unicipalities and cooperatives have already taken 60 post offices under their wing e15.cz, 27 August 2012 You’ve been working at the post office for five years now. How will things change during the next five? E15, 14 May 2012 Mafra and Ringier choose Česká pošta Marketing & Media, 27 August 2012 Česká pošta has hired 2,500 new letter carriers. Starting in October, it is taking up deliv-ery of daily newspapers to subscribers… once again, after a 20-year hiatus ČT24, Business, 5 October 2012 Survey: People trust the post office; advertising there “works” tyden.cz, 23 August 2012 “Five rolls, please… and I’ve got a letter to pick up.” Orlický deník, 25 January 2013 The postal service announces another IT tender – this time valued at CZK 3 billion Lidové noviny, 23 October 2012Both historians and letter carriers are signed under an exhibition of unique historical photographs… decinsky.denik.cz, 23 January 2012 Mediaservis cancels its newspaper delivery service; Česká pošta comes to the rescue ČT24, 2 October 2012 Post office moving into shopping centers Ústecký deník, 5 January 2012 Head of Česká pošta: In the future, the post office will take passengers Fi-nanční noviny, 20 October 2012 Post office promises to deliver parcels anywhere – even in the evening novinky.cz, 3 January 2012 Letter carriers can’t deliver mail and danger lurks for village residents, too denik.cz, 31 March 2012 A flawless eavesdropping device at the Main Post Office! A long-eared bat ecomonitor.cz, 22 March 2012 Česká pošta launches new advertising and, for the firsttime, it’s not animated ihned.cz, 15 November 2012 Česká pošta keeps promise it gave customers in autumn of last year ČRo Sever, 9 January 2012 In Liberec, the Česká Pošta Hockey Cup 2012 showcases the most promising up-and-coming talents in Czech hockey RTM TV, 21 December 2012 Česká pošta to offer assistance to those in debt novinky.cz, 18 October 2012 Electric cars find aplace in city logistics Logistika, 4 September 2012 Česká pošta reports that the world’s automobiles are in high demand at post offices Parlamentní listy, 3 November 2012 The post office will cancel stamps using an Olympic-themed hand stamp Finanční noviny, 17 August 2012 On-line shopping abroad: customs duty and VAT, and when you’ll pay the post office a CZK 96 surcharge Lupa.cz,16 November 2012 Complete liberalization of the Czech postal market. Should we be scared? parlamentnilisty.cz, 20 November 2012 Customers prefer scheduling flexibility Logistika, 20 November 2012 Česká pošta launches e-market parlamentnilisty.cz, 6 November 2012 Česká pošta raises its public profile ahead of postal market opening e15.cz, 15 November 2012 Stamp christening arare event chrudimskenoviny.cz, 4 November 2012 Česká pošta issued its first film stamp with Four-leaf Clover tyden.cz, 13 November 2012 No more waiting, post office promises Mostkovice Prostějovský deník, 23 November 2012 Christmas windfall with Česká pošta, or “30 days of plenty” parlamentnilisty.cz, 13 November 2012 Jarohněvice residents don’t mind post office closing; lettercarriers are enough for them denik.cz, 1 November 2012 Four-leaf Clover in the services of the post office ČT24, 13 November 2012 The postal service wants government budget funds for information technology Hospodářské noviny, 9 November 2012 Interview with Ivo Mravinac Radiožurnál, 21 December 2012 Polish parcel machines to compete with Česká pošta branches Hospodářskénoviny, 21 December 2012 DINO yields good results; Česká pošta’s new service gets debtors’ attention parlamentnilisty.cz, 29 October 2012 Most beautiful postage stamp in the world is from the Czech Republic parlamentnilisty.cz, 12 October 2012 Česká pošta defuses newspaper distribution crisis Jihlavské listy, 5 October 2012 Česká pošta posts good half-year financial figures Dopravnínoviny, 27 September 2012 In the liberalized market, anyone can become a postal services operator Dopravní noviny, 27 September 2012 Postal maneuvers ČT 1, 25 August 2012 Česká pošta’s losses to be covered by its competition. Will that improve quality of postal services? podnikatel.cz, 15 August 2012 Česká pošta as a media outlet: Do people like going to the post office? Marketing &Media, 30 July 2012 Village post offices endangered – again denik.cz, 16 December 2012 Letters need not be delivered by letter carriers alone Pražský deník, 19 December 2012 Wave of the future: post office and town hall in one Jihlavské listy, 11 December 2012 Postal Savings Bank customers to have comfort and privacy at the post office, too parlamentnilisty.cz, 30 December 2012 Om-budsman tried, but government didn’t back down: unemployed still have to register at the post office tyden.cz, 11 December 2012 Three thousand temp workers to help deliver Christmas parcels Jablonecký deník, 3 December 2012 Postal service’s competitors afraid of its prices Marketing & Media, 10 December 2012 Opening of postal market can cut companies’ costs by up to one fifthČT24, 17 December 2012 Czechs discover Slovak and German e-shops. On the other hand, number of parcels from USA is falling zpravy.ihned.cz, 7 December 2012 Christmas parcel? Get it in the mail no later than 18 December ČT24, 15 December 2012 Post offices in West Bohemia undergoing modernization; people must wait in long lines plzen.idnes.cz, 19 December 2012 Post officescreate special teller windows for Postal Savings Bank tyden.cz, 16 December 2012 Pre-Christmas Europe seized with parcel mania ČT24, 10 December 2012 Elections 2013 – Jan Fischer at every post office, statistically speaking ceskamedia.cz, 6 December 2012 160,000 parcels a day not a record Pražský deník, 19 December 2012 Motorway stickers available at post offices Berounskýdeník, 18 December 2012 For postal service, Christmas begins one month early parlamentnilisty.cz, 17 November 2012 I’d like to get married. One of this year’s wishes on Baby Jesus stamp vary.idnes.cz, 27 December 2012 Next year, Česká pošta plans to buy 950,000 vehicles – that’s 200,000 more than this year auto.cz, 23 October 2012 Postal depot in Staré Město likely to bring new jobsSlovácký deník, 14 August 2012 Christmas fever running high at post offices as extraordinarily high number of parcels sent idnes.cz, 5 November 2012 Postal service to completely revamp its logistics network E15, 13 March 2012 Postal service increases capital spending ihned.cz, 20 March 2012 Parcels drive Česká pošta 59% profit growth e15.cz, 29 March 2012 Debt resolution in newclothes! Česká pošta becomes creditors’ ally penize.cz, 17 July 2012 Česká pošta offers help to people in debt novinky.cz, 18 October 2012 Česká pošta: debt collection project a success kurzy.cz, 18 October 2012 Villages look to save their post offices from closure Klatovský deník, 28 July 2012 Czech application for data mailboxes on Windows Phone palmserver.cz, 18 September 2012Postal service now lets you track letters by smartphone aktualne.centrum.cz, 9 February 2012 Postal service preparing to take on State IT administrator role E15, 17 August 2012 Postal service wants its share of government IT money Hospodářské noviny, 9 November 2012 Česká pošta rescues newspaper distribution Jihlavské listy, 5 October 2012 Česká pošta hires 2,500 new letter carri-ers ČT24, 5 October 2012 Kind customers predominate, says post office teller Plzeňský deník, 4 August 2012 U.S. economists tested the world’s posts, and the Czech one excelled idnes.cz, 9 August 2012 Soak off carefully. Stamps are here to stay brnensky.denik.cz, 2 July 2012 Postal service allowed political advertisements in its branches, Fischer featured idnes.cz, 16 October 2012 HRManagers’ prize for best HR project of 2012 Hospodářské noviny, 18 October 2012 Jiří Peterka: Data messages to cost “just” CZK 10. Starting in January tech.ihned.cz, 23 October 2012 We take the agreement between the Union of Towns and Municipalities and Česká pošta seriously parlamentnilisty.cz, 26 November 2012 Three companies win Česká pošta CZK 0.5 billion IT tender ČT24, 1October 2012 Both historians and letter carriers are signed under an exhibition of unique historical photographs decinsky.denik.cz, 23 January 2012 Dogs no longer bark at mail carrier Náchodský deník, 9 October 2012 In addition to track-and-trace, the application can automatically determine the smartphone’s location and provide directions to the nearest post office aktualne.centrum.cz, 9February 2012 Head of Česká pošta Petr Zatloukal predicts that traditional postal services will comprise just one third of his business – the rest will be financial and IT services Mladá fronta Dnes, 7 May 2012 New service should minimize number of cases when people find themselves in foreclosure proceedings over just a couple of crowns Prima family, evening news, 19 October 2012 Newbranches to bring customer comfort. They’ll be open all weekend long! Ústecký deník, 5 January 2012 Municipalities and cooperatives have already taken 60 post offices under their wing e15.cz, 27 August 2012 Postal service building a parcel and letter sorting facility in Kroměříž kromerizsky.denik.cz, 6 December 2012 Postal service to build parking lot by depot ceskolipsky.denik.cz, 21 De-cember 2012 Česká pošta begins selling one-year motorway stickers for 2013 parlamentnilisty.cz, 28 November 2012 Parcel revolution was ethical logistika.ihned.cz, 20 March 2012 In small towns, postal services could be offered by town halls and/or chain stores ČRo - Pilsen, 13 July 2012 Test of postal services: who delivered egg without breaking it aktualne.centrum.cz, 19 March 2012Mail carrier heard call for help: senior citizen had been lying on the floor for nearly a week idnes.cz, 23 March 2012 See post office in Rochlice go up Liberecký deník, 2 January 2012 To the post office on Sunday ČRo - Sever, 7 January 2012 People will be able to pick up their parcels from self-service boxes, even at 2:00 a.m. Český rozhlas Ostrava, 9 February 2012 Municipalities and cooper-atives have already taken 60 post offices under their wing e15.cz, 27 August 2012 You’ve been working at the post office for five years now. How will things change during the next five? E15, 14 May 2012 Mafra and Ringier choose Česká pošta Marketing & Media, 27 August 2012 Česká pošta has hired 2,500 new letter carriers. Starting in October, it is taking up delivery of daily newspapers tosubscribers… once again, after a 20-year hiatus ČT24, Business, 5 October 2012 Survey: People trust the post office; advertising there “works” tyden.cz, 23 August 2012 “Five rolls, please… and I’ve got a letter to pick up.” Orlický deník, 25 January 2013 The postal service announces another IT tender – this time valued at CZK 3 billion Lidové noviny, 23 October 2012 Both historians and lettercarriers are signed under an exhibition of unique historical photographs… decinsky.denik.cz, 23 January 2012 Mediaservis cancels its newspaper delivery service; Česká pošta comes to the rescue ČT24, 2 October 2012 Post office moving into shopping centers Ústecký deník, 5 January 2012 Head of Česká pošta: In the future, the post office will take passengers Finanční noviny, 20 October2012 Post office promises to deliver parcels anywhere – even in the evening novinky.cz, 3 January 2012 Letter carriers can’t deliver mail and danger lurks for village residents, too denik.cz, 31 March 2012 A flawless eavesdropping device at the Main Post Office! A long-eared bat ecomonitor.cz, 22 March 2012 Česká pošta launches new advertising and, for the first time, it’s not animatedihned.cz, 15 November 2012 Česká pošta keeps promise it gave customers in autumn of last year ČRo Sever, 9 January 2012 In Liberec, the Česká Pošta Hockey Cup 2012 showcases the most promising up-and-coming talents in Czech hockey RTM TV, 21 December 2012 Česká pošta to offer assistance to those in debt novinky.cz, 18 October 2012 Electric cars find a place in city logisticsLogistika, 4 September 2012 Česká pošta reports that the world’s automobiles are in high demand at post offices Parlamentní listy, 3 November 2012 The post office will cancel stamps using an Olympic-themed hand stamp Finanční noviny, 17 August 2012 On-line shopping abroad: customs duty and VAT, and when you’ll pay the post office a CZK 96 surcharge Lupa.cz, 16 November 2012Complete liberalization of the Czech postal market. Should we be scared? parlamentnilisty.cz, 20 November 2012 Customers prefer scheduling flexibility Logistika, 20 November 2012 Česká pošta launches e-market parlamentnilisty.cz, 6 November 2012 Česká pošta raises its public profile ahead of postal market opening e15.cz, 15 November 2012 Stamp christening a rare eventchrudimskenoviny.cz, 4 November 2012 Česká pošta issued its first film stamp with Four-leaf Clover tyden.cz, 13 November 2012 No more waiting, post office promises Mostkovice Prostějovský deník, 23 November 2012 Christmas windfall with Česká pošta, or “30 days of plenty” parlamentnilisty.cz, 13 November 2012 Jarohněvice residents don’t mind post office closing; letter carriers areenough for them denik.cz, 1 November 2012 Four-leaf Clover in the services of the post office ČT24, 13 November 2012 The postal service wants government budget funds for information technology Hospodářské noviny, 9 November 2012 Interview with Ivo Mravinac Radiožurnál, 21 December 2012 Polish parcel machines to compete with Česká pošta branches Hospodářské noviny, 21 De-cember 2012 DINO yields good results; Česká pošta’s new service gets debtors’ attention parlamentnilisty.cz, 29 October 2012 Most beautiful postage stamp in the world is from the Czech Republic parlamentnilisty.cz, 12 October 2012 Česká pošta defuses newspaper distribution crisis Jihlavské listy, 5 October 2012 Česká pošta posts good half-year financial figures Dopravní noviny, 27September 2012 In the liberalized market, anyone can become a postal services operator Dopravní noviny, 27 September 2012 Postal maneuvers ČT 1, 25 August 2012 Česká pošta’s losses to be covered by its competition. Will that improve quality of postal services? podnikatel.cz, 15 August 2012 Česká pošta as a media outlet: Do people like going to the post office? Marketing & Media, 30July 2012 Village post offices endangered – again denik.cz, 16 December 2012 Letters need not be delivered by letter carriers alone Pražský deník, 19 December 2012 Wave of the future: post office and town hall in one Jihlavské listy, 11 December 2012 Postal Savings Bank customers to have comfort and privacy at the post office, too parlamentnilisty.cz, 30 December 2012 Ombudsmantried, but government didn’t back down: unemployed still have to register at the post office tyden.cz, 11 December 2012 Three thousand temp workers to help deliver Christmas parcels Jablonecký deník, 3 December 2012 Postal service’s competitors afraid of its prices Marketing & Media, 10 December 2012 Opening of postal market can cut companies’ costs by up to one fifth ČT24, 17 De-cember 2012 Czechs discover Slovak and German e-shops. On the other hand, number of parcels from USA is falling zpravy.ihned.cz, 7 December 2012 Christmas parcel? Get it in the mail no later than 18 December ČT24, 15 December 2012 Post offices in West Bohemia undergoing modernization; people must wait in long lines plzen.idnes.cz, 19 December 2012 Post offices create specialteller windows for Postal Savings Bank tyden.cz, 16 December 2012 Pre-Christmas Europe seized with parcel mania ČT24, 10 December 2012 Elections 2013 – Jan Fischer at every post office, statistically speaking ceskamedia.cz, 6 December 2012 160,000 parcels a day not a record Pražský deník, 19 December 2012 Motorway stickers available at post offices Berounský deník, 18 Decem-ber 2012 For postal service, Christmas begins one month early parlamentnilisty.cz, 17 November 2012 I’d like to get married. One of this year’s wishes on Baby Jesus stamp vary.idnes.cz, 27 December 2012 Next year, Česká pošta plans to buy 950,000 vehicles – that’s 200,000 more than this year auto.cz, 23 October 2012 Postal depot in Staré Město likely to bring new jobs Slovácký deník,14 August 2012 Christmas fever running high at post offices as extraordinarily high number of parcels sent idnes.cz, 5 November 2012 Postal service to completely revamp its logistics network E15, 13 March 2012 Postal service increases capital spending ihned.cz, 20 March 2012 Parcels drive Česká pošta 59% profit growth e15.cz, 29 March 2012 Debt resolution in new clothes! Českápošta becomes creditors’ ally penize.cz, 17 July 2012 Česká pošta offers help to people in debt novinky.cz, 18 October 2012 Česká pošta: debt collection project a success kurzy.cz, 18 October 2012 Villages look to save their post offices from closure Klatovský deník, 28 July 2012 Czech application for data mailboxes on Windows Phone palmserver.cz, 18 September 2012 Postal service nowlets you track letters by smartphone aktualne.centrum.cz, 9 February 2012 Postal service preparing to take on State IT administrator role E15, 17 August 2012 Postal service wants its share of government IT money Hospodářské noviny, 9 November 2012 Česká pošta rescues newspaper distribution Jihlavské listy, 5 October 2012 Česká pošta hires 2,500 new letter carriers ČT24, 5 October2012 Kind customers predominate, says post office teller Plzeňský deník, 4 August 2012 U.S. economists tested the world’s posts, and the Czech one excelled idnes.cz, 9 August 2012 Soak off carefully. Stamps are here to stay brnensky.denik.cz, 2 July 2012 Postal service allowed political advertisements in its branches, Fischer featured idnes.cz, 16 October 2012 HR Managers’ prize forbest HR project of 2012 Hospodářské noviny, 18 October 2012 Jiří Peterka: Data messages to cost “just” CZK 10. Starting in January tech.ihned.cz, 23 October 2012 We take the agreement between the Union of Towns and Municipalities and Česká pošta seriously parlamentnilisty.cz, 26 November 2012 Three companies win Česká pošta CZK 0.5 billion IT tender ČT24, 1 October 2012 Bothhistorians and letter carriers are signed under an exhibition of unique historical photographs decinsky.denik.cz, 23 January 2012 Dogs no longer bark at mail carrier Náchodský deník, 9 October 2012 In addition to track-and-trace, the application can automatically determine the smartphone’s location and provide directions to the nearest post office aktualne.centrum.cz, 9 February 2012Head of Česká pošta Petr Zatloukal predicts that traditional postal services will comprise just one third of his business – the rest will be financial and IT services Mladá fronta Dnes, 7 May 2012 New service should minimize number of cases when people find themselves in foreclosure proceedings over just a couple of crowns Prima family, evening news, 19 October 2012 New branches tobring customer comfort. They’ll be open all weekend long! Ústecký deník, 5 January 2012 Municipalities and cooperatives have already taken 60 post offices under their wing e15.cz, 27 August 2012 Postal service building a parcel and letter sorting facility in Kroměříž kromerizsky.denik.cz, 6 December 2012 Postal service to build parking lot by depot ceskolipsky.denik.cz, 21 December 2012Česká pošta begins selling one-year motorway stickers for 2013 parlamentnilisty.cz, 28 November 2012 Parcel revolution was ethical logistika.ihned.cz, 20 March 2012 In small towns, postal services could be offered by town halls and/or chain stores ČRo - Pilsen, 13 July 2012 Test of postal services: who delivered egg without breaking it aktualne.centrum.cz, 19 March 2012 Mail carrierheard call for help: senior citizen had been lying on the floor for nearly a week idnes.cz, 23 March 2012 See post office in Rochlice go up Liberecký deník, 2 January 2012 To the post office on Sunday ČRo - Sever, 7 January 2012 People will be able to pick up their parcels from self-service boxes, even at 2:00 a.m. Český rozhlas Ostrava, 9 February 2012 Municipalities and cooperatives havealready taken 60 post offices under their wing e15.cz, 27 August 2012 You’ve been working at the post office for five years now. How will things change during the next five? E15, 14 May 2012 Mafra and Ringier choose Česká pošta Marketing & Media, 27 August 2012 Česká pošta has hired 2,500 new letter carriers. Starting in October, it is taking up delivery of daily newspapers to sub-scribers… once again, after a 20-year hiatus ČT24, Business, 5 October 2012 Survey: People trust the post office; advertising there “works” tyden.cz, 23 August 2012 “Five rolls, please… and I’ve got a letter to pick up.” Orlický deník, 25 January 2013 The postal service announces another IT tender – this time valued at CZK 3 billion Lidové noviny, 23 October 2012 Both historians and lettercarriers are signed under an exhibition of unique historical photographs… decinsky.denik.cz, 23 January 2012 Mediaservis cancels its newspaper delivery service; Česká pošta comes to the rescue ČT24, 2 October 2012 Post office moving into shopping centers Ústecký deník, 5 January 2012 Head of Česká pošta: In the future, the post office will take passengers Finanční noviny, 20 October2012 Post office promises to deliver parcels anywhere – even in the evening novinky.cz, 3 January 2012 Letter carriers can’t deliver mail and danger lurks for village residents, too denik.cz, 31 March 2012 A flawless eavesdropping device at the Main Post Office! A long-eared bat ecomonitor.cz, 22 March 2012 Česká pošta launches new advertising and, for the first time, it’s not animatedihned.cz, 15 November 2012 Česká pošta keeps promise it gave customers in autumn of last year ČRo Sever, 9 January 2012 In Liberec, the Česká Pošta Hockey Cup 2012 showcases the most promising up-and-coming talents in Czech hockey RTM TV, 21 December 2012 Česká pošta to offer assistance to those in debt novinky.cz, 18 October 2012 Electric cars find a place in city logisticsLogistika, 4 September 2012 Česká pošta reports that the world’s automobiles are in high demand at post offices Parlamentní listy, 3 November 2012 The post office will cancel stamps using an Olympic-themed hand stamp Finanční noviny, 17 August 2012 On-line shopping abroad: customs duty and VAT, and when you’ll pay the post office a CZK 96 surcharge Lupa.cz, 16 November 2012Complete liberalization of the Czech postal market. Should we be scared? parlamentnilisty.cz, 20 November 2012 Customers prefer scheduling flexibility Logistika, 20 November 2012 Česká pošta launches e-market parlamentnilisty.cz, 6 November 2012 Česká pošta raises its public profile ahead of postal market opening e15.cz, 15 November 2012 Stamp christening a rare eventchrudimskenoviny.cz, 4 November 2012 Česká pošta issued its first film stamp with Four-leaf Clover tyden.cz, 13 November 2012 No more waiting, post office promises Mostkovice Prostějovský deník, 23 November 2012 Christmas windfall with Česká pošta, or “30 days of plenty” parlamentnilisty.cz, 13 November 2012 Jarohněvice residents don’t mind post office closing; letter carriers areenough for them denik.cz, 1 November 2012 Four-leaf Clover in the services of the post office ČT24, 13 November 2012 The postal service wants government budget funds for information technology Hospodářské noviny, 9 November 2012 Interview with Ivo Mravinac Radiožurnál, 21 December 2012 Polish parcel machines to compete with Česká pošta branches Hospodářské noviny, 21 De-cember 2012 DINO yields good results; Česká pošta’s new service gets debtors’ attention parlamentnilisty.cz, 29 October 2012 Most beautiful postage stamp in the world is from the Czech Republic parlamentnilisty.cz, 12 October 2012 Česká pošta defuses newspaper distribution crisis Jihlavské listy, 5 October 2012 Česká pošta posts good half-year financial figures Dopravní noviny, 27September 2012 In the liberalized market, anyone can become a postal services operator Dopravní noviny, 27 September 2012 Postal maneuvers ČT 1, 25 August 2012 Česká pošta’s losses to be covered by its competition. Will that improve quality of postal services? podnikatel.cz, 15 August 2012 Česká pošta as a media outlet: Do people like going to the post office? Marketing & Media, 30July 2012 Village post offices endangered – again denik.cz, 16 December 2012 Letters need not be delivered by letter carriers alone Pražský deník, 19 December 2012 Wave of the future: post office and town hall in one Jihlavské listy, 11 December 2012 Postal Savings Bank customers to have comfort and privacy at the post office, too parlamentnilisty.cz, 30 December 2012 Ombudsmantried, but government didn’t back down: unemployed still have to register at the post office tyden.cz, 11 December 2012 Three thousand temp workers to help deliver Christmas parcels Jablonecký deník, 3 December 2012 Postal service’s competitors afraid of its prices Marketing & Media, 10 December 2012 Opening of postal market can cut companies’ costs by up to one fifth ČT24, 17 De-cember 2012 Czechs discover Slovak and German e-shops. On the other hand, number of parcels from USA is falling zpravy.ihned.cz, 7 December 2012 Christmas parcel? Get it in the mail no later than 18 December ČT24, 15 December 2012 Post offices in West Bohemia undergoing modernization; people must wait in long lines plzen.idnes.cz, 19 December 2012 Post offices create specialteller windows for Postal Savings Bank tyden.cz, 16 December 2012 Pre-Christmas Europe seized with parcel mania ČT24, 10 December 2012 Elections 2013 – Jan Fischer at every post office, statistically speaking ceskamedia.cz, 6 December 2012 160,000 parcels a day not a record Pražský deník, 19 December 2012 Motorway stickers available at post offices Berounský deník, 18 Decem-ber 2012 For postal service, Christmas begins one month early parlamentnilisty.cz, 17 November 2012 I’d like to get married. One of this year’s wishes on Baby Jesus stamp vary.idnes.cz, 27 December 2012 Next year, Česká pošta plans to buy 950,000 vehicles – that’s 200,000 more than this year auto.cz, 23 October 2012 Postal depot in Staré Město likely to bring new jobs Slovácký deník,14 August 2012 Christmas fever running high at post offices as extraordinarily high number of parcels sent idnes.cz, 5 November 2012 Postal service to completely revamp its logistics network E15, 13 March 2012 Postal service increases capital spending ihned.cz, 20 March 2012 Parcels drive Česká pošta 59% profit growth e15.cz, 29 March 2012 Debt resolution in new clothes! Českápošta becomes creditors’ ally penize.cz, 17 July 2012 Česká pošta offers help to people in debt novinky.cz, 18 October 2012 Česká pošta: debt collection project a success kurzy.cz, 18 October 2012 Villages look to save their post offices from closure Klatovský deník, 28 July 2012 Czech application for data mailboxes on Windows Phone palmserver.cz, 18 September 2012 Postal service nowlets you track letters by smartphone aktualne.centrum.cz, 9 February 2012 Postal service preparing to take on State IT administrator role E15, 17 August 2012 Postal service wants its share of government IT money Hospodářské noviny, 9 November 2012 Česká pošta rescues newspaper distribution Jihlavské listy, 5 October 2012 Česká pošta hires 2,500 new letter carriers ČT24, 5 October2012 Kind customers predominate, says post office teller Plzeňský deník, 4 August 2012 U.S. economists tested the world’s posts, and the Czech one excelled idnes.cz, 9 August 2012 Soak off carefully. Stamps are here to stay brnensky.denik.cz, 2 July 2012 Postal service allowed political advertisements in its branches, Fischer featured idnes.cz, 16 October 2012 HR Managers’ prize forbest HR project of 2012 Hospodářské noviny, 18 October 2012 Jiří Peterka: Data messages to cost “just” CZK 10. Starting in January tech.ihned.cz, 23 October 2012 We take the agreement between the Union of Towns and Municipalities and Česká pošta seriously parlamentnilisty.cz, 26 November 2012 Three companies win Česká pošta CZK 0.5 billion IT tender ČT24, 1 October 2012 Bothhistorians and letter carriers are signed under an exhibition of unique historical photographs decinsky.denik.cz, 23 January 2012 Dogs no longer bark at mail carrier Náchodský deník, 9 October 2012 In addition to track-and-trace, the application can automatically determine the smartphone’s location and provide directions to the nearest post office aktualne.centrum.cz, 9 February 2012Head of Česká pošta Petr Zatloukal predicts that traditional postal services will comprise just one third of his business – the rest will be financial and IT services Mladá fronta Dnes, 7 May 2012 New service should minimize number of cases when people find themselves in foreclosure proceedings over just a couple of crowns Prima family, evening news, 19 October 2012 New branches tobring customer comfort. They’ll be open all weekend long! Ústecký deník, 5 January 2012 Municipalities and cooperatives have already taken 60 post offices under their wing e15.cz, 27 August 2012 Postal service building a parcel and letter sorting facility in Kroměříž kromerizsky.denik.cz, 6 December 2012 Postal service to build parking lot by depot ceskolipsky.denik.cz, 21 December 2012

Annual Report 2012

Česká pošta, s.p.

Annu

al R

epor

t 2

012

Čes

ká p

ošta

, s.p

.

ANNUALREPORT2012

ČESKÁ POŠTA BEARER OF GOOD NEWS

In 2012, while the media was expectingthe end of the world, Česká poštainvested in the future and enjoyedunprecedented growth. While thepossible end of the ages became a mediablockbuster, today only a few dozenarticles can be found on this topic whilethe number of reports published last yearon Česká pošta’s joys and sorrows runsinto the thousands. The post office is anintegral part of people’s lives – both of itsemployees and the general public. Thetwo worlds meet and interact every day,through the media. This is demonstratedin the following pages, which arededicated to all lovers of life and goodnews, which comes in many forms –including annual reports.

We wish you pleasant reading!

