TNT at 
a glance


TNT N.V. is incorporated in the Netherlands and is a publicly quoted company. As a holding company, TNT sets the agenda for the group as a whole as well as for the individual divisions. We provide an extended range of services around the world: collecting, sorting, transporting and distributing a wide variety of items within specific timeframes. We also provide all related data services.
Delivery and network management are our core competencies. Whether it concerns a letter to a friend, business parcels to the other side of the world, component parts to car dealers, or line or container shipments across the globe, people and companies around the world depend on our reliable delivery.

* Estimate based on the number of outstanding shares per 26 February 2007.

Source: Bloomberg Professional.

Source: Bloomberg Professional (own currency based).

TNT around the world

For more information regarding our company, please refer to our website http://group.tnt.com and our 2006 annual report.

TNT mission

Our mission is to exceed our customers’ expectations in transferring their goods and documents around the world.

We deliver value to our clients by providing the most reliable and efficient solutions through delivery networks.

We lead the industry by:

• Instilling pride in our people.
• Creating value for our shareholders.
• Sharing responsibility for our world.

To achieve our objective of industry leadership through operational excellence, financial clarity and a strong global brand are prerequisites, as are integrity and proper corporate governance. Yet we place additional emphasis on social responsibility. Efforts on all these fronts improve our reputation with employees, stakeholders and the world, enhance employee pride throughout the company and create value for our shareholders.

Our strategy and social responsibility

Our strategy reflects our ambition of being a leading global network services company. Since social responsibility is an integral part of our business, we have a similar ambition where it concerns our impact on society and the environment. Our best-in-class ranking in the Dow Jones Sustainability Index for the second consecutive year strengthens our belief that we are on the right track.

Our overall business strategy has an impact on our societal and environmental footprint. Although not fully implemented, we are aiming to integrate our social responsibility (SR) approach throughout our strategic decision-making and investment process. We will assess the consequences of options on their social and environmental impact and take them into account when decisions are made.

Our current strategy includes a focus on Asia (China and India). This confronts us increasingly with a society where in our opinion implementing the SA 8000 standard is crucial if we are to comply with OECD and ILO agreements. A significant implication of our strategy is our growth in air transport, which automatically leads to an absolute increase in CO ₂emissions from our operations. In December 2006, the delivery of TNT’s first Boeing 747 was a major step towards becoming the number one carrier between Asia and Europe. In 2006, we grew significantly in India following a major acquisition.

Social responsibility is part of our due diligence questionnaire. Once acquired, new TNT entities must over time of course adhere to our social responsibility policies and practices.

In 2006, we successfully sold our contract logistics business and found a prospective buyer for our freight management operations. Social responsibility aspects played a role in the selection process of the buyers, Apollo Management LD and Geodis respectively, and various works councils were involved in the decision-making process.

We not only take into account the impact of our strategic choices on society: we are increasingly analysing how developments in society influence our strategy.

• What does climate change mean to us? What are the risks and opportunities?
• How does globalisation affect our strategy?

We believe these questions are important for TNT and we will continue our search for the strategic answers.

Integrity programme

TNT is committed to operating its business openly and honestly, guided by the TNT Business Principles. TNT introduced its integrity programme in 2006, leading to greater transparency, openness and trust. Good business ethics wins trust amongst stakeholders.

In 2006, approximately 700 critical managers were trained and tested on the Sarbanes Oxley-related integrity training on the TNT Business Principles, the TNT Whistleblower Procedure and fraud awareness and prevention. The fraud awareness and prevention module has been successfully rolled out as an e-learning tool.

The integrity programme is currently being rolled out across all business divisions, thereby setting out TNT’s ambitions for integrity, outlining the business benefits and introducing the TNT Business Principles and related policies and procedures that are relevant to our organisation.

The approach adopted focuses on creating awareness and understanding of the TNT Business Principles and instilling individual behaviour in accordance with these principles.

