Annual General Meeting Deutsche Post DHL. Address by Dr. Frank Appel, CEO Frankfurt am Main, May 27, Written manuscript, check against delivery

Transcription

1 Annual General Meeting Deutsche Post DHL Address by Dr. Frank Appel, CEO Frankfurt am Main, May 27, 2014 Written manuscript, check against delivery

2 Dr. Frank Appel CEO Deutsche Post DHL Shareholders, Shareholder Representatives, Ladies and Gentlemen! Good morning! I would like to cordially welcome you to this year's Annual General Meeting. I am happy you decided to make the trip to the Jahrhunderthalle in Frankfurt or to join our live webcast. Allow me to start with the most important news of all: 2013 was a very good year for Deutsche Post DHL. We were successful and hit each of our targets. And I would like to add that these were very ambitious. We had no tailwind last year. The economy expanded modestly at 3 percent. The eurozone generated no growth at all, and Germany hardly did much better. We also had a number of negative exchange-rate effects to deal with. Sales and earnings generated outside the eurozone decline when converted into the strong euro. Nonetheless, we achieved our ambitious goals. A key to our success is our unique range of services. With us, every customer can find just what they are looking for. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 2

3 DIE Post für Deutschland We are THE postal service for Germany and intend to remain so. We serve about 41 million households and 3.7 million business customers across the country. Two million people visit one of our retail outlets every business day. Deutsche Post is Europe's largest postal service. We are the market leader in the German mail and parcel market. We deliver more than 64 million letters each business day. Added to this are more than 3.4 million parcels and small packages. We are part of everyday life. When modern life changes, we change with it. Written communication is increasingly handled by . With our E-Post service, we intend to make your secure. E-Post is a service with a future. It is growing well, despite skepticism here and there. We have successfully established E-Post as a new platform. Four years after being introduced, the E-Post brand has made a name for itself in the marketplace. As planned, we generated revenues of about EUR 100 million with the E-Postbrief last year. For 2014, we are determined to increase revenues to about EUR 200 million. What makes E-Post so successful? Products like E-PostScan. With it, you can conveniently and securely read the content of your mailbox anywhere. And you can do so with your cell phone as well as with your tablet or PC. That makes life a little bit easier. And it underscores an important point: Products must be both simple and secure. This is becoming increasingly important. We got into E-Post at an early stage and are continuously expanding our digital range of products and services. Digitalization is an exciting area for a postal company. Another highly interesting business area is human mobility. The opening of the long-distance bus market in Germany has created new growth opportunities. Our service: the ADAC Postbus. It stands for low-priced, safe and, above all, comfortable travel. Today, we have 60 buses that serve 30 cities on nine lines. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 3

4 One in eight Germans has chosen to take a long-distance bus instead of the train since January Our pilot operations are running smoothly. Our customers love the yellow buses and are satisfied with the service. End of 2014/ beginning of 2015, we will take a closer look at the success of the new concept and decide on how to proceed. Simplifying our customers' lives No business is currently generating momentum like the parcel business. With more than 3.4 million parcels a day, we are Germany's largest parcel service by far. Day in and day out, people place orders, unpack parcels and occasionally return items. Online retailing is generating boundless growth. Without parcel service providers like us, this would not work. A customer's decision to buy an item online depends on the first and last mile. We all feel the same way: Products must be easy to order and easy to receive. And this is where we come in. We deliver the parcel just as the recipient would like to have it. We make the delivery on the scheduled day to the desired location, and we let the customer know we are coming. We make deliveries to a Packstation or to a DHL Paketkasten. Every parcel is brought to the right place at the right time. Deutsche Post DHL has the most flexible parcel network in Germany by far. Let's consider the Packstation: It is a huge success. In Germany, we have Packstations at 2,650 locations that have a daily capacity of 250,000 parcels. And these capacities are used 24 hours a day, seven days a week. Our latest creation is the DHL Paketkasten, an idea we have been testing since The Paketkasten transfers the principle of a mailbox to parcels. The Paketkasten is the greatest invention since the mailbox. Demand is greater than anyone ever expected. We began to offer the DHL Paketkasten across Germany on May 12, 2014, to rent or purchase. The monthly rent is at EUR 1.99, the purchase price starts at EUR 99. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 4

