Express transports goods and documents around the world with a focus on time-certain and/or day-certain delivery.
Goods and documents have different weights, shapes and sizes and can have different requirements in terms of speed of delivery, security and point of delivery. Goods and documents can have very different distance requirements, ranging from domestic (volumes within the boundaries of a country) to international (volumes shipped between countries) e.g. cross-border and/or regional as well as intra-continental and intercontinental.
The express services provided and the prices Express charges are primarily classified by speed, distances to be covered, sizes and weights of consignments. Express provides its customers express and economy express (less time sensitive) services which differ in price. The revenue-quality is the average of the growth in revenue per consignment and revenue per kilo for the domestic and international products excluding acquisitions and foreign exchange translation impacts.
Express’ customers range from small and medium enterprises, major customers, high volume shippers and global customers. Each category of customers is managed by dedicated teams and processes. Express builds strong relationships with its customers through regular personal contact and visits, as well as a wide range of communications media. The main sectors Express serves are high-tech, automotive and industrial, healthcare and lifestyle (fashion).
Express is among the leading Express players in Europe, and its global coverage extends to more than 200 countries with company-owned activities in 62 countries. In 2010, Express continued to build its positions in emerging markets while enhancing connectivity between those markets and Europe.
At present, Express operates in four reportable segments. Following the demerger, Express will report along these segments. There are three geographical segments and one business segment:
- Europe, Middle East and Africa (Europe & MEA) is the home market of Express and its main revenue and profit generator,
- Asia-Pacific (ASPAC) is a key growth area for Express, with China at its centre,
- within Americas, Brazil and Chile have been the focus of the most recent expansion of Express, while maintaining a presence in the United States and Canada in order to provide its customers with full service access to these major economies, and
- finally the business segment ‘Other Networks’ that consists of Express’ Fashion and Innight activities.
Additionally, non-allocated consists of among others of the Express Head Office and ICS (Information Communication Services) activities.
BASIS OF PREPARATION
For a detailed discussion on the basis of preparation of the financial statements in this chapter, please see Combined Financial statements.