H6545 - An Post Annual Report 2012 Interior AW · since March 2010 prior to which he was the...

an post an

nual report 2012

Contents

3 Mission,VisionandValues

4 BoardofDirectorsandCorporateInformation

6 Chairman(Designate)’sStatement

8 Management

10 ChiefExecutive’sReview

16 FinancialReview

18 UniversalService

21 Sustainability

25 StampIssuesandPhilatelicPublications

29 IndextotheFinancialStatements

1ANPOSTANNUALREPORT2012

2 ANPOSTANNUALREPORT2012

an post annual report 2012

DOINGMORE

COMPETING

CHANGING CONTR

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3AN POST ANNUAL REPORT 2012

our mission

To provide world class postal, distribution and financial services with unrivalled local community access and global connections.

our vision

Working together as a united team, our ambition is to outperform the new competition we face, delivering a better quality service, more efficiently, to more customers by continuously adapting, innovating and implementing change.

our values

Quality Customer ServicePutthecustomerfirstineverythingwedo,consistentlydeliveringworldclassservicequality.

Commercial SuccessAchievecommercialsuccess,earningprofitsthatcansustainanddevelopthebusiness.

Cost Competitiveness & EfficiencyRunacostcompetitive,efficientoperation.

Respect & Personal ResponsibilityRespecteachotherandtakepersonalresponsibility.

Respected Corporate CitizenCarefortheenvironmentandbeengagedinthecommunityasrespectedcorporatecitizens.

Innovation & ChangeContinuallyinnovate,adaptandimplementchangesuccessfully.

an post annual report 2012

DOINGMORE

COMPETING

CHANGING CONTR

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BoaRD oF DIReCtoRs anD CoRPoRate InFoRMatIon

1. Christoph MuellerChairman Designateannounced as Chairman 26 March 2013MrMuellerjoinedAerLingusasitsChiefExecutiveOfficer(CEO)inSeptember2009.HepreviouslyheldthepositionofExecutiveAviationDirectoratTUITravelplc.,aFTSE100company.MrMuellerpreviouslyheldseniorexecutivepositionsinanumberofcompaniesintheaviationindustryincludingDaimlerBenzAerospaceandLufthansaAG.HeservedastheChiefFinancialOfficerofDHLWorldwidefrom2002to2004andbecameamemberoftheExecutiveCommitteeofDeutschePostAGin2004aftertheacquisitionofDHLbyDeutschePostAG.HeisamemberoftheBoardofTourismIreland.HehasanMBAfromtheUniversityofCologneandhealsocompletedanAdvancedManagementProgramatHarvardBusinessSchool.

2. Noel adamson Employee Directorappointed 1 November 2012MrAdamsonjoinedthePostOfficein1981asaPostmanintheCentralSortingOfficeinDublin’sSheriffStreet.HehasbeenemployedasaPostpersoninFairviewDeliveryServicesUnit3forthelast18years.ThroughouthisemploymenthehasbeenanactivememberoftheCommunicationsWorkers’Union.HeisthecurrentchairmanoftheStandingOrdersCommitteeandhealsoholdsthepositionsofAssistantSecretaryandHealth&SafetyOfficerwiththeDublinPostalDeliveryBranch.

3. Patrick ComptonEmployee Director - 1appointed 1 November 2012; Sixth termMrComptonhasworkedinthepostalserviceforthepast40yearsandhiscurrentpositionisthatofPartnershipCo-ordinator,basedinRoscommon.HewasamemberoftheNationalExecutiveoftheCommunicationsWorkersUnionfor22yearsanditsPresidentin1986.HewasalsoadirectorofThePrizeBondCompanyLimitedformanyyears.HeisactiveincommunitydevelopmentinhislocalareaandheistheCountyRoscommonGAACoaching&GamesDevelopmentOfficer.

4. Donal Connell, C.ENg., f.I.E.I., B.E.Director - 2, 3 appointed on 14 august 2006MrConnellwasappointedasChiefExecutiveon14August2006.HebeganhiscareerintheDepartmentofPostsandTelegraphsandhasheldseniormanagementpositionsinUnitrodeCorporation,3ComCorporationandMaxtorIrelandwherehewasGeneralManagerpriortojoiningAnPost.Heisanon-executiveDirectorofXilinxCorporation’sEuropeanBoardandheisChairmanofAnPostNationalLotteryCompany.

5. Thomas DevlinEmployee Directorappointed 1 November 2012; Third TermMrDevlinbeganhiscareerinthePostOfficein1976whenhejoinedtheDepartmentofPostsandTelegraphsasaJuniorPostmanworkingasamessengerintheMinister’sOffice.HeiscurrentlyemployedasaDeliveryServiceManagerinMalahideDeliveryServiceUnit,Co.Dublin.AnactivememberoftheCommunicationsWorkers’Union,heservedontheNationalExecutivefortwoyearsandwasChairmanoftheSDSDublinMotorDrivers’Branchfrom1996to2004.

6. Paul Henry a.C.a., M. accounting, B.a. (Bus & Econ)Director - 1appointed 15 September 2011MrHenry,aCharteredAccountant,hasworkedasaSeniorInternalAuditManagerandSeniorFinancialAnalystwithDublinAirportAuthorityPLCsince2008.PriortothatheworkedwithPriceWaterhouseCoopers,DublinwithwhomhetrainedasaCharteredAccountant.

7. William MooneyEmployee Directorappointed 1 November 2012MrMooneyjoinedthePostOfficein1982asaJuniorPostman.HeiscurrentlyemployedasaPostOfficeClerkintheGPO.HeisamemberoftheNationalExecutiveoftheCommunicationsWorkers’UnionandhealsoholdsthepositionofSecretaryoftheDublinPostalClerksBranchCommittee.

8. Martina O’ConnellEmployee Directorappointed 1 November 2012MartinaO’ConnelljoinedAnPostin1993asanAuxiliaryPostPersonandisnowworkingasaPostalOperativeinCork’sSouthCityDeliveryOffice.AnactivememberoftheCommunicationsWorkers’UnionsinceshejoinedtheCompany,MartinahasbeenamemberoftheNationalExecutiveCouncilsince2002andservesonanumberofsubcommittees.

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9. Peter Ormond B.a. (Bus. Mgt.)Directorappointed 8 March 2011MrOrmondistheMarketingManagerwithMidIrelandTourismsinceMarch2010priortowhichhewastheCommunityServicesProgrammeManagerforKilcormacDevelopmentAssociation.Hisotherworkexperiencesareinauctioneering,insalesandmarketing,andinlogistics.HeisamemberofOffalyCountyCouncilandwasitsChairmanin2005/2006.HeisalsoamemberoftheEducationFinanceBoard.

10. John Quinlivan B.SC. (Mgt. & Law), M.SC. (SPL. PLg.), Dip. In Public admin.Director - 3appointed 24 June 2008; Second TermMrQuinlivanhashadalengthycareerinlocalgovernment,servinginseniorpositionsinninecounties,including15yearsasLouthCountyManager.HeservedforfiveyearsasamemberoftheNationalRoadsAuthorityandhealsoservedasamemberoftheLocalGovernmentManagementServicesBoard,theLocalGovernmentComputerServicesBoardandAnComhairle.

11. William Scally M.a. Barrister-at-LawDirectorappointed 11 December 2012MrScallyhashadalengthycareerinEconomicsandPublicPolicy.Upuntil2011heworkedonacooperativebasisasanindependentpublicpolicyandpublicaffairsconsultantintheCIPAframeworkwithawidevarietyofIrishbusinessesandrepresentativebodies.HewasleadauthorofFixingFinance,the2010InstituteofInternationalandEuropeanAffairspublication.MrScallyhaslecturedwidelyontheIrishGovernmentandpoliticalprocess.HeworkedinIrishSugarformanyyearsandasapublicpolicyandeconomicadvisortoseveralIrishGovernments.HealsoservedontheboardofForfás.

