RNS Number:0005D
TPG N.V.
28 October 2002
TPG Delivers Strong Overall Third Quarter Performance 28 October 2002
Highlights
Highlights of Third Quarter 2002 Results
* Satisfactory profit growth in difficult markets (operating income up 6.1%, net income up 2.1%)
* Continued strong cash performance (free cash flow up 190%)
* Solid Mail revenue growth and stable margin despite accelerating volume declines
* Strong Express revenue growth and margin improvement
* Continued revenue and margin pressures in Logistics but good new contract wins
TPG Q3 2002 Q3 2001 % Change YTD 2002 YTD 2001* % Change
Euro mil Euro mil Euro mil Euro mil
Revenues 2,805 2,642 6.2% 8,602 8,205 4.8%
Earnings from operations 222 210 5.7% 825 765 7.8%
EBITA 230 214 7.5% 818 835 -2.0%
Operating Income (EBIT) 191 180 6.1% 703 733 -4.1%
Net income 99 97 2.1% 387 416 -7.0%
Net income from continuing 99 97 2.1% 387 383 1.0%
operations
Euro Euro Euro Euro
Earnings per share 0.21 0.20 0.81 0.88
Cash earnings per share 0.29 0.28 1.06 1.09
Euro Euro % Change Euro Euro % Change
Free cash flow 122 42 190.5% 525 253 107.5%
Net debt 1,511 1,724 -12.4%
*YTD 2001 includes net one-off gains of Euro 81million pre-tax and Euro 63 million after tax in respect of the sale of
non-core business,
the sale of real estate and Australia restructuring costs (see Notes 2 and 3 to the Financial Statements).
Report by the Board of Management
Third quarter group overview
TPG has delivered a strong overall performance in the third quarter of 2002, with revenues increasing by 6.2% and group
operating income growing by 6.1% compared with the same quarter last year. Net income from continuing operations
increased by 2.1%. These positive developments are particularly satisfying given the continuing difficult economic
conditions in many of the markets in which we operate.
Cash flow performance in the third quarter continues the improvement made in the first half of the year. Free cash flow
of Euro122 million was generated in the quarter compared to Euro42 million last year. This is the result of further improved
working capital management and lower capital expenditure. Both reflect the continued success of our value based
management programme.
Review of operations
Mail has achieved solid overall revenue growth and has managed to maintain a stable operating margin, despite a higher
rate of decline in Dutch volumes, which had been expected. The reduction in print media expenditure, both in the
Netherlands and across Europe generally, continues to adversely impact direct mail and data management activities,
whilst electronic substitution further impacts volume development. In the Netherlands, the development of the cost
flexibility programme is progressing well and in line with the agreed timetable.
Outside the Netherlands, the main focus has been on the expansion of our European Mail Networks and Data and Document
Management (DDM) businesses. In the UK, we have received an interim licence to deliver bulk mail and have applied for a
full term licence to take effect in 2003. The various DDM activities have now been consolidated under the brand name
Cendris.
Express has continued to perform strongly with little or no help from the wider macro economic environment. Organic
revenue growth of 6.3% remains impressive in the circumstances, as does the continued improvement in operating margins.
As before, the main drivers behind the success of the Express business are the focus on revenue quality yield and
network capacity control. The overall picture is helped further by the progressive turnaround in the Australia business.
Logistics organic growth improved in the quarter to 7.0% due to the impact of new contracts won over the last twelve
months which commenced in the quarter. Volumes on existing contracts remain low and in some cases these are below last
year's levels as a result of the depressed economic situation. However, a structured programme of cost reduction
initiatives has been developed to mitigate the impact on margins, as has the continued strategy of terminating any
non-value adding contract on renewal. A high level of new contract wins was secured in the third quarter, which is a
recognition of the quality of our operational performance, as well as evidence of the continued strong demand for
outsourced logistics solutions.
Other Financial Items
Financial expense has increased slightly in the third quarter mainly due to the extension of the debt maturity via the
Eurobond, which was issued in 2001 at a higher interest rate compared to the borrowings it replaced. The effective tax
rate also increased slightly mainly due to an increase in non-deductible goodwill amortisation.
