TNT Annual Report and Form 20-F 2006

mr Dirk Hassenstein

mr Dirk Hassenstein
Catalogue Dispatch Division Manager
Otto GmbH & Co KG

With a history of cooperation between OTTO, a wholly-owned subsidiary of the Otto Group, and TNT Express dating back decades, the company has been using TNT in Germany for its sub-1000 grams catalogue delivery for some 4 years. Leveraging the synergies of the joint venture between its own delivery operation Hermes Logistik Gruppe and TNT Post’s Germany-wide coverage, OTTO and TNT Post are together setting up new profiles and services in other domains.

Dirk Hassenstein: “In selecting TNT Post, it was important for us that we were able to create options comparable to the freight market for catalogue carriage under 1000 grams and the delivery of letters. TNT was one of the first organisations to cover the whole of Germany with high delivery quality and the capacity to satisfy our specific needs for high frequency, short timeframes and high circulation. At OTTO, we also appreciate the fact that TNT Post was prepared to enter a new market after years of monopoly by Deutsche Post. A reflection of our own organisation, we admire this entrepreneurial spirit as well as the resulting market competition. Of course, being a global operator ourselves, an added bonus is the fact that we can make use of an existing relationship and global services to meet the needs of our clients worldwide.”

“One of the highpoints of our relationship is that with the TNT Post staff themselves. We have found them very open-minded to our demands and needs. We are working together with great dedication and know-how to build up the structures required for delivering our letters and catalogues. This is a huge challenge. With the current 70% coverage, we have not yet met all our objectives, specifically those of geographic stability and stability over time. Yet we are continuously evaluating and aligning our targets and are convinced we will meet them in the near future. TNT Post has already shown that they are willing to put in the effort and that they are now a real alternative to Deutsche Post.”

“One more thing. We believe that since TNT has sold its Logistics division, it has the opportunity to become a leading market player and accordingly we applaud the sale. It has convinced us that TNT is serious about the German market. We are confident that TNT Post will live up to its promise of developing a first class nationwide distribution network and look forward to a long-term relationship.”