Contents
3 Mission,VisionandValues
4 BoardofDirectorsandCorporateInformation
6 Chairman(Designate)’sStatement
8 Management
10 ChiefExecutive’sReview
16 FinancialReview
18 UniversalService
21 Sustainability
25 StampIssuesandPhilatelicPublications
29 IndextotheFinancialStatements
3AN POST ANNUAL REPORT 2012
our mission
To provide world class postal, distribution and financial services with unrivalled local community access and global connections.
our vision
Working together as a united team, our ambition is to outperform the new competition we face, delivering a better quality service, more efficiently, to more customers by continuously adapting, innovating and implementing change.
our values
Quality Customer ServicePutthecustomerfirstineverythingwedo,consistentlydeliveringworldclassservicequality.
Commercial SuccessAchievecommercialsuccess,earningprofitsthatcansustainanddevelopthebusiness.
Cost Competitiveness & EfficiencyRunacostcompetitive,efficientoperation.
Respect & Personal ResponsibilityRespecteachotherandtakepersonalresponsibility.
Respected Corporate CitizenCarefortheenvironmentandbeengagedinthecommunityasrespectedcorporatecitizens.
Innovation & ChangeContinuallyinnovate,adaptandimplementchangesuccessfully.
an post annual report 2012
DOINGMORE
COMPETING
CHANGING CONTR
IBUT
ING
4 ANPOSTANNUALREPORT2012
BoaRD oF DIReCtoRs anD CoRPoRate InFoRMatIon
1. Christoph MuellerChairman Designateannounced as Chairman 26 March 2013MrMuellerjoinedAerLingusasitsChiefExecutiveOfficer(CEO)inSeptember2009.HepreviouslyheldthepositionofExecutiveAviationDirectoratTUITravelplc.,aFTSE100company.MrMuellerpreviouslyheldseniorexecutivepositionsinanumberofcompaniesintheaviationindustryincludingDaimlerBenzAerospaceandLufthansaAG.HeservedastheChiefFinancialOfficerofDHLWorldwidefrom2002to2004andbecameamemberoftheExecutiveCommitteeofDeutschePostAGin2004aftertheacquisitionofDHLbyDeutschePostAG.HeisamemberoftheBoardofTourismIreland.HehasanMBAfromtheUniversityofCologneandhealsocompletedanAdvancedManagementProgramatHarvardBusinessSchool.
2. Noel adamson Employee Directorappointed 1 November 2012MrAdamsonjoinedthePostOfficein1981asaPostmanintheCentralSortingOfficeinDublin’sSheriffStreet.HehasbeenemployedasaPostpersoninFairviewDeliveryServicesUnit3forthelast18years.ThroughouthisemploymenthehasbeenanactivememberoftheCommunicationsWorkers’Union.HeisthecurrentchairmanoftheStandingOrdersCommitteeandhealsoholdsthepositionsofAssistantSecretaryandHealth&SafetyOfficerwiththeDublinPostalDeliveryBranch.
3. Patrick ComptonEmployee Director - 1appointed 1 November 2012; Sixth termMrComptonhasworkedinthepostalserviceforthepast40yearsandhiscurrentpositionisthatofPartnershipCo-ordinator,basedinRoscommon.HewasamemberoftheNationalExecutiveoftheCommunicationsWorkersUnionfor22yearsanditsPresidentin1986.HewasalsoadirectorofThePrizeBondCompanyLimitedformanyyears.HeisactiveincommunitydevelopmentinhislocalareaandheistheCountyRoscommonGAACoaching&GamesDevelopmentOfficer.
4. Donal Connell, C.ENg., f.I.E.I., B.E.Director - 2, 3 appointed on 14 august 2006MrConnellwasappointedasChiefExecutiveon14August2006.HebeganhiscareerintheDepartmentofPostsandTelegraphsandhasheldseniormanagementpositionsinUnitrodeCorporation,3ComCorporationandMaxtorIrelandwherehewasGeneralManagerpriortojoiningAnPost.Heisanon-executiveDirectorofXilinxCorporation’sEuropeanBoardandheisChairmanofAnPostNationalLotteryCompany.
5. Thomas DevlinEmployee Directorappointed 1 November 2012; Third TermMrDevlinbeganhiscareerinthePostOfficein1976whenhejoinedtheDepartmentofPostsandTelegraphsasaJuniorPostmanworkingasamessengerintheMinister’sOffice.HeiscurrentlyemployedasaDeliveryServiceManagerinMalahideDeliveryServiceUnit,Co.Dublin.AnactivememberoftheCommunicationsWorkers’Union,heservedontheNationalExecutivefortwoyearsandwasChairmanoftheSDSDublinMotorDrivers’Branchfrom1996to2004.
6. Paul Henry a.C.a., M. accounting, B.a. (Bus & Econ)Director - 1appointed 15 September 2011MrHenry,aCharteredAccountant,hasworkedasaSeniorInternalAuditManagerandSeniorFinancialAnalystwithDublinAirportAuthorityPLCsince2008.PriortothatheworkedwithPriceWaterhouseCoopers,DublinwithwhomhetrainedasaCharteredAccountant.
7. William MooneyEmployee Directorappointed 1 November 2012MrMooneyjoinedthePostOfficein1982asaJuniorPostman.HeiscurrentlyemployedasaPostOfficeClerkintheGPO.HeisamemberoftheNationalExecutiveoftheCommunicationsWorkers’UnionandhealsoholdsthepositionofSecretaryoftheDublinPostalClerksBranchCommittee.
8. Martina O’ConnellEmployee Directorappointed 1 November 2012MartinaO’ConnelljoinedAnPostin1993asanAuxiliaryPostPersonandisnowworkingasaPostalOperativeinCork’sSouthCityDeliveryOffice.AnactivememberoftheCommunicationsWorkers’UnionsinceshejoinedtheCompany,MartinahasbeenamemberoftheNationalExecutiveCouncilsince2002andservesonanumberofsubcommittees.
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5AN POST ANNUAL REPORT 2012
9. Peter Ormond B.a. (Bus. Mgt.)Directorappointed 8 March 2011MrOrmondistheMarketingManagerwithMidIrelandTourismsinceMarch2010priortowhichhewastheCommunityServicesProgrammeManagerforKilcormacDevelopmentAssociation.Hisotherworkexperiencesareinauctioneering,insalesandmarketing,andinlogistics.HeisamemberofOffalyCountyCouncilandwasitsChairmanin2005/2006.HeisalsoamemberoftheEducationFinanceBoard.
10. John Quinlivan B.SC. (Mgt. & Law), M.SC. (SPL. PLg.), Dip. In Public admin.Director - 3appointed 24 June 2008; Second TermMrQuinlivanhashadalengthycareerinlocalgovernment,servinginseniorpositionsinninecounties,including15yearsasLouthCountyManager.HeservedforfiveyearsasamemberoftheNationalRoadsAuthorityandhealsoservedasamemberoftheLocalGovernmentManagementServicesBoard,theLocalGovernmentComputerServicesBoardandAnComhairle.
11. William Scally M.a. Barrister-at-LawDirectorappointed 11 December 2012MrScallyhashadalengthycareerinEconomicsandPublicPolicy.Upuntil2011heworkedonacooperativebasisasanindependentpublicpolicyandpublicaffairsconsultantintheCIPAframeworkwithawidevarietyofIrishbusinessesandrepresentativebodies.HewasleadauthorofFixingFinance,the2010InstituteofInternationalandEuropeanAffairspublication.MrScallyhaslecturedwidelyontheIrishGovernmentandpoliticalprocess.HeworkedinIrishSugarformanyyearsandasapublicpolicyandeconomicadvisortoseveralIrishGovernments.HealsoservedontheboardofForfás.
12. Lorraine Tormey Postmaster Directorappointed 1 January 2013MsTormeyhasworkedinthefamilypostofficebusinessinRathowen,CoWestmeathallherlifeandshewasappointedPostmistresstherein2001.SheisalsoPostmistressofAustinFriarStreetPostOfficeinMullingar.MsTormeyisSecretaryoftheWestmeathBranchoftheIrishPostmasters’Union(IPU);DirectorandCompanySecretaryofRathowenCommunityDevelopmentandsheisinvolvedinabroadvarietyoflocalbusinessandcommunitydevelopmentinitiatives.
