Q1 2013 Results

The Hague

Full press release

Highlights

  • Underlying revenues up 0.8% to €1,076 million
  • Underlying cash operating income €22 million (Q1 2012: €49 million)
  • Addressed volume decline 9.5% (working day adjusted)
  • Reorganisation progressing according to plan
  • Continued good performance Parcels and International
  • Value adjustment stake TNT Express €(440) million
  • Top-up pension payment of €64 million paid following the verdict of the disputes committee
  • Coverage ratio main pension fund 104.9%
  • Net debt increased by €102 million versus year-end 2012 to €1,326 million

CEO statement

Herna Verhagen, CEO of PostNL, states: "The first quarter developed in line with our expectations.

The underlying performance of Mail in the Netherlands was, as expected, impacted by the volume decline, which was within the guided range of 8-10% for 2013. The first results of the new roll out of the reorganisation are satisfactory. We have migrated 35 depots. At the same time we were able to restore our quality to 96.1%, above the statutory level and realise necessary cost savings. Furthermore, our Works Council has given positive advice on the implementation of the adjusted roll out.

Parcels continued strong growth in volumes with an increase of 6.2% like-for-like, and with good progress in the roll out of the new logistical infrastructure. In International, volumes and revenues overall showed solid growth, which resulted in a positive performance for the segment.

On the regulatory side, the Minister of Economic Affairs intends to adjust the statutory requirements for the USO and has proposed to increase the basic rate for letters by €0.06 as of 1 July 2013. The Minister has announced he will present his vision on the postal market in May. Implementation is expected in 2015. Also, on 22 April he submitted a proposal to cancel the Monday delivery.

The coverage ratio of the main pension fund was 104.9%, above the minimum required level, which resulted in the cancellation of the €13 million conditional top-up payment related to the deficit at the end of 2012. We paid the remaining part of the unconditional top-up payment (€64 million) in this quarter.

Based on our results of the first quarter and taking into account the seasonality pattern of the results of PostNL, I reiterate our 2013 outlook for underlying cash operating income in the range between €20 and €60 million."