5 But we do not limit ourselves to making deliveries. We are also an online retailer ourselves. At Allyouneed.com, you can conveniently order food online. We make the delivery when you are home. Orders placed up to midnight will be delivered the following evening. Via DHL Kurier, customers can choose to receive their deliveries between 6 p.m. and 8 p.m. or between 8 p.m. and 10 p.m. So, we are committed simplifying the lives of our customers. And not only that we intend to be accessible. Soon, you will be able to drop off your parcels at more than 50,000 points in Germany. This includes 20,000 new DHL Paketshops. We make it easy to send and receive parcels. Parcel volume is constantly rising. We transported more than one billion parcels last year alone. This was more than seven percent above the previous year's level. And we are expanding our parcel network in response. You will find a current example of our investments not far from here. In Obertshausen, a town in nearby Offenbach County, we are building Germany's largest parcel center. We will be able to sort 50,000 parcels an hour there. We are the driving force of online retailing and are proud of our achievements. The topic is a central part of our plans for the future a point I will come back to later. THE logistics company for the world We have a second major goal. We want to become the logistics company for the world. And here, we are making good progress as well. DHL is Number 1 in logistics. We are the leader in international express shipments (DHL Express). We are experts in air and ocean freight (DHL Global Forwarding). We are specialists in road and rail transport (DHL Freight). We are the market leader in contract logistics (DHL Supply Chain). And our network spans all continents. We have 480,000 employees around the world, making us one of the largest employers. In 2013, the brand value of DHL totaled a highly respectable US$ 13.7 billion. This represents an increase of 53 percent over the previous year's total. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 5

6 Investment in growth markets Logistics is a growth industry. Our world is becoming increasingly connected. Global product streams depend on good logistics. We are determined to ensure this and invested in all regions last year. And we did so in all DHL divisions. Allow me to point out a few examples: United States: In the summer of 2013, we expanded our express shipments hub in Cincinnati. Together with Hong Kong and Leipzig, Cincinnati forms the backbone of our global network for urgent documents and shipments. We have invested about US$ 105 million in Cincinnati. Why did we expand our base there? We see opportunities for further growth among many small and mid-sized customers in the United States. Latin America: In February 2014, I personally opened a new warehouse for DHL Supply Chain in Mexico. The warehouse has a capacity of 23,000 square meters and will be operated by about 250 employees. In March 2014, we put a new logistics terminal for DHL Global Forwarding in El Salvador into operation. China: In January 2014, we launched the first temperature-controlled rail service between China and Europe. This shipping route between Chengdu, China, and Lodz, Poland, is unique. Special DHL containers record their interior temperatures. This facilitates a controlled transport for temperature-sensitive products. As a result, a reliable and reasonably priced shipping solution could be found for harsh winters and hot summers. Why is this so important? Asia is among the world's top three most connected regions. By 2015, more than 40 percent of global trade will have something to do with Asia in one way or another. Germany: Over the next five years, we will invest EUR 150 million in new buildings and technology at our Leipzig base. We can process about 150,000 shipments per hour. The construction work for the expansion began last week. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 6

7 The first shipments are to be handled in the new 40,000-square-meter sorting hall in mid-october. Since the Leipzig hub opened in 2008, we have invested more than EUR 500 million and created 4,000 jobs there. Middle East/ North Africa: We also further expanded our presence in the Middle East last year. At the moment, we are building a new logistics center in Dubai covering 17,000 square meters. This amounts to an area of nearly three soccer fields. The facility will open in the third quarter of 2014 and for us, this represents another milestone for DHL in the region. DHL has been doing business in the Middle East for more than 30 years, making us a pioneer in this part of the world. In some countries, our colleagues can be faced with working conditions. When gasoline ran low in Egypt during the period of political unrest there, our courier drivers did not give up. After work, many stood for hours at filling stations to get fuel for the next day. They were all prepared to go the extra mile. The objective: to deliver all shipments on time the next day. Such can-do spirit makes our company successful, and it makes me proud. We have great employees who give their best every day. In our business, you must have good employees and good processes. You cannot have exceptional quality without both. Clear Group-wide foundation We intend to remain the postal service for Germany and become the logistics company for the world. We have a Group-wide compass. As some of you will remember: In 2009, we announced our Strategy Ever since, it has served as the basis for our activities around the world and in all parts of our company. It reflects our values and our customer promise. We want to make our customers, employees and investors more successful. In the process, we always show respect without compromising on results. Our mission: We want to simplify our customer's lives. And: We want to help make our world a better place. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 7

