annual report

pota romn

compania naional

presidents forward historical reference dates board of directors and members of the council of administration organization chart infrastructure specialized branches financial indicators operational activity innovation and development human resources commercial activity quality of postal services international relations events of 2007 perspectives for 2008

2 6 8 10 14 16 20 24 30 34 36 46 50 54 58

annual report 2007

president`s
forward

In this respect, all the actions of the Company were aimed at modernizing and developing through coherent strategies that can ensure performance within a strong competitive environment. The liberalization of postal services at European level will be a major test in the existence of the Romanian Post, which will have to honour its respectable historical blazon of the symbol-institution of Romania. The future existence of the company will be ensured only by a correct and just implementation of the managerial policies at all the decision levels. The existing organizational culture will have to be developed, reflected by a permanent training of the employees and by creating optim al conditions for work performance, which are indispensable to obtain institutional efficiency and effectiveness. Thus, the training programmes related to various fields necessary for professional and personal development were continued and developed. Symbolically reminding of the similar historic destiny of Romania and Romanian Post, the head office of the company moved into a new building, exactly in the year of the integration into E.U. Disposing of a modern head office, worthy of the future image of the Romanian Post, those more than 520 employees who develop their activity in this building have all the conditions for achieving professional performance. Although the document submitted is synthesized by specific fields, I would like to succinctly remind you several achievements that marked the activity of the Romanian Post in 2007. There were very important moments for the future of the Romanian Post, projects denoting managerial decisions and developments cycles that began to give results being initiated or under progress :

The Romanian Post was taken out from the list of companies monitored by the Government. The decision made by the Romanian Government in February confirms the correct managerial policy of the Company, as it registered significant profit increases during the period 2005-2006. The Romanian Post and the European Bank for Reconstruction and Development signed a support agreement for the modernization of postal services in Romania. The Romanian Post benefits from a loan of 50 million euro for financing the construction in Bucharest of the countrys first automated sorting centre and for the modernization of the centre in Cluj. Through its postal services, the Romanian Post supports the national healthcare evaluation programme in primary-medical assistance, starting from 4 July. Postal items including secured coupon and newsletter are distributed through 15 000 postmen .

The Romanian Post continued to extend the range of postal and non-postal services offered to its clients. The Romanian Post remained consistent to its social responsibility, being actively involved within the community where it performs its activity. It initiated and supported projects resulted from various partnerships, reflecting the extension of the activities adjacent to postal services. From the multitude of developed projects, I would like to mention fields such as: scientific - technological, cultural - educational, sports, social - humanitarian. The financial results in 2007 were not those predicted, due to the arbitral reduction of the commission collected by the Romanian Post from the distribution of pensions, modification which meant significant losses for the Company. At the end I would like to refer to the report of the National Regulatory Authority for Communications and Information Technology, which confirm the position of the Romanian Post as incontestable leader on the market of postal services, as well as the positive financial results guaranteed by the audit company Deloitte&Touche, which makes us credible at international level.

Dan Mihai Toader

President of the Board of Directors
General Director of the Romanian Post

historical

reference dates

historical
reference dates

1399 Document issued by ruler Mircea cel Batran

The first document regarding the existence of postal services i n Romania appears in Giurgiu.

1858 Bull head

Postal stamps are introduced on Moldovas territory, four values of the first issue being manually printed, piece by piece.

1864 Establishment of modern post

The ruler Alexandru Ioan Cuza put together the postal service and the telegraph service, and in 1893 the telephone service was added.

1865 The telegraph-post law

The first law on the organization of the communication sector.

1874 Universal Postal Union (UPU)

The first Postal Congress takes place in Bern during which the Universal Postal Union is created, Romania being one of the 22 founding members of the organization.

1991 Romanian Post Autonomous Company

The Romanian Post Autonomous Company was established in June, by Government Decision no. 448/27, and thus postal services became financially autonomous .

1992 Regionalization Programme

The first step toward decentralization was based on four principles: organizational structure, quality, economic and international.

27 June1996 Postal services law

Romanian Post becomes national public operator.

1998 Posta Romana SA

Autonomous Company Romanian Post was transformed in joint stock company, status which is currently in force.