12. Lorraine Tormey Postmaster Directorappointed 1 January 2013MsTormeyhasworkedinthefamilypostofficebusinessinRathowen,CoWestmeathallherlifeandshewasappointedPostmistresstherein2001.SheisalsoPostmistressofAustinFriarStreetPostOfficeinMullingar.MsTormeyisSecretaryoftheWestmeathBranchoftheIrishPostmasters’Union(IPU);DirectorandCompanySecretaryofRathowenCommunityDevelopmentandsheisinvolvedinabroadvarietyoflocalbusinessandcommunitydevelopmentinitiatives.

13. James Wrynn BSC.BCOMM., MBa.Director - 1appointed 15 September 2011MrWrynnisaformerSeniorLecturerinStrategicManagementinDITandHeadoftheDepartmentofAdministrativeStudiesinDIT’sFacultyofBusiness.HeservedontheBoardofESBformorethantenyearsandduringhistermofofficeservedasDeputyChairpersonfrom1995–2000.HealsochairedESBBoardCommitteesonInternationalInvestmentandStrategicResponsetoDeregulation.

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Secretary JackDempsey

Registered Office GeneralPostOfficeO’ConnellStreetDublin1

auditorKPMG,CharteredAccountants

Bankers BankofIreland

Solicitors Matheson

Registered Number98788

Key To Board Committees 1.AuditAndRisk2.Personnel3.Remuneration


CHaIRMan (DesIgnate)’s stateMent

The contribution of a high quality postal service to a modern economy is essential and accepted throughout the world. Declining traditional mail volume has caused many countries to examine the fi nancial model behind the provision of the Universal Service Obligation. I am aware that an Post has continued to keep abreast of developments, whilst taking action to address the impact of this ongoing decline. In so doing, the group has changed its revenue mix with non-core mail activities increasing steadily year-on-year.

ItisrecognisedthatAnPosthasimproveditscustomerserviceinrecentyears.TheCompanycontinuestoenjoyaverygoodreputationforthequalityofitsinternationalmailservice.


AnPosthasmanyuniqueassets;ithasanunrivalledretailnetwork,amailcollectionanddeliverynetworkwithacountrywidereach,adiversesetofproductsandservices,astrongandtrustedbrandandacommittedandexperiencedworkforce.Despitetheevolutionofthedigitalbusinessenvironment,theseassetsremainrelevanttobothbusinessandpersonalcustomersalike.OneofthekeychallengesfacingtheCompanyistoensurethattheseareappliedinamannerwhichwillensureasustainablefuturefortheorganisation.

Iunderstandthatsignificantchangehastakenplaceoverthelastnumberofyearsandthatnecessarychangeprogrammesareongoing.Myownexperienceindicatesthatsuchchangewillcontinueasthebusinessalignsitselfwithdemandandvolumeinordertoremaincompetitiveandmeetchangingcustomerdemands.Improvedflexibility,efficiency,costeffectivenessandinnovationwillbekeyelementsintheCompany’sdrivetoprovidesuperiorcustomerserviceacrossallaspectsofthebusiness.

AnPosthasplayedapivotalroleintheIrisheconomyandsocietyformanyyears.ItisagreatprivilegeandresponsibilityformetojointheCompanyasChairman.

IlookforwardtoworkingwiththeBoard,ManagementandstaffofAnPosttopositiontheCompanyastheycontinuetodealwithdifficulteconomicandmarketchallengeswhilstexploitingnewcommercialopportunitiesforthecorebusinessandsubsidiarycompanies.

TheCompanywishestothankthosewhoretiredfromtheBoardduringtheyearnamely,JerryCondon,AnneConnolly,PaddyCostello,GerryO’TooleandAlanSloane.ThanksarealsoduetoJohnFitzgerald(formerChairman)andCatherineWoods,bothofwhomretiredinFebruary2013.Theircontributionsduringtheirtermsofofficeareverymuchappreciated.

Christoph Mueller, Chairman (Designate)

DoinG more

The group has changed its revenue mix with non-core mail activities increasing steadily year-on-year.

8 AN POST ANNUAL REPORT 2012

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1. Donal Connell, C.ENg., f.I.E.I., B.E.Chief ExecutiveMrConnellwasappointedasChiefExecutiveon14August2006.HebeganhiscareerintheDepartmentofPostsandTelegraphsandhasheldseniormanagementpositionsinUnitrodeCorporation,3ComCorporationandMaxtorIrelandwherehewasGeneralManagerpriortojoiningAnPost.Heisanon-executiveDirectorofXilinxCorporation’sEuropeanBoardandheisChairmanofAnPostNationalLotteryCompany.

2. John Daly, a.C.M.a., M.SC.(MgMT.)Retail Operations DirectorMrDalyjoinedAnPostinDecember1988havingworkedpreviouslyasaManagementAccountantinFÁS.DuringtheearlypartofhiscareerwithAnPost,heworkedintheFinanceDirectorateasaManagementAccountant.HethenheldvariousseniorfinanceandmanagementpositionswithintheRetaildivisionbeforebeingappointedtohiscurrentpositioninOctober2006.HeisChairmanofThePrizeBondCompanyLimited.

3. Jack Dempsey, B.COMM., M.B.a., M.P.a.Company SecretaryMrDempseyjoinedthePostOfficein1968asanExecutiveOfficerintheDepartmentofPostsandTelegraphs.Duringhiscareer,hehasgainedwideexperienceinallaspectsofpostaloperationsandcommercialactivities,bothnationalandinternational,occupyingavarietyofseniormanagementpositionsacrosstheCompany.HewasappointedasCompanySecretaryinMarch2011.

4. Peter gallagher, B.SC., M.B.a., M.INST.DDirector of Strategy and Business ExcellenceMrGallagherjoinedAnPostinApril2007asHeadofStrategyandBusinessExcellence.PriortojoiningAnPost,hehadbeenaPartnerinPAConsultingGroup’sGlobalBusinessTransformationPracticewhereheledmajortransformationalandbusinessoperationalimprovementprogrammesforprivate&publicsectorclients.PreviousrolesincludeDirectorofStrategywithKPMGConsultingandBusinessOperationsManager(UK&Ireland)forDellComputerCorporation.

5. Pat Knight, M.SC.(MgMT.), f.C.I.P.D.Human Resources DirectorMrKnightjoinedAnPostinMarch2004asHumanResourcesDirector.Previously,hehadbeenGeneralManagerHumanResourcesatWaterfordCrystal,whichhejoinedin1986andwhereheheldseniorHRroles,bothinIrelandandtheUK.PreviousexperienceincludesworkasaPersonnelOfficerwithBordnaMónaplc.HeisaTrusteeoftheAnPostSuperannuationSchemesandadirectorofAirBusinessLimited.

6. Brian McCormick, B.E.(MECH.), M.B.a.Services DirectorMrMcCormickjoinedAnPostinMay2002asStrategyDirectorandwasappointedtohiscurrentpositionofServicesDirectorinOctober2003.PriorexperienceincludesCRHplcandMerrionCorporateFinancewherehewasaDirector.HeisaTrusteeoftheAnPostSuperannuationSchemesandChairmanofOneDirect(Ireland)LimitedandAirBusinessLimited.

7. Liam O’SullivanMails Operations DirectorMrO’SullivanjoinedAnPostin1985.Duringhiscareer,hehasgainedbroadexperienceacrossthefullrangeoftheCompany’sbusiness.HehasheldvariousseniormanagerialandprojectmanagementpositionsintheCompany.HewasappointedasMailProcessingDirectorinJuly2004andalsoservedaperiodasDirectorofCollection&DeliveryChangeProgrammesandOperations.HetookuphiscurrentpositioninApril2009.HeisaDirectorofGeoDirectoryLimited.

8. Peter Quinn, B.COMM., f.C.a., M.B.a.Chief financial OfficerMrQuinnjoinedAnPostinAugust2004.PriortothisheheldseniorfinancialandstrategicpositionsinPJCarrollandCompanyplcandMonaghanMushroomsLimited.HeisaCharteredAccountantandtrainedinpracticewithKPMG.HeisadirectorofAnPostNationalLotteryCompany.

