Annual and Sustainability Report 2015
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Annual and Sustainability Report 2015 Contents 1 PostNord in brief Reporting according to GRI G4 2 President and Group CEO statement PostNord is reporting on its sustainability work for 2015 according to the Global Reporting Initiative’s 4 Market (GRI) G4 Guidelines. The GRI Index on pages 90–91 8 Strategy contains an overview of the aspects and indicators 14 Our offering that form part of PostNord’s sustainability reporting. It also contains information on the scope and bounda- Our operations ries of the reporting. The sustainability report for the 16 PostNord Sweden 2014 financial year was published in March 2015. It was also drawn up according to the GRI Guidelines, G4. 18 PostNord Denmark 20 PostNord Norway 21 PostNord Finland Auditing of the report The Board of Directors and the President & Group 22 PostNord Strålfors CEO of PostNord AB (publ.), corporate identity 24 Financial development number 556771-2640, hereby present their Annual and Sustainability Report for the 2015 financial year. 26 PostNord’s sustainability work The Board of Directors’ report comprises pages 4–13, 30 Employees pages 16–25, the section on environmentally licensed operations on page 34, and pages 38–49, and has 33 Environment been audited as stated in the Auditor’s Report on 36 Suppliers page 85. The Sustainability Report comprises pages 37 Compliance 26–37 and pages 86–91 and has been reviewed according to the Assurance Report on page 92. 38 Risk 40 Corporate Governance Report Contact details for PostNord’s Group office 46 Board of Directors PostNord AB 48 Group Executive Team SE-105 00 Stockholm Visiting address: Terminalvägen 24, Solna Financial statements Tel +46 10 436 00 00 51 Consolidated financial statements www.postnord.com 55 Notes to the consolidated financial statements 79 Parent Company financial statements 81 Notes to the Parent Company financial statements Contacts Per Mossberg, Chief Communications Officer 84 The Board of Directors’ and President & Group CEO’s certification Tel +46 10 436 39 15 85 Auditor’s Report Gunilla Berg, CFO 86 Measurement and calculation methods Tel +46 10 436 28 10 88 GRI Index 92 Assurance Report 93 Five-year review Many PostNord employees have demonstrated a strong In 2015, PostNord issued the first joint charity stamp commitment to helping displaced people. In early in Sweden and Denmark. The fact that the money September, PostNord decided to support individual raised will go to the World Wildlife Fund WWF is initiatives via a collaboration with UNHCR. In addition consistent with PostNord’s view on sustainability and to making a direct donation of SEK 300,000 to UNHCR, the Company’s work to minimize the environmental PostNord also assisted with the transportation of impact of its operations. Sales of the stamp, launched various kinds of essential items. These actions were in May 2015, had generated some SEK 1 million for carried out jointly with individual customers. PostNord’s WWF by December 31, 2015. employees also made their own donations in the form of money, clothing or other essential items. Every care has been taken in the translation of this Annual and Sustainability Report. In the event of discrepancies, the Swedish original will supersede the English translation. PostNord in brief Revenue per Operating margin, country EBIT We deliver! SEKm % 50,000 10 40,000 8 30,000 6 PostNord is the leading supplier of communication 20,000 4 and logistics solutions to, from and within the 10,000 2 Nordic region. We ensure postal service to house- 0 0 1514131211 holds and businesses in Sweden and Denmark. Sweden Finland With our expertise and strong distribution Denmark Rest of the world Norway Operating margin, EBIT network, we develop new solutions for the communication, e-commerce, distribution and logistics of tomorrow in the Nordic region. Average number of employees per country In 2015, the Group had around 35,000 50,000 employees and sales of approximately SEK 40 40,000 billion. PostNord is 40% owned by the Danish State 30,000 and 60% by the Swedish State. Votes are alloc ated 20,000 50/50 between the shareholders. The parent 10,000 company, PostNord AB, is a Swedish public limited 0 company headquartered in Solna, Sweden. 1514131211 Sweden Finland Denmark Rest of the world Norway Total mail and parcel volumes Millions of mail items Millions of parcels1) 3,000 150 2,000 100 5.2 billion 1,000 50 letters and other mail items were delivered 0 0 1514131211 by PostNord in 2015. Total mail volumes, Sweden Total mail volumes, Denmark Total parcel volumes approximately 130 Carbon dioxide emissions Thousands of metric tonnes million 500 parcels reached their intended 400 1) recipients on time. 300 200 approximately 6,000 100 distribution points in the Nordic countries offer 0 1514131211 reliable service and convenient opening hours. 