Itella Oyj - Company Announcement

Itella clarifies its financial goals and launches performance improvement program

Itella Corporation, Stock Exchange Release, April 10, 2013, at 9:30 am EET

Itella's operating environment is in transition. Digital services are replacing
traditional ones to an increasing extent, competition is more intense and
growth in the economy has slowed down. At the same time, online commerce and
related parcel volumes are growing rapidly, requiring investments in new
technology and equipment. The universal service obligation applicable to Itella
imposes constraints on the provision of postal services in Finland. 

Itella's financial performance needs to be improved in order for it to make
investments needed to maintain company's competitive edge and finance the
services under the universal service obligation. Taking into account changes in
the operating environment and future financial preconditions, Itella's Board
has clarified the long-term goals of Itella Group for 2013-2017. 

The main focus of financial goals shifts from growth to profitability
improvement and to strengthening the Group's solvency. Itella's goal is that
its: 

  -- operating profit percentage exceeds 5%;
  -- return on invested capital is at least 10%;
  -- gearing does not exceed 35%;
  -- annual net sales increases at least to an extent which corresponds to the
     sector's growth.

In addition, the goal is to maintain a financial position which enables an
investment-grade credit rating in the financial market. 

Itella launched a cost-cutting program in 2011. The program has achieved
estimated savings of €53 million. However, despite the steps taken, Itella's
performance is not at the intended level, which means that Itella is launching
a new performance improvement program for 2013-2014 to secure its
competitiveness and profitability. The goal of the updated program is to
achieve cost savings of €100 million. 

Related to the long-term goals, Itella will:

  -- renew its IT operating model
  -- starts cooperation  negotiations to improve efficiency


For more information and interview requests, please contact:

Itella MediaDesk, tel. +358 20 452 3366 (Mon-Fri 8:30 a.m. - 4:30 p.m.)

Itella Group provides solutions for information and product flow management.
Itella operates in the fields of mail communications, logistics, and financial
management in Europe and Russia. Net sales in 2012 amounted to EUR 1,947
million. The number of staff is approximately 27,500. Corporate services are
delivered under the Itella brand, while the Posti brand is used for services
targeted at consumers in Finland. Further information is available online at
www.itella.fi.

Attachments:

Co-operation.pdf

ICT_operating_model_20130410.pdf