Deutsche Post DHL · PDF fileDEUTSCHE POST DHL GROUP IS THE GLOBAL LEADER OF THE ... blinking lights via special App ... check-out process of web shops, e.g., time

Deutsche Post DHL GroupDelivering eCommerce Investor Relations RBC 2015 Consumer & Retail Conference, London 21.5.15

#1 Global air freight volumes1

DEUTSCHE POST DHL GROUP IS THE GLOBAL LEADER OF THE LOGISTICS INDUSTRY

PAGE 2

Leader with a market share of 8% well ahead of next biggest competitors: 13.7mn m2 of warehouse space#1 Global leader in contract logistics1

64mn letters and more than 4 mn parcels each workday in GER, and selected international markets

#1 Europe´s largest postal and parcel provider

1

~4mn tons of Air freight volume

2.9mn TEUs of Ocean freight volume#2 Global ocean freight volumes

2

Leader with 34% market share, serving >2.5mn customers in 220 countries and territories#1 International express delivery1

Revenue of €4.2 bn and presence in more than 50 countries and territories#2 European road freight volumes2

INVESTOR RELATIONS ECOMMERCE PRESENTATION | MAY 2015

OUR UNIQUE NETWORK CONFIGURATION IS A STRONG FOUNDATION FOR FUTURE GROWTH

PAGE 3

Europe International

Europe‘s No.1 parcelcompany with growing

coverage of own end-to-end network operations

Leading parcel provider in growthmarkets like India – incomparable global

network flexibility due to own parceloperations and interlinkage with DHL Express and local postal operators


WE TURNED INTO A TECHNOLOGY COMPANY TO REDEFINE PARCEL DELIVERY

PAGE 4

SORTING DELIVERY LOCKERS

Building Europe‘s largestparcel HUB

Having developed our owne-delivery van

Having constructed theleading parcel locker

solution


Private Parcel boxes

Click-to-car

Parcel copterCourier and same day delivery

Parcel shops

Parcel lockers

INDIVIDUALIZING PARCEL DELIVERY ON THE LAST MILE IS THE ULTIMATE DIFFERENTIATOR

PAGE 5INVESTOR RELATIONS ECOMMERCE PRESENTATION | MAY 2015

PAGE 6

Back-up


WE HAVE A KEEN INTEREST IN SUPPORTING THE GROWTH OF ECOMMERCE BY ADDRESSING VARIOUS PARTS OF THE SUPPLY CHAIN

PAGE 7

• International B2X shipping– Express– Deferred

commercial– Postal

• International eFulfillment solutions

Cross-border eCommerce Delivery eFulfillment

• Marketplaces

• Marketing services

• Payment solutions

eFacilitation

Primarily through partners

• Domestic eFulfillmentincl. value added services

• Multichannel domestic delivery and return incl. intra-EU

• Innovative services like Packstation, Private parcel box etc.

50 10203040

00


IN 2010, DHL PARCEL LAUNCHED THE ONLINE MARKET PLACE ALLYOUNEED.COM FOR THE GERMAN MARKET

PAGE 8

• Online marketplace with integrated checkout

• Additional sales channel for online shops - full range offer for online shoppers

• Launch Germany in 2010, first international branch in Poland since 2014

• Further European expansion with cross border leverage planned

At a glance

RegisteredCustomers

ActiveMerchants

AvailableProducts

3 mn 3,50013 mn

Allyouneed – MARKETPLACE


SINCE MAY 2012, ALLYOUNEED IS ACTIVE AS A FULL-RANGE ONLINE SUPERMARKET IN GERMANY

PAGE 9

• Online supermarket with focus on food and FMCG

• More than 20,000 products available (thereof 3,000 fresh chilled products)

• Dedicated delivery options for grocery (time-window, evening delivery) with “DHL Kurier”

• Allyouneedfresh.cn for Chinese customers with focus on health care/ baby & kids products

At a glance

RegisteredCustomers

Availableproducts

Avg itemsper order150k +20,00029

Allyouneed Fresh – SUPERMARKET


DHL HAS LONG EXPERIENCE IN DEVELOPING AND RUNNING UNATTENDED DELIVERY SOLUTION

PAGE 10

DHL PACKSTATION – PARCEL LOCKER

• 24/7 parcel drop-off and pick-up• Delivery notification and mobile TAN transmission via

SMS• 14 years of experience in Hardware, Software and

network development• DHL owned hardware and software solution

More than 7 million frequent users in Germany

Our Network

• ~2800 machines with 270.000 compartments available each day

• Currently situated in more than 1600 cities nationwide. 90% of the German population are within 10 minutes of a PACKSTATION

• First machines placed outside Germany in the Netherlands, Italy and Switzerland


Usage of DHL Parcel Box

*As of June 2015

Opening technologies via / : NFC-Chip Smartphone* Courier handheld

Offline access control with patented lock solution

Power supply by 4xAAA batteries (last 24 months)

Key features DHL Parcel Box

Online Purchase Delivery Reception First MileAddress the shipment to your home address

DHL courier opens box with handheld and inserts shipment

Customer opens box with NFC-Tag or smartphone

Place e.g. parcels return into parcel box; DHL courier picks up parcel

Product specifications: Two product lines

(classic/modern)

