Intangible assets as at 31 December 2005 of €895 million related to our discontinued logistics business is included in assets held for sale. €834 million included in the table above as transferred to assets held for sale represents the balance as at 1 January 2005 and does not reflect the movements (mainly related to foreign exchange effects) during 2005.

Goodwill is not amortised but is subject to annual impairment review.

For our impairment review purposes, all goodwill, including goodwill generated from the acquisition of TNT and GD Express Worldwide, is allocated to the applicable cash generating units (CGUs). Of the total goodwill balance of €1,626 million, we have allocated €1,201 million to our Express Europe CGU, €152 million to our combined CGU European Mail Networks, €140 million to our Freight Management CGU, €70 million to our other express CGUs and €62 million to our other mail CGUs. The recoverable amount of a CGU is determined based on value in use calculations by using the discounted cash flow model. These calculations use cash flow projections based on financial budgets approved by management covering a 10-year period. TNT’s management has demonstrated that its cash flow projections have been reliable in the past. The value beyond the 10-year period is determined using a sector specific multiple.

Software balance includes internally generated software with a book value of €103 million at 31 December 2005 (2004: 82). Other intangible assets mainly relate to customer lists of €75 million (2004: 92) and software under construction of €8 million (2004: 16).

The estimated amortisation expenses for software and other intangibles for the subsequent five years are 2006: €20 million, 2007: €35 million, 2008: €23 million, 2009: €16 million, 2010: €10 million and after 2011: €108 million. Of the additions in software, €37 million related to selfproduced software. Additions to other intangible assets include €7 million related to software licences.

O 2 PROPERTY, PLANT AND EQUIPMENT: 1,552 MILLION (2004: 1,924)

Property, plant and equipment as at 31 December 2005 of €345 million related to our discontinued logistics business and our other assets held for sale is included in assets held for sale. €358 million included in the table above as transferred to assets held for sale represents the balance as at 1 January 2005 and does not reflect the movements during 2005.

Historical cost refers to, amongst others, the then current value of the property, plant and equipment contributed by the former parent Royal PTT Nederland N.V. to our company upon incorporation on 1 January 1989. The calculation of the depreciation expense on these assets takes into account the useful life that had already elapsed at that date. The book value at 31 December 2005 of these assets contributed to our company on 1 January 1989 is €100 million (2004: 103), net of accumulated depreciation of €221 million (2004: 287).

Included in land and buildings under financial lease are lease hold rights and ground rent. The book value of the lease hold rights and ground rent in mail is €10 million (2004: 9), comprising a historical cost of €16 million with accumulated depreciation of €6 million. The book value of the lease hold rights and ground rent in express is €15 million (2004: 16), comprising a historical cost of €19 million with accumulated depreciation of €4 million.

There are no existing contracts for lease hold and ground rents longer than 20 years or contracts with indefinite terms. Lease hold rights and ground rent for land and buildings are mainly in Belgium for €11million and in the Netherlands for €10 million.

The property, plant and equipment of €33 million (2004: 48) which are pledged as security to third parties are in Germany.

We do not hold freehold office buildings for long term investments and for long term rental income purposes. The rental income is based upon incidental rental contracts with third parties for buildings which are temporarily not in use by TNT or based upon contracts which are supportive to the primary business activities of our company.

Financial fixed assets as at 31 December 2005 of €160 million related to our discontinued logistics business is included in assets held for sale. €201 million included in the table above as transferred to assets held for sale represents the balance as at 1 January 2005 and does not reflect the movements during 2005.

The opening balance sheet adjustment for adoption of IAS 32/39 relates to the changed accounting policy for the 5.125% Eurobond 2008 of which €3 million relates to the issuing costs still to be amortised. These capitalised costs are included in the valuation at amortised cost and stated as part of the book value of the 5.125% Eurobond 2008.

Prepayments and accrued income also includes all outstanding short term foreign exchange forward contracts at fair value for an amount of €6 million (2004: 15). The fair value has been calculated at the relevant market (forward) rates at 31 December 2005. The notional principal amount of the outstanding foreign exchange forward contracts at 31 December 2005 is €482 million (2004: 901). In addition, it also includes a net interest receivable of €4 million on the €500 million interest rate swaps.

Prepayments and accrued income also includes the fair value of put and call options. As agreed on 15 July 2004, on 14 October 2004, our subsidiary Royal TPG Post B.V. and Essent N.V. established a company named Cendris BSC Customer Contact B.V. in which the ordinary share capital, carrying equal voting rights, is split 51% and 49% respectively. Cendris BSC Customer Contact B.V. provides call centre activities to TNT, Essent N.V. and third parties. The terms and conditions of the shareholders agreement provide Royal TPG Post B.V. with the option to call, as of 14 October 2007, on the shares of Essent N.V. and for Essent N.V. to put, as of 14 October 2007, its shares to Royal TPG Post B.V. where the price is determined by the fair market value of the shares. As the call option is based on the fair market value of the shares, the fair market value of the call option is zero.

