Express Delivery Services: UK

Express Delivery Services: UK Published December 2005 THE MARKET REPORT WITH THE ANSWERS YOU NEED MSI believe that the UK express delivery market increased by 5% in value terms between 2001 and 2004. Moreover, MSI project that the UK express delivery market will grow by a further 3% in 2005. See inside for a full table of contents and list of tables

THIS REPORT HAS THE ANSWERS This report provides information you will need when: planning your future sales and marketing campaigns monitoring the competition developing new products/services This report includes the following: The volume and value of the UK market for express delivery services,, with annual forecasts to 2010 The volume and value of the UK market for express delivery services, by type of service,, with annual forecasts to 2010: internal international The volume and value of the UK market for internal express delivery services, by time sensitivity,, with annual forecasts to 2010: next day other guaranteed non-guaranteed The volume of the UK market for internal express delivery services, by user type,, with annual forecasts to 2010: contract ad hoc The revenue per parcel in the UK market for internal express delivery services, by time sensitivity,, with annual forecasts to 2010: next day other guaranteed non-guaranteed The volume and value of the UK market for internal and international express delivery services, by end user, 2005: electronics & telecommunications vehicles & parts IT pharmaceuticals financial business engineering consumer government services other The volume and value of the UK market for international express delivery services, by time sensitivity,, with annual forecasts to 2010: next day other guaranteed non-guaranteed The volume of the UK market for international express delivery services, by user type,, with annual forecasts to 2010: contract ad hoc WHO IS MSI? MSI has grown rapidly in recent years. The company publishes reports on business-to-business markets in the UK, France, Germany and Spain The company is well established and widely respected in its field, with a client base that includes SME s and blue chip organisations. MSI s wide range of market research reports covers the following sectors: Construction Distribution Engineering components Electrical components Environment Security Service markets Heating Healthcare Utilities All titles are thoroughly edited to ensure that each report contains the most accurate and up-to-date information available as well as ensuring reports meet MSI s high internal quality standards. For each report MSI publishes, FREE sample pages are available prior to purchasing and without obligation. For your pre-selected sample pages from this express delivery services report please call 0800 195 6756 or e-mail info@msi-reports.com The revenue per parcel in the UK market for international express delivery services, by time sensitivity,, with annual forecasts to 2010: next day other guaranteed non-guaranteed

TABLE OF CONTENTS 1 EXECUTIVE SUMMARY 2 INTRODUCTION 2.1 Definitions 2.2 Methodology 2.3 Economic Background 2.4 Exchange Rates 2.5 Abbreviations 3 MARKET SIZE 3.1 Market Overview And Trends, 3.2 Market Segmentation, 3.2.1 Internal Deliveries 3.2.1.1 Overview 3.2.1.2 By Time Sensitivity 3.2.1.3 By User Type 3.2.1.4 Revenue Per Parcel 3.2.1.5 By End User 3.2.2 International Deliveries 3.2.2.1 Overview 3.2.2.2 By Time Sensitivity 3.2.2.3 By User Type 3.2.2.4 Revenue Per Parcel 3.2.2.5 By End User 3.3 Factors Affecting Demand 3.4 Forecast Market Overview And Trends, 2006-2010 3.5 Forecast Market Segmentation, 2006-2010 3.5.1 Internal Deliveries 3.5.1.1 Overview 3.5.1.2 By Time Sensitivity 3.5.1.3 By User Type 3.5.1.4 Revenue Per Parcel 3.5.2 International Deliveries 3.5.2.1 Overview 3.5.2.2 By Time Sensitivity 3.5.2.3 By User Type 3.5.2.4 Revenue Per Parcel 4 CRITICAL SUCCESS FACTORS 5 INDUSTRY STRUCTURE 5.1 Overview 5.2 Company Profiles 5.2.1 Amtrak Express Parcels 5.2.2 ANC 5.2.3 Business Post Group 5.2.4 DHL International (UK) 5.2.5 DX Services 5.2.6 FedEx Corporation 5.2.7 GeoPost UK 5.2.8 Initial City Link 5.2.9 Lynx Express 5.2.10 Nightfreight GB Ltd 5.2.11 Nightspeed Secure Worldwide Express 5.2.12 Parcelforce Worldwide 5.2.13 Target Express Parcels 5.2.14 TNT Express Worldwide (UK) 5.2.15 Tuffnells Parcels Express 5.2.16 United Parcel Service UK 6 MAGAZINES 7 TRADE ASSOCIATIONS 8 TRADE EXHIBITIONS In total this report contains over 91 pages with 57 tables