9. Liam SheehanSales and Marketing DirectorMrSheehanjoinedAnPostin2000asGeneralManagerSales&MarketingandhewasappointedasSales&MarketingDirectorinOctober2006.HehasextensiveexperienceintheIrishfastmovingconsumergoodssectorandinbrandcreation,channelmanagementandsalesstrategy.HepreviouslyheldseniorSales&MarketingpositionsinProcter&GambleandinGuinnessandhewasCommercialDirectorwithErinFoods.HeisadirectorofThePrizeBondCompanyLimited.HeisalsoChairmanofTheGiftVoucherShopLimited.

10. Barney Whelan, B.SC., M.B.a., f.P.R.I.I.Director of Communications and Corporate affairsMrWhelanjoinedAnPostinJanuary2005.Havingspentmanyyearsintheaquacultureindustry,hewasresponsibleforpublicrelationsandbrandcommunicationsattheESB.HesubsequentlyheldthepositionofDirector,SalesandMarketingatTheFoodSafetyPromotionBoard.HewasappointedtohiscurrentpositioninOctober2006.


During 2012 the Company maintained its strategic focus, continuing to adapt internal structures, products, service offerings, work practices and workflows to the evolving business environment.

Ourstrategicinvestmentprogrammehaspositionedustocompeteatthehighestlevel,enablingustomeettheever-changingneedsofourcustomersnowandintothefuture.Equally,wecontinuetofocusonareaswhichcangeneratenewandenhancedrevenue.AnPostisnowamongtheworld’sbestpostalserviceprovidersintermsofservicequalityandweremaindedicatedtosustainingthispositiononanongoingbasis.

CHIeF eXeCUtIVe’s ReVIeW


WearemidwaythroughourambitiousChangeProgrammesandhavebuiltontheachievementsofpreviousyearsincluding:

• Areductioninannualisedoperatingcostsof€100m

• AcoreCompanyworkforcereductionof1,284fulltimeequivalents(FTE),whileincreasingmailsservicequalitytorecordlevels

• SubstantialgrowthintheturnoverofsubsidiarycompanieswhichincreasedtheircontributiontotheGroup

• Continuedstrongretailperformance

ThisapproachwillcontinueasAnPost,incommonwithotherglobalpostaloperators,dealswithdecliningmailvolumes,increasedelectronicsubstitutionandsignificantchangesinthebusinessenvironment.

financial performanceAGroupoperatinglossof€17.5mwasrecordedfortheyear(2012),againstaprioryearprofitof€2.2m.ThisisthefirsttradinglossincurredbytheGroupsince2003andisnotsustainableinthemediumterm.Thesinglelargestcontributingfactorhasbeentheunprecedenteddeclineintraditionalmaillargelydrivenbytheeconomiccrisis.TheCompanyhasexperiencedareductionof27%involumessincethepeakof2007.Thescaleofthedeclineissimilartothatseeninothercountries.

Mailsrevenuein2012amountedto€501m,1.1%lowerthan2011.TheCompanybenefittedfrompriceincreasesof€6.5mforUSOservicesweighingmorethan50gramsandcertainnon-USOproducts;a9%increaseinthevolumeofparcelsandpacketsandimprovedpricingoninternationalmailpaidthroughTerminalDues.Thevolumeoftraditionalmailfellby5.2%duringthecourseoftheyear;however,therateofdeclinewaslowerinthesecondhalfoftheyear.TheCompanyisbudgetingforafurther5%declineduring2013,whichwefeelisreasonablegivenrecenttrendsandtheongoingeconomicenvironment.

TheRetaildivisionperformedwellwithrevenueat€169mcomparedwith€171.6mthepreviousyear.ProductssuchasSterlingandDollarsalescontributed€4.4m,up13%on2011,compensatingforreducedincomefromtheNTMAcontract,whichcoverstheprovisionofStateSavingsproducts.

TheCompany’ssubsidiariesincreasedtheirrevenueto€111mfrom€80min2011reflectingsolidgrowthintheirrespectiveproductportfolios.EachisinastrongpositionwithintheirparticularmarketandtheybenefitfromtheirassociationwithAnPost.AsAvivaclosedtheirbranchnetwork,theadditionoftheirlocalbranchbusinesstoOneDirect,aswellasthecontinuedgrowthofTheGiftVoucherShoparepositiveindicatorsfortheyearahead.

Mails Quality of ServiceTheCompanyconsistentlyimprovedtheperformanceofnext-daydeliveryofsinglepiecedomesticmailwithsignificantimprovementoverthepreviousyear.Theseresultswereachievedagainstabackgroundoftheongoingre-engineeringofcollectionanddeliveryoperationsnationwideaswellasthemajorautomationengineeringprogrammeattheCompany’sMailsCentres.

QualityresultsforInternationalMailagainshowedastrongperformancewith97%ofmaildeliveredinIrelandwithinthreedaysofpostinginEuropeagainsttheEUPostalDirectiveTargetof85%andaEuropeanaverageof95.4%,and96.5%ofmaildeliveredinEuropewithinthreedaysofpostinginIreland.ThiscontinuestoplaceAnPostasoneoftheleadingperformersinEurope.

CHanGinG

Meeting the ever-changing needs of our customers

2012 Revenue€501M MaILs €169M RetaIL oPeRatIons €111M sUBsIDIaRIes


Strategic approachOurstrategicapproachtothechangingbusinessenvironmentoverthelastfewyearshasincludedspecificfocuson:• Costreductioninpayandnon-pay• Mailspriceadjustment

• Diversifiedandincreasedrevenue• Retail

Thedeliveryofeachofthesepillarsisrequiredforourbusinessmodeltosucceed.

Duringtheperiodofthecurrentfiveyearplanwewillseeacontinueddeclineintraditionalmailvolumesandrevenue.Thecurrentphaseoflossesisregrettablebutwillbeaddressedwithinthefiveyearplanwhilemitigatingmeasures,includingnecessaryactiononmailspricing,takeeffect.TheCompanyhasalreadyachievedapermanent€100mreductioninannualisedpayandnon-paycostsandwillbuildonitstrackrecordofprogressinthisareaintheyearstocome.

Change ProgrammeIntheperiodsince2008,thestafffulltimeequivalent(FTE)numbersinthecoreCompanydeclinedby1,284andtheannualisedlabourcosthasbeenreducedby€53.4m.TheaveragestaffFTElevelin2012was396lowerthan2011.TheCompanywillcontinuetoimplementitsplannedstaffFTEreductionprogrammethisyearandintheyearstocome.Thecurrentplanrequiresastaffreductionof2,600FTEsduringtheperiod2009–2016.Thisequatestoanaverageannualreductionof325FTEs.Wearecurrentlyhalfwaythroughthisprogrammeandanaveragestaffreductionof321FTEsperannumhasbeenachieved.

Theprogrammehasresultedinextensivenon-paysavingsof€35.5min2012(i.e.22.5%lower)whencomparedto2008.Whilstweexperiencedinflationinsomecostheadingssuchasfuelandelectricityduringtheyear,thiswasoffsetbysavingsinprofessionalservicesandotherareas.

CapitalinvestmentinfurtherautomationwithintheMailsbusinesscontinuedduring2012withtheinstallationofnewprocessingequipmentatourPortlaoiseandDublinMailsProcessingCentres,aswellastheupgradeofequipmentatCorkandAthloneMailsProcessingCentres.Thisprojectisalreadydeliveringsignificantimprovementsinreadratesallowingmail,ofvariouscategories,tobesortedtothelevelofthepost-person’sdeliveryroute,therebycontributingtocostsavings,efficienciesandstaffFTEreductions.

