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R E G I S T R AT I O N
DOCUMENT 2014
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
Annual ﬁnancial report
This registration document contains all of the information that forms the annual ﬁnancial report.
This registration document was ﬁled with the French Financial Markets Authority (Autorité des marchés ﬁnanciers – AMF) on
16 March 2015, in accordance with Article 212-13 of its General Regulations. 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
prepared 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:
f the consolidated ﬁnancial statements of Le Groupe La Poste for 2013 and the corresponding Statutory Auditors’ report
reproduced in sections 20.1.1 and 20.1.2 of the 2013 registration document, ﬁled with the AMF on 12 March 2014 under
number D14-0135;
f the consolidated ﬁnancial statements of Le Groupe La Poste for 2012 and the corresponding Statutory Auditors’ report
reproduced in sections 20.1.1 and 20.1.2 of the 2012 registration document, ﬁled with the AMF on 28 March 2013 under
number R13-009.
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.
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 versions, only the text in French language shall be deemed authentic and considered as expressing the
exact information published by Le Groupe La Poste.
Registration document 2014
LE GROUPE LA POSTE
1
Contents
1
Person Responsible
1.1
1.2
2
3
5
Innovation and intellectual property 119
8.1
Open innovation: a project accelerator . . . . 120
8.2
Process improvement . . . . . . . . . . . . . . . . . . 122
Declaration from the person responsible
for the registration document. . . . . . . . . . . . . . 6
8.3
Internal innovation . . . . . . . . . . . . . . . . . . . . . 122
8.4
Intellectual property policy . . . . . . . . . . . . . . 123
7
2.1
Regular Statutory Auditors . . . . . . . . . . . . . . . . 8
2.2
Alternate Statutory Auditors . . . . . . . . . . . . . . . 8
Le Groupe La Poste proﬁle
and selected ﬁnancial information
9
9
Overview: a major multi-business
services group . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.2
History and milestones in the
development of the Group’s business
activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.3
Selected ﬁnancial information . . . . . . . . . . . . 13
3.4
Group strategy . . . . . . . . . . . . . . . . . . . . . . . . . 15
10
Risk factors
125
9.1
Risk management system and methods
for identifying and handling risks. . . . . . . . . 126
9.2
Strategic risks. . . . . . . . . . . . . . . . . . . . . . . . . 127
9.3
Operational risks . . . . . . . . . . . . . . . . . . . . . . 129
9.4
Financial risks . . . . . . . . . . . . . . . . . . . . . . . . 131
9.5
Legal and regulatory risks . . . . . . . . . . . . . . 135
9.6
Policy of covering certain risks
with insurance . . . . . . . . . . . . . . . . . . . . . . . . 138
Review of the ﬁnancial position
and results
141
10.1 Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
Information about the Company
19
4.1
Company name . . . . . . . . . . . . . . . . . . . . . . . . . 20
4.2
Registration place and number . . . . . . . . . . . 20
4.3
Date of incorporation and duration
of the Company . . . . . . . . . . . . . . . . . . . . . . . . . 20
4.4
Registered ofﬁce, legal status and
governing law applicable . . . . . . . . . . . . . . . . . 20
Overview of business activities
5.1
Services-Mail-Parcels . . . . . . . . . . . . . . . . . . . 22
5.2
GeoPost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
5.3
La Banque Postale . . . . . . . . . . . . . . . . . . . . . . 46
5.4
La Poste Network . . . . . . . . . . . . . . . . . . . . . . . 62
5.5
Digital Services . . . . . . . . . . . . . . . . . . . . . . . . . 68
5.6
Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
5.7
Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
5.8
Social and Environmental Responsibility . . . 95
5.9
Exceptional events . . . . . . . . . . . . . . . . . . . . . 107
Simpliﬁed organisational chart
10.2 Summary of Le Groupe La Poste
consolidated results . . . . . . . . . . . . . . . . . . . 155
10.3 Operating results by business segment . . . 163
10.4 Other key aggregates of the income
statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
10.5 Debt and ﬁnancial strength . . . . . . . . . . . . . . 180
10.6 Analysis of the parent company ﬁnancial
statements . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
10.7 Post balance sheet events. . . . . . . . . . . . . . . 191
21
5.10 Dependence on patents . . . . . . . . . . . . . . . . . 107
6
8
Person responsible for the registration
document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Statutory Auditors
3.1
4
5
109
11
Cash, cash equivalents and share
capital
193
12
Outlook
195
13
Proﬁt forecasts or estimates
199
Administrative, management
and supervisory bodies
and Executive Management
201
14
14.1 Board of Directors . . . . . . . . . . . . . . . . . . . . . 202
7
2
Property, plant and equipment
115
7.1
The Group’s assets . . . . . . . . . . . . . . . . . . . . . 116
7.2
Environment and sustainable development 117
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14.2 Executive Management . . . . . . . . . . . . . . . . . 219
14.3 Absence of family ties, convictions and
conﬂicts of interest . . . . . . . . . . . . . . . . . . . . 226
15
Compensation and Beneﬁts
227
20
15.1 Compensation of corporate ofﬁcers . . . . . . 228
15.2 Total provisions and amounts
recognised for pensions
and other beneﬁts . . . . . . . . . . . . . . . . . . . . . 231
Operation of administrative bodies
20.2 Separate ﬁnancial statements . . . . . . . . . . . 422
20.3 Dividend payment policy . . . . . . . . . . . . . . . . 468
20.4 Legal and arbitration proceedings . . . . . . . . 468
20.5 Material change in the Company’s
ﬁnancial or commercial position . . . . . . . . . 468
233
16.1 Duties of the Board of Directors . . . . . . . . . . 234
16.2 Activity of the Board of Directors in 2014 . . 236
21
16.3 Assessment of the functioning
of the Board of Directors . . . . . . . . . . . . . . . . 236
16.6 Compliance with the system of
corporate governance in force in France . . 240
17
22
245
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
17.1 Change in Group headcount . . . . . . . . . . . . . 246
17.2 A responsible employment policy . . . . . . . . 247
17.3 Professional development, training
and promotion policy . . . . . . . . . . . . . . . . . . . 248
17.4 Diversity and equal opportunity . . . . . . . . . . 251
469
21.2 Memorandum of A ssociation
and Articles of Association . . . . . . . . . . . . . . 472
23
Employees
Additional information
21.1 Share capital . . . . . . . . . . . . . . . . . . . . . . . . . . 470
16.4 Board Committees within
the Board of Directors . . . . . . . . . . . . . . . . . . 237
16.5 Internal control . . . . . . . . . . . . . . . . . . . . . . . . 239
275
20.1 Consolidated ﬁnancial statements. . . . . . . . 276
15.3 Stock purchase or subscription options
and performance shares . . . . . . . . . . . . . . . . 231
16
Financial information regarding
the assets and liabilities, ﬁnancial
position and results of the issuer
Material contracts
477
Third-party information, statements
by experts and declarations
of interest
479
24
Publicly available documents
481
25
Information on equity investments
483
Appendices
485
17.5 Health and safety — Quality of life at work . 254
17.6 Players in HR support . . . . . . . . . . . . . . . . . . 256
17.7 General compensation policy . . . . . . . . . . . . 257
A
A1
Chairman’s report on corporate
governance and internal control
and risk management
procedures for 2014 . . . . . . . . . . . . . . . . . . . . 487
A2
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 . . . . . . . . . . . . . . . . . 533
A3
Summary of information pertaining
to the social and environmental
consequences of the business
activities, and societal commitments
in favour of sustainable development . . . . . 537
A4
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 557
19.1 Relations with the French government
and public sector companies . . . . . . . . . . . . 272
A5
Information on the Tax Credit to promote
Competitiveness and Employment. . . . . . . . 563
19.2 Relations with consolidated companies . . . 274
A6
Cross-reference tables . . . . . . . . . . . . . . . . . 565
17.8 Change management . . . . . . . . . . . . . . . . . . . 259
17.9 Staff policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260
17.10 Employee shareholding . . . . . . . . . . . . . . . . . 264
17.11 Summary of employee information . . . . . . . 265
18
Principal shareholders
269
18.1 Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . 270
18.2 Control of La Poste . . . . . . . . . . . . . . . . . . . . . 270
18.3 Known agreement that could lead
to a change of control. . . . . . . . . . . . . . . . . . . 270
19
Related-party transactions
271
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4
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1
Person Responsible
1.1
Person responsible for the registration document
6
1.2
Declaration from the person responsible for the registration document
6
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5
1
Person Responsible
Person responsible for the registration document
1.1
Person responsible for the registration document
Mr Philippe Wahl
Chairman and Chief Executive Ofﬁcer
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 my knowledge, the ﬁnancial statements have been prepared 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
of the companies included in the consolidation, and that the management report (presented on pages 141 to 191 of this
registration document) gives a true and fair view of changes in the business, results and ﬁnancial position of the Company
and all of 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. The 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 420-421 and 466-467 of this document for the ﬁnancial statements for the
year ended 31 December 2014.
In the report relating to the consolidated ﬁnancial statements for the year ended 31 December 2014 presented on page
420-421 of the 2014 Registration Document, the Statutory Auditors, without qualifying their opinion, have drawn the reader’s
attention to the matter set out in Note 3 to the consolidated ﬁnancial statements which sets out the change in accounting
policies from the ﬁrst application of IFRS 10, IFRS 11 and IFRS 12, relating to Consolidated Financial Statements, Joint
Arrangements and Disclosure of Interests in Other Entities.
In the report relating to the consolidated ﬁnancial statements for the year ended 31 December 2013 presented on page 376
of the 2013 registration document, the Statutory Auditors, without qualifying their opinion, have drawn the reader’s attention
to the 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
6
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2
Statutory Auditors
2.1
Regular Statutory Auditors
8
2.2 Alternate Statutory Auditors
8
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7
2
Statutory Auditors
Regular Statutory Auditors
2.1
Regular Statutory Auditors
Mazars
KPMG
Represented by Guy Isimat-Mirin and Dominique Muller
Represented by François Caubrière and Isabelle Goalec
Tour Exaltis
61, rue Henri-Regnault
92400 Courbevoie
1, cours Valmy
92923 Paris-La Défense Cedex
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 was appointed by the inter-ministerial decree of
29 June 2009.
2.2
Alternate Statutory Auditors
Serge Castillon
Philippe Mathis
Tour Exaltis
61, rue Henri-Regnault
92400 Courbevoie
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.
8
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Le Groupe La Poste
profile and selected
financial information
3.1
3
Overview: a major multi-business services group
10
3.2 History and milestones in the development of the Group’s business activities
11
3.3
13
Selected ﬁnancial information
3.4 Group strategy
15
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9
3
Le Groupe La Poste proﬁle and selected ﬁnancial information
Overview: a major multi-business services group
3.1
Overview: a major multi-business services group
Le Groupe La Poste is a major French services group.
Wholly owned by public shareholders (73.68% by the
French government and 26.32% by Caisse des Dépôts et
Consignations), it is one of the largest employers in France,
with nearly 260,000 employees.
In 2014, the Group made €22.2 billion in revenue, 17.9%
of which in international markets, and €719 million in
operating proﬁt (1).
Comprising a parent company (La Poste SA) and its
subsidiaries, Le Groupe La Poste is structured around ﬁve
business units:
f t he Services-Mail-Parcels business unit (50.2%
of consolidated operating revenue) includes the
Company’s traditional business activities (domestic and
international delivery of mail and postal parcels as well
as press subscriptions throughout the country), and
also activities relating to advertising and business mail
and transportation and logistics solutions, particularly
for e-retailers (see Chapter 5, Section 5.1). As the sole
operator of the Universal Postal Service in France, the
Services-Mail-Parcels business unit serves 26 million
French households daily;
f t he GeoPost business unit (21.9% of the Group’s
operating revenue) handles the Group’s express business
in France and abroad, with its core business being
deferred parcels weighing less than 30 kg. Achieving
77% of its revenue outside of France, GeoPost offers a
complete range of local and tailor-made international
delivery solutions to companies (BtoB) as well as private
individuals (BtoC), including pick-up and drop-off points
(7,000 points in France and more than 8,000 in Europe –
see Chapter 5, Section 5.2);
f La Banque Postale (25.5% of the Group’s operating
revenue) operates in three areas; retail banking in
France, insurance and private wealth management.
Backed by 10.8 million customers, private individuals,
legal entities and local authorities, and as the successor
to La Poste’s Financial Services, La Banque Postale has
a unique position in the French market (see Chapter 5,
Section 5.3);
f La Poste Network includes La Poste’s 17,104 retail
outlets, which deliver postal, financial and telephone
products and services to retail customers in France
(see Chapter 5, Section 5.4). Wholly-owned or run
in partnership with local authorities or retailers, the
Network is the Group’s multi-business marketing
structure servicing its business units;
f t he Digital Services business unit (2.2% of Group
operating revenue) produces and sells the Group’s
digital solutions and services in the area of digital
transformation, digital marketing, desktop publishing
and digital trust. It is bringing the Group’s innovation and
transformation into an increasingly digital environment
(see Chapter 5, Section 5.5).
In each of its business activities, Le Groupe La Poste holds
strong positions in its different markets, all fully open to
competition since the full deregulation of the mail market
in 2011.
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 5.7.2). 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 for 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. 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 5.7.2.2).
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.
The Group’s presence throughout the country also grows
out of its substantial real estate assets (post offices,
ﬁnancial centres and administrative buildings, industrial
platforms) which constitute one of the largest portfolios in
France, by size. These property assets are in their majority
managed by Poste Immo (see Chapter 5, Section 5.6).
The Group’s responsible development strategy, is based
on respecting its customers’ diversity, job quality and
protecting the environment. Six values make up the Group’s
history and guide its action: openness, consideration,
equality, accessibility, proximity, service-orientation. These
values are the foundation of the trust that runs deep in Le
Groupe La Poste and its employees, and inscribe them in
the regions and the everyday life of the French people.
(1) Operating proﬁt/(loss) after share of net proﬁt from companies under joint control.
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Le Groupe La Poste proﬁle and selected ﬁnancial information
History and milestones in the development of the Group’s business activities
3.2
3
History and milestones in the development
of the Group’s business activities
Without going too far back in time, La Poste, as a company,
came from 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. Starting from 1881, the ﬁrst ﬁnancial activities were
extended to managing savings passbook accounts. In 1918,
postal cheques were introduced.
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
enabling 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 France’s 1959 Constitutional
Bylaw on Budget Acts.
In 1990, La Poste and France Telecom were given legal
entity status and financial autonomy by Act No. 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. Since 1990, it has been governed by a tripartite
Board of Directors operating under the provisions of the
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. In 2013, a new business contract for 2013-2017
was signed on 1 July (see Chapter 5, Section 5.7.2). In
2014, a new strategic plan was presented to the Board of
Directors on 28 January, followed by a presentation of the
Group’s new structure on 4 April and the ﬁnancial business
plan on 26 June (see Chapter 3, Section 3.4).
Le Groupe La Poste has changed deeply over the past
10 years: it has completely reorganised itself and has
undertaken the modernisation of its industrial and logistics
facilities in order to increase efﬁciency and quality as well
as introduce new services in a now 100% competitive
environment. It has enhanced its distribution network
through modernisation measures and by pooling resources,
in particular for local and Inter-Communal Postal agencies
(APCs) and Relais Poste outlets (RPs) (see Chapter 5,
Section 5.4.1.2). 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 Act 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,
which resulted in the creation and acquisition of
subsidiaries in its different business units, transformed
Le Groupe La Poste into a major services group while it
continues to ensure the public service missions assigned
to it under French legislation.
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 and the development of online commerce.
In 2010, in order to manage the new challenges in its
different markets, on 1 March, La Poste became a société
anonyme (public limited company, SA), in accordance with
the French Act of 9 February 2010. This transformation
enabled the Company to establish share capital and to
gain access to financing through capital increases, an
essential prerequisite to ﬁnance an investment plan and
major developments. 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 (CDC), 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
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11
3
Le Groupe La Poste proﬁle and selected ﬁnancial information
History and milestones in the development of the Group’s business activities
€600 million was made in spring 2013. These payments
have, in particular, allowed the Group to execute and
accelerate its development and innovation initiatives while
improving its ﬁnancial structure.
The Act 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 SA 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 SA pursuant to Article 29-4 of the
French Postal Act of 9 February 2010.
In addition, the four public service missions and general
interest missions assigned to La Poste were conﬁrmed by
the French Act of 9 February 2010. These missions deﬁned
by Article 2 of the French Act of 2 July 1990 as amended,
were previously guaranteed by the Act of 20 May 2005
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. La Poste
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and the French government’s public service commitments
were redeﬁned by the 2013-2017 business contract signed
on 1 July 2013: it provided for the maintenance of a large
scope of 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. 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 5.7.2.2).
2014 was marked by the introduction of the new strategic
plan known as “La Poste 2020: Conquering the Future”,
based on information learned from a broad-based
participatory initiative that consisted of consulting
all of La Poste’s stakeholders, including more than
150,000 employees, throughout all of 2013. The presentation
of this plan to the Board of Directors on 28 January was
followed by the announcement of a new Group structure
on 4 April, and then on 26 June a new ﬁnancial business
plan and action plans for each of the business units (see
Chapter 3, Section 3.4).
3
Le Groupe La Poste proﬁle and selected ﬁnancial information
Selected ﬁnancial information
3.3
Selected ﬁnancial information
The 2013 and 2014 selected ﬁnancial information presented
below is taken from Le Groupe La Poste’s consolidated
financial statements, which have been prepared in
accordance with IFRS and audited by the Statutory Auditors.
This information must be read in conjunction with the
following sections of the registration document:
f the consolidated ﬁnancial statements in Chapter 20;
f the Group’s ﬁnancial and operating review in Chapter 10;
f the cash ﬂow analysis in Chapter 11.
3.3.1
Consolidated income statement (selected data)
(€ million)
Operating revenue
2013 (a)
2014
22,163
100%
21,715
100%
719
3.2%
778
3.6%
Financial proﬁt/(loss)
(198)
-0.9%
(222)
-1.0%
Income tax
Operating proﬁt/(loss) after share of net proﬁt
from companies under joint control
(182)
(125)
Consolidated net proﬁt
339
431
Share in proﬁts of other equity associates
200
Attributable to non-controlling interests
NET PROFIT GROUP SHARE
0.9%
215
2.3%
624
27
513
1.0%
23
2.9%
(a) Amounts restated for the application of IFRS 10 and IFRS 11 (see Note 3 in Chapter 20).
Registration document 2014
LE GROUPE LA POSTE
13
3
Le Groupe La Poste proﬁle and selected ﬁnancial information
Selected ﬁnancial information
3.3.2
Consolidated balance sheet (selected data)
(€ million)
2014
2013 (a)
Intangible assets (including goodwill)
2,655
2,433
Property, plant and equipment
5,880
5,931
Investments in equity associates
3,075
2,741
208,181
197,500
Current banking assets
Other assets
6,572
7,055
226,364
215,661
Net debt (1)
4,005
3,805
Equity, Group share
9,088
8,615
Contingency and loss provisions
2,985
2,454
199,545
190,162
TOTAL ASSETS
Current banking liabilities
Other liabilities
TOTAL LIABILITIES
14,746
14,429
226,364
215,661
(a) Amounts restated for the application of IFRS 10 and IFRS 11 (see Note 3 in Chapter 20).
Net debt (1) is deﬁned in Chapter 10, Section 10.5 and detailed in Note 28.1 to the consolidated ﬁnancial statements —
Chapter 20, Section 20.1.
3.3.3
Changes to net debt (1) (selected data)
(€ million)
2014
2013 (a)
EBITDA
944
790
1,030
1,018
325
258
(880)
(1,548)
(171)
(171)
Cash ﬂows from operating activities
Of which dividends paid by La Banque Postale
Cash ﬂows from investing activities
(excluding acquisitions and sales of ﬁnancial assets held for investment purposes)
Of which La Banque Postale issuance of subordinated notes
Dividends paid to La Poste shareholders
(800)
La Poste SA capital increase
600
Net ﬁnancial interest expense
Other items
CHANGE IN NET DEBT
(1)
(149)
(163)
(30)
(73)
(200)
(337)
(a) Amounts restated for the application of IFRS 10 and IFRS 11 (see Note 3 in Chapter 20).
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 (1) 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 La Banque Postale for which this concept is not relevant.
14
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LE GROUPE LA POSTE
3
Le Groupe La Poste proﬁle and selected ﬁnancial information
Group strategy
3.3.4
Bank ratios
(in %)
(a)
Loan to deposit ratio Balance sheet total (in € billion)
Common Equity Tier 1 Ratio (b)
2014
2013
75%
67%
213
200
12.7%
10.1%
(a) Ratio of loans to deposits, deﬁned according to speciﬁc rules, excluding savings centralised at CDC.
(b) Phased-in ratio with application of transitional measures (fully loaded ratio is 14% in 2014).
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,
prepared for 2003-2007, developed the autonomy of
La Poste’s business activities by ensuring that each had
its own proper organisation. 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 establishment of La Banque
Postale in 2005 and the pension funding reform for state
employees working for La Poste in 2006. During the 20032008 period, the strength of the Group’s business portfolio
was demonstrated and Group earnings registered sustained
improvements. Nevertheless, the Group remained undercapitalised, 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 starting on 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 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 Act 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.
(1) Group net debt does not take into account La Banque Postale for which this concept is not relevant. Ratio of “net debt to equity” divides Group net debt
by Group share of equity.
Registration document 2014
LE GROUPE LA POSTE
15
3
Le Groupe La Poste proﬁle and selected ﬁnancial information
Group strategy
The new “La Poste 2020: Conquering the Future” strategic plan –
a growth and development plan at the service of customers
In 2013, due to the combined impacts of the digital
revolution and the economic and ﬁnancial crisis (rapidly
declining mail volumes, persistently low interest rates),
Le Groupe La Poste saw its business model generate
negative organic cash ﬂows for the ﬁrst time. Faced with
this divergence of its business model and the challenges
involved in both developing new business activities and
changing traditional ones, La Poste must evolve rapidly
and carry out in-depth changes with the support of all its
stakeholders.
Therefore, the Group launched a consultation of all of the
Company’s stakeholders (more than 150,000 employees,
union representatives, shareholders, Board of Directors’
members, associations of elected ofﬁcials, and consumers)
and organised “Citizen conferences”, an initiative rarely used
in France, by inviting three groups of people representing
rural and urban areas and micro-business entrepreneurs
to work together and share their expectations about
La Poste’s services in the future. At the end of this broadbased participatory initiative, on 28 January 2014, the Group
presented the main strategic priorities of its new strategic
plan called “La Poste 2020: Conquering the Future”.
The new plan provides for a major transformation starting
in 2014 based on a vision and a roadmap:
f this vision puts the human dimension and trust at the
heart of the customer relations, 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
simplify their future;
f the roadmap sets the priority of developing existing
business activities and expanding into new areas, while
at the same time assuring and modernising its public
service missions, developing new general interest
missions and building a S ocial Pact. Improving the
Company’s competitiveness represents a condition for
returning to sound ﬁnancial health.
In order to support this project focused on development,
on 4 April 2014, Le Groupe La Poste announced that it
was adopting a new structure around ﬁve business units:
Services-Mail-Parcels, GeoPost, La Banque Postale, Digital
Services, and La Poste Network (see Chapter 5). The Group,
through its corporate structures, ensures strong strategic
and ﬁnancial management, and guarantees cooperation
between the business units and strengthened coordination.
Each business unit then implements its strategy and
formalises its own programmes to meet the targets set. The
16
Registration document 2014
LE GROUPE LA POSTE
business units’ action plans as well as the Group’s ﬁnancial
business plan were presented to the Board of Directors on
26 June 2014.
For La Poste, restoring its economic health in a sustainable
manner to guarantee the future of the Company and its
employees entails accelerating all of its priority action
drivers, including:
f development, by accelerating the existing business
activities of each of the business units and capturing
new markets;
f performance, by controlling expenses and adapting
operating costs to changes in business activities,
particularly through a specific effort to reduce
headquarters’ costs as well as the creation of a new
Social Pact;
f synergies and cooperation between the business units to
enhance development, notably via the implementation of
ﬁve shared high-priority projects (see below).
Accelerate the development of existing
business activities
f The Services-Mail-Parcels business unit is developing
new home services by making its network of postmen
the largest connected network for local services while,
at the same time, continuing its Universal Postal Service
mission with a high standard of quality. With the intention
of becoming the partner of choice in e-commerce and a
major player in urban logistics, La Poste also wants to
add value to “media mail” and simplify the lives of French
people by offering them useful innovations: combined
Mail-Parcels range for documents and merchandise,
parcel collection from household letterboxes, home
delivery options, etc.
f The GeoPost business unit is focusing on bolstering its
position in the express market in France and developing
its combined network (“to B” and “to C”) in Europe and,
to this end, continually expanding its service offerings:
interactive delivery, developing pick-up and drop-off
points, Saturday delivery in Germany, Sunday delivery
in the United Kingdom, return solutions in Germany,
developing an automated parcel lockers network.
GeoPost intends to reproduce its European model in
other key regions around the world, while seeking to
connect these regions to the European continent.
Le Groupe La Poste proﬁle and selected ﬁnancial information
Group strategy
f La Banque Postale is accelerating its development in
all of its markets: private individuals, professionals,
corporate and local authorities. For example, by the
end of the 2020 plan, 1,000 advisors for high net-worth
customers and 1,000 advisors for professional customers
will have been deployed throughout the country. At the
same time, La Banque Postale is continuing its banking
accessibility public service mission in the midst of
its modernisation. A single management structure
for La Banque Postale and the Network is already
in place and aims to bring banking responsibility as
close to customers as possible in post offices. With
a plan to invest heavily in information systems and
digital technology, La Banque Postale is ﬁnalising the
implementation of its physical channels into a complete
omni-channel environment.
f The La Poste Network business unit is striving to
become a benchmark in services and commercial
development, prioritising banking, and it will serve
each of the Group’s business units while carrying out its
public service missions. New local retail outlets will be
developed, including in urban areas: implementing new
partnerships (Urban Relais Poste outlets) and new post
ofﬁce layouts, including the creation of new spaces for
professional customers. In rural and semi-rural areas,
the Group will strengthen the pooling of its resources
through innovative partnerships. The Network will also
simplify offerings and customer pathways within its retail
outlets. La Poste Mobile, which is distributed in post
ofﬁces, aims to have more than two million customers by
2017, and is continuing its development with customeroriented innovative offerings.
f The newly created Digital Services business unit
will be developed around three major focus areas:
the digital transformation of both the companies’
operational processes and their customer relations,
the simplification of the customer experience online
and the development of online services, including the
launch of a service platform for micro-businesses and
SMEs. The Digital Services business unit is building its
customer knowledge database in France and developing
new everyday digital service platforms. As a trusted third
party, La Poste will also be offering each French person
a digital identity, a “laposte.net” email address and a
digital safe, as part of a public utility mission. Lastly, to
incorporate the digital revolution into the Group, La Poste
will enable each employee to adopt the culture, methods
and useful tools both for personal use and to support
customers.
3
Capture new markets
La Poste has genuine advantages to capture new markets:
values and an image of trust, assets from the business
unit s’ diversity and synergies within its networks, its
employees’ commitment and knowledge, its shareholders’
stability, and expertise in where the physical and digital
worlds meet.
In 2014, La Poste chose to explore opportunities to seize
and development actions to implement more systematically
as part of five Shared High-Priority Projects (PPC)
pertaining to:
f energy transition;
f e-commerce;
f urban logistics;
f modernisation of public action;
f knowledge of individual customers.
By working in these new areas across entities, and by
working in a more innovative manner, Le Groupe La Poste
aspires to develop new services in line with the new
expectations of customers, citizens and regions. The key
challenge remains the relevance of missions and services
to the digital era, with the goal of rapidly completing these
priority projects.
An initial illustration of this proactive approach is the
signing of a research and development partnership between
the Vendée General Council and Le Groupe La Poste to
support the energy transition of the general public. This
partnership is intended to implement a tool and actions
to disseminate information and raise awareness among
individual home owners regarding making their homes
more energy efﬁcient.
As with all Group business activities, these new projects
will be undertaken in the context of its Corporate Social
Responsibility policy.
Ensure, modernise, and balance public
service missions
Le Groupe La Poste is responsible for four public service
missions which are central to its model. La Poste has
planned to further improve quality of service, reinforce its
ﬁght against ﬁnancial exclusion and lead discussions with
the French government on modernising its public service
missions.
Fair compensation for public service missions will be
essential to support the Company’s efforts to restore the
convergence of its economic model as well as a funded
Universal Postal Service that maintains a high quality of
service under the framework deﬁned by the regulator.
Registration document 2014
LE GROUPE LA POSTE
17
3
Le Groupe La Poste proﬁle and selected ﬁnancial information
Group strategy
Develop new business activities
in the public interest
La Poste wants to expand into new areas of general interest.
As part of the shared high-priority projects (see above), the
Company is currently investigating several opportunities
based on the values of trust and accessibility that could
eventually give rise to new business activities: participating
in the energy transition, creating a trusted third-party
offering, delivery of general interest services as part of the
modernisation of the public action (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/or by the postman). On 25 February 2015, La
Poste announced that it was looking into the possibility of
opening up its post ofﬁce network to operators and local
authorities hoping to pool access to their services (sharing
of material and human resources) in local public service
areas, as part of a proximity strategy.
Following the inter-ministerial committee on regional
equality held on 13 March 2015, La Poste made a
commitment with the French government to accelerate
the roll-out of public service areas as part of a partnership
which will enable La Poste to welcome 1,000 public service
areas in its post ofﬁces by the end of 2016.
Develop and negotiate a Social Pact
Through this strategic plan, La Poste is developing the
means to control its future, and one of its pillars is to make
each employee a key participant and beneficiary of this
transformation through a Social Pact comprising six areas:
training, ﬂexibility, fairness, proximity, solidarity and trust
in the context of expanding strategic and social dialogue.
Over the period of the 2014-2020 strategic plan, Le Groupe
La Poste has planned substantial training efforts to
encourage all forms of career development: new skills, new
jobs and new career paths, while continuing to enhance the
quality of life at work of all its employees.
Improve the Group’s competitiveness
and restore its economic health
In the end, in order to be sustainable and maintain its
economic health, the Group must constantly strive to keep
costs down. Cutting back on overheads, variabilising costs
more according to the business activity and generating
savings through inter-business unit synergies are thus key
challenges.
In this respect, on 24 February 2015 it announced plans to
merge group headquarters over the coming months as part
of its Maison La Poste project.
18
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LE GROUPE LA POSTE
Information
about the Company
4.1
4
Company name
20
4.2 Registration place and number
20
4.3 Date of incorporation and duration of the Company
20
4.4 Registered ofﬁce, legal status and governing law applicable
20
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LE GROUPE LA POSTE
19
4
Information about the Company
Company name
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 No. 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 No. 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
4.4.1
Registered ofﬁce, legal status and governing law
applicable
Registered ofﬁce
The Company’s registered ofﬁce is located at 44, boulevard de Vaugirard, 75015 Paris, France.
The telephone number for the registered ofﬁce is +33 (0) 1 55 44 00 00.
4.4.2
Legal status and governing law applicable
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 companies, unless there have been speciﬁc exemptions such as those provided for
in Act No. 83-675 of 26 July 1983 on the democratisation of the public sector, Act No. 90-568 of 2 July 1990, as amended by
Act No. 2010-123 of 9 February 2010, or by Decree No. 2010-191 of 26 February 2010 amended by Decree No. 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 5.7 of this
document.
20
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LE GROUPE LA POSTE
Overview
of business activities
5.1
Services-Mail-Parcels
5
22
5.2 GeoPost
36
5.3
46
La Banque Postale
5.4 La Poste Network
62
5.5
Digital Services
68
5.6
Real Estate
77
5.7
Regulations
81
5.8
Social and Environmental Responsibility
95
5.9
Exceptional events
107
5.10 Dependence on patents
107
Registration document 2014
LE GROUPE LA POSTE
21
5
Overview of business activities
Services-Mail-Parcels
Le Groupe La Poste is a multi-business group structured
around ﬁve business units: Services-Mail-Parcels, GeoPost,
La Banque Postale, Digital Services, La Poste Network.
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 units and subsidiaries. While each business unit
has its own resources, they are all strongly interlinked with
one another.
5.1
5.1.1
The strategic and ﬁnancial management of the business
units is ensured by the Group, which is responsible for
cooperation among the business unit s and which is
focused on strategic functions so as to further strengthen
coordination. Five major shared high-priority projects
were deﬁned in 2014 and managed across and among all
entities: e-commerce, energy transition, modernisation of
public action, urban logistics and getting to know individual
customers better.
Services-Mail-Parcels
General points and key ﬁgures
FINANCIAL DATA
2014
(€ million)
2013
pro forma
2014/2013 change
amount
%
Revenue
11,395
11,599
-204
-1.8%
External revenue
11,131
11,356
-225
-2.0%
Intercompany revenue
264
243
+21
+8.5%
(a)
419
546
-127
-23.2%
OPERATING PROFIT
(a) Operating proﬁt after share of net proﬁt of companies under joint control (application of IFRS 10 and IFRS 11 as at 1 January 2014, a pro forma income
statement was created as at 1 January 2013).
OPERATIONAL DATA
2014/2013 change
Volume of addressed postal items (in millions)
Number of unaddressed postal items (in millions)
Number of parcels (in millions)
22
Registration document 2014
LE GROUPE LA POSTE
2014
2013
in volume
12,880
13,668
-789
-5.8%
9,353
9,784
-430
-4.4%
269
277
-7
-2.7%
%
Overview of business activities
Services-Mail-Parcels
Le Groupe La Poste is the 2nd largest postal operator in
Europe, in value and in volume: its Services-Mail-Parcels
business unit is the largest in terms of revenue and
employees (50% of Group operating revenue and 57% of its
employees in 2014).
The business unit is active in the areas of mail, parcels and
logistics, in France and abroad, and it is also positioned in
the private individual home services market.
5.1.2
5
It delivers mail and parcels six days a week (1) throughout
all areas of the country, and contributes to disseminating
opinions by delivering newspaper mail subscriptions and
election materials and documents.
It serves 38.7 million letterboxes in 36,600 French
municipalities, thanks to its 75,000 postmen (2) and
2,500 delivery staff.
Structure and networks
5.1.2.1 Structure
The Services-Mail-Parcels business unit is organised
around its markets under five business divisions, which
group together the parent company’s Departments and the
subsidiaries:
f the Services division ensures the promotion and
development of the postmen network for all customers,
private individuals, professionals, companies and
administrations; it comes up with new local services
adapted to the population’s needs for the entire country;
f the Mail division covers marketing communications and
business mail for companies. It supports advertisers in
implementing their communication process with their
customers (delivery of advertising materials, coupons,
samples); to this end, it also includes the Mediapost,
Mediapost International and Sogec subsidiaries.
Mediapost achieved €507 million in revenue in 2014 via
ﬁve subsidiaries, which together have 8,416 employees
in France and in Europe (Belgium, England, Portugal,
Romania, Spain);
f the Parcels division covers La Poste’s postal parcels
delivery activities in France, in particular under the
Colissimo brand. Parcels was included within the
Parcels-Express Business Line until 2013. In 2014, the
organisation of the Group into ﬁve business units led to
the combination of ColiPoste (now called the “Parcels
d ivision ”) and Mail within the Services-Mail-Parcels
business unit;
f the Logistics division creates, implements and
develops the logistics network in terms of optimisation
and development (in particular for e-commerce); it
creates synergies between the resources of the parent
company and the subsidiaries of ViaPost Services, which
performs three primary business activities: newspaper
and magazine processing activities (direct bulk mail
and home delivery), logistics activities (shipping mail,
preparing orders, e-logistics) and business activities
related to eco-mobility transport. ViaPost Services
achieved almost €502 million in revenue in 2014, and
has 2,357 employees;
f the International division develops the cross-border
mail and small merchandise business activity marketed
in France via La Poste (€558 million in revenue in 2014)
and outside France via the joint venture, Asendia JV
(€452 million in revenue in 2014) (3), which is 50-50 owned
by La Poste and Swiss Post.
(1) 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). The Mail division
(with a capital M) refers to the Group’s business activity and its markets have historically been the collection, transportation and delivery of mail (with a
lower case m).
(2) Permanent staff.
(3) Asendia JV markets mail processing, routing and distribution services outside France for all destinations (including France). In contrast, the parent
company is directly responsible for marketing in France. In application of IFRS 11 as of 1 January 2014, Asendia JV revenue was not recorded in the
revenue of the Services-Mail-Parcels business unit.
Registration document 2014
LE GROUPE LA POSTE
23
5
Overview of business activities
Services-Mail-Parcels
f transportation combines various modes of transport
5.1.2.2 Networks
5.1.2.2.1 Standard logistics process
Mail and parcels follow a standardised several-step
process:
f collection/consolidation consists of collecting postal
items deposited in yellow street letterboxes and
collecting mail and parcels from companies and from
mail centres six days a week, before shipping everything
collected to processing platforms;
f sorting/processing involves processing items according
to their geographic delivery area, then their destination
address. Sorting on departure includes mechanically
separating all of the items collected in a geographic area
into batches corresponding to homogeneous delivery
areas. Sorting on arrival and delivery preparation
consist of dividing up the batches by delivery centres
and delivery round.
At the industrial level, the processes are differentiated
for mail and parcels and may therefore be carried out in
different platforms:
− domestic parcels are handled by 14 parcels platforms,
which receive the collected parcels and sort them
according to their destination. For import and export
parcels, processing is handled in an international
trade centre dedicated to this type of parcel and
located in the Greater Paris region (in Chilly-Mazarin).
In addition, trade ofﬁces have been established at the
platforms closest to the borders,
− mail is processed in 42 Industrial Mail Platforms
(PIC) for sorting on departure and on arrival; 222 Mail
Preparation and Delivery Centres (PPDC) also handle
pre-sorting operations;
24
Registration document 2014
LE GROUPE LA POSTE
(plane, ground and rail) adapted to the urgency of the
item and the distance of the delivery areas in order to
ship everything to the distribution centres. Flows are
maximised by various breakdown and separation points
known as transport hubs.
In 2014, 2.5% of mail flow was dispatched by plane,
91.3% by ground and 6.2% by rail. These ﬁgures are 2%,
98% and 0% for parcels, respectively;
f deliveries made in France by postmen or delivery
staff consists 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.). The latter can also sometimes be put on hold
at the post ofﬁce in one of the 17,000 La Poste public
outlets, or in the case of parcels, delivered to one of the
35 Cityssimo (automated lockers) or to one of Pickup’s
7,000 pick-up and drop-off points (Pickup is a subsidiary
of GeoPost, see Chapter 5, Section 5.2.2).
Regardless of the delivery point, delivery is made via
2,939 M ail D elivery P latforms (PDC) and 60 Parcels
Offices. In fact, the Parcels division has a network of
dedicated offices that mainly deliver to high-density
urban areas (cities with more than 150,000 inhabitants)
where delivery requires a speciﬁc organisation (in order
to handle high-traffic volume, the density of delivery
points, parking and building access difﬁculties, frequent
absence of recipients, etc.). In rural areas, the postmen
deliver parcels.
Internationally, deliveries are assured by other postal
operators under long-standing agreements of the
Universal Postal Union or special agreements with
certain postal operators, or for parcels, by private
operators, including GeoPost subsidiaries, for certain
countries.
Overview of business activities
Services-Mail-Parcels
5
5.1.2.2.2 Logistics networks
The Mail logistics network
Mail shipping is backed by a large logistics network, both on own account and partly sub-contracted.
Collection from
street letterboxes
Collection of mail and
parcels from companies
Sorting of mail by postman
rounds (in PIC (2)) and sorting of parcels
by delivery platform (in PFC (3))
Delivery to companies
6 days/week
Consolidation
in PPDC (1)
Industrial drop-off
into PIC (2) for mail
and PFC (3) for parcels
PPDC (1) or PDC (4)
or ACP (5)
Delivery to individuals
6 days/week
Sorting by geographic
region in PIC (2) for mail
and PFC (3) for parcels
Internal source.
(1) PPDC: Mail Preparation and Delivery Platform.
(2) PIC : Industrial Mail Platform.
(3) PFC : Parcels Platform.
(4) PDC : Mail Delivery Platform.
(5) ACP : Parcels Ofﬁces.
Collection
f
f
127,655 street letterboxes
76,500 pick-up and delivery
customers
Transport
f
f
f
f
f
f
f
f
f
f
f
328 lorries
8,309 road links
3 TGV (high-speed trains)
8 planes serving
10 destinations
38,793 internal combustion
vehicles
9,440 motorcycles
8,144 bicycles
4,569 electric vehicles
1,318 quadéos (electric quad
bikes)
18,476 electric bicycles
100 Staby
Processing
Delivery
Nearly 2,669 sites and 492
centres:
f 2,939 Mail Delivery Platforms
(PDC) and mail centres
f 222 Mail Preparation and
Delivery Platforms (PPDC)
f 42 Industrial Mail Platforms
(PIC) and Mail Processing
Platforms (CTC)
f
f
f
f
75,000 postmen
56,491 rounds
38.7 million letterboxes
served six days out
of seven
More than 1.5 million
kilometres covered
per day by postmen
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Overview of business activities
Services-Mail-Parcels
The Parcel logistics network
seasonal in nature (business activity increases by 50% in
December), the Parcels division supplements its industrial
base during these peak seasons with partners.
The Parcels division’s industrial facilities, which is unique
in France, enables it to process very substantial parcel
volumes and dispatch them to the various distribution
facilities that criss-cross the country. Traffic being very
Collection
f
Transport
250 pick-up and delivery
customers
f
f
f
5.1.3
520 bulk trailers
400 daily road links between
sorting centres
1,800 vehicles
Processing
f
f
14 parcels platforms
1 platform for international
parcels
Delivery
f
f
f
2,500 delivery staff
60 parcels ofﬁces
an average of 1 million
parcels delivered per day
Markets and business activities
The Services-Mail-Parcels business unit is mainly positioned in communication and BtoC delivery in eight market segments,
grouped into ﬁve business divisions:
Market segments
Business divisions
% of 2014 revenue
Business communications
Marketing communications
Mail
71.2% of revenue
Parcels
13.8% of revenue
Private communications and stamp-collecting
Parcel delivery services
Logistics and transportation
Logistics
6% of revenue
Home services/Energy transition
Services
4.1% of revenue
Cross-border mail
International
4.9% of revenue
Press
La Poste has numerous advantages and strong positions in these areas.
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Overview of business activities
Services-Mail-Parcels
5.1.3.1 Business communications market
The business communications market in France was
estimated at more than €30 billion (1) in 2014. This market
is made up of various communication channels, including
mail postage, telephone services, Internet.
With €5,210 million in revenue mainly achieved in
relationship mail postage, the Services-Mail-Parcels
business unit is a major player in business communications
management. Although relationship mail is in direct
competition with digitised solutions, it still has numerous
uses: sending quotes, contracts, bank statements, invoices,
after-sales services, managing litigation and disputes, etc.
A media that is strongly rooted in practices, guaranteeing
secure and confidential exchanges, mail remains a
universal and accessible media, and even unavoidable for
some uses.
5.1.3.2 Marketing communications
market
The marketing communications market in France was
estimated at €30 billion in 2014 (2). It includes expenditures
by advertisers regardless of the communication medium
used: media mail or other traditional communication media
(television, press, radio, billboards and Internet).
This market continued to shrink in 2014, but less than in
2013 (-4% over the ﬁrst three quarters of 2014 vs -6.2% over
the same period in 2013), due to the economic crisis and
the streamlining of communication expenses by advertisers.
Digital media and formats are winning market share every
year (6% in 2013 vs 5.7% in 2012), to the detriment of
traditional formats, and their change in value remained
positive (+3.4% in 2013, +5% in 2012).
The Services-Mail-Parcels business unit captures 6% (3) of
the French advertising market on average. Its addressed
and unaddressed advertising mail offerings meet
companies’ marketing communications objectives (mail,
catalogue, couponing, samples). Mail is a media that is
both clever (targeted and customisable) and powerful (mass
media), with high recall performance and sales incentive.
5
With €1,564 million in revenue in this market in 2014,
La Poste remained a major player in the market and
its subsidiary Mediapost was the leading distributor of
printed (unaddressed) advertising material in France, with
9.35 billion items (printed material and samples) delivered
per year.
5.1.3.3 Press
La Poste is a major player in press distribution. More than
8,000 publications, i.e. almost all of the titles approved by
the French Joint Commission for Publications and Press
Agencies, use its services to deliver their publications.
Press distribution, which has decreased due to the
digitisation of publications and usage changes to digital
practices, can be carried out through various channels,
two of which La Poste has invested in: home delivery
(multi-publication night and day press home delivery to
subscribers) and direct bulk mail (receiving, processing and
shipping press subscriptions mailed in France and other
countries for the parent company).
La Poste achieved €581 million in revenue for activities
involving preparing and shipping press. La Poste shipped
and delivered 1.23 billion copies, 1.15 billion of which were
part of its public service mission, i.e. approximately 30% of
press distribution in the country. Direct bulk mail was thus
the second largest distribution method after news-stand
sales.
La Poste is progressively strengthening its positions in
home delivery activities: in April 2014, the home delivery
companies of Groupe Amaury and Le Groupe La Poste,
SDVP and Neopress, respectively, ﬁnalised their merger
agreement. The new joint venture, called Proximy (75% held
by Groupe Amaury and 25% by Le Groupe La Poste), aims
to reinforce the range of home delivery services offered
to press publishers and subscribers, and to develop new
service offerings in the local delivery sector in the Greater
Paris region (combined annual volume of more than
130 million press copies) and in Oise. This alliance of the
two main players in the Greater Paris region press home
delivery reaffirms and reinforces Le Groupe La Poste’s
commitment to newspaper and magazine home delivery.
(1) Internal analyses.
(2) Source: Irep-France Pub (September 2014) – 2014 Forecasts.
(3) 2013 ﬁgure.
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5
Overview of business activities
Services-Mail-Parcels
5.1.3.4 Parcel delivery services
to private individuals
In 2014, La Poste tested and rolled out new services for
end-customers in order to meet customer expectations:
f shipping parcels from letterboxes, which consists of
The private individual parcel delivery market in France
was estimated at 387 million parcels, up 4.5% on average
over the last three years. This growth, which was limited
compared to the growth of e-commerce (1), resulted from
the net impact of two trends: a decline in mail order sales
(VPC) and the growth of e-commerce.
The number of parcels distributed continues to increase
and e-commerce is the market’s driving force: the number
of active merchant sites has grown from less than 50,000
at the end of 2008 to more than 154,000 in 2014. The
percentage of households receiving parcels increased
to 85% with the average number of parcels received per
household now reaching 16 per year. In 2014, distance sales
continued growing, with its market share now reaching
8% of household expenditure (excluding food), which
still allows for signiﬁcant growth potential for the future.
E-commerce has completely transformed consumption
patterns, and it has also impacted the structure of product
and service offerings, the structure of online presentation
and various delivery options: competition from players in
the out-of-home market (pick-up and drop-off points) and
express delivery specialists, and the rapid development of
marketplaces reﬂect the need for speed, simplicity and low
prices.
La Poste holds a key position in the parcel and small goods
transportation and delivery market with the Parcels division.
As a historic operator in the distance sales market, the
Parcels division is an indispensable partner in e-commerce
thanks to its expertise and delivery process knowledge
(especially in the “last mile” of the home delivery process),
which make it the leader in the French market, with
269 million parcels and around 66% (2) of market share in
the business and private individual (BtoC and CtoB) delivery
segments. The main products are:
f Colissimo and So Colissimo (89% of volumes handled
in 2014), which includes the key services (fast, twoday home delivery, online parcel tracking and ﬂat-fee
insurance either included or optional). So Colissimo
offers a 48-hour multi-option delivery service in
mainland France;
offering individual customers the option to collect their
parcels (with postage paid in advance online) directly
from their personal letterbox;
f delivery notiﬁcation, which informs recipients of parcel
availability by email and/or text message.
5.1.3.5 Logistics and transportation
The logistics and transportation market is driven by
e-commerce, the development of connected commerce,
ﬁne-tuned logistics for small goods and green business (e.g.
collection of end-of-life products for recycling).
The Services-Mail-Parcels business unit offers several
logistics and transportation solutions:
f shipping of mail in France to processing platforms on
behalf of the parent company;
f preparation of omnichannel orders (BtoC, BtoB and
BtoRetail), managing transportation and customer
relations for brick and mortar retailers and e-retailers;
f recycling logistics.
Additionally, in June 2014, La Poste announced that it would
invest €100 million between 2014 and 2016 to develop
combined freight to transport mail, small parcels, and
press in France. This plan is based on a multimodal strategy
which combines rail and road transport, air transport (only
for next-day deliveries that require it) and, going forward,
river transport. As part of this plan, La Poste is building
a new versatile multimodal transportation platform in
the Greater Paris region. This platform, which will be the
hub of a new combined freight network, will also handle
e-commerce logistics activities with the preparation and
shipping of e-commerce orders to customers in France and
all over the world. Its opening will coincide with the TGV’s
(high speed train) discontinuation of mail transport, which
has been the chosen means of transport for 30 years, but
is no longer suited to customers’ new uses.
f Coliéco piloté: economical corporate parcel service with
no guaranteed delivery times.
The Parcels division achieved €1,566 million in revenue in
2014 and has 5,900 employees (own staff).
(1) In 2014, e-commerce in Western Europe grew 15% to reach €204.7 billion (source: B2C E-Commerce Europe Report Western Europe 2014).
(2) Internal sources.
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Services-Mail-Parcels
In the e-commerce logistics market, ViaPost Services holds
signiﬁcant positions with its subsidiaries Orium and Morin
Logistic (merged in 2014 under the name ViaPost). Le
Groupe La Poste is thus recognised for its proven expertise
in e-logistics (inventory management and order preparation
for online sales companies) and is the leader in service
logistics for e-retailers in France (1).
Revenue growth was achieved from momentum from both
new click & mortar customers and pure players, as well as
from ViaPost’s entry into the BtoRetail logistics segment.
This success was made possible through innovations
developed by ViaPost and the Services-Mail-Parcels
business unit, and the launch of the ViaDirect offer, which
enables brick and mortar retailers to supervise their
warehouse logistics via a web and mobile application,
providing them a real-time view of orders and guaranteeing
control over the entire shipping process.
For recycling logistics, Le Groupe La Poste is slowly
strengthening its positions: following the acquisition of
Nouvelle Attitude (2) in late 2011, Mail rolled out 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 local authorities
subscribed to this offer, which was deployed simultaneously
in the Group’s facilities. Recy’go has now been rolled out
across France and has already achieved convincing results,
with more than 2,845 corporate and regional authority
customers, and the collection of 15,994 tonnes of paper in
France at 31 December 2014. Since 15 October, La Poste
has offered the new Recy’go Destruction offer to its
customers, which is speciﬁcally aimed at destroying their
conﬁdential documents. After being collected, the papers
are stored in a secure location, then shredded to then be
recycled. The customer can monitor the elimination of its
papers and receives a certiﬁcate of destruction.
La Poste also offers various services related to eco-mobility:
consulting services and optimisation of the use of electric
vehicles in corporate ﬂeets, development of training tools
for eco-driving, transport and eco-responsible mobility
consulting.
5
5.1.3.6 Home services and energy
transition
Establishing daily contact with private individuals and
companies, postmen are trustworthy professionals who
have excellent knowledge of the populations they visit
during their rounds. This competitive difference, namely
proximity, makes La Poste a favoured local player in home
services.
La Poste aims to transform its network of postmen to
diversify its business activity in home services and the
circular economy, which constitute major stakes in a digital
society characterised in particular by an ageing population.
La Poste is innovating by creating a progressively broader
range of services, speciﬁcally by relying on the connected
postmen network: equipping postmen with smartphones
(Facteo) is a strong sign of the evolving profession, its
modernity and capacity to respond to new customer
expectations in terms of local service and relations of trust.
The roll-out of this new work tool, which began in 2013,
continued throughout 2014: more than 40,000 postmen were
equipped with Facteo at the end of 2014, and 100% will be
equipped in 2015.
Facteo helps postmen with their daily operations and offers
new functionalities for convenience, quality and innovation
to serve all of La Poste’s customers. Three applications are
already implemented: one allows for tracked items to be
signed for, one is dedicated to proxies and a third manages
mail forwarding.
Facteo is also intended to support changes in the industry,
and particularly to help enhance the range of new home
services for private individuals, such as Cohésio (a service
involving regular home visits by postmen to households
with isolated and/or inﬁrm members), Relevéo (a service
to read energy meters on behalf of companies in the sector),
Faciléo (collecting items, delivering items or exchanging
items, etc.).
(1) External sources (Xerﬁ Precepta study, “The last mile in e-commerce logistics”, Nov. 2013) and internal analyses.
(2) Operating subsidiary for the Recy’go offering.
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5
Overview of business activities
Services-Mail-Parcels
5.1.3.7 Private communications market
This market covers all of the communication flows
issued by private individuals, as well as stamp-collecting.
The digitisation of flows and the development of new
Internet access technologies is significantly changing
communication behaviour.
To cover the needs of these customers, the Services-MailParcels business unit offers a range of products, including
the sale of stamps, pre-paid mail products, Lettre MAX and
other small parcels. It achieved €1,338 million (1) in revenue
from private individuals in 2014, €356 million of which from
stamp-collecting.
5.1.3.8 Cross-border mail market
The cross-border mail market was estimated at
€6.7 billion (2) worldwide in 2013. Flows are concentrated
in three regions, the United States, Europe and Asia, while
the top 10 exporting countries generate over 80% of total
volumes, including 50% for the top four. They remain mostly
continental and reflect trading patterns: almost 75% of
European cross-border ﬂows remain in Europe, while 40%
of exports from North America remain in the continent. This
intra-continental concentration is experiencing a decline in
favour of transcontinental ﬂows.
The market has seen a regular decrease in number of
items, but remains stable in value due to an increase in the
average weight of items (small packages and catalogues).
The market for mail items (from 0 to 2 kg) has experienced
opposing trends depending on the segment. Traditional
correspondence (business mail or communication) is
declining due to the use of electronic means instead.
Shipments of small volume objects, the majority of which
weigh less than 2 kg, are sharply increasing due to the
growth of e-commerce, a development which should
also be facilitated within the EU and the OECD, following
the Commission’s white paper on e-commerce, through
the e-CIP programme (3). Furthermore, China’s growth is
rising rapidly in this segment with approximately 10% of
international ﬂows of small packages.
In terms of competition, 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 routers (e.g.
Pitney and IMX, etc.) and integrators (e.g. UPS, FedEx, etc.).
The business unit achieved €558 million in revenue in 2014
on the cross-border mail market. Selling its products via
Asendia France (regarding products sold in France) and
Asendia JV (excluding France), its position remains very
strong in France on import ﬂows (a reserved sector until the
end of 2010) but there is an active competition on exports.
For international flows, Asendia is the second-largest
provider of postal services outside its own borders, just
behind Deutsche Post -DHL: operating in three main
markets, the United States, Europe and Asia, in 2014,
Asendia JV achieved €452 million in revenue on three
continents and in 15 countries through its network of
25 subsidiaries, which offer delivery services to 220
destinations. A 50-50 joint venture held by Swiss Post and
La Poste, Asendia JV relies on the two partners’ expertise
and networks as well as their ability to support international
customers in shipping mail, catalogues, newspapers and
goods.
(1) Revenue including all sales channels (La Poste Network, Internet, large and medium-sized retail spaces, tobacco retailers, etc.) for a relatively wide
range of products (such as Lettre MAX, pre-paid letters, etc.) and with an average size of items often exceeding 20 g.
(2) Sources: annual report of DP-DHL on world export ﬂows; internal sources (2012).
(3) e-CIP: European customs information portal, a single access point for useful and practical information on transporting goods in and out of the EU.
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Services-Mail-Parcels
5.1.4
5
Special regulatory issues and business model
5.1.4.1 Special regulatory issues
5.1.4.2 Business model
The fully competitive environment in which the ServicesMail-Parcels business unit is developing is strictly regulated
and controlled.
5.1.4.2.1 The business model of Mail
In fact, the business unit is responsible for carrying out two
of La Poste’s four public service missions: the Universal
Postal Service, of which it is the sole operator in France
for a 15-year period starting from 1 January 2011 (see
Chapter 5, Section 5.7.2.1) and the press transportation and
delivery mission (see Chapter 5, Section 5.7.2.3).
Revenue model
Revenue from Mail includes postage from items of
correspondence (business, marketing and communication,
inter-personal, international, press) and services provided
(collection, special deliveries and letterbox management).
Postage accounts for the bulk of revenue (89%).
The Universal Service mission assigned to La Poste by the
French government is overseen by ARCEP (French regulator
of the electronic communications and postal sectors), which
provides price regulation, and in particular, checks the
quality of service (1), monitoring compliance with respect to
the targets set by the Minister (2).
There are different ranges with different postage prices.
Total volumes and price adjustments are the primary causes
of changes in revenue. Prices are governed by multiannual
price caps (see Chapter 5, Section 5.7.2.1.2). Changes in
the product mix (i.e. volume changes of differently priced
products) affect revenue to a lesser extent.
The quality of service for the main products has signiﬁcantly
and regularly improved over the last few years. In 2014,
quality of service for Priority Mail reached a high level of
86.7%, Green Mail quality of service reached 93.2% for twoday delivery, while Registered Mail reached 94.6% for twoday delivery with a very high quality of service in next-day
delivery. As for Colissimo counter, quality of service reached
95% for two-day delivery.
Volumes
In 2014, the percentage of Mail revenue accounted for by the
Universal Service rose to almost 76%, up slightly compared
with 2013.
Press transportation is also a structuring business activity
for La Poste: it represented 6% of Mail revenue for La Poste
and 9% of mail volumes delivered, but 22% of the weight in
the postmen’s pouch.
Two major factors, one economy-driven and the other
structural, are contributing to the decline in volumes:
f unfavourable economic conditions adversely affecting
postal activities (relationship mail and advertising mail)
which, by nature, correlates with GDP; in addition,
companies and the public sector are seeking to reduce
costs, particularly by streamlining their mail shipments;
f the rapid digitisation of BtoB exchanges linked to the
simpliﬁcation of processes and the growing popularity
of electronic exchanges among individuals represent
examples of transformations in exchanges and
communication trends, which affects all sectors.
(1) Quality of service levels refer 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) Quality of service is governed by a speciﬁc legal provision published in a decree issued by the Minister responsible for postal services, which sets the
quality of service targets for the Universal Service . 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
compensation is directly linked to service quality. An independent body (IFOP in 2014) assesses the quality of service.
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Overview of business activities
Services-Mail-Parcels
2014/2013 change
2014
2013
amount
%
Relationship mail
6.69
6.99
-0.30
-4.3%
Single-piece mail
1.73
1.81
-0.08
-4.3%
Advertising mail
3.23
3.58
-0.34
-9.6%
Press
1.23
1.29
-0.07
-5.0%
12.88
13.67
-0.79
-5.8%
(domestic addressed traffic, in billions of mail items)
ALL FLOWS COMBINED (EXCLUDING ELECTIONS)
La Poste is expecting a 50% decrease in mail volumes
over the period between 2008 and 2020, from 18 billion to
9 billion.
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:
f the service quality targets for priority deliveries require
Pricing policy
To ensure the sustainability of the Universal Service, and
to maintain a high quality of service, in an environment
with rapidly declining mail volumes, La Poste increased
its prices: following a favourable opinion by ARCEP, mail
prices rose 3% on average on 1 January 2014, and parcel
prices went up 2.9% on average for mainland parcels on
1 March 2014.
It became evident that price increases were inevitable, in
addition to considerable commercial development efforts
and adapting organisations to decreasing mail volumes.
During the ﬁrst half of 2014, La Poste and ARCEP reviewed
the multiyear price control system covering the 2013-2015
period (see Chapter 5, Section 5.7.2.1.2) and they agreed on
the necessity to deﬁne a new one. The new multiyear price
control system, implemented for a four-year period (from
1 January 2015 to 31 December 2018), therefore deﬁnes
a pricing framework that is equal to the consumer price
index increased by 3.5 points a year on average on Universal
Service prices, with a possible annual price ceiling. It is
within this context that La Poste announced an average
price increase of 7% for mail as of 1 January 2015.
Cost structure
Despite the increase in automated processing, the parent
company’s business is still highly labour-intensive.
sorting platforms close to the delivery areas. The number
of such platforms results in high ﬁxed costs (real estate
and overhead costs);
f 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;
f the obligation to have a dense network of public outlets,
which ensures access to the Universal Service (1), also
results in high ﬁxed costs (e.g. real estate and staff).
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 2014 (6% in 2013, 7% in 2011 and 2012).
5.1.4.2.2 The business model of Parcels
The Parcels division is conscious of the fact 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.
(1) 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 with more than 10,000 inhabitants must have at least one public outlet
for each section of 20,000 inhabitants; it must be possible to perform essential mail transactions at these outlets.
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5.1.4.2.3 The business model of Subsidiaries
The business models of the Services-Mail-Parcels business
unit are speciﬁc in some ways:
f the unaddressed admail business model (Mediapost) is
similar to that of addressed letters, with revenue highly
dependent upon volumes, and payroll representing a
high proportion of costs;
f the press home delivery model is primarily dependent
on delivery and on an ability to maximise volumes in a
given delivery area;
5.1.5
5
f the business model for cross-border activities (Asendia)
is characterised by an elevated share of variable costs
(i.e. purchase of transport and delivery services).
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 prices and terms for the
transportation and delivery of postal items with the other
postal services;
f the logistics business model relies on ﬂow pooling and
rotation speed. The goal is therefore to ﬁll up production
capacity with inventory that has high renewal rates.
Customers
5.1.5.1 Mail customers
The top 100 customers accounted for 34% of revenue in
2014.
Mail’s customers include all private individuals and
economic players.
Addressed letter volumes break down accordingly between
companies and private individuals, senders and addressees:
f 90.5% of volumes shipped are issued by professionals
or administrations;
f 71.7% of volumes delivered are distributed to private
individuals;
f mail from one private individual to another represents
only 3% of total volume. Accordingly, 97% of the
13 billion addressed messages processed in 2014 are
linked to economic exchanges (i.e. involving at least one
administration or company).
Private individuals pay attention to how easy it is to send
and receive mail and parcels in any form, with increased
interactions to respond to their information requests more
efﬁciently: services accessible 24/7, customised services,
online availability, simplified drop-off, diverse and more
ﬂexible reception options, reinforced security features, etc.
For professionals, beyond its services of shipping and
delivery, La Poste is positioned as a growth driver for the
Company: a global provider of document management, mail
and direct marketing services. It offers companies a range
of business solutions helping their development.
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, tax notices), the distance sales
sector (catalogues) and the telecommunications sector
(mobile phone bills) are amongst the largest customers of
the parent company.
5.1.5.2 Parcels customers
The Parcels division is a central component of exchange
between a company’s product and a private individual’s
order. Its customer portfolio is divided up between distance
sales (traditional distance selling or e-retailers) and private
individuals and small businesses, to which it offers a range
centred on both Colissimo and So Colissimo products (89%
of volumes handled in 2014) and Coliéco piloté.
Corporate customers
The Parcel s d ivision has established high-quality
relationships with more than 50,000 corporate customers
by offering products and services suited to customers that
send products. The Parcels division’s “corporate” business
accounted for 70% of its revenue and 83% of its volumes
in 2014.
The Parcels division’s customer base may be broken down
into three categories:
f distance sellers, whether traditional players having
added online sales, e-retailers created on the Web
and developing their business without any other sales
channel (pure players) or traditional companies who are
expanding their sales online (click & mortar) companies.
The Parcels division is the long-standing supplier of
so-called “traditional” distance sales companies, and it
has become a very important supplier to e-commerce
companies over the past few years;
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5
Overview of business activities
Services-Mail-Parcels
f logistics operators: they buy transport services on behalf
of a number of shippers selling various products under
private labels;
f other parcel shippers (e.g. subscription books,
5.1.5.3 Internal customers of the Group
Inter-business unit relationships
promotional items).
Customer size is a major segmentation criterion:
200 customers account for around 60 % of the Parcel s
division’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.
Service standards have moved closer to those offered by
express. In addition to the value added services already
offered, in 2014, the Parcels division launched Coliview, a
tracking tool for corporate parcel shipments, which provides
access to detailed information for each parcel, identiﬁes an
anomaly quickly and manages claims directly online.
Individual customers and small businesses
The Parcels division offers products and services adapted
to the needs of private individuals and small businesses, in
large part under the Universal Parcel Service assigned to
La Poste. Cash sales in post ofﬁces or on the Internet are
supplemented by numerous value added services created
in response to new lifestyles and consumer habits driven by
the growing importance of the Internet and e-commerce:
online postage for parcels, parcel tracking, notiﬁcation of
parcel availability via email and/or text messaging, etc. All
of these offers respond to the trend of growing customer
expectations in terms of delivery standards, tracking and
adapting to changing living and work rhythms.
The Parcels division estimates that the volumes shipped
by this clientele are made up of around 70% for private
individuals and 30% for small businesses (artisans,
liberal professions, etc.), and that shipments from private
individuals meet the following three requirements:
f trading between private individuals, which is made
possible thanks to merchant platforms (40% of this
segment);
f 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);
f shipments between private individuals for other reasons
(e.g. gifts, and forgotten items, etc.), which account for
30% of this segment.
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The Services-Mail-Parcels business unit is very engaged
with the Group’s other business units.
Due to its 17,000 public outlets, the Network is the general
public’s major entry point to the Group. As the collection
and delivery supplier for private individuals and small
businesses (for registered mail or Colissimo for example),
it generated 18% of parent company Mail revenue and 26%
of Parcel revenue.
La Banque Postale is one of the Mail division’s 10 largest
customers, and a partner in the development of its Internet
offering.
Inter-business unit synergies
In parallel with its dedicated structure, the Parcels division
has historically been supported by Mail: the 1,296 Mail sales
persons generated 13% of Parcels’ revenue and provided
marketing support for 11% of its customers. The percentage
of parcels delivered by postmen accounted for 68% of the
Parcels division’s volume.
Bringing together Mail and Parcels in 2014 represents a
signiﬁcant strength for the Services-Mail-Parcels business
unit, thanks to synergies in products and services, networks
and information systems.
With regards to the range, La Poste announced the launch
of a simplified range between mail products and parcel
products starting from 1 January 2015. This new range,
structured around a 3 cm thickness threshold has been
created, allowing ﬂat products to be shipped (CDs, DVDs,
small books, etc.) at correspondence rates (Priority mail,
Green Mail, Écopli) according to the delivery options that
the customer desires. Beyond 3 cm, the Colissimo offering
is suggested.
Overview of business activities
Services-Mail-Parcels
5.1.6
5
Strategy and outlook
The “La Poste 2020: Conquering the Future” strategic plan,
introduced in 2014, was accompanied by a new governance
structure. It is within this context that the Services-MailParcels business unit was created.
The vision and strategic project were enhanced and
renewed by taking into consideration market developments
and the positioning of the Services-Mail-Parcels business
unit. The digitisation of trade is affecting mail volumes, mail
being the primary market for the Services-Mail-Parcels
business unit, which still faces some signiﬁcant challenges.
However, it is also leading to the growth of e-commerce
and to profound transformations in freight logistics. This
development represents a highly promising underlying
trend: it is changing market standards and making home
delivery an indispensable service. It is also leading to larger
changes in commerce (ﬁne-tuned inventory management,
collaboration between local stores, etc.), which is
encouraging the development of local logistics services.
The core of the new strategy is repositioning the postman
as a service provider: Services-Mail-Parcels intends to
develop new home services by making its network of
postmen the largest connected network for local services,
while continuing its Universal Postal Service mission with
a high standard of quality. La Poste will also become the
privileged partner in e-commerce and a major player
in urban logistics. Lastly, it is aiming to enhance “media
mail” by integrating advertising mail into a multimedia
offering, thus renewing its positioning in order to remain
the premium medium for customer relations, which is now
also international and multichannel.
This business unit therefore intends to:
f remain a key operator in its original ﬁeld of operations,
to which it is legitimate, and take advantage of
growth in segments: adjust to changes in companies’
communications and relational strategies, which are
now based on multichannel (letterboxes, Internet and
mobile) and multi-media (paper, digital, and hybrid)
offerings, in order to achieve an ongoing relationship
between the brand and the customer. These strategies
combine promotional marketing, relational marketing
and contractual management through a combination
of formats. To do this, the range is constantly being
supplemented by introducing new commercial and
innovation drivers. Marketing, communication and
business communication activities will therefore
continue to generate the major portion of its revenue;
f remain the preferred parcel delivery service of the
French people through its reliability, its choice of
delivery solutions and its ability to adapt to their needs.
The So Colissimo brand should progressively become
the new benchmark for secure delivery of distance
purchases. Offering comprehensive products and
services to recipients is therefore a major challenge for
the Parcels division, which has deﬁned a certain 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;
f 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
digitisation 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
providing growth opportunities for La Poste. To
capture this growth, processes and organisations,
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 delivery periods (from stores to approach instantaneousness, etc.), simpliﬁed solutions
for returning packages from home, etc.
(2) Urban logistics: solutions for shipping goods to merchants under optimal conditions, (incoming, outgoing and intra-city).
(3) Recycling products (ofﬁce paper, cartridges, etc.), repairs, etc.
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GeoPost
− the new services provided by the postman, including
local services, which are closely linked to the
challenges posed by an ageing population and the
financial equilibrium of social security schemes:
La Poste is seeking to leverage the trust the French
population has in its postmen (1), and 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. La Poste
intends to leverage this potential notably through the
ability of postmen to intervene on a day-to-day basis, so
5.2
5.2.1
that its services meet the requirements for responsiveness,
reliability, ﬂuidity, competitiveness, and enable it to build
sustainable leadership positions for activities under
development.
The Services-Mail-Parcels business unit is conducting this
policy while continually monitoring its balanced progress
in each of its three strategic focus areas: commercial
development, quality of life at work and financial
performance.
For the business unit, its staff development policy in order
to strengthen collective performance and team satisfaction
is an essential condition for achieving its strategic goals.
GeoPost
General points and key ﬁgures
FINANCIAL DATA
2014/2013 change
2014
2013
pro forma
amount
%
Revenue
4,921
4,342
+579
+13.3%
External revenue
(€ million)
4,847
4,271
+576
+13.5%
Intercompany revenue
74
72
+2
+3.4%
(A)
284
316
-32
-10.0%
OPERATING PROFIT
(a) Operating proﬁt/(loss) after share of net proﬁt from companies under joint control (application of IFRS 10 and 11 as at 1 January 2014; a pro forma
invoice was created as at 1 January 2013).
OPERATIONAL DATA
2014
2013
% revenue outside France
77%
75%
+1.7pt
% revenue in BtoC
29%
26%
+3.1pts
864
781
+10.6%
25,121
23,659
+6.2%
19,772
18,383
+7.6%
Number of parcels (in millions of units)
Number of employees (in FTE)
Of which employees outside France
2014/2013 change
(1) TNS Sofres survey from October 2012: 92% of French people indicate that they trust their postman, making postmen the second most preferred ﬁgure
in the day-to-day life of the French (after bakers, but before ﬁremen).
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5
Overview of business activities
GeoPost
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. Today, the group
is a leading player in this market via its subsidiary GeoPost.
Created in 1999, GeoPost’s core business is the
transportation and delivery of parcels weighing less than
30 kg, primarily in the ground deferred express market
(next-day for domestic and next-day or two-day for
international).
GeoPost has experienced continuous growth since its
creation, particularly through acquisitions. The company
has a very strong presence in Europe, and it is currently
expanding its business activities into the Asian, Middle
Eastern and African markets while strengthening and
consolidating its positions in Europe.
5.2.2
GeoPost has a hybrid model: historically positioned in
the business to business (BtoB) market, GeoPost is also
experiencing rapid growth in delivery to private individuals
(BtoC) , with momentum from e-commerce. BtoC now
makes up a signiﬁcant portion of the business (nearly 30%
of volumes in 2014).
Delivery is ensured worldwide thanks to its subsidiaries and
strategic partnerships with players in the local markets.
GeoPost is active in more than 25 countries across the
world, and 77% of revenue is made outside France.
Structure and networks
5.2.2.1 Structure
In France
GeoPost operates in the French market via three subsidiaries with complementary business activities:
Chronopost International
Chronopost is a major player in the express delivery of
parcels weighing less than 30 kg to businesses (BtoB) as
well as private individuals (BtoC). Focused on premium
express, Chronopost offers coverage throughout all of
metropolitan France for next-day deliveries at home or at
drop-off points, while serving the major economic regions
across the globe. Chronopost delivers to more than 230
countries via premium and deferred express. The company
integrates express customs clearance procedure services
thanks to its status as customs agent and Authorised
Economic Operator (OEA).
Revenue
(16% of which international)
€782 M
Number of parcels transported
29% of which BtoC
97 million parcels
Number of employees (in FTE)
Number of operational sites
3,183
80, including 7 hubs (1)
(including 1 hub dedicated to international parcels)
(1) A hub is a high-volume parcel sorting platform. It serves as a “network head” which then feeds secondary, regional or domestic lines.
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5
Overview of business activities
GeoPost
Exapaq
Acquired by GeoPost in 2006, Exapaq is specialised in the
express delivery of parcels weighing less than 30 kg, mainly
in BtoB (businesses and stores). Its services are centred
around deferred express in France and abroad: Exapaq
delivers to more than 30 destinations in Europe and 200
destinations around the world in two to eight days.
Revenue
€360 M
Number of parcels transported
54 million parcels
Number of employees (in FTE)
1,770
Number of operational sites
6 hubs in France
56 branches
Pickup
Pickup is Le Groupe La Poste’s pick-up and drop-off
network. The network was created in 2000, and was
acquired by GeoPost in 2009. Pickup is now France’s leading
network with 7,000 pick-up and drop-off points at the end
of 2014, representing the largest network in France and the
densest network in the Greater Paris region. This density
supports the substantial increase in the number of parcels
handled each day while preserving an optimal quality of
service.
In France, Pickup is present in various formats, retail
outlets, Navette Pickup, Pickup Station and Pickup Store.
These additional formats enable a constant adaptation to
changes in customers’ habits and modes of consumption
(accessibility, service offerings, longer hours of operation).
Across the globe
In Europe (excluding France), GeoPost is present in several
ways:
f wholly-owned, via subsidiaries: in Germany, the United
Kingdom, Belgium, Spain, Portugal, Luxembourg, the
Netherlands, Switzerland, Poland, Hungary, the Baltic
Countries, the Czech Republic, Slovakia, Romania,
Croatia and Slovenia. These subsidiaries are usually
signiﬁcant players in their respective markets;
f via commercial partnerships with leading operators,
such as Bartolini in Italy (one of the top express delivery
specialists in the country) or Posten in Sweden (the
national postal operator);
f via equity and industrial partnerships: in the Turkish
market via its 25% interest in Yurtiçi Kargo, with
which it is also developing (under the international
DPD brand through a 50-50 joint venture) in the
Ukraine, Kazakhstan, Belarus and Russia, where it has
substantial operations.
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Outside Europe, GeoPost has expanded its operations
on fast-growing markets through partnerships, via a
continuous continental block approach:
f in Asia, in the People’s Republic of China, in Japan and
in India (where GeoPost acquired 42.53% of the share
capital of DTDC in 2013);
f in Africa: Niger, Morocco, Côte d’Ivoire, Burkina Faso,
and South Africa (with DPD Laser, 75% owned);
f on the American continent, in the United States via IBC
(takeover in 2012).
Lastly, where international import and export ﬂows are
concerned, GeoPost is positioned in the freight forwarding
market via its Tigers subsidiary, an international freight
forwarder that operates in Asia (China), in the United
States, and Europe. 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 commercial and operational synergies, and to offer
an alternative to the service provided by integrators.
Overview of business activities
GeoPost
5.2.2.2 Network
Operational network
The GeoPost network is composed of:
f the domestic networks owned by each entity;
f the DPD pan-European road network, an international
shipping and delivery network. It is the most extensive
road network in Europe, and covers the most important
business regions worldwide;
f an air express network for Chronopost, primarily
5
In total, the GeoPost network has 815 warehouses and
28 hubs, which are connected via 500 daily international road
links between 35 European countries by 33,000 vehicles.
Having a decentralised structure at the local level ensures
the efﬁciency of the network, which is constantly adapting
to national and international volumes and which allows the
network to adapt actions and resources to local commercial
priorities. 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.
Pick-up and drop-off (PUDO) network
operated under an agreement with an integrator (a
global shipping company controlling the whole shipping
chain);
GeoPost has an extensive network of more than 16,000 pickup and drop-off points in France and in Europe:
f the inter-continental GeoPost network, which relies
f in France, more than 7,000 pick-up and drop-off points
on the Air France-KLM 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, and on the transportation network and logistics
services of Lenton (34.7%-held (1)). These alliances are
supplemented by partnerships and agreements with
regional operators across the world.
in the Pickup network criss-cross the country under the
commercial brands of Pickup, Chrono Relais and Ici
Relais;
5.2.3
f in Europe, GeoPost has more than 8,000 pick-up and
drop-off points, 5,000 of which are in Germany, 600 in
Switzerland, 450 in Portugal, 1,500 in Benelux and nearly
1,000 in Spain, etc. These networks are operated under
different brands, depending on the country: Pickup in
Benelux, Pickup and DPD Parcel Shops in Germany,
SEUR-Punto Pack Network and SEUR Own Net in Spain,
Pick Me! in Portugal, etc.
Markets
5.2.3.1 Market segmentation and
GeoPost’s positioning
− 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).
Market segmentation
GeoPost operates in the deferred and express courier
segments, traditionally listed under the generic
“express” category;
The express parcel market is traditionally segmented
according to several criteria:
f 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),
f the nature of the sender and recipient, which breaks
down the market according to the type of parcel ﬂow:
− from professional to professional (BtoB),
− from professional to private individual (BtoC),
− from private individuals to private individuals (CtoC),
− from private individuals to professionals (CtoB).
GeoPost covers all of the customers’ needs and all types
of ﬂows thanks to its hybrid BtoB and BtoC model;
(1) Lenton is an international logistics service provider which relies on a network of global air freight operators including Cathay Paciﬁc Airways and other
airline companies. In September 2014, GeoPost entered into an equity partnership with Japan Post. They now hold 34.7% and 14.9% of Lenton, respectively.
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Overview of business activities
GeoPost
f geographic criteria with:
− domestic markets (intra-country),
− an international market, sub-divided between
shipments within the European Union and shipments
outside the European Union.
GeoPost is specialised in the domestic and intra-Europe
market, and is expanding globally.
Today, GeoPost is the second largest European operator in
the express parcel market after Deutsche Post DHL, with
market share estimated at 10.7% in 2013 (1). It is the market
leader with 12% market share in the domestic European
ground market, ahead of Deutsche Post DHL.
by reducing unnecessary trips. Launched in 2010 by DPD
UK in the United Kingdom, Predict is currently available
in 18 European countries. It concerns not only domestic
shipments, but also international shipments in most
countries (and cross-border shipments, notably between
Germany, Benelux and Slovakia). It is being expanded and
deployed by all of the subsidiaries in Europe.
In addition, “Follow My Parcel” was launched, the ﬁrst
real-time parcel tracking service. Available in the United
Kingdom since 2013, it is now also available in Germany.
Depending on the market, the BtoC offerings rely on local
networks, thereby offering private individuals and small
businesses several services as follows:
f several value added home delivery solutions: late
GeoPost’s positioning
deliveries, Saturday delivery in certain countries
(launched in Germany in January 2013) and even Sunday
delivery (launched in the UK in May 2014);
Offerings
GeoPost’s express offering comes in two forms:
f deferred express, ensuring delivery prior to 6 pm the
next day, but without any delivery deadline guarantee;
f premium express, guaranteeing next-day delivery,
typically before 1 pm (date and time speciﬁed — refund
if not delivered on time).
This offer is available in domestic, European and
intercontinental delivery.
GeoPost also offers a wide range of customised solutions
and value added services. These customised offers are
adapted locally to meet customers’ needs as closely as
possible (parcel tracking, cash on delivery, online proof of
delivery, insurance, collection requests, etc.). Available in
domestic delivery, some of its products and services are
also offered for import/export ﬂows in order to facilitate
international e-commerce trade.
Additionally, GeoPost has developed an innovative and
strongly differentiating product, called “Predict”. This
service warns customers of deliveries within a one-hour
window, while the addressee has the option to reschedule
the delivery time frame up to six days by text message
or email, with a delivery time frame of one to ﬁve hours
(depending on the country). Communication with addressees
signiﬁcantly reduces the number of unsuccessful delivery
attempts, and results in a substantial increase in customer
satisfaction. It saves time and also reduces CO2 emissions
f alternative solutions to home delivery, primarily from the
European Pickup network:
− a parcel pick-up and drop-off network: in local stores
(tobacco stores, newspaper/magazine stores, book
stores/stationery shops, etc.) or in larger stores
(large general retailers, store networks, franchise
networks, etc.), the outlets can handle between 10 and
40 parcels/day. Pickup offers a comprehensive range
of pick-up and drop-off services in the French market,
− Pickup Station (automated lockers (2 )): installed
in high-trafﬁc areas, mainly in train stations and
sometimes in post ofﬁces, the automated lockers
are an integral part of the Pickup network. They can
handle between 40 to 100 parcels/day. The roll out
began in 2014 with 100 lockers installed in France,
− Pickup Store: wholly-owned boutique shops located in
strategic, very high-trafﬁc areas, such as a large train
station (handling capacity: more than 100 parcels/day).
Three Pickup Stores have been operational since 2014
in the Ermont-Eaubonne, Evry-Courcouronnes and
Saint-Lazare train stations,
− navette Pickup: ﬁrst shipping service between private
individuals from one pick-up and drop-off location
to another, priced according to distance, which was
launched in 2014;
f management of return-to-sender items and delivery
slips.
(1) Internal sources.
(2) In January 2014, GeoPost signed an agreement with Neopost ID, a subsidiary of NeoPost, regarding the creation and operation of automated and secure
locker networks installed in conveniently-located areas to offer a ﬂexible and secure solution to customers receiving parcels.
