Service-oriented - Die Schweizerische Post

“ I’d like Swiss 

Post to stay 

the way it is.” 

Stephanie Ehret 

Teacher, Riehen 

Annual Report 2006 

“ The competition 

is forcing 

Swiss Post to 

change too.” 

Reto Brändli 

Managing director, Regensdorf

Annual Report | Contents 

Contents 

Annual Report 

Chairman’s foreword 6 

Interview with the Chief Executive Officer 8 

Service-oriented: An efficient Swiss Post for a strong Switzerland. 12 

Group 12 

Mail 18 

Financial Services 20 

Logistics Services 22 

Passenger Transport 24 

International 26 

Post Office Network 28 

Philately 30 

GHP and MailSource 32 

Service units 34 

Innovative: Even greater professionalism through innovation. 36 

Prudent: Genuine innovation that protects existing assets. 42 

Considerate: Keeping an eye on existing infrastructure while undergoing change. 48 

Responsible: We are a model of responsibility. 56 

Exemplary: The leader should set an example. 62 

Board of irectors and Executive Management 68 

Corporate Governance 73 

Financial Report 81 

GRI index 157 

“ I want to buy stamps 

and not jelly beans at 

the post office.” 

iana Tschui 

Administrative assistant, Wabern

Swiss Post – the backbone of the basic service – 

generates value and acts in a socially responsible manner. 

Verantwortungsbe Annual Report | Vision 3 

Our vision 

Our vision points the way forward for us. We want to continue providing 

an outstanding basic postal service for Switzerland’s people and its 

economy. We want to continue developing successfully as a company 

and live up to our social responsibility, both as an employer and towards 

society. 

Our long-term action 

Our vision and our core values of “entrepreneurial”, “credible” and “cooperative” 

constitute the basis for our long-term action. We are serviceoriented 

and innovative – and our financial success depends on this. 

We try to use essential resources prudently and considerately. As the 

second-largest employer in Switzerland and as an autonomous institution 

under public law, we act in an exemplary and responsible manner. 

“ Our non-postal brand- 

name articles contribute 

towards financing 

the post office network.” 

Karl Kern 

Head of Post Offices & Sales, Berne

F 

4 Annual Report | Swiss Post in brief 

Swiss Post 

in brief. 

Swiss Post is the second-biggest employer 

in Switzerland. We provide the 

public and the business community 

with postal, payment and passenger 

transport services. We ensure a basic 

postal service ( 1, 2, 3, 4, 5), increase 

the company’s value and operate a 

socially responsible human resources 

policy. The Federal Council sets out 

strategic objectives for Swiss Post for 

four years at a time. ( 6) 

Number one 

Swiss Post is highly profitable and the number 

one in its domestic market and in international 

business with Switzerland. Our core 

Functional organization 

Product Product 

Management Management 

Logistics & Logistics & 

Production Production 

E-Business 

Information Information 

Management Management 

Sales 

Mail 

Logistics Mail Services 

Financial Logistics Services Services 

Passenger Financial Services Transport 

business includes letters, promotional mailings, 

newspaper transport, parcels, express 

items, courier services, retail financial services, 

road-related passenger transport and 

goods logistics. In addition, we are expanding 

our post-related electronic services both 

in Switzerland and abroad, building up our 

distribution services in Switzerland and in 

neighbouring countries and are growing in 

profitable niches in the international letters 

market and in passenger transport. 

The highest organ of governance is the 

Board of irectors. The Executive Management 

is responsible for operational management. 

Swiss Post comprises four business 

Specialist committees Specialist committees Business area Business area 

Business units Business units 

E-Business 

Sales 

Passenger Transport 

International 

Post International Office Network 

Philately Post Office Network 

New Philately Business 

areas and four business units, which in turn 

include units of their own and possibly one 

or more subsidiaries. GHP and MailSource 

constitute the New Business segment. We 

operate under the core “Swiss Post” brand 

with our flagship brands “PostMail”, “Post- 

Logistics”, “PostFinance“ and “PostBus”. 

Management and service units carry out key 

tasks. The product management, logistics 

and production, e-business, information 

management and sales cross-cutting activities 

are coordinated by specialist committees. 

Management Management Unit Unit 

Finance Finance 

Human Resources Human Resources 

General General Secretariat Secretariat 

Strategic Strategic Account Account Management Management 

Group Corporate Group Corporate Development Development 

Corporate Corporate Communication Communication 

Corporate Corporate Security Security 

Internal Internal Auditing* Auditing* 

Service Units Service Units 

Real Estate Real Estate 

Service House Service House 

Corporate Corporate Purchasing Purchasing 

Finance, Finance, Insurance Insurance Management Management 

Information Information Technology Technology 

New Business 

* reporting directly to the Chairman of the Board of irectors

Mail 

PostMail delivers 15 million letters each 

day: from greetings cards through love 

letters to business correspondence, direct 

marketing letters and newspapers. Post- 

Mail operates in the following market 

segments: private customers, business 

mail (invoices, account statements), direct 

marketing, basic mail (daily mail, especially 

for public authorities) and print media. 

85% of revenue is generated by 

business customers. PostMail provides 

around one hundred different services for 

its customers. 

Logistics services 

PostLogistics is the leading logistics provider 

in Switzerland. Business customers 

benefit from a range of services available 

from a single source and customized 

advice for shipping parcels, express and 

courier items, as well as the transport of 

goods and warehouse logistics. PostLogistics 

also offers tailor-made services for 

individual customers or specific customer 

groups, such as import, customs clearance 

and local distribution throughout 

Switzerland, operating a spare parts 

warehouse, returns handling and nighttime 

delivery. PostLogistics guarantees a 

nationwide basic service for parcels. 

Financial services 

Payments, investments, retirement provision 

and financing: PostFinance is a retail 

financial institution with a comprehensive 

range of products and services. With a 

market share of around 60 percent, it is 

the undisputed leader in the Swiss payments 

market and, with yellownet, a 

leader in e-finance services. PostFinance is 

a reliable partner for private customers 

with low to average income and assets as 

well as for SMEs; it also works with large 

companies, public entities, cantons, 

the Confederation and social insurance 

companies. PostFinance aims to provide 

them all with an excellent service. 


PostBus Switzerland AG, a wholly owned 

subsidiary of Swiss Post, has a network 

covering 12.268 kilometres and carries 

over 106 million passengers a year, making 

it the number one provider of regional 

public transport in Switzerland. Outside 

Switzerland, PostBus operates scheduled 

services in France and the Principality of 

Liechtenstein. 1.994 vehicles are on the 

road daily, carrying commuters, travelling 

tourist routes or providing a dial-a-ride 

service. PostBus is a reliable and efficient 

partner for municipalities and cantons – 

offering scheduled services and comprehensive 

transport management ranging 

from vehicle maintenance to marketing. 

Post Office Network 

With around 2,500 post offices throughout 

Switzerland, Post Offices & Sales offers 

a unique basic service throughout the 

country: Switzerland has one of the densest 

networks in the world in terms of 

access points. A broad range of brandname 

articles, both postal and non-postal, 

from stamps to stationery to mobile 

phones, are on sale at these outlets, 

catering for both private customers and 

corporate clients. 

International 

Swiss Post International offers customers 

in Switzerland and abroad an attractive 

bulk mailing service for letters, printed 

matter and small consignments. SPI is 

represented worldwide with subsidiaries, 

distribution partners and joint ventures 

in 13 European countries, the USA and 

four countries in Asia. Well over half of its 

1,000 or so employees are based in Switzerland. 

SPI works together with experienced 

specialists around the world. We 

have joined forces with partners in the 

area of customs clearance, parcel post, 

courier and express services to ensure that 

our customers have speedy access to a 

truly global distribution network. 

Philately 

The Philately unit issues around 40 new 

stamps each year. At a time when electronic 

services are pushing out physical 

letters and stamps, the unit is supporting 

its existing business with topical and 

popular issues such as the Alinghi stamp 

while attempting to win collectors abroad 

too. Given its current customer base 

and supported by the high cultural value 

placed on stamps, the unit is building 

up a second pillar by offering a mail-order 

business with high-quality products. 

GHP 

The German-based GHP Group, with 

around 2800 employees, operates in 

seven countries and was acquired by Swiss 

Post in 2006. As one of the biggest European 

providers of dialogue marketing 

and customer management services, it 

rounds out the Swiss Post range. 

MailSource 

MailSource offers in-house postal services 

for companies, scanning, archiving and 

reception services in Switzerland, the UK, 

Germany, Italy, Liechtenstein, France and 

the USA. MailSource was established in 

2000 as a subsidiary of Swiss Post and is 

the company’s fastest-growing unit. 

Read more online 

www.swisspost.ch/ar2006links 

1) Postal Act 

2) Postal Ordinance 

3) Postal Organization Act 

4) Overview of Swiss Post’s universal services 

5) Swiss Post’s basic service, terms and definitions 

6) The Federal Council’s strategic objectives for 

Swiss Post 2006–2009 

99) Figures for the 2006 Annual Report

H 

Swiss Post key figures 

Service-oriented 2006 2005 

Result 

Operating income CHF million 7895 7499 

of which: generated abroad1 % of operating income 17.6 14.5 

of which: reserved services % of operating income 25.7 31.9 

Operating result CHF million 823 805 

As a share of operating income % 10.4 10.7 

of which: generated abroad1 % of operating result 8.0 4.7 

Group profit for the year CHF million 837 811 

Added value2 Employees 

CHF million 4735 4716 

Employees at Swiss Post Group (excluding trainees) Full-time equivalents 42178 41073 

of which: abroad 

Financing 

Full-time equivalents 3379 1347 

Total assets CHF million 55600 50130 

of which: customer deposits CHF million 48364 43630 

Equity 

Investments 


Investments CHF million 540 347 

of which: other tangible fixed assets, intangible assets CHF million 195 176 

of which: operating property CHF million 310 153 

of which: investments CHF million 35 18 

Ratio of self-financed investments 

Value generation 

% 100 100 

Cash flow from operating activities CHF million 3247 3603 

Post Value Added (PVA) CHF million 532 532 

Innovative 2006 2005 

PostMail Share of new products as a % 3 1.32 0.99 

Swiss Post International Share of new products as a % 3 3.43 2.90 

PostFinance Share of new products as a % 3 4.40 2.88 

Logistics services Share of new products as a % 3 2.58 2.75 

PostBus Share of new products as a % 3 0.00 0.00 

Post Office Network Share of new products as a % 3 3.61 1.10 

Prudent 2006 2005 

Employees (Swiss Post Group) Full-time equivalents 42178 41073 

Employees (Swiss Post) Full-time equivalents 35326 37033 

Trainees at Swiss Post Group in Switzerland Persons 1429 1465 

New trainees Persons 566 512 

Total departure rate at Swiss Post As a % of average headcount 10.9 8.3 

Fluctuation rate (voluntary departures) at Swiss Post As a % of average headcount 3.5 3.6 

Employee satisfaction Index 67 67 

Motivation/willingness to perform Index 70 – 

Monetary brand value of Swiss Post CHF million 535 479 

2005 2004 

Energy consumption Primary energy total year 4716832 4684751 

of which: electricity Primary energy total year 2001319 2081949 

of which: heat Primary energy total year 597880 517211 

of which: fuel Primary energy total year 2117632 2085591 

of which: energy from renewable sources % 8.9 9.2 

Paper Millions of A4 sheets 108.2 91.9 

1 efinition of “abroad” in accordance with secondary segmentation in the Financial Report. 

2 Added value = operating result + staff costs + depreciation – income from sale of property, plant and 

equipment, intangible assets and investments 

3 Share of net sales from newly launched products (in the past four years) in terms of net sales for the unit 

4 In accordance with the CEC, the employment relationship continues for two years. For employment 

contracts in accordance with the Swiss Code of Obligations, the employment relationship is discontinued 

after six months. The figures are therefore not comparable with other companies. 

5 Excl. Executive Management 

6 Excl. CEO 

7 Swiss Post Group in Switzerland, excl. Members of Exec. Mgmt. 

8 18 years, excl. trainees 

9 Average remuneration paid to Members of Executive Management in relation to average employee salary

Considerate 2006 2005 

Individual consultations by job centre Number 1362 1337 

Job centre seminars Participants 1497 1762 

Notice given by employer for economic reasons Number 68 161 

Occupational accidents at Swiss Post Number per 100 FTEs 6.1 6.5 

Non-occupational accidents at Swiss Post Number per 100 FTEs 16.3 16.2 

Costs generated by accidents at Swiss Post CHF million 79.0 84.8 

ays lost due to illness and accidents Absentee days per employee 4 11.5 12.0 

ays lost due to illness and accidents ays per year 394105 432160 

2005 2004 

Total environmental impact Env. impact points (millions) 299203 306125 

Total climate-related burden t CO2 equivalent 281249 280472 

Climate-related burden of goods transports t CO2 equivalent 53634 55451 

of which: rail t CO2 equivalent 6034 7851 

of which: road t CO2 equivalent 47600 47600 

Climate-related burden of passenger transports t CO2 equivalent 122165 119700 

Climate-related burden of journeys to work t CO2 equivalent 46809 49259 

Responsible 2006 2005 

Jobs in Switzerland Swiss Post employees per 1000 employees 12.9 13.6 

Jobs in marginal areas Swiss Post employees per 1000 employees 13.4 14.0 

Employees aged 50–59 % 25.0 24.0 

Employees aged 60 and over % 4.1 3.8 

Average age of staff Years 42.7 42.3 

egree of employment 90% or higher (full-time), total % 56.0 56.9 

egree of employment 90% or higher (full-time), men % 85.4 85.6 

egree of employment 90% or higher (full-time), women % 26.5 27.3 

egree of employment under 90% (part-time), management % 8.5 7.9 

egree of employment under 90% (part-time), management, men % 5.3 4.9 

egree of employment under 90% (part-time), management, women % 30.5 29.9 

Sports sponsorship CHF million 9.7 9.6 

Cultural sponsorship CHF million 3.6 5.1 

Social commitments/donations/gifts CHF million 3.4 3.1 

onations to political parties CHF million 0 0 

Exemplary 2006 2005 

Employment in accordance with Swiss Post CEC FTEs as a % 80.6 86.6 

Men % 50.1 50.8 

Women % 49.9 49.2 

Proportion of women in senior management posts 5 % 9.1 9.3 

Average remuneration to Members of Executive Management 6 CHF per year 444187 426498 

Average salary (employees) 7 CHF per year 75127 73593 

Minimum salary Swiss Post CEC 8 CHF per year 41006 40400 

Salary bandwidth 9 Factor 5.9 5.8 

Cover of Swiss Post pension fund in accordance with occupational 

benefit plan % 103.9 101.1 

Added value generated2 CHF million 4735 4716 

Of which paid to: employees CHF million 3711 3704 

Of which paid to: creditors CHF million 11 9 

Of which paid to: public sector CHF million 2 4 

Of which paid to: owner CHF million 0 0 

Of which paid to: company CHF million 1011 999 

Of which for: transfer to Swiss Post pension fund CHF million 350 350 

Of which for: building up equity CHF million 487 461 

Of which for: depreciation CHF million 257 252 

Of which: other CHF million –83 –64 

Additional key figures are set out in the table of figures. ( 99) 

Annual Report | key figures 

5

6 Annual Geschäftsbericht Report | Chairman’s foreword 

Dear Sir or Madam 

For the first time you are being presented 

with an annual report that contains a 

comprehensive overview of our values and 

key principles. It includes information 

about sustainability at Swiss Post as well 

as the environmental and social affairs 

reports, which were previously published 

separately. In addition to our usual review 

of business you will also be able to read 

about innovative projects, our prudent 

handling of resources, our endeavours to 

take our surroundings into consideration 

as much as possible, our management 

philosophy and our responsibility to 

society. 

The only constant in today’s society is 

change. If Swiss Post wants to be successful 

and safeguard its future, it must anticipate 

economic, technological and political 

trends and gear its actions accordingly. 

It is important to us that our employees 

and our partners – and of course our customers 

– know where Swiss Post is headed 

in the years to come. 

We therefore developed our “vision” further 

in 2006. It points the way toward the 

future and shows us where we would like 

to be a few years from now. We will con- 

tinue to develop the basic service and 

adapt it in line with customer behaviour. 

We will remain a progressive and socially 

responsible employer, even in the face of 

increasing competition. Swiss Post wants 

to increase the value of the company 

through all its business activities. It wants 

to remain the market leader in its core 

business and develop profitably in new, 

related markets, in the interests of its 

customers and together with motivated 

staff and strong partners. This is summed 

up in our vision statement: Swiss Post – 

guaranteeing a basic service – generates 

value and acts in a socially responsible 

manner. 

Swiss Post lived up to its vision in 2006. 

Over the past year we served 3.1 million 

households in Switzerland on at least 

five days a week, delivering letters, parcels 

and newspapers. 9 out of 10 of the country’s 

inhabitants can reach their nearest 

post office or obtain postal services for 

private customers and SMEs either on foot 

or by public transport within 20 minutes 

on average. Independent studies confirm 

that the quality of our basic postal service 

is excellent. This is also backed up by the 

high level of customer satisfaction, which 

rose again slightly in 2006. 

“ If Swiss Post wants to be successful 

and safeguard its future, it must 

anticipate economic, technological 

and political trends and gear its 

actions accordingly.” 

Anton Menth 

Chairman 

Staff at Swiss Post enjoy excellent employment 

conditions, according to a nationwide 

comparison. As in 2005, employee 

satisfaction came to a good 67 out of 100 

index points. Motivation was measured 

for the first time and, at 70 points, is an 

indication of just how keen our employees 

are to perform. 

Competitive in the market 

In an environment shaped by far-reaching 

change and fierce competition, we generated 

sales of 7,895 million francs. Of 

this, the monopoly business accounted for 

1,834 million francs or 23.2 percent of 

sales, while the lion’s share was generated 

in free competition in the postal market. 

Swiss Post lifted its sales to 837 million 

francs. The strong economic trend as well 

as our willingness to be innovative and 

provide efficient services contributed to 

this result. 

We thus increased the equity base by 

1,605 million, bringing it to 683 million 

francs. However, in this respect Swiss Post 

is still below the levels customary for the 

industry. If we are allowed to go on accumulating 

our profit, it will take until 2009 

to increase equity to the level required for 

operating purposes and create the obliga-

tions expected of us as an employer to 

ensure the long-term pension fund benefits. 

Over 900 million francs were 

channelled into the Swiss Post pension 

fund between 2005 and 2007 as financing 

generally and specifically for the 

change from a defined benefit to a defined 

contribution scheme. 

The acquisition of the German-based GHP 

Group – as the biggest takeover Swiss 

Post has ever completed – contributed to 

our strategic development. GHP is a group 

of companies active in the fields of 

comprehensive dialogue marketing and 

customer management. By developing 

related services, Swiss Post aims to counter 

the declining letter and parcel volumes 

and to create synergies for its Swiss and 

international business. 

Swiss Post today and tomorrow 

eregulation of postal markets is proceeding 

apace worldwide. In Switzerland international 

logistics companies compete with 

Swiss Post in the area of parcels and letters 

weighing over 100 grams where the 

monopoly has been abolished over the 

last few years. Unlike Swiss Post, our competitors 

are not obliged to provide a costly 

nationwide basic service and, because 

they are not bound by the Public Officials 

Act, they can adapt their wage costs and 

employment conditions flexibly, in line 

with the respective segments and geographic 

regions. Swiss Post must use the 

time still remaining to prepare for the 

deregulated market and to become more 

competitive. 

On the technological front, e-substitution 

is developing. Physical letters are being 

replaced to an increasing extent by mod- 

ern electronic forms of communication 

such as e-mail and text messages (SMS). 

The letter volume declined by 1.8 percent 

over the past year. As the basic service is 

financed in part from revenue generated 

by the letters monopoly, this trend must 

be monitored very closely. Moreover, 

customers are using actual post offices 

less and less often, which is forcing us to 

adapt our post office network and also 

to ensure that we have sufficient access 

points. 

This is the backdrop against which the 

reform of postal legislation initiated by the 

Federal Council in May 2006, will be implemented 

( 7). For Swiss Post it is important 

to provide an up-to-date, high-quality 

basic service ( 6) in future too. The crucial 

aspect will be the scope it will take, as 

envisaged by politicians and inhabitants, 

and how it will be financed. If we want to 

retain a basic service on today’s scale, the 

residual monopoly is the most efficient 

financing option. 

However, should the postal market be 

completely deregulated, Swiss Post will 

campaign to ensure fair conditions for 

all market players. This means, above all, 

adapting the basic service mandate to a 

competitive level. To make Swiss Post 

more competitive in those markets that 

have already been deregulated, it is calling 

for the abolition of the Public Officials Act 

and the need to have employees bound 

by the Swiss Code of Obligations and for 

a change in the legal status of Swiss Post 

to bring it into line with the shift in conditions 

since the previous postal reform in 

1998. However, the employees should not 

be forced to bear the brunt of deregulation. 

Instead, Swiss Post advocates standardizing 

employment conditions throughout 

the entire industry. If PostFinance is 

to develop further and continue making a 

substantial contribution to Swiss Post’s 

results, it will need the possibility of engaging 

in the lending business. 

Annual Report Verantwor | Chairmtungsbewusst 

an’s foreword 7 

“ We will remain a progressive and 

socially responsible employer, 

even 

in the face of increasing competition.” 

Thanks 

On behalf of the Board of irectors and 

Executive Management I would like to 

thank all our customers for their loyalty. 

Particular thanks are due to our employees 

for their dedication and motivation. 

The results they produced on a daily basis 

are among the best at an international 

level, despite the difficult operating environment. 

I would especially like to thank Rocco Cattaneo, 

who is leaving the Board of irectors 

after eight years. Nicola Thibaudeau 

and Rolf Ritschard were elected as new 

members of the Board. We were deeply 

saddened to learn that Rolf Ritschard died 

unexpectedly at the beginning of 2007. 

Finally, I would also like to thank Karl 

Kern, who retired as the Head of the Post 

Office Network and as Member of Executive 

Management at the end of 2006. The 

post office network was modernized 

under his leadership, between 2000 and 

2006. I would like to wish his successor 

Patrick Salamin every success. 





7) Swiss Post before reform of postal legislation

8 Annual Geschäftsberich Report | Interview 

Ulrich Gygi, Chief Executive Officer 

“ Our uppermost goal is 

still to provide an excellent 

basic service for all of 

Switzerland.” 

Interview: Andreas Sturm, Marcel Suter Mr Gygi, Swiss Post is facing major 

changes. Where do you feel this process 

of change the most in terms of 

operations? 

Of course we realize that we are facing 

competition. We are losing market 

shares in our logistics services and our 

margins are dwindling. On the other 

hand, the letters volume has continued 

to decline, partly as a result of electronic 

communication. In 2006, Swiss Post 

processed 1.8 percent fewer addressed 

and 1 percent fewer unaddressed letters. 

Customer behaviour has also changed; 

in other words, our dense post office 

network is not being used to the same 

extent as in the past. Since 2000, 

42 percent fewer letters and 42 percent 

fewer parcels were handed in at post 

offices, and the volume of inpayments 

was down by 14 percent. To meet these 

challenges we are attempting to boost 

productivity and promote innovation 

in all units so that we can offer our 

customers practical services. 

Where was this process of change 

felt the most last year? 

First and foremost, probably with the 

Ymago ( 8) project. This involves the internal 

redistribution of tasks among the 

post offices in addition to the agency 

model, known as the “post office in the 

village shop”. With Ymago we will be 

able to make the network more customer-friendly 

and also more efficient. This 

is a process of optimization that is necessary 

for operational purposes but which 

is also controversial because it affects the 

salary structure, among other things. 

I have noticed that understanding of the 

need for change has grown, both within 

the company and among the public. 

Unfortunately, implementation of the 

legal merger of PostParcels, ExpressPost

AG and our goods logistics was not possible. 

The Federal Office for Justice denied 

permission to outsource the universal 

services from PostParcels. However, 

these three units will operate in the market 

as a single company with a single 

offering from a single source. 

By contrast, we were given permission to 

implement outsourcing in connection 

with PostBus. As a public company, the 

unit will be able to act more flexibly in future 

and will find it easier to work closely 

together with other public transport providers. 

I also hope that resources can be 

managed leanly. 

Swiss Post is reporting a profit of 837 

million francs for the year under review. 

Many people view this as a contradiction 

to the salary and job cuts 

resulting from Ymago. 

Let me say first of all that we are proud 

of this result; it is appropriate for a 

company of our size and bears comparison 

in international terms. However, 

profit and a simultaneous reduction in 

headcount do not constitute a contradiction. 

Swiss Post is being increasingly 

exposed to competition, and technology 

is making manual work redundant. 

Fighting this trend would pose a threat 

to our very existence. It makes more 

sense to seek new business opportunities 

and to create jobs there. We are 

doing this all the time. For instance at 

PostFinance, with in-house postal services 

for large customers, document 

management, direct marketing and other 

services. We can deal actively with 

the ongoing process of change and 

with the future in mind only if we are 

financially fit. This is the only way for us 

to implement projects such as Ymago in 

a socially responsible manner and to 

finance the necessary structural adjustments 

and investments. Finally, our result 

will serve to secure the future of 

jobs at Swiss Post. And besides, only a 

commercially successful company attracts 

potential employees and customers. 

Why isn’t Swiss Post cutting prices if 

its profit figure is this good? 

Prices in the competitive business are shaped 

by the market and are in a constant 

state of flux. The monopoly prices are 

approved by the Federal epartment of 

Environment, Transport, Energy, and 

Communications. The quality that our 

customers want and appreciate comes at 

a price. In an international comparison 

we are in the lowest third. ( 9) 

Annual Verantwortungsbewusst 

Report | Interview 

9 

The owner also wants us to build up an 

industry-standard level of equity. Our 

target is three billion francs. At the same 

time we had to ensure a solid basis for 

our pension fund, in the interests of 

both our employees and the tax-payers. 

Our good results have now provided the 

necessary funding. Further funds will be 

needed for the switch to a defined contribution 

scheme. Finally, we have to 

finance our investments from resources 

we generate ourselves. Once we have 

reached these goals and can sustain 

them, the Confederation can look forward 

to receiving some of the profit. The 

Federal Council has the last word on 

profit appropriation. 

PostFinance again made a major contribution 

to profit. Swiss Post is seeking 

a banking licence and would thus compete 

directly with the banks, in particular 

the cantonal banks. But does Switzerland 

really need another bank? 

PostFinance currently has 2.31 million 

customers, many of whom are small customers 

and small and medium-sized enterprises. 

We handle a good portion of 

all the payment transactions in Switzerland. 

We want to be able to offer these 

customers the entire range of financial 

services at attractive and fair conditions.

10 Annual Geschäftsbericht Report | Interview 2006 

In the current situation we are allowed 

to sell mortgages only in cooperation 

with UBS and have to share the margins 

with it. Naturally this limits our room to 

manoeuvre. We are prepared to enter 

the retail market under the same conditions 

as our competitors. For this we 

need the appropriate legal basis. ( 7) 

Swiss Post is calling for employment 

contracts to be subject to the Swiss 

Code of Obligations and is also outsourcing 

more and more of its service 

from the parent company to public 

companies. Does this mean the end of 

the social partnership? 

This brings us to the topic of equal conditions 

for all market players. We are 

in favour of collective employment contracts 

for certain sectors (industry CECs) 

on the basis of the Swiss Code of Obligations 

( 10), as we believe that competition 

should be based not on salaries 

but on the quality of services. Swiss Post 

operates in several sectors open to competition. 

To ensure that everyone has the 

same opportunities we must bring about 

these CECs in the medium term. Of 

course we stand behind the principle of 

social partnership. 

Swiss Post is a traditional Swiss institution 

that is now expanding abroad 

on the profit it generates with its monopoly 

business. Why? 

First of all: Of the sum which you call the 

profit from the monopoly business, 

which is 837 million francs, we generate 

the lion’s share in direct competition. 

Less than one third is generated by 

monopoly business, and this is used to 

finance the basic service. 

And now to your question: in Switzerland 

we are facing declining mail volumes. 

One major reason for this is 

substitution of letters and other postal 

items with electronic forms of communication. 

In order to counter these lost 

earnings we are looking beyond Switzerland’s 

borders and want to grow abroad 

in post-related niche markets. ( 6) 

Essentially, our subsidiaries operate in 

three areas abroad. Swiss Post International 

(SPI) focuses on cross-border traffic 

in the business customer segment. 

SPI’s business is geared primarily to safeguarding 

the domestic market. The rapidly 

growing MailSource Group offers 

successful in-house postal services for 

companies. MailSource also generates 

business for the other units of Swiss 

Post. The third unit is GHP Group, in 

which we acquired a two-thirds stake in 

2006. It operates in the growing market 

for customer loyalty programmes and 

dialogue marketing. With GHP we aim 

to globalize our business even further 

and develop activities that will ultimately 

generate postal items. New strategic 

options are opening up for Swiss Post 

International and MailSource in terms of 

delivery to end customers and in the 

field of document management. Sophisticated 

GHP services such as integrated, 

card-based customer loyalty programmes 

can be adapted to Swiss needs. GHP is 

the market leader in Germany for health 

insurance cards. This will create synergies 

for the future Swiss health card. 

These three units employ almost 3,400 

people and contribute around 17.6 percent 

to Group sales, and the trend is on 

the increase. 

Let’s stay in the international arena: 

what is Swiss Post’s stance, as a company 

owned by the Confederation, 

on the obligations entered into by 

Switzerland under the Kyoto Protocol 

on climate protection? 

At Swiss Post we have adopted the obligations 

and targets of the Kyoto Protocol. 

In this way we also acknowledge 

that climate change will mean a need for 

us as a company to take specific action. 

We are, for instance, also optimizing our 

transport system to bring it into line with 

ecological requirements. Although, for 

economic reasons, we currently handle a 

slightly higher portion of our goods 

transport by road, the overall result in 

terms of energy and the climate is better

with multi-modal transport. The ideal 

mix of road and rail-based transport, 

combined with intelligent transport planning 

and the use of state-of-the-art vehicles, 

is the key to success. We have already 

achieved a good part of the 

energy and climate goals ( 11, 12) we 

set for 2010. We are confident that we 

will reach the objectives of the Kyoto 

Protocol. 

However, we also comply with international 

standards and agreements in 

terms of social accountability. Since 

2006, all suppliers have had to comply 

in writing with our comprehensive social 

and ethics code ( 13). In this way 

we want to ensure that competition 

among suppliers is based on the quality 

of the service and not on working conditions 

or low environmental standards. 

The Postal Act is being revised. What 

are your messages for the legislator? 

Our uppermost goal in revising the Postal 

Act is to go on providing an excellent 

basic service for the whole of Switzerland. 

However, we also want to remain a 

socially responsible employer and ensure 

our further development on the basis of 

our own resources, i.e. be financially 

independent. This means that there must 

be fair rules for Swiss Post too. ( 7) 

We are therefore supporting the residual 

monopoly for letters. This is the best way 

to finance our basic service. If the postal 

market should nevertheless be deregulated, 

there must first be clarity as to the 

scope and financing of the basic service. 

Here, the question is: What acceptance 

and distribution network would a company 

operate and how would it organize 

delivery if it did not have to fulfil a basic 

service mandate? It would build up several 

hundred post offices, and not 2.500. 

And it would not offer such a frequent 

delivery service in more sparsely populated 

regions. This difference between 

our current postal network and one that 

makes sense in operational terms accounts 

for the additional costs of the 

basic service. Today we can cover these 

costs with the letters monopoly. If parliament 

lowers the monopoly limit further 

or if the market is fully liberalized, financing 

of the basic service or of other 

political requirements imposed by the 

Federal Council would no longer be ensured, 

and new rules would have to be 

drawn up. 

Wherever Swiss Post faces competition, 

the same, fair operating conditions 

would have to apply to all market players 

– again, the concept of a level playing 

field. We would like to be able to employ 

our staff under the terms of the 

Swiss Code of Obligations – just as our 

competitors do. To ensure that our em- 


Report | Interview 

“I have noticed that understanding 

of the need for change has 

grown, both within the company 

and among the public.” 

ployees do not suffer from competition, 

we are in favour of collective employment 

contracts for the entire industry. 

11 





7) Swiss Post before reform of postal legislation 

8) Post office network: the only constant is change 

9) Swiss Post and attractive letter prices 

10) Public Officials Act 

11) Swiss Post’s environmental objectives 

12) Climate change and political initiatives 

13) Social and ethics code

12 Annual Geschäftsbericht Report | Service-oriented 2006 | Group 

Service-oriented | Group 

An efficient 

Swiss Post for 

a strong 

Switzerland. 

“I want to hand in 

my letters and parcels 

at our post office in 

St Antönien.” 

Andreas Luck 

Small business owner, Ascharina 

Swiss Post meets the public’s high 

expectations in terms of its basic service 

and fulfils its service mandate to 

a high standard. In 2006, it was able 

to maintain or improve on the customer 

satisfaction levels in all business 

units. By increasing our competitiveness 

we have created the ideal 

platform from which to defend our 

position in a hotly contested environment. 

We are: continuing our policy 

of ensuring broader-based contributions 

to the result, increasing the 

company value as requested by the 

Federal Council, providing support for 

economic development in all parts of 

the country, and offering our employees 

good prospects. 

In the 2006 business year, Swiss Post generated 

Group profit of 837 million francs, 

which is 26 million francs more than in 

the previous year. Compared with 2005, 

operating income rose by 396 million 

francs to 7,895 million francs. Of this, 

197 million francs are attributable to 

acquisitions. We were again able to 

increase the value of the company as a 

whole – by 1,605 million francs (2005: 

532 million francs). Thanks to the positive 

result, Swiss Post’s equity increased to 

1,605 million francs but this is still not 

in line with the industry. All business 

areas and units again contributed to Group 

profit.

Developments in the economic 

environment 

The good result was achieved in a gratifying 

economic environment: the strong 

expansion in the global economy continued 

in the second half of 2006. Although 

the sustained upswing in the USA lost 

momentum, growth in the EU picked up. 

The economic upturn continued in Japan 

and in most other countries in Asia, in 

particular in China. This trend occurred 

against a backdrop of sharply fluctuating 

oil prices. 

In Switzerland, economic growth was 

balanced and broadly based. The situation 

on the labour market continued to 

improve, with the brighter mood boosting 

job security and consumer confidence. 

In 2006, the provisional G P 

growth rate was 2.7 percent. 

emand for logistics and financial services 

depends on the general economic 

trend as well as on the related interest 

rate trend. Retail trade benefited from the 

favourable macro-economic conditions. 

The transport and logistics industry profited 

from the positive impetus of foreign 

trade and the upbeat consumer mood, 

and the telecoms sector was again one of 

the growth engines. These trends benefited 

the financial and logistics sectors of 

Swiss Post in particular. 

Volumes/traffic 

The downtrend in mail volumes for domestic 

and international letters continued. 

The 2005 results were not matched 

this year, especially in the field of nonpriority 

single items (B Mail), owing to a 

shift towards less expensive bulk mailings 

and the ongoing optimization in the mailing 

of account statements in the financial 

sector. On the other hand, the overall 

volume of parcels was in line with the 

previous year’s level, and the number of 

Swiss-Express items was higher. The inflow 

of new money at PostFinance was 

again positive. The number of passengers 

was slightly higher, thanks to the favourable 

trend in commissioned services. 

Buoyed by the sound economic environment 

(tourism, exports), international 

letter post increased year on year. 1 

Our success strategy 

In order to ensure sustainable success and 

safeguard our core business in the long 

term, we mean to increase our competitiveness 

even further. We therefore intend 

to improve and expand our services in 

the existing markets. The focus will be on 

industry solutions such as repairs and 

hospital logistics, innovative services for 

payments and digital signatures, as well 

as intensified advisory services such as the 

video consulting service from PostFinance. 

By adjusting the post office network to 

customer behaviour, expanding the range 

“ Why does the cost of mailing a letter 

include paying for structures 

that are used by only a few people?” 

Christian Bütikofer 

Attorney, Gossau (SG) 

Annual Report | Service-oriented | Group 13

14 Annual Geschäftsbericht Report | Service-oriented 2006 | Group 

of PostFinance services and products on 

offer at post offices and setting up our 

own PostFinance branches as well as expanding 

our sales platforms on the Internet, 

we want to coordinate our distribution 

channels more effectively with one 

another. 

By steadily adapting structures and processes, 

dividing in-house tasks among post 

offices, using state-of-the-art technology 

and adopting a lean approach to cost 

management we will continue to boost 

productivity. Maintaining a dialogue with 

those around us, we are committed to 

further developing the regulatory conditions 

under which we operate, in order to 

safeguard our entrepreneurial scope and 

reach and to ensure fair “rules of the 

game” for all market players. Industryspecific 

employment conditions and contracts 

subject to the Swiss Code of Obligations 

are a key aspect if we are to enjoy 

a level playing field and succeed in the 

fiercely competitive market. 

We aim to compensate the decline in our 

core postal business: by profitable growth 

in international niche markets, by internal 

postal services for companies and institutions 

and by taking over business proc- 

esses in the value chains of third parties 

(incl. order platforms, fulfilment, invoicing). 

This will provide us with growth in 

our post-related markets and enable us to 

reduce our dependency on both our core 

business and the domestic market. In the 

long term, PostFinance should be granted 

a banking licence and thus be able to 

expand the range of its financial services. 

In order to make use of this potential for 

success, we want to maintain a high level 

of motivation and willingness to per-form 

among our staff. By pursuing this strategic 

direction, we will be able to implement 

our vision of an efficient and socially 

responsible Swiss Post. 

Important steps 

In implementing our vision and strategy 

we achieved the following important 

milestones in 2006: 

We began building the two letter centres 

in Eclépens and Härkingen as part of 

the REMA (Reengineering Mail Processing) 

project. The Zurich-Mulligen centre 

has been undergoing refurbishment since 

February 2005. The three letter centres 

will be among the most modern in the 

world. Zurich-Mulligen will commence 

operations in summer 2007, and Härkingen 

and Eclépens will become operational 

in the summer and autumn of 2008 respectively. 

In addition to the three new 

letter centres, there will be six sub-centres 

in Switzerland for letter processing and 

two locations for video coding and returns 

processing (Chur and Sion). REMA 

will enable us to save 170 million francs 

in letter-processing operating costs 

each year. Swiss Post will invest over one 

billion francs in the entire project. 

On 14 January 2007, PostFinance took 

over the processing of payments for 

Glarner Kantonalbank. This is an important 

step along the way to becoming 

a leading provider of payments processing 

for other financial institutions. Post- 

Finance has now been processing slipbased 

payment transactions on behalf of 

UBS since autumn 2005. 

The PostBus unit of Swiss Post was transferred 

to PostBus Switzerland AG on 

1 July 2006. The Federal Office for Justice 

had previously looked into the project, 

before issuing an expert opinion that 

deemed it to be legally permissible. The 

subsequent agreement affiliating PostBus 

staff to the collective employment con- 

“ In future, Swiss Post should 

deliver mail throughout 

the week at a standard price 

to places like St Antönien.” 

Silvia Brembilla 

Mayor of municipality, St Antönien

tract for subsidiaries of Swiss Post guarantees 

them good working conditions in the 

future too. At the same time, by transferring 

PostBus to the public company, we 

are creating the basis for PostBus Switzerland 

AG to gear its activities more closely 

to the needs of the market and thus 

remain the number one provider of roadbased 

public passenger transport. 

In the autumn, the Board of irectors 

gave the go-ahead to implement the 

Ymago project. Swiss Post will conduct 

an internal reorganization of its post offices 

in 2007. ( 8) By the end of 2008 

we aim to set up 200 new agencies. 

These measures will help us respond even 

faster and better to customer behaviour 

and make our network more efficient. 

Following completion of the project by 

the end of 2008, Swiss Post expects to 

improve its annual results to the tune of 

somewhat more than 50 million francs. 

Ymago is expected to result in between 

400 and 500 jobs being cut over the 

course of two years. We do not anticipate 

that Ymago will lead to dismissals, in line 

with previous reorganizations. 

In ecember 2006, Swiss Post signed an 

agreement on the future of the Swiss 

Post pension fund with the Communications 

and transfair unions. In particular, 

it sets out the transition from a defined 

benefit to a defined contribution plan. 

Swiss Post is committed to financing the 

pension fund within the bounds of the 

financially possible and within the confines 

of the Federal Council’s decisions 

regarding appropriation of profit. As the 

Confederation had not fully financed the 

Swiss Post pension fund when it was established 

on 1 January 2002, this course 

was the one taken. Around one billion 

francs will be channelled into the pension 

fund from profit. 

The monopoly limit ( 4, 5) for letters 

was lowered to 100 grams on 1 April. A 

further section of our core postal business 

is thus open to competition. Thanks 

not least to our high quality and the 

good price-performance ratio, the impact 

on our business has so far been slight. 

The residual monopoly in the letters market 

remains, in our opinion, the most 

efficient way of funding the basic service. 

Further deregulation steps will call into 

question the present quality of supply 

and the current level of service and 

should be delayed until the political authorities 

have clarified the future scope 

Annual Report | Service-oriented | Group 

of the basic service and how it will be 

funded. 

The acquisition of the German-based 

GHP Group will strengthen our position 

in the future-proof markets for customer 

loyalty programmes and dialogue marketing. 

GHP will continue to operate under 

its own name. 

Our MailSource subsidiary acquired several 

companies in the USA, France and 

Switzerland and thus expanded its new 

business to include internal postal services, 

scanning and archiving for companies. 

Group results 

In 2006, we successfully implemented our 

strategy: Group profit in 2006 of 837 

million francs was 3.2 percent or 26 million 

francs higher than the previous 

year’s result of 811 million francs. All segments 

contributed to the positive result, 

albeit to varying degrees. We were again 

able to increase the value of the company 

as a whole by 532 million francs (2005: 

532 million francs). 

Operating income came to 7,895 million 

francs (2005: 7,499 million francs). The 

“ Sending a letter from 

Gossau (Canton St Gallen) 

to St Antönien costs more 

than the franked amount.” 

Peter Mürner 

PostMail controller, Berne 

15

16 Annual Report | Service-oriented | Group 

main contributors to the growth in operating 

income with third parties were the 

Financial Services, International, Other 

(primarily Real Estate) and New Businesses 

segments. The further increase in customer 

deposits had a positive impact on 

income from financial services. Operating 

income in the Mail and Post Office Network 

segments, by contrast, has fallen. 

The effect of acquisitions on operating 

income amounted to 197 million francs. 

Operating expenses of 7,072 million francs 

were up 378 million francs or 5.7% on 

the previous year. Half (190 million francs) 

is attributable to acquisitions. As a result 

of lower employee benefit expense, staff 

costs increased by just 7 million francs 

despite the acquisitions. The lower 

employee benefit obligations are a result 

of deposits (350 million francs) made to 

the pension fund from 2005 profit. Resale 

merchandise and service expenses and 

expenses for financial services were 

up 269 million francs compared with 2005. 

Writedowns changed only slightly, up 

5 million francs on the previous year to 

257 million francs. The investments 

for the new letter centres as part of the 

REMA project will lead to higher writedowns 

in future. 

The carrying amount of property, plant 

and equipment was up 317 million francs 

compared with the prior year, owing, 

among other things, to investments in 

REMA. The increase in provisions (excluding 

employee benefits) of 24 million 

francs is due mainly to the acquisition of 

the GHP Group. Thanks mainly to a 

renewed deposit of 350 million francs 

into the employer’s contribution reserve in 

connection with the appropriation of 

profit in 2005, the liability for employee 

benefit obligations was reduced to 2,627 

million francs as at 31 ecember 2006. 

Consolidated equity came to 1,605 million 

francs as at 31 ecember 2006, an 

increase of 683 million francs compared 

with the previous year. We expect the 

necessary equity of around three billion 

francs to have been accumulated by 

2009. 

Investments in property, plant and equipment, 

intangible assets and participations 

amounted to 540 million francs and were 

higher than in 2005 (347 million francs). 

Investments in participations came to 35 

million francs. As in 2005, the investment 

volume was financed entirely out of funds 

generated by Swiss Post itself. Investment 

activity was focused on the construction 

and equipment of the REMA centres as 

well as on streamlining and optimization 

projects. 

Outlook 

Technological developments and changing 

customer behaviour will continue to 

result in increased substitution and declining 

letter volumes in future. New technologies 

will contribute to efficiency 

increases and process optimization, e.g. 

in sorting. Customer behaviour and technological 

developments are opening 

up new potential for developing innovative 

and service-oriented services, e.g. 

in the field of direct mail. The emergence 

of value chains in many sectors is increasingly 

leading to business activities such as 

scanning, archiving, printing and the 

Key figures – Swiss Post Group 

Result 

2006 2005 


Of which: generated abroad1 CHF million 1391 1089 

% of operating income 17.6 14.5 

Of which: reserved services CHF million 2028 2395 

% of operating income 25.7 31.9 


As a share of operating income % 10.4 10.7 

Of which: generated abroad1 CHF million 66.5 38.0 

% of operating result 8.0 4.7 

Group profit for the year CHF million 837 811 

Added value2 Employees 

Employees at Swiss Post Group 


(excluding trainees) Full-time equivalents 42178 41073 

Of which: abroad Full-time equivalents 3379 1347

management of internal postal services 

being outsourced. This results in new 

business opportunities for Swiss Post. By 

contrast, electronic substitution and 

changing customer behaviour, declining 

use of post offices and a failure to cover 

the costs of operating a nationwide post 

office network have all had a negative 

impact on the development of Swiss Post. 

