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GROUP FINANCE DEPARTMENT44 BD DE VAUGIRARD — 75757 PARIS CEDEX 15
Tél. : +33 (0)1 55 44 00 00www.legroupe.laposte.fr
La Poste – Société anonyme with a capital of €3,800,000,000 – 356 000 000 RCS PARIS – Head office: 44 BOULEVARD DE VAUGIRARD – 75757 PARIS CEDEX 15
Registrationdocument
2013
Regi
stra
tion
docu
men
t 201
3 - L
e Gr
oupe
La
Post
e
A public limited company with share capital of €3,800,000
Head office: 44, boulevard de Vaugirard, 75015 Paris
Siren No.: 356 000 000
Registration document
2013Annual financial report
This registration document contains all of the information that forms part of the annual financial report.
The original French version of this registration document was filed with the Autorité des marchés financiers (French Financial
Markets Authority) in accordance with Article 212-13 of its General Regulations, 12 March 2014. It may be used in connection
with a financial transaction if it is supplemented by a transaction note (note d’opération) endorsed by the AMF. This document
has been drawn up by the issuer and is binding on its signatories.
Pursuant to Article 28 of European Commission (EC) Regulation No.809/2004, the following is included by reference in this
registration document:
• the consolidated financial statements of Le Groupe La Poste for 2012 and the corresponding Statutory Auditors' report
reproduced in paragraphs 20.1.1 and 20.1.2 of the 2012 registration document, filed with the AMF on 28 March 2013 under
number R13-009;
• the consolidated financial statements of Le Groupe La Poste for 2011 and the corresponding Statutory Auditors' report
displayed in paragraphs 20.1.1 and 20.1.2 of the 2011 registration document, filed with the AMF on 20 April 2012 under
number R12-012.
This document is a free translation from French into English and has no other value than an informative one. All possible care has been taken to ensure that the translation is an accurate presentation of the original. Should there be any difference between the French and the English version, only the text in French language shall be deemed authentic and considered as expressing the exact information published by Le Groupe La Poste.
Copies of this registration document are available free of charge from La Poste, 44, boulevard de Vaugirard, 75015 Paris, as well as on its website, at www.laposte.fr, and on the French Financial Markets Authority website at www.amf-france.org.
Contents
Person responsible 5
1.1 Person responsible for the registration document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.2 Declaration from the person responsible for the registration document . . . . . . . . . . . . . . 6
Statutory Auditors 7
2.1 Regular Statutory Auditors . . . . . . . . . . . . . . . . 82.2 Alternate Statutory Auditors . . . . . . . . . . . . . . . 8
Le Groupe La Poste profile and selected financial information 9
3.1 Overview: a major multi-business services group . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.2 History and milestones in the development of the Group’s business activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.3 Selected financial information . . . . . . . . . . . . 123.4 Group strategy . . . . . . . . . . . . . . . . . . . . . . . . . 14
Information on the Company 17
4.1 Company name . . . . . . . . . . . . . . . . . . . . . . . . . 184.2 Registration place and number . . . . . . . . . . . 184.3 Date of incorporation and duration of the
Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184.4 Head office, legal status and governing
law applicable . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Overview of business activities 19
5.1 Presentation of business activities . . . . . . . . 205.2 Digital services are central
to Le Group La Poste . . . . . . . . . . . . . . . . . . . . 715.3 Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 775.4 Social and Environmental Responsibility . . . 905.5 Quality of customer relations . . . . . . . . . . . . 1025.6 Exceptional events . . . . . . . . . . . . . . . . . . . . . 1045.7 Dependence on patents . . . . . . . . . . . . . . . . . 104
Simplified organization chart 105
Property, plant and equipment 109
7.1 The Group’s assets . . . . . . . . . . . . . . . . . . . . . 1107.2 Environment and sustainable development 111
Innovation and intellectual property 113
8.1 Innovation in action . . . . . . . . . . . . . . . . . . . . 1148.2 Intellectual property policy . . . . . . . . . . . . . . 116
Risk factors 117
9.1 Risk management system and methods for identifying and handling risks . . . . . . . . . 118
9.2 Strategic risks . . . . . . . . . . . . . . . . . . . . . . . . . 1199.3 Operational risks . . . . . . . . . . . . . . . . . . . . . . 1229.4 Financial risks . . . . . . . . . . . . . . . . . . . . . . . . 1249.5 Legal and regulatory risks . . . . . . . . . . . . . . 1299.6 Policy of covering certain risks
with insurance . . . . . . . . . . . . . . . . . . . . . . . . 131
Review of the financial position and results 135
10.1 Highlights 2013 . . . . . . . . . . . . . . . . . . . . . . . . 13610.2 Summary of Le Groupe La Poste
consolidated results . . . . . . . . . . . . . . . . . . . 14610.3 Operating results by business segment . . . 14910.4 Other income statement aggregates . . . . . . 16110.5 Debt and financial strength . . . . . . . . . . . . . . 16210.6 Analysis of the parent company financial
statements . . . . . . . . . . . . . . . . . . . . . . . . . . . 16910.7 Other financial information . . . . . . . . . . . . . . 17210.8 Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . 17310.9 Post balance sheet events . . . . . . . . . . . . . . . 173
Cash, cash equivalents and equity 175
Outlook 177
Profit forecasts or estimates 179
Administrative, management and supervisory bodies and Executive Management 181
14.1 Board of Directors . . . . . . . . . . . . . . . . . . . . . 18214.2 Executive Management . . . . . . . . . . . . . . . . . 18914.3 Absence of family ties, convictions
and conflicts of interest . . . . . . . . . . . . . . . . . 193
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Remuneration and benefits 195
15.1 Remuneration and benefits paid to corporate officers . . . . . . . . . . . . . . . . . . . 196
15.2 Total provisions and amounts recognised for pensions and other benefits . . . . . . . . . . . 200
Operations of administrative bodies 201
16.1 Duties of the Board of Directors . . . . . . . . . . 20216.2 Activity of the Board of Directors in 2013 . . 20416.3 Assessment of the operation
of the Board of Directors . . . . . . . . . . . . . . . . 20416.4 Board Committees within the Board
of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . 20516.5 Internal control . . . . . . . . . . . . . . . . . . . . . . . . 20716.6 Compliance with the system of corporate
governance in force in France . . . . . . . . . . . . . 208
Employees 209
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . 21017.1 Change in staff numbers . . . . . . . . . . . . . . . . 21017.2 A responsible employment policy . . . . . . . . 21017.3 Professional development, training
and promotion policy . . . . . . . . . . . . . . . . . . . 21117.4 Diversity and equal opportunity . . . . . . . . . . 21517.5 Health and safety—Quality of life at work . . 21817.6 Players in HR support . . . . . . . . . . . . . . . . . . 21917.7 General remuneration policy . . . . . . . . . . . . 22017.8 Staff policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22217.9 Employee shareholding . . . . . . . . . . . . . . . . . 22717.10 Summary of employee information . . . . . . . 227
Principal shareholders 231
18.1 Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . 23218.2 Control of La Poste . . . . . . . . . . . . . . . . . . . . . 23218.3 Known agreement that could lead
to a change of control . . . . . . . . . . . . . . . . . . . 232
Related-party transactions 233
19.1 Relations with the French Government and public sector companies . . . . . . . . . . . . 234
19.2 Relations with consolidated companies . . . 235
Financial information regarding the assets and liabilities, financial position and results of the issuer 237
20.1 Consolidated financial statements . . . . . . . . 23820.2 Separate financial statements . . . . . . . . . . . 37920.3 Dividend distribution policy . . . . . . . . . . . . . . 42620.4 Legal and arbitration proceedings . . . . . . . . 42620.5 Material change in the Company’s
financial or commercial position . . . . . . . . . 426
Additional information 427
21.1 Share capital . . . . . . . . . . . . . . . . . . . . . . . . . . 42821.2 Memorandum of association
and articles of association . . . . . . . . . . . . . . 430
Material contracts 435
Third-party information, statements by experts and declarations of interest 437
Publicly available documents 439
Information on equity investments 441
Appendices 443
A1 Chairman's report on corporate government, internal control procedures and risk management in respect of 2013 . . . . . . . . . . . . . . . . . . . . . . 445
A2 Statutory Auditors' report, prepared in accordance with Article L. 225-235 of the French Commercial Code, on the report of the Chairman of the Board of Directors of the company La Poste . . . . . . . . . . . . . . . . . . 489
A3 Summary of information pertaining to the social and environmental consequences of the business activities, and societal commitments in favour of sustainable development . . . . . . . . . . . . . 493
A4 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 509A5 Cross reference table . . . . . . . . . . . . . . . . . . 519
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Registration document 2013 / LE GROUPE LA POSTE4
5Registration document 2013 / LE GROUPE LA POSTE
1
1.1 Person responsible for the registration document 6
1.2 Declaration from the person responsible for the registration document 6
Person responsible
Registration document 2013 / LE GROUPE LA POSTE6
1Person responsible Person responsible for the registration document
1.1 Person responsible for the registration document
Mr Philippe Wahl
Chairman and Chief Executive Officer
La Poste
1.2 Declaration from the person responsible
for the registration document
Having taken all reasonable care to ensure that such is the case, I certify that the information contained in this registration
document is, to the best of my knowledge, in accordance with the facts and contains no omission likely to affect its import.
I declare that, to the best of my knowledge, the financial statements have been drawn up in accordance with the relevant
accounting standards and give a true and fair view of the assets and liabilities, financial position and results of the Company
and all the companies included in the consolidation, while the management report (pages 135 to 174 of this registration
document) gives a true and fair view of changes in the business, results and financial position of the Company and all the
companies included in the consolidation, as well as a description of the main risks and uncertainties they face.
The Statutory Auditors have provided me with a completion letter indicating that they have verified the financial position
and accounting information in this report and have read this same document in its entirety. This letter does not contain any
comments.
The historical information relating to La Poste presented in this registration document has been audited by the Statutory
Auditors whose reports are reproduced on pages 376 and 424 of this document. In the report relating to the consolidated
financial statements for the year ended 31 December 2013, the Statutory Auditors, without qualifying their opinion, have
drawn the reader's attention to the matter set out in Notes 2.1.A and 29 to the consolidated financial statements which set
out the change in accounting policies from the application of the revised standard IAS 19, related to employee benefits.
Chairman and Chief Executive Officer
Philippe Wahl
7Registration document 2013 / LE GROUPE LA POSTE
2
2.1 Regular Statutory Auditors 8
2.2 Alternate Statutory Auditors 8
Statutory Auditors
Registration document 2013 / LE GROUPE LA POSTE8
2Statutory Auditors Regular Statutory Auditors
2.1 Regular Statutory Auditors
Mazars
Represented by Guy Isimat-Mirin and Dominique Muller
Tour Exaltis
61, rue Henri-Regnault
92400 Courbevoie
Mazars was appointed by the inter-ministerial decree of
18 September 1991 and reappointed by the inter-ministerial
decrees of 17 October 1997, 20 June 2003 and 29 June 2009.
KPMG
Represented by François Caubrière and Isabelle Goalec
1, cours Valmy
92923 Paris-La Défense Cedex
KPMG was appointed by the inter-ministerial decree of
29 June 2009.
2.2 Alternate Statutory Auditors
Serge Castillon
Tour Exaltis
61, rue Henri-Regnault
92400 Courbevoie
Philippe Mathis
1, cours Valmy
92923 Paris-La Défense Cedex
Serge Castillon and Philippe Mathis were appointed by the inter-ministerial decree of 29 June 2009.
The current terms of the regular and alternate Statutory Auditors will expire at the end of the Ordinary General Meeting
called to approve the financial statements for the year ending 31 December 2014.
9Registration document 2013 / LE GROUPE LA POSTE
3
3.1 Overview: a major multi-business services group 10
3.2 History and milestones in the development of the Group’s business activities 10
3.3 Selected financial information 12
3.4 Group strategy 14
Le Groupe La Poste profile
and selected financial information
Registration document 2013 / LE GROUPE LA POSTE10
Le Groupe La Poste profile and selected financial information Overview: a major multi-business services group3
3.1 Overview: a major multi-business services group
Le Groupe La Poste is a major services group that today
ranks among France's top 25 groups by revenue. It is also
France's leading employer after the French government
with nearly 266,400 employees.
In 2013, the Group had revenues of €22,084 million, of which
17.6% in international markets, and an operating profit of
€770 million.
Comprised of the parent company (La Poste S.A.) and its
subsidiaries, Le Groupe La Poste has opted for a multi-
business group structure. It is organised around its core
Business Lines:
Mail (47.4% of the Group’s operating revenue in 2013);
Parcels-Express (26.9% of the Group’s operating revenue
in 2013);
Banking activities (25.0% of the Group’s 2013 operating
revenue) through La Banque Postale.
Since May 2011, the Group has also been marketing a
mobile telephone services business as a virtual network
operator (1) under the brand La Poste Mobile.
The marketing and delivery of services are, according to
needs and evolving lifestyle trends, supported by:
a network of 17,081 postal outlets in France, directly-
owned or held in partnership with local authorities or
merchants. More than 96% of French people live within
five kilometres of a postal outlet;
a network of 7,000 parcel PickUp and DropOff points
(PUDOs);
letter and parcel delivery rounds, organised in order for
Mail and Parcels to service 26 million French households
per day;
web-based and other remote channels ensuring an
increasing proportion of sales activities, customer
relations and after-sale services.
La Poste has been tasked by the French government with
four public service missions at the heart of its identity. Fully
integrated into its operations, they remain central to Group
strategy: the Universal Postal Service, press transportation
and delivery, regional planning and development and
banking accessibility (see Chapter 5, Section 5.3).
The conditions governing the performance of these
missions are set by public service agreements between
La Poste and the French government. The agreement
currently in force was signed on 1 July 2013 and covers the
2013-2017 period: reaffirming its public service missions,
it also enables Le Groupe La Poste to commit to public
citizenship responsibilities by contributing as a public
company to developing policies in the general interest (see
Chapter 5, Section 5.3.2). With regards to regional planning
and development, on 16 January 2014 La Poste, the French
government and the French Mayors Association (Association
des Maires de France), signed the 2014-2016 local postal
coverage agreement (see Chapter 5, Section 5.3.2.2).
And finally, the Group has consistently been a major player
in regional development. La Banque Postale's launch in
2012 as a provider of local authorities financing highlights
this positioning.
La Poste's close ties with the French people reflect its long
history which runs deep into their regions, their daily life
and their imagination.
3.2 History and milestones in the development
of the Group’s business activities
Without going too far back in time, La Poste, as a company,
grew out of the Post and Telecommunications Ministry,
established as the “ministère des Postes et Télégraphes”
in 1879. The first post offices appeared before this, dating
back to the end of the 16th century; the first town postmen
appeared in 1760, and the first stamp was created in 1849.
From 1881, the initial financial activities were extended to
(1) MVNO: Mobile Virtual Network Operator. La Poste Mobile uses the mobile phone network of SFR.
11Registration document 2013 / LE GROUPE LA POSTE
Le Groupe La Poste profile and selected financial information History and milestones in the development of the Group’s business activities 3
The key rules that continue to govern mail delivery today
were put in place in the first half of the 19th century, with
the development of a network of public outlets across the
country and the establishment of a rural service in 1830
allowing postmen to move out into the countryside, with
daily delivery beginning from 1832.
From 1923, Post and Telecommunications were granted a
separate budget from the French government; a situation
that would continue under the 1959 French organic law on
Finance laws.
La Poste and France Telecom were given legal entity status
and financial autonomy by French Act 90-568 of 2 July 1990
on the restructuring of the postal and telecommunications
public service. La Poste therefore became a public sector
operator, the status of which was confirmed as an EPIC
(établissement public à caractère industriel et commercial,
or Public Industrial and Commercial Establishment) by
the French Council of State in 1998. As at 1990, it was
equipped with a tripartite Board of Directors governed by
the provisions of law on the democratisation of the public
sector. The law gave La Poste the management autonomy
it needed to push forward with its development strategy.
La Poste was allowed to freely manage its assets while
ensuring the financial stability of its business activities.
Having its autonomy, La Poste laid down its main strategic
priorities via plans designed to ensure growth in its
business activities and financing for capital expenditure,
to successfully carry out its public service missions
and to preserve its social model. A number of planning
agreements have been entered into by La Poste and the
French government, setting out the Company’s strategy and
the goals regarding the public service missions entrusted
to La Poste.
Since 2008, and pursuant to the New Economic Regulations
Act (Nouvelles Régulations Économiques or NRE), two
separate documents are submitted to the Board of
Directors: a business contract signed by the French
government and La Poste, setting public service mission
objectives and a business plan, defining the company
strategy. A new business contract was signed on 1 July 2013
for 2013-2017. On 28 January 2014, a new strategic plan
for 2014-2020 was presented to the Board of Directors. The
financial business plan will be presented in mid-2014 (see
Section 3.4).
Over the past decade, Le Groupe La Poste has transformed
itself while continuing to carry out the public service
missions assigned to it under French legislation. It has
completely reorganised itself by Business Lines and has
undertaken the modernisation of its industrial and logistics
facilities in order to increase efficiency and quality as well
as introduce new services. It has enhanced its distribution
network through modernisation measures and developing
resource sharing, in particular for local and intercommunal
postal agencies (APCs) and Relais-Poste outlets (RPs)—see
Chapter 5, Section 5.1.4.1.2. In the Express business, it has
built one of the leading European networks by establishing
the GeoPost holding company. It has developed a retail
banking activity with a comprehensive offering: the French
law of 20 May 2005 on the regulation of postal business
enabled La Poste to establish La Banque Postale on the
basis of La Poste’s former financial services business.
These developments have resulted in the creation and
acquisition of subsidiaries in its different Business Lines,
transforming Le Groupe La Poste into a major services
group while it continues to assure its public service
missions.
The Group's markets have also undergone major
transformations in recent years, impacted in particular by
an activity fully opened up to competition since 1 January
2011, when the postal service monopoly ended through
the complete deregulation of the sector, the digitisation of
information flows or the development of online commerce.
La Poste's transformation into a public limited company)
on 1 March 2010, in accordance with the law of 9 February
2010, enabled it to establish a share capital and gain
access to financing through capital increases, an essential
prerequisite to finance an investment plan and major
developments to manage the new challenges in its different
markets.
In connection with the €2.7 billion capital increase
adopted by the Board of Directors in February 2011, the
Group welcomed a new shareholder, Caisse des Dépôts
et Consignations, alongside the French government. This
capital increase was carried out through three payments: a
first €1,050 million payment was paid in April 2011, followed
by a second €1,050 million payment in April 2012. The third
and last payment for €600 million was made in spring 2013.
These payments have notably allowed the Group to execute
and accelerate its development and innovation initiatives
while improving its financial structure.
The law of 9 February 2010 set out the principles
underpinning the change in status. Legal and financial
continuity in terms of assets and liabilities between La Poste
and La Poste S.A. is guaranteed. All of the share capital
can be held by the French government, by legal entities
belonging to the public sector or by employees. Employees
retain their rights, in particular those with the status of
state employee. As at 1 March 2010, state employees are
employed by La Poste S.A. pursuant to Article 29-4 of the
French Postal law of 9 February 2010.
In addition, the four public service and general interest
missions assigned to La Poste were confirmed by the
law of 9 February 2010. These missions defined by
Article 2 of the French law of 2 July 1990 as amended,
were previously guaranteed by the law of 20 May 2005
Registration document 2013 / LE GROUPE LA POSTE12
Le Groupe La Poste profile and selected financial information Selected financial information3
governing the regulation of postal business—which had
also implemented a regulation governing postal business
assigned to the Autorité de régulation des communications
électroniques et des postes (ARCEP), the French regulator
of the electronic communications and postal sectors. The
undertakings of La Poste and the French government with
respect to public service were redefined by the 2013-2017
business contract signed on 1 July 2013, providing for the
maintenance of a large scope for its public service missions,
a further reinforced quality trajectory, missions in line with
user expectations and technological developments, the
implementation of corporate citizenship commitments in
favour of territories and businesses as well as the most
vulnerable, the development of the digital society and CSR.
In terms of social model, La Poste's goal is to be an
exemplary corporate citizen with respect to well-being
at work. On 22 January 2013, La Poste management and
the unions CFDT, FO, CGC-UNSA and CFTC signed an
agreement making specific and innovative commitments
focusing on improving Quality of life at work. This agreement
reflected the Group commitment resulting from the "Major
Dialogue" launched in 2012 on the subject of Quality of life
at work (see Chapter 17).
On 4 July 2013, the Chairman and Chief Executive Officer, Jean-
Paul Bailly, informed the Board of Directors of his intention not
to complete his term of office. He was replaced by Philippe
Wahl who assumed his functions on 26 September 2013.
Finally, 2013 was marked, on 4 July, by the presentation of a
strategic project. Through information drawn from a participative
approach based on a consultation with all La Poste's
stakeholders including more than 150,000 employees, this
strategic project laid the foundations for a new strategic
plan presented to the Board of Directors on 28 January 2014
(see Chapter 3, Section 3.4).
3.3 Selected financial information
The 2012 and 2013 selected financial information presented
below is taken from Le Groupe La Poste's consolidated
financial statements, which have been prepared in
accordance with IFRS.
This information must be read in conjunction with the
following sections of the registration document:
the consolidated financial statements in Chapter 20;
the Group’s financial and operating review in Chapter 10;
the cash flow analysis in Chapter 11.
3.3.1 Consolidated income statement
(€ million) 2013 2012
Operating revenue 22,084 100% 21,658 100%
Operating profit 770 3.5% 816 3.8%
Financial profit/(loss) (223) -1.0% (284) -1.3%
Income tax (127) (231)
Consolidated net profit 420 301
Share in profits of equity associates 215 1.0% 180 0.8%
Attributable to non-controlling interests 8 2
Net profit, Group share 627 2.8% 479 2.2%
13Registration document 2013 / LE GROUPE LA POSTE
Le Groupe La Poste profile and selected financial information Selected financial information 3
3.3.2 Consolidated balance sheet
(€ million) 2013 2012
Intangible assets (including goodwill) 2,404 2,387
Property, plant and equipment 5,941 6,062
Investments in equity associates 2,634 2,446
Current banking assets 195,837 191,876
Other current assets 6,648 6,661
Total assets 214,677 210,544
Net debt (1) 3,778 3,460
Equity, Group share 8,460 7,470
Contingency and loss provisions 1,746 1,480
Current banking liabilities 190,133 186,883
Net debt(1) is defined in Chapter 10, Section 10.5 and detailed in Note 28.1 of the appendix to the consolidated financial
statements—Chapter 20, Section 20.1.
3.3.3 Changes to net debt
(€ million) 2013 2012
EBITDA 824 915
Cash flows from operating activities 1,056 1,195
of which dividends paid by La Banque Postale 258 186
Cash flows from investing activities (excluding purchases and sales of negotiable debt
securities with maturities of less than 3 months) (1,403) (876)
of which La Banque Postale issuance of subordinated notes (800)
Dividends paid (171) (144)
La Poste S.A. capital increase 600 1,050
Net interest expense (164) (164)
Other items (235) 23
Change in net debt (1) (318) 1,084
The calculation of net debt (1) is presented in Note 28.1 to the consolidated financial statements (Chapter 20, Section 20.1).
This net debt is defined in Chapter 10, Section 10.5. Comments on these changes are provided in Chapter 10, Section 10.5.
(1) Group net debt does not take into account banking activity for which this concept is not relevant.
Registration document 2013 / LE GROUPE LA POSTE14
Le Groupe La Poste profile and selected financial information Group strategy3
3.3.4 Bank ratios
(in %) 2013 2012
Loan to deposit ratio (a) 67% 59%
Total balance sheet assets 200 196
Core Tier 1 Ratio (b) 11.4% 12.1%
(a) Ratio of loans to deposits, defined according to specific rules, excluding savings centralised at CDC.
(b) Basel 2.5 Core Tier 1 Ratio = Core Tier One 2.5 less eligible hybrid capital and after applying the deductions from Tier 1 capital as per CRD Regulation III,
with respect to / Risk Weighted Assets (RWA).
3.4 Group strategy
La Poste's strategy has been laid out in a series of
successive plans designed to develop and finance its
operations while ensuring it meets its public service
missions within the framework of a high-quality social
model.
The "Performance and Convergence" strategic plan, drawn
up for 2003-2007, developed the autonomy of La Poste's
business activities by ensuring that each had its own proper
organization. This plan also allowed the Group to modernise
the Mail industrial facilities and post offices, build a
European network for the Express business and eliminate
the competitive handicaps the Group had inherited from its
past as a government service. This final step was achieved
with the setting up of La Banque Postale in 2005 and the
pension funding reform for state employees working for
La Poste in 2006.
During the 2003-2008 period, the strength of the Group’s
business portfolio was demonstrated and Group earnings
registered sustained improvements. Nevertheless, the
Group remained under-capitalised, with a net debt (1)/equity
ratio of over 2, which might have constrained its growth.
A new “Performance and Trust” plan was adopted for
2008-2012 to continue to prepare the Company for the full
deregulation of its business activities from 1 January 2011.
It has also contributed to widespread adoption of customer
commitments and a responsible development policy.
Furthermore, in 2008 the Government asked the Ailleret
Commission (Commission de développement de La Poste)
to assess the impact of the new competitive environment,
review the various options for the development of the
Group and estimate the funding requirements needed to
achieve them. Given the need to modernise the post office
network, innovate in order to continue developing new
forms of mail (e.g. digitisation), complete the establishment
of the European Parcels-Express network and continue
the development of La Banque Postale, the Commission
put La Poste’s capital requirement at €2.7 billion and
proposed its transformation into a public limited company.
These proposals, approved by the President of the French
Republic in December 2008, paved the way for the adoption
of the law of 9 February 2010, which transformed La Poste
into a public limited company starting from 1 March 2010
with the goal of conducting a capital increase to ensure its
growth and put its financial structure on a sound footing.
In April 2010, Le Groupe La Poste, taking into account the
profound transformation of its model (advent of the digital
society, growing digitisation of data flows) and the financial
crisis followed by the economic crisis since 2008, developed
a new "Ambition 2015" strategic plan. This plan was based
on an investment programme in large part self-financed
and supplemented by proceeds from a €2.7 billion capital
increase approved by the Board of Directors on 10 February
2011 taken up by the French government and the Caisse des
Dépôts et Consignations.
In 2013, faced with the challenge to its historical model
resulting from changes in its economic, regulatory and
technological environment, the Group initiated a broad-
based participative initiative involving an unprecedented
consultation with all its stakeholders: more than
150,000 postal workers, labour organization representatives,
shareholders, Board of Directors' members, associations of
(1) Group net debt does not take into account banking activity for which this concept is not relevant. Ratio of "net debt to equity" dividing Group net debt by
Group share of equity.
15Registration document 2013 / LE GROUPE LA POSTE
Le Groupe La Poste profile and selected financial information Group strategy 3
elected officials and consumers. La Poste also organised
"Citizen Conferences", an initiative rarely used in France,
inviting groups of persons representing rural and urban
areas and micro-business entrepreneurs to work together
and share their expectations about La Poste's services in
the future.
Following this consultation, on 28 January 2014 the
Group presented the major lines of action of it strategic
plan to the Board of Directors. This plan provides for a
major transformation starting in 2014 based on a vision, a
roadmap and an implementation timetable.
This vision puts the human dimension and trust at the
heart of the customer relation, in line with its values,
core missions and La Poste's know-how. With the
convergence of its networks—available to everyone,
everywhere and every day—it is helping its customers to
simplify their future.
The roadmap sets the priority of developing existing
activities and expanding into new areas, while at the
same time assuring and modernizing its public service
missions, developing new missions of general interest
and building a social pact. Improving the company's
competitiveness represents a condition for returning to
sound financial health.
The method and timetable for implementation provide
for presenting, at the end of March 2014, an organization
adapted to the Group and, at the end of June, action
plans and a financial business plan.
The new strategic plan: "La Poste 2020: Conquering the Future" – A growth and development plan at the service of customers
Accelerate the development of existing business activities
Mail aims to consolidate its position as a premium media
for global multi-channel customer relations and become
the number one network for local services. As part of
this objective, ColiPoste will join the Mail Business Line.
Parcels-Express will have as its mission to build the first
hybrid network (BtoB and BtoC) in Europe, with a continental
dimension, and to become the European leader in parcel
delivery to private individuals. The Retail Brand will be
positioned as the reference network for services and public
service missions. Similarly, it will support the commercial
development of La Banque Postale, La Poste Mobile and
the offerings for professionals of all the Group’s Business
Lines. La Banque Postale will accelerate its development by
equipping all its customers, from private individuals (from
the most vulnerable ones to the high-net-worth clients) and
legal entities (especially businesses). Digital activities will
speed up the Group’s digital transformation, spur innovation
in connection with the digital ecosystem, and ensure a
continuous customer experience for all La Poste services,
while developing new business activities, particularly as a
trusted third party in digital exchanges.
Capture new markets
La Poste has significant assets to capture new markets:
values, structural support—its networks, the diversity of
its Business Lines, the commitment of its employees, the
stability of its shareholders, trust—and know-how that is in
tune with the times, where the digital and physical worlds
meet. These new markets are booming:
e-commerce;
local logistics;
assistance to the elderly (silver economy), vulnerable
and/or isolated;
secure digital exchanges;
services related to the connected environment;
the regional social and solidarity economy;
new business activities based on the Group's assets (real
estate management on behalf of third parties, mobile
telephony, Internet and associated services).
Taking a foothold in these new markets, Le Groupe La Poste
will meet the expectations of customers, citizens, regions
and postal workers who want La Poste to continue to
perform critical missions that are still relevant in the digital
age: facilitating exchange, helping to maintain territorial
unity, promoting regional development, strengthening
social cohesion, and maintaining the privacy and security
of correspondence. As with all Group business activities,
these new projects will be undertaken in the context of its
Corporate Social Responsibility (CSR) policy.
Registration document 2013 / LE GROUPE LA POSTE16
Le Groupe La Poste profile and selected financial information Group strategy3
Ensure, modernize, and balance public service missions
La Poste will further improve its level of service quality,
reinforce its fight against financial exclusion and dialogue
with the State on modernizing its public service missions.
Develop new business activities in the public interest
La Poste is currently investigating several opportunities
based on the values of trust and accessibility that could
eventually give rise to new activities in the public interest:
participation in the energy transition (identification of private
individuals’ needs by postmen, loans funded by La Banque
Postale for carrying out works, etc.), creation of a trusted
third-party offering, contribution to the modernization of
public action (participation in the programme to set up local
public services offices, service provision on behalf of the
State, local authorities and public bodies at the post office
and by the postman).
Develop and negotiate a collective agreement
Through this strategic plan, La Poste is developing the
means to control its future, and one of its pillars is to make
each postal worker a key participant and beneficiary of this
transformation. As such, a collective agreement will be
offered for negotiation with the unions. It will focus on six
objectives: training, flexibility, fairness, proximity, solidarity
and trust in the context of expanding strategic and social
dialogue.
Improve the Group's competitiveness and restore its economic health
Lastly, the Group's sustainable development depends
on improving its competitiveness. This requires a
comprehensive effort to control operating costs, adapting
them to changes in the business activity, and to reduce
overhead and structural costs by leveraging synergies
within the Group.
With this new strategic plan, La Poste is taking charge
of its future to restore its economic health and make its
postal workers key participants and beneficiaries of its
transformation. It will accelerate the development of its
existing activities and expand into new markets while
preserving and modernizing its public service missions.
17Registration document 2013 / LE GROUPE LA POSTE
4
4.1 Company name 18
4.2 Registration place and number 18
4.3 Date of incorporation and duration of the Company 18
4.4 Head office, legal status and governing law applicable 18
Information on the Company
Registration document 2013 / LE GROUPE LA POSTE18
Information on the Company Company name4
4.1 Company name
The Company’s name is: “La Poste”, referred to as La Poste in this registration document.
4.2 Registration place and number
The Company is registered in the Paris trade and companies register under number B 356 000 000.
“APE” (activity) Code: 641 A.
4.3 Date of incorporation and duration of the Company
Under Act 90-568 of 2 July 1990, La Poste was incorporated as a public industrial and commercial establishment (EPIC).
La Poste was converted to a société anonyme (French public limited company) by Act 2010-123 of 9 February 2010. The duration
of the Company is 99 years as from 1 March 2010. Barring an early wind-up or an extension, the Company will cease to exist
on 1 March 2109.
4.4 Head office, legal status and governing
law applicable
4.4.1 Head office
The Company’s head office is located at 44, boulevard de Vaugirard, 75015 Paris, France.
The telephone number for the head office is +33 (0) 1 55 44 00 00.
4.4.2 Legal form and governing law
Since 1 March 2010, La Poste has been a public limited company with a Board of Directors, subject to the legal and regulatory
provisions applicable to public limited company unless there have been specific exemptions such as those provided for in Act
83-675 of 26 July 1983 on the democratisation of the public sector, Act 90-568 of 2 July 1990, as amended by Act 2010-123 of
9 February 2010, or by Decree 2010-191 of 26 February 2010, amended by Decree 2010-351 of 1 April 2010.
Rules applying to La Poste as sole provider of the Universal Postal Service are described in Chapter 5, Section 5.3 of this
document.
19Registration document 2013 / LE GROUPE LA POSTE
5
5.1 Presentation of business activities 20
5.1.1 Mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205.1.2 Parcels-Express . . . . . . . . . . . . . . . . . . 315.1.3 Banking Activities . . . . . . . . . . . . . . . . . 435.1.4 La Poste Retail Brand: the
distribution of products and services of the Group’s Business Lines to private individuals and professionals . . . . . . . . . . . . . . . . . 58
5.1.5 Real estate: Poste Immo, a global real estate partner contributing to the Group’s dynamic . . . . . . . . . . . . . 65
5.2 Digital services are central
to Le Groupe La Poste 71
5.2.1 Development priorities for digital ambitions . . . . . . . . . . . . . . . . . . . . . . . . 72
5.2.2 Priorities for transformation . . . . . . . . 75
5.3 Regulations 77
5.3.1 Regulation of Le Groupe La Poste' Business activities . . . . . . . . . . . . . . . . 77
5.3.2 Regulations applicable to public sector missions . . . . . . . . . . . . . . . . . . . 82
5.4 Social and Environmental
Responsibility 90
5.4.1 A CSR policy integrated into the Group's strategy . . . . . . . . . . . 90
5.4.2 Governance of the organization . . . . . . 915.4.3 The Group's ethical approach . . . . . . . 925.4.4 Customer responsibility . . . . . . . . . . . . 935.4.5 Social responsibility . . . . . . . . . . . . . . . 945.4.6 Get involved to preserve
the environment . . . . . . . . . . . . . . . . . . 955.4.7 Dialogue with stakeholders . . . . . . . . . 975.4.8 Working towards the success
of joint projects that contribute to the sustainable performance of the Company . . . . . . . . . . . . . . . . . . . 99
5.5 Quality of customer relations 102
5.5.1 The Service Ambition project . . . . . . 1025.5.2 External recognition of the
customer relationship quality . . . . . . 104
5.6 Exceptional events 104
5.7 Dependence on patents 104
Overview of business activities
Registration document 2013 / LE GROUPE LA POSTE20
Overview of business activities Presentation of business activities5
5.1 Presentation of business activities
Le Groupe La Poste has opted for a multi-business
group structure. Backed by this model, all involved are
able to benefit from commercial synergies, combined
innovations and shared costs through the many and ongoing
collaborations among Business Lines and subsidiaries.
The Group's various business activities have been
structured as Business Lines with their own resources
since 2003, although they are closely interrelated with one
another. Each business activity benefits from the support of
the others, while largely relying on the post office network,
which distributes products and services from Mail, Parcels-
Express and La Banque Postale to retail customers in
France. The Group’s strategy is expressed in each of the
Business Lines through their own programs designed to
meet the targets set.
Since the full deregulation of the mail market in 2011, all of
the Group's markets have been open to competition.
5.1.1 Mail
5.1.1.1 General points and key figures
2013 2012 2013/2012 change
(€ million) amount %
Revenue 11,103 11,410 -307 -2.7%
External revenue 10,461 10,773 -312 -2.9%
Intercompany revenue 642 636 +6 +0.9%
Operating profit 471 684 -213 -31.1%
Mail (1), the historic heart of Le Groupe La Poste, is the
Group's largest Business Line. It accounted for 47% of the
Group's revenue and 61% of its headcount (2) in 2013.
As the second largest European postal service provider in
terms of revenue and volumes, Mail generated revenue
of €11.1 billion and delivered 24.3 billion mail items (all
categories combined) in 2013.
Mail engages in daily contact with private individuals
and companies: it distributes mail six days out of seven
throughout all areas of the country, i.e. 38 million mailboxes
in France's 36,000 districts, via close to 58,000 delivery
rounds, and nearly 97,000 mail collections from, and
deliveries to, companies. Furthermore, Mail also contributes
to disseminating opinions by delivering election materials
and documents and nearly one third of all press volumes.
5.1.1.2 Structure
Mail is organised around the activities of the parent
company and its subsidiaries:
The parent company hosts all the marketing and delivery
activities relating to mail addressed in France.
(1) Mail (with a capital letter) refers to the Group's Business Line formed by the Mail activities of the parent company and of the subsidiaries held by Sofipost
holding company. Historically, Mail's market has been the collection, transportation and delivery of mail (no capitals). This covers mail service within the
generic meaning, including various categories of mail, and specifically addressed mail (e.g. advertising, commercial, administrative or personal mail)
and unaddressed mail (with no name or address—information mailings, and advertising materials).
(2) Weight of Mail personnel, parent company only within Le Groupe La Poste.
21Registration document 2013 / LE GROUPE LA POSTE
Overview of business activities Presentation of business activities 5
The four subsidiaries, attached to the holding company
Sofipost, contribute to the deployment of Mail in
dynamic market segments such as (1) relational
marketing (targeting and management of customer
data), (2) document management solutions and services
(design, printing, routing, digitisation and archiving), data
management including secure electronic exchange),
outsourced process management, (3) press and
e-commerce logistics, and (4) cross-border mail services.
5.1.1.2.1 Parent company regional structure
The organizational structure at the parent company is
divided into three levels:
Executive Management, responsible for strategy, defining
processes and common operating rules. It intervenes
by providing support to Operating divisions and also
manages commercial relations with national major
accounts;
the operating sales and regional management teams,
which are responsible for rolling out the Mail strategy
in the geographical area for which they are responsible:
- the Operational Sales divisions, are assembled into
six Mail Operational Sales divisions (DOCC), working
closely with the Regional Operational divisions in their
catchment areas,
- the Regional Operational divisions, which are
assembled into 40 Mail Regional Operational
divisions, and provide support functions to the
facilities in terms of production, human resources,
finance, communications and controls, and which also
guarantee the quality of the Mail adjustment projects
in their region;
the industrial facilities that include the mail sorting,
processing and distribution activities:
- On 31 December 2013, there were 49 Industrial Mail
Platforms (PIC) and Mail Processing Platforms (CTC).
These sites constitute the network's backbone and
concentrate the sorting capacity in terms of flow
pooling and automation,
- The 239 Mail Preparation and Distribution Platforms
(PPDC) are fully mechanized and computerized
at 31 December 2013. These sites are responsible for
the collection, consolidation and processing of mail,
- Lastly, the 3,091 Mail Distribution Platforms (PDC)
ensure that mail is delivered to all addressees
(private individuals, professionals, companies, and
administrative authorities) six days out of seven.
The Mail Distribution Platforms and the Mail
Preparation and Distribution Platforms are assembled
within 580 facilities.
In Corsica and the French overseas departments, all of
La Poste’s Business Lines share a regional structure
that is reporting both to the Retail Brand and Mail (see
Section 5.1.4.1).
5.1.1.2.2 Sofipost structure
Sofipost’s structure includes four divisions. Each division
plays a key role in developing Mail’s growth:
The Mediapost Communication division covers the
relational marketing value chain. It covers expertise
relating to both online and traditional media to
support local, national and international advertisers
in the implementation of their communication
strategies for their customers and prospects: from
the distribution of advertising materials to online
advertising campaigns(1), from customer knowledge to
performance measurement, including the production of
materials and promotional offerings. In 2013, Mediapost
Communication had generated more than €600 million in
revenue. The company has business activities in France
and Europe (United Kingdom, Belgium, Spain, Portugal,
and Romania). Its subsidiaries include 9,000 employees.
The Docapost division covers all solutions and services
for managing professional data exchanges between
companies and institutions and their target audiences.
Docapost proposes document management solutions
(document management outsourcing, digitisation,
desktop publishing), customer process management
(outsourcing customer relationship management,
industrial processing of files and mail, transactions
and payment solutions) and e-services (electronic
certificates, secure BtoB electronic exchanges,
(1) Online advertising includes space purchasing, use of graphic or visual elements (banner ads,rectangle ads, etc.) referred to as "campaign displays".
Registration document 2013 / LE GROUPE LA POSTE22
Overview of business activities Presentation of business activities5
e-vote). Docapost has 4,600 employees, and generated
consolidated revenue of nearly €440 million in 2013.
The ViaPost division includes all the e-commerce
logistics, transportation, newspaper mail subscription
processing, newspaper delivery (1) and eco-mobility
businesses. Its three core businesses are:
- newspaper and magazine processing activities:
(1) receiving, processing and shipping of press
subscriptions mailed in France and other countries
for the parent company and (2) day and night local
multi-title press delivery to subscribers;
- logistics activities: (1) shipping of mail in France
to processing platforms for the parent company,
(2) preparation of omni-channel orders (BtoC, BtoB
and retail), managing transport and customer
relations for brick-and-mortar and online retailers,
and (3) recycling logistics;
- online activities relating to eco-mobility: consulting
services and optimisation of the use of electric
vehicles in corporate fleets, development of training
tools for driving, transport and eco-responsible
mobility consulting.
ViaPost has 2,500 employees spread between eight
companies, and generated revenues of almost
€500 million in 2013.
The Asendia (2) division is a 50-50 joint venture between
La Poste and Swiss Post, and markets cross-border
mail services outside France. Drawing on the expertise,
the networks of the two partners and their capacity to
support international customers in the distribution
of mail, catalogues, papers and merchandise, in 2013
Asendia reached revenue of €452 million. Asendia has
over 1,000 employees and currently operates on three
continents—Europe, North America, and Asia—and in
15 countries through 25 facilities.
5.1.1.2.3 Logistics network
To deliver mail to private individuals, companies and
administrative authorities promptly six days out of seven,
Mail has determined and implemented a standardized five-
stage process:
Collection/consolidation consists of collecting postal
items deposited in mail boxes on public streets (yellow
mailboxes) and collecting mail from companies and
at mail platforms (in the case of corporate customers
dropping off their postal items) six days out of seven.
All the mail thereby collected is then routed to the Mail
Preparation and Delivery Centres (PPDC), tasked with
pre-sorting, before being moved on to the Industrial Mail
Platforms (PIC) for outward sorting.
Outward sorting consists of using machines to separate
out all the mail collected in a geographic area into
batches corresponding to homogeneous delivery areas.
Transportation combines various modes of transport
(plane, ground and rail) adapted to the urgency of the
mail and the distance of the delivery areas in order to
ship the corresponding batches to the inbound PIC. In
2013, 2.9% of the outflow was dispatched by plane, 92.1%
by ground and 5.0% by rail. Shipments are maximised
by various breakdown and separation points known as
transport hubs.
Sorting on arrival and delivery preparation consist of
dividing up the mail batches by delivery platform and
delivery round. The postal items within the same round
are put in order of delivery by the postman. Small-sized
mail is mainly machine-sorted, while large-sized or
oddly-shaped mail arrives at the PPDC without being
pre-sorted and the postman manually arranges such
mail in his or her pouch.
Delivery carried out by the postmen, is comprised of
letterbox delivery of postal items and personal delivery of
“recorded” items (i.e. registered letters, letters or parcels
that must be counter-signed, etc.).
Mail shipping is backed by a large logistics network, both
on own account and partly sub-contracted.
(1) In contrast to distribution by mail service delivery according to an address indicated on the paper and where the postal worker distributes it as an addressed
mail item, press delivery involves the distribution of an undifferentiated bulk supply of papers according to a list of recipients. Accordingly, press delivery,
often carried out in the early morning, is not a postal service as defined by Directive E97/67/EC, which assumes the distribution of addressed items.
(2) Asendia markets mail processing, routing and distribution services for all destinations (including France) outside France. In contrast, the parent company
is directly responsible for marketing in France.
23Registration document 2013 / LE GROUPE LA POSTE
Overview of business activities Presentation of business activities 5
OVERVIEW OF THE LOGISTICS NETWORK (PARENT COMPANY)
Collection Transport Processing Delivery
141,000 street letterboxes
97,000 pick-up and
delivery customers
328 trucks
8,800 road links
3 TGVs (high speed trains)
11 planes serving
14 destinations
40,000 cars
11,500 motorcycles
14,000 bikes
4,000 electric vehicles (VE)
1,000 quadéos (electric
quad bikes)
15,000 electric bicycles
(VAE)
Nearly 3,400 sites and
600 centres:
3,091 Mail Delivery
Platforms (PDC) and Mail
platforms
239 Mail Preparation and
Delivery Centres (PPDC)
49 Industrial Mail
Platforms (PIC) and Mail
Processing Platforms
(CTC)
58,000 rounds
38 million letterboxes
served six days out of
seven
1.1 million kilometres
covered per day by
postmen
5.1.1.3 Business activities and markets
5.1.1.3.1 Mail customers
Mail's customers include all private individuals and
economic players.
Addressed letter volumes break down accordingly between
companies and private individuals, senders and addressees:
91% of volumes shipped are issued by professionals or
administrations;
72% of volumes delivered are destined for private
individuals;
Mail from one private individual to another represents
only 3% of total volume. Accordingly, 97% of the
14 billion addressed messages processed in 2013
represent economic exchanges (i.e. involving at least one
administration or company).
Key sectors
The bulk of the parent company’s revenue is generated
from a few customer segments. The banking sector (bank
statements, advertising), the public sector (health insurance
statements, assessment notices), the distance sales sector
(catalogues) and the telecommunications sector (mobile
phone bills) are amongst the largest customers of parent
company Mail.
The top 100 customers accounted for 35% of revenue in
2013.
Relations between Mail and the other Business Lines
Mail is closely interconnected with the other Le Groupe
La Poste Business Lines.
The post office network (La Poste Retail Brand) generates
18% of the parent company’s Mail revenue and is also a
collection and delivery supplier (e.g. for registered letters).
The Parcels division is the leading Mail “customer”. Mail
handles a significant portion of deliveries for ColiPoste
(La Poste’s parcels division, which specializes in the delivery
of parcels to private individuals), and accounts for 16% of
its revenue. Mail provides marketing support for three-
quarters of ColiPoste’s customers.
La Banque Postale is one of the parent company Mail
division’s 10 largest customers, and a partner in the
development of its Internet offering.
5.1.1.3.2 Mail areas of business activities
Sending mail serves a number of purposes that compete
with other channels and entities operating in very different
markets. The main uses of mail relate to business
communications (sending quotes, contracts, account
statements, invoices, etc.) that compete directly with
electronic document solutions, commercial development
(advertising mail, direct marketing, printed advertising
material) competing directly with other traditional
advertising media (television, press, radio, poster campaigns
and Internet), information (press and political mailings) and
interpersonal and cross-border communications competing
with other postal operators.
Registration document 2013 / LE GROUPE LA POSTE24
Overview of business activities Presentation of business activities5
Mail thus covers five areas of activity. The first three are
focused on the customer relations market in France and
accounted for 81% of 2013 revenue.
Business communications (55% of 2013 revenue,
generated by the parent company and Docapost)
combines Mail solutions and services allowing
companies to enter into a contract, manage it (i.e. sales
administration and after-sales service), invoice and
pay, or manage disputes and litigation. These offerings
include, among others: delivery of relationship mail, data
security (1), electronic invoicing and electronic archiving
with probative value, consulting services on professional
data exchange processing.
Marketing communications (16% of 2013 revenue,
generated by the parent company and Mediapost
Communication) covers Mail offerings addressing the
marketing communications needs of companies. Mail
offers a full range of expertise for leveraging customer
knowledge to connect brands with their audiences
through any type of medium (web-based or traditional
channels) and in any point of sale (brick-and-mortar or
online). Various products and services are offered such
as gaining new customers, stimulating the portfolios of
existing customers, accelerating purchases or visits to
retail banners, delivering advertising mail (addressed)
and printed ads, geo-marketing targeting and measuring
campaign efficiency.
Local mail services (10% of 2013 revenue, generated
by the parent company and ViaPost) cover services such
as press preparation and shipping, paper collection
and recycling, and order preparation and parcel
transportation management (logistics of e-commerce).
Private communications (2) (12% of 2013 revenue,
generated by the parent company) represent mail sent
by private individuals (customised stamps, etc.) and
stamp-collecting.
Cross-border mail (7% of 2013 revenue, generated
by Asendia and the parent company for products
marketed in France). Mail meets both companies' and
private individuals' needs with a range of products and
services from business communications to marketing
communications and local mail services.
5.1.1.3.3 Mail market trends
Business communications market
Estimated at approximately €31.9 billion (3) in 2013 in
France, this market is made up of three large segments
with different dynamics:
outsourcing business processes for customer relations
or Business Process Outsourcing (BPO): estimated to
be worth approximately €1.3 billion, the growth of this
segment is driven by the development of new business
activities (e-commerce) and by companies focusing on
their core business;
electronic document management and call centres:
estimated to be worth €3.3 billion, this segment enjoys
moderate annual growth of 0% to 3%, driven by the
companies willing to transform fixed costs into variable
costs and to minimise capital expenditure in platforms
and industrial facilities;
communications channels (including mail postal
charges, telephone services, Internet): estimated to be
worth €27.3 billion, this segment has seen substantial
growth in volume, driven in particular by the level of
household uptake of new technologies, while seeing
a slowdown in value partly as a result of companies’
increasing use of low-cost communications channels.
Mail is a major player in business communications with
€6.1 billion in revenue in 2013, through its positioning
in postage (relationship mail) and in activities under
development of Docapost division subsidiaries, proposing
a wide range of services from production, management and
archiving documents and data in multiple channels (paper,
web or EDI) to outsourcing the entire customer process.
Marketing communications market
The marketing communications market in France was
estimated at €30 billion in 2013 (4).
This market contracted in 2013 by 3.2% (vs. -1.3% in 2012,
+1.9% in 2011, +3.4% in 2010 and -8.6% in 2009), reflecting
the impacts of the economic crisis and the streamlining of
communication expenses by advertisers.
(1) Generally through secure or specialised EDI platform exchanges.
(2) The scope of the private communications segment changed in 2011 in order to integrate return flows from companies to private individuals, formerly
recognised in the business communications segment.
(3) Internal analyses.
(4) Source: Irep-France Pub (September 2013) - 2013 Forecasts.
25Registration document 2013 / LE GROUPE LA POSTE
Overview of business activities Presentation of business activities 5
The offerings of the parent company (particularly advertising
mail) and of the Mediapost division, which is positioned on
the growing relational marketing segment, enabled Mail to
generate revenue of €1.8 billion, and to capture an average
6% share of the French advertising market in 2013.
In this market, Mail proposes, in particular, consultancy
services, customer knowledge, implementation of
campaigns and efficiency measurements. Through its
subsidiaries, Mediapost Communication is the leading
distributor of printed advertising material in France and
the leader in the customer knowledge and promotional
marketing market.
Local mail services market
The French market for local services was estimated at
€13.6 billion (1) in 2013, up 2.3% (compared with +4.7% in
2012). Growth in this market is driven by e-commerce,
the transformation of brick-and-mortar retailers to omni-
channel offerings that contributes to the development of
fine-tuned logistics for small goods, and the development
of "green business" activities (e.g. collection of end-of-
life products for recycling). In contrast, press delivery
operations in this market have been gradually contracting.
In the parcel and small merchandise distribution market,
Mail occupies a key position by ensuring the delivery of
three quarters of ColiPoste volumes (Parcels division of the
parent company), which is the leader in France.
In 2013, Mail posted €1.1 billion in revenue in the local mail
services market (including €0.7 billion from press handling
and shipping).
The subsidiaries of the ViaPost division are developing in
strong growth niches in this market: Neolog, Orium and
Morin Logistic in e-logistics (inventory management and
preparing orders for online sales companies) and Nouvelle
Attitude (Recy'go offer) in reverse logistics for paper.
Mail is the leading provider of e-retailer logistics services,
and has been gradually strengthening its positions in press
delivery and recycling services.
Private communications market
This market covers all of the communication flows made by
private individuals and stamp-collecting. In this segment,
the digitisation of flows and the development of new Internet
access technologies is significantly changing the behaviour
of private individuals.
In this context, Mail has an advantageous connection:
in everyday life: Mail is a major player in the everyday
lives of private individuals. In fact, the letterbox is
considered as an extension of the household, an
entryway allowing those involved to access the home
without disturbing intimacy;
in emotional relationships: a letter proves one's
attachment to a loved one or one's attention to an
acquaintance;
in leisure: stamp-collecting is the most popular
collection hobby, with its two million customers who
occasionally or regularly buy and preserve beautiful
stamps, or collectors.
To cover the needs of private individuals, Mail proposes
a broad range of products including the sale of stamps,
prepaid mail products, Lettre MAX and other small parcels.
In 2013, it generated €1.3 billion (2) in revenue from private
individuals with €356 million from stamp-collecting.
Cross-border mail market
This market, which is estimated to be worth €6.8 billion (3)
world-wide in 2012, is in steady decline:
Flows are concentrated in two regions, the United
States and Europe, while the top 10 exporting countries
generate over 70% of total volumes, including 40% for
the top four.
The remaining flows are mainly continental, and reflect
trading patterns: almost 80% of European cross-border
flows remain in Europe, while 40% of exports from the
US are destined for Canada.
Volumes in this market have remained steady, reflecting
mixed trends for different product segments: a gradual
substitution of business mail and communications from
private individuals by electronic solutions, offset by
strong growth in advertising mailings, and catalogues,
as well as in small goods weighing up to 2 kg, which is
linked to the growth of e-commerce.
(1) This activity includes BtoB express services, local collection and delivery (local courier services), as well as delivery solutions adapted to new requirements
of traditional retailers and e-retailers.
(2) Revenue including all sales channels (Retail Brand, Internet, GMS, tobacco retailers , etc.) for a relatively wide range of products (such as Lettre MAX,
prepaid letters, etc.) and with an average size of items often exceeding 20g.
(3) Sources: annual report of DP-DHL on world export flows; internal sources (2012).
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Overview of business activities Presentation of business activities5
Apart from single-piece mail (i.e. mail posted in street
letterboxes without prior sorting by the customer), which
is entirely operated by the exporting postal operator,
competition in this market is very strong. Four types of
players are present: postal operators who still apply a
traditional import and export model in their traditional
market, postal operators operating outside their domestic
market, consolidators and mail houses (e.g. Pitney, and IMX,
etc.) and integrators (e.g. UPS, and FedEx, etc.).
Customers’ main purchasing criteria is price, provided
reliable delivery can be demonstrated. The key success
factor for competing companies lies in their ability to
identify and negotiate the best terms for the transportation
and delivery of postal items.
With a revenue of €0.8 billion in 2013, Mail enjoys a strong
position on import flows (a protected sector up until the end
of 2010) and export flows (market share of around 90% in
value terms (1)) in France. In the case of international flows,
Mail operates via Asendia in the three main markets: the
US, the UK and Germany, and has sales teams in some 10
European and Asian countries. Bolstered by these trends,
Asendia has become the second-largest provider of postal
services outside its own borders, just behind DP-DHL.
(1) Sources: IPC market audit (2012).
5.1.1.3.4 Mail demand and usage trends
Analysis of domestic volumes for addressed mail processed by La Poste, by category of flow:
(traffic in millions of mail items)
2013 2012 2013/2012 change
amount %
Transactional mail 8.8 9.2 -0.4 -4.8%
Advertising mail 3.6 3.9 -0.3 -7.4%
Press 1.3 1.4 -0.1 -6.0%
All flows combined (excluding elections) 13.7 14.5 -0.8 -5.6%
In 2013, the decrease in distributed paying traffic continued
at a rate of -5.6%, and is explained by:
the continued historic-level decrease in flows from
private individuals;
the decrease in relational mail, which accelerated
slightly, as a result of economic conditions and the
continued switch to paperless formats, as well as a
reduction in outbound mail from companies;
the reduction of advertising mail, impacted by economic
conditions and by new communication practices by
distance sales corporations;
a decrease in press subscription volumes, which
accelerated compared with previous years.
Two major factors, one economy-driven and the other
structural, are contributing to the decline in mail volumes:
unfavourable economic conditions adversely affecting
postal activity that is by nature correlated with GDP.
In addition, banks are implementing savings plans by
reducing the main cost items, which includes mail. The
public sector is simplifying administrative processes in
order to reduce costs;
digital services. Distance sales abandoned "all paper" for
e-commerce via the multichannel. The press is affected
by a crisis in its paper readership and digital economic
model. The rapid digitisation of BtoB exchanges linked
to the simplification of processes, the growing popularity
among individuals of electronic exchanges represent
examples of transformations in exchanges and uses of
communication.
These two causes are contributing to a reduction in paper-
based mail. La Poste is expecting a 50% decrease in mail
volumes over the period between 2008 and 2020.
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5.1.1.4 Special regulatory issues and business model
5.1.1.4.1 Special regulatory issues
Mail is responsible for carrying out two of La Poste’s four
public service missions: the Universal Postal Service (see
Section 5.3.2.1) and press transportation and delivery (see
Section 5.3.2.3).
The environment in which Mail operates is subject to a high
level of regulation and oversight. The Universal Service
mission assigned to Le Groupe La Poste by the French
government is overseen by Arcep (Autorité de régulation
des communications électroniques et des postes—French
regulator of the electronic communications and postal
sectors), which provides price regulation and in particular
checks the quality of service, monitoring compliance with
respect to the targets set by the Minister.
Universal Service accounted for approximately 75% of the
parent company Mail division’s revenue in 2013, stable
compared with 2012
Quality of service is governed by a specific legal provision
published in a decree issued by the Minister responsible
for postal services (1), which sets out the Universal Service
quality of service targets. On certain product ranges, quality
of service is governed by contractual commitments that may
result in La Poste paying compensation in the event that
it fails to meet these commitments. For cross-border or
international mail, the distributor's remuneration is directly
linked to service quality. An independent body (Ifop in 2013)
assesses the quality of service.
The quality of service for Mail’s main products has
significantly and regularly improved over the last few years.
In 2013, quality of service for Priority Mail reached a high
level of 87.4% for next-day delivery. For "Green Mail", quality
of service reached 92.8% for two day delivery, while quality
of service for Registered Mail reached 95.2% for two day
delivery with a very high level of quality of service for next-
day delivery.
5.1.1.4.2 Business model
Parent company
Revenue model
The Mail parent company's revenue covers postal charges
of letter post and services provided including collection,
special deliveries and mail box management.
Postal charges account for the bulk of revenue. Although
there are various ranges with different postage rates, overall
volumes, aside from rate changes, are the main driver
of revenue trends. Rates are governed by multi-annual
rate caps (see Section 5.3.2.1.2—Regulatory framework).
Changes in the product mix (i.e. volume changes of
differently priced products) affect revenue to a lesser extent.
Cost structure
Despite the increase in automated processing, the parent
company’s business is still highly labour-intensive.
Most of its costs are significant fixed costs, largely arising
from its Universal Service obligations and the quality of
service targets for next day delivery:
the service quality targets for priority deliveries require
sorting platforms close to the delivery areas. The number
of such platforms results in high fixed costs (real estate
and overhead costs);
the obligation to make daily mail deliveries to all
letterboxes six days out of seven means that it is
necessary to make regular rounds and requires
significant fixed travel time;
the obligation to have a dense network of public outlets,
which ensures access to the Univeral Service (2), also
results in high fixed costs (e.g. real estate and staff).
(1) Service quality refers to the European standard EN 13850 that defines a methodology for "end-to-end" service where quality represents the shipping
time for a postal item expressed as a percentage of distributed mail in days (d + n with "d" representing the mail drop-off date and "n" the number of
days adopted for the service standard).
(2) The criteria for access to Universal Service in France specify that at least 99% of the French population, and at least 95% of the population in each
Department must live less than 10 km from a public outlet, and that all districts of over 10,000 inhabitants must have at least one public outlet for each
tranche of 20,000 inhabitants; it must be possible to perform essential mail transactions at these outlets.
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The cost structure points to the limits of the parent
company’s business model. Given the importance of fixed
costs, and the moderate nature of price increases compared
with other postal operators, the parent company’s business
model is heavily dependent on volume trends.
Furthermore, the parent company’s business activities are
not very capital-intensive, as fixed assets accounted for 6%
of revenue in 2013 (7% in 2011 and 2012).
Subsidiaries
The business models of Mail subsidiaries are specific in
some ways:
The unaddressed admail business model Mediapost is
similar to that of addressed letters, with revenue highly
dependent on volumes and payroll representing a high
proportion of costs.
The desktop publishing/routing activities/Business
Process Outsourcing (Docapost) business activities are
rather capital intensive with an elevated share of labour
costs.
The press home delivery model is primarily dependent
on delivery and on an ability to maximise volumes in a
given delivery area.
The business model for cross-border operations
(Asendia) has a high proportion of variable costs, (i.e.
purchase of transport and delivery services), and is
highly dependent on an ability to negotiate the best
possible transport and delivery prices with other postal
operators.
5.1.1.5 Strategy and outlook
In response to declining volumes in its core market, which
are primarily due to the development of the Internet and
electronic exchanges, as well as the complete end of the
postal service monopoly on 1 January 2011, Mail continues
to face major challenges.
Mail is introducing innovations for all its customer
segments, including corporate and retail customers, and
senders and recipients, in order to strengthen its position
as the premium customer relationship medium.
For individual customers, Mail facilitates the sending
and reception of mail in all forms: services accessible
24/7, customised services, simplified drop-off, diverse
reception options, an offering with reinforced security
features, etc.
For professionals, above its services of shipping and
delivery, Mail is positioned as a growth driver for the
company: a global provider of document management,
mail and direct marketing services. The integration of its
subsidiaries' expertise forms the basis for a complete
offering. Mail offers companies a range of business
solutions to promote their development, in the role of
a trusted third-party on the Internet, by transforming
the exponential growth in digital exchanges into an
opportunity for developing revenue both for the company
and its customers.
Mail is transforming itself in order to offer all customers the
best of two worlds: the world of paper and the digital world.
5.1.1.5.1 Major recent trends for Mail
Innovations and enhancements of the range
Mail is developing and improving its service offering to
meet the new needs of its customers, facilitating and
simplifying micro-business and SME access to mail media
and supporting all customers by rolling out new uses:
Green Mail was created at the end of 2011, in order to
provide a less expensive and more environmentally-
friendly solution (it emits 15% less CO2 than Priority
Mail). This initiative has met with great success: over
1.4 billion letters were delivered in 2013, while one letter
in every three sold in the fast mail range was a Green
Letter.
In May 2013, La Poste's connected mail range was
enriched by the addition of Webkey. This range already
includes the integration of 2D codes in advertising mail,
redirecting the reader equipped with a smartphone to
online mobile content. The connected mail Webkey is
in the form of a USB flash drive device facilitating the
connection between a physical document and a website.
Webkey is designed to optimise the interactivity and
performances of companies’ marketing campaigns (1) by
automatically loading a URL web address.
(1) The survey conducted on La Poste customer feedback and the study performed by the H2O Research Institute based on 600 respondents demonstrated
a 10-point improvement in the recall rate for Webkey mail in the case of bank customers, with an increased reading rate: seven people out of every 10
who opened the letter read it.
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Overview of business activities Presentation of business activities 5
Win’up is a powerful and innovative new marketing tool,
which involves affixing an advertising label to mail, and
enables the promotion of an offering tailored to the
target recipients. It is also possible for the issuer of a
mail to make this space available to a partner. Win’up
represents an effective means for boosting the impact
of campaigns: when mail is received, this captures
the attention of target customers as soon as they see
the envelope, which becomes in this manner a new
communications media.
New more flexible services are offered, in order to
meet retail customers, expectations, including via the
introduction of a repeat delivery, as part of the "Reception
choice, successful delivery: 100% of customer
satisfaction" programme. Customers can choose, via
the Internet, the reception method for items where the
delivery requires a signature, including registered letters,
which are on hold at the post office due to their being
absent at the first delivery attempt.
Building a network of connected postmen: Facteo
Mail is equipping postmen with smartphones: this
investment is a strong sign of the evolving profession
of postman, its modernity and capacity to respond to
new customer expectations in terms of local service
and relations of trust. At the end of 2013, more than
10,000 postmen were equipped with Facteo. This tool is
intended to support the evolution of the profession notably
by enhancing the Facteurs Services Plus local service
range. Facteo already allows certain local postmen to
transmit information to local authorities after visits, notably
of isolated persons and seniors, to ensure their well-being,
regardless of whether they have mail to be delivered or not.
In time, this device will offer 15 to 20 services.
Developing new growth drivers, notably through acquisitions
A number of acquisitions in recent years have contributed
to developing and enhancing Mail's offering in the following
areas:
relational marketing, notably through a number of
acquisitions (1) by Mediapost in 2012 (BudgetBox,
MixCommerce, Adverline, Vertical Mail and Cabestan)
and the launch of Mediapost Local (2) and Cabestan in
Portugal. These transactions strengthened Mediapost
Communication's positioning by integrating new
expertise and complementary capabilities. In 2013,
to facilitate the integration of this new expertise, the
deployment of synergies and the legibility of the offering,
Mediapost Communication was reorganised around eight
business units: Consulting and Customer Knowledge
(Mediaprism), Local Communications (Mediapost),
E-commerce (MixCommerce), Home Media Sales
(Mediapost publicité), Internet (Adverline), Promotion
(Sogec, BudgetBox), CRM (Sogec Datamark Service,
Vertical Mail, Cabestan, as well as the advertising
campaign management expertise of Mediapost) and an
international business unit (Mediapost Spain, Portugal
and Romania). This new organization will facilitate the
development of market positions and the rapid rollout
of new offerings.
e-logistics, via the acquisitions of of Orium (1) (which
specialises in cross-channel logistics solutions and
customer relations for e-commerce companies) and of
Morin Logistic (a major provider of e-commerce logistics
services in France) in 2012. These acquisitions have
enabled Mail to become the leading provider of logistics
services for e-retailers in France (3).
These operations completed the Group's know-how and
brought adapted responses to players' development
needs in France and Europe, from companies operating
exclusively on the Internet to marketplaces wanting to
outsource all or part of their volume in order to deal with
their growth. ViaPost also brings an adapted response to
players in traditional commerce with order preparation
solutions for physical points of sale and for Internet
customer orders, in a multi-channel rationale.
the collection of office paper for recycling: following the
acquisition of Nouvelle Attitude (4) at the end of 2011, Mail
launched Recy’go, an offering involving the collection
of used office papers in order to recycle them aimed at
small to medium-sized businesses. Several local SMEs
and municipalities subscribed for this new offer, which
was deployed simultaneously in La Poste's facilities.
Recy’go has now been rolled out across France and
has already achieved convincing results, including over
2,000 corporate and regional authority customers, and the
collection of 8,000 tonnes of paper at 31 December 2013.
As part of this new business activity, La Poste also signed
an agreement with the French group of paper recyclers
(Revipap) to ensure to the French paper industry
that all of the tonnage collected will be delivered to
manufacturers located in France.
(1) Refer to Note 4 of the consolidated financial statements, Chapter 20, Section 20.1.
(3) External sources (Xerfi Logistics and e-commerce report, August 2012, Stratégies Logistiques magazine) and internal sources.
(4) Operating subsidiary for the Recy’go offering.
(2) Division specially dedicated to the coordination of local communication activities to promote prospecting consulting, loyalty-building, campaign
management, customer knowledge and database management solutions to micro-businesses and SMEs.
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management processes and e-services: the French
National Order of Pharmacists (Conseil national de
l’Ordre des pharmaciens—CNOP) selected Docapost to
manage and develop the Pharmaceutical File (dossier
pharmaceutique—DP), a professional tool for serving
patients and the first e-health service in France. The
electronic pharmaceutical file records for each patient
who so wishes all medications provided to them by
pharmacists within the last four months. Pharmacists
are given a comprehensive view of patient treatments,
which in turn enables them to enhance the performance
of their role. 22,000 pharmacies and several thousand
healthcare professionals (hospital personnel and
pharmacists) are able to access to the historical record
for the distribution of medications. Today, more than
28 million people in France have a Pharmaceutical File.
cross-border mail: in May 2013, Asendia announced the
acquisition of Pitney Bowes' international mail business
activities in the United Kingdom, thus strengthening its
positions in this key market and developing its growth
potential by opening up new commercial opportunities,
and notably in markets for e-commerce and distance
selling, direct marketing, press and catalogues. In
addition, in September 2013, Asendia strengthened
its presence in the cross-border e-commerce market
through:
- a strategic investment in eShopWorld, a company
based in Dublin and in the United States, which
has developed a set of software solutions that help
simplify cross-border transactions for small goods;
- the launch of three new e-commerce products with
tracking options that will provide more secure cross-
border delivery solutions to its customers for small
parcels.
5.1.1.5.2 Mail’s strategy
Mail has enriched its vision and renewed its strategic
project by taking into account both market developments
and its positioning. On 1 July 2013, Mail launched a new
strategic plan ("2018: Let’s Reinvent Mail"), which included
a new portfolio of programmes and focused on two key
areas: Mail's renewing its positioning, in order to remain
the premium medium for customer relations, which are now
global and multi-channel, and to become the leading local
services network.
It also intends to remain a key operator in its original field
of operations, to which it has a legitimate claim, and take
advantage of growth in segments. The challenge involves
adjusting to changes in companies’ communications
and relational strategies, which are now based on
multi-channel (letter boxes, Internet and mobile) and
multi-platform (paper, digital, and hybrid) offerings, in
order to achieve an ongoing relationship, which creates
more loyalty between the brand and the customer. These
strategies combine promotional marketing, relational
marketing and contractual management through a
combination of formats. Accordingly, Mail is continually
supplementing its range through the introduction of
new commercial growth and innovation drivers, both
at the parent company and the Sofipost subsidiaries.
Marketing, communication and business communication
will therefore continue to generate the major portion of
its revenue.
Expanding into new areas of development to provide
growth drivers for the future. Three areas of development
have been identified:
- Services for e-retailers and local merchants: the
digitalisation of the customer experience and
the development of online sales will result in the
convergence of different forms of commerce with
similar expectations in terms of services for logistics
and distribution, solutions for attracting incoming
business, generating traffic and managing local
inventories.
- New logistics services—local logistics (1), urban
logistics (2), reverse logistics, and the circular and
responsible economy (3)—are changing rapidly, and
are providing growth opportunities for La Poste. To
capture this growth, processes and organizations,
and even functions, need to make in-depth changes,
notably in the area of distribution, in order to propose
responsive, reliable, smooth and cost competitive
services.
(1) Deliveries of flows generated close to the consumers: shortening store delivery periods (to approach instantaneousness, etc.), simplified return procedures
for packages from home, etc.
(2) Urban logistics: solutions for shipping goods to merchants under optimal conditions, (incoming, outgoing and intracity).
(3) Recycling products (office paper, cartridges, etc.), repairs, etc.
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Overview of business activities Presentation of business activities 5
- The new services provided by the postman, including
local services, which are closely linked to the
challenges posed by an aging population and the
financial equilibrium of social security schemes: Mail
is seeking to leverage the trust the French population
has in its postmen (1), and in its very dense regional
network, in order to develop projects for home-based
services that postmen would be capable of providing
in addition to mail delivery.
In these three areas, La Poste has assets (the network
of postmen, the logistics network and the commercial
networks), expertise and recognised legitimacy.
Mail intends to leverage this potential notably through the
ability of postmen to intervene on a day-to-day basis, so
that its services meet the requirements for responsiveness,
reliability, fluidity, competitiveness, and enable it to build
sustainable leadership positions for activities under
development.
Mail is conducting this policy while continually monitoring
its balanced progress in each of its three strategic priorities,
namely commercial development, Quality of life at work, and
financial performance.
(1) TNS Sofres survey of October 2012 : 92% of French people indicate that they trust their postman. The postman is the second most preferred figure in the
day-to-day life of the French (ahead of the baker but before the fireman).
5.1.2 Parcels-Express
5.1.2.1 General points and key figures
2013 2012 2013/2012 change
(€ million) amount %
Revenue 5,988 5,580 +408 +7.3%
External revenue 5,947 5,538 +410 +7.4%
Intercompany revenue 41 42 -1 -2.8%
Operating profit 419 403 +17 +4.1%
Backed by a long-standing presence in the postal parcel
market, La Poste was the first European postal operator to
enter the express market, as early as 1984.
In France, the Group operates in this sector via ColiPoste, its
parent company's Parcels division, and through GeoPost’s
Exapaq, Chronopost and Pickup subsidiaries in the express
and pick-up point markets. It also operates in international
markets through GeoPost, its wholly-owned subsidiary
that includes in turn all the express service subsidiaries in
Europe and worldwide.
Parcels-Express accounted for 26.9% of Group revenues in
2013. The Business Line handles over 1 billion parcels every
year, and ranks among the four largest operators world-
wide in volume terms.
5.1.2.2 Structure
Parcels-Express is organised into two complementary
operating divisions: ColiPoste and GeoPost.
5.1.2.2.1 ColiPoste
ColiPoste specialises in delivering parcels weighing less
than 30 kg within 48 hours to private individuals ("toC", i.e.
in both the BtoC and CtoC segments) in France, with home
delivery services six days a week.
As La Poste's Parcels division, ColiPoste operates
exclusively in France, and delivered over 277 million parcels
in 2013, compared with 271 million in 2012. This represents
over 1 million parcels per business day. ColiPoste generated
revenue of €1.6 billion in 2013.
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As a historic operator in the distance sales market and a
key partner for online retailers, ColiPoste’s know-how and
delivery process knowledge, especially in the "last mile" of
the home delivery process, make it the leader in the French
market, with a market share of approximately 65% in the
business (1) and private individual (BtoC and CtoC) delivery
segments.
5.1.2.2.2 GeoPost
GeoPost operates according to a combined model: it is
primarily positioned on the BtoB express market, and
its core business is parcels weighing less than 31.5 kg.
GeoPost is also expanding in the BtoC segment, which is
experiencing rapid growth.
GeoPost owns all Le Group La Poste’s French and foreign
subsidiaries operating in the express business. As a holding
company founded in 1999, its scope of operations was built
mainly through acquisitions.
GeoPost generated revenue of €4.5 billion in 2013; 26% of
its revenue is generated in France and 74% outside France.
International (incoming or outgoing) parcels account for
roughly 20% of GeoPost’s revenue. GeoPost delivered
814 million parcels in 2013, an increase of 12% compared
with 2012.
GeoPost's structure in France
GeoPost operates in the French market via three
subsidiaries with complementary business activities:
Chronopost International, focused on premium express
services, the French specialist for express delivery for
parcels up to 30 kg in both the BtoB and BtoC segments.
Chronopost is the only express service provider offering
coverage throughout metropolitan France for next day
home delivery before 1:00 p.m. Chronopost delivered
102 million parcels in 2013. International express delivery
accounted for 25% of its revenue. The share of BtoC
deliveries represented 33% of its flows. It includes the
Chrono Relais service. Chronopost employs 3,500 people.
Exapaq, focused on express service. Exapaq was founded
by 19 independent French freight and express delivery
companies in 1995 and was acquired by GeoPost in 2006;
the company delivers parcels weighing less than 30 kg,
primarily to the BtoB segment.
Exapaq delivered 55 million parcels on behalf of over
100,000 business and private individuals in 2013, and
employs 1,800 people.
Pickup, expert in PickUp and DropOff delivery (see
Section 5.1.2.2.3).
GeoPost's worldwide organization
Le Groupe La Poste operates in the express parcel segment
outside France via GeoPost and its subsidiaries, which are
usually major players in their respective domestic markets.
GeoPost has strong brands in Europe, including DPD,
GeoPost’s international brand, Chronopost International
and Exapaq in France, as well as SEUR in Spain, and a
highly consistent network, which relies on DPD's road
transport network; GeoPost is DPD's majority shareholder.
Depending on the countries, GeoPost operates:
on its own account via subsidiaries, in France, Germany,
the United Kingdom, Belgium, Spain, Portugal,
Luxembourg, the Netherlands, Switzerland, Poland,
Hungary, the Baltic Countries, the Czech Republic,
Slovakia, Romania, Croatia and Slovenia;
via commercial partnerships: GeoPost has entered into
commercial partnerships with leading operators such as
Bartolini in Italy and Posten in Sweden;
via equity and industrial partnerships: GeoPost operates
on the Turkish market via its interest in Yurtiçi Kargo,
with which it is also expanding—under the DPD brand—
in Ukraine, Kazakhstan, Belarus and Russia, where it
has substantial operations.
Outside Europe, GeoPost has expanded its operations
on fast-growing markets through partnerships, via a
continuous continental block approach:
in Asia, in the People’s Republic of China and India;
in Africa: Niger, Morocco, the Ivory Coast, Burkina Faso,
and South Africa;
on the American continent, in the United States via IBC.
Lastly, where international import and export flows are
concerned, GeoPost benefits from the freight forwarding
activities of its Tigers subsidiary, which is an international
freight forwarder that operates in Asia (China), in the United
States, Europe and Australia. GeoPost invested in Tigers in
2011, and acquired control of the company, in which it now
directly holds a 66% share capital, in 2013. This transaction
has enabled GeoPost to broaden its scope of activities, to
develop synergies at commercial and operational levels, and
to offer an alternative to the service provided by integrators.
(1) Internal sources.
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5.1.2.2.3 The GeoPost network
Logistics network
GeoPost operates in over 40 countries throughout the
world, including 26 countries in the European Union. It
serves over 230 countries worldwide on behalf of over
300,000 customers, thanks to its 22,000 employees, over
14,000 of which are outside France.
The GeoPost network is composed of:
the domestic networks owned by each entity;
the DPD pan-European road network, which is GeoPost’s
international shipping and delivery road network. It is the
most extensive road network in Europe, and covers the
most important business regions worldwide;
an air express network for Chronopost, primarily
operated under an agreement with an integrator (a
global shipping company controlling the whole shipping
chain);
the inter-continental GeoPost network, which relies on
the Air France SA air network, primarily via Sodexi (a
subsidiary in which Air France SA and GeoPost have
respective interests of 65% and 35%), in order to connect
Europe to the other continents where GeoPost operates.
Overall, the GeoPost network includes 830 warehouses and
60 hubs, which are connected via 500 daily international
road links between 35 European countries.
The decentralised structure at local level ensures the
efficiency of the network, which is constantly adapting
to national and international volumes. The density of the
network makes it possible to handle deferred parcels as
well as express parcels and to offer tailored solutions to
its customers.
A parcel PickUp and DropOff network
Pickup is Le Groupe La Poste's PickUp and DropOff
network. The network was set up in 2000, and was acquired
by GeoPost in 2009. Pickup is now France's leading network
with 7,000 PickUp and DropOff at the end of 2013. The
density of this network, which is the largest in France, and
the densest in the Greater Paris region, enables GeoPost to
support the substantial increase in the number of parcels
handled each day, while continuing to provide a top-quality
service.
GeoPost applied the Pickup model to the new PickUp and
DropOff networks in Germany and the Benelux countries in
2013, by relying on its knowledge and experience in France.
The model covers hiring, training, management and
oversight at the PickUp and DropOff and the network
management tools, as well as its IT system. It incorporates
retailers' constraints, as well as solutions that are
appropriate for shippers' requirements (the widest range
of PickUp and DropOff services on the French market).
Pickup aims to satisfy private individuals thanks to a highly
selective hiring process for PickUp and DropOff and an
exclusive service quality level.
GeoPost wants to develop a unique model in Europe, in
order to offer shippers a single and consistent of PickUp
and DropOff network that has the same service quality
requirements, the same processes, and the same IT system.
The company is aiming to set up the largest PickUp and
DropOff network in Europe.
5.1.2.2.4 The ColiPoste network
The ColiPoste organization makes use of both its own
resources combined with support of other La Poste
Business Lines, particularly the La Poste's retail outlets
and the Mail division's postmen. ColiPoste’s own headcount
includes around 5,500 employees, who are divided between
five Regional Departments, and the Head Office in the Paris
area.
To deliver around 280 million parcels to private individuals
every year, ColiPoste has built a unique industrial facility in
France, which enables it to process very substantial parcel
volumes and to dispatch them to the various distribution
facilities used by La Poste, in order to cover the whole
of France. These volumes are highly seasonal in nature.
Indeed, in December, ColiPoste’s business increases 50%:
during these peak periods, ColiPoste supplements its
industrial base with sub-contractors.
The ColiPoste network is built around two divisions:
"Sorting and Shipping"; and
"Delivery".
The processing and shipping of parcels for the domestic
market are managed through 14 parcel platforms located
throughout France, which guarantee the network's
coverage. Every day these platforms receive parcels from
corporate customers and parcels collected by the post
offices, which are sorted on the basis of the address of the
recipient. Once sorted, parcels are loaded into trailers that
leave the same night.
The ColiPoste road network is organised as an interlinking
group of national and regional links servicing daily all the
Parcels platforms, the Mail distribution centres, the Parcels
offices and the public outlets.
In order to handle import and export parcels, ColiPoste
has an international office of exchange dedicated to
international parcels, in Chilly-Mazarin. In addition, trade
offices have been established at the platforms closest to
the borders.
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In terms of delivery, ColiPoste has a network of 65 centres
devoted to parcels, delivering mainly in high density urban
areas (cities with more than 150,000 inhabitants). The urban
delivery areas require a specific organization in order to
handle high traffic volume, the density of delivery points,
difficulties of parking near buildings, frequent absence
of recipients, etc. In rural areas the postmen responsible
for delivering letters ensure the distribution of parcels to
residential addresses. Parcels delivered by postmen now
account for close to 70% of ColiPoste’s overall business.
ColiPoste also makes use of La Poste's network of
17,000 public outlets for the pick-up of parcels by private
individuals following being on hold at the post office. To
meet the pace of demand in large metropolitan areas and
expectations of urban customers with reduced availability
who want to be able to pick up their parcels whenever they
have the time or desire, since 2006 ColiPoste has offered
a service allowing pick-up from special locker facilities
accessible 24/7 and local convenience stores.
International parcel delivery services, mainly in Europe,
are assured by other postal operators under historic
agreements of the Universal Postal Union or special
agreements with certain postal operators or by private
operators, including GeoPost subsidiaries for certain
countries.
5.1.2.3 Markets and business activities
5.1.2.3.1 Parcels-Express' key markets
The European market is estimated at €42.8 billion (1) for all
parcel categories combined, and at €32.8 billion excluding
postal parcels. It has increased by 5.7% (2) in value terms
compared with 2011.
The market remains highly concentrated: Germany, the
United Kingdom and France account for over 53% of the
European express parcel market. Including Spain and Italy,
these five countries account for 70% of the market.
The express parcel market is traditionally segmented
according to several criteria.
A first segmentation criterion is the delivery time, which
subdivides the market into three segments:
- traditional parcel deliveries (24 to 72-hour delivery);
- deferred delivery service (pick-up before 6 pm for
delivery, in principle, the next day before 6 pm, in the
national territory, time lines not being guaranteed);
- express delivery service (pick-up before 6 pm for
delivery the next day before noon or 1 pm, in the
national territory subject to levels of guarantees).
The deferred parcel delivery and express messaging
service segments are the segments usually referred to
under the generic "express" category.
Le Groupe La Poste operates in the traditional delivery
service segment of the market through its ColiPoste
division and in the deferred and express delivery service
segments through its GeoPost subsidiaries.
A second criterion for market segmentation is the nature
of the sender and recipient, breaking down the market
according to the nature of the parcel flow:
- from professional to professional (BtoC);
- from professional to private individual (BtoB);
- from private individuals to private individuals (CtoC);
- from private individuals to professionals (CtoB).
Le Groupe La Poste covers all i ts customers'
requirements and every kind of flow thanks to ColiPoste,
(a "toC" specialist, i.e. BtoC and CtoC), and GeoPost
(which specializes in BtoB and has a substantial share
of the "toC" market) and its subsidiaries.
Lastly, markets may also be defined by geographic
criteria. On that basis, the geographical segmentation
makes a distinction between:
- domestic markets; and
- an international market, sub-divided between
shipments within the European Union and shipments
outside the European Union.
Le Groupe La Poste has a combined network (BtoB and
BtoC). It specializes in the domestic and intra-Europe
parcels-express road delivery market, and is expanding
at the global level.
Thanks to GeoPost and ColiPoste, Le Groupe La Poste
is the second largest European operator in the market
after Deutsche Post DHL, with a 10.1% market share in
2012 (3). GeoPost is the market leader in the domestic
European road transport market with an 11.2% market
share, ahead of Deutsche Post DHL. Furthermore, it
ranks among the four largest operators worldwide, with
over 1 billion parcels per year.
(1) Internal sources produced in 2013 for 2012.
(2) Internal source from a report using 2012 data published in 2013. As the research methodology incorporated marginal changes in the geographical scope,
the 2012 data is not directly comparable with the data provided for 2011.
(3) Internal sources.
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Supply and demand dynamics
E-commerce demand from individual customers
continually growing
BtoB continues to account for the major share with 70% in
relation to BtoC. In effect, in the European market valued at
€42.8 billion (1) for all parcels combined, "toB" accounts for
€28.7 billion compared with €14.1 billion for "toC".
However, the BtoC share, which is supported by the growth
in e-commerce volumes, is increasing both at the domestic
and international level, and is recording much higher growth
rates, from which the Group benefits via ColiPoste in France
and via GeoPost in Europe, thanks to its combined network.
Unbundling and Internet: optimised customer structure
The trend witnessed over the last three years has been
continuing. Seeking out increased productivity across
all economic sectors has resulted in the optimisation of
logistics chains and inventories at all production stages.
Of particular note is the progressive decline in the role of
middlemen (wholesalers) accompanied by a phenomenon
of unbundling: transport of goods in large quantities by
container or pallets has been replaced by the shipping of
small quantities by parcels, with direct delivery to end-
customers.
This trend is gaining momentum with the opening up of the
borders (Schengen agreements) resulting in the elimination
of inter-European customs documents and the continuing
development of e-commerce, with goods sold online
shipped in the form of parcels delivered to end-customers
(and no longer in shops or warehouses).
Convergence of BtoB and of BtoC
A decade ago, two markets existed side by side, each
completely foreign to the other. First there was BtoB,
primarily express deliveries, which was characterized
by high delivery speeds, tracking at each stage of the
transport, and highly developed after sales services; and
then there was the retail parcel service, with a lower level
of service, a lack of tracking, and a service quality that was
below BtoB standards.
This situation has seen a profound change. Customers
are looking for more services, and the development of
the Internet has led to heightened demands from new
customers. This is resulting in a profound transformation
of BtoC worldwide, and in particular in Europe, the US and
Japan.
Nowadays, the characteristics of “toC” products are
relatively similar to those of “toB” products. Information
tracking is pretty much complete, and the after-sales
service highly sophisticated. Furthermore, a growing
number of shippers, who were customers specialised in
“toB”, are now becoming “toB” and “toC” customers. For
example, most clothing chains are key "toB" customers for
GeoPost by definition since they continually restock stores
via express and have opened Internet sites accessible to
private individuals.
It should be noted that this convergence of service levels
with demands from shippers does not involve the transport
and delivery infrastructures of BtoB and BtoC merging. This
is in particular due to the specific features of the final mile,
i.e. delivery to the end customer. The specific features of
“toC” compared to “toB” deliveries are:
a single parcel per delivery;
greater or less success in reaching a private individual
at home, as addressees are often absent;
the need to set up solutions to arrange other delivery
attempts and leave delivery slips.
The development of parcel PickUp and DropOff networks
to support the development of e-commerce
The challenge posed by delivering to private individuals
with pressure regarding costs and the necessity to always
bring the addressee/customer more flexibility and choice in
delivery methods, has made parcel PickUp and DropOff a
vital addition to home delivery and post offices.
This system, which was developed by mail order companies
for their own purposes, has become a distribution channel
in its own right and is experiencing growing success as
a result of certain benefits associated with out-of-home
delivery (e.g. longer opening hours of convenience stores
and competitive prices).
(1) Internal sources produced in 2012 for 2011.
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Le Groupe La Poste is positioned in this complementary
niche through:
Pickup Services, a GeoPost subsidiary, a PickUp and
DropOff network that has significant growth potential,
due to a booming market, increased customer
confidence, and substantial synergies with Le Groupe
La Poste's transport partners, i.e. Chronopost, ColiPoste,
Exapaq and DPD. The PickUp and DropOff network in
France expanded significantly in 2013, with parcel traffic
up between 80 and 100% compared with 2012, and
new e-commerce players, who wanted to enable their
customers to benefit from this service;
the option provided by ColiPoste to offer up to five
delivery methods including parcels available in post
offices, in its 35 "Cityssimo" areas and in the Pickup
network;
consigned delivery: in January 2014, GeoPost signed an
agreement with Neopost ID, a subsidiary of Neopost, the
European leader in the mailroom equipment market, and
a major player in the logistics solutions market. This
agreement involves setting up and operating automatic
and secure consigned delivery networks intended for
delivering and returning parcels in France. An initial roll-
out of 1,500 consignment points has been scheduled up
to 2016, followed by the installation of 3,000 consignment
points over the longer term. The agreement provides for
setting up a joint venture, Packcity France, which will
be jointly owned by GeoPost and Neopost, while the
consignment points will be operated under the Packcity
brand, and 1,000 points will be exclusively dedicated to
GeoPost.
Through these PickUp and DropOff network delivery
options, Le Groupe La Poste provides an efficient means
for completing its different delivery offerings available to
e-retailers and end-customers.
Profile of the express market—GeoPost
Multi-faceted competition on the express market
The market is largely structured around shipping (air
or road) and customer (corporate or private individual)
characteristics, and there are three major types of
operators:
Global players—also called integrators. These are
shippers who control the whole shipping chain. They
manage a whole series of activities: airline company,
customs broker, cargo agent and often road carrier. The
four major players in this market (DHL, TNT, FedEx and
UPS) enjoy 80% (1) of the global market;
European players, including GeoPost, that are mainly
road operators;
Local players, including some national postal operators
(operating in domestic BtoC markets), and certain regional
transport SMEs that offer some BtoB express services.
Domestic demand is continuing to switch from air
transport to road transport and from express to deferred
delivery
In addition to the trends mentioned above, and in particular
the development of BtoC traffic with operators historically
positioned in BtoB, the market has experienced a transfer
of air express traffic to more economic shipping methods,
namely by road.
The crisis has led to greater price sensitivity. As a result,
corporate customers have changed their orders from
premium express to deferred express, which is cheaper but
without the guarantees provided by premium express. Since
GeoPost's subsidiaries are very active in the products and
services in this segment, they benefit from these customer
shifts.
Market prices have been influenced by the economic
and competitive environment
The express and deferred parcel transport business is
facing a certain level of pricing pressure both in the BtoB
and BtoC segments.
Three factors are contributing to pricing pressure, namely
an increase in the capacity of parcel operators who have
followed the market's capacity, customers' high level
of negotiation power due to the concentration of the
e-commerce market on a handful of operators, and the
costs relating to delivering to private individuals, which are
higher than for companies.
The continued roll-out and expansion of the offering
and the optimization of capital expenditures and means
of production enable GeoPost and ColiPoste to provide
a commercial and industrial solution, and to continue
expanding their business and results.
Profile of the traditional parcels market—ColiPoste
In France, parcels grew thanks to distance sales in the
1980s, followed by a long period of stagnation before being
reinvigorated with the appearance of e-commerce. This
market has been growing at an average rate of 4% per year
for the last three years.
(1) Internal sources, for 2011.
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This market has undergone substantial change over the
past number of years. Service standards have moved
closer to those offered by express in terms of speed and
tracking. Customer profiles have changed, with the decline
in volumes of some major traditional customers such as
mail order firms benefiting e-retailers, demanding in terms
of quality of service, which has profoundly altered the nature
of the market.
The major market trends with respect to postal parcels
sent to private individuals continue to be impacted by the
ongoing explosion in e-commerce, the decline in traditional
distance sales which is progressively moving online and
more demanding customers (more tracking, more services
and better reliability).
Online commerce as a market driver
Driven by almost universal high-speed Internet in the
home, e-commerce has reached the whole population of
France, regardless of social and professional status or
age. European e-commerce, including goods and services,
increased by 19% to €311.6 billion in 2012 (1).
This phenomenon has completely changed consumption
patterns, in terms of the structure of the offering, the
structure of the online presentation and the various
delivery options. For Le Groupe La Poste, this development
represents a highly promising underlying trend. Distance
sales continued to expand in 2013, against a backdrop of
falling household retail consumption (-2%). The distance
sales market share now accounts for 7% (2) of household
expenditure (excluding food), which still allows for
significant growth potential for the future. The growth in
this market results from a combination of two factors: the
switching of mail-order sales to online sales, and websites
gaining market share from bricks-and-mortar retailers.
The result is a moderate growth rate for distance sales at
around 3% (net impact of the growth in e-commerce and
the contraction in mail-order).
The number of active merchant sites has grown from less
than 50,000 at the end of 2008 to more than 120,000 in
June 2013 (1). In 2013, growth in distance sales experienced
accelerating momentum in response to the intensification
of purchases. Accordingly, the percentage of households
receiving parcels increased to 87% (3) with the average
number of parcels received per household now reaching
15.5 (2) per year.
There were 3,000 e-retail websites offering the So Colissimo
service in 2013, compared with 2,000 websites in 2012.
New forms of competition
Competition mainly stems from another delivery method:
PickUp and DropOff. This system, which was developed by
mail order companies for their own purposes, has become
a distribution channel in its own right and is experiencing
growing success as a result of certain benefits associated
with out-of-home delivery (e.g. longer opening hours of
convenience stores and competitive prices).
In addition to the emergence of PickUp and DropOff, it is
worth noting the development of e-commerce platforms or
providers of e-retail websites to distance-sellers, who may
increasingly act as middlemen between ColiPoste and its
customers, both in the private individual and professional
sectors (Price Minister, and Oxatys, etc.).
5.1.2.3.2 Business Activities
GeoPost's business activities
GeoPost’s products and services
GeoPost’s core business is the express shipping and delivery
(next day within France and next day or within 48 hours for
international intra-European deliveries) of parcels weighing
less than 30kg to companies (BtoB).
GeoPost’s express offering comes in two forms:
Premium Express, guaranteeing next-day delivery,
typically before 13:00 (date and time specified—refund
if not delivered on time);
Deferred Express, ensuring delivery prior to 18:00 the
next day but without any delivery deadline guarantee.
GeoPost is primarily positioned in the road deferred express
parcel segment.
Due to the strong growth of e-commerce, BtoC home
delivery offerings now account for a significant portion of
GeoPost subsidiaries’ business.
(1) Latest E-commerce Europe report.
(2) Source FEVAD.
(3) Source: Sofres-ColiPoste.
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In addition, depending on the market, these BtoC offerings
rely on local networks, thereby offering private individuals
and small businesses several services as follows:
Pick-up of their parcel, at the time and place of their
choice, from a network of pre-determined delivery
locations;
Management of return-to-sender items and delivery
slips;
Pick-up and sale of a reasonably priced offering.
GeoPost was the f irst company to introduce the
"Predict" product onto the market: this service warns
customers of deliveries within a one-hour window, while
the addressee has the option to reschedule the delivery
timeframe up to six days by text message or e-mail, with
a delivery timeframe of one to five hours depending on the
business unit. This option, launched in 2010 by DPD UK in
the United Kingdom, is available for cross-border deliveries,
in particular between Germany, the Benelux and Slovakia.
It is being expanded and deployed by all of the subsidiaries
in Europe.
Communications with addressees significantly reduces
the number of unsuccessful delivery attempts, and results
in a substantial increase in customer satisfaction. This
saves time and also reduces CO2 emissions, by reducing
unnecessary trips.
GeoPost's product range includes:
"DOMESTIC" OFFERING
Deferred Delivery Express Delivery
BtoB DPD CLASSICNext-day delivery
ExapaqNext-day delivery
SEUR 24Next-day delivery
DPD Express: DPD 8:30, DPD 10:00, DPD 12:00,
DPD 13:00 and DPD 18:00
Guaranteed delivery the next day before 8:30, 10:00, 12:00, 13:00 or 18:00
France: Chrono 8, Chrono 9, Chrono 10, Chrono 13, Chrono 18Guaranteed delivery the next day before 8:00, 9:00, 10:00, 13:00 or 18:00
Spain: SEUR 8:30, SEUR 10:00, SEUR 13:30Guaranteed same-day or next-day delivery
BtoC Pickup ServicesThe business units' partner, which is responsible for
IT system implementation and network development.
Delivery service is ensured by the business unit
Examples of business units using the Pickup system: DPD Parcel ShopsDelivery to 4,500 pick-up points in Germany, and delivery
to 531 pick-up points in Belgium
Spain: SEUR-Punto Pack Network & SEUR Own NetOver 870 delivery points in Spain where BtoC customers
can pick up their parcels
France: Chrono RelaisGuaranteed next-day delivery from 13:00 onwards at one of the 6,150 Chrono Relais points
Portugal: Chronopost—Pick Me!Next-day delivery before 13:00 at the 440 Pick Me! pick-up points. (including Madeira and Azores)
39Registration document 2013 / LE GROUPE LA POSTE
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"INTERNATIONAL" OFFERING
Deferred Delivery Express Delivery
BtoB DPD CLASSIC 1-4 day delivery in Europe
7-day delivery worldwide
Chrono ClassicSEUR Classic
DPD Express Next-day delivery in Europe
Express delivery available in over 220 countries
worldwide
DPD GuaranteeGuaranteed delivery to European destinations
Chrono Premium EuropeNext-day delivery in major European cities before 10:30
Chrono Express Europe and worldwideNext-day delivery in the main European cities, and in 2-3 days in main destinations worldwide
SEUR Air CourierGuaranteed delivery in main destinations worldwide
SEUR NetExpress
BtoC DPD Parcel ShopsDelivery in 1 to 4 days available cross-border, notably between Belgium, the Netherlands and Luxembourg
GeoPost customers
GeoPost’s target customers mainly operate in the following
sectors:
High technology and telecommunications;
Fashion and textiles;
Pharmaceuticals, health, biology and cosmetics;
Automotive, steel and tires;
Publishing;
Music and entertainment;
Sports goods.
The subsidiaries develop a service offering tailored to the
specific requirements of their customers.
ColiPoste business activities
ColiPoste products and services
ColiPoste's mission is to deliver parcels to private
individuals in a reliable manner, according to the methods
that they choose, which is at the heart of the relationship
between a company's offering and the customer's order.
The ColiPoste range is focused on three products:
Colissimo: Colissimo is ColiPoste’s flagship product, and
accounted for 80% of the volumes handled in 2013. This
product integrates the key services demanded by private
individual customers, such as fast home delivery (within
two days), online parcel tracking and flat-fee insurance
either included or optional.
Coliéco piloté: economical corporate parcel service with
no guaranteed delivery times. Since November 2009, this
product has been enhanced with systematic scanning at
all shipping and delivery phases.
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Over the past three years, the proportion of tracked
products deliverable within 48 hours has risen sharply, at
the expense of low-cost parcels. The Colissimo offering
combining speed and traceability is becoming the market
standard.
So Colissimo: a new delivery offering that was launched
in June 2010; this high service-content product
accounted for 18% of corporate volumes, excluding
Coliéco, in 2013. So Colissimo offers a 48-hour multi-
option delivery service in Metropolitan France. It offers
a choice between delivery to the addressee's home, by
appointment in the evening between 17:00 and 21:30
(exclusively in Paris), at a secure Cityssimo location
24/7 (where parcels are available for up to 10 business
days), at a post office chosen by the addressee (for
instance, the post office closest to their place of work
among the 10,000 available post offices), or at one of the
5,500 partner retailers.
Addressees choose other delivery methods than home
delivery (primarily delivery to post offices or retailer pick-
up points) in 10% of cases.
3,000 e-retail websites were offering So Colissimo at the
end of 2013.
In response to new lifestyle and customer practices
driven by e-commerce and the growing importance of
the Internet for customers, ColiPoste is introducing new
services organised around its products: online franking
of parcels on the ColiPoste website, parcel tracking with
mobile telephone updates and parcel pick-up according to
the selected options. So Colissimo also provides an email
and/or SMS notification service when the parcel becomes
available, in response to the trend of growing customer
expectations in terms of delivery standards, tracking and
adapting to changing living and work rhythms.
Central to this offering are quality of service and recipient
customer satisfaction. ColiPoste’s quality of service has
reached 95% for 48-hour delivery.
To provide a higher quality service level to a large number
of destinations, La Poste-ColiPoste has signed the main
postal service agreements, including the E-Parcel Group
(EPG) for Europe and the Kahala Posts Group (KPG) for the
world. Membership in these networks makes it possible to
offer a very high quality of service in international regions
with Colissimo International with guaranteed delivery
performances for 15 countries (or more than 70% of
volume).
Through high quality delivery, ColiPoste plays a major role
in boosting confidence in distance purchasing. Indeed, the
distance purchasing decision is highly correlated with the
confidence of shippers and recipients in the delivery service:
66% (1) of web users believe that delivery options for online
purchases represent a determining factor when choosing
a merchant site.
ColiPoste is also conscious that sales price has become a
decisive criterion for customers. E-commerce constitutes a
business model frequently comparable to mass retail with
relatively low margins: transportation costs are of structural
importance for this business and represent a major process
in the value chain of e-retailers.
ColiPoste customers
ColiPoste's customer portfolio breaks down between
distance sales companies (traditional distance sellers and
e-retailers) and private individuals and small businesses.
Thanks to an offering that is suited to the requirements
of companies that ship parcels, ColiPoste has established
high-quality relations with over 50,000 major distance-
selling and corporate customers who now entrust their
shipments to ColiPoste.
ColiPoste's “corporate” business accounted for 71% of its
revenue and 84% of its volumes in 2013.
ColiPoste's customer base of shippers may be broken down
into the following segments:
distance sellers, whether traditional players having
added online sales, e-retailers (pure players) or click-
and-mortar companies.
A long-standing supplier of so-called “traditional”
distance sales companies, ColiPoste has over the
past few years become a very important supplier to
e-commerce companies;
logistics operators, who buy transport services on behalf
of a number of shippers selling a range of private brands;
other parcel shippers (e.g. subscription books,
promotional items).
Customer size is a major segmentation criterion, as
200 customers account for around 70% of ColiPoste’s
“corporate” revenue. They enjoy special options (e.g.
drop-off at sorting platform, pre-sorting, direct shipping,
etc.), depending on the volumes dropped off and the
sorting already carried out. There has been a recent and
rapid development relating to customer concentration,
and some of the flagship brands in the Internet world
recorded double-digit growth in the volumes that
ColiPoste handled for them in 2013.
(1) Internal source.
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ColiPoste offers services adapted to the needs of private
individuals and small businesses in post offices, in large
part under the Universal Parcel Service assigned to
Le Groupe La Poste.
Cash sales online or in post offices meet the shipping needs
of private individuals and small businesses. ColiPoste
estimates that around 70% of these shipments are from
private individuals, and that they meet the following three
requirements:
trading between private individuals, which is made
possible thanks to merchant platforms (40% of this
segment);
distance-selling returns, since distance sellers in
France usually only offer free returns if the order was
not fulfilled properly or as part of after-sales services,
and rarely do so in the event of ordinary cancellations
(30% of this segment);
shipments between private individuals for other reasons
(e.g. gifts, and forgotten items, etc.), which account for
30% of this segment.
5.1.2.4 Outlook and Strategy
5.1.2.4.1 GeoPost outlook and strategy
GeoPost's mission is fundamentally to provide its worldwide
customers with transport solutions with defined deadlines
and related logistics services, with comprehensive tracking
services for the merchandise shipped. It is on this basis that
GeoPost continuously observes the market and evaluates
trends.
Pursuing growth in Europe: organic and through acquisitions
GeoPost is pursuing its strategy aimed at developing a
specialist parcels-express network in the BtoB and BtoC
areas. GeoPost is now number two in Europe and has an
acknowledged strong European (1) network focusing on road
parcels-express.
GeoPost's goal is to become number one in Europe. Since
it was founded almost a decade ago, GeoPost has enjoyed
uninterrupted growth in its European network, either
through acquisitions or organic growth.
The European market is undergoing a phase of
consolidation: the three largest postal operators (in
Germany via DHL, in France via GeoPost, and in the United
Kingdom via GLS and Parcelforce) control over 40% of
the European market. The market is already relatively
concentrated, although it is still very fragmented compared
with the US market, where two operators share 95% of the
market between them. Consolidation can thus be expected
to continue.
GeoPost will make acquisitions whenever they make
sense, either in terms of geographic footprint or in terms
of making useful additions to existing business activities.
GeoPost's strategy in terms of organic growth will be to
increase market share by relying on the efficiency of its
network and the quality of its services.
Developing GeoPost's positions internationally
GeoPost's broader international strategy consists of
duplicating the European model in other major regions of
the world, by aiming to interconnect these regions with the
European Continent, including:
developing the network in Eastern Europe and Asia:
GeoPost's road network in Eastern Europe and Asia
stretches from France to Russia, including Belarus,
Ukraine, Kazakhstan and Turkey. This network operates
under the DPD brand, except for Turkey, where the
network operates under the Yurtiçi Kargo brand.
GeoPost has already linked up all its networks in this
part of the world; conversely, the Eastern European
and Asian network is currently being connected to the
European network; this road connection is now a priority
for GeoPost. The toC market is experiencing strong
growth in this part of the world, and GeoPost has already
focused its business on this market in all the countries
in question.
developing the network in South-East Asia and in Africa,
and more specifically in India (where GeoPost acquired
a 40% share capital in DTDC in 2013), in the Republic
of South Africa (where it operates with DPD Laser), in
the Far East (where GeoPost has partnerships with the
Chinese and Japanese Postal Services), as well as in
South-East Asia (Indonesia, the Philippines, Vietnam,
Thailand and Malaysia).
GeoPost will also rely on Tigers, Sodexi and Lenton
(Cathay Pacific) for the growth in inter-continental traffic
between its various regional networks (Europe, Eastern
Europe and Asia, South-East Asia and Africa).
Pursuing its capital expenditure strategy
The efficiency and quality of GeoPost's solutions guarantee
the success of its customers. GeoPost has made substantial
targeted capital expenditures, in order to drive growth,
deliver a high-quality service and optimize its regional
coverage over the past few years; these capital expenditures
have enabled it to open and expand hubs in France and
Europe, and to equip its delivery staff with portable
scanners, etc.
(1) Internal source.
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GeoPost's strategy is to pursue these investments in
infrastructure, technology and personnel. In 2013, GeoPost
announced the construction in the United Kingdom of the
largest hub in Europe that will be operational in 2015.
This high-performance platform for processing parcels
will increase the capacity of its network in order to meet
customer needs. DPD also invests in Russia, where it is
the leader in the Russian express delivery market, via the
development of new branch offices and of its network.
Expanding into BtoC markets, notably through the development of PickUp and DropOff
GeoPost's goal is to build the largest network in Europe
with a unified and coherent structure offering European
shippers a consistent level of service. The aim is to pursue
the development of the Pickup model in other countries in
2014, after Germany and the Benelux countries.
All merchant partners will be equipped with PDAs that will
send a notice of availability by email or SMS on the parcel's
receipt. The offering may be replicated in other countries
covered by the DPD network, as and when required.
Driving product innovations and customer satisfaction
GeoPost is focusing on enhancing the customer experience,
in line with the examples below, which illustrate best
practices within the Group.
DPD UK has launched "Follow My Parcel", the first live
parcel tracking service. Thanks to this new service,
customers can follow their delivery in real-time via
an interface that combines mapping software and
the delivery vehicles' GPS system, calculate the time
remaining, and obtain the narrowest possible delivery
slot (15 minutes). In the same way as Predict already
enables them to do, they can also select the option to
have their parcel delivered to a neighbour.
The customer experience is enhanced thanks to the use
of the very latest technology available, such as the option
for customers to access the "track and trace" page on
their mobile phone or tablet via a secure link, as well as
to use responsive web design technologies. Customers
have warmly welcomed this solution, and have shared
their experience on social networks. This initiative has
enabled DPD UK to really stand out in its market.
In Estonia, DPD Estonia introduced an immediate feedback
system in October 2013, which enables customers to
express their opinions on the service that they received
(delivery service, customer service and sales).
To conclude, GeoPost, which specializes in the road delivery
of express parcels, is building three competitive benefits
compared to the competition:
the hybrid (BtoB and BtoC) nature of its world-wide
networks;
the extent, consistency and continuity of its regional
networks;
the advanced industrialization of its operations, and
the incorporation of new technologies in operating
processes.
The strategy should enable GeoPost to grow faster than
the market, and therefore play a role in the market's
consolidation.
GeoPost's business performance relies on growing volumes
and the development of international (intra-European, intra-
region, and intercontinental) traffic.
GeoPost’s development outside Europe is based on the
same business model as the European model.
5.1.2.4.2 ColiPoste’s outlook and strategy
Col iPoste has implemented i ts strateg ic p lan:
"Satisfaction 2015: we are all working for our customers".
This plan underlines the commitment to put customers at
the centre of strategic priorities:
ColiPoste will continue to simplify and develop its
parcel delivery service offering. In particular, increased
interactions with customer recipients will make it
possible to respond more effectively to their need
for information about the delivery of their parcel, the
choice of date and place of delivery. These changes
should ensure successful delivery and offer addressee
customers even more choice. An innovation will also be
introduced for the sending of parcels.
Operational reliability and the fulfilment of service
commitments remain the cornerstone of business and
of customer satisfaction: service quality indicators
are systematically monitored, and must contribute
to ongoing improvements in processes. In addition
to internal indicators, a new customer satisfaction
indicator based on the Net Promoter Score method (Net
Recommendation Index) will also be used. The aim is to
supplement service quality assessment with a metric that
takes customers' viewpoints into account. This indicator
involves asking service users about their customer
experience and checking if they would be ready to
recommend those services, and therefore promote them.
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For ColiPoste, the target is to remain the preferred parcels
delivery service in France by virtue of its reliability and its
range of delivery solutions. The So Colissimo brand should
progressively become the new benchmark for secure
delivery of distance purchases.
ColiPoste defined a number of strategic priorities:
increasing competitiveness through innovation by
implementing parcel delivery and shipping solutions that
meet customers' expectations;
implementing a value-creating relationship for shipping
customers;
ambition to strengthen addressee customer satisfaction;
ensuring cost control and operational reliability, pursuing
the investment strategy for its network and information
system.
ColiPoste is also pursuing its staff development policy
in order to strengthen collective performance and team
satisfaction as essential conditions for achieving its
strategic goals.
5.1.3 Banking Activities
2013 2012 2013/2012 change
(€ million) amount %
Net Banking Income 5,539 5,241 +298 +5.7%
External Net Banking Income 5,522 5,217 +305 +5.8%
Intercompany NBI 17 24 -7 -27.9%
Operating profit 708 621 +87 +14.0%
5.1.3.1 Overview of La Banque Postale
5.1.3.1.1 History
Traditionally active in deposit taking and property lending,
Le Groupe La Poste Financial Services underpinned
the Group’s development since the early phases
marking the transition from the French Post Office and
Telecommunications company into two independent
operators: France Télécom and Le Groupe La Poste.
Following its separation from the French government
ancillary budget, La Poste became legally autonomous
on 1 January 1991. It continued to offer deposit taking and
property lending with prior savings via its Financial Services
arm, albeit without enjoying the status of a credit institution.
As a result, sight deposits (CCP—postal bank accounts)
were pooled daily at the French Treasury. A similar
arrangement also applied to regulated savings accounts
(i.e. home ownership savings plan, Home Savings Accounts
(CEL) and Livret A passbook savings accounts), the balances
of which were pooled within the Savings Funds managed by
Caisse des Dépôts. Property loans were ultimately granted,
subject to there being prior savings, by Financial Services
but were recognised on the balance sheet of the Home
Savings section of the Savings Funds.
Le Groupe La Poste later proposed retaining sight
deposits and taking over the financial management itself.
In February 2000, it requested approval from the Comité
des établissements de crédit et entreprises d’investissement
(Committee of Credit Institutions and Investment
Companies—CECEI) to create an investment company
whose purpose was to financially manage these resources.
In 2005, Le Groupe La Poste proposed to create a subsidiary
with banking status that had the ability to carry all of its
customers' deposits, and all the loans on its balance sheet,
as part of the Government Planning Agreement.
On 30 November 2005, CECEI authorized Efiposte to take
over the rights and obligations of La Poste’s Financial
Services, in order to become La Banque Postale.
Likewise, on 21 December 2005, the European Commission
concluded that the founding of La Banque Postale would not
jeopardize competition in the banking sector.
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La Banque Postale was therefore founded on 31 December
2005, via the legal transformation of Efiposte, which was
authorized by Act 2005-516 on the regulation of the postal
activities of 20 May 2005. This law provided for Le Groupe
La Poste to set up a subsidiary into which all the assets,
rights and obligations relating to La Poste’s Financial
Services would be transferred, including those relating to
deposit and savings accounts, and more generally, to any
kind of agreements opened or entered into with La Poste
in this context.
The law regulating postal business gave Le Groupe La Poste
a public service mission in the banking, financial and
insurance sector by giving it an obligation to offer products
and services to as many people as possible, notably the
Livret A savings account. Within this framework, La Banque
Postale is obligated to open a Livret A savings account to
anyone who requests it for free. An essential point of its
public service mission is to authorize payment transaction
on Livret A relating to social security benefit. and public
employee pensions and withdrawals pertaining to duty
and tax payments, water, gas and electricity receipts and
social housing rent. Lastly, La Banque Postale is the only
bank where withdrawals and deposits on Livret A passbook
savings accounts are authorised starting at €1.50.
When established, La Banque Postale was authorised to
expand its range to cover all forms of property lending.
Previously, La Poste could only offer them to customers
with prior savings, via Home Savings Plans (PEL) or Home
Savings Accounts (CEL).
Following the European Commission's decision asking
France to no longer restrict the distribution of Livret A
passbook savings accounts to traditional operators, the
French Economy Modernisation Act of 4 August 2008 opened
up distribution of the Livret A passbook savings account to
all banks as long as they entered into an agreement with
the French government. For its part, La Banque Postale saw
its banking accessibility mission with respect to the Livret A
passbook savings account legally defined and recognised.
In 2007, the French government granted La Banque Postale
a licence to expand its product range to consumer credit
and as from 2009, to property insurance. These moves were
approved by the relevant authorities.
In August 2010, La Banque Postale also obtained an
authorization from the Minister of the Economy, Industry
and Employment to draft an offering of financing products
and services for corporates. On 5 September 2011, this
culminated in the authorization by the French Prudential
Oversight Authority (Autorité de contrôle prudentiel) to
provide financing for corporates (SMEs, micro-businesses,
non-profit organizations, social housing operators, etc.).
La Banque Postale therefore entered a new stage, and now
offers all the products and services of a retail bank.
La Banque Postale was authorized to finance the local
public sector by the French Prudential Oversight Authority
on 25 May 2012, and has been offering local authorities
short-term loans since June 2012, and medium and long-
terms loans at fixed or reviewable rates, and maturities of
up to 15 years since November 2012.
Lastly, La Banque Postale strengthened its position in the
social home ownership scheme for low income families,
and in 2012 made several partnerships with players
in social housing (the National Cooperative Housing
Federation, Maison France Confort). These partnerships aim
to secure the financing provided by implementing protective
provisions for borrowers.
In this connection the Board of Directors of Le Groupe
La Poste authorized La Poste to subscribe to an initial
€860 million increase in La Banque Postale’s capital
on 26 August 2011. The primary purpose of this capital
increase was to support the development of La Banque
Postale’s lending activities (property loans, consumer credit,
and lending to legal entities). This decision also enabled the
introduction of a more diversified management process for
the Bank’s balance sheet, by making use of its strong cash
position.
At its meeting on 28 November 2013, which was chaired by
Philippe Wahl, the Board of Directors of Le Groupe La Poste
authorized a new increase of over €1 billion in La Banque
Postale’s equity capital (1). This transaction represents
a major step towards consolidating the Banks’ financial
structure and solvency, in accordance with the strategy
aimed at developing its lending businesses. The investment
consisted of a capital increase via the contribution of the
company that owned La Banque Postale’s head office, which
was valued at €228 million, corresponding to its market
value on the date of the transaction together with a hybrid
subordinated Tier 1 issue amounting to €800 million, which
was entirely subscribed by Le Groupe La Poste.
(1) And related receivables. Head office located 115, rue de Sèvres, 75006.
45Registration document 2013 / LE GROUPE LA POSTE
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5.1.3.1.2 Overview of La Banque Postale
La Banque Postale, a public limited company with an
Executive Board and Supervisory Board, is the parent
company of La Banque Postale group.
As the successor to La Poste Financial Services, it inherited
the Group’s values of trust, accessibility and proximity, giving
it an original and unique positioning in the French market.
This policy is reflected in a strategy based on moderate
service tariffs, accessibility for all customers and simple
products that focus on customers’ requirements.
La Banque Postale's business activities are focused on
retail banking operations in France, and private individuals
in particular. Its operations are structured around three
business activities:
Retail Banking, its core business, which primarily
focuses on retail customers, and was extended to
included corporates in 2011, and local authorities in
2012;
Insurance (life, contingency, property and health);
Asset Management (asset management companies and
private wealth management).
La Banque Postale's has 3,500 direct employees spread
throughout France. Moreover, the 17,860 Financial
Services employees in the financial centres are placed
under the responsibility of the Chairman of La Banque
Postale’s Management Board, in his capacity as Deputy
Chief Executive of La Poste in charge of Financial Services.
This organizational structure is specifically dependent on
22 financial centres (18 in Metropolitan France and four
overseas), including six national financial centres that have
specific expertise, and a dedicated IT Department. It also
relies on 39 subsidiaries and strategic equity investments,
and on the distribution capacity of La Poste's network.
At 31 December 2013, La Banque Postale had:
10.7 million active customers;
11.6 million deposit accounts;
9,702 advisors and customer managers;
684 real estate advisors, 811 wealth advisors and
77 wealth management advisors;
7.47 million bank cards, and 7,000 self-service kiosks
and ATMs;
€200 billion in total balance sheet assets.
5.1.3.2 Structure
5.1.3.2.1 Functional structure
Wholly-owned by La Poste, La Banque Postale is both a
Group customer (in particular of Mail) and supplier, acting
as its main bank. La Poste acts as a service provider by
assigning to La Banque Postale employees who work “in
the name and on behalf of” La Banque Postale.
The relationship between La Banque Postale and La Poste
is governed by service agreements provided for by the Act
of 20 May 2005. These agreements cover various services,
such as commercial relations via a framework agreement, a
Commercial Charter, provisions relating to inspections and
oversight, combating money laundering and the financing
of terrorism, and agreements governing the use of staff and
various other service agreements.
The La Poste staff assigned to La Banque Postale
implement the Bank’s policies in its name and on its behalf.
In accordance with specific rules, it was given the necessary
powers by the Bank to carry on banking activities, primarily
encompassing back-office and middle-office operations, IT
support and the financial products sales force.
Counter services are carried out the Retail Brand’s network
of post offices and are governed by agreements specifying
the types of transactions to be carried out, the relevant
unit price based on the economic system, the prescribed
procedure and quantitative and qualitative service criteria.
La Banque Postale has an Executive Board and Supervisory
Board with independent members.
The Supervisory Committee is assisted by three Special
Committees:
Audit Committee;
Strategy Committee;
Appointments and Remuneration Committee.
5.1.3.2.2 Capital structure
The structure of La Banque Postale reflects La Poste's
Financial Services organizational structure and consists
of, in particular:
La Banque Postale, parent company of the Group
(formerly Efiposte) to which the Financial Services
businesses were transferred. It is also the core of the
Retail Banking activities;
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SF2, a holding company for La Banque Postale's
subsidiaries and investments with the exception of a few
entities directly held by La Banque Postale. Since SF2
already existed during the La Poste Financial Services
era, it was transferred to La Banque Postale when it
was established, at which time it already controlled the
Insurance and Asset Management businesses.
The most recent acquisitions or creations are held directly
by La Banque Postale, in line with the example of BPE or
La Banque Postale Collectivités Locales.
5.1.3.2.3 Partnerships
In order to expand the scope of its business activities and
its areas of expertise, and to better respond to customer
requirements, La Banque Postale instituted a very active
partnership policy designed primarily to effectively share
expertise and control costs while staying true to its core
values.
The La Banque Postale's multi-partner strategy is based on
the sharing of expertise, technology and systems, and on
customer access. Through these partnerships, La Banque
Postale can quickly move into new businesses on the back
of the expertise of major market players, enabling it to
provide its customers with a broader and more innovative
offering.
Insurance
This strategy was initiated with CNP Assurances in life
insurance, with Financial Services distributing a range
of life insurance contracts since 1989. In 1998, CNP
Assurances and La Poste's Financial Services decided to
set up a company, which was renamed La Banque Postale
Prévoyance in 2007, to provide a range of personal risk
products covering the needs of La Banque Postale.
In 2009, La Banque Postale entered into a partnership with
Groupama in property insurance via La Banque Postale
Assurances IARD, a subsidiary in which La Banque Postale
has a 65% stake.
In 2010, a partnership was entered into with La Mutuelle
Générale in health insurance via the creation of the
La Banque Postale Assurance Santé subsidiary, also 65%
owned by La Banque Postale.
Loans
In 2009, La Banque Postale obtained the authorization from
the Credit Institutions and Investment Firms Committee
(CECEI) to distribute consumer credit, and created a
partnership with Franfinance, a subsidiary of Société
Générale. La Banque Postale Financement, 65% owned
by La Banque Postale via SF2, is the company providing
these loans, distribution being the responsibility of the post
offices, distance communication channels or a dedicated
call centre.
Created on 27 March 2013, La Banque Postale Collectivités
Locales, 65%-held by La Banque Postale and 35%-held
by Caisse des Dépôts, provides services relating to the
marketing of loans to municipalities and hospitals by
La Banque Postale. These loans are then refinanced by
Société de Financement Local (Sfil), a company in which
La Banque Postale (5%) and Caisse des Dépôts (20%) are
also shareholders.
Means of payment
In 2008, La Banque Postale and Société Générale created
Transactis, a joint venture designed to pool resources
from the two partners in order to develop and operate
computerised banking information systems. Transactis
therefore processes all the transactions of La Banque
Postal and Société Générale with retailers and also all of
the flows between the two institutions (La Banque Postale
and Société Générale). At the end of 2012, Le Crédit du
Nord joined La Banque Postale and Société Générale within
Transactis, confirming the Transactis solution's ability to
manage a "multi-bank" banking group including several
different names.
On 17 September 2013, BNP Paribas, La Banque Postale
and Société Générale announced the launch of Paylib,
a company proposing a new simple and secure online
payment solution. With Paylib, three banks meet customer
needs for simplicity and security by proposing a new
method of online payment from a computer, smartphone
or touchscreen tablet that does not require them to enter
their bank details. La Banque Postale holds 33.33% of this
new company.
Other partnerships
In 2006, La Banque Postale and Natixis founded a
subsidiary, Titres Cadeaux, a 50/50 joint venture, to market
multi-retailer gift vouchers and cards to private individuals,
professionals, companies and works councils.
In 2007, La Banque Postale set up La Banque Postale
Gestion Privée with Oddo & Cie, in which La Banque Postale
holds a controlling interest, to develop a discretionary asset
management service offering. In accordance with the heads
of agreement, it was decided in 2012 that the agreement
between La Banque Postale and Oddo & Cie with La Banque
Postale Gestion Privée not be extended. La Banque Postale
became the sole shareholder in La Banque Postale Gestion
Privée on 27 June 2013.
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5.1.3.3 La Banque Postale business activities
La Banque Postale business activities are split into three
divisions: Retail Banking (including the customer segments
comprised of private individuals, companies and local
authorities, Insurance and Asset Management.
5.1.3.3.1 Retail Banking
Retail Banking includes the activities of La Banque Postale
and the retail banking subsidiaries, like La Banque Postale
Financement, La Banque Postale Crédits Entreprises and
BPE.
The retail bank is organised around the sector covering
the marketing of products to retail customers in the area
of deposit, savings and loans (housing and consumer),
means of payment and insurance products. It also includes
the lending and deposit businesses for companies,
professionals, not-for-profit organizations, and the local
public sector. Lastly, it includes the business carried out
with the support of La Banque Postale Collectivités Locales.
Other related activities are included in this segment, such
as the real estate investment partnerships (SCIs) that own
the facilities used by the financial centres in Metropolitan
France and overseas, as well as SF2, which owns La Banque
Postale's equity investments and receives dividends from
non-consolidated investments.
A unique model in the French landscape
La Banque Postale operates an original business model
in the French banking market. With close to 10.7 million
active customers and 435,500 legal entities customers
(companies and non-profit organizations) at the end of 2013,
the development of La Banque Postale depends on building
and maintaining a long-term customer relationship offering
innovative solutions. It constitutes a model of a bank close
to its customers, transparent, attentive to their needs, with
a human dimension. In September 2013, the quarterly
barometer, Posternak/Ifop that evaluates the image of the
global brand of banks with consumers, ranked La Banque
Postale second, underlining the strength of La Banque
Postale's position in the daily lives of the French population
and as a provider of financing to the real economy.
A model geared towards customer satisfaction
This development model is centred on understanding
customers' requirements, on the advice offered to them,
and on supporting all customers, including customers of
modest means and marginalized customers.
This support is provided by over 31,000 people, including
over 3,560 employees working at La Banque Postale and its
subsidiaries, and over 27,400 La Poste employees, working
exclusively in the name and on behalf of La Banque Postale,
in bank back-offices (financial centres), IT, or in the advisory
and marketing businesses, mainly within the post offices.
Moreover, 31,796 counter clerks provide multi-business line
assistance at around 10,000 post offices that are part of the
La Poste Retail Brand.
La Banque Postale also relies on a network of over
6,984 ATMs used by La Banque Postale spread across the
country, which handled over 520 million transactions in
2013.
A resolutely multi-channel model
La Banque Postale aims to build a close relationship with its
customers, notably by means of an innovative multi-channel
relationship that enables each customer to decide how they
will interact with La Banque Postale: face to face in a post
office, by telephone, via the Internet, as well as by a new
means of long distance communication, La Banque Postale
Chez Soi. Today one third of La Banque Postale's customers
use the Internet to manage their accounts.
This close relationship with customers is built and
relies on the relationship with the post office, thanks to
the 9,702 advisors and customer managers who serve
customers, as well as on a new branch layout named
“Espace Service Client” (Customer Service Area—ESC),
which was rolled out at 1,659 locations at the end of 2013,
and aims to strengthen the way customers are dealt with,
the visibility of La Banque Postale, and to reduce waiting
times.
The financial centres also play an important role in this
multi-channel relationship: close to 6,000 employees in the
financial centres are dedicated to processing transactions
and customer relations, and they receive and handle nearly
16 million calls. Since 2009, the national customer relations
centre has been tasked with responding to existing and
potential customers with queries regarding La Banque
Postale and its products. A unique telephone number,
3639 (1), was set up. The three specialised platforms of the
subsidiaries La Banque Postale Financement, La Banque
Postale IARD and La Banque Postale Assurance Santé also
play a major role in this remote customer relationship.
(1) €0.15 including tax per minute + potential surcharge depending on the operator.
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The web portal at www.labanquepostale.fr allows customers
to interactively participate in this relationship. This site
welcomes 498 million visits per year. In 2010, La Banque
Postale also launched its website labanquepostale.mobi
for smartphone technology and completed the available
applications through three products aiming to support
mobile users in their budget management and project
development. Since the end of 2011, the Banque Postale's
Smartphone banking application is available on mobile
telephones sold in post offices, thereby reinforcing the
synergies between La Poste and La Banque Postale.
Furthermore, La Banque Postale has been experimenting
with mobile payment since June 2013, by testing the
micro-SD technology for contactless payments using a
smartphone with merchants equipped with compatible
payment terminals.
Today, 46% of contacts between customers and their bank
are through digital technologies.
An ever-changing model to adapt to new technology
La Banque Postale customers now have the possibility
to have a complete long-distance banking relationship
thanks to the new mode of communication “La Banque
Postale Chez Soi”. This new long-distance communication
channel (1) allows the user to access all of La Banque
Postale's products and services at the same rate as their
other communication channels, but also manage money
completely anonymously and benefit from real support by
a team of dedicated advisors.
In 2013, in the multi-channel area, the Group is pursuing its
innovation strategy with the launch of the "Talk to Pay" voice
authentication technology for purchases at a merchant site.
With Paylib's creation in September 2013, La Banque
Postale proposes to its customers the possibility to make
payments online from their computer, tablet or smartphone
with all participating merchants having the payment Paylib
icon on their payment page.
Markets
Private individual customers
Customer relations are a key driver in the development of
La Banque Postale, which places the customer’s interests
at the centre of all its business activities, from product
design to advice given to customers. In 2013, in the retail
market, La Banque Postale continued the deployment of
customer-focused commercial initiatives, including for
example promotional days proposing several special offers
for: bank cards, consumer credit, casualty insurance, and
personal risk and health insurance.
One of La Banque Postale's main areas of focus is
accessibility, enabling it to be an inclusive bank and to offer
a basic range of products and services. It is also reliant on
product innovation in order to provide specific and tailored
solutions to customer needs. La Banque Postale offers a
range of services adapted to the needs of both younger and
older customers and high net-worth, fragile or low-income
population segments or families.
La Banque Postale also proposes solutions for younger
customers to facilitate the daily banking operations of their
money, specialised account options, recommendations for
building up savings as well as a special savings product,
Livret Jeune Swing. La Banque Postale also provides
solutions for the financing of their studies through a special
student loan offering, as well as a personal apprenticeship
loan allowing them to finance all or part of their professional
training. In addition, in 2013, La Banque Postale introduced
a health insurance offering for young people during stays
outside of France. In 2013, 1.2. million young people opened
their primary bank accounts with La Banque Postale.
La Banque Postale provides private individuals with the
complete range of solutions and products of a full-service
retail bank:
Overnight accounts
La Banque Postale offers an à la carte account formula
(“formule de compte”) that allows products and services
to be tailored to the needs and financial situation of each
customer.
With close to one million gross account openings in 2012
and 650,000 at the end of December 2013, the total portfolio
for this category of overnight accounts reached more than
6 million accounts.
(1) "La Banque Postale Chez Soi" that has been in a test phase since 2010, was rolled out at the national level in 2012.
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In an environment marked by uncertain economic
conditions and low returns for savings products, sight
deposits reached 47.7 billion, or a 15% underlying market
share for households (1), the increase in the ceiling for
Livret A passbook savings accounts and LDD Sustainable
Development savings accounts (Livret de Développement
Durable), encouraging fund transfers to these two types of
vehicles.
Cards and cheques
La Banque Postale distributes bank cards, the total number
of which amounted to 7.47 million as at the end of 2013, i.e.:
a +4.3% rise in the number of cards plus a +38% rise for
high value-added cards (Visa Premier);
up +8.7% for transactions through payment cards with
merchants and companies.
La Banque Postale's market share for all CB bank cards
grew further to reach 12.5% at the end of September 2013
(compared with 12.3% in 2012).
To improve service quality and reduce the time it takes
to process cheques deposited by customers, in 2011,
La Banque Postale launched a program to equip post
offices with automated cheque deposit machines or cheque
scanners for prompt crediting to customer accounts. The
roll out of these automated machines started in February
2011. This process was completed at the end of 2013 with
670 automated cheque deposit machines, as well as more
than 3,780 scanners installed in post offices.
In addition, La Banque Postale is authorised to issue Chèques
Emploi-Service Universel (CESU), a system that enables
private individuals to pay salaries and social security charges
with respect to people they employ at home. It also has a
16.66% interest in the economic interest grouping GIE CESU,
an entity created with five other partners for the purposes of
processing and cashing CESUs.
Gift vouchers
With respect to gift vouchers, La Banque Postale holds
50% of SAS Titres Cadeaux, a non-consolidated 50/50 joint
venture held with Natixis. The purpose of this venture is to
create, promote, issue, distribute, process and refund all
gift vouchers and other special forms of payment that are
not within the scope of banking monopoly and which can
be used to purchase specific goods or services from a list
of stores or other companies. In June 2011, the Company
began marketing its multi-brand gift card, CA DO CARTE,
the sales network of which was expanded in 2012. In 2013,
Titres Cadeaux won for the second consecutive year the
prize for the "Best Consumer Gift Card Programme" for
CA DO CARTE.
Savings products
Balance sheet savings products
In 2013, La Banque Postale's customers continue to
prefer liquid and secure savings vehicles. The effect of the
significant rise in the ceiling for Livret A passbook savings
accounts and Sustainable Development savings accounts
(LDD) in 2012 continued in early 2013, resulting in net
collections of €2 billion at the end of December. According
to the latest OPERBAC study (Observatoire permanent de
la banque, de l’assurance et du crédit) La Banque Postale
accounted for 26.7% of Livret A passbook savings accounts
holders.
With centralized Livret A passbook savings, Sustainable
Development savings accounts and Popular Savings
accounts balances of €76.6 billion, La Banque Postale
accounts for around 19.4% of the market in these three
products (source: Banque de France). The homes savings
product range includes the PEL (Plan Épargne Logement)
and Home Savings Accounts (CEL). Outstandings for these
two products remained steady in 2013 at €27 billion. Home
savings experienced a mixed situation, with strong inflows
into PEL accounts (€640 million at the end of November)
due to the very attractive PEL rates, and outflows from
Home Savings Accounts (CEL) accounts (-€637 million at
the end of November).
Financial savings products
In the financial savings area, the UCITS balance increased
by 1.3%, against a more favourable backdrop for equity
markets. La Banque Postale offered equity, money-market,
and bond funds on a regular basis over the year, as well as
guaranteed products protected at maturity (in life insurance
and as Share Savings Schemes), which enable customers
to take advantage of a potential rise in the markets within
a controlled risk framework. The Bank's discretionary
management business also continued to expand.
Although the life-insurance market recovered and recorded
net positive inflows, La Banque Postale recorded more
moderate inflows in 2013, following a good performance
in 2012. The proportion of unit-linked (2) policies recorded
a significant increase due to the success of the fund-
switching mandate offering, and to people taking into
account the need to diversify their assets. Market share in
terms of assets at 8.3% declined marginally to reach total
assets of €121 billion.
(1) Source: Banque de France.
(2) Unit linked accounts are investment vehicles expressed in transferable securities, i.e. listed bonds or equities, and units in investment companies, mutual
funds or real estate companies.
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Overview of business activities Presentation of business activities5
Home loans
2013 was marked by an increase in outstanding home loans
+10.7% bad conditions (decrease in transactions, decrease
of the number of real estate loans granted, speculative
bubble in certain regions).
The expertise and professionalism of the property advisors
specialised in real estate have resulted over the year in a
funding agreement of more than 78,000 projects, including
more than 68,000 purchases of old and new properties.
La Banque Postale's National Centre for real estate
Relations (CNMRCI—Centre national de mise en relation
du crédit immobilier), comprises approximately 40
account managers responding to information requests
from customers and prospects. In 2013, it made 16,700
appointments, more than 133,000 outbound calls and more
than 43,500 inbound calls.
La Banque Postale also supports its customers in their
first home purchase with financing solutions adapted and
eligible for subsidised loans (Home Ownership Savings
Plans, Zero Interest Loans, etc.).
For young customers, which La Banque Postale has
prioritised in its business development, the “Pactys Avenir”
offer provides a home loan with a special rate designed
for young people under 36 to help with the purchase of a
primary residence, without an initial contribution.
Meeting for the first time on 19 April 2013, the La Banque
Postale's Steering Committee for the promotion of social
home ownership enabled La Banque Postale to present
a first report on actions in favour of home-ownership
among low-income households, notably by implementing
partnerships with social housing stakeholders to develop
solutions for acquiring a home.
Consumer credit (La Banque Postale Financement)
La Banque Postale Financement (LBPF), specialised in
consumer credit, is a 65%-owned subsidiary of La Banque
Postale in partnership with Société Générale. It was granted
a licence from the CECEI in April 2009. As such, La Banque
Postale enhanced its range by launching its first range of
LBPF products.
This offering was built in the spirit of the new Act 2010-737
of 1 July 2010, known as the “Lagarde Act”, on consumer
credit and banking reform, and is based on the values of the
bank, in particular regarding customer transparency and
the attention given to potential debt problems.
It offers, in particular:
responsible practices for providing customers with loans
that reflect their needs;
educational practices with clear and transparent
documentation;
support options (budget reviews) throughout the life of
the loan;
socially responsible practices through a Support
unit within the customer relations centre itself and
partnerships with the Crésus association for financially
fragile customers.
At the end of 2013, La Banque Postale Financement had
more than 408 employees operating from two locations in
the Paris region.
Outstanding consumer credit reached €3.4 billion at the
end of 2013.
Online broking
La Banque Postale has a wholly-owned subsidiary,
EasyBourse, providing online broking services for those
customers who want to manage their investment portfolio
transactions on their own. This subsidiary provides easy
access to foreign stock markets, a wide range of financial
instruments and products, deferred settlement services and
information via articles, special reports and interviews with
experts.
In October 2012, EasyBourse launched a mobile telephone
application, available on iPhone and Android, allowing
users to follow the Stock Exchange, manage their accounts
(positions, unrealised gains or losses, committed and
available cash, order book) and place orders.
Microcredit
La Banque Postale is a pioneer in the social microcredit
sector in France. In May 2007, the Social Cohesion Fund
approved the Bank’s application to be covered by the fund’s
guarantee. In this respect, La Banque Postale entered into
over 95 micro-loan agreements with regional associations.
It also participates in Espoir Banlieues, a specialised
support plan for young unemployed people in marginalised
areas, and has teamed up with Union nationale des centres
communaux d’action sociale. In 2012, La Banque Postale
entered the professional micro-loan market next to Adie,
an association known for public utility and a major player
in the micro-loan market in France.
Other business activities
The fund transfer business is another field in which it is
active, comprising two separate business activities: firstly,
51Registration document 2013 / LE GROUPE LA POSTE
Overview of business activities Presentation of business activities 5
the money order business, inherited from La Poste and
enabling international transfers within the Universal Postal
Union, and secondly, the Western Union transfers also
offered in post offices. In October 2013, Western Union and
La Banque Postale announced the renewal of their long-
term partnership that gives customers access to Western
Union's money transferring services in France.
La Banque Postale has also set up innovative partnerships
aimed at enhancing its offering for young customers (aged
between 18 and 29, or 1.2 million customers) through
innovative partnerships, and by supporting KissKiss
BankBank, a project fund-raising website.
Lastly, outside France, La Banque Postale Consultants, a
wholly-owned subsidiary, provides consulting services for
setting up a new post office banking offer.
Financially vulnerable customers
In addition to its mission of facilitating access to banking
services, La Banque Postale exercises a key role in
combating banking exclusion through day-to-day initiatives
promoting access to a large number of quality banking
services and supporting financially vulnerable customers.
In order to prevent over-indebtedness, since 2007,
La Banque Postale has offered a personal micro-loan offer
in partnership with local non-profit organizations (notably
the Secours catholique, UDAF, the French Red Cross,
Les Restaurants du Cœur, etc.) responsible for detecting
and supporting projects concerning people experiencing
banking exclusion from their weak solvency. In 2013, the
number of micro-loans granted rose 66% in relation to
2012.
Since June 2012, La Banque Postale also offers a
professional micro-loan product, in partnership with Adie.
The objective is to promote the creation of businesses by
persons excluded from the labour market without access
to banking credit.
La Banque Postale is also conducting experiments to
better serve its financially insecure customers and to
promote banking inclusion. Since its creation in 2006,
La Banque Postale has united with Union nationale des
centres communaux d’action sociale (National Union of
Social Action Community Centres—UNCCAS) to improve the
information, advice and positioning of people experiencing
banking exclusion. This partnership was expanded in 2010
with the REFLEX project (Réagir Ensemble et Fédérer la Lutte
contre l’Exclusion—React Together to Combat Exclusion) the
objective of which is to coordinate La Banque Postale and
CCAS's respective actions to help customers of La Banque
Postale rebound from their financially insecure position.
This experimentation was praised and recognised as an
example of best practices in measures to combat banking
and social exclusion (2012 Annual Convention of the
European Platform against Poverty and Social Exclusion in
December 2012).
The latest major innovation in providing support to
financially vulnerable customers: in November 2013,
La Banque Postale created a platform called "L’Appui",
providing banking advice and guidance accessible at the
customer's initiative through a unique abbreviated phone
number without a surcharge. The mission of this new
service is twofold: on the one hand, assist customers of
La Banque Postale experiencing exceptional or recurrent
financial difficulties and, on the other hand, contribute to
preventing situations of financial vulnerability.
The commitment of La Banque Postale is also exemplified
by its support of several educational projects of the IEFP
(Institut pour l’éducation financière du public), authorised by
the French national education system, destined to assist
persons acquire a basic knowledge about financial matters.
Finally, in October 2012, a think and action tank called
"The Initiative Against Banking Exclusion" was created to
unite the players involved with the social and associative
world who want to develop new initiatives against banking
and financial exclusion. As an open initiative, members of
this think tank currently include ATD Quart-Monde, ADIE,
Crésus, the French Red Cross, La Banque Postale, Emmaus
France, Habitat et Humanisme, Les Restos du Cœur, the
Secours catholique, the Secours populaire and UNCCASS.
High net-worth customers
La Banque Postale currently has more than 600,000 High
net-worth customers to whom it offers products and
services which now makes up a range:
investment solutions, notably discretionary management
service offered by La Banque Postale Gestion Privée and
inheritance funds offered by Tocqueville Finance and
La Banque Postale Structured Asset Management;
high-end life insurance (Cashmire, a multi-support
and multi-manager contract, Excelis, a contract with
arbitration delegation, and Toscane Vie;
premium means of payment (Visa Platinum Visa Infinite
cards);
tax optimisation solutions (Sofica, capital expenditure
managed by XAnge Private Equity, real estate investment
with La Banque Postale Immobilier Conseil, and Ciloger).
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To serve its high net-worth customers, La Banque
Postale employs a dedicated team of 811 specialist asset
management advisors across France, plus a team of
77 wealth management advisors for customers with the
most assets.
The special ised asset management and wealth
management advisors are able to offer the full range
of La Banque Postale products, the UCITS range, life
insurance products, high-tech funds, REITs and real estate
funds.
For real estate projects, these advisors work with the
Group's advisors possessing specific expertise in this area.
The wealth advisors have also been able to rely on BPE,
La Banque Postale's new subsidiary, since 2 April 2013.
La Banque Postale acquired BPE from Crédit Mutuel Arkéa
on 2 April 2013. BPE has a robust asset management
platform and a range of financial products and services
combining loan and savings management offerings. With
this acquisition, La Banque Postale reinforced its service
offering to its high net-worth customers by proposing a
comprehensive range of products and services adapted to
their needs, from the simplest to the most complex. BPE
has brought almost 60,000 high net-worth customers to
La Banque Postale via this acquisition.
BPE is supported by a national network of 33 branch
offices established in major French cities, including
10 in the Greater Paris region, as well as one regional
office and three wealth management offices in Paris,
Aix-en-Provence and Lyon. Covering the entire country,
these branches and offices form a cross-section of
expertise hubs or local service platforms at the service of
La Banque Postale and its customers.
Finally, the wholly-owned subsidiary, La Banque Postale
Immobilier Conseil, proposes a real estate management to
complete the range of products and services to La Banque
Postale's high net-worth customers.
Corporate customers
La Banque Postale has an offering of credit solutions for the
complete range of legal entities.
La Banque Postale had 435,000 legal entity customers at the
end of 2013, from large corporations to small businesses
and the self-employed, and from small associations to big
housing associations who now benefit from an enlarged
offering: accounts, means of payment, investments, advice,
financing, insurance.
Rolled out in 2009 in metropolitan France, La Banque
Postale has established “Espaces Entreprises” (Business
Areas), which are fundamentally business centres designed
to support customers with professional advice. In addition to
these business areas, distributing financing offers to legal
entities can also be carried out through a multi-channel
agency in charge of guiding professionals and small
businesses and to begin loan file inquiries. Corporate
customers can also contact advisors in post offices to be
put in contact with the Multi-channel Agency.
Marketing the first financing offers to legal entity customers
(equipment leasing) began at the end of 2011, and for social
economy customers (advances on subsidies, authorised
overdrafts) at the beginning of 2012.
La Banque Postale has been offering financial leases and
lease purchase ranges to all its legal entity customers since
2012. The finance leasing offering has been available since
July 2012.
Furthermore, in 2013 La Banque Postale decided to
introduce a new factoring offering, through "Factor", a
factoring company that completes the range of financing
products destined for legal entities.
La Banque Postale also proposes support to customers in
the following four service areas:
fund flow management: La Banque Postale positions
itself as a specialist in handling substantial fund flows
either with respect to inflows (i.e. bank transfers, direct
debits or international money orders) or cash payments
(i.e. bank transfers and cheque payments);
cash management: the range of collective investments
(UCITS) offered by La Banque Postale is being expanded,
covering short term investment needs. The range is
designed to respond to customer demand and makes
it possible to address the specific needs of selected
customers, namely housing associations. Lastly,
La Banque Postale also offers tailored solutions to
its large corporate customers, in particular via term
deposits and issues of negotiable certificates of deposit.
This offering accounted for €1.7 billion in outstanding
deposits as at the end of 2013;
means of payment: the Visa Business card, reserved
for professionals, associations and corporations,
allows in particular for easier spending management
and better separation of personal and professional
expenses. In terms of investments, La Banque Postale
is also providing customers with an optional treasury
management system;
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Overview of business activities Presentation of business activities 5
employee savings financial engineering solutions: this
activity is focused on putting in place employee savings
plans using specific products for each customer
segment. La Banque Postale now covers the full range of
financial engineering products for employees (luncheon
vouchers, CESUs [special employer cheque books], etc.).
Outstanding loans to associations and legal entities (€1.7
billion) were up 171% in relation to 2012.
La Banque Postale: a leader of the non-profit association market
Furthermore, La Banque Postale is one of the major players
in the non-profit market, with 300,000 small non-profit
organizations as customers, including 7,700 manager
associations, representing one third of the market.
La Banque Postale made available a community site
dedicated to non-profit organizations, www.assoandco.fr,
which takes a census of all the necessary information an
association needs on a daily basis and is designed to be an
exchange site and service platform intended for everyone.
Since the end of 2013, La Banque Postale has proposed
to its management association customers the possibility
to apply for real estate loans. This type of financing, which
was lacking in the product range, now allows management
associations to acquire new premises, renovate old
premises and carry out their building project.
La Banque Postale recently completed its offering for
associations and professionals by also launching dedicated
insurance products:
online property and casualty insurance products
for associations providing a range of basic coverage
solutions (civil liability for association related activities,
criminal defence and remedy, legal protection) as well
as optional coverage solutions adapted to the profile of
the association (occupying owner civil liability, personal
director's liability, personal accident, owner-occupier
property damage);
online property and casualty insurance dedicated to
office work operations and convenience stores.
In 2014, La Banque Postale will pursue this major
development priority, focusing notably on the social welfare
and healthcare sector.
Local authorities customers
La Banque Postale has been authorized to grant loans to
the local public sector since 25 May 2012. In this context, it
has developed a new local financing model through setting
up La Banque Postale Collectivités Locales, in which
La Banque Postale and Caisse des Dépôts have respective
interests of 65% and 35%, on 27 March 2013.
This new subsidiary provides simple and understandable
liquidity-backed products for customers, granted as part
of a transparent rate policy and a responsible approach to
advice and risk.
In order to respond to local authorities' short-term
financing needs, since June 2012, La Banque Postale has
offered a treasury line of credit usable by drawdowns (for a
maximum of 364 days).
La Banque Postale has also proposed since November 2012
a medium-long-term credit offering, enabling municipalities
to manage their investment projects by means of fixed or
floating rate loans over terms of up to 15 years.
La Banque Postale also enables municipalities to invest
their surplus cash through a complete range of collective
investment vehicles including those adapted to the specific
regulatory constraints imposed on municipalities.
Outstanding local authority loan balances amounted to
€2.2 billion at the end of 2013.
5.1.3.3.2 Insurance
The Insurance business line covers nearly 560 employees
who work in product development and customer relations.
It is present in both personal insurance (life and retirement
insurance, personal risk and health) and asset and liability
insurance (means of payment, home, auto, legal protection).
It is intended for private individuals, professionals and
organizations.
Life insurance (CNP Assurances)
Le Groupe La Banque Postale is a shareholder (at
20.15%) and markets on behalf of CNP Assurances Group
life insurance and capitalisation products. In 2013, it
represented 41.5% of the CNP Assurances Group's revenue.
These CNP products constitute the majority of those offered
by La Banque Postale for life insurance.
The offer is divided around the following contracts, in the
process of being marketed:
"Vivaccio" for retail customers; starting at €75, this life
insurance policy is designed to meet the specific needs
of customers at any age at the time of inception that
subsequently evolves with them;
"Cachemirea", a multi-fund and multi-manager policy,
for high net-worth customers;
"Satinium", a high-end discretionary management policy;
"Toscane Vie", a policy with a loyalty guarantee for
customers who pay French Wealth Tax.