Significant events in 3rd Quarter 2002
July 17 Joint co-operation agreement signed with
Chilean Post Office
July 23 Contract signed with Michelin for the
operation of its North American tyre
distribution
August 14 Strengthening of Auditor Independence Policy
in line with the US Sarbanes-Oxley Act
August 21 TPG Post brochure 'Towards Competition
without Frontiers' published, containing
proposals for a responsible further opening
up of the Dutch postal market
August 30 - The Netherlands hosts the AMPHILEX 2002
September 3 international philately exhibition
September 24 UK bulk mail interim licence received
Significant events after 30th September 2002
October 3 Agreement on Express products signed with
Portuguese Post Office
Outlook
The current world economic climate remains uncertain and shows little sign of improvement in the short term. The
resulting tough trading environment is expected to continue into 2003. For the full year 2002, we expect to grow net
income from continuing operations at the low end of the 5 to 10% range, in line with the outlook statement that we have
consistently given, assuming stable exchange rates and no significant deterioration in the business environment.
Business Highlights
Mail
* Solid revenue growth and stable margin
* Further declines in Netherlands volumes as expected
* Focus on expansion outside the Netherlands
Q3 2002 Q3 2001 % Change YTD 2002 YTD 2001 % Change
Euro mil Euro mil Euro mil Euro mil
Revenues 918 900 2.0% 2,887 2,773 4.1%
EBITA 144 144 0% 557 541 3.0%
Operating margin 15.7% 16.0% 19.3% 19.5%
* A solid 2.0% growth in revenues was achieved in the third quarter despite a further decline in volumes in the
Netherlands in line with expectations.
* The overall operating margin remained at a stable level mainly due to the application of rigorous cost efficiency
controls in the Netherlands. Start-up costs in European Mail Networks and the Privver digital mailbox negatively
impacted earnings by Euro6 million.
* The quality in average transmission time for business and consumer mail in the Netherlands was 96.0% in the third
quarter, consistent with the first half year.
Revenue Analysis Q3
Q3 Q3 2002 Q3 2001 % Change Org% Acq% FX%
Euro mil Euro mil
Mail Netherlands 631 620 1.8% 1.8% 0% 0%
European Mail Networks 86 74 16.2% 0% 16.2% 0%
Cross Border 155 160 -3.1% -1.2% 0% -1.9%
Data & Document Management 46 46 0% -4.3% 4.3% 0%
Mail 918 900 2.0% 0.7% 1.6% -0.3%
Revenue Analysis YTD
YTD YTD 2002 YTD 2001 % Change Org% Acq% FX%
Euro mil Euro mil
Mail Netherlands 2,008 1,960 2.4% 2.4% 0% 0%
European Mail Networks 259 209 23.9% 5.7% 18.2% 0%
Cross Border 474 479 -1.0% -2.5% 2.5% -1.0%
Data & Document Management 146 125 16.8% 0% 16.8% 0%
Mail 2,887 2,773 4.1% 1.7% 2.6% -0.2%
* Overall mail organic revenue growth of 0.7% in the third quarter was at a similar level to the second quarter.
Acquisitions in European Mail Networks and Data and Document Management contributed an additional 1.6% to revenue
growth.
* Mail Netherlands revenues grew by 1.8% in the third quarter. Total addressed mail volumes declined by 2.0% but
these were more than offset by a combination of positive price and mix effects and higher residual revenue.
Excluding the impact of one-off new business, there was an underlying decline of 3.8% in addressed mail volumes
(2.6% decline year to date).
* Domestic mail volumes fell by 3.4% mainly in the areas of letterbox mail and customised bulk mail as a result of
electronic substitution and cost efficiency programmes at large clients.
* Direct mail addressed volumes increased by 0.2%. However, excluding the additional one-off volumes, there was an
underlying 4.5% decline, mainly due to the overall decline in marketing expenditures resulting from the negative
economic environment.
