Deutsche Post · PDF fileEnsure successful implementation of NFE ... DEUTSCHE POST DHL AT A GLANCE 1) Average FTEs FY 2013 The postal service for Germany Post - eCommerce - Parcel

Deutsche Post DHLInvestor Relations

August 2014

Strong EBIT growth in Q2, despite continuing FX headwinds

INTRODUCTORY HIGHLIGHTS

Flat PeP EBIT including higher factor costs and one less working day Continued strong Express EBIT growth with margin at 10.7% for the quarter Solid cash flow generation with dividend payment in Q2 2014 Group guidance confirmed

2015 guidance modified, introduction of 2016 guidance

Ensure successful implementation of NFE Streamline Supply Chain organization and exit unattractive businesses/contracts

PAGE 2INVESTOR RELATIONS | AUGUST 2014

Further actions under evaluation to strengthen Forwarding and Supply Chain divisions

OUR NEXT HORIZON: ACCELERATING ORGANIC GROWTH

INVESTOR RELATIONS | AUGUST 2014 PAGE 3

Inorganic expansion

1998–2008

Create the base

1990–1997 2014–2020

Accelerating organic expansion

Unlocking our potential

2009–2015

Our markets are affected by four major actionable global trends

STRUCTURAL MARKET GROWTH TRENDS

Automation drives efficiencies

Importance of data leads to new ways of running businesses

Increasing importance of social and ethical behavior

Growing need for greener solutions

More “fine distribution” and direct shipping, also in B2B

Multi-channel delivery for B2C

Growth in long-haul trade and transport slowing down

Importance of emerging markets still increasing

Accelerating impact of process technology and automation

Continued global trade growth but shift in pattern

Acceleration of eCommerceand more demand for last-mile solutions

Increasing demands for responsible business


LOGISTICS MARKETS OFFER ATTRACTIVE GROWTH


Plenty of room to grow within logistics market1)

Attractive growth in key addressable market segments within logistics

Market share DPDHL in total logistics market2)

Share of market with significant DPDHL presence3) 19%4%

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

1) 2011 data; 2) i.e. Global SameDay/ Courier, Parcel, Express, AFR, OFR, Ind. Proj., LTL, FTL and Cont. Logistics; 3) i.e. >5% market share (in value) in respective market

We expand in new segments …

1. Leader in eCommerce related logistics

2. Accelerate footprint shift towards emerging markets

3. Tap new market opportunities for organic expansion

… to achieve sustainable above-market growth.

We connect across the organization …

1. One global team

2. Certified specialists for everything we do

3. Connected approach in operations, commercial, green solutions and shared services

… to achieve quality leader-ship and service excellence.

We focus on what has made us successful…

1. Logistics as our core

2. Committed to the needs of our stakeholders & our planet

3. A family of divisions

… to further expand margins.

INVESTOR RELATIONS | AUGUST 2014

Strategy 2020

STRATEGY 2020: FOCUS. CONNECT. GROW.

FOCUS. CONNECT. GROW.

PAGE 6

Parcel Europe Leverage & invest in

businesses transferred from DHL (BNL, PL, CZ)

Re-orient and broaden service offering towards B2C

Gradually expand European coverage

The key element of future profit growth

Parcel Germany Continue success story

Expand and innovate production capacity

Invest in new service features e.g., private parcelbox, allyouneed.com

DHL Parcel

Americas Asia Build on existing businesses

Global Mail US

Blue Dart India

Int’l B2C shipping services/Domestic and destination based eFulfillment as a start in emerging markets

Aspiration: Integrated offer of all eCommerce-related logistics and eFacilitation services

DHL eCommerce


PeP: STRATEGY FOR SUBDIVISION “eCommerce & Parcel”

Consumer centric innovation leader on the first and last mile in Germany

DHL Paketshops

Shopping platforms

Packstation

Private parcelbox

Evening delivery/Flexible delivery

Grocery delivery

EXAMPLES


PeP: SUCCESSFUL PARCEL MODEL IN GERMANY

MotivatedPeople Great Service Quality

QCC

LoyalCustomers

ProfitableNetwork

10% margin by 2015

CIS program is a key success factor enabling our

employees to deliver the best performance for our

customers

Focus on the best service for our TDI customers

driving industry-leading volume growth

Insanely customer centric, supported by strengthening

brand awareness

Strict discipline on pricing tools / principles

Virtual airline balances service quality, planning flexibility and operating

costs

Focus on costs and cash generation


EXPRESS: KEEP EXECUTING OUR SUCCESSFUL FOCUS STRATEGY

PAGE 9

EXPRESS GLOBAL TDI MARKET SHARES

Global [EUR 20.1bn]

