Strategy
On 3 December 2009 TNT launched its Vision 2015 strategy. The Vision 2015 strategy encompasses the period 2010 – 2015 and aims for well balanced and ambitious business and financial objectives tailored to the different building blocks of TNT’s portfolio.
Vision 2015
The strategy sets out to capture all TNT’s business opportunities in a way that requirements for healthy shareholder returns and other stakeholder benefits are met optimally.
To realise its Vision 2015 strategy, TNT has decided to focus on five areas, four in Day Definite Delivery Services and one in Mail. In Day Definite Delivery Services, TNT will accelerate growth by concentrating its business on European Parcels, Freight, Emerging Platforms and Special Delivery Solutions. The businesses will continue to operate a set of strong networks and common sales platforms, focused on achieving customer satisfaction and cost leadership. In Mail focus will be on the business in the Netherlands, which will also include Cendris data and document management and Netwerk VSP.
European Parcels will target additional growth in the €20 billion Standard Parcels market, by extending its existing leadership position in next-day domestic and in economy cross-border parcels. Differentiated solutions will be offered by market segment (business-to-business, business-to-consumer) in each major European geography. In this cost competitive market the achievement of cost leadership through attracting volume to expand scale, optimising TNT’s networks and standardising its operations is essential.
Freight activities will aim to extend TNT’s lead in the day definite freight transport within Europe. Starting from TNT’s strong European road network as well as high growth inbound intercontinental volumes, global extensions through partnerships like the one with Con-way in the United States and TNT’s owned networks in all emerging markets will further fuel growth. In Europe, TNT expects that over time Freight will grow into partial separate networks to achieve cost leadership and customer requirements.
Emerging Platforms will aim to capitalise on its first mover advantage towards leadership positions in the day definite markets of South America and China. Next to that TNT will continue to expand and connect its road networks in “greater ASPAC” (Asia Pacific incl. India and Australia), Middle East / Africa and South America, where TNT has established an excellent competitive basis.
Special Delivery Solutions (SDS) aims to develop focused multi-customer network solutions that provide dedicated service quality while improving the economics of the TNT delivery networks. Vertical delivery solutions for sectors like pharma, health, electronics, automotive, defense, energy and high-end non-food retail will be developed. TNT is excellently positioned to service the fastest growing market for delivery solutions from e-commerce for which a dedicated solutions team has been put in place to target the chosen supply chains.
Mail NL operates in an environment of sharp further volume decline, driven by substitution and competition. The continued implementation of Master Plans will include further organisational centralisation and delivery model adjustments leading to significant savings at the originally communicated levels. The recently announced agreement in principle on the collective labour agreement for Mail Netherlands provides a well balanced basis for an efficient Mail operation going forward in a socially responsible way. Furthermore, the agreement, once approved by the trade union members, provides a strong basis for realising the financial objectives for Mail NL in Vision 2015. The combination of the collective labour agreement and implementation of Master Plans will clearly contribute to offsetting the pressure caused by declining volumes, expected to be around 6% per year.
TNT will explore business renewal opportunities and other sources of value creation in Mail NL for which TNT plans to set up an investment budget. As part of this renewal effort, the Mail activities will be prepared to enable participation in partnership options including possible future European mail incumbent consolidation.
In this context the remaining European Mail Network business (EMN) will be managed for value realisation through partnerships and sale. For EMN Germany, a final review will be undertaken in 2010, in the context of the expected market development including the recent positive outcome of the minimum wage court case, the developments regarding the VAT exempt position of the incumbent and the agreement to start a “mail alliance” with leading German publishers.
Financial objectives
