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Finland Post’s Financial Statements for 2006: Growth through International Logistics

16.02.2007

Key Figures and Ratios

2006

2005

Change

Net sales, EUR million

1,550.6

1,348.2

+15

Operating profit, EUR million

89.0

97.8 *)

-9

Operating margin, %

5.7

7.3

 

Comparable operating profit, EUR million

89.0

86.2

+3

Profit before tax, EUR million

94.4

103.7

-9

Return on equity, %

10.1

10.0

 

Equity ratio, %

65.1

63.5

 

Gearing, %

-32.1

-34.3

 

Average personnel

25,294

24,624

+3

Gross capital expenditure, EUR million

69.5

143.0

-51


*) Operating profit for 2005 included EUR 11.6 million in non-recurring items, the most significant item relating to the dissolution of Finland Post's Pension Fund.

Statement by Jukka Alho, President and CEO:

Finland Post aims to grow profitably and strengthen its position as an intelligent logistics services provider in northern Europe. In 2006, consolidated net sales rose by 15 per cent, most of this growth coming from outside Finland. However, in spite of a slight improvement in like-for-like operating profit, we cannot rest content with our cost trends.

Mail Communication increased its market share in direct marketing services. A fall in addressed letter mail volumes mainly affected 1st class letters. Over the next few years, the transformation currently underway in letter mail will require continuous adjustments while presenting us with major challenges in terms of improving our profitability.

Information Logistics was successful in data management services in particular, with customers e.g. in the banking sector outsourcing extensive business processes.

Acquisitions enabled Logistics to establish a foothold in Norway and Sweden and the business group reinforced its international transport network by entering into major partnerships in Europe. Logistics operations will also expand eastwards when the Moscow Logistics Centre opens in spring 2007.

FOR FURTHER INFORMATION, PLEASE CONTACT
Jukka Alho, President & CEO, tel. +358 (0)20 451 5600, jukka.alho@posti.fi
Tuija Soanjärvi, CFO, tel. +358 (0)20 45 20907, tuija.soanjarvi@posti.fi
www.itella.com/group/english

APPENDICES
Board of Directors’ Report
Income Statement and Balance Sheet