TNT has received a binding offer from French logistics and transport company NorbertDentressangle for the majority of the contract logistics activities and part of the transportation
activities of its French logistics subsidiaries TNT Logistics Holdings SAS and TNT Logistics FranceSARL. Additionally, Management Buy-Out offers have been received for most of the remainder of thetransportation business of the French Logistics business unit. Staff will be informed about thedeals in the next few weeks.The withdrawal, which was announced by TNT CEO Peter Bakker on July 29, will lead to a totalloss relating to the sale and refocus of the French Logistics business unit of up to 140 millioneuros pre-tax, to be booked largely in 2005. The deal means that TNT will withdraw from the highlycompetitive French transport market and focus on premium contract logistics, including supply chainsolutions for the automotive industry and the contract recently awarded by SNCF. This contract willbe implemented from April 2006 onwards by TNT in France and is not part of the business to besold.
TNT Logistics France, created through a series of acquisitions in 2000-2002, has remained inloss for the last three years despite a turnaround programme. In the first half of 2005, it made anoperating loss of 17 million euros on revenues of 117 million euros following a loss of 25 millioneuros on turnover of 258 million euros in 2004. TNT Express France, with revenues of 600 millioneuros, is not affected by the sale.
