Deutsche Post DHL Investor Relations. August 2014

Transcription

1 Deutsche Post DHL Investor Relations August 2014

2 INTRODUCTORY HIGHLIGHTS Strong EBIT growth in Q2, despite continuing FX headwinds 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 Q Group guidance confirmed Further actions under evaluation to strengthen Forwarding and Supply Chain divisions Ensure successful implementation of NFE Streamline Supply Chain organization and exit unattractive businesses/contracts 2015 guidance modified, introduction of 2016 guidance INVESTOR RELATIONS AUGUST 2014 PAGE 2

3 OUR NEXT HORIZON: ACCELERATING ORGANIC GROWTH Inorganic expansion Unlocking our potential Accelerating organic expansion Create the base INVESTOR RELATIONS AUGUST 2014 PAGE 3

4 STRUCTURAL MARKET GROWTH TRENDS Our markets are affected by four major actionable global trends Continued global trade growth but shift in pattern Acceleration of ecommerce and more demand for last-mile solutions Accelerating impact of process technology and automation Increasing demands for responsible business Growth in long-haul trade and transport slowing down Importance of emerging markets still increasing More fine distribution and direct shipping, also in B2B Multi-channel delivery for B2C 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 INVESTOR RELATIONS AUGUST 2014 PAGE 4

5 LOGISTICS MARKETS OFFER ATTRACTIVE GROWTH Plenty of room to grow within logistics market 1) Market share DPDHL in total logistics market 2) 4% Share of market with significant DPDHL presence 3) 19% Attractive growth in key addressable market segments within logistics Estimated Market CAGR , in EUR +5-7% +8% +5-6% +4-5% +5-6% +2-3% Parcel Germany Parcel Domestic International International Express Air Freight Forwarding Ocean Freight Forwarding Contract Logistics 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 INVESTOR RELATIONS AUGUST 2014 PAGE 5

6 STRATEGY 2020: FOCUS. CONNECT. GROW. Strategy 2020 FOCUS. CONNECT. GROW. We focus on what has made us successful We connect across the organization We expand in new segments 1. Logistics as our core 2. Committed to the needs of our stakeholders & our planet 3. A family of divisions to further expand margins. 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 leadership and service excellence. 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. INVESTOR RELATIONS AUGUST 2014 PAGE 6

7 PeP: STRATEGY FOR SUBDIVISION ecommerce & Parcel The key element of future profit growth DHL Parcel DHL ecommerce Parcel Germany Continue success story Expand and innovate production capacity Invest in new service features e.g., private parcelbox, allyouneed.com Parcel Europe Leverage & invest in businesses transferred from DHL (BNL, PL, CZ) Re-orient and broaden service offering towards B2C Gradually expand European coverage Americas Build on existing businesses Global Mail US Blue Dart India Asia 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 INVESTOR RELATIONS AUGUST 2014 PAGE 7

8 PeP: SUCCESSFUL PARCEL MODEL IN GERMANY Consumer centric innovation leader on the first and last mile in Germany EXAMPLES DHL Paketshops Private parcelbox Packstation Grocery delivery Shopping platforms Evening delivery/ Flexible delivery INVESTOR RELATIONS AUGUST 2014 PAGE 8

9 EXPRESS: KEEP EXECUTING OUR SUCCESSFUL FOCUS STRATEGY Motivated People Great Service Quality Loyal Customers Profitable Network QCC 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 INVESTOR RELATIONS AUGUST 2014 PAGE 9

10 EXPRESS GLOBAL TDI MARKET SHARES Updated market study confirms market share gains Europe [EUR 6.0bn] Americas [EUR 6.8bn ] Asia Pacific [EUR 6.8bn] MEA [EUR 0.5bn] 16% 4% +/-0% 33% 47% 12% 10% 12% 25% 41% +1% 4% 24% 10% 19% 23% 51% 42% 12% +1% +1% 9% 5% Global [EUR 20.1bn] +x% Change vs 2012 MI study 5% 13% 33% DHL TNT UPS FedEx Others 22% +1% 26% Source: MI study 2014, annual reports ; like-for-like definition of regions vs 2012 MI data AM: 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 INVESTOR RELATIONS AUGUST 2014 PAGE 10

