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AnPostAnnualReport2006 �
FinancialHighlights
2006€m
2005€m
Turnover 8�8.8 752.9
Operatingprofitbeforeexceptionalitems �4.7 �6.2
Profitforthefinancialyear 75.7 40.7
Operatingprofitbeforeexceptionalitemsas%ofturnover �.8% 2.2%
Analysis of Turnover Analysis of Operating Costsbefore exceptional items
Mails 72.6%
Post offices 17.6%
Other 8.6%
Interest income 1.2%
Staff and postmasters’ costs 69.4%
Distribution 9.1%
Accommodation 3.9%
Operational 9.6%
Administration 4.8%
Depreciation & goodwill amortisation/impairment 3.2%
“AtPerlico,we’reIreland’sleadingalternative
providerofhomephoneandbroadbandservices.
Webringcustomersarealchoiceandsignificantly
lowerprices.Inordertogetourmessageacrosswe
useAnPost’sDirectMailproductssothatpeoplecan
seeforthemselvesjusthowwellPerlicocomparesto
existingsuppliers.DirectMailhasbeenakeydriverin
gettingourbrandmessageandcompetitivepricing
acrosstoourtargetmarket.”
PadraigO’NeillMarketingDevelopmentManager
BoardofDirectorsandCorporateInformation
4 AnPostAnnualReport2006
MargaretMcGinley,B.A.,LL.B.Chairperson – 2,3
Age 47
Appointed 4 February, 2003; second term
Ms.McGinleywasappointedas
ChairpersoninFebruary2003,having
previouslyservedasadirectorofAnPost
forfiveyears.SheisapartnerinMcGinley
&Co.Solicitors,MilfordandLetterkenny,
Co.Donegal.
PatrickComptonEmployee Director
Age 50
Appointed 1 November, 2004; fourth term
Mr.Comptonhasworkedinthepostal
serviceforthepastthirty-fouryearsand
hiscurrentpositionisthatofPartnership
Co-ordinator,basedinRoscommon.He
wasamemberoftheNationalExecutive
oftheCommunicationsWorkersUnionfor
twentytwoyearsanditspresidentin�986.
Heisactiveincommunitydevelopmentin
hislocalareaandheisamemberofArigna
LeaderBoardandRoscommonCounty
DevelopmentBoard.
JerryCondonEmployee Director – 2
Age 53
Appointed 1 November, 2004; third term
Mr.Condoncommencedworkin�97�with
theDepartmentofPostsandTelegraphs
andhasworkedasaPostOfficeClerkfor
hisentirecareer.Hehasbeenanactive
memberoftheCommunicationsWorkers
Unionthroughouthiscareerandheserved
ontheNationalExecutiveofthatunionfor
thirteenyears.
DonalConnell,C.Eng.,F.I.E.I.,B.E.Director – 2
Age 53
Appointed 14 August, 2006
Mr.ConnellwasappointedChief
Executiveon�4August,2006.Hebegan
hiscareerintheDepartmentofPosts
andTelegraphsandhasheldsenior
managementpositionsinUnitrodeIreland,
3ComIrelandandMaxtorIrelandwhere
hewasGeneralManagerpriortojoining
AnPost.Heisanon-executivedirectorof
XilinxCorporation’sEuropeanBoardand
ChairmanoftheInstituteofTechnology,
Blanchardstown.HeisalsoChairmanofAn
PostNationalLotteryCompany.
JamesHyland,B.Comm.,F.C.A.,F.C.I.S.,M.C.I.Arb.,M.E.W.I.Director – 1
Age 71
Appointed 11 December, 2003
Mr.HylandisaformerDeputyChief
ExecutiveofGoldenValeGroupanda
formerGroupChiefExecutiveofYoughal
Carpetsplc.HeiscurrentlyManaging
DirectorofJamesHyland&Company,
ForensicAccountants,andManaging
PartnerofHylandJohnsonMurray,
CharteredAccountants.HeisalsoChairman
ordirectorofseveralcompaniesincluding
AnPostNationalLotteryCompany.
TerryKelleher,Dip.IndustrialRelationsEmployee Director
Age 39
Appointed 1 November, 2004
Mr.KelleherstartedhiscareerinAnPost
in�987whenhejoinedtheCompany
asaClericalAssistant.Heiscurrently
employedasaClericalOfficerintheSavings
RepaymentssectionintheGPO.Anactive
memberandtrusteeoftheCivil,Public
andServicesUnion,hehasservedboth
asbranchsecretaryinAnPostandonthe
Union’sNationalExecutive.
BrianMcConnellB.B.S.Director
Age 60
Appointed 3 April, 2006
Acareerbankerbyprofession,Mr.
McConnellhascomprehensiveexperience
intheFinancialServicessector.Hehas
servedasChiefExecutiveofPermanent
tsbandUlsterInvestmentBank(Corporate
Banking/Finance).Nowretired,hehasheld
directorshipsinseveralfinancialinstitutions
includingIrishLifeandPermanentplc,
UlsterBankLimited,AllianzIreland,Irish
IntercontinentalBankandKereskedelmiet
Hittelsbank(Hungary).
AliceO’Flynn,B.A.,MSc.,Dip.LegalStudies,Cert.Eur.Comm.LawDirector – 1,3
Age 54
Appointed 27 May, 2002; second term
Ms.O’Flynnhasspentmostofherworking
careerinthecivilservice,workingfirstasan
ExecutiveandHigherExecutiveOfficerin
theDepartmentofJusticeandtheninthe
DepartmentofSocialandFamilyAffairs.She
iscurrentlyanAssistantSecretaryinthat
Departmentwithresponsibilityforhuman
resources,pensionsandcarerspolicy,
corporatedevelopmentandinternalaudit.
AnPostAnnualReport2006 5
PatrickDavorenEmployee Director – 1
Age 57
Appointed 1 November, 2004; fourth term
Mr.Davorencommencedworkin�965
withtheDepartmentofPostsand
TelegraphsandhasworkedasaPostOffice
Clerkforhisentirecareer.Hehasbeenan
activememberoftheCommunications
WorkersUnionthroughouthiscareer.He
wasalocalbranchtreasurerfortwenty
yearsandheservedontheNational
Executiveoftheunionfortwoyears.
ThomasDevlinEmployee Director – 2
Age 47
Appointed 1 November, 2004
Mr.DevlinbeganhiscareerinthePost
Officein�976whenhejoinedthe
DepartmentofPostsandTelegraphsasa
JuniorPostmanworkingasamessenger
intheMinister’sOffice.Heiscurrently
employedasanInspectorofPostmenatthe
SandyfordParcelDepot.Anactivemember
oftheCommunicationsWorkersUnion,he
servedontheNationalExecutivefortwo
yearsandwasChairmanoftheSDSDrivers
Branchfrom�996to2004.
LouiseEnglish,B.Comm,F.C.A.Director
Age 44
Appointed 1 June, 2005
Anaccountantbyprofession,Ms.English
beganhercareerwithCraigGardner/
PriceWaterhouseandthenjoinedIBI
CorporateFinance.Sheheldanumber
ofpositionsthere,includingDirectorof
Mergers&Acquisitions.Amemberofthe
InstituteofDirectors,shehasservedonthe
Boardsofanumberofpublicandprivate
IrishcompaniesincludingBordnaMónaplc
andSherryFitzgeraldplc.Sheiscurrently
anon-executivedirectorofSt.Vincent’s
HealthcareGroupLtdandotherprivate
companies.
CiaraHurley,B.B.S.,M.B.S.(Banking&Finance),M.S.I.Director – 2
Age 41
Appointed 3 April, 2006
Ms.HurleyisanInvestmentManagerwith
CitigroupQuilter.Shehasoversixteenyears
experienceinmanaginghighnetworth
clientswhichshegainedwhileworking
withGoodbodyStockbrokers,Merrill
LynchInternationalBankLtd,whereshe
wasInvestmentDirector,andnowwith
CitigroupQuilter.Sheisamemberofthe
Securities&InvestmentInstitute(Ireland)
andalsooftheInstituteofDirectors.
JohnQuinlivan,B.Sc.(Mgt.&Law),M.Sc.(SpatialPlanning),Dip.inPublicAdmin.Director – 2
Age 68
Appointed 9 May, 2003
Mr.Quinlivanhashadalengthycareer
inlocalgovernment,servinginsenior
positionsinninecounties,includingfifteen
yearsasLouthCountyManager.Heserved
forfiveyearsasamemberoftheNational
RoadsAuthorityandhealsoservedas
amemberoftheLocalGovernment
ManagementServicesBoardandtheLocal
GovernmentComputerServicesBoardand
AnComhairle.
AlanSloanePostmaster Director
Age 49
Appointed 1 January, 2007; third term
Mr.Sloanehasworkedinthefamily
groceryandpostofficebusinesssince
�976.Hewasappointedpostmasterof
LochGownapostoffice,Co.Cavanin
�979.HeisalsoManagingDirectorof
J.A.S.Limited,asecuritycounterand
furnituremanufacturingbusiness,whichhe
establishedin�985.
PeterWyer,B.Comm.,LL.B.Director – 3
Age 58
Appointed 4 February, 2003; second term
Intheearlypartofhiscareer,Mr.Wyer
workedforsometimeinmerchantbanking
buthehasspentmostofhiscareerinsales.
HejointedArchMotorsLimitedinGalway
in�976andheiscurrentlySalesDirector
andCompanySecretaryofthatcompany.
Heisalsoadirectorofanumberofother
relatedcompanies.
SECRETARY
MichaelTyndall
REGISTEREDOFFICE
GeneralPostOffice,
O’ConnellStreet,Dublin�
AUDITORS
KPMG,
CharteredAccountants
BANKERS
BankofIreland
SOLICITORS
MathesonOrmsbyPrentice
KEYTOBOARDCOMMITTEES
�AuditandSecurity
2Personnel
3Remuneration
A one-stop shop
“Lastyear,ShopDirectsoldcloseto�million
productstoover�00,000customersalloverIreland.
Thatmeantsupplyinganything–fromclothesto
cameras–directtoourcustomers’homes.AnPost
provideuswiththedirectmailsolutiontopromoteour
productlines,anunrivalleddeliverynetworkandthey
offerourcustomersthechoiceofpayingthroughbillpay,
billpay.ieandPostpoint.Allinoneintegratedservice.”
GeoffScullyCommercialDirector
8 AnPostAnnualReport2006
IntroductionSincetheBoardapprovaloftheStrategicRecoveryPlanjustthreeyears
agotherehasbeenastrongimprovementinthecommercialandfinancial
positionoftheCompany.Therehasbeenpositivedevelopmentincore
businesses,resolutioninmanyareasofourindustrialrelationsand,above
all,restorationofconfidenceinthefutureofthebusinessasawhole.
Whiletherearestillmanychallengesahead,somequitesignificant,we
arenowinapositiontoaddressthemwithaclearunderstandingof
whatisrequiredandwithaprovenabilitytoovercomethem.Anumber
ofdevelopmentsduringtheyear,mostnotablyperhapsourentryinto
anexcitingnewfinancialservicesjointventure,reflectthesignificant
distancewehavecomeinarelativelyshorttime.
Financial PerformanceTheprofitaftertaxforthefinancialyearis€75.7m,anincreasefromthe
prioryearprofitof€40.7m.Theresultfortheyearisinpartdrivenbyan
exceptionalgainarisingfromthesaleoftheformerparcelsdepotonthe
NaasRoad.
In2006AnPostmadeanoperatingprofitbeforeretrospectivepayawardsof€�4.7m.Whilethese
profitsarewelcome,thislevelofprofitisatthelowerendofwhatisneededforinvestmentand
renewalinacompanyofthescaleofAnPost.
Revenuesin2006increasedby8.8%year-on-yearto€8�9m.Thisincreasewas,inthemain,drivenby
stronggrowthof4%inourcoremailsbusiness,concertedmarketingandbranddevelopmentactivity
andcertaintariffincreasesinmailproducts.Revenuefromservicesofferedinpostofficesincreasedby
6.�%during2006whileourportfolioofsubsidiarybusinessesalsoreportedsolidgrowth.
Overalloperatingcostsbeforeretrospectivepayawards,at€804.2m,werewithinbudget,even
allowingforincreasedspendingincertainstrategicareassuchassecurityatpostofficesandmarketing
initiatives.
Core BusinessesThegrowthof4%inmailvolume,whichishigherthanthatachievedbymostotherEuropeanpostal
administrations,reflectstheoutcomeofourfocusonsalesandmarketing,thecontinuingsuccess
oftheIrisheconomyandcurrentgrowthinthehousingstock.Itisparticularlypleasingthatitwas
achievedinayearinwhich,aspartofthepostalmarketliberalisationprocess,62%ofourrevenue
wasexposedtocompetition.TheCompanyisconfident,therefore,thatmailvolumescanbegrown
significantlyoverthenextfewyears.Toachievethiswewillbeincreasinglyactiveinthemarketplace,
encouragingand,whereappropriate,incentivisingcustomerstoincreasetheiruseofmailservices,
particularlydirectandadvertisingmail,enablingthesechannelstoreachtheirtruepotential.Thereisa
widespreadbeliefthatthegrowthofinternetusehasawhollynegativeimpactonthetraditionalmail
service.Thatisnotnecessarilytrue,asthegrowthine-commerceandretailingcontinuestohavean
importantpositiveaffectonmail,particularlyinparceldeliveries.
Chairperson’sStatement
MargaretMcGinley
Chairperson
AnPostAnnualReport2006 9
BusinesstransactedthroughthePostOfficenetworkalsoshowedsolidgrowthin2006.BillPay,
WesternUnionmoneytransfersandMobilePhoneTop-Upservicesperformedparticularlywell.New
welfarerecipientsare,inincreasingnumbers,optingtoreceivetheirpaymentsbyelectronicfund
transferintotheirownbankaccounts.However,weremainconfidenthere,too,thatwewillhavean
increasinglyattractiverangeofproductsandservicesthroughPostbank,ournewjointventurewiththe
Europeanbankingandinsurancegroup,Fortis.
Retail NetworkTheselectionofFortis,asAnPost’sjointventurepartnerfortheprovisionofretailbankingservices
wasahighlightof2006.Selectedinautumn2005fromashortlistoffourpotentialpartners,Fortisis
oneofEurope’slargestfinancialservicescompanies.ThemarketleaderintheBeneluxcountries,ithas
operationsin20countriesandoperatestheBelgianBanquedeLaPoste.Withastraightforwardvalue-
for-moneypropositionPostbankwillbeparticularlyappealingtocustomerstraditionallyunderserved
bythebankingsectorandthemanywhohaveanaturalaffinitywithAnPost.Iampleasedthatthis
representsgenuinefreshthinkingwithinthesector,bringingmoretothecommunitiesweservethan
simplyanotherbankingoption.Indoingsoweaimtoensuretherelevanceofourdiverseproductand
serviceportfoliotoourcustomerbase.Wearecontinuouslyremindedoftheleveloftrustthatthe
publichasinAnPostwhichonlyreinforcesourdesiretocontinuetodeservesuchtrust.
AnPostcurrentlyhasacomprehensivenetworkof�,36�outlets,thehighestnumberpercaputin
Europe.Werecognisethecontinuinglevelofchangeinthesizeofthenetworkandduring2007the
Companywillundertakeacomprehensiveanddetailedreviewofthecommercialandsocialaspectsof
postofficesacrossthecountryandthemannerinwhichpostmastersareremunerated.Thisreviewwill
seektodeterminetheoptimumconfigurationforthedeliveryofservicesintheyearsahead.
Market LiberalisationTherewasafurtheropeningupofthemailsmarketin2006andasImentionedabove,62%ofAn
Post’smailsservicerevenuesnowcomefromareaswhicharefullyopentocompetition.Itisstillearly
daysfornewentrantstothemarketinIreland;theCompanyisfullyawareofthechallengeposedby
increasingcompetitionandisdeterminedtosucceedwhenthemarketisfullyliberalisedin2009.
Mailsqualityofserviceisoneareainwhichweneedtoachievesignificantimprovement.Thequality
performancestatisticforthefullyear2006,asmeasuredbyTNSmrbionbehalfoftheCommission
forCommunicationsRegulation(ComReg)isnotyetavailable,butweknowfromtherecorded
performanceforthefirstthreequartersthatthelevelachievedwassubstantiallybelowComReg’s94%
nextdaydeliverytarget.Ourperformanceinthisregardfallsfarshortofourownandourcustomers’
expectations.Anumberofinitiativeshasbeenundertakenbymanagementwiththeaimofachieving
significantimprovementsasquicklyaspossible.
�0 AnPostAnnualReport2006
Commitment to ChangeIreferredinmyintroductiontoareturnofconfidenceinAnPost.Thishasbeendueinnosmallmeasure
toanimprovementintheindustrialrelationsclimate.
Onabroaderlevel,thechallengeforAnPost,itsemployeesandtheirtradeunions,isthedevelopment
ofacultureofchange,oneinwhichchangeisregardedasanormal,continuingandconsensualprocess.
DevelopingsuchaprocessisofpivotalimportancetothefutureoftheCompany.
New StrategyInNovember2006,theBoardapprovedanewStrategicPlancoveringtheperiodto20��.Transformation
ofAnPostintoatrulycustomer-focusedbusinessthatwillsurviveandthriveinthefaceofcompetition
isatthecoreofthisplan.Keyelementsinclude:maximisingthegrowthopportunitiesavailableto
theCompany;providingconsistenthighqualityofservicethatmeetscustomers’andstakeholders’
expectations;andthedevelopmentofanewapproachforongoingengagementwithemployeesandtheir
unions,aswellasourpostofficecontractors,tocreateastimulatingandrewardingworkenvironment.
Thenewplanisundoubtedlychallenging,particularlyasitmustbeimplementedagainstabackground
ofmarketliberalisationandincreasingtechnologicalsophisticationincommunications.However,Iam
convincedthatitistherightplanforAnPost.Challenging,unquestionably,butwiththepotentialto
secureaviablefutureforallofAnPost’sstakeholders.
ConclusionDuring2006wewelcomedDonalConnellasChiefExecutive.AlreadyDonalhasmadehismarkon
theorganisation.HehasputinplaceanewtoplevelorganisationstructureandthenewStrategicPlan
owesmuchtohisvisionofhowAnPostshouldpositionitselfforthefuture.Iwishhimeverysuccessin
deliveringthisvision.
Sadly,ImustmakementionofAlanCuniffe,thelatepostmasterofJohn’sGreenPostOfficeinKilkenny.
AlanlosthislifefollowingarobberyathispostofficeinNovember.Hisuntimelydeathwasatragedyfor
hisfamilyandalowpointforAnPostin2006.Alanandthecircumstancesofhisdeathwilllivelonginthe
memoryofhiscolleaguesaswellasinthememoryofhisfamilyandfriends.Mayherestinpeace.
OnbehalfoftheBoard,Iwouldliketothankthemanagementandstaffandourcontractorsfortheir
loyaltyandworkduring2006.OnmyownbehalfIwouldliketothankmycolleaguesontheBoardfor
thededicatedandcommittedmannerinwhichtheydischargedtheirdutiesduring2006.Iwouldliketo
sayaspecialwordofthankstotheMinisterforCommunications,MarineandNaturalResourcesandhis
officialsfortheirassistanceandsupportthroughouttheyearandparticularlyfortheirenormoushelpin
progressingthenewjointventurewithFortis.
