Deutsche Post DHL Group results Q Simply delivering. Larry Rosen, CFO. Bonn, 8 May 2012

Transcription

1 Deutsche Post DHL Group results 2012 Simply delivering Larry Rosen, CFO Bonn, 8 May 2012

2 2012 Highlights (1/2) Revenue and EBIT growth across all divisions Solid operating performance continued in 2012 Ongoing very positive volume trends in Parcel and TDI Delivering on our strategic ambitions Strong EBIT in MAIL 13% EBIT growth at DHL Full year guidance confirmed Deutsche Post DHL Page 2

3 2012 Highlights (2/2) Strategic and Financial Performance Trends intact Key growth trends DHL emerging markets sales growth yoy change Parcel Germany volumes +13.6% Express TDI volumes +9.6% Forwarding, Freight revenue +2.4% Supply Chain revenue +6.0% revenue, yoy change Asia Pacific +12.1% Latin America +11.9% Africa / Middle East +15.1% DHL, EBIT margin by Division Express Forwarding, Freight Supply Chain 4.2% 7.8% 7.6% 1.7% 2.4% 2.0% 1.8% 2.4% 2.7% Deutsche Post DHL Page 3

4 Group P&L 2012 Continued strong performance EUR m Chg. Revenue increase of +4.3% driven by all divisions with DHL Express showing strongest growth. Organic growth of +3.5% Revenue 12,807 13, % EBIT % t/o Mail % t/o DHL % Financial result NA Taxes % Consolidated net profit 1) % EPS (in EUR) % EBIT improved strongly in the DHL divisions while MAIL also grew supported by solid business performance and one additional working day Financial result was impacted by final Postbank accounting effect of EUR 186m compared to EUR -56m last year Tax rate at 27% Consolidated net profit and EPS improved strongly due to underlying earnings growth as well as the deconsolidation effect of Postbank 1) Attributable to Deutsche Post AG shareholders Deutsche Post DHL Page 4

5 Free Cash Flow 2012 Free cash flow decline due to working capital development EUR m ) ) Cash from operating activities before changes in Working Capital Changes in Working Capital Net cash used in operating activities after changes in Working Capital Modest cash flow improvement more than offset by sizeable working capital increase Operating cash flow burdened by annual Civil Servants Pension payment of EUR 530m Working capital build-up also reflects discontinuation of a factoring program as well as growth in DHL FFO/Debt at 30.9% (year-end 2011: 32.3%) Net Capex Net M&A 0 2 Net Interest Free Cash Flow ) Included restructuring cash out of EUR -60m in 2011 and EUR 93m in 2012 Deutsche Post DHL Page 5

6 Net Debt (-)/Liquidity (+) Net financial liquidity reduced as usual in due to a sharp increase in working capital (a.o. related to civil servant pension payment of EUR 530m) EUR mn 637 2) ) t/o -398m civil servants 2) -139m Factoring Dec 31, 2011 Operating Cash Flow Changes in Net cash All other March 31, 2012 (before changes in Working capex effects working capital) Capital 1) Adjusted for various Postbank effects; 2) Full cash out for civil servant pension payment of EUR -530m, thereof EUR -132m in OCF before changes in working capital and EUR -398m in changes in working capital Deutsche Post DHL Page 6

7 Highlights Mail 2012 Strong parcel growth accelerates even further into the year Mail communication volumes m units -1.1% 2,047 1,842 1,861 2,059 2,024 Milestones 11 Q2 11 Q3 11 Q Parcel Germany continues to grow strongly Mail Communication volume decline in line with expectations (-2.7% per working day) Global Mail: optimization of business portfolio begins to pay off Wage increase effective only as of April 1, 2012 Parcel volumes m units % Q2 11 Q3 11 Q Deutsche Post DHL Page 7

8 Strategic Focus: Increased Service for Parcel Customers Continued strong growth in Parcel business supported by best-in-class service offering New services include upfront -/ text-notification ahead of delivery Customers can choose to postpone delivery to a more suitable time, to change the delivery address or can reroute shipments to any Packstation of choice Additional Packstations have been deployed smaller ones have been replaced Example: 22m long & 374 shelf XXL- Packstation installed at central train station in Frankfurt a.m. to cater to growth requirements Deutsche Post DHL Page 8

9 Mail Divisional Results 2012 Strong parcel growth supports top and bottom line EUR m Chg. Revenue growth reflects parcel performance and one additional working day in 2012 Revenue 3,520 3, % EBIT % Operating Cash Flow % Capex % yoy working days in Germany Q2 Q3 Q EBIT improved due to strong parcel business and continued cost control Operating cash flow contains annual cash contribution to civil servants pension fund (EUR 530m) and working capital effect from discontinuation of a factoring program (EUR 139m) Capex below last year s level due to timing effects Deutsche Post DHL Page 9

