It’s our business to deliver yours.

Pieter Kunz

Beyond the set-up of traditional postal delivery chains: Looking forward is the only real option!

TNT Post, think beyond traditional logistics

We can read your mind ………………….

We print it ……………. and

We will deliver it the day before !

TNT Post growth strategy

• Build position in key markets in Europe to become the number onechallenger in each of these countries in the domestic mail market

• Develop a portfolio of services to offer customers a real alternative including innovative solutions to differentiate from the incumbents

• Grow on average 18 % per year to deliver 1,7 bln euro revenue in 2012 with a Ros of 10 %

• First priority countries Germany, UK and Italy

• Second priority countries, Benelux, Austria, Eastern Europe

• Explore further geographical expansion in France and Eastern Europe

Beyond the traditional domestic bordersEMN expansion so far

41

EMN – the mail growth engine

10%Operating margin

€ 1.3 billionAddressed revenues

€ 1.7 billionTotal revenues

0

500

1.000

1.500

2.000

2004 2005 2006 2007 2008 2009 2010 2011 2012

Revenues€ million

Unaddressed

Addressed mail +related services

Target 2012 Target 2012 CAGR 18%

Beyond the traditional domestic bordersEMN ambition

Market Focus B to C/B, in a later stage also C to …

C2CC2B

B2B B2C28% of market volume

62% of market volume

Price

Customer needs

flexibility100%

householdcoverage

tracking

& tracing

full serviceprovider

defined quality& service level

deliveredon time

We challenge ourselves

Delivering ValueNo.1

ChallengerThe Premium

Challenger

Our positioning

The Entry model

* VAT exempt.

Mainsectors

Retail

Mail order

Telco

Utility

Financial

Government

International mail

“De facto”liberalisation in time

Free

Limited

Very limited

time

Unaddressed

In all countries major position

Customer base well developed

Transaction mail

First steps based on licences in UK Germany, Italy

Addressed DM

Non priority service in place

Presence in market facilitates further market entry over

time

Mail markets

*)

*)

UK 4 Pillar Strategy

PartnerBuild

Downstream Access

Royal Mail

Un/presorted & large letters

Packets and Parcels

Packets and parcels

End to End

Letters

TNT PostCourier Network

Royal MailVan Network

Unaddressed(Doordrop media)

Leaflets, brochures,samples, directories

Royal Mail / TeamsFree newspapers

Organic growth Organic growth Organic growthPartnerSt

rate

gyC

hann

elC

ateg

ory

Busi

ness

HUMAN RESOURCES INFORMATION TECHNOLOGY MARKETING FINANCE SECURITY LEGAL

Shar

ed

Serv

ice

Cen

tre

Pillar 2: Consolidation

Small customers

Medium size customers

Large (national) customers

1. Collect and Transport of unsorted mail

3. Transport of sorted mail to Royal Mail (DSA)- 69 Mail Centres

2. Sorting Machines (at TNT UK depots)

4. Distribution and delivery by RM- 1400 Delivery offices

3.3

Pillar 3: End to End3.3

E2E acceleration

Accelerate sales coverage and revenue growth by expanding the E2E entrepreneurial organisations to the 5 largest conurbation areas in the UK by mid 2007.

Set-up a TNT Post branded E2E delivery networkcovering 12 mln households by 2012.

Germany 4 Pillar Strategy

Growth in selected areas

Partnerships outside

AddressedLast Mile

(Regioservice)

Owned & sharednetworks

Regional / Local SME’s and authorities

AddressedConsolidation

(PostCon)

DAX-companiesSME’s and authorities

Unaddressed(Direktwerbung)

Retail, FMCGDirect Mailers

TNT Post / Partners

DPAGFuture: TNT Post

AddressedNational Sales

(TNT Post AG)

Telco’s, Mail OrderFinancials, Utilities

CBM

Third party Networks &TNT Post

Organic growthOrganic growth

AcquisitionsJV’s

Organic growth

Stra

tegy

Cha

nnel

Cat

egor

yBu

sine

ss

STRATEGY BUSINESS CONTROL/FINANCE HRM ICT MARKETING PR/PA LEGAL

Hol

ding

/ SSC

Alternative business setup

Addresses stored in databases create the opportunity to sort mail before it is printed.

Attackers therefore develop pre-sorting software.

Traditional sorting incumbents of already printed mail.

Geo coder Printing sorting mail

Bundling PostmanDatafile

• Traditional sorting process of incumbents

Sorting center(first sort)

Sorting centerSorting center(second sort)

Delivery depot

• Attacker networks prefer to sort data

Beyond the set-up of traditional postal delivery chains: new sorting structures

The process without sorting centres

EP

TNT

DEBGE Privat1234 0404123456

K2345 Menge: 186 Gewicht: 5022 X11892 1 020 A

EssenBerlin

Stuttgart

Hamburg

Frankfurt

München

Köln

Mannheim

Düsseldorf

NürnbergHannoverSaarbrücken Bremen

LeipzigAachen

KarlsruheBielefeld

BarmstadtMönchen

ChemnAugsbFreibHallBraKoRKK

DresdenWiesbadenBonn

BambergBad Kreuzna

Wuppertal

GE Strategy: Being strong in the high density area’s and co-operate with partners

Italy 4 Pillar Strategy

Unaddressed

Acquisition

B2Cparcels

Value added E2EBasic parcels

TNT Post PartnersTNT Post

LeafletsSamples

Organic growthConsolidation

Mail Related

Production (DM and ordinary mail)

Mailroom management

TNT Post

Support toAddressed

Stra

tegy

Cha

nnel

Cat

egor

yBu

sine

ss

HUMAN RESOURCES INFORMATION TECHNOLOGY MARKETING FINANCE LEGAL

Shar

ed

Serv

ice

Cen

tre

Addressed

Ordinary Mail, Direct Mail, Registred Mail,

Self delivery, Notification

TNT Post Partners

Organic growthAcquisitionPartners

Unaddressed

Formula Certa Flows

CHECK IN LABELLINGDELIVERY WITH GPS SYSTEM

INFORMATION TO CLIENTS

REGISTRATION OF THE MAIL

• Delivered by the customer

• Picked – up by TNT Post

1.Database from customer

2. Letters with barcode (with or without Database)

3.Letters without barcode\

1.Printing-Enveloping –Printing barcode

2.Barcode is associated to the image of the envelop (if Database not available)

3. Barcode is printed on the labels and applied on the envelops

• Sorting:

- Per postman round

- Is done automatically

• With a portable barcode reader postman reads the barcode on the letter before dropping the mail

• GPS system associates date, time and geographical coordinates to the address of delivery/Barcode reading

Back to the office, Postman

• Connects its portable device to the central server for the registration of information (via FTP)

• Registers undelivered mail, change of address etc

• Dataprocessing

Notification made via

• WEB connection, as ASP intranet or internet

•Via FTP/HTTP

DOWNLOAD RESULTS

Customers

AddressedUnaddressed

B2C - Mail Related

Key attention points

• Prevent and or act on cross-subsidisation, market dominance and State aid

• Look after price setting (and changes) and discount structures (kick back fees) in bulk mail

• Solve the VAT• For the regulator, act supportive towards competitors and try to

understand their position to compete with Postal operators• Minimal level of regulation• Involve Business Customers in the discussions• The consumer is not relevant for the success of the

liberalisation/competition • Liberalise the market soon don’t accept any delay after more than a

decade of delays……….Time is running out• If we delay further, a big portion of Mail will become a dying business

Emerging markets in a postal environment

If there is life,… there is mail. If there is mail,……….. we are there !