DHL TNT UPS FedEx Others

Updated market study confirms market share gains

+x% Change vs 2012 MI study

Source: MI study 2014, annual reports ; like-for-like definition of regions vs 2012 MI dataAM: BR, CA, MX, US; EU: AT, DE, DK, ES, FR, IT, NL, RU, TR, UK MEA: AE, ZA ;SA AP: CN, HK, ID, IN, JP, KR, SG

PAGE 10

51%

5%9%

12%

23%

42%

19%

10%

4%

24%

47%

33%

16%4%

41%

25%

12%

10%

12%

Europe [EUR 6.0bn]Americas [EUR 6.8bn ] Asia Pacific [EUR 6.8bn] MEA [EUR 0.5bn]

+/-0%

+1% +1%+1%

33%

26%

22%

5%

13%

+1%


NFE: TRANSFORMATION PROCESS FOR GLOBAL FORWARDING

NFE is the right solution, we want to maximize the opportunity

NFE System Rollout Organisational Alignment

Key observations from first pilots Platform delivers expected

functionalities in terms of better transparency to drive Expected productivity improvements Enhanced customer service

However, data migration and depth of process changes require more time-intensive transition and training than initially expected

Integral part of NFE Current status: over 30 countries fully

aligned to new organization, 50 more just added leaving some 60 more to come

Deep change in operations and organization come with the challenge to ensure successful NFE implementation with minimum impact on daily business and performance


DHL Supply Chain established as a solid EBIT contributor to the group but performance can be further enhanced to strengthen delivery towards 2020 targets

SUPPLY CHAIN: TAKING PERFORMANCE TO THE NEXT LEVEL

Key objectives Leverage process standardization to improve efficiencies and scalability Achieve maximum leverage of overhead (through shared service centers) Address underperforming businesses Shift portfolio to higher growth segments and regions

Key Implications Non-recurring restructuring charges in 2015 – amount under

evaluation


GUIDANCE SUMMARY

EBIT FY 2014 FY 2015 FY 2016

PeP ~ EUR 1.3bn (from ~ EUR 1.2bn) Better than 2014 > EUR 1.3bn

DHL EUR 2.0–2.2bn (from EUR 2.1-2.3bn) Better than 2014 EUR 2.45-2.75bn

CC/Other Better thanEUR -400m ~ EUR -350m ~ EUR -350m

Group EUR 2.9-3.1bn Significantlybetter than 2014 EUR 3.4-3.7bn

Shift in composition of 2014 guidance - 2015 guidance modified - new 2016 targets introduced

2014 Free Cash Flow to at least cover 2013 dividend Tax rate around 16% (from ~19%) Gross Capex of around EUR 1.9bn


GUIDANCE SUMMARY

EBIT

PeP

DHL

CC/Other

Group

2020 guidance and assumptions remain unchanged

Free cash flow generation to remain priority No ambition for major M&A Finance policy including payout ratio range to remain unchanged

FY 2020

~3% CAGR 2013-20

~10% CAGR 2013-20

< 0.5% of Group revenue

>8% CAGR 2013-20

2013 base

EUR 1.286bn

EUR 1.997bn

EUR -422m

EUR 2.861bn


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

Deployment of Free Cash Flow

CONFIRMATION OF FINANCE POLICY


Leverage e-Commerce & EM growth Promote sustainable, organic growth

Continue EBIT margin expansion Increase free cash flow

PAGE 16

STRATEGY 2020: ENTERING THE EXECUTION PHASE


DEFINING THE LOGISTICS INDUSTRY

Delivering good EBIT growth in H1 2014 despite FX and weak macro enviroment

Near term targets adjusted as our focus shifts towards Strategy 2020

Additional measures currently under evaluation to strengthen our footing

Appendix


DEUTSCHE POST DHL AT A GLANCE

1) Average FTEs FY 2013

The postal service for Germany

Post - eCommerce - Parcel

Sales: EUR 14,452m EBIT: EUR 1,226mEmpl.1): 149,692

The logistics company for the world

International and Domestic Express

Sales: EUR 12,712m EBIT: EUR 1,133mEmpl.1): 84,986

Global Air, Ocean and Road Freight

Sales: EUR 14,838m EBIT: EUR 483mEmpl.1): 44,174

Global Supply Chain Solutions

Sales: EUR 14,277mEBIT: EUR 441mEmpl.1): 143,761

Corporate Center / Other: Sales: EUR 1,251m; EBIT: EUR -422m

2013 key figures Group: Sales: EUR 55,085m; EBIT: EUR 2,861m; Employees1): 435,520