3

4

Municipalit

ies and coopera

tives have

already t

aken 60 post offi

ces under t

heir wing

e15

.cz, 2

7 Augu

st 20

12

...The original plan to shutter up to 1,500 village post officesin the Czech Republic has been put on hold. In about 30 municipalities, however, postal services are being provided by local councils. ... “We already have a municipalpub and a municipal store – now we’ll have a municipal postoffice as well...”(Luboš Krátký, Mayor of Dlouhé Brtnice)

Česká televize,

Regional news program,

27 November 2012

5

Director General’s Statement 6

Report of the Supervisory Board 8Terms of office of current members of the Supervisory Board 11Changes in the Supervisory Board in 2012 11The Company’s Members of the Supervisory Board as at 31 December 2012 11

Profile 12Mission and strategic goals 12Legal status of the Company 14Management and supervision of the Company 14Statutory body and Management Board of the Company 15Organisational structure as at 31 December 2012 16Regulatory framework of postal services 18Subsequent events 19

Activity Report 22Economic position 22Trends in key economic indicators 23Investments and technical development 27Sales activities 31Customers 31Services on behalf of alliance partners 33Postal services 34Structure of the services provided 34Traditional postal services 36Money services 37Quality of service 40Postal network 42Electronic services 42eGovernment services 43ICT 46International operations and relations 47Marketing communication 48Human resources 49Security 54Internal audit 55Environmental protection 59Philately 60Postal Museum 62Postal ombudsman 65

Branch Enterprise 66

Financial Part 68

Contact Details 108

Abbreviations Used 109

TABLEOFCONTENTS

TABLE OFCONTENTS

Annual reports are read from theend. The financial statements giveimportant information about theCompany’s operations as well asthe essential numbers. Quitespecifically: In 2012, Czech Postmaintained revenues of overtwenty billion and achieveda positive result of CZK 306million. This is the most importantmessage Czech Post sends to theworld. Let me briefly explain whyI consider last year exceptionallysuccessful and, in some ways,crucial for the Company’s furtherdevelopment.

Traditional postal services arelosing their importance. This is aglobal trend, just look around you.All national postal operators inEurope are facing a decline inrevenues mainly from letters.There have been year-on-yeardeclines in this segment in therange of 5–10% for the last coupleof years; and speaking of figures,CZK 470 million disappeared fromCzech Post revenue last year. Wemanaged to compensate for thisdecline, even though costs werereduced only slightly.

6

ANNUALREPORT2012

DIRECTORGENERAL’SSTATEMENT

We are looking for new ways or –more precisely – new sources ofrevenue. Czech Post has alwaysbeen financially independent fromthe state, and so it should remainin the future. It is a difficult pathas the Company has beenoperating on a fully liberalisedpostal market this year. While thepostal services need to focus onquality and a satisfactory portfoliooffered to customers, otherservices must demonstrateinvention, a certain ferocity andsubsequently reliability.

The Post has been a support forCzech State. And it has never beenany different. With the advent ofelectronic communications, theCompany is still not only a trustedpartner in the delivery ofdocuments but also plays a keyrole as a provider of data boxes. Aspart of Czech Post developmentstrategy a strong emphasis is puton providing IT services. Mainly tosatisfy the needs of the Statea separate branch that canresponsibly provide tailored ITservices to the Company ownerwas established in 2012. Directsupport of the development ofeGovernment is therefore a matterof course to Czech Post.

The year 2012 was successful forCzech Post, but very challengingat the same time. It was necessaryto complete the preparation of thefull liberalisation of the postalmarket in all areas. We have

increased the performance in thedelivery of parcels, and havebecome the market leader; thelogistics network has undergonea fundamental restructuring; weupgraded our technology base;thanks to gradual establishmentof alternative delivery networks;we have started to relieve theburden on our delivery officerswho can now devote themselves toprofessional work and businessactivity. In this respect, we reflectthe European trend.

It is worth bearing in mind thatmany postal operators in Europe,who are not directly subsidized bythe state, are searching for waysto survive in the new conditions.This is, however, not the case forCzech Post, which found its ownway. It does not have the size ofDeutsche Post or the Finnish Itellabut, as far as social desirability,importance and sound economicbase are concerned, it is on thesame level. Market liberalisationhas set new rules and, each year,Czech Post will have to defend itsposition. It would not be possiblewithout the hard work of staff andthe support of our trade partners.For such a difficult and challengingyear that 2012 proved to be, I wouldlike to thank all those who in timesof economic recession managedto push Czech Post forward to not only prepare it for the fullliberalisation of the postal marketbut also for further developmentin the upcoming years.

Petr ZatloukalDirector General of Česká pošta, s.p.

You’ve been working forthe Post for five years now.How will things changeduring the next five?

I don’t know what the futureholds, but I want the postal service to stand on three pillars:conventional services, logistics,and IT services. One thing is certain: traditional letterdelivery services will continue todecline. Therefore, we willsearch for alternative duties forour mail carriers… This year Iwant to meet the targets set forus by our founder. That’s thenumber-one goal. And we planto finance everything – exceptfor possible acquisitions – out ofour own funds, not from loans.We have put together a five-year cash flow plan for thispurpose. In terms of revenues, Idefinitely don’t plan to fall intothe red.

excerpt from interview for E15,

14 May 2012

7

DIRECTORGENERAL’SSTATEMENT

The Supervisory Board of CzechPost met at eleven ordinarymeetings and one extraordinarymeeting during 2012. It dealt withimportant issues at regularmeetings of committees forfinance and audit, Companystrategy, human resources andsafety matters. Throughout itsactivity, the Supervisory Board actin accordance with enterprise actno. 77/1997 Coll., on state-ownedenterprises as amended, the deedof foundation and the statutes ofthe state-owned enterprise Czech Post.

Generally speaking, eachSupervisory Board meeting wascharacterized by a constructiveapproach to solve a number ofissues of individual agendas,special attention was paid toconcrete steps towards therealisation of key documents –Strategy of Czech Post for 2012and the Strategy of Czech Post inthe medium term up to 2016approved by the Company’sFounder, the Ministry of Interior.

Great attention is therefore paid tofinal preparations for theliberalisation of the postal market

in particular, which from theoperational side is mainlycharacterised by transformation ofthe logistics network,modernisation of the facilities andlast but not least, another fleetrenewal. In the business field itthen carefully monitored allchanges leading to bettersatisfaction of retail customersand corporate sectors, with greaton improving services forgovernment agencies.

Some regular themes of theSupervisory Board meetings werethose related to the utilisation of

8

ANNUALREPORT2012

REPORT OF THESUPERVISORY

BOARD

the Company’s human resourcesand supervision of compliancewith the collective agreement. Dueattention was paid to maintainingtransparent and positiverelationship with the Founder ofthe Company, the postal marketregulator and other governmentbodies that are relevant to thework of Czech Post.

Continuously, the SupervisoryBoard dealt with monitoring andevaluation of the economic resultsof the Company and theircompliance with the approvedfinancial plan. I am pleased that

today it can be said that althoughthe Company went throughelaborate preparation forliberalisation during continuingeconomic recession, it managedto act competitively achievingexcellent financial results.

The Supervisory Board closelyreviewed the financial statements asat 31 December 2012, prepared inaccordance with Czech accountingstandards, acknowledged theauditor’s report issued byPricewaterhouseCoopers Audit,s.r.o., which is “unqualified”,discussed the annual report of

Czech Post for 2012 andrecommended that the Founderapproves the financial statementsand the annual report. Accordingto the proposal submitted bymanagement of the Company adecision on the allocation of theprofit for the year 2012 was alsorecommended to the Founder.

Jiří MaceškaChairman of the SupervisoryBoard of Česká pošta, s.p.

9

REPORTOFTHESUPERVISORYBOARD

10

In Europe, the Bulgarians can afford tosend the least number of letters out oftheir average monthly wage. …Whatcountry has the most expensive stamps? …The most expensive postal services in theworld are in Norway. A stamp for a letterthere costs the equivalent of CZK 31.50.Post offices charge a lot elsewhere inScandinavia, too, according to a BBCranking… After Norway, the highest pricesin Europe are in Denmark, Switzerland,Finland, and the United Kingdom. The leastexpensive countries, in terms of sendingletters, are Bangladesh, Thailand,Pakistan, and Vietnam. In the CzechRepublic, a domestic letter costs CZK 10. In absolute terms, the country has thelowest cost of sending a letter within Europe.

aktualne.cz, 10 April 2012

11

Terms of office of current members of the Supervisory Board (“SB”)

Extension of the term of office to six years (subject

to the new Rules of Procedure of the Supervisory Board

of 29 August 2009) Name and surname Date of appointment/ Expiry of the term Expiry of the term

election of office – original of office – currentPetr Kužel 1 November 2006 1 November 2011 1 November 2012Jiří Řehola 1 September 2008 – 1 September 2014Jiří Maceška 1July 2009 – 1 July 2015Karel Koukal 23 September 2009 – 23 September 2015Ivana Musilová 23 September 2009 – 23 September 2015Štěpán Grochal 23 September 2009 – 23 September 2015Soňa Lavičková 23 September 2009 – 23 September 2015Jan Mládek 20 October 2009 – 20 October 2015Vladimír Budinský 25 November 2010 5 November 2010 25 November 2016Miroslava Oliveriusová 3 May 2011 – 3 May 2017Lubomír Krejsa 25 January 2012 – 25 January 2018Jan Sixta 12 March 2012 – 12 March 2018

Changes in the Supervisory Board in 2012

25 January 2012 Radek Šmerda removed from the post of member of SB25 January 2012 Lubomír Krejsa appointed to the post of member of SB – the SB has 12 members.9 March 2012 Jaroslav Hruška removed from the post of member of SB12 March 2012 Jan Sixta appointed to the post of member of SB – the SB has 12 members1 November 2012 Mandate of member Petr Kužel expired – the SB has 11 members

The Company’s Members of the Supervisory Board as at 31 December 2012

PositionJiří Maceška ChairmanKarel Koukal Vice-ChairmanJan Mládek Vice-ChairmanJan Sixta Vice-ChairmanVladimír Budinský MemberŠtěpán Grochal MemberLubomír Krejsa MemberSoňa Lavičková MemberIvana Musilová MemberMiroslava Oliveriusová MemberJiří Řehola Member

REPORTOFTHESUPERVISORYBOARD

The mission of Czech Post is to bea trustworthy provider of quality services inthe area of mediating information,payments and goods via both traditionaland electronic means.

Czech Post (“the Company”, “thePost”) ensures the provision ofuniversal postal services andseeks to make them as effectiveas possible. Its current activitiesare determined by the four keytrends affecting the market andcompetitive environment, i.e. newtechnology, changes in ways ofcommunicating due to boominginternet services, changingcustomer needs and theliberalisation of postal services.Czech Post intends to continue towork closely with the governmentthrough both its dense network of

12

ANNUALREPORT2012

PROFILE

Mission and strategic goals

branches as well as newchannels. The Company intendsto cooperate closely with thestate administration via both itsdense network of post offices andnew channels. It has thereforebeen appointed as administratorof a unique system of datamailboxes and the Czech InteriorMinistry’s data networks. TheCompany considers improvementof its image in the eyes of thepublic to be essential. Aware ofits social role and socialresponsibility it also wants to beseen as an attractive employer.

… A group of Americaneconomists came up with a way to test the performance ofvarious countries and their postoffices. They sent false letters tonon-existent companies at made-up addresses in 159countries… and then waited tosee which letters got returned tosender. …During the first 90 daysletters came back from the CzechRepublic, El Salvador, andLuxembourg, as well as from theUSA. Letters sent to 16 countriessimply disappeared, as if into theBermuda Triangle…

iDnes.cz, 9 August 2012

13

Mafra and Ringier choose Česká pošta

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Legal status of theCompany

The Company is a legal entity inthe meaning of section 18 of actno. 40/1964 Coll., the civil code, asamended. Its legal and ownershipstatus is regulated by the state-owned enterprise act no. 77/1997Coll., as amended. The Companywas founded on 1 March 1993 bythe Ministry of Economy of theCzech Republic in accordance withthe state-owned enterprise actand incorporated by registration inthe commercial registermaintained by the district court forPrague 1, section a, file 7565. Thepresent record is in thecommercial register maintainedby the municipal court in Prague,section a, file 7565. The Ministry ofTransport and Communicationsissued a deed of foundation of thestate-owned enterprise CzechPost, effective from 16 June 1997which was later amended.

During 2012, amendment No. 26was approved which extended thebusiness activity of Czech Postand a change in membership ofthe Supervisory Board was alsomade.

Amendment No. 27 was alsoapproved which extended thebusiness activity of Czech Postand referred to the decision onestablishment of the ICT servicesbranch. The ICT branch wasestablished based on the decisionof the Director General from 27April 2012 in order to ensure theselected supplies and services inthe field of information andtelecommunication technology forpublic administration. In relationto this project, Appendix 2 dated 8 November 2012 was issuedwhich changed the status of stateenterprise Czech Post.

The Czech TelecommunicationsOffice (“CTO”) is the regulator forbasic postal services andinternational mail prices. Theministry of finance regulatesprices of certain domestic mailservices.

As at 31 December 2012, theInterior Ministry of the CzechRepublic acted as the Founder ofCzech Post on behalf of thegovernment.

Management and supervision of the Company

Director GeneralThe Director General, as astatutory body of Czech Post,manages the Company’s activitiesand acts on its behalf. The directorgeneral decides on all mattersthat do not fall, by the operation oflaw, under the competences of theFounder (section 12 of the state-owned enterprise act and the deedof foundation of the state-ownedenterprise Czech Post).

Supervisory BoardThe Supervisory Board has twelvemembers. It supervises theperformance of the activities ofthe Director General and thecarrying out of the Company’sbusiness plan. Subject to thestate-owned enterprise act no.77/1997 Coll., as amended, eightmembers of the SupervisoryBoard are appointed and removedby the Founder; the remainingfour members are elected andremoved by the Company’semployees. As at 31 December2012, the Supervisory Board hadall eleven members.

Committees of the SupervisoryBoardThe Supervisory Board establishescommittees of the SupervisoryBoard as its working bodies.Members of individual committeesmeet mainly for preliminary anddetailed examination ofdocumentation that is to besubmitted to the SupervisoryBoard as a whole for furtherexamination. Members ofindividual committees are electedand removed by the SupervisoryBoard.

At present, the Committees ofthe Supervisory Board are asfollows: – Committee of the Supervisory

Board for the Company’sStrategy,

– Committee of the SupervisoryBoard for Finances and Audit,

– Committee of the SupervisoryBoard for Human ResourcesDevelopment,

– Committee of the SupervisoryBoard for ClassifiedInformation,

– Committee of the SupervisoryBoard for ICT services providedto public administration.

14

ANNUALREPORT2012

Statutory body and Management Board of the Company

The bodies of Czech Post in the meaning of section 11 of the state-owned enterprise actno. 77/1997 Coll., as amended, are its director general and the Supervisory Board.

Members of the Management Board, i.e. Director General and his deputies, of theCompany as at 31 December 2012:

Members Position Position established on Registered of the Management in the Commercial Board Register onPetr Zatloukal Director General 25 May 2011 30 June 2011Martin Elkán Deputy Director General and Chief Executive of Sales and Marketing 1 June 2011* 30 June 2011*Tomáš Ječný Deputy Director General and Chief Executive of ICT and eGovernment 13 February 2012* 11 April 2012*Richard Soldán Deputy Director General and Chief Executive of Postal Operations and Logistics 13 February 2012* 11 April 2012*Martin Horák Deputy Director General and Chief Executive of Finance 1 December 2012* 10 January 2013*Ladislav Tomeš Deputy Director General and Chief Executive of Property Management 13 February 2012* 11 April 2012*

* appointment to the position of Deputy Director General

During 2012 the following changes in the Management Board were recorded into the Commercial Register:

Members Position Position Registered Position Change recorded of the Management established on in the Commercial ceased on into the Commercial Board Register on Register onRadim Bureš Deputy Director General 1 May 2012 10 May 2012 30 November 2012 10 January 2013Jana Vošická Deputy Director General

and Chief Executive for Finance 13 February 2012* 11 April 2012* 30 November 2012* 10 January 2013*

* appointment to the position of Deputy Director General

15

PROFILE

16

ANNUALREPORT2012

Organisational structure as at 31 December 2012

Branch ICT ServicesExecutive Director

Sales and ServiceExecutive Director

ProjectsExecutive Director

Communication InfrastructureExecutive Director

Internal Audit andRisk ManagementExecutive Director

CoraporateManagementExecutive Director

OmbudsmanOmbudsman

CommunicationExecutive Director

LegislationExecutive Director

SecurityExecutive Director

Protection of Persons and PropertyExecutive Director

Postal SecurityExecutive Director

PostalTechnologyChief Director

Allocations andPaymentsExecutive Director

StrategicDevelopmentand BIExecutive Director

Postal TechnologyExecutive Director

ComplaintsExecutive Director

Purchasing andProcurementChief Executive

Public ContractPreparationExecutive Director

CentralPurchasingExecutive Director

Standardize andPromote thePurchaseExecutive Director

PurchasingStrategy andSupplyExecutive Director

Human ResourcesManagementChief Executive

Collective andSocialRelationshipsExecutive Director

Renumerations Executive Director

PersonnelInformationExecutive Director

5 HR – FrontOfficesExecutive Director

HR DevelopmentExecutive Director

HR Processes –Back OfficeExecutive Director

Czech Post Director General

17

PROFILE

FinanceChief Executive

Accounting andTaxesExecutive Director

ControllingExecutive Director

Treasury andFinancingExecutive Director

ICT andeGovernmentChief Executive

ICT SecurityExecutive Director

ICTExecutive Director

eGovernmentExecutive Director

ICT SupportExecutive Director

Sales and MarketingChief Executive

Sales CoordinationExecutive Director

BusinessDevelopmentExecutive Director

MarketingExecutive Director

Regional andInternationalSalesExecutive Director

Corporate SalesExecutive Director

Alliance PartnersExecutive Director

PropertyManagementChief Executive

Administration Executive Director

OperationsExecutive Director

TransportManagementExecutive Director

Operations supportto Logistics andProcurementChief Director

Logistics NetworkArchitectureExecutive Director

Regional supportto LogisticsNetworkExecutive Director

InvestmentsExecutive Director

LogisticsExecutive Director

Money ServicesOperationExecutive Director

8 RegionsExecutive Director

Regulatoryframework of postalservices

National legislation and postal license

In April 2005, the CzechTelecommunication office becamethe national regulator for postalservices. The main piece oflegislation governing the powersand duties of this nationalregulator is the Postal services actno. 29/2000 Coll., as amended.

By its decision no. 76 026/2008-608 dated 5 December 2008, theCTO granted a postal licence toCzech Post. The decision alsoimposes the basic qualityrequirements on the Company asthe licence holder. This decision,published in the Postal bulletin on1 December 2008, endorses, interalia, the duty to fulfil theobligations of the Czech Republicas a member of the UniversalPostal Union in the position ofa party to international postal

agreements in the meaning of theActs of the Universal Postal Union;obligations of the Czech Republicas a member of the EuropeanUnion, which apply to generalservice providers in the meaningof directive 97/67/EC of theEuropean Parliament and of thecouncil, on common rules for thedevelopment of the internalmarket of community postalservices and the improvement ofthe quality of service, as amended;obligations to provide basicservices to the blind free ofcharge, and other obligations.

By its resolution no. 1565 of 7 December 2005, the Czechgovernment approved thegovernmental decree defining thescope of postal licence effective asat 1 January 2006. This decree,published in the Collection ofLaws under No. 512/2005 Coll.,limits the postal monopoly of thelicence holder to mail containingdocuments that weigh no morethan 50 g and cost a maximum ofCZK 18.

Liberalisation of postalmarkets within theEuropean Union

The Postal Services Directive of1997 (97/67/EC) marked thecompletion of the first stage ofpostal service harmonisationwithin the EU. The subsequentregulations led to further openingof postal markets to thecompetition. The Companycurrently operates within theliberalised environment with theexception of mail containingdocuments that weigh no morethan 50 g and cost a maximum ofCZK 18.

In 2007, Directive 97/67/EC of theEuropean Parliament and of theCouncil was amended. Theamended directive sets thedeadlines for full liberalisation ofthe European postal market. Theoriginal deadline was extended bytwo years some EU membercountries may extend it bya further two years.

The primary reason for thisextension was the concerns ofmember states about adequateprovision of general postalservices under this directive, theCompany will lose its limitedmonopoly over letter mailweighing up to 50 g by 1 January2013. The present directive2008/6/EC of 20 February 2008amends directive No. 97/67/ECwith regard to the fullaccomplishment of the internalmarket of community postalservices. An amendment to thePostal Services Act No. 29/2000Coll. was prepared by the ministryof Trade and industry inconnection with full liberalisationof the Czech postal market in2013. The bill was approved by thegovernment and submitted toParliament for approval. TheCompany was actively involved inthe process and proposed a rangeof modifications and changesmainly with regard to securing anequal position on the liberalisedpostal market.

18

ANNUALREPORT2012

The legislation process was completed inJune 2012 when the President of the CzechRepublic signed the new act on postalservices which became effective on 1 January 2013. Postal licence granted toCzech Post is valid until 2017 (five years).

The amended act on postal services led to abolition of Czech Post monopoly fordomestic letter mail weighing less than 50 grams for the price of below CZK 18. It also gave a specific definition of postalservices market, determined the scope of universal service and the mechanism for securing it within the Czech Republic.

The change in price regulation andfinancing of universal service(basic services) is also beingconsidered. In relation to theamended act, the CzechTelecommunications Office issueda set of implementing decreeswhich define the responsibilities ofpostal services providers andoperators and conditions forsecuring public availability ofbasic services.

Selected responsibly of a postallicence holder:– fulfil the postal obligation in

a manner complying with theneeds of the public and basicrequirements of quality,including a permanentprovision of information onbasic services and the mannerof their utilisation,

– offer postal services which aresubject to the postal obligation,according to postal terms foraffordable prices which allow touse the basic services to theextend reflected by thecommon needs,

– giving unjustified preference tocertain persons interested inbasic services guaranteed bytheir postal licence or placingsuch persons at an unjustifieddisadvantage shall not beallowed,

– allow at least one posting andone delivery to any individual orlegal entity’s address eachworking day (exemptions areset out in the implementingdecree),

– enable other operators toaccess the means of postalinfrastructure and servicesconnected with operating ofpostal infrastructure ina transparent and fair mannerbased on a written agreement.

19

PROFILE

How to have your cakeand eat it, too

It’s something of a fairy tale witha happy ending, about how avillage in the middle of theVsetín Highlands had its cakeand ate it, too. In the autumn of2010 the village, which has just900 inhabitants, was shocked tolearn that Česká pošta was toclose its post office there, at theend of that year. … And thevillage council was afraid that, ifthey didn’t do something aboutit, the locals would really letthem have it at the nextelections. So they put their headstogether and came up with aplan. They decided to open apick-up point, hire someone tosit at the window, and at the endof each month issue Česká poštaan invoice for transactions.

Valašský deník, 22 March 2012

Subsequent events

As at 4 February 2013 RadekŠmerda was appointment by theFounder to the post of member ofthe Supervisory Body.

No other material eventsoccurred between the balancesheet date and the date ofpreparation of the financialstatements, which would affectthe financial statements reportedfor the 2012 accounting period.

20

RECORD PURCHASE OF NATURAL GAS-POWERED

The Czech Republic’s biggestemployer, Česká pošta, is buying412 delivery vans that run onCompressed Natural Gas (CNG).Within four years, the postalservice’s CNG-powered fleet couldexpand to up to 2,900 vehicles –that’s about half the fleet.

Mladá fronta Dnes, 9 July 2012

21

“If we were to replace 2,900 existing vehicles with CNG-fuelled ones over thenext four years, the resultingsavings on fuel would be asmuch as CZK 360 million,”explains Patrik Zeithaml,Director of Transportation atČeská pošta.

Mladá fronta Dnes, 9 July 2012

Economic position

Czech Post managed to maintain operatingrevenues above CZK 20 billion in 2012,recording CZK 20,183 billion.

Year on year revenues fell by CZK 595 million, which was mainlydue to the national census ofpopulation and dwellings whichtook place between 2010 and2011. This project generatedrevenues of CZK 596 million in2011. Having eliminated thiseffect, the year-on-year revenuesremained flat but their structurechanged.

Revenues from postal operationsdecreased by CZK 303 million dueto the continuous decline inrevenues from traditional services(traditional letters, registeredletter, postal money orders) whichare being replaced by electronicforms of communication andpayment.

This decline was partly offset by rising revenues from pressdistribution, packages,international shipments, etc.

At the same time, the Companyrecorded an CZK 299 millionincrease in revenues from thirdparty services, primarily due to higher commissions for theoperation of Poštovní spořitelna(Post Bank) and excellent pensionscheme sales in the second half.

In 2012, revenues from electronicservices (ICT) increased. The year-on-year increase by CZK 185 millioncan be primarily attributed to publicadministration communicationinfrastructure services andmonitoring of unemployed services– DONEZ, EKIS project etc.

22

ANNUALREPORT2012

ACTIVITYREPORT

Also worthy mentioning is theimpact of the changes in mobilephone top up services in relationto insolvency problems of Sazkaduring 2011. Topping up via CzechPost internal system (APOST)rather than Sazka terminals andsale of recharge couponsdominated in 2012. As a result, topup commissions grew by CZK 12 million whereas revenuefrom sales of products fell by CZK 193 million and cost of goodssold by CZK 183 million.

The operating costs fell year-on-year by CZK 480 million, mainlyinfluenced by again the nationalcensus of population anddwellings which led to a decline instaff costs by CZK 316 million. Themain reason for this decline was

however due to a reduction of staffby 1,039 FTE (-3.1%). The increaseof an average salary by CZK 346(+1.6%) and higher utilisation ofagreements resulting from moreextensive news and magazinedistribution initiated an oppositetrend.

The year-on-year materialconsumption fell by CZK 131 million(a one-off purchase of GPSequipment, PDA equipment etc.).Conversely, costs the contrary,cost of purchased services grewby CZK 192 million which is tightlyrelated to subcontracts for theprovision of Czech post services,i.e. communication infrastructure,monitoring of unemployedservices, delivery of outboundinternational parcels etc.

In 2012, the Company generated total profitbefore taxation equaling to CZK 306 million, CZK 113 million less than in the previousyear. Profit after tax was CZK 261 million.

Trends in key economic indicators

Financial and operating indicators

2008 2009 2010 2011 2012Assets (in CZK million) 22,442 22,726 21,308 21,775 26,766Equity (in CZK million) 9,630 9,979 10,010 10,159 10,281Operating income (in CZK million) 19,970 20,280 20,530 20,778 20,183Out of which: Income from sale of own products and services (in CZK million) 19,254 19,627 19,942 20,076 19,646Operating costs (in CZK million) 19,212 19,740 20,332 20,412 19,932Out of which: Staff costs (in CZK million) 13,082 12,895 12,801 12,741 12,425Profit before tax (in CZK million) 365 661 263 419 306Net profit (in CZK million) 293 554 214 338 261Employees – full-time equivalent 36,332 34,948 34,374 33,202 32,163Average monthly salary (in CZK) 20,565 21,500 21,353 21,538 21,884Profit before tax/income from sale of own products and services 1.90% 3.37% 1.32% 2.09% 1.56%Profit before tax/Assets 1.63% 2.91% 1.23% 1.92% 1.14%Profit before tax/employees – full-time equivalent (CZK) 10,058 18,923 7,655 12,632 9,526

23

ACTIVITYREPORT

Survey: People trust thepost office; advertisingthere “works”

Česká pošta is trustworthy andpositively perceived, and theeffectiveness of its advertisingchannels is above-average. Outof various advertising formatsconsidered in the survey, thebest in terms of spontaneousand supported recognition were flyers, advertising cases,and posters. The survey wasconducted by Médea Researchfor Media Master, a companythat sells advertising space atbranches of Česká pošta.

tyden.cz, 23 August 2012

Total fees paid and payable to theaudit company for the statutoryaudit of financial statements andaudit in accordance with IFRS for2012 amounted to CZK 2 million,also total fees paid and payable tothe audit company for thestatutory audit of financialstatements and audit inaccordance with IFRS for 2011amounted to CZK 2 million.

Profit before tax (in CZK million)

24

ANNUALREPORT2012

562

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Operating costs (in CZK million)

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15,66116,495 17,246 16,941

19,212 19,740 20,332 20,412 19,932

2005 2006 2007 2008 2009 2010 2011 2012

25

ACTIVITYREPORT

Structure of assets in 2012(in CZK million)

Structure of liabilities and equity in 2012 (in CZK million)

Registered capitalCapital contributionsFunds from profitsProfitOwn liabilitiesEntrusted liabilitiesOther liabilities

Fixed assetsInventoriesOwn receivablesOwn financial assetsEntrusted financial assets and receivables

“Five rolls please… and I’ve got a letter to pick up.”

České Libchavy. “At thebeginning, we were a bitembarrassed about it,” admitsvillage Mayor Jan Krčmář. Buthe immediately adds that, now,people can pick up their mail atany time during the GeneralStore’s opening hours, and evenon Saturday. And that, he thinks,is a benefit.

Orlický deník, 25 January 2013

26

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27

ACTIVITYREPORT

Investments and technical development

2012 was marked by continued extensivefleet renewal.