TheapplicationofdiversetechnologysolutionscontinuestounderpintheCompany’sChangeprogrammeandbusinessstrategy.During2012,astateoftheartSAN(StorageAreaNetwork)wasdeployedtomeetincreasingdatastoragerequirements.Some4,500PostalOperativeswereequippedwithmobilescanningdevicesallowingthecaptureofcustomersignaturesatpointofdeliveryandenablingreal-timeuploadofvitalinformationtotheTrackandTracesystem.

WithintheRetailnetwork,investmentwasfocusedonnewproductinnovation,systemsimprovementandtheupgradingofpremises.AnPostwillcontinuetomaximisetheuseoftechnologyasanintegralpartofitsapproachtonewbusinesschallengesinaneverchanginganduncertainenvironment.

PensionsTheAnPostpensionschemedeficitimprovedto€285mat31December2012,downfrom€484m,mainlyduetoimprovedinvestmentperformance.ActivenegotiationsareinprogresswithourUnionsinordertomeettheMinimumFundingStandard.

Regulation and PriceTherewasnopriceadjustmentforpostalserviceswithinthescopeoftheuniversalpostalservicerelatingtopostalpacketsweighinglessthan50gramsduringtheperiodfromMarch2007toDecember2012.ApriceapplicationseekingreasonablepriceincreaseswassubmittedtoComReginFebruary2012.

On1March2013,ComRegapprovedanincreaseof5cinthestandarddomesticletterratefrom55cto60c.Withthisincrease,AnPostpricingcontinuestocompareveryfavourablywithpostalserviceprovidersintheEU,includingtheUK,France,GermanyandBelgium.

CHIEF EXECUTIVE’S REVIEW Continued

CompetinG

Reducing operational costs and investing in infrastructure

€53.4M ReDUCtIon In LaBoUR Cost sInCe 2008 4,500 PostaL oPeRatIVes eQUIPPeD WItH MoBILe sCannIng DeVICes


GiventheunprecedentedandpermanentdeclineinMailsvolumesandrevenueto-date,largelydrivenbytheeconomicdownturn,Mailspricesarenotcurrentlyatasustainablelevel.ThereforeregularpriceadjustmentsalongwithmajorcostreductionandrevenueenhancementarenecessaryandformakeypartoftheCompany’sbusinessplan.

TheCommunicationsRegulation(PostalServices)Act,2011providesfortheintroductionofaPriceCapMechanismforserviceswithinthescopeoftheUniversalServicewhereComRegisoftheopinionthatthereisnoeffectivecompetitioninthemarketforthesupplyofthepostalserviceconcerned.

ThePriceCapMechanismmeansanoveralllimitontheannualpercentagechangeinpricesbasedontheannualpercentagechangeintheConsumerPriceIndex(CPI)andincludesanadjustmenttoincentivisetheefficientprovisionoftherelevantservices.TheintroductionofanappropriatePriceCapMechanismisessentialtotheachievementoftheCompany’sobjectiveofsecuringregularandnecessarypriceadjustmentsintheyearstocome.

TherewereanumberofdevelopmentsinrelationtotheregulationofQualityofServiceduring2012.InFebruary,ComRegservedlegalproceedingsonAnPostunderthetermsoftheEuropeanCommunities(PostalServices)Regulations2002,seekinganorderfromtheHighCourtthatAnPostcomplywiththe94%nextdaydeliverytargetforsinglepiecemail.Italsosoughttoimposeafinancialpenaltyforallegednon-compliancewiththeQualityofServicestandard.

AnPostisvigorouslycontestingthisactionthroughtheHighCourtasalsoreportedinlastyear’sAnnualReport.Ourinternalmetricscontinuetoshowasignificantlyhigherlevelofperformance.AnPostbelievesthatthewayforwardisanewsingledomesticmonitorofperformance,agreedwithComReg,independentlyoperatedandaudited,whichwouldalsoprovidetheCompanywithtimelydiagnosticinformation.

Inlate2011,ComRegissuedAnPostwithadirectiontoprovidenext-daydeliveryofmailinrespectoftwoaddresses,bothofwhichwereforthesamepropertyandneitherofwhichwasavalidpostaladdress.AnPostsuccessfullybroughtJudicialReviewproceedingsofComReg’sDirectionand,inOctober2012,theHighCourt,agreeingwithAnPost,madeanorderquashingComReg’sDirectionandgrantedthereliefssoughtbyAnPost.ComRegsubsequentlyindicatedthatitintendstoappealtheHighCourtDecisiontotheSupremeCourt.

Amajorprogrammehasbeensuccessfullyimplementedduringthelastnumberofyearstoimproveservicequality.ThisisreflectedbythehighlevelofperformanceshownbytheindependentQualityofServicemonitoringofourinternationalmailstreams.TheCompanywillcontinuetofocusonachievingresultswhichplaceitamongtheworld’sbestperformers.

New revenueThegenerationofadditionalincomestreamsisalsoafundamentalpartofthestrategyoftheGroup.Thiswillcontinuetobeachievedbytheadditionofnewproductsandservicesinthemailsandretailbusinessesaswellasthesubsidiarycompanies,allofwhicharecloselyalignedwithAnPost’scoreactivity.TheCompanyhasallocatedcashinitsforecasttofacilitatetheappropriateinvestmenttoenablethesecompaniestoachievetheirplansandtakeadvantageofopportunitieswhichwillariseintheirsectors.AmbitiousstretchtargetshavebeensetandourperformancetodateisevidenceoftheabilityoftheGrouptosucceedinthiscontext.

TheCompanyisalsoproudofitsachievementsonbehalfoftheGovernmentinmanagingtheStateSavingsportfolio,theNationalLotteryCompanyandinservicingthecustomersoftheDepartmentofSocialProtection.TheseactivitiesservetoillustrateAnPost’ssuccessfultrackrecordacrossdiversesectors.TheincreaseinStateSavingsthroughthepostofficefromabookof€6billionin2007toalmost€17billiontodayhasbeenverysignificant.Inasimilarmannerthe€225mraisedin2012throughtheNationalLotteryforgoodcausesisalsoanimportantachievement.ItisworthnotingthattheNationalLotterycontinuestorankamongthebestperforminglotteriesintheworldasmeasuredbyLaFleur’sandAnPostlooksforwardtoparticipatingintheforthcomingNationalLotteryLicencebidprocess.

ContributinG

Partnering Government and commercial organisations

25.2 MillionBILLPay tRansaCtIons on BeHaLF oF 216 CoMMeRCIaL entItIes

€9,445 MillionVaLUe oF state BeneFIts PaID By an Post on BeHaLF oF tHe DePaRtMent oF soCIaL PRoteCtIon


Servicing government businessThe1983ActsetsoneoftheobjectsofAnPostas“ToprovidecounterservicesfortheCompany’sownandGovernmentbusinessandprovidedtheyarecompatiblewiththeseservicesandwiththeprincipalobjectssetout…forothersastheCompanyseesfit.”AnPostisactivelyparticipatinginthecurrentDepartmentofSocialProtection“Provisionofcashservices”tender.TheCompanyisconfidentthatitwillsubmitthestrongestofferandlooksforwardtoapositiveoutcomeforallconcerned.

AnPostiswellpositionedtoprovidemoreGovernmentservicesthroughitsnetwork.Werunthelargestfinancialservicesnetworkinthecountry,comprisingmorethan1,150outletsmainlyoperatedbyindependentretailersemployingover3,000peopleintheirlocalcommunities.Thisnetworkofferstheopportunitytoaccessthe1.7mcustomersusingthepostofficeonaweeklybasis.Itprovidesarangeoffinancialservicesandiscentraltotheday-to-dayfinancialplanningofmanyofourcitizens.Thepostofficeremainsoneofthemosttrustedinstitutionsinthecountry.