11 NFE: TRANSFORMATION PROCESS FOR GLOBAL FORWARDING NFE System Rollout 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 timeintensive transition and training than initially expected Organisational Alignment 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 NFE is the right solution, we want to maximize the opportunity INVESTOR RELATIONS AUGUST 2014 PAGE 11

12 SUPPLY CHAIN: TAKING PERFORMANCE TO THE NEXT LEVEL DHL Supply Chain established as a solid EBIT contributor to the group but performance can be further enhanced to strengthen delivery towards 2020 targets 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 INVESTOR RELATIONS AUGUST 2014 PAGE 12

13 GUIDANCE SUMMARY Shift in composition of 2014 guidance guidance modified - new 2016 targets introduced EBIT FY 2014 FY 2015 FY 2016 PeP DHL CC/Other Group ~ EUR 1.3bn (from ~ EUR 1.2bn) EUR bn (from EUR bn) Better than EUR -400m EUR bn Better than 2014 Better than 2014 > EUR 1.3bn EUR bn ~ EUR -350m ~ EUR -350m Significantly better than 2014 EUR bn 2014 Free Cash Flow to at least cover 2013 dividend Tax rate around 16% (from ~19%) Gross Capex of around EUR 1.9bn INVESTOR RELATIONS AUGUST 2014 PAGE 13

14 GUIDANCE SUMMARY 2020 guidance and assumptions remain unchanged EBIT FY base PeP ~3% CAGR EUR 1.286bn DHL ~10% CAGR EUR 1.997bn CC/Other < 0.5% of Group revenue EUR -422m Group >8% CAGR EUR 2.861bn Free cash flow generation to remain priority No ambition for major M&A Finance policy including payout ratio range to remain unchanged INVESTOR RELATIONS AUGUST 2014 PAGE 14

15 CONFIRMATION OF FINANCE POLICY Target / maintain rating BBB+ Deployment of Free Cash Flow 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 INVESTOR RELATIONS AUGUST 2014 PAGE 15

16 STRATEGY 2020: ENTERING THE EXECUTION PHASE Delivering good EBIT growth in H despite FX and weak macro enviroment Additional measures currently under evaluation to strengthen our footing Near term targets adjusted as our focus shifts towards Strategy 2020 DEFINING THE LOGISTICS INDUSTRY Leverage e-commerce & EM growth Promote sustainable, organic growth Continue EBIT margin expansion Increase free cash flow INVESTOR RELATIONS AUGUST 2014 PAGE 16

17 Appendix INVESTOR RELATIONS AUGUST 2014 PAGE 17

18 DEUTSCHE POST DHL AT A GLANCE 2013 key figures Group: Sales: EUR 55,085m; EBIT: EUR 2,861m; Employees 1) : 435,520 Post - ecommerce - Parcel International and Domestic Express Global Air, Ocean and Road Freight Global Supply Chain Solutions Sales: EUR 14,452m Sales: EUR 12,712m Sales: EUR 14,838m Sales: EUR 14,277m EBIT: EUR 1,226m EBIT: EUR 1,133m EBIT: EUR 483m EBIT: EUR 441m Empl. 1) : 149,692 Empl. 1) : 84,986 Empl. 1) : 44,174 Empl. 1) : 143,761 The postal service for Germany The logistics company for the world Corporate Center / Other: Sales: EUR 1,251m; EBIT: EUR -422m 1) Average FTEs FY 2013 INVESTOR RELATIONS AUGUST 2014 PAGE 18

19 GROUP P&L Q EUR m Q Q Chg. Revenue 13,605 13, % EBIT % t/o PeP 1) % t/o DHL 2) % Financial result 3) >-100% Taxes % Consolidated net profit 4) % EPS (in EUR) % 1) 2013 One-offs: EUR 50m postage stamp provision utilization 2) 2013 One-offs: EUR -21m SC disposal losses & restructuring 3) Positive one-time effect of EUR 42m in Q ) Attributable to Deutsche Post AG shareholders INVESTOR RELATIONS AUGUST 2014 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 Q one-offs, EBIT growth of +11% despite significant FX headwinds PeP EBIT flat excl. EUR 50m one-off in Q 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 Q 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 PAGE 19

