Financial framework

Strategy, capital structure, rating and bonds

PostNL's financial framework is based on:

  • steering business performance by using value-based performance measures;
  • strict cash flow management;
  • an efficient and strong capital structure, with a long-term investment grade credit rating of BBB+ / Baa1.

The financial strategy should provide adequate financial flexibility. This is necessary to support strategic growth platforms and the restructuring of the Dutch mail business.

The key components of PostNL’s financial strategy relate directly to:

  • financial risk management and insurance,
  • aligned legal and funding structures,
  • efficient working capital management, and
  • effective risk management, internal control, and compliance.

Capital structure and credit rating

Capital management is focused on the following components of the current capital structure:

  • targeting an investment grade credit rating of BBB+ / Baa1;
  • structural availability of € 300 - € 400 million of undrawn committed facilities out of our € 400 million revolving credit facility;
  • structural funding via a combination of public and bank debt, with a risk-weighted mix of fixed and floating interest;
  • cash pooling systems that ensure optimal cash requirements for the PostNL Group by facilitating centralised funding and surplus cash concentration at group level;
  • tax-optimal internal and external funding focused on optimising the cost of capital for the PostNL group, within boundaries that are sustainable on a long-term basis.

Credit rating PostNL

Standard & Poor'sMoody's
Long-termBBB+Baa2
Outlookstable
stable
Short-termA-2--
Last updated22 June 201621 June 2016

PostNL manages its financial risk profile along a cash flow to debt and a debt to EBITDA ratio.

Further to the public offer from FedEx on TNT Express and in accordance with the irrevocable undertaking PostNL signed in that respect (see the press release), PostNL sold its remaining shareholding of 80,386,421 shares in TNT Express at the offered share price of €8.00. This transaction has been completed as per 25 May 2016. PostNL will use the proceeds to improve its financial position. PostNL strives for financial ratios in line with a BBB+/Baa1 credit rating in 2016.

Bonds

2017 Eurobond 5.375%
IssuerTNT N.V.
Size650 million
Outstanding amount508 million
CurrencyEUR
Coupon5.375%
Maturity14 November 2017
Prospectus
2018 Eurobond 7.50%
IssuerTNT N.V.
Size450 million
Outstanding amount314 million
CurrencyGBP
Coupon7.5%
Maturity14 August 2018
Prospectus

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