Two different sizes; e.g., XL with 166 liter

Upgrade options letter box and free standing

37 colors to choose from

THE DHL PARCEL BOXFOR SINGLE-FAMILY HOUSES MEETS THE REQUIREMENTS FOR PERSONALIZED DOOR STEP E-COMMERCE

INVESTOR RELATIONS ECOMMERCE PRESENTATION | MAY 2015 PAGE 11

Usage of modular DHL Parcel Box

*As of June 2015Opening technologies via / : NFC-Chip Smartphone* Courier handheldOffline access control with

patented lock solution

Dynamic compartment allocation opens door for customer only if a parcel is deposited for him

Key features DHL Parcel Box

Product specifications: Modular construction

4 compartment sizes

Flexible configurable

Upgrade option letter compartment

• Similar process and opening solution as for single-user parcel box

• Receiving as well as sending option (e.g. for returns) for registered users

• Correct allocation of respective receiver to right compartment done system-wise, thus high security level ensured

EXPANDING THE PARCEL BOX SOLUTION TO APARTMENT HOUSES ENABLES DOOR STEP CONVENIENCE FOR A BROADER POPULATION


„Click-to-car“ Project description

• Joint project development of Amazon & DHL

• In-car delivery piloted for May 2015

• Piloting partners:

Audi/VW

Perspectives and outlook

• Alternative to workplace delivery

• New, innovative delivery formats possible, e.g.

– Time window delivery to parking lots

– Night delivery at home addresses

– Unmanned car-to-car delivery

CLICK-TO-CAR IS A JOINT INNOVATION PROJECT OF AMAZON & DHL


PROCESS DESCRIPTION OF „CLICK-TO-CAR“ DELIVERY

„Click-to-car“ workflow

Example

Source: DHL, Audi/Volkswagen

Retailer sends license plate number and assumed car position (± 250 m) to DHL

DHL locates car through a) GPS function and b) blinking lights via special App

DHL opens trunk through special delivery App and delivers parcel

As soon as trunk is closed, customer receives message through consumer App Customer picks up parcel in trunk


THE PARCEL COPTER PROJECT PILOTSUNMANNED DELIVERY UNDER REAL LIFE CONDITIONS

Delivery service to the North Sea island of Juistsurpassing a distance of 12 km

Supply of urgent goods such as emergency medications or electronic goods

Flight by unmanned parcel copter outside visual range from the mainland to the coast of Juist

Second project phase 2014: Medical transport to German island

Unique research project with huge press echo worldwide Proof is shown: Technology works and can provide additional value DHL Parcel as important opinion leader


++

+

Germany-wide Next-day

Regional Same-dayTarget Areas Customer References

30 m. potential consignees!

Multi-Way Concept

Service

• Same-day delivery• Either in the evening time

slot (18-20 or 20-22) or by day within 90 minutes

• Additional services feasible (e.g. Multi-Way)

• >90% next day delivery• Evening time slot (18-20

or 20-22) selectable • Delivery pre-advice for a

30-minute time window

Services

• Convenient Multi-Way process, to avoid packaging waste

• Age verification e.g.,concerning delivery of liquors

Grocery

Pharmacy

Fashion & Others

DHL KURIER SETS NEW STANDARDS IN FAST AND CONVENIENT PARCEL DELIVERY


WE OFFER UNIQUE DELIVERY CHOICES TO OUR PRIVATE CUSTOMERS AND CONSIGNEES

* Scheduled for 2nd half of 2015

Unique delivery options at point-of-order

Full transparency on parcel delivery

Flexibility with individualdelivery options

Exclusive reward systemfor DHL customers

Online shopping process Beyond parcel deliveryParcel delivery process

• Direct delivery to+11,000 DHL Parcel-shops (pick-up-stations)

• Direct delivery to +2,800 DHL Packstations(country-wide locker system)

• Additional delivery features selectable in check-out process of web shops, e.g., time-window definition(DHL Courier)

• Full transparency on delivery process with- estimated delivery day- time window pre-

diction

• Various formats of information:- E-Mail notification- DHL Parcel App- Push notification- T&T/DHL Website/

private customer portal

• Ad-hoc rerouting options for parcels under-way, e.g., change- delivery day- delivery time*- delivery address*- to a safe-place at

home*

• Definition of delivery preferences at private customer portal (valid for all parcels received at home)

• DHL Parcel loyalty program (~ 40% of registered private DHL customers participating)

• Get rewards, e.g., for using direct delivery options to Packstation

• Access to unique pre-mium service options, e.g., quicker access to customer service


AS A RESULT, GERMANY IS TRAILBLAZER FOR THE EUROPEAN E-COMMERCE AND SERVES AS BENCHMARK FOR FUTURE GROWTH

2012 Parcels per capita

2018Parcels per capitaGrowth driver

Further development of recipient services

Cross-border orders ofproducts, which are not available locally

New goods and productcategories, e.g. groceriesand furniture

The European e-commerce will be boosted by improved delivery services and a broader product range