20 FREE CASH FLOW Q FCF generation in line with good previous year performance EUR m Q Q Cash from operating activities before changes in Working Capital Changes in Working Capital Net cash from operating activities after changes in Working Capital Net Capex 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%) Net M&A Net Interest Free Cash Flow INVESTOR RELATIONS AUGUST 2014 PAGE 20

21 NET DEBT (-)/LIQUIDITY (+) Usual increase in net debt in H1 - annual dividend payment in Q Net debt (Dec 31, 2013) OCF before change in W/C Changes in W/C Net capex Net dividend Other effects Net debt (Jun 30, 2014) INVESTOR RELATIONS AUGUST 2014 PAGE 21

22 MOVEMENTS IN NET PENSION PROVISION in EURbn Plan assets Total Defined Benefit Obligation EUR 15.4bn Total Defined Benefit Obligation EUR 16.3bn Highlights Net pension provision rose primarily as a result of declining discount rates. Plan assets rose as returns were above calculated interest income Mar. 31, 2013 Jun. 30, 2014 Net Pension Provision Mar 31, 2014 June 30, 2014 Germany 3.50% 3.00% UK 4.25% 4.25% Other 3.27% 2.00% Total 3.70% 3.37% INVESTOR RELATIONS AUGUST 2014 PAGE 22

23 STABLE CAPITAL INTENSITY EXPECTED Gross Capex / Sales ratio - Group & by division 6,0% Gross Capex intensity average 5,0% EXPRESS ~4% 4,0% 3,0% GROUP ~3% 2,0% PeP ~3% 1,0% 0,0% SUPPLY CHAIN FORW. FREIGHT ~2% ~1% EXPRESS GROUP PeP SUPPLY CHAIN DGF INVESTOR RELATIONS AUGUST 2014 PAGE 23

24 2013 DIVIDEND: INCREASE OF 14% Dividend of EUR 0.80 per share EUR % EUR % EUR % EUR % 60% 40% 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% Underlying Payout Ratio 1) 1) Adjusted for Postbank effects as well as non-recurring items INVESTOR RELATIONS AUGUST 2014 PAGE 24

25 OPERATING CASH FLOW DEVELOPMENT Strong EBIT growth converted into even stronger OCF increase Major drivers: EBIT Change in Provisions Change in WC OCF EUR m 3, ,000 1, ,000 Declining cash-outs (utilization), mainly due to restructuring provisions tailing off Some volatility from timing effects and economic cycle, but overall low WC intensity -2, ) ) 1) Adjusted for non-recurring items INVESTOR RELATIONS AUGUST 2014 PAGE 25

26 FREE CASH FLOW DEVELOPMENT Turnaround in FCF generation lays base for further improvement Major drivers: OCF Net Capex Net Cash from M&A FCF EUR m 2, , ,500 1) ) ) Adjusted for non-recurring items INVESTOR RELATIONS AUGUST 2014 PAGE 26

27 PROFITABILITY IMPROVEMENT SEES FURTHER PROGRESS BUT STILL MORE WORK TO BE DONE 2013 shows expected margin acceleration in Express Margin improvement >100bps in 2013 driven by: Increasing core TDI share in product mix 7.1% 7.8% 8.7% 7.8% 1) 8.9% Efficiency gains and scale effects in ground and air Margin stable as cost containment made up for: Weak volume environment 2.8% 2.9% 3.3% 3.3% Increase in NFE costs 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 1) EXPRESS FY2012 margin excl. EUR 113m one-off items from VAT, restructuring provision release and disposal gain in Q ) FY2010 margins excl. non-recurring items (restructuring) 2.1% 2) FY % FY % FY % FY 2013 INVESTOR RELATIONS AUGUST 2014 PAGE 27

28 EMERGING MARKETS CONTINUE TO GROW STRONGER Macro trends continue to support high growth in emerging markets Growth differential expected to continue 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 GDP, real CAGR e 2.0% Mature USA UK Japan Western Europe 5.4% Emerging China India Brazil South East Asia Source: IHS Global Insight INVESTOR RELATIONS AUGUST 2014 PAGE 28

