TNT Express 4Q12 results presentation Bernard Bot Jeroen Seyger - PowerPoint PPT Presentation

Area for main content TNT Express 4Q12 results presentation Bernard Bot Jeroen Seyger 18 February 2013

4Q12 highlights  Trading conditions remain challenging – 4Q12 continued trends of prior quarters Area for main content Area for main content  Cost control supported operating result, s olid capital position TNT Express  Pro forma dividend representing 39% of full year normalised net income  Challenging trading conditions – volumes grew but yields declined  Pricing pressure in addition negative mix effects EMEA  Cost control lessened impact on profitability ASPAC  Operating income improved despite weak Asia-Europe demand  Losses declined Brazil  Additional recovery actions being taken  Overhead costs contained Other  Period end net cash € 139m  Divestment Brazil Domestic Further  Outcome China Domestic divestment expected 1Q13 announcements  Full strategy update 25 March 2012; AGM 10 April 2013

‘ Building on strengths ’ 2012 achievements  Defended market position: positive volume and customer growth Area for main content Area for main content  More next-day by road and new value-added solutions Focus on Europe  Strengthened SME position  Enhanced global service coverage in partnership with leading airlines Connect Europe to the  Code share and block space agreements to cover fixed air capacity rest of the world  Reduction long haul capacity suspended, now to be restarted  € 50m indirect cost savings programme launched in May 2011: fully realised Implement structural  Re-scoped € 100m further cost savings: nearly two-thirds realised efficiencies  Divestment Brazil domestic suspended, process re-launched Reduce exposure to domestic emerging  China domestic disposal process pursued; outcome to be known soon Maximise cash flow  Optimised working capital and capex 3

Focus improvement plans Area for main content Area for main content  Leveraging of TNT Express’ distinctive European market position and worldwide connections  Flexible operating model – reduced exposure to high fixed-cost assets or activities Tangible benefits from 2013-14 operating plan  Cost efficiency  Optimal organisation  Divest non-core activities Details of our solutions on 25 March 2013

4Q12 financial highlights Area for main content Area for main content ( € m) 4Q12 4Q11 %chg Reported revenues 1,864 1,873 -0.5 Adjusted revenues* 1,835 1,873 -2.0 Reported operating income (71) (104) 31.7 Adjusted operating income* 47 58 -19.0 Net cash from operating activities 168 133 26.3 Net cash from/(used in) investing activities (66) (44) -50.0  Adjusted revenues decline due to Asia Pacific  Adjusted operating income decline mainly due to Europe & MEA; Asia Pacific and Brazil performed better  Good cash control * The adjusted figures are at constant currency (2011 rates) and exclude the impact of certain one-off charges. Please see 4Q12 press release for details of these adjustments. 5

4Q12 statement of income Area for main content Area for main content ( € m) 4Q12 4Q11 %chg Revenues 1,864 1,873 -0.5 Operating income (71) (104) 31.7 Net financial expense (9) (12) 25.0 Income taxes (57) (36) -58.0 Effective tax rate 64.8% 26.1% Profit for the period (148) (173) 14.5  Reported revenue -0.5%  Significant impact impairments on operating income  Effective tax rate reflects weighted average statutory tax rate in the countries TNT Express operates, several non-deductible costs and losses for which no tax assets could be recognised 6

4Q12 statement of cash flows Area for main content Area for main content ( € m) 4Q12 4Q11 %chg Cash generated from operations 198 189 4.8 Net cash from operating activities 168 133 26.3 Net cash used in investing activities (66) (44) -50.0 Net cash used in financing activities (18) (20) 10.0 Total changes in cash 84 69 22.2  Net cash from operating activities € 35m above prior year in large part due to lower taxes paid  Net cash used in investing activities € 22m higher than prior year mainly because of higher capex and cash out for matured foreign exchange hedges  Net capex at 3.4% of reported revenues  Trade working capital reduced to 8.0% of revenues  Net cash € 139m (4Q11: € 7m net debt)  € 200m break fee received from UPS in February 2013 7

