40214 An Post AR06 English

AnPostAnnualReport2006 �

FinancialHighlights

2006€m

2005€m

Turnover 8�8.8 752.9

Operatingprofitbeforeexceptionalitems �4.7 �6.2

Profitforthefinancialyear 75.7 40.7

Operatingprofitbeforeexceptionalitemsas%ofturnover �.8% 2.2%

Analysis of Turnover Analysis of Operating Costsbefore exceptional items

Mails 72.6%

Post offices 17.6%

Other 8.6%

Interest income 1.2%

Staff and postmasters’ costs 69.4%

Distribution 9.1%

Accommodation 3.9%

Operational 9.6%

Administration 4.8%

Depreciation & goodwill amortisation/impairment 3.2%

“AtPerlico,we’reIreland’sleadingalternative

providerofhomephoneandbroadbandservices.

Webringcustomersarealchoiceandsignificantly

lowerprices.Inordertogetourmessageacrosswe

useAnPost’sDirectMailproductssothatpeoplecan

seeforthemselvesjusthowwellPerlicocomparesto

existingsuppliers.DirectMailhasbeenakeydriverin

gettingourbrandmessageandcompetitivepricing

acrosstoourtargetmarket.”

PadraigO’NeillMarketingDevelopmentManager

Getting the message out there!

BoardofDirectorsandCorporateInformation

4 AnPostAnnualReport2006

MargaretMcGinley,B.A.,LL.B.Chairperson – 2,3

Age 47

Appointed 4 February, 2003; second term

Ms.McGinleywasappointedas

ChairpersoninFebruary2003,having

previouslyservedasadirectorofAnPost

forfiveyears.SheisapartnerinMcGinley

&Co.Solicitors,MilfordandLetterkenny,

Co.Donegal.

PatrickComptonEmployee Director

Age 50

Appointed 1 November, 2004; fourth term

Mr.Comptonhasworkedinthepostal

serviceforthepastthirty-fouryearsand

hiscurrentpositionisthatofPartnership

Co-ordinator,basedinRoscommon.He

wasamemberoftheNationalExecutive

oftheCommunicationsWorkersUnionfor

twentytwoyearsanditspresidentin�986.

Heisactiveincommunitydevelopmentin

hislocalareaandheisamemberofArigna

LeaderBoardandRoscommonCounty

DevelopmentBoard.

JerryCondonEmployee Director – 2

Age 53

Appointed 1 November, 2004; third term

Mr.Condoncommencedworkin�97�with

theDepartmentofPostsandTelegraphs

andhasworkedasaPostOfficeClerkfor

hisentirecareer.Hehasbeenanactive

memberoftheCommunicationsWorkers

Unionthroughouthiscareerandheserved

ontheNationalExecutiveofthatunionfor

thirteenyears.

DonalConnell,C.Eng.,F.I.E.I.,B.E.Director – 2

Age 53

Appointed 14 August, 2006

Mr.ConnellwasappointedChief

Executiveon�4August,2006.Hebegan

hiscareerintheDepartmentofPosts

andTelegraphsandhasheldsenior

managementpositionsinUnitrodeIreland,

3ComIrelandandMaxtorIrelandwhere

hewasGeneralManagerpriortojoining

AnPost.Heisanon-executivedirectorof

XilinxCorporation’sEuropeanBoardand

ChairmanoftheInstituteofTechnology,

Blanchardstown.HeisalsoChairmanofAn

PostNationalLotteryCompany.

JamesHyland,B.Comm.,F.C.A.,F.C.I.S.,M.C.I.Arb.,M.E.W.I.Director – 1

Age 71

Appointed 11 December, 2003

Mr.HylandisaformerDeputyChief

ExecutiveofGoldenValeGroupanda

formerGroupChiefExecutiveofYoughal

Carpetsplc.HeiscurrentlyManaging

DirectorofJamesHyland&Company,

ForensicAccountants,andManaging

PartnerofHylandJohnsonMurray,

CharteredAccountants.HeisalsoChairman

ordirectorofseveralcompaniesincluding

AnPostNationalLotteryCompany.

TerryKelleher,Dip.IndustrialRelationsEmployee Director

Age 39

Appointed 1 November, 2004

Mr.KelleherstartedhiscareerinAnPost

in�987whenhejoinedtheCompany

asaClericalAssistant.Heiscurrently

employedasaClericalOfficerintheSavings

RepaymentssectionintheGPO.Anactive

memberandtrusteeoftheCivil,Public

andServicesUnion,hehasservedboth

asbranchsecretaryinAnPostandonthe

Union’sNationalExecutive.

BrianMcConnellB.B.S.Director

Age 60

Appointed 3 April, 2006

Acareerbankerbyprofession,Mr.

McConnellhascomprehensiveexperience

intheFinancialServicessector.Hehas

servedasChiefExecutiveofPermanent

tsbandUlsterInvestmentBank(Corporate

Banking/Finance).Nowretired,hehasheld

directorshipsinseveralfinancialinstitutions

includingIrishLifeandPermanentplc,

UlsterBankLimited,AllianzIreland,Irish

IntercontinentalBankandKereskedelmiet

Hittelsbank(Hungary).

AliceO’Flynn,B.A.,MSc.,Dip.LegalStudies,Cert.Eur.Comm.LawDirector – 1,3

Age 54

Appointed 27 May, 2002; second term

Ms.O’Flynnhasspentmostofherworking

careerinthecivilservice,workingfirstasan

ExecutiveandHigherExecutiveOfficerin

theDepartmentofJusticeandtheninthe

DepartmentofSocialandFamilyAffairs.She

iscurrentlyanAssistantSecretaryinthat

Departmentwithresponsibilityforhuman

resources,pensionsandcarerspolicy,

corporatedevelopmentandinternalaudit.

AnPostAnnualReport2006 5

PatrickDavorenEmployee Director – 1

Age 57

Appointed 1 November, 2004; fourth term

Mr.Davorencommencedworkin�965

withtheDepartmentofPostsand

TelegraphsandhasworkedasaPostOffice

Clerkforhisentirecareer.Hehasbeenan

activememberoftheCommunications

WorkersUnionthroughouthiscareer.He

wasalocalbranchtreasurerfortwenty

yearsandheservedontheNational

Executiveoftheunionfortwoyears.

ThomasDevlinEmployee Director – 2

Age 47

Appointed 1 November, 2004

Mr.DevlinbeganhiscareerinthePost

Officein�976whenhejoinedthe

DepartmentofPostsandTelegraphsasa

JuniorPostmanworkingasamessenger

intheMinister’sOffice.Heiscurrently

employedasanInspectorofPostmenatthe

SandyfordParcelDepot.Anactivemember

oftheCommunicationsWorkersUnion,he

servedontheNationalExecutivefortwo

yearsandwasChairmanoftheSDSDrivers

Branchfrom�996to2004.

LouiseEnglish,B.Comm,F.C.A.Director

Age 44

Appointed 1 June, 2005

Anaccountantbyprofession,Ms.English

beganhercareerwithCraigGardner/

PriceWaterhouseandthenjoinedIBI

CorporateFinance.Sheheldanumber

ofpositionsthere,includingDirectorof

Mergers&Acquisitions.Amemberofthe

InstituteofDirectors,shehasservedonthe

Boardsofanumberofpublicandprivate

IrishcompaniesincludingBordnaMónaplc

andSherryFitzgeraldplc.Sheiscurrently

anon-executivedirectorofSt.Vincent’s

HealthcareGroupLtdandotherprivate

companies.

CiaraHurley,B.B.S.,M.B.S.(Banking&Finance),M.S.I.Director – 2

Age 41

Appointed 3 April, 2006

Ms.HurleyisanInvestmentManagerwith

CitigroupQuilter.Shehasoversixteenyears

experienceinmanaginghighnetworth

clientswhichshegainedwhileworking

withGoodbodyStockbrokers,Merrill

LynchInternationalBankLtd,whereshe

wasInvestmentDirector,andnowwith

CitigroupQuilter.Sheisamemberofthe

Securities&InvestmentInstitute(Ireland)

andalsooftheInstituteofDirectors.

JohnQuinlivan,B.Sc.(Mgt.&Law),M.Sc.(SpatialPlanning),Dip.inPublicAdmin.Director – 2

Age 68

Appointed 9 May, 2003

Mr.Quinlivanhashadalengthycareer

inlocalgovernment,servinginsenior

positionsinninecounties,includingfifteen

yearsasLouthCountyManager.Heserved

forfiveyearsasamemberoftheNational

RoadsAuthorityandhealsoservedas

amemberoftheLocalGovernment

ManagementServicesBoardandtheLocal

GovernmentComputerServicesBoardand

AnComhairle.

AlanSloanePostmaster Director

Age 49

Appointed 1 January, 2007; third term

Mr.Sloanehasworkedinthefamily

groceryandpostofficebusinesssince

�976.Hewasappointedpostmasterof

LochGownapostoffice,Co.Cavanin

�979.HeisalsoManagingDirectorof

J.A.S.Limited,asecuritycounterand

furnituremanufacturingbusiness,whichhe

establishedin�985.

PeterWyer,B.Comm.,LL.B.Director – 3

Age 58

Appointed 4 February, 2003; second term

Intheearlypartofhiscareer,Mr.Wyer

workedforsometimeinmerchantbanking

buthehasspentmostofhiscareerinsales.

HejointedArchMotorsLimitedinGalway

in�976andheiscurrentlySalesDirector

andCompanySecretaryofthatcompany.

Heisalsoadirectorofanumberofother

relatedcompanies.

SECRETARY

MichaelTyndall

REGISTEREDOFFICE

GeneralPostOffice,

O’ConnellStreet,Dublin�

AUDITORS

KPMG,

CharteredAccountants

BANKERS

BankofIreland

SOLICITORS

MathesonOrmsbyPrentice

KEYTOBOARDCOMMITTEES

�AuditandSecurity

2Personnel

3Remuneration

A one-stop shop

“Lastyear,ShopDirectsoldcloseto�million

productstoover�00,000customersalloverIreland.

Thatmeantsupplyinganything–fromclothesto

cameras–directtoourcustomers’homes.AnPost

provideuswiththedirectmailsolutiontopromoteour

productlines,anunrivalleddeliverynetworkandthey

offerourcustomersthechoiceofpayingthroughbillpay,

billpay.ieandPostpoint.Allinoneintegratedservice.”

GeoffScullyCommercialDirector


IntroductionSincetheBoardapprovaloftheStrategicRecoveryPlanjustthreeyears

agotherehasbeenastrongimprovementinthecommercialandfinancial

positionoftheCompany.Therehasbeenpositivedevelopmentincore

businesses,resolutioninmanyareasofourindustrialrelationsand,above

all,restorationofconfidenceinthefutureofthebusinessasawhole.

Whiletherearestillmanychallengesahead,somequitesignificant,we

arenowinapositiontoaddressthemwithaclearunderstandingof

whatisrequiredandwithaprovenabilitytoovercomethem.Anumber

ofdevelopmentsduringtheyear,mostnotablyperhapsourentryinto

anexcitingnewfinancialservicesjointventure,reflectthesignificant

distancewehavecomeinarelativelyshorttime.

Financial PerformanceTheprofitaftertaxforthefinancialyearis€75.7m,anincreasefromthe

prioryearprofitof€40.7m.Theresultfortheyearisinpartdrivenbyan

exceptionalgainarisingfromthesaleoftheformerparcelsdepotonthe

NaasRoad.

In2006AnPostmadeanoperatingprofitbeforeretrospectivepayawardsof€�4.7m.Whilethese

profitsarewelcome,thislevelofprofitisatthelowerendofwhatisneededforinvestmentand

renewalinacompanyofthescaleofAnPost.

Revenuesin2006increasedby8.8%year-on-yearto€8�9m.Thisincreasewas,inthemain,drivenby

stronggrowthof4%inourcoremailsbusiness,concertedmarketingandbranddevelopmentactivity

andcertaintariffincreasesinmailproducts.Revenuefromservicesofferedinpostofficesincreasedby

6.�%during2006whileourportfolioofsubsidiarybusinessesalsoreportedsolidgrowth.

Overalloperatingcostsbeforeretrospectivepayawards,at€804.2m,werewithinbudget,even

allowingforincreasedspendingincertainstrategicareassuchassecurityatpostofficesandmarketing

initiatives.

Core BusinessesThegrowthof4%inmailvolume,whichishigherthanthatachievedbymostotherEuropeanpostal

administrations,reflectstheoutcomeofourfocusonsalesandmarketing,thecontinuingsuccess

oftheIrisheconomyandcurrentgrowthinthehousingstock.Itisparticularlypleasingthatitwas

achievedinayearinwhich,aspartofthepostalmarketliberalisationprocess,62%ofourrevenue

wasexposedtocompetition.TheCompanyisconfident,therefore,thatmailvolumescanbegrown

significantlyoverthenextfewyears.Toachievethiswewillbeincreasinglyactiveinthemarketplace,

encouragingand,whereappropriate,incentivisingcustomerstoincreasetheiruseofmailservices,

particularlydirectandadvertisingmail,enablingthesechannelstoreachtheirtruepotential.Thereisa

widespreadbeliefthatthegrowthofinternetusehasawhollynegativeimpactonthetraditionalmail

service.Thatisnotnecessarilytrue,asthegrowthine-commerceandretailingcontinuestohavean

importantpositiveaffectonmail,particularlyinparceldeliveries.

Chairperson’sStatement

MargaretMcGinley

Chairperson


BusinesstransactedthroughthePostOfficenetworkalsoshowedsolidgrowthin2006.BillPay,

WesternUnionmoneytransfersandMobilePhoneTop-Upservicesperformedparticularlywell.New

welfarerecipientsare,inincreasingnumbers,optingtoreceivetheirpaymentsbyelectronicfund

transferintotheirownbankaccounts.However,weremainconfidenthere,too,thatwewillhavean

increasinglyattractiverangeofproductsandservicesthroughPostbank,ournewjointventurewiththe

Europeanbankingandinsurancegroup,Fortis.

Retail NetworkTheselectionofFortis,asAnPost’sjointventurepartnerfortheprovisionofretailbankingservices

wasahighlightof2006.Selectedinautumn2005fromashortlistoffourpotentialpartners,Fortisis

oneofEurope’slargestfinancialservicescompanies.ThemarketleaderintheBeneluxcountries,ithas

operationsin20countriesandoperatestheBelgianBanquedeLaPoste.Withastraightforwardvalue-

for-moneypropositionPostbankwillbeparticularlyappealingtocustomerstraditionallyunderserved

bythebankingsectorandthemanywhohaveanaturalaffinitywithAnPost.Iampleasedthatthis

representsgenuinefreshthinkingwithinthesector,bringingmoretothecommunitiesweservethan

simplyanotherbankingoption.Indoingsoweaimtoensuretherelevanceofourdiverseproductand

serviceportfoliotoourcustomerbase.Wearecontinuouslyremindedoftheleveloftrustthatthe

publichasinAnPostwhichonlyreinforcesourdesiretocontinuetodeservesuchtrust.

AnPostcurrentlyhasacomprehensivenetworkof�,36�outlets,thehighestnumberpercaputin

Europe.Werecognisethecontinuinglevelofchangeinthesizeofthenetworkandduring2007the

Companywillundertakeacomprehensiveanddetailedreviewofthecommercialandsocialaspectsof

postofficesacrossthecountryandthemannerinwhichpostmastersareremunerated.Thisreviewwill

seektodeterminetheoptimumconfigurationforthedeliveryofservicesintheyearsahead.

Market LiberalisationTherewasafurtheropeningupofthemailsmarketin2006andasImentionedabove,62%ofAn

Post’smailsservicerevenuesnowcomefromareaswhicharefullyopentocompetition.Itisstillearly

daysfornewentrantstothemarketinIreland;theCompanyisfullyawareofthechallengeposedby

increasingcompetitionandisdeterminedtosucceedwhenthemarketisfullyliberalisedin2009.

Mailsqualityofserviceisoneareainwhichweneedtoachievesignificantimprovement.Thequality

performancestatisticforthefullyear2006,asmeasuredbyTNSmrbionbehalfoftheCommission

forCommunicationsRegulation(ComReg)isnotyetavailable,butweknowfromtherecorded

performanceforthefirstthreequartersthatthelevelachievedwassubstantiallybelowComReg’s94%

nextdaydeliverytarget.Ourperformanceinthisregardfallsfarshortofourownandourcustomers’

expectations.Anumberofinitiativeshasbeenundertakenbymanagementwiththeaimofachieving

significantimprovementsasquicklyaspossible.

�0 AnPostAnnualReport2006

Commitment to ChangeIreferredinmyintroductiontoareturnofconfidenceinAnPost.Thishasbeendueinnosmallmeasure

toanimprovementintheindustrialrelationsclimate.

Onabroaderlevel,thechallengeforAnPost,itsemployeesandtheirtradeunions,isthedevelopment

ofacultureofchange,oneinwhichchangeisregardedasanormal,continuingandconsensualprocess.

DevelopingsuchaprocessisofpivotalimportancetothefutureoftheCompany.

New StrategyInNovember2006,theBoardapprovedanewStrategicPlancoveringtheperiodto20��.Transformation

ofAnPostintoatrulycustomer-focusedbusinessthatwillsurviveandthriveinthefaceofcompetition

isatthecoreofthisplan.Keyelementsinclude:maximisingthegrowthopportunitiesavailableto

theCompany;providingconsistenthighqualityofservicethatmeetscustomers’andstakeholders’

expectations;andthedevelopmentofanewapproachforongoingengagementwithemployeesandtheir

unions,aswellasourpostofficecontractors,tocreateastimulatingandrewardingworkenvironment.

Thenewplanisundoubtedlychallenging,particularlyasitmustbeimplementedagainstabackground

ofmarketliberalisationandincreasingtechnologicalsophisticationincommunications.However,Iam

convincedthatitistherightplanforAnPost.Challenging,unquestionably,butwiththepotentialto

secureaviablefutureforallofAnPost’sstakeholders.

ConclusionDuring2006wewelcomedDonalConnellasChiefExecutive.AlreadyDonalhasmadehismarkon

theorganisation.HehasputinplaceanewtoplevelorganisationstructureandthenewStrategicPlan

owesmuchtohisvisionofhowAnPostshouldpositionitselfforthefuture.Iwishhimeverysuccessin

deliveringthisvision.

Sadly,ImustmakementionofAlanCuniffe,thelatepostmasterofJohn’sGreenPostOfficeinKilkenny.

AlanlosthislifefollowingarobberyathispostofficeinNovember.Hisuntimelydeathwasatragedyfor

hisfamilyandalowpointforAnPostin2006.Alanandthecircumstancesofhisdeathwilllivelonginthe

memoryofhiscolleaguesaswellasinthememoryofhisfamilyandfriends.Mayherestinpeace.

