TNT

Total operating revenues increased by 11.0% in 2005 compared to 2004. Operating income increased by 3.9%, mainly due to an increase in our Express business.

In our Mail business, operating revenues increased by 2.4% in 2005, mainly due to substantial addressed volume growth in European Mail Networks, partly offset by the continued decrease in addressed Mail Netherlands volumes (-3.1%). These volumes continued to decline resulting from competition and substitution. Our Mail business in the Netherlands is focused on service quality and margin to defend its market position. Operating income of our Mail business decreased by 3.6%. This decrease is mainly due to a structural cost increase in salaries and social security contributions in Mail Netherlands, partly offset by continued progress in improving productivity and cost control in Mail Netherlands and expansion of European Mail Networks.

Our Express business achieved 8.3% higher operating revenues compared to 2004, mainly due to continued growth in its international businesses. Express operating income increased by 26.4%, primarily due to good volume growth, particularly in the international business across all customer segments, good cost control, including increased utilisation of the European networks, and continued yield improvements.

The operating revenues and operating income of our Freight Management business for 2005 regard the full year and are therefore not comparable to 2004, which only includes the financial results realised after the date of the acquisition of the Freight Management business in August 2004. Our Freight Management operating revenues grew in all regions. Growth in air and ocean volumes contributed positively to operating revenues.