Small reported revenue increase as adverse currency effects (-2.7%) continue. Organic increase of +4.2% supported by growth in all divisions

Strong growth in Group EBIT: excluding Q2 2013 one-offs, EBIT growth of +11% despite significant FX headwinds

PeP EBIT flat excl. EUR 50m one-off in Q2 2013 as good volumes as well as price increases offset factor cost increases and one less working day

DHL EBIT well up despite significant FX effects and weakness in Forwarding. Strong EBIT growth and margin increase in Express

Financial result comparison primarily affected by positive one-time effect in Q2 2013

Lower taxes reflect updated estimated full year tax rate of 16% - related to recognition of additional deferred tax assets

Net profit up +9% yoy as better EBIT and tax rate offset lower financial result

GROUP P&L Q2 2014

1) 2013 One-offs: EUR 50m postage stamp provision utilization2) 2013 One-offs: EUR -21m SC disposal losses & restructuring3) Positive one-time effect of EUR 42m in Q2 20134) Attributable to Deutsche Post AG shareholders

EUR m Q2 2013 Q2 2014 Chg.

Revenue 13,605 13,695 +0.7%

EBIT 619 654 +5.7%

t/o PeP1) 238 188 -21.0%

t/o DHL2) 488 540 +10.7%

Financial result3) -40 -95 >-100%

Taxes -127 -70 +44.9%

Consolidated net profit4) 422 461 +9.2%

EPS (in EUR) 0.35 0.38 +8.6%


Major Free Cash Flow components close to previous year levels

Cash-out for capex only slightly up yoy due to phasing of investments (end of 2013 phasing effects having been absorbed in Q1)

FFO/Debt at 30.8%(year-end 2013: 34.4%)

FREE CASH FLOW Q2 2014

EUR m Q2 2013 Q2 2014

Cash from operating activities beforechanges in Working Capital 732 729

Changes in Working Capital -236 -246

Net cash from operating activities after changes in Working Capital 496 483

Net Capex -216 -235

Net M&A -11 3

Net Interest -34 -43

Free Cash Flow 235 208

FCF generation in line with good previous year performance


NET DEBT (-)/LIQUIDITY (+)

-2.944-321

-636

-9561.522

-1.499

-1.054

Usual increase in net debt in H1 - annual dividend payment in Q2

Net debt(Jun 30, 2014)

Other effectsNet capexChangesin W/C

Net debt(Dec 31, 2013)

OCF before change in W/C

Net dividend


5.381 6.016

10.02310.310

MOVEMENTS IN NET PENSION PROVISION

Net Pension Provision

Plan assets

Mar 31, 2014

in EURbn

Total Defined Benefit Obligation

EUR 15.4bn • Net pension provision roseprimarily as a result of decliningdiscount rates.

• Plan assets rose as returns wereabove calculated interest income

Highlights

June 30, 2014

Total Defined Benefit Obligation

EUR 16.3bn


Mar. 31, 2013 Jun. 30, 2014

Germany 3.50% 3.00%

UK 4.25% 4.25%

Other 3.27% 2.00%

Total 3.70% 3.37%

GROUP

PeP

SUPPLY CHAIN

FORW. FREIGHT

EXPRESS

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

EXPRESS GROUP PeP SUPPLY CHAIN DGF

STABLE CAPITAL INTENSITY EXPECTED

Gross Capex intensity2007-13 average

~3%

~3%

~2%

~1%

~4%


2013 DIVIDEND: INCREASE OF 14%

• Net profit growth driven by operating performance, better financial result and lower tax rate

• Dividend of EUR 0.80 per share of EUR 967m total was paid on May 28, 2014 to shareholders

• Adjusted for major non-recurring items this reflects a payout ratio of 49%: in line with our dividend policy target payout ratio of 40–60%

