New Zealand Post 1997-98 annual report.
New Zealand Post: 1997/98 Annual Repor http://www.nzpost.co.nz/nzpost/corporate/98anrep/index.htm
OTHER INFORMATION 1997-98 Annual Report
Annual and Half-Year
Reports
Media Releases 1997/98 – The Year in Review
New Zealand Post – The
Last Ten Years Chairman's Letter
The Future of Post About New Zealand Post
Facts about Deregulation Chief Executive's Letter
Relative Postal Rates Making Money
Winning Customers
Building Relationships
Delivering the Future
The Board
Statement of Corporate Governance
Six Year Trend Statement
Financial Statements
Remuneration
Statutory Information
Delivery Performance
Directory
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Year in Review — 1997/98 Annual Report http://www.nzpost.co.nz/nzpost/corporate/98anrep/review.htm
REPORTS AND MEDIA 1997-98 Annual Report
RELEASES
1997-98 Annual Report Year in Review
Year in Review Deregulation of standard letter market from 1 April
Chairman's Letter 1998.
Financial Statements
1997-98 Half Year Report Tax paid profit of $18.0 million – operating dividend to
shareholders of $15.0 million.
1997 Annual Report
1996 Annual Report Capital expenditure of $53.3 million.
Total mail volume 1.431 billion items – letter growth of
OTHER INFORMATION 2.4% lowest since 1992.
Annual and Half-Year CourierPost volume growth of 16% – courier network of
Reports 555 owner/drivers.
Media Releases
New Zealand Post – The Acquisition of XP Group (NZ) Ltd, January 1998.
Last Ten Years Rural delivery points exceed 150,000 for first time.
The Future of Post Retail network expands to 1,025 Post Shops and Post
Facts about Deregulation Centres including 130 franchised Post Shops.
Relative Postal Rates Installation of leading edge mail processing technology –
complete by end 1998.
Completion of new Mail Service Centres in Auckland
(International), Dunedin, Tauranga and Whangarei.
Successful Compulsory Retirement Savings Scheme
referendum by postal voting and Maori Electoral option.
Launch of direct marketing magazine Focus and "Find
'em, Keep 'em" marketing toolkit for small businesses.
Early negotiation of two year employment contract with
New Zealand Post people.
Financial Performance
1998 1997
Operating revenue: $706.3 million – $675.5
up 4.6% million
Operating expenditure: $635.4 million – $597.5
up 6.3% million
Operating surplus (before $79.7 million – $78.0
abnormal items): up 2.1% million
Net earnings: $18.0 million – $47.7
down 62.3% million
Dividend: $15.0 million – $28.6
down 47.7% million
– special dividend Nil $85.0
million
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Year in Review — 1997/98 Annual Report http://www.nzpost.co.nz/nzpost/corporate/98anrep/review.htm
m ll on
– cps (excl. special 12.46 cps 23.85 cps
dividend)
Issued and paid-up capital: 120.0 million 120.0
million
Shareholder's funds: 185.4 million up 178.6
3.8% million
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Chairman's Letter — 1997/98 Annual Report http://www.nzpost.co.nz/nzpost/corporate/98anrep/chair.htm
1997-98 Annual Report
Chairman's Letter
Four years ago when I became Chairman, New Zealand Post
operated in an environment where letter growth was strong,
the economy was buoyant and we were competing well with
other businesses.
While we continue to compete strongly, both the economy
and letter growth have slowed. The operating surplus before
interest, tax and abnormal items (restructuring costs and a
GST adjustment) of $79.7 million (1997: $78.0 million) is a
REPORTS AND MEDIA good result in this environment. At 11.3% of revenue (1997:
RELEASES 11.5%), this represents a future benchmark for our business in
1997-98 Annual Report a competitive, stable-price environment.
Year in Review
Chairman's Letter Restructuring and other costs incurred in preparing for
Financial Statements competition led to a reduction in after-tax profit to $18.0
1997-98 Half Year Report million (1997: $47.7 million). The Directors have
recommended an operating dividend for the year of 12.46
1997 Annual Report cents per share (1997: 23.85 cents per share), an amount of
1996 Annual Report $15.0 million (1997: $28.6 million).
OTHER INFORMATION The significant reduction in net earnings should be seen as a
Annual and Half-Year one-off result. We have invested in technology and the
Reports capabilities of our people. The benefits will show in our future
Media Releases competitiveness.
New Zealand Post – The
Last Ten Years The underlying fundamentals of the business are sound.
The Future of Post Operating revenue growth of 4.6% (1997: 3.3%) is still twice
Facts about Deregulation that expected of the economy.
Relative Postal Rates
This growth was driven by the demand for the company's
services, particularly in the courier and parcels area. Prices
have remained stable across the board.
Over and above this, New Zealand Post acts for the social
good of all New Zealanders. Through our Deed of
Understanding with the Government, signed in February
1998, we continue to pledge universal service to all New
Zealanders. This agreement gives the company and the people
of New Zealand reassurance in the services and standards that
will be provided.
While the Deed commits New Zealand Post to an agreed set
of social obligations, our decision-making is, at all times,
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Chairman's Letter — 1997/98 Annual Report http://www.nzpost.co.nz/nzpost/corporate/98anrep/chair.htm
based on commercial objectives. Consistent with our business
scope, we must have the freedom to be creative and
innovative in the products and services we offer our
customers which, in turn, will strengthen the company. The
benefits of such investment are returned to our shareholders.
This is particularly important now the Postal Services Act,
which came into force on 1 April 1998, has deregulated the
standard letter market, eliminating what was New Zealand
Post's monopoly on that service.
The deregulated letter market brings a new level of
uncertainty for our business. We cannot predict the impact on
our market share. While we accept a competitive market leads
to new growth and better value for customers, the short-term
effect on New Zealand Post is likely to be adverse. However,
the experience we have gained from competing in every other
market in which we are involved will stand us in good stead.
My thanks to the Board whose experience in the commercial
sector and with New Zealand Post has been invaluable.
During the year, Patsy Reddy resigned after 4 1 /2 years, and
while all Board members wish her well, her experience will
be sadly missed.
My thanks also to Chief Executive Elmar Toime, the senior
management team and all the people of New Zealand Post for
their efforts in the past 12 months. While it has been a tough
year, at times frustrating and uncertain, I believe we have built
the foundation from which we can view the future of the
company with confidence.
We have the history, the knowledge, the ability and the
commitment. Right across the organisation, we have a proven
track record of excellence, an innovative outlook and a fierce
determination to succeed.
New Zealand's Post is ready for the new era of deregulation.
Ross Armstrong
