Postnl Nv · EURONEXT:PNL
Postnl Nv — Shareholder Meeting (April 2013)
79 slides from Postnl Nv's shareholder meeting presentation, Apr 16, 2013
Slide 1: Annual General Meeting of Shareholders 2013
Annual General Meeting of Shareholders 2013 Algemene Vergadering van Aandeelhouders 2013
Slide 2: Agenda item 1: Opening and announcements
Agenda item 1 Opening and announcements Opening en mededelingen 2
Slide 3: Agenda item 2: Presentation on 2012 results
Agenda item 2 Presentation on the 2012 results by Ms H.W.P.M.A. Verhagen, CEO Presentatie over de resultaten in 2012 door Mw H.W.P.M.A. Verhagen, CEO 3
Slide 4: 2012 Performance
2012 Performance Herna Verhagen, CEO Jan Bos, CFO
Slide 5: FY 2012 performance in line with updated outlook
FY 2012 performance in line with updated outlook Underlying cash operating income / Underlying revenues margin € million Outlook* 2012 Outlook* 2012 Mail in NL - mid single digit - 5.1% 0 to 2% 0.8% Parcels + high single digit +20.1% 13 to 15% 13.7% International + mid single digit + 7.0% 1 to 2% 1.
Slide 6: Mail in the Netherlands
Mail in the Netherlands Performance impacted by delay in reorganisation and volume decline (€ million, %) 2012 2011 • Delay in reorganisation - unacceptable quality and efficiency loss, not delivering necessary cost savings Underlying revenues 2,305 2,429 • Service quality 93.9% FY – improvement in
Slide 7: Quality improving since Q2 2012
Quality improving since Q2 2012 Quality 98% 96% Target quality 94% 92% 90% Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q4 12 excluding Christmas and New Year period 7
Slide 8: Regulatory developments
Regulatory developments Adjustments to Universal Service Obligation USO • Minister intends to adjust statutory requirements for USO • increase basic rate for letters of €0.06 as of 1 July • vision postal market including package of measures USO early May • implementation expected in 2015 • Applicati
Slide 9: Parcels – strong like-for-like volume growth
Parcels – strong like-for-like volume growth New logistical infrastructure drives lower cost per item (€ million, %) 2012 2011 • Further improvement efficiency / high quality • Opening of innovative ‘parcel locker’ in Almere, Underlying revenues 730 608 pilot extended • New logistical infrastructure
Slide 10: Examples of successful expansion Parcels
Examples of successful expansion Parcels Extra@Home trans-o-flex • New opportunities: Gamma and Karwei • Stronger position in B2B parcel and pallet • Fast growing segment because of internet distribution Netherlands • New B2B platform in Belgium Zalando Mikropakket • New contract signed in March 201
Slide 11: International
International Continuation of improvement in results (€ million) 2012 2011 Underlying revenues 1,570 1,467 Underlying cash operating income 27 5 UK Germany Italy • Good overall growth, 6.5% • Positive effect of resizing on • Continued strong growth higher addressed volumes underlying cash operating
Slide 12: Outlook 2015 – ambitious and achievable
Outlook 2015 – ambitious and achievable Sustainable delivery of cash towards 2015 Underlying cash operating income (€ million) 2015 Contribution International 300 - 370 Contribution Parcels Reduced pension contributions 2012 130 • • Price increases New roll out reorganisation • More efficient overhe
Slide 13: Stronger volume decline
Stronger volume decline Volume decline (%) Trends 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 0 100 • Acceleration decline due to economic -2 90 situation -4 80 -6 70 • Increased autonomous decline SME segment -8 60 -10 50 Annual - Cumulative • Bottoming out decline expected as from 2017 Old out
Slide 14: Mail in NL – substantial price increases
Mail in NL – substantial price increases Sustainable profitability of mail products Pricing 2013 - 2015 • Bulk mail Well above inflation Price increases • Domestic single piece items Well above inflation (Increased) charges for additional services Revenue decrease 2013 - 2015 limited to low single d
Slide 15: Increased cost savings from €330 to €400 million
Increased cost savings from €330 to €400 million Limited additional expenses Cost savings (€ million) 2001 … 2010 2011 2012 2013 2014 2015 2016 2017 ~565 ~330 330 + 70 110 290 40 – 60 ¾ ~230 – 250 ¼ Previous outlook Realised New outlook € million 2011 – 2017 2011 - 2012 2011 – 2017 Restructuring cas