The Company bought 76 newdelivery trucks, including 10 vehicles powered by naturalgas (CNG). 11 sets of road tractors+ semitrailers for use within themain transmission network werealso bought. All these vehiclesmeet the Euro 5 emissionstandards. In the category of up to3.5 tonnes vehicles 412 deliveryvehicles running on CNG and 60 CNG-powered passenger cars were acquired underoperating lease agreements.Czech Post operates a total of 482 CNG-powered vehicles being the largest operator ofCNG-powered vehicles in theCzech Republic and therebysignificantly contributes to thequality of the environment intowns and villages.

Within the renewed logisticsnetwork in relation to bulk deliveryand posting, 12 depot units wereopened in 2012:− 1 in Prague Region (Praha 70 –

Rudná u Prahy, logistic park)− 3 in the region of Central

Bohemia (Rakovník 70 – in aformer parcel dispatchingpoint, Příbram 70 and Mělník70 – reconstructed formertransport plant),

− 3 in South Bohemia (Pelhřimov70 – lease of a customs building,Strakonice 70 and HavlíčkůvBrod 70 – reconstructed formertransport plant)

− 1 in the region of West Bohemia(Tachov 70 – in the formerparcel dispatching point),

− 1 in the region of South Moravia(Vyškov 70 – purchase andrenovation of the building),

− 3 in North Moravia (Jeseník 70 –Construction andreconstruction in the area of aformer parcel dispatchingpoint, Nový Jičín 70 and Opava70 – purchase and renovationof the building).

On Monday, Česká pošta openeda new post office at GalerieFénix, into which it mergedthree post offices in Prague’sVysočany city district. All told,the company plans to buildaround 50 branches around thenew format this year.

Pražský deník, 30 January 2012

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ANNUALREPORT2012

In 2012, there were contractsconcluded with the successfulbidders of tenders for thedeveloper construction of ‘turnkey’objects and subsequent transferof ownership to Česká pošta, s.p.This relates to a total of 11 contracts. Acceptance of thefirst four finished objects tookplace in December 2012 andrelates to the following depots:Lovosice 70, Trutnov 70, Znojmo 70and Prostějov 70. It is expectedthat all 11 ‘developer’ depots forwhich in 2012 contracts weresigned, are to be launched in 2013.

Mail handling technology withinthe logistic hubs (SPU)In 2012, a project launched in 2009continued, under which five of theSPUs are to be equipped with newmachines for automatic lettersorting. Modernisation of thesystem enables more accuratesorting of appropriate mail - to thelevel of delivery districts. This wasfollowed by new technology beingimplemented in Olomouc 02 andPlzeň 02 SPUs, which results inthere being three fully equippedSPUs at the end of the year. Thisequipment upgrade will facilitatemanual sorting, reduce costs,improve time utilisation andultimately increase the quality ofservices provided.

Parcel handling technology withinthe logistic hubs (SPU)Operational technology problemsarising from the current conditionof automated parcel handling, suchas a lack of space or inconsistentparameters of existing facilities(e.g. sorting of mail with the same maximum weight), led to theneed for standardisation andimplementation of machinetechnology for sorting parcels withhigher technical parameters.By implementing machinetechnology, all prerequisites are inplace for maintaining andimproving the quality of servicesand optimising mail shipping andhandling expenses.

In 2012, a project which aims toequip four SPUs with parcelsorting machines was continued -technical specification wasprepared and a public tender forselecting a contractor wasannounced.

At the end of 2012, 39 out of 70 planneddepots were in operation which act or willact as both the centralised delivery outlets(replacing about 530 parcel dispatchingpoints) and client sites for posting andprocessing of bulk shipments from contractcustomers.

Both historians andletter carriers are signedunder an exhibition ofunique historicalphotographs...

“They know the city inside andout. They know every memoriala dog has ever marked, if you’llpardon the expression. When wewere having a hard timeidentifying certain places, theletter carrier found them. Onephotograph was giving us no endof trouble – when we showed itto the letter carrier, she said: Yes,it’s here, but the photograph isreversed, as if you were lookingat a mirror image of it. Onehundred years ago, they made amistake when they wereenlarging the photograph…”

decinsky.denik.cz, 23 January 2012

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ACTIVITYREPORT

GPS-equipped vehiclesFollowing the successfulinstallation of a GPS vehiclemonitoring system, Fleetwaresystem was installed onworkstations of assigned in orderto evaluate data and makeanalyses leading to optimisation offleet operations.

This project seeks to optimise the use of the current fleet and tosimplify administration inparticular, it also has a positivecontribution to driver safety(emergency button).

Equipping premises with smallautomation and handlingequipmentThe process of equipping premisessuch as post offices, depots, SPUs with small automation andhandling equipment includes aphase of technical specifications,tendering stage and acquisitionphase according to the operationalneeds for reconstruction anddevelopment.

Small automation includes: coinand banknote counter, banknotesorters, postage and stampmachines, strapping andpackaging machines andcustomer card printers.

Handling equipment includes:various types of hand trucks forthe handling of shipments, crates,sack trucks and pallet trucks.

Acquisition of small automationwith a qualitatively higherspecification contributes to theimprovement in the quality oflabour, elimination of human errorand ultimately to the reduction inthe physical demand andincreased speed of handlingpostal products.

Purchase and supply departmentThe Purchase and supplydepartment is an integral part ofCzech Post. Its main duties are:securing centralised purchases,managing and securing suppliesfor internal customers andsupporting and monitoring publictender announcements.

Czech Post announced cca. 400 tenders through the purchaseand supply department (“NZ”). Foreach of them, the NZ departmentcooperated with a specialiseddivision responsible for eachtender, ensuring the best value formoney of requested services,supplies of construction works.

Significant public tendersThe most important contracts ofthe past year in terms of scale,financial performance andimportance for Czech Post arethose of cleaning services, supplyof uniforms and purchase ofvehicles.

Within the tender for cleaningservices, terms and conditions forthe provision of cleaning serviceswere unified for all regionsbringing significant financialsavings.

In respect of uniforms, Czech Postdecided to change their design in2011. The NZ division entered intoa framework agreement withthree major suppliers to supplyuniforms. The newly tendereduniforms are modern andespecially comfortable.

At first, motorised delivery officerswere outfitted in 2012, followed bythe counter staff. In 2013, the newuniforms will be handed out to e.g.post office managers and footmessengers.

Five above the limit public tendersfor the purchase of vehicles torenew and develop its fleet parkwere announced by Czech Postthrough the ND division forrenewing and developing its fleetpark. Four of the five above thestatutory limit contracts wereconcluded in 2012. Czech Postpurchased 60 management cars,240 officer cars, 412 light utilityvehicles, 11 sets of road tractorswith semitrailers, 35 larger utilitycars for a total of CZK 300 million.The majority of the vehicles wereacquired through operationalleases.

DirectivesIn the past year, the NZ divisionhad to respond to the so called‘great transparent amendment’ toAct No. 137/2006 Coll., On PublicProcurement, which came intoeffect on 1 April 2012 amendingthe procedures and rules forprocurement for both public andindustry sector contractingauthority. The response to thisamendment was reflected in thepublication of the followingamended directives SM-3/2011(below threshold sector contractsand procurement of small scale)and SM-4/2011 (below thresholdand above threshold procurementby public authority and sectorabove threshold contracts).

Electronic auctions and e-tržiště(e-marketplace)Czech Post is adapting to newopportunities in publicprocurement, especially bycomputerisation. The mostimportant tools for e-procurementinclude electronic auctions and e-marketplaces.

Electronic purchase auctions havebeen used by Czech Post since thebeginning of 2011. The mainadvantage of electronic auctions isthat they save time and money andincrease the transparency of theprocess. In 2012, 19 electronicauctions were carried out.

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ANNUALREPORT2012

Since July 2012, Czech Post has beenactively using the electronic marketplace asa tool for the selecting of suppliers fortenders for goods supplies and certainservices with an estimated value of up toCZK 300,000. Over the past year, theelectronic marketplace led to bettercentralisation and savings of around22.41% with 52 procurements issued.

Mediaservis cancels itsnewspaper deliveryservice; Česká poštacomes to the rescue

Now that Mediaservis will nolonger provide for delivery ofnewspapers and other periodicals,publishers are trying to quicklycome to an agreement withČeská pošta. As a result thepostal service is once againbecoming a key player in thisindustry. It used to havea monopoly on newspaperdelivery, which lasted roughly200 years, but it ended in theearly 1990s. The postal servicealready delivers newspapers andmagazines to approximately halfa million addresses – subject toa 7:30 a.m. delivery deadline,which is a complication for thepost office – for example, thestack of newspapers for thePrague 1 city district, alone, hasdoubled in size. “The competition cancelled itscontracts with practically nowarning, so today we’re deliveringnewspapers Republic-wide. Itwill be some time before wecome to terms with it,” saidpostal service spokesperson IvoMravinac.

ČT24, 2 October 2012

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ACTIVITYREPORT

Sales activities

For Czech Post, 2012 was a year ofpreparation for market liberalisation.

The Marketingdivision, incooperation withsales department,has introducedextensive innovationsto the productportfolio andsupplementaryservices so thatCzech Post canmaintain its leadingposition on themarket and setstrends for futuredevelopment.

In addition, further optimisation ofthe sales segment organisation inCzech Post headquarters tookplace in 2012. All those changeswill lead to more effective salesactivity, especially in light of theaforementioned liberalisation.

Customers

From today’s perspective, ourentrance onto the morningdelivery market can be describedas successful. We can, however,expect further improvement in thismatter in 2012. We have beendistributing nearly 100% of thedaily newspapers in the CzechRepublic since October as well asthe majority of magazines.Distribution has therefore comeback to where it originated.

Despite the natural decline inposted mail, we succeeded inmaintaining the annual growth inthe corporate customers’ segmentthanks to the aforementionedacquisitions. Innovationintroduced to the parcel portfolioalso proved to be the right move.During 2012, new parcel portfolioswere implemented by all majoronline stores. This let us gain abigger market share in thissegment.

Except for the implementation ofcustomer relationshipmanagement in the corporateenvironment, which started in late2011 and which has alreadyproved effective in the firstfunctionality testing stages, otherextensive preparations for such ahistoric transition for the CzechPost. Some of the key changeswere for example defining theconditions of mail posting in 2013,which means posting in the fullyliberalised market. A new pricingstrategy has been developed,followed by product innovations.This combination madenegotiations with customerssuccessful and it can be said thatCzech Post has not lost a singlekey customer.

In the segment of retail customerswe have started projects that willhopefully bring Czech Post closerto today's customer. ThePostShops project introduced atselected post offices, wherecustomers can not just look at butalso touch both postal andcomplementary assortment aswell as purchase some candy. Atthe end of the year, eightPostShops have been opened. Wehave also opened an on-line shopat www.postshop.cz. Along withthese activities, we continuouslydevelop postal as well as non-postal services to be purchased atpost office counters.

We have succeededin showing customersthe benefits of value-added services, and have increasedthe share of suchservices in total sales.

32

Post office moving into shopping centers

New branches bring new comfort to customers.

They’ll be open all weekend long!

Ústecký deník, 5 January 2012

Services on behalf of alliance partners

From the perspective of Czech Post, 2012was extremely successful as far asprovision of services on behalf of alliancepartners is concerned:

– Sales plans were met for major products.− Revenues grew significantly.

A complex amendment to thecontract with s ČSOB, a. s. for Post Bank services wasconcluded. The new amendmentmeans increase in revenues forCzech Post and higher motivationin terms of sales and its quality.The most visible improvementrelates to commencingreconstruction of 100 existingspecialised counters andconstruction of 50 new ones.

On the investment side, a construction of 80 specializedcounters with comprehensiveinsurance services of ČeskáPojišťovna was completed. CzechPost can now offer the sameservices and products that ČeskáPojišťovna sells at their ownpremises.

A new contract with a long-timepartner – lottery company Sazka, a.s. was concluded, whichtogether with the current calmsituation around Sazkacontributed towards an increase insales from this area. In the secondhalf, Czech Post began to selllottery tickets from two newpartners – Tipsport and Fortuna.They sold unexpectedly wellbefore the year end.

Both the offered supplementarypension insurance schemes sawrecord high sales – ČSOB Penzijnífond stabilita, a.s., and Penzijnífond České pojišťovny, a.s. Due tochanges in legislation, a multipleincrease in sales was recorded inNovember mainly as compared toprevious months.

The total revenue from sales ofbuilding savings schemes weresimilar to expected figures, better results were achieved with Raiffeisen stavební spořitelna, a.s., thanČeskomoravská stavebníspořitelna, a.s.

The range of services is madecomplete by appropriate servicesprovided on behalf of otheralliance partners, such asWestern union PES, s.r.o. with anoffer of money transfers; HomeCredit a.s. with a portfolio of credit products; and Pražskáplynárenská, a.s. with customerservices provided on behalf of thisPrague-based gas company.

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ACTIVITYREPORT

How did you come towork for the postalservice?

I like to work with people, so itmore or less came naturally…When an angry person comes inand yells, and you can tell theyjust came to the post office toget the bile out of their system, itruins your day. You try toremain calm and polite, but the people are really meansometimes. I’ve been workinghere for ten years now, and I’velost my temper only three times –it really takes a lot to make meangry. But the kinder clientsdefinitely prevail and I, too, tryhard to be kind.

What’s the farthest a letter fromyour post office has gone?The Dominican Republic, theUnited States. From us, lettersgo out to the whole world.

Excerpt from interview withLenka Raunerová, teller windowemployee in Pilsen, for Plzeňskýdeník, 4 August 2012

Postal services

Structure of the services provided

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ANNUALREPORT2012

MailOrdinary

LettersParcelsMail for the blind

RegisteredLettersParcelsMail for the blind

InsuredLettersParcels

Obligatory services

Domestic Outbound

Money ordersCash – account

Money order A

Account – CashMoney order B

Cash – CashMoney order CMoney order D

MailOrdinary

MailPrinted matter bagMail for the blind

RegisteredMailPrinted matter bagMail for the blind

InsuredLettersParcels

StandardParcels

Money ordersCash – account

Money order Z/A

Cash – CashMoney order Z/C

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ACTIVITYREPORT

Domestic

Outbound

Additional

Obligatory services 2012

At post Office International On delivery Agency

Radio fees

Television fees

Pensions

Czech POINT

ISDS

DomesticParcel delivery To handParcel delivery to Post officeEMSExpress Parcel DeliveryMail order ParcelCommercial letter

OutboundEMSExpress Commercial ParcelCommercial letter

Additional

Non-obligatory services 2012

At post Office Other Agency On delivery

SalesPOSTFAXRIPMPress mailOversize Parcel delivery

Philately

Lotteries

Postservis

Electronic servicesCertification authorityREPHybrid mailCentral addressPostal data message

Others

Express financialservices

SIPO

Betting, Lotteries

Highway stickers

Duty stamps

Telecommunicationservices

Banking services

Supplementary pension

Building saving schemes

Insurance schemes

Others

Traditional postal services

LettersThe general downward trend in thevolume of letters is continuing; therate of this decline in the case ofordinary written correspondenceis 9% annually and 5% forregistered letters but is slowingcompared to the previous period.

Direct MailDirect mail services grew, inCommercial correspondence, byless than 2% and by 8% in thearea of delivery information andpromotion brochures, reflectingmunicipal and presidentialelections and inactivity of somecompanies on the brochuremarket. The largest increase of17% was noted in the field ofpress mails which significantlyaffected in the last quarter bygaining new orders from SENDPředplatné spol. s r.o. The directmail portfolio consists of newsupport from RIPM productsthrough geomarketinginstruments, which helps optimiseof brochure distribution plansaccording to customers orders.

Preparations for theliberalisation of the postalmarket in 20132012 was the year of preparationfor the expected liberalisation ofthe postal market. Projects wererealised, including mandatoryadaptation of the product portfolioso it is in accordance with therequirements of the new law onpostal services and implementingregulations. Projects also includeoptional adaptation whichprepares the products for a fullyreleased postal market in 2013. An extensive communicationscampaign was completed inpreparation for postal marketliberalisation.

At the beginning of November 2012an advertisingcampaign waslaunched with thepurpose of keepingexisting customers.The communicationincluded rationaldata expressing theposition of CzechPost on the postalmarket and thequality of servicesprovided.

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ANNUALREPORT2012

B2B segment was targeted foradvertisements in newspapersand magazines; pictures of ourletter carriers were published inregional press. A printedadvertisement was supplementedby Czech Post’s new televisionspot, the first in the history ofCzech Post, which wastransmitted on more than 20 TV channels. The aim of thiscampaign was to strengthen theimage of Czech Post as a reliableand trustworthy partner.

For direct support of sales,comprehensive marketingmaterial for a new productportfolio was prepared. Theportfolio presented a range ofpostal services as “Mail menu”and reflected the slogan “We donot want to feed you boringnumbers, but we have a hugenumber of arguments.”

The internal communication in thePostal newspapers published aseries of articles about campaignand liberalisation. Pictures of ourletter carriers from the advertisingcampaign were also used in ourwall calendar.

Head of Česká pošta: In the future, the Postwill take passengers

„Our delivery vehicles visitnearly every village in the CzechRepublic three times a day. Whynot take advantage of that andtake, say, seven schoolchildrento school or an elderly lady tothe doctor? I myself hail from a village of 200 inhabitants, andyou hardly ever see a bus there.Of course, it’s not my intentionfor us to compete with otherpassenger transport companies.You see, as long as we’re makingthe trip to those small villagesanyway, why not try to cut down on costs a little and helppeople at the same time?,“ saidZatloukal for Lidové noviny.

Finanční noviny, 20 October 2012

ParcelsSince January 2012, all the newproducts from parcels portfoliowere fully launched after asuccessful evaluation of theprevious pilot operations: parceldelivery to hand, parcel delivery topost office, express parcel deliveryand oversize parcel delivery. Withthe implementation of the newparcels portfolio, the possibility ofposting commercial parcels forretail customers and posting bycontracted customers wascancelled and transferred duringthe year in the “parcel delivery tohand” option.

In 2012, volumes of parcels in thesegment of basic servicesdecreased by 17% year-on-year.This decrease was fully offset bythe increase in the number ofparcels in the category of otherpostal services, which reached10% year-on-year. Parcels in thiscategory are normally carried in a mode D+1. Newly implementedproducts such as “parcel deliveryto hand” and “parcel delivery topost office” in the category ofother postal services havereached the same or an evenbetter evaluation in the area ofsuccessful delivery compared tothe original products of thiscategory. International parceltogether with the foreign serviceEMS recorded a 37% increasecompared to 2011. This increasewas primarily caused by theintroduction of parcel consignmentin selected European countries.

The campaign “The Great ParcelRevolution”In 2012 Czech Post launched thelargest media campaign in thehistory: this campaign shouldintroduce new parcel services andenhance the general awareness ofthe Post Office’s actual status.Cartoon parcels were everywherein the whole country – thehundreds of TV spots weretransmitted over the main TVchannels. The “outdoor campaign”has used over 200 billboards, a hotair balloon. An internet bannercampaign was conducted andsupplemented by advertising inmagazines. The campaign wasimmediately reflected in thevolume of parcels posted whichrealised 100% of the revenuesplanned for the other parcelservices for 2012. In the periodwhen the television campaign wasrunning (from April to May 2012),the volume of daily posted parcelsreached the same level as in theChristmas period. During thecampaign, knowledge of name“parcel delivery to hand” tripled,and the name “parcel delivery topost office” even quadruple.“Parcel delivery to hand” and“parcel delivery to post office”were not however the onlyproducts introduced in the newparcel portfolio of Czech Post;“oversize parcel delivery” and“express parcel delivery” werealso part of the marketingcommunication.

The results clearly confirmed that theadvertising campaign was visible andeffective and led to better usage of postal services.

One of the positive evaluations ofthe advertisement was the opinionthat the ad was attractive anddifferent from others and that thebrand represented by the maincharacters was very wellintegrated with the advertisement.The advertisement reinforced thecomfort of services and the senseof security which positively affectsbrand building. The proof of thesuccess of the campaign “TheGreat Parcel Revolution” is thefact that it was nominated for theprestigious Effie 2012 award whichrecognised the most effectiveadvertising campaigns in the year.

In autumn 2012 the campaign“The Great Parcel Revolution” was transferred on the internet.On partners’ websites, the usage of Czech post servicesduring Christmas time wasrecommended for e-shop players.

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ACTIVITYREPORT

Money services

Postal money services Postal money services are anintegral and essential part ofobligatory postal services providedby the Company. Volumes ofpostal money orders, or toolsallowing the customer to sendcash or transfer cash to anaccount, decreased by 9% in 2012compared to the previous year.

SIPOVolumes of SIPO transactions(multiple direct debit payments viathe Company’s payment system)have followed a steady downwardtrend due to them being replacedby similar types of services. Thetotal number of SIPO statementsissued by the Company in 2012was 2% lower than in 2011. This was compensated by theincreasing number of transactionsper statement which grew by 9% to 4.29 when compared year-on-year. The share of electronicSIPO transactions of the totalnumber (electronic and cash) ofSIPO transactions was almost 51% in 2012.

38

Postal service promises to deliver packages anywhere, even in the evening...addressees to be notified of time and delivery possibilities via SMS and e-mail. The postalservice intends to leverage the new service, for which it registered the name “Česká pošta’sGreat Parcel Revolution” as a trademark, to compete more with courier services.

novinky.cz, 3 January 2012

39

Česká pošta to startdelivering packages accordingto customers’ wishes

Starting from this coming Monday,customers of Česká pošta will be ableto choose not only the place, but alsothe manner in which their packageswill be delivered – the postal servicehas launched a new portfolio ofpackage delivery services.

nasepenize.cz, 3 January 2012

Quality of service

In 2012, the Company wassupposed to provide its services atleast at a level of quality stipulatedby the regulator’s requirementsset by the CTO. Quality andcustomer satisfaction ismonitored by means of regularsurveys focusing on the quality ofmail delivery. These are conductedboth by the Company’s internalinspection mechanism and by anindependent subject. Thefollowing table illustrates theresults of the surveys carried outin 2012.

ComplaintsComplaints regarding thedelivery of mail:In 2012, there were 173 complaints filed concerningdelivery (including thoseconcerning failure to deliverconfirmation) per 1 million postedmail items and money ordershandled within the basic postalservices.

The number ofcomplaints whichhave beenconsidered to bejustified were 94 per 1 million.

Complaints regarding the damageor partial loss of mail:As regards complaints aboutdamaged or partial loss of mail,the Company recorded 61 claims

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ANNUALREPORT2012

Delivery time for standard letter mail in 2012 (as measured by an independent agency)

Monitored sample volume (pcs) Days lapsed after the day of posting (%)

1 day 2 daysWithin the region 7,615 95.77 99.51Outside the region 21,646 93.87 99.28Total 29,261 94.37 99.34

Complaints regarding the delivery of mail or money orders per 1 million mail items/money orders:Total number of complaints 173Justified complaints 94

Complaints regarding the damage or partial loss of mail per 1 million itemsTotal number of complaints 61Justified complaints 44

per 1 million posted items, ofwhich 44 complaints wereconsidered justified.

41

iQ

Waiting passively for a long-expected letterto arrive in yourmailbox, or arguingwith the letter carrierover whether you werehome or not when heor she came by, will bethings of the past –provided, of course, thatyou own a smartphone.Česká pošta haslaunched a mobile appfor tracking registeredletters and packages inreal time. ... It can alsofind the nearest postoffice based on thesmartphone’s currentcoordinates.

aktualne.cz,

9 February 2012

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ANNUALREPORT2012

Postal network

As at the end of 2012, one outletserved 3,071 persons (comparedto 3,067 in 2011). The number ofpeople served by one mail boxincreased from 467 to 471compared to 2011.

14 post offices (incl. 13 depots)and 29 service Points/Partnerswere set up and 49 post officesand 2 service points were closeddown in 2012.

Postal terminals in 2012

Total outlets 3 403 (incl. Partners and service Points)Post offices 3,277Out of which: Specialised outlets 29

Postal agencies 14Partners 15Service Points 68Remote counters 21Mobile post offices –Mail boxes 22,349P. O. boxes (rented) 34,797

Delivery areas (letter mail) 8,691Out of which: Delivery areas with car service 3,275

Electronic services

Czech Post smart phoneapplication

For owners of smart phonesrunning on either iOS (IPhone) orAndroid, the Company developed a new application .

The application“Czech Post” whichoffers quick andeasy access to theservices such astrack and trace orpost office finder.

In addition to information ondelivery or pickup locations, thisapplication allows customers toget information about the nearestpost office and services offeredthere and let them find a neededpostcode. A map of the route willbe displayed or they can benavigated directly to the finaldestination. The popularity of thisapplication has been shown by30,000 downloads in 2012.

The development of mobileapplications is currently beingclosely connected with the Track & Trace service; in thefuture, however, it will be relatedto the IWF, i.e. interactive webform enabling its users to changepackage orders or give feedbackon services. Within the packageorder changes, a user will be ableto change the delivery date,choose from an afternoon ormorning delivery or chose a postoffice to which mail will bedelivered. Service evaluationfeedbacks will let both the senderand the addressee share theirpositive or negative opinion onposting or delivery of each item.

The application is available in bothCzech and English and can bedownloaded free of charge fromthe Company’s website or fromthe main websites of theplatforms (the App Store and theAndroid Market).

Currently, the Company is workingintensively on the second generationof its mobile application.

Letter carriers can’tdeliver mail and dangerlurks for villageresidents, too

Dogs in Lhota are giving Českápošta employees cause forconcern. “In the past we hadtrouble delivering mail to onegentleman. He had no mailboxon his perimeter fence, andinside the fence a dog was loose.In such a case, the letter carrierhas no obligation to delivermail,“ warned postal servicespokesperson Marta Selicharová.

denik.cz, 31 March 2012

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ACTIVITYREPORT

eGovernment services

Czech POINT

Czech POINT services were providedby 974 outlets of the Company. Theyrepresent 15 percent of the overallnumber of all Czech POINT contactplaces. The Company’s share intotal volume of executedtransactions exceeds 50%.

Czech Post’s customers couldobtain certified information from arange of public administrationinformation systems at CzechPOINT outlets. The stable biggestdemand was for extracts from thecriminal register, real estateregister and commercial register.Czech POINT outlets alsoaccepted applications and noticesconcerning the data mailboxinformation system (applicationsfor a mailbox set-up, etc.).

The Company expanded theportfolio of Czech POINT serviceswith extracts from the corporatecriminal register and extractsfrom basic registers.

Verification of documents and signaturesIn addition to traditional servicesavailable at many other CzechPOINTs, the Company also offersofficial verification of theauthenticity of the signatures(legalisation) and documentauthentication (verification), whichare the fastest growing services atthe contact points.

DONEZ (Attendance of unemployed)In cooperation with the LabourOffice of the Czech Republic, theCompany’s outlets in the CzechPOINT network have beenproviding so-called DONEZservices. DONEZ is a monitoringdevice of the Labour Office.Certain unemployed have a duty tosign on at Czech POINT terminalsat appointed post offices, approx.twice a week at any time withinthe post office’s standard openinghours. As at the end of 2012, theDONEZ system included around15 thousand unemployed.

0

50,000

100,000

150,000

200,000

250,000

2007 2008 2009 2010 2011 2012

Monthly Czech POINT transactions (incl. verifiactions and legalisations)

Czech POINT volume of transactionsOver 4.3 million transactions wereprocessed by the Czech POINTnetwork in 2012, or 70% morethan in the previous year. Of which,Czech POINT services represent 1 million, DONEZ 1.7 million anddocument and signatureverification, 1.6 million oftransactions.

Czech POINT verification and legalisationDONEZ

Data Mailbox Informationsystem

Two and a half years after itslaunch, the data mailboxinformation system (‘ISDS’) wentthrough further improvements inorder to make it more attractiveand useful for its users.

Data Mailbox redesignThe ISDS system has had a new,more modern, more user-friendlydesign since July 2012. Thefollowing new features have beenintroduced: – The user portal does not

contain the data safe anymore.Data messages which werekept within the data safe arenow kept together with otherdata messages.

– Creation of Mail DataMessages (‘PDZ’) and free datamessages has been unified.The type of a data message canbe now chosen at creation ofsuch by simply choosing fromdifferent ‘message types’.

– When working with the datamailbox portal installation ofthe 602XML Fillers is no longerrequired which significantlyimproves user-friendliness ofdata mailboxes.

Change of business modelAt the end of 2012, Czech Postbecame an exclusive holder of SWand ISDS databases licences.Effective from 1 January 2013, the business model of ISDSoperation has changed. Thechange relates to a transfer froma pay-per-transaction model to afully subscribed model.

Statistical data502 627 data mailboxes had beenset up by the end of 2012, or 50 thousand more than in theprevious year. A total of 45.7 million data messages weresent in 2012. Public authoritiesaccounted for more than 40.3 million, and legal entities for4.7 million out of the total datamessages sent. The remainingmessages (692 thousand) weresent by individuals orentrepreneurs. The volume grewby 30 percent year-on-year. A massive (72%) increase wasrecorded in the segment ofmessages from senders otherthan public authorities.

