Strong performance PostNL in fourth quarter - full year 2015 underlying cash operating income amounts to €303 million

The Hague

Financial highlights Q4 2015*

  • Revenue slightly increased to €1,007 million (Q4 2014: €995 million)
  • Underlying cash operating income up 21% to €147 million (Q4 2014: €121 million)
  • Net cash from operating and investing activities increased to €181 million (Q4 2014: €169 million) after adjustment for first payment of unconditional funding obligation of €32 million to pension fund
  • Consolidated equity position improved to €(223) million (Q3 2015: €(440) million)

Solid performance full year 2015*

  • Underlying cash operating income increased to €303 million (FY 2014: €287 million)
  • Profit amounted to €149 million, impacted by exit costs and the management buy-out in the United Kingdom (FY 2014: €226 million, including positive impact past service pension costs)
  • Addressed mail volume declined by 11.2% and Parcels volumes grew 9.6%
  • €85 million costs savings achieved
  • Good progress on restructuring in Germany

Reconfirm outlook 2016

excluding results from German activities as strategic review is in progress

  • Expected full year underlying cash operating income between €220 million and €260 million

CEO statement

Herna Verhagen, CEO of PostNL: “Overall, 2015 was another solid year for PostNL and we continued to deliver on the promises we made. We proved our ability to adapt our organisation to the changing environment. Full year underlying cash operating income came in at €303 million, slightly above the midpoint of our prior guidance. This strong performance contributed to the increase of our adjusted net cash, the improvement of our net debt and the strengthening of our equity position. We remain committed to restoring the dividend as early as possible.

Not only did we show a solid financial performance in 2015, but we also succeeded in maintaining our full year quality at a high level and improved both customer satisfaction and employee engagement. Furthermore, we reached final agreement on a 5-year social plan and a new collective labour agreement for postal deliverers. In International, the strategic review resulted in a management buy-out of our activities in the United Kingdom and a commitment to invest in our Italian activities. The strategic review in Germany is nearing its completion. We estimate the equity impact to be limited. At the same time, we are working on initiatives to further improve the performance of Postcon, in addition to the restructuring projects.

For 2016, we are well-positioned to further benefit from the growing e-commerce market, given our focus on innovative and market driven solutions. For Parcels this means that we expect continued growth and to build upon our solid market position. The same applies to our cross border activities, where we expect to leverage on the growing international parcel volumes. In International we will focus on improving our cash profitability. Our main focus in Mail in the Netherlands will be on retaining volumes and the successful implementation of our restructuring plans. We expect the regulatory environment to remain challenging during the year, requiring significant management attention. As announced on 3 November, for 2016 we aim to deliver underlying cash operating income of between €220 million and €260 million. We are confident to further improve our cash and equity performance supporting our commitment to restore dividend as early as possible.”