The Swiss National Bank is predicting a 

slowdown in economic momentum for 

2007. Almost all the components on the 

demand side will continue to grow but at 

a more modest pace. Consumer spending 

will benefit from the robust trend in disposable 

incomes. Swiss Post will continue 

to profit from the favourable economic 

trend. 

The expected positive economic trend 

and growth in imports, exports, willingness 

to invest and G P, coupled with low 

real interest rates will boost our business 

in the financial and logistics sector in particular. 

The strongest growth is expected 

in the telecommunications and financial 

sectors. A growing number of scheduled 

services will probably be put out to tender 

in the passenger transport sector. As regards 

financial services, competition in 

the mortgage market remains very active. 

PostFinance wants to grow in terms of 

customer deposits in particular. Crossborder 

competition will also continue to 

increase, which will have a significant 

impact on the Logistics business area and 

the International business unit. 

Swiss Post will probably increase its company 

value again in 2007 and thus meet 

the Federal Council’s target ( 6). Given 

the increasingly fierce competition and 

sustained impact of substitution, today’s 

healthy profit figure should not deter us 

from continuing to pursue our strategy. In 

order to implement it successfully we will 

take all the necessary steps on the income 

and expenditure front. 

1 etails on volume trends can be seen in the section on the respective 

unit. 

Annual Report | Service-oriented | Group 

17 








99) Figures for the 2006 Annual Report 

Key figures – Swiss Post Group 

Financing 

2006 2005 

Total assets CHF million 55600 50130 

Of which: customer deposits CHF million 48364 43630 

Equity 

Investments 


Investments CHF million 540 347 

Of which: other tangible fixed assets, intangible assets CHF million 195 176 

Of which: operating property CHF million 310 153 

Of which: investments CHF million 35 18 

Ratio of self-financed investments 

Value generation 

% 100 100 

Cash flow from operating activities CHF million 3247 3603 

Post Value Added (PVA) CHF million 532 532 

1 efinition of “abroad” in accordance with secondary segmentation in the Financial Report. 

2 Added value = operating result + staff costs + depreciation – income from sale of property, plant and equipment, intangible assets and investments 

Additional key figures are set out in the table of figures. ( 99)

18 Annual Geschäftsbericht Report | Service-oriented 2006 | Mail 

Service-oriented | Mail 

Fewer letters, 

higher productivity. 

As in previous years, letter volumes 

declined again in 2006. PostMail is 

responding to this challenge with 

high quality and customer-oriented 

services, but especially with the reorganization 

of its letter processing 

operations (REMA project). The new 

letter centres will increase PostMail’s 

productivity. The range of services 

will remain unchanged, but customers 

will benefit from optimized quality 

in letter processing. So far, the 

liberalization of the market for letters 

weighing over 100 grams has had 

hardly any visible effect. 

Letter volumes are still declining. Whereas 

Swiss Post handled 2.98 billion letters 

in 1995, the figure stood at 2.87 billion in 

2000 and had dropped to 2.76 billion by 

the end of 2006. By the late 1990s, the 

trend for letter volumes was more or less 

in line with that of G P. If this development 

had continued, there would be 

far more letters today than there were 

five years ago. However, the letter volume 

declined substantially over this period. 

This phenomenon is due both to the 

merger and elimination of postal items 

and to e-substitution, where physical mail 

is being pushed out by electronic means 

of communication such as e-mail and text 

messages (SMS). 

On 1 April 2006, the market for letters 

weighing more than100 grams was 

opened up to competition. ( 4, 5) Since 

then, a further 350 million francs of Swiss 

Post’s turnover has been subject to competition. 

The effects of this liberalization 

on the Mail business area were hardly felt 

in 2006. 

In 2006, Mail generated operating 

income of 3,083 million francs and an 

operating result of 239 million francs. 

This corresponds to an increase of 

9.6 percent. 

The main challenge facing the Mail business 

area is to be “fit for the market”. 

To achieve this, it is pursuing four main 

strategic directions: safeguarding existing 

revenues, generating new revenues, 

cutting costs and shaping change in good 

time together with its employees and 

customers. 

In order to safeguard its existing revenues, 

PostMail is putting its faith in customer 

loyalty, offering the best value for 

money ( 9), providing a service from a 

single source and customer-oriented services. 

PostMail still stands for impeccable 

Key figures – Mail 

Result 

2006 2005 


Of which: reserved services % 59.5 68.3 

Operating result 

Quantities 


Addressed letters Millions of items sent 2762 28131 Of which: priority items Millions of items sent 742 7511 Of which: non-priority individual items Millions of items sent 806 9191 Of which: non-priority bulk items Millions of items sent 1178 11031 Unaddressed mailings Millions of items sent 1159 12111 Newspapers Millions of items sent 1196 12011 Employees 

Headcount Full-time equivalents 15183 15364 

1 Previous year‘s figures adjusted

quality. 98 percent of all A Mail and 98.3 

percent of all B Mail letters reached their 

destination on time. PostMail therefore 

once again ranked among the leaders 

in terms of punctuality in an international 

comparison. 

In 2006, PostMail installed the first 100 

new, state-of-the-art, standardized postboxes. 

The new model is to replace the 

13 different types currently in existence, 

and will offer greater security as well as 

featuring a large information window. 

Postbox locations will be reviewed together 

with the municipalities. PostMail 

attempts to ensure that postboxes are 

situated at well-frequented, well-lit and 

safe locations. All new models will be 

installed by 2010. 

PostMail continued its “Big things begin 

with a letter” campaign, which included 

TV advertising, ads in the Sunday papers 

and business media, a scented letter for 

Mother’s ay and a national competition 

for creative letter ideas. The goal was 

to increase the emotional value of actual 

physical letters. 

Innovative services 

PostMail aims to generate new revenues 

by expanding its existing services and 

developing new and innovative services 

that will benefit customers. In 2006, 

these included the “ elivering dog food 

campaign”, where postal carriers distributed 

samples of Pedigree dog food to 

interested dog owners. Tour operator 

Hotelplan used the OnTime Mail service – 

guaranteeing exact-day delivery of promotional 

mailings – to reach customers 

on a specified Saturday, thus increasing its 

bookings by almost 50 percent. 

PostMail proved innovative in the fields of 

digital printing and electronic stamps 

too, with its WebStamp product. Furthermore, 

Swiss Post received official recognition 

as a provider of certification 

services. It can thus now offer its customers 

a registered electronic letter service, 

known as IncaMail. 2 

REMA set to commence operations 

PostMail is modernizing its letter processing 

operations with the large-scale REMA 

(Reengineering Mail Processing) project. 

In 2006, ground was broken for the letter 

centres in Härkingen and Eclépens. Refurbishment 

works were concluded in 

Zurich-Mülligen, and the letter centre will 

go into operation in summer 2007. The 

employees affected by job cuts as a result 

of REMA will be assisted in their 

search for a new position. Swiss Post aims 

to find a solution for all employees. 

Shaping change 

In terms of delivery, nationwide campaigns 

were conducted in 2006 to convey 

the values of the mission statement to 

postal carriers in a lighthearted way and 

to show what a closely coordinated team 

can achieve, even in unusual situations. 

PostMail concluded its delivery service 

group-building project in 2006. Through- 

Annual Report Verantwortungsbewusst 

| Service-oriented | Mail 

out Switzerland, 6.100 postal carriers 

carry out their daily work in 700 groups. 

19 

Outlook 

2007 will be the year of REMA: Swiss Post 

will begin operating the world’s most 

modern sorting centre in Zurich-Mülligen. 

The sub-centre in Gossau and the video 

coding and returns processing centre in 

Chur will also be inaugurated. 

PostMail will introduce the new working 

time model for the Move-it delivery service. 

In future, the actual number of hours 

worked will be entered using a scanner 

and credited to the postal carriers’ annual 

worktime accounts. 

2 For more on digital printing, WebStamp and IncaMail, see the “Innovative” 

chapter, page 36. 





9) Swiss Post and attractive letter prices 


Key figures – Mail 

Quality 

2006 2005 

Compliance with A Mail delivery times % of items 98.0 97.7 

Compliance with B Mail delivery times 

Customer satisfaction: business customers, parent 

% of items 98.3 98.2 

company 

Market share 

Index 76 74 

Addressed items weighting over 100 g2 % – – 

2 The letters market was only deregulated for items weighing over 100 g on 1 April 2006, which is why no market share is given for 2005. 

No measurements have been made yet for 2006. 

Additional key figures are set out in the table of figures ( 99)

20 Annual Geschäftsbericht Report | Service-oriented 2006 | Financial Services 

Service-oriented | Financial Services 

Easy to reach, 

clear advice, 

surpassing support. 

PostFinance relies on its strengths in 

the fields of payments and savings, 

aims to be accessible to all its customers 

and sets itself apart by offering 

an outstanding service. To bring it 

even closer to its customers, it is expanding 

its distribution network. 

PostFinance consulting centres are be- 

ing transformed into independent 

branches that will also handle cash inpayments. 

Mobile consultants can, 

if requested, visit customers at home. 

Last year, the situation on the financial 

market was characterized by lower returns 

on the money and capital markets. espite 

these trends, PostFinance continued to 

grow. Inflow of new deposits came to 

2.548 million francs, while customer deposits 

rose to 40.6 billion francs. 136 new 

jobs were created at PostFinance in 2006 

(in full-time equivalents). Mortgage volume 

rose to 1,819 million francs. The operating 

profit amounted to 245 million francs, 

with higher staff costs and customer interest 

rates exerting a negative impact. 3 

Aiming to be among the leaders 

in Switzerland 

PostFinance aims to become one of the 

top three retail financial institutions 

in Switzerland for customer deposits and 

primary banking transactions – through 

sustainable growth and with an industrystandard 

return. It seeks to achieve this 

through its strengths in the fields of payments 

and savings and through the great 

trust placed in it by its customers, whose 

needs are largely met with these services. 

Customer focus is a key success factor. 

All customers – including small customers 

– are to be provided with an excellent, 

round-the-clock service. 

Furthermore, PostFinance decided to convert 

its 28 consulting centres in Switzerland’s 

larger towns and cities into independent 

PostFinance branches and to 

open a further nine branches by 2009. In 

future, it will also be possible to make cash 

inpayments at these branches. PostFinance 

will operate independently at several hundred 

post offices and offer customers ad- 

vice over the phone or on-screen. 4 Mobile 

consultants will visit private customers at 

home upon request, while specialized consultants 

will cater for small enterprises, 

offering them all-round solutions for their 

business and private needs. 

Simple payment solutions 

Mobile Commerce Payment is a new service 

enabling people to make payments 

via the Internet using their mobile phone. 

The service is based on yellowpay, the 

payments solution from PostFinance for 

online shops, and is intended for providers 

who want to offer their customers 

the option of making mobile, cashless 

payments. PostFinance will be offering a 

solution that allows the user to pay with a 

Postcard or any of the usual credit cards. 

Beginning in summer 2007, customers 

will also be able to use a more cost-efficient 

method via their Yellow Account 

to pay for SMS or MMS services instead 

of adding them to their telephone bill. 

Key figures – Financial Services 

Result 

2006 2005 


Operating profit 

Quantities 


Influx of new money CHF million 2548 2065 

Number of customer accounts Thousands 3154 3008 

Average balance of customer deposits CHF million 40604 38169 

Number of transactions million 803 801 

yellownet Customers 760585 671728 

Fund volume CHF million 1560 1524 

Volume of loans to business customers CHF million 2649 2106 

Volume of mortgages for private customers CHF million 1819 1440

PostFinance is the first financial institution 

in Switzerland to offer its customers 

the option of ordering travel payment 

methods on the Internet. Since July 2006 

they have been able to request the reloadable 

Travel Cash card, traveller’s 

cheques and cash in over 80 foreign currencies 

on yellownet. 

Every third payment from Switzerland to 

another country is now handled by PostFinance. 

Of these, 90 percent are destined 

for the EU. PostFinance launched Giro 

International Plus – a product that makes 

handling payments to the EU as easy as 

domestic transactions. By offering this 

cost-efficient service, PostFinance is anticipating 

the establishment of a uniform 

European payment area. 

Practical Postcard 

In 2006, PostFinance launched the Postcard 

Ticket, which, in addition to all 

the usual Postcard functions, also offers 

access to numerous events. Customers 

can book tickets online at attractive rates 

and load them directly onto their card, 

and a scanner admits them to the actual 

event. Fans of Berne’s SCB ice hockey 

club can obtain a Postcard Ticket in the 

club colours. They can benefit from an 

exclusive bonus programme and enjoy 

other attractions relating to the club. 

PostFinance is looking into the option of 

offering the Postcard Ticket in cooperation 

with other ice hockey clubs. 

PostFinance customers can use the Postcard 

to withdraw cash with no charges at 

Customer Service counters or at the cash 

registers of 600 Migros stores. 

Third-party services 

With over two million Postcards used at 

more than 90.000 retail POS, PostFinance 

is a real specialist in handling cashless 

payments. This knowledge and experience 

will now also benefit third parties such as 

the Swiss Travel Fund (Reka). On 1 June it 

launched the Reka Card, which can be 

used to settle transactions at the electronic 

terminals of Reka partners (such as 

transport companies and hotels). In addition 

to data processing, PostFinance also 

handles all customer service functions. 

PostFinance is also a reliable partner for 

handling payment orders. After it had 

taken over slip-based payment transactions 

for UBS in 2005, the Glarner Kantonalbank 

also entrusted PostFinance 

with its payment processing tasks as of 

January 2007. 

20,000 joined in the celebrations 

Carl Koechlin, a National Councillor representing 

Basel, founded the precursor to 

PostFinance – the “postal cheque service” 

Annual Report | Service-oriented Verantwortungsbewusst 

| Financial Services 

– in 1906. PostFinance celebrated this 

anniversary in April 2006 at 25 different 

consulting centres, in the company of 

20.000 guests. 100 people each won 

1.000 francs as a contribution to their 

own personal celebrations. 

21 

Outlook 

In 2007, PostFinance will recruit and train 

staff for its network expansion and will 

also look for locations at which to set up 

its new branches. It will move one of 

its two computer centres, more of its IT 

department and part of its slip processing 

functions to Zofingen. Beginning in 

autumn 2007, it will move into the new 

building, and the computer centre will 

commence operations in 2008. 

3 See the income statement and balance sheet of PostFinance 

on page 154. 

4 See also the “Innovative” chapter, page 36. 




Key figures – Financial Services 

Employees 

2006 2005 

Headcount 

Quality 

Exact-day processing of payment slips at post 


offices 

Exact-day processing of payment slips from 

% 99.9 99.7 

payment orders % 100.0 98.2 

Customer satisfaction: business customers Index 82 81 

Customer satisfaction: private customers 

Market share 

Index 84 84 

Lending business % 7.81 7.34 


22 Annual Geschäftsbericht Report | Service-oriented 2006 | Logistics services 

Service-oriented | Logistics services 

One company 

for all logistics needs. 

PostLogistics is set to become a single 

company: united in its corporate identity 

and organization, and acting as a 

single point of contact for customers. 

It is thus positioning itself as the leading 

provider of logistics services in 

Switzerland. 

The Swiss logistics market was characterized 

by fiercer competition in the parcels 

segment in 2006, with existing customers 

increasingly trying out the services offered 

by competitors. Logistics providers are 

facing pressure on costs, falling margins 

and the globalization of supply and 

demand. Swiss customers continue to 

demand high quality. 

PostLogistics is positioning itself as the 

leading logistics service provider on the 

Swiss market. It serves as a partner for 

customers looking to ship parcels, express 

and courier items, as well as for goods 

transport and warehouse logistics. In addition, 

innovative solutions tailored to 

specific customer groups are offered as 

an all-round logistics package. 

Simplified structure 

Last year, PostLogistics continued on its 

way to becoming a single company. Its 

legal structures were simplified: Setz 

Gütertransport AG was renamed PostLogistics 

AG on 1 January 2006, and Parcel- 

Logistics AG was integrated into the 

parent company. However, in April, the 

Federal Office for Justice denied permission 

to transfer PostParcels to PostLogistics 

AG. ( 4, 5) ExpressPost AG was 

integrated into PostLogistics AG on 1 

January 2007, and SwissPost NET AG was 

renamed PostLogistics Innight AG. Post- 

Logistics has been operating under a flagship 

brand since 2006. 

Higher sales 

In 2006, the Logistics business area generated 

operating income of 1,4 billion 

francs and an operating result of 87 million 

francs. Sales were slightly higher, 

thanks to the expansion of customer and 

industry solutions. The number of parcels 

carried fell by 0.3 percent, while the 

number of Swiss-Express items was up 

by 5.5 percent. 

New services 

PostLogistics expanded its offering last 

year too. For instance, PickPost – a service 

for people who cannot take delivery of 

their parcels at home – was expanded 

significantly. 5 With its special delivery 

service for debt enforcement documents, 

PostLogistics offers debt collection authorities 

a service that significantly increases 

their delivery rates. By the end of 2006, 

eleven cantons, districts and cities were 

relying on this service. Others will follow 

in 2007. 

On the Postlogistics 6 website, business 

customers can find all password-protected 

applications grouped together on a 

single platform: It includes Print & Send 

for shipping management, the “easy” 

parcels service for paperless mailing, and 

Track & Trace Business for following the 

progress of shipments in detail. The online 

freight calculator from PostLogistics 

simplifies the price calculation process for 

transporting goods on pallets . Beginning 

in January 2007, PostLogistics and SIFT 

BERTI SpA will offer forwarding services 

between Switzerland to Italy, in both directions, 

at a preferential consignment 

zone rate. 

Improved productivity 

The reorganization of PostLogistics into a 

single company has greatly improved 

processes. PostLogistics moved into new 

distribution bases in Landquart, Baar and 

Wädenswil. There are plans to build a 

new logistics centre in aillens, close to 

Key figures – Logistics services 

Result 

2006 2005 



Quantities 


Parcels Millions of items sent 104 105 

Express items Millions of items sent 4.4 4.2 

Courier items Net sales in CHF m 42 39 

Small consignments Net sales in CHF m 103 116 

Warehouse logistics Net sales in CHF m 63 36 

Innight Express 

Employees 

Net sales in CHF m 19 17 

Headcount Full-time equivalents 5118 5540

the parcel centre. PostLogistics is thus 

creating an ideal basis from which to reinforce 

its operations in western Switzerland. 

The use of double-decker trucks 

was introduced to reduce diesel consumption, 

increase capacity and make 

cost-savings. 

Strategic alliances 

Mobility Solutions AG, the fleet manager 

of Swiss Post, entered into a strategic 

alliance with the Mobility CarSharing 

Switzerland cooperative, which will optimize 

use of both vehicle fleets. The cooperation 

with eutsche Bahn in fleet and 

mobility management for road-based 

vehicles was continued as part of a joint 

venture. 

SecurePost AG 

SecurePost AG consolidated its position 

in Switzerland and is now one of the 

leading providers in the market for security 

transports. Further customers were 

acquired in the banking and retail segments. 

Towards the end of the year, 

SecurePost AG also began operating its 

new distribution centre (including the 

head office). This new location will be the 

basis for future growth. 

yellowworld AG 

The yellowworld AG subsidiary continued 

to expand its leading position as a provider 

of e-billing and e-logistics services in 

the Swiss market. For instance, the “easy 

billing” solution operated on behalf of 

the Swiss Federal Railways for the “BonusPass” 

was expanded to include public 

transport in the Zurich area. The Federal 

Office for Justice is using the “adminpay” 

online debt collection service, which 

was developed by yellowworld specifically 

for the needs of public authorities. 


| Logistics services 

Outlook 

In 2007, PostLogistics will continue to 

pursue its adopted strategy and position 

itself in the market as the leading provider 

of logistics services in Switzerland. 


6 www.postlogistics.ch/mypostlogistics 

23 






Key figures – Logistics services 

Quality 

2006 2005 

elivery times for domestic PostPac Priority parcels % of items 97.3 97.3 

elivery times for domestic PostPac Economy parcels % of items 97.6 97.7 

Customer satisfaction: PostParcels business customers Index 80 79 

Customer satisfaction: ExpressPost business customers Index 

Market share 

78 75 

Parcels % 74 74 


24 Annual Geschäftsbericht Report | Service-oriented 2006 | Passenger Transport 

Service-oriented | Passenger Transport 

Postbuses now operate 

in the Kandertal too. 

PostBus has reacted to increased competition 

in the road-based public 

transport sector by setting up as a 

public limited company. This move 

allows it to compete and address the 

needs of its customers more flexibly 

and efficiently. 

The former Postbus service run by Swiss 

Post was transformed into a public limited 

company under private law in the 100th 

year of its existence. The Federal Office 

for Justice confirmed the legal viability of 

outsourcing the business from the parent 

company, ( 4, 5) and agreement was 

reached in advance with the trade unions 

regarding affiliation to the subsidiaries’ 

CEC ( 14), thus guaranteeing employees 

working conditions that remain better 

than average in an industry comparison. 

PostBus Switzerland AG was able to commence 

operations on schedule at the 

beginning of July. 

Thanks to its new legal status, PostBus 

Switzerland can function more flexibly in 

the market, making it easier for it to enter 

into alliances with other public transport 

providers and allowing it to present in- 

dustry-standard hiring conditions. Overall, 

PostBus Switzerland can now position 

itself clearly as a public transport company. 

Competition in road-based public transport 

is growing: the cantons and the 

Confederation are increasingly putting 

routes that PostBus Switzerland has operated, 

in some cases for decades, out to 

tender. The crucial factor for a winning 

bid is a cost-efficient service. 

PostBus Switzerland aims to maintain its 

leading market position in its core business 

of “regional passenger transport” by 

becoming more competitive. In addition, 

its system management functions, such as 

service planning, management tasks and 

project management as part of a tariff 

association, will be expanded. Through 

these services, PostBus will be able to offer 

its customers added value and anchor 

itself more firmly in the market. Local 

transport in towns and special transport 

facilities (e.g. train replacement bus services, 

schoolbus routes) and the leisure and 

tour business will also be expanded. 

Moreover, PostBus aims to market the 

Key figures – Passenger Transport 

Result 

2006 2005 


Of which: generated abroad % 4.8 3.2 


Of which: generated abroad 

Quantities 

% 3.3 3.2 

Number of passengers Millions of persons 106 105 

Vehicle-kilometres Millions of km 95 94 

Vehicles1 Number 1989 2029 

PostBus network 

Employees 

km 12268 10450 


1 excl. abroad 

strengths of Swiss public transport to a 

greater extent abroad and to take over 

the management and operation of scheduled 

routes and networks there. 


PostBus generated operating income of 

579 million francs in the year under review 

(2005: 559 million francs) and operating 

result of 28 million francs (2005: 

29 million francs). The rise in income was 

due primarily to business in France, higher 

transport revenues, higher compensation 

in accordance with the Railways Act 

and to additional income from management 

and engineering services. However, 

there were also some negative effects, 

such as compensation cuts resulting from 

pressure to save in the public sector. 

The number of passengers and kilometres 

travelled rose by almost 1 percent. 

Routes in Switzerland 

In the Kandertal and Worb regions, the 

16 routes put out to tender in 2006 were 

all acquired by PostBus. PostBus Switzerland 

AG thus proved that it can compete 

successfully. By contrast, it did not win 

the 17 lines put out to tender in the Sar-

ganserland region. However, after negotiations 

with the competition and the 

Canton of St Gallen, PostBus will continue 

to operate six of these routes. 

Routes abroad 

In France, the French subsidiary CarPostal 

France SARL commenced operation of the 

new urban network in Haguenau (Alsace) 

with routes covering 86 kilometres, four 

scheduled services, an on-call bus service 

and schoolbus routes. Since last year, 

CarPostal has also operated the bus network 

in Bourg-en-Bresse and 14 neighbouring 

municipalities in the Rhône-Alpes 

region. 

Increasing productivity and quality 

Increasing productivity is key in terms of 

boosting competitiveness. To achieve this, 

a project team at PostBus conducted interviews, 

workshops and individual analyses 

in which it examined vehicles, staff 

deployment, tools/methods and sub-contractors. 

As part of a nationwide project, 

specific measures will now be defined 

and implemented. 

In 2006, PostBus concluded an advantageous 

agreement with manufacturers 

concerning the life cycle costs of a vehicle. 

The goal was to determine the cumulative 

costs over a vehicle’s useful life and 

thus to give the manufacturer a greater 

role in the responsibility for its maintenance. 

At the same time, it is expected 

that costs for the actual operation of the 

buses will be lower. 

PostBus measured the quality of its services 

using test customers. This system 

had previously been tested over a two-year 

period and now replaced the evaluation 

by in-house inspectors. Passengers and 

their needs are the focus of the study. 

Criteria such as reliability, drivers, passenger 

comfort, onboard information, sales 

and dealing with customer concerns were 

among the topics surveyed. 

Following the reorganization in 2005 

and the reduction of around 50 full-time 

administrative positions, plus the redistribution 

of tasks that same year, great 

importance was attached to developing 

the corporate culture in 2006. Key to 

PostBus’s ability to perform is the idea 

that economies of scale and the knowhow 

that is available throughout Switzerland 

should be put to the best possible 

use. 

Anniversary of an image-driver 

PostBus Switzerland celebrated its 100th 

anniversary in the presence of Moritz 

Leuenberger, President of the Swiss Confederation, 

and numerous representatives 

from the political and business communities 

at a national event in Aarberg. What 

began as the first Postbus service between 

Berne and etligen in 1906 has 

developed over time to become a nation- 


| Passenger Transport 

25 

al transport company, an image-driver for 

Swiss Post and a symbol of the reliability 

and quality for which Switzerland stands. 

Celebrations were held in every PostBus 

region during the anniversary year as a 

way of thanking its passengers and customers 

for their loyalty. 

Outlook 

Competition in the field of regional transport 

will continue to be a challenge for 

PostBus in the years to come. There will 

be a continuing need to boost productivity. 

By expanding its system management 

and launching an innovation drive, Post- 

Bus will secure the necessary competitive 

advantages. 




5) Swiss Post’s basic service; terms and definitions 

14) Subsidiaries CEC 


Key figures – Passenger Transport 

Quality 

Customer satisfaction: Leisure an occasional 

2006 2005 

passengers, tourists Index 81 81 

Customer satisfaction: commuters 

Market share 

Index 73 73 

Regional passenger transport (rail/road) % 15 15 

Order business % 45 45 

Tourism (road-based only) % 4 4 


26 Annual Geschäftsbericht Report | Service-oriented 2006 | International 

Service-oriented | International 

One of the best 

in the global 

letter market. 

In 2006, Swiss Post International (SPI) 

celebrated its tenth anniversary with 

sales that exceeded one billion francs 

for the first time. The domestic market 

picked up slightly, and there was 

a disproportionately high increase in 

international business. This success is 

based on a targeted expansion policy 

in profitable niche markets through 

its own subsidiaries as well as firstclass 

franchise partnerships and alliances. 

In its domestic market, SPI successfully 

defended its leadership in cross-border 

documents and goods mailing against 

growing competition. It was also able to 

increase its international market shares. 

This was due to ongoing liberalization in 

the key European markets, where national 

postal organizations are feeling the 

pressure on prices, leaving SPI with better 

market opportunities. 

SPI’s overriding objective is to strengthen 

the Group as a whole by achieving profitable 

growth outside Switzerland. There 

are four main thrusts to its strategy: in the 

Swiss market, SPI wants to retain its leading 

position in import and export through 

new products, the bundling of international 

services and excellent quality. In the 

international courier, express and parcels 

market (CEP), SPI cooperates with strong 

alliance partners. In the cross-border letter 

market, SPI wants to grow – through its 

own subsidiaries in the key European 

countries, in Asia and the USA, and with 

franchising partnerships in countries with 

a growing cross-border letter market. This 

business includes letters and the closely 

related B2C small consignments market. 

The “Swiss Post” brand ultimately serves 

to open doors in the international letter 

market, which is characterized by major 

differences, and which is thus being built 

up systematically. 

Key figures – International 

Result 

2006 2005 


Of which: reserved services % 15.1 19.2 


Quantities (export + import Switzerland) 


Export letters Millions of items sent 199.7 191.7 

Export parcels Millions of items sent 1.4 1.4 

Of which: GLS Millions of items sent 0.5 0.5 

Export courier items (TNT Swiss Post AG) Millions of items sent 1.6 1.4 

Import letters Millions of items sent 230.6 220.4 

Import parcels Millions of items sent 3.5 3.2 1 

Of which: GLS Millions of items sent 0.8 0.7 

Import courier (EMS) Millions of items sent 0.3 0.3 

1 Previous year‘s figures adjusted

In 2006, SPI generated most of its sales 

in Switzerland. It extended contracts with 

all its major customers – including UBS 

and the UN. Business increased slightly. 

Abroad, SPI gained additional market 

share and thus made a major contribution 

to achieving sales in excess of one billion 

francs for the first time. Growth was primarily 

organic, with acquisitions accounting 

for just one percent. SPI is one of the 

leading global companies in the crossborder 

letter market. 

SPI in Switzerland 

To safeguard its import/export business, 

Swiss Post International extended its contract 

with the international GLS network 

in 2006. Business customers thus have 

a reliable and inexpensive road-based 

shipping option for parcels in addition to 

the traditional postal channel and the TNT 

Swiss Post express product. Every third 

parcel that arrives in or leaves Switzerland 

via SPI is transported through the GLS 

network. In 2006, Swiss Post GLS forwarded 

1.3 million parcels with a total 

weight of 8.024 tonnes. 

TNT Swiss Post, a joint venture between 

SPI and utch-based TNT, offers Swiss 

companies international express and 

courier services in over 200 countries. 

Compared with 2005, the most successful 

year to date, TNT Swiss Post was 

able to increase its sales by around 20 

percent. The URGENT courier product 

for private and small customers generated 

the highest sales growth (8%) since its 

launch. 

The SAT (Société d’Affretement et de 

Transit) subsidiary is one of the leading 

providers in the field of EU customs clearance 

as the EU fiscal representative and 

saves its customers multiple customs 

duties. SAT began using a paperless customs 

clearance procedure in 2006. SPI 

expanded its offering by taking over FM 

Verzollungs AG on 1 January 2007. 

SPI abroad 

Germany, Austria, France and Italy are the 

key European markets for SPI. SPI has its 

own subsidiaries in Belgium, the Netherlands, 

the UK, the USA and Sweden. Last 

year, SPI acquired its previous franchising 

partner in Asia. The new subsidiary SPI 

Singapore operates in Singapore, Malaysia 

and Hong Kong. SPI is hoping to gain 

access to China via a strong local distribution 

partner in Shanghai. primeMail – a 

joint venture with the German-based 

Hermes logistics group – lifted its sales as 

a special provider of heavy and largeformat 

letters on the German market to 

30 million francs. A central logistics platform 

for all European subsidiaries was 

commissioned in ietzenbach, south of 

Frankfurt, in autumn 2006. In Italy, SPI 

acquired another large logistics customer 

through its company Swiss Post Porta a 

Porta and began operating one of the 

most up-to-date packing plants for office 

and IT items. 


| International 

27 

A strong brand 

SPI closely combines the Swiss Post brand 

with the Swiss values of punctuality, 

reliability, flexibility and entrepreneurship. 

“Reach your customers even faster, more 

reliably, more punctually – with Swiss Post 

International”: this was the message 

used to advertise the expertise and quality 

of SPI in 78 European trade journals. 

Outlook 

In 2007, SPI will continue to pursue its 

strategy, defend its market share in Switzerland 

with innovative offerings and 

evaluate additional opportunities abroad 

for growth in the B2C and national domestic 

markets. At the Universal Postal 

Union (UPU) in Berne, SPI leads the working 

group that is keen to switch from a 

political to a cost-based system for calculating 

terminal dues. 




Key figures – International 

Employees 

2006 2005 


Of which: in Switzerland 

Quality 

Compliance with delivery times for 


international letters (import) 

Compliance with delivery times for 

% of items 95.3 95.1 

international letters (export) % of items 92.4 90.3 

Customer satisfaction: business customers Index 75 73 

Customer satisfaction, letters Index 74 74 

Customer satisfaction, parcels 

Market share, export to Switzerland 

Index 75 74 

Mail As a % of sales 74 62 1 

Parcels As a % of sales 58 63 

Courier (TNT Swiss Post AG) As a % of sales 35 30 

1 Previous year‘s figures adjusted 


28 Annual Geschäftsbericht Report | Service-oriented 2006 | Post Office Network 

Service-oriented | Post Office Network 

Others come and go; 

Swiss Post stays the 

course. 

200 innovative self-service agencies 

with attractive opening hours and 

a more efficient distribution of tasks 

among post offices. Swiss Post is 

using these measures to gear its post 

office network more closely to customer 

behaviour and improve its 

profitability, enabling it to continue 

offering the public a nationwide, 

high-quality basic service. 

In 2006, the Post Office Network unit 

generated income of 1,781 million francs 

and posted a profit of 19 million francs. 

Salse with other brand-name articles 

rose from 390 to 405 million francs 

(3.9 percent). 

42 percent fewer letters, 42 percent 

fewer parcels and 14 percent fewer inpayments 

– and all since 2000. Post office 

counters are being used less and less, 

which is resulting in too many uncovered 

costs in the post office network. These 

came to 412 million francs in 2006, compared 

with 442 million francs in 2005. 

Fiercer competition, the substitution of 

the physical letter with electronic means 

of communication and generally changing 

customer behaviour resulted in declining 

revenues from the basic postal service 

in 2006, while customers’ demands in 

terms of quality remained high, or were 

even stepped up. ( 4, 5) 

The response to this trend is the Ymago 

project ( 8), on which Swiss Post has 

been conducting a broad dialogue with 

all stakeholder groups since 2004. Possible 

new solutions were tested in 2005- 

06 with customers in pilot projects. They 

showed that the post office network 

could be managed more efficiently and 

with a greater focus on customers. An 

improved agency model (“the post office 

in the village shop” principle) offers more 

attractive opening times and a basic 

range of letters and parcels that covers 

almost all the services that are in daily 

demand. In addition, the Postcard can be 

used to make cashless inpayments and to 

withdraw cash. The model was well re- 

ceived by customers in the pilot study and 

produced a positive response among 

agency partners and local authorities. 

Around 200 agencies based on the new 

model will be set up by the end of 2008. 

The customer focus will also be increased 

with Ymago at the post offices. Specifically, 

this will involve an internal redistribution 

of tasks. Beginning in autumn 

2007, the planning and administration of 

some 200 post offices will be centralized. 

The other post offices will then be able 

to devote their energies even more to 

sales and to offering customers advice at 

the post office counter. This will not 

change anything in the range of services. 

In the pilot studies, the new form of organization 

was rated positively by both 

customers and employees. In addition, 

the test post offices achieved significantly 

better figures. 

Thanks to optimized processes, Swiss Post 

can boost the productivity of its post office 

network. Around 400 jobs will be cut 

Key figures – Post Office Network 

Result 

2006 2005 


Of which: net sales of other brand-name articles CHF million 405 390 1 


Infrastructure contribution 

Quantities 


Acceptance of letters In millions 1053 1140 

Acceptance of parcels In millions 31 32 

Acceptance of inpayments 

Employees 

In millions 222 230 

Headcount Full-time equivalents 11501 12046

over a period of two years. Swiss Post 

expects this step to be taken without any 

redundancies. As of 2009, Swiss Post 

looks set to improve its annual results by 

just over 50 million francs thanks to 

Ymago. 

Non-postal articles and services 

Whereas revenues from the basic postal 

service declined, Swiss Post was able to 

consolidate its position as a provider of 

non-postal articles such as bicycle and 

motorway permits, computers and office 

and stationery items and compensate for 

some of the network costs. 

With mobile phones, competitive pressure 

in a market that is saturated at a high level 

led to a steady decline in prices, 

accentuated by the market entry of Coop 

and Migros. Thanks to higher sales compared 

with the previous year, Swiss Post 

was able to defend both its sales and 

its profit. It was able to gain a foothold in 

the market for MP3 players, despite the 

dissolution of its strategic partnership 

with Apple. The launch of new products 

such as the Sony Connect Card for music 

downloads was also a contributing factor. 

The range of books – which changes 

each month – proved especially popular. 

A basic range of stationery articles did 

well. A range of seasonal items, such as 

travel accessories, also met with a positive 

response. 

Building on the successful distribution of 

life insurance products, the post offices 

have been offering additional insurance 

products such as motor vehicle, household, 

liability or legal expenses insurance 

since 1 March 2006. Short-term travel 

insurance can be taken out directly at the 

post office counter. 

The cooperation with Ticketcorner was 

very gratifying. Customers made good 

use of the service, which was launched at 

the beginning of 2006, and ticket sales 

rose steadily. Sales were expanded to 

1.000 post offices in August. The cooperation 

with the Mobility CarSharing 

scheme also proved fruitful. Express registration 

at the 78 PostShops that offer the 

Mobility service was particularly popular. 

The “PostShop Online” service, which 

was launched in autumn 2005, has developed 

into a genuine success story. The 

new online shopping service expands the 

limited space at the post offices into 

a virtual shopping centre. At the end of 

2006, PostShop Online already had a 

wide range of over 500.000 articles. 

A door-opener for the whole of 


With a network of around 2.500 post 

offices, Swiss Post creates physical proximity 

to its customers. This local presence 

is a key strategic success factor for the 

other business units too. Since the beginning 

of 2006, the Post Offices Network 


| Post Office Network 

29 

has stepped up its support for small and 

medium-sized enterprises (SMEs) in order 

to improve customer relations with them. 

PostMail and PostLogistics in particular 

benefit from the newly established 221 

SME support units. The nationwide post 

office network continues to play an important 

role for the successful distribution 

of financial services too. irect consulting 

services via video and the telephone are 

planned for several hundred post offices. 

In addition, customers will be able to 

open and access an account directly at 

the counter. 7 

Outlook 

evelopments in the next few years will 

be shaped by the implementation of 

Ymago. The internal distribution of tasks 

between post offices is being reorganized 

in 2007. Around 200 agencies based on 

the new model will be set up by the end 

of 2008. 





5) Swiss Post’s basic service; terms and definitions 



Key figures – Post Office Network 

Quality 

2006 2005 

Customer satisfaction: private customers Index 87 86 

Customer satisfaction: SMEs 

Cover 

Index 81 80 

Post offices Number 2493 2531 

Post offices with payment transactions Number 2345 2379 

Post offices without payment transactions Number 12 10 

Agencies with payment transactions Number 111 119 

Agencies without payment transactions Number 18 16 

PostMobil stops Number 7 7 

Home-delivery service Localities 1023 991 


30 Annual Geschäftsbericht Report | Service-oriented 2006 | Philately 

Service-oriented | Philately 

Successful with 

Swiss quality. 

In an environment shaped by growing 

electronic competition and de- 

clining collector numbers in Switzerland, 

Philately wants to safeguard its 

core business with innovative, creative 

and high-quality stamps and aims 

to recruit new collectors abroad. As a 

new business activity, Philately will 

build up a mail-order business with 

quality Swiss products. 

Things are not easy for the postage 

stamp: owing to e-substitution – the replacement 

of physical items with electronic 

communication – demand for 

printed stamps is declining. Stamps are 

also facing competition from electronic 

franking solutions. This is compounded by 

the fact that stamp-collecting is no longer 

so popular as a hobby among young 

people. Sales of philatelic products thus 

Key figures – Philately 

Result 

2006 2005 


Of which: non-philatelic products % 2 1 


Quantities 


New stamps Number 40 45 

Standing orders in Switzerland Number 52890 57450 

Standing orders abroad 

Employees 

Number 19970 22600 

Headcount 

Quality 


Customer satisfaction Index 84 84 


dropped from 9.2 million in 2005 to 

8 million at end-2006. Sales will stabilize 

at this high level in the next few years. 

In this situation, Philately will continue to 

focus on its core business – the sale of 

philatelic products. It aims to retain existing 

customers in Switzerland and gain 

new ones abroad with stamps characterized 

by innovation, quality and creativity 

and which convey an emotional message. 

Philately will build up a mail-order service 

as a new area of business. The business 

unit will benefit from the high value 

of the stamp, which can be transferred to 

the articles which are manufactured 

largely in Switzerland and are of excellent 

quality. 

Philately again generated a good operating 

result of twelve million francs. The 

decline of two million francs compared 

with 2005 was due to the change in the 

cost structure in the mail-order business 

area, which got off to a promising start 

with over 200 articles and revenues of 1.0 

million francs. Sales at the online shop 8 

went up from 4.1 to 7.2 million francs. 9 

Superior stamps 

In 2006, the anniversary stamps commemorating 

the centenaries of PostBus, BLS and 

the Simplon Tunnel were all very popular. 

Philately launched a four-year series featuring 

international artists who will present 

their views of Switzerland on stamps. imitri 

the clown continued the series of 

“Prominent individuals in Switzerland designing 

stamps” with his letters juggler. 

The special stamp marking the new UN 

Human Rights Council, based in Geneva, 

was a spontaneous achievement accomplished 

in record time. The panorama 

stamp featuring the “Eiger-Mönch-Jungfrau” 

hung above the Parliament Building 

in Berne on a fabric banner for six weeks. 

Outlook 

In 2007 too, Philately will issue artistic 

and innovative stamps that recall current 

events. There are plans to greatly expand 

the range in the mail-order business. 

Annual Report | Service-oriented Verantwortungsbewusst | Philately 31 

8 www.post.ch/philashop 

9 The figures for Philately are set out in the segment report under 

“other”, see p. 108. 




32 Annual Geschäftsbericht Report | Service-oriented 2006 | GHP and MailSource 

Service-oriented | GHP and MailSource 

Creating growth 

with post-related 

services. 

The two groups GHP and MailSource 

comprise around thirty subsidaries. 

GHP concentrates on dialogue market- 

ing and customer management, while 

MailSource handles in-house postal 

services plus scanning and archiving. 

They thus extend the postal value 

chain with upstream and downstream 

services. Swiss Post’s strategy is to 

develop solutions that will compensate 

for declining volumes in its core 

letters and parcels fields, create 

growth and exploit synergies for its 

Swiss and international business. 

GHP – fit for the future with Swiss Post 

The GHP group operates in the growing 

market for customer loyalty programmes 

and dialogue marketing. Whether at the 

point of sale, via fax, the Internet, telephone 

or by post – GHP enables all types 

of interaction between companies and 

their end customers. GHP is the market 

leader in Germany for health insurance 

cards. 

The purchase of around two-thirds of 

GHP’s shares in summer 2006 will enable 

Swiss Post to globalize its business from a 

base in Germany, grow along the postal 

value chain and create synergies for a 

Swiss health card. It will also acquire new 

strategic options in terms of delivery to 

end customers and document management, 

which is important for both Swiss 

Post International and Mail Source. GHP 

opens up new opportunities for Swiss 

Post in an increasingly liberalized market. 

2006 was a year of change for GHP, 

which had been looking for a strategic 

partner since the management buyout at 

the end of 2005. The company hopes to 

continue stabilizing as a result of its association 

with Swiss Post in order to achieve 

strong growth again after the restructuring, 

especially in terms of outsourcing its 

entire dialogue and document management 

business processes. 

GHP’s total sales easily exceeded the figures 

of the previous year. Clear increases 

were posted particularly in the Cards 

and Mail segments. GHP’s good performance 

in 2006 was in line with the general 

trend in the dialogue marketing sector, 

although increased customer spending 

initially only offset the decline of previous 

years. Furthermore, the dialogue marketing 

companies felt the slump in the classic 

mail-order business, which had been a 

steady source of income for many years. 

Internally, restructuring and consolidation 

measures in all three business segments 

(Mail, Cards, Services), characterized the 

business year. The focus on core business 

continued in the individual segments. In 

the Mail segment this means that, thanks 

to the variety of technology available, GHP 

can produce mailings in larger quantities, 

with a higher degree of customization and 

in a short time. The core competencies of 

the Cards segment include the production 

and personalization of credit, bank, chip, 

prepaid plus customer and club cards in a 

specially secure environment with a high 

level of service. Since 2006, the Services 

segment has concentrated on multi-channel 

communication, document management, 

IT-based system solutions in dialogue 

marketing and support for customer loyalty 

programmes. The measures implemented 

enabled it to just break into the profit zone 

again. 

