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A successful start for Swiss Post

In the first quarter of 2013, Swiss Post achieved Group profit of 222 million francs (previous year: 263 million francs), adjusted to take one-off items into account, and an adjusted operating result of 272 million francs (previous year: 269 million francs). Although Group profit fell 41 million francs year-on-year due to higher tax expense, good cost management meant that the operating result was 3 million francs above last year’s figure. Hence, Swiss Post has made a successful start to this very important year which will see a change in its legal status. Equity stood at 5,079 million francs before appropriation of profits, allowing Swiss Post to provide its subsidiaries, and PostFinance Ltd in particular, with the necessary capital for their demerger.

In the first three months of 2013, Swiss Post generated operating income of 2,156 million francs. This represents a decline of 3.1 percent (previous year 2,224 million). The operating result stood at 272 million francs, which is 3 million francs above the previous year’s level thanks to good cost management. Group profit stood at 222 million francs, which is 41 million francs lower year-on-year. This drop is due to an increase in current income tax to 38 million francs (previous year: 2 million).

All four markets contributed to the positive overall result. However, the trends varied from market to market. Modifications to internal payments for services resulted in a rise in the normalized operating result in the communication market and led to a decline in results in the logistics market and – in combination with other factors – in the retail financial market. In the public passenger transport market, significant cost pressure caused a slight decline in the result. The number of addressed letters fell by 3.1 percent (due to the number of working days, amongst other factors). Parcel volumes rose by 2.6 percent compared to the same quarter of last year. The number of kilometres covered by PostBus increased by around 3 percent.

Inflow of new money remains high at PostFinance

PostFinance recorded a normalized operating result of 138 million francs (previous year: 175 million). The decrease is mainly due to changes in payments within the Group as well as lower reversals of impairment. The inflow of new money at PostFinance remains high. In the first three months of the year, 5.4 billion francs were paid into the financial arm of Swiss Post. This is almost twice as much as in the same period last year (+2.9 billion francs). However, customer growth has slowed since last year. In the first quarter of 2013, PostFinance acquired 8,000 new customers (previous year +34,000). The number of customer accounts rose by 13,000 to reach 4.56 million. This is less than in 2012, when PostFinance opened 89,000 new accounts in the first quarter.

Result affected by one-off items

Swiss Post’s financial result in 2013 is affected by two one-off items: firstly, 911 million francs resulting from the initial recognition of deferred taxes due to an integral tax liability as of 1.1.2013; secondly, 123 million francs due to staff costs associated with the plan amendment for restructuring the Swiss Post pension fund. The financial impact of these one-off items has been adjusted (normalized) to allow comparison with the previous year’s figures and to give an accurate representation of operating business.

Change in legal status scheduled for 26 June 2013

Swiss Post and PostFinance are scheduled to become public limited companies on 26 June 2013  with retroactive effect to 1 January 2013. PostFinance will be granted a banking licence by FINMA on the same date. PostFinance expects that all the remaining conditions set by FINMA to be awarded a banking licence will have been met by this date.

Group key figures

Key figures Unit Q1 2013 Q1 2012 Full year 2012[1]
Operating income CHF million 2‘156 2‘224 8‘576
Operating result[2] CHF million 395 269 860
Normalized operating result[2],[3] CHF million 272 269 860
As a % of operating income % 12.6 12.1 10.0
Normalized Group profit[3] CHF million 222 263 772
Group profit CHF million 1‘256 263 772
Total assets CHF million 122‘899 118‘626 120‘069
Equity CHF million 5‘079 3‘222 3‘145
Investments[4] CHF million 93 77 443
Headcount at Swiss Post Group FTE[5] 43‘666 44‘840 44‘605

1  Previous year’s figures adjusted (IAS 19 revised)
2  The operating result is the result before non-operating financial income and taxes (EBIT)
3  Normalized to take one-off items into account
4  Investments in property, plant and equipment, shareholdings and intangible assets
5  FTE = Full-time equivalents. Average headcount expressed in terms of full-time equivalents, excluding trainees.

PostFinance key figures

Key figures Unit[1] Q1 2013 Q1 2012 Full year 2012
Number of customers Thousands 2‘930 2‘845 2‘922
Number of customer accounts incl. pillar 3a Thousands 4‘562 4‘425 4‘549
Customer assets[2] CHF million 114‘192 101‘886 108‘832[3]
Funds and securities CHF million[2] 5‘232 4‘302 4‘524
Mortgages[3] CHF million[4] 4‘237 3‘796 4‘167
Loans to business customers CHF million 6‘381 6‘165 6‘514
E-finance users Thousands 1‘482 1‘384 1‘463
Headcount FTE[5] 3‘460 3‘459 3‘479
Transactions processed Millions, cumulated 232 229 932

1  Per due date (unless otherwise indicated).
2  Monthly average
3  PostFinance does not grant mortgages on its own. It offers mortgages through its partner banks.
4  New calculation from 1.1.2013
5  FTE = Full-time equivalents. Average headcount expressed in terms of full-time equivalents.

Selected key figures per segment (Group units)

31 March 2013 Group units Operating income (CHF million) Normalized operating result (CHF million)[2],[3]
Communication market 1‘243 87
Communication market PostMail 765 109
Communication market Swiss Post Solutions 139 -1
Communication market Post Offices & Sales 435 -21
Logistics market PostLogistics 391 33
Retail financial market PostFinance[4] 620 138
Public passenger transport market PostBus[5] 199 9
Other[6] 267 5
31 March 2013 Group units Operating income (CHF million)[1] Normalized operating result (CHF million)[2],[3]
Communication market 1‘264 44
Communication market PostMail 828 120
Communication market Swiss Post Solutions 142 1
Communication market Post Offices & Sales 397 -77
Logistics market PostLogistics 386 38
Retail financial market PostFinance[4] 611 175
Public passenger transport market PostBus[5] 184 10
Other[6] 228 2

1  Previous year’s figures adjusted (IAS 19 revised)
2  The operating result is the result before non-operating financial income and taxes (EBIT)
3  Normalized to take one-off items into account
4  PostFinance is regulated by the Swiss Financial Market Supervisory Authority (FINMA) and is therefore subject to Swiss bank accounting guidelines (BAG). There are variations between BAG and IFRS.
5  In the field of regional public transport, PostBus is subject to the DETEC directive on the accounting of licensed companies (RKV). There are variations between RKV and IFRS.
6  Includes service units (Real Estate, Information Technology, Corporate Purchasing and Language Services) and management units (such as Human Resources, Finance and Communication).