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Overview of business activities
GeoPost
5
In summary, GeoPost’s product range includes:
BTOB OFFERING
Domestic
Deferred
Delivery
DPD CLASSIC, Exapaq, SEUR 24
Next-day delivery
International
DPD CLASSIC
From next-day to four-day delivery in Europe
Seven-day international delivery
f
f
Chrono Classic
SEUR Classic
Express Delivery
DPD Express: DPD 8:30 am, DPD 10 am,
DPD 12 pm, DPD 1 pm and DPD 6 pm
Guaranteed next-day delivery before 8:30 am,
10 am, 12 pm, 1 pm or 6 pm
France: Chrono 8 am, Chrono 9 am,
Chrono 10 am, Chrono 1 pm, Chrono 6 pm
Guaranteed next-day delivery before 8 am,
9 am, 10 am, 1 pm or 6 pm
Spain: SEUR 8:30 am, SEUR 10 am,
SEUR 1:30 pm
Guaranteed same-day or next-day delivery
DPD Express
Next-day delivery in Europe
Express delivery available in over 220 countries worldwide
DPD Guarantee
Guaranteed delivery to European destinations
Chrono Premium Europe
Next-day delivery to major European cities before 10:30 am
Chrono Express Europe and worldwide
Next-day delivery to major European cities and two-day or three-day
delivery to major destinations worldwide
SEUR Air Courrier
Guaranteed delivery in main destinations worldwide
One to three days depending on the destination
SEUR NetExpress
Delivery to major European destinations. One to ﬁve days depending
on the destination
BTOC OFFERING
Domestic
International
Deferred
Delivery
Pickup Services
Delivery to pick-up and drop-off points
Delivery to pick-up and drop-off points
Next-day to four-day delivery available cross-border,
notably between Belgium, the Netherlands and Luxembourg
Express Delivery
Pickup Services
Business units using the Pickup network for
express delivery
Value added
service
f
France: Chrono Relais
Guaranteed next-day delivery from 1 pm
onwards at one of the 6,150 Chrono pick-up
and drop-off points
f
Portugal: Chronopost – Pick Me!
Next-day delivery before 1 pm at one of the
440 Pick Me! pick-up points
(including Madeira and Azores)
Predict
Rescheduling a delivery within up to six days via
text message or email, with a delivery window
of one to ﬁve hours depending on the business
unit. Availability of parcel in pick-up and dropoff points is offered in certain countries
Predict
Offer available cross-border in the following countries: Germany,
Belgium, Czech Republic, Estonia, Ireland, Hungary, Latvia,
Lithuania, Luxembourg, the Netherlands, Poland, Portugal, Slovakia,
Slovenia, Spain, Switzerland, United Kingdom
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Overview of business activities
GeoPost
f fashion and textiles;
The characteristics of “toC” products are now relatively
similar to those of “toB” products. Information tracking is
pretty much complete, and the after-sales service highly
sophisticated. 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:
f pharmaceuticals, health, biology and cosmetics;
f a single parcel per delivery;
f automotive, steel and tires;
f greater or less success in reaching a private individual
Customers
GeoPost’s customers mainly operate in the following
sectors:
f e-commerce/distance-selling;
f high technology and telecommunications;
f reverse logistics/recycling;
at home, as addressees are often absent;
f publishing;
f the need to set up solutions to arrange other delivery
f music and entertainment;
attempts and leave delivery slips.
f sporting goods.
The subsidiaries develop a service offering tailored to the
speciﬁc requirements of their customers.
GeoPost has a combined network capable of meeting “toB”
as well as “toC” needs.
A very geographically concentrated market
with multi-form competition
5.2.3.2 Market dynamics
The European market is estimated at €42.3 billion (1) for all
parcel categories combined, and at €32.6 billion excluding
postal parcels. It has increased by 3.5% in value terms
compared with 2012.
The importance of e-commerce
A largely BtoB market, but driven by growth in BtoC
BtoB continues to account for the major share with 68%
compared to BtoC in the European market, with “toB”
representing €28.7 billion versus €13.6 billion for “toC”.
The market remains highly concentrated: Germany, the
United Kingdom and France account for over 54% of the
European express parcel market. Including Spain and Italy,
these ﬁve countries account for 70% of the 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:
f 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 ;
f European players, including GeoPost, that are mainly
However, the BtoC share, supported by growth in
e-commerce volumes, is increasing both at the domestic
and international level (+7.8% vs +1.6% for BtoB), a much
higher growth rate from which the Group beneﬁts due to its
combined network.
Converging BtoC/BtoB market standards
E-commerce has radically changed the market by
introducing the demand for faster shipping and security
to the private individuals market (BtoC), which before was
reserved for companies (BtoB), and the operators who have
been historically positioned in the BtoB market are growing
their BtoC trafﬁc.
(1) Internal sources produced in 2014 for 2013.
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road operators;
f local players, including some national postal operators
(operating in domestic BtoC markets), and certain
regional transport SMEs that offer some BtoB express
services.
The integrators share the global air express market, but
excluding air and excluding the United States where two
players share 95% of the market, the game remains very
open between all players.
Overview of business activities
GeoPost
T h e E u ro p e a n m a r ke t i s u n d e rg o i n g a p h a s e o f
consolidation: the three largest postal operators (in
Germany via DHL Express, 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. Consolidation can thus be expected to
continue.
5
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:
f an increase in the capacity of parcel operators who have
Domestic demand is continuing to switch from air
transport to road transport and from express
to deferred delivery
The crisis has led to greater price sensitivity. As a result,
corporate customers have changed their orders from
premium express (air) to deferred express (road), 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.
5.2.4
followed the market’s capacity;
f customers’ high level of negotiation power due to the
concentration of the e-commerce market around a
handful of operators;
f costs relating to delivering to private individuals, which
are higher than for companies.
The continued roll-out and expansion of the offering and
the optimisation of capital expenditures and means of
production enable GeoPost to provide a commercial and
industrial solution, and to continue expanding business
and results.
Outlook and strategy
Since its creation, GeoPost has expanded its European
network through acquisitions and through organic growth
by relying on the efﬁciency of its network and the quality
of its services. GeoPost plans on continuing its strategy to
develop a specialised express parcel network in BtoB and
BtoC, which provides its customers around the world with
transport solutions with deﬁned deadlines and logistics
services with comprehensive tracking of the shipped
merchandise.
5.2.4.1 Pursuing external growth
and in the United States and also offers delivery solutions
to Russia, China, Brazil and the Middle East. Thanks to
this acquisition, GeoPost and its subsidiaries now have
access to a very dynamic market with strong potential;
f the acquisition in October 2014 of 100% of the share
capital of Siodemka, one of the leaders in the domestic
parcels market in Poland (€95 million in revenue in
2014, 34 million parcels delivered). This acquisition is
enabling DPD Polska, a subsidiary of GeoPost in Poland,
to signiﬁcantly strengthen its position in the express
market in Poland and become one of the top two leaders
in the domestic market;
f pursuing the acquisition of SEUR network franchises
In 2014, GeoPost continued its external growth policy with:
f the takeover of the British logistics services company,
Worldnet Direct in April 2014 (63.5% of share capital,
compared with 20% before). With €69.8 million in
revenue in 2014, this company offers an international airbased home-delivery solution for BtoC parcels, specially
designed to meet the speciﬁc needs of the e-commerce
market. Worldnet Direct operates in the United Kingdom
in Spain and the acquisition of one of the two SEUR
franchises in Portugal in November 2014. GeoPost now
owns 65% of the SEUR network;
T h e E u ro p e a n m a r ke t i s u n d e rg o i n g a p h a s e o f
consolidation: 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.
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43
5
Overview of business activities
GeoPost
5.2.4.2 Pursuing operational capital
expenditure
The efﬁciency and quality of GeoPost’s solutions
guarantee the success of its customers. GeoPost makes
substantial targeted capital expenditures, in order to drive
growth, deliver a high-quality service and optimise its
regional coverage. Over the past few years, these capital
expenditures have led to the opening and extension of hubs
in France and Europe, to the equipment of delivery staff with
portable scanners, etc.
GeoPost’s strategy is to pursue these investments in
infrastructure, technology and personnel. For example:
f in the United Kingdom, GeoPost announced in 2013 the
construction of the largest European hub, which 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. Moreover,
in April 2014, DPD UK announced an ambitious
development plan with 15 new warehouses, including
three “super depots” (1) to meet the very strong growth of
the subsidiary in the United Kingdom, driven in particular
by the success of Predict offerings, which have made
DPD UK a benchmark player in the region;
f 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;
f in France, in 2014, Exapaq invested in a new hub in the
Tours region, which will be operational in 2015;
f in Germany, DPD invests more than €60 million (in
Hamm and in Dinkelsbühl) to create parcel sorting and
distribution centres to further strengthen quality of
service and customer satisfaction.
5.2.4.3 Capture the strong growth in BtoC
by developing a pan-European network
of pick-up and drop-off points and
alternative delivery solutions
GeoPost aims at building the largest network in Europe with
a uniﬁed and coherent structure so as to offer European
shippers a consistent level of service and better serve
e-retailers and end-customers. The goal is to continue
developing the Pickup model. In 2014, the Pickup network
of pick-up and drop-off points – trusted by major players
in e-commerce – experienced sharp growth in France with
+34% of parcel volume compared with 2013, and more than
200,000 parcels per day in the run up to Christmas. By the
end of 2014, Pickup had more than 16,000 equipped pickup and drop-off points in 10 European countries, including
Germany, Benelux, Portugal and Switzerland. 6,000 new
openings are planned in 2015 in these countries as well as
in Spain and the United Kingdom.
The Pickup network was reinforced in 2014 with two new
layouts:
f the “Pickup Station” automated lockers, 100 units of
which were installed in SNCF train stations located in
the Greater Paris region. By late 2016, 1,000 lockers will
be available throughout the country;
f la navette Pickup, which is currently available in
4,100 pick-up and drop-off points, will be gradually rolled
out to the 7,000 pick-up and drop-off points in the French
network, then to adjacent countries.
The hybrid evolution (toB and toC) of the GeoPost network
will enable it to capture a share of the sharp growth in
deliveries to private individuals, and to reinforce its position
via new services and innovative solutions.
(1) Warehouses with a very high capacity of 7,000 parcels/hour, equipped with state-of-the-art sorting equipment.
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Overview of business activities
GeoPost
5
5.2.4.4 Developing GeoPost’s positions
internationally
5.2.4.5 Driving product innovations
and customer satisfaction
GeoPost’s broader international strategy consists of
replicating the European model in other major regions of
the world while aiming to interconnect these regions with
the European continent. Growing GeoPost’s presence in
dynamic markets will occur by making selective acquisitions
and partnerships:
GeoPost is focusing on enhancing the customer experience
and increasing its commercial impact through reliable
and personalised services, a competitive approach and
individualised customer relationship management. In
this way, recent products, such as Predict or “La Navette
Pickup” illustrate GeoPost’s best practices, which seek to
simplify customers’ lives and offer them more ﬂexibility and
speed.
f developing the network in Eastern Europe and Asia:
GeoPost’s current road network stretches from France
to Russia, passing through Belarus, Ukraine, Kazakhstan
and Turkey. These countries are all interconnected and
operated under the DPD brand (except for Turkey, where
the network operates under the Yurtiçi Kargo brand).
Connecting the Asian network to the European network
by road, which is under way, is now a priority for GeoPost,
particularly so that it can take advantage of the sharp
growth of the toC market;
f developing the network in South-East Asia, and more
speciﬁcally in India (where GeoPost acquired 42.53%
of the share capital of DTDC in 2013), in Africa, and
especially 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);
GeoPost’s success is based on a constant drive for
higher quality. GeoPost offers its customers across the
world products adapted to their needs and services that
correlate to their expectations: reliability (certainty that
the merchandise reaches the destination on time and
safely), efﬁciency, at the best value for the money, simplicity
(handling, access to services).
To conclude, GeoPost, which specialises in the road delivery
of express parcels, is building three competitive beneﬁts
compared to the competition:
f the hybrid (BtoB and BtoC) nature of its worldwide
networks;
f the extent, consistency and continuity of its regional
networks;
f GeoPost is also relying on Tigers, Sodexi and Lenton to
f the advanced industrialisation of its operations, and
grow intercontinental ﬂows between its different regional
networks (Europe, Eurasia, South-East Asia, Africa)
and will develop its freight forwarding business via its
specialised subsidiary, Tigers.
the incorporation of new technologies in operating
processes.
This strategy should enable GeoPost to grow faster than the
market and thus play a role in the market’s consolidation.
GeoPost’s economic performance is based on growing
volumes and developing international ﬂows (intraEuropean, inter-regional and inter-continental). Outside
Europe, development is based on the same business model
as the European model.
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45
5
Overview of business activities
La Banque Postale
5.3
La Banque Postale
2014/2013 change
2014
2013
pro forma
amount
%
Net Banking Income
5,673
5,574
+100
+1.8%
External Net Banking Income
5,660
5,557
+104
+1.9%
(€ million)
Intercompany Net Banking Income
OPERATING PROFIT
5.3.1
13
17
-4
-23.3%
842
726
+116
+16.0%
Overview of La Banque Postale
5.3.1.1 History
La Poste become
legally autonomous
LA BANQUE POSTALE
LA BANQUE POSTALE
ASSURANCES IARD
LA BANQUE POSTALE
COLLECTIVITÉS LOCALES (2013)
Eﬁposte becomes
La Banque Postale
General insurance
(government mandate)
Loans to local
authorities
Acquisition
of Soﬁap
2009
2012
2014
31 Dec.
1991
2005
1817
2000
2007
2011
2013
Creation of the ﬁrst
postal service
mandate, called
“Reconnaissance”
Creation of Eﬁposte
(management of sight deposits
collected by La Poste)
EFIPOSTE
Consumer loans
(government mandate)
Business loans
(government mandate)
Acquisition
of BPE
LA BANQUE POSTALE
FINANCEMENT
LA BANQUE POSTALE
CRÉDIT ENTREPRISES
Traditionally active in deposit taking and property
lending, La Poste Financial Services underpinned
Le Groupe La Poste’s development, the early phases
marking the transition from the French Post Office and
Telecommunications company into two independent
operators: France Télécom and 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,
but in accordance with the Act of 1990 on La Poste’s role
in the French economy. 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
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balance sheet of the Home Savings section of the Savings
Funds.
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 ensure the
ﬁnancial management of 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. Act
No. 2005-516 of 20 May 2005 regulating postal activities
governed the establishment by Le Groupe La Poste of a
subsidiary into which all the assets, rights and obligations
relating to La Poste’s Financial Services were 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. On 30 November
Overview of business activities
La Banque Postale
2005, CECEI authorised Efiposte to take over the rights
and obligations of La Poste’s Financial Services, in order
to become La Banque Postale. On 21 December 2005, the
European Commission recognised that the founding of
La Banque Postale would not jeopardise competition in the
banking sector.
La Banque Postale was therefore founded on 31 December
2005 via the legal transformation of Eﬁposte.
The law regulating postal business also gave 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. Under this law, La Banque
Postale is required to open a Livret A account for anyone
who requests it free of charge. It authorises payment
transactions on Livret A passbook savings accounts relating
to social security beneﬁts, public employee pensions and
withdrawals pertaining to duty and tax payments, water, gas
and electricity receipts and social housing rent as part of its
public service mission. Lastly, La Banque Postale is the only
bank where withdrawals and deposits on Livret A passbook
savings accounts are authorised starting at €1.50.
Since its founding, and in accordance with its approval,
La Banque Postale expanded its range to cover all forms of
home loans. 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. At this time, 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
authorisation 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 authorisation by the French Prudential
Oversight Authority to provide financing for corporates
(SMEs, micro-businesses, non-proﬁt organisations, social
housing operators, etc.).
La Banque Postale was authorised 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-
5
terms loans at ﬁxed or reviewable rates, and maturities of
up to 15 years since November 2012. La Banque Postale
therefore entered a new stage, and now offers all the
products and services of a retail bank.
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.
5.3.1.2 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:
f Retail Banking, its core business, which primarily
focuses on retail customers, and was extended to
included corporates in 2011, and local authorities in
2012;
f Insurance (life, contingency, property and health);
f Asset Management (asset management companies and
discretionary management services).
This organisational structure is speciﬁcally dependent on
the 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 42 subsidiaries and strategic equity investments,
and on the distribution capacity of La Poste Network.
At 31 December 2014, La Banque Postale had:
f 10.8 million active customers;
f 11.7 million deposit accounts;
f 10,217 advisors and customer managers;
f 699 real estate advisors, 824 wealth advisors and
84 wealth management advisors;
f 7.8 million bank cards and 7,353 self-service kiosks and
ATMs;
f €213 billion in total balance sheet assets.
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47
5
Overview of business activities
La Banque Postale
5.3.2
Structure
5.3.2.1 Capital structure
The structure of La Banque Postale reflects La Poste’s
Financial Services organisational structure and consists
of, in particular:
f La Banque Postale, parent company of the La Banque
Postale group (formerly Eﬁposte) to which the Financial
Services businesses were transferred. It is also the retail
bank’s core business; La Banque Postale directly holds
the most recent acquisitions or creations, such as BPE
or Soﬁap, for example;
f 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 a
large majority of the Insurance and Asset Management
subsidiaries.
5.3.2.2 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 was able to quickly move into new businesses on
the back of the expertise of major market players, which
enabled it to provide its customers with a broad and
innovative offering.
5.3.2.2.1 Insurance partnerships
This strategy was initiated by relying on the expertise of
CNP Assurances in life insurance, with Financial Services
distributing a range of life insurance contracts since 1989.
Moreover, La Banque Postale holds 20.15% (1) of CNP
Assurances.
(1) 18.14% via Sopassure and 2.01% call option.
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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. As part of this collaboration,
in September 2014, La Banque Postale signed new
commercial agreements with La Mutuelle Générale,
strengthening its strategic partnership. In anticipation
of rolling out complementary health insurance to all
employees, the two partners are currently working to offer
group health insurance. On 2 February 2015, Malakoff
Médéric, La Mutuelle Générale and La Banque Postale
announced that their new group health insurance offering
would be offered by La Banque Postale Assurance Santé,
of which the Malakoff-Médéric group holds 49% and La
Banque Postale 51%. Subject to approval by the relevant
authorities, the deﬁnitive agreements should be concluded
by the end of the ﬁrst quarter of 2015.
5.3.2.2.2 Loan partnerships
La Banque Postale Financement, 65%-held by La Banque
Postale via SF2 and 35%-held by Franﬁnance (a subsidiary
of Société Générale), is La Banque Postale’s subsidiary
dedicated to consumer credit. Loans are distributed though
the post ofﬁces, through remote communication channels
and through a dedicated call platform.
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. Eligible loans are then refinanced
by CAFFIL (Caisse Française de Financement Local), a
company in which La Banque Postale (5%) and Caisse des
Dépôts (20%) are also shareholders.
Overview of business activities
La Banque Postale
In May 2014, La Banque Postale became SNCF’s partner
after acquiring an equity investment in Soﬁap from Crédit
Immobilier de France and SNCF. Now 66%-held by La
Banque Postale and 34%-held by SNCF, Soﬁap manages
more than €1.6 billion in outstanding property loans with
more than 24,000 customers, mainly employed by SNCF. It
relies on a team of nearly 120 people spread out between
its registered ofﬁce and around 30 branches across France.
Since November 2014, Soﬁap has also offered governmentsponsored home loans to employees of Gaz de France.
5.3.2.2.3 Means of payment partnerships
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
processes all the transactions of La Banque Postal and
Société Générale with retailers as well as 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,
thus demonstrating its ability to manage multiple brands.
On 17 September 2013, BNP Paribas, La Banque Postale
and Société Générale announced the launch of Paylib, a
company offering 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.
Crédit Mutuel Arkéa joined the consortium in July 2014,
followed by Crédit Agricole in November 2014.
5.3.2.2.4 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 protocol,
it was decided in 2012 not to extend the agreement between
La Banque Postale and Oddo & Cie. On 27 June 2013, La
Banque Postale thus became a 100% shareholder of
La Banque Postale Gestion Privée.
5
In the area of asset management, two agreements
should be ﬁnalised during 2015. Following their exclusive
negotiations which began on 18 December 2014, on
18 February 2015, La Banque Postale, La Banque Postale
Asset Management and Aegon Asset Management signed
an asset management equity and industrial partnership
agreement.
The goal of this agreement is to develop and expand La
Banque Postale Asset Management’s (LBPAM) expertise to
enable it to develop and reinforce its expertise in the French
market and give it access to an international distribution
network. The transaction involves Aegon Asset Management
holding a 25% equity investment in the share capital of
LBPAM. This transaction should be completed before the
end of the second quarter of 2015, subject to approval by
the relevant authorities.
At the same time, in February 2015, La Banque Postale and
Malakoff Médéric announced the project to merge their
subsidiaries LBPAM and Fédéris Gestion d’Actifs in order to
develop an asset management centre to better serve their
customers with an expanded product range, notably SRI.
This transaction would result in Malakoff Médéric acquiring
a 5% equity investment in LBPAM’s share capital.
5.3.2.3 Relationship between La Banque
Postale and Le Groupe La Poste
Wholly-owned by La Poste, La Banque Postale is both a
customer (in particular of the Services-Mail-Parcels and
Network business units) and the Group’s supplier, acting
as its primary 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
performing back-office and middle-office operations, IT
support and the ﬁnancial products sales force.
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Overview of business activities
La Banque Postale
Counter services are carried out by the La Poste 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.
5.3.3
La Banque Postale business activities
La Banque Postale business activities are split into three
divisions: Retail Banking (including the customer segments
comprising private individuals, companies and local
authorities), Insurance and Asset Management.
5.3.3.1 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 or
BPE.
It markets products to retail customers in the area of
deposits, savings and loans (housing and consumer),
means of payment, insurance products, as well as speciﬁc
products and services for high net-worth customers. It also
includes the lending and deposit businesses for companies,
professionals, not-for-proﬁt organisations, and the local
public sector.
Retail banking also includes 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.
5.3.3.1.1 A unique model in the French landscape
La Banque Postale operates an original business model
in the French banking market. With close to 10.8 million
active customers and 423,000 legal entity customers
(companies and non-profit organisations) at the end of
2014, the development of La Banque Postale depends on
building and maintaining a long-term customer relationship
offering innovative solutions. It constitutes a bank model
that is close to its customers, transparent, attentive to
their needs, with a human dimension. In October 2014,
the quarterly barometer, Posternak/IFOP, which evaluates
the image of the global brand of banks with consumers,
ranked La Banque Postale third, underlining the strength
(1) The Voice of Customers benchmark – 2014 cycle.
50
Therefore, in addition to the 3,765 employees that La
Banque Postale directly employs and which are spread out
across the entire country, 13,738 employees are from the
ﬁnancial centres and placed under the responsibility of the
Chairman of La Banque Postale’s Management Board as
Executive Vice-President of La Poste in charge of ﬁnancial
services.
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of La Banque Postale’s position in the French population’s
daily lives and as a provider of financing to the real
economy. La Banque Postale has maintained its leading
position in prices and geographic proximity as well as the
top spot for its actions to support sustainable development.
In December 2014, La Banque Postale won first place
in the “French people, insurance and banking” survey
conducted by Argus de l’assurance and Opinion Way. The
study measured the reputation, brand image and appeal of
insurers and banks.
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 marginalised customers. In 2014, more
than half of the bank’s customers would recommend La
Banque Postale to friends and family (1).
In 2014, La Banque Postale launched the Cap Client 3.0
programme, which aims to totally rebuild its distribution
tool. The new tool will enable more customer interaction,
simplify advisors’ tasks and strengthen business efﬁciency.
The Cap Client 3.0 programme is fully in line with the
Group’s digital transformation and its 2020 development
plan.
A resolutely multichannel model (€ million)
538
ATM
transactions
810
Remote bank
contacts
6.1
Advisor
appointments
162
Transactions
at the counter
540
Visits to the
commercial website
Overview of business activities
La Banque Postale
La Banque Postale is building a close relationship with
its customers, particularly by means of an innovative
multichannel relationship that enables each customer
to decide how they will interact with La Banque Postale.
La Banque Postale therefore offers customers the option
to choose the method in which they would like to stay in
contact with the bank, wherever they are and whatever their
needs may be: Internet, phone, mail, post ofﬁce and/or via
mobile Internet.
This close relationship with customers is built on and
relies on the relationship with the post office, managed
by 10,217 advisors and customer managers to serve
customers. It is served by post offices transformed into
modern and welcoming customer-oriented service areas.
These new areas were rolled out to 1,799 sites as at the end
of 2014. La Banque Postale also relies on a network of over
7,353 ATMs spread across the country, which handled over
538 million transactions in 2014.
In 2014, La Banque Postale and La Poste Network
implemented a single commercial management structure,
which makes decision-making faster and closer to the
ﬁeld to improve customer relations and develop banking
activities. In order to support employees, banking training
is provided by the School of Banking and the Network (École
de la Banque et du Réseau) which was created in 2014.
5
La Banque Postale customers also 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 (2) 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.
An ever-changing model for increasingly connected
customers
With Paylib’s creation in September 2013, La Banque
Postale offers its customers the possibility to make
payments online from their computer, tablet or smartphone
with all participating merchants who have the payment
Paylib icon on their payment page.
Since 2014, La Banque Postale’s Contactless Mobile
Payment option is offered to customers who have a
Postal c hecking Account and who have an NFC mobile
device compatible with the service, obtained from one
of the partner operators. The service is presented as a
payment application which enables the user to pay for
local purchases in all points of sale that accept contactless
payments.
The financial centres also play an important role in this
multichannel relationship: 7,351 employees in the ﬁnancial
centres are dedicated to processing transactions and
customer relations, and they receive and handle nearly
16 million calls each year. 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.
In July 2014, La Banque Postale developed a twitter
application called “Le Service après Vine” with the We Are
Social agency, which enables users to attach small videos
of no more than six seconds long to tweets to illustrate
responses to customers’ most frequently asked questions.
A true success, this online service was seen more than
170,000 times in six months.
The website www.labanquepostale.fr provides customers
with an interactive relationship. With 45 million visits per
month on average in 2014, www.labanquepostale.fr is a
major channel for information, for data collection and
for contact with the bank. A new version of the site was
released online in June 2014, simplifying access to products
and services and improving its readability for private
individuals and for potential customers, in particular.
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 2014, 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, property and casualty
insurance, contingency and health.
Today, 46% of contacts between customers and their
bank are made thanks to digital technologies. The tablet
application, which has been available to La Banque Postale
customers since autumn 2014 to access their bank online,
illustrates this surge towards digital services.
5.3.3.1.2 Markets
Private individual customers
Accessibility and innovation are two major focus areas for
La Banque Postale, enabling it to be an inclusive bank and
to offer a basic range of products and services as well as
to meet the personalised needs of customers. La Banque
(1) €0.15 including tax per minute + potential surcharge depending on the operator.
(2) La Banque Postale chez soi (La Banque Postale at home) has been tested since 2010 and was rolled out nationally in 2012.
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La Banque Postale
Postale offers a range of services adapted to the needs of
both younger and older customers, from high net-worth to
vulnerable customers and also to families.
This process was completed by the end of 2014 with
676 automated cheque deposit machines, as well as more
than 3,844 scanners installed in post ofﬁces.
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 young people to ﬁnance their studies with a
special student loan offering, as well as through a personal
apprenticeship loan allowing them to finance all or part
of their professional training. In addition, since 2013,
La Banque Postale has offered health insurance for young
people during stays outside France. In 2014, 1.2 million
young people opened their primary bank accounts with
La Banque Postale.
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.
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 880,000 gross account openings in 2014, the
portfolio reached more than 6.4 million accounts.
In an environment marked by uncertain economic conditions
and low returns for savings products, demand deposits
reached €50.4 billion, or a 15% underlying market share
for households (source: Banque de France), 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
The bank card portfolio reached €7.86 million in late 2014.
The number of cards increased 3.3%, 43% of which for
high value-added cards (Visa Premier). Payment ﬂows per
card at retail shops and businesses increased, rising more
than 9% in 2014. Market share for La Banque Postale bank
cards for all CB bank cards grew to reach 12.79% (1) (versus
12.43% at the end of September 2013).
To improve service quality and reduce the time it takes
to process cheques deposited by customers, in 2011,
La Banque Postale launched a programme to equip post
ofﬁces with automated cheque deposit machines or cheque
scanners for prompt crediting to customer accounts.
The roll-out of these machines began in February 2011.
Savings products
Balance sheet savings products
In 2014, balance sheet savings products suffered from
unattractive interest rates (Livret A passbook savings
account at 1%). Outstandings from Livret A passbook
savings accounts and Sustainable Development savings
accounts (LDD) are down slightly after two years of strong
growth following the increased ceiling for these products.
According to the latest OPERBAC study (2), 26.7% of Livret
A passbook savings account holders are at La Banque
Postale.
With centralised Livret A passbook savings accounts,
Sustainable Development savings accounts and LEP savings
accounts balances of €78 billion, La Banque Postale
accounts for around 19.2% of the market share in these
three products (source: Banque de France). The homes
savings product range includes the Home Savings Plans
(PEL) and Home Savings Accounts (CEL). Outstandings for
these two products are slightly up in 2014, at €28.2 billion,
due to very attractive Home Savings Plans (PEL) rates.
In 2014, La Banque Postale developed a new solidarity
product with the launch of “solidarity interest services”,
where investors can transfer all or part of the interests
acquired in a tax-exempt savings account (Livret A passbook
savings account, LDD, LEP savings account) to a partner
association that is a member of the Initiative (3).
Financial savings products
In the ﬁnancial savings area, the UCITS outstandings came
to €12.9 billion, down €1.8 billion, penalised by shortterm interest rates and lukewarm performances from the
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 its strong growth.
(1) Data as at 31 September 2014.
(2) Permanent observatory of the bank, insurance and loans, 2014.
(3) Associations that are members of the Initiative are as follows: Adie, L’Armée du salut, ATD Quart Monde, La Banque Postale, Crésus, the French Red
Cross, Emmaüs France, Habitat et Humanisme, les Restos du Coeur, Secours catholique, le Secours populaire and UNCCAS.
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Overview of business activities
La Banque Postale
5
La Banque Postale’s life insurance outstandings beneﬁted
from positive momentum in the markets and from a solid
performance in discretionary management, with the launch
of new products. Market share in terms of assets at 8.2%
improved slightly to reach total assets of €123 billion as at
the end of 2014.
This offering was built in the spirit of Act No. 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.
In May 2014, La Banque Postale marketed its Stock savings
plans for SMEs offering via its subsidiary Tocqueville
Finance, whose aim is to help small, medium- and
intermediate businesses obtain ﬁnancing.
f responsible practices for providing customers with loans
Home loans
f support options (budget reviews) throughout the life of
2014 was marked by an increase in outstanding home loans
(+7.2% to €53.4 billion) despite poor economic conditions
(decrease in transactions, decline in the number of real
estate loans granted, speculative bubble in certain regions).
La Banque Postale’s market share for home loans grew
0.6 points compared with 2013 at 5.8% (1). The expertise
and professionalism of the property advisors specialised
in real estate have resulted over the year in a funding
agreement of more than 60,000 projects, including more
than 46,000 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. The centre proposes, via advisors
specialised in real estate, remote credit applications for
customers and prospective customers who so desire.
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 Plus 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 deposit.
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 obtained
approval from the CECEI in April 2009. As such, La Banque
Postale enhanced its range by launching its first range
of LBPF products starting in April 2010. For one year,
La Banque Postale offered a revolving credit facility as a
national test, and it was implemented deﬁnitively after the
Hamon law vote in March 2014.
It offers, in particular:
that reﬂect their needs;
f educational practices with clear and transparent
documentation;
the loan;
f socially responsible practices through a Support
unit within the customer relations centre itself and
partnerships with the Crésus association for ﬁnancially
vulnerable customers.
At the end of 2014, La Banque Postale Financement had
more than 488 employees operating from two locations in
the Paris region.
Outstanding consumer credit reached €4 billion at the end
of 2014.
Online broking
La Banque Postale has a consolidated wholly-owned
subsidiary, EasyBourse, providing online broking services
for 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. Customers can monitor the Stock
Exchange, manage their accounts (positions, unrealised
gains and losses, committed and available cash, order book)
and place orders from a mobile phone or tablet.
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.
(1) Market share taking into account €1.5 billion in outstanding home loans from Soﬁap as at 31 December 2014.
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Overview of business activities
La Banque Postale
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 the 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,
whose sales network was expanded in 2012. In 2014,
Titres Cadeaux won the prize for “Best Corporate Gift Card
Programme”.
Other business activities
The fund transfer business is another ﬁeld in which it is
active, comprising two separate business activities: ﬁrstly,
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 longterm 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. In 2014, La
Banque Postale also partnered up with “Hellomerci”, a
crowdfunding platform which supports French people in
their entrepreneurial projects.
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,
notably to prevent excessive debt and to develop an
unprecedented and comprehensive approach to banking
inclusion.
Since 2007, La Banque Postale has offered personal microcredit in partnership with local non-profit organisations
responsible for detecting and supporting projects
concerning people experiencing banking exclusion because
of their weak solvency (examples of partner associations:
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Secours Catholique, UDAF, French Red Cross, Les
Restaurants du Cœur, etc.). In 2014, the number of microloans granted rose 40% in relation to 2013.
Since February 2014, via the telephone platform of its
specialised subsidiary La Banque Postale Financement,
the personal micro-credit system called “accompagné”
has been offered to the B ank’s customers who cannot
obtain consumer credit due to their weak solvency: they are
directed either to the Crédit Municipal de Paris platform, a
partner of La Banque Postale (for customers in the Greater
Paris region), or to the website www.france-microcredit.org
(for all other customers) in order to identify the closest
partner to their residence to ﬁnance a micro-loan.
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 who do not have
access to banking credit. Since the implementation of this
partnership, more than 600 micro-entrepreneurs have
been supported and more than a hundred have been able
to complete their project thanks to ﬁnancing by Adie.
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 upon the
customer’s request through a unique abbreviated phone
number without a surcharge. The purpose of this new
service, comprising around thirty employees, is two-fold:
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. As at the end of 2014, nearly
4,000 customers were able to be supported.
On 25 June 2014, “L’Appui”, by La Banque Postale, was
selected as one of the “15 solidarity commitment initiatives
that will transform France”. These initiatives are supported
by the President of France as part of the “France commits”
programme. In November 2014, La Banque Postale was
recognised by the website choisir-ma-banque.com by
obtaining the Special “Everyone’s bank” prize for 2015,
notably due to “L’Appui”.
La Banque Postale, a partner of CRESUS since 2010
under its specialised subsidiary’s business activity
in consumer credit, strengthened its ties with this
association known for public utility and as a specialist
in supporting customers with excessive debt. Now, La
Banque Postale’s active customers who are experiencing
financial difficulties associated with over-indebtedness
and who cannot efﬁciently be supported by the “L’Appui”
platform are directed to CRESUS, which provides them
with intermediation support with various creditors in order
Overview of business activities
La Banque Postale
to coordinate long-term arrangements and appropriate
support for their ﬁnancial recovery.
La Banque Postale’s commitment also comes from support
from several banking education projects, carried out in
particular by La Banque Postale or Le Groupe La Poste
employees under a volunteer skills programme to promote
banking inclusion. La Banque Postale also supports the
Institute for public ﬁnancial education (IEFP), an association
approved by the Ministry of National Education, whose goal
is to help citizens acquire basic ﬁnancial knowledge and
continue the work it is leading in the think and action tank
“The Initiative against banking exclusion”, 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 Adie, Armée du Salut, ATD
Quart-Monde, CRESUS, the French Red Cross, La Banque
Postale, Emmaüs France, Habitat et Humanisme, Les Restos
du Cœur, the Secours catholique, the Secours populaire and
UNCCASS.
Lastly, La Banque Postale sits, alongside representatives
from the public authorities, consumer associations, family
associations, exclusion prevention associations and other
representatives from credit institutions, on the Banking
Inclusion Observatory (OIB), chaired by Christian Noyer (1).
Deﬁned under the banking law of 26 July 2013, the creation
of this observatory constitutes one of the ﬂagship measures
of the multiyear plan to prevent poverty and to promote
social inclusion adopted in January 2013. Its purpose is to
monitor credit institutions’ practices in the area of banking
inclusion, in particular with regards to ﬁnancially vulnerable
populations.
High net-worth customers
La Banque Postale currently has more than 600,000 high
net-worth customers to whom it offers a range of products
and services:
f investment solutions, notably discretionary management
service offered by La Banque Postale Gestion Privée
and inheritance funds offered by La Banque Postale
Asset Management, Tocqueville Finance and La Banque
Postale Structured Asset Management;
f high-end life insurance (Cachemire, a multi-support
and multi-manager contract, Excelis, a contract with
arbitration delegation, and Toscane Vie);
f premium means of payment (Visa Platinum Visa Inﬁnite
cards);
f tax optimisation solutions (Soﬁca, capital expenditure
managed by XAnge Private Equity, real estate investment
with La Banque Postale Immobilier Conseil, and Ciloger);
5
f personal-risk products: in the event of death, through
Sérénia; disability – particularly following a personal
accident – with Prévialys Accidents de la Vie; long-term
care with Protectys Autonomie.
To serve its high net-worth customers, La Banque
Postale employs a dedicated team of 824 specialist asset
management advisors across France, plus a team of
84 wealth management advisors for customers with the
most assets.
T h e s p e c i a l i s e d a ss e t m a n a g e m e n t a n d we a l t h
management advisors are able to offer the full range of
La Banque Postale products.
For real estate projects, these advisors work with the
Group’s advisors who have speciﬁc expertise in this area.
The wealth advisors have also been able to rely on BPE,
La Banque Postale’s new subsidiary acquired from Crédit
Mutuel Arkéa, since 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. Furthermore, BPE has more than 60,000
high net-worth customers.
BPE is supported by a national network of 33 branch
ofﬁces established in major French cities, including 11 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, has a real estate management offer to
complete the range of products and services to La Banque
Postale’s high net-worth customers.
Corporate customers
Companies, non-proﬁt associations, mutual companies,
hospitals, social housing organisations, local authorities,
etc., are all customers of La Banque Postale.
La Banque Postale had 423,000 legal entity customers at the
end of 2014, from large corporations to micro-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.
(1) The composition of the Observatory was published in an Order of the Minister of Finance and Public Accounts dated 1 August 2014, in the Ofﬁcial Journal.
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Overview of business activities
La Banque Postale
Rolled out in mainland 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 multichannel agency in
charge of guiding professionals and micro-businesses and
beginning loan ﬁle inquiries. Corporate customers can also
contact advisors in post ofﬁces to be put in contact with the
Multichannel Agency.
Outstanding loans to associations and legal entities
(€2.9 billion) were up 64% compared to 2013.
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.
On 14 October 2014, Le Groupe La Poste and players in
the Social and Solidarity Economy (ESS) met during the
launch of the Alliance Dynamique. Bringing together more
than 30 partners, this alliance grew out of the desire to
encourage regional development and services provided to
populations. La Banque Postale intends to play a leading
role in this Alliance Dynamique by developing an offer
adapted to the needs of ESS players.
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, and the factoring offer since 2013.
La Banque Postale also proposes support to customers in
the following three service areas:
f 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);
f 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;
f means of payment: the Visa Business card, reserved for
professionals, associations and corporations, allows for
easier spending management and better separation of
personal professional expenses. In terms of investments,
La Banque Postale is also providing customers with an
optional treasury management system;
f 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.).
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Thanks to its regional network, La Banque Postale is
reinforcing its expertise for players in the real and solidarity
economy, in order to support their projects and guide them
in managing the banking for their business. To do this, the
Department of Businesses and Regional Development is
working to implement concrete regional development
actions with a business structure which allows it to be
closer to customers.
Association customers
Furthermore, La Banque Postale is one of the leaders
in the non-profit market, with 299,000 small nonprofit organisations as customers, including nearly
10,000 manager associations, representing one third of the
market. La Banque Postale made available a community site
dedicated to non-proﬁt organisations, 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 allows
management associations to acquire new premises,
renovate old premises and carry out their building projects.
La Banque Postale completed its offering for associations
and professionals by also launching dedicated insurance
products:
f online property and casualty insurance for associations,
providing a range of basic coverage solutions and
optional coverage solutions adapted to the proﬁle of the
association taking out the policy;
f 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.
Overview of business activities
La Banque Postale
Local authority customers
La Banque Postale has been authorised to grant loans to
the local public sector since 25 May 2012.
Within this context, it has developed a new local ﬁnancing
model by setting up La Banque Postale Collectivités Locales
on 27 March 2013, in which La Banque Postale and Caisse
des Dépôts have respective interests of 65% and 35%.
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.
5
equipment lease to a professional customer was signed in
a post ofﬁce.
5.3.3.2 Insurance
The Insurance business segment includes nearly
560 employees who work in product development and
customer relations. La Banque Postale offers both personal
insurance (life and retirement insurance, contingency and
health) and asset and liability insurance (means of payment,
home, auto, legal protection). It is intended for private
individuals, professional customers and organisations.
In order to respond to local authorities’ short-term
ﬁnancing needs, La Banque Postale offers a treasury line
of credit usable by drawdowns (for a maximum of 364 days).
5.3.3.2.1 Life insurance (CNP Assurances)
La Banque Postale has also proposed a medium/long
term credit offering since November 2012, enabling
municipalities to manage their investment projects thanks
to ﬁxed or ﬂoating rate loans over terms of up to 15 years.
La Banque Postale is a shareholder (20.15% (1)) and markets
life insurance and capitalisation products on behalf of CNP
Assurances Group. In 2014, it accounted for 31.5% of the
CNP Assurances group’s revenue. These CNP products
constitute the majority of La Banque Postale’s life insurance
offerings.
In addition, La Banque Postale enables Local Authorities
to invest their surplus cash through a complete range of
collective investment vehicles including those adapted to
their speciﬁc regulatory constraints.
In November 2014, La Banque Postale and the European
Investment Bank (EIB) announced that they were
committing €300 million to support three big national
programmes launched by the government: the Hôpital
Avenir plan, the High Speed Network programme and the
Collèges et Emplois des Jeunes programme. This is the ﬁrst
partnership between La Banque Postale and the EIB in
France, which will support investment in local authorities
and healthcare institutions.
La Banque Postale offers segmented life insurance and
retirement solutions to better meet customers’ needs.
f retail customers: Vivaccio, Solésio Vie and PERP Horizon
are offers available to the general public through adapted
and scalable solutions;
f high net-worth customers: Cachemire, Cachemire
Patrimoine, Satinium, Toscane V ie, Solésio PERP
Évolution, ﬂexible and customisable contracts designed
speciﬁcally for the high-end market. Multi-platform and
multi-manager, the Cachemire and Satinium ranges also
offer discretionary management services.
Outstanding local authority loan balances amounted to
€3.6 billion at the end of 2014.
5.3.3.2.2 Contingency insurance (La Banque Postale
Prévoyance)
The professional customer market
La Banque Postale Prévoyance, set up in 1998 (under the
name Assurposte) is a subsidiary of La Banque Postale and
CNP Assurances. Its primary business activity is developing
individual and group contingency products adapted to
La Banque Postale’s customers’ needs.
Self-employed workers, retailers, artistans, freelancers:
more than three million professional customers already
visit post ofﬁces for their mail and parcel activity. As part
of the Group’s “La Poste 2020: Conquering the Future”
strategic plan, La Banque Postale is planning to grow its
customer base.
By 2020, La Banque Postale’s goal is to implement a new
dedicated banking area with 1,000 professional customer
managers in post ofﬁces. In early December 2014, the ﬁrst
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.
(1) 18.4% via Sopassure and 2.01% call option.
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5
Overview of business activities
La Banque Postale
The quality of its contingency insurance range was once
again recognised by the profession in 2014. In fact, 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
2014, 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 received an award once again this year).
With more than 360,000 new cases and 2.7 million
policies in its portfolio at the end of 2014, 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.
5.3.3.2.3 Health care (La Banque Postale Assurance
Santé)
In 2010, to develop the health insurance activity and
capitalise on its growth potential, La Banque Postale
created 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 bank
offering both through face-to-face and online channels,
including through the 420 financial centre development
ofﬁcers, and since mid-2013, at all post ofﬁces, due to the
important training plan for 17,000 post ofﬁce and ﬁnancial
centre advisors.
The successful roll-out of health insurance products in
La Banque Postale’s network is a true success, resulting in
a sale of more than 60,000 products in 2014.
The standard offer is made up of three targeted formulas,
each comprising four levels of guarantees that each
customer can subscribe to according to his/her needs:
f “Formule Solo” for people insuring themselves only, up
to 55 years of age;
f “Formule Familles” for couples or families with children;
f “Formule Senior” for people over 55.
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5.3.3.2.4 Property and liability insurance
La Banque Postale proposes a range of property and
casualty insurance to private individuals through its
subsidiary La Banque Postale Assurances IARD (65%-held
by La Banque Postale and 35%-held by Groupama). The
focal point of the range is centred around auto insurance,
multirisk household and legal protection insurance sold
through all distribution channels.
An omnichannel system (telephone, Internet and post ofﬁce)
enables customers to choose their mode of communication
and to anticipate changes in uses.
To meet the wide range of customer expectations, and
particularly those of young people and families, La Banque
Postale Assurances IARD has expanded its offering by
launching “pocket” products. An extended warranty, which
covers the major types of household appliances, audiovisual
devices and computer equipment in the event of fault or
failure, is also offered as multirisk home insurance.
Insurance for portable devices (mobile phone, tablets, etc.)
protects most portable devices for household members in
the event of accidental damage while travelling. These two
policies cover all household members.
In a very competitive and slow growing market, at midyear, La Banque Postale Assurances IARD crossed the one
million policy threshold and holds a portfolio of more than
1,100,000 policies as at 31 December 2014, less than four
years after launch.
Several awards continued to be handed out to La Banque
Postale Assurances IARD in 2014 for its Digishoot and
Passeport Secours services (Argus d’Or 2014 award for
Marketing Excellence 2014), illustrating its strong growth
in the market and the effectiveness of researching services
rolled out to continually provide better service to its
customers.
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 primarily relate to current accounts (Alliatys
means of payment insurance subscribed by 6.7 million
customers), insurance for bank cards (7.85 million), mobile
telephone devices, savings products, credit products of
all kinds for retail customers as well as for professional
customers, associations, companies and social housing
operators.
Overview of business activities
La Banque Postale
5
5.3.3.3 Asset Management
LBPAM also manages a range of savings products that
covers the main asset classes, including:
The Asset Management activities cover the Group’s thirdparty 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 274 people working on product
development and customer relations.
f UCI euro money market funds to manage their cash
At the end of 2014, assets under management amounted to
€158 billion, up 6% from 2013.
Since August 2013, all of 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.
5.3.3.3.1 Multi-expertise investments
(La Banque Postale Asset Management)
La Banque Postale Asset Management (LBPAM), a
wholly-owned subsidiary, is the fifth largest French
asset management company in terms of assets under
management, and specialises in the management of
benchmarked UCI within the unit and operates in the main
financial markets. LBPAM has developed a full range of
collective investment undertakings in order to meet the
requirements of individual 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 an infrastructure and
real estate debt fund for its institutional customers. In total,
the commitments set out for all of the funds and sub-funds
amounted to €860 million in 2014. As a recognised 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, LBPAM developed a large range of SRI collective
investment undertakings 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 2014.
La Banque Postale also operates in the employee savings
sector through the open-ended or dedicated employee
savings vehicle (FCPE) managed by LBPAM.
assets;
f UCI bond funds invested in government and corporate
bonds. If these UCIs are invested mainly in the Euro
Zone, the range also includes international bond funds
hedged against exchange rate risks;
f diversified UCI funds to take advantage of asset
allocation strategies of experts within the framework
of benchmarked management or ﬂexible management
seeking to achieve absolute performance. The range
of diversified funds includes UCIs invested directly in
securities, in “in-house” UCIs, or in multi-management
funds, through specialists selecting external funds;
f equity UCIs centred on three areas of expertise: basic,
insurance and quantitative;
f debt funds with infrastructure and real estate sub-funds;
f as well as fully or partially capital guaranteed structured
UCIs managed by La Banque Postale Structured Asset
Management, a 99.99%-held subsidiary of LBPAM.
Following their exclusive negotiations which began on
18 December 2014, on 18 February 2014, La Banque
Postale, La Banque Postale Asset Management and Aegon
Asset Management signed an asset management equity
and industrial partnership agreement on 18 February 2015.
The goal of this agreement is to develop and expand La
Banque Postale Asset Management’s (LBPAM) expertise.
The transaction involves Aegon Asset Management (Aegon
AM) holding a 25% equity investment in the share capital
of LBPAM.
This transaction should be completed before the end of the
second quarter of 2015, subject to approval by the relevant
authorities.
5.3.3.3.2 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 corresponding to different profiles from the
most cautious to the most dynamic, and which 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
professionals. These professionals select investment
vehicles from a large choice of ﬁnancial products: direct
purchases of equities or through UCIs managed by Group
management companies or top-tier external management
companies.
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5
Overview of business activities
La Banque Postale
5.3.3.3.3 Equity management (Tocqueville Finance)
La Banque Postale also offers its customers UCIs from
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 networth customer segment that does not necessarily have
banking relations with La Banque Postale.
5.3.3.3.4 Open-ended property funds (OPCI) and
real estate investment partnerships (SPCI) — (Ciloger)
La Banque Postale offers its customers diversiﬁcation or
tax optimisation 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%.
Continuing its development, Ciloger surpassed €4 billion
in managed real estate outstandings in 2014. Therefore,
the following, in particular, were distributed through the La
Banque Postale network: the Atout Pierre Diversiﬁcation
5.3.4
There are also products intended for legal entity customers:
companies, institutions (mutual companies, pension funds
and insurance companies, etc.). La Banque Postale offers
a range of professional non-listed REITs that are specially
developed to meet these customers’ requirements and
constraints.
5.3.3.3.5 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 La Banque
Postale. With branches in France and Germany, it has
a team of nine experienced investors, responsible for
monitoring and directing their 70 equity investments.
In 2014, XAnge Private Equity continued its investment
strategy with more than €40 million used to finance 35
companies, divided up into 14 new investments and 21
investments in companies already in the portfolio.
Strategy and outlook
As part of the continuation of Le Groupe La Poste’s
“La Poste 2020: “Conquering the Future” strategic plan,
La Banque Postale implemented a development plan for
2020 called “Boldly creating the bank of the future”, which
notably prioritises the commercial development of all its
customers.
5.3.4.1 Strengthening presence in the
retail, corporate and local authorities
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.
60
REIT – awarded by the Mieux Vivre Votre argent magazine by
obtaining the Grand Prize of diversiﬁed REITs, the Ciloger
Habitat 4 REIT – one of the two Duflot REITs marketed
in France – and the Immo Diversification Open-ended
Property Funds (OPCI) which is open for subscription as
life insurance.
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LE GROUPE LA POSTE
La Banque Postale will boost its operations in the retail
market by way of several development priorities:
f by offering appropriate solutions to marginalised
customers, and by ensuring the funding of La Banque
Postale’s general interest duty;
f by rounding out the range offers to high-potential
customers (in banking & insurance, and wealth
management);
f by continuing to improve the effectiveness of the Network
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.
Overview of business activities
La Banque Postale
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 organisation 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.
Lastly, launched in 2014, activities for the professional
customer market will continue to be rolled out by building
a sales force specialised in post offices throughout the
country. The professional market is currently dominated
by leading banking groups; 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.
In this context, dedicated sales persons will be sent to the
largest post ofﬁces in 2014. The roll-out of this model will
improve the customer contact area, and will enable advisors
to be closer to their customers and to capitalise on the post
ofﬁces’ local advantage.
5.3.4.2 Continuing to develop 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:
f making digital technologies serve commercial
development;
f simplifying the interoperability between the channels;
f adding the know-how of Le Groupe La Poste to the online
services;
5
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.
5.3.4.3 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. After
increasing La Banque Postale’s prudential equity capital
by more than €1 billion in 2013, the Board of Directors of
La Poste and the Supervisory Board of La Banque Postale
approved a new capital increase in the form of a contribution
in kind (1) in late October 2014 of nearly €633 million. This
new step towards increasing the capital base and solvency
reinforces the implementation of the bank’s development
strategy.
Through these transactions, Le Groupe La Poste has
strengthened the commercial development of its bank and
its multi-business approach. These transactions represent
a major step towards strengthening the Bank's ﬁnancial
structure and solvency, in accordance with the strategy
aimed at developing its lending businesses.
Over the coming years, La Banque Postale and La Poste
will continue to maintain a strong and close relationship, in
order to create optimal synergies and support the Group’s
development.
5.3.4.4 Reinforcing employee
professionalisation
The Bank and La Poste Network School, created in 2014, is
in charge of ramping up the skills of the 70,000 employees
of La Banque Postale, Financial Services and the Network.
It is a primary priority for La Banque Postale, in terms of
skills development in all markets, notably in the area of
high net-worth customers and the professional customer
market.
f developing the attractiveness, visibility and prioritisation
of the “La Banque Postale” brand;
f developing new ways of running a bank by taking
advantage of digital ecosystems.
The ﬁrst class of Professional Customer Managers took
place at the La Banque Postale head ofﬁce on 6 October
2014. The classes will continue taking place to obtain the
Group’s goal of 1,000 Professional Customer Managers
from now to 2020.
(1) Cash held at the post ofﬁces.
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5
Overview of business activities
La Poste Network
5.4
5.4.1
La Poste Network
La Poste Network: a local network with a banking priority
2014
(€ million)
Revenue
2013
pro forma
2014/2013 change
amount
%
4,167
4,165
+2
+0.1%
Operating expenses
(4,139)
(4,124)
-15
+0.4%
OPERATING PROFIT
25
33
9
-26.2%
(a) Operating proﬁt/(loss) after share of net proﬁt of companies under joint control (application of IFRS 10 and IFRS 11 as at 1 January 2014. A pro forma
income statement was created as at 1 January 2013).
As the distribution network of Le Groupe La Poste business
units for retail and professional customers (1), La Poste
Network 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
units. Its accessibility is one of its primary strengths: 96.6%
of the French population lives less than ﬁve kilometers away
from a postal service outlet.
The Network’s founding mission is to welcome, serve and
advise the customers of La Poste and of its business units,
with three speciﬁc goals:
5.4.1.1 Original features
A network indispensable for both the functioning
of the Group and French society
La Poste Network is a multi-business and multichannel
distribution network vital to French society’s functioning.
In 2014, 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 (ATM) (2).
f 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 5.7.2);
f implement the commercial policies of Le Groupe
La Poste’s business units;
f achieve a value-creating level of performance for the
Group and its business units, by means of multichannel
development and process optimisation.
An original model in Europe
La Poste Network offers a multi-business model that is
unique in Europe. The models employed in most other
European countries have resulted in downsizing the post
ofﬁce network.
A multi-business positioning with a distinct banking
dimension
The La Poste Network model allows the business units
to share the cost of a commercial organisation that offers
accessibility to a vast number of people, while ensuring
the sustainability of a network that is both extensive and
efﬁcient. The resulting environment favours the mutual
development of the different Group activities.
(1) “Professionals” refers to any person supplying goods or services (e.g. industrial, commercial, craft activity, freelance, agricultural or others). This customer
base is primarily composed of local shopkeepers, small traders, freelancers, etc., who are offered cards that give them special access to La Poste Network
services.
(2) Customer satisfaction survey: BVA phone survey and IPSOS post ofﬁce exit interviews.
62
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LE GROUPE LA POSTE
Overview of business activities
La Poste Network
In 2014, La Poste Network accounted for 18% of Mail’s
revenue, 26% of Parcels' revenue, 9% of Chronopost’s
revenue, 97% of La Poste Mobile’s sales and completed
more than 162 million bank transactions at its counters.
Transactions of any kind completed on self-service kiosks
totalled 690 million. In addition, banking advisors in the
Network held 7.7 million banking advice appointments, it
accounted for 68% of consumer credit, 82% of home loans (1)
and 100% of net collection for private individuals.
Relations between La Poste Network and the business
unit s 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 Network
invoices its services to the business unit s and Group
subsidiaries (including all or part of certain services), based
on the cost of the resources employed.
A network with a banking priority
The evolution of the Network implies the afﬁrmation of its
banking dimension.
In 2014, as part of the Group’s new strategic plan, new
organisational principles were implemented to create
new synergies between La Banque Postale and La Poste
Network and move decision-making down to the level of
managers in contact with customers.
5
Types of public outlets
To successfully change its local postal coverage and
continually adapt its structure to its customers’ lifestyles,
La Poste Network has gradually built up and expanded a
network comprising two types of public outlets: directlymanaged post ofﬁces on the one hand, and retail outlets
managed in partnership on the other hand.
Furthermore, retail customers have access to postal
services at around 25,000 newsagents and 5,000 large
retailers that offer products from the Mail (stamps, stamped
envelopes and pre-paid envelopes), Parcels and Express
(Colissimo and Chronopost) ranges.
Directly-managed post ofﬁces
There were 9,574 post ofﬁces at 31 December 2014;
these are the physical showcase for Le Groupe La Poste’s
integrated services, and are intended for all retail and
professional segments. Marketing all products and
services, they offer the broadest range of Group products
and serve as support points for the development of new
services. They offer:
f banking services: standard counter transactions,
personalised banking advice, property and casualty
insurance products, consumer credit, home loans, etc.;
f mail services: purchase of pre-paid envelopes, delivery of
Green Mail, postage, mail pick-up, mail forwarding, etc.;
5.4.1.2 Network structure
f parcels and express services: sale, drop-off and pick-up,
La Poste has 17,104 public outlets throughout France, 60%
of which are in rural municipalities (2).
f mobile telephones.
Postal service coverage meets the population’s
requirements. La Poste consults elected ofﬁcials within the
framework of the national and departmental governance
bodies set up through a local postal coverage agreement
(see Chapter 5, Section 5.7.2.2). The local postal coverage
agreement in place pertains to the 2014-2016 period
and it was signed on 16 January 2014 by La Poste, the
French government and the French Mayors’ Association
(Association des Maires de France) (see Chapter 5,
Section 5.7.2.2).
etc.;
Over the past few years, La Poste Network has implemented
a major post ofﬁce transformation plan aiming to make the
service areas more modern, welcoming and customeroriented. The roll-out of the post ofﬁce concept called
Customer Service Area (ESC) began in the 1,000 largest
ofﬁces: by the end of 2014, 1,799 ofﬁces had adopted the
ESC/ESCI layouts (1,659 as at late 2013). This ESCI (3) format
offers the customer a uniﬁed commercial area with clearly
identiﬁable sales and banking areas distinguished by a
colour-coded design (yellow for mail and parcel areas, blue
for the banking area).
(1) Excluding social housing loans.
(2) Urban/Rural INSEE 2010 + all urban municipalities with fewer than 2,000 inhabitants (2010 census) transferred to rural.
(3) ESC-I: Integral Customer Service Area: implementation of the ESC concept in a redesigned space characterised by the increased ﬂuidity of the customer
pathway, made more intuitive and autonomous through automation and a strengthened synergy between counter clerks, who advise and guide customers,
and the banking business. The ESC layout has been rolled out since 2009 across high-ﬂow ofﬁces (1-1,300). The ESC-I solution has expanded on the
concept by removing traditional counters and directing customers either, in the case of the full version currently being rolled out across medium and large
ofﬁces, towards withdrawal and deposit banking ATMs, or, in the case of smaller ofﬁces (2,000-4,000), towards smaller, less costly modular solutions
(in the process of being set up).
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Overview of business activities
La Poste Network
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 7 minutes and
19 seconds in November 2009 to 4 minutes 8 seconds in
2014. Meanwhile, the average time taken to gain access
to services (all counter and non-counter transactions)
amounted to 3 minutes 52 seconds in 2014.
Overall customer satisfaction continued growing in 2014;
therefore, based on surveys conducted over the last six
months, 91% of customers stated that they were satisﬁed
with their post ofﬁce (up 2 points compared to 2013 and up
9 points compared to 2007). This score increases to 95%
when customers are surveyed when leaving post ofﬁces,
immediately following their experience (1).
Retail outlets managed in partnership
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 (APCs), or private operators
(shopkeepers), in the case of Relais Poste outlets.
The number of public outlets under partnership increased
by 141 in 2014, which brought the number of partnerships
to 7,501 (2) at 31 December 2014, as part of a network that
includes 17,075 public outlets (3) serving customers.
The partnerships are very warmly welcomed, due in
particular to the longer opening hours. In addition, they
help deepen the relationship with the inhabitants of small
municipalities, retain the last shop and the attractiveness
of the municipality for new inhabitants.
Local Postal agencies
The 5,438 APCs (at the end of 2014) 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 (CCP) 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.
The framework agreement covering APCs between La Poste
and the French Mayors’ Association (Association des Maires
de France) 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
In the 2,061 Relais Poste outlets (at the end of 2014),
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
and Livret A passbook savings accounts). In exchange,
they receive a ﬁxed fee and transaction commissions on
business activities.
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, or even franchises of a brand.
In 2014, Le Groupe La Poste also tested out Relais Poste
outlets in urban areas (see above).
Accessibility of public outlets
Geographic accessibility
La Poste Network is located in urban areas thanks to
6,813 public outlets (4), 6,102 of which are ofﬁces and
711 are APC/RP partnerships. 866 post ofﬁces are located
in deprived urban areas or are serving one: these ofﬁces,
293 of which make up the 1,000 largest facilities, generate
16.6% of business volumes at the counters.
The Network operates through 10,242 public
outlets (4) (3,457 post ofﬁces and 6,785 partnerships) (as
deﬁned by INSEE (5)—French National Institute of Economic
and Statistical Information). The number of public outlets in
rural revitalisation areas or mountain areas totalled 5,691
(1,909 post ofﬁces and 3,782 partnerships).
(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 (10 public outlets in overseas territories (St-Barthélémy, St-Martin and St-Pierre and Miquelon), 14 in Andorra
and Monaco, and ﬁve military ofﬁces).
(4) Excluding Mayotte (20 public outlets).
(5) Urban/Rural INSEE 2010 + all urban municipalities with fewer than 2,000 inhabitants (2010 census) transferred to rural.
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Overview of business activities
La Poste Network
5
Relational accessibility
5.4.1.3 Strategy and outlook
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 La Poste Network.
Employees 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 Network involves its development through a new
strategic project, “Excellence and Development”, in line
with Le Groupe La Poste’s “La Poste 2020: Conquering the
Future” strategic plan. Its objectives are clear: to become
the leading local service network.
La Poste Network has more than 56,000 employees, close
to 85% of whom work in post ofﬁces, which make up close
to two-thirds of counter clerks. The Financial Services sales
force accounts for more than 10,000 employees.
Physical access
The Group has a plan for making its public access buildings,
including post ofﬁces, accessible: concerning La Poste
Network, at the end of 2014, 84% of the Network’s directlyowned locations and 51% of its leased locations were
accessible to persons with reduced mobility (PRM).
La Poste Network 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.
Digital accessibility
The 2014-2016 local postal coverage agreement follows
the framework of previous agreements by continuing to
renovate post ofﬁces and develop partnerships, particularly
through the pooling of public services.
Moreover, it aims to improve accessibility to services,
notably through digital services, which should help make
postal offerings more available to the public. The initial
trials of touch screen tablets in APCs launched in 2013
illustrates this. After the success of this test phase in 2013,
1,059 digital tablets with touch screens were rolled out to
APCs in 2014 and early 2015. They enable customers to
access La Poste’s services online and the major public
service sites as well. Additionally, almost 250 Relais Poste
outlets have been equipped with a smartphone and a label
maker to enable them to perform essential tasks (product
sales, scanning monitored objects, postage, business
reporting). In an equipped and connected country, close
to 20% of households do not have Internet access (1),
particularly in rural areas, but the availability of these
tablets decreases the digital divide.
Striving for excellence in quality of service
and customer relations
Over the past few years, La Poste Network, 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.
Developing value added offerings
The Network is continuing to develop service innovations in
synergy with Group business units seeking to optimise the
potential of each.
It is developing high value-added and service-generating
offerings by shifting simple transactions to alternative selfservice channels (development of automated machines (2)).
Reducing the workload on counters enables counter clerks
and advisors to focus on transactions that require their
expertise and offer personalised service.
At the same time, the Network maintains a customeroriented focus to identify changes in their expectations
in terms of services and offerings: for example, a pilot 3D
printing service for private individuals and professionals
was tested out in November 2013 in three post ofﬁces in
the Paris region. Local advice was given by expert advisors
called “3D advisors”, who provide access to 3D printing
shared resources and support individual and professional
customers throughout the country for their projects. The
success of this trial led to extending this offer in new
post ofﬁces in 2014. The goal for 2015 is to ensure that
this business development takes root, especially with the
professional customer market in regard to the ecosystems
created in line with the core businesses.
(1) Source: Médiamétrie Home Devices study (April-June 2014).
(2) The Network uses approximately 21,311 automated machines:
• 5,749 “Mail and Parcels” ATMs (postage and stamp dispensers);
• 15,562 banking ATMs (cash dispensers, coin change machines, cheque deposit boxes, cheque scanners, and automated cheque deposit machines).
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Developing offers for professionals
Better serving professional clients is a focus area of Le
Groupe La Poste’s strategic plan and involves Mail, Parcels
and La Banque Postale. One of the challenges is using
the multi-business unit nature of post ofﬁces to make Pro
customers’ lives easier and help them save time by offering
them services that meet several of their needs.
With its “Bank for Pros” programme, La Banque Postale
is encouraging renewed growth within the post ofﬁces.
By 2020, La Banque Postale’s goal is to implement a new
dedicated banking area with 1,000 Pro Customer Managers
in post ofﬁces.
with tablets adapts to customers’ new uses, simpliﬁes
processes and better organises mobility in the post ofﬁce.
Tablets also perform services that are traditionally offered
at the counter: product sales, item drop-off, picking up
items on hold, etc. Applications also print register receipts
from Bluetooth printers and generate quotes for La Poste
Mobile subscriptions.
Adapting the network: Differentiating formats
In a time of decreasing counter activity, the Network
is continuing to develop its network of public outlet
partnerships to:
f ensure the sustainability of the rural network, within the
Simplifying customer pathways and product ranges
The Network is pursuing initiatives to simplify customer
pathways in an effort to continue adapting to the
expectations of increasingly connected customers who
come to the post ofﬁce for advice and simplicity: in 2014,
after conducting tests, the Network decided to roll out a
new layout to all ESC ofﬁces offering a better structured
sales area with more visible signage, a simpler selfservice offer organised by customer need with clearer
merchandising and clearly identiﬁed areas. Gradually,
customers will have two speciﬁc zones through which to
process shipments: one zone to choose Ready-to-Ship
(packaging and postage included) and a zone to prepare
shipments yourself (packages that need postage). These
zones had been implemented in more than 350 ofﬁces as
at 31 December 2014.
In the post ofﬁce, the offer is also more ﬂexible and makes
the product ranges easier to understand. For example,
a new simplified mail-parcels range (see Chapter 5,
Section 5.1.5.3) or a new packaging concept with various
layouts, sold in addition to postage.
Integrating digital services in the Network’s
offerings and uses
Simplifying customer pathways is also part of a growing
multichannel dimension, integrating digital services in the
Network’s offerings and uses.
In post ofﬁces, digital tablets are made available to Network
employees. After a trial period in 2013 in which a few post
ofﬁces experimented with sales, advice and scanning via
touch screen tablets, 59 post ofﬁces were equipped in 2014,
enabling employees to offer customers a new, faster and
more modern type of customer service. Initial feedback
from customers has been positive. Equipping post ofﬁces
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framework of a constructive relationship with the local
population and their elected representatives;
f cut network operating costs by transforming under-used
post ofﬁces;
f reduce regional disparities in terms of local service
offerings. The new 2014-2016 local postal coverage
agreement signed by La Poste, the French government
and the French Mayors’ Association (Association des
Maires de France) emphasises the pooling of public
services (shared service spaces, i.e. Relais de Service
Public or maisons de services publics (public service
areas). This pooling of public services could also take
other forms, notably by ﬁnding new types of partnerships
(in line with the social economy sector (ESAT), tourist
ofﬁces, service stations, newsagents, etc.). In 2014, the
Group experimented with offering postal services in
nursing homes;
f revitalise its presence in urban areas by rethinking its
layouts and allure and by differentiating the post ofﬁces
more, based on their customers: La Poste, which
must anticipate urban change, is going to update the
location of its network, adapt its presence, integrate
the environment with its urban logic and encourage
partnerships with cities (Relais Poste outlets). At this
stage, projects were launched in four pilot cities in 2014 –
Bordeaux, Paris, Lyon and Dijon. Trial runs in outlets are
in progress and others are going to be launched in 2015.
The goal is to provide targeted and concrete solutions
to customer requests, particularly in terms of operating
hours;
f play a part in providing services that are high-quality,
accessible and tailored to the location and customer
lifestyles.
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.
Overview of business activities
La Poste Network
Afﬁrming its banking priority
The Network supported its effort to keep banking a priority
in 2014 speciﬁcally by creating a single commercial
structure as well as an HRD and a shared training school
for the Network and La Banque Postale (see Chapter 5,
Section 5.3.4.4).
5.4.2
5
The goal of this new structure is to bring together the
Network and La Banque Postale’s teams to step up
commercial development in banking for private individuals
and professionals. By the end of 2020, 1,000 advisors
for high net-worth customers and 1,000 advisors for
professional customers will be deployed throughout the
country.
La Poste Mobile
5.4.2.1 General information
sales. The consequence has been the widespread adoption
of “unlimited” voice, data and messaging offers.
Since May 2011, La Poste Mobile offers a complete mobile
telephone services range, SIM-only or contract plans, with
or without mobile phones and pre-paid plans.
However, mobile plan prices stopped falling so much in 2014
because operators started enhancing their offers rather
than lowering rates again.
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. It is a
Mobile “Virtual” Network Operator, or MVNO: not having its
own network, it uses the network of the host operator, SFR.
SFR contributes its knowledge and Le Groupe La Poste
provides access to the Network’s distribution network in
exchange.
2014 also conﬁrmed the trend of separating mobile phone
and SIM card purchases. The subscription of a contract plan
is therefore increasingly independent of the purchase of the
phone (in nearly 50% of purchases).
5.4.2.2 Market and offers
The mobile telephone services market in France
The mobile telephone services market had 74 million active
customers in mainland France as at the third quarter
of 2014, i.e. a penetration rate of 116% of the population.
The market is growing, with a customer base increasing
by close to 3.4 million customers as at the third quarter of
2014, i.e. a net growth of +4.8% year on year (1).
Lastly, the market boosted its consolidation process,
resulting in the Numericable group purchasing SFR and
Virgin Mobile and the Prixtel MVNO acquiring “zéro forfaits”.
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 of
the offers and mobile phones are accessible to customers
in all post ofﬁces, either immediately or within 72 hours,
after delivering directly to their home. In addition to the
post ofﬁces, products and services are also offered on
the Internet at www.lapostemobile.fr and by telephone
(multichannel distribution).
With close to 9 million subscribers as at the third quarter
of 2014 (up one million in one year), MVNO market
share reached 11.7% in the overall market (14.1% in the
residential market).
In 2014, La Poste Mobile continued to focus its business
strategy on selling no-commitment mobile plans and SIMonly mobile plans. In July, the launch of a SIM plan with
unlimited voice and text messaging for less than 10 euros
per month was very successful.
Market trends
The mobile telephone services market continued its
transformation in 2014.
La Poste Mobile also enhanced the content of its plans while
maintaining the same price levels, so to respond to users’
increasing need, there has been a signiﬁcant increase in
offers with Internet access.
The explosion in Internet use is well established and
smartphones now represent three-quarters of mobile
In September, La Poste Mobile launched “Music” plans
integrating unlimited streaming access on a catalogue of
(1) Source ARCEP: Observatory of electronic communications markets – third quarter 2014 and 2013.
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Overview of business activities
Digital Services
more than two million titles from the Universal group. This
offer was marketed towards “young” customers (teens and
young adults) at a very competitive rate.
La Poste Mobile has also developed no-contract mobile
sales, responding to increasing market demand.
Lastly, sales of the ADSL offer based on the SFR box
have sharply increased. This offer entitling customers to
a discount on one additional mobile line helped generate
customer loyalty.
This policy helped attract 730,000 new customers in
2014. Net sales (after terminations) totalled 210,000.
The customer base increased 22% to reach 1.15 million
customers at the end of 2014, including 930,000 contract
customers. Revenue amounted to €182 million, up 23%
compared with 2013.
The decrease in ARPU (1) was suppressed compared to
last year with a decrease of 9%. This decline is due to rate
adjustments for the entire contract customer portfolio
and to the penetration of low-price offers without mobile
phones. Adjusting the rates for contract customers played
a substantial part in the signiﬁcant reduction in the
termination rate.
La Poste Mobile continued to honour its promise of having
the best price in addition to local service. La Poste Mobile
rolled out new terms of sale, which enabled the company
to continue its rapid growth. According to the surveys
conducted among customers, 97% conﬁrmed that they
5.5
5.5.1
were satisﬁed or very satisﬁed with the advice and service
received at the post ofﬁce and almost one out of two have
already recommended the operator to friends and family. A
majority of customers state that it took “little effort” or “no
effort” to subscribe to or modify a contract. Lastly, La Poste
Mobile is one of the operators that customers trust the
most, ranking an average score of greater than 8/10 (2).
5.4.2.3 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 employees and after-sales service management are two
major advantages for La Poste Mobile, which beneﬁts from
the strength and trusted name of La Poste and the quality
of the SFR network.
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 2015, La Poste Mobile’s goal is to maintain the
commercial momentum of 2014 by relying on synergies with
the Group’s other business units and La Banque Postale
in particular. The Group is expecting to further reduce the
termination rate of contract customers. Lastly, increasing
no-contract mobile sales and accessories will be a priority.
Digital Services
General points and key ﬁgures
2014/2013 change
2014
2013
pro forma
amount
%
Revenue
539
549
-9
-1.7%
External revenue
487
495
-7
-1.5%
52
54
-2
-3.5%
(62)
7
-70
N.S.
(€ million)
Intercompany revenue
OPERATING PROFIT
n.s.: not signiﬁcant.
(1) ARPU: Average Revenue Per User (revenu moyen par personne).
(2) Sources: Maxiphone research (March-July-September 2014) and GN Research (May-September 2014) for La Poste Mobile.
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Overview of business activities
Digital Services
The digital revolution, which has profoundly and irrevocably
been changing professional and personal lifestyles as
well as the economy, is an opportunity for Le Groupe
La Poste, which has high ambitions under its “La Poste
2020: Conquering the Future” strategic plan. In April 2014,
after creating the Digital Services Department in 2012, a
Digital Services business unit was created in its own right,
resolutely entrenching digital services into the Group’s
strategy and making it the focus of a major transformation.
The Digital Services business unit carries out three
missions. The ﬁrst is a revenue development mission: the
business unit produces and markets digital offers, solutions
and services in the area of digital transformation, digital
marketing and digital trust, by adding to classic desktop
publishing and ﬁling products.
5.5.2
5
It also carries out two additional missions. A “Laboratory”
mission: through several programmes, notably start-up
incubation, it is responsible for detecting, developing and
industrialising digital innovation to serve the Group. It is also
responsible for taking on collective interest services to serve
the other Group business units, e.g. the implementation
of a corporate social network and putting in place digital
assimilation training. It is in charge of the group Data
policy. Lastly, it is also the head of the high-priority shared
project (1) “knowledge of individual customers”, intended to
unify the Group’s different individual customer databases.
All of these actions will enable Le Groupe La Poste to play
a pivotal role in bringing together the physical and digital
worlds.
Structure
The Digital Services business unit comprises a Digital
Services Department housed within the La Poste parent
company and subsidiaries performing all or part of their
activities in the digital domain (2):
f t h e D i g i t a l S e r v i ce s D e p a r t m e n t ( c re a t e d i n
2012) combines innovation activities, the internal
t ra n s fo r m a t i o n p ro g ra m m e , t h e D i g i t a l Tr u st
Programme focused on the Digiposte digital safe and
“L@Poste Online” activities (see Section 5.5.3.1), the
online customer experience simpliﬁcation project and
the development of commercial services on the Internet;
f the group formed by Docapost includes all of the
solutions and services that manage the professional
data exchanges between companies and institutions
and their target audiences. Docapost offers 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, service
subscriptions and archiving) and e-services (electronic
certiﬁcates, secure BtoB electronic exchanges, e-vote).
Docapost has 4,600 employees in four subsidiaries, and
generated consolidated revenue of €435.5 million in
2014;
f the group formed by Mediapost Communication
encompasses all of the expertise related to the
web to support advertisers in implementing their
communication strategies with their customers and
potential customers: from online advertising campaigns
to customer knowledge and performance measurement,
including the production of materials and promotional
offerings.
Following several acquisitions in 2012 (BudgetBox,
MixCommerce, Adverline, Vertical Mail and Cabestan)
and in order to help integrate this new expertise and
create synergies, during the second half of 2014,
Mediapost Communication was reorganised around three
divisions: Consulting (Mediapost Publicité, Matching
and Mixcommerce), Customer Data Intelligence
(SDS, Mediaprism, Cabestan and Vertical Mail) and
Media (Adverline). In 2014, Mediapost Communication
generated nearly €100 million in revenue and employed
252 employees. The company operates in France and in
Belgium.
On 26 May 2014, Le Groupe La Poste also launched Start’in
Post, a subsidiary devoted to a complete programme to
incubate, accelerate and support innovative start-ups:
responsible for concept tests, industrial and commercial
(1) As part of its new strategic plan, in April 2014, the Group deﬁned ﬁve high-priority cross-entity projects aiming to capture new markets by 2020.
(2) Subsidiaries previously housed within Mail and transferred to the Digital Services business unit, as part of the Group’s new structure in 2014.
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Overview of business activities
Digital Services
development support, consultancy and access to La Poste’s
network, and, in some cases, ﬁnancing growth. The Digital
Services business unit is entrusted with the management
of this incubator. Through Start’inPost, the Group aims to
support the development of start-ups whose technological
initiatives and uses could stimulate business in La Poste
and in its subsidiaries’ current and future markets. Projects
are chosen according to three major themes, in line with
the “La Poste 2020: Conquering the Future” strategic plan,
services for business, e-commerce, and more generally,
professional customers, home services (that can mobilise
postmen) and digital trust solutions.
5.5.3
La Poste’s operational entities are “industrial sponsors” for
the start-up, particularly to carry out testing in real market
conditions. Start’inPost was provided with €5 million in
share capital and aims to welcome 24 start-ups per year
at full development. In ﬁve months of activity, Start’inPost
received 142 applications. At the end of November 2014,
the programme launched five tests between the startups and the Group’s operational entities. One of them
ended positively with a business partnership between the
company Heuritech and Media Data Live (1) and integrated
the acceleration phase of the Start’inPost programme.
Heuritech is specialised in reprocessing Big Data with
the aim of improving communication, advertising and
promotional campaign targeting.
Business activities
The Group’s online presence is organised around three
pillars:
5.5.3.1 L@Poste online
“L@Poste online” is La Poste’s new online customer
relations model (private individuals, professional
customers and corporate customers), for advice, supply
and management of customer relations and after-sales
service. This system covers several dimensions (websites,
mobile applications, social media) as well as several scopes
(information, commercial and non-commercial services).
The three dimensions of the Group’s online presence
In a cross-channel and omni-channel era, each customer
must be able to choose how he or she will interact with
Le Groupe La Poste: today, customer relations take place
from a computer or smartphone as often as in post ofﬁces.
The convergence between different public outlets (digital
and physical) is one of the key objectives of the Group’s
Digital Services business unit: developing digital tools to
facilitate customer pathways towards physical public outlets
(primarily post ofﬁces) and conversely, integrate digital tools
in the physical locations.
f the fixed Internet is based on four main web portals
(www.laposte.fr, www.laposte.net, www.labanquepostale.fr,
www.colissimo.fr) and accumulated more than
13.64 million unique visitors for December 2014.
www.laposte.fr, the brand’s natural website point of
entry, is the store front for La Poste’s products and
services on the Internet and La Poste’s front door to
the web: structured according to visitor proﬁles (private
individuals, businesses, professionals, e-retailers,
collectors), the site presents all offers, recommends
the Group’s solutions and facilitates access via
e-stores. A new version of the site was launched in
July 2014: the structure and design of the site and its
mobile applications were totally revamped to improve
customer pathways, to facilitate navigation for Internet
users and to develop online sales and customer
satisfaction, regardless of the Internet channel chosen
by the customer. Designed in a user-oriented approach,
this new model integrates all of La Poste’s sites and
applications (2), which were all separate before then; in
particular, commercial services have been combined
into a single online store for private individuals and
professional customers. The www.laposte.fr website
also has direct links to www.labanquepostale.fr, whose
“Private Individuals” area was also revamped (3).
(1) A Group Big Data offering launched in 2014, presented in Section 5.5.4.1.
(2) Sites already integrated into laposte.fr in December 2014: the Mail online store, the online store for Stamps, the online mail store for the professional
customer market, Montimbramoi, IDtimbre, Laposte.net, Digiposte, or integrated in 2015: Colissimo, Cityssimo, monespaceclient digital identity.
(3) The new online experience for La Poste products and services was revamped in November 2014, with a major overhaul of the online store: the integration
of stamp-collecting products, and in January 2015, user accounts.
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Overview of business activities
Digital Services
f mobile Internet (i.e. on cell phones, smartphones
and tablets) is the multichannel pathway to provide
customers and French people with Le Groupe La Poste’s
services, wherever they are, whenever they need it. The
Group’s applications available on smartphones and
tablets allow users to research post ofﬁces, prices or
consult their La Banque Postale account. The La Poste
application, which has been available on mobile
and tablet since July 2014, was downloaded more
than 46,000 times between July and December 2014
(excluding updates), i.e. an 86% increase compared to
the same period the previous year;
f ﬁnally, social networks highlight Le Groupe La Poste’s
service-oriented attitude and customer-centric
culture on a daily basis. The Group monitors online
opinions (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 (for example,
tracking postal items on a Facebook or Twitter account)
and engage with customers (option to speak to customer
advisors and informational meetings for professional
customers on Viadeo and LinkedIn). In December 2014,
the Facebook page had more than 128,115 fans (1) and
the @lisalaposte and @groupelaposte Twitter accounts
had 25,651 followers. The Group’s position is to prioritise
quality interactions.