2004 The designation as universal service provider

The Romanian Post was appointed, for a 5 year period, provider of universal service in the field of postal services.

members of the council of administration

board of directors and

board of directors
and members of the council of administration

board of directors
General Director Executive Director for Strategic Development Executive Commercial Director Executive Operational Director Executive Economic Director International Cooperation Director Human Resources Director Administrative Director Dan Mihai Toader Andrei Marinescu Mihaela Lidia Heksch Mihai Cristian Buciu Emanoil Lepdatu Gabriel Mateescu Marian Stelian Lazr Marian Enache

members of the council of administration

President Members Dan Mihai Toader Szabolcs Olosz Victor Pnzaru Nicolae Stoina Ionu Negrescu Vasile Florea Mihai Hura Grigore Barna Monica Gndcioiu Carmen Mihaela Dne Mariana Neculescu Maria Popescu Adrian Ionescu Liliana Crstea Ioana Drng

Censors Representative of the General Shareholders Meeting FSPC Representative Secretariat of the Council of administration

organization chart

organization chart

board of advisers

financial management control service

legal department

general director

service for ensuring postal communication continuity

internal audit service

prevention and protection service

postal security and protection of classified information service

public relations department

10

department for information and communication technology investment department supply department express service division* mailing house*

strategic development division

executive director for strategic development

postal services department

operational division
executive operational director

methodology and working norms department programming and optimizing department international traffic department sales department

commercial division
executive commercial director
marketing department stamp factory* chief accountant department

economic division
executive economic director

financial - treasury department economic analyses department financial services division*

international cooperation division

international coopeeration director

international relations department international bodies department

human resources evidence department organizational management department human resources management department

human resources division

human resources director

administrative department technical department

administrative division
administrative director

philatelic national museum*

general inspector control department quality management department management team

control, quality and projects division

control, quality and projects director

*Specialized branches methodologically coordinated

11

12

infrastructure

infrastructure

Having the largest retail network in the country in the field of postal services through its more than 7 000 locations, Romanian Post is found in all the 10 regions of the country (through Regional Postal Division) and in all the 41 counties (through County Structures).

Urban postal offices Rural postal offices Express service offices Other postal subunits Total

841 604 42 5 632 7 119

DRP

VPN subunits
103 75 60 95 92 97 43 69 46 53 43 1

DialUP subunits
11 55 36 39 45 66 28 25 15 29

POS subunits
128 231 300 102 99 153 208 489 60 64

Bucharesti Ploieti Craiova Timioara Cluj-Napoca Braov Bacu Iai Galai Constana Express Post Mailing House D.S.F TOTAL

1 777 349 1 834

14

specialized
branches

specialized
branches

express service division

Express Services Division is the express services specialized branch of the Romanian Post, benefiting from a wide network of work points throughout the territory, car park and ownstaff. Established as result of the development of diversified and intensified business relations between economic agents, the Express Services Directorate offers, through its services an alternative to the other similar services, oper ating on internal and external market, ensuring not only efficient services, but also a price policy adapted to the current economy. The resources of this branch facilitate the sending, respectively, receiving letter-mails within time limits appreciated by clients, as well as by its competitors .

stamp factory
Stamp Factory is an old printing house, established in 1872, currently producing a wide range of high quality products, combining all printing types of: offset, deep printing, retrogravure. The printing house is mainly specialized on making special regime products, stamps, postal effects, stocks, banking certificates, cheques, diplomas and tickets for sport or cultural actions etc. In 2004 the procurement of Heidelberg latest generation installation and equipment started Completely assisted by computer, the new printing process will ensure special rapidity (15 000 sheets/hour) and high quality. It will allow the programming, standardization and maintenance within the same parameters, in case of repeatable orders (labels, postal stamps, fiscal stamps, printed matters etc.), substantially saving the working time. Adding to all these, the high quality computers from DTP (Desktop Publishing) and Prepress, fully automated installations for film making and aluminum plates necessary for printing, the Stamp Factory will return to the top of high performance printing house in Romania.

mailing house
Mailing House is the specialized branch of Romanian Post providing integrated services of direct marketing, postal sales and press delivery. The actions taken by this branch in 2007 focused especially on increasing the client portfolio, establishing accessible tariffs for big clients, getting closer to partners by finding the most convenient solutions to applications, for making advertising campaigns, developing relations with competitors aiming at increasing the number of users of direct marketing services, improving the quality of performed services and implicitly satisfying the service consumer.

financial services division

Financial Services Division, as component of the Romanian Post develops its activity in the filed of postal financial services: management of money order accounts and corresponding cash flow, international financial operations Eurogiro, Western Union, international money orders; it has the role of transit and control centre, both for classic financial services and services based on the new electronic technologies. The computerization of postal offices was also extended in 2007, which led to an increasing number of offices performing electronic financial services.

