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The letter: prepared for the future<br />
Solid growth<br />
Our MAIL corporate division is roughly comprised of<br />
the Mail Communication and Direct Marketing business<br />
segments. The improved economy was one of<br />
several factors generating an increase in the traditional<br />
mail business in 1999. Communication in a number of<br />
liberalized areas such as the telecommunications,<br />
energy and financial services industries increased in<br />
frequency and scale, a development that also helped<br />
boost volumes for the year. Our Direct Marketing<br />
business segment is seeing strong growth as a result of<br />
the trend toward directly approaching sub-groups on<br />
an individualized basis. Compared to traditional advertising<br />
media, the direct approach offers greater efficiency.<br />
Defending our market leadership<br />
Building on its market leadership in the transport and<br />
distribution of paper-bound communication, the MAIL<br />
corporate division is redefining itself as a provider of<br />
integrated solutions, offering customers a comprehensive<br />
range of products and services. Special attention is<br />
paid to tapping additional potential by growing our<br />
systems and solutions businesses among existing customers<br />
and new target groups, particularly in the smallbusiness<br />
customer segment. In terms of its strategic<br />
orientation, the MAIL corporate division regards itself<br />
as a mediator, manager and fiduciary of the content and<br />
media-related communications needs of senders and<br />
recipients.<br />
Corporate Division<br />
“<strong>Deutsche</strong> <strong>Post</strong> is the only provider in Germany offering a product portfolio that covers all physical and<br />
hybrid forms of mail that also couples trust, reliability and nationwide service with innovation and<br />
operational efficiency at the top of the international quality scale.”<br />
Mail<br />
Business development – Revenue growth on all<br />
fronts<br />
Our mail business was able to hold its own once again in<br />
1999 as a robust growth market competing with primarily<br />
electronic media in the marketplace. Backed by<br />
innovative products and solutions, <strong>Deutsche</strong> <strong>Post</strong> successfully<br />
dealt with a difficult environment that has<br />
been further aggravated by the licensing of more than<br />
500 rival postal services in Germany.<br />
We increased our operating profit before amortization<br />
of goodwill by 6.9 percent to EUR 1,008.7 million last<br />
year. This positive performance was driven on the one<br />
hand by the introduction of cost-reduction measures.<br />
On the other hand, we were able to increase external<br />
revenue by 2.9 percent to EUR 10.2 billion and volume<br />
by approximately five percent to some 21 billion items<br />
as a result of an increase in marketing and sales<br />
activities. Income generated by ancillary activities such<br />
as collection from the customers’ premises, post office<br />
box and forwarding address notification services developed<br />
extremely well, posting 93-percent growth.<br />
External Revenue Group<br />
MAIL corporate division<br />
in EUR bn, 1999<br />
Group revenue<br />
22.4<br />
Revenue<br />
generated by the<br />
MAIL corporate<br />
division 10.2<br />
47