CHUKDE

NLFRDK

CZBESE

ESPL

AT

12

8

6

5

6

6

5

5

3

2

1

1

123

5115126

1462412

242

639410410411

CHUKDE

NLFRDK

CZBESE

ESPL

AT

IT IT 2Source: DHL Parcel Europe


Deutsche Post DHL Group Investor RelationsMay 2015


Main operating and financial trends as expected

Q1 2015 HIGHLIGHTS

PAGE 20

2015/16 guidance confirmed

Structural volume trends of dynamic parcel growth and letter decline once more confirmed in PeP with EBIT flat as revenue growth again offset by higher costs

Express growth momentum fully intact with volume growth feeding further margin increase to drive another strong EBIT performance and higher cash flow

Weak Forwarding performance: new management to review transformation course and focus on operating performance improvement

Supply Chain restructuring initiatives now in execution phase Cash Flow performance showing usual seasonal Q1 pattern with civil servant

pension payment and reversal of year-end effects


Executing on our short-term agenda… Stabilize Forwarding operating performance while reviewing transformation course Execute Supply Chain restructuring measures Negotiate a wage agreement to ensure future competitiveness especially in Parcel

Germany Continue investments in successful Express operations

…to build momentum for our long term strategic and financial goals:

DPDHL GROUP STRATEGIC AGENDA

PAGE 21

Leveraging growth in e-commerce and emerging markets, based on unrivalled, diversified business portfolio

Clear roadmap for margin and profit improvement

Flexible balance sheet and improving cash generation underpin payout policy


Management structure: Frank Appel, interim CEO DHL Global Forwarding, Freight Renato Chiavi, interim CEO DHL Global Forwarding Tobias Meyer, EVP Programs (Transformation) Amadou Diallo, CEO DHL Freight (unchanged)

Weak operational performance requires new management to review transformation course Unchanged commitment to transformation and to increase of efficiency of our

Forwarding business Reviewing transformation course based on pilot country and organizational alignment

analysis

MANAGEMENT UPDATE ON DHL GLOBAL FORWARDING

PAGE 22

First priority: renewed and intensive focus on improving underlying business performance


DHL SUPPLY CHAIN HAS 9 INITIATIVES TO DELIVER STRATEGY 2020

PAGE 23

1 Improvement of underperforming business

2 Operational standardization

3 Commercial standardization

FocusDrive standardization and reduce complexity…

4 Efficient and effective functions

5 Consistent and lean organization globally

6 Culture and mindset shift

ConnectCreate an effective organization globally…

8 Global sectors andproducts

7 Value added services

9 Geographical shift

GrowShift the portfolio…

…to address attractive segments

…to enable change…to increase efficiency


PAGE 24

PeP: STRUCTURAL REDUCTION IN PERSONNEL FACTOR COSTS DUE TO LAUNCH OF NEW PARCEL DELIVERY UNITS

11.90-13.20

17.70

8.50*8.50* 8.50*

12.79

Degree of outsourcing

<5%33%95%100%100%

Deutsche Post AGDHL Delivery GmbH

0%

Wage costs at Deutsche Post AG significantly above competition Launch of new Delivery GmbHs reduces gap to competition since average wage level at

12.79 EUR/h instead of 17.70 EUR/h at DPAG

Average wages, in EUR/hCurrently ~6,000

employees

* Legal minimum wage


PAGE 25

FIRST MILE: Marketplace offer rebranded and going international

PackstationPaketshops Delivery boxesDelivery at Home Parcel box

LAST MILE: Customer-centric range of delivery options with ~30.000 drop off points

PeP: CONTINUOUSLY OPTIMISING OUR PARCEL SERVICE OFFERING

Allyouneed.com Allyouneedfresh.com

• Re-branding of MeinPaket.de

• Launch in Poland

NEW


Steady increase in TDI market share driven by best-in-class global network and service levels

Growth accompanied by continuous strong margin increase; further improvement possible from network, efficiency and scale effects

Growth enabled by targeted investments into our network

Modernizing European air fleet, upgrading capacityand efficiency

Continued investment in hub and ground infrastructure across all geographies

Global TDI Revenue Market Share Development

DHL EXPRESS: SUCCESSFUL TDI STRATEGY

PAGE 26

29% 31% 33% 34%

23% 22% 22% 22%

29% 29% 27% 26%

7% 6% 6% 6%12% 12% 12% 12%

2010 2011 2012 2013

DHL UPS FedEx TNT Others

1) Source: MI 2014 Study: AT, DE, DK, ES, FR, IT, NL, RU, TR, UK, BR, CA, CO, MX, US, CN, HK, IN, JP, KR, SG, AE, SA, ZA

Key Performance Drivers

+14% +9% +6%

+8% +3% +3%Marketgrowth1)


STRATEGY 2020: TOPLINE GROWTH AND MARGIN IMPROVEMENT

PAGE 27

Continued focus on TDI with network, efficiency

and scale effects

Main Strategic Drivers

Stabilize Forwarding operatingperformance while reviewing

transformation course

Standardization, overheadleverage and contractportfolio enhancement

GDP growth assumptions

+5%+2%

Mature Regions

EmergingMarkets

Attractive growth in key addressable market segments within logistics

Estimated Market CAGR 2011‒2020, in EUR

+5-7% +8% +5-6%+4-5%+2-3%+5-6%

Parcel Germany InternationalExpress

Air FreightForwarding

ContractLogistics

Parcel Domestic International

Ocean FreightForwarding

Revenue mix shift to parcel and increased exposure to e-commerce

structural growth trend

All divisions will contribute towards >8% group EBIT CAGR target


FINANCE POLICY, UNCHANGED

Target / maintain rating BBB+

Dividend payout ratio to remain between 40–60% of net profit (continuity and Cash Flow performance considered)