1) Eliminated for intra-Group volumes between countries. PostNord Annual and Sustainability Report 2015 1 President and Group CEO statement Right priorities strengthening PostNord’s position The pace of digitalization is accelerating. To PostNord, this means rising parcel volumes thanks to robust growth in e-commerce in all Nordic markets, but also lower letter volumes, above all in Denmark. Therefore, we are working on two fronts. We are adapting our steadily shrinking letter operation in order to align the organization not only with the prevailing market situation but also with the one in which we will be operating in going forward. At the same time, we are creating the right conditions and a sustainable business model to be a long-term winner on the Nordic logistics market. Yet another exciting year has come to a close. We are in Meanwhile, our operating environment is becoming the midst of a paradigm shift as the entire industry is increasingly challenging. This means we have to maintain adapting to lower mail volumes and growing e-com- a high tempo in everything we do. We are constantly driv- merce. This transition is essential for PostNord to be a ing the development of new and improved Nordic end-to- modern and competitive logistics and communications end offerings of mail and logistics services to corporate company for the future. We are proud of our ability to per- and private customers. One important stage in this pro- form our service obligations by delivering a high quality cess is the launch of a joint brand, which was imple- mail service throughout Sweden and Denmark. We are mented rapidly during the year, above all in Sweden, now offering certain mail services in Norway as well, Norway and Finland. The roll-out of PostNord’s brand is where the former postal monopoly is now being dis- now being accelerated in Denmark in 2016. mantled. Further adaptation of capacity, product develop- At the end of the year, the decision was taken to inte- ment and cost efficiency measures, along with changes grate Strålfors more closely with the rest of the Group to the system of postal regulations are necessary to with regard to service development and product owner- ensure long-term profitability and competitiveness. ship of physical and digital communication services. Our focus is on implementing our strategic priorities. Together, these operations make up the new business And I can say that we’re on the right track. area Communication Services. We are also moving eCommerce to the Logistics business area now called e-Commerce & Logistics. Strong e-commerce growth boosting logistics volumes E-commerce is continuing to grow robustly and increased by 14% to just over SEK 160 billion in the Nordic region in 2015. The most popular online purchases are clothes, books, toys and home electronics. Deliveries tailored to customer requirements make it convenient for consumers to shop online. From an already leading posi- tion, our logistics business is continuing to grow steadily, despite tough competition. About a third of the new agreement s that we sign are in the e-commerce segment. Parcel volumes grew by 10% in 2015, of which e-com- merce-related B2C volumes rose 15%. During the year, we expanded our strategic coopera- tion with the international network DPDgroup, which is the second largest service provider in the European par- cel market. This gives PostNord access to service points at over 20,000 locations in Europe, as well as a solid inter- national foothold. 2015 also saw the acquisition of the Finnish company Uudenmaan Pikakuljetus Oy (UPK). The deal reinforces PostNord Finland’s position in logistics solutions on the Finnish market. Accelerating digitization demands regulatory changes Mail volumes decreased by 8% of which 6% in Sweden and 16% in Denmark. Since the turn of the millennium, 53% of priority mail volumes in Sweden have moved over to digital communication. In Denmark, the volume of 2 PostNord Annual and Sustainability Report 2015 President and Group CEO statement first-class mail has fallen 82%. We see this trend accelerat- Focus on right priorities producing results ing. It is therefore vital that changes to the regulations that Our strategy, which aims to lay the groundwork for impact our business are implemented as quickly as pos- achieving our goals, is based on a number of priorities. sible. Regulations must be adapted to customers’ con- These aim to enforce PostNord’s position on the market stantly changing needs and expectations. This is vital if we and respond to customers’ rising demands for service. are to maintain a universal postal service in the long term Our ambition is that our customers want, and are able, to under reasonable economic conditions. We therefore wel- grow with us by utilizing our complete portfolio of com- come the Swedish government’s decision in 2015 to munications and logistics products and services.