The Group’s online offers
To simplify French people’s lives, the Group already offers
a complete range of physical, totally digital or hybrid
products and a wide range of digital services, available on
its websites, on mobile sites (tablet and phablet) and on
mobile applications:
f the Group’s traditional offers are available online:
− online mail offers (electronic registered letter (2),
online registered mail (3), online mail (4), postage,
online shipping and tracking, etc.), creating and
printing personalised stamps (MonTimbrenLigne,
MonTimbraMoi), mail forwarding services, etc.,
− o n l i n e p a rc e l s e r v i c e s ( w w w. c o l i s s i m o . f r,
www.chronopost.fr, Cityssimo, etc.): online postage,
parcel tracking, redelivery notification, requests to
ship parcels from your letterbox (in certain cities), etc.,
(1)
(2)
(3)
(4)
5
− La Banque Postale products and services: opening
an account, online quotes and subscriptions, account
access, virtual branch (La Banque Postale Chez Soi),
− online subscriptions to La Poste Mobile offerings.
In 2014, La Poste’s online store achieved more than
€132 million in revenue.
In addition to commercial services, La Poste also offers
information on its postal and banking products and
services as well as practical services (tracking, prices,
geolocation of public outlets, etc.);
f in 1999, La Poste created an electronic messaging
service, www.laposte.net, in an effort to offer a free,
lasting email address that is independent from Internet
access providers, to as many people as possible. With
more than 3.7 million active accounts on average in 2014,
www.laposte.net is currently the 4th largest webmail
provider in France and the 2nd largest French webmail
provider.
With 100% of its data hosted in France, and with the
integration of the Digiposte digital secure safebox, this
service is in keeping with La Poste’s commitments,
which places trust at the heart of both its physical and
its digital solutions.
In April 2014, a new version of www.laposte.net was
launched with enhanced functionality as well as a
totally revised interface and user experience, optimising
navigation for both the web and mobile environment (on
smartphone and tablet).
5.5.3.2 Secure and digitised solutions
Le Groupe La Poste has a very trusted name among French
people. In fact, its service activities are a key component of
everyday society. To leverage this advantage and transpose
its role as a trusted third-party in the digital universe, the
Group is exploiting and developing a range of models to
ensure the reliability/security of digital exchanges and data
for companies and administrations (digitisation, regulated
information exchanges, etc.), as well as for private
individuals (secure vaults, digital identity, webmail).
Excluding fans of La Banque Postale.
Electronic Registered Mail.
Online Registered Mail.
Online Mail.
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Overview of business activities
Digital Services
Offers to companies (BtoB) and administrations
(BtoA)
BtoB and BtoA services are particularly offered through
Docapost products and services, whose range of solutions
currently include:
f solutions for securing and digitising flows and
exchanges, including e-contracting (Contralia),
e-debiting and e-transfers (Sepalia);
f solutions for digitising processes, such as claims
management, subscriptions (notably through Docapost
BPO);
f management of human resources files by building a
virtual HRD ofﬁce;
f secure information exchange platforms for specialised
business activities (www.infogreffe, www.jedeclare.com),
or special events such as online voting or electronic
contracts.
For example, in terms of business process management
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 (list of all medications issued
over the past four months for each patient, if the patient
so desires). 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.
authority created in 2000 and recognised by the
French government. It issues two forms of electronic
certificates: certificates for individuals and server
certificates and 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;
f the Digital Identity Department helps retail customers
perform their online tasks. This service, launched in
October 2012, guarantees online identity for several
applications, such as, for example, on e-commerce or
exchanges between private individuals on websites.
45,000 private individuals have subscribed to the service
since its launch. Users’ digital identities are veriﬁed face
to face by the postmen.
5.5.3.3 Multichannel relationship
marketing solutions
With Mediapost Communication, Le Groupe La Poste is
adapting to the transformation in customer relations and to
new market demands (mastering social interaction media
and data processing). Its business activities and expertise
in online media, customer knowledge, software solutions
and advice on activating communication channels offers
its customers, the “advertisers”, multichannel relationship
marketing solutions to increase their marketing efﬁciency
and improve consumer satisfaction.
Offers to private individuals (BtoC)
An online advertising business offering
Le Groupe La Poste offers various services from trusted
third parties to private individuals, in particular via:
Through its online advertising business, Mediapost
Communication monetises audiences from measurable
points of contact. The advertising agency records 25 million
unique visitors per month via 700 websites and proprietary
publishing sites such as annuaire.com, société.com and
dirigeants.com, thus offering advertisers numerous
solutions for web trafﬁc development and visibility.
f Digiposte, its secure, electronic archiving solution. As
Le Groupe La Poste’s electronic vault, Digiposte offers
solutions for receiving, archiving and sharing electronic
documents (payslips, invoices, etc.). Today, Digiposte has
more than 260 major account customers who distribute
documents electronically to their customers or staff and
nearly 30 partners/resellers. With 1.38 million vaults
opened, Digiposte is the French leader in this domain.
The www.laposte.net email also integrates a functionality
for storing mails and attachments directly in Digiposte;
f the Digishoot application, a time-stamped gps-based
service for taking pictures with smartphones, developed
through synergies with Digiposte (photos taken using the
Digishoot application are stored directly in Digiposte);
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f Certinomis, a Docapost subsidiary, is a certification
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In 2014, the agency created its own private and premium
market place, “The Place to Bid”, with 70 well-known
brands, 21 million unique visitors and three billion prints.
In November 2014, two new target solutions were launched
to increase visits to the promotional sites of mass market
and large retailers brand names.
Overview of business activities
Digital Services
5
Targeting offerings
Media Data Live, an innovative offer for Big Data
The data expertise associated with knowing customers and
potential customers enables advertisers to obtain finetuned and thus high-quality targeting.
Big data solutions are expected to revolutionise
interpersonal relationships. By combining all of its
expertise, during the second half of 2014, Le Groupe
La Poste developed and launched Media Data Live, an
offer which combines online and ofﬂine data to interpret
the behaviour of targeted advertisements in real time on
display, email, ﬁxed telephone, mobile phone and mail.
With currently tens of millions of BtoB and BtoC email
addresses, telephone numbers (landlines and mobile)
and more than 30 million BtoC postal addresses, the
Digital Services business unit offers several options to
advertisers in terms of both targeted outreach and loyaltybuilding: marketing database management, data quality
processing, and tools and services which drive personalised
multichannel communication campaigns.
Multimedia relationship marketing solutions
La Poste markets all of the media and solutions available
within Le Groupe La Poste (SMS, email, addressed mail,
admail, coupons and money refund offers, Internet
banners, etc.) to advertisers, advertising agencies and
communications agencies via its Home media advertising
business.
E-commerce expertise is also offered to brands and
companies so that they can develop their e-commerce
business.
When an Internet user visits the advertiser’s website,
the “retargeting” identiﬁes his or her behaviour, studies
it and categorises it according to potential. He or she
is retargeted if necessary, then resollicited through an
adapted multichannel communication plan. The offer also
recruits new targets by observing their web navigation more
comprehensively to understand their areas of interest and
life events – such as work projects or wedding preparations
– in order to enable the best communication campaign.
This offer was designed in compliance with
regulations pertaining to personal data and the CNIL’s
recommendations, which require individual consent in
terms of online tracing. Personal data management
was also developed to enable consumers to define the
manner in which they choose (or not) to be solicited
(vrm.mediapostcommunication.net).
Media Data Live provides advertisers with a return on
investment and consumer satisfaction.
5.5.4
Strategy and outlook
La Poste’s strategy is focused around six development
priorities and three transformation levers:
f priority 1: d evelop La Poste’s market share in the
corporate digital transformation segment;
f priority 2: offer a simple and efﬁcient online customer
experience that converges with other postal outlets;
f priority 5: develop expertise in the Big Data market;
f priority 6: develop knowledge of individual customers.
These development priorities are underpinned by three
transformational lines of action:
f industrial innovation;
f priority 3: be society’s trusted digital services operator;
f developing Le Groupe La Poste’s digital DNA;
f priority 4: develop new business activities: cloud-based
f making La Poste an innovative digital brand.
service platforms;
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5
Overview of business activities
Digital Services
5.5.4.1 Development priorities
Developing the digital transformation of private
corporations and public institutions
In an environment where digital tools and innovation
are central to modernising private corporations and
public institutions, Le Groupe La Poste aims to become
an indispensable player in digital transformation for
corporations and public institutions from now until 2020,
thanks to the Digital Services business unit, by:
f providing services and solutions to digitise the business
activities, support services, and the production and
management processes for anywhere from small
businesses to large organisations;
f giving them tools to improve their customer relations.
This involves, in particular, offering advertisers
(customers) solutions to sell more by reaching out to
consumers more accurately with the best media at the
best time.
In order to do this, the Digital Services business unit’s
short-term priorities will be:
f to accelerate Docapost’s marketing of complete
ranges of HR management and financial services
digitisation solutions (marketing the “HRD virtual
ofﬁce”, development of digitisation activities with public
institutions and establishments); etc.
f to develop advertisers’ marketing effectiveness by
enhancing customer relations (more services on
Annuaire.com, marketing of the online and offline
retargeting Media Data Live platform, etc.).
Developing L@Poste online
In 2014, La Poste launched a major transformation and
modernisation project for its digital ecosystem. This
project will be gradually rolled out until the end of the ﬁrst
half of 2015. This project to simplify the customer online
experience and to develop online commercial services has
resulted in the launch of a new version of www.laposte.net
and www.laposte.fr (see the previous sections) and will
continue through the creation of unique customer accounts
in January 2015 as well as the integration of commercial
services at L@Poste on line, which is planned for June 2015.
Eventually, it will help develop a mobile online commercial
offering, with the other business units.
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Led by the Digital Services business unit and carried out
in collaboration with all of the Group’s business unit s,
this overhaul meets a triple objective: simplify the online
customer experience, increase online sales threefold from
now to 2020 and develop qualiﬁed contacts for sales forces.
In 2020, Le Groupe La Poste will offer its customers and
potential customers:
f a uniﬁed and attractive online presence;
f diversified physical and digital retail outlets (omni-
channel);
f a “seamless”, ﬂuid and efﬁcient customer pathway.
Become society’s trusted digital services operator
Needs related to digital trust are developing with the growth
of online exchanges, accompanied by an increasing need
for personal data protections. The continuing development
of digital applications will depend on user conﬁdence and a
simpliﬁcation in security methods.
In this framework, La Poste has given itself an objective
to create a “digital kit” for the public. This “basic” digital
offering consists of services from Digiposte, Digital Identity
and www.laposte.net.
In 2020, Le Groupe La Poste aims to be France’s trusted
digital services operator. Thanks to the Digital Services
business unit , the Group will continue to transfer and
elevate the trustworthy image that the Group enjoys in the
physical world to the digital world. The business unit will
grow its range of document security and authentication
procedure solutions, which is a public interest mission
that covers the needs of both private individuals and
corporations and the public authorities’ aspirations.
In the digital services domain, this consists of guaranteeing
security standards which are at least as high as those to
which La Poste adheres in its physical exchanges. More
speciﬁcally, in the short-term, this will result in:
f the marketing of an enhanced Digiposte “collector”
offering – the name for the tool which automatically
collects, archives and categorises official and
commercial documents in a secure vault;
f f u r t h e r st ra t e g i c d i s c u ss i o n s co n ce r n i n g t h e
technological and marketing dimensions of digital
identity.
Overview of business activities
Digital Services
Developing service and solution platforms,
speciﬁcally for SMEs and micro-businesses
In 2020, Le Groupe La Poste intends to be one of the largest
suppliers of digitised exchange platforms for goods and
services, thanks to the Digital Services business unit. These
digitised structures link together companies who offer
products and services (from Le Groupe La Poste or not)
and their consumers, ﬁnal or not. Recording transmitted
data through platforms enables to collect data and develop
new offers.
In order to achieve this, the Digital Services business
unit’s short-term priorities are to launch a platform for
professional customers (SMEs and micro-businesses) and
to develop its “La Poste Digital Hub” offering (insurance,
connected household, PostAccess, etc.).
Making Big Data a Group growth driver
With the explosion of data produced online and the related
possibilities for its use through Big Data (1) technologies,
all companies (and not only those originating directly from
Big Data such as Google) are transforming the use 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 for data and
its monetisation.
La Poste’s goal is to exploit possibilities from leveraging
and using data for:
f 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 items pending collection;
f enhancing the value proposition of the Group in
connection with existing business activities.
5
Le Groupe La Poste is positioned in the area of data
marketing with Mediapost Communication. Using Big
Data is an integral part of the growth drivers for this
business activity. The objective is therefore to combine
this offering with other solutions offered by the Group,
so as to provide advertisers with a coherent range of
products and services (customer knowledge, prospecting
and loyalty-building solutions);
f conducting forward-looking initiatives to develop new
services as well as develop new growth drivers.
A participant in the French government’s Open Data
movement since 2012, La Poste responded as a
company delivering public service missions and made
data pertaining to its service locations available. It has
already made available its data pertaining to the post
office network (as open access on www.data.gouv.fr),
So Colissimo pick-up areas and Cityssimo automated
lockers. In November 2014, La Poste made a new
postal dataset available: the ofﬁcial national postal code
database. This movement falls under the continued
partnership signed on 14 November 2014 between IGN
(National Geographic Institute), La Poste, Etalab and
OpenStreetMap to build a national address database.
The postal code database is a key infrastructure for
the economy, society and the public service. This opens
up the possibility to develop new geographic services
and applications useful to citizens, companies and
administrations.
Reafﬁrming its commitment in the Open Data dynamic is
important on several fronts. In particular, for Le Groupe
La Poste, it means:
− contributing to the new dynamics of Open Data, which,
after being encouraged to make a massive amount
of data available in the name of transparency, makes
value creation and supporting economic strength a big
development priority,
− making Open Data a lever of change for the Company
by considering Open Data as a service innovation
process in its own right and as a new way of using
and leveraging data; new local services using this
data may also be introduced with the assistance of
partners.
The goal is for the Digital Services business unit to help
the Group be a leader in the collection, processing and
production of mass data by 2020, as part of the trustworthy
relationship the company has with users and customers.
(1) 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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5
Overview of business activities
Digital Services
Unifying and developing knowledge of individual
customers
In an environment where knowledge of individual customers
is a key component of technological and commercial
development, Le Groupe La Poste has begun developing
a high-priority shared project (PPC) with cross-functional
interest aiming to converge the Group’s various individual
customer databases.
5.5.4.2 Levers of internal change
The objectives of this lever are as follows:
f develop digital cultures and practices;
In order to support these changes, La Poste is taking
actions to raise awareness among its employees in
order to allow them to better understand digital trends,
and above all, take full advantage of the resulting
opportunities and transformations: a day devoted to
“digital culture and practices”, simple modules providing
an introduction to digital knowledge and practices
for Network counter clerks, the Lab Postal from
December 2014 which partly focused on the internal
transformation programme;
f develop collaborative approaches and tools;
Making La Poste a player in industrial innovation
In an environment where innovation – digital or otherwise
– is a fundamental component of not only growth, but also
corporate sustainability, the Digital Services business unit
has received, under the “La Poste 2020: Conquering the
Future” strategic plan, a mission to lead La Poste’s various
innovation structures and programmes, and in particular:
f the subsidiary Start’in Post, a start-up incubator since
May 2014 (see Chapter 5, Section 5.5.2), which aims
to help develop revenue in the operational entities by
making equity investments in promising start-up s .
Through an application selection process, La Poste aims
to conduct 24 business tests, then make them a reality
as viable start-ups;
f the Aboukir project will combine La Poste’s digital
environment with the Corporate Garage model developed
by several large groups, which involves combining the
critical mass of large groups and the agility of start-ups
to develop new products.
Developing Le Groupe La Poste’s digital DNA
Digital technology impacts all dimensions of a company:
strategy, organisation, 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 has been developed around three
flagship projects: the construction of a corporate social
network called TREDUNION, the roll-out of a multiyear
programme to raise awareness, train and specialise digital
service jobs and the creation of a collaborative digital
workstation.
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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:
− in 2012, La Banque Postale 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,
− 3,000 employees are already trying out the work online
through the corporate social network TREDUNION.
50% of the groups created on this corporate social
network are dedicated to supporting an operating
activity. Starting in 2015, the test phase for
TREDUNION will be expanded to 25,000 employees;
f facilitate the emergence of new ways of working.
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 2014, 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 5.1.3.6),
the Group is equipping Mail operational staff with
mobile terminals.
− eventually, between 2016 and 2020, a unified
collaborative workstation, including a message centre,
office software, archiving applications, etc. will be
implemented for all Group employees.
5
Overview of business activities
Real Estate
Making La Poste a leading digital brand
Le Groupe La Poste must adopt a strong digital positioning
supported by an ambitious visibility programme. Certain
actions already initiated were strengthened in 2014 while
others are in the pipeline to support the Group’s digital
activity. The main drivers are:
f ofﬂine 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 Group 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 built
a partnership which created a strong presence at the “Le
Web” event in December 2014; social media presence
was recognised by specialised media in 2014, notably in
the area of community management;
5.6
f 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.).
Le Groupe La Poste’s role in French Tech (coordinating
applicants from the digital services industry in the area
of labels, granting locations to start-ups, skills-based
sponsorship, etc.) are examples of this;
f 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 2015.
Real Estate
2014/2013 change
2014
2013
amount
843
854
-11
-1.3%
11
9
+2
+23.8%
Intercompany revenue
832
846
-13
-1.6%
(a)
60
130
-71
-54.3%
(€ million)
Revenue
External revenue
OPERATING PROFIT
%
(a) Operating proﬁt/(loss) after share of net proﬁt of companies under joint control (application of IFRS 10 and IFRS 11 as at 1 January 2014. A pro forma
income statement was created as at 1 January 2013).
The decrease in operating proﬁt after joint control is primarily due to the decline in gains on disposals (see Chapter 10, Section 10.3.7.1).
5.6.1
Introduction
Real estate is a strategic division for Le Groupe La Poste
and is key to the challenges associated with:
5.6.1.1 A very large property portfolio
f the development of the business unit s’ industrial
Distributed throughout France, Le Groupe La Poste’s
real estate portfolio is one of the largest in France. 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 — of a public postal services outlet).
facilities;
f customer reception;
f local coverage;
f employee working conditions;
f the Group’s efforts with respect to responsible
development;
f economic and ﬁnancial performance.
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5
Overview of business activities
Real Estate
Completely atypical, it includes widely diversiﬁed assets in
terms of size, type and usage. It consists of large industrial
platforms, small and medium retail spaces and commercial
premises. To illustrate, the smallest asset (the Eiffel Tower
post ofﬁce) has an area of 9 sqm, and the largest, such as
the Industrial Mail Platform (PIC) in Wissous or the Louvre
post ofﬁce, are as large as 39,000 sqm.
5.6.1.2 The Real Estate Division
The real estate division, which has around 1,000 employees
imbued with a dual real estate and postal service culture, is
determinedly positioned as a partner for the Group’s growth
momentum. It is made up of:
f Le Groupe La Poste’s Real Estate Department, which
The Group’s real estate assets have unusual characteristics
in terms of size. Its 6.8 million square metres, 59.5% of
which is directly owned, correspond to 23,000 leases
managed.
L a s t ly, t h e s p e c i f i c f e a t u re o f t h i s co m p le x o f
11,662 buildings resides in the number of people who come
through its doors every year: in 2014, 85% of the French
population stated that they had visited their post ofﬁce at
least once to carry out postal or banking transactions.
Beyond these aspects, the real estate assets of the Group
represent considerable ﬁnancial stakes. In fact, real estate
accounts for a substantial amount of operating expenses
(rent and rental charges), as well as the largest ﬁxed-asset
item on the Group’s balance sheet, valued at €4 billion in
the Group’s 2014 accounts.
sets out and oversees the Group’s real estate policy;
f Poste Immo, a wholly-owned subsidiary of the Group,
which implements the Group’s real estate policy and
takes on the responsibility of property ownership. Poste
Immo was founded in 2005 to turn real estate into a
value creation tool for the Company and to underpin
the performance of the business units. It performs its
business for the Group’s business units 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, as a service
provider and as a real estate developer, Poste Immo
develops real estate operations and supports the Group
business units in their real estate discussions. With its
12 regional departments, Poste Immo is active across
the country, working as closely as possible with the
Group business units, elected ofﬁcials and stakeholders.
In 2014, Poste Immo and the Real Estate Department
renewed their ISO 9001-2008 certiﬁcation for all of their
services and business activities.
5.6.2
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. The cash generated by disposals
and the surplus internal cash have enabled the Group to
ﬁnance construction works amounting to over €3.2 billion
since 2005. Poste Immo has facilitated the process of
reclaiming space for the business unit s, accelerating
work devoted to optimising areas and contributing to real
estate cost controls for business units, while ensuring the
transparency of actual costs. Optimising space occupied
by the business units launched in 2009 made it possible
to reclaim 1,126,000 sqm and generated recurrent annual
savings for rent and property charges for the Group.
by pursuing joint-development initiatives, by becoming a key
provider in urban logistics services or by offering project
development and property portfolio management services
to new customers.
In order to overcome challenges relating to performance
and service, innovation and openness, to conﬁrm its position
as the key real estate partner for Le Groupe La Poste and
its business units, Poste Immo has deﬁned ﬁve strategic
focus areas:
f strengthening operating performances for improved
customer service;
f actively participating in the forward momentum of
Le Groupe La Poste and its business units;
f fuelling growth by innovation and leveraging its
strengths;
In an particularly difficult environment for the Group’s
different business units, Poste Immo must, on the one hand,
continue to support them in new challenges: quality of
service, reducing costs, network changes, new markets, and
on the other hand, also ﬁnd external growth opportunities,
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f making commitments in favour of responsible
development and workplace quality of life;
f enhancing practices and developing cooperation and
trust between employees, customers and stakeholders.
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Real Estate
Embedded in the Group’s strategy in order to anticipate the
business units’ future needs, Poste Immo’s strategy has
its challenges boosted by three of the Group’s high-priority
shared projects – energy transition, urban logistics and
modernising public action.
To implement this strategy, to make real estate simpler
for its customers and to deliver support and services to
the business units at the highest market standards, Poste
Immo is positioning itself as the entity that manages the
Group’s real estate assets, as well as a service provider and
real estate co-developer.
5.6.2.1 Challenges as the Group’s entity
responsible for managing the Group’s real
estate assets
Managing the Group’s real estate assets meets the Group
and its business unit s’ real estate needs in order to
support their strategy. It manages and enhances the value
of the directly-owned real estate portfolios and ensures
investment returns in line with market expectations. Since
2005, Poste Immo has reduced the size of Le Groupe
La Poste’s portfolio of directly-owned properties by 20%,
supported its modernisation strategy and helped update the
portfolio in line with new uses. In 2014, €231 million worth
of investments were made in the portfolio and 201 asset
disposals were signed.
Poste Immo is also securing strategic locations for Le
Groupe La Poste, building a future high-performance real
estate network and readying itself to build an urban logistics
offering in France’s major cities. Since 2014, the first
“Pickup Station” automated lockers for parcel pick-up and
drop-off have been installed in post ofﬁces in Paris, Lyon
and Bordeaux in order to develop a delivery method that is
adapted to the expectations of consumers and e-retailers
and adapted to the complexity involved in delivering items
in urban hotspots (1). Post ofﬁces in urban hotspots have
a real advantage, both in terms of location and also in
terms of harnessing inﬂuxes of people, and are therefore
an attractive target for installing lockers for parcels. From
now until 2016, approximately 450 lockers will be installed
in the post ofﬁces located in major cities.
Considering the challenges pertaining to cities and regions
changing, Poste Immo assists the Group with its future
real estate locations and is readying itself to create a real
estate offering for urban logistics. Poste Immo is an active
contributor in the “Urban logistics and metropolises”
high-priority shared project. This structural project must,
in particular, enable Le Groupe La Poste to define a
strong, cross-functional vision of its real estate needs and
priorities. For Poste Immo, operator, real estate service
5
provider and owner of Le Groupe La Poste assets, much is
at stake. Identifying strategic assets downtown that could
accommodate logistics activities and launching a trial
period will enable Poste Immo to offer concrete and new
real estate solutions to Group entities and potential external
customers.
5.6.2.2 Challenges as a service provider
Poste Immo is responsible for advising the business units
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 units 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.
Despite annual rent index-linking according to benchmark
indices, for the ﬁrst time in 2014, the amount of the Group’s
rent declined. Given the challenges pertaining to cities
and regions changing, the Group has tasked Poste Immo
with getting involved in discussions with economic players
regarding future locations. In 2014, a pilot project was led
in Aquitane to help the Services-Mail-Parcels business unit
adapt the portfolio to its new industrial needs by limiting
the Group’s costs. Other pilot projects were carried out in
2014, notably on the layout and location of post ofﬁces in
Lyon and Le Havre and on urban logistics in several cities.
The Group intends to roll out these projects throughout the
entire country in 2015.
Poste Immo is also testing out changing its portfolio of post
ofﬁce buildings in order to adapt to the Group’s structural
changes, while also optimising surface area, inter-business
unit synergies and working on quality of life at work.
Poste Immo is responsible for property management.
It 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. In 2014, after analysing all of the rent
from the portfolio of directly-owned properties, those
presenting a gap with market rents in one way or another
were adjusted. This process enabled the business units to
make economic decisions in line with the real estate market
in favour of on-site occupancy or relocation. Managing the
operation also guarantees owners a multiannual major
repairs programme and guarantees tenants the use of
the leased surface areas in line with their needs. In 2014,
the continuous attention to maintaining the value of the
assets led to 2,403 technical upkeep and maintenance
operations being carried out. It provides users with advice
on performance and energy optimisation. As a pioneer,
(1) Downtown areas in large metropolitan areas.
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Overview of business activities
Real Estate
via the signing of five “green off-plan leases (1)” 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 nearly 190 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-àvis lessors. Poste Immo has in this way taken the initiative
of proposing them model green leases. Every year, a Green
Lease Committee meeting is held in all of the buildings
involved with the environmental appendix so that tenants
and owners can discuss the building’s energy performance.
Three indicators are regularly monitored to keep abreast
of changes in a building’s energy performance: energy
consumption (electricity, gas, etc.), water consumption and
waste production. Based on this assessment, tenants and
owners commit to an action plan aiming to improve the
building and rented locations’ energy and environmental
performance. These actions pertain in particular to raising
occupants’ awareness of eco-friendly practices, optimising
the building’s equipment functioning and the matter of
replacing and improving certain machines or equipment in
the building.
The Louvre post ofﬁce renovation project, the restructuring
of which was entrusted to the Dominique Perrault
Architecture (DPA) group, is an example of Poste Immo’s
real estate development activities. The renovation of this
emblematic building that Poste Immo manages for the
Group will not only modernise the already existing postal
business activities, but will also accommodate public
services, ofﬁces, social housing and a hotel. The building
permit was obtained in November 2013. The partner chosen
to create the hotel and its operation is a group consisting of
the Elegancia Hotels, GLT-KONG and Novaxia, which were
named in May 2014.
Real estate project development operations (residential,
office, commercial) have begun in order to add value to
La Poste’s real estate assets to be disposed of or vacant. The
ﬁrst projects pertaining to very important buildings (such
as Issy-les-Moulineaux and École militaire in Paris) and led
by specialised partners were delivered in 2014. The Zenora
building in Issy-les-Moulineaux received the Pyramide de
Vermeil, which is considered the National Grand Prize for
corporate real estate, and the Gold Pyramid awarded by the
French Federation of Real Estate Developers. This building,
which has remarkable environmental capabilities, is also an
illustration of the Group’s policy to convert postal brownﬁeld
sites, which present challenges in terms of value for the
company as well as economic and social challenges for city
construction.
In the regions, equity investments were made in companies
whose purpose is the renovation or construction of real
estate developments in Lyon, Rennes and Fort-de-France,
in preparation for their resale.
5.6.2.3 Challenges as a co-developer
This activity embodies the industrial and commercial
strategies of the Group’s business units and enhances the
value of the directly-owned real estate portfolios 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. 2014 was characterised by the delivery
of 1,760 operations, and 89% of directly-owned public
access buildings are now accessible to people with reduced
mobility.
(1) BEFA: “Bail en l’Etat Futur d’Achèvement” (off-plan lease agreement).
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5.6.2.4 Challenges pertaining
to sustainable development
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
Overview of business activities
Regulations
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 an
Energy Efficiency Charter for public and private office
buildings, and in May 2014, made a commitment to improve
the energy performance of its directly-owned properties
with more than 5,000 sqm by 25% by 2020. Poste Immo
has actively undertaken to adopt a proactive approach to
the energy performance of its real estate portfolio and
5.7
5
has reafﬁrmed its commitment to remain a key player in
this area. Furthermore, since May 2012, 45 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 and is
developing active responsible procurement policies in the
areas of sustainable development and energy management.
Bolstered by its achievements within the Group, Poste Immo
is striving to gradually enter the external market by offering
service provisions (portfolio management and property
development management) and new energy efficiency
renovations offerings.
Regulations
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.
5.7.1
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.
Regulation of Le Groupe La Poste’s business activities
From a regulatory perspective, Le Groupe La Poste’s
business activities fall into the following main categories:
f postal business (mail/parcels), the Group’s traditional
business activities;
f express-related activities (express parcel business)
through GeoPost subsidiaries;
f banking activities, via its La Banque Postale subsidiary;
f since 2011, mobile telephone activities through La Poste
Telecom.
5.7.1.1 Related postal business
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 Chapter 5, Section 5.7.2.1).
The transposition into French law of these European
Directives was:
f by French Act No. 2005-516 of 20 May 2005 on the
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
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);
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Overview of business activities
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f via Act No. 2010-123 of 9 February 2010 regarding the
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.
The granting of the licence requires an express decision
by ARCEP.
La Poste holds a licence covering:
f items of correspondence including delivery;
f postage of outward cross-border items of
correspondence.
5.7.1.1.1 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 2 kg 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.
5.7.1.1.2 The system of prior authorisations
The postage of items of correspondence is a regulated
business activity subject to prior receipt from ARCEP of an
operating licence. Up to 31 December 2010, this licence,
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 licence 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 authorisations as well as applicable
obligations for authorised service providers are deﬁned in
decree No. 2006-507 dated 3 May 2006. The request for
authorisation 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 licence 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.
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This licence was issued for 10 years pursuant to ARCEP
Decision No. 06-1091 dated 26 October 2006.
In addition, the Act of 20 May 2005 designated La Poste as
the service provider responsible for the Universal Postal
Service. The 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 Chapter 5, Section 5.7.2.1 et seq.).
5.7.1.1.3 Rights and obligations relating
to the licence
La Poste, like all postal service providers licensed to provide
postage services for items of correspondence, is required
to fulﬁl a series of obligations relating to:
f guaranteeing the safety of users, staff and facilities;
f g u a r a n t e e i n g t h e co n f i d e n t i a l i t y o f i t e m s o f
correspondence and the integrity of their contents;
f providing user access to a simple, transparent and free
claims procedure;
f ensuring data and privacy protection;
f 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 Ministerial Decree of 3 May
2006.
All these obligations were supplemented by the Act of
9 February 2010. Now, any postal service provider holding
an authorisation must also:
f guarantee the neutrality of the postal services with
regard to the identity of the sender and the nature of the
postal items;
f 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;
Overview of business activities
Regulations
f 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;
f respect public order and national defence 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.
5.7.1.1.4 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 nondiscriminatory 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 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:
f the postcode index matching these codes to geographic
details such as streets and addresses;
f the information collected by La Poste with respect to
changes of address;
f a forwarding service in the event of a change in the
recipient’s address;
f 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
5.7.1.1.5 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 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:
f for ordinary items, a sum equal to twice the postage
price;
f 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;
f 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;
f 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 has not been delivered to its recipient should
be considered lost (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.
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5.7.1.1.6 Reporting requirements
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:
f ensure that all sector stakeholders and consumers are
kept informed by publishing aggregate indicators on the
main postal sector segments;
f provide the necessary data for public policy reviews
and in particular ARCEP’s work with respect to the
implementation of applicable regulation;
f assess the effect of its decisions on the market as a
whole.
These surveys are published on ARCEP’s website as part of
the Annual Observatory of Postal Business.
5.7.1.1.7 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
Chapter 5, Section 5.7.1.1.4), 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 recognised user group, an affected
individual or legal entity, Universal Postal Service provider
or licence holder, decide to hand down penalties against a
Universal Service provider or a licence holder. ARCEP may
only hand down penalties having given the interested party
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Following the unconstitutionality of the previous procedure,
ARCEP’s authority to sanction was modiﬁed by the order of
12 March 2014, which introduces a new sanction procedure
for the postal and electronic communications sectors.
The new provisions of the Postal and Electronic
Communications Code organises the separation of the
prosecution and ruling functions by entrusting them
to distinct members of the Authority’s Board. A party
composed of four members of the Board, including
the Chairman of the Authority, is expected to take on
decisions relating to opening proceedings, orders, settling
disagreements and inquiries, and a party of three other
members of the Board is expected to take on decisions
pertaining to sanctions.
The penalties available to ARCEP are as follows:
f a warning;
f cutting a year off the length of the licence;
f suspending the licence for at most one month;
The ARCEP members designated in the decision are the
only ones authorised to receive and process individual
information collected in the course of this survey.
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f withdrawing the licence;
f 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 recently 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 made
to identify them, ascertain their veracity or penalise them.
Lastly, the sanctions imposed by ARCEP are the subject of
substantiated decision, the concerned party shall be notiﬁed
of them and they may be rendered public in publications,
newspapers or public communications departments
through an electronic means chosen by the restricted party,
in a format and for a duration proportionate to the sanction
imposed. 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.
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Regulations
5.7.1.2 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.
5.7.1.2.1 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 Act of 30 December 1982 on domestic
transport and Decree 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 organises 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 motorised vehicles must possess an
administrative authorisation 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 authorisation and
registration, four conditions must be met: undertakings are
stably and genuinely established, ﬁnancial standing, good
repute and professional ability.
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 authorised 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.
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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.
5.7.1.2.2 Conditions governing the performance
of road transport and freight forwarding activities
The freight road transport company must possess an
EU licence if it engages in transport using vehicles with
a maximum authorised payload above 3.5 tons and a
national transport licence for vehicles under 3.5 tons.
These administrative authorisations are valid for 10 years
and subject to renewal.
A certiﬁed copy of the administrative authorisation 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 loading 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 prepared by the
consolidator forwarding staff member.
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5.7.1.3 Banking activities
5.7.1.4 Mobile telephone services
business activities
La Banque Postale, a wholly-owned subsidiary of La Poste,
is a public limited company with an Executive and
Supervisory Board, authorised 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:
f banking services: bound by CCP and payment services,
overdraft facilities, real estate loans, consumer credit,
corporate loans and loans to local authorities;
f ﬁnancial instruments: investment account management,
investment of financial securities including units or
shares in UCITS, and futures;
f 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 travellers’ cheques.
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: French Prudential Oversight
Authority (ACP) and French Financial Markets Authority
(AMF).
On 14 October 2010, La Poste Telecom declared itself as
an operator with ARCEP 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 authorisation 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:
f conditions governing the consistency, quality and
availability of service;
f conditions of conﬁdentiality and neutrality with regard
to the messages transmitted and information related to
communications;
f regulations governing health and environmental
protection;
f free routing of emergency calls;
f funding of Universal Electronic Communications Service.
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5.7.2
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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:
f the Universal Postal Service;
f the contribution, through its network of public outlets, to
regional planning and development;
f press transportation and delivery;
f 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.
f 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
I nspectorate of Social Affairs. The purpose of this
initiative is to shed light on the work on the extension of
the mission beyond 2014;
f regional planning mission: the agreement sets out
the guidelines for the “new local postal coverage
agreement”: 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 French Mayors’ Association (Association des
Maires de France), the French government, and La Poste.
f maintaining a broad scope of public service missions
A 2013-2017 Business Contract Monitoring Committee
chaired by Emmanuel Macron, Minister of the Economy,
Industry and Digital Data, met on 31 October 2014 in
the presence of Philippe Wahl, Group executives and
stakeholders such as trade unions, consumer associations,
the postal industry regulator. During this ﬁrst meeting, the
Monitoring Committee mentioned the French government's,
La Poste's and all of the stakeholders’ commitment to
carrying out and ensuring the sustainability of the public
service missions entrusted to Le Groupe La Poste. The high
level of service quality ensured by La Poste in carrying out
its public service missions was noted by all stakeholders.
assigned to La Poste: Universal Postal Service, press
transport and delivery, banking services accessibility and
regional planning;
The public service missions assigned to La Poste are dealt
with in turn in the following sections.
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:
f further reinforcement in the quality of service objectives
(Priority Mail, Registered Letter and Green Mail);
f missions adapted to meet users’ expectations and
technological advances (online letter, range for sending
small items);
f 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.
5.7.2.1 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.
5.7.2.1.1 Legal and regulatory framework
For each of its missions, the concrete implications are as
follows:
f 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;
f mission for press transport and delivery: 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;
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:
f delivery to everyone’s home;
f collection and delivery at least ﬁve times a week;
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f access to post ofﬁces and letterboxes;
f deadlines for national and cross-border shipments;
f 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:
f postal items of up to 2 kg;
f postal packages of up to 10 kg;
f 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
maximise 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.
ARCEP ensures that La Poste meets its Universal Service
obligations and in this regard establishes a multiannual
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:
f single piece items of correspondence with two levels of
priority;
f bulk items of correspondence;
f registered items;
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.
f newspapers and periodicals;
f catalogues and other printed matter;
f postal packages;
f insured items;
f forwarding;
f 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
5.7.2.1.2 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.
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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.
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Regulations
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.
In early January 2015, the Universal Service catalogue
integrating price adjustments and other modiﬁcations was
made public taking into account signiﬁcant changes in mail
and parcels ranges approved by the Minister of the Economy
after several favourable ARCEP opinions (1). In fact, since
1 January 2015, La Poste has offered a new, more ﬂexible
and convenient service offering to send a document or
small merchandise for one ﬂat rate.
Multiannual price caps
Multiannual 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 prices may not
exceed the level of inflation plus one 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.
In accordance with Article L. 5-2-3 of the French Postal and
Electronic Communications Code, following a proposal by
La Poste, ARCEP deﬁned the price caps of offers falling
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under the Universal Service (almost all mail and parcels
offerings for private individuals) for the 2015-2018 period,
in its decision No. 2014-0841 dated 22 July 2014.
In order to address the drastic change in La Poste’s
economic environment related to rapidly declining mail
volumes, the price cap deﬁned by ARCEP caps the average
annual adjustment in Universal Service prices at the level
of inflation plus 3.5%. This system is applicable for four
years, from 2015 to 2018. However, La Poste is allowed to
use 50% of the total budget in the first year to take into
account La Poste’s short-term difﬁculties in adjusting its
expenses to a huge drop in volumes.
The price adjustment granted by ARCEP will partially offset
the impact on operating proﬁt/(loss) from the anticipated
decline in volumes over the period (-6.3% per year on
average). It is La Poste’s responsibility to prioritise growing
its existing and new business activities as well as strictly
adjusting its costs to changing volumes. With this price cap,
La Poste will have the necessary resources to maintain the
Universal Service and continue providing superior quality
of service.
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
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 (decree of 22 October 2014
pertaining to quality of service objectives for 2014 and 2015).
These annual targets, dealing with the speed and reliability
of services, cover the following services:
f Priority Mail: delivery rate in D+1 >85%;
f Registered Mail: two-day delivery rate of 94% in 2014
and 95% in 2015;
(1) Opinion No. 14-0193, No. 14-0659 and No. 14-0683.
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f Green Mail: two-day delivery rate of 94% in 2014 and
95% in 2015;
f EU cross-border mail delivery rate D+3 of 90% and in
D+5 of 97%;
f 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.
Therefore, in April 2014, ARCEP published the results of
the audit conducted in 2013 by the ﬁrm Ernst & Young on
measuring the quality of service of Priority Mail and Green
Mail. The goal of the audit was to assess the compliance of
the system to measure the quality of service of its products
against the system of measurement deﬁned by standard EN
13850. At the end of this audit, Ernst & Young concluded that
the system to measure the quality of service implemented
by La Poste is in compliance with the standard currently
in effect.
In a public communication, ARCEP complimented the
control processes for the Priority mail and Green mail
quality measurement system, stating that these processes
conﬁrmed the reliability of the system and contributed to
its improvement.
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.
method must comply with the principles provided for by
European standard EN 14012. The decree of 22 October
2014 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
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 audited by
La Poste’s Statutory Auditors every year since 2000. Since
2006, ARCEP has carried out an audit, via an independent
organisation that it approves and which La Poste pays for,
in order to verify that the principles it deﬁned are correctly
applied.
Universal Service ﬁnancing
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
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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 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 authorised postal operator.
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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.
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.
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.
At the national level, the La Poste network has over
17,000 public outlets (post ofﬁces, APCs, and Relais Poste
outlets), spread across 14,000 districts. 60% 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.
5.7.2.2 Regional planning mission
5.7.2.2.2 Financing and governance
The French Act of 9 February 2010 reaffirmed the
assignment to La Poste of a regional planning public service
mission.
5.7.2.2.1 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 organisation 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 maximise
economic and social efficiency. La Poste’s partners are
firstly municipalities and groupings of municipalities in
the case of APCs, and secondly shopkeepers, traders,
tobacco retailers in the case of Relais Poste outlets. These
In 2014, 90 departments in Metropolitan France met the
accessibility standard. In the overseas departments, every
district has at least one public outlet, except for French
Guiana (21 out of 22 districts) and Mayotte (15 out of
17 districts).
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”.
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 €251 million for
2013 (decision dated 16 September 2014).
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 to 95%, in
accordance with the French Act of 9 February 2010. The
provisional amount for 2014 was €170 million. It is allocated
to a national postal equalisation territorial compensation
fund for which La Poste must keep separate accounting
and ﬁnancial records. By a ruling dated 26 May 2014, the
European Commission approved this compensation plan
for up to €850 million over the entire 2013-2017 period, as
government assistance compatible with the treaty on the
functioning of the European Union.
(1) Urban/Rural INSEE 2010 + all urban municipalities with fewer than 2,000 inhabitants (2010 census) transferred to rural.
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The local postal coverage agreement signed by the French
government, La Poste and the French Mayors’ Association
(Association des Maires de France), 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 revitalisation areas that they include,
mountain and hill areas, deprived urban areas (ZUS) and
French overseas departments and Territories. To ensure
a true equalisation, 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 APCs, remunerating the Relais
Poste outlets, a departmental programme negotiated
with the Departmental Commission for Regional Post
Ofﬁce Presence (CDPPT), which in particular ﬁnances the
refurbishment of post ofﬁces, a ZUS programme, a French
overseas department programme as well as a programme
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. More than
€900 million was invested in six years: €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. 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 equalisation 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.
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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 equalisation
fund and negotiates projects that fall under the fund
with La Poste, in particular in the programmes for rural,
deprived urban areas 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 2014.
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 equalisation
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 Observatory has 28 members who are appointed for the
duration of the local postal coverage agreement, including
six Representatives from the French Government, six
Representatives from the AMF, six Representatives from
La Poste, six members from the CSSPPCE, two regional
advisors from the CDPPT and two general advisors from
the CDPPT.
The new agreement is characterised by a more signiﬁcant
representation of the CDPPT within the Observatory, which
has seen the scope of its missions broadened: 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 manoeuvre in terms of
managing the equalisation fund, in order to improve access
to postal services, and of the prioritisation 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.
This decentralised system, with dual governance both
nationally and departmentally, allows for ongoing and indepth interaction with, and consultation of, local elected
ofﬁcials.
Overview of business activities
Regulations
5.7.2.3 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.
5.7.2.3.1 Framework of the mission
The press transportation and delivery public service
mission is governed by multiannual agreements between
the French government, La Poste and press industry
unions. The current multiannual 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 optimise, 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 optimise 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 went 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
5
each party are being met and dealing with any difﬁculties
that may arise with regard to the implementation of the
agreement.
5.7.2.3.2 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.
Pursuant to a ruling dated 25 January 2012, the European
Commission approved this compensation plan as
government assistance compatible with the treaty on the
functioning of the European Union and confirmed this
through a ruling dated 26 May 2014 for €597 million over
the entire 2013-2015 period.
France’s 2015 Budget Act nevertheless provided for a
€50 million reduction in compensation budgeted for 2015
for La Poste’s transport and delivery mission in relation to
the amount indicated in the tripartite agreement of 23 July
2008.
The French government’s compensation related to the
moratorium (1) was eliminated in 2014. La Poste only
recovered half of what was eliminated in 2014 from
customers. The remainder will be recovered from 2015
prices. Therefore, in 2014, La Poste incurred a cost of
approximately €15 million without compensation.
As part of the press assistance reform, the G eneral
Inspectorate of Cultural Affairs, the General Inspectorate
of Finance and the General C ouncil for the E conomy,
E nergy I ndustry and Technologies were tasked with
initiating discussions about the complementary nature
of various press distribution methods: postage, delivery
and news stand sales, to be implemented by 2016, when
the Schwartz agreements come to an 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.
(1) The moratorium on regulated press prices, which has run since 2009 and which resulted in delaying the implementation of price increases actually paid
by publishers by a year.
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Overview of business activities
Regulations
5.7.2.4 Banking accessibility mission
5.7.2.4.1 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.
Until 1 January 2009, La Poste, Caisses d’Épargne and,
under specific conditions, Crédit Mutuel, were the only
institutions authorised to offer Livret A passbook savings
accounts. The French Economy Modernisation 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:
f 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;
f the minimum amount for cash withdrawals or deposits
is set at €1.50;
f La Banque Postale is required to authorise, 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.).
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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 Modernisation Act provided
for special remuneration for La Banque Postale.
5.7.2.4.2 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.
The amount of the compensation for the banking
accessibility mission for the period between 2015 and
2020 was determined in a decree issued on
26 February 2015 that provides for a gradual reduction in
the annual contribution. Said annual contribution will be
€235 million in 2015, €225 million in 2016, €210 million
in 2017, €190 million in 2018, €170 million in 2019 and
€150 million in 2020.
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.
Overview of business activities
Social and Environmental Responsibility
5.8
5.8.1
5
Social and Environmental Responsibility
A CSR policy integrated into the Group’s “La Poste 2020:
Conquering the Future” strategy
Since 2003, the Group has shown its continued commitment
to social and environmental responsibility (CSR — Corporate
Social Responsibility) by making it a key component of its
various strategic plans. In 2014, the development of the new
“La Poste 2020: Conquering the Future” strategic plan was
an opportunity to take a further step: co-development with
stakeholders and taking into consideration economic, social
and environmental issues were central to the strategic
approach. The framework of the CSR policy was deﬁned
(see Chapter 5, Section 5.8.1.2).
5.8.1.1 Analysing the signiﬁcance
of CSR issues and priorities
As part of the implementation of its “La Poste 2020:
Conquering the Future” strategy, during the second half
of 2014, La Poste was in the process of pinpointing highpriority CSR issues and ﬁnalising the goals for 2020. To do
this, it relied on the process recommended by the GRI G4
based on the existing document repository.
The ﬁrst step was to update the CSR guidelines prepared
in 2012 with reference to the ISO 26000 standard, which
defines key questions and action areas presenting a
challenge for the Group. Due to the Group’s international
development, these guidelines now include the creation of a
Digital Services business unit in 2014 and new development
services in its action areas and new challenges.
5.8.1.2 The CSR policy
Le Groupe La Poste’s social responsibility is expressed
through an ambition and two commitments.
An ambition
Le Groupe La Poste, a player in delivery and home services,
aims to make it easier for everyone to access all forms of
useful services (1) in order to contribute to the regions’
sustainable development.
Two commitments for 2020
1) An exemplary group in its social and environmental
commitment. This commitment is based on its products
and services, its processes and its relationships with
customers, suppliers and subcontractors. The Group is
striving to develop public interest services that respect
people and the environment;
2) A group that contributes to regional economic
development and local employment. The Group is
working hard to develop new synergies and solidarity
in order to contribute to the development of a more
inventive and responsible local economy.
The completion of these commitments by 2020 requires the
implementation of four implementation levers as well as the
completion of ﬁve projects.
The process to prioritise challenges is continuing in 2015.
This process should result in the Group’s ﬁrst materiality
matrix during the ﬁrst quarter of 2015 and should set goals
for 2020 based on the indicators that represent the highest
priority issues.
(1) Useful services are those which promote access to essential goods. This includes:
• a healthy environment: healthcare, food, hygiene, sports activity, air quality and quality of life;
• accommodation: water, housing, energy;
• social ties: communication, transportation/mobility, culture/hobbies;
• access to their rights: access to banking services, fairness, information, etc.
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5
Overview of business activities
Social and Environmental Responsibility
Four implementation levers
Five projects
These levers, key points of responsible governance, are
conditions for achieving these two commitments. This
especially entails:
The action plan is based on a pragmatic continuous
improvement plan and open innovation (2). It is structured
around ﬁve major projects:
1) management of the Group’s extra-ﬁnancial performance,
with the goal of continually improving results, and the
integration of CSR in all Group projects;
f widespread adoption of more responsible products and
2) identiﬁcation of plans to hedge ﬁnancial and reputational
risks in the event that environmental and social changes
are not adequately adapted;
f employee development (see Chapter 17);
3) continued attention to responsible regional economic
development;
4) co-development with major stakeholders (1) and periodic
progress reports to them.
services: “eco-socio-designed” (3) useful, user-friendly
and accessible products and services;
f manage energy transition and changes in urban logistics
(integrated into two high-priority shared programmes of
the same name, see Chapter 3, Section 3.4);
f promote sustainable regional economic development
initiatives as well as sustainable employment initiatives;
f create solidarities and build innovative solutions
together.
5.8.2
Responsible governance
5.8.2.1 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 Corporate Vice-President 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.
A national CSR Committee unites each of the business
units and the subsidiaries’ main holdings. It is prepared and
organised by the Group CSR Department. This Committee
monitors the roll-out of action plans within the Group, and
incorporates CSR concerns into business practices of the
functional operating segments.
Lastly, at a local level, CSR contacts have been designated
by each of the business units and, when justiﬁed by their
size, the Group subsidiaries. They are supported in their
work by 21 Regional Representatives (4), who coordinate
initiatives between the business units, subsidiaries’ and
local stakeholders’ local operations.
5.8.2.2 Roll-out of the Group’s ethics
programme
The Group’s ethics programme, approved by the Executive
Committee, is based on:
f a Reference Guide to Professional Ethics specifying all
individual and collective rules of conduct. It has been
disseminated to employees. This Reference Guide is
available online on La Poste’s Intranet site (in French
and English), and on Le Groupe La Poste’s institutional
website for external stakeholders;
Each business unit and the largest 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.
(1) The main stakeholders identiﬁed are: staff, consumers and customers, regional elected ofﬁcials, supplier and subcontracting partners, shareholders.
(2) Open innovation is a concept which consists of a company no longer being exclusively based on its own research. A company can create value (services
and products) through collaborations, for example.
(3) It means respecting the environment, human rights and consumer protection.
(4) The Group’s Regional Representatives are the Group representatives in each administrative region; they monitor the regions and serve as a liaison between
the Group and institutional parties in the region.
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Overview of business activities
Social and Environmental Responsibility
f a network of ethics ofﬁcers composed in particular of a
Group compliance ofﬁcer, ﬁve business unit compliance
ofﬁcers and compliance ofﬁcers in the main subsidiaries.
They meet once a quarter, in order to discuss matters
to be addressed, and to co-construct staff awarenessraising tools. Communication tools primarily comprise
a dedicated intranet, a monthly Ethics newsletter (from
news in the ﬁeld), two publications per quarter – Ethics
Practices (an educational tool which covers ﬁve subjects:
whistleblowing, swearing in, professional secrecy, the
ethics climate barometer and the annual report on
“Ethics and Professional Conduct”) and the booklet
containing practical professional case studies (in 2014:
competition, data integrity and swearing in);
f an Ethics Committee chaired by the Group Corporate
Vice-President and composed of Group ethics ofﬁcers.
The Ethics Committee met twice in 2014: at the
beginning of the year to approve the 2014 priorities, and
at the end of the year to review the results of the ethics
survey and the initial annual review;
f a customised 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. Anonymity is guaranteed;
f a survey for measuring sensitivity to ethical issues, and
employees’ level of understanding and endorsement of
corporate ethics (1).
2014 was a year to reinforce and develop the Group’s
ethics programme. This programme enabled the Group
to establish and disseminate a shared ethical culture
in the Group in four years. Results from the third wave
of La Poste’s ethics barometer, conducted by BVA in
October 2014, conﬁrmed this. 74% of employees believed
that a change in ethical behaviour and professional conduct
took place at La Poste over the past two years, and 93% of
employees felt affected by the Group’s actions led on ethics,
up eight points compared to 2013.
An annual report presents the annual Ethics and
Professional Conduct assessment for the Group and
business units. It is presented to the Executive Committee,
to the Ethics Committee and to the “Quality and Sustainable
Development Committee” of the Board of Directors. It was
disseminated to 650 top Group managers for the ﬁrst time
in 2014.
5
In 2014, the Group ethics ofﬁcer implemented an additional
protection (2) for whistleblowers. Trust in the alert system is
an indicator that the Ethics division is closely monitoring
the ethics climate barometer: 75% of employees stated
to have trust in their ethics ofﬁcer for an ethics issue and
94% would be ready to sound an alert if the opportunity
presented itself.
In 2014, the oath for employees was revitalised by
reinstating a mention on ﬁnancial services, which was in
the decree of 1993. It gives employees an opportunity to
claim ownership of the six values of La Poste.
Le Groupe La Poste is active in referent associations, notably
in the Cercle éthique des affaires (CEA) which it serves as
Vice-President, the NGO Transparency International and the
European Association IBE (International Business Ethics).
With regards to ethics in relations with suppliers and
subcontractors, Le Groupe La Poste is a signatory of
the Intercompany Relations Charter governing relations
between major buyers and SMEs, created by the Médiation
du crédit and the Compagnie des dirigeants et acheteurs de
France (Professional Organisation of Company Officers
and Buyers in France – CDAF), including 10 commitments
for responsible purchases. This Charter is included in the
Reference Guide to Ethical Procurement. Furthermore,
suppliers and subcontractors have guarantees that go
beyond the scope of law:
f the possibility to use La Poste’s mediator as a last resort
for an amicable settlement, if they have not succeeded in
settling a dispute with their representatives at La Poste;
f a purchase limit threshold of 20% of revenue, beyond
which the Group believes puts the supplier at risk;
f a process so that any potential disengagement with
suppliers in a position of dependence be anticipated and
managed progressively, when La Poste wants to reopen
the market to competition;
f an urgent two-week payment procedure can be
implemented for a supplier experiencing cash flow
difﬁculties;
f a Procurement Code: the Market Committee reviews
a priori 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.
(1) The questionnaire was developed in conjunction with the Institut de sondage BVA and the Cercle éthique des affaires for internal use and for a panel
of large corporations for comparison purposes.
(2) The Ethics Ofﬁcer contacts the persons having launched a serious alert without compromising their anonymity to verify that they have not been penalised
for their initiative.
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5
Overview of business activities
Social and Environmental Responsibility
5.8.2.3 CSR in collective performance
indicators, roadmaps and decision-making
processes and controls
Responsible development criteria are introduced in the
Group’s management system.
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, which inﬂuences
the amount of their variable portion.
At La Poste, the incentive-based pay, which is distributed to
La Poste employees, speciﬁcally includes a criterion known
as “progress in terms of the accessibility of buildings for
people with reduced mobility at public access buildings
(ERP) in the directly owned portfolio”, and a criterion known
as “total emissions offset via the carbon offset programme”
for companies within La Poste’s consolidation scope, as
well as the average waiting time in the post ofﬁce.
The economic, social and environmental impacts are
analysed when major projects in terms of their amount or
5.8.3
CSR has been included in the Group’s internal control
system and risk management system: a legal CSR
framework has been maintained to date for this purpose,
and the annual self-assessment matrix includes questions
on CSR.
5.8.2.4 Service-oriented attitude
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 unit s. The development of a service culture
has been accompanied by a major training initiative (as
an example, La Banque Postale has trained more than
4,000 employees of the Financial Centers to the “ServiceOriented Attitude”. All of the business units have integrated
the service-oriented attitude in the management of their
business activities at different levels (operational and
commercial).
The ﬁve Group projects
5.8.3.1 A responsible eco-socio-designed
offering that is useful, simple and available
to all
An eco-socio-designed and carbon offset offering
for mail, parcels and express products
Le Groupe La Poste has relied on an eco-design approach,
an approach in which it included respect for human rights
and product and service availability for everyone (ecosocial-design). Environmental, social and societal goals
are thus integrated into the different phases of preparing
new offerings. CSR guidelines are used by the marketing
managers of all the business unit s and are regularly
updated.
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the issues involved are assessed. The key analysis points
are submitted to project managers.
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A few examples of products resulting from this process:
f The services of the Services-Mail-Parcels, Digital
Services and GeoPost business units are fully carbon
neutral for their residual greenhouse gas emissions.
Services targeting consumers are at an affordable price
level. The choice of carbon offset projects includes a
criterion to improve the living conditions of people who
receive them. In 2014, a free and clear ECOVEO logo was
made available to customers, enabling them to value the
carbon neutrality of their shipments.
f Green Mail reduces its carbon footprint by not using
planes in mainland France.
f Colissimo packages use up to 85% recycled cardboard,
they are recyclable and use water-based ink and glue as
well as cornstarch.
Overview of business activities
Social and Environmental Responsibility
f Marianne stamps (common usage) and more precious
stamps use paper from sustainably managed forests
and vegetable-based ink. Pre-paid envelopes are NF
Environment certiﬁed.
f 70% of Chronopost padded envelopes are made in the
5
Customer relations: a multichannel delivery
requirement
Three major focus areas drive customer relations:
simpliﬁcation; personalisation; consideration.
facilities that operate in the social economy sector.
f La Banque Postale appends an ESG (Environment,
Social, Governance) check-list, aimed at guaranteeing
the inclusion of 19 extra-financial criteria covering
design, distribution and customer support, etc., to each
new product file submitted to a review committee. In
its annual “Sustainable Development Observatory”
survey, IFOP states that the French have once again
distinguished La Banque Postale as the leading French
bank in terms of commitment towards sustainable
development, for the sixth consecutive year.
f The Group offers its customers a full range of Socially
Responsible Investment (SRI) funds certified by
Novethic and Finansol. For customers seeking to
boost their assets while encouraging responsible
financing, La Banque Postale launched a range of
LBP EthicEuro funds. Managed by La Banque Postale
Structured Asset Management, these guaranteed or
principal-capital funds under equity savings plans and
life insurance enable customers to benefit from the
potential performance of an index comprising European
companies with ESG performance (environmental, social
and governance) and ethics.
f La Banque Postale also supports solidarity savings.
Thanks to “Solidarity Interest Services”, customers
can repay all or part of their interest from a savings
account (Livret A passbook savings account, Sustainable
Development savings account (LDD) or LEP savings
account) to one of the 11 partner associations that is
a member of the Initiative against banking exclusion,
of which the Bank is a member. It also supports its
customers in their approach to solidarity by matching
the amount of their contribution by 10%.
f Lastly, since the beginning of 2014, Mediapost SAS has
offered its customers the Print Solidaire offering, a
guaranteed carbon neutral solidarity printing offer for
all of its services (paper, printing, energy, transportation
and distribution).
On 17 March 2014, this offering was re warded by
Décisions-Achats magazine (bronze trophy in the ecoresponsible purchasing category).
Quality of advice
Quality and relevance of advice is central to commercial
relationships. For example, for banking services, the quality
of advice and developing long-term relationships are
based on a commercial management system that focuses
on supporting advisors and a compensation system that
includes both qualitative, quantitative, individual and shared
components, in the customer’s interests. As a result, each
advisor works under an annual performance contract and
evaluates his or her progress with his or her manager three
times per year during shared assessment interviews.
Customer commitments
La Poste has implemented an ongoing process of customer
commitments. This policy is reinforced and updated
continuously, it is monitored at the highest Group level. It is
based on the following commitments:
f provide customers with information on its services
annually;
f provide access to information on mail delivery terms and
conditions;
f offer a repeat delivery free of charge for registered
letters at the request of the recipient;
f send an acknowledgement of receipt within 48 hours of
a claim being dropped off with a deadline for providing
a response;
f 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.
In 2014, waiting times in the 1,000 largest post ofﬁces have
now been reduced to 2.12 minutes on average to pick up
or drop off mail and parcels, and 93.5% of customers are
served in less than ﬁve minutes, the rate of commitments
kept related to second delivery attempts requiring a
signature the next day was 92.1%, the commitment to
come by later the next day in the event that an item is not
delivered during the round was 98.2 % (with automatic
cost indemniﬁcation for the customer in the event of noncompliance) and the objectives on commitments associated
with claims processing came out to 94.3% for sending out
acknowledgement of receipt within 48 hours and 94.7% for
sending out a response within the speciﬁed time frame.
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Making the relationship easier for consumers
Le Groupe La Poste has multichannel Consumer Service
thanks to: a short, unique toll-free number (3631); a
consumer area on the homepage of the Group website
portal (www.laposte.fr); and a single postal address: Service
Consommateurs — 99999 LA POSTE. Over 900,000 calls
are made to the “3631” number every month, over
149,000 unique visitors consult the Customer Service Area
on the Internet every month, and over 19,000 paper claim
forms are sent to the Customer Relations Department
by mail every month, on average. 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 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.
In 2014 La Poste won 1st place in the Bearing Point/TNS
Sofres Customer Service Awards in the utility companies
category and the “Customer Service of the Year” award.
The Group’s Consumer Department received the “Customer
Relations Centre” NF Service certiﬁcation for platforms that
serve Mail, Parcels and the Network. And Docapost’s seal
of approval for Social Responsibility was renewed in 2014
for three years, for its Customer Relationship Management
activities, in the category of Outsourced Customer
Relationship Centres.
Being accessible to everyone thanks to multichannel
Le Groupe La Poste is intended to be accessible to everyone,
regardless of the method chosen to access La Poste
services: in post ofﬁces, thanks to self-service kiosks, by
telephone, by Internet.
Three informational brochures on ways to access La Poste
offerings (for the traveller community, disabled people and
migrants) were given to associations to hand out to the
people they support.
On 13 March 2014, the third agreement which extends the
partnership with France Terre d’Asile (FTDA) was signed
for the next four years. This agreement supplements the
more general partnership signed with the OFII (French
Office for Immigration and Integration) in October 2012.
For the ﬁrst time, a volunteer component was added to the
network’s training actions and the procedures were adapted
accordingly.
In regards to accessibility for persons with reduced mobility,
the Group has plans to make its premises that are open
to the public (primarily post ofﬁces) accessible, the legal
provisions of which are set out by the government.
At the end of 2014, approximately 89% of the directly owned
facilities were accessible to persons with reduced mobility
(PRM). Since 2007, 1,530 post offices were made PRM
compliant, 151 of which in 2014. For the rental property
portfolio, 52% of sites are PRM accessible. Poste Immo is
continuing its plan to inform and raise the awareness of
institutional and private landlords for facilities in the rented
portfolio. For the lessors from local authorities (70% of
lessors), the implementation of speciﬁc adaptation plans
will be finalised in 2015, and the majority will be made
accessible for all types of disability within the next three
years.
In addition, 166 automated bank tellers located outside post
ofﬁces were upgraded to PRM standards in 2014, raising
the compliance of the installed automated bank teller base
to 4,690 automated bank tellers (representing 96% of the
installed base either PRM compliant or located in a post
office where at least one automated bank teller is PRM
compliant).
Internet access via webcam and French sign language is
available for the deaf and hearing impaired. In May and
June 2014, a film promoting the use of this service was
broadcast on post office televisions. Adopting natural
language for the 3631 vocal server was rolled out and
continuous automated monitoring of Internet form
accessibility was put in place. Additionally, the website
www.laposte.fr is accessible to the visually impaired and
complies with standards in effect (1).
The Network 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). The outlets (APC and RPC) were equipped with
digital tablets to provide widespread access to products
and services.
Proximity is a key area of accessibility. In addition to its
contribution to regional planning under its public service
mission, Le Groupe La Poste is seeking to facilitate
access to services. Pick-Up Services, GeoPost’s subsidiary
with pick-up and drop-off points, surpassed its goal of
16,000 pick-up and drop-off points in Europe, 7,000 of
which in France. Furthermore, Predict (2) is available in
18 countries in Europe, not only for domestic shipments,
but also for international shipments in most countries, with
a time-slot varying from one to six hours according to the
country.
(1) The portal of Le Groupe La Poste was developed to meet the criteria under “Silver Category” in the guidelines of the General Directorate for State
Modernisation (DGME), within the Ministry of the Economy, Finances and Industry.
(2) Predict is a service that can be used by customers to choose a delivery time. A text message or an email is sent to the customers with an option to
reschedule the delivery to another day (with a speciﬁc time-slot on a given day).
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5.8.3.2 Employee development:
the Social Pact
The Social Pact is the basis of La Poste’s social policy (see
Chapter 17).
The Group requires that partners and subcontractors
comply with labour law. In order to make it easier to ensure
the legality of employees, Le Groupe La Poste has joined
a platform (Provigis) on which suppliers can submit their
social and tax declarations more easily.
5.8.3.3 Energy transition, reducing
and adapting to climate change
Due to changes in legal and regulatory provisions, including
several major decrees and decisions that were issued in
2014, 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. Energy transition and
changes in urban logistics are key for the Group and have
been included as a high-priority shared project, since the
core of these two subjects are an essential component of
the Group’s environmental impact:
Eco-mobility and urban logistics: a responsible
supply chain development
La Poste (1), where over 1.39 billion km are travelled
per year (excluding exports), uses a fleet that includes
combustion vehicles (9,445 motorbikes, over 47,700 light
vehicles and 328 heavy goods vehicles) and electric vehicles
(18,476 electric bicycles, 1,327 quadricycles, 100 Stabys and
4,617 light vehicles). The Group pays particular attention to
the environmental impacts of its ﬂeet and to those of its
transport sub-contractors.
In 2014, Le Groupe La Poste (2) emitted 1,292,749 tons of
greenhouse gases relating to its transport activities, i.e.
a decrease of 3.7% compared with 2013, despite a 0.7%
increase in the number of mail distribution points.
5
To reduce the environmental impact of its ﬂeet, its direct
CO2 emissions and atmospheric pollution, La Poste relies
on several drivers:
f 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. Experiments
have been conducted on recharging infrastructures to
better manage charging electric vehicles as well as other
motorised vehicles that emit less greenhouse gas. This
is complemented by a steady change in the ﬂeet to bring
it up to the latest European standards; on the internal
ﬂeet managed by Véhiposte, 60% of the ﬂeet of internal
combustion vehicles (3) currently comply with Euro 5
standards, in addition to electric vehicles, which account
for 10% of the total vehicle ﬂeet;
f 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 2014, 14 swap body transport links were in service,
and in 2016, 20 swap bodies ﬁlled with mail, press and
small goods will be traversing France every day on their
ﬂatbed;
f logistical, by optimising rounds and loads. As at end
2014, 72% of national links from the Parcels division
were made via bulk delivery, versus 69% as at end 2013.
Additionally, the construction announced for a new multipurpose multi-modal transportation platform in Val-deMarne, which will handle all types of ﬂows (mail/goods),
will optimise La Poste’s transportation chain and develop
new business activities for customers at the same time.
HQE certiﬁed buildings will improve employees’ working
conditions while reducing CO2 emissions;
f a behavioural driver, particularly by providing training in
eco-driving to its employees (81,874 employees trained
since 2007). Moreover, reducing the imprint of employee
travel enables the Company to reduce physical travel
through teleworking, developing co-working areas, the
Internet and teleconference. The Group’s new contract
for employee travel was revised to include environmental
impact and carpooling solutions. Lastly, company
travel plan (PDE) and intercompany travel plan (PDIE)
processes are continuing and are increasing; at the end
of 2014, more than 60 PDE and PDIE were active.
(1) Scope: La Poste, La Banque Postale, Mediapost SAS.
(2) Scope: La Poste, La Banque Postale, Mediapost SAS, GeoPost.
(3) Scope: La Poste, La Banque Postale, Mediapost SAS, vehicles necessary for operations, excluding company cars.
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The specifications for the Group’s purchase of subcontracted transport have included environmental criteria,
such as fuel consumption and European standards for
several years. These criteria are weighted at more than
10%. The process continues with the assessment of other
criteria such as the age of equipment and eco-driving. 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.
Group’s business units in their actions to reduce energy
consumption and greenhouse gas emissions. Real estate
policy is one of the first levers to improve the energy
performance of the portfolio. Investment programmes
(ensuring compliance, maintenance, renovation),
disposing of and rotating assets, upgrading or construction
programmes, integrate energy performance improvement
in their designs and help maintain and grow the value-inuse of Le Groupe La Poste’s portfolio.
Furthermore, La Poste is currently determined to increase
its expertise relating to understanding and managing
environmental impacts other than CO 2 . As part of a
partnership agreement signed in May 2013 with the French
Nature Environment organisation, Mail has been working
to tackle issues relating to atmospheric pollution and noise
pollution on the Group’s behalf, particularly in the area of
transportation.
In late October 2013, Poste Immo signed an Energy
Efﬁciency Charter for public and private ofﬁce buildings.
The purpose of this commitment is to be a catalyst in the
process to improve energy performance. It concerns nearly
120 directly-owned buildings of more than 5,000 sqm and
accounts for 20% of the portfolio’s surface area and 22% of
total consumption. Poste Immo also won the Environmental
Reporting Trophy for its 2013 reporting, in the “Voluntary”
category of the GBC 2014 France Awards.
Meanwhile, SEUR, a subsidiary of GeoPost, received
the silver medal in the “Organisations, Institutions and
Corporations” category during the 4 th annual Spanish
Sustainable Mobility Awards Week (SEMS) (1) due, in
particular, to its new sustainable mobility measures and its
involvement in high-impact international projects. SEUR is
also a member of FREVUE, an initiative co-ﬁnanced by the
European Union to promote the use of electric vehicles in
urban goods distribution.
Lastly, on 18 December 2014, La Poste signed the voluntary
Charter to reduce CO 2 emissions from road freight
transport.
Sustainable buildings
In addition, Poste Immo is rolling out a wide range of
expertise to use all the tools at their disposal to save
energy: operation, user support, work to improve energy
performance, asset rotation. This is the top priority of the
real estate segment, and is based on several levers:
f ensuring the right scale of its real estate assets and
ensuring that they meet customer requirements and
new uses;
f construction of buildings using best market practices,
with high energy and environmental performance labels,
by ensuring the environmental efﬁciency of the building
by progressively adding green leases. For the directlyowned portfolio, the signing of green leases (2), which
began in 2013, was extended in 2014 to reach 186 green
leases. At the end of 2014, green leases signed covered
36 buildings;
Signiﬁcant changes in French environmental regulations
have led to profound transitions and real estate sector
practices (construction, renovation and operations).
f developing renewable energy (RE) sources for
With a portfolio of nearly 12,000 buildings made up of
tertiary, industrial and commercial property, or 6.8 million
square metres, 4.1 million square metres of which are
wholly-owned (see Chapter 7), Poste Immo supports the
construction projects is being systematically studied.
Furthermore, Poste Immo rolled out 45 solar power
installations, which were executed as part of a
partnership (representing 44,000 sqm of solar panels)
via its Arkasolia subsidiary at the end of 2014;
(1) The week is part of the European Mobility Week.
(2) Decree No. 2011-2058 of 30 December 2011 requires signing an environmental appendix on leases for commercial or ofﬁce locations with over 2,000 sqm.
The provisions of the decree apply to leases signed or renewed as from 1 January 2012 and all leases as from 14 July 2013.
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f improving the energy performance of the existing
portfolio is a major challenge for La Poste, considering
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. In 2014, the technology
and operational sectors were equipped with practical
and technical guidelines in order to apply the “2050
compatible” energy performance level in major repairs
and maintenance (GRGE). In the processes involving the
use and operations of buildings, Poste Immo signed
up 11 strategic sites in its portfolio for the Cube 2020
challenge (1). The ﬁrst results conﬁrm the potential to
lower energy consumption by some 15% through ecofriendly practices;
5
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 Parcels division
Industrial Platforms, where the quantities involved allow
for the optimisation of waste management. The ISO 14001
certification of the environmental management system
on the 15 Parcels division platforms also improved waste
management, reduced energy and water consumption and
prevented pollution risks.
The Group aims to relaunch a call for bids for the best reuse
of WEEE (waste from electrical and electronic equipment).
f Group sites in France are implementing actions to
comply with new obligations aiming to limit the use of
nocturnal lighting for buildings, when necessary.
5.8.3.4 Sustainable regional economic
development and sustainable employment
Green IT
Le Groupe La Poste has launched a programme to
reduce CO 2 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 in the specifications
for the suppliers involved. Requirements are mainly
based on eco-labels and energy performance of IT and
telecommunications equipment. In 2014, a brochure to raise
awareness of best practices for using their electronic and
IT equipment was circulated to employees.
Circular economy
In order to reduce its environmental impact, La Poste is
developing the circular economy for its own consumption.
Environmentally-responsible paper use represents a
challenge for the Group. In 2014, La Poste, La Banque
Postale and Mediapost consumed 18,700 metric tons,
99.6% of which was environmentally-responsible paper (an
increase of +2 points compared with 2013). All entities are
encouraged to favour environmentally-responsible paper
(i.e. recycled paper, labelled environmentally friendly or from
sustainably managed forests).
Regional planning
The Group plays an important role in different regions
through its business activities, especially in France.
For private individuals as well as companies, the density
of postal coverage ensures that 96.6% of inhabitants are
no more than 20 minutes and less than 5 km from a public
outlet in France. In more than 17,000 public outlets, all
postal transactions are possible and have been made even
simpler since the L ocal Postal agencies (APC) and the
Relais Poste outlets (RP) have been equipped with digital
tablets.
The Group actively participates in regional think tanks
and in developing their structural policies, such as
Regional Climate Air Energy Plans, Local Agendas, urban
development plans, local accessibility plans, etc. La Poste
brings its expertise in terms of transporting goods and
people, and is particularly very involved in the roll-out of
corporate and inter-corporate travel plans. The Group
contributes to setting up structuring projects for the
territories and adapting its business activity.
(1) Competition organised by the French Institute for Energy Efﬁciency in Buildings, IFPEB (Institut français pour la performance énergétique du bâtiment)
aimed to reduce the properties’ energy consumption by raising the occupants’ awareness to eco-friendly practices over a one-year period. The competition
is conducted at 74 properties among 25 companies
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Promoting CSR among companies
The ﬁrst lever is to favour responsible partners, suppliers
and subcontractors. To do this, La Poste includes social
and environmental issues into their purchasing contracts,
which, in particular, request that they adhere to a Charter
of Commitments. In the selection process, the ranking of
bidders includes CSR criteria in such a way as to favour
responsible suppliers equally. Throughout the duration of
the contract, the Group tries to support their suppliers in
taking into account CSR issues. For purchasing in areas
with big economic, environmental and/or social risks,
meetings are organised with the service providers to identify
mutually beneﬁcial ways forward. This commitment has
been recognised: on 27 March 2014, La Poste and the City
of Paris were awarded the European 1st prize trophies in
public fair trade textile purchasing.
The second lever is to help spread CSR processes among
companies. La Poste is a partner of several employer
clubs, a member of the France sustainable development
club (EpE, French Committee for the Environment and
Sustainable Development (Comité 21), C3D, the Carbon
footprint association, Study Centre for Corporate Social
Responsibility (ORSE), etc.) and supports NGOs (OREE,
FNE, FNH) whose purpose is to co-construct and encourage
contributions from French civil society at large international
sustainable development meetings. La Poste promotes high
quality management best practices through its participation
in quality associations (e.g. Afnor’s “Management &
Services” Committee, of the Innov’Acteurs association,
AFQP—Association France Qualité Performance, etc.),
its partnerships with intercompany associations (e.g.
Best Practices ISO or Club Benchmark EFQM) and
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).
The third lever is to encourage seeking ways to integrate
CSR into managerial practices. In that sense, the Group is a
partner of Paris-Dauphine University’s Diversity Chair, and a
founding member (with the KEDGE school of management,
SNCF, Orange and several NGOs) of a new Chair on the
circular economy called “Business as Unusual”.
CSR in the international postal sector
As part of its chairmanship of the UPU (1) “sustainable
development” task force, in November 2014, Le Groupe
La Poste organised a seminar for the Caribbean region
bringing together all of the postal services in that area.
Representatives from the Group shared their best practices,
particularly on managing natural disasters, diversity
and new products and services that take sustainable
development into account.
La Poste also supported the creation of the carbon
compensation fund called the Postal Carbon Fund (an
association governed by Swiss law) in April 2014 with
eight other founding postal services (Costa Rica, Ecuador,
Finland, Ireland, Senegal, Switzerland, Thailand and Togo).
La Poste was elected Chairman of the association. The ﬁrst
industry-speciﬁc carbon compensation fund in the world,
this fund allows postal services in developed countries
to offset their CO 2 emissions by funding sustainable
development and emission reduction projects in developing
countries.
Helping to develop local employment
f Le Groupe La Poste is increasing the proportion of SMEs
among its suppliers. La Banque Postale also offers loans
or factoring for SMEs.
f The Group has its takeover bids on the shared
Internet platform “Handeco - P@s à P@s”, of which it
is a founding member, which, along with initiatives to
raise awareness of solidarity purchasing (purchases
in the disabled and sheltered sector and in the sector
for integrating people via business activities) among
purchasers and managers, increased the percentage
of its purchases granted to these sectors (€14.7 million
for La Poste in 2014) and thus the local employment
of people with disabilities. The platform also includes
companies which integrate people via business activities,
which helped this sector to reach 2.13 million purchases.
f The Group also signed the Alliance Dynamique with
35 partners from the Social and Solidarity Sector (ESS)
in 2014.
Supporting the paper recycling industry
Launched at the beginning of 2012 with micro-businesses,
SMEs, and local authorities, La Poste’s office paper
collection and recycling solution, Recy’go, has now been
rolled out across France. 2,845 companies have chosen
this Mail offering, or those of its subsidiary, Nouvelle
Attitude, as well as some of La Poste’s internal facilities,
i.e. over 15,995 metric tons of paper in terms of volume,
4,332 metric tons of which were collected by postmen.
Bolstered by this ﬁrst success, the Mail division envisions
expanding its offering to other sectors. This offering will be
extended to treating loose cardboard in 2015. La Poste has
undertaken to have recycled all of the paper collected by
postmen, and to perform this recycling process in France.
Most of the sorting for recycling companies is carried out
by structures for integration through work (local partners
and the Nouvelle Attitude subsidiary).
(1) Universal Postal Union: the United Nations specialised agency for the postal sector, which includes 192 countries.
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The Silver economy: facilitating services
to individuals
La Poste signed the Silver economy contract co-launched
by the Minister for Productive Renewal and the Minister in
charge of the Elderly and Autonomy. It facilitates access
to services to individuals, either through its new postmen
services, or by developing the area of digital services.
La Poste has rolled out its Porteo Postmen Services
throughout the country (delivery of books, medications) and
Cohésio (collection of information at the home on behalf
of approved third party legal entities). Trials on a digital
concierge service are under way, the Bank has developed
a support site for caregivers (www.vivreenaidant.fr) and
postmen are being equipped with Facteo smartphones, the
process of which will be completed by the end of 2015 – all
of which open up many new development opportunities.
Le Groupe La Poste has also developed a solution with
partners (Tikeasy, Bayard Presse, and Archos) called
Cohesio Digital, aiming to create a package of services
to encourage “living well at home”, social ties and home
support for elderly people. A user-friendly digital tablet
providing access to services and social ties will be tested
in April 2015. The project was one of the winners selected by
the French government as part of the 2030 Global Innovation
Competition on 23 July 2014.
Solutions for sustainable mobility
The Group is particularly invested in developing more ecofriendly vehicle ﬂeets. Grouping together electric vehicle
orders structured the demand for electric utility vehicles
and the emergence of an industrial sector. An order for
nearly 20,000 vehicles, including 10,000 for La Poste, was
made based on the needs of public corporations, roughly
20 private companies, local authorities and the French
government. The 5,000th vehicle was delivered to La Poste
at the end of 2014.
With the support of postmen, the Group tested prototypes
and drew up speciﬁcations for a three-wheel electric vehicle
intended to partially replace the accident-prone motorised
two-wheelers that emit greenhouse gases. In 2014, the
manufacturer, Ligier, won the contract with the Staby, and
100 Stabys have since been introduced.
The Group’s expertise in fleet management is used to
support corporations and authorities in their transformation
projects: optimising vehicle ﬂeet management, helping to
5
introduce electric vehicles and creating innovative solutions
(car-sharing, carpooling, etc.), creating corporate travel
plans (PDE). In addition, Mobigreen, a subsidiary of the
Services-Mail-Parcels business unit, trains employees of
companies and authorities in eco-driving, handling electric
vehicles and road safety. Since 2014, it has been offering
a comprehensive consulting service on implementing
sustainable captive ﬂeet management.
Supporting innovation while maintaining corporate
social responsibility (CSR)
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, organisational or technological trends.
Furthermore, by virtue of the range of its business activities
and its interaction with all segments of society, La Poste
represents an appealing testing ground for various research
groups. It is therefore a partner of several competitiveness
clusters throughout the country.
La Poste focuses on ﬁnancing and supporting innovators:
f o n 26 May 2014, Le Groupe La Poste launched
Start’inPost, a new subsidiary under the Digital Services
business unit (see Chapter 5, Section 5.5). Several of
the innovations supported by this start-up support
programme make it easier for everyone to access
products and services;
f La Banque Postale offers professional micro-loans in
partnership with Adie, in order to help with company
start-ups and handovers;
f the Group supports the collaborative economy:
partnership with KissKissBankBank (46 projects were
supported), and with HelloMerci (peer-to-peer solidarity
loans). In May 2014, the Group was also a partner of
the OuiShareFest, for the second edition of this event,
which brought together the international community of
professionals working on the future of the collaborative
economy. The Group thus supports the development of
economic models where use is more important than
ownership and where the use of a good or a service can
be increased through sharing, trade, bartering, sale or
rent, with a strong local dimension and digital support;
f as part of its partnership with Ashoka, GeoPost launched
a call for projects on “the last mile of delivery” to
social entrepreneurs in order to simplify deliveries for
customers and reduce their environmental impact.
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5.8.3.5 Developing solidarities
and working together
The Group is working to push boundaries to prevent
exclusion, owing to its long-standing commitment for
access to information, by creating links between players,
access to banking and insurance services and the
commitment of its staff and La Poste to support vulnerable
people in accessing education, culture and, ultimately,
employment.
