Annual Report 2012 Postnl Brand Vision in a World Where Digital Applications Are Playing an Ever Delivery and Retail
Total Page:16
File Type:pdf, Size:1020Kb
Annual Report 2012 PostNL brand vision In a world where digital applications are playing an ever delivery and retail. With smart combinations with digital greater role in our daily lives, there are more and more applications we can offer valuable solutions to our opportunities to send and receive messages. customers. These opportunities are unlimited, but often still unknown. That is why PostNL is an essential link in the market for That calls for an inventive and reliable organisation, that sending and receiving. We help our customers to make knows the way between sender and receiver like no other. use of all opportunities in mail, parcels and e-commerce. That organisation is PostNL. Because we know that way, with the highest quality and most intricate network in Introduction and financial and corporate responsibility highlights This is PostNL’s annual report for the financial year ended PricewaterhouseCoopers Accountants N.V. (hereafter 31 December 2012, prepared in accordance with Dutch referred to as ’PwC’) has been appointed as the external regulations. independent auditor of PostNL’s financial statements. PostNL N.V. is a public limited liability company with its PostNL has engaged PwC to provide reasonable registered seat and head office in The Hague, the assurance on its corporate responsibility (CR) statements. Netherlands. PostNL N.V. is listed on the NYSE Euronext in This assurance work is performed in accordance with the Amsterdam. Assurance Standard 3410N ‘Assurance Engagements Unless otherwise specified or the context so requires, Relating to Sustainability Reports’ as drawn up by the ‘PostNL’, the ‘company’, the ‘Group’, ‘it’ and ‘its’ refer to professional body of Dutch accountants (NBA). With PostNL N.V. and all its group companies as defined in regard to the GRI Application Levels System, PostNL was article 24b, book 2 of the Dutch Civil Code. assessed at the GRI A+ level. A detailed overview of the PostNL is domiciled in the Netherlands, which is one of G3.1 core indicators is provided in Annex 1. For a full the Member States of the European Union (EU) that has description of the scope of the reported CR data and the adopted the euro as its currency. Accordingly, PostNL has assurance obtained please refer to chapter 18. adopted the euro as its reporting currency. In this annual report the euro is also referred to as ‘€’. As required by EU regulation, as of 2005 the consolidated financial statements of PostNL N.V. have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. Annual Report 2012 PostNL at a glance Governance 13 Corporate governance 46 Letter from the CEO 14 Report of the Supervisory Board 54 1 From the CEO 4 15 Remuneration 61 Report of the Board of Management Investor relations 2 Company profile, company strategy and financial 16 Investor relations and shareholder information 67 framework 6 3 PostNL’s 2012 performance and outlook 2013 9 Performance statements 4 Mail in the Netherlands 19 17 Financial statements 70 5 Parcels 23 18 Corporate responsibility statements 149 6 International 26 7 PostNL Other 30 Annexes 8 Employees 32 Annex 1: Global Compact and GRI G3.1 index 161 9 Corporate responsibility, strategy and performance Annex 2: Data clarification table 166 35 summary Annex 3: Glossary and definitions 167 10 Regulatory environment 38 11 Risks 41 12 Board of Management compliance statement 44 Cautionary note with regard to “forward-looking statements” Some statements in this annual report are “forward-looking statements”. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside of PostNL’s control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industries in which PostNL operates and PostNL management’s beliefs and assumptions about future events. You are cautioned not to put undue reliance on these forward-looking statements, which only speak as of the date of this annual report and are neither predictions nor guarantees of future events or circumstances. PostNL does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this annual report or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. This annual report can also be viewed on PostNL’s corporate website: postnl.com. Any information on the website other than the contents of this annual report does not form part of PostNL’s annual report. Investing in PostNL’s securities involves risks. Carefully consider the principal key risks set out in chapter 11 of