Assomebanksseektorationalisetheirbranchnetworkstheyhaverecognisedthatmanyoftheirretailtransactionscouldbedonemoreefficientlyandcosteffectivelywithinthepostofficenetwork.Thisarrangementallowsaccesstoavariablecostmodelfortransactionsandofferstheircustomersbankingservicesinourcommunitybasedretailnetwork,sixdaysaweek.Thenumberoftransactionscontinuestogrowonanannualbasisprovingthatthereisahighlevelofcustomerengagementwiththeseservices.In2012approximatelythreemilliontransactionswereprocessedinthiswayasweextendedourserviceprovisionforAIBinparticular,andalsoforDanskeBank.Inrecentyearstherehasbeenanincreaseinthenumberofservicesavailablethroughthelocalpostoffice.TheadventofOne4allGiftCards,postfone,andSterlingandDollarsaleshasbeenwelcomedbyourclientsandcustomersalike.TheseservicescontinuetoexperiencesolidgrowthdespiteIreland’songoingdifficultretailenvironment.

AsmanyGovernmentDepartmentscontinuetoencourageonlineretailtransactionstheyarealsofacedwithmuchhighercostsfortheremainingofflinetransactions.Asimilaropportunityisavailabletothesebodiestoutiliseourlocally-basednetwork,toimproveaccesstoGovernmentservicesanddeliversignificantcostsavingsbyavailingofthevariablecostmodelfortransactionsasdescribedabove.OnecaseinpointisthedevelopmentinmeetingtheGovernment’sintentiontoachievefinancialinclusionthroughtheprovisionofaBasicBankAccount.TheCompanyisconfidentthatitcanplayapivotalroleinGovernmentachievingthisbyutilisingthepostofficenetwork.

ThepostofficenetworkhasdeliveredanexcellentservicetotheDepartmentofSocialProtectionandtheirclientsfordecades.Inmanyruralandurbanareas,thepostofficeistheonlyoutletofferingarangeofaffordableandeasilyaccessiblefinancialservices.Theresultsofarecentpilotprojectsuggestthatfinancialinclusioninitiativeswillnotsucceedunlessdeliveredthroughtheretailnetworkofchoice–thepostoffice.

Itisworthnotingthatthroughoutthisperiodofadjustment,rationalisationandinvestment,theCompany’sreputationanditsstandingamongthepublic,asmeasuredbyMillwardBrown,hasimprovedsteadily.Allreputationparametershaveimprovedinastatisticallysignificantmanneryear-on-year.

Ireland’songoingeconomicsituationpresentsanextremelydifficultbusinessenvironment.AnPostwilladdresstheconsequentchallengeswithdeterminationduringthiscomingyearandthereafter.TheCompanywillcontinuetoadaptitsstructuresandresourcestofacethechangingbusinessreality.Thedevelopmentofinnovativeproductsandservicesisacentralpartofthebusinessstrategyasisthecontinuedprovisionofahighquality,value-for-money,relevantandcustomer-focussedservice.

Finally,IwishtothanktheMinisterforCommunications,EnergyandNaturalResources,PatRabbitteT.D.,andhisofficialsfortheirassistanceandsupportduring2012.

Donal Connell, Chief Executive27March2013

CHIEF EXECUTIVE’S REVIEW Continued

DoinG more

Running the largest financial services network in the country1,150outlets 1.7 Million CUstoMeRs WeekLy 6oPen 6 Days a Week


Successisbeingachievedbyanumberofbusinesseswhichcantakeadvantageoftheexpertiseandpresenceofthecorecompany.Thefollowingaretheprimarysuccessesinthesubsidiaryarena:

National Lottery CompanyAnPostisveryproudoftheachievementsofthisbusinessoverthe26yearsofitsexistence.ThemanagementandstaffhavedevelopedahighlysuccessfulCompanyandthefundsraisedhaveconsiderablyassistedbeneficiariesacrossthecountry.€225mwasdistributedtogoodcausesin2012.

TheGovernmentwillissueatenderfortheawardingofthenextLotteryLicenceinthecomingmonths.AnPostlooksforwardtoparticipatingintheforthcomingNationalLotteryLicencebidprocess.

Air BusinessThisMailssectorbusiness,basedintheUKhasseenconsiderablegrowthinthepasttwoyears.Turnoverin2012exceeded€75m.Thisbusinessconcentratesonfulfilment,subscriptionmanagementanddistribution,throughinternationalmailchannels,primarilyforlargeinternationalpublishingclients.CurrentcustomersincludesuchprestigioustitlesasTheEconomist,Informa’sLloydsList,theBritishMedicalJournal,CountryLife,Vogue,TheLancet,NewScientistandvariousotheracademicandeducationalpublications

The Gift Voucher ShopTheOne4allgiftcardisthegiftvoucherofchoiceinIreland.Innovationandproductdevelopmenthavekeptthistotheforefront.Inaddition,expansionintotheUKhasaddedtothesizeofthisbusiness.ThissubsidiarycontributedpositivelytotheoperatingresultattheGroupandisaverysignificantpartoftheCompany’sretailoperations.

One DirectOneDirecttookoverthepersonallines(motorandhome)insurancebusinessformerlyconductedbyAvivathroughitsownbranchnetwork.Thisrepresentsasignificantincreaseinbusiness.ItfacilitatesconsolidationofthedistributionchanneloperatedbyOneDirectfromitscallcentreinAthlonewiththephysicalpostofficenetwork.Thisaddedbusinesstogetherwithastrongperformanceinalllinesofinsurance,motor,homeandlifegivesadditionalstrengthtothebrandinthemarket.

PostpointThispaymentschannel,inadditiontothepostofficenetwork,offersourcustomersandproductsuppliersalikeaveryvaluableservice.Thereissomedeclineinthetraditionalmobiletop-upmarketandmarginshavebeenreducedforallpaymentcompaniesinthissector.Thischannelsawtransactionsamountingto€250minvalueduring2012.New,innovativeproductdevelopmentsandchangesintechnologyaremaintainingrelevanceandtheGroupiscommittedtodevelopmentinthissector.

SUbSIdIaRIES


group turnover for 2012 was €807.3m, marginally ahead of the previous year’s €806.7m.

TheGroupoperatinglossof€17.5mwasimpactedbyfurtherdeclineincoremailsvolumes,delaysinsecuringapprovalfromtheCommissionforCommunicationsRegulation(ComReg)fornecessarypriceadjustmentsandsomedelaysinimplementationofourcostreductionprogrammes.PostalOperatorsdealingwiththeparticularchallengesofthepostalmarketmustbeabletopriceproductsandservicesaccordingtomarketforces,andinthisregardAnPostlooksforwardtothesuccessfulintroductionofthenewComRegpricecapmechanismin2014.Theseresultsalsoreflectamostchallengingdomesticeconomy.

2012 €m

2011 €m

Turnover 807.3 806.7

Groupoperating(loss)/profit (17.5) 2.2

Netassets(excludingpensionliability) 297.3 319.0

Thefinancialyear2012endedwithaGroupOperatingLossof€17.5mcomparedtoaGroupOperatingProfitof€2.2mthepreviousyear.However,comparisonofthetwoyearsisskewedbytheexceptional€28mrevenuegeneratedbytheGeneralElectionandPresidentialElectionmailingsin2011.

RevenueOverallmailsrevenuein2012totalled€501m,1.1%lowerthan2011.Thevolumeoftraditionalmailreducedby5.2%inthecourseoftheyear,withtherateofdeclineslowingsignificantlyfrom6.8%inthefirsthalfoftheyearto3.6%inthesecondhalf.

Compensatingtosomedegreefortheabovementioneddeclineintraditionalmailvolumewasgrowthinparcelsandpacketvolumes,priceincreasesinsomenon-USOservicesandnewimprovedratespayabletotheCompanybyinternationalpostaladministrationsandmailoperatorsfordeliveringtheirmailinIreland.

Revenueintheretaildivisionheldupwellat€169mcomparedwith€171.6mthepreviousyear.ThevalueofStateSavingsreached€16.3billionbytheendofDecember2012,anincreaseof€2.2billionontheprioryear.Othernewretailincomestreamsshowedencouraginggrowthincludingcommission-freeSterlingandDollarsalesandadditionalagencyservicesforAIB,DanskeBankandotherfinancialservicesandutilityproviders.

