Product Academy

Express Services and Express Competition

July 2008

TNT Express portfolio overview

New Portfolio 9:00 Express 10:00 Express Europe Intl Europe Domestic ROW Intl ROW Domestic

12:00 Express
Express 12:00 Economy Express Economy Express
1) 2)

( )

1)

2)

Available only in certain domestic markets where geographically an equivalent speed to Express can be achieved Development of these capabilities or transition to these products depends on country in question

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TNT Express versus Competition

Some variations exist by country

Sameday Dedicated/Special Express 8:00 Express 9:00 Express International 10:00 Express 12:00 Express Express 12:00 Economy Economy

Express Plus 8:30 Express Plus 9:00 Express 10:30 Express 12:00 Express Saver Expedited Standard

Sameday Express 9:00 Express 10:30 Express 12:00 Express W orldwide Import Express Europlus Economy Select Europack

International First International Priority International Economy International Express 10kg and 25kg Box Europe First N ext-day Courier International N ext Flight International Premium EuroO ne

Domestic

Sameday Dedicated/Special Express 8:00 Express 9:00 Express 10:00 Express 12:00 Express Express 12:00 Economy Economy

Express Plus 8:30 Express Plus 9:00 Express 10:30 Express 12:00 Express Saver 12:00 Express Saver EO BD* Expedited Standard

Sameday Express 9:00 Express 10:30 Express 12:00 Express 18:00 Europlus

N ext Flight 1day Freight Priority O vernight 2 day

* End of business day

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TNT Express versus Competition

Total Revenue (2007, million) Revenue growth 2006-07 Countries (& territories) served Number of vehicles Number of aircraft

6,551 13.8% 200 26,760 47

34,268 4.4% >200 93,637 579

13,874 3.1% >220 72,000 350

19,327 8.5% >220 44,300 677

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TNT Common Features International

Features All products Current provision

Door-to-door transportation
Collection on demand, within business hours Specified transit time / delivery day Customs clearance (where applicable) Two delivery attempts Available as export and import / receiver pays Optional services to cater for customers needs Online booking tools (PC and webbased) Online Track & Trace visibility of consignment status Free of charge packaging materials 24/7 customer support, worldwide Pro-active notification in case of delivery issues Proof of delivery

Yes
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes CS proposition to offer as standard feature POD with receiver signature (within 24 hrs) being developed Yes Sell as an option

Premium

Money back guarantee Free Insurance

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TNT product & option codes

Global Link International Domestic

Product

9:00 Express
10:00 Express 12:00 Express Express 12:00 Economy Express

G09D/N
G10D/N G12D/N G15D/N G412

D09 or 09D/N
D10 or 10D/N D12 or12D/N D15 or15D/N D412 1)

Economy Express
Option Insurance

G48N
IN

D48N 1)
IN

1) 2)

As and where required Codes to be used once we migrate to Common Systems

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Weights & dimensions

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9:00 Express

Guaranteed delivery before 9 am on the next (or earliest possible) business day
Specifications Collection Transit speed Delivery time Within business hours Next (or earliest possible) business day Current

Guaranteed by 9 am From 180+ countries to major cities in 47 countries Availability worldwide Money back guarantee Yes, price difference to Express service level received Type of cons accepted Documents, parcels and freight Weights & dimensions As per table

Dangerous goods
Dry ice Options: - Insurance

Not accepted
Not available Optional, at additional cost

- Notification of delivery Sold as an option

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9:00 Express continued

Benefits

Time guaranteed for urgent shipments that need to be delivered before 9:00 am Wide global coverage to major cities in 47+ countries worldwide Can be invoiced to receiver, i.e. the receiver pays for the transportation charges, duties and taxes Defined rate card for both import and export, allow customers to better control and manage their costs Full visibility on Track and Trace from pick up to delivery, allowing customers better planning Round the clock customer services Wide range of packaging

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10:00 Express
10:00 Express

Value proposition

Positioned as start-of-day service, similar to 9:00 Express, but where customers find 10 am is early enough Companies or offices who require urgent delivery of shipment at start of business day, but who open after 9:00 am New 10:00 Express (Y) zone to be created, with wider coverage than 9:00 Express (X) and less than 12:00 Express (A) Same routing and PUD delivery as 9:00 Express As per pricing guidelines Same as 9:00 Express

