bpost, the bringers of tomorrow · future career moves. Since 2007, bpost’s Code of Conduct sets...

bpost,the bringers of tomorrow

b p o s t , t h e b r i n g e r s o f t o m o r r o w

Much more than just letters bpost delivers letters and

parcels, and markets innovative products and solutions

A proven strategy for

profitable and sustainable

growth

A modern, healthy and

efficient company

P 5

P 9

P 13

P 17

An innovative, high-tech company

Motivated employees who are focused on

customersP 25

P 29

A strong commitment to corporate social

responsibility

P 33

With more than 26,000 employees,

bpost is a key player in Belgian

society


The Belgian postal service was founded in 1830. Today, it is firmly established within Belgian society. By nature of its activities, bpost enables citizens, companies and organisations to communicate.

bpost, a key player in Belgian society

5

An economic actor

bpost is an autonomous state enterprise in which the Belgian state has a majority shareholding. In June 2013, half of bpost’s shares were offered for sale to private and institutional investors on Euronext Brussels.

bpost is a key contributor to the Belgian economy. It is one of Belgium’s largest employers, with more than 26,000 employees, offering quality jobs throughout the country, including jobs for people with few or no qualifications. It actively contributes to the Belgian state budget in the form of local, regional and federal taxes, social security contributions and the payment of dividends. bpost’s net financial contribution in 2013 was almost €600 million.

2,443.2 millionsturnover 2013

1,229.7 millions payroll costs 2013

168.9 millionsincome tax expense 2013

287.9 millionsnet profit 2013

600 millions net contribution to the Belgian budget in 2013

150 millions investments in new products and innovative solutions in 2013

90% of purchases are made from suppliers based in Belgium

Enabling communication

bpost brings people together

and helps to promote dialogue

in society.

6

On the doorstep

bpost is Belgium’s leading postal operator and the universal service provider, which means collecting and delivering letters and parcels throughout Belgium five days per week.

Every day more than 10,000 postmen and women make their rounds across the country, delivering some 10 million letters and 105,000 parcels to 4.7 million households, as well as collecting mail from more than 13,000 red postboxes.

bpost also provides public services (Services of General Economic Interest) on the basis of a Manage-ment Contract concluded with the Belgian state. They include a.o. maintaining an extensive network of post offices and postpoints, early delivery of newspapers (before 7.30 am during the week and 10 am on Satur-days), payment at home of pensions and other social allowances, acceptance of cash deposits or payments in cash into current accounts at post office counters, and attractive postal rates for non-profit associations.

bpost receives compensation from the Belgian state to cover the costs of providing these public services, as set down in the Management Contract.

7


Every day, bpost delivers

several

tens of thousands of pensions and social allowances

105,000parcels

10 millionletters

and makes payments at home, every month, of

9


Postmen and women are increasingly “the bringers of tomorrow”, who do not stop at the mailbox but go right up to the customer’s front door.

Much more than just letters

10

Distribution of• letters• addressed and unaddressed direct mail• parcels and express mail• newspapers and magazines

A range of solutions• for document management, home pick-up, mail franking and more

• that combine electronic communication, letters, parcels and payments such as vehicle licence plate orders and deliveries

Financial and insurance servicesbpost bank and other financial products (bpaid, money transfer)

International activitiesPresence on the European, Asian and North American markets under the “Landmark Global, a bpost company” label

Multiple sales channels

A company that takes the lead, offering innovative solutions

11


670 postpoints

120 parcel lockers

450 cash dispensers

670 post offices

(at least one in every Belgian municipality)

1eShop

1Contact Center

(+32 22 012345)proximity


Over recent years bpost has demonstrated its ability to adapt to an environment in constant evolution.

A modern, healthy and efficient company

13

14

Today, bpost is a modern, high-performance, customer- oriented and financially secure company that answers the challenges of tomorrow on completely liberalised markets.

Those many years of intense work culminated in an IPO in June 2013, which confirmed bpost’s status as a healthy company focused on the future.

