2.2 STRATEGY OF THE POŠTA SLOVENIJE GROUP

Mission

The innovative satisfaction of the need for logistics, postal and information services, and the generation of added value for the owner and employees, taking into account sustainable principles of development in Slovenia, the region and on global markets.

Vision

With its solutions and high-quality services, Pošta Slovenije will be indispensably linked to the needs of citizens, companies and the state, such that it will be:

a provider of universal postal services throughout Slovenia;

a leading postal operator that provides comprehensive support to households and companies in Slovenia, and comprehensive logistics support to companies in the region;

an outstanding provider of comprehensive logistics services in Slovenia and one of the key providers in Southeast Europe; and

a major provider of IT services in Slovenia and the region.

Values

Excellence – awareness that users are the centre of everything we do.

Innovation, creativity, entrepreneurship and commitment – superior results can only be achieved with satisfied and motivated employees. We encourage employees to make their ideas a reality.

Responsibility – to co-workers, users, the wider community, the natural environment and the Pošta Slovenije Group.

Partnership and trust – the Pošta Slovenije Group builds sound relationships with all stakeholders: employees, customers, suppliers and the owner.

The Pošta Slovenije Group has received SDH’s consent to its new strategy for the period 2020–2025 and to the revised financial projection for the SDP 2021–2025

The Strategic Development Programme (hereinafter: SDP 2025) is the core corporate document that defines the plan for the future development of the Pošta Slovenije Group (hereinafter also: the PS Group or Group).

Revision of the financial projection for the SDP 2025

In January 2020 SDH gave its consent to the revised SDP 2025 and also tasked the Pošta Slovenije Group with assessing the valuation of the SDP 2025, taking into account the impact of the integration and the actual synergies of the acquisition of Intereuropa d. d. In accordance with this decision, the financial projection for the SDP 2025 to which SDH gave its consent in January 2021 was re-assessed or revised in 2020.

The main factors in the revised projection were the acquired actual and detailed data on operations, synergies and the revised strategic plans of the Intereuropa Group, which were acquired in the scope of the integration process, and the impact of the COVID-19 pandemic and all the consequences and changes that it has brought to the social and business environment. The COVID-19 pandemic significantly changed the habits of users, accelerating digitalisation in all segments, bringing a sharp rise in online retail trade, changing GDP trend projections in Slovenia. Europe and globally, enhancing regionalisation (changes to supply chains, taking into account the relocation of a portion of the production from Asia back to Europe), automation and robotisation (robots for assistance in warehouses, automated control of vehicles, robotic process automation) and integration of processes (according to the ‘just in time’ service provision and traceability trends there has been a notable growth in the integration of business processes between customer and logistics firm).

In terms of the Pošta Slovenije Group, these trends in global logistics mean an accelerated decline in the number of letter services (and an increased burden for maintaining the legally prescribed scope of the postal network and quality of delivery), significant growth in parcel services (resulting in the need to increase capacities) and better projections of ICT services. The logistics industry in Slovenia has suffered a blow in 2020 due to COVID-19, particularly in the transport segment, especially in air and bus transport, but the scope of logistics and parcel services in the region is increasing. We also expect similar trends to follow.

Key highlights of the revised projection and SDP 2025

By also taking account of all the factors changed in 2020, the Pošta Slovenije Group remains ambitious in its development plans and in 2025 is planning more than EUR 500 million in revenues, which is even slightly above the figures planned in the 2020 version. We also slightly increased the planned value of investments in the computerisation, digitalisation and automation of operations and the expansion of capacities (space and transport) in Slovenia and on the markets of Southeast Europe. A comparison of profitability ratios shows that the Pošta Slovenije Group will achieve comparable ratios within the sector by 2025.

Key strategic policies and targets of the SDP 2025 have not changed according to the confirmed version from January 2020; the Pošta Slovenije Group will continue its transformation from a traditional postal operator to an international postal and logistics firm, and will primarily pursue growth in the area of parcels, logistics services and IT solutions. We informed the internal and external publics thereof in the extent allowed by the epidemiological situation in 2020.