Excess liquidity will be used for Stepwise pension funding

and / or

Share buybacks and/or extraordinary dividends

Dividend proposal of EUR 0.85 to the AGM on May 27, 2015i.e. dividend payments of EUR 1.030bn to DPDHL shareholders on May 28, 2015

2014 DIVIDEND INCREASE OF 6% AND UNCHANGED FINANCE POLICY

PAGE 28

Deployment of Free Cash Flow

2013

€ 0.65

53%40%

59%49%

2010

58%

2012

60%

2011

€ 0.70€ 0.70€ 0.80

50%Underlying Payout Ratio1)

€ 0.852)

1) Adjusted for Postbank effects as well as non-recurring items2) Proposal to AGM

2014


EBIT GUIDANCE CONFIRMED FOR 2015/16/20

PAGE 29

EUR bn 2015 2016 2020

PeP At least 1.3 above 1.3 ~ 3% CAGR 2013-20

DHL 2.1-2.25 2.45-2.75 ~ 10% CAGR 2013-20

CC/Other ~ -0.35 ~ -0.35 <0.5% of group revenue

Group 3.05-3.2 3.4-3.7 >8% CAGR 2013-20

FY 2015:

Free Cash Flow to exceed 2014 dividend

Tax rate around 18%

Gross Capex of around EUR 2.0bn


PAGE 30

Divisional Information


DEUTSCHE POST DHL AT A GLANCE

PAGE 31

Group

Brands

Corporate Divisions

63% market share in letter mail, 43% market share in German parcel market, selected international parcel activities Sales: EUR 15,686m EBIT: EUR 1,298mEmpl.2): 164,582

Post - eCommerce-Parcel

Global Time-Definite-International (TDI) leader with 34% market share

Sales: EUR 12,491m EBIT: EUR 1,260mEmpl.2): 73,009

Express

World´s largest Air and 2nd largest Ocean freight forwarder, No2 in European road freightSales: EUR 14,924m EBIT: EUR 293mEmpl.2): 44,311

Global ForwardingFreight

Global market leader, market share of 8% well ahead next biggest competitorsSales: EUR 14,737mEBIT: EUR 465mEmpl.2): 146,400

Supply Chain

Group revenues 1): € 56.6bn Group EBIT1): € 2.965bn Approximately 440,000 employees

1) Financial year 2014; 2) Average FTEs FY 2014

Corporate Center / Other: Sales: EUR 1,343m; EBIT: EUR -351m


POST, E-COMMERCE & PARCEL


1,738 1,727563 547

Q1 2014Q1 2015

-2.8%-0.6%

Q1 2015Q1 2014

m EUR Mail Communication revenue decline in line with

modest volume decline (-1.7%) Dialogue Marketing also with limited revenue

decline as price increases mostly compensate volume decline (-9.8%)

Parcel Germany revenue growth outpacing strong volume growth of 11.0% supported by price increases

Robust organic growth in international Parcel activities in and outside of Europe, also supported by currency developments

PeP: GOOD GROWTH ACROSS OUR PARCEL ACTIVITIES

PAGE 331) Parcel Europe ex Germany; 2) Parcel outside Europe

Business HighlightsMail Communication revenue Dialogue Marketing revenue

Parcel Germany volumes Parcel Germany revenue

Parcel Europe revenue1) DHL eCommerce revenue2)

9471,062

+12.1%+11.0%m units

165 173 240 302

+25.8%+4.8%

Q1 2015Q1 2014 Q1 2015Q1 2014

Q1 2015Q1 2014 Q1 2015Q1 2014

m EUR

m EUR

m EURm EUR

246 273


PeP – DIVISIONAL RESULTS Q1 2015

PAGE 34

EUR m Q1 2014 Q1 2015 Chg. Management comments

Revenue 3,960 4,101 +3.6% Revenue increase reflecting growth across eCommerce - Parcel activities as well as price increases in Post products

EBIT 396 399 +0.8% EBIT growth constrained by rise in wages and transportation costs as well as expenses for international expansion of eCommerce - Parcel

Operating Cash Flow 137 185 +35.0% OCF increase driven by positive working capital development

Capex 38 64 +68.4% Investments mainly directed to parcel infrastructure expansion


MAIL Division

Mail Communication

Dialogue Marketing

Press Services

Retail Outlets

Pension Services

Global Mail

Parcel Germany

Post

All letters including import /export fromand to Germany. Also includes newservices like E-Post and ADAC Postbus

2013 Revenue, restated: EUR 9,984m

eCommerce - Parcel

Domestic and cross-border parcels and parcel operations in selective markets

2013 Revenue, restated: EUR 5,307m

Asset shifts

Domestic Parcel in Czech Republic, Netherlands, Belgium,Poland and India

Post - eCommerce – Parcel: NEW REVENUE REPORTING STRUCTURE

Letters → Post

Parcels → eCommerce - Parcel

Before 2014 From 2014


eCommerce & Parcel

Market growth assumption (in EUR), 2011-20, p.a.:+5-7% Germany domestic; +8% international domestic Price regulation: No regulatory price cap

