Cloud Consessions PostNord 15-10-22

V.1.0

A Nordic end-to-end offering

Campaign follow-up

Invoice dispatch

Target group analysis

Digital marketing

Physical direct mail

Warehouse management/

pick & pack

Parcels and logistics

Invoice preparation

Customer communication

drives business …

Logistics solutions enable ...

CAMPAIGN FOLLOW-UP ATTRACT CUSTOMERS

DRIVE CONVERSATION

CUSTOMER INSIGHT

DISTRIBUTE GOODS

PROCESS GOODS

SEND PAYMENT

CREATE INVOICING DATA

Increasing amounts of

data

Increasing Price / Cost

Pressure

Services increasingly consumer

driven

2

Market trends

0

20

40

60

80

100

120

140

0

1 000

2 000

3 000

4 000

10 11 12 13 14

Total mail volumes, Denmark

Total mail volumes, Sweden

Total parcel volumes

Total mail and parcel volumes Millions of letters

2014: Parcel volumes increased 9% compared to 2013, with e-commerce-related B2C parcel volumes showing growth of 15%.

2014: Mail volumes decreased totally -5% compared to 2013, of which - 12% in Denmark and - 4% in Sweden.

+9%

-5%

Millions of parcels

Transformational Change – from mail to e-commerce / Logistics 3

Growth in e-commerce

App. SEK 140 bn Nordic market

in e-commerce in 2014

10% annual growth forecast for e-commerce in Nordic region PostNord growth in B2C volumes in the Nordic region in 2014:

15%

0

10

20

30

40

50

03 04 05 06 07 08 09 10 11 12 13 14

E-commerce sales in Sweden SEK bn

Source: E-barometer 2014.

4

Strategy – leading e-commerce player

in Nordic region • First choice on the part of both

senders and recipients for delivery to, from and within the Nordic region

• Innovative market solutions

• Best B2B partner for growth

24 h

Big Consumer Driven

Dataflows

5

Strategy – a clear road to the future

BUILD REPOSITION DEVELOP

Gain position within e-commerce Growth within logistics New communication offering Common service logistics business model

Harmonized Nordic product portfolio Goal-oriented performance culture Sustainability in everything we do

PostNord 2020

2014 2020 2015

The Nordic leading logistics and communication business

Reduce and adapt the cost base Secure stable and efficient IT operations Integrated production model

BUILD

REPOSITION

DEVELOP

New organization 10 Strategic priorities Common brand Stability and control of costs

6

7

IT Strategy Execution Clearly Defined Supported by Contributing to

IT Key Strategic Initiatives

Integrate sustainability in everything we do

Develop a goal-oriented performance culture

Reduce and adapt the cost base

Ensure stable and efficient IT operations

Implement an integrated PostNord production model

Take position as the leading Nordic e-commerce player

Ensure profitable growth of prioritized logistic segments

Develop the PostNord business model within service logistics

Secure a competitive mail and comm-unication offer now and for the future

Implement a harmonized and customer-oriented Nordic product portfolio

Advance

Reposition

Build

IT Operational Stability

Application Reduction

IT Organization & Governance

IT Sourcing

Deliver IT-Solutions For all corporate priorities

Ten Group Strategic Priorities

PostNord Strategy Group IT Strategy

Cloud First Approach

Simplifiction Consolidation

Simplification & Cloud First

Order of development

− Reuse/Adapt what we have Make Cloud Ready

− Buy new functionality as a service BPO, Saas

− Buy new standard software Has to be Cloud Ready

− Build new functionality Cloud ready from the start

This covers both internal and external cloud 8

As-Is Cloud Elements

9

Overlapping Applications

Multiple Datacentres

BPO (Salary)

SalesForce Solution

(+ some other Saas

solutions)

Amazon Infrastructure (mainly test,

Rapid prototyping)

O365

Azure

(small, tests)

SAP Cloud (under review)

Capacity Services

(full Flex)

Capacity Services (limited Flex)

Internal Cloud

As-Is To Be

10

Overlapping Applications

Multiple Datacentres

Cloud Solutions Capacity Solutions (Internal Cloud)

BPO Solutions

Digitalisation Impact

DIGITAL TOUCHPOINTS – FRONT END IT Systems of Engagement

INTEGRATION HUB / API (including Masterdata)

11

Customer – Consumer

BACK-END IT (APPLICATION REDUCTION)

Systems of Record

Business Development

• Customer Solutions

• Months – Quarters

• Maximise reuse of components

Applications Reduction

• Product Harmonisation

• Process Simplifications

• Application Reduction

• Quarters – Years

Different mix & speed for Front and Backend IT

12

Many Overlapping Applications

Multiple Datacentres

Cloud Solutions Capacity Solutions (Internal Cloud)

BPO

Major disruptive change – why take the pain ? Better end-2-end service responsibility BETTER SERVICE

Flexibility – over day, over week, seasons

Better cost points

13

Transformation Focus Area’s

Information Security

14

Transformation Focus Area’s

Our “cloud” is expected to be very hybrid

Integration & Architecture key (Many clouds can become a new “complexity storm”)

15

Governance needs to be adapted to cloud solutions

16

IT Service

Integrator Competencies

and Skills

Cloud Solutions Capacity Solutions (Internal Cloud)

BPO

Group IT

To Build Up

No Longer Needed

Partners

Transformation Focus Area’s

Information Security

Integration & Architecture (Many clouds can become a storm)

Governance

Real “flex out”

17

In Summary Cloud solutions will add tremendous value to PostNord

Service

Cost

Adapting applications to (internal) cloud is were a lot of the work is

It will mean a step change regarding governance, the business will have to take more and more responsibility for their solutions

18

Questions

19

Cloud Consessions PostNord 15-10-22

V.1.0