Life insurance also consists of a complete range for
retirement preparation (Solésio range).
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Overview of business activities Presentation of business activities5
Contingency insurance (La Banque Postale Prévoyance)
La Banque Postale Prévoyance, set up in 1998 (under the
name Assurposte) is equally owned by La Banque Postale
and CNP Assurances. Its primary business activity is
developing individual and group personal risk products
adapted to La Banque Postale’s customers' needs.
La Banque Postale Prévoyance has developed a
comprehensive range of individual personal-risk products
providing all the coverage needed to face the vagaries of life
(death, long-term care, funeral, accident coverage, etc.) and
offers a wide range of services above and beyond financial
services.
The quality of its personal risk range was once again
recognised by the profession in 2013. In effect, the entire
range was distinguished by Les Dossiers de l’épargne:
Prévialys Accidents de la Vie received an Excellence Award
(the policy has received an award every year since 2004).
The commercial success of the range was confirmed in
2013, following additions to the cover in late 2012, including
Avisys Protection Famille (a policy that has received an
award every year since 2004), Protectys Autonomie (a
policy that has received an award every year since 2005),
Résolys Obsèques Prestations (a policy that has received
an award every year since 2004), and Sérénia (a policy
that was rewarded once again last year, as in 2012, after
only one year of marketing). Finally, the Résolys Obsèques
Financement, a burial insurance policy, has received the
"Avis Positif" distinction.
With more than 425,000 new policies at the end of 2013,
La Banque Postale Prévoyance ranks as the second
largest operator in the French market. Its growth has
also been driven by borrower-insurance policies, which
are subscribed at the time of a financing transaction with
La Banque Postale.
La Banque Postale's portfolio included 2.7 million contracts
at the end of 2013.
Health care (La Banque Postale Assurance Santé)
In 2010, to develop the health insurance activity and
capitalise on its growth potential, La Banque Postale
established a company in partnership with La Mutuelle
Générale, La Banque Postale Assurance Santé, in which it
holds a 65% interest.
La Banque Postale Assurance Santé has therefore been
providing a complementary health insurance offering
that is in line with its values and strategic choices since
December 2011. Customers now have access to the offering
of La Banque Postale both through face-to-face and online
channels, including through the 420 development officers of
the financial centres, and since mid-2013, at all post offices
following the important training plan for 17,000 employees
(advisors in post offices and financial centres).
The roll-out of health insurance products in La Banque
Postale's network is a true success, resulting in a sale of
more than 54,000 policies in 2013 with a net acceleration
since September.
The standard offer is made up of three targeted formulas,
each comprised of four levels of guarantees that each
customer can subscribe to according to his/her needs:
"Formule Solo" for people insuring themselves only, up
to 55 years of age;
"Formule Familles" for couples or families with children;
"Formule Senior" for people over 55.
In 2013, Senior and Solo received the "Avis Positif" distinction
granted by Les Dossiers de l’épargne.
In 2014, new products and services will be added to
complete the traditional supplementary health insurance
offering and provide an expanded range in response to the
emergence of new needs.
Property and liability insurance
La Banque Postale proposes a range of personal line
property and casualty insurance products through its
subsidiary, La Banque Postale Assurances IARD (65%-held
by La Banque Postale and 35%-held by Groupama). The
first offerings were organised around automobile, multi-
risk household and legal protection insurance distributed
through remote (phone and online) channels starting in
December 2010, and gradually extended thereafter to all
other distribution channels.
This multi-channel approach (phone, online and post
offices) allows customers to choose the type of relation
they prefer.
At the end of December 2013, La Banque Postale IARD's
portfolio exceeded the threshold of 863,000 policies.
Following the Argus d'or de l'Assurance award in April
2013, La Banque Postale Assurances IARD was granted
three new awards for providing an option for insureds
to use the Digishoot application for auto or household
insurance claims, in partnership with Digiposte. Awarded by
insurance industry professionals, these awards recognise
the continuing search for simple and innovative solutions
destined to facilitate our customers' life.
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La Banque Postale Assurances IARD also won the Palme
de l’innovation award in 2013 in the "Customer Experience"
category in the Palmes de la relation client series, as well as
the Top Com d’argent award in the Digital category.
Furthermore, La Banque Postale Conseil en Assurances,
a wholly-owned subsidiary of La Banque Postale, designs
and proposes "turnkey" insurance, assistance and service
offerings for the different divisions and subsidiaries of
La Banque Postale and, more generally, Le Groupe La Poste
as a whole.
These offerings in particular relate to current accounts
(insurance for Alliatys means of payment subscribed by
6.7 million customers), bank cards (7.47 million), telephone
devices, savings products, credit products of all kinds for
retail customers as well as professionals, associations,
companies and social housing operators.
5.1.3.3.3 Asset Management
The Asset Management activities cover the Group's third-
party asset management companies and propose in this
way expertise that allows La Banque Postale to offer private
individual and legal entity customers a complete range of
savings and investment products covering both traditional
financial markets in addition to specific asset classes.
The third-party asset management subsidiaries have
a combined staff of 323 people working on product
development and customer relations.
At the end of 2013, assets under management amounted to
€149 billion, up 4% from 2012.
Since August 2013, when La Banque Postale Gestion Privée
signed them, all the asset management subsidiaries have
now formally committed to comply with Responsible
Investment Principles, demonstrating their determination
to implement a responsible management process in
accordance with the Group's values. In the investment area,
an SRI Investment Selection Committee, which includes
the subsidiaries involved, enables the sharing of reports,
thereby providing pooled research to the management
companies.
Multi-expertise investments (La Banque Postale Asset Management)
La Banque Postale Asset Management (LBPAM), is the fifth
largest French asset management company in terms of
assets under management and a wholly-owned subsidiary,
which specializes in the management of benchmarked
UCITS within the unit and operates on the main financial
markets. LBPAM has developed a full range of UCITS, in
order to meet the requirements of retail banking customers,
and a range that is more specifically intended for legal
entity customers (mutual companies, pension funds and
insurance companies, etc.). In fact, LBPAM was one of the
first management companies to launch a debt fund with
infrastructure and real estate sub-funds. As a recognized
operator in the debt and insurance management sector,
LBPAM takes part in a large number of institutional tenders
for delegated or discretionary management services
Finally, La Banque Postale proposes a large range of
SRI UCITS destined for both private individuals and legal
entities. The generalisation of the integration of ESG criteria
in all asset classes under management has furthermore
been continued in 2013.
La Banque Postale also operates in the employee savings
sector through the open-ended or dedicated employee
savings vehicle (FCPE) managed by LBPAM.
LBPAM also manages a range of savings products that
covers the main asset classes, including:
UCITS euro money market funds to manage their cash
assets;
UCITS bond funds invested in government and corporate
bonds. If these UCITS are invested mainly in the euro
zone, the range also includes international bond funds
hedged against exchange rate risks;
diversified UCITS funds to take advantage of asset
allocations strategies of experts within the framework
of benchmarked management or flexible management
seeking to achieve absolute performance. The range
of diversified funds includes UCITS invested directly in
securities, in "in-house" UCITS or in multi-management
funds, through specialists selecting external funds;
UCITS equity funds covering all major geographic
regions: France, Euro, Europe, North America, Asia
Pacific;
thematic non-listed REIT covering a specific sector:
healthcare, financials, or telecoms;
debt funds with infrastructure and real estate sub-funds;
fully or partially capital guaranteed structured UCITS
managed by La Banque Postale Structured Asset
Management, a 99.99%-held subsidiary of LBPAM.
Discretionary management (La Banque Postale Gestion Privée)
To better serve the Group's high net-worth customers,
La Banque Postale proposes a range of asset management
services adapted to different profiles from the most cautious
to the most dynamic, and that may be exercised within
the framework of life insurance, equity savings plans
or securities accounts. These discretionary mandates,
managed by La Banque Postale Gestion Privée (LBPGP),
provide access to the expertise of financial market
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Overview of business activities Presentation of business activities5
professionals. These professionals select investment
vehicles from a large choice of financial products: direct
purchases of equities or through UCITS managed by Group
management companies or top-tier external management
companies.
Equity management (Tocqueville Finance)
La Banque Postale also proposes to its customers UCITS
of Tocqueville Finance, a 92.5%-held subsidiary. This
subsidiary is very well-established with financial investment
advisors, independent asset management advisors,
private and institutional banks. Specialised in equities
management, it invests with the objective of supporting the
development of companies over the long term by applying
a conviction-driven management approach, independently
of market indexes.
In conjunction with this offering, Tocqueville Finance also
manages discretionary mandates for a specific high net-
worth customer segment that does not necessarily have
banking relations with La Banque Postale.
Open-ended property funds (OPCI) and real estate investment partnerships (SPCI)—Ciloger
La Banque Postale offers its customer diversification or
tax optimization solutions via the range of OPCI and SCPI
managed by Ciloger, a subsidiary in which La Banque
Postale, Nexity and CNP Assurance have respective
interests of 45%, 45% and 10%. It specifically distributed
the first “Duflot” SCPI in 2013.
There are also products destined for legal entities:
companies, institutions (mutual companies, pension funds
and insurance companies, etc.), by offering them a range
of real estate investment mutual funds with simplified
operating rules (OPCI RFA) in order to meet these
customers’ requirements and constraints.
Private Equity (XAnge Private Equity)
In addition, La Banque Postale proposes a range of
mutual funds providing opportunities to invest in fast-
growing innovative companies, notably in the technology
and information sectors. These funds are managed by
the subsidiary XAnge Private Equity, 90%-held by SF2-
La Banque Postale. With branches in Paris, Munich and
Lyon, it has a team of 14 experienced investors, responsible
for monitoring and directing their 65 equity investments.
XAnge Private Equity continued in 2013 its strategy of
acquiring new institutional customers through two new
funds: for FCPR XAnge Capital 2 (a venture capital fund) and
also for FCPR XPansion 2 (specialised in growth capital).
5.1.3.4 Strategy and outlook
5.1.3.4.1 La Banque Postale: a young
full-service bank operating in an important
competitive environment
The progress made over the past few years by La Banque
Postale has made it a major player in the French retail
banking market, often ranked among the leading banks in
terms of customer satisfaction. La Banque Postale has also
been able to reconcile its commercial development with its
banking accessibility mission, in particular by means of
the support provided to financially insecure customers.
This success has been achieved in a highly competitive
market that includes very powerful operators. Through its
specific characteristics and unique business model original,
La Banque Postale has been able to establish its position in
this environment and today occupies an important place in
the French banking landscape.
Beyond these successes, La Banque Postale also has
significant growth potential in terms of future customer
penetration and the acquisition of new customer segments
including private individuals, companies and the local public
sector.
Turning this potential into a reality remains a challenge
for all at La Banque Postale that must be combined with
ongoing efforts to control operating costs, a prerequisite
for achieving a high level of competitiveness in line with
the bank's strategic objectives. Over the 2005-2013 period,
La Banque Postale saw the number of active customers rise
by nearly 15% to 10.7 million by the end of 2013, in line with
targets. This development was accompanied by significant
growth in the real estate loan sector, where the loan balance
over the period between 2008 and 2013 increased by 100%,
reaching a market share of 5.3% in terms of loan balances
in 2013.
La Banque Postale, over the recent period, has made
unprecedented enhancements to its offerings for all
customer segments: consumer credit (La Banque Postale
Financement), property insurance (La Banque Postale
Assurances IARD), health insurance (La Banque Postale
Assurance-Santé), discretionary asset management
(La Banque Postale Gestion Privée), as well as loans to
legal entities (La Banque Postale Crédit Entreprises),
municipal lending (La Banque Postale Collectivités Locales)
and offerings destined for high net-worth customers
(BPE) supported by its important distribution network and
partnerships.
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La Banque Postale has also become a leading banking and
insurance provider, and has recorded ongoing strong growth
in its life insurance assets (life-insurance assets increased
by over 36% between 2007 and 2013), and in the penetration
of personal risk insurance among its customers. It is thus
positioned as the number two French bank insurance
provider in the personal risk business.
La Banque Postale, which has made life insurance one
of its core businesses, relies on its partnership with CNP
Assurances in this area. La Banque Postale currently holds
20.15% of CNP Assurances, France's leading personal
insurer, backed by 150 years of experience, with revenue
of €27.7 billion in 2013. La Banque Postale will play an
active role in renegotiating the commercial agreement and
shareholder agreement that bind it to CNP Assurances,
which are set to expire at the end of 2015.
5.1.3.4.2 Strengthening the Group’s
operations in the retail, corporate and local
authority market
La Banque Postale must respond to the challenges
arising from a constantly changing environment, whether
stemming from the economic and financial context,
customer behaviour patterns, or the competitive French
banking landscape that has significantly refocused on retail
banking.
La Banque Postale will boost its operations on the retail
market via several development priorities:
by offering appropriate solutions to marginalized
customers, and by ensuring the funding of La Banque
Postale's general interest remit;
by rounding out the range offers to high-potential
customers (in banking & insurance, and wealth
management);
by continuing to improve the effectiveness of the Retail
Brand Bank and of the financial centres.
Young customers will specifically be a major and key
development priority for La Banque Postale over the coming
years, as this market offers a high potential and a large
number of growth opportunities. The commercial terms of
the offerings, and customer relations will be the weapons
to attract and retain the loyalty of this demanding customer
base.
The corporate market will also be a priority over the coming
years. It will involve the implementation of structural
projects via a targeted and controlled expansion in the
corporate and not-for-profit organization market.
La Banque Postale wants to offer a new local financing
model, based on simple and understandable products
for customers, liquidity backed and granted as part of a
transparent rate policy and a responsible approach to advice
and risk. This model led to the creation on 27 March 2013
of La Banque Postale Collectivités Locales, 65%-held by
La Banque Postale and 35%-held by Caisse des Dépôts.
One year after it began granting loans to local authorities,
La Banque Postale has now captured 15% of the market for
this customer segment. Over the coming years, La Banque
Postale will continue and strengthen the initiatives that are
already underway for local authorities, despite a stretched
competitive environment, by broadening its offering together
with Caisse des Dépôts.
5.1.3.4.3 Developing the "digital" bank
The users of La Banque Postale's online services are a
strategic customer base. 41% of active customers currently
use the online services, and over 80% of the service users
are customers for whom La Banque Postale is their "Main
Bank".
The development priorities for this "digital" strategy are as
follows:
making digital technologies serve commercial
development;
simplifying the interoperability between the channels;
adding the know-how of Le Groupe La Poste to the online
services;
developing the attractiveness, visibility and prioritization
of the "La Banque Postale" brand;
developing new ways of running a bank by taking
advantage of digital ecosystems;
Developing the digital bank is therefore a major requirement
and challenge for the coming years, and La Banque Postale
has to be at the cutting-edge of market developments.
5.1.3.4.4 Maintaining a strong relationship
between La Banque Postale and Le Groupe
La Poste
To support this strong relationship, Le Groupe La Poste and
La Banque Postale maintain strong relations. In November
2013, the Board of Directors of Le Groupe La Poste
authorized an increase of over €1 billion in La Banque
Postale's prudential equity capital.
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This strengthening consists in a capital increase via the
contribution of La Banque Postale’s head office (1), valued
at €228 million, together with a hybrid subordinated Tier 1
issue amounting to €800 million, which was entirely
subscribed by Le Groupe La Poste. The principle of both
transactions had been decided at La Poste Board of
Directors’ meeting last 4 July.
Through this contribution, Le Groupe La Poste has
strengthened the commercial development of its bank and
its multi-business approach. This transaction represents
a major step towards consolidating the Bank's financial
structure and solvency, in accordance with the strategy
aimed at developing its lending businesses.
Over the coming years, the Bank and La Poste will
continue to maintain a strong and close relationship, in
order to create optimal synergies and support the Group's
development.
5.1.3.4.5 A new development strategy:
the professional market
In 2014 and over the coming years, La Banque Postale will
increase its operations with the professional customer
base by rolling out a sales force in post offices throughout
France.
The professional market is currently dominated by leading
banking groups, so La Banque Postale will position itself as
a challenger. This market represents a local customer base
that uses the post offices and is well represented among the
Group’s business assets.
This means that professionals represent an area with strong
growth potential for La Banque Postale. In this context,
dedicated sales persons will be sent to large post offices in
2014. The roll-out of this model will enable improvements
in the customer contact area, and will enable advisors to
be closer to their customers and to capitalize on the post
offices' local advantage.
5.1.4 La Poste Retail Brand: the distribution of products and services of the Group’s Business Lines to private individuals and professionals
5.1.4.1 La Poste Retail Brand: the strength of a multi-activity business model
2013 2012 2013/2012 change
(€ million) amount %
Revenue 4,230 4,231 -1 0.0%
Operating expenses (4,196) (4,215) +19 -0.4%
Operating profit 34 16 +17 n.s.
As the distribution network of Le Groupe La Poste Business
Lines for retail and professional customers (1), La Poste
Retail Brand represents the Group’s multi-business
operating structure. It is both a symbol of local postal
coverage and a point of contact between the public and
La Poste’s Business Lines.
Its accessibility represents one of the network’s strengths:
96% of the French population live less than five km away
from a postal service outlet. Its founding mission is to
welcome, serve and advise the customers of La Poste and
of its Business Lines, with three specific goals:
ensure the practical implementation of three of the four
public service missions assigned to La Poste (Universal
Service, regional planning and development, and banking
accessibility—see Chapter 5, Section 5.3);
(1) "Professionals" refers to any person supplying goods or services (e.g. industrial, commercial, cottage industry, freelance, agricultural or others). This
customer base is primarily comprised of local shopkeepers, small traders, freelancers, etc. who are offered cards that give them special access to
La Poste Retail Brand services.
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implement the commercial policies of the three
Le Groupe La Poste Business Lines;
achieve a value creating level of performance for the
Group and its Business Lines, by means of multi-channel
development and process optimisation.
5.1.4.1.1 Original features
A network indispensable both for the functioning of the Group and French society
La Poste Retail Brand is a multi-business and multi-
channel distribution network vital to the Group and to
French society's functioning. In 2013, 85% of the French
population stated that they had visited their post office
at least once to carry out postal or banking transactions,
either with an agent or via an automated postal service
machine or ATM (1).
An original model in Europe
The Retail Brand offers a multi-activity business model that
is unique in Europe. The models employed in most other
European countries have typically resulted in downsizing
the post office network.
A multi-business strategic positioning
The Retail Brand model allows the Business Lines to
share the cost of a commercial organization that offers
accessibility to a vast number of people, while ensuring
the sustainability of a network that is both extensive and
efficient. In addition, the resulting environment favours the
mutual development of their activities.
The Retail Brand’s multi-business strategic positioning is
designed to ensure that the distribution network remains
financially sound.
La Poste Retail Brand accounted for 18.0% of the parent's
Mail revenue, 27.4% of ColiPoste’s revenue, 9.7% of
Chronopost’s revenue, and for 96.7% of La Poste Mobile’s
sales. It held 6.9 million banking advice appointments, while
representing 69.1% of consumer loans, 89.3% of home
loans, and 100% of net collection for private individuals at
31 December 2013.
Relations between the Retail Brand and the Business
Lines are set out in a series of contractual provisions
governing relations within Le Groupe La Poste with respect
to the services to be provided and the related corporate
governance arrangements. As part of this, the Retail Brand
invoices its services to the Business Lines and Group
subsidiaries (including all or part of certain services), based
on the cost of the resources employed.
5.1.4.1.2 Network structure
La Poste has 17,081 public outlets throughout France,
57.9% of which are in rural municipalities (2).
Postal service coverage meets the populat ion’s
requirements, and La Poste consults elected officials within
the framework of the national and departmental governance
bodies set up through a local postal coverage agreement. A
new postal coverage agreement for the period between 2014
and 2016 was signed on 16 January 2014 by La Poste, the
French government, and the French Mayors’ Association.
Types of public outlets
To successfully change its local postal coverage and
continually adapt its structure to its customers’ lifestyles,
the Retail Brand has gradually built up and expanded
a network comprising two types of public outlets: firstly,
directly-managed post offices and, secondly, retail outlets
managed in partnership.
In each region, the post offices ensure access to the full
range of products and services. Partnerships are entered
into with the agreement of local elected representatives
and consist of entrusting the provision of its most common
services to third-party public authorities (municipalities or
groupings), in the case of Local Postal Agencies, or private
operators (shopkeepers), in the case of Relais Poste outlets.
Furthermore, retail customers have access to postal
services at over 24,500 newsagents and large retailers
(5,000 stores), which offer Mail products (stamps and
stamped envelopes), pre-paid envelopes, and Colissimo
and Chronopost services.
Directly-managed post offices
There were 9,692 post offices at 31 December 2013; these
are the physical showcase for Le Groupe La Poste's
integrated services, and are intended for all retail and
professional segments. Marketing all services, they propose
the broadest range of Group products and serve as support
points for the development of new services. They offer:
Banking services: standard counter transactions,
personalised banking advice, property and casualty
insurance products, consumer credit, etc.;
Mail services: purchase of pre-paid envelopes, delivery of
Green Mail, postage, mail pick-up, mail forwarding, etc.;
Parcels services: sale, drop-off and pick-up, etc.;
Telephone services.
(1) Customer satisfaction survey: BVA phone survey and IPSOS post office exit interviews.(1) Customer satisfaction survey: BVA phone survey and IPSOS post office exit interviews.
(2) As defined by INSEE 1999
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The post offices are the main point of contact for local
partners: they provide them with training and information
as well as coordination and support.
To better adapt to customer needs and transition from
a uniform counter-based standard of service to a multi-
channel model based on customised service, the Retail
Brand put in place a major plan to transform post offices
into welcoming, modern, customer-oriented service areas.
The post-office "Customer Service Area" concept has been
in use since 2009. The priority roll-out of this concept began
in 2009 with the 1,000 largest post offices: 1,659 post offices
had adopted this format at the end of 2013 (1,472 at the
end of 2012). This Customer Service Area format offers the
customer a unified commercial area combining:
a banking area with the banking desk for drop-
in transactions and financial advisor offices for
appointments;
a sales area with ATMs, self-service products, the
professional welcome desk, the mail drop-off/pick-up
desk, the payment desk, the traditional counter, etc.
A colour coded design makes it possible to distinguish the
banking area (blue) from the postal service area (yellow for
mail and parcel service areas).
The modernisation of offices seeks to further increase
customer satisfaction, improve sales performances and
reduce one of the principal sources of customer irritation:
the waiting experience and how it is perceived. The
average time taken across all offices to gain access to a
counter (all transactions) was reduced from seven minutes
and 19 seconds in November 2009 to four minutes and
25 seconds in 2013. Meanwhile, the average time taken
to gain access to services (all counter and non-counter
transactions) amounted to three minutes and 58 seconds
in 2013.
Overall customer satisfaction remained stable in 2013
at a level that was very satisfactory compared to other
distribution networks. Based on surveys conducted over
the last six months, nearly nine customers out of 10 (89%)
state that they are satisfied with their post office. This
score increases to 95% when customers are surveyed
when leaving post offices, immediately following their
experience (1).
Retail outlets managed in partnership
Retail outlets managed in partnership are made up of Local
Postal Agencies (APC) and Relais Poste outlets (RP).
The number of public outlets under partnership increased
by 138 in 2013, which brought the number of partnerships
to 7,360 (2) at 31 December 2013, as part of a network that
includes 17,052 public outlets (3) serving customers.
These partnerships received a very warm welcome due
in particular to the longer opening hours. In addition, the
RPs, like the APCs, help deepen the relationship with the
inhabitants of small municipalities, retain the last shop and
the attractiveness of the municipality for new inhabitants.
In March 2012, the results of the National Partnership
Survey (4) showed that these partnerships are a "good thing"
for 93% of the population, 83% of elected officials and 86%
of retailers. And for more than 90% of elected officials, the
presence of the APC and RP contribute to maintaining the
public service in rural municipalities. APC and RP are very
well known among the population (79%). 89% of elected
officials and 93% of retailers would recommend their
peers to welcome a partnership. In terms of satisfaction,
partnerships satisfy the different parties involved (91%).
Local Postal Agencies
The 5,326 Local Postal Agencies (at the end of 2013) offer
almost all the services provided by post offices, including
mail (postage, registered letters, and mail holding,
etc.), and parcels (sale of packaging materials, drop-
off, and collection, etc.), as well as a stop-gap financial
troubleshooting offering (cash withdrawals of up to €350
per week for postal bank accounts and Livret A passbook
savings accounts, and payment of postal money orders,
up to a limit of €350 per transaction). The APCs are
compensated for the resources employed.
The APCs are managed by territorial staff, employed by the
municipality or grouping of municipalities that have signed
the agreement with La Poste. In this respect, they come
under local public sector management rules. La Poste’s
contact is the Mayor (or the President of the grouping of
municipalities) who represents the municipality and acts
as employer.
(1) Customer satisfaction survey: BVA phone survey and Ipsos post office exit interviews.
(2) Excluding the 14 Postal Agencies in Andorra and Monaco, but including two other partnerships (Postal Agencies not included under the agreement,
and others).
(3) Excluding the 29 speciality public outlets.
(4) This barometer is based on a TNS Sofres study conducted on a representative sample of 800 inhabitants of communities with an APC or an RP, 500 city
Mayors and 150 retailers managing an RP.
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The framework agreement covering Local Postal
Agencies (APCs) between La Poste and the French Mayors
Association (AMF) sets out the legal framework under which
municipalities and groupings of municipalities can take on
the local postal coverage public service mission.
Relais Poste outlets
La Poste enters into an agreement with a shopkeeper
or trader to provide, in its name and on its behalf, postal
services and basic financial troubleshooting services
(cash withdrawals of up to €150 per week by holders of
CCP (postal bank accounts) and Livret A passbook savings
accounts) in consideration for which they receive a fixed fee
and transaction commissions on business activities. There
were 2,032 Relais Poste outlets at the end of 2013.
The shopkeepers and traders responsible for Relais
Poste outlets are chosen in consultation with the Mayor.
They are selected according to practical criteria which
will facilitate the implementation of the project (hours,
image, layout, location, etc.). They can be independent or
tied to a distribution network, even franchises of a brand.
The Relais Poste outlet partnership format, launched
in 2003, was reviewed in June 2005 with the Assembly
of French Chambers of Commerce and Industry, the
Permanent Assembly of Chambers of Trades (Assemblée
permanente des Chambres de Metiers) and the union of
French tobacconists (Confédération des débitants de tabac
de France).
Geographic accessibility of public outlets
La Poste Retail Brand operates through 6,941 public outlets
in urban areas (1), 5,956 of these outlets are post offices and
985 are Local Postal Agency or Relais Poste outlets. 870 post
offices are located in underprivileged urban areas or serve
one: these offices, 270 of which rank among the 1,000 largest
post offices, account for 16.3% of business volumes.
The Retail Brand operates through 10,111 public outlets
(3,736 post offices and 6,375 partnerships) in rural
areas (2) (as defined by INSEE—French National Institute of
Economic and Statistical Information). The number of public
outlets in rural revitalization areas or mountain areas is
5,215 (1,858 post offices and 3,357 partnerships).
Relational accessibility
In addition to the physical network and its accessibility in
geographic terms, the friendly nature of its staff who are
in direct contact with customers on an ongoing basis also
represents the strength of the Retail Brand’s network.
Postal workers are committed to welcoming customers and
providing them with a high quality of service every day and
are actively involved in implementing change.
La Poste Retail Brand employs almost 56,000 staff, over
85% of whom work in post offices. Counter clerks account
for around two-thirds of those agents, while banking
advisors account for almost 20%.
The three main functions are:
counter clerks: the customer’s first point of contact, they
are responsible for the friendliness of the welcome and
for providing customers with the products and services
that best suit them from the range offered by the Retail
Brand. In order to ensure customer satisfaction, the
collective skill-sets of a team of counter clerks are built
around flexibility and specialisation of some (dealing with
professional customers, banking products and services,
mobile telephone services offer, etc.);
banking advisors: responsible for the development of a
long-term customer relationship within a multi-channel
structure, they provide customers with personalised
advice, and offer La Banque Postale products and
services that truly meet their needs. The various advisor
profiles make it possible to cover the particular needs of
all La Banque Postale’s existing and potential customer
segments. In response to changes in the retail banking
sector, the Retail Brand Financial Services Department
and Executive Management have decided to step up
commercial development and to implement a distribution
strategy that adapts to new customer behaviours. A staff
agreement dated 5 September 2011 falls within this
framework and focuses on the work environment and
career development;
branch manager: responsible for a post office or a
network of public outlets (i.e. post offices, Local Postal
Agencies and Relais Poste outlets), they manage
their team of counter clerks, bank advisors and local
supervisors in such a way so as to ensure customer
satisfaction, quality of service, sales performance,
financial performance and risk control.
Physical access
The Group has a plan for making its premises open to the
public, including post offices, accessible: at the end of 2013,
77% of directly-owned locations and 49% of leased locations
were accessible to persons with reduced mobility (PRM).
La Poste Retail Brand has incorporated CSR concerns
(accessibility, eco-designed materials, lowering the energy
consumption of lighting and IT equipment, and providing
access to everyone) in its initiative to redesign the post office
network.
(1) Excluding French overseas departments.
(2) Including all public outlets in French overseas departments.
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5.1.4.1.5 Strategy and outlook
La Poste Retail Brand is now the largest integrated service
distribution and public service network in France, with over
17,000 outlets spread throughout the country. It is also very
often the only network involved in a business activity in
urban and rural areas from which some business operators
have withdrawn.
Through the commitment of post office staff, the Retail
Brand occupies a critical role as a provider of local services,
notably by implementing three of the four public service
missions assigned by the French government to La Poste
through the Business Contract.
A new strategic project: "Excellence & Development"
Since the environment in which the Retail Brand operates
is undergoing rapid change (evolving expectations and
customer behaviour, the digital revolution, the economic
and financial crisis), in 2013, it decided to accelerate its
transformation. This initiative involves its development
through a new strategic project, "Excellence and
Development" in line with Le Groupe La Poste's strategic
plan. Its objectives are clear: to become the leading local
service network.
Striving for excellence in quality of service and customer relations
Over the past few years, the Retail Brand, which is
bolstered by solid foundations and the service culture of
its employees, has been conducting an initiative aimed at
improving service quality (reception, accessibility, efficiency
of the service, and quality of advice) that now enables it to
benefit from a marked improvement of customer service,
and to aim to satisfy 95% of its customers by 2018.
Simplifying the customer experience and product ranges and developing value-added offerings
The Retail Brand is pursuing the development of service
innovations in synergy with Group Business Lines (Mail,
Parcels, La Banque Postale, Telephone services), seeking
to optimise the potential of each and develop high value-
added offer generating services, by shifting low value-added
activities to automated machines. It maintains a customer-
centric focus to identify changes in their expectations in
terms of services and offerings. Highlighting this approach,
in November 2013, the Retail Brand launched a pilot 3-D
printing service for private individuals and professionals
in three offices in the Paris region. The Retail Brand also
markets the value-added offerings of La Poste Mobile
(quadruple play, packages). Since April 2013, La Poste
Mobile proposes a broadband offering based on the SFR
Internet box and, since September, a new package for less
than €20 including a smartphone.
To address the needs of its customers, the Retail Brand's
plan is that all post office offerings contribute to simplifying
their lives, starting with the number of references in the
product ranges, rendering them more understandable and
easier for post office staff to present. This simplification
requires that certain processes and customer itineraries
be rethought via facilitating service access by expanding the
multi-channel dimension.
Post office retrofitting includes reducing the workload on
counters to allow counter clerks and advisors to focus on
transactions that call on their expertise and enable them to
offer personalised service.
The shortening of lines will be achieved by transferring
basic transactions to alternative self-service channels
(increasing the use of automated postal and banking
machines), modernising stands and self-service sales.
To support its strategy of moving low value-added
transactions to ATMs, the Retail Brand relies on around
20,900 automated machines, including:
5,673 “Mail & Parcels” ATMs (postage and stamp
dispensers);
15,226 banking ATMs (cash dispensers, coin change
machines, cheque deposit boxes, check scanners, and
automated cheque deposit machines).
Adapting the network: differentiating office layouts through customer adaptations and strengthening accessibility
The Retail Brand is adapting its organization to the
new lifestyle and consumer practices of its customers,
particularly professionals. Adapting hours of operation,
diversifying forms of access to products and services,
changes to layouts for rural (Postal Agencies and Relais
Poste outlets) and urban areas, integrating the digital
dimension in offerings and in the use of the network (notably
through Internet with the website www.laposte.fr) are part
of these innovation and adaptation initiatives designed to
strengthen the accessibility of the network.
For La Poste services intended for professionals, access is
facilitated by the establishment of a dedicated area in post
offices, a phone number (3634) and a “my post office” (mon
bureau de poste) website.
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The Retail Brand continues to develop its network of partner
public outlets in order to:
ensure the sustainability of the rural network, within the
framework of a constructive relationship with the local
population and their elected representatives;
cut network operating costs by transforming under-used
post offices into Local Postal Agencies or Relais Poste
outlets;
play a part in providing services that are high-quality,
accessible and tailored to the location and customer
lifestyles.
The Charter on local dialogue provides a clear framework
for consultations on restructuring local postal coverage.
New post office layouts, adapted to the needs of customer
segments, will contribute to increasing the commercial
attractiveness of the network. This objective remains
consistent with transformations already in progress. The
brick-and-mortar network will also be supplemented
by digital and remote channels, via which an increasing
number of transactions will be generated and carried out.
Within Le Groupe La Poste, the Retail Brand is getting ready
to develop its multi-channel dimension necessary to meet
its strategic objectives.
Finally, the evolution of the network depends on the
affirmation of its banking dimension. In this way, the counter
clerk becomes a full-fledged contributor to commercial
banking relations. After the customer welcoming process
and quality of service, integrating counter clerks into the
banking process helps reinforce synergies between advisory
and counter service functions. In this way, the counter clerk
position is enriched by developing accessibility to offerings
and banking services while maintaining a local banking
service in the offices that do not have advisors. This trend
makes it possible to handle all customer requests thanks to
the modernisation of tools made available to staff.
La Banque Postale and the Retail Brand have also decided
to make organizational changes in 2013. Accordingly, the
25 regional commercial banking directors responsible for
coordinating commercial banking activities, now report to
Executive Directors of the Retail Brand. The objective of this
new organization is to shorten distances between teams to
accelerate commercial development.
5.1.4.2 La Poste Mobile
5.1.4.2.1 General information
La Poste, which for the last ten years has proposed a pre-
paid mobile telephone services offer in its post offices, has
expanded this offering to supplementary products and
services.
La Poste Telecom, a joint venture 51% owned by Le Groupe
La Poste and 49% by the operator SFR, was therefore
launched in 2011 under the brand La Poste Mobile. This
constitutes what is referred to as a virtual mobile operator
or MVNO (Mobile Virtual Network Operator): not having
its own network, it uses the network of the host operator,
SFR (see Section 5.3.1.4). SFR contributes its knowledge
in exchange for access to the Retail Brand’s distribution
network.
The development of a mobile telephone services business
under the La Poste Mobile brand falls within the scope
of initiatives seeking to find additional revenue streams
in markets offering potential synergies with the Group’s
traditional Business Lines.
Since May 2011, La Poste Mobile offers a complete mobile
telephone services range, SIM-only or contract plans, with
or without mobile phones and prepaid plans.
5.1.4.2.2 Market and offers
The mobile telephone services market in France
The mobile telephone services market had 70 million active
customers as at the third quarter of 2013, i.e. a penetration
rate of 110.8% of the population (1). The market is growing,
with a customer base increasing by close to 3,632,000
customers as at the third quarter of 2013, i.e. a net growth
of +5.5% year on year.
With close to 7.9 million subscribers as at the third quarter
of 2013, the MVNO market share reached 10.8% in the
overall market (13% in the residential market).
(1) Source Arcep: Observatory of electronic communications markets - third quarter 2013 and 2012.
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Market trends
Several factors are causing the mobile telephone services
market to rapidly change:
The first involves the change in usage. The smartphone
has become a full-fledged multimedia hub for personal
communications. Boosted by broadband mobile, in
addition to handling “conventional” telephone calls/
SMS/MMS, it offers access to emails, the Internet, social
networks, music, videos, games while offering a high
degree of personalisation in terms of continuity of use.
The consequence has been the widespread adoption of
“unlimited” voice, data and messaging offers.
The second effect is linked to the significant drop in market
rates triggered by the arrival of France’s fourth operator in
2012. In 2013, all market players ended up adjusting their
prices as a result.
The third factor concerns the success of SIM-only
contracts (without phones) and pay-as-you-go plans. The
subscription of a contract plan is increasingly independent
of the purchase of a phone. These SIM-only contracts,
which are easy to market through distance selling, have
been accompanied by an evolution in distribution channels.
Direct marketing on the web has increased in consequence.
This trend has been accompanied by the development of
low-cost offerings (less than five euros per month).
Lastly, the first 4G offerings were launched at the end
of 2013.
La Poste Mobile offering
The distinguishing feature of La Poste Mobile is its
extremely vast territorial network. La Poste Mobile is
capitalising on a positioning based on customer proximity,
via a physical network of close to 10,000 post offices. All
offerings and mobile devices are accessible for customers
in all post offices, either immediately or in under 48 hours
with direct delivery to their home. In addition to the post
offices, products and services are also offered on the
Internet at www.lapostemobile.fr and by phone (multi-
channel distribution).
In 2013, in order to adapt to market changes, the range
of plans was renewed and simplified. In March, La Poste
Mobile launched SIM-only pay-as-you-go offering without
a mobile phone at a very competitive price. The entry
level plan for this range was €3.90 per month, including
two hours of calls and unlimited SMS and met with a
very positive response. In September, a new plan for
less than €20 per month offering “unlimited” voice, data
and messaging, including a smartphone, was launched
on the market. This contract plan, which is particularly
competitive, also met with a very positive response.
Since April 2013, La Poste Mobile proposes an ADSL
offering on the SFR modem router units. Discounts are
offered for customers subscribing to both a mobile contract
and ADSL access.
This strategy enabled to service 613,000 new customers in
2013. Net sales (after cancellations) amounted to 299,000.
The customer base grew by 47% to 943,000 customers at
the end of 2013. Revenue for 2013 came to €148 million.
Quality of service and advice remain vital priorities. The post
office-based customer service reached a level of service
quality that is recognised by customers. According to the
surveys conducted among La Poste Mobile customers, 97%
confirmed that they were satisfied or very satisfied with the
advice and service received at the post office and one out of
two have already recommended products and services to
friends and family. Two-thirds of the clients have said that
signing up to a contract or amending an existing contract
required “no effort at all” or “minimal effort”, which testifies
to the constant improvement of processes. La Poste Mobile
is one of the operators that customers trust the most,
ranking a score of 8.2 (1) on this criteria.
Today, the legitimacy of La Poste Mobile’s offerings in a very
competitive market and its ability to meet customer needs
are established, as is the postal workers’ strong support of
this new business activity and their motivation to market
the range.
5.1.4.2.3 Strategy and outlook
The company’s strategy aims to position La Poste Mobile
as the most accessible physical network operator in the
market, while continuing to emphasise the quality of service
rendered and customer proximity. The quality of advice given
by postal workers and after sales service management are
two major advantages for La Poste Mobile, which benefits
from the soundness and trusted name of La Poste and the
quality of the SFR network.
(1) Maxiphone and GN Research studies on behalf of La Poste Mobile (November 2013).
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Likewise, commercial offerings are developed consistently
with the Group’s values: trust, transparency, simplicity,
proximity, accessibility for as many people as possible. La
Poste Mobile offers a range of products and services that
easy to understand, financially attractive, presented and
marketed as part of a close, trusting customer relationship.
Moreover, La Poste Mobile endeavours to facilitate access
to the new digital communication tools for as many people
as possible, which is one of the goals that is very well suited
to the Group’s objectives.
In 2014, La Poste Mobile’s goal is to maintain the
commercial momentum of 2013, both for the mobile
phone and ADSL offerings, or by the 4G range launch, on
January 27.
Lastly, the development of shared offers with other Group
Business Lines will be emphasised in order to maximise
synergies. Collaboration with La Banque Postale will allow
the Group to market La Poste Mobile/ La Banque Postale
offers as well as value-added services. For example, a
mobile phone-based payment offering using near field
communications technology will be rolled out in the first
half of 2014.
5.1.5.1 Introduction
Real estate is a strategic division for Le Groupe La Poste
and is key to the challenges associated with:
the development of the Business Lines’ industrial facilities;
customer reception;
local coverage;
employee working conditions;
the Group’s efforts with respect to responsible development;
economic and financial performance.
A very large property portfolio
Distributed throughout France, the real estate assets of
Le Groupe La Poste are the second largest in the country
after that of the French government. The portfolio has
assets throughout the country, reflecting the public service
mission of Le Groupe La Poste with regard to regional
planning and development (at least 90% of the population
of a department must be within 5 km—20 minutes—from a
public postal services outlet).
Completely atypical, it includes widely diversified assets in
terms of size, type and usage. It consists of large industrial
platforms, small and medium-sized retail spaces and
commercial premises. To illustrate, the smallest asset (the
post office of the Eiffel Tower) has an area of 9 sqm, and
the largest, such as the Industrial Mail Platform (PIC) in
Wissous or the Poste du Louvre, are as large as 39,000 sqm.
The Group's real estate assets have unusual characteristics
in terms of size. Its 6.7 million square meters, 59% of which
is directly owned, correspond to 23,600 leases managed.
Lastly, the specific feature of this complex of 11,847 buildings
resides in the number of people who come through its doors
every year: in 2013, 85% of the French population stated that
they had visited their post office at least once to carry out
postal or banking transactions.
5.1.5 Real estate: Poste Immo, a global real estate partner contributing to the Group’s dynamic
2013 2012 2013/2012 change
(€ million) amount %
Revenue 908 851 +57 +6.7%
External revenue 62 41 +21 +50.2%
Intercompany revenue 845 809 +36 +4.5%
Operating profit 135 109 +26 +24.1%
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Beyond these aspects, the real estate assets of the Group
represent considerable financial stakes. In fact, real estate
is the second largest operating cost item (rent and rental
charges), as well as largest fixed-asset item on the Group's
balance sheet item; this item was valued at €4 billion in the
Group's 2013 accounts.
The real estate division
Le Groupe La Poste’s real estate Department sets out
and oversees the Group’s real estate policy.
Poste Immo, the overall real estate operator, implements
the Group’s real estate policy and takes on the
responsibility of property ownership.
Poste Immo was founded in 2005 as a wholly-owned
Le Groupe La Poste subsidiary to turn real estate into a
value creation tool for the Company and to underpin the
performance of the Business Lines.
Poste Immo performs its business for Group Business
Lines and its network, with the goal of reducing their real
estate costs and supporting them in their development. As
the entity responsible for managing the Group’s real estate
assets, and as a service provider, Poste Immo develops real
estate and financial engineering operations; Poste Immo
enters into strategic alliances with specialised operators to
increase the value of the real estate assets and to develop
the portfolio in order to provide the Business Lines with an
industrial and commercial base adapted to their new uses.
In 2012, Poste Immo and the real estate Department
obtained ISO 9001-2008 certification for all of their
services and business activities. A follow-up ISO 9001 audit
was carried out in the first half of 2013 confirming the
certification received in May 2012.
The real estate division, which has around 1,050 employees
imbued with a dual real estate and postal service culture, is
determinedly positioned as a partner for the Group’s growth
momentum.
5.1.5.2 Business activities
Eager to provide the Business Lines of the Group with the
highest quality support and services on the market, Poste
Immo focuses its comprehensive service offer on four
lines of business: real estate solutions and agency, asset
management, portfolio management, and development
management.
With its 12 regional departments, Poste Immo is active
across the country as close as possible to the Group
Business Lines, elected officials and stakeholders.
“Real estate solutions and Agency” is responsible for
advising the Business Lines with the development of their
real estate site location strategy and for helping them cut
their real estate expenses. Poste Immo is the contact for the
Group’s Business Lines to anticipate their real estate needs
and to assess the upstream potential for the most efficient
use of assets used in both the directly-owned portfolio and
in the rental portfolio. The reduction of under-occupied or
vacant spaces is the key to decreasing real estate costs.
Optimisation of space occupied by La Poste Retail Brand
launched in 2009 made it possible to reclaim 129,000 sqm
for 817 buildings and generated for La Poste Retail Brand
recurrent annual savings for rent and property charges. On
28 June 2013, Poste Immo signed with Mail a mandate for
the optimisation of operating space for a five-year period.
This mandate falls within the scope of the DOTI (1) property
optimisation programme, via which Poste Immo undertakes
to support Mail in negotiating conditions for reclaiming real
estate. Mail's goal is to adapt the area of rented property
to its operating requirements. Finally, the optimisation of
services began in 2005 with the establishment of urban
master plans. In 2011, this was intensified as part of a
Group programme, with the development of master plans
for the real estate Business Lines. This system mainly
concerns spaces occupied by multiple Business Lines. Its
implementation has also been incorporated into a system
established by the Group Executive Committee.
(1) Dossiers d'optimisation territoriale immobilière (property optimization program).
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In 2013, Poste Immo therefore continued to support the
Business Lines and the network in anticipating their real
estate needs and assessing upstream potential for the
most efficient use of surface areas. At the end of 2013,
886,000 sqm had been returned to Poste Immo by the
Business Lines and the network, which has resulted in
a €129 million reduction in the invoice from La Poste's
Business Lines since 2005.
Poste Immo, through its agency, looks to identify the best
solutions in terms of functionality, surface area, rent and
location, while negotiating a non-Group lease when necessary.
Since 2010, lease renegotiations with lessors have resulted in
a significant cost reduction for the Business Lines.
“Property asset management” is responsible for managing
the Group’s real estate assets, combining solutions that
meet the operating requirements of the Business Lines
with the application of industry best practice. It manages
and enhances the value of the directly-owned real estate
portfolios and ensures investment returns in line with
market expectations. It implements its real estate and
financial engineering policy by means of buying and selling
properties, maximising value and joint development. The
creation of a real estate fund (OPCI) with a leading player in
the market illustrates this policy. In 2013, a new industrial
platform of the Mail division in Vitrolles was integrated into
the non-listed REIT (OPCI). 268 asset disposals were carried
out in 2013, including the sale of La Banque Postale’s head
office to its occupant.
“Property management” is responsible for ensuring
that leases are respected and secure, for optimising the
related cash flows, and for ensuring that the contractual
terms and provisions are properly applied. It moreover
guarantees owners a multi-annual major repairs
programme and tenants the use of the leased surface
areas in line with their needs. In 2013, the continuous
worry regarding maintaining the value of the assets led to
2,256 technical upkeep and maintenance operations being
carried out. Large Renovations / Large Maintenance (GRGE)
now systematically include a sustainable development
component. In 2011, the outsourced management of
1.3 million sqm was awarded to four companies as
part of an Outsourced Management Project for Multi-
Occupant Buildings (GEIMO). This is in conjunction with
a security policy and a policy of clarifying landlord-tenant
responsibilities, as well as a policy of controlling operating
expenses. Now that the Outsourced Management Project
for Multi-Occupant Buildings (GEIMO) model has been
operating for two years, the different parties (owners and
tenants) in these buildings have a better understanding of
their responsibilities. Amendments to the existing model
extended to multi-occupant sites are currently under study
for deployment in mid-2014.
Lastly, Poste Immo wanted to improve the property business
activities by setting up procedures, structure and systems
in compliance with market standards. The new guide
regarding the breakdown of owner-renter obligations
has been distributed to the Business Lines. This guide is
intended to define the relationship and responsibilities of
the owner and renter as part of the building operations.
“Project Development” embodies the industrial and
commercial strategies of the Group’s Business Lines
and enhances the value of the directly-owned real estate
portfolio through the deployment of responsible, innovative
and efficient real estate projects. In this context, Poste
Immo has implemented programmes of various sizes and
types, as well as programming, feasibility, and assembly
studies and purchases of services and supplies in order
to reduce costs and delays. 2013 was characterised by the
completion of 2,539 programmes. Poste Immo is supporting
La Poste Retail Brand in the rollout of the Customer Service
Area concept. After transforming the top 1,000 post offices
(in terms of revenue), which was completed in 2011, Poste
Immo is supporting La Poste Retail Brand in the launch
of renovations in another segment: from the 2,000th to
the 4,000th largest post office. This project includes, in
particular, the standardisation of these post offices in terms
of accessibility for people with reduced mobility. 82% of the
wholly-owned buildings open to the general public are now
accessible to persons with reduced mobility.
The cash generated by disposals and the surplus internal
cash have enabled the Group to finance buildings works
amounting to over €2.9 billion since 2005.
The amplification and diversification of development and
value creation policies realised by Poste Immo led to the
formation of the National Project Management Group
(Direction Nationale des Projets, or DNP) in 2012. Made
up of a multidisciplinary team capable of leading real
estate projects from start to finish, it manages the most
complex operations, of all types (valuation, labour, leasing,
disposals, etc.) and the development and equity investment
subsidiaries. The challenge is giving Poste Immo the
resources to develop and diversify its development and
value creation policies and to structure an organization
capable of contributing to transversal projects within
the context of large metropolitan operations (ex. Grand
Paris, EurAtlantique, etc.). This Management Group will
take charge of cases with complex criteria and requiring
a specific level of expertise, and notably the Louvre post
office project, whose refurbishment was entrusted to
the Dominique Perrault Architecture group (DPA). The
renovation of this real estate jewel of the Group by Poste
Immo will not only modernise the already existing postal
business activities, but will also accommodate public
services, offices, social housing and a hotel. The building
permits were granted in November 2013.
In order to add value to La Poste's real estate assets to
be disposed of or vacant, real estate project development
operations (residential, office, commercial) have been
begun so that the disposal of these buildings generates the
most profit for the Group. The first cases, regarding very
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important buildings (such as Issy-les-Moulineaux, École
Militaire in Paris) and carried out with specialised partners,
are in the process of completion. In the regions, equity
investments were made in companies whose purpose is
the renovation or construction of real estate developments
in Toulouse, Lyon and Fort de France, in preparation for
their resale.
Poste Immo operates as part of a responsible development
policy, with its key goal being the improvement of the
real estate business performance by safeguarding asset
values (i.e. anticipating future market standards, audits
and green ratings, scheduling property upgrades, etc.)
and by offering innovative and financially efficient solutions
(e.g. environmental outbuildings, promotion of renewable
energies, etc.). All new construction corresponds to BBC/
HQE standards (Low Energy Consumption Building/High
Environmental Quality), with the key challenge being
the upgrading of the old portfolio, of which 50% is over
50 years old. Poste Immo has begun reviewing the energy
renovation potential of its strategic buildings, as well as
experimenting with simple schemes and action plans that
can be adjusted for the entire real estate portfolio, and first
of all for facilities where a green lease has been signed,
prior to rolling them out. In 2013, Poste Immo signed and
Energy Efficiency Charter for public and private office
buildings. This Charter anticipates the decree governing
the renovation of office buildings published in 2014. Poste
Immo has actively undertaken to adopt a proactive approach
to the energy performance of its real estate portfolio and
has reaffirmed its commitment to remain a key player in
this area. Furthermore, since May 2012, 44 (1) photovoltaic
units were commissioned in Poste Immo buildings under
a partnership arrangement. Lastly, Poste Immo tasked
GEOPLC with collecting and validating Energy Savings
Certificates (CCE) for several development plans.
As a pioneer, via the signing of five “green pre-completion
leases (2)” for new HEQ and energy-saving sorting platforms
with Mail since January 2010—these leases arrange for the
landlord and lessee to share responsibility for the additional
costs relating to improving buildings’ energy performance
compared with the standard in effect at the time—Poste
Immo has now signed 189 green appendices. 38 of these
appendices relate to the regulatory scope (leases for
premises used as offices or for retail outlets with a surface
area of over 2,000 sqm), while 151 relate to the full scope
(i.e. the implementation of the green appendix with regard to
the building). In conjunction with this, for the rental property
portfolio, measures have been undertaken vis-à-vis lessors.
Poste Immo has in this way taken the initiative of proposing
them model green leases.
Lastly, in the area of healthcare prevention for personnel
and workplace quality of life, 2013 saw the launch of the
"Workplace Quality of Life" Programme in line with analysis
and studies carried out in 2012. On that basis, in 2013,
nearly 300 managers were provided with information on
psycho-social risks. The company in addition recruited a
work ergonomics specialist to provide the company with
new expertise, especially for the evaluation of occupational
risks, an integrated part of all analysis. At the same
time, in July 2013, the real estate division implemented a
mechanism for psychological counselling and input from
staff combined with management support. A mechanism
of social assistance was also implemented for Poste Immo
personnel, supplementing measures by La Poste.
A social survey was carried out in November, and the results
and conclusions will be available in the first quarter of 2014.
Measures are also being rolled out to improve the day-to-
day quality of life, and have been significantly accelerated
by a specific and decentralized budget throughout the real
estate division. New initiatives have also appeared, including
meeting and discussion areas, etc. Around 20 new video-
conferencing systems have been installed in the regions,
reducing travel and the related risks.
5.1.5.3 Challenges and strategy
Since its creation in 2005, Poste Immo has fully exercised
its role of increasing the level of professionalism in real
estate management by investing and modernising the
portfolio. This has in turn contributed to generating cash
for the Group and financing capital expenditures from the
resulting disposals. Poste Immo has facilitated the process
of reclaiming space for the Business Lines, accelerating
work devoted to optimising areas and contributing to real
estate cost controls for Business Lines, while ensuring the
transparency of actual prices.
Today, Poste Immo must further develop its model in order
to adapt to a new environment, new requirements and new
opportunities. On the one hand, against the backdrop of a
particularly difficult economic environment for Business
Line customers, Poste Immo must ramp up its operating
performance, in order to continue to help its customers
meet these new challenges, including service quality,
reducing costs, changing networks, and new markets
(like urban logistics). On the other hand, reducing the
portfolio of directly-owned properties will lead to a decline
in its property revenue. For that reason, Poste Immo must
revamp its business model, by seeking out external growth
opportunities, pursuing joint-development initiatives,
becoming a key provider of urban logistics services or
offering customers project development or property
portfolio management services.
(2) BEFA: "Bail en l’Etat Futur d’Achèvement" (off-plan lease agreement).
(1) Some of which were commissioned in early 2014.
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Poste Immo involved all the company’s stakeholders by
inviting them to take part in reviewing and planning the
"Horizons 2018" strategic project between late 2012 and
the first half of 2013. This collective momentum has laid the
foundations for a company strategy adapted to expectations
of customers and the real estate market alike. Its goal is to
meet the challenges in terms of performance and service,
innovation and openness, to confirm its position as the key
real estate partner for Le Groupe La Poste and its Business
Lines.
Poste Immo has defined five strategic priorities, which break
down into 21 operating projects:
strengthening operating performances for improved
customer service;
actively participating in the forward momentum of
Le Groupe La Poste and its Business Lines;
fuelling growth by innovation and leveraging its strengths;
making commitments in favour of responsible
development and workplace quality of life;
enhancing practices and developing cooperation and trust
between employees, customers and stakeholders.
5.1.5.4 Key figures
With 11,847 buildings—3,485 of which wholly-owned—Poste Immo manages the second largest directly-owned and rented
real estate portfolio after the French government.
DIRECTLY-OWNED REAL ESTATE PORTFOLIOS
2013 2012 2013/2012 change
amount %
Number of properties 3,485 3,689 -204 -5.5%
Number of square metres (in thousands) 3,974 4,150 -176 -4.2%
The breakdown of the portfolio by type of asset is detailed below, in thousands of square metres:
2013 2012
Property type Properties SUN (a) Properties SUN (a)
Post offices 1,485 507 1,609 549
Production premises (b) 695 1,485 701 1,518
Residential 40 21 54 32
Mixed / Post offices (c) 1,037 932 1,072 964
Service (d) 209 1,008 217 1,034
Other (e) 19 21 36 53
Total 3,485 3,974 3,689 4,150(a) Lettable Area (SUN): surface area of premises or a building excluding common areas and parking spaces.
(b) Production premises: Mail and Parcels processing platforms.
(c) Mixed / post offices: premises including a post office and other types of premises (e.g. residential premises, or distribution platform, etc.).
(d) Service: financial centre, financial services and offices.
(e) Other: residential, holiday facility, sporting facilities, etc.
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RENTED REAL ESTATE PORTFOLIO
2013 2012 2013/2012 change
amount %
Number of properties 8,362 8,369 -7 -0.1%
Number of square metres (in thousands) 2,726 2,761 -35 -1.3%
The breakdown of the portfolio by type of asset is detailed below, in thousands of square metres:
2013 2012
Property type Properties SUN (a) Properties SUN (a)
Post offices 6,871 988 6,898 999
Production premises (b) 749 1,349 751 1,377
Residential 20 5 23 12
Mixed/post offices (c) 424 179 402 175
Service (d) 287 201 285 194
Other (e) 11 4 10 4
Total 8,362 2,726 8,369 2,761(a) Lettable Area (SUN): area of premises or a building excluding common areas and parking spaces.
(b) Production premises: Mail and Parcels processing platforms.
(c) Mixed / post offices: premises including a post office and other types of premises (e.g. residential premises, or distribution platform, etc.).
(d) Service: financial centre, financial services and offices.
(e) Other: residential, holiday facility, sporting facilities, etc.
OCCUPANCY OF BUSINESS LINES’ DIRECTLY-OWNED AND RENTAL PROPERTIES
2013 2012
SUN (a) % SUN (a) %
Mail 3,087,619 46% 3,137,024 45%
La Poste Retail Brand 1,987,577 30% 2,037,214 30%
La Banque Postale 303,209 5% 302,941 4%
Parcels 393,204 6% 409,589 6%
Support/structure 192,677 3% 233,736 3%
Real estate 25,395 0% 29,183 1%
External customers 83,909 1% 90,873 1%
Vacant areas (b) 626,614 9% 671,076 10%
Total 6,700,204 100% 6,911,636 100%(a) Lettable Area (SUN): surface area of premises or a building excluding common areas and parking spaces.
(b) Gross rate.
The gross vacancy rate was 15.0% (1) at 31 December 2013. It represented 594,747 sqm, 365,204 sqm of which is being sold
and 1,593 sqm of which is undergoing renovation or demolition. The net vacancy rate (2) for these areas was 5.7%. The rental
vacancy rate (3) was 1.2% at 31 December 2013, i.e. 31,867 sqm.
(1) Percentage of vacant directly-owned surface areas.
(2) Percentage of vacant directly-owned surface areas excluding areas that are up for sale or undergoing renovation works.
(3) Percentage of vacant rental surface areas.
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The digital revolution has significantly transformed
individual and professional practices as well as the
economy in a profound and lasting manner. This digital
revolution represents an opportunity for those organizations
that successfully adapt and change. Starting in 2008
La Poste has responded to this challenge by becoming a
stakeholder in this transformation. With the creation of a
Digital Department reporting to the Chairman-CEO in 2012,
La Poste has clearly incorporated the strategic potential
of this increasingly important trend. The new 2014-2020
strategic plan has accordingly established the digital
priority for Le Groupe La Poste as the focus of a major
transformation.
Le Groupe La Poste has high ambitions for digital
developments.
The strategy of La Poste is focused around five priorities
for development:
developing a digital brand activity for the Group, based
on a strong digital brand identity and a customer-centric
experience supported by a unique customer identifier;
building a position as a "trusted third-party" for digital
exchanges;
becoming a partner of preference for e-retailers by
contributing to the organization of the e-commerce
ecosystem;
developing digital and brick-and-mortar conversions for
local services;
using Big Data as a growth driver for the Group.
These development priorities are underpinned by two
transformational lines of action seeking to:
develop the Group's internal digital DNA (i.e. positioning
the postal worker as a key contributor to the Group's
digital transformation);
establish the Group's position in the external digital
landscape.
La Poste's digital strategy fits within a tripartite relational
system with customers at its centre: a fixed physical
network (agencies and public outlets), a mobile physical
network (postmen, parcel carriers), digital network (digital
brand).
Through this three-pronged relational organization, each
customer chooses its own point of entry for relations with
the Group destined to ensure an optimised customer
experience.
The customer may draw upon the capabilities of a powerful
digital network. The Group's online presence is organised
around three pillars:
La Poste's fixed Internet had 12.75 million unique
visitors in December 2013 through four main web
portals (laposte.fr, laposte.net, labanquepostale.fr and
colissimo.fr). Laposte.fr, the brand’s natural website
point of entry, which is structured according to visitor
profiles (private individuals, businesses, professionals,
e-retailers), presents all offers, recommends Group
solutions and facilitates access via e-stores.
La Banque Postale also has a significant online presence:
The website www.labanquepostale.fr welcomes more
than 498 million visits per year.
Mobile Internet (i.e. cell phones, smartphones and
tablets) is the multi-channel Internet pathway to provide
customers and French people with Le Groupe La Poste's
services, wherever they are, whenever they need it. The
Group's smartphone applications were downloaded
nearly 4.2 million times to research post offices, rates,
or consult a La Banque Postale account.
Finally, social media highlight Le Groupe La Poste's
service-oriented attitude and customer-centric culture
on a day-to-day basis. The Group monitors online
opinion (blogs, discussion forums, social media) and
uses its online presence (Facebook, Twitter, Google +,
Dailymotion, Youtube) to spread information about the
Group and its offerings, provide services (tracking postal
items) and engage with customers.
5.2 Digital services are central to Le Groupe La Poste
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5.2.1.1 Developing the Group's digital brand around a strong digital brand identity and a customer-centric experience supported by a unique client identifier
The digital brand represents the La Poste brand's proposal
for online value (Mail, Parcels and the Retail Brand) to
individual customers, professionals and companies. This
system covers several areas (information, commercial and
non-commercial services) along with several dimensions
(websites, mobile and tablets applications, and social
media).
The Group already offers a complete range of physical,
hybrid or fully digitised products along with a very broad
range of digital services:
The Group's traditional offerings have been digitised:
- Online mail offering (electronic registered letter (1),
online registered mail (2), online mail (3), online
postage, sending and tracking, etc.), creating and
printing personalised stamps to simplify the day-
to-day life of customers in France and facilitate the
sending and receipt of letters in all forms;
- Online parcel services (colissimo.fr, Cityssimo, etc.);
- La Banque Postale products: for example, in 2013,
84% of all transfers were made online;
- Online subscriptions to La Poste Mobile offerings.
Webmail laposte.net has 3.8 million users.
In 2013, to support the development of the digital brand,
improvements were made to the customer experience,
in order to facilitate purchase and payment processes:
customers are now able to purchase several services and
pay through a single transaction.
An online store was created allowing individual and
professional customers to access the following services
through a single account and interface:
- mail forwarding and holding services in France and
other countries;
- printing stamps from one's own printer for private
individuals;
- sending hybrid or 100% electronic registered letters;
- sending an online letter;
- expanding the range of services for professionals
by incorporating the MonTimbrenLigne service for
professionals, which allows professionals to print
stamps from their own printer;
- integration of MonTimbraMoi customers allowing
them to access new services.
In 2013, La Poste online store achieved revenue of
€127.3 million.
5.2.1.2 Developing a position as a trusted intermediary in the digital universe
Needs related to digital trust are developing with the growth
of online exchanges, accompanied by an increasing need for
personal data protections.
To transpose its role as a trusted third-party in the digital
universe, Le Groupe La Poste is exploiting and developing
a range of models to ensure the reliability/security of
digital exchanges and data, in BtoB (digitisation, regulated
information exchanges, etc.) and in BtoC (secure vaults,
digital identities, webmail).
The continuing development of digital applications will depend
on user confidence and a simplification in security methods.
Le Groupe La Poste is developing a position as a trusted
third-party by targeting two major segments:
services for companies and administrations.
Docapost offers a range of offerings including:
- solutions for securing and digitising flows and
exchanges, including e-contracting (Contralia),
e-debiting and e-transfers (Sepalia);
- solutions for digitising processes, such as claims
management, subscriptions (notably through
Docapost BPO);
- secure intermediation platforms for information
flows for specialised business activities (infogreffe,
jedeclare.com), or special events such as online
voting or electronic contracts.
services for private individuals.
Le Groupe La Poste offers a range of services:
- Digiposte offers solutions for receiving, archiving and
sharing electronic documents (payslips, invoices, etc.).
Today, Digiposte has more than 220 major account
customers who distribute documents electronically to
their customers or staff, nearly 35 reseller partners,
and more than1.2 million private individual accounts;
(1) LRE.
(2) LREL.
(3) LREL.
5.2.1 Development priorities for digital ambitions
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- the Digishoot appl icat ion, a t ime-stamped
geolocation-based service for taking pictures with
smartphones was developed through synergies
with Digiposte (photos taken using the Digishoot
application are stored directly in Digiposte).
- laposte.net integrates a functionality for storing mails
and attachments directly in Digiposte;
- Certinomis, a Docapost subsidiary, a certification
authority created in 2000 and recognised by the
French government, issues two forms of electronic
certificates: certificates for individuals and server
certificates. It verifies the identity of a person in
a digital procedure (when signing a response to a
call for bids, for example). Certinomis provides the
electronic version of the La Poste postmark, time-
stamped and archived electronically, to ensure the
traceability of digital exchanges;
- the Digital Identity Department supports retail
customers in performing their online tasks. This
service guarantees online identity for several
applications, such as, for example, on e-commerce
or exchanges between private individuals on websites.
30,000 private individuals have subscribed to the
service since its launch. Users' digital identities are
verified face to face by the postmen.
In this framework, La Poste has fixed as an objective
creating a "digital keychain" for the public. This basic digital
offering consists of services from Digiposte, Digital Identity
and laposte.net.
In 2013, Le Groupe La Poste, Caisse des Dépôts, SFR,
Euro-Information and Solocal Group created Idenum,
through the French government's investing for the future
programme (Programme des Investissements d’Avenir), to
serve as a common platform for users, websites, issuers
of digital ID services and to promote a simple, secure and
interoperable authentication solution. The commitment of
these major groups highlights an important milestone and
a new ambition: be concrete and complete the work that has
been in progress for a few years with the public and private
players of the digital trust.
5.2.1.3 Becoming the preferred partner for e-retailers
Beyond being the privileged partner of e-retailers for
delivering their parcels, Le Groupe La Poste’s goal is to
support brick-and-mortar merchants and e-retailers
at every stage of their development in their online sales
operations (mail, parcels, banking):
• assistance in creating or strengthening online presence
(e-commerce delegation through Mix-Commerce,
website creation with Box e-commerce for micro-
businesses and SME, annuaire.com);
• digital communications solutions for processes
upstream of commercial development (prospecting
assistance, behavioural targeting, sending of emails or
SMS, mailbox advertising campaigns, connected mail,
web advertising campaigns, customer acquisitions or
loyalty campaigns, etc.);
• integrated logistics and e-logistics solutions (ViaPost,
Morin, Orium, Neolog), with the Group's ability to absorb
large volumes during peak periods (Christmas, sales)
and adapting to smaller entities with lower volumes
though equally demanding in terms of quality and
service integration. Solutions for inventory management,
preparing orders and reverse logistics;
• secure payment solutions (Scellius, assured by
La Banque Postale) or micro-payments (Adverline). In
2013, La Banque Postale launched an electronic wallet,
Paylib (with BNP and Société Générale), tested a Talk To
Pay voice authentication mechanism, and is currently in
a trial phase for microSD contactless payments;
• solutions for delivery in France and in other countries;
multiple delivery solutions through the development
of So Colissimo (choice of parcel pick-up location) and
Pickup's network (7,000 PickUp and DropOff at the end
of 2013).
Delivery services have been expanded with Colissimo
"delivery choice options" and Chronopost "interactive
delivery". Addressees can therefore know the delivery
date of their purchases, by e-mail or by a message on
their mobile phone, and postpone the delivery if it is not
convenient for them, by responding to the message.
Chronopost Interactive was furthermore a finalist of
the 2013 e-commerce Awards, as was the Colissimo
International return offer of ColiPoste that allows e-retailers
to manage their return costs.
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Since 2006, Le Groupe La Poste, at the service of connected
commerce, has participated in the e-commerce trade show
and publishes every year a barometer (1) called "Small
Companies and e-Commerce" that seeks to measure
the obstacles and motivations of companies in this area.
The Group is an active member in the French government
"digital transition" programme (Transition Numérique Plus)
through its e-commerce Universities.
In this fast-growing e-commerce market, Le Groupe
La Poste's strategy is to strengthen its positioning by
integrating the existing offerings in its different Business
Lines, and to propose solutions adapted to each type of
market. A study is currently under way on La Poste's
positioning in the Marketplaces (2) segment.
5.2.1.4 Developing digital and physical convergence for local services
Le Groupe La Poste's goal is to leverage its existing assets
and historic positioning as a physical proximity player to
explore opportunities for developing offerings through the
convergence between physical and digital proximity.
Three areas are under study:
supporting local commerce through digital solutions to
develop locally-based logistics.
Local commerce is subject to strong online competition.
To help convenience stores recover customers,
Le Groupe La Poste must develop a "web to store" digital
offering bringing the customer to the store through its
website, and positioning itself in aggregation platforms
providing a common showcase for local merchants. For
example, in Sceaux, a dedicated online marketplace for
the town's convenience stores has been created. After
purchasing online, customers can pick up their shopping
directly in stores or from Cityssimo lockers.
supporting exchanges and local entrepreneurs through
the "community life" ("vie des communautés") initiative.
As the economy based on sharing and proximity is
gaining ground, markets involving different economic
models are experiencing strong development
(carpooling, co-working, peer-to-peer renting, etc.).
Le Groupe La Poste's differentiation is based on its
positioning as a figure of trust and a capacity to provide
both a physical or mobile service in addition to digital
services.
T h e s e p ro j e c t s m u st b e d eve lo p e d t h ro u g h
experimentations and business incubation.
developing connected homes and cities.
Le Groupe la Poste aims at identifying new models based
on home automation systems, coordinating services for
the home and connected objects.
These potential markets are however not yet currently
organised: competition is fierce and multi-form, hence the
need to adopt an innovation and partnership approach.
5.2.1.5 Making Big Data a Group growth driver
With the explosion of data produced online and the
associated possibilities for its exploitation through Big
Data (3) technologies, all companies (and not only those
originating directly from Big Data such as Google) are
transforming the exploitation and leveraging of this data
into a growth driver.
Beyond the contribution of Big Data technologies to
the Group's industrial business activities and customer
knowledge, the challenge for Le Groupe La Poste is to
become a major player in this new ecosystem and its
monetisation.
La Poste's goal is to exploit possibilities from leveraging
and using data for:
improving the efficiency of industrial mail processes.
In connection with coordinating industrial business
activities, new means for using data are applied to
industrial mail processes to improve the efficiency
of distribution processes and services up to delivery:
predictive analysis and real-time analysis of postal data
to optimise the distribution network or improve the
processing of mail pending collection.
This requires investments and tools for collection,
processing, storage and ad hoc viewing.
(1) Barometer PriceMinister-Rakuten—La Poste produced by OpinionWay from a panel of 1,005 companies.
(2) A website offering an online commercial platform for a number of brands for professional and consumer segments.
(3) Big Data refers to the collection, processing and analysis of data traces left on the Web through new technologies made possible by the development
of IT tools.
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For example, the Mail division conducted work (with
Dassault Systems, Exalead and Sopra Group) on a real-
time tool to optimise industrial processing for mail items
through the Orest TAE project (Traitement Automatisé de
l’Enveloppe) in production since December 2011.
The goal of this very ambitious project is to obtain a
general overview of mail flows and be able to provide
performance indicators useful for managing the activity
in real time, as well as to directly obtain information
about a mail item.
enhancing the value proposition of the Group in
connection with existing business activities.
Le Groupe La Poste is positioned in the area of data
marketing with Mediapost Communication. Exploiting
Big Data is an integral part of the growth drivers for this
business activity. The objective is therefore to combine
this offering with other offerings of both Mediapost
Communication and Mail, so as to provide advertisers
with a coherent range of products and services (customer
knowledge, prospecting and loyalty-building solutions).
Conducting forward-looking initiatives to develop new
services as well as develop new growth drivers.
La Poste is positioned within the French government's
open data approach and, furthermore, is developing an
approach aiming to open out its own data.
In connection with its public service missions,
La Poste has made the data for post offices available
to data . gouv . fr . A commitment has been made in the
business contract between La Poste and the French
government with respect to making available the
location of letterboxes and pick-up times in 2015. The
availability of this information represents an opportunity
for developing new services.
By way of example, data on postal outlets (post offices,
letterboxes, Cityssimo, etc.) represent information which
is useful for the development of the business activity and
may also be positively exploited externally. New local
services using this data may also be introduced with the
assistance of partners.
5.2.2 Priorities for transformation
5.2.2.1 Support Group employees in increasing the use of digital technologies
Digital technology impacts all dimensions of a company:
strategy, organization, management, working methods,
social relations, customer, partner and supplier
interactions, etc.
La Poste is convinced its digital transformation will be
driven by its employees. For that reason, a major internal
priority for transformation is organised around the following
objectives:
develop digital cultures and practices;
facilitate the emergence of new ways of working;
develop collaborative approaches and tools;
use digital possibilities to serve employees and
customers.
Certain priorit ies, already present in 2012 were
strengthened, while others represent new priorities for
work initiated in 2013.
Developing digital cultures and practices
In order to support these changes, La Poste is taking
actions to raise awareness with its employees in order to
allow them to better understand digital trends, and above
all, take full advantage of the resulting opportunities and
transformations: the 2012 management forum with a day
devoted to "digital culture and practices", simple modules
providing an introduction to digital knowledge and practices
for the Retail Brand counter clerks provided in October
and November 2013, or the Lab Postal of December
2013 that focused in part on the internal transformation
programme. These many examples highlight initiatives by
Le Groupe La Poste for its employees to promote the digital
transformation.
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Facilitate the emergence of new ways
of working
New forms of exchanges and communities are being
spontaneously created in professional areas. Corporate
social networks make up a source of opportunities,
exchanges and creativity. There are therefore a number of
collaborative initiatives underway in Le Groupe La Poste.
By way of example:
Since 2007, a collaborative platform has brought together
the community of innovators, more than 400 members
from all the Business Lines, in order to discuss about
innovation. In 2012, La Banque Postale built an active
community of 70 new members to create and organise a
collaborative environment capable of contributing to its
innovation approach.
In 2012, La Banque Postale also created a customer
listening platform in order to test and communicate with
customers on new products and services.
La Banque Postale is working on the development of a
collaborative approach for 550 senior executives as a first
step before being extended to the 3,000 managers.
Integrating new terminals
New uses are also reflected by the arrival of new terminals:
smartphones, tablets and other personal devices. La Poste
is modernising its infrastructure and adjusting the employee
equipment policy in order to integrate this multichannel
information and to support this growth driver of digital
culture.
In 2013, tests were conducted to equip post offices with
touch screen tablets to enable the counter clerks to
assist customers in their post office tasks.
With the Facteo project (see Chapter 5, Section 5.1.1.5.1),
the Group is equipping Mail operational staff with mobile
terminals.
5.2.2.2 Establish the Group's public position in the external digital landscape
Le Groupe La Poste must adopt a strong digital positioning
supported by an ambitious visibility programme. Certain
actions already initiated were strengthened in 2013 while
others are in the pipeline to support the Group's digital
activity. The main drivers are:
off-line and online communications initiatives focusing
on internal and external audiences to promote Le Groupe
La Poste's position as a player operating in both digital
and traditional channels. The Groupe has implemented
communications initiatives internally across its network
of public outlets, in the Group's proprietary media and
externally thanks to brand image partnerships, social
media and press relations. For example, La Poste formed
a partnership, which allowed it to have a noteworthy
presence at the "French Web" event in December 2013;
actively contributing to the digital ecosystem and
exercising a strong role as innovator by developing
partnerships with start-ups, associations, institutions
(Government entities, municipalities, universities, etc.).
By way of example, the postal presence during events
such as "Futurs en Seine" with Cap Digital has allowed
La Poste to establish a strong presence in the digital
ecosystem;
maintaining a proximity with public authorities to
accelerate the digital transformation of La Poste
ecosystem and participate in the construction of a
national digital policy. La Poste is a visible stakeholder
in the political ecosystem and actively contributes
to addressing the major digital issues facing the
government. For example, La Poste intervenes as
a signatory member of the Silver Economy Charter.
Le Groupe La Poste is also a member of a group
brought together by the CNIL, the French data protection
authority, to establish digital education as a "major
national priority" in 2014.
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Overview of business activities Regulations 5
Le Groupe La Poste entities are subject to a wide range
of regulations in the course of their business activities.
La Poste is in particular subject to EU legislation on
postal services, which has been transposed into French
law. Le Groupe La Poste has to comply with regulations
governing the transport and forwarding staff businesses,
regulations governing the banking sector and regulations
governing telephone services.
Le Groupe La Poste is also subject to a series of specific
provisions relating to its public service missions.
The following summary of legislative or regulatory
provisions is not intended to provide an exhaustive
description of all the legislative and regulatory provisions
governing Le Groupe La Poste.
5.3 Regulations
5.3.1 Regulation of Le Groupe La Poste' Business activities
From a regulatory perspective, Le Groupe La Poste's
business activities fall into the following main categories:
Postal business (mail/parcels), the Group’s traditional
business activities;
Express-related activities (express parcel business)
through GeoPost subsidiaries;
Banking activities, via its La Banque Postale subsidiary;
since 2011, mobile telephone activities through La Poste
Telecom.
5.3.1.1 Related postal business
The provisions governing the development of the EU internal
market for postal services were set out in an initial directive
of 15 December 1997 (97/67/EC). This was supplemented
by the Directives of 10 June 2002 (2002/39/EC) and of
20 February 2008 (2008/6/EC). These directives were also
responsible for the gradual deregulation of the postal
sector, which ended with the market completely opening
up to competition on 1 January 2011.
The 15 December 1997 Directive notably sanctioned the
provision of a Universal Postal Service within the EU.
The Universal Service, provided in France by La Poste,
conceived as a right of access to postal services for users,
encompasses a minimum range of services of specified
quality which must be provided in all Member States at
affordable prices for the benefit of all users, irrespective of
their geographical location (see Section 5.3.2.1).
The transposition into French law of these European
Directives was:
by French Act No.2005-516 of 20 May 2005 on the
regulation of postal business, which partially deregulated
the market for items of correspondence and defined the
regulatory framework, including the creation of Arcep
(Autorité de régulation des communications électroniques
et des postes—the French regulator of the electronic
communications and postal sectors);
via Act No.2010-123 of 9 February 2010 regarding the
Le Groupe La Poste public sector company and postal
services (codified in Articles L. 1 et seq. of the French
Postal and Electronic Communications Code (CPCE)),
which ended the protection of the sector, and adjusted
the regulatory framework on 1 January 2011.
5.3.1.1.1 Definition of postal service
Postal services are deemed to include the collection,
sorting, shipping and delivery of postal items as part of
regular rounds.
In addition, a postal item is any item to be delivered to the
address indicated by the sender on the item itself or on
its wrapping, including in the form of encoded geographic
coordinates and presented in the final form in which it is
to be shipped. Postal items include books, catalogues,
newspapers, periodicals and postal packages containing
merchandise with or without commercial value.
Lastly, an item of correspondence is defined as a postal
item that weighs up to two kilos and contains written
communication on any kind of physical medium, excluding
books, catalogues, newspapers or periodicals.
All these provisions are set out in Article L. 1 of the CPCE.
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5.3.1.1.2 The system of prior authorizations
The postage of items of correspondence is a regulated
business activity subject to prior receipt from Arcep of an
operating license. Up to 31 December 2010, this license,
which is renewable and non-transferable, was issued for
a period of 10 years and only related to the postal services
outside La Poste’s reserved sector.
Since Title II of the Act of 9 February 2010 took effect on
1 January 2011, Arcep issued a license for a period of
15 years, which covers all items of correspondence (Article
L. 3 of the CPCE), given that the protected sector has been
dismantled.
The procedure to grant authorizations as well as applicable
obligations for authorized service providers are defined in
decree No. 2006-507 dated 3 May 2006. The request for
authorization must contain a certain amount of technical,
financial and commercial information pertaining to the
applicant and its business activity. In addition, postal
service providers must apply for a license to post items of
correspondence domestically and/or cross-border. These
provisions are codified in Articles R. 1-2-1 et seq. of the
French Postal and Electronic Communications Code.
The granting of the license requires an express decision
by Arcep.
La Poste holds a license covering:
items of correspondence including delivery;
postage of outward cross-border items of correspondence.
This license was issued for 10 years pursuant to Arcep
decision No.06-1091 dated 26 October 2006.
In addition, the French Act of 20 May 2005 designated
La Poste as the service provider responsible for the
Universal Postal Service. The French Act of 9 February
2010 reaffirmed the award of this mission to La Poste,
for a period of 15 years as from 1 January 2011 (see
Section 5.3.2.1 et seq.).
5.3.1.1.3 Rights and obligations relating
to the license
La Poste, like all postal service providers licensed to provide
postage services for items of correspondence, is required
to fulfill a series of obligations relating to:
guaranteeing the safety of users, staff and facilities;
guarantee ing the conf ident ia l i t y o f i tems of
correspondence and the integrity of their contents;
providing user access to a simple, transparent and free
claims procedure;
ensuring data and privacy protection;
meeting the goal of protecting the environment as
regards the implementation of the technical aspects of
the services.
These obligations which, in particular, consist of
introducing rules for identifying employees, measures to
ensure the confidentiality of correspondence, in addition
to arrangements for implementing claims processing
procedures, are detailed by a French Ministerial Decree of
3 May 2006.
All these obligations were supplemented by the law of
9 February 2010. Now, any postal service provider holding
an authorization must also:
guarantee the neutrality of the postal services with
regard to the identity of the sender and the nature of the
postal items;
guarantee access to the services and facilities for people
with disabilities in line with the provisions of Article
L. 111-7-3 of the French Building and Housing Code;
comply with legal and contractual obligations related
to employment rights and applicable social security
legislation, notwithstanding the special provisions
applying to those who may have state employee status;
respect public order and national defense related
obligations.
In addition to these obligations, service providers licensed
by Arcep are entitled to access private letterboxes in order
to be in a position to deliver postal items.
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5.3.1.1.4 Access to essential resources
Where it proves necessary to protect the interests of
users and/or to promote genuine competition, Member
States are required to provide transparent and non-
discriminatory access to certain aspects of the postal
infrastructure deemed essential to the carrying on of a
business. La Poste’s essential resources were introduced
by the French Act of 20 May 2005 (codified in Article L. 31 of
the CPCE) transposing the provisions of Directive 97/67/EC.
They consist of access to the postcode system, the address
database, PO boxes, letterboxes, information on address
changes, a forwarding and return to sender service.
In this respect, in France, any operator licensed to post
items of correspondence has access, on transparent and
non-discriminatory terms, and on the technical and pricing
terms and conditions set out in the related agreements
signed with La Poste, to the following essential resources:
the postcode index matching these codes to geographic
details such as streets and addresses;
the information collected by La Poste with respect to
changes of address;
a forwarding service in the event of a change in the
recipient’s address;
a delivery facility or service for PO boxes installed in post
offices.
Arcep is informed by La Poste of the technical and pricing
terms and conditions on which service providers can access
the essential resources and is notified of any agreements
entered into in this respect.
5.3.1.1.5 The liability regime
Postal service providers are subject to a special liability
regime. This regime provides that the liability of postal
service providers shall be governed by Articles 1134 et seq.
and 1382 et seq. of the French Civil Code with respect to
losses and damages arising in the course of the service and
in the event of the delayed delivery of a postal item, if the
service provider has committed to a shipping time for this
postal item (Articles L. 7 and L. 8 of the CPCE).
Compensation is set by French Decree No.2006-1020 of
11 August 2006, which provides for maximum compensation
with regard to the nature of the items and the postal
charges. Accordingly, compensation payable by postal
service providers as a result of the loss or damage of postal
items, other than parcels, may not exceed:
for ordinary items, a sum equal to twice the postage
price;
for items that the sender has asked to be tracked from
drop-off in the service provider’s network to delivery, a
sum equal to three times the postage price;
for items subject, in accordance with the terms
and conditions laid down by decree of the minister
responsible for postal services, to procedures attesting
to their postage and delivery, the sum of €16;
for insured items, the insured amount.
In the case of the loss or damage of postal packages, the
maximum compensation is €23 per kg of merchandise lost
or damaged (the gross weight shall be the weight of the
merchandise plus the wrapping).
The decree also sets out the period after which a postal
item that hasn’t been delivered to its recipient should be
considered lost (period of 40 days from the date on which it
is dropped off in the service provider’s network).
The compensation that may be payable by postal service
providers as a result of a delay in delivering postal items
entrusted to them may not exceed the postage price.
5.3.1.1.6 Obligations in terms of information
Under Article L. 135 of the CPCE, licensees must provide
Arcep with annual statistics on the use, coverage area
and terms and conditions of access to their service. This
reporting in particular includes items relating to the nature
and volume of the various postal services for which they
are licensed. Arcep is also empowered to carry out expert
assessments, undertake studies, collect data and carry out
all forms of reporting on the postal sector.
As part of this reporting obligation, Arcep is required to
make a decision every year with respect to carrying out an
annual survey designed to:
ensure that all sector stakeholders and consumers are
kept informed by publishing aggregate indicators on the
main postal sector segments;
provide the necessary data for public policy reviews
and in particular Arcep’s work with respect to the
implementation of applicable regulation;
assess the effect of its decisions on the market as a
whole.
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The Arcep members designated in the decision are the
only ones authorized to receive and process individual
information collected in the course of this survey.
These surveys are published on Arcep’s website as part of
the Annual Observatory of Postal Business.
5.3.1.1.7 Arcep's authority
Arcep is empowered to settle disputes arising from the
performance of postal service activities. This consists of
powers to settle disputes and arbitration powers.
Arcep may be called upon to settle a dispute when it
involves an agreement to access essential resources (see
Section 5.3.1.1.4), or involves entering into or performing
agreements that vary from the general terms and
conditions of the Universal Service offering for items of
correspondence. Where the dispute falls outside the scope
of the dispute settlement procedure, Arcep may be called
upon to conciliate.
In addition, Arcep can, on its own initiative or at the
request of the Minister responsible for postal services, a
professional body, a recognized user group, an affected
individual or legal entity, Universal Postal Service provider
or license holder, decide to hand down penalties against a
Universal Service provider or a license holder. Arcep may
only hand down penalties having given the interested party
formal notice to comply with its obligations within a specific
deadline.
The penalties available to Arcep are as follows:
a warning;
cutting a year off the length of the license;
suspending the license for at most one month;
withdrawing the license;
a fine, the amount of which is proportional to the
seriousness of the breach, the position of the interested
party, the scale of the damage and the amount it
benefited from it, subject to a 5% maximum of net
revenue for the most recent ended financial year, this
threshold being raised to 10% in the event of a further
infringement.
Arcep cannot be summoned regarding events dating back
more than three years, if no effort has been taken to identify
them, ascertain their veracity or penalize them. Lastly,
the penalties issued by Arcep were based on a reasoned
decision, notified to the interested party and published
in the French Official Bulletin. They may be cause for an
administrative appeal and an application for a suspension
filed in line with the provisions of Article L. 521-1 of the
French Administrative Justice Code with the French Council
of State.
In addition to these powers, since the effective introduction
of Title II of the French Act of 9 February 2010, Arcep has
additional powers with respect to the processing of claims
by postal service users where these claims have not been
resolved under the procedures put in place by the licensed
postal service providers.
5.3.1.2 Express-related business activities
Through GeoPost’s subsidiaries, La Poste operates in the
express parcel service business. These subsidiaries operate
mainly as freight forwarding staff or road hauliers. These
two activities are governed by specific regulations.
5.3.1.2.1 Conditions governing the
performance of transport and freight
forwarding activities
The conditions governing the exercise of freight transport
activities are mainly laid down at the European level by
Regulation No.1071/2009 of 21 October 2009 and at the
national level by the French Act of 30 December 1982
on domestic transport and French Decree No.99-752 of
30 August 1999, and amended by Decree No.2011-2045 of
28 December 2011.
The conditions governing entry into a forwarding staff
member business are mainly laid down in the French Act
of 30 December 1982 on domestic transport and French
Decree No.90-200 of 5 March 1990 on the performance of
forwarding staff member activities. The latter differs from
the transport operator in that it organizes and arranges
for the carrying out under its responsibility of the various
freight transport phases, without actually transporting them
itself or without transporting them the whole way.
Companies operating in the road freight transport sector
in France using motorized vehicles must possess an
administrative authorization to exercise such an activity
and be registered as well in the national register of road
transport undertakings (registre des transporteurs). For
the issuance of the administrative authorization and
registration, four conditions must be met: undertakings are
stably and genuinely established, financial standing, good
repute and professional ability.
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The financial standing criterion means that the Company
must have equity or guarantees of at least €1,800 for the
first vehicle with an average authorized weight of up to
3.5 tons, and €900 for each subsequent vehicle. For vehicles
above 3.5 tons, these amounts are increased respectively to
€9,000 and €5,000. The integrity criterion must be satisfied
both by the Company’s legal representative(s), and the
person responsible for the management of the transport
activity.
The condition of professional ability concerns the
company's transport manager who must hold a certificate
of professional ability. This status is obtained by the
possession of certain diplomas, a specific examination or
justification of professional experience.
Companies exercising the profession of freight forwarding
staff in France must be registered in the national register
for freight forwarding staff (registre des commissionnaires de
transport). Such registration is subject to compliance with
the two criteria mentioned above of professional standing
and professional competence.
5.3.1.2.2 Conditions governing the
performance of road transport and freight
forwarder activities
The freight road transport company must possess an
EU license if it engages in transport using vehicles with
a maximum authorized payload above 3.5 tons and a
national transport license for vehicles under 3.5 tons.
These administrative authorizations are valid for 10 years
and subject to renewal.
A certified copy of the administrative authorization required
must be carried on board the corresponding vehicle.
Furthermore, operating a freight transport business in
France requires a number of documents, and namely the
bill of lading and tracking document.
The bill of loading, which is mandatory on board for any
vehicle, contains a series of compulsory information
regarding the sender, the recipient and the freight being
transported. It may be produced by the forwarding staff
member, when applicable.
The tracking document must be filled in as the transport
is performed. This document, which is duly signed by
the remitter or its representative and kept in the vehicle,
indicates the arrival and departure dates and times of
the vehicle both at the loading location and the unloading
location. The freight forwarding staff member is required
to maintain a register in paper or electronic form for road
freight forwarding or consolidation services including
information about the shipper, recipient, road haulier and
the service.
In addition, a summary of the load indicating the inventory
of the consolidation batch must be drawn up by the
consolidator forwarding staff member.
5.3.1.3 Banking activities
La Banque Postale, a wholly-owned subsidiary of La Poste,
is a public limited company with an Executive and
Supervisory Board, authorized to operate as a bank by the
CECEI (Comité des établissements de crédit et des entreprises
d’investissement—Credit Institutions and Investment Firms
Committee) in 2005 and registered as an insurance broker
by ORIAS (Organisme pour le registre des intermédiaires en
assurances—the Register of Insurance Brokers).
In this respect, La Banque Postale targets all customer
segments and provides a comprehensive banking, financial,
savings and insurance offering:
banking services: bound by CCP and payment services,
overdraft facilities, real estate loans, consumer credit,
corporate loans and loans to local authorities;
financial instruments: investment account management,
investment of financial securities including units or
shares in UCITS, and futures;
savings products: savings products subject to special tax
regimes and unregulated savings products, employee
savings products, insurance linked products.
It also offers payment services unconnected with a bank
account, such as postal money orders, money transfers,
cash foreign currency exchange and travelers’ checks.
Bank transactions, transactions associated with bank
transactions, investment services and services associated
with investment services, savings products and cash foreign
currency exchange are regulated by the French Monetary
and Financial Code.
Insurance products are governed by the French Insurance
Code.
These codified provisions, supplemented by un-codified
legal and regulatory provisions, govern the business
activities of La Banque Postale in their respective fields.
Moreover, La Banque Postale is also subject to oversight
by professional authorities: Autorité de contrôle prudentiel
(French Prudential Oversight Authority) and Autorité des
marchés financiers (French Financial Markets Authority).
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5.3.1.4 Mobile telephone services business activities
On 14 October 2010, La Poste Telecom declared itself as
an operator with Arcep (French regulator of the electronic
communications and postal sectors) to conduct two
business activities: telephone services to the public (direct
transfer of voice in real time between land line or mobile
users) and services other than telephone service (electronic
communication services). The telephone service that
La Poste Telecom provides the public is mobile.
However, La Poste Telecom is a mobile telephone operator
that does not have specific authorization for the use of radio
frequencies. As such, it is an MVNO (Mobile Virtual Network
Operator).
SFR is the “host” network operator of La Poste Telecom.
An agreement to provide access was signed in early 2011
for the supply by SFR to La Poste Telecom of wholesale
mobile electronic communications services (voice,
SMS, data) across metropolitan France. Thus, La Poste
Telecom, through its access agreement, benefits from the
interconnections negotiated by SFR with all mobile and
fixed-line operators.
End-to-end mobile voice services are provided by SFR with
a quality of service equivalent to that offered by SFR to its
own customers for comparable services. In addition, insofar
as that La Poste Telecom benefits from a simple provision
of access, it is primarily SFR that is bound by regulatory
obligations regarding interconnection.
Since registering with Arcep, La Poste Telecom has enforced
the rights and obligations attached to the establishment
and operation of public networks on the basis of Article
L. 33-1 of the French Postal and Electronic Communications
Code (CPCE).
Meanwhile, La Poste Telecom has the right to engage in the
aforementioned activities of public telephone service and
services other than telephone service as well as the right
to be issued blocks of numbers by Arcep.
La Poste Telecom is subject to the rules relating in
particular to:
conditions governing the consistency, quality and
availability of service;
conditions of confidentiality and neutrality with regard
to the messages transmitted and information related to
communications;
regulations governing health and environmental
protection;
free routing of emergency calls;
funding of Universal Electronic Communications Service.
5.3.2 Regulations applicable to public sector missions
La Poste is tasked with four public service and public
interest missions, defined in Article 2 of the French Act of
2 July 1990, as amended:
the Universal Postal Service;
the contribution, through its network of public outlets, to
regional planning and development;
press transportation and delivery;
banking accessibility.
On 22 July 2008, the French government and La Poste signed
a public service agreement for the period between 2008 and
2012. This agreement set out the conditions underpinning
the new framework governing the performance of the public
service missions. An amendment signed on 14 February
2012 confirmed the quality of service goals for 2011 and
2012 with regard to services falling within the scope of the
Universal Service mission.
The undertakings given by La Poste and the French
government were redefined by the "2013-2017 Public
Service Agreement" which was approved by the Group's
Board of Directors on 22 April 2013, and signed by the
stakeholders on 1 July 2013.
This agreement provides for:
maintaining a broad scope of public service missions
assigned to La Poste: Universal Postal Service, press
transport and delivery, banking services accessibility and
regional planning;
further reinforcement in the quality of service objectives
(Priority Mail, Registered Letter and Green Mail);
missions adapted to meet users' expectations and
technological advances (online letter, range for sending
small items);
implementation of corporate citizenship engagements
in favour of the development of regions and companies,
the most disadvantaged persons, the development of
the digital society and corporate social responsibility
initiatives.
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For each of its missions, the concrete implications are as
follows:
Universal Service mission: the agreement provides for
several advances in terms of quality of service. A revision
clause was set for 2015 to adjust the agreement, if
necessary, to the decline in mail volumes;
Mission for press transport and del ivery: the
commitments made by La Poste and the French
government in the 2008-2015 Schwartz agreements
were confirmed A review of the terms and conditions
for carrying out the mission beyond 2015 will also be
scheduled;
Banking accessibility mission: this mission is confirmed.
A study on its potential development is in progress by
the General inspectorate of Finance and the General
inspectorate of Social Affairs. The purpose of this
initiative is to shed light on the work on the extension of
the mission beyond 2014;
Regional planning mission: the agreement sets out the
guidelines of the “new regional coverage agreement”,
i.e. continuing the renovation of the post offices, and
developing partnerships, by giving priority to innovation
and digital technology. The agreement for the period
between 2014 and 2016 was signed on 16 January 2014
by the AMF (French Mayors’ Association), the French
government, and La Poste.
The public service missions assigned to La Poste are dealt
with in turn in the following sections.
5.3.2.1 Universal Postal Service mission
The French Act of 20 May 2005 designated La Poste as the
service provider responsible for the Universal Postal Service
mission. The French Act of 9 February 2010 confirmed the
assignment of this mission to La Poste, for a period of
15 years as from 1 January 2011.
5.3.2.1.1 Legal and regulatory framework
The concept of Universal Postal Service, introduced by
Directive 97/67/EC, represents a guarantee for every
European citizen of a permanent postal service of specified
quality throughout the territory at affordable prices. This
guarantee involves:
delivery to everyone’s home;
collection and delivery at least five times a week;
access to post offices and letterboxes;
deadlines for national and cross-border shippings;
affordable prices based on costs.
In terms of services, Directive 97/67/EC stated that the
Universal Postal Service should at least include the
following services:
postal items of up to 2 kg;
postal packages of up to 10 kg;
services for registered items and insured items.
EU provisions on the Universal Service were transposed
into French law by means of the French Act of 20 May 2005
subsequently supplemented by the French Act of 9 February
2010.
The legislature elected for an expanded Universal Service
as provided for in Article L. 1 of the CPCE: “The Universal
Postal Service helps bring about social cohesion and
the balanced development of the country. It is carried
out in such a way as to ensure respect for the principles
of equality, continuity and adaptability while striving to
maximize economic and social efficiency. It guarantees all
users throughout the country permanent access to postal
services of specified quality. These services are offered at
affordable prices for all users”.
In addition, the French Decree of 5 January 2007 on the
Universal Service reaffirmed and detailed the legislature’s
choice with respect to both the characteristics of the
Universal Service (i.e. offering, accessibility, collection,
delivery, etc.) and the rights and obligations of La Poste as
Universal Service provider.
The criteria of accessibility for the network of postal outlets
according to the Universal Service mission set by the French
Decree of 5 January 2007 on the Universal Postal Service
provide that at least 99% of the French population and at
least 95% of the population of each department be within
10 km of a postal outlet and that all towns with more than
10,000 inhabitants have at least one postal outlet per
20,000 inhabitants.
The set of principles governing the Universal Service’s
definition and scope were not amended by the French Act
of 9 February 2010.
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5.3.2.1.2 Regulatory framework
Arcep is tasked with monitoring the opening up and
proper functioning of the postal market while ensuring the
financing and safeguarding of the Universal Service.
Arcep ensures that La Poste meets its Universal Service
obligations and in this regard establishes a multi-annual
price cap along with price regulation on a case-by-case
basis of services within the scope of the Universal Service.
La Poste is subject in its capacity as Universal Service
provider to obligations with respect to quality of service,
claims processing and accounting. The financing of this
mission is provided for by means of the establishment of a
compensation fund.
In addition, every year La Poste sends Arcep a report on
the Universal Service it provided, with a copy sent to the
minister responsible for postal services.
Features of the Universal Service
In France, the Universal Postal Service includes national
and cross-border transmission of postal items weighing up
to 2 kg, postal packages of up to 20 kg, registered items
and insured items. Collection and delivery services within
the scope of the Universal Postal Service are carried out
every working day, save in exceptional circumstances.
Distribution of services within the scope of the Universal
Service is carried out in appropriate facilities to the door of
every individual or legal entity.
The scope of the Universal Postal Service is set out in
French Decree No.2007-29 of 5 January 2007 (codified as
Articles R. 1 et seq. of the CPCE), which states that the
Universal Service includes the following minimum services
for domestic and cross-border postage:
single piece items of correspondence with two levels of
priority;
bulk items of correspondence;
registered items;
newspapers and periodicals;
catalogues and other printed matter;
postal packages;
insured items;
forwarding;
literature for the blind.
These services are offered on a permanent basis to all users
across Metropolitan France, in the overseas departments
and in Saint-Pierre-et-Miquelon.
Universal Service catalogue
La Poste puts together and keeps updated a catalogue
outlining the services falling within the scope of the
Universal Service (i.e. description of offerings and current
prices). This catalogue was approved by the minister
responsible for postal services on 20 August 2007, following
a favourable opinion by Arcep on 26 April 2007, and can be
downloaded from the La Poste's website.
La Poste must simultaneously seek approval from the
minister responsible for postal services, and consult Arcep
for any proposed substantial changes to the catalogue,
other than prices, when these changes affect the single
piece postal component of the Universal Service. Should
the minister fail to object within two months of receipt of
the document, the changes are deemed approved. In the
case of bulk postal services, La Poste must only inform the
minister responsible for postal services and Arcep of the
catalogue changes.
Multi-annual price caps
Multi-annual price caps governing the prices for services
falling within the scope of the Universal Service are set by
Arcep, following a review of La Poste’s proposal (Article
L. 5-2 of the CPCE).
This price cap makes it possible to control price increases
for all or some of the products in the sector governed by
postal regulations, with a view to keeping the Company’s
operating margin constant over a specific period.
Regarding the periods from 2006-2008 then 2009-2012, the
annual changes in postal rates from the Universal Service
may not exceed the level of inflation plus 0.3 points. In 2012,
the rate increase capacity thus amounted to 2%.
The framework for the 2013-2015 period was defined by
ruling No.2012-1353 dated 6 November 2012. This new
framework provides that the change in rates may not exceed
the level of inflation plus 1 point (i.e. 2.8% for 2013 and 2.3%
for 2014). The price caps were established based on the
inflation rate anticipated in the French Finance Bill (PLF),
elasticity of consumer demand and changes in La Poste's
volumes and expenses. Nevertheless, the arrangement
comes with symmetric adjustment clauses if assumptions
regarding inflation and changing volumes are not verified.
Case-by-case price regulation for Universal Service products
The French Act of 9 February 2010 (Article L. 5-2-3° of the
CPCE) stipulates that Arcep issues opinions on service
price increases within the scope of the Universal Service. In
addition, it empowers Arcep to change or suspend planned
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price increases where the pricing principles applying to the
Universal Service are patently not complied with.
Quality of service obligations
At EU level, quality of service standards relating to the
shipping time for postal items between the date of deposit
by the sender and delivery to the recipient were defined for
intra-EU cross-border mail. Accordingly, from the time the
object is passed to the postal operator, 85% of items must
be delivered within three days and 95% within five days.
At national level, quality targets are also set by the minister
responsible for postal services (order of 2 August 2013).
These annual targets, dealing with the speed and reliability
of services, cover the following services:
Priority Mail: delivery rate in D+1 >85%;
Registered Mail: delivery rate in D+2 of 93%;
Green Mail: delivery rate in D+2 of 93%;
EU cross-border mail delivery rate D+3 of 90% and in
D+5 of 97%;
the Colissimo counter: delivery rate in D+2 of 88%.
Arcep ensures that these targets are met along with the
publication and reliability of service quality measures. It also
commissions an independent body to carry out an annual
survey on the quality of service of various components
of the Universal Service. In addition, La Poste provides
Arcep with any information it may request for carrying
out its responsibilities and its oversight of the Universal
Postal Service. Arcep’s requests must be well-founded and
proportionate to its needs as well as specify the level of
detail required and the deadline involved.
Moreover, La Poste regularly measures quality of service
based on European or national standards (Article R. 1-1-
8 of the CPCE). Some of these standards are designated
annually by ministerial decree. The results of these
measurements are disclosed to users and Arcep.
Claims processing
As the Universal Service Provider in France, La Poste
must publish an annual report on the monitoring of its
performance, information on the number of claims and
the manner in which they have been handled (Article 19 of
Directive no. 97/67/EC).
The decree from the minister responsible for postal services
on the quality of service targets set for La Poste with respect
to its Universal Service mission also states that an annual
report must be published on claims processing, breaking
down the number of mail and parcels claims as well as
the procedure used to handle them. The evaluation method
must comply with the principles provided for by European
standard EN 14012. The decree of 2 August 2013 establishes
a minimum response of 95% within a 21 day time frame for
claims involving domestic mail.
Furthermore, as Universal Service provider, La Poste must
display a notice at each public outlet detailing the claims
procedure and the standard compensation. Universal
Service users must have access to claims forms. The time
taken to deal with a claim relating to a domestic postal
item may not exceed two months from receipt of the claim
accompanied by supporting documentation. This claims
processing procedure is free for users (Article R. 1-1-9 of
the CPCE).
Lastly, should users not be satisfied with the response to
their claim, they may file a further claim, which is dealt
with by a different unit. If they feel the response is still
not satisfactory, they may then ask Le Groupe La Poste's
mediator to intervene.
Accounting obligations
As Universal Postal Service provider, up to 31 December
2010, Le Groupe La Poste was required to present separate
financial statements for each service within the reserved
sector on the one hand and the services in the deregulated
sector on the other hand, distinguishing between those
within the scope of the Universal Service and those falling
outside. Since 1 January 2011, when the market was fully
deregulated and the protected sector was dismantled,
La Poste has been required to present separate financial
statements for the services within the Universal Service
scope, and for the services outside that scope.
The cost allocation principles for this regulatory accounting
are laid down by Arcep. At the request of the latter, La Poste
provides it with any accounting document and information
required to enable it to verify that it is complying with its
obligations.
La Poste’s regulatory accounting has been verified by
La Poste Statutory Auditors every year since 2000. Since
2006, Arcep has conducted an audit under La Poste's
responsibility, using an independent body authorized by it
for that purpose, to verify that the principles it defined are
effectively applied.
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Universal Service financing
If La Poste bears an unfair cost under its Universal
Service obligations, it may request the application of a
compensation fund, which would be funded by all licensed
postal operators (including itself). In the event the fund was
applied, the scheme until 31 December 2010 provided that
the contribution made by each service provider would be
calculated in proportion to the revenue generated under
the Universal Service. Since 1 January 2011, in the event
that the fund is activated, the contribution of each operator
has been calculated in proportion to the number of postal
items dispatched within the Universal Service scope.
Nevertheless, any operator dispatching a number of items
of correspondence below a threshold set by decree shall
be exempt from making a contribution to the fund. Arcep
is responsible for calculating the net cost of the Universal
Service obligations and for the amount of the contribution
payable into the fund by each authorized postal operator.
To this end, Arcep may ask La Poste to provide it with
any information and study it has that makes it possible to
objectively assess the additional costs associated with the
provision of the Universal Service.
A Council of State Decree, issued following consultation
with Arcep and the CSSPPCE (Commission supérieure
du service public des postes et des communications
électroniques—High Commission for the Public Service
of Postal and Electronic Communications), should clarify
methods for measuring, compensating and sharing net
costs associated with Universal Service obligations. A
second decree, issued following a public notice by Arcep at
the request of the Universal Service provider establishing,
based on accounting data, that it bears an unfair financial
expense as a result of its Universal Service obligations, shall
set the first year with respect to which the net contributions
into the Universal Postal Service compensation fund shall
be collected.
5.3.2.2 Regional planning mission
The French Act of 9 February 2010 reaffirmed the
assignment to La Poste of a regional planning public service
mission.
5.3.2.2.1 Legal and regulatory framework
As part of its mission to contribute to regional planning,
La Poste is subject to access rules set by the French Act on
the organization of the La Poste and France Telecom public
service of 2 July 1990 as amended by the Act of 20 May
2005: “Save in exceptional circumstances, these rules do
not permit that over 10% of people in a department live
over five kilometres or over 20 minutes’ car journey, based
on the traffic conditions in that department, from home to
the nearest La Poste public outlets”.
The French Postal Act of 9 February 2010 adds that the
La Poste network “must have at least 17,000 public outlets
spread across French territory taking into consideration
France's special characteristics, in particular in the
overseas departments and local authorities”.
For the purposes of this mission, La Poste adapts its
network of public outlets by entering into local public or
private partnerships while striving to maximize economic
and social efficiency. La Poste’s partners are firstly
municipalities and groupings of municipalities in the case of
Local Postal Agencies, and secondly shopkeepers, traders,
tobacco retailers in the case of Relais Poste outlets. These
partnerships make it possible to improve access to postal
services through longer opening hours. Their development
in accordance with local elected representatives is at the
heart of the policy to adapt postal coverage.
At the national level, the La Poste network has over
17,000 public outlets (post offices, Local Postal Agencies,
and Relais Poste outlets), spread across 14,000 districts.
57.9% of these outlets are in located rural districts (1).
Within each department, La Poste presents an annual
report on the local coverage in line with the accessibility
standard, including a map setting out the location of the
various La Poste public outlets.
In 2013, 90 departments in Metropolitan France met the
accessibility standard. In the overseas departments and
territories, every city has at least one public outlet.
5.3.2.2.2 Financing and governance
The additional coverage to ensure the regional planning
mission corresponds to the number of public outlets
deployed by La Poste to enable it to fulfil this mission,
in addition to those resulting from the sole obligation of
accessibility of the Universal Service.
The net cost of this additional coverage is assessed each
year by Arcep on the basis of a method provided for
by a Council of State Decree of 18 July 2011, following
consultation with CSSPPCE. The latter specifies that “the
net cost of this additional coverage is equal to the avoided
cost in its absence less revenue lost in its absence”.
(1) As defined by INSEE 1999.
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After applying this method, Arcep considered that the net
cost of the additional coverage required by La Poste in order
to fulfil its regional planning mission was €252 million for
2012 (decision dated 1 October 2013).
To offset the additional costs, up to 31 December 2010,
La Poste benefited from an 85% reduction in local taxes. As
from 2011, this rebate can amount to up 95%, in accordance
with the French Act of 9 February 2010. The provisional
amount for 2013 was approximately €170 million, an
identical amount to that for the first year of the new local
postal coverage agreement. It is allocated to a national
postal equalization territorial compensation fund for which
La Poste must keep separate accounting and financial
records. By a ruling on 25 January 2012, the European
Commission approved this compensation plan for the
2008-2012 period, as government assistance compatible
with the treaty on the functioning of the European Union.
This mechanism is currently subject to notification by the
French government for 2013 and the following years.
The local postal coverage agreement signed by the French
government, La Poste and the French Mayors’ Association,
defines the procedures for allocating and managing this
fund. Allocations are made on a departmental basis,
depending on the number of public outlets located in so-
called priority areas: rural areas and the rural revitalization
areas that they include, mountain and hill areas, deprived
urban areas (ZUS) and French overseas departments and
Territories. To ensure a true equalization, a weighting is
applied to each eligible public outlet on the basis of its
geographic area.
Each departmental allowance contributes to the
indemnification of the Local Postal Agencies, remunerating
the Relais Poste outlets, a departmental program
negotiated with the Departmental Commission for Regional
Post Office Presence (CDPPT), which in particular finances
the refurbishment of post offices, a ZUS program, a French
overseas department program as well as a program
dedicated to the operation and development of rural post
offices.
The first two postal service coverage agreements,
which covered the periods between 2008 and 2010, and
between 2011 and 2013, fulfilled their commitments.
Over €900 million was invested in six years, including
€330 million to ensure the development and sustainability
of partnerships (postal agencies and Relais Poste outlets),
€200 million to support the real estate investment policy in
priority areas, including the renovation of over 2,700 post
offices located in priority areas, and lastly, €370 million to
guarantee the running of post offices in rural areas.
The new agreement for the period between 2014 and 2016,
which was signed on 16 January 2014, is in keeping with
the two previous agreements, although it innovates and
goes even further in some areas. In this sense, it meets the
expectations of elected local officials, with whom meetings
were held as part of a major consultation process in the
spring of 2013. Over 130 meetings enabled these officials
to express their point of view, to share their expectations,
and to suggest new ideas. The new agreement focuses on
improving access to services, and especially digital services:
the postal service offering must be made available to the
general public in all its forms in areas that are eligible for
the equalization fund. Emphasis has also been placed on
the initiative to pool public services, in order to reduce
regional disparities in terms of the local service offering.
In this respect, the inclusion of postal services in existing
pooled service areas is a priority. The pooling of services
may also take other forms, primarily through turning to new
kinds of partners.
In the departments, the Departmental Commission on
Local Postal Presence (CDPPT), composed of eight elected
officials representing cities and municipalities, the general
councils and regional councils, guarantees the consistency
of the postal offering in its territory and is responsible for
monitoring La Poste's adherence to accessibility standards
regarding regional planning. It proposes a division of the
departmental allowance for the territorial equalization
fund and negotiates projects that fall under the fund with
La Poste, in particular in the programs for rural, deprived
urban area's and overseas departments and territories. It
also reviews the potential submissions from the mayors on
changes in postal coverage. Over 300 CDPPT meetings were
held in 2013.
At the national level, the National Observatory of Postal
Coverage, established in December 2007, monitors the
implementation of the local postal coverage agreement.
It follows, in particular, the management of equalization
funds, the CDPPT work and the development of the postal
network. It researches concrete solutions to improve, where
applicable, the relations between La Poste and its partners.
The new agreement is characterized by a more significant
representation of the CDPPT within the Observatory, which
has seen the scope of its missions broadened to include
assessing the work performed by the CDPPT, primarily via its
responsibility to warn the joint signatories of the agreement
in the event of significant discrepancies between the work
performed and the estimated expenditure. The Observatory
also approves any new form of service pooling, and the trials
aimed at managing local services proposed by the CDPPT.
The CDPPT have more room for maneuver in terms of
managing the equalization fund, in order to improve access to
postal services, and of the prioritization and management of
projects, which are assessed over the three-year term of the
agreement. They may also suggest the launching of trials,
specifically where pooling services are concerned.
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This decentralized system, with dual governance both
nationally and departmentally, allows for ongoing and in-
depth interaction with, and consultation of local elected
officials.
5.3.2.3 Press transportation and delivery mission
The French Act of 2 July 1990 makes La Poste responsible
for a press transportation and delivery public service
mission. The French Act of 9 February 2010 confirmed the
assignment of this mission to La Poste.
5.3.2.3.1 Framework of the mission
The press transportation and delivery public service mission
is governed by multi-annual agreements between the
French government, La Poste and press industry unions.
The current multi-annual agreement (the “Schwartz
agreement”), was signed on 23 July 2008 and sets out
the commitments of each party for the 2009-2015 period.
Its purpose is to ensure this public service mission is
performed on a financially balanced basis.
Accordingly, the Schwartz agreement provides for price
increases of between 2% and 5% excluding inflation over
the period between 2009 and 2015, depending on the special
nature of each newspaper and magazine category (i.e.
publications that hold a registration certificate issued by
the French Joint Commission for Publications and Press
Agencies, political and general information publications,
and daily newspapers with low levels of advertising income).
The French government’s goal under this framework is to
ensure a plurality of information and country-wide postal
delivery access by publications and readers.
The prices for the services offered to the press under
this public service mission are approved by the minister
responsible for postal activities following a public notice by
Arcep (Article L. 4 of the CPCE).
In addition, under these agreements, La Poste has
undertaken to continue its efforts to optimize, increase
productivity and generate savings so as to reflect changes
in volumes and bring about a net reduction in total costs
for the press of €200 million by 2015, excluding inflation.
Lastly, the parties also agreed to jointly develop industrial
solutions that would make it possible both to optimize press
transportation and delivery as well as grow press home
delivery.
In addition, La Poste, the press and the French government
agreed to establish a Universal Service price for press
publications. This price entered into effect on 1 March 2009.
A Committee to monitor the draft agreement is responsible
for reviewing an annual overview of the implementation of
the agreement, ensuring that the commitments made by
each party are being met and dealing with any difficulties
that may arise with regard to the implementation of the
agreement.
5.3.2.3.2 Financing
The “Schwartz agreements” determine the French
government’s contribution until 2015; this contribution,
which takes the form of an annual financial contribution,
aims to offset the additional costs of the public service
mission relating to the transportation and delivery of
newspapers and magazines.
This contribution is implemented in a manner that is
wholly legal, in particular under EU law. Accordingly, in
order to enable the system to be implemented, the French
government is committed to providing Le Groupe La Poste
with an annual contribution of approximately €242 million in
2009, 2010 and 2011, then €232 million in 2012, €217 million
in 2013, €200 million in 2014 and €180 million in 2015.
By a ruling on 25 January 2012, the European Commission
approved this compensation plan for the 2008-2012 period,
as a government assistance compatible with the treaty on
the functioning of the European Union. This mechanism is
currently subject to notification by the French government
for 2013 and the following years.
The French 2014 Finance Act nevertheless provided for a
€50 million reduction in compensation budgeted for 2014
for La Poste's transport and delivery mission in relation to
the amount indicated in the tripartite agreement of 23 July
2008.
Furthermore, the Finance Act also stipulated that
the moratorium in 2014 on regulated rates for the
press established in 2009 that resulted in a one year
postponement in the application of increases actually
incurred by publishers, would not be renewed. The impact
on La Poste's accounts of this deferred application of rate
increases was offset by a contribution from the general
government budget in order to maintain the equilibrium of
the agreement. The impact of the end of the moratorium
will gradually be offset by an increase in the postal rates
for delivering newspapers and magazines.
As part of the reform of aid to the press, the general
inspectorate of cultural affairs, the general inspectorate
of Finance and the general council for the economy,
energy industry and technologies were tasked to initiate
reflection about the complementary nature of the various
press distribution modes: postage, delivery and newsstand
sales. This will be implemented by 2016, when the
Schwartz agreements come to end. This mission consists
in particular, in drawing up an objective and common
assessment of the linkage between the various distribution
modes and the aids currently mobilised, as well as an
assessment of their respective efficiency.
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5.3.2.4 Banking accessibility mission
5.3.2.4.1 Framework of the mission
The banking accessibility mission assigned to La Poste is
performed via the Livret A passbook savings account.
It should not be confused with the right to open a bank
account, which does not cover savings products. This right
only concerns a bank account and does not include credit
institutions.
Up until 1 January 2009, La Poste, the Caisses d’Épargne
and, under specific conditions, Crédit Mutuel, were the
only institutions authorized to offer Livret A passbook
savings accounts. The French Economy Modernization
Act of 4 August 2008 brought this situation to an end, and
deregulated Livret A passbook savings accounts, which
all banks can now offer to their customers, subject to
having signed an agreement with the French government
beforehand, and specifically complying with the one account
per person rule.
La Poste carries out its banking accessibility mission, a
public service and public interest mission, assigned by
the French Act of 2 July 1990 as amended, in a unique
manner, through La Banque Postale, its subsidiary, a credit
institution (Article L. 518-25-1 of the French Monetary
and Financial Code). In addition to the rules governing
the operation of the Livret A passbook savings account,
La Banque Postale is also required to comply with specific
obligations codified as part of the French Monetary and
Financial Code:
La Banque Postale is required to open a Livret A
passbook savings account for any individual, any
association mentioned in Article 206-5 of the French
General Tax Code or public housing bodies so requesting
it;
the minimum amount for cash withdrawals or deposits
is set at €1.50;
La Banque Postale is required to authorize, on the
Livret A passbook savings accounts, in the terms and
conditions defined in the General Regulations, all of the
transactions listed by the order of 4 December 2008 from
the minister responsible for the economy, in particular
housing revenue paid by public bodies and payments and
withdrawals of certain transactions (social minimums,
income tax, various duties, gas and electricity bills,
housing associations, etc.).
Of La Banque Postale’s Livret A passbook savings accounts,
55% or some 11 million accounts, have an average balance
of under €150. However, these Livret savings accounts,
which only total 0.5% of deposits, have a significant
management cost because they are among the most used
accounts, with 46% of transactions being carried out on
Livret A passbook savings accounts.
La Banque Postale has also begun, as part of the Act of
9 February 2010 to combat and prevent excessive debt and
encourage micro-loans.
That is why the French Economy Modernization Act provided
for special remuneration for La Banque Postale.
5.3.2.4.2 Financing
The additional costs incurred by La Banque Postale as a
result of its obligations under the banking accessibility
mission are ”compensated in proportion to the general
economic interest service missions assigned to this
establishment” as provided for by Article R. 221-8-1 of the
French Monetary and Financial Code.
The amount of the compensation for the period between
2009 and 2014 was determined in a decree issued on
4 December 2008. A decree issued on 29 July 2013 amended
the compensation amount for 2013 and 2014, and cancelled
the decree of 4 December 2008. The new decree provides
for an annual contribution of around €246 million in 2013
and €242 million in 2014.
This compensation comes on top of the remuneration it
receives, like other establishments, for the distribution of
Livret A passbook savings accounts.
On 23 January 2013, the European Commission approved
the public service compensation bestowed upon La Banque
Postale in order to guarantee banking accessibility
("Livret A" passbook savings accounts). The European
Commission estimated that the public financing granted
by France to La Banque Postale from 2009 to 2014 that was
intended to improve banking accessibility is in compliance
with the EU regulations regarding government assistance.
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Overview of business activities Social and Environmental Responsibility5
Since 2003, the Group has shown its continued commitment
to social and environmental responsibility (CSR—Corporate
Social Responsibility).
Le Groupe La Poste's sustainable development approach,
which was launched as part of the 2003-2007 "Performance
and Convergence" strategic plan, was continued and
reaffirmed in each of the subsequent plans. CSR is at the
heart of the strategy for the period between 2014 and 2020,
which was previewed in July 2013.
The maturity acquired by the Group entities has enabled the
Group to clarify the social and environmental responsibility
goals and action priorities for 2015 as early as 2011. It
is within this context that the Group Corporate Social
Responsibility Department was created in early 2011,
and that the Group's corporate social and environmental
responsibility policy was defined and approved by the
Executive Committee in September 2011. This policy was
updated at the time of the new 2014-2020 strategic plan.
Over the period between 2014 and 2020, Le Groupe La Poste
aims to become a major player in the distribution and local
services market. It will therefore support changes in the
regions, and will contribute to meeting the challenges
posed by changes in the environment and society, alongside
all the operators involved. This assumes making two major
commitments:
the first commitment is to set an example by providing
a responsible offering, i.e. an offering that is useful and
accessible to all, neutral in terms of environmental and
societal consequences, and by reducing the negative
external effects (1) of its activities.
the second is to help regions pursue economic
development that is in the general interest, and
contributes to independence and social inclusion and
improves the quality of life.
With respect to the environment, by 2020, Le Groupe
La Poste undertakes to:
contribute towards the transition to a low-carbon
economy: French law provides for reducing greenhouse
gas emissions by a factor of four between now and 2050,
by lowering overall energy consumption and increasing
the share of renewable energy. Direct (2) greenhouse gas
emissions (GHGs) will be reduced by 20% by 2020 (in line
with the International Post Corporation (IPC) targets).
Full carbon offsetting in the Mail and Parcels offerings
will be sought throughout the period;
turning its waste into a resource. Between now and 2020,
in the Group:
- 80% of Waste From Electric and Electronic will be
recovered for reuse,
- 100% of hazardous waste will be processed in
accordance with applicable regulations,
- 80% of used office paper of Group Departments will
be collected for recycling.
In terms of employee relations and work conditions, the
Group's goal, beyond the inherent objective of respecting
human rights, wherever it operates, is to positively
contribute to the quality of life of its employees by better
taking into account their personal environment and
aspirations to participate in the life of the company.
In addition to the "Human Resources" commitments and
action plans (see Chapter 17), the Group will offer post
office workers the opportunity to commit to social solidarity
initiatives alongside it, and will supplement social outreach
measures aimed at marginalized postal workers.
At the societal level, the Group will pursue its economic
development initiatives, which are aimed at promoting
employment and sustainable development in the French
regions, and help marginalized people gain access to
essential goods (3).
(1) Negative external effects: social costs (dangerous work with no offsetting benefits, professional mobility, and insecurity, etc.) or environmental costs
(fumes, particles, toxic clouds, noise, congestion, damage to, extinction of natural species, and soil and subsoil depletion, etc.).
(2) Direct and indirect emissions linked to the consumption of power, steam, heating and cooling in the transportation and building sectors.
(3) Essential goods: food, healthcare, housing, the supply of energy and water for the primary residence, telecommunications (telephony and Internet),
transportation, culture.
5.4 Social and Environmental Responsibility
5.4.1 A CSR policy integrated into the Group's strategy
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5.4.2 Governance of the organization
5.4.2.1 Governing bodies
In order to embed CSR at all decision-making levels of the
Company, the Group has several governing bodies. At the
highest level, the Quality and Sustainable Development
Committee, which is part of the Board of Directors (see
Chapter 16, Section 16.4.3), reviews the strategic priorities
and monitors their implementation.
The Group’s Chief Executive Officer is the CSR contact for
the Executive Committee. A progress update on the roll-out
of CSR in the Group is given to the Executive Committee
every year.
The Group has drawn up a framework including the
definitions and guidelines of ISO 26000 certification. This
assessment is renewed every two years, and enables the
incorporation of ISO 26000 principles by each Group entity
and the roll-out of the CSR policy to be monitored. The first
roll-out assessment was presented in the first half of 2013.
The Group's CSR Department coordinates a Business Line
CSR Committee that brings together each Business Line
and the holding companies for the Group's subsidiaries.
This Committee monitors the roll-out of action plans within
the Group, and incorporates CSR concerns into business
practices of the functional operating segments.
Each Business Line and the most important subsidiaries
have added a CSR Department to define their policy and
oversee deployment of operational action plans, and in
this way integrating responsible development into their
processes and management.
Lastly, at a local level, CSR contacts have been designated
by each of the Business Lines and, when justified by their
size, the Group subsidiaries. They are supported in their
work by the 22 Regional Representatives, who coordinate
initiatives between the Business Lines, subsidiaries' and
local stakeholders’ local operations (see Section 5.4.7.3).
5.4.2.2 CSR in collective performance indicators, roadmaps and decision-making processes and controls
The including of responsible development criteria into the
Group’s management system is now a reality.
The Group's CSR targets are monitored on a regular basis
in the Chairman’s management indicators and during
performance reviews with each of the operational directors
on the Executive Committee.
All the managers, from members of the Executive
Committee to team leaders, have at least one CSR target
in their roadmap: Quality of life at work. This in turn has an
impact on their variable compensation.
At La Poste, the profit-sharing bonus, which has been
distributed to La Poste employees since 2010, specifically
includes a criterion known as “progress in terms of the
accessibility of buildings for people with reduced mobility
at facilities open to the public in the asset portfolio",
and a criterion known as "total emissions offset via the
carbon offset program" for companies within La Poste's
consolidation scope.
The economic, social and environmental impacts are
analyzed when major projects in terms of their amount or
the issues involved are assessed.
CSR has been included in the Group's internal control
system and risk management system: a legal CSR
framework has been drawn up, and the annual self-
assessment matrix includes questions on CSR.
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5.4.3.1 A Group initiative
In April 2011, the Executive Committee adopted an ethical
system. This system is based on:
a Reference Guide to Professional Ethics specifying
all of individual and collective rules of conduct. Its
dissemination, which began in December 2011, was
completed in 2013. This Reference Guide is available
online on La Poste’s Intranet site (in French and English),
and on Le Groupe La Poste institutional website for
external stakeholders;
a Business Ethics Committee chaired by the Group's
General Representative, and which includes the Group,
Business Lines and Poste Immo's corporate ethics
officers, as well as the officers from the functional
Departments. The Business Ethics Committee met twice
in 2013, in order to review the progress of the roll-out
system, the results of the first ethical survey set up in
2012, and the anti-corruption action plan;
a customized support system (or warning system), in
order to answer employees' questions, enable them to
escalate any serious breaches of the guidelines that they
may observe, where applicable, and request mediation
in certain cases;
a network of ethical supervisors composed in particular
of a Group compliance officer, four Business Line
compliance officers and compliance officers in the main
subsidiaries (in particular Poste Immo). They meet once
a quarter, in order to discuss matters to be addressed,
and to co-construct staff awareness-raising tools
(Intranet, monthly newsletter, and ethical management
training module, etc.). The issues addressed in 2013
were corruption and conflicts of interest.
a survey for measuring sensitivity to ethical issues, and
employees’ level of understanding and endorsement of
corporate ethics (1).
The first annual report on professional ethics for the 2012
financial year was presented to the Executive Committee
and the Board of Directors.
5.4.3.2 An approach promoted in the Business Lines and the subsidiaries
The approach was promoted by the Business Lines in 2013:
local communications were organized in Mail, and
improved employees’ overall awareness of the Reference
Guide (38% in 2012, and 60% in 2013);
in Parcels-Express, staff are reminded of the ethical
guidelines during every assessment campaign at
ColiPoste. GeoPost continued to promote its Professional
Conduct Code for employees, by creating an ad hoc
section on its Intranet site. The French entities'
compliance officers met to discuss issues relating to
professional ethics (conflict of interest, and religion-
related incidents, etc.). In Europe, GeoPost subsidiaries
adapted their professional ethics guidelines to local
regulations;
at La Banque Postale, a film was produced and shown to
new hires, in order to boost endorsement of the Bank's
values by all the parties involved;
Retail Brand continued to increase the "Risk and Internal
Ethics and Professional Conduct Control" division's
level of professional expertise through producing new
relationship tools with facility directors. The Retail
Brand assessed breaches of business ethics rules, and
wrongdoing in order to improve prevention. Employment
training for bank advisors and branch managers has
been updated in order to take into account the most
recent regulatory developments.
two Ethical Committees are held at Poste Immo every
year. The Ethics initiative was also presented to all new
hires.
(1) The questionnaire was drawn up with the institut de sondage BVA (BVA Marketing and Opinion Insights) and le Cercle Éthique des Affaires (French Business
Ethics Circle) for use within the company, and with a sample of large companies in order for benchmarking purposes.
5.4.3 The Group's ethical approach
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5.4.4.1 Responsible service offerings
The Group is involved in designing more responsible
products and services for its 45 million retail customers
and 3.5 million corporate and professional customers.
5.4.4.1.1 Integrating CSR concerns from the
moment the products and service offerings
are designed
Le Groupe La Poste is committed to making its offering
available to everyone. Environmental, social and societal
goals are integrated into the different phases of preparing
and marketing new offerings. CSR guidelines are now used
by marketing managers.
The Green Letter, which was launched in October 2011,
will help reduce Mail's CO2 emissions by removing
air transport from the means of transport used in
Metropolitan France.
In 2013, all Mail and Parcels offerings were guaranteed
as carbon neutral. This proactive approach that consists
in measuring, reducing and offsetting carbon emissions
produced in the conception and execution of the service,
without resulting in additional charges for the customer,
represents a source of competitive differentiation. It
has been in place since 1 March 2012 for ColiPoste
and Mail, and since 1 July 2012 for GeoPost, for all
packages transported by GeoPost subsidiaries in France,
Germany, the United Kingdom, Belgium, Luxembourg,
the Netherlands and Switzerland. Since 1 July 2013, 10
new countries have joined the Total Zero compensation
programme. With a total of 17 countries this programme
covers 95% of the volumes transported by the Group.
La Banque Postale has requested that an ESG check-
list (1) aimed at guaranteeing the inclusion of 19 extra-
financial criteria covering design, distribution and
customer support, etc. be appended to each new product
file submitted to a review committee. It is also offering
its customers a full range of Socially Responsible
Investment (SRI) funds certified by Novethic and
Finansol.
By developing Recy’go, an offering involving the collection
and recycling of office paper, Mail has offered SMEs a
practice from which they were previously excluded due
to the low individual volumes requiring collection.
5.4.4.1.2 Improving customers' understanding
of the environmental impact of the offering
To inform consumers about their consumption choices,
and meet their expectations, Le Groupe La Poste has
designed calculators that also enable them to anticipate
new legislative measures (displaying the CO2 emissions of
transport services, and environmental labelling of products
and services, etc.). This eco-calculator, which was approved
by Bureau Veritas in 2011 and 2013, has been used to meet
the requests of Mail's key account and corporate customers,
while a mass-market version has been available online as
part of a dedicated website (www.objectifzeroco2.laposte.fr)
since November 2012.
Tools enable users to calculate a shipment's carbon
footprint. Customers may also ask their sales contact
person for a calculator.
ColiPoste provides retail customers with a multi-criteria
comparison tool via its www.colissimo.fr website; this tool
enables individuals to estimate the main environmental
effects of an online purchase compared with a "physical"
in-store purchase.
5.4.4.1.3 Improve consumer access
to the offer
The third line of action for the Group consists in simplifying
access to its service offerings for marginalized customers
segments (i.e. the disabled, migrants, persons experiencing
financial difficulties, or who find it hard to read and write,
etc.), by providing simple and accessible information, a
customized welcome and support with the initial use of, or
during the service (loan support).
The Retail Brand has developed an active partnership policy
with four national not-for-profit organizations (the French
Red Cross, FNARS—Fédération nationale des associations
d’accueil et de réinsertion sociale [National Federation of
Host and Social Reinsertion Organizations]), Unis-Cité
and FACE (Fondation Agir Contre l’Exclusion [Act Against
Exclusion Foundation]), and with local organizations that
support vulnerable customer groups. The aim of these
partnerships is to promote greater understanding of postal
processes (understanding forms, and assistance with
drafting documents, etc.) and increased use of automated
services. Almost 150 partnerships were entered into in 2012;
they involved social mediation initiatives, and training and
interpretation services to help the customers of 300 post
offices located in underprivileged urban areas in 64 French
departments.
5.4.4 Customer responsibility
(1) Environmental, social and governance criteria.
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La Banque Postale focuses on designing an offering
available to the largest possible number of people
by applying rates that are in keeping with its banking
accessibility public service mission. In addition La Banque
Postale has committed to combating and preventing
overindebtedness by offering customers a range of
responsible consumer loans (conditions for granting
credit and assistance) and to promoting micro-loans (see
Section 5.1.3).
In September 2012, La Poste signed a partnership with
the OFII (Office français de l’immigration et de l’intégration,
the French Office of Immigration and Integration) to help
migrants gain access to banking and postal services.
Furthermore, as part of its partnerships with France
terre d’asile and the French Office for Immigration and
Integration, which are aimed at improving refugees and
asylum seekers’ access to postal, banking and telephone
services, 90 flagship post offices were identified and
provided with training on how to receive and service these
population groups.
5.4.4.1.4 Improve service rendered
to customers
The fourth line of action is developing the quality of service
rendered to customers (see the service culture process
presented in Section 5.5.1.3).
5.4.4.2 Making buildings open to the public accessible by 1 January 2015
In the accessibility area, the group has plans to make its
premises that are open to the public (1) (primarily post
offices) accessible by 1 January 2015, the cut-off date
determined by the government.
At the end of 2013, approximately 82% of the directly owned
facilities were accessible to persons with reduced mobility
(PRM). Since 2007, 1,379 post offices have been rendered
PRM-compliant, including 327 in 2013. The accessibility
assessment for the portfolio of rented properties was
completed in September 2013: 50% of these facilities are
accessible. Poste Immo is continuing its plan to inform and
raise the awareness of institutional and private landlords
for facilities in the rented portfolio. The implementation of a
specific plan for local authority landlords (66% of landlords)
is in the process of being finalized.
In addition, 148 automated bank tellers located outside post
offices were upgraded to PRM standards in 2013, raising the
compliance of the installed automated bank teller base to
4,524, or 91.2% of the installed base.
Retail Brand includes all aspects of CSR concerns
(accessibility, eco-designed materials, reduction of energy
consumption, reception, service efficiency and quality of
advice) in its global approach to transforming the post
office network into modern service areas (Customer Service
Areas).
(1) With the exception of properties destined for disposal.
5.4.5 Social responsibility
5.4.5.1 Compliance with human rights and international agreements
In the Group's opinion, taking human beings, their freedom,
differences, quality of life, and health into consideration in
every decision is a cornerstone of responsible development.
All of the Group companies have policies and practices
aimed at ensuring respect for equality of opportunities
and the absence of discrimination, as defined in the
International Labour Organization agreements. The same
applies to respect for people, trade union freedoms, and the
prohibition of child labour and forced labour.
These factors make up an integral part of the Group's CSR
framework and were analyzed during the biennial review
initiated in 2012.
Regarding the respect of human rights, compliance
monitoring focuses primarily on combating discrimination
and promoting equal opportunity (see Chapter 17), well-
being at work (occupational accidents and illnesses,
MSD, psycho-social risks) and combating corruption.
Combinating corruption constitutes an integral part of the
conduct of business procedures (see Section 5.4.3).
La Poste has a specific plan to confront natural disasters
in French territory as part of its public service obligations,
along with an assistance plan for postal workers affected
by these phenomena.
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5.4.5.2 Make Quality of life at work a priority
As a cornerstone of the Group's strategy, Quality of life at
work is the subject of a commitment and action plans. This
commitment is covered in Chapter 17, Section 17.5.
5.4.5.3 Responsible management of change
Responsible management of change is based on the desire
of real quality of employment and life at work the concern
for developing employability, allowing for functional mobility.
The method for implementing organizational changes was
negotiated in early 2012, tested for six months and followed
by full-scale adoption in November 2012. A warning
system was implemented to identify the occurrence of any
deviations from targets in the field.
In the area of the development of employability for staff,
Le Groupe La Poste enhances its processes for developing
skills. The commitment to at least one training program per
year and per employee is included in operational targets for
the various Business Lines and subsidiaries.
5.4.5.4 Developing a more responsible management
Responsible management includes managerial identity
(a manager who is both efficient and responsible for the
consequences of his/her decisions, innovative and true to
the Group's values, cooperative and attentive to everyone,
brave and respectful of women and men), and economic,
social, environmental and societal dimensions in the
decision-making process, as well as paying attention to
spreading the benefits evenly among stakeholders who are
affected by change.
Its implementation requires a change in behaviour. To
support the implementation process, Le Groupe La Poste
calls upon its managers to discuss day-to-day responsible
management practices at the “Meetings for Responsible
Development” platform. 13 meetings were held in
metropolitan France. Drawing on this experience, the Group,
working together with French philosopher Yves Michaud,
recorded a significant portion of the lessons learned in
a work entitled "What Is Responsible Management?",
4,000 copies of which were distributed.
5.4.6.1 Preventing environmental risks
Given its business activities, La Poste is not responsible for
any high-risk environmental impact.
Due to changes in the legal and regulatory provisions,
including several major decrees and decisions that were
issued in 2013, Le Groupe La Poste monitors and analyses
obligations that may affect its business activities. These
obligations may affect customers or the regions where
Le Groupe La Poste operates, and require the Group to
adapt.
In addition to this monitoring, Le Groupe La Poste
contributes, alongside institutions, to the definition of
standards in areas of significant impact for the Group.
Since 2013, it has been a founding member of the Institute
for the Circular Economy to define the institutional
environment favourable to the development of this new
more environmentally-friendly economy.
5.4.6.2 Reducing the environmental impacts of transport
La Poste (1), where over 1.6 billion km are travelled per year
(excluding exports), uses a fleet that includes combustion
vehicles (11,938 motorbikes, over 50,000 light vehicles
and 328 heavy goods vehicles) and electric vehicles
(16,236 electric bicycles, 1,041 quadricycles and 3,677 light
vehicles). It pays particular attention to the environmental
impacts of its fleet and to those of its transport sub-
contractors.
In 2013, La Poste (1) emitted 581,532 tons of greenhouse
gases relating to its transport activities, i.e. a decrease of
7% compared with 2012 at similar consolidation scope,
despite a 0.82% increase in ColiPoste’s traffic and a 1.09%
increase in the number of Mail distribution points.
5.4.6 Get involved to preserve the environment
(1) Scope: La Poste, La Banque Postale, Mediapost SAS.
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To reduce the environmental impact of its fleet, its direct
CO2 emissions and atmospheric pollution, La Poste relies
on several drivers:
technological, by pursuing the integration of more
environmentally friendly vehicles within its internal
fleet. The replacement of internal combustion vehicles
by electric vehicles constitutes an important contribution
to reducing CO2 emissions, emissions of air pollutants
(particulates, NOx) and noise pollution. This is
complemented by a steady change in the fleet to bring it
up to the latest European standards;
use of lower impact means of transport. Mail is reducing
its use of air transport and is developing the use of rail
notably combined road-rail transport (swap bodies).
In 2013, 12 swap body transport links were in service.
Every swap body connection replaces a semi-trailer road
transport link;
logistical, by optimizing rounds and loads. At the end of
2013, 69% of ColiPoste’s national links used the unsorted
delivery method compared with 67% at the end of 2012;
a behavioural driver, by providing environmentally friendly
driving training to its employees (79,195 employees
trained since 2007).
The specifications for the Group’s purchase of sub-
contracted transport have included environmental criteria
fuel consumption and European standards. The process
continues with the assessment of other criteria such as
the age of equipment and environmentally-friendly driving
training. Since 2013, Mail has asked its service providers
for data on unit consumption for vehicles used in order to
more precisely manage its own transport service related to
CO2 emissions.
Furthermore, La Poste is currently determined to increase
its expertise relating to understanding and managing
environmental impacts other than CO2. In this context, Mail
signed a partnership agreement with the France Nature
Environnement organization in 2013, in order to work on
issues relating to atmospheric and noise pollution in the
transport field.
5.4.6.3 Reducing the environmental impacts of buildings
Significant changes in French environmental regulations
have led to profound transitions and real estate sector
practices (construction, renovation and operations).
With a portfolio of 11,847 managed properties, i.e.
6.7 million sqm, 3.97 million sqm of which are wholly-owned
(see Section 5.1.5), Poste Immo is taking action to reduce
energy consumption and CO2 emissions. In late October
2013, Poste Immo signed the Energy Efficiency Charter for
Public and Private Office Buildings, and is developing its
initiatives based on several drivers:
ensuring the right scale of its real estate assets and
ensuring that they meet customer requirements and
uses;
construction of buildings using best market practices,
with a BBC/HQE (Low Energy Consumption Building/
High Environmental Quality) level and ensuring the
environmental efficiency of the building through the
progressive addition of green leases. Since 2010, six
low-energy buildings have been delivered in conjunction
with the introduction of green leases (1). The signing of
green leases was intentionally expanded in 2013, via
the signing of 182 green leases in addition to the seven
leases already in effect. At the end of 2013, green leases
signed covered 36 buildings;
developing renewable energy (RE) sources for
construction projects is being systematically studied.
Furthermore, Poste Immo rolled out 42 solar power
installations, which were executed as part of a partnership
(representing 27,733 sqm of solar panels) via its Arkasolia
subsidiary at the end of 2013; 22 of the installations
(representing 17,703 sqm) were installed in 2013;
improving the energy performance of the existing
portfolio: this is a major challenge for La Poste given
the size of the portfolio. Achieving better energy
performance occurs through two main channels:
performing renovation work and processes involving the
use and operation of buildings.
(1) Decree No.2011-2058 of 30 December 2011 requires the signing of an environmental appendix for leases involving premises of over 2,000 sqm for offices
or retail use. The decree's provisions apply to leases signed or renewed starting as 1 January 2012 and, as from 14 July 2013 for all leases in force.
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5.4.6.4 Reduce the environmental impacts of information systems
Le Groupe La Poste has launched a program to reduce
the CO2 emissions relating to its information and
communication systems. As part of the Group's responsible
purchasing policy, specifications aimed at promoting "Green
IT", namely environmentally-responsible information
and communication systems, are now added to the
specifications for the suppliers involved. Requirements are
mainly based on eco-labels and energy performance of IT
and telecommunications equipment.
5.4.6.5 Preserving biodiversity, optimizing resource use and waste management
Because of the nature of its business activities, Le Groupe
La Poste is a significant consumer and carrier of paper.
Environmentally responsible paper use represents a
challenge for the Group. In 2013, La Poste, La Banque
Postale and Mediapost consumed 17,600 tons, of which
97.5% was environmentally-responsible paper (an
increase of +3.3 points compared with 2012). All entities
are encouraged to favour environmentally responsible
paper for their own purposes (i.e. recycled paper, labelled
environmentally friendly or from sustainably managed
forests).
Launched at the beginning of 2012 with micro-businesses,
SMEs, and local authorities, Le Groupe La Poste's office
paper collection and recycling solution, Recy'go has now
rolled out across France and has met with promising
success. 2,077 companies have already chosen this Mail
offering, or that of its subsidiary, Nouvelle Attitude, together
with a portion of Le Groupe La Poste's internal facilities,
i.e. over 8,277 tons of paper in volume terms, 2,987 tons
of which are collected by postmen. Bolstered by this first
success, the Mail division envisages expanding its offering
to other sectors, such as ink cartridges or professional
clothing, for example.
Regarding water resources, Le Groupe La Poste does not
use water in its production processes (with the exception of
the printing works of the Service national des timbres-poste
(National Service for Stamps), which is ISO 14001 certified).
Water consumption is related to the occupation of premises
(bathrooms, food service, etc.). Reducing consumption is
included in cost reduction plans and awareness-raising
campaigns on eco-friendly practices.
Le Groupe La Poste's business activities generate a wide
variety of waste (including waste from electrical and
electronic equipment, used office paper, packaging waste,
cardboard boxes, pallets and plastic). The Group is gradually
implementing action plans for sorting, treating and
recycling its waste, for instance, on the Mail and ColiPoste
Industrial Platforms, where the quantities involved allow
for the optimization of waste management. The ISO 14001
certification of the environmental management system
on the 15 ColiPoste platforms also improved waste
management, reduced energy and water consumption and
prevented pollution risks.
Group sites in France are implementing, when necessary,
actions to comply with new obligations limiting the use of
nocturnal lighting for buildings.
5.4.7 Dialogue with stakeholders
Particular attention is paid to dialogue with the primary
stakeholders, notably consumers, local elected officials,
employees, as well as entities in the customer value chain,
sub-contractors, and suppliers.
5.4.7.1 Consumers
La Poste has been consulting with consumer associations
since 1989. This is an essential component of La Poste’s
consultation with its stakeholders. The Le Groupe
La Poste Mediator oversees a consultation process
with 17 recognized national consumer organizations,
which originate from three main movements: the family
movement, the labour movement and the specialized
consumer movement.
There are two levels of consultation: the national level
(including meetings with the Group's Chairman and Chief
Executive Officer) and the local level (through the Group's
Regional Representatives).
National consumer associations play a key role through
participation in various activities of the Company. For
example, suggestions from the annual consumer claims
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meeting, co-hosted by the Quality Department of the
Group, brings together, La Banque Postale, Chronopost and
national consumer associations, are taken into account in
developing changes for handling and responding to claims:
changes to the paper claim form, and simplification of the
Customer Service area on www.laposte.fr.
The associations have the opportunity to visit several
operational premises, such as the consumer service call
centre, the platform of the TGV Postal (fast train for mail),
the Parcels and Mail Platforms.
5.4.7.2 Staff
2013 was characterized by a wide-ranging staff consultation
process regarding the strategic project, in which
150,000 people took part. The year was also particularly
eventful from the standpoint of dialogue with employees,
and included the signing of several agreements. Detailed
information on actions in this area is presented in
Chapter 17.
5.4.7.3 Local elected officials
Aside from its legal obligations relating to regional planning
and development, Le Groupe La Poste is very attached to the
idea that social dialogue and consultation are at the heart of
discussions with elected officials. Le Groupe La Poste, and
more recently La Banque Postale, are historic and trusted
partners for the local public sector.
To jointly develop solutions for postal service coverage
that meets the needs of the population, Le Groupe
La Poste is pursuing collaborative work with regional and
national governance bodies implemented under the local
postal coverage agreement and partnerships with the
French Mayors Association (see Chapter 5, Section 5.3).
A new postal service coverage agreement for the period
between 2014 and 2016 was signed on 16 January 2014 by
La Poste, the French government, and the French Mayors’
Association. Furthermore, Le Groupe La Poste has signed
annual agreements with associations of elected officials
with the purpose of renewing partnerships based on the
goal of sustainable regional development.
In response to requests expressed by elected officials,
Le Groupe La Poste has established 22 regional offices
since January 2008, in order to strengthen its regional
roots. The regional officer henceforth serves as the Group's
representative for the region in question. Serving as a single
entry point, this officer is also the preferred contact for
elected officials and regional socio-economic stakeholders.
La Banque Postale, which has been rolling out a new
financing model for local authorities since 2012, extended
its offering of short, medium and long-term loans to public-
private companies, local public enterprises, and public
healthcare institutions in 2013, and will offer other services
in the future.
2013 was marked by a broad consultation with elected
officials on the strategic product.
5.4.7.4 Suppliers
By adhering to the United Nations Global Compact in
February 2003, and to the Intercompany Relations Charter
of 28 June 2010, Le Groupe La Poste has committed to
respecting and promoting principles pertaining to human
rights, labour rights, the environment, combating corruption
and responsible purchasing. Since January 2008, Le Groupe
La Poste has asked its suppliers to make a commitment
themselves and work alongside it via adhering to the
Responsible Purchasing Charter, which requires them to
comply with the same principles.
With more than 30,200 active suppliers, La Poste has
implemented a broad array of tools that enable it to
incorporate responsible criteria for selecting the products
and services purchased into its purchasing process and
across all purchasing categories that it handles. All areas
of purchasing are now covered.
Furthermore, La Poste seeks to ensure that all companies
have access to bid as vendors and suppliers to its contracts.
La Poste has therefore made its general purchasing terms
and conditions freely available for download on the www.
laposte.fr website, in the “Suppliers” area. It also publishes
all purchasing transactions involving amounts exceeding
the European threshold set out in the Official Journal of
the European Union (OJEU), as well as specific categories
of purchases, in the trade media. Additionally, since 2012,
the SME Pact site automatically transmits all purchasing
opportunities published on the website. Le Groupe La Poste
also endorsed in June 2010 the Intercompany Relations
Charter governing relations between major purchasing
decision-makers and SMEs. Buyers are reminded of the
terms of this Charter in the Procurement Ethics Guidelines.