16

national philatelic museum

National Philatelic Museum was inaugurated at the beginning of October 2004, when the Congress of the Universal Postal Union took place in Bucharest. Some of those 11 million stamps, representing about 3 million philatelic series, out of which some are unique samples, are exposed in the 3 presentation rooms. The original steel moulds used for printing th e four values of the first Bull Head Moldova (1858) issue as well as samples, layouts, different stages of making stamps from 1872 until today are also exhibited here. Different postal objects dating from the second half of the XIX and first half of the XX century can also be admired, illustrating the evolution of Romanian Post during this period. Old pictures, printings and postal items, furniture from postal offices, postal carriages and value cases are exhibited. Among the representative items exposed one can see costumes of coachmen, a metal value case having the symbol of Moldova Principate dating from 1840, documents of UPU Congress in Vienna (1891), the postcard made of birch bark sent during th e Marasesti battle in the First World War, postal maps from 1849 and 1873 and a comprehensive bibliography (books, catalogues, articles etc) about the Romanian philatelic history, as well as diplomas and medals won by the Romanian Post throughout the years.

17

financial indicators

financial
indicators

1 000 000 800 000 600 000 400 000 200 000 0

2004

2005

2006

2007

20

The positioning of the gross profit obtained in 2007 below the level of 2006 by 13.7% was mainly the effect of legislative regulations, influencing the decrease of the turnover made by the Romanian Post. The most significant influence was caused by the provisions of G.O. 40/22.08.2007 regarding the rectification of the state social insurance budget for 2007, which reduced the commission collected by the Post Office for payment of BASS pensions from 1.3% to 0.7%, and at the same time the expenses for performing these services in 2007 being higher than in the previous year .

Indicators

2006 2007 2007/2006 (%) thousand lei thousand lei

852 831 20 808 805 3 43 26 211 973 238 859 409 450 352 564 1 074 132 1 055 866 18 266 1 036 720 1 030 264 6 456 37 412 25 602 126.0 126.9 90.3 128.2 127.9 187.1 86.3 96.4

Total income, of which: - Operation incomes - Financial incomes Total expenditures, of which: - Operation expenditures - Financial expenditures Gross result, of which - Operation

21

operational
activity

operational
activity

24

1. Considerations on the Romanian Post from the perspective of the accession to the European Union and the liberalization of postal market

Starting from 2007 the RPNC applies the REIMS agreement for the remuneration of the international postal traffic of letter-mails in its relations with the operators designated by the European Union. It includes a special transitory agreement (REIMS East), concluded to minimize the impact of passing from UPU tax system (based on a unique tax per kg) to REIMS system based on taxes combined by item and weight, formats and speed, as well as in the service quality. The REIMS agreement takes into consideration a terminal tax system based on real costs and quality. At present the Agreement is signed by 26 postal operators. The REIMS agreement stipulates, within level III, the signing parties obligation to ensure the access to internal tariffs. The direct access represents a preferential channel ensuring to the big clients, through the designated postal operators, the access to the range of internal products of the destination country. The elimination of customs supervision and related documentation for items received from countries integrated in E.U. Alignment of the identification documents, within the meaning of accepting the national identity document and the passport when releasing the postal items or (advantages for client: simplification of the identification procedure). Implementation of the provisions of Fiscal Code, within the meaning of providing postal tariffs exempted from VAT for postal services included in the universal service (advantages for client: reduced tariffs for the above mentioned service).

25

2. Important events in the operational field in 2007

Development of Collection-Emptying project aiming at improving the methods for collecting letter-mail items from post-boxes, in order to fulfill the quality objectives set up for priority traffic. Launch of the activity for transporting values and postal items on the territorial network in collaboration with Group 4 Securicor Company. Elaboration of the documentation for UPU financing of the projects regarding : -checking the collection of the post-boxes in Bucharest using RFID systems; -procurement of mobile postal offices; -endowment of several regional transit centers and transit points with postal equipment.

Re-updating the postal code database. Elaboration of the theme and terms of reference (phase I) regarding the construction of a regional automated transit centre in Bucharest and the automation of the regional transit centre in Cluj-Napoca. Signing of the first direct access contract with the postal administration in Switzerland. Request to the International Bureau within UPU and obtaining the partial financing from the Quality of Service Fund (QSF) for the project Measuring the internal and international traffic data and independent measuring of the quality of internal traffic, mainly aiming at: - determination of the real flow corresponding to internal and international letter-mail items according to the European standard EN 13850; - evaluation of compliance with the quality objectives imposed by ANRCTI Decisions no. 88/2004 and 153/2004 by an independent monitoring body, according to the norms provided by the European Standard EN 13850; - auditing the results of measuring the real flow and the results of the measuring necessary to evaluate the compliance with the quality objectives, by an independent audit body, respectively Research International Company for a 6 month period (November 2007 - April 2008); -evaluation of compliance with the quality objectives, made by S.C. IPSOS Interactive Services SRL Company, during the period November-December 2007 and in 2008.