MargaretMcGinley
Chairperson
22March,2007
Chairperson’sStatementcontinued
AnPostAnnualReport2006 ��
Financial PerformanceInthis,myfirstAnnualReportsinceassumingtheroleofChiefExecutive,Iam
delightedtoreportthatAnPost’simprovedfinancialperformanceofrecentyears
continuedin2006.
Turnoverfortheyeargrewby8.8%to€8�9mmainlydrivenbyoureffortsinsales
andmarketing,growthinmailvolumeandpriceincreasesforcertainmailproducts.
Overalloperatingcostsbeforeretrospectivepayawardsfor2006amountedto
€804.2m.Operatingprofitbeforeretrospectivepayawardsamountedto€�4.7m.
WhiletheCompanyisreportingaprofitof€75.7m,aftertax,for2006thisarisesin
partfromthesaleofassets,€93.5mofthegainrelatingtothesaleofourformer
parcelsdepotontheNaasRoad.Thelevelofoperatingprofitisatthelowerendof
whatthisCompanyrequiresforreinvestmentandrenewalpurposes.
Theaccountsincludeotherexceptionalcosts;firstly,thedischargeofadeferred
increaseinstaffpayandpostmasterremunerationamountingto€20mandsecondly,
thecostofinvestigatingandpursuingtheJointVenturebusinessopportunitywithFortis.
Quality of ServiceInanotherwisepositiveyear,ourmailsqualityofserviceperformanceranksasasourceof
disappointmentandconcern.Qualityofserviceisakeyareainwhichweneedtoachievesignificant
improvement.Thequalityperformancestatisticforthefullyear2006,asmeasuredbyTNSmrbion
behalfofComReg,isnotyetavailable,butweknowfromtherecordedperformanceforthefirstthree
quarters(e.g.74%forQuarter32006)thatthelevelachievedissubstantiallybelowthe94%nextday
deliverytargetsetbyComRegforsinglepieceprioritymail.Thisisanissueofgreatconcern,notsimply
becausewearefallingshortoftheregulatorytarget,butbecausewearefallingshortofthelevelof
qualitythatourcustomersareentitledtoexpectfromusasamatterofroutine.Variousinitiatives
havebeeninstigatedbymanagementwiththeaimofachievingsignificantimprovementsasquicklyas
possible,andinQuarter�2007wearebeginningtoseeanappreciableimprovementinqualitylevels
asmeasuredbyourownoperationalmetrics.
InthecourseoftheregulatoryprocessleadingtotheapprovalbyComReginFebruary2007ofan
interimpriceincreaseonthebasicstampfrom48cto55c,qualityperformancehasemergedasan
importantpricingissue.Thisisasitshouldbe,sincethepricepaidforaserviceinherentlyreferstoa
particularqualitylevel.TheCompanyhascommitteditselftoachievingan80%nextdaydeliverytarget
in2007withintheabovemonitor,andthetimingoftheimplementationofthe2008priceincreasewill
belinkedtoperformanceagainstthisthreshold.Thisisatransitionalobjective.Ultimately,AnPostmust
achieveandconsistentlymaintainperformanceatorabovethe94%level.Wearecurrentlyestimating
atimehorizonofthreeyearstoachievethistarget.However,thereisnoreasontheCompanyshould
notbeabletoachievethislevelofquality,whichanumberofotherEuropeanpostalprovidersand
theircustomersregardasstandard.
ChiefExecutive’sReview
DonalConnell
Chief Executive
�2 AnPostAnnualReport2006
Mail ServicesIn2006,AnPostderived72.6%ofitsoverallrevenuesfromtheprovisionofmailservices.Volumegrowth
ofover4%exceededexpectations,reflectingourfocusonmarketingactivityandbranddevelopment,the
strongperformanceoftheeconomyasawholeandthecontinuedexpansionofthehousingstock.
Thislevelofgrowthinmailvolumesismuchstrongerthanthatbeingreportedinothercountries.
Despitethis,Irelandstillhasalowerlevelofmailpercaputthanistypicalforahighperformingeconomy.
Effectively,wearecatchingupwithothercountrieswhichhaveenjoyedearliereconomicsuccess.Thereis
stillgoodpotentialforgrowthinarangeofareas,mostespeciallyindirectmailservices.
Towardsthecloseof2006wewereprocessingover3.5mitemseachday,risingto8movertheChristmas
period.During2006animportantprocesschange,facilitatedbytheautomationprogrammeofrecent
years,wascompletedandenabledustosortmailtoroutelevel.Thisinitiative,whichinvolvedsubstantial
change,isbutoneconcreteexampleofwhatmustbecomethenormforAnPostintheyearsahead.We
havesubsequentlybegunaContinuousImprovementProgrammewhichinvolvesworkingcloselywith
customerstoensurethattheirmailispresentedformailinginwayswhichwilloptimisethebenefitsof
automatedprocessingandsortingforthem.
Recognisingthechangingneedsofourcustomers,weintroduced,duringtheearlypartof2006,arevised
portfolioofmailservicesdesignedtomakeourservicessimpleandmoretransparent.Customerreaction
hasbeenpositive.
Wealsocompletedtheintegrationofourparcelsbusinessintoourcoremailsactivity.Themajorityofthe
businesspreviouslytransactedundertheSDSbrandhasbeenretainedandCompanycostshavebeen
significantlyreduced.Wewillfurtherdevelopourpositioninthisgrowingsegmentofthemailsbusiness.
Theyearwasalsonoteworthyforthefurtherreduction,aspartofmarketliberalisation,intheproportion
ofthemailsmarketreservedtoAnPost.Atthispointalmosttwothirdsofourrevenueisexposedtofull
competition.AnPostrecognisesthatawarenessoftheircompetitiveoptions,amongboththegeneral
publicandbusinesscustomers,willinevitablylagsomewhatbehindtheliberalisationprocess.Thatsaid,
weknowthatincreasedcompetitionwithinthemarketrepresentsasignificantthreattoourcorebusiness.
OneofmykeyobjectivesinthecomingyearswillbetoensurethatAnPostwillbefittocompeteinafully
openmarket.
Post OfficesTheselectionofEuropeanbankingandinsurancegroup,Fortis,asAnPost’sjointventurepartnerforthe
provisionofretailbankingserviceswasoneofthemajorhighlightsof2006.Thesubsequentsuccessful
conclusionofanagreementwithFortisandtheachievementofGovernmentapprovalfortheinitiative
havecreatedaheightenedsenseofexpectancy.Withagradualroll-outofnewproductsandservices
throughoutthecountryduring2007,postofficeswillhaveasignificantlineofnewandinnovative
productsonoffer,furtherenhancingAnPost’srelevancetowhatisaverybroadcustomerbase.We
promisetobefarmorethanyetonemoreoptioninanunnecessarilyconfusingfinancialservices
marketplace.Withanover-ridingfocusonsimplicityandvalue-for-money,wewillrespectthetrustthat
ourcustomershaveinusandwhichsetsusapart.
ChiefExecutive’sReviewcontinued
AnPostAnnualReport2006 �3
Thenumberoftransactionsmadeatthecountry’spostofficesandpostalagenciesduring2006was
over�00m,withourBillPayserviceperformingparticularlywellandincreasingto25.5mbillspaidin
2006.However,newSocialWelfarerecipientsareincreasinglychoosingtoreceivetheirpaymentsby
meansotherthanthroughpostoffices.
ThepostofficenetworkisofvitalimportancetoboththebusinessandsocialfabricofIrishsociety.
Thisnetworkhascontractedinrecentyearsasaresultofretirementsandresignations.Changesin
economiccircumstances,demographicsandcustomerpurchasingpatternshaveimpactednegatively
onsomeoutletsandpositivelyonothers.Inmanyruralareasthepostofficeisoftentheonlybusiness
outletremaininginlocalitieswhereallothershaveclosed.Inurbanareas,postofficesfacedifferent
challenges.Toaddressthissituation,Ihavebegunareviewofourretailnetworktodetermine,with
absoluteclarity,theoptimumconfigurationtakingaccountofboththebusinessandsocialaspectsof
ourserviceprovision.
Wearedeeplyconsciousoftheparticularthreatstostaffandcontractorsposedbyworkinginan
environmentwhichhandles,attimes,significantvolumesofcash.During2006weadvancedthe
completionofamajor€�5minvestmentinenhancedsecuritymeasures.
Working with CustomersAsfullliberalisationofthemailsindustrycomescloser,oneofthemainchallengesfacingAnPostis
toretaintheconfidenceandsupportofkeycustomersinthefaceofemergingcompetitors.Thelevel
ofcustomerservicethatweconsistentlyprovidetothesecustomerswillplayanimportantpartinour
future.WhiletheCompanycanandwilldobetterinthisregard,Ihavebeenimpressed,duringmy
shorttimewithAnPost,bythequalityoftherelationshipthatalreadyexistsbetweentheCompany
anditskeycustomers.
Thecustomerprofilestobefoundelsewhereinthisreportaretestamenttothefactthatwehavethe
capacity,capabilityandenthusiasmtoworkwithkeycustomers,tounderstandtheirpreciseneeds
andtoprovidethemwithcustomisedservicesdesignedtoachievetheirbusinessobjectives.Iintendto
makesureoverthecomingyearsthatweincreasetherangeofcustomisedsolutionsavailableandthat
allAnPostcustomersexperiencesignificantcustomerserviceimprovements.
Industrial RelationsTheroleAnPostplaysinIreland’scompetitivenessasabusinesslocationimposesaheavy
responsibility,ofwhichIamfullyaware.Thesmoothfunctioningofourservicesiscrucialtothe
country’sattractivenessasabusinesslocation.Anactivecommitmenttofulfillingthesocialaspects
ofourbusinessisallthemoreimportantinviewoftheculturalchangecurrentlyaccompanyingour
transformationfromaStatemonopolyintoacompetitivemarketparticipant.Oursuccessinthisregard
isofsignificantimportancetoourcustomers,theirbusinessesandemployees.Wewillcontinueto
reconcileourtransformationtoacosteffective,profitablecompany,inthecontextofanemerging
market,withsuchsocialconsiderationsintheyearsahead.
�4 AnPostAnnualReport2006
OntheissueofhowongoingchangeinAnPostcanbeinculcatedintothecultureoftheorganisation,Iam
committedtoachievingagreementontheestablishmentofaforuminwhichtheCompanyanditsstaffand
unionscanengageregardingthebusinessagendatoresolvechangeissuesquickly.Areview,underthedirection
ofindependentfacilitatorPeterCassells,ofPartnershipasitpreviouslyoperatedinAnPostisakeystepinthis
regard.Thisreviewisdueforcompletionin2007andIamoptimisticthatthiskeyissuewillberesolvedtothe
satisfactionoftheCompany,staffandunions.
New StrategyFollowinganevaluationoftheCompanyoveranumberofmonths,towardstheendof2006theBoardapproved
anewstrategicplancoveringtheperiodto20��.Thisplanrecommendedthatweimplementatransformationof
theCompanyintoatrulycustomer-focussedbusinesswhichcansurviveandthriveinthefaceofcompetition.
KeyelementsincludemaximisingthegrowthopportunitiesavailabletoAnPostandprovidingconsistenthigh
qualityofservicethatmeetscustomers’andstakeholders’expectations.Iintendtoensurethedevelopmentof
anewmechanismforongoingengagementwithouremployeesandtheirunions,withtheobjectiveofcreating
astimulatingandrewardingworkenvironment.Anewtoplevelorganisationstructurehasbeenputinplaceto
supportthedeliveryofthisstrategicplan.
Againstabackgroundofmarketliberalisationandincreasingtechnologicalsophisticationincommunications,the
achievementofthisplanwillbebothchallengingandrewarding.Noneofthepositiveelementsoftheplan,nor
indeedtheobviousopportunities,canbeachievedwithoutacommitmentbyeveryoneinAnPosttoongoing
changeinthewaywecarryoutourbusinessandhowwerespondtoenvironmentalchangesinthemarketplace.
ConclusionOverall,2006wasayearofsatisfactoryperformanceforAnPost.Itwasayearduringwhichfoundationswerelaid
uponwhichwenowhavethepotentialtoachievethetransformationoftheCompany.Itwasalsoayear,Ibelieve,in
whichtherewasrejuvenationinbothcustomers’perceptionoftheCompanyandinthemoraleofouremployees.
AnPost’sfinancialprogressin2005and2006isdueinnosmallparttothecontributionmadebyitsemployees.
TheCompanyhassurvivedinalltheareasofbusinesswhereitisalreadyexposedtocompetition.Indeed,wehave
regainedlostground.Allthisbodeswellforthefutureaswefocusfurtheronservingourcustomers’needs.
IwouldliketothanktheChairpersonandtheBoardfortheirwisdom,supportandguidanceduring2006.Iwould
alsoliketothankmymanagementteam,ourstaffandcontractorsforthededicatedandcommittedmannerin
whichtheycarriedouttheirdutiesduring2006.Inconclusion,Iwishtoexpressourgratitudetoallourbusiness
partnersforthetrustplacedinus.Theirconfidencewillspurustocontinuetoimproveourperformanceandto
ensurethatwearereliablepartnersinallaspectsoflogistics,communicationsandfinancialtransactions.
DonalConnell
Chief Executive
22March,2007
ChiefExecutive’sReviewcontinued
Management
DonalConnell,C.Eng.,F.I.E.I.,B.E.Chief Executive, Age 53
Mr.ConnellwasappointedChief
Executiveon�4August,2006.
Hebeganhiscareerintheformer
DepartmentofPostsandTelegraphs
andhasheldseniormanagement
positionsinUnitrodeIreland,
3ComIrelandandMaxtorIreland
wherehewasGeneralManager
priortojoiningAnPost.Heisa
non-executivedirectorofXilinx
Corporation’sEuropeanBoard
andChairmanoftheInstituteof
Technology,Blanchardstown.Heis
alsoChairmanofAnPostNational
LotteryCompany.
JohnDaly,A.C.M.A.,M.Sc.(Mgmt.)Retail Operations Director, Age 44
Mr.DalyjoinedAnPostinDecember
�988havingworkedpreviouslyas
amanagementaccountantinFÁS.
Duringtheearlypartofhiscareer
withAnPost,heworkedinthe
Financedivisionasamanagement
accountant.Hethenheldvarious
seniorfinanceandmanagement
positionswithintheRetaildivision
beforebeingappointedtohis
currentpositioninOctober2006.
JackDempsey,B.Comm.,M.B.A.,M.P.A.Collection and Delivery Director, Age 56
Mr.DempseyjoinedthePostOffice
in�968asanExecutiveOfficerin
theformerDepartmentofPostsand
Telegraphs.Duringhiscareer,hehas
gainedwideexperienceinallaspects
ofpostaloperationsandcommercial
activities,bothnationaland
international,occupyingavarietyof
seniormanagementpositionsacross
theCompany.Hewasappointed
CollectionandDeliveryDirectorin
December2006.
PatKnight,M.Sc.(Mgmt.),F.C.I.P.D.Human Resources Director, Age 52
Mr.KnightjoinedAnPostinMarch
2004asHumanResourcesDirector.
Previously,hehadbeenGeneral
ManagerHumanResourcesat
WaterfordCrystal,whichhejoined
in�986.There,heprogressed
throughvariousseniorHRroles
bothinIrelandandtheUK.Previous
experiencealsoincludesworkas
aPersonnelOfficerwithBordna
Mónaplc.HeisaTrusteeoftheAn
PostSuperannuationSchemes.
BrianMcCormick,B.E.(Mech.),M.B.A.Services Director, Age 47
Mr.McCormickjoinedAnPost
inMay2002asStrategyDirector
andwasappointedtohiscurrent
positionofServicesDirectorin
October2003.Priorexperience
includesCRHplcandMerrion
CorporateFinancewherehewasa
Director.HeisaTrusteeoftheAn
PostSuperannuationSchemes.
LiamO’SullivanDirector Mail Processing, Age 40
Mr.O’SullivanjoinedAnPost
in�985asaPostOfficeClerk.
Duringhiscareer,hehasgained
broadexperienceacrossthefull
rangeoftheCompany’sbusiness.
PriortohisappointmentasMail
ProcessingDirectorinJuly2004,he
heldvariousseniormanagerialand
projectmanagementpositionsin
theCompany.
PeterQuinnB.Comm.,F.C.A.,M.B.A.Chief Financial Offi cer, Age 48
Mr.QuinnjoinedAnPostinAugust
2004havingpreviouslyworkedand
heldseniorfinancialandstrategic
positionsinPJCarrollandCompany
plcandMonaghanMushrooms
Limited.Earlierinhiscareer,he
trainedasacharteredaccountant
andworkedinpracticewithKPMG.
LiamSheehanSales and Marketing Director, Age 47
Mr.SheehanjoinedAnPostin
2000asGeneralManagerSales&
Marketingandhewasappointed
asSales&MarketingDirectorin
October2006.Hehasextensive
experienceintheIrishfastmoving
consumergoodssectorandinbrand
creation,channelmanagement
andsalesstrategy.Priortojoining
AnPost,heheldseniorSales&
MarketingpositionsinProctor&
GambleandinGuinnessandhe
wasCommercialDirectorwith
ErinFoods.
MichaelTyndall,B.Comm.,F.C.A.Company Secretary, Age 56
Mr.TyndalljoinedAnPostin
January�989asHeadofFinancial
Accountingandhewasappointed
CompanySecretaryinApril
�998.Hebeganhiscareerinthe
accountancyprofessionfrom
wherehequalifiedasachartered
accountant.Hethenworked
andheldseniorfinancialand
managementpositionsininsurance
anddistributionbusinesses.
HeisaTrusteeoftheAnPost
SuperannuationSchemesandheis
alsoCompanySecretarytoAnPost
NationalLotteryCompany.
BarneyWhelan,B.Sc.,M.B.A.,F.P.R.I.I.Head of Communications and Corporate Affairs, Age 52
Mr.WhelanjoinedAnPostinJanuary
2005.Havingspentmanyyearsin
theaquacultureindustry,hewas
responsibleforpublicrelationsand
brandcommunicationsattheESB.
Hesubsequentlyheldthepositionof
Director,SalesandMarketingatThe
FoodSafetyPromotionBoard.He
wasappointedtohiscurrentposition
inOctober2006.
AnPostAnnualReport2006 �5
“ScreenclickisIreland’sleadingDVDmail
ordercompany-bringingcustomers’favourite
filmsdirecttotheirhomes.Ourbusinessisentirely
dependentonanefficientdeliverypartnerfor
rentalsandreturns.That’swhereAnPostcomes
in.Quantitiesofmailhavesoaredinrecenttimes
–withourbusinessexpansion–buttherehas
beennoslowdowninservicefromAnPost.”
FrankO’GradyManagingDirector
Epic growth!
�8 AnPostAnnualReport2006
Financial Overview
2006€m
2005€m
Turnover 818.8 752.9
Operatingprofitbeforeexceptionalitems 14.7 �6.2
Profitforthefinancialyear 75.7 40.7
Profit for the yearTheprofitforthefinancialyearis€75.7m,anincreasefromtheprioryearprofitof€40.7m.Operating
profitbeforeexceptionalitemsamountedto€�4.7m,reflectingasatisfactorytradingyear.