SubsidiariesRevenuefromAnPostsubsidiarybusinessesincreasedto€111mfrom€80m,generatingaprofitbeforetaxandgoodwillof€8.5m.Thisreflectssolidgrowthintheprimarysubsidiarieswhichcontinuetoperformstronglyintheirrespectivemarketsandwhichbenefitgreatlyfromtheirassociationwiththepostofficenetwork.ThetakeoverbyOneDirectofAviva’slocalmotorandhomeinsurancebranchbusiness,astheyclosedtheirbranchnetworkintheAutumn,andthecontinuedgrowthofTheGiftVoucherShop(One4All)arepositiveindicatorsfortheyearahead.Profitmarginsremainstrongacrossthebusinesses.

FInanCIaL ReVIeW


PricingOngoingpriceadjustmentscoupledwithongoingcostreductionandnewrevenuesareanessentialpartoftheCompany’sbusinessplan.TheCommunicationsRegulation(PostalServices)Act,2011providesfortheintroductionofaPriceCapMechanismforserviceswithinthescopeoftheUniversalServicewhereComRegisoftheopinionthatthereisnoeffectivecompetitioninthemarketforthesupplyofthepostalserviceconcerned.ThePriceCapMechanismmeansanoveralllimitontheannualpercentagechangeinpricesbasedontheannualpercentagechangeintheConsumerPriceIndex(CPI)andincludesanadjustmenttoincentivisetheefficientprovisionoftherelevantservices.TheintroductionofanappropriatePriceCapMechanismisessentialtotheachievementoftheCompany’sobjectiveofsecuringregularandnecessarypriceadjustmentsintheyearstocome.

CostsChangeprogrammeimplementationcontinuedapaceoverthecourseoftheyear.Intheperiodsince2008thecorecompanyhasachievedanFTEreductionof1,284andthecostoflabourhasreducedby€53.4m.Intheyear2012labourhoursequatedto9,641FTE’s.Thiswas396lowerthanin2011andreflectstheimpactofongoingchangeprogrammesonthecostbase.

Corenon-paycostswerereducedby€4min2012.Therehasbeeninflationinsomeareassuchasfuelandelectricitywhichisbeingoffsetbysavingsinthecostofprofessionalservicesandothercostcategories.Additionalcostswereincurredintheservicingofincrementalparcelandpackethandlingwhereweareincreasingourmarketshareofnationalandinternationalbusiness.

CashThecashresourcesoftheGroupat31December,2012were€112m(€150min2011).Duringtheyear€28mwasinvestedincapitalexpenditureand€17minvoluntaryservice/voluntaryearlyretirementschemes.Thecashimpactofthetradinglossof€17.5mismitigatedbythenon-cashdepreciationandamortisationchargesof€25m.

fixed assetsCapitalexpenditurein2012amountedto€28m.Therewerenosignificantassetdisposalsduringtheyear.Furthercapitalspendofthesamemagnitudeisplannedfor2013,includingthecompletionofinvestmentinthelatestgenerationofmailsprocessingequipment.

Pension SchemesTheAnPostbalancesheetat31December2012includesapensiondeficitof€285m(€484min2011).Assumptionsthatareinlinewithindustrynormsareusedinthecalculationofchargesandthebalancesheetdeficit.Theseareprimarilyadiscountrateof4%,longrunpay/pensioninflationof1.5%andinvestmentreturnof7.5%forequities,3%forbondsand4%forotherassetclasses.

PensionSchemessuchasthedefinedbenefitschemeatAnPosthavetoaddresstherequirementsofthePensionsBoardforMinimumFundingStandards.AnPostexpectstobeinapositiontomakethechangesnecessarytotheschemesothatitcanattainthenecessaryminimumfundingstandard,aslaiddownbylegislation.

Outlook2012isthefirstyeartorecordanoperatinglosssince2003.Thisisnotsustainableinthemediumterm.Implementationoftheongoingchangeprogrammes,achievingpricere-alignmentandthegrowthofnewrevenuestreamsincoreandsubsidiarybusinessesarethekeydriversinachievingareturntoprofitability.


FINaNCIaL REVIEW CONTINUED

UnIVeRsaL seRVICe

The Communications Regulation (Postal Services) act 2011 (‘the act’) was enacted in august 2011.

Requirements of the USO (Universal Service Obligation)UnderSection17oftheAct,AnPostisdesignatedasaUniversalPostalServiceProviderforaperiodof12years.

UnderSection16oftheAct,UniversalPostalServicemeansthatoneveryworkingday,exceptincircumstancesorgeographicalconditionsdeemedexceptionalbyComReg,thereisatleast:

(i) oneclearance,and

(ii)onedeliverytothehomeorpremisesofeverypersonintheStateor,asComRegconsidersappropriate,undersuchconditionsasitmaydeterminefromtimetotime,toappropriateinstallations.

Universalserviceshallincludethefollowingminimumfacilities:

(a)theclearance,sorting,transportanddistributionofpostalpacketsupto2kgs;

(b)theclearance,sorting,transportanddistributionofpostalparcelstoaweightlimittobespecifiedbyorderofComReg(orintheabsenceofthis20kgs);

(c) thesorting,transportationanddistributionofparcelsfromotherMemberStatesupto20kgsinweight;

(d) servicesforregistereditems;

(e)servicesforinsureditemswithintheStateandtoandfromallcountrieswhich,assignatoriestotheConventionoftheUniversalPostalUnion,declaretheirwillingnesstoadmitsuchitemswhetherreciprocallyorinonedirectiononly;and

(f) postalservices,freeofcharge,toblindandpartiallysightedpersons.

AsrequiredbySection16(9)oftheAct,inJuly2012,ComRegmaderegulationsspecifyingtheservicestobeprovidedbyAnPostrelatingtotheprovisionoftheUniversalPostalService.TheCommunicationsRegulation(UniversalPostalServices)Regulations,S.I.280of2012,whichsetsouttheseservices,isavailableonwww.irishstatutebook.ieorwww.comreg.ie.

access to Universal ServicesAnPostprovidesaccesstoitsservicesthroughitsnetworkof57Companypostoffices,1,095postmaster-operatedpostofficesand166postalagents.Inaddition,some1,188retailpremisesarelicensedtosellpostagestamps,asactivelicensedagents.Tofacilitatephysicalaccesstotheservice,approximately5,000postboxesaredistributedwidelythroughouttheState.Thereare43designatedacceptancepointsforbulkmailservices.


TariffsThefollowingisasummaryofthepricesforstandardservicesweighingupto50gwhichwereapplicableduring2012.†

Ireland & NI Letters (up to C5)

Large Envelopes

Packets Parcels

StandardPost 55c54cifCeadúnas

ormeter

95c €2.20 €6.50

RegisteredPost* €5.25 €5.25 €5.25 €10.50

* Thefeepayableforthebasicregisteredservicecoverscompensationuptoamaximumof€320.Furthercompensationuptoalimitof€1,500isavailablefor€4anduptoalimitof€2,000for€5basedondeclaredvalueattimeofposting.

International Destinations

Letters (up to C5)

Large Envelopes

Packets Parcels

StandardPost 82c €1.50 €2.70 GB €18.25 RoW €22.00

RegisteredPost**

€5.17 €5.85 €7.05 GB €23.00 RoW €27.00

**Availabilityofservicedependentonpostaladministrationindestinationcountry.Compensationupto€320inGB;€150inEurope;€100forparcelsand€35forlettersoutsideEurope

†Witheffectfrom2April2013,AnPostchangeditstariffsforStandardPostwithintheUniversalService.Thetariffsforitemsweighingupto50gwereincreasedandthesetariffsnowapplytoitemsupto100gresultinginareductionintheprevioustariffforitemsweighingbetween51-100g.ThenewStandardPostratesforIrelandandNorthernIrelandforitemsweighingupto100gare60cforletters,€1.05forlargeenvelopesand€2.40forpackets.Discountsapplyifpaymentismadebymeter.Thetariffsforallotherdestinationsforitemsweighingupto100gare90cforletters,€1.65forlargeenvelopesand€3.00forpackets.InternationalStandardparcelpriceswerealsoincreased.

