Annual Report 2014 GROUP Business activities Communication market: Letters, newspapers, promotional mailings and document solutions in Switzerland and internationally Logistics market: Parcels, express services and logistics solutions within Switzerland and abroad Financial services market: Payments, savings, investments, retirement planning and fi nancing in Switzerland as well as international payment transactions Passenger transport market: Regional, municipal and urban transport, system services, and mobility solutions in Switzerland and in selected countries abroad Our performance in 2014 Key fi gures 2014 Strategic goal Operating income CHF million 8,457 – Operating profi t CHF million 803 700 – 900 Group profi t CHF million 638 – Equity CHF million 5,010 – Degree of internal fi nancing – investments Percent 100 > 100 Addressed letters In million 2,203.1 – Parcels In million 111.8 – PostFinance customer deposits CHF billion 117.2 – PostBus passengers (Switzerland) In million 140.6 – Customer satisfaction Index (scale of 0 – 100) 80 ≥ 78 Headcount Full-time equivalents 44,681 – Employee commitment Index (scale of 0 – 100) 82 > 80 CO2 effi ciency improvement since 2010 Percent 11 10* * Target for 2016 Organization chart as at 1 January 2015 Swiss Post Ltd Chairman of the Board of Directors Peter Hasler Group Audit Martina Zehnder CEO Susanne Ruoff * Communication Corporate Center Development & Innovation Marco Imboden Markus Schumacher Claudia Pletscher Finance Human Resources Pascal Koradi * Yves-André Jeandupeux * Real Estate Information & Communication Technology Franz Huber * Dieter Bambauer * Post CH Ltd PostBus PostMail PostLogistics Swiss Post Post Offi ces PostFinance Ltd Switzerland Ltd Ulrich Dieter Solutions & Sales Hansruedi Daniel Hurni * Bambauer * Jörg Franz Köng Landolf * Vollmer * Huber * * Member of Executive Management MARKETS AND SEGMENTS Communication PostMail offers business customers high- Key fi gures 2014 quality products and tailored solutions Operating income CHF million 2,887 market for letters, newspapers and promotional Operating profi t CHF million 334 mailings, from acceptance right through to delivery. This range is com plemented Addressed letters – business customers In million 1,882 by its electronic services. Unaddressed items In million 1,990 Newspapers In million 1,223 Headcount Full-time equivalents 16,979 Swiss Post Solutions manages paper- Operating income CHF million 659 based business processes with document processing solutions for its business custo- Operating profi t CHF million 12 mers, and provides support for the transi- Area of activity Number of countries 23 tion from the physical to the digital world. Headcount Full-time equivalents 7,466 Post Offi ces & Sales offers products, ser- Operating income CHF million 1,663 vices and tailored advice to private custo- Operating profi t CHF million – 100 mers and SMEs. It has 1,562 post offi ces, 660 postal agencies and 1,278 home de- Letters – private customers In million 321 livery services throughout Switzerland. Parcels – private customers 1 In million 10 Inpayments In million 171 Headcount Full-time equivalents 6,508 Logistics PostLogistics offers business customers Key fi gures 2014 both standardized and customized logis- Operating income CHF million 1,562 market tics solutions for sending parcels, express Operating profi t CHF million 141 items and courier consignments, as well as goods transportation and warehousing Parcels – business customers 1 In million 102 logistics. Express items In million 2 Headcount Full-time equivalents 5,304 Financial PostFinance enables its customers to ma- Key fi gures 2014 nage their own fi nances thanks to sim ple, Operating income CHF million 2,261 services clear and inexpensive products and ser- Operating profi t CHF million 382 market vices for payments, savings, investments, retirement planning and fi nancing. Customer accounts In million 4.75 Infl ow of new money CHF million 2,839 Customer assets CHF billion 117.2 Headcount Full-time equivalents 3,466 Passenger PostBus operates a network of 869 Post- Key fi gures 2014 Bus routes within Switzerland, covering Operating income CHF million 835 transport 11,869 kilometres and 11,368 stops. The Operating profi t CHF million 30 market leading Swiss bus company in regional passenger transport is developing an in- Domestic passengers In million 140.6 creasingly strong presence in cities and Domestic vehicle kilometres In millions of km 110.3 conurbations alike. Vehicles Number 2,817 Headcount Full-time equivalents 2,789 1 111.8 million parcels were sent in total by business and private customers in 2014. The Swiss Post landscape Swiss Post does a lot more than you might think. Did you know that Swiss Post also develops e-shops? Collects return shipments of online or- ders from recipients’ homes? Digitizes the document flow within more and more companies and manages all of the logistics involved in moving goods? Swiss Post is often a professional partner in areas you might