Unconventional Capital Wisdom
Value, long-term horizon, worldly wisdom, growth at reasonable price

PostNL: Still Delivers Value With Lower Risk

Executive Summary:

  • Pension plan renegotiated as of Jan 1 2014
  • Increased retirement age to 67 years old
  • Workers will now contribute to their pension lowering company's cash contribution
  • Rising interest rates will lower overall pension liability on the balance sheet
  • PostNL and TNT Express pension liability split
  • Postal rate increases approved by Dutch government
  • Sunday pickup and Monday delivery dropped starting Jan 1 2014
  • Continued increase in mail delivery quality higher than European competitors
  • 2015 estimated operating income yield to today's price shows upside of nearly 40% and sustainable value creation should continue to beat market over the long-term

PostNL (OTC:PNLYY) has delivered more than 100% since I originally made my thesis late in June. The brevity in...

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