Additional data mailboxservices

The Company offers a range ofsupplementary services to ISDS.Data mailbox users can useseveral additional services forincreased security and ease of usewhen working with datamessages.

Postal Data Message Postal data message is a servicein the data mailbox informationsystem which can be used byindividuals, entrepreneurs andlegal entities for the purposes ofcommunicating with each other.Postal data message suits anysituation where thecommunicating parties needguaranteed and conclusive proofof document delivery. Postal datamessages are a modernalternative to traditional postalservices, with delivery having legaleffects comparable to those ofdelivered registered mail withreturn receipt. Users canexchange all types of datamessages with any other users,without limitation to the content ofmessages.

Data SafeData safe is a secure andguaranteed data storage forarchiving incoming and outgoingmessages more than 90 days old.The messages are automaticallymoved from the data mailbox tothe data safe without the userneeding to do anything.

In relation to the redesign of ISDSin 2012, Data Safe underwentsome significant improvements.Besides graphic changes thevariability of the service has beenimproved, users can now choosefrom six types of service. Otherinnovations include theintroduction of other paymentmethods, users can now pay bycredit card or by using the on-linetransfer through e-banking orstandard bank transfer.

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ANNUALREPORT2012

Public authoritiesLegal entitiesEntrepreneursIndividuals

During 2012, the number of Postal Data Messagesusers tripled. More than 24 thousand data mailboxusers have enabled themselves to receive Postal data messages whichis a growth by 46%.

Volumes of data messages by senders in 2012

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Safe keyThe Safe Key to Data Mailbox is a new product enabling higherdegree security access to datamailboxes. It also allows its userto attach certified electronicsignatures to electronicdocuments (data messages). It isan action pack containing acommercial and a qualifiedcertificate issued by theCertification Authority PostSignumplus a USB token iKey 4000including the service software forsafe storage of private keys andcertificates. A certificate saved onthe USB token means increasedsafety against data being misusedcompared to saving it onto a personal computer. This devicealso blocks any attempt at copyingthe private key from the token iflost by the holder and a specialcode (PIN) is required for access.

SMS notification andauthenticationThe SMS alerts notification serviceis intended for users who do notcheck their mailboxes regularly.These notifications aboutincoming data messages are usedprimarily by individuals,independent traders and smalllegal entities who receive relativelyless messages to their mailboxesand do not use the data mailboxeson a daily basis. In order to usethis service, it is necessary to havea Czech mobile phone numberwith the Premium SMS.

The options users can use to loginto their mailbox now includefurther solutions enhancing thesecurity of access to datamailboxes via a web interface.

Czech Post electronic marketplace – Procurement centre

The Procurement Centre is an onlineapplication, a so called e-marketplace, which enables electronic procurements in procurement procedures.

E-marketplace is a fully electronicsystem, where all actions taken byboth the contracting authority andthe suppliers are registeredelectronically.

Czech Post’s e-procurementmarketplace Centre wasimplemented on the basis of a concession procedure called“Operator selection to ensure theestablishment and operation ofelectronic marketplaces of publicadministration”. The concessioncontract ref 34060/2011-32 wasconcluded with the Ministry ofRegional Development on 30 September 2011, where CzechPost as the operator is obliged toestablish and ensure the normaloperation of the e-marketplace.The system was launched on 1 November 2012.

Obligation to use the electronicmarketplace depends on the typeof authority, subject to contractand its estimated value. Using it ismandatory for central governmentbodies and subordinateorganisations for selectedcommodities and scope. Using itis optional for other public andsubsidized authority, town, village,or grant recipients. The obligationshall apply to public contractswhich are the subject to listedstandardisable commodities.Through the marketplace smallscale and beneath limit contractsentered in a simplified beneathlimit procurement andprocurements placed under a framework agreement withseveral candidates according to §92 paragraph 3 of PublicProcurement Act.

A flawless eavesdroppingdevice at the Main Post!A long-eared bat

Eavesdropping devices havebeen installed at more placesthan just Prague’s City Hall.Today, Česká pošta employeesfound a spy with crackeavesdropping technology rightin one of the offices of the MainPost! It was a long-earned bat.The rare bat was taken intocustody by the Prague AnimalRescue Service, which isoperated by the Czech Unionfor Nature Protection.

ecomonitor.cz, 22 March 2012

Certification authorities –Postsignum The scheme provides two types of certificate: commercialcertificates that can be used forencryption and unscrambling orfor user authentication, andqualified certificates that can beused for electroniccommunication with publicauthorities.

Another key product is a qualifiedtime stamp which is a valuableaddition to the electronicsignature. It provides reliableinformation about the time thedocument was created and itallows the user to prove theexistence of electronic data at a certain time.

45,451 commercial certificatesand 142,033 qualified certificateswere issued in 2012, whichrepresents a 53% and 9% increasein the annual volume ofcommercial certificates andqualified certificates, respectively.The certificate authority issued theaverage of over thirteen milliontime stamps per month whichmeans a year-to-year increase by 43%.

The total revenues in 2012 stillexceeded those generated in 2011,thus confirming the leadingposition of the Company on themarket.

Early in 2012 the distributionnetwork was expanded byintroducing so called customerregistration authorities, when partof the service is done bycustomers themselves, providedthat there are trained employeeswho provide certification servicesto other customer’s employees.

Apart from basic certificationservices, customers can purchasesupplementary services andproducts via on-line electronicpurchase system. These includeproducts for safe storage ofprivate keys, SW products forelectronic signing of documentsand their archiving.

ICT

The database centre was build in accordancewith the new ICT strategy of Czech Post.The centre provides space for Czech Post’sown ICT technologies and for additionalcapacity for the implementation of housing services for third parties – clientsof Czech Post.

In 2012, the first phase of CzechPost’s connection to the internetproject was completed - newInternet node. The projectrepresented the overallmodernisation of Czech Postinternet connection andbroadening of telecommunicationservices specified primarily forconnection of Partner type post.The upgrade of Czech Postdatabase centre at the same timestarted with the aim to flexibly usemodern communicationtechnologies and reducedependence of the existingtelecommunication operator.

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In 2012 the staff working in the ICToperation section moved all thetechnologies of the backupdatabase centre from the buildingrented from the company T-Systems to Czech Post’s ownpremises in order to reduceoperating cost for rent. Annualoperating costs allocated to theoperation of the backup databasecentre were reduced by 50%. Theproject was very challenging fromboth the technology and thelogistic site. The 107 server,network and other devices weredismantled, moved and mounted.This action had no impact on theoperations of Czech Post.Presently, all Czech Postoperations connected to ITCtechnologies are provided inCzech Post’s own databasecentres which improves the qualityof ICT services especially in thefield of management and control.

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International operations and relations

The Company in the global postal network

The basic framework of the Company’sinternational relationships results from theCzech Republic’s membership in theUniversal Postal Union (UPU).

As a public postal operator, theCompany must maintain anddevelop postal trafficinterconnecting all 191 UPUmember states.

In 2012, the Company paid a greatdeal of attention to thepreparation of the 25th UniversalPostal Union congress in Dohawith the participation of businessrepresentatives. “New world, newstrategies” this main theme of thecongress appropriately reflectsthe huge changes in the currentpostal sector and the need forglobal postal operators to adapt tothe new reality which is thechange in communication.

Quality of service targets in terms of delivery performance (cross-border priority letter mail within the EU):

Time limit* Target Actual 2012 – inbound Actual 2012 – outboundD+3 85% of mail 92.0% 92.4%D+5 97% of mail 98.7% 98.6%

* D means the day of posting, D+3 means delivery within three working days after the day of posting and D+5 means delivery within fiveworking days after the day of posting

The international postal networkis interfaced with the Company’snetwork via its exchange postoffices in Prague, Břeclav andCheb. International postaloperation is liberalised in theCzech Republic which means thatother operators may enter thesegment and create a competitiveenvironment. Slovak Post hasremained the most importantforeign business partner of theCompany in the long term.

Successes in internationaloperations

The EU membership of the CzechRepublic has lead to further dutiesof a public postal operator, i.e. theCompany. The Company’s duty isto ensure the general availabilityof high-quality basic services asstipulated by the amendedDirective 97/67/EC of theEuropean Parliament and of theCouncil. For cross-border priorityletter mail within the Community,the directive sets the quality ofservice targets particularly interms of delivery performance.

Česká pošta launches newadvertising and, for thefirst time, it’s not animated

Ogilvy&Mather has prepareda new ad campaign for Českápošta. Its objective is to reinforcepublic perception of the companyas a provider of quality postalservices for one and all. Thecampaign will highlight newfeatures in the product portfolioand in addition to television spotsit also includes press advertisingand below-the-line activities.

ihned.cz, 15 November 2012

As the table shows, the Companywas successful in fulfilling theserequirements in 2012. The qualityof service targets, set by thedirective, were accomplished bothin terms of speed (delivery timeD+3) and reliability (delivery timeD+5). The international quality isevaluated by UNEX, anindependent measurementsystem provided by theinternational Post Corporation forpublic postal operators in EUmember states.

Marketing Communication

In terms of the communicationactivities of the Czech Post, 2012was probably the most powerful in recent history.

Preparation for groundbreakingchanges in the postal market ofletter mail and the ever increasingcompetition on the parcel markethave led to implementation ofactivities aiming to strengthen theCompany’s leading position in thetwo key segments of the postalmarket.

The Great Parcel Revolution –after many years the first CzechPost’s television advertisingcampaign – kicked off in thespring of 2012 to introduce the twoflagship products of the newparcel portfolio – Parcel DeliveryTo Hand which offers customers adelivery to any chosen addressand Parcel Delivery To Post Officefor delivery to the post officeselected by the recipient, e.g. theone close to work. In addition totelevision advertising, other mass media advertising and non-traditional means were used,such as a hot air balloon.

The autumn campaign tostrengthen the brand imagebefore the letter mail marketliberalisation in 2013 was thesecond largest advertisingcampaign in 2012. TV advertisingspots with the slogan “Only CzechPost will deliver your letters justas reliably to big cities as to themost remote places in ourcountry” was so well preparedthat it was even appreciated bysome advertising experts.

Towards Christmas, which is thehigh season for the Company,Czech Post reminded itscustomers about the two newproducts Parcel Delivery To Handand to the Post office byorganising a consumer contest.

Smaller-scale advertisingcampaigns were launched forother services and products of theCompany, such as verification ofdocuments and signatures,additional services for datamailboxes, mobile applications,selected issues of postagestamps, new e-shop or sale ofvignettes.

Call centres

2012 was a historical year for ourcall centres, mainly for thefollowing three reasons:– First of all our call centres

moved to a new location. TheCompany’s own premisesreconstructed for the needs ofthe Census project in 2011were used instead of officespace leased from privatecompanies. This led tosignificant savings ofoperational expenses for rent.

– A transition to new technologydeveloped by Cisco Systems,Inc was of particularimportance. The state-of-the-art technology is based on VoIP.Cisco Unified CommunicationsManager system is used forvoice services is not only usedby the call centre itself but alsoICT call centre unit and SIPOdivision. Cisco Unified EmailInteraction Manager (CEIM)application being part of thesystem has been introduced forgroup e-mail handling.

– The long planned operationalcall centre of Czech Postconcept was commenced. Itspractical application means asignificant step in the dynamicmanagement and operations ofthe call centre and it is animportant prerequisite forfuture quality improvement ofservices provided to internaland external customers.

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As shown later by a conductedresearch, new services andintensive promotion activitiescontributed to the sudden shift inpositive Czech Post brandperception. In order to strengthenthe relationship between thepublic and Czech Post, theCompany decided to become anadvertising partner of thecountry’s most popular sport –football. It chose to partner thetop football cup championship –The Czech Post Cup – even smalllocal clubs are able to participatein it, so is has both a local andnationwide effect.

The Company did not fail to keepup with development andaccessibility of data services formobile phones and developed itsown mobile application whichenables its users to track theirmail online, find the nearest postoffice or a needed postcode.

The Company is aware if itsobligations arising from the basicquality requirements set out bythe Czech TelecommunicationsOffice – up-to-date cataloguesdescribing services offered by theCompany as well as new booklets‘How to wrap and address mailproperly’ (beyond the compulsoryscope) were made available foruse at any post office.

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Human resources

Significant effects on the employment

2012 was the last year before the fullliberalisation of the postal market whichwas planned for 1 January 2013. Czech Postused it to complete the administration andIT rationalisation and to optimise thelogistics networks, especially by creatingdepots and centralising services.

There were also minor changesmade in the branch network. Theleast effective post offices werereplaced by operations: Partner orService Point. This action resultedin closing some of the post officeswhich is reflected in the decreasednumber of employees andreduction in personnel costs.

As at 1 July 2012, the new Brachof ICT services was established inaccordance with decision No. 224of the Government of the CzechRepublic from 4 April 2012. TheBranch’s mission is to provideservices for state (public)administration.

Employee structure

Due to the above stated, incomparison to 2011 the number of employees was reduced by1,039 persons (i.e. 3.1%). Themajority of staff made redoundedincludes: postmen, support(especially administrative) andlogistics personnel.

The full-time equivalent number of employees in 2012 was 32,163.

Postmen Counter clerksLogistics personnelOperationsbackground

The number of employees in2012 according to professionalgroupsOf the total number of employees(FTE), 78% were professional staff(postmen, counter clerks, logisticspersonnel, operationsbackground), 10% were supportstaff (experts, coordinators,support – e.g. transport – IT,professional officers, accountants,professionals and so-calledservices – e.g. warehouseworkers, maintenance workersporters etc.), 11% weremanagement, 1% were traders.

The number of employees in the operating sector in 2012according to extended professional groupsOf the total number of employeesin the professional operationgroup: 44% were postman, 34%were counter clerks, 11% werelogistics personnel, 11% wereoperations background.

ManagementTradersProfessional staffSupport staff

The number ofemployees in 2012according toprofessional groups

The number ofemployees inoperating sector in2012 according toextend professionalgroups

Salary and social policy

In 2012, in the area ofremuneration, the Company was focused on the following:– Application of results-based

pay as the toll for workperformance management, inparticular to achieve thestrategic and business goalsand for customer support.

– Application of tasks-based payfor staff in alternative deliverynetwork, which motivatesemployees to deliver parcelswith high quality and also letsrecord the economic benefits ofthe project.

– Revision of model positionswithin the project Setting of thesystem qualification andrevision of model positions.

Social dialogue

Dialogue with the social partnersis an important part of CzechPost’s communication. Thecontent of the dialogue withbusiness partners include issuesrelated to economic, social,wages, labour, safety and otherconditions governing labourrelations. The communicationprocess is implemented on thebasis of regular meetings andproviding information in an agreedscope. In February 2012, theCompany signed Amendment No. 1of Collective Agreement. TheAmendment includes theagreement with Trade Union onthe increased number ofemployees in the operations area,increase of premiums and financialcontribution to meals (also in thedomestic business trips).

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The social dialog in 2012 was carried out in atmosphere of mutual respect and trustwhich the contributed to preserving socialharmony in the Company.

Česká pošta keepspromise it gave customersin autumn of last year

Back then, the postal service’smanagement in the Ústí Regionannounced that a post officelocated in a shopping center inthe regional capital would beopen for business even onSundays.

ČRo Sever, 9 January 2012

The average monthly salary in2012 amounted to CZK 21,884; it grew by CZK 346 (1.61%)compared to the previous year. Average additional monthlyincome of employees beyond thelevel of salary in 2012 amountedto CZK 1,238 per employee. Thisincome includes supplementarypension insurance benefits, lifeinsurance, meals, recreation,rehabilitation, culture, etc.

These benefits were funded fromsocial costs and the Company’sfund for cultural and social needs.In addition to these financialbenefits, employees also receivedother, non-monetary benefits.These included mainly anadditional week of holiday, a workweek that is 2.5 hours shorterthan the average and wagecompensation for selectedpersonal reasons.

Professional training and development

Employee trainings were mainlyfocused on sales support inrelation to the Company’s strategyto increase revenues from sales of products and the developmentof managerial skills of themanagement employees in theoperations and logisticsdepartment.

As part of professional trainingsprogramme, cashiers and counterassistants of the Company weretrained in accordance with Act No.136/2011 Coll. on the circulation ofbanknotes and coins. Thoseemployees were also trained inthe area of selling governmentbonds and pension savingschemes.

During 2012, implementation ofthe new adaptation processsystem was finalised within thewhole Company.

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In 2012, the project ‘Setting a system of qualification andrevision of types of positions’continued. The project has twomain aims: the first involves (i)setting the European standard ofqualifications for typical postalactivities and (ii) updatingqualification requirements forindividual types of positions inaccordance with the set standard,needs of the Company and labourmarket. The second is to verify thetypes of positions in individualstructural units with regards tothe work performed and, ifnecessary, to reassess theintensity of the work and to set thelevel of salary accordingly. As at of 31 December 2012, 97% ofplanned and 75% of typicalpositions were verified,respectively.

During 2012, preparations foranother annual staff evaluationtook place. It will be held early in2013. Based on the results of theevaluation process, individualmanagers can decide aboutmodifications to scale wages orextension of employees’ workcontracts.

Occupational medicalservices

During last year, occupationalmedical services (PLS) wererevised which each employee isobliged to carry out according tolaw (formerly known asoccupational preventive care). Theaim was to implement new legalrequirements effective from 1 April 2012 and introduce aneffective manageable process.The idea is to achieve a higherquality in the area of occupationalsafety and to eliminate increasedcosts in the maximum possiblevolume and to enhance corporatesocial responsibility.

The solution is to centralise andutilise computerisation fromordering appointments to datainput to the maximum possibleextent. PLS is provided by twocontractors who cooperate withphysicians, so that they guaranteeconsistent quality and availability.

Česká pošta is getting ready for a major change inits logistics strategy. It plans to build 70 depotsthat will replace the current system of 590distribution points for packages and letters.The number of transport hubs will bereduced as well... In this way, theenterprise intends to expedite andstreamline mail delivery.

E15, 13 March 2012

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753

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Security

Within postal services, Czech Postoffers financial services which areactivities with higher riskexposure, which due to itsdiversity cannot be compared withany other financial institution.Providing basic safetyrequirements for smoothoperation of these services andprotection of both workers andclients of Czech Post is the basictask of the Security Policydepartment.

Innovations in security at offices

Security Policy department wasdealing with requirements forsmoothly conducting activitieswith higher risk exposure(financial services – handling ofmoney at counters, transport ofcash etc.) by providing securitymeasures in objects so that allvalid standards for safe handlingand storage of cash are met:– Security improvements

continued in small outletswhich are often targets ofassaults. Following the projectwhich was designed and testrun in 2011, those outlets wereequipped with small camerasystems.

– The newly opened andrefurbished post offices werecontinually equipped with time-lock cash registeres,mobile safes and securityswitches with a number ofsecurity features.

– Gradual replacement ofsecurity equipment wasrealised within the Company.

– Gradual replacement of ten-year-old PZTS (security alarmand emergency systems) wascarried out and CCTV at TOP100 and TOP 1000 offices aswell as specialised outlets(SPUs, administration buildings etc.).

Crisis planning

Crisis planning (CP) in a generalsense includes a range ofmanagement activities, analysisand assessment of security risksas well as planning, organising,implementing and controllingactivities performed in connectionwith preparation for possible crisissituations (KS) described in ActNo. 240/2000 Coll., Crisis Act, andAct No. 222/1999 Coll., onEnsuring Defence of the CzechRepublic.

Czech Post as the subject of thecritical infrastructure under theAct on crisis management, asamended (see Act No. 240/2000Coll. §2 letter k) prepared a“Crisis Preparedness Plan forcritical infrastructure entities”(hereinafter PKPSKI) includingemergency preparedness plans of155 elements of criticalinfrastructure.

On 18 September 2012, the finalaudit by the Ministry of Trade andIndustry was carried out and theconclusion was that theprocessing of PKPSKIdocumentation required nofurther adjustments and it wasrecommended for approval by thestatutory body of the Company.PKPSKI was approved by thesignature of the Director Generalof Czech Post on 2 October 2012.

In relation to the approved PKPSKIin order to ensure preparednessand crisis management within thescope applicable to the Companyat the threat of a crisis situation inthe Czech Republic after theannouncement of a state of risk ora state of emergency or a state of danger or state of war and following the decision RO-302/2012/DG (“Rules formanagement of crisis situations”)with a signature of the DirectorGeneral of Czech Post, dated 30 January 2013 the “Status of thetask force of Czech Post,” and“Rules of Procedure of the taskforce of Czech Post” wereapproved.

The following extraordinary eventsof crisis character (MUKCH) werenoted in 2012. The occurrence waslower than in previous years:– MUKCH represented by

technological failures relatedmostly to water network faultsand faults in the electricalsystem.

– In the category of hazardousshipments it was mainlyrelated to damage of thepackaging of chemicalsubstances leakages fromparcels and explosives threats.

– An extraordinary incident wascaused by weather conditionswhen heavy rain causedflooding of a post office, andsevere frost which led to a hydrant bursting at the backof the building.

– In the area of crime an incidentof selling adulterated alcoholoccurred. It was sold by anentrepreneur who sent itthrough an online store.

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Internal audit

In 2012, the internal audit performed itsactivities in accordance with therequirements set by the internationalstandards for the Professional Practice of internal auditing and the Company’sinternal audit statute.

This position in the organisationalstructure warrants theindependence of internal auditorsfrom the audited activities andorganisational units. The requiredobjectivity of audit activities thatare conducted by internal auditorsis also guaranteed by strictcompliance with the provisions ofthe internal audit statutes and thecode of ethics for internalauditing.

The supervision of the activity andresults of the internal audit werethe responsibility of the internalaudit committee as an advisorybody to Director General.Members of the committee meetto discuss the results of allinternal audits and submit them toDirector General.

The primary basis for the activitiesconducted by internal audit in2012 was the internal auditactivities plan approved by theDirector General. The planincluded 18 audits and 1 monitoring. Th plan was fulfilledon a timely basis. Three otheraudits were carried out asrequested by the ManagementBoard of the Company.

The results of each audit werecontained in the final audit report.Each report contained adequaterecommendations on how toremedy the defects found. Allfindings were discussed with thechief executive of the auditedorganisational unit and submittedfor examination to the internalaudit committee and finally theDirector General. Approvedrecommendations from each auditwere included in a correctivemeasures plan which setsconcrete tasks with time limitsand the names of chief executivesresponsible for removing thedefects found. By realising eachcorrective measures plan, therewere improvements applied to thequality of the Company’sadministration and management,its activities and products offeredimprovement of internalmanagement and controllingsystem or risk managementprocess and their potentialelimination. The quality andbenefits of internal audits wereassessed by internal users asbeing considerable and the qualityand understandability of auditreports was satisfactory and theaudits contributed towardsimproving the Company’sprocesses and operations.

Apart from audit and monitoringservices, the internal audit alsoprovided consultancy andcooperation to other chiefexecutives and organisationalunits and collaborated with theexternal auditor, mostly in the areaof information in respect of theresults of the audit activities thatwere conducted.

In relation to the understanding ofinternational standards, internalaudit also performed otheractivities, such as assessments ofthe management and controlsystems, levels of risk control,evaluation and communication of the results of audit services,implementation of the Internalaudit quality assurance andimprovement programme,professional education of auditors, etc.

Hurrah, off we go to thepackage machine

No more waiting in long lines atthe post office, or for the lettercarrier to ring the doorbell athome, when you’re supposed tobe somewhere else. Česká poštais coming out with new servicesdesigned to make life easier,especially for people with jobsand other pressing duties. Oneof these, called Balíkomat (thePackage Machine), enablespeople to pick up packages fromself-service lockers at any timeof the day or night.

Český rozhlas Ostrava,

9 February 2012

Overall, the internal auditactivities carried out throughout2012 contributed towards:– securing functionality of the

Company’s new products,– improved quality of the services

provided by the Company,– constant fulfilment of the

quality and securityrequirements on certifiedservices,

– cost-cutting in respect ofcompulsory audits and certainother activities,

– improved level of the auditedprocesses and activities,

– better efficiency of themanagement activity andcooperation betweenorganisational units of theCompany,

– identification of the causes ofrisks and measures leading totheir elimination,

– stronger preventativemeasures against fraud anddamage,

– assured guidance in controlactivities, and

– better efficiency of themanagerial and professionalcontrol.

In 2012, the quality assurance andimprovement programme wasalso prepared. As part of itsannual evaluation, its resultssupported the statement:“Conforms with the InternationalStandards for the ProfessionalPractice of Internal Auditing” inthe meaning of standard no. 1321.The total realisation of theprogram is 98% which, accordingto set criteria, represents to a verygood quality of internal audit.

Risk management

The risk management systemplays an integral role in themanagement process of theCompany. Its aim is to assumeresponsibility for creatingnecessary conditions forconscious risk acceptance andefficient management of businessrisks which elevate and exist inthe dynamic external businessenvironment and extensiveinternal changes of the Company.The aim is to contribute towardsmanaging existing risks,identifying new ones andminimising their effect on theCompany’s operations.

Individual activities related to riskmanagement are consistently setout in the guidelines on riskmanagement and guidelines forrisk management in the ISMS.Tasks described in this controldocumentation are mainly securedby the owners of risks incooperation with the riskmanagement department ofinternal audit and riskmanagement. The RiskManagement Department isresponsible for mentoring, forcreating conditions necessary foreffective and efficient riskmanagement and its organisation.Risk management itself is, inaccordance with the usualpractice and internal controldocumentation of the Company,secured by each risk owner.

In 2012, the Company identifiedand achieved the following goalsin the area of risk management:– performing detailed assets

identification (for each risk),– updating risk owners in

accordance with organisationalchanges,

– implementing and performingcontrols of origin anddevelopment of risk causes andmonitoring of influence ofthose causes on riskevaluation,

– providing new owners of riskswith information ondevelopment of risk within theirresponsibility and support inthe process of their evaluation,

– providing support withidentification and evaluation ofnew risks at occurrence,

– providing support toorganisational units withinISMS at implementation ofguidelines, and

– publishing of the Company’sbook of risks as at 31 December 2012.

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The Company’s Book of Risks for2012 was prepared by the RiskManagement Department basedon updated information on risksthroughout the year; identificationand revaluation of all risks incollaboration with the identifiedrisk owners. A total of 54 riskswere identified and managedwithin the Company as at 31 December 2012, with impactvalues ranging between CZK 50 thousand and more thanCZK 100 million and incidencerates ranging from very low to veryhigh. There was a decrease in thenumber of significant riskscompared to 2011 due tomeasures taken for their effectivemanagement. As at the end of2012, 13 risks were classified atthe level of remaining risks, 39 atthe level of acceptable risks, and 2 at the level of significant risks.None of the risks identified withinthe Company in 2012 achieved thelevel of critical risks. The Book ofRisks contains individual riskcards and maps divided intocategories, as well as a separatechapter on significant risks with the obligatory plans formanaging them.

The cooperation betweenindividual risk owners and theRisk Management Department in2012 can be consideredsuccessful. After eachorganisational or personnelchange, an update of risk ownerswas always conducted and allnecessary support was given tonew risk owners in order toacknowledge them with individualrisks including help with possiblerevaluation of those risks. For allrisks identified within theCompany, the effectiveness ofmeasures taken wassystematically monitoredincluding their influence on thenew evaluations of such risks.Reports on risk managementstatus and measures taken,especially for significant risks,were presented to the Company’smanagement and SupervisoryBoard throughout the year.

In Liberec, the ČeskáPošta Hockey Cup 2012showcases the mostpromising up-and-coming talents in Czechhockey

With financial assistance fromtheir general partner, Českápošta, on 26–29 December 2012the Liberec White Tigers willhold the 2012 Česká PoštaHockey Cup, one of the biggestyouth hockey tournaments inthe Czech Republic. Thetournament, which includes twocategories – for younger andolder players, respectively – willbe held in two halls in Liberec:Tipsport Arena and SvijanskáArena. All told, ten of the CzechRepublic’s top teams willparticipate.

RTM TV, 21 December 2012

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W I T HDEBT

Česká pošta to offer assistanceto those in debt

...through a new service entitledResidential Debt Collection (DINO). ...

“It’s an attempt to help the weak, toensure that certain strong players don’ttake advantage of their situation,” said

Minister of Finance Miroslav Kalousek.

novinky.cz, 18 October 2012

S

Environmentalprotection

The operations of Czech Post onlyhave a very slight impact on theenvironment. Emissions from theoperation of trucks and passengercars as well as from the operationof stationary combustion sourcesrepresent the main effects.

The Company’s strategy in respectof the ecology primarily focuses oncompliance with legislation in allareas of environmental protectionwith a view to precludingenvironmental hazards andminimising any ecological risks.

These activities are then apparentmainly in the introduction ofalternative fuels for fleet. Therewas a significant increase in thenumber of vehicles that aredesigned to burn CNG in 2012.