* Cross Border revenues fell by 3.1% in the third quarter although 1.9% of this fall was caused by negative foreign
exchange movements. The Spring joint venture achieved a positive revenue growth of 5.0%, whereas the regular
international mail business suffered from a loss of volumes partly due to competition from electronic alternatives.
* Third quarter revenues from European Mail Networks increased by 16.2% due to first half year acquisitions
including Cerilly in Italy and Redmail in Austria. Organic revenue growth slowed down due to the imposition of local
environmental taxes on unaddressed mail in Belgium and the general depressed economic situation in most parts of
Europe affecting direct mail.
* Data and Document Management third quarter revenues were similar to last year. Organic revenue growth was
negatively impacted by the decline in direct mail volumes in the Netherlands and other European countries, which
affects data management activities. Mailroom revenues continue to show good revenue growth.
Business Highlights
Express
* Strong revenue and profit growth given the economic circumstances
* Further improvement in operating margin
* Australia continues on a steady path back to profitability
Q3 2002 Q3 2001 % Change YTD 2002 YTD 2001 % Change
Euro mil Euro mil Euro mil Euro mil
Revenues 1,071 1,002 6.9% 3,241 3,062 5.8%
EBITA 41 24 70.8% 148 97 52.6%
Operating margin 3.8% 2.4% 4.6% 3.2%
* Express has continued the positive trend of results from the first half year, growing its revenues in the third
quarter by 6.9% and improving its operating margin from 2.4% to 3.8%, through an earnings increase of over 70%.
* On a year to date basis, the operating margin is 4.6%, significantly up on last year's 3.2% margin. Excluding
Australia, the nine months margin is 5.6% compared to 4.3% last year.
* The growth in earnings is largely due to continuous deployment in all locations of the "seven right first time
processes" used in our Express business. Key amongst these processes are the application of a commercial policy
aimed at winning and keeping profitable small and medium sized customers on simplified no discount tariffs and the
persistent focus on providing the fastest and most reliable service for our customers.
* The continued success of this commercial policy (with a further 2.8% improvement in core revenue quality yield in
the third quarter) combined with strong network capacity controls remain the key drivers of margin improvement.
* Australia continues to improve with a significant reduction in losses in the third quarter compared to the same
period last year. The overall recovery plan remains firmly on track with a key indicator being the reduction in
outstanding invoice queries from a high of 18,000 at the worst point in April last year to under 100 outstanding
items now, in line with group norms.
Revenue Analysis Q3
Q3 Q3 2002 Q3 2001 % Change Org% Acq% FX%
Euro mil Euro mil
Express Europe 881 810 8.8% 6.1% 2.8% -0.1%
Express ROW 190 192 -1.0% 7.4% 0.5% -8.9%
Express 1,071 1,002 6.9% 6.3% 2.4% -1.8%
Revenue Analysis YTD
YTD YTD 2002 YTD 2001 % Change Org% Acq% FX%
Euro mil Euro mil
Express Europe 2,674 2,484 7.6% 5.2% 2.6% -0.2%
Express ROW 567 578 -1.9% 2.1% 0.3% -4.3%
Express 3,241 3,062 5.8% 4.5% 2.2% -0.9%
* Total Express organic revenue growth in the third quarter was 6.3%. Acquisitions (mostly Bleckmann) added 2.4%,
offset by a 1.8% negative foreign exchange impact due to the weakness of key currencies against the Euro.
* Organic revenue growth in Europe was 6.1% in the third quarter with core consignments increasing by 4.9% and kilos
carried growing by 1.4%. The resulting reduced average weight per consignment continues the pattern set in the first
half year, and reflects the beneficial impact of the commercial policy. As mentioned above, the year on year revenue
quality yield improvement in the third quarter was 2.8%.
* The strongest third quarter revenue growth in Europe was achieved in the UK, France, Scandinavia and Spain.
* Organic revenue growth in the rest of the world (ROW) was 7.4% in the third quarter. Excluding Australia, where
revenues have declined year on year, organic growth was 25.8%, with Asia achieving over 20% growth.