LIST OF TABLES 1. UK Economic Indicators, 2003-2006 2. UK Interest Rates, 2003-2006 3. The UK Market For Express Delivery Services, 4. The UK Market For Express Delivery Services, By Type Of Service, 5. The UK Market For Internal Express Delivery Services, 6. The UK Volume Market For Internal Express Delivery Services, By Time Sensitivity, 7. Proportional Importance Of The UK Volume Market For Internal Express Delivery Services, By Time Sensitivity, 8. The UK Value Market For Internal Express Delivery Services, By Time Sensitivity, 9. Proportional Importance Of The UK Value Market For Internal Express Delivery Services, By Time Sensitivity, 10. The UK Volume Market For Internal Express Delivery Services, By User Type, 11. Revenue Per Parcel In The UK Market For Internal Express Delivery Services, By Time Sensitivity, 12. The UK Volume Market For Internal Express Delivery Services, By End User, 2005 13. The UK Value Market For Internal Express Delivery Services, By End User, 2005 14. The UK Market For International Express Delivery Services, 15. The UK Volume Market For International Express Delivery Services, By Time Sensitivity, 16. Proportional Importance Of The UK Volume Market For International Express Delivery Services, By Time Sensitivity, 17. The UK Value Market For International Express Delivery Services, By Time Sensitivity, 18. Proportional Importance Of The UK Value Market For International Express Delivery Services, By Time Sensitivity, 19. The UK Volume Market For International Express Delivery Services, By User Type, 20. Revenue Per Parcel In The UK Market For International Express Delivery Services, By Time Sensitivity, 21. The UK Volume Market For International Express Delivery Services, By End User, 2005 22. The UK Value Market For International Express Delivery Services, By End User, 2005 23. Forecast UK Market For Express Delivery Services, 2006-2010 24. Forecast UK Market For Express Delivery Services, By Type Of Service, 2006-2010 25. Forecast UK Market For Internal Express Delivery Services, 2006-2010 26. Forecast UK Volume Market For Internal Express Delivery Services, By Time Sensitivity, 2006-2010 27. Forecast Proportional Importance Of The UK Volume Market For Internal Express Delivery Services, By Time Sensitivity, 2006-2010 28. Forecast UK Value Market For Internal Express Delivery Services, By Time Sensitivity, 2006-2010 29. Forecast Proportional Importance Of The UK Value Market For Internal Express Delivery Services, By Time Sensitivity, 2006-2010 30. Forecast UK Volume Market For Internal Express Delivery Services, By User Type, 2006-2010 31. Forecast Revenue Per Parcel In The UK Market For Internal Express Delivery Services, By Time Sensitivity 2006-2010 32. Forecast UK Market For International Express Delivery Services, 2006-2010 33. Forecast UK Volume Market For International Express Delivery Services, By Time Sensitivity, 2006-2010 34. Forecast Proportional Importance Of The UK Volume Market For International Express Delivery Services, By Time Sensitivity, 2006-2010 35. Forecast UK Value Market For International Express Delivery Services, By Time Sensitivity, 2006-2010 36. Forecast Proportional Importance Of The UK Value Market For International Express Delivery Services, By Time Sensitivity, 2006-2010 37. Forecast UK Volume Market For International Express Delivery Services, By User Type, 2006-2010 38. Forecast Revenue Per Parcel In The UK Market For International Express Delivery Services, By Time Sensitivity, 2006-2010 39. Industry Concentration In The UK Market For Internal Express Delivery Services, 2004 40. Financial Summary Of Amtrak Express Parcels, 2000-2004 41. Financial Summary Of ANC, 2001-2004 42. Financial Summary Of Business Post Group, 43. Turnover Of Business Post Group, By Business Unit, 2005 44. Financial Summary Of DHL International (UK), 1999-2003 45. Financial Summary Of DX Services, 2004-2005 46. Financial Summary Of FedEx Corporation, 2001-2004 47. Financial Summary Of GeoPost UK, 1999-2005 48. Financial Summary Of GeoPost UK, (Including Internlink Express And Interlink Ireland), 2002-2004 49. Financial Summary Of Initial City Link, 1999-2003 50. Financial Summary Of Lynx Express, 2000-2004 51. Financial Summary Of Nightfreight GB Ltd, 1999-2003 52. Financial Summary Of Nightspeed Secure Worldwide Express, 2000-2003 53. Financial Summary Of Parcelforce Worldwide, 2003-2005 54. Financial Summary Of Target Express Parcels, 1999-2004 55. Financial Summary Of TNT Express Worldwide (UK), 1999-2003 56. Financial Summary Of Tuffnells Parcels Express, 2000-2004 57. Financial Summary Of United Parcel Service Corporation, 2000-2004

