Tpg Inc. · NASDAQ:TPG
Tpg — Q1 2002 Earnings Presentation
31 slides from Tpg's earnings presentation, Apr 24, 2002
Slide 1: First Quarter 2002 Results
First Quarter 2002 Results 24 April 2002
Slide 2: Highlights Q1 2002
Highlights Q1 2002 · Growth in earnings from operations of 7.6% · Solid Mail performance · Stronger than expected performance in Express · Robust Logistics performance in difficult market 2
Slide 3: Strong first quarter performance
Strong first quarter performance Q1 2002 Q1 2001 Q1 2001 adj. * Revenues 2,898 2,776 2,670 8.5% Earnings from operations 298 277 277 7.6% EBITA 293 364 273 7.3% Operating Income (EBIT) 255 331 240 6.2% Net income 143 196 128 11.7% Net income from continuing operations 143 168 128 11.7% *Adjusted for
Slide 4: Adjustments for one-off items in Q1 2001
Adjustments for one-off items in Q1 2001 Q1 2001 Adjustments for one-off items Q1 2001 adjusted for Sale of non-core Sale of Australia one-off business real estate write-off items € mil € mil Revenues 2,776 (28) (78) - 2,670 Earnings from operations 277 - - - 277 EBITA 364 (28) (78) 15 273 Operating
Slide 5: Split by Business
Split by Business Revenues Earnings € mln 2,898 +8.5% 2,670 * Logistics 28.2% 26.9% 818 298 +7.6% +13.3% 722 277 12.8% 38 +8.6% 35 12.6% Express 14.1% 42 +23.5% 37.0% 1,075 +4.9% 34 12.3% 1,025 38.2% 73.1% +4.8% 75.1% 218 208 Mail 1 , 0 1 0 +7.7% 938 34.9% 34.8% Q1 2002 Q1 2001 Q1 2002 Q1 2001 (Excl
Slide 6: Solid overall Mail performance
+3.9% +1.2% 163 712 Cross Border · Revenue growth of 7.7% Mail NL +49.1% · Operating margin at 21.6% 8 5 European · Significant expansion in Networks 5 0 European Mail Networks and Data & Document Mgmt. Data and Document +42.9% € mln Q1 2002 Management Revenues Solid overall Mail performance 685 161
Slide 7: Strong revenue growth in Mail
7.7% 4.0% 0.2% · Organic revenue growth of 3.5% 2 3.5% 37 · Acquisitions in European Mail Networks, 33 Data & Document Management and 1,010 Cross Border added 4.0% growth 938 · Strong organic growth in European Mail Networks z z z z Q1 2001 Growth Acq. FX Q1 2002 Strong revenue growth in Mail Organi
Slide 8: Positive Netherlands volume growth fuelled by one-offs
Addressed mail volume growth (NL) 2% · Total addressed mail volumes 1% increased by 1.4% 0% 1Q01 2Q01 3Q01 4Q01 1Q02 · Several one-off impacts have boosted -1% volumes in the quarter -2% · Underlying addressed mail volumes -3% fell by 1.4% -4% -5% · Pressure on direct mail volumes due Domestic Direc
Slide 9: Good revenue growth in the Netherlands
Good revenue growth in the Netherlands Total Mail NL revenue growth · Total Mail NL revenue growth of 12% 3.9% for first quarter 10% 8% 6% · High domestic mail revenue 4% growth of 10.1% due to election 2% 0% effect, Euro coins distribution 1Q01 2Q01 3Q01 4Q01 1Q02 -2% project and stamp price increa
Slide 10: Margin development in line with expectations
Margin First Quarter · Stable Mail Netherlands margin 24% 21.6% 22.2% 16% · Tight costs controls continue 8% · Some margin dilution from high EMN and DDM growth and start-up costs 0% 2002 2001 Margin development in line with expectations Margin development 2001 24% 21.4% 20.2% 20.0% 16.0% 16% 8% 0%
Slide 11: Mail Outlook 2002
Mail Outlook 2002 · Gradual lower revenue growth in Mail Netherlands over the remaining three quarters · Continued high growth in EMN and DDM · Improved growth in Cross Border · Total revenue growth 4 - 5% · Organic revenue growth 2%+ · Margin 19 - 20% 11 11
Slide 12: Stronger than expected Express performance
Europe +6.3% 892 -12.0% · Revenue growth of 4.9% 88 Australia · Margin improvement year on year Rest of World · Continued progress in Australia 95 +10.5% Q1 2002 Stronger than expected Express performance Europe Q1 2002 Q1 2001 839 Australia 100 € mln € mln Revenues 1,075 1,025 4.9% EBITA 42 34 23.5
Slide 13: Positive organic revenue growth despite economic slowdown
Express revenue growth +4.9% 1.3% 2.5% 13 · Organic revenue growth of 1.1% 1.1% 26 (3.0% outside Australia) 11 · Europe organic growth of 2.3% 1,075 1,025 · High growth in International business excluding Australia · Acquisitions,mainly Bleckmann, z z z z added 2.5% growth Q1 2001 Growth Acq. FX Q1
Slide 14: Volume and Yield Growth
Volume growth 20% Europe - Core Express Products · Total kilos carried fell by 0.4% although consignments increased 16% by 2.8% 12% · Positive revenue quality yield of 8% 2.0% (tenth consecutive quarter) 4% · Continued removal of low yielding 0% traffic streams Q100 Q2 00 Q3 00 Q400 Q1 01 Q2 01 Q3 0
