Profit 2007 and Underlying Operating Income at Record Levels

18-Feb-2008

Q4 2007 developments

Express record operating income of 188 million euros (excluding Innight)

Mail restructuring charges for Master plans (110 million euros ) and UK Parcels (28 million euros)

Agreement on settlement UK tax matters

2007: year of solid results in line with outlook

Revenues up 9.5%

Underlying profit from continuing operations up 4.5%

Profit at 986 million euros versus 670 million euros in 2006

2007 proposed dividend of 85 euro cents per share (55 euro cents final dividend); dividend per share over 2007 up 16.4%

Phase II Focus on Networks "Grow and Build Value" announced

Clear growth and return objectives for 2008-2012

Outlook 2008 in line with 'Focus on Networks' objectives

CEO Peter Bakker: "2007 has been a good year for the group. In Express, TNT has been able to expand its market share in Europe again. The acquisitions in the emerging markets performed according to our plans and establish unique platforms for the future. Express EBIT increased again and is now at record levels. In Mail, underlying results were solid and largely provided the necessary offset for the declining Mail volumes in the Netherlands. The discussions with the labour unions in the Netherlands on the new Collective Labour Agreement are ongoing in a constructive manner. A provision of 110 million euros for the costs associated with efficiency projects at TNT Post has now been recorded. The liberalisation of mail in Europe is - although planned for 2011 - under serious pressure from the developments in Germany with respect to the minimum wage. This will continue to require our relentless effort in 2008.

For 2008 our outlook is in line with our mid term objectives as presented on 6 December 2007. As the economic outlook is more uncertain, TNT is carefully monitoring this development to be able to respond in an appropriate way if required."