13. James Wrynn BSC.BCOMM., MBa.Director - 1appointed 15 September 2011MrWrynnisaformerSeniorLecturerinStrategicManagementinDITandHeadoftheDepartmentofAdministrativeStudiesinDIT’sFacultyofBusiness.HeservedontheBoardofESBformorethantenyearsandduringhistermofofficeservedasDeputyChairpersonfrom1995–2000.HealsochairedESBBoardCommitteesonInternationalInvestmentandStrategicResponsetoDeregulation.
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Secretary JackDempsey
Registered Office GeneralPostOfficeO’ConnellStreetDublin1
auditorKPMG,CharteredAccountants
Bankers BankofIreland
Solicitors MathesonOrmsbyPrentice
Registered Number98788
Key To Board Committees 1.AuditAndRisk2.Personnel3.Remuneration
6 ANPOSTANNUALREPORT2012
CHaIRMan (DesIgnate)’s stateMent
The contribution of a high quality postal service to a modern economy is essential and accepted throughout the world. Declining traditional mail volume has caused many countries to examine the fi nancial model behind the provision of the Universal Service Obligation. I am aware that an Post has continued to keep abreast of developments, whilst taking action to address the impact of this ongoing decline. In so doing, the group has changed its revenue mix with non-core mail activities increasing steadily year-on-year.
ItisrecognisedthatAnPosthasimproveditscustomerserviceinrecentyears.TheCompanycontinuestoenjoyaverygoodreputationforthequalityofitsinternationalmailservice.
7AN POST ANNUAL REPORT 2012
AnPosthasmanyuniqueassets;ithasanunrivalledretailnetwork,amailcollectionanddeliverynetworkwithacountrywidereach,adiversesetofproductsandservices,astrongandtrustedbrandandacommittedandexperiencedworkforce.Despitetheevolutionofthedigitalbusinessenvironment,theseassetsremainrelevanttobothbusinessandpersonalcustomersalike.OneofthekeychallengesfacingtheCompanyistoensurethattheseareappliedinamannerwhichwillensureasustainablefuturefortheorganisation.
Iunderstandthatsignificantchangehastakenplaceoverthelastnumberofyearsandthatnecessarychangeprogrammesareongoing.Myownexperienceindicatesthatsuchchangewillcontinueasthebusinessalignsitselfwithdemandandvolumeinordertoremaincompetitiveandmeetchangingcustomerdemands.Improvedflexibility,efficiency,costeffectivenessandinnovationwillbekeyelementsintheCompany’sdrivetoprovidesuperiorcustomerserviceacrossallaspectsofthebusiness.
AnPosthasplayedapivotalroleintheIrisheconomyandsocietyformanyyears.ItisagreatprivilegeandresponsibilityformetojointheCompanyasChairman.
IlookforwardtoworkingwiththeBoard,ManagementandstaffofAnPosttopositiontheCompanyastheycontinuetodealwithdifficulteconomicandmarketchallengeswhilstexploitingnewcommercialopportunitiesforthecorebusinessandsubsidiarycompanies.
TheCompanywishestothankthosewhoretiredfromtheBoardduringtheyearnamely,JerryCondon,AnneConnolly,PaddyCostello,GerryO’TooleandAlanSloane.ThanksarealsoduetoJohnFitzgerald(formerChairman)andCatherineWoods,bothofwhomretiredinFebruary2013.Theircontributionsduringtheirtermsofofficeareverymuchappreciated.
Christoph Mueller, Chairman (Designate)
DoinG more
The group has changed its revenue mix with non-core mail activities increasing steadily year-on-year.
9AN POST ANNUAL REPORT 2012
1. Donal Connell, C.ENg., f.I.E.I., B.E.Chief ExecutiveMrConnellwasappointedasChiefExecutiveon14August2006.HebeganhiscareerintheDepartmentofPostsandTelegraphsandhasheldseniormanagementpositionsinUnitrodeCorporation,3ComCorporationandMaxtorIrelandwherehewasGeneralManagerpriortojoiningAnPost.Heisanon-executiveDirectorofXilinxCorporation’sEuropeanBoardandheisChairmanofAnPostNationalLotteryCompany.
2. John Daly, a.C.M.a., M.SC.(MgMT.)Retail Operations DirectorMrDalyjoinedAnPostinDecember1988havingworkedpreviouslyasaManagementAccountantinFÁS.DuringtheearlypartofhiscareerwithAnPost,heworkedintheFinanceDirectorateasaManagementAccountant.HethenheldvariousseniorfinanceandmanagementpositionswithintheRetaildivisionbeforebeingappointedtohiscurrentpositioninOctober2006.HeisChairmanofThePrizeBondCompanyLimited.
3. Jack Dempsey, B.COMM., M.B.a., M.P.a.Company SecretaryMrDempseyjoinedthePostOfficein1968asanExecutiveOfficerintheDepartmentofPostsandTelegraphs.Duringhiscareer,hehasgainedwideexperienceinallaspectsofpostaloperationsandcommercialactivities,bothnationalandinternational,occupyingavarietyofseniormanagementpositionsacrosstheCompany.HewasappointedasCompanySecretaryinMarch2011.
4. Peter gallagher, B.SC., M.B.a., M.INST.DDirector of Strategy and Business ExcellenceMrGallagherjoinedAnPostinApril2007asHeadofStrategyandBusinessExcellence.PriortojoiningAnPost,hehadbeenaPartnerinPAConsultingGroup’sGlobalBusinessTransformationPracticewhereheledmajortransformationalandbusinessoperationalimprovementprogrammesforprivate&publicsectorclients.PreviousrolesincludeDirectorofStrategywithKPMGConsultingandBusinessOperationsManager(UK&Ireland)forDellComputerCorporation.
5. Pat Knight, M.SC.(MgMT.), f.C.I.P.D.Human Resources DirectorMrKnightjoinedAnPostinMarch2004asHumanResourcesDirector.Previously,hehadbeenGeneralManagerHumanResourcesatWaterfordCrystal,whichhejoinedin1986andwhereheheldseniorHRroles,bothinIrelandandtheUK.PreviousexperienceincludesworkasaPersonnelOfficerwithBordnaMónaplc.HeisaTrusteeoftheAnPostSuperannuationSchemesandadirectorofAirBusinessLimited.
6. Brian McCormick, B.E.(MECH.), M.B.a.Services DirectorMrMcCormickjoinedAnPostinMay2002asStrategyDirectorandwasappointedtohiscurrentpositionofServicesDirectorinOctober2003.PriorexperienceincludesCRHplcandMerrionCorporateFinancewherehewasaDirector.HeisaTrusteeoftheAnPostSuperannuationSchemesandChairmanofOneDirect(Ireland)LimitedandAirBusinessLimited.
7. Liam O’SullivanMails Operations DirectorMrO’SullivanjoinedAnPostin1985.Duringhiscareer,hehasgainedbroadexperienceacrossthefullrangeoftheCompany’sbusiness.HehasheldvariousseniormanagerialandprojectmanagementpositionsintheCompany.HewasappointedasMailProcessingDirectorinJuly2004andalsoservedaperiodasDirectorofCollection&DeliveryChangeProgrammesandOperations.HetookuphiscurrentpositioninApril2009.HeisaDirectorofGeoDirectoryLimited.
8. Peter Quinn, B.COMM., f.C.a., M.B.a.Chief financial OfficerMrQuinnjoinedAnPostinAugust2004.PriortothisheheldseniorfinancialandstrategicpositionsinPJCarrollandCompanyplcandMonaghanMushroomsLimited.HeisaCharteredAccountantandtrainedinpracticewithKPMG.HeisadirectorofAnPostNationalLotteryCompany.