OnbehalfoftheBoard,Iwouldliketothankthemanagementandstaffandourcontractorsfortheir

loyaltyandworkduring2006.OnmyownbehalfIwouldliketothankmycolleaguesontheBoardfor

thededicatedandcommittedmannerinwhichtheydischargedtheirdutiesduring2006.Iwouldliketo

sayaspecialwordofthankstotheMinisterforCommunications,MarineandNaturalResourcesandhis

officialsfortheirassistanceandsupportthroughouttheyearandparticularlyfortheirenormoushelpin

progressingthenewjointventurewithFortis.

MargaretMcGinley

Chairperson

22March,2007

Chairperson’sStatementcontinued

AnPostAnnualReport2006 ��

Financial PerformanceInthis,myfirstAnnualReportsinceassumingtheroleofChiefExecutive,Iam

delightedtoreportthatAnPost’simprovedfinancialperformanceofrecentyears

continuedin2006.

Turnoverfortheyeargrewby8.8%to€8�9mmainlydrivenbyoureffortsinsales

andmarketing,growthinmailvolumeandpriceincreasesforcertainmailproducts.

Overalloperatingcostsbeforeretrospectivepayawardsfor2006amountedto

€804.2m.Operatingprofitbeforeretrospectivepayawardsamountedto€�4.7m.

WhiletheCompanyisreportingaprofitof€75.7m,aftertax,for2006thisarisesin

partfromthesaleofassets,€93.5mofthegainrelatingtothesaleofourformer

parcelsdepotontheNaasRoad.Thelevelofoperatingprofitisatthelowerendof

whatthisCompanyrequiresforreinvestmentandrenewalpurposes.

Theaccountsincludeotherexceptionalcosts;firstly,thedischargeofadeferred

increaseinstaffpayandpostmasterremunerationamountingto€20mandsecondly,

thecostofinvestigatingandpursuingtheJointVenturebusinessopportunitywithFortis.

Quality of ServiceInanotherwisepositiveyear,ourmailsqualityofserviceperformanceranksasasourceof

disappointmentandconcern.Qualityofserviceisakeyareainwhichweneedtoachievesignificant

improvement.Thequalityperformancestatisticforthefullyear2006,asmeasuredbyTNSmrbion

behalfofComReg,isnotyetavailable,butweknowfromtherecordedperformanceforthefirstthree

quarters(e.g.74%forQuarter32006)thatthelevelachievedissubstantiallybelowthe94%nextday

deliverytargetsetbyComRegforsinglepieceprioritymail.Thisisanissueofgreatconcern,notsimply

becausewearefallingshortoftheregulatorytarget,butbecausewearefallingshortofthelevelof

qualitythatourcustomersareentitledtoexpectfromusasamatterofroutine.Variousinitiatives

havebeeninstigatedbymanagementwiththeaimofachievingsignificantimprovementsasquicklyas

possible,andinQuarter�2007wearebeginningtoseeanappreciableimprovementinqualitylevels

asmeasuredbyourownoperationalmetrics.

InthecourseoftheregulatoryprocessleadingtotheapprovalbyComReginFebruary2007ofan

interimpriceincreaseonthebasicstampfrom48cto55c,qualityperformancehasemergedasan

importantpricingissue.Thisisasitshouldbe,sincethepricepaidforaserviceinherentlyreferstoa

particularqualitylevel.TheCompanyhascommitteditselftoachievingan80%nextdaydeliverytarget

in2007withintheabovemonitor,andthetimingoftheimplementationofthe2008priceincreasewill

belinkedtoperformanceagainstthisthreshold.Thisisatransitionalobjective.Ultimately,AnPostmust

achieveandconsistentlymaintainperformanceatorabovethe94%level.Wearecurrentlyestimating

atimehorizonofthreeyearstoachievethistarget.However,thereisnoreasontheCompanyshould

notbeabletoachievethislevelofquality,whichanumberofotherEuropeanpostalprovidersand

theircustomersregardasstandard.

ChiefExecutive’sReview

DonalConnell

Chief Executive


Mail ServicesIn2006,AnPostderived72.6%ofitsoverallrevenuesfromtheprovisionofmailservices.Volumegrowth

ofover4%exceededexpectations,reflectingourfocusonmarketingactivityandbranddevelopment,the

strongperformanceoftheeconomyasawholeandthecontinuedexpansionofthehousingstock.

Thislevelofgrowthinmailvolumesismuchstrongerthanthatbeingreportedinothercountries.

Despitethis,Irelandstillhasalowerlevelofmailpercaputthanistypicalforahighperformingeconomy.

Effectively,wearecatchingupwithothercountrieswhichhaveenjoyedearliereconomicsuccess.Thereis

stillgoodpotentialforgrowthinarangeofareas,mostespeciallyindirectmailservices.

Towardsthecloseof2006wewereprocessingover3.5mitemseachday,risingto8movertheChristmas

period.During2006animportantprocesschange,facilitatedbytheautomationprogrammeofrecent

years,wascompletedandenabledustosortmailtoroutelevel.Thisinitiative,whichinvolvedsubstantial

change,isbutoneconcreteexampleofwhatmustbecomethenormforAnPostintheyearsahead.We

havesubsequentlybegunaContinuousImprovementProgrammewhichinvolvesworkingcloselywith

customerstoensurethattheirmailispresentedformailinginwayswhichwilloptimisethebenefitsof

automatedprocessingandsortingforthem.

Recognisingthechangingneedsofourcustomers,weintroduced,duringtheearlypartof2006,arevised

portfolioofmailservicesdesignedtomakeourservicessimpleandmoretransparent.Customerreaction

hasbeenpositive.

Wealsocompletedtheintegrationofourparcelsbusinessintoourcoremailsactivity.Themajorityofthe

businesspreviouslytransactedundertheSDSbrandhasbeenretainedandCompanycostshavebeen

significantlyreduced.Wewillfurtherdevelopourpositioninthisgrowingsegmentofthemailsbusiness.

Theyearwasalsonoteworthyforthefurtherreduction,aspartofmarketliberalisation,intheproportion

ofthemailsmarketreservedtoAnPost.Atthispointalmosttwothirdsofourrevenueisexposedtofull

competition.AnPostrecognisesthatawarenessoftheircompetitiveoptions,amongboththegeneral

publicandbusinesscustomers,willinevitablylagsomewhatbehindtheliberalisationprocess.Thatsaid,

weknowthatincreasedcompetitionwithinthemarketrepresentsasignificantthreattoourcorebusiness.

OneofmykeyobjectivesinthecomingyearswillbetoensurethatAnPostwillbefittocompeteinafully

openmarket.

Post OfficesTheselectionofEuropeanbankingandinsurancegroup,Fortis,asAnPost’sjointventurepartnerforthe

provisionofretailbankingserviceswasoneofthemajorhighlightsof2006.Thesubsequentsuccessful

conclusionofanagreementwithFortisandtheachievementofGovernmentapprovalfortheinitiative

havecreatedaheightenedsenseofexpectancy.Withagradualroll-outofnewproductsandservices

throughoutthecountryduring2007,postofficeswillhaveasignificantlineofnewandinnovative

productsonoffer,furtherenhancingAnPost’srelevancetowhatisaverybroadcustomerbase.We

promisetobefarmorethanyetonemoreoptioninanunnecessarilyconfusingfinancialservices

marketplace.Withanover-ridingfocusonsimplicityandvalue-for-money,wewillrespectthetrustthat

ourcustomershaveinusandwhichsetsusapart.

ChiefExecutive’sReviewcontinued

AnPostAnnualReport2006 �3

Thenumberoftransactionsmadeatthecountry’spostofficesandpostalagenciesduring2006was

over�00m,withourBillPayserviceperformingparticularlywellandincreasingto25.5mbillspaidin

2006.However,newSocialWelfarerecipientsareincreasinglychoosingtoreceivetheirpaymentsby

meansotherthanthroughpostoffices.

ThepostofficenetworkisofvitalimportancetoboththebusinessandsocialfabricofIrishsociety.

Thisnetworkhascontractedinrecentyearsasaresultofretirementsandresignations.Changesin

economiccircumstances,demographicsandcustomerpurchasingpatternshaveimpactednegatively

onsomeoutletsandpositivelyonothers.Inmanyruralareasthepostofficeisoftentheonlybusiness

outletremaininginlocalitieswhereallothershaveclosed.Inurbanareas,postofficesfacedifferent

challenges.Toaddressthissituation,Ihavebegunareviewofourretailnetworktodetermine,with

absoluteclarity,theoptimumconfigurationtakingaccountofboththebusinessandsocialaspectsof

ourserviceprovision.

Wearedeeplyconsciousoftheparticularthreatstostaffandcontractorsposedbyworkinginan

environmentwhichhandles,attimes,significantvolumesofcash.During2006weadvancedthe

completionofamajor€�5minvestmentinenhancedsecuritymeasures.

Working with CustomersAsfullliberalisationofthemailsindustrycomescloser,oneofthemainchallengesfacingAnPostis

toretaintheconfidenceandsupportofkeycustomersinthefaceofemergingcompetitors.Thelevel

ofcustomerservicethatweconsistentlyprovidetothesecustomerswillplayanimportantpartinour

future.WhiletheCompanycanandwilldobetterinthisregard,Ihavebeenimpressed,duringmy

shorttimewithAnPost,bythequalityoftherelationshipthatalreadyexistsbetweentheCompany

anditskeycustomers.

Thecustomerprofilestobefoundelsewhereinthisreportaretestamenttothefactthatwehavethe

capacity,capabilityandenthusiasmtoworkwithkeycustomers,tounderstandtheirpreciseneeds

andtoprovidethemwithcustomisedservicesdesignedtoachievetheirbusinessobjectives.Iintendto

makesureoverthecomingyearsthatweincreasetherangeofcustomisedsolutionsavailableandthat

allAnPostcustomersexperiencesignificantcustomerserviceimprovements.

Industrial RelationsTheroleAnPostplaysinIreland’scompetitivenessasabusinesslocationimposesaheavy

responsibility,ofwhichIamfullyaware.Thesmoothfunctioningofourservicesiscrucialtothe

country’sattractivenessasabusinesslocation.Anactivecommitmenttofulfillingthesocialaspects

ofourbusinessisallthemoreimportantinviewoftheculturalchangecurrentlyaccompanyingour

transformationfromaStatemonopolyintoacompetitivemarketparticipant.Oursuccessinthisregard

isofsignificantimportancetoourcustomers,theirbusinessesandemployees.Wewillcontinueto

reconcileourtransformationtoacosteffective,profitablecompany,inthecontextofanemerging

market,withsuchsocialconsiderationsintheyearsahead.


OntheissueofhowongoingchangeinAnPostcanbeinculcatedintothecultureoftheorganisation,Iam

committedtoachievingagreementontheestablishmentofaforuminwhichtheCompanyanditsstaffand

unionscanengageregardingthebusinessagendatoresolvechangeissuesquickly.Areview,underthedirection

ofindependentfacilitatorPeterCassells,ofPartnershipasitpreviouslyoperatedinAnPostisakeystepinthis

regard.Thisreviewisdueforcompletionin2007andIamoptimisticthatthiskeyissuewillberesolvedtothe

satisfactionoftheCompany,staffandunions.

New StrategyFollowinganevaluationoftheCompanyoveranumberofmonths,towardstheendof2006theBoardapproved

anewstrategicplancoveringtheperiodto20��.Thisplanrecommendedthatweimplementatransformationof

theCompanyintoatrulycustomer-focussedbusinesswhichcansurviveandthriveinthefaceofcompetition.

KeyelementsincludemaximisingthegrowthopportunitiesavailabletoAnPostandprovidingconsistenthigh

qualityofservicethatmeetscustomers’andstakeholders’expectations.Iintendtoensurethedevelopmentof

anewmechanismforongoingengagementwithouremployeesandtheirunions,withtheobjectiveofcreating

astimulatingandrewardingworkenvironment.Anewtoplevelorganisationstructurehasbeenputinplaceto

supportthedeliveryofthisstrategicplan.

Againstabackgroundofmarketliberalisationandincreasingtechnologicalsophisticationincommunications,the

achievementofthisplanwillbebothchallengingandrewarding.Noneofthepositiveelementsoftheplan,nor

indeedtheobviousopportunities,canbeachievedwithoutacommitmentbyeveryoneinAnPosttoongoing

changeinthewaywecarryoutourbusinessandhowwerespondtoenvironmentalchangesinthemarketplace.

ConclusionOverall,2006wasayearofsatisfactoryperformanceforAnPost.Itwasayearduringwhichfoundationswerelaid

uponwhichwenowhavethepotentialtoachievethetransformationoftheCompany.Itwasalsoayear,Ibelieve,in

whichtherewasrejuvenationinbothcustomers’perceptionoftheCompanyandinthemoraleofouremployees.

AnPost’sfinancialprogressin2005and2006isdueinnosmallparttothecontributionmadebyitsemployees.

TheCompanyhassurvivedinalltheareasofbusinesswhereitisalreadyexposedtocompetition.Indeed,wehave

regainedlostground.Allthisbodeswellforthefutureaswefocusfurtheronservingourcustomers’needs.

IwouldliketothanktheChairpersonandtheBoardfortheirwisdom,supportandguidanceduring2006.Iwould

alsoliketothankmymanagementteam,ourstaffandcontractorsforthededicatedandcommittedmannerin

whichtheycarriedouttheirdutiesduring2006.Inconclusion,Iwishtoexpressourgratitudetoallourbusiness

partnersforthetrustplacedinus.Theirconfidencewillspurustocontinuetoimproveourperformanceandto

ensurethatwearereliablepartnersinallaspectsoflogistics,communicationsandfinancialtransactions.

DonalConnell

Chief Executive

22March,2007

ChiefExecutive’sReviewcontinued

Management

DonalConnell,C.Eng.,F.I.E.I.,B.E.Chief Executive, Age 53

Mr.ConnellwasappointedChief

Executiveon�4August,2006.

Hebeganhiscareerintheformer

DepartmentofPostsandTelegraphs

andhasheldseniormanagement

positionsinUnitrodeIreland,

3ComIrelandandMaxtorIreland

wherehewasGeneralManager

priortojoiningAnPost.Heisa

non-executivedirectorofXilinx

Corporation’sEuropeanBoard

andChairmanoftheInstituteof

Technology,Blanchardstown.Heis

alsoChairmanofAnPostNational

LotteryCompany.

JohnDaly,A.C.M.A.,M.Sc.(Mgmt.)Retail Operations Director, Age 44

Mr.DalyjoinedAnPostinDecember

�988havingworkedpreviouslyas

amanagementaccountantinFÁS.

Duringtheearlypartofhiscareer

withAnPost,heworkedinthe

Financedivisionasamanagement

accountant.Hethenheldvarious

seniorfinanceandmanagement

positionswithintheRetaildivision

beforebeingappointedtohis

currentpositioninOctober2006.

JackDempsey,B.Comm.,M.B.A.,M.P.A.Collection and Delivery Director, Age 56

Mr.DempseyjoinedthePostOffice

in�968asanExecutiveOfficerin

theformerDepartmentofPostsand

Telegraphs.Duringhiscareer,hehas

gainedwideexperienceinallaspects

ofpostaloperationsandcommercial

activities,bothnationaland

international,occupyingavarietyof

seniormanagementpositionsacross

theCompany.Hewasappointed

CollectionandDeliveryDirectorin

December2006.

PatKnight,M.Sc.(Mgmt.),F.C.I.P.D.Human Resources Director, Age 52

Mr.KnightjoinedAnPostinMarch

2004asHumanResourcesDirector.

Previously,hehadbeenGeneral

ManagerHumanResourcesat

WaterfordCrystal,whichhejoined

in�986.There,heprogressed

throughvariousseniorHRroles

bothinIrelandandtheUK.Previous

experiencealsoincludesworkas

aPersonnelOfficerwithBordna

Mónaplc.HeisaTrusteeoftheAn

PostSuperannuationSchemes.

BrianMcCormick,B.E.(Mech.),M.B.A.Services Director, Age 47

Mr.McCormickjoinedAnPost

inMay2002asStrategyDirector

andwasappointedtohiscurrent

positionofServicesDirectorin

October2003.Priorexperience

includesCRHplcandMerrion

CorporateFinancewherehewasa

Director.HeisaTrusteeoftheAn

PostSuperannuationSchemes.

LiamO’SullivanDirector Mail Processing, Age 40

Mr.O’SullivanjoinedAnPost

in�985asaPostOfficeClerk.

Duringhiscareer,hehasgained

broadexperienceacrossthefull

rangeoftheCompany’sbusiness.

PriortohisappointmentasMail

ProcessingDirectorinJuly2004,he

heldvariousseniormanagerialand

projectmanagementpositionsin

theCompany.

PeterQuinnB.Comm.,F.C.A.,M.B.A.Chief Financial Offi cer, Age 48

Mr.QuinnjoinedAnPostinAugust

2004havingpreviouslyworkedand

heldseniorfinancialandstrategic

positionsinPJCarrollandCompany

plcandMonaghanMushrooms

Limited.Earlierinhiscareer,he

trainedasacharteredaccountant

andworkedinpracticewithKPMG.

LiamSheehanSales and Marketing Director, Age 47

Mr.SheehanjoinedAnPostin

2000asGeneralManagerSales&

Marketingandhewasappointed

asSales&MarketingDirectorin

October2006.Hehasextensive

experienceintheIrishfastmoving

consumergoodssectorandinbrand

creation,channelmanagement

andsalesstrategy.Priortojoining

AnPost,heheldseniorSales&

MarketingpositionsinProctor&

GambleandinGuinnessandhe

wasCommercialDirectorwith

ErinFoods.

MichaelTyndall,B.Comm.,F.C.A.Company Secretary, Age 56

Mr.TyndalljoinedAnPostin

January�989asHeadofFinancial

Accountingandhewasappointed

CompanySecretaryinApril

�998.Hebeganhiscareerinthe

accountancyprofessionfrom

wherehequalifiedasachartered

accountant.Hethenworked

andheldseniorfinancialand

managementpositionsininsurance

anddistributionbusinesses.

HeisaTrusteeoftheAnPost

SuperannuationSchemesandheis

alsoCompanySecretarytoAnPost

NationalLotteryCompany.

BarneyWhelan,B.Sc.,M.B.A.,F.P.R.I.I.Head of Communications and Corporate Affairs, Age 52

Mr.WhelanjoinedAnPostinJanuary

2005.Havingspentmanyyearsin

theaquacultureindustry,hewas

responsibleforpublicrelationsand

brandcommunicationsattheESB.

Hesubsequentlyheldthepositionof

Director,SalesandMarketingatThe

FoodSafetyPromotionBoard.He

wasappointedtohiscurrentposition

inOctober2006.