Outlook 

The gradual integration of GHP into Swiss 

Post Group will be continued in 2007, 

with strategic, sales and financial proc- 

Key figures – GHP and MailSource 

Result 

2006 2005 



Employees 


Headcount MailSource Full-time equivalents 2053 1062 

Headcount GHP1 Full-time equivalents 947 – 

1 The GHP Group was acquired in september 2006. 


esses being taken over by the Group and 

the services offered in the different markets 

being coordinated. With restructuring 

under way and the renewed focus on 

the market, there are plans to increase 

sales and raise the operating result (EBIT) 

group-wide. 

MailSource Group – on the way to 

becoming the global market leader 

The market is increasingly calling for services 

that can not only cover in-house mail 

but can also handle upstream and downstream 

tasks such as scanning, indexing 

and archiving. There is also a clear trend 

towards the international award of large 

transactions. Customers prefer to deal 

with a single partner worldwide. Mail- 

Source aims to be the European and global 

market leader in the field of in-house 

postal and related services. 

The MailSource Group pursues four strategic 

thrusts. It is expanding its service 

and technology competencies, and it is 

increasing its global geographic presence 

so as to offer services wherever its customers 

operate. It also aims to acquire 

additional shares in its existing markets 

and promote group-wide processes and 

structures (knowledge transfer and exchange 

of best practices) to ensure the 

integration and management of companies 

that have been newly acquired as 

part of its growth strategy. With these 

four strategic thrusts, the Group is aiming 

for double-digit growth with an industrystandard 

EBIT in the future as well. 

In 2006, the activities of the MailSource 

Group were characterized by organic 

growth at existing national companies 

(especially in the UK and Switzerland) and 

by acquisitions and the related expansion 

of its geographic presence to the USA 

and France. In January, MailSource took 

over Forrest Solutions in the USA with 

over 1.000 employees. In February it acquired 

oneReason in Switzerland, and in 

July, it established a new subsidiary in 

France and took over the contracts and 

staff of Euro Postal Services. 

Sales growth at MailSource Group came 

to 79 percent in 2006. The threshold of 

200 million francs with an industry-standard 

EBIT was thus exceeded for the first 

time. Factoring out acquisitions, organic 

growth came to 25 percent with an industry-standard 

EBIT. 


| GHP and MailSource 

33 

Outlook 

Highlights of 2007 will include the renewal 

of major contracts in Italy, Switzerland 

and the UK. As part of the expansion 

of the Group’s geographic presence, 

market studies will be conducted for the 

eastern European and Asian markets. To 

increase both the geographic presence 

and technological competency, additional 

acquisitions and partnerships will be assessed 

on an ongoing basis. 




34 Annual Geschäftsbericht Report | Service-oriented 2006 | Service units 

Service-oriented | Service units 

Efficiency: the hallmark 

of a strong Swiss Post. 

Swiss Post’s service units ensure 

that the business units can effectively 

satisfy their customers’ needs. The 

offering bears comparison with the 

industry standards. 

Swiss Post Information Technology 

The Information Technology service unit 

generated operating income of 210 

million francs in 2006 with a staff of 629. 

In Switzerland it provides the basic 

infrastructure for IT and telecommunications 

for the parent company and the 

subsidiaries, develops company-wide solutions 

and ensures stable operation, 

maintenance and support. Information 

Technology provides standardized 

services. This means that economies of 

scale can be exploited more effectively 

and the price-performance ratio 

optimized. The ongoing development of 

the management system is based on 

EFQM standards. A benchmark analysis of 

four national IT providers has shown 

that the Information Technology unit is 

competitive in terms of prices and services. 

In 2006, Information Technology developed 

a price calculation tool for customer-specific 

prices for PostLogistics. This is 

an important success factor in terms of 

competing with other providers. Information 

Technology also launched its major 

“Telephony optimization” project for 

Swiss Post, which envisages the introduction 

of IP telephony (merger of telephone 

and data networks) and a proprietary 

national corporate number (058 

number) for Swiss Post by the end of

2010. The focus here will be on costsavings 

as well as technological innovation. 

The Mobile Entry Platform (MEP) was also 

set up. It enables employees to access 

relevant data via this platform while on 

the move. The “Synchronization over the 

air” service, that allows Outlook data (emails, 

calendar, contacts) to be transferred 

to a P A or Smartphone, is already 

in use. 

A further strategically important project is 

EAI (Enterprise Application Integration). 

EAI supports the Information Technology 

unit and other units in coping more effectively 

with the enormous number of interfaces 

and thus improving data integrity. 

For instance, the PostShop Online and the 

link between PostFinance’s yellowbill and 

the SAP systems have already been 

equipped with EAI. The REMA project 

also uses EAI. 

In 2006, Information Technology developed 

a number of enterprise services such 

as e-billing and order management which 

used SAP NetWeaver, thus laying the 

foundation on which to develop this platform 

for business process management. 

SAP certification of Information Technology 

as a customer centre of excellence 

was also renewed, thus further confirming 

the unit’s performance. 

Real Estate 

This service unit handles all the properties 

of Swiss Post, regardless of whether they 

are owned or rented. It offers the units all 

the services needed to prepare and use 

premises. Approximately 1.300 owned 

and 1,800 rented buildings are managed, 

maintained and developed with a staff of 

around 170. In 2006, Swiss Post Real 

Estate generated operating income of 550 

million francs both within Swiss Post and 

on the market. Buildings no longer needed 

for operating purposes will be sold, 

new premises will be sought on the market 

or planned and built together with 

general contractors, as will remodellings, 

redevelopments and renovations. Swiss 

Post remodels larger centres earmarked 

for a new purpose (Sihlpost Zurich, 

Schanzenpost Berne, Centre postale 

Lausanne) in cooperation with investors 

and, if necessary, sells them. 

The rapidly changing needs of the units 

are a major challenge for real estate management. 

Smaller properties in peripheral 

regions and mid-sized premises in urban 

areas (e.g. sorting locations) are being 

vacated, while large buildings such as the 

new letter centres (REMA) have to be 

built. 

For Swiss Post Real Estate these substantial 

changes are generating vacant buildings 

that have to be filled by letting them 

to third parties or putting them to a 

new use if they are no longer needed for 

operating purposes. At the moment, 

Swiss Post Real Estate is planning and 

developing the former letter sorting centres 

in Lucerne and Zurich, which are 

located at attractive sites next to the station, 

for their future use as university institutes. 

When space in Swiss Post premises 

is vacated, the Real Estate specialists 

are called on to provide creative, flexible 

solutions. The new tenants often have 

other security and usage requirements 

than the post offices, whose operations 

are similar to those of banks. 

Service House 

As a service unit with around 2.800 employees 

ranging from all-rounders to 

qualified specialists, Service House Post 

manages more than 3.000 properties and 

ensures that, in terms of building and 

technical installations, a total area of over 


| Service units 

35 

2.8 million square metres is maintained, 

cleaned, secured and looked after with a 

full range of individual services. In 2006, 

Service House generated operating income 

of 124 million francs from in-house 

and external services and posted an operating 

result of 9 million francs. 

In 2006, Service House Post expanded its 

competitiveness as a provider of comprehensive 

facility management services. 

With a balanced level of proprietary services 

it ensures uniform and cost-optimized 

facility management. In the last three 

years, for instance, costs in infrastructurerelated 

building management have been 

greatly reduced. 

One quarter of the space that requires 

cleaning will be eliminated as part of the 

REMA project (reorganization of letter 

processing) in 2008. This will be replaced 

by the new REMA letter centres, which 

will be larger and will thus require new 

cleaning techniques and methods. 

The service unit guarantees the availability 

of building and technical installations in 

all Swiss Post buildings, round the clock 

and throughout Switzerland. Together 

with its main client, Swiss Post Real Estate, 

Service House Post is a unique player 

in the market and can offer external customers 

attractive services which are largely 

developed in-house.

36 Annual Geschäftsbericht Report | Innovative 2006 

Innovative 

Even greater 

professionalism 

through innovation. 

“ If I pay the bill for my coffee 

machine at the post office, 

I have the receipt in black and 

white.” 

Renate Helber 

Housewife, Basel 

Deregulation of postal markets, 

changing customer behaviour 

and new technologies are all posing 

challenges for Swiss Post. Conventional 

products such as letters and 

parcels are being replaced by electronic 

means of communication. The 

consequences are falling margins and 

lower earnings. On the other hand, 

Swiss Post is benefiting from the 

opportunities that these same technologies 

offer. We use them to increase 

efficiency, optimize processes 

and develop innovative, customeroriented 

services. In this way we 

strengthen our core business and 

grow with new post-related, electronic 

offers both in Switzerland and 

abroad. 

Innovations are a key element in our 

strategy 10 . They improve competitiveness 

in our core business and enable us to 

achieve profitable growth in new postrelated 

services. Corporate evelopment 

supports the innovation processes of the 

units, if so requested. Important tools in 

innovation management include Postidea, 

the ideas management system of Swiss 

Post, and Compass, the knowledge and 

innovation platform. 11 

Strategic customer management 

Strategic Customer Management bundles 

knowledge and experience, existing offers 

and innovations into individual customer 

solutions on a company-wide basis. An 

understanding of the customer’s value 

chain is key to developing business mod-

els that benefit both parties. Combined 

with our strengths as a logistics service 

provider, this understanding enables us to 

be highly efficient and make optimum 

use of resources – from the idea through 

to concluding the sale. 

With sales of over one billion francs, Strategic 

Customer Management is responsible 

for over 30 large customers in 

the financial and insurance, retail, telecommunications 

and media and healthcare 

sectors as well as public administrations 

and around one hundred customers 

in the mail-order sector. 

The main project in 2006 was the acquisition 

of Swisscom’s Output Management 

by ocumentServices AG, a Swiss Post 

subsidiary. Swiss Post took on all 58 employees 

as well as the existing infrastructure. 

ocumentServices AG, which processes 

over one hundred million letters for 

Swisscom each year, is thus expanding its 

leading position in the Swiss market as a 

specialist in customer communications. 

The success of our innovation strategy 

can be seen in the sales shares of newly 

introduced products (see the Figures 

Innovative table at the end of the chapter) 

and is also reflected in the recognition 

we receive each year. 

Awards 

In 2006 we received the following awards 

for innovation and good management: 

– Master of Swiss Web 

Best website in Switzerland: 

www.immosearch.ch (also the winner 

in the technology innovation category) 

is the real estate platform of Räber Information 

Management GmbH, which 

has been owned by Swiss Post since 

2004. It links searches for property to a 

map and is particularly easy to use. 

– Seal of quality for 

Webstamp (in the categories business 

efficiency and online marketing, see 

below) and irectpoint from PostMail 

(in the online marketing category). 

– 

Esprix 

Swiss quality prize for business excellence 

for TNT Swiss Post AG (finalist 

2006) and Post Offices & Sales (winner 

in 2007) 

– Accenture award 

In a study of profitable growth among 

retail banks, conducted by the Accenture 

consulting group, PostFinance 

came out on top, together with 

Freiburger Kantonalbank and St Galler 

Kantonalbank. 

– Best Innovators 

The consulting company A. T. Kearny 

chooses the “Best Innovators” in Switzerland 

each year. A key factor in the 

evaluation is whether a culture of innovation 

prevails at a company and 

among its management. First place was 

shared by PostFinance and the logistics 

company Kühne + Nagel. 


Report | Innovative 

“ The most convenient way 

to make payments for 

my business is via yellownet.” 

Peter Glaser 

Manager of repair service for coffee machines, Liestal 

37


Our most innovative projects 

WebStamp: create your own stamps 

online 

“Click – print – send” – it’s that easy for 

customers to design and print stamps 

online themselves. In November 2006, six 

months after WebStamp was launched, a 

customer produced the millionth digital 

stamp. With its proprietary product, Web- 

Stamp, PostMail is right on the mark in 

terms of gauging current needs. Customers 

can create a personal stamp using a 

photo, and small-business customers can 

create their own company stamp. They 

can pay with their Postcard or credit card, 

without any surcharge. WebStamp was 

developed from a software-based 

franking solution launched in 2004 for 

business customers. The digital stamp will 

undergo further development in 2007. 

In order to take greater account of the 

needs of small and mid-sized companies, 

letters to other countries and parcels 

mailed within Switzerland can also be 

franked online. Address data can be 

imported directly into the franking solution. 

A simple program can be used 

to optimize the pictures on the stamp. 

www.postmail.ch/WebStamp 

IncaMail: 

registered electronic letters 

Nowadays, most documents are created 

and mailed electronically. It is practical 

and saves money. However, to ensure that 

a letter is received by the right person, it 

must be printed out and sent by registered 

post. This is known as a media discontinuity. 

With IncaMail, PostMail now 

documents the entire course of an electronic 

item. Using the Public Key Infrastructure 

(PKI) coding procedure, IncaMail 

meets all the requirements that a “regular” 

registered letter has to satisfy. The 

content of the message is not visible to 

anyone but the addressee, as it is coded. 

The sender signs the content, the transmission 

of the message is documented, 

and the recipient confirms receipt by signing 

before the e-mail is opened. This is 

sent to the sender and serves to prove 

that the item was mailed. 

As a requirement for IncaMail, the sender 

and the recipient must obtain a recognized 

electronic certificate for the signature 

and coding from PostMail. The PKI 

solution with certificates was developed 

by the SwissSign AG subsidiary, which 

was authorized in 2006 to issue qualified 

electronic certificates that conform to the 

Federal Act on Electronic Signatures 

(ZertES). PostMail has thus taken an important 

step forward in implementing its 

e-business strategy. It is now in a position 

to expand its offering in the field of secure 

signatures and coding of electronic 

data and documents. 

www.incamail.ch 

The term “Inca” stands for: 

I Integrity: the content remains unchanged; 

N Non-repudiability: dispatch and receipt cannot be 

contested; 

C Confidentiality: only the recipient can read the 

message; 

A Authenticity: the participants are identified. 

“ Paperless account 

management also benefits 

the environment.” 

Manuel Rohrer 

Product manager at PostFinance, Berne

“ Addressed bulk mailings are 

part of our core business.” 

Patrice Gard 

Head of Business Mail, PostMail, Berne 

Digital printing: 

up-to-date everywhere 

PostMail launched digital printing in 2006. 

This means that, even where great distances 

are involved, domestic and 

foreign newspapers reach their readers 

on the date of publication, in the original 

format and printed on newsprint. 

One of the most modern digital printing 

machines is located in Merenschwand 

in Canton Aargau. The central location 

means that newspapers can be rapidly 

delivered to a wider area. Since September 

2006, each issue of Switzerland’s 

French-language business newspaper 

“L’AGEFI” has been delivered to 300 subscribers 

in Ticino on the publication date. 

igital printing combines the latest digital 

printing technology with the core competencies 

of PostMail: the largest distribution 

network in Switzerland along with knowhow 

and experience when it comes to the 

daily delivery of print media. igital printing 

is an efficient solution not only for the 

delivery of Swiss newspapers in remote 

regions but also for getting foreign newspapers 

to their readers on the date of 

publication. With the “offset look and 

feel” digital printing method, newspapers 

can now be printed which are every bit as 

good as newspapers produced using offset 

rotary printing: original paper, original 

format, best print quality, multiple colours 

As the unit prices remain constant, the 

process is therefore especially suitable for 

small print runs. It is also ideal for daily 

papers that want to make their current 

edition immediately available – no matter 

where in the world the readers are12 . 

www.postmail.ch 

Key figures – Innovative 2006 2005 

PostMail Share of new products as a % 1 1.32 0.99 

Swiss Post International Share of new products as a % 1 3.43 2.90 

PostFinance Share of new products as a % 1 4.40 2.88 

Logistics services Share of new products as a % 1 2.58 2.75 

PostBus AG Share of new products as a % 1 0.00 0.00 

Post Office Network Share of new products as a % 1 3.61 1.10 

1 Share of net sales from new products launched in the past four years in terms of net sales for the unit 




39 

The export module of Swiss Post GLS: 

mailing parcels is almost automated 

With the software developed by the Swiss 

Post subsidiary GLS and scales manufacturer 

Mettler Toledo, mailing parcels 

abroad is almost an automated process. 

The program, which is installed in the 

company’s mailing line, imports the order 

information from the ERP system (enterprise 

resource planning), weighs the 

parcels, creates and prints all the different 

barcode labels, creates packing and dispatch 

lists, which are made available to the 

ERP system, and transmits all the parcel 

data to the GLS system before the parcels 

are physically mailed. Items being mailed 

to other countries in Europe can thus 

be sent just as quickly and transparently as 

domestic items. Customers can track the 

location of their parcel at all times.


In addition to efficient management, the 

online connection to Swiss Post’s GLS system 

makes exporting parcels more reliable. 

ata exchange means that errors can be 

avoided. The parcel information transmitted 

to Swiss Post GLS, such as the postcode, is 

immediately checked for logical accuracy. 

Any numbers that appear in the wrong order 

or incomplete addresses can thus be 

corrected even before the parcel begins its 

journey. 

Because the parcel data are already in the 

GLS system, the export customs clearance 

process can be started before the parcels are 

physically cleared through customs in Basel. 

This saves time, so that parcels can be handed 

in later, and reduces the transport times 

– for instance to just one day for Germany, 

Austria and France. 

The new module has already been used 

successfully by KESO in Richterswil, the manufacturer 

of keys and security systems. For 

KESO there is no longer any difference 

between domestic and international parcels 

in terms of processing. Everything follows 

the same shipping procedure. The next joint 

customer projects with Mettler Toledo are 

already in the preparatory phase. 

www.swisspost-gls.ch 

PickPost: delivering parcels to where 

customers are 

PickPost enables customers – regardless of 

where they live – to collect their parcels 

wherever it is most practical for them: at a 

railway station, a filling station, on their way 

to work, during their lunch break or after 

work. PostLogistics is thus responding to the 

changing needs of people who go out to 

work and are therefore not at home during 

the day to take receipt of parcels. The solu- 

tion is simple: a customer who registers with 

PickPost can have parcels sent to a PickPost 

collection point. As soon as a parcel arrives, 

the customer receives a message by SMS 

and/or e-mail. There are no additional costs 

for the sender or the recipient. 

PickPost was launched back in 2003. The 

network underwent major expansion 

in 2006 and now has over 300 collection 

points. These include 44 SBB stations which, 

because the large number of commuters, 

are particularly popular locations. 

www.post.ch/pickpost 

Video consulting: 

PostFinance available on-screen 

PostFinance is breaking new ground in 

financial consulting. It is the first financial 

institution in Switzerland to offer its customers 

on-screen financial advice, bringing 

its financial expertise to bear on the 

large numbers of customers who visit 

post offices. This gives PostFinance a local 

presence and brings it even closer to its 

customers. Following a successful pilot 

launch between October 2005 and March 

2006 in Geneva and Montreux, the video 

consulting service will be introduced at 

several hundred post offices throughout 

Switzerland in the course of 2007 as part 

of the expansion of the PostFinance network. 

The technical infrastructure is integrated 

into a compact advisory module 

that is set up at the post offices. As soon 

as customers have activated the video 

consulting via the touch screen, they are 

connected with a financial advisor. The 

customer and advisor can see and hear 

each other thanks to a camera, microphone 

and telephone receiver; communication 

is thus easier and more personal. 13 

www.postfinance.ch

PostLogistics: 

a clever buyer for third parties 

The idea is beautifully simple: PostLogistics 

bundles orders from several retailers 

and can thus purchase at preferential 

rates for wholesalers from the consumer 

goods group Procter & Gamble and position 

itself as the leading innovative logistics 

services provider in Switzerland. 

It goes without saying that this system 

only makes sense if PostLogistics does 

not siphon off a margin. Revenues are 

generated not on the resale but with the 

logistics. The affiliated retailers can also 

make use of a number of other services 

at the central warehouse in Muttenz to 

which P&G delivers all the merchandise: 

labelling goods, affixing price labels, 

bundling special offers, etc. PostLogistics 

fulfils individual wishes right up to the 

point where the retailers only have to 

place the goods on their shelves. P&G 

can offer its customers better service. 

Although there is an additional interface 

between the manufacturer and the retailer, 

P&G still has full control of its 

brand policy. It is responsible for handling 

follow-up supplies and for maintaining 

inventories at the Muttenz warehouse. 

PostLogistics also supplies all the relevant 

data such as customer-specific sales and 

quantities, inventories and special-offer 

data. The solution, which was launched 

in April 2006, has paid off for all the 

partners involved. P&G is thus relieved of 

administrative and logistical tasks, the 

retailers benefit from higher margins and 

simpler order procedures, while PostLogistics 

consolidates its position as the 

leading provider of innovative logistics 

services 

www.postlogistics.ch 

10 See also the “Service-oriented, Group” chapter, page 12. 

11 For more on ideas and knowledge management, see 

the “Prudent” chapter, page 42. 

12 See also the “Service-oriented, PostMail” chapter, page 18. 

13 To read more about the strategy of PostFinance, see 

the “Service-oriented, financial services” chapter, page 20. 






41

42 Annual Geschäftsbericht Report | Prudent 2006 

Prudent 

Genuine innovation 

that protects 

existing assets. 

Our employees and their knowledge, 

experience and expertise are the bedrock 

of our efficiency and innovative 

force. Our common values, convictions 

and behaviour, together with a 

strong brand, are the cornerstones of 

our success. In order to actively shape 

the future we must be able to finance 

investments from our own resources 

and generate a return on the invested 

capital that is appropriate to the level 

of risk. Prudent use of the resources 

we need to provide our services is of 

paramount importance. Taking care of 

and protecting existing assets calls 

for management systems that help us 

in this endeavour. 

Jobs 

The average headcount for the whole of 

Swiss Post Group increased by 1.105 fulltime 

equivalents in 2006. The trend of 

the past few years continued: the number 

of employees at the parent company de- 

“ Goods 

should be 

transported 

by rail.” 

Nadège Hirsch 

Student, Troinex 

creased while that for the Group as a 

whole increased. The increase within the 

Group is due primarily to acquisitions 

of subsidiaries. A comparison with the 

year 2000 shows how sharp the increase 

has been at the Swiss and international 

subsidiaries over the past few years: in 

2000 Swiss Post had 19 subsidiaries – it 

now has around 80 in Switzerland and 

abroad. The greatest increase occurred in 

autumn 2006 with the acquisition of a 

majority stake in the German-based GHP 

Group, which employs 947 full-time 

equivalents. In addition to outsourcings, 

declining mail volumes and optimized 

logistics processes contributed to the fall

in headcount at the parent company 

(1.707 full-time equivalents). This affected 

the Post Offices & Sales, PostLogistics 

and PostMail units in particular. At the 

same time we also created new jobs: for 

instance 136 at PostFinance and 27 at 

Swiss Post Information Technology. 

Investing in our employees 

Occupational training, further training 

and the development of successors are 

ways in which we can ensure that our 

employees have the necessary know-how 

and skills to strengthen our ability to perform 

and further develop our innovative 

force. The principles of leadership and 

cooperation determine how we interact 

with one another. ( 15) 

Occupational training 

Swiss Post offers numerous young people 

a training position each year. ( 16, 17) It 

thus makes an important contribution 

towards ensuring sufficient numbers of 

“ We cannot trans- 

port everything 

by rail alone; 

we need combined 

solutions.” 

Christian Roduit 

Head of Transport, 

PostLogistics, 

Lausanne 

qualified employees for Switzerland as a 

location for industry, supporting 14 occupations 

that are all recognized by the Federal 

Office for Training and Technology. 

Qualified trainers, mostly apprentice-supervisors, 

are in charge of the trainees. 

Specialized regional managers check the 

quality of on-the-job training on a regular 

basis. The number of trainees has doubled 

between 1998 and 2003. The overall 

number has remained constant since 2004 

but has increased for certain occupations. 

For retail specialists, for instance, we created 

100 new traineeships and will offer 

additional training places. Whereas there 

is currently a shortage of traineeships, 

in future there will be a shortage of trainees. 

We already expect to see a sharp 

decline in the number of school leavers in 

2008. It will thus be all the more important 

for us to instill enthusiasm in young 

people for the variety of occupations at 

Swiss Post while offering them an opportunity 

to gain experience at other companies. 

One example is the exchange 

project, implemented for the first time in 

2006, which enabled Swiss Post retail 

specialists to gain experience at Migros. 

This gives them an opportunity to put 

their skills to the test in a different environment 

and to gain confidence in dealing 

with customers. 


Report | Prudent 

43 

Further training 

Swiss Post attaches great importance to 

progressive staff development. For this 

purpose it employs over 100 people as HR 

specialists, internal and external coaches, 

and trainers. Its topmost goal is to promote 

management, social, specialist and 

self-awareness skills. The central element is 

the Group-wide in-house range of further 

training opportunities. This includes seminars 

and workshops on change management, 

leadership, customer focus, coaching 

and networked thinking and action. In 

2006, around 250 one-day and severalday 

seminars and workshops, attended by 

some 3,000 employees and managers,


were conducted. As a company that works 

in three languages, we foster the linguistic 

skills of our employees in German, French 

and Italian. For instance, employees may 

combine a language course with work in 

another language region in Switzerland. 

We also offer courses in English and Spanish 

and support stays abroad. In 2006 the 

internal language-training unit conducted 

247 language courses. These courses, 

whether one-to-one, weekly or intensive, 

were attended by 692 employees. IT 

courses, management courses or training 

in working techniques and project management 

round out the in-house range of 

continuing education. The extent to which 

Swiss Post supports internal or external 

basic and further training in terms of time 

and financial aid depends on the employee’s 

individual need for development and 

on the company’s need for qualified employees. 

We want to offer our management-level 

staff future-oriented development opportunities 

while also promoting an entrepreneurial 

and team-oriented corporate culture. 

The guidelines and specifications for 

management training have been defined 

for the Group as a whole. In 2006, as 

part of the management development 

programme, the 400 most senior managers 

at Swiss Post took a critical look at 

their own management styles, how they 

handle their own personal resources and 

those of their teams. 

Talented successors 

Swiss Post is a strong competitor for the 

brightest young graduates on the market. 

We are usually able to choose between 

several highly qualified contenders when 

recruiting for vacant positions. We have a 

good reputation among university graduates 

who value a socially responsible employer 

as well as a good salary. 

At Swiss Post, we offer graduates the 

opportunity to take the first steps in their 

career and to build up skills in marketing, 

communication, logistics, corporate 

development, finance and controlling, IT 

and human resources. 

In 2006, 40 students and graduates completed 

an internship at Swiss Post. An 

internship usually lasts between three 

and nine months, offers the intern a 

chance to become actively involved in 

projects and can be started as of the fifth 

semester of study. Last year we had 22 

interns. They gained experienced in various 

units during a period of 18 months 

and were involved in the development 

and execution of strategic projects. 

We also provide support for doctoral and 

other university-level dissertations that 

deal with the topic of postal organizations 

and business. 

Swiss Post uses a mentor programme to 

prepare talented young successors for 

taking on greater responsibility. An expe- 

“ The know-how of the 

employees plays an important 

role in competing to 

provide the best solution.” 

Urs Erzinger 

employee in parcel centre Frauenfeld, Logistics specialist trainee, PostLogistics, 

Frauenfeld 

rienced manager introduces the potential 

successor to Swiss Post business over a 

period of twelve months. In this way 

young employees can build up a network 

of contacts and participate in a multifaceted 

transfer of knowledge. uring 

the year under review, two women and 

four men took part in the programme. 

Performance awareness on 

the increase 

We are committed to a performanceoriented 

and partnership-based corporate 

culture. This is why we need motivated 

employees. It is also the reason why dedication 

and motivation were measured 

for the first time in 2006 in our annual 

employee survey. ( 18) The level of employee 

satisfaction measured in the past 

did not say much about their commitment 

and zeal. At 70 out of a total of 

100 points, the value for our employees’ 

motivation and dedication is high. 

Two-thirds of our staff participated in the 

employee survey – the highest number 

ever. The level of satisfaction was 67 out 

of 100 points, in line with the previous 

year. The employees rated their salary and 

line managers positively, while their assessments 

of workload and development 

opportunities and of cooperation between 

the units were more critical. To 

improve the last point, the programmes 

for management training were stepped 

up.

The survey results confirm that employees 

take an interest in the company’s development 

and want to contribute to its 

success. With these values Swiss Post is 

again one of the leaders in a comparison 

with other companies. 

The Swiss Post brand 

The Swiss Post brand is one of the best 

known in Switzerland. It is perceived as 

distinctly friendly and trustworthy and 

stands for our vision, which can be summarized 

in one sentence: “Swiss Post – 

the backbone of the basic service – generates 

value and acts in a socially 

responsible manner.” It thus expresses 

our core values: credible, entrepreneurial 

and cooperative. We nurture and develop 

the Swiss Post brand with great care as 

one of our most important and valuable 

assets. 

Thanks to systematic brand management 

we were also able to steadily increase the 

monetary value of our brand in the past 

few years. The value of all postal brands 

has risen by an additional twelve percent 

to over half a billion francs compared with 

2005. The “Swiss Post” core brand accounts 

for around 70 percent of this figure, 

while the four flagship brands PostFinance, 

PostBus, PostLogistics and PostMail 

contribute around 30 percent. The strong 

Swiss Post brand enables the company, 

with its flagship brands and the innovative 

force and dynamism they symbolize, to 

stand out from its competitors. At the 

same time, the closeness of the flagship 

brands to the core brand shows that Swiss 

Post’s future is as a single company. 

Value orientation among 

management 

One of the key goals of Swiss Post management 

is to increase the company value. 

This will give us the necessary scope 

to implement our vision of an efficient 

and socially responsible Swiss Post. 

Value-oriented management ensures that 

the invested capital is earned back and 

that we generate a rate of return that at 

least covers the capital costs. Moreover, 

our entrepreneurial measures are assessed 

in terms of their contribution to the company’s 

value. This applies to the organization 

of procurement processes as well 

as to the planning of procedures or the 

establishment of distribution strategies. 

Boosting efficiency and performance are 

thus long-term tasks of good business 

management. 

The contribution to the company’s value is 

measured in terms of value added (VA). 

VA is an absolute figure (millions of francs) 

and indicates how much value added the 

company as a whole or a specific unit 

generates. 14 Value added is created if the 

operating result, adjusted for taxes, exceeds 

the interest levied on the invested 

capital. Besides the income statement 



45 

(operating result), this method takes both 

risks (capital costs) and capital invested 

(net invested capital) into account. 

The value added for the entire company is 

included as a key figure in the calculation 

of the variable performance component 

of management remuneration. Management 

is thus motivated to think and act 

systematically in accordance with genuine, 

long-term value generation. 

Resource and energy efficiency 

In view of the high energy and commodity 

prices and the future CO2 tax, prudent 

use of resources, particularly energy, is a 

key success factor for the company’s profitable 

development. 

In 2006 we were able to reduce consumption 

of heat, fuel and electricity by 

6.3 percent at the end-use energy level 

and by 8.1 percent at the primary energy 

level compared with 2000. At the same 

time, we increased the share of renewable 

energies in our total energy consumption 

to 7.9 and 8.9 percent respectively. 

Our environmental strategy ( 19) is 

based on four main thrusts: reducing 

costs, minimizing risk, creating market 

opportunities and consolidating an 

ecological corporate culture, which also 

improves our opportunities on the labour 

market. 

“ Competition for the best 

people will be even fiercer 

in future.” 

Yves-André Jeandupeux 

Head of Human Resources, Swiss Post, Berne


Key figures – Prudent 2006 2005 

Employees (Swiss Post Group) Full-time equivalents 42178 41073 

Employees (Swiss Post) Full-time equivalents 35326 37033 

Trainees at Swiss Post Group in Switzerland Persons 1429 1465 

New trainees Persons 566 512 

Total departure rate at Swiss Post As a % of 

average headcount 10.9 8.3 

Fluctuation rate (voluntary departures) 

at Swiss Post 

As a % of 

average headcount 3.5 3.6 

Employee satisfaction Index 67 67 

Motivation/willingness to perform Index 70 – 

Monetary brand value of Swiss Post CHF million 535 479 

2005 2004 

Energy consumption Primary energy total year1 4716832 4684751 

Of which: electricity Primary energy total year1 2001319 2081949 

Of which: heat Primary energy total year1 597880 517211 

Of which: fuel Primary energy total year1 2117632 2085591 

Of which: energy from renewable sources % 8.9 9.2 

Paper Millions of A4 sheets 108.2 91.9 

1 Primary energy consumption is the consumption of non-renewable energy resources such as oil, gas, coal or uranium. In contrast to final energy, 

which considers only the amount of energy needed for use, energy resources include all upstream levels of energy provision. 


Each year we conduct a comprehensive 

eco-audit ( 20). On the basis of this 

analysis we draw the the necessary environmental 

conclusions and set our objectives. 

The focus is on energy consumption 

– in the transport of goods and passengers, 

operation of buildings and plant and 

employee commuting. Two other key 

aspects are water and paper consumption. 

Our environmental objectives ( 11) are 

based primarily on the requirements 

of “Swiss Energy” regarding energy efficiency 

and Switzerland’s obligations 

under the Kyoto protocol regarding CO2 

reduction. ( 12) In the energy field 

we pursue two main thrusts: firstly, increasing 

energy efficiency and secondly 

increasing the share of renewable energies. 

Heat 

Since 2000 we have reduced our heat 

requirements by 13.9 percent at the enduse 

energy level and by 14.7 percent at 

the primary energy level. uring the 

same period we have increased the share 

of energy from renewable sources from 

7.5 percent to 17.1 percent. We have 

thus been able to maintain our heating 

costs at the same level despite rising 

prices. 

In terms of heat, implementation of the 

Minergy standard is the most important 

measure for energy efficiency. The 

construction method alone can reduce 

energy consumption by more than half 

throughout the building’s entire useful 

life. New builds, renovations and refurbishments 

such as the parcel centres 

already set up in aillens, Frauenfeld and 

Härkingen and the new letter centres are 

completed to this standard. 

If a building has been built to be energyefficient 

it must be operated accordingly. 

We have concluded energy-savings contracts 

with a system of bonuses and surcharges 

with external specialists for the 

eleven most energy-intensive properties. 

They guarantee a reduction in consumption 

of 15 percent, which is to be realized 

through optimizing the company’s building 

installations. The best example is the

post office building in Lausanne, where 

heat consumption was reduced by 

over 30 percent, electricity consumption 

by more than 15 percent and water 

consumption by 20 percent. 

As an additional measure when all the 

potential efficiencies have been exhausted 

in the field of heat, as much renewable 

energy as possible is used to cover 

the remaining energy requirements. In 

this way we can protect finite resources 

and reduce the impact on the climate. 15 

Fuel 

We have reduced fuel consumption for 

passenger and goods transport (parent 

company, including third-party transport) 

by 2.5 percent at the end-use energy level 

and by 2.3 percent at the primary energy 

level since 2000. The slight reduction in 

consumption was too little to offset the 

rising fuel prices. 

Optimum transport planning takes top 

priority in reducing fuel consumption 16 . 

As the type of vehicle has a long-term 

effect on our fuel consumption, we consider 

both economic and ecological aspects 

when sourcing our vehicle fleet. 

Economic viability is assessed on the basis 

of all the features included in the purchase 

price, and the evaluation of environmental 

compatibility is based on environmental 

impact (energy label). As a 

third measure, we train our drivers to 

adopt an ecological driving style (Eco- 

Style, Eco- rive). However, it is difficult to 

reconcile the requirements of local distribution, 

i.e. the frequent change between 

accelerating and braking, with an energyefficient 

driving style. Here we are looking 

for new technological solutions (e.g. electric 

or gas-powered vehicles). 

Finally, we also want to contribute to protecting 

the environment with renewable 

or low-CO2-emission fuels 17 : For instance, 

at three of our filling stations, drivers can 

use Benzin5 (E5 fuel, addition of 5 percent 

ethanol), and in Bienne we operate 

our own natural gas filling station. 

Electricity 

Since 2000 we have reduced our electricity 

consumption by 9.9 percent at the 

end-use energy level and by 11.7 percent 

at the primary energy level. At the same 

time we have purchased certified renewable 

electricity that accounts for one percent 

of total consumption. 

For electricity too, the efficient use of this 

highest-quality and most expensive form 

of energy takes top priority. As with heat, 

the most important tool in the building 

field (ventilation, air conditioning) is energy-saving 

contracts with external specialists. 

In offices, the networks, computers and 

printers use a lot of energy. There is also 

considerable potential for increasing 

efficiency. In 2003, over 17,000 printers, 

fax machines and copiers were in use 

throughout Swiss Post. As part of the 

Print Output Optimization ( OPO) 

project, the number of pieces of equipment 

was reduced to 5,500 and the 

number of models cut to six. OPO resulted 

not only in better utilization and 

more efficient management but also 

in reduced energy consumption. Our new 

printers heat up quickly. They can then 

be put on standby mode sooner, which 

saves energy. 

Today, to enable updates to be installed, 

computers must not be switched off over 

night. The latest PCs are, however, put 

into “sleep” mode by the network in the 

evening and activated only to update 

software. Implementation is planned for 

2007. 

In addition to efficient use of electricity, 

renewability also plays an important role. 

Since 1997, Swiss Post has purchased 

600,000 kilowatt hours of electricity from 

the Mont-Crosin wind power plant in the 

Bernese Jura and is one of its biggest 

customers. Since 2005, Swiss Post has 

purchased 1.1 million kilowatt hours of 

green electricity of “nature made star” 

quality. This quality meets the strictest 

international ecological criteria at the 

local level. The electricity is generated by 

Rätia Energie at drinking water, wind 

power and biomass power plants. With 

these projects Swiss Post meets the objectives 

of “Swiss Energy” in the field of 

renewable energies. 



47 

Paper 

The environmental impact of paper consumption 

is minor, compared with the 

other environmental impacts at Swiss Post 

(0.3 percent of total impact). By 2010 we 

want to stabilize consumption at the 

2000 level. By 2005, consumption had 

risen by 15 percent to over 108 million 

sheets of A4 paper per year. This corresponds 

to 2,635 sheets per employee. 

As the users have a crucial impact on 

paper consumption, we are stepping up 

our training efforts. The goal is to increase 

the use of printing on both sides 

of the sheet or of printing several pages 

on one sheet. In addition, the introduction 

of Piazza (SAP Enterprise Portal) in 

HR administration will mean that more 

and more processes can be conducted 

without using paper. There is also considerable 

potential for saving paper in the 

field of electronic salary statements, 

which are available to employees but are 

not yet widely used. Extrapolated to the 

company as a whole, this would save 

over 500,000 sheets per year in theory. 

When we introduce digital employee dossiers 

(electronic dossiers) we will also be 

taking a further step towards paperless 

HR administration. 

Effective management systems 

Effective and lean management systems 

are of key strategic importance in a rapidly 

changing environment. They are a 

crucial resource for our success. The more 

Swiss Post is able to design these systems

48 Annual Geschäftsbericht Report | Prudent 

2006 

efficiently and with its goals in mind, the 

more competitive we will be. Risk and 

security management enable us to deal 

proactively with threats; quality and envi- 

ronmental management set standards; 

and knowledge and ideas management 

makes use of the potential for further 

development of Swiss Post. 

Risk management 

Swiss Post perceives efficient and forwardlooking 

risk management ( 21) as an 

important and value-adding management 

task. Risk management is one of the core 

functions of entrepreneurial activity and a 

key element of our success. The goal is 

not to avoid all risks but to create room 

for manoeuvre that enables us to enter 

into risks in full knowledge of their implications 

and overall context. ealing with 

risks in a controlled manner is intended to 

help us use existing opportunities systematically 

and to enhance the company’s 

success. Risk management supports the 

achievement of our business goals by creating 

transparency about the risk situation 

(as the basis for strategic and operational 

decisions), by identifying possible threats 

to our assets, earnings and financial situation, 

by prioritizing the risks and need 

for action and by taking measures to limit 

risks to an acceptable level 18 

Knowledge management 

Since 2002, knowledge management at 

Swiss Post has been advanced steadily by 

the Corporate evelopment unit. The 

goal is to connect and make accessible 

the vast body of knowledge and experience 

that exists in a company like Swiss 

Post with its 55,000 employees. 

A knowledge, information and networking 

hub has been built up systematically 

on the intranet under the name Compass. 

The event platform contains reports 

on events and participant lists; employees 

can input their experiences on the 

project platform; employees can find 

colleagues with the same or similar tasks 

and interests in the “communities of 

practice”; the Services Purchasing support 

unit helps staff to evaluate offers 

from external providers and to conclude 

agreements, and all papers or theses 

written by Swiss Post employees about 

their company are listed on the “diploma” 

platform. At the end of 2006, 108 

communities were active and over 40 

theses had been filed. Finally, the “yellow 

pages” are a company-wide directory in 

which employees can list their skills and 

experience and draw attention to their 

particular strengths. 

Postorama is the series of events at which 

qualified internal and external speakers 

give brief presentations on current issues 

relating to Swiss Post. Around six events 

take place each year outside working 

hours; they are attended by an average of 

70 to 120 employees. 

Ideas management 

“Postidea” is Swiss Post’s modern and 

efficient ideas management system. It 

offers all employees the opportunity to 

become actively involved in the company’s 

development. Ideas management 

makes a significant contribution to closing 

the gap between planned improvements 

and latent performance reserves in 

the company. Postidea is a management 

tool that has a positive effect on the company’s 

processes, results and culture. 

In October 2005 Swiss Post won the Recognition 

Prize of the University of Berne 

for its ideas management. Swiss Post puts 

its trust in the creativity of its employees 

and knows that success comes from 

people with ideas. Good ideas are the 

capital of the future. At the end of 2006, 

the ten thousandth idea since the launch 

of Postidea was submitted. Of nearly 

5000 ideas submitted in 2006, 20 percent 

have been implemented and over two 

million francs saved. 19

Quality management 

Swiss Post aims for quality. Each unit 

knows that customer needs can be satisfied 

only with products and services that 

meet the highest requirements. A large 

number of units are geared to the comprehensive 

excellence model of the EFQM 

(European Foundation for Quality Management), 

which includes quality of management, 

processes and results. 

One example of approach is the Passenger 

Transport business area, which is facing 

growing competitive and price pressures 

from customers (cantons and the 

Confederation). PostBus Switzerland AG 

uses the EFQM model in implementing its 

strategy. It seeks not only to maintain a 

high quality of operations but also to 

continuously improve all of the company’s 

activities. The results are analysed and the 

company’s processes optimized. The aim 

is for employees, customers, the owner 

and other stakeholders of PostBus to 

benefit from the high service quality. 

Environmental management 

The environmental management system 

( 20) serves to reconcile ecological and 

economic objectives within the framework 

of Swiss Post’s environmental policy 

( 22). It defines the processes, objectives 

and measures, monitors attainment of 

goals and underpins reporting. 

We continuously adapt the environmental 

management system to operating conditions. 

As Swiss Post comprises a growing 

number of subsidiaries, data input was 

expanded from the parent company 

to the entire Group in 2006. We included 

the environmental impact of employee 

commutes for the first time. For the future, 

data input will need to be optimized 

further – especially in the fields of transport, 

where a growing number of external 

service providers work on behalf of 

Swiss Post. Owing to the heating periods 

used for the data, the environmental figures 

currently lag one year behind the 

business figures. This will be adjusted in 

2007. 

Security management 

Swiss Post takes appropriate security 

measures to make a significant contribution 

to generating credibility and trust. 

The goals of our security management 

system ( 23) are to protect the health 

and lives of our customers, partners and 

employees, preserve our tangible and 

intangible assets, the goods, data and 

information entrusted to us, and to safeguard 

the functionality and operational 

continuity of our company. We also take 

appropriate measures to ensure rapid, 

targeted intervention in the event of malfunctions 

or incidents. Security is an integral 

component of our corporate culture. 

We systematically meet the statutory 

security requirements and empower our 

employees and their line managers to 

make an active contribution towards promoting 

security in their working environment. 

As part of our security management programme 

and against the backdrop 

of avian flu and the related risk of a pandemic, 

we developed a comprehensive 

pandemic plan in 2006. The key business 

processes were identified and then assessed 

in terms of the possible impact of 

a pandemic, and the contingency plans 

developed by the units and subsidiaries 

were updated accordingly. Possible protective 

measures were evaluated for the 

employees, and the necessary precautions 

taken. Similar measures were taken to 

provide for the danger of earthquakes 

and other natural disasters. Swiss Post 

aims to continue providing its basic service 

even in the face of any such emergency. 

Annual Report | Prudent 

14 See also the “Service-oriented, Group” chapter, page 12. 

15 See also the “Considerate” chapter, page 50. 



18 The risk situation at Swiss Post in 2006 is described in the “Corporate 

governance” chapter, page 73. 


49 





15) Principles of leadership and cooperation 

16) Swiss Post’s guideline on occupational training 

17) Employment conditions for Swiss Post trainees 

18) Being satisfied is not necessarily the same as 

being motivated 

19) Swiss Post’s environmental strategy 

20) Swiss Post’s environmental management system 

21) Risk policy 

22) Swiss Post’s environmental policy 

23) Swiss Post’s security policy 


50 Annual Geschäftsbericht Report | Considerate 2006 

Considerate 

Keeping an eye 

on existing infrastructure 

while 

undergoing change. 