Target customer

Zoning Operations Rates NCS charges

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10:00 Express continued

Guaranteed delivery before 10 am on the next (or earliest possible) business day
10:00 Express Within business hours Next (or earliest possible) business day Guaranteed by 10 am From 180+ countries to major cities in 50+ countries worldwide Yes, price difference to Express service level received Documents, parcels and freight Same as 9:00 Express Same as 9:00 Express : Not accepted Same as 9:00 Express : Not available Insurance Arrival notification (being developed and to be rolled out)

Specifications Collection Transit speed Delivery time Availability Money back guarantee Type of cons accepted Weights & dimensions Dangerous goods Dry ice Options:

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10:00 Express continued

Benefits

Time guaranteed for urgent shipments that need to be delivered before 10:00 am Wide global coverage to major cities in 50+ countries worldwide Can be invoiced to receiver, i.e. the receiver pays for the transportation charges, duties and taxes Defined rate card for both import and export, allow customers to better control and manage their costs Full visibility on Track and Trace from pick up to delivery, allowing customers better planning Round the clock customer services Wide range of packaging

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12:00 Express

Guaranteed delivery before 12 noon on the next (or earliest possible) business day
Current Within business hours Next (or earliest possible) business day Guaranteed by 12 noon

Specifications Collection Transit speed Delivery time

Availability

From 180+ countries to major cities in 66 countries worldwide

Money back guarantee Yes, price difference to Express service Type of cons accepted Documents, parcels and freight Weights & dimensions Dangerous goods Dry ice Options: - Insurance Optional, at additional cost As per table Not accepted Yes

- Notification of delivery Sold as an option

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12:00 Express continued

Benefits Time guaranteed for urgent shipments that need to be delivered before 12:00 pm Wide global coverage to major cities in 70+ countries worldwide Can be invoiced to receiver, i.e. the receiver pays for the transportation charges, duties and taxes Defined rate card for both import and export, allow customers to better control and manage their costs Full visibility on Track and Trace from pick up to delivery, allowing customers better planning Round the clock customer services Wide range of packaging

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Express

Delivery before close of business on the next (or earliest possible) business day
Current Express Within business hours Next (or earliest possible) business day

Specifications Product name Collection Transit speed

Delivery time
Availability

Delivery within business hours

220+ countries worldwide

Money back guarantee No

Type of cons accepted Documents, parcels and freight

Weights & dimensions As per table Dangerous goods Dry ice Options: Yes Yes Insurance Arrival Notification All other options will continue as today
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Express continued

Benefits Specific door to door transit time / delivery day Widest coverage to anywhere in the world (more than 220 countries) Can be invoiced to receiver, i.e. the receiver pays for the transportation charges, duties and taxes Defined rate card for both import and export, allowing customers better planning Round the clock customer services Wide range of packaging

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12:00 Economy Express

12:00 Economy Express Value proposition Routings Zoning Operations Rates NCS charge Positioned as Economy service, but addressing those recipients who require a guaranteed morning delivery. Shipped on Economy Express routes (intra Europe) and delivered on 12:00 Express PUD rounds Coverage equal to X, Y and A-zones where road linehaul arrivals support the proposition Weights and dimensions are identical to 12:00 Express As per Pricing Guidelines Same as Economy Express

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12:00 Economy Express continued

Economical express delivery before 12 noon on a scheduled business day

Specifications Collection Transit speed 12:00 Economy Express Within business hours Typically 1-3 days longer than Express

Delivery time Availability Money back guarantee Type of cons accepted Weights & dimensions Dangerous goods
Dry ice Options:

Guaranteed by 12 noon Initial phase in ERN only (Intra Europe)

Yes, price difference to Economy Express service Parcels and freight Same as 12:00 Express No No

Insurance
Arrival notification
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12:00 Economy Express continued

Benefits

Unique proposition Economical alternative for sending shipments that are less urgent, but require to be delivered in the morning Intra Europe coverage of 40 destinations Cost advantage at slower speed with the benefit of a guaranteed delivery before 12 noon Can be invoiced to receiver, i.e. the receiver pays for the transportation charges, duties and taxes Defined rate card for both import and export, allowing customers better planning Round the clock customer services Wide range of packaging