AfulllistofcurrentUSOtariffsisavailableintheGuidetoPostalRates(seewww.anpost.ie)

Quality of ServiceInternationalThequalityperformancestandardforthedeliveryofintra-Communitycross-bordermailwaslaiddowninthePostalDirectives(97/67/ECasamended)andisincludedinSchedule3oftheAct.Thequalitystandardforpostalitemsofthefasteststandardcategoryisasfollows:

D+3: 85% of items; D+5: 97% of items,whereDreferstothedayofposting.

DomesticTheActrequiresComRegtosetquality-of-servicestandardsfordomesticuniversalservicemailwhichmustbecompatiblewiththoseforintra-Communitycross-borderservices.ComReghavesetaquality-of-servicetargetfordomesticsinglepieceprioritymailasfollows:

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


UNIVERSaL SERVICE CONTINUED

Quality monitoringMonitoringofperformanceagainsttheinternationaltargetsiscarriedoutbyResearchInternationalonbehalfofInternationalPostCorporation(IPC).MonitoringofthedomesticqualityofserviceiscarriedoutbyIpsosMRBIonbehalfofComReg.

InFebruary2012,ComRegservedlegalproceedingsonAnPostunderthetermsoftheEuropeanCommunities(PostalServices)Regulations2002,seekinganorderfromtheHighCourtthatAnPostcomplywiththe94%nextdaydeliverytargetforsinglepiecedomesticmailandseekingtoimposeafinancialpenaltyonAnPostforallegednoncompliancewiththequalityofservicestandard.AnPostisdefendingthisactionvigorously.

Customer Complaints

AnPostisrequiredtomaintainrecordsofcustomercomplaintstakingintoaccounttherelevantEuropeanstandardIS:EN14012:2003.Thetableprovides,inrelationtomail,abreakdownofwrittencomplaintsreceivedfromcustomersduring2012.Thetotalcontinuestorepresentaminutefractionoftheentiremailtraffichandledduringtheyear.

Written complaints received from customers:

Itemslostorsubstantiallydelayed 18,287

Itemsdamaged 980

Itemsarrivinglate 351

Mailcollectionordelivery:

Timeofdelivery 347

Failuretomakedailydeliverytohomeorpremises 115

Collectiontimes/Collectionfailures 2

Misdelivery 486

Accesstocustomerserviceinformation -

Underpaidmail 145

Tariffsforsinglepiecemail/discountschemesandconditions -

Changeofaddress(Redirections) 919

Behaviourandcompetenceofpostalpersonnel 22

Howcomplaintsaretreated -

Other(notincludedinabove) 1,789

Total 23,443

Includedinthetotalfigurearecomplaintsaboutregistereditems,whichnumber5,563.

In2012,475,414telephonecallsweremadetoAnPostCustomerServices.Mostofthesewereroutineorgeneralenquiriesratherthancomplaints.

TheAnPostComplaintandDisputeResolutionProceduresaresetoutin‘GettingitSorted,’whichisavailableonourwebsite,inretailoutlets,andfromourCustomerServicesCentre.WealsohaveaCustomerCharter,containingspecificpledgestocustomersregardingourservices.

further InformationAdditionalinformationinrelationtoservicesprovidedbyAnPostisavailablebyphoningAnPostCustomerServicesonCallSave1850575859,[email protected],byvisitingwww.anpost.ie,orbycallingintoalocalpostoffice.


Sustainability at an Post is firmly based within ongoing business activity, aimed at mitigating our environmental impact, improving quality of life for our customers and enhancing our business offering.

EnvironmentFollowingafouryearimprovementprogramme,targetingourcarbonperformance,AnPosthasachievedsignificantcarbonreductionacrossourbuildingsandfleet.Giventherelativelylargebuildingstockandfleetsize,thesustainabilityprogrammeconstitutesimprovementandinnovationacrossarangeofopportunitiestomakegainsincarbonsavings.

OurmembershipoftheInternationalPostCorporation,EnergyManagementandMonitoringStandard(IPCEMMS),hasprovidedaneffectivereportingtemplatesince2009.

ThissystemofbenchmarkingperformanceamongmemberPostsallowsustodrivechangewithinthebusiness,evaluatingourCompanyacrossarangeofindicators.Ourparticipationandperformanceresultsarefullyauditedandpublishedannuallyasasectorwide,sustainabilityreport.

WithinIPCEMMS,wehaveprogressedtomidrankingintermsofbothourcarbonandenergyuse.Thisinturnplacesuswithinrangeofachievingthenationalpublicsectorenergyconsumptiontargetof33%reductionbeforetheyear2020.InthisregardwebeganannualreportingofourenergyconsumptiontotheDepartmentofCommunications,EnergyandNaturalResourcesin2012.

In2013weaimtoimproveourIPCEMMSrankingandmakeevenbetteruseofenergybydevelopinganenergymanagementsystemspecifictotheCompany’sneeds.

TheCompanybeganpreparatoryworktoimplementISO50001,EnergyManagementSystemduring2012.Weaimtoachieveaccreditationbyquarterthree,2013.Webelievewewillbethefirstpostaloperatortoachievethisstandard,whichprovidesuswithaframeworkto:

• Developpolicyformoreefficientenergyuse

• Fixtargetsandobjectivestomeetpolicy

• UsedatatobetterunderstandandmakedecisionsaboutourCompany’senergyuse

• Measuretheresults

• Reviewpolicyeffectiveness

• Makecontinuousimprovementsintheareaofenergymanagement

ItisenvisagedthatthescopeofISO50001willbeextendedtoincorporateourtransportfunctionin2014.

sUstaInaBILIty

In 2013 we aim to improve our IPC EMMS ranking and make even better use of energy by developing an energy management system specific to the Company’s needs.


Energy UseThevastmajorityoftheCompany’senergyusageiscomprisedof:

• Heatingandlightingourfacilities

• Fuelconsumptionwithinourtransportfleet

In2012AnPostconsumed122.15GWhofenergythroughouttheCompany.Thebreakdownofwhichis:

• 22.5GWhofelectricity

• 20.7GWhoffossilfuelsforheating

• 79.15infossilfuelsforTransport.

Throughout2012wehavecontinuedworkingtowardstheCompany’sstrategictargetofa33%reductioninkWhrsand20%reductioninCO2byundertakingtheinitiativesandprogrammesidentifiedbelow.

• Investmentinbettercontrolofourlightingsystems,whichresultedinaconsiderablesavingof350MWhrs

• FurtherupgradestotheBuildingManagementSystemwereimplementedinordertoimprovecontrolofourenergyconsumptionintheGPO.TheBuildingManagementSystem(BMS)projectwasrolledouttoBaldoyleDeliveryServiceUnit(DSU)andChurchtownDSUsaving160MWhrs

• TheCompany’sheatingprojectwasrolledouttotenofficesresultingin200MWhrssavings

• AligningourEnergyManagementSystem(EnMS)withISO50001

• AnenergyinitiativefocusingonheatingwaspilotedinAthloneMailsCentrewithinitialgoalsachieved,energysavingsof400MWharetargetedbyend2013

• Incorporatingenergyefficiencyinitiativesintoallnewbuildingworks

Actions planned for 2013:AnPostiscommittedtoimprovingitsenergyandCO2reductionbyundertakingthefollowinginitiativesfor2013:

• AchievingCertificationtoISO50001.

• Investingfurtherinlightingupgradesthroughoutourpropertyportfolio.

• Therolloutoftheenergyimprovementprojects

• Heatinginitiativestargetedatourtop30energyusers

• TemperaturecontrolmeasuresintroducedtoallourMailsCentres

• Asystemofinternalheatingtimerstobeinstalledinthemajorityofouroffices

• Asystemofheatingcontrolsincorporatingexternal/ambienttemperaturesensorsamonghighenergyusers.

