SHARE CAPITAL
Post Danmark’s share capital is DKK 500 million, corresponding to 25 million shares of DKK 20 each. Each share carries one vote. The shares are unlisted.
The largest shareholders in Post Danmark A/S are:
The Danish State 75.0 per cent CVC Capital Partners 22.0 per cent
Of the remaining 3 per cent, 2.4 per cent were sold on favourable terms to approx. 11,000 em- ployees. 0.5 per cent is included in a manage- ment incentive programme and the rest is made up of own portfolio. The programme comprises partly the sale of shares in 2006 and partly the granting of share options. Sales in 2006 were made at market price. The options can be exer- cised at the same price from 31 March 2009 to 31 March 2011.
In connection with the sale of employee shares, Post Danmark has committed itself to repur- chasing shares purchased by employees. The price at which the shares can be resold to Post Danmark is usually fixed once a year by Post Danmark’s financial adviser, based on Post Dan- mark’s profit performance and developments in the Danish share market. In case of any extraor- dinary events during a year such as a new large sale of shares or significant changes in Post Danmark’s financial performance, the price will be changed to reflect the new value.
This price fixing model reflects the fact that Post Danmark is not subject to regular valuations as it would be if the company were listed on the stock exchange.
DIVIDEND
It is Post Danmark’s policy to pay dividend at the rate of 75 per cent of profit after tax provided that Post Danmark’s solvency ratio does not drop below 30 per cent.
In the year under review, dividend paid for 2005 amounted to DKK 550 million.
The Board of Directors recommends to the general meeting that a total dividend of DKK 669 million be paid for the financial year 2006, equal to a dividend of DKK 26.75 per share.
ANNOUNCEMENTS TO THE DANISH COMMERCE AND COMPANIES AGENCY IN 2006
17 January Closing of agreement concern- ing the Belgian De Post – La Poste
9 March Announcement of financial statements
14 March Notice of annual general meeting 18 April Minutes of annual general meet-
ing
23 May Announcement of financial statements for the first quarter of 2006
29 May Post Danmark and 365 Media Scandinavia on the offensive in a new market
24 August Announcement of financial statements for the first half of 2006
12 October Post Danmark negotiating a bid for Transportgruppen
16 November Announcement of financial statements for the first nine months of 2006
FINANCIAL CALENDAR 2007
Annual general meeting on 16 April 2007.
Expected publication of announcements of financial statements:
Annual Report 2006 14 March First quarter 2007 25 May First half 2007 27 August First nine months 2007 22 November
INCOME STATEMENT
The consolidated financial statements consoli- date the financial statements of Post Danmark A/S and its wholly-owned subsidiaries Post Danmark Leasing A/S, Budstikken Transport A/S and Data Scanning A/S.
Profit after tax was DKK 892 million, which is satisfactory. The profit, equivalent to a return on equity of 34 per cent, is in line with the expectations as expressed in the Announcement of Financial Statements for the Third Quarter of 2006. The profit after tax for 2005 was DKK 738 million.
Total income was DKK 11,718 million, an im- provement of DKK 256 million compared with 2005, driven mainly by growth within parcels, letters, newspapers, magazines and periodicals, unaddressed mail and magazine mail.
Total expenses, inclusive of amortisation and depreciation charges, went up by DKK 315 million from DKK 10,338 million in 2005 to DKK 10,653 million in 2006. Staff costs and external operating expenses rose as a result of growing revenue, and the rise in amortisation and depreciation charges was caused by major investments in recent years.
Operating profit (EBIT) was DKK 1,065 million, 5 per cent lower than in 2005.
The result of net financials including associates and joint ventures was a profit of DKK 122 mil- lion against a loss of DKK (91) million the year before, reflecting in particular the positive effect of the investment in De Post – La Poste.
The main items of the financial statements are analysed below.
REVENUE
Total revenue grew slightly in 2006. Within the largest business area, letters, moderate growth was recorded in revenue, while volume was de- clining compared with 2005. The business post segment continued to be mostly affected by the fall in volume due to electronic substitution and a changed pattern of distribution among several major customers.
Parcels revenue and volume showed comfort- able growth. Thus, revenue went up by 7 per cent and volume by 5 per cent. This perform- ance should be seen in the light of the strong position held by Post Danmark in the parcels market. In addition, considerable growth was recorded in revenue from Post Danmark’s sub- sidiary, Budstikken Transport A/S.
In 2006, newspapers, magazines and peri- odicals as well as magazine mail showed a minor increase in both revenue and volume. The increase was attributable to, among other things, strong growth in magazine mail, driven
by a changed pattern of distribution in respect of catalogues from abroad.
Unaddressed mail recorded sound growth in both revenue and volume in a market subject to very strong competition.
OTHER OPERATING INCOME
Other operating income, which includes rental income, a net gain on sales of non-current as- sets and other income, totalled DKK 70 million in 2006, at level with 2005 (DKK 69 million).
EXTERNAL OPERATING EXPENSES
External operating expenses were DKK 3,342 million, up DKK 209 million on 2005.
The growth in expenses reflects increasing capacity costs but also higher expenses in rela- tion to international settlements as a result of growing volumes of outbound international mail. In addition, transport expenses rose during the year.
STAFF COSTS
Staff costs amounted to DKK 6,723 million in 2006 against DKK 6,645 million in 2005, up DKK 78 million, or 1 per cent. The low increase should, among other things, be seen in the light of extraordinary expenses in relation to an employee share programme the year before, which entailed payroll costs of DKK 90 million. In addition, the increase was attributable to