Start of the continuous optimisation of delivery rounds

Introduction of automated round sorting and mail sequencing

• Building of four new sorting centres

• Transformation of the points of sale network

Implementation of a new distribution structure with a reduced number of buildings

A successful change track record

In 2003, faced with major operational and financial issues,

bpost embarked on a modernisation programme to improve

efficiency, significantly reduce costs, generate alternative

sources of income, and improve the quality of mail delivery

and services provided through the points of sale network.

2003

New strategic programme

Vision 2020to further increase

efficiency

2004 2007 2009 2011

15


2003 20032013 2013

EBIT delivery quality[mail delivered on time]

85% 96.3%

customer satisfaction

2007 2013

of customers served within five minutes at post offices

58%

84%

EARNINGS

BEFORE

INTEREST

& TAXES

€ -6

9 m

illio

n

€ 43

6 m

illio

n

2004 2013

75% 86%


bpost is now a modern, high-performing and financially secure company. It is one of the leaders of the European postal operators.

A proven strategy for profitable and sustainable growth

17

A strategy centred on drivers

These drivers are expected to help bpost create value for stakeholders and offer appropriate remuneration to shareholders.

4

Defending the core activities

1

Developing growth areas

within the core competencies Keeping

stakeholders on board

Controlling costs and improving productivity

3

4

2


USPs:

• a postman or woman serving

every household, every day

•perfectknowledgeofthefield

• proximity to customers, with

the resulting trust for postmen

and women

• a dense delivery network

throughout the country

Defending the core activities

1

19

Mail continues to be bpost’s main source of revenue. To protect these activities going forward, bpost works continuously to improve service quality and operational performance. bpost also develops initiatives to promote paper as an efficient medium of communication.

The main challenge for bpost is the need to manage declining mail volumes, although this decline is relatively limited compared to some other countries.

Developing growth areas within the core competencies

To generate new sources of revenue, bpost is developing initiatives to take those last steps to the customer’s front door.

bpost goes to the front door to deliver parcels, provide home-based services and offer financial products. bpost has also launched various pilots to create new sources of revenue and help strengthen the relationship between suppliers and their customers.

• combo.be, a service that consolidates and delivers online customer orders at local retailers, service providers, supermarkets and online vendors

• Water meter readings

• Identification of customers for a banking institution in the context of the fight against money laundering

• Signing of contracts within the framework of a consumer credit grant procedure

• Precautionary home visits to ageing persons (combatting social isolation)

2

20


bpost bank offers a range of simple, secure products for everyone, with capital protection.

Another growth area is the marketing of integrated solutions that enable bpost to manage end-to-end processes for customers, from order to delivery, including document printing, payment and supplier contacts.

Lastly, growth is also driven by improving the range of financial products marketed through bpost bank.

Production and delivery of healthcare booklets for INAMI/RIZIV (Belgian National Institute for Health and Disease Insurance)

Production and delivery of new vehicle licence plates

21

Controlling costs and improving productivity

Cost reductions are being implemented at all levels within the company. This entails continuous improvement, including savings through recurring programmes such as Georoute (continual adjustment of mail rounds based on volume variations). bpost is also engaged in several production improvement initiatives, such as the Vision 2020 plan for mail activities.

bpost is committed to excellence. In order to achieve excellence, bpost harnesses innovation and new technologies, upgrades working methods and works to permanently improve the quality of services to customers.

3

22


Vision 2020

The Vision 2020 plan concerns the Mail business. It provides for increased centralisation and automation of all preparatory mail distribution tasks, consolidation of all parcel sorting activities at a single sorting centre, rationalisation of the number of distribution offices from more than 400 to around 60 Mail Centers and testing of a new distribution model based on the centralisation of preparatory mail delivery tasks.

23

Keeping stakeholders on board

Only customers who are enthusiastic about bpost’s services will remain loyal and recommend them to others.

bpost’s biggest challenge is remaining part of their daily lives. To do so, bpost needs to harness the natural enthusiasm and commit-ment of each and every employee.