Promoting human rights
Le Groupe La Poste is a member of the Global Compact and
every year publishes a communication on progress made.
The Group promotes human rights to its suppliers, who
pledge their compliance by signing the Purchasing Charter.
The Group’s CSR Reference Guide, upon which internal
control and internal audit is based, includes human rights.
Compliance monitoring primarily needs to focus on
discrimination and equal opportunities, well-being at work
(occupational accidents and illnesses, musculoskeletal
disorders – MSD, psychosocial risks) and job quality. The
Group’s companies have progressively developed policies
and practices aimed at respecting equal opportunities
and non-discrimination towards both employees and
customers, as deﬁned in International Labour Organisation
agreements. La Poste is especially committed to this cause
(see Chapter 17).
Social action towards employees and their family
La Poste’s 2014 budget for social action amounted to
more than €213 million and was primarily allocated to
catering, sporting and cultural activities, children, vacation
and contingency and social solidarity. La Poste has also
developed individual social action services, such as holiday
vouchers (45,473 savings plans), study grants, and pre-paid
service cheque s (CESU) (see Chapter 17). The housing
service assists vulnerable people by offering access to
housing and social housing (see Chapter 17).
Joining forces to offer new public policy solutions
The Group’s strategic plan is based on developing existing
business activities and conquering new areas, which is the
entire purpose of the Alliance Dynamique, a cooperation
between the Group and stakeholders in the Social and
Solidarity Economy (ESS), launched on 14 October and
which undertakes ﬁve shared areas of work: shared spaces,
banking products, human resources, energy transition, and
purchasing.
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The Group is currently working with the main players in
the sector to transform these projects into concrete and
operational programmes. Two other projects are being
studied – shared digital technology and shared mobility.
La Poste and employees’ commitment to social
integration
The initiatives aimed at social integration focus on access
to money, 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 (see Section 5.8.3.1), La Poste’s goal of
contributing to social integration is supplemented by
several initiatives. 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.
La Banque Postale pays special attention to financial
vulnerability. La Banque Postale supports IEFP (Institut pour
l’éducation ﬁnancière du public – Institute for public ﬁnancial
education) and the Entreprise et Pauvreté association.
It also rolled out the “L’Appui” platform, which provides
advice and banking/budgeting guidance for financially
vulnerable customers. It was expanded in 2014 to the
ﬁnancial centres, volunteer post ofﬁces (more than 100 in
the Greater Paris region and in the Rhône-Alpes region),
to La Poste’s Mediator, claims departments and partner
charitable organisations. “L’Appui” was recognised by the
French government as part of the “La France s'engage”
(France commits) projects. La Banque Postale also offers
customers who are experiencing temporary or recurring
financial problems services like banking and budgetary
support, and an introduction to partners, organisations and
social services, in order to expand access to entitlements
and to socially inclusive offerings.
These actions also apply to its partners and subcontractors.
Le Groupe La Poste, together with TF1, Orange, L’Oreal,
Publicis and Manpower founded the B'A'ba Solidarité
intercompany organisation that combats illiteracy and
provides access to basic skills within companies.
The Group is also involved in promoting the employment of
vulnerable persons by:
f 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 organisations’ plans (local missions, and
job centres);
Overview of business activities
Dependence on patents
f developing mentoring and sponsorship programmes for
young people and job seekers (signing of a partnership
agreement with the “Our Neighbourhoods Have Talent”
(Nos quartiers ont du talent – NQT) organisation and with
the French “second-chance schools” in December 2012,
which enabled students to discover La Poste’s jobs and
those of its suppliers and subcontractors. In 2014,
La Poste joined the Board of Directors of the new French
“second-chance schools” foundation and the partnership
will be renewed in 2015). La Banque Postale founded
the L’Envol (Take-off) organisation in 2012. The aim of
this organisation is to help talented students from lowincome (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 their
ﬁrst year in high school until their entry into a higher
educational stream;
f by supporting young people seeking professional
5
The Group is engaged in providing access to information
and developing writing skills. The La Poste foundation
undertakes actions on a local level to make learning how
to write accessible to everyone. Around 50 projects were
supported in 2014 to help isolated people (hospitalised,
incarcerated, etc.) or those who have lost touch with writing
to rediscover the pleasure of writing.
In addition, in 2014, La Poste signed a partnership with the
Monalisa association (National mobilisation against the
isolation of the elderly) whose goal is to encourage elderly
people to maintain active lifestyles.
Le Groupe La Poste supports its employees’ commitment to
solidarity: internationally, by ﬁnancially supporting two nonproﬁt associations: Planète Urgence (since 2006) and France
Volontaires (since 2008). In 2014, 50 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 550.
integration. In July 2014, Mediapost SAS and the EPIDE
signed a partnership agreement for which Mediapost
SAS obtained the Prize in the “Training and Mentoring”
category, during the 9th Diversity Awards. The prize was
awarded in Paris on 9 October 2014 by the consulting
ﬁrm Diversity Conseil RH.
5.9
Exceptional events
Not applicable.
5.10 Dependence on patents
Not applicable.
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108
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Simplified
organisational chart
6
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109
6
Simpliﬁed organisational chart
The Group is structured around the operating segments
described in Note 5 to the consolidated ﬁnancial statements
(income statement and main elements of the balance
sheet).
Almost all the operating segments comprise a division of
La Poste and a ﬁrst level subsidiary, with each ﬁrst level
subsidiary itself having several subsidiaries listed in Note 41
of the notes to the consolidated ﬁnancial statements. The
business activities of the Group’s main subsidiaries are
presented in Chapter 5 (“Overview of business activities”)
of this registration document.
The Group’s simpliﬁed organisational chart at 31 December
2014 is presented below. The percentages mentioned for
each entity correspond to the interest share in the capital.
La Poste
Business
segments
La Poste
divisions
Secteurs
d'activité
La Poste - Parcels
SECTEURS OPÉRATIONNELS
Services-Mail-Parcels
La Poste - Mail
La Poste - Home services
Secteurs
GeoPost
d'activité
Secteurs
d'activité
La Banque Postale
Mail ﬁrst-level
subsidiaries
Soﬁpost
(100%)
(100%)
La Poste
Financial Services
(100%)
(excluding digital
services activities)
(1)
GeoPost
(1)
La Banque Postale
(1)
(20.15%)
Soﬁpost
Secteurs
d'activité
La Poste
Digital Services
(100%)
La Poste Network
Secteurs
d'activité
La Poste
La Poste Network
(51%)
Secteurs
Real Estate
d'activité
La Poste
Real Estate
(100%)
Secteurs
Other
d'activité
La Poste
Support and headquarters
(100%)
Digital Services
CNP
(Docapost and Mediapost
digital services activities)
(1)
La Poste Télécom (2)
(1)
Poste Immo
(1)
Véhiposte
(1)
(1) See detail of each operating segment’s subsidiaries in the scope of consolidation presented in Note 41 to the consolidated ﬁnancial statements.
(2) Joint venture owned together with SFR.
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Simpliﬁed organisational chart
6
The main second or third level subsidiaries in the Services-Mail-Parcels, Digital Services, GeoPost and La Banque Postale
segments are the following (with the Group’s share of interest):
Soﬁpost (1)
Docapost
Mediapost
Holding
(100%)
Viapost
Asendia
(100%)
(50%)
Logistics
International
Mail
(100%)
Commercial
communication
Desktop publishing, BPO
Digital Services
Services-Mail-Parcels
GeoPost
Chronopost
(France)
(100%)
Exapaq
(France)
(100%)
DPD Germany
Division
DPD GeoPost GmbH (100%)
DPD Vetriebsgesellschaft (84%)
DPD Aschaffenburg (84%)
DPD Betriebgesellschaft (84%)
DPD Delicom (84%)
DPD
Poland
Division
Siodemka (100%)
DPD Polska (100%)
DPD UK
Division
GP UK Ltd (100%)
Interlink Express
Parcels Ltd (100%)
SEUR
Spain
Division
GeoPost
Intercontinental
Division
SEUR GeoPost (92%)
DPD laser (75%)
Menexpres (92%)
SEUR International (92%)
SEUR SA (65%)
(1) The legal operations of splitting the Soﬁpost subsidiaries between the Services-Mail-Parcels and Digital Services business units will be conducted in 2015.
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CNP
(20.15%)
(36.25%)
Sopassure
(50%)
(50%)
LBP
Prévoyance
(50%)
Insurance
LBP
Conseil
en assurances
(100%)
LBP
Assurance
IARD
(65%)
LBP
Assurances
santé
(65%)
(100%)
SF2
Tocqueville
Finance
(92%)
Asset Management
LBP SAM
(100%)
LBP
Asset
Management
(100%)
(100%)
BPE
(99.99%)
LBP
Gestion Privée
LBP
Collectivités
locales
(65%)
La Banque Postale
LBP
Crédit
aux entreprises
(100%)
Retail banking/loans
LBP
Financement
(65%)
CRSF DOM (100%)
CRSF Metropole (100%)
Tertiaire St Romain (100%)
SCI
6
Simpliﬁed organisational chart
6
Simpliﬁed organisational chart
Intragroup relations
Intragroup relations
The main ﬂows between La Poste and its subsidiaries are
described in Note 1.5 of the notes to the parent company
ﬁnancial statements (see Chapter 20, Section 20.2).
As Group parent company, La Poste provides funding
for industrial and commercial activities and equity for
La Banque Postale. In connection with this policy of
centralising the Group’s financing, La Poste received
€190 million in interest corresponding primarily to loans,
contributions and guarantees granted to subsidiaries,
including interest income from La Banque Postale’s
perpetual subordinated bonds (€64 million). In addition to
cash ﬂows linked to this ﬁnancing activity, La Poste received
€445 million in dividends in 2014 (see Note 33 of the notes
to the parent company ﬁnancial statements).
Furthermore, 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 (La Poste Network post ofﬁces) and
back-office (financial centres) operations. La Banque
Postale is La Poste’s main banker. The transactions
carried out between the the Group’s fully consolidated
companies and with the other related companies, and with
joint ventures, are presented in detail in Note 35.2 to the
consolidated ﬁnancial statements.
Furthermore, treasury agreements have been implemented
between La Poste and most of its subsidiaries (excluding
La Banque Postale) in connection with deﬁned management
rules.
A large majority of the Group’s debt is held in La Poste’s
accounts. The Group’s assets are detailed in Chapter 7.
The table below details the components of certain balance
sheet items (non-current assets, debt, cash and cash
equivalents), cash ﬂows from business activities and the
amount of dividends paid in 2014 and owed to the Company
as at 31 December 2014, broken down between La Poste
parent company and the main business units:
La Poste
La Banque
Postale
GeoPost
Poste Immo
Other
Group
Non-current assets (including goodwill)
1,228
1,102
2,381
2,976
848
8,535
Intercompany debt
6,897
82
26
7,005
Cash and cash equivalent and other asset
items included in the net debt calculation
2,801
176
22
2,999
(438)
(€ million)
Cash ﬂows from operating activities
Dividends received by La Poste
216
(1,469)
378
263
173
261
86
82
16
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Property, plant
and equipment
7
7.1
The Group’s assets
116
7.2
Environment and sustainable development
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7
Property, plant and equipment
The Group’s assets
7.1
The Group’s assets
Net book value of non-current assets
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.
The net book value of the Group’s intangible assets
(excluding goodwill) and property, plant and equipment
amounted to €6,730 million at 31 December 2014, compared
to €6,738 million at 31 December 2013.
The net book value of capital assets by type and sector as at 31 December 2014 can be presented as follows:
Net book value
(€ million)
ServicesMail-Parcels
Intangible assets
Land and buildings
Machinery and equipment
Vehicles
Other tangible assets
Assets under construction
TOTAL
GeoPost
La Banque
Postale
Digital Services
La Poste
Network
Support and
Structures
Real estate
Total
240
124
350
67
24
44
1
850
18
361
424
8
0
2,819
0
3,629
305
189
57
24
6
0
35
617
17
33
0
0
0
0
420
470
178
77
133
14
80
347
43
874
14
160
7
0
0
109
0
291
772
945
972
114
110
3,319
499
6,730
Information on non-current assets by nature is presented
in Notes 16 and 17 to the consolidated ﬁnancial statements
and in Notes 9 and 10 to the parent company financial
statements.
The Group’s main assets are made up of fully owned or
rented property assets.
Other property, plant and equipment include vehicles,
machinery and ofﬁce ﬁttings.
The Group’s property assets correspond to a portfolio of
12,490 buildings with total surface area of 9,770,000 m2,
4,231,000 m2 of which are wholly owned. They break down
as follows at 31 December 2014:
GROUP PROPERTY ASSETS BY CATEGORY
Directly-owned properties
Mail/Parcels platforms
m2 thousand
number
m2 thousand
590
1,260
768
1,769
GeoPost platforms
10
161
70
285
Financial centres
50
319
7
12
2,290
1,310
7,315
1,184
Administrative buildings
180
528
445
641
Other sites
295
653
470
1,648
3,415
4,231
9,075
5,539
Post ofﬁces
TOTAL
116
Rental properties
number
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Property, plant and equipment
Environment and sustainable development
GROUP PROPERTY ASSETS BY GEOGRAPHIC AREA
Directly-owned properties
Rental properties
number
m2 thousand
number
m2 thousand
France
3,375
4,009
8,610
3,903
Europe
40
222
380
1,446
0
0
85
191
3,415
4,231
9,075
5,539
Other continents
TOTAL
The vast majority of the Group’s property assets are
managed by the real estate operating segment, which
includes Poste Immo (wholly-owned) and La Poste’s Real
Estate Department. The assets managed by the real estate
segment represented 2,699 million m2 of floor space in
wholly-owned properties and 3,809 m2 of floor space in
rental properties at end-December 2014.
OCCUPANCY OF DIRECTLY-OWNED AND RENTAL PROPERTIES BY BUSINESS SEGMENT
m2 thousand
%
Services-Mail-Parcels
4,013
41%
GeoPost
2,175
22%
465
5%
La Banque Postale
Digital Services
La Poste Network
Support and Structures
109
1%
1,941
20%
181
2%
External customers
Vacant areas
TOTAL
The gross vacancy rate of directly-owned properties (1) was
15.2% at 31 December 2014. It represents 642,000 m 2,
354,000 m2 of which are under sale and around 2,200 m2
7.2
79
1%
806
8%
9,770
100%
under renovation or demolition. The net vacancy rate (2) of
these areas was 6.7%.
Environment and sustainable development
This section is covered in Chapter 5, Section 5.8 “Social and Environmental Responsibility”.
(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.
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Innovation
and intellectual property
8.1
Open innovation: a project accelerator
8
120
8.2 Process improvement
122
8.3
122
Internal innovation
8.4 Intellectual property policy
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8
Innovation and intellectual property
Open innovation: a project accelerator
In a society undergoing tremendous change, Le Groupe
La Poste, a multi-business service operator, makes
innovation a key component to its strategy in order to meet
customers’ new expectations.
These changes entail both risks and development issues
for the Group. The Group’s innovation strategy is therefore
evolving with three main objectives:
To that purpose, its innovation strategy takes into account
such major developments as:
all of the Group’s business activities: listen to customers
and identify innovative offers and technologies in the
environment, suited to their needs;
f the changing relationship between organisations and
f develop service innovation (1), a common component in
customers with the impact of digital technology in every
step of everyday life;
f continue modernising business processes: integrate new
f changes in consumption methods with the acceleration
f promote an internal culture of innovation: allow everyone
of e-commerce;
f the ageing population in France with the accompanying
technologies for better quality of service;
to develop tools, services and to discuss methods and
best practices.
movement of ageing well at home.
8.1
8.1.1
Open innovation: a project accelerator
Develop service innovation through open innovation
O p e n i n n ova t i o n , a co n ce p t d e f i n e d i n 2 0 0 3 ( H .
Chesbrough (2)), is based on the acknowledgment that it is
imperative to have all internal and external contributors
participate in developing new ideas.
The principle of open innovation consists in connecting
companies to their environment to stock up on ideas,
inventions, processes, teams and market validations.
8.1.2
It is this principle which is central to developing innovative
services in the Group by relying on a value-creation
ecosystem (customers, shareholders, suppliers, academia)
and on the Group’s ability to notice fundamental sociotechnological changes and identify the best solutions to
integrate them into processes, products and services, in
line with this ecosystem.
Creating value with open innovation
Backed by many years of experience, open innovation is
developing around several supplementary processes within
the Group via four steps:
f future challenges are analysed in collaboration with
academia. They require 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 the business unit s. In 2014,
challenges related to ageing as well as society's digital
transformation enabled the identification of potential
short- and medium-term opportunities for the Group;
(1) The goal of service innovation, while drawing frequently on disruptive technological solutions, is to above all enhance and/or facilitate the customer
experience during interactions with its supplier.
(2) H. Chesbrough, an Adjunct Professor and executive Director of the Center for Open Innovation at the University of California Berkley’s Haas School of
Business, developed a thesis on open innovation (Open Innovation: The New Imperative for Creating and Proﬁting from Technology-2003).
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Innovation and intellectual property
Open innovation: a project accelerator
f identifying trends and sharing experience is achieved
by being actively involved in the innovative ecosystem (1)
with:
− intercompany clubs, forums for discussing and
sharing best practices between major groups and
SMEs – innovative start-ups (Club des Directeurs de
l’Innovation, Club Open Innovation, IE Club),
− associations and think tanks where contributors to
innovation meet and share transformative ideas: FING,
competitive clusters (Cap Digital),
− customers: to jointly build and test new offerings
before their launch on the market (for example, the
Banking Lab),
− support to associations that work to promote
innovative companies (Moovjee),
− partnerships with events seeking to support
innovation:
− in 2014, the Group supported the Paris “Innovation
Grands Prix” for the fourth 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;
f qualiﬁcation and execution of innovative projects, with
SMEs and start-ups:
− Lab Postal, the sixth event of which took place on 4
& 5 December 2014, and which gathered together
20 prototypes and innovative solutions structured
around seven themes (Trustworthy digital services,
Collaborative economy, Customer experience, Silver
economy, Data, Different work methods, Smart Cities).
Lab Postal has become a major event in the Paris
region’s innovation ecosystem and 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.).
8
Since its creation in 2009, 90 prototypes have been
produced on this basis with the business units and
their subsidiaries, with 20% reaching concrete
development phases (smart letterboxes, complex
data analysis system to manage industrial containers,
innovative urban delivery vehicles, citizenship relations
management, etc.),
− the FTSIO open innovation fund (le Fonds Transverse
p o u r l’ I n n o v at i o n O u v e r t e ), w h o s e b u d g e t i s
€450,000 for 2014, contributes 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 has helped 40 projects to
emerge from all business units and has funded 21 of
them with 22 different partners (for example, Pickup
Store, a boutique located in Paris region train stations,
which offers online shoppers a new delivery solution
for their parcels and easier access to practical
everyday services; or Doc Eye, a set of professional
applications on augmented reality glasses),
− Start’inPost, launched on 26 May 2014, is Le Groupe
La Poste’s industrial accelerator. Its goal is to facilitate
innovation within the Group using a pragmatic
approach to open innovation, notably by developing
business relationships with the Group’s operational
entities.
The programme, offered to selected projects, lasts
one year and takes place in two phases:
− one three-month long test phase to test the
technical and commercial viability and strength of
the project,
− one nine-month long acceleration phase during
which Le Groupe La Poste provides material,
methodological and commercial resources to
accelerate project development.
For projects deemed strategic in nature, Start’inPost
can fund growth due to acquiring a stake in the share
capital.
After six months of activity, the accelerator chose ﬁve
start-ups to launch pilots with the Group’s operational
entities and has already integrated the start-up
Heuritech in its acceleration phase,
− the “Paris Lab” of the Services-Mail-Parcels
business unit: launched in 2014, this “living lab” aims
to incubate new uses and services for its postmen
by organising experiments in regions through
partnerships.
(1) The open innovation ecosystem deﬁnes relations between a company and all of its innovation partners.
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8
Innovation and intellectual property
Process improvement
Among these new uses and services, Cohesio Digital,
designed with research laboratories and a start-up,
won the G lobal innovation award (1) in the Silver
economy category. The goal of Cohesio Digital is to
help elderly people age well at home, without feeling
isolated, by combining home care assistance by the
postman, an open multi-services platform and a robot
to provide the interface;
8.2
f venture capital contributions and capital development
via XAnge: for the past 10 years, La Poste and La Banque
Postale have contributed €44 million, for their share, to
provide equity ﬁnancing for young, innovative companies
via the capital investment fund management company
XAnge, along with partners (CDC, CNP, Neopost, Laser,
Idinvest, DPI Financement). The funds used for these
investments are mostly from the capital risk company
(SCR) XAnge Capital, the venture capital fund (FCPR)
XAnge Capital 2, and the Common Innovative Investment
Funds (FCPI) collected every year primarily by the La
Banque Postale network. The Group also provides its
business expertise in generating XAnge’s deal ﬂow.
Process improvement
For several years, each of the Group’s business units have
been continually improving the quality of service offered to
customers.
In addition to the industrial modernisation that has been
under way for more than 10 years, this optimisation
takes place by integrating new technologies into existing
processes, modelled on a few of the following signiﬁcant
examples currently being rolled out:
f Predict, the solution developed by DPD UK and gradually
expanded to all European subsidiaries, to deliver
within an announced two-hour window and several
rescheduling options;
f secure online payment through voice recognition, offered
by La Banque Postale;
f tablets which equip post offices and Local Postal
agencies to create connected public outlets.
f Facteo, a smartphone which aims to simplify interactions
between customers and the postmen;
8.3
Internal innovation
Changing culture and tools is an important driver of Group
transformation and depends on internal 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 organisational performances.
To this effect, the “20 projects for 2020” internal innovation
stimulation programme was launched on 26 June 2014 as
part of the roll-out of the “La Poste 2020: Conquering the
Future” strategic plan. This programme responds to two
major challenges for the Group: its development and its
transformation.
This plan aims to harness internal energies to conquer
new areas every year: employees can propose then develop
innovative projects to either develop new business activities
or to improve the Group’s customer experience.
The teams of employees with winning projects, which are
selected by a committee of experts and submitted to the
Chairman and Chief Executive Ofﬁcer, may develop their
project within La Poste for 6 to 18 months. They will be
sponsored by a Group executive and the Group Executive
Committee will monitor the progress of their projects.
(1) The goal of the Global Innovation Competition is to ﬁnd talented people and future champions of the French economy by ﬁrst identifying them, and then
by supporting the growth of French entrepreneurs or foreign entrepreneurs whose innovation project presents particularly strong potential for the French
economy. (www.entreprises.gouv.fr/innovation-2030/accueil-innovation-2030).
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Innovation and intellectual property
Intellectual property policy
“20 projects for 2020” aims to create an “intrapreneurial”
spirit, or in other words, an internal entrepreneurial and
innovative spirit, a real managerial lever for all of the
Group’s transformations.
8.4
8.4.1
8
By pooling together and organising employee resources
around focus areas described in the strategic plan, by
changing management methods and by creating an
ecosystem that encourages the development of supervised
initiatives, the Group must generate a new surge of
groundbreaking ideas from external companies.
Intellectual property policy
Patents
As service operators, the Group’s business units mainly
use patents and licenc es developed by partners and
suppliers. The amount invested for research tax credits is
not signiﬁcant.
and sorting, transport and storage, distribution and
collection).
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
The Group is not dependent upon any patents.
8.4.2
Dependence on patents
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.
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9
Risk factors
9.1
Risk management system and methods for identifying and handling risks
126
9.2
Strategic risks
127
9.3
Operational risks
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9.4
Financial risks
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9.5
Legal and regulatory risks
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9.6
Policy of covering certain risks with insurance
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Risk 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. Signed by the Chairman of Le
Groupe La Poste, this Charter, which has been in force since
1 January 2010, was updated on 1 January 2015. It applies
across the whole Group.
The risk management system is in compliance with the
professional standards recommended under COSO and
ISO 31000 international guidelines and the French Financial
Markets Authority’s reference framework. It is also based
on standards contained in the legislation and regulations to
which La Banque Postale is subject.
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 unit , subsidiary and
functional 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 they are
presented to the Executive Committee who approves them.
The Executive Committee relies on the Group Risk
Committee, a body combining representatives from the
business unit s, the main subsidiaries and the crossdivisional support functions, which coordinate the risk
management approach.
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.
The Group Risk Department, which works under the Audit
and Risk Director 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 organises the
"risk/insurance and internal control" sector.
f operational and strategic risks associated with all of the
This sector supports the managerial line up to the
operational premises in order to help control its business
activities and risks.
There are three types of risk facing Le Groupe La Poste:
Group’s business activities;
f risks inherent to financial management activities,
especially for La Banque Postale;
f risks pertaining to the legal, regulatory and market
environments in which business activities and missions
are carried out.
La Banque Postale, GeoPost and Poste Immo also have
Audit Committees, to which the main risk factors relating
to these entities’ business areas are presented.
(1) See Chairman’s report on corporate governance and internal control and risk management procedures (appendix 1).
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Risk factors
Strategic risks
9
9.2 Strategic risks
Risks linked to the strategic environment or to the implementation of strategy could have an impact on market developments
for each business unit and on the management of external growth transactions and partnerships.
Risks related to the business units’ different markets
Risks relating to declining mail and postal
parcels volume
Situation and competitive pressure in Europe
and outside Europe on Express activities
f For the last several years, physical mail volume in
Express parcel transportation activity (GeoPost) is facing
significant pressure on prices in Europe due to stiff
competition both in the BtoB and BtoC segments, with the
latter rapidly growing with the rise in e-commerce. This in
turn is putting increasing pressure on margins. Moreover,
the market is characterised by both weak economic growth
in Europe and by political instability in several emerging
countries where GeoPost operates.
France is sharply declining, as is the case with most
other countries, under the effects of mail digitisation of
in particular, and this trend should continue.
To keep positively contributing to the Group’s ﬁnancial
business plan, the Services-Mail-Parcels business
unit is expanding its products and services, notably by
developing growth areas and through innovation. The
main risks relate to its ability to develop in tune with
market expectations while adapting its organisations and
its production facilities to the decrease in volumes.
New products and services (new postmen services,
increasing targeting capabilities for physical and digital
media mail, offerings to “pros”, e-commerce logistics)
and creating synergies between handling and delivery
networks for different areas of the business unit (notably
mail/parcels) aim to control this risk.
f In the postal parcels market in France, the Parcels
division must deal with the ongoing popularity of
alternative delivery models, which has led to signiﬁcant
pressure on prices.
The Parcels division has implemented several actions
with the development of the So Colissimo offer,
perfecting its information system, using additional
delivery methods to deliver parcels to automated lockers
and the Pickup network. The integration of ColiPoste
(now called the “Parcels division”) into the Services-MailParcels business unit in 2014 also aims to strengthen the
continuity of the range and operational synergies with
Mail.
The measures taken by GeoPost’s management at the local
and Group levels have enabled it to continue expanding its
business activities and results until now.
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
credit lending for legal entities and local authorities, as
well as for social home ownership programmes 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.
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Risk factors
Strategic risks
Making the range more comprehensive, (it is now complete),
implementing structured sales methods on which the entire
sales force and advisors are trained and combining sales
management between La Banque Postale and La Poste
Network reduces this risk. 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”.
This change is resulting in a substantial and fast drop in
the number of counter transactions, which has only been
partially offset by ATMs and the Internet. The challenge
is twofold: ensuring the multichannel development of
business activities, and particularly banking and mobile
telephone activities, and physically adapting the network
(types of coverage, products and services available,
locations, interior layout) to customers’ needs.
Adapting the Network to changes in customer needs
and achieving business development objectives
Achieving these two objectives in the very dense post ofﬁce
network could face various operational difﬁculties (from a
local, HR ﬂuidity and adaptability, building conﬁguration and
information system standpoint).
The digitisation of society and the resulting changes in
consumer practices have signiﬁcant consequences on post
ofﬁce activity and the expectations of individual customers
and micro-businesses, typical customers of this sales
channel.
By combining the Network action plan of the 2014-2020
strategic plan, the Digital Services action plan, changing
the products and services of the different business units,
and combining the Network and La Banque Postale’s sales
management, the company aims to address these risks.
Risks related to external growth transactions
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 prices, etc.), business risks
(loss of major customers, new competitors, substitution
products, etc.), management, social, legal risks, etc. When
such risks materialise, the proﬁtability or even the viability
of the acquired entity may be challenged.
Within Le Groupe La Poste, acquisitions up to now have
essentially taken place in the GeoPost, Services-MailParcels and, to a lesser extent, the La Banque Postale
business units, with part of their development 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.
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:
f At the Group level, any acquisition of more than
€30 million must be reviewed and approved by the Board
of Directors, as well as external growth transactions
carried out as part of a new strategic management
strategy, regardless of their amount. Additionally, there
is an In-house Capital Expenditure Committee whose
mission is to review, prior to review by the Le Groupe
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La Poste Board of Directors, external growth transaction
projects amounting to less than €30 million, any
transactions resulting in moving to a new country, or any
development project including a new business activity.
f At the operational level, each acquisition is evaluated
based on an assessment carried out by specialists or
external consultants on the quality of the results, 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, speciﬁc 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.
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. For 2014, an
impairment on €8 million in goodwill was recognised
(see Chapter 20.1, Note 15.3.1 of the notes to the ﬁnancial
statements).
Risk factors
Operational risks
9
Risk relating to the inability to generate the level of cash required
for the Group’s development
At a time when the Group is undergoing major changes in
its business model and corresponding capital expenditure,
the Group’s ability to sustainably grow the business relies
on two complimentary focus areas:
f generating positive cash flows every year after
self-financing its business activities and its current
organic growth as well as paying dividends to Group
shareholders;
f ensuring the Group’s access to its external sources of
Several risk factors weigh heavily on achieving these goals:
the continued decline in mail volume, impacts from low
interest rates in banking activities, the difﬁcult economic
environment in France and in other European and nonEuropean countries.
Measures taken to develop new sources of revenue and
to strictly control operating and ﬁnancial expenses must
offset these risk factors and promote the generation of net
positive cash.
ﬁnancing (shareholders, bond market) in order to carry
out signiﬁcant external and organic growth transactions.
9.3 Operational risks
Changes in employees and skills
Le Groupe La Poste’s staff comprises both state and private
employees, and is spread over a large number of facilities
throughout the country. These features make it complex
for organisations to adapt, all the more so since La Poste’s
respective business units are facing rapid, fundamental
changes in their strategic environment and markets. This
leads them to overhaul their work organisation , which
has both quantitative and qualitative repercussions on the
Group’s human resources policy.
The risks from these developments are as follows:
Occupational risks
As with all labour-intensive companies, La Poste may
generate:
f 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);
f risks linked to changes in organisational structures
and business unit content (skills management and
psychosocial risk);
Risk of developing insufﬁcient skills
f image risks in employee-customer relations.
The qualitative and quantitative changes of La Poste’s
business activities involve a necessary adjustment of
employees’ skills. This necessity is not new, and it has
always been taken into consideration. Nevertheless, the
current rhythm of changes (digitisation of mail, growth of
e-commerce, increase in new banking offers, omnipresence
of new IT and communication techniques), is such that the
subject of continued skills development is on the agenda.
As such, La Poste is strengthening its actions in the areas
of workforce and skills management planning and training.
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 line of business.
Priority measures determined by Executive Management
were rolled out and involved support for management, the
organisation of work and change management, health
and safety at work, and strengthening local HR functions,
as well as forward management of headcount, skills and
teleworking.
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Risk factors
Operational risks
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, more than 210,000 individuals (1) serve 66 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 measure the
economic importance of the services Le Groupe La Poste
provides to the public and businesses, the degree of contact
between employees and customers and between employees
themselves, and also the importance of the human factor
in postal business.
Moreover, in accordance with current regulations on civil
protection and defence, 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 employees 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.
Crashes 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 the Group’s information systems unavailable following
a partial update of the anti-virus protection or the failure
to update it, an insufficiently detected virus spread, an
(1) Scope: La Poste parent company.
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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 authorisation) 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 lead
to direct or indirect revenue losses.
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 stateof the-art prevention measures. Following the example of
other large companies, La Poste has organised a CERT
(Computer Emergency Response Team). Furthermore,
considered under the military planning law as Operators
of Vital Importance (OIV), the Group works closely with the
French Information System Security Agency (ANSSI) and
abides by the rules inherent to this classiﬁcation.
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 due to hardware
or software, La Poste and its subsidiaries are introducing
business continuity and business recovery plans in
applications deemed critical.
Risk factors
Financial risks
Risk of armed robbery and incivility 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 10 years as a result of the actions taken by
La Poste. Additionally, the number of incivilities recorded
is increasing.
Vigilance and security programmes are continually being
strengthened.
Bank fraud
Like all banks, La Banque Postale has seen an upsurge of
external fraud.
9
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, then in 2014,
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 (transaction
security).
This signiﬁcant effort decreased the net cost of fraud from
2013 to 2014 (-14.7%), despite an increase in commercial
operating activities.
Furthermore, La Banque Postale beneﬁts from an insurance
programme from Le Groupe La Poste for internal and
external fraud and, in particular, bank fraud.
9.4 Financial risks
Apart from banking activity liabilities, which La Banque
Postale manages distinctly and in collaboration with
the Group, the Group’s other financial liabilities mostly
comprise bonds and bank overdrafts. The main purpose of
these ﬁnancial liabilities is to ﬁnance the Group’s operating
activities. They take out derivative instruments, mainly
interest rate swaps, in an effort to manage interest rate
risk associated with its ﬁnancing.
associated risks of which (counterparty and liquidity)
are managed daily. 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.
The Group also holds financial assets such as cash and
cash equivalents and short-term investments, which
are generated directly by its business activities and the
An execution report on the Book of Limits is also presented
annually to La Poste’s Audit Committee. In 2014, it contained
no particular observations.
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 via monthly provisions of cash
and cash equivalents and dealt with by implementing
conﬁrmed credit facilities with ﬁnancial institutions, and if
necessary, by issuing short-term negotiable debt securities
(commercial paper and Euro Commercial Paper). 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,
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Risk factors
Financial risks
under the same conditions. Chapter 20, Note 32.2 to the
consolidated ﬁnancial statements, provides the maturity on
the Group’s ﬁnancial liabilities. These liabilities do not have
any speciﬁc clause likely to signiﬁcantly modify the terms.
A liquidity alert is sounded when the one-month provisional
cash flow statement reveals that the total short-term
ﬁnancial resources that have been used exceed 50% of all
available ﬁnancial resources (approved credit facilities).
Currency risk
The Services-Mail-Parcels and GeoPost business units
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 2014, the currency impact on revenue
amounted to +€34 million, broken down into +€40 million
on the British pound, and-€6 million on the South African
rand. The impact of currency fluctuations on operating
profit was +€6 million in 2014 (mostly impact from the
pound sterling).
Fo re i g n c u r re n c y - d e n o m i n a t e d d e b t i s s u e s a re
systematically hedged using currency swaps. Therefore,
bonds denominated in pounds sterling are subject to a
100% foreign currency hedge (see Chapter 20, Note 32.4 to
the consolidated ﬁnancial statements).
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 authorised interest rate limit, preventive
transactions are carried out to have again a fixed rate
(see Chapter 20, Note 32.3 to the consolidated financial
statements). The ﬂoating rate portion amounts to around
8% of total debt, excluding debt-matching investments
(PTAs). For La Poste, the PTAs involve investing part of its
cash (€500 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 neutralising interest-rate
risk and beneﬁting from a more attractive compensation
on the matching investments. The impacts from a sharp
decrease or increase in rates therefore remain limited on
the average cost of La Poste’s debt.
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 Chapter 20.1,
Note 32.1 to the consolidated ﬁnancial statements):
f risk of issuers defaulting on their investment securities;
f risk of its market counterparties defaulting on derivative
instruments.
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, Note 32.3 to the
consolidated ﬁnancial statements).
This dynamic management generates an interest rate risk
linked to changes 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
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La Poste’s cash and cash equivalents are placed in interestbearing accounts, term deposits and short-term debt
securities beneﬁting from the purchase of a minimal short
term rating of A2/P2 as well as debt-matching investments
(PTAs) . 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 an
investment portfolio 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.
Risk factors
Financial risks
Its calculation is based on including the CDS for each
security in the portfolio, weighted by its residual maturity.
In the case of investments matching a portion of the bond
debt (see “Interest-rate risk” above), bonds with a maturity
greater than one year have been purchased, primarily
through setting up two dedicated funds amounting to
€150 million each. Speciﬁc limits were developed for these
debt-matching investments, particularly those limiting the
share of banking securities to 50% and those intended for
investment in securities with an A-/A3 rating or above 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-/Baa2, they will be sold
with no override possible.
Moreover, in view of its activity in derivative markets,
La Poste is exposed to a risk of its market counterparties
9
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 La Poste’s counterparties
are subject to systematic collateralisation 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. No Group customer
accounts for more than 10% of consolidated revenue.
Financial risks related to banking activities
Note 33 to the consolidated financial statements
(Chapter 20) quantiﬁes risks of the Banking activities.
Liquidity risk
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.
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.
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.
Due to La Banque Postale’s recent activity as a credit
institution, its balance sheet structure is characterised
by a persistent concentration of assets represented by
investment portfolios and, to a lesser extent, loans to
customers.
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).
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.
These two risks are controlled by two limits that are
periodically reviewed by the ALM (Asset and Liability
Management (1)) Committee.
(1) Balance sheet management (assets/liabilities).
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Risk factors
Financial risks
Interest-rate risk
Interest-rate risk concerns the possibility of La Banque
Postale’s future margins and economic value being affected
by interest- rate fluctuations, in particular due to the
structural nature of the bank. Current interest rate levels
make the risk particularly critical due to the pressure on
interest margins that accompanies it.
The overall interest-rate risk is measured on the total,
comprising 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).
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.
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 home loans and consumer credit.
In this regard, La Banque Postale Financement, La Banque
Postale’s specialist consumer loan subsidiary, has been
applying the same rules as for home loans.
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 businesses
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
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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 segment or their internal rating.
La Banque Postale’s Risk Committee may revise these
diversiﬁcation limits monthly (see Chapter 20, Note 33.3 to
the consolidated ﬁnancial statements).
La Banque Postale’s current holdings of sovereign
debt result from the obligation previously made to
La Poste’s Financial Services to invest in sovereign debt
of OECD countries as speciﬁed in the French decree dated
28 February 2000.
As at 31 December 2014, La Banque Postale’s direct
and indirect exposure to PIIGS amounted to €2.02 billion
in total as a result of direct exposure. Exposure to this
risk is detailed in Note 33.3 to the consolidated ﬁnancial
statements (Chapter 20).
Today, it is markedly less than it was at the beginning of the
crisis, thanks to:
f run-off management from that date: the portfolio has
been signiﬁcantly reduced, and actually reached zero in
late 2012 for Greek securities and reached zero in late
2013 in the case of Portugal;
f measures taken at the EU level and by the European
Central Bank;
f 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.
Risk factors
Legal and regulatory risks
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 La Poste
with a dividend yield that is in line with Group policy and
expectations.
9
The solvency ratio (1) 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. La Banque Postale, which applies CRBF Regulation
No. 2000-03 regarding financial conglomerates, had an
overall solvency ratio of 17.0% and a Common Equity Tier 1
of 12.7% as at 31 December 2014.
The quality of the Bank’s assets, together with the
€633 million capital increase in November 2014, enabled
it to report prudential ratios that exceeded regulatory
requirements in 2014: 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 made up 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.
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%.
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 5.7).
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 segments are made
well aware of compliance issues.
(1) Solvency ratio = prudential capital base/Risk Weighted Assets (RWA).
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9
Risk factors
Legal and regulatory risks
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, La Poste rolled
out a competition compliance programme 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 programme
and communication and training events were provided to
Group employees. A system to signal when competition
regulations are breached was made available to them.
Two GeoPost subsidiaries are under investigation pertaining
to a prior period, and a provision has been made as a
safeguard measure (see Chapter 20, Section 20.4).
The competition compliance programme was strengthened
and a new campaign to raise awareness and train
management was rolled out.
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
responsible use of data. The vehicle of this protection policy
is the Data Protection ofﬁcer (CIL). In 2013, the CIL launched
a programme to raise awareness among all internal
operators and provide them with training. The programme
aims to reinforce awareness of data protection from the
moment services are designed. Lastly, the programme
was partnered by the CNIL, in order to share expertise and
experiences. This programme was continued in 2014.
Regulations applied to the banking sector and risk of non-compliance
La Banque Postale is subject to numerous regulations
governing its banking activities, asset management and
insurance, and despite all of the precautions taken and
controls put in place, a risk of non-compliance cannot be
excluded.
Numerous savings products and services (means
of payment) distributed by La Banque Postale are
regulated, i.e. regulations govern the amounts, duration,
compensation, 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.
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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 over 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 cheque s 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. The risks associated with this dispute are
covered by La Banque Postale in the 2014 accounts via a
provision amounting to €33 million.
Risk factors
Legal and regulatory risks
9
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.).
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.
This regulatory environment is making the marketing of
these products more complex and consequently making
sales line skills increasingly necessary.
In addition, the duty of counsel is a recurring control theme
for bank controllers.
Applicable environmental and social regulations
Environmental standards
As the owner of substantial real estate assets and vehicle
ﬂeet (see Section 5.6), La Poste must comply with legislation
pertaining to energy saving and reducing CO2 emissions.
In addition to the Grenelle Act, the French Act of 16 July
2013 is applicable, Article 40 of which requires all large
companies to undergo by 5 December 2015 an energy audit
for all of their business activities and be liable for a penalty
of 2% of revenue (4% in the event of recurrence) in the event
of non-compliance.
Several other Group companies are also concerned by the
law’s enforcement criteria.
La Poste and its subsidiaries will take the necessary
measures to ensure compliance, but the size and
geographic distribution of both the real estate portfolio
and vehicle fleet involved could make it complicated to
implement these measures from an operational standpoint.
Nevertheless, La Poste’s signature of the ADEME Charter
in December 2014 constitutes a major step in ensuring
compliance with this law.
With regards to adhering to the standards themselves, all
new construction will take them into account.
Regarding the postal vehicle fleet, it includes a growing
number of electric vehicles (more than 5,700 three-and
four-wheel vehicles, more than 15,000 electric bicycles
which brings the Group closer to meeting its commitments
to reducing its energy consumption and greenhouse gas
emissions.
Lastly, the Services-Mail-Parcels and GeoPost business
unit s have put in place a full CO 2 emission offset
programme.
Accessibility standards
The law dated 10 July 2014 allows for an extension of
the compliance deadline, which was initially set for
31 December 2014 by the French Act of 11 February 2005,
for the accessibility of public access buildings (ERP)
for disabled people. This extension is permitted on the
condition that a binding plan and a renovation timetable
are created and strictly adhered to. This is what La Poste
is doing about the portion of its portfolio which has not yet
been adapted (particularly in the rental portfolio). The vast
majority of the directly-owned portfolio is up to standard in
terms of external accessibility.
These risk factors are 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 society 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.
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9
Risk factors
Policy of covering certain risks with insurance
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:
f 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;
f 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.
In 2014, the total premiums for the insurance cover taken
out by the Group amounted to €22.1 million.
Insurance against property damage and operating losses/all security risks
The Group’s casualty insurance programme primarily
consists of a “comprehensive damages except” policy,
which covers all movable and immovable 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. 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:
f 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 is
for additional costs;
f collapse: €30 million in direct damages and additional
costs;
f 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.
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The Services-Mail-Parcels and GeoPost business units,
both in France and abroad, also beneﬁt from their “All Risks
and Operating Losses” property insurance programme for
a total amount of €100 million per claim.
Other property insurance policies mainly involve risk
coverage:
f 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,
programmes and data, and securities held in any way);
f 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;
f 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.
Risk factors
Policy of covering certain risks with insurance
9
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 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
Building insurance
The Group has three contracts, dedicated respectively to:
As owner, the Group takes out building policies including
two insurance programmes to automatically cover any
operation for up to €10 million:
f GeoPost and its French and foreign subsidiaries;
f French postal activities;
f Subsidiaries of the Services-Mail-Parcels business unit.
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.
f one is called “all site risks” to cover material damage
that may occur to buildings under construction;
f 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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9
Risk factors
Policy of covering certain risks with insurance
Events and exhibitions insurance
Deprived urban area insurance (ZUS) and insurance
to protect employees victims of crime (APAVI)
This mandatory insurance covers the Group’s liability as
both organizer and participant.
The Group has not taken out any “key employee” insurance.
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These insurance policies cover material damage and
personal injury to Group employees at work or while
performing their job.
Review of the financial
position and results
10
10.1 Highlights
142
10.2 Summary of Le Groupe La Poste consolidated results
155
10.3 Operating results by business segment
163
10.4 Other key aggregates of the income statement
178
10.5 Debt and ﬁnancial strength
180
10.6 Analysis of the parent company ﬁnancial statements
188
10.7 Post balance sheet events
191
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10
Review of the ﬁnancial position and results
Highlights
The ﬁnancial data in this report are based on the Group’s consolidated ﬁnancial statements prepared in accordance with IFRS.
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.
10.1 Highlights
10.1.1 A new organisational structure to enhance development
In line with the schedule unveiled on 28 January 2014,
Philippe Wahl, Chairman and Chief Executive Ofﬁcer of Le
Groupe La Poste, presented the organisational principles
implemented to spearhead the “La Poste 2020: Conquering
the Future” development project on 4 April 2014.
10.1.1.1 A strong Group
tool, creation of La Banque Postale, modernisation of post
offices, development of Parcels-Express in France and
internationally, etc.) in a universe that had become fully
competitive.
In 2014, faced with the divergence of its business model
due to the combined impacts of the digital revolution and
the economic and ﬁnancial crisis, the Group committed to a
new strategic plan and adopted an organisational structure
with ﬁve business units:
The Group is focusing on strategic functions so as to further
strengthen coordination:
f Services-Mail-Parcels;
f the Executive Committee ensures the strategic
f La Banque Postale;
management of the shared high-priority development
projects outlined in 2014 (see 10.1.1.3) and ensures
cooperation among the business unit s. 50% of the
Executive Committee members’ variable compensation
will be linked to the Group’s objectives;
f the Group’s Human Resources department is responsible
for the strategic management of human resources;
f the Group’s Investment Committee reviews from now
on the major internal capital expenditure projects, as is
already the case for external acquisition projects;
f Group Audit has been strengthened in order to guarantee
consistency in the business units’ audits. The HR and IS
audits have been combined with Group Audit.
f GeoPost;
f La Poste Network;
f Digital Services.
10.1.1.3 Five high-priority cross-entity
development projects and two cross-entity
strategic projects
The Group deﬁned ﬁve major shared high-priority projects
in 2014: they target high-growth potential segments for the
Group, and their strategic management is ensured by the
Group’s Executive Committee. They cut across the various
business units and focus on the following issues:
f e-commerce, which shall strengthen the Group’s
10.1.1.2 Five business units
Le Groupe La Poste’s previous organisational structure,
dating back to 2003, had organised the Group by activity
(Mail, Parcels and Express, La Poste Retail Brand and
Financial Services) and enabled a greater accountability
of operational managers. That organisational structure
was decisive in spearheading the Company’s major
modernisation projects (overhaul of the industrial Mail
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business activities portfolio worldwide and deliver the
innovation required to ensure that it remains the leading
national BtoC operator. The Group speciﬁcally targets
very high-potential areas such as food delivery and
cross-border ﬂows;
f energy transition, which aims to provide offerings by
relying on in-house developed know-how, such as the
optimisation of the energy consumption of buildings, the
ﬁnding of eco-mobility solutions or generating energyefﬁciency reports;
Review of the ﬁnancial position and results
Highlights
10
f urban logistics aimed at improving city deliveries
f reducing headquarters and structure costs incurred,
(“green” mode deliveries (1), clustered deliveries, fewer
unnecessary trips in town, etc.). Various options are
currently being tested in several large metropolitan
cities, including Paris, Lyon, Bordeaux, Monaco and Lille;
starting in 2014, including a working group for the
headquarters relocation project.
f La Poste’s contribution to the modernisation of public
action with the ﬁrst shared initiatives in rural areas via
Public Service Areas and the identiﬁcation of new public
utility missions also in relation to the “energy transition”
and “urban logistics” high-priority projects;
f knowledge of private individual customers to be able to
use the Company’s data sources and better understand
and serve customers.
Two strategic projects are also being carried out:
f building the Social Pact with a strong commitment to
ensure that all employees are perfectly aware of future
businesses and skill sets and by preparing employees
through training;
10.1.1.4 New appointments to the Group
Executive Committee
As part of the implementation of the strategic plan, the
Group announced three new appointments to the Executive
Committee in 2014:
f on 21 January 2014, Jacques Savatier was appointed
Executive Vice-President in charge of regional
development and corporate governance bodies, reporting
to Philippe Wahl, Chairman and Chief Executive Ofﬁcer
of Le Groupe La Poste;
f Nathalie Collin was appointed Executive Vice-President
and Head of Communications on 4 April 2014;
f Yves Brassart was appointed Executive Vice-President
and Chief Financial Ofﬁcer on 4 April 2014.
10.1.2 The new “La Poste 2020: Conquering the Future”
strategic plan
The financial business plan of the “La Poste 2020:
Conquering the Future” strategic plan and the action plan
of each of the five business units were presented to the
Board of Directors on 26 June 2014.
The main lines of the plan (2) are:
f restoring the Group’s sound economic health;
f adjusting the strategic vision to each business unit;
f transforming the Group in depth with all Group
La Poste is taking the necessary steps towards restoring
its sound economic health in a sustainable manner,
guaranteeing the future of the Company and its employees,
through its strategic plan focused on development and the
involvement of all concerned.
Accordingly, it has put a number of action plans in motion
since early 2014, enabling the Group to outperform its plan
by late December 2014 and to record a controlled decrease
in its operating income despite the sluggish economy.
stakeholders.
10.1.3 Economic and ﬁnancial environment
Considering its positioning in the services business, the
Group is generally inﬂuenced in its different businesses by
the economic situation and by the change in the cost of
labour, particularly in France. Oil prices and the US dollar
and pound sterling exchange rates in particular are also
important factors for both the Group’s logistics activities
and its international activities (and speciﬁcally, the strong
presence of GeoPost in the United Kingdom). Lastly, through
its banking activities, the Group is sensitive to changes in
interest rates and, to a lesser extent, to changes in the
ﬁnancial markets.
(1) Deliveries that help keep noise and atmospheric pollution to a minimum.
(2) For further details, see Chapters 3, Section 3.4 and 12 of the registration document.
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Review of the ﬁnancial position and results
Highlights
10.1.3.1 International growth remained
moderate
In 2014, international growth was moderate and slightly
lower than expected at the beginning of the year. While the
US economy continued its good run and growth in China
slowed only gradually as projected, in other major countries,
the economic activities were below expectations, although
in varying degrees (Japan, Brazil, India, Russia, etc.).
10.1.3.2 Upturn runs out of steam
in the Eurozone
Since early 2014, economic activity in the Eurozone has
showed signs of weakening. GDP rose by approximately
0.8% on average for the year. An international environment
slightly less promising than projected and the increase in
geopolitical conﬂicts (particularly the Russian-Ukrainian
conﬂict) weighed on the business climate. Companies were,
in particular, very prudent in their capital expenditures.
The full impact of the depreciation of the euro and the sharp
decline in oil prices in the second half of the year has not yet
been felt entirely. In essence, growth remained constrained
by the need for deleveraging both in the private and in the
public sector, even if ﬁscal policies were less restrictive in
2014 than in the two years prior to that.
dropped slightly year-on-year in December (-0.2%). More
fundamentally, some internal factors are weighing on price
trends: weak economic activity and very slow wage growth,
except in Germany, due to high unemployment and the
quest for competitive advantage.
10.1.3.4 Growth continues to be very weak
in France
The French economy was more or less stagnant over the
entire year. Growth reached an annual average of 0.4%.
Consumer spending held up rather well (+0.6% in 2014)
due to the stronger purchasing power generated by the
plunge in inflation, which dropped to 0.1% year-on-year
in December. On the other hand, households signiﬁcantly
decreased their housing expenses. Corporate investments
also declined again, after having shown signs of recovery
in 2013. Lastly, there was a sharp downward adjustment of
public investment in the spring, as a result of the ﬁnancial
requirements facing local authorities. Otherwise, exports
recorded moderate growth, as the drop in the euro and the
reduced expenses related to the implementation of the CICE
tax credit have not yet fully played out.
In this context, unemployment continued trending upward,
even if the trend was contained early in the year by the
ramp-up of government-subsidised job programmes in
the public sector.
Note that economic polls nevertheless had a slightly more
positive tone at the very end of the year.
10.1.3.3 Plunging oil prices and practically
zero inﬂation in the Eurozone
After a long period of near-stability around $110, the North
Sea Brent price per barrel lost ground and dropped to $64
in December 2014 compared with $111 a year earlier. The
heightened tensions in some oil-producing regions (crisis
in the Ukraine, Libyan political crisis, war in Iraq, etc.) did
not trigger any major upward trends in the price of black
gold because they did not disrupt world market supplies.
Moreover, the rapid expansion of shale oil production in the
United States has shored up supply, while global oil demand
remained rather sluggish and global growth was moderate.
This moderate growth pushed down the prices in dollars of
the other raw materials on average for the year.
This highly disinﬂationary climate brought down inﬂation
to a very low level in the Eurozone. Consumer prices even
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10.1.3.5 Interest rates drop again
in the Eurozone, scattered trends
for stock markets
The slowdown of the upturn and the very small increase
in prices in the Eurozone contributed to interest rates
dropping again, including for loans by European countries
with the lowest rating (except for Greece, where the political
situation has again become uncertain at the end of the
year).
The relapse was all the more signiﬁcant since the difﬁcult
economic context led the European Central Bank (ECB) to
step up its actions to stave off deﬂation: the ECB lowered its
key interest rates in early June and then in early September,
took new so-called “unconventional” measures (long-term
loans to banks and securities purchases) and decided to
charge interest on the deposits made by banks with it in
order to incite banks to lend their excess liquidity. As a
result, interbank rates dropped again in June, to 0.08% in
Review of the ﬁnancial position and results
Highlights
December for the 3-month Euribor monthly average and
to -0.04% for EONIA, which is now frequently negative.
Likewise, short-term rates in the larger Eurozone
countries (Germany and France in particular) dropped to
zero or slightly lower in the autumn. Lastly, the best rated
government bond rates, which had started to recover in
2013, also experienced a drop. The 10-year OAT yield fell in
December to below 1% (monthly average of 0.9% compared
with 2.3% in December 2013) and that of its German
counterpart to only 0.6%.
For stock markets, trends were scattered. In the United
States, stock prices once again made good progress for
the year, on the back of, among other things, the improving
economy. Japan’s stock market in turn beneﬁted from the
fall of the yen. In the Eurozone on the other hand, the slow
growth weighed on trends among stock markets, including
Paris (-0.5% for the CAC 40 for the entire year).
10
10.1.3.6 Rise of the euro against the dollar
followed by a downward adjustment
in May-June
Despite a more buoyant economy in the US, the euro
continued to appreciate against the dollar until early May
and reached close to $1.40. Then, under the effect of
the ECB’s measures among other things, the European
currency lost ground and dropped to $1.23 in December
compared with $1.37 in December 2013 (monthly average).
Against the pound sterling, the euro also depreciated
during the year, from £0.84 in December 2013 to £0.79 in
December 2014, despite a substantial trade deﬁcit in the
United Kingdom. The British currency was supported by
economic recovery in the UK and the anticipated rise in key
interest rates by the Bank of England.
10.1.4 Regulatory environment
10.1.4.1 La Poste publishes Universal
Service performance indicators for 2013
10.1.4.2 Green Book roadmap on parcel
delivery
On 31 March 2014, La Poste published its Universal
Service performance indicators for 2013. The publication,
which was also sent to ARCEP (Autorité de régulation des
communications électroniques et des postes, the French
regulator of the electronic communications and postal
sectors), to the DGE (Direction générale des entreprises,
the French Directorate General for Enterprises), and to
the CSSPPCE (Commission supérieure du service public
des postes et des communications électroniques, the French
Higher Commission for the Postal, Communications and
Electronics Public Service), details the shipping time frames
for the main Universal Service products (Priority Mail, Green
Mail, Registered Mail, industrial mail, EU cross-border mail,
Colissimo parcel at the counter, press, etc.), the accessibility
of the La Poste network through its public outlets and
its street letterboxes, as well as claims processing. The
performance indicators are available on the website (1) of
Le Groupe La Poste.
On 16 December 2013, the European Commission published
its “Roadmap for completing the Single Market for parcel
delivery” to be implemented within 18 months.
The Roadmap is part of the Commission’s work relating
to the development of e-commerce and is based on the
Green Book created in 2012 on the integration of the
parcel delivery market. It proposes new actions to solve
the problems surrounding delivery and the difﬁculties that
consumers and online retailers face in the European Union.
The European postal industry met regularly with
the Commission in 2014 to share the progress of
implementation (improvement of interoperability among
operators, development of the delivery market, etc.).
(1) www.legroupe.laposte.fr
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10.1.4.3 The 2014-2016 third local postal
coverage agreement
The new 2014-2016 local postal coverage agreement was
signed on 16 January 2014. It continues on the lines of
the previous plans aiming at renovating post ofﬁces and
developing partnerships, particularly through the pooling of
public services. Innovation will be encouraged by adapting
postal coverage to the diverse needs of the regions and
populations and by taking into account the technological
developments. The projected amount of resources from the
equalisation fund was renewed for €170 million annually,
i.e. a total of €510 million throughout the duration of the
contract.
With its focus on digital accessibility and pooling, the new
local postal coverage agreement is consistent with Le
Groupe La Poste’s strategic priorities and with the high
expectations of the regions. The scope of intervention of
the equalisation fund has extended into the rural areas and
integrates deprived urban areas according to their current
deﬁnition.
Moreover, the new agreement is characterised by a stronger
representation of Departmental Commissions on Local
Postal Presence (CDPPT – Commissions départementales
de présence postale territoriale) within the National Postal
Coverage Observatory (ONPP – Observatoire national de
la présence postale). The missions of the latter have been
expanded and the CDPPTs have been given new duties.
10.1.4.4 The European Commission has
approved the public service compensation
paid to La Poste
in rural areas. To ﬁnance it, the public service agreement
between the Government and La Poste for the 2013-2017
period states that La Poste will receive a local tax
allowance of approximately €170 million per year (i.e.
€850 million in total over the entire period);
f the press transportation and delivery mission requires
La Poste to offer advantageous regulated rates to
publications of acknowledged general interest. The
agreement signed in 2008 by the French government,
La Poste and press industry unions, states that La Poste
will receive subsidies amounting to €597 million over the
2013-2015 period to carry out this task.
The discussions initiated in late 2013 on changes in press
aid are still ongoing. However, in 2014, the Government
will not pay La Poste the amount initially stipulated in
the agreements relating to the Government contribution
to the press transportation and delivery public service
(€200 million), but rather the amount deﬁned by the 2014
Budget Act, i.e. €150 million.
10.1.4.5 La Poste innovates with a simpliﬁed
mail-parcel range as at 1 January 2015
On 20 June 2014, La Poste announced that it would be
simplifying its mail-parcel product range starting from
1 January 2015, by discontinuing 60 items (1) in order to
meet the needs expressed by its customers including
private individuals, professionals and companies. The new
service offering, which is simpler, more ﬂexible and easier
to understand, was presented to consumer associations and
was well received by them. It is structured around three
new elements:
f the new range simpliﬁes customers’ lives by optimising
On 26 May 2014, the European Commission concluded that
the tax allowance that the French government granted La
Poste for the 2013-2017 period to maintain a high density
of postal coverage was in compliance with European Union
regulations pertaining to State aid. It also authorised the
payment of a subsidy to ﬁnance the press transportation
and delivery mission entrusted to La Poste for the 20132015 period. The Commission ruled that the two forms of
support were not likely to distort competition in an undue
manner within the single market, notably because they only
partially compensate for the net cost of the public service
missions entrusted to La Poste:
f the local postal coverage mission aims to guarantee
the high density of the postal network, beyond the
obligations imposed by the Universal Service, particularly
(1) Change from 79 to 19 items.
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the way they ship mail and parcels. It is structured
around a 3-cm thickness threshold for the shipment of
ﬂat products (CDs, DVDs, small books, etc.). This meets
a need regularly expressed by La Poste’s customers
by giving them more affordable prices when shipping
small-volume low-value objects. Postage for small
items of less than 3 cm can now be applied at either the
correspondence rate (Priority mail/Green Mail/Écopli) or
at Colissimo rate, depending on the customers’ desired
delivery options. Beyond 3 cm, the Colissimo offering
applies;
f the launch of this new range comes with renewed
pre-paid packaging or a large choice of packaging
formats without postage. Packaging without postage is
sold in addition to postage fees at a ﬂat-rate of €1.50;
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f since 1 January 2015, La Poste also offers an enhanced
Universal Service with the creation of a Tracked letter
(with a bar code attached to a regular envelope) delivered
in 48 hours, for the shipping of documents or
merchandise, also not thicker than 3 cm. It costs €3.20
including VAT (packaging included) which is a decrease
of 28 cents compared with the 2014 pre-paid Lettre Max
envelope, which it replaces.
ARCEP issued a favourable opinion regarding La Poste’s
new Universal Service on 18 February 2014 (Opinion
No. 2014-0193).
The customer pathway was restructured also to make it
simpler. In more than 350 post ofﬁces as at 1 January 2015,
customers now have three possible pathways to meet their
mail-parcel needs:
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the Destineo Esprit Libre and Découverte offerings, which
are tailored to SMEs, did not increase. The price increases
were in line with the multiannual price caps No. 12-1353 for
which 2014 was the last year.
Increase in parcel prices
Pricing changes for parcels took place on 1 March 2014
following the favourable opinion of ARCEP (No. 20140164). Prices for mainland France parcels increased 2.9%
on average; however the first weight category (0-250 g)
remained unchanged at €5.50. For international parcels,
where rates have remained unchanged since 2011, prices
increased an average of 1.6%; there were no rate increases
for zone A (Europe), however.
f a “Ready-to-post” area for customers looking for turnkey
solutions: no need to weigh, or pay for postage. For
shipments less than 3 cm thick (and less than 3 kg),
customers can use a number of Pre-paid items, Priority
letter, Green letter and Tracked letter solutions as well
as ﬁve Colissimo Emballage solutions (two-day delivery);
f a “Self-service” area where customers can prepare the
parcels they want to send in all independence. Eight
packaging models without postage are available as
well as a preparation table with a measuring template,
which customers can use for an easier selection of the
appropriate packaging size, either in soft or cardboard
packaging form;
f customers can also package their parcels themselves
and purchase postage as they wish thanks to the various
modes offered to them (counter, vending machine and
www.laposte.fr for online postage).
10.1.4.6 La Poste increases mail and parcel
prices in 2014
Increase in mail prices
La Poste increased prices by 3% on average on 1 January
2014 in order to maintain a high-quality Universal Service.
Green Mail increased from €0.58 to €0.61 and the priority
stamp increased from €0.63 to €0.66. The 5 cents saved
with Green Mail compared with Priority mail remained
unchanged. The price for Online Mail remained at €0.99.
Due to the difﬁcult economic environment, La Poste limited
the increase of industrial mail prices to 1.8%; prices for
10.1.4.7 ARCEP’s agreement on the 2015
price increases
New domestic and international price changes for mail
and parcels took place on 1 January 2015 following
the favourable opinions of ARCEP issued in July 2014
(No. 2014-0846, No. 2014-1009 and No. 2014-1010). All
these changes are within the price caps set in ARCEP’s
decision No. 2014-0841 of 22 July 2014, in relation to the
multiannual price caps for the 2015-2018 period.
Increase in mail prices
On 1 January 2015, La Poste increased its mail prices by 7%
on average. Green Mail increased from €0.61 to €0.68 and
Priority mail from €0.66 to €0.76. The rate savings offered
by Green Mail, currently used by the majority of customers,
is now even greater and rose to 8 cents compared with
Priority mail, versus 5 cents previously.
While France is one of the largest countries in Europe and
La Poste delivers mail six days a week to all points of the
territory, its prices remain comparable to those in other
European countries. Furthermore, these changes have
only had a small impact on the budget of households: the
increase corresponds to less than €4 per household per
year.
To ensure the competitiveness of companies in a sluggish
economy particularly for SMEs and micro-businesses, La
Poste limits the rise in industrial management mail to 3%
and that of advertising mail (direct marketing) to 1.4%.
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Highlights
f on 18 November through a capital increase of
Increase in parcel prices
Likewise, on 1 January 2015, mainland and overseas
territories parcel prices rose, by respectively 2% and 3%,
while international parcel prices were down on average
(-6.6%).
10.1.4.8 Banking environment trends
€633 million, with the transfer of the cash held at post
ofﬁces by the La Poste parent company.
Stress Tests and single supervision of the European
banks
Formally adopted by the European Union in 2013, the Single
Supervisory Mechanism of the European banks materialised
over the course of this year:
f The European Central Bank subjected the major
Basel III and banking resolution
The new international standards on bank capital adequacy,
more commonly known as the “Basel III Agreement” have
been transposed under the form of a “CRR” Regulation
and a “CRD IV” directive within the legal framework of the
European Union. They took effect on 1 January 2014 and
include a transition phase until 2018. These standards
create tighter rules in terms of capital requirements.
At the same time, the European Parliament adopted the
Bank Recovery and Resolution Directive (BRRD) which sets
out the “bail-in” principle according to which shareholders
and creditors, and not depositors, will bear the losses in the
event of default. A minimum eligible capital and liabilities
requirement is in the process of being deﬁned.
In this context and to support its development, La Banque
Postale increased its equity twice in 2014:
f on 11 April by issuing €750 million of Tier 2 subordinated
notes maturing in 12 years;
European Banks to an Asset Quality Review (AQR) and
Stress Tests. The purpose of the Review was to assess
the soundness of the banks. The ﬁndings published in
late October were proof of La Banque Postale’s good
credit risk control and of its sound ﬁnancial structure (1).
f On 4 November, after this initiative was completed, the
European Central Bank ofﬁcially assumed supervision of
La Banque Postale and 127 other major European banks,
in accordance with the Single Supervisory Mechanism
schedule.
10.1.4.9 Competitive environment
An inquiry by the French Competition Authority opened
in 2010 concerning the CEP sector in France comprises
several express delivery operators, including Chronopost
and Exapaq.
A statement of objection memo was communicated on
30 June 2014, which led the Group to create a provision for
risk in the entities concerned as a precaution.
10.1.5 External growth and partnerships
10.1.5.1 Services-Mail-Parcels
Groupe Amaury and Le Groupe La Poste’s press home
delivery companies, SDVP and Neopress respectively,
announced that they had ﬁnalised their merger agreement
in September 2014. The new joint venture, Proximy, thus
became the leader in press home delivery in the Greater
Paris region, and is 75%-held by Groupe Amaury and 25%held by Le Groupe La Poste.
(1) The detailed results are available at https://www.labanquepostale.fr
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The Company’s goal is to reinforce the range of home
delivery services offered to press publishers and
subscribers, and to develop new service offerings in the
local delivery sector in the Paris greater region (combined
annual volume of more than 130 million press copies) and
in Oise. This alliance of the two main players in the Paris
greater region press home delivery sector reafﬁrms and
reinforces Le Groupe La Poste’s commitment to newspaper
and magazine home delivery.
Review of the ﬁnancial position and results
Highlights
10.1.5.2 GeoPost
10.1.5.3 La Banque Postale
GeoPost and Neopost sign an agreement to create
and operate automated lockers
Acquisition of Soﬁap
On 28 January 2014, GeoPost and Neopost, the European
market leader in mailroom equipment, signed an agreement
to create and operate secure automated lockers for the
delivery and return of parcels in France. 1,500 lockers will
be rolled-out by 2016 and up to 3,000 by 2019.
In a world where e-commerce is rapidly expanding, the
lockers located in easily accessible places, such as post
ofﬁces, will provide parcel customers with a ﬂexible and
secure solution.
DPD Polska acquires Siodemka
On 11 April 2014, DPD Polska, a subsidiary of GeoPost in
Poland, signed a purchase agreement to acquire 100%
of the share capital of the Polish operator Siodemka
from Abris Capital Partners investment funds. Following
the approval of this acquisition by the local competition
authorities, Siodemka was consolidated in the Group’s
ﬁnancial statements in October 2014.
Siodemka , one of the leaders in the domestic parcels
market in Poland, generated €80 million of revenue in
2013. Siodemka delivers 30% of its total parcel volume in
the BtoC segment and has a customer base that is very
complementary to that of DPD.
This acquisition will allow DPD Polska to significantly
strengthen its position in the express market in Poland
by becoming one of the top two leaders in the domestic
market.
GeoPost strengthens its equity investment
in Worldnet Direct in the United Kingdom
In early May 2014, GeoPost announced that it had increased
its equity investment in the share capital of the British
logistics service provider Worldnet Direct (WnDirect) to
63.5%. WnDirect, formed in November 2011 and specialising
in delivery for e-retailers, achieved €69.8 million in revenue
in 2014. The company offers an international air-based
home-delivery solution for BtoC parcels specially designed
to meet the specific needs of the e-commerce market:
reliability, speed and ﬂexibility.
WnDirect operates in the United Kingdom and in the United
States. It also offers delivery solutions to Russia, China,
Brazil and the Middle East, and plans to open additional
processing centres worldwide.
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On 20 May 2014, La Banque Postale announced the
acquisition of an equity investment in Soﬁap from Crédit
Immobilier de France and SNCF. Now 66%-held by La
Banque Postale and 34%-held by SNCF, Soﬁap manages
approximately €1.5 billion in home loan outstandings
with more than 24,000 customers, primarily employed by
SNCF, relying on a team of nearly 120 people working at its
headquarters and at some 30 branches in France.
For La Banque Postale, this acquisition falls under its
development dynamics in the private individuals market
and more particularly in home loans. With Sofiap, La
Banque Postale is also continuing to bolster its social
home ownership activities. Since November 2014, Soﬁap
has offered contractual home loans to Gaz de France
employees.
Negotiation in the area of asset management
Started in late 2014, the negotiations in the area of asset
management are expected to culminate in two agreements
in the ﬁrst quarter of 2015.
In December 2014, La Banque Postale entered into
exclusive negotiations with Aegon Asset Management with
the aim of concluding an industrial partnership which would
enable La Banque Postale Asset Management (LBPAM) to
develop and reinforce its expertise in the French market and
give it access to an international distribution network. With
this transaction, Aegon Asset Management would take a
25% equity investment in the share capital of LBPAM.
At the same time, in February 2015, La Banque Postale
and Malakoff Médéric announced a planned merger of
their subsidiaries LBPAM and Fédéris Gestion d’actifs in
order to develop a major asset management hub to better
serve their customers with an expanded product range, and
speciﬁcally SRI. This transaction would result in Malakoff
Médéric acquiring a 5% equity investment in LBPAM’s share
capital.
Company health insurance partnership project
Following talks started in 2014, Malakoff Médéric, La
Mutuelle Générale and La Banque Postale announced
on 1 February 2015 their company health insurance
partnership.
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The partnership is in line with the will of the three groups
to share their know-how to develop a new group health
insurance offering and make it available to La Banque
Postale’s customers. Available starting from 1 April
2015, the offering will be tailored to the needs of microbusinesses and SMEs as part of the compulsory extension
of supplementary health insurance to all employees, on
1 January 2016.
The offering will be provided by La Banque Postale
Assurance Santé, an entity in which the Malakoff Médéric
– La Mutuelle Générale grouping will hold 49%, while La
Banque Postale will continue to hold 51% of the capital.
It will be distributed by La Banque Postale throughout the
country through its local distribution network.
10.1.6 New products and services
10.1.6.1 20 projects for 2020: a true
success, more than 650 applications ﬁled
postal profession, its modernity and its ability to respond to
customers’ new expectations in terms of local services and
trusted relationships.
As part of the “La Poste 2020: Conquering the Future”
strategic plan, the “20 projects for 2020” transformation
and innovation programme fostering the entrepreneurship
of La Poste’s employees has been launched.
There are three applications available on the terminals, at
this stage, linked to delivery rounds: one allows for tracked
items to be signed for, one is dedicated to proxies and a
third manages mail forwarding.
Postal workers filed more than 650 applications on the
website of the “20 projects for 2020” competition, the
majority of which involve new service offerings (50% of the
applications ﬁled) but also electronic services, new services
for postmen, delivery innovations, services to e-retailers,
new banking offerings and general-interest initiatives.
Among the 30 projects short-listed in Paris on 12 November,
the Group selected 10 ﬁnalists. The winners selected from
these ﬁnalists will be provided the means to develop their
project within La Poste and will receive support for a period
of 6 to 18 months.
The Services-Mail-Parcels business unit is also continuing
to consider and implement new home services for private
individuals, notably Cohesio (a service involving regular
home visits by postmen to households with isolated and/
or vulnerable members), Releveo (a service to read energy
meters on behalf of companies in the sector), Facileo
delivery with messages (delivery of items or parcels with
a message delivered to the customer by the postman),
damage appraisal photos for insurance companies, Equipeo
(technical installation services, job offer listing services),
Porteo (various home delivery services, groceries, books,
CDs and medication), etc. For example, in the Ain and
Haute-Savoie departments, the business unit is testing
home delivery of groceries services to Super U supermarket
customers.
Each year, until 2020, a new programme season will
provide support to postal workers’ teams and their new
development projects for La Poste, postal workers and
their customers. Approximately three to four projects will
be selected per year, i.e. 20 projects by 2020.
10.1.6.3 Expansion of GeoPost activities
10.1.6.2 Development of the connected
postman’s activities
Within the Services-Mail-Parcels business unit, Mail is
continuing to roll out its new tool, Facteo. This equipment
helps postmen with their daily operations and offers new
functionalities for convenience, quality and innovation to
serve all of La Poste’s customers, from shippers to endcustomers.
At end 2014, approximately 45% of postmen were using
Facteo, and all the postmen rounds will be covered by end
2015. This investment is a strong sign of the future of the
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Roll-out in Europe of the Predict service
Predict is a service that allows customers to choose their
delivery time. A text message (SMS) and/or email is sent
to the customer with a speciﬁc time-slot proposed for a
determined day to deliver the package and offers the option
of changing the delivery to another day (rescheduling).
Launched in the United Kingdom, Predict has been rolled
out in 18 countries in Europe. In addition, Predict is available
not only for domestic shipments, but also for international
shipments in most countries.
Review of the ﬁnancial position and results
Highlights
DPD has also launched Saturday delivery in Germany (for
some regions in 2014 and throughout the country in 2015)
and Sunday delivery in the United Kingdom.
Development of the Pickup Services network
GeoPost, thanks to its subsidiary Pickup Services, offers
its customers a ﬂexible and competitive delivery solution
via networks of pick-up and drop-off points. This dense
network brings more convenience and accessibility to all
Group customers. In response to growing demand, GeoPost
currently has a network of more than 16,000 pick-up and
drop-off points in Europe (primarily in France, Benelux,
Germany and Switzerland).
On 4 June, Pickup Services launched an innovative offering
called “La Navette Pickup” (the pick-up shuttle). It allows
private individuals to send parcels through a network of
local shops spread out over France.
Currently available at 4,000 pick-up and drop-off points, “La
Navette Pickup” will be offered at the 7,000 pick-up and
drop-off points in the French network in the coming months,
followed by networks in neighbouring countries.
10.1.6.4 Continuing to build the Network’s
attractiveness
10
terminals enabling them to better meet the customers’
needs and to strengthen La Poste’s image as a modern
company. This way, some transactions can be made from
points other than the desk or the counter (item pick-up
or authentication of IDs, parcel drop-off after using the
automated postal machine, etc.). At end 2014, 59 post
offices were equipped with 188 touch-screen terminals;
the roll-out of terminals is expected to continue over the
coming years.
10.1.6.5 La Poste Mobile, a competitive
and innovative operator
Present in the market since May 2011, La Poste Mobile
passed the one million customer mark at the beginning of
the year and has continued its commercial development to
reach 1.15 million lines at end 2014.
Launch of 4G offerings
On 27 January 2014, La Poste Mobile launched affordable
4G offerings with the support of its partner SFR’s network:
its three contract plans with mobile phones (2 GB and more)
now all include 4G without any price increase and the SIMonly plans are now enhanced with a new 24/7 4G offering
with 5 GB of data. Thanks to the SFR network, the 4G
offerings cover over 50% of the population and practically
all cities with more than 50,000 inhabitants.
3D Printing
Since late 2013, customers have been able to use 3D
printing in three Paris ofﬁces and since late 2014 in one
ofﬁce in the Gironde department. In each of these ofﬁces,
a service area for 3D printing has been created to allow
customers, private individuals as well as professionals,
to get advice or to design objects from their own 3D ﬁles,
from a catalogue with dozens of references, or even from
a drawing. The project is expected to undergo targeted
development in different cities in France.
La Poste Network’s digital transformation
Tested initially in late 2013 in 50 Local Postal agencies
(APC), digital tablets were rolled out in 2014 in nearly 1,000
public outlets. They are provided to customers as a free
self-service and can be used to access the online services of
Le Groupe La Poste (www.laposte.fr, www.labanquepostale.
fr, www.lapostemobile.fr, www.colissimo.fr, etc.) as well
as other public service sites such as those of the Family
Beneﬁts Fund (CAF) or the French Employment Agency.
La Poste Network’s digital transformation project is also
implemented by providing counter clerks with touch screen
Launch of Quatro offerings
Launched in April 2013 in partnership with SFR, the Quatro
offering (quadruple play offering with Internet, television,
fixed telephone and mobile) has been a true success:
45,000 boxes were sold in 2014 (after 20,000 in 2013).
Launch of a diverse range of offerings
On 7 April 2014, La Poste Mobile launched its “International
Pre-paid” offering intended for French customers wanting
to keep in touch with their friends and family living abroad.
This offering was an immediate hit with 149,000 pre-paid
lines sold at end 2014.
To reach out to a young customer base and meet its needs,
on 1 September, La Poste Mobile also launched a special
offering together with Universal Music. The product range
offers an unlimited online music listening service from a
catalogue containing several million songs. It was launched
at a very affordable price and in addition offers a number
of beneﬁts related to the world of music such as concert
seats, ﬁrst-runs, etc.
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10.1.6.6 Initiatives of the Digital Services
business unit
Redesign of the www.laposte.fr shopping site
In 2014, the www.laposte.fr website was fully redesigned
and revamped. It is now the first stop to get the various
services offered by La Poste parent company for mail and
parcels with links to the dedicated sites of the other Group
brands and subsidiaries such as La Banque Postale or
Chronopost. This action, which is intended to develop La
Poste as a digital brand, is in line with the missions of the
Digital Services business unit.
With a more uniform graphic presentation, regardless of the
medium used (computer, tablet or mobile) and a simpliﬁed
customer pathway, visits to the www.laposte.fr website have
increased and currently the number of unique visitors is
close to 11.7 million.
Contents for the Group’s activities and brands will continue
to be enhanced in order to increase interaction with users.
A new webmail service for La Poste
La Poste is offering a new version of its laposte.net email
service with a totally new interface and new functionalities.
This new webmail service offers more streamlined, rapid
and mobile navigation thanks to an interface that allows
optimal navigation on both ﬁxed Internet and mobile. This
new version will be rolled out to all users, i.e. to more than
3.4 million accounts.
Laposte.net is currently the 4th leading webmail in France.
With 100% of its data hosted in France, and with the
integration of the Digiposte digital secure safebox, this
service is in keeping with La Poste’s commitments, which
places trust at the heart of both its physical and its digital
solutions.
10.1.6.7 Enlargement of La Banque
Postale’s portfolio
Launch of Stock Savings Plans for SMEs (PEA-PME)
Since 5 May 2014, La Banque Postale has been marketing
the Stock Savings Plans for SMEs (PEA-PME), the new
securities account instituted by the 2014 Budget Act,
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whose aim is to help small, medium and intermediatesized businesses obtain ﬁnancing. By doing so, La Banque
Postale is reafﬁrming its “Civic-Minded Bank” commitment,
as with this product, its customers will be able to diversify
their ﬁnancial assets while helping to ﬁnance French SMEs/
ISEs. As part of the Stock Savings Plan for SMEs (PEAPME), La Banque Postale offers to invest in new Tocqueville
SME funds managed by Tocqueville Finance, its subsidiary
specialised in asset management of small and mid caps.
Enhanced product range for high net-worth
customers
During the ﬁrst half of 2014, La Banque Postale enhanced its
product range for high net-worth customers with the launch
of three high-end life insurance policies: Cachemire 2 and
Cachemire Patrimoine, offered in partnership with CNP,
as well as Satinium, a discretionary asset management
contract.
Development of the range of services
for smartphones
La Banque Postale has launched a mobile application
allowing customers to manage their pre-paid cards from
anywhere at any time on their smartphones. In May 2014,
La Banque Postale also launched the contactless payment
service on smartphones.
Partnership with the EIB and investments in the healthcare, training and high speed broadband sectors
La Banque Postale and the European Investment Bank
announced in November that they were committing
€300 million to support three large-scale programmes
launched by the Government: the Hospitals of the Future
plan, the Very High Speed Network programme and the
Schools and Youth Employment programme. These projects
showcase La Banque Postale’s commitment as a “CivicMinded Bank”.
Creation of “La Banque des Pros”
La Banque Postale launched in the spring the “Banque
des Pros” (Bank for Pros) programme for artisans and
small businesses. The ﬁrst class of Professional Customer
Managers graduates was set up in October. Becoming the
bank for professionals is one of the strategic objectives of
Le Groupe La Poste and La Banque Postale by 2020.
Review of the ﬁnancial position and results
Highlights
10
10.1.7 The Group’s commitment to responsible development
Taking into consideration the social and environmental
issues is central to the strategic approach (see Chapter 5,
Section 5.8). In 2014, the Group continued to implement its
policy around the four areas outlined below.
10.1.7.1 Design of sustainable
and eco-designed offerings
Several eco-socio-designed products were developed such
as Mediapost’s (1) solidarity printing offerings, the Ecoveo
logo that can be placed on Mail products to indicate their
carbon neutral nature, or also the “Solidarity Interest
Services” (2) and the “EthicEuro” (3) range of funds developed
by La Banque Postale, the leading French bank in terms of
commitment to sustainable development (4).
