Operational excellence in networks – Tax investigations reach conclusions
Fourth Quarter:
* All-time high margin in Express Segment of 10.3%
– Double digit underlying revenue growth
* Mail achieves 18.8% operating margin
Full Year and ‘Focus on Networks’:
* Strong operating results from continuing activities
– A record 8.9% full year margin in Express Segment
– Mail achieves 19.5% margin, full year
* Dividend up 10.5%, from 57 cents to 63 cents
* Good progress on ‘Focus on Networks’ strategy
– Asian network expansion; Hoau agreement signed today
– Logistics exit on track; division stable during sale process
– € 1 billion share repurchase – € 583 million completed by 22 February 2006
CEO Peter Bakker:
”TNT ended the year with very satisfying results from its network businesses: a record margin inExpress with strong top-line growth and Mail achieving a great margin, thanks to its relentlesspursuit of operational efficiency. It was also good to see next day delivery quality push ahead alittle, to almost 97%.
In December, we launched the “Focus” strategy aimed at exploiting TNT’s operational excellencein network management. The Logistics exit is on track and the business remains stable, testifyingto the professionalism of its people.
I am pleased that the tax investigations have reached conclusions, allowing us to removeuncertainty by announcing the estimated financial impact of the investigations. We take noadditional accruals and the estimated contingent tax liability is € 150 million to € 550 million.”& lt; /p>