Business Highlights
Logistics
* Improved organic growth through new contracts
* High level of further new contracts wins (Euro225 million annualised)
* Total business development pipeline value maintained
* Continued pressure on margins due to economic conditions
Q3 2002 Q3 2001 % Change YTD 2002 YTD 2001 % Change
Euro mil Euro mil Euro mil Euro mil
Revenues 822 752 9.3% 2,492 2,296 8.5%
EBITA 37 42 -11.9% 120 127 -5.5%
Operating margin 4.5% 5.6% 4.8% 5.5%
* Total logistics revenue growth in the third quarter was 9.3% with a considerable improvement being made in the
organic growth rate to 7.0% aided by new contracts in line with expectations.
* Operating margins, however, remained under pressure in the quarter with declining volumes in existing business,
reflecting the continued depressed economic conditions in key industry sectors. A programme of cost actions has been
initiated division-wide in order to improve margins.
* Adverse foreign exchange movements in non Euro countries, mainly the Americas, the UK and Asia, have reduced
earnings on conversion to Euros by Euro2 million in the third quarter (Euro4 million on a year to date basis).
* New contracts with an annualised revenue of Euro225 million were won in the third quarter (Euro289 million including
renewals). This represents a significant increase over the level of new contract wins in the first half of the year
(Euro314 million). Contract terminations in the third quarter had an annualised revenue of Euro28 million.
* Despite this high level of contract wins, the total value of the business development pipeline has remained
relatively steady at Euro1.7 billion although the higher certainty element of the pipeline has slightly decreased from
Euro0.35 billion to just under Euro0.3 billion. The pipeline value by sector remains more or less unchanged.
Revenue Analysis Q3
Q3 Q32002 Q32001 % Change Org% Acq% FX%
Euro mil Euro mil
Logistics 822 752 9.3% 7.0% 6.3% -4.0%
Revenue Analysis YTD
YTD YTD 2002 YTD 2001 % Change Org% Acq% FX%
Euro mil Euro mil
Logistics 2,492 2,296 8.5% 4.2% 6.5% -2.2%
* The 7.0% organic revenue growth in the quarter was fuelled by new contract revenues which added 16.5% growth,
offset by a loss of 8.5% from terminated contracts and a 1% decline in volumes from existing business.
* Acquisitions (primarily Transports Nicolas and TNT DFDS Transport) contributed 6.3% to the overall revenue growth.
Adverse foreign exchange movements have reduced overall revenue growth by 4.0% in the third quarter (2.2% on a year
to date basis).
* Third quarter revenues in Europe increased by 15.2%. North America recorded a 3.4% positive organic growth,
although its total revenues fell by 11.4% due to a negative foreign exchange conversion and the impact of the
termination of a joint venture in the first half year. Strong growth in revenues was achieved in the rest of the
world, particularly China due to the commencement of the Anji TNT joint venture with Shanghai Automotive.
