AN POST AN POST ANNUAL REPORT 2014 ANNUAL REPORT AN POST AnnuAl Report 2014 Proud of Progress. Better Prepared for the Future. CONTENTS AN POST ANNUAL REPORT 2014 Mission, Vision and Values 4 Board of Directors and Corporate Information 6 Chairman’s Statement 8 Management 10 Chief Executive’s Review 14 Financial Review 24 Universal Service 26 Sustainability 30 Stamp Issues and Philatelic Publications 36 Index to the Financial Statements 39 1 IN 2014 AN POST INCREASED TURNOVER & REDUCED OPERATING COSTS. 2 AN POST ANNUAL REPORT 2014 2013 2014 2013 2014 €811.7m €820.6m €823.2m €814.7m Turnover Operating Costs 3 OUR MISSION To provide world class postal, distribution and financial services with unrivalled local community access and global connections. OUR VISION Working together as a united team, our ambition is to outperform the competition, delivering a better quality service, more efficiently, to more customers by continuously adapting, innovating and implementing change. 4 AN POST ANNUAL REPORT 2014 OUR VALUES Quality Customer Service We deliver world class service quality by putting the customer first. Commercial Success We achieve commercial success to sustain and develop the business. Cost Competitiveness & Efficiency We run a cost competitive efficient Company. Respect & Personal Responsibility We respect each other and take personal responsibility. Respected Corporate Citizen We care for the environment and are engaged in the community. Innovation & Change We innovate, adapt and implement change successfully. 5 BOARD OF DIRECTORS AND CORPORATE INFORMATION 1. 4. 8. 12. Christoph Jennifer William Peter Mueller Loftus Mooney Ormond 2. 5. 9. 13. Donal Patrick Ed William Connell Compton Murray Scally 3. 6. 10. 14. Noel Thomas Tom Lorraine Adamson Devlin O’Brien Tormey 7. 11. 15. Paul Martina James Henry O’Connell Wrynn 6 AN POST ANNUAL REPORT 2014 1. Christoph Mueller 4. Jennifer Loftus 8. William Mooney 12. Peter Ormond B.A. (Bus. Mgt.) Chairman ‑ 2, 3 BAFS, FIA, FSAI, ACCA Employee Director Director Appointed 5 June 2013 Director ‑ 1 Appointed 1 November 2012 Appointed 8 March 2011 Mr Mueller has recently been Appointed 6 May 2014 Mr Mooney has worked in the postal Mr Ormond is currently Manager of appointed as a non‑executive Ms Loftus is currently employed as the service since 1982 and is currently Mid Ireland Tourism prior to which Director of Malaysian Airline System Actuarial Function Holder with Acorn employed as a Post Office Clerk. he was its’ Marketing Manager. He Berhad (MAS) and CEO‑designate Life Ltd. Her role includes responsibility He is a Director of The Prize Bond previously served as Community of Malaysia Airlines NewCo, which for statutory and regulatory financial Company Limited. He is a member Services Programme Manager with will be operational by July this year. reporting, financial modelling and of the National Executive Council Kilcormac Development Association. He is a shareholder representative solvency management. Ms Loftus of the Communications Workers’ His other work experiences are in of Khazanah Nasional Berhad, is a member of the Association of Union and Secretary of the Dublin property sales, sales & marketing and the national treasury agency Chartered Certified Accountants and Postal Clerks Branch. He is a graduate logistics. He is currently a member and strategic investment fund of is a Fellow of the Institute of Actuaries of the National College of Ireland of Offaly County Council and served Malaysia. He was Chief Executive (UK) and the Society of Actuaries in where he studied Human Resource as its Chairman in 2005/2006 and in Officer of Aer Lingus from Ireland. She has lectured in Actuarial Management and Employee Relations. 2012/2013. He is also a former Director September 2009 until February 2015. Science on a voluntary basis overseas of the Education Finance Board. 9. Ed Murray B.A., QFA He previously held senior executive and has co‑authored a research paper Director ‑ 3 positions in a number of companies examining the relationship between 13. William Scally M.A. Barrister‑at‑Law socio‑economic class and illness. Ms Appointed 7 May 2014 including TUI Travel plc (a FTSE 100 Director ‑ 4 Loftus is a member of the Fundraising In his current role as a Senior company), Daimler Benz Aerospace Appointed 11 December 2012 Committee for NBCRI (National Breast Stockbroker and Institutional Equity and Lufthansa AG. He served as Mr Scally has had a lengthy career in Cancer Research Institute). Sales person with Cantor Fitzgerald, the Chief Financial Officer of DHL Economics and Public Policy. Up until Mr Murray provides investment 2011 he worked on a cooperative basis Worldwide from 2002 to 2004 and 5. Patrick Compton advice to private and corporate as an independent public policy and became a member of the Executive Employee Director ‑ 4 clients, and is developing the