TurnoverTurnoverincreasedby€65.9mover2005.Inthemailsbusiness,turnoverincreasedby€50.2mdue
totheincreaseincoremailvolumesandtorevenuegeneratedfrompriceincreases.Inretail,the
traditionalbusinessesofwelfarepaymentsandinvestmentservicesremainedrelativelystaticwhile
revenuesfromotherservicesincreasedduring2006.Billpay,WesternUnionandMobilePhoneTopUp
servicesperformedparticularlywell.
Operating CostsWages,salariesandpostmasters’costs,beforeretrospectivepayawardsandpensioncosts,increased
by€32.2mintheyear.Thisincreaseincludesbothpaymentofthecurrentyearelementofthepay
increasesarisingunderanationalwageagreementandcertainproductivitypaymentsunderchange
agreements.
Thepensioncharge,excludingcostsinrelationtoretrospectivepayawards,increasedby€��.7min
2006.ThischargearisesprimarilyundertheFRS�7pensionaccountingconvention.Thisaccounting
conventionismoreconservativethantheprecedentSSAP24andtheannualchargeintheaccounts
isnowmorevolatileduetomovementsinfinancialmarketsoutsideofmanagementcontrol.Thereis,
consequently,animpactontheoperatingresultsfortheyearwhichmasksanunderlyingimprovement
intheoperatingmarginofthecorebusiness.
Allotheroperatingcostsincreasedby€23.5m.Thisfiguretakesaccountoftheincreasedcostof
providingsecuritythroughoutthepostofficenetwork,arenewedemphasisonmarketing,higher
accommodationcostsandanincreaseintransportcosts.
Asset DisposalsDuringtheyear,theGroupearnedanexceptionalprofitbeforetaxfromthesaleofassetsof€94.7m.
ThedisposaloftheformerparcelsdepotontheNaasRoad,foraconsiderationof€�07m,resultedin
aprofitof€93.5mbeforecapitalgainstaxof€�6.8m.Thepriceachievedreflectedtheimportance
ofthisveryprominentdevelopmentsite.In2006,€�.2madditionalconsiderationwasreceivedarising
fromthesalein2005ofsubsidiaries,PostTSUKLimitedandAnPostTransactionServicesS.A.
FinancialReview
AnPostAnnualReport2006 �9
Joint VentureInamajorinitiativeforAnPost,anagreementtoestablishajointventurefinancialservicescompany
wassignedwithFortisinOctober2006.Thedevelopmentofthisconceptwasamajorprojectin
respectofwhichexceptionalcostsamountingto€�3.9mwereincurred.Fullvaluewasachievedin
negotiationsforAnPost’scontributionofthePostpointandOneDirectbusinessestothejointventure.
TaxationAsmentionedearlierthesaleoftheNaasRoadsiteresultedinacapitalgainstaxchargeof€�6.8m
which,togetherwithtaxontradingprofitsintheGroup,hasresultedinatotaltaxchargeof€20.9m
Capital ExpenditureTotalcapitalexpenditurein2006amountedto€�8.9m.Thisrepresentsanincreaseof€8.6mover
2005andreflectstheCompany’scapacitytoincreaseinvestmentinordertosupportitsbusinessnow
thatliquidityhasimproved.
LiquidityTheGrouphadanetcashinflowfromoperationsduringtheyearof€37.�m.Strongcashflowsfrom
bothoperationsandassetdisposalshaveresultedinincreasedcashholdingsat3�December2006.
Therewillbesignificantdemandsonthesecashresourcesintheshortterm,primarilytofinance
severancepaymentswhichwillariseasthevariouschangeprogrammesareimplemented.
AnPosthasinplaceoverdraftfacilitieswhichwerenotavailedofduringtheyear.Thetreasuryfunction
oftheCompanyoperatesunderaBoard-approvedpolicywhichislow-riskandnon-speculative.The
primaryobjectiveofthetreasuryfunctionistoensuretheavailabilityoffundsfortradingactivities
whileoptimisingthereturnonavailablecashresources.
Complete fulfi llment
“KomplettisEurope’sleadinge-commerce
businesswithinternetshopsin�0countries.Lastyearwe
receivedanorderevery36seconds24/7/365throughour
internetshops.FortheIrishmarketallordersareshipped
fromourownwarehousebasedinHolland.Ourgoalis
toserveourcustomersinthebestpossiblemanner,not
onlythroughourcomprehensivewebsiteandexcellent
customerservicebutalsothroughgooddeliveryofour
products.WithAnPostasourstrategicpartnerforIreland
we’vemanagedtoimprovethequalityofourdistribution
channelandtherewithcustomersatisfaction.”
JeroenvandeMeulengraafOperationsManager
22 AnPostAnnualReport2006
FollowingaDirectionundertheEuropeanCommunities(PostalServices)Regulations,2002(S.I.6�6
of2002)issuedon23May2003bytheCommissionforCommunicationsRegulation(ComReg),An
Postisrequiredtopublishinitsannualreportinformationrelatingtotheuniversalserviceincluding
informationonthenumberofcomplaintsandthemannerinwhichtheyhavebeenhandled.
Requirements of the USO (Universal Service Obligation)UnderRegulation4(2)(a)oftheEuropeanCommunities(PostalServices)Regulations,2002(S.I.6�6
of2002)“theRegulations”,AnPostisdesignatedasauniversalserviceproviderwiththeobligationto
provideauniversalpostalservice.
UnderRegulation4(3)(a),auniversalserviceprovidershallguarantee,oneveryworkingdayandnot
lessthan5daysaweek,saveincircumstancesorgeographicalconditionsdeemedexceptionalby
ComReg,asaminimum:
(i) oneclearance,and
(ii) onedeliverytothehomeorpremisesofeverynaturalorlegalpersonor,bywayofderogation,
underconditionsatthediscretionofComReg,onedeliverytoappropriateinstallations.
UnderRegulation4(4)universalserviceshallincludethefollowingminimumfacilities:
(a) theclearance,sorting,transportanddistributionofpostalitemsupto2kgs;
(b) theclearance,sorting,transportanddistributionofpostalpackagesupto20kgs;
(c) servicesforregistereditems;
(d) servicesforinsureditemswithintheStateandtoandfromallcountrieswhich,assignatories
totheConventionoftheUniversalPostalUnion,declaretheirwillingnesstoadmitsuchitems
whetherreciprocallyorinonedirectiononly.
UnderRegulation4(6)theuniversalservicesshallcoverbothnationalandcross-borderservices.
UnderRegulation5,auniversalserviceprovidershallmeetthefollowingrequirementswithrespectto
theprovisionoftheuniversalservice:
(a) theserviceshallguaranteecompliancewiththeessentialrequirements;
(b) anidenticalserviceshallbeofferedtousersundercomparableconditions;
(c) theserviceshallbemadeavailablewithoutanyformofdiscriminationwhatsoever,especially
withoutdiscriminationarisingfrompolitical,religiousorideologicalconsiderations;
(d) theserviceshallnotbeinterruptedorstoppedexceptincasesofforcemajeure;and
(e) theserviceshallevolveinresponsetothetechnical,economicandsocialenvironmentandtothe
needsofusers.
UniversalService
AnPostAnnualReport2006 23
Access to Universal ServicesAnPostprovidesaccesstoitsservicesthroughanetworkof84Companypostoffices,�,277
contractor-operatedpostofficesand�7�postalagencies.Inaddition,some5,204retailpremisesare
licensedtosellpostagestamps.Tofacilitatephysicalaccesstotheservice,approximately5,000post
boxesaredistributedwidelythroughouttheState.
TheDisabilityAct,2005placesadutyonpublicorganisationstoensurethattheirpublicbuildings
andservicesare,asfarasispracticable,accessibletopeoplewithdisabilities.Inparticular,thoseareas
ofbuildingstowhichthepublichasaccessaretobemadeaccessiblenotlaterthan20�5.AnPost
hasbegunaprogrammetoaddresssuchissuesattheofficesitownsandisontarget,subjecttothe
necessaryexternalapprovals,tomeetitscommitmentsundertheAct.Themajorityofpostofficesare,
however,operatedonacontractbasisbypostmastersandpostmistressesappointedbyAnPost.The
Companyisnotinapositiontoobligethemtoaltertheirpremisesbuttheyareencouragedtoaddress
anyaccessissuesthatmayexistontheirpremisesonavoluntarybasis.Allnewcontractsrequirethe
postmasterorpostmistresstoprovideaccessiblepremises.
TariffsThefollowingisasummaryofthepricesforUSOservices(from�March2007).
Ireland&N.I. Letters(uptoC5)(<�00g)
LargeEnvelopes(<�00g)
Packets(<�00g)
Parcels(<0.5kg)
StandardPost 55c† 95c €2.�0 €6.25
RegisteredPost* €5.00 €5.00 €5.00 €�0.00
*The fee payable for the basic registered service covers compensation up to a maximum of €320. Further compensation up to a limit of €1,500 is available for €4 and up to a limit of €2,000 for €5 based on declared value at time of posting.
†Where the customer pays by meter frank or Ceadúnas, a 1c payment-method discount for the letter rate applies i.e. a price of 54c
Elsewhere <50g <50g <50g <0.5kg
StandardPost 78c €�.45 €2.60 €�7.50UK€25.00Europe€2�.00ROW
RegisteredPost* €4.93 €5.60 €6.75 €22.00UK€30.00Europe€26.00ROW
*Availability of service dependent on postal administration in destination country. Compensation up to €320 in UK; €150 in Europe; €100 for parcels and €35 for letters outside Europe
AdditionalinformationinrelationtoservicesprovidedbyAnPostisavailablefromAnPostCustomer
ServicesonCallSave�850575859orfromwww.anpost.ie
24 AnPostAnnualReport2006
Quality of ServiceThequalityperformancestandardforthedeliveryofintra-Communitycross-bordermailwassetbythe
EuropeanCommissionandwastransposedintoIrishlawunderRegulation�2(2)oftheRegulationsand
itsSchedule.Thequalitystandardforpostalitemsofthefasteststandardcategoryisasfollows:
D+3:85%ofitems;D+5:97%ofitems,
whereDreferstothedayofposting.
TheRegulationsrequireComRegtosetaquality-of-servicestandardfortheuniversalserviceand
thestandardsetfordomesticmailmustbecompatiblewiththoseforintra-Communitycross-border
services.ComReghassetaquality-of-servicetargetfordomesticsinglepieceprioritymailasfollows:
D+1:94%D+3:99.5%.
MonitoringofperformanceagainstthesetargetsiscarriedoutbyTNSmrbionbehalfofComReg.Details
ofthemostrecentresultsfromthismonitorareavailablefromComReg’swebsitewww.comreg.ie.
Customer ComplaintsIn2006,therewere3�5,642telephonecallsmadetotheAnPostCustomerServicesCentre.Mostof
thesewereroutineorgeneralenquiriesratherthancomplaints.
AnPostisrequiredtomaintainrecordsofcustomercomplaintstakingintoaccounttherelevant
EuropeanstandardIS:EN�40�2:2003.Thetableprovides,inrelationtomail,abreakdownofwritten
complaintsreceivedfromcustomersduring2006.Thetotalcontinuestorepresentaminutefractionof
theentiremailtraffichandledduringtheyear.
UniversalServicecontinued
AnPostAnnualReport2006 25
Writtencomplaintsreceivedfromcustomers:
Itemslostorsubstantiallydelayed 23,6�9
Itemsdamaged 756
Itemsarrivinglate �,475
Mailcollectionordelivery: Time of delivery Failure to make daily delivery to home or premises Collection times/Collection failures
62396
�2
Misdelivery 99
Accesstocustomerserviceinformation 27
Underpaidmail 25
Tariffsforsinglepiecemail/discountschemesandconditions 22
Registereditems 6,�90
Changeofaddress(Redirections) �0
Behaviourandcompetenceofpostalpersonnel 47
Howcomplaintsaretreated 7
Other(notincludedinabove) �,064
Total 33,8��
ComRegrequiresAnPosttopublishaCodeofPracticetodealwithCustomerComplaintsanda
proposalinthisregardwassubmittedtoComRegduring2006.
26 AnPostAnnualReport2006
During2006,thePhilatelicServiceissued45specialandcommemorativestamps.Theissuescovereda
widerangeofsubjectsreflectingcontemporaryevents,suchasIreland’shostingoftheRyderCup,and
notableanniversarieslikethe�9�6RisingandtheBattleoftheSommeaswellastopicsofperennial
interestlikeIreland’sInlandWaterwaysandNativeTrees.Technicalinnovationwasaparticularfeature
ofthe2006stampprogrammewiththeissueofIreland’sfirst“lenticular”stamps(whereholographic
technologygivestheimpressionofmovementonthestamp)fortheRyderCupandtheinclusionof
BrailleontheIrishGuideDogsfortheBlindstamp.
Afurtherfivestampswereissuedinthecurrentdefinitiveseries-theveryattractiveIrishWildFlowers
set.Inadditiontotheannualspecialandcommemorativeissues,thePhilatelicServicealsoissueda
YearPackandtheannualYearBook,abeautifulpublicationwhichgoesbehindthestampstogive,in
wordandpicture,aninformativeinsightintothesubjectscommemoratedonIreland’sstampsduring
theyear.
StampIssuesandPhilatelicPublications
AnPostAnnualReport2006 27
Index to the Financial Statements
28 ReportoftheDirectors
32 CorporateGovernance
40 StatementoftheDirectors
ontheAccountingSystems
4� StatementofDirectors’Responsibilities
42 ReportoftheIndependentAuditor
45 ReportoftheIndependentAuditor
ontheAccountingSystems
46 AccountingPolicies
50 ConsolidatedProfitandLossAccount
5� ConsolidatedStatementof
TotalRecognisedGainsandLosses
52 ConsolidatedBalanceSheet
53 CompanyBalanceSheet
54 ConsolidatedCashFlowStatement
55 NotestotheFinancialStatements
76 FiveYearFinancialSummary
77 OperationalStatistics
28 AnPostAnnualReport2006
ThedirectorshavepleasureinsubmittingtheirtwentythirdAnnualReporttogetherwiththeauditedfinancial
statementsoftheGroupfortheyearended3�December,2006,infulfilmentoftheirobligationsunderthe
CompaniesActs,�963to2006.
1. The Group and its Principal Activities
TheCompanyoperatesthenationalpostalserviceandmoneytransmissionservicesandprovidesagency
servicesforGovernmentDepartments,theNationalTreasuryManagementAgency,AnPostNational
LotteryCompanyandotherbodies.
OneordinaryshareisheldbytheMinisterforFinanceandtheremainderoftheissuedsharecapitalisheld
bytheMinisterforCommunications,MarineandNaturalResources.
Detailsoftheactivitiescarriedonbysubsidiary,associatedandjointventureundertakings,togetherwith
theinformationrequiredbySection�58oftheCompaniesAct,�963,aregiveninnote24tothefinancial
statements.
2. Results
Detailsoftheresultsfortheyeararesetoutintheconsolidatedprofitandlossaccountonpage50andin
therelatednotestothefinancialstatements.Thedirectorsdonotproposethepaymentofadividendfor
theyear.
3. Business Review
TheinformationrequiredbyRegulation37oftheEuropeanCommunities(Companies:GroupAccounts)
Regulations,�992,isincludedintheinformationgivenonpages8to25.
Asdescribedtherein,theperformanceoftheGroupandCompanyinthecurrentyearhasbeen
satisfactorywithanoperatingprofitbeforeexceptionalitemsof€�4.7m.Theprofitforthefinancial
yearwas€75.7mandisinclusiveofanexceptionalprofitondisposalofassetsof€94.7m,exceptional
costsof€20.0mforpaymentofretrospectivepayawardsand€�3.9minestablishingafinancialservices
jointventurewithFortisBank.Furtherdetailsoftheseexceptionalitemsaregiveninnote4tothe
financialstatements.Actuarialgainsonpostemploymentplansamountedto€��8.�mresultingintotal
recognisedgainsof€�93.8m.TheGrouphadnetassetsof€�25.3mat3�December2006compared
tonetliabilitiesof€68.5mat3�December2005.Thesefiguresincludeapensionliabilityof€�93.2m
(2005:€307.8m),seenote�8forfurtherdetails.
ReportoftheDirectors
AnPostAnnualReport2006 29
Inmonitoringperformance,thedirectorsandmanagementhaveregardtoarangeofkeyperformance
indicators(KPIs),includingthefollowing:
KPI Performancein2006
Performancein2005
Financial–consolidatedresults
Operatingprofitbeforeexceptionalitemsasapercentageofturnover 1.8% 2.2%
Staffandpostmasters’costsbeforeexceptionalitemsasapercentageofturnover
68.2% 68.3%
Otheroperatingcostsasapercentageofturnover 30.0% 29.5%
Netcashinflowfromoperatingactivities €37.1m €40.9m
Staff
AnPoststaff–FullTimeEquivalent–atyearend 8,868 8,966
Casualstaff–FullTimeEquivalent 423 377
Overtimehours–FullTimeEquivalent 2,006 �,953
Total–FullTimeEquivalent 11,297 ��,296
Mailbusiness
Letterscorerevenueindex 4.2% 4.0%
Qualityofservice(national)–NextdaydeliveryofsinglepieceprioritymailQuarter3*
74% 74%
Retailbusiness
Socialwelfaretransactions 36.6m 37.7m
BillPaymenttransactions 25.5m 24.8m
TVLicencesales(thousands) 1,339k �,273k
InvestmentProducts–netfundinflow €143.0m €�73.0m
PostOfficeSavingsBank(incl.SSIA)–netfundinflow €43.0m €�72.7m
BurglariesandRobberies–numberofincidents 103 �92
CustomerService
Writtencomplaints 33,811 36,478
Telephoneenquiries(routineandcomplaints) 315,642 276,464
*Figures as per ComReg Monitor. Full year 2006 figures are not yet available, (2005: 73%).
30 AnPostAnnualReport2006
Inaccordancewiththerequirementtoanalysethekeyrisksanduncertaintiesfacingthefuture
developmentoftheGroupandCompany,thefollowinghavebeenidentified:
• competitivethreatstomailsrevenue;
• failuretofullyimplementagreedChangeProgrammes;
• theimpactofhighlevelsofabsenteeismonthebusiness;
• failuretoachieveandmaintainqualityofservicetargets;
• potentiallossofsignificantagencyservices;
• electronicsubstitutionformail;
• thearrangementsfordownstreamaccesstomailsservices;
• failuretoresolveindustrialrelationsissuesthroughagreedprocesses;
• thesuccessoftheAnPostFinancialServicesStrategy.
Thedirectorshaveanalysedtheseandotherrisksandappropriateprogrammesareinplacetomanage
andcontroltheserisks.TheCorporateGovernanceStatementonpages32to39setsoutthepoliciesand
approachtorisksandtherelatedinternalcontrolproceduresandresponsibilities.
