La Poste Belgium closes a difficult financial year 2001

La Poste S.A.'s current earnings for 2001 amount to 42.6 million euros, significantly down on 2000. This result is due, on the one hand, to a very modest growth in turnover and, on the other hand, to a considerable increase in costs for both personnel and IT. After posting the extraordinary income, financial year 2001 of La Poste S.A. shows a net profit available for distribution of 38.4 million euros.

Financial year 2001 closes with a profit available for distribution of 38.4 million euros compared with a loss of 277.2 million euros in 2000. This mainly results from the entering of extraordinary expenses (383.4 million euros), incurred in particular by the restructuring plan (297 million euros).

Operating income stood at 1.98 billion euros at the close of 2001.

Turnover amounts to 1.82 billion euros. 81% is generated by the Mail business unit, with La Poste Financière generating 9.2% of turnover, Taxipost 4%, Retail 2.8%, Postage Stamps and Philately 1.7%.
Turnover is up by 1.9% in comparison with the 2000 financial year. This weak growth can be explained by a particularly disappointing December, tangibly down on the previous year.
Financial income came to 26.6 million euros.
Operating expenses amount to 1.944 billion euros.

The main expense item, i.e. salaries, social security and pensions (77% of La Poste S.A.’s current expenses), is up by 7.4%. This increase is mainly due to measures set out within the framework agreement (costs linked to operational improvement initiatives, the mobility of personnel, various bonuses and the increase in wages of young postmen). The measure granting early retirement at 57 also entered into force, with the number of early retirements in 2001 standing at 425.
The miscellaneous services and assets, which represent 20.7% of the running costs, have increased by 16.8%. This rise is broadly due to the IT modernisation process.
Depreciations amount to 65 million euros, but are offset by write-back of provisions and reductions in value of 49 million euros.
Financial charges remain weak at 7.6 million euros.

BALANCE SHEET
The balance sheet total amounts to 1.64 billion euros on 31 December 2001, compared with 1.48 billion euros in 2000, that is to say an increase of 10.8%.

Assets
Fixed assets (excluding financial fixed assets) fell by 4.91 million euros in comparison with financial year 2000.
The increase of 66.67 million euros in financial fixed assets can be justified, among other factors, by various holdings in associated companies, for a total of 197.09 million euros. By way of precaution, a reduction in the value of certain holdings was carried out for an amount of 15.75 million euros at the end of financial year 2001.
As far as current assets are concerned, short-term receivables are up by 33% in comparison with 2000, having reached 225.29 million euros, following a rise in the trade receivables. Compared with the previous financial year, short-term investments are down by 41.3 million euros.
Liabilities
Compared with financial year 2000, long-term debts (advances by the Banque de La Poste) remain unchanged.
As regards short-term debts, an increase of 261.28 million euros can be observed. This increase is mainly due to the reclassification of the provision for holidays and rest as a debt payable within one year (tax, salary and social debts). A second factor that brings about a reduction in provisions (-224,69 million euros compared with 2000), is due to the use of provisions to face up to the obligations of the company in terms of holidays prior to retirement.
Capital and reserves are up by 36.48 million euros, an amount that corresponds to the profit available for distribution.
Forecasts 2002
The forecasts for financial year 2002 are cautiously positive. We should witness an upturn in income thanks to the economic recovery and the improvement in quality.
Parallel to this, the main expense item (salaries, social security and pensions) will witness a more moderate increase in 2002 than during the previous financial year. Furthermore, the number of projects has also been tangibly reduced, which should make it possible to considerably reinforce the efficiency of the implementation of key projects.
Management will concentrate its efforts on improving the overall operational management of the group.