3. Perspectives and projects in the operational field for 2008 and future directions taking into consideration the current condition of postal services market
Modification of the range of services of the Romanian Post (advantages for client: extension of the services area within the universal service at reduced tariffs, respectively exempted from VAT). Launch of the PT system (postage paid) for international traffic + re-conception of the franking modality in PT system (advantages for client: possibility to send international items in PT system, simplification of the procedure of giving the PT approval for corporate clients. Delivery to the clients residence/head office of the postal parcels weighting up to 500g Launch of EUROGIRO E.C.I. and EUROGIRO Ramburs (COD) services (advantages for client: possibility to send/receive money in shorter time ).

26

Extension of Translink application to all the computerized postal subunits for the performance of Western Union service (advantages for client: simplification of the procedure at the postal counter). Procurement of 200 laser printers for performing the Western Union service (Advantages for clients: reducing the waiting time at the counter ). Launch of the service for electronic submission and processing of return mail-letter items and parcels (advantages for client: simplification of the procedure at the postal office, on-line management of postal items) Extension of the collecting of the invoices issued by utility suppliers by using 5 000 POS terminals and extension of the postal subunit network endowed with such equipment. Start of the project regarding the sale of prepaid cards in collaboration with Advanced Payment Solutions (APS) company. Implementation of the projects financed by UPU: - checking the collection of post-boxes in Bucharest using RFID systems; - start of the project for procurement of mobile postal offices; - endowment the regional territorial centers (RTC) and transit point with equipment (transporting bands, trailers, interior trolleys etc.); - completion of the terms of reference regarding the Construction of a regional automated transit centre in Bucharest and the automation of the new building of the regional transit centre in ClujNapoca. Completion of the transport action for postal items on the territorial network in collaboration with Group 4 Securicor company. Separation from the International Exchange Office of the activity related to delivery-acceptance of postal items to/from air transporters and setting up an independent activity from the operator point of within an Air-Mail Unit, which can be transformed at any time into Air Platform, in order to comply with the quality norms imposed by legal provisions and to ensure reduced circulation time for postal items. Development of Direct ac cess service with private operators and attracting as much traffic as possible Launch of the Consignment service consisting in the transportation of grouped postal items, especially postal parcels, sent by one sender or more beneficiaries; distribution of individual items to the respective beneficiaries. Audit of the results of measuring the real flow and the results of the measuring necessary to evaluate the compliance with the quality objectives, by an independent body. Opening of postal offices in Spain in order for the Romanian citizens living in this country, which are already familiar to such postal services, to use the services of postal parcels and money transfer to Romania.

27

and development

innovation

innovation
and development

30

The total value of the investments made in 2007 was 74 007 022.10 LEI, of which:
1. Construction works: Modernizations and refurbishments of buildings simultaneously with the improvement of the working conditions for employees (air-conditioning, methane gas, thermal power stations, water branching etc). Construction and refurbishments of the new head office of the Romanian Post. 2. Construction of Bucharest - Otopeni Regional Transit Centre and technologization of Regional Transit Centre Cluj 3. Real estate procurements 4. Purchase of postal devices and equipment Quality, higher speed, viability and high efficiency are only few of the characteristics of the new equipment. The technologization of postal services at European standards will implicitly lead to attracting new clients and diversifying the range of services for the population.

Investment proposals for 2008 Replacement of own car fleet with modern vehicles leading to the shortening of the transport duration for postal items. Procurements of spaces for new postal offices. Modernization and arrangement of existing postal offices and bringing them to a higher endowment and functioning standard. Inclusion of as many offices as possible in to the computerized system. Construction, modernization and automation of Regional Transit Centers, in order to increase the capacity of processing the postal items. Improvement of the working conditions offered to the personnel.

