Favorable economic trend boosts Itella’s result

Interim report for January–June 2007

• Q2 net sales grew by 9 per cent, coming to EUR 408.2 million. Six-month net sales grew by 10 per cent, coming to EUR 839.7 million.

• All business groups reported improvements in net sales, Itella Logistics in particular. Organic growth was 5 per cent for Q2 and 6 per cent for the six-month-period. In both periods, international operations represented 25 per cent of consolidated net sales.

• Q2 consolidated operating profit improved by 37 per cent, to EUR 19.7 million, accounting for 4.8 per cent of consolidated net sales. Six-month consolidated operating profit grew by 26 per cent, to EUR 65.6 million, accounting for 7.8 per cent of consolidated net sales. Itella Mail Communication and Itella Information reported improved operating profit.

• Itella Mail Communication launched a major project to develop mail sorting and delivery. The project involves investments of EUR 150 million over the next few years in equipment, IT systems and premises in Finland.

• New logistics centres started operating in Moscow and Kaunas, Lithuania. A contract was signed in May on the construction of a logistics centre in St. Petersburg, due to begin operating in early 2008.

• Company acquisitions by Itella Logistics continued with the purchase in Finland of SHW Logistiikka Oy, a furniture business service operator and, in Sweden, that of PS Logistics AB in July.

• A change of company name took effect in early June, as Finland Post was renamed Itella Corporation. Consumer service provision in Finland continues under the marketing name, ‘Posti’.