10 Highlights Express 2012 TDI volumes outgrowing the market Time Definite International (TDI) Revenues per day 1) in EUR m +9.3% 26,8 29,7 28,2 30,8 29,3 Milestones Strong TDI volume growth with increased weight per shipment New non-stop around the world flight linking Asia, U.S. and EU USD 47m investments at Cincinnati Hub to meet the growing demands of international shipping customers in the Americas Region New Asia hub opening in Q Q2 11 Q3 11 Time Definite International (TDI) Shipments per day 000s +9.6% Q Q2 11 Q3 11 Q ) Currency translation impacts are eliminated. Hence, 2011 and 2012 data are aggregated with the same currency rate Deutsche Post DHL Page 10

11 DHL Express Boosts Intercontinental Services With Second Round-the-World 777 Linking HKG LAX LEJ HKG World leading service performance Leipzig (LEJ) Hong Kong (HKG) Los Angeles (LAX) Cincinnati (CVG) Bahrain (BAH) Additional capacity to meet growing customer demand on key intercontinental trade lanes Enhanced service offering on Western U.S. Europe route: - Improved latest pick-up times US West Coast - EU - More next-day services offered Deutsche Post DHL Page 11

12 Express Divisional Results 2012 Robust business development across all regions EUR m Chg. Revenues increased primarily due to strong TDI volume performance driven by positive development in all regions Revenue 2,750 3, % EBIT % Operating Cash Flow NA Capex % EBIT development slightly below revenue due to incremental aviation network investment Operating cash flow below last year due to working capital development and timing of restructuring cash-out (EUR 88m) Higher Capex due to air network investments Deutsche Post DHL Page 12

13 Highlights Global Forwarding, Freight 2012 Profitability focus pays off in a volatile market Air freight 000s Tons -8.7% 1,087 1,106 1,080 1, Milestones 11 Q2 11 Q3 11 Q Further margin improvement achieved through efficiency improvements and focused market development Capex is growing due to investments into new IT environment Air and Ocean Gross Profit up +4.6% and +10.0% respectively. Mix optimization continued. Ocean freight 000s TEU 1) +3.7% Q2 11 Q3 11 Q ) Twenty Foot Equivalent Unit Deutsche Post DHL Page 13

14 Global Forwarding, Freight Divisional Results 2012 EBIT conversion improved despite volatile market environment EUR m Chg. Revenue 3,599 3, % EBIT % Operating Cash Flow % Capex % Modest revenue growth reflects the mixed volume development EBIT increase driven by gross profit growth and 100bp improvement in GP/EBIT conversion reflecting increased efficiency Cash flow remains on the strong level of last year Capex increase reflects ongoing investments in IT environment Deutsche Post DHL Page 14

15 Highlights Supply Chain 2012 Solid business growth and further improvement in EBIT margin Revenue by sector 2012 Others Milestones Revenue growth especially driven by Automotive and Life Sciences & Healthcare sectors Strongest regional growth again in Asia Pacific (+21%) New business of around EUR 190m in annualized revenue won in 2012 ( 2011: EUR 320m) driven by the Retail, Consumer and Technology sectors Williams Lea Energy Automotive Technology 8% 2% 12% 9% 7% Life Sciences & Health Care 18% Retail 25% 19% Consumer Deutsche Post DHL Page 15

16 Supply Chain Divisional Results 2012 Operational improvements contribute to EBIT increase EUR m Chg. Revenue 3,216 3, % EBIT % Operating Cash Flow % Capex % Contracts won Annualized revenue Revenue above last year due to increased volumes and new contracts. Organic revenue growth at 5.7% The EBIT rose primarily due to the higher revenues, further contract mix optimization and continued cost efficiencies from operational and overhead leverage Operating cash flow comparison influenced by timing effects on pension cash-outs Capex reflects investments in new contracts New gains Deutsche Post DHL Page 16

17 Full-year 2012 Guidance Confirmed 2012 EBIT guidance: Mail stabilization and double-digit growth in DHL Confirmed Group EUR bn Mail DHL divisions EUR bn ~ EUR 1.9bn Capex of ~ EUR 1.8bn Tax rate expected at around 27% Net profit 1) to improve in line with operating business Corp. Center/ Other ~ EUR -0.4bn 1) Even excluding positive Postbank effects of EUR186m in 2012 Deutsche Post DHL Page 17

18 Wrap Up Strategy execution drives continued strong EBIT performance in all divisions Mail stabilization reflects shift towards stronger Parcel contribution and good cost management DHL businesses keep improving top- and bottom-line performance, supported by their strong global footprint Deutsche Post DHL Page 18

19 Deutsche Post DHL Group results 2012 Simply delivering Larry Rosen, CFO Bonn, 8 May 2012