Order Details Order Form: Express Delivery Services: UK Published in December 2005 I would like to purchase the MSI: Express Delivery Services: UK report in the following format: In hard copy for 595/ 655 (0% VAT rated) By e-mail for 699.13 incl. VAT (credit cards only) document in Adobe Acrobat (PDF) In Adobe Acrobat (PDF) On CD-Rom or On Disk for 699.13 incl. VAT By e-mail & in hard copy for 828.04 incl. VAT (credit card orders only) FAX ORDERS TO: 0800 195 6757 (+44 12 44 68 14 57) TELEPHONE FOR FURTHER INFORMATION: 0800 195 6756 (+44 12 44 68 11 86) E-MAIL: enquiries@msi-marketingresearch.co.uk Website: www.msi-marketingresearch.co.uk Alternatively Send Your Order To: MSI, Viscount House, River Lane, Saltney, Chester, CH4 8RH, UK I enclose a cheque made payable to MSI for (a receipt will be sent with your order) Payment upon receipt of invoice ( 5 deferred payment charge) (Terms: payment by return) Please charge my credit card Mastercard AMEX Visa Card N o : Expiry Date: Security Code (normally found on reverse of card): Card Holder's Address or Invoice Address: Your Details Name: Position: Organisation: Delivery Address: Postcode: Telephone No: Fax No: E-mail : Signature: Date: INT

MARKET SIZE Customers of express delivery services require in most instances time-defined delivery solutions, and this is principally responsible for the decline in the market for non-guaranteed express delivery services in the UK during the review period. Additionally, the declining prices for all three forms of delivery have led some customers to choose one of the more expensive time-defined forms of express delivery as the price differential between guaranteed and non-guaranteed services has narrowed. MSI project that the share of the market held by next day delivery services will rise to represent 58% of the internal express delivery services in volume terms in 2005. The share of other guaranteed internal express delivery services will decline to account for 35% of the total market during the same year. The remaining 7% of the internal express delivery services market volume will be accounted for by non-guaranteed delivery services in 2005, as illustrated in the following table. TABLE 1: PROPORTIONAL IMPORTANCE OF THE UK VOLUME MARKET FOR INTERNAL EXPRESS DELIVERY SERVICES, BY TIME SENSITIVITY, Time Sensitivity 2001 2002 2003 2004 2005* Next Day 55% 56% 57% 58% 58% Other Guaranteed 36% 35% 35% 35% 35% Non-Guaranteed 9% 9% 8% 7% 7% Total 100% 100% 100% 100% 100% Unit: Note: Source: % of total volume * = projections Trade and MSI estimates and projections The proportional importance of next day delivery services increased during the review period to account for 58% of the UK market for internal express delivery services in volume terms in 2005. This reflects the changing needs of both private consumers and corporate clients, where shorter delivery times are expected as a vital element in the shortening of the supply chain or a reflection of consumer expectations within the modern age of internet shopping. As a consequence speedy time definite deliveries are often required, which results in the increasing importance of next day express delivery services within the UK. In contrast to the strong volume growth in the market, the next day internal express delivery services market rose by just 5% in value terms between 2001 and 2004. This market is projected to rise by a further 3% in 2005 to reach 1 098 million ( 1 625 million). As a further contrast, the market for other guaranteed express delivery services declined by 4% between 2001 and 2004 and MSI project a further

MARKET SIZE TABLE 2: THE UK MARKET FOR INTERNATIONAL EXPRESS DELIVERY SERVICES, Year Volume % Change % Change 2001 2002 2003 2004 2005* Units: Note: Source: million packages, million and million * = projections Trade and MSI estimates and projections The UK market for international express delivery services was negatively affected in 2002 by the events of September 11, 2001. These events had an immediate impact on international travel and on international trade, making a significant impact on the international express delivery services market in the final quarter of 2001 and in the early parts of 2002. This resulted in a low growth rate in the market for international express delivery services in 2002. However, the market recovered in 2003 from the downturn in 2002 and achieved a growth rate of 6% in volume terms. The UK market for international express delivery services increased by 5% in volume terms in 2004 and MSI project a further increase of 6% in 2005. Trade sources report that the positive economic developments in the UK and the ongoing trend of globalisation stimulated the UK market for international express delivery services. 1.1.1.1 By Time Sensitivity The UK market for international guaranteed next day delivery increased by 32% in volume terms between 2001 and 2004. The market for express delivery services with other guaranteed delivery times increased by 13% during the same period. In contrast, the market for non-guaranteed express delivery services declined by 25% between 2001 and 2004. According to trade sources, this development is a direct result of the increasing demand for fast time definite express deliveries throughout the review period. As consequence, the market for international next day express deliveries had the strongest growth rates during the review period, resulting in an increasing market share for this segment. This is also a reflection of increasingly close commercial links between the UK and other EU countries, the principal destination for guaranteed next day delivery services.

