Press Release

[*] For information on Brazil Domestic and China Domestic, refer to note 4 of the interim financial statements


Overall, performance continued trends of previous quarters. Year-on-year performance comparison distorted by negative working day impact.

Europe & MEA consignment volumes grew but yields declined in still-challenging trading conditions. Cost control lessened negative impact on profitability, which was in line with expectations.

Asia Pacific revenue declined due to targeted reductions in large customer volumes and continuing weak demand. Operating income flat, supported by improvements in business portfolio and cost reduction measures.

Brazil improving results from further turnaround measures, including yield actions and cost savings.

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Commenting on this quarter’s developments, Bernard Bot, interim CEO said:

‘The implementation of our profit improvement plan Deliver! is now underway. The initiatives to improve our margins, lower our cost base and reduce our exposure to loss-making activities have all been launched. We have also taken important steps in reorganising the company.

We reiterate our view that trading conditions in 2013 will continue to be challenging, especially in Europe. This underscores the need to optimise our market position and improve our productivity. We expect to start seeing a positive impact from Deliver! in the second half of the year.

The management team and I look forward to Tex Gunning starting as CEO on 1 June 2013.’
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2013 guidance:

• Challenging trading conditions foreseen in 2013 with related continued negative development of 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 and worsening trading conditions in Innight
• Brazil expected to reduce losses
  

Deliver! update:

TNT Express’ Deliver! programme runs through 2015 and is built around four priorities: reshape the portfolio, focus on TNT Express’ distinctive service, execute better and invest in infrastructure and IT. Implementation of Deliver! has started. Highlights in the quarter include:

• Sale of China Domestic announced 28 March, sale process Brazil Domestic underway
• Several initiatives to support growth in TNT Express’ target segments launched
• Functional/Business unit reorganisation passed first milestones; projects to optimise operating model and realise €220m improvements all underway
• Investment plans for infrastructure optimisation under review

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