Swiss Post announced today it will focus on its four core businesses in Switzerland and limitits international activities under a new strategy for the next three years.
In the 2010-2013 period Swiss Post will focus even more heavily on four areas of activity:communications, logistics, retail finance and public passenger transport. It intends to consolidateits leading position in Switzerland in these four markets and achieve industry-standard returns foreach of them.
The international strategy provides for gradual, risk-aware growth in order to safeguard thebusiness in Switzerland from foreign competition, and the organisation will thus focus itsactivities mainly on the needs of Swiss customers abroad, providing them with access to the globalnetwork.
Advisory board president Peter Hasler told a media briefing that under the recently agreed newpostal law Swiss Post would change from a public organisation into a state-owned company, and thePostFinance financial services division would become a subsidiary company. This would give thepostal group more freedom of action.
The remaining postal monopoly on letters up to 50g was not a decisive issue, since the companygenerates 80% of revenues in competitive markets and is well-prepared for a full market opening inthe future, he commented. Internationally, Swiss Post would focus on defensive expansion and nichemarkets. “We will not risk any adventures,” he said.
Managing director Jürg Bucher added that Swiss Post aimed to remain the number one in thenational courier, express and parcel market and would offer additional logistics services forfreight transportation and warehousing. Internationally, it would cooperate with companies andnetworks, and aimed to generate 15% of revenues and 11% of profits from internationalactivities.
The new corporate strategy, which has been approved by the board of directors, is derived fromthe Swiss Federal Council’s strategic objectives for 2010-2013. These provide for the safeguardingof basic services for postal and payment transactions in all regions of the country and includetargets for profitability, the increase of enterprise value and for a progressive and sociallyresponsible HR policy.
The aim of Swiss Post therefore is to offer first-rate services at fair market prices, achievehigh levels of customer satisfaction, provide a high-quality basic service and continue to be anattractive, socially responsible employer in the future.
Financially, Swiss Post will aim to increase profits by a double-digit million franc sum in thenext three years, which would be equivalent to approximately 15% of anticipated total turnover. Thepostal operator is expected to make between 700 and 800 million francs in profit annually in thefuture in order to remain an attractive and socially responsible employer, keep pension fundshealthy, invest in the development of the company, strengthen equity and pay a profit contributionto the state, and be able to fulfil its tax obligations in the future.
In 2009, the Swiss postal group saw its net profit drop by 12% to CHF 728 million (€510million). The operating profit declined 11.2% to CHF 721 million (€505 million), and the operatingprofit margin fell from 9% to 8.3%. Revenues fell by 3% to CHF 8.7 billion (€6.1 billion), with a4.7% drop in addressed letters. In 2010, however, it has continued to benefit from higher profitsin financial services and logistics. Over the first nine months, the group profit rose by 34% toCHF 741 million while EBIT rose by 33% to CHF 746 million. Operating revenues went up by 2.9% toCHF 6,383 million and operating expenses were reduced slightly.
In terms of protecting the environment, Swiss Post has set itself a reduction objective:specifically, the units will introduce a number of measures aimed at significantly reducing CO2emissions. The strategy assumes that the traditional postal business will continue to account forthe lion’s share of the profit over the years. By developing innovative solutions at the interfaceof physical and electronic mail, it is focusing on future-oriented services and new marketopportunities.