9. Liam SheehanSales and Marketing DirectorMrSheehanjoinedAnPostin2000asGeneralManagerSales&MarketingandhewasappointedasSales&MarketingDirectorinOctober2006.HehasextensiveexperienceintheIrishfastmovingconsumergoodssectorandinbrandcreation,channelmanagementandsalesstrategy.HepreviouslyheldseniorSales&MarketingpositionsinProcter&GambleandinGuinnessandhewasCommercialDirectorwithErinFoods.HeisadirectorofThePrizeBondCompanyLimited.HeisalsoChairmanofTheGiftVoucherShopLimited.
10. Barney Whelan, B.SC., M.B.a., f.P.R.I.I.Director of Communications and Corporate affairsMrWhelanjoinedAnPostinJanuary2005.Havingspentmanyyearsintheaquacultureindustry,hewasresponsibleforpublicrelationsandbrandcommunicationsattheESB.HesubsequentlyheldthepositionofDirector,SalesandMarketingatTheFoodSafetyPromotionBoard.HewasappointedtohiscurrentpositioninOctober2006.
10 AN POST ANNUAL REPORT 2012
During 2012 the Company maintained its strategic focus, continuing to adapt internal structures, products, service offerings, work practices and workflows to the evolving business environment.
Ourstrategicinvestmentprogrammehaspositionedustocompeteatthehighestlevel,enablingustomeettheever-changingneedsofourcustomersnowandintothefuture.Equally,wecontinuetofocusonareaswhichcangeneratenewandenhancedrevenue.AnPostisnowamongtheworld’sbestpostalserviceprovidersintermsofservicequalityandweremaindedicatedtosustainingthispositiononanongoingbasis.
CHIeF eXeCUtIVe’s ReVIeW
11AN POST ANNUAL REPORT 2012
WearemidwaythroughourambitiousChangeProgrammesandhavebuiltontheachievementsofpreviousyearsincluding:
• Areductioninannualisedoperatingcostsof€100m
• AcoreCompanyworkforcereductionof1,284fulltimeequivalents(FTE),whileincreasingmailsservicequalitytorecordlevels
• SubstantialgrowthintheturnoverofsubsidiarycompanieswhichincreasedtheircontributiontotheGroup
• Continuedstrongretailperformance
ThisapproachwillcontinueasAnPost,incommonwithotherglobalpostaloperators,dealswithdecliningmailvolumes,increasedelectronicsubstitutionandsignificantchangesinthebusinessenvironment.
financial performanceAGroupoperatinglossof€17.5mwasrecordedfortheyear(2012),againstaprioryearprofitof€2.2m.ThisisthefirsttradinglossincurredbytheGroupsince2003andisnotsustainableinthemediumterm.Thesinglelargestcontributingfactorhasbeentheunprecedenteddeclineintraditionalmaillargelydrivenbytheeconomiccrisis.TheCompanyhasexperiencedareductionof27%involumessincethepeakof2007.Thescaleofthedeclineissimilartothatseeninothercountries.
Mailsrevenuein2012amountedto€501m,1.1%lowerthan2011.TheCompanybenefittedfrompriceincreasesof€6.5mforUSOservicesweighingmorethan50gramsandcertainnon-USOproducts;a9%increaseinthevolumeofparcelsandpacketsandimprovedpricingoninternationalmailpaidthroughTerminalDues.Thevolumeoftraditionalmailfellby5.2%duringthecourseoftheyear;however,therateofdeclinewaslowerinthesecondhalfoftheyear.TheCompanyisbudgetingforafurther5%declineduring2013,whichwefeelisreasonablegivenrecenttrendsandtheongoingeconomicenvironment.
TheRetaildivisionperformedwellwithrevenueat€169mcomparedwith€171.6mthepreviousyear.ProductssuchasSterlingandDollarsalescontributed€4.4m,up13%on2011,compensatingforreducedincomefromtheNTMAcontract,whichcoverstheprovisionofStateSavingsproducts.
TheCompany’ssubsidiariesincreasedtheirrevenueto€111mfrom€80min2011reflectingsolidgrowthintheirrespectiveproductportfolios.EachisinastrongpositionwithintheirparticularmarketandtheybenefitfromtheirassociationwithAnPost.AsAvivaclosedtheirbranchnetwork,theadditionoftheirlocalbranchbusinesstoOneDirect,aswellasthecontinuedgrowthofTheGiftVoucherShoparepositiveindicatorsfortheyearahead.
Mails Quality of ServiceTheCompanyconsistentlyimprovedtheperformanceofnext-daydeliveryofsinglepiecedomesticmailwithsignificantimprovementoverthepreviousyear.Theseresultswereachievedagainstabackgroundoftheongoingre-engineeringofcollectionanddeliveryoperationsnationwideaswellasthemajorautomationengineeringprogrammeattheCompany’sMailsCentres.
QualityresultsforInternationalMailagainshowedastrongperformancewith97%ofmaildeliveredinIrelandwithinthreedaysofpostinginEuropeagainsttheEUPostalDirectiveTargetof85%andaEuropeanaverageof95.4%,and96.5%ofmaildeliveredinEuropewithinthreedaysofpostinginIreland.ThiscontinuestoplaceAnPostasoneoftheleadingperformersinEurope.
CHanGinG
Meeting the ever-changing needs of our customers
2012 Revenue€501M MaILs €169M RetaIL oPeRatIons €111M sUBsIDIaRIes
12 AN POST ANNUAL REPORT 2012
Strategic approachOurstrategicapproachtothechangingbusinessenvironmentoverthelastfewyearshasincludedspecificfocuson:• Costreductioninpayandnon-pay• Mailspriceadjustment
• Diversifiedandincreasedrevenue• Retail
Thedeliveryofeachofthesepillarsisrequiredforourbusinessmodeltosucceed.
Duringtheperiodofthecurrentfiveyearplanwewillseeacontinueddeclineintraditionalmailvolumesandrevenue.Thecurrentphaseoflossesisregrettablebutwillbeaddressedwithinthecurrentfiveyearplanwhilemitigatingmeasures,includingnecessaryactiononmailspricing,takeeffect.TheCompanyhasalreadyachievedapermanent€100mreductioninannualisedpayandnon-paycostsandwillbuildonitstrackrecordofprogressinthisareaintheyearstocome.
Change ProgrammeIntheperiodsince2008,thestafffulltimeequivalent(FTE)numbersinthecoreCompanydeclinedby1,284andtheannualisedlabourcosthasbeenreducedby€53.4m.TheaveragestaffFTElevelin2012was396lowerthan2011.TheCompanywillcontinuetoimplementitsplannedstaffFTEreductionprogrammethisyearandintheyearstocome.Thecurrentplanrequiresastaffreductionof2,600FTEsduringtheperiod2009–2016.Thisequatestoanaverageannualreductionof325FTEs.Wearecurrentlyhalfwaythroughthisprogrammeandanaveragestaffreductionof321FTEsperannumhasbeenachieved.
Theprogrammehasresultedinextensivenon-paysavingsof€35.5min2012(i.e.22.5%lower)whencomparedto2008.Whilstweexperiencedinflationinsomecostheadingssuchasfuelandelectricityduringtheyear,thiswasoffsetbysavingsinprofessionalservicesandotherareas.
CapitalinvestmentinfurtherautomationwithintheMailsbusinesscontinuedduring2012withtheinstallationofnewprocessingequipmentatourPortlaoiseandDublinMailsProcessingCentres,aswellastheupgradeofequipmentatCorkandAthloneMailsProcessingCentres.Thisprojectisalreadydeliveringsignificantimprovementsinreadratesallowingmail,ofvariouscategories,tobesortedtothelevelofthepost-person’sdeliveryroute,therebycontributingtocostsavings,efficienciesandstaffFTEreductions.
TheapplicationofdiversetechnologysolutionscontinuestounderpintheCompany’sChangeprogrammeandbusinessstrategy.During2012,astateoftheartSAN(StorageAreaNetwork)wasdeployedtomeetincreasingdatastoragerequirements.Some4,500PostalOperativeswereequippedwithmobilescanningdevicesallowingthecaptureofcustomersignaturesatpointofdeliveryandenablingreal-timeuploadofvitalinformationtotheTrackandTracesystem.