4. Directors, Secretary and their Interests
ThefollowingchangeshavetakenplaceinthecompositionoftheBoardsincethedateoftheprevious
reportofthedirectors:
Ms.CiaraHurleyappointed3April,2006
Mr.BrianMcConnellappointed3April,2006
Mr.DonalCurtinretired�3July,2006
Mr.DonalConnellappointed�4August,2006
Mr.AlanSloaneretired3�December,2006,reappointed�January,2007.
Thedirectorsandsecretarywhoheldofficeat3�December,2006hadnointerestsinthesharesin,or
debenturesof,theCompanyoranyGroupcompany.
5. Employees
TheGroupisanequalopportunitiesemployer.Allapplicationsforemploymentaregivenfullandfair
consideration,dueregardbeinggiventotheaptitudeandabilityoftheindividualandtherequirements
ofthepositionconcerned.Allpersonsaretreatedonequaltermsasregardstraining,careerdevelopment
andpromotion.
TheGroupiscommittedtothehigheststandardsofsafetyandhealthpracticesinordertomeetthe
requirementsandfutureregulationsoftheSafety,HealthandWelfareatWorkAct,2005.Healthand
safetymanagementco-ordinatethepoliciesoutlinedintheGroup’sSafetyStatement,whichisdesigned
toensureasafeplaceandsystemofworkforallGroupemployees.
ReportoftheDirectorscontinued
AnPostAnnualReport2006 3�
6. Prompt Payment of Accounts
ThepolicyofAnPostistocomplywiththerequirementsofrelevantpromptpaymentofaccounts
legislation.TheGroup’sstandardtermsofcredittaken,unlessotherwisespecifiedinspecificcontractual
arrangements,are30days.Appropriateinternalfinancialcontrolsareinplace,includingclearlydefined
rolesandresponsibilitiesandmonthlyreportingandreviewofpaymentpractices.Theseprocedures
providereasonablebutnotabsoluteassuranceagainstmaterialnon-compliancewiththeregulations.
7. Accounting Records
ThedirectorsbelievethattheyhavecompliedwiththerequirementsofSection202oftheCompanies
Act,�990withregardtobooksofaccountbyengagingaccountingpersonnelwithappropriateexpertise
andbyprovidingadequateresourcestothefinancefunction.ThebooksofaccountoftheCompanyare
maintainedattheCompany’spremisesattheGeneralPostOffice,O’ConnellStreet,Dublin�.
8. Auditors
InaccordancewithSection�60(2)oftheCompaniesAct,�963,theauditors,KPMG,Chartered
Accountants,willcontinueinoffice.
OnbehalfoftheBoard
MargaretMcGinley
Chairperson
DonalConnell
Director
22March,2007
32 AnPostAnnualReport2006
MaintaininghighstandardsofcorporategovernancecontinuestobeapriorityforthedirectorsofAnPost.
Indevelopingitscorporategovernancepolicy,theBoardhassoughttogiveeffectbothtotheCodeof
PracticefortheGovernanceofStateBodies,issuedbytheDepartmentofFinance,andtotherelevantmain
andsupportingprinciplesofgoodgovernanceoutlinedinthe2003CombinedCodeissuedbytheUnited
Kingdom’sFinancialReportingCouncil.WhiletheprovisionsoftheCombinedCodeareofdirectrelevance
onlytolistedcompanies,theBoarddoesfeelthattheirapplication,whereappropriate,assistsAnPostinits
compliancewithbestcorporategovernancepractice.
Thedirectorsareaccountabletotheshareholdersforgoodcorporategovernanceandthisreportaddresses
howtheCodeofPracticefortheGovernanceofStateBodiesandtherelevantmainandsupportingprinciples
ofthe2003CombinedCodehavebeenappliedwithinAnPost.
The Board
TheGroupiscontrolledthroughitsBoardofdirectors.TheBoard’smainrolesaretooverseetheoperationof
theGroup,toprovideleadership,toapprovestrategicobjectivesandtoensurethatthenecessaryfinancialand
otherresourcesaremadeavailabletoenablethoseobjectivestobemet.TheBoardmeetsonamonthlybasis
andcertainmattersarespecificallyreservedtotheBoardforitsdecision.
ThespecificresponsibilitiesreservedtotheBoardinclude:settingGroupstrategyandapprovinganannual
budgetandmedium-termprojections;reviewingoperationalandfinancialperformance;approvingmajor
capitalexpenditure;reviewingtheGroup’ssystemsoffinancialcontrolandriskmanagement;ensuringthat
appropriatemanagementdevelopmentandsuccessionplansareinplace;reviewingtheenvironmental,health
andsafetyperformanceoftheGroup;andmaintainingsatisfactorycommunicationwithshareholders.
TheBoardhasdelegatedthefollowingresponsibilitiestomanagement:thedevelopmentandrecommendation
ofstrategicplansforconsiderationbytheBoardthatreflectthelonger-termobjectivesandpriorities
establishedbytheBoard;implementationofthestrategiesandpoliciesoftheGroupasdeterminedbythe
Board;monitoringoftheoperatingandfinancialresultsagainstplansandbudgets;prioritisingtheallocation
oftechnicalandhumanresources;anddevelopingandimplementingriskmanagementsystems.
The Roles of the Chairperson and the Chief Executive
TheChairpersonleadstheBoardinthedeterminationofitsstrategyandintheachievementofitsobjectives.
TheChairpersonisresponsiblefororganisingthebusinessoftheBoard,ensuringitseffectivenessandsetting
itsagenda.TheChairpersonfacilitatestheeffectivecontributionofalldirectorsandconstructiverelations
betweentheexecutivedirectorandtheotherdirectors,ensuresthatdirectorsreceiverelevant,accurateand
timelyinformationandmanageseffectivecommunicationwithshareholders.
TheChiefExecutivehasdirectchargeoftheGrouponadaytodaybasisandisaccountabletotheBoardfor
thefinancialandoperationalperformanceoftheGroup.
Senior Independent Director
TheBoardhasconsideredthequestionofappointingoneofitsmemberstobeaSeniorIndependentDirector,
inadditiontotheChairperson,butcontinuestobelievethatthisrecommendationoftheCombinedCodeis
notapplicableinthelightofAnPost’slegalstructure.
CorporateGovernance
AnPostAnnualReport2006 33
Directors and Directors’ Independence
AlldirectorsareappointedtotheBoardbytheMinisterforCommunications,MarineandNaturalResources
andtheirconditionsofappointmentandfeesaresetoutinwriting.Employeedirectorsareelectedin
accordancewiththeWorkerParticipation(StateEnterprises)Acts,�977to�993foratermoffouryears.The
postmasterdirectoriselectedinaccordancewithSection8�ofthePostalandTelecommunicationsServices
Act,�983foratermofthreeyears.Allotherdirectorsareappointedforafixedterm,usuallyfiveyears.
TheBoardiscurrentlycomprisedoffifteendirectorsviz:theChiefExecutive,fiveemployeedirectors,one
postmasterdirectorandeightnon-executivedirectors.Thenamesofthedirectorstogetherwiththeir
biographicaldetailsaresetoutonpages4and5.ThepositionsofChairpersonandChiefExecutiveareheld
bydifferentpeople.GivenitslegalstatusasaStateCompanyandtheresponsibilityofitsprincipalshareholder
intheappointmentofdirectors,theBoardbelievesthatthecriterianormallyusedbytheBoardofalisted
companyinconsideringtheindependenceofitsdirectorsdonotapplyinAnPost’scircumstances.TheBoard,
consequently,hasnotevaluatedtheindependenceofitsdirectorsagainstthecriteriasetoutinthe2003
CombinedCode.
The2003CombinedCoderequirestheChairpersontoholdmeetingswiththenon-executivedirectorswithout
theexecutivedirectorbeingpresent.TheBoardhasputinplaceprocedureswherebyitwillmeetwithoutthe
ChiefExecutivebeingpresent.
DirectorshavetherighttoensurethatanyunresolvedconcernstheymayhaveabouttherunningoftheGroup
oraboutaparticularcourseofactionarerecordedintheBoardminutes.Iftheyhaveanysuchconcerns,they
may,onresignation,provideawrittenstatementtotheChairperson,forcirculationtotheBoard.
ThedirectorsaregivenaccesstoindependentprofessionaladviceattheGroup’sexpensewheretheydeemit
necessarytodischargetheirresponsibilitiesasdirectors.
Professional Development
Onappointment,allnewdirectorstakepartinaninductionprogrammewhentheyreceiveinformation
abouttheGroup,theroleoftheBoardandthemattersreservedforitsdecision,thetermsofreferenceand
membershipoftheprincipalBoardandBoardCommittees,theGroup’scorporategovernancepracticesand
procedures,includingtheresponsibilitiesdelegatedtoGroupseniormanagement,andthelatestfinancial
informationabouttheGroup.Thiswilltypicallybesupplementedbymeetingswithkeyseniorexecutives.
Throughouttheirperiodinoffice,thedirectorsarecontinuallyupdatedontheGroup’sbusiness,the
competitiveandregulatoryenvironmentsinwhichitoperates,corporatesocialresponsibilitymattersand
otherchangesaffectingtheGroupandthepostalindustryasawhole,bywrittenbriefingsandmeetingswith
seniorexecutives.Directorsarealsoadvisedonappointmentoftheirlegalandotherdutiesandobligationsas
adirector,bothinwritingandinface-to-facemeetingswiththeCompanySecretary.Theyarealsoupdatedon
changestothelegalandgovernancerequirementsoftheGroupanduponthemselvesasdirectors.
34 AnPostAnnualReport2006
Performance Evaluation
TheBoardhasadoptedandisimplementingaprocessfortheannualevaluationofitsownperformance
andthatofitsprincipalCommittees.Itconsidersthattheintroductionofanyfurtherevaluationofindividual
directorswouldbeinappropriategiventhemannerofappointmentofdirectors,theshareholdingstructure
andexistingBoardprocedures.
The Company Secretary
TheCompanySecretaryisafulltimeemployeeofAnPost.TheCompanySecretaryisresponsibleforadvising
theBoardthroughtheChairpersononallgovernancematters.Alldirectorshaveaccesstotheadviceand
servicesoftheCompanySecretary.TheCompany’sArticlesofAssociationprovidethattheappointmentand
removaloftheCompanySecretaryisamatterforthefullBoard.
Information
RegularreportsandpapersarecirculatedtothedirectorsinatimelymannerinpreparationforBoardand
Committeemeetings.Thesepapersaresupplementedbyinformationspecificallyrequestedbythedirectors
fromtimetotime.
Thedirectorsreceivemonthlymanagementaccountsandregularmanagementreportsandinformationwhich
enablethemtoscrutinisetheGroup’sandmanagement’sperformanceagainstagreedobjectives.
Relations with Shareholders
TheBoardandmanagementmaintainanongoingdialoguewiththeCompany’sshareholdersonstrategic
issues.
TheChairpersonandtheChiefExecutivegivefeedbacktotheBoardonissuesraisedwiththembythe
shareholders.AlldirectorsnormallyattendtheAnnualGeneralMeetingandshareholdersareinvitedtoask
questionsduringthemeetingandtomeetdirectorsaftertheformalproceedingshaveended.
Internal Control
Anongoingprocessexistsforidentifying,evaluatingandmanagingthesignificantrisksfacedbytheGroup.
Thisprocess,whichisbasedontheCombinedCodeGuidancefordirectors,issuedbytheInstituteof
CharteredAccountantsinEnglandandWales(theTurnbullGuidance),isperiodicallyreviewedbythedirectors
andhasbeeninplacethroughouttheaccountingperiodanduptothedatethefinancialstatementswere
approved.
InaccordancewiththeguidanceoftheTurnbullcommittee,thedirectorsareresponsiblefortheGroup’s
systemofinternalcontrol,shouldsetappropriatepoliciesoninternalcontrol,shouldseekregularassurance
thatwillenablethemtosatisfythemselvesthatthesystemisfunctioningeffectivelyandshouldensurethatthe
systemofinternalcontroliseffectiveinmanagingrisksinthemannerwhichithasapproved.Suchasystemis
designedtomanageratherthaneliminatebusinessrisksandcanprovideonlyreasonableratherthanabsolute
assuranceagainstmaterialmisstatementorloss.
CorporateGovernancecontinued
AnPostAnnualReport2006 35
ThedirectorshavecontinuedtoreviewtheeffectivenessoftheGroup’ssystemoffinancialandnon-financial
controlsduring2006,includingoperationalandcompliancecontrols,riskmanagementandtheGroup’s
highlevelinternalcontrolarrangements.Thesereviewshaveincludedanassessmentofinternalcontrolsby
management,managementassuranceofthemaintenanceofcontrols,reportsfromtheinternalauditorsand
reportsfromtheexternalauditoronmattersidentifiedinthecourseofitsstatutoryauditwork.
TheGroupviewsthecarefulmanagementofriskasakeymanagementactivity.Managingbusinessriskto
deliveropportunitiesisakeyelementofallactivities.Thisisdoneusingasimpleandflexibleframeworkwhich
providesaconsistentandsustainedwayofimplementingtheGroup’svalues.Thesebusinessrisks,which
maybestrategic,operational,reputational,financialorenvironmental,shouldbeunderstoodandvisible.The
businesscontextdeterminesineachsituationthelevelofacceptableriskandcontrols.
Managementisresponsiblefortheidentificationandevaluationofsignificantrisksandforthedesignand
implementationofappropriateinternalcontrols.Theserisksareassessedonanongoingbasisandarederived
fromavarietyofexternalandinternalsources.ManagementreportsregularlytotheBoardonthekeyrisks
inherentinthebusinessandonthewayinwhichtheserisksaremanaged.Managementalsoreportstothe
BoardonanysignificantchangesintheGroup’sbusinessandonanyrisksassociatedwithsuchchanges.The
processusedtoidentifyandmanagekeyrisksisanintegralpartoftheinternalcontrolenvironment.
Thekeyprocedureswhichthedirectorshaveestablishedwithaviewtoprovidingeffectiveinternalcontrolare
asfollows:
• AclearfocusonbusinessobjectivesasdeterminedbytheBoardafterconsiderationofthestatutory
responsibilitiesandriskprofileoftheGroup’sbusiness.
• Adefinedorganisationalstructurewithclearlinesofresponsibility,delegationofauthorityand
segregationofdutiesdesignedtofosterabeneficialcontrolenvironment.
• Ariskmanagementprocesswhichconsidersthestrategyanddevelopmentofthebusinessinthecontext
oftheannualbudgetprocesswhenfinancialplansandperformancetargetsaresetandreviewedbythe
BoardinlightoftheGroup’soverallobjectives.
• AreportingandcontrolsystemwhichensuresthatindividualbusinessesreporttotheBoardonan
ongoingbasisontheirprogressinachievingobjectives.Thesystemforreportingcoversbothoperational
andfinancialperformance,occursonatimelybasisandensuresthatbudgetaryvariancesareexamined
andaddressedpromptly.
• Aninternalauditfunctionwhichmonitorscompliancewithpoliciesandtheeffectivenessofinternal
controlwithintheGroup’sbusinesses.Theworkingoftheinternalauditfunctionisfocusedontheareas
ofgreatestrisktotheGroup.
• ABoardlevelcommittee,theAuditandSecurityCommittee,whichapprovesinternalandexternalaudit
plansanddealswithsignificantcontrolissuesraisedbyinternalandexternalauditors.
36 AnPostAnnualReport2006
Attendance at Meetings of the Board, the Remuneration Committee and the Audit and Security Committee
ThirteenBoardmeetingswereheldduringtheyearended3�December,2006andtheattendancerecordof
eachdirectorissetoutinthefollowingtable:
Name Eligibletoattend Attended
MargaretMcGinley �3 �3
PatrickCompton �3 �2
JerryCondon �3 �2
DonalConnell 3 3
DonalCurtin 8 8
PatrickDavoren �3 ��
ThomasDevlin �3 ��
LouiseEnglish �3 �2
CiaraHurley 9 6
JamesHyland �3 �2
TerryKelleher �2 ��
BrianMcConnell 9 8
AliceO’Flynn �3 �2
JohnQuinlivan �3 �0
AlanSloane �3 �3
PeterWyer �3 ��
EightmeetingsoftheRemunerationCommitteewereheldduringtheyearended3�December,2006andthe
attendancerecordofeachdirector,eligibletoattend,issetoutinthefollowingtable:
Name Eligibletoattend Attended
MargaretMcGinley 8 8
AliceO’Flynn 8 8
PeterWyer 8 7
SevenmeetingsoftheAuditandSecurityCommitteewereheldduringtheyearended3�December,2006
andtheattendancerecordofeachdirector,eligibletoattend,issetoutinthefollowingtable:
Name Eligibletoattend Attended
PatrickDavoren 7 7
JamesHyland 7 7
AliceO’Flynn 7 6
CorporateGovernancecontinued
AnPostAnnualReport2006 37
Directors’ Remuneration
TheremunerationoftheChiefExecutiveisdeterminedinaccordancewiththeguidelinesissuedbythe
DepartmentofFinancefordeterminingtheremunerationofChiefExecutiveOfficersofCommercialState
BodiesandissubjecttotheapprovaloftheRemunerationCommitteeoftheBoardofAnPostandthe
MinisterforCommunications,MarineandNaturalResources.Theobjectiveistomaintaintheremunerationof
theChiefExecutiveatalevelwhichisattractivetotheindividualwhile,atthesametime,representingvalue
formoneyfortheGroup.AproportionoftheChiefExecutive’sremunerationisperformancerelatedand,in
thisway,islinkedtotheGroupandindividualobjectives.
FeesforalldirectorsaredeterminedbytheMinisterforCommunications,MarineandNaturalResourceswith
theapprovaloftheMinisterforFinance.
Thedisclosuresmadeinthesefinancialstatementsrelatingtodirectors’emolumentsandpensioninformation
arethoserequiredundertheIrishCompaniesActs,�963to2006.
Remuneration Committee
TheRemunerationCommitteeiscomprisedofthreenon-executivedirectors.MargaretMcGinleyactsas
ChairpersonoftheCommittee.Whennecessary,non-Committeemembersareinvitedtoattend.The
Committee’sprincipalresponsibilitiesare:
• todetermine,onbehalfoftheBoard,theremunerationandothertermsandconditionsofemploymentof
theChiefExecutive,subjecttocompliancewithGovernmentpolicyrelatingthereto;
• todetermine,onbehalfoftheBoard,thepaystructuresandtermsandconditionsofothersenior
personnel(asidentifiedbytheChairpersonoftheBoard);
• tobeinformedofsignificantdevelopmentsinindustrialrelationsandtoreviewindustrialrelationspolicies
toensurethestrategyisconsistentwiththeachievementofthebusinessplansofAnPostand,onbehalf
oftheBoard,totakedecisionsonsuchmatters;
• toact,onbehalfoftheBoard,andtakedecisionsrelatedtopayandpayrelatedmatters,asthe
ChairpersonoftheBoardshalldetermine;
• toact,onbehalfoftheBoard,andtakesignificantdecisionsonmatterssuchasremunerationpolicy,
benefits,staffgrading,thirdpartyrecommendationsandrelatedissues.
Audit and Security Committee
TheAuditandSecurityCommitteeiscomprisedoftwonon-executivedirectorsandoneemployeedirector.