31

human

resources

human
resources
We are perform.

aware of the importance of each employee

for the activity we

efforts to offer them as good working conditions as possible, a friendly environment where all of them feel like home because together we are a big family and only this way we can succeed.
This is the reason why we make all our
auxiliary

6% (2 042)
funcional

higher

5% 5% (1 753)
management primary

1% (485)

33%

operaional

medium

88% (31 521)

62%

Staff`s structure by the position held

urban

Staff`s structure by education level

women

69%

67%

rural

31%

men

33%

Staff`s structure by environment

Staff`s structure by gender

34

commercial activity

commercial activity

36

However, the segment of letter-mail items is still the most important market segment as volume, generating over 50 % of the total postal traffic in 2007. Due to the fact that letter-mail services are included in the reserved area, Romanian Post is still the dominant player on the postal market, attracting more than 90% of the total traffic of this segment.

1. Traditional services
Letter mail service
Letter-mails are written communications, printed or recorded on any type of material support, which are to be collected, sorted, transported and delivered to the address indicated by the sender on this support or on its cover, differently fro m the electronic way .

Printed matters
Books, newspapers, periodicals, catalogues, geographic maps, musical scores, copies on paper, Paperboard or other materials made through a typographic, mechanical procedure or through any other multiplication technique, which are generally informative and executed in several identical copies.

Parcels
Postal items of maxim 50 kg, other than letter-mails or printed matters imprimate.

37

Evolution of

letter mail

and service during the period 2006-2007

printed matters

350 000 300 000 250 000 200 000 150 000 100 000 50 000 0

- thousand lei -

2006

2007

Evolution of

postal parcels
- thousand lei -

30 000 29 000 28 000 27 000 26 000 25 000 0

2006

2007

38

2. Domestic express service

Prioripost
It is the service allowing the sending of documents and goods in the country through letters and parcels, and benefiting from priority in transport, processing and distribution along the entire route.

Insured Fixed Value Prioripost Service

Financial-accounting documents can be sent through this service. The service is addressed especially to business customers who can send balance sheets and other financial or fiscal documents.

Prioripost invoice service

This service ensures the picking-up, transport and distribution, through a rapid network, of fiscal invoices or Prioripost items accompanied by fiscal invoices, and the return to the sender of the inventory note signed when distributing the items.

Ultrapost
It is an internal express service involving a rapid system of processing, transport and distribution of postal items.

Evolution of

internal express

service

60 000 50 000 40 000 30 000 20 000 10 000 0

- thousand lei -

2006

2007

39

3. International express services

EMS
It consists in collecting, sending and distribution, within very short time limits, of documents and goods. These items are sent by pre-established transport means, which ensure rapidity and control during their delivery.

Skypak
It is an international express service, created through a partnership between Romanian Post and TNT Romania. The items are collected from the clients residences/head offices and delivered to the destination, upon a simple phone call request.

Evolution of

international express

service

during the period 2006-2007

4 800 4 600 4 400 4 200 4 000

- thousand lei -

2006

2007

40

4. Domestic financial services

Internal money order
It ensures, through all the postal subunits (postal office, postal counters, postal agencies or rural postmen), the delivery to destination of the money given by senders. There is no limit for the amounts to be sent by internal money orders.

Electronic money transfer

It ensures the quick transfer of unlimited amounts of money being supported by an information system. The electronic money order diminished the transfer time to less than 24 hours. The transmission, as well as the payment is performed all over the country, at any address. The amounts of money that can be sent by electronic money order are unlimited, and the money is paid directly to the beneficiarys residence, excepting the case when the beneficiary chooses Post Restante option.

On-line money transfer

It allows the internal money transfer only in few minutes, using a modern and safe information system. It is available for natural persons as well as for legal persons, the amounts sent in lei being unlimited. It requires a prior consent between sender and beneficiary because the beneficiary must know the following information to receive the money: postal office from where he must pick up the money, locality where the money was sent from and exact amount.

Evolution on

internal financial services

during the period 2006-2007

70 000 60 000 50 000 40 000 30 000 20 000 10 000 0

- thousand lei -

2006

2007

41

5. International financial services

International money order
It gives the clients the possibility to receive and send money from and to the countries that concluded bilateral agreements with Romanian Post. The maxim limit for a money order is established depending on the destination country.

Eurogiro
It makes available for its clients a modern and rapid system through which money transfers to/from abroad are made, being technically supported by an application dedicated to this activity, considerably diminishing the transfer time compared to the classic system of international money orders.

Western Union
Romanian Post, through Western Union, offers the quickest way to receive money from more than 190 countries. As additional service, Romanian Post exclusively offers the payment at the beneficiaries residence of the amount sent by the quick money transfer Western Union. The service of payment made at the beneficiaries residence covers the whole country and i t is available at the senders request.