8 To do so, we have set three goals. We intend to be the provider of choice for our customers. We intend to be the employer of choice. We intend to be the investment of choice. What did we achieve last year? Our goal: The provider of choice We want to be the provider of choice for our customers. Having satisfied and loyal customers is the only way to ensure the long-range success of our company. In the German postal and parcel business, we earned top scores last year. More than 95 percent of customers are satisfied with our work. One reason is our exceptional delivery quality. Ninety-four percent of letters arrive at their destination the next day. In the future, we also intend to deliver parcels as quickly as letters. This will require a state-of-the-art network and new technologies. This is exactly where we are investing our money. Our customers' satisfaction with DHL also continues to climb. Our teams will continue to receive quality awards around the world. Just one current example: The Stevie Awards were recently presented in the United States. These widely known awards recognize outstanding sales and customer-service work. DHL teams from a number of different countries took a total of more than 30 awards home with them. Another example from our forwarding business: DHL Global Forwarding was named the best provider of logistics services last year in China. The award was presented by Autoliv China, one of the world's biggest automotive suppliers. Our goal: The employer of choice You have to work hard to create satisfied customers. A key is satisfied and motivated employees. We do many things to measure the motivation of our workforce and to raise it further. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 8

9 Our employees' opinions are important to us: Each year, we survey all 480,000 employees around the world. We want to find out how satisfied they are with their jobs and their supervisors. Each employee directly evaluates his or her supervisor. The approach is called "Active Leadership." The evaluation goes into calculating the supervisor's bonus. In other words: Supervisors who receive poor ratings from their employees will feel it in their wallets. The surveys are filled out and evaluated anonymously. We also track a number of other key metrics in addition to "Active Leadership." The good news: In 2013 all grades were better than or at least as good as those from the previous year. This demonstrates to us that our employees feel at home. We are taking the right approach. We are investing in our people: At the end of 2011, DHL Express introduced a standard-setting program around the world. We are training all employees and turning them into international specialists. The training concludes with a certificate for each employee. It looks just like a real passport. This makes one point: I have the knowledge I need to be an expert in international express shipments. Around 100,000 employees have gone through the training program since the project began. There are training courses for every country and function. They extend from courier driver to top manager. The special feature: The program can do much more than expand an individual's base of knowledge. It also helps strengthen team spirit and employees' identification with the company. I attended the program, too, and saw for myself just what sort of difference this training and the passport can make for people. Satisfied customers and well-trained employees are the essence of success. They ensure we can deliver solid financial results and become an investment of choice. Last year, we made tremendous strides in our work to reach this goal. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 9

10 Guo Weicong, one of our courier drivers in China, was honored just recently as one of the 10 best throughout the country. He has not made one single mistake over the past three years. Our goal: The investment of choice The year of 2013 was a very successful one for Deutsche Post DHL. We generated revenues of more than EUR 55 billion and continued to boost earnings in Sales did slip by 0.8 percent to EUR 55.1 billion. But this decline resulted primarily from negative exchange-rate effects. We also made a conscious decision to divest portions of our business in several countries. Adjusted for these factors, revenues rose by nearly 3 percent. DHL's performance was also quite good in DHL Express generated strong growth. DHL Supply Chain also measurably boosted revenues. Customers are increasingly calling on us to handle warehousing and transport jobs for them. This gives customers more freedom to focus on their core business. The news gets even better when we look at operating earnings. In 2013, we generated a Group EBIT of EUR 2.86 billion. In this regard, I am talking about earnings before interest and taxes. This represents an increase of 7.4 percent compared with the previous year. Last year, we hit our earnings forecast once again. The total fell within our target range of between EUR 2.75 billion and 3.0 billion. The financial position of Deutsche Post DHL is solid. We improved consolidated net profit from about EUR 1.6 billion in the previous year to nearly EUR 2.1 billion in This equates with an increase of one-third. These positive results reflect the overall success achieved across all parts of the company. The performance of the Parcel and Express International was particularly strong. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 10