Slide 16: New roll out more balanced
New roll out more balanced Increased cost savings in all areas FTE impact until 2015 Operations 450 - 650 FTE forced redundancies (versus earlier expected 2,800) ~60% 1,050 - 1,250 FTE voluntary leave 700 - 900 FTE production staff Continued efforts to use mobility programme ~10% Marketing & sales 1
Slide 17: Operations: less disruptive and smaller scale centralisation
Operations: less disruptive and smaller scale centralisation Delivering necessary cost savings Current situation Towards 2015 • Phased centralisation • Based on existing processes • Improved efficiency in preparation and delivery • Balance between experienced and new employees 2012 2013 2014 2015 Nu
Slide 18: Confident in success roll out and achieving cost savings
Confident in success roll out and achieving cost savings Solid foundation: criteria met on costs, quality and employees • More phased and smaller scale approach, Successful pilot Alkmaar successfully piloted in Alkmaar • Delivery quality above target • Operating costs new • Better mix experienced an
Slide 19: Successful mobility programme
Successful mobility programme Mobility in numbers • Over 7,000 of the 11,000 full-time employees assisted from work to work • 4,000 ex-mailmen have achieved a certificate with our help • Additionally we have invested in 9,000 courses for employees Success factors • Mailmen physically fit and trustwo
Slide 20: Outlook 2015 – ambitious and achievable
Outlook 2015 – ambitious and achievable Sustainable delivery of cash towards 2015 Underlying cash operating income (€ million) 2015 Contribution International 300 - 370 Contribution Parcels Reduced pension contributions 2012 130 • • Price increases New roll out reorganisation • More efficient overhe
Slide 21: Focus on lowering pension cash contributions and risks
Focus on lowering pension cash contributions and risks Joint proposal sustainable pensions • Agreement with unions; joint proposal Key determinants cash contributions sent to pension fund • Reduction in pension contributions • Remaining top-up payment of €64 million paid in Q1 2013 • Reduce risk of
Slide 22: PostNL future perspective
PostNL future perspective Efficient and reliable parcel and mail company Smaller mail and bigger parcel company • Based on our core competence of running efficient and high quality mail and parcel networks • Based on motivated workforce • High performance culture Predictable and solid business • Fur
Slide 23: Summary results 2012
Summary results 2012 € million FY 2012 FY 2011 Change Reported revenues 4,330 4,297 0.8% Reported operating income 291 417 -30.2% Profit from continuing operations 678 (423) Profit from discontinued operations 2,159 Profit for the period 678 1,736 Profit for the period (excluding TNT Express) 241 23
Slide 24: Reconciliation reported operating income to underlying cash operating income
Reconciliation reported operating income to underlying cash operating income € million FY 2012 FY 2011 Change Reported operating income 291 417 -30.2% Foreign currency (1) Restructuring related charges (27) 7 Rebranding costs 12 9 TNT Express 134 Customer contact services 9 Pension curtailment (11)
Slide 25: 2012 underlying cash operating income in line with expectations
2012 underlying cash operating income in line with expectations € million Decrease of €18 million in underlying operating income 220 (107) 58 (63) 130 23 (9) 8 Underlying Mail in NL Parcels International PostNL Other Change in Change in Underlying cash operating pension provisions cash operating inc
Slide 26: Net cash from operating and investing activities
Net cash from operating and investing activities € million FY 2012 FY 2011 Cash generated from operations 83 321 Interest paid (99) (101) Income taxes received / (paid) (40) (98) Net cash from operating activities (56) 122 Interest / dividends received / other 7 14 Capex (204) (137) Proceeds sale of
Slide 27: Consolidated statement of financial position
Consolidated statement of financial position Net debt increased by €222 million compared to 2011 € million 31 Dec 2012 31 Dec 2012 Intangible assets 168 Distributable equity 1,025 Property, plant and equipment 536 Non-distributable equity 44 Financial fixed assets 33 Total equity 1,069 Pension asset