As a listed company, bpost is also committed to doing its utmost to reward all shareholders who have chosen to invest and take part in the development of the company.

4


Over the years, bpost has reinvented itself on the basis of innovation and new technologies. The biggest developments in new technologies have come in bpost’s core business, letters and parcels.

An innovative, high-tech company

25

Thanks to state-of-the-art sorting

machines, bpost now delivers letters

and parcels the day after they enter

the mail network. A tracking service

is also offered.

collection collectionOSTEND DINANT

ARLON HASSELT

dispatch to the Ghent X sorting centre (national sorting)

national sorting (Charleroi X)

road transport to the Liege X sorting centre

regional sorting (Liege X)

transport to the Arlon Mail Center

road transport to the Antwerp X sorting centre

regional sorting (Antwerp X)

transport to the Hasselt Mail Center

delivery delivery

The mail journey

20.00 23.30

17.00 17.00

23.00

1.00

3.30

0.30

2.30

3.30

7.30 8.00

26


Innovative products for residential customers

bpost also makes product and solution innova-tions to implement its strategy of defending the postbox and targetting the front door. By integrating new technologies, the company has evolved from convenience products to added-value solutions, such as vehicle licence plates and combo.be. Other novel products like the bpaid card and Mobile Postcard are very successful among consumers.

Lastly, the printing of heat-sensitive stamps and stamps smelling and tasting of chocolate showcase the technical know-how of bpost’s stamp printers.

BARCELONA

Brussels (EMC-Brucargo)

transport

delivery

sorting

collectionKORTRIJK

20.00

19.00

4.00 Next day 24h

Two days10.00

track&trace


In its efforts to remain part of the daily lives of customers, bpost can draw on the enthusiasm and engagement of each and every employee.

Motivated employees who are focused on customers

29

A company made up of men and women with different cultural backgrounds, levels of education and skill sets.

bpost naturally aims to promote good

working conditions for all its employees

so they can give the best of themselves.

The company launched the bpeople project in 2012. This highlights the conditions to be met in order to promote the wellbeing and engagement of the employees. It is expected to help the company tighten ties with customers and earn their loyalty.

“Working together” is one of bpost’s values. The diversity programme helps bpost put this value into practice on a daily basis and remain in phase with the society from which it recruits its employees and to which it markets its services. bpost positions itself on the job market as an organisation that is also attractive to a large number of people

with few qualifications. bpost offers them employment as well as training opportuni-ties and the chance to work towards a diploma. As such, bpost helps employees develop skills they can use in their current jobs, and which will help them in potential future career moves.

Since 2007, bpost’s Code of Conduct sets out what the company expects from every employee with regard to professional ethics and working together. It applies to all bpost employees, regardless of their status or posi-tion within the organisation.

28,112

0 - 3013.2%

31 - 359.1%

36 - 4010.8%

41 - 4515.6%

46 - 5017.0%

51 - 5516.7%

56 +17.6%

gender breakdown

9,485 18,627

total number of employees at the end of 2013

30


Recognising Experience

Having a qualification is a valuable asset in a career. It increases a person’s employment possibilities and future prospects within the company. In this context, bpost launched the Recognising Experience initiative in 2011.

The initiative offers employees the chance to earn a higher secondary education diploma if they do not yet have one.

Recognising Experience is a collaborative effort between the company and ten adult education centres, and consists of a training course lasting around two years. The programme, offered mainly by distance learning, promotes skills and knowledge already acquired on the job, with the additional possibility of earning a higher secondary school diploma.

At the end of 2013 some 500 bpost employees were following this training course. The first students graduated in February and October 2014.