Quarterly information - Group
Euro Million Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q2 2002 Q3 2002
Group
Revenues 2,776 2,787 2,642 3,013 2,898 2,899 2,805
Earnings from operations 277 278 210 363 298 305 222
Non-allocated items 87 (22) 4 (41) (5) (10) 8
EBITA 364 256 214 322 293 295 230
Goodwill amortisation (33) (35) (34) (37) (38) (38) (39)
Operating Income (EBIT) 331 221 180 285 255 257 191
Financial income and expenses (30) (26) (29) (8) (27) (25) (31)
Income taxes (105) (70) (56) (104) (85) (81) (60)
Results from affiliates (2) 2 (1) (3) (1)
Minority interests (3) (3)
Net Income 196 123 97 169 143 145 99
Net profit on sale of non-core (28) (5) 3
business
Net Income from continuing 168 118 97 172 143 145 99
operations
Average number of shares (mil) 475.3 478.0 475.0 475.0 475.0 475.0 475.0
Earnings per share (Euro) 0.41 0.26 0.20 0.35 0.30 0.31 0.21
Cash earnings per share (Euro) 0.48 0.33 0.28 0.43 0.38 0.39 0.29
Net cash provided by operating 322 34 161 256 254 337 214
activities
Capital expenditure on property, (65) (114) (155) (147) (79) (130) (111)
plant and equipment
Disposals of property, plant and 7 27 36 21 3 18 19
equipment
Free cash flow 264 (53) 42 130 178 225 122
Number of employees 131,426 135,539 139,065 138,563 141,643 143,097 148,285
Full time equivalent employees 103,270 106,782 111,976 109,589 112,261 112,751 113,711
Quarterly information - Mail
Euro Million Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q2 2002 Q3 2002
Mail
Mail Netherlands
Revenues 685 655 620 803 712 665 631
Growth % 1.5% 0.2% 4.4% 4.7% 3.9% 1.5% 1.8%
Organic 1.5% 0.2% 4.4% 4.7% 3.9% 1.5% 1.8%
Acquisition 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Fx 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Addressed mail pieces (mil) 1,393 1,328 1,225 1,618 1,412 1,333 1,201
---------------------------------- 95.0% 95.0% 96.2% 96.2% 96.1% 96.0% 96.0%
Service quality (%)
Working days 64 61 65 63 64 61 65
European Networks
Revenues 57 78 74 96 85 88 86
Growth % 3.6% 39.3% 42.3% 45.5% 49.1% 12.8% 16.2%
Organic -5.5% 8.6% 0.2% 0.3% 16.9% 3.0% 0.0%
Acquisition 9.1% 30.7% 43.2% 45.8% 31.8% 10.1% 16.2%
Fx 0.0% 0.0% -1.1% -0.6% 0.4% -0.3% 0.0%
Data & Doc Management
Revenues 35 44 46 49 50 50 46
Growth % 6.1% 18.9% 48.4% 53.1% 42.9% 13.6% 0.0%
Organic 6.1% -3.6% 6.4% 10.3% 4.6% 0.9% -4.3%
Acquisition 0.0% 22.5% 42.0% 42.8% 38.3% 12.7% 4.3%
Fx 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Cross Border
Revenues 161 158 160 175 163 156 155
Growth % -3.0% -2.5% 3.2% 2.3% 1.2% -1.3% -3.1%
Organic -4.1% -1.4% 1.3% 1.1% -3.9% -2.5% -1.2%
Acquisition 0.0% 0.0% 3.2% -0.6% 3.9% 3.7% 0.0%
Fx 1.1% -1.1% -1.3% 1.8% 1.2% -2.5% -1.9%
Total Mail
Revenues 938 935 900 1,123 1,010 959 918
Growth % 1.0% 2.9% 8.2% 8.4% 7.7% 2.6% 2.0%
Organic 0.3% 0.3% 4.0% 4.0% 3.5% 0.9% 0.7%
Acquisition 0.5% 2.8% 4.9% 4.1% 4.0% 2.1% 1.6%
Fx 0.2% -0.2% -0.7% 0.3% 0.2% -0.4% -0.3%
Earnings from operations 208 189 144 240 218 195 144
Operating margin 22.2% 20.2% 16.0% 21.4% 21.6% 20.3% 15.7%
Quarterly information - Express
Euro Million Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q2 2002 Q3 2002
Express
Express Europe
Revenues 839 837 810 882 892 900 881
Growth % 5.8% 3.3% 1.6% -2.3% 6.3% 7.5% 8.8%
Organic 6.1% 4.2% 3.7% -2.0% 2.3% 6.9% 6.1%
Acquisition 0.6% -1.3% -1.1% -0.1% 3.0% 1.9% 2.8%
Fx -0.9% 0.4% -1.0% -0.2% 1.0% -1.3% -0.1%