ItsChairman,JamesHyland,hasrecentandrelevantfinancialexperience.Whennecessary,non-Committee
membersareinvitedtoattend.Underitstermsofreference,theCommitteeistoassisttheBoardinfulfilling
itsresponsibilitiesbyprovidinganindependentreviewoffinancialreporting,bysatisfyingitselfastothe
effectivenessoftheCompany’sinternalcontrolsandastothesufficiencyoftheexternalandinternalaudits.
38 AnPostAnnualReport2006
TheCommitteeisresponsibleformonitoringtheeffectivenessoftheexternalauditprocessandmaking
recommendationstotheBoardinrelationtotheappointment,re-appointmentandremunerationofthe
externalauditors.ItisresponsibleforensuringthatanappropriaterelationshipbetweentheGroupandthe
externalauditorsismaintained,includingreviewingnon-auditservicesandfees.Asaresultofregulatory
orsimilarrequirements,itisnecessarytoemploytheGroup’sexternalauditorsforcertainauditrelatedand
non-auditservices.Inordertomaintaintheindependenceoftheexternalauditors,theAuditandSecurity
Committeehasdeterminedpoliciesastowhatauditrelatedandnon-auditservicescanbeprovidedbythe
Group’sexternalauditorsandtheapprovalprocessrelatedtotheseservices.Underthesepolicies,workofa
consultancynaturewillnotbeofferedtotheexternalauditorsunlessthereareclearefficienciesandvalue-
addedbenefitstotheGroupwhileensuringthattheobjectivityandindependenceoftheexternalauditorsis
maintained.TheAuditandSecurityCommitteemonitorstheleveloffeespaidtotheexternalauditors.
TheCommitteereviewsannuallytheGroup’ssystemsofinternalcontrolandtheprocessesformonitoringand
evaluatingtherisksfacingtheGroup.
TheCommitteealsoassistsand,whererelevant,makesrecommendationstotheBoardonthedischargingof
itsresponsibilitiesinrelationtosecurity.
TheCommitteemeetswithmanagement,aswellasprivatelywiththeexternalauditors.
In2006theAuditandSecurityCommitteedischargeditsresponsibilitiesby:
• reviewingtheGroup’sdraftfinancialstatementsfor2005priortoBoardapprovalandmeetingand
reviewingwiththeexternalauditorstheirreportsthereon;
• reviewingtheappropriatenessoftheGroup’saccountingpolicies;
• reviewingthepotentialimpactontheGroup’sfinancialstatementsofsignificantmattersarisingduring
theyear;
• reviewingtheresourcesofinternalaudit,approvingtheinternalauditplans,reviewinginternalaudit
reportsanddealingwithsignificantcontrolissuesraisedbytheinternalauditors;
• reviewingandapprovingtheauditfeeandreviewingnon-auditfeespayabletotheGroup’sexternal
auditors;
• reviewingtheexternalauditors’planfortheauditoftheGroup’sfinancialstatementsfor2006,
confirmationsofauditorindependenceandtheproposedauditfee,andapprovingthetermsof
engagementfortheaudit;
• reviewingthekeyriskstothebusinessandconsideringtheadequacyoftheGroup’ssystemofrisk
identificationandassessment;
CorporateGovernancecontinued
AnPostAnnualReport2006 39
• reviewinganannualreportontheGroup’ssystemsofinternalcontrolanditseffectiveness,reportingto
theBoardontheresultsofthereviewandreceivingregularupdatesonkeyriskareasoffinancialcontrol;
• reviewingsecuritypoliciesandproceduresfortheprotectionofstaff,postmastersandcustomersandfor
safeguardingassetsandtheimplementationofandcompliancewiththosepoliciesandprocedures.
TheGroupoperatesprocedurestoensurethatappropriatearrangementsareinplaceforemployeestobeable
toraise,inconfidence,mattersofpossibleimpropriety,withsuitablesubsequentfollow-upaction.Reporting
channelshavebeencreatedwherebyperceivedwrongdoingmaybereportedviapost,telephoneandemail,
anonymouslyifpreferred.
Nomination Committee
AsalltheauthorityregardingtheappointmentofdirectorsisvestedintheMinisterforCommunications,
MarineandNaturalResources,withtheconsentoftheMinisterforFinance,thematterofconstitutinga
NominationCommitteedoesnotrequireconsiderationbytheBoard.
Compliance Statement
Asnotedabove,indevelopingitscorporategovernancepolicy,theBoardhassoughttogiveeffectbothto
theCodeofPracticefortheGovernanceofStateBodies,issuedbytheDepartmentofFinance,andtothe
relevantmainandsupportingprinciplesofgoodgovernanceoutlinedinthe2003CombinedCodeissuedby
theUnitedKingdom’sFinancialReportingCouncil.
ThedirectorsconfirmthattheGrouphasbeenincompliancewiththeCodeofPracticefortheGovernance
ofStateBodiesandtherelevantmainandsupportingprinciplesofthe2003CombinedCodethroughoutthe
financialyearunderreview,withtheexceptionofanumberofareasnotedabovewherevoluntarycompliance
withprovisionsofthe2003CombinedCodeisnot,giventhemannerofappointmentofdirectors,thelegal
andshareholdingstructureoftheCompanyandexistingBoardprocedures,consideredappropriate.
Going Concern
ThedirectorshavereviewedtheGroup’sbusinessplanandotherrelevantinformationandhaveareasonable
expectationthattheGroupwillcontinueinoperationalexistencefortheforeseeablefuture.Forthisreason,
thedirectorscontinuetoadoptthegoingconcernbasisinpreparingthefinancialstatements.
OnbehalfoftheBoard
MargaretMcGinley
Chairperson
DonalConnell
Director
22March,2007
40 AnPostAnnualReport2006
UndertheEuropeanCommunities(PostalServices)Regulations,2002(‘theRegulations’),theCommissionfor
CommunicationsRegulation,(ComReg),wasdesignatedasthenationalregulatoryauthorityforthepostalsector
andAnPostwasdesignatedasaUniversalServiceprovider.
UnderthoseRegulations,theaccountingproceduresofAnPostarerequiredtobeconductedinaccordance
withdirectionslaiddownbyComRegandwithcertainprovisionsintheRegulations.On20September,200�,
ComRegissuedadirectiontoAnPostsettingouttheregulator’sdetailedrequirementsinrelationtothe
accountingsystemsofAnPost(‘theDirection’).ComRegissuedanewaccountingdirectiontoAnPoston8
December,2006thatappliestoaccountingperiodsbeginningonorafter�January,2007.
ThedirectorsacknowledgetheirresponsibilityforcompliancewiththeaccountingprovisionsoftheRegulations
andwiththeDirectionandthefollowingstatementdescribeshowAnPostappliedtherelevantprovisionsofthe
RegulationsandtheDirectionfortheaccountingyearbeginningon�January,2006.
Financial Records and Accounting Systems
ThefinancialrecordsandaccountingsystemsmaintainedbyAnPostcontainsufficientdetailasrequiredbythe
DirectiontoenablemanagementtoensurethattheycomplywiththeaccountingprovisionsoftheRegulations.
Separateaccountsaremaintainedforeachoftheserviceswithinthereservedandnon-reservedsectors.
Separated Accounts
SegmentalprofitandlossaccountsandstatementsofnetassetsarebeingpreparedforsubmissiontoComReg
fortheyearended3�December,2006withinthespecifieddeadlineof�9weeksfromtheendofthefinancial
year.
Management Accounting Manual
Adetailedaccountingmanualhasbeenpreparedshowingtherangeandscopeofdatatobecollectedforthe
purposeofcomplyingwiththeRegulationsandtheDirectionandthebasisonwhichthedataistobeallocated/
apportionedbetweenservices.ArevisedmanualwassubmittedtoComRegin2006.
Themanualreflectsthedetailedrevenuedeterminationandcostallocationandapportionmentprinciplesand
rulessetoutintheRegulationsandtheDirection.
Statement of Compliance
Basedontheabovestepsandactions,thedirectorsbelievethatAnPosthascompliedwiththerelevant
provisionsoftheRegulationsandwiththeDirectionofComReginrelationtotheAccountingSystemsofAn
Postfortheyearended3�December,2006.
OnbehalfoftheBoard
MargaretMcGinleyChairperson
DonalConnellDirector
22March,2007
StatementoftheDirectorsoncompliancewiththeEuropeanCommunities(PostalServices)Regulations2002concerningcostaccountingsystemsandwiththeRegulator’sDirectionontheAccountingSystemsofAnPost
AnPostAnnualReport2006 4�
ThedirectorsareresponsibleforpreparingtheAnnualReportandfinancialstatements,inaccordancewith
applicablelawandregulations.
CompanylawrequiresthedirectorstoprepareGroupandparentCompanyfinancialstatementsforeach
financialyear.UnderthatlawthedirectorshaveelectedtopreparetheGroupandparentCompanyfinancial
statementsinaccordancewithGenerallyAcceptedAccountingPracticeinIreland,comprisingapplicablelaw
andtheaccountingstandardsissuedbytheAccountingStandardsBoardandpromulgatedbytheInstituteof
CharteredAccountantsinIreland.
TheGroupandparentCompanyfinancialstatementsarerequiredbylawtogiveatrueandfairviewofthe
stateofaffairsoftheGroupandtheparentCompanyandoftheprofitorlossoftheGroupforthatperiod.
InpreparingeachoftheGroupandparentCompanyfinancialstatements,thedirectorsarerequiredto:
• selectsuitableaccountingpoliciesandthenapplythemconsistently;
• makejudgementsandestimatesthatarereasonableandprudent;and
• preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethatthe
Groupwillcontinueinbusiness.
Thedirectorsareresponsibleforkeepingproperbooksofaccountwhichdisclosewithreasonableaccuracy
atanytimethefinancialpositionoftheGroupandCompanyandtoenablethemtoensurethatthefinancial
statementscomplywiththeCompaniesActs,�963to2006.Theyarealsoresponsiblefortakingsuchstepsas
arereasonablyopentothemtosafeguardtheassetsoftheGroupandtopreventanddetectfraudandother
irregularities.
ThedirectorsarealsoresponsibleforpreparingaDirectors’Reportthatcomplieswiththerequirementsofthe
CompaniesActs,�963to2006.
Thedirectorsareresponsibleforthemaintenanceandintegrityofthecorporateandfinancialinformation
includedontheCompany’swebsite.LegislationintheRepublicofIrelandgoverningthepreparationand
disseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.
OnbehalfoftheBoard
MargaretMcGinley
Chairperson
DonalConnell
Director
22March,2007
StatementofDirectors’Responsibilities
42 AnPostAnnualReport2006
WehaveauditedtheGroupandparentCompanyfinancialstatements(the‘financialstatements’)ofAn
Postfortheyearended3�December,2006whichcomprisetheConsolidatedProfitandLossAccount,
theConsolidatedandCompanyBalanceSheets,theConsolidatedCashFlowStatement,theConsolidated
StatementofTotalRecognisedGainsandLossesandtherelatednotes.Thesefinancialstatementshavebeen
preparedundertheaccountingpoliciestherein.
ThisreportismadesolelytotheCompany’smembers,asabody,inaccordancewithSection�93ofthe
CompaniesAct,�990.OurauditworkhasbeenundertakensothatwemightstatetotheCompany’smembers
thosematterswearerequiredtostatetotheminanauditors’reportandfornootherpurpose.Tothefullest
extentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandthe
Company’smembersasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.
Respective Responsibilities of Directors and Auditor
ThedirectorsresponsibilitiesforpreparingtheAnnualReportandthefinancialstatementsinaccordancewith
applicablelawandtheaccountingstandardsissuedbytheAccountingStandardsBoardandpromulgatedby
theInstituteofCharteredAccountantsinIreland(GenerallyAcceptedAccountingPracticeinIreland),areset
outintheStatementofDirectors’Responsibilitiesonpage4�.
Ourresponsibilityistoauditthefinancialstatementsinaccordancewithrelevantlegalandregulatory
requirementsandInternationalStandardsonAuditing(UKandIreland).
Wereporttoyououropinionastowhetherthefinancialstatementsgiveatrueandfairviewinaccordance
withGenerallyAcceptedAccountingPracticeinIrelandandareproperlypreparedinaccordancewiththe
CompaniesActs,�963to2006,andtheEuropeanCommunities(Companies:GroupAccounts)Regulations,
�992.Wealsoreporttoyouwhetherinouropinion:properbooksofaccounthavebeenkeptbythe
company;whetheratthebalancesheetdate,thereexistsafinancialsituationrequiringtheconveningof
anextraordinarygeneralmeetingofthecompany;andwhetherinouropiniontheinformationgiveninthe
Directors’Reportisconsistentwiththefinancialstatements.Inaddition,westatewhetherwehaveobtained
alltheinformationandexplanationsnecessaryforthepurposesofouraudit,andwhetherthecompany’s
financialstatementsareinagreementwiththebooksofaccount.
Wealsoreporttoyouif,inouropinion,informationspecifiedbylawregardingdirectors’remunerationand
transactionswiththeGroupisnotdisclosed.
Wereview,attherequestofthedirectors,whether(�)thevoluntaryCorporateGovernancestatementon
pages32to39reflectstheGroup’scompliancewiththenineprovisionsofthe2003FRCCombinedCode
thattheListingRulesoftheIrishStockExchangespecifiesforreviewbyauditorsand(2)thestatementonthe
systemofinternalcontrolonpages34and35reflectsthegroup’scompliancewiththeprovisionofTheCode
ofBestPracticefortheGovernanceofStateBodiesthatisspecifiedforreviewbyauditorsandwereportif
thosestatementsdonot.WearenotrequiredtoconsiderwhethertheBoard’sstatementsoninternalcontrol
coverallrisksandcontrols,orformanopinionontheeffectivenessoftheGroup’scorporategovernance
proceduresoritsriskandcontrolprocedures.
ReportoftheIndependentAuditortotheMembersofAnPost
AnPostAnnualReport2006 43
WereadtheotherinformationcontainedintheAnnualReportandconsiderwhetheritisconsistentwiththe
auditedfinancialstatements.ThisotherinformationcomprisesonlytheDirectors’Report,theChairperson’s
Statement,theChiefExecutive’sReview,theFinancialReview,theCorporateGovernanceStatementandthe
FiveYearFinancialSummary.Weconsidertheimplicationsforourreportifwebecomeawareofanyapparent
misstatementsormaterialinconsistencieswiththefinancialstatements.Ourresponsibilitiesdonotextendto
anyotherinformation.
Basis of Opinion
WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UKandIreland)issued
bytheAuditingPracticesBoard.Anauditincludesexamination,onatestbasis,ofevidencerelevanttothe
amountsanddisclosuresinthefinancialstatements.Italsoincludesanassessmentofthesignificantestimates
andjudgementsmadebythedirectorsinthepreparationofthefinancialstatementsandofwhetherthe
accountingpoliciesareappropriatetotheGroup’scircumstances,consistentlyappliedandadequately
disclosed.
Weplannedandperformedourauditsoastoobtainalltheinformationandexplanationswhichwe
considerednecessaryinordertoprovideuswithsufficientevidencetogivereasonableassurancethatthe
financialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorotherirregularityor
error.Informingouropinionwealsoevaluatedtheoveralladequacyofthepresentationofinformationinthe
financialstatements.
Opinion
Inouropinion,thefinancialstatements:
• giveatrueandfairview,inaccordancewithGenerallyAcceptedAccountingPracticeinIreland,ofthe
stateofaffairsoftheGroupandtheCompanyat3�December,2006andoftheprofitoftheGroupfor
theyearthenended;and
• havebeenproperlypreparedinaccordancewiththeCompaniesActs,�963to2006andtheEuropean
Communities(Companies:GroupAccounts)Regulations,�992.
Wehaveobtainedalltheinformationandexplanationsweconsiderednecessaryforthepurposesofouraudit.
Inouropinion,properreturnsadequateforouraudithavebeenreceivedfrombranchesoftheCompanynot
visitedbyus.Inouropinion,properbooksofaccounthavebeenkeptbytheCompanyandthebalancesheet
oftheCompanyat3�December,2006isinagreementtherewith.
Inouropinion,theinformationgiveninthereportofthedirectorsonpages28to3�isconsistentwiththe
financialstatements.
44 AnPostAnnualReport2006
ThenetassetsoftheCompany,asstatedinthebalancesheetonpage53aremorethanhalfoftheamount
ofitscalledupsharecapitaland,inouropinion,onthatbasistheredidnotexistat3�December,2006a
financialsituationwhichunderSection40(�)oftheCompanies(Amendment)Act�983wouldrequirethe
conveningofanextraordinarygeneralmeetingoftheCompany.
CharteredAccountants
Registered Auditor
�StokesPlace
St.Stephen’sGreen
Dublin2
22March,2007
ReportoftheIndependentAuditortotheMembersofAnPostcontinued
AnPostAnnualReport2006 45
Inadditiontoourauditofthefinancialstatements,wehavereviewedthedirectors’statementonpage40
concerningtheCompany’scompliance,fortheyearended3�December,2006,withtheaccountingprovisions
oftheRegulationsandwiththedirectiontoAnPostsettingouttheRegulator’sdetailedrequirementsin
relationtotheaccountingsystemsofAnPost(theDirection),issuedon20September,200�bythepostal
servicesregulator,ComReg,inrelationtotheaccountingsystemsofAnPost.
Respective Responsibilities of Directors and Auditor
ThedirectorsprepareanannualstatementofcompliancewiththeaccountingprovisionsoftheRegulation
andtheDirectionforwhichtheyareresponsible.Theobjectiveofourreviewistodrawattentiontonon-
compliancewiththerequirementsoftheaccountingprovisionsoftheRegulationsandwiththeDirection.
Ourreviewdoesnotconstituteanauditoftheseparatedaccounts.
Basis of Opinion
WecarriedoutourreviewinaccordancewiththegeneralprinciplesandguidanceoftheAuditingPractices
Board.
Opinion
BasedonenquiryofcertaindirectorsandofficersoftheCompanyandexaminationofrelevantdocuments,in
ouropinion,thedirectors’statementonpage40appropriatelyreflectstheCompany’scompliance,fortheyear
ended3�December,2006,withtheaccountingprovisionsoftheRegulationsandwiththeDirectiononthe
AccountingSystemsofAnPost,dated20September,200�issuedbyComReg.
CharteredAccountants
�StokesPlace
StStephen’sGreen
Dublin2
22March,2007
ReportoftheIndependentAuditortoAnPostoncompliancewiththeEuropeanCommunities(PostalServices)Regulations2002(theRegulations)concerningcostaccountingsystemsandwiththeRegulator’sDirection
46 AnPostAnnualReport2006
Thefollowingaccountingpolicieshavebeenappliedconsistentlyindealingwithitemswhichareconsidered
materialinrelationtotheGroup’sfinancialstatements.
1. Basis of Preparation
Thefinancialstatementsarepreparedunderthehistoricalcostconventionandinaccordancewith
applicablelawandIrishGenerallyAcceptedAccountingPracticewhichincludescompliancewiththe
financialreportingstandardsoftheAccountingStandardsBoardpromulgatedinIrelandbyTheInstituteof
CharteredAccountantsinIreland.