1) Adjusted for Postbank effects as well as non-recurring items

2013

EUR 0.65

53%

40%

59%49%

2010

58%

2012

60%

2011

EUR 0.70EUR 0.70EUR 0.80

Underlying Payout Ratio1)

Dividend of EUR 0.80 per share


Strong EBIT growth converted into even stronger OCF increase Major drivers:

-2.000

-1.000

0

1.000

2.000

3.000

2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 20132009 2010 2011 2012 2013

EBIT Change in Provisions Change in WC OCFSome volatility from timing effects and economic cycle, but overall low WC intensity

Declining cash-outs (utilization), mainly due to restructuring provisions tailing off

1) Adjusted for non-recurring items

1)1)

OPERATING CASH FLOW DEVELOPMENT 2009-2013


3,000

2,000

1,000

-1,000

-2,000

EUR m

PAGE 25

Turnaround in FCF generation lays base for further improvementMajor drivers:

-1.500

-500

500

1.500

2.500

2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

1) Adjusted for non-recurring items

1)

FREE CASH FLOW DEVELOPMENT 2009-2013

2009 2010 2011 2012 2013 2009 2010 2011 2012 20131)


OCF Net Capex Net Cash from M&A FCF

2,500

1,500

-1,500

EUR m

PAGE 26

PROFITABILITY IMPROVEMENT SEES FURTHER PROGRESS BUT STILL MORE WORK TO BE DONE

Margin improvement >100bps in 2013 driven by:• Increasing core TDI share in product mix• Efficiency gains and scale effects in ground and air

Margin slightly up, reflecting:• Benefits from internal optimization programs and new

contracts • Weak economic environment, esp. in Europe• One-off effects net out over the full year

Margin stable as cost containment made up for:• Weak volume environment• Increase in NFE costs

1) EXPRESS FY2012 margin excl. EUR 113m one-off items from VAT, restructuring provision release and disposal gain in Q2 2012 2) FY2010 margins excl. non-recurring items (restructuring)

8.9%8.7%7.8%7.1%7.8%1)

2013 shows expected margin acceleration in Express

3.3%3.3%2.9%2.8%

FY 2013

3.1%

FY 2012

2.9%

FY 2011

2.7%

FY 2010

2.1%2)


GDP, real CAGR 2011‒2020e Demographics, e.g. India and China to provide >50% of increase in global workforce with college education by 2030

Continuing urbanization, e.g., in China expected to reach 70% by 2030

Growing consumer base, e.g., global middle class set to grow 2.6 fold by 2030 with 90% coming from Asia pacific

Macro trends continue to support high growth in emerging markets

Growth differential expected to continue

2.0%5.4%

Mature Emerging

USA UK Japan Western Europe …

China India Brazil South East Asia …

EMERGING MARKETS CONTINUE TO GROW STRONGER

Source: IHS Global Insight


STRUCTURAL TREND “EMERGING MARKETS” INTACT AS DEVELOPING MARKETS POSTING ABOVE-AVERAGE GROWTH

24%

9.6

2009

15%16%

2013

32%

12.3

2009 2013

12%

12.014.2

9%7% 7%

2009

7.8

26%14%

2013

10.6

28%17%

Revenue1): EUR bn

+9%+14%

+7%CAGR

1) Based on external 3rd party revenue, region according to customer invoice

Emerging Markets drive growth across DHL Divisions

Express

Global TDI leadership with key strengths in growth markets

+14%+9%

+8%

Forwarding

Global No. 1 in Air freight, No. 2 in Ocean freight

+12%+17%

+4%

Supply Chain

Market leader in contract logistics in Asia and Latin America

Revenue1): EUR bn Revenue1): EUR bnCAGR CAGR

Asia PacificLatin America, Middle East, Africa


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



POST, E-COMMERCE & PARCEL

Focus. Connect. Grow.

