Swiss Post Annual Report 2018
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SWISS POST IS RIGHT HERE. FOR EVERYONE. ANNUAL REPORT 2018 Jeremy Heierli Import Team Leader, Zurich-Mülligen Foreword 3 international letter center Page 23 Strategy, transformation and 7 responsibility Business performance 17 Group 18 PostMail 22 PostLogistics 28 PostalNetwork 34 Swiss Post Solutions 40 PostFinance 44 PostBus 50 Andrea Schweizer Head of Corporate Communication, PostFinance, Berne Employees 55 Page 45 Corporate governance 59 Key figures 69 Hanh Vu Financial Controller Document Input, Swiss Post Solutions, Switzerland Page 41 This Annual Report is supplemented by a separate Financial Report (management report, corporate governance and annual financial statements), comprehensive Annual Report key figures and a Sustainability Report. Information on reference sources is provided on page 68. Thomas Lüthi PostBus driver / in-house and practical trainer, Bernese Oberland Page 51 Alessandra Martina Liebi Spina International Head of Ecublens Forwarding Specialist, branch PostLogistics, Dintikon Page 35 Page 29 Simple yet systematic – Swiss Post. We connect the physical and digital worlds, setting new standards with our products and integrated solutions. We make it easier for our customers to operate in today’s complex environment, giving them greater scope to succeed. 20% is the CO2 efficiency improvement over 2010 achieved by Swiss Post 7,691 million by the end of 2018. francs in operating income, down 373 million francs year-on-year. 83 points Customer satisfaction remained stable, equalling the high level of 405 million the previous year. francs in Group profit, down 122 million francs year-on-year. 58,180 employees, 1,189 below 80 points the headcount for the previous year. The high index value for employee commitment, which declined by one point year-on-year, is a testament to motivated and committed employees. Group Business activities Communication market: Letters, newspapers, Financial services market: Payments, savings, small goods, promotional mailings, innovative investments, retirement planning and financing business process outsourcing (BPO) in docu- in Switzerland, as well as international payment ment solutions in Switzerland and transactions internationally Passenger transport market: Regional, mu- Logistics market: Parcel post, express and nicipal and urban transport, integrated services SameDay services, and e-commerce and logis- and mobility solutions in Switzerland and in tics solutions within Switzerland and abroad selected countries abroad Our performance in 2018 Key figures 2018 Strategic goal Operating income CHF million 7,691 – Operating profit (EBIT) CHF million 501 600 Group profit CHF million 405 – Equity CHF million 6,732 – Degree of internal financing – investments Percent 100 100 Addressed letters In millions 1,898 – Parcels In millions 138 – Avg. PostFinance customer assets CHF billion 119 – PostBus passengers (Switzerland) In millions 156 – Customer satisfaction Index (scale of 0 – 100) 83 ≥ 78 Headcount Full-time equivalents 41,632 – Employee commitment Index (scale of 0 – 100) 80 > 80 1 CO2 efficiency improvement since 2010 Percent 20 25 1 Target for 2020. Organization chart as at 31 December 2018 Swiss Post Ltd Board of Directors Group Audit Urs Schwaller Martin Bieri a. i. Executive Management Strategy & Ulrich Hurni a. i. * Transformation Michel Franzelli Post CH Ltd PostBus Ltd PostFinance Ltd Finance Alex Glanzmann * Postal- PostMail PostLogistics Swiss Post Network Solutions Human Resources * Valérie Schelker * * * * Thomas Baur Ulrich Hurni Dieter Jörg Vollmer Christian Plüss Board of Directors * Corporate Center Bambauer Rolf Watter Markus Schumacher ** Executive Board Communication Hansruedi Köng Matthias Dietrich a. i.** Development & Innovation Claudia Pletscher ** Corporate Accounts Jörg Vollmer * Real Estate Thomas Baur * Informatics Dieter Bambauer * * Member of Executive Management ** Member of Extended Executive Management Markets and segments Communication market PostMail offers private and business cus- Key figures 2018 tomers high-quality products and tailored Operating income CHF million 2,721 solutions for letters, newspapers, small Operating profit CHF million 388 goods and promotional mailings, from ac- Addressed letters In millions 1,898 ceptance right through to delivery. This range is complemented by its digital services. Unaddressed items In millions 1,676 Newspapers In millions 1,075 Headcount Full-time equivalents 14,979 Swiss Post Solutions is a leading provider Operating income CHF million 583 of solutions for business process outsourcing Operating profit CHF million 31 and innovative services in document Number of coun- solutions. Area of activity tries 15 Headcount Full-time equivalents 6,789 