TNT Express Delivering our customers success. Marie-Christine Lombard 2 December 2010

Transcription

1 TNT Express Delivering our customers success Marie-Christine Lombard 2 December 2010

2 TNT Express No1 intra-europe B2B Strong footprints: China and South America Broad coverage: from Domestic to Intercontinental, from Economy to Full Service/Customised Network A global, interconnected system of local networks Owned air connectivity to provide dedicated capacity & reliability Dense road networks to provide cost efficient solutions People Service oriented culture Strong local management Focus on excellence and value-added services 2

3 TNT Express today European Road and Air Network Middle-East Road network South-East Asian Road network South-American Road network 3

4 Growing with our customers Global Regional Domestic Customer Value Chain Suppliers Assemblers Asia Gateway EU DC Manufacturer Wholesaler Retailer End User TNT Network Global IT Infrastructure TNT Network Evolution Starting Position Globalisation Local economies / domestic transport Primary focus on last-mile distribution, largely parcels based Followed the customer to low cost countries More consolidated flows, freight based Acquired & built dense local road networks Owned air connectivity & best-in-class hubs/depots TNT Express can manage the entire flow for its customers E-commerce Added B2C capabilities for direct delivery 4

5 Resulting in broad market coverage Parcels / Freight Market Segments Special/ customised Expansion of value-added services in Europe Express (Day/Time Definite) Stronghold in European Express market (parcels/freight) Globalisation: intercontinental trade flows Standard (High End) Expansion to emerging platforms to tap domestic growth Standard (Lower End) Europe Intercontinental Emerging Platforms 5

6 Growth in two phases Phase I: Phase II: Expansion to Eastern Europe Double-digit growth in revenues and volumes Strong profitability growth Expansion to emerging markets Further growth of revenues and volumes Profitability diluted by network development step-up costs compounded by global economic recession Increased focus on costs & yield Historic revenue development * billion * Excluding one-offs and separation-related costs 2004 Q4 09 Q3 10 6

7 Cost savings and yield improvement programme Cost savings achieved during economic downturn Cost savings 2009: 428 million Impact yield improvement measures Figures indicative only Target average price increase % revenues affected Improved customer and product mix General price increase for customers on standardised tariffs Contract-specific price increase Surcharges 1.0% 100% 3.5% 30-35% 2.0% 65-70% Impact on profitability must be understood in context of net of cost inflation and cost efficiencies, full impact in

8 Yield improvement programme starting to pay-off Results in Q Improved customer mix Base price increase Contract specific Surcharge deployment Gap in international revenue growth between large accounts and SME customers now gone In recent months net positive yield impact of customer churn Consistent international RPC increase in all customer segments in past 2 months Low yielding customers being cut More than double the revenues on Monthly Volume Discount rate card 50% reduction of customers with partial or full fuel surcharge exemption Double the deployment of special handling surcharges Launch of Enhanced Security Surcharge as of December 12 8

9 Vision 2015: capturing growth opportunities in a changing world Major Trends TNT actions Same day Time certain Day certain (1-3 days) Day certain (3-5 days) Day uncertain Mail 1 st class Mail other Couriers Standard parcel operators Integrators Trucking companies Freight forwarders Sea carriers Documents Parcels Pallets Full Loads Bulk Adjacent service and infrastructure operators Blurring Boundaries Emerging Markets E-commerce Sustainability Customers are looking for efficient solutions and value-added service Non-guaranteed players are upgrading their service level Continued growth of international trade Strong domestic growth in emerging markets Ongoing digitisation of the economy Leading to strong growth in B2C parcels Driven by customers and governments Necessity to reduce carbon emissions & local air pollution Expanding into value-added services Offering economic options, expand in deferred segment Expanding intercontinental air connectivity with Europe Building local & regional networks in emerging markets Expanding into B2C solutions Providing internet-based sales channel to reach out to our customers Improving CO 2 efficiency: 40% by 2020 Launching CO 2 customer services 9

10 Expanding into adjacent market segments Special/ customised Express (Day/Time Definite) Standard (High End) High growth verticals, e.g. hospital & clinical express Technology, automotive & field service fulfillment European B2B parcels 3 Asia-EU lane Day definite services European Capture latent express express 1 demand freight 2 4 Standard High end B2C parcels Deferred parcels Deferred freight Domestic market leadership Standard (Low End) Europe Intercontinental Emerging Platforms Strengthen existing business 1 Parcels 3 Value-added services Expand into new activities 2 Freight 4 Emerging Platforms 10