Evolution of

international financial

services

during the period 2006-2007

16 000 12 000 8 000 4 000 0

- thousand lei -

2006

2007

42

6. Direct Mail and Drop Mail services

Infadres (Direct Mail)
Romanian Post, through Western Union, offers the quickest way to receive money from more than 190 countries. As additional service, Romanian Post exclusively offers the payment at the beneficiaries residence of the amount sent by the quick money transfer Western Union. The service of payment made at the beneficiaries residence covers the whole country and i t is available at the senders request.

Evolution of

Direct Mail

services

during the period 2006-2007

50 000 40 000 30 000 20 000 10 000 0

- thousand lei -

2006

2007

Postmesager (Drop Mail)

Postmesager service allows sending flyers, booklets, posters, advertising, leaflets, catalogues, not addressed delivered according to the senders choice (door-to-door, to all postal boxes, to the counter etc).

Postmesager Plus
It allows sending of flyers, posters, advertisings, leaflets, catalogues, not addressed to various sectors of interest.

43

Evolution of
1 000 900 800 700 600 0

Drop Mail

services

during the period 2006-2007

- thousand lei -

2006

2007

7. Invoices of payment/instalments of payment (Cash Collection)

Invoices issued by the following partners of Romanian Post can be currently paid in the postal offices: Vodafone, Orange, Romtelecom, Zapp, Cosmote, Distrigaz Sud, Electrica, RDS-RCS (Digi TV), Combridge (Eufonika), Avon. Instalment payments can also be made for products contract ed from: Citifinancial, Credit Europe Bank, BRD Finance Consumer Credits, Credit Europe Bank Financial Services, Cetelem, Credex, Ralfi (Estima Finance), ABN AMRO Bank, Porsche Romania Group.

Evolution of

Cash Collection
- thousand lei -

services

during the period 2006-2007

70 000 60 000 50 000 40 000 30 000 20 000 10 000 0

2006

2007

44

quality

of postal services

quality
of postal services

46

Romanian Post, by its organizational structure and concept regarding the quality management, is situated at the level of top postal operators in Europe but permanent actions for improving and monitoring the quality of postal services by involving all the organizational structures of the company are necessary. As the quality of postal service is a constant preoccupation of Romanian Post in order to fulfill its permanent mission of distributing postal items in due time on the whole national territory, the monitoring of circulation on tine, by independent quality test and own monitoring, also continued in 2007. Independent tests are organized by international bodies: Universal Postal Union and International Postal Corporation and aim to check the compliance with quality standards imposed by European Directives at European level (85% J+3 and 97% J+5), as well as with world norm (65% J+5), where J means the posting day of the postal item. During 2007, 4 projects undertaken by Romanian Post after the audit performed by Post Europ in November 2006 were implemented in the Romanian Post al network, the 4 projects were chosen based on grounds adequate to the current organization of Romanian Post and concrete benefits brought to service quality: Quality Management, Logistics, Regional Transit Centre Bucharest, Collecting/Emptying of post-boxes. Implementation of those four projects, currently being in different phases, determined an improvement of the circulation time on the national territory for priority letter-mails received from countries of European Union. The Regional Transit Centre in Bucharest was highly appreciated, the PostEurop experts suggesting that its organization model should be taken and implemented to all the other transit centers in the country, including future automated processing centers. In order to create and maintain an adequate environment for continuous improvement, it is necessary to follow up the permanent development of the capacity of understanding and fulfillment of the clients expressed and implicit necessities and ensuring their increasing satisfaction, which can be done only by making aware and involving all postal employees participating to the achieving of the activity objective of the Romanian Post . The internal audit was performed and the activities necessary to certify the Mailing House Bucharest Branch according to SR EN ISO 9001:2001 standard continue to be performed. The project team ISO 9001:2001 started the elaboration of the documentation related to Quality Manual for internal letter-mail service, in order to obtain the certification of the internal letter -mail service according to the requirements of ISO 9001:2001 Standard.