Core consignments (mil) 32.0 31.6 28.8 33.0 32.9 33.8 30.2
Core kilos (mil) 521.8 505.8 487.3 550.2 519.8 522.5 494.3
Core revenue quality yield 7.5% 5.7% 2.8% 2.2% 2.0% 2.4% 2.8%
improvement
Express ROW
Revenues 186 198 192 195 183 195 190
Growth % -4.6% -3.4% -13.1% -11.8% -1.6% -1.5% -1.0%
Organic 1.0% 1.2% -4.6% -7.1% -4.8% 5.0% 7.4%
Acquisition 0.0% 0.0% 0.2% 0.1% 0.5% 0.0% 0.5%
Fx -5.6% -4.6% -8.7% -4.8% 2.7% -6.5% -8.9%
Total Express
Revenues 1,025 1,035 1,002 1,077 1,075 1,095 1,071
Growth % 3.7% 2.0% -1.6% -4.2% 4.9% 5.8% 6.9%
Organic 5.1% 3.6% 2.0% -3.0% 1.1% 6.6% 6.3%
Acquisition 0.5% -1.0% -0.9% -0.1% 2.5% 1.5% 2.4%
Fx -1.9% -0.6% -2.7% -1.1% 1.3% -2.3% -1.8%
Working days 63 60 65 62 62 61 65
Earnings from operations 34 39 24 70 42 65 41
Operating margin 3.3% 3.8% 2.4% 6.5% 3.9% 5.9% 3.8%
Quarterly information - Logistics
Euro Million Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q2 2002 Q3 2002
Logistics
Revenues 722 822 752 829 818 852 822
Growth % 69.1% 72.7% 43.5% 10.2% 13.3% 3.6% 9.3%
Organic 17.5% 11.5% 10.9% 2.3% 4.4% 0.8% 7.0%
Acquisition 53.6% 61.5% 36.2% 7.7% 7.1% 6.9% 6.3%
Fx -2.0% -0.3% -3.6% 0.2% 1.8% -4.1% -4.0%
Revenue by geography:
Europe 471 548 519 592 569 611 598
North America 200 213 175 178 190 177 155
ROW 51 61 58 59 59 64 69
Revenues by sector:
Automotive 337 331 291
Tyres 46 46 58
FMCG 131 150 179
Hi-tech electronics 94 94 86
Publishing / media 56 57 57
Other 154 174 151
Earnings from operations 35 50 42 53 38 45 37
Operating margin 4.8% 6.1% 5.6% 6.4% 4.7% 5.3% 4.5%
Consolidated statements of income
Q3 2002 Q3 2001 YTD 2002 YTD 2001
Euro mil Euro mil Euro mil Euro mil
Net sales 2,777 2,609 8,525 7,999
Other operating revenues 28 33 77 206
Total operating revenues 2,805 2,642 8,602 8,205
Salaries and social security contributions 971 921 2,994 2,830
Depreciation, amortisation and impairments 119 107 355 317
Other operating expenses 1,524 1,434 4,550 4,325
Total operating expenses 2,614 2,462 7,899 7,472
Operating income 191 180 703 733
Financial income and expenses (31) (29) (83) (84)
Income before income taxes 160 151 620 649
Income taxes (60) (56) (226) (232)
Results from investments in affiliated companies (1) 2 (4) 0
Minority Interests 0 0 (3) (1)
Net income 99 97 387 416
Effective tax rate 37.5% 37.1% 36.5% 35.7%
Net income per ordinary share and per ADS (1) (in 0.21 0.20 0.81 0.88
++)
Net income per diluted ordinary share and per ADS 0.21 0.20 0.81 0.88
(2) (in ++)
Net income adjusted for goodwill amortisation 0.29 0.28 1.06 1.09
per diluted ordinary share and per ADS 2 (in ++)
1) Based on the average amount of 475,020,000 ordinary shares, including ADS (2001: 475,011,556)
2) Based on the average amount of 475,034,491 diluted ordinary shares, including ADS (2001: 475,131,076)
Consolidated cash flow statements
After proposed appropriation of net income
Q3 2002 Q3 2001 YTD 2002 YTD 2001
Euro mil Euro mil Euro mil Euro mil
Net income 99 97 387 416
Depreciation, amortisation and impairments 119 107 355 317
Changes in provisions for pensions and retirement schemes (47) (31) (118) (93)
Changes in other provisions 12 (15) 25 (40)
Changes in deferred taxes (24) 11 (5)
Changes in working capital 31 27 145 (78)
Net cash provided by operating activities 214 161 805 517
Acquisition/disposal of group and affiliated companies (14) 32 (98) (141)