Cantor public affairs consultant in the CIPA Committee of Deutsche Post AG in Appointed 1 November 2012; Sixth term. Fitzgerald institutional equity product framework with a wide variety of Irish 2004 after the acquisition of DHL by Mr Compton has worked in the postal offering. Mr Murray has over 18 years Deutsche Post AG. He is a member service for the past 42 years and his businesses and representative bodies. experience in investment markets, He was lead author of Fixing Finance, of the Board of Tourism Ireland. He current position is that of Partnership working in Ireland with local and has an MBA from the University of Co‑ordinator. He was a member the 2010 Institute of International international clients. Previous roles and European Affairs publication. Mr Cologne and he also completed an of the National Executive of the include Director of Institutional Equity Advanced Management Program at Communications Workers’ Union for Scally has lectured widely on The Irish Sales with NCB Stockbrokers, Senior Government and political process. He Harvard Business School. 22 years and its President in 1985. He Portfolio Manager with NCB Wealth was also a Director of The Prize Bond worked in Irish Sugar for many years 2. Donal Connell, C.ENG. F.I.E.I., B.E. Management and within the Treasury and as a public policy and economic Company Limited for many years. A Division of Irish Life and Permanent. Director ‑ 2, 3 former member of Roscommon Leader advisor to several Irish Governments. Appointed 14 August 2006 and County Development Boards, he 10. Tom O’Brien He also served on the board of Forfás. Mr Connell was appointed as Chief is active in community development BBS, M.Sc, F.C.A. 14. Lorraine Tormey Executive on 14 August 2006. He in his local area and he is the current Director ‑ 1 Postmaster Director began his career in the Department County Roscommon GAA Coaching & Appointed 11 June 2013 of Posts and Telegraphs and has Games Development Officer. Appointed 1 January 2013 Mr O’Brien is a Chartered Accountant Ms Tormey has worked in the family held senior management positions with extensive business experience 6. Thomas Devlin Post Office business in Rathowen, Co in Unitrode Corporation, 3Com in senior financial, commercial and Employee Director Westmeath all her life and she was Corporation and Maxtor Ireland general managerial roles, having Appointed 1 November 2012; Third term. appointed Postmistress there in 2001. where he was General Manager trained with KPMG. He specialises in Mr Devlin began his career in the Post She is also Postmistress of Austin Friar prior to joining An Post. He is a company turnarounds and change Office in 1976 when he joined the Street Post Office in Mullingar. Ms non‑executive Director of Xilinx management. In his most recent Department of Posts and Telegraphs Tormey is Secretary of the Westmeath Corporation’s European Board and project, he was Managing Director as a Junior Postman working as a Branch of the Irish Postmasters’ is a Director of Premier Lotteries of MXSweep Limited, a company messenger in the Minister’s Office. Union (IPU) and she is involved in a Ireland Limited. providing cloud based IT security He is currently employed as a broad variety of local business and services. He oversaw its sale to a 3. Noel Adamson Delivery Service Manager in Swords/ community development initiatives. global provider of IT services. A Employee Director Malahide Delivery Service Unit, Co. graduate of Trinity College Dublin, he Appointed 1 November 2012 Dublin. An active member of the 15. James Wrynn B.Sc, B.Comm, M.B.A. has just completed an MSc in Strategic Mr Adamson joined the Post Office Communications Workers’ Union, he Director ‑ 1 served on the National Executive for Management and Innovation from Appointed 15 September 2011 in 1981 as a Postman in the Central the Dublin Institute of Technology. Sorting Office in Dublin’s Sheriff two years and is currently Chairman of Mr Wrynn is a former Senior Lecturer in Strategic Management in DIT Street. He has been employed as the Dublin Mail Managers Branch. 11. Martina O’Connell and Head of the Department of a Postperson in Fairview Delivery 7. Paul Henry A.C.A., M.Accounting, Employee Director ‑ 4 Services Unit 3 for the last 20 years. Appointed 1 November 2012 Administrative Studies in DIT’s Faculty B.A. (Bus & Econ) of Business. He served on the Board Throughout his employment he Director ‑ 1 Ms O’Connell joined An Post in 1993 has been an active member of the as an Auxiliary Postperson and is of ESB for more than ten years and Appointed 15 September 2011 during his term of office served as Communications Workers’ Union. He Mr Henry, a Chartered Accountant, now working as a Postal Operative Deputy Chairperson from 1995–2000. is a former chairman of the Union’s has worked with Dublin Airport in Cork’s South City Delivery Office.