GROUP FINANCIAL REVIEW

As of 2005 all European listed companies are required to prepare their consolidated financial statements in accordance with IFRS as adopted by the European Union. For more details we refer to chapter 12 of our Annual Report.

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As at and for the year ended at 31 December
	2006	2006	2005	2004
	US$	€	€	€
Segmental operating revenues ¹,²
Express	7,933	6,011	5,363	4,963
Mail	5,365	4,065	3,955	3,852
Non-allocated and inter-company	(21)	(16)	11	12
Total operating revenues ³	13,277	10,060	9,329	8,827
Depreciation, amortisation and impairments	420	318	303	296
Total operating income	1,683	1,276	1,148	1,110
as % of total operating revenues	12.7	12.7	12.3	12.6
Profit for the year from continuing operations	1,093	828	770	720
Profit/(loss) from discontinued operations	(207)	(157)	(109)	32
Profit attributable to the equity holders of the parent	884	670	659	752
(in millions, except percentages) 1 Comparative figures have been adjusted to reflect the transfer of Cendris UK from Mail to Express in 2006. 2 For net sales by geographic region see ‘TNT at a glance’. 3 Includes net sales and other operating revenues.

In 2006, we had total operating revenues of €10,060 million

2006

In 2006, we had total operating revenues of €10,060 million. Our Express division accounted for 59.8% of our group operating revenues and 45.5% of our group operating income. Our Mail division accounted for 40.4% of our group operating revenues and 59.6% of our group operating income.

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	Year ended at 31 December
Consolidated group results	2006	2006	variance %	2005	variance %	2004
	US$	€		€		€
Total operating revenues	13,277	10,060	7.8	9,329	5.7	8,827
Other income	86	65	71.1	38	375.0	8
Total operating expenses	(11,680)	(8,849)	(7.7)	(8,219)	(6.4)	(7,725)
Total operating income	1,683	1,276	11.1	1,148	3.4	1,110
as % of total operating revenuesw	12.7	12.7		12.3		12.6
Net financial expense	(62)	(47)		0		(16)
Income taxes	(521)	(395)	(5.1)	(376)	(1.1)	(372)
Results from investments in associates	(8)	(6)	(200.0)	(2)		(2)
Profit for the year from continuing operations	1,092	828	7.5	770	6.9	720
Profit/(loss) from discontinued operations	(207)	(157)	(44.0)	(109)	(440.6)	32
Profit for the year	885	671	1.5	661	(12.1)	752
Attributable to:
Minority interests	1	1	(50.0)	2		0
Equity holders of the parent	884	670	1.7	659	(12.4)	752
Earnings per ordinary share (in cents) ¹	210.1	159.3	9.9	145.0	(8.7)	158.9
Earnings per diluted ordinary share (in cents) ²	208.6	158.1	9.5	144.4	(9.0)	158.7
(in millions, except percentages and per share data) 1 In 2006 based on an average of 420,701,641 of outstanding ordinary shares (2005 :454,367,662; 2004: 473,387,568). 2 In 2006 based on an average of 423,859,222 of diluted outstanding ordinary shares (2005 :456,360,619; 2004: 473,980,149).

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	Year ended at 31 December
Operating revenues by segment	2006	2006	variance %	2005 ¹	variance %	2004 ¹
	US$	€		€		€
Express	7,933	6,011	12.1	5,363	8.1	4,963
Mail	5,365	4,065	2.8	3,955	2.7	3,852
Non-allocated and inter-company	(21)	(16)	(245.5)	11	(8.3)	12
Total operating revenues	13,277	10,060	7.8	9,329	5.7	8,827
(in millions, except percentages) 1 Figures have been adjusted to reflect the transfer of Cendris UK from Mail to Express in 2006.

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Year ended at 31 December
Other income by segment	2006	2006	variance %	2005	variance %	2004
	US$	€		€		€
Express	8	6
Mail	77	58	123.1	26	225.0	8
Non-allocated	1	1	(91.7)	12
Total other income	86	65	71.1	38	375.0	8
(in millions, except percentages)

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				Year ended at 31 December
Operating income by segment	2006	2006	variance %	2005 ¹	variance %	2004 ¹
	US$	€		€		€
Express	765	580	21.8	476	25.9	378
Mail	1,004	761	(1.8)	775	(3.5)	803
Non-allocated	(86)	(65)	36.9	(103)	(45.1)	(71)
Total operating income	1,683	1,276	11.1	1,148	3.4	1,110
(in millions, except percentages) 1 Figures have been adjusted to reflect the transfer of Cendris UK from Mail to Express in 2006.

GROUP OVERVIEW

Total operating revenues increased by 7.8% in 2006 compared to 2005. Operating income increased by 11.1%, mainly due to an increase in our Express business.

Our Express business achieved 12.1% higher operating revenues compared to 2005. The improved performance is broadly based across the continents, but mainly due to continued growth in our international businesses as well as special services and further supported by acquisitions. Express operating income increased by 21.8%, primarily due to substantial volume growth, particularly in the international business across all customer segments, and effective cost control, including further network optimalisation and continued yield improvements.

In our Mail business, operating revenues increased by 2.8% in 2006, mainly due to substantial volume growth in addressed European Mail Networks and partly offset by the continued volume decline in addressed Mail Netherlands. The latter volumes continued to decline due to competition, substitution and substantially fewer bank mailings. The volume decline was strongly mitigated by the product mix and, to a lesser extent, price effects. Operating income of our Mail business decreased by 1.8%. This decrease is mainly due to the continuing expansion of European Mail Networks capacity and rebranding costs and partly offset by positive price mix effects and continued progress in improving productivity and cost control in Mail Netherlands.

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	Year ended and position at 31 December
	2006	2006	2005	2004
	US$	€	€	€
BALANCE SHEETS
Non-current assets	4,985	3,777	3,663	5,070
Current assets	2,800	2,122	2,355	3,159
Assets held for sale	540	409	2,378
Total assets	8,325	6,308	8,396	8,229
Equity	2,650	2,008	3,279	3,344
Non-current liabilities	2,127	1,612	1,608	2,221
Current liabilities	3,355	2,542	2,279	2,664
Liabilities related to assets classified as held for sale	193	146	1,230
Total liabilities and equity	8,325	6,308	8,396	8,229
Net return on equity ¹  (%)	33.4	33.4	22.9	22.5
Equity as % of total liabilities and equity	31.8	31.8	39.1	40.6
CASH FLOW STATEMENTS CONTINUING OPERATIONS
Net cash from operating activities	1,131	857	969	690
Net cash used in investing activities	1,409	1,068	(262)	(266)
Net cash used in financing activities	(2,840)	(2,152)	(768)	(298)
Changes in cash and cash equivalents	(300)	(227)	(61)	126
CASH FLOW STATEMENTS DISCONTINUED OPERATIONS
Net cash from operating activities	(83)	(63)	43	268
Net cash used in investing activities	(40)	(30)	(22)	(24)
Net cash used in financing activities	48	36	8	(202)
Changes in cash and cash equivalents	(75)	(57)	29	42
(in millions, except percentages) 1 The profit attributable to the equity holders of the parent as a percentage of the total equity.