29 STRUCTURAL TREND EMERGING MARKETS INTACT AS DEVELOPING MARKETS POSTING ABOVE-AVERAGE GROWTH Emerging Markets drive growth across DHL Divisions Express Forwarding Supply Chain Revenue 1) : EUR bn CAGR % 12.3 Revenue 1) : EUR bn CAGR % 10.6 Revenue 1) : EUR bn CAGR % % 24% +9% +14% 16% 32% 14% 26% +14% +9% 17% 28% 7% 7% +12% +17% 12% 9% Global TDI leadership with key strengths in growth markets Global No. 1 in Air freight, No. 2 in Ocean freight Market leader in contract logistics in Asia and Latin America Latin America, Middle East, Africa Asia Pacific 1) Based on external 3rd party revenue, region according to customer invoice INVESTOR RELATIONS AUGUST 2014 PAGE 29

30 OUR AMBITION FOR THE EMERGING MARKETS Group revenue footprint 78% 70% 22% 30% Today 2013 Target 2020 target Building on our leading market positions in growth regions, 30% emerging market targets is AMBITIOUS BUT ACHIEVABLE Mature Markets Emerging Markets INVESTOR RELATIONS AUGUST 2014 PAGE 30

31 Focus. Connect. Grow. POST, E-COMMERCE & PARCEL INVESTOR RELATIONS AUGUST 2014 PAGE 31

32 PeP PEP SOLID VOLUME DEVELOPMENT Mail Communication volumes (in m pieces) Q2 13 Q2 14 Dialogue Marketing volumes (in m pieces) Q2 13 Q2 14 Parcel Germany volumes (in m pieces) Business Highlights 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 Q2 13 Q2 14 INVESTOR RELATIONS AUGUST 2014 PAGE 32

33 PeP DIVISIONAL RESULTS Q EUR m Q Q Chg. Revenue 3,642 3,642 +/-0.0% EBIT 1) % Operating Cash Flow % Capex % 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 1) 2013 One-offs: EUR 50m postage stamp provision utilization INVESTOR RELATIONS AUGUST 2014 PAGE 33

34 E-POST ON TRACK TO BREAK EVEN IN 2015 New digital services Regular additions to the E-POST portfolio for private and for business customers e.g. E-POST KontoPilot All payment solutions in one place E-POSTSCAN Receive letter mail digitally via smartphone, tablet, PC E-POSTBUSINESS BOX Plug-and-play device for E-Postbrief business customers 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 communication 1) New customers 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 E-POST is a success 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 ) 203 StgB (German Criminal Code): Personal data privacy protected by law INVESTOR RELATIONS AUGUST

35 Post - ecommerce Parcel: NEW REVENUE REPORTING STRUCTURE Old Structure MAIL Division Mail Communication Dialogue Marketing Press Services Retail Outlets Pension Services Global Mail Parcel Germany Asset shifts Domestic Parcel in Czech Republic, Netherlands, Belgium, Poland and India Letters Post Parcels ecommerce - Parcel Post All letters including import /export from and to Germany. Also includes new services like E-Post and ADAC Postbus 2013 Revenue, restated: EUR 9,984m ecommerce - Parcel New Structure Domestic and cross-border parcels and parcel operations in selective markets 2013 Revenue, restated: EUR 5,307m INVESTOR RELATIONS AUGUST 2014 PAGE 35

36 MAIL: PROPOSED LETTER PRICING REGULATION NEW 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 Agency 1) 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, ) Directly impacted Mail revenues of EUR 3.3bn 3) 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 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 INVESTOR RELATIONS AUGUST 2014 PAGE 36

37 OVERALL UNCHANGED VOLUME TRENDS IN GERMANY Volume development in bn items Mail Communication 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 Parcel Germany in bn items Dialogue Marketing volumes continue to be under pressure Dialogue Marketing Parcel Germany continues to show strong development. Market growth rates should come down slightly (expected CAGR ~6%) Mail Germany INVESTOR RELATIONS AUGUST 2014 PAGE 37