Slide 28: Equity gap due to IAS 19R and cancelled deal UPS/TNT Express
Equity gap due to IAS 19R and cancelled deal UPS/TNT Express Dividend expected in 2016* 1,069 Many options explored Consolidated equity indicative certainty BBB+/Baa1 1,069 credit rating expected (1,370) (466) (767) (767) Equity IAS 19 Impairment Equity 2013 2014 2015 2016 2017 31 Dec 2012 pensions
Slide 29: Corporate equity position
Corporate equity position 2,306 (1,170) 1,136 (1,549) (767) (35) (448) Equity Effect IAS 19 Equity Restricted Non-distributable Distributable equity 31 Dec 2012 1 January 2013 revaluation reserve equity 1 January 2013 29 * at current parameters
Slide 30: Stake TNT Express to be sold in medium term
Stake TNT Express to be sold in medium term Create better value for our shareholders Expect to monetise stake over the medium term to create better value for shareholders, after we have seen stability return to TNT Express Changes to Relationship Agreement • Relaxation of certain conditions and rest
Slide 31: Outlook 2015 ambitious and achievable
Outlook 2015 ambitious and achievable Balanced ambitions underpinning outlook Addressed mail volume decline 8 to 10% Revenues Underlying cash operating income / margin Adjusted Underlying Underlying € million 2012 2013 2015 2012 2013 2015 - mid single - low single Mail in NL 2,2701 0.9%1 -2 to 0% 8
Slide 32: Agenda item 3: Annual Report 2012
Agenda item 3 Annual Report 2012 Jaarverslag 2012 32
Slide 33: Agenda item 4: Corporate Governance chapter discussion
Agenda item 4 Discussion of the Corporate Governance chapter in the Annual Report 2012, chapter 13 Bespreking van het corporate governance hoofdstuk in het jaarverslag 2012, hoofdstuk 13 33
Slide 34: Insert smart card
Insert smart card Smart card invoeren Insert the card with the gold chip pointing toward you Voer de kaart in met de gouden chip naar u toe 34
Slide 35: Insert smart card
Insert smart card Smart card invoeren When the card is inserted well a welcome message will appear on the display Als de kaart goed is ingevoerd, verschijnt een welkomstboodschap op het scherm 35
Slide 36: Insert smart card
Insert smart card Smart card invoeren Should the card not be inserted well a warning message will appear on the display Als de kaart niet goed is ingevoerd, verschijnt een waarschuwing op het scherm 36
Slide 37: Voting
Voting Stemmen When the agenda item is opened the display will show three choices Als het agendapunt aan de orde komt, verschijnen drie keuzes op het scherm 37
Slide 38: Voting
Voting Stemmen To vote you press 1, 2 or 3. For example press 1 if you’re in favour of the item. The display will confirm your vote Kies 1, 2 of 3 om te stemmen. Kies bijvoorbeeld 1 om vóór te stemmen. Uw stem wordt op het scherm bevestigd 38
Slide 39: Voting
Voting Stemmen You can change your vote at any time. Press the C button to cancel your vote. Then make a new choice U kunt uw keuze veranderen. Druk op de C-toets om uw stem te annuleren. Stem dan opnieuw 39
Slide 40: Voting
Voting Stemmen Please leave the keypad and the smart card with the hostesses when leaving the room Lever alstublieft het stemkastje en de kaart in bij de hostessen bij het verlaten van de zaal 40
Slide 41: Agenda item 5: Adoption of the 2012 financial statements
Agenda item 5 Adoption of the 2012 financial statements (Resolution) Vaststelling van de jaarrekening over het boekjaar 2012 (Besluit) 41
Slide 42: Voting result: financial statements
Agenda item 5 For / Voor 188.640.318 Against / Tegen 11.492.846 Abstain / Onthouding 5.105 For / Voor Ls 94.26% Against/Tegen [5.74%
Slide 43: Agenda item 6: Dividend
Agenda item 6 Dividend a. Discussion of the reserves and dividend guidelines Behandeling van het reserverings- en dividendbeleid b. Appropriation of profit Winstbestemming 43
Slide 44: Agenda item 7: Release from liability, Board of Management
Agenda item 7 Release from liability of the members of the Board of Management (Resolution) Het verlenen van kwijting aan de leden van de Raad van Bestuur (Besluit) 44
Slide 45: Voting result: release Board of Management
Agenda item 7 For / Voor 198.862.246 Against / Tegen 765.935 Abstain / Onthouding 510.089 For / Voor Ls £29.62% Against/Tegen | 0.38%