Swiss Post endeavours to avoid placing 

unnecessary burdens on its employees, 

society and the environment. 

We seek solutions that also help increase 

the company’s value. We realize 

that this is not always possible. 

However, it is our obligation to minimize 

these burdens as much as we 

can – not least because we are convinced 

that this is ultimately in our 

own interest as well. Considerate and 

respectful handling of existing infrastructure 

and resources guides our 

action when change occurs, and is the 

cornerstone of successful partnership 

– making it a core value of Swiss Post. 

Consideration for employees 

Swiss Post is undergoing change. To remain 

competitive, it must fall into line with 

the rules of the market, provide economically 

viable services and, if necessary, reorganize 

business lines. However, we do 

everything we can to implement job-securing 

measures and to avoid dismissals. For 

the employees concerned, we first look for 

“ I’ve worked 

all my life 

at Swiss Post.” 

Bernhard Riedo 

Retired postal carrier, 

üdingen

a new job within the company, support 

them by offering opportunities for additional 

qualifications, advise them in our 

own job centre and assist those who want 

to take up self-employment. Between 

2002 (when the Swiss Post CEC came into 

force) and 2006 we negotiated 18 redundancy 

schemes with the trade unions for 

the Group as a whole. The job centre offers 

employees an opportunity to assess 

their situation, career advice and seminars 

on topics such as marketability, dealing 

with change, career planning and applications. 

( 24) It attempts to fill vacant positions 

with suitable candidates. In 2006, the 

nine job centre advisors conducted 99 

seminars with 1497 participants and 1362 

individual advisory discussions. 

In recent years, the necessary restructuring 

and reorganization was carried out 

while taking the employees’ concerns 

fully into account. ismissals for businessrelated 

reasons were the exception: there 

were 68 such cases in 2006 (2005: 161). 

Swiss Post vigorously promotes the marketability 

of its employees with a monopoly 

training scheme (e.g. former uni- 

formed postal employees). ValiPoste is a 

programme developed in cooperation 

with the Federal Office for Occupational 

Training and Technology and aimed at 

improving professional mobility. Building 

on their original training and supplemented 

with specific further courses, employees 

can acquire a Swiss federal proficiency 

certificate as a logistics assistant. We 

anticipate that 1,300 employees will have 

taken part in the ValiPoste scheme by 

2008. 

Occupational health promotion and 

absence management 

Swiss Post engages in active occupational 

health promotion. We want to reduce 

illness- and accident-related absences, 

improve the performance capacity and 

well-being of our employees and sensitize 

them to the topic of health through special 

campaigns. In order to achieve these 

goals, Swiss Post launched the “Fit” programme 

in 2002, which comprises health 

promotion and workplace safety. In 2006, 

the number of absences due to illness 

or accidents declined by 0.5 to 11.5 days 

per employee (parent company). The 

“Fit” programme also enhances the com- 

Annual Report | Considerate 

51 

“ The decline in 

letter volume is 

forcing us to 

reduce the number 

of jobs.” 

Thomas Baur 

Head of elivery, PostMail, 

Berne


“ I don’t know if I’ll be working 

at Swiss Post in future.” 

Andrea Rutschmann 

Administrative assistant, letters centre PostMail, Aarau 

petence of our line managers. Using management 

methods such as “propräsenz” 

or “BGFplus” they learn how to deal with 

absentee employees. “Fit” includes prevention 

programmes such as the test 

package entitled “Balanced mobility 

and nutrition”. Other measures include 

fit@work meals in the staff canteens, 

cardio-vascular checkups, ergonomically 

designed workstations, and seminars 

aimed at helping people give up smoking. 

All trainees receive a bonus paid into their 

account if they do not smoke during their 

traineeship. Around 50 part-time health 

coordinators work throughout the Swiss 

Post Group. In addition to “Fit”, employees 

and line managers can make use of 

other services: these include training sessions 

and guidelines on addiction prevention, 

sexual harassment and bullying or 

seminars on the topic of “Stress at the 

workplace”. As part of its commitment to 

running as a sport, Swiss Post financed 

2,223 free starts in order to motivate employees 

to take part in amateur runs 20 . 

Workplace safety and health 

protection 

In 2002 there were 3,000 occupational 

accidents and 7,500 non-occupational 

accidents. The costs amounted to 102 

million francs. Every day, an average of 

600 employees did not show up for work 

owing to accidents. These costs became 

a competitive factor in the deregulated 

market. We therefore want to increase 

safety at work Group-wide with the “Fit” 

programme. 

Accidents are just the tip of the iceberg. 

In statistical terms, there are one fatal 

accident, 30 accidents involving serious 

injuries and 300 accidents causing minor 

injuries for every 30,000 unsafe actions. 

Successful accident prevention therefore 

begins at the base of the accident pyramid, 

i.e. with measures to reduce unsafe 

actions. The “Fit” programme aims at 

reducing the number of occupational 

accidents by 50 percent and of non-occupational 

accidents by 30 percent in the 

medium term. As with health promotion, 

safety at work efforts began by reinforcing 

the management responsibility of line 

managers. The Corporate Security unit set 

up a work safety and health protection 

management system and supported the 

units in eliminating hazards and in designing 

ergonomic working environments. 

Employees were involved at team 

meetings and information events as well 

as in campaigns. 

The project is having an impact; the 

number of accidents has dropped from 

6.9 occupational accidents per 100 

FTEs to 6.1, corresponding to an improvement 

of 10 percent. The prevention work 

is paying off in financial terms, and the 

programme is having a demonstrable 

leverage effect. Building up a sustainable 

safety culture and exploiting the considerable 

potential that is still available will 

remain a key task for us. 

Overall environmental impact will 

continue to decline 

ocumenting the overall environmental 

impact of Swss Post is handled by the 

environmental management system 

( 20) and supported by eco-audit analyses. 

All operational activities for all products 

and services of Swiss Post, ranging 

from procurement of raw materials 

through operations to disposal, are recorded. 

This includes: passenger transport 

(Postbus service), goods transport (letters 

and parcels), operating energy (electricity 

and heat), disposables (paper, water, 

waste), and employee transport (commuting). 

From this comprehensive viewpoint, the 

overall environmental impact has fallen by

15 percent compared with the reference 

year 2000 ( 11), and compared with 

1998 the reduction is even 22 percent. 

This impressively demonstrates that our 

environmental strategy ( 19) is effective 

and that our efforts to implement our 

environmental policy ( 22) are paying off. 

Somewhat more than half of Swiss Post’s 

entire environmental impact is caused by 

the transport of passengers and goods by 

road and by transport of goods by rail. 

Two-thirds of the environmental impact 

of transports are generated by PostBus 

AG. However, public transport on the 

roads supports substitution of individual 

transport in the overall Swiss traffic system. 

A single Postbus carrying 40 passengers 

replaces up to 40 cars. 

Goods transports 

The climatic impact of rail-based goods 

transport declined by 24 percent compared 

with 2000, while that of roadbased 

transport increased by 3 percent. 

Of the overall transport service in 2005 

amounting to 65.9 million kilometres, 

road-based transport accounted for 62 

percent (parent company, including transports 

carried out by third-party companies) 

and rail-based transport accounted 

for 38 percent. Maximum utilization of 

the nationwide service came to 80 percent, 

while average utilization was 59 

percent. espite an increase in roadbased 

transport, we succeeded in reducing 

the environmental impact of goods 

transports by one percent 21 . 

Goods transports are subject to considerable 

financial and time-based pressure. In 

recent years this has resulted in a shift of 

goods from rail to road-based transport. 

Thanks to the ideal distribution of transports 

between roads and rail (modal 

split), intelligent transport planning, fleet 

management that takes environmental 

aspects into account and use of low-emission 

vehicles, we endeavour to make our 

transport services as environmentally 

friendly as possible. Of course, this is always 

subject to the cost pressure dictated 

by competition. 

A number of different transport management 

systems are used to organize transports 

in the most efficient way. Orders are 

entered into the system and grouped into 

transport orders in the actual planning 

stage. Use of these systems allows us to 

identify synergies and avoid redundant 

trips in a specific or similar period. More- 


Report | Considerate 

53 

“ Our profit allows us 

to invest in ensuring 

that our employees are 

competitive on the labour 

market.” 

Philip Pätzold 

Head of Human Resources, PostMail, Berne 

over, suitable tools such as database applications 

are being developed to further 

reduce the number of trips with empty 

vehicles. 

In terms of vehicle sourcing, we focus on 

the environmental compatibility of the 

vehicles we use. As a rule, delivery vehicles 

are used for up to seven years. The 

useful life depends on the kilometres travelled 

and maintenance costs per year. 

Vehicles are replaced on the basis of economic 

criteria. Newly purchased vehicles 

feature state-of-the-art engine and exhaust 

emission control technology. 

We are currently testing alternatives to 

our conventional vehicles. In addition to 

electrically powered scooters, these 

include vehicles that can be operated 

with environmentally friendly natural gas 

and fuel. Compared with diesel vehicles, 

vehicles powered by natural gas produce 

50 percent less carbon monoxide, 100 

percent less carbon dioxide (CO2, in vehicles 

using biogas), 80 percent fewer 

nitrogen oxides, virtually no sulphur dioxide 

and no soot particles. We now 

have one of the biggest gas-powered 

vehicle fleets in Switzerland with over 30 

vehicles.


Passenger transport 

The new timetable that came into force 

on 10 ecember 2006 resulted in improved 

Postbus services in many parts of 

Switzerland. espite this expansion, we 

succeeded in reducing both energy consumption 

and climatic impact by four 

percent 22 . 

Besides matching the size of the vehicles 

to demand, PostBus reduces the environmental 

impact by sourcing vehicles with 

the latest exhaust emission technology, 

re-equipping existing vehicles and using 

environmentally friendly fuels. 

To further reduce exhaust emissions, in 

particular nitrogen oxides and particulate 

matter (PM10), PostBus intends to equip 

150 new vehicles per year with soot particle 

filters that meet the EEV (Enhanced 

Environmentally Friendly Vehicles) standard, 

beginning in 2007. This standard is 

more stringent than the Euro-5 standard 

planned for 2009. In 2006 only vehicles 

with soot particle filters were delivered 

(114 vehicles). Moreover, a total of 

around 140 vehicles were re-equipped 

with soot particle filters as part of a special 

campaign. At the end of 2006, 693 

vehicles had a soot particle filter, corresponding 

to around one third of the Postbus 

fleet, including minibuses. 

More and more cantons, as customers of 

road-based public transport services, are 

requiring particle filters to be fitted and 

they are also financing the additional 

investment and high maintenance costs. 

For vehicles with soot particle filters, Post- 

Bus uses low-emission diesel fuel. This 

environmentally friendly diesel fuel, in 

combination with the latest engine and 

catalytic converter technology, makes it 

possible to virtually eliminate harmful 

emissions subject to statutory limits. Post- 

Bus was already using eleven gas-powered 

buses as early as 2001. Since then, 

the gas-powered bus fleet in the Principality 

of Liechtenstein has grown to 25 

vehicles. 

Business trips 

Business trips conducted on behalf of 

Swiss Post should be as environmentally 

friendly as possible. According to the 

CEC, public transport should therefore be 

used wherever possible. For this purpose 

we offer our employees day-return train 

tickets. They can also make use of 1,850 

vehicles for business trips – of which 

35 are hybrid vehicles – at 1,000 Mobility 

CarSharing 23 locations. 

Of course, virtual business trips are even 

more environmentally friendly and 

less costly. This e-meeting option has 

been available since ecember 2006. With 

a mouse-click, participants enter a virtual 

room at the beginning of the discussion 

or training session. The integrated conference 

link permits communication without 

a telephone, and participants can also see 

what is displayed on the other monitors. 

Journeys to work are often 

underestimated 

Optimization of parcel and letter handling 

processes and the restructuring of the 

post office network resulted in centralization 

and longer journeys to work. These 

were recorded for the Group as a whole 

for the first time in 2005. Every day, Swiss 

Post employees travel more than 1.3 million 

kilometres on their way to and from 

work – which is more than four times the 

distance between the earth and the 

moon. Over half of all employees travel 

by car, just under one third by public 

transport, while six percent walk or use a 

bicycle. 

In terms of overall environmental impact, 

employee traffic – at 14 percent – is thus 

almost as high as the total road-based 

goods transports of Swiss Post (16 percent), 

or three times the environmental 

impact resulting from heat used by all 

Swiss Post buildings. 

In order to promote use of environmentally 

friendly public transport, Swiss Post – 

in cooperation with Swiss Federal Railways 

– offers general rail passes for its 

active employees at a 20 percent discount. 

This discount now applies also to 

reduced-price general rail passes such as 

the Junior, Senior, Familia Partner, Familia 

Youth, uo Partner, etc. All trainees 

of Swiss Post and its subsidiaries receive a 

general rail pass. This is a greater incen-

tive than a salary increase and also eases 

the financial burden on parents. Anyone 

who drives to work needs a parking 

space. These are no longer provided automatically 

but usually have to be rented. 

Swiss Post will meet or even exceed 

the Kyoto objectives 

Swiss Post is committed to achieving 

Switzerland’s objectives in accordance 

with the Kyoto Protocol (reducing greenhouse 

gases to 8 percent below the 1990 

level by 2012) and the objectives of 

Swiss Energy (lowering CO2 emissions to 

10 percent below the 1990 level by 2010). 

By setting these targets, we acknowledge 

the need for action to combat global 

warming and the greenhouse effect. 

( 12) 

By systematically implementing our environmental 

strategy, we have already 

largely succeeded in achieving our energy 

and climate-related objectives for 2010. 

( 11) On balance we have reduced our 

environmental impact by 8.6 percent 

since 2000. Swiss Post will most likely 

reach or even exceed its targets and obligations 

under the Kyoto Protocol relating 

to the reference year 1990. At the latest 

by the time the CO2 tax is introduced, our 

forward-looking strategy to improve energy 

efficiency will become a competitive 

cost advantage. 

20 See the “Sponsorship” section in the “Responsible” chapter, page 56 

21 See also the “Prudent” chapter, page 42. 

22 See also the “Prudent” chapter, page 42. 

23 To read more about the cooperation between Swiss Post and Mobility 

CarSharing, see the “Service-oriented – logistics services” chapter, 

page 22. 





19) Swiss Post’s environmental strategy 

20) Swiss Post’s environmental management system 


24) Relieving the emotional impact of dismissals 



Report | Considerate 

Key figures – Considerate 2006 2005 

Individual consultations by job centre Number 1362 1337 

Job centre seminars Participants 1497 1762 

Notice given by employer for economic reasons Number 68 161 

Occupational accidents at Swiss Post Number per 100 FTEs 6.1 6.5 

Non-occupational accidents at Swiss Post Number per 100 FTEs 16.3 16.2 

Costs generated by accidents at Swiss Post CHF million 79.0 84.8 

ays lost due to illness and accidents 

1 

ays lost per employee 11.5 12.0 

ays lost due to illness and accidents ays per year 394105 432160 

2005 2004 

Millions of environmental 

impact points2 299203 306125 

t CO2 equivalent3 281249 280472 

Climate-related burden of goods transports t CO2 equivalent3 53634 55451 

Of which: rail t CO2 equivalent3 6034 7851 

Of which: road t CO2 equivalent3 47600 47600 

t CO2 equivalent3 122165 119700 

t CO2 equivalent3 Total environmental impact 

Total climate-related burden 

Climate-related burden of passenger transports 

Climate-related burden of journeys to work 

46809 49259 

1 In accordance with the CEC. the employment relationship continues for two years. For employment contracts in accordance with the Swiss Code of 

Obligations. the employment relationship is discontinued after six months. The figures are therefore not comparable with other companies. 

2 Valuation method for environmental impact on the basis of ecological shortage. This means that a number of environmental burdens can be compared 

and added in a single key figure. The environmental impact points are based on Swiss environmental policy and were published by the Federal Office of 

the Environment. 

3 In addition to carbon dioxide (CO2). other gases such as methane or laughing gas contribute to climate change. although their impact on the climate is 

sometimes considerably higher per kg than that of CO2. The quantities of the gases weighted with this relative climate-related impact is indicated in CO2 

equivalents. 


55

56 Annual Geschäftsbericht Report | Responsible 2006 

Responsible 

“ Swiss Post is a major employer 

in our region.” 

Bixio Caprara 

Member of local government, Bellinzona 

As a role model 

we act responsibly. 

Even when implementing necessary 

changes, Swiss Post is always aware 

of its social responsibility. In ac- 

cordance with the objectives of the 

Federal Council we take account of 

regional concerns in terms of investments 

and jobs. In times of change in 

particular, we bear the responsibility 

for the quality of work and quality of 

life of our employees. We can only 

expect them to produce above-average 

performances if they are able to 

achieve the right work-life balance. 

Finally, socially responsible action 

means that we can engage in charitable 

activities without deriving any 

direct benefit from them. By contrast, 

we expect a clear benefit from 

our sponsorship of sports and cultural 

events. 

Represented in the regions 

Swiss Post is well represented in all regions 

of Switzerland. ( 6) We are a 

strong employer in marginal regions. Of 

the 9,000 or so jobs in certain regions, 

around one-fifth would not be required 

for operating purposes. ( 25) However, 

they reflect our desire to contribute to a 

balance between urban and rural areas 

and between the economically stronger 

and weaker regions. In recent years we 

have decentralized thousands of jobs and 

will continue this policy. Over 2,800 jobs 

have been created outside the major conurbations 

in the middle of the country 

since 1996. 60 people were hired as customer 

advisors in both Fribourg and 

Schaffhausen, 70 new jobs were created 

in Ticino at an IT centre and for the 

regional management of Post Offices & 

Sales, and 180 new positions were created 

in the Gruyères region for the Post- 

Finance Operations Center. Around 

80 jobs will be created in 2007 in Sion, 

and 80 in the Chur region for returns 

processing and video coding. PostFinance 

will also be offering 230 jobs at the 

new computer centre in Zofingen (Canton 

Aargau) as of autumn 2007.

Overall, Swiss Post employs more people 

in marginal regions than in other parts 

of Switzerland. Whereas an average 

of 1.29 percent of all employees in Switzerland 

in the industry and service sectors 

work for Swiss Post, the figure for 

marginal regions is 1.34 percent. 24 

In terms of procurement, we give preference 

to companies based in Switzerland. 

This type of procurement process was 

supported by an internal customer satisfaction 

survey: around two-thirds of the 

key in-house procurement managers were 

against unlimited use of the cost-cutting 

potential of global sourcing. The annual 

procurement volume comes to around 

2.5 billion francs. 25 

The challenge of demographics 

As the population ages, Swiss Post faces a 

new challenge. Since the end of the 

1960s the birthrate has been falling, and 

life expectancies have risen. The supply of 

labour will decrease, and the share of over 

50-year-olds will increase from the current 


Report | Responsible 

57 

“Anyone facing competition 

has to shape his organization strictly 

in accordance with business 

administration criteria.” 

Franz Jaeger 

Business expert, St Gallen


25 percent to 31 percent by 2020 for society 

as a whole. The following trend is already 

discernible: between 1999 and 

2005 the average age at Swiss Post rose 

from 39.2 to 42.3. This is expected to rise 

to 44.7 by 2009. This is why we are already 

considering which tasks will fall to 

Swiss Post as a considerate employer. 

In view of the anticipated shortage of 

labour, Swiss Post will attach great importance 

to maintaining and increasing motivation 

and willingness to perform among 

its older employees. We want to develop 

our culture of appreciation for older employees 

and their experience. We want to 

ensure that older people can continue to 

enjoy working for as long as possible. For 

instance, we are looking into new options 

for flexible, gradual retirement (e.g. gradual 

partial retirement) that may extend 

up to and beyond the regular retirement 

age. Here the goal is always to preserve 

physical and mental performance. 

Quality of work and quality of life 

Reconciling the demands of work and 

private life is a central HR issue at Swiss 

Post. To ensure that staff are motivated 

and lead balanced lives, modern working 

hours models such as flexitime, annual 

working time and job sharing play an 

important role. uring the year under 

review, over 40 percent of all staff 

worked part-time, i.e. less than 90 percent 

of a full working week. Even if this 

form of work is still disproportionately 

widespread amongst women and in less 

skilled work, a new trend has been discernible 

for some time. More and more 

men and more highly qualified people are 

interested in part-time work. The “Parttime 

in management” project has contributed 

to this. Since 2003, the number 

of managerial staff working part-time has 

risen from 86 to 153. 

Mastering crises together 

Since 1 February 2006, Swiss Post’s job 

centre and social workers have worked 

together throughout Switzerland as part 

of the joint “Employee support” programme. 

We support and advise employees 

in crisis situations and see one of our 

core tasks as strengthening their skills 

and responsibilities. The job centre deals 

with occupational changes and supports 

line managers and team with restructurings 

and reorganizations. 26 The social 

workers help employees and their families 

with personal concerns and needs – 

confidentially and free of charge. Support 

and advice is offered in particular in 

the event of conflicts in the family or 

with a partner, if problems arise at the 

“ I’m greatly unsettled by 

the fact that savings are 

always made in the field 

of regional transport.” 

Bruno Sutter 

PostBus driver, Heiden

workplace and in case of addiction or 

financial problems. In 2006, the 28 social 

workers of Swiss Post from all parts of 

Switzerland advised 2,559 employees 

and conducted 38 seminars or acted as 

speakers. 

Support in emergencies 

The Swiss Post employee foundation supports 

employees and retirees from the 

whole Group who are in financial difficulties 

or whose financial resources are modest. 

The foundation provides non-repayable 

allowances to contribute towards the 

costs of illness and accidents or to help 

with children’s education. In this way it 

helps with serious or emergency cases. It 

also promotes family holidays with 

around 100 low-cost holiday apartments 

and provides loans with a low rate of 

interest. In 2006, non-repayable advances 

amounting to 736,000 francs and low- 

interest loans totalling 830,000 francs 

were granted, providing support to 520 

employees. The employee fund finances 

its expenses from the interest earned 

on the foundation’s assets, which 

amounted to 47 million francs last year. 

In 2005 and 2006 43.8 million francs 

flowed into the foundation’s assets. The 

Executive Management had decided to 

make the net profit from the dissolution 

of the foundation promoting home ownership 

available to staff for social purposes. 

Commitments on behalf of society 

We have supported both Pro Juventute and 

Pro Patria for years. Pro Juventute works to 

fulfil the needs and implement the rights of 

children and young people in Switzerland, 

while Pro Patria uses its funds to promote 

projects that protect cultural heritage and 

for social purposes. They re-ceive the sur- 



59 

charges on the well-known stamps, four of 

which are issued by Swiss Post each year. 

Swiss Post contributes a-round 12.6 percent 

to the Pro Juventute budget and around 

half to that of Pro Patria. 

As part of the “2 x Christmas” campaign, 

around 83.000 parcels (compared to 

75.000 in 2005) were handed in last year. 

Half of the surplus Christmas presents 

were distributed in Switzerland and half 

in Modavia by the Red Cross. 

The “Santa Claus” campaign brings 

pleasure at Christmas time each year. In 

2006, 17.863 children wrote a letter to 

Santa Claus, which we answered with a 

small gift. 

We responded to Swiss Solidarity’s calls 

for donations by waiving the inpayment 

fees. Last year, this contribution came to 

30.000 francs. Swiss Solidarity organized 

“ In order to deal with change, 

the consequences have to 

be communicated openly and 

transparently.” 

aniel Mollet 

Head of Communication, Swiss Post, Berne


national collection days for earthquakes 

on Java in May and reactivated the joint 

account for children who are victims of 

war. 

Sponsorship 

Swiss Post engages in a wide range of 

sports and cultural sponsorship activities. 

A key factor in agreeing to a sponsorship 

is not only the benefit we derive, i.e. 

the presence, but the reputation associated 

with the sponsorship. It must represent 

characteristics such as ambitious, 

versatile and trustworthy and convey our 

core values “entrepreneurial”, “credible” 

and “cooperative”. The Group’s sponsorship 

budget came to around 19 million 

francs in 2006. 

In terms of sports sponsorship, Swiss Post 

focused on running, as in 2005. 

It supported Swiss Runners, the umbrella 

organization of the 24 main and biggest 

races in Switzerland – such as the Grand 

Prix in Berne, the Murtenlauf race, the 

Lausanne Marathon and the New Year’s 

Eve race in Zurich. Moreover, Swiss Post 

also promoted most events directly. As in 

the previous year, the Swiss Post Cup was 

conducted in cooperation with the Athletics 

Association and Swiss Runners. Its 

goal is to promote Switzerland’s top runners 

and running as a popular sport. 

Swiss Post’s commitment to running also 

serves to motivate its employees. In 2006 

they benefited from over 2,000 free entrances 

to races and running seminars for 

everyone. 

PostFinance is the principal sponsor of 

the Swiss ice hockey association and the 

national leagues, and promotes young 

talent through the ongoing “Top Scorer” 

project. PostFinance was also the principal 

sponsor of the successful Swiss orienteering 

national team and on top of this 

showed its commitment to encouraging 

young people to take up running in the 

school project “sCOOL”. 

In the field of cultural sponsorship, PostFinance 

is involved in the biggest music 

festival in Switzerland and for eleven 

years it has organized a separate series of 

classical music concerts, the PostFinance 

Classics.

With its commitment to the Swiss Youth 

Symphony Orchestra, it expanded its 

work of promoting talented young musicians. 

PostFinance is committed to 

promoting young talent in the long term. 

Swiss Post is a sponsor of the Museum for 

Communication in Berne and the principal 

sponsor of the Geneva book fair, 

“Salon International du Livre et de la 

Presse”. The international Film Festival of 

Locarno – the biggest cinematic event 

in Switzerland – and the Solothurn Film 

Festival – a forum for Swiss film – have 

been supported by Swiss Post for years. 

There are 1,429 trainees at Swiss Post. 

The Vocational College of Administration 

in Berne offers a “Learning and Sports” 

apprenticeship that lasts four years instead 

of three and which qualifies the 

participants to become commercial employees. 

The extended study period 

means that around 25 percent of the 

working time is devoted to sports activities 

such as training, competitions, tournaments, 

training camps and regeneration. 

Four Swiss Post trainees are currently 

participating in a “Learning and Sports” 

apprenticeship. This commitment demonstrates 

that Swiss Post is also an attractive 

employer for professional athletes and 

that it is possible to combine a job with 

training and sports. 

The Swiss Post Switzerland Sports and 

Culture Association is an association of 

110 sports and culture associations of 

Swiss Post and Swisscom with over 8.000 

members, most of whom work at Swiss 

Post and Swisscom. It organizes 25 

national and various regional events in 

the fields of sports and culture each year. 

Swiss Post as a socially responsible employer 

thus offers its employees a platform 

for a variety of sports for private 

activities. 

Key figures – Responsible 2006 2005 

Jobs in Switzerland Swiss Post employees 

per 1000 employees 12.9 13.6 

Jobs in marginal areas Swiss Post employees 

per 1000 employees 13.4 14.0 

Employees aged 50–59 % 25.0 24.0 

Employees aged 60 and over % 4.1 3.8 

Average age of staff Years 42.7 42.3 

Total full-time employees1 % 56.0 56.9 

Full-time employees, men1 % 85.4 85.6 

Full-time employees, women1 % 26.5 27.3 

Part-time employees, management2 % 8.5 7.9 

Part-time employees, management, men2 % 5.3 4.9 

Part-time employees, management, women2 % 30.5 29.9 

Sports sponsorship CHF million 9.7 9.6 

Cultural sponsorship CHF million 3.6 5.1 

Social commitments/donations/gifts CHF million 3.4 3.1 

onations to political parties CHF million 0 0 

1 Full-time: degree of employment 90% or higher 

2 Part-time: degree of employment under 90%, management: employees with performance, specialist and higher technical functions 




61 

24 “Marginal areas” were determined in accordance with the Federal Law 

on Investment Aid for Mountain Regions. 

25 For more on our interaction with suppliers, see the “Exemplary” 

chapter, page 62. 

26 See the “Considerate” chapter, page 50. 




Swiss Post 2006-2009 

25) Swiss Post – jobs throughout the country 


62 Annual Geschäftsbericht Report | Exemplary 2006 

Exemplary 

The leader should 

set an example. 

Being a role model calls for a firm and 

unshakeable determination to give 

everyone their due. Being a role model 

means being ready to fulfil one’s 

obligations, to add to the general 

well-being and in doing so to go beyond 

the legally required minimum. 

In everything we do we must strive 

to achieve a reasonable balance of 

interests. As a Confederation-owned 

company and the market leader, we 

are aware that we have to impose 

stricter standards on ourselves, and 

that in this respect we are expected 

to rise above the average. 

A socially responsible employer 

Swiss Post is required by law to negotiate 

a collective employment contract with 

the trade unions. ( 26) Since this agreement 

was introduced, all involved parties 

have undergone an intensive learning 

process. The former rigid Public Officials 

Act has given way to a dialogue-based 

culture of agreement. For the Communication 

and transfair trade unions, the 

focus is primarily on preserving and expanding 

what has been achieved to date. 

However, Swiss Post needs greater flexibility 

in order to survive in the face of 

competition. The disputes – for instance 

in autumn 2006 concerning Ymago, the 

reorganization of the post office network 

– have become tougher. 

Nevertheless, Swiss Post and the trade 

unions have succeeded in finding common 

solutions even in difficult situations 

“ Anyone who does not work 

at least 80 % of a working week 

is unlikely to be considered for 

a management position.” 

Annelies Haslimann 

HR consultant, Biglen 

and in avoiding serious conflicts between 

the social partners. 

Mutual trust is key to a smoothly functioning 

social partnership. It is based on 

transparent communication, reliable 

agreements and mutual respect. The Executive 

Management of Swiss Post stands 

firmly behind these principles. 

Swiss Post has around 55,000 employees 

and is thus the second-biggest employer 

in Switzerland. The employment conditions 

are currently based on two different 

legal bases: the Public Officials Act (BPG) 

( 10) and the Swiss Code of Obligations 

(CO). The Swiss Post collective employment 

contract came into force on 1 January 

2002 on the basis of the BPG. Most of 

Swiss Post’s staff (around 43,000 employees) 

is subject to the CEC. Their salaries 

are based on their function, experience 

and performance. The Swiss Post 

CEC also guarantees above-average social 

allowances, rewards for outstanding performance 

and benefits such as the annual 

staff vouchers worth 400 francs or a free 

half-fare rail pass. 

The other employees of Swiss Post have 

different employment contracts that are 

based on the Code of Obligations. These 

include the CEC auxiliary staff ( 27), 

individual company contracts and staff 

regulations. There has also been a CEC 

for outsourced subsidiaries (subsidiaries’ 

CEC ) ( 14) since 2005. It is based on the 

Swiss Post CEC and governs the employment 

conditions for units outsourced 

from the parent company, such as Post- 

Bus AG or SecurePost AG. Additional 

agreements to the subsidiaries’ CEC enable 

the units to adapt flexibly to the 

market and competition conditions in a 

specific sector. 

Upper and senior management-level employees 

are also subject to the Code of 

Obligations. Their salaries comprise a ba-

sic component and a variable performance 

component, geared to the target 

attainment of the company as a whole, 

the unit and the fulfilment of individual 

objectives agreed with their line manager. 

In this way, management will be motivated 

to think and act in terms of generating 

genuine value for Swiss Post in 

the long term. 27 

Above-average employment 

conditions 

Socially responsible action depends primarily 

on the economic success of a 

company. In terms of salary, holidays and 

social allowances, the current Swiss Post 

CEC offers above-average employment 

conditions. In the longer term this will 

jeopardize our competitiveness and thus 

also jobs. In a competitive environment, 

these employment conditions will 

increasingly become a disadvantage for 

Swiss Post. One reason for this is the 

obligation of equal treatment arising 

from the Public Officials Act (BPG). ( 10) 

The Act states that Swiss Post must pay 

the same salary for the same work everywhere 

in Switzerland. This puts it at a 

considerable disadvantage in relation to 

its competitors, which can win orders 

and customers away from Swiss Post 

with lower staff costs and more flexible 

offerings. In this way, a competitive 

advantage for peripheral regions – inex- 

“ We promote part-time work among 

management-level staff.” 

Oliver Gross 

Equal opportunity officer Swiss Post, Berne 

Annual Verantwortungsbewusst Report | Exemplary 63 

pensive labour costs – ends up becoming 

a disadvantage. 

The example of salaries illustrates our 

generally above-average employment 

conditions. Swiss Post’s four fields of activity 

are Logistics, Commerce, Financial 

Services and Passenger Transport. Our 

salaries are higher than the average almost 

across the board. Only some of the 

salaries in the Financial Services unit in 

the large centres are below average. 

However, it is precisely in peripheral regions 

that Swiss Post pays above-average 

salaries. To ensure that we are successful 

in the long term and can safeguard jobs, 

Swiss Post needs legislation on labour law 

that provides a level playing field. We a 

re therefore in favour of doing away with 

the BPG. However, regardless of the labour-law 

basis, we want to continue acting 

in a socially responsible manner, 

and we want to be one of the most best 

employers in all sectors anywhere in 

Switzerland. 

A strong pension fund 

Swiss Post is committed to a social and 

up-to-date retirement policy for its employees, 

also thanks to its currently sound 

financial position. In 2006, Swiss Post and 

its social partners agreed to switch from 

the defined benefit to the defined contribution 

plan on 1 January 2008. Pensions


“ Women account for 49.9 % 

of Swiss Post employees.” 

Manuela Gassner 

Post office manager, Bad Ragaz 

will thus be based on the amount of the 

individual contributions and the interest 

earned and no longer solely on the last 

insured salary. On average, the new benefits 

will correspond to those currently in 

place when the changeover is made. In 

addition, insureds born in or before 1953 

will receive a nominal guarantee for 

salary components insured under the basic 

scheme, comprising at least the same 

benefits as under the defined benefit 

scheme. On average, the insureds will not 

pay higher contributions under the defined 

contribution plan. Moreover, the 

social partners agreed on the modalities 

for financing the Swiss Post pension fund. 

As the Confederation had not fully financed 

the pension fund when it was set 

up in 2002, Swiss Post is taking on these 

liabilities in agreement with the Federal 

Council: we will allocate over 900 million 

francs to financing the pension fund and 

to the changeover in the pension scheme. 

Some of the profit will be used to finance 

the pension scheme. 

Equal opportunities 

The same salaries for men and women 

are a matter of course at Swiss Post. We 

implement equality of opportunities 

across the board. ( 15) Regardless of 

whether the candidates are men or women, 

Swiss citizens or foreigners, from Ti- 

cino, western Switzerland or Germanspeaking 

Switzerland, mother or fathers 

with small children or single people, 

young or old – at Swiss Post everyone 

should have the same opportunity to 

work and enjoy professional and personal 

development. This principle benefits each 

and every one of us as well as Swiss Post 

as a company. Equal opportunities in 

practice are a sign of a strong corporate 

culture and also pay off in economic 

terms. Mixed teams in which both genders, 

different languages, cultures and 

generations are represented benefit from 

the greater knowledge and diversity of 

experience this entails. They are thus better 

placed to understand our customers 

and respond to their needs. By adhering 

to the principle of equal opportunities, 

we want to create added value for our 

customers and the company, develop our 

employees, foster opportunities for combining 

a job with a family and free time 

and combat all types of abuse (whether 

sexual harassment or bullying). Equality of 

opportunities is a key concern of Executive 

Management and one of the objectives 

agreed between the Group and the 

units. In 2006 we presented all line managers 

with a brochure that set out the 

advantages of mixed teams. 

Swiss Post also supports part-time work 

for management-level staff. Thanks to a 

proprietary project, the proportion of 

managers who work part-time has risen 

from 7.9 to 8.5 percent since 2003. 

Legal compliance 

Since 2004, Swiss Post has had internal 

regulations that prescribe and prohibit 

certain rules of behaviour in the fields of 

antitrust law, data protection, purchasing/ 

procurement and money laundering. 

These are sensitive areas which play an 

important role for a former monopoly 

company and in which it is essential for 

employee conduct to comply with the 

law. In its directives, employees are instructed 

to turn to designated persons if 

certain situations apply (duty of consultation). 

Since these regulations were issued, 

the employees in question have been 

trained and instructed in the relevant 

topics. We rely primarily on prevention 

and are confident that our employees will

“ I’m often the only woman at 

management meetings.” 

Martina Zehnder 

Head of Internal Auditing, Swiss Post, Berne 

follow the in-house directives, act in compliance 

with the law and, in case of 

doubt, turn to the relevant internal staff 

units. As part of the Corporate Governance 

project launched during the year 

under review, additional processes were 

defined that ensure even more specifically 

that employees do not violate the law. 

In particular, monitoring and controlling 

tools will be expanded in critical areas. 

In 2006, the postal regulatory authority 

checked the licensed postal companies’ 

compliance with industry-standard employment 

conditions. As part of this review, 

supervisory proceedings were initiated 

against TNT Swiss Post AG, in which 

Swiss Post holds a 50 percent stake, because 

of excessively high weekly working 

hours for drivers. TNT Swiss Post AG undertook 

to gradually reduce the weekly 


Report | Exemplary 

65 

working hours to an industry-standard 

level, enabling the proceedings to be concluded 

without sanctions being imposed. 

Cooperative interaction with 

suppliers 

The Swiss Federal Law on Public Procurement 

(BoeB) and the Swiss Federal Ordinance 

on Public Procurement (VoeB) 

( 28, 29) form the basis for Swiss Post’s 

purchasing policy. They oblige us to comply 

with the specified tender procedure 

( 30) and, wherever possible, to purchase 

on a competitive basis and to treat all 

bidders equally. 

We consider our suppliers as partners in 

a tough but fair competitive field. We 

make active use of the opportunities offered 

by the domestic and international 

procurement markets and treat Swiss and 

international providers equally. As we 

consider suppliers to be our partners in 

solving problems, we prefer to work with 

innovative, reliable and efficient companies. 

Corporate Purchasing aims to establish 

long-term relationships with suppliers 

for strategic purchasing activities. To 

achieve the best possible purchasing conditions, 

we also strive to form cooperative 

relationships and partnerships. Corporate 

Purchasing analyses and rates our suppliers 

on a regular basis. As a key goal of 

these processes is to improve quality and 

performance, the results are discussed 

with the individual suppliers. With strategically 

important suppliers we aim for 

complete integration into our procurement 

chain. In the selection process we 

ensure that all statutory requirements are 

met correctly and in full. The Purchasing 

unit acts in the interest of the Group as a 

whole, while taking our economic, social 

and ecological responsibilities into account. 

( 31) Each supplier has been required 

to sign and comply with our Code 

of Ethics ( 13) since 2006. With international 

suppliers this is tested and monitored 

continuously in cooperation with 

external auditors. 

Up-to-date management and controls 

As an independent Federal institution, 

Swiss Post has a mandate from the legislators 

for the countrywide universal provision 

of postal and payment services. This


mandate involves widely differing needs 

of customers, employees and the public, 

which are also reflected in their expectations 

with regard to transparency. 

Although Swiss Post is not a public company 

listed on the stock exchange, its 

reporting follows the Swiss Exchange’s 

corporate governance guidelines. 

However, we take postal-specific differences 

into account that arise as a result of 

our legal status and our being owned 

by the Confederation. 28 

The Corporate Governance project aims 

to optimize existing structures and provide 

clarity where this is perceived to be 

necessary. This applies in particular to the 

topics of responsibility, instructions and 

monitoring. With this project we aim to 

continue improving our good, and exemplary, 

management style and consolidate 

trust in the management and supervision 

of the company. 

Transparent statement of the costs of 

the universal service 

We are obliged to disclose the costs of 

the universal service to the owner and 

regulator. The previous calculation method 

was criticized by the regulatory authority. 

Swiss Post will endeavour to meet 

the more stringent demands in terms of 

transparency and cost accuracy: In future, 

we will disclose the difference in costs 

between the current network (acceptance, 

transport, delivery) and an economically 

essential network (without a universal 

service obligation) as the burden 

associated with providing the universal 

service. In this way, Swiss Post will be 

meeting the regulatory requirements and 

helping to makethe discussion of the cost 

of providing a basic service – a politically 

important issue – more objective. However, 

it should be remembered that 

disclosing the cost of the universal service 

does not enable any predictions to be 

made about how the costs of the basic 

service will develop after further deregulation. 

This would call for scenario analyses, 

similar to those performed in the EU. 

Fair distribution of added value 

The breakdown of added value shows 

how the values generated are distributed. 

Added value measures the amount of our 

economic input as the difference between 

turnover and the upstream services 

(goods and services) that have to be purchased 

for the service to be provided. 

In 2006, added value came to 4,735 million 

francs (2005: 4,716 million francs). 

Efficiency gains resulting from optimized 

processes contributed to this result. 

The lion’s share of the added value 

generated (78.4 percent) is allocated to 

the employees. In addition, in 2006 

we spent almost 7.4 percent of added

value (350 million francs) from 2005 

profit on employee-related benefits to 

boost the pension fund. In 2006, 

employees thus accounted for almost 

85 percent of the added value – an unprecedented 

figure. The public sector 

contributes to added value with tax 

revenues. In terms of direct taxes, Swiss 

Post is taxed only on the profit from 

competitive services, in accordance with 

Art. 13 of the Postal Organization Act. 

All subsidiaries are taxed as part of the 

Group. All postal services that are 

not part of reserved services are subject 

to VAT. 

In accordance with the Postal Organization 

Act and based on the Federal Council’s 

strategic objectives, Swiss Post has 

agreed with the owner that it will make 

profit payments to the Confederation 

after increasing its equity by an adequate 

amount and after fully financing the 

pension fund. In the medium term, the 

Confederation and taxpayers too will 

be adequately compensated for equity 

(2006: 1.605 billion francs). 

27 See also the “Corporate Governance” chapter, page 73. 

28 See also the “Corporate Governance” chapter, page 73. 



10) Public Officials Act 

13) Social and ethics code 

14) Subsidiaries CEC 

15) Principles of leadership and cooperation 

26) Swiss Post CEC 

27) CEC auxiliary staff 

28) Federal Law on Public Procurement 

29) Ordinance on Public Procurement 

30) Tender procedure 

31) Procurement policy 



Report | Exemplary 

Key figures – Exemplary 

Employment in accordance with 

2006 2005 

Swiss Post CEC FTEs as a % 80.6 86.6 

Men % 50.1 50.8 

Women 

Proportion of women in senior management 

% 49.9 49.2 

functions1 Average remuneration paid to Members of 

% 9.1 9.3 

Executive Management2 CHF per year 444187 426498 

Average employee salary3 CHF per year 75127 73593 

Minimum salary Swiss Post CEC4 CHF per year 41006 40400 

Salary bandwidth5 Factor 5,9 5.8 

Cover of Swiss Post pension fund6 % 103.9 101.1 

Added value generated7 CHF million 4735 4716 

Of which paid to: employees CHF million 3711 3704 

Of which paid to: creditors CHF million 11 9 

Of which paid to: public sector CHF million 2 4 

Of which paid to: owner CHF million 0 0 

Of which paid to: company 

Of which for: transfer to Swiss Post 


pension fund CHF million 350 350 

Of which for: building up equity CHF million 487 461 

Of which for: depreciation CHF million 257 252 

Of which: other CHF million –83 –64 

1 Excl. Executive Management 

2 Excl. CEO 

3 Swiss Post Group in Switzerland, excl. Members of Exec. Mgmt. 

4 18 years, excl. trainees 

5 Average remuneration paid to Members of Executive Management vs. average employee salary 

6 As per BVG 

7 Added value = operating result + staff costs + depreciation – income from sale of property, plant and equipment, intangible assets and investments. 


67

68 Annual Geschäftsbericht Report | Board 2006 of irectors 

Board of Directors 

Fritz Mühlemann Anton Menth 

Dominique Freymond Rudolf W. Hug 

Fritz Mühlemann 

(date of birth 30 ecember 1939, Switzerland), 

member since 1998, r.rer.pol. 

Professional background: Federal epartment of 

Economic Affairs EV (General Secretariat), 

Commission for Economic Issues and Studies 

Commission for Pricing, Cost and Structural 

Questions (Secretary), Central Office for Regional 

Economic evelopment (head of department), 

Federal Office for Industry, Trade and Labour BIGA 

(deputy manager), Federal epartment of 

Transport and Energy EVE (General Secretary), 

BKW FMB Energie AG (CEO) 

irectorships and other mandates: BKW FMB 

Beteiligungen AG, Jungfraubahn Holding AG, 

Schweizerische Mobiliar Genossenschaft 

Dominique Freymond 

(date of birth 1 May 1954, Switzerland) 

member since 2002, lic.ès sciences naturelles. 