In order to reduce the energyperformance of buildings and theproduction of emissions, windowswere replaced in 12 buildings in 2012.

One extraordinary situation arosein 2012 in connection with theoperation of Czech Post when anarea was polluted with leakingfuel. The resulting pollution was ata local level and a properremediation was realised in theaffected area.

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Electric cars find a placein city logistics

Česká pošta has begun deliveringmail in Prague using a PeugeotiOn electric car. The car is on loanfor operational testing from ČEZ,which also provided one chargingstation. In other countries, electriccars are already seeingwidespread deployment in maildelivery. Certain employees ofČeská pošta in Prague can lookforward to driving an electric caron a daily basis – while deliveringmail in the vicinity of thecompany’s headquarters onJindřišská Street.

Logistika, 4 September 2012

Kulhánek and engraved by MilošOndráček. In second place therewas a stamp with the name JanKupecký – Self-portrait withfamily, which is an engravedtranscription by Martin Srba of theeponymous painting. Third placegoes to the unusual andtechnically perfect Virgin Mary ofSvatý Hostýn. In addition to thefour colour offset printing, thereare also three colours engravedfrom steel plates – we would liketo especially mention the goldencolour which is characteristic forpanel icons.

Philately

Stamps in 2012

In 2012, Czech Post, acting on behalf of thestamp issuer, i.e. the Ministry of Trade andIndustry of the Czech Republic, issued atotal of 29 commemorative stamps withfirst day covers and commemorativehandstamps, of which three stamps cameout as souvenir sheets printed from steelplates.

Commemorative stamps in 2012 (in CZK)

Tradition of Czech Stamp Design: Josef Liesler 10 Personalities: Jiří Trnka (1912–1969) 10 150th anniversary of the establishment of Sokol 14 Beauties of Our Country – Kuks 14 Beauties of Our Country – the statue of Matyáš by B. Braun in Kuks 18150th anniversary of Union of Czech Mathematicians and Physicists 10 Personalities: Johann Gregor Mendel (1822–1884) 20 500 years of Hebrew printing in Prague 25 100th anniversary of Czech scouting 21 Europe – a common theme: An invitation to publishing country 20 Technical monuments: Bata channel 10 Prague castle – Tintoretto 30 70th anniversary of the massacre at Lidice 20 70th anniversary of the Ležáky massacre 10 100th anniversary of the coronation of the statue of Virgin Mary of Svatý Hostýn 21 Summer Olympics and Summer Paralympics in London 2012 20 Plant growing – beauty of orchids 10 Plant growing – beauty of orchids 14 Plant growing – beauty of orchids 18 Plant growing – beauty of orchids 20 Traveller Alberto Vojtěch Frič (1882–1944) 10 800 years since the publication of the Golden Bull of Sicily by King Frederick II. 49 World post day – Postal Museum in Vyšší Brod 26 Legends of the Masaryk circuit in Brno – František Šťastný (1927–2000) 18 Legends of the Masaryk circuit in Brno – Louis Chiron (1899–1979) 25 Works of Art on Postage Stamps: Kamil Lhoták (1912–1990) 26 Works of Art on Postage Stamps: František Kupka (1871–1957) 2 x 30 Works of Art on Postage Stamps: Jan Kupecký (1667–1740) 32

Czech Post produced thetraditional issues including someold favourites in the area of stampdesign, such as Tradition of CzechStamp Design, Personalities,Beauties of Our Country, Europe,For Children, Works of Art onPostage Stamps. In the 20thannual competition to choose themost beautiful Czech stamp in2012, the public voted for the mostbeautiful stamp and chose “800 years since the publication ofthe Golden Bull of Sicily by KingFrederick II” with the face value ofCZK 49. The stamp was designedby graphic designer Oldřich

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ANNUALREPORT2012

Česká pošta reports thatthe world’s automobilesare in high demand atpost offices

Stamps that will definitely catchyour eye await you in the“Václav Zapadlík – the world’sautomobiles” stamp book. Theunique stamp book is sellingextraordinarily well, withdemand running especially highamong collectors and lovers ofhistorical automobiles.

Parlamentní listy,

3 November 2012

Definitive stamps and postalstationeriesA total of seventeen definitivestamps, eight commemorativepostcards, eight picture cards andspecial New Year envelope withprepaid stamp were issued byCzech Post in 2012.

The biggest success was the firstplace in the competition WIPAGRAND PRIX 2010 which wasawarded to an offset definitivestamp “Postal Museum in Prague”with the nominal letter value “A”.The stamp was designed by theSlovak author, Professor DušanKállay and drawn by designer andengraver Miloš Ondráček.

Another major achievement wasthe third place in the category ofstamps with the theme “musicaround the world”. It was given toMarina Richterová and her stamp“W. A. Mozart” with nominal lettervalue “E”.

Furthermore, Czech Post issuedthe last two stamps from the verysuccessful self-adhesive issueQuatrefoil – “Quatrefoil in theservice of the King” (to theeponymous movie). Subsequently,the booklet “Václav Zapadlík –World Cars” began a new series ofstamp booklets. It includes sixstamps with the nominal value “E”(the actual value of CZK 20) thatwill continue in coming years.

Personalised stampsA pilot project of “Personalisedstamps” was launched in August2012. They are intended for privateentities that want to have theirown theme on a stamp.

Personalised stamp is a personalised literal definitivestamp which consists of anoptional image of the client and a part containing fixed mandatoryattributes. These are the name ofthe state Czech Republic, microtext CZECH POST • CUSTOMSTAMP and literal expression ofthe nominal value of stamp in theform of symbols – A (the actualprice for Ordinary domestic letters– standard to 50 grams) or E (theactual price for Priority ordinaryletters abroad to 20 grams –European countries).

From August to December, CzechPost accepted 11 orders andissued 66 personalised stamps inthe total amount of CZK 2,130,599.

Commemorative handstampsIn 2012, Czech Post prepared andused a total of 59 commemorativehandstamps. In addition totraditional handstamps such asChristmas, Easter, and Valentine’sDay, commemorative handstampsto celebrations, anniversaries andphilatelic events were issued –such as the Tribute to BedřichHusa – 86 years, Blessing of NewBells, Harley-Davidson ClubPrague, Dana Zátopková and etc.Several handstamps were alsoissued for the traditional trade fair “Collector”.

The handstamp with motive ofBozi Dar-Jesus with a dovedesigned by Maria Svobodovábecame the winner of the annualmost beautiful commemorativehandstamp for the fourth time.The winning handstamp received365 from a total of 1,291 votes.

Further, a total of 33 commemorative stickers forregistered letters (R-stickers) and27 APOST stickers with anadditional print were issued.

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ACTIVITYREPORT

The post office willcancel stamps using anOlympic-themed handstamp

The cancellation will use themotif of a rubber boot, whichwas the Czech team’s symbol atthis year’s Olympics. Each year, Česká pošta prepares anumber of hand stamps tohonor various occasions,including accomplishments ofthe nation’s athletes. Of course,there is a rule according towhich no living persons, exceptthe President and the Pope, mayappear on a postage stamp. Upuntil this year, however, therewas also a rule that the postalservice would issue at least onestamp commemorating a sportin which Czech athletesachieved worldwide renown,and this stamp would then becancelled with a special handstamp commemorating theparticular event. In this way,athletes such as Aleš Valenta,Kateřina Neumannová, andMartina Sáblíková haveappeared on postage stamps.

Finanční noviny, 17 August 2012

Postal Museum

The Postal Museum, which houses almost500 years of mementos of the organisedpostal industry in the Czech Republic,entered its 94th year of existence as a fixed, integral part of Czech Post, state-owned enterprise.

It contributes to the Company’smarketing activities, promotesstamp design and represents theCompany both locally andinternationally. The PostalMuseum is a member of theInternational Association ofTransport and CommunicationsMuseums (IATM), an activemember of the Conference ofEuropean CommunicationsMuseums (CECOMM) and, as oneof eleven selected postalmuseums worldwide, belongs tothe Club Elite de la Philatelie deMonte Carlo, Monaco. In theCzech Republic, it participates inthe work of the Association ofMuseums and Galleries, andcollaborates with the Union ofCzech Philatelists, including,among other things, within theframework of the Union of CzechPhilatelists’ Association of Friendsof the Postal Museum.

The museum has long-termexhibitions in Prague and in itsbranch in Vyšší Brod, where thehistory of post andtelecommunications, from theirvery beginnings up until thepresent day, is presented in theabbey of the former CistercianMonastery in a space ofapproximately 1,800 squaremeters. Apart from temporaryexhibitions, held in Prague as wellas in Vyšší Brod, it participated ina number of exhibitions both inthe Czech Republic and abroad.By law, it is entrusted to approvethe export of articles from thefield of the history of the postalindustry and stamp design, andserves as a Czech centre forstamp exchange within theframework of the UPU. One of themuseum’s important functions isthe provision of library andconsultancy services toresearchers, students and theCompany’s employees.

Exhibitions

Temporary exhibitions at thePostal Museum in Prague – “Jaroslav Němeček – The

Čtyřlístek Comics Not Only onStamps”23 November 2011–26 February 2012

– “Promotion of post office of theFirst Czechoslovak Republic”29 February 2012–22 April 2012

– “Post office by TomášVosolsobě”25 April 2012–17 June 2012

– “Václav Sivko – Pavel Sivko.Landscape graphics – stampand graphic design”20 June 2012–16 September 2012

– “Post office and postal bankingin the Czech Republic”19 September 2012–25 November 2012

– “Kamil Lhoták – On the bike, onthe motorcycle and up in the air”28 November 2012–3 February 2013

A commemorative postcard withadditional print marked each ofthese events, and acommemorative handstamp wasavailable at a temporary post-office counter set up to mark theoccasion.

Temporary exhibition at thePostal Museum in Vyšší Brod– “14th Annual Exhibition of

Artwork by Students at theKaplice-Based ElementarySchool of Arts in Vyšší Brod” 14 June 2012–2 September 2012

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ANNUALREPORT2012

A Czech stamp won the Grandde l Exposition WIPA in Vienna,the most widely recognizedinternational postage stampdesign competition in the world.The winning entry was a stampentitled “Postal Museum” bySlovak artist Dušan Kallay,whose design was engraved byMiloš Ondráček. Lichtensteincame in second, and Slovakiawas third. “The CzechRepublic’s victory in thecompetition underlines the highquality of postage stamp designin our country. While a numberof competing postal servicesentered miniature sheets, whichare much harder to produce, wewon the competition with anordinary postage stamp...” saidBřetislav Janík, Česká pošta’sDirector of Stamp Design.

Právo, 10 October 2012

Exhibitions – externalcollaboration within the CzechRepublic– “First Ladies - Fate, Mission,

Ordeal?”; Central BohemiaMuseum in Roztoky, 30 September 2011–15 March 2012

– “Ferdinand I. Dobrotivý and artof his time”, Prague CastleAdministration, The PragueCastle, 1 June 2012–9 September 2012

– “Monarchy”, The NationalMuseum’s new building, 13 December 2012–9 June 2013

– “Lidice is alive”, The NationalArchives of the Czech Republic,Prague 4 – Chodovec, 11 May 2012–27 June 2012

– “Cistercians’ Plasy in 2012”,The monastery in Plasy, 12 June 2012–17June 2012

– “Illustrator Cyril Bouda”,Regional Museum in Žatec, 21 June 2012–30 September 2012

– Exhibition of work of art byViktor and Maria Stretti, Themonastery in Plasy, 27 September 2012–30 September 2012

– “Prague Castle PhotographicArchives”, Museum of Beskydyin Frýdek-Místek, 20 September 2012–28 October 2012

– “Oldřich Kulhánek – stampdesign and graphic arts/MartinŘíha – photographs fromworkshops”; Museum ofKrkonoše in Jilemnici, 5 October 2012–11 November 2012

– “Zdeněk Ziegler – For eyesonly”, Museum Kampa inPrague, 6 September 2012–7 October 2012

Social events in the PostalMuseum

– dedication ceremony for thestamp for the 150th anniversaryof the founding of the Union ofCzech Mathematicians andPhysicists, 7 March 2012

– announcement of the results ofthe 2011 most beautiful Czechstamp awards held by CzechPost, state-owned enterprise,magazine Filatelie and thePrávo daily magazine, 29 March 2012

– inauguration of monograph“Oldřich Kulhánek: Stampdesign”, 23 March 2012

– Prague Museum Night, 9 June 2012–10 June 2012

– event to celebrate the 94thanniversary of establishment of the Postal Museum, 18 December 2012

Collaboration with theUnion of Czech Philatelists

– 6th Day of Czech Philately; 8 November 2012: the leadingdesigners of Czech stampsMiloš Ondráček, Václav Fajt andMartin Srb signed theirautographs, dedicationceremony for the publication“Postal clothing in the Czechlands”, guided tours,presentations

Collaboration with dedicatedCzech Post departments

Marketing– selection and scanning of

background documents(photographs, maps, imprintsof handstamps) for preparationof a new-style design ofrefurbished post offices

– intranet magazine DOMINOused for regular updates ofinformation on the PostalMuseum’s activities.

– cooperation at the exhibit “ArtFor Peace” in the vestibule ofthe main post office atJindřišská street in Prague

– handover of visual materials forthe production of Christmaspromotional items of CzechPost

Stamp Design and PostFila– handover of outline drawings

and graphic designs preparedfor new Czech stamps andcommemorative postcards

Communication– collaboration on the

preparation and holding of a 2012 Summer PostalDetective Competition that tookplace in the period from 1 Julyto 31 August 2012

– informational articles about thehistory of post office andactivities of Postal Museumpublished in Poštovní Noviny

Collaboration outside the Company

Postal Museum of Slovenskápošta, a.s. – searching andscanning of original designs ofCzechoslovak stamps for theneeds of Slovenská pošta, a.s.

Film and media collaboration

– Czech Television’s ČT24 –interview dedicated to the mostbeautiful stamp of the world

– Czech Television’s ČT24 –interview dedicated to thehistory and present ofChristmas postcards

– Czech Television’s ČT24, TVMetropol, Czech Radio’s ČRo 2and Czech Radio’s ČRoLeonardo – interview dedicatedto the exhibition “Promotion ofpost office of the FirstCzechoslovak Republic”

– Czech Television’s ČT1 –interview dedicated to postalservices through pneumatictube

– Czech Television’s ČT1 and ČT24 – news report dedicatedto the exhibition “Kamil Lhoták –On the bike, on the motorcycleand up in the air”

– TV Metropol and Czech Radio’sČRo 2 – interview dedicated tothe exhibition “Post office andpostal banking”

– daily newspaper Právo – visualand text information for anarticle dedicated to New Year’spostal books

– weekly magazine Naše rodina –visual and text information foran article dedicated to theexhibition “Kamil Lhoták – Onthe bike, on the motorcycle andup in the air”

– movie Něžné vlny – handover ofvisual materials (interiors ofpost office)

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ACTIVITYREPORT

Publications

– Kramář, J.: Čechami a Moravouza starými poštami (pokračováníz roku 2011). In: PTN Echo, No. 3–4/2012, p. 22–23.

– Kramář, J.: Dragoun, Václav(heslo ve slovníku). In:Biografický slovník českýchzemí. Historický ústav AV ČR2012, p. 353–354.

– Kramář, J.: Dvousetletý příběhNapoleonových saní (1812–2012).In: Přísně tajné, No. 5/2012, p. 136–141.

– Kramář, J.: Poštovní odívání v československé a českéznámkové tvorbě. In: Filatelie, No. 12/2012, p. 2–6.

– Kramář, J.: Poštovní muzeum a jeho sbírkotvorná činnost v letech 1939–1970. In: Paginaehistoriae, č. 20/1. Národníarchiv, Praha 2012, p. 131–174.

– Kramář, J.: Poštovní odívání v českých zemích. II. svazek 25. dílu Monografiečeskoslovenských a českýchpoštovních známek a poštovníhistorie. Pofis, Praha 2012.

– Kramář, J. – Mach, P.: ZnámkaČeské pošty vyhrála Grand Prixde l´exposition WIPA Vídeň2012. In: Geodetický a kartografický obzor, No. 3/2013, p. 66–67.

– Kramář, J., Kavka, T., Jahoda,M., Říha, M.: KlenotyPoštovního muzea. 33 příběhůsbírkových předmětů. Českápošta, s.p., Praha 2011.

– Jahoda, M.: Dvůr na cestách.In: Ferdinand V. Dobrotivý a umění jeho doby (katalogvýstavy). Správa Pražskéhohradu, Praha 2012, p. 68–69.

– information on temporaryexhibition and events of PostalMuseum published in themagazine Filatelie and Poštovnínoviny

Lectures

– “Postal uniforms in theCzechoslovak and Czech stampdesign” – lecture on the 6thDay of Czech Philately, 8 November 2012

– Guided tours of Postal Museumfor students of primary andsecondary schools

Services for researchers

Research in stamp design andphilately– A total of 1,468 sets of

Czechoslovak and CzechRepublic stamps includingdocumentation related toproduction processes (graphicdesigns, colour test stamps,engraved transpositions andprinting plates) were availablefor study by visitingresearchers in the PostalMuseum’s study room.

– number of research visits: 38– Consultancy was also provided

by means of electronic mailand phone.

– additional imprints ofcommemorative handstampson cards: 7

Research in Post andTelecommunication History– Researchers could visit the

Postal Museum’s study roomor contact museum staff viaemail or by phone. The studyroom offered documents andphotographs from themuseum’s collections, booksand telephone directories.

– Number of visiting researchersand research activities: 255

– Hoffman, P.: “Dějiny státníautobusové dopravy v Českýchzemích a na Slovensku” –provision of pictures anddocuments for the 2nd volume(Postal Buses 1915-1933).

– Králík, J.: “Automobily a motocykly” – Provision ofpictures and consultancy

– Padevět, J.: – provision ofpictures and documents for a publication dedicated toPrague’s addresses whereresistance fighters werearrested during theProtectorate of Bohemia andMoravia

– Míka, Z. – provision of picturesand documents related to thehistory of Prague’s streets

– Kalinová, G. provision ofpictures and documentsassociated with postal workersburied at Malostranský hřbitovin Prague 5

Postal Museum’s collection

New acquisitions: 2,397 inventorynumbersTotal inventory according to theAct No. 122/2002 Coll.: 11,797 units(inventory numbers)

Donations13 donations

Purchases– postal parcel truck, 1950’s of

20th century– diploma – graphics “Čestné

uznání III. stupně ministerstvaspojů a ústředního výboruSvazu zaměstnanců spojůStavební správě spojů Praha za výsledky v celostátnímsocialistickém soutěžení v I. čtvrtletí 1957” by Emil Kotrba

– women’s postal uniforms partsfrom 1960’s – 1970’s of 20thcentury: three blue hats called‘garrison cap’ (two in summerand one in winter modification)from 1970’s of 20th century, twogray-blue jackets from 1963 to1975 and one light blue shirt –Model 1975

– flintlock pistol, 18th century– graphics “Die kleine Post – La

petite Poste”. Original etchingby Hieronyma Benedicti,Vienna, Artaria, circa 1790

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ANNUALREPORT2012

Maintenance of collections andrepositoriesUpdated list of collectable itemson display and in offices of thePostal Museum in Prague and inthe depositary of Postal Museumin Ostrovec.

Restoration and conservationThree-dimensional collectableitems: 10Stamp designs and outlinedrawings: 34Steel engravings and printingplates: 187

Digitisation Seals and dies: 340 inventorynumbers Digitisation was conducted in thenecessary order in the followingsub-collections of documents:Graphic Design, Drawings,Reproductions; Mail-coachTransportation; Photographicarchives of the Ministry of Postand Telegraph Offices;Photographic documentation ofthe Ministry of Communications;Correspondence, Post OfficeYearbooks; Patents and Circulars;Post Offices; Postal Savings Bank;Postmarks Archived by theInstitute of Postal History.

Promotion

– A big postal detective story – a traditional competition forvisitors of exhibition in PostalMuseum in Vyšší Brod

– Preparation of documentationand selection of pictures for therepresentative publication ofPostal Museum “KlenotyPoštovního muzea. 33 příběhůsbírkových předmětů”

– Conclusion of a marketingagreement with Era PostalSavings Bank

– Conclusion of a marketingagreement with FairlifeMarketing GmbH from Linzwhich promotes leisureactivities in Upper Austria andSouthern Bohemia. PostalMuseum provided visual andwritten materials to catalogueGrenzgenil, which will promotefree of charge the branch ofPostal Museum in Vyšší Brod inyears 2013–2014.

– Promotional magnets withmotives of collectable items ofPostal Museum

– Launching of the Englishlanguage version of PostalMuseum’s webpage

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ACTIVITYREPORT

Postal ombudsman

In 2012, theombudsman wascontacted by 1,221 customers ofCzech Post.

This year, she settled 122 appeals,of which 54 requestedexamination of the results of a previous complaint or claimhandling procedure. Theombudsman confirmed theprevious decision of Czech Post in37 cases, while in the remaining17 cases she upheld thecustomer’s view. A total of 68 appeals concerned new caseswithout previous standardexamination.

17 cases led to therecommendation being made tothe Director General to provide thecustomer with additionalcompensation. The payment wasthen made from a special accountdedicated to settling similarcases. The sum allocated to thisaccount in 2012 was CZK 141,061,out of which CZK 43, 165 (around31%) was paid out in 2012.

An old lady spent nearly a weeklying helpless on the floor in herhouse in the Svitavy area,unable to get up by herself. Inthe end she was rescued by theletter carrier, who heard hercalls for help…

iDnes.cz, 23 March 2012

Visitors and revenues

Postal Museum in Prague (payingvisitors): 2,547Visitors of Postal Museum inPrague with free entry (openings,Czech Post employees, AMG cardholders, Ice Prague, Bambiriáda,Prague Museum Night, socialevents): approximately 2,500Postal Museum in Vyšší Brod(paying visitors): 7,553Visitors of Postal Museum in VyššíBrod with free entry:approximately 650Total paying visitors: 10,100Total visitors: 13,250

The number of visitors to all of thePostal Museum’s exhibitionsincreased by 2,033 or 18%compared to 2011. A slightdecrease (by a 5.6%) occurred atthe Postal Museum in Vyšší Brod,especially due to an ongoingdecline in attendance of culturalheritage events in the region anda large drop of attendance in Julycaused by weather. Conversely,Prague exhibition entitled Prague Museum Night, whichtook place from 9 to 10 June,attracted a record number ofvisitors. The exhibition wasattended by 1,002 visitors in six hours.

Revenues from valuables andgoods in the shop of PostalMuseum shop in Prague and at the branch in Vyšší Brod: CZK 1,887,129. The projectedamount of revenues was exceededby CZK 387,129.

from other activities of Czech Post,especially from those of postal andother commercial character. Forthis purpose the branch ICTservices (or ‘OZ ICT’), (full title:Czech Post, State-ownedEnterprise, Branch Enterprise ICT Services), was establishedbased on the Director Generaldecision from 27 April 2012 (RO-100/2012/DG).

The basic premise of theestablishment Branch EnterpriseICT Services of Czech Post, (‘ČP OZ’) is adoption of the modelpresent in many EU States(Austria, Denmark), where a state-owned organisation that providesICT services to the central stateauthorities was established.

A similar trend can be observed atsome large organisations of thecommercial sector, such as ČSOBand KBC ICT Services, ČEZ a ČEZICT etc.

When procuring ČP OZ, the stateauthorities can apply the procedureset out in §18 paragraph 1 point. e)Act No. 137/2006 Coll., on publicprocurement, as amended, whichallows state authorities to savetime spent on procurement withdemonstrating the economicbenefits. Ways of achievingeconomic benefits are listed inAnnex 1.

With the increasing importance ofeGovernment and electroniccommunication in general, ICTprojects in public administrationare increasing in importance from

Česká pošta, s.p. (Czech Post) is astate-owned enterprise as definedby The State-owned EnterpriseAct no. 77/1997 Coll., as amended(‘State-Owned Enterprise Act’), inrelation to which the InteriorMinistry acts at the Founder.

In accordance with the CzechParliament resolution dated 4 April2012 No. 224 on Information on theprovision of selected services ofinformation and communicationtechnologies used by the publicadministration (the “GovernmentResolution No. 224”), Czech Post isselected to provide supplies andservices of information andtelecommunication technologieswithout public procurement as setout by the exemption for so-calledinternal announcements accordingto §18 paragraph 1 point. e) Act No. 137/2006 Coll., PublicProcurement, as amended (the“Public Procurement Act”).

The legitimacy of this procedurewas assessed by the Office for theProtection of Competition (“theOffice”). As part of individualnegotiations, a requirement for thefunctional separation of thesupplier’s unit subject to theprocurement performance wasraised This procedure isdocumented in previouscorrespondence between thecontracting authority and the Office.

On the basis of ongoingconsultation and comments fromthe chairman of the Office, whereappropriate risks were addressedas well as the need for theirelimination through concretemeasures and procedures in orderto apply the “in-house” exception,the contracting authority moved onto amend the basic documents ofCzech Post. In order to eliminaterisks and objections in the area ofpublic procurement, businesscompetition and state support,Czech Post initiated theestablishment of a specializedbranch and with a change made toits Statue, Articles of Incorporationand Rules of Organisation, CzechPost adopted at all levels of a set ofeffective and internally bindingadministrative and organisationalmeasures which ensure that theservices described in GovernmentResolution No. 224 and requestedby Czech Post without a publictender, on the basis of §18paragraph 1 point. e) of the PublicProcurement Act will be on thefactual, legal, personnel, material,financial, organisational andfunctional side strictly separated

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BRANCHENTER-PRISE

the safety point of view. The numberof projects and operated systemshas a critical impact on theoperation and safety of the state:Bearing this trend in mind, the riskthat a commercial entity willimplementation of sensitive entirelyon its own will increase. For ICTprojects and systems working withpersonal data, as well as forprojects dealing with the state’scritical infrastructure, it is necessaryto always carefully analyse theownership structure of the supplierwhen implementation is to be doneby a commercial entity (includingany changes in the duration of thecontract) so that national securityinterests are not put at risk. Basedon the Czech Parliament resolutionNo. 935 from 22 December 2010the government approved draftdecree No. 432/2010 Coll. dated 22 December laying down thecriteria for determining theelements of critical infrastructure(e.g. ITS). Government RegulationNo. 432/2010 Coll. is shown inAppendix 9.

Given the dynamic development ofthe ICT market it is also necessaryto take into account the risk of thesupplier or operator of criticallyimportant public serviceinformation system getting intoeconomic difficulties which canhave a major negative impact onthe system.

ČP OZ responds to both theserisks. As an entity fully controlledby the state, it eliminates thesecurity risk from the leaking ofsensitive information to the

Mission The mission of ČP OZ is to be ahigh-quality and reliable supplierof comprehensive ICT services.

Vision

ČP OZ’s vision is to become a strategicpartner of government entities (‘theCustomers’) in the implementation of ICTprojects and a high-quality and reliablesupplier of ICT services, to contributetowards the improvement of quality andeffectiveness of public administration’soperations and to collaborate on thedevelopment of eGovernment of theCzech Republic to the satisfaction ofcustomers and citizens.

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BRANCHENTERPRISE

Although ČP OZ’s financing isstrictly separate, it will contributeto increase revenue and improvethe positive economic result ofČeská pošta, s.p. within itsactivities. The aim of ČP OZ is tocontribute to the overalldevelopment and operations of theCompany.

owners, whose interests are notconsistent with the securityinterests of the Czech Republic.With regard to its statute and theorganisational structure, ČP OZ islargely resistant to marketfluctuations.

ČP OZ is therefore naturally intenton developing and strengtheningits current focus on “sensitive”government ICT projects, both inthe area of operation anddevelopment of the criticalinfrastructure of the state andhosting or housing systemscontaining personal data. Tofurther develop this strategic goal,ČP OZ intends to obtain relevantsecurity certification.

One of the main causes of failure of ICT projects of the publicsector is uncontrolled projectmanagement. On the publicauthorities’ side, they often lacksufficient competence andcapacity; commercial entitiesoften lack sufficientunderstanding of the internalorganisation, processes andobjectives of public administration.ČP OZ therefore intends to furtherdevelop the quality for managingICT projects administered by thestate. These capacities will bebased on both adequate expertiseand experience in managing ICTprojects and detailed knowledge ofthe environment and the publicsector environment. Vendormanagement skills as specificdisciplines will also be furtherdeveloped.

ANNUALREPORT2012

fINANCIALSTATEMENTS

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FINANCIALSTATEMENTS

Independent auditor’s report on the financial statements 70financial statements 72Notes to the financial statements 761. General information 772. Basis of preparation 823. Accounting policies 824. Intangible and tangible fixed assets 905. Inventories 946. Receivables 947. Provisions 948. Short-term financial assets 959. Equity 9610. Provisions 9711. Long-term liabilities 9812. Short-term liabilities 9813. Bank loans and overdrafts 9914. Accruals and deferred income 9915. Income tax 10016. Leases 10117. Assets and liabilities not recorded in the balance sheet 10118. Contingent liabilities 10219. Revenue analysis 10220. Employees 10221. Related party transactions 10322. Fees paid and payable to the audit company 10423. Entrusted resources 10424. Cash-flow statement 10525. Subsequent events 105Independent auditor’s report on the annual report 106

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ANNUALREPORT2012

INDEPENDENT AUDITOR’S

REPORT

Independent auditor’s report

to the founder of Česká pošta, s.p.