“ScreenclickisIreland’sleadingDVDmail

ordercompany-bringingcustomers’favourite

filmsdirecttotheirhomes.Ourbusinessisentirely

dependentonanefficientdeliverypartnerfor

rentalsandreturns.That’swhereAnPostcomes

in.Quantitiesofmailhavesoaredinrecenttimes

–withourbusinessexpansion–buttherehas

beennoslowdowninservicefromAnPost.”

FrankO’GradyManagingDirector

Epic growth!


Financial Overview

2006€m

2005€m

Turnover 818.8 752.9

Operatingprofitbeforeexceptionalitems 14.7 �6.2

Profitforthefinancialyear 75.7 40.7

Profit for the yearTheprofitforthefinancialyearis€75.7m,anincreasefromtheprioryearprofitof€40.7m.Operating

profitbeforeexceptionalitemsamountedto€�4.7m,reflectingasatisfactorytradingyear.

TurnoverTurnoverincreasedby€65.9mover2005.Inthemailsbusiness,turnoverincreasedby€50.2mdue

totheincreaseincoremailvolumesandtorevenuegeneratedfrompriceincreases.Inretail,the

traditionalbusinessesofwelfarepaymentsandinvestmentservicesremainedrelativelystaticwhile

revenuesfromotherservicesincreasedduring2006.Billpay,WesternUnionandMobilePhoneTopUp

servicesperformedparticularlywell.

Operating CostsWages,salariesandpostmasters’costs,beforeretrospectivepayawardsandpensioncosts,increased

by€32.2mintheyear.Thisincreaseincludesbothpaymentofthecurrentyearelementofthepay

increasesarisingunderanationalwageagreementandcertainproductivitypaymentsunderchange

agreements.

Thepensioncharge,excludingcostsinrelationtoretrospectivepayawards,increasedby€��.7min

2006.ThischargearisesprimarilyundertheFRS�7pensionaccountingconvention.Thisaccounting

conventionismoreconservativethantheprecedentSSAP24andtheannualchargeintheaccounts

isnowmorevolatileduetomovementsinfinancialmarketsoutsideofmanagementcontrol.Thereis,

consequently,animpactontheoperatingresultsfortheyearwhichmasksanunderlyingimprovement

intheoperatingmarginofthecorebusiness.

Allotheroperatingcostsincreasedby€23.5m.Thisfiguretakesaccountoftheincreasedcostof

providingsecuritythroughoutthepostofficenetwork,arenewedemphasisonmarketing,higher

accommodationcostsandanincreaseintransportcosts.

Asset DisposalsDuringtheyear,theGroupearnedanexceptionalprofitbeforetaxfromthesaleofassetsof€94.7m.

ThedisposaloftheformerparcelsdepotontheNaasRoad,foraconsiderationof€�07m,resultedin

aprofitof€93.5mbeforecapitalgainstaxof€�6.8m.Thepriceachievedreflectedtheimportance

ofthisveryprominentdevelopmentsite.In2006,€�.2madditionalconsiderationwasreceivedarising

fromthesalein2005ofsubsidiaries,PostTSUKLimitedandAnPostTransactionServicesS.A.

FinancialReview


Joint VentureInamajorinitiativeforAnPost,anagreementtoestablishajointventurefinancialservicescompany

wassignedwithFortisinOctober2006.Thedevelopmentofthisconceptwasamajorprojectin

respectofwhichexceptionalcostsamountingto€�3.9mwereincurred.Fullvaluewasachievedin

negotiationsforAnPost’scontributionofthePostpointandOneDirectbusinessestothejointventure.

TaxationAsmentionedearlierthesaleoftheNaasRoadsiteresultedinacapitalgainstaxchargeof€�6.8m

which,togetherwithtaxontradingprofitsintheGroup,hasresultedinatotaltaxchargeof€20.9m

Capital ExpenditureTotalcapitalexpenditurein2006amountedto€�8.9m.Thisrepresentsanincreaseof€8.6mover

2005andreflectstheCompany’scapacitytoincreaseinvestmentinordertosupportitsbusinessnow

thatliquidityhasimproved.

LiquidityTheGrouphadanetcashinflowfromoperationsduringtheyearof€37.�m.Strongcashflowsfrom

bothoperationsandassetdisposalshaveresultedinincreasedcashholdingsat3�December2006.

Therewillbesignificantdemandsonthesecashresourcesintheshortterm,primarilytofinance

severancepaymentswhichwillariseasthevariouschangeprogrammesareimplemented.

AnPosthasinplaceoverdraftfacilitieswhichwerenotavailedofduringtheyear.Thetreasuryfunction

oftheCompanyoperatesunderaBoard-approvedpolicywhichislow-riskandnon-speculative.The

primaryobjectiveofthetreasuryfunctionistoensuretheavailabilityoffundsfortradingactivities

whileoptimisingthereturnonavailablecashresources.

Complete fulfi llment

“KomplettisEurope’sleadinge-commerce

businesswithinternetshopsin�0countries.Lastyearwe

receivedanorderevery36seconds24/7/365throughour

internetshops.FortheIrishmarketallordersareshipped

fromourownwarehousebasedinHolland.Ourgoalis

toserveourcustomersinthebestpossiblemanner,not

onlythroughourcomprehensivewebsiteandexcellent

customerservicebutalsothroughgooddeliveryofour

products.WithAnPostasourstrategicpartnerforIreland

we’vemanagedtoimprovethequalityofourdistribution

channelandtherewithcustomersatisfaction.”

JeroenvandeMeulengraafOperationsManager


FollowingaDirectionundertheEuropeanCommunities(PostalServices)Regulations,2002(S.I.6�6

of2002)issuedon23May2003bytheCommissionforCommunicationsRegulation(ComReg),An

Postisrequiredtopublishinitsannualreportinformationrelatingtotheuniversalserviceincluding

informationonthenumberofcomplaintsandthemannerinwhichtheyhavebeenhandled.

Requirements of the USO (Universal Service Obligation)UnderRegulation4(2)(a)oftheEuropeanCommunities(PostalServices)Regulations,2002(S.I.6�6

of2002)“theRegulations”,AnPostisdesignatedasauniversalserviceproviderwiththeobligationto

provideauniversalpostalservice.

UnderRegulation4(3)(a),auniversalserviceprovidershallguarantee,oneveryworkingdayandnot

lessthan5daysaweek,saveincircumstancesorgeographicalconditionsdeemedexceptionalby

ComReg,asaminimum:

(i) oneclearance,and

(ii) onedeliverytothehomeorpremisesofeverynaturalorlegalpersonor,bywayofderogation,

underconditionsatthediscretionofComReg,onedeliverytoappropriateinstallations.

UnderRegulation4(4)universalserviceshallincludethefollowingminimumfacilities:

(a) theclearance,sorting,transportanddistributionofpostalitemsupto2kgs;

(b) theclearance,sorting,transportanddistributionofpostalpackagesupto20kgs;

(c) servicesforregistereditems;

(d) servicesforinsureditemswithintheStateandtoandfromallcountrieswhich,assignatories

totheConventionoftheUniversalPostalUnion,declaretheirwillingnesstoadmitsuchitems

whetherreciprocallyorinonedirectiononly.

UnderRegulation4(6)theuniversalservicesshallcoverbothnationalandcross-borderservices.

UnderRegulation5,auniversalserviceprovidershallmeetthefollowingrequirementswithrespectto

theprovisionoftheuniversalservice:

(a) theserviceshallguaranteecompliancewiththeessentialrequirements;

(b) anidenticalserviceshallbeofferedtousersundercomparableconditions;

(c) theserviceshallbemadeavailablewithoutanyformofdiscriminationwhatsoever,especially

withoutdiscriminationarisingfrompolitical,religiousorideologicalconsiderations;

(d) theserviceshallnotbeinterruptedorstoppedexceptincasesofforcemajeure;and

(e) theserviceshallevolveinresponsetothetechnical,economicandsocialenvironmentandtothe

needsofusers.

UniversalService


Access to Universal ServicesAnPostprovidesaccesstoitsservicesthroughanetworkof84Companypostoffices,�,277

contractor-operatedpostofficesand�7�postalagencies.Inaddition,some5,204retailpremisesare

licensedtosellpostagestamps.Tofacilitatephysicalaccesstotheservice,approximately5,000post

boxesaredistributedwidelythroughouttheState.

TheDisabilityAct,2005placesadutyonpublicorganisationstoensurethattheirpublicbuildings

andservicesare,asfarasispracticable,accessibletopeoplewithdisabilities.Inparticular,thoseareas

ofbuildingstowhichthepublichasaccessaretobemadeaccessiblenotlaterthan20�5.AnPost

hasbegunaprogrammetoaddresssuchissuesattheofficesitownsandisontarget,subjecttothe

necessaryexternalapprovals,tomeetitscommitmentsundertheAct.Themajorityofpostofficesare,

however,operatedonacontractbasisbypostmastersandpostmistressesappointedbyAnPost.The

Companyisnotinapositiontoobligethemtoaltertheirpremisesbuttheyareencouragedtoaddress

anyaccessissuesthatmayexistontheirpremisesonavoluntarybasis.Allnewcontractsrequirethe

postmasterorpostmistresstoprovideaccessiblepremises.

TariffsThefollowingisasummaryofthepricesforUSOservices(from�March2007).

Ireland&N.I. Letters(uptoC5)(<�00g)

LargeEnvelopes(<�00g)

Packets(<�00g)

Parcels(<0.5kg)

StandardPost 55c† 95c €2.�0 €6.25

RegisteredPost* €5.00 €5.00 €5.00 €�0.00

*The fee payable for the basic registered service covers compensation up to a maximum of €320. Further compensation up to a limit of €1,500 is available for €4 and up to a limit of €2,000 for €5 based on declared value at time of posting.

†Where the customer pays by meter frank or Ceadúnas, a 1c payment-method discount for the letter rate applies i.e. a price of 54c

Elsewhere <50g <50g <50g <0.5kg

StandardPost 78c €�.45 €2.60 €�7.50UK€25.00Europe€2�.00ROW

RegisteredPost* €4.93 €5.60 €6.75 €22.00UK€30.00Europe€26.00ROW

*Availability of service dependent on postal administration in destination country. Compensation up to €320 in UK; €150 in Europe; €100 for parcels and €35 for letters outside Europe

AdditionalinformationinrelationtoservicesprovidedbyAnPostisavailablefromAnPostCustomer

ServicesonCallSave�850575859orfromwww.anpost.ie


Quality of ServiceThequalityperformancestandardforthedeliveryofintra-Communitycross-bordermailwassetbythe

EuropeanCommissionandwastransposedintoIrishlawunderRegulation�2(2)oftheRegulationsand

itsSchedule.Thequalitystandardforpostalitemsofthefasteststandardcategoryisasfollows:

D+3:85%ofitems;D+5:97%ofitems,

whereDreferstothedayofposting.

TheRegulationsrequireComRegtosetaquality-of-servicestandardfortheuniversalserviceand

thestandardsetfordomesticmailmustbecompatiblewiththoseforintra-Communitycross-border

services.ComReghassetaquality-of-servicetargetfordomesticsinglepieceprioritymailasfollows:

D+1:94%D+3:99.5%.

MonitoringofperformanceagainstthesetargetsiscarriedoutbyTNSmrbionbehalfofComReg.Details

ofthemostrecentresultsfromthismonitorareavailablefromComReg’swebsitewww.comreg.ie.

Customer ComplaintsIn2006,therewere3�5,642telephonecallsmadetotheAnPostCustomerServicesCentre.Mostof

thesewereroutineorgeneralenquiriesratherthancomplaints.

AnPostisrequiredtomaintainrecordsofcustomercomplaintstakingintoaccounttherelevant

EuropeanstandardIS:EN�40�2:2003.Thetableprovides,inrelationtomail,abreakdownofwritten

complaintsreceivedfromcustomersduring2006.Thetotalcontinuestorepresentaminutefractionof

theentiremailtraffichandledduringtheyear.

UniversalServicecontinued


Writtencomplaintsreceivedfromcustomers:

Itemslostorsubstantiallydelayed 23,6�9

Itemsdamaged 756

Itemsarrivinglate �,475

Mailcollectionordelivery: Time of delivery Failure to make daily delivery to home or premises Collection times/Collection failures

62396

�2

Misdelivery 99

Accesstocustomerserviceinformation 27

Underpaidmail 25

Tariffsforsinglepiecemail/discountschemesandconditions 22

Registereditems 6,�90

Changeofaddress(Redirections) �0

Behaviourandcompetenceofpostalpersonnel 47

Howcomplaintsaretreated 7

Other(notincludedinabove) �,064

Total 33,8��

ComRegrequiresAnPosttopublishaCodeofPracticetodealwithCustomerComplaintsanda

proposalinthisregardwassubmittedtoComRegduring2006.


During2006,thePhilatelicServiceissued45specialandcommemorativestamps.Theissuescovereda

widerangeofsubjectsreflectingcontemporaryevents,suchasIreland’shostingoftheRyderCup,and

notableanniversarieslikethe�9�6RisingandtheBattleoftheSommeaswellastopicsofperennial

interestlikeIreland’sInlandWaterwaysandNativeTrees.Technicalinnovationwasaparticularfeature

ofthe2006stampprogrammewiththeissueofIreland’sfirst“lenticular”stamps(whereholographic

technologygivestheimpressionofmovementonthestamp)fortheRyderCupandtheinclusionof

BrailleontheIrishGuideDogsfortheBlindstamp.

Afurtherfivestampswereissuedinthecurrentdefinitiveseries-theveryattractiveIrishWildFlowers

set.Inadditiontotheannualspecialandcommemorativeissues,thePhilatelicServicealsoissueda

YearPackandtheannualYearBook,abeautifulpublicationwhichgoesbehindthestampstogive,in

wordandpicture,aninformativeinsightintothesubjectscommemoratedonIreland’sstampsduring

theyear.

StampIssuesandPhilatelicPublications


Index to the Financial Statements

28 ReportoftheDirectors

32 CorporateGovernance

40 StatementoftheDirectors

ontheAccountingSystems

4� StatementofDirectors’Responsibilities

42 ReportoftheIndependentAuditor

45 ReportoftheIndependentAuditor

ontheAccountingSystems

46 AccountingPolicies

50 ConsolidatedProfitandLossAccount

5� ConsolidatedStatementof

TotalRecognisedGainsandLosses

52 ConsolidatedBalanceSheet

53 CompanyBalanceSheet

54 ConsolidatedCashFlowStatement

55 NotestotheFinancialStatements

76 FiveYearFinancialSummary

77 OperationalStatistics


ThedirectorshavepleasureinsubmittingtheirtwentythirdAnnualReporttogetherwiththeauditedfinancial

statementsoftheGroupfortheyearended3�December,2006,infulfilmentoftheirobligationsunderthe

CompaniesActs,�963to2006.

1. The Group and its Principal Activities

TheCompanyoperatesthenationalpostalserviceandmoneytransmissionservicesandprovidesagency

servicesforGovernmentDepartments,theNationalTreasuryManagementAgency,AnPostNational

LotteryCompanyandotherbodies.

OneordinaryshareisheldbytheMinisterforFinanceandtheremainderoftheissuedsharecapitalisheld

bytheMinisterforCommunications,MarineandNaturalResources.

Detailsoftheactivitiescarriedonbysubsidiary,associatedandjointventureundertakings,togetherwith

theinformationrequiredbySection�58oftheCompaniesAct,�963,aregiveninnote24tothefinancial

statements.

2. Results

Detailsoftheresultsfortheyeararesetoutintheconsolidatedprofitandlossaccountonpage50andin

therelatednotestothefinancialstatements.Thedirectorsdonotproposethepaymentofadividendfor

theyear.

3. Business Review

TheinformationrequiredbyRegulation37oftheEuropeanCommunities(Companies:GroupAccounts)

Regulations,�992,isincludedintheinformationgivenonpages8to25.

Asdescribedtherein,theperformanceoftheGroupandCompanyinthecurrentyearhasbeen

satisfactorywithanoperatingprofitbeforeexceptionalitemsof€�4.7m.Theprofitforthefinancial

yearwas€75.7mandisinclusiveofanexceptionalprofitondisposalofassetsof€94.7m,exceptional

costsof€20.0mforpaymentofretrospectivepayawardsand€�3.9minestablishingafinancialservices

jointventurewithFortisBank.Furtherdetailsoftheseexceptionalitemsaregiveninnote4tothe

financialstatements.Actuarialgainsonpostemploymentplansamountedto€��8.�mresultingintotal

recognisedgainsof€�93.8m.TheGrouphadnetassetsof€�25.3mat3�December2006compared

tonetliabilitiesof€68.5mat3�December2005.Thesefiguresincludeapensionliabilityof€�93.2m

(2005:€307.8m),seenote�8forfurtherdetails.

ReportoftheDirectors


Inmonitoringperformance,thedirectorsandmanagementhaveregardtoarangeofkeyperformance

indicators(KPIs),includingthefollowing:

KPI Performancein2006

Performancein2005

Financial–consolidatedresults

Operatingprofitbeforeexceptionalitemsasapercentageofturnover 1.8% 2.2%

Staffandpostmasters’costsbeforeexceptionalitemsasapercentageofturnover

68.2% 68.3%

Otheroperatingcostsasapercentageofturnover 30.0% 29.5%

Netcashinflowfromoperatingactivities €37.1m €40.9m

Staff

AnPoststaff–FullTimeEquivalent–atyearend 8,868 8,966

Casualstaff–FullTimeEquivalent 423 377

Overtimehours–FullTimeEquivalent 2,006 �,953

Total–FullTimeEquivalent 11,297 ��,296

Mailbusiness

Letterscorerevenueindex 4.2% 4.0%

Qualityofservice(national)–NextdaydeliveryofsinglepieceprioritymailQuarter3*

74% 74%

Retailbusiness

Socialwelfaretransactions 36.6m 37.7m

BillPaymenttransactions 25.5m 24.8m

TVLicencesales(thousands) 1,339k �,273k

InvestmentProducts–netfundinflow €143.0m €�73.0m

PostOfficeSavingsBank(incl.SSIA)–netfundinflow €43.0m €�72.7m

BurglariesandRobberies–numberofincidents 103 �92

CustomerService

Writtencomplaints 33,811 36,478

Telephoneenquiries(routineandcomplaints) 315,642 276,464

*Figures as per ComReg Monitor. Full year 2006 figures are not yet available, (2005: 73%).


Inaccordancewiththerequirementtoanalysethekeyrisksanduncertaintiesfacingthefuture

developmentoftheGroupandCompany,thefollowinghavebeenidentified:

• competitivethreatstomailsrevenue;

• failuretofullyimplementagreedChangeProgrammes;

• theimpactofhighlevelsofabsenteeismonthebusiness;

• failuretoachieveandmaintainqualityofservicetargets;

• potentiallossofsignificantagencyservices;

• electronicsubstitutionformail;

• thearrangementsfordownstreamaccesstomailsservices;

• failuretoresolveindustrialrelationsissuesthroughagreedprocesses;

• thesuccessoftheAnPostFinancialServicesStrategy.