Post

Expected average letter volume decline of -2 to -3% p.a.Price regulation: price cap = CPI - 0.2% Stamp price increase1): +2.8% in 2013

+1.6% in 2014 +1.0% as of Jan 1, 2015

e-post revenues: > 300m in 2014

PeP 2020 TARGET: SUPPORTED BY MIX SHIFT TOWARDS PARCEL

PAGE 36

PeP: Revenue Mix PeP: Market Assumptions

1)Average increase on basket of regulated products, applicable to EUR ~3.3bn directly affected Post revenue

E-commerce trend to continue to drive mix shift from letter toparcel products

19%

81% 64%

36%

2010 2014

Mail division excl. Parcel Parcel Germany

Post eCommerce - Parcel


PAGE 37

Comprehensive e-commerce fulfillment solution established

Best-in-class supply chain technology combined with proven regional order fulfillment and domestic & international delivery services

First dedicated eFulfillment warehouse in Columbus,OH launched in March

Adding fulfillment services and products in collaboration with DHL Supply Chain

Established US presence based on former Global Mail activities

Last-mile delivery via USPS

Fully integrated into global postal network for international parcel delivery

iCart product offers fully landed cost calculator for international shipments to customers – integrated in product offering since 2013

eCommerce Business DescriptionDomestic distribution capacities:

As part of Strategy 2020 we are moving up the e-commerce value chain

Consolidation and sortation of domestic and international parcels#4 in US B-2-USPS consolidator market (SmartMail® product)

PeP: DHL eCommerce IS AN ESTABLISHED PLAYER IN THE US


PAGE 38

First eFulfillment facility approaching go-live in Delhi with first global customer

Facility built as a model for potential further rollout of e-fulfillment centers in India and other Asian markets

Blue Dart will provide front-end and customer interface as well as delivery, DHL Supply Chain will contribute warehousing and 3PL expertise

Adding fulfillment services and products in collaboration with DHL Supply Chain

Fully integrated domestic air & ground network, last mile deliver partly through third parties

52% market share in air express

15% market share in ground express

65 ground hubs and 7 air network stations

Roll out of Smart Truck technology to enhance productivity and drive efficiencies

Business DescriptionDomestic distribution capacities:

As part of Strategy 2020 we are moving up the e-commerce value chain

South Asia’s premier express and integrated package distribution companyDomestic market leader for B2B and B2C parcels in India

PeP: BLUE DART PROVIDES BASE FOR DHL eCommerce IN ASIA


WORKING DAYS GERMANY

PAGE 39

2013 2014 2015 2016

Q1 61.6 62.2 62.2 61.2

Q2 60.3 59.3 59.3 62.3

H1 121.9 121.5 121.5 123.5

Q3 65.8 65.8 66 65,8

9M 187.7 187.3 187.5 189.3

Q4 60.2 60.9 63 62,2

H2 126 126.7 129 128

FY 247.9 248.2 250.5 251.5


EXPRESS


Strong start into the year with TDI volume growth of +7.1% ( MEA +12.4%, Europe +10.2%, Asia/Pacific +5.4%, Americas + 0.6%)

Volume growth outpacing revenue growth due to lower fuel surcharge

Strong focus on customers and service quality has driven further market share gains

Growth supported by continuous expansion and improvement of our leading global network, including hub investments across all major geographies

EXPRESS: STRONG TDI GROWTH CONTINUES

PAGE 41

Time Definite International (TDI)1)

Revenues per day in EUR m

Time Definite International (TDI)Shipments per day ‘000s

34.035.2

+3.5%

662709

+7.1%

Business Highlights

Q1 2015Q1 2014

Q1 2015Q1 2014

1) Currency translation impacts are eliminated. Data aggregated with same currency rate


EXPRESS – DIVISIONAL RESULTS Q1 2015

PAGE 42


Revenue 2,879 3,240 +12.5% Strong TDI volume growth supported by positive FX effects. Organic revenuegrowth at 2.3% mainly impacted by significant decrease in fuel surcharge revenue

EBIT 276 332 +20.3% Strong EBIT growth driven by TDI volume growth and network efficiencies, EBIT margin up 60bp yoy to 10.2%

Operating Cash Flow 285 334 +17.2% Strong operating cash flow increase in line with trend in EBIT performance

Capex 39 75 +92.3% Main investments going towards hub and gateway infrastructure upgrade as well as air fleet modernization and expansion


Continued TDI leadership across all regions outside the Americas

DHL EXPRESS: GLOBAL TDI MARKET SHARES

PAGE 43

Global [EUR 20.1bn]

DHL TNT UPS FedEx Others

+x% Change vs 2012 MI study

44%

20%

11%

4%

21%

46%

32%

18%1%

3%

41%

25%

12%

10%

12%

Europe [EUR 6.0bn]Americas [EUR 6.8bn ] Asia Pacific [EUR 6.8bn]