O 4 INVENTORY: 29 MILLION (2004: 46)

Total inventory of €29 million (2004: 46) is valued at historical cost for an amount of €33 million (2004: 51) and are stated net of provisions for obsolete items amounting to €4 million (2004: 5). There are no inventories carried at net realisable value (2004: 1) and no inventories are pledged as security for liabilities as at 31 December 2005.

Inventory as at 31 December 2005 of €22 million related to our discontinued logistics business is included in assets held for sale.

O 8 ASSETS HELD FOR SALE: 2,378 MILLION (2004: 0) LIABILITIES RELATED TO ASSETS CLASSIFIED AS HELD FOR SALE: 1,230 MILLION (2004: 0)

In December 2005 we announced a strategy to focus on our core competency of providing delivery services by expertly managing delivery networks. Based on the refined strategy we will now manage our business through two divisions: mail and express, with the express division including both our express and our freight management businesses.

Our assets held for sale and liabilities related to assets held for sale include our non-network related logistics business we intend to divest. The majority of our logistics business in France was sold prior to year end and the remainder of the French business has since been sold. We will retain our freight management and our innight activities and these activities have been included in the express division.

The major classes of assets and liabilities comprising the operations classified as held for sale and an analysis of the result from discontinued operations are as follows:

All inter-company balances as at 31 December 2005 between our discontinued logistics business and our continuing business have been eliminated.

Assets of €2,378 million include €12 million of assets held for sale in the mail and express segments and are not related to our discontinued logistics business. The difference between the remaining assets of €2,366 million and liabilities of €1,230 million consists of a combination of equity and financing from TNT.

Current liabilities include a €222 million Canadian dollar denominated, syndicated facility that was signed in May 2001, at a rate of interest of three month Canadian LIBOR plus a margin of 0.325%. At 31 December 2005, the average rate of interest on this facility was 3.11%.

The total amount of our results from discontinued logistics operations for 2005 includes the results of the sale of the majority of our French operations to Norbert Dentressangle and to Malherbe amounting to a loss of €102 million, pre-tax.

The cash flows relating to our discontinued operations is as follows:

Net cash from operating activities is lower by €222 million mainly due to €102 million relating to the disposal of our French logistics businesses in 2005 combined with lower operating income, resulting from contract terminations mainly in the United Kingdom, lower volumes in automotive contracts and deteriorating performance related to the disposed French logistics business. The financing relating to our discontinued logistics business of €28 million (2004: 211) as shown in our consolidated cash flow statements is included in the net cash used in financing activities.

As from 1 January 2006 new fiscal regulations apply to the Dutch pension plans. TNT agreed with the labour unions a new employee benefit package that complies with the new fiscal regulations. All early retirement benefits are cancelled for employees born after 1949. The decrease in prospective benefits is largely offset by improved regular pension benefits, the introduction of conditional pension benefits, a senior arrangement with full salary payment for part-time labour and a salary allowance for employees born between1950 and 1954. Employees born before 1950 are also affected by the overall changes. The early retirement date for these employees is postponed by 3.5 months. All other elements of their pension and early retirement benefits remain unchanged.

In the pension plan only the employer contributes to the fund. The level of contribution is based upon actuarial recommendations. In addition and subject to our funding agreement with the plan we have to pay additional contributions to the pension fund in order to satisfy the minimum funding requirements of the DNB. The total contribution to the main pension fund amounted to €145 million in 2005 (2004: 159) and is estimated to be €113 million in 2006. The benefits for early retirement are directly paid by TNT to the pensioner. These payments amounted to €98 million in 2005 (2004: 95) and are estimated at €99 million for 2006.

The pension fund runs an actively managed investment portfolio. The pension fund uses asset and liability management studies that generate future scenarios to determine its optimal asset mix. During 2005, the dynamic weight of equity investments increased to 47.5%, the dynamic weight of fixed interest investments decreased to 44.6% and the weight of real estate investments (including international) went down to 7.9%.

For 2005 no rebalancing has taken place and it is expected that in 2006 the strategic mix will move to a percentage of 49% in equity investments, 40% in fixed interest investments and real estate investments of 11%. Investments in equity consist of 50% of a European equity portfolio and 50% of a worldwide equity portfolio, all of which is hedged against US dollar exposure. The fixed income portfolios consist of 50% government bonds for the eurozone.

Provision for pension liabilities including liabilities related to other post-employment benefit plans as at 31 December 2005 of €107 million related to our discontinued logistics business is included in liabilities related to assets classified as held for sale. €83 included in the table above as transferred to liabilities related to assets classified as held for sale represents the balance as at 1 January 2005 and does not reflect the movements during 2005.

The table below shows the sensitivity of the employer pension expense to deviations in assumptions.

