Press Release

TNT announces 4Q & FY14 results, sets Outlook agenda and guidance for 2018-19

Publish Date : 17 February 2015 07:00 CET -

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Amsterdam, The Netherlands

  • Reported revenues €1,787m (+1.6%), reported operating income €(53)m (4Q13: €79m positive)
  • Comparable revenue growth (adjusted for disposals and foreign exchange) of 3.2%, adjusted operating income €50m (4Q13: €59m)
  • Lower reported operating income due to Outlook-related restructuring charges and implementation costs (€70m), goodwill impairments (€32m) triggered by the new reporting structure, TNT re-launch (€22m)
  • Outlook initiatives on track: new organisational and reporting structure in place, step-up in investments in infrastructure, 4Q CAPEX €88m (4.9% of revenues)
  • 4Q operating income includes the impact (€5m) of the change in accounting treatment for the PIS/COFINS taxes in Brazil (without impact on net income); net income impacted by non-recurring tax expenses of €77m, of which a €67m non-cash valuation allowance on deferred tax assets
  • Proposed final dividend of €0.031 per share


Commenting on the fourth quarter, Tex Gunning, CEO said:

‘The building blocks of TNT’s Outlook strategy have been put in place. We are investing in our people, processes, IT systems and institutional competencies, whilst facing stiff competition and adverse trading conditions, particularly in Western Europe. Our focus on small and medium enterprises is gaining traction and we are making progress in service reliability measured by on-time performance. The results of TNT’s customer experience survey were the highest in years.

Comprehensive productivity and efficiency plans have been developed and are in full execution mode. The strengthening of TNT’s European road and air networks, to deliver both express and economy express services to more destinations, is also progressing well.

In 2014, we had to take significant Outlook-related restructuring provisions, one-off charges and valuation allowances. These non-recurring charges testify to the scale of the transformation that needs to happen and to the determination of the new management team to do what it takes to transform and turn TNT around. In 2014, we did not yet realise quality revenue growth and profitability. We are still in a stage of improving the quality of our revenue base and winning back customers that were lost over the last few years. With service quality improving in our unique European road network and competitive air network, we should be able to reverse any negative trends and achieve profitable growth.

The Outlook strategy was announced in 2014. A new management team of experienced industry leaders and corporate turnaround professionals was appointed with a clear brief to create a sustainable future for TNT. Our confidence in realising the full benefits of Outlook by 2018-19 is based on the Orange spirit of TNT’s people, the loyalty of TNT’s customers and our unique European network with excellent connections to the rest of the world. 2015 will be a year of transition and we will achieve year on year improvements from 2016 onwards.

We are very much looking forward to updating the market fully at our Capital Markets Day tomorrow.’

2015 guidance

  • For 2015, TNT expects a continuation of adverse trading conditions, particularly in Western Europe
  • TNT expects 2015 to be a challenging year of transition marked by the progressive ramp-up of new and upgraded facilities and other transformation projects, such as the outsourcing of IT
  • TNT anticipates restructuring charges between €10m and €15m in 1Q15

Assumptions underlying Outlook execution

  • Revenue growth at a minimum in line with GDP growth from 2016 onwards
  • The plans assume no major adverse economic developments going forward

Outlook agenda and guidance for 2018-2019

  • Adjusted operating income margin % guidance per segment for 2018/19:
    -   International segments: 8-10%
    -   Domestics: 4-5%
    -   Unallocated: ~(0.5)% (of group revenue)
  • €800-900m of CAPEX investments during 2015-2017 period
  • €250m of cost reductions to be realised by 2018 (vs. baseline 2014), achieving a net cost reduction of €125m by 2018
  • €250-300m planned restructuring charges for 2015-2017
  • Manage positive net cash position
  • Maintain current dividend policy: TNT aims to pay a dividend of around 40% of normalised net income

Full year performance commentary

In 2014, TNT’s revenues decreased by 3.2% to €6,680m. On a like-for-like basis, revenues rose 1.8%, after adjusting for foreign exchange and the sale of China Domestic and TNT Fashion. The operating income absorbed net one-off charges of €295m. Adjusted operating income rose 20.1% to €209m.

In International Europe, the results were affected by continued pressure on sales prices and investments in future growth. International AMEA performed better than last year: The segment doubled its adjusted operating income to €51m. The Domestics segment saw further improvements in the performance of Italy and Brazil, partly offset by negative price effects in other domestic markets.

Contact information:


Gerard Wichers
Phone: +31 (0)88 393 9500


Cyrille Gibot
Phone: +31 (0)88 393 9390
Mobile: +31 (0)6 5113 3104

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