Buyers are also informed of the existence of the Pas@Pas
platform (see Section 5.4.8.1), which offers vehicles to
publish their purchasing consultations for the sheltered
sector and the professional integration sector.
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5.4.8.1 Contributing to local economic development
Through its activities, the Group occupies a important
role in French regions. It plays an active role in regional
think-tanks and in developing their structural policies such
as the Regional Climate, Air, Energy Programs, Climate
Plans, Agenda 21, urban development plans, and local
accessibility plans, etc. La Poste brings its expertise on the
transportation of goods and people, and is specifically highly
committed to rolling out company and intercompany travel
plans (62 active plans at the end of November 2013). The
Group contributes to setting up structuring projects for the
territories and adapt its business activity.
La Poste is committed to promoting job growth in French
regions:
by facilitating the development of SMEs and participants
in the social and solidarity-based economy. A member
of the SME pact, it contributes to increasing their
number among its suppliers. La Banque Postale offers
professional micro-loans in partnership with Adie, in
order to help with company start-ups and handovers,
and also offers loans and factoring services to SMEs;
by taking part in setting up the Pas@Pas organization,
and jointly designing the shared Internet platform. "Pas@
Pas" puts buyers from member companies in direct
contact with 4,000 companies in the protected work and
professional reinsertion sectors;
Le Groupe La Poste has continued its actions to raise
awareness amongst buyers on charitable purchases
(purchases from the disabled and sheltered sectors)
and is looking to increase the proportion of purchases
from these sectors. La Poste wants to increase the
share of its purchases that is entrusted to these sectors
(€13,971 million for La Poste in 2013).
Thanks to the resources generated through carbon
offsetting, Le Groupe La Poste is developing projects aimed
at reducing greenhouse gases and promoting economic and
social development in the French regions.
5.4.8.2 Contributing to the development of new areas
Human capital, the number of customers, local ties and the
range of its business activities make Le Groupe La Poste
a major player in environmental, economic and societal
changes.
5.4.8.2.1 Developing solutions for sustainable
mobility
This positioning confers a training role to the Group in
favour of multi-player innovative projects, in particular in
the development of sustainable mobility. In this manner, the
Group has devoted considerable resources to developing a
fleet of more eco-friendly vehicles.
2011 was characterized by the pooled order for electric
vehicles led by the Group's Chairman, which aimed to
structure the demand for electric vehicles and contribute to
the emergence of an industrial sector. Following four years
of work organizing and bringing together the needs of public
corporations, roughly 20 private companies and local and
government authorities, an order for nearly 20,000 vehicles
was submitted, including 10,000 for La Poste. This approach
has led to the creation of a competitive and sustainable
offering contributing to the emergence of a French sector
for light utility vehicles.
Greenovia, the dedicated transportation and mobility
consulting subsidiary, demonstrates Le Groupe La Poste’s
commitment to contribute to discussions regarding new
forms of mobility: it aims to capitalize on the know-how
that the Group has acquired in the fleet management
area, in order to help companies and local authorities
with their transition projects, for instance, via optimizing
the management of vehicle fleets, assisting with the
introduction of electric vehicles, and developing innovative
solutions (car sharing, and car pooling, etc.).
Initially focused on training staff in eco-driving, Mobigreen,
a subsidiary of Mail, diversifies its business activities to
include the handling of electric vehicles and the integration
of road safety into its training.
5.4.8 Working towards the success of joint projects that contribute to the sustainable performance of the Company
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5.4.8.2.2 Developing recycling
La Poste is contributing to the creation of a connected
regional network to recycle office paper in the service of the
French regions and establishing a profitable, sustainable
economic model for creating local jobs. With Recy’go,
Mail has launched a program for the collection of office
paper for recycling from micro-businesses, SMEs and local
authorities and developed a project aimed at promoting
the socially inclusive and social economy, which sorts
and processes this paper (either via the Nouvelle Attitude
subsidiary, a company that aims to integrate people via
business activities, or via its local partners). Lastly, La Poste
has undertaken to have the paper collected by postmen
recycled, and to perform this recycling process in France.
5.4.8.2.3 Developing services for individuals
Furthermore, La Poste is entering the in-home services
market, either through its postmen (La Poste has
committed to contributing to the Silver Economy contract
co-launched by the Minister for Productive Renewal and
the Minister in charge of the Elderly) or by developing the
area of services for connected homes: the Newton project
relating to the services provided by postmen. La Poste
is trialing the delivery of medicines, meals and books (a
service that is called COHESIO).
5.4.8.3 The Group's and postal workers' commitment to social integration
5.4.8.3.1 The Group's commitment to social
integration
A policy of commitment to solidarity was adopted by the
Executive Committee. The initiatives aimed at social
integration focus on access to money, the encouragement
of social diversity, access to information, and access and
return to work. They rely on joint initiatives with volunteer
employees.
Beyond assuring access to its service offering to the
largest possible number, its objective of contributing to
social integration (see Section 5.4.4.1.3) is supplemented
by several initiatives. La Banque Postale supports the
Institut pour l’éducation financière du public (institute for
public financial education) not-for-profit organization, and
the Entreprise et Pauvreté organization whose purpose is
to encourage companies to develop experimental projects
that have an impact on reducing poverty and exclusion in
France. It also launched the “Appui” (“Support”) counselling
and banking and budgeting guidance platform in October.
La Banque Postale offers customers who are experiencing
temporary or recurring financial problems services like
banking and budgetary support, and an introduction to
partners, organizations and social services, in order to
expand access to entitlements and to socially inclusive
offerings. The aim is also to improve prevention of financially
fragile situations.
An online study was conducted to review solutions adopted
by people under financial constraints, through social
networks. The resulting information has served to enhance
the training of postmen in contact with these populations.
Le Groupe La Poste, together with TF1, Orange, L'Oreal,
Publicis and Manpower founded the Ba’-A’-ba Solidarité
intercompany organization that combats illiteracy and
provides access to basic skills within companies.
The Group is also involved within this framework in
promoting the employment of vulnerable persons by:
informing the most vulnerable young people and
job-seekers about its businesses, via: taking part in
local authorities’ job fairs, local integration plans, in
employment organizations’ plans (local missions, and
job centres);
developing mentoring and sponsorship programs for
young people and job seekers (signing of a partnership
agreement with the “Nos Quartiers ont des Talents” (Our
districts have talent) organization and with the French
“second-chance schools” in December 2012). La Banque
Postale founded the “L’Envol” (Take-off) organization in
2012. The aim of this organization is to help talented
students from low-income (urban and rural) households
to make their way through secondary and higher
education. The students are identified in junior high
school, and receive financial and cultural support from
volunteer postmen from Year 10 until their entry into a
higher educational stream.
Le Groupe La Poste supports its employees’ commitment to
solidarity: internationally, by financially supporting two non-
profit associations: Planète Urgence (since 2006) and France
Volontaires (since 2008). In 2013, 46 Group employees went
on humanitarian leave, bringing the number of employees
who have given their time and expertise to educational and
socio-economic missions to nearly 500.
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5.4.8.4 Contributing to research
For the Group, investment in CSR related research makes
it possible to open up new possibilities or solutions in order
to come into line in a timely and appropriate manner to
evolving lifestyle, organizational or technological trends.
Furthermore, by virtue of the range of its business activities
and its interaction with all segments of society, Le Groupe
La Poste represents an appealing testing ground for various
research groups.
The Group is party to major projects associated with
researching how to incorporate CSR into management
practices. It is in particular:
a founding member since 2007 of the French Network of
Responsible Managers, established by KEDGE Business
School (formally Euromed Marseille), which brings
together the sustainable development and diversity
managers of major groups on a monthly basis;
sponsor of the Paris-Dauphine Diversity Chair, which
finances research and provides diversity management
training. In 2013 the thesis focusing on "Diversity
policy as a driver of corporate change: strategic stakes
and socio-organizational dynamics" allowed Maria
Guiseppina Bruna to earn her doctorate.
La Poste is a founding sponsor of a new academic chair
on the circular economy, alongside the KEDGE business
school, SNCF, Orange and several NGOs. Launched
on 18 April 2013, the goal of this research chair and
management entitled "Business As Usual" is to rethink
existing economic models and to explore new ones.
5.4.8.5 Coach the international postal sector
In 2012, Le Groupe La Poste became the Chairman of the
sustainable development project group founded by the
UPU (Universal Postal Union, a specialized United Nations
agency for the postal sector, which includes 192 nations
throughout the world), and actively contributed to organizing
and carrying out seminars on every continent, in order to
raise awareness of sustainable development among the
various postal services, and help them design their own
strategies in this area. These seminars led to a sustainable
development action plan for each postal service involved.
Since 2004, the Group has accordingly co-financed and
organized 10 seminars in every region of the world.
Notably, in 2013, the Group provided training on sustainable
development to postal services in the Mediterranean
Region.
At the last UPU meeting, which was held in Doha (Qatar)
in the autumn of 2012, the postal services of 192 countries
adopted a project aimed at setting up a sector-based carbon
offset scheme called the "Postal Carbon Fund", on France’s
recommendation. This will be implemented in 2014.
Over a one-year period, one individual helped Correos,
the Costa Rican postal service, Correos, to roll out its
sustainable development plan. Then, over a period of six
months, this individual helped the Ecuadorian postal
service (Correos del Ecuador) to implement its sustainable
development strategy and vehicle plan, which resulted in a
call for tender for 200 electric utility vehicles for the delivery
of mail, express mail and parcels.
The Memorandum of Understanding (MOU) with Japan Post
Services, the Japanese postal service, was renewed for
three years in 2012, and focuses on several issues including
stamp-collecting and sustainable mobility. It will have led to
two meetings-seminars this year with an accent specifically
on the record of electric vehicles.
An MOU with Correios do Brasil, the Brazilian postal service,
was signed in 2012 and resulted in the first discussions
between both parties, including discussions relating to the
issue of sustainable development, in the autumn of 2013.
An MOU was signed with the Moroccan postal service in
March 2012, with a view to sharing practices, including
practices relating to gender equality and electric vehicles.
Several discussion seminars were held in 2013, and a
certification process by the Moroccan CSR Label, delivered
by CGEM (the General Federation of Moroccan Companies)
was launched in spring 2013 with the jointly-owned
subsidiary of the Moroccan postal service and GeoPost
(EMS Chronopost International Maroc-CIMA).
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Excellence in service relations and trust are key components
of the Group's quality policy. From 2009 to 2013, the policy
deployed through the "Service Ambition" strategic project
is organised around the following lines of action:
increasing trust via customer commitments;
simplifying the relationship by developing a Group
multi-channel system and pushing forward with service
innovation;
introducing a service-oriented attitude based on the
individual and collective commitment of all staff;
establ ishing customer-focused oversight and
management at all levels of the Company.
Le Groupe La Poste is conducting an initiative for sharing
best practices among major institutions and professional
associations dealing with quality and customer relations.
As part of the process for drawing up Le Groupe La Poste’s
new strategic plan, the 2014-2020 quality policy priorities
were defined with the Business Lines, and focus on three
main lines of action:
simplification;
personalisation;
consideration.
5.5.1.1 Customer service commitments and trust
Trust is at the heart of La Poste’s brand and the key
component in the service relationship. 70% of French people
said that they trusted La Poste in 2013 (1).
To maintain and strengthen this relationship of trust, since
2009, Le Groupe La Poste has implemented an ongoing
process of customer commitments:
provide customers with information on its services
annually;
provide access to information on mail delivery terms and
conditions;
offer a repeat delivery free of charge for registered
letters at the request of the recipient;
improve claims processing: send an acknowledgement of
receipt within 48 hours of a claim being dropped off with
a deadline for providing a response, in particular thanks
to the introduction of a Multi-Channel Customer Service;
cut waiting time in the 1,000 largest post offices
by customer visits to under five minutes for fast
transactions, such as mail or parcel drop-off/pick-up.
Results have been particularly positive and have been
improving from 2009 to 2013. In November 2013, the wait in
the 1,000 largest post offices was reduced by 3.30 minutes to
pick up or drop off mail and parcels, and 81% of customers
were serviced in less than 5 minutes (2). The commitment
compliance rate for Mail delivery remained above 95%
(with automatic cost indemnification for the customer in
the event that commitments are not met) and the goals
on commitments tied to claims processing were reached
again in 2013 thanks to action plans in the Business Lines
(continuing training in quality of responses, reinforcing
teams, simplifying online claims forms, the development
of online customer satisfaction initiatives, etc.).
(1) Ipsos/La Poste reputation barometer, consolidated results for 2013.
(2) Quality Inspections—La Poste Retail Brand Quality Department—December 2013 cycle.
5.5 Quality of customer relations
5.5.1 The Service Ambition project
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Overview of business activities Quality of customer relations 5
The customer commitment policy has been continuously
strengthened by Mail since 2010. Furthermore, the Retail
Brand has developed an ambitious programme for certifying
the service commitments of its post offices:
After an initial consultation launched in 2010 with all
of its customers and the publication of four Customer
Commitment Charters on 2 January 2011 covering each
customer segment, Mail relaunched a new consultation
with its customers in 2012 and published new customer
commitments in September 2013.
Based on a service commitment framework that was
jointly designed with customers and employees of the
Group, Le Groupe La Poste Retail Brand awarded an
AFNOR “Service Commitment” certificate to almost
1,400 post offices at the end of 2013. This means that
La Poste now offers the largest network of “Service
Commitment” certified branches in Europe.
5.5.1.2 Simplification of customer relations
In order to facilitate its relationship with its retail customers,
La Poste established the Group’s Multi-Channel Customer
Service. This offers customers a particularly simple and
direct access to all of La Poste’s services—notably for filing
claims—through:
a unique abbreviated phone number without a surcharge
(3631);
a specific consumer area on the homepage of the Group
website portal (www.laposte.fr);
and a unique postal address: Service Consommateurs
—99999 LA POSTE.
Today, traffic volumes reflect the success of this service,
which responds to real consumer expectations. Over
840,000 calls are made to the “3631” number every month,
over 122,000 unique visitors consult the Customer Service
area on the Internet every month, and over 21,000 paper
claim forms are sent to the Customer Relations Department
by mail every month, on average.
After being awarded the 2010 Customer Service award
the year of its launch, in November 2013, the Group’s
Customer Service received the "Customer Relations Centre"
NF Service certification for its Mail section for the third
consecutive year, and the telephone platforms of the Retail
Brand for the second time. Several customer relations
service innovation projects were standardised for general
use or enhanced in 2013: implementing WebCam access in
French language sign language for the hearing impaired,
adopting natural language functionality for the 3631 vocal
server, and automated continuous measuring accessibility
for Internet forms. Finally, an automatic semantic claim
assessment system has been trialled, in order to enable an
ongoing qualitative voice assessment of customer claims.
On social media, since July 2012, a team of Customer
Services call centre agents now intervenes alongside the
community manager of the Group to respond to customer
service requests and claims posted on the Group's Facebook
page and through the Twitter account @lisalaposte.
5.5.1.3 Service culture of Group employees
The service-oriented attitude is made up of a service
relations management model. It presents itself as a series
of key attitudes and skills built on La Poste’s values, which
make it possible to build long-term high-quality customer
relations based on the professionalism and commitment
of postal workers.
Built together with customers and the Group's employees,
the content of the service-oriented attitude is structured
around welcoming, listening, and efficiency. Based on
the principle of balanced attention, the "Service-oriented
attitude" approach rolls out these attitudes to the three
levels of service relations: between employees and
customers, between managers and employees and between
Business Lines. The development of a service culture has
been accompanied by a major training initiative (over
100,000 training sessions including service culture are
provided at the Group on an annual basis, including a 1.5-
day session for all newly appointed strategic managers).
Local meetings combining first-hand accounts from
companies and workshops, called “Instants Qualiades”,
are organised on the implementation of service-oriented
attitude.
Mail has integrated service-oriented attitude into the
management of its offices (notably through a "Service-
oriented attitude" memo resulting from customer
surveys) and the Customer Relation/Service-oriented
attitude function was implemented in its offices in 2013.
The Retail Brand has incorporated the "Service-oriented
attitude" approach into its service standards. ColiPoste
has incorporated "Service Culture" into its program aimed
at developing greater responsibility and independence
in teams' local initiatives. Lastly, after successfully
experimenting in five financial centres for over one year,
La Banque Postale has adopted the "Service-oriented
attitude" for general use in all financial centres as at
27 November 2013. A reference guide for service practices
was produced, drawing on input from customers and staff
in financial centres. La Banque Postale's "Service-oriented
attitude" approach was carried out in cooperation with
the Retail Brand in order to ensure optimal consistency
for the customer experience. In this way, joint work has
been carried out on simplifying the five customer service
itineraries: accessibility and first-line service, urgent
transactions, personalised service, property lending and
claims.
Registration document 2013 / LE GROUPE LA POSTE104
Overview of business activities Exceptional events5
Participative innovation, which is what really drives the
service-oriented attitude, continued to develop in 2013
within each Business Line, around Intranets dedicated
to the promotion and circulation of ideas, as well as
through challenges directed towards implementing the key
attitudes of service-oriented attitude. Over 12,318 ideas
were registered in 2013. The most outstanding ideas are
selected by a panel every year, and prizes are awarded to the
proponents of the best ideas by the members of the Group
Executive Committee and the Heads of each Business Line
at the "Trophées Qualiades" award ceremonies.
5.5.1.4 Management of customer relationship quality
Customer commitment performance measures feed into
scorecards at all corporate levels. They are monitored
every month by the Executive Committee, and are regularly
presented to the Quality and Sustainable Development
Committee of the Group’s Board of Directors and to
Consumer Associations at plenary meetings and working
groups on customer relations, in particular as regards
claims processing.
Measurements of customer perception have been
strengthened by standardisation of tracking for the satisfaction
rate and effort rate. Waiting time measurements in post offices
are based on a significant volume of "mystery" visits (40,000
per year in the 2,000 most important post offices).
Customer commitments pertaining to the reduction of
post office waiting times made up an integral portion
of calculating the employee incentive-based pay for all
employees of La Poste.
The Group’s Quality Department backs up and supports the
Group’s Business Lines and support services by choosing
benchmarks and obtaining various quality certifications (e.g.
ISO and service) or certificates of excellence.
La Poste contributes to the development and dissemination
of quality management best practices through its
participation in quality associations (e.g. Chairmanship
of Anfor’s “Management & Services” Committee, of the
Innov’Acteurs association, AFQP—Association France
Qualité Performance, etc.), its partnerships with the leading
standard setting bodies and universities, the intercompany
associations it coordinates (e.g. Best Practices ISO or
Club Benchmark EFQM) and a very active presence on the
Board of Directors of service professions associations and
customer relations associations (e.g. Association Française
de la Relation Client, Association pour le Management de
la Réclamation Client, Institut Esprit Service). In this area,
Le Groupe La Poste was recognised for the quality of its
Chairmanship of the AFNOR commission that published the
first worldwide standard for "online consumer opinions" in
July 2013 and for the coordination of work conducted at
the European level for draft text on "service excellence
systems". In addition, Le Group La Poste held the
Chairmanship for the first edition of La Fête des Services,
a service innovation competition launched within the
framework of the National Services Commission.
5.5.2 External recognition of the customer relationship quality
5.6 Exceptional events
5.7 Dependence on patents
Not applicable.
Not applicable.
105Registration document 2013 / LE GROUPE LA POSTE
6Simplified organization chart
Registration document 2013 / LE GROUPE LA POSTE106
Simplified organization chart 6
The Group is structured around the five operating segments
described in Note 5 to the consolidated financial statements
(income statement and main elements of the balance
sheet). Each operating segment, with the exception of the
Banking activities segment, comprises a division of La Poste
and a top level subsidiary, with each first level subsidiary
itself having several subsidiaries listed in Note 41 to the
consolidated financial statements.
A large majority of the Group’s debt is held in Le Groupe
La Poste’s accounts.
BusinessLine
Secteursd'activité
Units of La Poste
First level subsidiary
Mail La PosteMail SofiPost
GeoPost
Poste Immo
La Poste Télécom (2)
Véhiposte
Secteursd'activité
Parcels/Express La PosteParcels
Secteursd'activité
Banking Activities La PosteFinancial Services
CNP
Secteursd'activitéReal Estate La Poste
Real Estate Division
Secteursd'activité
La Poste Retail Brand La PosteRetail Brand
Secteursd'activité
OtherLa PosteSupports
and registered offices
(20.15%)
La Banque Postale
La Poste
(1)
(1)
(1)
(1)
(1)
(1)
(100%)
(100%)
(100%)
(100%)
(51%)
(100%)
(1) See detail of each operating segment's subsidiaries in the scope of consolidation presented in the consolidated appendix.
(2) Joint venture owned together with SFR.
Percentage: of ownership interests (%).
107Registration document 2013 / LE GROUPE LA POSTE
Simplified organization chart 6
The main second or third level subsidiaries in the Mail, Parcels-Express and Banking activities segments are the following
(with percentages of the Group’s interest):
DOCAPOST(100%)
Desktop publishing Logistic
VIAPOST(100%)
Marketingcommunications
MEDIAPOSTHolding(100%)
Internationalmail
ASENDIA(50%)
SofiPost(Mail)
Percentage: of ownership interests (%).
CHRONOPOST(France)
(100%)
EXAPAQ(France)
(100%)
DPD Germany Entities
DPD UK Entities
SEURSpain Entities
GeoPost Intercontinental
Entities
DPD GeoPost Gmbh (100%)DPD Vetriebsgesellschaft (84%)DPD Aschaffenburg (84%)DPD Betriebgesellschaft (84%)DPD Delicom (84%)
GP UK Ltd (100%)Interlink Express Parcels Ltd (100%)
SEUR GeoPost (92%)Menexpres (92%)SEUR International (92%)SEUR SA (59%)
DPD laser (75%)
GeoPost(Parcels-Express)
Percentage: of ownership interests (%).
Registration document 2013 / LE GROUPE LA POSTE108
Simplified organization chart 6
Sopa
ssur
e(5
0%)
CNP
(20,
15%
)
LBP
Prév
oyan
ce(5
0%)
LBP
Cons
eil
en a
ssur
ance
s (1
00%
)
LBP
Assu
ranc
eIA
RD
(65%
)
LBP
Assu
ranc
essa
nté
(65%
)
LBP
Asse
tM
anag
emen
t(1
00%
)
LBPS
AM(1
00%
)
Tocq
uevi
lleFi
nanc
e(9
2%)
LBP
(99,
99%
)
SF2
(100
%)
SCI
LBP
Gest
ion
Priv
ée(1
00%
)
CRSF
DOM
(100
%)
CRSF
Mét
ropo
le (1
00%
)Te
rtia
ire S
t Rom
ain
(100
%)
Insu
ranc
eR
etai
l Ban
king
/ L
endi
ngAs
set M
anag
emen
t
(50%
)
(36.
25%
)
LBP
Colle
ctiv
ités
loca
les
(65%
)
LBP
Créd
itau
x en
trep
rise
s(1
00%
)
LBP
Fina
ncem
ent
(65%
)
La B
anqu
e Po
stal
e (
Ban
king
Act
iviti
es)
Perc
enta
ge: o
f ow
ners
hip
inte
rest
s (%
).
109Registration document 2013 / LE GROUPE LA POSTE
7
7.1 The Group’s assets 110
7.2 Environment and sustainable development 111
Property, plant and equipment
Registration document 2013 / LE GROUPE LA POSTE110
Property, plant and equipment The Group’s assets7
7.1 The Group’s assets
The net book value of the Group’s intangible assets
(excluding goodwill) and property, plant and equipment
amounted to €6,758 million as at 31 December 2013,
compared with €6,887 million as at 31 December 2012.
The Group does not calculate the market values of its assets
and liabilities. However, it carries out frequent valuation
tests on samples of assets when researching impairment
indices.
Information on fixed assets broken down by nature
is presented in Note 17 of the consolidated financial
statements and Note 10 of the parent company financial
statements.
The Group’s main assets are made up of fully owned or
rented property assets.
The vast majority of the Group’s property assets are
managed by the real estate operating segment, which
includes Poste Immo (wholly-owned) and the La Poste’s
real estate division.
The Group’s property assets (most of which are in the real
estate operating segment) were broken down as follows as
at 31 December 2013:
GROUP PROPERTY ASSETS BY CATEGORY
(thousands of square metres)Directly-owned
propertiesRented
properties
Mail platforms 1,255 1,366
Parcels-Express platforms 182 917
Financial centres 351 19
Post offices 1,406 1,178
Administrative buildings 566 532
Other sites 641 1,498
Total 4,402 5,510
The assets managed by the real estate segment represented 3,974 million m² of floor space in wholly-owned properties and
2,726 m2 of floor space in rented properties at the end of December 2013.
GROUP PROPERTY ASSETS BY GEOGRAPHIC AREA
(thousands of square metres)Directly-owned
propertiesRented
properties
France 4,169 3,852
Europe 233 1,218
Other continents 0 440
Total 4,402 5,510
Other property, plant and equipment include vehicles, machinery and office fittings.
111Registration document 2013 / LE GROUPE LA POSTE
Property, plant and equipment Environment and sustainable development 7
The net book value of capital assets by type and sector as at of 31 December 2013 is presented as follows:
Net book value(€ million) Mail
Parcels-Express
Banking activities
Retail Brand Real estate
Shared Services Total
Intangible assets 251 143 327 44 41 10 816
Land and buildings 22 354 358 0 2,880 0 3,614
Machinery and equipment 332 245 158 7 0 40 782
Vehicles 26 32 0 0 0 432 491
Other tangible assets 185 72 121 87 352 55 872
Assets under construction 15 85 5 0 77 1 182
Total 833 930 969 138 3,350 538 6,758
7.2 Environment and sustainable development
This section is covered in Chapter 5, Section 5.4 “Corporate Social and Environmental Responsibility”.
Registration document 2013 / LE GROUPE LA POSTE112
113Registration document 2013 / LE GROUPE LA POSTE
8
8.1 Innovation in action 114
8.2 Intellectual property policy 116
Innovation and intellectual property
Registration document 2013 / LE GROUPE LA POSTE114
Innovation and intellectual property Innovation in action8
As a multi-business service provider, innovation is a critical
component of Le Groupe La Poste’s strategy for anticipating
and adapting to profound global transformations in its areas
of development.
To that purpose, its innovation strategy takes into account
such major developments as:
population ageing in France and Europe;
transformations in consumer practices and retail trends;
the advent of a digital society whose repercussions go
well beyond the simple digitisation of exchanges.
These changes entail both risks and also challenges for the
Group’s development. For that reason, the innovation policy
has focused on three priorities:
opening to external innovations;
paying careful attention to those technologies that are
revolutionising practices and uses by different customers
to test service innovations (1);
promoting an internal culture conducive to innovation.
8.1 Innovation in action
Innovation efforts are deployed at all Group levels, with cross-entity initiatives on the one hand and actions in each of the
Business Lines on the other hand.
8.1.1 Developing an open innovation approach
The Group engages with a number of parties that contribute
to its innovation profile: customers, shareholders, suppliers,
the world of academics and research, start-ups and SME,
shareholders. This environment, also populated by its
competitors, is viewed as an open innovation ecosystem
that it must integrate.
Innovation requires an ability to identify underlying socio-
technological trends, sourcing or acquiring the best
solutions to be integrated in its processes and offerings,
through four steps that are related to the components of
this ecosystem:
The appropriation of the issues relating to future challenges calls for collaborative relations with
academia. It requires taking into account changes in
the environment, with the broadest possible approach
that is at the same time societal, technological and
international in nature. The resulting analysis is then
shared with Business Lines in order to raise awareness.
In 2013, issues relating to population ageing, the
transformation of the urban landscape and European
integration were addressed.
identifying trends and sharing experience is concretely
achieved through playing an active role in managing this
innovation ecosystem (2):
- intercompany clubs, forums for exchange and sharing
best practices (Club des Directeurs de l’Innovation, Club
Open Innovation);
- associations and think tanks where transformational
ideas of contributors to innovation meet and exchange
ideas: Fing, IE Club, Competitive Clusters (Cap
Digital);
- customers: to jointly build and test new offerings
before being released on the market (for example,
the Banking Lab);
- partnerships with events seeking to support
innovation:
- in 2013, the Group supported the Paris "Innovation
Grands Prix" for the third year in the "Services to
Companies" category,
- the Group is a partner of the fourth edition of the
Dataconnexions contest devoted to the theme of
"local services", promoting projects using one
or more public data sets acquired within the
framework of a public service mission.
(1) The goal of innovating services, while drawing frequently on disruptive technological solutions, is to above all enhance and/or facilitate the customer
experience during interactions with its supplier.
(2) The open innovation ecosystem defines relations between a company and all of its innovation partners.
115Registration document 2013 / LE GROUPE LA POSTE
Innovation and intellectual property Innovation in action 8
Qualification and execution of innovative projects, with
SMEs and start-ups:
- Lab Postal, created in 2009 has contributed to the
Group’s open innovation momentum. Through this
vehicle, the goal is to promote an understanding of the
stakes and opportunities of the digital transformation
by means of: exchanges with external and internal
contributors, experiments with service prototypes
developed with innovative companies, tests of tools
and methods fostering innovation (digital tools,
design, creativity, etc.).
Since its creation in 2009, 80 prototypes have been
produced on this basis with the Business Lines and at
subsidiaries, with 20% reaching concrete development
phases (intelligent street letterboxes, innovative urban
delivery vehicles, citizenship relations management,
etc.);
- the FTSIO open innovation fund (Le Fonds Transverse
pour l’Innovation Ouverte) created at the end of 2011,
is a corporate entrepreneurship vehicle contributing
to the development of partnership projects by Group
subsidiaries through an open innovation approach
(formation of business partnerships, experimentation
or research agreements). Since its creation, the FTSIO
fund has contributed to the emergence of 33 projects
originating from all Business Lines and has financed
19 projects with 20 different partners (for example:
Mooville-Muses with Chronopost, winner of the IE
Club responsible development prize for relations
between major groups and innovative SMEs; Talk to
Pay with La Banque Postale for payment transaction
voice biometrics authentication of payment).
Contributing equity capital through XAnge: the private
equity and venture capital company of which Le Groupe
La Poste is one of the founding members, is a financing
vehicle for innovative young companies. Every year, XAnge
has referred 60 to 100 projects to the Group’s different
Business Lines with a development objective. Over the
last 10 years, €120 million in venture capital have been
raised by La Poste and La Banque Postale, which also
provide their business expertise and contributes to
generation of the deal flow.
This open innovation strategy has resulted in concrete
commitments on the part of La Poste at the end of 2012
with the "Charter for public corporations in favour of
the emergence and development of innovative SMEs",
supplemented by a Group purchasing strategy in favour of
the development of innovative SMEs (optimising SME access
to purchasing opportunities, improving contractual relations
with SMEs and their cash flows).
8.1.2 Proposing ongoing service innovations
The Group is constantly seeking to demonstrate its ability
to propose innovative service solutions to retail customers
and companies. This priority is exemplified by:
joint development through partnerships: for example,
the creation in March 2013 of Idenum, a joint undertaking
held by Le Groupe La Poste, Euro-Information (Crédit
Mutuel-CIC), SFR, Solocal Group and the Caisse des
Dépôts (through the French national Fund for a Digital
Society—Fonds national pour la société numérique), to
promote digital identity services; market roll-out in
September 2013 of Paylib, an electronic wallet jointly
developed by La Banque Postale, BNP Paribas and
Société Générale;
the launch of innovative offerings, in line with
the strategic positioning of each Business Line
(development, for example, of the "Predict" offering by
DPD guaranteeing the delivery during a specific time
window for corporate customers in the United Kingdom,
the launch by EasyBourse of a mobile application for
placing stock market orders, etc.).
8.1.3 Promoting the internal culture of innovation
Changing culture and tools is an important driver of Group
transformation and depends on participatory innovation, a
structured management approach seeking to foster and
promote the development, the implementation and the
dissemination of ideas by all personnel to create added
value and improve organizational performances.
Registration document 2013 / LE GROUPE LA POSTE116
Innovation and intellectual property Intellectual property policy8
8.2 Intellectual property policy
8.2.1 Patents
As service operators, the Group’s Business Lines mainly
use patents and licenses developed by partners and
suppliers. The amount invested for research tax credits is
not significant.
Le Groupe La Poste has filed more than 40 patent
applications to which it has full title with INPI over the last
decade, mainly for industrial mail facilities (i.e. processing
and sorting, transport and storage, distribution and
collection).
8.2.2 Trademarks
The Group’s main brand is “Le Groupe La Poste”, which
has been registered in France and the European Union and
is endorsed by all subsidiaries in their institutional and
business communications. The Group has a portfolio of
approximately 1,700 brands registered in France and around
the world.
The Group has registered many other brands corresponding
to the names of subsidiaries, products and services.
Lastly, constant care is taken to protect, defend and monitor
the portfolio of brands and domain names to prevent any
fraudulent or unauthorised use that could harm the Group’s
intangible assets and brand image.
117Registration document 2013 / LE GROUPE LA POSTE
9
9.1 Risk management system and methods for identifying and handling risks 118
9.2 Strategic risks 119
9.3 Operational risks 122
9.4 Financial risks 124
9.5 Legal and regulatory risks 129
9.6 Policy of covering certain risks with insurance 131
Risk factors
Registration document 2013 / LE GROUPE LA POSTE118
9Risk factors Risk management system and methods for identifying and handling risks
The Company performs its business activities in an environment that carries certain risks. Readers should pay careful
attention to the risks described below. One or more of these risks may have a negative effect on the Group’s business
activities, financial position or results. Other risks that have not yet been identified, or that Le Groupe La Poste currently
deems non-material, could also have a negative impact.
9.1 Risk management system and methods for identifying
and handling risks
The risk management system (1) is set out in the Group’s
Risk Management Charter. The Charter, which was signed
by the Chairman of Le Groupe La Poste, entered into effect
on 1 January 2010, and applies to the whole Group.
The risk management system is in compliance with the
professional standards recommended under international
COSO 2 guidance and the Autorité des marchés financiers
(French Financial Markets Authority)'s reference
framework. It is also based on the standards contained
in CRBF Regulation 97/02 as amended, which applies to
La Banque Postale.
The Executive Committee relies on the Group Risk
Committee, a body combining representatives from the
Business Lines, the main subsidiaries and the cross-
divisional support functions, which coordinate the risk
management approach.
The Group Risk Department, which works under the
director of audit and risks who himself reports to the
Chairman and Chief Executive Officer, draws up the major
risk cartography project in collaboration with the concerned
parties, prepares the work of the Risk Committee and the
Executive Committee regarding risk management and
organizes the "risk—internal control—insurance" sector.
This sector supports the managerial line up to the
operational premises in order to help control its business
activities and risks.
The identification and assessment of major risks and the
preparation of plans to control these risks, are based on
work carried out in each Business Line, subsidiary and
government domain, on interviews with the Group’s senior
executives and on permanent oversight of risks at each
specialist unit and body (e.g. HR, security, legal, information
systems, etc.). Audit plans are drawn up based on the
Group's major risk mapping as well as sector mapping.
The results of this work are presented each year to the
Board of Directors' Audit Committee, after it is presented
to the Executive Committee who approves it.
Another meeting, at mid-year, allows the Executive
Committee to ensure that the implementation of risk
control plans is monitored. An overview of this monitoring
is also presented to the Audit Committee.
There are three types of risk facing Le Groupe La Poste:
business activities-related strategic and operating risks;
risks inherent to financial management activities,
especially for La Banque Postale;
risks pertaining to the legal, regulatory and market
environments in which business activities and missions
are carried out.
La Banque Postale, GeoPost, Sofipost and Poste Immo
also have Audit Committees, to which the main risk factors
relating to these entities’ business areas entities are
presented.
(1) See Chairman’s report on corporate governance and internal control and risk management procedures (appendix 1).
119Registration document 2013 / LE GROUPE LA POSTE
Risk factors Strategic risks 9
9.2 Strategic risks
Risks from environmental strategy or the implementation of the strategy pertaining to market developments for each
Business Line and to the management of external growth transactions and partnerships.
Risks related to the different Business Lines' markets
Risks relating to declining Mail volume
The Mail service must adapt to customers’ expectations in
an environment with the following key features:
spread of the Internet, which has led to changes in
the way private individuals and businesses operate, to
a digitization of part of the mail and to the emergence
of alternative competitive solutions (the Mail Business
Line still needs to strengthen its presence in this rapidly
growing niche market);
higher standards of service activities;
society ’s env ironmental awareness, which is
transforming the Mail business environment—directly
affected by the Grenelle 1 and 2 Acts (e.g. reduced energy
consumption and eco-design of direct marketing);
an economic environment that remains difficult.
Pressure on business customers’ overheads and the
growing importance of environmental issues have
acquired strategic importance for the Mail business, with
sustainable development constituting a powerful driver for
the rationalization of flows.
All of these undercurrents are combining to cut mail
volumes by an estimated 50% over the 2008-2020 period,
thereby reinforcing the need to renew the Mail offering in
order to seize the opportunities these trends are generating
and to reduce costs. Le Groupe La Poste and its relevant
subsidiaries have defined a strategy seeking to address this
risk focusing on four main areas:
Mail, the major media of the customer relationship;
Mail, the high-value local logistics network;
Mail, partner of choice for e-retailers;
Mail, a major provider of home-based services through
its network of postmen.
Risks related to economic conditions and
competitive pressures in Europe in the parcel
and express segments
Express (GeoPost) and rapid (ColiPoste) parcel delivery
is subject to considerable pricing pressure in both the
B-to-B and B-to-C segments that are undergoing rapid
development. This pressure on prices is not always passed
on to suppliers. On to the contrary, in certain markets
production costs of GeoPost Group companies are also
subject to an associated increase in certain production
costs (labour, fuel, etc.). This in turn is putting increasing
pressure on margins.
The measures taken by GeoPost’s management at local
and Group level have enabled it to continue expanding its
business activities and net income.
On the more specific market of B-to-C express parcels
in France, ColiPoste is faced with the ongoing ramp-up
of logistics and business models that offer an alternative
to postal distribution. Once again, this trend has led
to significant pressure on prices, and has affected the
level of service accordingly. The continued deployment
and enhancement of the So Colissimo offering (see
Chapter 5, Section 5.1.2.3.2) and the optimization of capital
expenditures and production resources constitutes a
commercial and industrial response to this challenge.
Risks relating to the pace of La Banque
Postale’s commercial development
Operating in the retail banking market, La Banque Postale
has managed to maintain a strong position in the sight
deposits and savings market for private individuals.
Its continued development depends on its ability to maintain
its share of the savings products and current accounts
market and grow its market share in property lending,
consumer credit, property and casualty insurance and, since
2012, credit lending for legal entities and local authorities,
Registration document 2013 / LE GROUPE LA POSTE120
Risk factors Strategic risks9
as well as for social home ownership programs for low
income families. However, when there is tension in liquidity
and capital requirements are being tightened, rival banking
networks are all looking for safe, inexpensive resources
(deposits/savings). Increasingly heavy competition and
persistently low interest rates are a source of uncertainty
where La Banque Postale’s development plan is concerned.
This risk is reduced by the comprehensive scope of the
range, which is now complete, and the implementation
of structured sales methods in which the sales force and
Advisers are trained. La Banque Postale applies the due
diligence required when implementing new offerings by
supplementing its control procedures accordingly, and
remaining true to its positioning as a “bank and a corporate
citizen”.
Risks associated with the rise of a new mobile
phone service
Already active in the sale of prepaid telephone cards,
La Poste has decided to take the next step by creating
La Poste Telecom, together with a partner telephone
operator. This company has developed a business as
a mobile virtual network operator and its products are
marketed by the network of post offices under the La Poste
Mobile brand.
This activity is no longer in the start-up phase and today is
very close to meeting its first strategic target of one million
customers. However, the sector is undergoing rapid change.
The ability to anticipate is a key factor in an environment
where competition is intense, and very low prices are
putting pressure on margins.
Risks from mergers, external growth transactions and partnerships
Acquisitions entail specific risks that could potentially
call into question their business plans. economic risks
(economic deterioration of the business activity or the
country, adverse changes in rates, etc.), business risks
(loss of major customers, new competitors, substitution
products, etc.), management, social, legal risks, etc. When
such risks materialize, the profitability or even the viability
of the acquired entity may be called into question.
Within Le Groupe La Poste, external growth transactions
up to now have essentially taken place in GeoPost and
Sofipost, part of their development being based on
external growth transactions. These entities have made
acquisitions of various sizes that might entail risks, and
notably difficulties related to implementing the integration
of the acquired companies. With respect to the Banking
activities of the Group, in addition to selected acquisitions
(notably, Tocqueville and BPE), La Banque Postale has
also forged partnerships with specialized companies to
develop its new banking and insurance activities as part
of joint ventures (property and casualty insurance, health
insurance, consumer credit, lending to legal entities, wealth
management, electronic banking).
To be able to control the risks related to its acquisitions,
Le Groupe La Poste bases its decisions on an in-depth
evaluation of the transactions and their validation at each
level of its governance:
At the operational level, each acquisition is evaluated on
the basis of an assessment carried out by specialists or
external consultants on the reliability of the accounts,
the business plan, and the legal risks. Local expertise
is sought when the markets are outside Europe, given
the specific features of regulations and cultures.
Moreover, more attention is paid to identifying suitable
management that is familiar with the local market and
available as soon as the deal is completed.
In the banking area, partner companies for La Banque
Postale’s new business activities were selected through
calls for tenders and the partnership arrangements were
carefully studied and negotiated.
At the industrial subsidiary level, approval by Board of
Directors of the subsidiary in question is required for
any transaction exceeding €10 million (1). The decision-
making process is supported by the review of a file
focusing on four areas: strategic analysis; an assessment
of the business plan, its assumptions, the price structure
and price sensitivity; an accounting impact analysis; and
an assessment of the Company’s societal responsibility.
Regarding Sofipost, the target selection and integration
process was reinforced and formalized in 2012,
consistent with that of the Group.
(1) €15 million for La Banque Postale.
121Registration document 2013 / LE GROUPE LA POSTE
Risk factors Strategic risks 9
At the Group level, the Board of Directors must examine
and approve all acquisitions of more than €30 million.
The same applies to external growth transactions
executed as part of a new strategic orientation regardless
of their amount.
Additionally, in the first half of 2012, the Group
strengthened its process for choosing capital expenditure
and external growth prior to these instances:
- external growth transaction projects exceeding
€10 million, for the industrial and commercial
subsidiaries, and €12 million for La Banque Postale,
are now submitted for approval to an Investment
Committee composed of Senior Vice Presidents in
charge of Financing and Strategy;
- additionally, external growth projects for amounts
exceeding €30 million, or resulting in an installation in
a new country, or the development of a new business
activity are reviewed by an Investment Committee
composed of Senior Vice Presidents in charge of
Financing and Strategy and chaired by the Group
Chairman and Chief Executive Officer prior to being
submitted to the Board of Directors of Le Groupe
La Poste.
These procedures for securing external growth transactions
aim to help control the risks relating to these acquisitions
in various areas, which form an integral part of the Group’s
development strategy.
Le Groupe La Poste recorded goodwill following
transactions completed by its subsidiaries. No impairment
on this goodwill was recorded with regard to 2013.
Risk relating to the inability to generate the cash required for the Group's development, which may have a detrimental effect on the Group's sound economic health
Major strategic objectives for the Group include self-
financing its operations and current organic growth, thanks
to the generation of positive cash flows after the payment of
dividends to shareholders, and access to external sources
of financing (debt and equity capital). These objectives are
essential for meeting the Group's goal of obtaining "good
economic health". This good economic health can be
weakened by taking into account the following factors:
an acceleration in the contraction of Mail volumes and of
the Retail Brand’s business activities. In fact, in this case,
Mail and the Retail Brand's ability (which is also affected
by the switch to paperless channels and by a decrease in
transactions performed at post office counters) to adjust
their organizational structures and resources to changes
in their respective business volumes would become
inadequate, and would be hard to offset via additional
productivity gains. These Business Lines have operating
structures relying mainly on fixed costs;
La Banque Postale's results, and thus the dividends that
it pays out and which represent a significant contribution
to the Group's consolidated cash flow, are sensitive to
certain volatility factors (markets, rate levels, the debt
of governments). Furthermore, La Banque Postale's
contribution (34.5% at 31 December 2013 compared
with 30.7% in 2012) is significantly dependent on CNP
Assurances’ contribution, which is also sensitive to
economic and regulatory changes in the markets;
an increase in bearish tensions on prices in the Parcels
and Express markets for which dynamic growth in
volumes would not be able to compensate.
Registration document 2013 / LE GROUPE LA POSTE122
Risk factors Operational risks9
9.3 Operational risks
Changes in employees and skills
Le Groupe La Poste's staff is comprised of both state and
private employees, and is spread over a large number of
facilities throughout the country. These features make it
complex for organizations to adapt, all the more so since
Le Groupe La Poste’s respective Business Lines are facing
rapid, fundamental changes in their strategic environment
and markets. This has led them to overhaul the organization
of their workforce, which has both quantitative and
qualitative repercussions on the Group’s human resources
policy.
The risks from these developments are as follows:
Risk of developing insufficient skills
The qualitative and quantitative changes of Le Groupe
La Poste's Business Lines involve a necessary adjustment
of postal workers' skills. This necessity is not new, and it
has always been taken into consideration. Nevertheless, the
current rhythm of changes (digitization of mail, growth of
e-commerce, increase in new banking offers, omnipresence
of new IT and communication techniques in the professional
environment), is such that the subject of continued skills
development is on the agenda. As such, Le Groupe La Poste
is strengthening its actions in the areas of workforce and
skills management planning and training.
Risks related to the health of the postal
workers
As with all labour-intensive companies, La Poste may
generate:
professional risks related to the very nature of its
business activities, whether it involves physical activities
(handling and carrying loads) or customer relations
(insults, stress, assaults);
risks linked to changes in organizational structures
and Business Line content (skills management and
psychosocial risk);
compliance risks with regulations on health and safety
and duration of working hours;
image risks in postal worker/customer relations.
To deal with these risks, the company strives to ensure
responsible development, prevention, mentoring and
training. In particular, a global action plan drawn up at
the highest level of the Company has been implemented
to prevent psychosocial risks and improve the well-being
of Group employees, especially within each Business Line.
The new health, safety and working conditions Committees,
implemented in the autumn of 2011 and endowed with
competencies under the normal legal regime, the roll-out
of “work life” plans in all services, and the mobilization of
players contributing to prevention are taken into account in
the workplace health and safety risk control system.
Furthermore, in March 2012, Le Groupe La Poste launched
a program aimed at listening to health at work issues,
which primarily resulted in the report of the La Poste's
Major Dialogue Commission, chaired by Jean Kaspar,
the conclusions of which were submitted in September
2012. The priority measures determined by Executive
Management following the submission of the report
involved support for management, the organization of
work and change management, health and safety at work,
and strengthening local HR functions, as well as forward
management of headcount and skills. They have been rolled
out since the last quarter of 2012.
The framework agreement of 22 January 2013, signed with
the majority of trade union organizations, supplements
and reinforces the whole plan, and opens the way to other
agreements in various areas like teleworking.
123Registration document 2013 / LE GROUPE LA POSTE
Risk factors Operational risks 9
Business continuity, safety and security
Risk of loss of sales and disruption of public
service missions in the event of a major crisis
Every day, 250,000 individuals serve 65 million people in
France, delivering tens of millions of items, carrying out
millions of bank transactions and dealing with 1.7 million
people in post offices.
These figures show the economic importance of the
services Le Groupe La Poste provides to the public and
businesses, the degree of contact between postal workers
and customers and between postal workers themselves,
and also the importance of the human factor in postal
business.
Moreover, in accordance with current regulations on civil
protection and defense, the Group is required to fulfil
certain roles necessary for the nation’s economic activity
and for the continuity of government operations.
A pandemic or any other major crisis preventing a large
number of postal workers from performing their duties
would greatly disrupt Le Groupe La Poste's work and would
lower its revenue.
Therefore, this challenge concerns both the Company’s
social and economic role and its financial health.
Crisis management procedures and business continuity
plans introduced as part of wider government response
measures (to pandemic, fuel shortage, terrorism, etc.) must
be adapted to the various possible forms of crisis.
Crash or downgrading of the computer or
telecommunications systems, undermining
the Group’s ability to support its operating
activities
This global risk factor, relating to the direct dependence
of various Group business activities on its information
systems, covers two main areas of risk:
Risk of malicious attacks on the Group’s network, mail servers or websites
Firstly, an uncontrolled virus can alter, destroy, disclose or
make unavailable the Group’s information systems following
a partial update of the anti-virus protection or the failure
to update it, an insufficiently detected virus spread, an
insufficient response or unsuitable user behaviour.
Such virus pollution could result in the network being
blocked, which would prevent transactions from being
carried out with customers (at the post office counters or in
the banking back office), or the performance of production
processes (for mail or parcels).
Secondly, malicious software intrusions (the use of
malicious software to wilfully intrude into information
systems without authorization) may be facilitated by
weaknesses in the information system’s different security
and surveillance mechanisms and components or by
careless user behaviour.
Lastly, the disclosure of personal or strategic data may hit
revenue directly or indirectly.
This is why the Group's telecommunications and data
exchange network is subject to constant monitoring (an
observatory operates 24/7), and is the subject of state-of-
the-art prevention measures. Following the example of
other large companies, Le Groupe La Poste has organized
a CERT (Computer Emergency Response Team) function at
the observatory.
Risk in the event of a major disaster at an IT production site
The Group's IT production centres house components of
the information systems, which support key management
and operational processes: sorting and tracking items,
sales administration for mail and parcels, checking account
and means of payment management, savings account and
investment account management and loan management
for the banking activity.
To reduce the risk of one of these components being
unavailable after a major disaster, whether to hardware
or software, La Poste and its subsidiaries are introducing
business continuity and business recovery plans in
applications deemed critical.
Registration document 2013 / LE GROUPE LA POSTE124
Risk factors Financial risks9
Risk of armed robbery in post offices
The risk of armed robbery remains significant given the
number of post offices, the role of La Banque Postale and
the type of services it provides to the French population.
The risk lies more on the intensity of these attacks than on
the number of them, which has sharply decreased over the
last ten years as a result of the actions taken by Le Groupe
La Poste.
Vigilance and security programs remain on the agenda.
Bank fraud
Like all banks, La Banque Postale has seen an upsurge of
external fraud.
Fraud is an operational cost that La Banque Postale
closely monitors. It consists mainly of electronic banking
fraud, and also includes “identity theft”. La Banque Postale
significantly reinforced its action plan in 2013, working
together with the operators concerned at La Poste, in
order to reduce this cost via measures that address both
the management and strengthening of tools and controls
(including the identification of fraudulent documents),
and training on fraud prevention and identification for
employees, as well as changes to procedures (security of
transactions).
Furthermore, La Banque Postale benefits from an insurance
program from Le Groupe La Poste for internal and external
fraud, and in particular bank fraud.
9.4 Financial risks
Apart from Banking activities liabilities, which La Banque
Postale distinctly manages in collaboration with the Group,
the Group’s other financial liabilities mostly comprise bank
borrowings and overdrafts, as well as accounts payable.
The main purpose of these financial liabilities is to finance
the Group’s operating activities. The Group holds financial
assets such as trade receivables, cash and cash equivalents
and short-term investments directly generated by its
business activities. The Group also invests in derivative
instruments—mostly interest-rate swaps. The aim of these
instruments is to manage interest rate risks linked to Group
financing.
Le Groupe La Poste takes a cautious approach to risk
management based on a system of notional limits for
each of the financial risks to which it is exposed through
its financial activities. This system of limits is set down
in a “Book of Limits” that is updated regularly, based on
changes in the business activities of the Treasury and
Financing Department.
An execution report on the Book of Limits is also presented
annually to Le Groupe La Poste's Audit Committee. In 2013,
it contained no particular observations.
9.4.1 Non-banking financial risks
Liquidity risk
The Group strives to have sufficient financial resources
to finance current business activities and the capital
expenditure needed for future growth at all times. The aim
of cash management is to find resources at the lowest cost
and ensure they can be obtained at any given moment.
Liquidity risk is measured using cash and cash equivalent
forecasts drawn up each month. Any potential liquidity
gaps are covered by issuing short-term negotiable debt
securities (Treasury bills and Euro Commercial Paper) and
through confirmed credit facilities provided by financial
institutions. The Group also has a syndicated loan facility
of €650 million. The loan agreement, which was signed
on 20 October 2011 for an initial term of five years, was
extended for an additional year in October 2012 under the
same conditions, and for a further year in October 2013,
under the same conditions. In addition to the €650 million
syndicated loan, the Group arranged a confirmed credit
facility of €75 million in October 2013, under the same
conditions. Chapter 20—Note 28.2 to the consolidated
financial statements details all cash flows.
125Registration document 2013 / LE GROUPE LA POSTE
Risk factors Financial risks 9
A liquidity alert is sounded when the one-month provisional
cash flow statement reveals that total short-term financial
resources that have been used exceed 50% of all available
financial resources (approved credit facilities).
Risk of inadequate long-term capital for the
Group's new needs
The €2.7 billion share capital increase proposed by La Poste’s
Board of Directors on 10 February 2011, which was approved
by the General Meeting on 6 April 2011, and from which the
Group benefited between 2011 and 2013, reduced this risk
factor, which was linked to an excessively high level of debt
in view of the amount of equity capital, and restricted the
Group's ability to seize future development opportunities.
Nevertheless, vigilance will be maintained with regard to
the potential funding needs of the Group’s Business Lines,
especially those of La Banque Postale, in times of tighter
prudential rules and deteriorated economic conditions.
Similarly, the need to find and finance sources of growth to
offset the decrease in certain traditional business activities
will require adequate equity capital.
Currency risk
The Mail and Parcels-Express businesses operate
internationally, either from France or through foreign
subsidiaries. The bulk of these business activities leads to
income and expenses denominated in a single currency—
primarily the euro.
The residual foreign exchange rate risk on operations
therefore concerns only very modest amounts relative to
the Group’s size.
At 31 December 2013, the currency impact on revenue
amounted to -€49.8 million. This is broken down into -€30
million on the British pound, -€11.1 million on the South
African rand, -€3.3 million on the Russian rouble and
-€1.8 million on the Swiss franc. The impact of currency
fluctuations on operating profit was -€6.4 million in 2013.
Foreign currency-denominated debt issues are
systematically hedged using currency swaps. Therefore,
bonds denominated in pounds sterling and in Swiss
francs are subject to a 100% foreign currency hedge
(see Chapter 20, Note 27.4 to the consolidated financial
statements). An exchange rate hedge was put in place
to eventually cover the acquisition price of the company
DTDC in Indian rupees. This hedge took the form of a Non-
Deliverable Forward (NDF) which secures a consideration
for the acquisition price in euros.
Interest rate risk
La Poste has implemented an active bond debt management
strategy, which is based on using derivatives to reduce the
cost of its borrowings (see Chapter 20, Section 20.1, and
Note 27.3 to the consolidated financial statements).
This dynamic management generates a unidirectional
interest rate risk linked to an unfavourable change in
the yield curve. The interest rate risk is controlled by a
percentage limit representing the maximum cost of the
bonds on a four-year horizon. This limit, which is revised
every year based on the duration of the bonds and the yield
curve, is monitored on a weekly basis.
The forecast debt cost is determined based on projected
cash flows for all instruments used to manage the debt:
borrowings and derivatives. These cash flows are calculated
using a market tool that determines expected future
coupons based on yield curves.
In order to anticipate the impact of a rise in interest rates,
the cost of debt is simulated every week based on a parallel
shift of 50 basis points in the yield curve. If the result of this
test exceeds the authorized interest rate limit, preventive
transactions are carried out to re-price the cost of the debt
(see Chapter 20—Note 27.3 to the consolidated financial
statements). The floating-rate portion amounts to around
7.5% of total debt excluding Asset Backed Investments
(described below). The impacts from a sharp decrease or
increase in rates therefore remain limited on the average
cost of Le Groupe La Poste's debt.
Furthermore, La Poste has decided to invest part of its cash
(€650 million) in products that are fully-backed (by rate and
maturity) by part of its bond debt, so as to provide for the
redemption of that debt while neutralizing interest-rate
risk and benefiting from a more attractive remuneration
on the backed investments. To determine the net exposure
to interest rate risk, Le Groupe La Poste only takes into
account the debt for which no investment income can
perfectly offset changes in interest rates.
Registration document 2013 / LE GROUPE LA POSTE126
Risk factors Financial risks9
Credit risk
Credit risk involves a risk of the Group suffering a financial
loss if a customer or counterparty to a financial instrument
fails to meet its contractual obligations. The risk mainly
arises from trade receivables and investment securities.
Investment securities
In the course of its financial activities, La Poste is primarily
exposed to two types of credit risk (see Note 32.1 to the
consolidated financial statements—Chapter 20):
risk of issuers defaulting on their investment securities;
risk of its market counterparties defaulting.
Le Groupe La Poste's cash and cash equivalents are
placed under cash UCITS, term deposits and negotiable
debt securities (NDS) benefiting from the purchase of a
minimal short term rating of A2/P2 as well as cash-backed
investment securities. The credit risks are controlled by
a system of limits representing the maximum nominal
amount not to be exceeded per UCITS or issuer. In the
event where a portfolio investment sees one of its short
term ratings fall below A2/P2, this security must be sold "at
best" unless the Chief Financial Officer makes an overriding
decision.
In addition, to limit the risk of loss on the asset investment
portfolio (excluding cash UCITS), a maximum loss limit has
been introduced. This limit represents the statistical loss
on the asset investment portfolio within a 97.5% interval. Its
calculation is based on including the CDS for each security
in the portfolio, weighted by its residual maturity. In the case
of investments backed by a portion of the bond debt (see
“Interest-rate risk”), bonds with a maturity greater than
one year have been purchased, primarily through setting
up three dedicated funds amounting to €150 million each.
Specific limits were developed for these cash-backed
investments, including those limiting the share of banking
securities to 50% and those intended for investment in
securities with an A rating or above for banking sector
bonds, and BBB+ or above for other securities when
these bonds are acquired. If these securities (banking and
non-banking) are downgraded by one of the credit ranking
agencies to under the levels BBB-/Baa3, they will be sold
with no override possible.
Moreover, in view of its activity in derivative markets,
Le Groupe La Poste is exposed to a risk of its market
counterparties defaulting. This risk is also controlled by a
system of limits, which constitute absolute upper limits for
risks from derivative portfolios.
The exposure arising from these instruments is identified
via a valuation system based on the net market value of the
derivatives, less any potential guarantees received.
Finally, the commitments vis-à-vis Le Groupe La Poste’s
counterparties are subject to systematic collateralization
agreements that reduce the risk of default at the franchise
level.
Trade and other accounts receivable
Provisions are calculated individually, based on an
assessment of the risk of default. The weight of the top
Parcels-Express customers does not present a significant
risk to the Group.
No Group customer accounts for more than 10% of
consolidated revenue.
9.4.2 Financial risks related to Banking activities
The financial risks to the Banking activities are as follows:
credit risk;
counterparty risk;
liquidity risk;
market risk;
interest rate risk;
operational risks.
Note 33.4 to the consolidated financial statements
(Chapter 20) quantifies risks of the Banking activities.
Credit risk
Credit risk represents risk of loss resulting from the
inability of bank customers, sovereign issuers or other
counterparties to confront their financial commitments.
La Banque Postale implements risk-taking rules relating to
commitments and loan issuance in particular, and applies
procedures involving scoring and expert systems for the
issue or management of loans and overdrafts.
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Risk factors Financial risks 9
La Banque Postale’s Risk Management Department defines
and applies credit risk measurement indicators, as well as
action plans to be implemented in the event of adverse
changes to these indicators.
In retail banking business activities, credit risk primarily
comes from property lending.
Furthermore, La Banque Postale Financement, La Banque
Postale’s specialist consumer loan subsidiary, has been
marketing these loans since April 2010. The same rules
that are used for property lending are applied.
Likewise, strict rules are put in place regarding loans to
legal entities and local authorities since these operations
began in 2012. Dedicated teams within these Business
Lines handle the corresponding risks in close cooperation
with La Banque Postale's Risk Department.
As regards trading, credit risk stems from interbank cash
transactions on deposits, loans and repurchase agreements
as well as from corporate, banking or sovereign issuer
risk on negotiable debt securities bought and sold by the
trading room. Before any capital expenditure, third parties
are systematically rated and assigned an individual limit
designed to cap the total amount of the commitment. If
necessary, these individual levels may be supplemented
by so-called Group limits, covering exposures to a group
of third parties considered to be the same beneficiary for
the purposes of Article 3 of CRBF Regulation No.93-05.
The individual limits are supplemented by a set of limits
designed to reduce the risks of concentration on groups of
counterparties classified according to their country of origin,
their Business Line or their internal rating. La Banque
Postale’s Risk Committee may revise these diversification
limits monthly (see Chapter 20—Note 33 to the consolidated
financial statements).
La Banque Postale's current holdings of sovereign debt
result from the obligation previously made to Le Groupe
La Poste's Financial Services to invest in sovereign debt
of OECD countries as specified in the French decree dated
28 February 2000.
2010 saw the emergence of risk on certain euro zone
member states (Portugal, Ireland, Italy, Greece, Spain).
La Banque Postale's Risk Committee has adjusted the limits
on the most sensitive countries several times, some in fact,
all the way down to zero. In the case of the Greek debt,
the remaining securities were sold during the last quarter
of 2012. In the case of Portuguese and Spanish securities,
La Banque Postale reclassified a total outstanding of €1.8
billion of held-to-maturity securities under "financial assets
available for sale", in accordance with IFRS standards
on the exceptional change in management intent. Part
of these reclassified securities were sold for a nominal
amount of €1.1 billion. At 31 December 2013, La Banque
Postale's direct and indirect exposure to PIIGS amounted
to €2.79 billion, including €2.46 billion as a result of
direct exposure. This last amount should be compared
with €4.15 billion at 31 December 2012. The change is
primarily explained by the redemption of certain facilities
that had reached maturity. Exposure to this risk is detailed
in Note 33.7 to the consolidated financial statements
(Chapter 20).
Today, it is markedly less than it was at the beginning of the
crisis, thanks to:
run-off management from that date: the portfolio has
been significantly reduced, and actually reached zero in
the case of Portugal in late 2013;
measures taken at the EU level and by the European
Central Bank;
increase of La Banque Postale's capital base during this
period.
Exposure to counterparty risk
Counterparty risk is credit risk that occurs in market
transactions, investments or regulations where the bank is
potentially exposed to default from its counterparty.
In the terminology used by La Banque Postale, counterparty
risk stems primarily from transactions using futures. These
transactions, which are only carried out with banking
counterparties, are regularly performed within the context
of agreements that provide for netting the exposure and
arranging a collateral amount with regular margin calls.
Liquidity risk
Liquidity risk is defined as the risk for an establishment
to not be able to meet its commitments or not be able to
resolve or offset a position due to the market situation. It
can occur during times of regular market functioning due to
an imbalance on the balance sheet or in a stress scenario.
Due to La Banque Postale’s recent activity as a credit
institution, its balance sheet structure is characterized
by a persistent concentration of assets represented by
investment portfolios and, to a lesser extent, loans to
customers.
In principle, La Banque Postale is not dependent on the
market to meet its commitments. Nevertheless, it is
exposed to a liquidity risk arising from the transition of
its inflows, primarily sight deposits, into outflows with
scheduled due dates, either in the form of debt securities
or loans.
The amounts allocated to the held-to-maturity investment
portfolio are determined by applying a standard test,
modelling the liabilities run-off under different stress
tests and, in particular, incorporating major sight deposit
withdrawal scenarios.
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Risk factors Financial risks9
The portion of resources not used for held-to-maturity
investments or property lending can be used to build the
available-for-sale investment portfolio. These securities
are in effect marketable and can be sold quickly if needed.
The risk control policy of La Banque Postale defines
two types of liquidity risk with two different monitoring
approaches: tactical liquidity risk, associated with the
facility's treasury management, and structural liquidity risk,
related to a change in the Bank's balance sheet structure
(see Chapter 20, Note 33.5 to the consolidated financial
statements).
These two risks are controlled by two limits that are
periodically reviewed by the ALM (Asset and Liability
Management) Committee (1).
Market risks
Market risk involves the possibility of changes in the market,
such as exchange rates, interest rates and the price of
equity instruments, affecting the Group’s earnings directly
or through its equity investments in CNP Assurances, which
has a significant influence on the consolidated financial
statements.
La Banque Postale is exposed to market risks from its cash
management activities and balance sheet management.
The market portfolio, which groups together all transactions
subject to market risks, encompasses not only the trading
portfolio but also banking portfolio transactions, including
available-for-sale financial assets and some lending/
borrowing transactions.
The risk of fluctuations in this market portfolio, which are
defined in La Banque Postale’s risk management policy, is
assessed via sensitivity indicators, a Value-at-Risk scenario,
and stress tests.
This market portfolio is primarily exposed to risks of
fluctuations in interest rates and credit spreads and,
to a lesser extent, to stock markets and exchange rates
(see Chapter 20—Note 33.8 to the consolidated financial
statements).
Prudential ratios
La Banque Postale’s capital base is managed with a view
to enabling La Banque to comply with regulatory ratios
and ensure its solvency while providing its shareholder
Le Groupe La Poste with a dividend yield that is in line with
Group policy and expectations.
The quality of the Bank's assets, together with the
€860 million capital increase in September 2011, and the
€1,028 million capital increase in December 2013, enabled
it to report prudential ratios that exceeded regulatory
requirements in 2013: despite a sharp increase in loans to
customers, the risk quality and level of guarantees attached
to the customer loans portfolio allowed the bank to benefit
from low weightings. Other assets are mainly comprised of
an investment portfolio, primarily invested in government
bonds or equivalent in conjunction with the risk control
policy as defined by La Banque Postale’s governing bodies.
The solvency ratio (2) is the measurement that enables
financial institutions’ ability to handle risk to be assessed.
To calculate its capital base requirements, La Banque
Postale uses a consolidated view of the standard approach
to calculate requirements on credit risks, market risks
and operational risks, while working to develop an internal
model.
As a result, according to the Basel 2.5 standards, La Banque
Postale, which applies CRBF Regulation No.2000-03
regarding financial conglomerates, had a solvency ratio of
15.3% and a Core Tier 1 ratio of 11.4% at 31 December 2013.
Nevertheless, it is advisable to remain vigilant in view of
potential additional prudential changes or the uncertainties
weighing on certain counterparties, which could affect
La Banque Postale's equity capital requirements as part of
the specific measures for applying the Basel III regulations
in European law (CRR and CRDIV).
Lastly, La Banque Postale continued to manage its cash
in a cautious manner. This was reflected in surpluses
throughout the year, underpinned by the quality of the
financial assets owned. La Banque Postale’s liquidity ratio
is furthermore well above the regulatory minimum of 100%.
(1) Balance sheet management (assets/liabilities).
(2) Solvency ratio = prudential capital base / Risk Weighted Assets (RWA).
129Registration document 2013 / LE GROUPE LA POSTE
Risk factors Legal and regulatory risks 9
Interest rate risk
Interest rate risk concerns the possibility of La Banque
Postale’s future margins or economic value being affected
by interest rate fluctuations, in particular due to the
structural nature of the bank.
The overall interest rate risk is measured on the total,
comprised of the modelled retail banking balance sheet
(loans and deposits), portfolios of assets available-for-sale
and held-to-maturity investments.
It is controlled by a limit on measuring overall interest rate
risk, in line with Basel Committee recommendations. This
indicator is presented regularly to the Risk Committee
and the ALM Committee and every six months to the Audit
Committee (see Chapter 20, Note 33.6 to the consolidated
financial statements).
Operational risk
Operational risk is the risk of impairment due to an
inadequacy or an error in procedures, staff, internal
systems or external events, excluding strategic risks but
including risks to the Group’s reputation.
9.5 Legal and regulatory risks
Due to its size and the amount of human and material
resources (i.e. real estate, IT, vehicles, etc.) that it uses,
as well as its historical position on the mail market and
its banking activities, Le Groupe La Poste is subject to a
strict, well-developed and constantly changing legal and
regulatory framework (see Chapter 5—Section 5.3).
There is a risk of failing to adapt, or comply within the
allotted deadline, with the commercial, legal, financial,
civil or criminal repercussions that this can have (see
Chapter 20, Section 20.4). This is why managers and their
staff in each of the Group’s Business Lines are made well
aware of compliance issues.
Risk related to compliance with competition rules
Le Groupe La Poste now performs all of its operations in
a completely competitive environment. Within this context,
La Poste and La Banque Postale are both equipped with
a Department responsible for compliance. Close attention
is paid to this subject in the Group's various business
activities.
In accordance with the commitments made to the French
Competition Authority, in 2012, Le Groupe La Poste rolled
out a competition compliance program in the Group based
on the model created by the French Competition Authority.
Within this context, a member of the Executive Committee
was appointed as head of the program and communication
and training events were distributed to Group employees. A
system to signal when competition regulations are breached
was made available to them.
Compliance with regulations regarding individual freedoms
Personal data makes up the primary source of services
for the digital economy. Le Groupe La Poste, a player in
the digital economy, and a long-time trusted third party,
is sensitive to everything that can and must allow for the
sensitive use of data. The vehicle of this protection policy is
the Data Protection officer (CIL). In 2013, in a fast-changing
regulatory environment, the CIL launched a program
to raise awareness among all internal operators, and
provide them with training. The program aims to reinforce
awareness of data protection from the moment services are
designed. Lastly, the program was partnered by the CNIL,
in order to share expertise and experiences.
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Risk factors Legal and regulatory risks9
Regulations applied to the banking sector and risk of non-compliance
La Banque Postale is subject to numerous regulations
governing its banking, asset management and insurance
activities.
Despite all the precautions taken and the controls in place,
a risk of non-compliance cannot be ruled out.
Risks relating to customers, products and
business practices
Numerous savings products and services (means of
payment) distributed by La Banque Postale are regulated,
i.e. regulations govern the amounts, duration, remuneration,
taxation, beneficiaries and distribution method.
The number of accounts and customers concerned, and
the growing complexity of regulations, can automatically
generate an operational risk of non-compliance, with the
financial consequences this may have.
Specific control systems and instructions are designed
to manage this risk. The Bank also has a system for the
operational validation of products and business information
document compliance.
For its part, interbank management of means of payment
can give rise to legal or regulatory changes that could affect
its business model through commissions paid or received.
Regarding actions led during the last few years by the
French Competition Authority in the area of interbank
commissions. The proceedings launched against French
banks by the French Competition Authority in 2010, which
related to a breach of the competition rules at the time of
the switch to the electronic processing of checks, resulted
in a €33 million fine for La Banque Postale. This decision of
the French Competition Authority was overturned by a Paris
Court of Appeal ruling on 23 February 2012, and therefore
granted La Banque Postale the right to recover the full
amount of the fine. The French Competition Authority is
currently appealing said proceedings in the French Court
of Cassation, which results in a risk that has led La Banque
Postale to record a provision of €16.4 million with regard to
this dispute for the 2013 financial year.
Changes to regulations and legal precedence are constantly
reinforcing banks’ obligations with regards to their duty to
advise (MIFID—Markets in Financial Instruments Directive,
DDAC Act and orders of 5 December 2008 and 30 January
2009—concerning insurance products, etc.).
This regulatory environment is constantly making
the marketing of these products more complex and
consequently making sales line skills increasingly
necessary.
The specific nature of La Banque Postale’s customers, who
prefer secure deposits, and the cyclical weakness of the
financial markets, widen exposure to this risk. This is why
training and professional documentation for the banking
customer advice business constantly stress this aspect.
In addition, the duty of counsel is a recurring control theme
for bank controllers.
Applicable environmental and social regulations
Le Groupe La Poste, with its significant real estate assets
(see Section 5.1.5), must comply with the standards set forth
by the Grenelle 2 Act. This involves voluntary changes at
a time when the growing industrialization of operations is
itself very energy-consuming. This means having to do more
than just offset the emissions from buildings themselves,
in particular by reducing the amount of floor space used.
Moreover, the Act of February 2005 on the accessibility
of public access buildings (PAB) to persons with reduced
mobility states that buildings must be brought up to
standard by the end of 2014, or sanctions may be imposed.
This also concerns outside and inside facilities and all types
of disabilities.
In both cases, this assumes a sustained upgrading of real
estate assets, bearing in mind the scale involved. Outdoor
ATMs have to meet accessibility criteria.
Regarding the “accessibility” component, the upgrading
program is well under way and on track. The assessment
phase of the "environmental" component has been led on
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Risk factors Policy of covering certain risks with insurance 9
strategic and significant buildings, and the compliance
upgrades will be carried out consequently. However,
pending the publication of the decree implementing the
law, there remains uncertainty as to the precise standards
to be complied with.
This risk factor is included in this broader component,
bringing weight to bear on the Group's necessity to adapt
to environmental and social challenges, taking into
account the variety of expectations of the company and
the complexity of the regulations affecting the Group’s
different business activities. The Group is strengthening its
management tools to meet its obligations in this area.
9.6 Policy of covering certain risks with insurance
The Group believes it has reasonable and sufficient
insurance coverage.
The Group’s general policy for insurance is based on the
following principles:
risk sharing: wherever possible, a Group policy is taken
out to provide each entity or subsidiary with optimum
coverage commensurate with its own risks, at minimum
cost, regardless of their financial resources;
insurance in priority of the intensity risk: in general,
frequency risk, for which the cost of insurance would be
too high (deductible, holding, etc.), is kept in-house given
La Poste’s financial resources.
The total amount of the premiums pertaining to insurance
policies subscribed by the Group amounted to €23.1 million
for 2013.
Insurance against property damage and operating losses / all security risks
The Group’s casualty insurance program primarily consists
of a “comprehensive damages except” policy, which
covers all movable and immoveable assets (except for any
exclusions specifically mentioned in the agreement), and
concerns all the Group’s entities, with the exception of
certain subsidiaries covered by a policy that is appropriate
for their financial resources.
Under this policy, all claims are totalled and the coverage is
triggered when they exceed €3 million per year. Le Groupe
La Poste therefore insures itself up to this amount. Above
this limit, the risk is transferred to the insurer.
The main limits under this policy are as follows:
fire, explosion, lightning, electric and electronic damage,
land vehicle accident, naturally occurring events and
natural disasters, terrorist attacks, smoke damage:
€150 million in direct damages of which €45 million for
additional costs;
collapse: €30 million in direct damages and additional
costs;
insolvency of suppliers and customers: €20 million.
This contract also covers risks tied to funds and securities
held by the Group, including those in ATMs.
The Mail and Parcels subsidiaries, both in France and
abroad, also benefit from their "All Risks and Operating
Losses" property insurance program for a total amount of
€100 million per claim.
Other property insurance policies mainly involve risk
coverage:
fraud: this compensates financial losses resulting from
fraud, malicious acts committed directly against the
Group or one of its subsidiaries on insured items (i.e.
all documents, archives, furniture, equipment, goods,
programs and data, and securities held in any way);
IT: these compensate for damages (including operating
losses) the Group may suffer in the event of damage to
its software and data, resulting from one of the trigger
events listed in the contract;
pertaining to banking activity: this compensates
financial losses suffered by La Banque Postale and its
subsidiaries, triggered by one of the events listed in the
policy.
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Risk factors Policy of covering certain risks with insurance9
Vehicle fleet insurance
Given the importance of the fleet used by La Poste
(65,900 internal combustion and electric vehicles), La Poste
has set up an array of specific insurances: service vehicles
are covered solely by third parties, with a deductible of
€250,000 per claim and a retention limit of €600,000.
Fully comprehensive insurance has been taken out for
company cars.
The Group also offers “work car” coverage to employees
using their own vehicles for business purposes.
Liability insurance
A “general and professional liability” policy for non-financial
activities covers the liability of Le Groupe La Poste and its
French and foreign subsidiaries. Deductibles are adapted
to the nature of the risk and beneficiaries of coverage. The
main deductibles are between €1,500 and €100,000.
This coverage has a maximum limit of €70 million.
Professional liability insurance is also taken out for financial
activities, covering errors or omissions made in banking
activities (professional liability for financial activities and
consulting).
Then there is obligatory coverage for insurance brokerage,
management and real estate transactions, as well as for
the employees concerned.
There is also liability insurance for the corporate officers,
covering all directors of the Group and its subsidiaries, as
listed in the policy, against the financial consequences of any
claim made against them, including the cost of defending
civil, administrative, arbitration or criminal proceedings, or
the cost of reaching an out-of-court settlement.
Other insurance
Transport insurance
The Group has two policies:
one specific to GeoPost and its French and foreign
subsidiaries; and
the other specific to the French postal business.
These policies cover the contractual and professional
liability of the Group’s various entities and subcontractors,
damage to Group property, damage to third-party property
held by the Group, and transfer of funds and securities.
Building insurance
As owner, the Group takes out building policies including
two insurance programs to automatically cover any
operation for up to €10 million:
one is called “all site risks” to cover material damage
that may occur to buildings under construction;
the other is called “building damage insurance” to cover
hidden faults that emerge on these buildings within
10 years after they have been signed off.
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Risk factors Policy of covering certain risks with insurance 9
Events and exhibitions insurance
This mandatory insurance covers the Group’s liability as
both organizer and participant.
The Group has not taken out any “key employee” insurance.
Deprived urban area insurance (ZUS)
and insurance to protect employees victims
of crime (APAVI)
These insurance policies cover material damage and
personal injury to Group employees at work or while
performing their job.
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10.1 Highlights 2013 136
10.1.1 Appointments to Group corporate governance bodies . . . . . . . . . . . . . . . 136
10.1.2 Economic and financial environment: a slow recovery . . . . . . 136
10.1.3 Regulatory environment . . . . . . . . . . 13810.1.4 Mergers and acquisitions and
expansion of the Group’s business portfolio . . . . . . . . . . . . . . . . . . . . . . . . 139
10.1.5 Securing the Group’s financial structure . . . . . . . . . . . . . . . . . . . . . . . 142
10.1.6 The Group’s commitment to responsible development . . . . . . . . . . 142
10.1.7 La Poste, a responsible employer . . . 145
10.2 Summary of Le Groupe La Poste
consolidated results 146
10.2.1 Operating revenue . . . . . . . . . . . . . . . 14710.2.2 Operating profit . . . . . . . . . . . . . . . . . . 14810.2.3 Other key aggregates . . . . . . . . . . . . . 149
10.3 Operating results by business
segment 149
10.3.1 Mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15010.3.2 Parcels-Express . . . . . . . . . . . . . . . . . 15210.3.3 Banking Activities . . . . . . . . . . . . . . . . 15410.3.4 Retail Brand. . . . . . . . . . . . . . . . . . . . . 15810.3.5 Real estate . . . . . . . . . . . . . . . . . . . . . . 15910.3.6 Other segments. . . . . . . . . . . . . . . . . . 160
10.4 Other income statement
aggregates 161
10.4.1 Financial profit/(loss) . . . . . . . . . . . . . .16110.4.2 Net profit, Group share . . . . . . . . . . . 162
10.5 Debt and financial strength 162
10.5.1 Change in net debt . . . . . . . . . . . . . . . 16310.5.2 Change in cash and cash equivalents 16610.5.3 Breakdown of financial debt . . . . . . . .16710.5.4 Equity and financial structure . . . . . . 16810.5.5 Credit rating . . . . . . . . . . . . . . . . . . . . 169
10.6 Analysis of the parent company
financial statements 169
10.6.1 Operating profit/(loss) . . . . . . . . . . . . 16910.6.2 Financial profit/(loss) . . . . . . . . . . . . . 17010.6.3 Net profit/ (loss) . . . . . . . . . . . . . . . . . 17010.6.4 Balance sheet . . . . . . . . . . . . . . . . . . . 171
10.7 Other financial information 172
10.8 Miscellaneous 173
10.9 Post balance sheet events 173
10Review of the financial position
and results
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Review of the financial position and results Highlights 201310
The financial data set out in this part of the document are taken from the consolidated financial statements of the Group
prepared in accordance with IFRS and historic data.
The values in the tables are generally expressed in millions of euros. Rounding them may, in some cases, lead to slight
discrepancies in totals or in variations.
10.1 Highlights 2013
10.1.1 Appointments to Group corporate governance bodies
10.1.1.1 Philippe Wahl appointed Chairman and Chief Executive Officer of La Poste S.A.
During the Council of Ministers meeting on Wednesday,
25 September 2013 and on the Government's proposal,
Philippe Wahl was appointed Chairman and Chief Executive
Officer of La Poste S.A. by the French President of the
Republic.
He succeeds Jean-Paul Bailly who early July announced
his decision not to serve his full term of office expiring in
November 2014.
10.1.1.2 Remy Weber appointed Chairman of the Management Board of La Banque Postale
On Tuesday, 15 October 2013, Remy Weber was appointed
Chairman of La Banque Postale Management Board by
La Banque Postale Supervisory Board Chairman, on a
proposal from Philippe Wahl.
At this meeting, Philippe Wahl was appointed Chairman of
the Supervisory Board of La Banque Postale as Jean-Paul
Bailly's replacement.
Remy Weber was also appointed Group Deputy Chief
Executive Officer and member of the Executive Committee.
10.1.2 Economic and financial environment: a slow recovery
Owing to its banking activities, the Group is sensitive
to interest rate fluctuations, and to a lesser extent to
developments on the financial markets. Given its position
in the service activities sector, the various Business Lines
of the Group are more generally influenced by economic
conditions and by changes in labour costs, particularly
in France. Oil prices and exchange rates, particularly in
relation to the US dollar and pound sterling, given the size
of GeoPost activities in the UK, are very important both for
the Group's logistics and international businesses.
10.1.2.1 A global growth, gradually picking up
After the sharp slowdown in 2011-2012, global growth
gradually resumed in 2013. The euro zone emerged from
recession in the spring. The US economy, while hampered
by cuts in the federal budget, picked up steam after a very
depressed start to the year. Lastly, Chinese growth resumed
little by little. By contrast, the economy in several emerging
countries (Brazil, India, Russia, etc.) has been held back by
various domestic imbalances.
10.1.2.2 A slow recovery from recession in the euro zone
After six consecutive quarters of GDP contraction, the
euro zone finally emerged from recession as from the
second quarter of 2013. Signs of stabilization and even
economic recovery are visible in the most stricken euro
zone countries. 2013 also featured further progress in
stabilising the euro zone. Indeed, several countries (e.g.
Ireland, Portugal and Spain) regained competitiveness and
improved their current external account deficits, and there
was agreement on the Banking Union.
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Review of the financial position and results Highlights 2013 10
However, the recovery is s low and fragi le . The
unemployment rate peaked at a high level in the euro zone
(around 12%) and at record highs in some countries (e.g.
25% in Spain). As a result, wages are rising very slowly,
which, combined with moderate energy prices, explains why
inflation is low (0.8% year on year in December for the entire
euro zone). Many other constraints are still holding back
the recovery including persistently high interest rates in the
so-called “peripheral” countries, ongoing, albeit mitigated,
efforts to cut budget deficits and the need to reduce private
sector debt in some countries (notably Spain).
10.1.2.3 A still very tenuous economic recovery in France
Reflecting the euro zone as a whole, France enjoyed
marginal GDP growth in the 2nd quarter, after six months
of falling GDP. This recovery was boosted by non-recurring
factors, particularly linked to the weather, hence there was
a decline in GDP in the 3rd quarter. 4th quarter GDP grew
by 0.3%, boosted by a bounce in domestic consumption,
investment and exports. GDP growth for the whole of 2013
also came in at 0.3%.
In this environment, domestic consumption, which no
longer drives the French economy as it used to in the early
2000s, only edged up 0.4% in 2013. Nevertheless, thanks to
low inflation (+0.7% year on year in December), domestic
purchasing power was a little higher in 2013, having fallen
in 2012. With regard to corporates, while their financial
health remained weak given that their operating margins
are at a 30-year low, the decline in business investment
bottomed out in 2013 and saw a slight improvement in
future prospects.
10.1.2.4 Interest rates still very low
While the Federal Reserve held its benchmark rate around
0.1%, the European Central Bank (ECB) once again lowered
its benchmark rate to 0.50% in May followed by 0.25% in
November, to foster a recovery in the euro zone and in
response to low inflation. In addition, the ECB once again
took exceptional steps to refinance banks at fixed rates for
unlimited amounts to avert any liquidity shortfall.
Consequently, short-term interest rates in the larger euro
zone countries (notably Germany and France) remained
exceptionally low, as did interbank rates. The EURIBOR
3 months rate averaged 0.2% during the year while EONIA
was just below 0.1%.
The rates of the highest rated euro zone Government
bonds also remained very low in 2013 (averaging 2.2% for
10-year French government bonds OAT and 1.6% for 10-year
German Government bonds during the year). Nevertheless,
after hitting a low in the spring (1.8% for French government
bonds in April 2013), the trend has somewhat turned around
(2.3% in December 2013), fuelled by US long-term rates.
Indeed, the improved US economy prompted the Fed to first
announce and then, at the end of 2013, begin reducing its
monthly bond purchase programme.
10.1.2.5 Bounce in the euro
Despite a more buoyant economy in the US, the euro tended
to appreciate against the dollar in 2013 (monthly average of
€1: $1.37 in December 2013 against €1: $1.31 in December
2012). This increase has two causes: (i) a gradual smoothing
in the euro zone debt crisis following a peak in market
concerns in early summer 2012; and (ii) the fact that the
Fed has flooded the market with liquidity, unlike the ECB.
The euro also appreciated against pound sterling last year
closing at £0.84 in December 2013, up from £0.81 at year-
end 2012, even though sterling rose in the autumn on the
back of the UK economic recovery.
10.1.2.6 Stable oil prices
In 2013, the dollar oil price drifted with no specific trend
averaging just under $110 per barrel of North Sea Brent
over the year. Hit by ongoing tensions in the Middle East (e.g.
civil war in Syria, the Iran nuclear issue, unrest in Libya and
Egypt etc.), while the oil price perked up on occasions, these
were limited and temporary.
With regard to economic fundamentals, the stable oil
price is down due to constrained global demand for oil in
correlation with relatively low global growth, whereas supply
has been boosted by the ramping up of production of shale
oil in the United States.
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Review of the financial position and results Highlights 201310
10.1.3 Regulatory environment
10.1.3.1 A new business contract
The undertakings of La Poste and the French government
were redefined by the "2013-2017 business contract"
approved by the Group's Board of Directors on 22 April 2013
and signed by all participating parties on 1 July 2013.
This contract provides for:
maintaining a broad range of public service missions
assigned to La Poste: Universal Postal Service, press
transportation and delivery, banking accessibility and
regional planning;
a reinforced quality of service (Priority mail, Registered
Mail and Green Mail);
missions tailored to consumer expectations and
technological trends (e.g. online letters, range for
sending small goods);
implementation of citizenship commitments promoting
regional and business development, the most
disadvantaged people, development of the digital society
and corporate social responsibility initiatives.
For each of its missions, the tangible implications are as
follows:
Universal Postal Service: the contract provides for
several advances in terms of quality of service. It was
decided to add a clause in 2015 to adapt the contract to
mail volumes decreases among other matters.
Press transportation and delivery: the plans established
by La Poste and the French government in the 2008-
2015 Schwartz agreements have been confirmed; a
review of the mission's execution plan after 2015 will
also be planned. The 2014 Finance Act nevertheless
provides for a €50 million reduction in La Poste's
press transportation and delivery compensation in
2014 compared to that stated in the 23 July 2008
tripartite agreement. The Finance Act also provided
for terminating in 2014 the moratorium on regulated
press prices that has run since 2009, which resulted
in delaying implementation of price increases actually
paid by publishers by a year. The impact on the La Poste
financial statements of this delayed price increase was
offset by extra funding from the Government's general
budget, in order to preserve the treatment of both parties
in the agreement. The termination of the moratorium will
result in a gradual increase in postage rates for press
distribution.
Banking accessibility: this mission is confirmed.
Regional planning: on 16 January 2014, the French
government, the AMF (The French Mayor Association)
and La Poste signed the 2014-2016 local postal coverage
agreement. This agreement is in line with previous
agreements: it confirms the postal service in high priority
locations (i.e. rural areas, Zones Urbaines Sensibles and
French overseas departments) and aims to enhance the
quality of the public postal service. In this regard, two
points have been retained: i) improve digital accessibility
by introducing new computer equipment in Local Postal
Agencies and ii) search for new forms of pooling in
respect of premises or staff. In addition, this agreement
specifies rules for using the national postal equalisation
territorial fund, and its value of €170 million per year,
remains the same.
10.1.3.2 Increase in mail tariffs
Like most European operators, La Poste decided to raise
postal prices, with a view of maintaining a high-quality public
service. The increase as from 1 January 2013 averaged 2.8%
and had little impact on household budgets (around €1 per
year per household). Sensitive to the plight of businesses in
a depressed economy, La Poste restricted the price increase
for industrial mail to 1.8%. Moreover, prices of the Destineo
Esprit Libre offers designed for SMEs did not increase.
On 1 January 2014, postal prices have risen once again,
on average by 2.9%. Priority Mail and Green Mail prices
increase by €0.03. As a result, the Priority Mail rises to
€0.66 and the Green Mail rises to €0.61. The Online Mail
price remains unchanged at €0.99. The price of a stamp
corresponds to the average for other European postal
prices even though the public service commitments and
geographical coverage are more important in France:
La Poste distributes mail six days a week to all addresses
in a country with one of the largest surface areas in Europe.
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Review of the financial position and results Highlights 2013 10
10.1.3.3 Implementation of CICE (Tax Credit for Competitiveness and Employment)
CICE (tax credit for competitiveness and employment) is
designed to fund improvements in business competitiveness
principally through investment, research, innovation,
training, recruitment, exploration of new markets,
environmental and energy changes and to fund increases
in working capital.
Introduced on 1 January 2013, CICE is a corporate tax credit
intended to lower labour costs. In 2013 CICE was 4% and in
2014 is 6% of salaries not exceeding 2.5 times the French
minimum wage paid to employees during the calendar year.
CICE is recognized as a deduction from personnel expenses
and is broken down between each business segment. In
2013 CICE reduced personnel expenses by just under
€300 million, but had no impact on Group cash flow given
that a tax credit in respect of 2013 will be received in 2014
at the earliest. The Government repays any excess in CICE
that has not been used over a three-year period at the end
of this period, i.e. 2017.
Despite the sluggish economy, CICE will allow La Poste
to safeguard the Group's jobs policy in an economically
sustainable manner (including the commitment to recruit
15,000 people for the parent company from 2012 to 2014)
and to ensure its long term development backed by a
controlled yet ambitious level of capital expenditure,
including modernization, development and environmentally-
friendly investments.
10.1.3.4 Banking environment trends
2013 featured changes in the interest rate on and the
maximum limit for Livret A passbook savings accounts:
On 1 January 2013, the maximum Livret A limit rose to
€22,950, having previously increased 25% from €15,300
to €19,125 on 1 October 2012.
As from 1 February, the interest rate earned on Livret A
accounts fell from 2.25% to 1.75%, and as from 1 August
fell further from 1.75% to 1.25%, thereby reverting to
the record low reached in August 2009. This reduction
was accompanied by steps to revive construction of
social housing, including a levy, between August 2013
and February 2014 amounting €120 million, on the
savings funds. This envelope is aimed at accelerating the
construction of housing units by housing owners.
An important event in 2013 was also the European
Parliament's adoption of the CRD IV/CRR directive
transposing Basel 3 into European law (final adoption dated
27 June 2013 which, was published in the Official Journal of
the European Union).
CRD IV improves solvency by increasing the value of
equity (strengthening the Core Equity Tier 1 “CET1” and
Tier 1 ratios), by limiting the definition of equity notably
that of “pure” equity (i.e. CET1), by introducing share
capital cushions (contra-cyclical and systemic cushions
to protect capital) and by improving risk hedging (bad debt
counterparty risks on derivatives).
10.1.4 Mergers and acquisitions and expansion of the Group’s business portfolio
10.1.4.1 Development of the Mail business
Acquisition of the UK-based Pitney Bowes
international mail business
In April 2013 Asendia purchased the UK-based Pitney
Bowes international mail business. Asendia (2013 revenue
just over €450 million) is a joint venture founded in July 2012
by La Poste and Swiss Post to manage cross border mail.
The UK subsidiary of Pitney Bowes International Mail
Services posted approximately £15 million or €17.5 million
in revenue and provides international mail services in
over 215 countries, more particularly targeted at financial
services companies and publishers.
Asendia already operates in the UK, its 2013 revenue is
valued at €112 million. With this acquisition the joint venture
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shores up its market position in these two segments by
taking on new customers and by expanding its range of
publishing and relationship mail distribution solutions.
Strengthening Asendia's presence
on the international e-commerce market
In October 2013, Asendia purchased a 40% stake in
eShopWorld, an Irish-based company that has developed
a range of technology solutions and services covering the
e-commerce value chain. eShopworld posted 2013 revenue
of €12 million. Furthermore, Asendia has launched three
new e-commerce products providing tracking options
designed to deliver more secure international distribution
solutions.
Development of new services
Facteo
The Group has equipped postmen with a new working tool:
Facteo is a smartphone that postmen carry with them at all
times during their professional activities. This innovation
takes postmen into the digital era. It is designed to improve
customer relationships and develop new services. By 2013
year-end, more than 10,000 postmen were already equipped
with Facteo and by 2015 year-end all 88,000 postmen will
be equipped.
100% Choice of delivery
In order to facilitate deliveries of mail items where the
delivery requires a signature and adapt to customers' pace
of work, La Poste offers individual and business customers
two new free services. By connecting to the Internet,
customers can opt for a 2nd delivery on the day they specify
for mail and parcels items where the delivery requires a
signature. Customers can also choose another mail delivery
point in any post office they wish.
Nearly 300 million mail items where the delivery requires
a signature are distributed every year, including 62 million
which are on hold at the post office due to the recipient's
absence.
10.1.4.2 Pursuing of growth in Express
Continued acquisitions of SEUR franchises
in Spain
In July, GeoPost acquired the entire equity of the
Guadalajara and Salamanca franchises thereby raising its
equity stake in SEUR to 61.2%, including 44.3% held directly.
Investment in Colizen in France
On 28 February 2013, Chronopost acquired a 40% equity
stake in Colizen, a company specialising in fixed-delivery
times in the Paris region, which posted 2013 revenue
amounting to €2.3 million. Eventually Chronopost, French
express delivery specialist, seeks to provide this service
in large towns and to raise the bar for “premium” BtoC
delivery, which will result in improved customer satisfaction
and a higher successful delivery rate as from the first
delivery of the deliverer.
Investment in the UK in the largest European
parcel sorting hub
At the end of the first half of 2013, DPD UK purchased
a land located near a motorway junction in East Midlands
UK, with a view to establishing the largest parcels platform
in Europe. This platform, with sufficient capacity to handle
up to 70,000 parcels an hour, will process 65% of DPD's UK
parcels business.
Takeover of Tigers
GeoPost, which in 2011 acquired a 2.5% stake in Tigers,
purchased a further 63% stake in June 2013. As such,
GeoPost now holds directly nearly 66% in this international
freight forwarder operating in Asia (China), the United
States, Europe and Australia. This acquisition has enabled
GeoPost to broaden its scope of activities, develop synergies
at commercial and operational levels, and offer an
alternative to the services provided by integrators. In 2013,
Tigers posted revenue of €163 million.
GeoPost equity investment in DTDC
Early July 2013, GeoPost purchased a 40% equity interest
in DTDC, an Indian-based parcels transport company.
DTDC posted €83 million in 2013 revenue and has
7,300 employees.
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10.1.4.3 Expansion of La Banque Postale's business portfolio
Deploying the local authorities financing offer
After rolling out La Banque Postale's financing offer in
the second half of 2012, setting up La Banque Postale
Collectivités Locales marked the last step in establishing
funding schemes for the local public sector. La Banque
Postale Collectivités Locales, which is 65%-owned by
La Banque Postale and 35% by Caisse des Dépôts, was
launched in March 2013. This subsidiary markets and sells
La Banque Postale loans to local authorities and hospitals.
La Banque Postale Collectivités Locales has the status of
a banking intermediary and hosts the customer call centre
and the studies service.
Boosting the high net-worth customer offering
On 2 April 2013 La Banque Postale purchased the entire
equity of Banque Privée Européenne (BPE) from Credit
Mutuel Arkea, a mutual bank. BPE has a robust high net-
worth customer platform as well as a range of financial
products and services involving loan and savings offers.
La Banque Postale aims to offer a better service to its high
net-worth customers through this acquisition, by offering
them a full range of products and services that match their
needs. As at 31 December 2013, BPE had total consumer
and property loans outstandings close to €2.5 billion.
Furthermore, LBP Gestion Privée became a wholly-owned
La Banque Postale subsidiary on 27 June 2013, after LBP
Gestion Privée shares previously held by Oddo and Company
were redeemed.
Development of property lending and issuance
of a covered bond vehicle
La Banque Postale Home Loan SFH is a refinancing vehicle
set up in 2013 and wholly-owned by La Banque Postale. In
September 2013 La Banque Postale Home Loan SFH issued
€1 billion of covered bonds over a period of 7 years.
The yield on these bonds, which are rated AAA by S&P, is
1.962%, equivalent to the swap rate plus 16 basis points.
The bonds are secured on a portfolio of home loans granted
by La Banque Postale to its customers.
The success of this bond issue emphasizes La Banque
Postale's credit worthiness and will allow it to further
strengthen its role in the French financing residential
property market.
Launch of Paylib, a remote payment solution
On 24 September 2013, BNP Paribas, La Banque Postale
and Société Générale launched Paylib, a free service to
pay by computer, smartphone or tablet without inputting
bank details. It has been made available to their 23 million
individual customers since October.
The three banks aim to facilitate and secure purchase
transactions for e-merchants. This simple and secure
solution, which is expected to deal with fraud, will encourage
growth in buying by mobile phone "m-commerce".
10.1.4.4 LPM has nearly one million customers and is boosting its offering
On 22 April 2013 La Poste Mobile launched an offer known
as "Quatro". The latter combines SFR's triple play service
(Internet, TV and landline) with La Poste Mobile's mobile
phone packages. La Poste Mobile, which is 51% held by
Le Groupe La Poste, thus improves its service offering via
a broadband offer and a quadruple play offer and can now
offer customers a complete telecommunications offering at
very competitive rates.
By the end of 2013 La Poste Mobile had chalked up
963,000 customers (including 20,000 quadruple play). This
bears out the effectiveness of the growth model and the
attraction of its telephone offers, which recently added 4G.
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10.1.5 Securing the Group’s financial structure
10.1.5.1 La Poste capital increase: third and final instalment
As part of La Poste's €2.7 billion capital increase, which
was subscribed by the French government and Caisse des
Dépôts, a third and final payment amounting to €600 million
was made in April 2013 by the exercise of equity warrants,
at a ratio of two shares for seven warrants. 100 million new
shares were issued for this purpose.
Caisse des Dépôts now holds 26.32% of the share capital
and voting rights of Le Groupe La Poste.
Consol idated equ i ty Group share amounted to
€8,460 million at 31 December 2013 and the "Net Debt (1)/
Equity" ratio has been reduced to 0.45.
10.1.5.2 Increase in La Banque Postale's equity
At the 12 December 2013 Board meeting, the Group
authorized an increase in La Banque Postale's equity
amounting to over €1 billion. This transaction is a major
step forward to consolidate La Banque Postale's financial
structure in line with the growth strategy of its loan
business.
This equity increase took place in December 2013 via
a €800 million subordinate hybrid Tier 1 issue, fully
subscribed by Le Groupe La Poste, and via a capital increase
paid by transfer of the La Banque Postale head office valued
at €228 million.
10.1.5.3 €250 million bond issue
The Group successfully completed a new €250 million bond
issue in November. This issue was added to the existing
€750 million bond issued in November 2012 maturing in
November 2024 with an annual 2.75% coupon. The Group
is thus meeting its objective to actively manage its financial
resources while optimising the cost. The average cost
of Group debt was 3% in 2013 at an average maturity of
6.7 years.
10.1.6 The Group’s commitment to responsible development
The Group summarises below a selection of 2013
achievements in promoting responsible development. This
is based on ongoing and recognized efforts to combat global
warming while promoting the circular economy and strong
social commitment to disadvantaged people.
10.1.6.1 Poste Immo signs the energy efficiency Charter for office buildings
In late October 2013, Poste Immo signed the energy
efficiency Charter for public and private office buildings
in the presence of the Minister for Regional Equality and
Housing and real estate business actors.
The Charter was prepared in conjunction with the
"sustainable building" plan and anticipates the decree
on the obligation to renovate office buildings, which
is due to be published in 2014, in accordance with the
French President's commitment made during the second
environmental conference dated 20 September 2013.
Under Poste Immo's strategic plan, the Company intends to
reduce the energy consumption of the Group's real estate
by 25% between 2010 and 2018.
(1) Group net debt excludes the banking business for which this is not relevant.
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10.1.6.2 Carbon Neutrality and Recy’go awards
Le Groupe La Poste received two awards under the Fair
Business Reporting Awards, sponsored by the Ministry of
Ecology, Sustainable Development, Transport and Housing:
The Mail's 2012 “Carbon Neutrality” campaign won the
1st prize for "Publishing".
The “La Poste Business Solutions” campaign as part
of the launch of Recy’go (offering to collect office
paper of SMEs and local authorities launched in 2012),
was awarded the Prize from the public in the “Press
Advertising” category.
Recy’go also received a special “Top Com” sustainable
development award for communication strategies
promoting sustainable development activities in line with
the directives of the Grenelle de l’environnement and the
ARPP (French advertising regulatory authority).
10.1.6.3 Ongoing investment in sustainable mobility
Greenovia, a Groupe La Poste subsidiary, has been selected
by the French government's procurement department to
support the introduction of electric and hybrid cars for
ministerial fleets.
Since early 2013, Greenovia assists the inter-ministerial
programme to support rationalising the vehicle fleet in the
definition and coordination of its activity programmes with
regard to the purchase of new vehicles. This programme
epitomises the French government's commitment (1) to
deploy recharging facilities and a fleet of electric and hybrid
vehicles. Greenovia's assistance allows Mipa to monitor
departmental action plans and support the Government's
Departments at each stage of the deployment.
Furthermore, Chronopost has opened a new urban
logistics centre—"ELU" in Paris city centre (Beaugrenelle)
designed to consolidate flows and deliver parcels in nearby
neighbourhoods by favouring proximity to recipients.
Backed by a fleet of 30 electric utility vehicles, which must
be under two metres high, this urban logistics centre
will lead to nearly an 80% reduction in CO2 while halving
the number of miles travelled. This new organization
has positive impacts on the environment, the well-being
of local residents and represents an innovative solution
for customers in the relevant district. ELU Beaugrenelle
was awarded the 2013 SITL innovation prize in the “Best
Innovation” category.
Lastly, during the mobility week, which took place from 16
to 22 September, the Group launched its carpooling website
for all staff. Drivers and passengers can now travel together.
10.1.6.4 Commitment to the circular economy
Circular Economy Institute Foundation
(Fondation de l’Institut de l’économie circulaire)
La Poste is one of the eight founding members of the
circular economy Institute that was launched in early
February. The objective of this institute is to promote a
new economy inspired by natural ecosystems. In this
model, waste from some people becomes a resource for
others, either by returning it to the land, or by reusing it to
manufacture other products.
Collection of printer cartridges with
Cart'Touch
Cart'Touch is an association of 15 brands of printers which
promotes sustainable practices and responsible disposal
of used cartridges.
For the very first time, Cart'Touch offered teaming up with
La Poste to collect used print cartridges for businesses on
a voluntary basis. The results of these collections were very
positive for all parties involved in this project.
Collect ing trays were provided to businesses in
113 La Poste sites dedicated for businesses areas from
January to July 2013. This experimental project resulted in
collecting 7,500 cartridges. Through this project La Poste
demonstrates how it can effectively and professionally help
to collect printer cartridges.
Cart'Touch is now expected to decide on another targeted
project. In the meantime La Poste will begin collecting its
own cartridges.
(1) French Prime Minister's December 2012 Circular: 25% of vehicles replaced must be electric or hybrid.
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10.1.6.5 Commitment towards disadvantaged people
Setting up L’Appui, a scheme for banking and
budgeting support
La Banque Postale actively helps to combat exclusion from
the banking system and every day strives to give everyone
access to a high quality banking service. By setting up
"L’Appui", a platform providing banking and budgeting
advice and guidance, La Banque Postale has come up with
a major innovation in supporting financially disadvantaged
customers. Customers are sent by the financial centres,
and as from 2014, by post offices or by La Banque Postale
Financement in particular, to L’Appui, where 11 trained
advisors listen to them. Depending on their needs three
different services are offered: they are provided banking and
budgeting support, they are put in contact with partners,
charities or social services so they can exercise their rights
and lastly they are given access to charitable programmes
such as Mobiliz (guiding people to find a job). Opened in
November 2013, L’Appui will be rolled out throughout France
in the second half of 2014.
Partnership with the national charity for
local programmes (Association nationale des missions locales)
La Banque Postale offered ANDML (national charity for local
programmes) to set up a "financial training" programme
taking the form of banking and budgeting workshops
for young people. To run these workshops, 50 employee
volunteers were trained by La Banque Postale in June 2013.
In conjunction with a dedicated e-volunteering collective
area, the employee volunteers will train ANDML staff, young
civic service volunteers contracted with ANDML and even
the general public beneficiaries of ANDML's charitable
services themselves. Tested from June to December 2013,
this programme will be completed and developed during
2014.
"L’initiative" to combat banking exclusion
"The Initiative to Combat Banking Exclusion" is a reflection
and action club set up by La Banque Postale in October
2012 and deployed during first half 2013. The club includes
all parties involved in the social and charitable community
such as ATD, the French Red Cross, Restos du cœur and
Secours catholique, who offer to provide their know-how
and experience to support the debate by the Government
authorities so that new operational programmes to combat
banking exclusion be set in motion.
The club is open to the rest of the social and charitable
community as well as other banks who wish to develop new
initiatives to combat banking and financial exclusion.
Agreements with Nos Quartiers ont des Talents
(our neighbourhoods have talent—"NQT") and
the Écoles de la seconde chance (2nd chance
schools—"E2C")
The Group sought to engage with young people from
disadvantaged neighbourhoods or who meet certain social
criteria so that they can be supported in their search for a
job. With NQT, Le Groupe La Poste volunteers undertake
to help young people to once again be part of the world of
employment With E2C, Le Groupe La Poste supports the
social inclusion of unqualified school leavers.
La Poste is stepping up its partnership with
Extramuros, a job integration firm
Mail signed a new agreement with Extramuros (a job
integration firm that designs, manufactures and distributes
products made from recycled materials) so as to play an
active role in its operations and to create jobs.
Award for "L’Envol", La Banque Postale
campus wins Mecenova prizes
The La Banque Postale campus was set up in May 2012
to support high school leavers from poor backgrounds to
go on to study at top schools and universities. On 3 April
L’Envol received an award at the Produrable show in Paris.
Attended by Philippe Wahl, then Chairman of the La Banque
Postale Management Board, some sponsors and students,
La Banque Postale was awarded the Mecenova France prize
for a program designed to promote equality of opportunity.
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10.1.7 La Poste, a responsible employer
10.1.7.1 A company committed to Quality of life at work
In line with the findings of the La Poste Commission of
Major Dialogue issued on 11 September 2012, on 22 January
2013 La Poste senior management and FO, CFDT, CGC-
UNSA and CFTC (French trade unions) signed a 3-year
agreement relating to Quality of life at work covering all
postal workers.
This agreement makes specific and innovative commitments
to improve Quality of life at work.
It sets out 17 immediate measures and eight projects
requiring further negotiation. These measures include:
introducing a change management method to be applied
for all organizational changes after consulting with the
staff involved via an impact study;
introducing job redesign systems for seniors, state
employees and employees;
introducing teleworking, on a voluntary basis;
an employee-relations warning system regarding
compliance with employee-relations rules and collective
agreements;
training new managers as soon as they take up their
duties;
turning 3,000 temporary employees into permanent
employees, with improved seniority transfer rights;
establishing over 1,000 local HR managers.
During 2013, five of the eight negotiations stated above
were initiated: career advancement of postal workers,
organization of work, teleworking, healthcare at work and
setting up a Group committee.
On 25 June 2013, the teleworking negotiation concluded
in an agreement signed between La Poste and CGT, FO,
CFDT, CGC-UNSA and CFTC (trade unions). In addition
to the immediate teleworking measure, this agreement
specified detailed procedures at La Poste. Its main purpose
is to enable postal workers to better balance their jobs
with private life and to promote employment of disabled
postal workers. The implementation of teleworking also
contributes to the risk prevention policy (by avoiding driving,
stress etc.) and the Group's sustainable development
strategy (less travel and so lower CO2 emissions).
The generation contract negotiation which took place at
the same time as negotiating career advancement, led to
an agreement on 22 January 2014 with FO, CFDT, CFTC
and CGC-UNSA (trade unions). The agreement focuses on
long-term employment of young people, elderly employees
staying in employment, and transferring knowledge and
skills.
The three other negotiations, concerning communication
with staff, HR policy and HR guidelines, will commence in
2014.
Quality of life at work at work is a key priority for the Group.
This includes being a constantly evolving organization,
adapting activities to the pace of the work environment,
fully respecting people and providing postal workers with
genuine opportunities for recognition and development, in
addition to just retaining the job.
10.1.7.2 A leading player in the French job market
Le Groupe La Poste follows a responsible employment
policy and manages its workforce and personnel expenses
in a very uncertain economic environment, while being a
leading player in the French job market:
commitment to recruit 15,000 people in the parent
company from 2012 to 2014: 5,298 permanent employees
were hired in 2013, including 1,390 who were previously
temporary employees;
employment policy that supports recruitment of
young people and social inclusion: commitment to
recruit 1,000 contracts for the future in 2013-2014
with prospects of being rapidly hired on permanent
employment contracts, part-time work policy and
interns. As at 31 December 2013, 626 people were
recruited under contracts for the future and 5,106 part-
time work contracts were signed;
active and tailored policy to manage employee age that
takes into account a longer working life expectancy, the
Group's demographic structure and the economic context.
An employment policy that promotes adapting work for
elderly employees and confirms the desire to hire and
retain disabled people: since the disability agreement was
signed in 2012, 187 disabled people have been recruited
as permanent or temporary (over six months) employees
and people under part-time work contracts.
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10.1.7.3 Promote a strong and shared managerial culture
The Group strives to promote a postal managerial model
which strengthens adherence, rallying, cooperation,
efficiency and well-being at work among postal workers.
This involves developing responsible management, attentive
to employees' personal situations and sensitive to new
occupational risks, and better trained and supported
managers who are freed from non-essential tasks and act
with more autonomy.
In support of this goal, in 2013 the Group established
the Institute of Management, with the objective of giving
managers a strong and shared culture. Based on the
principles of openness, cohesion and innovation, the
Institute of Management is targeting all Group managers
with regard to common topics including Group culture,
managerial identity and innovation. The Institute of
Management also addresses the need for managers to
adapt to new trends and changes in society.
Designed in close cooperation with the Business Lines and
corporate management, the Institute of Management offers
individual and collective development of managerial skills in
addition to skills taught by the Business Line Universities.
10.2 Summary of Le Groupe La Poste consolidated results
(€ million) 2013 2012Change
Change at constant consolidation and
exchange rates(€m) (as a %) (€m) (as a %)
Group operating performance
Operating revenue 22,084 21,658 +426 +2.0% +217 +1.0%
Operating profit/(loss) 770 816 -46 -5.6% -40 -5.0%
Operating margin 3.5% 3.8% - -0.3 pt
Net profit, Group share / Revenue 627 479 +148 +30.9%
Net profit/(loss), Group share as %
of revenue 2.8% 2.2% - 0.6 pt
Key figures—La Banque Postale
Net Banking Income 5,539 5.241 +298 +5.7% +257 +4.9%
Operating ratio 84.9% 85.8% - -0.9 pt
Core Tier One (Basel 2.5) 11.4% 12.1% - -0.7 pt
Loan to deposit ratio 67% 59% +8.0 pt
(€ million) 2013 2012Change
(€m) (as a %)
Key financial indicators
Net debt (a) 3,778 3,460 +318 +9.2%
Equity, Group share 8,460 7,470 +990 +13.2%
Free cash flows (b) (505) 467 -973 ns
Net debt / equity—Group share 0.45 0.46 - -0.0 pt
Net profit / equity (Group share) 7.4% 6.4% - +1.0 pt
(a) Group net debt excludes La Banque Postale for which this is not relevant.
(b) Free cash flow = cash flows from operating activities + cash flow from investing activities (including 2013 €800 million increase in LBP equity via hybrid
bonds).
ns = not significant.
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10.2.1 Operating revenue
In 2013, Le Groupe La Poste operating revenue came in at €22,084 million, up 2.0% compared to 2012.
In 2013, Group operating revenue breaks down as follows:
(€ million) 2013 2012Change
Change at constant consolidation and
exchange rates(€m) (as a %) (€m) (as a %)
Mail 11,103 11,410 -307 -2.7% -396 -3.5%
Parcels-Express 5,988 5,580 +408 +7.3% +328 +5.9%
Banking activities 5,539 5,241 +298 +5.7% +257 +4.9%
Other segments and intercompany (546) (573) +27 -4.6% +27 -4.6%
Operating revenue 22,084 21,658 +426 +2.0% +217 +1.0%
The €426 million increase in Group operating revenue can
be broken down as follows:
Revenue growth at constant consolidation and exchange
rates of €217 million or 1.0%. Adjusted for the home
loan savings provision (€160 million change), operating
revenue grew by 0.3%.
The impact of consolidation changes of +€259 million,
of which Sofipost (€89 million largely from 2012
acquisitions of Orium, Morin, Adverline and Cabestan),
GeoPost (€130 million largely from 2012 and 2013
purchases of SEUR franchises, the 2013 acquisition of
Tigers and the 2013 equity investment in DTDC) and
La Banque Postale (€41 million in respect of the Banque
Privée Européenne).
Currency losses amounted to €50 million, including
a €30 million loss on pound sterling (GBP) and an
€11.1 million loss on the South African rand (ZAR).
With regard to the operating segments, 2013 featured the
following key items:
2.7% reduction in Mail revenue compared to the prior
year. The parent company's historical mail delivery
business posted a 5.5% reduction in volumes and to
a lesser extent, a negative product mix variance. This
decrease is partially offset by a January 2013 price
increase in postage stamps. The downward trend was
worsened in 2013 by a €15 million reduction in the
press (1) compensation and the lack of elections during
the year. To mitigate the impact of the lower volumes,
Mail is engaged in an active innovation policy designed
to enhance the value of mail services and to offer new
services largely on the back of its strong local presence
represented by postmen who will progressively be
connected via smartphone (over 10,000 postmen
equipped with smartphones at 31 December 2013 as
part of the Facteo project).
2013 Sofipost revenue increased by €74 million due
to acquisitions (€89 million). Sofipost's like-for-like
revenue was down 1.4% due to a difficult year especially
on Mediapost France activity (volumes of printed
advertising down) and Viapost, which was hit by the
economic recession.
Continued growth in Parcels-Express revenue (up 7.3%).
ColiPoste revenue in France increased by 2.8% in a tough
competitive environment, fuelled by growth in volumes
and in particular BtoC Colissimo products, which were
supported by e-commerce operators' growth.
Express revenue rose 9.1% boosted by a surge in
volumes despite downward pressure on prices. Like-
for-like growth amounted to 7.2%. All countries posted
increases, especially UK, France, the Benelux countries
and Spain.
La Banque Postale Net Banking Income rose 5.7%
(4.9% at constant consolidation and exchange rates).
The increase amounts to 2.7% after adjusting for
changes in the home loan saving provisions and the
(1) In accordance with the Schwartz 2008-2015 agreements relating to press transport and distribution.
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EIC fine (imposed on the large French banks by the
French Competition authority for their pricing policy
regarding digitisation of cheques). La Banque Postale's
performance includes revenue increases from customer
loans and commissions that, in line with their growth,
are naturally replacing income from sovereign debt
investment portfolios.
La Poste Mobile, which is included in the "Other
segments and intercompany" line, turned in revenues of
€75 million based on 51% Group share, which represents
growth over 2012 of 6.9%, boosted by its relevant offering.
The total number of customers increased from 319,000
during 2013 to 963,000 at 31 December 2013 (including
20,000 quaruple play packages). The one million
customers mark was reached in January 2014.
10.2.2 Operating profit
2013 Group operating profit amounted to €770 million, down 5.6% compared to 2012 and down 5.0% at constant consolidation
and exchange rates, a fall of €40 million.
(€ million) 2013 2012Change
Change at constant consolidation and
exchange rates(€m) (as a %) (€m) (as a %)
Mail 471 684 -213 -31.1% -208 -30.6%
Parcels-Express 419 403 +17 +4.1% +19 +4.9%
Banking activities 708 621 +87 +14.0% +85 +13.7%
Retail Brand 34 16 +17 ns +17 ns
Real estate 135 109 +26 +24.1% +26 +24.1%
Shared services (211) (188) -24 +12.5% -24 +12.5%
Unallocated and eliminations (786) (829) +43 -5.2% +43 -5.2%
Operating profit/(loss) 770 816 -46 -5.6% -40 -5.0%ns = not significant.
This reduction was due to:
a €213 million dip in Mail operating profit in line with
the 5.5% reduction in parent company mail volumes
that price increases, reorganization programmes and
innovation did not completely offset. This resulted in
a €213 million decrease in the parent company Mail
operating profit. Sofipost’s 2013 operating profit held
up (€67 million) at a level close to the prior year (2012
operating profit included nevertheless a €17 million
capital gain on the founding of Asendia);
boosted by a sharp increase in revenue, Parcels-Express
turned in operating profit of €419 million, up 4.1%. Note
that in 2013 Parcels-Express launched new projects
designed to improve the quality of the services offering
(information systems, selected deliveries etc.). The
benefits of these projects will be felt gradually over time;
an €87 million increase in the operating profit of the
Banking activities primarily driven by higher volumes on
customer loans and commissions and cost control;
Real estate posted operating profit of €135 million
up €26 million compared with that of 2012, including,
€19 million of gains on asset sales. A key item in 2013
was a €65 million gain on the sale of the real estate
head office to La Banque Postale. This capital gain is
eliminated on Group consolidation. Excluding capital
gains from asset sales, Poste Immo's operating profit
rose by €7 million;
the improved change in the operating profit of
'Unallocated' is largely due to lower expense in 2013 on
the Group's end-of-career mechanisms.
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10.2.3 Other key aggregates
10.2.3.1 Financial profit/(loss)
Financial profit rose by €61 million, including €37 million
due to the change in fair value of swaps on debt and the
debt credit spread and €31 million due to lower discounting
expense on post-employment benefits.
10.2.3.2 Profit before tax
Profit before tax increased by €16 million compared to 2012,
to €548 million. After adjusting for CICE (French tax credit
for competitiveness and employment) which amounted to
€297 million, not taxable, profit before tax amounted to
€251 million, down €281 million from €532 million in 2012,
thereby leading to a €104 million reduction in the tax charge
to €127 million, from a tax charge of €231 million in 2012.
10.2.3.3 Net profit
Net profit, Group share amounting to €627 million increased
by €148 million, including a €104 million lower tax charge
and a lower effective tax rate (falling from 43.5% to 23.3%)
due to CICE not being taxable. The share of profit of equity
associates came in at €36 million, including €24 million in
respect of CNP Assurances.
10.2.3.4 Free cash flows
The net cash outflow of €505 million was €973 million
higher than the 2012 net outflow due to purchase of
La Banque Postale hybrid bonds amounting to €800 million
and a €140 million reduction in cash flows from operating
activities caused by lower mail volumes.
After the payment of the third and final €600 million
instalment of the capital increase to which the State
and the Caisse des Dépôts were committed, payment of
dividends and interests (€175 million and €172 million
respectively), Group net debt (1) increased by €318 million
to €3,778 million at 31 December 2013.
10.2.3.5 Financial Ratio
The Net Debt/Equity ratio was unchanged at 0.45.
10.3 Operating results by business segment
Segment reporting is presented in accordance with IFRS 8—
Operating Segments. The definition of operating segments
is based on Le Groupe La Poste's current management
structure. A segment is a subgroup for which separate
financial information is available and regularly reviewed
by the Group’s Executive Management for the purpose of
allocating resources to that segment and assessing its
performance.
The criteria used to define business segments specifically
include: the nature of the products distributed, the type
or class of customer for whom they are intended, the
production process, the distribution network and the
regulatory environment. The operating segments reported
by Le Groupe La Poste in 2013 are as follows:
Mail: the entire La Poste parent company Mail business
including collection, sorting, and delivery of letters,
advertising and newspapers, as well as the Sofipost
subgroup companies;
Parcels-Express: Parcels represents the entire business
activity performed by La Poste under the ColiPoste brand
("toC" in France). Express includes the Group’s Express
BtoB and BtoC activities in France and abroad under
the GeoPost subgroup brands, and especially DPD,
Chronopost, Exapaq and SEUR;
(1) Group net debt excludes La Banque Postale for which this is not relevant.
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Banking activities: includes the Banking and Insurance
activities of the La Banque Postale subgroup and the
shared Resources unit;
La Poste Retail Brand: sale and distribution to the retail
customers of Le Groupe La Poste products and services,
together with mobile telephone services;
Real estate: includes Poste Immo’s real estate portfolio
management activities, and La Poste’s real estate
Operations Department;
Shared services: Head Office support and services
Departments (Group parent company);
Unallocated: includes the costs of the Universal Postal
Service accessibility mission, the costs of the regional
planning mission and the corresponding discount on
local tax charges, and lastly, the transitional expenses
relating to end-of-career mechanisms borne by the
Group, and as such not allocated to the Business Lines.
Each business segment’s operating revenue corresponds
to the total segment revenue including intercompany
transactions but excludes intra-segment revenue.
By a press release dated 28 January 2014, the Group
announced that ColiPoste will join the Mail segment.
December 2013(€ million) Mail
Parcels-Express
Banking activities
Retail Brand
Real estate
Shared services Unallocated Elim. Group
Operating revenue 11,103 5,988 5,539 4,230 908 825 (6,509) 22,084
Operating expenses (10,632) (5,569) (4,831) (4,196) (773) (1,037) (719) 6,442 (21,314)
Operating profit/(loss) 471 419 708 34 135 (211) (719) (67) 770
% of operating revenue 4.2% 7.0% 12.7% 3.5%
December 2012(€ million) Mail
Parcels-Express
Banking activities
Retail Brand
Real estate
Shared services Unallocated Elim. Group
Operating revenue 11,410 5,580 5,241 4,231 851 840 (6,496) 21,658
Operating expenses (10,725) (5,177) (4,620) (4,215) (742) (1,028) (832) 6,497 (20,842)
Operating profit/(loss) 684 403 621 16 109 (187) (832) 3 816
% of operating revenue 6.0% 7.2% 11.9% 3.8%
10.3.1 Mail
The Mail segment includes all of the La Poste parent
company’s Mail business (i.e. collecting, sorting and
delivering letters, advertising and newspapers), as well as
the Sofipost subgroup companies, which are positioned on
strategic and fast-growing markets, namely:
Mediapost : relat ionship market ing and local
communications;
Docapost : document and data solut ions and
management services;
Viapost: logistics (including the e-commerce unit), and
transport;
Asendia: processing and routing cross-border mail,
company founded in July 2012 as a joint venture co-
owned by Swiss Post.
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(€ million) 2013 2012Change
(€m) (as a %)
Revenue 11,103 11,410 -307 -2.7%
Of which intercompany revenue 10,461 10,773 -312 -2.9%
Operating expenses (10,632) (10,726) +94 -0.9%
Operating profit/(loss) 471 684 -213 -31.1%
As a % of revenue 4.2% 6.0% -1.8 pt
10.3.1.1 Parent company mail
2013 revenue amounted to €9,892 million, down 3.7% or
€381 million compared to 31 December 2012. This change
can be explained by:
the 2013 5.5% reduction in traffic versus 2012 was partly
caused by large customers cost cutting and sending mail
electronically—an underlying market trend accelerated
by the depressed economy in 2013, and partly by distance
selling companies cutting back on advertising. The effect
of this €494 million reduction in traffic comes on top of a
product mix negative variance of €52 million;
2012 revenue was boosted €81 million by a one-off
increase in volumes due to the presidential and
parliamentary elections;
the 1 January 2013 price increase offset these negative
trends by €240 million;
lastly, International Sales and Services grew by
€6 million, particularly for collection and delivery
services.
To respond to the decrease in traditional business, Mail
continues to come up with innovative offers designed
to enhance the value of mail and to offer new services
including keeping postmen connected via their smartphone:
the FACTEO project shortens the time postmen spend on
proxies and, with live Intranet access, facilitates their
daily work while also providing commercial information to
customers and gradually developing new services. As such,
10,000 postmen were equipped as at 31 December 2013 and
all 88,000 postmen will be by 2015.
Quality of service remains high with a next-day delivery rate
for Priority Mail of 87.4% in 2013.
10.3.1.2 Sofipost
Sofipost 2013 revenue amounted to €1,211 million,
an increase of €74 million or 7%, boosted by the 2012
acquisitions of Orium, Morin, Adverline and Cabestan.
The main changes by unit break down as follows:
Mediapost Communicat ion posted revenue of
€482 million, up €30 million, buoyed by acquisitions
amounting to €23 million (acquisition of Adverline late
June 2012 and Cabestan in August 2012). Like-for-like
growth came in at €6 million or 1.4% mainly in relation
to the advertising business of Mediapost Publicité in a
declining market; Mediapost Publicité is tasked with
selling mail media to national advertising agencies
and media buying firms. Buoyant new business won
by Mediapost France, driven by a light upswing in the
printed advertising market in the second half, resulted
in almost flat revenue compared to 2012.
Docapost revenue remained at similar levels to
2012 (down €1 million or 0.2%) at €418 million. BPO
(Business Process Outsourcing) revenue grew despite
the anticipated decline in cheque processing business
and volumes from EBS (Electronic Business Solutions)
offering software solutions and secure electronic
communication services. The traditional activities of
DPS (Document Process Solutions) turned in satisfactory
2013 revenue, albeit down on 2012 given one-off business
last year.
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Viapost posted revenue of €94 million, up €48 million,
including €58 mill ion related to acquisit ions:
consolidation of Orium in August 2012 and Morin in
December 2012, which positions Viapost as the No.1
independent logistics operator for e-business in France.
The like-for-like reduction of €10 million (22.6%)
primarily relates to the historical logistics business,
which declined due to a depressed market reflected
in some customers taking back processes in house.
Note that this unit still primarily sells to other Group
companies, notably in press and mail transport: Viapost's
2013 revenue before elimination of intercompany
transactions amounted to €503 million.
Asendia, posted revenue of €217 million (at 50% Group
share), which was similar to 2012.
10.3.1.3 Other key Mail indicators
2013 intercompany revenues between Mail parent company
and Sofipost totalled €711 million. The intercompany
services involved for these revenues cover:
parent company Mail services delivered to Sofipost
amounting to €153 million; these principally relate
to distribution of Mediapost Communication printed
advertising in rural areas and postage of Asendia's
international mail;
Sofipost services delivered to Mail parent company
amounting to €558 million relate primarily to the
following services:
- Mediapost Communication for marketing and
assembly of printed advertising material for
customers managed by the Mail sales forces,
- Viapost, via STP (press sorting and transport) and
Neolog (package transport and logistics services).
Total consolidated operating profit for the operational Mail
segment of €471 million reduced by €213 million or 31.1%
compared to 2012. This decrease is linked to a structural
decline in mail volumes made worse by the economic
recession which also hit the Sofipost business. The postage
price increase, the innovation policy and strict cost control
only partially made up for the downturn in business activity.
10.3.2 Parcels-Express
The Parcels-Express Business Line combines the activities
of ColiPoste and GeoPost:
ColiPoste specialises in the rapid delivery of BtoC or
CtoC parcels weighing up to 30 kg to private individuals
in France, with delivery on the second business day.
GeoPost covers the Express activities in France
and abroad under the following main brands: DPD,
Chronopost, Exapaq and SEUR. The unit’s subsidiaries
are mainly involved in the business to business (BtoB)
market, although they are increasingly involved in the
BtoC market (27% of sales in 2013).
The impact of the 2012 acquisitions (i.e. purchase of
SEUR franchises, purchase of Biocair and takeover of
IBC) as well as the 2013 acquisitions (largely new SEUR
franchises, equity in investment in DTDC and takeover of
Tigers) resulted in a total increase to GeoPost 2013 revenue
amounting to €130 million.
(€ million) 2013 2012Change
(€m) (as a %)
Revenue 5,988 5,580 +408 +7.3%
Of which intercompany revenue 5,947 5,538 +410 +7.4%
Operating expenses (5,569) (5,177) -392 +7.6%
Operating profit/(loss) 419 403 17 +4.1%
As a % of revenue 7.0% 7.2% -0.2 pt
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10.3.2.1 ColiPoste
ColiPoste revenue continued to maintain the growth
trends seen in previous years. 2013 revenue amounted to
€1,597 million, up 2.8% or €43 million compared to 2012.
This increase was driven by €47 million or 3.1% growth in
traffic (excluding impact of business days) and by positive
price and mix variances amounting to €12 million or 0.7%.
The renegotiation of pricing agreements during the second
half was successfully dealt with the decline in the average
unit price that had arisen due to a higher proportion of large
customers. These positive variances were partly offset by
a €12 million or 0.8% reduction due to a higher number of
public holidays and a €4 million reduction in services and
amounts reinvoiced.
Volumes were boosted by 6.2% growth in BtoC Colissimo,
supported by a sharp increase in business from major
e-commerce operators while CtoC and Coliéco products
declined (down 3.2% and 11.1% respectively), Coliéco
being hit by difficulties among traditional distance selling
companies.
2013 quality of service remained high and almost
unchanged compared to 2012 with a 2-day delivery rate of
93% (94% in 2012).
ColiPoste launched the "Satisfaction 2015" project during
the first half of 2013. Satisfaction 2015 is a commitment
programme to ensure long-term performance focusing
on four points: customers (by offering innovations and
bolstering customer relations based on a high level of
on-time delivery), teamwork (by fostering a service culture
and by developing talent), business (by ensuring rapid
growth and enhancing competitiveness) and environment
(by ensuring CO2 neutral delivery and acting responsibly
towards suppliers).
10.3.2.2 GeoPost
GeoPost's 2013 revenue amounted to €4,391 million,
up 9.1% or €365 million compared to 2012. Excluding
acquisitions and disposals (which contributed €130 million)
and €50 million of currency losses, like-for-like growth
came in at €285 million, up 7.2%.
This sharp growth was underpinned by positive volume and
mix variances totalling €359 million (up 8.7%), whereas
changes in prices led to a €75 million reduction. The
increase in public holidays cost €3 million. Lastly, services
and other recharges grew by €3 million.
Revenue increased in all geographical regions, albeit based
on different situations:
still significant like-for-like growth in the UK subsidiaries
(up 20%) due to considerable new business won and a
surge in volumes;
a sharp rise in France revenues, Exapaq up 5% and
Chronopost up 8%, fuelled by growth in volumes. With
regard to Chronopost, very high volumes driven by
winning major accounts and a successful launch of the
BtoC business, was accompanied by lower revenue per
unit primarily due to changes in the product mix (sharp
growth in PickUp and DropOff deliveries);
the Benelux subsidiary continues to grow (up 8%)
boosted by buoyant volume growth abroad. This
improvement also came with expansion of the PickUp
and DropOff network;
the Spanish subsidiaries increased volumes by 11%,
which began in the first half of the year, having fallen for
the previous two years. This increase was underpinned
by a sales turnaround plan launched in 2012, which has
resulted in market share gains. However, the higher
volumes were partially offset by lower revenue per unit
caused mainly by a lower average parcel weight;
the German subsidiary's sales rose 2% compared to
2012, principally driven by a price increase that was
designed to track increases in operating costs for the
sector. Volumes hardly changed in a highly competitive
market and the Group's business in Germany is still
strongly focused on the BtoB market;
revenue in Russia continue to soar (up 21%). Revenues
increased in Poland (up 5%), the Czech Republic (up
10%) and in other Eastern European subsidiaries (up
18%).
10.3.2.3 Other key Parcels-Express indicators
Total 2013 intercompany revenues in both directions
between ColiPoste and GeoPost amounted to €64 million.
The services represented by these revenues cover:
GeoPost's services for ColiPoste amounted to €61 million
and consisted of IT developments performed by GeoPost
SI, PickUp and DropOff deliveries performed by Pick-up
Services and Chronopost as well as advisory services
performed by Chronopost's industrial Department.
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ColiPoste's services for GeoPost amounted to €3 million
and consisted of invoicing parcel deliveries in France on
behalf of GeoPost's European subsidiaries.
Parcels-Express turned in 2013 operating profit of
€419 million, an increase of €17 million compared to
2012, which represents a margin of 7% marginally down
on 2012 (7.2%). The revenue increase was accompanied by
a controlled increase in ongoing expenses, even if in 2013
Parcels-Express had to cope with pressure on unit prices
caused by changes in the product and customer mix, and
one-off costs related to some strategic developments both
at ColiPoste and GeoPost to strengthen their positioning on
the promising “toC” market (i.e. PickUp and DropOff, choice
of delivery and information systems).
10.3.3 Banking Activities
The Banking segment includes La Banque Postale, its
subsidiaries and the pooled assets of both La Poste and
La Banque Postale that are subject to a cost allocation
agreement. All expenses relating to the asset pooling,
which mainly consist of costs of La Poste staff working
exclusively for La Banque Postale, are recharged at cost to
La Banque Postale.
10.3.3.1 Economic and financial environment
2013 featured record low interest rates:
EONIA rates remained under 0.1% reaching a low late
February of 0.06% while EURIBOR 3 months were slightly
higher at 0.2%. These rates began to pick up at the end
of the year reaching 0.15% and 0.28% respectively, driven
by lower interbank liquidity;
long rates, including the benchmark 10-year French
Treasury bond rate, continued to fall during the first four
months of the year reaching a record low at 1.67% late
April before very gradually rising and stabilising at the
end of the year at around 2.3%;
lastly, the fall in inflation led to two successive
reductions in the Livret A passbook savings interest
rate, on 1 February from 2.25% to 1.75% and on 1 August
reducing further to 1.25%. This hit volumes of new
savings deposited with La Banque Postale hard.
These exceptionally low rates buoyed the property loan
market, which also featured a high level of loan repayments.
The consumer credit market suffered from weak domestic
consumption and remains on a downward trend.
With regard to the local authorities credit market, demand
for credit has reverted to the pre-crisis level in a highly
competitive market. Alongside bank financing, funds
received from bond issue also met with some success.
The banking business was also affected this year by major
changes in regulations including the European Parliament's
adoption of the CRD IV/CRR transposing Basel 3 into
European law (final adoption dated 27 June 2013, which
was published in the official journal of the European Union).
10.3.3.2 Commercial Activities
In this environment of low interest rates and a sluggish
economy in France, La Banque Postale turned in a strong
commercial performance by continuing to develop its
core business while continually enhancing its offering.
Total outstanding customer savings increased by 3.0% to
€297.1 billion (up €8.5 billion including €2.3 billion from
the BPE acquisition):
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(€ billion) 2013 2012Change
(€bn) (as a %)
Sight deposits 47.7 45,2 +2.5 +5.4%
Ordinary savings products 86.1 84.2 +1.9 +2.2%
Livret A passbook savings account 64.3 61.8 +2.6 +4.1%
Popular savings accounts 8.7 9.4 -0.7 -7.4%
Sustainable Development savings accounts (LDD) 7.2 6.4 +0.8 +11.8%
Other savings accounts 5.9 6.7 -0.7 -10.9%
Home savings accounts 27.0 26.5 +0.5 +2.0%
UCITS (a) 14.7 14.5 +0.2 +1.3%
Life insurance (a) 120.4 116.5 +3.9 +3.4%
Other (b) 1.2 1.6 -0.5 -28.3%
Customer savings (c) 297.1 288.6 +8.5 +3.0%(a) Products distributed by the La Banque Postale network and BPE.
(b) Term deposits and equity savings schemes.
(c) The 2013 acquisition of BPE had a €2.3 billion impact.
Outstanding sight deposits of €47.7 billion rose 5.4% (up
€2.5 billion), in line with La Banque Postale's strategy of
transforming inactive clients into active clients.
Outstanding ordinary savings products increased by
€1.9 billion or 2.2% to €86.1 billion, underpinned by a
€3.3 billion or 4.9% increase in Livret A passbook savings
accounts and Livret Sustainable Development accounts. The
successive interest rate reductions in 2013 nevertheless
dampened net inflows in these two products which turned
negative in the second half (Livret A outstandings totalled
€64.8 billion at 30 June 2013).
Outstanding home loan savings stood at €27 billion, a
marginal €0.5 billion increase (up 2.0%) boosted by Plans
Épargne Logement (home savings plans), which come with
an attractive interest rate.
Outstanding life insurance saving stood at €120.4 billion,
up €3.9 billion or 3.4%, including a 7.7% increase, or
2.4 percentage points, in the proportion of units of account
in total gross inflows compared to 2012.
Total outstanding UCITS savings stood at €14.7 billion
holding up thanks to lower outflows than in 2012 despite
extremely low short-term market interest rates and a
higher capital gains tax on investments held in ordinary
investment accounts.
Total outstanding loans amounting to €57.8 billion continue to display strong growth, up 17.3% or €8.5 billion (including
€2.5 billion from the BPE acquisition):
(€ billion) 2013 2012Change
(€bn) (as a %)
Property loans 49.8 45.0 +4.8 +10.7%
Consumer loans 3.4 2.6 +0.7 +28.2%
Other loans (a) 0.7 0.8 -0.1 -15.0%
Loans to legal entities (b) 3.9 0.8 +3.1 ns
Loans to customers (c) 57.8 49.3 +8.5 +17.3%(a) Overdrawn sight deposits and amounts owed on bank cards.
(b) Businesses, housing associations, voluntary organizations, and regional authorities.
(c) The 2013 acquisition of BPE had a €2.5bn impact.
ns = not significant.
In 2013, over €9 billion in property loans were granted, up
33% (excluding BPE) and a 1.3 percentage point gain in
market share to 7.7% in 2013. In addition to the buoyant
activities of the usual outlets, there was also growth in new
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distribution channels. "Prescription" accounts for nearly
11% of total new loans in 2013 and the introduction of the
Accession Sociale (social accession) loan scheme enabled
La Banque Postale to be the third largest accession sociale
loan provider. Outstanding property loans of €49.8 billion
increased by 10.7% (up €4.8 billion). Excluding BPE, the
increase is 5.5% (up €2.5 billion).
In a declining market, La Banque Postale Financement
turned in 24% growth in production of consumer loans
thereby continuing to finance La Banque Postale customers
with a consumer loan market share up 0.9 points at 5%.
Outstandings rose 28.2% (up €0.7 billion) to €3.4 billion.
In 2012 La Banque Postale launched a range of loan offers
targeting businesses and the local public sector. In 2013,
a factoring offer for legal entities and products for public
health and local public institutions customers were added
to this range. As at 31 December 2013, total outstanding
loans in this market segment amounted to €3.9 billion, up
€3.1 billion.
10.3.3.3 Operating performance
(€ million) 2013 2012Change
(€m) (as a %)
Asset management 134 120 +14 +11.9%
Insurance 123 107 +17 +15.7%
Retail banking 5,281 5,015 +267 +5.3%
Net interest margin 3,416 3,186 +231 +7.2%
Commissions 1,990 1,901 +90 +4.7%
Other income and expenses (125) (72) -54 +74.9%
Net Banking Income 5,539 5,241 +298 +5.7%
La Banque Postale's 2013 Net Banking Income (NBI)
amounted to €5,539 million. At constant consolidation,
adjusting for the home loan savings provision and for the
Cheque Scanning fine, NBI rose 2.7% fuelled by higher new
loans and more products sold to customers.
Asset Management NBI increased by 11.9% to €134 million
underpinned by buoyant equity markets (CAC 40 up 18%)
combined with a 3.5% increase in outstandings under
management to €149 billion—largely a result of strong
new business at LBP Gestion Privée, for which gross new
investments amounted to €535 million, up €180 million.
La Banque Postale still has the sixth largest market share
among asset management companies affiliated to a bank.
2013 Insurance NBI came in at €123 million, a sharp
15.7% increase (up €17 million) reflecting strong demand
for La Banque Postale products from customers. LBP
Assurances IARD (property and casualty insurance) rose
by €11.2 million backed by 863,000 policies while the NBI
of LBP Assurances Santé (Health insurance), launched late
2012, was €4.1 million with 56,400 policies.
The Retail Bank NBI adjusted for the home loan savings
provision (a €137 million reduction in 2012 and a
€23 million increase in 2013) and for the Cheque Scanning
fine (€33 million expense in 2012 and €16 million income
in 2013) increased by €156 million or 3.0%. This increase
was primarily due to:
a 1.3% increase in the net interest margin fuelled by
higher income in the loan business, which is expanding
its offering, and by lower remuneration paid on deposits;
a 4.0% increase in commissions, boosted by growth in
products sold to customers reflecting a 2.5 percentage
points increase over the year in the packages sold rate,
and boosted by the ongoing policy to move up market;
the May 2013 integration of BPE, undertaken so as to
develop high net work offering, delivered €41 million NBI
in 2013.
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(€ million) 2013 2012Change
(€m) (as a %)
Net Banking Income 5,539 5,241 +298 +5.7%
Management expenses (4,686) (4,481) -205 +4.6%
Gains and losses on other assets (a) 10 13 -3 -24.8%
Gross Operating Profit 863 773 +90 +11.6%
Cost of risk (154) (152) -3 +1.7%
Operating profit/(loss) 708 621 +87 +14.0%
La Banque Postale cost-to-income ratio 84.9% 85.8% -0.9 pt
(a) Including the negative goodwill on CNP.
Management expenses on Banking activities amounted
to €4,686 million, up 4.6% or -€205 million. This increase
includes the following items:
capital expenditure and assets provided to support the
growth of subsidiaries, as well as new credit activities for
legal entities (companies and local authorities);
the first-time consolidation of BPE in 2013 for which
expenses amounted to €35 million;
a tax penalty related to the ongoing inspection of
regulated savings.
At constant consolidation and excluding the notified fine,
management expenses increased by only 1.6% compared
to 2012.
Gross Operating Profit amounted to €863 million, an
increase of €90 million over 2012 with a cost-to-income
ratio of 84.9%, down 0.9 pt.
Cost of risk was €154 million, up €3 million compared to
2012. Adjusting for the 2012 €17 million impairment on
Greek sovereign debt and the BPE acquisition, this increase
amounted to €16 million, which was primarily caused by the
large increase in outstanding loans and remains fully in line
with market standards.
Operating profit amounted to €708 million, up €87 million.
With a view to supporting La Banque Postale's commercial
growth and to adapt to changes in regulations, on
12 December the La Poste Board of Directors resolved to
increase La Banque Postale's equity by €1,028 million. As
such, on 13 December €228 million were added to Core
Tier 1 equity via the contribution in kind of La Banque
Postale head office. In addition, an €800 million issue of
subordinated hybrid bonds, fully taken up by Le Groupe
La Poste, bolstered La Banque Postale's Core Tier 1 equity.
La Banque Postale's growth relies on a robust balance
sheet and a high solvency level: at 31 December 2013, the
Basel 2.5 Core Tier 1 ratio stood at 11.4% following the
€228 million capital increase.
Following the €800 million issue of Tier 1 hybrid bonds, the
La Banque Postale Tier 1 ratio is 13.2%.
La Banque Postale is underpinned by a strong Basel III
Common Equity Tier 1 ratio (1) of 10.2% as at 31 December
2013.
La Banque Postale's liquidity remains very strong with a
loans to deposits ratio of 67% and a LCR ratio of 152% as
at 31 December 2013, well above regulatory requirements.
(1) Applying the transitional rules and the provisions of the Danish compromise. The fully loaded CET1 ratio is estimated at 11.2%.
Registration document 2013 / LE GROUPE LA POSTE158
Review of the financial position and results Operating results by business segment10
10.3.4 Retail Brand
The "Retail Brand" segment covers all consumer sales and distribution of Le Groupe La Poste products and services (parent
company Retail Brand) as well as La Poste Telecom activities, which are marketed under the brand "La Poste Mobile".
(€ million) 2013 2012Change
(€m) (as a %)
Revenue 4,230 4,231 -1 -0.0%
Of which intercompany revenue 92 88 +4 +4.3%
Operating expenses (4,196) (4,215) +19 -0.4%
Operating profit/(loss) 34 16 +17 nsns = not significant.
10.3.4.1 Parent company Retail Brand
To market its products and services to the general public,
the Retail Brand provides La Poste with the most extensive
distribution network of 17,081 outlets in France as at
31 December 2013, including 7,360 partnerships (Local
Postal Agencies and Relais Poste outlets).
For several years, the Retail Brand has engaged in a
programme to modernise and rationalise the network in
order to boost its attraction, offer a top quality of service
while controlling trends in operating costs:
This is reflected in the ongoing renovation of post
offices undertaken over the last few years that includes
deployment of the ESC model (Customer Service Area) so
as to transform the post offices from a standard counter-
based service to a multi-channel model including
reception and customised advice and sales, tailored to
the diverse customer needs. In 2013, 324 additional post
offices were modernized (211 in 2012).
This concept is also based on providing consumers with a
large number of vending machines, both for the banking
business and for the mail/parcels business: 20,899 ATMs
(mail, parcels and banking) including 3,535 introduced
in 2013.
This major Group project resulted directly in cutting
waiting times in post offices, thereby enhancing the
quality of customer service. As a result, the average
time spent waiting for service at a counter has reduced
by three minutes in the past four years from 7 minutes
19 seconds in November 2009 to 4 minutes 25 seconds
in November 2013 (measured every six months by Ipsos).
In line with the Retail Brand network modernisation and
with a view to diversifying activities within post offices
so as to enhance their attraction, the Retail Brand is
currently testing new services such as digital tablets in
50 Local Postal Agencies and 3D printers in three Paris
region post offices. Based on feedback from this test, the
project will be rolled out in several French cities.
The attraction of the network contributes directly to
the Group's Business Lines' sales growth, in particular
La Banque Postale, as shown by 19.4% and 16.3%
increases in property loans and consumer loans sold
respectively compared to 2012.
The Retail Brand network underlies the synergies between
a digital and physical presence through increasing growth
in online sales of Group products, access to key information
at outlets (visiting bank consultants, opening times, prices,
etc.) and even the option to submit a complaint online.
Group Business Lines are charged for using this
commercial network based on actual services performed by
the Retail Brand on their behalf, and this represents most
of the Retail Brand revenue:
service agreements based on operating indicators (e.g.
revenue, number of items handled) with Mail, ColiPoste
and Chronopost;
a service agreement with La Banque Postale based on
transactions handled at the counter and charged based
on actual costs for the banking advisory line hosted by
the Retail Brand (e.g. financial advisors etc.);
transfer of costs related to the Universal Postal Service
and regional planning and development missions,
and transitional expenses (including end-of-career
mechanisms) to the 'Unallocated' segment.
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The 2013 recharges based on the service agreements were
similar to 2012, the lower volume of transactions handled
at the counters (down 5.8% in 2013 compared to 2012)
being offset by a higher proportion of transactions done
via ATMs (postal, parcels and banking), while Retail Brand
costs remained flat thanks in part to the CICE tax credit (for
competitiveness and employment).
2013 operating profit rose by €17 million compared to 2012.
10.3.4.2 La Poste Mobile
La Poste Telecom, the Group's 51%-owned MVNO joint
venture with SFR holding the remaining 49%, markets its
services under the "La Poste Mobile" brand.
Early in 2012, the La Poste Mobile was hit by a price war
among competitors selling low-level offers online. La Poste
Mobile then successfully responded with very competitive
mobile phone packages sold in post offices. 2013 marked a
record with the sale of 633,000 new lines (383,000 in 2012).
The total number of lines was 963,000 at 31 December 2013
up 319,000. The one million customers mark was reached
in January 2014.
The benefit of a sharp growth in volumes (year-end
number of lines up 50% compared with 2012) on revenue
is mitigated by the sale of low-cost packages (in particular
packages without phones supplied) leading to a lower
average revenue per unit. La Poste Mobile's 2013 revenue
came in at €148 million, up 7.0% over 2012.
In the first half year, La Poste Mobile also launched
"quadruple play" packages in partnership with SFR
(20,000 broadband packages have been sold by the Retail
Brand network).
10.3.5 Real estate
The real estate segment consists of the subsidiary Poste Immo and is overseen by the real estate Department.
(€ million) 2013 2012Change
(€m) (as a %)
Revenue 908 851 +57 +6.7%
Of which intercompany revenue 62 41 +20 +49.5%
Operating expenses (847) (797) -50 +6.2%
Gains (Losses) on disposal 74 55 +19 +34.4%
Operating profit/(loss) 135 109 +26 +24.1%
At the end of December 2013, real estate revenue amounted
to €908 million, an increase of €57 million or 6.7% in
relation to 2012:
The Group share of growth in joint development
revenue, which are consolidated under the proportional
consolidation method, amounted to €23 million.
Revenue excluding property development activities
consisting of rental income primarily from third parties
reduced by €3 million.
