Since the start of the year, we have been reporting on the Deutsche Post retail outlets as part of 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. The Corporate Information Solutions Business Unit (Williams Lea) is now reported on as part of the new SUPPLY CHAIN/CIS Division. The Pension Service has been transferred from the FINANCIAL SERVICES Division to the mail business as they share a regulatory environment that is almost the same.

Revenue was maintained at the high level of the previous year in the third quarter (€3,409 million) as well as in the full reporting period (€10,498 million). Negative currency effects arose in the amount of €14 million in the third quarter and €69 million in the first nine months.

The German letter mail market was fully liberalised at the start of 2008. Revenue in the Mail Communication Business Unit declined from €4,476 million to €4,431 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 regained lost customers. Sales volumes increased in a year-on-year comparison since the third quarter had one additional working day. 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, revenue for the first nine months of 2008 narrowly reached the high level of the previous year due to changed discount conditions. It dropped slightly from €2,090 million to €2,075 million year-on-year.

Revenue in the Press Services Business Unit increased by 1.0% over the prior-year period, from €606 million to €612 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 0.6% year-on-year, from €1,810 million to €1,820 million. Revenue for the third quarter declined slightly. The growing significance of e-commerce is reflected in the increased sales volumes with our business and private customers. However, traditional mail-order companies are suffering from the economic trend in Germany – their sales volumes are dropping. Volumes remained at the prior-year level in the third quarter.

At around 14,000, we have one of the densest networks of fixed-location retail outlets in Germany, where our customers are able to 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 €623 million to €586 million, mainly due to a reduction in internal revenues.

Despite negative currency effects of €69 million, revenue in the Global Mail unit rose by 2.6% in the first nine months of 2008 to €1,487 million (previous year: €1,449 million). However, third-quarter revenue stagnated year-on-year. 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) increased substantially over the prior-year figures, rising to €844 million in the third quarter and to €1,762 million in the first nine months compared with €305 million in the third quarter of 2007 and €1,270 million in the first nine months of 2007. The increase was mainly due to the earnings contribution of €572 million from the repayment awarded in European Union (EU) state aid proceedings. Without the repayment, EBIT would have fallen in the period under review by 6.3% year-on-year due to the negative impact of increased costs and the aforementioned market environment. Operating cash flow amounted to €1,560 million (previous year: €1,091 million); the return on sales was 16.8%.