The Canada Post Group:

• Canada Post recorded its 15^th consecutive year of profitability despite sustaining one of the most challenging years in its history.
• The profit was due to two factors: an unplanned, non-cash reduction in employee future benefits expense, and stringent cost cutting efforts across the Corporation.
• Volumes in the core Canada Post segment dropped by almost 8% in 2009, wiping out close to five years of growth.
• Volumes in our transaction mail business continue to decline: transaction mail volume per address declined for the fourth straight year, and the rate of decline also increased for the fourth straight year.
• Consolidated revenue from operations reached $7,312 million, a decrease of $421 million, or 5.1% from 2008.
• Consolidated cost of operations for fiscal 2009 totalled $6, 955 million, a decrease of $639 million from the $7,594 million recorded in the previous year.
• Consolidated net income for the fiscal period ended December 31, 2009 was $281 million, an increase of $191 million from the previous year. This performance reflects the cost containment measures and the unplanned non-cash reduction in employee future benefits expense for the Canada Post segment.
• The Canada Post Group delivered approximately 11 billion pieces of mail to 15 million residential and business addresses.
• With approximately 71, 000 employees, The Canada Post Group is one of the largest employers in Canada.
• The Canada Post Group spends approximately $3 billion annually on goods and services, thereby supporting an additional 30,000 jobs in the Canadian economy.

Segmented Highlights

Canada Post

• Canada Post's revenue from operations decreased from $6.1 billion in 2008 to $5.8 billion in 2009, a decrease of $268 million.
• Volumes declined in all three lines of business: (4.2)% in Transaction Mail, (6.9)% in Parcels and (10.9)% in Direct Marketing
• Revenues totalled $3.1 billion in Transaction Mail (down $86 million from 2008), $1.3 billion in Parcels (down $43 million) and $1.3 billion in Direct Marketing (down $123 million).
• Canada Post's income before taxes was $319 million for 2009, an increase of $253 million from the previous year. The negative pressure on revenue growth was mitigated by cost containment and operational efficiencies along with an unplanned non-cash reduction in employee future benefits expense.
• Canada Post did not pay a dividend to the Government of Canada in 2009 due to the company’s financial challenges and the need for significant capital reinvestment to modernize the postal system.
• On-time service performance exceeded corporate targets in all three lines of business.
• The number of lost-time workplace accidents fell by 22 per cent from 2008 and the company reported its highest ever employee engagement score.
• Canada Post was named as one of the Top 100 Employers in Canada for a fourth consecutive year in Maclean’s magazine. Canada Post was also named the Most Iconic Brand in Canada in a survey by Brand Finance Canada.
• In 2009 Canada Post raised $1.6 million for mental health, the company’s cause of choice, and distributed $1 million to community organizations across the country raised in 2008. The Corporation also supported literacy, the Canada Post Canadian Freestyle Ski team and the United Way.

Purolator

• Revenue in the Purolator segment decreased by 8.2 per cent from 2008 levels and contributed $53 million to consolidated income before taxes, a decrease of 42 per cent from 2008.

Logistics

• The Logistics segment reported revenue of $151 million, a decrease of $5 million from the previous year.