10.1.7.2 Energy transition
and urban logistics
With respect to supply chain changes, La Poste announced
the development of freight train delivery and a multipurpose multi-modal transportation platform, to optimise
its transport ﬂow-sheet, develop new activities and reduce
its CO2 emissions.
The Group also continued to apply its electric vehicle
acquisition policy in France (1,615 vehicles in 2014)
and confirmed its commitment to reduce the energy
consumption of buildings by taking part in the CUBE 2020 (5)
competition that fosters the development of eco-friendly
practices.
10.1.7.3 Development of solidarity actions
and general interest solutions
The Group is committed to the Silver economy: its Cohesio
Digital project, aiming to create a package of services to
encourage “living well at home”, social ties and home
support for elderly people, received a Government award
in the 2030 Global Innovation Competition. La Poste is also
a supporter of the collaborative economy (as a participant
in the OuiShare Fest, in May 2014) and of the Social and
Solidarity Economy (ESS) with the signing in October 2014
of the Alliance Dynamique with the ESS network leaders in
order to research potential new solutions of public interest.
10.1.7.4 Commitment in support
of vulnerable populations, accessibility
for all and access to jobs
The Group continued to pursue its commit ment to the
fight against social isolation (signature of the Monalisa
Charter – Mobilisation nationale contre l’isolement des
âgés or National Mobilisation against the Isolation of the
Elderly – in January 2014), to preventing situations of
ﬁnancial vulnerability (ﬁnalisation of the roll-out of l’Appui,
a telephone platform for banking and budget advice and
orientation), and for the professional integration of young
people (Mediapost and EPIDE partnership in July 2014 (6) and
renewed its partnership with the “second-chance schools”,
Écoles de la seconde chance (E2C)).
(1) CO2 neutral offering (paper, printing, energy, transport and delivery), recipient of an award from the Décisions Achats magazine (bronze trophy in the
“Eco-responsible Purchasing” category).
(2) Option to transfer all or part of the interest on a savings account (LBP adds 10%) to a charity.
(3) Based on a composite index of European ESG (environmental, social and governance)-compliant ethical companies.
(4) Annual survey conducted by IFOP, “Sustainable Development Observatory”. 6th-time recipient of the award.
(5) Competition organised by IFPEB: Institut français pour la performance énergétique du bâtiment (French Institute for Energy Efﬁciency in Buildings).
(6) Mediapost received an award at the 9th Diversity Trophies in the “Training and Mentoring” category by the consulting ﬁrm Diversity Conseil RH.
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Review of the ﬁnancial position and results
Highlights
10.1.8 La Poste, a responsible employer
The “La Poste 2020: Conquering the Future” strategic plan
includes an important social component with four major
areas aimed at ensuring a future for each employee. Since
2014, the Group has taken many initiatives in each of the
areas described below.
f enhanced healthcare at work with 18% of additional
employees who had their medical visit compared with
last year.
10.1.8.3 Social dialogue
10.1.8.1 Training and professional
development
In this area, the following is worth noting for the year under
review:
f professional elections from 1 to 4 December for the next
Focus was placed on these areas through the following
speciﬁc actions: f creation of a training school shared by La Banque
Postale and the Network, charged with developing the
skill sets of postal workers for the banking sector;
f finalisation of job family classification at Group level,
four years. For the ﬁrst time, the elections were done
entirely by electronic vote. The participation rate for
National Technical Committee representative elections
was 75.6%;
f the signature of eight agreements, including a
unanimous one regarding housing.
making it possible to develop cross-functional career
paths;
f second edition of the Career Development Week from 13
to 17 October throughout the country.
10.1.8.4 Professionalisation of HR
and management
This initiative continued in 2014 with speciﬁcally:
10.1.8.2 Health and quality of life at work
In this connection, La Poste has implemented:
f a help and support line for all employees. This free,
anonymous and conﬁdential service is available 24/7;
f a complete system to ﬁght against harassment;
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f training of 1,100 local HR staff;
f training of new managers at the Institute of Management.
Lastly, Le Groupe La Poste met its commitment to recruit
15,000 new employees in the 2012-2014 period. In relation
to this, La Poste converted 1,379 ﬁxed-term contracts and
370 subsidised future job (contrats d’avenir) contracts into
permanent contracts in 2014.
Review of the ﬁnancial position and results
Summary of Le Groupe La Poste consolidated results
10
10.2 Summary of Le Groupe La Poste consolidated results
10.2.1 2013 pro forma ﬁnancial statements
Following the application of new IFRS standards IFRS 10
“Consolidated financial statements” and IFRS 11 “Joint
Arrangements” on 1 January 2014, a pro forma income
statement and a cash flow statement were prepared as
at end-December 2013. Opening net debt (1) and equity
as at 1 January 2014 and as at 1 January 2013 were also
restated (2).
Le Groupe La Poste chose to include its share in the results
of its equity-accounted partnerships under “Operating
profit/(loss) after share of net profit/(loss) of companies
under joint control”.
10.2.1.2 Impacts of IFRS 11
After a review of its other partnerships, the Group
concluded that most of them can be classified as joint
ventures according to IFRS 11. The subsidiaries that were
previously consolidated proportionately are now posted to
a special line item in the Group’s income statement, based
on their share of net proﬁt/(loss) (equity method). The main
subsidiaries concerned are:
f within the Services-Mail-Parcels business unit: Asendia;
f within the GeoPost business unit: Armadillo Bizpak and
DTDC;
10.2.1.1 Impacts of IFRS 10
The entry into force of IFRS 10 led to the full consolidation
of La Banque Postale Prévoyance (La Banque Postale
business unit ), whereas it was previously consolidated
proportionately.
f within the La Poste Network business unit: La Poste
Telecom (La Poste Mobile);
f within Real Estate: SCI Bataille and SCI Cler.
(1) Group net debt does not take into account La Banque Postale, for which this concept is not relevant.
(2) For further details, see Note 3 to the consolidated ﬁnancial statements, Chapter 20 of the registration document.
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Summary of Le Groupe La Poste consolidated results
10.2.1.3 Table reconciling the 2013 published ﬁnancial statements and the pro forma
ﬁnancial statements
Income statement as at 31 December 2013
(€ million)
Operating revenue
Operating expenses
Operating proﬁt
Share of net proﬁt/(loss) from companies under joint control
Operating proﬁt (after share of net proﬁt/(loss)
from companies under joint control)
Financial proﬁt/(loss)
Proﬁt before tax
Income tax
Application
IFRS 10 & IFRS 11
31/12/2013
pro forma
22,084
(369)
21,715
(21,314)
365
(20,949)
770
(4)
766
0
12
12
770
8
778
(223)
0
(222)
547
9
556
(127)
2
(125)
Share in proﬁts of other equity associates
215
0
215
CONSOLIDATED NET PROFIT/(LOSS)
635
11
646
Net proﬁt Group share
627
(4)
624
8
14
23
Non-controlling interests
156
31/12/2013
as reported
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LE GROUPE LA POSTE
Review of the ﬁnancial position and results
Summary of Le Groupe La Poste consolidated results
10
Change in cash position as at 31 December 2013
31/12/2013
as reported
Application
IFRS 10 & IFRS 11
31/12/2013
pro forma
Cash ﬂows from operating activities
1,056
(38)
1,018
Cash ﬂows from investing activities
(€ million)
(1,561)
12
(1,548)
Free cash ﬂows
(505)
(25)
(531)
Dividends paid
(175)
0
(175)
Net interest paid
(172)
1
(171)
Net free cash ﬂows
(852)
(25)
(876)
Capital increase
600
0
600
Impact of changes in consolidation on gross debt
(15)
1
(14)
(9)
0
(9)
Unrealised gains and losses relating to changes in fair value
(28)
0
(28)
Increase in ﬁnance lease liabilities
(17)
0
(17)
8
(0)
8
(5)
4
(1)
Purchase of non-controlling interests
Change in accrued interest not yet due on ﬁnancial instruments
Other items
CHANGE IN NET DEBT
(318)
(19)
(337)
Net debt at the beginning of the period
3,460
8
3,468
Net debt at the end of the period
3,778
28
3,806
Change in cash ﬂows from ﬁnancing activities
(357)
10
(347)
Change in ﬁnancial assets used in cash management
157
(0)
157
Other ﬂows
513
(10)
503
CHANGE IN CASH AND CASH EQUIVALENTS
(4)
(19)
(23)
Opening cash and cash equivalents
2,167
(40)
2,127
Closing cash and cash equivalents
2,163
(59)
2,104
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Summary of Le Groupe La Poste consolidated results
Equity as at 31 December 2013
(€ million)
Opening consolidated equity Group share
31/12/2013
as reported
Application
IFRS 10 & IFRS 11
31/12/2013
pro forma
7,470
0
7,470
Capital increase
600
0
600
Net proﬁt Group share
627
(4)
624
(171)
0
(171)
Dividend payments
Unrealised gains and losses on ﬁnancial instruments
54
(22)
32
Translation adjustments
(75)
0
(75)
Actuarial differences
(79)
0
(79)
Other items
Equity Group share
Non-controlling interests
CONSOLIDATED EQUITY (CLOSING)
34
181
215
8,460
156
8,615
57
178
235
8,516
334
8,850
10.2.1.4 New pro forma segment reporting
The retroactive application of IFRS 10 and 11 as well as the implementation of the Group’s new organisational structure
announced on 4 April 2014 led the Group to prepare pro forma data for its segment reporting.
This pro forma data is presented in Section 10.3 “Operating results by business segment”.
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Review of the ﬁnancial position and results
Summary of Le Groupe La Poste consolidated results
10.2.2 Le Groupe La Poste consolidated results
(€ million)
31/12/2014 31/12/2013
pro forma
Change at constant
scope and exchange
rates (vs pro forma)
Change
vs pro forma
(€m)
(in %)
(€m)
(in %)
Group operating performance
Operating revenue
Operating proﬁt (after share of net proﬁt
of companies under joint control)
Operating margin
Net proﬁt Group share
Net margin
22,163
21,715
+449
+2.1%
+206
+0.9%
719
778
-59
-7.6%
-77
-9.9%
3.2%
3.6%
513
624
2.3%
2.9%
-0.3 pt
-111
-0.4 pt
-17.7%
-129
-20.5%
-0.6 pt
-0.6 pt
Key ﬁgures – La Banque Postale
Net Banking Income
5,673
5,574
Operating ratio
82.7%
84.7%
-2.0 pt
Common Equity Tier 1
12.7%
10.1%
+2.6 pt
75%
67%
+8.0 pt
Loan to deposit ratio
+100
+1.8%
+66
+1.2%
Ratio Common Equity Tier 1 with application of interim measures.
31/12/2014
(€ million)
31/12/2013
pro forma
Change vs pro forma
(€m)
(in %)
Key ﬁnancial indicators
Net debt
4,005
3,805
200
+5.3%
Equity Group share
9,088
8,615
+473
+5.5%
150
(531)
+681
n.s.
Free cash ﬂows
Net debt/Equity Group share
0.44
0.44
-0.1 pt
Net proﬁt/Equity Group share
5.6%
7.2%
-1.6 pt
n.s.: not signiﬁcant.
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Review of the ﬁnancial position and results
Summary of Le Groupe La Poste consolidated results
10.2.2.1 Operating revenue
Le Groupe La Poste’s operating revenue totalled €22,163 million at end-December 2014, up €449 million compared with
December 2013, for the most part due to the buoyant activity of the GeoPost and La Banque Postale subsidiaries.
31/12/2014
(€ million)
Services-Mail-Parcels
31/12/2013
pro forma
(€m)
(in %)
(€m)
(in %)
-1.7%
11,395
11,599
-204
-1.8%
-202
GeoPost
4,921
4,342
+579
+13.3%
+368
+8.4%
La Banque Postale
5,673
5,574
+100
+1.8%
+66
+1.2%
539
549
-9
-1.7%
-9
-1.7%
Digital Services
Other segments and intercompany
OPERATING REVENUE
(365)
(349)
-16
+4.6%
-17
+5.0%
22,163
21,715
+449
+2.1%
+206
+0.9%
More specifically, the Group’s €44 9 million increase in
operating revenue breaks down as follows:
f growth of €206 million, or 0.9% at constant scope and
exchange rates;
f consolidation scope effects of €208 million, originating
for the most part from GeoPost (€175 million, of which
€96 million attributable to the delayed impact of
acquisitions made in 2013) and to a lesser extent from
La Banque Postale (€34 million);
f an exchange rate gain of €35 milli on, including a
favourable impact of €40 million on the pound (GBP)
and an unfavourable impact of -€6 million on the
South African Rand (ZAR), and +€1 million for the other
currencies.
Operating revenue for 2014 was affected by the following:
f a decrease in the Services-Mail-Parcels business
unit’s revenue of 1.8% to €11,395 million. Mail revenue
of the parent company decreased by €182 million to
€9,328 million. The structural decline in volumes,
amplified by the globally difficult economic climate
affected revenue by -€446 million. This was partially
offset by +€236 million as a result of the price increase
that took place on 1 January 2014.
Subsidiaries positioned in logistics, e-logistics and direct
marketing activities, recorded revenues down by 2.8%
160
Change at constant scope
and exchange rates
(vs pro forma)
Change
vs pro forma
Registration document 2014
LE GROUPE LA POSTE
compared with 2013, at €501 million. This change is the
result of contracting revenues at Mediapost France, with
a particularly constrained advertising market in 2014
and moderate development of ViaPost’s e-commerce
logistics business.
For the Parcel s d ivision , revenues were practically
unchanged in 2014 at €1,566 million (€1,574 million in
2013). This change is partly due to a slight contraction in
volumes related to a restructuring of its historic portfolio
and heightened competition. The unfavourable impact
on volumes was offset by the price adjustments made
starting in late 2013 as well as by growth in exports;
f G e o P o s t ’s re v e n u e g re w 1 3 . 3 % a n d re a c h e d
€4,921 million. Restated for the scope and exchange
rates effect, organic growth stood at €368 million,
i.e. 8.4%. The growth is driven by an active policy of
innovation and quality of service: development of pickup and drop-off points, Saturday delivery in Germany,
Sunday delivery in the United Kingdom, generalisation of
the Predict system which can be used to select one-hour
delivery windows, etc. This policy translates by a positive
volume effect of €392 million (+9%) with an increase for
all the countries which was particularly strong in the
United Kingdom where sales rose by nearly 20%. Mix
effects as well as downward pressure on prices both had
a slightly negative impact on revenue;
Review of the ﬁnancial position and results
Summary of Le Groupe La Poste consolidated results
f in this environment of low interest rates, La Banque
Postale’s NBI grew overall by 1.8% and reached
€5,673 million for 2014. At constant scope and after
restatement of the home loan savings provision, it
rose by 4%, i.e. €220 million. Retail Banking NBI, after
restatement of the home ownership savings provision
grew by 3.5% due to the aggressive customer acquisition
policy and the ramp-up of financing for legal entities
and consumer credit. NBI of the Asset Management
and Insurance divisions also grew sharply (by 10.3% and
13% respectively);
f revenue f rom the Digital Services business unit was
€539 million, down 1.7%. The s tructural decline in
traditional activities (primarily cheque processing)
was only partially offset in 2014 by the roll-out of new
offerings such as Docapost’s data processing platforms
and Mediapost Communication’s integrated “Advice
and Data” offerings. In addition, in 2014 the Group
revamped its online shopping site www.laposte.fr and its
www.laposte.net webmail service.
10
10.2.2.2 Operating proﬁt
The Group’s operating proﬁt after share of net proﬁt/(loss)
from companies under joint control totalled €719 million
at end-December 2014, a limited decrease of €59 million
compared with 2013.
In 2014, the Group’s performance was affected by a difﬁcult
economic and ﬁnancial environment and a rapidly declining
mail volume (down 5.8% for 2014). However, the action plans
taken on both in terms of innovation and development and
in terms of controlling costs, in line with the key focus areas
defined in the Group’s new strategic plan, have already
contributed to limiting the decrease in operating proﬁt in
2014.
Change at constant
scope and exchange
rates (vs pro forma)
Change
vs pro forma
31/12/2014
31/12/2013
pro forma
(€m)
(in %)
(€m)
(in %)
Services-Mail-Parcels
419
546
-127
-23.2%
-126
-23.2%
GeoPost
284
316
-32
-10.0%
-41
-12.7%
La Banque Postale
842
726
+116
+16.0%
+106
+14.6%
La Poste Network
25
33
-9
-26.2%
-9
-26.2%
(62)
7
-70
n.s.
-70
n.s.
(€ million)
Digital Services
Real estate
60
130
-71
-54.3%
-71
-54.3%
Support and Structure
(154)
(194)
+40
+20.4%
+40
+20.4%
Unallocated and eliminations
(694)
(786)
+93
+11.8%
+94
+11.9%
719
778
-59
-7.6%
-77
-9.9%
OPERATING PROFIT/(LOSS)
after share of net proﬁt/(loss) from companies
n.s.: not signiﬁcant.
The operating profit highlights by business unit are as
follows:
f Services-Mail-Parcels: operating proﬁt of the business
unit fell €127 million to €419 million in 2014.
Price increases, innovation, new services and special
efforts to control costs have signiﬁcantly eased the effect
of lower mail volumes and, to a lesser extent, of lower
parcel volumes on operating profit. The particularly
difﬁcult market environment for advertising materials
should also be noted;
f GeoPost posted operating profit down by €32 million
for 2014 to €284 million. Nevertheless, restated for
the provision recognised as a precaution following the
Competition Authority’s inquiry into various players in
the transport and courier market in France, GeoPost’s
operating proﬁt was up. The increase in operating proﬁt
was supported by strong revenue performance, despite
the costs incurred in 2014 in various innovative projects
intended to support volume growth in the coming years;
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Review of the ﬁnancial position and results
Summary of Le Groupe La Poste consolidated results
f la Banque Postale business unit ’s operating profit
increased by €116 m illion in 2014 to €842 mi llion
showing the strength of its model in an environment
dominated by low rates, with future customer penetration
and control of expenses and cost of risk. This allowed
the operating ratio to signal a 2-point improvement
compared with its level in 2013 and to reach 82.7%;
f the operating loss for the Digital Services business unit
was €62 million in 2014. This figure, however, is not
representative given that the service agreements that
allow for some services to be cross-billed to other Group
business units will not be put in place until 2015, since
the Digital Services business unit was not created until
the second quarter of 2014. Moreover, 2014 earnings
were burdened by non-recurring reorganisation costs;
f other business segments:
10.2.2.4 Net proﬁt
Net profit Group share, at €513 million, was down
€111 million compared with 2013. In addition to pre-tax
proﬁt, which fell by €35 million, there was:
f an increase in the tax expense of €56 million, due in
particular to a larger deferred tax expense recognised
in 2014;
f a €15 million drop in the share of the net proﬁt/(loss) of
equity associates, primarily for CNP Assurances;
f an increase in the share attributed to minority interests
of €4 million.
10.2.2.5 Free cash ﬂow
− Real Estate posted €60 million in operating profit,
down €71 million compared with 2013 which included
an intercompany disposal capital gain of €64 million
generated by the disposal of SCI Tertiaire Saint
Romain’s securities,
− the loss posted by the Supports and S tructures
segment is reduced by €40 million to €154 million in
2014, reﬂecting among other things the reduction in
expenses generated for the year,
− the loss posted by the Unallocated segment improved
by €93 million. In 2012, the Unallocated segment
carried the neutralisation of the intercompany
disposal of the SCI Tertiaire Saint Romain’s securities
recorded in the Real Estate segment. Cost control
efforts also contribute to this development.
10.2.2.3 Financial proﬁt/(loss)
Financial loss was €198 million, improving by €24 million
compared with 2013, with in particular:
f a €40 million reduction in net financial debt cost
resulting from the decline in rates reinforced by a
favourable impact of €20 million from the change in fair
value of the swaps related to the debt and to the debt’s
credit spread;
f a €16 million increase in other elements of financial
result (for the most part, social debt discount expense).
Free cash flow was €150 million, due to among other
things a ﬂow from excess tax in the amount of €244 million
(one-off impact of the tax consolidation mechanism) which
contributes to maintaining the cash ﬂow from operating
activities at a level close to that of 2013 (slight increase of
€12 million in 2014).
The moderate performance of operations is consistent with
the Group’s strategic plan which provides for a sustainable
recovery in cash generation starting from 2017 based on the
action plans in progress (1).
2013 free cash flows included the financing of a capital
increase of La Banque Postale for an amount of
€800 million.
After taking into account the payment of interest in the
amount of €150 million, down by €21 million compared
wi th 2013, the dividends paid to Group shareholders
(€174 million, including €3 million paid to mino rity
shareholders), the Group’s net debt (2) rose by €200 million
as of 31 December 2014 compared with the net pro forma
debt at 31 December 2013 and reached €4,005 million.
10.2.2.6 Financial ratios
The net debt-to-equity ratio remained unchanged at 0.44
conﬁrming the Group’s healthy ﬁnancial structure.
(1) See Chapter 12.
(2) Group net debt does not take into account La Banque Postale, for which this concept is not relevant.
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Review of the ﬁnancial position and results
Operating results by business segment
10
10.3 Operating results by business segment
10.3.1 Summary of operating results by business segment
10.3.3.1 New business segments
Segment reporting is presented in accordance with IFRS 8
– Operating Segments.
A segment is a distinguishable component for which
separate ﬁnancial information is available and regularly
reviewed by the Group’s Executive Management for
the purpose of allocating resources and assessing
performance.
The criteria used to define business segments include
specifically: 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 deﬁnition of operating segments is based on Le Groupe
La Poste’s current management structure. The changes
made to the Group’s governance on 4 April 2014 led to a
modiﬁcation in the segment analysis.
Creation of the Digital Services business unit
as a separate segment
The Digital Services business unit includes:
f the Digital Services Department, within La Poste parent
company, whose activities include Innovation, Internal
Transformation, the Digital Trust Programme focused
on the Digiposte digital safe and “L@Poste Online”’s
activities, the project for online customer experience
simpliﬁcation and development of online commercial
services;
f the Mediapost Communication subsidiaries with
operations in the digital area and focused on customer
relations and relationship marketing (Internet advertising
campaigns, know-your-customer, publishing and
datamart marketing);
f the Docapost subsidiaries whose operations are, among
other things, geared towards helping businesses with the
electronic management of their ﬂows of communication
with customers and suppliers (e-service platforms,
electronic archiving, invoice digitisation and collaboration
portals) as well as with document management.
Changes in the scope of the two segments
The Services-Mail-Parcels business unit now includes:
− the Mail business activities, within La Poste parent
company (collection, sorting, and delivery of
correspondence, advertising and press publications)
as well as new postmen services;
− Mail subsidiaries with operations in the following
areas: direct marketing, logistics solutions,
e-commerce logistics and/or transport, as well as
the joint venture with Swiss Post in cross-border mail
services (Asendia);
− the parcels business of La Poste parent company
(“toC” business) previously part of the Parcels-Express
line of business.
f The GeoPost business unit focuses on the Group’s
express activities and express BtoB and BtoC in France
and abroad under the following main brands: DPD,
Chronopost, Exapaq and SEUR.
The other segments remain unchanged:
f The La Banque Postale business unit includes the
Banking and Insurance activities of the La Banque
Postale subgroup as well as those of the shared
resources unit (La Poste parent company entity).
f The La Poste Network business unit (the former Retail
Brand) encompasses the sale and distribution activities
of Le Groupe La Poste intended for the general public.
The mobile telephone business, under the name La
Poste Mobile, is also part of this business unit via the
joint venture with SFR.
f The Real Estate segment includes the management of
the real estate portfolio, asset management and property
development management carried out by the sub-group
Poste Immo and the La Poste parent company’s Real
Estate Operations Department.
f The Support and Structures segment includes the
Group’s headquarters services and the support and
service departments.
f The Unallocated segment includes, in particular,
the cost of the Universal Postal Service accessibility
mission, the cost of the regional planning mission as
well as the corresponding local tax allowance and the
transitional costs associated with retirement schemes
that are considered transverse to the Group and which
are therefore not allocated to the business units.
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Operating results by business segment
10.3.1.2 Results by business segment as at 31 December 2014
31/12/2014
ServicesMail-Parcels
(€ million)
Operating revenue
11,395
Operating expenses
(10,978)
Operating proﬁt before net proﬁt
of companies under joint control
Operating margin
Share of net proﬁt/(loss) from companies
under joint control
OPERATING PROFIT after share of net
proﬁt/(loss) from companies under joint control
31/12/2013 pro forma
(€ million)
Operating revenue
Operating margin
Share of net proﬁt/(loss) from companies
under joint control
OPERATING PROFIT after share of net
proﬁt/(loss) from companies under joint control
La Poste
Network
Real Support and
Estate Structures Unallocated
Elim.
Total
5,673
539
4,167
843
825
0
(6,201)
22,163
(4,645) (4,832)
(602)
(4,139)
(794)
(980)
(694)
6,201
(21,462)
(62)
28
49
(154)
(694)
(0)
701
276
842
3.7%
5.6%
14.8%
2
8
0
0
(3)
10
0
0
0
17
419
284
842
(62)
25
60
(154)
(694)
(0)
719
ServicesMail-Parcels
GeoPost
La Banque Digital
Postale Services
La Poste
Network
Real Support and
Estate Structures Unallocated
Elim.
Total
(11,055)
Operating proﬁt before net proﬁt
of companies under joint control
4,921
La Banque Digital
Postale Services
417
11,599
Operating expenses
GeoPost
4,342
3.2%
5,574
549
4,165
854
825
0
(6,193)
21,715
(4,036) (4,848)
(541)
(4,124)
(732)
(1,020)
(719)
6,126
(20,949)
7
41
122
(194)
(719)
(67)
766
544
306
726
4.7%
7.1%
13.0%
2
10
0
0
(7)
8
0
0
(0)
12
546
316
726
7
33
130
(194)
(719)
(67)
778
3.5%
NB: Each business segment’s operating revenue corresponds to its total revenue within the segment, including intercompany
transactions, but excluding inter-segment transactions.
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Operating results by business segment
10.3.1.3 Reconciliation of the ﬁnancial statements published as at 31 December 2013
and the 2013 pro forma ﬁnancial statements following the retroactive application
of IFRS 10 and 11
PUBLISHED ON 31 DECEMBER 2013
(€ million)
Operating revenue
ServicesMail-Parcels
La Banque
Postale Digital Services
GeoPost
La Poste
Network
Support and
Structures Unallocated
Real Estate
Elim.
Total
11,103
5,988
5,539
4,230
908
825
0
(6,509)
22,084
Operating expenses
(10,632)
(5,569)
(4,831)
(4,196)
(773)
(1,037)
(719)
6,442
(21,314)
OPERATING PROFIT
471
419
708
34
135
(211)
(719)
(67)
770
ServicesMail-Parcels
GeoPost
La Poste
Network
Real Estate
Support and
Structures Unallocated
Elim.
Total
IMPACT OF IFRS 10 AND 11
(€ million)
Operating revenue
La Banque
Postale Digital Services
(184)
(109)
35
0
(65)
(53)
0
0
6
(369)
Operating expenses
180
96
(17)
0
72
40
0
0
(6)
365
OPERATING PROFIT
(4)
(12)
18
0
7
(13)
0
0
0
(4)
2
10
0
0
(7)
8
0
0
0
12
La Banque
Postale Digital Services
La Poste
Network
Real Estate
Support and
Structures Unallocated
Elim.
Total
Share of net proﬁt/(loss) from
companies under joint control
IMPACT OF THE NEW GOVERNANCE STRUCTURE
(€ million)
ServicesMail-Parcels
GeoPost
Operating revenue
679
(1,537)
0
549
0
(0)
0
0
309
0
Operating expenses
(603)
1,437
(0)
(541)
(0)
0
17
0
(309)
0
OPERATING PROFIT
77
(101)
(0)
7
(0)
0
17
0
(0)
0
ServicesMail-Parcels
GeoPost
La Banque Digital
Postale Services
Real Support and
Estate Structures Unallocated
Elim.
Total
31/12/2013 PRO FORMA
(€ million)
Operating revenue
Operating expenses
Operating proﬁt before net proﬁt
of companies under joint control
Share of net proﬁt/(loss) from companies
under joint control
OPERATING PROFIT after share of net
proﬁt/(loss) from companies under joint control
11,599
(11,055)
4,342
La Poste
Network
5,574
549
4,165
854
825
0
(6,193)
21,715
(4,036) (4,848)
(541)
(4,124)
(732)
(1,020)
(719)
6,126
(20,949)
544
306
726
7
41
122
(194)
(719)
(67)
766
2
10
0
0
(7)
8
0
0
0
12
546
316
726
7
33
130
(194)
(719)
(67)
778
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Operating results by business segment
10.3.2 Services-Mail-Parcels
The Services-Mail-Parcels business unit includes:
f the Mail business activities, within La Poste parent
co m p a n y ( co l le c t i o n , s o r t i n g , a n d d e l i ve r y o f
correspondence, advertising and press publications) as
well as new postman services;
f Mail subsidiaries with operations in the direct marketing
market (primarily Mediapost France and Sogec SA) and
in the logistics and e-logistics solutions (Viapost, STP
and Neolog for the most part), as well as the crossborder mail services joint venture (Asendia) which is
accounted by the equity method in the consolidated
ﬁnancial statements of the Group and of the business
unit;
f all the Parcels activities of La Poste parent company,
which specialises in deferred delivery (two-day) of
parcels weighing less than 30 kg to BtoC or CtoC in
France.
31/12/2014
(€ million)
Revenue
Of which external revenue
Operating expenses
Operating proﬁt before share of net proﬁt
of companies under joint control
Operating margin
Share of net proﬁt/(loss) from companies under joint control
OPERATING PROFIT/(LOSS) after share of net proﬁt/(loss)
from companies under joint control
10.3.2.1 Services and Mail divisions
At 31 December 2014, revenue totalled €9,828 million, i.e.
a drop of €197 million.
The parent company’s mail revenue was at €9,328 million,
down by €182 million compared with 2013, i.e. -1.9%. This
change was mostly due to:
f the 5.8% decline in volumes, i.e. an impact comprising
the mix of -€446 million on 2014 r evenues. The
structurally downward trend was emphasised by a
challenging economic environment and by the difﬁculties
experienced by the distance-sales companies, which led
to a steep decline in addressed advertising mail (9.6%
drop in volumes compared with 2013). Press experienced
an overall decline of 5% but with strong disparities
ranging from the 6.9% drop for urgent press to the 3.4%
increase for the economy-rate shipped press;
166
31/12/2013
pro forma
Change vs pro forma
(€m)
(in %)
11,395
11,599
-204
-1.8%
11,131
11,356
-225
-2.0%
(10,978)
(11,055)
+77
-0.7%
417
544
-127
-23.3%
3.7%
4.7%
2
2
+0
+11.4%
419
546
-127
-23.2%
-1.0 pt
The business unit has an active innovation policy which
results in both new product offers and in the roll-out of
new services relying on the connected network of postmen
(Facteo). The services offered under Cohesio (regular
home visits by postmen to households with isolated and/
or vulnerable members), Releveo (energy meter reading
on behalf of companies in the sector), Facileo delivery with
messages (delivery of items or parcels with a message
delivered to the customer by the postman), and Porteo
(various home delivery services, groceries, books, CDs and
medication), etc., are being gradually phased-in.
Quality of service remained at a high level with a next-day
delivery rate for priority mail of 86.7% as at 31 December
2014.
Revenue for the subsidiaries was €501 mill ion as at
31 December 2014, slightly down compared with 2013
(-€14 million) which was due to:
f the 3% price increase on average for the mail range as
f a downward trend for the Mail Mediapost subsidiaries
of 1 January 2014 partially offset these negative effects
by +€236 million.
(down €19 million, i.e. 4.8%) owing to an extremely
competitive printed advertising market in 2014 in a
context of advertising budget control/decline among
major customers;
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LE GROUPE LA POSTE
Review of the ﬁnancial position and results
Operating results by business segment
f an increase in the revenue of the Logistics Viapost
subsidiaries (+€5 million, i.e. +5.2%). On the other hand,
the e-commerce market grew slower than projected in
2014. The business is in the process of reorganisation
with, among other things, the combination since
June 2014 of the two principal entities (Morin and Orium)
under the Viapost brand.
10.3.2.2 Parcels division
The Parcels business declined in volume in 2014, which
broke the trend of steady growth experienced in previous
years. At end-December 2014, the €1,566 million revenue
was nevertheless practically unchanged compared with
2013 considering the price increases. The impact of the
2.7% volume decline is estimated at -€42 million.
In a generally difﬁcult economic context, the Parcels division
was also impacted by a restructuring of its customer base,
with certain traditional Parcels customers being particularly
hit in 2014. Moreover, e-commerce growth slowed compared
with that in 2013, in a market that underwent some major
changes (heightened competition due to the entry of new
players and expanding marketplaces). Competition grew
specifically in the pick-up and drop-off points deliveries
and home delivery (the leading e-retailer, Amazon, acquired
a stake in Colis Privé and is transferring flows to that
operator). The Parcels division lastly implemented a more
selective pricing policy as a result of which it was able to
withdraw from some speciﬁc ﬂows.
The price adjustments that started in late 2013 and which
continued through the beginning of 2014, as well as the
reduction of Coliéco’s portion of total volumes (10.4%
in 2014 versus 12.3% in 2013) had a favourable impact
of €49 million on the price/mix and offset the decline in
volume.
The Parcels division strives to ensure quality service, which
remained high in 2014 (two-day delivery rate of 94.1%) and
increased 1 point compared with 2013.
10
The Parcels division also has an active policy to develop
new innovative services and to support the needs of its
customers:
f parcel shipment from one’s letterbox: after an
operational testing phase, in 2015 private individual
customers will be able to ship a parcel (with postage
paid online) or to return an e-commerce product directly
from their personal letterbox;
f robust growth in the delivery to pick-up and drop-
off points which rose from 6.5 million parcels at
end-December 2013 to 10.4 million parcels in 2014,
illustrating the strong foothold of this solution which has
had tremendous success with consumers. In this area,
Parcels will also beneﬁt in 2015 from the development of
the automated locker network for the GeoPost business
unit (Pickup Services);
f stronger synergies following the creation of the Services-
Mail-Parcels business unit, with the implementation
of a range continuum intended to optimise product
offerings by harmonising and simplifying them. The
new range is available starting on 1 January 2015 (see
Section 10.1.4.5);
f continued improvement of the existing delivery offers,
both home deliveries and other, in order to make them
interactive and customised (information provided while
the parcel is in transit via connected support, option
to postpone delivery or to select a different place of
delivery).
10.3.2.3 Operating proﬁt
Operating proﬁt of the Services-Mail-Parcels business unit
was €419 million at 31 December 2014, down €127 million
compared with 31 December 2013, i.e. -23.2%.
This decline is smaller than the impact of decreasing mail
volumes and, to a lesser extent, parcels, due to the pricing
policy, innovation in services and the signiﬁcant cost control
efforts.
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Operating results by business segment
10.3.3 GeoPost
GeoPost, a subsidiary of Le Groupe La Poste, includes
deferred and express parcel activities in France and
abroad under the following main brands: Chronopost, DPD,
Exapaq, SEUR and Tigers (freight forwarding). The unit’s
subsidiaries are mainly involved in the business to business
(BtoB) market, although they are increasingly involved in
the business to consumer (BtoC) market (close to 30% of
volumes in 2014).
The delayed impact from acquisitions in 2013 (takeover of
Tigers and purchase of SEUR franchises), as well as the
impact of acquisitions in the ﬁrst half of 2014 (primarily the
purchase of the SEUR Asturies franchise and the takeover of
Worldnet and purchase of Siodemka - see Section 10.1.5.2)
resulted in a positive scope effect on GeoPost’s revenue of
+€175 million in 2014.
31/12/2013
pro forma
(€m)
(in %)
4,921
4,342
+579
+13.3%
4,847
4,271
+576
+13.5%
(4,645)
(4,036)
-609
+15.1%
-30
(€ million)
Revenue
Of which external revenue
Operating expenses
Operating proﬁt before share of net proﬁt
of companies under joint control
Operating margin
Share of net proﬁt/(loss) from companies under joint control
OPERATING PROFIT/(LOSS) after share of net proﬁt/(loss)
from companies under joint control
10.3.3.1 Continued accelerated growth
in sales
A t e n d - D e ce m b e r 2 0 1 4 , G e o Po st ’s reve n u e w a s
€4,921 million, a €579 million increase (+13.3%) compared
with 201 3. Restated for scope effects (+€1 75 million)
and exchange rate effects (+€35 million), organic growth
remained very strong at €368 million, i.e. +8.4%.
The increase was largely boosted by an upward volume
effect of €392 million (+9.0%). The price/mix effects had
an unfavourable impact on revenue in the amount of
€49 million and the other services, primarily international
freight forwarding, rose €26 million.
Organic changes in revenue by geographical area remained
dynamic and followed the previous year’s trends:
f very strong growth in sales for the United Kingdom
subsidiaries (+20%), primarily due to the increase in
volumes (development of BtoC and winning sales in
major accounts) as well as, to a lesser extent, the price
increase. The delivery offer expanded in August, notably
with the launch of Sunday delivery;
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Change vs pro forma
31/12/2014
276
306
5.6%
7.1%
-9.8%
8
10
-2
-18.6%
284
316
-32
-10.0%
-1.4 pt
f strong growth in business activities in France, for both
Exapaq and for Chronopost (respectively +5.2% and
+5.9%), driven by increasing volumes. For Chronopost,
the increase in volumes is related to C13 products
(next-day delivery before 1 pm) and C18 (next-day
delivery before 6 pm) as well as delivery to pick-up
and drop-off points (20.5 million parcels at end 2014 vs
14.4 million parcels at end 2013). The development has
been balanced both in major accounts and in SMEs. It
is worth noting that Chronopost currently offers, as in
the United Kingdom, the Predict 1H solution which can
be used to request delivery within a narrow time frame.
In 2015, Chronopost will furthermore benefit from
the development of automated lockers in France (see
section 10.1.5.2);
f the Benelux subsidiary continued to grow in 2014 (+10%)
thanks to a volume effect on international flows and
virtually unchanged prices. This was accompanied by
the continued development of the network of pick-up
and drop-off points (1,500 pick-up and drop-off points
installed at end 2014);
f in the Spanish subsidiaries, the 14% rise in volumes in
2014 underscored the continued rebound of business
Review of the ﬁnancial position and results
Operating results by business segment
activities, following the 11% rise already recorded
in 2013. In addition to a more favourable economic
environment, this commercial performance is the
outcome of having won several major accounts (in
particular in e-commerce). The impact of growing
volumes on revenue was partially mitigated by a lower
average revenue per unit attributable primarily to the
change in product mix (average weight decrease);
f the German subsidiary’s revenue rose 3% compared
with end 2013, especially driven by the export business,
while that of the domestic market remained moderate.
The end of 2014 beneﬁted, however, from the launch of
partnerships with key e-commerce players, marking
DPD Germany’s goal to expand in the buoyant domestic
BtoC market. In line with this goal, DPD continues to
expand its German network of pick-up and drop-off
points (Parcel Shops; 5,000 pick-up and drop-off
points at end 2014). More generally, DPD is investing in
developing and strengthening its BtoC services and has
been offering, for example, Saturday delivery since end
2014;
f T igers’ business is also growing, in a particularly
competitive market, with organic revenue of €110 million
at end 2014, i.e. a €32 million increase;
f lastly, the Polish subsidiary’s like-for-like activities are
also well oriented and rose 11%.
In addition to business, 2014 was marked by the roll-out of
numerous projects aimed at accelerating and sustaining
10
GeoPost’s future growth and, among them, a project for the
harmonisation of the visual identity of the GeoPost group.
It will rely on three pillars: promoting the Group’s identity
based on the DPD brand, a harmonised communication
policy (colours, uniforms and brand in local versions) and
the development of shared products and services.
Lastly, it is worth noting that GeoPost’s exposure to
geopolitical risk in the Ukraine is not material.
10.3.3.2 Operating proﬁt
The evolution in revenue goes along with an increase
in ongoing expenses, aimed at supporting the excellent
momentum of the business thanks to the development of
processing capacities (roll-out of new hubs) and delivery
solutions (expanding the pick-up and drop-off points’
network, generalisation of Predict, growing weekend
deliveries, etc.).
GeoPost’s operating proﬁt at end 2014 was €284 million
(operating proﬁt including €8 million for the share of net
profit of companies under joint control and after nonrecurring items). Excluding non-recurring items, such
as the provision for risks related to the investigation by
the Competition Authority regarding the various players
in the transport and courier sector in France, profit and
proﬁtability were up compared with 2013.
10.3.4 La Banque Postale
This business segment includes La Banque Postale, its
subsidiaries and the shared resources unit formed between
La Poste and La Banque Postale governed by a cost-sharing
agreement. All expenses relating to 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.
10.3.4.1 Economic and ﬁnancial
environment
Continuing a 2013 trend, inﬂation sharply slowed in 2014
and rates reached new historical lows (see Section 10.1.3):
f EONIA was regularly negative in the second half of the
year. The OAT lost close to 1.5 points in the year and
ended below 1%;
f in this context, the rate of the Livret A passbook savings
account, maintained in February at 1.25%, dropped to 1%
at 1 August, which had a strong impact on investments
in instruments indexed to that rate;
f the CAC 40 was affected by slow growth which posted
a moderate decline of -0.5% since the beginning of the
year, after a sharp rise in 2013 (18% for the year).
From a regulatory standpoint, 2014 was characterised
by the gradual implementation of Basel III in Europe
(CRD IV Directive/CRR Regulation) and deployment of the
Single Supervisory Mechanism of European banks (see
Section 10.1.4.8).
As indicated on 31 December 2013, La Banque Postale
is undergoing a tax audit, which concerns, in particular,
compliance with regulations applicable to regulated savings
accounts.
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Review of the ﬁnancial position and results
Operating results by business segment
10.3.4.2 Commercial activities
In line with the ambition expressed in its strategic plan, La
Banque Postale is adapting its structural organisation to
accelerate its commercial development. In this context, a
single and simpliﬁed commercial management was created
in 2014 with La Poste Network. This organisation focuses
on prioritising banking at post offices while promoting
high-quality customer relations. Also in this connection, La
Banque Postale is investing in the transformation of its IT
systems and particularly in its customer interface through
the Cap Client 3.0 project.
As was the trend at the end of 2013, the savings market
suffered from historically low interest rates and weak
economic recovery. La Banque Postale’s customer
outstandings nevertheless rose 0.8% for the yea r and
reached €299.4 billion (+€2.3 billion):
Change
31/12/2014
31/12/2013
(€bn)
(in %)
Sight deposits
50.4
47.7
+2.7
+5.7%
Ordinary savings accounts
84.0
86.1
-2.1
-2.5%
62.7
64.3
-1.6
-2.5%
LEP savings accounts
8.1
8.7
-0.6
-6.7%
Sustainable Development savings accounts (LDD)
7.3
7.2
+0.1
+1.9%
Other savings accounts
5.9
5.9
-0.1
-1.0%
(€ billion)
Livret A passbook savings account
Home loan savings
28.2
27.0
+1.2
+4.5%
UCITS (a)
12.7
14.7
-2.0
-13.6%
123.1
120.4
+2.7
+2.2%
Life insurance (a)
Other
(b)
CUSTOMER SAVINGS ACCOUNTS
1.0
1.2
-0.2
-14.6%
299.4
297.1
+2.3
+0.8%
(a) Products distributed by the La Banque Postale network and BPE.
(b) Term deposits and PEP accounts.
Sight deposits beneﬁted from the commercial development
of La Banque Postale and reached €50.4 billion, up 5.7%
(+€2.7 billion). Legal entities’ sight deposits outstandings,
driven by the strategy to win new customers, reached
€4.2 billion.
The low rates of the Livret A passbook savings account,
which dropped to 1% in August, had a strong negative
impact on ordinary savings, generating as a result
deposit withdrawals. After two years of signiﬁcant growth,
outstandings fell €1.6 billion (-2.5%).
Home loan savings outstandings reached €28.2 billion,
up €1.2 billion. The good performance is related to the
attractive rates offered by the Home Savings Plans (PEL –
Plan Épargne Logement) for 2014 at 2.5%. PEL outstandings
accordingly rose by €1.8 billion (+8.3%) and more than offset
the withdrawals from the Home Savings Accounts (CEL –
Compte Épargne Logement) outstandings.
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UCITS outstandings, penalised by the short-term rate
level and the lukewarm performance of the markets,
stood at €12.7 billion, down by €2 billion. Withdrawals
were particularly noticeable for money-market UCITS
(-€1.1 billion) whose performance is generally indexed to
the EONIA.
Life insurance outstandings at €123.1 billion were up
€2.7 billion (2.2%) speciﬁcally under the good performance
of new high-net-worth contracts: for example, the
Cachemire 2, Cachemire Patrimoine and Satinium
contracts, launched in the ﬁrst half of the year, registered
gross deposits of €3.6 billion. Unit-linked policies as a
proportion of gross inflows also continued to increase,
reaching 13.1%.
Customer loan outstandings continued their strong growth
to €64.7 billion, i.e. an increase of €6.9 billion (+12.0% and
+9.3% restated for Soﬁap’s outstandings, consolidated in
May 2014).
10
Review of the ﬁnancial position and results
Operating results by business segment
Change
(€ billion)
31/12/2014
31/12/2013
(€bn)
(in %)
53.4
49.8
+3.6
+7.2%
Home loans
Consumer loans
4.0
3.4
+0.6
+19.2%
Other loans (a)
0.8
0.7
+0.1
+18.5%
6.5
3.9
+2.5
+64.4%
64.7
57.8
+6.9
+12.0%
Loans to legal entities (b)
CUSTOMER LOANS
(c)
(a) Overdrawn sight deposits and amounts owed on bank cards.
(b) Companies, social housing associations and regional authorities.
(c) Scope effect of €1.5 billion related to the consolidation of Soﬁap in May 2014.
In a waning market, La Banque Postale continues to develop
its home loan business. Outstandings rose signiﬁcantly by
7.2% to €53.4 billion. Like-for-like, growth remained strong
at 4.2%. Soﬁap, a shared subsidiary with SNCF, represented
€1.5 billion in outstanding home loans.
The consumer credit business, driven since 2010 by La
Banque Postale Financement (a subsidiary, 65%-held by
La Banque Postale and 35%-held by Société Générale),
posted sustained growth with outstandings up by 19.2%
to €4.0 billion. The good sales momentum of the Network
helped cross the €2 billion production threshold in 2014 (up
13.1% compared with 2013).
Since 2012, La Banque Postale has also been lending to
businesses and the local public sector. This business
is experiencing rapid growth and has already reached
€6.5 billion in outstandings (+64.4%) at end 2014. New loans
to the local public sector reached €6.8 billion in 2014, driven
by the cash lines.
10.3.4.3 Operating performance
31/12/2014
(€ million)
Asset management
Insurance
148
31/12/2013
pro forma
Change vs pro forma
(€m)
(in %)
134
+14
+10.3%
178
158
+21
+13.0%
5,347
5,282
+65
+1.2%
Net interest margin
3,325
3,417
-91
-2.7%
Commissions
2,148
1,990
+158
+7.9%
Other income and expenses
(126)
(125)
-1
+0.9%
5,673
5,574
+100
+1.8%
Retail banking
NET BANKING INCOME
La Banque Postale’s Net Banking Income (NBI) totalled
€5,673 million in 2014, up 1.8% (+€100 million). Restated
for the home savings provision and the scope effects related
to the consolidation of BPE and Soﬁap, it grew stronger by
4.0%.
The Asset Management division’s NBI continued to grow
(up 10.3%) and was €148 m illion in 2014. The strong
commercial performance of LBP Gestion Privée, with gross
inﬂows of €1.0 billion (up 90%), contributed to the 5.5% rise
in outstandings under management compared with 2013.
At €178 million, the NBI of the Insurance division rose
13% compared with 2013 pro forma (transition to full
consolidation of La Banque Postale Prévoyance, a subsidiary
held jointly with CNP Assurances, in application of IFRS 10).
La Banque Postale Prévoyance’s NBI was up 3.2%, with
good results in loan insurance revenue, among other
things. The division is also beneﬁting from the commercial
momentum of the recently created subsidiaries. Thus,
the contract portfolios of La Banque Postale IARD (a
subsidiary 65%-held by La Banque Postale and 35%-held by
Groupama) and that of La Banque Postale Assurance Santé
(a subsidiary 65%-held by La Banque Postale and 35%-held
by La Mutuelle Générale), posted increases of +31.6% and
+39.9% respectively.
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Operating results by business segment
After restatement for the home savings provision and the
scope effects related to BPE and Sofiap, the NBI of the
Retail Banking division posted an increase of 3.5% (up
€186 million). This rise is related to:
f a strong 7.5% increase in commissions related to
the efforts to increase the number of products per
customer and upscale products. The good commercial
performance of life insurance also contributed to this
growth.
f a 1.1% increase in net interest margin, fuelled for the
most part by the continued expansion of loans to private
individuals but also to the rise in financing to legal
entities;
31/12/2013
pro forma
(€m)
(in %)
5,673
5,574
+100
+1.8%
(4,669)
(4,703)
+35
-0.7%
(€ million)
Net Banking Income
Management expenses
Gains and losses on other assets
Change vs pro forma
31/12/2014
(a)
Gross operating proﬁt
Cost of risk
OPERATING PROFIT
La Banque Postale cost-to-income ratio
(0)
10
-10
n.s.
1,005
880
+125
+14.2%
(163)
(154)
-9
+5.6%
842
726
+116
+16.0%
82.7%
84.7%
-2.0 pts
(a) Including the CNP negative goodwill in 2013.
n.s.: not signiﬁcant.
Despite the investments made to ﬁnance the development
of subsidiaries and new activities, La Banque Postale has
shown control of its expenses as its management costs
were slightly down by 0.7% to €4,669 million.
10.3.4.4 Financial structure
Gross operating proﬁt was €1,005 million, up €125 million
compared with 2013 (up 14.2%) and is accompanied by a
clear improvement of the operating ratio at 82.7% (84.7%
in 2013).
f on 11 April by issuing €750 million of Tier 2 subordinated
Cost of risk, at €163 million, posted a moderate increase
of 5.6% despite the strong increase in customer loans
outstanding.
La Banque Postale business unit’s operating profit was
€842 million in 2014, up 16% (€116 million).
La Banque Postale has a solid ﬁnancial structure, which
was strengthened twice this year:
notes maturing in 12 years;
f on 18 November through a capital increase of
€633 million, with the transfer of the cash held at post
ofﬁces by La Poste parent company.
These transactions, combined with a downward weighting
of real estate loans guaranteed by Crédit Logement,
signiﬁcantly increased solvency ratios. Thus, the Common
Equity Tier 1 (1) ratio reached 12.7% compared with 10.1% at
31 December 2013 and the total solvency ratio was 17.0%
compared with 12.9%.
The strong balance sheet of La Banque Postale was
conﬁrmed by the AQR and Stress Test results, published in
October by the European Central Bank (the detailed results
are available from www.labanquepostale.fr). La Banque
Postale was able to prove the quality of its assets and the
resistance of its model in a down scenario.
The liquidity position remains very positive with a loan to
deposit ratio at 75% and an LCR (short-term estimated
liquidity ratio) at 184%.
(1) CET1 Ratio with application of interim measures. The CET1 fully loaded ratio was 14.0%.
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Operating results by business segment
10.3.5 La Poste Network
The business unit formerly called “La Poste Retail Brand”
has been renamed “La Poste Network” in order to reafﬁrm
its role as a distributor of products and services from all of
the business units to the general public.
The La Poste Telecom subsidiary is also included in
this business unit, in the “Share of net proﬁt/(loss) from
companies under joint control” line item. Its offerings are
marketed under the “La Poste Mobile” brand.
31/12/2013
31/12/2013
pro forma
4,167
4,165
(€ million)
Revenue
Of which external revenue
Change vs pro forma
(€m)
(in %)
+2
+0.1%
27
27
+0
+1.3%
(4,139)
(4,124)
-15
+0.4%
Operating proﬁt before share of net proﬁt
of companies under joint control
28
41
-13
-32.0%
Share of net proﬁt/(loss) from companies under joint control
(3)
(7)
+4
-58.2%
OPERATING PROFIT/(LOSS) after share of net proﬁt/(loss)
from companies under joint control
25
33
-9
-26.2%
Operating expenses
Internal revenue corresponds to the billing of services
provided by the La Poste Network on behalf of other
business units. It is governed by service agreements as
follow:
f service agreements based on operating indicators
(e.g. sales or items handled), with the business unit
Services-Mail-Parcels and the GeoPost business unit
(Chronopost);
f 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 and
coordinated by the Network (e.g. ﬁnancial advisors);
f 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.
10.3.5.1 La Poste Network
With its 17,104 public outlets in France, 7,501 of which are
in partnerships (Local Postal agencies and Relais Poste
outlets) as at 31 December 2014, La Poste Network is the
densest physical distribution network in the country. Its
contribution to the Group’s business units’ development and
economic competitiveness relies on its ability to:
f accelerate their business development by developing
synergies within the Group:
− creating in 2014 more than 500 share market areas
with the Services-Mail-Parcels business unit ,
coordinated and managed jointly with a multichannel
objective, represents the new pillar of the commercial
mechanism destined to professionals and private
individuals for all the mail and parcels products.
These market areas must also make it possible to
expand the complementarity and the synergy of the
various sales channels to be able to better treat the
Group’s customers and accelerate the commercial
development,
− in the banking area, other synergies occurred with the
1 September 2014 transfer of the managerial lines of
the commercial banking activities to the Network. The
Single Commercial Management (MCU) project aims
to roll out:
− a single, simpliﬁed and more efﬁcient managerial
line, focused on prioritising banking and the quality
of customer relations,
− empowered managers on the ground to make
decisions as close to the customer as possible,
− a progressively decentralised risk management on
the ground,
− an ambitious plan to develop banking expertise;
f developing an innovative service offering that is adapted
to customers. For example in 2014:
− continued expansion of telephony through the
constant integration of new offers (4G, contactless
mobile payment, “Music” plans integrating unlimited
streaming access to a catalogue of more than
two million titles from the Universal group, etc.),
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Operating results by business segment
− launch in 54 post ofﬁces of marketing tests for the
Security Habitat Pack, a remote surveillance offer sold
by counter clerks,
− 3D printers in testing phase at four post ofﬁces,
− gradual digitisation of the Network by rolling-out
digital tablets for use by customers in close to
1,000 Local Postal agencies;
f improving customer satisfaction by maintaining a high
quality of service: on 2 April 2014, the Network launched
an innovative customer listening scheme in 2,000 post
offices. This programme was part of the Network’s
strategic plan and part of the effort to continue the
process to improve service in the post ofﬁce, which has
allowed the company to reach a current level of 95% of
satisﬁed customers at the time of leaving the post ofﬁce.
The first component of the programme consisted in
spontaneous customer surveys in the post ofﬁce. The
goal is to measure the customer satisfaction rate on
the basics (waiting time, treatment, advice, cleanliness
of the space, etc.). The second component consisted
in targeted customer surveys. These surveys consist
in contacting bank customers following their visits
with advisors and contacting professional customers
after their visit to a post ofﬁce to get their opinion on
the quality of service of the facility. The objective of this
targeted survey is to keep an open dialogue with banking
and professional customers and to analyse their grounds
for satisfaction or dissatisfaction. Since its launch, more
than 10,000 customers have scanned the QR code,
40,000 banking customers and 10,000 professional
customers have been interviewed: 88% of banking
customers and 82% of professional customers have
expressed their overall satisfaction with the services,
35% of banking customers and 30% of professional
customers state that they would recommend La Poste.
Additionally, La Poste received the 1st prize from the 2014
(1)
Customer Relations Podium for the “service company”
sector;
f controlling the costs of the commercial network whose
use by the Group’s business units is re-billed to them.
In an environment of declining counter activity (-5.8%
compared with 2013), falling mail and parcels volumes
and restructuring of the networks of agencies by the
major banks, it is imperative to stabilise the Network’s
costs within the customer business units’ total operating
expenses.
As a result of the action plans rolled out, the Network’s
like-for-like operating costs were down 0.5% for 2014
(the apparent rise of 0.4% can be attributed to the
inclusion at 1 September of nearly 1,500 employees as
part of the transfer related to the Single Commercial
Management project).
To meet all of these objectives, the Network has, in addition
to all the initiatives listed above, started in 2014 a study to
update its operations in urban areas. The objective is to
offer a model that can make the Network and Le Groupe
La Poste “a city life player” by adapting the services to the
way of living of city people, speciﬁcally in terms of operating
hours. At this stage, urban postal pick-up and drop-off
points are being tested in four pilot cities, Bordeaux, Paris,
Lyon and Dijon and other public outlets in the same format
will be created in 2015.
10.3.5.2 La Poste Mobile
La Poste Telecom, the Group’s virtual mobile network
operator, in which it has a 51% stake in partnership with
SFR, which holds the remaining 49%, offers its products
and services under the “La Poste Mobile” brand.
The subsidiary continues to expand, thanks to constantly
renewing innovative and competitive offers. Therefore,
with 726,000 new lines sold in 2014 (+18.3% versus 2013),
including 149,000 in the International Pre-paid offer
launched in April, the 1,150,000 lines level was reached at
31 December 2014 after less than four years in operation.
La Poste Mobile also sold 45,000 broadband subscriptions
during the year as part of its Quatro offer (TV, Internet, ﬁxed
telephone and mobile) in partnership with SFR (launched on
22 April 2013, 20,000 boxes sold in 2013).
La Poste Mobile’s keys to success are the ongoing
adaptation of offerings to customers’ needs (unlimited
plans, 4G, quadruple play offer, launch of international
pre-paid in April 2014, etc.) while keeping the product
ranges simple and affordable for as many people as
possible, the breadth of the La Poste Network, the number
of its sellers and the values of trust that the Group
represents.
(1) Survey performed by BearingPoint and TNS Sofres in December 2013 with customers/users of companies/administrations, from a sample of 4,000 people.
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Operating results by business segment
10.3.6 Digital Services
The Digital Services business unit , created during the
first half of 2014 as part of the implementation of the
Group’s new corporate governance model, will carry out
complementary missions:
f a “Laboratory” mission: through several programmes,
f a revenue development mission: the Digital Services
f a mission for the provision of services to the other
business unit through its Docapost and Mediapost
Communication subsidiaries produces and markets
digital offers, solutions and services in the area of digital
transformation, digital marketing and digital trust, by
adding to classic publishing and ﬁling products;
business unit s in the Group: for example, the
implementation of a corporate social network and putting
in place training to adjust to the new digital culture. It
is also in charge of the group Data policy. Lastly, it is
also the head of the high-priority shared (1) “knowledge
of individual customers”, intended to standardise the
Group’s different individual customer databases.
such as start-up incubation, the Digital Services
business unit is responsible for detecting, developing
and industrialising digital innovation to serve the Group;
Change vs pro forma
31/12/2014
31/12/2013
pro forma
(€m)
(in %)
539
549
-9
-1.7%
487
495
-8
-1.6%
Operating expenses
(602)
(541)
-60
+11.1%
OPERATING PROFIT
(62)
7
-70
N.S.
-11.5%
1.4%
(€ million)
Revenue
Of which external revenue
As a % of revenue
-12.9 pt
n.s.: not signiﬁcant.
10.3.6.1 Revenue
Revenue totalled €539 million in 2014, down €9 million
compared with 2013 (i.e. -1.7%):
For 2014, revenue includes the sales made by the digital
services subsidiaries and for the parent company just
the advertising revenue from the website www.laposte.fr.
Sales of products made on the website are recognised in
the lines of business concerned (for the most part, the
Services-Mail-Parcels business unit). As from 1 January
2015, the Digital Services business unit will implement
internal invoicing for the other Group entities, including for
example a commission based on the sales ﬁgures achieved
by the other business units through the www.laposte.fr
website (the Digital Services business unit being in charge
of developing these sales online).
f the Docapost division is continuing its digital
transformation. The traditional activities (cheque
processing and desktop publishing) are structurally
declining while new services are being developed,
such as customer pathways management services,
information platforms creation services, evidence
archiving services and marketing of publishing software
programmes. Overall, revenue was down €7 million,
i.e. -1.5%;
(1) As part of its new strategic plan, the Group deﬁned in April 2014, ﬁve shared and cross-functional high-priority projects, aimed at expanding into new
territories by 2020 (see Section 10.1.1.3).
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Operating results by business segment
f the Mediapost Communication division is holding its
position well in a shrinking advertising revenue market
(-4%). The development of the CRM market and the
multichannel campaign management shows an increase
in its sales. Nevertheless, its mixed performance in the
area of electronic commerce support as well as in a
portion of its Data activity have led to an overall decline in
revenue in the amount of €5 million (-4.7%). The launch
of new offers, such as the multichannel retargeting and
real-time bidding (RTB), is expected to start creating
growth opportunities in 2015;
f the parent company’s revenue was up €2 million.
The major project to transform and modernise L@Poste
online was also launched this year and several
milestones have already been laid out: the redesign of the
www.laposte.net email service, which has more than
3.4 million users, and the online release of the new
www.laposte.fr website in early July. The organisation of
content and the design were entirely redeveloped to make
navigation easier for Internet users and to develop online
sales and customer satisfaction, regardless of the Internet
channel that the customer chooses to use in order to make
contact with La Poste (website, mobile or tablet application
or social media).
Innovation is at the heart of the Digital Services business
unit as shown in its January 2015 presence at the Las Vegas
Consumer Electronic Show at which it unveiled La Poste’s
“digital hub”, ﬁrst universal platform combining connected
objects and local services in an environment of trust and
data security.
10.3.6.2 Operating proﬁt
Operating expenses were up €60 million reflecting the
growth of the new activities (e-commerce and professional
customer activity, redesign of the l aposte.net website,
merging of the various www.laposte.fr websites), the “fullyear effect” of the 1 July 2013 transfer of the digital services
activities previously carried out by other Group business
units as well as of the non-recurring reorganisation costs.
The Digital Services business unit 2014 consolidated
operating loss of €62 million is not representative as it
does not yet account for the compensation for business
contribution and services performed on behalf of the other
Group business unit s, which will be included as from
1 January 2015 (for 2014, the Digital Services business unit
has therefore included the entire scope of expenses but not
yet the corresponding revenue).
10.3.7 Other segments
10.3.7.1 Real Estate
The Real Estate segment includes the Poste Immo subsidiary and the Real Estate Department of the La Poste parent
company.
31/12/2014
(€ million)
Revenue
Of which external revenue
Current operating expenses
Gains (Losses) on disposal
Operating proﬁt before share of net proﬁt of companies
under joint control
Change vs pro forma
(€m)
(in %)
843
854
-11
-1.3%
11
9
+2
+19.9%
(811)
(806)
-4
+0.5%
17
74
-58
-77.7%
-73
-59.8%
49
122
5.8%
14.3%
Share of net proﬁt/(loss) from companies under joint control
10
8
+3
+33.9%
OPERATING PROFIT/(LOSS) after share of net proﬁt/(loss)
from companies under joint control
60
130
-71
-54.3%
Operating margin
176
31/12/2013
pro forma
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Review of the ﬁnancial position and results
Operating results by business segment
10
Real Estate revenue was €843 million, down €11 million,
i.e. -1.3%, compared with 2013: intra-Group invoicing (down
€13 million) was partially offset by the higher billing of
customers outside the Group (up €2 million).
housing units at rue Cler (Paris, 7th arrondissement) and of
an ofﬁce complex at Issy-les-Moulineaux. Other real estate
programmes of the same nature (housing units at Lyon
Croix Rousse, Toulouse Lardennes, etc.) are in progress.
The decrease in internal billing is related to a decrease in
property rentals invoiced to the business units (reduction
of surface area used) along with a smaller increase in
additional rental income (fewer post ofﬁce outﬁtting works
invoiced to the Network business unit). This change reﬂects
the cost control efforts of the Group.
Operating proﬁt after joint control amounted to €60 million,
down €71 million compared with 2013, mainly due to the
decline in gains on disposals. Related to the contribution of
its registered ofﬁces to La Banque Postale in 2013, the Real
Estate division had generated an internal gain of €64 million
(no impact within the Group).
As part of expanding its business activities, Poste Immo
continued to roll out development operations and external
joint development to meet the business units’ diversiﬁcation
needs, add value to its portfolio and diminish vacancies
and help generate cash and revenue for the Group in the
medium term. This roll out policy resulted among other
things in the delivery in the second half of 2014 of 64
Lastly, the restructuring work at Musée de la Poste, which
was required to bring the location up to PMR (1) standards
and to allow the Group to ensure a public service mission
of valuation and preservation of the State’s collections, took
an important step in the ﬁrst half of 2014 by obtaining a
building permit.
10.3.7.2 Support and Structures
The Support and Structures segment includes the Support Departments (mainly IT, Vehicle Fleet Management and Supplies)
that re-invoice the Group’s other segments for costs incurred and the Group’s headquarters costs.
Change vs pro forma
31/12/2014
31/12/2013
pro forma
(€m)
(in %)
825
825
+0
+0.0%
Operating expenses
(980)
(1,020)
+40
-3.9%
OPERATING PROFIT
(154)
(194)
+40
-20.5%
(€ million)
Operating revenue
2014 operating revenue was €8 25 million in 2014 and
included:
f €782 million for intercompany revenue resulting from
invoicing for services provided to other segments by
Support and the “billing” service centres of the Head
Ofﬁce. Unit prices are established prior to commencing
work in a service agreement and amounts charged are
based on actual volumes;
Invoicing remained stable. The significant decline in
customer demand specifically for IT services (down
€18 million) was partly offset by new invoicing by
headquarters and the Institute of Management in particular.
Operating expenses dropped 3.9% and reﬂect primarily the
cost reduction efforts of headquarters and structures.
f €43 million in Group headquarters costs paid by
subsidiaries (management fees).
(1) In line with the standards for accessibility to persons with reduced mobility.
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Other key aggregates of the income statement
10.3.7.3 Unallocated expenses
31/12/2014
(€ million)
Net cost of regional postal presence
(600)
Other operating expenses
OPERATING PROFIT
The Unallocated segment includes the cost of the Universal
Postal Service accessibility mission, the cost of the regional
planning mission, the corresponding local tax allowance
and, lastly, the transitional costs associated with retirement
schemes that are considered transverse to the Group and
which are therefore not allocated to the business units.
31/12/2013
pro forma
(618)
Change vs pro forma
(€m)
(in %)
+18
-2.8%
(93)
(101)
+8
-7.7%
(694)
(719)
+25
+3.5%
The €25 million savings recorded corresponds for the most
part to the positive effect of the decline in the La Poste
Network’s operating charges on the measurement of the
cost of local postal coverage.
10.4 Other key aggregates of the income statement
10.4.1 Financial proﬁt/(loss)
31/12/2014
(€ million)
Net interest expense
Change in “fair value” including debt credit spread
Cost of net ﬁnancial debt
Other ﬁnancial items
FINANCIAL PROFIT/(LOSS)
Financial profit/(loss) improved by €2 4 million in 2014
compared with 2013, to reach -€198 million.
Net debt interest expense was down €20 million compared
with 2013. The repayment of the €726 million bond issue in
November 2013, which was partially offset by an issue of
€250 million in November 2013, as well as the repayment in
July 2014 of the CHF 250 million bond, allowed La Poste to
record a decrease in the estimated average cost of debt over
four years (3.04%). The continued decline of euro rates has
just reinforced this downward trend in interest expenses.
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31/12/2013
pro forma
Change vs pro forma
(€m)
(in %)
(153)
(173)
+20
-11.6%
(4)
(24)
+20
-83.5%
(157)
(197)
+40
-20.3%
(41)
(25)
-16
+63.9%
(198)
(222)
+24
-10.9%
The change in fair value of the debt and derivatives,
corresponding to an expense of €4 mill ion for 2014,
generated a favourable spread of €20 million compared
with 2013. The change in fair value of derivatives was
+€20 million, whereas tightening La Poste’s spread led to
a €24 million expense.
Other ﬁnancial items (€41 million in 2014), up €16 million
compared with 2013, correspond for the most part to
accretion expenses on social debt (€44 million in 2014, up
€7 million compared with 2013).
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Review of the ﬁnancial position and results
Other key aggregates of the income statement
10.4.2 Net proﬁt Group share
Change vs pro forma
31/12/2014
31/12/2013
pro forma
(€m)
(in %)
22,163
21,715
+449
+2.1%
(21,462)
(20,949)
-513
+2.4%
701
766
-65
-8.4%
18
12
+5
+43.2%
719
778
-59
-7.6%
(198)
(222)
+24
-10.9%
(€ million)
Operating revenue
Operating expenses
Operating proﬁt
Share of net proﬁt/(loss) from companies under joint
control
Operating proﬁt after share of net proﬁt
from companies under joint control
Financial proﬁt/(loss)
Proﬁt before tax
Income tax
Share in proﬁts of other equity associates
521
556
-35
-6.3%
(182)
(125)
-56
+45.1%
200
215
-15
-7.1%
CONSOLIDATED NET PROFIT/(LOSS)
539
646
-107
-16.5%
Net proﬁt Group share
513
624
-111
-17.7%
27
23
+4
+16.8%
Non-controlling interests
Net profit Group share fell from €6 24 million at endDecember 2013 to €513 million at end-December 2014,
down €111 million, including an additional favourable effect
of the CICE tax credit of €55 million.
Proﬁt before tax was down €35 million to €521 million, this
decrease coming primarily from the decline in operating
proﬁt (down €59 million), which was partially offset by an
improvement in ﬁnancial income of €24 million.
The Group’s tax expense totalled €182 millio n, up by
€56 million, accounting for the change in deferred taxes: an
expense of €96 million in 2014 versus income of €4 million
in 2013 (see Chapter 20, Note 14.3 of the notes to the
consolidated ﬁnancial statements).
The share of profit of other equity associates totalled
€200 million in 2014, down €15 million comp ared with
December 2013 and primarily includes the contribution of
CNP Assurances, in which the Group holds a 20.15% stake.
Registration document 2014
LE GROUPE LA POSTE
179
10
Review of the ﬁnancial position and results
Debt and ﬁnancial strength
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.
Thus, Group net debt does not directly take into account
La Banque Postale, for which this concept is not
relevant. Group net debt therefore changes based mainly
on the following:
As the Group parent company, La Poste provides funding
for industrial and commercial activities and equity
for La Banque Postale. La Banque Postale, although
fully consolidated, is assessed through the dividends
it distributes to its parent company, which are treated
as Group cash flows after minimum regulatory equity
requirements have been met.
to generate surplus free cash ﬂows (EBITDA, changes
in working capital, capital expenditure and potential
external growth);
f the ability of the industrial and commercial activities
f the dividends paid by La Banque Postale to La
Poste (including coupons of the AT1 hybrid securities)
or from equity associates and vice versa the capital
increases, if any, in those entities;
f tax charge applying to the tax consolidation group set up
between La Poste and its subsidiaries;
f la Poste’s cost of capital employed, based on interest paid
on net debt and dividends paid out to its shareholders.
10.5.1 Changes in net debt
10.5.1.1 Cash ﬂows from operating activities
Cash ﬂows from operating activities were up €12 million compared with December 2013, after taking into account a favourable
impact from the CICE tax credit of €61 million on the amount of tax paid in 2014 for 2013:
31/12/2013
pro forma
(€m)
(in %)
EBITDA (excluding La Banque Postale)
944
790
+153
+19.4%
Dividends received from LBP and equity associates
340
267
+72
+27.1%
(€ million)
Change in working capital
(174)
133
-307
n.s.
CICE for the year
(346)
(253)
-93
+36.7%
244
100
+143
n.s.
Taxes paid
CICE credited against taxes
Other cash ﬂows from operating activities
CASH FLOWS FROM OPERATING ACTIVITIES
n.s.: not signiﬁcant.
180
Change vs pro forma
31/12/2014
Registration document 2014
LE GROUPE LA POSTE
61
0
+61
n.s.
(38)
(20)
-18
+87.9%
1,030
1,018
+12
+1.2%
10
Review of the ﬁnancial position and results
Debt and ﬁnancial strength
EBITDA excluding Banking improved by €153 million at end
2014, including the €93 million increase in the Tax Credit
for Competitiveness and Employment (CICE) resulting from
the transition from a 4% rate to a 6% rate (1). The CICE tax
credit is included in EBITDA as a deduction from personnel
expenses. In addition to this positive effect of the CICE,
it is worth noting the €39 million increase in EBITDA for
GeoPost.
Government receivables related to the CICE tax credit
reached at end-December 2014 a net amount of
€538 milli on including €253 millio n generated in 2013
and €346 million generated in 2014, partially offset by
€61 million c harged to tax in 2014. These receivables
are monitored separately from the working capital
requirements.
Dividends received from La Banque Postale and its equity
associates grew €72 million primarily due to the coupons
received by La Banque Postale as interest payment for the
AT1 hybrid securities. These securities were fully subscribed
with La Poste parent company in an equity capital increase
transaction conducted at end 2013.
The negative variance in WCR (-€307 million) was generated
largely by cash held at the post ofﬁces which had a positive
effect of €108 million in ﬁnancial year 2013 and a negative
impact of €21 million on the change in the 2014 WCR.
Cash held at the post offices was brought to La Banque
Postale for the amount of €633 million as part of a capital
increase in the form of a contribution in kind, that took place
on 18 November 2014,. Excluding it, the change in WCR
generates a negative variance of -€178 million compared
with 2013 attributable for up to €50 million to the delayed
payment in early 2015 by the Government of a portion of the
compensation for the press.
Taxes led to an additional positive effect of €143 million on
the Group’s net debt (2) in 2014, due, among other things, to
the allocation of the deﬁcit from non-banking activities on
tax paid by La Banque Postale to its parent company under
the tax consolidation mechanism.
10.5.1.2 Cash ﬂow from non-Banking investing activities
Net non-banking investment outﬂows amounted to €880 million as at end-December 2014, or €668 million less compared
to December 2013.
31/12/2014
(€ million)
Purchase of intangible assets and property, plant and equipment
Purchases of ﬁnancial assets
Asset disposals
Acquisition of subsidiaries less cash acquired
Disposal of subsidiaries, less any disposals of cash
CASH FLOWS FROM NON-BANKING INVESTING ACTIVITIES
31/12/2013
pro forma
Change vs pro forma
(€m)
(in %)
(844)
(829)
-15
+1.8%
(16)
(821)
+805
-98.1%
136
151
-15
-9.8%
(152)
(50)
-102
n.s.
(5)
0
-5
n.s.
(880)
(1,548)
+668
-43.2%
n.s.: not signiﬁcant.
Purchase of intangible assets and P, P & E
Purchases of property, plant and equipment increased
moderately compared with 2013 (+€15 million). The Group’s
cost control efforts, the Real Estate division’s reduction
in investments (€35 million) and a targeted investment
policy for the Network and in the Support segment offset
a major portion of the €71 million increase in investments
to support GeoPost’s rapid growth and the Services-MailParcels business unit’s €11 million growth.
(1) The impact of the CICE tax credit (including provisions) in the Group’s 2014 operating income was €352 million. It was up €55 million compared with 2013,
including +€93 million for compensation, recognised in the EBITDA excluding Banking and -€39 million for HR provisions.
(2) Group net debt does not take into account La Banque Postale, for which this concept is not relevant.
Registration document 2014
LE GROUPE LA POSTE
181
10
Review of the ﬁnancial position and results
Debt and ﬁnancial strength
Purchases of intangible assets and property, plant and equipment broken down by business unit are shown below:
Change vs pro forma
31/12/2014
31/12/2013
pro forma
(€m)
(in %)
Services-Mail-Parcels
(196)
(184)
-11
+6.1%
GeoPost
(226)
(155)
-71
+46.2%
(€ million)
La Poste Network
(17)
(31)
+13
-43.3%
(213)
(249)
+35
-14.2%
Digital Services
(37)
(27)
-11
+40.5%
Support & Other
(154)
(184)
+30
-16.3%
Purchases of intangible assets and property,
plant and equipment (outﬂows)
(844)
(829)
-15
+1.8%
25
6
+19
n.s.
(819)
(824)
+4
-0.5%
Real estate
Change in payables to suppliers of non-current assets
INVESTMENTS EXCLUDING BANKING
n.s.: not signiﬁcant
More speciﬁcally, the €15 million decline in purchases of
intangible assets and property, plant and equipment is
broken down as follows:
f the Services-Mail-Parcels business unit: up €11 million
to €196 million with:
− parent company mail: €145 million, up €28 million.
2014 acquisitions are primarily dedicated to the IT
systems, the increase originating mainly from the
purchase of licences and software royalties,
− parcels: €25 million, down €15 million in relation to
ongoing work on synergies within the Services-MailParcels business unit,
− Mail subsidiaries: down €2 million compared with
2014;
f GeoPost: €226 million, up €71 million including
€28 million in the United Kingdom (Birmingham
h ub), €12 million in Germany (warehouses in Unna,
Aschaffenbourg, Nuremberg and Ludwigsbourg),
€12 million for Exapaq (notably the Tours hub) and
€6 million in Benelux (including the de Veenandal hub).
These investments are intended primarily to support
GeoPost’s strong operating growth;
f Network: strong decline of €13 million involving for the
most part the IT system and the slowdown in installation
of new furnishing in the post offices as part of the
Group’s expense control objectives;
f Real estate: decline of €35 million, including -€44 million
in investments made on behalf of the business units,
-€9 million involving primarily the IT systems of the
Real Estate segment and partially offset by an increase
of €17 million related to the valuation of assets (Musée
de La Poste, Bonneuil platform and Louvre site);
f Support and other: decline of €30 million including a
decline of €24 million for the acquisition of vehicles (cost
control effort).
Purchases of intangible assets and property, plant and
equipment broken down by business unit are presented
including the changes in fixed asset suppliers and
correspond to a cash outﬂow.
Finance leases are not taken into account in this table, in
accordance with IAS 7.
Purchases of ﬁnancial assets
Purchases of financial assets (guarantee deposits and
investments) do not include Cash investments of more
than three months, respectively €563 million as at the
end of December 2014 and €655 million as at the end of
December 2013, considered primarily as backing for bonds,
and fall under the Group’s day-to-day cash management
policy. They are presented as a deduction from net debt (1).
(1) Group net debt does not take into account La Banque Postale, for which this concept is not relevant.
182
Registration document 2014
LE GROUPE LA POSTE
10
Review of the ﬁnancial position and results
Debt and ﬁnancial strength
The purchases of ﬁnancial assets made in 2014 were overall
immaterial. They were €805 million less than in the previous
year, 2013 having been impacted by the subscription by La
Poste parent company of €800 million in hybrid securities
(AT1) as part of a transaction intended to increase La
Banque Postale’s equity.
Acquisitions and external growth
Acquisitions in 2014, less deductions of cash and cash
equivalents acquired, amounted to €152 million. They were
mainly made by GeoPost, which acquired Siodemka, took
over Worldnet and purchased the SEUR Asturies franchise.
Additionally, La Banque Postale acquired Sofiap (see
Section 10.1.5.3.1). This acquisition, however, was not
included in this aggregate, since La Banque Postale’s cash
ﬂows are assessed by its distribution capacity, as explained
above.
Asset disposals
Asset disposals, amounting to €136 million, were
€15 million less than in 2013. Asset disposals include, in
particular, sales of Group vehicles and disposals of buildings
from La Poste’s real estate portfolio.
10.5.1.3 Change in net debt
The Group’s net debt ro se by €200 million compared
with the 2013 pro forma debt, from €3,805 million to
€4,005 million.
In addition to a positive free cash ﬂow of €150 million, up
€681 million compared with 2013 (in 2013 the Group had
subscribed hybrid securities issued by La Banque Postale
in the amount of €800 million), the Group paid in 2014,
€174 million in dividends to the shareholders from the
2013 results and paid €150 million in net interest, down by
€21 million compared with 2013.
Net free cash ﬂow at end-December 2014 was negative at
€174 million. It is €702 million higher than the 2013 net free
cash ﬂow, a year during which the Group had strengthened
La Banque Postale’s equity with €800 million in the form
of hybrid securities. In 2013, the Group had also received
€600 million for the last tranche of the €2.7 billion capital
increase, paid by its shareholders from 2011 to 2013.
In the 2013-2014 period, the Group’s net debt rose overall
by €537 million. Net receivables for the CICE tax credit
(excluding Banking) stood in turn at €538 million at end
2014.
31/12/2014
(€ million)
31/12/2013
pro forma
Change vs pro forma
(€m)
(in %)
Cash ﬂows from operating activities
1,030
1,018
+12
+1.2%
Cash ﬂows from investing activities
(880)
(1,548)
+668
-43.2%
150
(531)
+681
n.s.
Dividends paid
(174)
(175)
+0
-0.1%
Net interest paid
(150)
(171)
+21
-12.3%
Net free cash ﬂows
(174)
(876)
+702
-80.1%
0
600
-600
-100.0%
(13)
(14)
+1
-5.9%
Free cash ﬂows
Capital increase
Impact of changes in consolidation on gross debt
Purchase of non-controlling interests
(3)
(9)
+6
-69.7%
Unrealised gains and losses relating to changes in fair value
(6)
(28)
+22
-77.1%
Increase in ﬁnance lease liabilities
(7)
(17)
+10
-59.0%
Change in accrued interest not yet due on ﬁnancial instruments
1
8
-7
-90.3%
Other items
4
(1)
+5
n.s.
(200)
(337)
+138
-40.9%
CHANGES TO NET DEBT
(a)
(a): “-”: increase/“+”: decrease.
n.s.: not signiﬁcant.
Registration document 2014
LE GROUPE LA POSTE
183
10
Review of the ﬁnancial position and results
Debt and ﬁnancial strength
10.5.2 Change in cash and cash equivalents
Le Groupe La Poste’s pro forma opening cash and cash
equivalents decreased from €2,104 million to €1,389 million
at end-December 2014, a €714 million decrease, primarily
as a result of:
f negative net free cash ﬂows of €174 million;
f use of cash and cash equivalents originating from loans
of €39 million including primarily:
− -€151 million for the redemption of a bond with a
nominal value of CHF 250 million backed by a currency
swap used to hedge the currency risk,
− + €135 mill ion from the increase in outstanding
commercial paper (€285 million outstanding at 2014
year-end),
f change in cash management financial assets of
€86 million originating primarily from +€157 million for
a maturing cash investment backed by the repayment
of a bond issue (PTA 2014) partially offset by €50 million
in additional investments in the form of negotiable debt
securities;
f use of €581 million in intercompany cash ﬂows with La
Banque Postale including:
− an investment of €355 million in the form of an
interest-bearing account with La Banque Postale;
− a €216 million decline of the debt to La Banque
Postale under the overall intercompany “payables/
receivables” position.