>>>MEDIA INFORMATION<<< URGENT! ***PRESS RELEASE*** URGENT! Market Research Report: Express Delivery Services: UK 2005 Published - December 2005 Unsure of the state of the Express Delivery Services market in the UK? Need the latest information to assist you with your planning? If so, read on and uncover the future of the market with this latest report from MSI. In this their latest Express Delivery Services: UK report, MSI believes that the UK market for express delivery services increased by 8% in volume between 2001 and 2004. The market is projected to grow by a further 4% in volume terms in 2005. The UK market for express delivery service grew by 5% in value terms between 2001 and 2004. MSI project that the UK market for express delivery services will reach a value of 2.82 billion ( 4.17 billion) in 2005.The following table illustrates the developments in the UK market for express delivery services, in terms of volume and value, between 2001 and 2005. TABLE 1: THE UK MARKET FOR EXPRESS DELIVERY SERVICES, Year Volume % Change % Change 2001 788 +4% 2 611 +3% 4 204 2002 804 +2% 2 625 +1% 4 174 2003 827 +3% 2 690 +2% 4 008 2004 854 +3% 2 747 +2% 4 066 2005* 886 +4% 2 817 +3% 4 169 Units: Note: Source: million packages, million and million * = projections Trade and MSI estimates and projections The UK market for express delivery services has increased during the review period due to the following factors: economic conditions ongoing trend to outsourcing increasing globalisation of the marketplace increasing use of e-commerce Demand for express delivery services has been stimulated during the review period by the state of the economy both within the UK and on a global scale. Indeed, the economic conditions of the main trade partners have also had an impact on the market for international express delivery services between 2001 and 2005. MSI believe that internal express delivery services represented the largest proportion of the overall UK market for express delivery services in terms of both volume and value during the review period, representing 92% in volume and 58% of the total market in value terms in 2005. The internal express delivery services market increased by 8% in volume terms between 2001 and 2004, with a further rise of 4% projected for 2005. However, in value terms, the internal market rose by less than 2% during the period 2001 to 2004, with a further 2% rise projected for 2005.

For the purposes of this report, MSI have segmented the market for express delivery services by internal deliveries and by international deliveries for a five year review period and a five year forecast period up until 2009. These have then been further segmented by time sensitivity, by user type, by revenue per parcel and by end user. The UK market for international guaranteed next day delivery increased by 32% in volume terms between 2001 and 2004. The market for express delivery services with other guaranteed delivery times increased by 13% during the same period. In contrast, the market for non-guaranteed express delivery services declined by 25% between 2001 and 2004. According to trade sources, this development is a direct result of the increasing demand for fast time definite express deliveries throughout the review period. As consequence, the market for international next day express deliveries had the strongest growth rates during the review period, resulting in an increasing market share for this segment. This is also a reflection of increasingly close commercial links between the UK and other EU countries, the principal destination for guaranteed next day delivery services. For the purpose of this report, MSI have identified a number of factors that affect demand for express delivery services. These include: economic conditions liberalisation of the postal service growing popularity of e-commerce and home shopping production and distribution techniques outsourcing legislative restrictions The growing popularity of home shopping has had a significant impact on the express delivery companies. Using the Internet, catalogues or television shopping channels consumers can order products from their home. According to trade sources, in a lot of cases express delivery services are used to deliver physical goods. It is estimated that consumers spent 17 billion ( 25 billion) on physical products bought via the home shopping channels. It is further estimated that this market will grow by 50% in the next five years. This significant increase in home shopping purchases will therefore stimulate the UK market for express delivery services. ************************************************************************************* In summary, this latest version of Express Delivery Services UK, analyses the UK market for a 5 year review period and a five year forecast period up until 2010. For the purposes of this report, MSI have segmented the market by type of service which includes internal deliveries and international deliveries. Both sectors have been further segmented by time sensitivity, by user type, by revenue per parcel and by end user. Also included in this report are factors affecting demand, critical success factors and a chapter analysing the industry structure which includes 16 company profiles. This report contains 91 pages with 57 tables and 1 diagram. Express Delivery Services: UK is available for 595 from: MSI Reports Viscount House River Lane Saltney Chester CH4 8RH Tel: 0800 195 6756 Fax: 0800 195 6757 E-mail: info@msi-reports.com