Thedirectorshaveanalysedtheseandotherrisksandappropriateprogrammesareinplacetomanage

andcontroltheserisks.TheCorporateGovernanceStatementonpages32to39setsoutthepoliciesand

approachtorisksandtherelatedinternalcontrolproceduresandresponsibilities.

4. Directors, Secretary and their Interests

ThefollowingchangeshavetakenplaceinthecompositionoftheBoardsincethedateoftheprevious

reportofthedirectors:

Ms.CiaraHurleyappointed3April,2006

Mr.BrianMcConnellappointed3April,2006

Mr.DonalCurtinretired�3July,2006

Mr.DonalConnellappointed�4August,2006

Mr.AlanSloaneretired3�December,2006,reappointed�January,2007.

Thedirectorsandsecretarywhoheldofficeat3�December,2006hadnointerestsinthesharesin,or

debenturesof,theCompanyoranyGroupcompany.

5. Employees

TheGroupisanequalopportunitiesemployer.Allapplicationsforemploymentaregivenfullandfair

consideration,dueregardbeinggiventotheaptitudeandabilityoftheindividualandtherequirements

ofthepositionconcerned.Allpersonsaretreatedonequaltermsasregardstraining,careerdevelopment

andpromotion.

TheGroupiscommittedtothehigheststandardsofsafetyandhealthpracticesinordertomeetthe

requirementsandfutureregulationsoftheSafety,HealthandWelfareatWorkAct,2005.Healthand

safetymanagementco-ordinatethepoliciesoutlinedintheGroup’sSafetyStatement,whichisdesigned

toensureasafeplaceandsystemofworkforallGroupemployees.

ReportoftheDirectorscontinued

AnPostAnnualReport2006 3�

6. Prompt Payment of Accounts

ThepolicyofAnPostistocomplywiththerequirementsofrelevantpromptpaymentofaccounts

legislation.TheGroup’sstandardtermsofcredittaken,unlessotherwisespecifiedinspecificcontractual

arrangements,are30days.Appropriateinternalfinancialcontrolsareinplace,includingclearlydefined

rolesandresponsibilitiesandmonthlyreportingandreviewofpaymentpractices.Theseprocedures

providereasonablebutnotabsoluteassuranceagainstmaterialnon-compliancewiththeregulations.

7. Accounting Records

ThedirectorsbelievethattheyhavecompliedwiththerequirementsofSection202oftheCompanies

Act,�990withregardtobooksofaccountbyengagingaccountingpersonnelwithappropriateexpertise

andbyprovidingadequateresourcestothefinancefunction.ThebooksofaccountoftheCompanyare

maintainedattheCompany’spremisesattheGeneralPostOffice,O’ConnellStreet,Dublin�.

8. Auditors

InaccordancewithSection�60(2)oftheCompaniesAct,�963,theauditors,KPMG,Chartered

Accountants,willcontinueinoffice.

OnbehalfoftheBoard

MargaretMcGinley

Chairperson

DonalConnell

Director

22March,2007


MaintaininghighstandardsofcorporategovernancecontinuestobeapriorityforthedirectorsofAnPost.

Indevelopingitscorporategovernancepolicy,theBoardhassoughttogiveeffectbothtotheCodeof

PracticefortheGovernanceofStateBodies,issuedbytheDepartmentofFinance,andtotherelevantmain

andsupportingprinciplesofgoodgovernanceoutlinedinthe2003CombinedCodeissuedbytheUnited

Kingdom’sFinancialReportingCouncil.WhiletheprovisionsoftheCombinedCodeareofdirectrelevance

onlytolistedcompanies,theBoarddoesfeelthattheirapplication,whereappropriate,assistsAnPostinits

compliancewithbestcorporategovernancepractice.

Thedirectorsareaccountabletotheshareholdersforgoodcorporategovernanceandthisreportaddresses

howtheCodeofPracticefortheGovernanceofStateBodiesandtherelevantmainandsupportingprinciples

ofthe2003CombinedCodehavebeenappliedwithinAnPost.

The Board

TheGroupiscontrolledthroughitsBoardofdirectors.TheBoard’smainrolesaretooverseetheoperationof

theGroup,toprovideleadership,toapprovestrategicobjectivesandtoensurethatthenecessaryfinancialand

otherresourcesaremadeavailabletoenablethoseobjectivestobemet.TheBoardmeetsonamonthlybasis

andcertainmattersarespecificallyreservedtotheBoardforitsdecision.

ThespecificresponsibilitiesreservedtotheBoardinclude:settingGroupstrategyandapprovinganannual

budgetandmedium-termprojections;reviewingoperationalandfinancialperformance;approvingmajor

capitalexpenditure;reviewingtheGroup’ssystemsoffinancialcontrolandriskmanagement;ensuringthat

appropriatemanagementdevelopmentandsuccessionplansareinplace;reviewingtheenvironmental,health

andsafetyperformanceoftheGroup;andmaintainingsatisfactorycommunicationwithshareholders.

TheBoardhasdelegatedthefollowingresponsibilitiestomanagement:thedevelopmentandrecommendation

ofstrategicplansforconsiderationbytheBoardthatreflectthelonger-termobjectivesandpriorities

establishedbytheBoard;implementationofthestrategiesandpoliciesoftheGroupasdeterminedbythe

Board;monitoringoftheoperatingandfinancialresultsagainstplansandbudgets;prioritisingtheallocation

oftechnicalandhumanresources;anddevelopingandimplementingriskmanagementsystems.

The Roles of the Chairperson and the Chief Executive

TheChairpersonleadstheBoardinthedeterminationofitsstrategyandintheachievementofitsobjectives.

TheChairpersonisresponsiblefororganisingthebusinessoftheBoard,ensuringitseffectivenessandsetting

itsagenda.TheChairpersonfacilitatestheeffectivecontributionofalldirectorsandconstructiverelations

betweentheexecutivedirectorandtheotherdirectors,ensuresthatdirectorsreceiverelevant,accurateand

timelyinformationandmanageseffectivecommunicationwithshareholders.

TheChiefExecutivehasdirectchargeoftheGrouponadaytodaybasisandisaccountabletotheBoardfor

thefinancialandoperationalperformanceoftheGroup.

Senior Independent Director

TheBoardhasconsideredthequestionofappointingoneofitsmemberstobeaSeniorIndependentDirector,

inadditiontotheChairperson,butcontinuestobelievethatthisrecommendationoftheCombinedCodeis

notapplicableinthelightofAnPost’slegalstructure.

CorporateGovernance


Directors and Directors’ Independence

AlldirectorsareappointedtotheBoardbytheMinisterforCommunications,MarineandNaturalResources

andtheirconditionsofappointmentandfeesaresetoutinwriting.Employeedirectorsareelectedin

accordancewiththeWorkerParticipation(StateEnterprises)Acts,�977to�993foratermoffouryears.The

postmasterdirectoriselectedinaccordancewithSection8�ofthePostalandTelecommunicationsServices

Act,�983foratermofthreeyears.Allotherdirectorsareappointedforafixedterm,usuallyfiveyears.

TheBoardiscurrentlycomprisedoffifteendirectorsviz:theChiefExecutive,fiveemployeedirectors,one

postmasterdirectorandeightnon-executivedirectors.Thenamesofthedirectorstogetherwiththeir

biographicaldetailsaresetoutonpages4and5.ThepositionsofChairpersonandChiefExecutiveareheld

bydifferentpeople.GivenitslegalstatusasaStateCompanyandtheresponsibilityofitsprincipalshareholder

intheappointmentofdirectors,theBoardbelievesthatthecriterianormallyusedbytheBoardofalisted

companyinconsideringtheindependenceofitsdirectorsdonotapplyinAnPost’scircumstances.TheBoard,

consequently,hasnotevaluatedtheindependenceofitsdirectorsagainstthecriteriasetoutinthe2003

CombinedCode.

The2003CombinedCoderequirestheChairpersontoholdmeetingswiththenon-executivedirectorswithout

theexecutivedirectorbeingpresent.TheBoardhasputinplaceprocedureswherebyitwillmeetwithoutthe

ChiefExecutivebeingpresent.

DirectorshavetherighttoensurethatanyunresolvedconcernstheymayhaveabouttherunningoftheGroup

oraboutaparticularcourseofactionarerecordedintheBoardminutes.Iftheyhaveanysuchconcerns,they

may,onresignation,provideawrittenstatementtotheChairperson,forcirculationtotheBoard.

ThedirectorsaregivenaccesstoindependentprofessionaladviceattheGroup’sexpensewheretheydeemit

necessarytodischargetheirresponsibilitiesasdirectors.

Professional Development

Onappointment,allnewdirectorstakepartinaninductionprogrammewhentheyreceiveinformation

abouttheGroup,theroleoftheBoardandthemattersreservedforitsdecision,thetermsofreferenceand

membershipoftheprincipalBoardandBoardCommittees,theGroup’scorporategovernancepracticesand

procedures,includingtheresponsibilitiesdelegatedtoGroupseniormanagement,andthelatestfinancial

informationabouttheGroup.Thiswilltypicallybesupplementedbymeetingswithkeyseniorexecutives.

Throughouttheirperiodinoffice,thedirectorsarecontinuallyupdatedontheGroup’sbusiness,the

competitiveandregulatoryenvironmentsinwhichitoperates,corporatesocialresponsibilitymattersand

otherchangesaffectingtheGroupandthepostalindustryasawhole,bywrittenbriefingsandmeetingswith

seniorexecutives.Directorsarealsoadvisedonappointmentoftheirlegalandotherdutiesandobligationsas

adirector,bothinwritingandinface-to-facemeetingswiththeCompanySecretary.Theyarealsoupdatedon

changestothelegalandgovernancerequirementsoftheGroupanduponthemselvesasdirectors.


Performance Evaluation

TheBoardhasadoptedandisimplementingaprocessfortheannualevaluationofitsownperformance

andthatofitsprincipalCommittees.Itconsidersthattheintroductionofanyfurtherevaluationofindividual

directorswouldbeinappropriategiventhemannerofappointmentofdirectors,theshareholdingstructure

andexistingBoardprocedures.

The Company Secretary

TheCompanySecretaryisafulltimeemployeeofAnPost.TheCompanySecretaryisresponsibleforadvising

theBoardthroughtheChairpersononallgovernancematters.Alldirectorshaveaccesstotheadviceand

servicesoftheCompanySecretary.TheCompany’sArticlesofAssociationprovidethattheappointmentand

removaloftheCompanySecretaryisamatterforthefullBoard.

Information

RegularreportsandpapersarecirculatedtothedirectorsinatimelymannerinpreparationforBoardand

Committeemeetings.Thesepapersaresupplementedbyinformationspecificallyrequestedbythedirectors

fromtimetotime.

Thedirectorsreceivemonthlymanagementaccountsandregularmanagementreportsandinformationwhich

enablethemtoscrutinisetheGroup’sandmanagement’sperformanceagainstagreedobjectives.

Relations with Shareholders

TheBoardandmanagementmaintainanongoingdialoguewiththeCompany’sshareholdersonstrategic

issues.

TheChairpersonandtheChiefExecutivegivefeedbacktotheBoardonissuesraisedwiththembythe

shareholders.AlldirectorsnormallyattendtheAnnualGeneralMeetingandshareholdersareinvitedtoask

questionsduringthemeetingandtomeetdirectorsaftertheformalproceedingshaveended.

Internal Control

Anongoingprocessexistsforidentifying,evaluatingandmanagingthesignificantrisksfacedbytheGroup.

Thisprocess,whichisbasedontheCombinedCodeGuidancefordirectors,issuedbytheInstituteof

CharteredAccountantsinEnglandandWales(theTurnbullGuidance),isperiodicallyreviewedbythedirectors

andhasbeeninplacethroughouttheaccountingperiodanduptothedatethefinancialstatementswere

approved.

InaccordancewiththeguidanceoftheTurnbullcommittee,thedirectorsareresponsiblefortheGroup’s

systemofinternalcontrol,shouldsetappropriatepoliciesoninternalcontrol,shouldseekregularassurance

thatwillenablethemtosatisfythemselvesthatthesystemisfunctioningeffectivelyandshouldensurethatthe

systemofinternalcontroliseffectiveinmanagingrisksinthemannerwhichithasapproved.Suchasystemis

designedtomanageratherthaneliminatebusinessrisksandcanprovideonlyreasonableratherthanabsolute

assuranceagainstmaterialmisstatementorloss.

CorporateGovernancecontinued


ThedirectorshavecontinuedtoreviewtheeffectivenessoftheGroup’ssystemoffinancialandnon-financial

controlsduring2006,includingoperationalandcompliancecontrols,riskmanagementandtheGroup’s

highlevelinternalcontrolarrangements.Thesereviewshaveincludedanassessmentofinternalcontrolsby

management,managementassuranceofthemaintenanceofcontrols,reportsfromtheinternalauditorsand

reportsfromtheexternalauditoronmattersidentifiedinthecourseofitsstatutoryauditwork.

TheGroupviewsthecarefulmanagementofriskasakeymanagementactivity.Managingbusinessriskto

deliveropportunitiesisakeyelementofallactivities.Thisisdoneusingasimpleandflexibleframeworkwhich

providesaconsistentandsustainedwayofimplementingtheGroup’svalues.Thesebusinessrisks,which

maybestrategic,operational,reputational,financialorenvironmental,shouldbeunderstoodandvisible.The

businesscontextdeterminesineachsituationthelevelofacceptableriskandcontrols.

Managementisresponsiblefortheidentificationandevaluationofsignificantrisksandforthedesignand

implementationofappropriateinternalcontrols.Theserisksareassessedonanongoingbasisandarederived

fromavarietyofexternalandinternalsources.ManagementreportsregularlytotheBoardonthekeyrisks

inherentinthebusinessandonthewayinwhichtheserisksaremanaged.Managementalsoreportstothe

BoardonanysignificantchangesintheGroup’sbusinessandonanyrisksassociatedwithsuchchanges.The

processusedtoidentifyandmanagekeyrisksisanintegralpartoftheinternalcontrolenvironment.

Thekeyprocedureswhichthedirectorshaveestablishedwithaviewtoprovidingeffectiveinternalcontrolare

asfollows:

• AclearfocusonbusinessobjectivesasdeterminedbytheBoardafterconsiderationofthestatutory

responsibilitiesandriskprofileoftheGroup’sbusiness.

• Adefinedorganisationalstructurewithclearlinesofresponsibility,delegationofauthorityand

segregationofdutiesdesignedtofosterabeneficialcontrolenvironment.

• Ariskmanagementprocesswhichconsidersthestrategyanddevelopmentofthebusinessinthecontext

oftheannualbudgetprocesswhenfinancialplansandperformancetargetsaresetandreviewedbythe

BoardinlightoftheGroup’soverallobjectives.

• AreportingandcontrolsystemwhichensuresthatindividualbusinessesreporttotheBoardonan

ongoingbasisontheirprogressinachievingobjectives.Thesystemforreportingcoversbothoperational

andfinancialperformance,occursonatimelybasisandensuresthatbudgetaryvariancesareexamined

andaddressedpromptly.

• Aninternalauditfunctionwhichmonitorscompliancewithpoliciesandtheeffectivenessofinternal

controlwithintheGroup’sbusinesses.Theworkingoftheinternalauditfunctionisfocusedontheareas

ofgreatestrisktotheGroup.

• ABoardlevelcommittee,theAuditandSecurityCommittee,whichapprovesinternalandexternalaudit

plansanddealswithsignificantcontrolissuesraisedbyinternalandexternalauditors.


Attendance at Meetings of the Board, the Remuneration Committee and the Audit and Security Committee

ThirteenBoardmeetingswereheldduringtheyearended3�December,2006andtheattendancerecordof

eachdirectorissetoutinthefollowingtable:

Name Eligibletoattend Attended

MargaretMcGinley �3 �3

PatrickCompton �3 �2

JerryCondon �3 �2

DonalConnell 3 3

DonalCurtin 8 8

PatrickDavoren �3 ��

ThomasDevlin �3 ��

LouiseEnglish �3 �2

CiaraHurley 9 6

JamesHyland �3 �2

TerryKelleher �2 ��

BrianMcConnell 9 8

AliceO’Flynn �3 �2

JohnQuinlivan �3 �0

AlanSloane �3 �3

PeterWyer �3 ��

EightmeetingsoftheRemunerationCommitteewereheldduringtheyearended3�December,2006andthe

attendancerecordofeachdirector,eligibletoattend,issetoutinthefollowingtable:


MargaretMcGinley 8 8

AliceO’Flynn 8 8

PeterWyer 8 7

SevenmeetingsoftheAuditandSecurityCommitteewereheldduringtheyearended3�December,2006

andtheattendancerecordofeachdirector,eligibletoattend,issetoutinthefollowingtable:


PatrickDavoren 7 7

JamesHyland 7 7

AliceO’Flynn 7 6



Directors’ Remuneration

TheremunerationoftheChiefExecutiveisdeterminedinaccordancewiththeguidelinesissuedbythe

DepartmentofFinancefordeterminingtheremunerationofChiefExecutiveOfficersofCommercialState

BodiesandissubjecttotheapprovaloftheRemunerationCommitteeoftheBoardofAnPostandthe

MinisterforCommunications,MarineandNaturalResources.Theobjectiveistomaintaintheremunerationof

theChiefExecutiveatalevelwhichisattractivetotheindividualwhile,atthesametime,representingvalue

formoneyfortheGroup.AproportionoftheChiefExecutive’sremunerationisperformancerelatedand,in

thisway,islinkedtotheGroupandindividualobjectives.

FeesforalldirectorsaredeterminedbytheMinisterforCommunications,MarineandNaturalResourceswith

theapprovaloftheMinisterforFinance.

Thedisclosuresmadeinthesefinancialstatementsrelatingtodirectors’emolumentsandpensioninformation

arethoserequiredundertheIrishCompaniesActs,�963to2006.

Remuneration Committee

TheRemunerationCommitteeiscomprisedofthreenon-executivedirectors.MargaretMcGinleyactsas

ChairpersonoftheCommittee.Whennecessary,non-Committeemembersareinvitedtoattend.The

Committee’sprincipalresponsibilitiesare:

• todetermine,onbehalfoftheBoard,theremunerationandothertermsandconditionsofemploymentof

theChiefExecutive,subjecttocompliancewithGovernmentpolicyrelatingthereto;

• todetermine,onbehalfoftheBoard,thepaystructuresandtermsandconditionsofothersenior

personnel(asidentifiedbytheChairpersonoftheBoard);

• tobeinformedofsignificantdevelopmentsinindustrialrelationsandtoreviewindustrialrelationspolicies

toensurethestrategyisconsistentwiththeachievementofthebusinessplansofAnPostand,onbehalf

oftheBoard,totakedecisionsonsuchmatters;

• toact,onbehalfoftheBoard,andtakedecisionsrelatedtopayandpayrelatedmatters,asthe

ChairpersonoftheBoardshalldetermine;

• toact,onbehalfoftheBoard,andtakesignificantdecisionsonmatterssuchasremunerationpolicy,

benefits,staffgrading,thirdpartyrecommendationsandrelatedissues.