11 In the first quarter of 2014, Deutsche Post DHL continued to perform well. During the period, we continued to boost revenues and earnings. At nearly EUR 13.6 billion, revenues produced in the first three months of the year rose by more than 1 percent above their total for the same period last year. Organic growth totaled more than 5 percent. Operating earnings rose by more than 2 percent to EUR 726 million. We continue to produce profitable growth. Deutsche Post shares These successes strengthened investors' confidence in our company a source of pride for us. Our share outperformed the DAX for the third year in a row. Furthermore, the share was added to the EURO STOXX 50 on September 23, The share closed out the year of 2013 at EUR Ladies and Gentlemen, this represented a gain of 59.6 percent over the previous year's closing price. In 2013, the Deutsche Post share was the second-best performer in both the DAX, Germany's blue chip index, and in the EURO STOXX 50. Analysts regularly put the share on their buy lists. The company's public image has improved tremendously as well. Today, more than 80 percent of all media reports about Deutsche Post DHL are positive. As you see, our Strategy 2015 is paying off. And our customers, our employees and you, our shareholders, benefit from that. There is also one other area that is a part of our strategy and is contributing to our success. I am talking about corporate responsibility a key factor for many investors and customers. Corporate responsibility: a part of our identity We view corporate responsibility as a comprehensive concept. To us, commercial success and responsible action do not represent a contradiction in terms. Rather, they go hand in hand. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 11

12 To make it easier to plan success, we must rapidly spot opportunities and risks in the marketplace. We are members of society and set high standards for the contribution we make. We carefully observe the changes taking place in the marketplace and society. This enables us to design our actions in a commercial and sustainable manner. We call this "Responsible Business Practice". As providers of logistics services, we place a high priority on environmental protection. We understand that we are both a part of the problem and a part of the solution. In 2008, we set a unique environmental protection goal. We became the first major logistics company to set a measurable environmental goal. By 2020, we intend to improve our CO 2 efficiency and that of our subcontractors by 30 percent compared with the base year of We are making good progress toward reaching this goal as well: Last year, we improved our CO 2 efficiency by 18 percent compared with Electromobility played a major role here. We have set industry standards with our "StreetScooter." This electric delivery vehicle was developed specifically to meet our needs. As part of our work with it, we have turned Bonn into a proving ground for CO 2 free deliveries. But we still have a long way to go before we can hit our environmental target. We are already more than halfway there. And we intend to achieve more. We plan to not just improve our own CO 2 efficiency. We also offer "green logistics solutions" designed to help our customers reach their own environmental goals. We call this "Shared Value." It involves added value for our customers, our company and the environment. Customers expect corporate responsibility. Rating agencies and independent institutions regularly judge our services on the basis of ethical, social and environmental standards. We conduct our work on a high level and are members of many widely known sustainability indexes. We are determined to be a good corporate citizen everywhere in the world. We work on behalf of education, provide assistance after natural disasters and help local communities. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 12

13 As part of an annual campaign week, we give employees an opportunity to perform charitable work around the world. Last year, more than 100,000 employees took advantage of this opportunity. I would now like to tell you something more about one particular subject: disaster relief. This is an area that is closely linked to logistics. And it is an area that is very important to me. As a partner to the United Nations, we offer our expertise in disaster relief. We do this in two ways. Our logistics experts travel to airports and conduct multi-day workshops that provide disaster-relief training to employees at these facilities. We call the program "Get Airports Ready for Disaster." If disaster strikes, the concept is designed to get relief supplies to the area as quickly as possible and to send this assistance to organizations in the affected area. At the same time, our DHL Disaster Response Teams provide immediate assistance on site as well. We have a network of 400 employees who have been specially trained for this job. When the need for them arises, we immediately release them from their normal responsibilities. They are ready to move out within a maximum of 72 hours. Last year, we fought forest fires in Chile and, above all, provided valuable local assistance following Typhoon Haiyan on the Philippines. You will find much more about this topic in our "Corporate Responsibility Report 2013" that we have provided to you. How is Deutsche Post DHL positioned today? Last year, Deutsche Post DHL performed well thanks to its clear strategy. We achieved all of our objectives. We have made tremendous progress in our work to become the provider, employer and investment of choice. We take corporate responsibility seriously. It plays a major role in our business success. We never could have achieved this without the dedication of all our employees around the world. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 13