“You don’t get many chances to earn your diploma when you’re older. That’s why I say to everyone: ‘get on with it!’”Cornelis Soeteman, Postman

“During my course I also learned how to write a letter and make a CV. It means I’m much better prepared for internal vacancies.”Els Botson, Postwoman

“After twenty-seven years as a postman I was able to start as a counter clerk. I have Recognising Experience to thank for that.”Pascal Gilson, Counter clerk


Over the years, bpost has developed a full programme to integrate the imperatives of economic, environmental and social sustainability in the company culture and business.

A strong commitment to corporate social responsibility

33

Corporate social responsibility, an integral part of bpost’s strategy

bpost’s role in society drives it to act

in ways that promote the perception

among all stakeholders that it is a

fully responsible company.

Environment

By the very nature of its activities, bpost has an impact on the environment, be that in terms of carbon emissions or energy consumption. The implementation of systematic carbon emission reduction programmes linked to bpost’s activities is a requirement to guarantee to customers and stakeholders that bpost reduces as much as possible the ecological impact linked to handling the mail.

bpost has a large portfolio of properties. To limit the ecological impact of these proper-ties, bpost has set up environmental management systems for the main ones. The five sorting centres, EMC Brucargo, Stamps Production Belgium and bpost’s head office in Brussels are all ISO 14001 certified.

-31% -17% between 2007 and 2013 between 2005 and 2013

Carbon emissions

Energy consumption

34


5

1

270 670sorting centres

stamp printing unit (Mechelen)

Centre Monnaie in Brussels (bpost’s head office)

EMC Brucargo (international mail sorting centre)

logistical platforms or distribution offices

post offices

35

Fleet

bpost’s fleet is one of the biggest in Belgium, which puts it right at the heart of the company’s environmental challenge. The introduction of electric bikes to replace mopeds was the first step in upgrading the fleet. Van drivers are trained to drive in an environmentally responsible way (generating a fuel saving of almost 100,000 litres on an annual basis).

Fleet

6,466 vans

2,180 mopeds

412 trucks

3,140 bicycles

2,524 electric bikes

10 delivery three-wheelers

36


A green stage

bpost took first place in the International Post Corporation’s 2013 environmental management ranking of 24 operators, based on the 2012 results. That achievement was repeated in 2014 (based on the 2013 results).

Encouraged by this success, bpost has set itself new environmental objectives. By 2020, bpost aims to reduce carbon emissions to 45% of the 2007 figure and reduce energy consumption to 25% of the 2005 figure. The company wants to remain among the best in the IPC classification by launching new structural and behaviour-based initiatives to improve the ecological credentials of its activities, properties and fleet.

bpost also provides financial support to en-courage employees who commit actively and voluntarily to a civic, cultural, social or envi-ronmental project in Belgium or overseas.

Corporate governance

As a listed company bpost is committed to high standards of corporate governance (good management, integrity, transparency in decision making) and relies on the Belgium Corporate Governance Code of 12 March 2009 as a reference code. bpost also complies with the OECD guidelines on the governance of state-owned companies.

A sustainable purchasing policy

bpost implemented a process broadening its sustainable purchasing policy with its suppliers to take into account environmental (energy, water, waste, products) and social performance (health and safety, working conditions, child/forced labour), and raise the awareness of suppliers presenting risks in these areas.

Social engagement

Since 1997 bpost has worked to help eradicate illiteracy in Belgium with financial support for the bpost Literacy Fund (managed by the King Baudouin Foundation). The goal is to support literacy projects set up by various organisations.

37

CO2 neutral distribution

CO2 neutral distribution

Structure Shareholders (situation as at 3 October 2014)

Business units

Operating unit

Corporate entities

Mail & Retail Solutions Mail & Service Operations Service Operations, Finance, ICT

Parcels

International

Human Resources

51.04% Belgian state (directly and through the Federal Holding and Investment Company)

48.50%Free float

(excl. bpost employees)

0.46%bpost

employees


Shareholders (situation as at 3 October 2014)

www.bpost.be I +32 22 012345 I bpost, Centre Monnaie, 1000 Brussels

Resp

onsib

le p

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her:

Mat

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s, bp

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Cent

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