Professional background: IBM Switzerland and 

IBM Europe (positions in sales, marketing and 

management), Unisys Switzerland and Austria 

(Head of Technical Services), Canton Vaud 

(Chancellor), Unisys Central Europe (Vice- 

President and Country Manager Switzerland), 

TKS-Teknosoft Group SA (General Manager), 

management & advisory services AG (partner). 

irectorships: Allianz Suisse Société d’Assurances, 

Allianz Suisse Société d’Assurances sur la Vie, 

Beryl Management, ilem, Information Process 

Group, mas, IT Lease and Sterci 

Rolf Ritschard 

Anton Menth 

(date of birth 27 July 1939, Switzerland) 

Member since 2002, r.sc.nat., ipl.Phys. Federal 

Institute of Technology Zurich. 

Professional background: Bell Telephone 

Laboratories USA (scientific research assistant), 

Brown Boveri AG (research centre, management 

positions in the “New Business Activities” and 

“Industrial Plant” divisions), Werkzeugmaschinenfabrik 

Oerlikon (among other positions Head 

of Military Technology subsidiary), Federal 

Institute of Technology, Zurich (Professor of 

Physics and irector of the Paul Scherrer Institute, 

Würenlingen), Oerlikon Contraves AG (CEO), 

Tornos S.A. Moutier (CEO, elegate to the 

Board). 

irectorships: Bank CIAL (Switzerland), Myonic SA 

Rolf Ritschard † 

(1944–2007, Switzerland) Member as of 2006, 

Lic.rer.pol., business administration specialist. 

Professional background: epartment of Business 

Administration at the University of Berne (assistant), 

Canton Solothurn (Economic evelopment 

and Head of the Energy Office of the Canton of 

Solothurn) 1988-2005 Member of the 

Government of the Canton of Solothurn 

(Chairman of the epartment of Internal Affairs 

and the Police and Health epartments) 

irectorships and other mandates: SWISSLOS 

(Chairman of the Board of irectors since 2000), 

soH Solothurner Spitäler AG (Chairman of the 

Board of irectors since 2006), ISS Interkantonale 

Spitex Stiftung Sarnen (Chairman of the Board of 

irectors since 2006). 

Rolf Ritschard died on 9 January 2007. 

Lucrezia Meier-Schatz 

Lucrezia Meier-Schatz 

(date of birth 4 January 1952, Switzerland), 

member since 1999, r.ès science politique. 

Professional background: CVP Switzerland (head 

of Political Studies department), University of 

California, Berkeley (visiting scholar), Swiss 

National Science Foundation (research projects), 

Pro Familia Switzerland (Managing irector), 

University of Applied Sciences St Gallen (lecturer). 

Member of the National Council 

Other mandates: Management Committee at 

the Institute for Political Science, University 

of St Gallen (member), Management Committee 

at the Institute for Family Research, University 

of Fribourg, Children and Violence Foundation 

(President), Hunger Victims Foundation 

(Stiftungsforum Fastenopfer) (President) 

Rudolf W. Hug 

(date of birth 26 May 1944, Switzerland) 

member since 1998, r.iur., MBA INSEA . 

Professional background: Chase Manhattan Bank 

New York/ üsseldorf (credit business), Credit 

Suisse (credits USA, branch manager in Berne, 

General Manager of International business 

section), CSFB (Member Executive Board Country 

Management), independent management 

consultant 

irectorships and other mandates: Allreal Holding 

AG, eutsche Bank (Suisse) SA, Micronas 

Semiconductor Holding AG, Orell Füssli Holding 

AG, Panalpina Welttransport Holding AG

Jean-Marc Eggenberger Nicola Thibaudeau 

Wolfgang Werlé François Chopard 

Jean-Marc Eggenberger 

(date of birth 2 November 1957, Switzerland), 

member since 2003, Swiss Post business secretary/qualified 

postal employee. 

Professional background: PTT-Betriebe (working in 

business and administration), PTT customs 

officers’ associations (central secretary, financial 

administrator, editor), Communication union 

(central secretary) 

Other mandates: Swiss Post Employee Fund 

Foundation (Vice-President), sovis Foundation 

(Vice-President), Residential Construction 

Promotion for Swiss Post employees/Swisscom 

(liquidator), comPlan 

Wolfgang Werlé 

(date of birth 27 February 1948, Germany) 

member since 2002, Certified Business 

Management Specialist. 

Professional background: LSG Lufthansa Service 

GmbH ( irector Customer Service & Business 

evelopment), Gate Gourmet International 

(President and CEO), Swissair Beteiligungen AG 

(Chairman) and Member of the Swissair Executive 

Committee, SAir Relations (President and CEO) 

and Member of SAir Group Management, 

Hiestand International AG (CEO and elegate to 

the Board) 

irectorships and other mandates: First Catering 

Produktions AG, Hiestand Holding AG, 

Hiestand International AG, Prohotel Wäscherei 

AG, Grands Hotels Bad Ragaz 

Peter Thomas Sany 

Peter Thomas Sany 

(date of birth 30 August 1958, Switzerland) 

member since 2002, dipl.phil.II. 

Professional background: epartment of 

Geography at the University of Zurich (assistant), 

Winterthur Life (Project Manager), IBM 

Switzerland (Account Executive, Head of Industry, 

Trade and Scientific Computing Business Unit), 

IBM Central Europe & Russia (Vice President), IBM 

Smart Card Solutions (Worldwide General 

Manager), Novartis (Corporate CIO, Member of 

Executive Committee), Avaloq Evolution AG 

(CTO and deputy CEO), eutsche Telekom AG 

(Group CIO) 


| Board of irectors 

69 

Nicola Thibaudeau 

(date of birth 6 November 1960; Switzerland/ 

Canada) member since 2006, 

ipl.Ing.Mech. Ecole Polytechnique de Montréal. 

Professional background: IBM Canada (scientific 

research assistant); Cicorel SA (Head of Business); 

Mecanex SA (owner and CEO); freelance consultant; 

MPS Micro Precision Systems AG 

(CEO, elegate of the Board of irectors). 

irectorships and other mandates: CSS Krankenversicherung 

(Board member), CSS Personalstiftung 

(pension fund, Board member), MPS Micro 

Precision Systems AG (Board member), MPS 

Personalstiftung (pension fund, Chairman), SLS-TT 

(Paul Scherrer Institute, Würenlingen) (Board 

member), Federal Commission for Space Affairs 

(Board member). 

François Chopard (Sekretär) 

(date of birth 18 April 1942, Switzerland), 

Attorney. 

Professional background: PTT General 

Management (adjunct to legal department, personal 

assistant to the president of General 

Management at PTT, General Secretary at PTT, 

Secretary of the PTT Board), Swiss Post (Secretary)

70 Annual Geschäftsbericht Report | Executive 2006 Management 

Executive Management 

Karl Kern 

Karl Kern – Head of Post Office Network 

(date of birth 24 ecember 1946) 

postal commercial clerk. 

Professional background: PTT (Head of Post 

Offices), transfair professional association (General 

Secretary), PTT/Swiss Post (member of the Board 

of irectors), EUROFE OP (Member of Executive 

Management), Swiss Post (Head of Post Office 

Network) 

Joseph Bösch 

Josef Bösch – Head of Mail 

(date of birth 21 July 1944) 

postal commercial clerk. 

Professional background: General Management 

PTT (project head, responsible for organizational 

and distribution tasks and calculation of working 

hours in delivery service), istrict Postal 

irectorate Chur (deputy manager/manager), 

Swiss Post (Letters/Mail: eputy Head of Region 

East, Head of Logistics at PostMail, Head of 

Mail business area) 

Ulrich Gygi – Chief Executive Officer 


r. rer. pol., specialist in business administration. 

Professional background: epartment of Business 

Administration at the University of Berne (assistant), 

Federal Finance Administration (adjunct, 

Head of Financial Planning, Budget, Accounting 

section), Federal Office for Organization (Head of 

Business Administration epartment), Federal 

Finance Administration (Vice- irector, Head 

of the main department of financial planning, 

budget and accounting, financial perequation, IT, 

director), Swiss Post (CEO), Member of the Board 

of Winterthur Insurance and Winterthur Life 

(since ecember 2006) 

Ulrich Gygi 

Jean-Pierre Streich 

Jean-Pierre Streich – Head of International 

(date of birth 22 September 1946) 

lic.oec.HSG, business administration specialist. 

Professional background: Migros (Head of 

Software evelopment Migros Industry, Head of 

Finance and IT, Konservenfabrik Bischofszell AG, 

Head of IT Migros Community), Mövenpick 

(Member of Executive Board, Head of Marketing 

& Communication, Human Resources, IT and 

Environment), Swiss Post (Head of Corporate 

evelopment, IT and International Strategy, Head 

of International)

Hans-Peter Strodel – Head of Finance 

(date of birth 20 July 1943) 

r.oec. HSG, business administration specialist. 

Professional background: Benninger AG 

(organizational assistant), Heberlein (management 

assistant), Oerlikon-Bührle Group (planning 

officer, Head of rive Shafts profit centre, Head 

of Finance, Werkzeugmaschinenfabrik, 

CFO Oerlikon-Contraves), PTT Betriebe (Head of 

Finance), Swiss Post (Head of Finance) 

Hans-Peter Strodel Yves-André Jeandupeux 

Jürg Bucher 

Jürg Bucher – Head of Financial Services 

(date of birth 2 August 1947) lic.rer.pol., 

business administration specialist and economist. 

Professional background: Business and administration 

(journalist, scientific research assistant), 

PTT ( eputy Finance Manager, Head of 

Controlling, Head of Corporate evelopment), 

Swiss Post (PostFinance: eputy Manager, Head 

of Marketing, Head of Financial Services) 

Yves-André Jeandupeux – Head of Human 

Resources 

(date of birth 26 April 1958) 

lic. psychologie, University of Lausanne. 

Professional background: vocational consulting 

for Canton Jura (Vocational Consultant); Posalux, 

machine tools factory (Head of Human Resources) 

Canton Neuchâtel (Head of Human Resources); 

CCeT SA, management consulting firm (associate 

partner, responsible for competency management), 

Skyguide, Swiss Post (Head of Human 

Resources) 

Daniel Landolf 

Daniel Landolf – Head of Passenger Transport 


degree in business administration from Higher 

College of Commerce and Administration (HWV), 

business administration specialist. 

Professional background: Credit Suisse (foreign 

exchange trader), General Management 

PTT (Business Administration and Marketing 

epartment, Central Marketing/Strategies/ 

Analyses epartment), Swiss Post (management 

adjunct for automobile services, Head of Business 

evelopment at PostBus, eputy Manager 

of PostBus, Head of PostBus, Head of Passenger 

Transport) 

Annual Report | Verantwortungsbewusst 


Michel Kunz 

71 

Michel Kunz – Head of Logistics Services 

(date of birth 10 March 1959) 

dipl.El.Ing. ETH, MBA GSBA, electrical engineer. 

Professional background: ABB (development engineer), 

Ascom (Head of Procurement, Head of 

Electronic Production profit centre), Swiss Post 

(Head of Systems evelopment at PostFinance, 

Head of IT at Swiss Post, Head of PostParcels, 

Head of Logistics Services)

72 Annual Geschäftsbericht Report | Corporate 2006 Governance 

Contents 

Legal status and ownership 74 

Government control 74 

Group structure 75 

Outsourcings 75 

CEC: Collective employment contract for outsourced business units and affiliation agreements 75 

Capital 75 

Board of irectors 75 

Role and working methods of the Board of irectors 76 

Audit Committee 76 

Human Resources Committee 76 

Information and controlling tools used by the Board of irectors 76 

Risk management 76 

The financial risks 77 

Changes on the Board of irectors 77 

Executive Management 77 

Remuneration policy 77 

Remuneration of members of corporate bodies in office 77 

Changes in Executive Management 78 

Internal Auditing 78 

External audit 78 

Self-regulating organization 78

Corporate Governance 


| Verantwortungsbewusst Corporate Governance 73 

73 

Transparent 

management, 

open 

communication.


Corporate Governance 

Effective 

management 

and controls 

Although the corporate governance 

guidelines of Swiss Exchange SWX 

apply only to listed public companies, 

Swiss Post acts in line with them as 

the demands made on good corporate 

governance are also important 

for institutions governed by public 

law. 

As an independent Federal institution, 

Swiss Post has a mandate from the legislators 

for the countrywide, universal provision 

of postal and payment services. 

This mandate involves widely differing 

needs of customers, employees and the 

public, which are also reflected in their 

expectations with regard to transparency. 

Although Swiss Post is not a public company 

listed on the stock exchange, its 

reporting follows the Swiss Exchange’s 

corporate governance guidelines. However, 

we take postal-specific differences 

into account that arise as a result of our 

legal status and our being owned by the 

Confederation. In the year under review, 

Swiss Post launched a project in which it 

examined its current structure in terms of 

appropriateness and completeness. The 

aim was to close any gaps and clarify 

which regulations of the parent company 

should apply in future to the subsidiaries 

as well. A new internal controlling system 

was also implemented. 

Legal status and ownership 

Swiss Post is an autonomous institution 

under public law with its own legal identity. 

The Confederation is the sole owner. 

Both Swiss Post’s mandate and the responsibilities 

of the management bodies 

are governed by the Postal Act and the 

Postal Organization Act. As market deregulation 

in the postal sector continues, 

the Confederation has to act as a regula- 

tor as well as the owner. To ensure that 

the owner’s interests can be kept separate 

from the regulatory tasks, the regulatory 

authority acts independently and is assigned 

to the Swiss Federal epartment 

of Environment, Transport, Energy and 

Communications (UVEK) for administrative 

purposes only. 

Government control 

The Federal Council sets out strategic 

objectives for Swiss Post for four years at 

a time. These currently cover the period 

from 2006 to 2009. The Annual Report 

(including the balance sheet and notes, 

income statement, auditors’ report and 

consolidated financial statements with 

Group auditors’ report) in particular 

is submitted for approval and to help the 

Confederation with its management and 

supervisory tasks. The Federal Council 

also receives an annual report on progress

made on implementation of its strategic 

objectives, a human resources report in 

accordance with the Public Officials Act, a 

report on the Ordinance on Managerial 

Salaries and all reports submitted to the 

Board of irectors for information and 

decisions as well as an annual report submitted 

to the regulatory authority. Alongside 

the UVEK, the Federal Council has 

also tasked the Federal epartment of 

Finance (EF ) with exercising its rights as 

owner. In addition, regular report meetings 

are held between representatives of 

the UVEK, the Federal epartment of 

Finance and the top Swiss Post management 

– five such meetings took place in 

the year under review. Key topics included 

Swiss Post’s strategic targets and its 

compliance with them, the further development 

of PostFinance, the upcoming 

comprehensive reform of the Postal Act 

and issues relating to deregulation. 

Group structure 

Swiss Post is a group under a parent company, 

with the autonomous business 

areas Mail, Logistics Services, Financial 

Services and Passenger Transport, and the 

business units International, Post Office 

Network and Philately as well as the Mail- 

Source and GHP business units, which are 

grouped in the New Business segment. 

The parent company also includes Staff 

Services. Each subsidiary is answerable to 

the relevant business area or business 

unit. The organizational units are responsible 

for managing these companies, taking 

Group requirements into account. An 

overview of the subsidiaries and associated 

companies included in the Swiss Post 

scope of consolidation can be found on 

page 141 of the Financial Report. 

Outsourcings 

On 1 July 2006, the PostBus unit was 

outsourced from the parent company to 

the PostBus Switzerland AG subsidiary 

established in 2005; this limited company 

is wholly owned by Swiss Post. This gives 

it the entrepreneurial scope it needs and 

the possibility of entering into alliances. 

Major organizational restructuring was 

also implemented in the Logistics Services 

unit, while a negative decision by the 

Federal Office for Justice meant that the 

PostParcels unit was not outsourced from 

the parent company into PostLogistics 

AG. 

CEC: Collective employment contract 

for outsourced business units and 

affiliation agreements 

In future, the collective employment contract 

for outsourced business units and 

affiliation agreements will constitute the 

basis for employment conditions in the 

event of outsourcings. The collective employment 

contract for outsourced business 

units governs relations between the 

social partners and the basic employment 

conditions. The affiliation agreement covers 

the specific employment conditions 

that apply to each individual company. 

Capital 

In its opening balance sheet on 1 January 

1998, the Confederation provided Swiss 

Post with interest-free endowment capital 

of 1.3 billion francs. It is possible to raise 

capital by accumulating reserves from 

retained profits. The revised Postal Organization 

Act which came into force at 

the beginning of 2004 now allows the 

Confederation to recapitalize Swiss Post’s 

employee pension liabilities through an 

Annual Report | Corporate Governance 

75 

injection of capital. Accumulated corporate 

profits should suffice to provide the 

funds needed to restructure the Swiss 

Post pension fund and to create the 

equity required for operating purposes. 

Group equity as at 31 ecember 2006 

amounts to 1605 million francs (following 

allocation of 2006 Group profit to retained 

earnings). The statement of changes 

in equity as at 31 ecember 2006 can 

be found in the Financial Report (Page 96). 

For the year under review, Swiss Post will 

again ask the owner to forgo being paid 

a profit in order to achieve an industrystandard 

equity level and to channel 

a further 350 million francs into the 

employer’s reserve of the Swiss Post pension 

fund. 


On the cut-off date, the Swiss Post Board 

of irectors was made up of ten members 

elected by the Federal Council for a 

term of four years. The Federal Council 

also appoints the Chairman of the Board 

of irectors, and takes into account gender 

and appropriate representation of the 

regions when selecting the Board. It is 

also particularly important to ensure that 

all members of the Board are independent. 

Members do not have any business 

relationships with Swiss Post or its subsidiaries, 

and have never been involved in 

an executive capacity for Swiss Post or 

any affiliated companies in the past three 

years. Under statutory regulations, the 

Board must include an appropriate 

number of employee representatives, and 

at the moment these are Ms Lucrezia 

Meier-Schatz and Mr Jean-Marc Eggenberger.


Role and working methods of the 


As the most senior management body, 

the Board of irectors is responsible for 

implementing the strategic objectives 

set by the Federal Council. In the year 

under review, the Board of irectors met 

a total of ten times. Key topics included 

the strategies of Swiss Post and the 

owner, the company’s performance 

(transport/finance), the major projects 

“REMA” and “Ymago”, organizational 

and pension fund issues (such as the 

transition from a defined benefit to a 

defined contribution plan and funding), 

and regulation and further steps towards 

deregulation. The Chief Executive 

Officer and Head of Finance usually attend 

the meetings in an advisory capacity. 

epending on the circumstances, 

other members of Executive Management, 

internal and external specialists or 

members of the internal audit team may 

also be included. There is no reciprocal 

occupation of seats on boards between 

Swiss Post and any other commercial 

company. Apart from the choice of the 

Chairman, the Board is responsible for 

its own structure and also appoints a 

secretary, who is not a member of the 

Board. All members of the Board are 

subject to an age limit of 70 years. The 

Board of irectors has two standing 

committees, which have an advisory role 

and prepare the way for decisions (Audit 

Committee and Human Resources Committee). 

The Chairman of the Board has 

a seat on both committees by virtue of 

his office. 

Audit Committee 

The four-member Audit Committee assists 

the Board, among other things, in 

the supervision of the accounts and of 

financial reporting operations. It is responsible 

for the creation and development 

of appropriate internal supervisory 

structures and ensures compliance with 

legal provisions. It also assesses Swiss 

Post’s risk control at regular intervals. To 

enable it to carry out these duties properly, 

there is regular contact with Executive 

Management and with the internal 

and external audit functions. The committee 

checks the findings and recommendations 

of the internal and external 

audit teams and makes corresponding 

applications to the Board as appropriate. 

The Committee meets as often as business 

dictates; five meetings were held 

during the past business year. Key topics 

included the financial performance, the 

investment and risk policy of PostFinance, 

the implementation of the Money Laundering 

Act and the SRO regulation (selfregulating 

organization), implementation 

of recommendations of the internal auditors 

and corporate governance issues. 

The members are: Rudolf W. Hug (Chairman 

of the Committee), Anton Menth, 

Lucrezia Meier-Schatz, Peter Thomas 

Sany. 

Human Resources Committee 

The Human Resources Committee comprises 

four members of the Board of irectors. 

The committee has an advisory 

function in appointing and removing 

members of Executive Management as 

well as in deciding on their salaries. It also 

submits a recommendation for setting the 

negotiating mandate for the annual 

round of wage talks with the employee 

associations. The committee met five 

times in the last financial year, iscussions 

centred on the salary measures for staff 

and Executive Management, the remuneration 

concept for Executive Management, 

management development and 

management succession planning plus 

pension fund topics (switch from defined 

benefit to defined contribution plan, 

funding). The members are: Anton Menth 

(Chairman of the Committee), ominique 

Freymond, Rudolf W. Hug, Nicola Thibaudeau. 

Information and controlling tools 

used by the Board of Directors 

All duties not expressly reserved for the 

Board of irectors fall within the authority 

of Executive Management. However, 

the Board of irectors may, at any time 

as it sees fit, take the tasks of Executive 

Management on itself and carry them 

out. The duties and responsibilities of 

members of the Board of irectors and 

Executive Management are based on the 

provisions of the Postal Organization Act. 

The Board of irectors receives, among 

other things, monthly reports twelve 

times a year, and quarterly financial and 

project controlling reports, and is informed 

by the Audit Committee on 

budget compliance, strategic financial 

planning and the Federal Council’s strategy 

targets. At the beginning of each 

meeting of the Board of irectors, the 

CEO and the Head of Finance provide 

information on the current business situation. 


Swiss Post operates a comprehensive risk 

management system, applicable to all 

units of the parent company and to the 

subsidiaries. Risk management is a line 

management responsibility, The risk management 

process is integrated into the 

Group’s annual strategy process. The 

fields considered include strategy and 

environment, customers/market, service 

provision, pricing policy, projects/external 

services, reporting/controlling, security, 

own damage and liability, human resources 

management, information technology, 

finance, corporate governance, legal 

aspects and communication/image. 

In 2006, Swiss Post identified and evaluated 

12 top-level risks, which it addressed 

and for which it developed scenarios and 

drew up possible measures. These risks 

entail potential losses of over 50 million 

francs. Five concern the (political) operating 

conditions, four are market-related 

and three are endogenous risks. Eight 

other risks that do not have the status of 

a “top-level risk” were added to the observation 

list as a precaution.

Financial risks 

The financial risks faced by PostFinance, 

namely the market and credit risks, are 

managed via the standard tools and 

methods used in the sector, and Swiss 

Post is guided by the financial sector’s 

“best practice” approach, which is applied 

in a manner specific to the business. 

The Board of irectors or the Audit Committee 

determines the overriding principles 

for dealing with financial risk, approves 

the investment and risk policy of 

Swiss Post, sets upper limits and monitors 

risks. At Executive Management level, the 

risk policy is defined and the risk and income 

targets formulated. At PostFinance, 

the professional handling of financial risks 

guarantees, firstly, the safety of customer 

deposits and, secondly, the long-term, 

sustainable earning power of the Financial 

Services business area and with it the 

company as a whole. 

Changes on the Board of Directors 

In 2006, Rocco Cattaneo retired from the 

Board of irectors. In June 2006 two new 

members were elected: Nicola Thibaudeau 

and Rolf Ritschard, who died suddenly 

in January 2007. 


Executive Management consists of the 

CEO and other members appointed 

by the Board of irectors. Alongside operational 

management of the business, its 

particular task is to draw up the Group 

strategy and the finance and human 

resources plans required for strategic 

planning. It normally holds two meetings 

each month, and the minutes of each 

meeting are delivered to the Chairman of 

the Board of irectors. The members of 

Executive Management are responsible 

for the operational management of the 

organizational unit(s) assigned to them 

and represent the related areas within 

Executive Management. The CEO represents 

Executive Management to the 

Board of irectors. 

Remuneration policy 

Pursuant to the Ordinance on Managerial 

Salaries in effect since 1 February 2004, 

corporate risk, company size, industry 

salaries and the rules for remunerating 

the most senior federal managers must 

be taken into account when determining 

the remuneration due to the Executive 

Committee. The Federal Council determines 

the remuneration of members of 

the Board of irectors, who in turn determine 

the remuneration of the Executive 

Management members. 

Remuneration of members of corporate 

bodies in office 

Total remuneration, including fringe benefits, 

for the ten members of the Board of 

irectors (including the Chairman) came 

to 977,917 francs in the year under review, 

and that for the nine members of 

Executive Management (including the 

CEO) to 4,571,964 francs (basic salaries, 

fringe benefits and performance components). 

In 2006, fringe benefits totalling 

286,470 francs are included in total remuneration 

for the first time. Remuneration 

of members of Executive Management 

comprises a gross annual basic 

salary, a performance component of between 

0% and 40% of the gross annual 

basic salary, a company vehicle, a firstclass 

general rail pass, a monthly expense 

account, premium payments for a risk 

insurance policy as well as smaller benefits 

enjoyed by all Swiss Post staff. The 

performance component is based on the 

Group results, the results of the business 

area concerned, and the individual’s personal 

contribution to performance and 

is therefore variable. The performancebased 

component paid out to members 

Annual Jahresbericht Report | Corporate Governance 

77 

of Executive Management in 2007, which 

is based on the 2006 target attainment, 

amounts to 1,125,494 francs. The fee 

of the Chairman of the Board of irectors 

came to 200,000 francs in the year under 

review and the fringe benefits amounted 

to 50,000 francs. The Chief Executive 

Officer’s basic salary amounted to 

530,000 francs, the performance component 

202,000 francs (basis 2006, paid 

in 2007); other fringe benefits included 

private use of a company car, payment of 

premiums for a risk insurance policy and 

a first-class general season rail card plus an 

entertainment allowance of 30,000 francs 

(fringe benefits total 55,830 francs). 

Neither the members of the Board of 

irectors and Executive Management nor 

parties closely linked to such persons received 

any additional fees, remuneration, 

guarantees, advances, credits, loans or 

benefits in kind in 2006. Both the basic 

salary and the performance component 

are insured for members of the Executive 

Management: up to the maximum of 

180,000 francs in the Swiss Post pension 

fund (defined benefit plan); income in 

excess of this amount is covered by a 

management insurance scheme (defined 

contribution plan). Contributions to the 

pension fund are paid half each by the 

employer and the employee. Employment 

contracts are based on the provisions 

of the Swiss Code of Obligations. No 

agreements exist with members of either


Executive Management or the Board of 

irectors regarding potential severance 

payments. The notice period for members 

of Executive Management is twelve 

months. 

Changes in Executive Management 

There were no changes in top personnel 

in the year under review. Karl Kern, Head 

of the Post Office Network, retired at the 

end of 2006. Patrick Salamin succeeded 

him at the beginning of 2007; he was 

previously Head of Marketing & Sales in 

the Post Office Network unit. 

Internal Auditing 

The internal auditors submit ongoing 

reports to the Audit Committee and an 

annual report to the Board of irectors as 

a whole, with the Chairman of the Board 

of irectors receiving all audit reports. As 

a member of the Swiss Institute of Internal 

Auditing and thus indirectly a member 

of the international Institute of Internal 

Auditors, Swiss Post’s Internal Auditing 

department is obliged to abide by current 

international standards. In particular, 

these include principles relating to integrity, 

objectivity, confidentiality, technical 

expertise and quality assurance. The audit 

activities are based on the COSO model 

(Committee of Sponsoring Organizations 

of the Treadway Commission) aimed at 

ensuring the effectiveness and efficiency 

of processes, the reliability of financial 

reporting and compliance with laws and 

regulations. The internal auditors report 

to the Chairman of the Board of irectors 

and are thus independent of the management 

responsible for Swiss Post’s operations. 

External audit 

Since 1998, KPMG AG have been the 

auditors appointed by the Federal Council 

for Swiss Post, and they also act as Group 

auditors. The auditor in charge has been 

responsible for Swiss Post since 2005. 

The Audit Committee of the Board of 

irectors holds regular discussions with 

the external auditors and also checks their 

independent status. 

Self-regulating organization 

In respect of its financial services business, 

Swiss Post is, like any other financial intermediary, 

subject to the Money Laundering 

Act. Because of the scope and characteristics 

of Swiss Post’s payments business, 

the legislators made this area subject to 

supervision by a self-regulating organization 

(Swiss Post SRO). The Swiss Post SRO 

may be administratively answerable to the 

Board of irectors, but neither the Board 

nor the Executive Management can issue 

instructions to the SRO. Its activities and 

compliance with its obligations are monitored 

by the Confederation’s Money 

Laundering Control Authority, which carries 

out on-site audits once a year. Its position 

entails a certain degree of tension, 

since it is subject to the requirements of 

the Control Authority, but is also employed 

by Swiss Post while at the same 

time supervising Swiss Post in its capacity 

as a financial intermediary.

Human Resources 

Yves-André 

Jeandupeux 

Mail 

Josef Bösch 

Strategic Account 

Management 

Frank Marthaler 

Logistics Services 

Corporate 

Development 

Last name Nationality Member of 

Executive 

Management since 

r. Ulrich Gygi, Chief Executive Officer CH 2000 

Josef Bösch, Head of Mail CH 2001 

Jürg Bucher, Head of Financial Services CH 2003 

Yves-André Jeandupeux, Head of Human Resources CH 2005 

Karl Kern, Head of Post Office Network CH 1999* 

Michel Kunz, Head of Logistics CH 1999 

aniel Landolf, Head of Passenger Transport CH 2001 

Jean-Pierre Streich, Head of International CH 1999 

r. Hans-Peter Strodel, Head of Finance CH 1998 

* until 31 ecember 2006, as of 1 January 2007 Patrick Salamin 

Bord of Directors 

Chairman 

Anton Menth 

CEO 

Ulrich Gygi 

General 

Secretariat 

Internal Auditing 

Martina Zehnder 

Corporate 

Communication 

Finance 

Beat Friedli Reto Müllhaupt aniel Mollet Hans-Peter Strodel 

Financial Services 

Passenger 

Transport 

International 

Michel Kunz Jürg Bucher aniel Landolf Jean-Pierre Streich Karl Kern 

Annual Jahresbericht Report | Corporate Governance 

79 

Post Office 

Network 

* 

Philately 

Elsa Baxter

80 Annual Report | Financial Report 

Contents 

Financial commentary 82 

Owner’s expectations 82 

Swiss Post’s environment and strategy 83 

Group structure 84 

Group result 86 

The value of the company 86 

Consolidated income statement 87 

Segment results 90 

Consolidated balance sheet 92 

Investments 92 

Appropriation of profits 93 

Risk management 93 

Outlook 93 

Financial statements of Swiss Post Group 94 

Consolidated income statement 94 

Consolidated balance sheet 95 

Consolidated statement of changes in equity 96 

Consolidated cash flow statement 98 

Notes to the consolidated financial statements 99 

Group auditors' report 148 

Financial statements of Swiss Post 149 

Income statement 149 

Balance sheet 150 

Notes to the annual financial statements of Swiss Post 151 

Proposal of the Board of Directors concerning appropriation of net retained profit 152 

Auditors' report 153 

Additional information about PostFinance 154 

The amounts shown in the Financial Report are rounded. 

0 is a rounded amount indicating that the original figure was less than half of the unit used. 

A dash (–) in place of a figure indicates that the value is zero. 

This financial report appears in English, French, German and Italian. For checks and audits, the German version is authoritative.

Financial Report 

Our values 

in figures. 

Jahresbericht | Finanzbericht 

81

82 Annual Report | Financial Report | Financial commentary 

Financial commentary 

Financially, Swiss Post can look back on a gratifying year overall. The still-inadequate equity base 

aside, the financial figures look impressive. However, the operating result is due not only to a 

strong operating performance and acquisitions, but also to special factors. In 2006, Swiss Post once 

again fulfilled its owner’s expectations. 

In the reporting period, Swiss Post achieved a Group profit of 837 million francs and operating 

income of 7,895 million francs. With the capital employed, it was able to generate value added of 

532 million francs. At the end of the year, equity amounted to 1,605 million francs. All segments 

continued to make a positive contribution to Group profit. 

Owner’s expectations 

Swiss Post is an autonomous institution under public law with its own legal identity. The Confederation is the 

sole owner. Increasing liberalization in the postal sector means that, as well as being the owner, the Confederation 

also has the role of regulator. For corporate governance reasons, this role is performed independently. 

Swiss Post’s mandate is governed by the Postal Act. In Switzerland, it involves providing an adequate universal 

service consisting of postal and payment services; in Switzerland and internationally, it involves competing 

with other providers within the existing infrastructure and associated (postaltype) segments. 

Universal service 

Reserved services 

Letters up to 100 g 

(“Swiss Post only“) 

Non-reserved services 

e.g. parcels up to 20 kg, payments 

(“Swiss Post must, private operators may“) 

Competition 

Competitive services 

e.g. express mail, unaddressed items 

(“Everyone may“) 

The Federal Council sets out strategic objectives for Swiss Post for four years at a time. Currently, these cover 

the years 2006 to 2009. From a financial perspective, the Federal Council expects Swiss Post to 

– generate an adequate profit in the universal service and the competitive segment and increase the value of 

the company. Comparable Swiss and international companies serve as a benchmark. 

– finance its investments from its own cash flow; 

– use the profits it generates, firstly, to gradually build the necessary equity base and restructure the pension 

fund and, secondly, to pay an adequate dividend on the endowment capital provided by the Confederation.

Volumes/capital trend 

Swiss Post’s environment and strategy 

Annual Report | Financial Report | Financial commentary 

The economy 

The second half of 2006 saw a continuation of the strong expansion in the global economy. Although the 

sustained upturn in the USA lost some momentum, growth in Europe strengthened. The economic upturn also 

continued in Japan and most other countries in Asia, particularly China. This trend occurred against a backdrop 

of highly volatile oil prices. In Switzerland, economic growth was balanced and broadly based. The situation 

in the labour market continued to improve, increasing job security and lifting consumer confidence. In 

2006 the provisional GDP growth rate was 2.7 percent, according to seco (press release, March 2007). 

Demand for logistics and financial services depends on the economic trend and the related trend in interest 

rates. The transport and logistics industry received a boost from foreign trade and healthy consumer sentiment, 

while the communications sector continued to rank among the drivers of growth. Swiss Post benefited 

from these trends, particularly in the financial and logistics sectors. 

Customers 

Whereas the communications sector is growing, the trend towards dwindling volumes of traditional domestic 

and international letters continued undiminished due to the changing behaviour of private customers (new 

technology) and the efforts being made by business customers to optimize their mailings (primarily nonpriority 

items). 

By contrast, the total volume of parcels remained at the prioryear level. This rowth was solely attributable 

to the number of SwissExpress items. In addition, thanks to new and innovative solutions for business 

customers, Swiss Post was able to almost stabilize the decline in parcel volumes caused by competition. 

Once again, growth in the net inflow of new money at PostFinance was gratifying and aboveaverage for 

the industry. It explains the increase in the total amount of customer deposits and reflects the high level of 

acceptance among customers in a fiercely competitive market. 

The number of passengers increased slightly due to favourable trends affecting mandated services (environmental 

awareness, fuel prices). 

Buoyed by the sound economic environment (tourism, exports), international letter post increased year on 

year. 

Mail Addressed letters 

of which priority items 

of which nonpriority items 

Unaddressed items 

Newspapers 

Logistics Services Parcels 

Swissexpress 

Financial Services Inflow of new money 

Customer deposits 

items in millions 






items in thousands 

CHF m 

Avg. in CHF m 

2006 2005 Change 

Passenger Transport Passengers in millions 106 105 0.9 % 

International Letters mailed (from Switzerland) items in millions 200 192 4.2 % 

1 Prioryear figure (adjusted) 

2 762 

742 

1 984 

1 159 

1 196 

104 

4 416 

2 548 

40 604 

2 813 

751 1 

2 0221 1 2111 1 2011 105 

4 187 

2 065 

38 169 

83 

– 1.8 % 

– 1.2 % 

– 1.9 % 

– 4.3 % 

– 0.4 % 

– 0.3 % 

5.5 % 

23.4 % 

6.4 %


Technology 

Technological developments achieved over the past few years have resulted in changes in customer behaviour, 

but at the same time made it possible to improve efficiency, optimize processes (e.g. sorting) and develop 

innovative business opportunities (e.g. direct mail, scanning, archiving). Swiss Post is pursuing these developments 

carefully. For example, we are currently building three of the most modern letter centres in the world 

as part of the REMA (Reengineering Mail Processing) project. Business opportunities have been secured 

by acquiring the GHP Group and extending the MailSource Group’s successful business model to the USA. 

Politics 

In Switzerland, further liberalization in the logistics and letter markets will increase competitive pressures and 

put our market share and margins under pressure. There is a risk that the letter market will be fully liberalized 

without Swiss Post being granted the same conditions within which to operate as its competitors. The outcome 

of the imminent full revision of the postal legislation will therefore be of key importance in determining 

Swiss Post’s competitiveness. Given the considerable burden of providing the universal service and the special 

regulations governing the statutory service mandate, which are being increasingly called into question, it 

will become ever more difficult for Swiss Post to both increase the value of the company and remain a socially 

responsible employer. 

Our strategy for success 

Swiss Post is continuing its strategy of boosting its competitiveness and targeting profitable growth so as to 

safeguard its success and core business in its market environment over the long term. 

Important initiatives undertaken in order to boost our competitiveness involve improving the range of services, 

organizing distribution channels, differentiating on price, increasing productivity and participating in shaping 

the regulatory environment. 

Swiss Post continues to target profitable growth in international markets and along its value chain. 

Group structure 

Swiss Post is a group under a parent company, comprising the Mail, Logistics, Financial Services, Passenger 

Transport, International, Post Office Network, New Businesses and Other segments, each of which is responsible 

for its own performance. 

Mail Services relating to addressed letters, newspapers, unaddressed items, electronic 

services. 

Logistics Services Parcels, express and courier deliveries, transport, logistics services. 

Financial Services Services relating to payments, investments, retirement planning and financing. 

Passenger Transport Roadbased passenger transport and supplementary services. 

International Mailing and receipt of letters and parcels to and from countries abroad and related 

services in countries abroad. Mailing of newspapers/magazines. 

Post Office Network Sales channel for postal products/services and additionally for thirdparty products 

for private customers and small and mediumsized enterprises. 

New Businesses Services in promising markets such as dialogue marketing and customer management. 

Includes subsidiaries of MailSource Group and GHP Group, newly acquired 

on 1 September 2006. 

Other Swiss Post units which cannot be assigned to the segments (service and management 

units, Real Estate, Information Technology and Philately). 

The first four segments form Swiss Post’s core business. Since the previous year, MailSource Group has been 

removed from the Other segment and grouped together in the New Businesses segment with the GHP Group, 

which was acquired during the reporting period. 

While MailSource Group specializes in companyinternal mail services, scanning and archiving, the GHP 

Group has dialogue marketing and customer management as its core business. They therefore extend Swiss 

Post’s value chain in terms of both up and downstream services and will help to offset the decline in volumes 

in our core letters and parcels business, generate growth and exploit synergies for our business operations in 

Switzerland and abroad. By establishing the new segment, Swiss Post is creating additional transparency.


Expansion of the scope of consolidation 

2006 was marked by a considerable expansion of the scope of consolidation. The following companies were 

established or acquired in the period to 31 December 2006 in the following chronological order: 

February 

– In the USA, Swiss Post acquired Forrest Solutions Inc. Following the acquisition, the New Yorkbased company 

was renamed MailSource Inc. MailSource Inc. provides mailroom outsourcing and staffing services. The 

acquisition will enable MailSource Group to exploit synergies and make itself more attractive to global customers, 

thereby improving the opportunities for growth in Switzerland as well. 

– Swiss Post acquired 100 % of Klotenbased document processing/scanning specialist oneReason AG and 

subsequently integrated it into MailSource AG by way of a merger. 

March 

– On 1 March 2006, Swiss Post International AG acquired a 100 percent interest in MDS Media Data Services 

AG, Kriens. This company operates in the domestic and foreign press and publications management market. 

– Mobility Solutions Management AG was established on 31 March 2006 to provide fleet management services 

for roadbased vehicles (including car sharing). 

June 

– On 1 June 2006, a 100 percent interest was acquired in Swiss Post International (SPI) Singapore. As part 

of the transaction, two holdings were also purchased in SPI Malaysia in Kuala Lumpur (65 percent) and SPI 

Hong Kong (60 percent). 

July 

– MailSource is extending its geographic reach and in France established MailSource France SAS. On 1 July, 

this company took over the customers and employees of Euro Postal Services SARL (EPS), which, like Mail 

Source, specializes in internal mail services. As a result of this takeover, MailSource is now represented in 

seven countries. 

– On 1 July 2006, Swiss Post International (SPI) acquired Mobile Imaging GmbH in Gottlieben in the canton of 

Thurgau and at the same time merged it with SPI Management AG. By making this acquisition, SPI has extended 

its offering of online postcards. It is now offering a platform that can be easily and quickly integrated 

into companies’ and organizations’ own websites. Customers will thus be able to send online postcards 

from a number of websites, which SPI will then print and deliver to the intended recipients by post. 

September 

– On 1 September 2006, Swiss Post acquired the German GHP Group, thereby strengthening its position in 

the promising dialogue marketing and customer management markets and tapping into new markets with a 

view to stemming the longerterm decline in income from its core business. 

December 

– CarPostal BourgenBresse SAS, CarPostal Obernai SAS and CarPostal Haguenau SAS were established in 

France at the end of the year. 

The effects of expanding the scope of consolidation on the Group and its segments are shown below: 

Operating 

income 

Operating 

expenses 

Operating 

result 

CHF m 

International 12 – 11 1 

New Businesses 186 – 181 5 

Group 198 – 192 6 

85


Group result 

The value of the company 

In accordance with the Federal Council’s strategic targets, Swiss Post must increase the company’s value. This is 

measured in terms of value added (VA). The VA is an absolute figure (millions of francs) and indicates how 

much added value the company as a whole or a specific unit generates. Value added is created when, after 

being adjusted for tax, the operating result exceeds the required interest on invested capital (operating assets 

multiplied by the weighted cost of capital). In addition to net operating profit after tax, this approach also 

takes into account the risks (cost of capital) and the capital employed (net operating assets). For the Financial 

Services segment, the value is determined on the basis of equity, calculated in accordance with the regulations 

of Basel II, instead of the operating assets. 

In 2006, Swiss Post once again fulfilled the Federal Council’s expectations and generated value added of 

532 million francs. The calculation was based on a cost of equity of 10 percent for Financial Services and for 

the other business areas on an average equity and debtweighted cost of capital for the Group of 7.2 percent. 

The increase in the value of the company stagnated year on year due to the fact that the higher operating 

capital (growthdriven increase in equity at PostFinance, acquisitions) offset the positive effect of the rise in 

profits. 

Value Added CHF m 0 100 200 300 400 

500 

600 

2006 

2005 

Net Operating Profit CHF m 0 100 200 300 400 500 600 700 800 900 

2006 

2005 

Capital costs CHF m 0 

100 200 300 400 

500 

600 

2006 

2005 

Net Operating Assets CHF m 0 

1000 2000 3000 

4000 

5000 

6000 

2006 

2005 

The value added for the entire company is included as a key figure in the calculation of the variable performance 

component of management remuneration. In this way, management is motivated to think and 

act systematically in terms of generating genuine value, while taking into account capital retention and the 

risks (cost of capital). 

532 

532 

847 

818 

315 

286 

3 896 

3 538

Group profit 


(before interest, taxes) 

Operating income of the segments 

Consolidated income statement 


At 837 million francs, Group profit for 2006 was 3.2 percent or 26 million francs up on the prioryear figure 

of 811 million francs. 

CHF m 

0 200 400 600 

800 

31 December 2006 837 

CHF m 

0 200 400 600 

800 

31 December 2005 811 

Operating income came to 7,895 million francs (2005: 7,499 million francs). The increase was based on higher 

net sales from financial and logistics services totalling 7,483 million francs (2005: 7,194 million francs). The 

main contributors to the growth in operating income with third parties were the Financial Services, International, 

Other (primarily Real Estate) and New Businesses segments. The further increase in customer deposits 

had a positive impact on income from financial services. The Mail segment, on the other hand, suffered a 

fall in sales. Other operating income came to 412 million francs (2005: 305 million francs), an increase 

of 107 million francs. 20 million francs of this came from the sale of items of property, plant and equipment 

which were no longer required for operating purposes. The remainder is attributable to services provided 

by the International segment – such as customs clearance and logistics (e.g. for Procter&Gamble). The effect of 

acquisitions on operating income amounted to 197 million francs. 

Mail 

2006 

34.2 % 

Logistics Services 13.6 % 

Financial Services 20.0 % 

Passenger Transport 7.3 % 

International 13.7 % 

Post Office Network 5.1 % 

New Business 4.1 % 

Other 2.0 % 

2005 

36.9 % 

13.8 % 

20.2 % 

7.4 % 

13.2 % 

5.2 % 

1.4 % 

1.9 % 

At 7,072 million francs, operating expenses were up 378 million francs or 5.6 percent on the prioryear period. 

Half (190 million francs) is attributable to acquisitions. As a result of lower employee benefit expense, staff 

costs increased by just 7 million francs despite the acquisitions. The reason for the lower employee benefit 

expense was the amount (350 million francs) transferred to the pension from the profit for 2005. Resale 

merchandise and service expenses and expenses for financial services rose by 269 million francs year on year. 