2. Basis of Consolidation
TheconsolidatedfinancialstatementsincludethefinancialstatementsoftheCompanyanditssubsidiary
undertakings(exceptAnPostNationalLotteryCompany)madeuptotheendofthefinancialyear.The
resultsofsubsidiaryundertakingsacquiredordisposedofduringtheyearareincludedintheconsolidated
profitandlossaccountfromthedateofacquisitionoruptodateofdisposal.Upontheacquisitionofa
business,fairvaluesareattributedtotheidentifiablenetassetsacquired.Goodwillarisingonacquisitions
isdealtwithassetoutbelow.
Ifthefinancialyearofasubsidiaryundertakingendsatadatemorethanthreemonthsbeforethatofthe
parentCompany,theGroupfinancialstatementsconsolidateinterimfinancialstatementspreparedbythe
subsidiaryattheendoftheparent’sfinancialyear.
ThesoleactivityofAnPostNationalLotteryCompanyistheoperationoftheNationalLotteryunder
licencefromtheMinisterforFinanceinaccordancewiththeprovisionsoftheNationalLotteryAct,�986
andthesurplusgeneratedeachyearisentirelyattributabletotheNationalLotteryFundwhichismanaged
andcontrolledbytheMinister.Accordingly,AnPostdoesnotparticipateinthesurplusgeneratedby
AnPostNationalLotteryCompanyandneitherisitentitledtoexerciseanyrightsovertheassetsof
thatcompany.Onthisbasis,inaccordancewiththeprovisionsofFinancialReportingStandardNo.2
‘AccountingforSubsidiaryUndertakings’andtheEuropeanCommunities(Companies:GroupAccounts)
Regulations,�992,theconsolidatedfinancialstatementsdonotincorporatethefinancialstatementsof
AnPostNationalLotteryCompany.SeparatefinancialstatementsofAnPostNationalLotteryCompany
werepublishedon8March,2007.
Jointventureundertakings(jointventures)arethoseundertakingsoverwhichtheGroupexercisescontrol
jointlywithanotherparty.
Associatedundertakings(associates)arethoseundertakingsinwhichtheGrouphasaparticipating
interestintheequitycapitalandoverwhichitisabletoexercisesignificantinfluence.
Jointventuresandassociatesareaccountedforusingthegrossequitymethodandequitymethod
respectively.TheGroup’sshareoftheprofitslesslossesofjointventuresandassociatesareincludedinthe
consolidatedprofitandlossaccount.TheGroup’sinterestsintheirnetassetsorliabilitiesareincludedas
fixedassetinvestmentsintheconsolidatedbalancesheetatanamountrepresentingtheGroup’sshareof
thefairvaluesofthenetassetsatacquisitionplustheGroup’sshareofpostacquisitionretainedprofitsor
losses.
AccountingPolicies
AnPostAnnualReport2006 47
3. Turnover
Turnoverisrecognisedasservicesareprovidedandconsistofincomefrompostage,agencyservices,
poundagefromremittanceservices,courierandlogisticservices,consultancyservices,financialservices,
rentsandinterestincome.IncomefromagencyservicesisinrespectofservicesperformedforGovernment
Departments,theNationalTreasuryManagementAgency,AnPostNationalLotteryCompanyandother
bodies.Amountsheldintheperformanceoftheseagencyservicesareincludedinamountsheldintrustin
cashatbankandathand.
Postageincomeisrecognisedintheprofitandlossaccountassalesaremadewithanadjustmentfor
stampssoldandunusedandbalancesinpostagemetermachinesunusedattheyearend.
4. Saving Services
TheCompanyoperates,onanagencybasisandforanagreedremuneration,thePostOfficeSavingsBank
andothersavingsservicesfortheNationalTreasuryManagementAgency,whichactsonbehalfofthe
MinisterforFinance.
ThefundsareremittedregularlytotheNationalTreasuryManagementAgency.Theassetsandliabilitiesof
suchsavingsservicesvestintheMinisterforFinanceand,accordingly,arenotincludedinthesefinancial
statements.
5. Grants
Revenuebasedgrantsarecreditedtotheprofitandlossaccounttooffsetthematchingexpenditure.
CapitalgrantsreceivedandreceivableunderEUassistedschemesarerecognisedwhenreceivedorwhen
theirreceiptcanbeforeseenwithvirtualcertainty.
Capitalgrantsaretreatedasdeferredincomeandamortisedtotheprofitandlossaccountonabasis
consistentwiththedepreciationpolicyoftherelatedtangiblefixedassets.
6. Tangible Fixed Assets
Tangiblefixedassetsarestatedatcostlessaccumulateddepreciation.
Certainsecurityequipmentinsub-postofficesandfurnitureandfittings,togetherwithotherminoritems,
arechargedtotheprofitandlossaccountintheyearinwhichtheexpenditureisincurred.Allother
purchasesoftangiblefixedassetsarecapitalised.
Freeholdandlongleaseholdlandisnotdepreciated.Depreciationonothertangiblefixedassetsischarged
totheprofitandlossaccountonastraightlinebasissoastowriteoffthoseassets,adjustedforestimated
residualvalue,overtheexpectedusefullifeofeachcategory.Theremainingusefullivesoftheassetsand
theirresidualvaluesarereviewedonaregularbasis.
48 AnPostAnnualReport2006
6. Tangible Fixed Assets (continued)
Depreciationisprovidedonadditionswitheffectfromthefirstdayofthemonthfollowingcommissioning
andondisposalsuptotheendofthemonthofretirement.
Theestimatedusefullivesareasfollows:
Years
Freehold&longleaseholdbuildings 20-50
InterestinGPO 50
Motorvehicles 5
Computer&otherequipment 3-�0
7. Operating Leases
Operatingleaserentalsarechargedtotheprofitandlossaccountonastraightlinebasisoverthelease
term.
8. Goodwill
Goodwillarisingonacquisitions,representingtheexcessofthepurchasepriceoverthefairvalueofthe
netidentifiableassetsorliabilitiesacquired,iscapitalisedandamortisedtotheprofitandlossaccounton
astraightlinebasisoveritsexpectedusefullifeoftenyears.Thecarryingvalueofgoodwillisreviewed
annuallyandprovisionismadeforanyimpairmentinvalue.Ondisposalofabusiness,anygoodwillis
includedindeterminingtheprofitorlossonsaleofthebusiness.
9. Taxation
Currenttax,includingIrishcorporationtaxandforeigntax(es),isprovidedontheGroup’staxableprofits,
atamountsexpectedtobepaid(orrecovered)usingthetaxratesandlawsthathavebeenenactedor
substantiallyenactedbythebalancesheetdate.
Deferredtaxisrecognisedinrespectofalltimingdifferencesthathaveoriginatedbutnotreversedatthe
balancesheetdate.Provisionismadeattheratesexpectedtoapplywhenthetimingdifferencesreverse.
TimingdifferencesaredifferencesbetweentheGroup’staxableprofitsanditsresultsasstatedinthe
financialstatementsthatarisefromtheinclusionofgainsandlossesintaxableprofitsinperiodsdifferent
fromthoseinwhichtheyarerecognisedinthefinancialstatements.
Anetdeferredtaxassetisregardedasrecoverableandthereforerecognisedonlywhen,onthebasisof
allavailableevidence,itcanberegardedasmorelikelythannotthattherewillbesuitabletaxableprofits
fromwhichthefuturereversaloftheunderlyingtimingdifferencescanbededucted.
Deferredtaxisrecognisedinrespectoftheretainedearningsofoverseassubsidiaries,jointventuresand
associatesonlytotheextentthat,atthebalancesheetdate,dividendshavebeenaccruedorreceivable
orabindingagreementtodistributepastearningsinfuturehasbeenenteredintobythesubsidiary,joint
ventureorassociate.
AccountingPoliciescontinued
AnPostAnnualReport2006 49
10. Pensions
TheGroupprovidespensionstoitsemployeesunderdefinedbenefitsuperannuationschemesand
adefinedcontributionscheme.Italsoprovidesretirementgratuitiesundernormalcircumstancesto
postmastersengagedasagentsandtocertainnon-pensionableemployees.
Inrelationtothedefinedcontributionscheme,contributionsareaccruedandrecognisedinoperating
profitorlossintheperiodinwhichtheyareearnedbytherelevantemployees.
Forthedefinedbenefitschemes,thedifferencebetweenthemarketvalueoftheschemes’assetsand
theactuariallyassessedpresentvalueoftheschemes’liabilities,calculatedusingtheprojectedunitcredit
method,isdisclosedasanasset/liabilityonthebalancesheet,netofdeferredtax(totheextentthatitis
recoverable).
Theamountchargedtooperatingprofitistheactuariallydeterminedcostofpensionbenefitspromisedto
employeesearnedduringtheyearplusanybenefitimprovementsgrantedtomembersduringtheyear.
Theexpectedreturnonthepensionscheme’sassetsduringtheyearandtheincreaseinthescheme’s
liabilitiesduetotheunwindingofthediscountduringtheyearareshownasfinancingcostsintheprofit
andlossaccount.
Anydifferencebetweentheexpectedreturnonassetsandthatactuallyachievedandanychangestothe
liabilitiesduetochangesinassumptionsorbecauseactualexperienceduringtheyearwasdifferentto
thatassumed,arerecognisedasactuarialgainsandlossesinthestatementoftotalrecognisedgainsand
losses.
Inrelationtotheunfundedliabilityforretirementgratuities,theactuariallydeterminedpresentvalueof
theliabilityisrecordedinfullinthebalancesheetanditisincreasedforthecostofadditionalbenefits
earnedduringtheyearwhichischargedtooperatingprofit.Theunwindingofthediscountontheliability
isshownasafinancingcostintheprofitandlossaccount.Changestotheliabilityasaresultofchanges
inmeasurementassumptionsorbecauseactualexperienceisdifferenttothatassumedareconsideredto
beanactuarialgainorlossandareincludedinthestatementoftotalrecognisedgainsandlosses.
11. Foreign Currencies
Transactionsdenominatedinforeigncurrenciesaretranslatedintoeuroandrecordedattheratesof
exchangerulingatthedatesofthetransactions.Monetaryassetsandliabilitiesdenominatedinforeign
currenciesaretranslatedintoeuroattheratesofexchangerulingatthebalancesheetdateoratforward
purchasecontractrateswheresuchcontractsexist.Allsuchexchangedifferencesaredealtwithinthe
profitandlossaccount.
Resultsofoverseassubsidiariesaretranslatedintoeuroattheaverageexchangeratefortheperiod.The
assetsandliabilitiesofoverseassubsidiariesaretranslatedintoeuroatratesofexchangerulingatthe
balancesheetdate.Translationdifferencesarereportedasamovementonreserves.
50 AnPostAnnualReport2006
Notes2006
€’000
Exceptional2006
€’000
Total2006
€’0002005
€’000
Turnover–continuingoperations 2 818,827 - 818,827 752,887
Operatingcosts 3 (804,162) (20,040) (824,202) (736,690)
Operatingprofit/(loss)–continuingoperations 14,665 (20,040) (5,375) �6,�97
Exceptionalitems–continuingoperations
–Netprofitonsaleofassets 4 94,700 59,323
–Financialservicesjointventuresetupcosts 4 (13,883) -
–Costoffundamentalrestructuring 4 - (40,000)
Otherfinanceincome(net) �8 21,123 5,39�
Profitonordinaryactivitiesbeforetaxation 5 96,565 40,9��
Taxonprofitonordinaryactivities 6 (20,900) (20�)
Profitforthefinancialyear 7/20 75,665 40,7�0
OnbehalfoftheBoard
MargaretMcGinley
Chairperson
DonalConnell
Director
ConsolidatedProfitandLossAccountfortheyearended3�December,2006
AnPostAnnualReport2006 5�
Notes 2006€’000
2005€’000
Profitforthefinancialyear 75,665 40,7�0
Actuarialgain/(loss)onpostemploymentplansrecognised �8 118,179 (�,786)
Totalrecognisedgainsandlosses 193,844 38,924
ConsolidatedStatementofTotalRecognisedGainsandLossesfortheyearended3�December,2006
52 AnPostAnnualReport2006
Notes 2006€’000
2005€’000
FixedAssets
Intangibleassets–goodwill 9 7,935 �2,�38
Tangibleassets �0 188,262 204,�37
Financialassets �� - -
196,197 2�6,275
CurrentAssets
Debtors �2 89,446 79,434
Cashatbankandinhand �3 295,049 �85,344
384,495 264,778
Creditors:Amountsfallingduewithinoneyear �4 (179,461) (�48,875)
NetCurrentAssets 205,034 ��5,903
TotalAssetslessCurrentLiabilities 401,231 332,�78
Creditors:Amountsfallingdueaftermorethanoneyear �6 (3,971) (4,073)
ProvisionsforLiabilities �7 (78,702) (88,847)
NetAssetsexcludingPensionLiability 318,558 239,258
PensionLiability �8 (193,226) (307,770)
NetAssets/(Liabilities)includingPensionLiability 125,332 (68,5�2)
CapitalandReserves
Calledupsharecapital �9 68,239 68,239
Capitalconversionreservefund �9 877 877
Profitandlossaccount 20 56,216 (�37,628)
Shareholders’Funds/(Deficit) 2� 125,332 (68,5�2)
OnbehalfoftheBoard
MargaretMcGinley
Chairperson
DonalConnell
Director
ConsolidatedBalanceSheetat3�December,2006
AnPostAnnualReport2006 53
Notes 2006€’000
2005€’000
FixedAssets
Tangibleassets �0 170,934 �86,046
Financialassets �� 11,431 �3,53�
182,365 �99,577
CurrentAssets
Debtors �2 90,572 83,�87
Cashatbankandinhand �3 269,527 �65,057
360,099 248,244
Creditors:Amountsfallingduewithinoneyear �4 (221,021) (�89,4��)
NetCurrentAssets 139,078 58,833
TotalAssetslessCurrentLiabilities 321,443 258,4�0
Creditors:Amountsfallingdueaftermorethanoneyear �6 (2,912) (2,985)
ProvisionsforLiabilities �7 (78,702) (88,847)
NetAssetsexcludingPensionLiability 239,829 �66,578
PensionLiability �8 (193,226) (307,770)
NetAssets/(Liabilities)includingPensionLiability 46,603 (�4�,�92)
CapitalandReserves
Calledupsharecapital �9 68,239 68,239
Capitalconversionreservefund �9 877 877
Profitandlossaccount 20 (22,513) (2�0,308)
Shareholders’Funds/(Deficit) 2� 46,603 (�4�,�92)
OnbehalfoftheBoard
MargaretMcGinley
Chairperson
DonalConnell
Director
CompanyBalanceSheetat3�December,2006
54 AnPostAnnualReport2006
Notes 2006€’000
2005€’000
Netcashinflowfromoperatingactivities(below) 37,082 40,888
Returnsoninvestmentsandservicingoffinance 22 (5) (56)
Taxation 22 (17,001) �32
Capitalexpenditureandfinancialinvestment 22 93,002 (9,242)
Acquisitionsanddisposals 22 (3,373) 75,957
Cashinflowbeforeuseofliquidresources 109,705 �07,679
Managementofliquidresources 22 (60,029) (84,442)
Increaseincashintheyear 49,676 23,237
Reconciliationofoperatingprofitbeforeexceptionalitemtonetcashinflowfromoperatingactivities
2006€’000
2005€’000
Operatingprofitbeforeexceptionalitem 14,665 �6,�97
Retrospectivepayawards (20,040) -
Depreciation 21,630 27,067
Profitonsaleoftangiblefixedassetsotherthanlandandbuildings (145) (�85)
Movementinprovisionforbusinessrestructuring (10,145) (20,8�5)
Noncashpensioncost 24,758 �2,840
Capitalgrantsamortised (102) (�02)
Financialservicesjointventuresetupcosts (7,322) (4,56�)
Goodwillamortised/impaired 4,203 2,263
Interestpayable 5 56
(Increase)inoperatingdebtors (13,023) (6,��2)
Increaseinoperatingcreditors 22,598 �4,240
Netcashinflowfromoperatingactivities 37,082 40,888
Reconciliationofnetcashflowtomovementinnetfunds
Notes 2006€’000
2005€’000
Increaseincashintheyear 23 49,676 23,237
Cashinflowfromchangeinliquidresources 23 60,029 84,442
Changeinnetfundsresultingfromcashflows 23 109,705 �07,679
Cashinsubsidiariessold 23 - (��,750)
Netfundsatbeginningofyear 23 185,344 89,4�5
Netfundsatendofyear 23 295,049 �85,344
ConsolidatedCashFlowStatementfortheyearended3�December,2006
AnPostAnnualReport2006 55
1. Status of Company
TheCompanyisalimitedliabilitycompany,incorporatedundertheCompaniesActs,�963to2006.Under
thePostalandTelecommunicationsServicesAct,�983,theCompanyisentitledtoomittheword‘Limited’
fromitsname.
2. Turnover
2006€’000
2005€’000
Theanalysisofturnoverisasfollows:
RepublicofIreland
Postage:Lettersandparcels 594,309 543,4��
Postage:Electionsandreferendum - 69�
Postoffices:Agency,remittanceandotherservices 144,230 �35,963
Otherservices 44,848 44,�4�
Interestincome 9,548 5,259
792,935 729,465
UnitedKingdomandOtherEuropean
Otherservices 25,892 23,422
818,827 752,887
Intheopinionofthedirectors,fullercompliancewiththedisclosurerequirementsofSSAP25‘Segmental
Reporting’wouldbeseriouslyprejudicialtotheGroup’sinterests.
3. Operating Costs
2006€’000
2005€’000
Staffandpostmasters’costsbeforeexceptionalitem 558,080 5�4,�05
Exceptionalitem–retrospectivepayawards(note4) 20,040 -
Total(note8) 578,120 5�4,�05
Othercosts:
Distribution 73,044 62,647
Accommodation 31,477 24,648
Operational 77,179 72,32�
Administration 38,549 33,639
Depreciation,amortisation&impairmentofgoodwill 25,833 29,330
824,202 736,690
NotestotheFinancialStatementsfortheyearended3�December,2006
56 AnPostAnnualReport2006
4. Exceptional Items
2006€’000
2005€’000
Retrospectivepayawards 20,040 -
Profitonsaleofsubsidiaries 1,177 59,323
Profitonsaleoffixedassets 93,523 -
Profitonsaleofassets 94,700 59,323
Financialservicesjointventuresetupcosts (13,883) -
Costoffundamentalrestructuring - (40,000)
RetrospectivePayAwards
InOctober2006,theCompanydecidedtopaytheretrospectionofcertainpayawardsduetostaff,
paymentofwhichtheLabourCourthadrecommendedwascontingentontheCompanyreturningto
reasonableandsustainableprofitandasitsfinancialandcommercialcircumstancespermit.Theamount
oftheseretrospectionpaymentsincludedintheoperatingresultfortheyearwas€20,040,000.
Profitonsaleofsubsidiaries
On�5March,2005,theGroupsolditssubsidiariesPostTSUK.LimitedandAnPostTransactionServices
S.A.foraconsiderationof€82,700,000netoftransactioncostsresultinginaprofitof€59,323,000.
Afurtheramountof€�,�77,000netofrelatedfeeswasreceivedfollowingtheresolutionofcontract
warrantyissues.Thisamountwasrecognisedduringtheyearended3�December,2006.