Audit and Security Committee

TheAuditandSecurityCommitteeiscomprisedoftwonon-executivedirectorsandoneemployeedirector.

ItsChairman,JamesHyland,hasrecentandrelevantfinancialexperience.Whennecessary,non-Committee

membersareinvitedtoattend.Underitstermsofreference,theCommitteeistoassisttheBoardinfulfilling

itsresponsibilitiesbyprovidinganindependentreviewoffinancialreporting,bysatisfyingitselfastothe

effectivenessoftheCompany’sinternalcontrolsandastothesufficiencyoftheexternalandinternalaudits.


TheCommitteeisresponsibleformonitoringtheeffectivenessoftheexternalauditprocessandmaking

recommendationstotheBoardinrelationtotheappointment,re-appointmentandremunerationofthe

externalauditors.ItisresponsibleforensuringthatanappropriaterelationshipbetweentheGroupandthe

externalauditorsismaintained,includingreviewingnon-auditservicesandfees.Asaresultofregulatory

orsimilarrequirements,itisnecessarytoemploytheGroup’sexternalauditorsforcertainauditrelatedand

non-auditservices.Inordertomaintaintheindependenceoftheexternalauditors,theAuditandSecurity

Committeehasdeterminedpoliciesastowhatauditrelatedandnon-auditservicescanbeprovidedbythe

Group’sexternalauditorsandtheapprovalprocessrelatedtotheseservices.Underthesepolicies,workofa

consultancynaturewillnotbeofferedtotheexternalauditorsunlessthereareclearefficienciesandvalue-

addedbenefitstotheGroupwhileensuringthattheobjectivityandindependenceoftheexternalauditorsis

maintained.TheAuditandSecurityCommitteemonitorstheleveloffeespaidtotheexternalauditors.

TheCommitteereviewsannuallytheGroup’ssystemsofinternalcontrolandtheprocessesformonitoringand

evaluatingtherisksfacingtheGroup.

TheCommitteealsoassistsand,whererelevant,makesrecommendationstotheBoardonthedischargingof

itsresponsibilitiesinrelationtosecurity.

TheCommitteemeetswithmanagement,aswellasprivatelywiththeexternalauditors.

In2006theAuditandSecurityCommitteedischargeditsresponsibilitiesby:

• reviewingtheGroup’sdraftfinancialstatementsfor2005priortoBoardapprovalandmeetingand

reviewingwiththeexternalauditorstheirreportsthereon;

• reviewingtheappropriatenessoftheGroup’saccountingpolicies;

• reviewingthepotentialimpactontheGroup’sfinancialstatementsofsignificantmattersarisingduring

theyear;

• reviewingtheresourcesofinternalaudit,approvingtheinternalauditplans,reviewinginternalaudit

reportsanddealingwithsignificantcontrolissuesraisedbytheinternalauditors;

• reviewingandapprovingtheauditfeeandreviewingnon-auditfeespayabletotheGroup’sexternal

auditors;

• reviewingtheexternalauditors’planfortheauditoftheGroup’sfinancialstatementsfor2006,

confirmationsofauditorindependenceandtheproposedauditfee,andapprovingthetermsof

engagementfortheaudit;

• reviewingthekeyriskstothebusinessandconsideringtheadequacyoftheGroup’ssystemofrisk

identificationandassessment;



• reviewinganannualreportontheGroup’ssystemsofinternalcontrolanditseffectiveness,reportingto

theBoardontheresultsofthereviewandreceivingregularupdatesonkeyriskareasoffinancialcontrol;

• reviewingsecuritypoliciesandproceduresfortheprotectionofstaff,postmastersandcustomersandfor

safeguardingassetsandtheimplementationofandcompliancewiththosepoliciesandprocedures.

TheGroupoperatesprocedurestoensurethatappropriatearrangementsareinplaceforemployeestobeable

toraise,inconfidence,mattersofpossibleimpropriety,withsuitablesubsequentfollow-upaction.Reporting

channelshavebeencreatedwherebyperceivedwrongdoingmaybereportedviapost,telephoneandemail,

anonymouslyifpreferred.

Nomination Committee

AsalltheauthorityregardingtheappointmentofdirectorsisvestedintheMinisterforCommunications,

MarineandNaturalResources,withtheconsentoftheMinisterforFinance,thematterofconstitutinga

NominationCommitteedoesnotrequireconsiderationbytheBoard.

Compliance Statement

Asnotedabove,indevelopingitscorporategovernancepolicy,theBoardhassoughttogiveeffectbothto

theCodeofPracticefortheGovernanceofStateBodies,issuedbytheDepartmentofFinance,andtothe

relevantmainandsupportingprinciplesofgoodgovernanceoutlinedinthe2003CombinedCodeissuedby

theUnitedKingdom’sFinancialReportingCouncil.

ThedirectorsconfirmthattheGrouphasbeenincompliancewiththeCodeofPracticefortheGovernance

ofStateBodiesandtherelevantmainandsupportingprinciplesofthe2003CombinedCodethroughoutthe

financialyearunderreview,withtheexceptionofanumberofareasnotedabovewherevoluntarycompliance

withprovisionsofthe2003CombinedCodeisnot,giventhemannerofappointmentofdirectors,thelegal

andshareholdingstructureoftheCompanyandexistingBoardprocedures,consideredappropriate.

Going Concern

ThedirectorshavereviewedtheGroup’sbusinessplanandotherrelevantinformationandhaveareasonable

expectationthattheGroupwillcontinueinoperationalexistencefortheforeseeablefuture.Forthisreason,

thedirectorscontinuetoadoptthegoingconcernbasisinpreparingthefinancialstatements.

OnbehalfoftheBoard

MargaretMcGinley

Chairperson

DonalConnell

Director

22March,2007


UndertheEuropeanCommunities(PostalServices)Regulations,2002(‘theRegulations’),theCommissionfor

CommunicationsRegulation,(ComReg),wasdesignatedasthenationalregulatoryauthorityforthepostalsector

andAnPostwasdesignatedasaUniversalServiceprovider.

UnderthoseRegulations,theaccountingproceduresofAnPostarerequiredtobeconductedinaccordance

withdirectionslaiddownbyComRegandwithcertainprovisionsintheRegulations.On20September,200�,

ComRegissuedadirectiontoAnPostsettingouttheregulator’sdetailedrequirementsinrelationtothe

accountingsystemsofAnPost(‘theDirection’).ComRegissuedanewaccountingdirectiontoAnPoston8

December,2006thatappliestoaccountingperiodsbeginningonorafter�January,2007.

ThedirectorsacknowledgetheirresponsibilityforcompliancewiththeaccountingprovisionsoftheRegulations

andwiththeDirectionandthefollowingstatementdescribeshowAnPostappliedtherelevantprovisionsofthe

RegulationsandtheDirectionfortheaccountingyearbeginningon�January,2006.

Financial Records and Accounting Systems

ThefinancialrecordsandaccountingsystemsmaintainedbyAnPostcontainsufficientdetailasrequiredbythe

DirectiontoenablemanagementtoensurethattheycomplywiththeaccountingprovisionsoftheRegulations.

Separateaccountsaremaintainedforeachoftheserviceswithinthereservedandnon-reservedsectors.

Separated Accounts

SegmentalprofitandlossaccountsandstatementsofnetassetsarebeingpreparedforsubmissiontoComReg

fortheyearended3�December,2006withinthespecifieddeadlineof�9weeksfromtheendofthefinancial

year.

Management Accounting Manual

Adetailedaccountingmanualhasbeenpreparedshowingtherangeandscopeofdatatobecollectedforthe

purposeofcomplyingwiththeRegulationsandtheDirectionandthebasisonwhichthedataistobeallocated/

apportionedbetweenservices.ArevisedmanualwassubmittedtoComRegin2006.

Themanualreflectsthedetailedrevenuedeterminationandcostallocationandapportionmentprinciplesand

rulessetoutintheRegulationsandtheDirection.

Statement of Compliance

Basedontheabovestepsandactions,thedirectorsbelievethatAnPosthascompliedwiththerelevant

provisionsoftheRegulationsandwiththeDirectionofComReginrelationtotheAccountingSystemsofAn

Postfortheyearended3�December,2006.

OnbehalfoftheBoard

MargaretMcGinleyChairperson

DonalConnellDirector

22March,2007

StatementoftheDirectorsoncompliancewiththeEuropeanCommunities(PostalServices)Regulations2002concerningcostaccountingsystemsandwiththeRegulator’sDirectionontheAccountingSystemsofAnPost


ThedirectorsareresponsibleforpreparingtheAnnualReportandfinancialstatements,inaccordancewith

applicablelawandregulations.

CompanylawrequiresthedirectorstoprepareGroupandparentCompanyfinancialstatementsforeach

financialyear.UnderthatlawthedirectorshaveelectedtopreparetheGroupandparentCompanyfinancial

statementsinaccordancewithGenerallyAcceptedAccountingPracticeinIreland,comprisingapplicablelaw

andtheaccountingstandardsissuedbytheAccountingStandardsBoardandpromulgatedbytheInstituteof

CharteredAccountantsinIreland.

TheGroupandparentCompanyfinancialstatementsarerequiredbylawtogiveatrueandfairviewofthe

stateofaffairsoftheGroupandtheparentCompanyandoftheprofitorlossoftheGroupforthatperiod.

InpreparingeachoftheGroupandparentCompanyfinancialstatements,thedirectorsarerequiredto:

• selectsuitableaccountingpoliciesandthenapplythemconsistently;

• makejudgementsandestimatesthatarereasonableandprudent;and

• preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethatthe

Groupwillcontinueinbusiness.

Thedirectorsareresponsibleforkeepingproperbooksofaccountwhichdisclosewithreasonableaccuracy

atanytimethefinancialpositionoftheGroupandCompanyandtoenablethemtoensurethatthefinancial

statementscomplywiththeCompaniesActs,�963to2006.Theyarealsoresponsiblefortakingsuchstepsas

arereasonablyopentothemtosafeguardtheassetsoftheGroupandtopreventanddetectfraudandother

irregularities.

ThedirectorsarealsoresponsibleforpreparingaDirectors’Reportthatcomplieswiththerequirementsofthe

CompaniesActs,�963to2006.

Thedirectorsareresponsibleforthemaintenanceandintegrityofthecorporateandfinancialinformation

includedontheCompany’swebsite.LegislationintheRepublicofIrelandgoverningthepreparationand

disseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.

OnbehalfoftheBoard

MargaretMcGinley

Chairperson

DonalConnell

Director

22March,2007

StatementofDirectors’Responsibilities


WehaveauditedtheGroupandparentCompanyfinancialstatements(the‘financialstatements’)ofAn

Postfortheyearended3�December,2006whichcomprisetheConsolidatedProfitandLossAccount,

theConsolidatedandCompanyBalanceSheets,theConsolidatedCashFlowStatement,theConsolidated

StatementofTotalRecognisedGainsandLossesandtherelatednotes.Thesefinancialstatementshavebeen

preparedundertheaccountingpoliciestherein.

ThisreportismadesolelytotheCompany’smembers,asabody,inaccordancewithSection�93ofthe

CompaniesAct,�990.OurauditworkhasbeenundertakensothatwemightstatetotheCompany’smembers

thosematterswearerequiredtostatetotheminanauditors’reportandfornootherpurpose.Tothefullest

extentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandthe

Company’smembersasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.

Respective Responsibilities of Directors and Auditor

ThedirectorsresponsibilitiesforpreparingtheAnnualReportandthefinancialstatementsinaccordancewith

applicablelawandtheaccountingstandardsissuedbytheAccountingStandardsBoardandpromulgatedby

theInstituteofCharteredAccountantsinIreland(GenerallyAcceptedAccountingPracticeinIreland),areset

outintheStatementofDirectors’Responsibilitiesonpage4�.

Ourresponsibilityistoauditthefinancialstatementsinaccordancewithrelevantlegalandregulatory

requirementsandInternationalStandardsonAuditing(UKandIreland).

Wereporttoyououropinionastowhetherthefinancialstatementsgiveatrueandfairviewinaccordance

withGenerallyAcceptedAccountingPracticeinIrelandandareproperlypreparedinaccordancewiththe

CompaniesActs,�963to2006,andtheEuropeanCommunities(Companies:GroupAccounts)Regulations,

�992.Wealsoreporttoyouwhetherinouropinion:properbooksofaccounthavebeenkeptbythe

company;whetheratthebalancesheetdate,thereexistsafinancialsituationrequiringtheconveningof

anextraordinarygeneralmeetingofthecompany;andwhetherinouropiniontheinformationgiveninthe

Directors’Reportisconsistentwiththefinancialstatements.Inaddition,westatewhetherwehaveobtained

alltheinformationandexplanationsnecessaryforthepurposesofouraudit,andwhetherthecompany’s

financialstatementsareinagreementwiththebooksofaccount.

Wealsoreporttoyouif,inouropinion,informationspecifiedbylawregardingdirectors’remunerationand

transactionswiththeGroupisnotdisclosed.

Wereview,attherequestofthedirectors,whether(�)thevoluntaryCorporateGovernancestatementon

pages32to39reflectstheGroup’scompliancewiththenineprovisionsofthe2003FRCCombinedCode

thattheListingRulesoftheIrishStockExchangespecifiesforreviewbyauditorsand(2)thestatementonthe

systemofinternalcontrolonpages34and35reflectsthegroup’scompliancewiththeprovisionofTheCode

ofBestPracticefortheGovernanceofStateBodiesthatisspecifiedforreviewbyauditorsandwereportif

thosestatementsdonot.WearenotrequiredtoconsiderwhethertheBoard’sstatementsoninternalcontrol

coverallrisksandcontrols,orformanopinionontheeffectivenessoftheGroup’scorporategovernance

proceduresoritsriskandcontrolprocedures.

ReportoftheIndependentAuditortotheMembersofAnPost


WereadtheotherinformationcontainedintheAnnualReportandconsiderwhetheritisconsistentwiththe

auditedfinancialstatements.ThisotherinformationcomprisesonlytheDirectors’Report,theChairperson’s

Statement,theChiefExecutive’sReview,theFinancialReview,theCorporateGovernanceStatementandthe

FiveYearFinancialSummary.Weconsidertheimplicationsforourreportifwebecomeawareofanyapparent

misstatementsormaterialinconsistencieswiththefinancialstatements.Ourresponsibilitiesdonotextendto

anyotherinformation.

Basis of Opinion

WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UKandIreland)issued

bytheAuditingPracticesBoard.Anauditincludesexamination,onatestbasis,ofevidencerelevanttothe

amountsanddisclosuresinthefinancialstatements.Italsoincludesanassessmentofthesignificantestimates

andjudgementsmadebythedirectorsinthepreparationofthefinancialstatementsandofwhetherthe

accountingpoliciesareappropriatetotheGroup’scircumstances,consistentlyappliedandadequately

disclosed.

Weplannedandperformedourauditsoastoobtainalltheinformationandexplanationswhichwe

considerednecessaryinordertoprovideuswithsufficientevidencetogivereasonableassurancethatthe

financialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorotherirregularityor

error.Informingouropinionwealsoevaluatedtheoveralladequacyofthepresentationofinformationinthe

financialstatements.

Opinion

Inouropinion,thefinancialstatements:

• giveatrueandfairview,inaccordancewithGenerallyAcceptedAccountingPracticeinIreland,ofthe

stateofaffairsoftheGroupandtheCompanyat3�December,2006andoftheprofitoftheGroupfor

theyearthenended;and

• havebeenproperlypreparedinaccordancewiththeCompaniesActs,�963to2006andtheEuropean

Communities(Companies:GroupAccounts)Regulations,�992.

Wehaveobtainedalltheinformationandexplanationsweconsiderednecessaryforthepurposesofouraudit.

Inouropinion,properreturnsadequateforouraudithavebeenreceivedfrombranchesoftheCompanynot

visitedbyus.Inouropinion,properbooksofaccounthavebeenkeptbytheCompanyandthebalancesheet

oftheCompanyat3�December,2006isinagreementtherewith.

Inouropinion,theinformationgiveninthereportofthedirectorsonpages28to3�isconsistentwiththe

financialstatements.


ThenetassetsoftheCompany,asstatedinthebalancesheetonpage53aremorethanhalfoftheamount

ofitscalledupsharecapitaland,inouropinion,onthatbasistheredidnotexistat3�December,2006a

financialsituationwhichunderSection40(�)oftheCompanies(Amendment)Act�983wouldrequirethe

conveningofanextraordinarygeneralmeetingoftheCompany.


Registered Auditor

�StokesPlace

St.Stephen’sGreen

Dublin2

22March,2007

ReportoftheIndependentAuditortotheMembersofAnPostcontinued


Inadditiontoourauditofthefinancialstatements,wehavereviewedthedirectors’statementonpage40

concerningtheCompany’scompliance,fortheyearended3�December,2006,withtheaccountingprovisions

oftheRegulationsandwiththedirectiontoAnPostsettingouttheRegulator’sdetailedrequirementsin

relationtotheaccountingsystemsofAnPost(theDirection),issuedon20September,200�bythepostal

servicesregulator,ComReg,inrelationtotheaccountingsystemsofAnPost.

Respective Responsibilities of Directors and Auditor

ThedirectorsprepareanannualstatementofcompliancewiththeaccountingprovisionsoftheRegulation

andtheDirectionforwhichtheyareresponsible.Theobjectiveofourreviewistodrawattentiontonon-

compliancewiththerequirementsoftheaccountingprovisionsoftheRegulationsandwiththeDirection.

Ourreviewdoesnotconstituteanauditoftheseparatedaccounts.

Basis of Opinion

WecarriedoutourreviewinaccordancewiththegeneralprinciplesandguidanceoftheAuditingPractices

Board.

Opinion

BasedonenquiryofcertaindirectorsandofficersoftheCompanyandexaminationofrelevantdocuments,in

ouropinion,thedirectors’statementonpage40appropriatelyreflectstheCompany’scompliance,fortheyear

ended3�December,2006,withtheaccountingprovisionsoftheRegulationsandwiththeDirectiononthe

AccountingSystemsofAnPost,dated20September,200�issuedbyComReg.


�StokesPlace

StStephen’sGreen

Dublin2

22March,2007

ReportoftheIndependentAuditortoAnPostoncompliancewiththeEuropeanCommunities(PostalServices)Regulations2002(theRegulations)concerningcostaccountingsystemsandwiththeRegulator’sDirection


Thefollowingaccountingpolicieshavebeenappliedconsistentlyindealingwithitemswhichareconsidered

materialinrelationtotheGroup’sfinancialstatements.