The table below shows the expected future benefits per year for pension funds related to TNT plans. The benefits include all expected payments by the fund to the pensioners and early retirees under the Dutch transitional plan.

Amounts expensed in the consolidated statements of income related to defined contribution plans were €26 million (2004: 21).

Provisions as at 31 December 2005 of €82 million related to our discontinued logistics business is included in assets held for sale. €52 million included in the table above as transferred to liabilities related to assets classified as held for sale represents the balance as at 1 January 2005 and does not reflect the movements during 2005.

Provisions for restructuring include provisions related to restructuring projects in the mail division for €41 million and in the express division for €2 million. Restructuring in our mail division includes projects for mail activities in the Netherlands. During the year approximately 430 (2004: 1,004) employees were made redundant through such reorganisations, as a result of a combination of efficiency improvements and the impact of restructuring of the operations of our customers. Of the employees made redundant during the year, paid via the restructuring provisions, 360 (2004: 300) related to mail, 70 (2004: 704) related to employees in express.

Long term debt as at 31 December 2005 of €61 million related to our discontinued logistics business is included in liabilities relating to assets classified as held for sale.

The fair value of long term debt, net of current portion, has been estimated by calculating the discounted value of the loan portfolio using an estimated yield curve, appropriate for the contract terms in effect at the end of the year. The carrying amounts of current portion of long term debt approximate their fair value.

On 5 December 2001, TNT N.V. issued a €1 billion Eurobond with an original maturity of seven years. The bond has a coupon of 5.125% and began paying interest annually in arrears on 5 December 2002.

In May 2005 €354 million of the €1 billion 5.125% Eurobond 2008 was exchanged for €386 million of a new 10-year 3.875% Eurobond 2015. At the time of the exchange, the 2015 bond was increased with an additional €14 million to an outstanding total amount of €400 million.

The total €1,046 million of Eurobonds will be measured at amortised cost of €1,011 million. A fair value adjustment of positive €2 million has been reflected in the amortised cost value to adjust the amortised cost value to the book value. The book value of the nominal €1,046 million of Eurobonds amounted to €1,009 million as at 31 December 2005.

TNT has a total €500 million (2004: 300) of interest rate swaps outstanding for which we receive fixed interest and pay floating interest. These interest rate swaps act as a hedge against the fair value interest rate risk of our 5.125% December 2008 Eurobond. The market value of these instruments amounted to negative €2 million as at 31 December 2005 (2004: -1).

In December 2005, we entered into €500 million of forward starting interest rate swaps whereby we will receive floating interest and pay fixed interest. These flows of interest exchanges under the forward starting interest rate swaps will start per December 2008. These interest rate swaps act as a hedge against the cash flow interest rate risk of the nonagreed upon additional funding to the 5.125% December 2008 Eurobond. Per the June 2005 exchange for the new 3.875% 2015 Eurobond we have decided to unwind €400 million of outstanding forward starting interest rate swaps whereby we paid the market value of €12 million. Because the forward starting swap has been designated as a cash flow hedge, the market value will stay in equity until December 2008 and will be straight-line amortised to income until December 2015. The market value of this long term €100 million outstanding forward starting interest rate swap amounted to €5 million as at 31 December 2005 (2004: 0). As the forward starting swap has been designated as a cash flow hedge, the market value movement has been included in equity.

As at 31 December 2004 long term debt includes a €129 million bilateral loan agreement maturing in 2020 with fixed interest rate of 5.85%. In 2005, the loan agreement was changed to a bullet loan maturing in 2006 with a fixed interest of 2.54% and is included in current portion of long term debt.

Included in the €159 million in other is €17 million related to shares purchased under the share buy back programme.

Other current liabilities also include a fair value of €31 million (2004: 8) of all outstanding short term foreign exchange forward contracts and a basis swap. A basis swap is a hedge on an inter-company loan receivable or payable. Of the €31 million an amount of €0.4 million qualifies for hedge accounting and has been included directly in shareholders’ equity. The fair value has been calculated against the relevant market (forward) rates at 31 December 2005. The notional principal amount of the outstanding foreign exchange forward contracts at 31 December 2005 is €794 million (2004: 359).

The balance of 31 December 2005 that is expected to be settled after 12 months is €70 million (2004: 58).

Other current liabilities as at 31 December 2005 of €398 million related to our discontinued logistics business is included in liabilities relating to assets classified as held for sale.

O 15 ACCRUED CURRENT LIABILITIES: 1,126 MILLION (2004: 1,308)

Amounts received in advance include €59 million (2004: 67) for stamps which were sold but not yet used. The balance of the €1,126 million that is expected to be settled after 12 months is €45 million (2004: 12).

Accrued current liabilities as at 31 December 2005 of €292 million related to our discontinued logistics business is included in liabilities relating to assets classified as held for sale.