We have audited the accompanying financial statements of Česká pošta, s.p., identification number 47114983, with registered office at Politickýchvězňů 909/4, Praha 1 (“the Company”), which comprise the balance sheet as at 31 December 212, the income statement and cash flow statement forthe year then ended and notes, including a summary of significant accounting policies (“the financial statements”).

General Director’s Responsibility for the Financial StatementsThe General Director is responsible for the preparation of the financial statements that give a true and fair view in accordance with Czech accountinglegislation, and for such internal controls as the General Director determines is necessary to enable the preparation of financial statements that arefree from material misstatement, whether due to fraud or error.

Auditor’s responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Act onAuditors of the Czech Republic, International Standards on Auditing and the related application guidance of the Chamber of Auditors of the CzechRepublic. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The proceduresselected depend on the auditor’s judgment, including assessment of the risks of material misstatement of the financial statements, whether due tofraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation of the financialstatements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of theaccounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation ofthe financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements give a true and fair view of the financial position of the Company as at 31 December 2012, its financialperformance and its cash flows for the year then ended in accordance with Czech accounting legislation.

11 March 2013

represented by partner

Věra VýtvarováStatutory Auditor, Licence No. 1930

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Note Our report has been prepared in the Czech language and in English. In all matters of interpretation of information, views or opinions, the Czech version of our report takes precedence over the English version.

Balance sheet as at 31 December 2012(CZK million)

31. 12. 2012 31. 12. 2011Ref. ASSETS Gross Provision Net Neta b 1 2 3 4

TOTAL ASSETS 39,018 12,252 26,766 21,775a this include entrusted resources 9,905 – 9,905 5,138

B. Fixed assets 22,681 12,109 10,572 10,027B. I. Intangible fixed assets 2,114 1,497 617 516B. I. 1. Software 1,656 1,361 295 251

2. Royalties 2 1 1 13. Other intangible fixed assets 167 131 36 344. Intangible fixed assets in the course of construction 289 4 285 230

B. II. Tangible fixed assets 19,927 10,612 9,315 8,910B. II. 1. Land 783 – 783 780

2. Constructions 9,698 4,279 5,419 5,4663. Equipment 8,014 6,239 1,775 1,7804. Other tangible fixed assets 4 – 4 45. Tangible fixed assets in the course of construction 1,423 94 1,329 8756. Advances paid for tangible fixed assets 5 – 5 5

B. III. Long-term investments 640 – 640 601B. III. 1. Investments in subsidiaries 25 – 25 18

2. Other long-term investments in securities 615 – 615 583C. Current assets 16,244 143 16,101 11,620C. a this include entrusted resources 9,905 – 9,905 5,138C. I. Inventories 308 55 253 212C. I. 1. Raw materials 226 46 180 140

2. Finished goods 82 9 73 72C. II. Long-term receivables 14 – 14 13

1. Trade receivables 3 – 3 32. Other receivables 11 – 11 10

C. III. Short-term receivables 2,823 88 2,735 2,745C. III. a this include entrusted resources 296 – 296 346C. III. 1. Trade receivables 1,689 63 1,626 1,724

1. a this include entrusted resources 296 – 296 3462. Receivables-managing and controlling parties 18 – 18 –3. Receivables from shareholders and co-ventures 2 – 2 –4. Taxes and state subsidies receivable 145 – 145 1825. Short-term advances paid 124 – 124 1186. Estimated receivables 770 – 770 6727. Other receivables 75 25 50 49

C. IV. Financial assets 13,099 – 13,099 8,650C. IV. a this include entrusted resources 9,609 – 9,609 4,792C. IV. 1. Cash in hand 4,176 – 4,176 4,108

1. a this include entrusted resources 4,176 – 4,176 4,0262. Cash at bank 8,173 – 8,173 3,3392. a this include entrusted resources 5,433 – 5,433 7663. Short-term investments 750 – 750 1,203

D. I. Other assets 93 – 93 128D. I. 1. Prepaid expenses 91 – 91 122

2. Accrued income 2 – 2 6

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fINANCIALSTATEMENTS

(CZK million)

Ref. LIABILITIES AND EQUITY 31. 12. 2012 31. 12. 2011a b 6 7

TOTAL LIABILITIES AND EQUITY 26,766 21,775a this include entrusted resources 9,905 5,138

A. Equity 10,281 10,159A. I. Share capital 3,588 3,588A. I. 1. Share capital 3,588 3,588A. II. Capital contributions 6,057 5,861A. II. 1. Other capital contributions 6,037 5,868

2. Assets and liabilities revaluation 20 (7)A. III. Reserve fund and other reserves 375 372A. III. 1. Legal reserve fund 359 359

2. Statutory and other reserves 16 13A. IV. Profit / (loss) for the current period 261 338B. Liabilities 15,916 10,874B. a this include entrusted resources 9,905 5,138B. I. Provisions 782 935B. I. 1. Other provisions 782 935B. II. Long-term liabilities 272 225

1. Deferred tax liability 272 225B. III. Short-term liabilities 14,831 9,682B. III. a this include entrusted resources 9,874 5,106B. III. 1. Trade payables 12,182 7,277

1. a this include entrusted resources 9,874 5,1062. Liabilities – subsidiaries / controlling parties 1 13. Liabilities to employees 544 5324. Liabilities for social security and health insurance 326 3345. Taxes and state subsidies payable 81 806. Short-term advances received 44 147. Estimated payables 1,232 1,1028. Other payables 421 342

B. IV. Bank loans and overdrafts 31 32B. IV. a this include entrusted resources 31 32B. IV. 1. Short-term bank loans and overdrafts 31 32

1. a this include entrusted resources 31 32C. I. Accruals and deferred income 569 742C. I. 1. Accruals 3 129

2. Deferred income 566 613

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Income statement(CZK million)

Accounting periodRef. DESCRIPTION 31. 12. 2012 31. 12. 2011a b 1 1

I. Sales of goods 283 452A. Cost of goods sold 22 381

+ Gross profit 61 71II. Sales of production 19,663 20,002II. 1. Sales of own products and services 19,646 20,076

2. Change in inventory of finished goods and work in progress – (92)3. Own work capitalised 17 18

B. Cost of sales 5,585 5,519B. 1. Raw materials and consumables 1,518 1,644

2. Services 4,067 3,875+ Added value 14,139 14,554

C. Staff costs 12,425 12,741C. 1. Wages and salaries 9,092 9,359

2. Emoluments of board members 12 83. Social security and health insurance costs 2,988 3,0414. Other social costs 333 333

D. Taxes and charges 106 92E. Depreciation of fixed assets 976 956

III. Sale of fixed assets and raw materials 6 2III. 1. Sale of fixed assets 6 2

F. Net book value of fixed assets and raw materials sold 2 1F. 1. Net book value of fixed assets sold 2 1G. Increase / (decrease) in operating provisions (143) 108

IV. Other operating income 231 322H. Other operating charges 759 614

* Operating result 251 366V. Income from long-term investments 11 11V. 1. Income from investments in subsidiaries and associates 11 11VI. Income from short-term investments 14 25VII. Interest income 45 32VIII. Other financial income 32 38

I. Other financial expense 47 53* Financial result 55 53

J. Tax on profit or loss on ordinary activities 45 81J. 1. – current 3 81

2. – deferred 42 –** Profit or loss on ordinary activities after taxation 261 338*** Net profit/(loss) for the financial period 261 338*** Net profit/(loss) before taxation 306 419

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Cash flow statement for the year ended 31 December 2012(CZK million)

2012 2011 P. Cash and cash equivalents as at the beginning of the financial period 8,650 8,386P. out of which entrusted resources 4,792 4,538Z. Net profit on ordinary activities before tax 306 419A.1 Adjustments for non-cash movements: 803 1,241A.1.1 Depreciation/amortisation of fixed assets and lost investment projects 995 965A.1.2 Changes in provisions (143) 108A.1.3 Profit from disposal of fixed assets (4) (1)A.1.4 Net interest income (45) (32)A.1.5 Other non-cash movements – 201A* Net cash flow from operating activities before tax, changes in working capital and extraordinary items 1,109 1,660A.2 Working capital changes: 4,726 (236)A.2 out of which entrusted resources 4,817 254A.2.1 Changes in receivables and prepayments and accrued income 53 (441)A.2.1 out of which entrusted resources 50 (106)A.2.2 Changes in short-term payables, accrued expenses and deferred income 4,713 238A.2.2 out of which entrusted resources 4,767 360A.2.3 Changes in inventories (40) (33)A** Net cash flow from operating activities before tax and extraordinary items 5,835 1,424A** out of which entrusted resources 4,817 254A.4 Interest received 45 32A.5 Income tax on ordinary activities paid and additional taxes for previous periods (24) (49)A*** Net cash flow from operating activities 5,856 1,407A*** out of which entrusted resources 4,817 254B.1 Acquisition of fixed assets (1,246) (978)B.2 Proceeds from the sale of fixed assets 5 2B*** Net cash flow from investing activities (1,241) (976)

Cash flows from financing activitiesC.1 Changes in equity: (166) (167)C.1.1 Direct payments from reserves (166) (167)C*** Net cash flow from financing activities (166) (167)F. Net increase/(decrease) in cash and cash equivalents 4,449 264F. out of which entrusted resources 4,817 254R. Cash and cash equivalents as at the end of the year 13,099 8,650R. out of which entrusted resources 9,609 4,792

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NOTES TO ThE fINANCIAL

STATEMENTS

1. General information

1.1. Introductory information about the Company

Česká pošta, s.p. (“the Company” or “the Czech Post”) is a state-owned enterprise. It is a legal entityconducting its business activities using the Czech government’s assets under its own name and on its ownaccount. The founder of the Company is the government of the Czech Republic. The Company was establishedon 1 January 1993 and the founder was then represented by the Ministry of Transportation and Communicationsof the Czech Republic. As at 31 December 2012 and 31 December 2011, the role of the founder of the Companyunder the government’s name was carried out by the Ministry of Interior of the Czech Republic. The Companyas at 31 December 2012 has its registered office at Prague 1, Politických vězňů 909/4, the Czech Republic. TheCompany’s identification number is 47114983 and it is written in the Commercial Register of the MunicipalCourt in Prague, section A, insert no. 7565. Česká pošta is a business entity pursuant to the State-OwnedEnterprise Act No. 77/1997 Coll., as amended.

The Company’s activities are regulated by the Czech Telecommunication Office (“CTO”).

The main business activities of the Company are as follows:a) postal services provision,b) international postal operations provision,c) provision of services of central buying place for government (public) administration.

The corporate bodies of the Company are the General Director and the Supervisory Board. The GeneralDirector is the Company’s statutory body.

There were significant changes in the organisational structure of the Company during the year in order toimprove the management system and to realise essential changes which would enable the implementation ofline management and the centralisation of service activities.

The organisational structure as at 31 December 2012 was as follows:

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Branch ICT ServicesExecutive Director

Sales and ServiceExecutive Director

ProjectsExecutive Director

Communication InfrastructureExecutive Director

Internal Audit andRisk ManagementExecutive Director

CoraporateManagementExecutive Director

OmbudsmanOmbudsman

CommunicationExecutive Director

LegislationExecutive Director

SecurityExecutive Director

Protection of Persons and PropertyExecutive Director

Postal SecurityExecutive Director

PostalTechnologyChief Director

Allocations andPaymentsExecutive Director

StrategicDevelopmentand BIExecutive Director

Postal TechnologyExecutive Director

ComplaintsExecutive Director

Purchasing andProcurementChief Executive

Public ContractPreparationExecutive Director

CentralPurchasingExecutive Director

Standardize andPromote thePurchaseExecutive Director

PurchasingStrategy andSupplyExecutive Director

Human ResourcesManagementChief Executive

Collective andSocialRelationshipsExecutive Director

Renumerations Executive Director

PersonnelInformationExecutive Director

5 HR – FrontOfficesExecutive Director

HR DevelopmentExecutive Director

HR Processes –Back OfficeExecutive Director

Czech Post Director General

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FinanceChief Executive

Accounting andTaxesExecutive Director

ControllingExecutive Director

Treasury andFinancingExecutive Director

ICT andeGovernmentChief Executive

ICT SecurityExecutive Director

ICTExecutive Director

eGovernmentExecutive Director

ICT SupportExecutive Director

Sales and MarketingChief Executive

Sales CoordinationExecutive Director

BusinessDevelopmentExecutive Director

MarketingExecutive Director

Regional andInternationalSalesExecutive Director

Corporate SalesExecutive Director

Alliance PartnersExecutive Director

PropertyManagementChief Executive

Administration Executive Director

OperationsExecutive Director

TransportManagementExecutive Director

Operations supportto Logistics andProcurementChief Director

Logistics NetworkArchitectureExecutive Director

Regional supportto LogisticsNetworkExecutive Director

InvestmentsExecutive Director

LogisticsExecutive Director

Money ServicesOperationExecutive Director

8 RegionsExecutive Director

The top management of the Company as at 31 December 2012 were as follows:

Members of the top management Position Appointed on Written into the Commercial

Register onIng. Petr Zatloukal,MSc., MBA General Director 25 May 2011 30 June 2011Ing. Martin Elkán Deputy of the General Director and Chief Director of Trade and Marketing Division 1 June 2011* 30 June 2011Ing. Tomáš Ječný Deputy of the General Director and Chief Director of ICT a eGovernment Division 13 February 2012* 11 April 2012*

Richard Soldán Deputy of the General Director and Chief Director of Postal Operations and Logistics Division* 13 February 2012* 11 April 2012*

Ing. Martin Horák Deputy of the General Director and Chief Director of Finance Division 1 December 2012* 10 January 2013*Ing. Ladislav Tomeš Deputy of the General Director and Chief Director of Property Management Division 13 February 2012* 11 April 2012** date of appointment to the position of Deputy of the General Director

The following changes in the top management of the Company were also registered into the CommercialRegister in 2012:

Members of the top management Position Appointed on Written into Terminated Removed from the Commercial on the Commercial

Register on Register onMgr. Radim Bureš Deputy of the General Director 1 May 2012 10 May 2012 30 November 2012 10 January 2013Ing. Jana Vošická Deputy of the General Director

and Chief Director of the Finance Division 13 February 2012* 11 April 2012* 30 November 2012* 10 January 2013** date of appointment to the position of Deputy of the General Director

Changes in the top management of the Company, which occurred between the balance sheet date and thedate of preparation of the financial statements, are disclosed in Note 25 – Subsequent events.

On 10 May 2012 the establishment of the Company’s ICT služby branch (full name: Česká pošta, s.p., Odštepnýzávod ICT služby) was entered into the Commercial Register, with the registered office at Olšanská 1951/4,Prague 3. The Branch’s Director is Ing. Ivo Rosypal – appointed on 1 May 2012, entered into the CommercialRegister on 10 May 2012.

The main business activities of the Branch are as follows:– supply, development and operation of information and communication technology systems and related

services, that is used for workload in state (public) administration;– operation, supply and development of information and communication technology systems, that operate

with sensitive data or restricted information, including data registers and data storages;– operation, support and development of critical communication state infrastructure, including CMS, mainly

according to the Information systems of public administration Act No. 365/2000 as amended and Electronicoperations and authorised document conversion Act No. 300/2008;

– provision of services of central buyer place for government (public) administration.

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Members of the Supervisory Board as at 31 December 2012 were as follows:

Name PositionIng. Jiří Maceška ChairmanKarel Koukal Vice-ChairmanIng. Jan Mládek, CSc. Vice-ChairmanMgr. Jan Sixta Vice-ChairmanIng. Vladimír Budinský, MBA MemberIng. Soňa Lavičková MemberIng. Lubomír Krejsa MemberIvana Musilová MemberIng. Jiří Řehola MemberIng. Miroslava Oliveriusová MemberŠtěpán Grochal Member

Members of the finance and audit committee of the Company as at 31 December 2012 were as follows:

Name PositionIng. Jan Mládek, CSc. ChairmanIvana Musilová MemberIng. Miroslava Oliveriusová Member

The Company’s mission is to perform the function of public postal operator involving a duty to provide andoperate basic postal services in accordance with the Postal Services Act No. 29/2000 Coll., as amended (“thePostal Services Act”). The Company holds a postal licence in accordance with paragraph 19 of the PostalServices Act. The postal licence was granted to the Company by the Czech Telecommunication Office (CTO)until 31 December 2017.

The holder of the postal licence has:a) a duty to secure the general availability of basic postal services on the whole territory of the Czech Republic,b) a right to operate postal services, i.e. deliver mail and/or money remitted by money order.

The CTO, as the postal regulator, sets basic quality requirements for the Company, concerning, e.g. density ofservice points, opening hours of premises, methods of delivering to addressees, delivery speed, handlingcomplaints, etc. These quality requirements are assessed on an annual basis by the CTO. The requirementsare assessed on a yearly basis in the Report on the fulfilment of tasks of Česká pošta, s.p. in the area of basicservices published by the CTO (“the CTO Report”). The CTO Report for 2012 has not been published as at thedate of the Company’s financial statements.

The deficiencies identified in the CTO Report for 2011 (e.g. short opening hours, etc.) are being resolved by theCompany on a continuous basis. No material financial claims of the CTO or other entities against theCompany, which could be enforceable by law, were identified in the Report.

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2. Basis of preparation

The financial statements have been prepared in accordance with Accounting Act No. 563/1991 Coll. andrelated Decree No. 500/2002 Coll. and pursuant to the Czech Accounting Standards for Businesses applicablefor 2012. The financial statements have been prepared in accordance with Generally Accepted AccountingPrinciples in the Czech Republic and have been prepared under the historical cost convention except asdisclosed below.

3. Accounting policiesValuation methods applied by the Company during preparation of the financial statements for 2012 were asfollows:

3.1. Intangible fixed assets

Acquired intangible fixed assets are recorded at cost, which include costs of acquisition and related costs.

Intangible fixed assets with a unit cost more than CZK 60 thousand are amortised using the straight-linemethod over their estimated useful lives in accordance with the Company’s amortisation plan (i.e. over 4 years).

Intangible fixed assets with a unit cost less than CZK 60 thousand are expensed upon acquisition and carriedonly in the operational evidence and off balance sheet.

The amortisation plan is updated during the useful life of the intangible fixed assets based on the expecteduseful life.

The cost limit for the activation of the technical improvements of intangible fixed assets is CZK 40 thousand. A provision for impairment is created when the carrying value of an asset is greater than its estimatedrecoverable amount. The estimated recoverable amount is determined based on expected future cash flowsgenerated by the certain asset.

3.2. Tangible fixed assets

Acquired tangible fixed assets are recorded at cost, which include costs of acquisition, transportation costs andother related costs. Loan interest is not included by the Company in the acquisition cost of tangible fixed assets.

Tangible fixed assets acquired free of charge are valued at their replacement cost and are recorded into othercapital funds. The replacement cost of these assets is based on an expert opinion or on market prices ofcomparable fixed assets in terms of their wear and tear and performance. Valuation of tangible fixed assets isdecreased by subsidies for the acquisition of assets.

The depreciation plan is updated during the useful life of the tangible fixed assets based on the expecteduseful life.

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A provision for impairment is established when the carrying value of an asset is greater than its estimatedrecoverable amount. The estimated recoverable amount is determined based on expected future cash flowsgenerated by the certain asset.

A provision for impairment is established when the carrying value of a cash-generating unit is greater than itsestimated recoverable amount. A cash-generating unit is the smallest identifiable group of assets thatgenerates cash income significantly independent of cash income from other assets or asset groups. TheCompany considers the entire accounting unit to be a cash-generating unit.

A provision is created mainly in cases of projects whose realisation is uncertain or in cases of expected sales ifthe expected sales price net of transaction cost is lower than the book value disclosed in the records.

Technical improvement improvement expenses of tangible fixed assets increase the costs if their expensesexceed the total amount of CZK 40 thousand and technical improvements are put into use in this year. Ordinaryrepairs and maintenance expenses are expensed as incurred.

Tangible fixed assets with a unit cost below CZK 40 thousand are treated as inventory and are expensed uponconsumption and are only carried in the operational record. Tangible fixed assets with a unit cost above CZK 40 thousand are depreciated using the straight-line method over their estimated useful lives. Theestimated useful lives of tangible assets are as follows:

YearsBuildings, halls and constructions 20–45Plant, machinery and equipment 4–15Motor vehicles 6–20Furniture and fittings 10–20Handling equipment 6–20Computers and related equipment 3–5

3.3. Investments in controlled entities/subsidiaries and investments in associates

Investments in subsidiaries represent ownership interests in enterprises that are controlled by the Company(“the subsidiary”).

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3.4. Long-term financial assets

Long-term financial assets consist of equity investments and other long-term securities and shares.

Equity investments in companies with controlling interest are valued at cost. In case it is necessary to take anyreduction value into account, the Company recognises a provision. Investment with the controlling interestcompanies (subsidiaries) is a company controlled by the Company whose financial and operating processescan be controlled by the Company to obtain benefits from its activities. Other long-term securities and shares,that are not owned, represent debt securities held to maturity and the securities available for sale.

3.5. Other securities and investments

The Company classifies securities and investments, other than investments in subsidiaries and associates asheld-to-maturity and available-for-sale.

Debt securities that the Company has the intent and ability to hold to maturity are classified as held-to-maturity and are included in non-current assets, unless the date of maturity falls within 12 months of thebalance sheet date.

Securities and investments intended to be held by the Company for an indefinite period of time, which may besold in response to the Company’s liquidity requirements, are classified as available-for-sale. Theseinvestments are included in non-current assets unless the Company’s management has the express intentionof holding the investment for less than 12 months from the balance sheet date, in which case they areincluded in current assets. Management determines the appropriate classification of investments as at thetime of purchase and the classification are reviewed on a regular basis.

All securities and investments are initially recorded at cost, including transaction costs. Held-to-maturityinvestments are subsequently accounted for at amortised cost. Other investments are subsequently accountedfor at fair value. The fair value is determined as the market value of the securities as at the balance sheetdate. Measurement of non-trading securities is based on the Company’s management estimates based onvaluation techniques.

Gains and losses arising from changes in the fair value of trading instruments are included in the incomestatement in the period in which they arise. Unrealised gains and losses arising from changes in fair value ofavailable-for-sale investments are recognised as a movement in equity and recognised into the incomestatement on realisation or when permanently impaired.

A provision for impairment is established for held-to-maturity investments when their carrying value isgreater than their estimated recoverable amount.

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3.6. Short-term financial assets

Short-term financial assets consist of valuables, cash in hand and in the bank and trading securities. Short-term financial assets also include Entrusted resources – see also Note 3.9. – Entrusted resources.

Trading securities are securities held for the purpose of effecting transactions on the public market in order tomake a profit from price fluctuations in short-term, but in one-year period as a maximum.

3.7. Inventories

Purchased inventories are stated at acquisition cost. In case it is necessary to take any reduction value intoaccount, the Company recognises a provision. Cost includes all costs related with its acquisition (mainlytransport costs). The weighted average cost method is applied by the Company for all disposals.

A provision is created for slow-moving and obsolete inventory based on an analysis of turnover and individualevaluation of inventories.

3.8. Receivables

Receivables are stated at nominal value less a provision for doubtful amounts. A provision for doubtful amountsis created on the basis of an ageing analysis and individual evaluation of the credit worthiness of the customers.

Item “State-tax receivables” includes also a provision for income tax, in case this provision is lower thanadvances for the income tax paid.

3.9. Entrusted resources

In some cases, the financial resources of third parties are temporarily entrusted to the Company in order toperform specific transactions (services for clients of Československá obchodní banka, a. s. (“ČSOB, a. s.”),collection of radio and television licence fees, payment of pensions, collection of SIPO payments, betting games,sale of stamps, vignettes, postal payment services, services for the mobile operators, customs declarationsetc.). These resources are recorded in a separate accounting group apart from the Company’s own financialresources, and are disclosed in separate rows in the balance sheet. The Company charges an agreedcommission for performing the specific transactions, which is recognised in accruals within its own resources.

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3.10. Share capital

The Company’s financial position and funds are being managed in accordance with the State-OwnedEnterprise Act No. 77/1997 Coll., as amended. Pursuant to this Act, the registered capital of a state-ownedenterprise corresponds to the business capital to which the enterprise has a title on its establishment. Theshare capital includes both registered and non-registered capital in compliance with accounting legislation.Other capital funds are created in accordance with the accounting standards for businesses.

In addition, the Company creates a reserve fund from profit, which has now reached 10% of the share capital.

The Company creates a cultural and social fund (“CSF”). The creation and use of this fund is being managed inaccordance with paragraph 16 of Decree No. 114/2002 Coll., in connection with Decree No. 310/1995 Coll.

3.11. Provisions and liabilities

Provisions are recognised when the Company has a present obligation, an outflow of resources is likely to berequired to settle the obligation and a reliable estimate of the amount can be made.

The item “Provision for income tax” also includes advances paid for income tax, in case these advances arelower than the provision for income tax.

Long-term and short-term liabilities are recorded at their nominal values.

Short-term and long-term loans are recorded at their nominal values. Any proportion of long-term loan debtdue within one year of the balance sheet date is recognised as short-term loan.

3.12. Leases

The costs of assets held under both finance and operational leases are not capitalised to fixed assets. Theleases are recorded as expenses evenly over the life of the lease. Amounts payable in future periods but not yetdue are disclosed in the notes but not recognised in the balance sheet. The Company activates the respectivevalue of leased asset in the period when the lease agreement is being concluded and the purchase option isexercised. Lease payments made in advance are accrued over the lease period.

3.13. foreign currency translation

Transactions denominated in a foreign currency are translated and recorded at the rate of exchange ruling asat the first day of the current calendar month as published by the Czech National Bank.

Cash, receivables and liabilities balances denominated in foreign currencies have been translated at theexchange rate published by the Czech National Bank as at the balance sheet date. All exchange gains andlosses on cash, receivables and liabilities balances are recorded in the income statement.

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3.14. Expenses and revenues recognition

Revenues and expenses are recognised on an accrual principle in the period to which they relate.

Sales are recognised as at the date the services are rendered (with the exceptions disclosed below) or sales ofgoods to customers and are stated net of discounts and value added tax.

Sales of postal services realised as cash through sales of postal stamps are recognised when the stamps aresold. The Company does not have the necessary information that would allow it to record income from thesesales on an accrual basis in respect to the accounting periods in which customers actually use the purchasedpostal stamps. The Company believes that the costs of collecting such information relating to the timeallocation needed for these services realised through sales of postal stamps would exceed the benefits of suchinformation.

Revenues from agency services include the commission received for the services provided in the relevantaccounting period on an accrual basis.

The Company records expenses related to provisions and allowances for any risks, losses and devaluation thatare known as at the date of preparation of the financial statements.

3.15. Income tax

The income tax expense is calculated, using the valid tax rate, from the accounting profit increased ordecreased by the permanent or temporary non-deductible expenses and non-taxable income (e.g. non-deductible provisions and allowances, representation expenses, differences between accounting and taxdepreciation, etc.).

Corporate income tax is recognised in the balance sheet as a part of the item “Taxes and state subsidiespayable” if the tax liability exceeds the tax advances paid. Otherwise, amount exceeding the tax liability as aresult of the advances paid is recorded as “Taxes and state subsidies receivable”. The tax expense is disclosedin the profit and loss account as tax from ordinary activities.

3.16. Deferred tax

Deferred tax is recognised on all temporary differences between the carrying amount of an asset or liability inthe balance sheet and its tax base. Deferred tax asset is recognised if it is probable that sufficient futuretaxable profit will be available against which the asset can be utilised.

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3.17. Employment benefits

The Company provides its employees with contributions to pension and health insurance in accordance withthe principles set out in the collective agreement. Regular contributions are made to the state to fund thenational pension plan.

The Company creates a provision for employee benefits, in which the following types of employee benefits arereflected:– work jubilee bonuses,– life jubilee bonuses,– employee retirement bonuses.

The above-mentioned types of employee benefits are classified as follows:– work and life jubilee bonuses are recognised as other long-term employee benefits,– employee retirement bonuses are recognised as employee benefits incurred on the employee’s retirement,

that are paid based on the defined benefits plan.

Employees may claim these benefits when they have worked for the Company for a certain period of time and,in the case of bonuses paid on the employee’s retirement, when the statutory retirement age is reached, or inthe case of work and life jubilee bonuses. The fixed amount paid on the employee’s retirement depends on thenumber of years spent with the Company, but is independent of the growth in salary. The total amount ofretirement payments of the Company equals the long-term employee benefits as at the balance sheet date,and is calculated using a method of planned annual appreciation of employee benefits, including the relatedsocial and health insurance costs. Gains or losses from adjustments and changes of the actuarial estimatesare recognised in the profit and loss account.

