New Zealand Post Statement Of Corporate Intent

New Zealand Post’s Statement of Corporate Intent (SCI) for the three-year period from
1 July 2001 to 30 June 2004 was tabled this afternoon in Parliament.

The SCI is prepared annually in accordance with Section 14 of the State-Owned Enterprises Act 1986 and details the company’s strategic direction and financial performance targets for the next three years.

Chief Executive Elmar Toime said the SCI included, for the first time, the successful implementation of a retail bank as a key commercial objective for New Zealand Post.

“This is a further step in the process of the bank’s commercial development that we formally began back in 1996 and have worked on in detail since 1999.

“In time, the bank will add significant value to New Zealand Post. As was discussed at the announcement of Shareholder approval in February, it is not expected to return profits during its start-up phase in the first few years.

“While this is reflected in lower performance targets (the ratio of net-profit after tax to Shareholders funds and the ratio of earnings before interest and tax to total tangible assets) for New Zealand Post than those in last year’s SCI, the company remains comfortably profitable through the three-year period.”

Mr Toime said this year’s SCI provided more detail on New Zealand Post’s strategic objectives and the scope of its business than those of previous years.

“Seven years after it was conceived, the company’s business purpose ‘people reaching people through New Zealand Post for messages, goods and payments’ remains relevant, even in an environment of increasing electronic messaging.

“Communities throughout New Zealand continue to access our wide range of services through the post, Post Shops or electronically as we continue to develop strategies to support our purpose and build long-term Shareholder value.

“New Zealand Post is not only committed to providing world-class mail services to New Zealanders, we are providing services to customers operating in the trans-Tasman marketplace, and selling our expertise around the world.

“New Zealand Post is also developing new capabilities to meet the demand from our customers for electronic products and services related to physical delivery and messaging.”

ENDS

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