far we have 48% increase in parcel deliveries. chosen to cease operations in the the market. This means that we will things, it is important to make the issues this involves. We are part of handled the crisis in a good and pro- Slovak company Bring Trucking and deliver the best customer experience necessary framework conditions the backbone of the infrastructure in active way. First and foremost, I am We have introduced new innovations, instead purchase transport capacity and the industry's most attractive visible. We have done this in dialogue the Nordic region, which is a region proud of how we have managed to including the launch of unattended in the international market. service portfolio, we will focus even with stakeholders in individual cases with many nooks and crannies, from ensure infection control while main- parcel boxes, the AMOI platform more on technology and innovation, such as biofuel taxes, and in a larger north to south and east to west. taining operations and high delivery service and Urban Home Delivery While we have moved at a breakneck and through responsible value context where several players in the I think this creates internal pride quality. The internal mobilisation with green, fast deliveries in major pace in terms of both development creation we will be the green choice. business community work together. and makes us want to perform meant that we achieved a great deal cities. We have also invested in new and delivery speed, customers are We are a member of Nordic CEOs even better. in a short time, including contact- ventures. At the beginning of 2021, more satisfied than ever. It makes For us, sustainability is about and Skift. The latter consists of the less signing for collection and home the Group was several years ahead me genuinely happy. We have turning today's challenges into most ambitious companies in Norway I would like to extend a big thank delivery, and delivering groceries of previous volume forecasts strengthened our market positions tomorrow’s opportunities - for the with regard to the climate, and I you to all our customers, partners to the door all over the country for the logistics segment. in the Nordic region, and Posten's world and for us. Every day, close have the pleasure of sitting on the and subcontractors who have in collaboration with Coop. By reputation is among the top 10 in to 13 000 employees contribute to board. We have also been present trusted in us during this unprece- adapting to new needs quickly and Growth in e-commerce is expected Norway. The annual organisational creating long-term value for the with active participation during the dented year. And an equally big smoothly, we have demonstrated to continue and the Group is survey indicated that employees are environment, people and our own Zero Conference. thank you