− -€16 million in lease ﬁnancing;
31/12/2014
(€ million)
Net free cash ﬂows
Capital increase
Change in cash ﬂows from ﬁnancing activities
Change vs pro forma
(€m)
(in %)
(174)
(876)
+702
-80.1%
0
600
-600
-100.0%
(39)
(347)
+308
-88.7%
Change in ﬁnancial assets used in cash management
86
157
-71
-45.1%
Other cash ﬂows from ﬁnancing activities
(8)
(103)
+94
-91.7%
(581)
557
-1,138
n.s.
2
(13)
+14
n.s.
Change in cash and cash equivalents
(714)
(23)
-691
n.s.
Opening cash and cash equivalents
2,104
2,127
-23
-1.1%
CLOSING CASH AND CASH EQUIVALENTS
1,389
2,104
-714
-34.0%
Intercompany cash ﬂows
Other items
n.s.: not signiﬁcant.
184
31/12/2013
pro forma
Registration document 2014
LE GROUPE LA POSTE
10
Review of the ﬁnancial position and results
Debt and ﬁnancial strength
10.5.3 Breakdown of ﬁnancial debt
10.5.3.1 Gross debt
The Group’s gross debt decreased by €66 million in 2014. It is currently €7,005 million.
The breakdown of the Group’s gross debt at end-December 2014 and at end-December 2013 is provided below:
31/12/2014
(€ million)
Bonds
Short-term Bonds
5,995
31/12/2013
pro forma
Change vs pro forma
(€m)
(in %)
6,133
-138
-2.2%
0
207
-207
-100.0%
5,995
5,925
+69
+1.2%
La Poste savings bonds
61
63
-2
-3.5%
Short-term La Poste savings bonds
61
63
-2
-3.5%
0
0
+0
-
Commercial paper
285
150
+135
+90.0%
Short-term commercial paper
285
150
+135
+90.0%
0
0
+0
-
Deposits and guarantees received
379
393
-13
-3.4%
Short-term deposits and guarantees received
353
368
-14
-3.9%
26
25
+1
+4.9%
128
132
-4
-2.7%
Medium- and Long-term Bonds
Medium- and Long-term La Poste savings bonds
Medium- and Long-term Commercial paper
Medium- and Long-term deposits and guarantees received
Accrued interest
Accrued interest
128
132
-4
-2.7%
Other
157
201
-44
-22.0%
58
103
-45
-43.9%
Other Short-term
Other Medium- and Long-term
GROSS DEBT
Short-term Gross debt
Medium- and Long-term Gross debt
99
98
+1
+1.1%
7,005
7,071
-66
-0.9%
885
1,023
-138
-13.5%
6,120
6,048
+72
+1.2%
− +€70 million from the change in fair value of the debt
(rate and credit spread effect);
La Poste’s gross bonds are made up of about 10 loans,
originally with fixed rates, some of which have been
switched to floating-rate bonds as part of floating rate
investments, and for others, converted to ﬁxed-rate again,
according to whether interest rates were forecast to rise.
f commercial paper up €135 million;
The main changes in relation to gross debt in 2014 were
as follows:
The cost of debt came to 3.04% in 2014 (4.30% before active
management).
f -€32 million drop in derivative liabilities.
f the fair value of bonds decreased by €138 million in 2014
and is currently at €5,995 million:
− - €207 million from the redemption of a CHF
250 million bond (€150 million in net outflow of
hedging instruments),
Registration document 2014
LE GROUPE LA POSTE
185
10
Review of the ﬁnancial position and results
Debt and ﬁnancial strength
10.5.3.2 Net debt
31/12/2014
(€ million)
Gross debt at the end of the period
7,005
31/12/2013
pro forma
Change vs pro forma
(€m)
(in %)
7,071
-66
-0.9%
Cash and cash equivalents
(1,389)
(2,104)
+714
-34.0%
Other assets
(1,610)
(1,162)
-448
+38.6%
4,005
+3,805
+200
+5.3%
NET DEBT AT THE END OF THE PERIOD
The Group’s net debt stood at €4,005 million at end 2014, up
€200 million compared with 31 December 2013.
f derivatives assets related to the debt (fair value of
€388 million at end 2014);
f security deposits paid in connection with derivatives,
Other assets consist of:
f investments of more than three months, a portion
of which are cash investments backing future bond
maturities, which amounted to €563 million at endDecember 2014;
posted as assets (€25 million);
f net ﬁnancial position in respect of La Banque Postale
(€634 million, including €300 million in term deposits
and €355 million in interest-bearing accounts and net
debt to La Banque Postale under “payables/receivables”
of €25 million).
10.5.4 Equity and ﬁnancial structure
31/12/2014
(€ million)
Opening consolidated equity Group share
Capital increase
Net proﬁt Group share
Dividend payments
Unrealised gains and losses on ﬁnancial instruments
Translation adjustments
Actuarial differences
Other items
Equity Group share
Non-controlling interests
CONSOLIDATED EQUITY (CLOSING)
31/12/2013
pro forma
LE GROUPE LA POSTE
(in %)
7,470
+1,145
+15.3%
0
600
-600
-100.0%
513
624
-111
-17.7%
(171)
(171)
+0
-0.0%
276
32
+244
n.s.
28
(75)
+104
n.s.
(118)
(79)
-39
+49.0%
-55
215
-270
n.s.
9,088
8,615
+473
+5.5%
269
235
+35
+14.8%
9,358
8,850
+508
+5.7%
Equity Group Share stood at €9,088 million at end-December 2014, an increase of +€473 million.
Registration document 2014
(€m)
8,615
n.s.: not signiﬁcant.
186
Change vs pro forma
Review of the ﬁnancial position and results
Debt and ﬁnancial strength
10
10.5.5 Credit rating
Fitch conﬁrmed La Poste’s AA- rating and its stable outlook on 17 September 2014, then automatically revised it to A+ with
stable outlook on 18 December, following France’s one-notch long-term downgrade.
Standard & Poor’s also maintained in 2014 the rating and outlook of La Poste.
10.5.5.1 La Poste rating
Company
La Poste
Agency
Long-term rating
Short-term rating
Outlook
Last revised
Fitch Ratings
A+
F1
Stable
18 December 2014
Standard and Poor’s
A
A-1
Stable
24 October 2014
Agency
Long-term rating
Short-term rating
Outlook
Last revised
Fitch Ratings
A
F1
Negative
18 December 2014
Standard and Poor’s
A
A-1
Stable
24 October 2014
10.5.5.2 La Banque Postale Rating
Company
La Banque Postale
Registration document 2014
LE GROUPE LA POSTE
187
10
Review of the ﬁnancial position and results
Analysis of the parent company ﬁnancial statements
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
Change
31/12/2014
31/12/2013
(€m)
(in %)
14,415
14,625
-210
-1.4%
(14,810)
(15,174)
+363
-2.4%
(395)
(549)
+153
-28.0%
Financial proﬁt/(loss)
513
340
+174
+51.2%
Non-recurring items
(20)
(21)
+0
-2.3%
Tax
265
314
-49
-15.6%
NET PROFIT
363
84
+279
+330.3%
(€ million)
Operating revenue
Operating expenses
Operating proﬁt
La Poste’s operating income consists primarily of:
f revenue from the Mail and Parcels business activities of
the Services-Mail-Parcels business unit;
f invoicing by La Poste Network to the Group client
subsidiaries;
f recharges from the shared resources unit to La Banque
Postale in respect of personnel expenses for the ﬁnancial
centres and the banking advisory line.
Operating revenue totalled €14.4 billion in 2014, down 1.4%
compared with 2013, as a result primarily of the decline in
mail volumes.
2014 operating expenses amounted to €14.8 billion, down
€363 million (-2.4%). This change is related to the effort
of organisations to adjust to the trends in their business
activities, to the speciﬁc structure cost as well as to the
additional positive effect of the CICE tax credit in the amount
of €51 million (transition from 4% to 6%).
10.6.2 Financial proﬁt/(loss)
Change
(€ million)
Net expense on loans and borrowings
Income from equity investments
Other ﬁnancial income and expenses
FINANCIAL PROFIT/(LOSS)
188
Registration document 2014
LE GROUPE LA POSTE
31/12/2014
31/12/2013
(€m)
(in %)
11
(62)
+73
-118.5%
445
348
+97
+27.9%
57
54
+3
+6.5%
513
340
+174
+51.2%
Review of the ﬁnancial position and results
Analysis of the parent company ﬁnancial statements
Net income from loans and borrowings was €11 million.
The €73 million increase compared with December 2013 is
due primarily to the interest paid on La Banque Postale’s
hybrid securities subscribed in December 2013 by La Poste.
Dividends received from subsidiaries amounted to
€445 million, including €261 million from La Banque
Postale, €86 million from GeoPost and €82 million from
Poste Immo, up €97 million. This increase was due
primarily to the improvement in Poste Immo’s net income
following some substantial capital gains from disposals in
2013 (including an intercompany disposal gain from the
10
SCI Tertiaire Saint-Romain securities in the amount of
€64 million).
Other ﬁnancial income and expenses primarily comprise
interest on term investments and reversals of provisions
on ﬁnancial instruments.
Financial proﬁt rose from €340 million at end-December
2013 to €513 million in December 2014, a €174 million
increase.
10.6.3 Net proﬁt
Pre-tax proﬁt rose by €328 million from -€230 million to
+€98 million.
Tax income decreased by €314 million to €265 million in
relation to the recognition of tax consolidation as income in
the income statement.
La Poste’s net profit was €363 million, up €279 million
compared with 2013 including an additional positive effect
of €51 million on the CICE tax credit.
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10
Review of the ﬁnancial position and results
Analysis of the parent company ﬁnancial statements
10.6.4 Five-year summary
2014
Operating revenue
Operating expenses
Operating proﬁt
2013
2012
2011
2010
14,415
14,625
14,980
15,228
15,236
(14,810)
(15,174)
(15,349)
(15,433)
(15,707)
(395)
(549)
(369)
(205)
(471)
Financial proﬁt/(loss)
513
340
286
289
277
Non-recurring items
(20)
(21)
(26)
(1)
0
Tax
265
314
175
96
76
Net proﬁt/(loss)
363
84
66
179
(117)
Share capital (€)
3,800,000,000
3,800,000,000
3,400,000,000
3,400,000,000
1,000,000,000
950,000,000
950,000,000
850,000,000
850,000,000
500,000,000
Number of shares
Revenue excl. tax
11,916
12,089
12,373
12,696
12,713
Proﬁt/(loss) before tax, depreciation
and reversals
497
219
273
638
593
Tax
265
314
175
96
76
Proﬁt/(loss) before tax, depreciation
and reversals
363
84
66
179
(117)
Proﬁt distributed
(171)
(171)
(144)
(136)
(105)
Earnings per share after tax
0.38
0.09
0.08
0.21
0.23
Net earnings per share
0.38
0.09
0.08
0.21
0.23
Dividend per share
0.18
0.18
0.17
0.16
0.21
Number of employees
212,077
218,941
221,656
226,502
236,593
Wages and salaries
6,735
6,792
6,821
6,868
7,024
Non-wage labour costs
1,557
1,546
1,528
1,374
1,322
(full-time employee equivalents per annum)
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Review of the ﬁnancial position and results
Post balance sheet events
10
10.6.5 Balance sheet
Assets
(€ million)
Non-current assets
Current assets
Cash and cash equivalents
TOTAL
Equity and liabilities
2014
2013
(€ million)
2014
2013
12,505
11,796
Equity
5,650
5,458
2,576
2,353
2,425
3,558
17,507
17,707
10.6.5.1 Assets
Non-current assets rose by €709 million including
€633 million following the increase of La Banque Postale’s
capital carried out on 18 November 2014 with the
contribution of the cash held at post ofﬁces.
The increase in current assets largely relates to a
French government receivable under the CICE (tax credit
for competitiveness and employment) (€565 million
at 31 December 2014 compared with €285 million at
31 December 2013) and on the other hand to the press
subsidy of €96 million (€46 million in 2013).
Provisions
1,839
1,814
Financial debt
6,563
6,614
Current liabilities
3,455
3,821
17,507
17,707
TOTAL
Cash and cash equivalents at 31 December 2014
amounted to €2,425 million, down €1,133 million including
€612 million related to La Banque Postale’s capital
increase.
10.6.5.2 Equity and liabilities
Equity amounted to €5,650 million at 31 December 2014, an
increase of €192 million compared with 2013.
Contingency and loss provisions amounted to €1,727 million
and ﬁnancial debt stood at €6,563 million. Current liabilities
amounted to €3,455 million.
Change
(€ million)
2014
2013
(€m)
(in %)
Trade payables maturing in less than 60 days
1,042
1,198
-156
-13.1%
17
3
+14
+475.9%
1,059
1,201
-142
-11.9%
Trade payables maturing in over 60 days
TRADE PAYABLES
Since 1 December 2008, La Poste SA applies the provisions
of the French Economy Modernisation Act (LME) by paying
its suppliers within 60 days after the invoice issue date.
Trade payables amounted to €1,059 million as at
31 December 2014, of which €671 million owing for
operating expenses and €317 million in relation to foreign
postal operators.
10.7 Post balance sheet events
None.
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Cash, cash equivalents
and share capital
11
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11
Cash, cash equivalents and share capital
Information on share capital and cash ﬂows is described in Chapter 10, Section 10.5.
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Outlook
12
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195
12
Outlook
Like many postal service operators, Le Groupe La Poste
is also affected by the digital revolution. This is reﬂected
in particular by the faster drop in mail volumes and the
reduced customer trafﬁc in post ofﬁces. It has an adverse
impact on the Group’s economic performance in the short
term.
Yet the digital revolution also represents an untapped
source of numerous growth opportunities for La Poste
which has, consequently, begun to thoroughly rethink its
business model.
The action plans underpinning the new aggressive strategic
plan “La Poste 2020: Conquering the Future” were launched
early 2014, speciﬁcally in the areas below:
f development and innovation at the service of customers;
f competitiveness, by adapting operating costs to changes
in business volumes and cutting down structure costs;
f developing synergies between the different business
units to enhance customer service;
f human resources with particular attention to training
and career development of employees.
Since 2014, these various initiatives have allowed La Poste
to contain the downtrend of the Group’s earnings and halt
the deterioration of its cash flow, in spite of a sluggish
economic environment in France. These efforts will be
continued and intensiﬁed throughout the plan period, in
accordance with the strategic roadmap and will allow the
Group:
f from 2015 onwards, to bolster the revenue increase to
nearly 3% and to return to higher operating proﬁts and
operating margins, also driven by the mail price increase
on 1 January 2015;
f in 2017 or earlier, to return to steady positive cash ﬂow,
to support the Group’s long-term growth;
f in 2020 to achieve operating proﬁt of nearly €1.9 billion
with average revenue growth of 2.2% over the 2014-2020
period.
By business unit
Below is a summary of the signiﬁcant prospects for each of
the Group’s business units:
f the Services-Mail-Parcels business unit is continuing its
Universal Postal Service mission with a high standard of
quality. It plans to develop new home services by making
the network of postmen the premier connected network
for local services. It aims to become the privileged
partner in e-commerce and a major player in urban
logistics. La Poste also wants to enhance “media mail” by
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integrating advertising mail into a multimedia offering.
La Poste intends to simplify the lives of French people by
offering them useful innovations: combined mail-parcels
range for documents and merchandise, parcel collection
from household letterboxes, home delivery options, etc.
The Services-Mail-Parcels business unit anticipates
a 6% to 7% decline in mail volumes per year over the
period, but aims to limit the decrease in its revenue and
maintain its operating proﬁt at €400 million until 2020
by developing parcels, adjusting its pricing within the
framework deﬁned by ARCEP, innovating and offering
new services by postmen;
f the GeoPost business unit plans to bolster its positioning
in the express market in France and to develop its
combined (“toB” and “toC”) network in Europe. To
this end, GeoPost will expand its service offerings:
interactive delivery, development of pick-up and dropoff points, deliveries on Saturdays in Germany, deliveries
on Sundays in the UK, return solutions in Germany,
development of pick-up services and a network of
automated postal machines with Neopost, etc. GeoPost
also plans to reproduce its European model in other
key regions worldwide while seeking to connect these
regions to the European continent.
The GeoPost business unit , driven by an average
increase in volumes of around 7% per year, forecasts
an increase in its revenue to reach nearly €7 billion by
2020 at constant scope. Accelerating its development will
allow GeoPost to deliver approximately €540 million in
operating proﬁt in 2020;
f La Banque Postale will step up its development in
all of its markets: private individuals, professionals,
corporate and local authorities. By the end of the 2020
plan, it intends to deploy 1,000 advisors for high networth customers and 1,000 advisors for professional
customers throughout the country. At the same time,
it will continue its banking accessibility public service
mission in the midst of its modernisation.
La Banque Postale is currently setting up a single
management structure with La Poste Network, aiming
to bring banking responsibility as close to customers as
possible in post ofﬁces. With a plan to invest heavily in
information systems and digital, La Banque Postale will
ﬁnish integrating its physical channels into a complete
omni-channel environment.
La Banque Postale aims to increase its NBI by 3.3% on
average per annum to reach €7 billion by 2020. With this
commercial development and control of costs and risks,
La Banque Postale has set a target of €1.5 billion in
operating proﬁt within this time frame;
Outlook
12
f the La Poste Network business unit aims to become,
f the Digital Services business unit expects its revenue
while carrying out its public service missions, a
benchmark in services and commercial development,
mainly in banking and at the service of each of the
Group’s business units. The business unit will prioritise
banking and serving each of the Group’s business units
by rolling out new local retail outlets, particularly in
urban areas: implementing new partnerships (Urban
Relais Poste pick-up and drop-off outlets) and new post
ofﬁce layouts, including the creation of new spaces for
professional customers. In rural and semi-rural areas,
the Network will strengthen the pooling of its resources
through innovative partnerships.
to grow by 35% between 2015 and 2020 by focusing on
three major pillars: the digital transformation of both the
companies’ operational processes and their customer
relations, simplifying the customer experience online
and developing online services, including the launch of
a service platform for micro-businesses and SMEs.
The Network will also simplify offerings and customer
pathways within its retail outlets. La Poste Mobile,
which is distributed in post ofﬁces, aims to have more
than two million customers by 2017, and will continue
its development with innovative offerings to best suit
customers’ interests;
Lastly, to incorporate the digital revolution into the Group,
La Poste will enable each employee to adopt the culture
and working method that best suits them and offers the
best support to customers.
The Digital Services business unit is building its
customer knowledge database in France and developing
new everyday digital service platforms. As a trusted third
party, La Poste will also be offering each French person
a digital identity, a “laposte.net” email address and a
digital safe, as part of a public utility mission.
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Profit forecasts
or estimates
13
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199
13
Proﬁt forecasts or estimates
Not applicable.
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Administrative,
management and
supervisory bodies and
Executive Management
14
14.1 Board of Directors
202
14.2 Executive Management
219
14.3 Absence of family ties, convictions and conﬂicts of interest
226
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14
Administrative, management and supervisory bodies and Executive Management
Board of Directors
14.1 Board of Directors
14.1.1 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 organisation of La Poste and France
Télécom’s public services, with Decree No. 2010-191 dated
26 February 2010 as amended, which establishes La Poste’s
initial Articles of Association and includes various provisions
relating to La Poste, and to Article 13 of the Company’s
Articles of Association.
f 12 Directors appointed by the General Meeting: upon a
proposal by the French government and/or Caisse des
Dépôts et Consignations:
− Chairman and Chief Executive Ofﬁcer, Philippe Wahl.
He is appointed by the General Meeting upon a
proposal by the French government and Caisse des
Dépôts et Consignations,
− 8 Directors appointed by the General Meeting upon a
proposal by the French government: Marie-Caroline
Bonnet-Galzy, Laurence Franceschini, Jean-Michel
Hubert, Philippe Lemoine, Françoise Malrieu, Sophie
Mantel, Christian Martin, Antoine Saintoyant,
− 3 Directors appointed by the General Meeting upon a
proposal by Caisse des Dépôts et Consignations: CDC,
represented by Pierre-René Lemas, Odile RenaudBasso, Franck Silvent;
f 2 Directors appointed by decree, representing regional
authorities and users, respectively: Jacques Pélissard,
Élyane Zarine;
f 7 staff-elected Director s: Régis Blanchot, Florence
Derouard, Bernard Dupin, Sylvie Féola, Michel Lersy,
Marie-Pierre Liboutet, Michel Pesnel.
The term of ofﬁce for Board of Directors members is ﬁve
years. Directors’ terms of ofﬁce 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.
From 1 January 2014 until the ﬁling date of this registration document, the following modiﬁcations have taken place in the
composition of the Board of Directors:
First name, last name
Appointed by
Appointment date
Replacing
Marie-Caroline Bonnet-Galzy
Co-opted by the Board of Directors,
Director representing the French
government
19/06/2014
Éric Delzant
Pierre-René Lemas
Member of the Compensation
and Governance Committee
Director representing Caisse des Dépôts
et Consignations
10/06/2014
Jean-Pierre Jouyet
The government representative and the head of the French
government economic and ﬁnancial control unit at La Poste
also attend Board of Directors’ meetings in a non-voting
capacity.
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The Board of Director’s duties, procedures and work in 2014
are described in Chapter 16.
Administrative, management and supervisory bodies and Executive Management
Board of Directors
14
14.1.2 Proﬁles of the members of the Board of Directors
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.
Director appointed by the General Meeting upon a proposal of the French government
and Caisse des Dépôts et Consignations
Philippe WAHL
Chairman of the Board of Directors
Date of ﬁrst term of ofﬁce: 01/08/2013
Chairman and Chief Executive Ofﬁcer
Term of ofﬁce expiry date: 20/12/2015
Date of birth: 11/03/1956
Attendance rate at 2014 Board meetings: 100%
Biography – Professional experience
A graduate of the Institut d’études politiques de Paris, Philippe Wahl is a former student of ENA and holds a Post-graduate
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 (1994), in 1997 he was appointed Head of Specialist Financial Services at Paribas. In
1999, he became Chief Operating Ofﬁcer 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. Appointed Chief Operating Ofﬁcer of the Havas group in 2005, he became Vice-President of the Bolloré
group in 2006. After having joined the Royal Bank of Scotland in 2007 as Chief Operating Ofﬁcer for France, he was appointed
advisor to the Global Banking and Markets Board in London and Chief Operating Ofﬁcer for France, Belgium and Luxembourg
in 2008, before being appointed Chairman of the Management Board of La Banque Postale and Executive Vice-President of
Le Groupe La Poste in January 2011. In September 2013, Philippe Wahl became Chairman and CEO of Le Groupe La Poste,
and in October, Chairman of the Supervisory Board of La Banque Postale.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Non-listed companies
f
f
Director of La Poste
Chairman of the Supervisory Board of La Banque
Postale
f
f
Permanent representative of La Poste and Director
of GeoPost and Poste Immo
Director of Sopassure
Listed companies
f
Director of CNP Assurances
f
Chairman and Chief Executive Ofﬁcer of SF2
and Sopassure
Member of the Supervisory Board of Fonds
de Garantie des Dépôts
Chief Operating Ofﬁcer of Royal Bank of Scotland PLC
and of Royal Bank of Scotland NV
Vice-Chairman of the Supervisory Board of Société
Financière de Paiements
Permanent representative of La Poste and Director
of Soﬁpost
Terms of ofﬁce expired in the last ﬁve years
f
f
f
f
Chairman of the Management Board of La Banque
Postale
Director 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 the Board of Directors of La Banque
Postale Assurance Santé, La Banque Postale Prévoyance
and La Banque Postale Assurances IARD
f
f
f
f
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14
Administrative, management and supervisory bodies and Executive Management
Board of Directors
Directors appointed by the General Meeting upon a proposal
by the French government
Marie-Caroline BONNET-GALZY
Date of ﬁrst term of ofﬁce: 19/06/2014
Director
Term of ofﬁce expiry date: 20/12/2015
Date of birth: 13/01/1958
Attendance rate at 2014 Board meetings: 100%
Biography – Professional experience
Marie-Caroline Bonnet-Galzy is a graduate of the École des hautes études commerciales (HEC) and former student of the École
nationale d’administration (ENA). Appointed deputy inspector of social affairs in 1984, then assistant to the Head of the General
inspectorate of social affairs (1986-1988), she then became assistant sales advisor to the Economic Development ofﬁce of
Cairo until 1990, Chief of Staff for the AP-HP Chief Operating Ofﬁcer (1991-1995), then Director of the General Administration
and Modernisation at the Ministry of Labour, Employment and Professional Training (1995-2000), before being appointed Head
of the General Inspectorate of social affairs in 2000. Secretary general of the ministries in charge of Social Affairs from 2006
to 2008, in February 2009, she was appointed Chief of Urban Community Services of Lille. Since June 2014, Marie-Caroline
Bonnet-Galzy has been the General Commissioner for Regional Equality (CGET).
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Non-listed companies
f
f
f
f
f
f
f
f
Director of La Poste
Director of Réseau Ferré de France
Director of the Agence de ﬁnancement
des infrastructures de transport de France
Director of the Agence de service et de paiement
Director of the Agence nationale pour la rénovation
urbaine
Director of Fonds d’amortissement des charges
d’électriﬁcation (Electriﬁcation Expense Sinking Fund)
Director of the Agence française des villes et territoires
méditerranéens durables Public Interest Group
Terms of ofﬁce expired in the last ﬁve years
f
f
204
Director of the La Mondiale Foundation
Director of the AG2R La Mondiale Foundation
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f
f
f
f
Director of the Conseil national des économies
régionales
Director of the Centre national pour le développement
du sport
Director of the Institut des hautes études
de développement et d’aménagement en Europe
Member of the Supervisory Board of Société
du Grand Paris
Listed companies
f
None
Administrative, management and supervisory bodies and Executive Management
Board of Directors
Laurence FRANCESCHINI
14
Date of ﬁrst term of ofﬁce: 24/06/2009
Director
Term of ofﬁce expiry date: 20/12/2015
Date of birth: 23/07/1956
Attendance rate at 2014 Board meetings: 33%
Biography – Professional experience
Laurence Franceschini 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 Chief of
media and cultural industries at the Ministry of Culture and Communications.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Non-listed companies
f
f
f
f
f
f
Director of La Poste
Director of France Télévisions
Director of Radio France
Director of Foreign Audiovisual
Director of Agence France-Presse
Director of the Institut pour le ﬁnancement
du cinéma et des industries culturelles (IFCIC)
f
f
f
f
f
Director of the Bibliothèque nationale de France
Member of the Supervisory Board of Arte France
Board member of the Centre national du cinéma (CNC)
Board member of the Centre national du livre
Director of the Bibliothèque publique d’information
Listed companies
None
Terms of ofﬁce expired in the last ﬁve years
None
Jean-Michel HUBERT
Director
Chairman of the Quality
and Sustainable Development
Committee
Date of birth: 18/07/1939
Date of ﬁrst term of ofﬁce: 20/03/2003
Term of ofﬁce expiry date: 20/12/2015
Attendance rate at 2014 Board meetings: 78%
Biography – Professional experience
Jean-Michel Hubert is a former student of the École polytechnique and the 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 programme.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Terms of ofﬁce expired in the last ﬁve years
Non-listed companies
None
f
Director of La Poste
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14
Administrative, management and supervisory bodies and Executive Management
Board of Directors
Philippe LEMOINE
Director
Chairman of the Compensation
and Governance Committee
Date of birth: 03/11/1949
Date of ﬁrst term of ofﬁce: 26/06/2009
(after having been Director of La Poste from 2004 to 2007)
Term of ofﬁce expiry date: 20/12/2015
Attendance rate at 2014 Board meetings: 89%
Biography – Professional experience
A graduate of the Institut d’études politiques de Paris; Philippe Lemoine holds a degree in law, and successfully passed the
French civil law open examinations; he also holds a postgraduate degree in economics. Philippe Lemoine 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
1995 to 2014, Philippe Lemoine was also Chairman and Chief Executive Ofﬁcer of the LaSer Group and sat on the Board
of Directors of GDF-Suez, BNP Paribas Personal Finance and Monoprix SA. Since 2014, he has been a qualiﬁed person at
CNIL, a position that he held from 1999 to 2009. Director of the Collège de France Foundation, the Maison des sciences de
L’Homme Foundation, the Adie Foundation, he was also co-Chairman of GS1, Vice-Chairman of the Medef Innovation and
Research Commission, Chairman of the Internet Nouvelle Génération Foundation (FING) and Founding Chairman of Forum
d’Action Modernités. In 2014, he was commissioned by the government to conduct an audit on the digital transformation of
the economy.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Non-listed companies
f
f
f
f
f
Director of La Poste
Chairman of FING
Director of the Collège de France Foundation
Board member of the Maison des sciences de l’homme
Foundation
f
f
f
Director of the Adie Foundation
Chairman of Forum d’Action Modernités
Co-Chairman of the Supervisory Board of GS1 France
Member of the Board of CNIL
Listed companies
None
Terms of ofﬁce expired in the last ﬁve years
f
f
206
Chairman and CEO of LaSer
Chairman of the Galeries Lafayette department stores company
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Administrative, management and supervisory bodies and Executive Management
Board of Directors
14
Françoise MALRIEU
Director
Chairperson of the Strategy
and Investment Committee
Date of ﬁrst term of ofﬁce: 17/12/2005
Date of birth: 07/02/1946
Attendance rate at 2014 Board meetings: 100%
Term of ofﬁce expiry date: 20/12/2015
Biography – Professional experience
A graduate of the École des hautes études commerciales (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 Chief Operating Ofﬁcer 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. Françoise Malrieu was appointed Director (2008), then Chairman of the Board of Directors
(2010) of the Société de ﬁnancement de l’économie française (funding entity for the French economy - SFEF). During 2010,
she was the deputy inspector of market professionals’ compensation. Since May 2013, she has been a member of the Board
of Directors of Institut Français des Administrateurs (IFA).
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Non-listed companies
f
f
f
Director of La Poste
Chairperson of Société de Financement de l’Économie
Française Board of Directors
Member of the Supervisory Board of Bayard Presse SA
Listed companies
f
f
Director of Aéroports de Paris
Director of GDF-Suez
Terms of ofﬁce expired in the last ﬁve years
f
Deputy inspector of market professionals’ compensation
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207
14
Administrative, management and supervisory bodies and Executive Management
Board of Directors
Sophie MANTEL
Director
Date of ﬁrst term of ofﬁce: 26/09/2013
Member of the Audit Committee
Term of ofﬁce expiry date: 20/12/2015
Date of birth: 18/10/1965
Attendance rate at 2014 Board meetings: 44%
Biography – Professional experience
A graduate of the École polytechnique (1987) and 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 France’s
Framework Law on Budget Acts in terms of staff expenditure. In 2006, Sophie Mantel became 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.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Listed companies
Non-listed companies
f
f
f
f
Director of La Poste
Director of La Française des Jeux
Board member of PMU
Director of Institut Pasteur
None
Terms of ofﬁce expired in the last ﬁve years
None
Christian MARTIN
Director
Member of the Quality and Sustainable
Development Committee
Date of ﬁrst term of ofﬁce: 24/01/2013
Date of birth: 30/11/1955
Attendance rate at 2014 Board meetings: 67%
Term of ofﬁce expiry date: 20/12/2015
Biography – Professional experience
A graduate of the Institut d’études politiques de Paris, Christian Martin holds an engineering degree from the École nationale
des ponts et chaussées, and is a former student of the École nationale d’administration (ENA). An auditor at France’s Court
of Auditors (1987-1991), from 1991-1992 Christian Martin 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).
Commissioner of Audits (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 Senior Auditor at France’s Court of Auditors
since 2004 in the fourth Chamber, responsible for the “public safety” segment.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Terms of ofﬁce expired in the last ﬁve years
Non-listed companies
None
f
208
Director of La Poste
Registration document 2014
LE GROUPE LA POSTE
Administrative, management and supervisory bodies and Executive Management
Board of Directors
14
Antoine SAINTOYANT
Director
Member of the Audit Committee
Member of the Compensation
and Governance Committee
Member of the Strategy
and Investment Committee
Date of ﬁrst term of ofﬁce: 22/04/2013
Date of birth: 20/08/1977
Attendance rate at 2014 Board meetings: 100%
Term of ofﬁce expiry date: 20/12/2015
Biography – Professional experience
A graduate from the Institut d’études politiques de Paris, Antoine Saintoyant was appointed Deputy Head of the General
Directorate of the Treasury and Economic Policy in Bercy until he graduated from the École nationale d’administration (ENA)
in 2003 (René-Cassin class). He was then an advisor (Institutions and ﬁnancial services, banks, stock market, insurance)
in the “Financial and Monetary Affairs” Department as the permanent representative of France at the European Union in
Brussels (2007-2009), then Chief of Staff of Banking Affairs at the General Directorate of the Treasury and Economic Policy
(March 2010) which later became the General Directorate of the Treasury (2009-2012). In July 2012, Antoine Saintoyant joined
the French Government Shareholding Agency (Agence des participations de l’État), ﬁrst as Head of the DC1 ofﬁce (La Poste,
Orange, Dexia), before being appointed Assistant Director of Services, Aeronautics and Defence in July 2013, then Director
of Services and Finance investments in July 2014.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Non-listed companies
f
f
f
Director of La Poste
Director of BPI France Participations
Director of BPI France Investissement
Listed companies
f
f
Board member of Orange
Director of CNP Assurances
Terms of ofﬁce expired in the last ﬁve years
f
f
f
Director of Société de Financement Local (SFIL)
Board member of ODAS
Board member of SPPE
f
f
Director of SGGP
Director of NSRD
Registration document 2014
LE GROUPE LA POSTE
209
14
Administrative, management and supervisory bodies and Executive Management
Board of Directors
Directors appointed by the General Meeting upon a proposal of Caisse des Dépôts
et Consignations
CDC, represented by:
Pierre-René LEMAS
Director
Member of the Compensation
and Governance Committee
Date of ﬁrst term of ofﬁce: 10/06/2014
Date of birth: 23/02/1951
Attendance rate at 2014 Board meetings: 20%
Term of ofﬁce expiry date:20/12/2015
Biography – Professional experience
Pierre-René Lemas holds a master of laws degree and a post-graduate degree (DES) in public law. He is also a graduate of
the Institut d’études politiques de Paris and a former student of the École nationale d’administration (ENA). After graduating
from ENA, he became Sub-Prefect, Director of the Dordogne Prefect (1980), then Val-de-Marne Prefect (1981). In 1983,
he was appointed technical advisor to the Ofﬁce of the Ministry of the Interior and of Decentralisation. In 1986, he became
Assistant Director of Political Affairs at the Ministry of French overseas departments and territories. In 1988, he was advisor
to the Minister of the Interior and Director of the Ofﬁce of the Secretary of State in charge of regional authorities. From
1989 to 1992, he was Chief of local authorities at the Ministry of the Interior; he then became Prefect of Aisne until 1994,
then Director of the DATAR (Interministerial Delegation for Territorial Planning and Regional Attractiveness) until 1995. At
the Ministry of Equipment, Transport and Tourism, he was Director of Housing and Construction (1996-1998) then Chief of
Planning, Housing and Construction (1998-2000). Chief of Administration at the Ministry of the Interior from 2000 to 2003, in
2003, he was appointed Prefect of Corsica, Prefect of South Corsica, then in 2006, Prefect of the Lorraine region, Prefect of
the Eastern Defence Zone and Prefect of Moselle. Pierre-René Lemas then became Director of the Ofﬁcial Journals, then
in 2008 Chief Operating Ofﬁcer of Paris Habitat-OPH, before being appointed Chief of Staff for the Senate Chairman in 2011,
then in May 2012, Secretary General of the French President, before becoming Chief Operating Ofﬁcer of CDC in May 2014.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Non-listed companies
f
f
f
f
f
f
Director of La Poste
Chief Operating Ofﬁcer of CDC
Chairman of the Management Board of the Fonds
de réserve pour les retraites
Chairman of the Board of Directors of BPI Group
Chairman of the Supervisory Board of Société Nationale
Immobilière
Terms of ofﬁce expired in the last ﬁve years
None
210
Registration document 2014
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f
Member of the Supervisory Board of the European
“Marguerite” Funds
Chairman of the Investment Board of InfraMed
Listed companies
f
Director of CNP Assurances
Administrative, management and supervisory bodies and Executive Management
Board of Directors
14
Odile RENAUD-BASSO
Director
Member of the Audit Committee
Member of the Strategy and Investment
Committee
Member of the Quality and Sustainable
Development Committee
Member of the Compensation
and Governance Committee
Date of ﬁrst term of ofﬁce: 12/12/2013
Date of birth: 02/06/1965
Attendance rate at 2014 Board meetings: 78%
Term of ofﬁce expiry date: 20/12/2015
Biography – Professional experience
Odile Renaud-Basso is a graduate of the Institut d’études politiques de Paris and a former student of the École nationale
d’administration (ENA) (Jean-Monnet Class). After beginning her career as an auditor at France’s Court of Auditors (1990-94),
she joined the Department of Treasury where she held positions pertaining to international, industrial and ﬁnancial issues
from 1994 to 2005. In 2005, she was appointed Director of the European Commission (DG Ecﬁn; Directorate general for
economic and ﬁnancial affairs) and continued her career in the European spheres. In early 2010, she became Chief of Staff
at 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 Executive Vice-President of Caisse
des Dépôts and Head of Savings Funds.
List of terms of ofﬁce and other positions in French and foreign companies
Current terms of ofﬁce
Non-listed companies
f
f
Director of La Poste
Executive Vice-President of Caisse des Dépôts
et Consignations, Head of Savings Funds and member
of the Management Committees of établissement public
and the CDC group
f
f
Director of Société Nationale Immobilière
Director of CDC International Capital
Listed companies
f
Director of CNP Assurances
Terms of ofﬁce expired in the last ﬁve years
None
Registration document 2014
LE GROUPE LA POSTE
211
14
Administrative, management and supervisory bodies and Executive Management
Board of Directors
Franck SILVENT
Director
Chairman of the Audit Committee
Member of the Strategy and Investment
Committee
Member of the Quality and Sustainable
Development Committee
Date of ﬁrst term of ofﬁce: 22/04/2013
Date of birth: 01/08/1972
Attendance rate at 2014 Board meetings: 100%
Term of ofﬁce expiry date: 20/12/2015
Biography – Professional experience
A graduate of the Institut d’études politiques de Paris, Franck Silvent joined the General Inspectorate of Finance in 1998 upon
his graduation from the École nationale d’administration (ENA) (Valmy class). In April 2002, he was seconded as Deputy Director
of strategy, ﬁnance, management control and accounting at Caisse des Dépôts et Consignations. Director of Finance, Strategy
and Development and a member of the Management Board (January 2005 - March 2009), then Deputy Chief Executive of
Compagnie des Alpes (March-October 2009), he then became Associate Managing Director of this group (2009-2012). In
January 2013, Franck Silvent was appointed Head of strategy, sustainable development and research for Caisse des Dépôts.
He headed up the development of the Group’s new strategic plan, in collaboration with the different divisions and subsidiaries.
In May 2013, he became Director of the Finance, Strategy and Equity Investments division of the Caisse des Dépôts Group,
responsible for managing ﬁnances, strategy, subsidiaries, equity investments and Group development. He is a member of
the Group’s Steering Committees.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Non-listed companies
f
f
f
f
f
f
Director of La Poste
Director of BPI France Participations
Director of BPI France Investissement
Board member of BPI Groupe
Director of CDC International Capital
Board member of Transdev Group
Listed companies
f
f
Director of CNP Assurances
Director of Icade
Terms of ofﬁce expired in the last ﬁve years
f
f
f
f
f
f
f
f
f
212
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 Giffre
Vice-Chairman of the Supervisory Board of Domaine
Skiable de Flaine
Member of the Supervisory Board of Looping Holding
Registration document 2014
LE GROUPE LA POSTE
f
f
f
f
f
f
f
f
f
f
f
Board member of Premier Financial Services
Director of BY Grévin (formerly Swissalp SA)
Director of Belpark BV
Board member of Grévin et Compagnie
Board member of Musée Grévin
Board member of Safari Africain de Port-Saint-Père
Board member of Valbus
Chairman of the Board of Directors of CDCE-1
Chairman of CDA Brands
Chairman of the Real Estate Company 2 Savoies
Chairman of Centrale d’investissements et loisirs
(CIEL)
Administrative, management and supervisory bodies and Executive Management
Board of Directors
14
Director appointed by decree representing regional authorities
Jacques PÉLISSARD
Date of ﬁrst term of ofﬁce: 17/12/2005
Director
Term of ofﬁce expiry date: 20/12/2015
Date of birth: 20/03/1946
Attendance rate at 2014 Board meetings: 33%
Biography – Professional experience
A former student of the Lyon Law School, and a graduate of the Institut d’études politiques de Paris (1970), Jacques Pélissard
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 the Chairman of ECLA (Lons
Conglomeration community space) since 2000. He has been deputy of Jura since 1993 (member of the Finance Commission of
the National Assembly from 1993 to June 2012 and member of the Law Commission since June 2012). On 18 November 2004,
Jacques Pélissard was elected Chairman of the French Mayors’ Association (Association des Maires de France). Regularly
re-elected for the last 10 years, he has been the Honorary Chairman of Honour since November 2014.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Terms of ofﬁce expired in the last ﬁve years
Non-listed companies
None
f
Director of La Poste
Registration document 2014
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213
14
Administrative, management and supervisory bodies and Executive Management
Board of Directors
Director appointed by decree representing users
Élyane ZARINE
Director
Member of the Quality and Sustainable
Development Committee
Date of ﬁrst term of ofﬁce: 17/12/2005
Date of birth: 05/05/1941
Attendance rate at 2014 Board meetings: 100%
Term of ofﬁce expiry date: 20/12/2015
Biography – Professional experience
After working in different administrative positions in ﬁlm and credit sales from the age of 20, Élyane Zarine joined Air France in
1968, where she worked as a salesperson, manager, training ofﬁcer, coordinator, and Head of Recruitment at the Charles-deGaulle 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 Organisation – 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.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Non-listed companies
f
f
f
f
Director of La Poste
Chairperson of CMC
Chairperson of Orgeco Paris
Director of Credoc
Listed companies
None
Terms of ofﬁce expired in the last ﬁve years
f
f
f
f
214
Director of SADIF (SA)
Director of ASH
Director of INC
Director of CISS
Registration document 2014
f
f
f
LE GROUPE LA POSTE
National chairperson of Orgeco
Director of CAL of SADIF and ASH-GIE
Full member of CNC
Administrative, management and supervisory bodies and Executive Management
Board of Directors
14
Staff-elected Directors
Régis BLANCHOT
Director
Date of ﬁrst term of ofﬁce: 01/01/2009
Member of the Strategy and Investment
Committee
Term of ofﬁce expiry date: 20/12/2015
Date of birth: 11/03/1967
Attendance rate at 2014 Board meetings: 100%
Sponsored by SUD
Biography – Professional experience
Régis Blanchot 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 returned to his position as team leader in September 2008.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Terms of ofﬁce expired in the last ﬁve years
Non-listed companies
None
f
Director of La Poste
Florence DEROUARD
Director
Date of ﬁrst term of ofﬁce: 20/12/2010
Member of the Quality and Sustainable
Development Committee
Term of ofﬁce expiry date: 20/12/2015
Date of birth: 17/07/1963
Attendance rate at 2014 Board meetings: 100%
Sponsored by SUD
Biography – Professional experience
Florence Derouard, who holds a bachelor’s degree in law, 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 (staff pay and family allowances), before moving to Centre interdépartemental de gestion
administrative de paie (the inter-departmental centre for administrative management and pay), which became the Centre
of Human Resource Services in July 2011. After having been Deputy Regional Secretary of Sud-PTT from 2001 to 2008, she
has been the departmental Secretary of Solidaires 76 since June 2014.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Terms of ofﬁce expired in the last ﬁve years
Non-listed companies
None
f
Director of La Poste
Registration document 2014
LE GROUPE LA POSTE
215
14
Administrative, management and supervisory bodies and Executive Management
Board of Directors
Bernard DUPIN
Director
Date of ﬁrst term of ofﬁce: 20/12/2010
Member of the Strategy and Investment
Committee
Term of ofﬁce expiry date: 20/12/2015
Date of birth: 10/07/1951
Attendance rate at 2014 Board meetings: 89%
Sponsored by CGT
Biography – Professional experience
After studying law, Bernard Dupin left the country in 1976 to teach at 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.
Elected to the European Post and Logistics segment of the UNI Global Union International Federation, which includes
157 trade unions representing 2.5 million employees around the world, Bernard Dupin, now a senior executive at La Poste,
is a member of the regional Economic and Social Council of Languedoc-Roussillon.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Terms of ofﬁce expired in the last ﬁve years
Non-listed companies
None
f
Director of La Poste
Sylvie FEOLA
Director
Member of the Quality and Sustainable
Development Committee
Date of ﬁrst term of ofﬁce: 20/12/2010
Member of the Compensation
and Governance Committee
Term of ofﬁce expiry date: 20/12/2015
Date of birth: 06/09/1961
Attendance rate at 2014 Board meetings: 100%
Sponsored by CGT
Biography – Professional experience
After beginning her career at La Poste as a seasonal employee in 1980, Sylvie Féola has since spent her entire career at
the ﬁnancial centre in Marseilles. A member of the comité technique paritaire (Joint Technical Committee) of that 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 Secretary General from 1997 to 2010. Represented by CGT on Committees of various social action
organisations (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.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Terms of ofﬁce expired in the last ﬁve years
Non-listed companies
None
f
216
Director of La Poste
Registration document 2014
LE GROUPE LA POSTE
Administrative, management and supervisory bodies and Executive Management
Board of Directors
Michel LERSY
14
Date of ﬁrst term of ofﬁce: 20/12/2010
Director
Term of ofﬁce expiry date: 20/12/2015
Member of the Audit Committee
Sponsored by CGT
Date of birth: 13/06/1961
Attendance rate at 2014 Board meetings: 100%
Biography – Professional experience
After working at La Poste as a seasonal employee, Michel Lersy passed a competitive employees’ 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.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Terms of ofﬁce expired in the last ﬁve years
Non-listed companies
None
f
Director of La Poste
Marie-Pierre LIBOUTET
Director
Date of ﬁrst term of ofﬁce: 09/05/2001
Member of the Strategy and Investment
Committee
Term of ofﬁce expiry date: 20/12/2015
Date of birth: 05/04/1956
Attendance rate at 2014 Board meetings: 100%
Sponsored by CFDT
Biography – Professional experience
Marie-Pierre Liboutet 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.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Terms of ofﬁce expired in the last ﬁve years
Non-listed companies
None
f
Director of La Poste
Registration document 2014
LE GROUPE LA POSTE
217
14
Administrative, management and supervisory bodies and Executive Management
Board of Directors
Michel PESNEL
Director
Date of ﬁrst term of ofﬁce: 20/12/2010
Member of the Strategy and Investment
Committee
Term of ofﬁce expiry date: 20/12/2015
Date of birth: 03/04/1952
Attendance rate at 2014 Board meetings: 100%
Sponsored by FO
Biography – Professional experience
After studying Philosophy, Michel Pesnel 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 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.
List of terms of ofﬁce and other positions in French and/or foreign companies
Current terms of ofﬁce
Terms of ofﬁce expired in the last ﬁve years
Non-listed companies
None
f
Director of La Poste
14.1.3 Government representative
Pascal FAURE
Government representative
Date of birth: 01/02/1963
Biography – Professional experience
A general Mining Engineer, graduate of the École polytechnique (X83) and the École nationale supérieure des télécommunications
de Paris (88), Pascal Faure began his career in R&D for Bell Laboratories (United States, PA) then at Apple Computer
(United States, CA). After returning to France, he joined the National Centre for Telecommunications Research (France
Télécom/CNET) as project manager in the area of communication security and encryption. From 1992 to 1995, he worked
for the Ministry of Budget on administrative IT expenditure policy. He was then appointed technical advisor responsible for
budgetary, ﬁscal, employment and regional planning affairs for the country at the Ofﬁce of the Ministry of Tourism, then
for the Minister of Regional Planning, City Planning and Integration. From 1997 to 2001, Pascal Faure held the position
of Director of Development, ﬁnancial affairs and Assistant to the Chief Executive Ofﬁcer of Institut Télécom. He was then
appointed Deputy Technical Director of the Ministry of Defence. At the same time, he held the positions of Chairman of
the Association of Telecommunications Engineers from 2001 to 2006. From 2007 to 2012, Pascal Faure was successively
appointed Vice-Chairman of the Conseil général des technologies de l’information (CGTI), then Vice-Chairman of the
Conseil général de l’industrie, de l’énergie et des technologies (CGIET), and lastly, Vice-Chairman of the Conseil général
de l’économie, de l’industrie, de l’énergie et des technologies (CGEIET). Director General of Competitiveness, Industry and
Services (DGCIS) since 5 December 2012, he was appointed Director General of Enterprises when the DGCIS became the
Directorate General for Enterprise on 17 September 2014.
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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.
M r P h i l i p p e Wa h l w a s a p p o i n t e d C h a i r m a n a n d
Chief Executive Officer of La Poste by a decree dated
26 September 2013, following the Board of Directors’
proposal to the President of France.
He is appointed from among the Director s by decree,
following a proposal by the Board of Directors.
14.2.2 Duties of the Chairman and Chief Executive Ofﬁcer
The Chairman and Chief Executive Ofﬁcer organises 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, 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-today 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 in
the above paragraph, carried out by La Poste (or to which
La Poste is party) for a unit amount of over €200 million
per transaction, 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 securitisation 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
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where a number of such actions are based on the same
or a related event, this threshold is assessed based on
all relevant actions;
h) 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;
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 before VAT of €75 million.
The Chairman and Chief Executive Ofﬁcer is authorised to
delegate these powers.
i) any material change or planned material change to
Le Groupe La Poste’s accounting practices.
14.2.3 Executive Committee
The Executive Committee is the body for discussing strategy,
consulting on all cross-functional 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 La Poste’s Compensation and Governance
Committee (Article 1.2), the Chairman and Chief Executive
Officer informs the Compensation Committee of the
appointment, compensation and planned replacement of
the executives of 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:
220
Philippe Wahl
Chairman and Chief Executive Ofﬁcer
Georges Lefebvre
Corporate Vice-President, in charge of cross-functional policies
and Group cohesion.
Philippe Bajou
Executive Vice-President in charge of Transformation
Chief Operating Ofﬁcer of La Poste Network
Chairman of Poste Immo
Yves Brassart
Executive Vice-President
Chief Financial Ofﬁcer
Paul-Marie Chavanne
Executive Vice-President
Chairman of GeoPost
Nathalie Collin
Executive Vice-President in charge of Digital Services and communications
Marc-André Feffer
Executive Vice-President, in charge of development strategy,
international and legal affairs and regulations
Sylvie François
Executive Vice-President
Head of Human Resources and Employee Relations
Nicolas Routier
Executive Vice-President
Chief Operating Ofﬁcer of the Services-Mail-Parcels business unit
Jacques Savatier
Executive Vice-President responsible for regional development
and the corporate governance bodies
Rémy Weber
Executive Vice-President
Chairman of the Management Board of La Banque Postale
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14
Philippe WAHL
Chairman and Chief Executive Ofﬁcer
Date of birth: 11/03/1956
Biography – Professional experience
A graduate of the Institut d’études politiques de Paris, Philippe Wahl is a former student of the École nationale d’administration
(ENA) and holds a Post-graduate 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 (1994), in 1997 he was appointed Head of Specialist
Financial Services at Paribas. In 1999, he became Chief Operating Ofﬁcer 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. Appointed Chief Operating Ofﬁcer of the Havas group in 2005,
he became Vice-President of the Bolloré group in 2006. After having joined the Royal Bank of Scotland in 2007 as Chief
Operating Ofﬁcer for France, he was appointed advisor to the Global Banking and Markets Board in London and Chief
Operating Ofﬁcer for France, Belgium and Luxembourg in 2008, before being appointed Chairman of the Management
Board of La Banque Postale and Executive Vice-President of Le Groupe La Poste in January 2011. In September 2013,
Philippe Wahl became Chairman and CEO of Le Groupe La Poste, and in October, Chairman of the Supervisory Board of La
Banque Postale.
Georges LEFEBVRE
Corporate Vice-President, in charge of cross-functional policies and Group cohesion.
Date of birth: 30/11/1952
Biography – Professional experience
Georges Lefebvre holds a degree in mathematics and is a graduate of ENSPTT (École nationale supérieure des postes et des
télécommunications). He joined PTT in 1970 and became Head of Personnel at La Poste du Nord regional division (19811983). 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 La Poste on behalf
of the Chief Operating Ofﬁcer (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), Executive VicePresident (2001-2002) then Chief Operating Ofﬁcer (2002-2010) of Le Groupe La Poste. Since La Poste’s change of status,
he has been Corporate Vice-President and Director of Human Resources and Labour Relations for La Poste SA. Since
September 2012, he has been Corporate Vice-President of the Group, in charge of cross-functional policies and Group
cohesion.
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Philippe BAJOU
Executive Vice-President in charge of Transformation
Chief Operating Ofﬁcer of La Poste Network
Chairman of Poste Immo
Date of birth: 09/09/1958
Biography – Professional experience
A graduate from the École nationale supérieure des PTT. in 1989, Philippe Bajou 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 Chief Operating Ofﬁcer. Philippe Bajou was a member
of La Banque Postale’s Management Board since its creation on 1 January 2006 until the end of 2012. On 19 December, 2012,
he became Group Executive Vice-President, Chief Operating Ofﬁcer of La Poste Network, a position which he will hold until
1 June 2015. On 19 February 2015, he was appointed Chairman of Poste Immo and then Executive Vice-President in charge
of Transformation on 24 February 2015.
Yves BRASSART
Executive Vice-President
Chief Financial Ofﬁcer
Date of birth: 25/08/1960
Biography – Professional experience
Yves Brassart is a former student of ENSPTT, a graduate of the EDHEC (1981) and of the Institut d’études politiques de Paris.
He also holds a post-graduate degree in accounting (DECS). Working for La Poste since 1987, he held the positions of
Director of Mail Sales/Marketing at the head ofﬁce (1987-1993) and Chief Financial Ofﬁcer for Western France (1993-1999).
In 1999, he became Chief Financial Ofﬁcer of La Poste Financial Services before also becoming Chief Financial Ofﬁcer of
the post ofﬁce Network from 2001 to 2003. In 2004, he helped create La Banque Postale, where he became Chief Financial
Ofﬁcer and member of the Executive Committee on 1 January 2006. In 2011, he was appointed Head of Finance and Strategy
of La Banque Postale, member of the Operational Committee, then member of the Management Board in 2013. On 7 April
2014, he became Executive Vice-President, Chief Financial Ofﬁcer of Le Groupe La Poste. As such, he also became a
member of the Executive Committee.
Paul-Marie CHAVANNE
Executive Vice-President
Chairman of GeoPost
Date of birth: 28/06/1951
Biography – Professional experience
Paul-Marie Chavanne is a graduate of the École centrale des arts et manufactures de Paris, he is 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 Executive VicePresident of Automobiles Citroën (1992-1997), before joining Strafor Facom as Chief Operating Ofﬁcer (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
Executive Vice-President (2010) of Le Groupe La Poste.
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Nathalie COLLIN
Executive Vice-President in charge of Digital Services and Communications
Date of birth: 26/09/1964
Biography – Professional experience
A graduate from the École supérieure des sciences économiques et commerciales (ESSEC) and recipient of a master’s degree
in corporate and tax law, Nathalie Collin began her career in 1987 as a consultant at the Arthur Andersen ﬁrm before joining
the Cité mondiale des vins et spiritueux as Chief Financial Ofﬁcer in 1990. In 1993, Nathalie Collin became the Chief Financial
Ofﬁcer of Europe for Interleaf in London. In 1997, she joined Virgin Musique France as Chief Financial and Administration
Ofﬁcer before becoming Chief Operating Ofﬁcer in 1999. In 2002, she orchestrated the merger between Virgin Musique
and its parent company, EMI Music France, and successively held the positions of Chief Operating Ofﬁcer (2002-2007) and
Chairperson (2007-2009) in the new group. In 2009, she left the music production industry for the press industry and became
Chairperson of the Management Board of Libération before joining the Nouvel Observateur group as Chief Operating Ofﬁcer
and Chairperson of the Management Board in 2011. Chairperson of SEPM and AIPG, she led negotiations with Google on
behalf of the profession, which led to the creation of the Digital Innovation Press Fund, a fund which she created and of
which she became its ﬁrst Chairperson. On 28 April 2014, she was appointed Executive Vice-President and member of the
Executive Committee in charge of Communications for Le Groupe La Poste. On 9 February 2015, she became Executive
Vice-President in charge of Digital Services and Communications.
Marc-André FEFFER
Executive Vice-President, in charge of development strategy, international and legal affairs
and regulations
Date of birth: 22/12/1949
Biography – Professional experience
Marc-André Feffer holds a master’s degree in public law, is a graduate of the Institut d’études politiques de Paris and is a
former student of ENA. He has been maître des requêtes (Master of Requests) 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 (19811984), Chief Operating Ofﬁcer 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), Corporate Vice-President of the Group (1995-2000), and Vice-Chairman of the Management Board
and General Counsel (2001-2003). At La Poste since 2004, he has been responsible for strategy and innovation, international
development and legal, real estate and regulatory affairs, and has been Vice-Chairman of the Supervisory Board of Eﬁposte
since 2005, which is now part of La Banque Postale – Chairman of XAnge Capital, and Group Executive Vice-President.
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Sylvie FRANÇOIS
Executive Vice-President
Head of Human Resources and Employee Relations
Date of birth: 11/05/1954
Biography – Professional experience
Sylvie François is a graduate of the Institut d’études politiques de Paris and holds a bachelor’s degree in law and a DEA in labour
law. Upon her graduation from 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 Executive Vice-President of Le Groupe La Poste,
Head of Human Resources and Employee Relations.
Nicolas ROUTIER
Executive Vice-President
Chief Operating Ofﬁcer of the Services-Mail-Parcels business unit
Date of birth: 07/03/1963
Biography – Professional experience
Nicolas Routier is a graduate of the Institut d’études politiques de Paris, holds a bachelor’s degree in Economics from Paris-I
Panthéon-Sorbonne, and is a graduate of ENSPTT. He joined 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 also 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 Executive Vice-President of Le Groupe La Poste, Chief Operating Ofﬁcer of Mail and Chairman of
Soﬁpost, which includes Mediapost Communication, Docapost and Viapost; since mid-2012, he has been Vice-Chairman
of the Board of Directors of Asendia (a joint venture with Swiss Post). He is also Chairman of the Professional Trade Union
of Postal Operators (syndicat professionnel des opérateurs postaux). He has been Executive Vice-President of Le Groupe
La Poste and Chief Operating Ofﬁcer of the Services-Mail-Parcels business unit since July 2014.
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14
Jacques SAVATIER
Executive Vice-President responsible for regional development and the corporate governance bodies
Date of birth: 23/10/1952
Biography – Professional experience
Jacques Savatier holds 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 Head of Sustainable Development in 2008. He has been the Director of Regional Affairs and the
Public Service since 2010. On 21 January 2014, he was appointed Executive Vice-President in charge of regional development
and the corporate governance bodies for the Chairman and Chief Executive Ofﬁcer of Le Groupe La Poste. As such, he
also become a member of the Executive Committee. He kept his management responsibilities, heading up and facilitating
relations with regional authorities and elected ofﬁcials.
Rémy WEBER
Executive Vice-President
Chairman of the Management Board of La Banque Postale
Date of birth: 18/11/1957
Biography – Professional experience
A graduate from the Institut d’études politiques 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 becoming 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 (1990-1992), then joined
Lyonnaise de Banque where he was Regional Director in charge of the Lyon network (1993-1994), Secretary-General
(1995-1997), Director of Operations (1996-1997), Executive Vice-President (1997-1999), Chief Operating Ofﬁcer (1999-2002)
and ﬁnally Chairman and CEO – a position which he held until his appointment as Chairman of the La Banque Postale
Management Board on 15 October 2013.
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Absence of family ties, convictions and conﬂicts of interest
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 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 La Poste’s knowledge, none of the (i) corporate ofﬁcers
of La Poste or (ii) members of the Executive Committee:
f have been convicted of fraud in the last ﬁve years;
f have been declared bankrupt, put into receivership or
undergone liquidation 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.
f have been subject to incrimination or official public
sanction delivered by statutory or regulatory authorities
in the last ﬁve years.
14.3.3 Conﬂicts of interest within the administrative bodies
and Executive Management
To 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.
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Article 7 of the La Poste Director's Charter, appended to the
Board of Directors’ internal policies and procedures, states
that: “Directors commit to avoid any conﬂict which could
exist between its material or moral interests and those of
La Poste or entities within its Group. He or she shall inform
the Board of Directors and its Chairman of any situation
involving him or her which could conﬂict with the interests
of La Poste or its Group, including the potential thereof
or a temporary conflict, as soon as he or she becomes
aware of such situation. In the event that such a situation
presents itself, the Director concerned shall abstain from
participating in any discussions as well as any decision
pertaining to the subject in question.”
Compensation and Benefits
15
15.1 Compensation of corporate ofﬁcers
228
15.2 Total provisions and amounts recognised for pensions and other beneﬁts
231
15.3 Stock purchase or subscription options and performance shares
231
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Compensation and Beneﬁts
Compensation of corporate ofﬁcers
15.1 Compensation of corporate ofﬁcers
15.1.1 Total compensation of the Chairman and Chief Executive
Ofﬁcer
15.1.1.1 Rules for determining
the compensation of the Chairman
and Chief Executive Ofﬁcer
La Poste currently has one executive corporate ofﬁcer, its
Chairman and Chief Executive Ofﬁcer, Philippe Wahl, who
has held this position since 26 September 2013.
The compensation of La Poste’s Chairman and Chief
Executive Officer is subject to a ministerial decision in
accordance with the Decree No. 53-707 of 9 August 1953
on national public corporations and certain organisations
which have a social or economic purpose.
This decree was modiﬁed by Decree No. 2012-915 dated
26 July 2012, pertaining to the French government’s
control over the compensation of executive corporate
ofﬁcers of public companies, which institutes a system to
limit the compensation of executive corporate ofﬁcers of
public corporations and establishments to €450,000 gross
annually.
Upon a proposal by La Poste’s Compensation and
Appointments Committee on 8 November 2013, on
12 December 2013, the La Poste Board of Directors decided,
subject to a ministerial decision, to set Philippe Wahl’s total
compensation at the ceiling instituted by Decree No. 2012915 dated 26 July 2012, i.e. total annual gross compensation
of €450,000. This compensation consists exclusively of a
ﬁxed component. However, on 31 July 2014, during their
deliberations, the Board of Directors approved the roadmap
which sets Mr Wahl’s objectives for 2014, without said
objectives entitling him to variable compensation.
15.1.1.2 Compensation paid to Mr Philippe
Wahl, Chairman and Chief Executive
Ofﬁcer, as from 26 September 2013
The table below presents a summary of all types of
compensation due to the Chairman and Chief Executive
Ofﬁcer for 2013 and 2014.
As indicated in Sections 15.1.1.3 and 15.3 respectively, the
Chairman and Chief Executive Officer does not receive
special compensation or Director’s fees, nor does he receive
stock options or performance shares.
SUMMARY OF COMPENSATION AWARDED TO THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Philippe Wahl,
Chairman and Chief Executive Officer
Compensation due for the ﬁnancial year (including beneﬁts in kind)
from 26/09/2013
to 31/12/2013
€452,846
€119,272
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)
€452,846
€119,272
Total (excluding beneﬁts in kind)
€450,000
€118,500
Gross, in €, before tax
228
2014
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15
Compensation and Beneﬁts
Compensation of corporate ofﬁcers
SUMMARY OF THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER’S COMPENSATION
2014
Philippe Wahl,
Chairman and Chief Executive Ofﬁcer
from 26/09/2013 to 31/12/2013
Amount due
Amount paid
Amount due
Amount paid
€450,000
€450,000
€118,500
€118,500
N/A
N/A
N/A
N/A
Maximum %
N/A
N/A
N/A
N/A
% awarded
N/A
N/A
N/A
N/A
€52,588
€52,588
N/A
N/A
N/A
N/A
N/A
N/A
€502,588
€502,588
€118,500
€118,500
Fixed compensation
Variable compensation
Special compensation
(a)
(b)
Directors’ fees
Total (excluding beneﬁts in kind)
Beneﬁts in kind
Total
€2,846
€2,846
€772
€772
€505,434
€505,434
€119,272
€119,272
Gross (in €) before tax
(a) Compensation paid in N+1 for year N.
(b) Deferred variable compensation paid for 2011 and 2012 (as Chairman of La Banque Postale).
15.1.1.3 Other compensation
Pension plan
Company car
The Chairman and Chief Executive Ofﬁcer of La Poste does
not receive any additional supplementary pension plan. He
receives the same supplementary pension plan as all of the
senior executives of La Poste.
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.
Directors’ fees
The Chairman and Chief Executive Officer of La Poste
does not receive Directors' fees as Chairman of the Board
of Directors and a Director of La Poste. He also does not
receive any Directors' fees for terms of ofﬁce carried out
in companies controlled by La Poste or any other form of
compensation for fulﬁlling these terms of ofﬁce.
Health and personal risk insurance coverage
The Chairman and Chief Executive Officer of La Poste
receives health and supplementary contingency coverage
applicable to all of La Poste senior executives, the
premiums of which are fully paid by La Poste.
EMPLOYMENT CONTRACT, SUPPLEMENTARY PENSION, TERMINATION OR JOB TRANSFER ALLOWANCE,
AND COMPENSATION FOR NON-COMPETITION CLAUSES
Employment contract
Yes
Philippe Wahl
Chairman and Chief Executive
Ofﬁcer
Supplementary pension plan
No
X
Yes
No
Compensation payable due
to severance or a change
of position
Yes
X
Registration document 2014
No
X
Compensation
for a non-competition
clause
Yes
No
X
LE GROUPE LA POSTE
229
15
Compensation and Beneﬁts
Compensation of corporate ofﬁcers
15.1.2 Total compensation of the Directors
The members of the Board of Directors receive Directors’
fees according to the following principles, adopted by the
General Meeting on 27 April 2011:
f the annual budget allocated to Directors’ fees represents
€230,000;
f 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 Board
Committee meeting,
− €2,000 per attended meeting for the Chairman of a
Board Committee.
If the total amount of €230,000 approved by the General
Meeting proved insufficient at the end of the 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 2014, Directors’ fees amounted to €157,500.
Directors’ fees paid to Directors
In accordance with Article 22 of the French Act of 26 July
1983 pertaining to the democratisation of the public sector,
and pursuant to Article 13 of the La Poste Articles of
Association, the Directors appointed by decree and those
representing employees carry out their term of ofﬁce free
of charge, and they do not receive Directors' fees. The
Paid to the French
government
The Directors' fees of Directors appointed by the General
Meeting representing Caisse des Dépôts are transferred to
Caisse des Dépôts.
Amounts due
for 2014
Amounts due
for 2013
Marie-Caroline Bonnet-Galzy
€6,500
NR
Laurence Franceschini
€3,900
€5,200
Jean-Michel Hubert
€19,100
€25,000
Philippe Lemoine
€14,400
€21,000
Françoise Malrieu
€23,700
€21,000
Sophie Mantel
Paid to CDC
Directors appointed by the General Meeting representing
the French government transfer their Directors' fees to the
French Treasury.
€6,500
€5,200
Christian Martin
€10,400
€19,500
Antoine Saintoyant
€27,300
€24,700
Pierre-René Lemas
€1,300
NR
Odile Renaud-Basso
€11,700
€1,300
Franck Silvent
€26,200
€19,700
NR
€5,200
Former Directors
Paid to the French
government
Paid to CDC
Emmanuel Berthier
Éric Delzant
€3,900
€3,900
Guillaume Gaubert
NR
€3,900
Olivier Bourges
NR
€1,300
Loraine Donnedieu de Vabres-Tranié
Jean-Pierre Jouyet
Sabine Schimel
TOTAL (IN €)
NR: not relevant for the year in question.
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LE GROUPE LA POSTE
NR
€35,100
€2,600
€7,800
NR
€8,500
€157,500
€208,300
Compensation and Beneﬁts
Stock purchase or subscription options and performance shares
15
15.2 Total provisions and amounts recognised
for pensions and other beneﬁts
The Chairman and Chief Executive Ofﬁcer, the only corporate ofﬁcer, does not receive any additional supplementary pension
plan, and neither do the members of the Executive Committee.
15.3 Stock purchase or subscription options
and performance shares
La Poste has not implemented any system for granting performance shares or stock purchase or subscription option grants
for any of its employees, regardless of category.
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LE GROUPE LA POSTE
231
15
232
Compensation and Beneﬁts
Stock purchase or subscription options and performance shares
Registration document 2014
LE GROUPE LA POSTE
Operation
of administrative bodies
16
16.1 Duties of the Board of Directors
234
16.2 Activity of the Board of Directors in 2014
236
16.3 Assessment of the functioning of the Board of Directors
236
16.4 Board Committees within the Board of Directors
237
16.5 Internal control
239
16.6 Compliance with the system of corporate governance in force in France
240
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233
16
Operation of administrative bodies
Duties of the Board of Directors
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, and as speciﬁed in
its internal policies and procedures, 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 units — and the multiannual 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).
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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 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
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 per transaction; 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;
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;
Operation of administrative bodies
Duties of the Board of Directors
16
g) any borrowing by La Banque Postale with a material
impact on the consolidated balance sheet of Le Groupe
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;
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 prepared by the Chairman.
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;
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.
i) the dividend policy of La Poste or any of its directly owned
subsidiaries and any change to or development in the
dividend policy;
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.
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 Director's Charter, 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 internal 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
of 10 February 2011, they incorporate the policies and
procedures of each of the four Board Committees (see
below) and the aforementioned Director's Charter. 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 Company’s knowledge, no service contract which
binds 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.
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LE GROUPE LA POSTE
235
16
Operation of administrative bodies
Activity of the Board of Directors in 2014
16.2 Activity of the Board of Directors in 2014
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 nine times in 2014. Board members’ average
attendance at these meetings was 83%. A one-day strategy
seminar was also organised in January 2014.
In 2014, the Board of Directors issued opinions on the below
items, in particular:
f the “La Poste 2020: Conquering the Future” strategic
plan and its ﬁnancial business plan;
f approved the annual and interim ﬁnancial statements;
f acquisition projects for GeoPost;
f the comparison report between the compensation of
men and women;
f capital transactions for La Banque Postale;
f the entrance of a staff-elected Director within the
Compensation and Governance Committee;
f the 2015 budget.
The Board of Directors also reviewed the annual balance
sheet, analysed the Group’s recent acquisitions, a report
of La Banque Postale’s partnerships, an update on the ﬁve
high-priority shared projects from the strategic plan, the
business progress of ﬁrst-level subsidiaries and the annual
report on the management of real estate assets.
f a capital increase for La Banque Postale;
16.3 Assessment of the functioning 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 appraisal was led by Jean-Michel Hubert; the process
has since been led by the Compensation and Governance
Committee and its Chairman, Philippe Lemoine, 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 2013 assessment of the functioning of the Board and
its Board Committees was conducted in early 2014 via a
detailed questionnaire sent to each Director who served
over all or part of 2013. 70% of Directors responded (85% of
the Board at the time of the assessment) by completing the
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LE GROUPE LA POSTE
document evaluating ﬁve topics: strategy, knowledge of the
Group’s business activities and rapport with management,
risk management and control, functioning of Board
meetings, functioning of the Committees.
These responses reﬂect the assessment of the changes
encouraged following the work carried out by the Leaders
Trust International ﬁrm for the 2012 assessment: organising
more strategic seminars, improving information provided,
etc. Other expectations expressed by the Directors were able
to be met in 2014: monitoring the application of decisions
made, acquisitions and partnerships through agenda
items formalised, making more segment information or
information relating to competition available, appointing
a staff-representative Director to the Compensation and
Governance Committee, etc.
Operation 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 Compensation and Governance Committee
(set up in 2010). Furthermore, an ad hoc commission meets
to prepare for the Board of Directors, meetings two days
before they take place.
16.4.1 Audit Committee
The Audit Committee comprises: 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 La Poste,
analysing the accounts, the main financial information,
major risk mapping and 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:
f 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;
f 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;
f reviews La Poste’s ﬁnancial disclosure policy and the
main aspects of this disclosure;
f 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 prepared for the
purposes of a given transaction, management reports
and their notes;
f 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;
f periodically reviews the Statutory Auditors’ report and
their recommendations;
f reviews the Chairman’s report on internal control
procedures;
f 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;
f 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;
f reviews the nature and scope of signiﬁcant off-balance
sheet commitments;
f makes any recommendations to the Board of Directors
on the matters above;
f more generally, reports any signiﬁcant issues that could
require the Board’s special attention to the Board of
Directors.
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16
Operation of administrative bodies
Board Committees within the Board of Directors
The Audit Committee met four times in 2014; the average
attendance of Board members was 65%.
During 2014, in addition to recurring subjects such as
reviewing the annual and interim ﬁnancial statements, risk
mapping and scheduling audits, the Committee reviewed
La Banque Postale’s internal control and risk control
processes in particular and managed the call for bids to
select Statutory Auditors.
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:
f analyses the strategic growth drivers of La Poste and its
Group in France and abroad;
f studies proposed strategic agreements and monitors
partnerships;
f reviews the multiannual business plan;
f oversees the main items of the business contract signed
with the French government.
The Strategy and Investment Committee met six times in
2014; the average attendance of Board members was 85%.
Throughout 2014, the Committee mainly worked on the
“La Poste 2020: Conquering the Future” strategic plan and
its ﬁnancial business plan, GeoPost acquisition projects,
reviewed the Group’s recent acquisitions and subjects
related to La Banque Postale (capital increase, report of its
partnerships, capital transaction projects).
f studies planned asset acquisitions or disposals within
the Group, plans to create subsidiaries or to buy and sell
equity investments for amounts exceeding €30 million;
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 La Poste provides to its customers,
as well as sustainable development at 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 La Poste
and customers, as well as on sustainable development,
especially regarding the following:
f surveying customer satisfaction with La Poste;
f analysing the quality of service provided to customers
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 ﬁve times in 2014; the average attendance of Board
members was 63%.
Throughout 2014, the Committee reviewed, in particular:
f the claims process within Le Groupe La Poste;
f the quality offered to La Poste Mobile customers;
of La Poste;
f reviewing best practices in the services provided to
customers of La Poste;
f the quality of service to corporate customers;
f the annual reports for CSR, the Group Mediator, ethics,
f reviewing best practices in terms of sustainable
development and corporate social responsibility.
and the workplace mediator;
f well-being in the workplace;
f results from the ethics climate survey.
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Operation of administrative bodies
Internal control
16
16.4.4 Compensation and Governance Committee
The Compensation and Governance Committee is
composed of: Mr Lemoine, Chairman, Ms. Féola, Mr Lemas,
Ms. Renaud-Basso and Mr Saintoyant.
With a view to preparing the work of the Board of Directors,
the Committee:
f issues recommendations on the compensation of
La Poste’s corporate ofﬁcers;
f formulates an opinion on any proposal pertaining to
the general principles of the compensation policy;
f gives an opinion on any planned capital increase
reserved for employees or bonus share awards pursuant
to Articles 32 and 33 of Act No. 90-568 of 2 July 1990
as amended, relating to the organisation of the public
service provided by La Poste and France Télécom;
f coordinates the annual assessment of the Board of
Directors.
The Chairman of the Board of Directors informs the
Committee of the appointment, compensation 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 Compensation and Governance Committee met twice in
2014; the average attendance of Board members was 70%.
Throughout 2014, the Committee notably reviewed the
management policy for key positions and Group potentials,
the management of executive succession plans as well as
the compensation and roadmap of the Chairman and Chief
Executive Ofﬁcer.
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.
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.
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16
Operation of administrative bodies
Compliance with the system of corporate governance in force in France
16.6 Compliance with the system of corporate governance
in force in France
La Poste has adhered to and referred to the Afep-Medef
Code on corporate governance since 2011, in accordance
with Article L. 225-37 of the French Commercial Code,
subject to speciﬁc legal and regulatory issues applicable
to it.
These specific legal issues arise from La Poste’s public
corporation status, and in particular, the Company falling
under the purview of Law No. 83-675 of 26 July 1983
relating to the democratisation of the public sector and
the legislative provisions of Law No. 90-568 of 2 July 1990
pertaining to the structure of the public service of La Poste
and France Telecom.
The table below lists the recommendations of the AfepMedef Code which are not applied by the Company and
corresponding explanations:
Number and purpose of the
Afep-Medef recommendation Principles of the Code
1
The Board of Directors: Board authority
1.2
Appointment of the Executive Director and method
of organisation of functions
“[…] The Board of Directors […] appoints the executive
corporate ofﬁcers responsible for managing the Company
[…] and chooses the method of organisation (separating the
functions of Chairman and Chief Executive Ofﬁcer
or uniting positions […].”
5
The Board of Directors and the General Meeting
of shareholders
5.1
Appointment and dismissal of the Executive Director
“The Board of Directors appoints and dismisses
the Chairman, the Chief Executive Ofﬁcer, the executive
Vice-Presidents responsible for the management
of the Company […].”
6
Composition of the Board of Directors: guiding principles
6.3
Equal representation of men and women
“Each Board must consider what would be the desirable
balance within its membership and that of the Committees
within it, notably in the representation of women and men,
nationalities and knowledge diversity [...].”
7
Employee representation
7.1
Employee shareholding
The French Commercial Code provides for the appointment
of one or more employee Directors, by the General Meeting
of Shareholders, once employee shareholding surpasses
the threshold of 3% of share capital.
8
Non-controlling shareholders
“It is not desirable to increase representatives of some
speciﬁc interest category or another within the Board
of Directors […] because the Board of Directors would risk
becoming a battleground for vested interests instead
of representing all shareholders […].”
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Situation of the Company and comments
The method of organisation for the La Poste Board
of Directors was set by the Decree of 26 February 2010
supporting La Poste’s initial Articles of Association.
In particular, it requires combining the positions of
Chairman and Chief Executive Ofﬁcer as well as appointing
the Chairman and Chief Executive Ofﬁcer by decree from
among the Directors upon a proposal by the Board
of Directors.
The Chairman and Chief Executive Ofﬁcer is neither
appointed nor dismissed by the Board of Directors
(Art. 14 of the Articles of Association). The Chairman
and Chief Executive Ofﬁcer is appointed by decree.
The tripartite composition of the Board of Directors is
set by the Law of 2 July 1990 (Art. 10 as amended by Law
No. 2010-123 of 9 February 2010) and by the Decrees of
26 February, 1 April 2010 and 17 March 2011 establishing
the initial Articles of Association of La Poste, the provisions
of which are set out in Article 13 of the Articles
of Association.
Nevertheless, the La Poste Board of Directors has 42.85%
women at this time.
Currently, La Poste does not have employee shareholders.
The law grants the option for a speciﬁc employee share
ownership. This provision has not been used as of this date.
The tripartite composition of the Board of Directors is
set by the Law of 2 July 1990 (Art. 10 as amended by Law
No. 2010-123 of 9 February 2010) and by the Decrees
of 26 February, 1 April 2010 and 17 March 2011 establishing
the initial Articles of Association of La Poste, the provisions
of which are set out in Article 13 of the Articles
of Association.
Operation of administrative bodies
Compliance with the system of corporate governance in force in France
Number and purpose of the
Afep-Medef recommendation Principles of the Code
Situation of the Company and comments
9
Independent Directors
9.1
“A Director is independent when he or she maintains
no relationship whatsoever with the Company, its group
or its Management, which could compromise his/her
freedom of judgement. Therefore, an independent Director
is understood to be [...] non-executive Director [...] but
also one devoid of particular bonds of interest (signiﬁcant
shareholder, employee, other) with them.”
14
Duration of the term of ofﬁce of Directors
“[…] the duration of Directors’ terms of ofﬁce, which are set
forth by the Articles of Association, must not exceed four
years […].
Staggering the terms of ofﬁce must be structured in such
a way as to avoid renewals en masse and to ensure that
the Director reappointment process goes smoothly.
Although the law does not require it, it is essential that
the Articles of Association or the internal policies and
procedures set a minimum number of shares of the
Company that each Director must personally hold,
and which must be listed in the annual report […].”
16
Audit Committee
16.1
Membership
“The members of the Audit Committee must have
ﬁnancial or accounting expertise.
The portion of independent Directors in the Audit
Committee (excluding [...] Directors representing
employees, which are not recognised) must be
at least two-thirds.”
17
The Committee responsible for selection
or appointments
16
Since the composition of the Board of Directors is set forth
by law, La Poste cannot meet the independence criteria
established by the Afep-Medef Code.
The duration of the terms of ofﬁce of members
of La Poste’s Board of Directors is provided for by law
and by decree, the provisions of which are not in
compliance with the Code. These provisions are set forth
in Article 13 of the Articles of Association.
The term of ofﬁce for Directors of La Poste is set at ﬁve
years.
Reappointment of the Board of Directors is organised
en masse, by law.
The law of 1990 reserves the right of the French
government and of other legal entities of public law,
and employees, where applicable, to hold the share capital
(see Article 7.1 above).
Since the composition of the Board of Directors is set forth
by law, La Poste cannot meet the independence criteria
established by the Afep-Medef Code.
“ The Selection or Appointment Committee plays a key role
in the future of the company since it is responsible for the
future composition of the management bodies. Also, each
Board of Directors must build a Selection or Appointment
Committee within it for Directors and executive corporate
ofﬁcers which could be independent of or part of the
Compensation Committee.”
18
The Committee responsible for compensation
18.1
Membership
The Compensation Committee […] must comprise
a majority of independent Directors […]. It must be chaired
by an independent Director. It is advisable that
an Employee Director be a member of the Committee.”
22
The termination of the employment contract in the event
of corporate term of ofﬁce
“When an employee becomes an executive corporate ofﬁcer
of the Company, it is recommended that the employment
contract that ties him or her to the Company
or a Company within the Group be terminated […]”.
“This recommendation applies to the President,
Chairman and Chief Executive Ofﬁcer […].”