+1%

+2%+1%

34%

26%

22%

6%12%

+1%Source: MI study 2014EU : AT, DE, DK, ES, FR, IT, NL, RU, TR, UKAM : BR, CA, CL, CO, CR, GT, MX, PA, PE, USAP : CN, HK, IN, JP, KR, SGGLOBAL : EU + AM + AP + (AE + SA + ZA)


DHL EXPRESS FOCUS ON TDI

PAGE 44

Continue successful FOCUS strategy

TDI (Time Definite International)The premium segment within Express Industry

Time Definite = Dedicated delivery at a scheduled time of dayInternational = Cross-Border Shipment (intra- or between continents)TDI: requires dense and broad international network

TDD: Time Definite Domestic Revenue Share = Delivery at scheduled time within one country. DDI: Day Definite InternationalDDD: Day Definite DomesticACS: Air Capacity Sales (re-sale of spare capacity on dedicated fleet to optimize utilization, not sold by core Express sales teams)

DHL Express Core Product

58%12%

5%

14%

11%

2009 Revenue distribution

TDI TDD DDI DDD ACS / Other

75%

8%

3%2% 12%

2014 Revenue distribution


DHL EXPRESS: VIRTUAL AIRLINE MODEL & AIR CAPACITY SALES

PAGE 45

Virtual Airline

Block Space Agreement, guaranteed air cargo product.

Express TDI core product, capacity based on average utilization, adjusted on a daily basis

CORE Flex & Air Capacity Sales Flex, a set amount of the Total Spare Capacity to be utilised for TDI core volume surge and/or air cargo filler traffic

Air cargo guaranteed, a set amount of the Total Spare Capacity guaranteed for priority traffic & key customers

Air Capacity Sales

Capacity Commitment

Approx. 500 airports and 22 major hubs connected through 1. Dedicated air: >250 aircrafts with 17 partner airlines on

>600 daily flights2. Purchased air: >300 commercial airlines with >1.800

daily flightsCORE

TDI CAPA-CITY

FLEX

ACS GUAR.

BSA

22%

26%

52%

0 - 90 Days (incl.Purchased Air)91 - 360 Days

Fixed


FORWARDING, FREIGHT


Air and ocean volume growth slowing, mainly due to EMEA and AP regions

GP/unit stable in Air Freight at low levels and Ocean Freight GP/unit decline reflect continued difficult industry environment

Weak divisional EBIT performance due to complexity of NFE implementation and associated organizational changes

New management sets priority on improving business performance – with unchanged commitment to transformation based on comprehensive review

GLOBAL FORWARDING, FREIGHT: WORKING TOWARDS STABILISATION

PAGE 47

Air freight ‘000s Tons

Ocean freight ‘000s TEU1)

932935

+0.3%

688 704

Q1 2015

+2.3%

Q1 2014

1) Twenty Foot Equivalent Unit

Business Highlights

Q1 2015Q1 2014


GLOBAL FORWARDING, FREIGHT– DIVISIONAL RESULTS Q1 2015

PAGE 48


Revenue 3,523 3,789 +7.6% Revenue increase driven by volume growth in ocean freight and FX

Gross Profit 843 859 +1.9% Continued difficult market environment with margin pressure in both AFR and OFR

EBIT 49 17 -65.3% Further affected by ongoing NFE transformation program and low GP/unit in AFR and OFR

Operating Cash Flow -100 -160 -60.0% Mainly reflecting EBIT decline and unfavorable working capital development

Capex 22 40 +81.8% Low capex reflecting asset light business model


SUPPLY CHAIN


Sound order intake in Q1 (EUR 260m) especially in Automotive, Consumer and Life Sciences & Healthcare

Revenue growth across all verticals, strongest in Automotive, Consumer sectors and Life Sciences & Healthcare

Further steps taken in implementing Strategy 2020 as presented at last Capital Markets Tutorial

Restructuring charges cover implementation of consistent and lean organizational structure, addressing underperforming business areas as well as productivity measures

SUPPLY CHAIN: SOLID PERFORMANCE GIVEN RESTRUCTURING

PAGE 50

New signings, EUR m1)

Revenue by sector Q1 2015

175 260

Q1 2014 Q1 2015

1) Annualized revenue

23%

19%

20%

10%

11%

2%10% 5%

Technology

Life Sciences & Healthcare

Consumer

RetailOthers

Williams Lea

Energy

Automotive

Business Highlights


SUPPLY CHAIN – DIVISIONAL RESULTS Q1 2015

PAGE 51


Revenue 3,506 3,942 +12.4%FX benefits mainly driven by stronger USD and GBP. Organic revenue up 0.8% supported by new business across all regions (UK,US and APAC) but still held back by a deliberate customer loss in North America

EBIT 85 53 -37.6% EBIT declining mainly due to restructuring costs as timing effects from real estate transactions

Operating Cash Flow 28 -112 n.a. Cash flow down yoy mainly due to timing effects

Capex 65 73 12.3% Higher capex reflecting phasing of new contract investments


SUPPLY CHAIN: TAKING PERFORMANCE TO THE NEXT LEVEL

PAGE 52

ROCE, incl. Goodwill

DHL Supply Chain is a successful member of DPDHL family of divisions

12% 13% 14% 15%

2011 2012 2013 2014

Supply Chain Strategy 2020 set to deliver further performance improvement

Strong and increasing returns… …based on resilient, asset-light business model

18%

10%

27%

45%Warehousing

Transportation

Williams Lea

Value Added Services

1.8% 2.7% 2.9% 3.1% 3,2%

2010 2011 2012 2013 2014

4-5%

2020

EBIT marginNew 2020

margin target:

