Q1 2011 Results TNT NV

2 May 2011 at 08:00 CET – Amsterdam – TNT NV has published its Q1 2011 results.


On 2 December 2010, TNT announced its decision – subject to shareholder approval – to separate its Mail and Express Businesses. As a result of this decision, accounting standards require TNT NV to publish results and subsequent reports in a reporting structure anticipating the demerger of Express.

As a consequence:

  • Express reported under discontinued operations
  • Difference in scope of Express and Mail Businesses
  • Temporary adjustment due to the unwinding of certain profit pooling arrangements
  • Temporary differences to defined benefit pension expense and actual payable pension contributions

pdf – press release [174 kb]



  • Underlying revenues up 3.8% to € 1,107 million
  • Underlying operating income € 120 million; underlying cash operating income € 76 million
  • Good performance on net cash from operating activities
  • Addressed mail volumes declined by 8.6%; revenues Mail in NL down 6.3%
  • Parcels on track and International improving
  • Clarity on new tariff regulation Universal Service Obligation


  • Underlying revenues increased by 4.4% to € 1,759 million
  • Underlying operating income € 49 million
  • Express’ quarter as previously indicated in 8 April 2011 Business and Demerger Update. Immediate actions being taken on Brazil and €120 million non-cash impairment
  • New annualised savings targeted at € 40 – 50 million

Note: The underlying figures are at constant currency and exclude items as detailed on pages 4 and 8 of the full release.


Mail expects addressed volume declines in 2011 in the Netherlands of 8 – 10% due to ongoing substitution and competition, in this second year after full liberalisation. Master plan savings of € 50 – 60 million are targeted for the year. Mail’s underlying cash operating income (defined as underlying operating income minus pension cash outflows and cash out for restructuring) is expected to be € 130 – 170 million. After separation, Mail’s dividend guidelines for the next few years will include a payout around 75% of underlying net cash income, with a minimum of € 150 million per annum. In addition, shareholders will be given the dividend that Mail receives from the Express business.

The 2011 additional financial indicators relevant to underlying cash operating income:

  • Pensions: gross cash contributions for defined benefit obligations approximately € 265 million (2010: € 240 million) – the P&L impact will be adjusted at the moment of demerger
  • Restructuring cash outflows: around € 80 – 90 million (2010: € 58 million)

Other 2011 additional financial indicators:

  • Effective tax rate: around 25%
  • Cash capex: around € 200 million
  • Implementation costs Master plans: around € 70 million (2010: € 35 million)
  • Net financial expense: around € 120 million
  • Rebranding and additional central costs: around € 30 million

The above excludes extra one-off costs directly related to the separation currently estimated at around € 35 million. These costs are to be shared by the Mail and Express Businesses.


Based on the Q1 performance, Express has rephrased and revised its plans for 2011:

  • Europe & MEA revenue to grow modestly, with an underlying operating margin in line with last year (9% or slightly above)
  • Asia Pacific partially to recover on the back of now-improving intercontinental volumes
  • Americas’ continuing negative performance being addressed through a full range of corrective measures
  • Other networks to perform in line with the prior year
  • Cash flow to be supported by tight cash capex and working capital management


‘The necessary steps towards the separation of the Mail and Express businesses have now been completed, including all required notifications and publications. The demerger will be presented to our shareholders for approval at the May 25 AGM/EGM.

We previously presented major elements of our Q1 results in our April 8 Business Update.

In Q1, the Mail Business performed in line with expectations, with an ongoing focus on cash and costs. Important clarity was achieved on April 7, when Parliament approved the new Tariff Regulation defining tariff development of the Universal Service Obligation in the Netherlands. Mail management continues to engage with the Works Council regarding the implementation of Master plan restructuring.

In Express, Europe was resilient and Aspac continued to show improved volumes in latter weeks. Management is committed to address the serious integration issues in Brazil, with a deadline of realising a turnaround no later than by the second half of 2012. Today Express management also announces new cost savings targeted at € 40 – 50 million annually.

Leading up to the general meeting of shareholders on May 25, the Boards of Management of Express and Mail will update the market in detail on the investment opportunities that both companies offer. This will happen at the Express Capital Markets Day on May 3 and the Mail Capital Markets Day on May 9, and during the roadshows following each event.’


Listen to the Podcast:

Contributing Sponsors:

Getac International Sponsor of LogisticsMatter

Pin It on Pinterest

Share This