TNT Express Delivering our customers success. V3.3 Bernard Bot 2 December 2010

Transcription

1 TNT Express Delivering our customers success V3.3 Bernard Bot 2 December 20

2 Agenda Update current trading Finance priorities Express segmentation Outlook 2

3 Express volumes versus prior year and % % 5% 0% Core kilos* versus prior year Core cons* versus prior year Core cons* versus 2007 Core kilos* versus % -% -15% Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1- Q2- Q3- Oct * Average per working day 3

4 Express yield % chg YoY (excluding fuel), at comparable rates 4% 2% 0% -2% -4% Core RPC Core revenue quality yield Core RPK -6% -8% -% Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1- Q2- Q3- Oct 4

5 Agenda Update current trading Finance priorities Express segmentation Outlook 5

6 Finance priorities Revenue and margin growth + tax efficiency Balanced mix of high return high growth activities Tax optimisation Asset efficiency Stringent investment and working capital management Cash flow management Solid balance sheet and financing structure Target BBB+ credit rating Sufficient financial headroom 6

7 Balanced mix of high return high growth activities Intercontinental flows Europe Optimize current structure and leverage for growth in adjacent markets Yield improvement, cost and asset efficiency Position for longer term Rest of World Exploit market opportunities, balanced by need for economic profit Growth Returns Growth Returns 7

8 ETR Express stand alone to increase initially to be reduced over time Principles ETR No material changes in actual taxes paid by Express following separation Different composition of ETR (profit Mail taxed at 25.5% no longer included), leading to increase Continuous initiatives to drive cash tax down Target around 31-33% ETR over time Indicative figures, Percentage Average actual rate including revenue based taxes Loss making countries with no DTA Non-deductible costs Optimisation measures Target ETR Near term rate ~31% ~6% ~5% ~(5)% ~37% Long term rate = = 31-33% Indicative figures 8

9 Investment and working capital management Percentage of revenues Current Range Cash capex ~2.5% - 3.0% ~2.5% - 3.0% maintenance investments 1.0% - 2.0% points higher for extension investments in specific years Mainly maintenance investments in 20 Excludes operating leases Trade working capital ~12% ~% Working capital initiatives continue Focus on Emerging countries 9

10 Funding strategy Principles Availability of at least 500m of undrawn committed facilities Focus on free cash flow and cash concentration Cash pooling systems facilitating optimised cash positions Adjusted net debt Indicative figures, million TNT Express demerger targeted net debt Lease adjustments Pension adjustments De-central cash adjustments Adjusted net debt Debt ~ nil 900-1, ,000-1,200 Expected net interest ~ million per year (finance leases, local loans and interest included in FX hedges)

11 Agenda Update current trading Finance priorities Express segmentation Outlook 11

12 Marketing segmentation & reporting structure Marketing segmentation Reporting structure Parcels Freight Value-added services Emerging Platforms Europe & MEA ASPAC Americas Reporting structure in line with managerial organisation Other networks 12

13 Express Q Q3 20 prospective reporting million Revenues EBIT EBIT after allocation TNT NV central costs Q Q3 Europe & MEA ASPAC Americas Other Networks ~4,500 ~1,550 ~500 ~400 Express ~6,950 ~350 ~330 Note: all figures exclude one-offs, Q4 09 Q3 figures at actual fx rates, targets at constant fx rates 13

14 Agenda Update current trading Finance priorities Express segmentation Outlook 14

15 2011 and 2015 Express outlook million Revenues EBIT EBIT after allocation TNT NV central costs Europe & MEA ~4,500 ASPAC ~1,550 Q Q3 Americas ~500 Other Networks ~ Express Target Target ~6,950 7,300 7,500,000 11,000 ~350 ~ ,000 Includes ~ 20 million of allocated central costs, which will be offset by specific efficiency measures in the coming years Note: all figures exclude one-offs, Q4 09 Q3 figures at actual fx rates, targets at constant fx rates 15

16 Summary other indicators indication ETR Cash Capex Working capital Near term ~37% - Long term 31% - 33% % of revenues maintenance % points higher for extension in specific years Target ~% of revenues Capital structure target Net interest payments Dividend policy BBB+ ~ million per year (relating to financial leases, local debts and foreign currency hedges) Target 40% of normalised net income 16

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