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Economy Express

Economical express delivery for less urgent shipments before end of local business hours on a scheduled business day
Specifications Collection Transit speed Delivery time Availability Money back guarantee Weights & dimensions Type of cons accepted Dangerous goods Dry ice Options: Economy Express Within business hours Typically 1-3 days longer than Express Delivery within business hours Worldwide coverage depending on origin location No As per table Parcels and freight Yes Yes Insurance Arrival notification
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Economy Express continued

Benefits

Economical alternative for sending shipments that are less urgent All shipments delivered on a specified scheduled day Worldwide coverage from Europe to more than 220 countries, otherwise refer to regional coverage Can be invoiced to receiver, i.e. the receiver pays for the transportation charges, duties and taxes Defined rate card for both import and export, allowing customers better planning Round the clock customer services Wide range of packaging

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Insurance (specifications)
o

Simple service specifications o Create insurance specifications that are easy to understand, both for customers and Customer Service staff, thereby increase service awareness One comprehensive service
o

Customer can chose one complete insurance service Optimized and short internal process to enable sales to grow UPS and FedEx only offer Declared value (liability only)

Efficient internal process

Competitor advantage

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Insurance (new specifications)

Insurance Offered by
Countries that can sell insurance

Enhanced Liability
Countries restricted from selling insurance

(There are geographical limitations for high risk countries. Refer to Group Insurance Manual.)

Service definition

Customers may purchase Insurance from TNT for the full value of their shipment (doc and non-doc) to cover against all risks of loss and damage during carriage, even in the event when TNT is not responsible for the loss or damage.

Customers may purchase Enhanced Liability from TNT to cover their shipments to a higher level than defined by the industry standards, against risks of loss and damage mainly caused by TNT during carriage (but in most cases larger coverage than defined in T&C).

Maximum insured value

Non-document shipments can be insured up to the value of 25000 Document shipments can be insured up to the value of 500 For all shipments with a higher value than the maximum limit, customers should contact TNT Customer Service, which then liaises with the local insurance manager for an agreement.

Exceptions

Some exceptional events are not covered by insurance as for example loss or damage caused by insufficient packaging, loss or damage caused by delay as well as consequential loss or damage. Shipments & Type of consignments insured: Goods > Compensation is the cost of repair or cost of replacement compensation Documents > Compensation is the reconstruction cost and/or loss of bank interest

Charge Availability Option code

The Insurance/Enhanced Liability charge should be calculated as a % of the goods/docs value with a minimum amount (draft statement, to be confirmed by pricing guidelines) As option with all products IN
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Insurance (new specifications)

Old Insurance
Maximum Insured value
Depending on the country

New Insurance
25000 standard maximum for nondocuments 500 standard maximum for documents Higher insurance possible on agreement Documents and Non-Documents

Shipments

Non-documents only

Cost of repair or cost of replacement

Compensation

Cost of repair or cost of replacement + Loss of bank interest

Availability

Included in Premiums Option on Express and Economy Express

Option on all products

Option code

IN or ID

IN

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Summary of Insurance changes

Insurance coverage is extended to documents The liability is limited to 500 for documents and 25000 for non-documents Countries restricted from selling Insurance will offer Enhanced Liability instead Insurance will be available as option with all products To avoid confusion and cannibalisation, ITLL as option has been discontinued
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Insurance & connote

Insurance
For documents and non -documents subject to condition 16 on reverse Currency X

Please provide insurance details

Insured amount for non-documents only Insured amount for non -documents

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Premium Feature - Money Back Guarantee

Rephrased Terms & Conditions : Money Back Guarantee, in case of late delivery : Reimburse price difference with actual comparable service (Express or Economy) Reactive i.e. only if claimed by customer
Money Back Guarantee
Premium service booked (1) 9:00 Express Actual delivery time Between 9 am and 10 am Between 10 am and 12 noon After 12 noon or later date Between 10 am and 12 noon After 12 noon or later date After 12 noon After 12 noon Actual service received (2) 10:00 Express 12:00 Express Express 12:00 Express Express Express Economy Express
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Calculation of compensation Price difference between (2) and (1)

10:00 Express 12:00 Express 12:00 Economy Express