Business development expectations for 2008 and 2009

The following expected results for the divisions are based on the reporting structure for financial year 2007. After unbundling the SERVICES segment we will adjust this outlook for the divisions where appropriate.

For 2008, the Board of Management expects a profit from operating activities (EBIT) of around €4.2 billion. We expect the MAIL Division to generate EBIT of around €1.9 billion. The EXPRESS Division will probably reach EBIT of around €0.65 billion, whilst EBIT at the LOGISTICS Division is likely to amount to around €1.05 billion. For the FINANCIAL SERVICES Division, the Board forecasts EBIT of at least €1.15 billion and for the SERVICES segment it expects a loss of no more than €0.6 billion.

Overall, the Group is aiming for EBIT of about €4.7 billion in 2009. For the mail business, there is a high degree of confidence that a maximum of between 10% and 20% of EBIT will be affected by the full opening of the German mail market, compared with the 2006 level. Thus the company expects the MAIL Division to reach EBIT of between €1.65 billion and €1.85 billion for 2009. For the EXPRESS Division, Deutsche Post forecasts EBIT of between €0.9 billion and €1.1 billion. For the LOGISTICS Division, EBIT of between €1.15 billion and €1.25 billion is forecast, whilst the FINANCIAL SERVICES Division expects EBIT of at least €1.2 billion.

Please refer to Deutsche Postbank AG’s annual report for details of Postbank’s business development expectations.

Future dividend

In the following years, the Group intends to increase dividends broadly in line with underlying earnings growth. In addition to that the Group will consider other methods of cash return, such as share buybacks once proceeds from asset disposals reach €1 billion.