TNT Express launches new strategy for 2012

Published: February 22, 2012

TNT Express has launched a new strategy, ‘Building on Strengths’. This agenda will include a stronger focus on Europe, and connecting Europe with the rest of the world by entering into co-operation agreements with leading airline operators. Other parts of the agenda will explore partnerships for domestic activities in Brazil and China, and look at embedding corporate responsibility in all company activities.

Marie-Christine Lombard, CEO commented: "Our franchise in Europe is unrivalled, with its unique service portfolio, dense networks and leading presence in all countries. This franchise gives us confidence in the future. We have ample opportunity to grow, not only in our traditional B2B segments but also in new services, such as PharmaSafe for the health-care sector or pan-European B2C deliveries for high value goods

"Our European cover and density enable us totransform our operating model and reduce fixed costs by €150m by the end of 2013. As a global company, our positions outside Europe remain critical to service our customers’ supply chains. The way we will do this will however change. We will reduce our exposure to fixed intercontinental capacity through cooperation agreements with leading airlines and we will explore partnership opportunities for our domestic activities in Brazil and China. Our objective is to strengthen our proposition to customers and employees while reducing our financial exposure. Given the uncertain economic environment, the year 2012 will be challenging. However, our leading market positions, together with management actions, make us confident we can realise our medium term growth and profit ambitions."

Medium-term ambitions in Europe & MEA are for revenue to grow organically and through new initiatives in adjacent market segments, with an operating margin increasing to 10-11% assuming normal economic conditions. Outside of Europe & MEA the Company targets positive contributions from operations. Capital expenditure will be targeted at around 3.0% of total revenue and trade working capital around 10.0%.