The conditions surrounding the appointment of Directors
are derogatory and set by law.
The composition of La Poste’s Board is required by law and
does not allow the Company to meet the recommendation
to have an independent Director on this Committee.
The Compensation Committee has had one employeerepresentative Director since 2014.
La Poste does not have an employee corporate ofﬁcer.
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16
Operation of administrative bodies
Compliance with the system of corporate governance in force in France
Number and purpose of the
Afep-Medef recommendation Principles of the Code
23
Compensation of executive corporate ofﬁcers 23.1
Principles for determining the compensation of executive
corporate ofﬁcers and the role of the Board of Directors
“Determining the compensation of executive corporate
ofﬁcers is the Board of Directors’ responsibility [...]
and is based on proposals by the Compensation
Committee.
When determining this compensation, the Boards
and Committees must take into account the following
principles: comprehensiveness […]; balance[…];
benchmark […]; consistency […]; intelligibility
of the rules […]; measurement […].”
Partially not applicable: the Ministry in charge
of the Economy approves the compensation of La Poste’s
Chairman and Chief Executive Ofﬁcer:
f ministerial control of the Chairman and Chief
Executive Ofﬁcer’s compensation (Art. 3 of Decree
of 9 August 1953 as amended by the Decree
of 26 July 2012) after consultation;
f cap on compensation of activity (ﬁxed and variable
portion and Directors’ fees) of executive corporate
ofﬁcers of public corporations (Art. 3 III Decree
9 August 1953 as amended by the Decree of 26 July
2012) set at €450,000 gross.
23.2
Policy pertaining to the compensation of executive
corporate ofﬁcers and stock option and performance
share allocation
“The compensation of the Company’s executive corporate
ofﬁcers must be measured, balanced, fair and reinforce
solidarity and motivation inside the Company.
[…] The executive corporate ofﬁcer’s compensation is paid
according to the work performed, results obtained, and
also responsibility assumed.
[…] The general stock option and performance share
allocation policy must be the subject of a discussion within
the Compensation Committee and a decision of the Board
of Directors, upon request. […].
The Board must monitor changes in all elements
of compensation over several years with regards
to the Company’s performance.”
La Poste does not have a stock option or performance
share allocation policy since the law entitles the French
government and other public entity legal entities to hold
La Poste’s share capital.
23.2.1
Obligation to hold shares
There is no stock option allocation policy at La Poste,
and no obligation to hold shares is planned.
23.2.2
Fixed compensation of executive corporate ofﬁcers
“It can be calibrated differently depending on whether the
executive corporate ofﬁcer continuously carried out his
or her career in the Company or whether he or she was
recruited externally.
In principle, it should only be reviewed at relatively long
intervals, e.g. every three years. […] .”
Compensation of the Chairman and Chief Executive Ofﬁcer
is set by Decree (Art. 3 I of Decree 9 of August 1953,
as amended by Decree No. 2012-915 of 26 July 2012).
Items of compensation (ﬁxed and variable portions)
and the Directors’ fees allocated to the Chairman
and Chief Executive Ofﬁcer may not exceed a gross ceiling
of €450,000 (Art. 3 III aforementioned amended decree).
Allowances and beneﬁts in kind are established
by the Board of Directors.
(a) The Chairman and Chief Executive Ofﬁcer for La Poste.
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Situation of the Company and comments
(a)
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Operation of administrative bodies
Compliance with the system of corporate governance in force in France
Number and purpose of the
Afep-Medef recommendation Principles of the Code
16
Situation of the Company and comments
23.2.3
Variable compensation of executive corporate ofﬁcers
“The Board may decide to grant variable compensation
to executive corporate ofﬁcers annually or multiannually.
This different variable compensation may be cumulative,
but this accumulation must be decided on with regard to
the aforementioned principles, and in particular, those
pertaining to comprehensiveness and measurement […].”
The Board of Directors decided not to grant variable
compensation to the Chairman and Chief Executive Ofﬁcer.
23.2.4
Stock options and performance shares
La Poste does not have a stock option or performance
share allocation policy since the law entitles the French
government and other public entity legal entities to hold
La Poste’s share capital.
23.2.5
Start-of-contract, severance and non-compete allowances
The Chairman and Chief Executive Ofﬁcer does not receive
such allowances.
23.2.6
Supplementary pension plans
The Chairman and Chief Executive Ofﬁcer does not receive
any supplementary pension plan.
24
Information on the compensation of corporate ofﬁcers
and stock option and performance share allocation
policies
24.1
Ongoing information about the Chairman and Chief
Executive Ofﬁcer’s compensation
“Any element of potential or acquired compensation
of executive corporate ofﬁcers must be made public
immediately after the Board of Directors’ meeting
that approved it.”
Since the Chairman’s compensation is ﬁxed by decree,
it is published in the Journal Ofﬁciel.
24.3 and Guide (I)
Consultation of shareholders on the individual
compensation of executive corporate ofﬁcers.
“The Board must present the compensation of executive
corporate ofﬁcers to the Annual Ordinary General Meeting.
This presentation pertains to the items of compensation
due or granted to each executive corporate ofﬁcer for the
year-ended: the ﬁxed portion; the annual variable portion,
and, if applicable, the multiannual variable portion with the
objectives used to determine this variable portion; special
compensation; options, performance shares and any other
long-term item of compensation; allowances related to
starting or ending a position; supplementary pension plan;
beneﬁts of any kind.
This presentation is followed by a consultative
shareholder vote. […].”
Presenting compensation at the General Meeting does
not seem necessary as it currently stands since
the Chairman’s compensation results from a ministerial
decision known by shareholders.
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17
Employees
Introduction
246
17.1 Change in Group headcount
246
17.2 A responsible employment policy
247
17.3 Professional development, training and promotion policy
248
17.4 Diversity and equal opportunity
251
17.5 Health and safety - Quality of life at work
254
17.6 Players in HR support
256
17.7 General compensation policy
257
17.8 Change management
259
17.9 Staff policy
260
17.10 Employee shareholding
264
17.11 Summary of employee information
265
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Employees
Introduction
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 career plans. Within this context, in
2014, La Poste notably continued to roll out actions set out
in the quality of life at work framework agreement signed
in January 2013.
In order to continue developing in this rapidly-changing
environment, and to make each employee a key participant
and beneﬁciary of the Company’s transformation, La Poste
has also created the Social Pact, which is the social
component of the “La Poste: 2020: Conquering the Future”
strategic plan.
f professional development to enlighten employees about
their future, to manage and support mobility and to
better support situations involving reclassiﬁcation;
f health and quality of life at work to build a safer
environment and to be more considerate of ageing;
f managerial development and transformation of the HR
area (1);
2014 was also an important year in terms of social
democracy, with professional elections held in December,
and in terms of social dialogue, particularly with
negotiations initiated in May 2014 which resulted in three
majority agreements being signed on 5 February 2015. This
signature demonstrates everyone’s desire to support the
Company’s transformation to beneﬁt all employees.
The Social Pact includes four major focus areas:
f training in order to meet the need to adapt to changes in
business activities and to meet employees’ development
expectations;
17.1 Change in Group headcount
AVERAGE NUMBER OF EMPLOYEES
(FULL-TIME EMPLOYEE EQUIVALENTS/ANNUM)
Group
2014
2013 (a)
257,891
263,131
82.2%
La Poste parent
company (France)
17.8%
French and foreign
subsidiaries
(a) Note: The number of employees in 2013 was restated to take into
account the change in scope of consolidation following the initial
application of IFRS 10 and 11 (see Chapter 20, Note 3). The impact
for 2013 was 3,238 full-time equivalents/annum.
(1) The Institute of Management is intended to train, develop and open up Group senior management to the outside world.
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9.5%
French subsidiaries
8.3%
Foreign subsidiaries
17
Employees
A responsible employment policy
17.2 A responsible employment policy
La Poste is one of the leaders in the French job market.
It follows a responsible employment policy in a difficult
economic context and environment, characterised by
reduced mail volumes and declining visits to post ofﬁces.
Changes in headcount are solely due to natural departures
and hires. La Poste’s employment policy promotes
permanent contracts for employees, which accounted for
94.6% of La Poste parent company’s headcount in 2014,
and is based on a dynamic recruitment policy which actively
supports integrating young people into employment and
encourages social inclusion.
La Poste is convinced that the quality of recruitment
processes, which recognise 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 Neighbourhoods 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.).
NUMBER OF PERMANENT CONTRACT HIRES
FROM EMPLOYEES WHO PREVIOUSLY WORKED
UNDER TEMPORARY CONTRACTS
At year end
2014
2013
Permanent contracts
1,379
1,390
In accordance with the agreement signed with the
French government, 1,000 young people with few or no
qualiﬁcations, acquired new skills or known qualiﬁcations
during the 2013-2014 period. La Poste intends to offer
these young people permanent contracts once they satisfy
the employment criteria on which they were trained under
temporary contracts.
Out of the total number of permanent contract recruitments
in 2014:
f women accounted for 47.5%;
f people aged over 45 accounted for 7.6%.
La Poste has hired 86 disabled people under permanent
contracts, in accordance with the commitment made in the
social agreement signed on 8 March 2012 to beneﬁt people
with disabilities.
La Poste has a low staff turnover rate (3.11% in 2014, 3.25%
in 2013 and 2.82% in 2012).
LA POSTE TURNOVER RATE
La Poste fulfilled its commitment to recruit
15,000 employees under permanent contract over the 20122014 period. After the 5,211 permanent contracts hires
made in 2012, the Company recruited 5,298 new employees
under permanent contracts in 2013 and 4,525 in 2014.
At year end
2014
2013
Turnover rate
3.11%
3.25%
As part of its recruiting effort, La Poste committed
to integrate 3,000 people into the Company who had
previously worked under temporary contracts over the
2013-2015 period. Any application from an individual who
has previously held a position at La Poste is given priority,
when recruiting staff under permanent contracts for the
same position.
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17
Employees
Professional development, training and promotion policy
17.3 Professional development, training and promotion
policy
The Social Pact, which supports the Group’s “La Poste 2020:
Conquering the Future” strategic project, made professional
development and training key HR management policies.
Having employees participate in and beneﬁt from La Poste’s
transformation involves providing anyone who wishes the
opportunity to build their own professional development
plan with the Group. As a cornerstone of professional
development, training addresses two challenges at once:
supporting the skill development necessary to develop the
Company and meet the individual needs of employees in
terms of their career path.
17.3.1 Professional development
La Poste promotes professional development that respects
individuals and promotes diversity in professional projects,
the ultimate goals being:
f 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 position, such as
moving to the public sector or even creating a business;
f to secure the loyalty of La Poste employees by offering
more possibilities for career development;
f to support the Company’s modernisation by allowing
skills to be mobilised wherever and whenever they are
needed;
f to consolidate the introduction of skills-based HR
management with progress made in training and
promotion.
In October 2014, La Poste organised its second annual
Career Development Week, during which employees
were able to discover all of the Group’s business
activities and develop their career path through more
than 1,100 demonstrations, conferences, meetings and
workshops throughout the country and in every business
unit.
17.3.1.1 Internal mobility
La Poste is looking to develop career advancement
opportunities within the Group.
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To this end, in 2014, a catalogue was rolled out, grouping
together all positions performed in the Company in
subsidiaries and job families in common with all of
La Poste’s business activities operations. This simple
and comprehensible shared reference guide will help
build numerous and varied career paths at La Poste on
a company-wide scale. It is going to allow the Company
to develop and share workforce and skills management
planning throughout all of the Company’s business units.
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 advisors network or career advancement advisors
divided up between the Company’s different business units.
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.
In 2014, the Group reinforced each employee’s ability to
actively participate in their own professional development
by opening a site dedicated to professional development,
which is accessible to everyone via Internet and Intranet.
Lastly, La Poste continued developing cross-career paths
between business units and professional ﬁelds. As a result,
in 2014, 403 employees from the Services-Mail-Parcels
business unit beneﬁted from a skills enhancement scheme,
by alternating between periods in the post ofﬁce and periods
at the training facility, which has enabled them to become
counter clerks within the post ofﬁce network.
17
Employees
Professional development, training and promotion policy
17.3.1.2 External mobility
La Poste helped 172 employees transfer to the public sector
in 2014, of whom 97.9% stated that they were satisﬁed or
very satisﬁed with their career path.
Public sector mobility
In response to employees’ requests for mobility towards
one of the three public functions (French government, local
government and hospitals), La Poste introduced a legal
process of secondment, then transfer, of state employees.
This exceptional measure common to the three public
functions 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 employees 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.
Business creation
La Poste leads an active policy to support entrepreneurial
projects expressed by its employees, organised around
five principles: initiative and voluntary service of the
entrepreneurial employee, equal treatment, access to
information and transparency, conﬁdentiality of the process,
and individualised 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 specialised advisors,
access to training and planning working hours, ﬁnancial
aid, post-creation follow-up and a right to return to the
Company.
In 2014, 132 employees with plans to start or take over a
business succeeded in their plans.
17.3.2 Training
2014
2013
3.5
3.6
156,936
163,822
666,231
731,543
Training expenditure as a percentage of payroll
Number of employees trained at least once
(a)
Number of training days (a) Number of training days provided.
17.3.2.1 Training challenges
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 and 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 employees’ expectations in terms of their individual
recognition and professional development.
In 2014, this policy resulted in a very high rate of access
to training: for the second consecutive year, 8 out of 10
employees attended at least one training course. This
commitment must allow each employee to obtain and
maintain the skills necessary to accomplish their job and
career path.
Thus, Le Groupe La Poste’s 2014 training project falls under
a dynamic policy in developing employees’ skills.
Special priority was given to the following objectives:
f supporting professional development and individual
career paths;
f encouraging access to training for each employee;
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Employees
Professional development, training and promotion policy
f developing internal career paths in relation to the
Company’s skill requirements;
f supporting managerial skills development and
professionalising HR employees;
f actively helping to integrate young people into the
workplace through work studies and the employment
programme for the future (“emplois d'avenir”);
f helping to develop fundamental knowledge and
encouraging skill development, particularly in the entry
job levels.
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 La Poste’s part-time education
policy:
f 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;
f pre-recruitment, especially for “core business” jobs
(postmen and financial advisors in particular), taking
into account recruitment needs.
The programmes offered by La Poste allow participants to
receive diplomas or professional accreditation, from a 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 workstudy programmes during the 2013-2015 period. Despite
the adverse economic environment, 5,106 and 4,201 young
people received an apprenticeship or a vocational training
contract in 2013 and in 2014, respectively.
17.3.3 Promotion
17.3.3.1 Promotion
17.3.3.2 Qualiﬁcation-based 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:
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 programme.
f recognition of professional achievement to advance one
classiﬁcation level;
f recognition of professional potential to advance several
classiﬁcation levels;
f recognition of professional experience to advance one
classiﬁcation level based on merit and seniority.
11,985 employees were promoted via one of these three
promotion channels in 2014. This represents a promotion
rate of 5.6%. 40,323 employees have been promoted over
the past three years.
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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.
Employees
Diversity and equal opportunity
17
17.4 Diversity and equal opportunity
La Poste has followed an active policy to promote
equal opportunities and diversity for many years. This
commitment is reaffirmed at the highest level of the
Company.
The Diversity-Equal Opportunities Department (DDEC)
manages La Poste’s diversity from an HR perspective. The
DDEC leads an inter-business unit Committee as well as
a diversity officer network in the regional structures in
order to roll out actions pertaining to diversity and equal
opportunities throughout the Group.
17.4.1 Promoting employment and the integration of disabled
or unemployable workers
As a socially responsible company, Le Groupe La Poste
implemented a proactive policy in favour of the employment
and professional development of people with disabilities or
those unﬁt for employment. The Handicap policy is based
on social dialogue and the signing of triennial company
agreements. In March 2012, La Poste signed a fifth
agreement in favour of employing disabled employees. This
was the ﬁrst agreement to be approved by DIRRECTE.
This agreement gave new breadth to the policy beneﬁting
disabled employees. It concerns recruiting, integrating
and maintaining employment and training of people with
disabilities, supporting the disabled and sheltered sector
as well as awareness-raising initiatives.
Its application resulted in a commitment to recruit at least
480 people with disabilities over the period. By late 2014,
these goals were surpassed, with 643 recruitments made
under permanent contracts, under work-study programmes
and under temporary contracts for a six-month period or
longer.
Furthermore, initiatives have been put in place to maintain
the employment of people with disabilities, and already
more than 2,000 employees have received assistance at
least once, such as having their workstations rearranged,
having hearing aids or orthotics paid for, having received
adapted transport assistance or having received facilitated
access to training or career assistance.
The agreement also confers two special authorisations
for paid absences related to living with the disability or the
process to recognise a worker’s disabled status.
Other commitments made in the Handicap agreement
include, in particular, improving quality of life at work,
guaranteeing easier access to professional development
and training and developing a policy of partnerships with
different specialised organisations to train and support
disabled workers.
To roll out all of these actions, La Poste relies on a network
of occupational physicians, social assistants and disability
officers , who have been trained in commitments made
to benefit disabled people (recruitment, maintaining
employment, accessibility, etc.). 550 members of CHSCT
were trained at the end of May 2014. An e-learning training
course for managers regarding this same subject is in the
process of being rolled out.
In addition, the Company has committed to increasing
purchases from the disabled and sheltered sector for up
to €26.3 million. This goal was surpassed with more than
€32 million in purchases from the disabled and sheltered
sector throughout the duration of the agreement (20122014).
Major work was carried out with the Group Communications
Department and the business units to make communication
mediums accessible, such as local newspapers, “Jourpost”,
as well as in the Information Systems Departments to make
applications used by employees accessible.
The Group organised the third “Handifférences” award.
An internal corporate event open to all employees, it is
intended to hear the local best practices that make the
working conditions and lives of disabled people at La Poste
easier on a daily basis. The most innovative projects in
the Company were then rewarded in June 2014, the ﬁrst
prize being bestowed to representatives of the ToulouseLarrieu Parcel ofﬁce for a project on integrating a disabled
apprentice.
La Poste is also a partner of ADAPT (Association for the
social and professional integration of disabled people) and
the Disabled Employment Week (SEPH). It participates in
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Employees
Diversity and equal opportunity
this event by organising tangible initiatives at the national
and regional levels. This year’s theme is “All different, all
efﬁcient”. In this respect, in addition to events and activities
organised throughout the country, a game was launched
nationally in order to raise all employees’ awareness
of disabilities. It includes approximately 100 questions
based on disability, and employees are invited to challenge
their colleagues on their knowledge of the subject and
La Poste’s commitments. Nearly 10,000 employees actively
participated in this challenge in 2014.
This voluntary policy enabled the Company to reach a rate
of employment of disabled workers of 4.11% in 2014. This
rate was 3.74% in 2013. The Company now has more than
8,000 employees with recognised disabilities.
17.4.2 Gender equality
17.4.2.1 Signing agreements on
professional equality and gender diversity
of promotions obtained were for women at La Poste. Gender
diversity is encouraged at all levels of the Company.
Gender equality is a key part of the social commitments
made by La Poste, and has been incorporated into staff
agreements since 2005.
Over the three years of the second Equality agreement, the
salary gap between women and men remained very low
overall and continues to decline. The gap was 3.1% against
women state employees and 0.9% against private women
employees in 2014.
They broach all topics: promoting gender diversity in
hiring and employment, guaranteeing equal professional
development between men and women, guaranteeing
equal compensation levels and career advancement,
guaranteeing equal access to training, raising awareness
and communicating to employees and developing a good
work/life balance.
17.4.2.2 Taking parenting into
consideration
At the end of 2014, negotiations were opened with social
partners to sign a third triennial agreement on these
subjects.
Furthermore, special attention was paid to career
development for women in senior management and
Steering Committees. On 9 April 2013, the Group signed
a framework agreement with 16 other large groups and
the Minister of Women’s Rights in favour of professional
equality between men and women in order to feminise
governance bodies.
Consequently, the proportion of women among senior
executives was 29% in the Company and 25% for the Group
Executive Committee. Permanent contract recruitment was
also nearly balanced (with 47.5% women in 2014) and 52%
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As a signatory of the Company Parenthood Charter, La Poste
included and highlighted the notion of facilitating parenting
in professional life as one of its primary commitments in the
2011 Equality agreement, through a large-scale effort to
raise employee awareness of this issue. The goal is to offer
them tools to better understand and balance their time. A
study on paternity leave for employees who are fathers was
conducted in 2013 in order to understand what motivates
fathers to take paternity leave and to analyse the potential
barriers preventing some from taking this leave.
Parents of young children receive special authorisations for
paid leave. Furthermore, additional emergency childcare
services, educational support and home childcare
assistance are currently being tested out. La Poste also
implemented special provisions for parents of disabled
children: flexible working hours, holiday planning or
authorisations for paid leave.
Employees
Diversity and equal opportunity
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17.4.3 Promoting all types of diversity in the Company
Le Groupe La Poste’s Code of Professional Ethics as well as
the Company’s internal policies and procedures outline the
Group’s commitments towards preventing discrimination.
Furthermore, La Poste has been a signatory to the
Corporate Diversity Charter since 2006.
This commitment in favour of promoting diversity and equal
opportunity includes combating all forms of discrimination.
Promoting diversity has gained momentum with initiatives
being implemented throughout the entire Group.
Bolstered by the variety of its employees’ jobs and skills, the
Group encourages diversity within its business units, which
reflect the society ’s diversity through various business
activities.
La Poste holds the Diversity Seal of Approval for all of
its business activities granted for the first time in 2009,
and granted to the group for the second time in 2013
for a period of four years. This label rewards all of the
Company’s commitments and best practices to promote
equal opportunities and discourage discrimination.
La Poste is thus continuing its initiatives to raise awareness
on diversity to its managers, to the HR group and to all
employees. In 2014, more than half of employees newly
appointed to senior management positions have been
trained and informed of notions regarding diversity and
equal opportunities.
17.4.3.1 Age management
and intergenerationality
La Poste has implemented an action plan for age
management in order to encourage the integration,
employability and development of both younger and older
people’s skills. Negotiations with unions resulted in the
signing of an agreement (on 22 January 2014) regarding
the generational contract, in order to respond to three
challenges: long-term employment of young people,
recruiting seniors and keeping them in employment and
knowledge and skills transfer.
The commitments made by La Poste in this agreement
involve managerial changes which require more attention
to exchanges between generations and intergenerational
fairness.
For La Poste, combating stereotypes requires reafﬁrming
one of management’s roles, which is to maintain their
team’s cohesion and to develop the sharing and transfer
of knowledge. This is why, in November of 2014, La Poste
became involved with the organisations Valeurs et
développement (1) and IMS-Entreprendre pour la Cité (2),
and the participation of other large corporations, in
order to launch a programme to research stereotypes
and generations. This programme will develop a general
optimisation tool for age management policies and create
an intercompany benchmark.
17.4.3.2 Commitment in favour
of neighbourhoods
Located throughout France, La Poste is an economic
stakeholder playing a specific role in urban priority
neighbourhoods, which are often characterised by higher
levels of economic and social difﬁculties, particularly among
young people. Since 2008, La Poste has been involved in
national efforts to encourage the professional integration
of young people from these neighbourhoods. La Poste
helps offer young people prospects for developing skills
and employment and supporting the relationship between
people who live in these areas and the professional world.
La Poste was also a signatory of the Corporations and
Neighbourhoods Charter for 2013-2014, committing to
encourage employment access or business creation for
inhabitants of working-class neighbourhoods, which
would also promote the economic, social and cultural
development of these neighbourhoods.
Le Groupe La Poste has been a partner of the association
called “Our Neighbourhoods Have Talent” ( NQT) to
professionally integrate young graduates from priority
neighbourhoods and disadvantaged social backgrounds.
This cooperation has resulted in tangible actions throughout
the country, with the implementation of sponsorships
by company volunteers to support the jobless towards
employment as well as annual meetings between young
graduates and senior managers in the Company.
Le Groupe La Poste is involved in another project via a
partnership with Second-Chance Schools (E2C) to integrate
young people between the ages of 18 to 25 who left school
without qualiﬁcations. Employees have the opportunity to
be a sponsor and support these young people in mastering
basic knowledge and then preparing them for professional
integration by way of short-term internships in the
Company.
(1) Firm handling HR matters, notably diversity.
(2) IMS-Entreprendre pour la Cité, chaired by Jean-Paul Bailly, Honorary Chairman of Le Groupe La Poste, supports corporate social commitment.
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Employees
Health and safety - Quality of life at work
17.4.3.3 Afﬁrming personal convictions
in the workplace
Le Groupe La Poste is completely neutral to political
opinions, philosophical or religious beliefs. The Group
strictly prohibits any indoctrination in the workplace and
ensures the total respect of its employees’ private lives.
Due to its extensive regional presence, managers can be
faced with practices, requests or reactions from employees
related to the affirmation of religious convictions, so a
booklet has been written for managers in an effort to
help “day-to-day life” and provide practical responses to
questions pertaining to religious subjects. The responses
provided in this document are based on the general principle
of respecting the private lives of employees and service
rendered to customers, while taking into consideration
speciﬁc issues related to the fact that La Poste carries out
public service missions.
17.5 Health and safety - Quality of life at work
17.5.1 Preventing professional risks and work-related accidents
La Poste continued its efforts in preventing accidents at
work, psychosocial risks and painful physical conditions.
All of the actions taken by the Company in 2014 to prevent
work-related accidents were the subject of a summary and
discussions in the National Committee for Occupational
Health and Safety at Work (Commission nationale Santé et
sécurité au travail) on 30 October and on 17 December 2014.
17.5.1.1 Preventing work-related accidents
and musculoskeletal disorders
La Poste is taking action on several levels:
f the group is continuing to roll out new work equipment
to reduce risks. In regards to road-related risks, the
gradual elimination of motorised two-wheelers is
continuing specifically due to the introduction of the
new three-wheel vehicle, the Staby. Certain departments
started requiring the use of helmets, and a study was
launched with a view to making a decision on this subject
nationally in 2015;
f a new training course for Mail managers was launched
on the prevention of risks associated with manual
handling risks and poor posture;
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f a new driving accreditation system was launched. It
includes a medical visit, familiarising yourself with
the vehicle with an expert or a designated person who
has been approved and trained, once you start the job,
follow up interviews by management, adapted training
according to CNAMTS recommendations, depending
on the driver’s activity, and support and coaching if
necessary. This programme also concerns permanent
employees, people recruited under temporary contracts,
or professionalisation or apprenticeship contracts.
17.5.1.2 Preventing psycho-social risks
and work/life balance
Joint rules that apply to all parties in the social dialogue in
the event of change help to maintain a high quality social
dialogue as well as to conduct studies on the impact of
change, leading to subsequent action plans.
In addition to training deployed on management
fundamentals, a training programme created with the
ANACT is being rolled out to improve the assessment and
to prevent psychosocial risks within the Company.
Employees
Health and safety - Quality of life at work
A new plan to prevent and handle situations involving
psychological and sexual harassment was launched in the
autumn of 2014 after consulting with staff representatives
during the ﬁrst half of the year and training participants on
this subject.
The telephone-based listening and psychological support
system was rolled out throughout the country with a
number for all employees and a number specifically for
managers and HR employees.
More than 1,000 employees worked remotely as part of
the June 2013 agreement, which improved their work/life
balance.
17
17.5.1.3 Medical monitoring
The immediate measure deﬁned under the quality of life
at work agreement of 22 January 2013 to strengthen the
monitoring of employees’ occupational health was renewed
in 2014 so that every employee is called in for a medical
visit every two years. Medical coordination teams have been
reinforced. At end 2014, La Poste had 160 occupational
doctors (152 in 2011), 150 occupational nurses (105 in 2011)
and 109 medical secretaries (93 in 2011). More than 92% of
employees had received a medical visit within two years as
at the end of 2014.
17.5.2 The functioning of bodies
The national committees for Occupational Health and Safety,
whose missions had been redeﬁned under the quality of
life at work agreement, met regularly throughout the year.
The quality of the reports and studies submitted to the
committees has been enriched. These committees have, in
particular, negotiated new prevention plans such as the new
plan to prevent and handle situations involving psychological
and sexual harassment, the new driving accreditation
system, the prevention of improper behaviour, particularly
in the Network, and new procedures for organising mail
delivery.
A consultation has also been made to prepare for the
renewal of CHSCT following the 2014 professional elections.
17.5.3 Quality of life at work initiatives
17.5.3.1 Taking into consideration quality
of life at work at La Poste
f quality of staff support (including professional
Paying attention to quality of life at work reflects the
fact that the well-being of employees depends upon
the Company’s organisation, the way it operates, its
management and dimensions such as acknowledgement,
trust and empowerment. This notion is currently the focus
of La Poste’s attention, conﬁrmed in the quality of life at
work agreement (January 2013) and the “A future for every
employee” agreement (February 2015).
This notion deals with practicalities pertaining to carrying
out work, such as organising breaks, or the possibility of
being replaced in order to participate in a training course,
for instance, and also on career paths and on career
perspectives offered by the Company.
It constitutes an ongoing requirement in each project and in
each mode of organisation, in order to guarantee:
f quality of work (structure, content, meaning as well as
working conditions);
f quality within the community and management
development, change management and initiatives
encouraging work/life balance).
Among the initiatives and measures demonstrating
La Poste’s commitment towards quality of life at work are:
f access to training, which has been considerably
increased since 2013;
f the implementation of a listening and psychological
support system available 24/7 for any employee
experiencing difﬁculties in their personal or professional
life;
(professional relationships, managers, colleagues and
customers);
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Employees
Players in HR support
f the development of teleworking: at end 2014, more than
1,000 employees worked remotely, with an average of
two hours, commute time gained per teleworking day;
f the local HR relationship, with nearly 1,100 easily
accessible HR managers who are ready to handle
employees’ HR needs;
f part-time work arrangement for senior workers.
For all the above mentioned topics that pertain to quality of
life at work, the “A future for every employee” agreement
signed in February 2015 deﬁne further progress such as
stronger possibilities for professional advancement, training
development, retaining employees who have become unﬁt
for their existing jobs, etc.
17.5.3.2 Trials pertaining to quality of life
at work in 2014
Alongside with this requirement to better take into account
all aspects of quality of life at work, La Poste has also
chosen to go a step further. The initiatives led on quality
of life at work in 2014 were based on field work carried
out at the end of the previous year via interviews led with
Group operational and functional managers. The goal of
this process was to identify their expectations and priorities.
These interviews identiﬁed needs, which, once considered,
resulted in the implementation of some 20 trials, which
tested out the initiatives and evaluated their results in order
to continue and even broadly adopt the practice tested out.
These trials pertains to structuring work/life balance, work
relationships, dialogue about work, etc. They will enable
the Group to develop new initiatives after they are analysed.
17.6 Players in HR support
17.6.1 Professionalisation of local HR managers
Tasks of the local HR department cover two major
dimensions:
All HR managers share the same missions, regardless of
home unit afﬁliation. There are four main missions:
f local HR management directed towards operational
f providing information about and dealing with
managers to help them facilitate social dialogue and
change management at the local level. This requires
strong technical skills;
frequently asked questions pertaining to administrative
management;
f a more people-oriented local HR relationship, which
is speciﬁcally reﬂected by general HR representatives
being made available to employees who are capable of
addressing, at a basic level, all aspects of professional
life while respecting people’s conﬁdentiality and freedom
of expression. This second dimension calls for more
interpersonal skills, and speciﬁcally relies on adopting
a proactive stance.
Nearly 1,100 local HR managers have been sent to every
region and to each of La Poste’s business units. Several of
the Group’s subsidiaries have also retained this principle.
Each employee and each manager benefits from their
services.
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f providing information and giving advice about
professional development;
f being a trusted advisor for employees who are
experiencing a difﬁcult situation, regardless of whether
it is professional or personal;
f supporting managers in ensuring the management and
professional development of team members.
To accomplish this, they must meet with each manager in
their area at least twice per year, and each employee at least
once every two years.
Employees
General compensation policy
13 national training days for local HR representatives were
rolled out from November 2013 to April 2014 to enable them
to:
f acquire a shared vision of HR’s role and local HR
17
f share methodologies:
f become informed about detecting sensitive situations;
f developing peer exchanges.
activities;
17.6.2 The HR role of managers
In order to assist and support new managers, in 2013, a
speciﬁc obligatory training programme based on the HR
role of the manager was put in place. This training, which
is given before, or at, the position start date, allows the
manager to:
f know how to perform his/her role in supporting
employees, and in particular in supporting their
professional development;
f support his/her group in the process of change;
f know how to create individual and collective quality of life
This training course, which lasts for two days, is mandatory,
and provides an opportunity for managers from all the
business units and all management levels to meet and
mingle. The group plans to train 3,000 new managers every
year. In addition to the new manager training programme,
and in order to support them during the ﬁrst months after
assuming their new position, La Poste now designates an
experienced contact for each new manager.
In 2014, 1,922 new managers of La Poste were trained in
their HR role.
at work conditions within his/her team.
17.7 General compensation policy
17.7.1 Wage policy
Special measures apply to state employees in the public
sector (points accumulation system).
For employees under contract, the compensation policy is
set out in the Collective bargaining 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 and production staff
while keeping its payroll costs necessarily competitive.
The compensation policy primarily comprises an annual
negotiated change as well as a certain progression in years
of service recognising 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.
For managers, the compensation policy includes individual
ﬁxed pay increases based on the contribution made and
potential held, and variable bonuses based on annual
quantitative and qualitative targets. Sales staff (more than
10,000 individuals) receive a commission scheme that is
appropriate for the sales policy, including in the banking
area.
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Employees
General compensation policy
17.7.2 Employee incentive-scheme
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 employees regardless of
their compensation level or their business unit afﬁliation.
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 enables to value the efforts accomplished
and to link employees' working with the Company’s
smooth operation and proﬁts. These incentives amounted
to €84.2 million for 2014.
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 (FO,
CFDT, CFTC, CGC and UNSA) signed two company
agreements respectively instituting the Group Savings Plan
(PEG) and Collective Retirement Savings Plan (PERCO).
Responsible Investment) assets. Accordingly, the FCPE,
La Poste Responsable Monétaire, which comprises nearly
36% of employees’ investments, has invested 52% in SRI.
SRI ﬂoor rates are also applied for bonds and equity funds.
These group savings plans are offered to all private-sector
employees and state employees of Le Groupe La Poste
after three months of employment in the Company. In
fact, subsidiaries can become members of them once
they meet the terms of membership set by the agreement:
subsidiary and/or equity investments of La Poste for at least
50% and whose accounts are consolidated at the Group
level. Currently, nine subsidiaries have chosen to join the
Group employee savings plans (including Mediapost, Poste
Immo and Chronopost, among the largest). Employees of
La Poste and its member subsidiaries have the possibility
to save money in employee savings plans, making voluntary
deposits and/or by investing their incentive and/or proﬁtsharing bonus, to beneﬁt from advantageous tax conditions
as well as a contribution from La Poste. Since 2014,
La Poste has allowed its employees to transfer up to 10 paid
days off from their accrued leave to their PERCO, thanks
to the amendment signed with trade union signatories.
Investments are made in diversified investment funds
exclusively dedicated to La Poste, in exchange for a ﬁve-year
lock-in for PEG and until retirement for the PERCO.
La Banque Postale Asset Management (LBPAM) manages
these employee investment funds. 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 five Mutual funds cover all asset classes: a moneymarket fund, a bond fund, an equity fund, a multi-vehicle
fund and a solidarity fund, enabling everyone to choose
their investment according to their risk/return profile.
The mutual funds are invested heavily in SRI (Socially
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La Poste plans to pay a contribution under PEG and PERCO
agreements. In 2014, the total contribution paid by La Poste
parent company was €16.6 million.
Subsidiaries signing up to the Group savings plan are free
to determine their own top-up policy.
Le Groupe La Poste had more than 74,650 members in one
or both employee savings plans as at 31 December 2014,
i.e. a 3% increase between 2013 and 2014.
At the La Poste parent company level, the number of PEG
account holders was 59,214 and the number of PERCO
account holders was 24,019, for total outstandings of
€534 million as at 31 December 2014.
In terms of governance, the La Poste employee mutual
fund Supervisory Board comprises representatives of unitholders and management in equal numbers. The Board met
three times in 2014.
Employees
Change management
La Poste has a pro-active training policy for appointed and
alternate members of the Supervisory Board. Since 2012,
the members of the FCPE Supervisory Board have received
à la carte training, according to their level of expertise
and their arrival date. As a result, each year, a welcome
module is made for new arrivals in order to help them
familiarise themselves with ﬁnancial products and ﬁnancial
management techniques. Then a knowledge enhancement
17
module is planned to respond to speciﬁc needs and topics
requested by FCPE Supervisory Board members.
Each FCPE Supervisory Board is prepared in close
consultation with the former Chairman, the Chairman
in ofﬁce and the future Chairman, thereby guaranteeing
complete coverage of topics to be handled with the
Supervisory Board.
17.7.4 Employee proﬁt-sharing
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 Labour
Code (Employee profit-sharing) may be extended to all
La Poste staff (including state employees) under conditions
set out in a 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 Change management
In January 2013, La Poste began rolling out a change
management method shared by the entire company, under
the quality of life at work agreement.
By combining medico-social teams too, the method allows
the impact of projects on employees to be studied, so that
it can be taken into account, in collaboration with unions.
This unprecedented method states that all projects
pertaining to organisational changes must include a
certain number of obligatory stages and analysis and
must encourage quality social dialogue and listening to
employees to better understand their expectations and take
them into consideration.
In order to ensure in particular that these rules are
complied with, La Poste instituted a whistleblowing
system under the terms of the same agreement. As such,
the unions can inform the local Director, then the Group
HRD if necessary, of any failure that they believe they
see in the implementation of these social dialogue and
change management commitments, and compliance with
agreements signed.
This method has been implemented throughout the
course of 2014 to support employees in organisational
change projects led within La Poste. It has ensured that
the meaning and dialogue around projects is shared, that
continuous information from unions and employees on
their advancement is provided, that the Company listens to
individual employees about their work-related concerns, in
terms of working conditions as well as work/life balance.
Large information and training campaigns were also led in
2013 and 2014 for managers and local HR representatives,
all of whom are now trained, in order to encourage the use
of this method by management and ensuring its proper
implementation throughout the Company.
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Employees
Staff policy
17.9 Staff policy
17.9.1 Staff regulations
Having both state and private employees, La Poste tries
to apply common or 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.
11 January 1984 on legal provisions relating to the French
public sector.
According to Article 29 of the Act of 2 July 1990, 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
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.
According to Article 31 of the Act of 2 July 1990, contractual
employment is subject to collective agreements.
17.9.2 Social dialogue and staff representation
17.9.2.1 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 Labour 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.
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Collective staff representation: Technical
Committees and CHSCT
The collective representative authorities are the Technical
Committees (CT) and the Hygiene, Health and Safety at
Work Committees (CHSCT).
These authorities were established for the first time
following the professional elections on 18 October 2011.
The staff representatives within the CTs review substantial
subjects such as the organisation and functioning of
services, statutory regulations, training, skills development
and professional qualifications, professional equality,
gender equality and combating discrimination. 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 CHSCT is based
on the representative nature of the last CT elections.
Employees
Staff policy
T h e C H S C Ts w e re p u t i n p l a c e a t L a P o s t e i n
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 Labour Code, La Poste’s
Committees on hygiene, safety and working conditions are
tasked with:
f helping to protect the physical and mental health and
safety of C ompany workers, and of workers made
available to the Company by an outside company;
f helping to improve working conditions, primarily with a
view to encouraging women’s access to all jobs, and to
dealing with maternity-related issues;
f ensuring that all the legal obligations decided in these
areas have been complied with.
Professional elections
Professional elections were held from 1 to 4 December 2014,
exclusively via electronic vote for the ﬁrst time.
The participation rate for national CT representative
elections was 76%. As a reminder, during the previous
elections in 2011, the participation rate was also 76%. This
stable and high participation rate reﬂects the employees’
collective attachment to a proper functioning social
democracy.
During the elections, the employees 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 modernisation of social dialogue in Public Service and
the decrees of 7 September 2011 on La Poste’s CT and CAP.
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 new terms of ofﬁce began on 1 February 2015, for a
four-year period.
17
17.9.2.2 Negotiations and agreements
The national agreements signed in 2014
Eight agreements and amendments were signed by
La Poste and union representatives in 2014, including one
unanimous agreement on La Poste’s social housing policy
in April:
f amendment to revise the agreement on banking advisor
jobs at La Poste (CGT, FO, CFDT, CFTC, CGC/UNSA) on
14 January 2014;
f collective agreement pertaining to La Poste’s
generational contract (FO, CFDT, CFTC, CGC/UNSA) on
22 January 2014;
f agreement relating to staff working in Mayotte (SUD, FO,
CFDT, CFTC, CGC/UNSA) on 21 February 2014;
f unanimous agreement on the social housing policy at
La Poste (CGT, SUD, FO, CFDT, CFTC, CGC/UNSA) on
7 April 2014;
f supplement No. 8 to the agreement dated 19 May 2006
instituting two obligatory collective guarantee schemes
for private employees of La Poste governed by the
shared agreement (SUD, FO, CFDT, CFTC, CGC/UNSA)
on 22 July 2014;
f supplement to accrued leave agreement dated 7 July
2000 (FO, CFDT, CFTC, CGC/UNSA) on 22 July 2014;
f amendment to the PERCO agreement of 8 December
2006 (FO, CFDT, CFTC, CGC/UNSA) on 22 July 2014;
f social agreement on banking advisor jobs (CGT, CFDT,
FO, CFTC, “Acting Together” composed of the CGC and
the UNSA). This agreement falls under the renewal of
the agreement signed in 2011.
Three majority agreements signed in 2015 to make
employees key participants and beneﬁciaries
of La Poste’s transformation.
La Poste and union organisations began negotiations in
May 2014 as part of the “La Poste 2020: Conquering the
Future” strategic plan. These negotiations resulted in three
national majority agreements being signed on 5 February
2015:
f a social agreement called “A future for every employee”
(CFDT, FO, CFTC-CGC-UNSA);
f a social agreement on the institution of the “salary
supplement” at La Poste (CGT, CFDT, CFTC-CGC-UNSA);
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17
Employees
Staff policy
f a unanimous social agreement on changing the salary
f continuing to intensify efforts to prevent and improve
grid for La Poste’s state employees (CGT, CFDT, SUD,
FO, CFTC-CGC-UNSA).
working conditions. In terms of preventing physical
duress, La Poste is expanding its list of positions known
to have physically demanding elements and is granting
three to ﬁve additional rest days each year starting at
55 years old for employees exposed to these physically
demanding tasks;
These three agreements, which are the product of a social
dialogue with all representative union organisations,
resulted in significant innovations in La Poste’s social
policies and encouraged a new dynamic of professional
development.
The majority signing of these three agreements, which was
unprecedented for La Poste, illustrates everyone’s desire
to support the Company’s transformation to benefit all
employees and represents a major step towards La Poste’s
social transformation.
Key measures in the “A future for every employee”
agreement
The agreement provides for:
f implementing workforce management planning (GPEC)
with, in particular, the creation of a job observatory
comprising union representatives and representatives of
La Poste. The GPEC will notably respond to employees’
questions on future jobs and the skills necessary to
perform them;
f boosting, facilitating and supporting professional
development. It prioritises internal mobility, the
development of new career paths within the business
unit s as well as between business unit s, and offers
guarantees for professional development to or from
Group subsidiaries (maintaining seniority, guaranteed
annual net minimum ﬁxed compensation, etc.) as well
as better support of geographic and functional mobility;
f making an unprecedented training effort. Training
development and access to training for everyone is a key
commitment made in the agreement. As a result, 80% of
employees will be trained each year, 100% of employees
trained in two years with an average of 100 training
hours for every employee over ﬁve years. On top of that,
qualiﬁcation-earning careers supporting development
within an employee’s own job or towards a new job
(10,000 careers per year, or 50,000 careers throughout
the duration of the agreement) and the creation of a
qualiﬁcation bonus;
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f strengthening support for developing managers,
integrating new managers and the possibility for senior
managers holding operational management positions to
have an extra day off. Additionally, La Poste has started
a programme to develop HR activities and skills. An HR
School will be created as part of this effort.
An agreement on creating a more simple and
understandable salary supplement
The “salary supplement” allowance, which is identical for
everyone at the same job level, and an “individual former
career allowance” which covers potential individual factors
from a person’s past career which could impact their salary,
have been put in place.
These two new allowances are replacing the “additional
compensation ” and guarantee that each employee will
receive an amount that is at least equivalent to his or
her current “additional compensation ”. In June 2015,
140,000 employees will receive a special bonus for 2014
with their pay that will be equal to the difference between
the “salary supplement ” and their current “additional
compensation”.
The “additional compensation” was created 20 years ago
by combining all of the public sector bonuses that state
employees of La Poste received individually, and was then
extended to private employees.
The replacement of the “additional compensation” will be
implemented starting from 1 July 2015.
An agreement on changing the salary grid
for La Poste state employees
An agreement on changing the salary grid for La Poste
state employees provides for the implementation of new
levels to improve the salary grid for La Poste state employee
categories I to III, extending the measures taken by the
public sector for category B and C state employees. These
changes will take effect as soon as the decrees made by the
Council of State are published.
Employees
Staff policy
17.9.2.3 Employee relations bodies
An agreement, signed on 21 June 2004 by La Poste and
unions, defines the principles and methodology of the
social dialogue, as well as dialogue and social negotiation
not deﬁned by the public function legislation; La Poste’s
Strategy Exchange Committee (CESP) and La Poste's
Social Dialogue (CDSP). These bodies were consolidated in
17
the law 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 La Poste’s Strategy
Exchange Committee (CESP). This body complements the
existing forums for information and consultation at the
national level, including the CESP and the CDSP.
17.9.3 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 general ordinary pension plan for
private-sector employees. La Poste does not have any
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 the
company 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 equalise the levels of wagerelated 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.
17.9.4 Supplementary health insurance
A supplementary personal risk scheme that takes care of
health care costs has been in effect since 2007 for private
staff. It appears as an important factor improving the living
standards of workers, involving a system of contributions
for the entire plan that offers solidarity to families and the
lowest earners. The follow-up of this plan with trade union
organisations 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 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 concluded on 7 July 2011. It
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
since 1 October 2013.
17.9.5 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.
Since 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.
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17
Employees
Employee shareholding
The 2014 budget amounted to more than €213 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 (85,100 beneficiaries), accounted for
46% of the total budget. Cafeteria provision is a means of
promoting the National Healthy Food Plan. Furthermore, in
2014, the COGAS approved a new policy in order to improve
catering offerings. In particular, it adapts cafeterias to
changes in employees’ work schedules as well as to new
employee behaviours in this area.
The second largest budget item was allocated to cultural
and sporting activities, and amounted to 21% of the total
budget. It covers two aspects:
f direct ﬁnancial support to encourage practice of a sport
and access to cultural or leisure events;
f subsidies to associations working in these areas so that
their rates are affordable for all employees.
Support for children and youths was the third largest item
in the budget, and amounted to 20% in 2014. It involves
childcare assistance delivered by childcare providers,
nurseries or outdoor centres, as well as ﬁnancial support
for stays at holiday camps.
Mutual aid and social solidarity programmes make up the
fourth item, and accounted for 7% of the budget. These
programmes 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 C ompany policy, including holiday vouchers
(45,473 savings plan recipients), study grants, and pre-paid
service cheques (CESU).
BREAKDOWN OF SPENDING ON SOCIAL ACTIVITIES
2014
(€ million)
Catering and economic sector
%
2013
97.8
46
93.9
34.5
46
29.9
44.8
21
43.1
Children
41.7
20
46.3
Personal risk and solidarity
15.6
7
15.9
13.2
6
Of which paid directly to employees
Sporting and cultural activities
Management and structural costs
13.4
TOTAL
213.1
212.6
Average amount per employee (in euros)
1,015
1,011
17.10 Employee shareholding
The second line of Paragraph III of Article 32 of the Act
of 2 July 1990 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,
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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 only hold a
non-controlling stake in La Poste’s share capital.
Employees
Summary of employee information
17
17.11 Summary of employee information
17.11.1 Distribution of Group employees by business unit
AVERAGE NUMBER OF EMPLOYEES (FULL-TIME EMPLOYEE EQUIVALENTS/ANNUM)
10%
GeoPost
2%
Group
8%
La Banque
Postale
57%
Services
Mail
Parcels
21%
La Poste
Network
2%
Digital Services
17.11.2 Distribution of Group employees by business unit
and by geography
AVERAGE NUMBER OF EMPLOYEES (FULL-TIME EMPLOYEE EQUIVALENTS/ANNUM)
5,069
Group
146 064
147,250
Services-Mail-Parcels
1,186
55,162
La Poste Network
19,972
La Banque Postale
16,614
GeoPost
5,391 25,121
3,116
Digital Services
5,317
France
350 85 4,882
Europe (excl. France)
Rest of the world
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17
Employees
Summary of employee information
17.11.3 Distribution of Group employees in France
TOTAL INDIVIDUAL STAFF MEMBERS AS AT 31 DECEMBER
2014
2013
231,347
238,699
3,942
3,619
Soﬁpost
18,395
19,897
GeoPost
5,531
5,531
644
638
40
38
259,899
268,422
La Poste parent company
La Banque Postale
Poste Immo
Other
TOTAL
17.11.4 Age pyramid of Group employees in France
NUMBER OF INDIVIDUAL EMPLOYEES AS AT 31 DECEMBER – STATE EMPLOYEES AND PRIVATE
EMPLOYEES UNDER PERMANENT CONTRACT
67,878
49,937
47,646
46,870
13,231
13,491
4,370
under
24 years old
266
24 -29
years
Registration document 2014
30 -39
years
LE GROUPE LA POSTE
40 -49
years
50-54
years
55-59
years
60 years old
and older
17
Employees
Summary of employee information
17.11.5 Summary of Group employee information in France
2014
2013
Total staff as at 31 December (individuals)
259,899
268,422
Number of state employees and permanent contract employees
Staff
243,423
250,350
Number of temporary contract employees
16,476
18,072
% men
49.4%
49.7%
% women
50.6%
50.3%
236,540
243,156
% executives
23.1%
22.2%
% employees
76.9%
77.8%
Number
32,002
34,396
% of total staff
13.1%
13.7%
Average number of employees (full-time employee equivalents per annum)
Part-time workers as permanent employees
Recruitments
Number of recruits under permanent contracts
7,905
8,936
% men
56.8%
NA*
% women
43.2%
NA*
3,102
NA*
71
NA*
Number of employees trained at least once
165,926
173,199
Number of training days
695,480
NA*
Number of recruits aged under 25
Professional relations
Number of national agreements signed
Training
* New indicator for 2014: historic data not available.
2013 employee numbers were restated to take into account the change in the scope of consolidation following the initial application of IFRS 10 and 11
(see Chapter 20, Note 3). Impact on the Group’s scope in France for 2013 was 86 full-time employee equivalents per annum.
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17
Employees
Summary of employee information
17.11.6 Summary of employee information for La Poste parent
company
2014
2013
231,347
238,699
Number of state employees
109,013
115,491
Number of employees under permanent contracts
107,014
106,296
Number of employees under temporary contracts
15,320
16,912
48.2%
48.5%
Staff
Total staff as at 31 December (individuals)
% men
% women
51.8%
51.5%
212,077
218,941
Number
22,526
23,715
% of total staff
10.4%
10.7%
2,735,267
2,506,114
3,157
2,932
Average number of employees (full-time employee equivalents per annum)
Part-time workers as permanent employees
Number of paid overtime hours
Outside workers
Agency staff (full-time employee equivalents per annum)
Recruitments
Number of recruits under permanent contracts
4,525
5,298
% men
52.5%
50.9%
% women
47.5%
49.1%
1,795
1,814
2,409
2,384
84.2
73.6
6.37%
6.14%
8
7
Frequency of accidents at work with time off
23.4
25.2
Severity of accidents at work with time off
1.25
1.27
3.5%
3.6%
Number of employees trained at least once
156,936
163,822
Number of training days
666,231
731,543
213.12
212.58
Number of recruits aged under 25
Compensation
Average gross monthly compensation (€)
Collective incentives for 2013 (€ million)
Absenteeism
Rate of absence for sickness
Professional relations
Number of national agreements signed
Health and safety conditions
(a)
Training
Training expenditure as a percentage of payroll
Social activities
Spending on social activities (€ million)
(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.
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Principal shareholders
18
18.1 Shareholders
270
18.2 Control of La Poste
270
18.3 Known agreement that could lead to a change of control
270
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269
18
Principal shareholders
Shareholders
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.
2014
Shareholder
No. of shares
% share
capital
2013
% voting
rights
No. of shares
% share
capital
2012
% voting
rights
No. of shares
% share
capital
% voting
rights
French
government
700,000,000
73.7%
73.7%
700,000,000
73.7%
73.7%
655,555,556
77.1%
77.1%
CDC
250,000,000
26.3%
26.3%
250,000,000
26.3%
26.3%
194,444,444
22.9%
22.9%
TOTAL
950,000,000
100%
100%
950,000,000
100%
100%
850,000,000
100%
100%
Shareholdings presented as at 31 December 2014 relate
to the position after the €2.7 billion capital increase was
ﬁnalised, 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
Not applicable.
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Related-party transactions
19
19.1 Relations with the French government and public sector companies
272
19.2 Relations with consolidated companies
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271
19
Related-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.
19.1 Relations with the French government and public
sector companies
19.1.1 Relations with the French government
Since the Act of 10 February 2010 reafﬁrming the provisions
of the Act of July 1990 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 Digital
Technology, and subject to economic and ﬁnancial control
by the French government, and the control procedures of
France’s Court of Auditors and the French Parliament.
The French government holds 73.68% of the share capital
of La Poste.
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 includes:
f 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;
f progress in strengthening quality of service;
f m i ss i o n s a d a p t e d t o u s e rs’ ex p e c t a t i o n s a n d
technological advances;
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Registration document 2014
f 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.
The French Postal Regulation Act of 20 May 2005 provided
ARCEP with the power to regulate pricing for the Universal
Postal Service on a multiyear basis, after reviewing
La Poste’s proposals.
In addition, this Postal Regulation Act confirmed and
clarified La Poste’s regional planning responsibilities.
To this end, on 16 January 2014, the French government,
La Poste, and the French Mayors’ Association (Association
des Maires de France) signed a new local postal coverage
agreement (see Chapter 5, Section 5.7.2.2.2), for a period
of three years (2014-2016).
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 LEP 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 below).
LE GROUPE LA POSTE
Related-party transactions
Relations with the French government and public sector companies
19
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. 5182 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,
Section 21.1.7).
In its decision of 22 February 2011, the French Competition
Authority authorised 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.
A s a t 3 1 D e ce m b e r 2 0 1 4 , C a i ss e d e s D é p ô t s e t
Consignations holds 26.32% of the share capital of La Poste.
It has three representatives on the Board of Directors, it
has representation in each of the Board Committees of the
Board of Directors and it 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 5.3.2.2.1).
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; the
eligible loans are then refinanced by CAFFIL (Caisse
Française de Financement Local), a company of 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 authorised La Banque
Postale to acquire a portion of the share capital of SOFIAP
(Société Financière pour L’Accession à la Propriété), which
was previously owned by Crédit Immobilier de France and
SNCF. This acquisition took place in May 2014; Soﬁap is now
66%-held by La Banque Postale and 34% by SNCF. Soﬁap is
a credit institution that primarily aims to offer home loans
to employees of SNCF, the French railways operator (see
Chapter 5, Section 5.3.2.2.2).
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273
19
Related-party transactions
Relations with consolidated companies
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 both its front office (La Poste Network post offices)
and back-ofﬁce operations (ﬁnancial centres). 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. La Banque Postale, which currently
holds 20.15% of CNP Assurances, signed a commercial
partnership agreement with CNP (see Note 35 to the
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consolidated ﬁnancial statements). It plays 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.
Financial information
regarding the assets and
liabilities, financial position
and results of the issuer
20
20.1 Consolidated ﬁnancial statements
276
20.2 Separate ﬁnancial statements
422
20.3 Dividend payment policy
468
20.4 Legal and arbitration proceedings
468
20.5 Material change in the Company’s ﬁnancial or commercial position
468
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275
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20.1 Consolidated ﬁnancial statements
20.1.1 Consolidated ﬁnancial statements for the year
ended 31 December 2014
Consolidated income statement
Note
2014
2013 (a)
Revenues from commercial activities
6
16,503
16,158
Net Banking Income
7
5,660
5,557
22,163
21,715
(€ million)
Operating revenue
Purchases and other expenses
8
(7,448)
(7,091)
Personnel expenses
9
(12,556)
(12,447)
Taxes and levies
10
(235)
(236)
Depreciation, amortisation, provisions and impairment
11
(1,363)
(1,293)
Other operating revenue and expenses
12
158
132
(18)
(13)
(21,462)
(20,949)
701
766
Proceeds from asset disposals
Net operating expenses
Operating proﬁt/(loss) before share in results of joint ventures
Share in results of joint ventures
18
Operating proﬁt/(loss) after share in results of joint ventures
Cost of net ﬁnancial debt
Other ﬁnancial items
Financial proﬁt/(loss)
13
Proﬁt before tax of consolidated companies
Income tax
14
12
778
(157)
(197)
(41)
(25)
(198)
(222)
521
556
(182)
(125)
Share in proﬁts of associates
200
215
CONSOLIDATED NET PROFIT/(LOSS)
539
646
Net proﬁt/(loss), Group share
513
624
27
23
Attributable to non-controlling interests
(a) Amounts restated to account for the ﬁrst-time application of IFRS 10 and IFRS 11 (see Note 3).
276
18
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
Consolidated comprehensive income statement
Amounts after tax
(€ million)
Consolidated net proﬁt/(loss)
2014
2013 (a)
539
646
79
32
Other comprehensive income recognised under equity
Recyclable items
Change in unrealised gains and losses on ﬁnancial instruments
Of which transferred to net proﬁt/(loss) for the year
(61)
Translation adjustments
29
(27)
216
(26)
217
26
Of which transferred to net proﬁt/(loss) for the year
Share in other comprehensive income of equity companies
Of which:
f
change in unrealised gains and losses on ﬁnancial instruments – CNP
f
other unrealised gains and losses on ﬁnancial instruments
f
cumulative translation adjustments
(4)
(1)
(48)
(118)
28
Non-recyclable items
Actuarial adjustments on employee beneﬁts
Total other comprehensive income recognised in equity (after tax)
206
7
Total comprehensive income/(loss)
745
653
TOTAL COMPREHENSIVE INCOME/(LOSS), GROUP SHARE
698
630
47
22
Total comprehensive income/(loss) attributable to non-controlling interests
(a) Amounts restated to account for the ﬁrst-time application of IFRS 10 and IFRS 11 (see Note 3).
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20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Consolidated balance sheet
ASSETS
Note
31/12/2014
31/12/2013 (a)
Goodwill
15
1,805
1,626
Intangible assets
16
850
807
Tangible assets
17
5,880
5,931
Investments in joint ventures and associates
18
3,075
2,741
Other non-current ﬁnancial assets
19
831
938
Deferred tax assets
14
264
149
12,706
12,192
(€ million)
Non-current assets
Current banking assets
Customer receivables and loans
20.1
67,857
59,204
Receivables from credit institutions
20.2
83,315
82,894
Securities portfolio
20.3
52,541
50,566
Other current ﬁnancial assets
20.4
1,521
1,435
Accruals
20.5
998
1,220
Cash and central bank deposits (b)
23.2
1,950
2,182
Other current assets
Inventories and work-in-progress
21
119
132
Trade and other receivables
22
3,303
2,810
Other current ﬁnancial assets
19
383
433
Income tax credit
Other accruals – Assets
Cash and cash equivalents
23
Assets held for sale
24
194
253
60
117
1,389
2,104
29
120
Current assets
213,658
203,468
TOTAL ASSETS
226,364
215,661
(a) Amounts restated to account for the ﬁrst-time application of IFRS 10 and IFRS 11 (see Note 3).
(b) Cash held at post ofﬁces as at 31 December 2013 (i.e. €612 million) has been reclassiﬁed to current banking assets, on the line “Cash and central
bank deposits”, as a result of its transfer from the La Poste Network segment to the La Banque Postale segment which occurred in 2014
(see Note 23.2).
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
LIABILITIES
Note
(€ million)
31/12/2014
31/12/2013 (a)
3,800
3,800
900
900
3,276
2,879
Share capital
Issue premium
Reserves
Unrealised gains and losses on ﬁnancial instruments
Actuarial adjustments on employee beneﬁts
Cumulative translation adjustments
Net proﬁt/(loss), Group share
Equity, Group share
Non-controlling interests
Consolidated equity
888
613
(198)
(80)
(92)
(120)
513
624
9,088
8,615
270
235
9,358
8,850
Medium- and long-term bonds and other ﬁnancial debt
27
6,120
6,048
Employee beneﬁts – non-current liabilities
29
1,912
1,685
Non-current provisions for contingencies and losses
26
172
114
Deferred tax liabilities
14
309
238
8,513
8,086
2,228
1,802
Non-current liabilities
Current provisions for contingencies and losses
Speciﬁc provisions for the Insurance and Banking activities
26
Current provisions for contingencies and losses
26
585
538
Short-term bonds and other ﬁnancial debt
27
885
1,023
Current banking liabilities
Liabilities to credit institutions
30.1
15,157
14,757
Liabilities to customers
30.2
167,251
166,583
Debt evidenced by a certiﬁcate and other ﬁnancial liabilities
30.3
15,143
6,801
Accruals
20.5
1,995
2,022
31
4,321
4,357
38
34
29
683
663
208
146
Current liabilities
208,494
198,725
TOTAL LIABILITIES
226,364
215,661
Other current liabilities
Trade and other payables
Government – Income tax
Employee beneﬁts – current liabilities
Other accruals – Liabilities
(a) Amounts restated to account for the ﬁrst-time application of IFRS 10 and IFRS 11 (see Note 3).
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Changes in consolidated equity 2014
(€ million)
Unrealised Other unrealised
Actuarial
Cumulative gains and losses gains and losses adjustments
Share
Issue Unallocated translation
on ﬁnancial
on ﬁnancial on employee
Other
capital premium proﬁt/(loss) adjustments instruments – CNP
instruments
beneﬁts reserves
Total,
NonGroup controlling
share interests
Consolidated equity
as at 31/12/2013 (restated) (a)
3,800
8,615
235
8,850
(171)
(15)
(186)
(56)
(56)
(32)
(89)
2
2
(6)
(5)
698
47
746
513
27
539
Amounts after tax
900
Dividend payments
624
(120)
418
195
(80)
2,879
(171)
Call options on non-controlling
interests
Purchase of non-controlling
interests
Appropriation of 2013 earnings
(453)
Comprehensive income
for the year
513
Total
453
28
217
58
(118)
Of which:
f
Net proﬁt
f
Other comprehensive income
513
28
217
58
(118)
186
21
206
(0)
(0)
43
42
3,276
9,088
270
9,358
(€ million)
Unrealised Other unrealised
Actuarial
Cumulative gains and losses gains and losses adjustments
Share
Issue Unallocated translation
on ﬁnancial
on ﬁnancial on employee
Other
capital premium proﬁt/(loss) adjustments instruments – CNP
instruments
beneﬁts reserves
Total,
NonGroup controlling
share interests
Total
Consolidated equity
as at 31/12/2012 (restated) (a)
3,400
700
7,521
243
7,764
400
200
600
0
600
(171)
(20)
(191)
67
67
(1)
66
(43)
(43)
(6)
(49)
630
22
653
624
23
646
7
(0)
6
Other
CONSOLIDATED EQUITY AS AT
31/12/2014
3,800
900
513
(92)
635
253
(198)
(a) Amounts restated to account for the ﬁrst-time application of IFRS 10 and IFRS 11 (see Note 3).
Changes in consolidated equity 2013
Amounts after tax
La Poste capital increase (b)
Dividend payments
479
(45)
392
167
(110)
2,538
(171)
Call options on non-controlling
interests
Purchase of non-controlling
interests
Appropriation of 2012 earnings
(308)
Comprehensive income
for the year
624
308
(75)
26
28
28
Of which:
f
Net proﬁt
f
Other comprehensive income
624
(75)
26
28
Other
CONSOLIDATED EQUITY AS AT
31/12/2013 (RESTATED) (a)
3,800
900
624
(120)
418
195
28
2
9
11
(4)
7
(80)
2,879
8,615
235
8,850
(a) Amounts restated to account for the ﬁrst-time application of IFRS 10 and IFRS 11 (see Note 3).
(b) The French government and Caisse des Dépôts exercised in April 2013 the 350 million equity warrants they were holding (decision of the
Extraordinary General Meeting on 6 April 2011).
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
Consolidated cash ﬂow statement
2013 (a)
2014
Group
Nonbanking
La Banque
Postale
Group
Nonbanking
La Banque
Postale
EBITDA
2,554
944
1,610
2,194
790
1,404
Change in provisions for current assets
and unrecoverable receivables
(261)
(38)
(223)
(178)
(26)
(153)
0
0
0
5
5
0
(€ million)
Note
Miscellaneous ﬁnancial income and expenses
Cash ﬂows from operating activities
before cost of net debt and taxes
38.1
2,292
906
1,387
2,021
770
1,251
Change in working capital requirement
38.3
(12)
(152)
140
10
26
(15)
Change in cash held at post ofﬁces
23.2
CICE tax credit for the period (excluding provisions)
Change in balance of banking sources and uses
38.4
Taxes paid
Dividends paid by La Banque Postale to La Poste
Dividends received from equity associates
Cash ﬂows from operating activities
Purchase of intangible and tangible assets
38.5
Purchase of ﬁnancial assets
(21)
(21)
108
108
(349)
(346)
(2)
(255)
(253)
(2,371)
(0)
(2,371)
(2,226)
(99)
305
(404)
(146)
(0)
325
(325)
122
15
106
101
(246)
258
(258)
9
9
(0)
(438)
1,030
(1,469)
(478)
1,018
(1,496)
(1,052)
(844)
(208)
(989)
(829)
(160)
(17)
(16)
(1)
(22)
Issue of subordinated notes by La Banque Postale
Proceeds from the disposal of tangible and intangible assets
120
Proceeds from disposals of ﬁnancial assets
(2)
(2,226)
120
0
132
(21)
(1)
(800)
800
125
7
16
16
0
28
26
1
(194)
(156)
(38)
(163)
(50)
(113)
86
86
157
157
(1,040)
(794)
(246)
(857)
(1,391)
534
8
0
8
601
600
0
Dividends paid
(186)
(174)
(12)
(17)
Interest paid
(150)
(150)
Impact of changes in consolidation scope
Change in ﬁnancial assets held for investment purposes
Cash ﬂows from investing activities
Capital increase (b)
(175)
(171)
405
405
(752)
Proceeds from new borrowings
38.6
1,541
791
Repayment of borrowings
38.7
(830)
(830)
(752)
(3)
(3)
(53)
(9)
(9)
(9)
(103)
(103)
(581)
581
557
(557)
372
(955)
1,327
(265)
353
(618)
388
1,580
Purchase of non-controlling interests
Other cash ﬂows from ﬁnancing activities
38.8
Intra-group ﬂows
Cash ﬂows from ﬁnancing activities
Decrease (increase) in cash and cash equivalents from banking
activities before impact of changes in consolidation scope and
transfer of cash held at post ofﬁces
Impact of changes in exchange rates
38.9
388
4
750
(191)
(171)
4
(4)
1,580
(4)
Change in cash and cash equivalents (c)
(715)
(715)
(23)
(23)
Opening cash and cash equivalents (c)
2,104
2,104
2,127
2,127
Closing cash and cash equivalents (c)
1,389
1,389
2,104
2,104
(0)
(45)
(0)
(a) Amounts restated to account for the ﬁrst-time application of IFRS 10 and IFRS 11 (see Note 3).
(b) Of which €600 million received in 2013 in relation to La Poste’s capital increase decided in April 2011.
(c) Excluding cash held at post ofﬁces.
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Notes to the consolidated ﬁnancial statements
General items
284
Note 1
Signiﬁcant events during the ﬁnancial year
284
Note 2
Accounting Rules and Policies
285
Note 3
First-time application of new accounting standards
301
Note 4
Changes in the consolidation scope
310
Note 5
Segment reporting
311
Notes to the income statement
Note 6
Revenues
318
Note 7
Net Banking Income
319
Note 8
Purchases and other external expenses
319
Note 9
Personnel expenses and headcount
320
Note 10 Taxes and levies
321
Note 11 Depreciation, amortisation, provisions and impairment
321
Note 12 Other operating revenue and expenses
322
Note 13 Financial proﬁt/(loss)
322
Note 14 Income tax
323
Notes to the balance sheet
282
318
327
Note 15 Goodwill
327
Note 16 Intangible assets
330
Note 17 Tangible assets
331
Note 18 Equity associates
332
Note 19 Other ﬁnancial assets
333
Note 20 Banking activities ﬁnancial assets
335
Note 21 Inventories and work-in-progress
338
Note 22 Trade and other receivables
338
Note 23 Cash and cash equivalents
339
Note 24 Assets and liabilities held for sale
340
Note 25 Share capital
340
Note 26 Provisions for contingencies and losses
341
Note 27 Bonds and other ﬁnancial debt
343
Note 28 Net debt
348
Note 29 Employee beneﬁts
349
Note 30 Banking activities ﬁnancial liabilities
354
Note 31 Trade and other payables
356
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Additional information
20
357
Note 32 Information on risks excluding Banking activities
357
Note 33 Information on risks relating to banking activities
359
Note 34 Additional information on ﬁnancial instruments
383
Note 35 Related-party transactions
396
Note 36 Off-balance sheet commitments and contingent liabilities
397
Note 37 Banking activities balance sheet
403
Note 38 Notes to the consolidated cash ﬂow statement
405
Note 39 Fees paid to the Statutory Auditors
409
Note 40 Post-balance sheet events
410
Note 41 Scope of consolidation
410
Note 42 Other unconsolidated equity investments – excluding France
419
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
General items
Comparative data for 2013 in the notes to the ﬁnancial statement have been restated to account for the ﬁrst-time application
of IFRS 10 and IFRS 11. The details of the restatements are shown in Note 3.
NOTE 1 Signiﬁcant events during the ﬁnancial year
1.1
New governance of Le Groupe La Poste
1.2
La Banque Postale bond issue
1.3
Investigation by the French Competition Authority on the parcel delivery industry
1.1 New governance of Le Groupe La Poste
1.2 La Banque Postale bond issue
Le Groupe La Poste presented in April 2014 its new strategic
plan “La Poste 2020: Conquering the future”. As part of this
plan, a new corporate governance will be implemented,
organised around ﬁve business units:
On 11 April 2014, La Banque Postale carried out a
€750 million bond issue. This was the third issue of
Tier 2 securities by La Banque Postale, the first having
been carried out in November 2006 for €500 million and
redeemed in 2011, and the second having been carried out
in November 2010 for €750 million.
f Mail-Parcels-Services;
f La Banque Postale;
f GeoPost;
f La Poste Network;
f Digital Services.
As a result of this new organisation, the segment reporting
reviewed by Group Management was modiﬁed, as detailed
in Note 5.
This issue, done in the form of redeemable subordinated
securities (Lower Tier 2), was primarily taken up by
European institutional investors. This issue can be
converted into senior debt in the event of regulatory hurdles.
It is also hedged at fair value.
1.3 Investigation by the French Competition
Authority on the parcel delivery industry
The French Competition Authority is currently investigating
the various parcel delivery players in France. A grievance
notice was issued on 30 June 2014.
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
NOTE 2 Accounting Rules and Policies
2.1
Accounting guidelines
2.2
Valuation basis and use of estimates
2.3
Consolidation methods
2.4
Translation of ﬁnancial statements of foreign companies
2.5
Foreign currency transactions
2.6
Consolidation of the La Banque Postale segment
2.7
Business combinations
2.8
Operating revenue
2.9
Taxes
2.10 Intangible assets
2.11 Tangible assets
2.12 Impairment of goodwill, intangible assets and tangible assets
2.13 Other ﬁnancial assets
2.14 Banking activities assets and liabilities
2.15 Bond debt and ﬁnancial derivatives relating to the management of the bond debt
2.16 Commitments to buy out non-controlling interests
2.17 Inventories and work-in-progress
2.18 Trade receivables
2.19 Provisions
2.20 Employee beneﬁts
2.21 Assets held for sale
2.22 Cash ﬂow statement
La Poste, the parent company of Le Groupe La Poste
(“Le Groupe La Poste” or “the Group”) has been a société
anonyme (public limited company) since 1 March 2010, and
has its registered 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 2014 were signed
off by the Board of Directors (at its meeting on 24 February
2015), 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 2014
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 (www.ec.europa.eu/internal_market/
accounting/ias/index_fr.htm).
The accounting principles applied as at 31 December 2014
are unchanged from those applied as at 31 December 2013,
except for the items described in Point 2.1.1 below.
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
2.1.1 Standards and application interpretations
that are mandatory for the ﬁrst time in 2014
IFRS 10 – Consolidated ﬁnancial statements
IFRS 10 supersedes IAS 27 and SIC 12. It deﬁnes a single
model for control, based on the ability of the investor to
affect the returns from an entity through its power over this
entity. The effects on the Group’s consolidated accounts of
the ﬁrst-time application of this standard are presented in
Note 3.
IFRS 11 – Joint arrangements
IFRS 11 supersedes IAS 31, and makes the equity method
mandatory for joint arrangements classified as joint
ventures. The effects on the Group’s consolidated accounts
of the ﬁrst-time application of this standard are presented
in Note 3.
2.1.2 Standards and application interpretations
that will be mandatory after 31 December 2014
and that were not applied in advance
Le Groupe La Poste did not apply in advance the IFRIC
21 – Levies interpretation, whose application date is after
31 December 2014. The expected impact on the Group
annual consolidated accounts of the application of this
interpretation is not signiﬁcant.
The potential impacts of IFRS 15 - Revenue from Contracts
with Customers on the Group’s consolidates accounts are
under review.
Moreover, the potential impacts of IFRS 9 – Financial
instruments, will be analysed after its adoption by the
European Union.
IFRS 12 – Disclosure of interests in other entities
2.1.3 Reminder of the exemptions
to the retrospective application of IFRS retained
on ﬁrst application of IFRS
This text requires disclosures about an entity’s interests
in subsidiaries, joint arrangements, associates and
unconsolidated ‘structured entities. The related additional
information is provided in Note 3.2.
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:
IAS 27 revised – Separate ﬁnancial statements
f business combinations prior to 1 January 2006 were not
restated;
This text deals only with separate ﬁnancial statements and,
as such, is not applicable to Le Groupe La Poste.
f the cumulative amount of translation adjustments as
IAS 28 revised – Investments in associates and joint
ventures
f the cumulative amount of actuarial gains and losses on
This text deﬁnes the concept of signiﬁcant inﬂuence and the
equity consolidation method. It did not have any impact on
the Group’s ﬁnancial statements as at 31 December 2014.
f the Group chose the option that allows tangible assets
at 1 January 2006 was reclassiﬁed under consolidated
reserves, while the equity amount remained unchanged;
employee commitments was recognised through equity
as from 1 January 2006;
to be measured at fair value as at the transition date for
all of its real estate assets.
Amendments to IAS 36 – Recoverable amount
disclosures for non-ﬁnancial assets
This text did not have any impact on the Group’s ﬁnancial
statements as at 31 December 2014.
Amendments to IAS 32 – Offsetting ﬁnancial assets
and ﬁnancial liabilities
This text did not have any impact on the Group’s ﬁnancial
statements as at 31 December 2014.
Amendments to IAS 39 – Novation of derivatives
and continuation of hedge accounting
This text did not have any impact on the Group’s ﬁnancial
statements as at 31 December 2014.
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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.
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
The items primarily concerned are:
f the calculation of employee beneﬁts;
f the estimates for provisions for contingencies and
losses, especially the Home Loan Savings provision;
f the assumptions selected for impairment tests on
goodwill and on intangible and tangible assets;
f the measurement of ﬁnancial instruments not listed on
organised markets;
f the credit risk assessments performed by La Banque
Postale;
f the assumptions and estimates used to measure the
effectiveness of hedges.
2.3 Consolidation methods
2.3.1
Full consolidation
Subsidiaries that are controlled by the Group are fully
consolidated.
Control is deﬁned as the power over the relevant activities of
the investee, exposure to variable returns from the investee
and the ability to user its power to affect these returns.
2.3.2
Equity method
Associates and joint ventures are accounted for under the
equity method.
Joint ventures are those joint arrangements whereby the
parties that have joint control of the arrangement have
rights to the net assets of the arrangement.
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.
Associates are entities over which the Group has signiﬁcant
inﬂuence.
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.
Shares accounted for under the equity method are recorded
in the balance sheet under “Investments in joint ventures
and associates” at their historical cost adjusted for the
share of net assets earned subsequent to the acquisition,
less impairment.
20
Their proﬁts or losses are presented in the consolidated
income statement under “Share in proﬁts of joint ventures
and associates”.
2.3.3
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.
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.
2.3.4
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.
2.3.5
Intra-group transactions
All material transactions between consolidated companies,
and proceeds on internal disposals, are eliminated.
2.3.6 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.
2.4 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.
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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.
2.5 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).
2.6 Consolidation of the La Banque Postale
segment
In order to improve the clarity of financial statements,
specific La Banque Postale 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
Notes 2.8 – Operating revenue and 2.14 – Banking activities
assets and liabilities.
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2.7 Business combinations
Business combinations are recognised according to the
acquisition method, in line with the provisions of IFRS 3 –
Business Combinations.
When an exclusively controlled company is first
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 2.12.
2.8 Operating revenue
2.8.1
Revenues from commercial activities
Revenues from the sale of goods or services are 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 (except in exceptional circumstances).
As a result, the time taken to deliver mail and parcels is
taken into consideration when assessing revenues at the
balance-sheet date.
2.8.2
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.
2.9 Taxes
The La Poste parent company has opted for a tax
consolidation regime where it is the umbrella company.
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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.
2.10 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.
Research and development costs
Research costs are expensed in the year in which they are
incurred.
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f the Group has shown its intention to complete the
intangible asset and to use or sell it;
f the Group has shown that the asset will generate likely
future economic beneﬁts;
f 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;
f 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.
2.11 Tangible assets
Tangible assets consist primarily of land, buildings, plants,
tools, equipment and computer hardware. They are
recorded at cost less depreciation and impairment.
2.11.1 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.
Development costs are recorded as intangible assets,
provided that:
f the project has a good chance of being technically viable;
f the Group has sufﬁcient human and material resources
to produce the intangible asset;
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
2.11.2 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.
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 fourth 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
2.11.3 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)
TGV railcars
Land is not depreciated.
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
2.11.4 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.
2.12 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 (CGU) 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.
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2.13 Other ﬁnancial assets
2.13.1 Other non-current ﬁnancial assets
This item primarily includes:
f 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;
f 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;
f the non-current portion of the fair value of financial
derivatives relating to La Poste’s bonds (see Note 27).
2.13.2 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 2.15 and 27).
2.14 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.
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
2.14.1 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.
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 monthend, 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.
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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 subcategory 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.
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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Impairment of overdrafts
2.14.4 Available-for-sale ﬁnancial assets
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 “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.
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.
2.14.2 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.
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 variableincome 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”.
2.14.3 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.
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.
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
2.14.5 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.
2.14.6 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 ﬁxedrate 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”.
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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.
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.
20
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.
2.14.8 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.
Distinction between debt and equity: Undated deeply
subordinated notes
A debt instrument or financial liability constitutes a
contractual obligation to pay out cash or some other
financial asset, or to exchange instruments under
potentially disadvantageous terms. An equity instrument
is a contract that evidences a residual interest in an
entity’s net assets. Subordinated notes are classiﬁed as
debt instruments or equity according, in particular, to the
analysis of their features, and more speciﬁcally, according
to their compensation method, depending on whether it is
discretionary or not.
Financial guarantees
In view of the conditions set forth by IAS 32, in order to
analyse the contractual substance of these instruments,
and taking their contractual features into consideration, the
undated deeply subordinated notes issued by Groupe CNP
Assurances are considered “debt instruments”.
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
Subordinate debentures issued that can be converted
into ordinary shares also meet the “debt instrument”
classification criteria, even if the coupons are treated
2.14.7 Guarantee commitments
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
as dividends deducted from equity. Deferred tax assets
associated with the distribution of coupons representing a
tax saving are ancillary to the coupons paid, and therefore
are recognised through equity in line with the recognition of
coupons. In accordance with IAS 32, subordinate debentures
issued that can be converted into ordinary shares have
been analysed as hybrid instruments comprising a debt
component and an equity component.
2.14.9 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.
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.
Registration document 2014
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:
f insurance policies that include a contingency clause
for the policy holder. This category includes policies for
personal risk, retirement, property damage and unitlinked savings policies with a guaranteed minimum
return;
f 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 eurodenominated 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 withproﬁts 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 policyholders.
Securities lending transactions
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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.
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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
subsidiaries involved, and enables a value to be assigned
to commitments in a high number of economic scenarios
using a stochastic approach.
20
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.
2.15 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 “Shortterm bonds and other debt”.
2.15.1 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-forﬂoating” 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.
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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.
2.15.2 Bonds measured at amortised cost
Bonds not backed by “fixed-for-floating” swaps are
measured at amortised cost based on the effective interest
rate.
2.15.3 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.
2.16 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 noncontrolling interests are recognised in reserves, Group
share.
2.17 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.
2.18 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.
2.19 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.
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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 2.14.10 above.
20
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 experiencebased 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.
2.20.2 End-of-career arrangements
La Poste records a provision for the costs of the end-ofcareer 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.
2.21 Assets held for sale
2.20 Employee beneﬁts
2.20.1 Post-employment 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.).
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.
2.22 Cash ﬂow statement
The balance sheet provision for defined benefit postemployment plans corresponds to the present value of
the liability at the balance-sheet date less the market
value of any plan assets where applicable (GeoPost UK).
The Cash Flow Statement presents the inﬂows and outﬂows
of cash and cash equivalents classiﬁed under operating,
investing or ﬁnancing activities.
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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:
f ﬂows from deposits collected from Banking activities
customers;
f Banking activities cash flows relating to liabilities to
credit institutions;
f acquisitions and disposals of securities in the Banking
activities investment portfolio;
f cash flows relating to Banking activities loans and
advances;
f 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.
Investing activities relate to the acquisition or disposal
of non-current assets and to any other investments not
included in cash and cash equivalents.