Slide 46: Agenda item 8: Release from liability, Supervisory Board
Agenda item 8 Release from liability of the members of the Supervisory Board (Resolution) Het verlenen van kwijting aan de leden van de Raad van Commissarissen (Besluit) 46
Slide 47: Voting result: release Supervisory Board
Agenda item 8 For / Voor 145.943.657 Against / Tegen 52.741.036 Abstain / Onthouding 1.456.150 For / Voor 73.45% Against/Tegen [i 26.55%
Slide 48: Agenda item 9: Amendments to the Articles of Association
Agenda item 9 Amendments to the Articles of Association (Resolution) Wijziging van de statuten van de vennootschap (Besluit) 48
Slide 49: Voting result: Articles of Association
Agenda item 9 For / Voor 193.721.773 Against / Tegen 6.408.351 Abstain / Onthouding 8.245 For / Voor a 73.45% Against/Tegen {i 26.55%
Slide 50: Agenda item 10: Supervisory Board
Agenda item 10 Supervisory Board Raad van Commissarissen a. Announcement of vacancies in the Supervisory Board Kennisgeving van vacatures in de Raad van Commissarissen b. Opportunity for the General Meeting to make recommendations for the (re)appointment of members of the Supervisory Board Gelegenhe
Slide 51: Agenda item 11: Appoint Ms A.M. Jongerius
Agenda item 11 Proposal to appoint Ms A.M. Jongerius as a member of the Supervisory Board (Resolution) Voorstel tot benoeming van mevrouw A.M. Jongerius tot lid van de Raad van Commissarissen (Besluit) 51
Slide 52: Voting result: Jongerius appointment
Agenda item 11 For / Voor 96.986.355 Against / Tegen 75.721.184 Abstain / Onthouding 27.433.404 For / Voor I 56.16% Against/Tegen [IN 43.84%
Slide 53: Agenda item 12: Appoint Mr J.W.M. Engel
Agenda item 12 Proposal to appoint Mr J.W.M. Engel as a member of the Supervisory Board (Resolution) Voorstel tot benoeming van de heer J.W.M. Engel tot lid van de Raad van Commissarissen (Besluit) 53
Slide 54: Voting result: Engel appointment
Agenda item 12 For / Voor 119.711.987 Against / Tegen 75.676.344 Abstain / Onthouding 4.750.613 For / Voor a 127% Against/Tegen [0 38.73%
Slide 55: Agenda item 13: Supervisory Board vacancies 2014
Agenda item 13 Announcement of vacancies in the Supervisory Board as per the close of the Annual General Meeting of Shareholders in 2014 Mededeling over vacatures in de Raad van Commissarissen die na afloop van de Algemene Vergadering van Aandeelhouders in 2014 zullen ontstaan 55
Slide 56: Agenda item 14: Adoption of Remuneration Policy 2013
Agenda item 14 Adoption of the Remuneration Policy 2013 (Resolution) Vaststellen van het bezoldigingsbeleid 2013 (Besluit) 56
Slide 57: Voting result: remuneration policy
Agenda item 14 For / Voor 142.731.693 Against / Tegen 55.881.510 Abstain / Onthouding 1.527.240 For / Voor a 71.86% Against/Tegen {I 28.14%
Slide 58: Remuneration policy PostNL
Remuneration policy PostNL
Slide 59: Current remuneration policy
Current remuneration policy Current components remuneration policy Salary Pension • Fixed • Variable • Half of the remuneration consists of a fixed salary (base salary) • The other half of the remuneration can be earned based on pre-defined (short-term) performance targets • Payment of the variable
Slide 60: Remuneration policy PostNL 2013: Background of revising the policy
Remuneration policy PostNL 2013 Background of revising the remuneration policy • In 2012, the Remuneration Committee initiated a review of the remuneration policy • The Supervisory Board explicitly committed to a remuneration policy that is: ▪ sober and transparent ▪ in line with market developments
Slide 61: Remuneration policy PostNL 2013: stakeholders
Remuneration policy PostNL 2013 PostNL is aware of the various stakeholders: • Customers • Employees • Shareholders • Trade unions / employee representative bodies • Social environment • Legislation and regulation (including Corporate Governance Code) All these stakeholders have their own - sometime
Slide 62: Remuneration policy PostNL 2013: main characteristics
Remuneration policy PostNL 2013 The main characteristics of the remuneration proposal 2013 are: 1. The total direct remuneration consists of a fixed and a variable component 2. The peer group has been amended, combining 7 AMX and 5 AEX companies and better matches PostNL’s current position (a combin