14 A total of 480,000 people who commit themselves day in and day out to serving our customers. My colleagues on the Board of Management and I would like to thank them for their passion and dedication.. I would also like to express my thanks to Professor Dr. Wulf von Schimmelmann and the entire Supervisory Board, who have always backed our strategy. Ladies and Gentlemen, none of this would be possible without the trust you have put in us. Just a few years ago, few people believed in the success story of Deutsche Post DHL. But you did. Many of you stuck with us for many years, years that were occasionally difficult. I would like to thank you for this support. Investments in Deutsche Post DHL pay off. We would like to share our success with you once again by paying a dividend. The Board of Management and the Supervisory Board are proposing to you a dividend of EUR 0.80 per share for financial year This is an increase of EUR 0.10 from last year. It is the third dividend increase since we announced our Strategy 2015 in In terms of consolidated net profit, this represents a distribution ratio of 49 percent. It lies within the corridor of 40 percent to 60 percent of consolidated net profit set by our finance strategy. In absolute figures, the dividend totals EUR 968 million. I would be very happy if you were to approve this recommendation. Ambitious targets are also set for 2014 and 2015 You know us: We will never rest on our laurels and will continue to improve. For the current year, we expect to generate consolidated EBIT of between EUR 2.9 billion and EUR 3.1 billion. This would represent another boost in earnings. The division Post - ecommerce - Parcel is expected to generate about EUR 1.2 billion of this total. Up to now, you have known this division as MAIL. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 14

15 Why the change? The growth fields of parcel and e-commerce will become more and more important as time passes. The MAIL division was responsible for handling letters, parcels and the logistics related to e-commerce. Bundling the three activities in one division was and is the right approach to take. The division's former name, however, no longer fitted. For this reason, we recently named the MAIL division Post - ecommerce - Parcel. The new name reflects the change of mission. But is more than just a new name. It is a new direction for the future. I will talk in greater detail about this in a moment. We expect DHL to generate EBIT of between EUR 2.1 billion and EUR 2.3 billion during the current financial year. The costs of Corporate Center/Other should total less than EUR 400 million in We also have ambitious goals for We expect consolidated EBIT to total between EUR 3.35 billion and EUR 3.55 billion. In January 2014, we have integrated some non-german parcel business into Post - ecommerce - Parcel. In 2015, we expect this division to produce EBIT of at least EUR 1.1 billion. DHL is expected to contribute between EUR 2.6 billion and EUR 2.8 billion. The costs for Corporate Center/Other should total about EUR 350 million in Strategy 2020: Ready for the next step We have ambitious plans for the future and have already begun to look beyond We are ready to take the next step. On April 2, 2014, we announced our new "Strategy 2020." It is called "Focus.Connect.Grow." Some of you might have asked why we announced a new strategy at such an early stage. Our current strategy includes the goals we set for the period that runs until the end of It will remain in effect for 18 more months and we will continue to energetically work on achieving these goals. We are now talking about a time horizon that runs through 2020 because we want to give our employees a direction for the future. Our teams want to know how the company intends to move strategically forward. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 15

16 Customers also appreciate advance information about our future direction. You, our shareholders, have a similar interest. Our new Strategy 2020 is based on our past achievements and defines the next step we plan to take. In a changing marketplace, we intend to exploit new opportunities to produce more organic growth. Our mission for 2020: We define logistics. What drives us? We aim to define the standards of our industry. When people think of logistics, we want them to think Deutsche Post DHL. When a customer wants to send products or documents, we want to be the first choice. If a young person wants to work in logistics, he or she should think of us first. If an investor wants to make a good investment, we want to be the most attractive choice. These are ambitious goals. But we see real potential for reaching them. The foundations are in place. We are the logistics service provider with the largest global presence. We are innovative and offer the superior quality in many areas. Our customers regularly give us top grades. Our goal is: We intend to deliver the best quality and the best service. We will commit ourselves to achieving this goal and measure ourselves against it. Our plan through 2020 The name of our Strategy 2020 says it all. "Focus.Connect.Grow." brings together all three priorities of the future. "Focus" means: Continuing to concentrate on the areas that have made us successful. Our goal is to further expand our margins. "Connect" means: Connecting across the organization to become the quality and service leader. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 16