2013 intercompany revenue amounting to €846 million
increased by €37 million or 5%, boosted by rent indexing
and additional rental income charged to the Retail Brand
notably work to improve customer service as part of the
post offices modernisation project. Surface area used fell
by 132,000 square metres.
2013 operating profit came in at €135 million, an increase
of €26 million compared to 2012. This increase is mainly
due to gains on asset sales, which increased by €19 million
due to one material €65 million gain in second half 2013
on the sale of the head office to La Banque Postale, which
was eliminated on consolidation. Excluding this transaction,
2013 gains on asset sales fell compared to 2012 on account
of material asset sales in 2012 (e.g. Creteil parcels hub, mail
Industrial Platforms of Rennes and Issy-les-Moulineaux).
2013 operating profit excluding gains on disposal increased
by €7 million.
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10.3.6 Other segments
10.3.6.1 Shared Services
The "Shared Services" segment consists of Support Departments (primarily IT, car fleet administration and procurement) which
recharge their services to other operating segments, the Group head office and the Digital department (set up on 1 July 2013).
(€ million) 2013 2012 (a)
Change(€m) (as a %)
Operating revenue 825 840 -15 -1.8%
Operating expenses (1,037) (1,029) -8 +0.8%
Operating profit/(loss) (211) (188) -23 -12.4%(a) Reported in 2012: change in accounting policy (tax adjustments, SLP products and Vehiposte peripheral products)
2013 operating profit came in at €825 million and includes:
€782 million for intercompany revenue resulting from
invoices by the Support Departments for services
delivered to other operating segments and recharges for
head office service centres. Unit prices are established
prior to commencing work in a service agreement and
amounts charged are based on actual volumes;
€43 million of Group head office costs in respect of
management fees paid by subsidiaries.
Intercompany revenue fell marginally, by €15 million
compared with 2012, in line with a reduction in demand
from customers especially for IT services, reflecting stricter
cost control among the various segments.
Operating expenses increased by €8 million due to:
a €15 million reduction in intercompany revenue, which
are reflected in operating expenses;
stable head office costs (excluding the Institute of
Management);
the cost to set up the Institute of Management in early
October amounting -€3 million;
transfer of the Mail's digital business to the Digital
Department costing €5 million;
accounting adjustments for prior years amounting to a
€15 million expense.
10.3.6.2 Unallocated expenses
The "Unallocated segment" includes the costs of the
regional planning deriving from the Universal Service
Obligations, the costs of the regional planning mission
and the corresponding discount on local tax charges, and
lastly, the transitional expenses relating to end-of-career
mechanisms throughout the Group, and as such not
allocated to the Business Lines.
(€ million) 2013 2012
Change
(€m) (as a %)
Net cost of regional postal presence (616) (621) +5 -0.8%
Other operating expenses (103) (211) +108 -51.2%
Operating profit/(loss) (719) (832) +113 +13.6%
The €108 million decrease in operating costs resulted from a sharp decline in transitory expenses due to setting up a cheaper
scheme in 2014 than in 2013.
161Registration document 2013 / LE GROUPE LA POSTE
Review of the financial position and results Other income statement aggregates 10
10.3.6.3 Consolidation adjustments
€65 million of the €67 million consolidation adjustment represents the elimination of the intercompany gain earned by Poste
Immo on sale of the La Banque Postale head office (see 3.5 above).
10.4 Other income statement aggregates
10.4.1 Financial profit/(loss)
(€ million) 2013 2012Change
(€m) (as a %)
Net interest expense (174) (160) -14 +8.9%
Change in fair value excl. spread and change in debt
credit spread (24) (61) +37 -60.8%
Cost of net financial debt (198) (221) +23 -10.4%
Other financial items (25) (63) +38 -60.8%
Financial profit/(loss) (223) (284) +61 +21.6%
2013 financial profit/(loss) of €223 million improved by
€61 million compared to 2012.
While the net interest expense on debt rose by €14 million,
the average bond interest rate, after active management,
reduced from 3.28% in 2012 to 3.0% in 2013, albeit offset by
an increase in the value of average debt from €5.6 billion to
€6.2 billion. Financial income fell due to lower EONIA and
EURIBOR interest rates (down on average by a factor of 2.5).
The 2013 average cost of debt before active management
amounted to 4.31%.
The 2013 impact from the fair value adjustment on debt
is amounting to €24 million, mainly due to a further
decline in La Poste's credit spread of €51 million (the
EURIBOR 3 months spread decreased from 90 basis points
at 31 December 2012 to 60 basis points at 31 December
2013), which increased the value of the existing debt thereby
leading to an expense in the accounts. 2012 had also been
featured by a negative fair value adjustment on the swaps
portfolio following a sharp decline in long-term rates.
2013 other financial profit/(loss) items (a €25 million
expense) principally arises from an accretion expense on
staff provisions, which reduced by €31 million compared
to 31 December 2012, following a decline in discount rates.
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10.4.2 Net profit, Group share
(€ million) 2013 2012Change
(€m) (as a %)
Operating revenue 22,084 21,657 +427 +2.0%
Operating expenses (21,314) (20,841) -473 +2.3%
Operating profit/(loss) 770 816 -46 -5.6%
Financial profit/(loss) (223) (284) +61 +21.6%
Profit before tax 548 532 +15 +2.9%
Income tax (127) (231) +104 +44.9%
Share in profits of equity associates 215 180 +36 +19.8%
Consolidated net profit 635 481 +155 +32.2%
Net profit/(loss), Group share 627 479 +148 +30.9%
Non-controlling interests (8) (2) -7 ns
ns = not significant.
Net profit, Group share increased from €479 million at
the end of 2012 to €627 million at the end of 2013, up
€148 million:
Profit before tax rose marginally by €15 million to
€548 million given that the reduction in operating profits
was offset by lower financial expenses (see above);
The Group tax charge amounted to €127 million, a
€104 million decrease compared to 2012, due specifically
to the lower profit before tax excluding the CICE tax
credit income of €297 million, which was not taxable;
2013 share of profits of equity associates amounted to
€215 million, up €36 million over 2012, and mainely
comprises contribution of CNP Assurances, in which the
Group holds a 20.15% equity stake.
10.5 Debt and financial strength
The tables below are set out so as to present both the
banking activities and the industrial and commercial
activities within the same group while providing a more
economic view of their respective contribution to Group
cash flow.
As Group parent company, La Poste provides funding
for industrial and commercial activities and equity for
La Banque Postale. La Banque Postale, although fully
consolidated, provided it meets minimum regulatory equity
requirements, distributes dividends to its parent company,
which are treated as Group cash flows.
Consequently, Group net debt excludes La Banque Postale
for which the concept of net debt is not relevant. Group net
debt therefore changes based on the following:
free cash flows generated by industrial and commercial
activities (i.e. EBITDA, changes in working capital, capital
expenditure and any acquisitions);
dividends paid by La Banque Postale or equity associates
to La Poste;
the tax charge applying to the tax consolidation group
comprising La Poste and its subsidiaries;
La Poste's cost of capital employed based on interest
paid on net debt and dividends paid to shareholders.
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Review of the financial position and results Debt and financial strength 10
10.5.1 Change in net debt
10.5.1.1 Cash flows from operating activities
Cash flows from operating activities reduced by €140 million compared to 2012:
(€ million) 2013 2012Change
(€m) (as a %)
EBITDA (excluding La Banque Postale) 824 915 -91 -9.9%
Dividends received from LBP and equity associates 267 193 +74 +38.1%
Change in working capital 144 73 +71 +97.8%
CICE for the year (a) (253) 0 -253 -
Taxes paid 97 40 +57 ns
Other cash flows from operating activities (23) (25) +2 -7.1%
Cash flows from operating activities 1,056 1,195 -140 -11.7%(a) CICE on remuneration paid during the year. This does not include CICE in respect of provisions for employee benefits. This CICE is included under
EBITDA but had no cash impact in 2013.
ns = not significant.
At the end of 2013, EBITDA excluding La Banque Postale
fell by €91 million, largely due to lower EBITDA of the
Mail parent company (down €186 million), which suffered
from a more rapid decline in mail volumes during 2013.
Growth in EBITDA of the subsidiaries, particularly
Sofipost (up €26 million) and GeoPost (up €29 million),
partly offset the decline in the Mail parent company.
2013, dividends received from La Banque Postale and
the equity associates increased by €74 million given that
La Banque Postale posted a higher 2012 net profit than
in 2011 (2011 was hit hard by the Greek sovereign debt
crisis).
2013, a positive change in working capital, principally
due to a €108 million reduction in cash held in post
offices. The month-end value of cash held in post offices
fluctuates considerably mainly due to required cash
reserves to replenish ATMs, which strongly depends
on the timing of the last day of the month (e.g. larger
reserves required just before a weekend).
The 2013 impact of CICE (tax credit for competitiveness
and employment), which is recognised as a deduction
from personnel expenses under EBITDA excluding
La Banque Postale, amounted to €253 million. 2013
CICE will not impact cash flow until 2014 at the earliest,
by setting it off against tax payable in respect of 2013,
and 2017 at the latest in the form of a payment from the
tax authorities, in accordance with the relevant statutory
conditions.
Accounting for tax resulted in a €97 million improvement
in the Group's net debt (1) during 2013, in part due to
setting off the losses from the non-banking activities
against tax paid by La Banque Postale to the parent
company in accordance with the tax consolidation group
procedures, and in part due to the French government's
repayment in 2013 of the receivable balance of the
Group's payments on account in 2012 (the Group's
available tax credits cannot be offset against future
payments on account).
(1) Group net debt excludes La Banque Postale for which this is not relevant.
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10.5.1.2 Cash flow from investing activities excluding La Banque Postale
At the end of December 2013, net cash flow from investing activities excluding La Banque Postale amounted to €1,561 million,
up €833 million over 2012 including €800 million from the La Poste purchasing hybrid bonds issued by La Banque Postale
so as to strengthen its equity.
(€ million) 2013 2012Change
(€m) (as a %)
Purchase of intangible assets and P, P&E (837) (864) +26 -3.1%
Purchase of financial assets (a) (826) (35) -791 ns
Asset disposals 151 252 -101 -39.9%
Acquisitions of subsidiaries less cash acquired (50) (83) +33 -40.0%
Disposals of subsidiaries less cash included in disposal 0 1 -1 ns
Cash flow from investing activities excluding LBP (1,561) (728) -833 ns(a) Of which €800 million to increase La Banque Postale's equity in 2013.
ns = not significant.
Purchase of intangible assets and P, P&E
2013 purchases of intangible assets and property, plant and
equipment were similar to 2012 (up €26 million or 3.1%).
Capital expenditure was boosted by investment in the
European and international network of the Express business
(particularly in UK in 2013), while also including ongoing
refurbishment of the post office network, maintenance of
the real estate portfolio and industrial tool, vehicles and
information systems. Tight control over capital expenditure,
particularly regarding real estate and Mail segments has
resulted in overall stable investments.
Purchases of intangible assets and property, plant and
equipment are broken down by Business Line as shown
below. It should be noted that the electric vehicle equipment
held by Véhiposte explains most of the sharp increase
in capital expenditure for Support Services in line with
commitments made by the Group.
(€ million) 2013 2012Change
(€m) (as a %)
Mail (173) (197) +24 -12.0%
Parcels-Express (197) (169) -28 +16.9%
Retail Brand (34) (37) +3 -7.8%
Real estate (249) (288) +39 -13.7%
Support (184) (173) -11 +6.3%
Purchase of intangible assets and P, P&E (837) (864) +26 -3.1%
Change in non-current asset accounts payable 6 (12) +17 ns
Capital expenditure excluding LBP (832) (875) +44 -5.0%ns = not significant.
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Review of the financial position and results Debt and financial strength 10
Purchases of financial assets
Purchases of financial assets (guarantee deposits and equity
investments) are stated excluding "Cash investments with a
maturity of over three months" (amounting to €655 million
and €815 million at the end of 2013 and at the end of 2012
respectively), which represent security for the bond debt in
line with the Group’s ongoing cash management procedures
and are reported as a deduction to net debt (1).
The vast majority of 2013 purchases of financial assets
consists of the €800 million purchase of the La Banque
Postale hybrid bonds carried out in conjunction with
strengthening this subsidiary's equity.
Acquisitions and external growth
2013 acquisitions were made by GeoPost: 40% equity
investment in India-based DTDC, acquisition of a controlling
interest in Tigers and acquisitions of new SEUR franchises.
Pursuant to the general principles mentioned above,
La Banque Postale's April 2013 purchase of Banque Privée
Européenne (BPE) for €115 million (see Section 10.1.4.3)
is not included in this total, but is taken into account via
La Banque Postale's distributable earnings.
Asset disposals
2013 asset disposals, which amounted to €151 million, are
lower than 2012, when the Group sold two major assets in
the first half of 2012 comprising the Issy-les-Moulineaux
site and a facility in Créteil.
10.5.1.3 Change in net debt
In 2013, the Group consumed €852 million of cash for
operations: in addition to a net free cash outflow of
€505 million, including €800 million to purchase La Banque
Postale hybrid bonds as stated above, the Group paid out
€175 million in shareholder dividends in respect of 2012
earnings and paid €172 million in net interest costs.
The April 2013 payment of the third and last €600 million
instalment of the capital increase, limited the increase in
Group net debt (1) to €318 million over the year, reaching
€3,778 million at the balance sheet date.
(€ million) 2013 2012Change
(€m) (as a %)
Cash flows from operating activities 1,056 1,195 -140 -11.7%
Cash flow from investing activities (1,561) (728) -833 ns
Free cash flows (505) 467 -973 ns
Dividends paid (175) (148) -27 +18.4%
Net interest paid (172) (164) -8 +4.7%
Net free cash flows (852) 156 -1,007 ns
Capital increase 600 1,053 -453 -43.0%
Impact of changes in consolidation on gross debt (15) (32) +17 -52.4%
Purchase of non-controlling interests (9) (25) +16 -64.4%
Unrealised gains and losses relating to changes in fair
value (28) (58) +30 -51.9%
Increase in finance lease liabilities (17) (7) -10 ns
Change in accrued interest not yet due on financial
instruments 8 0 +7 ns
Other items (a) (5) (2) -3 ns
Change in net debt (b) (318) 1,084 -1,402 ns(a) "Other items" includes the impact of changes in exchange rates on net debt.
(b) " - ": increase / "+": decrease.
ns = not significant.
(1) Group net debt excludes La Banque Postale for which net debt is not relevant.
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10.5.2 Change in cash and cash equivalents
Le Groupe La Poste's cash and cash equivalents increased
from €2,167 million at the beginning of the year to
€2,163 million at 31 December 2013, a €4 million decrease,
primarily as a result of:
• a net free cash outflow of €852 million including
€800 million in La Banque Postale hybrid bonds;
• the Apri l 2013 capital increase amounting to
€600 million;
• the €357 million net cash outflow from financing
activities primarily relates to bond transactions, with
a debt redemption of €726 million in November 2013
and €250 million of new borrowings contracted early
November 2013. This line also includes changes in debt
corresponding to secured cash on financial instruments
(amounting to some €100 million in respect of coupons
received in 2013);
• the change in financial assets used in cash management
represented by a cash inflow of €157 million that
primarily arose from negotiable debt securities,
dedicated funds and over three months fixed term lines
falling due (totalling €500 million) offset in part by two
new dedicated funds as security for the Feb 2016 bond
tranche (totalling €350 million);
• the intercompany cash inflow of €557 million, which
consists of changes in La Poste's account balance
with La Banque Postale and principally arose from
a €500 million term account used as security for the
€726 million of borrowings repaid in November 2013.
(€ million) 2013 2012Change
(€m) (as a %)
Net free cash flows (852) 156 -1,007 ns
Capital increase 600 1,053 -453 -43.0%
Change in cash flows from financing activities (357) 54 -411 ns
Change in financial assets used in cash management 157 (148) +305 ns
Other cash flows from financing activities (97) 63 -160 ns
Intercompany cash flows 557 (159) +716 ns
Other items (a) (14) 2 -16 ns
Change in cash and cash equivalents (4) 1,022 -1,026 ns
Opening cash and cash equivalents 2,167 1,146 +1,022 +89.2%
Closing cash and cash equivalents 2,163 2,167 -4 -0.2%(a) Other items: Exchange differences and change in accounting policy (€5 million outflow) and purchase of non-controlling interests (€9 million outflow).
ns = not significant.
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10.5.3 Breakdown of financial debt
10.5.3.1 Gross debt
A breakdown of the Group’s gross debt as at 31 December 2013 and 2012 is provided below:
(€ million)
2013 2012
Short-term
Medium- and
long-term TotalShort-
term
Medium- and
long-term Total
Bonds 207 5,925 6,133 726 5,968 6,694
La Poste savings bonds 63 0 63 66 0 66
Commercial paper 150 0 150 0 0 0
Deposits and guarantees received 368 26 394 486 25 512
Accrued interest 132 0 132 139 0 139
Other 140 91 232 151 91 242
Gross debt 1,060 6,043 7,103 1,567 6,085 7,652
La Poste's gross bond debt is made up of around 10
originally fixed-rate loans, some of which have been
converted into variable rate loans and others converted into
new fixed-rate loans based on forecast interest rate rises.
In November 2013, a €726 million bond was repaid and a
new 11-year €250 million bond maturing in November 2024
was issued by adding to the existing bond line, at a fixed
coupon of 2.75% per year.
Note that the deposits and guarantees, which largely
consist of secured cash with banking counterparties for
swaps "in profit", reduced by €118 million due to coupons
received in 2013.
The 2013 cost of debt came in at 3% down from 4.31%
before active management.
10.5.3.2 Net debt
(€ million) 2013 2012Change
(€m) (as a %)
Closing gross debt 7,103 7,652 -549 -7.2%
Cash and cash equivalents (2,163) (2,167) +4 -0.2%
Other assets (1,162) (2,025) +864 -42.6%
Closing net debt 3,778 3,460 +318 +9.2%
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Group net debt at 31 December 2013 amounted to
€3,778 million, up €318 million compared to 31 December
2012.
Other assets consist of:
investments maturing in over three months, including
a portion of the cash investments backing future bond
repayments;
derivative investments linked to debt;
guarantee deposits paid on derivatives recognised as
assets;
the net financial balance with La Banque Postale.
The €318 million increase in net debt, which includes the
La Poste purchase of €800 million of hybrid bonds so as to
increase La Banque Postale's equity and the payment of the
last €600 million instalment of the Group's capital increase,
resulted in holding gearing (net debt (1) divided by equity) at
0.45 as at 31 December 2013.
10.5.4 Equity and financial structure
(€ million) 2013 2012Change
(€m) (as a %)
Opening consolidated equity, Group share 7,470 6,783 +687 +10.1%
Capital increase 600 0 +600 -
Net profit/(loss), Group share 627 479 +148 +30.9%
Dividend payments (171) (144) -27 +18.4%
Unrealised gains and losses on financial instruments 33 439 -406 -92.6%
Translation adjustments (75) (16) -59 ns
Change in the fair value of call options on non-
controlling interests 0 0 0 -
Actuarial gains (losses) (81) 0 -81 -
Other items 57 (71) +128 ns
Equity, Group share 8,460 7,470 +990 +13.2%
Non-controlling interests 57 65 -9 -13.1%
Closing consolidated equity 8,516 7,535 +981 +13.0%ns = not significant.
Equity, Group share, amounted to €8,460 million at 31 December 2013, up €990 million, and includes the €600 million April
2013 capital increase.
(1) Group net debt excludes La Banque Postale for which net debt is not relevant.
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10.5.5 Credit rating
On 11 July 2013, while Standard and Poor's confirmed La Poste's credit rating, it marked down the outlook from "positive"
to "stable".
Following the downgrade in France's long term credit rating from AAA to AA+, Fitch Ratings revised La Poste's long-term
rating to AA- with a stable outlook.
Company AgencyLong-term
ratingShort-term
rating Outlook Last revised
La Poste Fitch Ratings AA- F1+ Stable 17 July 2013
Standard and Poor’s A A-1 Stable 11 July 2013
La Banque Postale's credit rating was also revised in 2013.
Company AgencyLong-term
ratingShort-term
rating Outlook Last revised
La Banque Postale Fitch Ratings A+ F1+ Stable 24 July 2013
Standard and Poor’s A A-1 Stable 12 November 2013
10.6 Analysis of the parent company financial statements
La Poste’s company financial statements are prepared in accordance with French GAAP and with the provisions of the French
General Chart of Accounts.
10.6.1 Operating profit/(loss)
(€ million) 2013 2012Change
(€m) (as a %)
Operating revenue 14,625 14,980 -355 -2.4%
Operating expenses (15,174) (15,349) +176 -1.1%
Operating profit/(loss) (549) (369) -180 +48.7%
Financial profit/(loss) 340 286 +54 +18.9%
Non-recurring items (21) (26) +6 -21.0%
Tax 314 175 +139 +79.3%
Net profit/ (loss) 84 66 +19 +28.7%
Registration document 2013 / LE GROUPE LA POSTE170
Review of the financial position and results Analysis of the parent company financial statements10
La Poste’s 2013 operating income, which primarily consists
of revenues from the Mail and Parcels business, the Retail
Brand's invoices to La Banque Postale, and recharges from
the shared resources unit to La Banque Postale in respect
of personnel expenses for the financial centres and the
banking advisory line, amounted to €14.6 billion, down 2.4%
compared with 2012 in line with the decline in mail volumes.
2013 operating expenses amounted to €15.2 billion, down
1.1% or €176 million. Personnel expenses reduced by
€278 million, due mainly to the €269 million CICE tax credit.
Purchases and other external expenses rose by €45 million.
Depreciation, amortisation, impairment and provision
charges increased by €66 million.
La Poste’s 2013 operating loss amounted to €549 million,
i.e. a deterioration of €180 million, which was primarily
related to the fall in mail volumes.
10.6.2 Financial profit/(loss)
(€ million) 2013 2012Change
(€m) (as a %)
Net expense on loans and borrowings (62) (66) +4 -6.2%
Income from equity investments 348 286 +61 +21.4%
Other financial income and expenses 54 66 -12 -17.7%
Net financial profit/(loss) 340 286 +54 +18.8%
The net expense on loans and borrowings amounted
to €62 million, primarily comprising interest costs on
borrowings, principally bonds issued by La Poste.
Dividends received from subsidiaries amounted to
€348 million (including €258 million from La Banque
Postale and €77 million from GeoPost), up €61 million
largely due to La Banque Postale's increased net profit in
2012 (while 2011 net profit was hit by impairment charges
on Greek Government bonds).
Other financial income and expenses primarily comprise
reversals of provisions on financial instruments.
2013 financial profit amounted to €340 million, a €54 million
increase compared to 2012 financial profit of €286 million.
10.6.3 Net profit/ (loss)
The loss before tax increased by €121 million to
€230 million.
Tax income increased by €139 million to €314 million.
Tax income results from the positive impact of the tax
consolidation group, which in 2013 saw an increase in
tax paid by La Poste S.A. subsidiaries (that are offset by a
higher amount of tax losses), notably La Banque Postale.
La Poste’s net profit amounted to €84 million, up
€19 million or 28.7% compared with 2012.
171Registration document 2013 / LE GROUPE LA POSTE
Review of the financial position and results Analysis of the parent company financial statements 10
10.6.4 Balance sheet
Assets(€ million) 2013 2012
Equity and liabilities(€ million) 2013 2012
Non-current assets 11,796 11,062 Equity 5,458 4,946
Current assets 2,353 2,009 Provisions 1,814 1,779
Financial debt 6,614 7,063
Cash and cash equivalents 3,558 4,364 Current liabilities 3,821 3,647
Total 17,707 17,435 Total 17,707 17,435
10.6.4.1 Assets
Non-current assets increased by €734 million including
€858 million on non-current financial assets following the
purchase of La Banque Postale hybrid bonds in conjunction
with its capital increase.
The increase in current assets largely relates to a
French government receivable for CICE (tax credit for
competitiveness and employment).
Cash and cash equivalents at 31 December 2013 amounted
to €3,558 million, down €805 million due to investing in
La Banque Postale's increase in equity.
10.6.4.2 Equity and liabilities
Equity amounted to €5,458 million at 31 December 2013, an
increase of €512 million compared to 2012, boosted by the
€600 million capital increase in April 2013.
Contingency and loss provisions amounted to €1,814 million
and financial debt stood at €6,614 million. Current liabilities
amounted to €3,821 million.
(€ million) 2013 2012Change
(€m) (as a %)
Trade payables maturing in less than 60 days 1,198 1,219 -21 -1.7%
Trade payables maturing in over 60 days 3 4 -1 -19.1%
Trade payables 1,201 1,223 -22 -1.8%
Trade payables amounted to €1,201 million as at 31 December 2013, of which €1,132 million owing for operating expenses
and €68 million owing for capital expenditure.
Registration document 2013 / LE GROUPE LA POSTE172
Review of the financial position and results Other financial information10
10.7 Other financial information
2013 2012 2011 2010 2009 2008
Operating revenue 14,625 14,980 15,228 15,236 15,314 15,967
Unallocated expenses (15,174) (15,349) (15,433) (15,707) (15,491) 15,761
Operating profit/(loss) (549) (369) (205) (471) (176) 207
Financial profit/(loss) 340 286 289 277 101 131
Non-recurring items (21) (26) (1) 0 (16) (43)
Tax 314 175 96 76 121 6
Net profit/(loss) 84 66 179 (117) 30 300
Share capital (€) 3,800,000,000 3,400,000,000 3,400,000,000 1,000,000,000 N/A N/A
Number of shares 950,000,000 850,000,000 850,000,000 500,000,000 N/A N/A
Revenue excl. tax 12,089 12,373 12,696 12,713 13,064 13,654
Profit/loss before tax,
depreciation and reversals 219 273 638 593 447 704
Tax 314 175 96 76 121 6
Profit/loss before tax,
depreciation and reversals 84 66 179 (117) 30 300
Profit distributed (171) (144) (136) (105) (106) (141)
Earnings per share after tax 0.09 0.08 0.21 (0.23) N/A N/A
Net earnings per share 0.09 0.08 0.21 (0.23) N/A N/A
Dividend per share 0.18 0.17 0.16 0.21 N/A N/A
Number of employees (full-time employee equivalents per annum) 218,941 221,656 226,502 236,593 248,287 257,120
Wages and salaries 6,792 6,821 6,868 7,024 7,114 7,204
Non-wage labour costs 1,546 1,528 1,374 1,322 1,305 1,323
173Registration document 2013 / LE GROUPE LA POSTE
Review of the financial position and results Post balance sheet events 10
10.8 Miscellaneous
TABLE SUMMARISING THE POWERS DELEGATED AND THEIR USE DURING FISCAL YEAR 2013
FOR THE INCREASE IN CAPITAL AT LA POSTE
Type of authorization granted to the Board of Directors
Date of Extraordinary
General Meeting
Expiry date of
delegation of authority
Amount authorised
Issue(s) made during 2013
Issue(s) made since the end
of the year
Authorization to increase
the share capital through
the exercise of warrants
(with waiver of preferential
subscription rights
for warrant holders) 6 April 2011 30 April 2013 €600,000,000 €600,000,000 None
10.9 Post balance sheet events
Not applicable.
Registration document 2013 / LE GROUPE LA POSTE174
175Registration document 2013 / LE GROUPE LA POSTE
11Cash, cash equivalents and equity
Registration document 2013 / LE GROUPE LA POSTE176
Cash, cash equivalents and equity 11
Information on share capital and cash flows is described in Chapter 10, Section 10.5.
177Registration document 2013 / LE GROUPE LA POSTE
12Outlook
Registration document 2013 / LE GROUPE LA POSTE178
Outlook 12
2014 began in an economic environment characterized by
recovery, which is modest in France and more pronounced
in Europe, moderate inflation, economic policies aimed at
reducing public expenditure, and long-term interest rates
that are still at low levels.
In this context, the Group has set itself the target of expanding
its revenue by 1% to 2%, driven by growth in Parcels, Express,
and La Banque Postale. Operating profit is expected to drop
sharply because the effect of the contraction in mail volumes
will not be completely offset.
To restore the Group's economic balance and to place it in
a sustainable development perspective that will guarantee
the accomplishment of its public service missions, a new
strategic plan was proposed to the Board of Directors at
its meeting of 28 January 2014. This plan prioritizes the
development of the Group and each Business Line. It
is based on innovation, digital transformation and the
conquest of new areas that are booming. Moreover, an
overall cost management effort to adapt costs to changes
in business activities and customer needs will enable the
Group to improve its performance, to return it to sound
health and to regain its development capacities.
That is what the plan, "La Poste 2020: Conquering the
future" is all about.
By business
As is the case in other European countries, the fall in paid
traffic is expected to continue and could reach -7.5% per
year by 2020. To deal with these challenges, Mail's goal is to
consolidate its position as the premium medium in the global
and multi-channel customer relationship, and to become the
leading local service network by drawing on its network of
connected postmen (Facteo). In this context, ColiPoste will
merge with the Mail business and will continue to develop
its parcel delivery service and the continuous improvement
in the quality of service to customers.
Mail is also planning to introduce a pricing policy enabling
it to maintain a high quality of the Universal Postal Service.
Express
GeoPost's goal is to build the first continental-scale hybrid
(B-to-B and B-to-C) network in Europe and to become the
European market leader for delivering parcels to private
individuals, via internal growth and acquisitions. The
offering will be complemented by new services and by
simple and innovative solutions. The connection with an
international network will also be strengthened, thanks
to the development of the freight forwarding business, to
external growth, or to duplicating the European model on
other continents.
La Banque Postale, bank and citizen
The Bank will step up its growth by increasing the services
subscribed by all its customers and will reinforce its
new business lines: multi-channel banking for private
customers and a bank for legal entities, giving priority to the
professional segment and by becoming the reference bank
for local authorities. It will intensify its efforts to improve
its operational efficiency, and will develop digital banking,
all the while ensuring that it proposes relevant solutions to
vulnerable customers. It will also ensure the continuity of
the financing of its missions of general interest. All this will
be done in a context of equity optimisation and risk control.
Retail Brand
The Retail Brand is positioning itself as the standard-setting
service and public service network and the convergence
point between physical and digital media. It will support,
in particular, the commercial development of La Banque
Postale, La Poste Mobile, and of the professional offerings
of all of the Group's Business Lines.
The Retail Brand also aims to improve its economic
efficiency, by adjusting the network and the office formats
to its customers' new life styles and consumption habits,
while increasing the accessibility of the network.
The Retail Brand will ensure the best possible linkage
between its network (rural as well as urban) and the
Group's other physical and digital networks, to bring a
coherent solution to the client-consumer.
La Poste Mobile
La Poste Mobile will continue its sales momentum on its
mobile and ADSL offering, as illustrated with the recent
launch of 4G. Offerings shared with the other Business
Lines will be developed, like contactless mobile payment.
Digital business activities
The digital businesses will accelerate the Group’s digital
transition, will deliver innovation in keeping with the digital
ecosystem, and will guarantee a continuous customer
experience for all La Poste’s services while developing new
businesses, including as a trusted third-party in digital
exchanges.
This means that the Group is involved in and committed to
changing its business model, and to meet the challenge
of the contraction in mail volumes and post office traffic,
with the objective of ensuring the long-term and sustainable
growth of each of its Business Lines.
179Registration document 2013 / LE GROUPE LA POSTE
13Profit forecasts or estimates
Registration document 2013 / LE GROUPE LA POSTE180
Profit forecasts or estimates 13
None.
181Registration document 2013 / LE GROUPE LA POSTE
14
14.1 Board of Directors 182
14.2 Executive Management 189
14.3 Absence of family ties, convictions and conflicts of interest 193
Administrative, management
and supervisory bodies and Executive
Management
Registration document 2013 / LE GROUPE LA POSTE182
Administrative, management and supervisory bodies and Executive ManagementBoard of Directors14
14.1 Board of Directors
14.1.1 Composition of the Board of Directors
Le Groupe La Poste’s Board of Directors comprises
21 members, in accordance with Act 90-568 of 2 July 1990
as amended, which relates to the organization of Le Groupe
La Poste and France Télécom’s public services, with Decree
No.2010-191 dated 26 February 2010 as amended, which
sets out Le Groupe La Poste’s initial articles of association
and includes various provisions relating to Le Groupe
La Poste, and with Article 13 of the Company’s articles of
association made up of 21 members.
The Board is composed of:
12 Board members appointed by the General Meeting:
on the recommendation of the French government and
the Caisse des Dépôts et Consignations, Philippe Wahl (1);
on the recommendation of the French government,
Éric Delzant (2), Laurence Franceschini, Jean-Michel
Hubert, Philippe Lemoine, Françoise Malrieu, Sophie
Mantel (3), Christian Martin, Antoine Saintoyant (4);
on the recommendation of the Caisse des Dépôts et
Consignations, Caisse des Dépôts et Consignations
represented by Jean-Pierre Jouyet, Odile Renaud-
Basso (5) and Franck Silvent (6);
two Directors appointed by decree: Mr Jacques
Pélissard, representing regional authorities, and Ms
Élyane Zarine, representing users;
seven staff-elected directors: Mr Régis Blanchot,
Ms Florence Derouard, Mr Bernard Dupin, Ms Sylvie
Feola, Mr Michel Lersy, Mr Marie-Pierre Liboutet and
Mr Michel Pesnel.
The term of office for members of the Board of Directors
is five years and is aligned to the end of the term of office
of the employee-elected members. Consequently, the
terms of office of the above-mentioned Board members
will expire on 20 December 2015. Should a member of the
Board of Directors leave his or her position for any reason,
a replacement will sit only for the duration of the remaining
term of office, until the entire Board is renewed.
The government representative and the head of the
French government economic and financial control unit
at Le Groupe La Poste also attend Board of Directors'
meetings in a non-voting capacity.
The Board of Director’s remit, procedures and work in 2013
are described in Chapter 16.
14.1.2 Profiles of the members of the Board of Directors
Directors’ biographies and terms of office
As required by Article L. 225-102-1 of the French
Commercial Code, a list of positions held by directors in
any company appears below. This information is correct to
the best of the Company’s knowledge.
Régis Blanchot has been a member of the Board of
Directors of La Poste since 1 January 2009. He was born
in 1967, and began his career at La Poste as a Controller
at the Paris financial centre in May 1987. He has been the
team leader at this centre since 1995. He was a full-time
employee of SUD-PTT with the status of Federal Secretary
(1) Philippe Wahl was appointed via co-optation by the Board of Directors on 1 August 2013, replacing Guillaume Gaubert. The General Meeting on 15 October
2013 ratified his appointment.
(2) Éric Delzant was appointed via co-optation by the Board of Directors on 26 September 2013, replacing Emmanuel Berthier. The General Meeting on
15 October 2013 ratified his appointment.
(3) Sophie Mantel was appointed via co-optation by the Board of Directors on 26 September 2013, replacing Jean-Paul Bailly. The General Meeting on
15 October 2013 ratified her appointment.
(4) Antoine Saintoyant was appointed via co-optation by the Board of Directors on 22 April 2013, replacing Olivier Bourges. The General Meeting on 18 June
2013 ratified his appointment.
(5) Odile Renaud-Basso was appointed via co-optation by the Board of Directors on 12 December 2013, replacing Loraine Donnedieu de Vabres-Tranié.
(6) Franck Silvent was appointed via co-optation by the Board of Directors on 22 April 2013, replacing Sabine Schimel. The General Meeting on 18 June 2013
ratified his appointment.
183Registration document 2013 / LE GROUPE LA POSTE
Administrative, management and supervisory bodies and Executive Management
Board of Directors 14
from 1999 to 2008. He re-assumed his position as team
leader in September 2008.
Current term of office
• Director of Le Groupe La Poste
Éric Delzant has been a member of the La Poste Board of
Directors since 26 September 2013. Born in 1957, he is a
graduate of Sciences-Po and a former student of ENA (1986-
88, Michel Montaigne Class). Éric Delzant’s career path has
included alternating positions within central government
(Secretary-General of the French government, Ministry of
Finance, and in particular, at the Ministry of the Interior,
where he was an Advisor to the Minister's Office between
2000 and 2001). He has held regional responsibilities within
local authorities (Advisor to the Chairman of the General
Council, then Managing Director of services for the Pas-
de-Calais Region from 2004-2009, and Managing Director
of the Bordeaux Urban District from 2009 to 2012), and
principally within prefectural authorities. He was specifically
Sub-Prefect of Saint-Girons (Ariège), and Provins (Seine-
et-Marne) and Prefect of Haute-Corse (from 2001 to 2003),
then of Ariège (from 2003 to 2004), and more recently, of the
Auvergne Region (2012 to 2013). Since 12 August 2013, Éric
Delzant has been the inter-ministerial delegate for regional
planning and regional attractiveness. He is also in charge of
the State Territory Equality Commission (CGET).
Current term of office
• Director of Le Groupe La Poste
Florence Derouard was elected by the employees on
16 November 2010 from a list sponsored by the SUD-PTT
trade union. She was born in 1963, and holds a bachelor's
degree in law. She joined the PTT in Paris as a Controller
in 1987. After a period in sorting, she worked behind the
counter (as well as at the till and in accounting). In 2000,
she was transferred to the Payroll Department in Rouen,
working on staff pay and family allowances, before moving
to Centre interdépartemental de gestion administrative de
paie (the inter-departmental centre for administrative
management and pay).
Current term of office
• Director of Le Groupe La Poste
Bernard Dupin was elected by the employees on
16 November 2010 from a list sponsored by the CGT trade
union. He was born in 1951. After studying law, he left the
country in 1976 to teach at the Collège Français in Montréal.
In 1982, he was a PTT inspector at the main tax receipts
office at Paris Louvre, then at the Financial Services
Department in Paris and, in 1990, Montpellier Rondelet.
Working as a trade unionist, he became Secretary-General
of the CGT labour union's departmental union for postal
and telecom business in Hérault, then member of the
Federal Bureau for international business until 2011. He
was elected to the European Post and Logistics segment
of the UNI Global Union International Federation and
member of the Management Committee for the executive
segment, which includes 157 trade unions representing
2.5 million employees around the world and is a member
of its Management Committee. Bernard Dupin, now a senior
executive at La Poste, is a member of the regional Economic
and Social Council of Languedoc-Roussillon.
Current term of office
• Director of Le Groupe La Poste
Sylvie Féola, who was elected by the employees on
16 November 2010 from a list sponsored by the CGT trade
union, was born in 1961. After beginning her career at
La Poste as a seasonal employee in 1980, she has since
spent her entire career at the financial centre in Marseilles.
Member of the comité technique paritaire (Joint Technical
Committee) of this centre from 1997 to 2010, she was
elected secretary of the CGT labour union's Bouches-
du-Rhône departmental union of finance workers 13 in
1995, then General Secretary from 1997 to 2010. She
represented the CGT on Committees of various social action
organizations (Assogeva PACA from 1996 to 2000, CTPC
PACA from 2000 to 2007, the Board of the La Couronne
holiday centre from 2006 to 2009), federal manager and
leader of the financial services collective of the CGT 13
federation since 2004. She was an elected representative at
the CGT 13 labour union Bouches-du-Rhône departmental
union office from 2002 to 2008, before sitting on its Executive
Committee until 2010.
Current term of office
• Director of Le Groupe La Poste
Laurence Franceschini has been a member of the La Poste
Board of Directors since 24 June 2009. She was born in
1957, and is a graduate of the Institut d’Études Politiques
de Paris and a former student of the École Nationale
d’Administration. An unranked civil administrator, she
worked as Head of Legal Affairs on the Conseil supérieur de
l’audiovisuel (CSA), then Assistant Manager of audiovisual
communications at the IT and Communications Legal
Department. In April 2004, she was appointed Deputy
Director at the office of the Ministry of Culture and
Communications. From January 2007 to January 2010,
she worked as Head of Media Development at the Prime
Minister’s office and was then appointed Managing Director
of media and cultural industries at the Ministry of Culture
and Communications.
Current terms of office
• Director of Le Groupe La Poste
• Director of France Télévisions
• Director of Radio France
• Director of Foreign Audiovisual
Registration document 2013 / LE GROUPE LA POSTE184
Administrative, management and supervisory bodies and Executive ManagementBoard of Directors14
Director of Agence France-Presse
Director of the Cinema and Cultural Industry Financing
Institute (IFCIC)
Director of the National Library of France
Director of the Arte France TV Channel
Board member of the National Centre of Cinema (CNC)
Board member of the National Centre of Books
Director of the Bibliothèque publique d’information
Jean-Michel Hubert has been a member of the La Poste
Board of Directors since 20 March 2003. He was born in
1939, and is a former student of the École Polytechnique
and École Nationale Supérieure des Télécommunications.
The first years of his career were spent at the national
telecommunications studies centre (CNET), then DINFO.
He later worked for nearly 10 years as Head of Technical
Services, then Head of Financial, real estate and Social
Affairs at the Ministry of the Interior. In September 1986,
he rejoined the City of Paris where he became Secretary-
General in 1992. In January 1997, he was appointed
Chairman of the Telecom Regulatory Authority (ART) for a
six-year term of office. He was subsequently Vice Chairman
of the Conseil général des technologies de l’information (CGTI)
as well as Deputy Ambassador for the World Summit on the
Information Society. From 2003 to 2007, he was Chairman/
delegate of the Conseil stratégique des technologies
de l’information (Strategic Committee for Information
Technologies) (CSTI). From 2006 to February 2013, he
was, alongside the Prime Minister, Deputy Chairman of
the Strategic Committee for Digital Issues (CSN), and he
was also a member of the Supervisory Board of the future
capital expenditure program.
Current term of office
Director of Le Groupe La Poste
Jean-Pierre Jouyet has been a member of the Board of
Directors since 19 July 2012. He was born in 1954, and
holds a post-graduate research diploma (DEA) in public
law. He is also a graduate of the Institut d'Études Politiques
de Paris (IEP) and a former student of the École Nationale
d'Administration (ENA). Appointed as General inspectorate
of Finance upon leaving ENA, he then was Head of the
Tax Legislation Office in the French Ministry of Finance.
From 1988 to 1991, he was the director at the office of
the Ministry of Industry and Regional Planning. In 1991,
he became Deputy Head of the Office of the President of
the European Commission, then Head of the Office from
1994 to 1995. From 1995-1997, he was a partner at the law
firm Jeantet Associés then he was Deputy Director of the
Office of the Prime Minister from 1997 to 2000. He then
held the position of Director of the Treasury, then became
ambassador in charge of international economic affairs in
2004. Briefly Chairman of Barclays France in 2005, he was
then appointed as the Department Head of the General
inspectorate of Finances, a position he held until 2007.
In May 2007, he became Secretary of State in charge of
European affairs with the Minister of Foreign and European
Affairs. At the end of 2008, he took the helm of the Autorité
des marchés financiers (French Financial Markets Authority).
On 19 July 2012, he was appointed as Managing Director of
Caisse des Dépôts et Consignations.
Current terms of office
Managing Director of Caisse des Dépôts et Consignations
Director of Le Groupe La Poste
Chairman of the Management Board of the Fonds de
Réserve pour les Retraites
Chairman of the Board of Directors of BPI
Director of Institut Pasteur
Board member of CNP-Assurances
Philippe Lemoine has been a member of the La Poste
Board of Directors since 26 June 2009, after serving as
a Board Member of La Poste from 2004 to 2007. He was
born in 1949, and is a graduate of IEP Paris; he holds a
degree in law, and successfully passed the French civil law
open examinations; he also holds a postgraduate degree in
economics. He started his career as a researcher. Whilst
he was an engineer at the National Institute for Research
in Computer Science and Control (INRIA), he also studied
sociology at the School for Advanced Studies in the Social
Sciences (EHESS). In 1976, he was called to the Ministry for
Industry to assume responsibility for the “Computerization
of Society” project and helped draw up the Nora-Minc
report. He subsequently joined the office of Norbert Segard
and then Pierre Aigrain (Technology and Society report).
In 1981, he was appointed government representative at
CNIL (1982-1984); in 1982, he took over the “Technology,
Employment, Work” program, becoming Vice Chairman of
the national Committee at the Ministry for Research. At the
end of 1984, he joined the Galeries Lafayette group. In 1998,
he was named Co-Chairman of the Group’s Management
Board (1998-2005). From 1999 to 2009, he sat as a member
with qualified status on the Board of CNIL. Since 1995, he
has been Chairman and Chief Executive Officer of the LaSer
group, a European intermediation and customer relations
company that includes loans in its business model. Philippe
Lemoine chairs the Board of Directors of the Collège de
France Foundation, the Maison des sciences de l’homme
Foundation and the Franco-American Foundation. He is
also Chairman of the “Open Innovation Committee” working
group at Medef, Fondation Internet Nouvelle Génération
185Registration document 2013 / LE GROUPE LA POSTE
Administrative, management and supervisory bodies and Executive Management
Board of Directors 14
(FING), Chairman-Founder of the Forum d’Action Modernités
(FAM) and co-chairman of the Supervisory Board of GS1
France.
Current terms of office
Chairman and Chief Executive Officer of LaSer
Director of Unincofra
Chairman of the Board of Directors of LaSer Cofinoga
Chairman of the Board of Directors of Sygma Bank
Director of Le Groupe La Poste
Chairman of GMGL
Vice-president of the BHV Comité de surveillance
Sole director of GIE Recherche Haussmann
Sole Board member of GIE LaSer Archives
Chairman of the Fondation LaSer Initiatives Solidaires
Chairman of the Open Innovation Committee of Medef
Chairman of the FING Foundation
Board member of the Collège de France Foundation
Board member of the Maison des sciences de l’homme
Foundation
Board member of the Franco-American Foundation
Chairman of the Forum d’Action Modernités Foundation
Co-chairman of the Supervisory Board of GS1 France
Terms of office expired in the last five years
Director of Monoprix
Permanent representative of LaSer Cofinoga on the
Board of Directors of Fidecom
Co-Chairman of the Management Board of the Galeries
Lafayette group
Chairman of the Association Réseau Échangeur
Permanent representative of LaSer Cofinoga on the
Board of Directors of Médiatis
Director of Telemarket
Director of BNP Paribas Personal Finance
Non-voting director of GDF-Suez
Director of établissement public de coopération culturelle
Le 104 (cultural cooperation public sector company)
Michel Lersy was elected by the employees on
16 November 2010 from a list sponsored by the CGT trade
union. He was born in 1961. After working at La Poste
as a seasonal employee, he passed a competitive postal
workers' examination, and was posted to the Paris Gare du
Nord sorting centre in 1982. Three months later, he passed
the AEX-SG exam, and was appointed as a postman on the
Ambulants de l’Est line, before returning to Paris Nord in
September 1983. He joined the Metz sorting centre in 1985,
before being assigned to the industrial mail platform in
Lorraine. He is now a level-one technical and management
staff member. An activist in the CGT since 1982, he was
secretary of the union section of the Metz sorting centre
from 1987 to 1990, elected Secretary General of the CGT-
PTT Departmental Union of Moselle in 1994, then Regional
Secretary of Lorraine in 2001; a position he held until 2010.
He was also a member of the Federal Department from
2001 to 2004, then from 2008 to 2010, and a Board member
then Chairman (1992-1994) of a government restaurant in
Metz and FNR Regional Delegate from 1993 to 1997. Elected
to the Executive Commission of the CGT labour union's
Departmental Union for Moselle until 2010, he served as
Secretary there from 2004 to 2008.
Current term of office
Director of Le Groupe La Poste
Marie-Pierre Liboutet has been a member of the La Poste
Board of Directors since 9 May 2001. She was born in
1956 and holds a bachelor's degree in English; she joined
La Poste as an inspector in 1979. She was a sales manager
in Vesoul until 1984, and was transferred to Haute-Vienne in
1985. Within the CFDT Post Office and Telecommunications
Federation, she was National Secretary for La Poste
and the public sector from 1990 to 1994 and served as
Secretary General from 1994 to 2001. She represented
the Federation at the National Confederation Office from
1995 to 2001. At that time, she rejoined La Poste as Head
of Communications for Haute-Vienne. In 2008, she became
Head of Communications for the Local Operational Mail
Department of Limousin.
Current term of office
Director of Le Groupe La Poste
Françoise Malrieu has been a member of the La Poste
Board of Directors since 17 December 2005. She was
born in 1946, and is a graduate of HEC and the Financial
Analysis Training Centre (CFAF); Françoise began her
career at BNP in 1969, where she worked as a financial
analyst. Vice President (1974) responsible for monitoring
equity investments in the BNP group’s corporate banking
arm, Banexi, she was appointed Assistant Manager of
the Financial Analysis Department in 1979, heading this
Department in 1982. At the same time, she was elected
General Secretary then Vice President of the Société
française des analystes financiers (SFAF). She continued
her career in mergers & acquisitions at Lazard Frères
(1987-2001), where she was appointed as a Board member,
Manager, and then Managing Partner in charge of the
Mergers & Acquisitions team, before joining Deutsche Bank
(2001-2003) as a Managing Director in Paris and London,
as Head of the Corporate Finance Team for France and a
consultant banker, before moving to Aforge Finance where
she was a Managing Partner until 2009. She was appointed
as a Board member (2008) and then Chairperson of the
Board of Directors (2010) of the Société de Financement
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de l’Économie Française (SFEF). During 2010, she was the
deputy inspector of market professionals’ remuneration.
Since May 2013, she has been a member of the Board of
Directors of the Institut Français des Administrateurs (IFA).
Current terms of office
Director of Le Groupe La Poste
Chairperson of Société de Financement de l’Économie
Française Board of Directors
Director of Aéroports de Paris
Director of GDF-Suez
Member of the Supervisory Board of Bayard Presse SA
Terms of office expired in the last five years
Managing partner of Aforge Finance
Deputy inspector of market professionals’ remuneration
Sophie Mantel has been a member of the La Poste Board of
Directors since 26 September 2013. She was born in 1965,
and is a graduate of the École Polytechnique (1987) and the
ENSAE (École Nationale de la Statistique et de l'Administration
Économique—1989); Sophie is the Controller-General
of Economics and Finance. She began her career in the
Forecasting Department (1989-1992), before joining the
Budget Department where she managed the 6C offices
(pension plans, pension funds, etc.), then 2A offices (wage
policy and public sector employment, etc.). She was Special
advisor to the Budget Director in 1999, then in 2001, she
joined the organic law project team and was responsible
for the implementation of organic law pertaining to finance
law (LOLF) in terms of staff expenditure. In 2006, Sophie
Mantel became the Head of the Management Systems
Processes and Functionalities Department in the DGME
(State Modernization Executive Management before joining
the Budgetary Audit and Internal Control Mission (MACIB)
where she took over management in 2011. Since August
2013, she has been Head of the Department, assistant to
the Director of Budget.
Current terms of office
Director of Le Groupe La Poste
Director of La Française des Jeux
Board member of PMU
Director of Institut Pasteur
Christian Martin has been a member of the Board of
Directors of La Poste since 24 January 2013. He was born in
1955, and is a graduate of the Institut d’Études Politiques de
Paris, holds an engineering degree from the École Nationale
des Ponts et Chaussées, and is a former student of the ENA.
Auditor at Cour des comptes / French Court of Auditors
(1987-1991), from 1991-1992 he was deputy director of the
Office of the Ministry of Agriculture, then Board member of
the Office of the Ministry in charge of Parliament Relations,
government spokesperson (1992-1993). Referendum
Advisor (1991-2004), he was Mayor of Draguignan (Var) from
1995 to 2001, Regional Advisor and Deputy Vice-Chairman
of Culture for the Provence-Alpes-Côte d’Azur region from
1998 to 2010, and Chairman of société d’économie mixte for
the Provence-Alpes-Côte d’Azur region from 1998 to 2004.
He has been Chief-Advisor at the Cour des comptes / French
Court of Auditors since 2004 in the 4th Chamber, responsible
for the "public safety" segment.
Current term of office
Director of Le Groupe La Poste
Jacques Pélissard has been a member of the La Poste
Board of Directors since 17 December 2005. He was born
in 1946, is a former student of the Lyon Law School, and
a graduate of the Institut d’Études Politiques de Paris
(1970); he was awarded a bachelor of arts degree from
the University of Lyon in 1971. From 1971 to 1974, he was
a professor of economic law at the École supérieure de
commerce de Lyon, and then a lawyer in Lyon, and in Lons-
le-Saunier until July 1993. He has been the Mayor of Lons-
le-Saunier (in the Jura Prefecture) since 1989. He has been
Chairman of the communauté d’agglomération (Conurbation
authority) of the Lons-le-Saunier basin since 2000. He has
been a Deputy of Jura (member of the Finance Commission
of the National Assembly) since 1993. Since 18 November
2004, Jacques Pélissard has been the Chairman of the
French Mayors Association. He is also a member of the
Local Finance Committee.
Current term of office
Director of Le Groupe La Poste
Michel Pesnel was elected by the employees on
16 November 2010 from a list sponsored by the FO trade
union. He was born in 1952. After studying Philosophy,
he passed the examination to become a Post Office and
Telecoms (PTT) inspector in 1979. He went on to work at
the Institut national de gestion d’Évry, the Basse-Normandie
Regional Department of La Poste, and the École Nationale
Supérieure des Postes et des Télécommunications (ENSPTT)
as Head of Continuing Education. He holds a master’s
degree in defense and was a former auditor at IHEDN.
He is also a defense advisor to the Prefecture of Basse-
Normandie. A member of the Executive Committee of
FO Communication since 1990, he became National
Secretary in 1993, then Deputy General Secretary. He has
sat on the Conseil supérieur de la fonction publique d’État
and Supervisory Board of Le Groupe La Poste’s employee
savings program.
Current term of office
Director of Le Groupe La Poste
Odile Renaud-Basso has been a member of the Board of
Directors of La Poste since 12 December 2013. She was
born in 1965, and is a graduate of the Institut d’Études
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Administrative, management and supervisory bodies and Executive Management
Board of Directors 14
Politiques de Paris and a former student of the ENA (Jean
Monnet Class). After beginning her career as an auditor
at the Cour des comptes / French Court of Auditors (1990-
94), she joined the Department of Treasury where she held
positions pertaining to international, industrial and financial
issues. In 2005, she was appointed Director of the European
Commission (Directorate general for economic and financial
affairs) and continued her career in the European spheres.
In early 2010, she became Assistant Head of the office of the
President of the European Council, Herman van Rompuy.
In May 2012, she became Deputy Director of the office of
the Prime Minister, Jean-Marc Ayrault. Since 1 September
2013, she has been Deputy Managing Director of the Caisse
des Dépôts Group and Director of Savings funds.
Current terms of office
Director of Le Groupe La Poste
Board member of CNP-Assurances
Antoine Saintoyant has been a member of the La Poste
Board of Directors since 22 April 2013. He was born in 1977
and is a graduate of the Institut d’Études Politiques de Paris;
Antoine was appointed as business advisor in 2003 upon
graduating from ENA (René Cassin class). He was Deputy
Head of Multifin 4 (international financial system) in the
French Treasury and Economic Policy Department in Bercy
(2003-2007), and then acted as an advisor (financial and
institutional services, banks, stock market, and insurance)
for Financial and Monetary Affairs at the Permanent
Representation of France at the European Union in Brussels
(2007-2009). While he was Head of banks and credit
institutions at the French General Treasury and Economic
Policy Directorate, which became the French Treasury (in
March 2010) between 2009 and 2012, he was also Deputy
Secretary-General of the French Financial Legislation
and Regulation Advisory Council. Since July 2012, Antoine
Saintoyant has been Head of the C1 office (La Poste and
Orange) of the Agence des Participations de l'État (APE) at
the Ministry of the Economy and Finance, before being
named Director of equity investments, Deputy-Director of
Aviation and Defense in August 2013.
Current terms of office
Director of Le Groupe La Poste
Board member of Orange
Board member of Société de Financement Local (SFIL)
Board member of ODAS
Terms of office expired in the last five years
Board member of SPPE
Franck Silvent has been a member of the Board of Directors
of La Poste since 22 April 2013. He was born in 1972, and
is a graduate of Institut d’Études Politiques de Paris; Frank
joined the General Inspectorate of Finance in 1998 upon his
graduation from ENA (Valmy class). He was seconded as
Deputy Director of strategy, finance, management control
and accounting at Caisse des Dépôts et Consignations
(2002-2005). Director of financial development strategy
and member of the Management Board (2005-2009), then
Deputy Chief Executive of Compagnie des Alpes (March-
October 2009), he was then Associate Managing Director of
this group (2009-2012). Since January 2013, Franck Silvent
has been director of strategy, sustainable development
and research for Caisse des Dépôts. In May 2013, he was
appointed director of the finance, strategy, subsidiaries and
international division of the Caisse des Dépôts Group. In
October 2013, he became director of the finance, strategy
and equity investments division of the Caisse des Dépôts
Group.
Current terms of office
Director of Le Groupe La Poste
Board member of BPI France Participations
Board member of BPI France Investissements
Board member of BPI Groupe
Board member of CNP Assurances
Director of Icade
Board member of Transdev Group
Terms of office expired in the last five years
Board member of Santoline
Board member of Compagnie du Mont Blanc
Board member of Lafuma
Board member of Société du Parc du Futuroscope
Associate Managing Director of La Compagnie des Alpes
Chairman of the Supervisory Board of La Compagnie des
Alpes—Domaines Skiables
Vice-Chairman of the Supervisory Board of Domaine
Skiable de Griffe
Vice-Chairman of the Supervisory Board of Domaine
Skiable de Flaine
Member of the Supervisory Board of Looping Holding
Board member of Premier Financial Services
Board member of Swissalp
Board member of Belpark
Board member of Grévin et Compagnie
Board member of Musee Grévin
Board member of Safari Africain de Port-Saint-Père
Board member of Valbus
Philippe Wahl has been a member of the La Poste Board
of Directors since 1 August 2013. He was born in 1956,
and is a graduate of Sciences-Po Paris, a former student
of the ENA, and holds a Postgraduate Research Degree in
Economics. He began his career as an auditor and maître
des requêtes (Master of Requests) at the French Council
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of State. Special advisor to the Chairman of the COB
(1986), in 1989 he joined the office of Michel Rocard, prime
minister, as technical advisor for economic, financial and
tax affairs. Advisor to the Chairman of Compagnie Bancaire
(1991), then Deputy Chief Executive (1994), in 1997 he was
appointed Head of Specialist Financial Services at Paribas.
In 1999, he became Managing Director of Caisse Nationale
des Caisses d’Épargne. Through this, he became Chairman
of Sopassure and of the Board of Directors of Écureuil
Assurances IARD, and a member of the Supervisory Boards
of CDC Ixis and CNP Assurances. Philippe was appointed
Managing Director of the Havas Group in 2005, and became
Vice-Chairman of the Bolloré Group in 2006. After joining
the Royal Bank of Scotland as Managing Director for France
in 2007, he was appointed as an advisor to the Global
Banking and Markets Board in London and Managing
Director for France, Belgium and Luxembourg in 2008,
before being appointed Chairman of the Management Board
of La Banque Postale and Group Deputy Chief Executive
Officer of Le Groupe La Poste in January 2011. Philippe
Wahl became CEO of Le Groupe La Poste in September
2013, and became Chairman of the Supervisory Board of
La Banque Postale in October of that year.
Current terms of office
Director of Le Groupe La Poste
Chairman of the Supervisory Board of La Banque Postale
Permanent representative of Le Groupe La Poste and
Director of GeoPost, Sofipost and Poste Immo
Director of Sopassure
Director of CNP Assurances
Terms of office expired in the last five years
Chairman of the Management Board of La Banque
Postale
Director of Société de Financement Local (SFIL)
Chairman of the Supervisory Committees of La Banque
Postale Financement, XAnge Private Equity, La Banque
Postale Gestion Privée and La Banque Postale Asset
Management
Chairman of the Board of Directors of La Banque Postale
Assurance Santé, La Banque Postale Prévoyance and
La Banque Postale Assurances IARD
Chairman and Chief Executive Officer of SF2 and
Sopassure
Member of the Supervisory Board of Fonds de Garantie
des Dépôts
Managing Director of Royal Bank of Scotland PLC
Vice-Chairman of the Supervisory Board of Société
Financière de Paiements
Élyane Zarine has been a member of the Board of Directors
of La Poste since 17 December 2005. She was born in 1941.
After working in different administrative positions in film
and credit sales from the age of 20, she joined Air France
in 1968, where she worked as a salesperson, manager,
training officer, coordinator, and Head of Recruitment at
the Charles-de-Gaulle HR Department for 30 years. In
1998, following a company audit at the Centre of Obstetric
Surgery in Hauts-de-Seine, she took over the running of this
clinic. From 2000 to 2003, she was Head of Administration
and Human Resources at a medical analysis laboratory.
From 2003 to 2011, she sat on the Boards of Directors
of several social housing companies and has been the
Chairperson of housing committees. Chairperson of
the Organisation générale des consommateurs (General
Consumer Organization—Orgeco) from 2008 to 23 May
2012, she was chairperson of OR.GE.CO Paris. In October
2010, Minister Hervé Novelli appointed her as chairperson
of the Commission de la médiation de la consommation
(Commission of Consumption Mediation—CMC) and Board
member of Credoc.
Current terms of office
Director of Le Groupe La Poste
Chairperson of CMC
Chairperson of Orgeco Paris
Director of the Institut national de la consommation
Director of Credoc
Director of CISS, CNC and CEC
Terms of office expired in the last five years
SADIF
ASH, ASH GIE
Orgeco
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Executive Management 14
14.2 Executive Management
14.2.1 Combined offices of Chairman of the Board of Directors and Chief Executive Officer
Company management is the responsibility of the Chairman
of the Board of Directors, who acts as Chief Executive
Officer in accordance with Article 14 of the Company’s
articles of association.
He is appointed from among the directors by decree,
following a proposal by the Board of Directors.
Mr Phi l ippe Wahl was appointed Chairman and
Chief Executive Officer of La Poste by a decree dated
26 September 2013, following the Board of Directors’
proposal to the President of France.
14.2.2 Remit of the Chairman and Chief Executive Officer
The Chairman and Chief Executive Officer organizes and
coordinates the work of the Board of Directors and reports
to the General Meeting on that work. He oversees the
proper functioning of the Company’s corporate bodies and,
in particular, ensures that directors are in a position to fulfil
their duties.
The Chairman and Chief Executive Officer is fully
empowered to act in all circumstances on the Company’s
behalf, within the corporate purpose and subject to the
powers of the General Meeting and those reserved for the
Board of Directors by law, Le Groupe La Poste’s articles of
association, as well as the Board’s by-laws as adopted on
10 February 2011.
Accordingly, he must obtain prior approval from the Board
of Directors for:
a) any transaction (including any material change
thereto) involving acquisitions, equity investments,
asset disposals (including financial, excluding day-to-
day treasury management), capital restructuring (in
particular mergers, spin-offs or asset transfers, with the
exception of Le Groupe La Poste internal transactions)
for a unit amount of over €30 million, this threshold
including, as the case may be, the price, the net debt of
the target, the amount of any purchase or subscription
guarantee made by La Poste and any off-balance sheet
commitments given;
b) any transaction (including any material change thereto)
involving a business combination, disposal or issue of
equity securities or financial instruments convertible
to share capital carried out by La Poste (or to which
La Poste is party), for a unit amount of over €30 million,
this threshold including, as the case may be, the price,
the net debt of the target, the amount of any purchase
or subscription guarantee made by La Poste and any
off-balance sheet commitments given; any strategic
partnership with average annual revenue over the time
frame of its business plan of more than €30 million
(including the renewal of any partnership);
c) any capital expenditure or divestment transaction
(including any material change thereto) not covered
by item b) above, carried out by La Poste (or to which
La Poste is party) for a unit amount of over €200 million,
this threshold including, as the case may be, any given
off-balance sheet commitments;
d) any transaction (including any material change thereto)
involving debt, cash or hedging management (excluding
day-to-day management) carried out by La Poste for a
unit amount of over €700 million per transaction;
e) any transaction (including any material change thereto)
involving the securitization of financial or commercial
assets carried out by La Poste for a unit amount of over
€100 million per transaction;
f) any new direction for La Poste’s business activities or
a change in its purpose, or any material transaction
reflecting a new direction for the business or a strategic
refocusing of La Poste;
g) any decision to bring legal (including arbitration),
regulatory or administrative proceedings by La Poste
or to enter into a settlement agreement or arbitration
agreement with respect to legal, regulatory or
administrative proceedings to which La Poste is party,
for a unit amount of over €50 million, it being added that
where a number of such actions are based on the same
or a related event, this threshold is assessed based on
all relevant actions;
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h) any decision to carry out a public offering of financial
instruments issued by La Poste outside programs that
were already authorized as part of the budget approval
by the Board of Directors;
i) any material change or planned material change to
Le Groupe La Poste's accounting practices.
In addition, the Chairman and Chief Executive Officer is
expressly authorized to provide bonds, guarantees and
endorsements binding Le Groupe La Poste up to an overall
annual limit excluding tax set by the Board of Directors, and
a maximum unit amount before VAT of €75 million.
The Chairman and Chief Executive Officer is authorized to
delegate these powers.
14.2.3 Executive Committee
The Executive Committee is the body for discussing strategy,
consulting on all cross-entity Group issues, considering
important decisions and monitoring targets and operating
profit/(loss). It meets every Monday under the chairmanship
of the Chairman and Chief Executive Officer.
Executive Committee members are appointed by the
Chairman and Chief Executive Officer. In accordance
with the by-laws of Le Groupe La Poste’s Remuneration
and Governance Committee (Article 1.2), the Chairman
and Chief Executive Officer informs the Remuneration
Committee of the appointment, remuneration and planned
replacement of the executives of Le Groupe La Poste and its
main subsidiaries. Where appropriate, the Committee may
pass its observations on to the Board of Directors.
Membership of the Executive Committee is as follows:
Philippe Wahl Chairman and Chief Executive Officer
Georges Lefebvre Executive Officer
Nathalie Andrieux Deputy Chief Executive Officer in charge of digital technology
Chairperson of Mediapost
Philippe Bajou Deputy Chief Executive Officer
Managing Director of La Poste Retail Brand
Paul-Marie Chavanne Deputy Chief Executive Officer
Director of Parcels
Chairman of GeoPost
Marc-André Feffer Deputy Chief Executive Officer in charge of strategy, innovation, international
development, regulations, legal affairs and real Estate
Chairman of Poste Immo
Sylvie François Deputy Chief Executive Officer
Director of Human Resources and Employee Relations
Xavier Girre Deputy Chief Executive Officer
Chief financial officer
Nicolas Routier Deputy Chief Executive Officer
Managing Director of Mail
Chairman of Sofipost
Jacques Savatier Deputy Chief Executive Officer responsible for regional development and the
corporate governance bodies
Director of regional affairs and of the public service
Rémy Weber Deputy Chief Executive Officer
Chairman of the Management Board of La Banque Postale
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Executive Management 14
Philippe Wahl. Born in 1956, he is a graduate of Sciences-
Po Paris, a former student at the ENA, and holds a DEA
in economic science. He began his career as an auditor
and maître des requêtes (Master of Requests) at the French
Council of State. Special advisor to the Chairman of the COB
(1986), in 1989 he joined the office of Michel Rocard, Prime
Minister, as technical advisor for economic, financial and
tax affairs. Advisor to the Chairman of Compagnie Bancaire
(1991), then Deputy Chief Executive Officer (1994), in 1997
he was appointed Head of Specialist Financial Services
at Paribas. In 1999, he became Managing Director of
Caisse Nationale des Caisses d’Épargne. Through this,
he became Chairman of Sopassure and of the Board of
Directors of Écureuil Assurances IARD, and a member of
the Supervisory Boards of CDC Ixis and CNP Assurances.
He was appointed Managing Director of the Havas Group in
2005, and became Vice-Chairman of the Bolloré Group in
2006. After joining the Royal Bank of Scotland as Managing
Director for France in 2007, he was appointed as an Advisor
to the Global Banking and Markets Board in London and
Managing Director for France, Belgium and Luxembourg in
2008, before being appointed Chairman of the Management
Board of La Banque Postale and Group Deputy Chief
Executive Officer of Le Groupe La Poste in January 2011.
Philippe Wahl became CEO of Le Groupe La Poste in
September 2013, and became Chairman of the Supervisory
Board of La Banque Postale in October of that year.
Georges Lefebvre. Born in 1952, Georges Lefebvre holds a
degree in mathematics and is a graduate of ENSPTT (École
nationale supérieure des postes et des télécommunications).
He joined the P.T.T. in 1970 and became Head of Personnel
at the Le Groupe La Poste du Nord regional division
(1981-1983). He then served as Director of the Office of
the Regional Director of La Poste du Nord-Pas-de-Calais
(1983-1986), Departmental Director for Marne (1987-1990)
responsible for handling relations with senior executives
of Le Groupe La Poste on behalf of the Managing Director
(1990-1994), and Director of Human Resources at La Poste
Greater Paris regional delegation (1994-1997). In 1997, he
joined the office of Christian Pierret, Secretary of State
for Industry, as a technical advisor for social security, post
offices and telecommunications, before becoming Director
of Human Resources (1998-2001), Deputy Chief Executive
Officer (2001-2002) then Managing Director (2002-2010) of
Le Groupe La Poste. Since Le Groupe La Poste’s change
of status, he has been an executive officer and Director of
Human Resources and Labour Relations for La Poste S.A.
Since September 2012, he has been an executive officer of
the Group, in charge of cross-entities policies and Group
cohesion.
Nathalie Andrieux. Born in 1965, she holds an engineering
degree from the école supérieure d’informatique Supinfo.
Nathalie Andrieux began her career in the Banques
Populaires Group where she was entrusted with
information systems development projects. In 1997, she
joined Le Groupe La Poste as Head of Information Systems
Management. In late 2001, she took charge of marketing
strategy in the Strategy Department, and in 2003, she was
appointed director of DIDES (Department of Innovation
and E-Services). In 2004, she became Managing Director
of Mediapost and Chairperson as at 2009. In September
2011, she created and took the helm of Mediapost
Communication. While she was Chairperson of Mediapost
Communication, in September 2012, Natalie Andrieux
became Deputy Chief Executive Officer of Le Groupe
La Poste, in charge of digital technology. On 18 January,
2013, she was appointed member of the Conseil national du
numérique (French National Digital Council).
Philippe Bajou. Born in 1958, he graduated from École
Nationale Supérieure des P.T.T. in 1989. He began his
career at Le Groupe La Poste in 1982. Special Advisor at
the Ministry of P.T.T. with the Director of Common Affairs
from 1989 to 1990, he then held various positions within
the Finance Department of La Poste, then was appointed
Director of Financial Affairs and Equity Investments at
La Poste in 1995. He was responsible for the CCP fund
management project in November 1998, which resulted
in the formation of Efiposte in March 2000, where he
became Managing Director. He became a member of the
Banque Postale Management Board on 1 January 2006, and
remained in that position until December 2012. Since then,
he has been the Group Deputy Chief Executive Officer, and
Managing Director of La Poste Retail Brand.
Paul-Marie Chavanne. Born in 1951, Paul-Marie Chavanne
is a graduate of the École centrale des arts et manufactures
de Paris, a former student of ENA and an Inspector of
Finance. After starting out at the General Inspectorate of
Finance (1978-1982) and then the Treasury Department
(1982-1989), he became Head of Strategy and Development
at Soparges (1989-1992), then Deputy Chief Executive Officer
of Automobiles Citroën (1992-1997), before joining Strafor
Facom as Managing Director (1997-1998) and subsequently
Chairman and Chief Executive Officer (1998). After chairing
the Management Board of Auto Distribution, he became
Head of Parcels (in 2001), Chairman of GeoPost (in 2001)
and at the same time Executive Officer (2002-2010) then
Deputy Chief Executive Officer (2010) of Le Groupe La Poste.
Marc-André Feffer. Born in 1949, he holds a master's
degree in public law, is a graduate of Sciences-Po Paris and
is a former student of the ENA. Marc-André Feffer has been
maître des requêtes at the Council of State, Secretary General
of the Electoral Council (1979-1981), advisor to the office of
Gaston Thorn, Chairman of the European Commission (1981-
1984), Managing Director of the Centre Mondial Informatique
(1984-1985), and Head of the Legal and IT Department at
the offices of the Prime Minister (1985-1988). He then
joined the Canal+ Group, working as Secretary General
(1988), Executive Officer (1994), Deputy Vice Chairman of the
Group (1995-2000), and Vice Chairman of the Management
Board and General Counsel (2001-2003). With Le Groupe
La Poste since 2004, he is responsible for strategy and
innovation, international development and legal, real estate
and regulatory affairs, and has been Vice Chairman of the
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Supervisory Board since 2005 of Efiposte—now part of
La Banque Postale—Chairman of Poste Immo and XAnge
Capital, and Group Deputy Chief Executive Officer.
Sylvie François. Born in 1954, Sylvie François is a graduate
of Sciences-Po and holds a bachelor's degree in law and
a DEA in labour law. Upon her exit from the ENA, in 1980,
she was appointed office manager at the délégation à
l’Emploi (Delegation for Employment) within the Ministry
of Labour. Then she alternated positions in the Ministerial
office and positions of responsibility in the administration
until 1997: technical advisor to the Minister of Social Affairs
and Health in 1983, Director of the Office of Secretaries of
State for technical education from 1985 to 1986, and from
1988 to 1989, technical advisor in charge of public service
resurgence for the Prime Minister, and between 1989 and
1992, Deputy Director of training at the Ministry of Higher
Education and Research. In 1997, she joined the Crédit
Commercial de France as Director of Human Resources.
She held this position until February 2008, when she
became the Director of Human Resources and Financial
Services for La Banque Postale. In September 2012, she
was appointed Deputy Managing Director of Le Groupe
La Poste, Director of Human Resources and Employee
Relations.
Xavier Girre. Born in 1969, he is a graduate of HEC,
Sciences-Po Paris, holds a master's degree in Business
Law and is a former student of the ENA. He began his
career in 1995 as an auditor at Cour des comptes / French
Court of Auditors before being appointed as conseiller
référendaire (a magistrate responsible for verifying public
accounting) three years later. After joining Dalkia (Vivendi
Environnement) in 1999 as Special Advisor to the Chief
Executive Officer, he became Director of Audit at Vivendi
Environnement (renamed Veolia Environnement in 2003) in
2002, and became Chief Risk Officer, responsible for audits,
risk management and insurance, in 2004. He was appointed
Chief Financial Officer and Deputy Chief Executive Officer in
charge of finance, information systems, procurement and
risk management at Veolia Transport in 2007. He was Chief
Financial Officer of Veolia Propreté and Executive Director for
Central Europe of that division of Veolia Environnement Group
before being named Deputy Chief Executive Officer, Chief
Financial Officer of Le Groupe La Poste in November 2011.
Nicolas Routier. Born in 1963, he is a graduate of
Sciences-Po Paris, holds a bachelor's degree in Economics
from Paris-I Panthéon-Sorbonne, and is a graduate of
ENSPTT. Mr. Routier joined Le Groupe La Poste's Finance
Department as Head of strategic planning (1988-1991),
then Head of management control (1991-1994). From 1994
to 1997, he was director of La Poste de l’Oise. In 1997, he
joined La Poste's Management Committee and created
the Purchasing Department, which he managed until
2001. At the same time, he was director of management
control (1998-2001). In 2001, he became director of Group
strategy then joined the Group's Executive Committee. He
has since become a director of Sopassure, member of the
Supervisory Board of CNP (2001-2003) and a director of
GeoPost (since 2001). In 2002, he was appointed Executive
Officer responsible for Group strategy and development, and
Chairman of Sofipost. In 2004, he became an Advisor to the
Group Chairman and CEO of Mediapost until 2009. At the
same time, he was Chairman of STP from 2005 to 2009 and
of Neopress from 2007 to 2009. Since 2009, he has been a
Group Deputy Chief Executive Officer of Le Groupe La Poste,
Managing Director of Mail and Chairman of Sofipost.
Jacques Savatier Jacques was born in 1952, and hold an
Agricultural Engineering and Engineering Degrees from the
École des Ponts, des Eaux et des Forêts. He began his career
at the General Agronomy Inspectorate for the Central
France Region (1976-1978), and then at the Inspectorate
for the Poitou-Charentes Region (1978-1981). He was
appointed as a Special Advisor for Agriculture, Rural
development, the Environment and Education to the Prefect
of the Poitou-Charentes Region in 1981, before joining the
Poitou-Charentes Regional Council in 1982, initially as Head
of Rural Affairs, and then of Economic Affairs, Regional
Planning and the Environment. He was appointed as Special
Advisor to the Prefect of the Poitou-Charentes Region
in 1990, and was specifically responsible for a national
assignment on behalf of the DATAR (coastal development,
and application of the Act of 1986). Between 1992 and 1993,
he worked as the Regional Director for the Environment for
the Poitou-Charentes Region. He was Director of Tourism
at Futuroscope for the Vienne General Council between
1993 and 1997, and then became Secretary General for
Regional Affairs at the Central France Prefecture (SGAR)
in 1997. He was appointed as a Director and Advisor to the
Chairman and Chief Executive of La Poste in 2003, where he
was responsible for regional consultation and coverage. He
also became the Group's Managing Director of Sustainable
Development in 2008. He has been the Director of Regional
Affairs and the Public Service since 2010.
Rémy Weber. Born in 1957, he graduated from the Institut
d’Études Politiques (IEP) in Aix-en-Provence and from
the École des Hautes Études Commerciales (HEC). Rémy
Weber began his career in 1983 as chargé d'affaires in
the Operations Department of the Banque Française de
Commerce Extérieur (BFCE), before landing a position
as Special Advisor to the Ministry of Finance regarding
international business and the Department of Treasury
matters (1987-89). He then became assistant manager at
BFCE (1990-92), then joined Lyonnaise de Banque where
he was Regional Director in charge of the Lyon network
(1993-94), Secretary-General (1995-97), Director of
Operations (1996-97), Deputy Chief Executive Officer (1997-
99), Managing Director (1999-2002) and lastly Chairman
and Managing Director—a position which he held until
his appointment as Chairman of the La Banque Postale
Management Board on 15 October 2013.
193Registration document 2013 / LE GROUPE LA POSTE
Administrative, management and supervisory bodies and Executive Management
Absence of family ties, convictions and conflicts of interest 14
14.3 Absence of family ties, convictions and conflicts
of interest
14.3.1 Absence of family ties between members of the administrative bodies and Executive Management
To the best of La Poste’s knowledge, there are no family ties between (i) the corporate officers of La Poste or (ii) the members
of the Executive Committee.
14.3.2 Absence of convictions for fraud handed down to the members of administrative bodies and Executive Management
To the best of La Poste’s knowledge, none of the
(i) corporate officers of La Poste or (ii) members of the
Executive Committee:
have been convicted of fraud in the last five years;
have been declared bankrupt, put into receivership or
undergone liquidation in the last five years;
have been subject to incrimination or official public
sanction delivered by statutory or regulatory authorities
in the last five years.
Furthermore, to the best of La Poste’s knowledge, none of
(i) the corporate officers of La Poste or (ii) the members of
the Executive Committee, have been barred from acting as
a member of an administrative, management or supervisory
body of an issuer or from managing or conducting the
business of an issuer in at least the last five years.
14.3.3 Conflicts of interest within the administrative bodies and Executive Management
To the best of La Poste’s knowledge, and on the date this
registration document was filed, there were no potential
conflicts of interest at La Poste between the duties of
the corporate officers and members of the Executive
Committee, and their private interests or other duties.
To the best of La Poste’s knowledge, there are no
arrangements or agreements between shareholders,
customers, suppliers or any other parties under which a
member of the Board of Directors has been appointed to
this position.
Registration document 2013 / LE GROUPE LA POSTE194
195Registration document 2013 / LE GROUPE LA POSTE
15
15.1 Remuneration and benefits paid to corporate officers 196
15.2 Total provisions and amounts recognised for pensions and other benefits 200
Remuneration and benefits
Registration document 2013 / LE GROUPE LA POSTE196
Remuneration and benefits Remuneration and benefits paid to corporate officers15
15.1 Remuneration and benefits paid to corporate officers
15.1.1 Rules for setting the remuneration of corporate officers—Procedures for setting the remuneration of the Chairman and Chief Executive Officer
Decree No. 53-707, dated 9 August 1953, pertaining to
the French government’s control over national public
corporations and certain organizations which have a social
or economic purpose, is modified in its Article No.3 by
Decree No.2012-915 dated 26 July 2012, in order to institute
a limit to the fixed and variable remuneration of Executive
Directors of public corporations and establishments to
€450,000 gross annually.
La Poste currently has just one corporate executive officer,
its Chairman and Chief Executive Officer The office was
held by Mr Jean-Paul Bailly until 25 September 2013, and
currently by Mr Philippe Wahl since 26 September 2013.
During its meeting on 22 April 2013 regarding the
remuneration of Jean-Paul Bailly, and its meeting on
12 December 2013 regarding the remuneration of Philippe
Wahl, the La Poste Board of Directors set the total
remuneration of the Chairman and Chief Executive Officer
at €450,000.
15.1.1.1 Fixed annual remuneration
The fixed portion of the remuneration of the Chairman Chief
Executive Officer of La Poste is subject to a ministerial
decision, in accordance with Decree No.53-707 dated
9 August 1953.
This Decree was modified by Decree No.2012-915 dated
26 July 2012 pertaining to the French government’s control
of the remuneration of officers of public corporations.
15.1.1.2 Variable remuneration
At its meetings on 22 April 2013 and 12 December 2013,
the Board of Directors decided not to grant variable
remuneration to Jean-Paul Bailly and to Philippe Wahl,
respectively.
15.1.1.3 Company car
A Company car is made available to the Chairman and Chief
Executive Officer La Poste bears all costs related to the
Company car (i.e. maintenance, insurance and fuel). This
benefit is accounted for as a benefit in kind.
15.1.1.4 Health and personal risk insurance coverage
The Chairman and Managing Director of La Poste is not
covered by any specific health and personal risk insurance
plan.
However, like the other Board members of La Poste, he is
covered by a supplementary health and personal risk plan,
for which the premiums are all paid by La Poste.
15.1.1.5 Pension plan
The Chairman and Managing Director of La Poste does not
receive any supplementary pension plan.
Regarding supplementary retirement, he has the same plan
as the senior executives of La Poste.
15.1.1.6 Directors' fees
The Chairman and Chief Executive Officer of La Poste does
not receive directors' fees for his position as a director of
La Poste.
197Registration document 2013 / LE GROUPE LA POSTE
Remuneration and benefits Remuneration and benefits paid to corporate officers 15
15.1.2 Corporate officers’ remuneration
15.1.2.1 Remuneration paid to Mr Philippe Wahl, Chairman and Chief Executive Officer, as from 26 September 2013
TABLE 1: SUMMARY OF REMUNERATION AWARDED TO THE CHAIRMAN AND MANAGING DIRECTOR—
MR PHILIPPE WAHL
Philippe Wahl, Chairman and Chief Executive Officer From 26/09/2013 to 31/12/2013
Remuneration due for the financial year (including benefits in kind) €119,272
Valuation of options awarded during the financial year N/A
Valuation of performance shares awarded during the financial year N/A
Total (including benefits in kind) €119,272
Total (excluding benefits in kind) €118,500
Gross before tax
TABLE 2: SUMMARY OF THE CHAIRMAN AND MANAGING DIRECTOR’S REMUNERATION—
MR PHILIPPE WAHL
Philippe Wahl, Chairman and Chief Executive Officer
From 26/09/2013 to 31/12/2013
Amount due Amount paid
Fixed remuneration €118,500 €118,500
Variable remuneration N/A N/A
Maximum % N/A N/A
% awarded N/A N/A
Special remuneration N/A N/A
Directors' fees N/A N/A
Total (excluding benefits in kind) €118,500 €118,500
Benefits in kind €772 €772
Total €119,272 €119,272
Gross before tax
Registration document 2013 / LE GROUPE LA POSTE198
Remuneration and benefits Remuneration and benefits paid to corporate officers15
15.1.2.2 Remuneration of Mr Jean-Paul Bailly, Chairman and Chief Executive Officer until 25 September 2013
TABLE 1: SUMMARY OF REMUNERATION AWARDED TO THE CHAIRMAN AND MANAGING DIRECTOR—
MR JEAN-PAUL BAILLY
Jean-Paul Bailly, Chairman and Chief Executive Officer
From 01/01/2013
to 25/09/2013 2012
Remuneration due for the financial year (including benefits in kind) €384,086 €453,865
Valuation of options awarded during the financial year N/A N/A
Valuation of performance shares awarded during the financial year N/A N/A
Total (including benefits in kind) €384,086 €453,865
Total (excluding benefits in kind) €380,917 €450,000
Gross before tax
TABLE 2: SUMMARY OF THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER—MR JEAN-PAUL BAILLY'S
REMUNERATION
Jean-Paul Bailly,Chairman and Chief Executive Officer
From 01/01/2013 to 25/09/2013 2012
Amount due Amount paid Amount due Amount paid
Fixed remuneration €337,500 €337,500 €404,072 €404,072
Variable remuneration (a) €43,417 €43,417 €45,928 €45,928
Maximum % N/A N/A N/A N/A
% awarded 11% 13% 11% 11%
Special remuneration N/A N/A N/A N/A
Director’s fees N/A N/A N/A N/A
Total (excluding benefits in kind) €380,917 €380,917 €450,000 €450,000
Benefits in kind €3,169 €3,169 €3,865 €3,865
Total €384,086 €384,086 €453,865 €453,865
Gross before tax(a) Remuneration paid in N+1 for year N.
199Registration document 2013 / LE GROUPE LA POSTE
Remuneration and benefits Remuneration and benefits paid to corporate officers 15
15.1.2.3 Directors' fees received by non-executive corporate officers
The members of the Board of Directors receive directors'
fees according to the following principles, adopted by the
General Meeting on 27 April 2011:
the annual budget allocated to directors' fees represents
€230,000;
this amount is divided up by the Board in the following
manner, subject to approval by the relevant ministries:
- €1,300 per attended Board Meeting or specialised
Committee meeting,
- €2,000 per attended meeting for the Chairman of a
Board Committee.
Pursuant to Article 13 of Le Groupe La Poste’s articles of
association and Article 22 of the Democratisation of the
Public Sector Act of 26 July 1983, only directors appointed
by the General Meeting are eligible for directors’ fees.
If the total amount of €230,000 approved by the General
Meeting proved insufficient at end of period in view of the
number of Board or Committee meetings, the directors’
fees will be allocated in proportion to the Board members’
attendance at corporate governance meetings.
For 2013, the directors' fees given out amounted to
€208,400.
TABLE 3: DIRECTORS’ FEES PAID TO DIRECTORS
Amounts due for 2013
Amounts due for 2012
Emmanuel Berthier (a) (*) €5,200 €9,100
Éric Delzant (a) (*) €3,900 N/A
Olivier Bourges (b) (*) €1,300 €23,400
Antoine Saintoyant (b) (*) €24,700 N/A
Sophie Mantel (c) (*) €5,200 N/A
Laurence Franceschini (*) €5,200 €5,200
Guillaume Gaubert (d) (*) €3,900 €11,700
Jean-Michel Hubert (*) €25,000 €18,400
Philippe Lemoine (*) €21,000 €15,700
Françoise Malrieu (*) €21,000 €21,700
Pascal Faure (e) (*) N/A €5,200
Christian Martin (e) (*) €19,500 N/A
Jean-Pierre Jouyet (f) (**) €7,800 €5,200
Antoine Gosset-Grainville (f) (**) N/A €1,300
Augustin de Romanet (f) (**) N/A €1,300
Odile Renaud-Basso (g) (**) €1,300 N/A
Loraine Donnedieu de Vabres-Tranié (g) (**) €35,100 €1,300
Michel Rose (g) (**) N/A €13,700
Franck Silvent (h) (**) 19,700 N/A
Sabine Schimel (h) (**) €8,600 €28,000
Total (€) €208,400 €161,200(*) Directors' fees paid to the French government.
(**) Directors' Fees paid to Caisse des Dépôts et Consignations.
(a) Éric Delzant was appointed on 15 October 2013 to succeed Emmanual Berthier.
(b) Antoine Saintoyant was appointed on 18 June 2013 to succeed Olivier Bourges.
(c) Sophie Mantel was appointed on 15 October 2013 to succeed Jean-Paul Bailly.
(d) Philippe Wahl was appointed on 15 October 2013 to succeed Guillaume Gaubert.
(e) Christian Martin was appointed on 24 January 2013 to succeed Pascal Faure.
(f) Jean-Pierre Jouyet was appointed on 19 July 2012 to succeed Antoine Gosset-Grainville, who had himself succeeded Augustin de Romanet on 7 March 2012.
(g) Odile Renaud-Basso was appointed on 12 December 2013 to succeed Loraine Donnedieu de Vabres-Tranié, who had herself succeeded Michel Rose.
(h) Franck Silvent was appointed on 18 June 2013 to succeed Sabine Schimel.
Registration document 2013 / LE GROUPE LA POSTE200
Remuneration and benefits Total provisions and amounts recognised for pensions and other benefits15
15.1.2.4 Stock options and performance shares
Within Le Groupe La Poste, there is no system for awarding performance shares or stock options to directors or employees.
15.1.2.5 Employment contract, supplementary pension, termination or job transfer allowance, and compensation for non-competition clauses
TABLE 4
Employment contract
Supplementary pension plan
Compensation payable due to severance or a
change of position
Compensation for a non-competition
clause
Yes No Yes No Yes No Yes No
Philippe Wahl,
Chairman and Chief Executive
Officer starting from
26 September 2013 X X X X
Jean-Paul Bailly,
Chairman and Chief Executive
Officer from 1 January 2013
to 25 September 2013 X X X X
15.2 Total provisions and amounts recognised for pensions
and other benefits
The corporate officer and members of the executive Committee do not belong to any complementary pension plan.
201Registration document 2013 / LE GROUPE LA POSTE
16
16.1 Duties of the Board of Directors 202
16.2 Activity of the Board of Directors in 2013 204
16.3 Assessment of the operation of the Board of Directors 204
16.4 Board Committees within the Board of Directors 205
16.5 Internal control 207
16.6 Compliance with the system of corporate governance in force in France 208
Operations of administrative bodies
Registration document 2013 / LE GROUPE LA POSTE202
Operations of administrative bodies Duties of the Board of Directors16
16.1 Duties of the Board of Directors
In accordance with the laws and regulations in force and
with the terms of the business contract, the Board of
Directors sets out La Poste’s general policies and the
business direction of La Poste and its Group (including
subsidiaries in which La Poste directly or indirectly has at
least 50% of the share capital or voting rights).
In particular, the Board of Directors determines the
strategic, economic, financial and technological priorities
of La Poste’s business and monitors their implementation.
Any material Group transaction outside the stated strategy
or that could have a material influence on the Group’s
financial structure or results must be referred to the Board
of Directors.
It may consider any issue concerning the smooth running
of the Company and deliberate and decide on any relevant
matters. It carries out whatever controls and checks it
deems necessary.
Whilst drawing up La Poste’s annual financial statements
and the consolidated financial statements, the Board of
Directors reviews forecasts, the attainment of the targets
set out in the business contract between the French
government and La Poste, and the Group’s strategic
progress. The Chairman informs the Board whether the
stated targets have been met and, if necessary, presents
suitable measures to reduce the actual or expected
shortfall.
The strategic direction of the Group and of each of its
Business Lines—and the multi-annual business plan in
particular—are reviewed at least once a year by the Board
of Directors, which approves the business plan, the Group’s
annual budget, the finance plan and its ability to distribute
dividends, as well as the key goals of the Group’s financial
guidance. Each quarter, the Chairman reports to the Board
of Directors on his monitoring of the Group’s business
activities and key operating performance indicators;
twice a year he reviews a report on the Group’s first-level
subsidiaries. For each of these subsidiaries, the report sets
out the highlights and indicators, in particular the major
acquisitions, disposals, equity investments or financial
transactions that do not require the prior approval of the
Board of Directors.
The Board of Directors is kept regularly informed of the
financial position and any material commitments; it is
also kept informed of major debt and cash management
transactions (excluding La Banque Postale).
The following transactions must be referred to the Board of
Directors for prior approval:
a) any transaction (including any material change thereto)
involving acquisitions, equity investments, asset
disposals (including financial, excluding day-to-day
treasury management and excluding day-to-day asset
and liability management at La Banque Postale), capital
restructuring (in particular mergers, spin-offs or asset
transfers, with the exception of La Poste internal
transactions) for a unit amount of over €30 million, this
threshold including, as the case may be, the price, the
net debt of the target, the amount of any purchase or
subscription guarantee made by La Poste or any of its
subsidiaries and any off-balance sheet commitments;
b) any transaction (including any material change thereto)
involving a business combination, disposal or issue of
equity securities or financial instruments convertible to
equity carried out by La Poste or any of its subsidiaries
(or to which La Poste or any of its subsidiaries is party),
for a unit amount of over €30 million, this threshold
including, as the case may be, the price, the net debt of
the target, the amount of any purchase or subscription
guarantee made by La Poste or any of its subsidiaries
and any off-balance sheet commitment; any strategic
partnership with average annual revenue over the time
frame of its business plan of in excess of €30 million
(including the renewal of any partnership);
c) any investment or divestment transaction (including
any material change thereto) not covered by item b)
above, carried out by La Poste or any of its subsidiaries
(or to which La Poste or any of its subsidiaries is party)
for a unit amount of over €200 million; this threshold
including, as the case may be, any off-balance sheet
commitments;
d) any transaction (including any material change thereto)
involving debt, cash or hedging management (excluding
day-to-day management) carried out by La Poste or any
of its subsidiaries (excluding La Banque Postale) for a
unit amount of over €700 million per transaction;
203Registration document 2013 / LE GROUPE LA POSTE
Operations of administrative bodies Duties of the Board of Directors 16
e) setting a maximum amount of borrowings for the coming
year, when voting on the budget, excluding La Banque
Postale;
f) any transaction (including any material change thereto)
involving the securitisation of financial or commercial
assets carried out by La Poste or any of its subsidiaries
(excluding La Banque Postale) for a unit amount of over
€100 million per transaction;
g) any borrowing by La Banque Postale with a material
impact on the consolidated balance sheet of La Poste
(and in particular where it involves over €1 billion), or
any issue of debt or hybrid share capital by La Banque
Postale qualifying as Tier 1 or Tier 2 share capital
(additional equity capital) for over €500 million;
h) any new direction for the business activities of La Poste
or any of its subsidiaries or a change in its purpose, or
any material transaction reflecting a new direction for
the business or a strategic refocusing of La Poste or any
of its subsidiaries;
i) the dividend policy of La Poste or any of its directly owned
subsidiaries and any change to or development in the
dividend policy;
j) any decision to bring legal (including arbitration),
regulatory or administrative proceedings by La Poste
or any of its subsidiaries or to enter into a settlement
agreement or arbitration agreement with respect to
legal, regulatory or administrative proceedings to which
La Poste or any of its subsidiaries is party, for a unit
amount of over €50 million, it being specified that where
a number of such actions are based on the same or a
related event, this threshold is assessed on the basis of
all relevant actions;
k) setting a maximum amount for the coming year,
when voting on the budget, as well as the provision by
La Poste or any of its subsidiaries of guarantees and
endorsements or any transaction guaranteeing the
commitments of an entity that is not directly or indirectly
wholly-owned by La Poste, excluding transactions by
La Banque Postale with its customers or those involving
customer commitments, for a unit amount of over
€75 million per transaction;
l) any decision to carry out a public offering of financial
instruments issued by La Poste or any of its subsidiaries
excluding programmes already approved as part of the
budget approval by the Board of Directors;
m) any material change or planned material change to
Le Groupe La Poste’s accounting practices.
The Chairman informs the Board of the internal control
procedures established within the Group, significant risks
exposed by the controls implemented by virtue of these
procedures and risk management policies being considered
or carried out. It is also asked to give prior approval to the
internal control report drawn up by the Chairman.
The Board of Directors ensures the fairness and accuracy of
the financial statements and the quality of internal controls
and of the financial information published or made available
to it.
As part of its work, the Board of Directors may call upon
any expert whose skills it considers necessary. The rights
and duties of Board members, as set out in Articles 7 to
13 of the Act of 26 July 1983 on the democratisation of the
public sector, apply to members of the Board of Directors
of La Poste. In particular, and as specified in Article 7 of
the Board’s policies and procedures, Board members
must treat any documents or information that come to
their knowledge in the course of their duties as strictly
confidential. The position of a Board member representing
employees is incompatible with any other position involving
the representation of employee interests within La Poste
or its subsidiaries.
The Board Members’ Code, adopted in December 2004 and
included with each version of the policies and procedures
that the Board of Directors has adopted since, summarises
the rules of conduct with which Board members must
comply.
The policies and procedures of the Board of Directors set
out the manner in which the Board may exercise these
powers; amended at the Board Meeting on 10 February
2011, they incorporate the policies and procedures of
each of the four Board Committees (see below) and the
aforementioned Board Members’ Code. It specifies the
methods for disclosing information to Board members.
Since 2008, this has mainly involved a specially developed
secure electronic data room reserved for members of the
Board of Directors, who are notified whenever a document
becomes available.
To the best of the Company’s knowledge, no service contract
binding members of the Board of Directors to the Company
or any of its subsidiaries provides for the award of benefits
at the end of said contract.
Registration document 2013 / LE GROUPE LA POSTE204
Operations of administrative bodies Activity of the Board of Directors in 201316
16.2 Activity of the Board of Directors in 2013
The Board of Directors meets as often as Company interests
require, and at least six times a year. Furthermore, one
third of the members of the Board of Directors may call a
meeting by setting an agenda if no meeting has been held
for more than two months.
The Board met 11 times in 2013. Board members’ average
attendance at these meetings was 84%.
In particular, the Board of Directors reviewed and authorised
the following in 2013:
the business contract;
the 2014-2016 local postal coverage agreement;
the increase in La Banque Postale’s equity capital;
acquisition projects (La Banque Postale, GeoPost);
the collection of dividends from CNP-Assurances
in shares;
the 2014 budget.
In addition, the Board Members proposed the appointment
of Philippe Wahl as Chairman of the Board of Directors on
1 August.
The Board of Directors also reviewed the corporate balance
sheet, the business progress of first-level subsidiaries, and
the annual report on the management of real estate assets.
Lastly, the Board met for a strategic meeting on 24 January
2013 before adopting a preparatory document for the
strategic plan ("strategic project, financial outlook and
future in-depth projects"). On 28 November 2013, a new
strategic meeting took place in order to examine La Poste’s
digital transition, new services delivered by postmen,
La Banque Postale’s challenges with equity capital, the
future of the Group’s public service missions and the
international development of GeoPost. On 16 January
2014, a last strategic meeting was held before the Board of
Directors adopted the strategic plan on 28 January.
16.3 Assessment of the operation of the Board of Directors
Once a year since 2006, the Board of Directors has devoted
a part of its agenda to assessing its internal practices, with
particular regard to its policies and procedures and to any
improvements that could be made. From 2006 to 2009, this
annual appraisal was led by Jean-Michel Hubert (member
of the Board, individual with qualified status); the process is
now led by the Remuneration and Governance Committee
and its Chairman, who presents a summary to the Board
and suggests areas for improvement. La Poste has also
decided to carry out this assessment once every three years
with the help of an external firm.
The assessment of the Board and its Committees’
operations for 2012 was performed through interviews led
by the firm Leaders Trust International, chosen during a
consultation after which three candidates were auditioned.
The in-depth interviews led with all Board members
concerned were compiled in a summary document, which
was made available to the Board of Directors on 22 February
for the meeting on 28 February 2013. The agenda included
a presentation by Jean-Philippe Saint-Geours (Senior
partner of Leaders Trust International) and Philippe
Lemoine (Chairman of the Remuneration and Governance
Committee), followed by an exchange with all participants
of this meeting.
This assessment revealed the overall satisfaction of Board
members as well as their assessment of progress made
in terms of the content of files and availability time line for
information on risk management and explanation of the
strategy (particularly thanks to strategic meetings).
Most Board members wanted to see continued progress
regarding information on operational risks, creating a
system for following up on decisions made, and information
concerning comparative performances. To do this, avenues
for reflection were provided to the Board; they must be able
to respond to these expectations, while ensuring that the
Board of Directors’ pace and progress of work remains
smooth by bolstering the work of the Board Committees,
in particular.
In early 2014, the assessment of the Board’s operations
for 2013 was launched with the distribution of a detailed
questionnaire to each Board member, which will allow
Board members to express their opinions on the changes
encouraged following the Leaders Trust International firm’s
work.
205Registration document 2013 / LE GROUPE LA POSTE
Operations of administrative bodies Board Committees within the Board of Directors 16
16.4 Board Committees within the Board of Directors
To fulfil its duties, the Board of Directors has set up four
Board Committees tasked with examining and preparing
certain projects before they are presented at plenary
sessions, either adding them to the agenda or mentioning
them in the report on work carried out by the Chairman.
The government representative and the head of the French
government’s economic and financial control unit attend the
meetings of each Committee.
The Committees are as follows: Audit Committee (set up in
2001), Strategy and Investment Committee (set up in 2004),
Quality and Sustainable Development Committee (set up in
2004 as the Customer Service Committee, later renamed
in 2007) and the Remuneration and Governance Committee
(set up in 2010). Furthermore, an ad hoc commission comes
together to prepare for the Board of Directors Meetings two
days before they take place.
16.4.1 Audit Committee
The Audit Committee is composed of: Mr Silvent, Chairman
of the Committee, Mr Lersy, Ms Mantel, Ms Renaud-Basso
and Mr Saintoyant.
The role of the Audit Committee is to assist the Board
of Directors in its areas of expertise, i.e. for Le Groupe
La Poste, analysing the accounts, the main financial
information, major risk mapping, the management policy
applied to these risks and internal control procedures.
With a view to preparing the work of the Board of Directors
and making any useful recommendations, the Committee:
checks the relevance and consistency of the accounting
standards and practices applied by La Poste and the
Group in preparing the parent company and consolidated
financial statements, as well as the appropriate
recognition of significant financial and accounting
transactions carried out or to be carried out by La Poste
and the Group; studies any proposal for significant
changes to these standards and practices before they
are applied;
ensures the separate and consolidated financial
information produced by La Poste is true and fair; verifies
that internal data collection and control procedures are
established and followed to guarantee this truth and
fairness;
reviews La Poste’s financial disclosure policy and the
main aspects of this disclosure;
carries out a prior review of accounting and financial
documents to be submitted to the Board of Directors,
including the annual and interim financial statements,
financial statements specifically drawn up for the
purposes of a given transaction, management reports
and their notes;
with the help of the Finance Department, establishes
the procedure for choosing La Poste’s Statutory Auditors
after putting out an invitation to tender and making a
recommendation to the La Poste Board of Directors on
the choice of said auditors; debates the involvement
of the appointed Statutory Auditors and the budget
allocated to their work; ensures the Statutory Auditors
are independent;
periodically reviews the Statutory Auditors’ report and
their recommendations;
reviews the Chairman’s report on internal control
procedures;
assesses the effectiveness of internal control and risk
management systems and, to this end, carries out
an annual review of the mapping of all kinds of risks
to which the Group is exposed through its operating
activities, as well as the processes and action plans
introduced to identify and control these risks; reviews
the report on the work of the head office internal auditors
and staff responsible for internal audit within La Poste
and the Group for the previous year, and gives its opinion
on the work programme for the year ahead;
carries out a periodic review of major unresolved
disputes and any other issues of a financial, accounting,
legal or any other nature that could generate risks or
threats;
reviews the nature and scope of significant off-balance
sheet commitments;
makes any recommendations to the Board of Directors
on the matters above;
more generally, reports any significant issues that could
require the Board’s special attention to the Board of
Directors.
The Audit Committee met five times in 2013; the average
attendance of Board members was 84%.
During 2013, in addition to recurring subjects such as
reviewing the annual and interim financial statements, risk
mapping and scheduling audits, the Committee notably
reviewed the internal control and risk control processes of
Mail and La Banque Postale, as well as its revenue model
and allocation of equity capital.
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Operations of administrative bodies Board Committees within the Board of Directors16
16.4.2 Strategy and Investment Committee
The Strategy and Investment Committee is made up
of: Ms Malrieu, Chairperson, Mr Blanchot, Mr Dupin,
Ms Liboutet , Mr Pesnel , Ms Renaud-Basso and
Mr Saintoyant and Mr Silvent.
With a view to preparing the work of the Board of Directors
and offering any useful opinion or recommendations, the
Committee:
analyses the strategic growth drivers of La Poste and its
Group in France and abroad;
studies proposed strategic agreements and monitors
partnerships;
studies planned asset acquisitions or disposals within
the Group, plans to create subsidiaries or buy and sell
equity investments for amounts exceeding €30 million;
reviews the multi-annual business plan;
oversees the main items of the business contract signed
with the French government.
The Strategy and Investment Committee met four times in
2013; the average attendance of Board members was 84%.
In 2013, the Committee essentially worked on the Group’s
strategic project, the business contract, the change in
La Banque Postale’s equity capital, the international
development of GeoPost and acquisition projects.
16.4.3 Quality and Sustainable Development Committee
The Quality and Sustainable Development Committee is
made up of: Mr Hubert, Chairman, Ms Derouard, Mr Martin,
Ms Féola, Ms Renaud-Basso, Mr Silvent and Ms Zarine.
The Committee helps the Board of Directors to analyse
the quality of services that Le Groupe La Poste provides
to its customers, as well as sustainable development at
Le Groupe La Poste.
The Committee’s role is to prepare the Board of Directors’
work and make any useful recommendations on any issue
concerning the quality of relations between Le Groupe
La Poste and customers, as well as on sustainable
development, especially regarding the following:
surveying customer satisfaction with Le Groupe
La Poste;
analysing the quality of service provided to customers of
Le Groupe La Poste;
reviewing best practices in the services provided to
customers of Le Groupe La Poste;
reviewing best practices in terms of sustainable
development and corporate social responsibility.
The Board of Directors may also ask the Committee to
carry out any other work relating to quality and sustainable
development; the Committee may even suggest that the
Board consult it on any specific issue that it considers
necessary or relevant. Following deliberation on 30 May
2013, the Board of Directors added well-being at work at
La Poste and best practices to the Committee’s area of
responsibility.
The Quality and Sustainable Development Committee
met six times in 2013; the average attendance of Board
members was 79%.
During 2013, the Committee examined the service-oriented
attitude, the systems to measure quality delivered and
perceived quality, the implementation of the agreement
on Quality of life at work, the CSR strategy and La Poste’s
ethics programme.
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Operations of administrative bodies Internal control 16
16.4.4 Remuneration and Governance Committee
The Remuneration and Governance Committee is composed
of: Mr Lemoine, Chairman, Mr Jouyet, Ms Renaud-Basso
and Mr Saintoyant.
With a view to preparing the work of the Board of Directors,
the Committee:
issues recommendations on the remuneration of
La Poste’s corporate officers;
formulates an opinion on any proposal pertaining to
the general principles of the remuneration policy;
gives an opinion on any planned capital increase
reserved for employees or bonus share awards pursuant
to Articles 32 and 33 of Act 90-568 of 2 July 1990 as
amended, relating to the organization of the public
service provided by La Poste and France Télécom;
coordinates the annual assessment of the Board of
Directors.
The Chairman of the Board of Directors informs the
Committee of the appointment, remuneration and planned
replacement of the executives of La Poste and its main
subsidiaries. Where appropriate, the Committee passes on
its observations to the Board of Directors.
The Remuneration and Governance Committee met four
times in 2013; the average attendance of Board members
was 75%.
During 2013, the Committee primarily devoted itself to its
recurrent assignments (remuneration of the Chairman and
Chief Executive Officer, etc.).
16.5 Internal control
16.5.1 Report of the Chairman of the Board of Directors
In accordance with the provisions of Article L. 225-37 of
the French Commercial Code, the Chairman of the Board
of Directors must produce a report on the conditions
of preparing and organising the Board’s work, and on
the Company’s internal control and risk management
procedures, and attach this to the Board of Directors'
management report.
This report is included in appendix 1.
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Operations of administrative bodies Compliance with the system of corporate governance in force in France16
16.5.2 Statutory Auditors’ report prepared in accordance with the final paragraph of Article L. 225-235 of the French Commercial Code, on the report by the Chairman of the Board of Directors of La Poste, regarding internal control and risk management procedures
This report is included in appendix 2.
16.6 Compliance with the system of corporate governance
in force in France
At its meeting on 10 March 2011, the La Poste Board of
Directors decided to refer to the provisions of the Code
of Corporate Governance drawn up by Afep-Medef for
purposes of preparing the report mentioned in Article
L. 225-37 of the French Commercial Code. Said Code of
Corporate Governance is compatible with the legislative and
regulatory provisions governing La Poste.
This means that some of the legislative provisions
arising from Act No.83-675 of 26 July 1983 regarding
the democratization of the public sector, which apply to
La Poste, together with the provisions of Act No.90-568 of
2 July 1990 regarding the organization of La Poste’s public
service Télécom limit the option to apply the Corporate
Governance Code drawn up by the Afep and the Medef.
These provisions primarily concern the composition of
the Board of Directors, which is specified by law, and can
therefore not meet the composition (categories of directors)
or independence requirements set down in the Afep-Medef
Corporate Governance Code, as revised in June 2013.
The same applies where the Audit Committee set up by
La Poste is concerned. However, the Company believes
that each of the directors has the relevant skills and
professional experience to perform their duties and notes
that in accordance with Point 7 of the Code, employees are
represented on the Board of Directors, and make up one
third of the Board members, pursuant to the provisions of
Article 10 of the Act of 2 July 1990.
Moreover, in the case of:
the roles of Chairman of the Board of Directors and
Managing Director: Article 11 of the Act of 2 July 1990
and referred to in Article 14 of the articles of association
states that the functions of Chairman and Managing
Director are combined;
the methods for appointing and dismissing the Chairman
and Chief Executive Officer: Article 10 of the law of
26 July 1983 referred to in Article 14 of the articles of
association states that the Chairman and Managing
Director is appointed and removed by decree;
setting the remuneration for the Chairman and Chief
Executive Officer: the decree dated 9 August 1953 states
that the decision comes from the relevant ministers, and
the decree dated 26 July 2012 defines a ceiling;
membership of La Poste’s Board of Directors: this is
set at five years, and all the members of the Board of
Directors are reappointed when their term of office
expires; the procedures are specified in Article 11 of the
Act of 26 July 1983;
directors cannot own shares in a personal capacity, as
Act No.2010-123 of 9 February 2010 has provided that
La Poste’s share capital shall be held by the French
government or by other legal entities governed by public
law, except for the portion of the share capital that may
be held as employee shareholdings. Moreover, the Act of
26 July 1983 (Articles 11 and 12) exempts Government
representatives and employee representatives from
being required to hold shares in companies of which they
are directors where such a holding is required;
the Committee responsible for selecting or appointing
directors and executive corporate officers: no such
Committee has been set up as the terms and conditions
for selecting and appointing directors are determined
in law.
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17
Introduction 210
17.1 Change in staff numbers 210
17.2 A responsible employment policy 210
17.3 Professional development, training and promotion policy 211
17.4 Diversity and equal opportunity 215
17.5 Health and safety—Quality of life at work 218
17.6 Players in HR support 219
17.7 General remuneration policy 220
17.8 Staff policy 222
17.9 Employee shareholding 227
17.10 Summary of employee information 227
Employees
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Employees Introduction17
Introduction
Le Groupe La Poste has chosen to grow responsibly,
combining improved performance with an exemplary
attitude in social, societal and environmental issues. The
Group’s responsible development involves a strong social
model based on offering quality jobs, equal opportunities,
diversity and support for employees’ career plans. This
staff policy enables the Company to keep its promise of
supporting employees’ career development and securing
the loyalty of those who join by providing opportunities for
promotion.
Following the Major Dialogue in 2012, during which more
than 125,000 postal workers expressed their opinions,
eight social transition projects were recommended:
social dialogue, management, organization of work and
change management, health and safety at work, social
model, reclassification, HR function, workforce and skills
management planning.
La Poste entered into comprehensive social negotiations,
which led to a framework agreement on Quality of
life at work that was signed on 22 January 2013. This
founding agreement on Quality of life at work, which is
described in more detail below in this Chapter, provides
for immediate measures, sets down the company's goals
and commitments and organizes an additional negotiation
program on the different projects which began in 2013.
17.1 Change in Group staff numbers
Change in Group staff numbers in full-time staff equivalents/annum
AVERAGE NUMBER OF EMPLOYEES (FULL-TIME EMPLOYEE EQUIVALENTS/ANNUM)
2013 2012
Group 266,369 266,618
82.2%
La Poste
parent company
(France)
French
and foreign
subsidiaries
17.8%
Foreign
subsidiaries
8.7%
Frenchsubsidiaries9.1%
17.2 A responsible employment policy
La Poste leads a responsible employment policy despite a
difficult economic context and environment. The decrease
in mail volumes and the decline in visits to post offices are
both factors driving the Group to control staff numbers,
but La Poste remains one of the leading players in the
employment market in France.
This policy is primarily reflected by a change in the
headcount which is solely due to the difference between
natural departures and hires, by an employment policy that
promotes permanent contracts for employees; employees
on these contracts accounted for 94.6% of La Poste parent
company employees in 2013, and by a dynamic hiring policy
that actively supports the integration of young people, and
encourages social inclusion.
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Employees Professional development, training and promotion policy 17
La Poste is convinced that the quality of recruitment
processes, which recognize social diversity and respect equal
opportunities, contributes to the Company’s responsible
development. La Poste is a signatory of the Apprenticeship
Charter (2005), the Charter for Diversity (2006), the National
commitment to local youth employment (2008), and the
Corporations and Neighborhoods Charter (2013).
La Poste gives each candidate every opportunity to succeed,
choosing solely on the basis of skills, qualifications,
experience and motivation, from the recruitment stage on.
The Group implements an open recruitment policy that
reflects the Group’s commitment to diversity.
La Poste promotes diversity in its recruitment in several
ways (e.g. anonymous CVs, recruitment in deprived urban
areas, vocational training contracts, apprenticeship
contracts, simulation-based recruitment, etc.).
La Poste has committed to recruiting 15,000 employees on
permanent contracts during the period between 2012 and
2014. After the 5,211 permanent contract hires made in 2012,
the company recruited 5,298 new employees on permanent
contracts in 2013, thereby continuing on the path towards
meeting its commitment. These recruitments present an
opportunity to integrate employees who previously worked
under temporary contracts at La Poste. Within this context,
the company has committed to prioritizing the review of any
application from an individual who has previously held a
position at La Poste when recruiting staff under permanent
contracts for the same position, as part of the Quality of llife
at work agreement, and to making 3,000 permanent contract
hires among employees on temporary contracts during the
period between 2013 and 2015. In 2013, 1,390 people who
had already worked at La Poste on temporary contracts were
recruited on a permanent basis.
NUMBER OF PERMANENT RECRUITS
At year end 2013 2012
Permanent contract 5,298 5,211
On 30 October 2012, La Poste signed an agreement with the
French government to recruit 1,000 contracts for the future
(emplois d'avenir) by 31 December 2014. This commitment
will allow 1,000 young people with few or no qualifications to
receive skills or known qualifications and gain professional
experience. La Poste intends to offer these young people
permanent contracts once they satisfy the employment
criteria on which they were trained under temporary
contracts. At 31 December 2013, 626 young people were
employed at La Poste under "emploi d'avenir" contracts.
Women accounted for 49.1% of new hires in 2013, while people
living in deprived or critical urban areas accounted for 15.2%,
and people aged 45 and over for 7.4%. La Poste has hired 118
disabled people under permanent contracts, in accordance
with the commitment made in the staff agreement for the
benefit of people with disabilities signed on 8 March 2012.
Lastly, in 2013, and for the fifth consecutive year, the CRF
Institute awarded La Poste its Top Employer certification.
La Poste has a low staff turnover rate (3.25% in 2013 and
2.82% in 2012).
17.3 Professional development, training and promotion
policy
Skills development for its postal workers is central to
La Poste's human resources policy.
In 2013, the Quality of life at work agreement rolled out
several new measures and opened specific negotiation on
professional development in order to cultivate workforce
and skills management planning and to strengthen
professional development policies.
17.3.1 Professional development
La Poste promotes professional development that respects
individuals and promotes diversity in professional projects,
the ultimate goals being:
to respond to the employees' career advancement goals
in a diverse range of areas: projects may involve internal
or geographic mobility, or a change in positions, such as
moving to the public sector or even creating a business;
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Employees Professional development, training and promotion policy17
• to secure the loyalty of La Poste employees by offering
more possibilities for career development;
• to support the Company’s modernization by allowing
skills to be mobilized wherever and whenever they are
needed;
• to consolidate the introduction of skills-based HR
management with progress made in training and
promotion.
In October 2013, La Poste organized its first Career
Development Week, during which postal workers were able
to discover all of the Group’s business activities and develop
their career path through more than 800 demonstrations,
conferences, meetings and workshops throughout the
territory and in every Business Line.
La Banque Postale has chosen to encourage professional
development in order to support new jobs with good
prospects, like 100% remote banking advisers, account
managers for companies and local authorities, and
specialist banking positions (risk, control, and fraud).
17.3.1.1 Internal mobility
La Poste would like to develop career advancement
opportunities within the Group.
To this end, in 2013, a catalogue was developed,
grouping together all positions performed in the
company, subsidiaries and job families in common
with all of La Poste's operations. This more simple and
comprehensible shared reference guide will help build
more numerous and varied career paths at La Poste on a
company-wide scale. It will allow the company to develop
and share workforce and skills management planning
throughout all of the company's Business Lines.
In terms of internal mobility, La Poste allows company
employees to actively participate in their career
development by creating means for them to take initiative:
rules regarding internal mobility, a job market accessible to
all employees through Intranet or Internet, development of
a mobility advisers network or career advancement advisers
divided up between the company's different Business Lines.
A new stage was reached in 2013 with the signing of the
Quality of Life at Work Agreement, including the extension
of La Poste's jobs fair to all of its French subsidiaries.
Lastly, La Poste continued developing cross-career paths
between Business Lines and professional fields. As a result,
in 2013, 613 employees from the Mail and Parcels Business
Lines benefited from a skills enhancement scheme, by
alternating between periods in the post offices and periods
at the training facility, which has enabled them to become
counter clerks within the post office network.
17.3.1.2 HR support
In 2013, the company developed its support scheme aimed
at helping postal workers to build and implement their
career path. La Poste has introduced a career interview
with a specialized HR manager (mobility advisor, career
development advisor, or career advancement advisor, etc.)
for any postal worker who requests one, regardless of
their status and level, provided they have been in the same
position or role for over five years. In addition, since 2013,
new managers have received specific training aimed at
helping them support every one of their employees in their
career development plan.
17.3.1.3 External mobility
Public sector mobility
In response to postal workers’ requests for mobility towards
one of the three public sectors (French government, local
government and hospitals), in 2008, La Poste introduced
a new legal process of secondment, then transfer of state
employees.
This exceptional measure common to the three public
sectors was introduced by Act No.2007-148 of 2 February
2007, and then extended until 31 December 2016 by Act
No.2012-347.
Within this context, La Poste and the Centre national de la
fonction publique territoriale (National Centre of Territorial
Public Sector—CNFPT) established a training partnership
allowing postal workers who would like to move to the
regional public sector to receive a specific training path
within the CNFPT, or to individually register for training or
competition preparation available in the CNFPT catalogue.
La Poste helped 203 postal workers transfer to the public
sector in 2013. 96.2% stated that they were satisfied or very
satisfied with their career path.
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Employees Professional development, training and promotion policy 17
Business creation
La Poste leads an active policy to support entrepreneurial
projects expressed by its employees, organized around
five principles: initiative and voluntary service of the
entrepreneurial postal worker, equal treatment, access to
information and transparency, confidentiality of the process,
and individualized support.
The creation or takeover of a business activity is therefore
subject to specific measures of support: a toll-free number
for information, an internal network of specialized Advisers,
access to training and planning working hours, financial
aid, post-creation follow-up and a right to return to the
company.
In 2013, 130 postal workers with plans to start or take over a
business succeeded in their plans, and 61 received financial
assistance from the company.
17.3.2 Training
2013 2012
Training expenditure as a percentage of payroll 3.63% 3.60%
Number of employees trained at least once 163,822 NA
Number of training days 731,543 590,000
17.3.2.1 Stakes of training
Against a backdrop of economic and social change, the
La Poste’s strategic plan has high ambitions in terms of
business development, quality of customer service and
Quality of life at work.
Therefore, training is more than ever seen as an investment
for the future, an indicator of economic and social
performance. The ability to identify the skills needed to
foresee development and meet the demands of the market
and customers is an essential part of being competitive.
Beyond the economic dimension, training must also meet
postal workers' expectations in terms of their individual
recognition and professional development.
Since 2013, this policy has been reflected by a sharp
increase in the access to training: nearly 80% of postal
workers attended at least one training course during the
year. This commitment must allow each employee to obtain
and maintain the skills necessary to accomplish their job
and career path.
2013 also provided an opportunity to finalize the setting up
of a management institute intended to train and develop
the Group's executives, and make them more open to
the outside world. This institute is also responsible for
management research.
Thus, Le Groupe La Poste's 2013 training project falls under
a dynamic policy in developing postal workers' skills.
Special priority was given to the following objectives:
supporting projects that promote secure career paths;
guaranteeing employees’ professional development by
supporting their internal or external career paths;
actively recognizing and valuing skills and qualifications,
by ensuring that employees maintain basic knowledge
and skills, and encouraging access to programs that help
them obtain qualifications and certificates;
being particularly vigilant with certain sensitive people
through monitoring and support: seniors, and people
with disabilities, etc.;
encouraging access to training for each postal worker;
developing the mentoring system, which forms in
particular one of the keys of success of the youth
integration policy and of the implementation of contrats
de génération (cross-generation contracts). As a result,
it is necessary to introduce support and training that is
appropriate for the mentors;
supporting the development of managerial skills as
part of the Business Line training process, or programs
created by the Institute of Management, and helping
professionalize the employees in the HR area.
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Employees Professional development, training and promotion policy17
La Banque Postale offered a risk management and Net
Banking Income training program to all of the managers
in its network in 2013. At the same time, it rolled out a
managerial development program for its 2,300 managers
in June 2013. A new program has since been relaunched,
based on the themes of cooperat ion, strategic
communications and leadership. It is available to all bank
managers, financial services, and subsidiaries of La Banque
Postale.
17.3.2.2 An active part-time education policy
La Poste is convinced that part-time education is an
appropriate and effective way to prepare for professional
life and integration into the workplace, and has been firmly
committed to a policy aimed at integrating young people
into the workplace by developing part-time employment
(apprenticeship contracts and vocational training contracts)
for a number of years.
There are two aspects of Le Groupe La Poste’s part-time
education policy:
training and integration in the workplace, giving young
people the chance to obtain a diploma and have their first
work experience, which improves their employability;
pre-recruitment, especially for “core business” jobs
(postmen and financial Advisers in particular), taking
into account recruitment needs.
The programs offered by La Poste allow participants to
receive diplomas or professional accreditation, from CAP
(Professional Ability Certificate) qualification to a master's.
In concrete terms, this policy resulted in the Company
deciding to employ at least 7,500 young people on work-
study programs during the 2013-2015 period. Despite
the adverse economic environment, 5,106 young people
benefited from an apprenticeship or vocational training
contract in 2013.
17.3.3 Promotion
17.3.3.1 Promotion
In keeping with a human resources management approach
that is focused on skills development, La Poste has put in
place three channels for promotion:
recognition of professional achievement to advance one
classification level;
recognition of professional potential to advance several
classification levels;
recognition of professional experience to advance one
classification level based on merit and seniority.
12,873 postal workers were promoted via one of these three
promotion channels in 2013. This represents a promotion
rate of 5.8%. 47,390 postal workers have been promoted
over the past three years.
17.3.3.2 Qualification-based promotion
As part of La Poste’s tradition of employee promotion, the
qualification-based promotion system offers employees who
have not been able to study at university, despite having the
potential, the possibility of being promoted to operational
management level through a part-time education program.
This training is based on an 18-month block release course
that includes classes at a management school to obtain a
Master’s degree, and apprenticeship experience in the role
of an operational manager, in the presence of a mentor.
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Employees Diversity and equal opportunity 17
17.4 Diversity and equal opportunity
La Poste is a signatory of the Corporations and
Neighbourhoods Charter for 2013/2014.
At the end of 2010, the Chairman of Le Groupe La Poste
signed the commitment proposed by the United Nations
Global Compact in order to promote gender equality, which
is known as Women’s Empowerment Principles—Equality
means business.
At the Department of Human Resources and Labour
Relations, a new Diversity and Equal Opportunities
Department has been responsible for managing La Poste’s
diversity policy from an HR standpoint since 2011, including
the disability mission at the national level, and organizing
an inter-Business Line Steering Committee, and diversity
officers for local organizations.
Initiatives regarding diversity and equal opportunities have
consistently been a part of La Poste's strategic plans.
They aim in particular to:
implement the commitments of the gender equality
agreement;
improve handling un-employability and manage the
disabled policy under a fifth agreement signed with
unions on 8 March 2012;
manage and monitor age-management actions;
ensure compliance with legal requirements and manage
discrimination risk.
A national level action plan is implemented each year and
action plans are drawn up by the management of each
Business Line. The progress of action plans is regularly
reported to the authorities concerned. In each of the
Business Lines as well as locally, diversity officers support
the implementation of the diversity policy.
La Poste has been awarded the Diversity Label for all its
business activities. This award was granted to the company
again in February 2013 for a four-year period.
17.4.1 A constant effort to ensure gender equality in the workplace
A process that began in 2005 with the signing of a
framework agreement, and continued in 2006 with the
award of the Equality Label—renewed every 18 months
since then—has led the managements of each Business
Line to define their own action plans specific to their
Business Lines.
The agreement signed on 11 April 2011 resembles the
guiding principles and the key commitments of the initial
agreement in 2005 and is accompanied by a priority
action plan:
strengthen diversity in the Business Lines, particularly
by updating communication tools;
undertake an in-depth study of remuneration inequality
that may persist between women and men;
facilitate parenting in professional life (improving
childcare, communication on rights related to
parenthood, parent survey);
train and raise awareness with all postal workers to
combat gender stereotypes.
Dedicated resources support the implementation of the agreement and indicators regularly evaluate progress.
2013 2012
Percentage of women in the total headcount 51.5% 50.6%
Proportion of women on the Executive Committee of La Poste 27.3% 9%
Percentage of senior executives who are women 28.7% 12.2%
Percentage of managerial staff who are women 46.3% 41.6%
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Employees Diversity and equal opportunity17
The comparison report, which has been published since
2003, is shared with unions within the Commission that
monitors the agreement, the comité technique paritaire
(Joint Technical Committee), and each year it is presented
to the Board of Directors to review and issue an opinion, in
accordance with obligations required by law.
Lastly, in April 2013, La Poste committed to implement
actions specifically in the following areas, by way of an
agreement with the Ministry of Women's Rights:
professional equality in Small and Medium-sized
businesses;
the development of diversity in sectors and functions;
combating loss from employment among people on
maternity or paternity leave;
developing roles for women on the Group and Business
Line management bodies.
17.4.2 Measures implemented to help disabled people and those unfit for work
On 8 March 2012,La Poste management and four unions,
CFDT, CFTC, CGC/UNSA and FO signed a new agreement
in favour of employing disabled people.
On 22 May 2012, this agreement, the fifth signed on this
theme, received approval from the Greater Paris regional
department of companies, competition, consumption,
labour and employment.
Through this agreement, equipped with a €56 million budget
over three years, La Poste is continuing and strengthening
its commitments in favour of employing disabled people in
all areas.
The agreement, which covers the 2012-2014 period, involves
an action plan which notably aims to:
hire a minimum of 480 disabled people for any type of
position (213 people hired in 2012 and 187 in 2013) and
welcome 300 interns with disabilities;
maintain employment of disabled personnel and improve
their Quality of life at work;
guarantee professional advancement of disabled people
through easier access to training and promotions;
continue and strengthen partnerships with different
specialized organizations in training and supporting
disabled workers.
The agreement is subject to action plans within the different
La Poste Business Lines in order to take into consideration
their specific features and facilitate its implementation.
La Poste also implemented a network of trained and
professional disability officers throughout France, which
has been active since late 2012.
In 2013, more than 6% of employees of La Poste parent
company receive a job security guarantee, accompanied
with adjustments in their workstations, where necessary,
either as disabled workers or as people with medical
restrictions.
(€ million) 2013 2012
Amount of purchases from sectors that work with the disabled 11.03 8.63
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Employees Diversity and equal opportunity 17
17.4.3 Cross-generation agreement
The provisions of the age management action plan
decided on in 2010 were extended in 2013. At the same
time La Poste conducted negotiations with trade union
organizations concerning the policy of integrating young
people into the workplace (permanent contracts and part-
time hires), maintaining senior workers in employment
and passing on skills and knowledge. These negotiations
resulted in the signing of a Cross-generational Agreement
between La Poste and five trade union organizations on
22 January 2014.
2013 2012
Percentage of workforce aged 55 or over (La Poste parent company) 23.5% 21.6%
At Chronopost, a triennial contrat de génération was signed
on 22 October 2013 by all representative unions. It states
that, in addition to recruiting people under 26 years old, the
percentage of permanent contract employees aged 50 and
above must reach a minimum of 15% of employees by the
end of the agreement period.
17.4.4 Anti-discrimination action
The various agreements reached with social partners
included actions to raise postal workers’ awareness of the
most common stereotypes likely to result in discriminatory
practices. Two communication tools accompanied by a
guide were made available to all La Poste managers for
a deployment carried out with their teams from 2011 to
2013, the second tool focused more specifically on gender
stereotypes.
In 2013, La Poste chose to contribute to intercompany
studies, such as Work relationships between men and
women, carried out by the Conseil supérieur de l’égalité
professionnelle (French High Council for Professional
Equality), the conclusions of these studies were made
public in December 2013.
The reference guide on discrimination risk presenting
the state of the law and jurisprudence as well as
practical cases, was updated in 2013 for legal experts
and the company's managers of human resources. It is
supplemented with regular reports of news on the subject
of discrimination.
2013 2012
Percentage of permanent contract recruitments in deprived urban areas
or under urban social cohesion contracts 15.2% 14.5%
17.4.5 The publication of a diversity report
La Poste has made it a priority to ensure that specific legal
provisions in favour of certain communities or situations are
respected and that close attention is paid to the individuals
concerned. The following categories of people are reviewed
each year, while corrective measures are taken whenever
an unusual situation is noted in terms of recruitment,
remuneration, or access to promotion or training:
women;
beneficiaries of the obligation to employ disabled
workers;
people over 45;
people under 26;
individuals living in deprived urban areas;
individuals born in French overseas departments and
territories;
foreign workers.
This report is discussed with trade union organizations.
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17Employees Health and safety—Quality of life at work
For 2013, the report was made more general, in order
to better show La Poste's successes and areas for
improvement regarding diversity, and to allow for it to be
distributed to the largest audience possible, both inside and
outside of the company.
17.5 Health and safety—Quality of life at work
17.5.1 Immediate measures specified by the Quality of Life at Work Agreement
The Quality of life at work agreement signed on 22 January
2013 defined several immediate measures which help to
better preserve the health and safety of postal workers,
among which are:
strengthening the monitoring of postal workers'
occupational health:
La Poste has committed that, starting in 2013, priority
check-ups would be proposed to all postal workers who
had not had one recently, so that by the end of 2013, all
postal workers would have been called in for a check-up
within the last two years.
This measure has been carried out notably by
reinforcing medical teams: at the end of 2013 La Poste
had 161 occupational doctors 158 in 2012, 152 in 2011,
147 occupational nurses (132 in 2012, 105 in 2011) and
106 secretaries (106 in 2012, 93 in 2011);
changes in the missions of La Poste and its Business
Lines' National Commissions on Health and Safety
at Work:
La Poste and its Business Lines' National Commissions
on Health and Safety at Work meet regularly throughout
the year. These commissions, which have existed
since early 2012, changed in 2013 to an authoritative
body on information, research and discussions of
matters concerning hygiene, safety, health and working
conditions common to all entities within their scope. In
Financial Services, a major project in the Operations
Department, digitization, was also presented and
analyzed by this Commission.
17.5.2 Continued and increasing efforts
La Poste continued and stepped up its efforts in prevention,
with particular attention paid to preventing accidents
at work, preventing psychosocial risks and preventing
physical duress. All actions led by the company in 2013 were
included in a written summary presented in the National
Commissions on Health and Safety at Work on 4 December
2013.
In terms of preventing psycho-social risks:
new training programs were rolled out in the
Business Lines for managers on the fundamentals of
management: team motivation, daily communications,
assessment, cooperation, change management,
personalized management.
as part of its Quality of Life at Work Agreement, La Poste
is committed to complying with joint rules that apply to
all parties in the social dialogue. These rules aim to
clarify the roles and undertakings of each party, and the
role of the authorities, in order to achieve a high-quality
social dialogue on the issue of psycho-social risk in all
circumstances.
in order to better take into consideration work/life
balance in work organizations:
- an agreement on the implementation of teleworking
at La Poste was signed on 26 June;
- experiments are in progress as part of the Quality
of life at work agreement, with new organizations
granting two rest days during the week for postal
workers working six out of seven days.
where listening to and supporting people who are
experiencing difficulties is concerned, La Poste
introduced a telephone listening and psychological
support scheme, with the assistance of experienced
psychologists; postal workers may call anonymously
and confidentially 24/7. This scheme will supplement
the measures taken by managers, human resources,
occupational health services, social services and staff
representatives.
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Employees Players in HR support 17
Where preventing workplace accidents and musculo-
skeletal disorders is concerned, La Poste is taking action
at several levels:
Studies have been conducted by the network of
occupational physicians to identify the jobs at risk and
risk factors of musculoskeletal disorders. The results
of these studies have been distributed to managers and
specialized areas along with practical advice.
The method for analyzing the causes of workplace
accidents has been adjusted.
New work equipment has been tested and rolled out:
new sorting units that can adjusted to the configuration
of mail rounds, and where the height can be adjusted,
so as to take employees’ height into consideration, new
sorting units adapted for people with restricted delivery
abilities, new sorting units for financial services, the
use of conveyor belts at ColiPoste offices, in order to
handle the arrival of bulk parcels, new vehicles that allow
standing, and are fitted so as to make getting in and out
of the vehicle easier, as well as storing parcels in the
appropriate delivery order and no longer stacking them
on the ground.
New training and new educational tools have been
rolled out for postal workers: new training on preventing
manual handling risks and musculo-skeletal disorders
that is appropriate for the activities performed in post
offices, ColiPoste offices and platforms, in Financial
Services ("My back, my joints" training); new educational
tools for protecting health that are appropriate for Mail
activities, such as two-wheel delivery, working on display
screens, or working on sorting units.
These actions have produced concrete results: drop in
La Poste injury frequency rates (from 26.42 in 2012 to
25.2 in 2013) and the severity of accidents at work (from
1.3 in 2012 to 1.27 in 2013 (1)).
17.5.3 Beginning negotiations on health and safety at work
Negotiations have begun on the following themes:
the assessment and prevention processes implemented
in facilities;
the prevention of psycho-social risk;
the prevention of physical duress;
identifying, handling and preventing situations linked to
psychological and sexual harassment;
players in prevention: occupational health services,
prevention division, and social workers;
staff representative authorities: CHSCT and National
Commissions on Health and Safety at Work.
17.6 Players in HR support
17.6.1 Creation of 1,100 local HR managers
The creation of the local HR manager position is a
significant component of La Poste's development policy
regarding Quality of life at work. It is included in particular
in the framework agreement on Quality of life at work which
was signed on 22 January 2013.
Tasks of the local HR position cover two major dimensions:
local HR management directed towards operational
managers to help them facilitate social dialogue and
change management at local level. This requires strong
technical skills;
local HR relationship more oriented towards people,
which is specifically reflected by competent, trustworthy
general HR representatives being made available to
postal workers who are capable of addressing, at a high
level, all aspects of professional life while respecting
peoples' confidentiality and freedom of expression.
This second dimension calls for skills that are more
interpersonal, and specifically relies on adopting a
proactive stance.
(1) The indicators are those defined by the state health insurance fund. Lost-time accident frequency = number of lost-time accidents x 1,000,000/number
of hours worked Severity off accident at work = number of days compensated x 1,000/number of hours worked.
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Employees General remuneration policy17
Around 1,100 local HR managers have been sent to all the
regions and to each of La Poste's Business Lines. Several
of the Group's subsidiaries have also retained this principle.
Each postal worker and each manager benefit from their
services.
The duties of local HR managers were defined and
formalized by the Group's Executive Committee in April
2013.
Four primary duties are shared among these HR managers,
regardless of the unit they are attached to:
providing information about and deal ing with
frequently asked questions pertaining to administrative
management;
providing information and giving advice about
professional development;
being a trusted advisor for employees experiencing a
difficult situation, regardless of whether it is professional
or personal;
support managers in ensuring the management and
professional development of team members.
To do this, they must meet with:
each manager within their scope at least twice per year;
each employee at least once every two years.
In 2013, a professionalisation programme for these HR
managers was launched in each Business Line. It was
completed at the cross-functional level with inter-
Business Line training sessions that began in November
2013 and will continue in 2014.
17.6.2 The HR role of managers
In order to assist and support new managers, in 2013, a
specific obligatory training program based on the HR role
of the manager was put in place. This training, which is
given before, or as at, the position start date, allows the
manager to:
know how to perform his/her role in supporting
employees, and in particular in supporting their
professional development;
support his/her group in the process of change;
know how to create individual and collective Quality of
life at work conditions within his/her team.
This training course, which lasts for two days, is mandatory,
and provides an opportunity for managers from all the
Business Lines and all management levels to meet and
mingle. 3,000 new managers will be trained each year. In
addition to the new manager training program, and in order
to support them during the first months after assuming
their new position, La Poste now systematically designates
an experienced contact for each new manager.
17.7 General remuneration policy
17.7.1 Wage policy
Special measures apply to state employees in the public
sector (points accumulation system).
For employees under contract, the remuneration policy
is set out in the Company agreement and through annual
pay negotiations. It must be adapted to the specific nature
of La Poste, which is a labour-intensive company whose
business is conducted individually or in small entities. This
makes service quality dependent upon the attitude of each
employee. In this sense, La Poste looks to secure a degree
of loyalty from its operational/production staff while keeping
its payroll costs necessarily competitive. The remuneration
policy primarily comprises an annual negotiated change as
well as a certain progression in years of service recognizing
the development of expertise in a job. It is supplemented
with promotion measures adding value to career paths
and changes. An additional sum for family expenses takes
into consideration the costs employees may incur as their
personal life develops. All of the combined elements allow
for motivating remuneration changes on a controlled scale.
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Employees General remuneration policy 17
For managers, the remuneration policy includes individual
fixed pay increases based on the contribution made and
potential held, and variable awards based on annual
quantitative and qualitative targets. Sales staff (over
10,000 individuals) benefit from a commission scheme that is
appropriate for the sales policy, including in the banking area.
17.7.2 Profit-sharing
The incentive scheme in effect at La Poste since 2007 is
based on economic, quality of service and responsible
development results. A new incentive agreement was signed
in 2012, incentive-based pay is now directly proportional to
the Group's net profit/(loss) after taxes It is calculated based
on the profit (loss) after taxes of consolidated companies,
restated by the items defined in the agreement. There is
a standard payout for all postal workers regardless of the
Business Line to which they belong.
In 2013, an amendment to the incentive agreement was
signed. It provides for the integration of a CO2 emission
criterion among the indicators serving as the definition of
the amount distributed.
The incentive accentuates the efforts accomplished and
results in personnel working together for the company's
smooth operation and profits. These incentives amounted
to €73.6 million for the 2013 financial year.
Most subsidiaries have employee incentive agreements.
17.7.3 Group Savings Plan (PEG) and Collective Retirement Savings Plan (PERCO)
In December 2006, La Poste and five trade unions (CFDT,
CFTC, CGC, FO and UNSA) signed two company agreements
respectively instituting the Group Savings Plan (PEG) and
Collective Retirement Savings Plan (PERCO).
These savings plans are offered to all private-sector
employees and state employees of La Poste parent
company. Subsidiaries may decide whether to sign up for
the PEG and/or PERCO when they meet the enrolment
conditions established by the agreement (subsidiary in
which La Poste holds an interest of at least 50%, and where
the financial statements are consolidated). So far, eight
subsidiaries have done so, among the largest most notably
Mediapost, Poste Immo and Chronopost.
The range of investments available to postal workers—with
the PEG or PERCO—comprises five employee mutual
funds (FCPE) covering all asset classes: a money market
fund, bonds, two equity funds and a solidarity fund. A
very significant proportion of funds now comprises SRI
investments (Socially Responsible Investment). Therefore,
the FCPE, La Poste Responsable Monétaire, which
comprises nearly 40% of postal workers' investments, has
invested 52% in ISR, and ISR floor rates are applied for
bonds and equity funds.
In 2012, the Supervisory Board decided to change the
La Poste Responsable Actions 70 Solidaire FCPE: a new
organization, Habitat et Humanisme, currently benefits from
capital expenditure made under the solidarity pocket. This
capital expenditure is thus added to those made with the
Société d’Investissement France Active (SIFA).
La Banque Postale Asset Management (LBPAM) manages
these employee investment funds. In October 2012, and
upon the Supervisory Board's request, LBPAM established
an over-performance commission for four of the five
La Poste FCPEs. This Commission applies when the
performance of the FCPE surpasses its reference index.
The agreement provides for an additional contribution from
La Poste parent company. The amount of this top-up is
proportionate to the investments employees have made in
their respective plans:
for the PEG, the top-up amounts to 35% of contributions
up to €400, 25% for the next €400 and 15% for the
subsequent €8,400. The maximum top-up is therefore
€1,500 gross;
for the PERCO, it equals 33% of contributions up to a
maximum of €900 gross.
Subsidiaries signing up to the Group savings plan are free
to determine their own top-up policy.
There were over 72,300 members of one or both employee
savings plans (PEG and PERCO) as at 31 December 2013
at Le Groupe La Poste (the La Poste parent company and
the eight member subsidiaries), representing a 4% increase
between 2012 and 2013.
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Employees Staff policy17
At the La Poste parent company, the number of PEG
amounted to 57,275 and the number of PERCO amounted to
22,340. As at 31 December 2013, the total amounts invested
in the various funds amounted to €463.5 million. Lastly,
for 2013, the matching contribution made by the parent
company amounted to €16.4 million.
The La Poste employee mutual funds Supervisory Board
comprises representatives of unit-holders and management
in equal numbers. The Board met three times in 2013.
La Poste has a pro-active training policy for appointed and
alternate members of the Supervisory Board. The training
structure, which was reviewed in 2012, was rolled out in the
form of (1) an induction model, which was offered to new
members of the Board of Directors in October 2013, in order
to help them to familiarize themselves with the financial and
technical products involved in financial management, and
(2) a "2013 News" module offered to all Board members
in November 2013, in order to improve their knowledge of
financial management, These modules are customized and
designed to meet the specific needs of the Supervisory Board
members.
17.7.4 Employee profit-sharing
For La Poste, Act No.2010-123 of 9 February 2010
(Article 12) amended the last paragraph of part III of
Article 32 of the Act of 2 July 1990, stating that title II of
book III of the French Employment Code (Employee profit-
sharing) may be extended to all La Poste staff (including
state employees) under conditions set out in the Council
of State decree.
The introduction of profit-sharing at La Poste remains
subject to the issuance of a decree (provision in the second
Sub-Paragraph of Article L. 3321-1 of the French Labour
Code, whereby “a Council of State decree specifies which
industrial and commercial public enterprises, companies,
business combinations or legal entities—regardless of their
legal status but where more than half of the share capital
is held directly by the French government—are subject
to the provisions of this title. This decree establishes the
conditions under which these provisions apply”).
Subsidiaries are required to operate profit-sharing
schemes.
17.8 Staff policy
17.8.1 Staff regulations
Having both state and private employees, La Poste tries
to apply common or at least comparable HR rules to each
group. This policy is essential as each part of the Company
has state employees and private-sector employees at the
same workstations.
Article 29 of the Act of 2 July 1990 states that La Poste’s
state employees are governed by specific regulations
pursuant to Act 83-634 of 13 July 1983 on the rights
and obligations of state employees and to Act 84-16 of
11 January 1984 on legal provisions relating to the French
public sector.
Article 31 of the Act of 2 July 1990 states that contractual
employment is subject to collective bargaining agreements.
Act 2010-123 of 9 February 2010 relating to La Poste as a
public company and to postal business, has not affected
pre-existing provisions on the status of staff.
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Employees Staff policy 17
17.8.2 Social dialogue and staff representation
17.8.2.1 Institutions representing staff at La Poste (IRP)
La Poste’s IRP mostly come under public sector legislation,
with the exception of CHSCT, which in accordance with the
law, falls under the rules of the French Employment Code
since 16 November 2011.
La Poste’s conversion from public sector company into a
public limited company in 2010 did not affect the nature of
the IRP. Indeed, at a staff representation level, co-existence
of two categories of staff requires consistency throughout
the Company.
Individual staff representation
In terms of individual representation, the creation of joint
administration Committees (CAP) for state employees and
public contractual employees meant creating joint advisory
Committees for private-sector employees (CCP). Committee
members are elected every four years following the CAP
model.
Within the joint Committees, elected officials are called
upon to advise on individual circumstances relating to
mobility, assessment, disciplinary matters, promotion, etc.
Collective staff representation: Technical
Committees and CHSCT
The collective representative authorities are the Technical
Committees (CT) and the Committees on Hygiene, Health
and Safety at Work (CHSCT).
These authorities were implemented following the last
professional elections on 18 October 2011.
The staff representatives within the Technical Committees
(CT) review in-depth subjects such as the structure
and functioning of services, statutory rules, training,
professional skills and qualifications development,
professional equality, parity and anti-discrimination
measures. The direct election of staff representatives to CTs
confirms even more the legitimacy and the role of elected
representatives within a context of ongoing social dialogue
and improving employee relations at La Poste.
The appointment of representatives to the HSWCC was
based on the representative nature of the last WC elections,
which were organized as from 16 November 2011, in
accordance with Part IV of the French Labour Code and
Decree No.2011-619 of 31 May 2011 regarding health and
safety at work at La Poste (these rules apply to all La Poste
employees, regardless of whether they are state employees
or private employees).
As defined in the French Employment Code, La Poste's
Committees on hygiene, safety and working conditions are
tasked with:
helping to protect the physical and mental health
and safety of company workers, and of workers made
available to the company by an outside company;
helping to improve working conditions, primarily with a
view to encouraging women's access to all jobs, and to
dealing with maternity-related issues;
ensuring that all the legal obligations decided in these
areas have been complied with.
Professional elections
During the professional elections that took place
on 18 October 2011, postal workers elected their
representatives to the technical Committees (CT), joint
administration Committees (CAP) or Joint Advisory
Committees (CCP), pursuant to the law of 5 July 2010 on
the modernization of social dialogue in Public Service and
the decrees of 7 September 2011 on La Poste's CT and CAP
(Professional Ability Certificate) qualification.
The staff representatives on the CTs are elected for four
years by the entire staff of La Poste irrespective of their
status, and the representation of the trade unions is based
directly on the results of these elections to the CT at the
level concerned.
The next elections will take place in late 2014.
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Employees Staff policy17
17.8.2.2 Quality of life at work agreement dated 22 January 2013
The “Quality of Life at Work” framework agreement aims
to significantly and sustainably improve work and life
conditions for all postal workers.
It constitutes the first stage for making La Poste an
exemplary company in work life and health. It engages
the entire company, in particular the Department heads
and managers whose responsibility is to pay attention
to the well-being of postal workers, as well as economic
performance and customer satisfaction on a daily basis.
This framework agreement reflects the quality of debates
and propositions put forward by professional associations
and by management and testifies to the wealth of social
dialogue in the company. It was signed by the trade union
organizations FO, CFDT, CGC-UNSA and CFTC.
The framework agreement makes precise and ground-
breaking commitments in terms of Quality of life at work and
defines ambitions and goals upon which the signing parties
mutually agree. In this regard, 17 immediate measures to
improve Quality of life at work have already been applied.
Therefore, the company has been trying out a new five
out of seven day work schedule to allow employees to
have two rest days in a week, while maintaining quality
of service and customer satisfaction.
Teleworking gave rise to an agreement on 25 June 2013,
signed by five of the six representative unions (FO, CFDT,
CGC-UNSA and CFTC).
An adjusted part-time system was created for senior
workers (state employees and private employees)
who perform jobs with harsh working conditions.
Furthermore, an adjusted part-time system is also open
to other categories of staff, in order to enable younger
postal workers who perform jobs under harsh working
conditions to change positions within the Company.
Meeting hours are supervised to allow for better work/
life balance.
The agreement also defines company rules regarding
project management applicable to all participants in
the social dialogue. Social dialogue and negotiation
on projects impacting the structure and operation of
services also include alternative scenarios introduced
by unions.
The agreement set up an original alarm system for
compliance with these social dialogue rules and
collective agreements.
The training of new managers prior to starting their
position is focused on social dialogue and the prevention
of professional risks.
In order to support and train new supervisors, as soon
as a manager is appointed to a new position, La Poste is
committed to systematically designating an experienced
contact to support the new manager during his/her first
six months and to be available in case of difficulties.
Local HR managers will be identified throughout the
company so that they can respond to managers as
well as postal workers precisely and quickly regarding
individual management or career advice.