The Company creates a provision for untaken holidays and work and life jubilees. The Company creates anestimated payable for rewards and bonuses to employees who became entitled to payment as at the balancesheet date. The Company creates a provision for the rewards and bonuses to employees who did not becomeentitled to payment as at the balance sheet date.

3.18. Related parties

The Company’s related parties are considered to be the following:– the state represented by the Company’s founder, government institutions, state-owned enterprises and

companies, and other legal entities, where the state has controlling or significant influence, while the natureof the relationship is also decisive and not merely the legal form;

– members of the Company’s statutory, supervisory bodies and management and related parties to thesemembers, including companies or institutions or businesses, where these members and parties have acontrolling, proportional or significant influence.

Material transactions and outstanding balances not only related to main postal services with related partiesare disclosed in Note 21 – Related party transaction.

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3.19. Cash and cash equivalents

Cash and cash equivalents include cash in hand, stamps and vouchers and cash in banks, including bankoverdrafts.

Cash equivalents are short-term highly liquid investments that can be exchanged for a predictable amount ofcash and no significant changes of value over time are expected. Cash equivalents are, for example, depositswith a maturity of less than 3 months from the date of acquisition and liquid debt securities traded in publicmarkets.

The Company has prepared a cash-flow statement using the indirect method.

3.20. Subsequent events

The effects of events, which occurred between the balance sheet date and the date of preparation of thefinancial statements, are recognised in the financial statements in the case that these events provide furtherevidence of conditions that existed as at the balance sheet date.

Where significant events occur subsequent to the balance sheet date but prior to the preparation of thefinancial statements, which are indicative of conditions that arose subsequent to the balance sheet date, theeffects of these events are disclosed, but are not themselves recognised in the financial statements.

3.21. Changes of the accounting methods and estimates

In 2012, the Company established the calculation of estimated receivables/payables related to internationaloperation. The impact of this change on comparable data would be a decrease of CZK 40 million for estimatedreceivables and an increase of CZK 8 million for estimated payables. The comparable period has not beenchanged due to immateriality.

In 2011, the Company changed the classification of changes in the fair values of securities when thesechanges are recorded in equity in the relevant year.

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FINANCIALSTATEMENTS

4. Intangible and tangible fixed assets

4.1. Intangible fixed assets

Acquisition cost

(CZK million) Opening Additions Disposals Closing balance balance

Software 1,489 167 – 1,656Royalties 2 – – 2Other intangible fixed assets 152 15 – 167Intangible fixed assets in the course of construction 230 242 (183) 289Total in 2012 1,873 424 (183) 2,114Total in 2011 1,560 560 (247) 1,873

Additions and Disposals also include transfers of intangible fixed assets in the course of construction.

Accumulated amortisation and net book value

(CZK million) Opening Additions Disposals Closing Impairment Closing balance balance balance

of accumulatedamortisation

Software (1,238) (123) – (1,361) – 295Royalties (1) – – (1) – 1Other intangible fixed assets (118) (13) – (131) – 36Intangible fixed assets in the course of construction – – – – (4) 285Total in 2012 (1,357) (136) – (1,493) (4) 617Total in 2011 (1,252) (107) 2 (1,357) – 516

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4.2. Tangible fixed assets

Acquisition cost

(CZK million) Opening Additions Disposals Closing balance balance

Land 781 3 (1) 783Buildings 9,529 194 (25) 9,698Plant, machinery and equipment 4,179 498 (73) 4,604Motor vehicles 2,324 74 (132) 2,266Furniture and fixtures 635 27 (15) 647Other movable assets 542 – (45) 497Works of art 4 – – 4Tangible fixed assets in the course of construction 974 1,259 (810) 1,423Advances paid for tangible fixed assets 5 – – 5Total in 2012 18,973 2,055 (1,101) 19,927Total in 2011 18,641 1,562 (1,230) 18,973

Additions and Disposals also include transfers of tangible fixed assets in the course of construction.

Disposals of tangible fixed assets in the course of construction also include depreciation of lost investments.

Accumulated amortisation and net book value

(CZK million) Opening Additions Disposals Closing Impairment Closing balance balance balance

of accumulated amortisation

Land – – – – – 783Buildings (4,018) (230) 14 (4,234) (45) 5,419Plant, machinery and equipment (2,860) (442) 73 (3,229) (86) 1,289Motor vehicles (1,894) (143) 130 (1,907) – 359Furniture and fixtures (518) (17) 15 (520) – 127Other movable assets (542) – 45 (497) – –Works of art – – – – – 4Tangible fixed assets in the course of construction – – – – (94) 1,329Advances paid for tangible fixed assets – – – – – 5Total in 2012 (9,832) (832) 277 (10,387) (225) 9,315Total in 2011 (9,181) (849) 198 (9,832) (231) 8,910

Depreciation of intangible and tangible fixed assets also includes the net book value of disposals of assets inthe amount of CZK 8 million.

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FINANCIALSTATEMENTS

Based on stock-taking performed, the Company has adjusted the carrying value of the tangible fixed assets fordiminution in value through provisions (see Note 7 – Provisions). In 2012 and 2011 respectively, the Companydid not receive any material fixed assets free of charge.

In 2012 and 2011, besides the lien in favour of PCS – Praha Center s.r.o. created in relation to the post officebuilding at Jindřišská, Prague 1 under an agreement dated 16 April 1997, which is in force until 31 March 2042,the Company has another 277 (2011: 268) minor liens (rights for sewage pipeline, water pipeline, power andgas connection, hot-water piping, right of entry, access, crossing, riding, parking of a company car, pre-emptive right and the right of use) mainly created in favour of the communal and municipal authorities,Telefónica O2 Czech Republic, a.s. and power producers and distributors.

In 2012, the Company received an investment subsidy in the amount of CZK 2 million. In 2011, the Companydid not receive any investments subsidies.

4.3. Long-term financial assets

As at 31 December 2012 and 31 December 2011, the Company exercised a controlling interest in Poštovnítiskárna cenin Praha, a.s., with its registered office at Ortenovo náměstí 542/16, Prague 7 – Holešovice, inwhich it held 16,903 out of the total 33,124 shares of a nominal value of CZK 1 thousand.

2012 2011Share (%) 51.03% 51.03%

(CZK million) (CZK million)Total assets 97 96Equity 91 90Net profit for the financial period 1 1Acquisition cost of the shares 18 18Nominal value of the shares 17 17Intrinsic value of the shares 46 46Dividends received – –

The intrinsic value of shares states the Company’s share in the equity capital of the controlled company as at 31 December.

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Financial information for this company was taken from the financial statements not yet verified by the auditor.The Company did not provide the company over which it exercises significant influence with any loans orborrowings as at 31 December 2012 and 31 December 2011.

The Company also exercised a significant influence in ABAS CiT Management s.r.o. with its registered office atGorkého 3037/3, Moravská Ostrava, in which it held 100% of the shares. The shares were transferred as at 31 August 2012.

2012 2011Share (%) 100% –

(CZK million) (CZK million)Total assets 12 17Equity (14) (29)Net profit for the financial period (31) (28)Acquisition cost of the shares 7 –Intrinsic value of the shares (14) –

The acquisition price of the share includes two instalments out of a total of five in total as at 31 December 2012,while the last instalment should be paid in 2016 at the latest.

The intrinsic value of shares states the Company’s share in the equity capital of the controlled company as at 31 December.

Financial information for this company was taken from the financial statements not verified by the auditor. TheCompany provided this company with a short-term purposeless loan. The limit amount of this loan amountedto CZK 20 million as at 31 December 2012. As at 31 December 2012 ABAS CiT Management s.r.o. drew a loanin the amount of CZK 14 million.

Other long-term investments as at 31 December 2012 comprise:a) state debenture maturing in 2016, available-for-sale investment, valued at fair value of CZK 403 million

(2011: CZK 387 million);b) state debenture maturing in 2023, available-for-sale investment, valued at fair value of CZK 212 million

(2011: CZK 196 million).

These state debentures were issued by the Ministry of Finance of the Czech Republic.

The Company reclassified its investments from long-term financial assets to the off-balance sheet recordsbased on the probable permanent devaluation of 233,630 shares of IPB, a.s. (currently IP Exit, a.s.) at a totalnominal value of CZK 23 million, purchased at the acquisition cost of CZK 40 million and zero net book value.

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FINANCIALSTATEMENTS

5. Inventories

The Company created a provision for inventories to adjust the value of inventory (see Note 7 – Provisions).

6. Receivables

As at 31 December 2012 and 31 December 2011, receivables due after more than 5 years amounted to CZK 2 million and CZK 1 million, respectively and outstanding overdue receivables amounted to CZK 317 millionand CZK 224 million, respectively. Outstanding overdue receivables are not secured. In 2012 and 2011, theCompany wrote off its receivables in the amount of CZK 11 million in both years, as expenses, due to theirunrecoverable nature, the dismissal of a bankruptcy petition and the settlement or non-recovery of debts inbankruptcy proceedings.

Receivables from related parties are described in Note 21 – Related party transactions. The estimatedreceivables and payables primarily comprise transactions related to international postal operations, balancesof these transactions as at 31 December 2012 amounted to CZK 496 million and to CZK 526 million as at 31 December 2011. Operating records on incoming and outgoing mail so far not confirmed by individual postaloffices were recorded as estimated and payables with the double entry in operating expenses and income,based on operating statistics.

7. Provisions

Provisions reflect a temporary decrease in the value of assets (disclosed in Note 4 – Fixed assets, 5 – Inventories and 6 – Receivables).

Provisions as at: Balance as at Charge Release Balance as at Charge Release Balance as at (CZK million) 1 January 31 December 31 December

2011 2011 2012Tangible fixed assets – – – – 4 – 4Long-term financial assets 147 93 (9) 231 6 (12) 225Inventories 49 7 – 56 3 (4) 55Receivables – other 35 30 (9) 56 35 (29) 62Total tax non-deductible provisions 231 130 (18) 343 48 (45) 346Receivables – legal 22 8 (10) 20 18 (12) 26Total tax deductible provisions 22 8 (10) 20 18 (12) 26Total 253 138 (28) 363 66 (57) 372

Legal provisions are being created pursuant to the Reserves Act and are deductible for tax purposes; otherprovisions are not deductible for tax purposes.

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8. Short-term financial assets

The main bank used by the Company is ČSOB, a. s. in which the Company has two cash-pooling sets ofaccounts, a set of current accounts and a set of accounts with entrusted resources. An overdraft enabling theCompany to have a negative balance is agreed for the set of accounts with both the Company’s own andentrusted resources (see Note 13 – Bank loans and overdrafts).

The Company’s deposits on saving accounts amounted to CZK 7,996 million and CZK 3,310 million as at 31 December 2012 and 31 December 2011, respectively.

The Company’s guarantees/letters of credit, which are drawn under a general agreement on the provision offinancial services made with Komerční banka, a.s up to a limit of CZK 430 million as at 31 December 2012 wereas follows:

Type of guarantee/ Creditor Subject Valid until Amountletter of credit (CZK million)Letter of credit receivable Trade Impex s.r.o. Purchase of machinery 3 January 2013 16Non-payment Ministry of Local Development Proposal offer 5 April 2013 2

of the Czech RepublicPayment Customs Directorate in Prague Customs debt 20 March 2013 4Payment HCEPP II Rudná s.r.o. Rental agreement 10 May 2014 2Payment Czech Directorate of Highways and Roads Fulfilment of obligations in respect 6 May 2014 7

of the electronic toll systemPayment State Fund of Transport Infrastructure Distribution and sales of vignettes proving 16 March 2014 10

the fee payment for highways and expressways use

Payment CONTERA Investment III s.r.o. The lease of rent for commercial space 14 August 2014 1

Short-term securities and ownership interests as at 31 December 2012 and 31 December 2011 were as follows:

Issuer Type 2012 2011(CZK million) (CZK million)

Ministry of Finance CR state bond (CR) – 203PPF banka a.s. short-term depository notes 750 1,000Total 750 1,203

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FINANCIALSTATEMENTS

9. Equity

As at 31 December 2012 and 31 December 2011, share capital amounted to CZK 3,588 million.

Other capital funds mainly comprise of contributions from profit for investment purposes or gifts received.

The revaluation differences from the revaluation of assets and liabilities include the revaluation of available-for-salesecurities at fair value.

The reserve fund has been created gradually up to the level of 10% of share capital.

Other funds from profit include the cultural and social fund.

The following changes in equity occurred in 2012 and 2011:

(CZK million) Share Other Revaluation Legal Other Net Totalcapital capital differences reserve funds profit for the

funds from fund financial revaluation period

of assetsand liabilities

As at 1 January 2011 3,588 5,840 - 359 9 214 10,010Profit contribution and movements between funds – 43 – – 171 (214) –Decrease (e.g. fund utilisation) – (15) (7) – (167) – (189)Net profit for the current period – – – – – 338 338As at 31 December 2011 3,588 5,868 (7) 359 13 338 10,159Profit contribution and movements between funds – 169 – – 169 (338) –Revaluation difference – – 27 – – – 27Fund utilisation – – – – (166) – (166)Net profit for the current period – – – – – 261 261As at 31 December 2012 3,588 6,037 20 359 16 261 10,281

Profit for 2011 was distributed in 2012 according to the founder’s approval.

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10. Provisions

(CZK million) Balance as at Charge Release/use Balance as at Charge Release/use Balance as at1 January 31 December 31 December

2011 2011 2012Social and health insurance 95 154 (95) 154 138 (154) 138Untaken holiday 140 169 (140) 169 196 (169) 196Employee benefits 190 – (12) 178 2 (9) 171Severance provision 336 124 (336) 124 78 (124) 78Non-claimable component of salaries – 236 – 236 181 (236) 181Other 116 6 (48) 74 18 (74) 18Total tax non-deductable provisions 877 689 (631) 935 613 (766) 782Repair provision 60 – (60) – – – –Total tax provisions 60 – (60) – – – –Total 937 689 (691) 935 613 (766) 782

The provision for social and health insurance is created mainly for contributions to the unpaid part ofcontracted wages, profit-related bonuses, untaken holiday and other salary benefits.

The Company creates a provision for employee benefits resulting from a collective agreement (see also Note3.17 – Employee benefits).

The Company also created a provision for the non-claimable component of salaries which is composed ofexpected extraordinary wage bonuses estimated by the Director General and an additional subjectivecomponent of salaries including individual agreed salary bonuses.

A provision for compensation for salaries payable to employees who would have to leave was created inconnection with the plan of gradual cuts in jobs. This plan was approved by the Management Board andannounced to the Company’s employees and unions.

Other provisions were primarily created to cover risks known as at 31 December 2012 and probable loss fromongoing litigations and out-of-court disputes and related obligations.

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11. Long-term liabilities

Long-term liabilities are represented by the deferred tax liability as at 31 December 2012 and 31 December 2011,which is described in Note 15 – Income tax.

12. Short-term liabilities

The Company’s overdue short-term liabilities as at 31 December 2012 and 31 December 2011 amounted toCZK 48 million and CZK 49 million, respectively.

The Company had no liabilities due after more than 5 years as at 31 December 2012 and 31 December 2011.The Company had no short-term or long-term liabilities bearing a security or lien in favour of a creditor as at31 December 2012 and 31 December 2011.

Liabilities to related parties are described in Note 21 – Related party transactions.

The estimated payable particularly consists of costs associated with international postal operations, wherebalances of transactions as at 31 December 2012 amounted to CZK 488 million and CZK 450 million as at 31 December 2011. Estimated payables also included uninvoiced operating deliveries of services and energyand estimated staff bonuses.

Trade payables increased on a year-on-year basis mainly due to entrusted resources (see Note 23 – Entrustedresources).

Payables in respect of social insurance and health insurance amounted to CZK 326 million as at 31 December2012 and to CZK 334 million as at 31 December 2011. These payables comprise unpaid wages for December2012 and December 2011 respectively, which were paid at the beginning of 2013 and 2012.

The Company did not recognise any unpaid tax liabilities payable to the relevant tax authority as at 31 December 2012 and 31 December 2011.

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13. Bank loans and overdrafts

13.1. Denominated in Czech crowns

Bank Terms and conditions Account Overall limit 31 December 2012 31 December 2011(CZK million) (CZK million) (CZK million)

KB, a.s.* Global credit line Own resources 150 – –ČSOB, a. s. Bank overdraft Own resources 100 – –ČSOB, a. s. Bank overdraft Entrusted resources 1,600 – –* it can be used in foreign currency in the appropriate consideration

The global credit line from Komerční banka, a.s. allows for overdrafts, short-term loans on the financialmarket, documentary letters of credit and different types of guarantees. As at 31 December 2012 and 31 December 2011, the overdraft from Komercni banka, a.s. was not used.

The bank overdraft from ČSOB, a. s. was not used as at 31 December 2012 and 31 December 2011. Thisoverdraft is secured by pledge on the Company’s receivables from ČSOB, a. s. created under a contract forprovision of services by the Company to ČSOB, a. s.

13.2. Denominated in EUR

Bank Terms/Conditions Overall limit 2012 2011(EUR million) (EUR million) (CZK million) (EUR million) (CZK million)

ČSOB, a. s. Bank overdraft EURIBOR 3M + 5 1.2 31 1.2 320.1% p.a. – entrusted resources

The above-mentioned bank overdraft is exclusively used for cash operations of the banking services providedat selected post-office counters provided in EUR. No collateral was required for the bank overdraft.

The Company complies with all the terms and conditions of the loan agreements.

14. Accruals and deferred income

Accruals consist particularly of accrued compensation for agency services.

Deferred income primarily includes prepaid postal fees for offsetting remote credit machines.

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15. Income tax

(CZK million) 2012 2011Net profit before taxation 306 419Non-taxable income (51) (128)Difference between accounting and tax depreciation (105) (196)Tax non-deductible expenses (83) 233

of which:– Changes of impairments 2 112– Changes of provisions (152) 58– Other (e.g. previous prepaid expenses, representation expenses, shortages and losses) 67 63

Gifts (2) (2)Taxable income 65 326Income tax rate 19% 19%Calculated income tax 12 62Tax relief (persons with disability or partial disability) (8) (9)Current tax 4 53Underpayments from the previous period (1) 28Income tax expense 3 81

of which:– from ordinary activities 3 81

The deferred tax asset/ (liability) is calculated using the 19% tax rate (for both years) and quantified as follows:

Deferred tax item 2012 2011Basis Deferred Deferred Basis Deferred Deferred

tax asset tax liability tax asset tax liability(CZK million) (CZK million) (CZK million) (CZK million) (CZK million) (CZK million)

Difference between accounting and tax net book value of fixed assets (2,533) – (481) (2,407) – (457)Provisions 318 60 – 343 65 –Other reserves 782 149 – 879 167 –Total (1,433) 209 (481) (1,185) 232 (457)Net deferred tax liability (272) (225)

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16. Leases

The Company leases fixed assets, which are not recorded in the balance sheet accounts (see Note 3.12 – Leasesand Note 17 Assets and liabilities not recorded in the balance sheet).

The assets leased by the Company in the form of operational lease amounted to CZK 65 million as at 31 December 2012 and CZK 29 million as at 31 December 2011.

The Company recorded no financial leases as at 31 December 2012 and 31 December 2011.

17. Assets and liabilities not recorded in the balance sheet

The Company recognises particularly stamps, vignettes and lottery tickets, which are valuables in natureevidences, in operational evidence as at 31 December 2012 and 31 December 2011. Furthermore, theCompany recognised leased and low-value assets that are not included in the balance sheet, and all probablypermanently devalued investments containing 233,630 shares of IPB, a.s. (currently IP Exit, a.s.) at a totalnominal value of CZK 23 million and the acquisition cost of CZK 40 million in its operational records.

(CZK million) 2012 2011Valuables incl. stamps and lottery tickets 10,121 9,152Vignettes 4,109 4,059Leased assets – operational lease 512 260Securities 40 40Low-value tangible assets 2,390 2,538Low-value intangible assets 114 119

The structure of the contracted future obligations from operating lease is presented in the table below (CZK million):

31 December 2012 31 December 2011Due within 1 year 79 47Due between 1 to 5 years 244 117Due after 5 years – –Total 323 164

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18. Contingent liabilities

The Management Board is not aware of any material contingent liabilities of the Company as at 31 December 2012.

19. Revenue analysis

The Company’s revenues from its main activities were as follows:

(CZK million) 2012 2011Domestic Foreign Total Domestic Foreign Total

Sales from postal operations 13,451 1,198 14,649 13,735 1,217 14,952Sales of agency services 2,768 – 2,768 2,469 – 2,469Sales of goods without communication infrastructure 253 – 253 452 – 452Other revenues from operations activities, inc. activation, communication infrastructure and data mailboxes 2,513 – 2,513 2,905 – 2,905Total revenues from the ordinary activities 18,985 1,198 20,183 19,561 1,217 20,778

The main revenues include gross revenues related to services connected with management of communicationinfrastructure. Appropriate related costs are recorded as part of the item Other services.

In 2012 and 2011, the Company received subsidies for operating purposes in the amount of CZK 2 million andCZK 9 million respectively. These revenues are part of Other operating revenues.

20. Employees

Breakdown of staff costs:

2012 2011Total number Out of which: Total number Out of which: of employees Management of employees Management

Average number of employees 32,163 7 33,202 5(CZK million)Wages and salaries 9,092 41 9,359 33Social and health insurance 2,988 3 3,041 5Social security costs 333 – 333 –Total staff costs 12,413 44 12,733 38

Staff costs of the Company’s Management are disclosed without competing clauses.

Besides the above-mentioned staff costs, members and former members of statutory and supervisory bodiesreceived bonuses in the total amount of CZK 12 million and CZK 8 million in 2012 and 2011, respectively.

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21. Related party transactions

Apart from the bonuses disclosed in Note 20 – Employees, in 2012 and 2011, members and former membersof the Company’s statutory and supervisory bodies and the Company’s managers did not receive any loans,guarantees, advance payments or other benefits besides the collective agreement. They did, however, haveaccess to Company’s cars that are made available for both business and private purposes by management.During the year, the Company executed several transactions with related parties within its ordinary businessactivities. The transactions recognised in 2012 and 2011 and the related receivables from and liabilities torelated parties are as follows:

2012 Sales Purchase Receivables Payables(CZK million) (CZK million) (CZK million) (CZK million)

SubsidiaryPoštovní tiskárna cenin Praha a.s. 1 30 – 1ABAS CiT Management s.r.o.* 1 – 18 –Other related partiesCzech Television and Czech Radio 245 2 – 7Government ministries 1,698 1 230 50Czech Social Security Administration 524 2,156 – 7,237Municipal and local authorities 286 67 17 241State Fund of Transport Infrastructure 118 1 27 466Total 2,873 2,257 292 8,002* The shares were transferred as at 31 August 2012.

2011 Sales Purchase Receivables Payables(CZK million) (CZK million) (CZK million) (CZK million)

SubsidiaryPoštovní tiskárna cenin Praha a.s. 1 34 – 1Other related partiesCzech Television and Czech Radio 246 2 – 12Government ministries 1,608 2 432 55Czech Social Security Administration 554 2,198 – 2,347Municipal and local authorities 418 58 14 328State Fund for Transport Infrastructure 105 1 30 520Total 2,932 2,295 476 3,263

Receivables/revenues to (from) Poštovní tiskárna cenin Praha a.s. relate mainly to the provision of rentalservices, Liabilities/ then cost related mainly to purchase/ consumption of raw materials.

Receivables to ABAS CiT Management s.r.o. are mainly related to the loan provided to this company.

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22. fees paid and payable to the audit company

Total fees paid and payable to the audit company for the statutory audit of financial statements and audit inaccordance with IFRS for 2012 and 2011 amounted to CZK 2 million.

23. Entrusted resources

The entrusted resources analysis as at 31 December 2012 and 31 December 2011 is as follows:

(CZK million) 31 December 2012 31 December 2011ASSETSShort-term receivables 296 346Cash in hand 4,176 4,026Cash in bank 5,433 766Total 9,905 5,138

(CZK million) 31 December 2012 31 December 2011LIABILITIESShort-term payables 9,874 5,106Short-term bank loans 31 32Total 9,905 5,138

Short-term receivables consist primarily of short-term receivables for agency services (e.g. card transactions,cheque transactions, etc.) provided to ČSOB, a. s.

At the end of 2012 and 2011, the Company received advance payments in the amount of CZK 6,900 million andCZK 2,011 million from the Czech Social Security Administration for 2012 and 2011 for pension payments,respectively.

All these liabilities in respect of entrusted resources were within the maturity period.

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24. Cash-flow statement

As at 31 December 2012 and 31 December 2011, the Company did not consider the used overdraft facilities ascash equivalents for the purpose of the cash-flow statement (see Note 13 – Bank loans and overdrafts).

Cash and cash equivalents disclosed in the Cash-flow statement can be analysed as follows:

(CZK ’000) 31 December 2012 31 December 2011Cash on hand 4,176 4,108Cash in bank 8,173 3,339Cash equivalents included in short-term investments 750 1,203Total cash and cash equivalents 13,099 8,650

25. Subsequent events

As at 4 February 2013 JUDr. Radek Šmerda was appointed as a Member of the Supervisory Board by the founder.

No other material events have occurred between the balance sheet date and the date of preparation of thefinancial statements that would have a material impact on the financial statements as at 31 December 2012.

11 March 2013

Ing. Petr Zatloukal, MSc., MBADirector General Česká pošta, s.p.

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INDEPENDENT AUDITOR’S

REPORT

Independent auditor’s report

to the founder of Česká pošta, s.p.

We have audited the financial statements of Česká pošta, s.p., identification number 47114983, with registered office at Politických vězňů 909/4,Praha 1 (“the Company”) for the year ended 31 December 2012 disclosed in the annual report on pages 72 to 105 and issued the opinion dated 11 March 2013 and disclosed on page 70.

Report on the Annual ReportWe have verified that the other information included in the annual report of the Company for the year ended 31 December 2012 is consistent with thefinancial statements. The General Director is responsible for the accuracy of the annual report. Our responsibility is to express an opinion on theconsistency of the annual report with the financial statements based on our verification procedures.

Auditor’s ResponsibilityWe conducted our verification procedures in accordance with the International Standards on Auditing and the related application guidance of theChamber of Auditors of the Czech Republic. Those standards require that we plan and perform the verification procedures to obtain reasonableassurance about whether the other information included in the annual report which describes matters that are also presented in the financialstatements is, in all material respects, consistent with the relevant financial statements. We believe that the verification procedures performedprovide a reasonable basis for our opinion.

OpinionIn our opinion, the other information included in the annual report of the Company for the year ended 31 December 2012 is consistent, in all materialrespects, with the financial statements.

21 June 2013

PricewaterhouseCoopers Audit, s.r.o.represented by partner

Věra VýtvarováStatutory Auditor, Licence No. 1930

Translation note This version of our report is a translation from the original, which was prepared in the Czech language. All possible care has been taken to ensure that the translation is an accurate representationof the original. However, in all matters of interpretation of information, views or opinions, the Czech version of our report takes precedence over this translation.