not have expected: many Swiss Post services are not quite as visible as the mail carrier or post office counter. Use this map to discover Swiss Post in all its diverse fields of activity. Swiss Post’s business model is market-specific and geared to its customers. To strengthen our market position in an increasingly digital and highly competitive environment and to achieve our strategic goals, we focus on six business development areas: Direct marketing E-post E-commerce Document solutions Online/mobile banking Mobility solutions The folded removable map ”The Swiss Post landscape” is missing here. Discover the new world of Swiss Post at www.swisspost.ch/annualreport 1 Contents 20 Foreword 2 by Peter Hasler Effi cient and Susanne Ruoff and secure With its modular range of eHealth products, Interview 4 Swiss Post offers health- with Susanne Ruoff care professionals a comprehensive service portfolio. Strategy 6 Business performance 11 Group 12 27 Communication market 16 Flexible Logistics market 26 Financial services market 30 and convenient Passenger transport market 34 Swiss Post is continually developing new services to make receiving and Employees 39 returning parcels as easy as possible for its customers. Sustainability 45 and commitment 32 Corporate governance 51 Fast and easy Key fi gures 59 With the new shopping Five-year overview and payment app TWINT, paying by mobile phone has never been easier. 36 Up-to-date and cost-effective With its specially This Annual Report is supple- developed DynPaper, mented by a separate Financial PostBus will in future Report (management report, update departure times corporate governance and annual remotely when timeta- fi nancial statements), a compre- bles change. hensive table of fi gures and a GRI report. Information on reference sources is provided on page 58. 2 Swiss Post Annual Report 2014 Digital or physical – it’s up to the customer. Dear Reader has invested in its e-fi nance platform. With FOREWORD the newly-founded subsidiary TWINT AG, by Peter Hasler, In a mobile and highly networked society, PostFinance is also looking to develop inno- Chairman of the Board of Directors, people are used to accessing information, vative digital payment solutions and bring and Susanne Ruoff, ordering goods and using services whenever them to market quickly. You will fi nd more CEO and wherever they want. This trend is af- information on our current developments fecting Swiss Post too: demand for tradi- and investments elsewhere in this Annual tional postal services is falling. People have Report. been sending fewer and fewer physical con- signments for some years now, and they are Swiss Post is in good shape with solid foun- also increasingly using channels other than dations and is well equipped to meet the the post offi ce for payments. Given our cus- challenges of the future. To ensure that we tomers’ new requirements, our range of ser- can fi nance our investment in the future our- vices needs to be developed in a fl exible selves and provide an excellent universal ser- manner. At the same time, increasing digi- vice, Swiss Post must generate a profi t (EBIT) tization is opening up many new opportuni- of at least 700 million francs each year. This ties in our business units. Guided by this new is the only way to ensure that Swiss Post customer behaviour and our expertise remains competitive, and to secure its long- within communication, logistics, passenger term success. transport and fi nancial services, we are de- veloping system solutions and services at the What we have achieved in the past year has interface between the physical and the digi- only been possible through the confi dence tal – as a one-stop shop. This makes things of our customers. For that we offer our sin- as easy as possible for customers. cere thanks. On behalf of the Board of Di- rectors and the Executive Board, we would In the coming years, we intend to focus on also like to say a big thank you to all of Swiss six business development areas, expanding Post’s managers and employees for this our range of services to meet customer re- good result. We appreciate their enthusiasm quirements, maintaining high levels of qual- and passion for their work and are counting ity and improving effi ciency. Last year, we on their continued commitment in the com- invested 443 million francs in these efforts: ing year. we installed an additional ultra-modern sort- ing system in the existing building at the Härkingen parcel center, ordered 20,500 new scanners for our logistics staff and procured additional sorting machines ca- pable of sorting mail automatically accord- Peter Hasler Susanne Ruoff ing to each mail carrier’s delivery round. To Chairman of the CEO make e-banking even easier, PostFinance Board of Directors 3 We create added value – Swiss Post. reliable, value-enhancing and sustainable. 8,457 m 638 m Operating income was slightly Group profi t rose slightly below the previous year. year-on-year. 80 points 62,983 Customer satisfaction remains high.