Since the start of 2007, we have been reporting on the Parcel Germany unit in the MAIL Division. The prior-year figures have been restated accordingly.

In the first nine months of 2007, revenue in the division rose by 1.0% to €11,175 million (previous year: €11,061 million). As in the preceding quarters, we more than compensated for the anticipated decline in revenue in the Mail Germany segment through increases in the Global Mail/Corporate Information Solutions business. Currency effects were negligible.

Revenue in the Mail Communication Business Unit declined from €4,666 million in the previous year to €4,451 million. The decrease was less pronounced in the second and third quarters than in the first, even though conditions remained unchanged. The increasing use of electronic means of communication is resulting in ongoing shrinkage of the market, whilst at the same time competition is becoming more intense. Volumes continued to decline throughout the reporting period; amongst other things, the period was 0.7 working days shorter than in 2006.

In the regulated mail sector, we kept our prices stable, although the inflation rate that underlies the price-cap procedure increased. Furthermore, we lowered our rates for formal delivery orders, secured market shares with competitive products and services and won back lost customers. We substantially reduced expenses thanks to strict cost management.

In the Direct Marketing Business Unit, the trend towards higher-quality services is continuing. In addition, as in the second quarter, the volume of unaddressed advertising mail rose favourably in the period from July to September, which resulted in quarterly revenue growth for the business unit of a good 2.7%.

At €606 million, revenue of the Press Distribution Business Unit in the reporting period remained on a par with the previous year.

The Parcel Germany Business Unit reported revenue of €1,810 million (previous year: €1,838 million). After we substantially lowered prices for our customers in summer last year, our sales volumes picked up in the fourth quarter of 2006 and have continued to rise. In the third quarter of 2007, revenue was also higher than the prior-year figure.

In the first nine months of 2007, revenue at Global Mail/Corporate Information Solutions (Williams Lea) rose by 15.7% to €2,373 million (previous year: €2,051 million). Whilst revenue declined in the international mail business following our elimination of unprofitable customer contracts in America and a decrease in import shipments from the Netherlands, we substantially increased this unit’s business again overall. The key factor was the inclusion of Williams Lea as at 1 April 2006, which yielded inorganic effects totalling €301 million.

The increase in international mail business is mainly driven by inorganic growth, especially the integration of Mercury in the third quarter of 2006.

Profit from operating activities (EBIT) fell by 10.3% to €1,264 million (previous year: €1,409 million), since, amongst other things, the reporting period was 0.7 working days shorter and because of our price reductions in the Parcel Germany business in 2006. The figure for the third quarter of 2006 also contained €66 million attributable primarily to the settlement with the Federal Posts and Telecommunications Agency, which gave rise to reimbursement of the payments already made for financial years 1997 to 2003. Disregarding this effect, the variance from the prior-year figure is appreciably smaller than disclosed here. The return on sales was 11.3%.