38 WORKING DAYS GERMANY Q Q H Q M Q H FY INVESTOR RELATIONS AUGUST 2014 PAGE 38

39 Focus. Connect. Grow. EXPRESS INVESTOR RELATIONS AUGUST 2014 PAGE 39

40 EXPRESS STRONG TDI GROWTH CONTINUED Time Definite International (TDI) Revenues per day in EUR m 35,4 Time Definite International (TDI) Shipments per day 000s 647 INVESTOR RELATIONS AUGUST ,5 Q2 13 Q Q2 13 Q2 14 Business Highlights 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 PAGE 40

41 EXPRESS DIVISIONAL RESULTS Q EUR m Q Q Chg. Revenue 3,015 3, % EBIT % Operating Cash Flow % Capex % 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 with EUR 104m release of restructuring provision and EUR -104m aviation fleet impairment Strong operating cash flow increase in line with trend in operating performance INVESTOR RELATIONS AUGUST 2014 PAGE 41

42 EXPRESS: NETWORK EXPANSION ENABLING GROWTH UK GBP 156m Mexico USD 14m East Midlands hub ( 90 million) Southern hub, near LHR ( 32 million) New facilities in Manchester, Croydon and Sheffield ( 34 million) Germany EUR 178m Leipzig European hub ( 150 million) Stuttgart air-road depot ( 28 million) Tokyo EUR 67m Largest global gateway opening 2016 Queretaro Conversion of domestic hub to air hub Mexico Total investments of USD 160m expected in MEA USD 177m Three new gateways in Saudi Arabia ($95 million) New country Office in Cairo ($55 million) Largest MEA ground facility in UAE ($27 million) INVESTOR RELATIONS AUGUST 2014 PAGE 42

43 FOCUS. DHL EXPRESS Continue successful FOCUS strategy 2009 Revenue distribution 2013 Revenue distribution Q Revenue distribution 11% 12% 2% 13% 14% 5% 58% 4% 9% 5% 7% 3% 12% 70% 75% TDI TDD DDI DDD ACS / Other INVESTOR RELATIONS AUGUST 2014 PAGE 43

44 BALANCED, VIRTUAL AIRLINE BUSINESS MODEL INCREASES FLEXIBILITY Asset Intensity Capacity Commitment 22% 52% 26% Cost Position Flexibility 1) Commercial Air Linehaul 1) 0-90 Days (incl. CAL) Days Fixed INVESTOR RELATIONS AUGUST 2014 PAGE 44

45 AIR CAPACITY SALES (ACS) 4 DIFFERENT PRODUCT OFFERINGS 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 1 Block Space Agreement, guaranteed air cargo product Express TDI core product, capacity based on average utilization, adjusted on a daily basis Air cargo guaranteed, a set amount of the Total Spare Capacity guaranteed for priority traffic & key customers 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 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 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 INVESTOR RELATIONS AUGUST 2014 PAGE 45

46 Focus. Connect. Grow. FORWARDING, FREIGHT INVESTOR RELATIONS AUGUST 2014 PAGE 46

47 GLOBAL FORWARDING, FREIGHT: VOLUMES IMPROVING, YIELDS STILL WEAK Air Freight 000s Tons Business Highlights Q2 13 Q2 14 Ocean Freight 000s TEU 1) 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 Q Q2 13 Q2 14 1)Twenty Foot Equivalent Unit INVESTOR RELATIONS AUGUST 2014 PAGE 47

48 GLOBAL FORWARDING, FREIGHT DIVISIONAL RESULTS Q EUR m Q Q Chg. Revenue 3,709 3, % Gross Profit % EBIT % Operating Cash Flow % Capex >100% 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 INVESTOR RELATIONS AUGUST 2014 PAGE 48

49 MAXIMIZED PROFITABILITY: GP ON PRODUCT LEVEL REFLECTS OUR SIZE ADVANTAGE AND PRODUCT PORTFOLIO Gross Profit margin 2013 (in %, Air Freight) 25.4% DGF comparable 1) 20.1% DGF 25.2% Gross Profit margin 2013 (in %, Ocean Freight) 21.7% 19.3% DGF comparable 1) DGF 19.6% 21.9% 20.8% 20.7% 17.7% 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 1) Including value-added services; Note: GP margin absolute level not fully comparable due to different revenue recognition principles across competitors Source: Official company publications INVESTOR RELATIONS AUGUST 2014 PAGE 49