1. Basis of Preparation

Thefinancialstatementsarepreparedunderthehistoricalcostconventionandinaccordancewith

applicablelawandIrishGenerallyAcceptedAccountingPracticewhichincludescompliancewiththe

financialreportingstandardsoftheAccountingStandardsBoardpromulgatedinIrelandbyTheInstituteof

CharteredAccountantsinIreland.

2. Basis of Consolidation

TheconsolidatedfinancialstatementsincludethefinancialstatementsoftheCompanyanditssubsidiary

undertakings(exceptAnPostNationalLotteryCompany)madeuptotheendofthefinancialyear.The

resultsofsubsidiaryundertakingsacquiredordisposedofduringtheyearareincludedintheconsolidated

profitandlossaccountfromthedateofacquisitionoruptodateofdisposal.Upontheacquisitionofa

business,fairvaluesareattributedtotheidentifiablenetassetsacquired.Goodwillarisingonacquisitions

isdealtwithassetoutbelow.

Ifthefinancialyearofasubsidiaryundertakingendsatadatemorethanthreemonthsbeforethatofthe

parentCompany,theGroupfinancialstatementsconsolidateinterimfinancialstatementspreparedbythe

subsidiaryattheendoftheparent’sfinancialyear.

ThesoleactivityofAnPostNationalLotteryCompanyistheoperationoftheNationalLotteryunder

licencefromtheMinisterforFinanceinaccordancewiththeprovisionsoftheNationalLotteryAct,�986

andthesurplusgeneratedeachyearisentirelyattributabletotheNationalLotteryFundwhichismanaged

andcontrolledbytheMinister.Accordingly,AnPostdoesnotparticipateinthesurplusgeneratedby

AnPostNationalLotteryCompanyandneitherisitentitledtoexerciseanyrightsovertheassetsof

thatcompany.Onthisbasis,inaccordancewiththeprovisionsofFinancialReportingStandardNo.2

‘AccountingforSubsidiaryUndertakings’andtheEuropeanCommunities(Companies:GroupAccounts)

Regulations,�992,theconsolidatedfinancialstatementsdonotincorporatethefinancialstatementsof

AnPostNationalLotteryCompany.SeparatefinancialstatementsofAnPostNationalLotteryCompany

werepublishedon8March,2007.

Jointventureundertakings(jointventures)arethoseundertakingsoverwhichtheGroupexercisescontrol

jointlywithanotherparty.

Associatedundertakings(associates)arethoseundertakingsinwhichtheGrouphasaparticipating

interestintheequitycapitalandoverwhichitisabletoexercisesignificantinfluence.

Jointventuresandassociatesareaccountedforusingthegrossequitymethodandequitymethod

respectively.TheGroup’sshareoftheprofitslesslossesofjointventuresandassociatesareincludedinthe

consolidatedprofitandlossaccount.TheGroup’sinterestsintheirnetassetsorliabilitiesareincludedas

fixedassetinvestmentsintheconsolidatedbalancesheetatanamountrepresentingtheGroup’sshareof

thefairvaluesofthenetassetsatacquisitionplustheGroup’sshareofpostacquisitionretainedprofitsor

losses.

AccountingPolicies


3. Turnover

Turnoverisrecognisedasservicesareprovidedandconsistofincomefrompostage,agencyservices,

poundagefromremittanceservices,courierandlogisticservices,consultancyservices,financialservices,

rentsandinterestincome.IncomefromagencyservicesisinrespectofservicesperformedforGovernment

Departments,theNationalTreasuryManagementAgency,AnPostNationalLotteryCompanyandother

bodies.Amountsheldintheperformanceoftheseagencyservicesareincludedinamountsheldintrustin

cashatbankandathand.

Postageincomeisrecognisedintheprofitandlossaccountassalesaremadewithanadjustmentfor

stampssoldandunusedandbalancesinpostagemetermachinesunusedattheyearend.

4. Saving Services

TheCompanyoperates,onanagencybasisandforanagreedremuneration,thePostOfficeSavingsBank

andothersavingsservicesfortheNationalTreasuryManagementAgency,whichactsonbehalfofthe

MinisterforFinance.

ThefundsareremittedregularlytotheNationalTreasuryManagementAgency.Theassetsandliabilitiesof

suchsavingsservicesvestintheMinisterforFinanceand,accordingly,arenotincludedinthesefinancial

statements.

5. Grants

Revenuebasedgrantsarecreditedtotheprofitandlossaccounttooffsetthematchingexpenditure.

CapitalgrantsreceivedandreceivableunderEUassistedschemesarerecognisedwhenreceivedorwhen

theirreceiptcanbeforeseenwithvirtualcertainty.

Capitalgrantsaretreatedasdeferredincomeandamortisedtotheprofitandlossaccountonabasis

consistentwiththedepreciationpolicyoftherelatedtangiblefixedassets.

6. Tangible Fixed Assets

Tangiblefixedassetsarestatedatcostlessaccumulateddepreciation.

Certainsecurityequipmentinsub-postofficesandfurnitureandfittings,togetherwithotherminoritems,

arechargedtotheprofitandlossaccountintheyearinwhichtheexpenditureisincurred.Allother

purchasesoftangiblefixedassetsarecapitalised.

Freeholdandlongleaseholdlandisnotdepreciated.Depreciationonothertangiblefixedassetsischarged

totheprofitandlossaccountonastraightlinebasissoastowriteoffthoseassets,adjustedforestimated

residualvalue,overtheexpectedusefullifeofeachcategory.Theremainingusefullivesoftheassetsand

theirresidualvaluesarereviewedonaregularbasis.


6. Tangible Fixed Assets (continued)

Depreciationisprovidedonadditionswitheffectfromthefirstdayofthemonthfollowingcommissioning

andondisposalsuptotheendofthemonthofretirement.

Theestimatedusefullivesareasfollows:

Years

Freehold&longleaseholdbuildings 20-50

InterestinGPO 50

Motorvehicles 5

Computer&otherequipment 3-�0

7. Operating Leases

Operatingleaserentalsarechargedtotheprofitandlossaccountonastraightlinebasisoverthelease

term.

8. Goodwill

Goodwillarisingonacquisitions,representingtheexcessofthepurchasepriceoverthefairvalueofthe

netidentifiableassetsorliabilitiesacquired,iscapitalisedandamortisedtotheprofitandlossaccounton

astraightlinebasisoveritsexpectedusefullifeoftenyears.Thecarryingvalueofgoodwillisreviewed

annuallyandprovisionismadeforanyimpairmentinvalue.Ondisposalofabusiness,anygoodwillis

includedindeterminingtheprofitorlossonsaleofthebusiness.

9. Taxation

Currenttax,includingIrishcorporationtaxandforeigntax(es),isprovidedontheGroup’staxableprofits,

atamountsexpectedtobepaid(orrecovered)usingthetaxratesandlawsthathavebeenenactedor

substantiallyenactedbythebalancesheetdate.

Deferredtaxisrecognisedinrespectofalltimingdifferencesthathaveoriginatedbutnotreversedatthe

balancesheetdate.Provisionismadeattheratesexpectedtoapplywhenthetimingdifferencesreverse.

TimingdifferencesaredifferencesbetweentheGroup’staxableprofitsanditsresultsasstatedinthe

financialstatementsthatarisefromtheinclusionofgainsandlossesintaxableprofitsinperiodsdifferent

fromthoseinwhichtheyarerecognisedinthefinancialstatements.

Anetdeferredtaxassetisregardedasrecoverableandthereforerecognisedonlywhen,onthebasisof

allavailableevidence,itcanberegardedasmorelikelythannotthattherewillbesuitabletaxableprofits

fromwhichthefuturereversaloftheunderlyingtimingdifferencescanbededucted.

Deferredtaxisrecognisedinrespectoftheretainedearningsofoverseassubsidiaries,jointventuresand

associatesonlytotheextentthat,atthebalancesheetdate,dividendshavebeenaccruedorreceivable

orabindingagreementtodistributepastearningsinfuturehasbeenenteredintobythesubsidiary,joint

ventureorassociate.

AccountingPoliciescontinued


10. Pensions

TheGroupprovidespensionstoitsemployeesunderdefinedbenefitsuperannuationschemesand

adefinedcontributionscheme.Italsoprovidesretirementgratuitiesundernormalcircumstancesto

postmastersengagedasagentsandtocertainnon-pensionableemployees.

Inrelationtothedefinedcontributionscheme,contributionsareaccruedandrecognisedinoperating

profitorlossintheperiodinwhichtheyareearnedbytherelevantemployees.

Forthedefinedbenefitschemes,thedifferencebetweenthemarketvalueoftheschemes’assetsand

theactuariallyassessedpresentvalueoftheschemes’liabilities,calculatedusingtheprojectedunitcredit

method,isdisclosedasanasset/liabilityonthebalancesheet,netofdeferredtax(totheextentthatitis

recoverable).

Theamountchargedtooperatingprofitistheactuariallydeterminedcostofpensionbenefitspromisedto

employeesearnedduringtheyearplusanybenefitimprovementsgrantedtomembersduringtheyear.

Theexpectedreturnonthepensionscheme’sassetsduringtheyearandtheincreaseinthescheme’s

liabilitiesduetotheunwindingofthediscountduringtheyearareshownasfinancingcostsintheprofit

andlossaccount.

Anydifferencebetweentheexpectedreturnonassetsandthatactuallyachievedandanychangestothe

liabilitiesduetochangesinassumptionsorbecauseactualexperienceduringtheyearwasdifferentto

thatassumed,arerecognisedasactuarialgainsandlossesinthestatementoftotalrecognisedgainsand

losses.

Inrelationtotheunfundedliabilityforretirementgratuities,theactuariallydeterminedpresentvalueof

theliabilityisrecordedinfullinthebalancesheetanditisincreasedforthecostofadditionalbenefits

earnedduringtheyearwhichischargedtooperatingprofit.Theunwindingofthediscountontheliability

isshownasafinancingcostintheprofitandlossaccount.Changestotheliabilityasaresultofchanges

inmeasurementassumptionsorbecauseactualexperienceisdifferenttothatassumedareconsideredto

beanactuarialgainorlossandareincludedinthestatementoftotalrecognisedgainsandlosses.

11. Foreign Currencies

Transactionsdenominatedinforeigncurrenciesaretranslatedintoeuroandrecordedattheratesof

exchangerulingatthedatesofthetransactions.Monetaryassetsandliabilitiesdenominatedinforeign

currenciesaretranslatedintoeuroattheratesofexchangerulingatthebalancesheetdateoratforward

purchasecontractrateswheresuchcontractsexist.Allsuchexchangedifferencesaredealtwithinthe

profitandlossaccount.

Resultsofoverseassubsidiariesaretranslatedintoeuroattheaverageexchangeratefortheperiod.The

assetsandliabilitiesofoverseassubsidiariesaretranslatedintoeuroatratesofexchangerulingatthe

balancesheetdate.Translationdifferencesarereportedasamovementonreserves.


Notes2006

€’000

Exceptional2006

€’000

Total2006

€’0002005

€’000

Turnover–continuingoperations 2 818,827 - 818,827 752,887

Operatingcosts 3 (804,162) (20,040) (824,202) (736,690)

Operatingprofit/(loss)–continuingoperations 14,665 (20,040) (5,375) �6,�97

Exceptionalitems–continuingoperations

–Netprofitonsaleofassets 4 94,700 59,323

–Financialservicesjointventuresetupcosts 4 (13,883) -

–Costoffundamentalrestructuring 4 - (40,000)

Otherfinanceincome(net) �8 21,123 5,39�

Profitonordinaryactivitiesbeforetaxation 5 96,565 40,9��

Taxonprofitonordinaryactivities 6 (20,900) (20�)

Profitforthefinancialyear 7/20 75,665 40,7�0

OnbehalfoftheBoard

MargaretMcGinley

Chairperson

DonalConnell

Director

ConsolidatedProfitandLossAccountfortheyearended3�December,2006


Notes 2006€’000

2005€’000

Profitforthefinancialyear 75,665 40,7�0

Actuarialgain/(loss)onpostemploymentplansrecognised �8 118,179 (�,786)

Totalrecognisedgainsandlosses 193,844 38,924

ConsolidatedStatementofTotalRecognisedGainsandLossesfortheyearended3�December,2006


Notes 2006€’000

2005€’000

FixedAssets

Intangibleassets–goodwill 9 7,935 �2,�38

Tangibleassets �0 188,262 204,�37

Financialassets �� - -

196,197 2�6,275

CurrentAssets

Debtors �2 89,446 79,434

Cashatbankandinhand �3 295,049 �85,344

384,495 264,778

Creditors:Amountsfallingduewithinoneyear �4 (179,461) (�48,875)

NetCurrentAssets 205,034 ��5,903

TotalAssetslessCurrentLiabilities 401,231 332,�78

Creditors:Amountsfallingdueaftermorethanoneyear �6 (3,971) (4,073)

ProvisionsforLiabilities �7 (78,702) (88,847)

NetAssetsexcludingPensionLiability 318,558 239,258

PensionLiability �8 (193,226) (307,770)

NetAssets/(Liabilities)includingPensionLiability 125,332 (68,5�2)

CapitalandReserves

Calledupsharecapital �9 68,239 68,239

Capitalconversionreservefund �9 877 877

Profitandlossaccount 20 56,216 (�37,628)

Shareholders’Funds/(Deficit) 2� 125,332 (68,5�2)

OnbehalfoftheBoard

MargaretMcGinley

Chairperson

DonalConnell

Director

ConsolidatedBalanceSheetat3�December,2006


Notes 2006€’000

2005€’000

FixedAssets

Tangibleassets �0 170,934 �86,046

Financialassets �� 11,431 �3,53�

182,365 �99,577

CurrentAssets

Debtors �2 90,572 83,�87

Cashatbankandinhand �3 269,527 �65,057

360,099 248,244

Creditors:Amountsfallingduewithinoneyear �4 (221,021) (�89,4��)

NetCurrentAssets 139,078 58,833

TotalAssetslessCurrentLiabilities 321,443 258,4�0

Creditors:Amountsfallingdueaftermorethanoneyear �6 (2,912) (2,985)

ProvisionsforLiabilities �7 (78,702) (88,847)

NetAssetsexcludingPensionLiability 239,829 �66,578

PensionLiability �8 (193,226) (307,770)

NetAssets/(Liabilities)includingPensionLiability 46,603 (�4�,�92)

CapitalandReserves

Calledupsharecapital �9 68,239 68,239

Capitalconversionreservefund �9 877 877

Profitandlossaccount 20 (22,513) (2�0,308)

Shareholders’Funds/(Deficit) 2� 46,603 (�4�,�92)

OnbehalfoftheBoard

MargaretMcGinley

Chairperson

DonalConnell

Director

CompanyBalanceSheetat3�December,2006


Notes 2006€’000

2005€’000

Netcashinflowfromoperatingactivities(below) 37,082 40,888

Returnsoninvestmentsandservicingoffinance 22 (5) (56)

Taxation 22 (17,001) �32

Capitalexpenditureandfinancialinvestment 22 93,002 (9,242)

Acquisitionsanddisposals 22 (3,373) 75,957

Cashinflowbeforeuseofliquidresources 109,705 �07,679

Managementofliquidresources 22 (60,029) (84,442)

Increaseincashintheyear 49,676 23,237

Reconciliationofoperatingprofitbeforeexceptionalitemtonetcashinflowfromoperatingactivities

2006€’000

2005€’000

Operatingprofitbeforeexceptionalitem 14,665 �6,�97

Retrospectivepayawards (20,040) -

Depreciation 21,630 27,067

Profitonsaleoftangiblefixedassetsotherthanlandandbuildings (145) (�85)

Movementinprovisionforbusinessrestructuring (10,145) (20,8�5)

Noncashpensioncost 24,758 �2,840

Capitalgrantsamortised (102) (�02)

Financialservicesjointventuresetupcosts (7,322) (4,56�)

Goodwillamortised/impaired 4,203 2,263

Interestpayable 5 56

(Increase)inoperatingdebtors (13,023) (6,��2)

Increaseinoperatingcreditors 22,598 �4,240

Netcashinflowfromoperatingactivities 37,082 40,888

Reconciliationofnetcashflowtomovementinnetfunds

Notes 2006€’000

2005€’000

Increaseincashintheyear 23 49,676 23,237

Cashinflowfromchangeinliquidresources 23 60,029 84,442

Changeinnetfundsresultingfromcashflows 23 109,705 �07,679

Cashinsubsidiariessold 23 - (��,750)

Netfundsatbeginningofyear 23 185,344 89,4�5

Netfundsatendofyear 23 295,049 �85,344

ConsolidatedCashFlowStatementfortheyearended3�December,2006


1. Status of Company

TheCompanyisalimitedliabilitycompany,incorporatedundertheCompaniesActs,�963to2006.Under

thePostalandTelecommunicationsServicesAct,�983,theCompanyisentitledtoomittheword‘Limited’

fromitsname.

2. Turnover

2006€’000

2005€’000

Theanalysisofturnoverisasfollows:

RepublicofIreland

Postage:Lettersandparcels 594,309 543,4��

Postage:Electionsandreferendum - 69�

Postoffices:Agency,remittanceandotherservices 144,230 �35,963

Otherservices 44,848 44,�4�

Interestincome 9,548 5,259

792,935 729,465

UnitedKingdomandOtherEuropean

Otherservices 25,892 23,422

818,827 752,887

Intheopinionofthedirectors,fullercompliancewiththedisclosurerequirementsofSSAP25‘Segmental

Reporting’wouldbeseriouslyprejudicialtotheGroup’sinterests.

3. Operating Costs

2006€’000

2005€’000

Staffandpostmasters’costsbeforeexceptionalitem 558,080 5�4,�05

Exceptionalitem–retrospectivepayawards(note4) 20,040 -

Total(note8) 578,120 5�4,�05

Othercosts:

Distribution 73,044 62,647

Accommodation 31,477 24,648

Operational 77,179 72,32�

Administration 38,549 33,639

Depreciation,amortisation&impairmentofgoodwill 25,833 29,330

824,202 736,690

NotestotheFinancialStatementsfortheyearended3�December,2006


4. Exceptional Items

2006€’000

2005€’000

Retrospectivepayawards 20,040 -

Profitonsaleofsubsidiaries 1,177 59,323

Profitonsaleoffixedassets 93,523 -

Profitonsaleofassets 94,700 59,323

Financialservicesjointventuresetupcosts (13,883) -

Costoffundamentalrestructuring - (40,000)

RetrospectivePayAwards

InOctober2006,theCompanydecidedtopaytheretrospectionofcertainpayawardsduetostaff,

paymentofwhichtheLabourCourthadrecommendedwascontingentontheCompanyreturningto

reasonableandsustainableprofitandasitsfinancialandcommercialcircumstancespermit.Theamount

oftheseretrospectionpaymentsincludedintheoperatingresultfortheyearwas€20,040,000.

