Jørgen Jensen Distribution A/S
(77) JJD has its head office in Ikast (Denmark) and provides cargo transport services. It provides a range of transport services, including the distribution of parcels, cargo, palletised cargo, long-haul deliveries, encompassing temperature-sensitive goods (like food) and non-temperature-sensitive goods. In addition, JJD is active on the markets for haulage services with pickup and delivery on very short notice as well as courier services. JJD claims to compete with Post Danmark in the transport and distribution sector. It considers that the capital injections, which are subject of this Decision, directly affect its operations since they would give Post Danmark the capability to offer lower prices than the market price (15 % to 30 % lower). JJD explains that it has experienced this in the context of tenders and competitions based on customer invitations (43).
(78) JJD has submitted the same comments as ITD.
3.6.
UPS
(79) UPS is a global provider of specialised postal and shipping services. After the United States of America, UPS’ biggest market is Europe where it serves 56 countries and territories. Since 1988, UPS is active on the Danish market where it offers domestic, international postal, and logistics services, including express and standard delivery for parcels as well as a range of air, ocean and road freight transport services. UPS claims to compete directly with Post Danmark in the non-universal parcels and postal service and logistics sector.
(80) UPS’ comments overlap largely with those submitted by ITD and other third parties, but there are specific comments related to the MEOP assessment.
3.6.1.
Capital injection from PostNord into Post Danmark
(81) Firstly, UPS claims that the assumed growth rate in the DCF calculations may be validated by comparing it properly to that of the postal and logistics sector as reported in a number of research papers and other sources (44).
(82) UPS also suggests that PostNord’s ability to accurately forecast the expected results on specific targets such as the revenue growth rate and EBIT of the company should be questioned. The latter could be assessed by ‘back-testing’ the historical plan to actual results for those targets.
(83) In addition, UPS claims that additional borrowing costs, as a result of a downgrading, should be included in the DCF, not only in the bankruptcy scenario in absence of PostNord’s capital injection, but also in the scenario where PostNord’s capital injection takes place. UPS considers that this would be in line with the Danish authorities statement that PostNord’s credit rating could also deteriorate as a consequence of the capital injection in Post Danmark.
3.6.2.
Capital injections from Denmark and Sweden into PostNord
(84) UPS claims that in order to determine whether Denmark and Sweden’s capital injections would be made by a private investor, a more detailed assessment of the alleged additional borrowing costs resulting from PostNord’s credit downgrade should have been conducted. That assessment should then have taken into account expected future funding needs in the form of a forecasted cash flow analysis and an overview of existing debt.
3.7.
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