PAGE 31

PEP – SOLID VOLUME DEVELOPMENT

Mail Communication volumes (in m pieces)

2.091 2.093

Q2 13 Q2 14

PeP – SOLID VOLUME DEVELOPMENT

Volume increase in Post products reflects Flat Mail Communication volumes,

supported by EU and regional elections Increase in Dialogue Marketing volumes

due to elections

Continued growth in German Parcel business driven by B2C trend towards e-commerce

Dialogue Marketing volumes (in m pieces)

2.206 2.305

Q2 13 Q2 14

Parcel Germany volumes (in m pieces)

PAGE 32

Business Highlights

223 236

Q2 13 Q2 14


Revenue flat despite one less working day - driven by stamp price increase and positive volume development

EBIT flat yoy excluding last year’s postage stamp provision utilization (EUR 50m) despite rising factor costs – i.e. 3.1% yoy wage increase and higher costs related to Parcel infrastructure investments

Cash flow down yoy due to financing of parcel infrastructure and very positive working capital development in Q2 last year

Capex below previous years’ level due to timing differences. Main investments going towards Parcel infrastructure upgrade and expansion

PeP – DIVISIONAL RESULTS Q2 2014

PAGE 33

1) 2013 One-offs: EUR 50m postage stamp provision utilization

EUR m Q2 2013 Q2 2014 Chg.

Revenue 3,642 3,642 +/-0.0%

EBIT1) 238 188 -21.0%

Operating Cash Flow 308 188 -39.0%

Capex 71 62 -12.7%


4 years after launch E-POST is firmly established in the secure communications market

Partnerships with major business customers in key sectors e.g. insurance, banking, technology and energy

More than EUR200m revenue planned for 2014

Break even planned for 2015

34

New digital services E-POST is a success

New customers

PVS: Payment clearing system for doctors and hospitals

End-to-End encryption provides a legally compliant basis for doctors, lawyers and public officials for electronic communication1)

E-POSTBRIEF successfully tested with various insurance companies

E-POST allows business customers to transform their information management systems through digitalization and processing of incoming and outgoing mail

New customers

Regular additions to the E-POSTportfolio for private and for business customers e.g.

E-POST KontoPilotAll payment solutions in one place

E-POSTSCANReceive letter mail digitally via smartphone, tablet, PC

E-POSTBUSINESS BOX Plug-and-play device for E-Postbrief business customers

1) §203 StgB (German Criminal Code): Personal data privacy protected by law

E-POST – ON TRACK TO BREAK EVEN IN 2015


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

PAGE 35

Old Structure New Structure


MAIL: PROPOSED LETTER PRICING REGULATIONNEW PRICE CAP FORMULA REVISED TO CPI-0.2%

Revised price cap regime offering more potential to partially offset factor cost inflation

• Proposed price cap of Federal Network Agency1)

– Formula: x-factor reduced from 0.6 to 0.2%– Regulation valid until Dec 31, 2018– Allowing potential average price increase of 1.6%

on Jan 1, 20142)

Directly impacted Mail revenues of EUR 3.3bn3)

1) Federal Network Agency = Bundesnetzagentur; CPI = German Consumer Price Index 2) 1.6% = 1.8% inflation rate minus 0.2% x-factor; based on arithmetic average of the monthly CPI values for reference period from July 2012 - June 2013: 1.6% price increase applicable based on weighted average across the relevant Mail product portfolio as per price-cap regulation; 3) 2012 revenues affected subject to price-cap regime


OVERALL UNCHANGED VOLUME TRENDS IN GERMANY

Overall volumes in Mail Germany declined at an average rate of only 1.8% through Strategy 2015

Mail Communication benefitted from discontinuation of product “Infobrief” in 2013

Dialogue Marketing volumes continue to be under pressure

Parcel Germany continues to show strong development. Market growth rates should come down slightly (expected CAGR ~6%)

Volume development

7.96

MailCommunication

2013

7.82

2009

10.90

DialogueMarketing

9.75

in bn items

0.761ParcelGermany

1.026in bn items

20132009

20132009

19.65

21.16Mail Germany

20132009


WORKING DAYS GERMANY

2012 2013 2014 2015

Q1 64.2 61.6 62.2 62.2

Q2 59.3 60.3 59.3 59.3

H1 123.5 121.9 121.5 121.5

Q3 64.8 65.8 65.8 66

9M 188.3 187.7 187.3 187.5

Q4 60.2 60.2 60.9 63

H2 125 126 126.7 129

FY 248.5 247.9 248.2 250.5


EXPRESS



EXPRESS – STRONG TDI GROWTH CONTINUED

Time Definite International (TDI)Revenues per day in EUR m

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

647700

Q2 13 Q2 14

35,438,5

Q2 13 Q2 14

Continued strong TDI shipment growth – with all regions contributing

Highest TDI shipment per day growth rates in Asia Pacific (+11.9%), followed by the Americas (+11.7%) and MEA (+10.3%) while Europe (+3.9%) again posted slower growth reflecting active yield management