47

international
relations

international
relations

50

Postal services in the European Union are regulated by Directive 97/67/EC of the European Parliament and of the Council of 15 December 1997 on common rules for the development of the internal market of Community postal services and the improvement of quality of service, amended by Directive 2002/39/EC. The Directive mentioned year 2009 for the full accomplishment of the internal market for postal services (elimination of monopole). On 11 July 2007, the European Parliament adopted the amended version of the draft Directive on completion of the internal market for community postal services, for the purpose of complete opening of the postal markets for liberalization until 31 December 2010. On the 1st of October 2007 the Transport, Telecommunication and Energy Council of the European Union (EU) gathered in Luxembourg, decided that the liberalization of postal services to be definitively solved in Romania until 31 December 2012. Following the decision made at Luxembourg, Romanian Post shall preserve its monopoly on the distribution of letters weigh ting less than 50 grams until 31 December 2012. Slovakia, Czech Republic, Hungary, Poland, Lithuania, Latvia, Malta, Cyprus, Greece, Luxembourg and Bulgaria may also benefit from this grace period for the liberalization of postal services. It was accepted the granting of this transition period, according to which the total liberalization of postal services may be postponed for all member states that joined EU after the date when Directive 2002/39/EC entered into force and that did not have the necessary time to adapt the postal markets, due to the fact that they joined the reform process later; this period was also given for states having a difficult location or many islands.

1. Important events
The year 2007 was marked by the preparations for the World Philatelic Exhibition EFIRO 2008. In this respect, several actions for promoting and popularizing the exhibition at national and international level were performed, as follows: Romanian Post organized in Timisoara during the period 11-12 April a seminar to promote EFIRO 2008 attended by M r . Jos Wolff, president of the International Federation of Philately (FIP), Fernando Aranaz del Rio, vice-president FIP and consultant for EFIRO 2008, Michael Garcia Fernandez, president of Youth Commission within FIP and Gabriel Mateescu, International Cooperation Director within Romanian Post, chairman of the Council of Administration of the the Universal Postal Union and president of EFIRO 2008 Organization Committee together with Romanian philatelists. The aim of this seminar was to promote the World Exhibition EFIRO 2008 within the Romanian philatelists, promptly and correctly inform them about this exhibition, as well as submit and discuss several aspects regarding the organization of such an event, from international perspective.

51

The obtaining the patronage of the International Association of Philatelic Journalists for the World Philatelic Exhibition EFIRO 2008, as well as taking the decision to organize the Congress of this association in Bucharest, during EFIRO 2008, thus ensuring an exceptional promotion of the event in the philatelic world. The promotion of EFIRO 2008 on the occasion of philatelic exhibitions in Sankt Petersburg, Budapest and Istanbul and also on the occasion of the sessions of the UPU Council of Administration and Postal Operations Council in Bern. The regulation of the competition class dedicated to postal administrations/companies issuing stamps in the member states of the Universal Postal Union, elaborated by representatives of UPU International Office in collaboration with F.I.P. representatives was approved at the session of UPU Board of Directors. This competition class dedicated to postal administrations is to be introduced for the first time, as an experiment, at EFIRO 2008.

Romania continued to hold, through Mr. Gabriel Mateescu International Cooperation Managerthe position of president of the U.P.U Board of Directors. From this position, Mr. Mateescu delivered a series of presentations related to the Nairobi Postal Strategy to be submitted in order to be adopted at the 24th Congress of U.P.U. in August 2008. These presentations took place on the occasion of the so-called regional round tables aiming at the incorporation of elements and opinions specific to every region in order to ensure greater legitimacy and representativeness to the respective strategy. Also during the year 2007, Romanian Post was involved in the development of several international projects, mainly under the aegis of the Universal Postal Union. The International Cooperation Directorate ensured the assistance and facilitation functions for the projects developed within the new established Control, Quality and Projects Directorate, whether QSF projects or twinning projects.

2.Perspectives for 2008

The most important objectives of the International Cooperation Division are: The organization of the World Philatelic Exhibition EFIRO 2008 dedicated to celebration of 150 years from the issue of the first Romanian postal stamp, during the period 20 June - 28 June 2008. The participation to the 24 2008. Congress of the Universal Postal Union in Geneva during 23 July- 12 August

The organization in Romania of Balkans Postmen Fast Walking Competition during the period 27 August - 31 August 2008.

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events

of 2007

events
of 2007

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Letter Writting Contest

Starting from 1991, Romanian Post organizes, under the aegis of the Universal Postal Union (UPU), an epistolary contest intended for children up to 15 years of age. Why do people need tolerance was the topic of the 2007 edition won by Claudia Goina, pupil in the 5th form at "Carmen Sylva" Pedagogical High-school in Timisoara. Claudias paper was translated into English and sent to Bern to participate to the international phase of the contest. For every edition of the epistolary contest, Romanian Post collaborates with the Ministry of Education and Research, whose representatives participate on a voluntary basis.

Balkan`s Postmen Fast Walking Competition, XXXI edition

The contest having the oldest tradition in the history of Romanian Post, Postmen Race, reached the 31st edition in 2007. The final phase of the competition took place on the municipal stadium in Piatra Neamt on 9 June. The winners of the national phase attended the Balkan's Postmen Fast Walking competition in Muntenegru.