PostalNetwork offers the densest network Operating income CHF million 1,045 for postal services in Europe. Whether at Operating profit CHF million – 94 home, on the go or digitally: a wide range of Inpayments In millions 139 access points for private customers and SMEs Headcount Full-time equivalents 4,753 ensures even greater customer proximity on a daily basis. Logistics market PostLogistics offers logistics solutions for Key figures 2018 national and cross-border parcel delivery, Operating income CHF million 1,678 as well as courier, express and SameDay Operating profit CHF million 145 services. It takes care of transport and ware- Parcels In millions 138 housing logistics and provides private cus- tomers with services that make it easy to Express items In millions 2 receive parcels. The range is completed by Headcount Full-time equivalents 5,400 a portfolio of e-commerce services and logistics solutions in the healthcare sector. Financial services market PostFinance is the ideal partner for anyone Key figures 2018 who manages their own finances. Whether Operating income CHF million 1,704 in payments, investments, retirement plan- Operating profit CHF million 220 ning or financing – PostFinance offers its Customer accounts In millions 4.5 customers simple, straightforward products with fair conditions. Inflow of new money CHF million – 822 Avg. PostFinance customer assets CHF billion 119 Headcount Full-time equivalents 3,333 Passenger transport PostBus is the market leader in public bus Key figures 2018 market transport in Switzerland. With its fleet of Operating income CHF million 954 modern vehicles, PostBus carries millions of Operating profit CHF million – 58 passengers every year. In regional passenger Domestic passengers In millions 156 transport, the bus company is developing an increasingly strong presence in cities and Domestic vehicle kilometres In millions of km 120 conurbations alike. Vehicles Number 2,412 Headcount Full-time equivalents 3,354 PostBus investigation Consistent rehabilitation in 2018 For Swiss Post, and for PostBus in particular, 2018 was a challenging year: during the course of an ordinary audit, the Federal Office of Transport (FOT) examined the accounting of services between the PostBus companies within PostBus Switzerland Ltd. As a result, irregularities concerning financial reporting under subsidy law on regional passenger transport procured during the period 2007 to 2015, as well as excessive transfer prices in 2016, were identified. For a number of years, PostBus used irregular accounting practices and, as a result, received excessively high compensatory payments for the provision of its public transport services. To clarify the details of the matter, Swiss Post launched an immediate investigation by independent experts in November 2017. Chairman of the Board of Directors Urs Schwaller subsequently announced that Swiss Post would repay every franc owed to the Confederation and the cantons. Consequences of the investigation In June 2018, Swiss Post published the results of the external enquiry report and the independent expert evalua- tion. Both clearly showed the severity of the unlawful reclassifications at PostBus, how they continued for years and how manipulation took place. As a result, the Board of Directors undertook operational and personnel-related measures which constituted the first step towards a new start. All members of the PostBus Executive Board were dismissed due to a lack of confidence in them. CEO Susanne Ruoff also left the company. In terms of operations, it was announced that, along with other measures, the reorganization known as IMPRESA will be reversed. This holding structure, adopted in 2014 and introduced on 1 January 2016, was designed to protect profits by setting excessive transfer prices between PostBus subsidiaries. From 2019, IMPRESA will be re- placed by a transparent, functional form of organization. In addition, an orderly exit from the passenger transport business in France is being reviewed. Repayment of amounts owed Under the auspices of the FOT and together with the Conference of Cantonal Directors of Public Transport (CPT), the amount to be repaid to the Confederation, the cantons and the municipalities was determined over the summer months. In September 2018, Swiss Post announced that PostBus will reimburse the irregular compensa- tory payments to the Confederation and the cantons in full. In accordance with this objective, PostBus pledged to make repayments amounting to 188.1 million francs, including interest, for the years 2007 to 2018, as well as 17.2 million francs in voluntary repayments for the lapsed contributions in the period prior to 2007. Under the aegis of the FOT and CPT, PostBus concluded the framework agreement on 14 December 2018. This enabled Swiss Post to transfer