La Poste has committed to recruiting 15,000 people
under permanent contracts over the 2012-2014 period.
Additionally, external recruitments will allow for
3,000 people having worked under a temporary contract
within La Poste to be recruited under a permanent
contract throughout the duration of the agreement. At
the same time, a system for seniority resumption that
is more favourable than the one provided for by law has
been put in place.
La Poste also commits to offering a career interview with
a specialized HR manager to each postal worker who
would like one, once he/she has held the same position
or duties for at least five years.
Access to the job market was given to all of the Group's
postal workers at the end of the first half of 2013.
It also defines the supplementary negotiations program on
the following subjects:
shared rules regarding structure, content, purpose and
working conditions;
setting up teleworking;
professional development, training and GPEC (workforce
management planning);
health and safety at work;
social dialogue;
creation of a Group body;
improvement of the executive staff policy;
HR function.
Other negotiations can be started at the unions' and the
Company management's request.
In addition to the opening of negotiations and the signing
of an agreement on teleworking on 25 June 2013, the
implementation of the "Quality of Life at Work" agreement
brought great improvements to the working conditions of
postal workers throughout 2013 on all the themes addressed
in the agreement: in particular access to training (see Section
17.3), health at work (see Section 17.5) and the reinforcement
of local support and HR support (see Section 17.6).
225Registration document 2013 / LE GROUPE LA POSTE
Employees Staff policy 17
17.8.2.3 Social dialogue bodies
For several years, La Poste and trade unions have been
aware that while staff representation bodies created as a
result of public sector law guaranteed workers’ individual
rights, changes needed to be made to employee relations
and the collective representation of these workers. Indeed,
the public sector body, the CT, is not suited to organizing
healthy social dialogue in a company having to compete
in all of its markets. It was on this basis that La Poste and
the trade unions signed an agreement on 21 June 2004
covering the principles and methods of social dialogue.
This agreement also establishes employee relations and
negotiating bodies not required under public sector laws:
La Poste’s strategy exchange Committee (CESP) and
employee relations Committee (CDSP). These bodies were
enshrined in the Act of 20 May 2005.
On 22 December 2011, within the framework of
strengthening its social dialogue, Le Groupe La Poste
established a forum for social dialogue and information
for the Group called the “Commission d’Échange sur la
Stratégie du Groupe La Poste” (Exchange Commission on
the Strategy of Le Groupe La Poste, or CESG). This new
body complements the existing forums for information
and consultation at the national level, including the CESP
and the CDSP.
A negotiation provided for by the agreement of
22 January 2013 aims to change the CESG to one Group
body in 2014.
17.8.3 Pension plan
La Poste employees are each placed in a general law plan
corresponding to their legal status: civil pension plan for
state employees and a general plan for regular employees.
La Poste does not have its own special plan.
Regarding the state employees’ pension funding, Act
No. 2006-1771 of 30 December 2006 established a full
discharge contribution system for La Poste giving them
a full discharge of all liabilities. Under the competitively
fair rate principle, the rate of this payment is “calculated
in such a way as to equalize the levels of wage-related
social security and tax charges between La Poste and
other companies coming under the ordinary social security
arrangements, applying this principle to risks common to
private-sector employees and state employees”.
Only the competitively fair rate has applied since 2010.
17.8.4 Supplementary health insurance
A supplementary personal risk scheme that takes care of
health care costs has been in effect since 2007 for salaried
staff. This plan appeared as a significant instrument to
improve the staff's living standards, notably through a
contribution system that organizes solidarity over the entire
plan to families and low-income earners. The follow-up of
this plan with trade union organizations is also a special
occasion of social dialogue, allowing for positive decisions to
be made jointly, within an appropriate financial framework.
Employees receive regular communication on the situation
and changes to the plan, which highlights the role of union
signatories.
In the case of employees who are state employees, a
health care cost repayment scheme has been in operation
since 1 January 2012, as part of the opportunity afforded
by the Act of 9 February 2010 (French Act No.2010-123 of
9 February 2010 on the La Poste public sector company
and postal business activities). An agreement was signed on
7 July 2011. This is a mandatory defined contribution group
plan, governed by the private social security law (Article
L. 911-1 of the French Social Security Code).
The positive results achieved by the two health care cost
repayment schemes have enabled a higher level of coverage
as from 1 October 2013.
Registration document 2013 / LE GROUPE LA POSTE226
Employees Staff policy17
17.8.5 Management of social activities
Management of social activities at La Poste is specifically
run by the Conseil d’orientation et de gestion des activités
sociales (Advisory and Social Activities Management
Council—COGAS). COGAS has 24 members comprising
Company representatives (eight), unions (eight) and national
associations (eight, with two representatives for each of the
four sectors covered: personal risk and solidarity, sports
and leisure, culture, catering and economic activities). It is
chaired by the Chairman of La Poste or his representative.
Following the staff elections on 18 October 2011, the seats
assigned to the unions were as follows: two for the CGT
trade union, two for the SUD trade union, two for the FO
trade union, one for the CFDT trade union, and one for the
CGC/UNSA trade union. This representation also applies
to the local branches of COGAS, the local steering and
coordination Committees (CTPC).
Starting from July 2013, all of the social assistance that was
primarily reserved for permanent staff was gradually made
available to temporary contract employees with more than
three months' service.
The 2013 budget amounted to nearly €212.6 million and
was primarily allocated to catering, sporting and cultural
activities, children and personal risk and social solidarity.
The catering offering, which includes cafeterias and
luncheon vouchers (67,265 beneficiaries), accounted for
44.1% of the total budget. Cafeteria provision is a means of
promoting the National Healthy Food Plan. Furthermore,
in 2011, the COGAS declared a new policy in order to
improve catering offerings. It adapts meal production and
delivery methods to the size and employees of the postal
facilities, to the organization and work schedules and to
the expectations of staff in this area. Support for children
and youth was the second largest item in the budget, and
amounted to 21.8% in 2013. It involves childcare assistance
delivered via childcare providers, nurseries or outdoor
centres, and financial support for stays at holiday camps.
The third largest budget item was allocated to cultural
and sporting activities, and amounted to 20.3% of the total
budget. It covers two aspects:
direct financial support to encourage practice of a sport
and access to cultural or leisure events;
subsidies to associations working in these areas so that
their rates are affordable for all postal workers.
Mutual aid and social solidarity programs make up the
fourth item, and accounted for 7.5% of the budget. These
programs involve support for families with disabled
children, the severely ill, staff suffering from alcoholism,
blood donors, first-aid providers and disabled persons.
La Poste has also developed individual social action services
under its company policy, including holiday vouchers (42,500
recipients in 2013), study grants, and prepaid service checks
(CESU).
BREAKDOWN OF SPENDING ON SOCIAL ACTIVITIES
(€ million) 2013 in % 2012
Catering and economic sector 93.91 44.1 90.38
Of which paid directly to employees 29.95 14.1 26.10
Sporting and cultural activities 43.09 20.3 43.38
Children 46.28 21.8 45.61
Personal protection and solidarity 15.94 7.5 15.82
Management and structural costs 13.36 6.3 14.54
Total 212,58 209.73
Average amount per postal worker (in euros) 1,011 996
227Registration document 2013 / LE GROUPE LA POSTE
Employees Summary of employee information 17
17.9 Employee shareholding
The second line of Paragraph III of Article 32 of the 1990 Act
states that restricted capital increases or sales of reserved
shares may be carried out through one or more corporate
mutual investment funds, in accordance with Articles
L. 3332-18 et seq. of the French Labour Code, subject to
compliance with any provisions relating to the Company’s
valuation.
Employees of La Poste and its subsidiaries, as well as their
assignees, may not hold more than a minority stake in
La Poste's share capital.
17.10 Summary of employee information
17.10.1 Distribution of Group employees in France
TOTAL INDIVIDUAL STAFF MEMBERS AS AT 31 DECEMBER
2013 2012
La Poste parent company 238,699 243,172
La Banque Postale 3,619 3,126
Sofipost 19,897 19,581
GeoPost 5,531 5,492
Poste Immo 638 644
Others 124 121
Total 268,508 272,136
Registration document 2013 / LE GROUPE LA POSTE228
Employees Summary of employee information17
17.10.2 Summary of Group employee information in France
2013 2012
Staff
Total staff as at 31 December (individuals) 268,508 272,136
Number of state employees and permanent contract employees 250,436 254,962
Number of temporary contracts 18,072 17,174
% men 49.7% 50.0%
% women 50.3% 50.0%
Average number of employees (full-time employee equivalents per annum) 243,242 245,380
% executives 22.2% 21.7%
% employees 77.8% 78.3%
Part-time workers on permanent employees
Number 34,396 35,191
% of total staff (state employees and permanent contract employees) 13.7% 13.8%
Recruitments
Number of recruits on permanent contracts 8,936 10,248
Training
Number of employees taking at least one course 173,199 130,817
229Registration document 2013 / LE GROUPE LA POSTE
Employees Summary of employee information 17
17.10.3 Summary of employee information for La Poste parent company
2013 2012
Staff
Total staff as at 31 December (individuals) 238,699 243,172
Number of state employees 115,491 122,493
Number of permanent contracts 106,296 104,188
Number of temporary contracts 16,912 16,491
% men 48.5% 48.8%
% women 51.5% 51.2%
Average number of employees (full-time employee equivalents per annum) 218,941 221,657
Part-time workers on permanent employees
Number 23,715 25,438
% of total staff 10.7% 11.2%
Number of paid overtime hours 2,506,114 4,571,137
Outside workers
Agency staff (full-time employee equivalents per annum) 2,932 2,867
Recruitments
Number of recruits on permanent contracts 5,298 5,211
% men 50.9% 52.7%
% women 49.1% 47.3%
Number of recruits aged under 25 1,814 1,913
Remuneration
Average gross monthly remuneration in euros 2,384 2,341
Collective incentives for 2013 (€ million) 73,6 94,3
Absenteeism
Rate of absence for sickness 6.14% 6%
Professional relations
Number of national agreements signed 7 5
Health and safety conditions (a)
Frequency of accidents at work with time off 25.2 26.42
Severity of accidents at work with time off 1.27 1.3
Training
Training expenditure as a percentage of payroll 3.63% 3.6%
Number of employees taking at least one course 163,822 NA
Number of work experience days 731,543 590,000
Social activities
Spending on social activities (€ million) 212,579 209,737
(a) The indicators are those defined by the French National Health Insurance Fund.
Frequency of accidents at work with time off = number of accidents with time off x 1,000,000 / number of hours worked.
Severity of accidents at work with time off = number of paid days off x 1,000 / number of hours worked.
Registration document 2013 / LE GROUPE LA POSTE230
231Registration document 2013 / LE GROUPE LA POSTE
18
18.1 Shareholders 232
18.2 Control of La Poste 232
18.3 Known agreement that could lead to a change of control 232
Principal shareholders
Registration document 2013 / LE GROUPE LA POSTE232
Principal shareholders Shareholders18
18.1 Shareholders
The French government and Caisse des Dépôts et Consignations hold all share capital and voting rights in La Poste.
There are no legal or statutory provisions that provide for the award of different voting rights to shareholders.
Shareholder
2013 2012
No. of shares% share
capital% voting
rights No. of shares% share
capital% voting
rights
French government 700,000,000 73.7% 73.7% 655,555,556 77.1% 77.1%
CDC 250,000,000 26.3% 26.3% 194,444,444 22.9% 22.9%
Total 950,000,000 100% 100% 850,000,000 100% 100%
Shareholdings presented as at 31 December 2013 relate
to the position after the €2.7 billion capital increase was
finalized, which is described in Chapter 21 (Section 21.1.7)
and paid in three instalments (April 2011, April 2012 and
April 2013).
18.2 Control of La Poste
Article 1 of Act No.2010-123 of 9 February 2010 provides
that the share capital of La Poste shall be held by the
French government and by other public sector legal entities,
except for the portion that may be held under employee
shareholding arrangements.
In accordance with the provisions of this Article, the share
capital is held by the French government—the majority
shareholder—and by Caisse des Dépôts et Consignations.
The Company does not feel there is any risk of control being
exercised improperly.
18.3 Known agreement that could lead to a change
of control
None.
233Registration document 2013 / LE GROUPE LA POSTE
19
19.1 Relations with the French government and public sector companies 234
19.2 Relations with consolidated companies 235
Related-party transactions
Registration document 2013 / LE GROUPE LA POSTE234
19Related-party transactions Relations with the French government and public sector companies
Related-party transactions are described in Note 35 to the consolidated financial statements, including relations with
the French government and transactions with CNP Assurances, which is the only significant entity within the scope of
consolidation. A commercial partnership has been agreed to between CNP Assurances and La Banque Postale (see
Chapter 5—Section 5.1.3), generating business transactions described in Note 35 to the consolidated financial statements.
19.1 Relations with the French government and public
sector companies
19.1.1 Relations with the French government
Since the 10 February 2010 Act reaffirming the provisions
of the July 1990 Act on the restructuring of the postal and
telecommunications public service, Le Groupe La Poste has
been public limited company overseen by the Minister for
Industry under the Minister for the Economy, Industry and
Employment, and subject to economic and financial control
by the French government, and the control procedures of
the French Court of Auditors and the French Parliament.
Relations between La Poste and the French government
are contracted out under business contracts. The latest
agreement to date, for the period between 2013 and 2017,
was signed by all the stakeholders on 1 July 2013. This
agreement is characterized by:
maintaining the public service missions entrusted to
La Poste: the Universal Postal Service, press transport
and delivery, banking accessibility and regional planning,
and maintaining the principle of offsetting costs for the
latter three missions;
progress in strengthening quality of service;
missions adapted to users' expectat ions and
technological advances;
the implementat ion of corporate c i t i zenship
undertakings in favour of the development of regions and
companies, the most disadvantaged members of society,
the development of the digital society and corporate
social responsibility initiatives.
The French Postal Regulation Act of 20 May 2005 granted
ARCEP the power to regulate the Universal Postal Service's
rates on a multi-year basis, after reviewing La Poste’s
proposals. In addition, this Act confirmed and clarified
La Poste’s regional planning responsibilities.
Regarding the Group’s Banking activities, the French
government sets the commission rates on regulated
savings products: Livret A passbook savings accounts,
Sustainable Development savings accounts and Popular
savings accounts. The change in these rates has a direct
impact on La Banque Postale’s Net Banking Income.
In March 2012, La Banque Postale, Caisse des Dépôts,
Dexia SA and the French government established the
foundation of the new system for local authorities financing
(see Section 19.1.2).
On 16 January 2014, the French government, La Poste, and
the French Mayors’ Association signed a new local postal
coverage agreement [see Chapter 5, Section 5.3.2.2], for a
period of two years (2014-2016).
19.1.2 Relations with Caisse des Dépôts et Consignations
The French Postal Act amended by the Act of 9 February
2010 provides that the share capital of La Poste may only be
held by the French government and by other publicly owned
legal entities, except for the portion that may be held under
employee shareholding arrangements.
In this context, Caisse des Dépôts et Consignations, a
public sector company governed by Articles L. 518-2 et seq.
of the French Monetary and Financial Code, invested in
the share capital of La Poste following the Extraordinary
General Meeting on 6 April 2011, which decided La Poste’s
€2.7 billion capital increase. Caisse des Dépôts et
Consignations has committed to subscribe to this capital
increase, contributing €1.5 billion (see Chapter 21).
235Registration document 2013 / LE GROUPE LA POSTE
Related-party transactions Relations with consolidated companies 19
In its decision of 22 February 2011, the French Competition
Authority authorized the transaction, considering that, given
the small increase in market share and the existence of
numerous competitors, the deal could not adversely affect
competition in the relevant markets.
Caisse des Dépôts et Consignat ions has three
representat ives on the Board of Directors, has
representation in each of the Board Committees of the
Board of Directors and proposes the Chairman of the Audit
Committee.
Caisse des Dépôts et Consignations and La Banque
Postale are jointly shareholders in CNP Assurances via the
Sopassure holding company (see Chapter 5.1.3).
As part of financing local authorities, La Banque Postale
has committed to market loans to local authorities and
hospitals. La Banque Postale and Caisse des Dépôts
founded La Banque Postale Collectivités Locales, in which
La Banque Postale and Caisse des Dépôts have respective
interests of 65% and 35%, on 27 March 2013. This subsidiary
provides services relating to the marketing of loans, which
are then refinanced by Société de Financement Local
(SFIL), a company created on 23 January 2013, in which
La Banque Postale (5%) and Caisse des Dépôts (20%) are
also shareholders.
19.1.3 Relations with public sector companies
Le Groupe La Poste enters into transactions with public
sector companies in the normal course of its business. They
are entered into on market conditions.
In 2013, the Supervisory Board of La Banque Postale and
the Board of Directors of La Poste authorized La Banque
Postale to acquire a portion of the share capital of SOFIAP
(Société Financière pour I'Accession à la Propriété), which
was previously owned by Crédit Immobilier de France (51%)
and SNCF (49%). SOFIAP is a credit institution that primarily
aims to offer home loans to employees of SNCF, the French
railways operator.
19.2 Relations with consolidated companies
19.2.1 Relations with fully consolidated Group companies
With some of its subsidiaries, La Poste has signed
framework agreements, support agreements and service
contracts (marketing, BPO, IT services, real estate services,
finance, etc.). Specifically, La Poste is the main service
provider for La Banque Postale, which uses La Poste to
run its front-office (Retail Brand post offices) and back-
office (financial centres) operations. La Banque Postale is
La Poste’s main banker.
Furthermore, treasury agreements have been implemented
between La Poste and most of its subsidiaries (excluding
La Banque Postale).
19.2.2 Relations with associated companies
Transactions with associated companies primarily relate to CNP Assurances with which La Banque Postale has signed a
commercial partnership agreement.
Registration document 2013 / LE GROUPE LA POSTE236
237Registration document 2013 / LE GROUPE LA POSTE
20
20.1 Consolidated financial statements 238
20.2 Separate financial statements 379
20.3 Dividend distribution policy 426
20.4 Legal and arbitration proceedings 426
20.5 Material change in the Company’s financial or commercial position 426
Financial information regarding
the assets and liabilities, financial
position and results of the issuer
Registration document 2013 / LE GROUPE LA POSTE238
Financial information regarding the assets and liabilities, financial position and results of the issuerConsolidated financial statements
fi
20
The amounts shown in the tables are generally provided in millions of euros. Rounding may on occasion result in slight
differences in totals or changes.
20.1 Consolidated financial statements
20.1.1 Consolidated financial statements for the year ended 31 December 2013
Consolidated income statement
(€ million) Note 2013 2012
Mail revenue 10,461 10,774
Express revenue 4,379 4,016
Parcels revenue 1,567 1,522
La Poste Retail Brand revenue 92 88
Real estate revenue 62 41
Revenues from commercial activities 6 16,562 16,441
Banking operating revenue 8,248 8,815
Banking operating expenses (2,726) (3,597)
Net Banking Income 7 5,522 5,217
Operating revenue 22,084 21,658
Purchases and other expenses 8 (7,362) (7,108)
Personnel expenses 9 (12,524) (12,599)
Taxes and levies 10 (236) (235)
Depreciation, amortisation, provisions and impairment 11 (1,306) (1,175)
Other operating revenue and expenses 12 130 224
Proceeds from asset disposals (16) 52
Net operating expenses (21,314) (20,842)
Operating profit/(loss) 770 816
Cost of net financial debt (198) (221)
Other financial items (25) (63)
Financial profit/(loss) 13 (223) (284)
Profit before tax of consolidated companies 548 532
Income tax 14 (127) (231)
Share in profits of equity associates 215 180
Consolidated net profit/(loss) 635 481
Net profit/(loss), Group share 627 479
Attributable to non-controlling interests 8 2
239Registration document 2013 / LE GROUPE LA POSTE
Financial information regarding the assets and liabilities, financial position and results of the issuer
Consolidated financial statements
es, ernts 20
Consolidated comprehensive income statement
Amounts after tax(€ million) 2013
2012
Restated (a) As reported
Consolidated net profit/(loss) 635 481 481
Comprehensive income and expenses recognised under equity
Recyclable items
Change in unrealised gains and losses on financial instruments 32 216 216
Of which transferred to net profit/(loss) for the year 38 38
Translation adjustments (31) 7 7
Of which transferred to net profit/(loss) for the year
Share in comprehensive income and expenses posted of equity associates (22) 198 198
Of which:
change in unrealised gains and losses on financial instruments—CNP 26 220 220
other unrealised gains and losses on financial instruments (4) 1 1
cumulative translation adjustments (44) (23) (23)
Non recyclable items
Actuarial adjustments on employee benefits 27 (154)
Comprehensive income and expenses recognised in equity (after tax) 6 267 421
Comprehensive income 642 748 902
Net profit/(loss), Group share 633 746 900
Comprehensive income attributable to non-controlling interests 8 2 2
(a) See Note 2.1.A.
Registration document 2013 / LE GROUPE LA POSTE240
Financial information regarding the assets and liabilities, financial position and results of the issuerConsolidated financial statements
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20
Consolidated balance sheet
ASSETS
(€ million) Note 31/12/2013 31/12/2012
Goodwill 15 1,587 1,562
Intangible assets 16 816 825
Tangible assets 17 5,941 6,062
Investments in equity associates 18 2,634 2,446
Other non-current financial assets 19 942 894
Deferred tax assets 14 153 113
Non-current assets 12,073 11,903
Current banking assets
Customer receivables and loans 20.1 59,204 49,922
Receivables from credit institutions 20.2 82,894 81,254
Securities portfolio 20.3 49,784 54,281
Other current financial assets 20.4 1,200 1,305
Accruals 20.5 1,185 2,387
Cash and central bank deposits 23.2 1,570 2,726
Other current assets
Inventories and work-in-progress 21 136 203
Trade and other receivables 22 2,936 2,453
Other current financial assets 19 430 781
Cash held at post offices 612 719
Income tax credit 253 211
Other accruals—Assets 118 126
Cash and cash equivalents 23 2,163 2,167
Assets held for sale 24 120 104
Current assets 202,604 198,641
Total assets 214,677 210,544
241Registration document 2013 / LE GROUPE LA POSTE
Financial information regarding the assets and liabilities, financial position and results of the issuer
Consolidated financial statements
es, ernts 20
LIABILITIES
(€ million) Note 31/12/2013
31/12/2012
Restated (a) As reported
Share capital 25 3,800 3,400 3,400
Issue premium 900 700 700
Reserves 2,698 2,357 2,355
Unrealised gains and losses on financial instruments 635 581 581
Actuarial adjustments on employee benefits (80) (110)
Cumulative translation adjustments (120) (45) (45)
Net profit/(loss), Group share 627 479 479
Equity, Group share 8,460 7,362 7,470
Non-controlling interests 57 65 65
Consolidated equity 8,516 7,427 7,535
Medium and long-term bonds and other financial debt 27 6,043 6,085 6,085
Employee benefits—non-current liabilities 29 1,685 1,821 1,713
Non-current provisions for contingencies and losses 26 80 90 90
Deferred tax liabilities 14 166 142 142
Non-current liabilities 7,976 8,140 8,032
Current provisions for contingencies and losses
Specific provisions for the Insurance and Banking activities 26 1,126 1,005 1,005
Current provisions for contingencies and losses 26 540 385 385
Short-term bonds and other financial debt 27 1,060 1,567 1,567
Current banking liabilities
Liabilities to credit institutions 30.1 14,757 15,811 15,811
Liabilities to customers 30.2 166,583 160,393 160,393
Debt evidenced by a certificate and other financial liabilities 30.3 6,790 7,185 7,185
Accruals 20.5 2,003 3,493 3,493
Other current liabilities
Trade and other payables 31 4,424 4,349 4,349
Government—Income tax 33 16 16
Employee benefits—current liabilities 29 663 617 617
Other accruals—Liabilities 207 154 154
Liabilities held for sale 24
Current liabilities 198,185 194,977 194,977
Total liabilities 214,677 210,544 210,544(a) See Note 2.1.A.
Registration document 2013 / LE GROUPE LA POSTE242
Financial information regarding the assets and liabilities, financial position and results of the issuerConsolidated financial statements
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20
Changes in consolidated equity 2013
Amounts after tax(€ million)
Share capital
Issue premium
Unal-located profit/(loss)
Cumu-lative
translation adjust-ments
Unrealised gains and losses on financial
instruments —CNP
Other unrealised
gains and losses on financial
instruments
Actuarial adjust-
ments on employee benefits (a)
Other reserves
Total, Group share
Non-controlling
interests Total
Consolidated equity as at 31/12/2012 (as reported) 3,400 700 479 (45) 392 189 - 2,355 7,470 65 7,535
Application of IAS 19 Revised (a) (110) 2 (108) (108)
Consolidated equity as at 31/12/2012 (restated) 3,400 700 479 (45) 392 189 (110) 2,357 7,362 65 7,427
La Poste capital increase (b) 400 200 600 600
Dividend payments (171) (171) (7) (178)
Call options on non-controlling
interests 67 67 (1) 66
Purchase of non-controlling
interests (43) (43) (6) (49)
Appropriation of 2012 earnings (308) 308 - - -
Comprehensive income
for the year 627 (75) 26 28 27 - 633 8 642
Of which:
Net profit 627 627 8 635
Other comprehensive
income (75) 26 28 27 - 6 - 6
Other 2 9 12 (3) 8
Consolidated equity as at 31/12/2013 3,800 900 627 (120) 418 217 (80) 2,698 8,460 57 8,516
(a) See Note 2.1.A.
(b) See Note 1.1.
243Registration document 2013 / LE GROUPE LA POSTE
Financial information regarding the assets and liabilities, financial position and results of the issuer
Consolidated financial statements
es, ernts 20
Changes in consolidated equity 2012
Amounts after tax(€ million)
Share capital
Issue premium
Unal-located profit/(loss)
Cumu-lative
translation adjust-ments
Unrealised gains and losses on financial
instru-ments—
CNP
Other unrealised
gains and losses on financial
instruments
Actuarial adjust-
ments on employee benefits (a)
Other reserves
Total, Group share
Non-controlling
interests Total
Consolidated equity as at 31/12/2011 (as reported) 3,400 700 478 (29) 171 (29) 2,093 6,783 3 6,786
First application of IAS 19 Revised (a) 46 46 46
Consolidated equity as at 31/12/2011 (restated) 3,400 700 478 (29) 171 (29) 46 2,093 6,829 3 6,832
Dividend payments (144) (144) (6) (151)
Call options on non-controlling
interests (24) (24) (6) (31)
Purchase of non-controlling
interests (28) (28) (28)
Appropriation of 2011 earnings (333) 333 - -
Comprehensive income
for the year 479 (16) 221 216 (154) 746 2 748
Of which:
Net profit 479 479 2 481
Other comprehensive income (16) 221 216 (154) 267 267
Other (b) 2 (2) (16) (16) 73 57
Consolidated equity as at 31/12/2012 (restated) 3,400 700 479 (45) 392 189 (110) 2,357 7,362 65 7,427
Consolidated equity as at 31/12/2012 (as reported) 3,400 700 479 (45) 392 189 2,355 7,470 65 7,535
(a) See Note 2.1.A.
(b) Including a variation in non-controlling interests linked to the change in consolidation method of Seur SA of €50 million.
Registration document 2013 / LE GROUPE LA POSTE244
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20
Consolidated cash flow statement
2013 2012
(€ million) Note GroupNon-
bankingLa Banque
Postale GroupNon-
bankingLa Banque
Postale
Gross Operating Profit 2,149 824 1,325 2,117 915 1,202
Change in provisions for current assets
and unrecoverable receivables (192) (28) (164) (181) (28) (153)
Miscellaneous financial income and expenses 5 5 0 3 3
Cash flows from operating activities before cost of net debt and taxes 38.1 1,962 801 1,162 1,939 890 1,049
Change in working capital requirement 38.3 12 36 (24) 136 161 (25)
Change in cash held at post offices 108 108 (88) (88)
CICE tax credit for the period (excluding provisions) (255) (253) (2)
Change in balance of banking sources and uses 38.4 (2,149) (2,149) (281) (281)
Taxes paid (141) 97 (238) (138) 40 (177)
Dividends paid by La Banque Postale to La Poste 258 (258) 186 (186)
Dividends received from equity associates 9 9 (0) 7 8 (0)
Cash flows from operating activities (454) 1,056 (1,509) 1,575 1,195 379
Purchase of intangible and tangible assets 38.5 (997) (837) (160) (1,065) (864) (201)
Purchase of financial assets (27) (26) (1) (38) (35) (3)
Issue of subordinated notes by La Banque Postale (800) 800
Proceeds from the disposal of tangible and intangible assets 132 125 7 234 234 0
Proceeds from disposals of financial assets 28 27 1 19 18 0
Impact of changes in consolidation scope (163) (50) (113) (82) (82)
Change in financial assets held for investment purposes 157 157 (148) (148)
Cash flows from investing activities (869) (1,403) 534 (1,079) (876) (203)
Capital increase (b) 600 600 0 1,053 1,053 (0)
Dividends paid (178) (175) (3) (151) (148) (3)
Interest paid (172) (172) 0 (164) (164) 0
Proceeds from new borrowings 38.6 402 402 752 752
Repayment of borrowings 38.7 (759) (759) (698) (698)
Purchase of non-controlling interests (53) (9) (45)
Other cash flows from financing activities 38.8 (97) (97) 63 63
Intra-group flows 557 (557) (159) 159
Cash flows from financing activities (256) 348 (605) 855 700 155
Decrease (increase) in cash and cash equivalents from Banking
activities before impact of changes in consolidation scope 38.9 1,580 1,580 (331) (331)
Impact of changes in exchange rates (5) (5) 2 2
Change in cash and cash equivalents (a) (4) (4) (0) 1,022 1,022 0
Opening cash and cash equivalents (b) 2,167 2,167 1,146 1,146
Closing cash and cash equivalents (b) 2,163 2,163 2,167 2,167
(a) Excluding cash held at post offices.
(b) Of which €600 million received in 2013 and €1,050 million received in 2012 in relation to La Poste’s capital increase decided in April 2011.
245Registration document 2013 / LE GROUPE LA POSTE
Financial information regarding the assets and liabilities, financial position and results of the issuer
Consolidated financial statements
es, ernts 20
Registration document 2013 / LE GROUPE LA POSTE246
Financial information regarding the assets and liabilities, financial position and results of the issuerConsolidated financial statements
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General items 248
Note 1 Significant events during the financial year 248Note 2 Basis of preparation for the consolidated financial statements 249Note 3 Accounting Rules and Policies 251Note 4 Changes in the consolidation scope 266Note 5 Segment reporting 267
Notes to the income statement 273
Note 6 Revenues 273Note 7 Net banking income 275Note 8 Purchases and other external expenses 275Note 9 Personnel expenses and headcount 276Note 10 Taxes and levies 277Note 11 Depreciation, amortisation, provisions and impairment 277Note 12 Other operating revenue and expenses 278Note 13 Financial profit/(loss) 278Note 14 Income tax 279
Notes to the balance sheet 283
Note 15 Goodwill 283Note 16 Intangible assets 286Note 17 Tangible assets 287Note 18 Equity associates 288Note 19 Other financial assets 289Note 20 Banking activities financial assets 291Note 21 Inventories and work-in-progress 294Note 22 Trade and other receivables 294Note 23 Cash and cash equivalents 295Note 24 Assets and liabilities held for sale 295Note 25 Share capital 296Note 26 Provisions for contingencies and losses 297Note 27 Bonds and other financial debt 299Note 28 Net debt 304Note 29 Employee benefits 305Note 30 Banking activities financial liabilities 312Note 31 Trade and other payables 314
Notes to the consolidated financial statements
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Additional information 315
Note 32 Information on risks excluding Banking activities 315Note 33 Information on risks relating to Banking activities 317Note 34 Additional information on financial instruments 344Note 35 Related party transactions 357Note 36 Off-balance sheet commitments and contingent liabilities 358Note 37 Banking activities balance sheet 363Note 38 Notes to the consolidated cash flow statement 365Note 39 Fees paid to the Statutory Auditors 368Note 40 Post-balance sheet events 368Note 41 Scope of consolidation 369
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General items
NOTE 1 Significant events during the financial year
1.1 La Poste capital increase of €600 million
1.2 Implementation of a Tax Credit to promote Competitiveness and Employment (CICE)
1.3 Reclassification of held to maturity investments
1.4 Buyback of non-controlling interests from La Banque Postale Gestion Privée
1.5 Financing of local authorities
1.1 La Poste capital increase of €600 million
In accordance with the decisions of the Extraordinary
General Meeting on 6 April 2011, relating to the La Poste
capital increase, the French government and Caisse des
Dépôts exercised the 350 million equity warrants they were
holding in April 2013, which resulted in the issuance of
100 million new shares at a unit price of €6, €2 of which
was an issue premium.
Following this transaction, La Poste's share capital rose to
€3.8 billion, and the "issue premium" entry to €900 million.
1.2 Implementation of a Tax Credit to promote Competitiveness and Employment (CICE)
The amending finance law for 2012 dated 29 December 2012
established a Tax Credit to promote Competitiveness and
Employment (CICE) as at 1 January 2013. This tax credit
amounts to 4% of the remuneration paid that is less than
2.5 times the French minimum wage (SMIC) in 2013. This
rate will go up to 6% as at 1 January 2014. This tax credit
is recognised as a deduction for payroll expenses in the
Group's accounts.
A tax credit is recognised in income for personnel expenses
during the year, including the personnel expenses payable
(i.e. income of €255 million). A tax credit is also recognised
based on employee provisions (i.e. income of €42 million
in 2013).
In all, the CICE income for the year totalled €297 million.
Given their extremely long-term nature, no tax credit has
been taken into account for evaluating post-employment
benefits.
1.3 Reclassification of held-to-maturity investments
The amount of La Banque Postale's exposure to countries
receiving aid via the support plan is down compared to
31 December 2012. Most of these securities remain in held-
to-maturity portfolios and are therefore subject to disposal
based on redemptions.
Nevertheless, as part of its policy to diversify its exposures,
La Banque Postale has modified its intention to hold
a portion of its exposures from these countries until
maturity. Within this context, and in accordance with IFRS
standards on change of management intent for portfolios
of an exceptional nature that remain below the materiality
threshold, La Banque Postale reclassified €1.8 billion in
held-to-maturity investments to available-for-sale financial
assets. A portion of these downgraded investments have
since been sold for a nominal amount of €1.1 billion.
Impacts from the reclassification are presented in
Note 33.7.3.
1.4 Buyback of non-controlling interests from La Banque Postale Gestion Privée
In accordance with the terms of the partnership protocol
that was signed in 2007 between La Banque Postale and
Oddo et Cie as part of their joint subsidiary, La Banque
Postale Gestion Privée (LBPGP), in September 2012,
La Banque Postale had announced its decision not to renew
this partnership when it reached the end of its term.
The 49% equity investment in La Banque Postale Gestion
Privée held by Oddo & Cie was acquired on 27 June 2013,
at the end of an arbitration proceeding which determined
the acquisition price.
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1.5 Financing of local authorities
La Banque Postale Collectivités Locales was formed
during the first half of 2013. La Banque Postale holds a
65% interest in this company, while Caisse des Dépôts
holds 35%. This subsidiary will provide services related
to marketing the credits granted by La Banque Postale
to the local authorities and hospitals. La Banque Postale
Collectivités Locales will have intermediary status in bank
transactions. This company's business activity did not have
a significant impact as at 31 December 2013.
NOTE 2 Basis of preparation for the consolidated financial statements
2.1 Accounting guidelines
2.2 Valuation basis and use of estimates
La Poste, the parent company of Le Groupe La Poste
(“Le Groupe La Poste” or “the Group”) has been a public
limited company since 1 March 2010, and has its head office
at 44, boulevard de Vaugirard in Paris. It had previously
been an independent state-owned entity, which was already
subject to the same financial management and accounting
rules as commercial businesses.
The consolidated financial statements of Le Groupe
La Poste for the year ended 31 December 2013 were signed
off by the Board of Directors (meeting on 20 February 2014),
and the General Shareholders’ Meeting will be asked to
approve them.
2.1 Accounting guidelines
Pursuant to European Regulation No.1606/2002 of 19 July
2002, the consolidated financial statements of Le Groupe
La Poste for the year ended 31 December 2013 were
prepared in accordance with international financial
reporting standards (IFRS) as adopted by the European
Union These standards are available on the website of the
European Commission (ec.europa.eu/internal_market/
accounting/ias/index_fr.htm).
The accounting principles applied as at 31 December 2013
are unchanged from those applied as at 31 December 2012,
except for the items described in Point A below.
A. Standards and application interpretations that are mandatory for the first time in 2013
IAS 19 (revised in 2011)—Employee benefits
Revised standard IAS 19 introduces several changes to the
accounting principles on employee benefits.
The main impact for Le Groupe La Poste is the elimination
of the "corridor method" in recognising actuarial gains
(losses) on post-employment benefits. The application of
the revised standard IAS 19 has led to recognising actuarial
gains (losses) in other comprehensive income items, which
were until then not recognised. Unrecognised actuarial
gains (losses) totalled -€108 million as at 31 December
2012 and +€46 million as at 31 December 2011. The
actuarial differences generated during the financial year
are from now on recognised in other comprehensive income
items.
The other modifications that were introduced by revised
standard IAS 19 either did not impact, or only slightly
impacted the Group's f inancial statements as at
31 December 2013.
IFRS 13—Fair Value Measurement
This standard did not have a significant impact on fair value
measurement as at 31 December 2013.
Amendments to IFRS 7—Disclosures: Offsetting financial
assets and financial liabilities
The disclosures on financial assets and liabilities offsetting
are provided in Note 34.6.
Amendments to IAS 1—Presentation of other
comprehensive income items
In the context of the table on other comprehensive income
items, this text enables a distinction to be made between
recyclable items in net profit / (loss) and non-recyclable
items.
Amendments to IAS 12—Recovery of underlying assets
This text did not have a significant impact on the Group's
financial statements as at 31 December 2013.
2009-2011 Annual improvements
This text did not have a significant impact on the Group's
financial statements as at 31 December 2013.
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IFRIC 20—Stripping costs in the production phase
of a surface mine
This text did not have any impact on the Group's financial
statements as at 31 December 2013.
B. Standards and application interpretations that will be mandatory after 31 December 2013 and that were not applied in advance
Le Groupe La Poste did not apply the following standards
and interpretations, where the application date is after
31 December 2013, in advance:
IFRS 10—Consolidated financial statements, IFRS 11—
Joint arrangements, and IFRS 12—Disclosure of
interests in other entities
IAS 27—Separate Financial Statements
IAS 28—Investments in associates and Joint ventures
The potential impact of the application of these standards
is under review.
Moreover, the potential impact of IFRS 9—Financial
instruments, currently being prepared by the IASB, will be
analysed after its full and definitive publication.
C. Reminder of the exemptions to the retrospective application of IFRS retained on first application of IFRS
As a first-time adopter on 1 January 2006, Le Groupe
La Poste had applied the following exemptions provided for
by IFRS 1—First-time Adoption of International Financial
Reporting standards as at that date:
business combinations prior to 1 January 2006 were not
restated;
the cumulative amount of translation adjustments as
at 1 January 2006 was reclassified under consolidated
reserves, while the equity amount remained unchanged;
the cumulative amount of actuarial gains and losses on
employee commitments was recognised through equity
as from 1 January 2006;
the Group chose the option that allows tangible assets
to be measured at fair value as at the transition date for
all of its real estate assets.
2.2 Valuation basis and use of estimates
The consolidated financial statements are prepared using
the historical cost method, with the exception of certain
financial instruments measured at fair value.
When preparing the financial statements, the Group is
required to make the best possible estimates and to select
assumptions that affect the values of assets and liabilities
in the balance sheet, and the contingent assets and
liabilities disclosed in the notes to the consolidated financial
statements, as well as the income and expenses in the
income statement. The actual amounts may subsequently
differ from the estimates and assumptions.
The items primarily concerned are:
the calculation of employee benefits;
the estimates for provisions for contingencies and
losses, especially the Home Loan Savings provision;
the assumptions selected for impairment tests on
goodwill and on intangible and tangible assets;
the measurement of financial instruments not listed on
organised markets;
the credit risk assessments performed by La Banque
Postale;
the assumptions and estimates used to measure the
effectiveness of hedges.
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NOTE 3 Accounting Rules and Policies
A. Consolidation methods
B. Translation of financial statements of foreign companies
C. Foreign currency transactions
D. Consolidation of the Banking activities segment
E. Business combinations
F. Operating revenue
G. Taxes
H. Intangible assets
I. Tangible assets
J. Impairment of goodwill, intangible assets and tangible assets
K. Other financial assets
L. Banking activities assets and liabilities
M. Bond debt and financial derivatives relating to the management of the bond debt
N. Commitments to buy out non-controlling interests
O. Inventories and work-in-progress
P. Trade receivables
Q. Provisions
R. Employee benefits
S. Assets held for sale
T. Cash flow statement
A. Consolidation methods
A.1. Full consolidation
Subsidiaries that are exclusively controlled are fully
consolidated.
Exclusive control is defined as the power to direct a
company’s financial and operating policies so as to derive
a benefit from its activities.
Such power is deemed to exist by virtue of a direct or
indirect majority holding in the voting rights, the right
to appoint a majority of the members of the governing
bodies, or the right to exert dominant influence pursuant
to contracts or provisions in the articles of association.
A.2. Proportional consolidation
Companies over which the Group has joint control are
consolidated on a proportional basis.
Joint control is defined as the sharing of control over
a company operated in common by a limited number
of partners or shareholders, in such a way that they
unanimously set the financial and operating policies.
A.3. Equity method
Companies over which the Group exerts significant
influence are accounted for under the equity method.
Shares accounted for under the equity method are recorded
in the balance sheet under “Investments in associates” at
their historical cost adjusted for the share of net assets
earned subsequent to the acquisition, less impairment.
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Their profits or losses are presented in the consolidated
income statement under “Share in profits of equity
associates”.
Significant influence is defined as the power to participate
in the financial and operating policies of a company, without
having exclusive or joint control over that company.
Although the Group only holds a 20.15% interest in CNP
Assurances, Le Groupe La Poste considers that it has
significant influence over CNP Assurances due to its close
business ties with the company and its representation on
its governing bodies.
A.4. CNP Assurances share buyback agreement
La Poste sold 2% of its holding in CNP Assurances to
the Caisses d’Épargne Group in 2000, as part of the
restructuring of CNP Assurances’ share capital. This
sale was accompanied by the Caisses d’Épargne Group’s
agreement to sell back the shares, enabling Le Groupe
La Poste to recover its shareholding when the shareholders’
agreement expires.
In Le Groupe La Poste’s consolidated financial statements,
it was considered that the Group would continue to bear
the risks and enjoy the benefits relating to these shares.
As a result, the 20.15% interest in CNP Assurances, which
includes the 2% interest held by the Caisses d’Épargne
Group, is accounted for under the equity method.
A.5. Non-material controlled entities
Non-material and/or dormant entities, the consolidation of
which would not have a material impact on the presentation
of a true and fair view of the net assets, financial position
or profits and losses of the Group’s business activities, are
not consolidated.
A.6. Intra-group transactions
All material transactions between consolidated companies,
and proceeds on internal disposals, are eliminated.
A.7. Acquisition and disposal of non-controlling interests
Acquisitions and disposals of non-controlling interests that
do not result in a change in control over the company in
question are recognised in equity.
B. Translation of financial statements of foreign companies
The consolidated financial statements are presented in
euros, which is the functional and reporting currency for
La Poste, the Group’s parent company.
The financial statements of all Group companies that use
a functional currency other than the reporting currency
are converted into the reporting currency in the following
manner: the balance sheets of foreign companies are
converted into euros based on the closing exchange rate,
and their income statements are converted based on the
average rate for the financial year. The resulting translation
adjustments are recorded directly in the consolidated
balance sheet in equity, under “Translation reserves”.
Goodwill and fair value adjustments resulting from the
acquisition of a foreign operation are treated as the assets
and liabilities of the foreign operation and converted at the
closing exchange rate.
Exchange differences stemming from transactions
consisting of net investments between Group companies
are recognised in balance sheet equity under “Translation
reserves”. Foreign exchange differences resulting from
the translation of loans and other foreign exchange
instruments designated as hedging instruments for these
net investments are charged to equity on consolidation.
When a foreign operation is disposed of, the translation
adjustments initially recognised in equity are recognised
under gains and losses on disposal in the income
statement.
C. Foreign currency transactions
Transactions denominated in foreign currencies are
recognised based on the applicable exchange rates at the
recognition date.
At the closing date, assets and liabilities denominated in
foreign currencies are translated at the applicable closing
rate.
Foreign exchange differences arising on transactions
denominated in foreign currencies are recognised on the
"Net foreign exchange gains/(losses)" line under "Other
financial income" in the income statement (see Note 13).
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D. Consolidation of the Banking activities segment
In order to improve the clarity of financial statements,
specific Banking activities segment items relating to
banking and insurance activities have been combined
on separate lines in the consolidated balance sheet and
consolidated income statement. A detailed presentation of
these items is provided in the Notes, in accordance with the
requirements listed in the IFRS guidelines.
Comments on the principles applied are presented in the
following notes:
Note F: Operating revenue;
Note L: Banking activities assets and liabilities.
E. Business combinations
Business combinations are recognised according to the
acquisition method, in line with the provisions of IFRS 3—
Business Combinations (2008).
When an exclusively controlled company is f irst
consolidated, the acquisition cost represents the fair value
of the assets transferred, the equity instruments issued,
and of the liabilities incurred or assumed at the date of
exchange, plus any contingent consideration.
Goodwill represents the excess of the cost of the business
combination over the Group’s share in the fair value of the
assets, liabilities and contingent liabilities of the acquired
company.
Negative goodwill is immediately recognised in income in
the year in which the acquisition is made.
Goodwill is not amortised and is subject to impairment tests
at least once a year, and whenever there are indications that
it may have been impaired, using the method described in
Note J.
F. Operating revenue
F.1. Revenues from commercial activities
Revenue from the sale of goods or services is recognised
upon transfer of the major risks and rewards of ownership
to the customer. They are recognised as and when the
related service is provided, except for postage stamps and
pre-paid envelopes, where revenue is recognised at the time
of sale.
As a result, the time taken to deliver mail and parcels is
taken into consideration when assessing revenue at the
balance-sheet date.
F.2. Net Banking Income
Net Banking Income in the consolidated income statement
is the net difference between La Banque Postale and all its
subsidiaries’ banking operating revenue and expenses. It is
prepared in accordance with the accounting rules applicable
to banks. A breakdown of Net Banking Income is provided
in Note 7.
G. Taxes
The La Poste parent company has opted for a tax
consolidation regime where it is the umbrella company.
Deferred taxes are recognised whenever there is a timing
difference between the book value of balance sheet items
and their taxable value.
Deferred taxes recognised in prior financial years are
altered to reflect any tax rate changes. The corresponding
impact is recorded as an increase or decrease in the
deferred tax expense in the income statement unless it
relates to items recorded directly in equity, in which case
the tax is recorded in equity.
All deferred tax liabilities relating to taxable timing
differences are recognised. Deferred tax assets resulting
from timing differences, tax loss carry-forwards and tax
credits are recognised if they are likely to be recovered
(i.e. insofar as it is likely that future taxable profit will
be available against which the timing differences can be
charged). The assessment is based on the scheduled
reversal dates for all the deferred tax bases, using the
entity’s best estimates of the future changes in its taxable
profit (see Note 14).
Deferred tax assets and liabilities are offset within a single
taxable entity.
H. Intangible assets
IAS 38—Intangible Assets defines an intangible asset as
an identifiable non-monetary asset without any physical
substance (i.e. arising from legal or contractual rights or
a separable asset).
Intangible assets primarily involve software and leasehold
rights, and are recorded at their acquisition cost less
amortisation and impairment.
Software is amortised on a straight-line basis over its useful
life, usually a period of one to three years. Leasehold rights
are not amortised.
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Research and development costs
Research costs are expensed in the year in which they are
incurred.
Development costs are recorded as intangible assets,
provided:
the project has a good chance of being technically viable;
the Group has sufficient human and material resources
to produce the intangible asset;
the Group has shown its intention to complete the
intangible asset and to use or sell it;
the Group has shown that the asset will generate likely
future economic benefits;
the Group has shown that appropriate technical, financial
and other resources are available to complete the
development of the intangible asset, and to use or sell it;
expenditure attributable to the intangible asset during its
development can be reliably measured.
This expenditure, which is capitalised as intangible assets,
is amortised on a straight-line basis over the useful life of
the asset (usually three years and up to a maximum of five
years) from the time they are commissioned.
Development expenditure that does not satisfy the above
criteria is expensed in the year in which it is incurred.
I. Tangible assets
Tangible assets consist primarily of land, buildings, plants,
tools, equipment and computer hardware. They are
recorded at cost less depreciation and impairment.
I.1. Acquisition cost of a tangible asset
Only expenditure giving rise to a controlled resource as a
result of past events and from which the Group expects to
generate future economic benefits is capitalised.
The incidental costs directly attributable to the acquisition
of non-current assets or to bringing them into working
condition are included in the cost of the non-current asset.
Borrowing costs are included in the purchase cost of
qualifying assets, in accordance with IAS 23—Borrowing
Costs.
Investment subsidies received in respect of the acquisition
of a non-current asset are recorded as balance sheet
liabilities and recognised in income over the useful lives of
the underlying assets for which they were awarded.
I.2. Breakdown of the original value of non-current assets by component
A component is a part of a non-current asset that has a
different useful life, or that generates economic benefits at
a rate that differs from that of the overall non-current asset.
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Le Groupe La Poste has identified the following components:
Non-current assets Components
Real estate portfolio structural frame, roof, joinery and external works, large equipment items,
small equipment items, fixtures and fittings, and land
Sorting machines mechanical parts, intelligence, peripherals
a 4th component (feeders and measuring instruments) has been identified for
parcel sorting machines
Sorting-area equipment mechanical parts, intelligence
TGV railcars frame, servicing, interior fittings
Automated teller machines machine, installation
I.3. Depreciation periods
Tangible assets are depreciated on a straight-line basis over their useful life. The average useful lives are:
Non-current assets Depreciation period
Buildings
Structural frame 20 to 80 years
Roof 20 to 60 years
Joinery and external works 20 to 40 years
Large equipment items 15 to 20 years
Small equipment items, fixtures and fittings 5 to 10 years
Machinery and equipment
Sorting machines 5 to 15 years
Sorting-area equipment 5 to 8 years
Office and computer equipment 3 to 5 years
Office furniture 10 years
ATMs 5 to 10 years
Transportation vehicles (other than TGV railcars) 3 to 5 years
TGV railcars 15 to 30 years
Land is not depreciated.
I.4. Finance leases
Leases where the Group assumes, in substance, all the
risks and benefits, are deemed to be finance leases. An
asset acquired under a finance lease is recognised at the
lower of fair value or the present value of minimum future
payments as at the date the lease is signed, less cumulative
depreciation and impairment.
Leases that meet the definition of a finance lease, but
where the restatement would not have a material impact
on the presentation of a true and fair view of the net assets,
financial position or profits or losses of the Group’s business
activities, are treated as operating leases.
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J. Impairment of goodwill, intangible assets and tangible assets
Goodwill and intangible assets with indefinite useful lives
are systematically tested for impairment at least once a
year, and whenever an indication that the asset may be
impaired is identified.
Other intangible and tangible assets are only tested for
impairment where there is an indication that they may have
been impaired.
An impairment test involves comparing the net book value
of an asset, or of the Cash Generating Unit to which it
belongs with its recoverable value, which is the higher of
its fair value less sale costs and its value-in-use. Where the
recoverable amount of a capitalised asset or group of assets
falls below net book value, an impairment is recognised to
bring the book value in line with the recoverable amount.
Fair value less sale costs represents the amount that could
be obtained by selling an asset at the measurement date
in an arms’-length transaction, net of any disposal costs.
The value-in-use of an asset or group of assets is the
present value of the future cash flows expected to arise
from using the asset or Cash Generating Unit.
The value-in-use of goodwill is determined based on the
forecast net cash flows set out in business plans, and on the
assumptions approved by the Group as part of the budgetary
process. These forecasts generally cover a five-year period,
beyond which cash flows are extrapolated to infinity using a
low growth rate, which usually corresponds to inflation. The
cash flows are discounted applying the weighted average
cost of capital for each relevant asset or group of assets.
K. Other financial assets
K.1. Other non-current financial assets
This item primarily includes:
loans granted for local authority housing, recorded at
their amortised cost under the effective interest rate
method. Provisions are recorded so as to take the
maturities and repayment terms of these loans into
account, as well as the estimated risk of non-recovery;
unconsolidated investments classified under “Available-
for-sale financial assets” and measured at fair value
at the balance-sheet date. Changes in fair value are
recorded in equity. When the shares are disposed of,
the changes in fair value previously recognised in equity
are transferred to income. Dividends received from
unconsolidated investments are recognised as financial
income in the year in which the decision to pay a dividend
is made;
in the event that no active market exists, and where the
fair value cannot be reliably determined using alternative
measurement methods, they are retained on the balance
sheet at cost. An impairment is recorded where there
is an objective indication of a permanent reduction in
their current value. The current value is determined
based on the most appropriate financial criteria for each
company’s specific position. The criteria that are usually
selected are the share of equity held and the profitability
outlook;
the non-current portion of the fair value of financial
derivatives relating to La Poste’s bonds (see Note 27).
K.2. Other current financial assets
These primarily involve the current portion of the fair value
of financial derivatives relating to La Poste’s bonds (see
Notes 3.M and 27).
L. Banking activities assets and liabilities
The Banking activities’ financial assets and liabilities are
classified under one of the following four categories: loans
and receivables, financial assets and liabilities at fair value
through profit or loss, held-to-maturity investments and
available-for-sale financial assets.
L.1. Banking activities loans and receivables
Loans and receivables are fixed or determinable-income
non-derivative financial assets that are not listed on an
active market. They include loans and receivables due from
credit institutions and customers. Following their initial
recognition, they are recognised at amortised cost under
the effective interest rate method and can be subject to
impairment, where appropriate.
The effective interest rate is the exact interest rate that
discounts the future cash flows to the loan’s initial fair
value. It includes the transaction costs relating directly to
the loan issue, which are deemed to form an integral part
of the loan yield.
Exceptionally, some securities may be recognised in this
category. They then follow the accounting, measurement
and impairment rules for loans and receivables.
Banking activities loans and receivables are recognised in
the “Customer loans and receivables (Banking activities)” or
“Credit institution receivables (Banking activities)” balance
sheet items, depending on the type of counterparty.
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Downgrading of Banking activities loans and receivables
The downgrade process applies to outstanding overdrafts,
property loans and consumer loans.
Active accounts and closed accounts are downgraded in
respect of outstanding overdrafts. Downgrading outstanding
overdrafts on active accounts has the effect of downgrading
performing loans to doubtful performing loans. Downgrades
are performed on a monthly basis and take the amount and
length of the overdraft for each account into consideration.
Closing the account results in downgrading the receivable to
a doubtful non-performing loan. Receivables for very small
amounts are directly recognised as losses.
Property loans six or more months in arrears are
downgraded to doubtful performing loans; in the case of
consumer loans these are accounts that present a proven
risk and have at least three payments in arrears at month-
end, or loans where an application for a debt management
plan has been filed with the Banque de France even if there
are no payment issues relating to these loans, or loans with
no payment issues classified as being in default due to their
being affected by another loan to the same customer that
is in default.
Cancellation of the loan results in the receivable being
downgraded to doubtful non-performing status. Moreover,
loans are systematically classified as non-performing
doubtful loans one year after they are classified as doubtful.
In accordance with the contagion principle, all outstanding
loans to the same account holder are downgraded as soon
as one receivable with this account holder is downgraded.
Impairment of loans on an individual basis
The Group begins by identifying whether there is objective
evidence of an event occurring after the granting of a
loan—or group of loans—that is likely to lead to a loss
in value. This can involve loans at least three months in
arrears, loans subject to legal proceedings or loans where
the counterparty’s financial position has deteriorated, and
is resulting in a risk of default.
An impairment is then recognised, based on the difference
between the book value and the expected flows discounted
at the original effective interest rate, which are determined
by taking account of the debtor’s financial position and the
present value of any guarantees received. In the case of
terminated non-performing loans backed by a guarantee
where the amount outstanding is greater than a given
minimum amount, an expert appraisal is performed in order
to determine the amount of the provision. For amounts
below that threshold and for unimpaired loans, a prudent
estimate is made, which factors in the acquisition cost of
the asset.
Loans guaranteed by a private individual, and unguaranteed
loans are impaired in full.
The amount of the impairment is recognised in “Cost of
risk” in the income statement, and the value of the financial
asset is reduced through recording an impairment charge.
Collective impairment of loans
In addition, loans that are not impaired on an individual
basis are impaired on a collective basis. This process
involves a group of “sensitive loans” that form a sub-
category in performing loans: they show preliminary signs
of default (with one or more payments less than 180 days
in arrears) but their status has not yet been downgraded
to doubtful.
These loans are provisioned on the basis of a likely
downgrade, which is calculated based on historical
observations. The risk of loss that takes the nature of the
guarantee into account is calculated in the same way as for
doubtful cases, and is the subject of a provision, based on
the discounted recoverable cash flows.
The amount of the impairment is recognised in “Cost of
risk” in the income statement, and the value of the financial
asset is reduced through recording an impairment charge.
Impairment of overdrafts
Provisions recorded for overdrafts on active post office bank
accounts factor in the loan recovery performance for the
previous year according to the level of risk.
The Group’s income statement shows the cost of risk for the
Banking activities, which includes losses on irrecoverable
receivables and changes in provisions on doubtful loans, as
well as recoveries of written-off receivables. The cost of risk
is shown on the “Depreciation, amortisation and provisions”
line of the consolidated income statement.
L.2. Financial assets at fair value through profit or loss
This category includes securities held for trading purposes,
together with securities designated from the outset as
belonging to this category by the Group. The Group thus
measures some structured issues at fair value through
profit or loss, together with some components of composite
financial instruments without splitting out embedded
derivatives that should be recognised separately.
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Securities classified in this category are initially recognised
at their market value, while transaction costs are directly
expensed. They are subsequently measured at fair value
at each balance-sheet date, and the change in fair value is
recognised in income, along with dividends from variable-
income securities and gains and losses on disposal, under
“Net gains and losses on financial instruments at fair value
through profit or loss”, which is included in Net Banking
Income (see Note 7). Income received on fixed-income
securities is recorded under “Interest and similar income”.
L.3. Financial assets held to maturity
This category includes fixed-or determinable-income
securities that the Group intends and has the ability to hold
to maturity.
Held-to-maturity investments are recorded at amortised
cost using the effective interest rate method, which includes
all premiums and discounts, as well as their purchase
costs.
Income received on these securities is recognised under
“Interest and similar income”, which is included in Net
Banking Income.
In the event that there is an objective indication of
impairment, a provision is recorded for the difference
between the book value and the estimated recoverable value
discounted at the original effective interest rate. In the event
of a subsequent improvement, the excess provision, which
is redundant, is written back.
L.4. Available-for-sale financial assets
The “Available-for-sale financial assets” category is the
default category defined by IAS 39. It includes fixed-income
securities and equities that do not fall into the two previous
categories.
Securities classified in this category are initially recognised
at their acquisition cost, plus transaction costs and accrued
coupons. At the balance-sheet date, they are measured at
fair value and any changes in that fair value are recorded
in equity under “Unrealised gains and losses on financial
instruments”.
In the event of a disposal or permanent impairment, the
unrealised gains and losses recorded in equity are reversed
in income under “Net gains and losses on available-for-sale
financial assets”.
In the event of a prolonged or material reduction in the fair
value of treasury shares, an impairment charge is recorded
on available-for-sale financial assets. The same applies to
debt securities in the event of a significant deterioration in
credit risk. The fall in the fair value of a security is deemed
to be material when an equity instrument has lost at least
40% of its value between the acquisition date and year-end.
When such objective evidence of impairment is observed,
the aggregate unrealised loss that had hitherto been
directly recognised in equity is automatically recognised in
the income statement. The fall in the fair value of a security
is assumed to be long-term when the ongoing fall extends
over a period of more than 24 months. In this case, the
Group examines whether there are grounds to recognise
the impairment charge in profit or loss, depending on the
level of significance of the unrealised losses. This approach
does not rule out the line-by-line examination of objective
evidence of impairment.
Moreover, the CNP Assurances Group uses specific
criteria to determine evidence of impairment on securities
available-for-sale as part of its insurance company
management process. These criteria are not re-estimated
when CNP Assurances is included in the Group’s
consolidated financial statements via the equity method,
in order to take account of the management and risk
framework that is inherent to CNP’s business.
For debt instruments like bonds, an impairment charge is
recorded when there is a proven counterparty risk.
Impairment losses on variable-income securities,
recognised in profit or loss, cannot be reversed while
the instrument remains on the balance sheet. They are
recorded in “Net gains or losses on available-for-sale
financial assets”. Impairment losses on fixed-income
securities can be reversed and recognised in the cost of
risk when they relate to credit risk.
L.5. Reclassification of financial assets
A financial asset with a fixed or determinable yield, which
was initially recognised in the “Available-for-sale financial
assets” category, but which is no longer tradable on an
active market after its acquisition, and which the Group
intends and is able to hold for a foreseeable period or until
maturity may be reclassified in the “Loans and Receivables”
category.
Reclassifications are carried out at market value on the
date of reclassification, and financial assets transferred in
this way are then valued according to the rules applicable to
their new category. The transfer price at the reclassification
date represents the initial cost of the asset when
determining potential impairment charges. A new effective
interest rate is then calculated in order to bring this new
balance into line with the instrument’s redemption value.
At the same time, profits and losses that were previously
recorded in equity are amortised through profit or loss
over the residual life of the instrument, using the effective
interest rate method.
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L.6. Financial derivatives (Banking activities)
Derivatives held for transaction purposes
Derivatives belong to the category of financial instruments
held for transaction purposes, except for derivatives that are
used for hedging purposes. Their fair value is recognised
in the balance sheet in “Financial instruments at fair value
through profit or loss”. Changes in fair value and interest
accrued or not due are recognised in net gains or losses on
financial instruments at fair value through profit or loss.
Hedging derivatives
Derivatives that qualify as hedging instruments according
to IAS 39 criteria are classified in the “Fair value hedges”
or “Cash flow hedges” category, depending on the
circumstances. Other derivatives are classified in “Assets
or liabilities at fair value through profit or loss” by default,
even if they have been entered into in order to hedge one or
several transactions from an economic perspective.
In order to classify a financial instrument as a hedging
derivative, the Group must establish the hedging
relationship from the outset (hedging strategy, description
of the risk hedged, the item hedged, the hedging instrument
and the method used to assess its effectiveness).
Effectiveness is assessed when the hedge is put in place
and at each balance-sheet date while it remains in place.
Depending on the nature of the hedged risk, the derivative
is designated a fair value hedge, a cash flow hedge or a
foreign exchange hedge linked to a net investment in a
foreign operation.
Fair value hedges
Fair value hedges enable exposure to fluctuations in the
fair value of financial assets or liabilities to be hedged; they
are primarily used to hedge interest-rate risk on fixed-rate
assets and liabilities and on sight deposits, according to the
options approved by the European Union.
Any revaluation of the derivative is recognised in profit
or loss in a way that mirrors the revaluation of the item
hedged. Gains or losses attributable to the hedged risk are
recognised in “Net gains or losses on financial instruments
at fair value through profit or loss” in the income statement.
As soon as the hedging relationship becomes effective,
movements in the fair value of the hedged item are
mirrored by the movements in the fair value of the hedging
instrument. Any potential ineffectiveness of the hedge is
directly recognised in the income statement. The portion
relating to the accrued income or expenses of the derivative
is recognised in “Income and interest expense” in the
income statement at the same time as the interest income
and expense relating to the hedged item.
As soon as the derivative instrument no longer meets
the effectiveness criteria specified by the standard, and
especially if it is sold, hedge accounting is prospectively
discontinued: the derivative is transferred to “Financial
assets at fair value through profit or loss” or “Financial
liabilities at fair value through profit or loss” while the
revaluation of the hedged item is amortised over the period
remaining based on the initial life of the hedge.
In the event that the hedged item is sold or redeemed,
the hedging instrument, which no longer qualifies as a
hedging instrument but still exists, remains on the balance
sheet and is accounted for at fair value through profit or
loss. A gain or loss on the sale of the hedged item may be
recognised in profit or loss.
Macro-hedges
The Group applies the provisions of IAS 39 as adopted by the
European Union to macro-hedging transactions which are
performed as part of the asset and liability management of
fixed-rate positions.
Macro-hedging instruments are primarily interest rate
swaps designed as fair value hedges for the Group’s fixed-
rate resources.
Macro-hedging derivatives are accounted for according
to the same principles as those described above. The
revaluation of the hedging component is recognised in
“Revaluation differences on portfolios hedged against
interest-rate risk”.
Cash flow hedges
Cash flow hedges are used to hedge exposure to
movements in cash flows from financial assets or liabilities,
firm commitments or future transactions. More specifically,
they are used to cover interest-rate risk on reviewable-rate
assets and liabilities.
The effective portion of movements in the fair value of a
derivative instrument is entered on a specific line in equity,
while the ineffective portion is recognised in profit or loss in
“Net gains or losses on financial instruments at fair value
through profit or loss.”
The portion corresponding to the rediscounting of the
financial derivative is entered on the income statement in
“Interest income and expenses on hedging transactions”
symmetrically to the interest income and expenses relating
to the hedged item.
The hedged instruments continue to be recognised
according to the rules applicable to their accounting
category.
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In the event of a breakdown in the hedging relationship, or
as soon as the derivative instrument no longer meets the
effectiveness criteria specified by the standard, or especially
if it is sold, the hedge accounting ceases. The aggregate
amounts entered in equity in respect of the revaluation of
the hedging derivative are gradually transferred to profit
or loss as interest income or expense, or immediately
recognised in profit or loss. In the event that the hedged
item is sold or redeemed, the derivative is reclassified in
“Financial assets at fair value through net income”, while
the revaluation of the hedged item entered in equity is
immediately recognised in profit or loss.
Embedded derivatives
An embedded derivative is a component of a hybrid contract.
It is separated out of the host contract and recognised
separately when its economic characteristics and the
related risks are not closely linked to those of the host
contract, except where the hybrid instrument is valued at
fair value through profit or loss.
Day one profit
The Group generates no profit on the trading of structured
instruments.
L.7. Guarantee commitments
Financial guarantees
A contract meets the definition of a financial guarantee if
it includes an indemnity principle according to which the
issuer shall compensate the beneficiary for losses that
the latter has suffered due to the failure of a specifically
designated creditor to make a payment on a debt
instrument.
The financial guarantees provided are valued at their initial
fair value at the date into which they were entered. They
are subsequently valued at the higher of the amount of the
commitment and the amount initially recorded, less the
commission guarantee, where applicable.
L.8. Debt (Banking activities)
Liabilities to credit institutions and customers
Liabilities to credit institutions and liabilities to customers
are broken down according to their initial maturity or
nature: sight debt (sight deposits and ordinary accounts)
or long-term debt (special scheme savings accounts).
These liabilities include securities sold under repurchase
agreements and loaned securities.
Debt evidenced by a certificate
Issued financial instruments are classified as debt
instruments where the issuer is required to pay out cash
or some other financial asset, or furthermore, to exchange
instruments on potentially disadvantageous terms. Debt
securities consist of negotiable debt securities issued by
La Banque Postale.
The debt is initially recognised at nominal value and is then
valued at amortised cost using the effective interest rate
method at subsequent balance-sheet dates.
L.9. Deconsolidation of financial assets or liabilities
Financial assets are deconsolidated when the contractual
rights to the cash flows attached to the financial asset
expire, or when those rights and virtually all the risks and
benefits of ownership have been transferred to a third party.
When certain risks and advantages have been transferred,
and while control of the financial asset is retained, that
asset remains on the balance sheet so as to reflect the
ongoing involvement in the asset concerned.
A gain or loss on disposal is then recorded in the income
statement, in an amount equal to the difference between the
book value of the asset and the value of the consideration
received.
Financial liabilities are deconsolidated when the contractual
obligation is settled, cancelled, or when it expires.
Repurchase agreements
The assignor does not derecognise the securities. The
Group records a liability that represents its commitment to
refund the cash received. This debt represents a financial
liability, which is recorded at amortised cost, and not at fair
value.
The assignee does not recognise the assets received, but
recognises a receivable on the cash loaned by the assignor.
At subsequent balance-sheet dates, the assignor continues
to value the securities according to the rules applicable to
their original category. The nominal value of the receivable
is shown in loans and receivables.
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Securities lending transactions
The lending and borrowing of securities cannot be treated
as a financial asset transfer according to IFRS. Therefore,
these transactions cannot result in the deconsolidation of
the loaned securities. They continue to be recognised in
their original accounting category and valued in accordance
with the rules of that category. Borrowed securities are not
recognised.
L.10. Insurance activities
The financial assets and liabilities of the Group’s insurance
companies are mostly valued and recognised according to
the provisions set out in IAS 39.
However, the following policies are recognised according
to IFRS 4:
insurance policies that include a contingency clause
for the policy holder. This category includes policies for
personal risk, retirement, property damage and unit-
linked savings policies with a guaranteed minimum
return;
financial contracts issued by the insurer that include a
discretionary profit-sharing (PS) clause.
In accordance with the provisions of IFRS 4, local guidelines
for valuing underwriting reserves are retained for both types
of contract.
Financial contracts governed by IAS 39 correspond to
investment contracts with no discretionary with-profits
clause, i.e. unit-linked savings policies with no euro-
denominated or minimum guarantee.
Pursuant to the “shadow” accounting principles set out in
IFRS 4, a provision for deferred profit-sharing is recorded
for insurance policies that include a discretionary with-
profits clause. This provision is determined in a way that
reflects the potential rights of policyholders to share in
unrealised gains on financial instruments valued at fair
value, or in potential losses in the event of unrealised losses
on those instruments.
At each year-end, the Group’s insurance companies perform
a liability adequacy test, which consists in checking that the
insurance liabilities recognised, net of deferred acquisition
costs and related tangible assets, are adequate on the basis
of current estimates of future cash flows from insurance
policies and from financial contracts with discretionary
profit-sharing clauses.
Underwriting and actuarial provisions
Underwriting provisions represent commitments to policy-
holders.
Actuarial provisions on euro-denominated policies
correspond to the difference between the current value of
the insurer’s and the policyholder’s commitments.
Life insurance provisions are recorded based on discount
rates that are at most equal to prudently-estimated rates
of return on the underlying assets.
The net present value of commitments is calculated
by choosing a discount rate that is at most equal to the
pricing rate of the policy involved, and by using statutory
mortality tables or tables based on experience if they
are more cautious. Lower interest rates are factored in
to investment income discount rate calculations when
the rate is deemed to be too high relative to the expected
reinvestment prospects.
Actuarial provisions on unit-linked policies are valued on
the basis of the underlying assets. Gains or losses resulting
from the revaluation of these policies are recognised in the
profit and loss statement, in order to cancel out the impact
of movements in underwriting provisions.
Active deferred profit-sharing
Most financial contracts issued to policyholders by the
Group’s life insurance subsidiaries include a discretionary
profit-sharing clause.
The discretionary profit-sharing clause grants life insurance
policyholders the right to receive a share in any realised
financial gains, as well as the income guaranteed. Pursuant
to the “shadow” accounting principles set out in IFRS 4,
the provision for deferred profit-sharing for these policies
is adjusted to reflect the policyholders’ entitlement to
any unrealised gains, or their obligation to assume their
share of unrealised losses on financial instruments valued
at fair value under IAS 39. The share of gains to which
policyholders are entitled is determined according to the
specific features of the policies likely to benefit from such
gains.
The net amount of the deferred profit-sharing established
by “shadow” accounting is recognised either in balance
sheet liabilities (net deferred profit-sharing—liabilities) or
assets (net deferred profit-sharing—assets) depending on
the situation of the entity concerned.
When recorded as an asset, deferred profit-sharing
is subject to a recoverability test. The aim of this test is
to show that the profit-sharing amount is recoverable
through sharing in future or unrealised gains, against the
background of the Group’s business continuity, and will not
result in any inadequacy of the commitments recognised by
the Group in respect of these economic commitments. The
recoverability test is performed by using current estimates
of future policy cash flows. The test is based on tools
for modelling the asset and liability management of the
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subsidiaries involved, and enables a value to be assigned
to commitments in a high number of economic scenarios
using a stochastic approach.
In accordance with the recommendation on methods for
identifying deferred profit-sharing issued by the French
National Accounting Council, or CNC, on 19 December
2008, profit-sharing recoverability is based on a prudent
assessment of the capacity for holding the assets,
particularly in terms of their future collection, in forecast
cash flows. Likewise, the capacity of future returns
to absorb unrealised losses was tested, based on an
unfavourable repurchase scenario that has never been
experienced up until now.
M. Bond debt and financial derivatives relating to the management of the bond debt
Bonds are classified in the balance sheet under both
“Medium and long-term bonds and other debt” and “Short-
term bonds and other debt”.
M.1. Bonds backed by “fixed-for-floating” swaps
As part of the Group’s strategy to manage its bonds, some
fixed-rate bonds are converted to “floating-rate bonds” via
fixed-for-floating swaps.
Depending on the circumstances, these bonds can be
designated at fair value through profit or loss or designated
as subject to fair value hedging.
Bonds designated at fair value through profit or loss
In accordance with IAS 39 and its “Fair value option”
amendment, adopted by the European Union on
15 November 2005, some bonds backed by “fixed-for-
floating” swaps are recognised at fair value through profit
or loss. The corresponding swaps are also measured at fair
value through profit or loss, in accordance with the general
rule for measuring derivatives set out in IAS 39.
Bonds designated as subject to fair value hedging
Some bonds are designated as subject to fair value hedging
through “fixed-for-floating” swaps. The application of fair
value hedge accounting leads to the recognition in profit
or loss of (i) the change in the fair value of hedging swaps,
and (ii) the change in the value of the efficient portion of the
hedging swap, as an adjustment to the value of the bond.
These effects offset one another where the effective part of
the hedge is concerned.
Moreover, depending on market developments, the Group
may refreeze the interest rates of some borrowings by
subscribing to floating-for-fixed swaps. These swaps are
also measured at fair value through profit or loss.
M.2. Bonds measured at amortised cost
Bonds not backed by “fixed-for-floating” swaps are
measured at amortised cost based on the effective interest
rate (EIR).
M.3. Forward start swaps
In some cases, La Poste subscribes to forward start swaps
to protect itself against a rise in interest rates. These cash
flow hedging instruments are terminated when the bond is
issued, which gives rise to the payment of an equalisation
balance (paid or received depending on the swap’s value).
These payments are recognised in reversible reserves as
part of the application of the cash flow hedge, and then
reversed to income over the life of the initially hedged loan,
in accordance with the provisions of IAS 39 regarding the
termination of hedges.
N. Commitments to buy out non-controlling interests
Pursuant to the provisions of IAS 32—Financial Instruments:
Presentation, Le Groupe La Poste records a financial
liability for put options granted to minority shareholders
of consolidated subsidiaries. When the value of the liability
exceeds the value of the non-controlling interests, IFRS do
not specify how the consideration should be recognised.
Le Groupe La Poste has chosen to offset the difference
between the liability and value of non-controlling interests
under reserves, Group share. Subsequent changes in debt
relating to the change in the estimated strike price of the
buy-back commitment and of the book value of the non-
controlling interests are recognised in reserves, Group
share.
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O. Inventories and work-in-progress
Inventories are valued at the lower of their purchase cost
or net realisable value. The net realisable value is the
estimated sale price in the normal course of business, less
the estimated costs necessary to complete the sale.
The value of inventories is assessed using the weighted
average cost method, and includes both the purchase cost
and the expenses incurred in bringing the inventories to
their current location and condition.
P. Trade receivables
When initially recognised, trade receivables on commercial
activities are recorded at their nominal value, which
basically corresponds to the fair value of the receivables.
Provisions are calculated on an individual basis, based on
an assessment of the risk of non-recovery.
Q. Provisions
Provisions are recorded when (i) the Group has a present
obligation (legal or implicit) towards a third party as a result
of a past event at the balance-sheet date, (ii) it is likely that
an outflow of resources representing future economic
benefits will be required to settle the liability, and (iii) a
reliable estimate can be made of the liability.
The provisions are assessed on the basis of the Group’s
expectation of the expenditure required to settle the liability,
based on management data from the information system
and on assumptions selected by the Group, supplemented,
where necessary, by experience of similar transactions
and, in some cases, by reports from independent experts
or estimates from service providers. These various
assumptions are reviewed at each balance-sheet date.
Provisions for commitments on home loan savings agreements
Home loan savings accounts and plans offered to retail
customers in accordance with the French Act of 10 July 1965
include two phases: a first phase during which deposits are
collected in the form of interest-bearing savings accounts,
and a second phase where home loans are extended.
In accordance with the provisions of IAS 37, La Banque
Postale records provisions commitments with unfavourable
consequences relating to home loan savings agreements.
These provisions relate to the obligation to pay interest on
deposits for an undetermined period of time at a rate that
is fixed when the contract is signed in the future, on the one
hand, and to the obligation to extend loans at a rate that is
fixed at the time the contract is signed, on the other.
The additions to and reversals of this provision are included
in banking operating revenue and expenses, within Net
Banking Income.
Provisions are calculated for each generation of home
loan savings schemes, without offsetting commitments for
different generations of home loan savings schemes, and
for all the home loan savings accounts representing one
generation.
During the savings phase, the commitments to be
provisioned are evaluated according to the difference
between average forecast savings deposits and minimum
forecast savings deposits, both of which are determined on
a statistical basis by factoring in historical observations on
actual customer behaviour.
During the lending phase, the commitments to be
provisioned include loans that have already been granted
but not yet released at the year-end date, as well as future
loans that are viewed as statistically likely based on balance
sheet deposits as at the calculation date and historical
observations on actual customer behaviour.
A provision is recorded when the net present value of future
income is negative for a given generation of loans.
That income is assessed on the basis of the rates offered to
retail customers on equivalent savings and lending products
that have the same term as the deposits and were agreed
on the same day.
The Group’s insurance companies record underwriting
provisions, the principles of which are set out in Chapter
L. 10 above.
R. Employee benefits
Post-employment and long-term benefits resulting from
defined benefit plans, together with their related costs,
are measured using the projected unit credit method, in
accordance with IAS 19. Annual actuarial appraisals are
carried out.
The appraisal calculations involve taking third-party
actuarial economic assumptions into account (discount
rates, inflation rates, and the rate of increase in pensions,
etc.), as well as assumptions that are specific to La Poste
(employee turnover rates, mortality rate, and the rate of
increase in salaries, etc.).
The balance sheet provision for defined benefit post-
employment plans corresponds to the present value of
the liability at the balance-sheet date less the market
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value of any plan assets where applicable (GeoPost UK).
The present value of the commitment is calculated using
the projected credit unit method on an annual basis. That
value is determined by calculating the net present value
of expected future outflows based on the market rate for
top-tier corporate bonds, denominated in the currency in
which the benefit will be paid. In addition, the term of the
selected bonds is close to the average estimated length of
the underlying commitment.
Actuarial gains and losses resulting from experience-
based adjustments and the impact of changes to actuarial
assumptions are recognised as “other comprehensive
income”.
Past service costs, which arise when a defined benefit plan
is adopted or modified, are immediately expensed.
Pension and other employee benefit arrangements are
described in Note 29 together with the main assumptions
used.
R.1. Government employees
Pension plan
The Amending Finance Act of 2006 introduced a reform in
the way in which the pensions for government employees
attached to La Poste were financed, which was applied
retroactively as at 1 January 2006. This reform is described
in Note 29 "Employee benefits".
Under the plan introduced in 2006, La Poste pays an
employer contribution, which discharges it of its liabilities.
As a result, no provision for the retirement of government
employees is recorded in the financial statements.
Up until 2005, under the Act of 2 July 1990, La Poste
was responsible for reimbursing the cost of pensions
granted to government employees working for La Poste
in accordance with the French Civil and Military Pensions
Code, where payment and cover were provided by the
French government.
R.2. Contract staff
Pension plan for contract staff of La Poste
and the French subsidiaries of Le Groupe La Poste
The pension plan for contract staff at La Poste and the
Group’s French companies is a plan known as a “defined
contribution plan”. Such plans are based on payments to
independent bodies that are responsible for paying the
amounts due to employees, thus releasing the employer
from any subsequent obligation. Therefore, once the
contributions have been paid, no liability or commitment is
shown in the Group’s financial statements. Contributions
paid to independent bodies are recognised in the period
concerned.
Retirement benefits for contract staff of La Poste
and the French subsidiaries of Le Groupe La Poste
A provision for these commitments is recorded on the
balance sheet, and is calculated according to the principles
explained above for defined benefit schemes.
Pension plans for employees of Le Groupe La Poste’s
foreign subsidiaries
A provision for these commitments is recorded on the
balance sheet, and is calculated according to the principles
explained above; it primarily applies to the GeoPost UK sub-
group.
R.3. End-of-career arrangements
La Poste records a provision for the costs of the end-of-
career arrangements made for its employees. The amount
of this provision takes into account both persons who have
enrolled in one of the existing plans, and those who are
expected to enrol on the basis of past take-up rates in
previous years and Management’s best estimates.
S. Assets held for sale
A non-current asset, or group of assets and liabilities, is
classified as being held for sale when its book value will
primarily be recovered through its sale and not its ongoing
use. This assumes that the asset is available for immediate
sale in its current state and that such a sale is highly likely
within one year.
These assets and groups of assets, along with all related
liabilities, are disclosed separately from other assets and
liabilities and are valued at the lower of book value or the
estimated sale price, net of disposal costs. These assets
cease to be depreciated or amortised from the date when
they are classified in this category.
T. Cash flow statement
In accordance with IAS 7, Le Groupe La Poste publishes
a Cash Flow Statement, which presents the inflows and
outflows of cash and cash equivalents classified under
operating, investing or financing activities.
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The format of the cash flow statement has been rearranged
in order to show the flows associated with La Banque
Postale and the flows associated with non-banking business
activities on a separate basis.
The cash flow statement presents the change in cash and
cash equivalents of non-banking activities.
La Banque Postale sub-group’s cash flows are disclosed on
a separate line in the balance sheet. Changes in those cash
flows are reflected in the “Decrease (increase) in cash and
cash equivalents from Banking activities before impact of
changes in consolidation scope” line, positioned under cash
flows from financing activities.
In addition, cash flows relating to variations of banking
assets and liabilities are combined on a separate line in
the cash flow statement (“Change in balance of banking
sources and uses”) in net cash flows from operating
activities, which specifically includes:
flows from deposits collected from Banking activities
customers;
Banking activities cash flows relating to liabilities to
credit institutions, provided these liabilities have not
been contracted for the purpose of acquiring non-
current assets;
acquisitions and disposals of securities in the Banking
activities investment portfolio;
cash flows relating to Banking activities loans and
advances;
changes in the fair value of financial instruments from
Banking activities.
Operating activities are the main revenue-generating
activities and any other activities other than those defined
as investing or financing activities.
Cash flows from operating activities are determined using
the indirect method whereby the share in profits of equity
associates is adjusted for all non-cash transactions (e.g.
net increases in depreciation, amortisation and provisions
other than those relating to current assets, changes in
deferred taxes and changes in the operating working capital
requirement), deferrals or adjustments relating to past or
future operating cash inflows or outflows, and all income
and expenses associated with cash flows from investing and
financing activities.
Investing activities relate to the acquisition or disposal
of non-current assets and to any other investments not
included in cash and cash equivalents.
Le Groupe La Poste’s cash flows from investing activities
consist mainly in acquisitions or disposals of the following:
intangible and tangible assets, adjusted for non-cash
transactions (accounts receivable or payable on non-
current assets);
equity investments in other companies;
other financial assets (guarantees and deposits, and
receivables on investments, etc.).
The impact of changes in the consolidation scope on cash
flows is presented on a separate line “Impact of changes in
consolidation scope”.
Financing activities relate to transactions that affect the
amount and composition of equity and debt.
Cash flows from financing activities include sources
of financing (new borrowings) and related outflows
(distribution of dividends to minority shareholders, La Poste
savings bond redemptions and debt repayments), other than
those related to the banking operations of the La Banque
Postale sub-group, which are included in “Change in the
balance of banking sources and uses” (see above).
The concept of cash and cash equivalents includes very
short-term liquid investments that can be readily converted
into known amounts of cash and are subject to a negligible
risk of change in value.
Le Groupe La Poste’s cash and cash equivalents include
cash in hand, bank debit balances, term deposits and
marketable securities that do not carry any material risk
of changes in value and can be readily converted into cash
(particularly money-market UCITS), and the portion of bank
credit balances and related interest accrued relating to
temporary overdrafts.
Regardless of their characteristic features, securities in the
“Banking activities investment portfolio” are never classified
as cash. The flows pertaining to them are included in the
“Change in the balance of banking sources and uses” line
in the cash flow statement (see above).
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NOTE 4 Changes in the consolidation scope
4.1 Main newly-consolidated companies
4.2 Deconsolidated companies
4.3 Income statement at constant scope and exchange rates
The scope of consolidation is shown in Note 41.
4.1 Main newly-consolidated companies
Acquisition of BPE
Acquisition of 100% of BPE (formerly Banque Privée
Européenne) on 2 April 2013 after the spin-off of wealth
management activities at Crédit Mutuel Arkéa, for an
acquisition cost of €115 million. Since the valuation at fair
value of the assets and liabilities acquired has not been
completed, the goodwill presented in the accounts (nearly
0) is provisional in nature. This acquisition is part of the
development of the Bank's private banking area and will
boost the range of the offer for this segment.
4.2 Deconsolidated companies
None.
4.3 Income statement at constant scope and exchange rates
(€ million)
Reported net profit/(loss)
Restated net profit/(loss) excluding scope
and exchange rate effects
2013 2012 2013 2012
Revenues and NBI 22,084 21,658 21,741 21,524
Purchases and other expenses (7,362) (7,108) (7,124) (7,014)
Personnel expenses (12,524) (12,599) (12,434) (12,573)
Taxes and levies (236) (235) (234) (235)
Depreciation, amortisation and provisions (1,306) (1,175) (1,294) (1,173)
Other current operating revenue and expenses 130 224 127 224
Pre-tax gains and losses on asset disposals (16) 52 (15) 52
Net operating expenses (21,314) (20,842) (20,974) (20,717)
Operating profit/(loss) 770 816 767 807
The restated net profit/(loss) eliminates the effect of all acquisitions made during the current year and the prior year’s
acquisitions concluded during the year. It also shows foreign currency transactions from the prior year at the average rate
during the current year.
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NOTE 5 Segment reporting
5.1 Definition of operating segments
5.2 Operating segment reporting
5.3 Geographical information
5.1 Definition of operating segments
The definition of operating segments for the purpose
of segment reporting is based on Le Groupe La Poste’s
current management organization. A business segment is
a distinguishable component for which separate financial
information is available and regularly reviewed by Group
Management for the purpose of allocating resources to the
segment and assessing its performance.
The criteria selected to define business segments
specifically include:
the nature of the products distributed;
the type or class of customer for whom they are
intended;
the production process and distribution network;
the regulatory environment.
Le Groupe La Poste has seven operating segments: Mail,
Parcels, Express, Banking activities, Real estate, La Poste
Retail Brand, and Shared Services. For the presentation
of its segment reporting, the Group chose to combine the
“Parcels” and “Express” segments, as these have similar
economic characteristics.
The Mail Business Line includes all of La Poste’s Mail
business (i.e. pick-up, sorting and delivery of letter
posts, advertising and press publications), as well as the
companies of the Sofipost sub-group.
Parcels & Express
The Parcels Business Line corresponds to all activities
carried out by La Poste under the ColiPoste brand.
The Express Business Line includes the GeoPost sub-
group’s brands, primarily DPD, Chronopost, Exapaq and
Seur.
Banking activities
The Banking activities segment includes the Banking and
Insurance activities of the La Banque Postale sub-group,
as well as the services provided by some La Poste staff to
La Banque Postale under service agreements.
La Poste Retail Brand
The La Poste Retail Brand segment encompasses the
sale and distribution activities intended for the general
public, the La Poste Mobile activities, Le Groupe La Poste’s
products and services, and other non-Group products.
Real estate
This segment manages all of the Group’s real estate assets
held by the Poste Immo sub-group, and also includes the
activities of the La Poste real estate Department.
Shared Services
This segment includes the “Corporate” activities of the
Group’s head office and Support Services Departments.
5.2 Operating segment reporting
The accounting principles applied to segment reporting
are the same as those used for the consolidated financial
statements, as described in Note 3.
The profits (losses), assets and liabilities that have been
allocated to the business segments are those profits
(losses), assets and liabilities that can be allocated directly
and indirectly to business segments.
The amounts unallocated to the business segments
primarily correspond to:
the net cost of regional development;
the cost of the accessibility constraint imposed on
La Poste (since 2011 and the complete end of postal
monopoly). This cost was previously allocated to the Mail
Business Line;
financial profit/(loss) and tax.
Segmentation of revenues: the segmentation of La Poste’s
revenue between the Mail and Parcels businesses is based
on accounting data and on a statistical analysis of the mail
and parcel volumes transported and delivered by the two
businesses.
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No Group customer accounts for more than 10% of
consolidated revenues.
Segmentation of operating expenses: given that the Mail,
Parcels, Banking activities and La Poste Retail Brand
segments coexist within La Poste, and that their production
processes are highly inter-connected, La Poste has set out
cost accounting principles in order to allocate shared costs
between these various segments and thereby determine
each segment’s profit (loss).
La Poste’s management accounting system operates on the
basis of the following principles:
The main services shared between the Mail and Parcels
segments (collection, sorting, transportation and
delivery) are re-invoiced on the basis of a price per item
or a lump sum.
The expenses for the La Poste Retail Brand post office
counters are re-invoiced to the businesses that use the
network on the basis of service agreements, where the
pricing mechanisms are based on measurable operating
metrics (revenues, and statistics measuring the time
required to perform various transactions, etc.).
Segmentation of non-current assets: intangible and
tangible assets are divided based on the allocation of the
corresponding assets for each business in La Poste’s
accounting system. The real estate assets held by La Poste
and the Poste Immo sub-group are allocated to the real
estate segment in their entirety.
A. Income statement by operating segment
2013
(€ million) Mail
Parcels &
ExpressBanking
activitiesRetail Brand
Real estate
Shared Services
Unalloca-ted (a) Eliminations Total
Non-Group revenue and NBI 10,461 5,947 5,522 92 62 22,084
Inter-segment revenue and NBI 642 41 17 4,138 845 825 (6,509)
Operating revenue 11,103 5,988 5,539 4,230 908 825 (6,509) 22,084
Operating profit/(loss) 471 419 708 34 135 (211) (719) (67) 770
Financial profit/(loss) (223) (223)
Income tax (127) (127)
Share in profits
of equity associates 10 3 200 2 215
Consolidated net profit/(loss) 635
Depreciation, amortisation,
provisions and impairment (221) (147) (485) (72) (241) (140) 0 (1,306)
(a) Primarily includes the contribution to regional development (including the costs relating to the accessibility constraint), financial profit/(loss) ,
and income tax.
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2012
(€ million) Mail
Parcels &
ExpressBanking
activitiesRetail Brand
Real estate
Shared Services
Unalloca-ted (a) Eliminations Total
Non-Group revenue and NBI 10,774 5,538 5,217 88 41 21,658
Inter-segment revenue and NBI 636 42 24 4,143 809 840 (6,496)
Operating revenue 11,410 5,580 5,241 4,231 851 840 (6,496) 21,658
Operating profit/(loss) 684 403 621 16 109 (188) (832) 3 816
Financial profit/(loss) (284) (284)
Income tax (231) (231)
Share in profits
of equity associates (3) 6 176 1 180
Consolidated net profit/(loss) 481
Depreciation, amortisation,
provisions and impairment (237) (162) (335) (73) (223) (145) (1,175)
(a) Primarily includes the contribution to regional development (including the costs relating to the accessibility constraint), financial profit/(loss) , and
income tax.
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B. Balance sheet by operating segment
As at 31 December 2013
ASSETS
(€ million) MailParcels &
ExpressBanking
activities
La Poste Retail Brand
Real estate
Shared Services Eliminations Total
Intangible and tangible assets 1,100 2,214 1,005 138 3,350 550 (12) 8,345
Equity associates 11 69 2,522 31 2,634
Other non-current assets 26 46 203 10 (11) 4,229 (3,410) 1,094
Current assets 1,792 1,071 196,066 669 759 3,689 (1,442) 202,604
Total 2,930 3,401 199,796 818 4,129 8,468 (4,864) 214,677
Investments (a) 180 266 (525) 34 246 985 1,187
LIABILITIES
(€ million) MailParcels &
ExpressBanking
activities
La Poste Retail Brand
Real estate
Shared Services Eliminations Total
Shareholders’ equity 8,516 8,516
Bonds and other financial debt
(current and non-current) 308 784 3 26 1,657 7,309 (2,985) 7,103
Other non-current liabilities 828 248 217 517 56 67 1,933
Other current liabilities 2,204 976 193,341 692 366 987 (1,441) 197,125
Total 3,340 2,008 193,561 1,235 2,079 16,880 (4,426) 214,677(a) Purchase of intangible and tangible assets, and impact of changes in the scope of consolidation.
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As at 31 December 2012
ASSETS
(€ million) MailParcels &
ExpressBanking
activities
La Poste Retail Brand
Real estate
Shared Services Eliminations Total
Intangible and tangible assets 1,181 2,084 883 157 3,616 541 (12) 8,450
Equity associates 15 71 2,327 33 2,446
Other non-current assets 28 66 109 10 9 3,660 (2,875) 1,007
Current assets 1,750 936 192,152 784 652 3,938 (1,570) 198,641
Total 2,973 3,156 195,471 951 4,311 8,139 (4,457) 210,544
Investments (a) 270 197 205 37 302 173 1,184
LIABILITIES
(€ million) MailParcels &
ExpressBanking
activities
La Poste Retail Brand
Real estate
Shared Services Eliminations Total
Shareholders’ equity 7,535 7,535
Bonds and other financial debt
(current and non-current) 316 786 18 1,661 7,805 (2,934) 7,652
Other non-current liabilities 856 201 209 556 47 77 1,947
Other current liabilities 2,191 842 189,492 691 388 946 (1,140) 193,410
Total 3,363 1,829 189,701 1,265 2,096 16,363 (4,074) 210,544(a) Purchase of intangible and tangible assets, and impact of changes in the scope of consolidation.
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5.3 Geographical information
Revenues are broken down on the basis of paying customers’ location.
Le Groupe La Poste’s net non-current assets have been broken down by geographical area based on the location of the legal
entities that own the assets.
As at 31 December 2013
(€ million) FranceEuropean Union
(excluding France) Other Total
Revenues from commercial activities 12,678 3,276 608 16,562
Net Banking Income 5,522 - - 5,522
Operating revenue 18,200 3,276 608 22,084
Segment assets 214,028 478 171 214,677
Investments 1,056 124 7 1,187
As at 31 December 2012
(€ million) FranceEuropean Union
(excluding France) Other Total
Revenues from commercial activities 12,875 3,065 500 16,441
Net Banking Income 5,217 - - 5,217
Operating revenue 18,093 3,065 500 21,658
Segment assets 210,062 386 95 210,544
Investments 1,041 133 10 1,184
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Notes to the income statement
NOTE 6 Revenues
6.1 Mail revenue
6.2 Parcels & Express revenue
6.3 Other revenues
Le Groupe La Poste’s revenues from commercial activities are generated by the Mail (domestic and international), Express
and Parcels segments as well as by the La Poste Retail Brand and the real estate segment. These revenues broke down
as follows:
(€ million) 2013 2012
Mail revenue 10,461 10,774
Of which Domestic mail 9,692 9,993
Of which International mail 770 781
Express revenue 4,379 4,016
Parcels revenue 1,567 1,522
La Poste Retail Brand revenue 92 88
Real estate revenue 62 41
Total 16,562 16,441
6.1 Mail revenue
Domestic Mail revenue broke down as follows:
(€ million) 2013 2012
Correspondence and other La Poste products and services 6,688 6,928
Advertising mail 1,401 1,514
Press 679 701
Other products and services of the subsidiaries 923 851
Total 9,692 9,993
“Press” revenue include contractual compensation paid
in consideration for the reduced tariffs granted to press
organizations as well as the compensation of press
operators.
“Other Products and Services” of the subsidiaries consist
mainly of the following companies’ revenues:
€351 million from Mediapost, the leader in unaddressed
advertising mail and a specialist in geo-marketing
(€343 million in 2012);
€66 million from Docapost BPO IS (formerly Dynapost),
a specialist in the integrated processing of business mail
(€64 million in 2012);
€106 million from Docapost DPS (formerly Asphéria) and
Orsid, which specialise in electronic publishing solutions
and industrial document processing (€112 million in
2012);
€163 million from Docapost BPO SAS (formerly Extelia),
which specialises in industrial document and data
processing (€163 million in 2012).
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International Mail revenue broke down as follows:
(€ million) 2013 2012
Terminal fees 162 179
Mail franked at post office counters 120 129
Other International Mail products 488 473
Total 770 781
Terminal fees are the payments received by La Poste for
delivering mail from abroad in France. They are determined
on the balance-sheet date based on estimates of the weight
and number of items delivered known at that date.
Other international Mail products consisted of:
€220 million in revenue earned from businesses and the
public sector for La Poste (€206 million in 2012);
€268 million in revenue from the international unit
companies (€266 million in 2012).
6.2 Parcels & Express revenue
Revenue from the Express segment is earned entirely by the GeoPost sub-group, and is broken down as follows:
(€ million) 2013 2012
Express France 1,089 1,016
Express Rest of World 3,291 2,999
Total 4,379 4,016
Revenue from the Parcels segment broke down as follows:
(€ million) 2013 2012
Parcels franked at post office counters 462 455
Other Parcels products 1,105 1,066
Total 1,567 1,522
The other Parcels products are generated by the ColiPoste
business, the La Poste parent company in-house operator,
with companies and local authorities.
6.3 Other revenues
La Poste Retail Brand revenue include the revenues of
La Poste Mobile, as well as commissions received on third-
party sales (excluding Mail, Parcels and Financial Services)
carried out at post office counters (such as telephone card
sales) and on sales of miscellaneous products.
Real estate revenue corresponds to the rentals agreed with
non-Group tenants.
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NOTE 7 Net Banking Income
The Group’s Net Banking Income broke down as follows:
(€ million) 2013 2012
Interest and similar income 5,656 6,103
Interest and similar income on treasury and inter-bank transactions 2,037 2,427
Interest and similar income on customer transactions 2,095 1,856
Interest on available-for-sale financial assets held to maturity, and on hedging
transactions 1,524 1,820
Interest and similar expenses (2,380) (3,287)
Interest and similar expenses on treasury and inter-bank transactions (35) (23)
Interest and similar expenses on customer transactions (2,084) (2,722)
Interest on debt evidenced by a certificate and hedging transactions (261) (542)
Commission income 2,279 2,144
Commission expenses (231) (237)
Net gains and losses on financial instruments at fair value through profit or loss 23 244
Net gains and losses on available-for-sale assets 129 163
Margin on insurance activities 85 76
Income and expenses from other activities (39) 11
Total 5,522 5,217
Total income 8,248 8,815
Total expenses (2,726) (3,597)
NOTE 8 Purchases and other external expenses
Purchases and other expenses broke down as follows:
(€ million) 2013 2012
External services and general sub-contracting 1,539 1,523
Purchases 634 652
Outsourced transport 3,216 2,995
International mail delivery services 160 173
Rental expenses 744 690
Maintenance and repair costs 401 398
Telecommunications expenses 134 139
Travel and assignments 187 183
Other expenses 346 357
Total 7,362 7,108
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NOTE 9 Personnel expenses and headcount
9.1 Personnel expenses
9.2 Headcount
9.1 Personnel expenses
A breakdown of personnel expenses by type of cost is provided below:
(€ million) 2013 2012
Wages and salaries, bonuses and allowances 8,640 8,521
Pension contributions 1,398 1,367
Other social security contributions 1,789 1,751
Employee welfare costs 210 203
CICE revenue (255)
Change in post-employment provisions 1 (6)
Change in provisions for social security contingencies and staff litigation 22 3
Change in other employee provisions (96) (47)
Compensation-based taxes and duties 814 807
Total 12,524 12,599
The “Pension contributions” line item corresponds
to contributions paid in to post-employment defined
benefits plans. Following the implementation of the new
funding arrangements for the pensions of government
employees, this line item primarily includes the full
discharge contribution provided for by law.
The “CICE revenue” line item corresponds to the Tax
Credit to promote Competitiveness and Employment
(CICE) which was implemented in 2013 (see Note 1.2).
9.2 Headcount
The Group’s average headcount has changed as follows:
(full-time employee equivalents per year) 2013 2012
Average headcount 266,369 266,618
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NOTE 10 Taxes and levies
Taxes and levies consist of the following items:
(€ million) 2013 2012
Local taxes 152 150
Other taxes and levies 84 86
Total 236 235
La Poste benefits from favourable local tax treatment
in consideration for La Poste’s obligation to serve the
entire French territory, and its contribution to regional
development (Act of 2 July 1990, as rearranged by the Act
of 9 February 2010).
In this regard, La Poste enjoyed an 85% reduction in its
corporate tax base in the property tax base for its business
premises, as well as a 78% reduction on the added value
used for the purposes of calculating the Corporate Value-
Added Contribution (CVAE) (Article 1635 sexies of the French
General Tax Code and Decree No.2012-1480 of 27 December
2012).
Local business tax (CET) is recognised under “Local taxes”.
NOTE 11 Depreciation, amortisation, provisions and impairment
Changes in depreciation, amortisation, provisions and impairment that had an impact on operating profit/(loss) broke down
as follows:
(€ million) 2013 2012
Net depreciation and amortisation
Intangible assets 269 251
Tangible assets 727 708
996 960
Net provisions and impairment
Goodwill 19
Other non-current assets 10 18
Inventories 0 1
Accounts receivable 4 8
Losses on unrecoverable receivables 24 19
Provisions for contingencies and losses 118 (3)
156 63
Cost of risk (Banking activities)
Cost of risk and other impairments charges and risks (Banking activities) (a) 50 (45)
Banking activities cost of risk—unrecoverable receivables 105 197
154 152
Total 1,306 1,175(a) Including €15 million in impairments related to the Greek sovereign debt crisis in 2012.
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The impairment of goodwill is broken down in Note 15.3.
A description of the changes in the depreciation,
amortisation and impairment of non-current assets is
provided in Notes 16 and 17.
A breakdown of changes in the impairment of inventories
and accounts receivable is provided in Notes 21 and 22.
Changes in provisions for contingencies and losses are
detailed in Note 26.
NOTE 12 Other operating revenue and expenses
Other operating revenue and expenses broke down as follows:
Income/(expenses)(€ million) 2013 2012
Capitalised production 102 112
Production transferred to inventories (14) 40
Royalties (26) (22)
Revenue recorded following an acquisition of control (a) 1 14
Accretive effect of the CNP Assurances capital increase (b) 8 14
Other current operating revenue and expenses 59 65
Total 130 224(a) In 2012, this amount included €7 million relating to the acquisition of control over Seur SA and €6 million relating to the acquisition of control over IBC.
(b) See Note 18.1.
Capitalised production primarily consists of IT development costs recognised as intangible assets.
NOTE 13 Financial profit/(loss)
13.1 Cost of net financial debt
13.2 Other financial items
13.1 Cost of net financial debt
(€ million) 2013 2012
Interest expense on financing transactions (a) (194) (193)
Change in the fair value of borrowings and debt-related swaps (b) (24) (61)
Income from cash and cash equivalents (c) 20 33
Total (198) (221)(a) Including interest and proceeds from the termination of debt-related derivatives.
(b) Including fair value hedges on borrowings.
(c) Including changes in the fair value of cash or financial assets.
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The measurement of the bonds recognised at fair value
through profit or loss using the fair value option as at
31 December 2013 takes into account the decrease in the
cost of credit risk experienced in 2013. This change resulted
in an increase in the fair value of the bonds recognised in
the financial statements according to the fair value through
profit or loss method and, had a negative €51 million impact
on 2013 financial profit/(loss).
The decrease in the cost of credit risk in 2012 had a negative
€45 million impact on financial profit/(loss) in that year.
13.2 Other financial items
Discounting expenses
(€ million) 2013 2012
Provisions for employee benefits and return on plan assets (37) (67)
Other provisions (0) (1)
Total (37) (68)
Other financial income and expenses
(€ million) 2013 2012
Net foreign exchange gains 4 0
Additions to and reversals of provisions 6 2
Other financial income and expenses 2 3
Total 12 5
NOTE 14 Income tax
14.1 Income tax expense recognised in income
14.2 Tax on other comprehensive income
14.3 Tax proof
14.4 Deferred tax recognised on the balance sheet
14.5 Breakdown of deferred tax by type
14.6 Unrecognised deferred tax assets
14.1 Income tax expense recognised in income
(€ million) 2013 2012
Current tax (expense) (139) (235)
Deferred tax income/(expense) 11 4
Total tax income/(expense) (127) (231)
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The current tax expense represents the amount paid or payable in the short-term to the tax authorities in respect of the
financial year, based on the rules prevailing in the various countries and on specific tax conventions.
14.2 Tax on other comprehensive income
(€ million) 2013 2012
Change in unrealised gains and losses on financial instruments
Amount before tax 41 344
Tax impact (8) (128)
Amount net of tax 32 216
Translation adjustments
Amount before tax (31) 7
Tax impact
Amount net of tax (31) 7
14.3 Tax proof
The explanation of the tax reconciliation is as follows:
(€ million) 2013 2012
Net profit/(loss), Group share 627 479
Share in profits of equity associates (215) (180)
Corporation tax 127 231
Non-controlling interests 8 2
Consolidated profit (loss) before tax and share in profits of equity associates 548 532
Theoretical tax expense (at 38% in 2013 and 36.10% in 2012) (a) (208) (192)
Prior tax-loss carry forwards deducted during the financial year 3 2
Unused tax losses created during the financial year (12) (21)
Limitation and creation of deferred tax assets 0 (32)
Limitation and creation of deferred tax assets on the Home Loan Savings provision 4 (49)
Tax rate differential for foreign subsidiaries 30 24
Tax benefits, tax credits and foreign tax allowances 12 13
Impairment (7)
Contribution revaluations and gains 16
Cancellation of internal gains/(losses) 11
Tax on distributed revenue (5)
Permanent differences 51 3
Other Items (2)
Tax restatements 81 (39)
Actual tax charge (127) (231)(a) Including the 3.3% social solidarity contribution and the one-off contribution of 10.7% in 2013 and 5% in 2012.
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14.4 Deferred tax recognised on the balance sheet
(€ million)Deferred
tax assetsDeferred
tax liabilities Total
31/12/2011 205 103 102
Impact on net profit/(loss) (2) (6) 4
Reclassifications 26 26
Impact on equity (118) 12 (130)
Change in consolidation scope 2 7 (5)
31/12/2012 113 142 (29)
Impact on net profit/(loss) 31 20 11
Reclassifications (3) (3) 0
Impact on equity 7 7
Change in consolidation scope 4 7 (3)
31/12/2013 153 166 (14)
Net tax assets are limited to each tax entity’s ability to recover its assets in the near future.
14.5 Breakdown of deferred tax by type
(€ million) 31/12/2013 31/12/2012
Deferred tax assets
Employee benefits 394 377
Other non-deductible provisions 45 47
Other timing differences 95 101
Swaps and similar 20 30
Tax loss carry-forwards 3 2
Other tax timing differences 14 7
Asset/liability offsets (a) (419) (452)
Total assets 153 113
Deferred tax liabilities
Regulated provisions 117 120
Revaluation of contributions to Poste Immo 162 170
IAS 32-39 Financial instruments 93 119
Deductible goodwill 129 113
Other tax timing differences 84 72
Asset/liability offsets (a) (419) (452)
Total liabilities 166 142(a) Deferred tax assets and liabilities are offset for each tax entity or tax consolidation group.
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14.6 Unrecognised deferred tax assets
Type and amount of unrecognised deferred tax asset bases
(€ million)
31/12/2013
French companies in the tax
consolidation group
Non-consolidated French
companiesForeign
companies Total
Home Loan Savings Provision 293 293
Employee benefits 828 828
Other timing differences 3 2 7 12
Ordinary tax losses 179 58 237
Total 1,124 181 65 1,370
Unrecognised deferred tax asset bases amounted to €1,330 million as at 31 December 2012.
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Notes to the balance sheet
NOTE 15 Goodwill
15.1 Breakdown of goodwill
15.2 Change in the net book value of goodwill
15.3 Impairment
15.1 Breakdown of goodwill
(€ million)CGU Segment
Net book value as at 31/12/2013
Net book value as at 31/12/2012
GeoPost Central Europe Express 466 462
Exapaq Express 334 334
GeoPost Spain Express 248 238
GeoPost UK Express 130 133
Mediapost Mail 115 120
Sogec 44 44
Adverline 23 27
Mediapost 24 24
Media Prisme 15 15
Cabestan 9 9
Docapost Mail 82 82
Docapost BPO formerly Extelia) 47 47
Orsid 22 22
Sefas 8 8
Other Docapost unit companies 6 6
DPD Laser Finance Express 39 50
Viapost Mail 39 45
Morin 28 34
Orium 11 11
Asendia Mail 30 30
Tocqueville Group Banking activities 27 27
Tigers Express 23
DTDC Express 19
Other Express companies Express 26 32
Other banking companies Banking activities 8 8
Other 2 2
Total 1,587 1,562
Mail 266 277
Express 1,284 1,249
Banking activities 36 36
Other 2 2
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15.2 Change in the net book value of goodwill
(€ million) 2013 2012
Opening balance 1,562 1,417
Of which:
Gross amount 1,698 1,534
Impairment (136) (117)
Acquisitions 53 167
Disposals (1)
Reclassifications and other (9) (2)
Translation adjustments (19) 1
Impairment (19)
Closing balance 1,587 1,562
Of which:
Gross amount 1,722 1,698
Impairment (135) (136)
The main addition to goodwill during the financial year
relates to the acquisition of Tigers, a company specialised
in freight forwarding that is based in Hong Kong, resulting
in goodwill of €23 million.
15.3 Impairment
Le Groupe La Poste tests goodwill for impairment annually
or more frequently if events or changes indicate that it may
be impaired. This annual impairment test is carried out in
the last quarter of each year.
Impairment tests are also carried out on intangible and
tangible assets where there is an indication they may have
been impaired.
Impairment of goodwill
Goodwill is allocated to Cash Generating Units as follows:
Mail segment: one CGU for each business unit and for
certain subsidiaries;
Express segment: one CGU per geographical area, and
one CGU for the Exapaq group;
Banking activities segment: one CGU per business unit.
This impairment test involves comparing the net book value
of the CGUs, including any goodwill, to their recoverable
value.
To determine the recoverable value of a CGU, the Group
calculates its value-in-use, based on the valuation of the
discounted cash flows the CGU will generate in future years.
This assessment reflects the most recent information that
the Group has used for its in-house planning processes
and drawing for up its budget. It is also based on discount
rates that reflect the CGU’s credit profile and risk profile.
This approach is supplemented by a valuation using the
multiples method to the extent that sufficient information
is available.
If the CGU’s recoverable value falls below its net book
value, an impairment is recognised and initially charged to
goodwill.
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The main assumptions used for the Group’s impairment tests are as follows:
Discount rate Standard growth rate
Number of projected yearsSegment Euro zone Other
2013
Mail 7% to 7.8% 7.0% 2% 5
Express 6.4% to 9% 7.1% to 10.9% 2% 5
Banking activities 7.7% - 1% 5
2012
Mail 7% to 8.6% - 2% 5
Express 7% to 10% 7% to 12.6% 2% 5
Banking activities 10.3% - 2% 5
The tests performed on the Group’s goodwill in 2013 did not
lead to the recording of any impairment.
For the year ended 31 December 2012, the Group had
recognised impairment on GeoPost Spain (Express
segment) for an amount of €19 million.
Sensitivity analysis
A one point increase in the discount rate or a half point
decrease in the growth rate in perpetuity would not have
had a material impact on the results of the impairment
tests as at 31 December 2013.
Impairment of intangible and tangible assets
An impairment test was carried out on La Poste’s Mail
CGU as at 31 December 2013, following the identification
of indications of impairment. This test did not reveal any
impairment as at 31 December 2013.
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NOTE 16 Intangible assets
(€ million)
Software, patents and
licences
Intangible assets in progress
Other intangible
assets Total
GROSS AMOUNT
Balance as at 31/12/2011 1,252 159 702 2,113
Acquisitions 65 144 56 266
Disposals (14) (1) (6) (21)
Change in consolidation scope 40 0 34 75
Transfers 79 (104) 27 2
Balance as at 31/12/2012 1,424 198 814 2,435
Acquisitions 52 147 40 239
Disposals (310) (26) (10) (346)
Change in consolidation scope 6 (0) 13 18
Transfers 101 (140) 56 17
Balance as at 31/12/2013 1,272 179 912 2,364
DEPRECIATION AND IMPAIRMENT
Balance as at 31/12/2011 (929) N/A (397) (1,326)
Depreciation for the year (162) (89) (251)
Impairment (13) (13)
Reversals on disposals 14 5 19
Change in consolidation scope (32) (6) (38)
Balance as at 31/12/2012 (1,122) N/A (488) (1,610)
Depreciation for the year (172) (97) (269)
Impairment 0 0
Reversals on disposals 323 10 332
Change in consolidation scope (1) 0 (1)
Balance as at 31/12/2013 (973) N/A (575) (1,547)
NET AMOUNT
As at 31/12/2012 301 198 326 825
As at 31/12/2013 299 179 338 816
The “transfer” lines relate to the commissioning of assets.
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NOTE 17 Tangible assets
(€ million)Land and buildings
Machinery and
equipment VehiclesOther tangible
assetsAssets under construction Total
GROSS AMOUNTBalance as at 31/12/2011 4,723 2,363 777 2,764 289 10,915Acquisitions 27 78 145 183 387 820
Disposals (135) (205) (105) (174) (8) (626)
Change in consolidation scope 17 34 3 27 0 80
Transfers 226 42 18 117 (424) (22)
Translation adjustments 4 2 (0) 1 2 9
Balance as at 31/12/2012 4,861 2,315 838 2,918 245 11,176Acquisitions 17 106 168 157 321 769
Disposals (92) (65) (126) (173) (1) (456)
Change in consolidation scope 12 9 1 10 0 33
Transfers 90 144 2 89 (382) (57)
Translation adjustments (4) (2) (5) (2) (1) (12)
Balance as at 31/12/2013 4,884 2,508 878 3,000 183 11,453
DEPRECIATION AND IMPAIRMENTBalance as at 31/12/2011 (968) (1,568) (367) (1,916) N/A (4,820)Depreciation for the year (186) (181) (88) (253) (708)
Impairment (8) (5) (12)
Reversals of impairment 7 (0) 0 7
Reversals on disposals 29 197 78 161 465
Change in consolidation scope (7) (22) (2) (23) (55)
Transfers 13 1 (0) (2) 12
Translation adjustments (1) (1) (0) (1) (3)
Balance as at 31/12/2012 (1,122) (1,575) (383) (2,034) N/A (5,114)Depreciation for the year (198) (181) (91) (257) (727)
Impairment (23) (5) (28)
Reversals of impairment 18 (0) 0 0 18
Reversals on disposals 32 62 91 164 350
Change in consolidation scope (3) (17) (1) (2) (23)
Transfers 25 (17) 1 (1) 8
Translation adjustments 1 1 2 1 5
Balance as at 31/12/2013 (1,269) (1,726) (388) (2,129) N/A (5,512)
NET AMOUNTAs at 31/12/2012 3,739 740 454 884 245 6,062As at 31/12/2013 3,614 782 491 871 183 5,941
Of which finance leases
As at 31/12/2012 51 20 13 7 91
As at 31/12/2013 48 27 12 5 92
The transfer lines correspond to the commissioning of assets and to the reclassification of certain tangible assets to “assets
held for sale” (see Note 24).
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NOTE 18 Equity associates
18.1 Change in investments in associates
18.2 Summary of financial information on CNP Assurances
18.1 Change in investments in associates
(€ million)CNP
Assurances XangeOPCI
AkateaYurtici Kargo Other Total
Balance as at 31/12/2011 1,945 17 18 38 29 2,048
Group share in the profits of equity associates 176 (3) 1 5 1 180
Dividend payments(a) (3) (3) (2) (8)
Net change in the fair value of financial
instruments and AFS securities 221 1 (0) 222
Change in consolidation scope (0) 2 2
Capital increase (2) 10 1 10
Transfers and reclassifications 7 7
Translation adjustments (23) 1 0 (22)
Accretive effect of the capital increase 14 14
Other (7) (7)
Balance as at 31/12/2012 2,327 14 33 41 32 2,446
Group share in the profits of equity associates 200 11 2 4 (1) 215
Dividend payments (1) (4) (4) (1) (9)
Net change in the fair value of financial
instruments and AFS securities 26 (4) 0 22
Impairment
Change in consolidation scope 9 9
Capital increase (13) 3 (11)
Transfers and reclassifications 0 0
Translation adjustments (36) (8) 0 (44)
Accretive effect of the capital increase 8 8
Other (2) (2)
Balance as at 31/12/2013 2,522 8 31 33 40 2,634(a) The Group chose to receive the stock dividend from CNP Assurances in 2013 (as in 2012), which resulted in the acquisition of 17,504,455 new shares
of CNP Assurances, thus causing its interest to rise to 20.15% (compared to 19.98% as at 31 December 2012). This transaction resulted in a profit of
€8 million being recognised in income, compared to €14 million in 2012 (see Note 12).
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18.2 Summary of financial information on CNP Assurances
(on a 100% basis, in € million) 31/12/2013 31/12/2012
Revenue from ordinary activities 42,627 43,524
Profit for the year (Group share and non-controlling interests) 1,323 1,258
Equity (Group share and non-controlling interests) 15,994 15,588
Total assets 365,984 353,216
The fair value of the Group’s investment in CNP Assurances as at 31 December 2013, based on the market price at that date,
was €2,060 million.
NOTE 19 Other financial assets
(€ million)
31/12/2013 31/12/2012
Current Non-current Current Non-current
Unconsolidated investments 185 164
Provisions for unconsolidated investments (30) (33)
Deposits and guarantees paid 39 17 53 15
Financial derivatives 129 290 87 464
Loans for local authority housing 4 76 4 79
Provisions for loans for local authority housing (33) (36)
Financial assets held for investment purposes 252 404 629 186
Other financial assets 7 43 9 64
Provisions for other financial assets (0) (8) (2) (9)
Total 430 942 781 891
Unconsolidated equity investments
(€ million)
31/12/2013 31/12/2012
Percentage held Gross amount Net amount Net amount
Crédit Logement 6% 98 98 81
Xange Capital 2 40% 12 12 12
Asset Management LAB 100% 5 5 5
Other 70 39 32
Total 185 155 131
The wholly-owned unconsolidated investments comprise wholly-owned dormant companies, companies in the process of
being liquidated or companies with non-material balance sheets and income statements.
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Deposits and guarantees
This line primarily corresponds to the security deposits paid
in respect of financial instruments put in place to manage
bond debt (€35 million as at 31 December 2013, compared
with €48 million as at 31 December 2012).
Financial derivatives
The financial derivatives line represents instruments put
in place to manage the interest rate and currency risks on
debt. They must therefore be looked at together with “Bonds
and other financial debt”. A breakdown of these derivatives
can be found in Note 27.4.
Financial assets held for investment purposes
These are assets acquired as part of the cash management
process, where the original maturity is greater than three
months. These financial assets consist primarily of bonds
(€555 million as at 31 December 2013, and €353 million as
at 31 December 2012), and negotiable debt securities where
the maturities usually range between three and 12 months
(€100 million as at 31 December 2013 and €205 million as
at 31 December 2012). As at 31 December 2012, this line
item also comprised term deposits accessible after more
than three months, for an amount of €250 million.
Loans for local authority housing
These loans primarily consist of loans to construction
entities with very long-term maturities.
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NOTE 20 Banking activities financial assets
20.1 Customer loans and receivables
20.2 Receivables from credit institutions
20.3 Securities portfolio
20.4 Other banking financial assets
20.5 Banking accruals
20.1 Customer loans and receivables
(€ million) 31/12/2013 31/12/2012
Ordinary customer receivables 679 572
Other customer receivables 66 41
Doubtful receivables 155 158
Provisions (138) (138)
Customer sight loans and receivables 763 633
Short-term credit facilities 3,271 2,625
Home loans 49,646 44,993
Loans to legal entities 3,370 666
Securities received under repurchase agreements 350 140
Doubtful receivables 474 244
Provisions (172) (78)
Term customer loans and receivables 56,939 48,591
Finance lease transactions 561 172
Securities equivalent to customer loans and receivables 942 526
Total 59,204 49,922
This line primarily consists of home loans, which are
continuing to expand.
Short-term credit facilities primarily include:
€3,234 million in consumer loans;
deferred amounts on customers’ Carte Bleue cards.
An assessment of the risk exposure of customer loans
(primarily home loans) and of impairments is shown in
Note 33.7.
The “Securities equivalent to customer receivables and
loans” line primarily corresponds to certain financial
assets classified in the “available for sale” category, which
were reclassified to “loans and receivables” on 1 July 2008
pursuant to the IAS 39 amendment published in October
2008 (see Note 34.5).
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20.2 Receivables from credit institutions
(€ million) 31/12/2013 31/12/2012
Ordinary accounts receivable 136 240
Overnight deposits and loans 12 12
Sight loans and receivables—credit institutions 148 252
Term accounts and loans 78,560 77,207
Securities received under repurchase agreements 1,654 408
Subordinated and participating loans 191 183
Term deposits and loans—credit institutions 80,404 77,798
Securities equivalent to loans and receivables due from credit institutions 2,342 3,204
Total 82,894 81,254
Term accounts and loans primarily include accounts opened
at Caisse des Dépôts in connection with the centralisation
of regulated products, primarily Livret A passbook savings
accounts, Sustainable Development, and Popular savings
accounts.
In the "Securities equivalent to loans and receivables due
from credit institutions" line, securities from the Held-
for-sale assets category only amounted to €5.2 million,
following the reclassifications performed on 1 July 2008 and
authorised by the amendment to IAS 39 in October 2008.
An assessment of credit risks on receivables due from
credit institutions (Banking activities) is set out in Note 33.7.
20.3 Securities portfolio
(€ million) 31/12/13 31/12/12
Government securities and similar 28,889 33,162
Bonds and other fixed-income securities(a) 3,377 3,874
Financial assets held to maturity 32,266 37,036
Government securities and similar 2,086 1,960
Bonds and other fixed-income securities 8,751 6,925
Equities and other variable-income securities(b) 1,061 1,008
Available-for-sale financial assets 11,898 9,892
Government securities and similar 105 289
Bonds and other fixed-income securities 5,094 6,455
Equities and other variable-income securities 40 47
Financial assets held for transaction purposes 5,239 6,791
Interest-rate derivatives 241 265
Foreign exchange derivatives 3 3
Equity and index derivatives 7 2
Derivatives/Positive Fair Value 250 270
Financial assets at fair value through profit or loss 5,489 7,061
Revaluation adjustment on hedged portfolios (fair value hedges) 130 293
Total 49,784 54,281(a) FI: fixed income.
(b) VI: variable income.
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The general principles governing the recognition of
securities and derivatives for the Banking activities are set
out in Notes 3.L.2 to 3.L.5.
The fair value calculation methods for Banking activities
financial instruments are set out in Note 34.2.
An assessment of credit risks for the main items in the
Banking activities securities portfolio can be found in
Note 33.7.
20.4 Other banking financial assets
(€ million) 31/12/2013 31/12/2012
Deposits and guarantees paid 490 552
Other miscellaneous receivables(a) 514 549
Accrued income 196 204
Total 1,200 1,305(a) Other receivables primarily consist of ongoing transactions with customers. The change in this line should be considered together with that of liability
accruals.
20.5 Banking accruals
Banking activities accruals primarily consist of accounts pending settlement of transactions with retail customers.
Accruals—Assets
(€ million) 31/12/2013 31/12/2012
Prepaid expenses 30 32
Collection accounts 93 61
Settlement accounts for securities transactions 10 7
Other insurance assets 213 173
Other accruals—Assets 838 2,114
Total 1,185 2,387
Accruals—Liabilities
(€ million) 31/12/2013 31/12/2012
Settlement accounts for securities transactions 11 10
Other accruals—Liabilities 1,992 3,483
Total 2,003 3,493
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NOTE 21 Inventories and work-in-progress
(€ million)
31/12/2013 31/12/2012
Gross amount Provisions Net amount Net amount
Raw materials and supplies inventories 21 (1) 20 19
Goods inventories 7 (1) 6 6
Other supplies inventories 81 (4) 78 89
Finished and semi-finished product inventories 31 (0) 31 34
Property works in progress 1 1 56
Total 142 (6) 136 203
Inventories primarily consist of:
spare parts for technical facilities;
finished products sold in the post office network (primarily stamp-collecting products);
property works in progress (property development activity).
NOTE 22 Trade and other receivables
(€ million) 31/12/2013 31/12/2012
Advances and deposits paid 36 32
Trade receivables and related accounts 1,936 1,795
Provisions on trade receivables and related accounts (88) (83)
International mail receivables 494 437
CICE tax credit receivable 255
Other receivables 333 302
Provisions on other receivables (29) (29)
Total 2,936 2,453
International Mail receivables (€494 million) are primarily
owed by foreign post offices for the delivery of the mail that
they have passed on in France.
Likewise, trade and other payables include an international
mail service liability (see Note 31) of €488 million owed to
foreign postal operators for mail to be delivered outside of
France passed on by La Poste to these post operators for
delivery.
Other receivables as at the end of December 2013 primarily
included:
a €37 million recoverable VAT receivable from the French
government for VAT credits from major refurbishment
work on the property portfolio performed in 2013;
€8 million in receivables on disposals of tangible and
intangible assets.
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NOTE 23 Cash and cash equivalents
23.1 Cash and cash equivalents
23.2 Cash and central bank deposits (Banking activities)
23.1 Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, bank balances and short-term investments in monetary instruments.
These investments, which were initially due to mature in less than three months, are readily convertible into a known amount
of cash and are exposed to a negligible risk of a change in value.
(€ million) 31/12/2013 31/12/2012
Cash equivalents 1,973 2,011
Cash at bank 183 149
Cash on hand 7 7
Total 2,163 2,167
Cash and cash equivalents consisted mainly of units in
money-market units for an amount of €1,045 million
(€1,051 million as at 31 December 2012), and term deposits
accessible at any time, or within three months, for an
amount of €875 million (€925 million as at 31 December
2012).
Cash held at post offices
Cash held at post offices is not included in the “Cash and
cash equivalents” line item. Because of the low availability
of cash held at post offices, which is needed for the running
of the post offices, and because it bears no interest, the
Group treats it as a current use and includes it on a specific
balance sheet line. Cash held at post offices amounted
to €612 million as at 31 December 2013, compared with
€719 million as at 31 December 2012.
In the cash flow statement, cash held at post offices is also
excluded from cash at the beginning and end of the period.
Changes in cash held at post offices are shown under “Cash
flows from operating activities”.
23.2 Cash and central bank deposits (Banking activities)
(€ million) 31/12/2013 31/12/2012
Cash on hand 274 247
Central banks 1,296 2,478
Central bank related receivables 0 1
Total 1,570 2,726
NOTE 24 Assets and liabilities held for sale
The assets held-for-sale as at 31 December 2013 and 2012 corresponded to properties under promise of sale.
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NOTE 25 Share capital
As at 31 December 2013, the share capital amounted to
€3.8 billion, divided into 950 million ordinary shares with a
par value of €4 each. As at that date, 73.7% of the capital
was owned by the French government and 26.3% was owned
by Caisse des Dépôts.
Background
On 1 March 2010, La Poste became a public limited
company, with a share capital set at €1 billion, split into
500 million fully paid-up shares with a par value of €2 each.
This share capital is, by law, wholly-owned by the French
government or government-owned entities, except for any
portion reserved for La Poste employees.
Prior to that date, La Poste was an independent
government-owned company, with no share capital within
the legal meaning of the term.
April 2011 capital increase
At its 10 February 2011 meeting, the Board of Directors
approved the planned €2.7 billion capital increase, to which
the French government was to subscribe €1.2 billion and
Caisse des Dépôts €1.5 billion.
The Extraordinary General Meeting of 6 April 2011 approved
the following resolutions:
share capital increase of €1 billion through an increase
of the par amount of the existing shares from €2 to €4,
via the incorporation of reserves;
issue of 350 million new shares with equity warrants
(ABSA) with a unit price of €6, including a par value of
€4 and an issue premium of €2, i.e. a total of €2.1 billion
including €1.4 billion in capital and €700 million in issue
premiums;
an equity warrant (BSA) is attached to each new share.
The BSAs will entitle their holders to subscribe to
100 million new shares between 1 March and 30 April
2013 for a total amount of €600 million, including
€400 million in capital and €200 million in issue
premiums. The government and Caisse des Dépôts have
made an irrevocable commitment to exercise all of their
BSAs no later than the last day of the exercise period
(i.e. 30 April 2013);
inclusion of Caisse des Dépôts in the Group’s governing
bodies, with three representatives on the Board of
Directors.
A first payment of €1.05 billion for the capital issued was
made in April 2011, and included €467 million from the
government and €583 million from Caisse des Dépôts. The
second payment of €1.05 billion, which was identical to the
first, was paid in April 2012.
In April 2013, the French government and Caisse des
Dépôts exercised the 350 million in equity warrants they
were holding, which resulted in the issuance of 100 million
new shares at a unit price of €6, €2 of which was an issue
premium.
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NOTE 26 Provisions for contingencies and losses
26.1 Specific provisions for the Insurance and Banking activities
26.2 Other provisions for contingencies and losses
26.1 Specific provisions for the Insurance and Banking activities
As at 31 December 2013, underwriting provisions for the Insurance and Banking activities, classified as current provisions
for contingencies and losses, broke down as follows:
(€ million)
Home Loan
Savings risk
Insurance underwriting
provisions Total
Non-current provisions
Current provisions 194 530 724
Balance as at 31/12/2011 194 530 724
Addition for the year 137 601 738
Reversal for use (489) (489)
Net reversal of the Home Loan Savings provision
Other movements 31 31
Non-current provisions
Current provisions 331 674 1,005
Balance as at 31/12/2012 331 674 1,005
Addition for the year 0 734 734
Reversal for use (23) (586) (609)
Net reversal of the Home Loan Savings provision
Other movements 0 (5) (5)
Non-current provisions
Current provisions 308 817 1,126
Balance as at 31/12/2013 308 817 1,126
The provision for Home Loan Savings risk is intended to cover the negative impact of Home Loan Savings deposits for lending
institutions authorised to accept them, given the commitments that they imply (see Note 3.Q).
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This provision was subject to a net decrease of €23 million over the financial year, which broke down as follows:
(€ million)Amounts collected
PEL and CEL amounts granted
2013 provisions
2012 provisions
Net movements 2012/2013
Age
Over 10 years 7,630 96 118 (22)
4 to 10 years 6,872 100 35 65
Under 4 years 6,787 39 115 (76)
Total Home Loan Savings Plans (PEL) 21,289 155 235 268 (33)
Total Home Loan Savings Accounts (CEL) 5,699 882 73 63 10
Total 26,988 1,037 308 331 (23)
26.2 Other provisions for contingencies and losses
As at 31 December 2013, the other provisions for contingencies and losses broke down as follows:
(€ million)Employee-related
disputes Other disputes Other Total
Non-current provisions 19 34 41 94
Current provisions 52 54 264 371
Balance as at 31/12/2011 71 88 305 464
Addition for the year 39 30 49 118
Reversal for use (19) (8) (23) (49)
Reversal of provisions no longer required (17) (31) (15) (62)
Discounting 0 1 1 3
Other movements (0) (1) 2 1
Non-current provisions 26 30 34 90
Current provisions 49 51 285 385
Balance as at 31/12/2012 75 81 319 475
Addition for the year 75 56 180 311
Reversal for use (26) (18) (48) (93)
Reversal of provisions no longer required (29) (37) (11) (77)
Discounting (0) 0 (1) (1)
Other movements 2 (1) 4 5
Non-current provisions 44 6 30 80
Current provisions 53 73 413 540
Balance as at 31/12/2013 97 80 443 620
Provisions for employee disputes cover all employee
disputes (industrial tribunal, etc.) and ongoing disputes with
social security bodies.
Provisions for other disputes relate to disputes brought
before administrative, civil or commercial courts.
As at 31 December 2013, other provisions included a
€119 million provision intended to cover the guarantee
granted by La Banque Postale to guaranteed-performance
funds (compared with €127 million as at 31 December 2012).
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NOTE 27 Bonds and other financial debt
27.1 Breakdown of financial debt
27.2 Breakdown of debt by maturity
27.3 Bonds
27.4 Bond derivatives
27.5 Other financial debt
27.1 Breakdown of financial debt
31/12/2013 31/12/2012
(€ million) Short-termMedium-and
long-term Short-termMedium-and
long-term
Financial debt at amortised cost 673 3,461 1,346 3,226
Bonds 3,380 726 3,128
Finance leases 21 44 6 58
La Poste savings bonds 63 66
Commercial paper 150
Current bank facilities 32 23
Deposits and guarantees received 368 26 486 25
Other borrowings at amortised cost 39 10 40 15
Borrowings designated at fair value 207 2,015 2,294
Borrowings subject to fair value hedging 530 546
Financial derivative liabilities relating to bonds 42 27 80 9
Other derivatives 7 9 5 9
Interest accrued not due on borrowings 131 136
Medium and long-term bonds and other financial debt (non-current) 6,043 6,085
Short-term bonds and other financial debt (current) 1,060 1,567
Total current and non-current 7,103 7,652
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27.2 Breakdown of debt by maturity
Maturity of < 1 year
Maturity of 1 to 5 years
Maturity of > 5 years Total
(€ million) 2013 2012 2013 2012 2013 2012 2013 2012
Financial debt at amortised cost
Bonds 726 163 164 3,217 2,964 3,380 3,853
Finance leases 21 6 2 28 42 30 65 64
La Poste savings bonds 63 66 63 66
Commercial paper 150 150
Current bank facilities 32 23 32 23
Deposits and guarantees received 368 486 25 24 1 2 394 512
Other borrowings at amortised cost 39 40 10 15 50 55
Borrowings at fair value
Bonds 207 1,341 1,023 674 1,271 2,222 2,294
Borrowings subject to fair value hedging
Bonds 530 546 530 546
Financial derivative liabilities relating to bonds 42 80 27 9 69 90
Other derivatives 7 5 9 9 16 14
Accrued interest not due 131 136 131 136
Total 1,060 1,567 2,109 1,819 3,934 4,266 7,103 7,652
27.3 Bonds
Bond debt, excluding accrued interest, changed as follows:
(€ million)Borrowings at
amortised costBorrowings at fair value
Hedged borrowings Total
Balance as at 31/12/2011 3,108 2,176 539 5,822
New borrowings 750 750
Redemptions
Issue premium (5) (5)
Change in credit risk 45 45
Other changes 73 7 80
Balance as at 31/12/2012 3,853 2,294 546 6,694
New borrowings 250 250
Redemptions (726) (726)
Issue premium 3 3
Change in credit risk 51 51
Other changes (123) (16) (139)
Balance as at 31/12/2013 3,380 2,222 530 6,133
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New bond issue
In November 2013 La Poste issued a new €250 million bond
by reopening the existing €750 million bond issue maturing
in 2024 at a nominal rate of 2.75%.
Debt repayment
The bond issued in 2006 maturing in 2013, with a nominal
value of €726 million, was redeemed in November 2013.
Change in credit risk
The fair value measurement of the borrowings designated
at fair value through profit or loss reflects the decrease
in the cost of credit risk over the year. This change had a
€51 million positive impact on the fair value of the bonds
as at 31 December 2013, compared with 31 December 2012
(as opposed to a €45 million positive impact in 2012). See
paragraph M1 in Note 3 on Accounting rules and methods.
The other changes primarily related to:
the decrease in the fair value of borrowings designated
at fair value through profit or loss at inception mainly
due to the increase in long-term interest rates in 2013;
the change in the fair value of hedged loans. See below.
A loan with a nominal value of €500 million has been hedged at fair value since February 2009. The effect of this hedge on
the income statement is as follows:
(€ million) 31/12/2013 31/12/2012
Revaluation of hedged borrowings through profit or loss (16) 7
Revaluation of hedges on borrowings through profit or loss 16 (7)
Net impact on profit or loss 0 0
As at 31 December 2013, the Group bonds, which have a nominal value of over €500 million, broke down as follows:
Issue date Maturity CurrencyNominal
rate
Nominal value
(millions of currency units)
Accounting treatment
2003 2023 Euro 4.375% 580 Fair value
2008 2018 Euro 4.500% 500 Fair value
Other bonds at fair value 884
Total bonds at fair value 1,964
2004 2019 Euro 4.750% 580 Amortised cost
2006 2021 Euro 4.250% 1,000 Amortised cost
2012-2013 2024 Euro 2.750% 1,000 Amortised cost
Other bonds at amortised cost 800
Total bonds at amortised cost 3,380
2009 2016 Euro 4.750% 500 Fair value hedge
Total bonds subject to fair value hedging 500
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The breakdown of the bond-rate by type of rate as at 31 December 2013 was as follows:
Debt breakdown before fixed-for-floating swaps
Impact of fixed-for-floating transactions
Debt breakdown after fixed-for-floating swaps
(€ million) Amount % Amount Amount %
Fixed-rate borrowings 6,133 100% (2,752) 3,380 55%
Floating-rate borrowings 2,752 2,752 45%
Of which borrowings covered by
partial or total rate-refixing swaps
(see Note below) 1,514
Total borrowings 6,133 100% 6,133 100%
The fixed-for-floating-rate swaps mentioned above are used
at any time after issuance, in order to turn the fixed rate
into a floating rate up until the maturity of the borrowings
in question.
Furthermore, swaps allow the refixing of a portion of these
borrowings at fixed rates with short maturities ranging from
one to five years.
As at 31 December 2013, the portion of floating-rate
borrowings covered by these “rate refixing” swaps
amounted to €1,514 million, i.e. 25% of total borrowings.
These borrowings are still shown on the “Floating-rate
borrowings” line.
“Rate-refixing” swaps represent a nominal amount of
€1,320 million.
As at 31 December 2013, the breakdown of bond debt by currency was as follows:
Debt structure before currency swaps
Impact of currency swaps
Debt structure after currency swaps
(€ million) Amount % Amount Amount %
Euro 5,657 93% 475 6,133 100%
Pound Sterling 268 4% (268)
Swiss Franc 207 3% (207)
Total 6,133 100% - 6,133 100%
Bonds denominated in foreign currencies are backed by swaps that allow the currency risk to be fully hedged.
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27.4 Non-banking activities derivatives
Fair value as at 31/12/2013 Fair value as at 31/12/2012
(€ million) Assets Liabilities Assets Liabilities
Trading derivatives at fair value through profit or loss
Fixed-for-floating derivatives 362 27 480 9
Floating-for-fixed derivatives 42 79
Total 362 69 480 88
Hedging derivatives
Fair value hedges 50 67
Total derivatives relating to bonds 412 69 547 88
Other
Currency swaps 6 2
Cash management funds derivatives 16 3 14
Total Non-banking activities derivatives 419 85 551 102
Amortisable balance on interrupted hedging derivatives
Cash flow hedging derivatives 10 13
27.5 Other financial debt
Finance leases
Liabilities relating to assets held under finance leases
primarily involve properties and sorting machines.
La Poste savings bonds
This line represents La Poste’s savings bond liabilities.
All of the bonds had matured by the end of 2013.
Commercial paper
In October 2013, La Poste issued €150 million in
commercial paper maturing, within three months.
Deposits and guarantees paid
This line primarily relates to security deposits received in
respect of financial instruments put in place to manage
bonds.
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NOTE 28 Net debt
28.1 Net debt position
28.2 Changes to net debt
28.1 Net debt position
(€ million) Note 31/12/2013 31/12/2012Cash and cash equivalents (balance sheet line) 23 2,163 2,167
Debt-related derivative assets 19 419 551
Investment securities with initial maturities of over 3 months 19 655 815
Security deposits paid in connection with derivatives, recognised as
assets 19 35 48
Net financial receivable against La Banque Postale 53 611
Cash and other asset items (1) 3,325 4,192Medium and long-term bonds and other financial debt 27 6,043 6,085
Short-term bonds and other financial debt 27 1,060 1,567
Gross debt (2) 7,103 7,652Net debt (2)-(1) 3,778 3,460Decrease in net debt as at 31 December 2013 318
28.2 Changes to net debt
(€ million) Cross-references 31/12/2013 31/12/2012Cash flows from operating activities CFS (a) 1,056 1,195
Cash flows from investing activities CFS (1,403) (876)
Cancellation of the change in cash management financial assets CFS (157) 148
Cash flow from investing activities excluding the acquisitions and disposals of cash management financial assets (b) (1,561) (728)Capital increase CFS 600 1,053
Dividends paid to the government CFS (171) (144)
Purchase of non-controlling interests CFS (9) (25)
Net financial interest expense (164) (164)
Change in the fair value of financial instruments (28) (58)
Impact of changes in consolidation scope on gross debt (15) (32)
Increase in finance lease liabilities (17) (7)
Bond issue redemption premium and issuance expenses (5)
Other items (c) (8) (1)
Cash flows and change in debt from financing activities 187 617Decrease (Increase) in net debt since 1 January (318) 1,084Net debt at the beginning of the period (3,460) (4,544)
Net debt at the end of the period (3,778) (3,460)
(a) "CFS” refers to the non-banking column of the Cash Flow Statement in the consolidated financial statements.
(b) The cash flows from investing activities stand out from CFS due to the exclusion of the "change in cash management financial assets",
assets deducted from the net debt calculation.
(c) The “Other items” line includes the impact of currency fluctuations on net debt and dividends paid to non-controlling interests.
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NOTE 29 Employee benefits
29.1 Change in provisions for employee benefits
29.2 Description of employee benefits
29.3 Actuarial assumptions
29.4 Change in post-employment benefit commitments
29.5 Analysis of post-employment benefit expenses
29.6 Expected cash outflows
29.1 Change in provisions for employee benefits
It became mandatory to apply revised standard IAS 19 at 1 January 2013 (see Note 2.1.A). Provisions for post-employment
employee benefits have been restated as follows as at 31 December 2012:
31/12/2012 as reported 31/12/2012 restated
(€ million) CurrentNon-
currentApplication
of IAS 19 Revised CurrentNon-
current
Post-employment benefits
for La Poste’s government employees 17 443 17 17 460
Retirement benefits
for the Group’s contract staff 4 149 65 4 214
Pension plans for employees
of foreign subsidiaries 25 26 51
Total 21 617 108 21 725
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Provisions for employee benefits have changed as follows during 2013:
31/12/2012 31/12/2013
(€ million) CurrentNon-
current IncreaseDecrease
for useInterest
costOther
changes CurrentNon-
current
Post-employment benefits
for La Poste’s government employees 17 460 6 (16) 12 (29) 17 433
Retirement benefits
for the Group’s contract staff 4 214 20 (4) 5 (9) 6 224
Pension plans for employees
of foreign subsidiaries 0 51 2 (6) 2 6 55
Total 21 725 28 (26) 19 (32) 24 712
End-of-career arrangements 340 886 237 (322) 15 0 382 775
Severance payments 82 26 6 (1) (0) 81 32
Long-term sick leave/
long-term paid leave 64 52 1 (11) 0 61 45
Accrued leave 108 110 5 (11) 2 0 114 101
Other long-term benefits 2 23 3 (6) (0) 2 21
Total 256 211 16 (29) 2 (0) 258 199
Total 617 1,821 281 (376) 36 (32) 663 1,685
29.2 Description of employee benefits
Post-employment and long-term benefits resulting from
defined benefit plans, together with their related costs,
are measured using the projected unit credit method, in
accordance with IAS 19. Annual actuarial appraisals are
carried out.
The appraisal calculations involve taking third-party
actuarial economic assumptions into account (discount
rates, inflation rates, and the rate of increase in pensions,
etc.), as well as assumptions that are specific to Le Groupe
La Poste (employee turnover rates, mortality rates, and the
rate of increase in salaries, etc.).
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A. Pension commitments for government employees at La Poste
Article 150 of the 2006 Amending Finance Act, published
in the Journal officiel of 31 December 2006, sets out the
pension funding plan for government employees working
at La Poste. This plan changes the previous funding plan
so as to gradually put La Poste on an equal footing with
competitors.
The reform implemented in December 2006, and approved
by the European Commission in 2007, includes:
the implementation of an employer contribution aimed
at discharging all of the employer’s pension liabilities as
from 1 January 2006. This rate was gradually reduced
down to a so-called “competitively fair” rate in 2010, i.e.
a level that brings the mandatory salary-based social
security and tax charges at La Poste down to the level
at other companies in the postal and banking sectors.
Over the period between 2006 and 2009, the law had set
an additional rate (16.3% in 2006, 6.8% in 2007, 3.7%
in 2008, and 1.3% in 2009), which was added to the
competitively fair rate;
the transfer of the task of centralising and distributing
the flow of retirement benefits to La Poste’s government
employees between the French government, La Poste
and any other relevant bodies to the EPNFRLP
(Établissement public national de financement des retraites
de La Poste, the French government agency for the
funding of La Poste’s pensions), which was established
beforehand via the Decree of 19 December 2006. The
EPNFRLP is actually responsible for negotiating financial
agreements provided for under Title II, Book II and under
Title II, Book IX of the French Social Security Code;
the payment of a one-time fixed contribution of €2 billion
to this public agency by La Poste in 2006.
With the implementation of this plan, and given that the
employer contribution is made in full discharge of the
obligation, no provision is recorded in La Poste’s financial
statements in respect of government employees’ retirement
benefits.
Under the previous plan set forth in the Act of 2 July 1990,
La Poste was responsible for reimbursing the cost of
pensions granted to government employees working for
La Poste in accordance with the French Civil and Military
Pensions Code, where payment and cover were provided by
the French government.
B. Post-employment benefits granted to retired government employees attached to La Poste
Other commitments for post-employment benefits include:
employee welfare services provided to government
employees, primarily including home help and holiday
vouchers;
a loyalty bonus granted to retired state employees who
hold their pension in a current account at La Banque
Postale;
granting assistance to voluntary organizations that
provide services to retired government employees.
C. Retirement benefits for the contract staff of La Poste and the Group’s French subsidiaries
Employees retiring from the Company and eligible for a
pension receive retirement benefits, the amount of which
is based on length of service and final salary.
D. Pension plans for employees of the Group’s foreign subsidiaries
Pension commitments for the Group’s foreign subsidiaries
primarily relate to the GeoPost sub-group and the GeoPost
UK subsidiary. GeoPost UK’s commitments are partially
covered by a pension fund.
E. End-of-career arrangements
La Poste employees may benefit from an early end-of-
career arrangement scheme called Adjusted Part Time
Scheme for Seniors (APTSS) described below under some
certain circumstances. These arrangements are offered
to some people who meet the relevant minimum-age
requirement (government employees and contract staff) and
number of years of service. This scheme was implemented
in 2011, and its characteristic features are adjusted each
year according to the demographic and economic conditions
of the company, as well as to the laws applicable to
retirement. The main characteristic features of the scheme
applicable in 2014, which were set in December 2013, are
as follows:
Enrolment in the scheme is possible as from 56 and a
half years of age (government employees and staff in
office roles), and as from 53 and a half years of age
(government employees in active roles) for persons in
a position that is physically demanding, or who were
previously in such a position for at least 10 years.
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Persons who are not in a physically demanding position
may benefit from this scheme as from 58 and a half
years of age (government employees and staff in office
roles) or as from 54 and a half years of age (government
employees in active roles).
This scheme is open to employees who have worked for
La Poste for at least 10 years, and who will be able to
benefit from a full pension once they have reached the
legal retirement age.
The length of participation in the plan is fixed upon
enrolment and is not subject to change. Participation is
for a minimum of one year and the maximum age at the
end of the scheme corresponds to the pension eligibility
age set by law.
During the term of the scheme, the state employee
works part-time (70%) in an administrative position, with
a proportional reduction in remuneration.
The work performed by the employee during the term of
the scheme is split between an operational activity and
a consulting role.
This scheme is open to all La Poste staff who meet the
above conditions in 2014.
The provisions relating to the APTSS recognised as at
31 December 2013 factor in the expected enrolments to
the scheme available in 2014, as well as enrolments to the
schemes operating from 2011 to 2013.
Furthermore, the following end-of-career arrangements
have been available in the past, and continue to be the
subject of provisions for the persons still benefiting from
them as at 31 December 2013:
Part-Time Consulting (PTC): employees eligible for the
PTC scheme enjoy reduced working hours in exchange
for a proportional reduction in their remuneration.
This scheme is open to employees who have turned 56,
provided that it is followed up by part-time mentoring
and consulting (PTMC) or a new part-time mentoring and
consulting (NPTMC) scheme (see definitions below) by
the time they turn 58 and a half.