The reasons for this are higher resale merchandise expenses and the commission business with Procter& Gamble. 

The generally higher interest rate level impacted on expenses for financial services. Other operating expenses 

rose by 97 million francs as a result of acquisitions and customs business. Depreciation and amortization 

expense changed only slightly, up 5 million francs on the previous year to 257 million francs. The 

investments for the new letter centres as part of the REMA project will also lead to higher depreciation and 

amortization expense in future. 

1000 

1000 

87 

823 

805


Operating results of the segments 

In 2006, Swiss Post achieved an operating result of 823 million francs and an operating profit margin of 

10.4 percent (2005: 805 million francs and 10.7 percent). Over two thirds of the result was generated by the 

Mail, Logistics and Financial Services segments. The New Businesses segment contributed just 1.3 percent. 

Mail 

2006 

29.0 % 

Logistics Services 10.6 % 

Financial Services 29.8 % 

Passenger Transport 3.4 % 

International 7.1 % 

Post Office Network 2.3 % 

New Business 1.3 % 

Other 16.5 % 

Reconciliation of operating result 

2005 

27.1 % 

10.8 % 

38.8 % 

3.6 % 

4.3 % 

3.4 % 

0.6 % 

11.4 % 

The reconciliation of the operating result, using the changes in income and expense, confirms the increasing 

competition in the market environment and the pressure to become more competitive. Thus, Swiss Post was 

only able to exceed the prioryear result due to lower employee benefit expense, income from real estate and 

acquisitions. 

CHF m 2005 Logistics Financial Other Total Employee Real estate Income from 2006 

income inome income expenses benefits income acquisitions 1 

1000 

900 

800 

700 

600 

500 

400 

300 

200 

100 

0 

805 

88 

823 

20 

72 

20 

7 

Factor 

259 70 

1 The reconciliation of the operating result includes effects arising from company purchases under “Income from acquisitions“ 

Under the Federal Council’s strategic objectives, Swiss Post is expected to generate an adequate profit. In 

this context, Swiss Post is compared with European postal companies. It is important to bear in mind that 

comparisons of this kind are of only limited use, as postal companies in Europe do not operate in exactly the 

same fields and markets. At the time of preparing the Financial Report, data for 2006 were available for Swiss 

Post, TPG in the Netherlands, German company DPWN and Royal Mail (UK). Sales growth at the aforementioned 

postal companies varied considerably, mainly as a result of acquisition activity. In 2006, Swiss Post once 

again achieved aboveaverage profitability and by far exceeded the prioryear growth rate.

Trend among European postal organizations 

Profitability (%) 

13 

12 

11 

10 

9 

8 

7 

6 

5 

4 

3 

2 

1 

0 

Sales growth 


– 2 – 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 

Posten Group (SE) 

2005 

2006 

SwissPost 

2005 

Royal Mail (UK) 

2005 

La Poste (FR) 

2004 

2005 

2006 

2006 

TPG (NL) 

2005 

2005 

DPWN (DE) 

2006 

2006 (35.8) 

The financial result – the balance of financial income and expenses – remained on a par with the previous 

year at three million francs. Income from associates almost doubled year on year, increasing to 13 million 

francs. This growth was generated primarily in the International segment. Interest income and expenses for 

PostFinance are not included in net financial income and expense but are stated under “Operating income“ 

and “Operating expenses“ respectively. 

The taxable result from the parent’s competitive service amounted to 33 million francs in 2006. Despite 

the positive result, no taxes will be paid owing to the losses at the parent company for 2006 carried over from 

previous years. The negligible tax expense of Swiss Post Group results from competitive services outside the 

parent company. 

89


Monetary values in CHF m 

Margin in percent 

Headcount in FTEs 

Segment results 

All segments contributed in varying degrees to the positive result. The results of the Mail and Post Office 

Network business areas are shown after compensation for uncovered costs in the post office network 

(infrastructure contributions) as a result of reserved services in the Mail area (2006: 412 million francs; 

2005: 442 million francs). The result for the post office network represents the profit from the sale of other 

branded items. 

Operating income Operating result1 Operating result 

margin 

No. of employees2 2006 2005 2006 2005 2006 2005 2006 2005 

Mail 3 083 3 178 239 218 7.8 6.9 15 183 15 364 

Logistics 1 386 1 368 87 87 6.3 6.4 5 118 5 540 

Financial Services 1 587 1 529 245 312 15.4 20.4 2 526 2 390 

Passenger Transport 579 559 28 29 4.8 5.2 1 502 1 392 

International 1 079 992 58 35 5.4 3.5 987 898 

Post Office Network 1 781 1 875 19 27 1.1 1.4 11 502 12 046 

New Business 329 114 11 5 3.3 4.4 3 000 1 062 

Other 882 858 136 92 15.4 10.7 2 360 2 381 

Consolidation – 2 811 – 2 974 

Group 7 895 7 499 823 805 10.4 10.7 42 178 41 073 

1 Operating result before nonoperating financial result and taxes 

2 Average headcount in terms of fulltime equivalents excl. trainees 

Mail 

In 2006, Mail generated operating income of 3,083 million francs (previous year: 3,178 million francs) owing 

to a decline in volume. It increased its operating result by around 10 percent year on year to 239 million francs. 

This was thanks to a decline from 442 million francs in 2005 to 412 million francs in compensation for uncovered 

costs in the post office network (infrastructure contribution) and lower employee benefits. 

Logistics 

In 2006, logistics services generated operating income of 1,386 million francs (2005: 1,368 million francs) and 

an operating result of 87 million francs. Thanks to the positive economic trend, sales increased slightly year 

on year due to the further expansion of customer and industry solutions, while the result remained at the prioryear 

level. 

Financial Services 

Income from financial services increased by 58 million francs year on year to 1,587 million francs. The operating 

result was down on the previous year at 245 million francs. The difference compared with the prioryear 

result (312 million francs) is explained by a reversal of impairment, which had a positive effect for the first 

time in 2005. Furthermore, additional costs in the field of payment settlement (compensation in the post office 

network) in 2006 and rising interest rates for customers against a backdrop of low investment returns 

impacted on the 2006 results as a result of the current interest rate situation.



At the end of 2006, PostBus posted operating income of 579 million francs (2005: 559 million francs) and 

an operating result of 28 million francs (2005: 29 million francs). The yearonyear increase was due mainly to 

business in France, higher transport revenues (travel cards, single tickets and special services), increased 

compensation under the Railways Act (new/additional services) and additional income from management and 

engineering services (e.g. timetable scheduling, ticket inspections). 

International 

Driven by the good economic trend, the operating income of International was above the billion mark for 

the first time. Sales were lifted by 9 percent to 1,079 million francs yearonyear. Thanks to cost savings and 

favourable exchange rates, the operating result rose from 35 million francs in 2005 to 58 million francs. 

Post Office Network 

In 2006, the Post Office Network segment generated operating income of 1,781 million francs and an operating 

result of 19 million francs. The result reported for the post office network corresponds to the operating 

result of the “other brandname items“ product group. The infrastructure contribution for 2006 amounted 

to 412 million francs (2005: 442 million francs). The decline is attributable to lower employee benefit expense 

as well as to optimization measures such as the urban network, organization of post offices into types and 

Ymago. 

New Businesses 

The two autonomous groups GHP and MailSource form Swiss Post’s New Businesses segment. GHP specializes 

in dialogue marketing and customer management, while MailSource specializes in companyinternal mail 

services, scanning and archiving. They thus expand the value chain in terms of both up and downstream 

services. Operating income in the New Businesses segment totalled 329 million francs. Overall, the segment 

generated an operating profit of 11 million francs. 

Other 

The “Other“ results include the service and management units (especially Real Estate, Information Technology 

and Philately). In 2006, operating income came to 882 million francs. The operating result went up from 

92 million francs in 2005 to 136 million francs, thanks mainly to Real Estate. 

91


Property, plant and 

equipment 

Equity 


Total assets 

Consolidated balance sheet 

The consolidated balance sheet of Swiss Post is very much shaped by customer deposits in the Financial 

Services business area. Due to a further increase in customer deposits at PostFinance and the acquisition of the 

GHP Group, total assets rose by 5,470 million francs over the figure as at 31 December 2005 to 55,600 million 

francs. As at 31 December 2006, customer deposits account for around 87 % of total assets. 

The carrying amount of property, plant and equipment increased by 317 million francs year on year due, among 

other things, to the investments made as part of the REMA project. The 24 million franc increase in provisions 

(excluding employee benefits) is due mainly to the increase in provisions for litigation risks. Thanks mainly to a 

further deposit of 350 million francs into the employer’s reserve, made in accordance with the resolution concerning 

the appropriation of profit for 2005, the liability for employee benefit obligations was reduced to 

2,627 million francs as at 31 December 2006. 

Consolidated equity reached 1,605 million francs as at 31 December 2006 (2005: 922 million francs). For 

further information, see also the consolidated statement of changes in equity. Equity as at 31 December 2006 

is therefore still below the level typical in the industry. 

Investments 

CHF m 

31. 12. 2006 

31. 12. 2005 

CHF m 

31. 12. 2006 

31. 12. 2005 

CHF m 

31. 12. 2006 

31. 12. 2005 

CHF m 

31. 12. 2006 

31. 12. 2005 

0 500 1000 1500 

2000 

0 500 1000 1500 

2000 

0 13 000 26 000 39 000 

52 000 

0 13 000 26 000 39 000 

52 000 

Investments in property, plant and equipment, equity investments and intangible assets came to 540 million 

francs, an overall increase on the prioryear figure (347 million francs). In the past business year, investments in 

participations came to 35 million francs. Investment activity focused mainly on the construction of three new 

letter centres as well as on rationalization and optimization projects. 

Swiss Post financed its investments entirely from its own resources, thus meeting the Federal Council’s expectations 

(see second strategic goal). 

Other property, plant and 

equipment, intangible assets 

Operating property 

CHF m 

Participations 2005 

0 100 200 300 

400 

2006 195 | 310 | 35 

500 

600 

2 060 

1743 

1605 

922 

48 364 

43 630 

55 600 

50 130 

176 | 153 | 18

Appropriation of profits 


The Federal Council expects Swiss Post to use the profits it generates, firstly, to gradually build the necessary 

equity base and restructure the Swiss Post pension fund and, secondly, to pay an adequate dividend on the 

endowment capital provided by the Confederation. 

Given the inadequate financing of the Swiss Post pension fund (switch to a defined contribution scheme) and 

the Group’s insufficient equity base, a request has been submitted to the Federal Council to use the profit 

from Swiss Post (parent) amounting to 604 million francs as follows: 350 million francs to be deposited into 

the Swiss Post pension fund as an employer’s reserve and 254 million francs to be allocated to Swiss Post’s 

reserves. At Swiss Post, which prepares its financial statements in accordance with generally recognized commercial 

principles, equity comes to 4,075 million francs. 

However, the consolidated financial statements are authoritative in terms from a commercial point of view. 

The consolidated financial statements are drawn up on the basis of the Postal Organization Act in accordance 

with International Financial Reporting Standards (IFRS). Swiss Post Group reports equity of 1 605 million francs. 

Swiss Post is aiming for an industrystandard equity base: the target for logistics and other units is 35 % of 

total assets, while PostFinance’s target is geared to the guidelines of Basel II. On this basis, the necessary equity 

for the Group came to 2.7 billion francs in 2006 (PostFinance 1.3 billion francs, logistics and other units 

1.4 billion francs). 

In 2009, Swiss Post will be able to achieve an adequate equity base, in accordance with its strategic financial 

planning, if it retains earnings and makes a payment to the pension fund and will then be able to distribute 

some of its profit. 


Swiss Post operates a comprehensive risk management system, applicable to all units of the parent company 

and to the subsidiaries. Risk management is a line management responsibility. The risk management process is 

integrated into the Group’s annual strategy process. Both business and financial processes are taken into 

account. In 2006, Swiss Post identified and evaluated twelve highlevel risks, which it addressed and for which 

it developed scenarios and drew up possible measures. These risks each entail potential losses of over 50 million 

francs. 

The financial risks faced by PostFinance, namely market and credit risks, are managed by means of the standard 

tools and methods used in the sector, and Swiss Post is guided by the financial sector’s “best practice“ 

approach, which is applied in a manner specific to the business. 

In addition, the financial unit of Swiss Post is preparing for the upcoming amendment to the Code of Obligations 

and Auditing Act, which will require the external auditors to check the existence of an internal auditing 

system (initial audit to be performed together with the 2008 financial statements). 

Outlook 

Technological developments and changes in customer behaviour will continue to result in increased substitution 

and declining letter volumes in future. However, they also open up new business opportunities and 

possibilities for further efficiency gains. 

The Swiss National Bank expects to see economic momentum slow in 2007. Almost all components of 

demand will continue to grow, but at a more moderate rate. Private consumption will benefit from the robust 

trend in disposable incomes. 

Swiss Post will continue to benefit from the favourable economic trend. In 2007, it will probably be able to 

increase the value of the company, generate an adequate profit and finance its investments from its own 

resources. This outlook, coupled with the successful trend of the past three years, should not deter us from 

adhering to our strategy and implementing it rigorously, against a backdrop of increasingly fierce competition, 

persistent substitution effects and a stillinadequate equity base. 

93

94 Annual Report | Financial Report | Financial statements of Swiss Post Group 

Financial statements of Swiss Post Group 

Consolidated income statement 

CHF m 

Net sales from logistics services 

Income from financial services 

Other operating income 

Total operating income 5 7 895 7 499 

Staff costs 

Resale merchandise and service expenses 

Expenses for financial services 

Other operating expenses 

Depreciation and amortization 

Total operating expenses – 7 072 – 6 694 

Operating result 5 823 805 

Financial income 

Financial expenses 

Income from associates 

Earnings before taxes 839 815 

Income taxes 14 – 2 – 4 

Group profit 837 811 

Allocation of Group profit 

Group profit attributable to the Swiss Confederation (owner) 

Group profit attributable to minority interests 

Group profit 837 811 

Note 

6 

7 

8, 9 

10 

6 

11 

24, 25 

12 

13 

23 

2006 

5 907 

1 576 

412 

– 3 711 

– 1 524 

– 373 

– 1 207 

– 257 

14 

– 11 

13 

835 

2 

2005 

5 690 

1 504 

305 

– 3 704 

– 1 365 

– 263 

– 1 110 

– 252 

12 

– 9 

7 

809 

2

Consolidated balance sheet 

Annual Report | Financial Report | Financial statements of Swiss Post Group 

CHF m Note 

31.12.2006 31.12.2005 

Assets 

Cash 2 806 2 296 

Receivables due from banks 15 13 804 11 934 

Interestbearing amounts due from customers 15 81 81 

Trade accounts receivable 15 1 034 918 

Other receivables 15 751 755 

Inventories 16 79 54 

Noncurrent assets held for sale 34 12 12 

Financial assets 17 – 22 34 712 32 186 

Investments in associates 23 42 35 

Property, plant and equipment 24 2 060 1 743 

Intangible assets 25 199 106 

Deferred income tax assets 14 20 10 

Total assets 55 600 50 130 

Equity and liabilities 

Customer deposits 26 48 364 43 630 

Other financial liabilities 26 757 474 

Trade accounts payable 756 670 

Other liabilities 889 746 

Provisions 27 586 562 

Employee benefit obligations 9 2 627 3 122 

Current income tax liabilities 2 1 

Deferred income tax liabilities 14 14 3 

Total liabilities 53 995 49 208 

Endowment capital 1 300 1 300 

Capital reserves 904 554 

Retained earnings – 901 – 1 386 

Reserves for selfinsurance 265 265 

Fair value reserves 26 183 

Hedging reserves 1 0 

Currency translation reserves 3 1 

Equity attributable to the owner 1 598 917 

Minority interests 7 5 

Total equity 1 605 922 

Total equity and liabilities 55 600 50 130 

95


Consolidated statement of changes in equity 

Endowment 

capital 

Capital 

reserves 

Retained 

earnings 1 

Reserves 

for selfinsurance 

Fair value 

reserves 

Hedging 

reserves 

Currency 

translation 

reserves 

Equity 

attributable 

to the 

owner 

Minority 

interests 

CHF m Note 

As at 1.1.2005 1 300 204 – 1 845 265 342 0 0 266 3 269 

Decrease in fair value reserves on 

“available forsale” financial assets 

Gains transferred to the income 

17 – 46 – – – 46 – 46 

statement due to the sale of financial 

assets 

Amortization of fair value reserves 

on financial assets reclassified as 

17 – 11 – – – 11 – 11 

“held to maturity” 

Change in unrealized gains / losses 

on hedging reserves for cash flow 

17 – 102 – – – 102 – 102 

hedges (net) 

Realized gains/losses transferred to 

– 0 – – 0 

the income statement from cash flow 

hedges – 0 – – 0 

Change in currency translation reserves 

Total expenses/income recognized 

– – 1 1 1 

under equity – 159 0 1 – 158 – 158 

Group profit 809 809 2 811 

Total profit for the period 809 – 159 0 1 651 5 656 

Dividends – 350 – 350 – 1 – 351 

Transfer to capital reserves 350 – 350 1 351 

As at 31.12.2005 1 300 554 – 1 386 265 183 0 1 917 5 922 

As at 1.1.2006 1 300 554 – 1 386 265 183 0 1 917 5 922 

Decrease in fair value reserves on 

“available forsale” financial assets 

Gains transferred to the income 

17 – 110 – – – 110 – 110 

statement due to the sale of financial 

assets 

Amortization of fair value reserves 

on financial assets reclassified as 

17 – 5 – – – 5 – 5 

“held to maturity” 

Change in unrealized gains/losses 

on hedging reserves for cash flow 

17 – 42 – – – 42 – 42 

hedges (net) 

Realized gains/losses transferred to 

– – 8 – – 8 – 8 

the income statement from cash flow 

hedges – 9 – 9 9 

Change in currency translation reserves 

Total expenses/income recognized 

– – 2 2 2 

under equity – 157 1 2 – 154 – 154 

Group profit 835 835 2 837 

Total profit for the period 835 – 157 1 3 681 7 688 

Dividends 9 – 350 – 350 – 350 

Transfer to capital reserves 9 350 – 350 – 350 

As at 31.12.2006 1 300 904 – 901 265 26 1 3 1 598 7 1 605 

1 Includes initial recognition under IAS 19 “Employee Benefits” of employee benefit obligations of 3,658 million francs on 1 January 2002. 

Total


On 1 January 1998, the Swiss Confederation provided Swiss Post with interestfree endowment capital of 

1,300 million francs. 

Bearing in mind economic viability and cover requirements, insurance risks are financed primarily through 

a selfinsurance solution, as a result of which exceptional claims may affect the result. A special, appropriated 

reserve was created under Equity to cover this risk, which is borne by the Group itself. Major and special risks 

are insured externally. Under Article 14 of the Postal Organization Act (POA), Swiss Post is exempt from the 

duty to obtain insurance laid down in federal and cantonal law. 

Fair value reserves include fluctuations in the value of “availableforsale” financial assets, which are caused 

mainly by fluctuations in capital market interest rates. When financial assets are sold, the fair value reserve is 

realized in the income statement. 

Hedging reserves include net gains and losses resulting from fair value changes attributable to the effective 

portion of cash flow hedges. The hedging reserves are released to the income statement when the hedged 

item affects the income statement. PostFinance has only been using hedge accounting since the third quarter 

of 2005. 

97


Consolidated cash flow statement 

CHF m Note 

2006 2005 


Depreciation and amortization 24, 25 257 252 

Net gains from the sale of property, plant and equipment – 52 – 36 

Net writedowns of financial assets 7 – 31 

Net decrease in provisions – 164 – 62 

Other net financial income/(expense) (excl. financial services) – 12 – 27 

Other noncash income/expense – 3 0 

Change in net current assets: 

Decrease in receivables 50 48 

(Decrease)/increase in liabilities 41 – 121 

Decrease/(increase) in other noninterestbearing current assets 

Change in items from financial services: 

– 8 0 

Decrease/(increase) in receivables due from banks (term of three months or more) 45 – 195 

Increase in financial assets – 2 646 – 232 

Change in customer deposits/interestbearing amounts due from customers 4 734 3 269 

Change in other receivables/liabilities from financial services 167 – 69 

Income taxes paid – 8 – 8 

Net cash from operating activities 3 247 3 603 

Investment in property, plant and equipment 24 – 492 – 329 

Investment in intangible assets (excl. goodwill) 25 – 13 0 

Investment in subsidiaries, minus cash and cash equivalents acquired 33 – 35 – 13 

Investment in associates 0 – 5 

Proceeds from disposal of property, plant and equipment 110 52 

Proceeds from disposal of other (nonoperating) financial assets (net) – 19 – 28 

Interest received (excl. financial services) 12 15 

Net cash used in investing activities – 437 – 308 

Decrease in other financial liabilities – 30 – 58 

Interest paid – 4 – 2 

Transfer from earnings available for appropriation to Swiss Post pension fund 9 – 350 – 350 

Dividends paid to minority interests – 2 – 1 

Net cash used in financing activities – 386 – 411 

Change in cash and cash equivalents 2 424 2 884 

Cash and cash equivalents at 1 January 12 935 10 051 

Cash and cash equivalents at 31 December 15 359 12 935 

Cash and cash equivalents include: 

Cash 2 806 2 296 

Receivables due from banks with an original term of less than three months 15 12 553 10 639 

Total cash and cash equivalents at 31 December 15 359 12 935


Notes to the consolidated financial statements 

1 Business activities of Swiss Post 

Swiss Post is a public organization with its head office in Berne which is wholly owned by the Swiss Confederation. 

Swiss Post and its subsidiaries (hereinafter referred to as Swiss Post) provide logistics and financial 

services both in Switzerland and abroad; see Note 5 (Segment information). 

2 Accounting principles 

Introduction 

The consolidated financial statements of Swiss Post have been prepared in accordance with International 

Financial Reporting Standards (hereinafter referred to as IFRS). They also comply with the Postal Organization 

Act. 

The consolidated financial statements are drawn up on the basis of historical cost. Exceptions to this rule are 

described in the accounting principles set out below. For instance, derivative financial instruments and financial 

assets held for trading, designated at fair value and classified as “available for sale” are carried in the balance 

sheet at their fair value. 

To take account of the characteristics of the financial services and their importance for Swiss Post, net income 

from financial services is shown separately in Note 6 (Net income from financial services). Furthermore, the 

balance sheet is not broken down into current and noncurrent items, but structured according to descending 

liquidity in accordance with IAS 30 (Disclosures in financial statements of banks and similar financial institutions). 

Financial expenses and income from financial services and the underlying cash flows are shown as operating 

expenses, income or cash flows. Financial expenses and income from other business units are stated as 

nonoperating financial income or expense (excluding financial services) and the relevant cash flows as investment 

or financing transactions. 

99


Revised International Accounting Standards (IAS) and new International 

Financial Reporting Standards (IFRS) 

In the reporting period, the new disclosure requirements of IAS 19 were applied for the first time. 

The following IAS and IFRS amendments and modifications took effect on 1 January 2006: 

Standard/Interpretation Implications for Swiss Post 2006 Annual Report: 

IAS 19 Employee Benefits Expanded disclosure requirements were applied. 

IAS 21 The Effects of Changes in Foreign Exchange Rates No significant impact 

IAS 39 Financial Instruments: Recognition and Measurement No significant impact 

IFRS 1 Firsttime Adoption of IFRS No significant impact 

IFRS 4 Insurance Contracts No significant impact 

IFRS 6 Exploration for and Evaluation of Mineral reRources No significant impact 

IFRIC 4 Determining whether an Arrangement Contains a Lease No significant impact 

IFRIC 5 Rights to Interests Arising from Decommissioning, Restoration and 

Environmental Funds 

No significant impact 

The following amendments and modifications came into force as of 31.12.2006: 

Standard/Interpretation Possible implications on Swiss Post financial 

statements after 31.12.2006: 

IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting 

in Hyperinflationary Economies 

No significant impact 

IFRIC 8 Scope of IFRS 2 Sharebased Payment No significant impact 

IFRIC 9 Reassessment of Embedded Derivatives No significant impact 

IFRIC 10 Interim Financial Reporting and Impairment No significant impact 

IAS 1 Presentation of Financial Statements No significant impact 

IFRS 7 Financial Instruments: Disclosures Expanded disclosure regulations will be applied as 

of 1.1.2007. No impact on valuation and classification 

of financial instruments. 

IFRIC 11 IFRS 2: Group and Treasury Share Transactions No significant impact 

IFRS 8 Operating Segments New presentation of segment report. 

IFRIC 12 Service Concession Arrangements No significant impact 

Information about the current situation of Swiss Post in the public sphere 

The consolidated balance sheet in both of 2002 and 2003 showed equity to be negative after the provision 

of 3.7 billion francs for employee benefit obligations was recognized in accordance with IAS 19 as at 1 January 

2002 (opening balance sheet as per IFRS). Thanks in particular to retained earnings, the consolidated balance 

sheet as at 31 December 2004 showed positive equity again for the first time. Funding of the shortfall by 

the Swiss Confederation was not prejudiced in any way as a result of these provisions for pension obligations 

being recognized in the balance sheet. On 29 October 2003, the Federal Council set out the principles according 

to which the problems associated with the pension funds of the Swiss Confederation and former governmentowned 

enterprises would be solved. 

In preparing the financial statements, the Board of Directors and Executive Management considered the 

following: 

As steps are taken towards liberalization, pressure on the earnings base of Swiss Post will increase. If the 

existing production and distribution structures are maintained, Swiss Post might soon no longer be able 

to cover the expenses thus incurred with the relevant revenues generated in the market. With this in mind, 

Executive Management and the Board of Directors have planned and implemented measures to ensure that 

the cost reductions required in future are achieved through the necessary structural adjustments. 

If – as a result of decisions beyond the sphere of influence of Executive Management and the Board of Directors 

– the measures planned and initiated cannot be fully implemented, and if the additional financial burdens 

are not covered by publicsector funds, it is conceivable that Swiss Post might report a loss. This would 

mean that Swiss Post would no longer be able to independently generate the financial resources required to 

continue operations. 

In light of the aforementioned dependencies and due to the existing state guarantee, Swiss Post’s 

consolidated financial statements are prepared on a goingconcern basis despite the fact that its equity 

base is still inadequate.

3 Consolidation and accounting principles 


The consolidated financial statements of Swiss Post comprise the parent – Swiss Post – and all companies in 

which Swiss Post holds over 50 percent of the voting rights, whether directly or indirectly, or where Swiss Post 

is responsible for operational and financial management. These companies are fully consolidated. The consolidated 

financial statements are based on the individual accounts of the parent and the subsidiaries, which in 

turn are prepared in accordance with uniform principles as at a uniform closing date. 

All intraGroup receivables, liabilities, expenses and income from intraGroup transactions and unrealized intercompany 

profits are eliminated in the consolidation. Minority interests in the equity of consolidated companies 

are presented as a separate item within equity. Minority interests in Group profit or loss are presented outside 

the consolidated income statement. 

Investments in associates where Swiss Post has 20 to 50 percent of the voting power and/or significant influence 

but which it does not control are not consolidated, but accounted for by the equity method and reported 

under Investments in associates. Joint ventures with 50 percent of the voting power in which Swiss Post 

has significant influence but which it does not control are recognized and disclosed by the same method. 

Under the equity method, the investment’s value is calculated based on the historical cost, plus or minus the 

proportionate profit or loss since the acquisition date. Material holdings and transactions with these companies 

are posted separately as items with associates. Investments under 20 percent are presented as financial 

assets classified as “available for sale“. 

Companies acquired during the reporting period are included in the consolidated financial statements from 

the date on which Swiss Post assumes effective control. Companies that are sold are included until the date of 

sale. 

Please see Note 32 (Scope of consolidation) for an overview of Swiss Post subsidiaries and associates. 

Currency translation 

The consolidated financial statements of Swiss Post are drawn up in Swiss francs (CHF). 

Transactions in foreign currencies are translated at the daily rate ruling at the transaction date. At the balance 

sheet date, monetary assets and liabilities in foreign currencies are translated at the closing rate. 

Assets and liabilities in balance sheets of fully consolidated companies that have been prepared in a foreign 

currency are translated into Swiss francs at the closing rate. The income statement, cash flow statement and 

other transactions are translated at the average rate for the reporting period. Translation differences arising 

from the translation of balance sheets and income statements of foreign subsidiaries are taken directly to consolidated 

equity. 

Recognition of income 

Income is recognized if it is clear that the economic benefits associated with the transaction will flow to Swiss 

Post and if the economic benefits can be measured reliably. 

Income from logistics services is recognized after sales deductions at the time the service is provided. Income 

from the sale of products is recognized in the income statement if the risks and rewards incidental to ownership 

of the products have been transferred to the purchaser. Swiss Post receives compensation from the 

Swiss Confederation for public passenger transport services and the uncovered costs of newspaper transport, 

which is recognized in the income statement on an accrual basis. 

Commission and service income from financial services is recognized on an accrual basis. Interest income on 

financial assets and interest expenses for customer deposits are accounted for under the accrualbased 

accounting principle. The effective interest method is used for interest earned on heldtomaturity and availableforsale 

fixedinterest financial assets. 

Cash 

Cash includes cash holdings in Swiss francs and foreign currencies as well as assetside cash in transit (cash 

payments made at post offices which have not yet been credited to the PostFinance account (SIC) held at the 

Swiss National Bank). Cash holdings are measured at face value. 

101


Financial receivables 

Receivables due from banks and interestbearing amounts due from customers (technically overdrawn Yellow 

Accounts) are measured at amortized cost under the effective interest method and usually correspond to 

the face value. If there are specific doubts as to a borrower’s creditworthiness, an appropriate impairment 

charge may be recognized. 

Trade accounts receivable and other receivables 

Trade accounts receivable and other receivables are carried in the balance sheet at amortized cost, which 

usually corresponds to the face value, minus an impairment charge for doubtful receivables. 

Inventories 

Inventories comprise resale merchandise, fuel and operating materials. They are measured at the lower of 

historical or manufacturing cost and fair value less costs to sell. The historical or manufacturing cost is determined 

according to the weighted average cost method. Appropriate impairments are recognized for inventories 

that are not easily marketable. 

Financial assets 

Financial assets acquired with the aim of generating shortterm gains by making targeted use of fluctuations in 

market prices are measured as financial assets at fair value, i.e. they are classified as at “Fair value through 

profit or loss, held for trading”. Fair value changes in this category are taken to the income statement. Swiss 

Post has not so far designated any financial assets as at fair value through profit or loss at initial recognition. 

Financial assets with a fixed term to maturity, where Swiss Post has the positive intent and ability to hold them 

until maturity, are classed as “Held to maturity“ and carried in the balance sheet at amortized cost under 

the effective interest method. The effective interest method distributes the difference between the historical 

and repayment value (premium/discount) over the term to maturity of the asset in question using the annuity 

method. This results in a constant rate of interest until maturity. 

Other financial assets, which are held for an indefinite period and can be sold at any time for liquidity reasons 

or in reaction to changing market conditions, are classed as “available for sale“ and are recognized at their 

fair value. Unrealized gains and losses are recognized under “Fair value reserves“ on financial assets in equity 

and are taken to the income statement only when the financial asset is sold or if an impairment is recognized. 

Currency translation differences on monetary financial assets classed as “available for sale“ are taken to the 

income statement. 

Loans granted by Swiss Post are carried in the balance sheet at amortized cost. Financial assets are entered in 

the balance sheet as at their due date. 

Swiss Post checks its financial assets on a regular basis for any indication that an asset may be impaired. If 

there are indications that an asset is impaired, the recoverable amount is estimated. The recoverable amount 

on interestbearing assets and loans is the present value of expected future cash flows from interest payments 

and repayments. The present value of “held to maturity” assets and loans is calculated on the basis of the 

original effective rate of interest on the financial assets in question. If the recoverable amount is less than the 

carrying amount of a financial asset, the difference is entered as an impairment in the income statement. 

The present value of “availableforsale” financial assets is calculated at the current market interest rate. If an 

impairment is recognized on an “availableforsale” financial asset, the cumulative net loss on this asset recognized 

in equity is eliminated from equity and taken to the income statement. If the fair value of an interestbearing 

asset such as a bond is less than the carrying amount solely due to a change in market interest rates, 

no impairment is recognized provided the issuer’s credit standing is considered to be good. In this case, the 

change in the fair value of financial assets classed as “available for sale” is taken directly to equity. Writedowns 

of equity instruments in the “availableforsale” category are recognized if a significant (i.e. loss of 20 percent 

on the original purchase price) or prolonged (i.e. lasting nine months or more) reduction in fair value is identified. 

No reversals of impairment losses are recognized in the income statement until the assets’ disposal; positive 

changes in value are taken directly to equity. 

Derivative financial instruments are used mainly to hedge currency and interest rate risks and to a small extent 

for trading. 

Hedge accounting is applied if derivative financial instruments are effective in offsetting changes in fair value 

or cash flows attributable to the hedged risks. The effectiveness of these hedges is reviewed every six months. 

Fair value hedges are used to hedge exposure to changes in fair value of an asset or liability. Changes in the 

fair value of both the hedging instrument and the hedged item are recognized in the income statement.


Cash flow hedges are used to hedge future transactions. Changes in value to the extent a hedge is effective 

are recognized in equity, while changes in value to the extent a hedge is ineffective are recognized in the income 

statement. 

Derivatives that are not accounted for using hedge accounting are treated as instruments held for trading. 

Derivative financial instruments acquired for trading purposes are recognized at fair value when the transaction 

is concluded and are subsequently measured at fair value. Changes in the fair value of instruments held 

for trading are recognized in the income statement. 

The fair values of financial instruments are determined on the basis of stock market prices and valuation models 

(annuity method, etc.). For listed financial instruments, the fair values correspond to the market prices. 

For unlisted monetary financial instruments, the fair values are determined by discounting the cash flows, using 

the current interest rate applicable to similar instruments with the same maturity. 

Repurchase and reverse repurchase (repo) transactions and securities lending transactions 

Cash outflows arising from reverse repurchase transactions are stated as receivables due from banks. Financial 

assets obtained from transactions as collateral are not recognized in the balance sheet. Transactions are 

accounted for in the balance sheet on their due date. Interest income from reverse repurchase transactions is 

accounted for under the accrualbased accounting principle. 

Financial assets transferred as collateral in repurchase transactions continue to be recognized in the balance 

sheet under “Financial assets“. The cash inflow is reported under “Other financial liabilities“. Interest expenses 

from repurchase transactions are accounted for under the accrualbased accounting principle. 

In respect of securities lending and borrowing, Swiss Post engages in securities lending only. The loaned financial 

instruments continue to be recognized in the balance sheet as financial assets. 

Securities cover for repurchase, reverse repurchase and securities lending transactions is recognized on a daily 

basis at current fair values. 

Property, plant and equipment 

Property, plant and equipment is recognized in the balance sheet at historical cost less cumulative depreciation. 

Depreciation is accounted for on a straightline basis in line with the estimated useful life, as follows: 

Plots of land none 

Operating property 20 – 60 years 

Equipment 3 – 20 years 

Machinery 3 – 15 years 

IT equipment 3 – 10 years 

Furniture 3 – 20 years 

Track vehicles 10 – 30 years 

Other vehicles 3 – 10 years 

Tenant fitouts and installations in rented premises that are recognized as part of the cost of the assets are 

depreciated over the estimated useful life or the duration of the rental agreement, if shorter. Property, plant 

and equipment comprising components with different useful lives is recognized and depreciated separately. 

The useful lives of items of property, plant and equipment are reviewed on an annual basis. There are no 

significant properties to be classified as investment properties in accordance with IAS 40. 

103


Major renovations and other costs that add value are recognized as part of the cost of the assets and 

depreciated over their estimated useful lives. Costs for repairs and maintenance are recognized as expenses. 

Interest on borrowings for assets under construction is not capitalized but carried as an expense. 

Leases 

Lease agreements for properties, installations, other property, plant and equipment and vehicles where Swiss 

Post substantially assumes all risks and rewards incidental to ownership are treated as finance leases. The 

fair value of the leased object is recognized at inception of the lease and carried as an item of property, plant 

and equipment. Future lease payments are discounted and posted as a liability. Each lease payment is broken 

down into amortization and interest expense components. The amortization component is deducted from 

the recognized lease obligation. 

The other lease agreements are recognized as operating leases. The lease payments are carried in the income 

statement over the term of the lease. 

In classifying longterm property leases, land and building elements are assessed separately. Subject to certain 

conditions, buildings are accounted for as finance leases. As a rule, leases in respect of plots of land are classified 

as operating leases due to the indefinite useful life. 

Intangible assets 

In the event of a business combination, recognized goodwill is carried in the balance sheet at cost less impairment. 

In the event of an acquisition, the purchase price is allocated among the identifiable assets and liabilities. 

Additions of intangible assets not acquired through business combinations are recognized at cost and written 

down over the period of their useful life. The estimated useful lives of intangible assets are reviewed on a 

regular basis. 

Impairment (property, plant and equipment and intangible assets) 

Items of property, plant and equipment and intangible assets (excl. goodwill) are checked regularly to determine 

if there are signs of overvaluation. If there are signs of overvaluation, the carrying amount is compared 

with the net recoverable amount (the higher of net selling price and value in use). If the carrying amount 

of an asset exceeds its recoverable amount, an impairment equal to the difference between the carrying 

amount and the recoverable amount is recognized in the income statement. The carrying amount of goodwill 

is reviewed at least annually. 


Customer deposits held with PostFinance such as Yellow Accounts, Deposito Accounts and investment accounts, 

as well as fixedterm deposits, are measured at amortized cost, which usually corresponds to the face 

value. 

Other financial liabilities 

Other financial liabilities comprise amounts due to banks (which are measured at amortized cost), derivatives 

measured at fair value, finance lease obligations and repurchase transactions. 

Provisions 

Provisions are made provided that – at the time the balance sheet is drawn up – a past event has resulted in a 

present obligation and a cash outflow is probable and can be measured reliably. 

Restructuring provisions are made only upon presentation of a detailed plan and following the necessary communication. 

Swiss Post bears a number of risks itself in accordance with the principle of selfinsurance. Provisions are made 

for expected expenses arising from claims incurred that are not insured externally.


Employee benefits 

Most of the employees are insured with the Swiss Post pension fund, a defined benefit plan. In line with statutory 

provisions, the plan covers risks resulting from the economic consequences of old age, disability and 

death. The expenses and obligations arising from the pension plan are calculated annually using the projected 

unit credit method. The service years worked by employees as at the balance sheet date are taken into 

account, and assumptions are made as to future wage trends. 

The effects of plan amendments are taken directly to the income statement, provided they resulted in justifiably 

acquired rights. Other effects are recognized equitably in the income statement over the assumed average 

remaining working lives of the insureds. Actuarial and assetrelated cumulative gains and losses are recognized 

on a straightline basis over the average remaining working lives, provided they exceed 10 percent of the 

higher of the pension assets and obligations (projected benefit obligation). 

For the other pension plans, transferred employer contributions are charged to the income statement in 

accordance with the rules for defined contribution plans. 

Provisions for other longterm benefits due to employees (loyalty bonuses for long years of service) and staff 

vouchers for retired employees are also determined in line with the projected unit credit method. 

Income taxes 

In accordance with Article 13 of the Postal Organization Act, the parent (Swiss Post) only pays tax on profit 

arising from competitive services under Article 9 of the Postal Act. Profit earned by Swiss and foreign subsidiaries 

is subject to tax at the regular rates applicable in the country in question. 

Deferred income taxes are determined for the taxable services provided by Swiss Post and its subsidiaries on 

the basis of current or expected national tax rates. Deferred income taxes take into account the income taxrelated 

implications of temporary differences between the carrying amounts of assets and liabilities in the 

consolidated financial statements and their tax base (balance sheet liability method). Tax loss carryforwards are 

taken into account in calculating deferred taxes only to the extent that it is probable that sufficient taxable 

profits will be generated in future, against which these can be offset. 

Non-current assets held for sale and discontinued operations 

Noncurrent assets (property, plant and equipment and intangible assets) or groups of assets (e.g. an entire 

operation) are classified as “held for sale” if they are no longer in use and Swiss Post intends to dispose of 

them. Noncurrent assets held for sale are measured at the lower of carrying amount and fair value less costs 

to sell and no longer depreciated/amortized. 

A discontinued operation comprises clearly identifiable activities that have already been sold or that are classified 

as “noncurrent assets held for sale”. 

4 Estimation uncertainty and management’s judgment used in applying accounting policies 

Preparation of the consolidated financial statements requires the use of estimates and assumptions. Although 

these estimates and assumptions were based on Executive Management’s best knowledge of current events 

and possible future actions on the part of Swiss Post Group, actual results may ultimately differ from these 

estimates. The assumptions and estimates with the greatest risk of causing a material adjustment to the carrying 

amount of an asset or liability within the next financial year are explained below. 

Those accounting policies that may have a material impact on the consolidated financial statements as a result 

of Executive Management’s judgments are also explained. 

Estimation uncertainty 

(a) Useful lives of items of property, plant and equipment 

The useful lives of items of property, plant and equipment are defined on the basis of current technical 

conditions and past experience. However, as a result of technological change and market conditions, actual 

useful lives may differ from those originally defined. In the event of differences compared with the useful 

lives originally defined, these are adjusted. In the event of technical obsolescence, the assets are also depreciated 

or sold. 

105


(b) Employee benefit obligations 

Expenses and obligations arising from pension plans are calculated annually using the projected unit credit 

method. The calculations are based on various actuarial assumptions such as the expected longterm return on 

plan assets, expected wage trends and the discount rate for pension obligations. 

(c) Fair values of financial instruments 

Fair values of financial assets that are not traded publicly on a stock exchange are measured using recognized 

estimation methods. This requires making assumptions based on observed market information. The discounted 

cash flow (DCF) method was used to determine the fair value of some unquoted availableforsale financial 

assets. The DCF is calculated on the basis of Bloomberg yield curves, taking the relevant parameters (rating, 

maturity, etc.) into account. 

Management’s judgment used in applying accounting policies 

(a) Heldtomaturity investments 

Investments with a fixed maturity which Swiss Post intends and is able to hold to maturity are classified 

as “held to maturity”. If Swiss Post does not manage to hold these investments to maturity, all investments 

assigned to this category must be reclassified as “available for sale”. As a result, they would no longer be 

measured at amortized cost but at fair value. 

(b) Impairment of availableforsale financial assets and heldtomaturity investments 

Swiss Post follows the guidance set out in IAS 39 “Financial Instruments: Recognition and Measurement” to 

determine whether there is evidence of impairment. In measuring impairment, the management takes into 

account various factors such as maturity, sector, outlook, technological conditions, etc. 

5 Segment information 

Basics 

Segment reporting is based on Swiss Post’s internal organizational and management structures. Transactions 

between the segments are based on a catalogue of services and a manual covering transfer prices. Transfer 

prices are calculated on the basis of commercial criteria. Reporting has been extended to include the 

“New businesses” segment. This segment includes MailSource Group and the GHP Group, which was acquired 

during the reporting period. Prioryear amounts were adjusted accordingly. 

Note 32 (Scope of consolidation) illustrates how Swiss Post accounting units and subsidiaries are assigned to 

the segments. 

Primary segmentation 

Mail Services relating to addressed letters, newspapers, unaddressed items, electronic 

services. 

Logistics Parcels, express and courier deliveries, transport, logistics services. 

Financial Services Services relating to payments, investments, retirement planning and financing. 

Passenger Transport Roadbased passenger transport and supplementary services. 

International Mailing and receipt of letters and parcels to and from countries abroad and related 

services in countries abroad. Mailing of newspapers/magazines. 

Post Office Network Sales channel for postal products/services and additionally for thirdparty products for 

private customers and small and mediumsized enterprises. 

New Businesses Services in promising markets such as direct marketing and customer management. 

Includes subsidiaries of MailSource Group and the newly acquired GHP Group. 

Other Swiss Post units which cannot be assigned to the segments (service and management 

units, such as Real Estate, Information Technology and Philately). 

Consolidation Effects of intraGroup elimination. 

Secondary segmentation 

Assignment to the “Switzerland” segment and the “International and crossborder” segment is based on 

geographical criteria. The “International and crossborder” segment includes the total turnover of Swiss Post 

International and the other foreign subsidiaries.


Statutory mandates 

Statutory mandates require Swiss Post to provide a universal service throughout Switzerland. Pricing within 

the universal service is not at Swiss Post’s discretion. Price changes affecting reserved services (monopoly) are 

subject to approval by the Federal Department of the Environment, Transport, Energy and Communication 

(UVEK). The price watchdog can check the prices at any time, owing to Swiss Post‘s dominant position in the 

market. 