Profitonsaleoffixedassets
Duringtheyear,theGroupdisposedoftheformerparcelsdepotontheNaasRoad,Dublinfora
considerationof€�07,000,000resultinginaprofitbeforetaxof€93,523,000.CapitalGainsTaxof
€�6,800,000waspaidduringtheyearinrespectofthisdisposal.
FinancialServicesjointventuresetupcosts
InOctober2006,theCompanyenteredintoanagreementwithFortistoestablishajointventure
companytoprovidebankingservicestotheIrishmarket.Thedirectorsconsiderthistobeafundamental
restructuringoftheCompany’sbusiness.Underthetermsoftheagreement,AnPost’scontributionwill
compriseitsPostpointandAnPostDirectLimitedbusinesseswhencertainconditionshavebeenmet.The
jointventureisexpectedtobeestablishedin2007.
CostsincurredbyAnPostinrelationtotheprocessofidentifyingandselectingajointventurepartner,
subsequentnegotiationsandsigningoftheagreementamountedto€�3,883,000.
NotestotheFinancialStatementscontinued
AnPostAnnualReport2006 57
5. Profit on Ordinary Activities Before Taxation
2006€’000
2005€’000
Theprofitonordinaryactivitiesbeforetaxationisstatedaftercharging:
Directors’emoluments
Fees 278 2�3
Otheremoluments 396 338
Pensioncontributions 69 65
Auditors’remuneration–audit 300 287
Depreciation 21,630 27,067
Amortisation/impairmentofgoodwill 4,203 2,263
Operatingleaserentals:
Rentalofbuildings 7,312 7,442
Other–equipmentandmotorvehicles 4,853 3,363
Interestpayableonbankfacilitiesrepayablewithinoneyearandsimilarcharges 5 56
andaftercrediting:
Capitalgrantsamortised 102 �02
Theamountsshownaboveasdirectorsemolumentsincludeonlytheamountspaidtothedirectorsinthe
executionoftheirdutiesasdirectorsandthesalaryoftheChiefExecutivewhoisalsoadirector.Other
thanthis,theydonotincludethesalariesoftheemployeeandpostmasterdirectors.
TheremunerationpackageofMrDonalCurtinwhoretiredasChiefExecutiveOfficeron�3July,2006
whichisincludedintheamountsshownaboveasdirectors’emoluments,wasasfollows:
2006€’000
2005€’000
Director’sfee 9 �3
Basicsalary 170 26�
Non-pensionableperformancerelatedpay 58 64
Taxablebenefits,includinguseofacompanycar 10 �3
247 35�
Pensioncontributions 43 65
290 4�6
58 AnPostAnnualReport2006
5. Profit on Ordinary Activities Before Taxation (continued)
TheremunerationpackageofMrDonalConnellwhowasappointedChiefExecutiveOfficeron�4
August,2006whichisincludedintheamountsshownaboveasdirectors’emoluments,wasasfollows:
2006€’000
2005€’000
Director’sfee 7 -
Basicsalary 130 -
Non-pensionableperformancerelatedpay 21 -
Taxablebenefits,includinguseofacompanycar 7 -
165 -
Pensioncontributions 26 -
191 -
6. Tax on Profit on Ordinary Activities
2006€’000
2005€’000
Currenttax
Ireland–Capitalgainstax 16,800 -
Ireland–Corporationtax 3,551 -
UK–Corporationtax 549 20�
20,900 20�
NotestotheFinancialStatementscontinued
AnPostAnnualReport2006 59
6. Tax on Profit on Ordinary Activities (continued)
ThecurrenttaxchargeislowerthanthestandardrateofcorporationtaxinIreland.
Thedifferencesareexplainedbelow:
2006€’000
2005€’000
Profitonordinaryactivitiesbeforetax 96,565 40,9��
Currenttaxof�2.5%(2005:�2.5%) 12,071 5,��4
Effects of:
Expensesnotdeductible 573 360
Depreciationinexcessofcapitalallowances 562 (883)
Manufacturingcorporationtaxrelief - (�6)
Incometaxedathigherrates 1,645 9�8
Utilisationoftaxlosses (1,055) (�,266)
Taxlossesnotutilised - 6,229
Profitonassetsalestaxedathigherrate 5,110 -
Exceptionalcostsnotdeductible 1,735 -
Profitonsaleofsubsidiariesnottaxable (324) (7,567)
Shorttermtimingdifferences 583 (2,688)
Currenttaxcharge 20,900 20�
Giventheuncertaintyovertheexistenceoffuturetaxableprofits,apotentialdeferredtaxassetof
€32,777,000(2005:€50,649,000)hasnotbeenrecognisedintheconsolidatedbalancesheetat
3�December,2006.Thisdeferredtaxassetnotrecognisedcomprisesadeferredtaxassetinrelationto
thenetpensiondeficitrecognisedof€24,�53,000(2005:€38,47�,000),timingdifferencesonbusiness
restructuring,€2,38�,000(2005:€2,38�,000),taxlossesforwardnotutilised,€�2,��4,000(2005:
€�3,245,000),offsetbytimingdifferencesof€5,87�,000(2005:€3,448,000).
7. Profit For The Financial Year
2006€’000
2005€’000
Profit/(loss)aftertaxintheholdingcompany 69,616 (25,979)
Profitaftertaxinsubsidiaryundertakings 6,049 66,689
75,665 40,7�0
AseparateprofitandlossaccountforAnPosthasnotbeenpreparedbecausetheconditionslaiddownin
Section3(2)oftheCompanies(Amendment)Act,�986havebeensatisfied.
60 AnPostAnnualReport2006
8. Staff Numbers And Costs
2006 2005
TheaveragenumberofpersonsworkingintheGroupduringtheyearwasasfollows:
Headquarters 561 557
Savings/Remittanceservices 301 306
Inspection 37 4�
Postmen/postwomen 4,249 4,426
Postalsorters 1,280 �,238
Postofficeclerks 1,026 �,068
Othergrades 683 753
Temporary 1,379 �,�63
TotalAnPostemployees 9,516 9,552
Subsidiarycompanies 496 478
TotalGroupemployees 10,012 �0,030
Postmasters:Engagedasagents 1,300 �,349
2006 €’000
2005 €’000
Theaggregatepayrollcostsofthesepersonswereasfollows:
Wages,salariesandpostmasters’costs 477,917 430,708
Socialwelfarecosts 30,228 27,9�6
Otherpensioncosts(note�8) 69,975 55,48�
578,120 5�4,�05
InOctober2006,thecompanydecidedtopaytheretrospectionofcertainpayawardsduetostaff,
paymentofwhichtheLabourCourthadrecommendedwascontingentontheCompanyreturningto
reasonableandsustainableprofitandasitsfinancialandcommercialcircumstancespermit.Theamountof
theseretrospectionpaymentswhichareincludedabovein2006,were€20,040,000andincludepension
costsof€2,737,000.
NotestotheFinancialStatementscontinued
AnPostAnnualReport2006 6�
9. Intangible Fixed Assets – Goodwill
Group
Total€’000
Cost
At3�December,2005and2006 22,44�
Amortisation
At3�December,2005 �0,303
Chargedduringtheyear 2,�03
Provisionforimpairment 2,�00
At3�December,2006 �4,506
NetBookValue
At31December,2006 7,935
At3�December,2005 �2,�38
Theprovisionforimpairmentofgoodwillreflectsanassessmentoftheunderlyingcarryingvalueof
goodwill.Adiscountrateofapproximately�5%hasbeenusedinthisregard.
62 AnPostAnnualReport2006
10. Tangible Fixed Assets
Group Freehold&longleaseholdland
&buildings€’000
InterestinGPO€’000
Motorvehicles
€’000
Computer&other
equipment€’000
Total€’000
Cost
At3�December,2005 �8�,85� 26,�80 32,305 2�6,000 456,336
Additions 4,840 249 255 �3,586 �8,930
Disposals (�6,079) - (4,4�3) (4,548) (25,040)
Exchangedifferences - - - 29 29
At3�December,2006 �70,6�2 26,429 28,�47 225,067 450,255
AccumulatedDepreciation
At3�December,2005 34,970 8,�89 28,57� �80,469 252,�99
Chargedduringyear 3,664 655 2,029 �5,282 2�,630
Eliminatedondisposals (3,032) - (4,304) (4,5�7) (��,853)
Exchangedifferences - - - �7 �7
At3�December,2006 35,602 8,844 26,296 �9�,25� 26�,993
NetBookValue
At31December,2006 135,010 17,585 1,851 33,816 188,262
At3�December,2005 �46,88� �7,99� 3,734 35,53� 204,�37
Company Freehold&longleaseholdland
&buildings€’000
InterestinGPO€’000
Motorvehicles
€’000
Computer&other
equipment€’000
Total€’000
Cost
At3�December,2005 �6�,758 26,�80 32,230 204,�04 424,272
Additions 4,840 249 255 �2,586 �7,930
Disposals (�6,079) - (4,47�) (4,263) (24,8�3)
At3�December,2006 �50,5�9 26,429 28,0�4 2�2,427 4�7,389
AccumulatedDepreciation
At3�December,2005 30,092 8,�89 28,627 �7�,3�8 238,226
Chargedduringyear 3,276 655 �,995 �3,960 �9,886
Eliminatedondisposal (3,032) - (4,365) (4,260) (��,657)
At3�December,2006 30,336 8,844 26,257 �8�,0�8 246,455
NetBookValue
At31December,2006 120,183 17,585 1,757 31,409 170,934
At3�December,2005 �3�,666 �7,99� 3,603 32,786 �86,046
Group and Company
Thedepreciableelementoffreehold&longleaseholdland&buildingsamountsto:
Group€�44,983,000(2005:€�55,796,000),Company€�28,2�7,000(2005:€�39,023,000).
NotestotheFinancialStatementscontinued
AnPostAnnualReport2006 63
11. Financial Fixed Assets
Group Company
2006€
2005€
2006€
2005€
Sharesinsubsidiaryundertakings,atcost 102 �02 11,430,777 �3,530,777
Interestinjointventureandassociatedundertakings 163 �63 163 �63
265 265 11,430,940 �3,530,940
Themovementsduringtheyearwereasfollows:
Sharesinsubsidiaryundertakings
Atbeginningofyear 102 �02 13,530,777 �3,498,88�
Additions–deferredconsiderationpaid - - - 3�,896
Provisionforimpairment - - (2,100,000) -
Atendofyear 102 �02 11,430,777 �3,530,777
Intheopinionofthedirectors,thevalueofthefinancialfixedassets,noneofwhicharelisted,isnotless
thantheircarryingamount.
12. Debtors
Group Company
2006€’000
2005€’000
2006€’000
2005€’000
Amountsfallingduewithinoneyear
Tradedebtors 61,979 50,562 48,303 39,738
Amountsowedbysubsidiaryundertakingnotconsolidated 819 5�2 819 5�2
Amountsowedbyothersubsidiaryundertakings - - 710 �,099
Amountsowedbyassociatedundertaking 165 �98 165 �98
Otherdebtors 8,241 4,867 8,196 4,788
Prepaymentsandaccruedincome 18,242 23,295 16,158 20,886
89,446 79,434 74,351 67,22�
Amountsfallingdueaftermorethanoneyear
Amountsowedbysubsidiaryundertakings - - 16,221 �5,966
89,446 79,434 90,572 83,�87
64 AnPostAnnualReport2006
13. Cash at Bank and in Hand
Group Company
2006 €’000
2005 €’000
2006€’000
2005€’000
Cashatbank 50,201 50,377 24,679 30,094
Cashinhand 193,966 �94,095 193,966 �94,09�
244,167 244,472 218,645 224,�85
Termdeposits 284,327 224,298 284,327 224,298
Less:Amountsheldintrust (233,445) (283,426) (233,445) (283,426)
295,049 �85,344 269,527 �65,057
14. Creditors: Amounts Falling Due Within One Year
Group Company
2006 €’000
2005 €’000
2006€’000
2005€’000
Tradecreditors 51,249 43,675 40,311 32,05�
Amountsowedtosubsidiaryundertakings - - 60,469 56,442
Othercreditors 4,304 4,462 3,846 3,945
Taxationandsocialwelfare(note�5) 15,855 �8,395 12,758 �7,2�5
Accruals 86,035 64,399 81,648 6�,843
Deferredincome–capitalgrants(note�6) 102 �02 73 73
Deferredpostageincome 21,916 �7,842 21,916 �7,842
179,461 �48,875 221,021 �89,4��
15. Taxation and Social Welfare
Group Company
2006 €’000
2005 €’000
2006€’000
2005€’000
Corporationtax 4,100 20� 2,300 -
IncometaxdeductedunderPAYE 7,428 9,846 7,186 9,66�
Payrelatedsocialinsurance 5,020 5,6�4 4,800 5,460
Valueaddedtax (1,232) 2,5�2 (2,068) �,872
Professionalserviceswithholdingtax 539 222 540 222
15,855 �8,395 12,758 �7,2�5
NotestotheFinancialStatementscontinued
AnPostAnnualReport2006 65
16. Creditors: Amounts Falling Due After More Than One Year
Group Company
2006 €’000
2005 €’000
2006€’000
2005€’000
Deferredincome–capitalgrants 3,971 4,073 2,912 2,985
Themovementsongrantswereasfollows:
Atbeginningofyear 4,175 4,277 3,058 3,�3�
Amortisedtoprofitandlossaccount (102) (�02) (73) (73)
Atendofyear 4,073 4,�75 2,985 3,058
Transferredtocreditors:amountsfallingduewithinoneyear (102) (�02) (73) (73)
3,971 4,073 2,912 2,985
17. Provisions for Liabilities
Group and Company
2006€’000
2005€’000
Businessrestructuring 78,702 88,847
Themovementsduringtheyearwereasfollows:
Total€’000
Atbeginningofyear 88,847
Utilisedduringtheyear (�0,�45)
Atendofyear 78,702
Theprovisionforbusinessrestructuringat3�December,2006includes€59,656,000(2005:
€69,80�,000)inrelationtobusinessrestructuringredundancycosts,and€�9,046,000(2005:
€�9,046,000)inrelationtotheintroductionofanEmployeeShareOwnershipPlan(ESOP).Business
restructuringisnowanticipatedtobecompletedby3�December,2009.
66 AnPostAnnualReport2006
18. Pensions and Similar Obligations
Thepensionentitlementsofemployeesariseunderanumberofdefinedbenefitanddefinedcontribution
pensionschemes,theassetsofwhicharevestedinindependenttrusteesappointedbytheCompanyfor
thesolebenefitofemployeesandtheirdependents.Annualcontributionsarebasedontheadviceofa
professionallyqualifiedactuary.
Theamountschargedduringtheyeartooperatingcostswereasfollows:
2006€’000
2005€’000
Definedbenefitschemes–currentservicecost 68,435 54,000
Unfundedretirementbenefits–currentservicecost 968 850
Definedcontributionscheme 572 63�
69,975 55,48�
Pastservicecostsof€4,306,000(2005:€nil)aroseduringtheyear.Theseweredischargedthroughthe
utilisationoftherestructuringprovision(note�7)andhadnoimpactontheprofitandlossaccountfor
theyearended3�December,2006.
Thepensioncostsofthedefinedbenefitschemesareassessedinaccordancewiththeadviceofan
independentprofessionallyqualifiedactuary.Themostrecentactuarialvaluationswerecarriedoutat�
January,2005usingtheattainedagemethodandaresufficienttocover99.9%oftheaccruedliabilities.
Theprincipalactuarialassumptionwasthat,overthelongterm,theannualrateofreturnoninvestments
wouldbe2.0%higherthantheannualincreaseinpensionableremuneration.Theactuarialvaluationof
�January,2005recommendedacontributionrateof�4.4%ofpensionableremuneration.Theactuarial
valuationsarenotavailableforpublicinspectionbuttheresultsofthevaluationshavebeenadvisedtothe
membersoftheschemes.
ThevaluationsofthepensionschemesusedforthepurposeofFRS�7disclosureshavebeenbased
onthemostrecentactuarialvaluationsasidentifiedaboveandupdatedbytheindependentactuaries
to3�December,2006.Schemeassetsarestatedattheirmarketvalueatthebalancesheetdate.
NotestotheFinancialStatementscontinued
AnPostAnnualReport2006 67
18. Pensions and Similar Obligations (continued)
ThefinancialassumptionsusedtocalculatetheretirementbenefitliabilitiesunderFRS�7wereasfollows:
2006 2005 2004
Valuationmethod ProjectedUnit ProjectedUnit ProjectedUnit
Discountrate 4.70% 4.25% 4.85%
Inflationrate 2.00% 2.00% 2.00%
Increasetopensionsinpayment 3.75% 3.75% 4.00%
Pensionablesalaryincreases 3.75% 3.75% 4.00%
Thelongtermexpectedratesofreturnontheassetsofthepensionschemewere:
2006 2005 2004
Equities 7.60% 7.�0% 7.30%
Bonds 4.20% 3.50% 3.80%
Other 5.10% 4.80% 4.30%
Themarketvalueoftheassetsofthedefinedbenefitschemesat3�December,2006,2005and2004
were:
2006€’000
2005€’000
2004€’000
Equities 1,477,000 �,326,000 �,039,000
Bonds 510,000 504,000 430,000
Other 166,000 �58,000 �77,000
Totalmarketvalueofpensionschemes’assets 2,153,000 �,988,000 �,646,000
Presentvalueofpensionsschemes’liabilities (2,333,000) (2,282,000) (�,932,000)
Netdeficitinfundedpensionschemes (180,000) (294,000) (286,000)
68 AnPostAnnualReport2006
18. Pensions and Similar Obligations (continued)
Movement in deficit during year
2006 2005
Schemes€’000
Unfunded€’000
Total€’000
Schemes€’000
Unfunded€’000
Total€’000
Deficitinschemesatbeginningofyear
(294,000) (13,770) (307,770) (286,000) (�2,535) (298,535)
Currentservicecost (68,435) (968) (69,403) (54,000) (850) (54,850)
Pastservicecost (4,306) - (4,306) - - -
Contributionspaid 47,688 1,263 48,951 4�,�99 8�� 42,0�0
Otherfinance(expense)/income
21,700 (577) 21,123 6,000 (609) 5,39�
Actuarialgain/(loss) 117,353 826 118,179 (�,�99) (587) (�,786)
Deficitinschemeatendofyear
(180,000) (13,226) (193,226) (294,000) (�3,770) (307,770)
Other Finance Income
2006 2005
Schemes€’000
Unfunded€’000
Total€’000
Schemes€’000
Unfunded€’000
Total€’000
Interestonschemeliabilities (97,000) (577) (97,577) (94,000) (609) (94,609)
Expectedreturnonschemeassets
118,700 - 118,700 �00,000 - �00,000
21,700 (577) 21,123 6,000 (609) 5,39�
The actuarial gains and losses are analysed as follows:
2006 2005
Schemes€’000
Unfunded€’000
Total€’000
Schemes€’000
Unfunded€’000
Total€’000
Differencebetweenexpectedandactualreturnonassets
66,000 - 66,000 257,000 - 257,000
Experiencegainsandlossesonschemesliabilities
(43,000) - (43,000) (2,000) (587) (2,587)
Changesinassumptionsunderlyingthepresentvalueofschemesliabilities
94,353 826 95,179 (256,�99) - (256,�99)
Actuarialgain/(loss)recognisedin
117,353 826 118,179 (�,�99) (587) (�,786)
NotestotheFinancialStatementscontinued
AnPostAnnualReport2006 69
18. Pensions and Similar Obligations (continued)
History of actuarial gains and losses
2006€’000
2005€’000
2004€’000
2003€’000
2002€’000
Differencebetweenexpectedandannualreturnonassets
66,000 257,000 85,000 45,000 (394,000)
Expressedasapercentageofschemesassets
3% �3% 5% 3% (29%)
Experiencegainsandlossesonschemesliabilities
(43,000) (2,000) (65,000) (79,000) 242,000
Expressedasapercentageofschemesliabilities
(2%) (0%) (3%) (5%) �7%
Totalactuarialgainsandlosses 117,353 (�,�99) (��0,000) (�06,000) (2�5,000)
Expressedasapercentageofschemesliabilities
5% (0%) (6%) (6%) (�5%)
19. Share Capital
Group and Company
2006€’000
2005€’000
Authorised:80,000,000OrdinarySharesof€�.25each
100,000 �00,000
Allotted,calledupandfullypaid:54,590,946OrdinarySharesof€�.25each
68,239 68,239
On�4January,2003,pursuanttoSection26oftheEconomicandMonetaryUnionAct,�998,the
Company’sshareswererenomalisedfrom€�.269738to€�.25pershareandanamountof€877,000
wastransferredtoacapitalconversionreservefund.
