Since the start of the 2008 financial year, we have been reporting on the Deutsche Post retail outlets in the MAIL Division. In view of structural changes in the way costs are allocated in connection with the unbundling of the SERVICES Division, we have restated the prior-year figures. Our segment reporting reflects the change in responsibility for the Corporate Information Solutions Business Unit (Williams Lea), which is now reported on as part of the new SUPPLY CHAIN/CIS Division.

In the second quarter of 2008, revenue rose by 1.6% year-on-year, thus, at €7,051 million, reaching the high level of the previous year for the full reporting period. Negative currency effects arose in the amount of €55 million.

The German letter mail market was fully liberalised at the start of the year. Revenue in the Mail Communication Business Unit declined from €3,038 million to €3,000 million. The increasing use of electronic means of communication is resulting in ongoing shrinkage of the market. Although competition is becoming more intense, we have secured market share with competitive products and services and gained back lost customers. The decline in volumes in the first quarter was offset by volume growth in the second. This should be viewed in light of the fact that the first quarter was two working days shorter than in 2007, whereas the second quarter was three working days longer. In the regulated mail sector, we kept prices stable although the inflation rate underlying the price-cap procedure increased.

Performance in the Dialogue Marketing Business Unit is being shaped by the current trend amongst companies in Germany to restrict advertising expenditures. Although the volume of addressed and unaddressed advertising mail rose, half-year revenue in this unit fell year-on-year by 1.9% to €1,377 million (previous year: €1,403 million) due to a change in conditions under which discounts are offered.

Revenue in the Press Services Business Unit increased by 0.7% to €415 million. Although both the number of pages and the weight of newspapers and magazines have decreased because their advertising content is diminishing, the average prices achieved for these items nonetheless increased.

The Parcel Germany Business Unit pushed up its revenue by 1.2% year-on-year, from €1,214 million to €1,228 million. The growing significance of e-commerce is reflected here in the increased sales volumes with our business and private customers. By contrast, traditional mail-order companies are suffering from the economic trend in Germany – their sales volumes are dropping.

With around 14,000 outlets, we have one of the densest networks of fixed-location retail outlets in Germany, where our customers are able take care of their postal and often banking needs. We are continually expanding our network to make access to our services as simple as possible for customers. Revenue generated by the outlets fell from €418 million to €393 million, mainly due to a reduction in internal revenues.

Despite negative currency effects of €55 million, revenue in the Global Mail unit rose by 4.1% to €1,022 million (previous year: €982 million). We made progress in international mail business by way of volume increases in the United States domestic market, amongst other things.

Profit from operating activities (EBIT) in the first half of 2008 fell by 5.0% year-on-year, from €958 million to €910 million, mainly due to higher costs and the market environment described. Operating cash flow amounted to €600 million; the return on sales was 12.9%.