50 Focus. Connect. Grow. SUPPLY CHAIN INVESTOR RELATIONS AUGUST 2014 PAGE 50

51 SUPPLY CHAIN HEALTHY BUSINESS WINS New signings, EUR m 1) Business Highlights 1) Annualized revenue gains Q Q Q Revenue by Sector Q Automotive Others Williams Lea 5% Energy 9% 2% 10% Technology 10% Life Sciences & Healthcare INVESTOR RELATIONS AUGUST % 25% 19% Retail Consumer 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% PAGE 51

52 SUPPLY CHAIN DIVISIONAL RESULTS Q EUR m Q Q Chg. Revenue 3,537 3, % EBIT 1) % Operating Cash Flow % Capex % 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 1) 2013 One-offs EUR: -21m SC disposal losses & restructuring INVESTOR RELATIONS AUGUST 2014 PAGE 52

53 DHL SUPPLY CHAIN: STRONG STRATEGIC POSITIONING DHL is by far market leader in a strongly fragmented market DHL Supply Chain profiting from strong EM footprint Outsourced contract logistics: market shares Revenue: EUR bn ~13% CAGR % 87% ~13% 8,2% 2,4% 2,2% 7% 7% +12% +17% 12% 9% Latin America, Middle East, Africa Asia Pacific Largest Providers 1) Other 3 largest providers DHL CEVA K+N Market leader in contract logistics in Asia and Latin America 1) DHL projection based on forecasts from IHS Global Insight and Transport Intelligence; suppliers with global footprint INVESTOR RELATIONS AUGUST 2014 PAGE 53

54 FOCUS. CC/OTHER COSTS CC / Other cost, as % of revenue CC / Other cost structure, ,8% Investments into growth & cross-divisional initiatives Corporate bodies (e.g. CB, SVB) and legal obligations/ foundations 0,7% 0,6% 20% 20% 0,5% 0.5% 0,4% 0,3% 0,2% 0,1% TARGET % Core Corporate Center costs INVESTOR RELATIONS AUGUST 2014 PAGE 54

55 DISCLAIMER THIS PRESENTATION CONTAINS CERTAIN STATEMENTS THAT ARE NEITHER REPORTED RESULTS NOR OTHER HISTORICAL INFORMATION. THESE FORWARD-LOOKING STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN THE FORWARD-LOOKING STATEMENTS. MANY OF THESE RISKS AND UNCERTAINTIES RELATE TO FACTORS THAT ARE BEYOND DEUTSCHE POST AG S ABILITY TO CONTROL OR ESTIMATE PRECISELY, SUCH AS FUTURE MARKET AND ECONOMIC CONDITIONS, THE BEHAVIOR OF OTHER MARKET PARTICIPANTS, THE ABILITY TO SUCCESSFULLY INTEGRATE ACQUIRED BUSINESSES AND ACHIEVE ANTICIPATED SYNERGIES AND THE ACTIONS OF GOVERNMENT REGULATORS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH APPLY ONLY AS OF THE DATE OF THIS PRESENTATION. DEUTSCHE POST 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 TO SUBSCRIBE FOR OR BUY ANY SECURITY, NOR SHALL THERE BE ANY SALE, ISSUANCE OR TRANSFER OF THE SECURITIES REFERRED TO IN THIS PRESENTATION IN ANY JURISDICTION IN CONTRAVENTION OF APPLICABLE LAW. COPIES OF THIS PRESENTATION AND ANY DOCUMENTATION RELATING TO THE OFFER ARE NOT BEING, AND MUST NOT BE, DIRECTLY OR INDIRECTLY, MAILED OR OTHERWISE FORWARDED, DISTRIBUTED OR SENT IN OR INTO OR FROM AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL. THIS DOCUMENT REPRESENTS THE COMPANY S JUDGMENT AS OF DATE OF THIS PRESENTATION. INVESTOR RELATIONS AUGUST 2014 PAGE 55

56 INVESTOR RELATIONS CONTACTS Martin Ziegenbalg, Head of Investor Relations Robert Schneider Sebastian Slania Sarah Bowman Daniel Stengel Christian Rottler INVESTOR RELATIONS AUGUST 2014 PAGE 56