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Swiss Post achieves gratifying half-year results

In the first half of 2011, Swiss Post generated Group profit of CHF 550 million. This is an increase of 14 percent on the same period last year. The increase in profit is due primarily to higher customer deposits and net interest income, as well as the Group-wide efficiency gains. Swiss Post achieved good results in all four markets, albeit with differing trends. The letters business remained strong. From today's perspective, Swiss Post expects the results for the full 2011 financial year to be on a par with the previous year.

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From January to June 2011, Swiss Post generated Group profit of CHF 550 million. That is 66 million or 14 percent more than in the same period last year. The main reasons for the rise are the growth in customer deposits and the higher net interest income at PostFinance, allied with efficiency gains across all units. Operating income ("sales") decreased marginally to CHF 4,305 million, due to exchange rates (previous year: CHF 4,311 million). Equity was further increased but, having reached CHF 4,567 million at the end of June, was still below the target level for a logistics and financial services group.

Differing trends in the four markets

Swiss Post achieved positive results in all four markets in which it operates. However, its business performance varied. In the communication market, it achieved an operating result of CHF 80 million (previous year: CHF 79 million). Compared with the same period in the previous year, Swiss Post handled approx. 1 percent more addressed domestic letters. PostMail achieved an operating result of CHF 123 million, 14 million more than in the first half of 2010 (CHF 109 million). The improvement was enabled by efficiency gains. Swiss Post International's operational business developed positively; however, due to one-off writedowns, the result turned out marginally lower, falling from CHF 27 to 24 million. Swiss Post Solutions increased its result from zero to CHF 3 million. This is attributable primarily to the restructuring measures taken in 2010 - namely, the transfer of the direct mail business in Central Europe to a joint venture with the Austrian post office - and the positive business trend in Switzerland. The restructuring measures in Central Europe are the main reason for the decline in Group headcount. Post Offices and Sales achieved a result of CHF -70 million (previous year: -57 million). The lower expenses and additional sales of non-postal brand-name items were not enough to offset the ongoing decline in postal counter transactions (letters and inpayments).

In the logistics market, PostLogistics achieved a result of CHF 73 million (previous year: CHF 76 million). The main reasons for the decline are lower parcel volumes (-1.7 percent) and increased staff costs. The lower volumes are attributable chiefly to the loss of the imported parcels processing business from Germany. In the retail financial market, due to the sustained growth in customer deposits and the associated rise in net interest income, the operating result improved further, by 20.4 percent, to CHF 330 million (previous year: CHF 274 million). This equates to sixty percent of the Group operating result. In the public passenger transport market, PostBus increased its operating result from CHF 17 million to CHF 19 million. The main reason for this was the increased services.

Further improvements to competitiveness and equity base

From today's perspective, Swiss Post expects the results for the full financial year to be on a par with the previous year. It will continue with its efforts to build on its strong market position in all four markets and keep costs in check. It wants to create a broad basis for the Group result - with the aim of further strengthening its competitiveness and further improving the still inadequate equity base. The requirements in terms of the amount of equity will also increase now that the legislator has taken the decision to convert Swiss Post and PostFinance into public limited companies and make PostFinance subject to financial market supervision (FINMA).

Key figures for Swiss Post Group Unit H1 2011 H1 2010 Full year 2010
Operating income CHF million 4,305 4,311 8,736
Operating result[1] CHF million 550 487 930
As % of operating income % 12.8 11.3 10.7
Group profit CHF million 550 484 910
Total assets CHF million 96,433 92,049 93,310
Equity CHF million 4,567 3,797 4,224
Investments[2] CHF million 160 130 364
Headcount at Swiss Post Group (excluding trainees) FTEs[3] 44,094 45,098 45,129
Trainees at Swiss Post Group FTEs[3] 1912 1856 1903

1  Operating result corresponds to result before consideration of non-operating financial result and taxes (EBIT).
2  Investment in tangible fixed assets, participations & intangible assets.
3  Average workforce in full-time equivalents.

Selected key figures for segments (Group units) 30 June 2011

Market Unit Operating income (in CHF m) Operating result (in CHF m)[1]
Communications market 80
Communications market PostMail 1,295 123
Communications market Swiss Post International 385 24
Communications market Swiss Post Solutions 271 3
Communications market Post Offices & Sales 831 -70
Logistics market PostLogistics 708 73
Retail financial market PostFinance 1,235 330
Public passenger transport market PostBus[2] 354 19
Other[3] 483 48

Selected key figures for segments (Group units) 30 June 2010

Market Unit Operating income (in CHF m) Operating result (in CHF m)[1]
Communications market 79
Communications market PostMail 1,310 109
Communications market Swiss Post International 382 27
Communications market Swiss Post Solutions 327 0
Communications market Post Offices & Sales 854 -57
Logistics market PostLogistics 738 76
Retail financial market PostFinance 1,164 274
Public passenger transport market PostBus[2] 342 17
Other[3] 493 41

1  Operating result corresponds to result before consideration of non-operating financial result and taxes (EBIT).
2  In the field of regional public transport, PostBus is subject to the DETEC ordinance on the accounting of licensed companies (RKV). There are differences between RKV and IFRS.
3  Comprises service units (Real Estate, Information Technology, Corporate Purchasing and Language Services) and management units (including Human Resources, Finance and Communication)

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