POST DANMARK POSTEN NORDEN Short presentation of Posten

POST DANMARK / POSTEN NORDEN Short presentation of Posten Norden - Post Danmark and working relationship with staff organisations

2 05/03/2021 POST DANMARK / POSTEN NORDEN Agenda • Posten Norden AB in brief • Post Danmark’s operations, competition and challenges • Cooperation with staff organisations

3 The largest postal group of the Nordics with four strong business areas 05/03/2021 POST DANMARK / POSTEN NORDEN A mail business in Denmark Leader in domestic distribution solutions to households and businesses alike A mail business in Sweden Leader in domestic distribution solutions to households and businesses alike A logistics business in the Nordic region Leader in efficient flows to, from and within the Nordic region A pan-European information logistics business Leader in information solutions for efficient customer communication 3 3

4 05/03/2021 POST DANMARK / POSTEN NORDEN Strongest postal group of the Nordics • • Each day, Posten Norden delivers around 30 million items of mail of world-class quality Posten Norden has 12, 000 letter carriers in Sweden and 10, 750 delivery staff members in Denmark • Posten Norden has around 1, 600 partner outlets in Sweden and around 140 post offices and 600 post shops in Denmark • Posten Norden has some 4, 200 parcel distribution points with generous opening hours in Sweden, Denmark, Finland Norway • Posten Norden’s home market is the Nordic region POSTEN NORDEN (2009) Revenue SEK 44. 6 billion Operating profit SEK 284 million Number of employees Around 50, 000

5 05/03/2021 POST DANMARK / POSTEN NORDEN From royal decree to international market-oriented limited liability company Ø The story of Post Danmark goes back more than 380 years 1624 Ø 1624: By Royal Decree of 24 December 1624, it was established that letters were to be carried by Post Office messengers alone Ø 1995: Monopoly of distributing letters up to 250 grams Ø In 1995, Post Danmark was converted into an independent public enterprise Ø On 28 June 2002, Post Danmark was converted into a limited liability company Ø 2003: Monopoly of distributing letters up to 100 grams Ø In 2005, Post Danmark A/S was partially privatised Ø 2005: Monopoly of distributing letters up to 50 grams Ø With effect from 1 January 2006, Post Danmark and CVC purchased shares in the previously state-owned Belgian postal service Ø In April 2008, Post Danmark A/S and Posten AB agreed to sign a letter of intent Ø January 2009 – Merger between Post Danmark A/S and Posten AB 2011 Ø By 2011: Full liberalisation of the Danish postal market

6 05/03/2021 POST DANMARK / POSTEN NORDEN Post Danmark performs an important social task 9. 7 million items of mail handled on a daily basis: Ø 3. 3 million letters Ø 0. 13 million parcels Ø 6. 3 million items of magazine mail, unaddressed mail, daily newspapers and local weeklies Letter sorting centre Parcel sorting centre State-of-the-art production apparatus: Ø 3 letter sorting centres Ø 2 parcel sorting centres Ø 309 distribution centres Ø 114 company-operated branches Ø 626 full-service outlets Ø 106 post shops Ø 102 ’Døgnposten’ self-service stations Ø 10, 200 letter boxes Ø 2. 6 million households Ø 280, 000 businesses

7 05/03/2021 POST DANMARK / POSTEN NORDEN Excellence – new corporate culture Background – challenges in the mid-nineties • ’Us and them’ culture • Low standard of management quality • Many strikes • ”Piece work” scheme • Implementation of efficiency improvement projects: multiple projects but few results • Creation of a corporate culture with focus on continuous improvements in response to the changing needs of our customers and in society Purpose • To improve our competitiveness

8 05/03/2021 POST DANMARK / POSTEN NORDEN Excellence and TIQ Process Total involvement Self-supporting teams Kaizen – Continuous improvements Dialogue meetings Proposal system Continuous improvements Focus on customers and employees Customer satisfaction survey Process orientation Quality management Employee satisfaction survey Management development Self-supporting teams Working environment The Social Chapter olvement Total inv Focus on custome rs and emp loyees Continu ous im provem ents Focus on facts Process orientation - PDCA Kaizen – Continuous improvements Benchmark studies Proposal system Environmental management TIQ everywhere ent mmitm ent comm ment co itment Managem Focus on facts Management commitment Management development Training cascade Rules of conduct Lean Target management Self-assessment TIQ everywhere Customer satisfaction survey Employee satisfaction survey Self-assessment - Excellence Benchmark system Target management agreements

9 05/03/2021 POST DANMARK / POSTEN NORDEN Post Danmark is one of the largest workplaces in Denmark • We employ nearly 1 per cent of the total workforce in Denmark – around 18, 000 full-time employees • Distribution, Letter Production and Transport account for around 80 per cent of all employees • We find it important that the composition of our employees reflects the surrounding community