11 1 Parcels: high-end B2C parcels solution launched Comprehensive B2C solution for e-commerce players Not at home residential deliveries SMS and/or notifying receiver when parcel will be delivered Website for receiver to rearrange delivery - Another day - Alternative address - Collection at TNT location TNT will deliver your XYZ order on 10/06/10 tracking number % 10% Traditional New approach Number of B2C parcels million +41% E 11

12 2 Freight: innovative time-definite solutions Express Process (Road) Fast On-demand Trade and emergency flows To end customer Service oriented process Road Freight Process Standardised and palletised industrial freight Predictable and consolidated Tailored to large customer supply chains Capacity maximisation process Approach Complement TNT offering to and strengthen ties with existing large customers by providing a solution for non-express supply chain Focus on European-wide palletised flows Asset-light set-up, low IT investment Utilise existing (linehaul) capacity in current Express networks, e.g. empty backhaul Leverage capabilities, e.g. back-office & procurement A sizable opportunity Existing revenues in road freight Top 25 customer potential ~ 30 million ~ 1.2 billion 12

13 3 VAS: Storapart solution for Telecom customer Combining Express and special delivery networks Spare parts storage management and order processing in forward stock locations Courier services for urgent deliveries In-night for engineer deliveries Express services for customer deliveries and replenishment Returns via road network to deliver high-quality service 2, 3 and 4 hour response KPI 24 hours / 365 days availability Full visibility and continuous improvement through control tower ISO accredited TNT s 489 forward stock locations Example 13

14 4 Emerging Platforms: air connection to Chongqing Production moving towards Central and Western China Chengdu / Chongqing Upcoming area ~70% of production Example TNT first to fly to Chongqing with own 747 freighter Strong growth of China to Europe revenues: +34% YTD Sept. Solid growth of global computing & semiconductor vertical: +27% YTD Sept Facilitated by TNT s unique landing rights Hoau network provides China domestic connectivity 14

15 4 Emerging Platforms: Brazil domestic TNT supports industry leading companies with their expansion into Brazil Example Secure mobile phone distribution for leading brand from plant in Manaus to telecom operators and retailers throughout Brazil Support of product launches and distribution of hand-held devices for leading high-tech computing company from Sao Paulo to telecom operators in Brazil Distribution of auto spare parts to garages for several leading car manufacturers and OEMs Brazil already #3 growth area for our global accounts (after intra-europe and China to Europe) leading to >60% revenue growth Sept YTD for GAM segment in Brazil 15

16 Focus on CO 2 efficiency driven by customer requirements What customers are asking for Efficient and clean transportation Historical and predictive reporting of CO2 emissions Visibility of CO2 emissions in supply chains Joint efforts to reduce CO 2 TNT Express carbon efficiency target Index: 2007 = % Global roll-out of System CO 2 in 2011 Bespoke, top-down and activity-based CO 2 allocation system including suite of reporting services Conform to latest World Economic Forum Consignment-Level Carbon Reporting guidelines System CO 2 methods assured by external party Launch of marketing programme including dedicated Microsite 16

17 Value, growth and profit Key financial principles Balanced mix of high return high growth activities Stringent investment and working capital management Tax optimisation Strong cash flow Solid balance sheet EBIT + asset efficiency + tax efficiency 17

18 2011 and 2015 Express outlook million Revenues EBIT EBIT after allocation TNT NV central costs Europe & MEA ~4,500 ASPAC ~1,550 Q Q3 10 Americas ~500 Other Networks ~400 Express ~6,950 ~350 ~ Target 7,300 7, Target 10,000 11, ,000 Includes ~ 20 million of allocated central costs, which will be offset by specific efficiency measures in the coming years Note: all figures exclude one-offs, Q4 09 Q3 10 figures at actual fx rates, targets at constant fx rates 18

19 Executive and Management Boards Marie-Christine Lombard CEO 17 years at TNT Bernard Bot CFO 5 years at TNT To be appointed Jan Willem Breen Director Marketing & Sales 4 years at TNT Chris Goossens Director Global Operations 22 years at TNT Guy Mason ICS Managing Director 1 year at TNT Group HR Director David Burton Regional Managing Director Northern Europe 28 years at TNT Christian Drenthen Regional Managing Director SE and MEA 16 years at TNT Michael Drake Regional Managing Director ASPAC 17 years at TNT Mark Gunton Regional Managing Director Americas 21 years at TNT 19

20 20 3,500 P&L responsible Express entrepreneurs

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