WithintheRetailnetwork,investmentwasfocusedonnewproductinnovation,systemsimprovementandtheupgradingofpremises.AnPostwillcontinuetomaximisetheuseoftechnologyasanintegralpartofitsapproachtonewbusinesschallengesinaneverchanginganduncertainenvironment.
PensionsTheAnPostpensionschemedeficitimprovedto€285mat31December2012,downfrom€484m,mainlyduetoimprovedinvestmentperformance.ActivenegotiationsareinprogresswithourUnionsinordertomeettheMinimumFundingStandard.
Regulation and PriceTherewasnopriceadjustmentforpostalserviceswithinthescopeoftheuniversalpostalservicerelatingtopostalpacketsweighinglessthan50gramsduringtheperiodfromMarch2007toDecember2012.ApriceapplicationseekingreasonablepriceincreaseswassubmittedtoComReginFebruary2012.
On1March2013,ComRegapprovedanincreaseof5cinthestandarddomesticletterratefrom55cto60c.Withthisincrease,AnPostpricingcontinuestocompareveryfavourablywithpostalserviceprovidersintheEU,includingtheUK,France,GermanyandBelgium.
CHIEF EXECUTIVE’S REVIEW Continued
CompetinG
Reducing operational costs and investing in infrastructure
€53.4M ReDUCtIon In LaBoUR Cost sInCe 2008 4,500 PostaL oPeRatIVes eQUIPPeD WItH MoBILe sCannIng DeVICes
13AN POST ANNUAL REPORT 2012
GiventheunprecedentedandpermanentdeclineinMailsvolumesandrevenueto-date,largelydrivenbytheeconomicdownturn,Mailspricesarenotcurrentlyatasustainablelevel.ThereforeregularpriceadjustmentsalongwithmajorcostreductionandrevenueenhancementarenecessaryandformakeypartoftheCompany’sbusinessplan.
TheCommunicationsRegulation(PostalServices)Act,2011providesfortheintroductionofaPriceCapMechanismforserviceswithinthescopeoftheUniversalServicewhereComRegisoftheopinionthatthereisnoeffectivecompetitioninthemarketforthesupplyofthepostalserviceconcerned.
ThePriceCapMechanismmeansanoveralllimitontheannualpercentagechangeinpricesbasedontheannualpercentagechangeintheConsumerPriceIndex(CPI)andincludesanadjustmenttoincentivisetheefficientprovisionoftherelevantservices.TheintroductionofanappropriatePriceCapMechanismisessentialtotheachievementoftheCompany’sobjectiveofsecuringregularandnecessarypriceadjustmentsintheyearstocome.
TherewereanumberofdevelopmentsinrelationtotheregulationofQualityofServiceduring2012.InFebruary,ComRegservedlegalproceedingsonAnPostunderthetermsoftheEuropeanCommunities(PostalServices)Regulations2002,seekinganorderfromtheHighCourtthatAnPostcomplywiththe94%nextdaydeliverytargetforsinglepiecemail.Italsosoughttoimposeafinancialpenaltyforallegednon-compliancewiththeQualityofServicestandard.
AnPostisvigorouslycontestingthisactionthroughtheHighCourtasalsoreportedinlastyear’sAnnualReport.Ourinternalmetricscontinuetoshowasignificantlyhigherlevelofperformance.AnPostbelievesthatthewayforwardisanewsingledomesticmonitorofperformance,agreedwithComReg,independentlyoperatedandaudited,whichwouldalsoprovidetheCompanywithtimelydiagnosticinformation.
Inlate2011,ComRegissuedAnPostwithadirectiontoprovidenext-daydeliveryofmailinrespecttotwoaddresses,bothofwhichwereforthesamepropertyandneitherofwhichwasavalidpostaladdress.AnPostsuccessfullybroughtJudicialReviewproceedingsofComReg’sDirectionand,inOctober2012,theHighCourt,agreeingwithAnPost,madeanorderquashingComReg’sDirectionandgrantedthereliefssoughtbyAnPost.ComRegsubsequentlyindicatedthatitintendstoappealtheHighCourtDecisiontotheSupremeCourt.
Amajorprogrammehasbeensuccessfullyimplementedduringthelastnumberofyearstoimproveservicequality.ThisisreflectedbythehighlevelofperformanceshownbytheindependentQualityofServicemonitoringofourinternationalmailstreams.TheCompanywillcontinuetofocusonachievingresultswhichplaceitamongtheworld’sbestperformers.
New revenueThegenerationofadditionalincomestreamsisalsoafundamentalpartofthestrategyoftheGroup.Thiswillcontinuetobeachievedbytheadditionofnewproductsandservicesinthemailsandretailbusinessesaswellasthesubsidiarycompanies,allofwhicharecloselyalignedwithAnPost’scoreactivity.TheCompanyhasallocatedcashinitsforecasttofacilitatetheappropriateinvestmenttoenablethesecompaniestoachievetheirplansandtakeadvantageofopportunitieswhichwillariseintheirsectors.AmbitiousstretchtargetshavebeensetandourperformancetodateisevidenceoftheabilityoftheGrouptosucceedinthiscontext.
TheCompanyisalsoproudofitsachievementsonbehalfoftheGovernmentinmanagingtheStateSavingsportfolio,theNationalLotteryCompanyandinservicingthecustomersoftheDepartmentofSocialProtection.TheseactivitiesservetoillustrateAnPost’ssuccessfultrackrecordacrossdiversesectors.TheincreaseinStateSavingsthroughthepostofficefromabookof€6billionin2007toalmost€17billiontodayhasbeenverysignificant.Inasimilarmannerthe€225mraisedin2012throughtheNationalLotteryforgoodcausesisalsoanimportantachievement.ItisworthnotingthattheNationalLotterycontinuestorankamongthebestperforminglotteriesintheworldasmeasuredbyLaFleur’sandAnPostlooksforwardtoparticipatingintheforthcomingNationalLotteryLicencebidprocess.
ContributinG
Partnering Government and commercial organisations
25.2 MillionBILLPay tRansaCtIons on BeHaLF oF 216 CoMMeRCIaL entItIes
€9,445 MillionVaLUe oF state BeneFIts PaID By an Post on BeHaLF oF tHe DePaRtMent oF soCIaL PRoteCtIon
14 AN POST ANNUAL REPORT 2012
Servicing government businessThe1983ActsetsoneoftheobjectsofAnPostas“ToprovidecounterservicesfortheCompany’sownandGovernmentbusinessandprovidedtheyarecompatiblewiththeseservicesandwiththeprincipalobjectssetout…forothersastheCompanyseesfit.”AnPostisactivelyparticipatinginthecurrentDepartmentofSocialProtection“Provisionofcashservices”tender.TheCompanyisconfidentthatitwillsubmitthestrongestofferandlooksforwardtoapositiveoutcomeforallconcerned.
AnPostiswellpositionedtoprovidemoreGovernmentservicesthroughitsnetwork.Werunthelargestfinancialservicesnetworkinthecountry,comprisingmorethan1,150outletsmainlyoperatedbyindependentretailersemployingover3,000peopleintheirlocalcommunities.Thisnetworkofferstheopportunitytoaccessthe1.7mcustomersusingthepostofficeonaweeklybasis.Itprovidesarangeoffinancialservicesandiscentraltotheday-to-dayfinancialplanningofmanyofourcitizens.Thepostofficeremainsoneofthemosttrustedinstitutionsinthecountry.
Assomebanksseektorationalisetheirbranchnetworkstheyhaverecognisedthatmanyoftheirretailtransactionscouldbedonemoreefficientlyandcosteffectivelywithinthepostofficenetwork.Thisarrangementallowsaccesstoavariablecostmodelfortransactionsandofferstheircustomersbankingservicesinourcommunitybasedretailnetwork,sixdaysaweek.Thenumberoftransactionscontinuestogrowonanannualbasisprovingthatthereisahighlevelofcustomerengagementwiththeseservices.In2012approximatelythreemilliontransactionswereprocessedinthiswayasweextendedourserviceprovisionforAIBinparticular,andalsoforDanskeBank.Inrecentyearstherehasbeenanincreaseinthenumberofservicesavailablethroughthelocalpostoffice.TheadventofOne4allGiftCards,postfone,andSterlingandDollarsaleshasbeenwelcomedbyourclientsandcustomersalike.TheseservicescontinuetoexperiencesolidgrowthdespiteIreland’songoingdifficultretailenvironment.