Based on the Postal Act, Swiss Post provides reserved, nonreserved and competitive services. Reserved services 

(where Swiss Post has a monopoly) are provided by the Mail (addressed letters) and International (mailing 

and receipt of international letters) segments. Since 1 January 2004, all products (excluding catalogues weighing 

between 0.5 and 1 kg) in the Logistics Services segment have been considered as nonreserved services or 

competitive services (complete deregulation). 

The letter market was partially deregulated on 1 April 2006. The monopoly limit was reduced to 100 grams. 

Swiss Post can thus continue to ensure a highquality basic service at reasonable prices. By providing a basic 

postal service, it is helping to strengthen the public service in Switzerland. 

After compensation for services provided by the post office network, noncovered costs remain, which are 

charged to the Mail segment (reserved services). The post office network’s operating profit of 27 million francs 

(2004: 19 million francs) corresponds to the profit from the sale of nonpostal brandname products. This 

results in higher expenses, as part of a new system of measurement, which are reflected in the lower operating 

result. 

Compensation from the Swiss Confederation 

Swiss Post receives the following compensation for logistics services from the Swiss Confederation, disclosed 

under “Net sales”: 

– Mail segment: 80 million francs (2005: 80 million francs) for uncovered costs incurred in transporting newspapers. 

– Passenger Transport segment: 187 million francs (2005: 181 million francs) for public passenger transport 

services provided. 

Composition of segment assets and liabilities 

If possible, the assets and liabilities resulting from a segment’s operating activities are assigned to the appropriate 

segments. As the segment “Financial services” result includes financial income and expenses relating to 

operations, the corresponding interestbearing assets and liabilities are accounted for in the segment’s assets 

and liabilities. 

The “Other” column mainly includes the following items in the segment’s assets and liabilities: 

– the carrying amounts of the parent’s centrally managed properties 

– employee benefit obligations 

Unallocated assets and liabilities comprise those (primarily loans, e.g. to PostBus operators) that are essentially 

financial and therefore not assigned to segment assets or segment liabilities. 

Further information 

Noncash expenses/income primarily include those incurred in setting up and releasing provisions without 

affecting cash. 

107


Results by business segment 

2006 Mail Logistics Financial Passenger 

Services Services Transport1 Interna- Post Office New Busitional 

Network ness2 Other3 Consoli- Group 

dation 

CHF m 

Operating income 

Note 

with customers 2 703 1 072 1 578 577 1 077 406 321 161 – 7 895 

with other segments 380 314 9 2 2 1 375 8 721 – 2 811 – 

Total operating income 3 083 1 386 1 587 579 1 079 1 781 329 882 – 2 811 7 895 

Operating result 239 87 245 28 58 19 11 136 823 

Financial profit/loss 12, 13 3 

Profit/loss from associates 23 2 – 2 0 8 – 0 1 – 13 

Income taxes 14 – 2 

Group profit 837 

Segment assets 599 296 52 105 177 656 460 362 2 214 – 3 869 53 000 

Associates 5 – 14 2 15 – – 6 42 

Nonallocated assets4 2 558 

Total assets 55 600 

Segment liabilities 368 282 51 339 324 614 438 159 3 895 – 3 869 53 550 

Nonallocated liabilities4 445 

Total debt 53 995 

Investment in property, plant and 

equipment and intangible assets 24, 25 65 57 16 25 7 0 18 317 505 

Depreciation 24, 25 35 50 26 25 5 1 10 105 257 

Impairment 17, 25 – – 10 0 1 – 1 – 12 

Reversal of impairment 17, 25 0 – – 0 – 4 – – 4 

Other noncash (expenses)/income – 18 – 6 – 2 – 11 – 1 0 1 – 164 – 201 

Headcount 5 15 183 5 118 2 526 1 502 987 11 502 3 000 2 360 42 178 

1 The Passenger Transport segment is subject to the Railways Act (EBG) which provides for the accounting for licensed trasnport companies (REVO) to be handled separately. 

There are differences between REVO and IFRS. 

2 Includes the MailSource Group and the newly acquired GHP Group. 

3 Swiss Post units which cannot be assigned to the segments (service and management units such as Real Estate, Information Technology and Philately). 

4 Unallocated assets and liabilities comprise those that essentially contribute to the financial result but not to the operating result and therefore are not assigned to segment assets or segment liabilities. 

5 Average expressed in terms of fulltime equivalents. 

Results by region 

2006 Switzerland International 

and cross- 

Group 

CHF m Note 

border 

Operating income with customers 6 504 1 391 7 895 

Segment assets 51 971 1 029 53 000 

Investment in property, plant and equipment and intangible assets 24, 25 472 33 505

Results by business segment 


2005 Mail Logistics Financial Passenger 

Services Services Transport1 Interna- Post Office New Busitional 

Network ness2 Other3 Consoli- Group 

dation 

CHF m 

Operating income 

Note 

with customers 2 765 1 038 1 512 553 990 391 107 143 – 7 499 

with other segments 413 330 17 6 2 1 484 7 715 – 2 974 – 

Total operating income 3 178 1 368 1 529 559 992 1 875 114 858 – 2 974 7 499 

Operating result 218 87 312 29 35 27 5 92 805 

Financial profit/loss 12, 13 3 

Profit/loss from associates 23 1 – 2 0 4 – – 0 7 

Income taxes 14 – 4 

Group profit 811 

Segment assets 516 290 47 242 170 580 477 52 2 107 – 3 568 47 866 

Associates 4 – 14 2 11 – 0 4 35 

Nonallocated assets4 2 229 

Total assets 50 130 

Segment liabilities 306 265 46 254 132 566 436 40 4 485 – 3 568 48 916 

Nonallocated liabilities4 292 

Total debt 49 208 

Investment in property, plant and 

equipment and intangible assets 24 80 42 14 28 10 1 1 153 329 

Depreciation 24, 25 37 47 29 22 5 1 1 107 249 

Impairment 17, 25 – 0 3 – 2 – – 1 6 

Reversal of impairment 17 – – 29 – – 5 – – 34 

Other noncash (expenses)/income – 9 – 1 1 – 3 0 6 – 2 – 242 – 250 

Headcount 5 15 364 5 540 2 390 1 392 898 12 046 1 062 2 381 41 073 

1 The Passenger Transport segment is subject to the Railways Act (EBG) which provides for the accounting for licensed trasnport companies (REVO) to be handled separately. There are differences between REVO and IFRS. 

2 Reporting has been extended since the previous year. Now includes MailSource Group. 

3 Prioryear amounts have been adjusted due to segment reporting having been extended. Swiss Post units which cannot be assigned to the segments (service and management units 

such as Real Estate, Information Technology and Philately). 

4 Unallocated assets and liabilities comprise those that essentially contribute to the financial result but not to the operating result and therefore are not assigned to segment assets or segment liabilities. 

5 Average expressed in terms of fulltime equivalents. 

Results by region 

2005 Switzerland International 

and cross- 

Group 

CHF m Note 

border 

Operating income with customers 6 410 1 089 7 499 

Segment assets 47 227 639 47 866 

Investment in property, plant and equipment and intangible assets 24 318 11 329 

109


Notes to the income statement 

6 Net income from financial services 

By presenting net income from financial services in the following format, Swiss Post takes account of 

the character of these financial services. Net income is broken down into individual items in line with banking 

practice. 

2006 2005 

CHF m 

Interest income 

Interest income on amounts due from banks 45 20 

Interest income on securities lending and reverserepurchase transactions 104 48 

Interest income on interestbearing amounts due from customers 9 9 

Interest and dividend income on FVTPL1 : held for trading 0 – 

Interest and dividend income on financial assets 

Interest expense 

724 726 

Interest expense for customer deposits – 255 – 175 

Interest expense for amounts due to banks – 6 0 

Interest expense on repurchase transactions – 2 – 2 

Net interest income 619 626 

Writedowns of financial assets – 9 29 

Losses on payment transactions 0 2 – 6 

Net interest income after writedowns 610 649 

Commission income on lending business 46 23 

Commission income on securities and investment business 21 15 

Commission income on other services 18 18 

Commission expenses – 48 – 30 

Income from services 471 485 

Net services and commission income 508 511 

Net trading income 91 80 

Gain/loss on the sale of availableforsale financial assets 5 11 

Other net financial income/expense – 11 – 10 

Net income from financial services 1 203 1 241 

Shown in the consolidated income statement under: 

Income from financial services 1 576 1 504 

Expenses for financial services – 373 – 263 

1 FVTPL: Fair value through profit or loss (fair value changes are taken to the income statement). 

2 Incl. release of provisions for doubtful receivables from international payments.

CHF m 

7 Other operating income 


111 

2006 2005 

Rental income 61 57 

Gains on the sale of property, plant and equipment 56 36 

Other income 295 212 

Total other operating income 412 305 

Other income consists mainly of value added tax and customs duties collected by the International segment 

(see also Note 11, Other operating expenses) and revenue from commission business with Procter & Gamble 

and the MailSource Group’s recharging business (thirdparty services are coordinated by MailSource and 

charged to its customers). 

8 Staff costs 

2006 2005 

CHF m Note 

Wages and salaries 3 185 3 133 

Social security benefits 292 283 

Employee benefit obligations 9 154 222 

Change in restructuring provisions – 2 

Other staff costs 80 64 

Total staff costs 3 711 3 704 

Headcount 

Headcount 1 

2006 2005 

Employees at Swiss Post Group (excluding trainees) 42 178 41 073 

Employees at Swiss Post (excluding trainees) 35 326 37 033 

Trainees at Swiss Post Group 1 435 1 465 

1 Average expressed in terms of fulltime equivalents.


9 Employee benefits 

There are various employee benefit institutions in Switzerland and abroad. Most of the employees are insured 

with the Swiss Post pension fund foundation. This is a defined benefit plan. The plan insures staff employed 

by Swiss Post, affiliated organizations and companies, and Postbus operators (to the extent that the latter are 

deployed in operating Postbus routes) against the financial consequences of old age, death and disability. As 

required by law, employees are insured with the defined benefit plan no earlier than 1 January after reaching 

the age of 17 years if they have entered into a regular contract of employment under which they are compensated 

by way of a monthly salary for more than three months and the applicable annual salary exceeds 

three quarters of the maximum old age pension under Swiss Old Age and Survivors’ Insurance (AHV); or if they 

are employed to work at least one third of regular working hours. The pension fund insures an applicable 

annual salary of up to 180,000 francs. The other pension plans are immaterial in the context of the consolidated 

financial statements. 

2006 2005 

CHF m 

Accrued benefit claims 426 393 

Interest on future benefit claims 454 492 

Expected return on assets – 565 – 508 

Amortization of retroactive benefit improvements 4 4 

Employee contributions – 167 – 156 

Employee benefit obligations arising from defined benefit plans 152 225 

Employee benefit obligations for Postbus operators recognized under “Compensation paid to Postbus operators” – 10 – 10 

Employee benefit obligations for other benefit plans 12 7 

Group employee benefit obligations 154 222 

Actual return on plan assets 933 1 232 

Transactions between the Swiss Post pension fund foundation and Swiss Post are subject to terms and 

conditions consistent with those prevailing in the marketplace.


Statement of recognized employee benefit obligations arising from defined benefit plans within the Swiss Post 

pension fund foundation: 

31.12.2006 31.12.2005 

CHF m 

Present value of employee benefit obligations 15 648 15 456 

Benefit plan assets at fair value – 13 627 – 12 580 

Shortfall 2 021 2 876 

Nonamortized actuarial gains1 605 267 

Nonamortized plan amendment costs – 23 – 27 

Employee benefit obligations excluding assets set aside 24 6 

Total recognized employee benefit obligations arising from defined benefit plans 2 627 3 122 

1 This amount corresponds to the cumulative actuarial gains/losses arising from the discrepancy between assumed values and actual values and from adjustments to actuarial assumptions. 

Change in recognized employee benefit obligations arising from defined benefit plans 

2006 2005 

CHF m 

As at 1.1 3 122 3 523 

Employee benefit obligations arising from defined benefit plans 152 225 

Employer contributions paid – 315 – 276 

Appropriation of profits – 350 – 350 

Additions to scope of consolidation 18 – 

As at 31.12 2 627 3 122 

of which: 

shortterm, i.e. payments falling due within the next 12 months 152 277 

longterm 2 475 2 845 

The following parameters were applied: 

31.12.2006 31.12.2005 

Actuarial assumptions 

Discount rate 3.00 % 3.00 % 

Expected change in wages 2.00 % 2.00 % 

Expected longterm return on plan assets 4.50 % 4.50 % 

Pension indexation 0.50 % 0.50 % 

Staff turnover 3.70 % 3.86 % 

Longterm benefits due to employees are shown and described under Note 27 (Provisions). 

113


Change in employee benefit obligations 

CHF m 

2006 2005 

As at 1.1 15 462 14 444 

Accrued benefit claims 426 393 

Benefits paid from plan assets – 719 – 718 

Benefits paid directly by the employer – 1 – 1 

Interest on employee benefit obligations 454 492 

Company acquisitions 18 – 

Actuarial losses 31 852 

Currency translation differences 0 – 

As at 31.12 15 671 15 462 

Employee benefit obligations including assets set aside 15 648 15 456 

Employee benefit obligations excluding assets set aside 23 6 

Total employee benefit obligations 15 671 15 462 

Change in plan assets (at fair value) 

CHF m 

2006 2005 

As at 1.1 12 580 11 284 

Employee contributions 167 156 

Employer contributions 315 276 

Benefits paid – 719 – 718 

Return on plan assets 933 1 232 

Company acquisitions 1 – 

Appropriation of profits 1 350 350 

Currency translation differences 0 – 

As at 31.12 13 627 12 580 

1 In accordance with the Board of Directors’ resolution concerning appropriation of available earnings in 2005, a further 350 million francs was deposited in the employer’s reserve of the Swiss Post pension fund. 

As a result of available earnings being thus appropriated, capital reserves increased by the same amount.


Expected 

longterm 

return 

Percentage of total assets 

measured at fair value 

31.12.2006 31.12.2005 

Asset classes 

Bonds 3.0% 45% 46% 

Shares 7.3% 28% 29% 

Real estate 4.5% 14% 11% 

Other 2.5% 13% 14% 

Total 4.5% 100% 100% 

Change in shortfall 

The assets of the Swiss Post pension fund do not include any Swiss Post securities or real estate leased by 

Swiss Post. 

31.12.2006 31.12.2005 31.12.2004 31.12.2003 

CHF m 

Employee benefit obligations 15 648 15 456 14 437 13 626 

Plan assets – 13 627 – 12 580 – 11 284 – 10 971 

Shortfall/(surplus) 2 021 2 876 3 153 2 655 

Experience adjustments to plan liabilities 

Amount – 31 – 210 – 136 156 

in percent – 0.2 % – 1.4 % – 0.9 % 1.1 % 

Experience adjustments to plan assets 

Amount 369 724 – 12 220 

in percent 2.7 % 5.8 % – 0.1 % 2.0 % 

Experience adjustments (plan liabilities, plan assets) document the discrepancies between the planning 

assumptions and the actual trends for the year in question. 

Future employer contributions 

The regular employer contributions expected for 2007 amount to 210 million francs (2005: 256 million francs). 

115


CHF m 

10 Resale merchandise and service expenses 

2006 2005 

Resale merchandise expenses 515 407 

Compensation to PostBus operators 266 260 

Compensation paid to forwarding companies 345 322 

Compensation paid for international postal traffic 306 302 

Temporary employees 92 74 

Total resale merchandise and service expenses 1 524 1 365 

CHF m 

PostBus operators are not employed by Swiss Post but operate Postbus routes for Swiss Post under contract. 

Resale merchandise expenses rose mainly as a result of the Procter&Gamble commission business. 

11 Other operating expenses 

2006 2005 

Premises 191 191 

Maintenance and repair of property, plant and equipment 256 250 

Energy and fuel 53 47 

Operating materials 69 64 

Office and administrative expenses 152 152 

Marketing and communications 96 90 

Loss on the sale of property, plant and equipment 4 2 

Other expenses 386 314 

Total other operating expenses 1 207 1 110 

Other expenses include IT services purchased as well as value added tax and customs duties collected by the 

International segment (see also Note 7, Other operating income).

12 Financial income 


CHF m Note 

117 

2006 2005 

Interest income on other loans 22 12 11 

Other financial income 2 1 

Total financial income 14 12 

Income from PostFinance’s financial services business is posted as “Income from financial services”. 

13 Financial expenses 

CHF m Note 

2006 2005 

Interest expense on other financial liabilities 26 3 2 

Present value adjustments to provisions 27 4 5 

Interest charges on finance leases 26 0 0 

Impairment on other loans 22 1 2 

Other financial expenses 3 0 

Total financial expenses 11 9 

CHF m 

Expenses arising from PostFinance’s financial services business are posted as “Expenses for financial services”. 

14 Income taxes 

2006 2005 

Expense for current income taxes 9 8 

Income from deferred income taxes – 7 – 4 

Total expenses for income taxes 2 4 

With the exception of profits from competitive services, the vast majority of the parent’s business is not subject 

to tax. However, the proportion of taxable services could rise in future as a result of liberalization. 

As the vast majority of Swiss Post’s business is not subject to tax, tax expenses are not analysed in relation to 

pretax profits. 

Tax loss carryforwards of 254 million francs (2005: 358 million francs) were not recognized as assets at 

Swiss Post Group, as it seems uncertain that they will be utilized in the future. Potential tax savings amount to 

62 million francs (2005: 87 million francs). Tax loss carryforwards expire after seven years. 

Deferred tax assets of 20 million francs (2005: 10 million francs) comprise tax loss carryforwards and employee 

benefit reserves on the basis of IAS 19 that are not accepted for tax purposes. Deferred tax liabilities of 

14 million francs (2005: 3 million francs) were mainly the result of temporary differences between the carrying 

amounts and tax base of property, plant and equipment and other liabilities.


CHF m 

Notes to the balance sheet 

15 Receivables 

31 December 2006 31 December 2005 

Gross Writedown Net Gross Writedown Net 

Receivables due from banks 1 13 805 1 13 804 11 934 0 11 934 

Interestbearing amounts due from 

customers 83 2 81 83 2 81 

Trade accounts receivable 1 046 12 1 034 927 9 918 

Other receivables 755 4 751 759 4 755 

Total receivables 15 689 19 15 670 13 703 15 13 688 

1 

of which receivables from reverserepurchase 

transactions 

and covered by securities with a fair 

9 047 6 267 

value of 9 047 6 267 

Terms of receivables: 


Total Term to 

maturity up to 

3 months 

Term to 

maturity over 

3 months 

Total Term to 

maturity up to 

3 months 

Term to 

maturity over 

3 months 

CHF m 

Receivables due from banks 


13 804 12 553 1 251 11 934 10 639 1 295 

customers 81 – 81 81 – 81 

Trade accounts receivable 1 034 – 1 034 918 – 918 

Other receivables 751 – 751 755 – 755 

Total receivables 15 670 12 553 3 117 13 688 10 639 3 049 

There are no receivables with a term of more than one year. Receivables due from banks comprise current 

account balances, moneymarket instruments and reverserepurchase transactions. The current accounts mainly 

relate to Swiss Post’s international payment transactions. The moneymarket instruments and reverserepurchase 

transactions arise from the management of customer deposits. Securities cover for reverse repurchase transactions 

is recognized on a daily basis at current fair values. 

Interestbearing amounts due from customers comprise technical overdrafts on Yellow Accounts.

CHF m 

16 Inventories 


119 

31.12.2006 31.12.2005 

Resale merchandise 44 38 

Fuel and operating materials 36 17 

Value adjustment for inventories which are not easily marketable – 1 – 1 

Total inventories 79 54 

CHF m 

17 Financial assets 

FVTPL 1 

held for 

trading 

Held to 

maturity 

Available 

for sale 

Derivative 

financial 

instruments 

Note 18 19 20 21 22 

Loans Total 

As at 1.1.2006 2 22 101 7 091 10 2 982 32 186 

Additions due to acquisition of subsidiaries – – 0 – 6 6 

Additions 

Change in value recognized in income 

20 6 384 1 298 6 1 468 9 176 

statement 0 – 133 3 – – 36 – 166 

Change in value recognized directly in equity – – – 114 – 0 – 114 

Impairment loss, net – – 7 – – 0 – 7 

Reclassifications 0 2 515 – 2 515 – 0 0 

Disposals – 22 – 4 535 – 1 341 – – 471 – 6 369 

As at 31.12.2006 0 26 325 4 422 16 3 949 34 712 

CHF m 

FVTPL 1 

held for 

trading 

Held to 

maturity 

Available 

for sale 

Derivative 

financial 

instruments 

Note 18 19 20 21 22 

Loans Total 

As at 1.1.2005 79 22 254 6 855 49 2 805 32 042 

Additions 

Change in value recognized in income 

12 6 447 1 430 – 882 8 771 

statement 

Change in value recognized directly in 

1 – 180 6 – 39 – 37 – 249 

equity 

Reversal of impairment, 

– – – 58 0 – – 58 

net – 0 29 – 1 30 

Disposals – 90 – 6 420 – 1 171 – – 669 – 8 350 

As at 31.12.2005 2 22 101 7 091 10 2 982 32 186 


Financial assets include securities loaned for securities lending of 9,112 million francs (2005: 5,776 million 

francs). 

In accordance with hedge accounting requirements, an amount of 3 million francs (2005: less than 1 million 

francs) was posted under derivative financial instruments (positive fair values) (see Note 21, Derivative Financial 

Instruments).


18 Fair value through profit or loss 1 , held for trading 

31 December 2006 Total Term to 

maturity less 

than 1 year 

Term to 

maturity 

1 – 5 years 

Term to 

maturity more 

than 5 years 

No maturity 

CHF m 

Bonds – – – – – 

Shares 0 – – – 0 

Other securities held for trading 0 – – – 0 

Total fair value through profit or loss 1 , held for trading 0 – – – 0 


maturity less 

than 1 year 

Term to 

maturity 

1 – 5 years 

Term to 

maturity more 

than 5 years 

No maturity 

CHF m 

Bonds – – – – – 

Shares 1 – – – 1 

Other securities held for trading 1 – – – 1 

Total fair value through profit or loss 1 , held for trading 2 – – – 2 

1 Fair value changes are taken to the income statement. 

19 Financial assets held to maturity 


maturity less 

than 1 year 

Term to 

maturity 

1 – 5 years 

Term to 

maturity more 

than 5 years 

CHF m 

Bonds 26 325 5 021 15 917 5 387 

Total financial assets held to maturity 26 325 5 021 15 917 5 387 

Measured at fair value 26 194 


maturity less 

than 1 year 

Term to 

maturity 

1 – 5 years 

Term to 

maturity more 

than 5 years 

CHF m 

Bonds 22 101 4 661 13 543 3 897 

Total financial assets held to maturity 22 101 4 661 13 543 3 897 

Measured at fair value 22 236 

Interest income in the reporting year amounted to 528 million francs (2005: 503 million francs).

20 Financial assets available for sale 


maturity less 

than 1 year 


Term to 

maturity 

1 – 5 years 

Term to 

maturity more 

than 5 years 

No maturity 

CHF m 

Bonds 4 151 1 444 2 470 237 – 

Shares 266 – – – 266 

Other 5 1 – – 4 

Total financial assets available for sale 4 422 1 445 2 470 237 270 


maturity less 

than 1 year 

Term to 

maturity 

1 – 5 years 

Term to 

maturity more 

than 5 years 

No maturity 

CHF m 

Bonds 6 952 1 318 4 185 1 449 – 

Shares 135 – – – 135 

Other 4 – 0 – 4 

Total financial assets available for sale 7 091 1 318 4 185 1 449 139 

In 2005, on the basis of the investment and risk policy, a strategic equity position was built up in a clearly 

defined and limited framework. Shares include equities totalling 1 million francs that are measured at cost 

because their fair value cannot be measured reliably. 

Profit from the sale and early repayment of availableforsale financial assets amounted to 5 million francs in 

the reporting year (2005: 11 million francs). 

Interest income in the reporting year amounted to 133 million francs (2005: 174 million francs) in accordance 

with the effective interest method. 

121


CHF m 

21 Derivative financial instruments 


Positive fair 

values 

Contract 

volume 

Negative 

fair values 

Contract 

volume 

Positive fair 

values 

Contract 

volume 

Negative 

fair values 

Note 17 25 17 25 

Cash flow hedges 

Currency 1 24 10 338 – – – – 

Interest 1 208 1 250 0 20 0 57 

Fair value hedges 

Currency 1 118 3 156 0 4 1 36 

Interest 0 – – – – – – – 

Other 

Currency 12 134 69 854 10 92 51 1 027 

Interest 1 149 1 1 478 – – 1 20 

Total derivative financial instruments 16 633 84 3 076 10 116 53 1 140 

Maturities of the derivative financial instruments 

CHF m 


Positive fair 

values 

Contract 

volume 

Negative 

fair values 

Contract 

volume 

Positive fair 

values 

Contract 

volume 

Negative 

fair values 

Note 17 25 17 25 

Cash flow hedges 

Less than 1 year 0 90 3 131 – – – – 

1 to 5 years 2 142 3 248 0 20 0 57 

Over 5 years – – 5 209 – – – – 

Fair value hedges 

Less than 1 year 1 20 2 76 0 4 1 36 

1 to 5 years 0 98 1 80 – – – – 

Over 5 years – – – – – – – – 

Other 

Less than 1 year 1 160 38 1 689 0 8 9 248 

1 to 5 years 12 79 32 585 10 84 42 779 

Over 5 years 0 44 0 58 – – 1 20 

Total derivative financial instruments 16 633 84 3 076 10 116 53 1 140 

Contract 

volume 

Contract 

volume


Replacement cost (positive or negative fair value) 

The replacement cost is the fair value of a derivative financial instrument, i.e. the price one would have to pay 

to enter into a replacement transaction if the counterparty were to default. Positive fair values are subject 

to credit risk and represent the maximum loss that the bank would suffer at the reporting date if the counterparty 

were to default. Negative fair values occur where there is the possibility of entering into replacement 

transactions on more favourable terms. 

Contract volume 

This represents the receivables side of the derivative financial instruments’ underlyings or the notional amounts 

(underlying value). 

Swiss Post buys derivative financial instruments mainly for hedging purposes. Hedge accounting is applied if 

the derivative financial instruments are effective in offsetting changes in fair value or cash flows attributable to 

the hedged risks. 

Derivatives that are not accounted for using hedge accounting are treated as instruments held for trading. 

See also Note 31, “Financial Risk Management” for information on the risk strategy. PostFinance has been using 

hedge accounting since the third quarter of 2005. 

123


22 Loans 


maturity less 

than 1 year 

Term to 

maturity 

1 – 5 years 

Term to 

maturity more 

than 5 years 

No maturity 

CHF m 

Federal Finance Administration 100 100 – – – 

Cantons and municipalities1 1 550 370 420 760 – 

PostBus operators 211 28 99 83 1 

Other2 2 088 112 1 165 811 – 

Total loans 3 949 610 1 684 1 654 1 

1 Loans to cantons and municipalities, plus borrower’s note loans to public entities. 

2 Borrower’s note loans to banks and loans to “Other institutions“ (primarily invested with Mortgage Bond Bank of the Swiss Mortgage Institutions) and 

mortgages previously granted by the Swiss Post pension fund (13 million francs), which were taken over by PostFinance. 


maturity less 

than 1 year 

Term to 

maturity 

1 – 5 years 

Term to 

maturity more 

than 5 years 

No maturity 

CHF m 

Federal Finance Administration 575 475 100 – – 

Cantons and municipalities1 1 185 254 373 558 – 

PostBus operators 200 27 94 79 – 

Other2 3 3 – – – 

1 019 2 504 513 – 

Total loans 

Total Darlehen 2 982 761 1 071 1 150 – 

1 Loans to cantons and municipalities, plus borrower’s note loans to public entities. 

2 Borrower’s note loans to banks and loans to “Other institutions“ (primarily invested with Mortgage Bond Bank of the Swiss Mortgage Institutions) and 

mortgages previously granted by the Swiss Post pension fund (16 million francs), which were taken over by PostFinance. 

Interest income in the reporting year amounted to 63 million francs (2005: 48 million francs).

23 Investments in associates 


The associates are listed in Note 32, Scope of consolidation. 

Change in the balance sheet item relating to associates 

CHF m 

125 

2006 2005 

As at 1.1 35 28 

Additions due to acquisition of associates 1 – 

Additions – 5 

Dividends received – 7 – 5 

Share in net profit (after taxes) 13 7 

As at 31.12 42 35 

of which: Goodwill 11 11 

Income from associates 

2006 2005 

CHF m 

Share in net profit (after taxes) 13 7 

Total net income from associates 13 7 

Changes to associates 

2006 

BVZ Zermatt Tours AG was disbanded in the first half of 2006. 

The following associates were newly included in the consolidation in the context of the acquisition of the 

GHP Group: Emka Card Systems Ltd in Tel Aviv, eSourceOne GmbH in Hallstadt and die I.P. GmbH in Bamberg. 

2005 

A 25 percent stake was acquired in Liechtensteinische Post AG. 

BVZ Zermatt Tours AG is currently in liquidation.


24 Property, plant and equipment 

31 December 2006 

operating Assets under Plant and Furniture, Assets under Total 

property 

construction: equipment, vehicles, other construction: 

operating machinery, assets 

other asset 

CHF m 

Cost 

property 

IT equipment 

types 

As at 1.1 5 993 142 1 213 562 4 7 914 

Additions due to acquisition of subsidiaries 73 – 157 14 – 244 

Additions 3 307 91 66 25 492 

Disposals – 408 – 10 – 115 – 25 – 16 – 574 

Reclassifications 

Disposals arising from reclassifications in 

243 – 243 – – – 0 

accordance with IFRS 5 – 142 – – – 39 – – 181 

Currency translation differences 2 – 4 0 0 6 

As at 31.12 5 764 196 1 350 578 13 7 901 

Cumulative depreciation 

As at 1.1 4 960 – 910 301 – 6 171 

Additions due to acquisition of subsidiaries 13 – 106 8 – 127 

Depreciation and amortization 95 – 91 62 – 248 

Disposals 


– 400 – – 118 – 23 – – 541 


Currency translation differences 0 – 2 0 – 2 

As at 31.12 4 537 – 991 313 – 5 841 

Carrying amount as at 31.12 1 227 196 359 265 13 2 060 

of which leased assets – – 4 10 – 14 

Investment obligations for property, plant and equipment amount to CHF 437 million francs (2005: 261 million 

francs). The increase is due to the REMA project. 

As at 31 December 2006 (and in line with the previous year), none of the items of property, plant and 

equipment had been pledged (2005: zero).



operating Assets under Plant and Furniture, Assets under Total 

property 

construction: equipment, vehicles, other construction: 

operating machinery, assets 

other asset 

CHF m 

Cost 

property 

IT equipment 

types 

As at 1.1 6 023 59 1 174 579 6 7 841 

Additions 7 146 105 62 9 329 

Disposals – 65 – 1 – 80 – 36 0 – 182 



62 – 62 14 – 3 – 11 – 


As at 31.12 5 993 142 1 213 562 4 7 914 

Cumulative depreciation 

As at 1.1 4 943 – 902 308 – 6 153 

Depreciation and amortization 97 – 85 61 – 243 

Disposals – 57 – – 79 – 31 – – 167 



– – 2 – 2 – – 


As at 31.12 4 960 – 910 301 – 6 171 

Carrying amount as at 31.12 1 033 142 303 261 4 1 743 

of which leased assets – – – 10 – 10 

127


25 Intangible assets 

Goodwill 

CHF m 

1 Other intan- Total 2006 Goodwill 

gible assets 

1 Other intan- Total 2005 

gible assets 

Cost 

As at 1.1 89 52 141 122 50 172 

Additions due to acquisition of subsidiaries 52 24 29 – 5 5 

Additions 712 13 84 8 0 8 

Subsequent goodwill adjustments – 0 – – – – 

Elimination of cumulative writedowns3 – – – – 41 – – 41 

Disposals – – 13 – 13 – – 3 – 3 

Currency translation differences 1 1 2 – – – 

As at 31.12 166 77 243 89 52 141 

Cumulative impairment losses and 

amortization 

As at 1.1 2 33 35 41 30 71 

Additions due to acquisition of subsidiaries – 5 5 – – – 

Depreciation and amortization – 8 8 – 7 7 

Impairments4 1 – 1 2 – 2 

Elimination of cumulative writedowns3 – – – – 41 – – 41 

Disposals – – 5 – 5 – – 4 – 4 

Currency translation differences 0 0 – 0 0 – 

As at 31.12 3 41 44 2 33 35 

Carrying amount as at 31.12 163 36 199 87 19 106 

1 Goodwill in relation to fully consolidated companies. The goodwill paid on investments in associates is included in the book value of these equity stakes as carried in the financial statements (see Note 23, Investments in associates). 

As of 31 March 2004, goodwill arising on new acquisitions is no longer systematically amortized but tested for impairment either annually or whenever there are indications of impairment. 

2 Composition: GHP Group, MailSource AG(oneReason AG), MailSource Inc., MDS Media Data Services AG, Swiss Post International Singapore Pte Ltd. (see also Note 33, Changes to the scope of consolidation). 

3 Elimination of cumulative amortization of goodwill due to the application of IFRS 3 “Business Combinations” (goodwill is no longer amortized systematically). 

4 See information below under “Reviewing the recoverable amount of goodwill”. 

Other intangible assets mainly comprise purchased standard software. There are no investment obligations.

Cash-generating units 

Reviewing the recoverable amount of goodwill 


In the event of a new acquisition, goodwill is allocated to identifiable groups of assets known as cashgenerating 

units (CGU) and tested annually for impairment. A CGU is usually a company. 

A CGU’s recoverable amount is based on a calculation of its value in use, based on the strategic financial 

planning, which covers the next three plan years. To calculate value in use, future cash flows are discounted to 

present value in accordance with the strategic financial planning. 

Goodwill relates to the following segments and subsidiaries: 


Total 

Goodwill 

Mail Inter 

national 

New 

businesses 

Other Total 

Goodwill 

Mail Inter 

national 

New 

businesses 1 

CHF m 

GHP Group 27 – – 27 – – – – – – 

MailSource AG (oneReason AG) 5 – – 5 – – – – – – 

MailSource Inc. 36 – – 36 – – – – – – 

MailSource UK Ltd. 17 – – 17 – 17 – – 17 – 

DCL Data Care AG 4 4 – – – 4 4 – – – 

DocumentServices AG 20 20 – – – 20 20 – – – 

Räber Information Management GmbH 3 3 – – – 3 3 – – – 

MDS Media Data Services AG 4 – 4 – – – – – – – 

Swiss Post International Netherlands BV 3 – 3 – – 3 – 3 – – 

Swiss Post Porta a Porta S.p.A. 29 – 29 – – 29 – 29 – – 

Swiss Post SAT Holding SA 

Swiss Post International Singapore 

9 – 9 – – 9 – 9 – – 

Pte Ltd. 4 – 4 – – – – – – 

Other 2 1 1 – – 2 1 1 – – 

Total 163 28 50 85 – 87 28 42 17 – 

1 Reporting has been extended since the previous year. Now includes MailSource Group. 

2 Prioryear amounts have been adjusted due to segment reporting having been extended (see footnote 1 above). 

Other 2 

129


The following parameters were applied per country in determining the recoverable amount of goodwill relating 

to subsidiaries and associates at 31 December 2006, based on the discounted cash flow method. A market 

risk premium of 4.5 percent, and depending on the assessment of the risks, a small cap premium and a debt 

premium of 0 – 2 percent were also used for the calculations. 

Interest rate 1 Tax rate 2 WACC 3 

Switzerland 2.0% 21% 5.1 – 7.4 % 

Italy 3.5% 37% 7.6 % 

United Kingdom 4.1% 30% 8.4 % 

Netherlands 3.3% 30% 8.7 % 

France 3.3% 33% 7.6 % 

Germany 3.3% 38% 7.5 % 

USA 4.4% 40% 8.2 % 

Singapore 3.5% 20% 8.2 % 

1 Yield on 10year government bonds issued by the country in question. 

2 Tax rate in the acquiree’s country. 

3 Weighted average cost of capital. 

On the basis of the impairment tests performed, impairment losses were recognized on two goodwill items 

in the International segment totalling 1 million francs (2005: two items in the International segment totalling 

2 million francs). 

The goodwill paid on investments in associates is included in the book value of these equity stakes as carried in 

the financial statements (see Note 23, Investments in associates).

26 Financial liabilities 


31 December 2006 On demand Callable 1 Up to 1 year 1 – 5 years > 5 years Total 

CHF m Note 

Yellow Accounts 35 251 – – – – 35 251 

Deposito Accounts and investment 

accounts – 11 238 – – – 11 238 

Fixedterm deposits for private customers – – 136 174 22 332 

Fixedterm deposits for business customers – 19 1 524 – – 1 543 

Total customer deposits 35 251 11 257 1 660 174 22 48 364 

Due to banks 9 1 38 24 6 78 

Derivative financial instruments 


21 – – 43 35 6 84 

Finance leases – – 6 16 3 25 

Repurchase transactions – – 8 – – 8 

Other 37 0 511 14 – 562 

Total other financial liabilities 46 1 606 89 15 757 

Total financial liabilities 35 297 11 258 2 266 263 37 49 121 

31 December 2005 On demand Callable 1 Up to 1 year 1 – 5 years > 5 years Total 

CHF m Note 

Yellow Accounts 

Deposito Accounts and investment 

32 440 – – – – 32 440 

accounts – 9 871 – – – 9 871 

Fixedterm deposits for private customers – – 55 168 20 243 

Fixedterm deposits for business customers – 7 1 059 10 – 1 076 

Total customer deposits 32 440 9 878 1 114 178 20 43 630 

Due to banks 1 – 6 12 – 19 

Derivative financial instruments 


21 – – 10 43 0 53 

Finance leases – – 2 7 2 11 

Repurchase transactions – – 339 – – 339 

Other 33 – 6 13 – 52 

Total other financial liabilities 34 – 363 75 2 474 

Total financial liabilities 32 474 9 878 1 477 253 22 44 104 

1 Call deposits for which no notice of withdrawal has been given, recallable provided an agreed notice period is observed. 

131


The portfolio of repurchase transactions is exposed to volatility. If demand for funds is relatively high, shortterm 

refinancing requirements are covered through repurchase transactions. Generally speaking, collateral was 

provided for the full amount of the repurchase transactions. 

In accordance with hedge accounting requirements, an amount of 14 million francs (2005: 1 million francs) 

was posted to derivative financial instruments (negative fair values). 

Interest expense for customer deposits amounted to 255 million francs in the reporting period (2005: 175 million 

francs). 

Present value of obligations under finance leases 


Nominal Discount Present value Nominal Discount Present value 

CHF m 

Up to 1 year 7 0 7 2 0 2 

1 to 5 years 17 – 1 16 8 – 1 7 

Over 5 years 2 0 2 2 0 2 

Total 26 – 1 25 12 – 1 11


27 Provisions 


Other longterm 

benefits 

due to 

employees 

Restructuring Incurred claims Litigation risks Other Total 

CHF m 

As at 1.1 336 155 50 7 14 562 

Additions due to acquisition of subsidiaries 

– – – – 21 23 

Increase 19 5 9 271 1 61 

Present value adjustment 8 3 – – 1 12 

Utilized – 22 – 21 – 9 0 – 3 – 55 

Released – 2 – 7 – 4 – 1 – 3 – 17 

As at 31.12 339 135 46 33 31 586 

of which current 22 33 10 21 7 93 

1 The provisions for litigation risks were increased primarily in connection with allowances for working night shifts and Sundays during holiday periods. 

Swiss Post was thereby responding to various court rulings affecting other companies. 


Other longterm 

benefits 

due to 

employees 

Restructuring Incurred claims Litigation risks Other Total 

CHF m 

As at 1.1 328 179 47 10 9 573 

Additions due to acquisition of subsidiaries – – – – – – 

Increase 31 18 14 2 11 76 

Present value adjustment 9 5 – – – 14 

Utilized – 23 – 28 – 9 – 1 – 5 – 66 

Released – 9 – 19 – 2 – 4 – 1 – 35 

As at 31.12 336 155 50 7 14 562 

of which current 23 41 9 – 7 80 

Other long-term benefits due to employees 

Other longterm employee benefits primarily include anniversary bonuses for long years of service to the 

company and staff vouchers (mainly for retirees). The trend is set out in the following tables. 

133


Trend in “Other long-term benefits due to employees“ 

CHF m 

Loyalty bonuses Staff vouchers 

2006 2005 2006 2005 

As at 1.1 234 233 102 95 

Accrued benefit claims 13 13 2 2 

Benefits paid – 18 – 18 – 4 – 4 

Interest on employee benefit obligations 5 6 3 3 

Income from plan amendments – – 2 – – 

Annual (gains)/losses – 2 2 4 6 

As at 31.12 232 234 107 102 

Expenses booked under staff costs 


2006 2005 2006 2005 

CHF m 

Accrued benefit claims 13 13 2 2 

Interest cost 5 6 3 3 

Recognition of costs arising from plan amendments – – 2 – – 

Recognition of (gains)/losses – 2 2 4 6 

Total expenses for other long-term employee benefits 16 19 9 11 

The following parameters were applied 


Assumptions for the calculation as at: 31.12.2006 31.12.2005 31.12.2006 31.12.2005 

Discount rate 2.25 % 2.25 % 3.00 % 3.00 % 

Annual change in wages 2.00 % 2.00 % – – 

Exercise rate for staff vouchers – – 95.00 % 95.00 % 

Percentage holiday 55.80 % 55.80 % – – 

Voluntary staff turnover 3.67 % 3.79 % 3.67 % 3.79 % 

Average remaining working life in years 12.11 12.22 12.11 12.22

Other Notes 

28 Operating leases 

Swiss Post as lessee 


Minimum obligations under noncancellable lease and rental agreements break down as follows: 

31.12.2006 31.12.2005 

CHF m 

Future obligations under operating leases, due 

within 1 year 123 95 

1 to 5 years 334 265 

more than 5 years 144 148 

Future payment obligations under operating leases 601 508 

Minimum lease payments 131 106 

Conditional lease payments 6 5 

Lease expenses for the year 137 111 

Income from subletting in the past business year 16 11 

Future income from subletting 57 44 

Payments arising from operating lease agreements relate mainly to rent for the post office network’s real 

estate (with an average remaining term of three years), rent for business premises and a ground rent agreement 

with PostLogistics AG (both with an average remaining term of 15 years). Income from subletting relates to 

the post office network’s real estate which, for the purposes of optimization, has been sublet to third parties 

until the lease expires. 

Conditional lease payments occur if the lease is indexlinked. 

135


Swiss Post as lessor 

Income from the rental of Swiss Post’s own properties to third parties amounted to 42 million francs in 

the reporting year (2005: 46 million francs). As at the balance sheet date, Swiss Post had not entered into any 

other significant lease agreements as the lessor. 

31.12.2006 31.12.2005 

CHF m 

Future minimum payments due under lease agreements 

within 1 year 57 54 

1 to 5 years 181 175 

more than 5 years 72 72 

Total 310 301

29 Contingent liabilities 


Contingent liabilities were as follows as at 31 December 2006: 

Guarantees 

Guarantees and guarantee obligations amount to 59 million francs (2005: 8 million francs). The increase was 

based largely on a guarantee declaration by DocumentServices AG to Swisscom IT Services AG. 

Legal cases 

As regards claims or legal cases for which provisions have not been set up, the Executive Management believes 

either that they can be refuted or that they will not have a major impact on the Group’s financial situation or 

operating result. 

30 Related parties and key employees 

Pursuant to IFRS, Swiss Post Group has relations with related parties such as subsidiaries, associates and 

key employees. Likewise, as the owner of Swiss Post, the Swiss Confederation is now deemed to be a related 

party. 

All transactions between Swiss Post and related parties are concluded at market rates. As the owner of 

Swiss Post, the Confederation paid compensation of 80 million francs (2005: 80 million francs) and 187 million 

francs (2005: 188 million francs). 

Transactions between Swiss Post and its subsidiaries were eliminated on consolidation and not included in the 

information contained in these Notes. 

Swiss Post and its subsidiaries carried out the following transactions with related parties that are not part 

of the Group. 

Sales of goods and 

services 

Purchases of goods 

and services 

Receivables and loans 

with related parties 

Liabilities with 

related parties 

CHF m 

2006 2005 2006 2005 31. 12. 2006 31. 12. 2005 31. 12. 2006 31. 12. 2005 

Companies with joint management or significant influence 490 399 245 208 152 603 446 310 

Swiss Confederation 309 250 64 65 104 585 277 75 

Swisscom 139 113 90 78 13 6 18 19 

Swiss Federal Railways 42 36 91 65 35 12 151 216 

RUAG 0 0 0 0 0 0 0 0 

Skyguide 0 0 0 0 0 0 0 0 

Transactions with minority shareholders of subsidiaries 26 25 0 0 2 2 0 – 

Associates 10 8 7 2 0 2 1 0 

Other related parties 0 – 54 84 0 – 10 1 

Compensation paid to key employees 

In the past business year, compensation including fringe benefits of 5.5 million francs (2005: five million 

francs) and pension benefits of around one million francs – as in the previous year – were paid to key 

employees. Those defined as key employees are members of the Board of Directors and Executive Management. 