20. Profit and Loss Account
Group Company
2006 €’000
2005 €’000
2006€’000
2005€’000
Atbeginningofyear (137,628) (�76,552) (210,308) (�82,543)
Profit/(loss)forthefinancialyear 75,665 40,7�0 69,616 (25,979)
Otherrecognisedgains/(losses) 118,179 (�,786) 118,179 (�,786)
Atendofyear 56,216 (�37,628) (22,513) (2�0,308)
70 AnPostAnnualReport2006
21. Reconciliation of Shareholders’ Funds/(Deficit)
Group Company
2006 €’000
2005 €’000
2006€’000
2005€’000
Atbeginningofyear (68,512) (�07,436) (141,192) (��3,427)
Profit/(loss)forthefinancialyear 75,665 40,7�0 69,616 (25,979)
Otherrecognisedgains/(losses) 118,179 (�,786) 118,179 (�,786)
Shareholders’funds/(deficit)atendofyear 125,332 (68,5�2) 46,603 (�4�,�92)
22. Gross Cash Flows
2006€’000
2005€’000
Returnsoninvestmentsandservicingoffinance
Interestpaid (5) (56)
Taxation
Tax(paid)/refunded (17,001) �32
Capitalexpenditureandfinancialinvestment
Purchaseoftangiblefixedassets (16,853) (9,629)
Disposaloftangiblefixedassets 109,855 387
93,002 (9,242)
Acquisitionsanddisposals
Disposalofsubsidiaryundertakings(note4) 1,177 76,200
Financialservicesjointventuresetupcosts (4,550) -
Acquisitionofsubsidiaryundertakings - (243)
(3,373) 75,957
Managementofliquidresources(notea)
Increaseintermdeposits (60,029) (84,442)
Notea:Liquidresourcescomprisetermdepositswithamaturitynoticeperiodofmorethanoneday.
NotestotheFinancialStatementscontinued
AnPostAnnualReport2006 7�
23. Analysis of Net Funds
Atbeginningofyear€’000
Cashflows
€’000
Atendofyear
€’000
Cashatbankandinhand 244,472 (305) 244,167
Amountsheldintrust (283,426) 49,98� (233,445)
49,676
Termdeposits 224,298 60,029 284,327
Total �85,344 �09,705 295,049
24. Subsidiary and Associated Undertakings
Name NatureofBusiness %Holding RegisteredOffice
SubsidiaryundertakingshelddirectlybytheCompany
AnPostNationalLottery Operationofthe 80% GeneralPostOffice,Company(note27) NationalLottery O’ConnellStreet,Dublin�.
ArcadePropertyCompany Propertydevelopment �00% GeneralPostOffice,Limited andletting O’ConnellStreet,Dublin�.
PostConsultInternational Computersoftwareservices �00% GeneralPostOffice,Limited O’ConnellStreet,Dublin�.
PrecisionMarketing Provisionofmarketingdata, �00% GeneralPostOffice,InformationLimited databaseservicesand O’ConnellStreet,Dublin�. businessdirectories
Prince’sStreetProperty Propertydevelopment �00% GeneralPostOffice,CompanyLimited andletting O’ConnellStreet,Dublin�.
PrintpostLimited Highvolumeprinting �00% GeneralPostOffice, O’ConnellStreet,Dublin�.
Post.TrustLimited Digitalcertificationandsecurity �00% GeneralPostOffice, services O’ConnellStreet,Dublin�.
JMCVanTransLimited Courieranddistribution �00% GeneralPostOffice, O’ConnellStreet,Dublin�.
TranspostLimited Courieranddistribution �00% GeneralPostOffice, O’ConnellStreet,Dublin�.
WaldermarLimited Courieranddistribution �00% GeneralPostOffice, O’ConnellStreet,Dublin�.
KompassIrelandPublishers Dormant �00% GeneralPostOffice,Limited O’ConnellStreet,Dublin�.
AnPostBillpostProcessing Billpaymentprocessing �00% GeneralPostOffice,ServicesLimited O’ConnellStreet,Dublin�.
AnPostBV Holdingcompany �00% Locatellekade�, Parnassustoren,�076AZ Amsterdam,TheNetherlands.
AnPostGeoDirectory Databaseservices �00% GeneralPostOffice,Limited O’ConnellStreet,Dublin�.
72 AnPostAnnualReport2006
24. Subsidiary and Associated Undertakings (continued)
Name NatureofBusiness %Holding RegisteredOffice
Subsidiaryundertakingsheldindirectlythroughasubsidiaryundertaking
AnPostDirectLimited Financialservices �00% GeneralPostOffice, O’ConnellStreet,Dublin�.
AnPostDirectManagement Dormant �00% GeneralPostOffice,ServicesLimited O’ConnellStreet,Dublin�.
AnPost(NI)Limited Holdingcompany �00% StokesHouse, CollegeSquareEast,Belfast.
AirBusinessLimited Distribution �00% 4,TheMerlinCentre, AcrewoodWay,St.Albans Herts,U.K.
AssociatedundertakinghelddirectlybytheCompany
ThePrizeBondCompany Administrationofthe 50% GeneralPostOffice,Limited PrizeBondScheme O’ConnellStreet,Dublin�.
JointVenture
WizardDirectStationery Dormant 50% GeneralPostOfficeCompanyLimited O’ConnellStreet,Dublin�.
AirBusinessLimitedisincorporatedinandoperatesinEngland&Wales.AnPost(NI)Limitedisincorporated
inandoperatesinNorthernIreland.AnPostBVisincorporatedinandoperatesintheNetherlands.
AllotherundertakingsareincorporatedinandoperateintheRepublicofIreland.Allshareholdingsconsist
ofordinarysharecapital.
AnPostNationalLotteryCompanycarriesonthebusinessofoperatingtheNationalLotteryunderlicence
fromtheMinisterforFinanceinaccordancewiththeprovisionsoftheNationalLotteryAct,�986.20%of
theissuedsharecapitalisheldbytheMinisterforFinance.
ThePrizeBondCompanyLimitedcarriesonthebusinessofadministeringthePrizeBondSchemeunder
contractfromtheNationalTreasuryManagementAgency.
ThefollowingsubsidiarieswillavailofthefilingexemptionavailableunderSection�7oftheCompanies
(Amendment)Act,�986,wherebytheywillannexthefinancialstatementsofAnPosttotheirannual
returns:
PostConsultInternationalLimited;PrintpostLimited;Post.TrustLimited;JMCVanTransLimited;Transpost
Limited;WaldermarLimited;PrecisionMarketingInformationLimited;Prince’sStreetPropertyCompany
Limited;AnPostBillpostProcessingServicesLimited;AnPostGeoDirectoryLimitedandKompassIreland
PublishersLimited.
NotestotheFinancialStatementscontinued
AnPostAnnualReport2006 73
25. Lease Commitments
2006 2005
Land&buildings
€’000
Other
€’000Total
€’000
Land& buildings
€’000
Other
€’000Total
€’000
Annualcommitmentsundernon-cancellableoperatingleaseswereasfollows:
Group
Expiringwithinoneyear 823 953 1,776 �,227 496 �,723
Expiringafteroneyearandbeforefiveyears
1,337 4,355 5,692 594 3,375 3,969
Expiringafterfiveyears 5,000 64 5,064 5,298 - 5,298
7,160 5,372 12,532 7,��9 3,87� �0,990
Company
Expiringwithinoneyear 691 935 1,626 636 432 �,068
Expiringafteroneyearandbeforefiveyears
407 4,167 4,574 506 3,250 3,756
Expiringafterfiveyears 4,906 64 4,970 4,844 - 4,844
6,004 5,166 11,170 5,986 3,682 9,668
Otherleasecommitmentsrelatetoequipmentandmotorvehicles.
LeasecommitmentsoftheCompanyincludecommitmentstosubsidiaryundertakings.
Therewerenomaterialfinanceleasecommitmentseitherat3�December,2006orwhichweredueto
commenceafterthatdate.
26. Capital Commitments
Futurecapitalexpenditureapprovedbythedirectorsbutnotprovidedforinthefinancialstatementswas
asfollows:
Group Company
2006 €’000
2005 €’000
2006€’000
2005€’000
Contractedfor 7,855 3,50� 7,855 3,50�
Authorisedbutnotcontractedfor - �0,464 - �0,464
7,855 �3,965 7,855 �3,965
74 AnPostAnnualReport2006
27. Related Party Disclosures and Controlling Party
Controlling party
TheGroupwascontrolledthroughouttheyearbytheMinisterforCommunications,MarineandNatural
ResourceswhoholdstheentireissuedsharecapitalofAnPostexceptforoneordinarysharewhichisheld
bytheMinisterforFinance.
Transactions with related undertakings
An Post National Lottery Company
TheGroupprovidesAnPostNationalLotteryCompany,anundertakingnotconsolidated,with
managementanddeliveryservices.Suchservicesarecarriedoutonanarm’slengthbasisor,where
required,inaccordancewiththetermsofthelicencegrantedbytheMinisterforFinancetooperate
theNationalLottery.TheCompanyalsoprovidesagencyservicestoAnPostNationalLotteryCompany
wherebytheCompanymakessalesandpaysprizesonbehalfofAnPostNationalLotteryCompanyin
accordancewiththestandardtermsandconditionsandremunerationstructurecommontoallofAnPost
NationalLotteryCompany’sagents.Groupturnoverfortheyearincludes€5,363,000(2005:€5,33�,000)
inrespectofservicesprovidedtoAnPostNationalLotteryCompany.Theseamountsareinclusiveofa
managementfeeof€2,844,000(2005:€2,966,000)payabletotheCompanyinaccordancewiththe
termsofthelicencetooperatetheNationalLottery.
ThecostsofstaffworkinginAnPostNationalLotteryCompanyarerechargedfromAnPostatcostand
amountedto€5,660,000fortheyearended3�December,2006(2005:€5,763,000).
TheamountowedbyAnPostNationalLotteryCompanytotheCompanywas€8�9,000at3�December,
2006(2005:€5�2,000).
AnPosthasagreedtoguaranteetheperformancebyAnPostNationalLotteryCompanyofitsobligations
underthelicencefortheholdingoftheNationalLotterygrantedbytheMinisterforFinance.AnPosthas
providedtheguarantee,themaximumliabilityofwhichamountsto€�0million,forthedurationofthe
licenceto3�December,20�0.
The Prize Bond Company Limited
UnderthetermsofacontractwithThePrizeBondCompanyLimited,theCompanycarriesoutcertain
aspectsoftheadministrationofthePrizeBondScheme.FeesearnedbytheCompanyinrespectofsuch
servicesamountedto€�,667,000fortheyearended3�December,2006(2005:€�,720,000).The
amountowedbyThePrizeBondCompanyLimitedtotheCompanywas€�65,000at3�December,2006
(2005:€�98,000).
Transactions with Government departments and other State bodies
TheGroupprovides,intheordinarycourseofbusiness,postage,agency,remittanceandcourierservices
tovariousGovernmentdepartmentsandotherStatebodies.
NotestotheFinancialStatementscontinued
AnPostAnnualReport2006 75
28. Contingencies
Group and Company
Therewerenocontingentliabilitiesorguaranteesat3�December,2006inrespectofwhichmaterial
lossesareexpectedotherthanasdisclosedelsewhereinthefinancialstatements.
29. Board Approval
ThefinancialstatementswereapprovedbytheBoardofDirectorson22March,2007.
76 AnPostAnnualReport2006
Consolidated Profit & Loss Account
2006€’000
2005€’000
2004*€’000
2003* €’000
2002* €’000
Turnover 818,827 752,887 750,�93 709,209 683,7�6
Operatingcosts (804,162) (736,690) (748,422) (752,�00) (70�,��2)
Operatingprofit/(loss) 14,665 �6,�97 �,77� (42,89�) (�7,396)
Retrospectivepayaward** (20,040) - - - -
Assetdisposals 94,700 59,323 5,298 �3,3�0 -
Businessrestructuring (13,883) (40,000) - - (52,500)
Shareofresultsofjointventureandassociate
- - (50) (��3) (376)
Otherfinanceincome 21,123 5,39� - - -
Profit/(loss)beforetaxation 96,565 40,9�� 7,0�9 (29,694) (70,272)
**Forstatutoryaccountspresentationpurposes,thisretrospectivepayawardisincludedinarrivingatgroup
operatingprofit(seenote4).Ithasbeenextractedforthepurposesofthescheduleaboveasthepayaward
relatesto2003and2004.
Consolidated Balance Sheet
Fixedassets 196,197 2�6,275 248,079 279,5�3 30�,305
Netcurrentassets/(liabilities) 205,034 ��5,903 �8,357 (38,4�0) (25,606)
Otherliabilities (82,673) (92,920) (9�,��3) (72,296) (87,54�)
Netassetsexcludingpensionliability 318,558 239,258 �75,323 �68,807 �88,�58
Pensionliability (193,226) (307,770)
Netassets/(liabilities)includingpensionliability 125,332 (68,5�2)
Capitalandreserves 125,332 (68,5�2) �75,323 �68,807 �88,�58
Ratios2006 2005 2004* 2003* 2002*
Operatingprofit/(loss)aboveas%ofturnover 1.79% 2.�5% 0.24% (6.05%) (2.5%)
Operatingprofit/(loss)aboveas%ofaverageshareholders’fundsbeforepensionliability
5.26% 7.8�% �.03% (24.03%) (7.79%)
Staffandpostmasters’costsas%ofoperatingcostsbeforeexceptionalitem
69.40% 69.79% 67.�3% 67.00% 68.59%
Currentassetsas%ofcurrentLiabilities
214.25% �77.85% ���.97% 75.96% 83.03%
*2004andprioryearsareaspreviouslyreportedunderSSAP24–AccountingforPensionCosts.
FiveYearFinancialSummary
AnPostAnnualReport2006 77
2006 2005 2004 2003 2002
Letterscorerevenueindex(200�=�00)(note�)
118.4 ��3.6 �09.2 �07.8 �04.6
Note�:Thisindexreflectschangesinletterscorerevenueandexcludesrevenuefromelections,referenda,
flotations,foreignadministrationsineachyearaswellastheimpactofchangestopublishedtariffs.
System Size
2006 2005 2004 2003 2002
No.ofdeliverypoints(millions) 1.998 �.875 �.765 �.685 �.598
Postofficenetwork:
Companypostoffices 84 88 90 92 96
Sub-postoffices 1,277 �,32� �,365 �,4�7 �,584
Postalagencies 171 �6� �59 �49 86
1,532 �,570 �,6�4 �,658 �,766
Othercompanypremises 65 63 62 62 58
No.ofmotorvehicles 2,991 2,905 2,908 3,0�� 2,9�7
Personnel
2006 2005 2004 2003 2002
(Staffnumbersat3�December)
Headquarters 551 562 567 588 675
Savings/Remittanceservices 286 295 299 327 340
Inspection 38 37 45 47 49
Postmen/postwomen 4,207 4,326 4,520 4,680 4,722
Postalsorters 1,369 �,�97 �,3�3 �,28� �,2�5
Postofficeclerks 1,024 �,042 �,094 �,�26 �,�45
Othergrades 665 708 790 8�7 803
Temporary 1,311 �,298 �,0�9 �,0�0 864
TotalAnPoststaff 9,451 9,465 9,647 9,876 9,8�3
TotalAnPoststaff(FTE)¹ 8,868 8,966 9,�64 9,4�� 9,4�6
Casualstaff(FTE)² 423 377 358 386 349
Overtimehours(FTE)³ 2,006 �,953 �,9�8 2,�2� 2,8�3
GrandTotal(FTE) 11,297 ��,296 ��,440 ��,9�8 �2,578
Subsidiarycompanies 487 492 577 622 577
Postmasters:Engagedasagents 1,277 �,32� �,365 �,4�7 �,584
�FTE=Fulltimeequivalent
2Weeklyaverage
3WeeklyaverageovertimehoursconvertedtobasichoursinFTE
OperationalStatistics
78 AnPostAnnualReport2006
2006 €m
2005 €m
2004 €m
2003 €m
2002 €m
VALUEOFSAVINGSSERVICESFUNDS
AT31DECEMBER(note�) 5,863 5,668 5,3�� 5,004 4,794
COUNTERS:BusinessValue
RemittanceServices
Postalmoneyordersissued 418 422 496 564 6�9
PostOfficeSavingsServices
Savingsbankdeposits 850 8�� 8�2 792 746
Savingsbankwithdrawals 807 638 645 62� 590
Savingscertificatesissued 469 400 4�7 347 2�7
Savingscertificatesrepaid 1,052 725 88� 757 6��
Instalmentsavingsissued 97 78 72 67 63
Instalmentsavingsrepaid 114 �04 �3� �34 �47
Savingsbondsissued 673 475 505 469 263
Savingsbondsrepaid 626 362 329 360 332
Pensions,AllowancesandSocialWelfareBenefits
Childbenefitspaid 1,119 �,��6 �,�0� �,�0� �,0�6
Unemploymentbenefitspaid 1,587 �,075 �,069 �,042 990
Oldagepensionspaid 1,577 �,225 �,�95 �,�40 �,083
Widows/orphanspensionspaid 900 865 8�5 766 726
Otherallowances 1,900 2,34� 2,228 2,�67 2,060
Other
Miscellaneous 3,658 3,325 2,969 2,3�6 �,679
2006000’s
2005000’s
2004000’s
2003000’s
2002 000’s
BILLPAYVOLUMES 25,510 24,777 23,329 2�,238 �7,533
TVLICENCESALES 1,339 �,273 �,24� �,�76 �,�67
Note�:TheassetsandliabilitiesoftheSavingsServicesvestintheMinisterforFinanceand,accordingly,are
notincludedinthefinancialstatementsoftheCompany.
OperationalStatisticscontinued