Dividend history
In the press release issued in relation to its annual Analyst Day on 4 December 2008, TNT announced that it "intends to pay a stable dividend over 2008 at € 85 cents per share, barring any unforeseen circumstances".
Since then the economic and financial crisis has deepened, which is clearly visible in the severe downturn in volumes in TNT’s Express business since 4 December. TNT does not expect any substantive improvement in this business environment during 2009.
A prudent approach towards all cash expenditures is therefore essential to underpin the basis of TNT’s current strong financial position.
Consequently, the Board of Management of TNT has decided, with the approval of the Supervisory Board, not to distribute a further cash dividend over 2008, but to propose a stock dividend to be paid out of the distributable reserves of one share for every 40 shares which, based on the volume weighted average share price of 11 - 13 February 2009 (€ 14.66) equals € 37 cents per share. The stock dividend level is derived from the decision to maintain the dividend pay-out percentage of normalised net income over 2008 at about the 2007 level, resulting in a proforma 36.3% over 2008.
As a result, the dividend over 2008 will be € 34 cents per share being the already paid interim dividend in cash. Together with the proposed stock dividend to be paid out of distributable reserves the total proforma dividend relating to 2008 will thus be € 71 cents per share.
The ex-dividend date is 14 April 2009, the dividend payment date is 21 April 2009.