TDI revenue per day growth staying ahead of volume growth driven by increase in average weight

Strong margin increase driven by better product mix, higher network utilization and ongoing process improvement initiatives

Business Highlights


Revenues increase by +2.5% as strong TDI volume growth is substantially offset by negative currency effects. Organic revenue growth +7.2%

EBIT up 17.7% yoy as result of increased TDI volume, higher efficiency in aviation as well as indirect costs management. EBIT margin at a record of 10.7%

Major one-offs mutually off-set in the quarter withEUR 104m release of restructuring provision and EUR -104m aviation fleet impairment

Strong operating cash flow increase in line with trend in operating performance

EXPRESS – DIVISIONAL RESULTS Q2 2014

EUR m Q2 2013 Q2 2014 Chg.

Revenue 3,015 3,089 +2.5%

EBIT 282 332 +17.7%

Operating Cash Flow 276 345 +25.0%

Capex 81 85 +4.9%


EXPRESS: NETWORK EXPANSION ENABLING GROWTH

East Midlands hub (£90 million) Southern hub, near LHR (£32 million) New facilities in Manchester, Croydon and Sheffield (£34 million)

UK – GBP 156m

Largest global gateway opening 2016

Tokyo – EUR 67m

Leipzig European hub(€150 million) Stuttgart air-road depot(€28 million)

Germany – EUR 178m

QueretaroConversion of domestic hub to air hubMexico Total investments of USD 160m expected in 2012-17

Mexico – USD 14m

Three new gateways in Saudi Arabia ($95 million)New country Office in Cairo ($55 million)Largest MEA ground facility in UAE ($27 million)

MEA – USD 177m


Continue successful FOCUS strategy

58%

12%

5%

14%

11%

2009 Revenue distribution

TDI TDD DDI DDD ACS / Other

70%

9%

4%5%

12%

2013 Revenue distribution

FOCUS. DHL EXPRESS


75%

7%

3%

2% 13%

Q2 2014 Revenue distribution

BALANCED, “VIRTUAL AIRLINE” BUSINESS MODEL INCREASES FLEXIBILITY

Cost Position

Asset Intensity

Flexibility

Capacity Commitment

1) Commercial Air Linehaul

1)

22%

26%

52%

0 - 90 Days (incl. CAL) 91 - 360 Days Fixed


Selling air cargo space purely helps to offset aviation costs and is not a TDI product sold by the core sales team; DHL Global Forwarding (DGF) is the main customer

AIR CAPACITY SALES (ACS) – 4 DIFFERENT PRODUCT OFFERINGS

1 Block Space Agreement, guaranteed air cargo product.

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

Total Spare Capacity (TSC), average capacity not utilised by Block Space or TDI Core on a planned basis. To be sold by air cargo product

3+4

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

4

Air cargo guaranteed, a set amount of the Total Spare Capacity guaranteed for priority traffic & key customers3

• More than ACS 500,000 bookings per year

• For DGF we improved from no. 8 in 2010 to the no. 3 supplier in 2012

• DGF is the biggest customer from DHL Aviation

• More than ACS 500,000 bookings per year

• For DGF we improved from no. 8 in 2010 to the no. 3 supplier in 2012

• DGF is the biggest customer from DHL Aviation


FORWARDING, FREIGHT



GLOBAL FORWARDING, FREIGHT: VOLUMES IMPROVING, YIELDS STILL WEAK

1)Twenty Foot Equivalent Unit

Air Freight ´000s Tons

Ocean Freight ‘000s TEU1)

709749

Q2 13 Q2 14

987 1.008

Q2 13 Q2 14

Air Freight and Ocean Freight volume growth improving, reflecting stronger demand in Asia and new customer wins

GP/unit decline yoy in Air Freight and Ocean Freight

NFE expenditure in line with project plan in Q2

Business Highlights


Revenue down yoy due to FX effects. Organic revenue growth of +2.2% reflecting volume growth in Air Freight and Ocean Freight

Gross profit decline reflecting FX effects and competitive markets

EBIT improved sequentially but still down yoy due to weaker GP margin

Operating cash flow down in line with lower EBIT, also reflecting some increase in working capital

Capex significantly up yoy mainly related to NFE implementation

GLOBAL FORWARDING, FREIGHT – DIVISIONAL RESULTS Q2 2014

EUR m Q2 2013 Q2 2014 Chg.

