Pressure on results in European recessionary business environment
Express
• Operational revenue growth 5.9%
• Premium (air) volumes in Europe under increasing pressure in the quarter
• International Economy and Special Services products good revenue growth
• Good performance Emerging Platforms
• Operating income down 21.5% at constant fx
• Cost savings programmes aggressively being implemented
Mail
• Continued strong operational revenue growth Emerging Mail & Parcels
• Mail operating profit in line with outlook
Group
• Group in strong financial position, capital requirements substantially refinanced in August
• Net cash from operating activities YTD Q3 up 8.8%
Outlook
• Outlook Express revised downward
• Outlook Mail reaffirmed

CEO Peter Bakker comments:
“As we had already highlighted in our October 16 trading update the conditions in our European Express business have significantly worsened in September and the first weeks of October. Air volumes in September were down an unprecedented 10%, while Road volumes were showing low growth. We expect this pressure on volumes to persist at least in the current quarter.
On the positive side the Mail business has performed in line with our outlook. Also we refinanced our capital requirements in August, ahead of the deepening of the financial crisis in September and October. This, coupled with our robust cash flow, leaves us on a solid financial footing.
In these times management focus on efficient operations is even more essential. Our Master plans in Mail continue successfully, we are aggressively implementing the announced € 125 million cost optimisation programme in Express, we focus on improving air network efficiencies and we target all other cost areas for savings as well. At our analyst meeting on 4 December 2008, we will provide further details in this respect.”

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