The performancebased component paid out to members of Executive Management in 2006 was based 

on the 2005 target attainment and amounted to around one million francs (2005: approx. one million francs). 

There are no loan agreements in place with key employees. 

137


31 Financial Risk Management 

Risk types and risk measurement 

Interest rate and balance sheet structure risks 

The term ’interest rate risk’ refers to the potential impact of a change in market interest rates on the fair value 

of assets and liabilities in the balance sheet and on the net interest income shown in the income statement. 

PostFinance’s interestearning operations are a key earnings driver for Swiss Post. As changes in interest 

rates have a direct impact on net interest income, management of the risks associated with such changes is 

considered a priority. The risks are monitored and managed on an ongoing basis by the Asset & Liability 

Management Committee. 

The majority of the customer deposits held by PostFinance do not earn a fixed rate of interest. In order to map 

these for the purposes of asset and liability management, Swiss Post uses the replicating portfolio method 

to compile tranches with various terms to maturity, thereby keeping margin variability as low as possible. The 

interest rates in line with market conditions derived from the replicating portfolios also serve as guidelines 

for the rates extended to customers. 

Funds are invested both in the money market (repo and custody transactions) and in the capital market, where 

consideration is given mainly to fixedincome instruments. Customer deposits, on the other hand, mostly earn 

variable rates of interest. Market risks arising from interestrelated operations are measured and managed 

daily, both at the individual portfolio level and the overall balance sheet level, using the valueatrisk method. 

Rounding off the risk analysis process, sensitivity data are also applied and gap analyses and stress scenarios 

conducted. 

Foreign currency risk 

The term ’foreign currency risk’ refers to the risk that the value of a financial instrument may change as a 

result of fluctuations in exchange rates. 

Market risks arising from foreign exchange transactions are measured and managed daily, both at the 

individual portfolio level and the overall balance sheet level, using the valueatrisk method. Rounding off the 

risk analysis process, stress scenarios are also applied. 

The risks associated with cash flows from foreigncurrency financial assets (coupon payments and nominal 

value repayments) as a result of exchange rate movements are hedged by means of forward exchange contracts 

with matching maturities. 

To hedge against the effect of changes in foreign currency market interest rates and exchange rate changes 

on fair value and income from fixedinterest foreign currency bonds, cross currency interest rate swaps (CCIRS) 

and interest rate swaps (IRS) are used.

Financial instruments by currency 


31 December 2006 CHF EUR USD GBP Other Total 

CHF m 

Assets 

Cash 2 714 92 0 – 0 2 806 



13 627 62 87 11 17 13 804 

customers 81 – – – – 81 

Trade accounts receivable 552 367 19 16 80 1 034 


Financial assets 32 847 1 512 266 43 44 34 712 

Held for trading and derivatives 1 0 14 – 1 16 

Held to maturity 26 042 283 – – – 26 325 

Available for sale 2 857 1 227 252 43 43 4 422 

Loans 3 947 2 – – – 3 949 


Customer deposits 47 754 514 81 8 7 48 364 

Other financial liabilities 546 183 20 1 7 757 

Trade accounts payable 335 330 4 5 82 756 

Other liabilities 765 55 19 9 41 889 

31 December 2005 CHF EUR USD GBP Other Total 

CHF m 

Assets 

Cash 2 210 85 0 0 1 2 296 



11 695 147 71 13 8 11 934 

customers 81 – – – – 81 

Trade accounts receivable 550 263 17 27 61 918 


Financial assets 30 874 1 114 175 14 9 32 186 

Held for trading and derivatives 1 1 10 0 0 12 

Held to maturity 22 012 89 – – – 22 101 

Available for sale 5 880 1 023 165 14 9 7 091 

Loans 2 981 1 – – – 2 982 


Customer deposits 43 129 421 66 8 6 43 630 

Other financial liabilities 418 49 7 – 0 474 

Trade accounts payable 300 277 3 5 85 670 

Other liabilities 661 27 18 8 32 746 

139


Credit risk 

The term ’credit risk’ refers to the risk that a counterparty will no longer be able to fulfil its obligations, thereby 

causing the other party to incur a financial loss. Credit risks increase as counterparties become more concentrated 

in an individual sector or region. Economic developments affecting whole sectors or regions can threaten 

the solvency of an entire group of otherwise unrelated counterparties. 

The credit risks associated with the PostFinance Treasury’s investments in the money and capital markets are 

strictly limited through special investment regulations and prescribed limits. For example, investments are only 

permitted if the debtor has a firstclass credit rating. 

Rating structure of fixed-income financial assets 1 

31.12.2006 31.12.2005 

Share of fixedinterest financial assets in the rating category 

AAA 57 % 56 % 

AA 31 % 34 % 

A 11 % 9 % 

32 Scope of consolidation 


Endowment or 

share capital 

% equity stake 

Acctg. 

31.12.2006 31.12.2005 

method 

Switzerland 

Segment Company Domicile Currency in 000s 

F 1 – 8 Swiss Post Berne CHF 1 300 000 

F 5 Swiss Post International AG Berne CHF 63 300 100* 100* 

F 5 Swiss Post International Logistics AG Basel CHF 1 000 100 100 

F 5 Swiss Post International Management AG Berne CHF 1 000 100 100 

F 2 PostLogistics AG (formerly Setz Gütertransport AG) Dintikon CHF 20 000 100* 100* 

F 1 Epsilon SA Lancy CHF 100 66* 66* 

F 1 Bevo AG Berne CHF 100 50* 50* 

F 2 PostLogistics Innight AG (formerly SwissPost Net AG) Oftringen CHF 1 500 51* 51* 

F 1 DCL Data Care AG Kriens CHF 280 100* 100* 

F 2 yellowworld AG Berne CHF 1 500 100* 100* 

F 7 MailSource AG Zurich CHF 1 000 100* 100* 

F 2 ParcelLogistics AG (disbanded) Oftringen CHF 100 – 100* 

F 5 EDS Export & Distribution Services AG Meilen CHF 150 100 100 

F 2 ExpressPost AG Berne CHF 1 000 100* 100* 

F 2 BTL Logistics AG Berne CHF 2 000 100* 100* 

F 2 Post Transporte AG (formerly PostLogistics AG) (disbanded) Berne CHF 100 – 100* 

F 1 Räber Information Management GmbH Immensee CHF 20 100 100 

F 2 SecurePost AG Berne CHF 4 000 100* 100* 

F 2 Mobility Solutions AG Berne CHF 100 100* 100* 

F 5 Swiss Post SAT Holding AG Berne CHF 2 000 100 100 

F 1 DocumentServices AG Wallisellen CHF 1 600 100* 100* 

F 4 PostBus Switzerland AG Berne CHF 25 000 100* 100* 

F 1 SwissSign AG Zurich CHF 450 100* 100* 

F 5 MDS Media Data Services AG Kriens CHF 200 100 – 

F 2 Mobility Solutions Management AG Berne CHF 100 85* – 

E 1 Direct Mail Company AG Basel CHF 420 50* 50* 

E 1 Direct Mail Logistik AG Basel CHF 100 50* 50* 

E 5 TNT Swiss Post AG Buchs (AG) CHF 1 000 50 50 

E 4 Sensetalbahn AG Laupen CHF 2 890 34* 34* 

E 4 Société des Autotransports du Pied du Jura Vaudois L’Isle CHF 1 200 35* 35* 

E 3 SIC Swiss Interbank Clearing AG Zurich CHF 1 000 25* 25* 

E 1 Scooba GmbH Immensee CHF 20 35 35 

France 

F 5 Swiss Post International (France) SAS Chassieu EUR 300 100 100 

F 4 CarPostal France SARL Dole EUR 60 100* 100* 

F 5 Société d’Affrètement et de Transit S.A.T. SAS Huningue EUR 200 100 100 

F 5 Société de Transports Internationaux S.T.I. SARL Huningue EUR 8 100 100 

F 7 MailSource France SAS Paris EUR 100 100 – 

F 7 GHP Direct France s.a.r.l Levallois Perret EUR 30 77 – 

F 4 CarPostal BourgenBresse SAS BourgenBresse EUR 190 100 – 

F 4 CarPostal Obernai SAS Obernai EUR 40 100 – 

F 4 CarPostal Haguenau SAS Haguenau EUR 170 100 – 

141


Endowment or 

share capital 


Acctg. 

31.12.2006 31.12.2005 

method Segment Company Domicile Currency in 000s 

United Kingdom 

F 5 Swiss Post International (UK) Ltd. Colnbrook GBP 500 100 100 

F 5 GATS UK Ltd. Colnbrook GBP 200 – 1 100 

F 7 MailSource UK Ltd. Richmond GBP 70 – 2 100 

F 7 MailSource UK Ltd. (formerly Swiss Post UK Holding Ltd.) Richmond GBP 6 072 100* 100* 

F 7 GHP Direct Ltd. UK Hampshire GBP 0,2 100 – 

Italy 

F 5 Swiss Post International (Italy) Srl Fiumicino EUR 3 560 60 60 

F 7 MailSource Italia S.p.A. Milan EUR 500 100 100 

F 5 Swiss Post Porta a Porta S.p.A. Milan EUR 2 000 100 100 

USA 

F 5 Swiss Post International (USA) Inc. Jamaica, NY USD 2 000 3 – 100 

F 5 Priority Post Company, Inc. Emigsville, PA USD 3 100 100 

F 7 MailSource Inc. New York USD 45 100 – 

F 7 Swiss Post US Holding Inc. New York USD 10 100 100 * – 

Germany 

F 5 Swiss Post Deutschland Holding GmbH 

Swiss Post Deutschland Holding GmbH (formerly Swiss Post 

Troisdorf EUR 3 000 4 – 100 

F 5 Deutschland GmbH & Co. KG) 

Troisdorf EUR 100 100 100 

F 5 Swiss Post Deutschland Verwaltungs GmbH Troisdorf EUR 25 – 4 100 

F 5 Swiss Post International Germany GmbH & Co. KG Troisdorf EUR 1 526 100 100 

F 5 Swiss Post International Germany Verwaltungs GmbH Troisdorf EUR 25 100 100 

F 7 MailSource Deutschland GmbH Cologne EUR 500 100 100 

F 5 TransEuro GmbH Weil am Rhein EUR 25 100 100 

F 7 Swiss Post GHP Holding GmbH Munich EUR 16 000 100 * – 

F 7 GHP Direct Mail GmbH Bamberg EUR 1 000 100 – 

F 7 systemform Holding GmbH Bamberg EUR 500 100 – 

F 7 GHP Dialog Services GmbH Bamberg EUR 50 100 – 

F 7 GHP Immobilien GmbH & Co. KG Bamberg EUR 200 52 – 

F 7 GHP Immobilien Verwaltungs GmbH Bamberg EUR 25 100 – 

F 7 Cards United GmbH Paderborn EUR 25 51 – 

F 7 GHP Holding GmbH Bamberg EUR 5 000 20 – 

F 7 LS Dialogmarketing Verwaltungs GmbH Dettingen EUR 1 500 100 – 

F 7 Systemform MediaCard GmbH Prien EUR 1 050 100 – 

F 7 LS Dialogmarketing GmbH & Co. KG Dettingen EUR 1 500 100 – 

F 7 GHP Card Systems GmbH Bamberg EUR 100 100 – 

F 7 Fortuna Beteiligungs GmbH Bamberg EUR 50 74 – 

F 7 CF Card Factory GmbH Hessisch Lichtenau EUR 500 51 – 

F 7 Client Vela GmbH Munich EUR 31 50 – 

F 7 Graficon GmbH & Co. KG Lichtenau/ Ansbach EUR 997 100 – 

F 7 Graficon Verwaltungs GmbH Lichtenau/ Ansbach EUR 27 100 – 

F 7 PKS Direktwerbe GmbH Frankfurt am Main EUR 150 100 – 

E 3 Swiss Euro Clearing Bank GmbH Frankfurt am Main EUR 9 200 25* 25* 

E 5 PrimeMail GmbH Hamburg EUR 1 000 50 50 

E 7 I.P. GmbH Bamberg EUR 25 50 – 

E 7 eSourceOne GmbH Hallstadt EUR 25 50 – 

Liechtenstein 

F 4 PostAuto Schweiz Regionalzentrum Liechtenstein Anstalt Vaduz CHF 30 100* 100* 

E 8 Liechtensteinische Post AG Vaduz CHF 5 000 25* 25*


Endowment or 

share capital 


Acctg. 

31.12.2006 31.12.2005 

method Segment Company Domicile Currency in 000s 

Netherlands 

F 5 Swiss Post International Netherlands BV Eindhoven EUR 20 100 100 

Austria 

F 5 Swiss Post International Austria GmbH Biedermannsdorf EUR 51 100 100 

Belgium 

F 5 Swiss Post International Belgium BVBA Brussels EUR 20 100 100 

Sweden 

F 5 Swiss Post International Sweden AB Stockholm SEK 100 100 100 

Singapore 

F 5 Swiss Post International Singapore Pte Ltd. Singapore SGD 400 100 – 

Malaysia 

F 5 Swiss Post International Malaysia Sdn Bhd Selangor MYR 100 65 – 

China 

F 5 Swiss Post International Hong Kong Ltd. Hong Kong HKD 10 60 – 

Czech Republic 

F 7 GHP Direct Mail s.r.o. Kozojedy CZK 3000 100 – 

F 7 Mailstep s.r.o. Prague CZK 120 100 – 

F 7 Mailstep Holding a.s. Prague CZK 1000 100 – 

Hungary 

F 7 DMS Dialogmarketing Kft. Budapest HUF 35 000 100 – 

Israel 

E 7 Emka Card Systems Ltd. Tel Aviv ILS 2100 33 – 

Fietnam 

F 7 GHP Far East Co. Ltd. Ho Chi Minh VND 1 821 446 75 – 

Russia 

F 7 GHP Direct Russia O.O.O. Moscow RBL 5467 100 – 

1 On 1 November 2006, Swiss Post International (UK) Ltd acquired GATS UK Ltd. 

2 On 31 August 2006, MailSource UK Ltd was merged with Swiss Post UK Holding Ltd. Swiss Post UK Holding Ltd was then renamed MailSource UK Ltd. 

3 On 27 December, Priority Post Company Inc. acquired Swiss Post International (USA) Inc. 

4 At the end of 2006, Swiss Post Deutschland GmbH & Co. KG was renamed Swiss Post Deutschland Holding GmbH. The old Swiss Post Deutschland Holding GmbH and Swiss Post Deutschland Verwaltungs GmbH 

were merged with the new Swiss Post Deutschland Holding GmbH. 

Key 

* = equity stake is held by the parent, Swiss Post 

Erfassung 

F = fully consolidated 

E = accounted for under the equity method 

Segment 

1 = Mail 

2 = Logistics 

3 = Financial Services 

4 = Passenger Transport 

5 = International 

6 = Post Office Network 

7 = New businesses 

8 = Other 

143


33 Changes to the scope of consolidation 

Investments in the reporting year 

In February, Swiss Post acquired Forrest Solutions Inc. in the USA and subsequently renamed it MailSource Inc. 

The acquisition is based on a payment of 27 million US dollars, plus a number of deferred payments towards 

the purchase price calculated on the basis of the business plan that have already been accounted for in 

the 2006 financial statements. The amount of these payments will depend on the company s performance. 

The acquisition has resulted in a positive effect on Group sales of around 62 million francs (see the following 

page under Assets and liabilities arising from acquisitions). 

On 21 February 2006, Swiss Post acquired 100 percent of the shares in oneReason AG in Kloten. Immediately 

after the acquisition, the company was merged with MailSource AG. Both the purchase price and the effect on 

the results of operations are insignificant for the Group. 

On 1 March 2006, Swiss Post International AG acquired MDS AG, based in Kriens. Both the purchase price 

and the effect on the results of operations are insignificant for the Group. 

On 1 June 2006, a 100 percent interest was acquired in SPI Singapore. As part of the transaction, two 

holdings were also purchased in SPI Malaysia in Kuala Lumpur (65 percent) and SPI Hong Kong (60 percent). 

Both the purchase price and the effect on the results of operations are insignificant for the Group. 

On 1 July 2006, Swiss Post International (SPI) acquired Mobile Imaging GmbH in Gottlieben in the canton 

of Thurgau and at the same time merged it with SPI Management AG. By making this acquisition, SPI has 

extended its offering of online postcards. It is now offering a platform that can be easily and quickly integrated 

into companies and organizations own websites. Customers will thus be able to send online postcards from 

a number of websites, which SPI will then print and deliver to the intended recipients by post. Both the 

purchase price and the effect on the results of operations are insignificant for the Group. 

On 1 September 2006, Swiss Post acquired a majority stake in the GHP Group, which is domiciled in Bamberg, 

Germany. 

The acquisition is based on a payment of 3 million euros, plus a number of deferred payments towards the 

purchase price calculated on the basis of the business plan that have already been accounted for in the 2006 

financial statements. The amount of these payments will depend on the performance of the GHP Group, 

which has contributed around 125 million francs in revenue since joining Swiss Post s scope of consolidation 

(1.9.2006). In 2006, the acquiree generated annual revenues of roughly 350 million francs. 

On 1 November 2006, Swiss Post International (UK) Ltd. acquired GATS UK Ltd. 

On 27 December 2006, Priority Post Inc absorbed Swiss Post International (USA) Inc. 

At the end of 2006, Swiss Post Deutschland GmbH & Co. KG was renamed Swiss Post Deutschland Holding 

GmbH. The old Swiss Post Deutschland Holding GmbH and Swiss Post Deutschland Verwaltungs GmbH were 

merged with the new Swiss Post Deutschland Holding GmbH. 

Investments in 2005 

Swiss Post acquired the following investments in 2005. 

On 23 June 2005, Swiss Post exercised a call option to acquire a 25 percent stake in Liechtensteinische Post 

AG. The company is accounted for as an associate. 

On 1 July 2005, Swiss Post acquired 100 percent of the shares in SwissSign AG, based in Zurich. The company 

is active mainly in developing a legally compliant encoding technology and does not yet generate a significant 

amount of revenue.


Assets and liabilities arising from acquisitions 

The following assets and liabilities were newly consolidated following the acquisition of subsidiaries, based on 

provisional amounts: 

31 December 2006 Fair values Fair values Other 

Total 

Acquired 

MailSource Inc. GHP Group acquisitions fair values carrying 

amounts before 

takeover1 CHF m 

Cash 0 0 0 0 0 

Receivables 5 136 7 148 59 

Inventories – 16 – 16 17 

Property, plant and equipment, intangible assets and investments 1 168 1 170 164 

Other financial liabilities – – 122 0 – 122 – 73 

Trade accounts payable – – 75 – 3 – 78 – 23 

Provisions and other liabilities – – 121 – 4 – 125 – 87 

Fair value of net assets 6 2 1 9 57 

Goodwill 36 22 13 71 

Acquisition costs 42 24 14 80 

Cash and cash equivalents acquired – 1 – 10 – 1 – 12 

Purchase price payments falling due at a later date (earnouts) – 15 – 17 – 1 – 33 

Payment of liabilities from acquisitions in previous years – – 0 0 

Net cash outflow from acquisitions 26 – 3 12 35 

1 In accordance with IFRS. 

31 December 2005 Fair value Acquired 

carrying 

amounts before 

takeover1 CHF m 

Cash 0 0 

Receivables 0 0 

Property, plant and equipment, intangible assets and investments 5 0 

Other financial liabilities – – 


Provisions and other liabilities – 1 0 

Fair value of net assets 4 0 

Goodwill 1 

Acquisition costs 5 

Cash and cash equivalents acquired 0 

Purchase price payments falling due at a later date (earnouts) – 5 

Payment of liabilities from acquisitions in previous years 132 Net cash outflow from acquisitions 13 

1 In accordance with IFRS. 

2 Composition: SAT Group, Räber Information Management GmbH, MailSource UK Ltd, BTL Logistics AG. 

145


Companies founded, renamed and sold in the reporting year 

Companies founded 

Swiss Post US Holding Inc., based in New York, was founded in the first quarter of 2006 for the purpose of 

acquiring Forrest Solutions Inc. (subsequently renamed MailSource Inc.). 

On 31 March 2006, Mobility Solutions Management AG was established to provide fleet management services 

for roadbased vehicles (including car sharing). 

MailSource is extending its reach. The Swiss Post subsidiary has established a new company in France (Mail 

Source France SAS). In the second half of the year, this company will take over the customers and employees 

of Euro Postal Services SARL (EPS), which, like MailSource, specializes in internal mail services. As a result of 

this takeover, MailSource is now represented in seven countries. 

Swiss Post GHP Holding GmbH, based in Munich, was established in the third quarter for the purpose of 

acquiring the GHP Group. 

Three companies were established in France in 2006, namely CarPostal BourgenBresse SAS, CarPostal 

Obernai SAS and CarPostal Haguenau SAS. The aim of developing the business in this neighbouring country is 

to add further, profitable markets to the portfolio and thus generate an additional contribution to profit. 

On 20 December 2006, Swiss Post Net AG in Oftringen was renamed PostLogistics Innight AG. 

Companies founded in 2005 

In 2004, Swiss Post International AG in Sweden reserved a company name. The company was renamed Swiss 

Post International Sweden AB and since January 2005 has been fully consolidated. 

The following companies in the Logistics Services segment were renamed on 1 December 2005: 

PostLogistics AG became Post Transporte AG and Setz Gütertransport AG became PostLogisitcs AG. 

In 2005, Société d Affrètement et de Transit S.A.T. changed its legal form from a Société anonyme (SA) to 

a Société par actions simplifiée (SAS). 

In December, Swiss Post Porta a Porta S.p.A. absorbed SDL Servizi Distribuzione e Logistica Srl by means of 

a merger taking retroactive effect as of 1 January 2005.

34 Non-current assets held for sale 


“Noncurrent assets held for sale” are no longer systematically amortized and will probably be sold within 

one year. 

Operating Other proper- Total 

property 

ty, plant and 

equipment 

CHF m 

As at 1.1.2006 11 1 12 

Additions arising from reclassifications in accordance with IFRS 5 11 4 15 

Disposals – 11 – 4 – 15 

As at 31.12.2006 11 1 12 

Operating Other proper- Total 

property 

ty, plant and 

equipment 

CHF m 

As at 1.1.2005 – – – 

Additions arising from reclassifications in accordance with IFRS 5 11 5 16 

Disposals – – 4 – 4 

As at 31.12.2005 11 1 12 

35 Key exchange rates 

The following exchange rates are applied in translating the financial statements of foreign subsidiaries into 

Swiss francs: 

Closing rate as at Average rate for the period ending 

31.12.2006 31.12.2005 31.12.2006 31.12.2005 

Unit 

1 euro EUR 1.61 1.56 1.57 1.55 

1 US dollar USD 1.22 1.31 1.25 1.25 

1 pound Sterling GBP 2.40 2.26 2.31 2.26 

36 Events after the balance sheet date 

Prior to the approval of the 2006 financial statements by the Board of Directors on 21 March 2007, no events 

came to light which either would have resulted in changes to the carrying amount of the Group s assets and 

liabilities or would have to be disclosed in this section of the Report. 

Acquisitions of subsidiaries between 1 January and 21 March 2007 

On 2 January 2007, Swiss Post International AG acquired all shares in FM Verzollungs AG in Basel. The company 

handles import and export customs clearance for crossborder shipments of goods on behalf of forwarding 

companies and operates public customs warehouses It also specializes in customs clearance for railbased 

transport. 

147


Report of the Group Auditors to 

the Federal Council 

Swiss Post, Berne (Swiss Post Group) 

As group auditors, we have audited the consolidated financial statements (balance sheet, income statement, 

statement of changes in equity, cash flow statement and notes) of Swiss Post Group presented on pages 94 to 

147 of the Swiss Post financial report for the year ended 31 December 2006. 

These consolidated financial statements are the responsibility of the board of directors. Our responsibility is to 

express an opinion on these consolidated financial statements based on our audit. We confirm that we meet 

the legal requirements concerning professional qualification and independence. 

Our audit was conducted in accordance with Swiss Auditing Standards and with the International Standards 

on Auditing (ISA), which require that an audit be planned and performed to obtain reasonable assurance 

about whether the consolidated financial statements are free of material misstatement. We have examined on 

a test basis evidence supporting the amounts and disclosures in the consolidated financial statements. 

We have also assessed the accounting principles used, significant estimates made and the overall consolidated 

financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 

In our opinion, the consolidated financial statements give a true and fair view of the financial position, 

the results of operations and the cash flows in accordance with the International Financial Reporting Standards 

(IFRS) and comply with Postal Organization Act. 

We recommend that the consolidated financial statements submitted to you be approved. 

Without qualifying our opinion we refer to note 2 “Accounting principles“ in the notes to the consolidated 

financial statements. In view of the thin capitalization, the Swiss Post’s status as a going concern is dependent 

upon the assumption, that – in accordance with the state guarantee the required funds will be provided 

KPMG Ltd 

Christoph Andenmatten 

Swiss Certified Accountant 

Auditor in Charge 

GümligenBerne, 21 March 2007 

Stefan Andres 

Swiss Certified Accountant

Annual Report | Financial Report | Financial statements of Swiss Post 

Financial statements of Swiss Post 

Income statement 

CHF m 

Net sales from logistics services 

Income from financial services 

Other operating income 

Total operating income 6 718 6 901 

Staff costs 

Resale merchandise and service expenses 

Expenses for financial services 

Other operating expenses 

Depreciation and amortization 

Total operating expenses – 6 075 – 6 118 

Operating result 643 783 

Financial income 

Financial expenses 


Income taxes 0 – 

Profit for the year 604 784 

2006 

4 890 

1 576 

252 

– 3 367 

– 1 120 

– 373 

– 999 

– 216 

25 

– 64 

149 

2005 

5 146 

1 514 

241 

– 3 440 

– 1 195 

– 263 

– 990 

– 230 

21 

– 20

150 Annual Report | Financial Report | Financial statements of Swiss Post 

Balance sheet 

CHF m 

31.12.2006 31.12.2005 

Assets 

Cash 2 797 2 293 

Receivables due from banks 13 744 11 890 

Interestbearing amounts due from customers 81 81 

Trade accounts receivable 936 908 

Other receivables 701 737 

Inventories 54 54 

Noncurrent assets held for sale 12 12 

Financial assets 34 784 32 001 

Investments 187 150 

Property, plant and equipment 1 732 1 671 

Intangible assets 7 7 



Customer deposits 48 377 43 642 

Other financial liabilities 614 435 



Provisions 576 575 


Endowment capital 1 300 1 300 

Free reserves 2 171 1 736 


Total equity 4 075 3 820 

Total equity and liabilities 55 035 49 804


Notes to the annual financial statements of 



The financial statements of Swiss Post were prepared in accordance with generally accepted commercial 

principles. Furthermore, the accounting records and financial statements and the proposed appropriation of 

net profit for the year comply with the Postal Organization Act. 


2a) General information 

The financial statements of Swiss Post are based on the financial statements of the legally dependent Accounting 

Units, which are prepared using consistent, generally accepted principles. Internal transactions among 

the Accounting Units are eliminated. Swiss Post comprises the following Accounting Units: PostMail, Logistics, 

Mobility Solutions, Post Offices & Sales, PostFinance, PostBus, Swiss Post International, Real Estate and Central 

Services (Stamps & Philately, Corporate Purchasing, Information Technology Services, Service House and the 

management units of Swiss Post). 

The subsidiaries controlled by the parent are not consolidated but carried in the balance sheet under “Investments” 

at cost minus any necessary writedowns. 

2b) Differences in accounting policies compared with the IFRS consolidated financial statements 

The financial statements of Swiss Post were prepared in accordance with the accounting policies used in drawing 

up the consolidated financial statements, with the following exceptions: 

Financial assets 

Financial assets with a fixed maturity classified as “Available for sale” are measured at amortized cost. Interest 

raterelated fluctuations in fair value (volatility) do not therefore affect the carrying amount of the financial 

assets and the reported equity (no fair value reserve). Loans granted by the parent to subsidiaries are carried in 

the balance sheet at amortized cost less any necessary writedowns. Writedowns are recognized under Financial 

expenses. 

Provisions for insurance risks 

In accordance with the principle of selfinsurance, provisions for insurance risks cover future claims that have 

not yet been incurred. Large claims can therefore be settled via the insurance provisions. 

Employee benefits 

Pension expenses reported for Swiss Post correspond to the employer contributions transferred to the Swiss 

Post pension fund. 

Long-term benefits due to employees and retirees 

The costs of longterm benefits due to employees and retirees such as loyalty bonuses and staff vouchers 

are recognized when they are incurred; provisions are not made systematically over the years of service of 

employees. 

3 Contingent liabilities 

As at 31 December 2006, there are guarantees amounting to 11 million francs (2005: 1 million francs). 

151

152 Annual Report | Financial Report | Financial statements of Swiss Post 

4 Assets pledged as security for own obligations 

As at 31 December 2006, assets with carrying amounts totalling some 9,112 million francs (2005: 5,776 million 

francs) were pledged as collateral for own obligations (bonds). 

5 Lease obligations 

Lease obligations not recognized in the balance sheet (operating leases) total 527 million francs at 31 December 

2006 (2005: 427 million francs). 

6 Fire insurance values of property, plant and equipment 

The fire insurance values of property, plant and equipment total 5,458 million francs at 31 December 2006 

(2005: 5,546 million francs). 

7 Investments 

Please see note 32, Scope of consolidation, in the consolidated financial statements. Investments in 

subsidiaries held directly by the parent are carried in the balance sheet at cost less any necessary writedowns. 

Writedowns are recognized under Financial expenses. 

8 Amounts due to employee benefit funds 

The amounts due to the Swiss Post pension fund total 12 million francs at 31 December 2006 (2005: 3 mil 

lion francs). 

9 Equity 

The Swiss Confederation has provided Swiss Post with interestfree endowment capital of 1,300 million francs. 

Proposal of the Board of Directors concerning 

appropriation of net retained profit 

According to Article 12 of the Postal Organization Act (POA), the appropriation of profit should be determined 

primarily by the requirements of the business. The key issues are an appropriate capital structure and the 

financing of investments. Any profit remaining after transfers to reserves is handed over to the Swiss Confederation. 

Given the insufficient equity base of Swiss Post Group, and based on Article 12 of the POA, the Board 

of Directors of Swiss Post therefore proposes to the Swiss Federal Council that Swiss Post’s profit of 604 million 

francs be allocated as follows: 

– 350 million francs to be deposited in the Swiss Post pension fund as the employer’s reserve and 

– 254 million francs to be allocated to Swiss Post reserves.


Report of the Statutory Auditors to 

the Federal Council 

Swiss Post, Berne 

As statutory auditors, we have audited the accounting records and the financial statements (balance sheet, 

income statement and notes) of Swiss Post presented on pages 149 to 152 of the Swiss Post financial report 

for the year ended 31. December 2006. 

These financial statements are the responsibility of the board of directors. Our responsibility is to express 

an opinion on these financial statements based on our audit. We confirm that we meet the legal requirements 

concerning professional qualification and independence. 

Our audit was conducted in accordance with Swiss Auditing Standards, which require that an audit be 

planned and performed to obtain reasonable assurance about whether the financial statements are free of 

material misstatement. We have examined on a test basis evidence supporting the amounts and disclosures in 

the financial statements. We have also assessed the accounting principles used, significant estimates made 

and the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 

opinion. 

In our opinion, the accounting records and financial statements and the proposed appropriation of available 

earnings comply with the Postal Organization Act. 

We recommend that the financial statements submitted to you be approved. 

KPMG Ltd 

Christoph Andenmatten 


Auditor in Charge 

GümligenBerne, 21 March 2007 

Stefan Andres 


153

154 Annual Report | Financial Report | Additional information about PostFinance 

Additional information about PostFinance 

The following financial statements of PostFinance were prepared in accordance with the principles of IFRS segment 

reporting and correspond to the Financial Services segment. In contrast to the presentation in Note 6, Income 

from financial services in the Nots to the consolidated financal statements, Groupinternal transactions with 

other segments (including services purchased by the Post Office Network and Mail) have not been eliminated. 

PostFinance – income statement 

2006 2005 

CHF m 

Interest income 

Interest income on amounts due from banks 45 20 

Interest income on reverserepurchase transactions 

Interest income on interestbearing amounts due from customers 

Interest and dividend income on FVTPL1 104 

48 

9 

9 

: held for trading 

0 

– 

Interest and dividend income on financial assets 

Interest expense 

724 

734 

Interest expense for customer deposits 

– 274 

– 183 

Interest expense for amounts due to banks 

– 6 

0 

Interest expense on repurchase transactions 

– 2 

– 2 

Net interest income 

Change in writedowns of financial assets 

Losses on payment transactions 

Net interest income after writedowns 591 649 

Commission income on lending, securities and investment business 

69 

40 

Commission income on other services 

18 

18 

Income from services 515 525 

Commission and services expenses – 322 – 294 

Net services and commission income 280 289 

Net trading income 92 80 

Realized gains and losses on financial assets 5 11 

Other operating income – 5 1 

Total operating income 963 1 030 

Staff costs – 295 – 277 

General overheads – 397 – 412 

Depreciation and amortization – 26 – 29 

Total operating expenses – 718 – 718 

Operating profit 3 245 312 

Income from associates 2 2 

Income from intraGroup financing 5 5 

Profit 252 319 


2 Incl. reversal of impairment for financial assets. 

3 Corresponds to the operating result for the financial services segment. 

600 

– 9 

0 

626 

29 2 

– 6

PostFinance – balance sheet 

CHF m 

Annual Report | Financial Report | Additional information about PostFinance 

155 

31. 12. 2006 31. 12. 2005 

Assets 

Cash and cash equivalents 2 797 2 292 

Receivables due from banks 13 745 11 890 

Interestbearing amounts due from customers 81 81 

Securities held for trading – 1 

Derivative financial instruments 16 10 

Financial assets 34 476 31 964 

Investments 14 14 

Property, plant and equipment 47 57 

Deferred income 480 458 

Other assets 463 489 



Due to banks 496 340 

Due to customers on Deposito and investment accounts 13 113 11 190 

Other amounts due (to customers) 37 520 34 565 

Derivative financial instruments 84 53 

Deferred income 30 27 

Provisions 5 4 



Allocated equity 1 500 500 

Fair value reserves 26 183 

Hedging reserves 1 0 


Total equity 779 1 002 

Total equity and liabilities 52 119 47 256 

1 As of 1 January 2003, PostFinance has 500 million francs in equity available to cover fluctuations in the fair value of availableforsale financial assets.

156 Annual Report | Financial Report | Notes 

Contents 

GRI index 158 

Strategy and analysis 158 

Organization profile 158 

Report parameters 158 

Good management, obligations and commitment 159 

Economic performance 159 

Ecological performance 159 

Social performance: working practice and job quality 160 

Social performance: human rights 160 

Social performance: society 160 

Social performance: product responsibility 160 

Publisher and contacts 162

GRI index 

Annual Report | Financial Report | Notes 

157

158 Annual Report | Financial Report | Notes | GRI index 

Index 

Swiss Post uses version G3 of the Global Reporting Initiative (GRI) guideline on sustainability reporting as a 

reference (www.globalreporting.org). 

The individual report elements are numbered in accordance with the GRI. The corresponding page in the 

report on which the information can be found is listed for each report element. If the information is in 

an Internet link, the corresponding link number is listed in the last column. All links are summarized under 

www.swisspost.ch/ar2006links. 

The GRI index below comprises all the GRI core indicators. The GRI additional indicators are marked with a *. 

Additional indicators were included in the list if information about the indicator is communicated in the report 

on an Internet link. 

GRI no. Report elements Page Link 

1.1 

Strategy and analysis 

Position of Board/Board of Directors on entrepreneurial sustainability 6 

1.2 Presentation of the main risks and opportunities 7, 76ff 21 

2.1 

Organization profile 

Name of the reporting organization 1 

2.2 Main brands, products and services 4 4 

2.3 Operating structure of organization 4, 75, 79 

2.4 Head office location Back cover 3 

2.5 International locations 141ff 

2.6 Ownership structure and legal status 74ff, 82ff 3 

2.7 Markets covered 4, 106ff 4, 5 

2.8 Scope of the reporting organization 5 99 

2.9 Significant decisions in reporting period 14, 15, 144 8 

2.10 Awards received 37ff 

3.1 

Report parameters 

Reporting period 81 99 

3.2 Date of last report 99 

3.3 Reporting cycle 99 

3.4 Contact person and address 162 7 

3.5 Process description for obtaining report content 99 

3.6 Limits to validity of reporting 99 

3.7 Definition of area of validity or delimitation of the report 106 99 

3.8 Bases of reporting of associates and investments 101 

3.9 Measurement process and calculation principles 20, 99 

3.10 Restatements for reporting period 

3.11 Significant methodrelated changes in reporting 49 99 

3.12 Table of standardcompliant disclosure (GRI index) 158 

3.13 External auditing of the report 153 99

Annual Report | Financial Report | Notes | GRI index 


Good management, obligations and commitment 

4.1 Governance structures 68ff, 74ff 3 

4.2 Independence of Chairman of the Board 68ff 

4.3 Independent/nonexecutive members of the Board of Directors 68ff 

4.4 Mechanisms for considering shareholder and employee proposals 10, 14, 26 

4.5 Linking remuneration system to company performance 45, 77, 86 

4.6 Processes for avoiding conflicts of interest 76 

4.7 System for determining qualification of members of the Board of Directors 75ff 3 

4.8 Company values and guiding principles 3, 6, bookmark 13, 15, 16 

4.9 Processes for monitoring company performance 48ff, 76 1, 2, 21, 23 

4.10 Process for evaluating performance of the Board of Directors 

4.11 Consideration of the prudence principle 46 12, 22 

4.12 Commitment to external principles and initiatives 46, 55 11, 12 

4.13 Memberships in international/national interest groups 46 11, 12, 99 

4.14 Relevant stakeholder groups 6, 7 

4.15 Basis for determining relevant stakeholder groups 

4.16 Consultation of stakeholder groups 44ff, 66, 76 18 

4.17 Concerns of stakeholder groups 49ff 18, 99, 26, 14, 27 

Economic performance 

EC0 Disclosure of management approach 13ff, 82 6, 2, 5 

EC1 Generation and distribution of added value 5, 66ff 99 

EC2 Financial implications of climate change 12, 99 

EC3 Cover of pension fund obligations 15, 64, 112 99 

EC4 State subsidies 67, 74ff, 107 3, 7 

EC5* Minimum salary 5, 63, 67 10, 14, 26, 27, 99 

EC6 Consideration of local suppliers 57ff 

EC7 Share of local representatives in management 79 

EC8 Investment in infrastructure and services with a general benefit 28, 56 5, 6, 8 

Ecological performance 

EN0 Disclosure of management approach 10, 11, 49 11, 12, 18, 19, 20, 22 

EN1 Materials consumption 47ff 99 

EN2 Use of recyclable materials 99 

EN3 Direct energy consumption by primary energy source 46ff 99 

EN4 Indirect energy consumption by primary energy source 46ff 99 

EN5* Energy savings by boosting efficiency 45ff 

EN6* Initiatives for increasing energy efficiency of products/services 47 99 

EN7* Initiatives to reduce indirect energy consumption 54ff 99 

EN8 Water consumption 99 

EN11 Operational ground space in protected areas 

EN12 Impact of ground use on protected areas 

EN16 Greenhouse gas emissions 99 

EN17 Other relevant indirect greenhouse gas emissions 99 

EN18* Initiative to reduce greenhouse gas emissions 11, 47, 55 11, 12, 19 

EN19 Emissions of ozonereducing substances 99 

EN20 NO, SO and other airpolluting emissions 99 

EN21 Total wastewater outflow 

EN22 Total waste 

EN23 Other significant pollutants 

EN26 Management of environmental impact of products and services 46 11, 20, 22 

EN27 Share of products reintegrated into the materials cycle at the end of their useful lives 

EN28 Sanctions due to violation of statutory regulations 

EN29* Environmental impact of transport logistics 54 99 

159

160 Annual Report | Financial Report | Notes | GRI index 


Social performance: working practice and job quality 

LA0 Disclosure of management approach 42ff, 52, 62 14, 15, 16, 17, 26, 27 

LA1 Breakdown of total staff 5, 42, 46 25, 99 

LA2 Fluctuation rate by age group and gender 5, 46 99 

LA3* Minimum employer contributions for fulltime employees in relation to parttime employees 26, 27 

LA4 Percentage of staff employed under a collective employment contract 62, 67 99 

LA5 Involvement of employees in important operational changes 50ff, 76 3, 14, 26, 27 

LA7 Key figures on safety and health 52 99 

LA8 Programmes and initiatives aimed at preventing contagious diseases 49 

LA9* Safety and healthrelated issues covered by agreements with trade unions 14, 26, 27 

LA10 Training hours by employee category 

LA11 Possibilities for basic and further training, including for retirees 43ff, 51 24, 99 

LA12* Regular employee appraisals 14, 26, 27 

LA13 Key figures on diversity 5, 64ff 15, 99 

LA14 Average remuneration menwomen 64ff 14, 26, 27 

HR0 

Social performance: human rights 

Disclosure of management approach 

Investment agreemen (investments, takeovers) with human rights clause(s) or selection according to 

13 

HR1 humanrights criteria 

HR2 Suppliers examined on the basis of humanrights criteria 11, 65ff 13, 29 

HR4 Incidents involving any type of discrimination 

HR5 Guarantee of freedom of association and collective negotiations in highrisk projects 13 

HR6 Prohibition of child labour 13 

HR7 Prohibition of forced labour 13 

SO0 

Social performance: society 

Disclosure of management approach 5, 6, 7, 8 

SO1 Management of the social implications of business activity 56ff 

SO2 Risk analysis to prevent corruption 64ff 

SO3 Training to prevent corruption 64ff 

SO4 Measures to be taken in the event of corruption 

SO5 Participation in sociopolitical trends and lobbying 11, 14 7 

SO6* Payments to political parties and institutions 99 

SO8* Sanctions due to violation of statutory regulations 65ff 

PR0 

Social performance: product responsibility 

Disclosure of management approach 23 

PR1 Processes aimed at improving safety and healthrelated aspects of products and services 23 

PR3 Processes for product and servicerelated information and labelling 

PR5* Customer satisfaction and measurement procedures 6, 19, 21, 23, 25, 27, 29, 30 99 

PR6 Processes and programmes for marketing communication that conforms to the law and regulations 

PR9 Sanctions due to violation of statutory regulations

162 Annual Report | Financial Report | Notes | Publisher and contacts 

Publisher and contacts 

The 2006 Swiss Post Annual Report is available in German, French, Italian and English. 

The printed German version is binding. We provide additional indepth information 

on the 2006 Annual Report on the Internet. Readers can access this information 

via the numbered links in the report. These links are listed online at 

www.swisspost.ch/ar2006links with the corresponding number. Uptodate information 

about Swiss Post is also available online at www.swisspost.ch. 

The 2006 Swiss Post Annual Report contains forwardlooking statements. These are 

based on assumptions and estimates and on information available at the time of going 

to press. Unforeseeable events may result in actual trends and results deviating from 

these statements. Swiss Post is not obliged to update the statements contained in the 

Annual Report. 

Additional printed copies of the Annual Report are available from the address below or 

can be ordered online. Employees of Swiss Post may order additional copies through 

the usual channels. 

Point of contact 


Corporate Communication 

Viktoriastrasse 21 

P.O. Box 

3030 Berne 

Switzerland 

Tel. +41 (0)31 338 13 07 

Fax +41 (0)31 338 13 11 

Email: presse@post.ch 

Publishing details 

Published by: 


Corporate Communication 


P.O. Box 

3030 Berne 

Switzerland 

Tel. +41 (0)31 338 11 11 

Fax +41 (0)31 338 13 11 

www.swisspost.ch 

Design 

Raphael Wild, Corporate 

Communication Swiss Post, Berne 

Andreas Sturm, Ellipson AG, Basel 

Text 

Marcel Suter, Klarkom GmbH, Berne 

Andreas Sturm, Ellipson AG, Basel 

Finances Post, Berne 

Photos 

Julian Salinas, Basel 

Layout 

Trimedia.Comfactory, Basel 

Proof-reading and translations 

Language Services Swiss Post, Berne 

Typesetting 

grafikwerkstatt upart, Berne 

Litho 

Marti Media, Hinterkappelen 

Printer 

Fischerprint, Münsingen 

Bookbinder 

Schumacher, Schmitten 

ISSN number 16619528

Geschäftsbericht 2006 



P.O. Box 

3030 Berne 

Switzerland 

www.swisspost.ch 

071.44 en (218 804) 04.2007 UK

Service-oriented - Die Schweizerische Post

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