Annual Report
- Highlights of the 2007 Annual Report

Canada Post Group of Companies:

• Consolidated revenue from operations reached $7,500 million, an increase of $210 million, or 2.5% from the comparative period.



• Consolidated net income for the fiscal period ended December 31, 2007 was $54 million, a decrease of $65 million from 2006.



• Consolidated net income before taxes was $160 million, a decrease of $6 million from the comparative period.



• Consolidated cost of operations for fiscal 2007 totalled $7,346 million, an increase of $230 million or 3.2% over the $7,116 million recorded in the prior year.



• Revenues from Transaction Mail totalled $3,209 million; Parcels revenues totalled $2,736 million; Direct Marketing revenues were $1,404 million.



• Return on equity ratio was 3.8%, down from 8.4% in 2006.



• Canada Post Corporation processed 11.8 billion pieces in 2007.



• 72,000 employees the Canada Post Group is one of the largest employers in Canada.

Segmented Highlights:

Canada Post

• Canada Post was named as one of the Top 100 Employers in Canada for a second year in a row in Maclean’s magazine.



• Canadians have ranked Canada Post as the most trusted federal institution.



• The Canada Post segment represents 79.4% of the corporation’s consolidated revenue.



• Canada Post's revenue from operations increased 1.7%, from $5,831 million in 2006 to $5,955 million, in 2007.



• Canada Post's income before tax was $78 million for 2007, a decrease of $21 million from the comparative period.



• As a result of its financial performance last year, Canada Post declared and will pay a dividend of approximately $22 million to the Government of Canada in 2008. A $48 million dividend was paid to the shareholder in 2007.



• Lettermail on-time service performance score, at 96.4%, topped the corporate target of 96%.



• Transaction mail volumes decreased by 1.6% in 2007.



• The cost of salaries increased $132 million, or 4.3%, to reach $3,221 million in 2007.



• Employee benefit costs decreased by $42 million, or 4.7%, to reach $843 million in 2007.
  
  

Purolator

• Purolator generated net operating revenue of $1,448 million in 2007, an increase of $101 million over the $1,347 million achieved in 2006.

Logistics

• The Logistics segment includes the financial results of SCI Logistics and Intelcom. The 2007 financial results improved by $12 million when compared to the previous year.

All Other Segment

• The All Other Segment includes the financial results of Innovapost and CPIL which generated $175 million in revenue, a decline of $2 million from 2006.