Slide 63: Remuneration policy PostNL 2013: total direct remuneration
Remuneration policy PostNL 2013 Total direct remuneration 175% Base salary Variable remuneration 100% 75% Short term Long term Cash Shares 37.5% 37.5% 63
Slide 64: Remuneration policy PostNL 2013: Variable remuneration
Remuneration policy PostNL 2013 Variable remuneration • The focus is on the long-term objectives and stakeholder interests • The variable remuneration makes a distinction between: Short term Cash paid out in cash and based on the realisation of short-term targets 37.5% Long term paid out in shares b
Slide 65: Variable remuneration - Performance criteria
Remuneration policy PostNL 2013 Variable remuneration - Performance criteria Short term Long term Cash Shares Financial objectives Internal financial and 60% strategic objectives 100% Non-financial objectives 40% Maximum to be earned in cash Maximum to be earned in shares 37.5% of base salary 37.5%
Slide 66: Remuneration policy PostNL 2013: Long term remuneration
Remuneration policy PostNL 2013 Long term remuneration • The long-term remuneration involves agreements on shares based on the realisation of long-term targets (over three years) • The potential value of the shares upon granting amounts to 37.5% of base salary • The maximum number of shares to be gr
Slide 67: Long-term remuneration - Temporary plan
Remuneration policy PostNL 2013 Long-term remuneration - Temporary plan • Amendment of the remuneration system and the introduction of a long-term component results in an intended and an unintended effect on the disposable income. The first allocation of shares under the new long-term agreements wil
Slide 68: Total remuneration 2012 versus remuneration 2013
Total remuneration 2012 versus remuneration 2013 CEO 2012 2013 2012 versus 2013 Base salary 700,000 625,000 75,000 lower From a maximum of 100% to a Variable remuneration 700,000 469,000 maximum of 75% of base salary Total salary 1,400,000 1,094,000 306,000 lower CFO 2012 2013 2012 versus 2013 Base
Slide 69: Agenda item 15: Authorisation to issue ordinary shares
Agenda item 15 Extension of the designation of the Board of Management as authorised body to issue ordinary shares (Resolution) Verlenging van de aanwijzing van de Raad van Bestuur als bevoegd orgaan tot het uitgeven van gewone aandelen (Besluit) 69
Slide 70: Voting result: issue shares
Agenda item 15 For / Voor 166.324.435 Against / Tegen 33.807.196 Abstain / Onthouding 5.738 For / Voor SS 83.11% Against/Tegen [5 16.89%
Slide 71: Agenda item 16: Limit pre-emptive rights
Agenda item 16 Extension of the designation of the Board of Management as authorised body to limit or exclude the pre-emptive right upon the issue of ordinary shares (Resolution) Verlenging van de aanwijzing van de Raad van Bestuur als bevoegd orgaan tot het beperken of uitsluiten van het voorkeursr
Slide 72: Voting result: pre-emptive rights
Agenda item 16 For / Voor 164.469.099 Against / Tegen 35.665.701 Abstain / Onthouding 1 For / Voor SS 83.11% Against/Tegen [9 16.89%
Slide 73: Agenda item 17: Authorisation to acquire own shares
Agenda item 17 Authorisation of the Board of Management to have the company acquire its own shares (Resolution) Machtiging van de Raad van Bestuur tot het verkrijgen van eigen aandelen door de vennootschap (Besluit) 73
Slide 74: Voting result: share buyback
Agenda item 17 For / Voor 187.473.637 Against / Tegen 11.538.093 Abstain / Onthouding 1.124.970 For / Voor a 94.20% Against/Tegen {5.80%
Slide 75: Agenda item 18: Assessment of external auditor PwC
Agenda item 18 Key conclusions from the three-yearly assessment of the functioning of external auditor PricewaterhouseCoopers N.V. Belangrijkste conclusies uit de driejaarlijkse evaluatie van de werkzaamheden van de externe auditor PricewaterhouseCoopers N.V. 75
Slide 76: Results three-yearly assessment PwC
Results three-yearly assessment PwC Assessment PwC 5,0 4,0 3,0 2,0 1,0 added value - relationship quality of audit work audit fees total assessment of and business understanding and reporting audit work 2010 2011 2012
Slide 77: Agenda item 19: Questions
Agenda item 19 Questions Vragen 77
Slide 78: Agenda item 20: Close
Agenda item 20 Close Sluiting 78
Slide 79: post
post