AsmanyGovernmentDepartmentscontinuetoencourageonlineretailtransactionstheyarealsofacedwithmuchhighercostsfortheremainingofflinetransactions.Asimilaropportunityisavailabletothesebodiestoutiliseourlocally-basednetwork,toimproveaccesstoGovernmentservicesanddeliversignificantcostsavingsbyavailingofthevariablecostmodelfortransactionsasdescribedabove.OnecaseinpointisthedevelopmentinmeetingtheGovernment’sintentiontoachievefinancialinclusionthroughtheprovisionofaBasicBankAccount.TheCompanyisconfidentthatitcanplayapivotalroleinGovernmentachievingthisbyutilisingthepostofficenetwork.
ThepostofficenetworkhasdeliveredanexcellentservicetotheDepartmentofSocialProtectionandtheirclientsfordecades.Inmanyruralandurbanareas,thepostofficeistheonlyoutletofferingarangeofaffordableandeasilyaccessiblefinancialservices.Theresultsofarecentpilotprojectsuggestthatfinancialinclusioninitiativeswillnotsucceedunlessdeliveredthroughtheretailnetworkofchoice–thepostoffice.
Itisworthnotingthatthroughoutthisperiodofadjustment,rationalisationandinvestment,theCompany’sreputationanditsstandingamongthepublic,asmeasuredbyMillwardBrown,hasimprovedsteadily.Allreputationparametershaveimprovedinastatisticallysignificantmanneryear-on-year.
Ireland’songoingeconomicsituationpresentsanextremelydifficultbusinessenvironment.AnPostwilladdresstheconsequentchallengeswithdeterminationduringthiscomingyearandthereafter.TheCompanywillcontinuetoadaptitsstructuresandresourcestofacethechangingbusinessreality.Thedevelopmentofinnovativeproductsandservicesisacentralpartofthebusinessstrategyasisthecontinuedprovisionofahighquality,value-for-money,relevantandcustomer-focussedservice.
Finally,IwishtothanktheMinisterforCommunications,EnergyandNaturalResources,PatRabbitteT.D.,andhisofficialsfortheirassistanceandsupportduring2012.
Donal Connell, Chief Executive27March2013
CHIEF EXECUTIVE’S REVIEW Continued
DoinG more
Running the largest financial services network in the country1,150outlets 1.7 Million CUstoMeRs WeekLy 6oPen 6 Days a Week
15AN POST ANNUAL REPORT 2012
Successisbeingachievedbyanumberofbusinesseswhichcantakeadvantageoftheexpertiseandpresenceofthecorecompany.Thefollowingaretheprimarysuccessesinthesubsidiaryarena:
National Lottery CompanyAnPostisveryproudoftheachievementsofthisbusinessoverthe26yearsofitsexistence.ThemanagementandstaffhavedevelopedahighlysuccessfulCompanyandthefundsraisedhaveconsiderablyassistedbeneficiariesacrossthecountry.€225mwasdistributedtogoodcausesin2012.
TheGovernmentwillissueatenderfortheawardingofthenextLotteryLicenceinthecomingmonths.AnPostlooksforwardtoparticipatingintheforthcomingNationalLotteryLicencebidprocess.
Air BusinessThisMailssectorbusiness,basedintheUKhasseenconsiderablegrowthinthepasttwoyears.Turnoverin2012exceeded€75m.Thisbusinessconcentratesonfulfilment,subscriptionmanagementanddistribution,throughinternationalmailchannels,primarilyforlargeinternationalpublishingclients.CurrentcustomersincludesuchprestigioustitlesasTheEconomist,Informa’sLloydsList,theBritishMedicalJournal,CountryLife,Vogue,TheLancet,NewScientistandvariousotheracademicandeducationalpublications
The Gift Voucher ShopTheOne4allgiftcardisthegiftvoucherofchoiceinIreland.Innovationandproductdevelopmenthavekeptthistotheforefront.Inaddition,expansionintotheUKhasaddedtothesizeofthisbusiness.ThissubsidiarycontributedpositivelytotheoperatingresultattheGroupandisaverysignificantpartoftheCompany’sretailoperations.
One DirectOneDirecttookoverthepersonallines(motorandhome)insurancebusinessformerlyconductedbyAvivathroughitsownbranchnetwork.Thisrepresentsasignificantincreaseinbusiness.ItfacilitatesconsolidationofthedistributionchanneloperatedbyOneDirectfromitscallcentreinAthlonewiththephysicalpostofficenetwork.Thisaddedbusinesstogetherwithastrongperformanceinalllinesofinsurance,motor,homeandlifegivesadditionalstrengthtothebrandinthemarket.
PostpointThispaymentschannel,inadditiontothepostofficenetwork,offersourcustomersandproductsuppliersalikeaveryvaluableservice.Thereissomedeclineinthetraditionalmobiletop-upmarketandmarginshavebeenreducedforallpaymentcompaniesinthissector.Thischannelsawtransactionsamountingto€250minvalueduring2012.New,innovativeproductdevelopmentsandchangesintechnologyaremaintainingrelevanceandtheGroupiscommittedtodevelopmentinthissector.
SUbSIdIaRIES
16 AN POST ANNUAL REPORT 2012
group turnover for 2012 was €807.3m, marginally ahead of the previous year’s €806.7m.
TheGroupoperatinglossof€17.5mwasimpactedbyfurtherdeclineincoremailsvolumes,delaysinsecuringapprovalfromtheCommissionforCommunicationsRegulation(ComReg)fornecessarypriceadjustmentsandsomedelaysinimplementationofourcostreductionprogrammes.PostalOperatorsdealingwiththeparticularchallengesofthepostalmarketmustbeabletopriceproductsandservicesaccordingtomarketforces,andinthisregardAnPostlooksforwardtothesuccessfulintroductionofthenewComRegpricecapmechanismin2014.Theseresultsalsoreflectamostchallengingdomesticeconomy.
2012 €m
2011 €m
Turnover 807.3 806.7
Groupoperating(loss)/profit (17.5) 2.2
Netassets(excludingpensionliability) 297.3 319.0
Thefinancialyear2012endedwithaGroupOperatingLossof€17.5mcomparedtoaGroupOperatingProfitof€2.2mthepreviousyear.However,comparisonofthetwoyearsisskewedbytheexceptional€28mrevenuegeneratedbytheGeneralElectionandPresidentialElectionmailingsin2011.
RevenueOverallmailsrevenuein2012totalled€501m,1.1%lowerthan2011.Thevolumeoftraditionalmailreducedby5.2%inthecourseoftheyear,withtherateofdeclineslowingsignificantlyfrom6.8%inthefirsthalfoftheyearto3.6%inthesecondhalf.
Compensatingtosomedegreefortheabovementioneddeclineintraditionalmailvolumewasgrowthinparcelsandpacketvolumes,priceincreasesinsomenon-USOservicesandnewimprovedratespayabletotheCompanybyinternationalpostaladministrationsandmailoperatorsfordeliveringtheirmailinIreland.
Revenueintheretaildivisionheldupwellat€169mcomparedwith€171.6mthepreviousyear.ThevalueofStateSavingsreached€16.3billionbytheendofDecember2012,anincreaseof€2.2billionontheprioryear.Othernewretailincomestreamsshowedencouraginggrowthincludingcommission-freeSterlingandDollarsalesandadditionalagencyservicesforAIB,DanskeBankandotherfinancialservicesandutilityproviders.