DPDHL Capital Markets Tutorial Workshop

London, November 13, 2014

http://www.dpdhl.com/en/investors/events_and_presentations/capital_markets_day.html

DPDHL Capital Markets Tutorial Workshop

London, November 13, 2014

http://www.dpdhl.com/en/investors/events_and_presentations/capital_markets_day.html

For more information


PAGE 53

Appendix


Q1 REFLECTS TRANSFORMATION & RESTRUCTURING FOCUS

PAGE 54

Flat Group EBIT with divisional performance showing the expected mixed picture

REVENUE EBIT

Q1 2014 Q1 2015 Change Q1 2014 Q1 2015 Change

PeP 3,960 4,101 +3.6% 396 399 +0.8%

Express 2,879 3,240 +12.5% 276 332 +20.3%

Forwarding, Freight 3,523 3,789 +7.6% 49 17 -65.3%

Supply Chain 3,506 3,942 +12.4% 85 53 -37.6%

Group 13,569 14,767 +8.8% 727 720 -1.0%


GROUP P&L Q1 2015

PAGE 55


Revenue 13,569 14,767 +8.8% Revenue development supported by currency effects. Organic growth of 2.1% with growth in all four Divisions / industries. Impact also from lower energy prices

EBIT 727 720 -1.0% Group EBIT about flat as strong Express growth is offset by transformation and restructuring related costs in Forwarding and Supply Chain

t/o PeP 396 399 +0.8% Static operating profit as revenue growth driven by eCommerce - Parcel activities and price increases is countered by factor cost inflation

t/o DHL 410 402 -2.0%Continued strong performance across all major metrics in Express. Declines in Supply Chain and Forwarding, Freight EBIT mainly reflect planned restructuring and transformation initiatives

Financial result -80 -64 +20.0% Improvement driven by benefits from lower interest rate environment on interest expense for bonds and provisions as well as FX effects

Taxes -123 -115 +6.5% Tax rate of 17.5% in line with ~18% full-year guidance

Cons. net profit1) 502 495 -1.4% Net profit and EPS about flat, in line with stable operating profit development

EPS (in EUR) 0.42 0.41 -2.4% Strong increase in net profit attributable to non-controlling interests

1) Attributable to Deutsche Post AG shareholders


EUR m Q1 2014 Q1 2015

Cash from operating activities before changes in Working Capital 793 737

Q1 cash generation as every year burdened by payment of full-year contribution for civil servant pension scheme (EUR 530m) Tight management of Group working capital helped to minimize flow-back of typical year-end cash effects

Changes in Working Capital -709 -658

Net cash from operating activities after changes in Working Capital 84 79

Net Capex -401 -526 Free Cash Flow decline due to increased capex spend reflecting continued investments in our growth markets as well as timing effects Net interest line benefitted from one-off effect of EUR 76m related to monetization of interest rate swaps

Net M&A 0 0

Net Interest -31 70

Free Cash Flow -348 -377 FFO/Debt at 24.9% (year-end 2014: 27.7%)

FREE CASH FLOW Q1 2015

PAGE 56

Seasonal factors drive usual Free Cash Outflow in Q1


Seasonality drives net debt increase as usual in Q1Annual contribution to civil servant pension of EUR 530m (o.w. 130m in EBIT/OCF and 400m in W/C)

NET DEBT (-)/LIQUIDITY (+)

PAGE 57

-2,077

70

-526

-658737

-1,499

Othereffects

Net capex

Changesin W/C

Net debt(Dec 31, 2014)

OCF before change in W/C

Net debt(Mar 31, 2015)

-201

in EUR m

Net interest


1551

1345

2010 2011 2012 2013 2014

Sustained increase in Operating Cash Flow Provides funding for investment in future growth, in particular in Parcel and Express While simultaneously driving improved Free Cash Flow generation

IMPROVING CASH FLOW GENERATION

PAGE 58

3,0402,989

2,2442)2,371OCF:1,927

in EURm

2010-14 CAGR:OCF: >10%

Net capex: >10%

FCF: >20%

1) includes net M&A and net interest 2) Adjusted for non-recurring items

Use of OCF: Net Capex Other1)

FCF


DBO pensions in Germany No regulatory funding requirement

Pensions paid partially from plan assets and partially from current OCF

Impact of declining discount rates Balance sheet: net pension provision up 1.5bn in Q1 2015 due to

another step-down in Euro discount rate

P&L: slight increase in staff costs expected in 2015 (mainly due to higher current service costs), mostly offset by small decline in finance costs

Cash flow: cash outflow not directly affected as actual pension payments and employer contributions to plan assets not affected by fluctuations in applied discount rate levels

REMINDER ON PENSIONS: DEFINED BENEFIT OBLIGATIONS (DBO)