10 05/03/2021 POST DANMARK / POSTEN NORDEN Employee results – employee satisfaction • MQW survey: Questions on satisfaction (scale 1 -5) • Workplace • Team • Immediate superior • Process and tools for dialogue, pointing out focus areas and setting targets in each team • We will not achieve results without competent and motivated employees • Satisfied and proud employees are a precondition for achieving good results MQW survey every year – all employees

11 05/03/2021 POST DANMARK / POSTEN NORDEN Self-supporting teams create good results • A self-supporting team is a group of employees that cooperates to achieve common goals within frames set for the work • A self-supporting team consists of 4 – 20 employees • A self-supporting team is a way to organise work which creates committed and motivated employees through, among other things, their participation in the decision process • Self-supporting teams create better results in significant areas: Ø Ø • Economy Quality Sick absence Employee satisfaction Frames and results are assessed and discussed with the participation of the staff organisations

12 05/03/2021 POST DANMARK / POSTEN NORDEN Collective agreements realigned with those of the Danish Industries - background and purpose • Background – Post Danmark’s collective agreements were special local agreements in relation to: • the collective agreement of the Danish Industries • the salaried employees’ agreement of the Danish Industries • Purpose – Clarify special provisions and local agreements to be applicable in relation to collective agreements of the Danish Industries • Structure – Application of collective agreement – Special provisions – Local agreements

13 05/03/2021 POST DANMARK / POSTEN NORDEN Staff structure and relationship with staff • Employees are organised according to staff qualification / professional qualification • Post Danmark a member of the Confederation of Danish Industries (DI) • Collective bargaining • As a cooperation partner • Involvement in connection with pay, employment and dismissal • Assistance and support (e. g. privatisation and merger) Staff structure

14 05/03/2021 POST DANMARK / POSTEN NORDEN Objectives and methods of cooperation • Development and increased efficiency are joint aims for management and employees • The use and development of new technology is vital to competitiveness, employment, the working environment and job satisfaction • The day-to-day cooperation is based on interaction between management and employees • Incentive management and active participation by employees and their elected representatives are a precondition for developing the cooperation in an enterprise

15 05/03/2021 POST DANMARK / POSTEN NORDEN Cooperation • On the basis of the cooperation agreement, a joint consultation committee has been set up to strengthen the cooperation between Company Management and the employees • The opportunity for representation in joint consultation committees must be given to all employees – General Consultation Committee (HSU) • Common for the whole company • Subcommittees, if relevant – Sectional Consultation Committee (OSU) – Local Consultation Committee (LSU) HSU OSU LSU LSU

16 05/03/2021 POST DANMARK / POSTEN NORDEN Tasks are changing their character – cooperation on employee development • Need to shift from labour intensive manual processes to automated mechanical processes • Need to optimise competencies of the employees • Development of competencies: Employees retrained for work with sophisticated sorting machinery and robots • In close dialogue with the shop stewards, an extensive training programme was launched: – Reading and writing courses – IT courses – Focus on health and safety at work • Training programmes and status are subject to discussions held on an ongoing basis between management and employees / shop stewards in standing subcommittees under the joint consultation committee

17 05/03/2021 POST DANMARK / POSTEN NORDEN Cooperation on development and changes • New processes, declining volumes • Need to adapt the number of employees • Management and staff organisations have together defined principles for: – Selecting which employees are to be given which jobs – e. g. in connection with the implementation of new technology – Handling employees who have become redundant • Internal job centre within KHC • Development of competencies • Post Danmark’s internal job centre (Jobbørsen) • Dismissal • We discuss on an ongoing basis the principles and processes in standing subcommittees under the joint consultation committee

18 05/03/2021 POST DANMARK / POSTEN NORDEN Involvement of employees in reorganising operations • Working groups with the participation of employees are set up in connection with the implementation of new technology • These working groups perform studies and are given decisive influence on, for example, location of the new machinery, definition of new working processes, routines, etc. • Systematic involvement of the safety organisation in the implementation of changes – Workplace assessments (APV) – Safety checks – Mental working environment etc. • LEAN – all employees participate in continuous improvements and streamlining of processes to maintain and strengthen the company’s competitiveness – Value stream mapping, Kaizen, waste, 5 S, flow

19 05/03/2021 POST DANMARK / POSTEN NORDEN Focus on increased competitiveness and cost effectiveness • Letter volumes influenced by electronic substitution, liberalisation and growing competition • Economic crisis: It is expected that volumes will stop decreasing – but an increase in volumes to the level before the economic crisis will not occur • Continuous need for capacity adaptations and cost effectiveness • Focus on innovation and product development – Facility Service