SubsidiariesRevenuefromAnPostsubsidiarybusinessesincreasedto€111mfrom€80m,generatingaprofitbeforetaxandgoodwillof€8.5m.Thisreflectssolidgrowthintheprimarysubsidiarieswhichcontinuetoperformstronglyintheirrespectivemarketsandwhichbenefitgreatlyfromtheirassociationwiththepostofficenetwork.ThetakeoverbyOneDirectofAviva’slocalmotorandhomeinsurancebranchbusiness,astheyclosedtheirbranchnetworkintheAutumn,andthecontinuedgrowthofTheGiftVoucherShop(One4All)arepositiveindicatorsfortheyearahead.Profitmarginsremainstrongacrossthebusinesses.
FInanCIaL ReVIeW
17AN POST ANNUAL REPORT 2012
PricingOngoingpriceadjustmentscoupledwithongoingcostreductionandnewrevenuesareanessentialpartoftheCompany’sbusinessplan.TheCommunicationsRegulation(PostalServices)Act,2011providesfortheintroductionofaPriceCapMechanismforserviceswithinthescopeoftheUniversalServicewhereComRegisoftheopinionthatthereisnoeffectivecompetitioninthemarketforthesupplyofthepostalserviceconcerned.ThePriceCapMechanismmeansanoveralllimitontheannualpercentagechangeinpricesbasedontheannualpercentagechangeintheConsumerPriceIndex(CPI)andincludesanadjustmenttoincentivisetheefficientprovisionoftherelevantservices.TheintroductionofanappropriatePriceCapMechanismisessentialtotheachievementoftheCompany’sobjectiveofsecuringregularandnecessarypriceadjustmentsintheyearstocome.
CostsChangeprogrammeimplementationcontinuedapaceoverthecourseoftheyear.Intheperiodsince2008thecorecompanyhasachievedanFTEreductionof1,284andthecostoflabourhasreducedby€53.4m.Intheyear2012labourhoursequatedto9,641FTE’s.Thiswas396lowerthanin2011andreflectstheimpactofongoingchangeprogrammesonthecostbase.
Corenon-paycostswerereducedby€4min2012.Therehasbeeninflationinsomeareassuchasfuelandelectricitywhichisbeingoffsetbysavingsinthecostofprofessionalservicesandothercostcategories.Additionalcostswereincurredintheservicingofincrementalparcelandpackethandlingwhereweareincreasingourmarketshareofnationalandinternationalbusiness.
CashThecashresourcesoftheGroupat31December,2012were€112m(€150min2011).Duringtheyear€28mwasinvestedincapitalexpenditureand€17minvoluntaryservice/voluntaryearlyretirementschemes.Thecashimpactofthetradinglossof€17.5mismitigatedbythenon-cashdepreciationandamortisationchargesof€25m.
fixed assetsCapitalexpenditurein2012amountedto€28m.Therewerenosignificantassetdisposalsduringtheyear.Furthercapitalspendofthesamemagnitudeisplannedfor2013,includingthecompletionofinvestmentinthelatestgenerationofmailsprocessingequipment.
Pension SchemesTheAnPostbalancesheetat31December2012includesapensiondeficitof€285m(€484min2011).Assumptionsthatareinlinewithindustrynormsareusedinthecalculationofchargesandthebalancesheetdeficit.Theseareprimarilyadiscountrateof4%,longrunpay/pensioninflationof1.5%andinvestmentreturnof7.5%forequities,3%forbondsand4%forotherassetclasses.
PensionSchemessuchasthedefinedbenefitschemeatAnPosthavetoaddresstherequirementsofthePensionsBoardforMinimumFundingStandards.AnPostexpectstobeinapositiontomakethechangesnecessarytotheschemesothatitcanattainthenecessaryminimumfundingstandard,aslaiddownbylegislation.
Outlook2012isthefirstyeartorecordanoperatinglosssince2003.Thisisnotsustainableinthemediumterm.Implementationoftheongoingchangeprogrammes,achievingpricere-alignmentandthegrowthofnewrevenuestreamsincoreandsubsidiarybusinessesarethekeydriversinachievingareturntoprofitability.
18 AN POST ANNUAL REPORT 2012
FINaNCIaL REVIEW CONTINUED
UnIVeRsaL seRVICe
The Communications Regulation (Postal Services) act 2011 (‘the act’) was enacted in august 2011.
Requirements of the USO (Universal Service Obligation)UnderSection17oftheAct,AnPostisdesignatedasaUniversalPostalServiceProviderforaperiodof12years.
UnderSection16oftheAct,UniversalPostalServicemeansthatoneveryworkingday,exceptincircumstancesorgeographicalconditionsdeemedexceptionalbyComReg,thereisatleast:
(i) oneclearance,and
(ii)onedeliverytothehomeorpremisesofeverypersonintheStateor,asComRegconsidersappropriate,undersuchconditionsasitmaydeterminefromtimetotime,toappropriateinstallations.
Universalserviceshallincludethefollowingminimumfacilities:
(a)theclearance,sorting,transportanddistributionofpostalpacketsupto2kgs;
(b)theclearance,sorting,transportanddistributionofpostalparcelstoaweightlimittobespecifiedbyorderofComReg(orintheabsenceofthis20kgs);
(c) thesorting,transportationanddistributionofparcelsfromotherMemberStatesupto20kgsinweight;
(d) servicesforregistereditems;
(e)servicesforinsureditemswithintheStateandtoandfromallcountrieswhich,assignatoriestotheConventionoftheUniversalPostalUnion,declaretheirwillingnesstoadmitsuchitemswhetherreciprocallyorinonedirectiononly;and
(f) postalservices,freeofcharge,toblindandpartiallysightedpersons.
AsrequiredbySection16(9)oftheAct,inJuly2012,ComRegmaderegulationsspecifyingtheservicestobeprovidedbyAnPostrelatingtotheprovisionoftheUniversalPostalService.TheCommunicationsRegulation(UniversalPostalServices)Regulations,S.I.280of2012,whichsetsouttheseservices,isavailableonwww.irishstatutebook.ieorwww.comreg.ie.
access to Universal ServicesAnPostprovidesaccesstoitsservicesthroughitsnetworkof57Companypostoffices,1,095postmaster-operatedpostofficesand166postalagents.Inaddition,some1,188retailpremisesarelicensedtosellpostagestamps,asactivelicensedagents.Tofacilitatephysicalaccesstotheservice,approximately5,000postboxesaredistributedwidelythroughouttheState.Thereare43designatedacceptancepointsforbulkmailservices.
19AN POST ANNUAL REPORT 2012
TariffsThefollowingisasummaryofthepricesforstandardservicesweighingupto50gwhichwereapplicableduring2012.†
Ireland & NI Letters (up to C5)
Large Envelopes
Packets Parcels
StandardPost 55c54cifCeadúnas
ormeter
95c €2.20 €6.50
RegisteredPost* €5.25 €5.25 €5.25 €10.50
* Thefeepayableforthebasicregisteredservicecoverscompensationuptoamaximumof€320.Furthercompensationuptoalimitof€1,500isavailablefor€4anduptoalimitof€2,000for€5basedondeclaredvalueattimeofposting.
International Destinations
Letters (up to C5)
Large Envelopes
Packets Parcels
StandardPost 82c €1.50 €2.70 GB €18.25 RoW €22.00
RegisteredPost**
€5.17 €5.85 €7.05 GB €23.00 RoW €27.00
**Availabilityofservicedependentonpostaladministrationindestinationcountry.Compensationupto€320inGB;€150inEurope;€100forparcelsand€35forlettersoutsideEurope
†Witheffectfrom2April2013,AnPostchangeditstariffsforStandardPostwithintheUniversalService.Thetariffsforitemsweighingupto50gwereincreasedandthesetariffsnowapplytoitemsupto100gresultinginareductionintheprevioustariffforitemsweighingbetween51-100g.ThenewStandardPostratesforIrelandandNorthernIrelandforitemsweighingupto100gare60cforletters,€1.05forlargeenvelopesand€2.40forpackets.Discountsapplyifpaymentismadebymeter.Thetariffsforallotherdestinationsforitemsweighingupto100gare90cforletters,€1.65forlargeenvelopesand€3.00forpackets.InternationalStandardparcelpriceswerealsoincreased.