Capital expenditure on property, plant and equipment (111) (155) (320) (334)
Disposals of property, plant and equipment 19 36 40 70
Changes in other financial fixed assets 10 (60) (1) (64)
Changes in minority interests 2 (2)
Net cash used in investing activities (96) (147) (377) (471)
Dividend (70) (67) (185) (146)
Changes in shareholders' equity (33)
Long-term liabilities acquired 20 61 30 311
Long-term liabilities repaid (18) (16) (69) (16)
Changes in short-term bank debt (62) 6 (363) (232)
Net cash used by financing activities (130) (16) (587) (116)
Changes in cash and cash equivalents (12) (2) (159) (70)
Cash and cash equivalents at beginning of period 292 187 451 250
Exchange rate differences on cash items (1) (7) (14) (1)
Cash and cash equivalents from acquisition and 6 7 (1)
disposal of group companies
Changes in cash and cash equivalents (12) (2) (159) (70)
Cash and cash equivalents at end of period 285 178 285 178
Consolidated balance sheets
After proposed appropriation of net income
At 30 Sept At 31 Dec
2002 2001
Euro mil Euro mil
Assets
Fixed assets
Intangible assets 2,746 2,807
Property plant and equipment 2,204 2,157
Financial fixed assets 639 623
Total fixed assets 5,589 5,587
Current assets
Inventory 61 56
Accounts receivable/prepayments 2,234 2,360
Cash and cash equivalents 285 451
Total current assets 2,580 2,867
Total assets 8,169 8,454
Group equity
Shareholders' equity 2,780 2,486
Minority interests 16 13
Total group equity 2,796 2,499
Provisions
Pensions and retirement schemes 830 949
Deferred tax liabilities 141 147
Other provisions 104 77
Total provisions 1,075 1,173
Liabilities
Interest bearing liabilities 1,796 2,180
Non Interest bearing liabilities 2,502 2,602
Total liabilities 4,298 4,782
Total liabilities and group equity 8,169 8,454
Additional information
Capital expenditure on property, plant and equipment
Q3 2002 Q3 2001 YTD 2002 YTD 2001
Euro mil Euro mil Euro mil Euro mil
Mail 28 60 79 86
Express 41 39 123 142
Logistics 42 56 118 106
Total 111 155 320 334
Movement in shareholders' equity
YTD 2002 YTD 2001
Euro mil Euro mil
Opening balance at 1 January 2,486 2,082
Net income for the period 387 416
Cash dividend (70) (67)
Stock dividend - 30
Repurchase of shares - (33)
Foreign exchange effects (23) (9)
Balance at 30 September 2,780 2,419
Notes to the financial statements
1. Accounting policies
Accounting policies have remained unchanged in the nine months to 30 September 2002.
2. Non-allocated items
The amount of profit before and after tax relating to non-allocated items is as follows:
YTD 2002 YTD 2001
Euro mil Euro mil
Gross Net Gross Net
Profit on sale of non-core business 33 33
Sale of real estate - - 78 50
Australia restructuring - - (30) (20)
One-off items - - 81 63
Other non-allocated costs (7) (5) (11) (7)
Total non-allocated items (7) (5) 70 56
3. One-off items in YTD 2001
One-off items (see note 2) impact the statement of income for the nine months to 30 September 2001 as follows:
Sale of non-core Sale of real Australia Total
business estate write-off
Euro mil
Euro mil Euro mil Euro mil
Revenues 28 78 - 106
Earnings from operations - - - -
EBITA 33 78 (30) 81
Operating income (EBIT) 33 78 (30) 81
Net income 33 50 (20) 63
Net income from continuing operations - 50 (20) 30
4. Composition of the Group
There have been no material changes in the composition of the Group during the nine months to 30 September 2002.
