Annual Report 2015

1. Operating segments

 

Group reporting segments consist of four operating segments: Postal Services, Parcel and Logistics Services, Itella Russia and OpusCapita. The Group's operating segments are based on the various services and products they offer, which is why they are managed as separate entities. The President and CEO is the chief operating decision maker, responsible for allocating resources to operating segments and the evaluation of the segments' results. The operating segments are also reporting segments.

                   

Other operations and unallocated items consist of operations, centralized Group functions supporting the business, and of investment properties. Unallocated items include tax and financial items, as well as corporate items.  

                   

In internal management reporting, the segments' performance assessment is based on the operating result and return on invested capital. Items allocated to the segments include non-current and current operating assets and liabilities, including non-interest bearing liabilities and provisions. Operating items are items the segment uses in its operations or that may be reasonably allocated to the segments. Capital expenditure consists of additions of tangible and intangible assets.

                   

The valuation and accrual principles used in the internal management reporting are IFRS-compliant. Inter-segment sales are conducted at market prices.  

                   

Postal Services

                 
                   

Postal Services is in charge of mail, press and marketing services. Mail Services is in charge of mail services offered to companies and consumers, stamps, mail redirection services, Netposti and international postal cooperation. Press Services provides newspaper, magazine and free distribution paper delivery services to business customers. Marketing Services provides addressed and unaddressed direct marketing services for companies as well as value-added services, such as register services, target groups, the Contact service, and printed products that can be ordered online.

                   

Parcel and Logistics Services

                 
                   

The Parcel and Logistics Services business group is in charge of comprehensive supply chain solutions, parcel and e-commerce services, transport services for companies, as well as warehousing and supplementary services.

                   

Itella Russia

                 
                   

Itella Russia offers comprehensive logistics services to both Russian and international companies. Itella is the market leader in warehousing in Russia. In addition, Itella offers road, air, sea and rail freight services, customs clearance services and logistics services for online retailers.

                   

OpusCapita

                 
                   

OpusCapita offers the full range of financial processes, from single processes to comprehensive outsourcing. The company develops Purchase-to-Pay and Order-to-Cash processes, in which software, subcontracting and services are combined in the market-leading delivery model. OpusCapita helps customers improve the efficiency and quality of their business operations so that they can focus on their core operations. OpusCapita has more than 11,000 corporate customers and software users in approximately 50 countries.

                   

2015

                 

EUR million

Postal Services

Parcel and Logistics Services

Itella

Russia

Opus-

Capita

Seg-

ments

total

Other

opera-

tions

and un-

allocated

 

Elimi-

nations

Group

total

External sales

689.9

596.4

118.8

245.2

1,650.3

0.0

   

1,650.3

Inter-segment sales

52.4

0.3

0.0

11.5

64.2

8.8

 

-73.0

 

Net sales

742.3

596.7

118.9

256.7

1,714.5

8.7

 

-73.0

1,650.3

                   

Operating result

57.3

-12.6

-25.0

13.3

33.1

22.8

   

55.9

                   

Financial income and expense

         

-12.5

   

-12.5

Profit/loss for the period before taxes

               

43.3

                   

Assets

262.1

288.5

126.1

172.7

849.4

456.9

 

-5.1

1,301.2

Non-current assets classified as held for sale

         

3.6

   

3.6

Liabilities

163.5

119.2

27.0

36.1

345.8

358.8

 

-5.1

699.5

Liabilities associated with non-current assets classified as held for sale

         

1.0

   

1.0

                   

Capital expenditure

0.4

6.9

2.5

9.6

19.3

41.3

   

60.6

Depreciation and amortization

0.0

8.2

9.2

7.1

24.5

56.0

   

80.5

Impairment losses

-

1.1

7.5

1.1

9.6

2.3

   

11.9

Personnel at period-end

69

1,478

2,646

2,178

6,371

15,227

*)

 

21,598

*) Other operations include both group functions and employees in operations.

                   
                   

2014

                 

EUR million

Postal Services

Parcel and Logistics Services

Itella

Russia

Opus-

Capita

Seg-

ments

total

Other

opera-

tions

and un-

allocated

 

Elimi-

nations

Group

total

External sales

717.7

721.8

171.7

246.8

1,858.0

0.7

   

1,858.7

Inter-segment sales

51.3

0.9

0.4

12.8

65.4

47.9

 

-113.3

 

Net sales

769.0

722.7

172.0

259.6

1,923.4

48.6

 

-113.3

1,858.7

                   

Operating result

66.1

-34.2

2.4

12.7

47.0

-41.2

   

5.8

                   

Financial income and expense

         

-10.4

   

-10.4

Profit/loss for the period before taxes

               

-4.6

                   

Assets

390.8

321.4

149.4

171.5

1,033.1

248.2

 

-4.7

1,276.6

Non-current assets classified as held for sale

         

14.7

   

14.7

Liabilities

165.4

143.7

22.2

42.1

373.4

348.7

 

-4.7

717.5

                   

Capital expenditure

0.2

10.9

2.6

5.8

19.5

38.0

   

57.5

Depreciation and amortization

0.0

9.1

13.8

6.6

29.5

56.5

   

86.0

Impairment losses

 

3.7

 

0.7

4.4

     

4.4

Personnel at period-end

106

1,902

2,920

2,292

7,220

16,069

   

23,289

                   

Geographical areas

                 
                   

Group operates in four geographical areas: Finland, Scandinavia, Russia and Other countries. Geographical area's net sales are determined by the geographical location of the Group's customer. Assets are presented according to their geographical location, and they include non-current assets except Group goodwill, deferred tax assets and financial instruments. Finland is the only individual country that generates a material part of the Group's net sales. Group’s customer base consists of a large number of customers over several market areas, therefore sales to any single customer does not make up a significant part of the Group’s net sales.

                   

2015

                 

EUR million

     

Finland

Scan-

dinavia

Russia

 

Other

count-

ries

Total

Net sales

     

1,265.3

140.4

118.5

 

126.1

1,650.3

Non-current assets

     

362.4

5.3

90.8

 

15.0

473.5

                   
                   

2014

                 

EUR million

     

Finland

Scan-

dinavia

Russia

 

Other

count-

ries

Total

Net sales

     

1,358.8

211.5

171.8

 

116.5

1,858.7

Non-current assets

     

456.8

19.3

114.9

 

16.4

607.4