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Le Groupe La Poste’s cash ﬂows from investing activities
consist mainly in acquisitions or disposals of the following:
f intangible and tangible assets, adjusted for non-cash
transactions (accounts receivable or payable on noncurrent assets);
f equity investments in other companies;
f 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). Cash ﬂows relating
to La Banque Postale's subordinated debt are classiﬁed in
cash ﬂows from ﬁnancing activities.
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).
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
NOTE 3 First-time application of new accounting standards
3.1
First-time application of IFRS 10 and IFRS 11
3.2
First-time application of IFRS 12
3.1 First-time application of IFRS 10
and IFRS 11
3.1.1
First-time application of IFRS 10
IFRS 10 defines a single control model. This model
comprises three criteria: the power over the relevant
activities of the investee, exposure to variable returns from
the investee, and the ability to user its power to affect
these returns. Le Groupe La Poste reviewed its investment
portfolio in order to assess its control over the investees in
accordance with the new standard.
This review led the Group to conclude that it had control
as at 1 January 2013 over LBP Prévoyance, which was
previously consolidated using proportionate consolidation.
This assessment is based on the company’s decisionmaking process and on the ability of the Group to affect
the variable returns it is exposed to, through this process.
The Group’s consolidated accounts have been restated with
the full consolidation of LBP Prévoyance as at 1st January
2013. The opening balance sheet of LBP Prévoyance has
been restated in accordance with IFRS 3, mainly with the
following two items:
f a €200 million asset, amortised over 50 years (of which
90% over 25 years), representing the value of contracts
in stock at the date of takeover, supplemented by a
€70 million deferred tax liability;
f goodwill representing new business, which value is
based on cash ﬂows during the length of the distribution
agreement between the bank and its subsidiary at the
date of takeover. This goodwill amounts to €94 million
recorded in equity, Group share (partial goodwill method).
The review of the Group’s investments portfolio did not lead
to any other modiﬁcation in the assessment of control.
3.1.2
First-time application of IFRS 11
IFRS 11 deﬁnes two types of joint arrangements:
f joint ventures are those joint arrangements whereby
the joint venturers have rights to the net assets of the
arrangement. Joint ventures must be consolidated using
the equity method ;
f joint operations are joint arrangements whereby
operators have rights to the assets and obligations
for the liabilities relating to the arrangement. Joint
operations are accounted for such that each joint
operator recognises its share of assets, liabilities,
revenues and expenses.
After a review of its joint arrangements, Le Groupe La
Poste concluded that most of them can be classified as
joint ventures according to IFRS 11. They were previously
accounted for using proportionate consolidation. The
Group’s consolidated accounts have been restated by
accounting for these arrangements using the equity
method.
The main concerned joint arrangements are Asendia, La
Poste Telecom, Armadillo Bizpak, SCI Bataille and DTDC.
3.1.3
Restated data
The following restatement tables are presented hereafter:
f effect of the ﬁrst-time application of IFRS 10 and IFRS 11
on the income statement and the comprehensive income
statement for the year 2013;
f effect of the ﬁrst-time application of IFRS 10 and IFRS 11
on the balance sheet as at 1 January 2013 and as at
31 December 2013;
f effect of the ﬁrst-time application of IFRS 10 and IFRS 11
on the cash ﬂow statement for the year 2013.
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Effect of the ﬁrst-time application of IFRS 10 and IFRS 11 on the income statement
In accordance with recommendation No. 2013-01 by the Autorité des normes comptables issued on 4 April 2013, Le Groupe
La Poste chose to include its share in results from its joint ventures accounted for using the equity method in the line item
“Operating proﬁt/(loss) after share in results of joint ventures”.
INCOME STATEMENT 2013
2013
as reported
(€ million)
Revenues from commercial activities
First-time application
of IFRS 10
16,562
Net Banking Income
Operating revenue
Purchases and other expenses
Personnel expenses
Taxes and levies
Depreciation, amortisation, provisions
and impairment
2013
restated
(404)
16,158
21,715
5,522
35
22,084
35
(404)
5,557
(7,362)
(13)
284
(7,091)
(12,524)
(4)
80
(12,447)
(236)
(1)
1
(236)
(1,306)
1
12
(1,293)
Other operating revenue and expenses
130
3
132
Proceeds from asset disposals
(16)
2
(13)
Net operating expenses
Operating proﬁt/(loss) before share
in joint ventures
(21,314)
(17)
382
(20,949)
770
18
(22)
766
12
12
(9)
778
0
(222)
Share in joint ventures
Operating proﬁt/(loss) after share
in joint ventures
770
Financial proﬁt/(loss)
18
(223)
Proﬁt before tax of consolidated companies
Income tax
Share in proﬁts of equity associates
547
18
(9)
556
(127)
(6)
9
(125)
215
215
CONSOLIDATED NET PROFIT/(LOSS)
635
11
(0)
646
Net proﬁt/(loss), Group share
627
(3)
(0)
624
8
14
0
23
Attributable to non-controlling interests
302
First-time application
of IFRS 11
Registration document 2014
LE GROUPE LA POSTE
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
COMPREHENSIVE INCOME 2013
Amounts after tax
(€ million)
Consolidated net proﬁt/(loss)
2013
as reported
First-time application
of IFRS 10
First-time application
of IFRS 11
2013
restated
635
11
(0)
646
Recyclable comprehensive income items
Change in unrealised gains and losses
on ﬁnancial instruments
32
32
Translation adjustments
(31)
4
(27)
Share in comprehensive income and expenses
posted of equity associates
(22)
(4)
(26)
Non-recyclable comprehensive income items
Actuarial adjustments on employee beneﬁts
Comprehensive income and expenses recognised
in equity (after tax)
27
27
6
6
Comprehensive income
642
11
(0)
653
NET PROFIT/(LOSS), GROUP SHARE
633
(3)
(0)
630
8
14
Comprehensive income attributable
to non-controlling interests
Registration document 2014
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LE GROUPE LA POSTE
303
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Effect of the ﬁrst-time application of IFRS 10 and IFRS 11 on the balance sheet
BALANCE SHEET AS AT 1 JANUARY 2013
01/01/2013
as reported
First-time application
of IFRS 10
First-time application
of IFRS 11
01/01/2013
restated
1,562
94
(37)
1,619
825
0
(10)
815
Tangible assets
6,062
1
(11)
6,052
Investments in equity associates
2,446
76
2,522
894
0
894
(€ million)
Goodwill
Intangible assets
Other non-current ﬁnancial assets
Deferred tax assets
113
0
(2)
111
Non-current assets
11,903
95
16
12,014
Current banking assets
Customer receivables and loans
49,922
Receivables from credit institutions
81,254
0
(0)
81,254
49,922
Securities portfolio
54,281
712
54,993
Other current ﬁnancial assets
1,305
192
Accruals
2,387
76
Cash and central bank deposits
3,445
1,496
(0)
2,463
3,445
Other current assets
Inventories and work-in-progress
203
Trade and other receivables
2,453
143
0
(74)
2,379
2
783
1
(0)
212
Other current ﬁnancial assets
781
Income tax credit
211
Other accruals – Assets
126
(3)
123
2,167
(40)
2,127
Cash and cash equivalents
Assets held for sale
304
(61)
104
104
Current assets
198,641
980
(176)
199,445
TOTAL ASSETS
210,544
1,075
(160)
211,459
Registration document 2014
LE GROUPE LA POSTE
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
(€ million)
Share capital
Issue premium
Reserves
Unrealised gains and losses on ﬁnancial instruments
Actuarial adjustments on employee beneﬁts
01/01/2013
as reported
First-time application
of IFRS 10
First-time application
of IFRS 11
3,400
700
700
181
581
(22)
0
Net proﬁt/(loss), Group share
479
2,539
559
(110)
(45)
01/01/2013
restated
3,400
2,357
Cumulative translation adjustments
20
(110)
(0)
(45)
0
(0)
479
7,362
159
0
7,521
65
178
0
243
Consolidated equity
7,427
337
0
7,764
Medium- and long-term bonds
and other ﬁnancial debt
6,085
4
6,089
Employee beneﬁts – non-current liabilities
1,821
(0)
1,821
90
27
117
Equity, Group share
Non-controlling interests
Non-current provisions for contingencies and losses
Deferred tax liabilities
Non-current liabilities
142
82
(1)
224
8,140
82
29
8,251
1,005
608
385
1
Current provisions for contingencies and losses
Speciﬁc provisions for the Insurance
and Banking activities
Current provisions for contingencies and losses
Short-term bonds and other ﬁnancial debt
1,567
1,614
(1)
385
(36)
1,531
Current banking liabilities
Liabilities to credit institutions
Liabilities to customers
15,811
0
15,812
160,393
160,393
Debt evidenced by a certiﬁcate
and other ﬁnancial liabilities
7,185
9
7,194
Accruals
3,493
10
3,503
4,349
28
Other current liabilities
Trade and other payables
Government – Income tax
(111)
4,266
16
(0)
16
Employee beneﬁts – current liabilities
617
(0)
617
Other accruals – Liabilities
154
(40)
114
Current liabilities
194,977
656
(189)
195,444
TOTAL LIABILITIES
210,544
1,075
(160)
211,459
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305
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
BALANCE SHEET AS AT 31 DECEMBER 2013
31/12/2013
as reported
First-time application
of IFRS 10
First-time application
of IFRS 11
31/12/2013
restated
1,587
94
(55)
1,626
816
0
(9)
807
Tangible assets
5,941
1
(10)
5,931
Investments in equity associates
(€ million)
Goodwill
Intangible assets
2,634
107
2,741
Other non-current ﬁnancial assets
942
(4)
938
Deferred tax assets
153
(0)
(3)
149
Non-current assets
12,073
95
25
12,192
(0)
59,204
Current banking assets
Customer receivables and loans
59,204
Receivables from credit institutions
82,894
0
82,894
Securities portfolio
49,784
782
50,566
Other current ﬁnancial assets
1,200
234
1,435
Accruals
1,185
35
Cash and central bank deposits
2,182
(0)
1,220
2,182
Other current assets
Inventories and work-in-progress
136
Trade and other receivables
2,936
Other current ﬁnancial assets
430
(4)
132
(126)
2,810
3
433
Income tax credit
253
(0)
253
Other accruals – Assets
118
(1)
117
2,163
(59)
2,104
Cash and cash equivalents
Assets held for sale
306
0
120
120
Current assets
202,604
1,052
(189)
203,468
TOTAL ASSETS
214,677
1,147
(163)
215,661
Registration document 2014
LE GROUPE LA POSTE
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
(€ million)
Share capital
Issue premium
Reserves
Unrealised gains and losses on ﬁnancial instruments
Actuarial adjustments on employee beneﬁts
Cumulative translation adjustments
Net proﬁt/(loss), Group share
31/12/2013
as reported
First-time application
of IFRS 10
First-time application
of IFRS 11
3,800
20
31/12/2013
restated
3,800
900
900
2,698
181
(0)
2,879
635
(22)
(0)
613
0
(120)
(80)
(80)
(120)
627
(4)
(0)
624
8,460
156
(0)
8,615
57
178
(0)
235
Consolidated equity
8,516
334
(0)
8,850
Medium- and long-term bonds
and other ﬁnancial debt
6,043
6
6,048
Employee beneﬁts – non-current liabilities
1,685
(0)
1,685
80
33
114
Equity, Group share
Non-controlling interests
Non-current provisions for contingencies
and losses
Deferred tax liabilities
Non-current liabilities
166
78
(6)
238
7,976
78
32
8,086
1,126
676
540
1
Current provisions for contingencies and losses
Speciﬁc provisions for the Insurance
and Banking activities
Current provisions for contingencies and losses
Short-term bonds and other ﬁnancial debt
1,060
1,802
(2)
538
(37)
1,023
Current banking liabilities
Liabilities to credit institutions
Liabilities to customers
14,757
0
(0)
166,583
14,757
166,583
Debt evidenced by a certiﬁcate
and other ﬁnancial liabilities
6,790
10
6,801
Accruals
2,003
19
2,022
Trade and other payables
4,424
27
(94)
4,357
Government – Income tax
33
1
(1)
34
Other current liabilities
Employee beneﬁts – current liabilities
663
Other accruals – Liabilities
207
663
(60)
146
Current liabilities
198,185
735
(195)
198,725
TOTAL LIABILITIES
214,677
1,147
(163)
215,661
Registration document 2014
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307
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Effect of the ﬁrst-time application of IFRS 10 and IFRS 11 on the cash ﬂow statement
CASH FLOW STATEMENT 2013
2013 as reported
First-time
application
of IFRS 10
First-time
application
of IFRS 11
2013 restated
(€ million)
Group
Nonbanking
La Banque
Postale
La Banque
Postale
Non-banking
Group
Nonbanking
La Banque
Postale
EBITDA
2,149
824
1,325
101
(31)
2,206
790
1,415
Cash ﬂows from operating
activities before cost
of net debt and taxes
1,962
801
1,162
101
(27)
2,033
770
1,263
Cash ﬂows from operating
activities
(454)
1,056
(1,509)
13
(38)
(478)
1,018
(1,496)
Cash ﬂows from investing
activities
(869)
(1,403)
534
(0)
13
(857)
(1,391)
534
Cash ﬂows from ﬁnancing
activities
(256)
348
(605)
(13)
5
(265)
353
(618)
(0)
(19)
(23)
(23)
(0)
Change in cash and cash
equivalents
(4)
(4)
Opening cash and cash
equivalents
2,167
2,167
(40)
2,127
2,127
Closing cash and cash
equivalents
2,163
2,163
(59)
2,104
2,104
3.2 First-time application of IFRS 12
3.2.1
Structured entities
Consolidated structured entities
Consolidated subsidiaries
The detail of consolidated entities is presented in Note 41.
As at 31 December 2014, non-controlling interests are
not signiﬁcant, individually or collectively. Non-controlling
interests amounted to €270 million as at 31 December
2014, of which €200 million represent LBP Prévoyance’s
non-controlling interests.
3.2.2
3.2.4
Joint arrangements
Most of the Group’s joint arrangements are joint ventures
according to IFRS 11. The list of those arrangements is
presented in Note 41, and additional information is provided
in Note 18.1.
Pursuant to IFRS 10 and 11, and taking into account
materiality, the Group consolidates one structured entity,
FCT Elise 2012.
The “FCT Elise 2012” entity was first consolidated in
October 2012. It is a French fund whose debt is owned at
95% by La Banque Postale, and at 5% by Crédit Foncier
de France. This fund carries in its balance sheet assets
interest-free loans granted to retail customers of La Banque
Postale pre-dating 2010 (date of the launch of interest-free
loans in the bank’s balance sheet).
This fund represents total assets of €700 million as at
31 December 2014. It is fully consolidated.
Unconsolidated structured entities
3.2.3
Associates
The list of the Group’s associates is presented in Note 41
and additional information is provided in Note 18.1.
Supplementary information on CNP Assurances, the
signiﬁcant associate in the Group, is provided in Notes 2.3.3,
18.2 and 36.5.1.
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As at 31 December 2014, the Group identified the three
following classes of non-consolidated structured entities:
securitisation, asset management, and private equity.
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
Structured entities with ﬁnancial ties
The structured entities in which the Group has ﬁnancial interests have the following characteristics:
By activity
(€ million)
Selected ﬁnancial assets recorded in the balance sheet
Securitisation
Asset
Management
Private Equity
53
152
15
53
152
15
N/S
N/S
N/S
Derivatives
Equity instruments
Debt securities
Loans and receivables
Selected equity and ﬁnancial liabilities recorded in the balance sheet
Off-balance sheet items
13
Revenue and losses
2
51
1
Recurring revenue
2
51
1
Non-recurring revenue
Incured losses
The maximum loss exposure is usually limited to shares
held in the funds, except for those funds where La Banque
Postale grants a performance and capital guarantee.
Concerning funds managed by the entity La Banque Postale
SAM, and given the structuring of derivatives, the guarantee
only applies in case of a default by the performance swaps
suppliers. Counterparties are market counterparties and
the default risk is considered low.
La Banque Postale granted a capital guarantee to two
Group funds which had been impacted by the Greek debt
restructuring. One of those funds expired in January 2014,
and the guarantee did not have any impact on the year
proﬁt. The second fund expires in January 2015.
Structured entities without ﬁnancial ties
Deﬁned as sponsors are those funds that are structured
by a management company controlled by the Group:
La Banque Postale SAM, La Banque Postale AM, Caffil,
Tocqueville and XAnge Private Equity.
Revenues earned by the Group from these entities
amounted to €92 million in 2014, and mainly comprise
€61.5 million in management fees.
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20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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 SOFIAP
La Banque Postale acquired 66% of SOFIAP (Société
Financière pour l’Accession à la Propriété) on 20 May 2014
from Crédit Immobilier de France and SNCF. The remaining
34% are held by SNCF. This company represents total
assets of less than €2 billion and a Net Banking Income of
around €21.5 million. It manages 24,000 customers, mainly
SNCF employees.
The purchase price allocation to the fair value of assets and
liabilities acquired was based on provisional amounts, and
could be adjusted during the measurement period of 12
months from the acquisition date.
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Take-over of WnDirect
GeoPost acquired in April 2014 a 63.5% majority interest in
the capital of WnDirect, a British logistics services company.
It previously held a 20% interest. The revaluation of the
previously held interest gave rise to the recognition of a
€6.5 million gain in income. The provisional goodwill from
this acquisition amounted to €22 million.
Take-over of Siodemka
GeoPost acquired in October 2014 100% of Siodemka, a
leader on the Polish parcels delivery market. The provisional
goodwill from this acquisition amounted to €119 million.
4.2 Deconsolidated companies
None.
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
4.3 Income statement at constant scope and exchange rates
Restated net proﬁt/(loss)
excluding scope and exchange
rate effects
Reported net proﬁt/(loss)
(€ million)
Revenues and NBI
Purchases and other expenses
Personnel expenses
Taxes and levies
Depreciation, amortisation and provisions
2014
2013
restated
2014
2013
restated
22,163
21,715
21,955
21,749
(7,448)
(7,091)
(7,302)
(7,111)
(12,556)
(12,447)
(12,514)
(12,453)
(235)
(236)
(234)
(237)
(1,363)
(1,293)
(1,357)
(1,294)
Other current operating revenue and expenses
158
132
158
131
Pre-tax gains and losses on asset disposals
(18)
(13)
(18)
(13)
(21,462)
(20,949)
(21,268)
(20,977)
701
766
688
772
18
12
17
10
719
778
705
782
Net operating expenses
Operating proﬁt/(loss) before share in results
of joint ventures
Share in results of joint ventures
OPERATING PROFIT/(LOSS)
after share in results of joint ventures
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.
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 organisation. 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:
f the nature of the products distributed;
f the type or class of customer for whom they are
intended;
f the production process and distribution network;
f the regulatory environment.
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311
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
As part of its new strategic plan “La Poste 2020: Conquering
the Future”, the Group modified in the first half of 2014
the organisation of its business segments, as well as the
financial segment information reviewed by the Group’s
Management. The Group is now organised around five
operating segments, in addition to the Real Estate and
Shared Services segments:
f Services – Mail - Parcels: this segment includes
the mail activity (i.e. pick-up, sorting and delivery of
correspondence, advertising and press publications)
and the related services, the parcels activity carried out
by La Poste under the ColiPoste brand, as well as the
postman’s new services;
f GeoPost: this segment includes the Express activity
carried out by the GeoPost sub-group’s brands, primarily
DPD, Chronopost, Exapaq and SEUR;
f La Banque Postale: this segment includes the Banking
and Insurance activities of the La Banque Postale subgroup, as well as the services provided by some La Poste
staff to La Banque Postale under service agreements;
f La Poste Network: this 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;
f Digital Services: this segment includes all the Group’s
digital activities;
f 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;
f Shared Services: this segment includes the “Corporate”
activities of the Group’s registered 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.
312
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The amounts unallocated to the business segments
primarily correspond to:
f the net cost of regional development;
f the cost of the accessibility constraint imposed on La
Poste;
f ﬁnancial proﬁt/(loss) and tax.
Segmentation of revenues: the segmentation of La Poste’s
revenues 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.
No Group customer accounts for more than 10% of
consolidated revenues.
Segmentation of operating expenses: given that the
Mail, Parcels, La Banque Postale and La Poste Network
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:
f 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;
f the expenses for the La Poste Network 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.
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
5.2.1
Income statement by operating segment
2014
(€ million)
Non-Group revenues
and NBI
Inter-segment revenues
and NBI
Operating revenue
Operating proﬁt/(loss)
before share in results
of joint ventures
Share in results
of joint ventures
Operating proﬁt/(loss)
after share in results
of joint ventures
ServicesMailParcels GeoPost
La
Banque
Postale
Digital
Services
La Poste
Network
Real
Estate
Shared
Services
Unallocated (a)
Eliminations
Total
11,131
4,847
5,660
487
27
11
263
74
13
52
4,140
833
825
(6,201)
11,395
4,921
5,673
539
4,167
843
825
(6,201)
22,163
417
276
842
(62)
28
49
(154)
(0)
701
2
8
(3)
10
419
284
25
60
842
(62)
22,163
(694)
18
(154)
(694)
(0)
719
Financial proﬁt/(loss)
(198)
(198)
Income tax
(182)
(182)
Share in proﬁts
of associates
(0)
1
199
(1)
2
200
CONSOLIDATED NET
PROFIT/(LOSS)
Depreciation, amortisation,
provisions and impairment
539
(292)
(188)
(399)
(63)
(39)
(252)
(129)
(0)
(1,363)
(a) Primarily includes the contribution to regional development (including the costs relating to the accessibility constraint), ﬁnancial proﬁt/(loss),
and income tax.
Registration document 2014
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313
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
2013
(€ million)
Non-Group revenues
and NBI
Inter-segment revenues
and NBI
Operating revenue
Operating proﬁt/(loss)
before share in results
of joint ventures
ServicesMailParcels GeoPost
Digital
Services
La Poste
Network
Real
Estate
Shared
Services
Unallocated (a)
Eliminations
Total
11,356
4,271
5,557
495
27
9
242
72
17
54
4,138
845
825
(6,194)
11,599
4,342
5,574
549
4,165
854
825
(6,194)
21,715
544
306
726
7
41
122
(194)
(67)
766
2
10
(7)
8
546
316
33
130
Share in results
of joint ventures
Operating proﬁt/(loss)
after share in results
of joint ventures
La
Banque
Postale
726
7
21,715
(719)
12
(194)
(719)
(67)
778
Financial proﬁt/(loss)
(222)
(222)
Income tax
(125)
(125)
Share in proﬁts of associates
(0)
3
200
11
2
215
CONSOLIDATED NET
PROFIT/(LOSS)
Depreciation, amortisation,
provisions and impairment
646
(221)
(111)
(484)
(31)
(66)
(240)
(140)
0
(1,293)
(a) Primarily includes the contribution to regional development (including the costs relating to the accessibility constraint), ﬁnancial proﬁt/(loss),
and income tax.
314
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
5.2.2
20
Balance sheet by operating segment
As at 31 December 2014
ASSETS
(€ million)
Intangible and tangible assets
and goodwill
ServicesMailParcels
GeoPost
La Banque
Postale
Digital
Services
La Poste
Network
Real Estate
Shared
services
Eliminations
Total
511
(12)
8,535
880
2,381
1,102
244
110
3,319
Equity associates
52
143
2,830
5
0
45
Other non-current assets
71
37
203
13
3
22
3,075
4,227
(3,479)
1,096
Current assets
1,748
1,066
208,469
238
50
524
3,332
(1,770)
213,658
TOTAL
2,751
3,627
212,603
501
163
3,909
8,070
(5,261)
226,364
205
391
247
37
18
212
154
Real Estate
Shared
services
Investments (a)
1,263
(a) Purchase of intangible and tangible assets, and impact of changes in the scope of consolidation.
LIABILITIES
(€ million)
ServicesMailParcels
GeoPost
La Banque
Postale
Digital
Services
La Poste
Network
Shareholders’ equity
Eliminations
9,358
Total
9,358
Bonds and other ﬁnancial debt
(current and non-current)
320
1,008
3
53
1,654
7,241
Other non-current liabilities
998
251
328
40
619
54
103
Other current liabilities
2,132
1,027
204,212
209
666
246
1,026
(1,910)
207,608
TOTAL
3,450
2,286
204,543
302
1,285
1,954
17,728
(5,185)
226,364
Registration document 2014
(3,274)
7,005
2,393
LE GROUPE LA POSTE
315
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
As at 31 December 2013
ASSETS
GeoPost
La
Banque
Postale
Digital
Services
La Poste
Network
Real
Estate
Shared
services
Eliminations
Total
931
2,074
1,100
243
130
3,350
550
(12)
8,365
Equity associates
49
124
2,522
8
(0)
38
Other non-current assets
90
42
203
14
10
(11)
4,229
(3,490)
1,087
Current assets
1,669
850
197,118
219
662
658
3,689
(1,397)
203,468
TOTAL
2,739
3,089
200,943
484
802
4,036
8,468
(4,900)
215,661
189
234
(525)
28
31
244
985
Real
Estate
Shared
services
(€ million)
Intangible and tangible assets
and goodwill
Investments (a)
ServicesMailParcels
2,741
1,186
(a) Purchase of intangible and tangible assets, and impact of changes in the scope of consolidation.
LIABILITIES
(€ million)
ServicesMailParcels
GeoPost
La
Banque
Postale
Digital
Services
La Poste
Network
Shareholders’ equity
Bonds and other ﬁnancial debt
(current and non-current)
Other non-current liabilities
316
Eliminations
8,850
304
785
3
27
1,654
7,309
Total
8,850
(3,010)
7,071
829
223
295
25
550
49
67
Other current liabilities
2,148
810
194,076
178
675
339
927
(1,451)
197,702
TOTAL
3,280
1,818
194,374
229
1,225
2,042
17,153
(4,461)
215,661
Registration document 2014
LE GROUPE LA POSTE
2,038
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
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 2014
(€ million)
Revenues from commercial activities
Net Banking Income
OPERATING REVENUE
Segment assets
Investments
France
European Union
(excluding France)
Other
Total
12,538
3,535
430
16,503
5,660
-
-
5,660
18,198
3,535
430
22,163
225,392
865
107
226,364
942
300
20
1,263
France
European Union
(excluding France)
Other
Total
12,544
3,155
459
16,158
5,557
-
-
5,557
As at 31 December 2013
(€ million)
Revenues from commercial activities
Net Banking Income
OPERATING REVENUE
Segment assets
Investments
18,101
3,155
459
21,715
215,077
482
101
215,661
1,051
127
9
1,186
Registration document 2014
LE GROUPE LA POSTE
317
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Notes to the income statement
NOTE 6 Revenues
Le Groupe La Poste’s revenues from commercial activities is broken down as follows:
(€ million)
Services-Mail-Parcels revenues
2014
2013
11,131
11,356
Correspondence and other La Poste products and services
6,683
6,689
Advertising mail
1,286
1,401
581
679
Press (a)
Products and services of the subsidiaries (domestic mail)
428
447
International mail
595
570
Parcels
1,558
1,570
GeoPost revenue
4,847
4,271
Express France
1,273
1,074
Express Rest of World
3,574
3,196
487
495
27
27
11
9
16,503
16,158
Digital Services revenue
La Poste Network revenue (b)
Real Estate revenue
(c)
TOTAL
(a) “Press” revenues include contractual compensation paid in consideration for the reduced tariffs granted to press organisations as well as the
compensation of press operators.
(b) La Poste Network revenues include 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.
(c) Real Estate revenues correspond to the rentals agreed with non-Group tenants.
318
Registration document 2014
LE GROUPE LA POSTE
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
NOTE 7 Net Banking Income
The Group’s Net Banking Income is broken down as follows:
(€ million)
2014
2013
Interest and similar income
5,245
5,657
Interest and similar income on treasury and inter-bank transactions
1,668
2,037
Interest and similar income on customer transactions
2,203
2,096
Interest on available-for-sale ﬁnancial assets held to maturity,
and on hedging transactions
1,374
1,524
(2,052)
(2,346)
Interest and similar expenses
Interest and similar expenses on treasury and inter-bank transactions
(22)
(35)
(1,814)
(2,084)
(217)
(226)
Commission income
2,384
2,230
Commission expenses
(280)
(250)
19
26
Interest and similar expenses on customer transactions
Interest on debt evidenced by a certiﬁcate and hedging transactions
Net gains and losses on ﬁnancial instruments at fair value through proﬁt or loss
Net gains and losses on available-for-sale assets
169
117
Margin on insurance activities
212
160
Income and expenses from other activities
(38)
(38)
5,660
5,557
(€ million)
2014
2013
External services and general sub-contracting
1,552
1,533
550
583
TOTAL
NOTE 8 Purchases and other external expenses
Purchases and other expenses is broken down as follows:
Purchases
Outsourced transport
3,338
3,024
International mail delivery services
178
160
Rental expenses
754
735
Maintenance and repair costs
408
399
Telecommunications expenses
148
137
Travel and assignments
187
187
Other expenses
TOTAL
Registration document 2014
332
334
7,448
7,091
LE GROUPE LA POSTE
319
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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)
2014
2013
Wages and salaries, bonuses and allowances
8,673
8,592
Pension contributions
1,311
1,398
Other social security contributions
1,808
1,782
218
209
Employee welfare costs
CICE revenue
(349)
(255)
Change in post-employment provisions
13
1
Change in provisions for social security contingencies and staff litigation
18
21
Change in other employee provisions
Compensation-based taxes and duties
TOTAL
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 state employees, this
line item primarily includes the full discharge contribution
provided for by law.
74
(96)
790
794
12,556
12,447
The “CICE revenue” line item corresponds to the Tax Credit
to promote Competitiveness and Employment (CICE)
9.2 Headcount
The Group’s average headcount has changed as follows:
(full-time employee equivalent per year)
Average headcount
320
Registration document 2014
LE GROUPE LA POSTE
2014
2013
257,890
263,155
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
NOTE 10 Taxes and levies
Taxes and levies consist of the following items:
(€ million)
Local taxes
Other taxes and levies
TOTAL
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 (Law of 2 July 1990, as revised by the Law of
9 February 2010).
2014
2013
150
152
85
84
235
236
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 an 83% 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. 2014-1552 of
19 December 2014).
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) is broken
down as follows:
2014
2013
Net depreciation and amortisation
983
987
Intangible assets
261
264
(€ million)
Tangible assets
722
723
Net provisions and impairment
217
152
Goodwill
8
Other non-current assets
Inventories
28
11
1
1
Accounts receivable
19
6
Losses on unrecoverable receivables
18
19
Provisions for contingencies and losses
144
116
Cost of risk (Banking activities)
163
154
Cost of risk and other impairments, charges and risks (Banking activities)
(15)
50
Banking activities cost of risk – unrecoverable receivables
178
105
1,363
1,293
TOTAL
Registration document 2014
LE GROUPE LA POSTE
321
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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 is broken down as follows:
Income/(expenses)
2014
(€ million)
2013
Capitalised production
127
102
Royalties
(19)
(31)
50
53
158
132
Accretive effect of the CNP Assurances capital increase (a)
8
Other current operating revenue and expenses
TOTAL
(a) 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)
Interest expense on ﬁnancing transactions
(a)
Change in the fair value of borrowings and debt-related swaps (b)
Income from cash and cash equivalents
(c)
TOTAL
(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.
322
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LE GROUPE LA POSTE
2014
2013
(181)
(194)
(4)
(24)
28
20
(157)
(197)
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
The measurement of the bonds recognised at fair value
through profit or loss using the fair value option as at
31 December 2014 takes into account the decrease in the
cost of credit risk experienced in 2014. 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 €25 million impact
on 2014 ﬁnancial proﬁt/(loss).
13.2
20
The decrease in the cost of credit risk in 2013 had a negative
€51 million impact on ﬁnancial proﬁt/(loss) in that year.
Other ﬁnancial items
Discounting expenses
(€ million)
Provisions for employee beneﬁts and return on plan assets
Other provisions
TOTAL
2014
2013
(44)
(37)
(1)
(0)
(44)
(37)
Other ﬁnancial income and expenses
2014
2013
Net foreign exchange gains
1
4
Additions to and reversals of provisions
3
5
(€ million)
Other ﬁnancial income and expenses
TOTAL
(1)
3
3
12
2014
2013
(262)
(145)
80
20
(182)
(125)
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)
Current tax (expense)
Deferred tax income/(expense)
TOTAL TAX INCOME/(EXPENSE)
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.
Registration document 2014
LE GROUPE LA POSTE
323
20
14.2
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Tax on other comprehensive income
2014
2013
Amount before tax
122
40
Tax impact
(43)
(8)
79
32
29
(27)
29
(27)
2014
2013
(€ million)
Change in unrealised gains and losses on ﬁnancial instruments
AMOUNT NET OF TAX
Translation adjustments
Amount before tax
Tax impact
AMOUNT NET OF TAX
14.3
Tax proof
The explanation of the tax reconciliation is as follows:
(€ million)
Net proﬁt/(loss), Group share
Share in proﬁts of equity associates and joint ventures
Income tax
Non-controlling interests
Consolidated proﬁt/(loss) before tax and share in proﬁts of equity associates
and joint ventures
Theoretical tax expense at 38%
(a)
Prior tax-loss carry forwards deducted during the ﬁnancial year
624
(228)
182
125
27
23
503
544
(191)
(207)
3
3
Unused tax losses created during the ﬁnancial year
(11)
(9)
Limitation and creation of deferred tax assets
(51)
0
Limitation and creation of deferred tax assets on the Home Loan Savings provision
(45)
4
37
28
8
12
Tax on distributed revenues
(8)
(5)
Permanent differences
81
50
Other items
(4)
(1)
Tax rate differential for foreign subsidiaries
Tax beneﬁts, tax credits and foreign tax allowances
Tax restatements
ACTUAL TAX CHARGE
(a) Including the 3.3% social solidarity contribution and the one-off contribution of 10.7%.
324
513
(218)
Registration document 2014
LE GROUPE LA POSTE
10
81
(182)
(125)
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
14.4
20
Deferred tax recognised on the balance sheet
(€ million)
Deferred tax
assets
Deferred tax
liabilities
Total
111
224
(113)
31/12/2012
Impact on net proﬁt/(loss)
30
10
20
Reclassiﬁcations
(3)
(3)
0
Impact on equity
7
0
7
Change in consolidation scope
4
7
(3)
149
238
(89)
31/12/2013
Impact on net proﬁt/(loss)
81
1
80
Reclassiﬁcations
61
61
0
Impact on equity
(40)
Change in consolidation scope
31/12/2014
(40)
12
8
4
264
309
(44)
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)
31/12/2014
31/12/2013
409
394
Deferred tax assets
Employee beneﬁts
Other non-deductible provisions
Other timing differences
Swaps and similar
Tax loss carry-forwards
81
45
103
92
15
20
7
3
27
14
(378)
(419)
264
149
129
117
Revaluation of contributions to Poste Immo
146
162
IAS 32-39 Financial instruments
211
93
Deductible goodwill
139
129
Other tax timing differences
Asset/liability offsets (a)
TOTAL ASSETS
Deferred tax liabilities
Regulated provisions
Other tax timing differences
Asset/liability offsets (a)
TOTAL LIABILITIES
61
156
(378)
(419)
309
238
(a) Deferred tax assets and liabilities are offset for each tax entity or tax consolidation group.
Registration document 2014
LE GROUPE LA POSTE
325
20
14.6
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Unrecognised deferred tax assets
Type and amount of unrecognised deferred tax asset bases
31/12/2014
(€ million)
French companies
in the tax
consolidation group
Home Loan Savings Provision
Non-consolidated
French
companies
419
Employee beneﬁts
1,042
Other timing differences
TOTAL
1,474
4
LE GROUPE LA POSTE
1,046
22
35
143
76
218
147
98
1,718
Unrecognised deferred tax asset bases amounted to €1,370 million as at 31 December 2013.
Registration document 2014
Total
419
13
Ordinary tax losses
326
Foreign
companies
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
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
CGU
(€ million)
Segment
31/12/2014
31/12/2013
GeoPost Central Europe
GeoPost
460
460
Exapaq
GeoPost
334
334
GeoPost Espagne
GeoPost
262
248
Digital Services
Digital Services
146
146
GeoPost UK
GeoPost
139
130
(a)
GeoPost
119
Siodemka
La Banque Postale Prévoyance (b)
La Banque Postale
94
94
Mediapost
Services-Mail-Parcels
53
52
DPD Laser Finance
GeoPost
40
39
ViaPost
Services-Mail-Parcels
39
39
Tigers
GeoPost
34
23
27
Groupe Tocqueville
La Banque Postale
28
WnDirect
GeoPost
22
Other GeoPost companies
GeoPost
27
Other banking companies
La Banque Postale
TOTAL
Services-Mail-Parcels
GeoPost
25
8
8
1,805
1,626
92
91
1,437
1,259
La Banque Postale
130
130
Digital Services
146
146
(a) See Note 4.1.
(b) See Note 3.1.
Registration document 2014
LE GROUPE LA POSTE
327
20
15.2
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Change in the net book value of goodwill
(€ million)
2014
2013
Opening balance
1,626
1,619
Gross amount
1,761
1,755
Impairment
(134)
(136)
Acquisitions (a)
174
33
2
(9)
Translation adjustments
11
(17)
Impairment
(8)
0
1,805
1,626
Gross amount
1,948
1,761
Impairment
(143)
(134)
Of which:
Reclassiﬁcations and other
CLOSING BALANCE
Of which:
(a) Of which mainly Siodemka for €119 million, WnDirect for €22 million and SEUR franchises in Spain for €15 million (see Note 4.1).
15.3
f GeoPost segment: one CGU per geographical area, and
Impairment
one CGU for the Exapaq group;
f La Banque Postale segment: one CGU per business unit;
15.3.1 Impairment of goodwill
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.
Goodwill is allocated to Cash Generating Units as follows:
f Services-Mail-Parcels segment: one CGU for each
business unit;
328
Registration document 2014
LE GROUPE LA POSTE
f Digital Services segment: one CGU.
The impairment test involves comparing the net book value
of the CGUs, including any goodwill, to their recoverable
value, calculated according to the method explained in
Note 2.12.
If the CGU’s recoverable value falls below its net book
value, an impairment is recognised and initially charged to
goodwill.
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
The main assumptions used for the Group’s impairment tests are as follows:
Discount rate
Euro zone
Other
Standard
growth rate
Number
of projected years
Services-Mail-Parcels
6.2% to 7.7%
5.6%
2%
5
GeoPost
7.3% to 8.2%
7.8% to 15%
2%
5
Segment
2014
La Banque Postale
6.7%
-
1%
5
Digital Services
7.7%
-
2%
5
2013
Services-Mail-Parcels
7% to 7.8%
7.0%
2%
5
GeoPost
6.4% to 9%
7.1% to 10.9%
2%
5
7.7%
-
1%
5
La Banque Postale
The tests performed on the Group’s goodwill in 2014 led
to the full depreciation of IBC’s goodwill, for an amount of
€8 million.
15.3.2 Impairment of intangible and tangible assets
La Poste’s Mail CGU did not show any indication of
impairment as at 31 December 2014.
No impairment was recorded in 2013.
Sensitivity analysis
An increase of one point 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 2014.
Registration document 2014
LE GROUPE LA POSTE
329
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
NOTE 16 Intangible assets
(€ million)
Software, patents
and licences
Intangible
assets in progress
Other
intangible assets
Total
1,411
198
791
2,400
GROSS AMOUNT
Balance as at 31/12/2012
Acquisitions
Disposals
Change in consolidation scope
Transfers
49
147
39
235
(310)
(26)
(9)
(344)
5
(0)
14
19
102
(140)
56
18
1,257
179
890
2,326
96
190
42
327
(42)
(16)
(12)
(71)
4
0
4
7
107
(146)
38
(1)
1,422
208
961
2,590
(1,115)
N/A
Balance as at 31/12/2013
Acquisitions
Disposals
Change in consolidation scope
Transfers
BALANCE AS AT 31/12/2014
DEPRECIATION AND IMPAIRMENT
Balance as at 31/12/2012
Depreciation for the year
Impairment
Reversals on disposals
Change in consolidation scope
(469)
(1,584)
(169)
(94)
(263)
0
0
0
322
9
331
(3)
1
(2)
(555)
(1,519)
Balance as at 31/12/2013
(964)
Depreciation for the year
N/A
(160)
(100)
(261)
Impairment
(3)
(5)
(7)
Reversals on disposals
44
12
56
Change in consolidation scope
(3)
(7)
(1,088)
(4)
0
(652)
(1,740)
As at 31/12/2013
293
179
335
807
AS AT 31/12/2014
334
208
309
850
BALANCE AS AT 31/12/2014
NET AMOUNT
The “transfers” lines relate to the commissioning of assets.
330
Registration document 2014
LE GROUPE LA POSTE
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
NOTE 17 Tangible assets
(€ million)
Land and buildings
Machinery and
equipment
Vehicles
Other
Assets under
construction
Total
4,850
2,309
836
2,911
245
11,151
GROSS AMOUNT
Balance as at 31/12/2012
Acquisitions
17
106
167
156
321
766
(88)
(64)
(126)
(173)
(1)
(451)
11
9
1
8
0
29
Transfers
90
144
2
89
(382)
(57)
Translation adjustments
(4)
(1)
(4)
(1)
(0)
(11)
4,876
2,502
876
2,990
183
11,427
14
95
126
145
326
706
(62)
(38)
(151)
(148)
(6)
(405)
25
Disposals
Change in consolidation scope
Balance as at 31/12/2013
Acquisitions
Disposals
Change in consolidation scope
Transfers
Translation adjustments
BALANCE AS AT 31/12/2014
71
(61)
3
12
0
193
8
1
82
(218)
65
9
3
2
4
6
23
5,100
2,509
856
3,085
291
11,842
(1,117)
(1,571)
(382)
(2,029)
N/A
(5,099)
(197)
(180)
(91)
(255)
DEPRECIATION AND IMPAIRMENT
Balance as at 31/12/2012
Depreciation for the year
Impairment
(23)
(724)
(5)
(28)
Reversals of impairment
18
(0)
0
0
18
Reversals on disposals
30
62
91
164
347
Change in consolidation scope
(3)
(17)
(1)
(1)
(22)
Transfers
25
(17)
0
(1)
7
1
1
2
1
5
(1,265)
(1,722)
(386)
(2,121)
(198)
(181)
(103)
(240)
Translation adjustments
Balance as at 31/12/2013
Depreciation for the year
Impairment
Reversals of impairment
Reversals on disposals
Change in consolidation scope
(24)
N/A
(5,495)
(722)
(6)
(30)
9
(0)
0
0
9
24
36
110
143
313
(2)
(7)
(1)
(9)
(19)
(13)
(16)
0
18
(10)
(3)
(3)
(1)
(2)
(9)
(1,471)
(1,892)
(386)
(2,212)
N/A
(5,962)
As at 31/12/2013
3,611
780
489
869
183
5,931
AS AT 31/12/2014
3,629
617
470
874
291
5,880
As at 31/12/2013
48
27
12
5
92
As at 31/12/2014
45
22
8
4
79
Transfers
Translation adjustments
BALANCE AS AT 31/12/2014
NET AMOUNT
Of which ﬁnance leases
The “transfers” lines correspond to the commissioning of assets and to the reclassiﬁcation of certain tangible assets to
“assets held for sale” (see Note 24).
Registration document 2014
LE GROUPE LA POSTE
331
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
NOTE 18 Equity associates
18.1 Change in investments in associates
18.2 Information on CNP Assurances
18.1
Change in investments in associates
Companies
with
negative net
assets (a)
(€ million)
CNP Assurances
OPCI Akatea
Yurtiçi Kargo
ASENDIA
Associate
Associate
Associate
Joint
control
2,327
34
41
47
2
4
2
(4)
(4)
Nature of control
Balance as at 31/12/2012
Group share in the proﬁts of equity
associates
200
Dividend payments (b)
Net change in the fair value
of ﬁnancial instruments
and AFS securities
26
Change in consolidation scope
0
Capital increase
Transfers and reclassiﬁcations
Translation adjustments
Accretive effect of the capital
increase
Other
Balance as at 31/12/2013
Group share in the proﬁts of equity
associates
Dividend payments
Net change in the fair value
of ﬁnancial instruments
and AFS securities
BALANCE AS AT 31/12/2014
74
2,522
(27)
(7)
27
235
(1)
(9)
(4)
22
25
25
(11)
(11)
(5)
(49)
8
8
(0)
32
33
48
(3)
106
2,741
(34)
(3)
199
2
1
2
17
221
(106)
(4)
(4)
(1)
(14)
(129)
0
217
26
26
7
7
217
Capital increase
Translation adjustments
(4)
1
2
2,830
La Poste Mobile
0
(8)
(2)
2,522
TOTAL
Joint control
0
(36)
Change in consolidation scope
Transfers and reclassiﬁcations
Other
2
30
32
51
(3)
(5)
(5)
(1)
133
3,075
(37)
(a) Recorded in “Other provisions for contingencies and loss” (see Note 26.2).
(b) 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 of 31 December 2012). This transaction resulted in a proﬁt of
€8 million being recognised in income (see Note 12).
The significant associate investment in the Group is CNP Assurances, which represents 96% of the total value of the
investments in associates. No joint venture is signiﬁcant.
332
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
18.2
20
Information on CNP Assurances
(€ million)
Control and interest percentage
(a)
31/12/2014
31/12/2013
20.15%
20.15%
2,037
2,060
Fair value of the Group’s investment based on the market price
(a) See Note 2.3.3.
Detailed information on CNP Assurances is presented in its registration document, available at: www.cnp.fr/en/The-Group/
Publications/Registration-Documents.
Reconciliation of the ﬁnancial information with the investment value on the balance sheet –
CNP ASSURANCES GROUP
31/12/2014
31/12/2013
Equity attributable to owners of the parent
16,680
14,627
Restatements (deeply-subordinated notes)
(2,658)
(2,132)
2,826
2,518
4
4
2,830
2,522
(€ million)
Equity at percentage of interest held by Le Groupe La Poste
Net goodwill
INVESTMENT VALUE ON LE GROUPE LA POSTE BALANCE SHEET
NOTE 19 Other ﬁnancial assets
31/12/2014
(€ million)
Current
Unconsolidated investments
31/12/2013
Non-current
Current
184
Provisions for unconsolidated investments
Non-current
185
(33)
(30)
Deposits and guarantees paid
30
17
39
15
Financial derivatives
64
325
129
290
3
71
4
76
Loans for local authority housing
Provisions for loans for local authority housing
Financial assets held for investment purposes
(31)
(33)
273
290
252
404
Other ﬁnancial assets
12
15
10
40
Provisions for other ﬁnancial assets
(0)
(6)
383
831
TOTAL
Registration document 2014
(8)
433
938
LE GROUPE LA POSTE
333
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Unconsolidated equity investments
31/12/2014
31/12/2013
Percentage held
Gross
amount
Net
amount
Net
amount
Crédit Logement
6%
94
94
98
XAnge Capital 2
40%
12
12
12
100%
0
0
5
(€ million)
Asset Management LAB
Seur Portugal
(a)
7
7
Other - French companies
100%
35
32
33
Other - foreign companies (see details in Note 42)
36
6
6
184
151
155
TOTAL
(a) Company acquired in December 2014 to be consolidated in 2015.
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.
Deposits and guarantees
This line primarily corresponds to the security deposits paid
in respect of ﬁnancial instruments put in place to manage
bond debt (€25 million as at 31 December 2014, compared
with €35 million as at 31 December 2013).
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
(€413 million as at 31 December 2014, and €555 million as
at 31 December 2013), and negotiable debt securities where
the maturities usually range between three and 12 months
(€150 million as at 31 December 2014 and €100 million as
at 31 December 2013).
Loans for local authority housing
These loans primarily consist of loans to construction
entities with very long-term maturities.
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.
334
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LE GROUPE LA POSTE
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
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)
31/12/2014
31/12/2013
861
806
Ordinary customer receivables
Other customer receivables
Provisions
Customer sight loans and receivables
Short-term credit facilities
122
94
(146)
(138)
838
763
4,043
3,404
43,631
49,984
Loans to legal entities
5,511
3,373
Securities received under repurchase agreements
1,748
350
Provisions
(234)
(172)
64,699
56,939
Home loans
Term customer loans and receivables
Finance lease transactions
951
561
1,369
942
67,857
59,204
Securities equivalent to customer loans and receivables
TOTAL
This line primarily consists of home loans, which are
continuing to expand.
Short-term credit facilities primarily include:
f €3,827 million in consumer loans (excluding accrued
interest);
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).
f 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 33.3.1.
Registration document 2014
LE GROUPE LA POSTE
335
20
20.2
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Receivables from credit institutions
31/12/2014
31/12/2013
Ordinary accounts receivable
188
136
Overnight deposits and loans
12
12
200
148
79,477
78,560
1,507
1,654
190
191
81,174
80,404
1,941
2,342
83,315
82,894
(€ million)
Sight loans and receivables – credit institutions
Term accounts and loans
Securities received under repurchase agreements
Subordinated and participating loans
Term deposits and loans – credit institutions
Securities equivalent to loans and receivables due from credit institutions
TOTAL
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 LEP savings
accounts.
20.3
Securities portfolio
(€ million)
Government securities and similar
Bonds and other ﬁxed-income securities
Financial assets held to maturity
Government securities and similar
31/12/2014
31/12/2013
25,921
28,889
2,375
3,377
28,297
32,266
2,213
2,086
Bonds and other ﬁxed-income securities
9,427
9,405
Equities and other variable-income securities
1,345
1,176
12,984
12,666
Available-for-sale ﬁnancial assets
Government securities and similar
Bonds and other ﬁxed-income securities
Equities and other variable-income securities
783
105
8,549
5,097
45
51
Financial assets held for transaction purposes
9,377
5,253
Interest-rate derivatives
1,635
241
Foreign exchange derivatives
11
3
Equity and index derivatives
6
7
1,652
250
11,029
5,504
231
130
52,541
50,566
Derivatives/Positive Fair Value
Financial assets at fair value through proﬁt or loss
Revaluation adjustment on hedged portfolios (fair value hedges)
TOTAL
336
An assessment of credit risks on receivables due from credit
institutions (Banking activities) is set out in Note 33.3.2.
Registration document 2014
LE GROUPE LA POSTE
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
The general principles governing the recognition of
securities and derivatives for the Banking activities are set
out in Notes 2.14.2 to 2.14.5.
20
An assessment of credit risks for the main items in the
Banking activities securities portfolio can be found in
Note 33.3.
The fair value calculation methods for banking activities
ﬁnancial instruments are set out in Note 34.2.
20.4
Other banking ﬁnancial assets
(€ million)
31/12/2014
31/12/2013
579
490
592
575
Deposits and guarantees paid
(a)
Other miscellaneous receivables Accrued income
TOTAL
350
369
1,521
1,435
(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
31/12/2014
31/12/2013
Pre-paid expenses
33
30
Collection accounts
6
93
Settlement accounts for securities transactions
3
10
341
248
(€ million)
Other insurance assets
Other accruals – Assets
615
838
TOTAL
998
1,220
31/12/2014
31/12/2013
Accruals - Liabilities
(€ million)
Settlement accounts for securities transactions
9
11
Other accruals – Liabilities
1,986
2,011
TOTAL
1,995
2,022
Registration document 2014
LE GROUPE LA POSTE
337
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
NOTE 21 Inventories and work-in-progress
31/12/2014
31/12/2013
Gross amount
Provisions
Net amount
Net amount
Raw materials, supplies inventories
and goods inventories
95
(5)
90
101
Finished and semi-ﬁnished product
inventories and work-in-progress
29
(1)
29
31
124
(5)
119
132
(€ million)
TOTAL
Inventories primarily consist of spare parts for technical facilities and ﬁnished products sold in the post ofﬁce network
(primarily stamp-collecting products).
NOTE 22 Trade and other receivables
31/12/2014
(€ million)
Advances and deposits paid
56
32
2,018
1,836
(100)
(81)
International mail receivables
518
503
CICE tax credit receivable
543
255
Other receivables
301
295
Trade receivables and related accounts
Provisions on trade receivables and related accounts
Provisions on other receivables
TOTAL
International mail receivables (€518 million) are primarily
owed by foreign post ofﬁces for the delivery of the mail that
they have passed on in France.
338
31/12/2013
Registration document 2014
LE GROUPE LA POSTE
(33)
(29)
3,303
2,810
Likewise, trade and other payables include an international
mail service liability (see Note 31) of €468 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.
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
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)
31/12/2014
31/12/2013
Cash equivalents
1,166
1,964
Cash at bank
217
133
Cash on hand
7
7
1,389
2,104
TOTAL
Cash Equivalents
Cash and cash equivalents consisted mainly of term deposits accessible at any time, or within three months, for an amount
of €1,125 million (€875 million as at 31 December 2013). As at 31 December 2013, they also included units in money-market
units for an amount of €1,045 million.
23.2
Cash and central bank deposits (Banking activities)
31/12/2014
(€ million)
Cash on hand (including cash held at post ofﬁces reclassiﬁed as at 31 December 2013)
Central banks
TOTAL
Cash held at post ofﬁces
Until 2013, cash held at post ofﬁces belonged to La Poste
and was excluded from 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 treated it as a
current banking use.
As at 30 November 2014, this cash was transferred to La
Banque Postale for its nominal value, i.e. €633 million. It
is now included in the “Cash on hand” line item presented
above. The amount of cash held at post offices as at
31 December 2013 (i.e. €612 million) has been reclassiﬁed
on the same line.
31/12/2013
1,006
885
944
1,296
1,950
2,182
In the cash ﬂow statement, before the transfer, cash held
at post offices was excluded from cash at the beginning
and end of the period and its changes were shown under
non-banking “Cash ﬂows from operating activities”.
The change in cash held at post ofﬁces between 1 January
and 30 November 2014 (i.e. +€21 million) is thus included on
the same line as in 2013. The changes after 30 November
2014 are now included in the “Cash from banking activities”
line item.
Registration document 2014
LE GROUPE LA POSTE
339
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
NOTE 24 Assets and liabilities held for sale
The assets held-for-sale as at 31 December 2014 and 2013 corresponded to properties under promise of sale.
NOTE 25 Share capital
As at 31 December 2014, 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.
f 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;
f an equity warrant (BSA) is attached to each new
Background
On 1 March 2010, La Poste became a société anonyme
(French 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 governmentowned 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:
f 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;
340
Registration document 2014
LE GROUPE LA POSTE
share. The BSAs entitled 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
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);
f 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, of which €2 was an issue
premium.
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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 2014, underwriting provisions for the Insurance and Banking activities, classiﬁed as current provisions
for contingencies and losses, is broken down as follows:
Home Loan
Savings risk
Insurance
underwriting
provisions
Total
331
1,283
1,614
0
1,393
1,393
(23)
(1,172)
(1,195)
0
(10)
(10)
Balance as at 31/12/2013
309
1,494
1,802
Addition for the year
132
(€ million)
Balance as at 31/12/2012
Addition for the year
Reversal for use
Other movements
Reversal for use
Other movements
BALANCE AS AT 31/12/2014
440
1,533
1,664
(1,297)
(1,297)
59
59
1,787
2,228
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 2.19).
This provision was subject to a net increase of €132 million over the ﬁnancial year, which is broken down as follows:
(€ million)
Amounts collected
PEL and CEL
amounts granted
2014 provisions
2013 provisions
Net movements
2013/2014
Age
Over 10 years
5,809
93
96
(3)
4 to 10 years
7,714
110
100
10
Under 4 years
9,531
203
39
164
407
235
172
Total Home Loan Savings Plans
(PEL)
Total Home Loan Savings
Accounts (CEL)
TOTAL
23,054
118
5,157
735
34
73
(39)
28,211
853
441
309
132
Registration document 2014
LE GROUPE LA POSTE
341
20
26.2
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Other provisions for contingencies and losses
As at 31 December 2014, the other provisions for contingencies and losses is broken down as follows:
Employee-related
disputes
Other disputes
Non-current provisions
26
30
34
90
Current provisions
49
52
285
385
Balance as at 31/12/2012
75
81
319
475
(€ million)
Addition for the year
Total
75
55
179
310
Reversal for use
(26)
(18)
(48)
(92)
Reversal of provisions no longer required
(29)
(38)
(11)
(79)
(0)
0
(1)
(1)
2
(1)
38
39
44
6
64
114
Discounting
Other movements
Non-current provisions
Current provisions
53
73
413
538
Balance as at 31/12/2013
97
79
476
652
Addition for the year
54
71
172
297
Reversal for use
(23)
(10)
(97)
(130)
Reversal of provisions no longer required
(13)
(35)
(20)
(68)
0
0
1
1
Discounting
Other movements
Non-current provisions
Current provisions
BALANCE AS AT 31/12/2014
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.
342
Other
Registration document 2014
LE GROUPE LA POSTE
0
1
3
4
63
19
90
172
53
86
446
585
115
105
536
757
As at 31 December 2014, other provisions included a
€37 million provision covering the negative net asset
value of equity associates and joint ventures, compared to
€34 million as at 31 December 2013 (see Note 18.1).
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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 Non-banking activities derivatives
27.5 Other ﬁnancial debt
27.1
Breakdown of ﬁnancial debt
31/12/2014
(€ million)
Financial debt at amortised cost
Short-term
Mediumand long-term
Short-term
Mediumand long-term
730
3,482
635
3,467
Bonds
Finance leases
La Poste savings bonds
Commercial paper
Current bank facilities
Deposits and guarantees received
Other borrowings at amortised cost
3,380
12
Interest accrued not due on borrowings
63
150
13
30
TOTAL CURRENT AND NON-CURRENT
44
353
26
368
25
7
30
4
17
2,096
207
2,015
518
530
22
15
42
27
4
8
7
9
128
Medium- and long-term bonds
and other ﬁnancial debt (non-current)
Short-term bonds and other ﬁnancial debt (current)
21
61
Borrowings subject to fair value hedging
Other derivatives
46
3,380
285
Borrowings designated at fair value
Financial derivative liabilities relating to bonds
31/12/2013
131
6,120
885
7,005
Registration document 2014
6,048
1,023
7,071
LE GROUPE LA POSTE
343
20
27.2
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Breakdown of debt by maturity
Maturity
of < 1 year
2014
(€ million)
Maturity
of 1 to 5 years
2013
Maturity
of > 5 years
Total
2014
2013
2014
2013
2014
2013
961
163
2,419
3,217
3,380
3,380
32
2
14
42
57
65
Financial debt at amortised cost
Bonds
Finance leases
12
La Poste savings bonds
Commercial paper
Current bank facilities
Deposits and guarantees received
Other borrowings at amortised cost
21
61
63
61
63
285
150
285
150
13
30
13
30
353
368
24
24
379
393
7
4
30
17
37
21
207
1,343
1,341
2,096
2,222
518
530
518
530
2
1
Borrowings at fair value
Bonds
753
674
Borrowings subject to fair value hedging
Bonds
Financial derivative liabilities relating to bonds
Other derivatives
22
42
15
27
37
69
4
7
8
9
13
16
2,932
2,114
Accrued interest not due
128
131
TOTAL
885
1,023
27.3
3,188
3,934
128
131
7,005
7,071
Bonds
Bond debt, excluding accrued interest, changed as follows:
(€ million)
Borrowings at
amortised cost
Borrowings
at fair value
Hedged
borrowings
Total
3,853
2,294
546
6,694
Balance as at 31/12/2012
New borrowings
Redemptions
Issue premium
250
250
(726)
(726)
3
3
Change in credit risk
51
Other changes
Balance as at 31/12/2013
3,380
51
(123)
(16)
(139)
2,222
530
6,133
New borrowings
Redemptions
(207)
(207)
25
25
Issue premium
Change in credit risk
Other changes
BALANCE AS AT 31/12/2014
344
Registration document 2014
3,380
LE GROUPE LA POSTE
57
(12)
45
2,096
518
5,995
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Debt repayment
The bond issued in 2007 with a nominal value of CHF250
million was redeemed in July 2014. This bond was backed
by a swap that allowed the currency risk to be fully hedged.
The net cash outflow from the redemption amounted to
€151 million.
the decrease in the cost of credit risk over the year. This
change had a €25 million positive impact on the fair value
of the bonds as at 31 December 2014, compared with
31 December 2013 (as opposed to a €51 million positive
impact in 2013).
The other changes primarily related to:
f the increase in the fair value of borrowings designated
Change in credit risk
The fair value measurement of the borrowings designated
at fair value through proﬁt or loss (see Note 2.15.1) reﬂects
at fair value through proﬁt or loss at inception mainly
due to the decrease in long-term interest rates in 2014;
f 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)
31/12/2014
31/12/2013
(12)
(16)
12
16
-
-
Revaluation of hedged borrowings through proﬁt or loss
Revaluation of hedges on borrowings through proﬁt or loss
NET IMPACT ON PROFIT OR LOSS
As at 31 December 2014, the Group bonds, which have a nominal value of over €500 million, is broken down as follows:
Nominal value
Maturity
Currency
Nominal rate
(millions of
currency units)
Accounting
treatment
2003
2023
Euro
4.375%
580
Fair value
2008
2018
Euro
4.500%
500
Fair value
Issue date
Other bonds at fair value
697
TOTAL BONDS AT FAIR VALUE
1,777
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
2009
3,380
2016
Euro
4.750%
TOTAL BONDS SUBJECT TO FAIR VALUE HEDGING
500
Fair value hedge
500
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345
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
The breakdown of the bond-rate by type of rate as at 31 December 2014 was as follows:
Debt breakdown before
ﬁxed-for-ﬂoating swaps
(€ million)
Impact of ﬁxed-forﬂoating transactions
Debt breakdown after
ﬁxed-for-ﬂoating swaps
Amount
%
Amount
Amount
%
5,995
100%
(2,615)
3,380
56%
2,615
2,615
44%
5,995
100%
Fixed-rate borrowings
Floating-rate borrowings
Of which borrowings covered by partial
or total rate-reﬁxing swaps (see note below)
984
TOTAL BORROWINGS
5,995
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.
100%
As at 31 December 2014, the portion of floating-rate
borrowings covered by these “rate refixing” swaps
amounted to €984 million, i.e. 16% of total borrowings.
These borrowings are still shown on the “Floating-rate
borrowings” line.
“Rate-refixing” swaps represent a nominal amount of
€840 million.
As at 31 December 2014, the breakdown of bond debt by currency was as follows:
(€ million)
Euro
Pound Sterling
TOTAL
Debt structure
before currency swaps
Impact
of currency swaps
5,714
96%
280
280
5%
(280)
5,995
100%
-
Debt structure
after currency swaps
5,995
100%
5,995
100%
Bonds denominated in foreign currencies are backed by swaps that allow the currency risk to be fully hedged.
346
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
27.4
20
Non-banking activities derivatives
Fair value as at 31/12/2014
(€ million)
Fair value as at 31/12/2013
Assets
Liabilities
Assets
Liabilities
350
15
362
27
350
37
362
69
37
412
Trading derivatives at fair value through proﬁt or loss
Fixed-for-ﬂoating derivatives
Floating-for-ﬁxed derivatives
Total
22
42
Hedging derivatives
Fair value hedges
TOTAL DERIVATIVES RELATING TO BONDS
38
388
50
69
Other
Currency swaps
6
Cash management funds derivatives
TOTAL NON-BANKING ACTIVITIES DERIVATIVES
13
388
50
16
419
85
Amortisable balance on interrupted hedging derivatives
Cash ﬂow hedging derivatives
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 2014.
8
10
Commercial paper
Commercial paper issued by La Poste and not matured as
at 31 December 2014 have maturities of three to six months
and represent €285 million (€150 million as at 31 December
2013).
Deposits and guarantees paid
This line primarily relates to security deposits received in
respect of financial instruments put in place to manage
bonds.
Registration document 2014
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347
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
NOTE 28 Net debt
28.1 Net debt position
28.2 Changes to net debt
28.1
Net debt position
(€ million)
Cash and cash equivalents (balance sheet line)
Note
31/12/2014
31/12/2013
23
1,389
2,104
Debt-related derivative assets
19
388
419
Investment securities with initial maturities of over 3 months
19
563
655
Security deposits paid in connection with derivatives, recognised as assets
19
Net ﬁnancial receivable against La Banque Postale
Cash and other asset items (1)
Medium- and long-term bonds and other ﬁnancial debt
27
Short-term bonds and other ﬁnancial debt
27
25
35
634
53
2,999
3,266
6,120
6,048
885
1,023
Gross debt (2)
7,005
7,071
NET DEBT (2)-(1)
4,005
3,805
Increase (Decrease) in net debt as at 31 December 2014
28.2
200
Changes to net debt
Crossreferences
(€ million)
2014
1,030
1,018
Cash ﬂows from investing activities
CFS
(794)
(1,391)
Cancellation of the change in cash management ﬁnancial assets
CFS
(86)
(157)
(880)
(1,548)
(171)
(171)
Cash ﬂows from operating activities
CFS
Cash ﬂow from investing activities excluding the acquisitions
and disposals of cash management ﬁnancial assets (b)
Capital increase
CFS
Dividends paid to the shareholders
Purchase of non-controlling interests
CFS
Net ﬁnancial interest expense
Change in the fair value of ﬁnancial instruments
Impact of changes in consolidation scope on gross debt
Increase in ﬁnance lease liabilities
Other items (c)
Cash ﬂows and change in debt from ﬁnancing activities
DECREASE (INCREASE) IN NET DEBT SINCE 1 JANUARY
600
(3)
(9)
(149)
(163)
(6)
(28)
(14)
(14)
(7)
(17)
0
(5)
(350)
193
(200)
(337)
Net debt at the beginning of the period
(3,805)
(3,468)
Net debt at the end of the period
(4,005)
(3,805)
(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.
348
2013
(a)
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LE GROUPE LA POSTE
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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
Provisions for employee beneﬁts have changed as follows during 2014:
31/12/2013
(€ million)
Post-employment beneﬁts for
La Poste’s state employees
Retirement beneﬁts for the
Group’s contract staff
Current
Increase
17
433
7
(12)
6
224
27
55
24
Pension plans for employees
of foreign subsidiaries
Post-employment beneﬁts
End-of-career arrangements
31/12/2014
Noncurrent
Decrease
for use Interest cost
Other
changes
Current
Noncurrent
14
51
17
493
(4)
5
55
8
306
2
(6)
3
11
712
36
(23)
22
116
19
64
25
863
382
775
423
(366)
387
846
Severance payments
81
32
3
(0)
86
29
Long-term sick leave/long-term
paid leave
61
45
1
(1)
61
46
114
101
20
123
110
2
21
2
18
Other beneﬁts
258
199
25
(9)
3
272
203
TOTAL
663
1,685
484
(397)
44
683
1,912
Accrued leave
Other long-term beneﬁts
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.
(4)
3
(3)
116
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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349
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
29.2.1 Pension commitments for state employees
at La Poste
Article 150 of the 2006 Amending Finance Act, published
in the Journal Ofﬁciel of 31 December 2006, stated that an
employer contribution is to be made in full discharge of
its obligation regarding the pensions of state employees
working at La Poste.
As a result, no provision is recorded in La Poste’s ﬁnancial
statements in respect of state employees’ retirement
beneﬁts.
29.2.2 Post-employment beneﬁts granted to retired
state employees attached to La Poste
Other commitments for post-employment beneﬁts include:
f employee welfare services provided to state employees,
primarily including home help and holiday vouchers;
The provisions relating to early end-of-career arrangement
plans recognised as at 31 December 2014 factor in the
expected enrolments to the plan available in 2015, as well
as enrolments to the plans operating previously.
29.2.6 Other long-term beneﬁts
These are paid leave schemes:
f 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;
f 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. The provision covers
these supplementary leave and travel rights;
f a loyalty bonus granted to retired state employees who
f long-term sick leave/long-term paid leave: the
hold their pension in a current account at La Banque
Postale;
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.
f granting assistance to voluntary organisations that
provide services to retired state employees.
29.2.3 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.
29.2.4 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.
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 2014
were as follows:
f likelihood of retaining working staff within the Group, life
expectancy and estimates of future salary increases;
f retirement age assumptions for employees of foreign
29.2.5 End-of-career arrangements
La Poste employees may beneﬁt, under certain conditions,
from early end-of-career arrangement plans. These
arrangements are offered to people who meet a minimumage requirement from 53 to 59 years of age and according to
certain conditions (position that is physically demanding or
not, active or ofﬁce roles, number of years of service, etc.).
During the term of the plan, the beneﬁciaries receive 70%
of a full time remuneration while working in an operational
activity for a smaller portion of the time.
350
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LE GROUPE LA POSTE
companies and employees governed by foreign collective
bargaining agreements, which take account of local
economic and demographic factors;
f an assumed average beneﬁt increase of 2% (no change
compared with 2013);
f 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 plans 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. An
increase of one point in the expected rate of enrolment
would have increased the provision by €25 million as at
31 December 2014;
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
f 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
Euro zone
0.6%
1.2%
1.5%
1.8%
UK zone
1.9%
2.4%
3.0%
3.2%
Euro zone
1.4%
2.5%
2.8%
3.1%
UK zone
2.3%
3.5%
3.9%
4.2%
2014
2013
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 2014 and 31 December 2013.
29.4.1 Change in commitments
(€ million)
Commitment at the beginning of the period
2014
2013
886
887
Cost of services provided
37
25
Discount unwinding costs
29
23
1
2
(23)
(26)
Change in consolidation scope
Curtailment and settlement of plans
Beneﬁts paid
Employee contributions
1
Actuarial (gain) loss relating to changes in assumptions (a)
144
(12)
Actuarial (gain) loss due to experience adjustments
(23)
(11)
Translation adjustments
COMMITMENT AT THE END OF THE PERIOD
14
(4)
1,066
886
(a) Mainly due to changes in the discount rate.
There was no change in the post-employment plans in 2014 and 2013.
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20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
29.4.2 Change in plan assets
2014
2013
150
141
Expected return on assets
6
5
Employer contributions
7
6
Employee contributions
1
1
(9)
(7)
(€ million)
Plan assets at the beginning of the period
Beneﬁts paid
Change in consolidation scope
2
Actuarial differences
12
Translation adjustments
PLAN ASSETS AT THE END OF THE PERIOD
4
11
(2)
178
150
The plan assets primarily relate to GeoPost UK’s pension commitments.
29.4.3 Net commitment
31/12/2014
31/12/2013
Commitments
1,066
886
Plan assets
(178)
(150)
888
736
863
712
25
24
2014
2013
80
110
144
(12)
Actuarial (gain) loss due to experience adjustments
(23)
(11)
Actuarial differences on plan assets
(12)
(4)
189
80
(€ million)
NET COMMITMENT
Of which non-current provision
Of which current provision
29.4.4 Change in actuarial differences (recognised in “Other comprehensive Income”)
(€ million)
Actuarial (gain) loss at the beginning of the period
Actuarial (gain) loss relating to changes in assumptions
(a)
Curtailment and settlement of plans
Other
(2)
ACTUARIAL (GAIN) LOSS AT THE END OF THE PERIOD
(a) Mainly due to changes in the discount rate.
352
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LE GROUPE LA POSTE
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
29.4.5 Breakdown of plan assets
31/12/2014
31/12/2013
Equities
17%
34%
Diversiﬁed investment funds
46%
32%
LDI (Liability-Driven Investment) funds
15%
10%
Insurance contracts
23%
24%
29.4.6 Discount rate sensitivity
A 50 basis point reduction in the discount rate would increase the Group’s net post-employment beneﬁt commitment by
around €80 million.
29.5
Analysis of post-employment beneﬁt expenses
2014
2013
Cost of services provided
37
25
Discount unwinding costs
29
23
Expected return on assets
(6)
(5)
60
43
(€ million)
Curtailment and settlement of plans
EXPENSE (INCOME) FOR THE PERIOD
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 correspond to Group cash outﬂows, except
for the GeoPost UK and DPD Schweiz pension plans, which
are covered by an asset fund (benefits of approximately
€9 million paid per year).
Beneﬁts paid
2015
32
2016
29
2017
30
2018
30
2019
30
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353
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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
31/12/2014
31/12/2013
262
82
24
29
286
110
13,343
12,080
1,527
2,567
Term liabilities to credit institutions
14,870
14,647
TOTAL
15,157
14,757
(€ million)
Ordinary accounts payable
Other amounts due
Sight liabilities to credit institutions
Securities given under repurchase agreements
Term deposits and loans
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
354
Maturity
of 1 to 5 years
(€ million)
2014
2013
Sight liabilities to credit institutions
286
110
2014
2013
Maturity
of > 5 years
2014
Total
2013
2014
2013
286
110
Term liabilities to credit institutions
13,704
12,194
965
2,084
202
369
14,870
14,647
TOTAL
13,990
12,304
965
2,084
202
369
15,157
14,757
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LE GROUPE LA POSTE
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
30.2
20
Liabilities to customers
This item primarily represents deposits by customers of the Banking activities plus accrued interest not due on these deposits.
31/12/2014
31/12/2013
Livret A passbook savings accounts
62,696
64,314
Home Loan Savings Plans (PEL)
23,055
21,287
5,157
5,699
289
340
LEP savings accounts
8,095
8,681
Sustainable Development (LDD) accounts
7,326
7,191
703
753
2,008
2,514
(€ million)
Home Loan Savings Accounts (CEL)
PEP accounts
Youth passbook savings accounts
Livret B (savings passbook) accounts
Stock Savings Plan Liquidity Accounts
464
404
3,180
2,684
112,974
113,866
50,041
47,670
1
1
563
231
Other special accounts
Special savings accounts
Ordinary trade payables
Customer borrowings
Other amounts due to customers
Sight liabilities to customers
50,604
47,901
Customer borrowings
216
259
Term deposits
422
548
Equities and securities given under repurchase agreements
3,035
4,008
Term liabilities to customers
3,672
4,815
167,251
166,583
TOTAL
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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355
20
30.3
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
Debt evidenced by a certiﬁcate and other banking ﬁnancial liabilities
31/12/2014
(€ million)
31/12/2013
Subordinated debt
1,658
829
Bonds
3,620
1,536
Certiﬁcates of deposit
5,770
2,763
11,048
5,129
1,591
478
332
118
Debt evidenced by a certiﬁcate
Guarantee deposits received
Financial liabilities at fair value through proﬁt or loss
Hedging derivatives
432
372
1,739
705
15,143
6,801
Other ﬁnancial liabilities
TOTAL
The “ﬁnancial liabilities at fair value through proﬁt or loss” primarily correspond to interest rate derivatives.
The maturity schedule for debt evidenced by a certiﬁcate is as follows:
Maturity
of < 1 year
(€ million)
Debt evidenced by a certiﬁcate
Maturity
of 1 to 5 years
Maturity
of > 5 years
Total
2014
2013
2014
2013
2014
2013
2014
2013
6,044
2,999
872
150
4,132
1,980
11,048
5,129
NOTE 31 Trade and other payables
31/12/2014
31/12/2013
Trade payables and related accounts
1,391
1,421
Tax and social security liabilities
(€ million)
1,868
1,822
Payable to suppliers of non-current assets
230
240
International mail payables
468
489
Customer advances and deposits
184
212
Other operating payables
179
172
4,321
4,357
TOTAL
356
Registration document 2014
LE GROUPE LA POSTE
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
20
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.
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.
An execution report for the Limits Handbook is also
presented to La Poste’s Audit Committee every year.
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 Credit Default Swaps
for each of the issuers in its portfolio, weighted with the
investment’s current amount and residual maturity.
32.1
32.2
Credit risk
In the course of its non-banking ﬁnancial activities, La Poste
is primarily exposed to two types of credit risk:
f the risk of its issuers defaulting on their investment
securities;
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.
f the risk of its market counterparties defaulting.
Any liquidity gaps are refinanced through the issue of
French commercial paper or Euro Commercial Paper (ECP).
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.
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 36.4.2).
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.
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).
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.
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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.
2015 ﬂows
As at 31/12/2014
(€ million)
Balance
sheet amount
Interest
Bonds
5,995
Borrowings at amortised cost
Borrowings at fair value
Principal
Interest
Principal
Interest
Principal
245
245
757
533
1,900
397
3,000
3,380
135
135
388
960
296
2,420
2,096
86
86
257
145
940
101
580
Borrowings subject
to fair value hedging
518
24
24
500
Other ﬁnancial debt
832
731
21
55
26
Finance leases
57
12
9
11
26
La Poste savings bonds
61
61
285
285
Current bank facilities
Deposits and guarantees received
Other borrowings at amortised cost
Derivatives
Derivative liabilities
Derivative assets
TOTAL
32.3
13
13
379
353
6
20
37
7
6
24
(338)
(81)
(99)
35
(134)
50
7
(7)
35
1
(388)
(88)
(92)
6,488
164
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.
Registration document 2014
Principal
2020 ﬂows
and beyond
Interest
Commercial paper
358
2017-2019
ﬂows
2016 ﬂows
LE GROUPE LA POSTE
731
146
(79)
(135)
813
399
(79)
1,955
318
3,026
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 €6.8 million increase in the
Group’s annual ﬁnancial expense, after taking into account
debt management derivatives (compared with €5.9 million
as at 31 December 2013).
A uniform sudden 50-basis point increase in the market
yield curve would result in a €4.4 million proﬁt in income
(compared with €3.2 million as at 31 December 2013),
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.
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
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.
20
As at 31 December 2014, there were no signiﬁcant foreign
currency-denominated investment securities. Some bonds
are denominated in pounds sterling. 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 Structural risk factors
33.2 La Banque Postale’s risk exposure
33.3 Credit risk
33.4 Liquidity risk
33.5 Interest-rate risk
33.6 Market risk
33.1
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.
33.2
La Banque Postale’s risk exposure
(€ million)
31/12/2014
31/12/2013
9,376
5,253
297
128
Financial assets at fair value through proﬁt or loss
Trading derivatives
Hedging derivatives
1,532
221
Available-for-sale ﬁnancial assets
13,102
12,793
Loans and receivables – Credit institutions
83,315
82,894
Customer loans and receivables
67,857
59,212
Financial assets held to maturity
28,297
32,266
203,776
192,767
Financing commitments given
17,948
20,501
Guarantee commitments given
3,436
3,690
21,384
24,191
225,160
216,958
Balance sheet exposure net of impairment
Off-balance sheet exposure
TOTAL NET EXPOSURE
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359
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Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
The following risks are described below:
33.3 Credit risk
33.4 Liquidity risk
33.5 Interest-rate risk
33.6 Market risk
33.3
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
Regulation (EU) No. 575/2013 of the European Parliament
and of the Council.
33.3.1 Credit risk on transactions with retail
customers
In terms of retail customer lending, La Banque Postale
group activities that give rise to a credit risk include:
f home loans to individuals and SCI property investment
companies (La Banque Postale and its subsidiaries BPE
and SOFIAP);
f overdrafts and means of payment extended to individuals
(La Banque Postale and its subsidiary BPE);
f consumer loans (La Banque Postale Financement, BPE,
as well as La Banque Postale for previous loans granted
to Le Groupe La Poste staff);
f personal micro-loans (La Banque Postale).
Where management of inherent risk is concerned, the
Group 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 duties , the Group Risk
Department has the credit risk “game plan” approved by
the Group Risk Committee (chaired by a member of the
Executive Board), or by the Executive Board, if requested by
the Chairman of the Group Risk Committee.
After they are approved, the Group Retail Risk Department
makes sure these rules are implemented and correctly
applied during all the lending process.
As part of the credit risk organisation deployment, the Risk
Managers of BPE and LBPF have reported to the Group Risk
Manager since January 2015 and July 2014 respectively.
In accordance with regulations, the Retail Credit Risk
Department ensures that the risks surveillance and
monitoring rules are implemented and it coordinates all
the control mechanisms involved.
A follow-up is performed at Group Risk Committee level,
with speciﬁc follow-ups on each subsidiary.
La Banque Postale’s loan guarantee system
Risk management
General principle
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 for the Group, i.e. La Banque
Postale SA, La Banque Postale Financement, BPE and
SOFIAP.
The general principle is that any ﬁnancing must be 100%
hedged by an “eligible” guarantee, i.e. offering a sufﬁcient
hedging level:
It amends the rules for granting and committing to loans.
360
The Group Retail Risk Department runs La Banque
Postale’s Group Retail Customers’ Lending Committee,
which is the highest delegating body within the La Banque
Postale group for granting retail loans.
Registration document 2014
LE GROUPE LA POSTE
f 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;
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolidated ﬁnancial statements
f pledge of ﬁnancial products (life insurance contracts,
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.
securities accounts, REIT units), in accordance with
the hedging ratio of the loan by the pledged savings, as
speciﬁed in the issuance conditions, depending on the
nature of the pledged assets (securities, bonds, currency,
etc.);
f guarantees provided by a guarantee body, authorised by
If the quality of the application ﬁle justiﬁes it, the bank can
accept an unsecured loan on the condition that all of the
unsecured loans granted to the same customer do not
exceed the ceiling set in the issue conditions.
the Guarantee Providers Referencing Committee of La
Banque Postale.
By exception to the above principles
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.
Some low amount home improvement loans are granted
without a guarantee.
Exposure to credit risk on transactions with retail customers
2014
Gross book value
as at 31/12/2014
(€ million)
Home loans
Consumer loans
Ordinary accounts receivable
TOTAL
Gross off-balance sheet
amount as at 31/12/2014
Total exposure
as at 31/12/2014
Amounts
outstanding
As a % of total
exposure
Amounts
outstanding
As a % of total
exposure
Amounts
outstanding
% total
53,631
96%
2,389
4%
56,020
81%
4,043
88%
529
12%
4,572
6%
724
8%
8,108
92%
8,832
13%
58,397
84%
11,027
16%
69,424
100%
2013
Gross book value
as at 31/12/2013
(€ million)
Home loans
Consumer loans
Ordinary accounts receivable
TOTAL
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
49,985
96%
2,280
4%
52,265
76%
3,404
92%
310
8%
3,714
5%
687
5%
12,069
95%
12,756
19%
54,076
79%
14,659
21%
68,735
100%
The exposure position was relatively stable compared with the previous ﬁnancial year.
The relative value of the “home loans” exposure increases at 81%. Conversely, La Banque Postale Financement’s consumer
loans business continued its expansion, and rose from 5% to 7% of total exposure, whereas the exposure of ordinary accounts
receivable decreased by six points.
Registration document 2014
LE GROUPE LA POSTE
361
20
Financial information regarding the assets and liabilities,
ﬁnancial position and results of the issuer
Consolid