These reduced working hours may involve performing
training activities. It is up to the section head to decide
on the nature of activities and how they are organised
(working conditions). The PTC scheme is an irreversible
arrangement, which must subsequently be followed by
a PTMC or NPTMC scheme.
Part-Time Mentoring and Consulting (PTMC): employees eligible for the PTMC scheme can leave
their operational position from the age of 57 and receive
partial remuneration in return for remaining available for
mentoring and/or consulting assignments.
New Part-Time Mentoring and Consulting (NPTMC): employees eligible for the NPTMC scheme can leave
their operational position from the age of 58 and a half
and receive partial remuneration in return for remaining
available for mentoring and/or consulting assignments.
Adjusted end-of-career arrangements (AECA): employees who benefit from AECA enjoy a period during
which they work part-time in return for a proportionally
lower pay cut, followed by a work exemption up to the
legal retirement age. A benefit is paid on retirement. This
scheme is available to government employees aged 56
and 57.
Exemption from Work (EW): this scheme, which was
introduced by La Poste, is offered to certain government
employees in active roles who meet the age criteria
and are affected by regional agreements linked to
restructuring programmes.
The employees concerned, who have 15 years of active
service and are aged between 53 and a half and 55 years,
are exempt from any work from the age of 53 and a half,
subject to their taking retirement as from age 55. When
they retire at age 55, the employees receive an End-of-
Career Bonus.
F. Other long-term benefits
These are paid leave schemes:
Accrued leave: accrued leave is a scheme that allows
employees to accrue part of their unused earned leave
beyond the period for using earned paid leave. The
provision for Accrued Leave corresponds to the value of
the leave rights included in this scheme.
Supplementary leave: government employees from
the overseas departments or who work in the overseas
departments benefit from paid supplementary leave, as
well as from paid travel expenses. The provision covers
these supplementary leave and travel rights.
Long-term sick leave/long-term paid leave: the
provision for long-term sick leave and long-term paid
leave is designed to cover the costs relating to future
leave incurred as at the balance-sheet date. This
provision is measured at every balance-sheet date
for every employee concerned, on the basis of future
entitlements, as expressed by a number of payable index
points.
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29.3 Actuarial assumptions
The actuarial assumptions used to measure employee
benefits are reviewed and updated once a year at the annual
balance-sheet date.
The main assumptions selected as at 31 December 2013
were as follows:
likelihood of retaining working staff within the Group, life
expectancy and estimates of future salary increases;
retirement age assumptions for employees of foreign
companies and employees governed by foreign collective
bargaining agreements, which take account of local
economic and demographic factors;
an assumed average benefit increase of 2% (no change
compared with 2012);
provisions for retirement commitments relating to end-
of-career arrangements that form part of agreements
are calculated on the basis of the definite enrolments
in these schemes as at the balance-sheet date, as
well as of Management’s best estimate of likely future
enrolments up until the expiry date of these agreements.
A one-point increase in the expected rate of enrolment
would have increased the provision by €19 million as at
31 December 2013;
the discount rates used for actuarial appraisals as at
the balance-sheet date, determined with reference
to a basket of AA-rated corporate bonds published by
Reuters, were as follows:
Maturity 5 years 10 years 15 years 20 years
2013
Euro zone 1.4% 2.5% 2.8% 3.1%
UK zone 2.3% 3.5% 3.9% 4.2%
2012
Euro zone 1,2% 2.2% 2.6% 2.7%
UK zone 2% 3% 3.5% 4.1%
29.4 Change in post-employment benefit commitments
The tables below show the change in the commitment and in the plan assets for the Group’s post-employment benefit plans
as at 31 December 2013 and 31 December 2012.
Change in commitments
(€ million) 2013 2012
Commitment at the beginning of the period 887 704
Cost of services provided 25 21
Discount unwinding costs 23 31
Change in consolidation scope 2 2
Curtailment and settlement of plans
Benefits paid (26) (29)
Employee contributions 1
Actuarial (gain) loss relating to changes in assumptions (a) (12) 170
Actuarial (gain) loss due to experience adjustments (11) (18)
Translation adjustments (4) 5
Commitment at the end of the period 886 887(a) Mainly due to changes in the discount rate.
There was no change in the post-employment plans in 2013 and 2012.
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Change in plan assets
(€ million) 2013 2012
Plan assets at the beginning of the period 141 133
Expected return on assets 5 6
Employer contributions 6 7
Employee contributions 1 1
Benefits paid (7) (10)
Change in consolidation scope 2 2
Actuarial differences 4 (1)
Translation adjustments (2) 3
Plan assets at the end of the period 150 141
The plan assets primarily relate to GeoPost UK’s pension commitments.
Net commitment
(€ million) 31/12/2013 31/12/2012
Commitments 886 887
Plan assets (150) (141)
Net commitment 736 746
of which non-current provision 712 725
of which current provision 24 21
Change in actuarial differences (recognized in “other comprehensive income”)
(€ million) 2013 2012
Actuarial (gain) loss at the beginning of the period 110 (47)
Actuarial (gain) loss relating to changes in assumptions (a) (12) 164
Actuarial (gain) loss due to experience adjustments (11) (16)
Actuarial differences on plan assets (4) 1
Curtailment and settlement of plans
Other (2) 8
Actuarial (gain) loss at the end of the period 80 110(a) Mainly due to changes in the discount rate.
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Breakdown of plan assets
31/12/2013 31/12/2012
Equities 34% 30%
Government bonds 21%
Corporate bonds 20%
Diversified investment funds 32% 29%
LDI fund (Liability-Driven Investment) 10%
Insurrance contracts 24%
Discount rate sensitivity
A 50 basis point reduction in the discount rate would increase the Group’s net post-employment benefit commitment by
around €53 million.
29.5 Analysis of post-employment benefit expenses
(€ million) 2013 2012
Cost of services provided 25 18
Discount unwinding costs 23 31
Expected return on assets (5) (6)
Curtailment and settlement of plans
Expense (Income) for the period 43 43
29.6 Expected cash outflows
The table below presents an estimate of the benefits
payable over the next five years in respect of defined-benefit
post-employment benefits:
(€ million) Benefits paid
2014 30
2015 27
2016 28
2017 28
2018 28
Benefits paid correspond to Group cash outflows, except
for the GeoPost UK and DPD Schweiz pension plans, which
are covered by an assets fund (benefits of approximately
€7 million paid per year).
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NOTE 30 Banking activities financial liabilities
30.1 Liabilities to credit institutions
30.2 Liabilities to customers
30.3 Debt evidenced by a certificate and other banking financial liabilities
30.1 Liabilities to credit institutions
(€ million) 31/12/2013 31/12/2012
Ordinary accounts payable 81 58
Overnight deposits and borrowings
Other amounts due 29 19
Sight liabilities to credit institutions 110 77
Securities given under repurchase agreements 12,080 14,948
Term deposits and loans 2,567 787
Term liabilities to credit institutions 14,647 15,734
Total 14,757 15,811
Securities given under repurchase agreements correspond to inter-bank and similar transactions.
The subordinated debt corresponds to La Banque Postale’s bond issues.
The maturity schedule for liabilities to credit institutions is as follows:
Maturity of < 1 year
Maturity of 1 to 5 years
Maturity of > 5 years Total
(€ million) 2013 2012 2013 2012 2013 2012 2013 2012
Sight liabilities to credit
institutions 110 77 110 77
Term liabilities to credit
institutions 12,194 15,551 2,084 369 183 14,647 15,734
Total 12,304 15,628 2,084 369 183 14,757 15,811
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30.2 Liabilities to customers
This item primarily represents deposits by customers of the Banking activities plus accrued interest not due on these deposits.
(€ million) 31/12/2013 31/12/2012
Livret A passbook savings accounts 64,314 61,756
Home Loan Savings Plans (PEL) 21,287 20,185
Home Loan Savings Accounts (CEL) 5,699 6,282
PSP accounts 340 396
Popular savings accounts 8,681 9,375
Sustainable Development (LDD) accounts 7,191 6,431
Youth passbook savings accounts 753 817
Livret B (savings passbook) accounts 2,514 2,347
Stock Savings Plan Liquidity Accounts 404 309
Other special accounts 2,684 3,516
Special savings accounts 113,866 111,414
Ordinary trade payables 47,670 45,383
Customer borrowings 1 (0)
Other amounts due to customers 231 256
Sight liabilities to customers 47,901 45,639
Customer borrowings 259 12
Term deposits 548 453
Equities and securities given under repurchase agreements 4,008 2,875
Term liabilities to customers 4,815 3,341
Total 166,583 160,393
Since 1 January 2009, the funds in La Banque Postale’s Livret A passbook savings accounts, which were previously held by
Caisse Nationale d’Épargne, have been taken over directly by La Banque Postale. This is pursuant to the deregulation of the
distribution of Livret A passbook savings accounts, which resulted in the winding up of Caisse Nationale d’Épargne.
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30.3 Debt evidenced by a certificate and other banking financial liabilities
(€ million) 31/12/2013 31/12/2012
Subordinated debt 829 850
Bonds 1,536 273
Certificates of deposit 2,763 4,264
Debt evidenced by a certificate 5,129 5,387
Guarantee deposits received 478 386
Financial liabilities at fair value through profit or loss 118 111
Hedging derivatives 372 563
Other financial liabilities 694 739
Total 6,790 7,185
The “financial liabilities at fair value through profit or loss” correspond primarily to interest rate derivatives.
The maturity schedule for debt evidenced by a certificate is as follows:
Maturity of < 1 year
Maturity of 1 to 5 years
Maturity of > 5 years Total
(€ million) 2013 2012 2013 2012 2013 2012 2013 2012
Debt evidenced by a certificate 2,999 4,537 150 1,980 850 5,129 5,387
NOTE 31 Trade and other payables
(€ million) 31/12/2013 31/12/2012
Trade payables and related accounts 1,375 1,367
Tax and social security liabilities 1,841 1,834
Payable to suppliers of non-current assets 242 241
International mail payables 488 463
Customer advances and deposits 214 165
Other operating payables 264 278
Total 4,424 4,349
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Additional information
NOTE 32 Information on risks excluding Banking activities
32.1 Credit risk
32.2 Liquidity risk
32.3 Interest-rate risk
32.4 Currency risk
La Poste takes a prudent approach to risk management,
which is based on a system of notional limits for each
financial risk to which it is exposed as part of its financial
activities. This system of limits is set out in a “Limits
Handbook” that is updated regularly, according to the
changes in the Treasury and Financing Department’s
activities, and is presented to the La Poste Audit Committee
every year.
An execution report for the Limits Handbook is also
presented to La Poste’s Audit Committee every year.
32.1 Credit risk
In the course of its non-banking financial activities, La Poste
is primarily exposed to two types of credit risk:
the risk of its issuers defaulting on their investment
securities;
the risk of its market counterparties defaulting.
La Poste’s cash is invested in money-market UCITS, term
deposits and Negotiable Debt Securities (NDS) with a
minimum short-term rating of A2/P2. The credit risks are
controlled by a system of limits representing the maximum
nominal amount not to exceed for each UCITS or issuer.
Moreover, in view of its operations in derivative markets,
La Poste is exposed to the risk of its market counterparties
defaulting. This risk is also controlled via a system of limits,
which constitute absolute upper limits for risks arising from
the derivative portfolio.
The exposure relating to these instruments is assessed
through the net market value of the derivatives for each
counterparty, after taking into account guarantees received
or given under collateralisation agreements.
The commitments to La Poste’s counterparties are subject
to systematic collateralisation agreements that enable the
risk of default to be reduced at the franchise level.
Considering the high amount of its investments, in 2013
La Poste implemented an indicator designed to assess the
maximum statistical risk of financial loss on its investment
securities portfolio, with a 97.5% confidence interval. This
indicator is based on one year CDS for each of the issuers in
its portfolio, weighted with the investment’s current amount
and residual maturity.
32.2 Liquidity risk
Liquidity risk is assessed through forecast cash flows,
calculated as a moving average every day during the first
month and then monthly for the rest of the year.
Any liquidity gaps are refinanced through the issue of
French commercial paper or Euro Commercial Paper (ECP).
In addition, La Poste has negotiated confirmed credit
facilities with financial institutions and has access to
a €650 million syndicated credit facility, as well as to an
additional €75 million credit facility granted by BNPP (see
Note 36.4.B).
A liquidity warning is sounded when the one-month forecast
cash flow statement reveals that total short-term financial
resources used exceed 50% of all available financial
resources (confirmed credit facilities).
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The table below shows the contractual cash flows relating to non-derivative financial liabilities, as well as the contractual
flows relating to debt management derivatives, regardless of whether they are shown as liabilities or assets. These flows are
not discounted and their total may therefore differ from the amount recognised on the balance sheet.
Balance sheet
amount 2014 flows 2015 flows 2016-2018 flows2019 flows and beyond
(€ million) 31/12/13 Interest Principal Interest Principal Interest Principal Interest Principal
Bonds 6,133 249 204 242 623 1,810 549 3,800
Borrowings at amortised cost 3,380 135 135 396 160 422 3,220
Borrowings at fair value 2,222 90 204 83 203 1,150 127 580
Borrowings subject
to fair value hedging 530 24 24 24 500
Other financial debt 753 673 18 55 8
Finance leases 65 21 9 27 8
La Poste savings bonds 63 63
Commercial paper 150 150
Current bank facilities 32 32
Deposits and guarantees received 394 368 6 20
Other borrowings at amortised
cost 50 39 3 8
Derivatives (333) (70) (60) (74) (162) 52 (47)
Derivative liabilities 85 18 4 (6) 52
Derivative assets (419) (88) (60) (78) (156) (47)
Total 6,553 179 817 168 18 461 1,917 502 3,808
32.3 Interest-rate risk
La Poste has pursued an active management strategy for
its bond debt since 1999, based on the use of derivatives to
reduce the coupon rate of its bonds.
This hands-on management generates a unidirectional
interest-rate risk linked to an unfavourable change in
the yield curve. The interest-rate risk is controlled by a
percentage limit representing the maximum cost of the
bond debt according to a four-year horizon. This limit, which
is reviewed every year based on the residual maturity of the
bond debt, is monitored on a weekly basis.
The forecast cost of debt is determined on the basis of
projected cash flows for all instruments used to manage
the debt, i.e. borrowings and derivatives.
The cash flows from floating-rate coupons are assessed
using an industry tool that enables expected future coupons
to be determined based on the yield curve.
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In order to anticipate the impact of a rise in interest rates,
the cost of debt is simulated every week based on a parallel
shift of 50 basis points in the yield curve. If the result of this
test exceeds the authorised interest rate limit, preventive
transactions are carried out to re-price the cost of the debt.
Sensitivity analysis
A uniform sudden 50-basis point increase in the market
yield curve would result in a €5.9 million increase in the
Group’s annual financial expense, after taking into account
debt management derivatives (compared with €5.4 million
as at 31 December 2012).
A uniform sudden 50-basis point increase in the market
yield curve would result in a €3.2 million profit in income
(compared with €13.1 million as at 31 December 2012),
resulting from the change in the fair value of the debt
recognised at fair value through profit or loss and of the
debt management swaps.
32.4 Currency risk
La Poste cautiously assesses currency risk by systematically
hedging borrowings and investment securities denominated
in foreign currencies via the setting up of currency swaps or
forward purchases and sales.
As at 31 December 2013, there were no significant foreign
currency-denominated investment securities. Some bonds
are denominated in pounds sterling and Swiss francs.
These borrowings are fully protected by a foreign exchange
hedge, as detailed in Note 27.
NOTE 33 Information on risks relating to Banking activities
33.1 Risk management policy
33.2 General organization of La Banque Postale’s Risk Department
33.3 Structural risk factors
33.4 La Banque Postale’s risk exposure
33.5 Liquidity risk
33.6 Interest-rate risk
33.7 Credit risk
33.8 Market risk
33.1 Risk management policy
La Banque Postale’s guidelines for internal controls and
risk management are primarily based on regulations
including:
CRBF Regulation 97-02, amended regarding internal
controls;
prudential regulations (Order of 20 February 2007
regarding shareholders’ equity requirements;
Regulation 93-05 regarding major risks; Order of 5 May
2009 regarding the management of liquidity risk; and
Regulation 2000-3 regarding consolidated prudential
oversight);
the AMF General Regulations, for activities linked to
investment services.
The regulatory framework is translated into internal rules,
validated by the Bank’s Executive Board:
“the Risk Management Policy of La Banque Postale”
where risk management is concerned, and “The Charter
of the risk management organization”;
the “Audit Charter” where periodic control is concerned,
as well as into reference documents distributed to the
Departments of the bank, in order to implement the rules,
in particular:
standards issued by the Group Standards Validation
Committee;
“key elements of an internal control system”;
procedure for implementing the “products review”.
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33.2 General organization of La Banque Postale’s Risk Department
The Executive Board sets the common fundamental
guidelines (strategic directions, values, risk appetite
and governance), based on which each Business Line
implements its action priorities, and the related risk
management system under the supervision of the Group
Risk Department (GRP). These fundamental guidelines are
specifically applied in the Risk Management Policy.
The Risk Management system is in keeping with three lines
of defence which constitute the general internal control
framework, namely:
a first line within the operating Business Lines
responsible for implementing the risk management
system that they have defined beforehand together with
the GRP;
a second line, which is embodied by the Group Risk
Department, which guarantees the existence of a
favourable and consistent general framework for
defining and amending risk management systems;
a final line across the internal control functions
responsible for providing an independent assessment of
the effectiveness of the risk management implemented.
Internal control at La Banque Postale comprises permanent
control and periodic control. It is based on a Risks
Management Policy and a Charter of the Risk Management
Organization, issued by the Group Risk Management
Department of La Banque Postale to all Departments.
It establishes a series of risk management and control
principles that each entity responsible for a process must
apply. Each Department defines, formalises and keeps
updated a manual of its policies. These policies define the
control points that are necessary to ensure the quality of
their operations:
The responsibility of all actors, which constitutes the
basis of an efficient risk management and control
system. Each employee must ensure that his activity
and the operations he processes follow the existing
procedures and have the required quality level. He must
be able to report at any time on his proper control of
his activity and risks. This principle relies on a strong
involvement of the management.
The proportionality of controls to the level of risk to be
managed. Each manager performs a risks analysis and
implements a control system accordingly, in order to
gain a reasonable assurance that his activities are under
control, and comply with internal and external standards
and rules of the company.
The completeness of the scope of the control system.
This scope covers all activities of La Banque Postale.
It includes risks of all natures, all direct employees as
well as others working in the company’s name and on its
behalf, and all entities of La Banque Postale Group. The
internal control system also applies to essential services
which have been externalised.
The GRP is in charge of the essential tasks of risk
management, which ensure:
the cohesiveness, homogeneity, eff iciency and
completeness of risk assessment;
the monitoring and management of risks.
It is also in charge of risk management at a consolidated
Group level.
The GRP is in charge of formulating a coordinated risks
management policy for the Group, subject to the approval
of the Executive Board.
Each entity is responsible for its own risks management and
internal control policy, subject to the approval of the GRP.
The GRP ensures that the risks management policies of
the subsidiaries are consistent with the policy of the parent
company, and that they are correctly applied.
33.3 Structural risk factors
La Banque Postale has reviewed the risks that could have
a material adverse effect on its business, its financial
position and its results (or its ability to achieve its targets),
and considers that there are no significant risks other than
those shown.
The structural risk factors that affect La Banque Postale are
primarily related to its retail banking business, i.e. liquidity
and interest-rate risk linked to converting short-term
customer deposits to longer-term use, credit risk on the
loans granted to its customers, and the operational risk
relating to the Banking activities.
Market risk also represents a structural risk factor, which
La Banque Postale monitors closely.
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33.4 La Banque Postale’s risk exposure
(€ million) 2013 2012
Financial assets at fair value through profit or loss 5,239 6,853
Trading derivatives 128 109
Hedging derivatives 221 287
Available-for-sale financial assets 11,843 8,885
Loans and receivables—Credit institutions 82,894 81,254
Customer loans and receivables 59,212 49,931
Financial assets held to maturity 32,266 37,035
Balance sheet exposure net of impairment 191,803 184,354
Financing commitments given 20,197 17,383
Guarantee commitments given 3,690 3,154
Off-balance sheet exposure 23,887 20,536
Total net exposure 215,690 204,890
In 2013, contrary to 2012, UCITS are included in the above figures.
The following risks are described below:
33.5 Liquidity risk
33.6 Interest-rate risk
33.7 Credit risk
33.8 Market risk
33.5 Liquidity risk
The ALM Committee is primarily responsible for monitoring
liquidity risk. Chaired by a member of the Executive Board,
the Committee consists of the Head of Retail Banking, the
Head of Risk, and the Head of Management Control, along
with the Head of Financial Transactions, who runs it.
The ALM Committee reviews customer deposit models
on a regular basis, and formally validates the outflow
assumptions produced.
It monitors the liquidity risk performance indicators, and
anticipates their future development, in light of the Bank’s
commercial policy, and of observations on customer
behaviour.
Assessment of risk
As at 31 December 2013, La Banque Postale continued
to show excess customer resources compared with its
uses. However, the proportion of loans to customers has
increased, and now represents 33% of customers’ deposits,
due to the development of loans to legal entities.
La Banque Postale is primarily exposed to liquidity risk
arising from putting its sources of funding, which consist
mainly of overnight deposits, to longer-term use, either in
the form of home loans to private individuals or loans to
legal entities, or in the form of debt securities.
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The portion of resources not used for held-to-maturity
investments or consumer loans can be used to build the
portfolio of available-for-sale financial assets. These
securities are effectively marketable and can be sold quickly
if needed.
Risk management and limits
La Banque Postale’s risk management policy defines
two kinds of liquidity risk with two different monitoring
approaches:
Cash liquidity risk
Relating to the institution’s cash management.
Operational limit that enables cash management funding
requirements to be capped.
The amount and observation period are set by the Risk
Committee.
The short-term liquidity limit is set in accordance with
the future Basel 3 guidelines. It involves a 30-day limit
that compares liquidity requirements over 30 days with a
cushion of liquid assets. This liquidity requirement must
not exceed the liquid asset cushion available.
Structural liquidity risk
Relating to changes in the structure of the Bank’s
balance sheet.
Takes the outflow agreements approved by the ALM
Committee into account.
Management of this risk is assigned to the ALM
Committee in accordance with the principles and limits
laid down by the Risk Committee.
Currently measured through the medium-to-long-term
liquidity gap, which corresponds to a static outflow of
liabilities (through outflow agreements) and assets. The
Bank has a guarantee that the liquidity represented by
the gap will be made available to it, based on an almost
certain confidence interval.
The net liquidity gap (sources—uses) is zero for the 1, 3 and
5-year segments. The Bank sets itself an excess liability
obligation.
The outflow assumptions used to measure structural
liquidity risk involve modelling the outflow of undated
liabilities, loans extended and recognised off-balance sheet,
and taking the potential conversion of the sovereign debt
portfolio into account.
The assumptions used for the medium and long-term liquidity gap are:
Shareholders’ equity net of non-current assets In fine
Debt Contractual date or call date
Sight deposits, savings accounts, CEL and CAT Outflow agreement
Home loan savings plan Certain outflow (see Home Loan Savings provision)
Term deposits Contractual date
Home loans Contractual schedule + early structural repayments
Home loan savings loan options Likely generation over the average maturity observed
Bond securities and Deposits Contractual payment schedule that is not eligible for ECB refinancing,
net of the cash repo limit
Off-balance sheet commitments Outflow agreement
Standard outflow agreements for liabilities with no fixed
maturity are reviewed on a regular basis, in order to reset
them at the minimum levels required by changes in the
deposit volatility trend (behavioural changes, etc.).
Off-balance sheet loans are subject to a liquidation process
based on a behavioural model that takes account of the rate
of product changes, payment periods, and the effective life
of the new loans generated (early redemption).
Risk exposure
La Banque Postale continued to manage its liquidity on
a prudent basis in 2013. This was reflected in surpluses
throughout the year, underpinned by the quality of the
financial assets owned.
La Banque Postale’s one-month liquidity ratio was 224%
as at 31 December 2013, which is once again at a level
that is significantly higher than the minimum regulatory
requirement of 100%.
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The short term liquidity risk is measured by an internal
indicator, which confirmed the Bank’s excess short-term
liquidity position. It relies on new Basel indicators (LCR).
Further stress tests were performed in 2013 in order to
check the Bank’s strength in terms of liquidity risk.
Structural liquidity risk is measured via the medium and
long-term liquidity gap resulting from the difference
between stressed static liability outflows (outflow
agreement) and assets. The structural liquidity limit was
complied with at all times in 2013.
The maturities covered by the calculation are as follows:
1 month, 3 months, 6 months, 1 year, 2 years, 3 years,
4 years, 5 years, 7 years, 10 years, and 15 years. The gap is
measured monthly and presented at Risk Committee and
ALM Committee meetings.
LIQUIDITY GAP, AS MEASURED
AT 31 DECEMBER 2013 AND 31 DECEMBER 2012(€ million)
31/12/2013
-10,000
-5,000
0
5,000
10,000
15,000
20,000
15 years10 years7 years5 years4 years3 years2 years1 year1 month
31/12/2012
A positive gap for a given maturity indicates that the Bank
has more resources than uses with a greater maturity.
The positive liquidity gap for maturities of under five years
reflects La Banque Postale’s surplus liquidity. Furthermore,
this surplus liquidity is strengthened by the quality of the
financial assets held and their accounting classification,
which is taken into account in order to manage the Bank’s
structural liquidity.
The decline in structural liquidity on the 5-year segment
is explained by the increase in customer uses, notably by
legal entities.
The liquidity limit system is supplemented by stress tests,
which include a drying-up of the securities repo market.
The aging of resources and uses by residual maturity is
presented in Note 37.2.
Short term liquidity risk
The short-term liquidity limit is set in accordance with
the future Basel 3 guidelines. It involves a 30-day limit
that compares liquidity requirements over 30 days with
a cushion of liquid assets available after LCR type stress
on deposits mass withdrawals. The liquidity requirement
must not exceed the liquid asset cushion available. As at
31 December 2013, La Banque Postale holds an excess in
liquid securities of around €8 billion.
In addition to the prudent liquidity risk management
guidelines implemented by the ALM Committee and the
Risk Committee, La Banque Postale has established
diversified sources of funding:
a €20 billion certificates-of-deposit programme, of which
the amount of securities issued varies between 15% and
40% of the programme, with the goal of maintaining
La Banque Postale’s presence in the short-term market,
and to satisfy institutional clients;
a €10 billion EMTN programme set up in late 2006, and
updated in the summer of 2012. Less than 10% of this
programme had been used as at the end of 2013;
a €10 billion EMTN programme set up to issue Home
Lending Bonds (OFH). Up to 11% of this programme had
been used as at the end of 2013;
a portfolio of held-to-maturity securities, which mainly
consists of high-quality government bonds, which are
rapidly convertible. As at the end of 2013, this liquidity
reserve amounted to €31 billion, and provided a
permanent source of eligible securities granting access
to the ECB’s refinancing transactions or to the repo
market;
access to the inter-bank market.
33.6 Interest-rate risk
The ALM Committee is primarily responsible for monitoring
interest-rate risk.
It monitors the interest-rate risk performance indicators,
and anticipates their future development, in light of the
Bank’s commercial policy, and of observations on customer
behaviour.
Assessment of risk
Interest rate risk represents the likelihood of seeing the
Bank’s future margins or economic value affected by
fluctuations in interest rates.
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La Banque Postale has two different types of indicators for
monitoring interest rate risk:
indicators that support the hedging decision-making
process;
indicators aimed at assessing the institution’s ability to
withstand external stress.
Sensitivity indicators form part of the first category.
They involve both future income schedules (sensitivity to
future margins) and the net present value of future cash
flows (NPV sensitivity).
These sensitivities are established using deterministic
interest rate scenarios. In fact, it is always necessary to
model customer behaviour, and in the present case to
model that behaviour in light of changes to the interest
rate environment. Among the implicit options available
to customers, the most important, both in terms of their
impact on the balance sheet and on margins, are:
the risk of early redemption of outstanding loans in the
event that interest rates fall;
the risks relating to home loan savings, where deposits
are collected at a higher fixed rate than expected if
market interest rates fall, and take-up of the entitlement
to low fixed-rate home loans is higher than expected,
if market interest rates rise. These risks are actually
covered by a special provision, the amount of which is
determined on the basis of the same behavioural model
for home loan savings account customers as the model
used in future margin simulations.
The second family of indicators includes the measurement
of economic equity capital (EEC) linked to global interest-
rate risk.
Measuring EEC enables an institution to demonstrate
its capacity to withstand adverse market developments
within a given confidence interval provided on the basis
of its equity capital.
Stress scenarios, based on historical or hypothetical
situations, provide a clearer understanding of the
institution’s risk profile, and are especially useful for
anticipating the measures that would need to be adopted
if such a scenario were to materialise.
Risk management
Interest-rate risk is managed either through the investing
in financial assets, by selecting maturity dates and coupon
indexation terms for those assets, or via fixed or optional
derivatives.
Risk exposure
-800
-600
-400
-200
0
200
400
Sens
itivi
ty to
equ
ity (i
n %
)
NPV
sen
sitiv
ity
-7.91%
-0.73%
-4.61%
-2.53%
-1.06%
0.79%
-6.70%
-10.21%-10.92%
-12.51%
-8.42%
-6.69%-7.43%
- 41 M€ -258 M€ - 142 M€ - 59 M€ -376 M€ -574 M€ - 613 M€ - 702 M€ - 473 M€ - 376 M€ - 432 M€ - 539 M€
44 M€
Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 June-13 July-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13-14%
-12%
-10%
-8%
-6%
-4%
-2%
2%
0%
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In accordance with the recommendations of the Basel
Committee, a sudden and parallel 200-basis point increase
in interest rates was used to calculate the economic value
sensitivity of the balance sheet. This indicator is calculated
on a static balance sheet, without taking new generation
into account. Assets and liabilities with no contractual
maturity date are liquidated in accordance with the
scenarios approved by the Bank’s ALM Committee.
Sensitivity to global interest rate risk peaked in August
2013, when the interest rate liquidity gap reached 12.5%
compared with an internal limit of 15% (this limit is set at
20% in the Basel Regulations).
The level of volatility displayed by this indicator is due first
to the size of the Group’s shareholders’ equity, and second
to a significant downward movement in the yield curve,
which had a significant impact on outflow models and on
the amounts invested in 2013.
33.7 Credit risk
The Risk Department reports to the Risk Committee on the
drafting and implementation of the system for monitoring
and managing credit risk relating to the retail and corporate
banking businesses.
In terms of risk monitoring procedures, the Risk
Department defines the monthly credit risk monitoring
indicators approved by the Risk Committee.
The Risk Department covers credit risk, as defined in
Article 4 of Regulation 97-02 (amended), namely the risk
incurred in the event that a counterparty or counterparties
considered as a single beneficiary within the meaning of
Article 3 of Regulation 93-05 defaults.
33.7.1 Credit risk on transactions with retail customers
In terms of retail customers lending, La Banque Postale’s
activities that give rise to a credit risk include:
home loans to individuals and SCI property investment
companies (La Banque Postale and its subsidiary BPE);
overdrafts and means of payment extended to individuals
(La Banque Postale and its subsidiary BPE);
consumer loans (La Banque Postale Financement, BPE,
as well as La Banque Postale for previous loans granted
to Le Groupe La Poste staff);
personal micro-loans (La Banque Postale).
Risk management
Within the La Banque Postale Group, the Group Risk
Department is in charge of defining the risk-taking rules
and the tools used for managing the generated risks, of
overseeing the effective application of the rules and the
proper functioning of the tools.
It monitors changes in risk thanks to the indicators that it
has defined, examines the most significant commitments
and makes sure that the Commitment Committees work
properly; it also performs a regulatory oversight role and
provides assistance to operational staff in the credit branch.
In order to fulfil its assignments within the La Banque
Postale Group successfully, the Group Risk Department
manages a “credit risk arm”, which includes a network
of correspondents in the Operations Department, in the
financial centres, in the Retail Banking Department and in
La Banque Postale’s subsidiaries.
Directly by La Banque Postale
The Risk Department amends the rules for granting and
committing to loans after receiving advice from the Retail
Banking Department, the Marketing Department, and the
Operations Department, with the aim of:
supporting the development of La Banque Postale’s
product range, and the businesses involved in granting
loans;
ensuring the control of the cost of risk on its loan
balances and new loans;
guaranteeing compliance with current regulations in the
customer loans area;
where management of inherent risk is concerned,
the Risk Department is responsible for the rules on
recovery, working together with the Legal Department
and the Operations Department, and with the Accounting
Department for the rules governing provisions for
accounts receivable.
Beyond the scope of its own remit, the Risk Department has
the credit risk “game plan” approved by the Risk Committee
(chaired by a member of the Executive Board), or by the
Executive Board, if requested by the Chairman of the Risk
Committee.
The Group Risk Department defines and implements tools
(scorecards and expert systems) for granting and managing
loans and overdrafts; it makes sure that they work properly,
assumes responsibility for any adjustments necessary, and
carries out regular back-testing.
It is responsible for credit risk standards, and informs the
Bank Marketing Line and the financial centres of the main
developments on a regular basis.
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By the subsidiary BPE
The lending policy of BPE is written by the Operations
Management and Commitments Department, approved
by the Executive Management, and is communicated to
BPE’s Board of Directors. It is approved by the Group Risk
Management Department.
The Operat ions Management and Commitments
Department is responsible for updating it, and reports to
La Banque Postale’s Group Risk Management Department.
The major evolutions of the risks management policy are
submitted for approval to the Group Risk Management
Department.
The most significant commitments of BPE are now
under the delegating responsibility of LBP’s Group Retail
Customers Lending Committee.
By La Banque Postale Financement
The distribution of consumer loans is performed by the
La Banque Postale Financement (LBPF) subsidiary, in
accordance with the guidelines from the parent company.
La Banque Postale Financement’s product range includes
a large variety of amortising loans (new and second-hand
vehicle loan, house works loan, project loan, buy-back loan).
This range was completed in late 2012 by a revolving credit
facility offer, intended to be different from other offers
on the market while respecting the Bank’s customers
interests, and offering a controlled solution to a temporary
cash need. This offer is exclusively reserved to those who
are already customers of La Banque Postale, and is granted
on the basis of a rating allowing to select risks.
Consumer loans are granted using a pre-targeting rating,
which includes the lowest default probabilities for each
segment of customers, and an acceptance rating applied
on receipt of the customer application.
The major evolutions of LBPF’s risks management policy,
notably concerning issue and rating rules, are guided by
La Banque Postale’s Group Risk Management Department
towards keeping cost of risk in line with the expectations
of La Banque Postale’s Executive Board. Thus, harder
conditions aimed at prospects, project loans, pre-targeting
rating can be decided as needed by the Group Risk
Management Department.
The surveillance of consumer loans risks is performed
at a consolidated level by the Group Risk Management
Department, in particular via a regular report to the Group
Risks Committee.
La Banque Postale’s loan guarantee system
General principle
The general principle is that any financing must be 100%
hedged by an “eligible” guarantee, i.e. offering a sufficient
hedging level:
asset-backed mortgage of the first rank or equivalent,
privilege of the money-lender, mortgage, pledge of
mortgage assets granted by a third party guaranteeing
the borrower’s debt;
pledge of financial products (life insurance contracts,
securities accounts, REIT units), in accordance with
the hedging ratio of the loan by the pledged savings,
as specified in the issuance conditions, depending of
the nature of the pledged assets (securities, bonds,
currency…);
guarantees provided by a guarantee body, authorised
by the Guarantee Providers Referencing Committee of
La Banque Postale.
By exception to the above principles
Some low amount house works loans are granted without
a guarantee.
Bridging loans can be granted without an “eligible”
guarantee, when the sale agreement or the promise of sale
for the asset that is the subject of the loan has been signed
and the conditions precedent in favour of the buyer of the
asset have been lifted. In that case, the bank can settle for
a simple promise to pledge the sold asset.
If the quality of the application file justifies it, La Banque
Postale can accept the guarantee provided by a private
individual as principal guarantee, within the limits set in
the issue conditions.
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Exposure to credit risk on transactions with retail customers
2013
(€ million)
Gross book value as at 31/12/2013
Gross off-balance sheet amount as at 31/12/2013
Total exposure as at 31/12/2013
Amounts outstanding
As a % of total exposure
Amounts outstanding
As a % of total exposure
Amounts outstanding % total
Home loans 49,985 96% 2,280 4% 52,265 76%
Consumer loans 3,404 92% 310 8% 3,714 5%
Ordinary accounts receivable 687 5% 12,069 95% 12,756 19%
Total 54,076 79% 14,659 21% 68,735 100%
In 2013, deferred debit card accounts are included in ordinary accounts receivable, whereas they were included on the line
“Other short-term facilities in 2012.
2012
(€ million)
Gross book value as at 31/12/2012
Gross off-balance sheet amount as at 31/12/2012
Total exposure as at 31/12/2012
Amounts outstanding
As a % of total exposure
Amounts outstanding
As a % of total exposure
Amounts outstanding % total
Home loans 45,155 95% 2,303 5% 47,458 75%
Consumer loans 2,643 98% 50 2% 2,693 4%
Ordinary accounts receivable 724 6% 11,941 94% 12,665 20%
Other short-term credit facilities 92 100% 92
Total 48,614 77% 14,294 23% 62,908 100%
The exposure position was relatively stable compared with the previous financial year.
The relative value of the "home loans" exposure remains stable at 76%. Conversely, La Banque Postale Financement’s
consumer loans business continued its expansion, and rose from 4% to 5% of total exposure, whereas the exposure of ordinary
accounts receivable decreased by 1 point.
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Guarantees obtained
2013
(€ million)
Asset-backed guarantee
Guarantee from a legal entity
Guarantee from an individual Unguaranteed
Gross book value as at 31/12/2013
Amounts outstanding %
Amounts outstanding %
Amounts outstanding %
Amounts outstanding %
Amounts outstanding %
Home loans
Performing 12,552 25% 35,623 72% 765 2% 707 1% 49,647 99%
Impaired 194 58% 132 39% 11 3% 337 1%
Total 12,746 35,755 765 718 49,984
Consumer loans
Performing 5 0% 8 0% 1 0% 3,257 100% 3,271 96%
Impaired 1 1% 132 99% 133 4%
Total 5 9 1 3,389 3,404
2012
(€ million)
Asset-backed guarantee
Guarantee from a legal entity
Guarantee from an individual Unguaranteed
Gross book value as at 31/12/2012
Amounts outstanding %
Amounts outstanding %
Amounts outstanding %
Amounts outstanding %
Amounts outstanding %
Home loans
Performing 9,707 22% 33,808 75% 749 2% 727 2% 44,990 100%
Impaired 82 50% 73 44% 10 6% 165 0%
Total 9,789 33,881 749 737 45,155
Consumer loans
Performing 1 0% 2,566 100% 2,566 97%
Impaired 1 1% 76 99% 77 3%
Total 1 1 2,642 2,643
The percentage of home loans guaranteed by a company
decreased notably (72% in December 2013, compared with
75% in December 2012). This difference was transferred in
favour of asset-backed guarantees.
Virtually all consumer loans outstanding are unguaranteed.
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Credit quality of assets that are neither in arrears nor impaired on an individual basis
2013
(€ million)Amounts
outstanding %
Performing home loans not in arrears 49,474 100%
in arrears 173
Total performing loans 49,647
Performing consumer loans not in arrears 3,243 99%
in arrears 28 1%
Total performing loans 3,271
2012
(€ million)Amounts
outstanding %
Performing home loans not in arrears 44,855 100%
in arrears 135
Total performing loans 44,990
Performing consumer loans not in arrears 2,540 99%
in arrears 26 1%
Total performing loans 2,566
The percentage of performing home loans with no arrears remained stable (99.7%). The percentage of consumer loans in
arrears remains at 1% of performing loans outstanding.
Financial assets in arrears
2013
(€ million)
Unimpaired amounts outstanding in arrears
Doubtful loans
Guarantees
<30 d
30 d to
60 d
60 d to
90 d
90 d to
180 d >180 d Total
Asset-
backed
guarantees
Guaranteed
by a legal
entity
Indivi-
duals
Ungua-
ranteed
Home loans 69 45 27 22 10 173 338 287 206 5 13
Consumer loans 17 11 28 133 1 160
Total 86 56 27 22 10 201 471 287 207 5 173
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2012
(€ million)
Unimpaired amounts outstanding in arrears
Doubtful loans
Guarantees
<30 d
30 d to
60 d
60 d to
90 d
90 d to
180 d Total
Asset-
backed
guarantees
Guaranteed
by a legal
entity
Indivi-
duals
Ungua-
ranteed
Home loans 67 33 17 18 135 165 134 150 4 11
Consumer loans 14 12 26 77 1 102
Total 81 45 17 18 161 242 134 151 4 113
Doubtful home loans outstanding increased by €170 million,
of which half (€86 million) stems from the entry of BPE into
the scope of consolidation.
The amount of unimpaired consumer loans in arrears and
doubtful loans increased by €56 million in 2013 compared
with 2012.
Analysis of assets impaired on an individual basis
2013
(€ million) Type of guaranteeAccounts
receivable
Applied guaranteed
amountDiscounted provisions
Discounted provisioning
rate
Doubtful home loans Asset-backed guarantee 163 110 56 35%
Guarantee from a legal entity 80 73 7 10%
Guarantee from an individual
Unguaranteed 14 2 12 86%
Doubtful by contagion not in arrears 80 70 10 12%
Total 337 255 85 25%
Consumer loans 133 1 68 51%
Doubtful ordinary accounts receivable 127 110 87%
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2012
(€ million) Type of guaranteeAccounts
receivable
Applied guaranteed
amountDiscounted provisions
Discounted provisioning
rate
Doubtful home loans Asset-backed guarantee 66 58 12 19%
Guarantee from a legal entity 41 40 1 3%
Guarantee from an individual 100%
Unguaranteed 9 9 100%
Doubtful by contagion not in arrears 49 47 7 13%
Total 165 145 29 18%
Consumer loans 77 27 35%
Doubtful ordinary accounts receivable 131 110 84%
The home loan provision rate increased from 18% to 25%
compared with the previous year (this increase is partly due
to the first-time consolidation of BPE).
The provision rate on ordinary accounts increased from 84%
to 87%. For consumer loans the rate went to 51%, compared
to 35% in the previous year.
33.7.2 Credit risk on transactions with legal entity customers
La Banque Postale’s activities that give rise to a credit risk
are on two levels:
as part of its commercial activity aimed at financing
the economy: La Banque Postale was granted a licence
to offer financing to Legal Entities from the French
Prudential Control Authority in September 2011.
The main customer segments served by the range
of products offered are currently: Companies, Local
Authorities, Public Health Companies, social housing
associations and Non-profit Associations;
as part of its intervention on the financial markets,
La Banque Postale is also required to manage the
credit risk arising on inter-bank cash transactions,
like deposits, loans, repos (which therefore relates to
financial institutions) and the issuer risk arising on the
debt securities traded in the trading room (Companies,
financial institutions, sovereign entities, and Local
Authorities).
These risks take the form of balance sheet, and off-balance
sheet commitments (guarantees, collateral, investments
made by La Banque Postale’s insurance subsidiaries, and
the undrawn portion of loans granted, etc.).
La Banque Postale has opted for a prudent approach and
gradual expansion.
The range of financing offered by La Banque Postale
currently includes: cash facilities, equipment leases,
medium-term loans for setting up and buying out
companies, bilateral or syndicated loans for Key Accounts,
and property leases.
In the 2013 financial year, La Banque Postale’s product
offering was extended to factoring, to medium-terms loans
for VMCs, SMCs and MSCs and to interest-rate hedging
transactions on behalf of third parties.
In 2012, La Banque Postale developed a financing offering
aimed for customers in the Social and Local Economy
(social housing associations, cooperative companies,
local and regional authorities, management voluntary
organizations, and local organizations): cash facilities (since
June 2012), and medium-term financing (since November
2012).
In the 2013 financial year, the product offering aimed at the
Local Public Sector was extended to:
loans with an early cash availability phase, personalised
amortisation loans, bridging loans;
social renting-buying loans (PSLA) aimed at social
housing operators with a PSLA agreement.
Lastly, La Banque Postale offers since June 2013 loans to
Public Health Companies (cash facilities, medium and long
term loans)
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Counterparty risk management
General provisions
La Banque Postale’s rules for granting and committing
to loans have been drawn up in compliance with CRBF
Regulation 97-02 (amended) on internal controls. They
specifically take the requirements of Articles 7 and 21.
The review and decision-making process is based on:
eligibility conditions, a review, and determining a financial
rating, as well as obtaining guarantees in some cases.
The aim of the risk management system selected for the
activity involving the financing of legal entities is to make
it possible to detect risks at all levels for each of the
activity’s processes (granting, management, collection and
provisioning). It is based on the following factors:
setting up a comprehensive credit committee system at
various levels within the Bank;
individual risk monitoring procedures and a management
platform for global risk:
- control procedures for delegations of authority,
- creation of a national Special Affairs and Disputes
unit, which is dedicated to the financing activities
dedicated to these non-Retail customer segments.
This unit assesses the customer’s situation and
their ability to recover, negotiates a voluntary
liquidation plan with the customer, takes part in
potential “banking pool” meetings, and manages the
relationship with administrators or court-appointed
liquidators, and mediators or ad hoc agents.
For SMEs, micro-businesses and voluntary organizations,
the general review and decision-making process is
supplemented by:
a specific banking behaviour score;
a delegation chain based on: (i) the quality of the
counterparty as measured by a La Banque Postale
rating (specific rating scales for these counterparties);
(ii) the overall balance outstanding for this customer
(or this group); (iii) the nature of the financing under
consideration.
For the Local Public Sector, supplementary provisions are
also set in place:
a specific rating system for each market (Local
Authorities, social housing associations, and Public
Health Companies);
a delegation chain based on the type of the counterparty,
its internal rating and the nature of the financing under
consideration;
the ability for La Banque Postale to refinance with the
Caisse Française de Financement Local its production of
medium and long term loans granted to Local Authorities
and Public Health Companies.
Transactions in an amount equal to or in excess of
€10 million must be approved by a member of the Executive
Board. The same applies of overruns of individual limits.
In terms of investment
In terms of investment, third parties are systematically
rated and assigned an individual limit designed to cap the
total amount of the commitment. Where applicable, these
individual limits are supplemented by so-called group
limits, which govern exposure to a group of third parties that
are considered as a single beneficiary within the meaning of
Article 3 of CRBF Regulation 93-05 (amended).
La Banque Postale’s universe is usually restricted to
investment grade counterparties and issuers, which
therefore have an internal rating of at least BBB-.
The minimum rating limit is lowered to BB- (according to
the ACP cross-reference tables, BB- corresponds to the
4: BB-to BB+ grade at Fitch and S&P; to the Ba1 to Ba3
grade at Moody’s; to the 4 to 5 grade at Coface; and to the
4 to 5+ grade at Fiben) in certain specific cases, primarily
as part of the expansion of the Major Corporate Customers
financing business, as long as the Bank maintains an
ongoing commercial relationship.
La Banque Postale can only perform repo, or stock or
fixed derivative lending transactions that expose it to a
counterparty risk, if there is a prior ISDA or FBF Framework
Agreement in place that includes collateralisation clauses.
The quantitative factors included in such agreements
(instruments concerned, threshold and frequency of margin
calls, and exemptions, etc.) are subject to approval by the
Risk Department.
The individual limits are supplemented by a set of limits
designed to control the risks of concentration on groups of
counterparties, which are classified in accordance with their
country of origin, their business sector and their internal
rating. The Risk Committee may review these diversification
limits on a monthly basis.
For Local Authorities only, an Annual Review of Risk
Authorizations has been put in place in the last quarter of
2013. This procedure allows a collective and comprehensive
review of the largest local authorities and sets annual
individual limits for each counterparty.
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Exposure to credit risk on market transactions with legal entities
2013
Category(€ million) Sovereign Bank Corporate
Public authority Securitisation Total
Financial assets at fair value through profit
or loss 157 4,698 384 5,239
Available-for-sale financial assets 3,022 7,098 1,644 74 5 11,843
Loans and receivables—Credit institutions 558 81,912 12 400 82,882
Customer loans and receivables 655 225 2,763 1,489 227 5,361
Assets held to maturity 30,345 1,921 32,266
Balance sheet exposure net of impairment 34,737 95,854 4,803 1,563 632 137,591
Rating(€ million) AAA AA A Other Total
Financial assets at fair value through profit or loss 61 1,383 2,981 814 5,239
Available-for-sale financial assets 1,847 2,601 4,324 3,071 11,843
Loans and receivables—Credit institutions 77,424 3,284 1,151 1,023 82,882
Customer loans and receivables 837 478 648 3,396 5,361
Assets held to maturity 2,791 27,307 549 1,619 32,266
Balance sheet exposure net of impairment 82,960 35,053 9,653 9,923 137,591
Geographical area(€ million) France
Euro zone
Non-euro zone Total
Financial assets at fair value through profit or loss 2,827 1,677 735 5,239
Available-for-sale financial assets 6,311 4,015 1,517 11,843
Loans and receivables—Credit institutions 82,565 215 102 82,882
Customer loans and receivables 4,721 640 5,361
Assets held to maturity 24,797 6,606 863 32,266
Balance sheet exposure net of impairment 121,221 13,153 3,217 137,591
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2012
Category(€ million) Sovereign Bank Corporate
Public authority Securitisation Total
Financial assets at fair value through
profit or loss 848 5,392 551 6,791
Available-for-sale financial assets 2,714 5,422 1,708 10 1 9,855
Loans and receivables—Credit institutions 711 80,125 12 407 81,254
Customer loans and receivables 172 1,002 112 254 1,540
Assets held to maturity 34,668 2,280 88 37,036
Balance sheet exposure net of impairment 39,112 93,219 3,362 122 662 136,476
Rating(€ million) AAA AA A Other Total
Financial assets at fair value through profit or loss 387 2,382 3,624 398 6,791
Available-for-sale financial assets 2,824 2,974 2,576 1,481 9,855
Loans and receivables—Credit institutions 861 77,055 2,865 473 81,254
Customer loans and receivables 141 193 133 1,073 1,540
Assets held to maturity 3,081 29,341 2,461 2,152 37,036
Balance sheet exposure net of impairment 7,295 111,945 11,659 5,577 136,476
Geographical area(€ million) France
Euro zone
Non-euro zone Total
Financial assets at fair value through profit or loss 4,355 2,003 432 6,791
Available-for-sale financial assets 6,348 2,792 716 9,855
Loans and receivables—Credit institutions 79,361 1,771 122 81,254
Customer loans and receivables 1,456 84 1,540
Assets held to maturity 27,006 8,585 1,444 37,036
Balance sheet exposure net of impairment 118,526 15,235 2,714 136,476
Financial assets held to maturity
These are high-quality assets that consist mainly of loans
issued or guaranteed by euro zone Member States, as
shown in the tables above. Sovereign issuers amount to 94%
of the portfolio. Furthermore, issuers with a Tier 1 rating
(AAA to A-) account for 93% of the positions in the portfolio.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include
both securities and derivatives. Bank issuers account for
the bulk of financial assets at fair value through profit or
loss (90% of the positions in the portfolio).
As shown in the three tables above, these are high quality
assets.
Loans and receivables—Credit institutions
La Banque Postale enters into inter-bank transactions (both
deposits and securities borrowing/lending) in the normal
course of its business.
The counterparty risk relating to inter-bank deposits is
managed in the same way as issuer risk (these transactions
are included in individual, group and diversification limits).
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es,ernts 20
As at the end of December 2013, La Banque Postale’s inter-
bank deposits amounted to €81.9 billion.
These deposits are mainly deposits made with the
Caisse des Dépôts as backing for the funds gathered on
Sustainable Development, Livret A passbook savings
accounts and Popular savings accounts. The remainder of
inter-bank deposits is with French banks that are rated at
least A+.
The counterparty risk relating to securities lending and
repurchase is limited by the fact that La Banque Postale
only works with these instruments after it has finalised
a framework agreement requiring the arrangement of
collateral. As a result, the credit risk on repo and reverse
repo transactions as at 31 December 2013 was extremely
low.
Commitments to financial institutions increased by 2.8%
to €18.1 billion.
Exposure to credit risk on commercial transactions with legal entities
2013
(€ million)
Gross book value as at 31/12/2013
Gross off-balance sheet amount as at 31/12/2013
Total exposure as at 31/12/2013
Amounts outstanding
As a % of total
exposureAmounts
outstanding
As a % of total
exposureAmounts
outstanding % total
Finance lease operations 562 89% 67 11% 629 21%
Local public sector loans 2,185 37% 3,676 63% 5,861 192%
Loans to other legal entities 1,185 45% 1,427 55% 2,612 85%
Factoring 9 100% 9 0%
Ordinary accounts receivable 128 26% 363 74% 491 16%
Other 52 100% 52 2%
Total 4,069 42% 5,585 58% 9,654 100%
2012
(€ million)
Gross book value as at 31/12/2012
Gross off-balance sheet amount as at 31/12/2012
Total exposure as at 31/12/2012
Amounts outstanding
As a % of total
exposureAmounts
outstanding
As a % of total
exposureAmounts
outstanding % total
Finance lease operations 172 71% 69 29% 241 8%
Local public sector loans 181 10% 1,578 90% 1,759 58%
Loans to other legal entities 485 46% 576 54% 1,061 35%
Total 838 27% 2,223 73% 3,061 100%
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Risk relating to Local Public Sector
The risks concern primarily Local Public Authorities, as
La Banque Postale made them a priority when it launched
this financing activity in June 2012. The financing activity
aimed at social housing associations was progressively
launched during the year 2013.
As at 31 December 2013, loans amounting to €5.961 billion
had been authorised for the local sector, of which
€2.185 billion had been drawn down.
Nearly one billion euros in medium and long term loans
have been sold to CAFFIL in 2013, and thus do not appear
in these figures.
Risk relating to companies
As at 31 December 2013, La Banque Postale’s exposure
to the Corporate segment had greatly increased. This
substantial change reflects the launch of the corporate
lending business and the rise in authorizations given for
legal entities financing.
La Banque Postale’s exposure to companies consists mainly
of exposure to large French corporates.
Guarantees obtained on the loans granted to legal entities
2013
(€ million)
Asset-backed guarantee
Guarantee from a legal entity
Guarantee from an individual Unguaranteed
Gross book value as at 31/12/2013
Amounts outstanding %
Amounts outstanding %
Amounts outstanding %
Amounts outstanding %
Amounts outstanding %
Finance leases
Performing 25 4% 142 25% 3 1% 390 70% 560 100%
Doubtful 1 100% 1
Total 25 142 3 391 561
Local public sector loans
Performing 2,185 100% 2,185 100%
Doubtful
Total 2,185 2,185
Other legal entities loans
Performing 117 10% 228 19% 838 71% 1,183 100%
Doubtful 2 100% 2
Total 117 228 840 1,185
Factoring
Performing 9 100% 9 100%
Doubtful
Total 9 9
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2012
(€ million)
Asset-backed guarantee
Guarantee from a legal entity
Guarantee from an individual Unguaranteed
Gross book value as at 31/12/2012
Amounts outstanding %
Amounts outstanding %
Amounts outstanding %
Amounts outstanding %
Amounts outstanding %
Finance leases
Performing 8 5% 57 33% 3 2% 104 60% 172 100%
Doubtful
Total 8 5% 57 33% 3 2% 104 60% 172 100%
Local public sector loans
Performing 21 12% 160 88% 181 100%
Doubtful
Total 21 12% 160 88% 181 100%
Other legal entities loans
Performing 115 370 76% 485 100%
Doubtful
Total 115 24% 370 76% 485 100%
Credit quality of financial assets that are neither in arrears nor impaired on an individual basis
(€ million)
31/12/2013 31/12/2012
Amounts outstanding %
Amounts outstanding %
Finance lease operations not in arrears 560 100% 172 100%
in arrears 1
Total 561 172
Local public sector loans not in arrears 2,132 98% 181 100%
in arrears 53 2%
Total 2,185 181
Loans to legal entities not in arrears 1,183 100% 485 100%
in arrears
Total 1,183 485
Factoring not in arrears 9 100%
in arrears
Total 9
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Financial assets in arrears
2013
(€ million)
Unimpaired amounts outstanding in arrears
Doubtful loans
Guarantees
<30 d30 d to
60 d60 d to
90 d90 d to
180 d >180 d Total
Asset-backed
guarantees
Guaranteed by a legal
entityIndivi-duals
Ungua-ranteed
Finance lease
operations 1 1 2
Local public
sector loans 20 22 8 3 53 53
Factoring
Loans to other
legal entities 2 2
Total 20 23 8 3 56 57
As at 31 December 2012, doubtful loans to legal entities
outstanding amounted to €495,000, i.e. 0.7% of the total
outstanding amount. The provisions amounted to €228,000,
i.e. a provision rate of 46%.
Securitisations
La Banque Postale’s securitisation exposure amounted
to €632 million, which broke down between loans and
receivables—Credit institutions (€400 million), customer
loans and receivables (€227 million), and financial assets
available for sale (€5 million).
An investment was made with Oséo Financement in 2011,
in order to back Livret A passbook savings accounts
and Sustainable Development (LDD) accounts. Two
further investments were agreed by La Banque Postale’s
trading room, the first one where the underlying assets
are receivables due from the Greater Paris Transport
Association, the second one where the underlying assets
are receivables due from Italian drugstores.
Lastly, the other investments in this asset class were
transferred to La Banque Postale when it was founded in
2006 and are gradually phased out since that date.
For these reasons, the securitisation portfolio is of a high
quality: all the tranches in which La Banque Postale has
invested are of a rank 1 rating, and nearly 91% of the
positions are held in France.
The geographical breakdown of La Banque Postale’s
securitisations are as follows:
BREAKDOWN OF OUTSTANDING DEPOSITS
AS AT 31 DECEMBER 2013
0%Netherlands
1%Spain8%Italy 91%
France
As at 31 December 2013, La Banque Postale was not aware
of any significant deterioration in the credit quality of the
underlying assets in its securitisation portfolio. These
underlying assets consist mainly of home and residential
property loans, and receivables due from French institutions
and companies.
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The bulk of the securitisation portfolio balances consists of
receivables due from institutions and companies linked to
the Oséo Financement securitisation process.
The breakdown of La Banque Postale’s securitisation
portfolio by type of underlying asset was as follows:
BREAKDOWN OF OUTSTANDING DEPOSITS
AS AT 31 DECEMBER 2013
0%Personalloans
7%Residentialpropertyloans
93%Loans to
institutionsand companies
Exposure to counterparty risk
In the terminology used at La Banque Postale, counterparty
risk stems primarily from transactions involving futures.
Exposure is assessed via the present value method.
These transactions take place primarily with banking
counterparties. In this context, they are systematically
performed as part of agreements that provide for the
netting of exposure and the putting up of collateral with
regular margin calls.
The residual risk, which is subject to limits and is
periodically monitored by the Corporate Credit, Public
Sector and Institutional Risk Department, is not material.
La Banque Postale is exposed to counterparty risk primarily
in connection with transactions using fixed derivatives.
This risk is limited by the fact that La Banque Postale
only works with top-tier institutions, with which it has
signed a netting and collateral agreement. In addition, the
instruments used are mainly “plain-vanilla” interest rate
swaps.
As at the end of 2013, net exposure to those counterparties,
after taking any collateral in place into account, was
€19.7 million. These counterparties are all rated A or above.
(€ million) 31/12/2013 31/12/2012
Geographical area
Euro Zone 19.0 22.6
Non-euro zone 0.7 3.0
Total 19.7 25.6
BREAKDOWN OF OUTSTANDING DEPOSITS
AS AT 31 DECEMBER 2013
4%Non-euro zone
96%Euro zone
Concentration risk for each beneficiary
The regulations on major risks are applied in accordance
with the Decree of 25 August 2010, which specifies that
institutions must comply with the following limit: the total
amount of risks incurred in respect of a single beneficiary
must not exceed 25% of the Group net shareholders’ equity.
No beneficiary exceeded this limit as at 31 December 2013.
In addition, pursuant to Instruction 2010-I-01 issued by
the Prudential Control Authority, La Banque Postale has
declared 41 counterparties under the gross risk monitoring
framework, of which only 9 are considered as major risks.
33.7.3 Additional information on sovereign exposure
The list of sovereign exposures was prepared in accordance
with the scope defined by the European Banking Authority
(EBA), in other words by including the exposure data relative
to regional authorities, central authorities and businesses
guaranteed by the French government.
The exposure shown below summarises the exposure for
subsidiaries in which La Banque Postale owns an interest
of 50% or more.
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Sovereign exposures 2013
La Banque Postale does not have any exposure to Cyprus, Hungary and Egypt.
(€ million)Bank
portfolio
Assets at fair value through
profit or lossTotal direct exposure (a)
Off-balance sheet
Total direct and indirect exposure (b)
Exposure (as a %)
Greece
Ireland 1 1 95 96 0.3%
Italy 1,276 2 1,278 192 1,470 4.3%
Portugal 36 36 0.1%
Spain 1,184 1,184 1,184 3.4%
Total GIIPEs 2,461 2 2,463 323 2,786 8.1%
Germany 2,964 2,964 2,964 8.6%
Austria 16 16 16
Belgium 1,625 13 1,638 20 1,658 4.8%
France 24,523 142 24,665 21 24,686 71.7%
United Kingdom
Luxembourg 46 46 46 0.1%
Netherlands
Poland 11 11 11
Slovakia 1 1 1
Slovenia 3 3 3
Switzerland 3 3 3
Supra-national 1,387 1,387 1,387 4.0%
Total Europe 30,579 155 30,734 41 30,775 89%
Rest of the World 876 876 876 2.5%
Total 33,916 157 34,073 364 34,437 100%(a) Direct exposure: net book value (including impairment) of the Bank’s proprietary exposure.
(b) Direct and indirect exposure: direct exposure, plus indirect exposure through the guarantees granted to some of the Group’s UCITS.
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Change in exposure to GIIPS
Change in direct exposure (a)
(€ million)
December 2012 December 2013
Nominal value
Book value Impairment Maturity Disposals Transfer (c) Acquisitions
Nominal value
Book value
Greece
Ireland 1 1 1 1
Italy 27 27 50 77 81
Portugal (1,063) 1,063
Spain 3 2 711 713 751
Available-for-sale financial assets 31 31 (1,063) 1,774 50 791 833
Greece
Ireland
Italy 1,747 1,798 (585) 1,162 1,195
Portugal 1,144 1,156 (81) (1,063)
Spain 1,147 1,166 (5) (711) 431 433
Financial assets held to maturity 4,037 4,120 (671) (1,774) 1,593 1,628
Greece
Ireland
Italy
Portugal
Spain
Loans and receivables
Greece
Ireland
Italy (250) (550) 802 2 2
Portugal
Spain
Financial assets at fair value through profit or loss (b) (250) (550) 802 2 2
(a) Direct exposure: outstanding balances (including impairment) of proprietary exposure, not including the indirect exposure represented by the
guarantees granted to Group UCITS.
(b) Amounts representing the initial fair value on acquisition.
(c) La Banque Postale has modified in September 2013 its intention to hold a portion of its exposures to some countries until maturity. This change
resulted in the reclassification of €1,774 million in held-to-maturity investments to available-for-sale financial assets, in particular for Spain and
Portugal investments.
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Additional information on exposure to certain countries
As the Insurance sector exposures were immaterial, they have not been detailed below.
Breakdown by category
(€ million)Loans and
receivables
Available-for-sale
assets
Assets held to
maturityBank
portfolio (a)
Assets at fair value
through profit or loss (a)
Balance sheet
total after impairment
Off-balance sheet(b) Total
Greece
Ireland 1 1 1 95 96
Italy 81 1,195 1,276 2 1,278 192 1,470
Portugal 36 36
Spain 751 433 1,184 1,184 1,184
Total 833 1,628 2,461 2 2,463 323 2,786(a) The amounts shown are expressed at their net book value on the balance sheet.
(b) Off-balance sheet amounts correspond to indirect exposure through guarantees given, primarily to Group UCITS.
Breakdown of unrealised gains and losses recorded in reserves
(€ million)Available-for-sale
assetsLosses and gains
recorded in reservesFV
ranking
Greece
Ireland 1 N1
Italy 81 1 N1
Portugal
Spain 751 20 N1
Total 833 21
Impact of impairment
(€ million) TotalOf which
impairmentTotal before impairment
Greece
Ireland 96 96
Italy 1,470 1,470
Portugal 36 36
Spain 1,184 1,184
Total 2,786 2,786
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Breakdown by maturity
(€ million) Total
Remaining life in years
1 2 3 4 5 <10 >10
Greece
Ireland 96 95 1
Italy 1,470 208 686 197 298 75 6
Portugal 36 36
Spain 1,184 10 373 442 216 140 3
Total 2,786 313 1,095 640 514 215 9
Non-sovereign exposure to GIIPS 2013
(€ million) Bank CorporatePublic
authority Securitisation Total
Greece
Ireland 103 76 179
Italy 102 203 305
Portugal
Spain 470 110 580
Available-for-sale financial assets 675 389 1,064
Greece
Ireland
Italy
Portugal
Spain
Financial assets held to maturity
Greece
Ireland
Italy
Portugal
Spain
Loans and receivables
Greece
Ireland
Italy 343 52 395
Portugal
Spain 172 48 220
Financial assets at fair value through profit or loss 515 100 615
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33.8 Market risk
Even though La Banque Postale does not have a trading
business as such, it is exposed to market risk via its
Cash Management and Asset and Liability Management
activities (portfolio of available-for-sale assets and hedging
transactions).
The market portfolio, which includes all transactions that
are subject to market risk, not only covers the transaction
portfolio, as defined in Articles 298 and 299 of the
French Ministerial Decree of 20 February 2007 regarding
shareholders’ equity requirements for credit institutions
and investment firms, but also covers bank portfolio
transactions, including securities held for sale and certain
lending and borrowing transactions.
In terms of market risk management, La Banque Postale
is first and foremost exposed to interest-rate risk. Its credit
spread and equity market risk is lower, and its currency
risk, primarily the risk linked to international mandates and
financial activities, and commodities risk, is low.
Assessment of risk
The Bank has decided to apply a Value at Risk indicator
(1-day, 99%) to all its marked-to-market positions as a
cautionary measure. The limit of the indicator is reviewed
by the Risk Committee on a monthly basis.
VaR is a risk indicator that is widely used in the banking and
financial sector, in order to assess a portfolio of financial
instruments’ level of exposure to market risk.
This indicator seeks to project the amount of the loss
that a portfolio may incur. For instance, a 1-day 99% VaR
represents the amount of loss that would be statistically
exceeded in 1% of cases. This indicator can predict the
amount of potential loss in 99% of cases, but does not give
any indication of the amount of loss that would happen
in the remaining 1% of cases, and it assumes that the
positions could be unwound, or at least immunised, in
less than a day. Furthermore, this indicator does not take
some aspects of the financial markets into account, such
as asymmetrical distribution, fat tails, and correlated
movements, or the risk relating to intra-day movements.
La Banque Postale’s VaR indicator not only covers the
transaction portfolio (impact on fair value through profit
or loss), but also covers positions recognised as assets
available for sale (impact on shareholders’ equity).
The VaR implemented at La Banque Postale is a parametric
VaR, which is calculated based on a variance-covariance
matrix covering interest-rate risk, spread risk, currency
risk and the risk of fluctuations in the equity indices to
which the bank is exposed. In terms of risk factors, the
main approximation concerns the “specific interest-rate
risk”: the credit spread risk (to which bonds are sensitive)
is taken into account via a sector-rating approach which
only captures a portion of this type of risk.
This matrix is calculated with a scaling factor designed to
overweight recent changes compared with earlier ones.
Therefore, La Banque Postale’s implementation does not
cover second tier risks (convexity), which are actually a rare
occurrence for the Bank.
The VaR calculated in this way partially covers option risk,
although second-tier risks are not taken into account. The
development of option positions, which are currently not
material, could result in the Risk Department using a more
appropriate method.
The Risk Department back-tests the results of the model
used to calculate the VaR, in order to assess its quality.
This analysis is based not just on counting the number
of over-runs, but also assesses compliance with certain
assumptions, primarily the normality and Markovian
character of the distributions.
The VaR measurements are supplemented by monthly
stress tests designed to measure the Bank’s exposure to
market situations outside the confidence interval used to
calculate the VaR.
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Change in VaR (Value at Risk)
GLOBAL VAR
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
Dec-13Nov-13Oct-13Sep-13Aug-13Juky-13June-13May-13Apr-13Mar-13Feb-13Jan-13
Global VaR
Limit
La Banque Postale reclassified Portuguese and Spanish
investments in September 2013 from its held-to-maturity
investment portfolio to its available-for-sale portfolio, in
order to be able to actively manage its positions.
Simultaneously, the market risks limits were increased by
the Executive Board in order to account for this additional
exposure.
As of today, the Portuguese investments have all been sold.
The exposure to Spanish investments is now managed by
the trading room as part of its usual interest rate and credit
delegate management activity.
(€ million) 31/12/2013 31/12/2012
Global VaR 11.6 8.7
VaR of transactions recorded in the trading portfolio 2.4 2.0
Risk factor contribution to global VaR
(€ million) 31/12/2013 31/12/2012
Interest rates 7.3 1.9
Credit spreads 1.4 5.0
Currency 0.7 (0.2)
Equity markets 2.3 1.2
Volatility (0.1) (0.1)
Total 11.6 8.3
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Statistics for the 2013 financial year
(€ million) Moyenne Minimum Maximum
Global VaR 11.4 6.1 26.3
VaR of trading portfolio transactions 2.6 1.3 5.5
In 2013, the main event that had an impact on the VaR
was the announcement by the American Federal Reserve
that it would start to withdraw its exceptional cash supply
program. Markets volatility quickly decreased later on, and
the VaR returned to its previously observed levels.
The stress scenarios applied at 31 December 2013 show a
potential loss of €205 million, in the worst case.
NOTE 34 Additional information on financial instruments
34.1 Fair value of financial instruments by category
34.2 Methods for calculating the fair value of financial instruments
34.3 Impact of financial instrument on net profit/(loss) and equity
34.4 Financial hedging instruments
34.5 Reclassification of financial assets
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34.1 Fair value of financial instruments by category
The tables below show the fair value of the financial instruments on the balance sheet, and their breakdown according to
the IAS 39 categories:
AS AT 31 DECEMBER 2013
(€ million)
31/12/2013 Book value according to the IAS 39 categories
Book value
Fair value
Fair value
through profit
or loss Trading
Designated as fair value
through profit or
loss
Available-for-sale
assetsLoans and
receivables
Assets held to
maturity
Borrowings at
amortised cost Hedge
ASSETS
Bank assets
Customer loans and receivables 59,204 61,633 59,204
Receivables from credit institutions 82,894 83,102 82,894
Securities portfolio 49,784 52,110 5,366 11,898 32,266 253
Other current financial assets 1,200 1,200 1,102 99
Non-bank assets
Other non-current financial assets 942 942 548 269 94 31
Trade and other receivables 2,936 2,936 2,936
Other current financial assets 430 430 252 109 49 20
Cash held at post offices 612 612 612
Cash and cash equivalents 2,163 2,163 1,288 875
LIABILITIES
Bank liabilities
Liabilities to credit institutions 14,757 14,840 14,757
Customer transactions 166,583 166,602 166,583
Debt evidenced by a certificate
and other 6,790 6,845 112 6 6,301 372
Non-banking liabilities
Bonds and other financial debt 7,103 7,587 85 2,222 4,795
Trade and other payables 4,424 4,424 4,424
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AS AT 31 DECEMBER 2012
(€ million)
31/12/2012 Book value according to the IAS 39 categories
Book value
Fair value
Fair value
through profit
or loss Trading
Designated as fair value
through profit or
loss
Available-for-sale
assetsLoans and
receivables
Assets held to
maturity
Borrowings at
amortised cost Hedge
ASSETS
Bank assets
Customer loans and receivables 49,922 55,669 49,922
Receivables from credit institutions 81,254 81,368 81,254
Securities portfolio 54,281 57,446 6,900 9,891 37,036 454
Other current financial assets 1,305 1,305 1,179 126
Non-bank assets
Other non-current financial assets 894 894 595 139 114 47
Trade and other receivables 2,453 2,453 2,453
Other current financial assets 781 781 427 269 64 20
Cash held at post offices 719 719 719
Cash and cash equivalents 2,167 2,167 2,167
LIABILITIES
Bank liabilities
Liabilities to credit institutions 15,811 15,811 15,811
Customer transactions 160,393 160,395 160,393
Debt evidenced by a certificate
and other 7,185 7,185 105 6,544 536
Non-banking liabilities
Bonds and other financial debt 7,652 8,217 90 2,294 5,268
Trade and other payables 4,349 4,349 4,349
34.2 Methods for calculating the fair value of financial instruments
A. Financial instruments excluding Banking activities
The fair value of the bond debt and of the related swaps is
measured using a calculation method based on observable
data, which corresponds to Level 2 of the fair value ranking
established in IFRS 7. Details of this calculation method
are provided below.
Every financial product is assessed as a series of future
cash flows regardless of whether they are determined at
the calculation date. The fair value calculation is based on
discounting these future cash flows. The discounting factors
are deduced from a zero coupon curve, which is itself
determined based on a benchmark of interest-rate products
spread over more than 40 due dates. To calculate the fair
value of the bond debt, La Poste’s credit spread is added
to the zero coupon curve. La Poste’s implied credit spread
is determined based on price brackets supplied by various
market participants (brokers), which are adjusted for data
observed in the market (price and bracket dispersion).
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In the case of cash flows dependent on a floating-rate not
yet determined at the calculation date, future rates are
estimated based on the future structure of interest rates.
In the case of financial products with cash flows in different
currencies, the cash flows are discounted for each currency
based on discounting factors specific to each currency.
The currency market values obtained are then translated
into euros at the ECB exchange rate on the day of the
calculation.
Option products are determined by factoring in implied
market volatility, in view of the option exercise dates.
The fair value of current financial assets and liabilities
is deemed equivalent to their book value, in view of their
short-term maturity.
The fair value of bonds and UCITS units is determined
according to listed prices.
B. Financial instruments used in Banking activities
Fair value is the amount for which an asset could
be exchanged, or a liability extinguished between
knowledgeable and willing parties operating under normal
competition conditions. When an instrument is first
recognised, its fair value is usually the transaction price.
IAS 39 recommends initially using a listed price on an active
market to determine the fair value of a financial asset or
liability. A market is considered to be active if prices are
easily and regularly available from a stock exchange, a
broker, a trader or a regulatory agency, and if these prices
represent actual transactions carried out at arm’s length.
In the absence of an active market, fair value must be
determined using valuation techniques.
These techniques include the use of recent arm’s length
transactions. They are based on market data, the fair values
of substantially identical instruments, discounted cash
flow models or option pricing models, and use recognised
valuation methods. The aim of a valuation technique is to
establish what the instrument’s price would have been in
a normal market.
For example, the fair value of bonds, variable-income
securities and futures is determined according to listed
prices. Valuation techniques are used for over-the-counter
derivatives, discount securities (e.g. commercial paper, and
certificates of deposit, etc.) and repo deposits.
The market value of unlisted equity investments classified
as available-for-sale financial assets is determined with
reference to certain criteria such as net assets, the earnings
outlook and discounted future cash flows.
Unconsolidated investments where the fair value cannot be
measured reliably are valued at cost.
The listed price for an asset held or a debt to be issued is
usually the bid price, and the ask price for a debt held or an
asset to be acquired.
Fair value of loans
The scope applied is that of all loans drawn down and
included on La Banque Postale’s balance sheet. Loans
that have been granted but not yet released are not taken
into account, as it is assumed that, since their rate has just
been fixed, their value will not be different from the amount
advanced.
For the types of loans sold by the Bank, the main
assumptions underlying the calculation are as follows:
The fair value of overdrafts on sight accounts is assumed
to correspond to the accounting value. This seems a
conservative assumption given the interest rate charged
to customers (12%) and the very short length of the loans
(less than one month).
The fair value of loans is determined on the basis of
internal models, which consist in discounting future
recoverable capital and interest flows over the residual
maturity, which are discounted based on opportunity
interest rates.
Fair value of deposits
The main underlying assumptions for the calculation are
as follows:
For deposits where the remuneration rate is regulated,
Livret B (savings passbook) accounts, Youth passbook
savings accounts, National Savings Accounts and term
deposits accounts, fair value is assumed to correspond
to the net book value of the amount outstanding.
The fair value of sight deposits is assumed to correspond
to the net book value of the amount outstanding, net of
the fair cost value of the swaps used to hedge overnight
deposits (via the carve-out option).
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Fair value of held or issued debt instruments
The fair value of listed financial instruments corresponds to
the closing market price. The fair value of unlisted financial
instruments is determined by discounting future cash flows
at the market rate in effect at the closing date.
All of these instruments are deemed level 2, and the most
significant parameters with regard to the market value of
these instruments are considered indirectly observable.
C. Ranking of fair value assessments recognised on the balance sheet
The fair value ranking levels defined in IFRS 7 are as
follows:
Level 1: valuation determined by prices listed on an
active market;
Level 2: valuation determined by techniques using
observable data;
Level 3: valuation determined by techniques using
unobservable data.
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AS AT 31 DECEMBER 2013
(€ million) Level 1 Level 2 Level 3
Banking activities assets
Government securities and similar 105
Bonds and other fixed-income securities 1,719 3,375
Equities and other variable-income securities 40
Financial assets at fair value through profit or loss 1,863 3,375
Interest-rate derivatives 118
Foreign exchange derivatives 3
Equity and index derivatives 7
Trading derivatives 128
Interest-rate derivatives 129
Fair value hedging derivatives 129
Interest-rate derivatives 92
Cash flow hedging derivatives 92
Government securities and similar 2,049 36
Bonds and other fixed-income securities 8,658 93
Equities and other variable-income securities 1,061
Unconsolidated investments 0 127
Available-for-sale financial assets 11,769 129 127
Non-banking activities assets
Other non-current financial assets 304 638
Trade and other receivables 2,936
Other current financial assets 252 179
Cash held at post offices 612
Cash and cash equivalents 1,061 1,102
Banking activities liabilities
Debt evidenced by a certificate 6
Financial liabilities designated at fair value through profit or loss 6
Interest-rate derivatives 73
Foreign exchange derivatives 6
Other derivative instruments 20
Equity and index derivatives 12
Trading derivatives 112
Interest-rate derivatives 372
Fair value hedging derivatives 372
Non-banking activities liabilities
Bonds and other financial debt 7,103
Trade and other payables 4,424
Reclassifications from Level 1 to Level 2: Assets: €2.2 million, Liabilities: none.
Reclassifications from Level 1 to Level 3: Assets: €3.9 million, Liabilities: none.
Reclassifications from Level 2 to Level 1: Assets: €130 million, Liabilities: none.
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AS AT 31 DECEMBER 2012
(€ million) Level 1 Level 2 Level 3
Banking activities assets
Government securities and similar 289
Bonds and other fixed-income securities 2,438 4,017
Equities and other variable-income securities 47
Financial assets at fair value through profit or loss 2,774 4,017
Interest-rate derivatives 104
Foreign exchange derivatives 3
Equity and index derivatives 2
Trading derivatives 109
Interest-rate derivatives 161
Fair value hedging derivatives 161
Interest-rate derivatives 126
Cash flow hedging derivatives 126
Government securities and similar 1,919 41
Bonds and other fixed-income securities 6,468 456
Equities and other variable-income securities 1,007
Unconsolidated investments 4 0 108
Available-for-sale financial assets 9,398 497 108
Non-banking activities assets
Other non-current financial assets 187 707
Trade and other receivables 2,453
Other current financial assets 328 453
Cash held at post offices 719
Cash and cash equivalents 1,054 1,113
Banking activities liabilities
Debt evidenced by a certificate 6
Financial liabilities designated at fair value through profit or loss 6
Interest-rate derivatives 77
Foreign exchange derivatives 7
Other derivative instruments 16
Equity and index derivatives 5
Trading derivatives 105
Interest-rate derivatives 563
Fair value hedging derivatives 563
Non-banking activities liabilities
Bonds and other financial debt 7,652
Trade and other payables 4,349
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LEVEL 3 FAIR VALUES: RECONCILIATION OF OPENING AND CLOSING BALANCES
(€ million)
Assets at fair value
through profit or
loss
Assets designated
at fair value through profit
and lossTrading
derivativesHedging
derivatives
Available-for-sale
assets Total
Opening balance 108 108
Gains and losses recorded in income (1) (1)
Gains and losses recorded in equity 15 15
Purchases
Sales (1) (1)
Issues
Redemptions
Other movements
Reclassifications to or from Level 3 4 4
Closing balance 127 127
LEVEL 3 FAIR VALUES: PROFITS AND LOSSES FOR THE PERIOD RECOGNISED IN INCOME
None.
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34.3 Impact of financial instrument on net profit/(loss) and equity
Non-banking activities
The impact of the Group’s financial instruments on income (excluding Banking activities) is described in Note 13 “financial
profit / (loss)”.
Banking activities
The table below details the impact of the Banking activities financial instruments on income and equity.
2013
(€ million)
Interest income
(expense)
Changes in fair value
ImpairmentDeconsolidation
and dividendsNet gain
(loss)
Fair value through
profit or loss
Fair value through
equity
Loans, receivables and payables 1,899 (154) 1,745
Assets held to maturity 1,127 1,127
Available-for-sale assets 246 28 129 403
Financial instruments at fair
value through profit or loss 23 23
Total 3,272 23 28 (154) 129 3,298(a) (b) (c) (d) (e)
2012
(€ million)
Interest income
(expense)
Changes in fair value
ImpairmentDeconsolidation
and dividendsNet gain
(loss)
Fair value through
profit or loss
Fair value through
equity
Loans, receivables and payables 1,278 (60) 1,218
Assets held to maturity 1,324 108 1,432
Available-for-sale assets 209 216 5 163 593
Financial instruments at fair
value through profit or loss 244 244
Total 2,811 244 216 53 163 3,487(a) (b) (c) (d) (e)
(a) Corresponds to the net difference between “Interest and similar income” and “Interest and similar expenses” included in NBI (see Note 7).
(b) Corresponds to the “Net gains and losses on financial instrument transactions at fair value through profit or loss” line in NBI.
(c) Corresponds to the amount recognised in the change in equity for the year.
(d) + (e) Corresponds to the “Net gains or losses on available-for-sale assets” line in NBI.
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34.4 Financial hedging instruments
Non-banking activities
The effects of hedging the fair value of the bonds on the consolidated financial statements are shown in Note 30.
Banking activities
Hedging derivatives used in the Banking activities (see Note 3.L.6) broke down as follows:
(€ million)
Fair value hedges Cash flow hedges
Hedging of net investments in foreign
currencies Total
Positive fair value
Negative fair value
Positive fair value
Negative fair value
Positive fair value
Negative fair value
Positive fair value
Negative fair value
Interest rate derivatives
31/12/2012 161 563 125 286 563
31/12/2013 129 372 92 221 372
The table below presents a breakdown of the impact of Banking activities hedging transactions on income:
(€ million)
2013 2012
Fair value hedges
Cash flow hedges
Hedging of net investments
in foreign currencies
Fair value hedges
Cash flow hedges
Hedging of net investments
in foreign currencies
Interest income
on hedging transactions 151 287
Interest expense
on hedging transactions (210) (437)
Net interest income (expense) on hedging transactions (59) (150)
Net change in the fair value
of hedged and hedging
instruments (12) 1
Inefficiency
Net change in fair value on hedging transactions (12) 1
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34.5 Reclassification of financial assets
In 2008, La Banque Postale chose the option provided by
the 13 October 2008 amendment to IAS 39 and IFRS 7 to
reclassify certain available-for-sale financial assets under
“loans and receivables”.
This amendment allows financial assets other than
derivatives and financial assets designated at fair value
through profit or loss to be reclassified outside the fair value
through profit or loss category in exceptional circumstances.
It also enables financial assets to be transferred from the
available-for-sale category to loans and receivables if they
meet the definition for those assets on the reclassification
date, and the entity intends and is able to hold them for the
foreseeable future, or to maturity.
The transfer of part of the securities in the available-
for-sale financial assets portfolio that no longer had the
expected liquidity to the loans and receivables category
enables the financial statements to provide a better view of
La Banque Postale’s allocation of resources.
The reclassifications were carried out at fair value on 1 July
2008.
There were no further reclassifications in 2013 and 2012.
Amounts reclassified
Amounts before tax(€ million)
31/12/2013 31/12/2012
Balance sheet
amountFair
value
Balance sheet
amountFair
value
Available-for-sale assets reclassified to the loans and receivables category 5 4 25 24
The maturity of these two assets ranges between 2028 and 2036.
Amounts recognised in income and in equity in respect of the reclassified assets
Amounts before tax(€ million)
31/12/2013 31/12/2012
Income Equity Income Equity
Available-for-sale assets reclassified to the loans and receivables category - - - -
Interest and similar expenses on treasury and inter-bank transactions - - - -
Impairment - - - -
Unrealised gains and losses on available-for-sale assets - - - -
Amounts that would have been recognised in income and equity had these assets not been reclassified
Amounts before tax(€ million)
31/12/2013 31/12/2012
Income Equity Income Equity
Available-for-sale assets reclassified to the loans and receivables category
Impairment
Unrealised gains and losses on available-for-sale assets (1) (1)
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34.6 Offsetting of financial instruments
The following disclosures present the information required by IFRS 7 on financial instruments that are offset on the balance
sheet, as well as on financial instruments that are not offset on the balance sheet, but are subject to an enforceable master
netting arrangement or a similar agreement.
Non-banking derivative instruments
2013(€ million)
Gross amount
Offset amount
on balance sheet
Net amount
on balance sheet
Amounts not offset on balance sheet
Net amounts
A B C=A-BDerivative
instruments DCollateral
cash E F=C-D-E
Derivative assets 419 419 52 365 1
Derivative liabilities 69 69 52 17 0
Derivative assets on cash management
funds
Derivative liabilities on cash management
funds 16 16 14 2
2012(€ million)
Gross amount
Offset amount
on balance sheet
Net amount
on balance sheet
Amounts not offset on balance sheet
Net amounts
A B C=A-BDerivative
instruments DCollateral
cash E F=C-D-E
Derivative assets 549 549 52 486 11
Derivative liabilities 88 88 52 36 0
Derivative assets on cash management
funds 3 3 3 0 0
Derivative liabilities on cash management
funds 14 14 3 9 2
La Poste has put framework agreements in place with all of
its market counterparties in order to reduce its exposure if
its market counterparties default. These agreements result
in the losing counterparty paying a guarantee deposit to
the winning counterparty in cash, equivalent to the net
position of the derivatives. Margin calls occur weekly or
daily, according to the counterparties. These agreements
do not comply with the criteria in IAS 32 governing the offset
of derivative assets and liabilities on the balance sheet. They
do, however, fall within the scope of disclosures under the
IFRS 7 standard on offsetting.
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Banking financial instruments
2013(€ million)
Gross amount
Offset amount
on balance sheet
Net amount
on balance sheet
Amounts not offset on balance sheet
Off-balance sheet
securitiesNet
amounts
A B C=A-BFinancial
instruments DCollateral
Cash D E F=C-D-E
Financial assets
Derivatives 349 349 145 147 57
Repos and securities loans 4,828 2,832 1,996 6 1,985 5
Other financial assets 2 2 1 1
Financial liabilities
Derivatives 463 463 145 229 89
Repos and securities loans 18,914 2,832 16,082 111 15,765 206
Other financial liabilities 1 1 1
2012(€ million)
Gross amount
Offset amount
on balance sheet
Net amount
on balance sheet
Amounts not offset on balance sheet
Off-balance sheet
securitiesNet
amounts
A B C=A-BFinancial
instruments DCollateral
cash D E F=C-D-E
Financial assets
Derivatives 396 396 172 116 108
Repos and securities loans 2,226 1,686 540 399 140 0
Other financial assets
Financial liabilities
Derivatives 652 652 172 390 90
Repos and securities loans 19,509 1,687 17,823 399 4 17,068 351
Other financial liabilities
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NOTE 35 Related party transactions
35.1 Relations with the French government and public sector companies
35.2 Relations with consolidated companies
35.3 Remuneration of administration and management bodies
35.1 Relations with the French government and public sector companies
Relations with the French government
Since the 10 February 2010 Act reaffirming the provisions
of the July 1990 Act on the restructuring of the postal and
telecommunications public service, La Poste has been
a public limited company overseen by the Minister for
Industry under the Minister for the Economy, Industry and
Employment, and subject to economic and financial control
by the French government, and to the control procedures
of the French Court of Auditors and the French Parliament.
A new business contract was signed on 1 July 2013 between
La Poste and the French government for the 2013-2017
period. This contract updates the respective commitments
of La Poste and the French government for the next five
years, in particular:
maintaining the public service missions that have been
entrusted to La Poste: Universal Postal Service, Press
transportation and delivery, Banking Accessibility and
Regional Planning, maintaining the cost compensation
principle for these three latter missions;
a reinforcement of quality of service commitment;
missions adapted to users' expectations and technological
advancements;
The introduction of citizen commitments to promote the
development of corporations and territories, act in favour
of disadvantaged people, develop a digital society and
engage in corporate social responsibility.
The French Postal Regulation Act of 20 May 2005 provided
ARCEP with the power to regulate pricing for the Universal
Postal Service on a multi-year basis, after reviewing
La Poste’s proposals. The Act also confirmed and clarified
La Poste’s regional development responsibilities.
In the case of the Group’s Banking activities, the French
government sets the commission rates on regulated
savings products, i.e. Livret A passbook savings accounts,
Sustainable Development savings accounts and Popular
Savings accounts. The change in these rates has a direct
impact on La Banque Postale’s Net Banking Income.
Relations with public sector companies
Le Groupe La Poste enters into transactions, under market
conditions, with public sector companies in the normal
course of its business.
35.2 Relations with consolidated companies
Transactions performed between fully consolidated
Group companies are eliminated on consolidation and are
therefore not discussed in this Note.
Transactions with equity associates primarily relate to CNP Assurances, with which La Banque Postale has signed a
commercial partnership agreement, resulting in the payment of commissions. The impact on the Group’s financial statements
of transactions with CNP Assurances of transactions are summarised in the table below:
(€ million) 31/12/2013 31/12/2012
Income 516 538
Expenses
Accounts receivable 92 47
Liabilities 65 52
Transactions with other equity associates and joint ventures are not material.
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35.3 Remuneration of administration and management bodies
The remuneration of Le Groupe La Poste senior executives
amounted to €5.8 million in total for the year ended
31 December 2013 (€5.1 million in 2012). Senior executives
do not benefit from any specific post-employment benefits.
The Group’s main senior executives are the members of the
Board of Directors and of the Executive Committee.
NOTE 36 Off-balance sheet commitments and contingent liabilities
36.1 Lease commitments
36.2 Banking activities commitments
36.3 Other commitments given
36.4 Other commitments received
36.5 Other commitments
36.6 Contingent liabilities
36.1 Lease commitments
The minimum future payments for operating leases where the Group is the lessee broke down as follows:
(€ million) 31/12/2013 31/12/2012
Less than 1 year 520 495
1 to 5 years 915 878
Over 5 years 423 422
Total 1,858 1,795
Operating lease payments amounted to €668 million in 2013 (€623 million in 2012).
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36.2 Banking activities commitments
The contractual value of commitments given and received as part of La Banque Postale’s business activities is as follows:
(€ million) 31/12/2013 31/12/2012
Financing and guarantee commitments and commitments on securities given
Financing commitments
to credit institutions 305 70
to customers 20,197 17,312
Guarantee commitments
to credit institutions 412 383
to customers (a) 3,278 2,771
Commitments on securities to be delivered 2,072
Financing and guarantee commitments and commitments on securities received
Financing commitments
from credit institutions (b) 3,316 2,038
from customers 970
Guarantee commitments
from credit institutions 29,516 25,727
from customers 8,543
Commitments on securities to be received 236 3
Other commitments given (b)(c) 5,021 1,677(a) Guarantee commitments on UCITS losses.
(b) Commitments given (€2,505 million) and received (€2,336 million) as part of the “3 G” guarantee management arrangement with the Banque de
France, which allows banks to jointly manage all collateral relating to their refinancing transactions with Banque de France.
(c) In 2013, this includes commitments of €2,370 million relating to home loans given in guarantees of bonds issued by La Banque Postale Home Loan
SFH, the housing financing company of the Group.
Commitments related to Crédit Logement
Le Groupe La Poste has undertaken to maintain Crédit
Logement’s basic equity, in proportion to its 6% interest,
so that Crédit Logement can meet its solvency ratio.
The Group has undertaken, where applicable, to
replenish Crédit Logement’s mutual guarantee fund,
which covers borrower default on the loans held on
Crédit Logement’s books. This commitment, which
corresponds to the proportion of loans distributed by
La Poste’s network, amounted to €412 million as at
31 December 2013.
36.3 Other commitments given
A. Guarantees and endorsements
Total guarantees and endorsements given amounted to
€14 million as at 31 December 2013.
B. Vendor warranties
When Chronopost SA sold Taxicolis and Mat Courses to
Flash Europe International, it stood as guarantor for tax
and social security liabilities, as well as for any shortfalls
in the assets or liabilities provisioned in the financial
statements for the year ended 31 December 2007. This
warranty will expire once the relevant tax, customs and
social security risks have lapsed.
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C. Commitments relating to the acquisition of Seur
Under the shareholders’ agreement signed on 10 March
2008 with Seur franchisees who were shareholders in Seur
SA, GeoPost granted each shareholder an individual put
option with the following terms and conditions:
sale of all the shares in Seur S.A. to GeoPost. The Group
recorded the corresponding debt;
sale of the shares in the franchises owned;
the option exercisable over a period of 20 years as from
10 March 2008, subject to the acquisition of a franchise
by GeoPost subsequent to this agreement;
the purchase obligation guaranteed by GeoPost is
subject to an annual ceiling of €100 million.
These options have been in place since the acquisition of
the Teruel franchise by GeoPost in March 2009.
D. Commitment to acquire non-current assets
In 2011, La Poste made a commitment to Renault to order
10,000 electrical vehicles by 2015. As at 31 December 2013,
this commitment represented an amount of €129 million.
E. Other
On 8 March 2012, La Poste signed an agreement to promote
the employment of disabled people over the period between
2012 and 2014. The financial commitment relating to
disability as part of this agreement amounted to €38 million
as at the end of December 2013.
36.4 Other commitments received
A. Guarantees and endorsements
Total guarantees and endorsements received amounted to
€45 million as at 31 December 2013, including €37 million
for La Poste.
B. Credit facilities
La Poste has a five-year, €650 million revolving credit
facility expiring in October 2018, under the terms of
which it has received commitments from the nine banks
in the banking pool. This facility had not been used as at
31 December 2013.
In October 2013, BNPP granted a firm 5-year credit
facility to La Poste for an amount of €75 million. This
facility had not been used as at 31 December 2013.
C. Property sale commitments
La Poste has entered into property sale commitments that
are expected to be completed in 2014. As at 31 December
2013, the total amount of commitments received in this
respect amounted to €124 million.
D. Call options on securities
On 21 December 2000, Caisse d’Épargne Group granted
Le Groupe La Poste an unreserved irrevocable call option
on CNP Assurances shares and additional securities
representing 2% of the share capital of CNP Assurances.
E. Commitments relating to the acquisition of Seur
Pursuant to the acquisition of 10 Seur franchises in
2009 (Teruel, Cordoba, Albacete, Cartagena, Palencia,
Lugo, Segovia, Parcel Vallès, Orense and Badalona),
seller warranties were given for a period of two years
from the companies’ handover. This period extends to
five years for tax and social security liabilities. There is
no limit on the amount of guarantees provided. These
commitments include bank guarantees for all of the
franchises acquired from Seur S.A., except Badalona.
As at 31 December 2013, only the guarantees relating to
the tax and social security risks remained.
As part of the contribution of Guadalpack to GeoPost
Spain in July 2012, the contract included guarantees
given by the vendor for a period of 18 months as from
taking control or until the underlying risk lapses
(primarily in respect of tax risks).
For the acquisition of Transvaleria by GeoPost España
Parcel on 2 March 2012, the sellers made a deposit of
€80,000 as a liabilities guarantee, decreasing €20,000
each year. This guarantee will end on 2 March 2016.
As part of the acquisition of Transportes Urgentes
Guadalajara on 10 July 2013, guarantees were granted
by the sellers, in accordance with legal time frames
and obligations, for a duration of 52 months for tax and
social obligations and for a duration of 18 months for
other guarantees, starting from the signature date. The
sellers also made a deposit of €500,000 as a liabilities
guarantee, the amount of which decreases €100,000
each year. This guarantee will end on 10 July 2018.
Under the acquisition of Transcoba on 26 July 2013, the
contract provides for guarantees agreed to by the sellers,
in accordance with legal time frames and obligations, for
a duration of 52 months for tax and social obligations
and for a duration of 18 for other guarantees, starting
from the signature date. Additionally, the sellers made a
deposit of €600,000 as a liabilities guarantee, decreasing
€150,000 each year, which will end on 26 July 2017.
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F. Commitments relating to the acquisition of Yurtiçi Kargo
As part of GeoPost’s acquisition of minority interests in
Yurtiçi Kargo in February 2007, the vendors granted GeoPost
unlimited warranties for two years from the acquisition
date. The length of these warranties may be adjusted in
specific circumstances, i.e.:
in the event of tax litigation, one year as from the tax
assessment notice;
in the event of litigation regarding the warranties
between Yurtiçi Kargo and the vendors, 10 years as from
the acquisition date.
G. Commitments relating to the acquisition of Pegasus
The agreement for the purchase of Pegasus shares by
Armadillo Holding GmbH, which was signed in 2008,
included guarantees given by ADL, the vendor, for two years
as from taking control or until the underlying risk lapses,
(primarily in respect of tax risks).
H. Commitments relating to the acquisition of DPD Croatia and DPD Slovenia
As part of GeoPost’s 2008 acquisition of shares in the DPD
Adriatic entities, warranties were given by the vendor.
These warranties run for two years as from the acquisition,
except with regard to the legal status and legal capacity of
the seller (five years) and in the event of a tax assessment
(until the statute of limitations lapses).
I. Commitments relating to the acquisition of Biocair
When IBC Inc. acquired Biocair in August 2012, guarantees
were granted by the vendors for a period that depends
on the litigation in question (seven years as from the
date of notification of tax litigation, and no later than
31 December 2013 for other litigation). The guarantee can
only be triggered if the total amount of the dispute exceeds
GBP100,000, and is capped at 75% of the amounts in
dispute.
J. Commitments relating to the acquisition of BPO (formerly Extelia)
As part of the acquisition of Extelia in 2008, the vendor
granted an unlimited warranty with respect to regulatory
compliance risks for a period of 10 years.
K. Commitments relating to the acquisition of Sogec
As part of the December 2010 acquisition of the Sogec
Group, the vendor granted the following warranties, which
were limited to a percentage of the €42 million enterprise
value as at the acquisition date: 15% in the first year, then
10%, 5% and 1.5%. This warranty runs until 28 February
2014 with respect to tax liabilities, until 28 February 2015
with respect to social security liabilities and expired on
12 June 2012 for all other liabilities.
L. Commitments relating to the acquisition of Media Prisme
As part of the acquisition of the Media Prisme Group in
March 2011, a price reduction clause covering potential
damages was granted by the vendor, for a maximum
amount that decreases every year: €2 million for the first
year, then €1.33 million, €660,000, and finally €330,000.
This cover runs for the entire duration of the statutory
period of limitations plus two months for tax and social
security liabilities and for three years for all other liabilities.
M. Commitments relating to the acquisition of Cabestan
As part of the acquisition of Cabestan in July 2012, a price
reduction clause covering potential damages was granted
by the vendor, for a maximum amount that decreases every
year: €1 million for the first year, then €667,000, and finally
€330,000. This cover runs for the entire duration of the
statutory period of limitations plus two months for tax and
social security liabilities and for three years for all other
liabilities.
N. Commitments relating to the acquisition of MixCommerce
As part of the acquisition of MixCommerce in October 2012,
a price reduction clause covering potential damages was
granted by the vendor, for a maximum amount of €800,000.
This cap only applies to the claims relating to the ownership
of shares by the vendors and the transferability of these
shares. The guarantee will remain in place until 30 June
2014.
O. Commitments relating to the acquisition of Adverline
As part of the acquisition of the Adverline Group in June
2012, a price reduction clause covering potential damages
was granted to the buyer by the vendor, for a maximum
amount of €1.5 million for general risk and for an amount
of €1 million for specific risks relating to employer and
employee contributions (free share allocations). This
clause runs for the entire duration of the statutory period
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of limitations plus one month for tax and social security
liabilities and for two years for all other liabilities.
P. Commitments relating to the acquisition of Orium
As part of the acquisition of Orium in August 2012, a
price reduction clause covering damages arising from an
inaccuracy, a breach or an omission in the representations
and guarantees given by the vendor, and to a decrease in
the asset or an increase in the liability was granted by the
vendor, based on the following mechanism:
1st year: 20% of the sale price (€8.9 million) and of any
potential earn-outs (ceiling 1);
2nd year: the higher of the following two amounts: 15% of
the sale price and of any potential earn-outs, or the total
amount of the claims made by the buyer in connection
with the price reduction clause that have not been finally
settled during the first year up to the limit of the ceiling
(ceiling 2);
3rd year: the higher of the following two amounts: 10% of
the sale price and of any potential earn-outs, or the total
amount of the claims made by the buyer in connection
with the price reduction clause that have not been
definitively settled during the first two years up to the
limit of the ceilings 1 and 2 (ceiling 3);
4th year: the higher of the following two amounts: 5% of
the sale price and of any potential earn-outs, or the total
amount of the claims made by the buyer in connection
with the price reduction clause that have not been finally
settled during the first three years up to the limit of the
ceilings 1, 2 and 3 (ceiling 4).
This cover runs for three years as from the acquisition date,
and for the length of the statutory limitation period plus
three months for tax and social security issues.
Q. Commitments relating to the acquisition of Morin Logistic
As part of the acquisition of Morin Logistic in December
2012, a price reduction clause covering damages arising
from an inaccuracy, a breach or an omission in the
representations and guarantees given by the vendor, and
to a decrease in the asset or an increase in the liability was
granted to the buyer by the vendor up until 31 December
2016, based on the following terms:
the claims made until 30 April 2014 will be capped at
€2.5 million for general risks;
claims after this date shall only apply to employee-
related or tax risks, and shall be capped at €1.5 million.
This guarantee was used in 2013 for a total amount of
€565,000.
R. Commitments relating to the Asendia joint-venture
As part of the foundation of Asendia, a joint-venture
with Swiss Post, the Group granted a price reduction
clause capped at €5 million (except for pensions, tax and
competition law risks, for which there is no limit on the
amount of guarantees provided). In return, Swiss Post
granted a similar price reduction clause to Le Groupe
La Poste.
These clauses run for a period of three to 10 years starting
in July 2012, depending on the nature of the risks covered.
S. Commitments relating to the acquisition of Worldnet Shipping Express
When the acquisition by GeoPost SA of Worldnet Shipping
Express took place on 13 June 2012, guarantees were given
by the sellers of up to GBP300,000 for a duration of six
years, on tax disputes.
T. Commitments relating to the acquisition of DTDC
At the time of the equity investment in DTDC on 4 July 2013,
guarantees were given by the sellers for a duration of one
year and for up to 5% of the purchase price, i.e. INR 79
million. These guarantees cover any dispute or violation that
took place prior to the purchase by GeoPost SA.
U. Commitments relating to the acquisition of Colizen
When Chronopost SA purchased Colizen securities on
27 February 2013, guarantees were given by the sellers
for inaccuracies or breaches in the tax or social security
information provided. The compensation will be effective
for damages greater than €40,000 and for up to €800,000
for any claim within two years following the transfer, then
€400,000 beyond two years.
36.5 Other commitments
A. Shareholders’ agreement regarding CNP Assurances
The French government, Caisse des Dépôts, Caisse
Nationale des Caisses d’Épargne et de Prévoyance (CNCE),
Le Groupe La Poste and Sopassure have entered into a
shareholders’ agreement regarding CNP Assurances.
The agreement, which was set to expire on 31 December
2008, was extended to 31 December 2015 as part of the
agreements entered into by the partners in June 2006. The
commercial agreements between CNP Assurances and
Caisses d’Épargne and La Banque Postale have also been
extended until the end of 2015.
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Pursuant to the asset transfer agreement between La Poste
and La Banque Postale, La Poste’s rights and obligations
under this shareholders’ agreement were taken over by
La Banque Postale.
B. Commitments relating to the acquisition of a portion of the SAS Carte Bleue shares
As part of SF2’s acquisition of an interest in SAS Carte
Bleue, La Poste has undertaken to retain a majority interest
in its SF2 subsidiary.
In addition, SF2 has granted La Poste a call option over
all of the shares and related rights to the SAS Carte Bleue
share capital that La Poste could exercise should it become
a minority shareholder in SF2. In this event, the purchase
price of the SAS Carte Bleue shares shall be jointly agreed
upon between La Poste and SF2.
Pursuant to the asset transfer agreement between La Poste
and La Banque Postale, La Poste’s rights and obligations
under this shareholders’ agreement were taken over by
La Banque Postale.
C. Individual Training Rights (DIF or Droit individuel à la formation)
Rights earned and not used by Group staff in respect of
Individual Training Rights amounted to:
over 12.3 million hours for contract staff;
over 12.1 million hours for government employees.
36.6 Contingent liabilities
The Group is not aware of any material risks for which no
provision has been recorded in the consolidated financial
statements.
NOTE 37 Banking activities balance sheet
37.1 La Banque Postale sub-group balance sheet (in banking format)
37.2 Banking assets and liabilities by residual maturity
37.1 La Banque Postale sub-group balance sheet
ASSETS
(€ million) 31/12/2013 31/12/2012
Cash on hand and at central banks 1,570 2,726
Financial assets at fair value through profit or loss 5,367 6,900
Hedging derivatives 221 287
Available-for-sale financial assets 12,782 10,688
Loans and receivables—Credit institutions 82,894 81,254
Customer loans and receivables 59,204 49,922
Revaluation adjustment on interest-rate hedged portfolios 130 293
Financial assets held to maturity 32,266 37,036
Tax assets 138 138
Accruals and other assets 2,295 3,576
Investments in equity associates 2,522 2,327
Tangible and intangible assets, and investment properties 969 848
Net goodwill—Assets 36 36
Elimination of investments (3,419) (3,191)
Total 196,974 192,838
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LIABILITIES
(€ million) 31/12/2013 31/12/2012
Financial liabilities at fair value through profit or loss 118 111
Hedging derivatives 372 563
Inter-bank and similar transactions: Liabilities to credit institutions 14,757 15,812
Customer transactions 166,583 160,393
Debt evidenced by a certificate 4,300 4,537
Revaluation adjustment on interest-rate hedged portfolios 9
Tax liabilities 34 22
Accruals and sundry liabilities 3,593 5,035
Underwriting reserves of insurance companies 817 674
Provisions 678 557
Subordinated debt 829 850
Non-controlling interests (20) (20)
Equity, Group share 4,147 3,783
Consolidated reserves and other 3,576 3,258
Net profit/(loss) Group share 571 525
Balance of intra-group transactions—Impact on income
Balance of intra-group transactions—Impact on the balance sheet 758 522
Total 196,974 192,838
37.2 Banking assets and liabilities by residual maturity
(€ million)Maturities of under 1 year
Maturities of over 1 year or indefinite Total
Assets by residual maturity
Cash and central bank deposits 1,570 - 1,570
Securities portfolio 10,329 40,306 50,635
Receivables from credit institutions 79,008 3,886 82,894
Customer loans and receivables 7,421 51,783 59,204
Liabilities by residual maturity
Other financial liabilities 49 441 489
Liabilities to credit institutions 12,304 2,453 14,757
Liabilities to customers 157,568 9,015 166,583
Debt evidenced by a certificate 3,000 1,301 4,300
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Consolidated financial statements
es,ernts 20
NOTE 38 Notes to the consolidated cash flow statement
38.1 Reconciliation between net profit/(loss) and cash flows from operating activities before the cost of net financial debt and tax
38.2 Depreciation, amortisation and impairment
38.3 Change in working capital requirement
38.4 Change in balance of banking sources and uses
38.5 Outflows for acquisitions of tangible and intangible assets
38.6 Proceeds from new borrowings
38.7 Redemption of borrowings
38.8 Other cash flows from financing activities
38.9 Change in net cash of Banking activities
38.1 Reconciliation between net profit/(loss) and cash flows from operating activities before the cost of net financial debt and tax
(€ million) Note 2013 2012
Consolidated net profit/(loss) 635 481
Share in profits of equity associates (215) (180)
Unrealised gains and losses on fair value adjustments (excluding Banking activities) 28 58
Gains and losses on disposal (including dilution) 13 (63)
Net changes in provisions 214 271
Depreciation, amortisation and impairment Note 38.2 1,002 993
Other non-cash income and expenses (9) (15)
Operating cash flow after the cost of net financial debt and tax 1,668 1,544
Cost of net financial debt (a) 167 164
Corporation tax (including deferred taxes) 127 231
Cash flows from operating activities before cost of net debt and taxes 1,962 1,939(a) Excluding change in unrealised gains and losses on fair value adjustments.
38.2 Depreciation, amortisation and impairment
(€ million) 2013 2012
Additions to and reversals of amortisation of operating profit/(loss) 1,006 978
Additions to and reversals of amortisation of financial profit/(loss) (4) (4)
Impairment of goodwill 19
Total 1,002 993
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38.3 Change in working capital requirement
(€ million) 2013 2012
Change in inventories and work-in-progress 70 (49)
Change in operating receivables (155) 45
Change in operating payables and other operating assets and liabilities 76 139
Total 12 136
38.4 Change in balance of banking sources and uses
(€ million) 2013 2012
Change in Banking activities securities portfolio 4,497 1,756
Change in Banking activities loans and receivables (6,770) (4,885)
Change in credit institution receivables (Banking activities) (1,440) (6,123)
Change in other Banking activities current financial assets 113 255
Change in liabilities to credit institutions (Banking activities) (3,238) 5,040
Change in customer transactions (Banking activities) 5,447 4,157
Change in other financial liabilities (Banking activities) (385) (383)
Change in accruals (Banking activities) (371) (99)
Total (2,149) (281)
38.5 Outflows for acquisitions of tangible and intangible assets
(€ million) 2013 2012
Acquisitions of intangible assets (239) (265)
Acquisitions of tangible assets (752) (811)
Change in payables to suppliers of non-current assets (6) 12
Total (997) (1,065)
38.6 Proceeds from new borrowings
(€ million) 2013 2012
Bonds 250 750
Borrowings from credit institutions 2 2
Commercial paper 150
Other borrowings and similar debt
Total 402 752
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38.7 Redemption of borrowings
(€ million) 2013 2012
Bonds (726)
Borrowings from credit institutions (14) (8)
La Poste savings bonds (2) (5)
Commercial paper (666)
Other borrowings and similar debt (1) (1)
Borrowings on finance leases (15) (18)
Total (759) (698)
38.8 Other cash flows from financing activities
(€ million) 2013 2012
Collection of deposits and guarantees received 1 116
Repayment of deposits and guarantees received (120) (6)
Other 22 (47)
Total (97) 63
38.9 Change in net cash of Banking activities
(€ million) Note 2013 2012
Cash and central bank deposits (assets) 2,726 2,644
Sight loans and receivables—credit institutions (assets) 252 92
Sight loans and receivables—credit institutions (liabilities) (77) (166)
Opening 2,901 2,570
Cash and central bank deposits (assets) 23.2 1,570 2,726
Sight loans and receivables—credit institutions (assets) 30.1 148 252
Sight loans and receivables—credit institutions (liabilities) 30.1 (110) (77)
Closing 1,608 2,901
Net decrease (increase) in cash and cash equivalent from Banking activities (1,293) 331
of which impact of changes in consolidation scope 287
Net decrease (increase) in cash and cash equivalent from Banking activities before impact of changes in consolidation scope (1,580) 331
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NOTE 39 Fees paid to the Statutory Auditors
Pursuant to Decree No.2008-1487 of 30 December 2008, the fees paid to the Statutory Auditors recognised by La Poste and
its consolidated companies in the income statement are set out below.
2013
(€ million excl. tax) KPMG % Mazars %
Statutory audit, certification, review of separate and consolidated financial statements
parent company 0.6 25% 0.7 18%
fully consolidated subsidiaries 1.7 70% 2.4 63%
2.3 95% 3.1 81%
Other due diligence and services relating directly to the Statutory Auditors’ assignment
parent company 0.1 2%
fully consolidated subsidiaries 0.1 4% 0.3 8%
0.1 4% 0.4 10%
Other services provided to fully consolidated companies by the partnership 1% 0.4 9%
Total 2.5 100% 3.8 100%
2012
(€ million excl. tax) KPMG % Mazars %
Statutory audit, certification, review of separate and consolidated financial statements
parent company 0.6 28% 0.6 16%
fully consolidated subsidiaries 1.4 63% 2.6 67%
2.0 91% 3.2 83%
Other due diligence and services relating directly to the Statutory Auditors’ assignment
parent company 0.2 8% 0.3 8%
fully consolidated subsidiaries
0.2 8% 0.3 8%
Other services provided to fully consolidated companies by the partnership 1% 0.4 10%
Total 2.2 100% 3.9 100%
NOTE 40 Post-balance sheet events
None.
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NOTE 41 Scope of consolidation
Company Country
% of interest
% of control
Method of consolidation
2012 2013 2012 2013 2012 2013
Consolidating company
La Poste
44, boulevard de Vaugirard
75757 Paris Cedex 15
Parcels & Express segment
GeoPost France 100.00 100.00 100.00 100.00 FC FC
GeoPost SI France 100.00 100.00 100.00 100.00 FC FC
Sodexi France 25.00 35.00 25.00 35.00 EM EM
Télintrans France 100.00 100.00 100.00 100.00 FC FC
Pickup Services France 82.47 82.47 82.47 82.47 FC FC
La Navette Pickup France 100.00 100.00 FC
La Consigne France 100.00 100.00 FC
GeoPost Intercontinental sub-group
GeoPost Americas Inc United States 100.00 100.00 100.00 100.00 FC FC
Tigers limited United States 71.11 65.88 FC
Chronopost International Burkina Faso Burkina Faso 40.00 40.00 40.00 40.00 EM EM
Chronopost International Côte d'Ivoire Ivory Coast 50.00 50.00 50.00 50.00 FC FC
Chronopost International Niger Niger 50.00 50.00 50.00 50.00 FC FC
Chronopost International Algérie Algeria 100.00 100.00 100.00 100.00 FC FC
IBC Inc United States 70.00 70.00 70.00 70.00 FC FC
IBC Trinidad Trinidad & Tobago 61.60 61.60 88.00 88.00 FC FC
DPD Laser South Africa 75.00 75.00 75.00 75.00 FC FC
DPD Continental India India 60.00 100.00 60.00 100.00 PC FC
DTDC India 42.53 42.53 PC
Lenton Group Ltd Hong Kong 30.00 30.00 30.00 30.00 EM EM
Chronopost sub-group
Chronopost France 100.00 100.00 100.00 100.00 FC FC
Colizen France 40.00 40.00 EM
Chronopost International Cameroun Cameroon 100.00 100.00 100.00 100.00 FC FC
Chronopost International Portugal Portugal 100.00 100.00 100.00 100.00 FC FC
Maroc Chrono INTL Morocco 34.00 34.00 34.00 34.00 EM EM
Sci Intel immo France 100.00 100.00 100.00 100.00 FC FC
GeoPost Central Europe sub-group
GeoPost IMDH GmbH Germany 100.00 100.00 100.00 100.00 FC FC
GeoPost Immobilien (merger with DPD GeoPost
Gmbh) Germany 100.00 100.00 FC
GeoPost Service Germany 100.00 100.00 100.00 100.00 FC FC
FC: Full consolidation EM: Equity Method PC: Proportional consolidation NC: Non-consolidated company
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Company Country
% of interest
% of control
Method of consolidation
2012 2013 2012 2013 2012 2013
Chronopost International Deutschland Germany 100.00 100.00 100.00 100.00 FC FC
DPD GeoPost Gmbh Germany 100.00 100.00 100.00 100.00 FC FC
DPD Aschaffenburg Germany 84.04 84.04 84.04 84.04 FC FC
Iloxx AG Germany 100.00 100.00 100.00 100.00 FC FC
Versandtarif Gmbh (merger with Chronopost
International Deutschland) Germany 100.00 100.00 FC
B2C Russia holding Gmbh Germany 24.50 24.50 24.50 24.50 EM EM
Tiramizoo Gmbh Germany 20.29 20.29 EM
DPD Belgium NV Belgium 100.00 100.00 100.00 100.00 FC FC
DPD Luxembourg SA Luxembourg 100.00 100.00 100.00 100.00 FC FC
DPD Netherland BV Netherlands 100.00 100.00 100.00 100.00 FC FC
DPD Czech Republic Czech Republic 100.00 100.00 100.00 100.00 FC FC
DPD Ukraine Ukraine 25.50 25.50 25.50 25.50 PC PC
DPD Schweiz AG Switzerland 100.00 100.00 100.00 100.00 FC FC
DPD Betriebsgesellschaft Germany 84.04 84.04 100.00 100.00 FC FC
DPD Vertriebsgesellschaft Germany 84.04 84.04 100.00 100.00 FC FC
DPD Delicom Germany 84.04 84.04 100.00 100.00 FC FC
DPD Polska Poland 100.00 100.00 100.00 100.00 FC FC
DPD strefa paczki Poland 100.00 100.00 100.00 100.00 FC FC
DPD Slovakia Sro Slovakia 100.00 100.00 100.00 100.00 FC FC
GeoPost YK Servisi AS Turkey 51.00 51.00 51.00 51.00 FC FC
DPD Hungaria Hungary 100.00 100.00 100.00 100.00 FC FC
GTR logistic (merger with DPD Hungaria) Hungary 100.00 100.00 FC
DPD Croatia doo Croatia 100.00 100.00 100.00 100.00 FC FC
DPD Estonia Estonia 100.00 100.00 100.00 100.00 FC FC
DPD Latvija Latvia 100.00 100.00 100.00 100.00 FC FC
DPD Lithuania Lithuania 100.00 100.00 100.00 100.00 FC FC
DPD Belarus Belarus 50.00 50.00 50.00 50.00 PC PC
Armadillo Bizpak Russia 50.00 50.00 50.00 50.00 PC PC
Armadillo One (merger with Armadillo Bizpak) Russia 50.00 50.00 PC
B2C Russia 24.50 24.50 24.50 24.50 EM EM
Armadillo Holding Gmbh Germany 50.00 50.00 50.00 50.00 PC PC
GeoPost Bulgaria ood Bulgaria 50.51 50.51 100.00 100.00 FC FC
Air Cargo Poland Poland 100.00 100.00 100.00 100.00 FC FC
TD Express services SARL France 100.00 100.00 100.00 100.00 FC FC
DPD Austria Austria 25.57 25.57 25.57 25.57 EM EM
DPD RO SA Romania 50.99 50.99 99.98 99.98 FC FC
DPD SA (formerly DPD SRL) Romania 50.00 50.00 50.00 50.00 PC PC
DPD Kazakhstan Kazakhstan 50.00 50.00 50.00 50.00 PC PC
DPD Slovenien Slovenia 100.00 100.00 100.00 100.00 FC FC
FC: Full consolidation EM: Equity Method PC: Proportional consolidation NC: Non-consolidated company
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Company Country
% of interest
% of control
Method of consolidation
2012 2013 2012 2013 2012 2013
Yurtiçi Kargo Servisi AS Turkey 25.00 25.00 25.00 25.00 EM EM
GeoPost Spain sub-group
GeoPost Espagne Spain 91.39 91.90 91.39 91.90 FC FC
Seur GeoPost Spain 91.39 91.90 100.00 100.00 FC FC
Menexpres Spain 91.39 91.90 100.00 100.00 FC FC
GeoPost Espana Parcel (merger with Seur
GeoPost) Spain 91.39 100.00 FC
Seur SA Spain 54.36 59.47 52.04 61.18 FC FC
Seur Internacional Spain 91.39 91.90 100.00 100.00 FC FC
Seur Espana Operaciones Spain 54.36 59.47 52.04 100.00 FC FC
Seur Gerencia de Riesgos Spain 54.36 59.47 52.04 100.00 FC FC
Seur Integracion Logistica Spain 54.36 59.47 52.04 100.00 FC FC
Correduria de Seguros Spain 54.36 59.47 52.04 100.00 FC FC
Integracion Logistica Valencia Spain 54.36 59.47 52.04 100.00 FC FC
Barcino Pack Spain 24.19 26.46 24.18 44.50 EM EM
Transjaen Spain 51.61 59.47 52.04 100.00 FC FC
Guadalpack SL (merger with Seur GeoPost) Spain 91.39 100.00 FC
Transp, Urgente Guadalajara SL Spain 91.90 100.00 FC
Transcoba SL Spain 91.90 100.00 FC
GeoPost UK sub-group
GeoPost Intermediate Holding United Kingdom 100.00 100.00 100.00 100.00 FC FC
GeoPost Uk Ltd United Kingdom 100.00 100.00 100.00 100.00 FC FC
UK Letter Limited United Kingdom 100.00 100.00 100.00 100.00 FC FC
DPD Uk Ltd United Kingdom 100.00 100.00 100.00 100.00 FC FC
Interlink Express Plc United Kingdom 100.00 100.00 100.00 100.00 FC FC
Interlink Express Parcels Ltd United Kingdom 100.00 100.00 100.00 100.00 FC FC
Castlegate United Kingdom 100.00 100.00 100.00 100.00 FC FC
DPD Ireland Ltd (formerly Interlink Ireland Ltd) Ireland 100.00 100.00 100.00 100.00 FC FC
GeoPost Ireland Limited Ireland 100.00 100.00 100.00 100.00 FC FC
GeoPost Holding Ltd United Kingdom 100.00 100.00 100.00 100.00 FC FC
Parceline Ltd United Kingdom 100.00 100.00 100.00 100.00 FC FC
DPD Limited United Kingdom 100.00 100.00 100.00 100.00 FC FC
Mail Plus Limited United Kingdom 100.00 100.00 100.00 100.00 FC FC
Worldnet Shipping Express ltd United Kingdom 20.00 20.00 20.00 20.00 PC PC
Biocair United Kingdom 70.01 70.00 100.00 100.00 FC FC
Exapaq sub-group
SCI EXALAB France 100.00 100.00 100.00 100.00 FC FC
SCI EXA Immo France 100.00 100.00 100.00 100.00 FC FC
SCI EXAMURS PARIS France 100.00 100.00 100.00 100.00 FC FC
Exapaq SAS France 100.00 100.00 100.00 100.00 FC FC
FC: Full consolidation EM: Equity Method PC: Proportional consolidation NC: Non-consolidated company
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Company Country
% of interest
% of control
Method of consolidation
2012 2013 2012 2013 2012 2013
Mail segment
Sofipost France 100.00 100.00 100.00 100.00 FC FC
Mix commerce France 100.00 100.00 100.00 100.00 FC FC
Docapost BPO IS France 65.00 65.00 65.00 65.00 FC FC
Gescomail France 65.00 65.00 100.00 100.00 FC FC
Somepost France 100.00 100.00 100.00 100.00 FC FC
Docapost Suisse Switzerland 74.13 74.13 FC
STP France 100.00 100.00 100.00 100.00 FC FC
SCI STP Immo France 100.00 100.00 100.00 100.00 FC FC
Sérès France 66.00 66.00 66.00 66.00 FC FC
Sérès Allemagne Germany 66.00 100.00 FC
Docapost BPO SAS France 100.00 100.00 100.00 100.00 FC FC
Docapost BPO on line France 100.00 100.00 100.00 100.00 FC FC
CNPT Docapost BPO France 66.00 66.00 66.00 66.00 FC FC
Sefas France 100.00 100.00 100.00 100.00 FC FC
Sefas Inc United States 100.00 100.00 100.00 100.00 FC FC
Sefas Ltd United Kingdom 100.00 100.00 100.00 100.00 FC FC
Sefas Espana Spain 100.00 100.00 FC
CER Docapost BPO sas France 50.98 50.98 50.98 50.98 FC FC
Sofadev Docapost BPO Morocco 50.98 50.98 100.00 100.00 FC FC
T2IS Docapost BPO Morocco 50.98 50.98 100.00 100.00 FC FC
Sérès Espagne Spain 66.00 66.00 100.00 100.00 FC FC
Asendia Switzerland 50.00 50.00 50.00 50.00 PC PC
Docapost DPS France 100.00 100.00 100.00 100.00 FC FC
Docapost CSP France 100.00 100.00 100.00 100.00 FC FC
Maileva France 100.00 100.00 100.00 100.00 FC FC
Certinomis France 100.00 100.00 100.00 100.00 FC FC
Mediapost sa France 100.00 100.00 100.00 100.00 FC FC
Mediaprisme sas France 81.68 81.68 81.68 81.68 FC FC
Matching sas France 81.67 81.67 81.67 81.67 FC FC
Media prisme SP Spain 81.68 81.68 100.00 100.00 FC FC
Media prisme UK United Kingdom 81.68 100.00 FC
Media prisme BE Belgium 81.68 81.68 100.00 100.00 FC FC
Cabestan France 100.00 100.00 100.00 100.00 FC FC
Orium France 100.00 100.00 100.00 100.00 FC FC
Orium Gmbh Germany 100.00 100.00 100.00 100.00 FC FC
Financière Adverline France 86.06 90.00 86.06 90.00 FC FC
Adverline France 85.20 89.41 98.87 99.22 FC FC
Société France 85.20 89.41 100.00 100.00 FC FC
FC: Full consolidation EM: Equity Method PC: Proportional consolidation NC: Non-consolidated company
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Company Country
% of interest
% of control
Method of consolidation
2012 2013 2012 2013 2012 2013
KP Média France 85.20 89.41 100.00 100.00 FC FC
Maison France 85.20 89.41 100.00 100.00 FC FC
Oxeva France 59.66 62.61 70.03 70.03 FC FC
Vertical Mail France 85.20 89.41 100.00 100.00 FC FC
CKFD France 86.06 90.00 100.00 100.00 FC FC
Mediapost Publicité France 100.00 100.00 100.00 100.00 FC FC
SMP France 100.00 100.00 100.00 100.00 FC FC
SOGEC Marketing France 100.00 100.00 100.00 100.00 FC FC
SOGEC Datamark Services France 100.00 100.00 100.00 100.00 FC FC
SOGEC Informatique France 100.00 100.00 100.00 100.00 FC FC
SOGEFINAD France 100.00 100.00 100.00 100.00 FC FC
SOGEC Deutschland Germany 100.00 100.00 100.00 100.00 FC FC
SOGEC Gestion France 100.00 100.00 100.00 100.00 FC FC
Budget Box France 40.01 40.01 40.01 40.01 EM EM
Mediapost SGPS Portugal 51.00 100.00 51.00 100.00 FC FC
Mediapost Distribuiçao Postal Portugal 51.00 100.00 100.00 100.00 FC FC
Mediapost Galex Distribucion y Logistica Portugal 51.00 100.00 100.00 100.00 FC FC
Eurobussula LDA Portugal 51.00 100.00 100.00 100.00 FC FC
Celeris LDA Portugal 51.00 100.00 100.00 100.00 FC FC
Orbitroad LDA Portugal 51.00 100.00 100.00 100.00 FC FC
Xange Capital France 34.87 34.87 34.87 34.87 EM EM
Docapost Conseil France 100.00 100.00 100.00 100.00 FC FC
Orsid SAS France 100.00 100.00 100.00 100.00 FC FC
ViaPost (ex SF18) France 100.00 100.00 100.00 100.00 FC FC
Neolog France 100.00 100.00 100.00 100.00 FC FC
Neopress France 100.00 100.00 100.00 100.00 FC FC
Média-Presse France 100.00 100.00 100.00 100.00 FC FC
Neopress Direct France 100.00 100.00 100.00 100.00 FC FC
Greenovia France 100.00 100.00 100.00 100.00 FC FC
Nouvelle Attitude SAS France 66.01 100.00 66.01 100.00 FC FC
NA Handena France 64.69 98.00 FC
Morin développement France 100.00 100.00 100.00 100.00 FC FC
Morin logistic France 100.00 100.00 FC
Morin GPM France 100.00 100.00 FC
Morin logistic sud France 100.00 100.00 FC
Neopress Routage France 66.00 66.00 66.00 66.00 FC FC
Médiapost holding France 100.00 100.00 100.00 100.00 FC FC
Doc@post France 100.00 100.00 100.00 100.00 FC FC
La Poste Global Mail France 100.00 100.00 100.00 100.00 FC FC
FC: Full consolidation EM: Equity Method PC: Proportional consolidation NC: Non-consolidated company
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Company Country
% of interest
% of control
Method of consolidation
2012 2013 2012 2013 2012 2013
Fret GV France 50.00 50.00 PC
Mobigreen France 100.00 100.00 100.00 100.00 FC FC
Mediapost Espagne Spain 51.00 51.00 51.00 51.00 FC FC
Mediapost Hit Mail Romania 60.02 60.02 60.02 60.02 FC FC
Creat Direct Romania 60.02 60.02 100.00 100.00 FC FC
Inbox Marketing Romania 59.06 59.06 98.40 98.40 FC FC
Interactions Marketing Romania 48.01 48.01 80.00 80.00 FC FC
Hit Mobile Marketing Romania 54.01 54.01 90.00 90.00 FC FC
Bretagne Routage France 100.00 100.00 100.00 100.00 FC FC
La Vosgienne industrielle de Mailing France 100.00 100.00 100.00 100.00 FC FC
Banking activities segment
La Banque Postale France 100.00 100.00 100.00 100.00 FC FC
La Banque Postale Gestion privée France 51.00 100.00 51.00 100.00 FC FC
Banque Privée Européenne France 99.99 99.99 FC
La Banque Postale Collectivités Locales France 65.00 65.00 FC
LBP Home Loan SFH France 100.00 100.00 FC
SCI Tertiaire Saint Romain France 100.00 100.00 100.00 100.00 FC FC
SCI CRSF DOM France 99.94 100.00 99.94 100.00 FC FC
SCI CRSF Metropole France 100.00 100.00 100.00 100.00 FC FC
SF2 France 100.00 100.00 100.00 100.00 FC FC
La Banque Postale Prévoyance France 50.00 50.00 50.00 50.00 PC PC
La Banque Postale Asset Management France 100.00 100.00 100.00 100.00 FC FC
La Banque Postale Structured Asset
Management France 100.00 100.00 100.00 100.00 FC FC
La Banque Postale Conseil en Assurances France 100.00 100.00 100.00 100.00 FC FC
Sopassure France 50.02 50.02 50.02 50.02 PC PC
CNP Assurances France 19.98 20.15 35.96 36.25 EM EM
La Banque Postale Financement France 65.00 65.00 65.00 65.00 FC FC
La Banque Postale Crédit aux entreprises France 100.00 100.00 100.00 100.00 FC FC
FCT Elise 2012 France 95.00 95.00 95.00 95.00 FC FC
La Banque Postale Assurances IARD France 65.00 65.00 65.00 65.00 FC FC
Tocqueville Finance Holding France 90.97 92.52 90.97 92.52 FC FC
Tocqueville Finance France 90.87 92.42 99.89 99.89 FC FC
OFC Finance France 100.00 100.00 100.00 100.00 FC FC
Easybourse France 100.00 100.00 100.00 100.00 FC FC
La Banque Postale Assurance Santé France 65.00 65.00 65.00 65.00 FC FC
Real estate segment
Poste Immo France 100.00 100.00 100.00 100.00 FC FC
Loca Poste S.A.S. France 100.00 100.00 100.00 100.00 FC FC
FC: Full consolidation EM: Equity Method PC: Proportional consolidation NC: Non-consolidated company
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Company Country
% of interest
% of control
Method of consolidation
2012 2013 2012 2013 2012 2013
ImmoStoc SAS France 100.00 100.00 100.00 100.00 FC FC
SCI Tertiaire France 100.00 100.00 100.00 100.00 FC FC
SCI Logement France 100.00 100.00 100.00 100.00 FC FC
SCI Centres de Loisirs France 100.00 100.00 100.00 100.00 FC FC
SCI Activités Annexes France 100.00 100.00 100.00 100.00 FC FC
SCI DOM France 100.00 100.00 100.00 100.00 FC FC
SCI 44 Vaugirard France 100.00 100.00 100.00 100.00 FC FC
SCI Activités Courrier Local France 100.00 100.00 100.00 100.00 FC FC
SCI BP France 100.00 100.00 100.00 100.00 FC FC
SCI BP Mixte France 100.00 100.00 100.00 100.00 FC FC
SCI Activités Courrier Industriel France 100.00 100.00 100.00 100.00 FC FC
SCI Activités Courrier de Proximité France 100.00 100.00 100.00 100.00 FC FC
SCI Activités Colis France 100.00 100.00 100.00 100.00 FC FC
SCI Tertiaire Mixte France 100.00 100.00 100.00 100.00 FC FC
CIPOSTE SAS France 100.00 100.00 100.00 100.00 FC FC
SAS PI Développement France 100.00 100.00 100.00 100.00 FC FC
SAS PI Energies renouvelables France 100.00 100.00 100.00 100.00 FC FC
SCCV 56, rue CLER France 49.00 49.00 49.00 49.00 PC PC
TPF2 Sppicav France 20.02 20.02 20.02 20.02 EM EM
AKATEA TPF2 France 20.02 20.02 20.02 20.02 EM EM
Fréjorgues Energy SAS France 49.00 49.00 49.00 49.00 EM EM
Arkadéa SAS France 50.00 50.00 50.00 50.00 PC PC
SCI Bataille France 35.00 35.00 35.00 35.00 PC PC
SCI Villeneuve LB France 49.00 49.00 49.00 49.00 EM EM
SCI ARKADEA Fort-de-France France 49.00 49.00 EM
SCI ARKADEA Toulouse-Lardenne France 30.00 30.00 PC
SCI ARKADEA Lyon Croix-Rousse France 30.00 30.00 PC
PI Energy 2 France 20.00 20.00 EM
AKATEA 2—TPF2 SAS France 20.02 20.02 20.02 20.02 EM EM
SCI ARKADEA La Rochelle France 30.00 30.00 PC
SAS ARKASOLIA France 50.00 50.00 50.00 50.00 PC PC
PI Energy France 20.00 20.00 20.00 20.00 EM EM
La Poste Retail Brand segment
LP Télécom France 51.00 51.00 51.00 51.00 PC PC
Unallocated
Sofrepost France 99.99 99.99 99.99 99.99 FC FC
Véhiposte SAS France 100.00 100.00 100.00 100.00 FC FC
GIE Véhiposte France 100.00 100.00 100.00 100.00 FC FC
FC: Full consolidation EM: Equity Method PC: Proportional consolidation NC: Non-consolidated company
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20.1.2 Statutory Auditors’ report on the consolidated financial statements (Year ended 31 December 2013)
To the Shareholders,
In compliance with the assignment entrusted to us by the Ministerial Decree of 29 June 2009 and pursuant to Article 14 of
the Act of 12 January 2010 on La Poste state-owned company and the postal business, we hereby report to you, for the year
ended 31 December 2013, on:
the audit of the accompanying consolidated financial statements of La Poste;
the justification of our assessments;
the specific verification required by law.
These consolidated financial statements have been approved by the Board of Directors. Our role is to express an opinion on
these consolidated financial statements based on our audit.
1 Opinion on the consolidated financial statements
We conducted our audit in accordance with professional standards applicable in France; those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of
material misstatement. An audit involves performing procedures, using sampling techniques or other methods of selection,
to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made, as well
as the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
In our opinion, the consolidated financial statements give a true and fair view of the assets and liabilities and of the financial
position of the Group as at 31 December 2013 and of the results of its operations for the year then ended in accordance with
International Financial Reporting Standards as adopted by the European Union.
Without qualifying our opinion, we draw your attention to the matter set out in Notes 2.1.A and 29 to the consolidated financial
statements which set out the change in accounting policies from the application of the revised standard IAS 19, related to
employee benefits.
2 Justification of our assessments
In accordance with the requirements of article L.823-9 of the French Commercial Code (Code de commerce), we bring to
your attention the following matters:
Paragraphs L and M of Note 3 to the consolidated financial statements describe the measurement and impairment terms
of banking assets and liabilities, bonds and related financial derivatives, and guarantee commitments. As part of our
assessment of the accounting principles applied by your company, we verified the appropriateness of the aforementioned
accounting policies and of the disclosures in the notes to the financial statements.
Paragraph L1 of Note 3 to the consolidated financial statements sets out the principles and procedures applied in the
impairment of banking activities loans and receivables. We have reviewed impairment methods, credit risk management
procedures, the assessment of default risks and their coverage with individual and collective impairments.
Paragraph J of Note 3 and Note 15 of the notes to the consolidated financial statements set out the principles and
procedures applied for the purposes of testing the impairment of goodwill, other intangible assets and property, plant
and equipment. These are tested for impairment whenever there are indications of impairment losses, and at least once
a year for goodwill, in accordance with the procedures set out in Paragraph J of Note 3. We reviewed the procedures for
carrying out these impairment tests as well as the cash flow forecasts and assumptions used. We also verified that the
notes to the consolidated financial statements provide appropriate information.
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Paragraph R of Note 3 and Note 29 in the notes to the consolidated financial statements set out the principles and
procedures applied to measure and record pension plans, other post-employment benefits, early retirement plans and
other long-term benefits awarded to employees. We have reviewed the methods used for calculating these obligations,
assessed the data used and the assumptions on which these assessments are based, and verified the appropriateness
of disclosures in the notes to the consolidated financial statements.
These assessments were made as part of our audit of the consolidated financial statements taken as a whole, and therefore
contributed to the opinion we formed which is expressed in the first part of this report.
3 Specific verification
As required by law we have also verified, in accordance with professional standards applicable in France, the information
presented in the group's management report.
We have no matters to report as to its fair presentation and its consistency with the consolidated financial statements.
Paris La Défense and Courbevoie, on the 21 February 2014
The Statutory Auditors
French original signed by
KPMG AuditA department of KPMG S.A.
Mazars
François Caubrière Isabelle Goalec Guy Isimat-Mirin Dominique Muller
Partner Partner Partner Partner
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20.2 Separate financial statements
20.2.1 Annual financial statements as at 31 December 2013 (Board of Directors’ meeting of 20 February 2014)
Values in the tables are generally stated in euro millions. Rounding may on occasion result in slight differences in totals or
changes.
Income statement
(€ million) Reference notes 31/12/2013 31/12/2012
Mail revenue 9,351 9,736
Parcels revenue 1,578 1,531
La Poste Retail Brand revenue 1,138 1,080
Real estate revenue 22 26
Revenue Note 1 12,089 12,373
Other operating income 2,536 2,607
Operating revenue 14,625 14,980
Purchases (492) (495)
Other external expenses Note 2 (3,805) (3,757)
Miscellaneous taxes and dues Note 3 (828) (837)
Personnel expenses Note 4 (9,600) (9,878)
Depreciation, impairment and provisions Note 5 (449) (382)
Operating expenses (15,174) (15,349)
Operating profit/(loss) (549) (369)
Net financial income (loss) Note 6 340 286
Underlying net profit (209) (83)
Non-recurring items Note 7 (21) (26)
Profit before tax (230) (109)
Income tax Note 8 314 175
Net profit 84 66
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Balance sheet
ASSETS
31/12/2013 31/12/2012
(€ million) Notes Gross
Depreciation, impairment
and provisions Net Net
Intangible assets Note 9 828 (584) 244 277
Land and buildings 328 (171) 157 160
Other P, P&E 3,604 (2,633) 971 1,059
Property, plant and equipment Note 10 3,932 (2,804) 1,128 1,219
Financial assets Note 11 10,450 (26) 10,424 9,566
Fixed assets 15,210 (3,414) 11,796 11,062
Inventory and work in progress Note 12 118 (4) 114 127
Trade receivables 1,466 (30) 1,436 1,394
Other accounts receivable 613 - 613 290
Operating receivables Note 13 2,079 (30) 2,049 1,684
Other debtors Note 15 37 (28) 9 13
Accrual accounts Note 16 181 - 181 185
Marketable securities and cash Note 17 3,558 - 3,558 4,364
Current assets 5,973 (62) 5,911 6,373
Grand total 21,183 (3,476) 17,707 17,435
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Balance sheet
LIABILITIES AND SHAREHOLDERS' EQUITY
(€ million) Reference notes 31/12/2013 31/12/2012
Share capital 3,800 3,400
Share premium account 900 700
Reserves 481 478
Retained earnings (losses) 193 302
Net profit for the year 84 66
Shareholders' equity Note 19 5,458 4,946
Regulated provisions Note 20 111 106
Provisions for contingencies and charges Note 20 1,703 1,673
Bonds 5,951 6,431
Miscellaneous loans and borrowings 626 602
Bank accounts and bills of exchange payable 37 30
Financial debt Note 21 6,614 7,063
Trade and other accounts payable 1,132 1,143
Tax and employee-related payables 1,240 1,289
Other operating payables 445 386
Operating payables Note 13 2,817 2,818
Miscellaneous creditors Note 15 727 588
Accrual accounts Note 16 277 241
Payables 10,435 10,710
Grand total 17,707 17,435
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Statement of cash flows
(€ million) Notes 31/12/2013 31/12/2012
Net profit / (loss) 84 66
Elimination of non-cash and non-operating items
Gains and losses on asset sales/disposals 13 8
Net changes in provisions Note 26 35 21
Change in CICE provision Note 26 (36)
Depreciation, amortisation and impairment Note 26 381 337
Other non-cash income and expenses 3 2
Cash flow before cost of debt and tax 480 434
Cost of debt 41 41
Tax (314) (175)
Cash flow after cost of debt and tax 207 300
Change in working capital Note 27 94 310
CICE tax credit received in the year (234)
Change in cash balances at post offices 108 (88)
Taxes paid 242 179
Cash flows from investing activities 417 701
Purchase of intangible and tangible assets Note 28 (283) (315)
Purchase of financial assets (1,066) (425)
Inflows from sale of intangible assets and P, P&E Note 29 3 28
Inflows from sale of financial assets Note 29 188 457
Deconsolidation of subsidiaries, less any disposals of cash - 1
Cash flows used in investing activities (1,158) (254)
Capital increase 600 1,050
Dividends paid (171) (145)
Interests paid (44) (43)
Issuance of debt Note 30 400 750
Repayments of borrowings Note 31 (728) (670)
Other cash flows from financing activities (103) 73
Cash flows from financing activities (46) 1,015
Change in cash and cash equivalents (787) 1,462
Opening cash and cash equivalents (a) 3,262 1,800
Closing cash and cash equivalents (a) Note 32 2,475 3,262
(a) Excluding cash receipts of post offices for which the change appears under "Cash flows from operating activities".
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La Poste general information
Legal status of La Poste
La Poste is a public limited company governed by legal
and regulatory provisions applicable to public limited
companies, including the French Commercial Code in the
absence of any special provisions such as French Act No.83-
675 dated 26 July 1983 relating to the democratization of the
public sector and Act No.90-568 dated 2 July 1990 relating
to organization of the mail and telecommunications public
service.
The Company operates under a public service mission
and general interest role and conducts other activities in
accordance with aforementioned French Act dated 2 July
1990 and legislation governing each of its Business Lines.
The public service mission and general interest role
includes:
a Universal Postal Service;
contribution, through its network of public outlets, to
regional planning and development;
press transportation and delivery;
banking accessibility under the terms set out in Articles
L. 221-2 and L. 518-25-1 of the French Monetary and
Financial Code.
Following normal rules, the Company collects, sorts,
transports and delivers all kinds of mail, parcels and goods.
Highlights
1. La Poste capital increase €600 million
In accordance with the 6 April 2011 Extraordinary
General Meeting resolutions relating to the La Poste
capital increase, in April 2013 the French government
and the Caisse des Dépôts exercised the $350 million of
share warrants they held, which resulted in the issue of
100 million new shares at a price per share of €6, including
€2 share premium.
Following this transaction, La Poste's share capital amounts
to €3.8 billion while the "share premium" account stands
at €900 million.
2. Increase in La Banque Postale's
shareholders' equity
This transaction was carried out as follows:
Poste Immo sold 63,996,107 shares in SCI Tertiary SCI
Saint-Romain, which holds the La Banque Postale head
office, to La Poste for €117 million and its current account
receivable of €111 million, in return for a €228 million
capital reduction by cancellation of 228,000 shares.
La Poste sold the entire SCI Tertiaire Saint-Romain share
capital (amounting to 64,001,500 shares) to La Banque
Postale for €117 million, and its current account receivable
of €111 million. As consideration for this transaction,
La Banque Postale issued La Poste with 1,982,608 new
shares, with nominal value of €115 per share and
€227,999,920 in total, as well as paying La Poste a balancing
payment of €80.
La Banque Postale issued €800 million of low ranking
convertible bonds with unlimited duration, which were fully
taken up by La Poste.
3. Changes to Le Groupe La Poste bond
portfolio
The 2006 €726 million bond was repaid on 8 November
2013. On 14 November 2013 the €750 million bond portion
was increased by €250 million at a 2.75% interest rate and
maturing on 26 November 2024.
4. CICE (French tax credit for competitiveness
and employment) tax credit
Article 66 of Act No.2012-1510 dated 29 December 2012
introduced a tax credit for competitiveness and employment
("CICE"), as from 1 January 2013. This new law represents
the first step taken in conjunction with the French
National Growth Pact dated 6 November 2012 to boost
competitiveness and jobs.
This tax credit amounted to 4% in 2013 and 6% in 2014
applied to remunerations up to 2.5 times the French
minimum wage paid to employees during the calendar year.
CICE is accounted for as a deduction from personnel
expenses. CICE had no impact on 2013 Group cash flow
because it cannot be set off against corporate income tax
payables (in respect of 2013) until 2014.
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5. Public service contract
The undertakings of La Poste and the French government
were redefined by the "2013-2017 business contract"
approved by the Group's Board of Directors on 22 April 2013
and signed by participating parties on 1 July 2013.
Post balance sheet events
There has been no event likely to have a material impact on
the La Poste financial statements since the balance sheet
date.
Accounting policies
I. Underlying accounting standards
The La Poste annual financial statements are drawn up
under the principles of prudence, consistency, the accruals
concept, materiality and on a going concern basis, pursuant
to the French 1999 General Chart of Accounts.
II. Accounting principles
A. Use of estimates
When preparing the financial statements, the Group is
required to make the best possible estimates and to
make assumptions that affect the values of assets and
liabilities in the balance sheet, the contingent assets and
liabilities disclosed in the notes to the consolidated financial
statements and the income and expenses in the income
statement. Actual amounts may subsequently differ from
these estimates and assumptions.
B. Revenue
Revenue arising from the sale of goods or services is
recognized when the risks and rewards of ownership are
transferred to the customer. Revenue is recognized in
proportion to deliveries of the related goods or services
("percentage-of-completion" accounting method), with the
exception of postage stamps and prepaid envelopes, for
which income is recorded when sold.
Consequently, the mail and parcels delivery time needs to
be taken into account when calculating revenues at the
balance sheet date.
C. Distinction between underlying earnings and non-recurring items
Only unusual and one-off income and expenses are re
posted to non-recurring items. La Poste has decided to
classify the following under non-recurring items:
sale/disposal of non-current assets;
impairment provisions in respect of long-term diminution
in value of non-current assets;
income and expense caused by force majeure (e.g. fire,
storms etc.).
D. Income tax
La Poste has opted for a tax consolidation regime in which
it is the parent company.
VAT taxation rules
The provisions of Article 261-4-11 of the French General
Tax Code provide a VAT exemption for services rendered
by the provider of the Universal Postal Service in France
falling within the scope of the Universal Postal Service as
defined by Article L. 1 of the French Postal and Electronic
Communications Code, as specified in Article L. 2 of the
same Code.
As the French provider responsible for the Universal Postal
Service, La Poste exempts all postal products falling within
the scope of the Universal Postal Service that it sells from
VAT. The postal products sold by La Poste and not falling
within the scope of the Universal Postal Service are subject
to VAT in line with ordinary legal provisions (application
of the normal VAT rate subject to the application of the
regional VAT rules on services).
CET (contribution économique territoriale—regional
economic contribution)
In 2013, Decree 2013-1288 dated 27 December 2013
established the direct tax bases allowance rates enjoyed
by La Poste for its regional development mission. The
allowance was set at 85% on the basis of the CFE (cotisation
foncière des entreprises—business property tax) payable as
part of the CET and at 80% for tax on corporate value added.
E. Intangible assets
CRC Regulation 2004-06 defines an intangible asset as an
identifiable non-monetary asset without physical substance,
i.e. an asset arising from legal or contractual rights, or from
separable rights.
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Intangible assets primarily consist of software and
leasehold rights.
Software is amortized over a period of between one to five
years. Leasehold rights held by the real estate Department
have been amortized since 2010.
The rules for impairment of intangible assets are set out in
Section G below.
Research and development costs
Development costs are expensed as incurred, except for:
equipment costs, where construction is sufficiently
advanced to demonstrate certain usefulness for
La Poste.