Revenue 3,709 3,638 -1.9%

Gross Profit 939 885 -5.8%

EBIT 127 100 -21.3%

Operating Cash Flow 94 45 -52.1%

Capex 23 60 >100%


MAXIMIZED PROFITABILITY: GP ON PRODUCT LEVEL REFLECTS OUR SIZE ADVANTAGE AND PRODUCT PORTFOLIO

• Performance benchmarking on product level is impacted by differences in accounting – key DGF competitors allocate value added services to AFR or OFR

• DGF has chosen to account for VAS separately under category called ‘Others’. This allows to measure true performance on product level

• When relevant VAS (customs, handling, cartage) are allocated to AFR & OFR to improve comparability, DGF’s GP margin is in line with peers

• GP margin in AFR benefits from DGF’s large scale, while OFR reflects its share of uncontrolled volumes

Gross Profit margin 2013(in %, Air Freight)

Gross Profit margin 2013(in %, Ocean Freight)

1) Including value-added services; Note: GP margin absolute level not fully comparable due to different revenue recognition principles across competitorsSource: Official company publications

20.7%21.9%25.2%20.1%

25.4%

DG

F

DG

Fco

mpa

rabl

e1)

17.7%20.8%19.6%19.3%

21.7%

DG

F

DG

Fco

mpa

rabl

e1)


SUPPLY CHAIN



SUPPLY CHAIN – HEALTHY BUSINESS WINS

1) Annualized revenue gains

Normalization of new signings after lower Q1

Continued selective approach to new business signings

Automotive and Life Sciences & Healthcare showing strongest revenue growth yoy

Revenue growth excluding FX effects strongest in emerging markets at 8.2%

Business HighlightsNew signings, EUR m1)

Revenue by Sector Q2 2014

330350 335

Q2 2012 Q2 2013 Q2 2014

PAGE 51

10%

Technology10%

Life Sciences &Healthcare

20%Consumer

19%

Retail25%

Others

5%Williams Lea9%Energy

2%

Automotive


Revenue up by 2.3% impeded by FX and disposal effects. Organic revenue up by 5.7% mostly driven by good growth in the Americas and APMEA

EBIT up after negative one-off of EUR -21m in 2013 reflecting ramp-up of contribution from new contracts

Operating cash flow improvement reflects EBIT growth and good working capital management.

Capex in-line with last year reflecting investments in new customer projects

SUPPLY CHAIN – DIVISIONAL RESULTS Q2 2014

EUR m Q2 2013 Q2 2014 Chg.

Revenue 3,537 3,618 +2.3%

EBIT1) 79 109 +38.0%

Operating Cash Flow -31 -6 +80.6%

Capex 61 62 +1.6%

1) 2013 One-offs EUR: -21m SC disposal losses & restructuring



DHL SUPPLY CHAIN: STRONG STRATEGIC POSITIONING

PAGE 53

2009 2013

12%

12.014.2

9%7% 7%

CAGR

+12%

+17%

+4%

Market leader in contract logistics in Asia and Latin America

Revenue: EUR bn

Asia Pacific

Latin America, Middle East, Africa

1) DHL projection based on forecasts from IHS Global Insight and Transport Intelligence; suppliers with global footprint

Outsourced contract logistics: market shares

~13%87%

3 largest providers

~13%

2,2%2,4%

8,2%

OtherLargest Providers1)

K+NCEVADHL

DHL is by far market leader in a stronglyfragmented market

DHL Supply Chain profiting from strong EM footprint

FOCUS. CC/OTHER COSTS

0,1%

0,2%

0,3%

0,4%

0,5%

0,6%

0,7%

0,8%

2009 2010 2011 2012 2013 2020

TAR

GE

T

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%


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INVESTOR RELATIONS CONTACTS

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

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

Daniel Stengel• +49 228 182 63202• 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]


Documents

Deutsche Post · PDF fileEnsure successful implementation of NFE ... DEUTSCHE POST DHL AT A GLANCE 1) Average FTEs FY 2013 The postal service for Germany Post - eCommerce - Parcel