Europe & MEA Area for main content Area for main content ( € m) 4Q12 4Q11 %chg YoY Adjusted revenues 1,166 1,154 1.0 Adj operating income 69 93 -25.8 Avg daily cons (‘000) 823 746 10.3 RPC ( € ) (at constant FX) 22.1 23.8 -7.1 Avg daily kilos (‘000) 15,194 15,087 0.7 RPK ( € ) (at constant FX) 1.20 1.18 1.7  Revenue growth supported by intercontinental air cargo sales; without these, slight revenue decline  Positive volume development despite challenging economy. Volumes grew in all product segments – highest in Domestic and International Economy  Consignment exceeded kilo growth due to general decrease in weight per consignment and higher growth of lower weight per consignment B2C parcels  Pricing pressure in addition to negative mix effect  Cost control measures only partially mitigated impact of negative yield 8

Asia Pacific ( € m) 4Q12 4Q11 %chg YoY Area for main content Area for main content Adjusted revenues 421 476 -11.6 Adj operating income 5 (3) Avg daily cons (‘000) 173 180 -3.9 RPC ( € ) (at constant FX) 38.1 40.7 -6.4 Avg daily kilos (‘000) 10,974 13,179 -16.7 RPK ( € ) (at constant FX) 0.60 0.56 7.1  Revenue decline because of lower international volumes, targeted reductions in China Domestic LTL volumes and India Domestic disposal  Day Definite service now 36% of China Domestic turnover (4Q11: 28%)  Higher RPK and lower RPC reflects improved Domestic pricing and mix offset by lower China International pricing  Block space agreements with multiple partners ensured capacity utilisation 9

Brazil Area for main content Area for main content ( € m) 4Q12 4Q11 %chg YoY Adjusted revenues 87 82 6.1 Adj operating income (18) (22) 18.2 Avg daily cons (‘000) 38 37 2.7 RPC ( € ) (at constant FX) 36.4 34.1 6.7 Avg daily kilos (‘000) 2,249 2,317 -2.9 RPK ( € ) (at constant FX) 0.61 0.55 10.9  Positive results from further turnaround measures, including pricing actions  However weak volume development  Divestment opportunities to be explored while turnaround plan continues to be implemented 10

Other Americas Area for main content Area for main content ( € m) 4Q12 4Q11 %chg YoY Adjusted revenues 42 41 2.4 Adj operating income (5) (7) 28.6 Avg daily cons (‘000) 18 17 5.9 RPC ( € ) (at constant FX) 36.3 36.8 -1.4 Avg daily kilos (‘000) 1,057 1,187 -11.0 RPK ( € ) (at constant FX) 0.62 0.53 17.0 Other Networks and Non-allocated  Other Networks performance below the prior year  Overhead costs contained 11

2012 financial highlights Area for main content Area for main content ( € m) 2012 2011 %chg Reported revenues 7,327 7,246 1.1 Adjusted revenues* 7,126 7,246 -1.7 Reported operating income 89 (105) Adjusted operating income* 188 225 -16.4 Net cash from operating activities 271 191 41.9 Net cash from/(used in) investing activities (84) (158) -46.8 * The adjusted figures are at constant currency (2011 rates) and exclude the impact of certain one-off charges. Please see 4Q12 press release for details of these adjustments. 12

2013 preliminary guidance  Challenging trading conditions foreseen in 2013 with related continued negative development of Area for main content Area for main content operating results in Europe & MEA  Asia Pacific and Other Americas expected to perform in line with prior year  Other Networks profitability affected by discontinuation of major Fashion contract  Brazil expected to reduce losses  Given the challenging trading environment, management is developing a comprehensive profit improvement plan. This plan, including outlook, will be presented on 25 March 2013. 13

Area for main content