• SupportingourlocalofficestoimplementaCompany-widebenchmarkingsystemforenergyuse,toidentifyenergyimprovementopportunitiesineachofficeandtocontributetoouroverallenergyperformancetargets.

Eco-driving challengeCollectionandDeliverystafffromaroundthecountryparticipatedintheinauguralAnPostEcoDriverChallenge.Theobjectiveoftheeventistoencouragesustainablethinkingamongourdrivers,enhanceemployeeengagementanddemonstratethateco-drivingisgoodforboththeenvironmentandourbusiness.

Throughout 2012 we worked towards our strategic target of a 33% reduction in kWhrs and 20% reduction in CO2 use.

SUSTaINabILITy CONTINUED


Eco-cleaning productsTheCompanyhascompletedonefullyearofusinganewrangeofenvironmentallyfriendlycleaningandwashroomconsumables,havingimplementedacohesivenationwidepurchasingpolicyforallAnPostproperties.Thebenefitsoftheproductrangeincludevastlyreducedpackaging,transportandwaste.TheproductisalsocertifiedwiththeEUeco-label,theEUflower.

WorkplaceDiversity AnPostisoneofelevenfoundingorganisationstohavesignedthefirstDiversityCharterIreland,markingourvoluntarycommitmenttoeffectivediversitymanagement,promotingequalityandpreventingdiscriminationonallnineequalitygroundswhichincludedisability.

AnPosthaslaunchedanewEqualityandDiversitysiteonourIntranetwhichpresentsanextensiveresourceofinformationrelatingtoEqualityandDiversityissuesandlegislation;Disability;Policydocuments;Gay/Lesbian/Bisexual/Transgendertopics;andWork-Life-BalanceinitiativeswithinAnPost.

TheaimofthissiteistopromoteanddevelopawarenessofEqualityandDiversityissuesandtohighlightrelatedtopicswhichcanimpactonouremployees.

Disability Equality eLearningAnPostcommencedtherolloutoftheNationalDisabilityAuthority’sDisabilityEqualityeLearningcourse,whichwasproducedwiththeparticipationofpublicservicebodies(includingAnPost).

Basedonthesubjectofgoodcustomerservice,thecoursefocusesonchangingattitudesinordertoeliminatebarrierswhichrestrictaccesstoimportantfacilities,servicesandinformationforthosewithadisability.Thetrainingcoursehelpstodevelopheighteneddisabilityawareness–anawarenesswhichisencompassedinourcorevalues,“RespectandPersonalAccountability”and“RespectedCorporateCitizen”.

ThiscourseassistsAnPostinfulfillingitsobligationsinlinewithassociatedIrishlegislation(i.e.DisabilityAct2005;EqualityStatusAct2000,EqualityAct2004;andtheEmploymentEqualityActs1998to2011).

Community Welaunchedourrevisededucationprogrammein2012withthearrivalofanpostschoolbag.ietoprimaryandsecondaryschoolsnationwide.

anpostschoolbag.ieisanonlineeducationresourcededicatedtoinformingprimaryandsecondarylevelstudentsandteachersaboutthebreadthofAnPost’sinvolvementinIrisheconomic,environmentalandcommunitylife.

anpostschoolbag.ie is an online education resource dedicated to informing primary and secondary level students and teachers about the breadth of an Post’s involvement in Irish economic, environmental and community life.


SUSTaINabILITy CONTINUED

Theanpostschoolbag.ieresourceistailoredtoschools’owntechnologicalcapability–whiteboardsandPCs.ContentfocusesonthefullrangeofAnPost’smailsandretailbusinessservices,whiledeliveringclassroomactivitiesdirectlylinkedtothecurriculum.ResourcesaredesignedtocreativelyhighlightAnPost’scommitmenttosustainabilityandcommunity.AllinformationisavailableinbothEnglishandIrish.

An Post CyclingAnPostistheleadingsupporterofIrishCycling,apresencewehavebuiltonoversixyearsofrealcommitmenttothesport.Wearemorethanasponsorofcycling-wehaveearnedtheroleofvaluedpartnerineachoftheeventswesupport.

Wehavepioneeredabusinessledapproachtomaximisingparticipationandaudienceforthesportateverylevel.

Weremainoptimisticthatoursupportwillencourageothercommercialsponsorstogetinvolvedwiththesport.Thiscommercialapproachtooursponsorshiphasbeenimportantforourbusinessandhasworkedwellforcycling.Wenowpositionourachievementsinthecontextoftheeconomicbenefitstothecountry,thereturnoninvestmentweachieveintermsofbrandawarenessandourcontributiontoIrishlifethroughthesportofcycling.

In2012,AnPostsupportedtheAnPostSeanKellyTeam,AnPostRás,AnPostCycleSeries,AnPostRásnamBan,theIrishCyclingShowandtheIrishParacyclingteamontheroadtotheLondon2012Games.

We now position our sponsorships within the context of their economic benefit to the country and return on investments.


staMP IssUes anD PHILateLIC PUBLICatIons

In 2012, an Post issued a total of 37 special and commemorative stamps covering such diverse topics as Significant Science Milestones – Dublin City of Science and Boyle’s Law, Barnardos Ireland, Olympic games – London 2012, and Europa – “Visit Ireland.”

Includedamongstthehighlightsofthe2012stampprogrammewerethefourpoignantstampsissuedtocommemoratetheCentenaryofthesinkingoftheTitanic;twoeerieillustrationsbyDavidRooneytomarktheCentenaryofthedeathofBramStoker,thecreatorofDracula;andasetofmemorablestampstocelebratethe50thInternationalEucharisticCongress–whichwasheldinIrelandforthefirsttimesince1932.

AseriesoffourstampswasdesignedbyGerGarlandtocelebrateContemporaryArts-Dance.Issuedasdiamondshapedstamps,andcontainedwithinaninnovativediamondshapedbooklet,thesetfeaturedarangeofmoderndancemovementsfrom:FabulousBeastDanceTheatre,DanceTheatreofIreland,IrishModernDanceTheatreandCoisCéimDanceTheatre.

Notedartist,VincentKillowrycreatedtwoatmosphericpaintingsfortheVolvoOceanRacestamps,whileFergusLyonspaintedtheimagesonwhichtheIrishMythsandLegendsstampsetwasbased.DesignedbySteveSimpson,theselegendarystampsdepicttheadventuresofTheChildrenofLir,DeirdreoftheSorrows,FionnMacCumhaillandSetanta.

DesignedbyZincDesignConsultants,the150thAnniversaryoftheDublinFireBrigadeuseddramaticphotographytocapturetheheroicactionsofmembersoftheBrigade,whorisktheirlivesonadailybasisasafrontlinepublicservice.

Inaddition,2012sawtheintroductionofphaseIIIoftheSeventhDefinitiveSeries-IrishAnimalsandMarineLife.PhaseIIIcontinuedtheroll-outofthisbeautifulseriesontherecentlyintroducedformat,StampsOnARoll(SOAR).SOARisnowavailableatallpostofficesandallowsthedenominationofthestamptobeprintedatthetimeofpurchase.

Adiverseportfolioofassociatedcollateralwasalsoproduced,includingPrestigeBooklets,miniaturesheets,aYearPackandFirstDayCoverCollection.Onceagain,theIrishStampsYearBookwasproducedinbothstandardandluxuryeditions.Asever,thisstrictlylimitededitionfeaturedallissuesfromtheannualprogramme,andwasproducedtothehigheststandardsofdesign,withstunningimageryandinformativetext.

InMay2012,anexhibitionofmorethan30originalSusanSexpaintingsfromtheIrishWildFlowerDefinitivestampserieswasheldintheNationalBotanicGardens,Dublin.AnPostassistedwiththeexhibition,temporarilyloaningoriginalartworkandproducingasixpageexhibitionbrochure.


STamp ISSUES aNd pHILaTELIC pUbLICaTIoNS CONTINUED

an post an

nual report 2012

An PostGeneral Post OfficeO’Connell StreetDublin 1Ireland

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