On 8 November 2007, the Group initiated its Roadmap to Value, an extensive capital markets programme geared to achieving a sustained increase in enterprise value. The idea is to improve profitability, increase cash generation and give shareholders a larger stake in the Group’s ensuing positive development, based on organic growth. Investors and analysts are to receive extensive information that will enable them to assess the Group’s performance reliably.

Improving profitability

The central focus of the programme is to increase profitability. We plan to increase the profit from operating activities (EBIT) by €1 billion by the end of 2009 – through actions taken in the operating business and through further cost savings.

Increasing cash generation

In future, cash generation will be more central to our strategy than ever before. The Group plans to reduce its net working capital by €700 million by the end of 2009. In addition, we aim to free up at least €1 billion in cash through the disposal of real estate in the next 24 months. In January 2008, a new performance metric, EBIT after asset charge, was introduced as an expression of this value-driven approach. As we move forward, management incentives will be tied to this metric.

Value-added for investors

In a move to give our shareholders a larger stake in the value we create, we will be proposing that the dividend for 2007 be increased by 20% to €0.90 per share. We plan to increase the dividend again in the coming years – broadly in line with the anticipated growth in net profit excluding non-recurring effects.

Transparent figures

The Group is committed to improving the transparency of its reporting. The unbundling of the SERVICES Division and the allocation of all Global Business Services costs to the operating units will illustrate more clearly the profitability of the individual segments.

Organic growth

We intend to use the strong platform we have built in recent years as a springboard for organic growth. The strengths we have already established in high-growth regions – e.g. Asia Pacific and Eastern Europe – enable us to participate in their expansion. The construction of our new hub in Shanghai is to be seen as an expression of our confidence in Asia’s sustainable growth potential. The rate of growth in the LOGISTICS Division, which has been significantly outperforming the market since 2005 despite the integration of Exel, further reflects our strong position in rapidly growing markets. Spending on company mergers and acquisitions has thus been capped and the criteria for such takeovers have been tightened. Acquisitive investments have already fallen substantially.

We laid a foundation stone for further, sustainable growth when the First Choice programme was launched back in 2006. Its aim is to improve our performance systematically at every point of contact with our customers – from sales through customer centres and the internet to the mail carriers. For us, the programme is a tool for fostering even greater loyalty amongst our customers. In the reporting period, almost 900 initiatives in 116 countries were rolled out and, in some cases, completed within the framework of the programme. In the mail business, for instance, 350 new service managers were employed and Postbank has equipped its branches with mobile counter units in order to reduce waiting times. First Choice remains a key component of our growth strategy. We now intend to focus on smaller countries whilst at the same time integrating employees more closely into the programme.