Profitonsaleofsubsidiaries

On�5March,2005,theGroupsolditssubsidiariesPostTSUK.LimitedandAnPostTransactionServices

S.A.foraconsiderationof€82,700,000netoftransactioncostsresultinginaprofitof€59,323,000.

Afurtheramountof€�,�77,000netofrelatedfeeswasreceivedfollowingtheresolutionofcontract

warrantyissues.Thisamountwasrecognisedduringtheyearended3�December,2006.

Profitonsaleoffixedassets

Duringtheyear,theGroupdisposedoftheformerparcelsdepotontheNaasRoad,Dublinfora

considerationof€�07,000,000resultinginaprofitbeforetaxof€93,523,000.CapitalGainsTaxof

€�6,800,000waspaidduringtheyearinrespectofthisdisposal.

FinancialServicesjointventuresetupcosts

InOctober2006,theCompanyenteredintoanagreementwithFortistoestablishajointventure

companytoprovidebankingservicestotheIrishmarket.Thedirectorsconsiderthistobeafundamental

restructuringoftheCompany’sbusiness.Underthetermsoftheagreement,AnPost’scontributionwill

compriseitsPostpointandAnPostDirectLimitedbusinesseswhencertainconditionshavebeenmet.The

jointventureisexpectedtobeestablishedin2007.

CostsincurredbyAnPostinrelationtotheprocessofidentifyingandselectingajointventurepartner,

subsequentnegotiationsandsigningoftheagreementamountedto€�3,883,000.

NotestotheFinancialStatementscontinued


5. Profit on Ordinary Activities Before Taxation

2006€’000

2005€’000

Theprofitonordinaryactivitiesbeforetaxationisstatedaftercharging:

Directors’emoluments

Fees 278 2�3

Otheremoluments 396 338

Pensioncontributions 69 65

Auditors’remuneration–audit 300 287

Depreciation 21,630 27,067

Amortisation/impairmentofgoodwill 4,203 2,263

Operatingleaserentals:

Rentalofbuildings 7,312 7,442

Other–equipmentandmotorvehicles 4,853 3,363

Interestpayableonbankfacilitiesrepayablewithinoneyearandsimilarcharges 5 56

andaftercrediting:

Capitalgrantsamortised 102 �02

Theamountsshownaboveasdirectorsemolumentsincludeonlytheamountspaidtothedirectorsinthe

executionoftheirdutiesasdirectorsandthesalaryoftheChiefExecutivewhoisalsoadirector.Other

thanthis,theydonotincludethesalariesoftheemployeeandpostmasterdirectors.

TheremunerationpackageofMrDonalCurtinwhoretiredasChiefExecutiveOfficeron�3July,2006

whichisincludedintheamountsshownaboveasdirectors’emoluments,wasasfollows:

2006€’000

2005€’000

Director’sfee 9 �3

Basicsalary 170 26�

Non-pensionableperformancerelatedpay 58 64

Taxablebenefits,includinguseofacompanycar 10 �3

247 35�

Pensioncontributions 43 65

290 4�6


5. Profit on Ordinary Activities Before Taxation (continued)

TheremunerationpackageofMrDonalConnellwhowasappointedChiefExecutiveOfficeron�4

August,2006whichisincludedintheamountsshownaboveasdirectors’emoluments,wasasfollows:

2006€’000

2005€’000

Director’sfee 7 -

Basicsalary 130 -

Non-pensionableperformancerelatedpay 21 -

Taxablebenefits,includinguseofacompanycar 7 -

165 -

Pensioncontributions 26 -

191 -

6. Tax on Profit on Ordinary Activities

2006€’000

2005€’000

Currenttax

Ireland–Capitalgainstax 16,800 -

Ireland–Corporationtax 3,551 -

UK–Corporationtax 549 20�

20,900 20�



6. Tax on Profit on Ordinary Activities (continued)

ThecurrenttaxchargeislowerthanthestandardrateofcorporationtaxinIreland.

Thedifferencesareexplainedbelow:

2006€’000

2005€’000

Profitonordinaryactivitiesbeforetax 96,565 40,9��

Currenttaxof�2.5%(2005:�2.5%) 12,071 5,��4

Effects of:

Expensesnotdeductible 573 360

Depreciationinexcessofcapitalallowances 562 (883)

Manufacturingcorporationtaxrelief - (�6)

Incometaxedathigherrates 1,645 9�8

Utilisationoftaxlosses (1,055) (�,266)

Taxlossesnotutilised - 6,229

Profitonassetsalestaxedathigherrate 5,110 -

Exceptionalcostsnotdeductible 1,735 -

Profitonsaleofsubsidiariesnottaxable (324) (7,567)

Shorttermtimingdifferences 583 (2,688)

Currenttaxcharge 20,900 20�

Giventheuncertaintyovertheexistenceoffuturetaxableprofits,apotentialdeferredtaxassetof

€32,777,000(2005:€50,649,000)hasnotbeenrecognisedintheconsolidatedbalancesheetat

3�December,2006.Thisdeferredtaxassetnotrecognisedcomprisesadeferredtaxassetinrelationto

thenetpensiondeficitrecognisedof€24,�53,000(2005:€38,47�,000),timingdifferencesonbusiness

restructuring,€2,38�,000(2005:€2,38�,000),taxlossesforwardnotutilised,€�2,��4,000(2005:

€�3,245,000),offsetbytimingdifferencesof€5,87�,000(2005:€3,448,000).

7. Profit For The Financial Year

2006€’000

2005€’000

Profit/(loss)aftertaxintheholdingcompany 69,616 (25,979)

Profitaftertaxinsubsidiaryundertakings 6,049 66,689

75,665 40,7�0

AseparateprofitandlossaccountforAnPosthasnotbeenpreparedbecausetheconditionslaiddownin

Section3(2)oftheCompanies(Amendment)Act,�986havebeensatisfied.


8. Staff Numbers And Costs

2006 2005

TheaveragenumberofpersonsworkingintheGroupduringtheyearwasasfollows:

Headquarters 561 557

Savings/Remittanceservices 301 306

Inspection 37 4�

Postmen/postwomen 4,249 4,426

Postalsorters 1,280 �,238

Postofficeclerks 1,026 �,068

Othergrades 683 753

Temporary 1,379 �,�63

TotalAnPostemployees 9,516 9,552

Subsidiarycompanies 496 478

TotalGroupemployees 10,012 �0,030

Postmasters:Engagedasagents 1,300 �,349

2006 €’000

2005 €’000

Theaggregatepayrollcostsofthesepersonswereasfollows:

Wages,salariesandpostmasters’costs 477,917 430,708

Socialwelfarecosts 30,228 27,9�6

Otherpensioncosts(note�8) 69,975 55,48�

578,120 5�4,�05

InOctober2006,thecompanydecidedtopaytheretrospectionofcertainpayawardsduetostaff,

paymentofwhichtheLabourCourthadrecommendedwascontingentontheCompanyreturningto

reasonableandsustainableprofitandasitsfinancialandcommercialcircumstancespermit.Theamountof

theseretrospectionpaymentswhichareincludedabovein2006,were€20,040,000andincludepension

costsof€2,737,000.



9. Intangible Fixed Assets – Goodwill

Group

Total€’000

Cost

At3�December,2005and2006 22,44�

Amortisation

At3�December,2005 �0,303

Chargedduringtheyear 2,�03

Provisionforimpairment 2,�00

At3�December,2006 �4,506

NetBookValue

At31December,2006 7,935

At3�December,2005 �2,�38

Theprovisionforimpairmentofgoodwillreflectsanassessmentoftheunderlyingcarryingvalueof

goodwill.Adiscountrateofapproximately�5%hasbeenusedinthisregard.


10. Tangible Fixed Assets

Group Freehold&longleaseholdland

&buildings€’000

InterestinGPO€’000

Motorvehicles

€’000

Computer&other

equipment€’000

Total€’000

Cost

At3�December,2005 �8�,85� 26,�80 32,305 2�6,000 456,336

Additions 4,840 249 255 �3,586 �8,930

Disposals (�6,079) - (4,4�3) (4,548) (25,040)

Exchangedifferences - - - 29 29

At3�December,2006 �70,6�2 26,429 28,�47 225,067 450,255

AccumulatedDepreciation

At3�December,2005 34,970 8,�89 28,57� �80,469 252,�99

Chargedduringyear 3,664 655 2,029 �5,282 2�,630

Eliminatedondisposals (3,032) - (4,304) (4,5�7) (��,853)

Exchangedifferences - - - �7 �7

At3�December,2006 35,602 8,844 26,296 �9�,25� 26�,993

NetBookValue

At31December,2006 135,010 17,585 1,851 33,816 188,262

At3�December,2005 �46,88� �7,99� 3,734 35,53� 204,�37

Company Freehold&longleaseholdland

&buildings€’000

InterestinGPO€’000

Motorvehicles

€’000

Computer&other

equipment€’000

Total€’000

Cost

At3�December,2005 �6�,758 26,�80 32,230 204,�04 424,272

Additions 4,840 249 255 �2,586 �7,930

Disposals (�6,079) - (4,47�) (4,263) (24,8�3)

At3�December,2006 �50,5�9 26,429 28,0�4 2�2,427 4�7,389

AccumulatedDepreciation

At3�December,2005 30,092 8,�89 28,627 �7�,3�8 238,226

Chargedduringyear 3,276 655 �,995 �3,960 �9,886

Eliminatedondisposal (3,032) - (4,365) (4,260) (��,657)

At3�December,2006 30,336 8,844 26,257 �8�,0�8 246,455

NetBookValue

At31December,2006 120,183 17,585 1,757 31,409 170,934

At3�December,2005 �3�,666 �7,99� 3,603 32,786 �86,046

Group and Company

Thedepreciableelementoffreehold&longleaseholdland&buildingsamountsto:

Group€�44,983,000(2005:€�55,796,000),Company€�28,2�7,000(2005:€�39,023,000).



11. Financial Fixed Assets

Group Company

2006€

2005€

2006€

2005€

Sharesinsubsidiaryundertakings,atcost 102 �02 11,430,777 �3,530,777

Interestinjointventureandassociatedundertakings 163 �63 163 �63

265 265 11,430,940 �3,530,940

Themovementsduringtheyearwereasfollows:

Sharesinsubsidiaryundertakings

Atbeginningofyear 102 �02 13,530,777 �3,498,88�

Additions–deferredconsiderationpaid - - - 3�,896

Provisionforimpairment - - (2,100,000) -

Atendofyear 102 �02 11,430,777 �3,530,777

Intheopinionofthedirectors,thevalueofthefinancialfixedassets,noneofwhicharelisted,isnotless

thantheircarryingamount.

12. Debtors

Group Company

2006€’000

2005€’000

2006€’000

2005€’000

Amountsfallingduewithinoneyear

Tradedebtors 61,979 50,562 48,303 39,738

Amountsowedbysubsidiaryundertakingnotconsolidated 819 5�2 819 5�2

Amountsowedbyothersubsidiaryundertakings - - 710 �,099

Amountsowedbyassociatedundertaking 165 �98 165 �98

Otherdebtors 8,241 4,867 8,196 4,788

Prepaymentsandaccruedincome 18,242 23,295 16,158 20,886

89,446 79,434 74,351 67,22�

Amountsfallingdueaftermorethanoneyear

Amountsowedbysubsidiaryundertakings - - 16,221 �5,966

89,446 79,434 90,572 83,�87


13. Cash at Bank and in Hand

Group Company

2006 €’000

2005 €’000

2006€’000

2005€’000

Cashatbank 50,201 50,377 24,679 30,094

Cashinhand 193,966 �94,095 193,966 �94,09�

244,167 244,472 218,645 224,�85

Termdeposits 284,327 224,298 284,327 224,298

Less:Amountsheldintrust (233,445) (283,426) (233,445) (283,426)

295,049 �85,344 269,527 �65,057

14. Creditors: Amounts Falling Due Within One Year

Group Company

2006 €’000

2005 €’000

2006€’000

2005€’000

Tradecreditors 51,249 43,675 40,311 32,05�

Amountsowedtosubsidiaryundertakings - - 60,469 56,442

Othercreditors 4,304 4,462 3,846 3,945

Taxationandsocialwelfare(note�5) 15,855 �8,395 12,758 �7,2�5

Accruals 86,035 64,399 81,648 6�,843

Deferredincome–capitalgrants(note�6) 102 �02 73 73

Deferredpostageincome 21,916 �7,842 21,916 �7,842

179,461 �48,875 221,021 �89,4��

15. Taxation and Social Welfare

Group Company

2006 €’000

2005 €’000

2006€’000

2005€’000

Corporationtax 4,100 20� 2,300 -

IncometaxdeductedunderPAYE 7,428 9,846 7,186 9,66�

Payrelatedsocialinsurance 5,020 5,6�4 4,800 5,460

Valueaddedtax (1,232) 2,5�2 (2,068) �,872

Professionalserviceswithholdingtax 539 222 540 222

15,855 �8,395 12,758 �7,2�5



16. Creditors: Amounts Falling Due After More Than One Year

Group Company

2006 €’000

2005 €’000

2006€’000

2005€’000

Deferredincome–capitalgrants 3,971 4,073 2,912 2,985

Themovementsongrantswereasfollows:

Atbeginningofyear 4,175 4,277 3,058 3,�3�

Amortisedtoprofitandlossaccount (102) (�02) (73) (73)

Atendofyear 4,073 4,�75 2,985 3,058

Transferredtocreditors:amountsfallingduewithinoneyear (102) (�02) (73) (73)

3,971 4,073 2,912 2,985

17. Provisions for Liabilities

Group and Company

2006€’000

2005€’000

Businessrestructuring 78,702 88,847

Themovementsduringtheyearwereasfollows:

Total€’000

Atbeginningofyear 88,847

Utilisedduringtheyear (�0,�45)

Atendofyear 78,702

Theprovisionforbusinessrestructuringat3�December,2006includes€59,656,000(2005:

€69,80�,000)inrelationtobusinessrestructuringredundancycosts,and€�9,046,000(2005:

€�9,046,000)inrelationtotheintroductionofanEmployeeShareOwnershipPlan(ESOP).Business

restructuringisnowanticipatedtobecompletedby3�December,2009.


18. Pensions and Similar Obligations

Thepensionentitlementsofemployeesariseunderanumberofdefinedbenefitanddefinedcontribution

pensionschemes,theassetsofwhicharevestedinindependenttrusteesappointedbytheCompanyfor

thesolebenefitofemployeesandtheirdependents.Annualcontributionsarebasedontheadviceofa

professionallyqualifiedactuary.

Theamountschargedduringtheyeartooperatingcostswereasfollows:

2006€’000

2005€’000

Definedbenefitschemes–currentservicecost 68,435 54,000

Unfundedretirementbenefits–currentservicecost 968 850

Definedcontributionscheme 572 63�

69,975 55,48�

Pastservicecostsof€4,306,000(2005:€nil)aroseduringtheyear.Theseweredischargedthroughthe

utilisationoftherestructuringprovision(note�7)andhadnoimpactontheprofitandlossaccountfor

theyearended3�December,2006.

Thepensioncostsofthedefinedbenefitschemesareassessedinaccordancewiththeadviceofan

independentprofessionallyqualifiedactuary.Themostrecentactuarialvaluationswerecarriedoutat�

January,2005usingtheattainedagemethodandaresufficienttocover99.9%oftheaccruedliabilities.

Theprincipalactuarialassumptionwasthat,overthelongterm,theannualrateofreturnoninvestments

wouldbe2.0%higherthantheannualincreaseinpensionableremuneration.Theactuarialvaluationof

�January,2005recommendedacontributionrateof�4.4%ofpensionableremuneration.Theactuarial

valuationsarenotavailableforpublicinspectionbuttheresultsofthevaluationshavebeenadvisedtothe

membersoftheschemes.

ThevaluationsofthepensionschemesusedforthepurposeofFRS�7disclosureshavebeenbased

onthemostrecentactuarialvaluationsasidentifiedaboveandupdatedbytheindependentactuaries

to3�December,2006.Schemeassetsarestatedattheirmarketvalueatthebalancesheetdate.



18. Pensions and Similar Obligations (continued)

ThefinancialassumptionsusedtocalculatetheretirementbenefitliabilitiesunderFRS�7wereasfollows:

2006 2005 2004

Valuationmethod ProjectedUnit ProjectedUnit ProjectedUnit

Discountrate 4.70% 4.25% 4.85%

Inflationrate 2.00% 2.00% 2.00%

Increasetopensionsinpayment 3.75% 3.75% 4.00%

Pensionablesalaryincreases 3.75% 3.75% 4.00%

Thelongtermexpectedratesofreturnontheassetsofthepensionschemewere:

2006 2005 2004

Equities 7.60% 7.�0% 7.30%

Bonds 4.20% 3.50% 3.80%

Other 5.10% 4.80% 4.30%

Themarketvalueoftheassetsofthedefinedbenefitschemesat3�December,2006,2005and2004

were:

2006€’000

2005€’000

2004€’000

Equities 1,477,000 �,326,000 �,039,000

Bonds 510,000 504,000 430,000

Other 166,000 �58,000 �77,000

Totalmarketvalueofpensionschemes’assets 2,153,000 �,988,000 �,646,000

Presentvalueofpensionsschemes’liabilities (2,333,000) (2,282,000) (�,932,000)

Netdeficitinfundedpensionschemes (180,000) (294,000) (286,000)



Movement in deficit during year

2006 2005

Schemes€’000

Unfunded€’000

Total€’000

Schemes€’000

Unfunded€’000

Total€’000

Deficitinschemesatbeginningofyear

(294,000) (13,770) (307,770) (286,000) (�2,535) (298,535)

Currentservicecost (68,435) (968) (69,403) (54,000) (850) (54,850)

Pastservicecost (4,306) - (4,306) - - -

Contributionspaid 47,688 1,263 48,951 4�,�99 8�� 42,0�0

Otherfinance(expense)/income

21,700 (577) 21,123 6,000 (609) 5,39�

Actuarialgain/(loss) 117,353 826 118,179 (�,�99) (587) (�,786)

Deficitinschemeatendofyear

(180,000) (13,226) (193,226) (294,000) (�3,770) (307,770)

Other Finance Income

2006 2005

Schemes€’000

Unfunded€’000

Total€’000

Schemes€’000

Unfunded€’000

Total€’000

Interestonschemeliabilities (97,000) (577) (97,577) (94,000) (609) (94,609)

Expectedreturnonschemeassets

118,700 - 118,700 �00,000 - �00,000

21,700 (577) 21,123 6,000 (609) 5,39�

The actuarial gains and losses are analysed as follows:

2006 2005

Schemes€’000

Unfunded€’000

Total€’000

Schemes€’000

Unfunded€’000

Total€’000

Differencebetweenexpectedandactualreturnonassets

66,000 - 66,000 257,000 - 257,000

Experiencegainsandlossesonschemesliabilities

(43,000) - (43,000) (2,000) (587) (2,587)

Changesinassumptionsunderlyingthepresentvalueofschemesliabilities

94,353 826 95,179 (256,�99) - (256,�99)

Actuarialgain/(loss)recognisedin

117,353 826 118,179 (�,�99) (587) (�,786)




History of actuarial gains and losses

2006€’000

2005€’000

2004€’000

2003€’000

2002€’000

Differencebetweenexpectedandannualreturnonassets

66,000 257,000 85,000 45,000 (394,000)

Expressedasapercentageofschemesassets

3% �3% 5% 3% (29%)

Experiencegainsandlossesonschemesliabilities

(43,000) (2,000) (65,000) (79,000) 242,000

Expressedasapercentageofschemesliabilities

(2%) (0%) (3%) (5%) �7%

Totalactuarialgainsandlosses 117,353 (�,�99) (��0,000) (�06,000) (2�5,000)

Expressedasapercentageofschemesliabilities

5% (0%) (6%) (6%) (�5%)

19. Share Capital

Group and Company

2006€’000

2005€’000

Authorised:80,000,000OrdinarySharesof€�.25each

100,000 �00,000

Allotted,calledupandfullypaid:54,590,946OrdinarySharesof€�.25each

68,239 68,239

On�4January,2003,pursuanttoSection26oftheEconomicandMonetaryUnionAct,�998,the

Company’sshareswererenomalisedfrom€�.269738to€�.25pershareandanamountof€877,000

wastransferredtoacapitalconversionreservefund.

