GLS: positive full-year results and new strategy for the next five years!

Amsterdam, 19 May 2005. General Logistics Systems B.V., Amsterdam (GLS) has started the financial year 2005/6 with positive results and a development strategy for the next five years.

"By 2010, GLS' revenues will rise by over 30 percent to 1.7 billion euros," announced Rico Back, Chief Executive Officer of General Logistics Systems B.V. Amsterdam. "We will use this cash to achieve our strategic goals and free the entire group from debt." GLS' planned investments sum up to around 300 million euros during the next five years.
On March 31st 2005, GLS' financial year 2004/5 came to a close. Up until this date, the GLS Group had increased revenues to around 1.3 billion euros. This equates to 100 million euros which are 8.3 percent more than the previous year 2003/4. The group achieved EBIT (earnings before interest and taxes) of 6.9 percent or 89.7 million euros. "The success achieved last year must be viewed in a particularly positive light given the difficult economic environment," said Back.

The new five-year plan
This year, GLS is startig with a new plan for financial and strategic development. Between now and 2010/11, the Group will focus on the following:

• completing its European network and increasing absolute size;
• further standardising operating procedures within the GLS Group;
• advancing three strategic business fields: the establishment of an express network, the optimisation of deliveries to private households, and the handling of letters by feeding them into the letter networks operated by postal companies (downstream access).

"During the next five years, around 300 million euros will flow into infrastructure, developing our three strategic business fields and freeing the Group from dedt completely," continued Back. "With this five-year plan, the value of the company will increase significantly. In addition to a strong European quality network in the parcel an express segment, we will also offer our customers a solid platform for the handling of letters."

Financial year 2005/6
2005/6 marks the first year of GLS' new five-year p lan. The investments made in this financial year will total to around 65 million euros. 55 million of this will be used for new locations as well as technical and IT equipment - mainly in Germany, but also in Denmark, Hungary, Poland, France, Austria and Holland.

"We expect revenues generated by the entire GLS Group in financial 2005/6 to rise to 1.45 billion euros and we also aim to complete all the preparatory activities required to set up the business fields express, letter and private delivery," explained Back. "During this process we will focus on those success factors that have moved the company forward in the past: firstly, total commitment to quality, which also covers reliability and the adherence to agreements, as well as the focus on security systems and damage prevention. Secondly, the strict focus on Europe and not beyond. Thirdly, the further training of our employees in order to facilitate growth from within our own ranks and to establish the GLS philosophy throughoutu Europe."