Figure 2: Key strategic pillars of the SDP 2025

The strategic policies are therefore primarily the focus of Pošta Slovenije Group’s resources on the business segments of parcel and logistics services, which correspond to the Group’s core competences, and achieving operational excellence. In both strategic business segments, we will focus on increasing capacities, efficiency and the quality of services, and on strengthening our presence on regional markets where we already operate.

The integration of Pošta Slovenije and Intereuropa was a priority task in 2020, and is the right path to becoming the leading provider of logistics and parcel services for end-customers in the region.

Pursuant to our strategy, we will continue in the future to maintain our leading share of the postal services market and our status as a provider of universal postal services throughout the entire territory of the Republic of Slovenia in accordance with the prescribed level of quality, where the adaptation of quality to the actual needs of users and changing conditions on the postal services market will be crucial. We will continue to promote professional and constructive dialogue with the regulatory body and competent ministry, adjust the pricing policy and continue to optimise the network with the aim of continuing to offer customers affordable letter services, while maintaining profitability. In the segment of IT services, in the scope of a newly consolidated offer at the Posita d. o. o. subsidiary, we will build on our basis as an established provider of a platform for information services for contemporary digital operations, which in one place provides information infrastructure, a business information system, document solutions, the digitalisation of documentary material and long-term secure storage, electronic exchange and delivery of documents, and trust-based services.

Strategic projects and investments

Given positive forecasts of growth in both domestic and cross-border e-commerce, which is the main driver of our sector, our strategic projects and investments are focused on the modernisation of the machine-sorting of parcels and letters (automation and robotisation), digitalisation of operations, computerisation of logistics processes, modernisation/electrification of the vehicle fleet, expansion of the capacities of mail sorting and logistics centres and construction of additional warehousing and transhipment capacities, optimisation of the postal network, recasting of parcel operations and development of logistics services, and an improved user experience by establishing a single access point for all customers. The objectives that we pursue are cost optimisation and improved operational efficiency, and thus improved profitability. With the aim of improving competitiveness and the satisfaction of the users of our services, the digitalisation of operations will be crucial for the Pošta Slovenije Group. In addition to new technological solutions, this must also include the development of the digital knowledge and skills of employees.

In the coming years we will be focusing our resources in the area of new technologies on modern parcel sorting equipment, including robots for transporting shipments, sensors and RFID technology for tracking shipments, modern warehouse equipment, the parcel machine and parcel delivery box network, the continued computerisation of logistics processes, digital interaction with customers and e-mobility (e-vehicles and charging stations).

Social responsibility and energy-efficiency

Satisfied employees are the heart of the Pošta Slovenije Group and vital to customer satisfaction. We will continue to maintain a culture that is based on respect, professionalism and superior execution that will allow us to attract and retain successful professionals. We will also continue to dedicate our attention to professional training and education, and to occupational health and safety. The introduction of an efficient system of remuneration and ensuring the optimal HR levels are of vital importance for the further development of the Group.

The Pošta Slovenije Group is environmentally oriented, and strives for the use of environmentally friendly transportation equipment and energy efficiency in buildings. Sustainability is becoming more and more crucial for operation in the logistics sector, as governments, cities and providers are making commitments at an increasing rate to reduce CO2 emissions, energy consumption and waste. Sustainable logistics, the optimisation of processes, materials, new drive elements and smart devices, provides major potential for the logistics sector to become more environmentally-friendly.

We also see numerous business opportunities in the future in technological and commercial innovations. We will therefore strengthen our agile approaches to open innovation and actively work with start-up companies and participate in EURopean projects.

Through the active governance of subsidiaries, the consolidation thereof and the search for synergies between Pošta Slovenije Group companies, we strive to achieve the maximum possible business effects and an appropriate return-on-equity by companies and the Pošta Slovenije Group as a whole.