Annual Report 2015

Posti in society

Posti’s most significant task in society is to ensure a smooth daily life for Finnish consumers and businesses. Each weekday, we visit the front door of some 2.8 million Finns, and we serve approximately 200,000 business customers per year.

Our well-functioning and efficient infrastructure enables us to provide reliable services for all of our customer groups in a socially responsible manner. We deal ethically, openly, and transparently with all of our stakeholders. We use various channels to provide our stakeholders with information and enable them to interact with us.

Posti is the largest logistics company in Finland. We have nearly 400,000 m² in warehousing capacity in Finland, more than 4,000 vehicles, and we drive over 100 million kilometers on Finnish roads every year. We offer the most comprehensive nationwide logistics network. The strategy in parcel services is to act as an enabler of online shopping for Finnish companies and consumers.

Our basic business is undergoing a transformation as digitization erodes letter and publication delivery volumes. Letter and publication delivery volumes are declining by some 10% annually, and it is estimated that letter delivery volumes will fall to half of their current level by the end of the decade. Nevertheless, providing premium mail services to everyone across the country is our main mission in Finland.

We ensure that the letter and parcel services that fall within the scope of universal service obligation are available to everyone. We are the only operator in Finland to provide five-day delivery services that cover the entire country. The universal service obligation covers the entire country, with the exception of the Åland Islands, and its fulfilment is supervised by the Finnish Communications Regulatory Authority.

We delivered items that fall within the scope of the universal service obligation on five weekdays to all households in accordance with the Finnish Postal Act. In areas that are difficult to reach, we deviated from the five-weekday obligation in the case of approximately 106 households, with the allowed maximum being 300. Posti handled 2,894 inquiries related to normal letters during the year. Altogether 1,749 inquiries were unresolved, and 178 items were declared as having been lost, while 967 lost items were found. Inquiries related to letter items represented 0.00033% of the total volume.


The Postal Museum has an important social mission

Owned by the Postal Museum Foundation, the Postal Museum is located in Museum Centre Vapriikki in Tampere. Established in 1926, the Postal Museum studies, records, and exhibits phenomena related to postal operations, mail communications, and data and goods traffic. It houses extensive collections of Posti’s artifacts and photographs as well as every stamp released in Finland and various philatelic special collections.

The Postal Museum offers a variety of interesting experiences. The experience-oriented Messengers exhibition illustrates the long history of postal operations and communications in Finland, from the 1600s to the present day. The museum also organizes exhibitions on special themes as well as a broad range of events for various target groups. In 2015, the theme exhibition On the Move! – To a New Home touched on a current topic of interest. The exhibition highlights the experiences of evacuees from Karelia as well as refugees who have migrated to Finland for humanitarian reasons.

The main mission of the Postal Museum Foundation is to maintain and develop the Postal Museum and to preserve and present the cultural heritage of Finnish postal operations. The Postal Museum Foundation is responsible for the archival, presentation, and information services related to Posti’s history under a service agreement.

 
 

Financial responsibility

Posti’s financial responsibility is based on transparency and profitability. We want to grow profitably, as only a financially sound company can implement its responsibilities in terms of society, personnel, the environment, and all stakeholder groups. We plan our finances from a long-term perspective, anticipating changes in the market, customer demands, and risk scenarios in Finland and abroad. Financial responsibility management is supported by our risk management policy, internal control principles, and corporate governance principles.

We are a state-owned company that operates on market terms, and our operations are entirely based on the revenue received from our customers. We implement our financial responsibility by reforming our business operations and improving our profitability in line with our strategy.

Our financial targets are that the company’s operating profit percentage exceeds 5%, return on invested capital is at least 10%, gearing does not exceed 35%, and more than 10% of the Group’s net sales comes from new business areas in 2018.

The financial impact of our operations is comparable to those of the banking and telecommunications sectors, as our services are used by hundreds of thousands of private and public sector operators every day, in addition to consumers.

 


Financial impact in accordance with the income statement

 

  

We support development and well-being throughout the country. Our Group’s operations span the entire country, and we are an important employer in Finland. In addition to providing employment, our operations generate well-being in and tax revenue for Finland. At the end of 2015, we had 16,874 employees in Finland.

 

 

The geographical distribution of our employees in Finland on December 31, 2015