17 "Grow" means: Expanding in global growth regions as a way of achieving sustainable above-market growth. This is our plan, our overview. What does this involve specifically? Logistics is our core business "Focus" provides a clear direction for the future. The decision is: Logistics is and will remain our core business. Logistics is an interesting industry capable of producing growth and high returns. We expect attractive annual growth in all of our logistics divisions. Of course, we will also remain committed to our mail business in Germany. It is still a key pillar of our Group. A "family" of strong divisions We will continue to operate stand-alone divisions under the DHL brand name. Moving forward, Deutsche Post DHL will continue to think of itself as a "family" of highperforming divisions. Every division will provide first-class services in its respective markets. Our divisions are bound by their shared understanding of the market and its customers. This strategic message is an important signal to our employees and our management. Our goal: Quality excellence The second major pillar of our Strategy 2020 is "Connect." Here, we are talking primarily about optimizing internal processes. Nonetheless, these steps are tremendously important. If we want to provide the best quality and service to our customers, we have to improve our internal networking. We are committed to investing in the know-how and comprehensive service understanding of our employees. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 17

18 Let me talk about just one key element out of a bundle of measures. We are planning to introduce a program for comprehensive Group-wide training and certification. We intend to set new standards by doing so. At the beginning of my speech, I talked about the success of DHL Express's global training program. We are now applying the fundamental principle of this initiative to our entire Group. As part of this effort, we will provide training to 1,900 top executives and more than 9,000 managers. Added to this total are more than 56,000 supervisors and more than 320,000 employees. By 2020, we plan to have trained more than 80 percent of employees and to turn them into the best of our industry. It is an important investment in the future. Designed with customers' needs in mind. Accelerating organic growth The third segment of our strategy is "Grow." We are talking here about sustainable, above-market growth. Deutsche Post DHL has a unique network. As a result, we are well prepared for the future. We do not need to carry out any more major acquisitions. Small ones, however, might be considered to address specific needs. Where do we intend to grow? The answer is: in those places that are growing! We will find them in global emerging markets like Asia and in business areas like logistics related to e-commerce. We intend to become the leading provider and remain open to further organic opportunities. Goal for 2020: 30 percent revenue share in emerging markets Specifically, this means one thing: By 2020, 30 percent of our revenues should be generated by these dynamic emerging countries. At the moment, our business activities in these countries generate 22 percent of revenues. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 18

19 Goal for 2020: Global No. 1 in logistics related to e-commerce We want to apply our successful German parcel strategy in other countries. Our parcel network in Germany has what it takes to become a strong force in the markets of other countries. As I stated earlier: This new focus is reflected in the new name. It is no longer called MAIL but goes by Post - ecommerce - Parcel. We intend to remain the Number 1 in Germany and expand our position. We also intend to become the global Number 1 in this business by We will export the expertise we have gained in Germany on a step-by-step basis to other markets. We are thinking of Europe, the Americas and Asia. Doing so, we can also partly draw on existing structures within our current network. For this reason, we transferred some activities to Post - ecommerce - Parcel at the beginning of the year. This affected the Benelux countries, the Czech Republic, Poland and India. Our financial targets for 2020 We have set ambitious, but attainable financial targets: We intend to increase our Group EBIT by an average of more than 8 percent annually through In the Post - ecommerce - Parcel division, we expect to generate annual gains in operating earnings that will average about 3 percent. DHL's divisions should produce an annual average increase in EBIT growth of 10 percent. The future belongs to logistics. Ladies and Gentlemen, Your company, Deutsche Post DHL, is a great business. Today's society cannot function without it. We are the company that guarantees secure information and reliable product transport. Logistics connects people and improves their lives. In this way, it measurably contributes to the prosperity of people throughout the world. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 19

20 What does logistics need so it can accomplish all of this? Logistics needs free trade and a good infrastructure. Trade barriers must be removed and infrastructure upgraded. This will help logistics and all of us in the process. Trade barriers could be eliminated by a transatlantic trade and investment agreement between Europe and the United States. We are following the debate with great interest and are happy to add our voice to it. I am certain that we can draw on our position to help move the discussion forward in an objective manner. Ladies and Gentlemen, we want to be the reference for logistics. So we will work hard to maintain the strongest presence around the world, the best quality and the most loyal customers. We will bundle all our efforts to get there. The Board of Management at Deutsche Post DHL looks back proudly on last year and is extremely confident about the future. We thank you for the trust you have placed in us. We can achieve much by working together. We will continue to work hard on implementing our Strategy With our new strategy, we have also set our course for Logistics remains exciting. Deutsche Post DHL will remain exciting, too. Thank you very much. Annual General Meeting 2014, Dr. Frank Appel, 27 May 2014 Page 20