Open Doors Day at the National Philatelic Museum

Romanian Post organized, during the period 10-14 October 2007, "Open doors days at the National Philatelic Museum" to celebrate three years from opening this culture institution . This actions third edition was meant to familiarize the pupils of I-VIII forms in Bucharest with the world of stamps, letters and other ways of communication by mail. The access was free for pupils and their accompanying teachers .

Help for postmen suffering from calamities

In 2007 floods affected again large areas in Romania, and thousands of people, including Romanian postmen, saw their houses and savings taken away by waters. In collaboration with Trade Union Federation in Post and Communications, Romanian Post organized internal collections and, thanks to the postmen solidarity, important amounts of money and donations of objects, food and clothes were also offered to the employees of RPNC in calamity-striken regions. Romanian Post also took special measures to help people in disaster localities, giving priority to the distribution of pensions, social aids and postal items.

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Prizes for hero postmen

On the 9th of October, the World Post Day, seven postmen received the distinction Hero postman Ion B. Georgescu, diplomas and money. The prize Hero postman Ion B. Georgescu is named after a Romanian postman who died more than 100 years ago, trying to save money and postal items from thieves. The distinction is annually awarded, starting from year 2005, to all postmen that performed remarcable professional activities.

Drawing contests
Romanian Post continues the tradition of organizing drawing contests annually attended by thousands of children in the whole country. On the 1st of June, the International Day of the Child, the winners of the drawing contest Travelling throughout the Post world were awarded prizes and in December the prizes for the best painters attending the contest News from home were awarded.

Exhibitions at the National Philatelic Museum

In partnership with the National Philatelic Museum, the Romanian Post organized a series of events intended for the popularization of philately and postal history within the general public. Exhibitions Mechanical Franking in the United States and Europes Day are among them.

Romanian Post continues the campaign to support children suffering from Down Syndrome
Romanian Post continues the fund raising campaign to help children diagnosed with Down syndrome. Silicone bracelets marked with the campaign slogan There is a way to a normal life are sold in almost 3 000 postal subunits in the whole country. The money raised will be donated to Bucharest Caritas Association to build a Social Service Complex for Disabled Persons in Bucharest.

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for 2008

perspectives

perspectives

for 2008

2007
2006

2008

58

Organization of the World Philatelic Exhibition dedicated to the celebration of 150 years from the issue of the first Romanian postal stamp, during the period 20 June -28 June 2008. Organization in Romania of the 2008.

EFIRO 2008

Balkans Postmen Fast walking during the period 27 August -31 August extension of the

Modification of the range of of the Romanian Post (advantages for client: services area within the universal service at reduced tariffs, respectively exempted from VAT). Delivery to the clients residence/head office of postal parcels weighting not more than 500g.

services

Launch of the services E.C.I. and EUROGIRO Ramburs (COD) (advantages for client: possibility to send/receive money in shorter time). Launch of network).

EUROGIRO

Western Union service (advantages for client: possibility to send money in Western Union

Launch of the service for electronic submission and processing of return mail-letter items and parcels (advantages for client: simplification of the procedure at the postal office, on-line management of postal items). Start of the project regarding the sale of prepaid cards in collaboration with Advanced Payment Solutions (APS) company. Separation from International Exchange Office of the activity related to delivery-acceptance of postal items to/from air transporters and its defining as operationally independent activity within an Air-postal Unit, which can be transformed at any time into Air Platform, in order to comply with the quality norms imposed by legal provisions. Development of possible.

Direct access

service with private operators and attracting as much traffic as

Launch of the Consignment service consisting in the transport of grouped postal items especially postal parcels, sent by one sender to one ore more beneficiaries; distribution of individual items to the respective beneficiaries. Launch of the Consignment service consisting in the transport of grouped postal items, especially postal parcels, sent by one sender to one ore more beneficiaries, distribution of individual items to the respective beneficiaries. Opening of postal offices in Spain meant for the Romanian citizens living in this country, which are already familiar to such postal services, to use the services of postal parcels and money transfer to Romania. Implementation of RFID system to check the post-boxes. Start of the procedure for the construction of a Regional Transit Centre in Bucharest and automation of the Regional Transit Centre in Cluj Napoca.

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Compania Naional Pota Romn

140 Dacia Blvd 020065, Bucharest

Phone: +40 21 2007 313 Fax: +40 21 2007 314 www.posta-romana.ro