Slide 15: Further margin improvement
First Quarter 6% · Good margin improvement Legend · Focus on operational service 4% 5.2.% 4.5% Excl. Australia excellence and revenue yield Incl. Australia 2% 3.9% management 3.3% · Continued strong network 0% capacity management and Q1 2002 2001 cost control Further margin improvement Margin develo
Slide 16: Express Outlook 2002
Express Outlook 2002 · Stronger economic conditions expected towards the end of the year · Capital expenditure restraints will continue to ensure improved revenues are reflected in additional profit · Revenue growth of ±5% · Margin 5% (6% excluding Australia) 16
Slide 17: Robust Logistics performance in difficult market
Rest of Europe World 70% 3 % · Revenue growth of 13.3% N-America 23% · Operating margin relatively stable at 4.7% Asia Pacific 4 % Q1 2002 Robust Logistics performance in difficult market Publishing Hi-Tech 7% Electronic 10% Q1 2002 Q1 2001 Tyres € mln € mln Auto 6% 40% Revenues 818 722 13.3% Other
Slide 18: Revenue growth in line with expectations
+13.3% 1.8% 7.1% · Higher organic growth rate than 13 4.4% 51 previous quarter 32 · Higher than average organic 818 growth in UK, Southern Europe, 722 South America and Asia z z z z Q1 2001 Growth Acq. FX Q1 2002 · Acquisitions of ALS and Cargotech Revenue growth in line with expectations 24% Organi
Slide 19: Margin under pressure but remains stable
First Quarter 4.7% 4.8% · Operating margin fell slightly 4% mainly due to the impact of acquisitions 2% · Margins continue to be under 0% pressure but offset by stringent Q1 cost controls 2002 2001 Margin under pressure but remains stable Margin development 2001 8% 6.1% 6.4% 5.6% 5.8% 6% 4% 2% 0% Q2
Slide 20: Strong new business development
9% 10% 40% · Total pipeline stable · Strong conversion hit rate from 7% High Certainty pipeline · Contracts wins of € 179 million 12% (including renewals) 21% €1.8 B Total Pipeline Mar 2002 Strong new business development Pipeline with >70% certainty FMCG 116 148 Automotive 33 Publishing / Media Hi-
Slide 21: Logistics Outlook 2002
Logistics Outlook 2002 · Continuing difficult economic environment · Organic growth rate expected to remain under pressure · Organic revenue growth of ±10% · Margin ±6% 21
Slide 22: Financial review
Financial review · Net debt lower due to positive cash flow · Gearing down on 2001 year-end Q1 2002 Q1 2001 FY 2001 ROC 12.0% 17.7% 12.7% Gearing 60.3% 52.5% 69.2% Interest cover (times) 9.4 11.0 10.9 22
Slide 23: Cash Flow Overview
Cash Flow Overview Q1 2002 Q1 2001 € mln € mln Net Cash provided by 254 322 operating activities Net Cash used in (92) (77) investing activities Net Cash used (60) (229) in financing activities Net Cash Flow 102 16 23
Slide 24: Capital Expenditure Property, plant and equipment
Capital Expenditure Property, plant and equipment € 79 mln € 65 mln 20 Logistics 18 39 Express 39 Mail 20 8 Q1 2002 Q1 2001 24
Slide 25: Outlook 2002
Outlook 2002 · Net income from continuing operations for the full year 2002 of 5-10%, assuming an unchanged business environment · Medium term outlook for growth in Net income from continuing operations remains at 12-18% 25
Slide 26: Appendix
Appendix 26
Slide 27: Statement of Income - I
Statement of Income - I Q1 2002 Q1 2001 € mln € mln Growth Revenues 2,898 2,776 4.4% Salaries and social security (1,014) (925) Depreciation (79) (68) Other operating expenses (1,507) (1,506) Earnings from operations 298 277 7.6% Non-allocated items (5) 87 EBITA 293 364 -19.5% Goodwill amortisation
Slide 28: Non-Allocated items
Non-Allocated items Q1 2002 Q1 2001 € mln € mln Gross Net Gross Net Profit on sale of non-core business - - 28 28 Sale of real estate - - 78 50 Australia restructuring - - (15) (10) - - 68 91 Other restructuring (5) (3) (4) (2) Total income/ (cost) (5) (3) 87 66 28
Slide 29: Statement of Income - II
Statement of Income - II Q1 2002 Q1 2001 € mln € mln Growth EBIT 255 331 -23.0% Fin. income & expenses (27) (30) Income taxes (85) (105) Results from affiliates - - Minorities - - Net income 143 196 -27.0% Effective tax rate 37.3% 34.9% 29
Slide 30: Balance Sheet
Balance Sheet Mar 31, 2002 Dec 31, 2001 € mln € mln Fixed assets 5,572 5,587 Current assets 2,406 2,416 Cash and cash equivalents 553 451 Total assets 8,531 8,454 Equity 2,627 2,499 Provisions 1,125 1,173 Interest bearing liabilities 2,137 2,180 Non Interest bearing liabilities 2,642 2,602 Total lia
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