q1 2010 results - tnt express · q1 2010 results - press presentation author: tnt media relations -...
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Q1 2010 ResultsPress PresentationHenk van Dalen, CFO3 May 2010
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Overall trading conditions continue to improve
GROUP• Operating income € 251 million (€ 163 million in Q1 2009); quarter
benefited from four extra working days• Profit attributable to shareholders € 143 million (€ 76 million in Q1 2009)• Net debt stable versus year-end 2009• Vision 2015 implementation as per AGM announcement progressing
EXPRESS• Development of Express volumes continues to improve• Negative year-on-year yield development shows early signs of stabilisation • Underlying* operating income € 59 million (€ 23 million in Q1 2009)
MAIL• Addressed mail volumes in the Netherlands declined by 9.7% (corrected
for working days and one-off mailings)• Good performance improvement Emerging Mail & Parcels• Underlying* operating income € 159 million (€ 149 million in Q1 2009)
* The underlying figures are at constant currency and exclude the impact of more working days in 2010 and the impact of various one-off charges in 2009
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Statement of income
€ millions Actual Q1 2010
Underlying*Q1 2010
Underlying*Q1 2009
Actual Q1 2009
Revenues 2,747 2,569 2,444 2,444
EBITDA 329 287 248 245
Operating income (EBIT) 251 213 166 163
Net financial (expense) / income (36) (40)
Income taxes (71) (47)
Effective tax rate 33.0% 38.5%
Profit for the period 144 75
EPS (in € cents) 38.6 21.2
* The underlying figures are at constant currency and exclude the impact of more working days in 2010 and the impact of various one-off charges in 2009
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Express Q1 underlying
Volume growth strong; yield pressure continuesImproved year-on-year underlying operating marginCore consignments +6.6% (day-count adj); cost per consignment -5.6%
€ millions Q1 2010* Q1 2009* Organic Acq Total
Revenues 1,488 1,364 7.0% 2.1% 9.1%EBITDA 107 75 41.4% 1.3% 42.7%Operating income (EBIT) 59 23 160.8% -4.3% 156.5%Operating margin 4.0% 1.7%
* The underlying figures are at constant currency and exclude the impact of more working days in 2010 and the impact of various one-off charges in 2009
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-10%0%
10%20%30%40%50%60%
Express 2010 volumes near 2007 levels
Volume developmentCore kilos, year-on-year change, in %
Volume development improving, however:• Yield pressure• Cost inflation
AirRoad
Weeks 1, 2 Weeks 3-13 Weeks 1, 2 Weeks 3-13
2010 versus 2009 2010 versus 2007
140%130%120%
30%20%10%
0%-10%
Core volumes exclude Special Services, Hoau, Mercúrio, Araçatuba and LIT Cargo
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Mail Q1 underlying
€ millions Q1 2010* Q1 2009 Org Acq Total
Revenues 1,022 1,026 -0.2% -0.2% -0.4%EBITDA 185 176 4.0% 1.1% 5.1%Operating income (EBIT) 159 149 5.4% 1.3% 6.7%Operating margin 15.6% 14.5%* The underlying figures over 2010 are at constant currency and exclude the impact of more working days in 2010
Four extra working days, good performance Emerging Mail & Parcels Drop in volumes: -9.7% underlying (corrected for working days and one-off mailings)Master plan savings € 18 million
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Volume decline -5.7% or -9.7% (corrected for working days and one-off mailings)
Positive mix change – bulk versus single item mail
Mail NL; addressed mail volumes
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-12%-10%-8%-6%-4%-2%0%
Total
Actual 2009Actual 20102010 corrected for working days and one-off mailings
Q1 Q2 Q3 Q4 Q1
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Positive legal outcome on sector labour agreements
Court case Sandd and SelektMail against Ministry of Economic AffairsRuling that 3.5 years after liberalisation at least 80% of employees must have a labour agreement
TNT PostCLA
SanddSelektMail
Sector CLA implying agreed average wage per hour
AgreementTNT Post
Sector CLA +Administrative Decree
Towards level playing field
April 2009 + 3.5 years
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Dividend 2009 € 0.53
Interim dividend € 0.18
Final dividend € 0.35
In cashIn ordinary shares Premium 2.21% above
cash dividend
• Shareholders who elected a final dividend in shares will receive one new TNT N.V. ordinary share for every 65 dividend rights
• 51.9% of outstanding capital has elected for dividend to be paid in stock• 48.1% of outstanding capital has elected for dividend to be paid in cash
or
+
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Volcanic ash disrupts air traffic over Europe,outstanding performance road networks
Air traffic severely curtailed
Contingency plans put in place relying on a specific road network to replace our air line hauls
Priority agreement with Eurotunnel enabled connection to UK
Little to no backlogs in TNT locations in Europe, but backlogs experienced outside Europe since there was no alternative to air uplift
Extra costs limited
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Growing Emerging Platforms
Third B747-400ERF freighter between Europe and Asia
Operational Q2 2010
Outbound from China utilisation virtually 100%
Increased demand for intercontinental service
Uplift goods from factories
Direct feed into TNT’s networks around the world
EuropeEurope
AsiaAsia
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Initiate an internal carve out of Mail business and develop equity story Obtain clarity on Mail regulatory position on the Universal Service Obligation in the NetherlandsConduct a full review of alternatives for the Mail business to ensure best positioning for company and stakeholdersSeek required approvals and advice from various stakeholders
Vision 2015 next steps
DDDDevelop detailed implementation plans for four focus areasImplement growth plansFocus on cost leadership
Group Assess organisation and structureOptimise overhead
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Outlook 2010
OverallModestly improving business environmentGlobal economic recovery remains fragile – caution is warrantedFocus on costs and cash will continue
ExpressContinuing volume growth with some recovery of weight per consignment and lower cost per consignmentRevenues and results expected well above 2009 levelsThe extent of possible pressure because of price/mix, wage increases and cost inflation will influence the magnitude of the improvement
MailAddressed volume decline in the Netherlands of 7-9%Master plan savings of € 75 million targetedResults expected to be below 2009 levels
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Warning about forward looking statements
Some statements in this presentation are "forward-looking statements". By theirnature, forward-looking statements involve risk and uncertainty because theyrelate to events and depend on circumstances that will occur in the future. Theseforward-looking statements involve known and unknown risks, uncertainties andother factors that are outside of our control and impossible to predict and maycause actual results to differ materially from any future results expressed orimplied. These forward-looking statements are based on current expectations,estimates, forecasts, analyses and projections about the industries in which weoperate and management's beliefs and assumptions about future events. Youare cautioned not to put undue reliance on these forward-looking statements,which only speak as of the date of this press release and are neither predictionsnor guarantees of future events or circumstances. We do not undertake anyobligation to release publicly any revisions to these forward-looking statementsto reflect events or circumstances after the date of this press release or to reflectthe occurrence of unanticipated events, except as may be required underapplicable securities laws.