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Company name Česká pošta, s.p. Registered office Politických vězňů 909/4, Praha 1, 225 99 Identification Number 47114983 Tax identification number CZ 47114983 Registration court Městský soud v Praze Company’s registration number vložka 7565, oddíl A Call Centre 800 10 44 10 Prague information centre +420 221 131 111E-mail address info@cpost.czData mailbox ID kr7cdryWebsite www.ceskaposta.cz

Region Prague Bystřická 9, 140 00 Praha 4 Region Central Bohemia Poštovní nám. 2357, 272 01 KladnoRegion South Bohemia Senovážné náměstí 240/1, 378 01 České Budějovice Region West Bohemia Solní 260/20, 301 00 Plzeň Region North Bohemia Berní 2119, 401 01 Ústí nad Labem Region East Bohemia Na Hrádku 105, 530 02 Pardubice 1 Region South Moravia Orlí 655/30, 663 00 Brno Region North Moravia Poštovní 1368/20, 728 60 Ostrava

CONTACTDETAILS

109

ABBREVIATIONSUSED

APDO Automated parcel delivery outletBp Percentage pointCADR – IS VZ Central Address – Official Site of Public ContractsCCTV Closed circuit television systemCMS Shared services centreČNB Czech National BankCNG Compressed natural gasCPP Crisis Preparedness PlanCTO Czech Telecommunication OfficeCzech POINT National network of submitting and verifying

information terminalsD+3 Delivered by the third day after postingD+5 Delivered by the fifth day after postingDG Director GeneralDHM Small-value tangible assetsDNM Small-value intangible assetsDONEZ Sign-on system for job seekersEMS Express Mail ServiceES European directiveEU European UnionEVO Electronic bulletin board for municipalitiesFKSP Fund for cultural and social needsGDP Gross domestic productGECOMM Conference of European Communications MuseumsGPS Global positioning systemHW HardwareIATM International Association of Transport

and Communications Museums ICT Information and communication technologiesISDS Data Mailbox Information SystemISO International Organisation for StandardisationISVS Information system of the Czech public administrationITSM IT service managementKS Crisis situationsLAN Local area network

ABBREVIATIONSUSED

OVZ Other public contractsPC Personal computer PDZ Postal data messagePES Monitoring of operational and financial processes at post officesPM Postal MuseumPostEurop Association of European public postal operatorsQCA Qualified certification authorityREP Registered electronic postRIPM Distribution of information and promotional materialsRZPS Distribution of promotional and information materialsSB Supervisory BoardSČF Union of Czech PhilatelistsSIPO Multiple direct debit payments via the Company’s

payment systemSME Small and medium-sized enterprisesSMS short message service SPU Logistic hubSW SoftwareTP Severe disability (applies to holders of extraordinary

benefits card)UNEX Quality of service measurement system

for public postal operators USB universal serial bus VAT Value added taxVCA Public certification authorityZOH Winter Olympic GamesZUŠ Elementary School of Art

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Consulting of content, design, and production: © B.I.G. Prague, 2013

FSC-certified paper was used in the production of this Annual Report

unicipalities and cooperatives have already taken 60 post offices under their wing e15.cz, 27 August 2012 You’ve been working at the post office for five years now. How will things change during the next five? E15, 14 May 2012 Mafra and Ringier choose Česká pošta Marketing & Media, 27 August 2012 Česká pošta has hired 2,500 new letter carriers. Starting in October, it is taking up deliv-ery of daily newspapers to subscribers… once again, after a 20-year hiatus ČT24, Business, 5 October 2012 Survey: People trust the post office; advertising there “works” tyden.cz, 23 August 2012 “Five rolls, please… and I’ve got a letter to pick up.” Orlický deník, 25 January 2013 The postal service announces another IT tender – this time valued at CZK 3 billion Lidové noviny, 23 October 2012Both historians and letter carriers are signed under an exhibition of unique historical photographs… decinsky.denik.cz, 23 January 2012 Mediaservis cancels its newspaper delivery service; Česká pošta comes to the rescue ČT24, 2 October 2012 Post office moving into shopping centers Ústecký deník, 5 January 2012 Head of Česká pošta: In the future, the post office will take passengers Fi-nanční noviny, 20 October 2012 Post office promises to deliver parcels anywhere – even in the evening novinky.cz, 3 January 2012 Letter carriers can’t deliver mail and danger lurks for village residents, too denik.cz, 31 March 2012 A flawless eavesdropping device at the Main Post Office! A long-eared bat ecomonitor.cz, 22 March 2012 Česká pošta launches new advertising and, for the firsttime, it’s not animated ihned.cz, 15 November 2012 Česká pošta keeps promise it gave customers in autumn of last year ČRo Sever, 9 January 2012 In Liberec, the Česká Pošta Hockey Cup 2012 showcases the most promising up-and-coming talents in Czech hockey RTM TV, 21 December 2012 Česká pošta to offer assistance to those in debt novinky.cz, 18 October 2012 Electric cars find aplace in city logistics Logistika, 4 September 2012 Česká pošta reports that the world’s automobiles are in high demand at post offices Parlamentní listy, 3 November 2012 The post office will cancel stamps using an Olympic-themed hand stamp Finanční noviny, 17 August 2012 On-line shopping abroad: customs duty and VAT, and when you’ll pay the post office a CZK 96 surcharge Lupa.cz,16 November 2012 Complete liberalization of the Czech postal market. Should we be scared? parlamentnilisty.cz, 20 November 2012 Customers prefer scheduling flexibility Logistika, 20 November 2012 Česká pošta launches e-market parlamentnilisty.cz, 6 November 2012 Česká pošta raises its public profile ahead of postal market opening e15.cz, 15 November 2012 Stamp christening arare event chrudimskenoviny.cz, 4 November 2012 Česká pošta issued its first film stamp with Four-leaf Clover tyden.cz, 13 November 2012 No more waiting, post office promises Mostkovice Prostějovský deník, 23 November 2012 Christmas windfall with Česká pošta, or “30 days of plenty” parlamentnilisty.cz, 13 November 2012 Jarohněvice residents don’t mind post office closing; lettercarriers are enough for them denik.cz, 1 November 2012 Four-leaf Clover in the services of the post office ČT24, 13 November 2012 The postal service wants government budget funds for information technology Hospodářské noviny, 9 November 2012 Interview with Ivo Mravinac Radiožurnál, 21 December 2012 Polish parcel machines to compete with Česká pošta branches Hospodářskénoviny, 21 December 2012 DINO yields good results; Česká pošta’s new service gets debtors’ attention parlamentnilisty.cz, 29 October 2012 Most beautiful postage stamp in the world is from the Czech Republic parlamentnilisty.cz, 12 October 2012 Česká pošta defuses newspaper distribution crisis Jihlavské listy, 5 October 2012 Česká pošta posts good half-year financial figures Dopravnínoviny, 27 September 2012 In the liberalized market, anyone can become a postal services operator Dopravní noviny, 27 September 2012 Postal maneuvers ČT 1, 25 August 2012 Česká pošta’s losses to be covered by its competition. Will that improve quality of postal services? podnikatel.cz, 15 August 2012 Česká pošta as a media outlet: Do people like going to the post office? Marketing &Media, 30 July 2012 Village post offices endangered – again denik.cz, 16 December 2012 Letters need not be delivered by letter carriers alone Pražský deník, 19 December 2012 Wave of the future: post office and town hall in one Jihlavské listy, 11 December 2012 Postal Savings Bank customers to have comfort and privacy at the post office, too parlamentnilisty.cz, 30 December 2012 Om-budsman tried, but government didn’t back down: unemployed still have to register at the post office tyden.cz, 11 December 2012 Three thousand temp workers to help deliver Christmas parcels Jablonecký deník, 3 December 2012 Postal service’s competitors afraid of its prices Marketing & Media, 10 December 2012 Opening of postal market can cut companies’ costs by up to one fifthČT24, 17 December 2012 Czechs discover Slovak and German e-shops. On the other hand, number of parcels from USA is falling zpravy.ihned.cz, 7 December 2012 Christmas parcel? Get it in the mail no later than 18 December ČT24, 15 December 2012 Post offices in West Bohemia undergoing modernization; people must wait in long lines plzen.idnes.cz, 19 December 2012 Post officescreate special teller windows for Postal Savings Bank tyden.cz, 16 December 2012 Pre-Christmas Europe seized with parcel mania ČT24, 10 December 2012 Elections 2013 – Jan Fischer at every post office, statistically speaking ceskamedia.cz, 6 December 2012 160,000 parcels a day not a record Pražský deník, 19 December 2012 Motorway stickers available at post offices Berounskýdeník, 18 December 2012 For postal service, Christmas begins one month early parlamentnilisty.cz, 17 November 2012 I’d like to get married. One of this year’s wishes on Baby Jesus stamp vary.idnes.cz, 27 December 2012 Next year, Česká pošta plans to buy 950,000 vehicles – that’s 200,000 more than this year auto.cz, 23 October 2012 Postal depot in Staré Město likely to bring new jobsSlovácký deník, 14 August 2012 Christmas fever running high at post offices as extraordinarily high number of parcels sent idnes.cz, 5 November 2012 Postal service to completely revamp its logistics network E15, 13 March 2012 Postal service increases capital spending ihned.cz, 20 March 2012 Parcels drive Česká pošta 59% profit growth e15.cz, 29 March 2012 Debt resolution in newclothes! Česká pošta becomes creditors’ ally penize.cz, 17 July 2012 Česká pošta offers help to people in debt novinky.cz, 18 October 2012 Česká pošta: debt collection project a success kurzy.cz, 18 October 2012 Villages look to save their post offices from closure Klatovský deník, 28 July 2012 Czech application for data mailboxes on Windows Phone palmserver.cz, 18 September 2012Postal service now lets you track letters by smartphone aktualne.centrum.cz, 9 February 2012 Postal service preparing to take on State IT administrator role E15, 17 August 2012 Postal service wants its share of government IT money Hospodářské noviny, 9 November 2012 Česká pošta rescues newspaper distribution Jihlavské listy, 5 October 2012 Česká pošta hires 2,500 new letter carri-ers ČT24, 5 October 2012 Kind customers predominate, says post office teller Plzeňský deník, 4 August 2012 U.S. economists tested the world’s posts, and the Czech one excelled idnes.cz, 9 August 2012 Soak off carefully. Stamps are here to stay brnensky.denik.cz, 2 July 2012 Postal service allowed political advertisements in its branches, Fischer featured idnes.cz, 16 October 2012 HRManagers’ prize for best HR project of 2012 Hospodářské noviny, 18 October 2012 Jiří Peterka: Data messages to cost “just” CZK 10. Starting in January tech.ihned.cz, 23 October 2012 We take the agreement between the Union of Towns and Municipalities and Česká pošta seriously parlamentnilisty.cz, 26 November 2012 Three companies win Česká pošta CZK 0.5 billion IT tender ČT24, 1October 2012 Both historians and letter carriers are signed under an exhibition of unique historical photographs decinsky.denik.cz, 23 January 2012 Dogs no longer bark at mail carrier Náchodský deník, 9 October 2012 In addition to track-and-trace, the application can automatically determine the smartphone’s location and provide directions to the nearest post office aktualne.centrum.cz, 9February 2012 Head of Česká pošta Petr Zatloukal predicts that traditional postal services will comprise just one third of his business – the rest will be financial and IT services Mladá fronta Dnes, 7 May 2012 New service should minimize number of cases when people find themselves in foreclosure proceedings over just a couple of crowns Prima family, evening news, 19 October 2012 Newbranches to bring customer comfort. They’ll be open all weekend long! Ústecký deník, 5 January 2012 Municipalities and cooperatives have already taken 60 post offices under their wing e15.cz, 27 August 2012 Postal service building a parcel and letter sorting facility in Kroměříž kromerizsky.denik.cz, 6 December 2012 Postal service to build parking lot by depot ceskolipsky.denik.cz, 21 De-cember 2012 Česká pošta begins selling one-year motorway stickers for 2013 parlamentnilisty.cz, 28 November 2012 Parcel revolution was ethical logistika.ihned.cz, 20 March 2012 In small towns, postal services could be offered by town halls and/or chain stores ČRo - Pilsen, 13 July 2012 Test of postal services: who delivered egg without breaking it aktualne.centrum.cz, 19 March 2012Mail carrier heard call for help: senior citizen had been lying on the floor for nearly a week idnes.cz, 23 March 2012 See post office in Rochlice go up Liberecký deník, 2 January 2012 To the post office on Sunday ČRo - Sever, 7 January 2012 People will be able to pick up their parcels from self-service boxes, even at 2:00 a.m. Český rozhlas Ostrava, 9 February 2012 Municipalities and cooper-atives have already taken 60 post offices under their wing e15.cz, 27 August 2012 You’ve been working at the post office for five years now. How will things change during the next five? E15, 14 May 2012 Mafra and Ringier choose Česká pošta Marketing & Media, 27 August 2012 Česká pošta has hired 2,500 new letter carriers. Starting in October, it is taking up delivery of daily newspapers tosubscribers… once again, after a 20-year hiatus ČT24, Business, 5 October 2012 Survey: People trust the post office; advertising there “works” tyden.cz, 23 August 2012 “Five rolls, please… and I’ve got a letter to pick up.” Orlický deník, 25 January 2013 The postal service announces another IT tender – this time valued at CZK 3 billion Lidové noviny, 23 October 2012 Both historians and lettercarriers are signed under an exhibition of unique historical photographs… decinsky.denik.cz, 23 January 2012 Mediaservis cancels its newspaper delivery service; Česká pošta comes to the rescue ČT24, 2 October 2012 Post office moving into shopping centers Ústecký deník, 5 January 2012 Head of Česká pošta: In the future, the post office will take passengers Finanční noviny, 20 October2012 Post office promises to deliver parcels anywhere – even in the evening novinky.cz, 3 January 2012 Letter carriers can’t deliver mail and danger lurks for village residents, too denik.cz, 31 March 2012 A flawless eavesdropping device at the Main Post Office! A long-eared bat ecomonitor.cz, 22 March 2012 Česká pošta launches new advertising and, for the first time, it’s not animatedihned.cz, 15 November 2012 Česká pošta keeps promise it gave customers in autumn of last year ČRo Sever, 9 January 2012 In Liberec, the Česká Pošta Hockey Cup 2012 showcases the most promising up-and-coming talents in Czech hockey RTM TV, 21 December 2012 Česká pošta to offer assistance to those in debt novinky.cz, 18 October 2012 Electric cars find a place in city logisticsLogistika, 4 September 2012 Česká pošta reports that the world’s automobiles are in high demand at post offices Parlamentní listy, 3 November 2012 The post office will cancel stamps using an Olympic-themed hand stamp Finanční noviny, 17 August 2012 On-line shopping abroad: customs duty and VAT, and when you’ll pay the post office a CZK 96 surcharge Lupa.cz, 16 November 2012Complete liberalization of the Czech postal market. Should we be scared? parlamentnilisty.cz, 20 November 2012 Customers prefer scheduling flexibility Logistika, 20 November 2012 Česká pošta launches e-market parlamentnilisty.cz, 6 November 2012 Česká pošta raises its public profile ahead of postal market opening e15.cz, 15 November 2012 Stamp christening a rare eventchrudimskenoviny.cz, 4 November 2012 Česká pošta issued its first film stamp with Four-leaf Clover tyden.cz, 13 November 2012 No more waiting, post office promises Mostkovice Prostějovský deník, 23 November 2012 Christmas windfall with Česká pošta, or “30 days of plenty” parlamentnilisty.cz, 13 November 2012 Jarohněvice residents don’t mind post office closing; letter carriers areenough for them denik.cz, 1 November 2012 Four-leaf Clover in the services of the post office ČT24, 13 November 2012 The postal service wants government budget funds for information technology Hospodářské noviny, 9 November 2012 Interview with Ivo Mravinac Radiožurnál, 21 December 2012 Polish parcel machines to compete with Česká pošta branches Hospodářské noviny, 21 De-cember 2012 DINO yields good results; Česká pošta’s new service gets debtors’ attention parlamentnilisty.cz, 29 October 2012 Most beautiful postage stamp in the world is from the Czech Republic parlamentnilisty.cz, 12 October 2012 Česká pošta defuses newspaper distribution crisis Jihlavské listy, 5 October 2012 Česká pošta posts good half-year financial figures Dopravní noviny, 27September 2012 In the liberalized market, anyone can become a postal services operator Dopravní noviny, 27 September 2012 Postal maneuvers ČT 1, 25 August 2012 Česká pošta’s losses to be covered by its competition. Will that improve quality of postal services? podnikatel.cz, 15 August 2012 Česká pošta as a media outlet: Do people like going to the post office? Marketing & Media, 30July 2012 Village post offices endangered – again denik.cz, 16 December 2012 Letters need not be delivered by letter carriers alone Pražský deník, 19 December 2012 Wave of the future: post office and town hall in one Jihlavské listy, 11 December 2012 Postal Savings Bank customers to have comfort and privacy at the post office, too parlamentnilisty.cz, 30 December 2012 Ombudsmantried, but government didn’t back down: unemployed still have to register at the post office tyden.cz, 11 December 2012 Three thousand temp workers to help deliver Christmas parcels Jablonecký deník, 3 December 2012 Postal service’s competitors afraid of its prices Marketing & Media, 10 December 2012 Opening of postal market can cut companies’ costs by up to one fifth ČT24, 17 De-cember 2012 Czechs discover Slovak and German e-shops. On the other hand, number of parcels from USA is falling zpravy.ihned.cz, 7 December 2012 Christmas parcel? Get it in the mail no later than 18 December ČT24, 15 December 2012 Post offices in West Bohemia undergoing modernization; people must wait in long lines plzen.idnes.cz, 19 December 2012 Post offices create specialteller windows for Postal Savings Bank tyden.cz, 16 December 2012 Pre-Christmas Europe seized with parcel mania ČT24, 10 December 2012 Elections 2013 – Jan Fischer at every post office, statistically speaking ceskamedia.cz, 6 December 2012 160,000 parcels a day not a record Pražský deník, 19 December 2012 Motorway stickers available at post offices Berounský deník, 18 Decem-ber 2012 For postal service, Christmas begins one month early parlamentnilisty.cz, 17 November 2012 I’d like to get married. One of this year’s wishes on Baby Jesus stamp vary.idnes.cz, 27 December 2012 Next year, Česká pošta plans to buy 950,000 vehicles – that’s 200,000 more than this year auto.cz, 23 October 2012 Postal depot in Staré Město likely to bring new jobs Slovácký deník,14 August 2012 Christmas fever running high at post offices as extraordinarily high number of parcels sent idnes.cz, 5 November 2012 Postal service to completely revamp its logistics network E15, 13 March 2012 Postal service increases capital spending ihned.cz, 20 March 2012 Parcels drive Česká pošta 59% profit growth e15.cz, 29 March 2012 Debt resolution in new clothes! Českápošta becomes creditors’ ally penize.cz, 17 July 2012 Česká pošta offers help to people in debt novinky.cz, 18 October 2012 Česká pošta: debt collection project a success kurzy.cz, 18 October 2012 Villages look to save their post offices from closure Klatovský deník, 28 July 2012 Czech application for data mailboxes on Windows Phone palmserver.cz, 18 September 2012 Postal service nowlets you track letters by smartphone aktualne.centrum.cz, 9 February 2012 Postal service preparing to take on State IT administrator role E15, 17 August 2012 Postal service wants its share of government IT money Hospodářské noviny, 9 November 2012 Česká pošta rescues newspaper distribution Jihlavské listy, 5 October 2012 Česká pošta hires 2,500 new letter carriers ČT24, 5 October2012 Kind customers predominate, says post office teller Plzeňský deník, 4 August 2012 U.S. economists tested the world’s posts, and the Czech one excelled idnes.cz, 9 August 2012 Soak off carefully. Stamps are here to stay brnensky.denik.cz, 2 July 2012 Postal service allowed political advertisements in its branches, Fischer featured idnes.cz, 16 October 2012 HR Managers’ prize forbest HR project of 2012 Hospodářské noviny, 18 October 2012 Jiří Peterka: Data messages to cost “just” CZK 10. Starting in January tech.ihned.cz, 23 October 2012 We take the agreement between the Union of Towns and Municipalities and Česká pošta seriously parlamentnilisty.cz, 26 November 2012 Three companies win Česká pošta CZK 0.5 billion IT tender ČT24, 1 October 2012 Bothhistorians and letter carriers are signed under an exhibition of unique historical photographs decinsky.denik.cz, 23 January 2012 Dogs no longer bark at mail carrier Náchodský deník, 9 October 2012 In addition to track-and-trace, the application can automatically determine the smartphone’s location and provide directions to the nearest post office aktualne.centrum.cz, 9 February 2012Head of Česká pošta Petr Zatloukal predicts that traditional postal services will comprise just one third of his business – the rest will be financial and IT services Mladá fronta Dnes, 7 May 2012 New service should minimize number of cases when people find themselves in foreclosure proceedings over just a couple of crowns Prima family, evening news, 19 October 2012 New branches tobring customer comfort. They’ll be open all weekend long! Ústecký deník, 5 January 2012 Municipalities and cooperatives have already taken 60 post offices under their wing e15.cz, 27 August 2012 Postal service building a parcel and letter sorting facility in Kroměříž kromerizsky.denik.cz, 6 December 2012 Postal service to build parking lot by depot ceskolipsky.denik.cz, 21 December 2012Česká pošta begins selling one-year motorway stickers for 2013 parlamentnilisty.cz, 28 November 2012 Parcel revolution was ethical logistika.ihned.cz, 20 March 2012 In small towns, postal services could be offered by town halls and/or chain stores ČRo - Pilsen, 13 July 2012 Test of postal services: who delivered egg without breaking it aktualne.centrum.cz, 19 March 2012 Mail carrierheard call for help: senior citizen had been lying on the floor for nearly a week idnes.cz, 23 March 2012 See post office in Rochlice go up Liberecký deník, 2 January 2012 To the post office on Sunday ČRo - Sever, 7 January 2012 People will be able to pick up their parcels from self-service boxes, even at 2:00 a.m. Český rozhlas Ostrava, 9 February 2012 Municipalities and cooperatives havealready taken 60 post offices under their wing e15.cz, 27 August 2012 You’ve been working at the post office for five years now. How will things change during the next five? E15, 14 May 2012 Mafra and Ringier choose Česká pošta Marketing & Media, 27 August 2012 Česká pošta has hired 2,500 new letter carriers. Starting in October, it is taking up delivery of daily newspapers to sub-scribers… once again, after a 20-year hiatus ČT24, Business, 5 October 2012 Survey: People trust the post office; advertising there “works” tyden.cz, 23 August 2012 “Five rolls, please… and I’ve got a letter to pick up.” Orlický deník, 25 January 2013 The postal service announces another IT tender – this time valued at CZK 3 billion Lidové noviny, 23 October 2012 Both historians and lettercarriers are signed under an exhibition of unique historical photographs… decinsky.denik.cz, 23 January 2012 Mediaservis cancels its newspaper delivery service; Česká pošta comes to the rescue ČT24, 2 October 2012 Post office moving into shopping centers Ústecký deník, 5 January 2012 Head of Česká pošta: In the future, the post office will take passengers Finanční noviny, 20 October2012 Post office promises to deliver parcels anywhere – even in the evening novinky.cz, 3 January 2012 Letter carriers can’t deliver mail and danger lurks for village residents, too denik.cz, 31 March 2012 A flawless eavesdropping device at the Main Post Office! A long-eared bat ecomonitor.cz, 22 March 2012 Česká pošta launches new advertising and, for the first time, it’s not animatedihned.cz, 15 November 2012 Česká pošta keeps promise it gave customers in autumn of last year ČRo Sever, 9 January 2012 In Liberec, the Česká Pošta Hockey Cup 2012 showcases the most promising up-and-coming talents in Czech hockey RTM TV, 21 December 2012 Česká pošta to offer assistance to those in debt novinky.cz, 18 October 2012 Electric cars find a place in city logisticsLogistika, 4 September 2012 Česká pošta reports that the world’s automobiles are in high demand at post offices Parlamentní listy, 3 November 2012 The post office will cancel stamps using an Olympic-themed hand stamp Finanční noviny, 17 August 2012 On-line shopping abroad: customs duty and VAT, and when you’ll pay the post office a CZK 96 surcharge Lupa.cz, 16 November 2012Complete liberalization of the Czech postal market. Should we be scared? parlamentnilisty.cz, 20 November 2012 Customers prefer scheduling flexibility Logistika, 20 November 2012 Česká pošta launches e-market parlamentnilisty.cz, 6 November 2012 Česká pošta raises its public profile ahead of postal market opening e15.cz, 15 November 2012 Stamp christening a rare eventchrudimskenoviny.cz, 4 November 2012 Česká pošta issued its first film stamp with Four-leaf Clover tyden.cz, 13 November 2012 No more waiting, post office promises Mostkovice Prostějovský deník, 23 November 2012 Christmas windfall with Česká pošta, or “30 days of plenty” parlamentnilisty.cz, 13 November 2012 Jarohněvice residents don’t mind post office closing; letter carriers areenough for them denik.cz, 1 November 2012 Four-leaf Clover in the services of the post office ČT24, 13 November 2012 The postal service wants government budget funds for information technology Hospodářské noviny, 9 November 2012 Interview with Ivo Mravinac Radiožurnál, 21 December 2012 Polish parcel machines to compete with Česká pošta branches Hospodářské noviny, 21 De-cember 2012 DINO yields good results; Česká pošta’s new service gets debtors’ attention parlamentnilisty.cz, 29 October 2012 Most beautiful postage stamp in the world is from the Czech Republic parlamentnilisty.cz, 12 October 2012 Česká pošta defuses newspaper distribution crisis Jihlavské listy, 5 October 2012 Česká pošta posts good half-year financial figures Dopravní noviny, 27September 2012 In the liberalized market, anyone can become a postal services operator Dopravní noviny, 27 September 2012 Postal maneuvers ČT 1, 25 August 2012 Česká pošta’s losses to be covered by its competition. Will that improve quality of postal services? podnikatel.cz, 15 August 2012 Česká pošta as a media outlet: Do people like going to the post office? Marketing & Media, 30July 2012 Village post offices endangered – again denik.cz, 16 December 2012 Letters need not be delivered by letter carriers alone Pražský deník, 19 December 2012 Wave of the future: post office and town hall in one Jihlavské listy, 11 December 2012 Postal Savings Bank customers to have comfort and privacy at the post office, too parlamentnilisty.cz, 30 December 2012 Ombudsmantried, but government didn’t back down: unemployed still have to register at the post office tyden.cz, 11 December 2012 Three thousand temp workers to help deliver Christmas parcels Jablonecký deník, 3 December 2012 Postal service’s competitors afraid of its prices Marketing & Media, 10 December 2012 Opening of postal market can cut companies’ costs by up to one fifth ČT24, 17 De-cember 2012 Czechs discover Slovak and German e-shops. On the other hand, number of parcels from USA is falling zpravy.ihned.cz, 7 December 2012 Christmas parcel? Get it in the mail no later than 18 December ČT24, 15 December 2012 Post offices in West Bohemia undergoing modernization; people must wait in long lines plzen.idnes.cz, 19 December 2012 Post offices create specialteller windows for Postal Savings Bank tyden.cz, 16 December 2012 Pre-Christmas Europe seized with parcel mania ČT24, 10 December 2012 Elections 2013 – Jan Fischer at every post office, statistically speaking ceskamedia.cz, 6 December 2012 160,000 parcels a day not a record Pražský deník, 19 December 2012 Motorway stickers available at post offices Berounský deník, 18 Decem-ber 2012 For postal service, Christmas begins one month early parlamentnilisty.cz, 17 November 2012 I’d like to get married. One of this year’s wishes on Baby Jesus stamp vary.idnes.cz, 27 December 2012 Next year, Česká pošta plans to buy 950,000 vehicles – that’s 200,000 more than this year auto.cz, 23 October 2012 Postal depot in Staré Město likely to bring new jobs Slovácký deník,14 August 2012 Christmas fever running high at post offices as extraordinarily high number of parcels sent idnes.cz, 5 November 2012 Postal service to completely revamp its logistics network E15, 13 March 2012 Postal service increases capital spending ihned.cz, 20 March 2012 Parcels drive Česká pošta 59% profit growth e15.cz, 29 March 2012 Debt resolution in new clothes! Českápošta becomes creditors’ ally penize.cz, 17 July 2012 Česká pošta offers help to people in debt novinky.cz, 18 October 2012 Česká pošta: debt collection project a success kurzy.cz, 18 October 2012 Villages look to save their post offices from closure Klatovský deník, 28 July 2012 Czech application for data mailboxes on Windows Phone palmserver.cz, 18 September 2012 Postal service nowlets you track letters by smartphone aktualne.centrum.cz, 9 February 2012 Postal service preparing to take on State IT administrator role E15, 17 August 2012 Postal service wants its share of government IT money Hospodářské noviny, 9 November 2012 Česká pošta rescues newspaper distribution Jihlavské listy, 5 October 2012 Česká pošta hires 2,500 new letter carriers ČT24, 5 October2012 Kind customers predominate, says post office teller Plzeňský deník, 4 August 2012 U.S. economists tested the world’s posts, and the Czech one excelled idnes.cz, 9 August 2012 Soak off carefully. Stamps are here to stay brnensky.denik.cz, 2 July 2012 Postal service allowed political advertisements in its branches, Fischer featured idnes.cz, 16 October 2012 HR Managers’ prize forbest HR project of 2012 Hospodářské noviny, 18 October 2012 Jiří Peterka: Data messages to cost “just” CZK 10. Starting in January tech.ihned.cz, 23 October 2012 We take the agreement between the Union of Towns and Municipalities and Česká pošta seriously parlamentnilisty.cz, 26 November 2012 Three companies win Česká pošta CZK 0.5 billion IT tender ČT24, 1 October 2012 Bothhistorians and letter carriers are signed under an exhibition of unique historical photographs decinsky.denik.cz, 23 January 2012 Dogs no longer bark at mail carrier Náchodský deník, 9 October 2012 In addition to track-and-trace, the application can automatically determine the smartphone’s location and provide directions to the nearest post office aktualne.centrum.cz, 9 February 2012Head of Česká pošta Petr Zatloukal predicts that traditional postal services will comprise just one third of his business – the rest will be financial and IT services Mladá fronta Dnes, 7 May 2012 New service should minimize number of cases when people find themselves in foreclosure proceedings over just a couple of crowns Prima family, evening news, 19 October 2012 New branches tobring customer comfort. They’ll be open all weekend long! Ústecký deník, 5 January 2012 Municipalities and cooperatives have already taken 60 post offices under their wing e15.cz, 27 August 2012 Postal service building a parcel and letter sorting facility in Kroměříž kromerizsky.denik.cz, 6 December 2012 Postal service to build parking lot by depot ceskolipsky.denik.cz, 21 December 2012

Annual Report 2012

Česká pošta, s.p.

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