Cautionary note with regard to “forward-looking statements”
Some statements in this annual report are “forward-looking statements”. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside of TNT’s control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industries in which TNT operates and TNT management’s beliefs and assumptions about future events.
You are cautioned not to put undue reliance on these forward-looking statements, which only speak as of the date of this annual report and are neither predictions nor guarantees of future events or circumstances. TNT does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this annual report or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
Introduction and financial highlights
This is TNT’s annual report for the financial year ended 31 December 2007, prepared in accordance with Dutch regulations. Since TNT delisted its American Depositary Receipts from the New York Stock Exchange on 18 June 2007, and its reporting obligations with the United States Securities and Exchange Commission terminated 90 days later on 16 September 2007, TNT is no longer required to file its annual report on Form 20-F. This annual report reflects that, as, for example, there are no references to Form 20-F and information that only needed to be provided on the basis of US law, and not required by Dutch law, has not been inserted. TNT will continue to publish its annual report and communications in accordance with the US Securities Exchange Act on its corporate website, group.tnt.com. Also, where TNT thinks it is helpful, certain information is retained for comparative purposes. In this way TNT intends to provide its stakeholders with a clear overview of its financial year 2007.
Unless otherwise specified or the context so requires, “TNT”, the “company”, the “group”, “it” and “its” refer to TNT N.V. and all its group companies as defined in article 24b, book 2 of the Dutch Civil Code.
TNT has its seat in the Netherlands, which is one of the Member States of the European Union (EU) that has adopted the euro as its currency. Accordingly, TNT has adopted the euro as its reporting currency. In this annual report the euro is also referred to as “€”.
As required by EU regulation, as of 2005 TNT’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
Selected financial data
The selected financial data below have been derived from TNT’s audited consolidated financial statements and the related notes included in chapter 8 of this report.
TNT has acquired a number of companies and businesses during the years, which limit the comparability of its year-on-year figures.
| Year ended and position at 31 December | ||||
| Selected financial data | 2007 | 2006 | 2005 | 2004 |
| Statements of income | ||||
| Total revenues | 11,017 | 10,060 | 9,329 | 8,827 |
| Other income | 75 | 65 | 38 | 8 |
| Salaries and social security contributions | (3,608) | (3,384) | (3,318) | (3,216) |
| Depreciation, amortisation and impairments | (349) | (318) | (303) | (296) |
| Other expenses | (5,943) | (5,147) | (4,598) | (4,213) |
| Total operating expenses | (9,900) | (8,849) | (8,219) | (7,725) |
| Total operating income | 1,192 | 1,276 | 1,148 | 1,110 |
| Profit before income taxes | 1,099 | 1,223 | 1,146 | 1,092 |
| Profit for the period from continuing operations | 783 | 828 | 770 | 720 |
| Profit/(loss) from discontinued operations | 206 | (157) | (109) | 32 |
| Profit attributable to the shareholders | 986 | 670 | 659 | 752 |
| Ratios | ||||
| Operating margin (%) 1 | 10.8 | 12.7 | 12.3 | 12.6 |
| Average number of outstanding shares (in millions) | 383.0 | 420.7 | 454.4 | 473.4 |
| Earnings per ordinary share (in cents) 2 | 257.4 | 159.3 | 145.0 | 158.9 |
| Earnings from continuing operations per ordinary share (in cents) | 203.6 | 196.6 | 169.0 | 152.1 |
| Earnings from discontinued operations per ordinary share (in cents) | 53.8 | (37.3) | (24.0) | 6.8 |
| Average number of outstanding shares on diluted basis (in millions) | 385.1 | 423.9 | 456.4 | 474.0 |
| Earnings per diluted share (in cents) 2 | 256.1 | 158.1 | 144.4 | 158.7 |
| Earnings from continuing operations per diluted share (in cents) | 202.6 | 195.1 | 168.3 | 151.9 |
| Earnings from discontinued operations per diluted share (in cents) | 53.5 | (37.0) | (23.9) | 6.8 |
| Dividend per share (in cents) 3 | 85.0 | 73.0 | 63.0 | 57.0 |
| Dividend pay-out ratio (%) 4 | 33.0 | 45.8 | 43.4 | 35.9 |
| Balance sheets | ||||
| Non-current assets | 4,823 | 4,277 | 3,663 | 5,070 |
| Current assets | 2,252 | 2,122 | 2,355 | 3,159 |
| Assets held for sale | 10 | 409 | 2,378 | 0 |
| Total assets | 7,085 | 6,808 | 8,396 | 8,229 |
| Equity | 1,951 | 2,008 | 3,279 | 3,344 |
| as % of total liabilities and equity | 27.5 | 29.5 | 39.1 | 40.6 |
| Non-current liabilities | 2,232 | 2,112 | 1,608 | 2,221 |
| Current liabilities | 2,902 | 2,542 | 2,279 | 2,664 |
| Liabilities related to assets classified as held for sale | 0 | 146 | 1,230 | |
| Total liabilities and equity | 7,085 | 6,808 | 8,396 | 8,229 |
| Cash flow statements continuing operations | ||||
| Net cash from operating activities | 643 | 857 | 969 | 690 |
| Net cash used in investing activities | (8) | 1,068 | (262) | (266) |
| Net cash used in financing activities | (635) | (2,152) | (768) | (298) |
| Changes in cash and cash equivalents | 0 | (227) | (61) | 126 |
| Cash flow statements discontinued operations | ||||
| Net cash from operating activities | (19) | (63) | 43 | 268 |
| Net cash used in investing activities | 4 | (30) | (22) | (24) |
| Net cash used in financing activities | 16 | 36 | 8 | (202) |
| Changes in cash and cash equivalents | 1 | (57) | 29 | 42 |
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