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In order for Swiss Post AG to continue financing basic services on its own, it must significantly adapt its business model. This is the goal of the corporate strategy for the years 2021-2024. Given the far-reaching implications of this strategy, the UVEK and the EFD, as the responsible departments, gained an in-depth insight into the status of its implementation. They came to a positive conclusion.
(Bern) Every year, the number of letters transported decreases, and fewer and fewer customers make their payments at a post office. This shrinkage of the traditional postal business increasingly complicates the Post’s ability to finance basic services independently, as required by law. Therefore, the corporate strategy for the years 2021-2024 provides for the Post to grow significantly in other business areas to compensate for the decline in postal operations. The success of this transformation process is crucial for the future viability of the Post.
The two departments, UVEK and EFD, which represent the federal ownership role towards the Post, are aware of the significance of this transformation process. They have therefore tasked the Post’s Board of Directors with conducting a status assessment at the halfway point of the strategy period. In March 2023, the Post’s Board of Directors presented a report to the UVEK and the EFD on the status of the implementation of the corporate strategy 2021-2024. The UVEK and the EFD subjected this report to a plausibility check.
Tight Risk Management Established
The overall finding of this review is positive. The Post is on a good path to achieving the goals of the corporate strategy 2021-2024. It is conducting the transformation process professionally and has established a systematic, tight risk management framework. Credible, predefined exit plans are in place in case certain sub-goals of the strategy become unrealistic. Although the long-term growth targets of the Post are ambitious, they are certainly achievable. The greatest uncertainties lie in the business area of “Communication Services,” where innovative digital services are being developed. This is not surprising given the unique nature of this market. However, the risks appear to be relatively manageable.
In line with their ownership role, the UVEK and the EFD have only addressed the business aspects of the Post’s strategy. Legal questions – for example, to what extent the Post operates within legal limits during specific company acquisitions – were not part of the review. In this context, legal proceedings are pending.
Next Steps to Be Presented This Year
Regarding the future of basic postal and payment services, the UVEK and the EFD will present a report to the Federal Council later this year, containing the results of the in-depth investigations and proposals for further action.
Photo: © Swiss Post