20. Profit and Loss Account

Group Company

2006 €’000

2005 €’000

2006€’000

2005€’000

Atbeginningofyear (137,628) (�76,552) (210,308) (�82,543)

Profit/(loss)forthefinancialyear 75,665 40,7�0 69,616 (25,979)

Otherrecognisedgains/(losses) 118,179 (�,786) 118,179 (�,786)

Atendofyear 56,216 (�37,628) (22,513) (2�0,308)


21. Reconciliation of Shareholders’ Funds/(Deficit)

Group Company

2006 €’000

2005 €’000

2006€’000

2005€’000

Atbeginningofyear (68,512) (�07,436) (141,192) (��3,427)

Profit/(loss)forthefinancialyear 75,665 40,7�0 69,616 (25,979)

Otherrecognisedgains/(losses) 118,179 (�,786) 118,179 (�,786)

Shareholders’funds/(deficit)atendofyear 125,332 (68,5�2) 46,603 (�4�,�92)

22. Gross Cash Flows

2006€’000

2005€’000

Returnsoninvestmentsandservicingoffinance

Interestpaid (5) (56)

Taxation

Tax(paid)/refunded (17,001) �32

Capitalexpenditureandfinancialinvestment

Purchaseoftangiblefixedassets (16,853) (9,629)

Disposaloftangiblefixedassets 109,855 387

93,002 (9,242)

Acquisitionsanddisposals

Disposalofsubsidiaryundertakings(note4) 1,177 76,200

Financialservicesjointventuresetupcosts (4,550) -

Acquisitionofsubsidiaryundertakings - (243)

(3,373) 75,957

Managementofliquidresources(notea)

Increaseintermdeposits (60,029) (84,442)

Notea:Liquidresourcescomprisetermdepositswithamaturitynoticeperiodofmorethanoneday.



23. Analysis of Net Funds

Atbeginningofyear€’000

Cashflows

€’000

Atendofyear

€’000

Cashatbankandinhand 244,472 (305) 244,167

Amountsheldintrust (283,426) 49,98� (233,445)

49,676

Termdeposits 224,298 60,029 284,327

Total �85,344 �09,705 295,049

24. Subsidiary and Associated Undertakings

Name NatureofBusiness %Holding RegisteredOffice

SubsidiaryundertakingshelddirectlybytheCompany

AnPostNationalLottery Operationofthe 80% GeneralPostOffice,Company(note27) NationalLottery O’ConnellStreet,Dublin�.

ArcadePropertyCompany Propertydevelopment �00% GeneralPostOffice,Limited andletting O’ConnellStreet,Dublin�.

PostConsultInternational Computersoftwareservices �00% GeneralPostOffice,Limited O’ConnellStreet,Dublin�.

PrecisionMarketing Provisionofmarketingdata, �00% GeneralPostOffice,InformationLimited databaseservicesand O’ConnellStreet,Dublin�. businessdirectories

Prince’sStreetProperty Propertydevelopment �00% GeneralPostOffice,CompanyLimited andletting O’ConnellStreet,Dublin�.

PrintpostLimited Highvolumeprinting �00% GeneralPostOffice, O’ConnellStreet,Dublin�.

Post.TrustLimited Digitalcertificationandsecurity �00% GeneralPostOffice, services O’ConnellStreet,Dublin�.

JMCVanTransLimited Courieranddistribution �00% GeneralPostOffice, O’ConnellStreet,Dublin�.

TranspostLimited Courieranddistribution �00% GeneralPostOffice, O’ConnellStreet,Dublin�.

WaldermarLimited Courieranddistribution �00% GeneralPostOffice, O’ConnellStreet,Dublin�.

KompassIrelandPublishers Dormant �00% GeneralPostOffice,Limited O’ConnellStreet,Dublin�.

AnPostBillpostProcessing Billpaymentprocessing �00% GeneralPostOffice,ServicesLimited O’ConnellStreet,Dublin�.

AnPostBV Holdingcompany �00% Locatellekade�, Parnassustoren,�076AZ Amsterdam,TheNetherlands.

AnPostGeoDirectory Databaseservices �00% GeneralPostOffice,Limited O’ConnellStreet,Dublin�.


24. Subsidiary and Associated Undertakings (continued)

Name NatureofBusiness %Holding RegisteredOffice

Subsidiaryundertakingsheldindirectlythroughasubsidiaryundertaking

AnPostDirectLimited Financialservices �00% GeneralPostOffice, O’ConnellStreet,Dublin�.

AnPostDirectManagement Dormant �00% GeneralPostOffice,ServicesLimited O’ConnellStreet,Dublin�.

AnPost(NI)Limited Holdingcompany �00% StokesHouse, CollegeSquareEast,Belfast.

AirBusinessLimited Distribution �00% 4,TheMerlinCentre, AcrewoodWay,St.Albans Herts,U.K.

AssociatedundertakinghelddirectlybytheCompany

ThePrizeBondCompany Administrationofthe 50% GeneralPostOffice,Limited PrizeBondScheme O’ConnellStreet,Dublin�.

JointVenture

WizardDirectStationery Dormant 50% GeneralPostOfficeCompanyLimited O’ConnellStreet,Dublin�.

AirBusinessLimitedisincorporatedinandoperatesinEngland&Wales.AnPost(NI)Limitedisincorporated

inandoperatesinNorthernIreland.AnPostBVisincorporatedinandoperatesintheNetherlands.

AllotherundertakingsareincorporatedinandoperateintheRepublicofIreland.Allshareholdingsconsist

ofordinarysharecapital.

AnPostNationalLotteryCompanycarriesonthebusinessofoperatingtheNationalLotteryunderlicence

fromtheMinisterforFinanceinaccordancewiththeprovisionsoftheNationalLotteryAct,�986.20%of

theissuedsharecapitalisheldbytheMinisterforFinance.

ThePrizeBondCompanyLimitedcarriesonthebusinessofadministeringthePrizeBondSchemeunder

contractfromtheNationalTreasuryManagementAgency.

ThefollowingsubsidiarieswillavailofthefilingexemptionavailableunderSection�7oftheCompanies

(Amendment)Act,�986,wherebytheywillannexthefinancialstatementsofAnPosttotheirannual

returns:

PostConsultInternationalLimited;PrintpostLimited;Post.TrustLimited;JMCVanTransLimited;Transpost

Limited;WaldermarLimited;PrecisionMarketingInformationLimited;Prince’sStreetPropertyCompany

Limited;AnPostBillpostProcessingServicesLimited;AnPostGeoDirectoryLimitedandKompassIreland

PublishersLimited.



25. Lease Commitments

2006 2005

Land&buildings

€’000

Other

€’000Total

€’000

Land& buildings

€’000

Other

€’000Total

€’000

Annualcommitmentsundernon-cancellableoperatingleaseswereasfollows:

Group

Expiringwithinoneyear 823 953 1,776 �,227 496 �,723

Expiringafteroneyearandbeforefiveyears

1,337 4,355 5,692 594 3,375 3,969

Expiringafterfiveyears 5,000 64 5,064 5,298 - 5,298

7,160 5,372 12,532 7,��9 3,87� �0,990

Company

Expiringwithinoneyear 691 935 1,626 636 432 �,068

Expiringafteroneyearandbeforefiveyears

407 4,167 4,574 506 3,250 3,756

Expiringafterfiveyears 4,906 64 4,970 4,844 - 4,844

6,004 5,166 11,170 5,986 3,682 9,668

Otherleasecommitmentsrelatetoequipmentandmotorvehicles.

LeasecommitmentsoftheCompanyincludecommitmentstosubsidiaryundertakings.

Therewerenomaterialfinanceleasecommitmentseitherat3�December,2006orwhichweredueto

commenceafterthatdate.

26. Capital Commitments

Futurecapitalexpenditureapprovedbythedirectorsbutnotprovidedforinthefinancialstatementswas

asfollows:

Group Company

2006 €’000

2005 €’000

2006€’000

2005€’000

Contractedfor 7,855 3,50� 7,855 3,50�

Authorisedbutnotcontractedfor - �0,464 - �0,464

7,855 �3,965 7,855 �3,965


27. Related Party Disclosures and Controlling Party

Controlling party

TheGroupwascontrolledthroughouttheyearbytheMinisterforCommunications,MarineandNatural

ResourceswhoholdstheentireissuedsharecapitalofAnPostexceptforoneordinarysharewhichisheld

bytheMinisterforFinance.

Transactions with related undertakings

An Post National Lottery Company

TheGroupprovidesAnPostNationalLotteryCompany,anundertakingnotconsolidated,with

managementanddeliveryservices.Suchservicesarecarriedoutonanarm’slengthbasisor,where

required,inaccordancewiththetermsofthelicencegrantedbytheMinisterforFinancetooperate

theNationalLottery.TheCompanyalsoprovidesagencyservicestoAnPostNationalLotteryCompany

wherebytheCompanymakessalesandpaysprizesonbehalfofAnPostNationalLotteryCompanyin

accordancewiththestandardtermsandconditionsandremunerationstructurecommontoallofAnPost

NationalLotteryCompany’sagents.Groupturnoverfortheyearincludes€5,363,000(2005:€5,33�,000)

inrespectofservicesprovidedtoAnPostNationalLotteryCompany.Theseamountsareinclusiveofa

managementfeeof€2,844,000(2005:€2,966,000)payabletotheCompanyinaccordancewiththe

termsofthelicencetooperatetheNationalLottery.

ThecostsofstaffworkinginAnPostNationalLotteryCompanyarerechargedfromAnPostatcostand

amountedto€5,660,000fortheyearended3�December,2006(2005:€5,763,000).

TheamountowedbyAnPostNationalLotteryCompanytotheCompanywas€8�9,000at3�December,

2006(2005:€5�2,000).

AnPosthasagreedtoguaranteetheperformancebyAnPostNationalLotteryCompanyofitsobligations

underthelicencefortheholdingoftheNationalLotterygrantedbytheMinisterforFinance.AnPosthas

providedtheguarantee,themaximumliabilityofwhichamountsto€�0million,forthedurationofthe

licenceto3�December,20�0.

The Prize Bond Company Limited

UnderthetermsofacontractwithThePrizeBondCompanyLimited,theCompanycarriesoutcertain

aspectsoftheadministrationofthePrizeBondScheme.FeesearnedbytheCompanyinrespectofsuch

servicesamountedto€�,667,000fortheyearended3�December,2006(2005:€�,720,000).The

amountowedbyThePrizeBondCompanyLimitedtotheCompanywas€�65,000at3�December,2006

(2005:€�98,000).

Transactions with Government departments and other State bodies

TheGroupprovides,intheordinarycourseofbusiness,postage,agency,remittanceandcourierservices

tovariousGovernmentdepartmentsandotherStatebodies.



28. Contingencies

Group and Company

Therewerenocontingentliabilitiesorguaranteesat3�December,2006inrespectofwhichmaterial

lossesareexpectedotherthanasdisclosedelsewhereinthefinancialstatements.

29. Board Approval

ThefinancialstatementswereapprovedbytheBoardofDirectorson22March,2007.


Consolidated Profit & Loss Account

2006€’000

2005€’000

2004*€’000

2003* €’000

2002* €’000

Turnover 818,827 752,887 750,�93 709,209 683,7�6

Operatingcosts (804,162) (736,690) (748,422) (752,�00) (70�,��2)

Operatingprofit/(loss) 14,665 �6,�97 �,77� (42,89�) (�7,396)

Retrospectivepayaward** (20,040) - - - -

Assetdisposals 94,700 59,323 5,298 �3,3�0 -

Businessrestructuring (13,883) (40,000) - - (52,500)

Shareofresultsofjointventureandassociate

- - (50) (��3) (376)

Otherfinanceincome 21,123 5,39� - - -

Profit/(loss)beforetaxation 96,565 40,9�� 7,0�9 (29,694) (70,272)

**Forstatutoryaccountspresentationpurposes,thisretrospectivepayawardisincludedinarrivingatgroup

operatingprofit(seenote4).Ithasbeenextractedforthepurposesofthescheduleaboveasthepayaward

relatesto2003and2004.

Consolidated Balance Sheet

Fixedassets 196,197 2�6,275 248,079 279,5�3 30�,305

Netcurrentassets/(liabilities) 205,034 ��5,903 �8,357 (38,4�0) (25,606)

Otherliabilities (82,673) (92,920) (9�,��3) (72,296) (87,54�)

Netassetsexcludingpensionliability 318,558 239,258 �75,323 �68,807 �88,�58

Pensionliability (193,226) (307,770)

Netassets/(liabilities)includingpensionliability 125,332 (68,5�2)

Capitalandreserves 125,332 (68,5�2) �75,323 �68,807 �88,�58

Ratios2006 2005 2004* 2003* 2002*

Operatingprofit/(loss)aboveas%ofturnover 1.79% 2.�5% 0.24% (6.05%) (2.5%)

Operatingprofit/(loss)aboveas%ofaverageshareholders’fundsbeforepensionliability

5.26% 7.8�% �.03% (24.03%) (7.79%)

Staffandpostmasters’costsas%ofoperatingcostsbeforeexceptionalitem

69.40% 69.79% 67.�3% 67.00% 68.59%

Currentassetsas%ofcurrentLiabilities

214.25% �77.85% ��.97% 75.96% 83.03%

*2004andprioryearsareaspreviouslyreportedunderSSAP24–AccountingforPensionCosts.

FiveYearFinancialSummary


Mail

2006 2005 2004 2003 2002

Letterscorerevenueindex(200�=�00)(note�)

118.4 ��3.6 �09.2 �07.8 �04.6

Note�:Thisindexreflectschangesinletterscorerevenueandexcludesrevenuefromelections,referenda,

flotations,foreignadministrationsineachyearaswellastheimpactofchangestopublishedtariffs.

System Size

2006 2005 2004 2003 2002

No.ofdeliverypoints(millions) 1.998 �.875 �.765 �.685 �.598

Postofficenetwork:

Companypostoffices 84 88 90 92 96

Sub-postoffices 1,277 �,32� �,365 �,4�7 �,584

Postalagencies 171 �6� �59 �49 86

1,532 �,570 �,6�4 �,658 �,766

Othercompanypremises 65 63 62 62 58

No.ofmotorvehicles 2,991 2,905 2,908 3,0�� 2,9�7

Personnel

2006 2005 2004 2003 2002

(Staffnumbersat3�December)

Headquarters 551 562 567 588 675

Savings/Remittanceservices 286 295 299 327 340

Inspection 38 37 45 47 49

Postmen/postwomen 4,207 4,326 4,520 4,680 4,722

Postalsorters 1,369 �,�97 �,3�3 �,28� �,2�5

Postofficeclerks 1,024 �,042 �,094 �,�26 �,�45

Othergrades 665 708 790 8�7 803

Temporary 1,311 �,298 �,0�9 �,0�0 864

TotalAnPoststaff 9,451 9,465 9,647 9,876 9,8�3

TotalAnPoststaff(FTE)¹ 8,868 8,966 9,�64 9,4�� 9,4�6

Casualstaff(FTE)² 423 377 358 386 349

Overtimehours(FTE)³ 2,006 �,953 �,9�8 2,�2� 2,8�3

GrandTotal(FTE) 11,297 ��,296 ��,440 ��,9�8 �2,578

Subsidiarycompanies 487 492 577 622 577

Postmasters:Engagedasagents 1,277 �,32� �,365 �,4�7 �,584

�FTE=Fulltimeequivalent

2Weeklyaverage

3WeeklyaverageovertimehoursconvertedtobasichoursinFTE

OperationalStatistics


2006 €m

2005 €m

2004 €m

2003 €m

2002 €m

VALUEOFSAVINGSSERVICESFUNDS

AT31DECEMBER(note�) 5,863 5,668 5,3�� 5,004 4,794

COUNTERS:BusinessValue

RemittanceServices

Postalmoneyordersissued 418 422 496 564 6�9

PostOfficeSavingsServices

Savingsbankdeposits 850 8�� 8�2 792 746

Savingsbankwithdrawals 807 638 645 62� 590

Savingscertificatesissued 469 400 4�7 347 2�7

Savingscertificatesrepaid 1,052 725 88� 757 6��

Instalmentsavingsissued 97 78 72 67 63

Instalmentsavingsrepaid 114 �04 �3� �34 �47

Savingsbondsissued 673 475 505 469 263

Savingsbondsrepaid 626 362 329 360 332

Pensions,AllowancesandSocialWelfareBenefits

Childbenefitspaid 1,119 �,��6 �,�0� �,�0� �,0�6

Unemploymentbenefitspaid 1,587 �,075 �,069 �,042 990

Oldagepensionspaid 1,577 �,225 �,�95 �,�40 �,083

Widows/orphanspensionspaid 900 865 8�5 766 726

Otherallowances 1,900 2,34� 2,228 2,�67 2,060

Other

Miscellaneous 3,658 3,325 2,969 2,3�6 �,679

2006000’s

2005000’s

2004000’s

2003000’s

2002 000’s

BILLPAYVOLUMES 25,510 24,777 23,329 2�,238 �7,533

TVLICENCESALES 1,339 �,273 �,24� �,�76 �,�67

Note�:TheassetsandliabilitiesoftheSavingsServicesvestintheMinisterforFinanceand,accordingly,are

notincludedinthefinancialstatementsoftheCompany.

OperationalStatisticscontinued

40214 An Post AR06 English

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Transcript of 40214 An Post AR06 English