In 2007, further roll-out beyond management will take place according to the train-the-trainer principle. Management is responsible for cascading the information down into the organisation so that the entire organisation is exposed to our integrity programme. This will further enhance awareness of and compliance with our TNT Business Principles and related policies and procedures, improve monitoring of ethical behaviour and compliance with law and regulations, and help ensure the Whistleblower Procedure runs smoothly.

For more information, please refer to our website:group.tnt.com/corporategovernance/TNTbusinessprinciples/index.asp

Governance and reporting on our social responsibility

This year, we have further implemented our SR reporting process through the official assignment of tasks and responsibilities. We have also commenced internal SR auditing. For further details on group governance, please refer to our 2006 annual report.

The step-by-step data collection and analysis process is described below.

Save this Table as Excel
STEP	RESPONSIBILITIES
1 Filing source data	Functional BU directors and site representatives
2 Delivering source data to BU SR champion	Functional BU directors and site representatives
3 Validating and filing BU data	BU SR champion
4 Reporting validated BU data to Divisional SR director	BU SR champion
5 Validating BU data	Divisional SR director
6 Providing clarification / resubmitting BU data	BU SR champion / Divisional functional directors
7 Accumulating BU data into divisional figures	Divisional SR director
8 Delivering signed-off divisional data to GHO SR director	Divisional SR director
9 Validating divisional figures	GHO SR director
10 Providing clarification / resubmitting divisional figures	Divisional SR director
11 Filing divisional figures in corporate database	GHO SR director
12 Providing database and divisional figures to external assurance provider	GHO SR director
13 External assurance process	GHO SR director
14 Resubmitting data with potential adjustments to GHO	Divisional SR director
15 Filing adjustments in GHO database	GHO SR director
16 Producing final and approved tables, graphs and analyses	GHO SR director
17 Sign-off final content of the SR report by Group Communications & Social Responsibility	Group director Communications
18 Preliminary review by the Board of Management	Board of Management
19 Review by Public Affairs Committee of the Supervisory Board	Public Affairs Committee
20 Review by the Supervisory Board	Supervisory Board
21 Sign-off final content of the SR report by Board of Management	Board of Management
22 Publication of the SR Report	TNT Group Communications

We consider social responsibility an integral part of both our strategy and our daily operations. This means that managerial responsibilities for SR are aligned fully with our hierarchical structure. Our CEO bears final responsibility for all SR issues. Furthermore, all our managing directors on divisional and business unit level are fully responsible for implementing TNT’s SR policies and for the performance of their own organisational entity. This includes responsibility for implementing the management systems, incorporating SR in contracts with subcontractors, caring for local communities and improving our SR performance.

Mission-related pay

Variable compensation is an important part of the remuneration package for Board of Management members and senior management. This incentive scheme reflects the accountability for our mission by rewarding both financial and non-financial performance as required for sustainable results.

Targets

The Supervisory Board sets the targets for the members of the Board of Management for the mission-related incentive plan at the beginning of each financial year.

For 2007 the following targets will apply:

Financial targets:

• Economic profit
• Earnings
• Revenue growth.

Non-financial targets:

• Exceeding customers’ expectations: continued improvements in our relations with customers, which are measured through customer satisfaction surveys and by assessing the relationship with our customers in person
• Instilling pride in our people: continuous improvement in engaging our staff, which is measured through employee engagement surveys
• Sharing responsibility for our world: making a difference to our environment, which can be accounted for by our global initiatives to reduce the emission of CO2 and our involvement with the United Nations World Food Programme.

The senior management incentive is structured similarly.

Public Affairs Committee

The Public Affairs Committee is a committee of the Supervisory Board that acts as a sounding board and advisory committee for the Board of Management with respect to formulating, developing, monitoring and reporting on the company’s social and environmental policies.

The Public Affairs Committee presents all material findings and recommendations to the Supervisory Board for consideration.

The Public Affairs Committee consists of at least three Supervisory Board members. The Committee discussed TNT’s social responsibility performance three times in 2006.