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Cautionary note with regard to “forward-looking statements” Some statements in this annual report are “forward-looking statements”. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are beyond PostNL’s control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industries in which PostNL operates and PostNL management’s beliefs and assumptions about future events. You are cautioned not to put undue reliance on these forward-looking statements, which only speak as of the date of this annual report and are neither predictions nor guarantees of future events or circumstances. PostNL does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this annual report or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. This annual report can also be viewed on PostNL’s corporate website: postnl.nl/annualreport2015. Any information on the website other than the contents of this annual report does not form part of PostNL’s annual report. Table of Content 1 We are PostNL 2 2 Message from the CEO 7 Case studies Throughout this report you will find various testimonials and background stories illustrating how we implement our strategy Business Report and how this affects our employees and other stakeholders. The 3 Our value creation process 10 full versions of these stories can be read on our corporate website. 4 Developing our strategy 12 5 Our strategy 18 6 Implementing our strategy in 2015 24 7 Performance 2015 and outlook 2016 34 Governance Innovations that set us apart 8 Statement of the Board of Management 50 Food delivery: a service that gives 9 Report of the Supervisory Board 51 us energy 10 Corporate governance 55 11 Risk management 65 12 Remuneration report 70 13 Our tax strategy and policies 75 14 PostNL on the capital markets 76 Managing our network as one The wealth of opportunities of IT Performance Statements 15 Financial Statements 82 16 CR Performance Statements 158 Appendices 17 Appendix 1: Regulatory environment 180 18 Appendix 2: Other CR Performance Statements 183 Case study 19 Appendix 3: Global Compact and GRI G4 index 183 The Women Inclusion Network 20 Appendix 4: Data clarification table 191 21 Appendix 5: Glossary and definitions 192 22 Appendix 6: Summary of key figures 196 How to read this report Business Report Governance Performance Statements This section provides an overview of the inter- This section provides an overview of the This section includes the Financial Statements nal and external factors that are shaping our governance framework we had in place in and CR Performance Statements. business, the actions we implemented in 2015, an outline of the key topics the 2015, and how we plan to continue realising supervisory board dealt with during the value for our stakeholders and the business year, and related information. going forward. 1 We are PostNL The essential link for our customers We are PostNL. The essential link between senders and receivers of mail and parcels. Whether it is online or through our physical networks, we aim to facilitate a seamless connection. We provide our customers with a reliable, trustworthy service, and control over their deliveries, whether they are major e-tailers or consumers. And we are always close by: our deliverers reach every address, through rain, hail, sleet and snow. Mail in the Netherlands Parcels International We are a company of three business segments, over 49,000 employees, and more than ten networks across thirteen countries, connecting three continents. With our loyal workforce, extensive networks and innovative drive, our ambition is to be the leading postal and logistics solutions provider in our chosen markets. PostNL is the leading mail and parcels Holds number two position Holds number two position solution provider in the Benelux in Germany in Italy Network of Global Delivery Solutions A broad array of services Our extensive portfolio contains a wide range of services and products, for example: direct marketing, medication delivery, e-commerce, print services, door-to-door delivery, warehousing, cargo and same-day delivery. PostNL Realising our potential | We are PostNL 2 We care about our employees If it were not for our people, there would be no PostNL. Our people keep the company running, from the truck drivers in the early morning to the mail sorters late at night; from the call-center employees to our web designers; and of course our mail and parcel deliverers. Employees Employee engagement score 49,174 64% 2015 49,174 2015 64% 2014 52,364 2014 59% We have created a work environment in which our employees feel at home, and are given the opportunity to grow and develop. We provide employees with training and new career opportunities. We invest in a sustainable future, both for our company, for society, and for the people who work for and with us. In 2015 over 200 people found a job outside of Since the start in 2006, Mobility has helped over PostNL using our internal job program Mobility 8,000 people ﬁnd a job outside of PostNL >200 >8,000 Inclusive employer award In 2015 we have been awarded the AWVN-trophy Inclusive Employer. We got the award because we offer jobs to people with a distance to the labour Case study market. In fifteen of our Parcels’ The Women Inclusion Network sorting and delivery centres the “I do think most men are naturally better at making themselves morning process is handled seen, and women could use a little bit of help” completely by these employees. More on postnl.nl/win PostNL Realising our potential | We are PostNL 3 The number-one network Mail in the Netherlands Parcels We have operated at the heart of the Dutch community for (in million items) (in million items) more than 200 years. Our networks have kept pace with the 2015 2,401 2015 156 changing needs of society. Today, we are able to manage our 2014 2,705 2014 142 networks as one using our robust IT resources. This enables us finding the most efficient route for every mail item or Addressed mail volume Volume parcel, and that we can deliver wherever, whenever and -11.2% +9.6% however the customer wants. Mail in the Netherlands Parcels (in million items) (in million items) Our network in the Netherlands 2015 2,401 2015 156 18 Parcel sorting and2014 delivery centres 2,705 2014 142 6 Mail sorting locations Addressed mail volume Volume -11.2% +9.6% We continue to invest in our networks, for both mail and parcels, nationally and internationally. We are rolling out our next-generation sorting machine extra (SMX), which makes our mail network more flexible and efficient, and improves the quality of our service. For Parcels, we opened our eighteenth sorting and delivery centre in 2015, providing us with a scala- bility that enables us to satisfy growing demand in the future, and introduce innovative, value-added parcel services. We also initiated the roll-out of a 2C parcel network in Italy. Related story Why we rely on state-of-the-art IT Nexive mail network covering ~80% of all Italian households Managing our networks as one ~80% The wealth of opportunities of IT More on postnl.nl/it PostNL Realising our potential | We are PostNL 4 Focus on our customers Our customers are an important driver in everything we do: from introducing innovative services, building a new digital platform, or creating one customer experience throughout the company. We embrace the opportunities provided by market trends, such as accelerating e-commerce and technological developments. And we use them to support business customers in their development and growth, and make consumers’ lives as easy as possible. Customer satisfaction Reputation 86% 67.7% 2015 86 2015 67.7 2014 85 2014 64.5 For example, we offer flexible return solutions for international Related story e-tailers, and direct marketing solutions for small and Why investing in food is a really good idea medium enterprises. And this customer focus pays off. In 2015, customer satisfaction increased, and PostNL became an even stronger brand, which is also reflected in our reputation scores. 1 PostNL app over 3.5 million Innovations that set us apart downloads Food delivery: a service that gives us energy For our customers PostNL is one company. To offer them a true OnePostNL experience More on postnl.nl/food-delivery we continuously develop our PostNL app. This has been growing in popularity and acts as one of the carriers for all our services. We are also setting up one customer base, which will provide us with a 360-degree customer view. And we are implementing a business portal for our customers, providing them with an overview of all the postal, parcel and logistic services they have running with PostNL. PostNL Realising our potential | We are PostNL 5 A sustainable company We have delivered on our promises, transforming PostNL into an efficient, flexible, customer oriented and financially healthy company over the past few years. To remain a strong and healthy company, we are continuously adapting our organisation to the expected volume decline in mail, and volume growth in the domestic and international parcels market. Revenue Underlying cash operating income Net cash from operating & (in € millions) (in € millions) investing activities (in € millions) 3,461 303 135 (margin: 8.8%) 2015 3,461 2015 303 2015 135 2014 3,465 2014 287 2014 141 Additionally, we have identified three substantial growth domains that are close to our competences, with the potential to further strengthen our results up to and beyond 2020.

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