PAGE 59

7,138 8,635

10,96111,849

Net PensionProvision

Plan assets

Dec. 31, 2014

18,099Total DBO

2014 Q1 2015

Average Discount Rate (quarter-end) 2.62% 2.04%

EUR Discount Rate (quarter-end) 2.25% 1.50%

in EUR m

Lower discount rates increase balance sheet liability but have no direct impact on cash generation

Mar. 31, 2015

20,484


Gross Capex / Sales ratio -Group & by division

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2007 2008 2009 2010 2011 2012 2013 2014

EXPRESS GROUP PeP SUPPLY CHAIN DGF

STABLE CAPITAL INTENSITY EXPECTED

PAGE 60

GROUP AVERAGE

EXPRESS ~4%

SUPPLY CHAIN ~2%

PeP ~3%

FORWARDING ~1%

~3%

Gross Capex intensity, 2007–2014 average


STRATEGY 2015 HAS DRIVEN SIGNIFICANT OPERATING IMPROVEMENT

INVESTOR RELATIONS | MAY 2015 PAGE 61

PeP: EBIT stabilization delivered DHL EBIT margins(2): good progress, more to come to contribute to ~10% DHL EBIT CAGR target

2010 Q1 2015

4.4%

2.7%1.8% 1.7%

1,120 1,107

1,199

1,286 1,298

2010 2011 2012 2013 2014

1)

1)in EUR bn

Strategy 2020 target:3% EBIT CAGR

2013-20

Strategy 2020 target:3% EBIT CAGR

2013-20

Strategy 2015 EBIT target:

min. EUR 1bn

10.2%

2.9%

1)Reported FY 12 EBIT including EUR -151m one-off effect from VAT settlement; Reported FY13 was restated by EUR ~60m for asset shift from DHL implemented on January 1, 20142)EBIT margin, last 12 months (rolling)

Express: strong improvement

Forwarding, Freight: currently affected by NFE and low GP margins

Supply Chain: steady progress

Group revenue footprint

22% 30%

78% 70%

Today Target

Mature Markets Emerging Markets

Building on our leading market positions in growth regions, 30% emerging market targets is AMBITIOUS BUT ACHIEVABLE

2020 target2013

OUR AMBITION FOR THE EMERGING MARKETS


FOCUS. CC/OTHER COSTS

PAGE 63

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

0.7%

0.8%

2009 2010 2011 2012 2013 2020

TAR

GET

0.5%

Corporate bodies (e.g. CB, SVB)and legal obligations/ foundations

Investments into growth & cross-divisional initiatives

Core Corporate Center costs

CC / Other cost, as % of revenue CC / Other cost structure, 2014

20%

60%

20%


THIS PRESENTATION CONTAINS CERTAIN STATEMENTS THAT ARE NEITHER REPORTED RESULTS NOR OTHERHISTORICAL INFORMATION. THESE FORWARD-LOOKING STATEMENTS ARE SUBJECT TO RISKS ANDUNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED INTHE FORWARD-LOOKING STATEMENTS. MANY OF THESE RISKS AND UNCERTAINTIES RELATE TO FACTORS THATARE BEYOND DEUTSCHE POST AG’S ABILITY TO CONTROL OR ESTIMATE PRECISELY, SUCH AS FUTURE MARKETAND ECONOMIC CONDITIONS, THE BEHAVIOR OF OTHER MARKET PARTICIPANTS, THE ABILITY TOSUCCESSFULLY INTEGRATE ACQUIRED BUSINESSES AND ACHIEVE ANTICIPATED SYNERGIES AND THE ACTIONSOF GOVERNMENT REGULATORS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESEFORWARD-LOOKING STATEMENTS, WHICH APPLY ONLY AS OF THE DATE OF THIS PRESENTATION. DEUTSCHEPOST AG DOES NOT UNDERTAKE ANY OBLIGATION TO PUBLICLY RELEASE ANY REVISIONS TO THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE OF THIS PRESENTATION.

THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TOSUBSCRIBE FOR OR BUY ANY SECURITY, NOR SHALL THERE BE ANY SALE, ISSUANCE OR TRANSFER OF THESECURITIES REFERRED TO IN THIS PRESENTATION IN ANY JURISDICTION IN CONTRAVENTION OF APPLICABLELAW.

COPIES OF THIS PRESENTATION AND ANY DOCUMENTATION RELATING TO THE OFFER ARE NOT BEING, ANDMUST NOT BE, DIRECTLY OR INDIRECTLY, MAILED OR OTHERWISE FORWARDED, DISTRIBUTED OR SENT IN ORINTO OR FROM AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD BEUNLAWFUL.

THIS DOCUMENT REPRESENTS THE COMPANY‘S JUDGMENT AS OF DATE OF THIS PRESENTATION.

DISCLAIMER


INVESTOR RELATIONS CONTACTS

PAGE 65

Sarah Bowman• +1 212 381 3463 • E-mail: [email protected]

Sebastian Slania• +49 228 182 63203• E-mail: [email protected]

Martin Ziegenbalg, Head of Investor Relations• +49 228 182 63000• E-mail: [email protected]

Robert Schneider• +49 228 182 63201• E-mail: [email protected]

Christian Rottler• +49 228 182 63206• E-mail: [email protected]


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