Financial highlights Q3 2015*

1. Underlying cash operating income at €23 million (Q3 2014: €31 million)
2. Net cash from operating and investing activities of €18 million (Q3 2014: €(74) million)
3. Consolidated equity position at €(440) million (Q2 2015: €(357) million)

Significant highlights post Q3 2015

1. Italian business continues to be part of PostNL
2. Closing management buy-out Whistl
3. In-principle agreement social plan 2016-2020
4. Increase base rate stamps 2016 to €0.73

Operational highlights Q3 2015

1. Addressed mail volume declined by 11.2%
2. Delivery quality at 96.4%
3. €21 million of cost savings achieved
4. Parcels volume increased by 8.6%
5. Continued improvement result International

Outlook 2015 reconfirmed*

1. Expected full year underlying cash operating income between €280 million and €320 million

CEO statement

Herna Verhagen, CEO of PostNL: “Our performance in the third quarter is in line with our expectations. We are on track to meet our full year outlook. We expect a seasonally strong fourth quarter that will benefit from two extra working days. In Mail in the Netherlands, cost savings and price increases did not fully compensate for the volume decline and autonomous cost increases. We expressed our concern about adverse effects of measures by ACM concerning the 24 hours bulk mail volumes that could hamper the reliability and accessibility of postal delivery in the Netherlands and limit PostNL’s competitive position.

Parcels continues its volume and revenue growth. Volumes were up 8.6%. Higher costs related to subcontractors impacted the result as expected. We saw improvement in our International result. The strategic review of our German activities is still in progress. Our financial position developed positively with net cash improving compared to Q3 2014. The decrease of the equity position in Q3 reflects the decline in the share price of TNT Express and a negative impact on our pension position. Looking forward, we reconfirm our full year 2015 outlook of underlying cash operating income between €280 million and €320 million. Tomorrow we will host a strategy update. We will then present our view on the market, insights in the future strategy of PostNL and a financial outlook.”

* The results from the United Kingdom are reported as discontinued operations; comparative figures have been represented. Comparative 2014 figures have been represented for the transfer of Cendris Customer Contact from PostNL Other to Mail in the Netherlands.

Source: PostNL