this annual report. PostNL at a glance At a glance Mail in NL Parcels International PostNL Other Underlying revenues 1 Underlying revenues per segment (in € millions) (in € millions) 285 285 248 248 4,297 4,276 -0.5% 1,4671,467 1,5701,570 2,4292,429 2,3052,305 20112011 20122012 608 608 730 730 2011 2012 1 Excluding intercompany revenues and foreign currency impact. Underlying cash operating income 2 Underlying cash operating income per segment (in € millions) (in € millions) (31) (31) (15) (15) 18 18 220 5 5 27 27 130 20112011 20122012 -40.9% 154 154 92 92 100 100 2011 2012 2 Operating income minus non-recurring items and changes to pensions/provisions. Employees 3 Employees per segment (in full-time equivalents) (in full-time equivalents) 1,149 1,149 1,192 1,192 33,827 33,284 5,323 5,323 5,323 5,323 -1.6% 2,575 2,575 2,839 2,839 20112011 20122012 24,78024,780 23,93023,930 2011 2012 3 Year average, excluding joint ventures. Profit for the year (excluding TNT Express) Net debt (in € millions) (in € millions) 238 241 +1.3% 1,224 1,002 +22.2% 2011 2012 2011 2012 2 PostNL Annual Report 2012 PostNL at a glance Key figures Underlying revenues (in € millions, except percentages) Updated outlook Performance 2011 2012 2012 2012 Mail in NL 2,429 - mid single digit -5.1% 2,305 Parcels 608 + low double digit 20.1%1 730 International 1,467 + mid single digit 7.0% 1,570 Total 4,297 stable -0.5% 4,276 1 Corrected for subcontractors and registered mail items external growth was +9.5%. Underlying cash operating income margin (in percentages of underlying revenues) Updated outlook Performance 2011 2012 2012 Mail in NL 6.3% 0 – 2% 0.8% Parcels 15.1% 13 – 15% 13.7% International 0.3% 1 – 2% 1.7% Total 5.1% 2 – 4% 3.0% Volumes in the Netherlands (in millions, except percentages) 2011 variance in % 2012 Mail in NL 3,777 -9.0% 3,437 • Single items 870 -10.0% 783 • Bulk mail 2,907 -8.7% 2,654 Parcels 106 13.2%2 120 2 Excluding registered mail items growth was +5.6%. Share performance 2011 2012 Share price at year end (in € ) 2.46 2.92 Earnings per share (in € ) 4.03 1.54 Dividend (in eurocents) 40.7 18.1 Number of issued shares at year end (in millions) 392 440 Market capitalisation at year end (in € millions) 965 1,285 Corporate responsibility performance 2011 2012 CO2 emissions (in ktonnes) 74 69 CO2 efficiency index 64.5 61.8 Fatal accidents 3 3 Absenteeism 5.4% 5.5% Customer satisfaction (overall Mail in NL) 89% 84% Employee engagement 56% 56% PostNL Annual Report 2012 3 Letter from the CEO | Chapter 1 1 From the CEO Financial results Our financial results for 2012 were in line with our outlook. Good results in Parcels and International offset the underperformance of Mail in the Netherlands. Mail in the Netherlands underperformed Mail in the Netherlands did not perform as expected. We experienced a 9% volume decline. This was mainly due to substitution by electronic media. Severe quality issues while at the same time not realising the necessary efficiency improvements also meant we had to stop implementing part of our reorganisation in April 2012. In the months May through December we worked hard to restore quality, and identify alternative saving options. Fortunately, by October quality was back up at levels exceeding 95% next-day delivery, our minimum quality requirement. We also used this period to test alternatives to the original rollout plan. These alternatives were evaluated against three criteria: their contribution to the savings target, the impact on quality for our customers, and impact on our employees. Today, we communicate our adjusted rollout plan, which meets these three Dear reader, criteria. 2012 was PostNL’s first full year as an independent stock-listed company. It was a year in which we faced several challenges, We were successful in renewing existing contracts and realising such as strong volume declines, the implementation of our cost our targeted price increases. savings programmes, discussions with our pension funds and our stake in TNT Express – to name but a few. Parcels performed well We saw strong volume growth in the 2C parcels market, and At the same time, we experienced growth in our parcels overall volumes grew 5.6% on a like-for-like basis. We are operations and had various achievements outside the successful in the rollout of the new logistical infrastructure for our Netherlands, particularly in Italy. On top of this, we managed to parcels operations, which is necessary to handle the increased get the quality of our operations in Mail in the Netherlands back volume and control our costs.