These expenses are capitalized as intangible assets and
amortized over a five-year period as soon as they are
commissioned;
expenditure relating to internal software development
to the extent that:
- it is highly likely that the project will be technically
feasible,
- management has sufficient human and material
resources to produce the software,
- there is a clear intention to produce the software
and use it on a long-term basis for La Poste’s own
requirements or those of its customers.
These expenses are capitalized as intangible assets and
amortized over a three-year period as soon as they are
commissioned.
The amount of research and development costs recognized
as expenses for the year is provided in Note 9.
F. Property, plant and equipment
F.1. Breakdown of cost of non-current assets by
component
A component is a part of a non-current asset that has a
different useful life, or that generates economic benefits at
a rate that differs from that of the overall asset.
La Poste has identified the following components:
Real estate assets: Six components
Structural frame;
Roof;
Joinery and exterior work;
Large-scale equipment;
Small equipment and fixtures and fittings;
Land.
Machinery and equipment
Sorting machines: three components (mechanical
parts, intelligence and peripherals). A fourth component
(feeders and measuring instruments) is identified for
parcel sorting machines;
Sorting-area equipment: two components (mechanical
parts and intelligence);
TGV railcars: three components (frame, servicing, and
interior fittings).
F.2. Depreciation periods
P, P&E is depreciated on a straight-line basis over the
useful life of the assets.
As part of the implementation of the accounting regulations
for assets, the useful lives of non-current assets were
reviewed in 2005, which primarily resulted in a lengthening
of the average depreciation periods. The changes mainly
involved:
real estate assets, especially the main structural frame
components;
the main mechanical component of sorting machines.
The depreciation periods applied are as follows:
Buildings
The useful life depends on the technical and/or architectural
category to which the building belongs (La Poste has
defined seven categories):
Structural frame: 20 to 80 years
Roof: 20 to 60 years
Joinery and external work: 20 to 40 years
Large-scale equipment: 15 to 20 years
Small equipment and fixtures and fittings: 5 to 10 years
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Machinery and equipment
Sorting machines: 5 to 15 years
Sorting-area equipment: 5 to 8 years
Office and computer equipment: 3 to 5 years
Office furniture: 10 years
TGV railcars: 15 to 30 years
Given that Tax Instruction BOI 4A-13-05 retained the
option for an entity to depreciate non-current asset
components over their useful life, La Poste has recognized
an accelerated depreciation charge on the following assets:
the main structural frame component for buildings, in
order to set the useful life of this component at 40 years
for depreciation purposes;
the main mechanical component for sorting machines, in
order to set the useful life of this component at six years
and eight months for depreciation purposes.
F.3. Acquisition cost of a non-current asset
Only expenses giving rise to a controlled resource as
a result of past events from which La Poste expects to
generate future economic benefits are capitalized.
In accordance with the option provided under CRC
Regulation 2004-06, acquisition costs that are directly
attributable to the acquisition of a non-current asset or to
bringing it into working order are not included in the cost
of the tangible asset.
Borrowing costs are not included in the acquisition cost of
non-current assets.
Investment subsidies received in respect of the acquisition
of a non-current asset are recorded as balance sheet
liabilities and recognized in income over the useful lives of
the underlying assets for which they were awarded.
G. Impairment of P, P&E and intangible assets
P, P&E and intangible assets are tested for impairment
whenever there is evidence of impairment.
Impairment tests consist of comparing the net book value
of each asset to its current value, which is the higher of the
realizable value and the value-in-use. Where the current
value of an asset or group of assets falls below its net book
value and the asset continues to be used, then its net book
value is reduced to this current value via an impairment
charge.
Realizable value represents the amount that could be
obtained by selling an asset at the balance-sheet date in
an arms’ length transaction, net of sale costs.
The value-in-use of an asset, or group of assets, is the
value of future economic benefits expected from their use
and/or sale.
Impairment charges are recognized for assets held for sale
where the market value falls below the net book value and
a decision has been taken to sell the asset.
H. Equity investments
Shares in La Poste’s subsidiaries are recognized at cost less
any potential provisions for impairment.
Such impairment reflects the difference between the
acquisition cost of the equity investments and their
book value at the balance-sheet date, which is usually
determined by using discounted future cash flows or the
potentially consolidated share in the Shareholders’ equity
of the relevant unit. Where a disposal decision has been
taken, the book value is determined with reference to the
realizable value, as defined in Section G above.
Dividends received are recorded as financial income in the
year in which the decision to distribute them is made.
I. Other non-current financial assets
These are primarily loans extended by La Poste to its
subsidiaries.
Other non-current financial assets also include loans
made in connection with social housing schemes, which
are recognized at their nominal value. Provisions are
recorded so as to take the maturities, repayment terms and
estimated bad debt risk of these loans into account.
J. Inventories and work-in-progress
La Poste applies the Weighted Average Unit Cost method
to measure the initial cost of inventory, except for finished
products, which are valued at production cost.
At the balance-sheet date and in accordance with CRC
Regulation 2004-06 regarding assets, which has been
applicable since 1 January 2005, inventories are valued at
the lower of their initial cost and current value. The current
value is the higher of the realizable value (market value)
or the value-in-use, which usually corresponds to the
discounted expected net cash flows.
Where the current value is the lower of the two, an
impairment charge must be recognized in order to bring
the initial cost in line with the current value.
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K. Operating receivables
K.1. Trade receivables
When they are initially recognized, trade receivables on
commercial activities are recorded at face value.
Impairment rules for trade receivables
Receivables due from customers who are subject to a
court-ordered settlement or compulsory liquidation are
written off in full, regardless of how long they have been
outstanding.
For other receivables, impairment is based on how long
they have been outstanding and the risk of non-recovery:
- outstanding for over one year: the value of the
receivable is fully written down;
- outstanding for between three months and one year:
The provisioning rate is calculated on the basis of
an average “loss rate”. The loss rate represents the
difference between receivables as at 1 January in a
given year and the amounts received during that year.
K.2. Other accounts receivable
When they are initially recognized, other accounts receivable
are recorded at face value. They are impaired depending on
the length of time they have been outstanding or the bad
debt risk.
L. Miscellaneous debtors and creditors and accruals accounts
Miscellaneous debtors and creditors and accruals accounts
primarily concern accounts in the process of being settled
at the balance-sheet date, including Le Groupe La Poste’s
intercompany transactions.
M. Marketable securities and cash
Marketable securities are valued at the lower of acquisition
cost and market value.
N. Foreign currency transactions
Payables, receivables, and cash and cash equivalents
denominated in foreign currencies are translated into euros
at the closing exchange rate. If the closing exchange rate
changes the historical value of payables and receivables,
the resulting differences are then recorded in the balance
sheet under unrealized foreign exchange gains or losses.
At La Poste, unrealized foreign exchange gains or losses are
mainly related to financing transactions (bonds and related
hedging transactions).
O. Provisions for contingencies and losses
Provisions are recorded where (i) at the balance sheet date
La Poste has a legal or implicit liability towards a third party
as a result of a past event, (ii) it is likely that an outflow
of resources representing future economic benefits will be
required to settle the liability, and (iii) a reliable estimate can
be made of the liability.
The provisions are assessed on the basis of La Poste’s
expectation of the expenditure required to settle the liability,
based on management data from the information system
and on assumptions selected by La Poste, supplemented,
where necessary, by experience of similar transactions
and, in some cases, by reports from independent experts
or supplier quotes. These various assumptions are reviewed
at each balance-sheet date.
P. Pension plan and end-of-career arrangements
P.1. Pension plan
State employees
The 2006 Amending Finance Act reformed pension funding
for La Poste’s state employees, backdated to 1 January
2006, as described in Note 24 to the financial statements.
Under the plan introduced in 2006, La Poste pays an
employer contribution, which discharges it of its liabilities.
As a result, no provision for the retirement of state
employees is recorded in the financial statements.
Contract staff
The pension plan for La Poste’s contract staff is a defined
contribution scheme, which is funded by contributions
to organizations that release the employer from any
subsequent liability, while the organization undertakes
to pay employees the amounts accruing to them.
Consequently, once the contributions are paid, no liabilities
or obligations are recognized in La Poste’s balance sheet.
Contributions paid to independent bodies are expensed in
the period concerned.
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P.2. Retirement benefits (contract staff)
These liabilities are covered by a provision in the balance
sheet.
The main assumptions used and the assessment of the
liability are set out in Note 24 to the financial statements.
P.3. End-of-career arrangements
La Poste records a provision for the costs of the end-of-
career arrangements made for its employees. The persons
included in the assessment of the provision are all those
who were enrolled in the scheme at the balance-sheet date.
The existing end-of-career arrangements are described in
Note 24 to the financial statements.
Q. Debt evidenced by a certificate (i.e. bonds and La Poste savings bonds)
Debt evidenced by a certificate is recognized at face value
under Debt in balance sheet liabilities. It is broken down
by type in the notes to the financial statements: bonds and
La Poste savings bonds.
Interest accrued not due on these securities is included in
a related payables account and taken to income.
Bond issue and redemption premiums are amortized on a
straight-line basis over the life (time) of the bonds, while
issuance expenses are deferred on a straight-line basis over
the same period.
Such issue and redemption premiums are recognized as
balance sheet assets under “Miscellaneous debtors” (see
Note 15).
R. Futures
Futures transactions are disclosed under off-balance sheet
commitments in Note 23.
Transactions entered into by La Poste (mainly interest-rate
swaps) with a view to debt issues fall under the hedging
transactions included in “uncommitted but highly probable,
clearly defined future transactions.” Gains and losses
are therefore deferred over the commitment period and
subsequently recognized over the life (time) of the debt
issued.
Balancing cash adjustments recognized when hedging
instruments are terminated are deferred over the remaining
term of the underlying liability.
Balancing cash adjustments recognized when instruments
classified as isolated open positions for accounting
purposes are terminated are recognized under net financial
income (loss).
Instruments used in transactions classified as an isolated
open position for accounting purposes are measured at
market value as at the balance-sheet date. Unrealized
losses are recognized via a provision for contingencies and
losses in net financial income (loss).
S. Share capital
Following the introduction of Decree 2010-191 dated
27 February 2010, La Poste became a public limited
company on 1 March 2010, with a share capital set at
€1 billion, divided into 500 million fully paid-up shares
with a par value of €2 each. This share capital is, by law,
wholly-owned by the French government or Government-
owned entities, except for any portion reserved for La Poste
employees.
Prior to that date, La Poste was an independent State-
owned company, without share capital as legally defined,
but with equity of €2,467 million, split between:
an initial capital contribution of €2,258 million (including
€1,039 million from the transfer of CNE’s business
activities in 2005);
an additional capital contribution of €209 million.
By virtue of La Poste’s change in status in 2010,
€1,467 million was allocated to various reserves, in addition
to the creation of €1 billion share capital. Lastly, following
the first General Meeting of La Poste, which was held on
12 May 2010, €1,513,000 was allocated to the legal reserve.
The planned capital increase adopted by the Board of
Directors on 10 February 2011 was approved at the General
Meeting of 6 April 2011 and resulted in:
a €1 billion capital increase via capitalization of reserves;
a first payment of €1.05 billion for the capital issued in
April 2011, including €467 million from the Government
and €583 million from Caisse des Dépôts;
the second payment of €1.05 billion was made in April
2012, including €467 million from the Government and
€583 million from Caisse des Dépôts.
La Poste received the last payment from the Government
(€267 million) and the Caisse des Dépôts (€333 million)
totalling €600 million, thereby increasing share capital to
€3,800 million divided into 950,000,000 shares, while the
"issue premium" account stands at €900 million.
389Registration document 2013 / LE GROUPE LA POSTE
Financial information regarding the assets and liabilities, financial position and results of the issuer
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T. Off-balance sheet commitments
Commitment accounts are defined in the French General
Chart of Accounts separately from balance sheet and off-
balance sheet accounts, as rights and obligations that may
change the value or substance of a company’s assets, where
the effects of such rights and obligations are contingent on
the fulfilment of conditions or the completion of subsequent
transactions.
Commitments may only be listed under off-balance sheet
commitments if they pertain to transactions occurring after
the balance-sheet date (commitments made in the normal
course of business), or if they relate to contingent assets or
liabilities (guarantee commitments).
Contingent liabilities result:
- either from the existence of a liability that is not likely
or certain to cause an outflow of resources;
- or from a potential liability, which will only crystallize
if one or more uncertain future events not entirely
under the Company’s control occur.
A contingent asset is a potential asset resulting from
past events, the existence of which will only be confirmed
by the occurrence (or non-occurrence) of one or more
uncertain future events that are not entirely under the
Company’s control.
U. Cash flow statement
La Poste prepares a cash flow statement, which shows the
inflows and outflows of cash and cash equivalents classified
under operating, investing and financing activities.
Operating activities are the main revenue-generating
activities, and any activities other than those defined as
investing or financing activities.
Cash flows from operating activities are determined based
on the indirect method whereby the net profit/(loss) for
the year is adjusted for all non-cash transactions (i.e. net
charges to depreciation, amortization and provisions other
than those relating to current assets plus business-related
changes in working capital), deferrals or adjustments
relating to past or future operating cash inflows or outflows
and all income and expenses associated with cash flows
from investing or financing activities.
Investing activities correspond to the purchase or sale of
non-current assets and any other investments not included
in cash and cash equivalents.
La Poste’s cash flows from investing activities primarily
consist of the purchase or sale of the following items:
P, P&E and intangible assets, adjusted for non-
cash transactions (non-current asset payables and
receivables);
share of equity investments in other companies;
other financial assets (guarantees and deposits, and
receivables on equity investments, etc.).
Financing activities relate to transactions that affect the
value and breakdown of the Shareholders’ equity and debt.
Cash flows from financing activities include inflows from
new borrowings and outflows from redemptions of La Poste
savings bond and other debt.
The concept of cash and cash equivalents covers very liquid
short-term investments that can be readily converted into
known amounts of cash and are subject to a negligible risk
of a loss in value.
La Poste’s cash and cash equivalents include cash in
hand, cash at bank and marketable securities that do not
carry any material risk of loss in value and can be readily
converted into cash (particularly money-market UCITS),
and the portion of bank credit balances and related interest
accrued relating to overdrafts.
V. Consolidated financial statements
Consolidated financial statements are prepared for
Le Groupe La Poste, for which La Poste is the parent
company.
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Notes to the annual financial statements
Notes to the income statement 391Note 1 Revenue and other operating income 391Note 2 Other external expenses 394Note 3 Taxes and levies 395Note 4 Personnel expenses 395Note 5 Depreciation, amortization, provisions and impairment 396Note 6 Net financial income (loss) 397Note 7 Non-recurring items 397Note 8 Income tax 398
Notes to the balance sheet 399Note 9 Intangible assets 399Note 10 Property, plant and equipment 400Note 11 Non-current financial assets 401Note 12 Inventories and work-in-progress 403Note 13 Operating receivables and payables 403Note 14 Accrued income and expenses 404Note 15 Miscellaneous receivables and payables 405Note 16 Personnel expenses 406Note 17 Marketable securities and cash 407Note 18 Impairment of assets 408Note 19 Equity 409Note 20 Provisions for contingencies and charges 410Note 21 Financial debt 412Note 22 Information regarding transactions with related parties 414
Off-balance-sheet commitments 415Note 23 Financial derivatives 415Note 24 Employee benefit commitments 415Note 25 Other off-balance sheet commitments 419
Notes to the statement of cash flows 421Note 26 Charges and reversals in impairment, depreciation and provisions for contingencies and losses 421Note 27 Change in working capital 421Note 28 Outflows from purchase of non-current assets 421Note 29 Proceeds from disposals of non-current assets 422Note 30 Issuance of debt 422Note 31 Repayments of borrowings 422Note 32 Closing cash and cash equivalents 422Note 33 List of subsidiaries and equity investments 423
391Registration document 2013 / LE GROUPE LA POSTE
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Notes to the income statement
NOTE 1 Revenue and other operating income
1.1 Mail revenue
1.2 Parcels revenue
1.3 La Poste Retail Brand revenue
1.4 La Poste real estate revenue
1.5 Other operating income
La Poste generates revenues from its Mail (domestic and international) and Parcels business activities, as well as from the
activities of the La Poste Retail Brand and real estate segments. These revenues broke down as follows:
(€ million) 31/12/2013 31/12/2012
Mail revenue 9,351 9,736
Parcels revenue 1,578 1,531
La Poste Retail Brand revenue 1,138 1,080
Real estate revenue 22 26
Total 12,089 12,373
As at 31 December 2013, revenues broken down by geographical regions were as follows:
France and domestic sales: 97.0%;
European Union: 2.0%;
Other: 1.0%.
The breakdown by geographical region was unchanged compared with 2012.
1.1 Mail revenue
The breakdown of Mail revenue by activity was as follows:
(€ million) 31/12/2013 31/12/2012
Correspondence 6,322 6,557
Advertising (direct marketing and A(a)) 1,431 1,538
Press 432 439
International 534 561
Other Mail services 632 641
Total 9,351 9,736(a) Advertising (direct marketing and AI).
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"Correspondence" revenue include:
€4,711 million in business correspondence (companies
and other legal entities) compared with €4,856 million
in 2012;
€1,611 million in single-item mail (individuals)
(compared with €1,701 million in 2012.
International Mail revenue broke down as follows:
(€ million) 31/12/2013 31/12/2012
Mail franked at post office counters 120 129
Terminal dues 162 179
Other International Mail services 252 253
Total 534 561
International revenue correspond to international business
correspondence and terminal fees.
Terminal fees are the remunerations received by La Poste for
delivering mail from abroad in France. They are determined at
the end of the financial year on the basis of estimates for the
weight and number of items distributed known at that date.
Other Mail income primarily includes revenue from
collecting and delivering letters to homes.
1.2 Parcels revenue
(€ million) 31/12/2013 31/12/2012
B to C (Business to Customers) 1,092 1,055
C to C (Customers to Customers) 449 442
Other 37 34
Total 1,578 1,531
1.3 La Poste Retail Brand revenue
(€ million) 31/12/2013 31/12/2012
La Poste Retail Brand revenue 1,138 1,080
Total 1,138 1,080
Pursuant to current service agreements, La Poste invoices
La Banque Postale for services relating to the financial
activities provided by the post offices, which primarily
include:
counter staff’s activities relating to “Financial Services”
transactions;
installation and operational management of ATMs.
These two services amounted to €1,074 million in 2013,
compared with €1,020 million in 2012.
The La Poste Retail Brand revenue also include
commissions received on third-party sales (excluding
mail and parcels) carried out at post office counters (e.g.
telephone card sales) and remunerations received for use of
its commercial network (Chronopost and LP Mobile).
393Registration document 2013 / LE GROUPE LA POSTE
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1.4 La Poste real estate revenue
(€ million) 31/12/2013 31/12/2012
Real estate revenue 22 26
Total 22 26
Real estate revenue primarily consist of the services provided by La Poste to its Poste Immo subsidiary.
1.5 Other operating income
(€ million) 31/12/2013 31/12/2012
Press revenue 248 262
Banking services 2,042 2,082
Capitalised production 61 63
Services performed with subsidiaries 71 69
Other operating income 114 131
Total 2,536 2,607
A tripartite agreement signed between the Government,
La Poste and newspaper publishers on 23 July 2008 sets out
the conditions for the postal transportation of newspapers
between 2009 and 2015, and provides for a financial
contribution from the Government, in order to help fund
this public service mission. The contribution was fixed for
the period between 2009 and 2011 at €242 million, and falls
gradually as from 2012.
The amount of the contribution was set at €217 million
in 2013, in addition to €31 million received from the
Government under the EGP(1) measures.
Banking activities services include the reimbursement of expenses and income invoiced to La Banque Postale in respect
of the Banking activities carried out by La Poste. They broke down as follows:
(€ million) 31/12/2013 31/12/2012
"Financial services" personnel expenses 1,004 1,007
La Poste Retail Brand banking advisory costs 1,038 1,075
Total 2,042 2,082
(1) EGP measures (Etats généraux de la presse): governmental help received as part of the scheme to freeze press prices.
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Services performed for subsidiaries were as follows:
(€ million) 31/12/2013 31/12/2012
Services charged to subsidiaries 26 25
Personnel cost recharges 2 2
Management fees charged to leading subsidiaries 43 42
of which La Banque Postale 26 25
Misc. income 1 -
Total 71 69
NOTE 2 Other external expenses
The “external services” item consists mainly of outsourced
services (€733 million) and of intermediaries’ expenses and
fees (€193 million).
"Rentals" primarily include property lease payments
(€722 million) and vehicle rentals (€128 million).
The “transportation” item includes national and
international mail transportation (€682 million) as well
as the costs of the sub-contracted transportation of funds
(€37 million).
Other external expenses broke down as follows:
(€ million) 31/12/2013 31/12/2012
External services 1,440 1,411
Transport 725 749
International mail delivery services 160 173
Rental expenses 914 866
Maintenance and repair costs 295 288
Telecommunications costs 72 72
Travel and assignments 124 122
Customer transaction costs 75 76
Total 3,805 3,757
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NOTE 3 Taxes and levies
Taxes, levies and similar payments broke down as follows:
(€ million) 31/12/2013 31/12/2012
Payroll taxes 519 522
Travel expenses 77 76
Local taxes 44 51
Voluntary apprenticeship tax payments 50 51
F.N.A.L. charges 30 30
Vocational training tax charge 48 44
Employer construction tax charge 30 31
Other taxes and duties 30 32
Total 828 837
In accordance with Article 13 of the 2013 Social Security
Funding Act, the 2013 payroll tax base was expanded
and aligned to the CSG payroll rules. It now includes
employee remuneration in respect of incentive bonuses,
corporate savings plans and employer contributions for
supplementary pension plans and supplementary casualty
insurance.
The “local taxes” item primarily consists of the Regional
Business Tax (€42 million). La Poste has benefited from
a reduction in this contribution since 2011, pursuant to
Postal Act 2010-123 of 10 February 2010. La Poste's 2013
contribution was set at 80% as published in Decree 2013-
1288 dated 27 December 2013.
Other taxes and levies primarily consisted of the Corporate
Social Solidarity Contribution (€22 million).
NOTE 4 Personnel expenses
Personnel expenses broke down as follows:
(€ million) 31/12/2013 31/12/2012
Salaries, bonuses and allowances 6,792 6,821
State employee pension contributions 1,187 1,172
Social contributions 1,546 1,528
Employee welfare costs 203 199
Other personnel costs 141 158
Employment competitiveness tax credit (269) -
Total 9,600 9,878
Registration document 2013 / LE GROUPE LA POSTE396
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The reduction in personnel expenses (down €8 million,
excluding CICE) largely arose from:
a €29 million decrease, in “Wages and salaries, bonuses
and allowances";
a €15 million increase in the contribution to the state
employees’ pension fund due to an increase in the
voluntary contribution rate from 37.10% in 2012 to
39.05% in 2013;
an €18 million increase in social security contributions,
primarily due to a proportionate increase in the number
of La Poste employees in relation to La Poste's total
headcount;
a €17 million decrease in other personnel expenses,
which was primarily due to a reduction in employee
incentive costs pursuant to the new incentive agreement
for the period between 2012 and 2014, which was signed
on 18 June 2012.
The amended 2012 Finance Act dated 29 December
2012 introduced a tax credit for competitiveness and
employment ("CICE") as from 1 January 2013. The CICE
tax credit amounted to 4% of paid remunerations under
2.5 times the French 2013 minimum wage. This rate will be
increased to 6% from 1 January 2014. The CICE tax credit
is accounted for as a deduction personnel expenses in the
Group accounts.
Consequently:
a €269 million tax credit was recorded as a reduction in
2013 personnel expenses, including personnel expenses
payable and provisions (accrued leave, end-of-career
mechanisms, etc.);
in view of their very long-term nature, no tax credit
is taken into account to calculate the employee post-
retirement benefits.
The breakdown of headcount was as follows (on the basis
of equivalent employees/year):
Number of employees 31/12/2013 31/12/2012
Total 218,941 221,656
NOTE 5 Depreciation, amortization, provisions and impairment
The breakdown of depreciation and amortization is
shown in Notes 9 and 10 to the balance sheet.
The breakdown of 2013 net reversals of provisions for the
impairment of assets is shown in Note 18.
The breakdown of 2013 additions to and reversals of
provisions for contingencies and losses is shown in
Note 20.
Depreciation, amortization, provisions and impairment broke down as follows:
(€ million) 31/12/2013 31/12/2012
Net depreciation/impairment 379 390
Deferred expense charge 1 1
Net asset impairment charges/reversals 5 3
Net charges/reversals on provisions for contingencies and charges 64 (12)
Total 449 382
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NOTE 6 Net financial income (loss)
Net financial income (loss) broke down as follows:
(€ million) 31/12/2013 31/12/2012
Net exchange gains (losses) - 1
Net gains (losses) on loans, borrowings and other fixed asset investments (62) (67)
Income from equity investments 348 286
Other financial income and expenses 54 66
Total 340 286
2013 financial items primarily consisted of:
interest expense on borrowings mainly on bonds issued
by La Poste;
other financial income and expenses mainly comprising
a €35 million provision reversal on financial instruments;
income from equity associates, which broke down as
follows:
(€ million) 31/12/2013 31/12/2012
La Banque Postale 258 186
GeoPost 77 72
Poste Immo 8 13
Sofipost 5 8
Véhiposte SAS - 7
Total 348 286
NOTE 7 Non-recurring items
Non-recurring items broke down as follows:
(€ million) 31/12/2013 31/12/2012
Net gains / (losses) from asset disposals (13) (8)
Net building impairment (1) 5
Net accelerated depreciation (5) (9)
Miscellaneous income and expenses (2) (14)
Total (21) (26)
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NOTE 8 Income tax
(€ million) 31/12/2013 31/12/2012
Tax group expense (19) (126)
Tax group benefit 341 301
Other (8) -
Total 314 175
Taxable income of the La Poste tax group for the year ended
31 December 2013 amounted to €216 million.
Tax consolidation income represents the total tax charges of
profit-making subsidiaries in the tax group, and amounted
to €341 million.
The amount of subsidiaries’ losses used by La Poste
under the tax consolidation group regime amounted to
€47 million, as at 31 December 2013.
Under the La Poste tax group agreement, subsidiaries
returning to profit retain the option of using loss carry-
forwards arising during the tax group period to calculate
the tax expense owed to the parent company. The use of
such tax losses by subsidiaries results in an expense for the
Group in the financial year in which such losses are used,
as long as the subsidiaries remain part of the tax group.
The tax group included 92 subsidiaries as at 31 December
2013 (compared with 88 as at 31 December 2012). The
French corporate income tax rate for 2013 was 38%.
(€ million) 31/12/2013 31/12/2012
Items that reduce the future tax liability
Timing differences 1,322 1,282
Of which:
Provisions for early retirement and retirement benefits 1,110 1,043
Non-deductible provisions 55 69
Swaps and similar 53 78
Other timing differences (including exchange gains) 104 92
Total 1,322 1,282
Items that increase the future tax liability
Poste Immo—Rollover relief on capital contribution 427 472
Other 111 106
Total 538 578
399Registration document 2013 / LE GROUPE LA POSTE
Financial information regarding the assets and liabilities, financial position and results of the issuer
Separate financial statements
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Notes to the balance sheet
NOTE 9 Intangible assets
9.1 Gross
9.2 Depreciation and impairment
Movements in intangible assets and the corresponding amortisation break down as follows:
9.1 Gross
(€ million)Balance at
31/12/2012 Acquisitions Disposals ReclassificationsBalance at
31/12/2013
Research and development costs 88 2 (7) - 83
Licenses, patents and similar rights 39 11 - - 50
Software 825 10 (295) 54 594
Leasehold rights 14 - - - 14
Business goodwill 3 - - - 3
Intangible assets in progress 81 69 (11) (54) 85
Total 1,050 92 (313) - 828
The “reclassifications" column corresponds to non-current assets commissioned during the year.
9.2 Amortisation and impairment
(€ million)Balance at
31/12/2012 Charges Reductions ReclassificationsBalance at
31/12/2013
Research and development costs 64 10 (7) - 67
Licenses, patents and similar rights 15 8 (1) - 22
Software 683 94 (294) - 483
Leasehold rights 11 1 - - 12
Total 773 113 (302) - 584
Research and development costs expensed during 2013 amounted to €15.4 million.
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NOTE 10 Property, plant and equipment
10.1 Gross
10.2 Depreciation and impairment
Movements in property, plant and equipment and the corresponding depreciation break down as follows:
10.1 Gross
(€ million)Balance at
31/12/2012 Acquisitions Disposals ReclassificationsBalance at
31/12/2013
Land 100 - (1) - 99
Buildings 225 8 (2) (2) 229
Land and buildings 325 8 (3) (2) 328
Plant and machinery 1,385 26 (52) 33 1,392
Vehicles 112 5 (3) 2 116
IT equipment 599 38 (55) 3 585
Other P, P&E 1,445 54 (42) 38 1,495
P,P&E in progress 41 48 - (74) 15
Other P, P&E 3,581 171 (151) 2 3,604
Total 3,906 179 (154) - 3,932
The “machinery, equipment and tooling” acquisitions
primarily relate to video-surveillance equipment
(+€12 million) and machinery (+€9 million).
"Other P, P&E" purchases primarily consist of furniture
(+€22 million).
The asset disposals primarily correspond to scrapped
sorting machines (€39 million) and IT equipment
(€55 million), which were substantially fully written down.
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10.2 Depreciation and impairment
Balance at 31/12/2012 Charges
Disposals / Reversals
ReclassificationsBalance at
31/12/2013(€ million) Used not used
Buildings 157 8 (1) - - 163
Plant and machinery 985 103 (49) - (1) 1,038
Vehicles 87 9 (2) - - 94
IT equipment 505 53 (55) - - 503
Other P,P&E 945 93 (42) - 1 997
Other P,P&E 2,679 266 (149) - - 2,795
Land and building impairment 8 6 - (5) - 9
Total 2,687 272 (149) (5) - 2,804
NOTE 11 Non-current financial assets
This item breaks down as follows:
(€ million) 31/12/2012 Increase Reduction 31/12/2013
Equity investments 6,434 351 (346) 6,439
Impairment on equity investments (1) - - (1)
Net equity investments 6,433 351 (346) 6,438
Dividends receivable - - - -
Intercompany loans receivable 3,027 254 (184) 3,097
Other loans receivable 83 1 (4) 80
Impairment on loans (25) - - (25)
Net loans receivable 3,085 255 (188) 3,152
Other non-current financial assets 49 804 (19) 834
Impairment on other financial assets - - - -
Net other non-current financial assets 49 804 (19) 834
Total 9,566 1,410 (553) 10,424
La Poste’s equity investments are predominantly grouped
within the Sofipost, GeoPost, Poste Immo, La Banque
Postale and Véhiposte holding companies, which are wholly-
owned by La Poste.
The main changes recorded for La Poste’s investments
resulted from: a €4.8 million increase in Sofipost’s share
capital for cash on 14 July 2013 via an increase in the
nominal value of the shares.
In addition, the La Banque Postale share capital increased
by a €117 million addition of SCI Tertiaire Saint-Romain
shares and by a €111 million addition of current account
receivables owing from SCI Tertiaire Saint-Romain.
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In return, La Banque Postale issued 1,982,608 new shares,
fully taken up by La Poste, at a nominal value of €115 each.
Prior to this transaction, Poste Immo sold its entire
holding of SCI Tertiaire Saint-Romain shares and the
current account receivable to La Poste for €117 million and
€111 million respectively, in exchange for a €228 million
share capital reduction by cancellation of shares.
Impairment of equity investments relates only to
€1 million for Sofrepost.
Other non-current financial assets consist of collateralisation
guarantee deposits paid as part of bond hedging transactions,
which amounted to €20 million, and advances granted to
tobacco retailers for the sale of postage stamps amounting
to €9 million (unchanged since December 2010).
In addition, La Poste purchased all convertible subordinated
bonds with an unlimited term issued by La Banque Postale
on 13 December 2013 amounting to €800 million.
These bonds may be repaid under certain conditions.
Furthermore La Poste is obliged to convert the bonds into
La Banque Postale shares in the event of non-compliance
with certain regulatory ratios.
Accrued interest included under the subordinated bonds at
31 December 2013 amounted to €3.2 million.
The “loans” line consists mostly of loans granted by La Poste to its subsidiaries.
The main changes in intra-group loans recorded in 2013 break down as follows:
(€ million)Increase
(loans granted)Reduction
(loans repaid)
Poste Immo - -
GeoPost - 9
Sofipost 18 13
Véhiposte GIE 33 73
Véhiposte SAS 121 6
Change in accrued interest (a) 82 83
Total 254 184(a) AIND: Accrued interest not due.
The breakdown of loans and other non-current financial assets by maturity was as follows:
Maturity date
(€ million) 31/12/2013 < 1 year1 to
5 years > 5 years 31/12/2012
Equity investments 6,439 - - 6,439 6,434
Dividends receivable - - - - -
Gross loans receivable 3,176 534 1,683 959 3,108
Other non-current financial assets 834 23 11 800 50
Total 10,449 557 1,694 8,198 9,592
Impairment on loans relates solely to loans to construction entities (included in “Other loans”).
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NOTE 12 Inventories and work-in-progress
This item breaks down as follows:
31/12/2013
31/12/2012(€ million) Gross value Provisions Net value
Raw materials, supplies, traded goods
and other supplies 87 (4) 83 93
Finished goods and components 31 - 31 34
Total 118 (4) 114 127
NOTE 13 Operating receivables and payables
13.1 Operating receivables
13.2 Operating payables
13.1 Operating receivables
Operating receivables break down as follows:
Maturity date
31/12/2012(€ million) 31/12/2013 < 1 year1 to
5 years > 5 years
Trade receivables 998 998 - - 978
Impairment of trade receivables (30) (30) - - (26)
Accounts receivable for international mail 468 468 - - 442
Trade receivables 1,436 1,436 - - 1,394
Tax and employee-related receivables 482 206 276 - 165
Other operating receivables 131 131 - - 125
Other accounts receivable 613 337 276 - 290
Total 2,049 1,773 276 - 1,684
Tax and social security receivables primarily consist of a €285 million Government receivable in respect of a tax credit for
competitiveness and employment ("CICE") (see Highlights).
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13.2 Operating payables
Operating payables break down as follows:
Maturity date
(€ million) 31/12/2013 < 1 year1 to
5 years > 5 years 31/12/2012
Trade and other accounts payable 768 768 - - 787
Accounts payable for international mail 364 364 - - 356
Tax and employee-related payables 1,240 1,240 - - 1,289
Other operating payables 445 445 - - 386
Total 2,817 2,817 - - 2,818
Receivables and payables on international mail transactions are mostly incurred with foreign postal operators in connection
with terminal fees. Terminal fees are charges for services performed by post offices in order to process mail arriving from
other foreign operators.
NOTE 14 Accrued income and expenses
14.1 Assets
14.2 Equity and liabilities
14.1 Assets
31/12/2013 31/12/2012
(€ million) Ref.Accrued income
Accrued balance
Accrued income
Accrued balance
Intercompany loans receivable Note 11 83 3,097 83 3,027
Other non-current financial assets Note 11 3 834 49
Trade receivables Note 13 74 998 73 978
Other international mail receivables Note 13 425 468 403 442
Tax and employee-related receivables Note 13 118 482 75 165
Other operating receivables Note 13 86 131 91 125
Total 790 725
405Registration document 2013 / LE GROUPE LA POSTE
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14.2 Equity and liabilities
Ref.
31/12/2013 31/12/2012
(€ million)Accrued
expensesAccrued balance
Accrued expenses
Accrued balance
Financial debt Note 21 131 6,614 136 7,063
Trade and other accounts payable Note 13 552 768 543 787
Other international mail payables Note 13 344 364 333 356
Tax and employee-related payables Note 13 919 1,240 963 1,289
Other operating payables Note 13 257 445 226 386
Total 2,205 2,201
Interest accrued not due on financial debt is described in detail in Note 21, “Financial debt”.
Accrued tax and employee-related expenses primarily include the provision for paid leave (2013 expense of €366 million
compared with €398 million in 2012).
NOTE 15 Miscellaneous receivables and payables
This item breaks down as follows:
(€ million)
31/12/2013 31/12/2012
AssetsEquity and
liabilities AssetsEquity and
liabilities
Current accounts - 435 - 353
Receivables / payables with La Banque Postale - 241 - 181
Other debtors / creditors 37 51 41 54
Total 37 727 41 588
The current account position presents La Poste’s position
in the context of the central corporate treasury system set
up with the Group’s subsidiaries.
Receivables and payables with La Banque Postale arose
due to:
customer transactions carried out in cash (primarily Post
Office Checking Accounts [CCP] (1) and National Savings
Accounts [CNE] (2)), transactions in foreign currencies,
and domestic and international money orders) in the
banks and operations to load and unload ATMs;
cash transactions with Banque de France aimed at
supplying and collecting cash from post offices;
the balance of the weekly advances paid by La Banque
Postale pending adjustment.
(1) CCP: Postal cheque accounts (comptes-chèques postaux).
(2) CNE: National savings bank (Caisse Nationale d’Épargne).
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The balance of other receivables consists mainly of:
€22 million in third-party receivables;
€6 million in deferred debt issuance expenses.
The other payables balance mostly consisted of:
repayable cash amounts received on behalf of third
parties: €40 million in 2013 (compared with €43 million
in 2012), which correspond to sales made by La Poste on
behalf of third parties (telecoms operators, Chronopost,
etc.);
the unpaid portion of the subscription to the XAnge2
fund, which amounted to €9 million.
NOTE 16 Accrual Accounts
16.1 Assets
16.2 Equity and liabilities
16.1 Assets
(€ million) 31/12/2013 31/12/2012
Exchange losses (a) 113 107
Prepaid expenses 65 72
Other transactions 3 6
Total 181 185(a) Unrealised foreign exchange relates mainly to the bond debt; in effect, the bond debt is backed by currency swaps to fully cover the exchange rate risk.
Prepaid expenses include:
prepaid expenses on bond equalisation payments, which
amounted to €23 million (compared with €26 million as
at 31 December 2012);
prepaid operating expenses of €42 million (31 December
2012: €45 million), which primarily corresponded to
property rents invoiced in advance.
16.2 Equity and liabilities
(€ million) 31/12/2013 31/12/2012
Exchange losses (a) 149 144
Deferred income 120 96
Other transactions 8 1
Total 277 241(a) Unrealised foreign exchange relates mainly to the bond debt; in effect, the bond debt is backed by currency swaps to fully cover the exchange rate risk.
Prepaid income consisted of:
prepaid income on bond equalisation payments, which
amounted to €30 million (compared with €35 million as
at 31 December 2012);
prepaid operating income, which amounted to
€90 mill ion (compared with €62 mill ion as at
31 December 2012).
Other transactions primarily correspond to various
transfers between entities.
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NOTE 17 Marketable securities and cash
This item breaks down as follows:
(€ million) 31/12/2013 31/12/2012
Marketable securities 1,692 1,607
Impairment of marketable securities - -
Marketable securities 1,692 1,607
Cash 1,248 2,031
Petty cash 618 726
Total 3,558 4,364
Marketable securities are made up of short-term
investments, which are easily convertible into known
amounts of cash and where the risk of a loss in value is
negligible.
At 31 December 2013, marketable securities comprised:
- negotiable debt securities, which amounted to
€100 million (down €105 million compared with
31 December 2012);
- investment funds and/or mutual funds amounting
to €1,492 million (up €142 million compared with
31 December 2012);
- and bonds amounting to €100 million (up €49 million
compared with 31 December 2012).
Unrealised gains on marketable securities (UCITS only)
as at 31 December 2013 amounted to €11.7 million
(compared with €9.9 million as at 31 December 2012).
Cash at bank includes bank accounts, bills of exchange
receivable and cash investments.
The €550 million reduction in cash investments was
primarily due to:
several term investments amounting to €1,025 million
maturing;
taking out several term deposits during 2013 totalling
€475 million.
In addition, La Poste invested €150 million in interest-
bearing sight accounts at 31 December 2013, down €250
million compared with 31 December 2012.
Cash in hand primarily consisted of cash required for the
operation of post offices, which amounted to €612 million
as at 31 December 2013, compared with €720 million as at
31 December 2012.
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NOTE 18 Impairment of assets
Changes in asset impairment during 2013 were as follows:
Balance at 31/12/2012
Charges 2013
2013 reversals
ReclassificationsBalance at
31/12/2013(€ million) used not used
Intangible assets - - - - - -
Property, plant and equipment 8 6 - (5) - 9
Impairment on P, P&E and intangible assets 8 6 - (5) - 9
Equity investments 1 - - - - 1
Loans receivable 25 - - - - 25
Impairment on non-current financial assets 26 - - - - 26
Inventories and work-in-progress 3 4 (3) - - 4
Trade receivables 26 12 (4) (4) - 30
Other debtors 28 3 (2) (1) - 28
Impairment on current assets 57 19 (9) (5) - 62
Total 91 25 (9) (10) - 97
Impairment charges on property, plant and equipment are recorded in accordance with the principles defined in Section G
Accounting Policies.
Additions and reversals of impairment charges over the year broke down as follows:
Charges Reversals
(€ million)Operating
earningsFinancial
items
Non-recurring
itemsOperating
earningsFinancial
items
Non-recurring
items
Intangible assets and property, plant
and equipment - - 6 - - (5)
Equity investments - - - - - -
Loans receivable - - - - - -
Inventories and work-in-progress 4 - - (3) - -
Trade receivables 12 - - (8) - -
Other debtors 3 - - (3) - -
Total 19 - 6 (14) - (5)
Grand total 25 (19)
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NOTE 19 Equity
2013 changes in equity broke down as follows:
(€ million)Share
capitalShare premium
account ReservesRetained
earnings (losses)Net profit
for the yearTotal
equity
Balance at 31/12/2011 3,400 700 469 276 179 5,024
Appropriation of earnings 9 26 (35) -
Dividend payments (144) (144)
Net income (loss) for the period 66 66
Balance at 31/12/2012 3,400 700 478 302 66 4,946
Capital increase 400 200 600
Appropriation of earnings 3 (3) -
Dividend payments (109) (63) (171)
Net income (loss) for the period 84 84
Balance at 31/12/2013 3,800 900 481 193 84 5,458
As at 31 December 2013, the share capital amounted to
€3.8 billion, divided into 950 million ordinary shares with a
nominal value of €4 each. As at that date, 73.7% of share
capital was owned by the Government and 26.3% was owned
by Caisse des Dépôts.
Background
On 1 March 2010, La Poste became a public limited
company, with a share capital set at €1 billion, split into
500 million entirely paid-up shares with a nominal value of
€2 each. This share capital is, by law, wholly-owned by the
French Government or Government-owned entities, except
for any portion reserved for La Poste employees.
Prior to that date, La Poste was an independent State-
owned company, with no share capital as legally defined.
At its 10 February 2011 meeting, the Board of Directors
approved a planned €2.7 billion capital increase, to which
the French government was to subscribe €1.2 billion and
Caisse des Dépôts €1.5 billion.
The extraordinary general assembly of 6 April 2011 approved
the following resolutions:
share capital increase of €1 billion through an increase
in the nominal value of the existing shares from €2 to €4,
by capitalisation of reserves;
issue of 350 million new shares with equity warrants
(ABSA) at a price per share of €6, including €4 nominal
value and €2 issue premium, amounting to a total of
€2.1 billion including €1.4 billion share capital and
€700 million issue premium;
an equity warrant (BSA) is attached to each new
share. The BSAs issued will entitle their holders to
subscribe to 100 million new shares between 1 March
and 30 April 2013 for a total amount of €600 million,
including €400 million share capital and €200 million
issue premiums. The French government and Caisse
des Dépôts have made an irrevocable commitment to
exercise all their BSAs no later than the last day of the
exercise period (i.e. 30 April 2013);
inclusion of Caisse des Dépôts in the Group’s corporate
governance, with three representatives on the Board of
Directors.
A first tranche of €1.05 billion for the capital issued was
made in April 2011, and included €467 million from the
Government and €583 million from Caisse des Dépôts.
The second €1.05 billion tranche was paid in 2012
and included €467 million from the Government and
€583 million from Caisse des Dépôts.
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Position as at 31 December 2013
In accordance with the resolutions relating to La Poste's
capital increase taken at the 6 April 2011 Extraordinary
General Meeting, in April 2013 the Government and Caisse
des Dépôts exercised the 350 million equity warrants they
held, which resulted in the issue of 100 million new shares
at a price per share of €6 including €2 issue premium.
In 2013, La Poste paid its shareholders a dividend of €0.18
per share amounting to a total of €171 million broken down
as follows:
French government: €126 million;
CDC: €45 million.
NOTE 20 Provisions for contingencies and charges
The following changes in provisions for contingencies and losses were recorded during 2013:
Balance at 31/12/2012
Charges 2013
2013 reversals Balance at 31/12/2013(€ million) used not used
Early retirement plans 878 383 (322) - 939
Employee severance pay on retirement 165 6 - - 171
Long-term sick leave / paid holiday / local taxes 353 11 (16) - 348
Legal risks 52 22 - (35) 39
Refurbishment 33 1 - (4) 30
Employee-related claims 55 64 (19) (25) 75
Contingencies 12 7 (5) (3) 11
Other contingency and loss provisions 125 2 (35) (3) 90
Total 1,673 496 (397) (69) 1,703
Accelerated depreciation 106 17 (12) - 111
The main assumptions used to measure provisions for
early retirement plans for state employees and retirement
benefits for contract employees are described in Note 24.
The provisions for legal contingencies relate to claims
brought before administrative, civil or commercial courts.
The refurbishment programme provision is intended to
cover the losses incurred on the return of vehicles used
under a lease agreement with Véhiposte, which amounted to
€30 million (compared with €33 million as at 31 December
2012).
Provisions for employee-related disputes cover all
employee disputes (industrial tribunals, etc.) and the risk of
adjustments demanded by URSSAF (French social security
body).
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The schedule for provisions for contingencies and losses as at 31 December 2013 was as follows:
(€ million)Balance at
31/12/2013Balance at
31/12/2014Balance at
31/12/2015Balance at
31/12/2016Balance at
31/12/2017Balance at
31/12/2018
Early retirement plans 939 324 271 182 114 48
Employee severance pay
on retirement 171 5 3 4 4 155
Long-term sick leave / paid holiday /
local taxes 348 172 88 75 11 2
Legal risks 39 33 6 - - -
Refurbishment 30 19 4 3 2 2
Employee-related claims 75 33 33 9 - -
Contingencies 11 2 3 2 1 3
Other contingency and loss
provisions 90 87 3 - - -
Total 1,703 675 411 275 132 210
Additions and reversals over the year broke down as follows:
Charges Reversals
(€ million)Operating
earningsFinancial
items
Non-recurring
itemsOperating
earningsFinancial
items
Non-recurring
items
Early retirement plans 383 - - (322) - -
Employee severance pay on retirement 6 - - - - -
Long-term sick leave / paid holiday /
local taxes 11 - - (16) - -
Legal risks 22 - - (35) - -
Refurbishment 1 - - (4) - -
Employee-related claims 64 - - (44) - -
Contingencies 7 - - (8) - -
Other contingency and loss provisions 1 1 - (2) (35) -
Total 495 1 - (431) (35) -
Grand total 496 (466)
Accelerated depreciation - - 17 - - (12)
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NOTE 21 Financial debt
Financial debt breaks down as follows:
(€ million) 31/12/2013 31/12/2012
Bonds excluding accrued interest 5,842 6,318
Accrued interest 109 113
Bonds 5,951 6,431
La Poste savings bonds ex accrued interest 63 66
Accrued interest 21 23
La Poste savings bonds 86 89
Deposits and guarantees received 390 513
Short-term borrowings 150 -
Bank accounts and bills of exchange payable 37 30
Total 6,614 7,063
The reduction in net financial debt is explained by a
€726 million redemption of 2006 bonds and a €250 million
addition to the bonds maturing on 26 November 2024) at a
coupon of 2.75%.
The October 14, 2013, La Poste issued three €50 million
notes with identical terms and conditions (maturing on
14 January 2014).
The debt maturity schedule (excluding bank accounts and bills of exchange payable) was as follows:
Maturity < 1 year
Maturity 1 to 5 years
Maturity > 5 years Total
(€ million) 31/12/2013 31/12/2012 31/12/2013 31/12/2012 31/12/2013 31/12/2012 31/12/2013 31/12/2012
Bonds excluding accrued interest 151 726 1,891 2,042 3,800 3,550 5,842 6,318
La Poste savings bonds ex
accrued interest 63 66 - - - - 63 66
Deposits and guarantees received 367 491 23 22 - - 390 513
Short-term borrowings ex accrued
interest 150 - - - - - 150 -
Accrued interest 130 136 - - - - 130 136
Total 862 1,419 1,914 2,064 3,800 3,550 6,576 7,033
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Bonds
The change in bond debt, excluding accrued interest not due, was as follows:
(€ million) 31/12/2012 Increase ReductionTranslation
adjustments 31/12/2013
Bonds 6,318 250 726 5,842
As at 31 December 2013, the breakdown of the outstanding bond debt by interest-rate type was as follows:
Debt structure before interest rate swaps
Impact of interest rate swaps
Debt structure after interest rate swaps
(€ million) Balance % Balance Balance %
Borrowings at fixed rates 5,842 100% (2,464) 3,379 57.8%
Borrowings at variable
rates - - 2,464 2,464 42.2%
Total borrowings 5,842 100% - 5,842 100%
As at 31 December 2013, the breakdown of the outstanding bond debt by currency was as follows:
Debt structure before currency swaps
Impact of currency swaps
Debt structure before currency swaps
(€ million) Balance % Balance Balance %
Euro 5,400 92% 442 5,842 100%
Pound Sterling 291 5% (291) - 0%
Swiss Franc 151 3% (151) - 0%
Total borrowings 5,842 100% - 5,842 100%
Issue premium on bonds
Unamortised issue premiums stemming from the difference
between the issue price received and the redemption price
amounted to €0.1 million for all bonds (premiums paid) as
at 31 December 2013, compared with €4 million (premiums
paid) as at 31 December 2012.
La Poste savings bonds
This item corresponds to La Poste’s savings bonds liability.
The balance of this line item is decreasing because all the
La Poste savings bonds are reaching maturity, since the last
issue dates back to November 2001.
Deposits and guarantees received
This item principally consists of collateral security deposits
received in conjunction with bond hedging transactions
amounting to €367 million as at 31 December 2013 and
€491 million as at 31 December 2012.
Short-term borrowings
Short-term borrowings relate to three treasury notes issued
in October 2013.
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NOTE 22 Information regarding transactions with related parties
Relations with the French government and public sector companies
Relations with the French government
Since the 10 February 2010 Act reaffirming the provisions
of the July 1990 Act on the restructuring of the postal and
telecommunications public service, La Poste has been
a public limited company overseen by the Minister for
productive turnaround responsible for SMEs under the
Minister for the Economy, Industry and Employment, and
subject to economic and financial control by the French
government, and the control procedures of the French Court
of Auditors and the French Parliament.
The undertakings of La Poste and the French government
were redefined by the "2013-2017 business contract"
approved by the Group's Board of Directors on 22 April 2013
and signed by all participating parties on 1 July, 2013.
This agreement provides for:
maintaining a broad scope of public service missions
assigned to La Poste: Universal Postal Service, press
transportation and delivery, banking accessibility mission
and regional development mission. with the latter three
missions giving rise to compensation for costs incurred;
progress in strengthening quality of service;
missions adapted to users' expectat ions and
technological advances;
implementation of corporate citizenship commitments
in favour of the development of regions and companies,
the most disadvantaged persons, the development of
the digital society and corporate social responsibility
initiatives.
The French Postal Regulation Act of 20 May 2005 provided
Arcep (French electronic communications and postal
services regulator) with the power to regulate, on a multi-
year basis, the Universal Postal Service's rates, after
reviewing Le Groupe La Poste’s proposals. In addition, this
Act confirmed and clarified La Poste’s regional planning
mission.
Relations with public sector companies
Le Groupe La Poste enters into transactions with public
sector companies in the normal course of its business. They
are entered into under market conditions.
Relations with companies falling within the scope of consolidation
Transactions carried out between consolidated companies are carried out under market conditions.
The impact of these transactions on La Poste’s financial statements was as follows:
(€ million) 31/12/2013 31/12/2012
Non-current financial assets 10,317 9,442
Financial debt (8) (6)
Operating receivables 153 148
Operating payables (400) (362)
Other debtors - 21
Miscellaneous creditors (695) (545)
Cash and marketable securities 300 800
Operating expenses (1,469) (1,493)
Operating revenue 3,603 3,598
Financial expenses (1) (9)
Financial income 472 452
Non-recurring expenses - (7)
Non-recurring income - 7
Related companies are deemed to be companies that are fully consolidated by Le Groupe La Poste.
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Off-balance-sheet commitments
NOTE 23 Financial derivatives
31/12/2013 31/12/2012
(€ million) Notional value Fair value Notional value Fair value
Hedging transactions 2,733 391 2,576 523
Individual hedge open positions 2,520 (42) 2,546 (63)
Total 5,253 349 5,122 460
The financial instruments used by La Poste are shown
according to their hedging purpose.
Hedging swaps used for financial management purposes
relate to transactions aimed at controlling the cost of
La Poste’s debt.
In accordance with Group accounting principles, a provision
may be recorded on swaps in isolated open positions
relating to La Poste’s bonds, in order to cover unrealised
losses on financial instruments.
As at 31 December 2013, the provision amounted to
€40 million (compared with €75 million as at 31 December
2012).
Counterparty risk management
Market transactions are only carried out with top-tier banks
or financial institutions within the rating terms and the
authorization limits set for each counterparty by La Poste’s
Executive Management.
NOTE 24 Employee benefit commitments
24.1 Measurement methods
24.2 Main actuarial assumptions used to measure all employee benefit commitments
24.3 Pension plan for State employees attached to La Poste
24.4 Post-employment benefits granted to retired state employees
24.5 Retirement allowances for La Poste’s contract staff
24.6 Staff early retirement plans
24.7 Other long-term benefits
24.8 Individual Training Rights
All details about La Poste’s post-employment and long-term benefit commitments are given in this note.
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The following table summarises the accounting treatment of the various existing plans:
Balance sheet Off-balance sheet
2013 2012 2013 2012
Post-employment benefits granted to retired state employees X X
Retirement allowances for La Poste’s contract staff X X
Staff early retirement plans X X
Other long-term benefits (paid leave) X X
24.1 Measurement methods
Post-employment long-term benefits
Post-employment and long-term benefits resulting from
defined benefit plans, together with the related costs
are measured using the projected unit credit method, in
accordance with IAS 19 revised. Actuarial appraisals are
carried out every year.
The calculations are based on independent economic
actuarial assumptions for the discount rate, inflation
rate, and the rate of increases in pensions, etc., and on
assumptions specific to La Poste including employee
turnover, mortality rate, and the rate of increases in
salaries, etc.
24.2 Main actuarial assumptions used to measure all employee benefit commitments
Discount rate
The gross discount rates used for 2013, which were
determined in reference to top-tier corporate bonds, were
as follows:
Length of the commitments 5 years 20 years
Discount rate (Euro zone) 1.6% 3.2%
Inflation rate
The inflation rate used to measure employee benefit
commitments as at 31 December 2013 was 2% (the same
rate as at 31 December 2012).
Change in pensions and remunerations
Pension increases are linked to inflation. The long-
term trend selected for wages and salaries is based on
reasonable assumptions regarding inflation.
24.3 Pension plan for state employees attached to La Poste
Description of La Poste's liability
Article 150 of the amended 2006 Finance Act (LFR),
published in the Official Journal on 31 December 2006,
established the system for funding pensions of State
employees attached to La Poste. This plan changes the
previous funding plan so as to gradually put La Poste on an
equal footing with competitors.
The reform implemented in December 2006, and approved
by the European Commission in 2007, includes:
the implementation of an employer contribution aimed at
discharging all the employer’s pension liabilities as from
1 January 2006. This rate was gradually reduced down
to a so-called “competitively fair” rate in 2010, i.e. a level
that brings the mandatory salary-based social security
and tax charges at La Poste down to the level at other
companies in the postal and banking sectors. Over the
period 2006 to 2009, the law set an additional rate (16.3%
in 2006, 6.8% in 2007, 3.7% in 2008, and 1.3% in 2009)
which was added to the competitively fair rate;
the transfer of the task of centralising and distributing
the flow of retirement benefits to La Poste’s State
employees between the French government, La Poste
and any other relevant bodies to the EPNFRLP
(Établissement Public National de Financement des
Retraites de La Poste, the French government agency
for the funding of La Poste’s pensions), which was
established beforehand via the Decree of 19 December
2006. The EPNFRLP is responsible for negotiating
financial agreements provided for under Title II, Book II
and under Title II, Book IX of the French Social Security
Code;
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payment of a one-time contribution of €2 billion to this
public agency by La Poste in 2006.
With the implementation of this plan, and given that the
employer contribution is made in full discharge of the
obligation, no provision is recorded in La Poste’s financial
statements in respect of state employees’ retirement
benefits.
24.4 Post-employment benefits granted to retired State employees
Other commitments for post-employment benefits include:
employee welfare services provided to retired state
employees, which primarily include home help and
holiday vouchers;
a loyalty bonus granted to retired state employees who
have their pension in a current account at La Banque
Postale;
granting assistance to voluntary organizations that
provide services for retired state employees.
Measurement of the commitment
The total value of post-employment benefit commitments
was estimated at €451 million as at 31 December 2013,
compared with €477 million as at 31 December 2012.
In accordance with the option provided under Article L. 123-13
of the French Commercial Code, no provisions have been
recorded in respect of these post-employment benefits.
24.5 Retirement allowances for La Poste’s contract staff
Description of existing schemes
Employees who retire from La Poste and are eligible for a
pension receive a retirement benefit, which is determined
on the basis of their length of service and final salary.
Amount recognized on the balance sheet
The provision recorded for retirement benefits payable
to La Poste’s contract staff (shown under “Provisions for
contingencies and losses” in balance sheet liabilities) was
€171 million as at 31 December 2013 (€165 million as at
31 December 2012).
24.6 Staff early retirement plans
Arrangements for part-time senior employees ("TPAS")
Under certain conditions, La Poste employees may benefit
from arrangements for part-time senior employees
("TPAS"). This scheme is offered to some people
(state employees and contract staff) who meet the age
requirements. The scheme was introduced in 2011, and its
terms are updated every year based on demographic trends,
the Company's financial health and pensions legislation.
Amount recognized on the balance sheet
The value of the provision for this scheme (appearing under
"Provisions for contingencies and losses" as a liability in the
balance sheet) was €576 million as at 31 December 2013
(€261 million at 31 December 2012).
This provision covers staff who joined the scheme prior to
the balance sheet date.
The main terms of this programme, which were established
in December 2013 in respect of 2014, are as follows:
Enrolment in the scheme is open to employees aged at
least 56 and a half (for state employees and office staff)
or 53 and a half (active State employees) for people who
work (or have worked for at least 10 years in the past) in
harsh conditions.
People who do not work in harsh conditions may join
the scheme once they reach 58 and a half (for state
employees and office staff) or 54 and a half (active state
employees).
This scheme is reserved for state employees and
employees who have worked for at least 10 years with
La Poste, and who will be eligible for full pension
benefits at the legal retirement age.
The length of participation in the plan is fixed upon
enrolment and is not subject to change. Participation is
for a minimum of one year and the maximum age at the
end of the scheme corresponds to the pension eligibility
age set by law.
During the term of the scheme, State employees work
part-time (70%) in an administrative position, with a
proportional reduction in their remuneration.
Work performed during the scheme is split between
operational and advisory activities.
As from 2014 all La Poste staff, who meet the above
conditions, may enrol in the scheme.
This new agreement has no impact on the La Poste
company financial statements.
Registration document 2013 / LE GROUPE LA POSTE418
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Furthermore, the following early retirement plans have
been available in the past, and continue to be the subject of
provisions for the persons still benefiting from them as at
31 December 2012. A minimum seniority of 15 years as a
Government employee is also required.
Part-Time Consulting (PTC)
Employees eligible for the PTC scheme enjoy reduced
working hours in exchange for a proportional reduction in
their remuneration.
This scheme is open to employees who have turned 56,
provided that it is followed up by part-time mentoring
and consulting (PTMC) or a new part-time mentoring and
consulting (NPTMC) scheme (see definitions below) by the
time they turn 58 and a half.
These reduced working hours may involve performing
training activities. It is up to the department manager to
decide on the nature of activities and how they are organised
(working conditions). The PTC scheme is an irreversible
arrangement, which must subsequently be followed by a
PTMC or NPTMC scheme.
Part-Time Mentoring and Consulting (PTMC)
Employees eligible for the PTMC scheme can leave
their operational position from the age of 57 and receive
partial remuneration in return for remaining available for
mentoring and/or consulting assignments.
New Part-Time Mentoring and Consulting (NPTMC)
Employees eligible for the NPTMC scheme can leave
their operational position from the age of 58 and a half
and receive partial remuneration in return for remaining
available for mentoring and/or consulting tasks.
Adjusted end-of-career arrangements (AECA)
Employees who benefit from AECA enjoy a period during
which they work half-time in return for proportionally lower
remuneration, followed by a work exemption up to the legal
retirement age. A bonus is paid on retirement. This scheme
is available to state employees aged 56 and 57.
Exemption from Work (EW)
This scheme, which was introduced by La Poste, is offered
to certain state employees in active roles who meet the age
criteria and are affected by regional agreements linked to
restructuring programmes.
The employees concerned, who have 15 years of active
service and are aged between 53 and a half and 55 years are
exempt from any work from the age of 53 and a half, subject
to their taking retirement as from age 55. When they retire
at age 55, the employees receive an End-of-Career Bonus.
Amount recognized on the balance sheet
The value of the provision for this scheme (appearing under
"Provisions for contingencies and losses" as a liability in the
balance sheet) was €363 million as at 31 December 2013
(€617 million at 31 December 2012).
24.7 Other long-term benefits
Description of existing schemes
These are paid leave schemes:
Accrued leave: Accrued leave is a scheme that allows
employees to accrue part of their unused earned leave
beyond the period for using earned paid leave.
Supplementary leave: state employees from the overseas
departments or who work in the overseas departments
benefit from paid supplementary leave, as well as from
paid travel expenses.
Long-term sick leave.
Amount recognized on the balance sheet
The provision for long-term sick leave (included within
"Provisions for contingencies and losses") was €348 million
as at 31 December 2013 (€353 million at 31 December
2012). These provisions are designed to cover the costs as
at the balance-sheet date of individual members of the paid
leave schemes described above.
24.8 Individual Training Rights (DIF or Droit individuel à la formation)
Rights earned and not used by Group staff in respect of
Individual Training Rights at 31 December 2013 amounted
to:
over 12.4 million hours for contract staff;
over 12.1 million hours for state employees.
419Registration document 2013 / LE GROUPE LA POSTE
Financial information regarding the assets and liabilities, financial position and results of the issuer
Separate financial statements
es, ernts 20
NOTE 25 Other off-balance sheet commitments
25.1 Off-balance sheet commitments received
25.2 Off-balance sheet commitments given
25.1 Off-balance sheet commitments received
a) Off balance sheet commitments received in relation to the consolidated Group
Commitments received in connection with the Company’s share capital: Not applicable.
Commitments relating to the disposal of Business Lines: Not applicable.
b) Off balance sheet commitments received in relation to the Company’s financing
Unused credit facilities and other potential sources of cash:
On 20 October 2011, La Poste arranged a €650 million
five-year renewable credit facility for an amount of
€650 million, for which it received commitments from
nine banks in a banking pool. This facility had not been
used as at 31 December 2013, and the agreement was
extended by one year (to October 2018).
In 2008, La Poste was granted a tacitly renewable
€300 million overdraft facility by La Banque Postale.
€8 million of this facility had been drawn down as at
31 December 2013. On 31 December 2013, €292 million
remains from this overdraft facility.
In 2009, La Poste was granted a €200 million renewable
five-year credit facility. This facility had not been drawn
down as at 31 December 2013.
In 2013, La Poste was granted a further €75 million
renewable five-year credit facility by BNP. This facility
had not been drawn down as at 31 December 2013.
Financial instruments arranged:
There were no financial instruments held and exercisable
at a date after the balance-sheet date.
c) Off balance sheet commitments received as part of the Company's business operations
Guarantees received as part of La Poste’s everyday business:
Total guarantees, endorsements and sureties received
by La Poste as part of its everyday business amounted
to €38 million as at 31 December 2013.
Property sale commitments: not applicable.
The total value of propertyrental commitments received
by La Poste from its subsidiaries (Poste Immo and
La Banque Postale) amounted to €1 million as at
31 December 2013.
25.2 Off-balance sheet commitments given
a) Off balance sheet commitments given in relation to the consolidated Group
Unrecognised investment commitments: Not applicable.
Commitments relating to the disposal of Business Lines: Not applicable.
b) Off balance sheet commitments given in relation to the Company’s financing
Financial instruments arranged:
The financial instruments held and exercisable at a date
after the balance-sheet date amounted to €200 million.
c) Off balance sheet commitments given in relation to the Company's business operations
Future rental payment commitments:
La Poste’s internal commitments with Group companies
amounted to €1,399 million, including €1,032 million
for property rentals (Poste Immo) and €367 million for
vehicle leases (Véhiposte).
Registration document 2013 / LE GROUPE LA POSTE420
Financial information regarding the assets and liabilities, financial position and results of the issuer Separate financial statements
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La Poste has made payment commitments amounting to
€446 million in connection with non-Group leases.
La Poste’s miscellaneous commitments (photocopiers,
maintenance, upkeep and cleaning of buildings, security
services, and IT services, etc.) amounted to €54 million.
Obligation to employ disabled workers:
On 8 March 2012, La Poste signed an agreement to
promote the employment of disabled people over the
period 2012 to 2014. The financial commitment relating
to disability as part of this agreement amounted to
€38 million as at 31 December 2013.
Finance leases: Not applicable.
Investment commitments:
As part of a grouped purchases initiative coordinated by
UGAP, the French Central Public Procurement Authority,
La Poste has undertaken to order 10,000 electric vehicles
from Renault by 2015. As at 31 December 2013, the
remaining commitment was for 5,437 vehicles for a total
amount of €129 million.
Orders to non-current assets suppliers as at
31 December 2013 amounted to €18 million.
Miscellaneous commitments:
Commitments to purchase carbon credits: La Poste has
undertaken to purchase 1,005 metric tonnes of carbon
equivalent based on a price of €5.86 per tonne.
Commitments given in relation to donations and corporate sponsorship:
La Poste has made a commitment amounting to
€3 million to transfer funds to La Fondation d’Entreprise
La Poste from 2014 to 2016.
La Poste’s other commitments relate to corporate
sponsorship initiatives for education (€1 million) and
sports sponsorship (€2 million).
421Registration document 2013 / LE GROUPE LA POSTE
Financial information regarding the assets and liabilities, financial position and results of the issuer
Separate financial statements
es, ernts 20
Notes to the statement of cash flows
NOTE 26 Charges and reversals in impairment, depreciation and provisions for contingencies and losses
(€ million) 31/12/2013 31/12/2012
Charges/Reversals to operating profit/(loss) 444 377
Change in CICE provision (36)
Charges/Reversals to financial items (34) (37)
Charges/Reversals to non-recurring items 6 18
Total 380 358
NOTE 27 Change in working capital
(€ million) 31/12/2013 31/12/2012
Change in inventories and work-in-progress 13 6
Change in operating receivables (38) 95
Change in operating payables 22 77
Change in other operating assets and liabilities 97 132
Total 94 310
NOTE 28 Outflows from purchase of non-current assets
(€ million) 31/12/2013 31/12/2012
Purchase of intangible assets (93) (89)
Purchase of P, P&E (179) (220)
Change in accounts payable of non-current asset suppliers (11) (6)
Total (283) (315)
Registration document 2013 / LE GROUPE LA POSTE422
Financial information regarding the assets and liabilities, financial position and results of the issuer Separate financial statements
fiS20
NOTE 29 Proceeds from disposals of non-current assets
(€ million) 31/12/2013 31/12/2012
Disposal of intangible assets and P, P&E 3 28
Impairment on non-current financial assets 188 457
Disposal of investments - -
Total 191 485
NOTE 30 Issuance of debt
(€ million) 31/12/2013 31/12/2012
Bonds 250 750
Commercial paper 150 -
Other borrowings - -
Total 400 750
NOTE 31 Repayments of borrowings
(€ million) 31/12/2013 31/12/2012
Bonds (726) -
La Poste savings bonds (2) (4)
Other borrowings - (666)
Total (728) (670)
NOTE 32 Closing cash and cash equivalents
(€ million) 31/12/2013 31/12/2012
Marketable securities and cash 2,947 3,645
Credit bank accounts (37) (30)
Bank accounts of subsidiaries (435) (353)
Total 2,475 3,262
423Registration document 2013 / LE GROUPE LA POSTE
Financial information regarding the assets and liabilities, financial position and results of the issuer
Separate financial statements
es, ernts 20
NOTE 33 List of subsidiaries and equity investments
(€ million)Share
capital
Equity other than
share capital
% equity
interest
Book value of investment
Balance of loans and advances
granted by the parent
company
Pledges and
guarantees given
by the Company
2013 net revenue
2013 earnings
Dividends received
by La PosteGross Net
Details of companies in
which the gross value of the
investment exceeds 1% of
La Poste's share capital:
Subsidiaries (over 50% interest)
GeoPost2, rue Louis-Armand
75015 Paris 702 1,105 100 1,240 1,240 705 - 43 225 77
Sofipost111, bd Brune
75670 Paris Cedex 14 218 43 100 263 263 250 - 13 15 5
La Banque Postale115, rue de Sèvres
75275 Paris Cedex 06 3,414 1,154 100 3,419 3,419 803 - 5,135 311 258
Poste Immo35-39, bd Romain-Rolland
75014 Paris 1,471 100 100 1,493 1,493 1,654 - 114 86 8
Equity investments (10% to 50% interest)
Not applicable
General information
on companies in which
the gross value of the
investment does not exceed
1% of La Poste's share
capital:
Subsidiaries / Equity investments 3,004 (213) 24 23 488 - 861 66
Total 6,439 6,438 3,900 - 6,165 703 348
Registration document 2013 / LE GROUPE LA POSTE424
Financial information regarding the assets and liabilities, financial position and results of the issuer Separate financial statements
fiS20
20.2.2 Report of the Statutory Auditors on the annual financial statements (For the year ended 31 December 2013)
To the Shareholders,
In compliance with the assignment entrusted to us by to us by the Ministerial Decree of 29 June 2009 and pursuant to Article
14 of the Act of 12 January 2010 on La Poste state-owned company and the postal business, we hereby present our report
on the year ended 31 December 2013 on:
The audit of the accompanying LA POSTE SA annual financial statements;
The justification of our assessments;
The specific verifications and information required by law.
These annual financial statements have been approved by the Board of Directors. Our role is to express an opinion on these
financial statements based on our audit.
I - Opinion on the annual financial statements
We conducted our audit in accordance with professional standards applicable in France. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit involves performing procedures, using sampling techniques or other methods of selection, to
obtain audit evidence about the amounts and disclosures in the financial statements. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made, as well as the overall
presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion.
In our opinion, the annual financial statements give a true and fair view of the assets and liabilities and of the financial
position of the Company as at 31 December 2013 and of the results of its operations for the year then ended in accordance
with French accounting principles.
II - Justification of our assessments
In accordance with the requirements of article L. 823-9 of the French Commercial Code (« Code de commerce ») relating to
the justification of our assessments, we bring to your attention the following matters:
Each year, LA POSTE tests the value of its equity investments, which represent a net amount of € 6,438 million as of
31 December 2013, in accordance with the method described in paragraph H of the “accounting policies” in the notes to
the separate financial statements. In assessing these valuations, we did not uncover anything likely to call into question
the reasonableness of the assumptions made and the resulting calculations.
Paragraph G of the “accounting policies” in the notes to the separate financial statements sets out the principles and
procedures applied for the purposes of testing the impairment of intangible assets and property, plant and equipment.
These are tested for impairment whenever there are indications of impairment losses, in accordance with the procedures
set out in paragraph G of the notes. We reviewed the procedures for carrying out this impairment test and verified that the
notes to the separate financial statements contain appropriate disclosures.
Paragraph P of the “accounting policies” and Note 24 on “employee benefit obligations” to the separate financial
statements sets out the principles and procedures applied to measure and record retirement benefit plan, early retirement
plans and other long-term benefits awarded to employees. We have reviewed the methods for calculating these obligations,
assessed the data used and the assumptions on which these assessments are based, and verified the appropriateness
of disclosures in the notes to the annual financial statements.
These assessments were made as part of our audit of the annual financial statements taken as a whole, and therefore
contributed to the opinion we formed which is expressed in the first part of this report.
425Registration document 2013 / LE GROUPE LA POSTE
Financial information regarding the assets and liabilities, financial position and results of the issuer
Separate financial statements
es, ernts 20
III. Specific verifications and disclosures
We have also performed, in accordance with professional standards applicable in France, the specific verifications required
by French law.
We have no matters to report as to the fair presentation and the consistency with the financial statements of the information
given in the management report of the Board of Directors and in the documents addressed to shareholders with respect to
the financial position and the annual financial statements.
Concerning the information given in accordance with the requirements of article L. 225-102-1 of the French Commercial
Code (“Code de commerce”) relating to remunerations and benefits received by the directors and any other commitments
made in their favour, we have verified its consistency with the annual financial statements, or with the underlying information
used to prepare these financial statements and, where applicable, with the information obtained by your company from
companies controlling your company or controlled by it. Based on this work, we attest the accuracy and fair presentation of
this information.
Paris La Défense and Courbevoie, on 21 February 2014
The Statutory Auditors
KPMG AuditA department of KPMG S.A.
Mazars
François Caubrière Isabelle Goalec Guy Isimat-Mirin Dominique Muller
Partner Partner Partner Partner
Registration document 2013 / LE GROUPE LA POSTE426
Financial information regarding the assets and liabilities, financial position and results of the issuer Dividend distribution policy
fiD20
20.3 Dividend distribution policy
The amount of the dividend to the title of the exercise 2013
will be proposed to a next Board of directors and will be
approved by the General assembly before June 30, 2014.
For 2012, La Poste distributed a dividend representing a
total amount of €171 million.
For 2011, Le Groupe La Poste distributed a dividend
representing a total amount of €144.5 million.
20.4 Legal and arbitration proceedings
Le Groupe La Poste is involved in a certain number of
arbitration, legal or administrative during the normal course
of its business activities. A provision is only recorded for the
expenses that may result from these proceedings where
they are likely and their amount may be either quantified,
or estimated within a reasonable range. In the last case,
the amount of the provision corresponds to the Group
Management’s best estimate. The nature of these disputes
is varied, and they occur in the Group’s various subsidiaries.
The amount of the provisions for contingencies recorded
for all the disputes in which the Group is involved amounted
to €177 million at 31 December 2013 and 159 million at
December 2012; these provisions are shown on the balance
sheet items "Non-current provision for contingencies
and charges" and "Non-current provisions for risks and
charges".
The proceedings launched against French banks by the
French Competition Authority in 2010, which related to a
breach of the competition rules at the time of the switch
to the electronic processing of checks, resulted in a
€33 million fine for La Banque Postale. This decision of the
French Competition Authority was overturned by a Paris
Court of Appeal ruling on 23 February 2012, and therefore
granted La Banque Postale the right to recover the full
amount of the fine. The French Competition Authority is
currently appealing said proceedings in the French Court
of Cassation, which results in a risk that has led La Banque
Postale to record a provision of €16.4 million with regard to
this dispute for the 2013 financial year.
At this time, there are no other government, legal or
arbitration proceedings—including any proceedings that are
pending or threatened of which the Company is aware—
that could have a material effect on the Group’s financial
position or profitability, or have had such an effect over the
last 12 months.
20.5 Material change in the Company’s financial
or commercial position
None.
427Registration document 2013 / LE GROUPE LA POSTE
21
21.1 Share capital 428
21.2 Memorandum of association and articles of association 430
Additional information
Registration document 2013 / LE GROUPE LA POSTE428
Additional information Share capital21
21.1 Share capital
21.1.1 Amount of issued share capital as at 31 December 2013
As at 31 December 2013, the Company’s share capital broke down as follows:
Number of fully paid up shares issued: 950,000,000
Nominal value of shares: €4
Type of shares issued: ordinary shares
Issue premium of fully paid-up shares: €2
Value of share capital: €3,800,000,000, fully paid up
21.1.2 Shares not representing capital
Not applicable.
21.1.3 Shares held by the issuer or its subsidiaries
Not applicable.
21.1.4 Other securities giving access to share capital
Not applicable.
21.1.5 Terms of any acquisition rights and/or bonds attaching to subscribed but unpaid share capital
Not applicable.
429Registration document 2013 / LE GROUPE LA POSTE
Additional information Share capital 21
21.1.6 Information on the share capital of any Group company subject to an option or conditional or unconditional agreement
There are no options or conditional or unconditional agreements to buy or sell the shares of Le Groupe La Poste subsidiaries.
21.1.7 History of the share capital
Until its conversion to a public limited company, La Poste—
as an industrial/commercial public entity—had no share
capital. On the day of its conversion to a public limited
company on 1 March 2010, the share capital was set at one
billion euros (€1,000,000,000).
At 31 December 2009, the amount the French government
had paid in capital to the public sector company represented
€2,258,000,000; in the first half of 2010, €1,258,000,000 was
reclassified from “Share capital/initial equity” to “Other
reserves”.
A decision was made that the French government and
Caisse des Dépôts et Consignations (CDC) would contribute
€1.2 billion and €1.5 billion respectively to the capital
increase of €2.7 billion. A subscription agreement setting
out the terms of the transaction and the commitments of
each party was signed with the French government, Caisse
des Dépôts and La Poste on 11 February 2011.
The terms of La Poste’s share capital increase are as
follows:
i. Prior transaction: capital increase for La Poste through
the capitalisation of reserves and an increase in the
nominal value:
- At the time of conversion to a public limited company,
La Poste’s share capital was initially set at €1 billion,
divided into 500 million ordinary shares with a
nominal value of €2 each.
- The share capital was increased by the Extraordinary
General Meeting on 6 April 2011, which approved
the transaction through an increase in the nominal
value per share and the capitalisation of €1 billion
in reserves, bringing the share capital to €2 billion
divided into 500 million shares with a nominal value
of €4 each.
ii. Signature of a capital increase subscription agreement
between La Poste, Caisse des Dépôts et Consignations
and the French government.
This contract formalises the irrevocable commitment to
subscribe to up to €2.7 billion in shares.
iii. Capital increase in the form of shares with equity
warrants (ABSA).
The capital increase involved the issue of 350 million
equity warrants (ABSA) and the exercise of 350 million
shares with equity warrants (BSA) granting access to
100 million shares, i.e. a total of 450 million shares
issued at €6 per share (i.e. €4 nominal value and €2
issue premium), thereby allowing the €2.7 billion capital
increase to take place. The capital increase was carried
out in three stages:
- Issue of 350 million equity warrants: on 6 April 2011,
the French government and Caisse des Dépôts et
Consignations subscribed to 350 million shares with
equity warrants, taking 44% (i.e. 155,555,556 shares)
and 56% (i.e.194,444,444 shares) respectively.
The issue amount, €2.1 billion, was paid in two
instalments, including €1.050 billion on 6 April 2011.
- Called up share capital: on 8 March 2012, the
Company’s Board of Directors called in payment of the
remaining share capital not yet paid up amounting to
€1,050,000,000, which was subsequently paid by the
French government (€466,666,668) and by Caisse des
Dépôts (€583,333,332). At its meeting held on 11 May
2012, the Company’s Board of Directors confirmed
the payment of the remaining share capital, which
led to an amendment to Article 6 of the articles of
association “Share Capital”, which was carried out by
the Extraordinary General Meeting on 7 June 2012.
- Exercise of equity warrants: on 15 April 2013, the
350 million equity warrants attached to shares were
exercised, leading to the issue of 100 million new
shares subscribed for by the French government up
to 44% and by Caisse des Dépôts et Consignations
up to 56%. These shares have the same value as
those issued in 2011, i.e. €6 (including €2 in issue
premium). The total amount of this subscription
Registration document 2013 / LE GROUPE LA POSTE430
Additional information Memorandum of association and articles of association21
amounted to €600 million for a nominal amount
of €400 million, coupled with an issue premium of
€200 million, and was fully paid-up at the time of
subscription. The meeting of the Board of Directors
of 22 April 2013 paid the amount of issued shares
following the exercise of equity warrants, the capital
increase and the correlating revision of Article 6 of the
articles of association entitled, Share capital.
21.1.8 Pledging of Company securities
To the best of La Poste’s knowledge, none of the ordinary shares making up the share capital is included in any pledge.
21.2 Memorandum of association and articles of association
21.2.1 Corporate purpose
The Company fulfils a public service mission and general
interest role and conducts other business activities in
accordance with Act 90-568 of 2 July 1990, its articles of
association and legislation governing each of its areas of
business activity.
The public service mission and general interest role
includes:
the Universal Postal Service;
the contribution, through its network of public outlets, to
regional planning and development;
press transportation and delivery;
banking accessibility under the terms set out in Articles
L. 221-2 and L. 518-25-1 of the French Monetary and
Financial Code.
Following normal rules, the Company collects, sorts,
transports and delivers all kinds of mail, parcels and goods.
The Company is authorised—in France and abroad,
independently or through subsidiaries or associated
companies—to carry out any business activity that directly
or indirectly relates to its legally defined obligations and
business activities, as well as any other business activity
covered by its articles of association.
This includes any kind of involvement in any operations or
business activities relating to any of the aforementioned
objectives or likely to increase the value of the Company’s
assets through the creation of new enterprises, the
contribution, subscription or purchase of any kind of shares,
rights, interests or equity investments in any existing or
future company or enterprise, mergers, partnerships or
any other association, and more generally the execution
of any commercial, industrial, technical, financial, service,
real estate or securities transaction—on behalf of third
parties, on a proprietary basis or as part of a joint venture—
directly or directly, in whole or in part, relating to any of the
aforementioned objectives, any similar, complementary or
connected objectives, or any objectives likely to contribute
towards the Company’s business development.
431Registration document 2013 / LE GROUPE LA POSTE
Additional information Memorandum of association and articles of association 21
21.2.2 Management bodies
The Company is administered by a Board of Directors,
membership of which complies with the provisions of Act
83-675 of 26 July 1983.
However, by exception to Article 5 of this Act, the
Board of Directors comprises 21 members, with seven
representatives of each of the categories listed in
paragraphs 1, 2 and 3 of said Article. A representative
of municipalities and groups of municipalities, and a
representative of La Poste users are among the individuals
chosen for their specific skills.
Furthermore, by exception to Article 5 of the Act dated
26 July 1983 and the aforementioned provisions, and in
accordance with Article 10 of the Act of 2 July 1990, from
the date of Caisse des Dépôts et Consignations’ arrival, the
Board of Directors will be composed as follows:
for one third, by staff representatives elected under the
conditions set out in Chapter II of Title II of Act 83-675
of 26 July 1983;
for two thirds, by a representative of municipalities
and groups of municipalities, a representative of users
appointed by decree, and representatives appointed
by the shareholders’ General Meeting to ensure
representation that reflects their share of the share
capital and enables them to collectively hold the majority
of voting rights on the Board of Directors.
The term of office for Board of Directors members is five
years. The end of all Company Board members’ terms
of office coincides with those of the Board members
representing staff on the Board of Directors.
Staff representatives’ terms of office on the Board were
unaffected by La Poste’s conversion to a public limited
company, and run for a full five years, except in cases of
early termination as provided for by law.
By exception to the five-year period, the Company’s first
Board members’ term of office appointed by decree, and
that of any Board member elected at the General Meeting
as a replacement for a Board member appointed by decree
or vice versa, end on the same date as those of the Board
members representing staff on the Board of Directors.
Should a member of the Board of Directors leave his or her
position for any reason, a replacement will sit only for the
remainder of the term of office, until the entire Board of
Directors is renewed.
During their term of office, Board members who are not
appointed by the General Meeting provide their services free
of charge, with the possible exception of Board members
appointed in accordance with the third paragraph (2°) of
Article 5 of the Act of 26 July 1983. The General Meeting
determines the amount of any directors’ fees to be paid, if
appropriate, to the other Board members.
The Company reimburses any costs that Board members
may incur in the course of their term of office on production
of receipts.
Staff representatives are allowed to spend half of their
working week on Board matters.
The General Meeting may dismiss of any Board member
it appoints.
Should one or more seats of Board members elected by the
General Meeting fall vacant through death or resignation,
the Board of Directors may make temporary appointments
between two General Meetings. These appointments must
be ratified at the next Ordinary General Meeting. If this
ratification is not forthcoming, the decisions and actions
previously taken by the Board will still be valid.
The Chairman of the Company’s Board of Directors is
appointed from among the Board members by decree,
following a proposal by the Board members. His term
carrying out such duties may not exceed his term of office
as a Board member. These terms may be renewed under
the same conditions. They may also be terminated in
accordance with the aforementioned Article 10 of the Act
of 26 July 1983.
The Chairman of the Board of Directors also serves as
Chief Executive Officer of the Company. He has the title of
Chairman and Chief Executive Officer.
No person may be appointed Chairman of the Board of
Directors or Chief Executive Officer if aged 68 or more
on the date of the appointment. If the incumbent Board
of Directors Chairman or Chief Executive Officer reaches
the age of 68, his/her duties will end after the first General
Meeting held after his/her sixty-eighth birthday.
At the suggestion of the Chairman and Chief Executive
Officer, the Board of Directors may appoint one or more
individuals to the supporting position of Executive Officer.
There can be a maximum of five executive officers. The
Board of Directors determines the duration of the position,
the remuneration and any limits on the powers of each
executive officer.
If the Chairman and Chief Executive Officer terminates
or is prevented from performing his/her duties, the
executive officers retain their positions and duties until
the appointment of the new Chairman and Chief Executive
Officer, unless the Board decides otherwise.
Registration document 2013 / LE GROUPE LA POSTE432
Additional information Memorandum of association and articles of association21
21.2.3 Rights attached to shares
Each share gives a right to the profits and Company assets
proportionate to the percentage of the share capital that
it represents. It also confers the right to vote and be
represented at General Meetings under normal legal
conditions. Each share confers a right to information and
communication as provided for in Articles L. 225-115 et seq.
of the French Commercial Code. Ownership of a share
automatically implies compliance with the articles of
association and the decisions of the General Meeting.
Shareholders’ losses are limited to their investments.
Heirs, creditors, assignees or other representatives of a
shareholder may not require the sealing of the Company’s
property or securities, nor request a division or sale, nor
interfere in the work of the directors. To exercise their
rights, they must refer to the statements of Company assets
and liabilities and the decisions of the General Meeting.
Whenever ownership of more than one share is necessary
to exercise any right, in the event of an exchange,
consolidation or grant of shares, or as a result of a capital
increase or reduction, merger or any other corporate
procedure, owners of single shares or a number lower than
the required amount may exercise this right only if acting
on behalf of a group or by buying or selling the necessary
amount of shares.
La Poste has issued only one category of shares.
21.2.4 Actions required to change the rights of shareholders
The Extraordinary General Meeting alone is authorised to
amend any of the provisions of the articles of association.
However, it may not increase shareholders’ commitments,
except through transactions resulting from a lawful
grouping of shares.
La Poste has issued only one category of shares.
433Registration document 2013 / LE GROUPE LA POSTE
Additional information Memorandum of association and articles of association 21
21.2.5 General Meetings
21.2.5.1 Access to, participation in and voting at General Meetings
On proof of identity and share ownership, all shareholders
have the right to attend General Meetings and take part
in discussions under applicable legal and regulatory
conditions.
Shareholders may authorise their spouse or another
shareholder to represent them at a General Meeting.
They may also vote by letter post under the conditions as
provided for by law. The Company must receive the voting
form no later than three days before the date of the General
Meeting.
The authorizations and forms to vote by letter post may be
sent electronically if signed in accordance with applicable
legal and regulatory provisions.
21.2.5.2 Notification of General Meetings
General Meetings are called by the Board of Directors or,
failing this, the Statutory Auditors or any authorised person
in accordance with applicable laws and regulations. They
are held at the head office or any other place shown in the
notice.
They may be held by video conference or other means
of telecommunication that enable shareholders to be
identified in accordance with applicable legal and regulatory
provisions. In this case, individuals using these means are
deemed present when calculating the quorum and majority
of shareholders.
The notice is sent at least two weeks before the date of the
meeting. If the meeting cannot be held with the necessary
quorum, a second meeting and if necessary, an extension
to the second meeting will be called with at least 10 days’
notice, under the same conditions as the first.
21.2.5.3 Agenda and conduct of General Meetings
The agenda appears on the notice of the meeting and is
approved by the person convening the meeting. The meeting
may only discuss issues on the agenda.
An attendance register is kept at each meeting, containing
all legally required information.
Meetings are chaired by the Chairman and Chief Executive
Officer or, in his absence, a Board member authorised to do
so by the Board. Failing this, the shareholders elect their
own Chairman.
The positions of scrutineers are held by the two members of
the meeting, present and accepting the role, who personally
or as proxies receive the highest number of votes.
The Committee, comprising the Chairman and two
scrutineers, appoints the secretary who does not have to
be a shareholder.
The role of Committee members is to check, certify and
sign the attendance register, ensure debates run smoothly,
rule on any incidents, supervise voting and ensure voting is
lawful, and draw up the minutes.
The minutes are produced and copies of decisions are
certified and issued in accordance with the law.
21.2.5.4 Ordinary General Meeting
The Ordinary General Meeting is called to make all
decisions that do not alter the articles of association. It is
held at least once a year, within six months of each financial
year-end, to approve the annual financial statements. A
legal ruling may grant an extension to this deadline.
When first called, its decisions will only be valid if those
shareholders present or represented, or having voted by
letter post, hold at least one fifth of the shares to which
voting rights are attached. If a second meeting is held, no
quorum is required. Decisions are made on the basis of
a majority of votes cast by those shareholders present,
represented or having voted by letter post.
Registration document 2013 / LE GROUPE LA POSTE434
Additional information Memorandum of association and articles of association21
21.2.5.5 Extraordinary General Meeting
Only the Extraordinary General Meeting is authorised to
amend any of the provisions of the articles of association.
However, it may not increase shareholders’ commitments,
except through transactions resulting from a lawful merging
of shares.
Subject to any legal provisions to the contrary, decisions will
only be valid if those shareholders present or represented,
or having voted by letter post, hold at least one quarter of
the shares to which voting rights are attached at the first
meeting, or one fifth at the second. If the latter is inquorate,
the second meeting may be adjourned for up to two months
from the date when it was convened.
Subject to any legal provisions to the contrary, decisions
require a two-thirds majority of votes cast by those
shareholders present, represented or having voted by letter
post.
21.2.6 Provisions that could delay or prevent a change of control
In accordance with the provisions of the aforementioned
Article 1-2 of the Act of 2 July 1990, the share capital is held
by the French government—the majority shareholder—and
other publicly owned legal entities, with the exception of the
percentage of the share capital that may be held by staff
under the conditions set out in the same Act.
21.2.7 Provisions setting the threshold above which all equity investments must be disclosed
Not applicable.
21.2.8 Conditions governing changes in share capital
The share capital may be increased, reduced or written down under the conditions set forth by law.
435Registration document 2013 / LE GROUPE LA POSTE
22Material contracts
Registration document 2013 / LE GROUPE LA POSTE436
Material contracts 22
To the best of La Poste’s knowledge, there are no material contracts other than those agreed in the normal course of
business, presented in Chapter 5 on the Group’s business activities.
437Registration document 2013 / LE GROUPE LA POSTE
23Third-party information, statements
by experts and declarations of interest
Registration document 2013 / LE GROUPE LA POSTE438
Third-party information, statements by experts and declarations of interest 23
Not applicable.
439Registration document 2013 / LE GROUPE LA POSTE
24Publicly available documents
Registration document 2013 / LE GROUPE LA POSTE440
Publicly available documents 24
All documents made available to the public under normal
legal conditions may be obtained from the head office of
Le Groupe La Poste at 44, boulevard de Vaugirard, 75015
Paris.
The articles of association of Le Groupe La Poste are
available on its website www.legroupe.laposte.fr (access
via the header "Profil" [Profile] then "L’organisation"
[Organization] then "Le conseil d’administration" [Board of
Directors]).
Le Groupe La Poste’s consolidated financial statements
pertaining to the last three financial years (at least) are
also available on this website (access through the header
"Finance", then "Publications").
441Registration document 2013 / LE GROUPE LA POSTE
25Information on equity investments
Registration document 2013 / LE GROUPE LA POSTE442
Information on equity investments 25
Le Groupe La Poste does not have any non-consolidated
equity investments likely to have a material impact on the
appraisal of its assets and liabilities, financial position or
results. The main non-consolidated equity investments
are presented in Note 19 to the consolidated financial
statements (“Other Financial Assets”).
Equity investments in consolidated companies are shown in
Chapter 6, "Simplified organization chart", and in Note 41 on
the scope of consolidation in the notes to the consolidated
financial statements.
443Registration document 2013 / LE GROUPE LA POSTE
A
Appendice 1: Chairman report on corporate government, internal control procedures and risk management in the respect of 2013 . . . . . .445
Appendice 2: Auditors’ report, prepared in accordance with article L. 225-235 of the French Commercial Code, on the report of the Chairman of the Board of Directors of the company La Poste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489
Appendice 3: Summary of information pertaining to the social and environmental consequences of the business activities, and societal commitments in favour of sustainable development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493
Appendice 4: Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 509
Appendice 5: Cross reference table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 519
Appendices
Registration document 2013 / LE GROUPE LA POSTE444
445Registration document 2013 / LE GROUPE LA POSTE
A1
Introduction 446
1 Corporate governance 446
2 Internal control and risk management procedures 455
Appendix 481
Chairman's report on corporate
government, internal control
procedures and risk management
in respect of 2013
Registration document 2013 / LE GROUPE LA POSTE446
Chairman's report on corporate government, internal control procedures and risk management in respect of 2013IntroductionA1
Introduction
Pursuant to the provisions of Article L. 621-18-3 of the
French Monetary and Financial Code, amended by the Act
of 3 July 2008 and the ordinance of 22 January 2009, as
well as the provisions of Article L. 225-37 of the French
Commercial Code, amended by Ordinance 2009-80 of
22 January 2009—Article 7, the purpose of this document
is to report on the conditions for preparing and organising
the Board of Directors’ work, as well as on the internal
audit and risk management procedures implemented by
Le Groupe La Poste in 2013.
The Chairman asked the Group Audit and Risk Department
and the Group Finance Department to jointly take care of
the preparatory work required for the writing of this report,
based on the mapping of the risk management system
and the self-assessment of the maturity of internal audit
systems and their contribution to risk management within
the Group's main entities.
The necessary information was collected from the main
players of internal audit and risk management.
This report was presented to the Audit Committee on
18 February 2014 and approved by the La Poste Board of
Directors on 20 February 2014.
1 Corporate governance
1.1 Legal and regulatory framework
1.1.1 Policies and procedures
The Board’s by-laws specify the principal directors of
its operations and the procedures according to which it
performs its engagement, as well as those of its specialised
Committees. Lastly, it refers to the La Poste Director’s
Code, which specifies the rights, obligations and principles
applicable to members of La Poste’s Board of Directors.
This regulation was adopted by La Poste's Board of
Directors by deliberation on 10 February 2011. Regulating
procedures for the adoption and modification of the
regulation are provided for therein.
1.1.2 Code of corporate governance
At its meeting on 10 March 2011, the La Poste Board of
Directors decided to refer to the provisions of the Code
of Corporate Governance drawn up by Afep-Medef (1) for
purposes of preparing the report mentioned in Article
L. 225-37 of the French Commercial Code. Said Code of
Corporate Governance is compatible with the legislative and
regulatory provisions governing La Poste.
In accordance with legal and regulatory provisions
specific to La Poste, out of its 21 members, the Board of
Directors has 19 directors (12 of whom are shareholder
representatives and seven employee representatives)
who by definition cannot meet the independence criteria
applied by the Afep-Medef Code of Corporate Governance,
revised in June 2013. However, the Company believes that
each of the directors has skills and professional experience
useful to the Company, as well as complete freedom and
independence of judgement.
Moreover, some of the recommendations of the Afep-
Medef code are not applicable to La Poste as a result of
the specific laws and regulations under which it falls (Act
No.90-568 of 2 July 1990 as amended):
the dissociation of the duties of the Chairman of the
Board of Directors and the Chief Executive Officer:
Article 11 of the 2 July 1990 Act as amended, referred to
in Article 14 of the articles of association states that the
positions of Chairman and Chief Executive Officer may
be combined;
the terms of appointment and removal of the Chairman
and Chief Executive Officer: Article 10 of the Act of
26 July 1983 referred to in Article 14 of the articles of
association states that the Chairman and Chief Executive
Officer is appointed and removed by decree;
(1) The Afep/Medef code is available on their respective websites.
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Chairman's report on corporate government, internal control procedures and risk management in respect of 2013
Corporate governance
res 13
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the establishment of the Chairman and Chief Executive
Officer's remuneration (1): the decree dated 9 August
1953 states that the decision comes from the relevant
ministers and the decree dated 26 July 2012 defines a
ceiling;
representation within the Board of Directors of specific
categories of directors does not apply to La Poste: the
composition of the Board of Directors is fixed by the
Act of 26 July 1983 (Article 5) and the Act of 2 July 1990
(Article 10), the provisions of which are contained in
Article 13 of the articles of association;
the term of office for members of La Poste’s Board of
Directors is set at five years. The Board of Directors
members are all reappointed at the end of this term, for
which the procedures are specified in Article 11 of the
Act of 26 July 1983 and are referred to in Article 13 of the
articles of association;
Board members cannot hold shares personally as law
No.2010-123 dated 9 February 2010 lays down that the
share capital of La Poste shall be held by the French
government or by other publicly-owned legal entities
with the exception of share capital that may be held as
employee shareholding.
1.2 Composition and powers of the Board of Directors
1.2.1 Composition of the Board of Directors
La Poste’s Board of Directors comprises 21 members, in
accordance with Act 90-568 of 2 July 1990 as amended,
which relates to the organization of La Poste and France
Télécom’s public services, with Decree No.2010-191 dated
26 February 2010 as amended, which sets out La Poste’s
initial articles of association and includes various provisions
relating to La Poste, and with Article 13 of the Company’s
articles of association (2):
12 directors appointed by the General Meeting: at the
proposal of the French government and Caisse des
Dépôts et Consignations;
two directors appointed by Decree;
seven staff-elected directors.
As at 31 December 2013, the Board’s membership was as
follows:
Directors appointed by the General Meeting
At the proposal of the French government and Caisse des Dépôts et Consignations
Philippe Wahl, the Chairman and Chief Executive Officer
of La Poste (3)—designated by co-optation by the Board
of Directors on 1 August 2013, replacing Guillaume
Gaubert. The General Meeting on 15 October 2013
ratified his appointment;
At the proposal of the French government
Éric Delzant, inter-ministerial delegate for regional
planning and regional attractiveness—designated
by co-optat ion by the Board of D irectors on
26 September 2013, replacing Emmanuel Berthier.
The General Meeting on 15 October 2013 ratified his
appointment;
Laurence Franceschini, Director General for the
Media and Cultural Sectors, Ministry of Culture and
Communications;
Jean-Michel Hubert, Deputy Chairman of the Digital
Strategy Committee and a member of the Supervisory
Board for the future investments programme until
February 2013;
Philippe Lemoine, Chairman and Chief Executive Officer
of LaSer;
Françoise Malrieu, Chairperson of the Board of Directors
of Société de Financement de l’Économie Française;
Sophie Mantel, Head of the Department, assistant to
the Director of Budget was appointed via co-optation by
the Board of Directors on 26 September 2013, replacing
Jean-Paul Bailly. The General Meeting on 15 October
2013 ratified her appointment;
Christian Martin, Master of the Court of Auditors—
designated by co-optation by the Board of Directors on
24 January 2013, replacing Pascal Faure. The General
Meeting on 18 June 2013 ratified his appointment;
Antoine Saintoyant, Director of Investments for the
Government Investment Agency, Deputy Direction
in charge of "Services, Aeronautics, and Defence"—
(2) The appendix “Directors' biographies and terms of office” in the current report details the information concerning the members of the Board of Directors.
(3) Philippe Wahl was appointed, at the proposal of the French government, Chairman and Chief Executive Officer of Le Groupe La Poste, by Decree of the
Council of Ministers by the Chairman of the French Republic on 26 September 2013.
(1) Refer to chapter 15.1 of the registration document.
Registration document 2013 / LE GROUPE LA POSTE448
Chairman's report on corporate government, internal control procedures and risk management in respect of 2013Corporate governanceA1
designated by cogoptation by the Board of Directors on
22 April 2013, replacing Olivier Bourges. The General
Meeting on 18 June 2013 ratified his appointment.
At the proposal of Caisse des Dépôts et Consignations
Caisse des Dépôts et Consignations represented by
Jean-Pierre Jouyet, Chief Executive Officer of Caisse des
Dépôts et Consignations;
Odile Renaud-Basso, Deputy Managing Director of the
Caisse des Dépôts group and Director of Savings Funds—
designated by co-optation by the Board of Directors on
12 December 2013, replacing Lorraine Donnedieu de
Vabres-Tranié;
Franck Silvent, Director of "Finance, Strategy and
Equity Investments" of the Caisse des Dépôts group—
designated by co-optation by the Board of Directors on
22 April 2013, replacing Sabine Schimel. The General
Meeting on 18 June 2013 ratified his appointment.
Board members appointed by decree
Jacques Pélissard, representative of local authorities:
Chairman of the French Mayors Association and a
member of the Local Finance Committee;
Elyane Zarine, user representative: Chairman of
France’s General Organization of Consumers (Orgeco)
and Chairman of the Commission on Mediation and
Consumption.
Staff-elected directors
Régis Blanchot, Production Team Leader at the Greater
Paris financial centre, sponsored by the SUD trade union;
Florence Derouard, human resources management
agent at the Rouen centre for human resources,
sponsored by the SUD trade union;
Bernard Dupin, senior executive of La Poste and
member of the regional Economic and Social Council
of Languedoc-Roussillon, sponsored by the CGT trade
union;
Sylvie Féola, customer relations manager at the
Marseille financial centre, sponsored by the CGT trade
union;
Michel Lersy, level-one technical and management agent
at an Industrial Mail Platform of Lorraine, sponsored by
the CGT trade union;
Marie-Pierre Liboutet, Communications Director in the
Limousin Mail Department, sponsored by the CFDT trade
union;
Michel Pesnel, senior executive for the General Secretary
at the Head office, sponsored by the FO trade union.
1.2.2 Powers of the Board of Directors
As specified in Article 1 of the by-laws, the Board lays down
and directs the general policy of Le Groupe La Poste. In this
regard, the Board:
lays down the Group’s broad strategic outlines and is
consulted on all other major Group transactions;
examines, at the same time as the separate financial
statements of La Poste and the consolidated financial
statements, the documents concerning forward-looking
management, the results regarding the financial and
service quality goals set; reviews and approves the
Group’s annual budget and main financial management
goals;
receives quarterly reports on the Group’s business
activities and operational results, and a semi-annual
report on the Group’s top-level subsidiaries, as well as
regular updates on its financial position and material
commitments;
is consulted for prior approval regarding major
Group f inancial t ransact ions (e.g. long-term
borrowings, sureties, endorsements or guarantees,
asset securitisation, debt or financial risk hedging
management activities and a policy of dividend
distribution) as well as Group acquisitions and disposals,
and new strategic direction of La Poste's activity and one
of its subsidiaries, all major internal capital expenditure
programmes and any capital increases involving
subsidiaries greater than €30 million;
is notified of internal audit procedures established by the
Group, significant risks which would be exposed by these
controls and risk management policies being considered
or put in place;
ensures the truth and accuracy of the financial
statements and checks the quality of internal accounting
controls and of the financial information disclosed or
made available to the public;
carries out an annual assessment on its internal
operations.
1.2.3 Powers of the Chairman and Chief Executive Officer
In accordance with the resolution of the La Poste's
Board of Directors of 26 September 2013, the Chairman
and Chief Executive Officer is fully empowered to act in
all circumstances on the Company’s behalf, within the
corporate purpose and subject to the powers of the General
Meeting and those reserved for the Board of Directors
by law, La Poste’s articles of association, as well as the
Board’s by-laws (Article 1.4).
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Chairman's report on corporate government, internal control procedures and risk management in respect of 2013
Corporate governance
res 13
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Consequently, the Chairman and Chief Executive Officer
must obtain the prior authorization of the Board of Directors
for the following transactions:
acquisitions, equity investments, asset disposals, and
capital restructuring: any transaction (including any
material change thereto) involving acquisitions, equity
investments, asset disposals (including financial,
excluding day-to-day treasury management), capital
restructuring (in particular mergers, spin-offs or asset
transfers, with the exception of Le Groupe La Poste
internal transactions) for a unit amount of over
€30 million, this threshold including, as the case may be,
the price, the net debt of the target, the amount of any
purchase or subscription guarantee made by La Poste
and any off-balance sheet commitments given;
any transaction involving strategic or capitalistic
partnership, of disposal of issue of securities which give
access to capital: any transaction (including any material
change thereto) involving a business combination,
disposal or issue of equity securities or financial
instruments convertible to share capital carried out by
La Poste (or to which La Poste is party), for a unit amount
of over €30 million, this threshold including, as the case
may be, the price, the net debt of the target, the amount
of any purchase or subscription guarantee made by
La Poste and any off-balance sheet commitments given;
any strategic partnership with average annual revenue
over the time frame of its business plan of more than
€30 million (including the renewal of any partnership);
investment or divestment transactions: any capital
expenditure or divestment transaction (including any
material change thereto) not covered in the above
paragraph, carried out by La Poste (or to which La Poste
is party) for a unit amount of over €200 million, this
threshold including, as the case may be, any given off-
balance sheet commitments;
debt management or treasury management: any
transaction (including any material change thereto)
involving debt, cash or hedging management (excluding
day-to-day management) carried out by La Poste for a
unit amount of over €700 million per transaction;
securitisation: any transaction (including any material
change thereto) involving the securitisation of financial
or commercial assets carried out by La Poste for a unit
amount of over €100 million per transaction;
new strategic direction: any new direction for La Poste’s
business or a change in its object, or any material
transaction reflecting a new direction for the business
or a strategic refocusing of La Poste;
bringing legal proceedings or reaching a settlement
agreement: any decision to bring legal (including
arbitration), regulatory or administrative proceedings
by La Poste or to enter into a settlement agreement or
arbitration agreement with respect to legal, regulatory
or administrative proceedings to which La Poste is party,
for a unit amount of over €50 million, it being added that
where a number of such actions are based on the same
or a related event, this threshold is assessed based on
all relevant actions;
offering of financial securities to the public: any decision
to carry out a public offering of financial instruments
issued by La Poste outside programmes that were
already authorised as part of the budget approval by the
Board of Directors;
change in accounting practices: any material change
or planned material change to Le Groupe La Poste’s
accounting practices.
In addition, the Chairman and Chief Executive Officer is
expressly authorised to provide bonds, guarantees and
endorsements binding La Poste up to an overall annual
limit excluding tax set by the Board of Directors, and a
maximum unit amount excluding tax of €75 million.
The Chairman and Chief Executive Officer is authorised to
delegate these powers.
1.3 Committees of the Board of Directors
In accordance with article 16 of the Articles of association,
four specialised Committees were established within the
Board: their tasks are specified in their respective by-laws.
These Committees are tasked with examining and preparing
certain projects before plenary sessions, either adding them
to the agenda or mentioning them in the report on work
carried out by their Chairman.
The government representative and the head of the French
government’s economic and financial control unit can
attend the meetings of each Committee.
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Chairman's report on corporate government, internal control procedures and risk management in respect of 2013Corporate governanceA1
1.3.1 Audit Committee
Role
The duties of the Audit Committee, established in January
2001, are to assist the Board with the analysis of the
financial statements and key financial information, the
mapping of major risks, the policy to manage these risks
and the internal audit systems for La Poste and the Group.
Membership
On 31 December 2013, the Audit Committee is presided
over by Mr Silvent and includes Mr Lersy, Ms Mantel,
Ms Renaud-Basso, and Mr Saintoyant.
The by-laws of the Audit Committee exclude the presence
of the Chairman and Chief Executive Officer of La Poste.
The qualifications of the Audit Committee members are
listed in the appendix "Biographies and mandates of
directors" of this report.
The composition of the Group's Audit Committee reflects
the particularities of the composition of the Board of
Directors of Act No.90-568 of 2 July 1990, as amended,
which do not allow compliance with the recommendations
of the Afep-Medef code. However, the Le Groupe La Poste
believes that, although the Audit Committee does not
include independent directors, its present composition does
not harm the powers of this Committee and its ability to
perform its duties.
Activity
The Audit Committee met five times during the period under
review; the average attendance of directors was 84%.
During 2013, in addition to recurring subjects such as
reviewing the annual and interim financial statements,
mapping of the Group's major risks, and scheduling audits,
the Committee notably reviewed the internal audit and risk
control processes of the Mail Business Line and La Banque
Postale, as well as its revenue model and its allocation of
equity capital.
1.3.2 Strategy and Investment Committee
Role
The duties of the Strategic Committee, established in
February 2004, are to prepare the work of the Board of
Directors with regard to setting strategic development
goals of La Poste and its Group in France and abroad,
proposed strategic agreements and partnership monitoring,
planned major asset acquisitions or disposals, the setting
up of subsidiaries, the acquisition or disposal of equity
investments exceeding €30 million, the long-term business
plan and the monitoring of the broad outlines of the public
service contract entered into with the French government.
Membership
On 31 December 2013, this Committee is presided over
by Ms Malrieu and includes Mr Blanchot, Mr Dupin,
Ms Liboutet, Mr Pesnel, Ms Renaud-Basso, Mr Saintoyant,
and Mr Silvent.
Activity
The Committee met four times during the period under
review; the average attendance of directors was 84%.
In 2013, the Committee essentially worked on the Group's
strategic project, the business contract, the change in
La Banque Postale's equity capital, the international
development of GeoPost and acquisition projects.
1.3.3 Quality and Sustainable Development Committee
Role
Originally named the “Client Quality” Committee in
February 2004, this Committee, helps the Board of Directors
to analyse the quality of services provided by La Poste
and the Group’s companies to their clients, sustainable
development, and well-being in the workplace.
The Board of Directors may also ask the Committee to
carry out any other work relating to quality and sustainable
development; the Committee may even suggest that the
Board consult it on any specific issue that it considers
necessary or relevant.
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Membership
On 31 December 2013, this Committee is presided over by
Mr Hubert and includes Ms Derouard, Mr Martin, Ms Féola,
Ms Renaud-Basso, Mr Silvent, and Ms Zarine.
Activity
The Quality and Sustainable Development Committee
met six times during the period under review; the average
attendance of directors was 79%.
During 2013, the Committee examined the service-oriented
attitude, the systems to measure quality delivered and
perceived quality, the implementation of the agreement
on Quality of life at work, the strategy on the subject of
corporate social responsibility and La Poste's ethics
programme.
1.3.4 Remuneration and Governance Committee
Role
The Committee, created in April 2010, with a view to
preparing the work of the Board of Directors, is tasked
with the following: make recommendations regarding the
remuneration of La Poste’s corporate officers, give an
opinion on any proposals about the general principles of
base salary and additional remuneration of the executive
directors of La Poste and its main subsidiaries. It also gives
an opinion on any planned capital increase reserved for
employees or any free share grant pursuant to Articles 32
and 33 of Act 90-568 of 2 July 1990 as amended, relating to
the organization of the public service provided by La Poste
and France Télécom, and lastly, it coordinates the annual
appraisal of the Board of Directors.
The Chairman of the Board of Directors informs the
Committee of the appointment, remuneration and planned
replacement of the executives of La Poste and its main
subsidiaries. Where appropriate, the Committee passes on
its observations to the Board of Directors.
The procedure for setting the remuneration of the Chairman
and Chief Executive Officer is subject to Article 3 of Decree
No.53-707 of 9 August 1953 regarding gouvernment control
of public sector enterprises.
Membership
On 31 December 2013, this Committee is presided over by
Mr Lemoine and includes Mr Jouyet, Ms Renaud-Basso and
Mr Saintoyant.
Activity
The Remuneration and Governance Committee met four
times in the year under review; the average attendance of
directors was 75%.
In 2013, the Committee was principally dedicated to its
recurrent assignments: remuneration of the Chairman and
Chief Executive Officer, directors' fees and evaluation of the
Board of Directors' work.
1.4 Activities of the Board of Directors
The Board of Directors meets as often as Company interests
require, and at least six times a year. Furthermore, one
third of the members of the Board of Directors may call a
meeting by setting an agenda if no meeting has been held
for more than two months.
Except in emergencies, a meeting notice must be sent out
at least ten days prior to the scheduled date of the meeting.
The necessary information is provided to directors at the
same time as the meeting notice, or at least three days
prior to the date of the Board meeting.
Minutes are drafted for each meeting and submitted to the
Board for approval.
In 2013, the Board met 11 times. Directors’ average
attendance at these meetings was 84%.
In particular, the Board of Directors reviewed and authorised
the following:
the business contract;
the 2014-2016 local postal coverage agreement;
the increase in La Banque Postale's equity capital;
acquisition projects (La Banque Postale, GeoPost);
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the collection of dividends from CNP-Assurances in
shares;
the 2014 budget.
In addition, on 1 August, Board members proposed the
appointment of Philippe Wahl as Chairman of the Board
of Directors.
The Board of Directors also reviewed the corporate balance
sheet, the business progress of first-level subsidiaries, and
the annual report on the management of real estate assets,
as well as the current report. The chairs of the specialised
Committees presented the Board with the synopsis of work
they completed.
Lastly, the Board met for a strategic meeting on 24 January
2013 before adopting a preparatory document for the
strategic plan ("strategic project, financial outlook and
future in-depth projects").
On 28 November 2013, a new strategic meeting was
organised in order to examine La Poste's digital transition,
new services delivered by postmen, La Banque Postale's
challenges with equity capital, the future of the Group's
public service missions and the international development
of GeoPost. On 16 January 2014, a last strategic meeting
was held before the Board of Directors adopted the strategic
plan on 28 January 2014.
1.5 Assessment of the Board of Directors
Once a year since 2006, the Board of Directors has devoted
a part of its agenda to assessing its internal practices, with
particular regard to its by-laws and to any improvements
that could be made. From 2006 to 2009, this annual
appraisal was led by Jean-Michel Hubert; the process is
now led by the Remuneration and Governance Committee
and its Chairman, who presents a summary to the Board
and suggests areas of improvement. La Poste has also
decided to carry out this assessment once every three years
with the help of an external firm.
The assessment of the Board's practices for 2013 and those
of its specialised Committees was therefore conducted
through interviews. The details of this assessment are given
in chapter 16.3 of the registration document.
1.6 Directors
1.6.1 Independence and ethics
The Board members' Code, adopted in December 2004 and
included with each version of the policies and procedures
that the Board of Directors has adopted since, specifies
the rights and principles with which Board members must
comply.
Article 6.1 of this Code specifies that directors must
undertake, under all circumstances, to remain independent
when analysing, judging, making decisions and taking
actions, and to refuse all direct or indirect pressure that
could have an influence on them.
The position of a director representing employees
is incompatible with any other position involving the
representation of employee interests within La Poste or its
subsidiaries.
1.6.2 Conflicts of interest within administrative bodies and Executive Management (1)
To the best of La Poste’s knowledge, and on the date of
approval of this document, there were no potential conflicts
of interest at La Poste between the duties of the corporate
officers and members of the Executive Committee, and their
private interests or other duties.
To the best of La Poste’s knowledge, there are no
arrangements or agreements between shareholders,
customers, suppliers or any other parties under which a
member of the Board of Directors has been appointed to
this position.
(1) Refer to chapter 14.3 of the registration document.
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1.6.3 Duties
The rights and duties of directors, as set out in Articles 7
to 13 of the Act of 26 July 1983 on the democratisation of
the public sector, apply to members of La Poste Board of
Directors.
The by-laws of the Board of Directors note that its members
are subject to the rights and obligations detailed in the
Director’s Code, such as the obligation regarding laws
and regulations and social interest, the degree of personal
involvement of directors during their term, the duty to
express questions and opinions resulting from exercise of
the mandate, the commitment made to avoid all potential
conflicts of interest, as well as the duties with respect to the
confidential nature of information.
1.6.4 Information and training
The Chairman and CEO regularly informs the Board
members of the major facts and significant events
regarding La Poste that have occurred between meetings
of the Board of Directors, allowing them to fully perform
their engagement.
In conformity with Article 6 of the by-laws, each director is
given, upon taking office, a welcome folder that has been
updated according to the modifications.
Each director may furthermore benefit from additional
training regarding the specific features of the Group, its
Business Lines and its sectors of activity.
1.6.5 Remuneration
The Chairman and Chief Executive Officer of La Poste will
not receive directors' fees for his position as a director of
La Poste.
The rules for distributing directors' fees and the amounts
paid for 2013 are set out in Chapter 15.1.2.3 and 16.4.4 of
the registration document.
1.7 General Meetings
1.7.1 Access to, participation in and voting at General Meetings
On proof of identity and share ownership, all shareholders
have the right to attend General Meetings and take part
in discussions under applicable legal and regulatory
conditions.
Shareholders may authorise their spouse or another
shareholder to represent them at a General Meeting.
They may also vote by letter post under the conditions as
provided for by law. The Company must receive the voting
form no later than three days before the date of the General
Meeting.
The authorizations and forms to vote by mail may be sent
electronically if signed in accordance with applicable legal
and regulatory provisions.
1.7.2 Notification of General Meetings
General Meetings are called by the Board of Directors or,
failing this, the Statutory Auditors or any authorised person
in accordance with applicable laws and regulations. They
are held at the head office or any other place shown in the
notice.
They may be held by video conference or other means
of telecommunication that enable shareholders to be
identified in accordance with applicable legal and regulatory
provisions. In this case, individuals using these means are
deemed present when calculating the quorum and majority
of shareholders.
The notice is sent at least two weeks before the date of the
meeting. If the meeting cannot be held with the necessary
quorum, a second meeting and if necessary, an extension
to the second meeting will be called with at least 10 days’
notice, under the same conditions as the first.
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1.7.3 Agenda and conduct of General Meetings
The meeting agenda appears on the notice and is approved
by the author. The meeting may only discuss issues on the
agenda.
An attendance register is kept at each meeting, containing
all legally required information.
Meetings are chaired by the Chairman and Chief Executive
Officer or, in his/her absence, a director authorised to do
so by the Board. Failing this, the shareholders elect their
own Chairman.
The positions of scrutiners are held by the two members of
the meeting, present and accepting the role, who personally
or as proxies receive the highest number of votes.
The Committee, comprising the Chairman and two
scrutineers, appoints the secretary who does not have to
be a shareholder.
The role of Committee members is to check, certify and
sign the attendance register, ensure debates run smoothly,
rule on any incidents, supervise voting and ensure voting is
lawful, and draw up the minutes.
The minutes are produced and copies of decisions are
certified and issued in accordance with the law.
1.7.4 Ordinary General Meeting
The Ordinary General Meeting is called to make all
decisions that do not alter the articles of association. It is
held at least once a year, within six months of each financial
year-end, to approve the annual financial statements. A
legal ruling may grant an extension to this deadline.
When first called, its decisions will only be valid if those
shareholders present or represented or who have voted by
mail, hold at least one fifth of the shares to which voting
rights are attached. If a second meeting is held, no quorum
is required. Decisions are made on the basis of a majority
of votes cast by those shareholders present, represented or
having voted by mail.
1.7.5 Extraordinary General Meeting
The Extraordinary General Meeting alone is authorised to
amend any of the provisions of the articles of association.
However, it may not increase shareholders’ commitments,
except through transactions resulting from a lawful
grouping of shares.
Subject to any legal provisions to the contrary, decisions will
only be valid if those shareholders present or represented,
or having voted by mail, hold at least one quarter of the
shares to which voting rights are attached at the first
meeting, or one fifth at the second. Without the latter
quorum, the second meeting may be adjourned for up to
two months.
Subject to any legal provisions to the contrary, decisions
require a two-thirds majority of votes cast by those
shareholders present, represented or having voted by letter
post.
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2 Internal control and risk management procedures
Throughout 2013, Le Groupe La Poste strengthened and expanded its work on internal audit and risk management across
all its operations.
2.1 Definition and goals of internal audit and risk management
2.1.1 Reference documents
Le Groupe La Poste employs the COSO 2 (Committee Of
Sponsoring Organizations of the Treadway Commission),
international reference framework for all its operations, for
the purposes of implementing its risk management system,
and draws on the reference framework of AMF (the French
Financial Markets Authority).
In particular, it builds into its approach, the definition of
internal audit and risk management of the reference
framework as amended in July 2010 by the AMF, according
to which risk management is a process implemented by
the Board of Directors, the General Management and all
the organization’s employees. It is taken into account when
drawing up a strategy and in all business activities.
A Group Risk Management Charter, presented to the Audit
Committee of the Board of Directors and signed by the
Chairman, applies to the whole Group as from 2010.
The aim of the risk management process described in the
Charter is to ensure:
respect for the Group’s corporate object and its missions;
legal and regulatory compliance;
application of instructions and guidance provided by
executive and decision-making bodies;
the smooth running of internal procedures, in particular
those helping to safeguard Group assets;
performance and optimisation of operations;
reliability of financial and non-financial information.
The Company’s aims, which the internal audit and risk
management system endeavours to secure, are both
strategic and operational and concern the reliability of
reporting and compliance with laws and regulations.
The Group’s internal audit system includes a series of
resources, approaches, procedures and actions that help
to control its activities, ensure the effectiveness of its
operations and the efficient use of resources, and identify
risks.
In line with AMF recommendations, the risk management
system provides for an organizational framework with a
specific structure. This is a process comprising three steps:
risk identification, risk analysis, and risk treatment. It is an
ongoing process.
La Banque Postale, a wholly-owned subsidiary of La Poste,
is also subject to CRBF Regulation 97-02 as amended,
and the recommendations of the Basel Committee. When
acting in the name and on behalf of La Banque Postale,
La Poste Retail Brand must ensure that it complies with
this regulation.
2.1.2 Scope
The Group’s internal audit and risk management systems
apply to the parent company, the business conducted across
all Retail Brand outlets (including local postal branches and
Poste Relais outlets), the outsourced activities of La Banque
Postale as well as wholly-owned subsidiaries, or over which
it has majority control and which are fully consolidated.
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2.1.3 Limits of risk management
Risk management is designed to identify events that could
affect the organization or achievement of the Company’s
targets, and to manage risks within its maximum tolerance
of risk. Its aim is to offer Executive Management and
the Board of Directors reasonable assurance that the
organization’s targets will be met. Furthermore, the
internal audit cannot provide an absolute guarantee that
the Company’s targets will be met.
2.2 The Group’s permanent internal audit and risk management systems
2.2.1 General governance principles
The goal of risk management is to ensure, to the extent
possible, that risks within the Group and its various entities
are completely and consistently identified, assessed and
controlled.
Each aspect of internal audit and risk management is
interdependent, helping to cover identified risks—as with
the Group’s policy for insurance.
The Group’s Executive Management relies on the Group’s
Risk Management Department, which reports to the
head of Group risk audit, in order to implement the risk
management system, including permanent internal audit.
The purpose of this Department is to support and
consolidate risk management activities within the
Group; risk management being considered, in line with
the “COSO 2” and AMF reference frameworks, to be a
combination of internal audit and risk management. It
notably maps the Group’s major risks, in relation with the
Departments responsible for risk within the businesses,
subsidiaries and cross-functional areas, coordinates the
work of the Group Risk Committee, as well as internal audit
and risk management activities, and manages the Group’s
policy for insurance.
The Group’s general policy for insurance is based on the
following principles:
pooling of risk: wherever possible, a Group policy is
taken out to provide each entity or subsidiary, regardless
of their financial resources, with optimum coverage
commensurate with its own risks, at minimum cost;
insuring in priority the intensity risk: in general,
frequency risk, for which the cost of insurance would be
too high (deductible, holding, etc.), is kept in-house given
La Poste’s financial resources.
The business and functional Departments, which have
been responsible for identifying and controlling their
specific risks since 2003, have established their own units
for supervising and developing internal audits (principles
and guidelines regarding the management of Group risks—
statement of guidelines of 14 May 2003).
Three bodies aim to organise and plan the Group’s risk
management system:
the Audit Committee of La Poste Board of Directors, whose tasks include ensuring the effectiveness of
internal audit and risk management;
the Group’s Risk Board, a function provided by the
Group’s Executive Committee. Its role is to make all
decisions relating to the Group’s major risks and to the
risks shared across businesses which it monitors;
the Group’s Risk Committee, presided over by the
Executive Officer and led by the Risk Management
Department, is comprised of the Group’s Audit and
Risk Director, the Group Risk Management Director,
the Directors of Risk Management in the Business
Lines and Poste Immo, the Group Director of Taxation
and Accounting, the Director of Human Resources and
Employee Relations, the Group Director of Legal Affairs
and Compliance, the Group Director of Information
Systems and the Group Director of General Security.
It met four times in 2013, mainly to review the Group’s
mapping of major risks as well as its mapping of
sector risks for each Business Line, the main areas
of operations and the monitoring of internal audit
assignments. It is responsible for ensuring consistent
risk management across the Group and prepares the
work of the Executive Committee in this area (the Group’s
Risk Board).
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2.2.2 Internal control system
The Group’s internal audit unit, which reports to the Group’s
Risk Department, ensures adherence to the Group’s Risk
Management Charter. For this purpose, it prepares a map
of the risk management systems for Le Groupe La Poste, in
order to ensure they comply with the Charter.
This Department works towards strengthening internal
audit systems by relying, in particular, on recommendations
from the Audit Department.
The Group’s Internal Control Department contributes to
identifying risks.
It provides support and assistance to Departments, in
particular in order to secure their internal environment. It
distributes applications and methods, in line with market
best practices and provides professional documentation on
risk management, organises its sector and contributes to
its training.
Finally, it coordinates the monitoring of indispensable
oversight points defined by the Risk Committee and actions
aimed at ensuring the coherence of the systems and making
them more efficient.
At its meeting of 15 April 2010, the Board of Directors
of La Poste voted to create the La Poste Purchasing
Committee (CALP), an advisory body positioned alongside
the Chairman and CEO.
This new body issues opinions on the regularity and
economic results of purchasing, including contracts entered
into between the parent company and its subsidiaries. It
ensures the proper application of La Poste's "Rules of
purchase" that were approved by the Board of Directors
and is subject to an update in 2011. These rules explain the
terms of the Ordinance No.2005-649 of 6 June 2005 and
Decree No.2005-1308 of 20 October 2005.
The CALP is presided over by a Master of the Court of
Auditors and is composed of two external experts to
Le Groupe La Poste, chosen for their competences in the
area of purchases, and three other internal members of
La Poste.
The referral of the commission is systematic for any
financial transaction greater than €1.5 million for
intellectual services and €10 million for other purchasing
categories. In addition, the Committee examines 10
contracts involving amounts lower than these thresholds
every year, after a random draw by the Central Purchasing
Department.
The CALP realises its activity once per year by presenting a
progress report before La Poste's Board of Directors.
2.2.3 The risk management and insurance system
The mapping of the Group’s major risks, updated annually,
splits risks into two major categories:
shared major risks, which are namely Group-wide
risks potentially affecting all Business Lines without
distinction, or risks shared across a number of Business
Lines. They are identified by the Group Risk Department
in relation with the Group Audit Department and the
other corporate Departments, in particular concerning
risks relating to information systems, human resources,
financial and legal affairs, with the support of the
Group Information Systems Department, the Human
Resources and Employee Relations Department, the
Group Finance Department, the Group Legal Affairs
and Compliance Department, and the Group’s General
Security Department;
business-specific major risks, namely risks that may
threaten the Group’s strategy (and not just the strategy
of a particular Business Line) and its overall financial
stability. Their census results from an analysis between
the management of the audit and the risks of the Group
and the managers of Business Lines.
Risk mapping gives rise to a risk management plan. A risk
owner, who is a member of the executive Committee and
responsible for drafting an action plan or making a specific
risk supervision proposal, is assigned to each identified
risk. The risk owner looks at areas where risk is incurred
and relies on related master plans drawn up at a corporate
or Business Line level. The risk management plans
incorporate, in addition to appropriate individual actions,
internal audit actions and, where relevant, insurance
coverage.
The main risk factors are described in Chapter 9 of the
registration document.
The Group’s Insurance Department, bound to the
management of Group risks, is in charge of coordinating
insurance policies upon identifying insurable risks and
claims management. It works with the Group’s General
Security Department and the Business Lines on the anti-
fraud system put in place to combat malicious acts in
connection with insurance policies.
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2.2.4 Dissemination security
In order to disseminate information, a system used by
all, from executive and strategic managers (Management
Committee, intranet sites and electronic letters) to all
employees (Internal review, “time-space communication”),
allows different news stories to be circulated.
Furthermore, procedures for approving, recording and
spreading professional information are common to all
La Poste entities. In particular, the spreading of information
relies heavily on electronic media adapted to each audience,
helping to apply Company policies and control operations.
The risk management correspondents network is led by the
Group’s Risks Department, which organises and coordinates
inter-business and inter-area exchanges, in particular,
to share methods and practices, and thereby ensure a
consistent framework. Professional documentation on
internal audit at Group level is disseminated through an
Intranet that is accessible to everyone.
2.2.5 Control of systems
The Board of Directors supervises the system, and is
notified by its Audit Committee of the major risks faced by
the Group, and of any increased severity.
The role of the Group Risk Department is to provide
executive and decision-making bodies at La Poste with
an overview of the Group’s major risks and how they are
controlled.
It organises an annual campaign allowing the Business
Lines to describe their internal audit and risk management
system and to formalise their risk management objectives.
This campaign allows the risk management systems to be
mapped at Group level.
The Group’s Risk Department organises a self-assessment
campaign each year on the progress of this internal audit
system, and its contribution to risk management for the
Group as whole.
Lastly, the effectiveness of the system as a whole is
periodically independently audited by the Group’s various
internal audit units, and in particular by the Group Audit
Department.
2.2.6 Summary and outlook
Risk management, internal audit and the insurance
policy contribute to ensuring that the Group achieves its
objectives.
The mapping of major risks was updated in 2013 for 2014.
Plans to control risks relating to risk mapping submitted
to the Audit Committee in December 2012, were presented
at the meeting of the Audit Committee dedicated to risk
management in June 2013. At the same meeting, the
assessment of internal audit, including in particular the
mapping of risk management systems on the "organization
and resources" section, was presented to the Committee.
A self-assessment of the status of the internal audit system
was carried out in December 2013 on all Business Lines
and corporate Departments covering the major fields of
activity, in order to help improve the internal audit system.
It consists of a single questionnaire comprising two main
parts. The first is devoted to the system of permanent
monitoring (operation and coverage of the overall system
of the Group as well as one dedicated to accounting and
finance). The second part includes points of vigilance
determined by the Risk Committee (competition, Quality of
life at work, fraud, ethics, etc.).
In accounting and finance, the approach "Risks and Internal
Audits within the Finance Function" (RECIF) was established
in 2013. The Coordination Committee of risk management
of financing is the coordinating body dedicated to the
control of the approach. Its work focuses on the actions
to be implemented under the points of vigilance and co-
managed by the Finance Department and the Group's Risk
Management Department in close relation to all the players
from the financial sector and that of risk management
of Business Lines and subsidiaries as well as sectors
upstream of the financial sphere.
The project of implementing a reference guide of an internal
audit framework on points of vigilance affecting the Group
was initiated by work on some of the business processes
(purchasing, claims and legal disputes) and the realisation
of a prototype in order to link a panel of members of the
risk management network to co-build the final version of
the application and the terms of its activities.
The renewal and optimisation programme of the
Group's insurance policies was pursued, including the
generalisation of the procedure for selecting brokers and
insurers for all branches of risk, with the establishment of
four pools of brokers.
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With respect to the professionalism of the system,
there were new modules for risk management training
curriculum on this theme, and actions were carried out with
managerial lines to raise awareness. Work for managing
the professional documentation of corporate entities and
the redesign project, optimisation and enhancement of the
Group's information system were undertaken.
The Service Agreement Governance Department, which
reports to the Group’s Risk Department, monitored the
contractual system governing the provision of inter-
company services and performed an annual review for 2012,
which was sent to the Group’s Executive Committee in April
2013.
In 2013, as with previous years, Partnership Committee
meetings were held, attended by the various stakeholders
of the main provisions of contracts between Business Lines.
These Partnership Committees ensured that the signatories
of these contracts were abiding by the commercial,
operational, technical and financial commitments made
under the contract documents, and decided on any
corrective actions necessary for the performance of the
agreements. These Committees are likewise permitted to
define the inter-Business Line cooperation outlook for 2014
in line with the strategic projects of each party.
The contractual documents (framework agreements,
service agreements) that were renegotiated in 2013, were
based on the reference guide to best practices that was
updated and distributed in September 2011.
The reference guide to professional ethics, annexed to
La Poste's by-laws, was mostly distributed in person to all
Group employees: its distribution, initiated in December
2011, continued in 2012 and was completed in 2013. This
reference guide is available online at the Intranet site of the
La Poste (in French and English) and the corporate website
of La Poste for external stakeholders.
The Ethics Committee, chaired by the Group’s executive
officer, is tasked with ensuring the governance of the
La Poste ethics system. It met twice in 2013 in order to
primarily review the progress of the deployment of its
system, the results of the first gauging of the climate of
ethics and the action plan for the prevention of corruption.
These Committees also invite ethics officers of large
companies to exchange the best practices in the field.
In order to strengthen the ethical culture within the
Group, the programme to raise awareness of the system,
which includes information on actions, communication
and training, was completed in 2013 with a new internal
publication, awareness of ethical issues being broadcast on
all internal media and the design of a guide for the swearing
in of La Poste being launched in anticipation of an early
2014 broadcast.
In 2014, the Group will renew its objective to improve
the efficiency of its risk management plans, by boosting
synergies and making additional risk management
improvements through internal audits and insurance.
The Group Risk Department will modernise some
components of the information system that will enable its
Departments to carry out their duties harmoniously with
their correspondents and internal clients.
The period of prototyping the reference guide of the Group's
internal audit will continue for the first six months of the
year before studying the best industrialisation scenarios
while integrating new processes into its content.
As far as training is concerned, focus will be placed on
educating managers, including in particular the redesign
of training of senior Directors newly appointed or promoted.
The interest to invest in distance training solutions will also
be studied.
The Audit Committee of the La Poste Board of Directors will
meet in June 2014 to review the operational efficiency of the
risk management system. It will meet again in December
to examine the 2015 update of the mapping of major risks.
Finally, the Group will establish its second "Ethics and
Conduct" annual report, the presentation of which is
scheduled before the Group Executive Committee and Board
of Directors. In 2014, the Group will continue to develop and
reinforce the main actions carried out in the field of ethics
and conduct.
The ethics division will also accompany the development of
a plan for the prevention of corruption in partnership with
Business Lines and corporate directorates that are party
to this issue.
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2.3 Internal control and risk management systems concerning the Group’s accounting and financial information
2.3.1 General supervisory and governance principles for the accounting and finance function
The Group’s Finance Department is in charge of promoting,
in its field, the culture, values and image of the Group, in
particular by coordinating the financial area, defining a
strategy and implementing the accounting, fiscal and
financial policy and to ensure that the Group’s follows its
financial course.
It contributes directly to business development, in particular
by providing accounting and tax advice to the Business
Lines, ensures compliance with legal and regulatory
requirements and contributes to the management of major
risks of the financial area for the Group, in particular by
ensuring that the regulatory framework is applied.
Within the Group’s Finance Department:
the establishment of accounting, tax and financial
information of Le Groupe La Poste is the responsibility
of the Group’s Accounting and Tax Department, which
notably oversees compliance with laws, regulations
and norms. Internal control procedures are also
implemented in the Business Lines and sub-groups as
part of first and second level controls intended to ensure
the reliability of the accounting and financial information
produced;
the Group’s Financial Control Department provides the
financial coordination for the Group, notably covering
financial planning and performance monitoring;
the Treasury and Financing Department provides the
Group’s cash management, simultaneously guaranteeing
it daily liquidity and long-term financial resources. This
Department is organised around a traditional division of
tasks between front office and back office services, which
ensures the security of financial transactions as well as
a “book of limits” that limits the risks taken on these
transactions, particularly in terms of the cost of debt and
the type of investments;
the Financial Information System Coordination
Department defines the governance and provides
supervisory services in this area, in connection with the
Business Lines and the Group’s Information Systems
Department, and manages the organizational and
financial frameworks of the Group;
the Financial Communications Department oversees
the Group’s compliance with its obligations as concerns
financial disclosure;
the General Secretariat Financial Officer accompanies
the management as a whole in tasks related to daily
operations, primarily human resources, ensures its
cross-functional missions, is responsible for the internal
communication of the CFO and represents management
in relations with the Group Audit and Risk Department.
2.3.2 Internal control and risk management procedures concerning the reliability the Group’s accounting and financial information
2.3.2.1 Group financial statements
Accounting principles and standards
The corporate and consolidated financial statements are
prepared by the Group’s Accounting and Tax Department
on the basis of the financial statements that are prepared
locally within each entity (Business Lines and subsidiaries)
and adjusted in line with Group accounting standards.
This Department also determines the consolidated Group
profit and prepares all the tax returns of the La Poste tax
group.
Each interim and annual closing gives rise to the
preparation of a detailed schedule and work plan,
documented via the audit and consolidation instructions
sent out to the subsidiaries and Business Lines. For interim
and annual closings, packages enabling an analytical
review of the accounting and financial information are
prepared at both the holding company level and at the level
of the parent company’s Businesse Lines. The Business
Lines and subsidiaries use consolidation software with a
standard financial statement format based on the Group’s
accounting principles manual. Intercompany transactions
are reconciled using a special system.
With regard to controls, the Group’s Tax and Accounting
Department analyses the difficulties encountered during
the production phase of the corporate and consolidated
financial statements in order to steadily improve the process
of producing and analysing the financial statements.
The Group’s Accounting Committee, comprised of all of
the accounting directors from the Business Lines and
sub-groups (holding companies), as well as La Poste’s
Accounting Committee, on which in particular the
accounting production directors from the Business Lines
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participate, meet monthly and quarterly respectively to
ensure the management and quality of separate and
consolidated financial information.
Internal quality control of accounting and risk management within the Group
The internal audit processes implemented by the Group’s
Tax and Accounting Department are intended to promote
the following objectives:
Company accounting principles and IFRS are known
by all those involved in producing the separate and
consolidated financial statements;
Group Executive Management ensures that they are fully
aware of all major options. The difficulties of applying
principles are thought through in advance so that they
can be applied without problems;
accounting and consolidation systems work properly
to ensure proper implementation of consolidation
procedures;
separate financial statements are adjusted to IFRS
ensuring that restatements are accurate;
all intercompany transactions are eliminated in the
Group financial statements;
all financial data necessary to establish and analyse
consolidated financial statements are accurately
provided in the consolidation system within the deadlines
set by the Finance Department;
the separate and consolidated financial statements are
properly supported and explained, backed by an audit
trail;
the consolidation system processes data ensuring
a reliable and complete company and consolidated
package can be establ ished within the Group
management’s deadlines;
the compilation of consolidation system data and
various information regarding operations in the period
allows fair and relevant reporting in order to present the
various components of the Group’s governance within
its deadlines.
Internal controls of accounting processes are largely
based on a detailed analysis of risks and formal processes
through detailed and explanatory closure procedures, Group
manuals and policies, memos on accounting principles
and policies distributed to the entities and detailed internal
procedures.
2.3.2.2 Group financial control
Organization and principles
The Group’s Financial Control Department provides
strategic management control for the Group. It ensures
standard management rules and policies.
The management control of the Business Lines and
sub-groups are in charge of their business sector. Within
their area of responsibility, they focus on Group guidelines
and work together with the Group’s financial control on
this. They also oversee for their business segment the
operational management control adopted in the regions,
which is carried out for each operational entity.
Le Groupe La Poste entities are structured in “centres
of responsibility”. A centre of responsibility is a level of
delegating authority within the business, to which objectives
and resources are allocated. These centres have all received
a delegation of authority to perform a specific assignment
within the Group’s overall strategy.
The models of responsibility may be defined based on the
following four criteria: capacity to take action on external
sales, capacity to take action on costs, capacity to quantify
services performed and capacity to take action on cash flow.
The coordination process is split into three major
management phases: a financial planning phase, an interim
and annual estimation phase and a completion analysis
phase, which give rise to correspondence between the
Business Lines and sub-groups and the Group Financial
Control Department. The results of each of these phases
are covered in a presentation to the Chairman and CEO and
to the executive Committee.
Internal quality control of financial information and risk management within the Group
In addition to the controls performed by the financial
auditors in the context of their ongoing activities on the
data collected by the Business Lines, support and sub-
group Departments, in particular during the financial
planning process and performance monitoring, the Group’s
Financial Control Department thus pursues the objectives
in terms of risk management under the "Risks and Internal
Audits within the Finance Function" (RECIF) project, in a
continuous approach. The latter in particular provides for
the implementation of risk mapping of this management
field.
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2.3.3 Disclosure of accounting and financial information
Every month, the Chairman’s financial summary is
presented by the Group’s Chief Financial Officer to the
Executive Committee. This document summarises the
financial data of all Group entities based on the reporting
process, as well as physical and non-financial indicators.
This information is presented monthly to the Operational
Management Committee, which along with the members
of the Group Executive Committee, includes the key
operational managers of Business Lines.
The Statutory Auditors examine and certify the annual
financial statements published by the Group and make a
report to La Poste’s Audit Committee.
The Financial Communications Department is in charge
of reporting regular financial information to the various
external stakeholders, and organising relations with
external contacts, in particular credit rating branches,
the AMF, the French financial markets authority and bond
investors. The "Finance" section of the laposte.fr website
includes all the regulatory and financial publications of the
Group.
2.3.4 Summary and outlook
The governance of the financial management information
system was strengthened with particular consideration
of the scope of the direction of the national and European
regulation and Central Purchasing Department. The
Financial Information System Department proceeded to the
review of authorizations, roles and profiles of its integrated
management software package, thus ensuring optimal
separation of roles.
The Governance Charter of the Tax Department's
information system was established and distributed to all
users of the software group.
With regard to professional documentation, the Accounting
Department of cross-functional fields continued its project
to redesign and update its procedures initiated in 2012. First
and second level controls as well as the recommendations
of the internal audit service of the Group have been
incorporated into procedures and more generally within
the processes analysed.
Regarding plans for business continuity and recovery of
financial management, the Financial Information System
Department completed their terms of implementation
and the process of crisis management was defined in
partnership with the management of central information
systems.
The Risk Committee put on the record the objectives of
the RECIF project (Finance Risk and Internal Control), now
within a continuous process. A body co-chaired by the Group
Finance Department and the Group Risk Management
brings together, quarterly, representatives of the two
sectors.
The 2014 outlook is primarily oriented towards the
continuation of work begun in 2013 in terms of risk
management, especially on the topics of consolidation of the
operative continuity and recovery of activity, the finalisation
of work to overhaul its professional documentation, and
the implementation of action plans to control the risks
identified under the RECIF process.
2.4 Internal control and risk management systems in the Business Lines
2.4.1 Mail
2.4.1.1 Organization and resources
Mail Department
At a national level, internal audit and risk management
expertise is found within the Mail General Control, Audit
and Risk Department.
Reporting to the Mail General Secretary, it is responsible for
defining methods and resources, functionally coordinating
the management network of risks in relation to the
corresponding "risks and internal audit" of the Mail support
Departments, monitoring inspections and audits, ensuring
the monitoring of inspections and audits, and approving
and distributing the rules and regulations relating to Mail’s
business activities.
At a local level, each Mail regional operational director
has a team dedicated to risk management, the “quality”
campaign, safety and security, responsible development,
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plans of continued business activity, the spirit of service and
client commitments, this team is composed of:
a risk, quality, safety and environment director who
is responsible for assuring the operational director
that material risks of its entity and all the associated
units are identified and appropriately covered, and that
operations are carried out in compliance with applicable
laws, regulations and legal, environmental, ethical and
professional standards;
operational auditors responsible for carrying out second
level controls and helping branch managers to draw up
and monitor their risk control plans, taking part in the
control of the implementation of national programmes,
controlling approvals and participating in the roll-out of
the risk control policy. Some of these auditors ensure
compliance with competition rules and the standards of
the postal regulations defined by the ARCEP.
Furthermore, national operational Departments as well
as all Mail subsidiaries have appointed internal audit
correspondents charged with organising and relaying the
approach within their respective entities.
Mail’s policy is built on the principle of managerial
responsibility. At each of the three management levels
(head office, regional and branch), the manager has full
responsibility for controlling the risks within his or her
remit. The risk control plan, comprising a risk mapping, a
risk coverage plan that includes action plans and a control
plan, is integrated into each entity's management system
and is regularly monitored.
The Mail Department performs the self-assessment of the
maturity of the internal audit system in a decentralised
manner. National operational Departments and subsidiaries
carry out a self-assessment each year in order to report on
their system and identify areas of improvement.
Subsidiaries
Mail’s internal audit policy applies to the other subsidiaries
controlled by the Sofipost group, which itself comprises four
operational holding companies. With the support of the Mail
General Control, Audit and Risk Department, the internal
audit contacts within Sofipost and the operational holding
companies provide the necessary expertise to deploy this
policy.
2.4.1.2 Permanent internal audit procedures
At the Mail Department head office, the business control
plan is decentralised in each functional Department and
the associated control plan is coordinated during its internal
audit meeting.
At the regional level, the plan is developed and monitored
for each entity at the end of the identification process of
the entity's major risks. Each of the support Departments
at the regional operational Department implements
monitoring systems of its business by selecting the checks
to perform on its scope. They contribute to the identification
of emerging risks and the update of the risk control plan.
The Mail Security Department is in charge of the fight
against all malicious acts characterised by internal
or external fraud. To do this, it puts in place systems to
prevent and discourage these offences and, if necessary,
punish the perpetrators identified. The scope of action of
this Department consists in the protection of the product
that clients entrust to Mail, and also to protecting Mail’s
tangible and intangible assets.
2.4.1.3 Risk management procedures
The identification of the Mail's major risks is carried out via
individual meetings with each member of the Mail's General
Management Committee. The risks are then assessed
with a view to develop the mapping of the major risks of
the Mail, the risk owners working on the construction of
corresponding coverage plans.
The Mail risk, audit and general control Department
draws up and distributes the list of risks that it has
identified and analysed to all the regional stakeholders
and national directors to enable them to identify their level
of vulnerability to these risks and to adapt their mapping
accordingly.
In 2013, it enhanced the risk identification process by
requesting the regional operating Departments to benefit
from a closer perception of transactions and which is
consistent with the decentralisation programme of the Mail.
Within the subsidiaries, the parent company system is also
adopted. Each subsidiary prepares an annual risk control
plan, approved by its governing body. The operational
holding companies ensure that the system is properly
implemented within their associated subsidiaries and also
prepare a risk control plan that is adapted to their own area
of responsibility.
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2.4.1.4 Internal control and risk management
procedures concerning the Group’s accounting
and financial information
Mail’s Accounting Department carries out its work on the
basis of La Poste’s accounting Department’s organizational
and operational principles so as to ensure the preparation
of Mail’s and the Group’s financial statements.
It has updated its risk mapping on six pre-identified cycles
(suppliers, fixed assets, customers, payroll, cash flows and
management accounting) and completed it with actions on
stocks and off-balance-sheet commitments.
Within La Poste, it contributes to the “Financial Risks and
Internal Control” approach.
2.4.1.5 Summary and outlook
In 2013, actions linked to risk management and internal
auditing aimed to accompany the Mail's decentralisation
programme by ensuring to secure branch managers.
Updating the professional literature and enriching the
features of their consultation tool helped improve the
support provided to branch managers regarding their
identification of their control environment work.
A training course for those responsible for transactions and
the quality of the facility is being finalised.
A second-level new tool for internal auditing has been
deployed to all regional operational Departments to
standardise checklists and simplify the analysis of
consolidated results at national level.
As part of the Group RECIF process (Financial Risks and
Internal Control), the Mail conducted specific actions
regarding the securitisation of receivables from staff and
economic issues surrounding claims.
2014 heralds a particularly constrained economic
environment, requiring an acceleration of the pace of the
transformation of the Mail as well as the strengthening of
the internal audit system related to decentralisation.
In this context, the actions of the "Risks and internal audit"
division of the Department of Risk, Audit and General
Control will aim to accompany regional operational
directions more closely as part of mastering their control
activities as a priority, which will be the drivers of their
performance.
2.4.2 Parcels (ColiPoste)/Express (GeoPost)
2.4.2.1 Organization and resources
ColiPoste's risk management activities are based on
the Group's risk management Charter. It is managed by
the Quality and Sustainable Development Department
in conjunction with the Administrative and financial
Department and is placed under the responsibility of
ColiPoste's general management.