5. Changes in contingent liabilities/assets
There have been no material changes in contingent liabilities or contingent assets since 31 December 2001.
6. Employees
Total number of employees at 30 September 2002 was 148,285 compared to 138,563 at 31 December 2001.
7. Status of interim financial statements
All amounts shown in the interim financial statements are unaudited.
Financial Calendar
Financial Calendar 2003
Thursday 20 February Publication of 2002 full year results + press conference
Tuesday 1 April Annual General Meeting of Shareholders
Thursday 3 April Ex-dividend listing of TPG shares
Friday 11 April Payment of final dividend
Friday 25 April Publication of 2003 first quarter results
Monday 4 August Publication of 2003 first half year results
Wednesday 6 August Ex-dividend listing of TPG shares
Wednesday 13 August Payment of interim dividend
Monday 27 October Publication of 2003 third quarter results
Contact Information
Jon Downing
Director of Investor Relations
Contact:
Phone +31 20 500 62 41
Fax +31 20 500 75 15
Email jon.downing@tpg.com
Emilie de Weert
Manager of Investor Relations
Contact:
Phone +31 20 500 62 42
Fax +31 20 500 75 15
Email emilie.de.weert@tpg.com
Tanno Massar
Director of Media Relations
Contact:
Phone +31 20 500 61 71
Fax +31 20 500 75 20
Email tanno.massar@tpg.com
Published by:
TPG N.V.
Neptunusstraat 41-63
2132 JA Hoofddorp
P.O. Box 13000
1100 KG Amsterdam
Phone +31 20 500 60 00
Fax +31 20 500 70 00
Email tpg.communication@tpg.com
Internet www.tpg.com
Responsible for content and editing:
TPG Investor Relations
Designer:
Gary P. Hartmann
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Certain information contained in this press release is forward looking. By their nature, forward-looking statements
involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. In
addition to the assumptions specifically mentioned in this press release, there are a number of other factors that could
cause actual results and developments to differ materially from those expressed or implied by these forward-looking
statements. Although not exhaustive, the following factors could cause such differences: substitution of alternative
methods for delivering information for TPG's Mail and Express services; regulatory changes leading to further
liberalisation in the Dutch and European postal markets, including changes resulting from pending proceedings with the
Dutch regulator; intensifying competition in the mail, express and logistics businesses; decisions of competition
authorities regarding proposed joint ventures or acquisitions; costs of complying with governmental regulations; adverse
impacts of the 11 September terrorist attacks, subsequent hostilities and the anthrax incidents in the world and U.S.
economies in general and on TPG's Mail, Express and Logistics businesses, and potentially higher operating costs;
adverse impacts of additional terrorist activity or war; higher costs of insurance coverage for future claims caused by
acts of war, terrorism, sabotage, hijacking and other similar perils; impact of the current economic downturn and other
risks and trends in the world economy and the timing, speed and magnitude of any economic recovery; fluctuations in fuel
costs; changes in currency and interest rates; increased price transparency resulting from the adoption of the euro;
changes in TPG's credit rating and their impact on TPG's financing costs and requirements; changes in TPG's relationship
with the State of the Netherlands; limited back-up facilities in the event of major disruptions at key sites; incidents
resulting from the transport of hazardous materials; mismatches between infrastructure requirements and capacity;
strikes, work stoppages and work slowdowns and increases in employee costs; costs of integrating newly acquired
businesses; and changes to the international conventions regarding the limitation of liability for the carriage of
goods. These factors and other factors that could effect these forward-looking statements are described in TPG's annual
report on Form 20-F and TPG's other reports filed with the U.S. Securities and Exchange Commission. TPG disclaims any
obligation to publicly update or revise these forward-looking statements, whether to reflect new information or future
events or circumstances or otherwise.
This information is provided by RNS
The company news service from the London Stock Exchange
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