Slide 1 Cover

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Slide 1 - Cover
Annual Results - 31 March 2000
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Slide 2 - Annual Results - March 2000

• Peter Kane Chief executive
• Peter Fitzwilliam Finance director
• Guy Buswell Sales marketing director

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Slide 3 - Results

• Turnover up 6.5 to 114.3 million
• Profit before tax down 5.5 to 16.5 million
• Year end cash of 5.5 million
• Dividend maintained at 15.1p

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Slide 4 - Turnover growth

• Q1 7.8
• Q2 7.8
• Q3 5.0
• Q4 5.6

H1 7.8 H2 5.3
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Slide 5 - Turnover

• Change in product mix
• International
• Priority services
• Customer churn up due to systems changes

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Slide 6 - Parcel Revenue per working day
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Slide 7 - Profits

• Franchisees
• Changes in product mix
• International
• Priority services
• Cost pressures vs economies of scale
• Information technology

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Slide 8 - Gross Profit margins

• International (0.7)
• Priority services (0.6)
• Franchise investment (0.8)
• Franchise conversions (0.5)
• Fuel (0.4)
• Economies of scale/other 0.6
• (2.4)

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Slide 9 - Overheads
1999 2000 m m

• Non-IT overheads 10.3 10.3 0
• IT-related cost 2.2 3.0 35
• 12.5 13.3 6
• Pre-exceptional costs

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(No Transcript)
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Slide 11 - Balance sheet
1999 2000 m m

• Net assets 36.5 40.3
• Net cash balances 7.4 5.5
• After tax ROCE 35.6 30.1

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Slide 12 - Cash flow
1999 2000 m m
Profit before tax 17.5 16.5 Depreciation 2.7 2.9
Working capital (0.9) (3.4) Capex (7.0) (4.5)
Tax and dividends (13.1) (13.5) (0.8) (2.0)
Share capital and other 1.8 0.1 1.0 (1.9)
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Slide 13 - Capital expenditure
Property Information Technology Vehicles Other
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Slide 14 - Operational developments

• Fundamental change in systems
• Significant increase in volumes
• Record levels of new business
• Network absorbed growth
• Expansion continues

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Slide 15 - IT changes (1)

• OPSYS
• the core of all collection and delivery activity
• also central to web-site
• post implementation hiccups
• In-cab scanning
• quicker delivery information

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Slide 16 - IT changes (2)

• Web-site
• Improved delivery information
• hard copy proof of delivery (DIP)
• greater tracking detail (OPSYS)
• Operational improvements

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Slide 17 - Hard copy proof of delivery
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Slide 18 - Next stages of development

• On-line ordering via Web-despatch
• Further scanning in the network
• Further web development

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Slide 19 - Network changes
Huddersfield Ipswich Kirkcaldy Leeds
Leicester London Croydon Dartford Docklands H
arrow Ilford Kingston Park Royal Manchester Med
way Milton Keynes Newcastle Newport Northampton No
rwich Nottingham

• Depots
• Aberdeen
• Bath
• Belfast
• Birmingham
• Bournemouth
• Bristol
• Burgess Hill
• Cambridge
• Cardiff
• Carlisle
• Chelmsford
• Coatbridge
• Coventry
• Derby
• Dublin
• Edinburgh
• Exeter
• Glasgow

Oxford Peterborough Plymouth Portsmouth Preston R
uncorn Sheffield Slough Southampton Stevenage Stoc
kport Stoke Swansea Swindon Telford Thames
Valley Tunbridge Wells Wigan Worcester York
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Slide 20 - International

• Eurodis network
• Airborne Express
• David Wilcock reviewing options

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Slide 21 - Sales

• New business at record levels
• Customer churn
• Market share increased further

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Slide 22 - UK Parcel Market

• by value
• 
  1998 1999
• Parcelforce 22 21
• Securicor Omega Express 17 16
• TNT Express (UK) 10 13
• Parceline 6 6
• Lynx Express 6 6
• Business Post 4 5
• ANC 5 5
• United Carriers 5 5
• Amtrak Express Parcels 4 4
• Interlink Express Parcels 3 3
• Nightfreight 3 3
• UPS 3 3
• White Arrow 3 3
• Target Express Worldwide 3 2
• Tufnells Parcels Express 2 2
• Others 4 3

Based on MSI surveys
Total value of market 1.6 billion
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Slide 23 - HomeServe.net

• AM, PM, evening time slot delivery
• Tiny Computers win
• Further development

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Slide 24 - IT winning new business

• IT investment starting to win new business
• Web-despatch/virtual retailers
• Returning customers

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Slide 25 - Current Trading

• Recent levels of new business encouraging
• April revenues per day up 9 on prior year
• May volumes holding up well

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Slide 26 - The future

• Business Post straddles the old and new economies
• B2C set to grow
• Technology is the key to the new economy
• 2000 has been a year of transition
• Business Post is well set to benefit