Each of the general managers of the GeoPost group is
responsible for setting up a relevant and reliable internal
audit system that fits into the organizational framework
defined by the Chairman and Chief Executive Officer of
GeoPost and complies with Le Groupe La Poste's Risk
Management Charter.
The Executive Management Committee includes risk
management and organization in its coordination of
operational entities.
The Accounts and Audit Committee of the Board of Directors of GeoPost monitors the effectiveness of internal audit and risk management systems.
Each subsidiary is managed based on the corporate
governance principles established by the Executive
Management Committee and legal bodies, in accordance
with the regulations applicable in each country.
2.4.2.2 Permanent internal audit procedures
The internal audit goals are driven by each ColiPoste
Department and generally factored into each executive’s
performance management. The Quality and Sustainable
Development Department coordinates the development
of methods and tools that are placed at the disposal of
managers.
Its three main systems to fight against fraud are:
- the act ions of the Directorate of Securi ty :
investigations conducted in the field make tracking
and identifying potential perpetrators of fraud
and spoliation of packages possible, based on the
statistical surveys of lost parcels by branch and
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region. If evidence is established, the perpetrators are
systematically brought before justice, with La Poste
as civil plaintiff. ColiPoste teams work in coordination
with the police and gendarmerie;
- the improvement of information systems: as part of
the management plan, ColiPoste develops information
systems to improve the traceability of packages and
allows for a control at each stage of their treatment;
- security and safety systems implemented at branch
level (sorting centres, ColiPoste branches).
GeoPost's operational subsidiaries organise their
business control themselves by using the delegations of
authority defined by the governance, and in compliance
with the rules set out by the GeoPost general
management. The coordination of level one internal audit
systems is thus placed under the direct responsibility of
the Directors of operational subsidiaries and of the legal
bodies organising these entities’ governance.
The main decisions made by the General Management
Committee and the European Operational Committee are
subject to reports. This formalises the GeoPost Executive
Management’s control over the Group’s strategic goals
and communicated to the relevant managers for
implementation.
The Executive Management Committee asks the GeoPost
Audit Department to examine the governance and
internal audit systems of subsidiaries. In this connection,
the Audit Department works with the legal Department's
assessors to evaluate the compliance of subsidiaries
with the laws and regulations that concern them.
The GeoPost Security Department coordinates the anti-
fraud system at the holding level and each subsidiary has
an organization identified with respect to security as well
as a security-related action plan. The objectives of this
action plan are integrated into the subsidiary's business
plan and monitored through a monthly report.
The GeoPost Department of Legal Affairs is responsible
for the dissemination of information on compliance,
particularly with regard to anti-money laundering and
anti-corruption regulations, and drives the adaptation
of reference guides in these areas with GeoPost
subsidiaries. Each subsidiary is responsible for enforcing
them in connection with local regulations.
2.4.2.3 Risk management procedures
Each year, ColiPoste's general management identifies
and updates its risks at the level of its Management
Committee. The Legal Risk Committee organises and
manages risks in the field of law, principally by reviewing
all legal risks and their action plans and preventing
those associated with developments in legislation or with
jurisprudences which may apply to ColiPoste activities.
ColiPoste's Risk Committee integrates legal risks into
human resources.
Regional Operational Departments draw up their risk
control plans that are then consolidated at corporate
level. The risks identified at Regional Operational
Departments are referred to the Department of Quality
and Sustainable Development at ColiPoste prior to
defining budgets and carrying out the annual update of
the national map.
Risk control plans are regularly monitored by the entities
that bear the risks themselves. They are reviewed
annually by the "Quality and Sustainable Development"
system and approved with the ColiPoste Management
Committee.
The risk analysis of GeoPost is carried out at the GeoPost
group level for events likely to affect the achievement of
the latter’s goal, and at a local level for risks relating to
the achievement of each subsidiary’s goals.
Prior to the budget drafting process and the process of
updating of the strategic plans of subsidiaries, members
of the General Management Committee compile and
analyse with subsidiary managers the potential strategic
risks related to activities placed under their responsibility
and liable to have an impact on the GeoPost group.
Mapping risks, a result of this process, allows GeoPost’s
annual audit plan to be established. This annual audit
plan is approved by GeoPost's Executive Management
before being presented to GeoPost’s Audit and Accounts
Committee, in conjunction with preparing the work of
GeoPost’s Board of Directors.
2.4.2.4 Internal control and risk management
procedures concerning the Group’s accounting
and financial information
The setting-up and control of ColiPoste's accounting and
financial information are based on:
- procedures concerning closing, reconciliation and
control points, analysis of defect status as well as a
cost-based accounting manual;
- monthly publication and analysis of detailed
performance indicators;
- budget management for making sure that the actual
figures correspond to the commitments taken and
past results;
With respect to GeoPost, financial information is
processed on the basis of management standards
applicable in all the subsidiaries and of a shared
reporting and accounting system.
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GeoPost’s Finance Department carries out management
control, centralised cash management, accounting and
tax assignments. The responsibilities of the financial
auditors are split by subsidiary and by major processes.
They include permanent monitoring reviews of the
financial processes of operational entities.
Each subsidiary has a dedicated financial and accounting
structure with resources that vary depending on size, and
each has its own accounting system.
The accounting and financial reporting between the
subsidiaries and GeoPost’s Finance Department
includes:
- with regard to financial control—monthly financial
reporting covering each component of operating
profit and identifying the risk factors that may hamper
achievement of the goal. Monthly reports on quality of
service and security, supplemented by weekly volume
reporting;
- with regard to accounting—monthly closing of the
consolidated financial statements, in line with
the accounting standards drawn up by Le Groupe
La Poste.
GeoPost’s Finance Department presents the Executive
Management Committee with a monthly report on the
financial position of GeoPost and its subsidiaries, and
analyses its performance vis-à-vis the budgetary goals.
Financial control reporting is sent monthly to Le Groupe
La Poste’s Finance Department.
When closing the financial statements, GeoPost’s
Finance Department checks the consistency of the
figures directly provided to it by each subsidiary. The
Boards of Directors at the subsidiaries approve their
separate financial statements, and the consolidated
financial statements are presented to GeoPost’s Board
of Directors.
2.4.2.5 Summary and outlook
In 2013, ColiPoste particularly enhanced its management
of activities by deploying training courses and awareness
raising projects in the following specific fields:
competition law, the transfer of funds via La Poste Retail
Brand offices and the prevention of verbal and physical
aggressions which may take place during delivery.
The design of standard models of risk management
plans were finalised for ColiPoste branches and centres.
ColiPoste appointed a dedicated focal point for
coordinating the business continuity plans of Business
Lines and their branches.
The main actions conducted by GeoPost in 2013 led
to carrying out specific audits on projects or themes
proposed in the Le Groupe La Poste risk mapping or that
of GeoPost. They particularly concerned sales, purchases
of transport systems, management of cash and payroll,
as well as issues related to the security of information
systems.
In addition, a new audit cycle was introduced in 2013 to
cover issues relating to the safety of transactions. This
new process includes the review of internal audit related
to secure transactions and the performance review
processes to ensure the safety of the goods, facilities
and safety of persons and compliance with standards
related to safety.
In addition, the cash audit cycle was enhanced this year
by a new audit methodology based on a self-assessment
questionnaire.
In 2014, the deployment system of risk management
plan models will be defined for all branches and
continued activity development plans will follow.
ColiPoste's financial information system will enhance the
start of production of the dematerialisation of supplier
invoices and the automatisation of control works and
analysis of monthly accounts.
GeoPost will continue to develop its audit cycles, and
deploy Le Groupe La Poste's information system security
policy to all its entities.
2.4.3 La Banque Postale
2.4.3.1 Organization and resources
The global system of risk management of La Banque
Postale is structured according to the following three lines
of defence:
The operational Business Lines responsible for adapting
the risk management system.
La Banque Postale group's r isk management
guarantees the existence of a framework which is
generally favourable and homogeneous, allowing the
risk management systems in the bank to be defined and
developed.
Constitutive functions of the internal audit system tasked
with giving an independent assessment of the efficiency
of the risk control system in place.
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The risk management system in place at La Banque Postale
is based on:
a policy of risk management and a Charter of the
"Risks" sector developed by the La Banque Postale
Risk Management group: for all Departments of the
bank, these two documents set out the principles of risk
management and control that must be respected and be
subject to a collection of procedures;
the responsibility of all stakeholders: all employees
must ensure that the transactions they process as part
of their activity and the operations that they handle are
executed according to the procedures provided and with
the required quality level, they must be able to carry out
the correct command of their activity and their risks;
the adjustment of controls to the level of risk to be
managed: each manager analyses his/her risks and
sets up the control system required to control them
in compliance with La Banque Postale's external and
internal standards and rules;
the exhaustiveness of the scope of the control system:
this system covers all the business activities of
La Banque Postale. It applies to risks of all kinds,
to all employees acting in the name and on behalf of
La Banque Postale and to all the group's entities.
The internal audit system also applies to all essential
services that are outsourced.
The control and risk management system deployed
by La Banque Postale covers all banking and financial
activities, whether carried out in the bank in the strict sense,
in financial centres, in the contact points of the network of
La Poste Retail Brand or in subsidiaries constituting the
group La Banque Postale. This project also extends to the
provisions of essential outsourced services.
The outsourcing of certain provisions of services is placed
under the responsibility of the Department or the subsidiary
in charge of the activity and is subject to contracts which
meet the standards set by La Banque Postale.
Three bodies aim to organise and drive the risk
management of La Banque Postale:
the Audit Committee, part of the Supervisory Board,
monitors the preparation and control of the Bank’s
financial and accounting information, and assesses the
quality of internal audit and risk management;
the Risk Committee of La Banque Postale, led by the
Director of Risks, defines the bank's risk control policy,
examines credit, market and operational risks and
monitors the principal commitments. It also approves
risk control systems and is informed that they are being
complied with;
the Committee for the Coordination of Internal Audit and Ethics, ensures the coherence and efficacy of
the internal audit project, following the application of
ethics regulations and their compliance with regard to
regulatory developments.
Two Departments, also reporting directly to La Banque
Postale’s Management Board, coordinate the permanent
monitoring and risk management system:
the Compliance and Permanent Control Department is tasked with the management of non-compliance
risk as defined in Article 4 of Regulation CRBF 97-02,
as amended, namely the risk of non-compliance with
legislative and regulatory provisions, professional
and ethical standards, as well as the guidelines of
the Supervisory Board and the instructions of the
Management Board. It also ensures the coordination of
all second level controls;
La Banque Postale Risk Department is tasked with
the development of the risk policy which is included
in the management policies of operational activities,
of the evaluation and prevention of risks as well as
the permanent monitoring and consolidated risk
management.
The subsidiaries develop their own risk management
policy, which they have validated by La Banque Postale
group's Risk Department, guaranteeing the coherence of
all policies.
2.4.3.2 Permanent internal audit procedures
The internal audit of La Banque Postale is organised based
on the following provisions:
CRBF 97-02 Regulation, as amended;
the Prudential Regulation, principally including
the decree of 20 February 2007 relating to capital
requirements, Regulation 93-05 relating to major risks,
the decree of 5 May 2009 related to the management
of liquidity risk and Regulation 2000-3 relating to the
prudential supervision on a consolidated basis;
the General Regulations of the AMF (the French Financial
Markets Authority) for activities related to investment
services.
All of the ongoing control plans of the second level control
bodies are prepared using the risk map established by the
entities concerned.
At La Poste Retail Brand, the permanent monitoring of
banking activities completed in its points of contact, on
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the base of the framework agreement which links it to
La Banque Postale, is organised as follows:
The branch managers of the Retail Brand ensure first
level controls by supplementing the self-control system
based on specifications drawn up by the Department of
Permanent Monitoring.
Bank operational auditors provide these controls in post
offices under the hierarchical responsibility of regional
bank representatives and the functional control of the
Department of Permanent Monitoring.
La Banque Postale has created control guidelines that
contain grids concerning each of the themes or operations
selected, as well as a form for tracking all the corrective
measures taken by branch managers after the weaknesses
are observed. These guidelines are updated twice a year
and the themes or operations chosen are in line with the
assessment of the risks.
In financial centres, permanent monitoring is managed
by the Department of Transactions at La Banque Postale,
under the functional authority of the Department of
Permanent Monitoring.
The first level control is based on self-control and
hierarchical control, the teams of Internal Audit
Departments and the compliance of financial centres
ensuring second level controls.
In business centres, first level controls, based on a control
plan elaborated by the Department of Businesses and
Regional Development, are ensured by the managers of
business centres.
With regard to second level controls, operational bank
auditors who carry them out rely on a control plan designed
by the Permanent Monitoring Department.
Fraud is monitored by La Banque Postale Risk Management
group, which coordinates the fight against fraud, either
directly or through more operational teams.
Since February 2013, to cope with the increase in fraud
and ever-changing techniques of perpetrators, a cross-
functional project, a major issue for the bank, is led by the
Secretary General of La Banque Postale and its governance
has been entrusted to the Department of Performance and
Change.
Anti-money laundering prevention and the fight against
corruption is, for its part, in charge of financial transactions
within the Security Department that is attached to the
Department of Compliance and Permanent Control.
2.4.3.3 Risk management procedures
Risk management is organised in accordance with banking
and prudential regulations.
The policy of risk management as well as the Charter of the
Risk Sector of La Banque Postale define, in compliance with
the Risk Management Charter of Le Groupe La Poste, the
risk management system.
Risk management includes the identification, measuring
and management of risks. The policy of risk management
also aims to determine the tolerance of risks compatible
with the strategy, the level of equity capital and the financial
trajectory of the bank.
The risks identified by each entity are described in mapping,
allowing La Banque Postale group Risk Management
Department to ensure the implementation of the system,
to conduct analyses, to supply exchanges with its sector
and to produce a consolidated view of risk at La Banque
Postale group level, of their severity and action plans both
underway and planned.
This identification is based on the development of risk maps
drawn up according to different types of risks identified as
credit risk, market risk and operational risk.
2.4.3.4 Internal control and risk management
procedures concerning the Group’s accounting
and financial information
Responsibility for preparing and processing accounting
information lies with La Banque Postale’s Accounting
Department. Its work notably consists of establishing rules
and ensuring the production and distribution of quality
accounting information, on the basis of coordination of the
bank's accounting activities.
The Accounting Department defines and coordinates the
first and second level justification and control programmes
and follows their execution. Permanent control is ensured
in the following manner.
First level controls
The operational accounting services of financial centres,
national centres, the teams of the Department of Financial
Operations and Accounting Services and general resources
of the bank ensure first level control for accounting
information. Control programmes are reviewed on the basis
of the risk analysis that is carried out when checking and
preparing financial statements.
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Second level controls
The accounting auditors carry out second level controls
related to accounting information in the form of cross-
functional controls that make it possible to ensure the
quality and completeness of the first level controls
performed by the operational entities. The results of these
controls are documented by summaries, by cycles and are
supported by scorecards in place on all the control cycles
(retail banking accounts, market transactions and general
resources).
The Accounting Department also coordinates the
consolidation of companies which La Banque Postale
is composed of via special instructions. The accounting
information control process is formalised by means of
control manuals and is also based on procedures relating
to documentation supporting financial statements and the
drafting of closing packages as provided for in the audit
programmes.
2.4.3.5 Summary and outlook
La Banque Postale's risk management system developed
towards the constitution of three lines of defence as
recommended by international standards applied to risk
management in 2013.
The Department of Risks became the Department of
Risks of La Banque Postale group. This development
was accompanied with the distribution of a new risk
management policy and the implementation of the "risks"
sector of the Charter.
With regard to internal audit, La Banque Postale
experienced a significant development in its control system
with the creation of the Permanent Monitoring Department.
Related to the bank's Department of Compliance and
Permanent Monitoring, it henceforth ensures second level
coordination and management.
In addition, the permanent monitoring system of the
headquarters, branches, and essential outsourced services
was integrated into the Permanent Monitoring Department.
The number of staff dedicated to risk management was
significantly increased in the bank to attain 678 employees
at the end of 2013.
These actions were accompanied over the course of the year
by the implementation of numerous new training courses
from which the players involved in risk management and
internal audit management of La Banque Postale benefited.
In 2014, the Permanent Monitoring Department will revise
all control grids in order to adapt and cover each new
activity deployed by La Banque Postale. The organization of
controls will be adapted to the organization developments
of operational processes in place.
The self-assessments completed in the head office,
subsidiary and essential outsourced services Departments
will be transformed into control activities in order to
homogenise the system.
Moreover, La Banque Postale group Risk Department is
strongly mobilised with the aim to roll-out the programme
for the transition to the internal Basel II models, which is
accompanied by important training measures and will lead,
all things being equal, to a substantial saving of the bank's
equity funds.
Finally, in the face of growth of new kinds of fraud, work
which aims to strengthen operational anti-fraud systems
will be pursued. With this in mind, La Banque Postale will
be equipped with means of predictive analysis and will
reinforce its coordination with La Poste Retail Brand.
2.4.4 Retail Brand
2.4.4.1 Organization and resources
Within the executive management of La Poste Retail Brand,
the Audit and Risk Control Department is responsible for
promoting and developing—at all La Poste Retail Brand
entities—the permanent monitoring and risk management
system in accordance with the major risks and operational
factors identified across its operations.
Operational risks included in the activities completed in
all points of network contact, and in particular in all post
officers, constitute the core scope to be covered using its
system.
The provisions provided by La Poste Retail Brand for
the account of different Business Lines of the Group
are governed by service agreements which define the
regulations applicable to matters of control in particular.
Regarding the partner contact point network of La Poste
Retail Brand, the agreements define the conditions in which
the activities are organised.
The governance of La Poste Retail Brand risks has a
dedicated body: the National Risk Committee. Previously
chaired by the Deputy Chief Executive Officer in charge of
the organization and resources of La Poste, the Committee
identifies major and operational risks of La Poste Retail
Brand, decides major guidelines for risk management and
follows up on risks following the implementation of the
permanent monitoring plan and the audit programme.
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The organization and management of risks, at regional
level, is structured upon three bodies:
The Regional Risk Committee is responsible for
managing operational risks of non-banking activities,
analysing the activities or branches that are most at
risk and defining the action plans required for better
risk control.
The Regional Banking Control Monitoring Committee
manages operational risks for banking activities.
The Risk Committee in the Regional Support
Departments ensures the monitoring of risks included
in cross-functional activities and fields for its part.
2.4.4.2 Permanent internal audit procedures
Branch managers, sales managers in their capacity as line
managers and the staff of permanent monitoring bodies
of La Banque Postale respectively ensure first and second
level controls of banking activities.
Operation managers, and in particular branch managers, as
well as permanent monitoring bodies and specific control
bodies of the Retail Brand, are respectively in charge of
first and second level controls of non-banking activities
and fields.
In Support and Regional Support Departments, the controls
target cross-functional activities which pose risks: hygiene,
health and safety at work, road safety, the processing of
claims, monitoring of banking authorizations, purchasing
procedures, in addition to the compliance of facilities,
equipment and their maintenance in the real estate domain.
The "risk management" sector implements the permanent
monitoring plan prepared by the Audit and Risk
Management Department by adapting it to the specific
needs of the regions and communicates its results to
regional managers.
The Audit and Risk Management Department works in close
synergy with the Security Department of La Poste Retail
Brand in order to coordinate the actions implemented for
anti-fraud matters. In the banking field, these actions are
decided upon jointly with the concerned Departments of
La Banque Postale. The anti-fraud system is based on two
management and decision bodies which unite the experts
involved with La Poste Retail Brand and other Business
Lines of the Group. A specific Management Committee is
in charge of fraud related to mobile telephony. Its action in
2013 was particularly significant and caused a significant
decrease in the number of fraudulent acts.
The national investigation unit of La Poste Retail Brand is
dedicated to the detection of malicious acts with an origin
of internal fraud.
Finally, the La Poste Accounting Department established
tools and procedures to aid in the detection of wrongdoing
based on the analysis of accounting data from post offices.
2.4.4.3 Risk management procedures
The identification of major risks in La Poste Retail Brand is
carried out by the Audit and Risk Management Department
and relies on the expertise of the managers of strategic
activity fields, on executive managers and regional
managers. The National Risk Committee validates the risks
identified in this way and the mapping of La Poste Retail
Brand major risks is updated annually.
At the national level, each risk owner is responsible for
setting up risk management plans. New controls may be
requested and implemented to this effect.
The Regional Department is the priority level for preparing,
coordinating and implementing action plans. Each regional
La Poste Retail Brand director has observations prepared
by the various control bodies.
The general management of the La Poste Retail Brand
has completed this system by developing a comprehensive
business continuity plan that covers Metropolitan France
and the overseas departments.
2.4.4.4 Internal control and risk management
procedures concerning the Group’s accounting
and financial information
The accounting and financial information control procedures
are drawn up by the Accounting Department at the La Poste
Retail Brand. They specify, inter alia, all accounting, tax, and
corporate regulations in force.
Revision files composed by the Accounting Department of
La Poste Retail Brand are implemented monthly by regional
accounting services and a national synopsis is completed.
These files:
list the current accounting work assigned to accounting
services, present the issues specific to each of these
works, the roles and responsibilities of each player and
the control activities implemented;
map closing procedures by listing balancing tasks and
their timing, to guarantee shorter closing deadlines;
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present the risks inherent in each process, the controls
put in place by La Poste Retail Brand to mitigate them
and the residual risks in respect of which action plans
are put in place;
list tasks and controls that must be carried out at
each level of the accounting process, formalise their
completion and thus facilitate review by management.
The local accounting units review the revision files to control
the financial statements of La Poste Retail Brand. This
control is checked at first and second level by the Regional
Accounting Departments and the head office of La Poste
Retail Brand’s Accounting Department carries out third
level controls on their work.
2.4.4.5 Summary and outlook
The three main guidelines adopted by the National Risk
Committee of La Poste Retail Brand, namely strengthening
the governance and accountability of managers, the level
of professionalism of players and the implementation of a
business continuity plan, were subject to significant actions
in 2013.
The "Risk management plan" approach has been
widespread across all branches, thus contributing to
greater accountability of branch managers in terms of risk
management.
In terms of the professionalism of players, managers and
those responsible for permanent monitoring have benefited
from training courses offered by the Risk Management
Group on risk management and the banking environment.
Training on the management of banking risks has also
been deployed to the 1,800 branch managers. Access to the
information system dedicated to the permanent monitoring
and management of risks was widespread among sales
managers.
In addition, a comprehensive plan for business continuity
of La Poste Retail Brand was established in 2013 and was
expanded with the help of specific training across teams
of local branches and with the help of the distribution of
a reference document as well as an operational guide to
crisis management.
In addition to these three major guidelines, the security
of information systems was strengthened by the
establishment of a Joint Committee between La Banque
Postale and the La Poste Retail Brand and a management
body of accreditations under the anti-fraud programme.
With regard to ethics, La Poste Retail Brand's system
notably included the bank signals concerning ethical
breaches.
In accounting and finance, important work on off-balance
sheet commitment, as part of the Group's RECIF (Finance
Risk and Internal Control) process, in particular led to:
deployment of a first level control of non-financial
information to verify the consistency of the database
information provided by the subsidiaries;
a second level control across players in the Department
of real estate Coordination and the Department of
Support Performance.
At the end of 2013, an Internal Audit Department and
Risk Management Department was created within the
Accounting Department of La Poste Retail Brand.
Work undertaken with La Banque Postale will result in
the organization of regional "risks and controls" bodies
common to banking and non-banking risks in 2014.
The major guidelines of the Risk Committee will always be
the priorities of 2014.
A "Risk manager" feature will be implemented at
Head Office Department level and at La Poste Retail
Brand Regional Departments, thus contributing to the
strengthening of the governance of risk management.
The control duties of La Poste Retail Brand and La Banque
Postale auditors will be coordinated to provide branch
managers with an overview of banking and non-banking
risks that may affect the scope of their activities and
increase their responsibility in this area.
The information system dedicated to permanent monitoring
will be extended to incorporate controls related to the fields
of real estate and human resources, thus contributing to
player professionalism.
Finally, the scope of action and ethics will be extended to
non-banking and communication ethics will be reinforced
across all employees of La Poste Retail Brand.
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2.5 Internal control and risk management systems across business areas
In synergy with the Business Lines and the Group’s Risk
Department, the organization of Le Groupe La Poste in
risk management matters is structured within the cross-
business support functions, which particularly cover, in
addition to the accounting and financial areas, the following
key areas: legal affairs, human resources, security,
information systems, real estate and purchasing.
2.5.1 Legal affairs
2.5.1.1 Organization and resources
The Group Legal Affairs and Compliance Department
ensures that principles of governance and legal compliance
are observed at the level of each individual entity. Its cross-
functional view and the daily work of men and women in the
"Legal compliance" sector which it leads, ensure optimal
preservation of the interests of the Group.
It provides legal expertise on the strategic files of the Group,
ensures the homogeneity of practices, the compliance
objectives vis-à-vis its regulatory environment and its
development and has the duty to alert of any major legal
risk, thus contributing to the economic performance of the
Group.
The Group Department of Law and Compliance is
responsible for the management and monitoring of
compliance programmes, in particular, the competition
law compliance programme within the Group, as defined
in accordance with the expectations of the Competition
Authority. Actions conducted are subject to an annual
review.
Finally, the Group’s Legal Affairs and Compliance
Department ensures that the Group fulfils the commitments
and guarantees granted by La Poste to its shareholder
Caisse des Dépôts et Consignations.
2.5.1.2 Permanent internal audit procedures
The Group Department of Law and Compliance designs the
legal architecture for the establishment of delegations for
the Group, monitors their up-to-dateness in collaboration
with the internal audit of the Group, and assists Business
Lines Departments in the development of their own sub-
delegations.
The legal compliance of the Group is managed through
the development of reference guides, the action of
corresponding networks of "legal compliance", "competition
compliance" and "off-balance sheet commitments" in the
Legal Departments of Business Lines and subsidiaries, and
its information system that integrates control tools.
The reference guide dedicated to anti-money laundering
and anti-corruption measures and assistance given to the
Ethics Group in its efforts to prevent corruption participate
in the effectiveness of the anti-fraud control group.
2.5.1.3 Risk management procedures
Updating the mapping of legal risks of the Group, which
results in a census of the legal Departments of business
Lines and subsidiaries, is controlled and approved by the
Group Department of Law and Compliance as part of its
Plenary Committee. It is then presented to the Group Risk
Committee before being sent to its shareholders: the French
government and the Caisse des Dépôts et Consignations.
The Group Department of Law and Compliance relies
on two software packages to manage risks: the first for
the campaign to update the mapping, the second for the
monitoring of the risks linked to corporate, business
and governmental legal disputes. This software package
monitoring risks linked to legal disputes contributes to the
internal accounting control of services.
2.5.1.4 Summary and outlook
In 2013, the Group Department of Law and Compliance
updated certain existing reference guides with regard to the
penal responsibility of heads of branches and discrimination
risk and deployed new compliance reference guides, in
particular in the fields of corporate business responsibility,
the fight against laundering and merger and acquisition
transactions from a competition point of view. An addition
to reference guides with regard to corporate law and
governmental law was also edited.
It also conducted reliability controls and evaluated the
information related to the terms of office and equity
investments. A second level annual control was conducted
in partnership with the Group Financial Department
on the subject of census procedures of off-balance
sheet commitments within the Group. In addition, the
"Competition" Charter of the Group was signed by the
Chairman in November and is in the course of deployment.
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Finally, it formalised its business continuity plan and
implemented the process of establishing the list of Group
insiders.
In 2014, the Group Department of Law and Compliance
will pursue work related to the monitoring process and
the control of off-balance sheet commitments and to the
perfecting of its information tool in order to improve its legal
risk management in a continuous manner.
2.5.2 Human resources
2.5.2.1 Organization and resources
The Group Human Resources Department guarantees the
values, principles and rules that are the foundations of the
corporate social responsibility of Le Groupe La Poste.
In this connection, it is tasked with defining human
resources rules, in particular for the entire Group,
guaranteeing their implementation as well as compliance
with rules and agreements that apply to all postal workers
linked to the Group's strategy and values, which will be
deployed and adapted to the various Business Lines and
cross-cutting activities.
The main principles of these policies also apply to Group
subsidiaries.
The Group Human Resources Department provides design
and management of key strategic directions and policies of
the various areas of human resources: employment policy,
professional development and skills development, training,
wage policy, actions and social relations, governance of the
information system of the field, work organization, health
and safety in the workplace, etc.
It manages and controls the implementation of these
Business Lines and cross-functional activities. It defines
the rules and develops common systems and tools for all
the Business Lines and is responsible for social reporting.
It additionally took the responsibility at the end of the year
for the Group Institut du Management project.
The Group Human Resources Department manages the
employee relations of Le Groupe La Poste parent company,
and in this capacity, negotiates the agreements that apply
to the entire scope, verifies the implementation and
compliance with these agreements.
It is a single point of contact for external institutional
partners on HR matters.
Lastly, it organises and coordinates the management of
risks of the human resources area through the Committee
of the Human Resources Department in order to provide
information and decide on the establishment of preventive
or corrective measures when this proves to be necessary.
It performs its duties as part of its functional authority on
the entire HR activity of Le Groupe La Poste.
2.5.2.2 Permanent internal audit procedures
With regard to compliance, the Group Human Resources
Department defines the principles of HR management
and contractual policy, manages legislative and regulatory
developments in regulations in coordination with outside
organizations (e.g. URSSAF, Tax authorities, etc.) with
respect to regulations specific to the Group. It is the Group’s
representative at the political and regulatory level with
external bodies and organizations in the field of human
resources.
It determines the common framework (policies, rules,
procedures) within which the Business Lines adapt these
policies to their scope and define the procedures for
implementing changes in laws and regulations as well as
the national or local agreements within their scope.
The Group’s Human Resources Department coordinates
La Poste’s occupational health and safety policy and
advises the Business Lines in its implementation. It defines
La Poste’s operational procedures for occupational health
in compliance with current regulations.
The Department coordinates La Poste’s Occupational
Health Observatory and the systems for cross-functional
prevention, adapting them to the specific features of the
Business Lines.
The Group's Human Resources Department also acquired
an internal management system of various projects initiated
within the framework of an agreement on the Quality of
life at work, allowing a consolidated vision of the effective
deployment of measures decided within the Business Lines
to be obtained.
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2.5.2.3 Risk management procedures
The mapping of major risks relating to human resources is
approved by the Human Resources Projects Committee, and
then presented to the Group’s Risk Committee.
For each of the major risks identified, risk owners and
contributors are named, formal action plans established
and then tracked by the Human Resources Coordination
Committee. A risk control plan was prepared.
2.5.2.4 Summary and outlook
The Group's Human Resources Department signed the
agreement on Quality of life at work on 22 January 2013
following the commitments made in the framework of the
"Major Dialogue."
This agreement established an element structuring the
action of the Group's Human Resources Department
throughout 2013 in terms of the organization of social
dialogue—as agenda topics—and actions implemented.
Successes and areas for improvement were shared with
the trade unions who were signatories of the agreement
in two trailing commissions. Accomplishments include
the significant increase in the number of postal workers
receiving training or significant improvement in access to
an occupational health-care professional.
A change management method was defined and
implemented and a social alarm created.
The agreement also defined topics and the agenda for
social dialogue.
Of the four negotiations opened during the year, those
relating to teleworking and the contract of generations
have resulted in agreements and exchanges will continue
on other topics.
The action of the Group's Human Resources Department
also focused on the transformation of the relationship in
human resources, with the appointment of 1,100 close
human resources correspondents, and on professional
development, aiming to inform each postal worker of
possible careers within the Group to allow him/her to build
his/her own plan. Several very concrete actions which
serve this ambition were implemented: an employment
exchange open to employees of subsidiaries, a definition
of the development route within the Group and Business
Lines, and a holding of the first Professional Development
Week in October 2013.
In 2014, the Group's Human Resources Department plans
to continue its work based on two interrelated principles:
Quality of life at work of each postal worker and the quality
of service provided to customers of Le Groupe La Poste.
In terms of efficiency and control activities, exchanges with
external branches regarding subrogation will be automated
and the monitoring of financial aid on subsidised contracts,
especially for future jobs, is now easier.
In addition, the Group's Human Resources Department
bears the prime strategic project management of time
and activities, pooled across La Poste parent, which
is a significant financial and organizational challenge.
Governance will be shared with the Departments of the
Business Lines concerned and the financial management
of the Group.
This project aims both to concentrate financial efforts of
the Group in this area and to satisfy a request by postal
workers at the "Major Dialogue": to have reliable, updated
and accessible information on their rights to leave.
It will also allow employees in the sector of human
resources to be focused on their support missions,
skills development and support for the definition of the
development route and professional development of postal
workers.
The attention to each postal worker is indeed, more than
ever, a fundamental principle of the action of the Group's
Human Resources Department in 2014.
This principle aims to enable each postman to look calmly
to the future, by allowing him/her to anticipate the changes
that will meet during his/her career at La Poste and
assisting him/her over time, while allowing La Poste to
meet its legal and regulatory obligations as an employer.
This ambition of Quality of life at work throughout his/her
career is shared throughout the Group and supported by the
"human resources" community and managers alike who
will be trained in the human dimension of their duties since
taking office.
It covers many areas of agreement on the Quality of
life at work, relating to health, training or professional
development: adapting his job and his position to his
abilities, exploring the possibility of learning about Business
Lines within the Group and training in order to apply them.
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2.5.3 Security
2.5.3.1 Organization and resources
The Group’s General Security Department ensures
compliance with the policies laid down by the Chairman and
CEO and the Executive Officer as regards general security in
order to protect the Group's human, tangible and intangible
assets. It provides executives with a comprehensive view of
the degree of coverage of the various action plans against
threats and proposes measures to be undertaken to
improve the protection of La Poste and its executive.
The Group's General Security Department guarantees the
working status of the crisis management systems, the
consolidation of business continuity plans and business
recovery plans of the Group. It coordinates the actions to
be implemented in these systems.
It ensures the Group's General Security Department's
management of the information system, the definition of
security policy on information systems and the functional
management of the observatory of information systems
security.
It leads cross-functional work against fraud involving
identity theft, managing IT partners and monitoring the
development of forms of fraud. Governance systems for
reporting incidents is provided by this Department.
The Group General Security Department represents
La Poste across police authorities, defence and civil security
and operates under the central administrative powers
granted by La Poste supervisory authorities in the areas of
defence and operators of vital importance. In this context,
the Director of Group General Security is a Group security
officer and Deputy Group Managing Director of the Group for
the authorization of La Poste operators of vital importance.
The Director of Group General Security is a member of the
Group Risk Committee and the Secretariat of the Group
Security Council, chaired by the Executive Officer.
2.5.3.2 Permanent internal audit procedures
The Group's General Security Department has an
information system and multi-criteria analysis system
which contribute to the identification, evaluation and
treatment of all weakness in general security.
The operational management of fraud is the responsibility
of the Business Lines. The Group's General Security
Department operates—at their request and in subsidiarity to
their action—with a view to coordinate the cross-functional
actions and to define common policies in the Group.
The Group’s General Security Department functionally
manages the security observatory to strengthen the anti-
fraud system.
In terms of crisis management, the methodological
framework established for the whole Group is kept in
operational condition with regular practices. The Group
is also a stakeholder in operational crisis management
systems run by government authorities (specific plans and
exercises). Furthermore, national crises that do not fall
under national sovereignty (Vigipirate, etc.) are under the
responsibility of the director of the Office of the Chairman
and Chief Executive Officer, with support of the Group's
General Security Department.
2.5.3.3 Risk management procedures
The Group’s General Security Department conducts
permanent oversight of events that are liable to have a
significant impact on the Group's security policy and more
particularly on topics related to the protection of employees
and the corporate image.
It collaborates, from the project design phase, with
managers and process leaders to incorporate general
security issues into developments of their operations.
The Group's General Security Department assists the Group
Chairman in organising, ensuring the continued operation
and moderating national crisis management systems.
2.5.3.4 Summary and outlook
In 2013, the Group's General Security Department continued
to deploy the management tool for plans for business
continuity of the Group and implemented a governance with
regard to crisis management and business continuity.
Implementing the programme to assess the security of
Group websites will be continued with a special focus on
La Banque Postale websites.
It implemented, at the request of the Executive Committee,
governance on the safety management of the transport of
dangerous goods (all Business Lines).
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In 2014, the fraud prevention system will be strengthened
with the creation of an information system which shares
and treats fraud procedures, and deploys pilot sites in
the Business Lines of systems which detect falsified
documents.
The security of information systems and systems against
cybercrime will be strengthened by the deployment of an
information system perimeter protection architecture.
2.5.4 Information systems
2.5.4.1 Organization and resources
The Group's Information System Department aims to lead
strategic activities and monitoring of the Group's information
systems in line with the strategic plan. It illuminates the
general direction of technological developments considered
to be major challenges for the Group, defines common
standards and develops inter-Business Lines on resources
associated with information systems (human resources,
financial and technical systems). In addition, it manages
the strategic transformation programme of the Group's
information systems jointly developed with the Departments
of information systems of Business Lines and corporate
business. The governance and economics of information
systems is part of the logic of the accountability of Business
Lines that also applies to the IT sector.
In coordination with the Group General Security Department,
which is namely in charge of defining the security policy of
information systems and to manage IT security risks, the
Group's Information System Department contributes to
the implementation of the information systems' policy of
security.
2.5.4.2 Permanent internal audit procedures
In the context of the Group’s information systems security
policy, Charters for all users and directors with IT duties
institute information system security rules and specify each
party’s roles and responsibilities.
2.5.4.3 Risk management procedures
IT risks are identified and monitored as part of development
works and mapping the major Group risks.
A set of measures was put in place to protect information
systems from malicious attacks. Therefore, the Group's
telecommunication and data exchange network is under
constant surveillance (an observatory operates 24/7)
and is subject to state of the art preventative measures.
In addition, La Poste is equipped with a CERT (Computer
Emergency Response Team) in its observatory.
In addition, in order to reduce the risk of its information
systems being unavailable after a major disaster, whether
to hardware or software, La Poste and its subsidiaries are
introducing business continuity and business recovery plans
in applications deemed critical.
2.5.4.4 Summary and outlook
In a changing regulatory environment, the Correspondant
Informatique et Liberté (Computer and Freedom
Correspondent) in 2013 initiated a new programme to raise
awareness of all internal stakeholders to strengthen the
consideration of data protection into the design of services.
The Commission Nationale Informatique et Liberté (National
Computer and Freedom Commission) has been associated
with the definition of this programme in order to share
expertise and experiences.
A new work environment, the objectives of which primarily
include the incorporation of the Group's security guidelines,
was rolled out within the corporate entities.
Finally, the Group's Information Systems Department, in
collaboration with all Information Systems of Business
Lines Departments and the Group's General Security
Department, initiated discussions in 2013 on the
transformation of information systems as part of the
strategic plan of the Group, and on the following topics:
the workstation of tomorrow, the use of architectures or
outsourced applications for messaging and collaboration
solutions, convergence and sharing of infrastructure
between Business Line and Corporate Business
Departments as well as the development of services related
to networks and telecommunications within the Group. This
work will be pursued in 2014.
2.5.5 Digital field
2.5.5.1 Organization and resources
Le Groupe La Poste's Digital Department, created on
1 October 2012, is tasked with stepping up the Group's
digital transformation.
Its main duties are implementing the management and
governance of Le Groupe La Poste's digital technology
while suggesting the strategy in this field. It is committed
to the completion of business objectives related to digital
technology.
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Pioneer of digital innovation within the Group, it contributes
to the identification and implementation of partnerships and
acquisitions in the digital field and to the design of new
offerings.
It brings its expertise across different Group Business Lines
in particular by helping to implement their changes and
developments of ways of co-operation.
2.5.5.2 Permanent internal audit procedures
The General Secretariat of the Group's Digital Department
is responsible for the implementation of the internal audit
and risk management system.
Based on the Group's Risk Management Charter, and
particularly in connection with the Financial Performance
Department, the Technical Department and Le Groupe
La Poste's Digital Department, it is tasked with defining
the tools and methods of the service.
The internal audit procedures are currently being defined.
After an analysis phase of the internal environment of
the Group's Digital Department, an identification of risk
areas and their evaluation will allow action plans to be
implemented in the first half of 2014.
As part of the stabilisation of the financial processes of the
Group's Digital Department, the internal audit procedures
and risk management procedures regarding financial and
accounting information will be specified in conjunction with
the Finance Department.
2.5.5.3 Risk management procedures
In 2014, the Group's Digital Department will complete the
first version of its risk mapping. It will be shared within its
Management Committee and will be updated annually. This
will also occur for the risk monitoring plan.
2.5.5.4 Summary and outlook
2013 is a year of construction for the Group's Digital
Department which now includes six months of effective
operation. The fundamental principles of the system have
been identified; it will be implemented and deployed in 2014.
2.5.6 Real estate
2.5.6.1 Organization and resources
The real estate division manages its risk management
and internal audit systems and adapts them to all its real
estate business activities, including those carried out on its
account by the Group real estate Department in accordance
with the contract that they have signed.
It articulates its internal audit and risk management system
as follows:
the CEO of Poste Immo, Director of the Group's real
estate, defines and guides the strategy. He is responsible
for the means implemented to develop a secure
operation and monitoring of internal audit;
the members of the Audit Committee of the Poste Immo
Board of Directors evaluate the identification procedures
and the risk management internal audit procedures in
place. They annually review the mapping of major risks
and proceed each semester to the monitoring of relevant
action plans;
members of the Management Committee, chaired by
the CEO of Poste Immo, validate the organization of risk
management, the mapping of major risks and associated
actions, the organization and the implementation of the
internal audit system;
the financial and accounting teams guarantee expertise
and control, managing the budget process and the
preparation of financial statements;
the Audit and Risk Control Department is responsible
for the process of risk management. It develops the
Poste Immo mapping and its risk management plan and
contributes to the completion of the Group's mapping;
the Department of the Quality of Internal Audit and the
Work Environment is responsible for developing internal
audit processes, facilitating the integration of the
approach into the projects and identifying sources of risk.
2.5.6.2 Permanent internal audit procedures
The organization, skills, systems and standards (procedures
and activities) are the base of the internal audit system
of the real estate division. The organization combines
Operational Departments (real estate Business Line) and
the Functional Departments (supports).
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The management system of the real estate division is
primarily based on a division of powers and responsibilities
which are clearly defined by the organigrams. In order
to allow the various operational teams to complete their
objectives, the delegations of power, time delegations or
recurring delegations are implemented and regularly
reviewed by the "Internal Audit" division of the Quality
Department, the Internal Audit Department and the work
environment.
The regulations on the segregation of duties were
implemented in the organization and its information system.
Processes and procedures are revised when necessary to
remain consistent with the objectives.
The control plan activities takes into account important
risks, including operational, financial and compliance
risks, and contributes to the help of managers in the
implementation of the most relevant controls.
The formalisation of an internal environment file allows
each responsible entity to manage its control environment.
For anti-fraud, an ethical guide was given to each employee
in the name of prevention and they are provided with an
independent ethics guide. In addition, training sessions are
deployed across the most affected populations and risk
mapping of fraud has been developed by the division of
Financial Management.
2.5.6.3 Risk management procedures
Each year, the Poste Immo general management entrusted
the Audit and Risk Control Department with completing the
risk mapping on the entire scope of the real estate division
and making regular reports to the Poste Immo general
management on the implementation of risk management
plans.
Managing Directors, their immediate deputies and the
"Risks" correspondents within the Head Office Department
and Regional Departments, the Executive Committee and
the Audit Committee of the Board of Directors participate
in the updating of the risk mapping.
The business continuity plan and crisis management
plan are defined at a macro level for the unit consisting
of Poste Immo, its subsidiaries and the Group real estate
Department.
2.5.6.4 Internal control and risk management
procedures concerning the Group’s accounting
and financial information
The internal audit procedures relating to the preparation
and processing of financial and accounting information
are implemented and documented by the Finance and
Purchasing Department. These documents serve as a
reference guide for financial reporting of the real estate
division.
The risks inherent to accounting and financial activities are
analysed within the framework of risk mapping and are
managed by the internal audit systems pertaining to the
most significant risks.
The reliability of financial information is provided by
inspections carried out in the shared real estate service
centre, then at headquarters, using consistency controls
made by the teams in charge of centralising accounts.
In the closing financial period, accounting information
is subject to review with the Department of Accounting
and Financial Control of the Group. The interim financial
statements are approved by the Audit Committee and the
Poste Immo Board of Directors.
The accounting and financial information is drawn up and
controlled in accordance with applicable standards by Poste
Immo, both relating to legal and internal Group standards.
2.5.6.5 Summary and outlook
In 2013, the internal audit process was strengthened,
which has contributed to a better understanding of risk and
control optimisation.
Thus, the "operational risk—controls" matrices were
established with real estate Management Process
Managers, Asset Management Managers, Purchasing
Managers, Accounting Managers and Management Control
Managers. The concern of these matrices is to highlight risk
areas and clarify goals.
As part of the RECIF process of Le Groupe La Poste (Finance
Risk and Internal Control), the Accounting Department and
the "Internal Audit" division of the Department of Quality,
of the Internal Audit and the Work Environment have been
working together to strengthen control systems for the
disposal of non-real estate assets with net book value of
zero and claims management. This has contributed to the
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improvement of the maturity of risk management systems
in the field of accounting and finance.
The Poste Immo Purchasing Department has opted for
the use of the tool for internal management control of the
Central Purchasing Group to secure all of its operations. As
part of this project, internal audit files were developed on
the purchasing and procurement process.
In 2014, the Department of Quality, Internal Control
and Work Environment will monitor ownership by all
Departments of the real estate division of its plans for
business continuity and crisis management.
The "Internal Audit" division will develop and optimise
control activities in order to maintain an acceptable level of
risk that may affect the completion of the Operational and
Functional Departments' objectives.
The internal audit system will be reoriented, thanks to
the definition of a comprehensive internal audit policy, the
development of a reference guide of common internal audit
and ultimately the implementation of an efficacy measure
of controls by means of indicators and a self-evaluation
questionnaire complementary to that of the Group and
adapted to the situation of Poste Immo.
This internal audit development will cause greater manager
autonomy in the execution of operational controls and
additionally a reliability of the reporting of internal audits
of each Department.
2.5.7 Purchases
2.5.7.1 Organization and resources
The Central Purchasing Department represents
"Purchases" for the Group. In this capacity, it coordinates
a global policy as regards purchasing and suppliers
monitored at national level and defines the common rules
and principles governing Group purchasing.
The Central Purchasing Department defines the common
risks for any purchasing sector. It identifies events that may
affect the organization or the activities of the function and
inspires the internal audit policy based on the procurement
strategy, the recommendations of La Poste Purchasing
Committee and the statutes and regulations.
The Central Purchasing Department implements the
internal audit system for purchases made on behalf of
support and cross-functional entities and for the whole
Group when its buyers prepare contracts that apply to the
whole Group.
Coordination, organization, monitoring and evaluation of this
internal audit system on the perimeter of purchases made
by the direction of the Central Purchasing Department is
carried out at the Purchasing Risk Management Committee
that unites, on a semi-annual basis, all Department
managers and managers of the expanded Purchasing
Committee Department.
2.5.7.2 Permanent internal audit procedures
The operational management of the internal audit system
enters into the scope of the Central Purchasing Department
for purchases made on behalf of support and cross-
functional entities, or on behalf of the Group in the case of
the drawing up of Group contracts. With regard to internal
audit systems of purchasing sectors within the business,
they fall under each Business Line Department. To this end,
tools and methods are provided by the Central Purchasing
Department.
The Central Purchasing Department provides its employees
and purchasing Business Line Departments with a
collection of internal audit procedures which is regularly
updated in the light of developments of purchasing risk
mapping and in particular takes purchasing regulations into
account. It in particular proposes control grids to ensure the
completion of first and second level controls.
The purchasing internal audit activities are integrated into
the Group's internal audit reference guide.
The Purchasing Department's anti-fraud system is
primarily based on the purchasing ethics reference guide,
which aims to enforce the rules of professional conduct,
ethical principles and commitments to the responsible
development of Le Groupe La Poste by all players involved
in the purchasing process, as well as the strict separation
of functions integrated into its information system.
2.5.7.3 Risk management procedures
The identification of common and major risks of the
"purchasing" function, the evaluation of their impact at
Group level and their low probability adverse scenario, in
addition to taking the objectives of the function into account,
lead to the development of risk mapping by the Central
Purchasing Department.
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These risks are listed in six categories, namely risks
related to non-compliance with procedures, the operation
of Purchasing Departments, supplier relationships,
contractual and buyer issues and, finally, the risks of
damage to its image as a result of a failure to follow the
Group’s responsible development policy.
2.5.7.4 Summary and outlook
In 2013, two modules dedicated to risk management were
incorporated into the training curricula of buyers.
In order to limit "supplier" risks in the IT field, discussions
were held with the management of the Group's information
systems and the Audit Department and the Group risks
concerning the terms of reversibility of IT contracts. These
led to the revision of the standard contracts of computer
technology and telecommunications. More generally, with
regard to these risks, the implementation of the credit
rating tool in 2012 was considered effective this year.
During the first half of 2014, the subsidiary Poste Immo will
establish the discussions initiated in 2013 on the subject of
adapting to its internal audit software needs in force at the
direction of central purchasing by deploying this solution.
Finally, the global and cross-functional view of the main
suppliers of the Group will be enhanced.
2.6 Periodic controls
The purpose of internal auditing is to periodically assess the
efficiency of major processes, and the effectiveness of the
Group’s internal audit and risk management.
To attain these objectives, it uses structures that implement
working methods.
2.6.1 Structuring of internal audit services
Given the size and diversity of the Group's businesses, the
audit function has been decentralised since 2003 with:
in each Business Line—Mail, Parcels-Express, Retail
Brand, La Banque Postale—an Audit Department placed
under the authority of the director concerned;
specialised audits in fields requiring specialised
knowledge, such as IT and real estate, have been
placed under the authority of the Executive Officer of
La Poste and the Chief Executive Officer of Poste Immo
respectively. The two officers are likely to carry out audits
across the whole Group, while also providing support to
the Business Line audit units on issues relating to their
area of expertise;
apart from its audit work, which is generally strategic,
Group audit, which reports directly to the Chairman
and Chief Executive Officer of La Poste, ensures the
coordination of audit programmes, the functional
management and professionalism of the internal audit
network, and liaises with La Poste’s governance bodies.
2.6.2 Working methods
Internal auditors comply with professional standards (1),
defined by the IIA (Institute of Internal Auditors).
The IFACI renewed the certifications of four out of the
Group's seven audit units in 2013, based on the internal
auditors’ professional guidelines (RPAI). They were the
Group audit, Mail audit, IT audit and the Poste Immo audit
units.
In 2013, the General Inspectorate of La Banque Postale
has been subject, for the first time, since the creation
of the latter, to an audit. The task, carried out by the
Le Groupe La Poste audit, was to evaluate and monitor
the effectiveness of policies, systems and procedures
put in place under the CRBF 97-02 regulation and more
particularly Article 38, as well as professional standards in
banking and auditing.
(1) Distributed in France by the French Institute of Internal Audits and Control (IFACI).
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The task concluded that the operation of the General
Inspectorate broadly complied with professional standards
and regulations that apply to it.
Each internal audit unit draws up an audit plan based on
the risk mapping of the entity to which it reports. These
plans are finalised, and their implementation monitored
by a collegial body (the Internal Audit Liaison Committee),
which brings together all heads of audit units, the Head
of Group Risk and the Group Director of Taxation and
Accounting at a meeting every two months that is chaired by
the Group Director of Audit and Risk. The consolidated audit
programme for the year, established by the Group audit
unit is first validated by the Group Executive Committee
and then by the Le Groupe La Poste Audit Committee. The
results of this programme are presented to the Company's
management bodies and the Le Groupe La Poste Audit
Committee.
2.6.3 Business activities
The 218 audits carried out in 2013 by all auditing services
enabled a review of operations, processes and major
projects so as to establish that these complied with their
stated aims and objectives and produced the expected
results in the allocated time frames and budgets.
Based on their observations, the auditors, of which there
were 189 in 2013, made recommendations and monitored
progress in implementing actions taken by management
and, as concerns Group audit, by the Executive Committee
in the form of a statement of decisions from the Chairman
and CEO.
The Group audit conducted 19 assignments in 2013, which
concerned the systems of governance, risk management,
the implementation of strategy and major processes, in
particular in the accounting and finance area. Its Director
reports his conclusions and recommendations to the
Group’s Executive Committee and, once a year, presents
the Internal Audit Department’s results to La Poste’s Audit
Committee. The Audit Committee has the broadest powers
to request a particular audit report, recommendations
arising therefrom and management responses.
The Group’s Risk and Audit Director also ensures that
the audit procedures are consistent within the entire
Department, that the auditors are professional in their work
by organising initial and supplementary training courses for
them, and that best practices are distributed and standard
applications are applied.
The Director participates in all meetings of La Poste’s Audit
Committee and maintains frequent contact with the Group’s
Statutory Auditors.
Appendix
Board members’ biographies and positions held
Directors’ biographies and terms of office
As required by Article L. 225-102-1 of the French
Commercial Code, a list of positions held by Directors in
any company appears below. This information is correct to
the best of the Company’s knowledge.
Régis Blanchot has been a member of the Board of
Directors of La Poste since 1 January 2009. He was born
in 1967, and began his career at La Poste as a Controller
at the Paris financial centre in May 1987. He has been the
team leader at this centre since 1995. He was a full-time
employee of Sud-PTT with the status of Federal Secretary
from 1999 to 2008. He re-assumed his position as team
leader in September 2008.
Current term of office within Le Groupe La Poste
• Director of Le Groupe La Poste
Éric Delzant has been a member of the La Poste Board of
Directors since 26 September 2013. Born in 1957, he is a
graduate of Sciences-Po and a former student of ENA (1986-
88, Michel Montaigne Class). Éric Delzant’s career path has
included alternating positions within central Government
(Secretary-General of the French government, Ministry of
Finance, and in particular, at the Ministry of the Interior,
where he was an Advisor to the Minister's Office between
2000 and 2001). He has held regional responsibilities within
local authorities (Advisor to the Chairman of the General
Council, then Managing Director of services for the Pas-
de-Calais Region from 2004-2009, and Managing Director
of the Bordeaux Urban District from 2009 to 2012), and
principally within prefectural authorities. He was specifically
Sub-Prefect of Saint-Girons (Ariège), and Provins (Seine-
et-Marne) and Prefect of Haute-Corse (from 2001 to 2003),
then of Ariège (from 2003 to 2004), and more recently, of the
Auvergne Region (2012 to 2013). Since 12 August 2013, Éric
Delzant has been the inter-ministerial delegate for regional
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planning and regional attractiveness. He is also in charge of
the State Territory Equality Commission (CGET).
Current terms of office within Le Groupe La Poste
Director of Le Groupe La Poste
Florence Derouard was elected by the employees on
16 November 2010 from a list sponsored by the SUD-PTT
trade union. She was born in 1963, and holds a bachelor's
degree in law. She joined the PTT in Paris as a Controller
in 1987. After a period in sorting, she worked behind the
counter (as well as at the till and in accounting). In 2000,
she was transferred to the Payroll Department in Rouen,
working on staff pay and family allowances, before moving
to Centre interdépartemental de gestion administrative de
paie (the inter-departmental centre for administrative
management and pay).
Current term of office within Le Groupe La Poste
Director of Le Groupe La Poste
Bernard Dupin was elected by the employees on
16 November 2010 from a list sponsored by the CGT trade
union. He was born in 1951. After studying law, he left the
country in 1976 to teach at the Collège Français in Montréal.
In 1982, he was a PTT inspector at the main tax receipts
office at Paris Louvre, then at the Financial Services
Department in Paris and, in 1990, Montpellier Rondelet.
Working as a trade unionist, he became Secretary-General
of the CGT labour union's departmental union for postal
and telecom business in Hérault, then member of the
Federal Bureau for international business until 2011. He
was elected to the European Post and Logistics segment
of the UNI Global Union International Federation and
member of the Management Committee for the executive
segment, which includes 157 trade unions representing
2.5 million employees around the world and is a member
of its Management Committee. Bernard Dupin, now a senior
executive at La Poste, is a member of the regional Economic
and Social Council of Languedoc-Roussillon.
Current term of office within Le Groupe La Poste
Director of Le Groupe La Poste
Sylvie Féola, was elected by staff on 16 November 2010
from a list sponsored by the CGT. Born in 1961, she started
out at La Poste as a seasonal worker in 1980 and has
since spent her whole career at the Financial Centre in
Marseille. Member of the Joint Technical Committee (comité
technique paritaire) of this centre from 1997 to 2010, she
was elected secretary of the CGT’s departmental union of
finance workers 13 in 1995, then General Secretary from
1997 to 2010. She represented the CGT on Committees of
various social action organizations (Assogeva PACA from
1996 to 2000, CTPC PACA from 2000 to 2007, the Board of
the La Couronne holiday centre from 2006 to 2009), federal
manager and leader of the financial services collective
of the CGT federation since 2004. She was an elected
representative at the CGT labour union Bouches-du-Rhône
departmental union office from 2002 to 2008, before sitting
on its executive Committee until 2010.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Laurence Franceschini has been a member of the
La Poste Board of Directors since 24 June 2009. Born
in 1957, Laurence Franceschini is a graduate from the
Institut d'études politiques de Paris and former student
of the ENA. A Board member of the highest ranking,
she worked as Head of Legal Services on the Conseil
supérieur de l’audiovisuel (CSA), then Assistant Manager of
audiovisual communications at the IT and communications
legal Department. In April 2004, she was appointed
Deputy Director at the office of the Ministry of Culture and
Communications. From January 2007 to January 2010,
she worked as Head of Media Development at the Prime
Minister’s office and was then appointed Managing Director
of media and cultural industries at the Ministry of Culture
and Communications.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Current terms of office outside of Le Groupe La Poste
Board member of France Télévisions
Board member of Radio France
Board member of Foreign Audiovisual
Board member of Agence France-Presse
Board member of the Cinema and Cultural Industry
Financing Institute (IFCIC)
Board member of the National Library of France
Board member of the Arte France TV Channel
Board member of the National Centre of Cinema (CNC)
Board member of the National Centre of Books
Board member of the Bibliothèque publique d’information
Jean-Michel Hubert has been a member of the La Poste
Board of Directors since 20 March 2003. Born in 1939, he
is a former student of the École polytechnique and École
nationale supérieure des télécommunications. The first years
of his career were spent at the Centre National d'Études
des Télécommunications (CENT), then the Délégation à
l’informatique (DINFO). He later worked for nearly 10 years
as Head of Technical Services, then Head of Financial,
Property and Social Affairs at the Ministry of the Interior.
In September 1986, he rejoined the City of Paris where he
became Secretary-General in 1992. In January 1997, he was
appointed Chairman of the Telecom Regulatory Authority
(ART) for a six-year term of office. He was subsequently
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Vice Chairman of the Conseil général des technologies de
l’information (CGTI) as well as Deputy Ambassador for the
World Summit on the Information Society. From 2003 to
2007, he was Deputy Chairman of the Conseil stratégique
des technologies de l’information (Strategic Committee for
Information Technologies) (CSTI). From 2006 to February
2013, he was, alongside the Prime Minister, Deputy
Chairman of the Strategic Committee for Digital Issues
(CSN), and he was also a member of the Supervisory Board
of the future capital expenditure programme.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Jean-Pierre Jouyet has been a member of the Board
of Directors since 19 July 2012. Born in 1954, he holds a
diplôme d'études approfondies (pre-doctorate) in public
law. He is also a graduate of the Institut d'études politiques
de Paris (IEP) and a former student of the École nationale
d'administration (ENA). Appointed as General inspectorate
of Finance upon leaving ENA, he then was Head of the
Tax Legislation Office in the French Ministry of Finance.
From 1988 to 1991, he was the director at the office of
the Ministry of Industry and Regional Planning. In 1991,
he became Deputy Head of the Office of the President of
the European Commission, then Head of the Office from
1994 to 1995. From 1995-1997, he was a partner at the law
firm Jeantet Associés then he was Deputy Director of the
Office of the Prime Minister from 1997 to 2000. He then
held the position of Director of the Treasury, then became
ambassador in charge of international economic affairs in
2004. Briefly Chairman of Barclays France in 2005, he was
then appointed as the Department Head of the General
inspectorate of Finances, a position he held until 2007.
In May 2007, he became Secretary of State in charge of
European affairs with the Minister of Foreign and European
Affairs. At the end of 2008, he took the helm of the Autorité
des marchés financiers (French Financial Markets Authority).
On 19 July 2012, he was appointed as Managing Director of
Caisse des Dépôts et Consignations.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Current terms of office outside of Le Groupe La Poste
Managing Director of Caisse des Dépôts et Consignations
Chairman of the Management Board of the Fonds de
réserve pour les retraites
Chairman of the Board of Directors of BPI
Board member of Institut Pasteur
Board member of CNP Assurances
Philippe Lemoine has been a member of the La Poste
Board of Directors since 26 June 2009, after having been
a director of La Poste from 2004 to 2007. Born in 1949, a
graduate of IEP Paris, holding a degree in law, winner of
the civil law open competition, and holding a postgraduate
degree in economics, he started his career as a researcher.
Whilst he was an engineer at the National Institute for
Research in Computer Science and Control (INRIA), he
also studied sociology at the School for Advanced Studies
in the Social Sciences (EHESS). In 1976, he was called to
the Ministry for Industry to assume responsibility for the
“Computerisation of Society” project and helped draw up
the Nora-Minc report. He subsequently joined the office of
Norbert Segard and then Pierre Aigrain (“Technology and
Society” report). In 1981, he was appointed Government
representative at CNIL (1982-1984); in 1982, he took over
the “Technology, Employment, Work” programme, becoming
Vice Chairman of the national Committee at the Ministry
for Research. At the end of 1984, he joined the Galeries
Lafayette group. In 1998, he was named Co-Chairman of
the Group’s Management Board (1998-2005). From 1999
to 2009, he sat as a member with qualified status on the
Board of CNIL. Since 1995, Mr Lemoine has been Chairman
and managing director of the LaSer group, a European
intermediation and customer relations company that
includes loans in its business model. Philippe Lemoine
chairs the Board of Directors of the Collège de France
Foundation, the Maison des sciences de l’homme Foundation
and the Fondation Franco-Américaine. He is also Chairman
of the “Open Innovation Committee” working group at
Medef, Fondation Internet Nouvelle Génération (FING),
Chairman-Founder of the Forum d’Action Modernités (FAM)
and co-chairman of the Supervisory Board of GS1 France.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Current terms of office outside of Le Groupe La Poste
Chairman and Managing Director of LaSer
Board member of Unincofra
Chairman of the Board of Directors of LaSer Cofinoga
Chairman of the Board of Directors of Sygma Bank
Chairman of GMGL
Vice-chairman of the Supervisory Committee of BHV
Sole board member of GIE Recherche Haussmann
Sole board member of GIE LaSer Archives
Chairman of the Fondation LaSer Initiatives Solidaires
Chairman of the Open Innovation Committee of Medef
Chairman of the FING Foundation
Board member of the Collège de France Foundation
Board member of the Maison des sciences de l’homme
Foundation
Board member of the Fondation Franco-Américaine
Chairman of the Forum d’Action Modernités Foundation
Co-chairman of the Supervisory Board of GS1 France
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Chairman's report on corporate government, internal control procedures and risk management in respect of 2013AppendixA1 A
Terms of office expired in the last five years
Board member of Monoprix
Permanent representative of LaSer Cofinoga on the
Board of Directors of Fidecom
Co-Chairman of the Management Board of the Galeries
Lafayette group
Chairman of the Association Réseau Échangeur
Permanent representative of LaSer Cofinoga on the
Board of Directors of Médiatis
Board member of Telemarket
Board member of BNP Paribas Personal Finance
Non-voting board member of GDF-Suez
Board member of établissement public de coopération
culturelle Le 104 (cultural cooperation public sector
company)
Michel Lersy was elected by staff on 16 November 2010
from a list sponsored by the CGT. He was born in 1961. After
working at La Poste as a seasonal employee, he passed the
competitive examination for permanent employment and
was posted to the Paris Gare du Nord sorting office in 1982.
Three months later, he passed the AEX-SG competition and
became a postman on the Ambulants de l’Est line, before
returning to Paris Nord in September 1983. He joined the
Metz sorting office in 1985 before being assigned to the
Industrial Mail Platform in Lorraine. He is now a level-one
technical and management agent. An active member of the
CGT since 1982, he was secretary of the union section of
the Metz sorting office from 1987 to 1990, elected General
Secretary of the CGT-PTT departmental union of Moselle
in 1994, then Regional Secretary of Lorraine in 2001—a
position he held until 2010. He was also a member of the
Federal Department from 2001 to 2004, then from 2008
to 2010, and a Director then Chairman (1992-1994) of a
Government canteen in Metz and FNR Regional Delegate
from 1993 to 1997. Elected to the Executive Committee of
the CGT’s departmental union for Moselle until 2010, he
served as Secretary from 2004 to 2008.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Marie-Pierre Liboutet has been a member of the La Poste
Board of Directors since 9 May 2001. Born in 1956 and
holding a degree in English, she joined La Poste as an
inspector in 1979. A business manager in Vesoul until
1984, she was transferred to Haute-Vienne in 1985. At the
CFDT Post Office and Telecommunications Federation, she
was National Secretary for La Poste and Civil Service from
1990 and 1994 and served as General Secretary from 1994
to 2001. She represented the federation at the National
Confederal Office from 1995 to 2001. At this point, she
returned to La Poste as Head of Communications for the
Haute-Vienne region. In 2008, Ms Liboutet became Head of
Communications for the Local Operational Mail Department
of Limousin.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Françoise Malrieu has been a member of the La Poste
Board of Directors since 17 December 2005. Born in 1946, a
graduate of HEC and the Financial Analysis Training Centre
(CFAF), she started her career at BNP in 1969, working as
a financial analyst. Vice President (1974) responsible for
monitoring equity investments in the BNP group’s corporate
banking arm, Banexi, she was appointed Assistant Manager
of the financial analysis Department in 1979, heading this
Department in 1982. At the same time, she was elected
General Secretary then Vice President of the Société
française des analystes financiers (SFAF). She continued
her career in mergers and acquisitions at Lazard Frères
(1987-2001), where she was appointed Director-Manager,
then Partner-Manager leading the M&A team, before
joining Deutsche Bank (2001-2003) as Managing Director
in Paris and London, as head of the corporate finance
team for France and consultant banker, before moving
to Aforge Finance where she was Partner-Manager until
2009. Ms Malrieu was appointed Director (2008) and then
Chairperson of the Board of Directors (2010) of the Société
de Financement de l’Économie Française (SFEF). During
2010, she was the deputy inspector of market professionals’
remuneration. Since May 2013, she has been a member
of the Board of Directors of the Institut Français des
Administrateurs (IFA).
Current terms of office within Le Groupe La Poste
Board member of La Poste
Current terms of office outside of Le Groupe La Poste
Chairperson of Société de Financement de l’Économie
Française Board of Directors
Board member of Aéroports de Paris
Board member of GDF Suez
Member of the Supervisory Board of Bayard Presse S.A.
Terms of office expired in the last five years
Partner-manager of Aforge Finance
Deputy inspector of market professionals’ remuneration
485Registration document 2013 / LE GROUPE LA POSTE
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Appendix
res 13dix A1
Sophie Mantel has been a member of the La Poste Board
of Directors since 26 September 2013. Born in 1965, she
is a graduate of the École polytechnique (1987) and the
ENSAE (École nationale de la statistique et de l’administration
économique—1989), Sophie Mantel is the Controller-General
of Economics and Finance. She began her career in the
Forecasting Department (1989-1992), before joining the
Budget Department where she managed the 6C offices
(pension plans, pension funds, etc.), then 2A offices (wage
policy and public sector employment, etc.). She was Special
advisor to the Budget Director in 1999, then in 2001, she
joined the organic law project team and was responsible
for the implementation of organic law pertaining to finance
law (LOLF) in terms of staff expenditure. In 2006, Sophie
Mantel became the Head of the management systems
processes and functionalities Department in the DGME
(State Modernisation Executive Management before joining
the Budgetary Audit and Internal Control Mission (MACIB)
where she took over management in 2011. Since August
2013, she has been Head of the Department, assistant to
the Director of Budget.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Current terms of office outside of Le Groupe La Poste
Board member of La Française des Jeux
Board member of PMU
Board member of Institut Pasteur
Christian Martin has been a member of the Board of
Directors of La Poste since 24 January 2013. He was born in
1955, and is a graduate of the Institut d’études politiques de
Paris, holds an engineering degree from the École nationale
des ponts et chaussées, and is a former student of the ENA.
Auditor at Cour des comptes/French Court of Auditors (1987-
1991), from 1991-1992 he was deputy director of the Office
of the Ministry of Agriculture, then Board member of the
Office of the Ministry in charge of Parliament Relations,
Government spokesperson (1992-1993). Referendum
Advisor (1991-2004), he was Mayor of Draguignan (Var) from
1995 to 2001, Regional Advisor and Deputy Vice-Chairman
of Culture for the Provence-Alpes-Côte d’Azur region from
1998 to 2010, and Chairman of société d’économie mixte for
the Provence-Alpes-Côte d’Azur region from 1998 to 2004.
He has been Chief-Advisor at the Cour des comptes/French
Court of Auditors since 2004 in the 4th Chamber, responsible
for the "public safety" segment.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Jacques Pélissard has been a member of the La Poste
Board of Directors since 17 December 2005. Born in 1946,
a former student at the Law Faculty in Lyon, and a graduate
of the Institut d’études politiques de Paris (1970), he was
awarded a Bachelor of Arts from the University of Lyon in
1971. From 1971 to 1974, he taught at École supérieure de
commerce in Lyon (economic law) before becoming a lawyer
in Lyon, then Lons-le-Saunier, until July 1993. Since 1989,
he has been mayor of Lons-le-Saunier (Jura prefecture).
He has been Chairman of the communauté d’agglomération
(Conurbation authority) of the Lons-le-Saunier basin
since 2000. He has been a Deputy of Jura (member of the
Finance Commission of the National Assembly) since 1993.
Since 18 November 2004, Jacques Pélissard has been the
Chairman of the French Mayors Association. He is also a
member of the Local Finance Committee.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Michel Pesnel was elected by staff on 16 November 2010.
Born in 1952, he studied philosophy before sitting the
competition to become a Post Office and Telecoms inspector
in 1979. He was subsequently assigned to the Institut
national de gestion in Évry, the La Poste Regional division
in Basse-Normandie and the École nationale supérieure
des postes et des télécommunications (ENSPTT), as head
of ongoing training Mr Pesnel holds a master’s degree in
defence and was a former auditor at IHEDN. He is also a
defence advisor to the Prefecture of Basse-Normandie. A
member of the executive Committee of FO Communication
since 1990, he became National Secretary in 1993, then
Deputy General Secretary. He has sat on the Conseil
supérieur de la fonction publique d’État and Supervisory
Board of La Poste’s employee savings programme.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Odile Renaud-Basso has been a member of the La Poste
Board of Directors since 12 December 2013. Born in 1965,
she is a graduate from the Institut d'études politiques de
Paris and former student of the ENA (class of Jean Monnet).
After beginning her career as an auditor at the Cour des
comptes / French Court of Auditors (1990-94), she joined the
Department of Treasury where she held positions pertaining
to international, industrial and financial issues. In 2005,
she was appointed Director of the European Commission
(Directorate general for economic and financial affairs)
and continued her career in the European spheres. In
early 2010, she became Assistant Head of the office of the
President of the European Council, Herman van Rompuy.
In May 2012, she became Deputy Director of the office of
the Prime Minister, Jean-Marc Ayrault. Since 1 September
2013, she has been Deputy Managing Director of the Caisse
des Dépôts group and Director of Savings funds.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Current terms of office outside of Le Groupe La Poste
Board member of CNP-Assurances
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Antoine Saintoyant has been a member of the La Poste
Board of Directors since 22 April 2013. He was born in 1977
and is a graduate of the Institut d’études politiques de Paris;
Antoine was appointed as business advisor in 2003 upon
graduating from ENA (René Cassin class). He was Deputy
Head of Multifin 4 (international financial system) in the
French Treasury and Economic Policy Department in Bercy
(2003-2007), and then acted as an advisor (financial and
institutional services, banks, stock market, and insurance)
for "Financial and Monetary Affairs" at the Permanent
Representation of France at the European Union in Brussels
(2007-2009). While he was head of banks and credit
institutions at the French General Treasury and Economic
Policy Directorate, which became the French Treasury (in
March 2010) between 2009 and 2012, he was also Deputy
Secretary-General of the French Financial Legislation
and Regulation Advisory Council. Since July 2012, Antoine
Saintoyant has been head of the C1 office (La Poste and
Orange) of the Agence des participations de l'État (APE) at the
Ministry of the Economy and Finance, before being named
Director of equity investments, deputy-director of Aviation
and Defence in August 2013.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Current terms of office outside of Le Groupe La Poste
Board member of Orange
Board member of Société de Financement Local (SFIL)
Board member of ODAS
Terms of office expired in the last five years
Board member of SPPE
Franck Silvent has been a member of the Board of Directors
of La Poste since 22 April 2013. He was born in 1972, and
is a graduate of Institut d’études politiques de Paris; Frank
joined the General Inspectorate of Finance in 1998 upon his
graduation from ENA (Valmy class). He was seconded as
Deputy Director of Strategy, Finance, Management Control
and Accounting at Caisse des Dépôts et Consignations
(2002-2005). Director of Financial Development Strategy
and member of the Management Board (2005-2009), then
Deputy Chief Executive Officer of Compagnie des Alpes
(March-October 2009), he was then Associate Managing
Director of this group (2009-2012). Since January 2013,
Franck Silvent has been Director of Strategy, Sustainable
Development and Research for Caisse des Dépôts. In May
2013, he was appointed Director of the Finance, Strategy,
Subsidiaries and International division of the Caisse des
Dépôts group. In October 2013, he became Director of the
Finance, Strategy and Equity Investments division of the
Caisse des Dépôts group.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Current terms of office outside of Le Groupe La Poste
Board member of Bpifrance Participations
Board member of Bpifrance Investissements
Board member of BPI Groupe
Board member of CNP Assurances
Board member of Icade
Board member of Transdev group
Terms of office expired in the last five years
Board member of Santoline
Board member of Compagnie du Mont-Blanc
Board member of Lafuma
Board member of Société du Parc du Futuroscope
Associate Managing Director of La Compagnie des Alpes
Chairman of the Supervisory Board of La Compagnie des
Alpes—Domaines Skiables
Vice-Chairman of the Supervisory Board of Domaine
Skiable de Griffe
Vice-Chairman of the Supervisory Board of Domaine
Skiable de Flaine
Member of the Supervisory Board of Looping Holding
Board member of Premier Financial Services
Board member of Swissalp
Board member of Belpark
Board member of Grévin et Compagnie
Board member of Musée Grévin
Board member of Safari Africain de Port-Saint-Père
Board member of Valbus
Philippe Wahl has been a member of the La Poste Board
of Directors since 1 August 2013. He was born in 1956,
and is a graduate of Sciences-Po Paris, a former student
of the ENA, and holds a Postgraduate Research Degree in
Economics. He began his career as an auditor and maître
des requêtes (Master of Requests) at the French Council of
State. Special advisor to the Chairman of the COB (1986), in
1989 he joined the office of Michel Rocard, Prime Minister,
as technical advisor for economic, financial and tax affairs.
Advisor to the Chairman of Compagnie Bancaire (1991),
then Deputy Chief Executive Officer (1994), in 1997 he was
appointed Head of Specialist Financial Services at Paribas.
In 1999, he became Managing Director of Caisse Nationale
des Caisses d’Épargne. Through this, he became Chairman
of Sopassure and of the Board of Directors of Écureuil
Assurances IARD, and a member of the Supervisory
Boards of CDC Ixis and CNP Assurances. Philippe Wahl
was appointed Managing Director of the Havas group in
2005, and became Vice-Chairman of the Bolloré group in
2006. After joining the Royal Bank of Scotland as Managing
487Registration document 2013 / LE GROUPE LA POSTE
Chairman's report on corporate government, internal control procedures and risk management in respect of 2013
Appendix
res 13dix A1
Director for France in 2007, he was appointed as an Advisor
to the Global Banking and Markets Board in London and
Managing Director for France, Belgium and Luxembourg in
2008, before being appointed Chairman of the Management
Board of La Banque Postale and Deputy Chief Executive
Officer of Le Groupe La Poste in January 2011. Philippe
Wahl became CEO of Le Groupe La Poste in September
2013, and became Chairman of the Supervisory Board of
La Banque Postale in October of that year.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Chairman of the Supervisory Board of La Banque Postale
Permanent representative of Le Groupe La Poste and
director of GeoPost, Sofipost and Poste Immo
Director of Sopassure
Current terms of office outside of Le Groupe La Poste
Director of CNP Assurances
Terms of office expired in the last five years
Chairman of the Management Board of La Banque
Postale
Board member of Société de Financement Local (SFIL)
Chairman of La Banque Postale Financement
Supervisory Board, of XAnge Private Equity, of La Banque
Postale Gestion Privée and of La Banque Postale Asset
Management
Chairman of La Banque Postale Assurance Santé Board
of Directors, of La Banque Postale Prévoyance and of
La Banque Postale Assurances IARD
Chairman and CEO of SF2 and Sopassure
Member of the Supervisory Board of Fonds de Garanties
des Dépôts
Managing Director of Royal Bank of Scotland PLC
Vice Chairman of the Supervisory Board of the Société
Financière de Paiements
Élyane Zarine has been a member of the Board of Directors
of La Poste since 17 December 2005. She was born in 1941.
After working in different administrative positions in film
and credit sales from the age of 20, she joined Air France
in 1968, where she worked as a salesperson, manager,
training officer, coordinator, and head of recruitment at
the Charles-de-Gaulle HR Department for 30 years. In
1998, following a company audit at the Centre of Obstetric
Surgery in Hauts-de-Seine, she took over the running of this
clinic. From 2000 to 2003, she was Head of Administration
and Human Resources at a medical analysis laboratory.
From 2003 to 2011, she sat on the Boards of Directors
of several social housing companies and has been the
Chairperson of housing committees. Chairperson of
the Organization générale des consommateurs (General
Consumer Organization—Orgeco) from 2008 to 23 May
2012, she was chairperson of Orgeco Paris. In October
2010, Minister Hervé Novelli appointed her as chairperson
of the Commission de la médiation de la consommation
(Commission of Consumption Mediation—CMC) and board
member of Credoc.
Current terms of office within Le Groupe La Poste
Board member of La Poste
Current terms of office outside of Le Groupe La Poste
Chairperson of CMC
Chairperson of ORGECO Paris
Board member of the Institut national de la consommation
Board member of Credoc
Board member of CISS, CNC and CEC
Terms of office expired in the last five years
SADIF
ASH, ASH GIE
Orgeco
Registration document 2013 / LE GROUPE LA POSTE488
489Registration document 2013 / LE GROUPE LA POSTE
A2Statutory Auditors’ report, prepared
in accordance with Article L. 225-235
of the French Commercial Code,
on the report of the Chairman
of the Board of Directors
of the company La Poste
Registration document 2013 / LE GROUPE LA POSTE490
Statutory Auditors’ report, prepared in accordance with Article L. 225-235 of the French Commercial Code, on the report of the Chairman of the Board of Directors of the company La PosteA2
Statutory Auditors' report, prepared in accordance
with Article L.225-235 of the French Commercial Code
(“Code de commerce”), on the report prepared by the
Chairman of the Board of Directors of LA POSTE
Year ended 31 December 2013
To the Shareholders,
In our capacity as Statutory Auditors of LA POSTE and in accordance with Article L.225-235 of the French Commercial Code
(“Code de commerce”), we hereby report on the report prepared by the Chairman of your company in accordance with Article
L.225-37 of the French Commercial Code for the year ended 31 December 2013.
It is the Chairman's responsibility to prepare, and submit to the Board of Directors for approval, a report on the internal
control and risk management procedures implemented by the company and containing the other disclosures required by
Article L.225-37 particularly in terms of the corporate governance measures.
It is our responsibility:
to report to you on the information contained in the Chairman's report in respect of the internal control and risk
management procedures relating to the preparation and processing of the accounting and financial information, and
to attest that this report contains the other disclosures required by Article L.225-37 of the French Commercial Code (“Code
de commerce”), it being specified that we are not responsible for verifying the fairness of these disclosures.
We conducted our work in accordance with professional standards applicable in France.
Information on the internal control and risk management procedures relating to the preparation
and processing of accounting and financial information
These standards require that we perform the necessary procedures to assess the fairness of the information provided in
the Chairman's report in respect of the internal control and risk management procedures relating to the preparation and
processing of the accounting and financial information. These procedures consisted mainly in:
obtaining an understanding of the internal control and risk management procedures relating to the preparation and
processing of the accounting and financial information on which the information presented in the Chairman's report is
based and existing documentation;
obtaining an understanding of the work involved in the preparation of this information and existing documentation;
determining if any significant weaknesses in the internal control procedures relating to the preparation and processing of
the accounting and financial information that we would have noted in the course of our engagement are properly disclosed
in the Chairman's report.
On the basis of our work, we have nothing to report on the information in respect of the company's internal control and risk
management procedures relating to the preparation and processing of accounting and financial information contained in the report
prepared by the Chairman of the Board in accordance with Article L.225-37 of the French Commercial Code (“Code de Commerce”).
491Registration document 2013 / LE GROUPE LA POSTE
Statutory Auditors’ report, prepared in accordance with Article L. 225-235 of the French Commercial Code, on the report of the Chairman of the Board
of Directors of the company La Poste A2
Other disclosures
We hereby attest that the Chairman's report includes the other disclosures required by Article L.225-37 of the French
Commercial Code (“Code de commerce”).
Paris La Défense and Courbevoie, on 21 February 2014
The Statutory Auditors
KPMG AuditA department of KPMG S.A.
Mazars
François Caubrière Isabelle Goalec Guy Isimat-Mirin Dominique Muller
Partner Partner Partner Partner
Registration document 2013 / LE GROUPE LA POSTE492
493Registration document 2013 / LE GROUPE LA POSTE
A3
Scope and methodology of reporting 494
Social information 495
Environmental Information 500
Information pertaining to societal commitments in favour of sustainable development 503
Report by the Statutory Auditors , designated independent third parties,
on the consolidated social, environmental and societal information
contained in the management report 506
Summary of information pertaining
to the social and environmental
consequences of the business
activities, and societal commitments
in favour of sustainable development
Registration document 2013 / LE GROUPE LA POSTE494
Summary of information pertaining to the social and environmental consequences of the business activities, and societal commitments in favour of sustainable developmentScope and methodology of reportingA3
Articles L. 225-100, L. 225-102-1, R. 225-104 and R. 225-105 of the French Commercial Code
Since 2003, the year when it adhered to the United Nations
Global Compact, Le Groupe La Poste has demonstrated
its ongoing commitment to Environmental and Social
Responsibility.
The ambition to “make Le Groupe La Poste a long-term
creator of value and social ties” is now based on two
commitments: conducting our business activities in an
increasingly responsible way, by incorporating Social and
Environmental Responsibility into each stage of the process
and in the everyday behaviour of postal workers, being a
player who is committed to shared sustainable performance
by involving players in society, with a view to take action in
order to make collective projects a success and share this
ambition with stakeholders.
The Group has published a sustainable development
report, or SER report, since 2004, which summarizes its
main commitments in its annual report and, since 2010,
has integrated the summary of its information regarding
the social and environmental consequences of its business
activities in its registration document and management
report.
The assessment of the annual reporting system and
of the update on the progress in the Group's CSR policy
enable the Group to determine the targets that will be
subject to regular monitoring in the Chairman's indicators
(approved by the Executive Committee on an annual basis),
and those that the Chairman and Chief Executive Officer
will apply to the Business Lines. These targets are the
subject of a review three times a year, as part of the extra-
financial results assessment, which has been included in
the financial performance reviews since 2011 (meetings
between the Chairman and Chief Executive Officer, the
Business Line Directors, and the Support Departments,
which aim to review the performance of every department
concerned).
The Group has had its extra-financial indicators checked
since the 2009 financial year; it is gradually broadening both
the scope of the indicators published, as well as the scope
subject to the checks.
Scope and methodology of reporting
Given the delays in producing and checking the indicators,
the consolidation scope for the 2013 financial year is
identical to that of the previous year, and includes La Poste,
La Banque Postale and Mediapost SAS.
The other Group subsidiaries are the subject of projects
aimed at computerizing extra-financial reporting processes,
which will enable the consolidation scope to be broadened
over the coming years. For the 2013 financial year, the
manual inputting of results did not make it possible to
consolidate these subsidiaries in time for the balance sheet
date.
The three companies taken into account, namely La Poste
S.A., La Banque Postale and Mediapost SAS, account for
87% of FTE (Full Time Equivalent) employees and 74% of the
Group's operating income (ratios calculated on the scope of
the fully consolidated companies).
The social indicators are developed in accordance with the
methodology used for the social report.
The environmental indicators are based on the G3 guidelines
for sustainable development reporting guidelines issued
by the Global Reporting Initiative, the methodology used in
the ADEME Bilan Carbone® tool, and on consumption or
emission factors provided by certain transport operators
and the International Electricity Agency.
The indicators are described in a reporting memorandum
drawn up by the Group’s Social and Environmental
Responsibility Department, which is in charge of the
reporting process. This memorandum specifies the
definition of the indicators, the method for gathering the
information, the checks performed, and the data collection
and approval responsibilities.
The methodological additions for indicators relating to
the workforce, the number of days of industrial action, the
frequency and severity of accidents, the number of days
of absence, training hours, remunerations, consumption of
paper, energy and water as well as purchasing amounts
are presented below in the document body and the table
footnotes.
495Registration document 2013 / LE GROUPE LA POSTE
Summary of information pertaining to the social and environmental consequences of the business activities, and societal commitments in favour of sustainable development
Social information A3
Social information
Employment
Total staff numbers of the Group
Le Groupe La Poste's total staff numbers amounted to 266,369 people on average in 2013, on a full-time equivalent basis,
a 0.1% decrease compared with 2012. La Poste, its subsidiaries and the companies that it controls had 263,032 employees.
This change resulted from normal natural departures, partially replaced.
The workforce is divided up as follows:
BREAKDOWN OF THE GROUP'S HEADCOUNT ON A FULL-TIME EQUIVALENT BASIS, BY CONTINENT (A)
Africa America Asia Europe Oceania Total
0.8% 0.3% 0.0% 98.9% 0.0% 100.0%
FranceOther countries in Western
Europe (b)Eastern European
countries and Russia Total workforce in Europe
92.4% 5.2% 1.3% 98.9%
97.8% of the Group’s workforce is located in Western Europe
BREAKDOWN OF THE GROUP'S HEADCOUNT ON A FULL-TIME EQUIVALENT BASIS, BY COMPANY (A)
Parent company La Poste (c) 83.2%
Subsidiaries consolidated in the social indicators La Banque Postale and Mediapost S.A.S. 3.6%
Scope covered by the social indicators (d) 86.8%
Other subsidiaries 13.2%
Total 100.0%(a) Source: consolidated financial statements of La Poste and of the (fully-consolidated) subsidiaries under its control; the workforce is expressed in
full-time equivalents.
(b) Unesco classification: Andorra, Austria, Belgium, Denmark, Finland, Germany, Greece, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Malta,
Monaco, the Netherlands, Norway, Portugal, San Marino, Spain, Sweden, Switzerland, United Kingdom, the Holy See, as well as France which is
separate in the table.
(c) Including the employees made available to La Banque Postale under the form of a shared resources unit (6.4% of the Group's employees).
(d) Unless otherwise specified at the level of the indicator.
Registration document 2013 / LE GROUPE LA POSTE496
Summary of information pertaining to the social and environmental consequences of the business activities, and societal commitments in favour of sustainable developmentSocial informationA3
Breakdown of and change in the physical workforce at 31 December 2013
Indicators
La Poste
La Poste, La Banque Postale
and Mediapost SAS.
2011 2012 2013 2013
Total headcount as at 31/12 (individuals) (a) 246,057 243,172 238,699 253,055
Of which on fixed-term contracts 15,770 16,491 16,912 17,496
Women 51.0% 51.2% 51.5% 50.9%
Men 49.0% 48.8% 48.5% 49.1%
Breakdown of workforce by age, excluding
limited-term contracts
Under 25 years 1.7% 1.6% 1.6% 1.7%
25-29 years old 5.9% 5.4% 5.2% 5.3%
30-39 years old 20.1% 19.7% 19.3% 19.3%
40-49 years old 31.5% 30.0% 28.6% 28.4%
50-59 years old 38.5% 40.1% 41.4% 40.5%
60 and older 2.3% 3.2% 3.9% 4.8%
Average number of full-time employees 226,502 221,657 218,941 228,434
Number of recruits on permanent contracts 5,123 5,211 5,298 7,320
Number of redundancies 1,053 885 818 1,478
(a) Comprises civil servants and employees with open-ended and fixed-term contracts. Civil servants seconded to subsidiaries under employment
contracts are counted as permanent employees in these subsidiaries’ headcount by agreement.
Remunerations and their change
Indicators
La Poste
La Poste, La Banque Postale and Mediapost SAS
2011 2012 2013 2013
Average gross annual salary (a) €27,578 €28,098 €28,603 €28,739
Change n/n - 1 + 2.7% + 1.9% +1.8% +2.0%
Amount paid for profit-sharing from the
previous year €54.3 million €94.3 million €73.6 million €76.5 million
Number of employees with a Group savings
plan (PEG) or a collective retirement savings
plan (PERCO) (b) 56,666 59,341 62,452 72,408
Net contribution paid by the Company €14.0 million €14.0 million €16.4 million €18.4 million
Percentage of socially responsible investments
in the PEG and PERCO assets 65.5% 57.0% 47.0% 47.1%
(a) The indicator is now calculated based on basis of the gross remuneration paid. The 2011 amounts have been updated accordingly. The average
remuneration includes remuneration items paid monthly, but does not include variable bonuses. The headcount taken into account is the average
workcount in FTE for the year.
(b) La Poste and some subsidiaries such as Mediapost SAS are members of the Group Savings Plan (PEG) and of the Group's Collective Retirement
Savings Plan (PERCO). La Banque Postale has its own employee savings schemes (PEG and PERCO).
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Social information A3
Organization of work
Work organization in the Group's three companies complies with French labour laws and is based on a weekly average of 35 hours
for day workers and 32 hours for night workers. Overnight work does not concern La Banque Postale or Mediapost SAS.
Indicators
La Poste
La Poste, La Banque Postale and Mediapost SAS
2011 2012 2013 2013
Percentage of part-time employees in the
workforce at 31/12 (individuals, excluding
fixed-term contracts) 11,25% 11,22% 10.69% 13.89%
Percentage of employees in the workforce
working night shifts at 31/12 (individuals,
excluding fixed-term contracts) (a) 2.92% 2.68% 2.63% 2.48%
Number of days’ absence due to sickness
(in calendar days) 5,033,430 4,978,614 4,999,784 5,178,621
Number of paid overtime hours NA 4,571,137 2,506,114 2,618,473
(a) Only La Poste is concerned by night shifts, regardless of their length.
Employee relations
The way in which the dialogue with employees is organized
meets the requirements of the French Labour Code for
La Poste and its French subsidiaries. The organization
method is the subject of regular negotiations. La Poste’s
employee representative bodies are mostly governed by
public sector legislation, with the exception of CHSCT,
which been governed by the rules of the French Labour
Code since 16 November 2011, in accordance with the law.
In accordance with the Quality of Life at Work Agreement
of January 2013, La Poste is working on setting up a
collective body in 2014, the scope and remit of which will
be determined following the current negotiations with trade
union organizations.
Indicators
La Poste
La Poste, La Banque Postale and Mediapost SAS
2011 2012 2013 2013
Number of days lost due to strikes NA NA 143,844 143,844
(a) This is the number of days of work stoppageresulting from local or nationwide strikes recorded in the payroll system.
2013 indicator La PosteLa Banque
PostaleMediapost
SAS
Total number of employee agreements signed
(including amendments) 7 4 5
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Summary of information pertaining to the social and environmental consequences of the business activities, and societal commitments in favour of sustainable developmentSocial informationA3
Monitoring of the commitments made as part of the agreements in effect in 2013
La Poste
Goals relating to access to occupational health services
were defined as part of the Quality of Life at Work
Agreement: 90% of postal workers have undergone a
medical check-up in the last two years.
1,390 permanent hires resulting from fixed-term
contracts were made in 2013, out of a commitment of
3,000 hires during the period between 2013 and 2015.
La Banque Postale
A dynamic diploma-based policy that applies to all
employees: over 50% of the graduates are over 45.
Mediapost SAS
33% increase in the number of disabled workers between
the end of June 2012 and the end of June 2013; the total
number is 717.
40.4% of women executives compared with 38% two
years earlier.
Health and safety
The health and safety at work conditions for La Poste and
its French subsidiaries are determined with the framework
of French employment law.
The Quality of Life at Work Agreement signed on 22 January
2013 sets out La Poste’s goals in this area (being an
exemplary company in terms of well-being at work) and
tangible undertakings, which specifically include medical
supervision of postal workers, training for new managers,
the introduction of local HR officers, and the development
of National Health and Safety at Work delegations within
La Poste. Negotiations on health at work were also
launched; these negotiations deal with risk-prevention
issues (physical and psycho-social risks), physical hardship,
maintaining people at work, and supporting people who are
experiencing health problems. The negotiations also deal
with specialized functions (occupational health services,
risk preventers, and social security assistants) and
employee representative bodies. In addition, an agreement
on the implementation of teleworking at La Poste was
signed in June 2013.
Indicators
La Poste
La Poste, La Banque Postale and Mediapost SAS
2011 2012 2013 2013
Number of days of absence due to workplace
or route accidents or occupational illness (a) 772,418 773,654 733,120 750,822
Workplace accidents with time off:
Frequency (b) 26.08 26.42 25.2 25.4
Severity (c) 1.28 1.3 1.27 1.28
(a) This indicator is calculated on the basis of the number of individuals employed (excluding fixed-term contracts). The days of absence are counted in
calendar days.
(b) Number of workplace accidents (excluding commuting) per million hours worked. The hours worked are calculated on the basis of the average
workforce multiplied by the number of hours worked per annum.
(c) Number of workplace accidents with time off (excluding commuting) per thousand hours worked. The days lost for workplace accidents are counted in
calendar days.
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Social information A3
Training
The changes in jobs and in the Group are leading it to increase training initiatives, which target:
developing skills relating to mastering the position occupied;
supporting professional development projects.
La Poste parent company committed to boosting access to training in 2013. This means that 78.5% of postal workers benefited
from at least one training initiative (52% in 2012).
Indicators
La Poste
La Poste, La Banque Postale and Mediapost SAS
2011 2012 2013 2013
Total number of training hours (a) 4,210,752 4,129,997 5,120,801 5,198,652
Number of employees who followed at least
one training course during the year (b) NA NA 78.5% 75.0%
(a) Total number of internal and external training hours followed by all employees (total workforce present during the year, including part-time students).
Training hours under study leave (CIF, CFP) or accredition of prior learning (VAE) and skills audits are not taken into account as training actions.
Courses are taken into account for the year in which they are completed.
(b) The employee base corresponds to the average workforce excluding employees absent for more than six months.
Equal treatment
La Poste and the French subsidiaries concerned regularly negotiate employment agreements setting out the measures taken
to promote gender equality, disabled persons, young people and seniors.
Indicator 2011 2012 2013
Proportion of women on the Management Committee 25.96% 26.97% 31.41%
The members of the Management Committee hold strategic
positions at La Poste and its French subsidiaries, as defined
by the Group’s Executive Committee. The proportion
of women increased significantly in 2013, reflecting
the ongoing efforts of La Poste and its subsidiaries to
encourage diversity at the highest level. The goal is for
women to make up 30% of the Management Committee
by 2015.
Indicator
La Poste
La Poste, La Banque Postale and Mediapost SAS
2011 2012 2013 2013
Difference between the remuneration
of men and women (a)
State employees -3.2% -3.2% -3.1% Only applies to La Poste
Employees -1.7% -1.3% -1.2% -2.8%
(a) All staff who are civil servants are included within La Poste.
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Summary of information pertaining to the social and environmental consequences of the business activities, and societal commitments in favour of sustainable developmentEnvironmental informationA3
Promotion and compliance with the recommendations of the International Labour Organization’s fundamental agreements
La Poste is a signatory to the United Nations Global
Compact and to the commitments made by Chairmen
& Chief Executive Officers regarding gender equality in
the world; La Poste publishes a progress report on its
commitment every year.
The Group’s business ethics scheme, which was rolled out
in 2013, summarizes these principles. Le Groupe La Poste
primarily operates in Western Europe, where domestic
legislation includes the OECD principles. An assessment
carried out at a subsidiary in Morocco in 2013 did not reveal
any irregularities in employees’ employment situations
where forced labour and child labour are concerned.
To combat any form of discrimination, Le Groupe La Poste
drew up a Hiring Charter in 2010. In this Charter, the
Group specifically commits to equality of opportunity, to
considering all applications, and to objectivity and respect
during the hiring process.
Furthermore, La Poste has been a signatory to the
Corporate Diversity Charter since 2006.
Within the Universal Postal Union, La Poste was recently re-
elected as the CSR working group leader, and is conducting
an active awareness-raising initiative among world-wide
postal services through that working group.
Environmental information
General environmental policy
Due to changes in laws and regulations (resulting in
particular from the Grenelle Environment Forum),
Le Groupe La Poste monitors and analyses the obligations
that may impact its business activities. These obligations
may affect customers or the regions where Le Groupe
La Poste operates, and require the Group to adapt; this is
why the Group has drawn up a legal framework intended for
the CSR division, in order to share that framework.
Environmental responsibility also forms part of the
management process (performance reviews and the
Chairman's performance indicators) and represents one of
the incentive criteria for employees’ remuneration, and for
their variable remuneration portion, where relevant.
La Poste continued to raise the Group’s newly appointed
managers’ (senior, strategic and managing executives)
awareness in 2013, and offered a training course to all the
regional representative teams. The environmentally-friendly
driving courses continued to be rolled out, and a guide
to using IT tools properly was published on the Intranet,
for the attention of employees. Le Groupe La Poste has
identified the main environmental risks resulting from the
products and services that it offers, and the equipment,
transportation and buildings that it uses. These factors
were incorporated into the internal control and reporting
procedures in 2013. The resources dedicated to preventing
environmental risks and pollution are set out below,
although they were not subject to a consolidated financial
valuation at Group level for the 2013 financial year.
The launch of environmental certification procedures fall
under La Poste's Business Line policies. the National
Postage Stamp Printing Facility, and ColiPoste (the
head office, the five regional operating divisions and the
15 parcels platforms) are ISO 14001 certified.
In 2013, Le Groupe La Poste’s business activities did not
give rise to a need for environment-related contingency
coverage or provisions, or give rise to court decisions or
legal actions in this field.
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Environmental information A3
Pollution and waste management
The business activities carried out by Le Groupe La Poste
primarily generate three kinds of waste: waste electrical
and electronic equipment, paper and packaging waste,
including cardboard pallets, and plastic, and household
waste.
Waste from electric and electronic equipment is the subject
of national agreements aimed at recovering and recycling
it, and may also be sold or given away.
For other waste, the Group is gradually rolling out action
plans for sorting, processing and material recovery.
Air (other than greenhouse gases), water and soil emissions
are not monitored. However, due to their nature, the Group’s
business activities do not generate substantial amounts of
pollutants other than those relating to the use of internal
combustion vehicles or land use, and represent a very low
risk of water and soil pollution.
Measures to prevent and remedy discharges into the water
and ground, or that affect the environment are set out in the
Paragraphs on “Sustainable use of resources” and “Climate
change”.
The noise nuisance inherent to the Group’s logistics
activities is addressed via three main types of initiatives:
regularly upgrading the internal vehicle fleet to the latest
European standards, and developing alternative means of
transport to air transport, for example combined air-rail
transport, and the purchase of a large number of electric
vehicles.
Because of the nature of its business activities, Le Groupe
La Poste is a significant consumer and carrier of paper.
The offering involving the collection of office paper for
recycling, known as “Recy'go”, which was launched with
VSCs and SMCs and local authorities in early 2012, has now
been rolled out throughout France. 2,987 tons of paper were
collected by the Nouvelle Attitude subsidiary in 2013, either
directly or via La Poste’s postmen.
Indicators
La Poste and La Banque Postale
La Poste, La Banque Postale and Mediapost SAS
2011 2012 2013 2013
Waste From Electrical and Electronic Equipment
(WEEE) in tonnes (a) 1,106 799 736 746
Recovery rate for this waste (excluding
donations and sales) (b) 81% 84% 83% 83%
(a) Scope including computer, safety/security and telecommunications equipment that was processed by a specialized division, or that was donated or
sold.
(b) The recovery rate is extrapolated across the entire consolidation scope through reporting the materials that account for 73.4% of the total WEEE
processed by the specialized division.
Sustainable use of resources
The primary raw material used in the Group's processes
is paper. Therefore, the Group has been committed to
monitoring and responsible purchasing since 2007, where
the goal is to reach 100% of responsible paper (recycled,
eco-labeled or from sustainably managed forests).
The portion of responsible paper consumed continued to
increase in 2013, rising to 97.5%, compared with 94.2%
in 2012, i.e. +3.3 points following a 3.6 point increase the
previous year. This increase now results from converting
the last printed materials, such as the Colissimo dispatch
labels or second dispatch labels, and the rolls for cash
machines.
Energy consumption is a challenge for the Group, as it is
a major component of its overheads. The action plans to
reduce this consumption focus on optimizing its vehicle fleet
and its buildings (reducing surface areas and upgrading the
equipment). An identical review for IT systems is underway.
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Furthermore, the replacement of internal combustion
vehicles by electric vehicles is taking place, as is the use
of renewable energy sources for buildings (since May 2012,
42 solar-power installations have been commissioned on
Poste Immo buildings as part of a partnership).
Le Groupe La Poste's water consumption is for office
purposes, or for collective catering purposes. It does not
consume any water for industrial purposes. The water
supply comes from the general supply network, which is
managed by local authorities, and is not subject to any
specific local constraints. Water consumption has fallen on
a regular basis (-5.6% between 2012 and 2013, and -0.7%
between 2011 and 2012 across La Poste, La Banque Postale
and Mediapost SAS consolidation scope).
The Group’s many facilities have an impact in terms of land
use, primarily due to the surface area that they occupy,
although it was not possible to identify their impact for the
2013 financial year.
Indicators (c)
La Poste and La Banque Postale
La Poste, La Banque Postale and Mediapost SAS
2011 2012 2013 2013
Paper consumption in tons (a) 21,898 20,039 17,412 17,589
Percentage of environmentally-responsible
paper (a) 90.5% 94.4% 97.5% 97.5%
Buildings’ energy consumption in GWh (b) 1,196 1,154 1,262 1,277
Water consumption in dm3 (d) 1,675 1,663 1,568 1,584
(a) Products (stamps, ready-to-ship, and other packaging sold), cardboard boxes, and mixed items like padded envelopes are not included in the scope of
the indicator.
(b) Energy taken into account are electricity, gas, domestic fuel and district heating.
(c) The methodology used in the reporting of the energy consumption of buildings was changed in 2013 to ensure a more exhaustive coverage. The 2013
results are based on amounts invoiced from 1 December 2012 to 30 November 2013. The average prices used to convert these amounts into kWh
are obtained either from the statistics databases of the Ministry of Sustainable Development (Pégase database) or from calculations made from
representative samples of invoices. For some buildings, consumption was extrapolated from the occupied surfaces. The energy consumption of
buildings disposed of during the year was not included.The consumption of electric vehicles was also included.
(d) A part of the water consumptions is estimated on the basis of the expenses invoiced during the exercise and a middle price descended of the INSEE.
Climate change
Le Groupe La Poste is taking measures to anticipate the
consequences of climate change, like the tightening of
regulations, for instance. To achieve this aim, it measures
and makes efforts to reduce its greenhouse gas (GHG)
emissions and has begun offsetting the residual CO2
emissions relating to the Mail, ColiPoste and GeoPost
offerings since 2012.
The Group’s commitment is to reduce its type 1 and 2
greenhouse gas emissions by 20% between 2013 and 2020
(direct and indirect emissions relating to its consumption
of electricity, steam, heating and cooling).
The greenhouse gas (GHG) emissions within the scope of the
Group’s commitment, (type 1 and 2 emissions) increased by
1.1% in 2013 compared with 2012. The Group is continuing
its efforts in transports and buildings, including renewing
the vehicle fleet and ordering 10,000 electric vehicles,
providing environmentally-friendly driving training to 79,000
employees, developing transportation alternatives to air
transportation, optimizing transport plans, reducing the
surface areas and budgets allocated to energy, renovations,
HEQ buildings, and employee behaviour.
Greenhouse gas emissions relating to buildings do not
include the loss of refrigerant gases, as the number of
buildings under management (11,847 for the Poste Immo
real estate subsidiary alone), makes it hard to survey the
facilities.
Total GHG emissions have dropped 2.5%.
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Information pertaining to societal commitments in favour of sustainable development A3
Greenhouse gas Indicators, in CO2 equivalent tons (c)
La Poste and La Banque Postale
La Poste, La Banque Postale and Mediapost SAS
2011 2012 2013 2013
Scope of the Group’s commitment:
Type 1 and 2 emissions (a) 385,630 367,352 371,590 374,518
Total emissions relating to transport
and buildings (b) - 779,343 759,381 771,769
(a) Type 1 and 2 GHG emissions within the meaning of the GHG Protocol direct and indirect emissions linked to the consumption of energy, steam, heating
or cooling.
(b) Type 1, 2 and 3 GHG emissions, including transport sub-contractors and employees' sub-contracted business travel. Until 2011, this indicator did
not include leased air and sea transport capacity for foreign destinations and the French overseas departments, except for Europ Airpost, and
sub-contracted road transport in Corsica and the French overseas departments; the results for the 2011 financial year cannot therefore be shown
according to this scope.
Leased air transport capacity for foreign destinations and the French overseas departments; the distances take stop-overs into account as from the
2013 financial year.
Work vehicles or "company cars" (1.2% of the internal fleet), and business travel performed by employees who use their own vehicles are excluded
from the scope of the indicator.
The related consumption of electricity and GHG emissions associated for electric vehicles (4,718) light vehicles and quadricycles and 16,236 electric
bicycles at the end of 2013) are recognized at the building level.
(c) The 2012 results were updated to reflect professional trips.
Protection of biodiversity
The potential impact of the Group’s business activities
on biological equilibrium, the natural environment and
protected animal and plant species relate to greenhouse
gas emissions and energy consumption, for which active
policies have been implemented (see above).
Poste Immo, the Group’s real estate company, has mapped
all its buildings in terms of Priority Environmental Areas,
and has audited a few buildings that have been targeted in
terms of their impact on biodiversity.
Furthermore, following an assessment of the services
provided by eco-systems at an Industrial Mail Platform,
Le Groupe La Poste entered into partnerships in 2013
in order to raise awareness of biodiversity, including a
partnership with the national consultation forum in order
to raise school children’s awareness, and a partnership
with the Nicolas Hulot Foundation to inform and involve its
employees. Some flagship urban post office facilities, like
La Banque Postale's head office and the Paris Louvre post
office have chosen to install bee hives.
Information pertaining to societal commitments in favour
of sustainable development
Regional, economic, and social impact of the Company's business activities
Through its activities, the Group occupies an important
role in French regions. It specifically contributes to the
development of the local economy via the services that it
offers to economic and institutional operators. Its regional
development public service agreement requires ongoing
dialogue with regional authorities. Moreover, the Group
is often the largest employers in the region. A number of
initiatives have been developed in deprived urban areas
as part of the policy for towns, and in rural areas, as
demonstrated by the Group's partnership with regional
parks.
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Summary of information pertaining to the social and environmental consequences of the business activities, and societal commitments in favour of sustainable developmentInformation pertaining to societal commitments in favour of sustainable developmentA3
Relations maintained with people or organizations interested in the Company's business activities, including integration organizations, teaching institutions, environmental protection organizations, consumer associations, and local residents
STAKEHOLDERS AND RELATIONS WITH THEM
Main direct stakeholders Main dialogue channels Main expectations identified
Shareholders AC and AC committees,
including the Quality and
Sustainable Development
Committee
Financial performance and sustainability of the business model
(long-term value creation)
Managing the risks that may affect the Company’s reputation
Contributing towards fulfilling commitments made to the
government (regulatory compliance in terms of social and
environmental responsibility, and public service obligations)
Customers
and consumer
associations
Group mediator
Structured consultation
of consumer associations
Surveys and opinion-
gathering
Listening to requirements, local nature and responsiveness of the
advice, based on considering the customers and their interests
Providing information on the offerings and the pricing policy
Societal innovation
Accessibility of the offerings to everyone, including marginalized
customers
Useful everyday services with environmental and/or social
added-value
Employees
and their
representatives
Employee representative
bodies
Employee relations survey
Various surveys, qualitative
and quantitative groups,
including CSR surveys
Time and Communications
Forums
Quality of jobs and working conditions (health & safety and well-being)
Boosting employability and supporting professional projects
Equality of opportunity in terms of access to employment and career
paths
Transparency of the dialogue with employees
Recognition of effort and know-how
The Company’s involvement in promoting CSR
Determination to be involved in the roll-out of tangible initiatives to
promote CRS, and especially social solidarity
Local elected
officials
Representative on the
Board of Directors
Departmental Local Postal
Coverage Commissions
(CDPPT)
Surveys and opinion-
gathering
Compliance with public service commitments and regulations
Visible presence in their region, including in underprivileged areas
Welcoming all customers, including the most marginalized
Involvement in their projects to promote sustainable development
(Climate Plan, Agenda 21, SCRAE, city policy, and rural development)
Contributing to their policy for employing marginalized individuals
Suppliers and
sub-contractors
Purchasing Charter, and
purchasing specifications
Co-designing equipment
with suppliers and staff
Long-term business collaboration
Complying with contractual undertakings and payment timeframes
Contract access conditions that give everyone a chance and
recognize CSR commitments
Support with developing more responsible offerings
Supporting innovation in order to anticipate changes in the
regulations
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Information pertaining to societal commitments in favour of sustainable development A3
Main direct stakeholders Main dialogue channels Main expectations identified
Partner charitable
organizations
(NGOs or other
organizations)
Partnerships structured by
sponsorship agreements
or arrangements,
joint involvement in
organizations
Openness to dialogue and cooperation in terms of work
Transparency of practices and communications
Guaranteed compliance with the regulations and business ethics
Access to postal and banking services for everyone
The Group’s contribution to advancing CSR and to national and local
social solidarity initiatives
Partnership or sponsorship initiatives
La Poste, La Banque Postale and Mediapost provided
sponsorship funding amounting to €8,174,339 to their
various partners in 2013. The La Poste Foundation
introduced initiatives within the framework of a budget of
€900,000.
The aims of the partnerships formed are access to basic
goods and services, and specifically access to employment,
access to our services (social mediation and interpreting),
access to education, the prevention of exclusion and social
integration (partner arbitrator).
Postal workers are asked to volunteer through coaching
(IMS), and sponsorship initiatives (Nos Quartiers ont des
Talents, Écoles de la seconde chance, Fondation Agir Contre
l’Exclusion).
Sub-contracting and suppliers
La Poste takes social and environmental issues into account
in its purchasing contract, and factors suppliers and sub-
contractors' social and environmental responsibility in its
relations with them, through suggesting that its suppliers
sign a commitment Charter.
It contributes to the development of local jobs by promoting
the availability of its tenders to social insertion and adapted
and protected sector organizations, and to SMCs and
VSCs. It is also developing access to employment through
its partnership with temporary employment agencies for
persons who are being reintegrated into the labour market,
or disabled persons.
It has drawn up a tender code. The Market Committee
reviews the fairness of the supplier selection process for any
intellectual service tender above €1.5 million, excluding tax,
and for any other tender above €10 million, excluding tax.
Indicators (a)
La Poste
La Poste, La Banque Postale and Mediapost SAS
2011 2012 2013 2013
Amount of the purchases in € million,
excluding tax - - 3,781.50 NA
of which amount of the purchases in € million,
excluding tax
from the protected sector 6.99 8.56 11.20 NA
from the workforce reintegration sector - 2.28 2.77 NA
Temporary work expenditure, in € million,
excluding tax (b) - - 82.35 89.50
(a) For all purchasing indicators, the results disclosed include purchases of the subsidiary Poste Immo, which are not distinguished from La Poste.
Purchases comprise all goods and services bought from third parties (materials, transport/logistics, IT, overheads, etc.) that were capitalized or
expensed.
(b) Scope of services performed under contracts signed at Group level.
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Summary of information pertaining to the social and environmental consequences of the business activities, and societal commitments in favour of sustainable developmentReport by the Statutory AuditorsA3
Fairness of practices and other initiatives launched to promote human rights
In April 2011, the Executive Committee adopted an ethical
system. The Group has specifically singled out various
forms of corruption. This code has been applied at the
various Group companies, and translated into English
for the foreign companies. Specific emphasis was placed
on corruption in 2013, including the publication of an
awareness-raising document, and the trial of a training
course intended for managers.
The measures taken to promote consumers' health and
safety aim to ensure their safety in premises that are open
to the public (prevention of assaults, and compliance with
standards for premises open to the public) and the security
of dispatches.
Report by the Statutory Auditors , designated independent
third parties, on the consolidated social, environmental and
societal information contained in the management report
Year ended 31 December 2013
To the Shareholders,
In our capacity as Statutory Auditors of the La Poste company, designated independent third parties, whose admission
for certification has been granted by COFRAC, we hereby report on the consolidated social, environmental and societal
information presented in the management report (hereinafter “CSR Information”) for the year ended 31 December 2013,
pursuant to the provisions of Article L. 225-102-1 of the French Commercial Code.
Corporate Responsibility
It is the responsibility of the Board of Directors to prepare a management report including the CSR information set out in
Article R. 225-105-1 of the French Commercial Code, prepared in accordance with the standards used by the Company
(hereinafter the “Standards”), a summary of which is given in the management report, available on request at the Company’s
head office.
Independence and quality control
Our independence is set out by regulation, the Code of Professional Ethics and the provisions of Article L. 822-11 of the
French Commercial Code. Furthermore, we have implemented a quality control system that includes documented policies
and procedures aimed at ensuring compliance with rules of professional conduct, professional standards and applicable
laws and regulations.
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Report by the Statutory Auditors A3
Responsibility of Auditors
It is our responsibility, based on our work:
to certify that the CSR information required is present in the management report or is subject, if omitted, to explanation
pursuant to the third paragraph of Article R. 225-105 of the French Commercial Code (Certificate of presence of CSR
information);
to express a conclusion giving moderate assurance as to the fact that CSR information, taken as a whole, is presented
sincerely, in all material respects, in accordance with the Standards (Reasoned opinion on the sincerity of CSR information).
Our work was carried out by a team of approximately ten people between November 2013 and February 2014 over a period
of about fourteen weeks. For assistance in the completion of our work, we called on CSR experts.
We conducted the work described below in accordance with professional standards applicable in France, and with the decree
of 13 May 2013 on the conditions pursuant to which independent third parties conduct their missions, and as regards the
certificate of sincerity, with the ISAE 3000 international standard (1).
1. Certificate of presence of CSR information
Based on interviews conducted with the relevant heads of department, we were apprised of guidelines for sustainable
development based on social and environmental consequences linked to the activity of the company and its societal
commitments and, where appropriate, the resulting actions or programmes.
We compared the CSR information presented in the management report with a list referred to in Article R. 225-105-1 of the
French Commercial Code.
In the absence of a number of items of consolidated information, we verified that explanations were provided in accordance
with paragraph 3 of Article R. 225-105 of the French Commercial Code.
We verified that the CSR information covered the scope of consolidation, namely the Company and its subsidiaries within the
meaning of Article L. 233-1 and the companies it controls within the meaning of Article L. 233-3 of the French Commercial
Code, within the limitations detailed in the section of the management report entitled “Scope and methodology of report”.
Based on this work, and given the limitations mentioned above, we confirm the presence in the management report of the
required CSR information.
2. Reasoned opinion on the sincerity of CSR information
Nature and scope of work
We conducted fifteen or so interviews with those responsible for preparing CSR information from the departments in charge of
the information-gathering process and where applicable, responsible for internal control and risk management procedures,
in order to:
assess the appropriateness of the Standards with respect to their relevance, completeness, reliability, neutrality, and ease
of understanding, taking into account industrial best practice, where appropriate;
to verify the implementation of a process to gather, collate, process and monitor aimed at ensuring the completeness and
consistency of CSR information, and to become familiar with internal control and risk management procedures relating
to the establishment of CSR information.
We determined the nature and scope of our tests and inspections according to the the nature and importance of CSR
information relating to the characteristics of the Company, the social and environmental implications of its business, and its
guidelines for sustainable development and industrial best practice.
(1) ISAE 3000 – Assurance engagements other than audits or reviews of historical information.
Registration document 2013 / LE GROUPE LA POSTE508
Summary of information pertaining to the social and environmental consequences of the business activities, and societal commitments in favour of sustainable developmentReport by the Statutory AuditorsA3
Regarding the CSR information we deemed most important (1):
in terms of the reporting entity, we consulted documentary sources and conducted interviews to corroborate qualitative
information (organization, policies, actions), and conducted analytical procedures on quantitative information and verified
calculations and data consolidation by means of survey, and verified their consistency and agreement with the other
information contained in the management report;
in terms of a representative sample of entities we selected (2) according to their business, their contribution to consolidated
indicators, their establishment, and a risk analysis, we conducted interviews to verify the appropriate application of
procedures and implemented in-depth tests based on sampling, which consisted of checking the calculations made and
reconciling them against documentary evidence. The sample selected represents an average of 20% of the workforce and
between 51 and 100% of the quantitative environmental information.
For other consolidated CSR information, we assessed its consistency against our knowledge of the Company.
Lastly, we assessed the relevance of the explanations, where appropriate, relating to the total or partial absence of some
information.
We consider that the sample size and methods we used while applying our professional judgement allow us to express a
conclusion giving moderate assurance; a higher level of assurance would have required more extensive verifications. Due to
the use of sampling techniques and other restrictions inherent in the running of any internal information and control system,
the risk of non-detection of a material misstatement in the CSR information cannot be absolutely ruled out.
Conclusion
Based on our work, we did not observe any material anomalies likely to call into question the fact that CSR information, taken
as a whole, is presented sincerely, in accordance with the Standards.
Paris La Défense, 21 February 2014
The Statutory Auditors
KPMG AuditA department of KPMG S.A.
Mazars
Philippe Arnaud François Caubrière Emmanuelle Rigaudias Dominique Muller
PartnerClimate Change &
Sustainable Development Department
Partner PartnerSustainable Development
Department
Partner
(2) Social Indicators: Human Resources Service Centres in Clermont-Ferrand, Toulouse and Maisons-Alfort IDF East. Environmental indicators: Véhiposte,
Logistics Network Department, Technical Department for Mail and International Mail/Parcels, Poste Immo, Procurement Department of La Poste and
Mail Department.
(1) Total staff at 31 December in terms of individuals, Staff distribution by gender, Staff distribution by age, Staff distribution by contract type, Average number
of full-time equivalent staff, Number of recruits on permanent contracts, Number of lay-offs, Proportion of part-time staff on 31 December in terms of
individuals (excluding temporary contracts), Number of days lost due to strike action, Total number of social agreements signed, Number of days of sick
leave, Number of days of absence due to occupational or commuting accidents, or occupational illnesses, Accidents at work with time off: frequency
of accidents at work with time off: severity rate, Total number of hours of training, Proportion of staff attending at least one training course during the
year, Proportion of women on the management committee, Total GHG emissions from transport and buildings, Energy consumption of buildings, Paper
consumption, Percentage of environmentally responsible paper, Tonnes of paper collected by postal workers for recycling (Recy’go offer).
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A4Glossary
Registration document 2013 / LE GROUPE LA POSTE510
Glossary A4
Addressed letter Type of targeted letter including a specific recipient and address (as opposed to an unaddressed
letter).
Advertising mail Mail that promotes a brand, its products or services. Most often used to recruit new customers and
to encourage existing customers to make new purchases.
Banking
accessibility
Public service and general interest mission entrusted to La Poste by the French government, which
it carries out via La Banque Postale through the Livret A passbook savings account (see 5.3.2.4.1).
AMF Autorité des marchés financiers (French Financial Markets Authority) or French Mayors Association
ANCI Agence nationale de communication et d’information (National Agency for Communication and
Information)—Represents the Group Corporate Communications Department in the regions and, as
such, passes down its strategy for its business activities and its corporate departments.
ANVIE Association nationale de valorisation interdisciplinaire de la recherche en sciences humaines et sociales
auprès des entreprises (National association for the interdisciplinary promotion of research into
human and social sciences in business).
APC/API Local and intercommunal postal agencies—public outlet managed in partnership with a town hall
or group of towns. Postal services are provided in exchange for fees.
APE Agence des participations de l’État (State Equity Investments Agency)
Apprenticeship
Charter
Established in June 2005, its goal is raising awareness among French companies about
apprenticeship being an option for professional integration. The signatory companies commit to
growing the number of apprentices they hire, consistent with their size.
ARCEP Autorité de régulation des communications électroniques et des postes (Electronic Communications
and Post Offices Regulatory Authority).
Bluenove French leader in open and collaborative innovation.
BtoB Business to Business
BtoC Business to Consumer
Business Process
Outsourcing (BPO)
Outsourcing of certain business line processes to an external service provider, a subcontractor.
CAP/CCP Commissions Administratives Paritaires/Commissions Consultatives Paritaires—Joint Administration
Committees (CAP) for state employees and Joint Advisory Committees (CCP) for private-sector
employees and public contractual employees, composed of equal numbers of staff representatives
and Company representatives, responsible for giving an opinion on individual circumstances relating
to mobility, assessment, rules of conduct, and careers.
Carbon Neutrality A process initiated as part of Le Groupe La Poste's policy to reduce its environmental imprint. It is
based on the following method: measuring CO2 emissions related to the Group’s business activities;
introducing actions to reduce these emissions; and offsetting residual emissions in order to neutralise
them, without any additional costs for customers. This process applies to Mail, Parcels and Express
in France and abroad. It recovers emissions generated by transport business activities (subsidiaries
and sub-contractors included), the energy consumption of buildings and IT servers, including those
that have been outsourced.
CCP Centre de Chèques Postaux, Compte Courant Postal or Compte Chèques Postal (Centre for post office
checks, post office current accounts, post office checking accounts).
Catchment areas Commercial area surrounding a sales outlet and in which consumers and/or prospects live. Two types
of data help determine the zone: distance and time to access a public outlet.
CDPPT Commission Départementale de la Présence Postale Territoriale—Departmental Commission
for Regional Post Office Presence. Tasked, in particular, with suggesting the allocation of the
departmental allowance for the national postal territorial compensation funds, negotiating with
La Poste the spending used to improve access to postal services in rural territories, Deprived Urban
Areas and to strengthen postal coverage in French overseas departments, giving an opinion on the
public outlet network and monitoring the application of provisions pertaining to the local postal
coverage agreement.
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Glossary A4
CECEI Comité des établissements de crédit et des entreprises d’investissement (Credit Institutions and
Investment Companies Committee). It was merged with the Banking Commission, l’Autorité de
contrôle des assurances et des mutuelles (French Insurance Supervisory Authority) and the Comité
des entreprises d’assurances (Insurance Companies Committee) to form the Autorité de Contrôle
Prudentiel (French Prudential Oversight Authority) in January 2010.
CEL/PEL Compte Épargne Logement/Plan Épargne Logement (Home Ownerships Savings Account/Home
Ownerships Savings Plan—Allows the investor to make a personal contribution while being able to
benefit from a loan at favourable rates (conditions apply).
CESU Chèque emploi service universel—(Universal Service Employer Check) — Created under a policy
to encourage home services, the Universal Service Employer Check has been in force since
1 January 2006. It is offered to private individuals to help them access all of their services to
individuals.
CHSCT Comité d’hygiène, de sécurité et des conditions de travail (Health, Safety and Working Conditions
Board)—specialized committee helping protect the health and safety of employees, and improving
their working conditions.
Charter for
Diversity
Launched in 2004, it encourages companies to ensure the promotion and respect of diversity in their
workforce.
Circular economy The circular economy achieves the goal of moving from an impact reduction model to a value
creation model, which is beneficial socially, economically and environmentally. This model relies
on the creation of positive value chains for each use or reuse of the material or product before
final destruction. In particular, it emphasizes creating new ways to design, produce and consume,
extending the duration of use of products, making the use of an item more important than the
possession thereof, reusing and recycling components.
Le Groupe La Poste is a founding member of the Institute of Circular Economy.
Citizens
conference
As a continuation of the participatory approach, Le Groupe La Poste invited three groups of citizens
(rural, urban and small businesses) from several regions to reflect upon and define new services that
would be useful for customers, territories and the community. The citizens submitted a summary of
their work to the Chairman of La Poste to improve the Group's strategic plan.
Cityssimo space "Cityssimo space", a free service making Colissimo parcels available in an area that is accessible
24/7, based on the principle of automated parcels delivery and operating based on a free subscription
over the Internet. The recipient subscriber has an access card to go and withdraw the parcel from
the Cityssimo chosen when the order was made. As soon as the parcel is available, a text message
and/or mail are automatically sent to the recipient including a collection code. Recipients have five
days to collect their parcel.
Click & Mortar Is used to describe companies from the traditional economy, usually from the distribution sector,
that have developed an online presence in addition to their traditional physical presence (mortar), in
order to grow their commercial business activities.
COGAS Conseil d’orientation et de gestion des activités sociales (Social Activities Orientation and Management
Council)—Established in 1998, COGAS implements the staff policy defined by the Group, distributes
the budget and controls its implementation. It carries out its missions in the framework of shared
management with the trade unions and a strong partnership with the associations of Le Groupe
La Poste.
Collaborative
economy
Collaborative economy refers to a business model where usage takes precedence over ownership:
the use of an item, service, or privilege, can be extended by sharing, exchanging, bartering, selling
or renting it. This practice is closely linked to the boom in on-line exchanges. The collaborative
economy is shaking up older business models by changing not only what people consume, but also
the manner in which they consume it.
CSR Responsabilité Sociale et Environnementale (RSE)—Corporate Social Responsibility (CSR)
CSSPPCE Commission supérieure du service public, des postes et des communications électroniques (Higher
Commission on Public Service, Postal Services and Electronic Communications).
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Glossary A4
CT Comité Technique (Technical Committee)—Staff representation body. It is responsible for discussing
issues such as the organization and operation of services, training, skills development and
professional qualifications, professional equality, parity and combating discrimination, etc.
CtoC Consumer to Consumer—Refers to a package sent by a private individual to another private individual.
Customs staff An individual or company carrying out customs formalities on behalf of its customers. Can be main
or secondary business.
Delivery times Time between goods being received by the transporter and delivered to the final recipient. Expressed
in business days, i.e. not including holidays or weekends.
Delivery Slip Postal item awaiting pick-up at public outlets.
Desktop publishing New word referring to all resources, services and IT applications used in publishing documents. In
practice, desktop publishing is especially used to refer to the mass production of business documents
with a fixed general structure (mail shots, contracts, invoices, account statements, etc.) and parts
that vary according to the recipient (addresses, figures, advertising messages, etc.).
Digital identity Digital identity can be defined as a technological link between a real entity (the person) and a virtual
entity (their digital representation(s). Every user now has a "digital identity", which consists of the
information that they have entered and their contributions, and of the traces that they have left on the
websites that they have visited, etc. The development of the Internet, which provides an increasing
number of services to private individuals, corporations and governments, irrevocably results in the
problem of information security, and more specifically personal data security. Digital identity services
are emerging to allow users to prove who they are on the Internet.
Direct marketing Communication skills and sales to individuals and enterprises identified in databases. Advertising
mail is one of the main tools used.
DISF Direction informatique des Services Financiers (IT Department for Financial Services).
DISFE Direction informatique des Services Financiers et de l’Enseigne (Financial Services and La Poste Retail
Brand IT Department).
DOCC Direction Opérationnelle Commerciale Courrier (Business Mail Operations Department).
DOTC Direction Opérationnelle Territoriale Courrier (Local Mail Operations Department).
Discretionary
management
Allows its financial assets to be entrusted to professional managers, with tools and expertise.
D+1 Delivery of mail the day after drop-off.
Eco-driving Style of driving based on modest use of a well-maintained vehicle adapted to the needs of the driver,
to limit CO2 emissions and fuel consumption.
E-commerce pure
players
Company created directly on the Internet with neither a physical presence nor a physical sales
network.
ECM Electronic Content Management, [ECM] or Electronic Document Management[EDM])—The use of IT
resources for the overall management of an electronic document.
EDI Electronic Data Interchange—Generic term defining an automatic data exchange between two entities
with the help of standardized messages. EDI in particular reduces human intervention in information
processing.
EFQM European Foundation for Quality Management—A European foundation that aims to promote a
methodological framework, in order to enable member companies to assess their level of quality
and make improvements. Self-assessment model based on nine principles.
Electronic banking All electronic, computerized and telematic procedures needed to manage bank cards and associated
transactions.
E-mailing Direct marketing campaigns conducted by e-mail.
ESC Espace Service Client (Customer Service area). A post office concept that has been rolled out since
2009, it offers a reception, advice and sales model adapted to the diversity of needs and developing
customer relations, from a consistent service centred on the post office counter to a multi-media
model based on a customized service.
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Glossary A4
Expressiste Active operator in the express market.
Express transport Shipping of documents and parcels nationally and around the globe with:
Door-to-door collection and delivery;
Guaranteed delivery times;
Completion of administrative and customs formalities;
Full tracking;
IT solutions to manage shipments (production of slips with bar codes and computerized tracking).
The different levels of service offered for the most frequent destinations distinguish between three
categories of express delivery: early morning, before noon or during the day.
FCPE Fonds commun de placement d’entreprise (Employee mutual funds)—Established to manage the money
invested by employees under the various employee savings plans (which may come from employee
incentive-based pay, equity investments, voluntary payments, company “matching contributions”).
FCPI Fonds commun de placement dans l’innovation (Innovation Mutual Fund)—Type of risk-based mutual
fund that invests at least 60% of its assets in companies, including those that are innovative and
unlisted (non-exhaustive rules).
GDP Gross Domestic Product—An economic indicator which measures a country's production level. It is
defined as the total value of internal goods and services production in a given country over the course
of one given year by staff living inside the national territory.
GIE CESU Groupement d’intérêt économique des Chèques Emploi Service Universel (Universal Service Vouchers
Economic Interest Group)—Owned by La Banque Postale and created with five other partners to
process and pay CESU.
Green IT Approach allowing IT Departments to participate in the sustainable development policy of their
company or community.
Health and Safety
Plan
Aimed at improving the protection of employees on a daily basis and during the changes that
accompany the development of the Company.
Hub Concentration/dispatch platform for a national region. The network, in which the hubs are integrated,
is organized like a spider web: all same-day express letters and parcels are grouped together at
a hub, generally close to an airport, train station or other multi-modal platform, to redistribute to
depots or offices at the destination, or to another hub.
IARD Incendie, accidents et risques divers (Fire, Accident and Miscellaneous Risks)—French abbreviation
used to designate property and casualty insurance, as opposed to personal insurance.
Infini Drive Project aiming to design a standard intelligent control system for charging electric vehicle fleets. It
is led by a consortium of eight partners, including Le Groupe La Poste and its subsidiaries Docapost
BPO and Greenovia. Ademe has selected this project as part of its Future Investments program.
Institute of
management
An internal institute created to help managers overcome current and future challenges by creating
an open space for skills development, sharing and managerial innovation.
Integrated
operator
Global transporters covering the whole shipping chain. They act as airline, customs staff member,
freight staff member and road messenger. Integrators are in direct contact with senders and have
their own fleet of cargo planes. There are four main integrators: DHL, FedEx, TNT Express and UPS.
IPC International Post Corporation.
IRP Institutions représentatives du personnel (Institutions Representing Personnel)—Set up by law, these
institutions are intended to provide information to employees and ensure employee representation
within the general framework of management of the Company. This may be with regard to the
interests of the employees, workplace and employment conditions (employee representatives, union
representatives) or issues related to hygiene and safety (CHSCT).
ISA/Printed
advertising
Imprimé Sans Adresse (no printed address)—Advertisements delivered to mailboxes. Type of mail that
does not include a specific recipient and address (as opposed to an addressed letter).
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Glossary A4
ISO certification International Organization for Standardization—A means of certifying a company's ability to provide
a service, product or system in accordance with customer and regulatory requirements, through a
third-party certifier.
Joint venture A jointly held business, or joint venture, created by two or more companies holding shares (equal
or unequal).
Last mile Last link in the logistics chain in delivery, this phase ensures the individual shipping of companies
as well as delivery to private individuals' residence.
Literature for the
blind
Mail or parcel containing documents sent or received by visually impaired persons or support
organizations (charities, specialist education institutions, etc.), and which are delivered at zero or
reduced cost by the postal services of many countries. In France, the Universal Postal Service (see
Universal Service) includes mailing literature for the blind free of charge.
Local Postal
Agencies
General term for all types of local postal coverage, ranging from post offices, local and intercommunal
postal agencies, Relais Poste outlets and all other forms of mutualization, aiming to share resources
between La Poste and other public or private partners and approved by the National Postal Presence
Observatory.
Mail order Buying (or selling) goods and services by mail delivery (VPC).
Mailhouse Company contracted to Le Groupe La Poste for bulk sending of documents provided by a business,
association, party, etc. with special prices for the issuer. The mailhouse ensures that addresses can
be read by Address Recognition Units and comply with the Afnor XP Z 10-011 standard of May 1997.
Major Dialogue A listening cycle and dialogue on life at work, that took place both nationally and locally, launched in
March 2012 by the Chairman at the time Jean-Paul Bailly.
Mutual Real Estate
Investment Fund
Organisme de placement collectif immobilier (type of real estate investment trust—REIT)—Real estate
fund whose setting up is approved by the Autorité des marchés financiers (French Financial Markets
Authority). Its purpose is the distribution of income from property management to unit-holders. Its
assets must be composed of a minimum of 60% investment in real estate.
MVNO Mobile Virtual Network Operator—a virtual mobile network operator with no technical infrastructure
of its own, who enters into agreements with mobile operators having their own network so as to
provide a range of services and technical solutions to its customers under its own brand.
National postal
territorial
equalization fund
Funds that maintain postal presence in less populated areas or areas with less activity, so-called
priority areas (rural areas, mountain areas, deprived urban areas and overseas departments and
territories). It is funded through an allowance granted to Le Groupe La Poste on local tax (Regional
economic contribution and property taxes).
ONPP Observatoire national de la présence postale (National Postal Presence Observatory).
ORIAS Organisme pour le registre des intermédiaires en assurances (French registry of insurance brokers).
Packing units Packing units prepared for shipment.
Parcels Package weighing up to approximately 30 kg and with total dimensions of less than 2 meters; allowing
for industrialized sorting processes and delivery by a single person.
Participatory
approach
During the Major Dialogue, postal workers expressed their desire to be more involved in the
Company's strategy. To respond to this desire, the Company organized a participatory approach. In
practice, 150,000 postal workers from the parent company and subsidiaries were able to discuss the
current situation at Le Groupe La Poste: its strengths and weaknesses, risks and opportunities, so
as to then make contributions to the Group's strategic project—shared trust.
Paylib A simple and secure on-line payment method, which does not require inputting bank card data.
BNP Paribas, La Banque Postale and Société Générale have joined forces to develop this innovative
solution, which can be used on computers, tablets or smartphones.
PEE/PEG Plan d’épargne entreprise or Plan d’épargne Groupe (company savings plan or employee savings
plan)—Allows employees to accumulate savings in the form of a portfolio of securities, with the
help of their company. Blocked for five years minimum, the funds come from voluntary employee
contributions and company contributions.
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Glossary A4
PERCO Plan d’épargne pour la retraite collectif (Collective Retirement Savings Plan)—Allows employees to
accumulate savings that are available upon retirement as an annuity or in share capital.
Personal
micro-credit
Loan for individuals who wish to realize a project (excluding start-ups), but who do not have access
to traditional bank credit.
PDC Plateforme de distribution du courrier (Mail delivery platform)
PIC Plateforme Industrielle du Courrier (Industrial Mail Platform)
PIMMS Point intermédiation multiservices (MultiServices inter-mediation point)—A venue open to everyone,
the PIMMS offers local mail services available to inhabitants. An information and mediation outlet,
it facilitates the use of public services.
Postal operator Public or private sector entity handling mail and parcels from collection to delivery (collection,
sorting, transport and distribution).
Postage Transport and distribution of a press media through Le Groupe La Poste's traditional circuit.
PostEurop Association of European public postal operators.
POS advertising Point of Sale Advertising—Advertising inside stores on posters, video, radio, etc.
POS advertising Point of Sale Advertising—Advertising inside stores on posters, video, radio, etc.
PPDC Plateforme de Préparation et de Distribution du Courrier (Mail preparation and delivery platform).
Press distribution This public service mission, entrusted to Le Groupe La Poste, allows press publishers to receive
privileged postal tariffs and a very high level of distribution quality six out of seven days throughout
the territory. A tripartite agreement between the French government, Le Groupe La Poste and all of
the publishing unions specifies the terms under which this public service mission is to be carried out.
The current agreement, which was signed in July 2008, is valid from 1 January 2009 to 31 December
2015. The agreement was under renegotiation at the end of 2013.
Press delivery Distribution of print media at the subscriber’s home or workplace, unlike postage.
PR Poste Relais—Public outlet located inside a shop. This type of private partnership is governed by a
framework agreement between the Assemblée des Chambres françaises de commerce et d’industrie
(ACFCI), Assemblée permanente des Chambres de métiers (APCM), Confédération des débitants de tabac
and La Poste. Postal services are provided in exchange for fees.
Rapid transport Shipping of documents and parcels nationally and around the globe with fast but not guaranteed
delivery times.
Regional planning Public service mission, the contribution to regional planning maintains access to postal service,
including less populated areas. At least 90% of the population of a department must have access
to a Le Groupe La Poste public outlet within at least five km and within no more than a 20 minutes
commute by automobile from one's house. Le Groupe La Poste also commits to maintaining at least
17,000 public outlets at the national level.
REIT Société Civile de Placement Immobilier—SCPI—(type of real estate investment trust—REIT). Mutual
fund investment structure whose purpose is the acquisition and management of real estate assets.
It collects money from the public and redistributes the rents and/or tax benefits to its unit-holders,
the “associates”.
Relationship mail Mail whose purpose is to manage and cultivate a brand or company relationship with customers. It
was still called business correspondence a few years ago.
Reloading Transferring a shipped item to one means of transport or storage to another. Transporters, express
operators and integrators aim to reduce the amount of reloading to minimize any handling risks.
Reverse logistics Process of planning, implementing and controlling performance: of the use of raw materials; of work
in progress: inventory, production, finished products; of managing the information chain from the
customer to the supplier in order to recover, create or make use of the value of products sold and
accompanying packaging, by minimizing the environmental impact and use of resources.
Rural area Town with less than 2,000 inhabitants.
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Glossary A4
Scanning Process which consists of scanning (flashing) a package upon drop-off at the post office until delivery
(one parcel is flashed on average four times while en route). Using the tracking number of the
package, the customer can know at all times what the shipping status of the shipment is.
SEPA Single Euro Payment Area—the SEPA project is a European project that is in keeping with the switch
to the euro. The goal is to create a unique range of means of payment in euros, shared between all
European countries. Thanks to these new European means of payment, consumers, companies,
retailers and administrations can make payments in the same conditions throughout Europe, as
easily as in their country.
Shared trust The name of Le Groupe La Poste's 2013-2018 strategic project, drafted in cooperation with postal
workers, elected representatives and consumer associations.
Shipper Customer who pays for the transport.
Single-piece mail Items posted and handled individually, as opposed to bulk mail. Synonymous with individual mail.
Social micro-credit Loan system whose purpose is to promote the social and professional integration of disadvantaged
individuals or those outside the banking system.
Sorting on arrival Sorting of mail by the postmen's rounds—All of the letters received are broken down between the
postmen's rounds, according to their place of delivery.
Sorting on
departure
Sorting mail into order for each delivery round. Once the sorting is performed, a second sorting takes
place in order to classify the letters in the order of each postmen's round.
SRI (Investissement social responsable—ISR) Social Responsible Investments, or Socially Responsible
Investments (SRI)—Investments in financial markets that take non-financial criteria (environmental,
societal and governance) into account in the selection of securities.
Stand Mobile counter specific to the “Customer Service Area” concept.
Think tank Non-profit institution that brings together experts and produces studies and proposals in relation
to public policy.
Top Employer
certification
Issued by the CRF Institute, it identifies leaders in HR management based on international criteria.
TIP Titre interbancaire de paiement (Interbank payment order).
Tracking Service provided by express or rapid transporters, involving the computerized monitoring of an
item’s progress from collection to delivery. Companies all offer this type of service on their website.
Transport companies try to offer the largest number of tracking points (usually at each reload).
Drivers and delivery staff carry electronic handsets for integrated operators to access information
on the final delivery in real time.
UCITS Undertaking for collective investment in transferable securities.
UGAP Union des groupements d’achats publics (public purchasing group union)—Industrial and commercial
public sector company under the supervision of the Minister for the Budget and the Minister for
National Education. This property is a purchasing centre within the meaning of the procurement code.
ULA Espace logistique urbain—(ELU). Urban Logistics Area. An urban area intended for delivering and
collecting express parcels that weigh less than 30kg. It allows the operator to consolidate shipments
by getting as close as possible to recipients. The number of kilometers travelled and polluting
atmospheric emissions are reduced, notably due to the roll-out of electric fleets or alternative
technologies.
UPU Universal Postal Union—Specialized UN agency. Its purpose is to promote the development and
cooperation of existing postal systems.
Urban logistics Method of shipping cargo flows entering, leaving and circulating in a city under the best conditions.
Urban logistics covers multiple, diverse and interdependent components: housing, economic activity,
urban management, transport, etc. Its challenges are difficult to assess since they include security
issues, sharing roads, traffic, noise or pollution.
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Glossary A4
US Universal Service—The Universal Postal Service is defined in Articles 3 et seq. of the Directive
No.97/67/CE of 15 December 1997. The European provisions were transposed into French law by
Act No.99-533 of 25 June 1999. It "guarantees all users throughout the country permanent access
to postal services of specified quality. These services are offered at affordable prices for all users”. It
includes national and cross-border transmission of postal items weighing up to 2 kg, postal parcels
of up to 20 kg, registered items and insured items. Collection and delivery services within the scope
of the Universal Postal Service are carried out every working day, save in exceptional circumstances".
VAD Distance sales.
VAE Vélo à assistance électrique (Electrically Assisted Bicycle)
ZRR Zone de revitalisation rurale (Rural Revitalization Area).
ZUS Zone urbaine sensible (Deprived Urban Area).
Registration document 2013 / LE GROUPE LA POSTE518
519Registration document 2013 / LE GROUPE LA POSTE
A5Cross reference table
Registration document 2013 / LE GROUPE LA POSTE520
Cross reference table Sections of appendix I of European Regulation No.809/2004A5
Sections of appendix I of European Regulation No.809/2004
Regulation 809/2004Sections of the registration document Page
Chapter 1 — Person Responsible Chapter 1 6
Chapter 2 — Statutory Auditors Chapter 2 8
Chapter 3 — Selected financial information Chapter 3/3.3 12
Chapter 4 — Risk factors Chapter 9 117-134
Chapter 5 — Information about the Company
5.1 History and development of the Company Chapter 3/3.2 10
Chapter 4/4.1—4.2—4.3—4.4 18
5.2 Capital expenditure Chapter 10/10.5 162-168
Chapter 6 — Overview of business activities Chapter 5
6.1 Main business activities Chapter 5/5.1 20-70
Chapter 5/5.3 77-89
6.2 Primary markets Chapter 5/5.1 20-70
6.3 Exceptional events Chapter 5/5.6 104
6.4 Dependence on patents Chapter 5/5.7 104
6.5 Information on which any warranty from the issuer regarding
their competitive position is based Chapter 5/5.1 20-70
Chapter 7 — Simplified organization chart Chapter 6 105-107
Chapter 8 — Property, plant and equipment
8.1 The Group's assets Chapter 7/7.1 110
8.2 Environment and sustainable development Chapter 7/7.2 111
Chapter 5/5.4 90-104
Chapter 9 — Review of the financial position and results Chapter 10 136-174
Chapter 10 — Cash, cash equivalents and share capital Chapter 11 175
Chapter 11 — Innovation and R&D Chapter 8 114-116
Chapter 12 — Information on trends Chapter 12 177-178
Chapter 13 — Profit forecasts or estimates Chapter 13 179
Chapter 14 — Administrative, management and supervisory bodies and Executive Management
14.1 Board of Directors Chapter 14/14.1 182-188
14.2 Executive Management Chapter 14/14.2 189-192
14.3 Absence of family connections, convictions and conflicts
of interest Chapter 14/14.3 193-194
521Registration document 2013 / LE GROUPE LA POSTE
Cross reference table Sections of appendix I of European Regulation No.809/2004 A5
Regulation 809/2004Sections of the registration document Page
Chapter 15 — Remuneration and benefits
15.1 Remuneration and benefits paid to corporate officers Chapter 15/15.1 196-199
15.2 Total provisions and amounts recognized for pensions
and other benefits Chapter 15/15.2 200
Chapter 16 — Operation of administrative bodies
16.1 Duties of the Board of Directors Chapter 16/16.1 202-203
16.2 Work performed by the Board of Directors during the 2013
financial year Chapter 16/16.2 204
16.3 Assessment of the operation of the Board of Directors Chapter 16/16.3 204
16.4 Board committees within the Board of Directors Chapter 16/16.4 205-206
16.5 Internal control Chapter 16/16.5 207
16.6 Compliance with the system of corporate governance in force
in France Chapter 16/16.6 208
Chapter 17 — Employees
17.1 Change in staff numbers 210
17.2 A responsible employment policy 210
17.3 Professional development, training and˜promotion policy 211-214
17.4 Diversity and equal opportunity 215-217
17.5 Health and safety—quality of˜life at˜work 218
17.6 Players in HR support 219
17.7 General remuneration policy 220-221
17.8 Staff policy 222-226
17.9 Employee shareholding 227
17.10 Summary of employee information 227-230
Chapter 18 — Principal shareholders
18.1 Shareholders Chapter 18/18.1 232
18.2 Control of La Poste Chapter 18/18.2 232
18.3 Known agreement that could lead to a change of control Chapter 18/18.3 232
Chapter 19 — Related-party transactions
19.1 Relations with the French government and public sector
companies Chapter 19/19.1 234
19.2 Relations with companies falling within the scope of
consolidation Chapter 19/19.2 235
Chapter 20 — Financial information regarding the issuer’s assets and liabilities, financial position and results
20.1 Consolidated documents Chapter 20/20.1 238-378
20.2 Social documents Chapter 20/20.2 379-425
20.3 Dividend distribution policy Chapter 20/20.3 426
20.4 Legal and arbitration proceedings Chapter 20/20.4 426
20.5 Significant change in the financial or commercial position Chapter 20/20.5 426
Registration document 2013 / LE GROUPE LA POSTE522
Cross reference table Annual financial reportA5
Regulation 809/2004Sections of the registration document Page
Chapter 21 — Additional information
21.1 Share capital Chapter 21/21.1 428-429
21.2 Memorandum of association and articles of association Chapter 21/21.2 430-434
Chapter 22 — Material contracts Chapter 22 435
Chapter 23 — Third-party information, statements by experts and declarations of interest Chapter 23 437
Chapter 24 — Publicly available documents Chapter 24 439
Chapter 25 — Information on equity investments Chapter 25 441
Annual financial report
Sections of the registration document Page
Declaration by the person responsible for the document Chapter 1 6
Management report Chapter 5 (Presentation and
change in business activities,
environmental information)
19-104
Chapter 9 (Risks) 117-131
Chapter 10 (Analysis of the
change in results and financial
position)
135-174
Chapter 15 (Compensation of
corporate officers)
195-200
Chapter 17 (Information
relating to social matters)
209-230
Chapter 18 (Division of share
capital and voting rights)
231-232
Chapter 21 (Share capital) 427-434
Financial statements
Annual financial statements Chapter 20.2 379-425
Statutory Auditors' report on the annual financial statements Chapter 20.2 424
Consolidated financial statements Chapter 20.1 238-375
Statutory Auditors' report on the consolidated financial statements Chapter 20.1 376
Design and production: Photo credits and illustrations: Adam Simpson/heart, Plain pictures, iStockphoto.
Group Finance Department 44 bd de Vaugirard – 75757 Paris Cedex 15 – Tel.: + 33 (0)1 55 44 00 00 – www.legroupe.laposte.fr
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GROUP FINANCE DEPARTMENT44 BD DE VAUGIRARD — 75757 PARIS CEDEX 15
Tel.: +33 (0)1 55 44 00 00www.legroupe.laposte.fr
La Poste – Société anonyme with a capital of €3,800,000,000 – 356 000 000 RCS PARIS – Head office: 44 BOULEVARD DE VAUGIRARD – 75757 PARIS CEDEX 15