Increased e-commerce favours logistics companies
The logistics market in the Nordic region has an annual turnover of 200 billion Swedish kronor. A positive trend is the rapidly growing e-commerce sector, which is increasing the need for fast parcel deliveries. Despite a tough market situation 2005 was PNL's best year ever, and market shares continue to grow in Sweden, Norway and Denmark. During 2006 PNL will be concentrating on Europe.

We are already the market leader in the Nordic region and will be stepping up the pace even more in 2006, which will affect both turnover and profit and send a clear signal to our competitors. In 2006 we will experience growth through European customers that wish to expand into the Nordic market, says CEO Benny Rhe Hansen.

The growth of the logistics market is estimated to around five per cent per year. Both multinational logistics groups and national companies have expanded their activities on the Nordic market. This will result in greater competition in the Nordic logistics market.

PNL's turnover increased from MSEK 1,077 to MSEK 1,151 during 2005 compared with the previous year. Operating profit for the whole of 2005 was MSEK 11.1, an increase of MSEK 10.9 compared with the previous year. The result shows that PNL has fully recovered from 2001 when Posten (the Swedish Post Office) pulled out of the company with a customer base corresponding to half the turnover.

Next stop: Europe
Last year's expansion in the Baltic States and Poland is being followed up by more activities in Europe. In 2005 PNL created a European platform through measures including the establishment of a sales office in Holland. Since 2002 PNLs turnover for imports from Europe to the Nordic market has quadrupled. Several international companies have been added to the customer list, including the Italian clothes chain Diesel, which has entrusted PNL with its entire logistics and parcel deliveries. During 2006 PNL will be expanding its activities in Europe to include more sales offices.

Trends

• The companies on the cutting edge of development are outsourcing their entire logistics operation. Efficient logistics solutions are an increasingly crucial issue for corporate management if profitability and competitive advantages are to be achieved.
• Many international players are gathering their central warehouse facilities in a small number of locations, often in Germany, Belgium and the Netherlands, which is increasing the need for logistics solutions from Europe to the Nordic market. Many of PNL's customers in this category appreciate a large Nordic distribution network and a flexible product portfolio.
• E-commerce is increasing rapidly, which is resulting in a need for flexible parcel deliveries throughout the Nordic region.

For further information, please contact:
Benny Rhe Hansen, CEO, Phone +45 70 28 60 25, Mobile +45 40 30 55 88
Jeanette Jørgensen, Vice President Information, Phone +45 70 28 60 26, Mobile +45 21 70 81 70

About Pan Nordic Logistics
Pan Nordic Logistics (PNL) is a Nordic logistics company offering unique solutions to companies that need to transport parcels and pallets to, from and within the Nordic region. Thanks to our comprehensive network and international partners, we are able to deliver to both companies and individuals in 190 countries around the world.

We know the Nordic region. As our approximately 160 employees are located in local offices throughout the region, we are always close to our customers. By always basing our products and services both physical and electronic on our customers' needs, we not only deliver consignments but also provide security and added value.

To meet the logistics needs of our customers, we offer the international product portfolio CarryOn. PNL is owned by the Danish and Norwegian postal services Post Danmark and Posten Norge and works closely with postal companies in Estonia, Finland, the Faroe Islands, Greenland, Iceland, Poland and Sweden. The company was founded in 1997 and its headquarters are in Stockholm. In 2005 turnover was just over 1.1 billion Swedish kronor. See pannordic.com for more information.