AfulllistofcurrentUSOtariffsisavailableintheGuidetoPostalRates(seewww.anpost.ie)
Quality of ServiceInternationalThequalityperformancestandardforthedeliveryofintra-Communitycross-bordermailwaslaiddowninthePostalDirectives(97/67/ECasamended)andisincludedinSchedule3oftheAct.Thequalitystandardforpostalitemsofthefasteststandardcategoryisasfollows:
D+3: 85% of items; D+5: 97% of items,whereDreferstothedayofposting.
DomesticTheActrequiresComRegtosetquality-of-servicestandardsfordomesticuniversalservicemailwhichmustbecompatiblewiththoseforintra-Communitycross-borderservices.ComReghavesetaquality-of-servicetargetfordomesticsinglepieceprioritymailasfollows:
D+1: 94% D+3: 99.5%, whereDreferstothedayofposting.
20 AN POST ANNUAL REPORT 2012
UNIVERSaL SERVICE CONTINUED
Quality monitoringMonitoringofperformanceagainsttheinternationaltargetsiscarriedoutbyResearchInternationalonbehalfofInternationalPostCorporation(IPC).MonitoringofthedomesticqualityofserviceiscarriedoutbyIpsosMRBIonbehalfofComReg.Detailsofthemostrecentresultsareavailablefromourwebsitewww.anpost.ie.,withdomesticperformancealsoavailableonwww.askcomreg.ie.
InFebruary2012,ComRegservedlegalproceedingsonAnPostunderthetermsoftheEuropeanCommunities(PostalServices)Regulations2002,seekinganorderfromtheHighCourtthatAnPostcomplywiththe94%nextdaydeliverytargetforsinglepiecedomesticmailandseekingtoimposeafinancialpenaltyonAnPostforallegednoncompliancewiththequalityofservicestandard.AnPostisdefendingthisactionvigorously.
Customer ComplaintsAnPostisrequiredtomaintainrecordsofcustomercomplaintstakingintoaccounttherelevantEuropeanstandardIS:EN14012:2003.Thetableprovides,inrelationtomail,abreakdownofwrittencomplaintsreceivedfromcustomersduring2012.Thetotalcontinuestorepresentaminutefractionoftheentiremailtraffichandledduringtheyear.
Written complaints received from customers:
Itemslostorsubstantiallydelayed 18,287Itemsdamaged 980Itemsarrivinglate 351Mailcollectionordelivery:
Timeofdelivery 347Failuretomakedailydeliverytohomeorpremises 115Collectiontimes/Collectionfailures 2
Misdelivery 486Accesstocustomerserviceinformation -Underpaidmail 145Tariffsforsinglepiecemail/discountschemesandconditions -Changeofaddress(Redirections) 919Behaviourandcompetenceofpostalpersonnel 22Howcomplaintsaretreated -Other(notincludedinabove) 1,789
Total 23,443
Includedinthetotalfigurearecomplaintsaboutregistereditems,whichnumber5,563.
In2012,475,414telephonecallsweremadetoAnPostCustomerServices.Mostofthesewereroutineorgeneralenquiriesratherthancomplaints.
TheAnPostComplaintandDisputeResolutionProceduresaresetoutin‘GettingitSorted,’whichisavailableonourwebsite,inretailoutlets,andfromourCustomerServicesCentre.WealsohaveaCustomerCharter,containingspecificpledgestocustomersregardingourservices.
further InformationAdditionalinformationinrelationtoservicesprovidedbyAnPostisavailablebyphoningAnPostCustomerServicesonCallSave1850575859,[email protected],byvisitingwww.anpost.ie,orbycallingintoalocalpostoffice.
21AN POST ANNUAL REPORT 2012
Sustainability at an Post is firmly based within ongoing business activity, aimed at mitigating our environmental impact, improving quality of life for our customers and enhancing our business offering.
EnvironmentFollowingafouryearimprovementprogramme,targetingourcarbonperformance,AnPosthasachievedsignificantcarbonreductionacrossourbuildingsandfleet.Giventherelativelylargebuildingstockandfleetsize,thesustainabilityprogrammeconstitutesimprovementandinnovationacrossarangeofopportunitiestomakegainsincarbonsavings.
OurmembershipoftheInternationalPostCorporation,EnergyManagementandMonitoringStandard(IPCEMMS),hasprovidedaneffectivereportingtemplatesince2009.
ThissystemofbenchmarkingperformanceamongmemberPostsallowsustodrivechangewithinthebusiness,evaluatingourCompanyacrossarangeofindicators.Ourparticipationandperformanceresultsarefullyauditedandpublishedannuallyasasectorwide,sustainabilityreport.
WithinIPCEMMS,wehaveprogressedtomidrankingintermsofbothourcarbonandenergyuse.Thisinturnplacesuswithinrangeofachievingthenationalpublicsectorenergyconsumptiontargetof33%reductionbeforetheyear2020.InthisregardwebeganannualreportingofourenergyconsumptiontotheDepartmentofCommunications,EnergyandNaturalResourcesin2012.
In2013weaimtoimproveourIPCEMMSrankingandmakeevenbetteruseofenergybydevelopinganenergymanagementsystemspecifictotheCompany’sneeds.
TheCompanybeganpreparatoryworktoimplementISO50001,EnergyManagementSystemduring2012.Weaimtoachieveaccreditationbyquarterthree,2013.Webelievewewillbethefirstpostaloperatortoachievethisstandard,whichprovidesuswithaframeworkto:
• Developpolicyformoreefficientenergyuse
• Fixtargetsandobjectivestomeetpolicy
• UsedatatobetterunderstandandmakedecisionsaboutourCompany’senergyuse
• Measuretheresults
• Reviewpolicyeffectiveness
• Makecontinuousimprovementsintheareaofenergymanagement
ItisenvisagedthatthescopeofISO50001willbeextendedtoincorporateourtransportfunctionin2014.
sUstaInaBILIty
In 2013 we aim to improve our IPC EMMS ranking and make even better use of energy by developing an energy management system specific to the Company’s needs.
22 AN POST ANNUAL REPORT 2012
Energy UseThevastmajorityoftheCompany’senergyusageiscomprisedof:
• Heatingandlightingourfacilities
• Fuelconsumptionwithinourtransportfleet
In2012AnPostconsumed122.15GWhofenergythroughouttheCompany.Thebreakdownofwhichis:
• 22.5GWhofelectricity
• 20.7GWhoffossilfuelsforheating
• 79.15infossilfuelsforTransport.
Throughout2012wehavecontinuedworkingtowardstheCompany’sstrategictargetofa33%reductioninkWhrsand20%reductioninCO2byundertakingtheinitiativesandprogrammesidentifiedbelow.
• Investmentinbettercontrolofourlightingsystems,whichresultedinaconsiderablesavingof350MWhrs
• FurtherupgradestotheBuildingManagementSystemwereimplementedinordertoimprovecontrolofourenergyconsumptionintheGPO.TheBuildingManagementSystem(BMS)projectwasrolledouttoBaldoyleDeliveryServiceUnit(DSU)andChurchtownDSUsaving160MWhrs
• TheCompany’sheatingprojectwasrolledouttotenofficesresultingin200MWhrssavings
• AligningourEnergyManagementSystem(EnMS)withISO50001
• AnenergyinitiativefocusingonheatingwaspilotedinAthloneMailsCentrewithinitialgoalsachieved,energysavingsof400MWharetargetedbyend2013
• Incorporatingenergyefficiencyinitiativesintoallnewbuildingworks
Actions planned for 2013:AnPostiscommittedtoimprovingitsenergyandCO2reductionbyundertakingthefollowinginitiativesfor2013:
• AchievingCertificationtoISO50001.
• Investingfurtherinlightingupgradesthroughoutourpropertyportfolio.
• Therolloutoftheenergyimprovementprojects
• Heatinginitiativestargetedatourtop30energyusers
• TemperaturecontrolmeasuresintroducedtoallourMailsCentres
• Asystemofinternalheatingtimerstobeinstalledinthemajorityofouroffices
• Asystemofheatingcontrolsincorporatingexternal/ambienttemperaturesensorsamonghighenergyusers.
• SupportingourlocalofficestoimplementaCompany-widebenchmarkingsystemforenergyuse,toidentifyenergyimprovementopportunitiesineachofficeandtocontributetoouroverallenergyperformancetargets.
Eco-driving challengeCollectionandDeliverystafffromaroundthecountryparticipatedintheinauguralAnPostEcoDriverChallenge.Theobjectiveoftheeventistoencouragesustainablethinkingamongourdrivers,enhanceemployeeengagementanddemonstratethateco-drivingisgoodforboththeenvironmentandourbusiness.
Throughout 2012 we worked towards our strategic target of a 33% reduction in kWhrs and 20% reduction in CO2 use.
SUSTaINabILITy CONTINUED
23AN POST ANNUAL REPORT 2012
Eco-cleaning productsTheCompanyhascompletedonefullyearofusinganewrangeofenvironmentallyfriendlycleaningandwashroomconsumables,havingimplementedacohesivenationwidepurchasingpolicyforallAnPostproperties.Thebenefitsoftheproductrangeincludevastlyreducedpackaging,transportandwaste.TheproductisalsocertifiedwiththeEUeco-label,theEUflower.
WorkplaceDiversity AnPostisoneofelevenfoundingorganisationstohavesignedthefirstDiversityCharterIreland,markingourvoluntarycommitmenttoeffectivediversitymanagement,promotingequalityandpreventingdiscriminationonallnineequalitygroundswhichincludedisability.
AnPosthaslaunchedanewEqualityandDiversitysiteonourIntranetwhichpresentsanextensiveresourceofinformationrelatingtoEqualityandDiversityissuesandlegislation;Disability;Policydocuments;Gay/Lesbian/Bisexual/Transgendertopics;andWork-Life-BalanceinitiativeswithinAnPost.
TheaimofthissiteistopromoteanddevelopawarenessofEqualityandDiversityissuesandtohighlightrelatedtopicswhichcanimpactonouremployees.
Disability Equality eLearningAnPostcommencedtherolloutoftheNationalDisabilityAuthority’sDisabilityEqualityeLearningcourse,whichwasproducedwiththeparticipationofpublicservicesbodies(includingAnPost).
Basedonthesubjectofgoodcustomerservice,thecoursefocusesonchangingattitudesinordertoeliminatebarrierswhichrestrictaccesstoimportantfacilities,servicesandinformationforthosewithadisability.Thetrainingcoursehelpstodevelopheighteneddisabilityawareness–anawarenesswhichisencompassedinourcorevalues,“RespectandPersonalAccountability”and“RespectedCorporateCitizen”.
ThiscourseassistsAnPostinfulfillingitsobligationsinlinewithassociatedIrishlegislation(i.e.DisabilityAct2005;EqualityStatusAct2000,EqualityAct2004;andtheEmploymentEqualityActs1998to2011).
Community Welaunchedourrevisededucationprogrammein2012withthearrivalofanpostschoolbag.ietoprimaryandsecondaryschoolsnationwide.
anpostschoolbag.ieisanonlineeducationresourcededicatedtoinformingprimaryandsecondarylevelstudentsandteachersaboutthebreadthofAnPost’sinvolvementinIrisheconomic,environmentalandcommunitylife.
anpostschoolbag.ie is an online education resource dedicated to informing primary and secondary level students and teachers about the breadth of an Post’s involvement in Irish economic, environmental and community life.
24 AN POST ANNUAL REPORT 2012
SUSTaINabILITy CONTINUED
Theanpostschoolbag.ieresourceistailoredtoschools’owntechnologicalcapability–whiteboardsandPCs.ContentfocusesonthefullrangeofAnPost’smailsandretailbusinessservices,whiledeliveringclassroomactivitiesdirectlylinkedtothecurriculum.ResourcesaredesignedtocreativelyhighlightAnPost’scommitmenttosustainabilityandcommunity.AllinformationisavailableinbothEnglishandIrish.
An Post CyclingAnPostistheleadingsupporterofIrishCycling,apresencewehavebuiltonoversixyearsofrealcommitmenttothesport.Wearemorethanasponsorofcycling-wehaveearnedtheroleofvaluedpartnerineachoftheeventswesupport.
Wehavepioneeredabusinessledapproachtomaximisingparticipationandaudienceforthesportateverylevel.
Weremainoptimisticthatoursupportwillencourageothercommercialsponsorstogetinvolvedwiththesport.Thiscommercialapproachtooursponsorshiphasbeenimportantforourbusinessandhasworkedwellforcycling.Wenowpositionourachievementsinthecontextoftheeconomicbenefitstothecountry,thereturnoninvestmentweachieveintermsofbrandawarenessandourcontributiontoIrishlifethroughthesportofcycling.
In2012,AnPostsupportedtheAnPostSeanKellyTeam,AnPostRás,AnPostCycleSeries,AnPostRásnamBan,theIrishCyclingShowandtheIrishParacyclingteamontheroadtotheLondon2012Games.
We now position our sponsorships within the context of their economic benefit to the country and return on investments.
25AN POST ANNUAL REPORT 2012
staMP IssUes anD PHILateLIC PUBLICatIons
In 2012, an Post issued a total of 37 special and commemorative stamps covering such diverse topics as Significant Science Milestones – Dublin City of Science and Boyle’s Law, Barnardos Ireland, Olympic games – London 2012, and Europa – “Visit Ireland.”
Includedamongstthehighlightsofthe2012stampprogrammewerethefourpoignantstampsissuedtocommemoratetheCentenaryofthesinkingoftheTitanic;twoeerieillustrationsbyDavidRooneytomarktheCentenaryofthedeathofBramStoker,thecreatorofDracula;andasetofmemorablestampstocelebratethe50thInternationalEucharisticCongress–whichwasheldinIrelandforthefirsttimesince1932.
AseriesoffourstampswasdesignedbyGerGarlandtocelebrateContemporaryArts-Dance.Issuedasdiamondshapedstamps,andcontainedwithinaninnovativediamondshapedbooklet,thesetfeaturedarangeofmoderndancemovementsfrom:FabulousBeastDanceTheatre,DanceTheatreofIreland,IrishModernDanceTheatreandCoisCéimDanceTheatre.
Notedartist,VincentKillowrycreatedtwoatmosphericpaintingsfortheVolvoOceanRacestamps,whileFergusLyonspaintedtheimagesonwhichtheIrishMythsandLegendsstampsetwasbased.DesignedbySteveSimpson,theselegendarystampsdepicttheadventuresofTheChildrenofLir,DeirdreoftheSorrows,FionnMacCumhaillandSetanta.
DesignedbyZincDesignConsultants,the150thAnniversaryoftheDublinFireBrigadeuseddramaticphotographytocapturetheheroicactionsofmembersoftheBrigade,whorisktheirlivesonadailybasisasafrontlinepublicservice.
Inaddition,2012sawtheintroductionofphaseIIIoftheSeventhDefinitiveSeries-IrishAnimalsandMarineLife.PhaseIIIcontinuedtheroll-outofthisbeautifulseriesontherecentlyintroducedformat,StampsOnARoll(SOAR).SOARisnowavailableatallpostofficesandallowsthedenominationofthestamptobeprintedatthetimeofpurchase.
Adiverseportfolioofassociatedcollateralwasalsoproduced,includingPrestigeBooklets,miniaturesheets,aYearPackandFirstDayCoverCollection.Onceagain,theIrishStampsYearBookwasproducedinbothstandardandluxuryeditions.Asever,thisstrictlylimitededitionfeaturedallissuesfromtheannualprogramme,andwasproducedtothehigheststandardsofdesign,withstunningimageryandinformativetext.
InMay2012,anexhibitionofmorethan30originalSusanSexpaintingsfromtheIrishWildFlowerDefinitivestampserieswasheldintheNationalBotanicGardens,Dublin.AnPostassistedwiththeexhibition,temporarilyloaningoriginalartworkandproducingasixpageexhibitionbrochure.