DHL Asia Pacific and China Strategy. Frank Appel Shanghai, 11 July 2012

Transcription

1 DHL Asia Pacific and China Strategy Frank Appel Shanghai, 11 July 2012

2 Asia: Most dynamic global growth region Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 2

3 Asia Pacific: An important growth engine for global GDP Asia Pacific: A major driver of the world Population: GDP: ~ 56% (3,871 mn) ~ 30% (EUR trillion) Export: ~ 33% (EUR 4.84 trillion) Dom. demand: ~ 30% (EUR trillion) Asia Pacific: Strong and stable growth rates Asia Pacific: Fastest global growth region GDP growth (real) in % (yoy) Share of absolute GDP growth ( ) 10 Forecast 9.8% APAC % Americas 48.8% 0 Europe 27.7% Other F 2013F 2014F 2015F Source: IHS Global Insight (Deutschland) GmbH, 2012 Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 3

4 in the centre of gravity for global trade Example: Air Cargo & Containerized Ocean Freight Intra<->Asia Trade 32% of total trade (2015) CAGR 7.4% *) Latin America<->Asia 5% of total trade (2015) CAGR 11.2% *) Middle East-Africa<->Asia 9% of total trade (2015) CAGR 7.6% *) More than 40% of global trade expected to originate from three triangles of trade around Asia by 2015 Source: Seabury Cargo 2012; Air Cargo & Containerized Ocean Freight in Metric Tons *) CAGR ; for information: Europe<->Asia: 13% of total trade (2015), CAGR 6.4%; North America<->Asia: 13% of total trade (2015); CAGR 6.4% Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 4

5 DHL Asia: A strong contributor to the Group Revenue )2) : EUR 38.9bn 19% Asia Pacific Others Revenue ) : EUR 11.4bn 30% Asia Pacific Revenue ) : EUR 10.9bn 26% Asia Pacific Revenue ) : EUR 13.1bn Asia Pacific 9% Others Others Others Clear market leadership in Asian TDI No. 1 in air freight, No. 2 in ocean freight Market leader in contract logistics in Asia 1) External revenue = revenue generated by the divisions from non-group third parties; 2) incl. DHL Freight Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 5

6 We are pioneers in Asia, continuously expanding operations 1980 DHL entered China through an agency agreement with Sinotrans 1991 DHL Danzas Air & Ocean started from a representative office 2000 Central Asia Hub (Hong Kong) begins operations 2003 DHL acquires stake in Sinotrans 2004 DHL acquires 68% stake in Blue Dart (India) 2009 DHL opens domestic transportation hub (supply chain) in Shanghai NOT EXHAUSTIVE Today New openings North Asia Hub, Shanghai (Express) DHL established presence in China through Int l Express DHL expanded into global forwarding and contract logistics segments DHL established presence in dom. transportation services Future Investments DHL established JV with Sinotrans 1998 Danzas Z.F. Freight Agency Co. established as a JV 2002 DHL acquires stake in Air Hong Kong 2005 DHL inaugurates Oceania Hub at Sydney Airport 2007 DHL first int l provider of dom. airfreight services in China MegaHub, Hong Kong (Supply Chain) Source: DHL, DHL Business Strategy in China (ICFAI Center for Management Research, 2004) Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 6

7 Key growth levers in Asia Improving connectivity, facilitating trade growth North Asia Hub for EXPRESS in Shanghai Next day delivered everywhere in EU Early bird Overnight Europe from Pearl River Delta DHL is the most reliable and fastest Express services provider in Asia GoWest Trans Pacific Flights Following growth westward Intra-Asia andtrans-pacific routes Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 7

8 Continuously expanding in Asia New projects in Asia in ) Mumbai Distribution center for Life Sciences & Healthcare Jun Round-the-world-flight, linking Hong Kong, Los Angeles and Leipzig Mar Jakarta New multi-user warehouse Jun Korea LCL global forwarding hub Aug (planned) EXEMPLARY DHL Door-to-More direct distribution solution from Asia to Europe (Global Forwarding) Jun Hong Kong New International Service Center May 2012 Hong Kong Direct flights from Hong Kong to Chengdu and Ho Chi Minh City June 2012 New openings in China July 2012 Shanghai North Asia Hub Hong Kong Supply Chain MegaHub Shenzhen 2) DHL Integrated Logistics Center December 2012 Shanghai Airfreight bonded facility expansion 1) Multitude of other investment projects ongoing, for example upgrade and enhance capacity & capability of AFR/OFR/RFR/multimodal products/facilities in Mid-West China, furthermore upcoming launch of multi-national LCL gateway in Korea; 2) Shenzhen Qianhaiwan Free Trade Port Area Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 8

9 China: Global hub and dynamic domestic market Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 9

10 China will remain the engine of the global economy until 2025 Real GDP Growth Origin of Growth (Indexed 2010 = 100%) Origin of Absolute GDP Growth 300 China (EUR bn) 9, , APAC w/o China World North America Europe 3,664 4,408 4,519 5,103 (China) Europe RoW North America APAC Source: Copyright IHS Global Insight (Deutschland) GmbH, 2012 Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 10

11 The China of tomorrow China in million buildings Half of the world s buildings constructed until ,000 skyscrapers The equivalent to constructing up to 10 New York cities 5 billion square meters of road will be paved Today it s only half of it and even less than in Germany China s urban population increase by 350 m More than the population of today s United States 221 cities with more than one million people Europe has 35 today Source: McKinsey Global Institute Preparing for China s urban billion, 2009 Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 11

12 Logistics has a key role to play in China s development As China continues on a path of globalization, logistics has a key role to play: Help China integrate stronger with the global economy by facilitating international and domestic trade flows Help accelerate the pace of innovation with intelligent logistics solutions Help international players to be successful in China and support Chinese heroes in their quest for internationalization Support shift to environmentally conscious business practices with green logistics solutions Offer efficient logistics solutions as key enabler of growth Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 12

13 DHL Express in China: First foreign express company to enter China in 1980 Key strategic growth levers (DHL Sinotrans) >30 years of experience in China Covering >400 cities in China >110,000 customers Appr. 6,000 employees >30% market share in time definite international High Potential Regions: Southwest (Chengdu & Chongqing), central cities (Wuhan & Zhengzhou, Northeast Region (Dalian, Qingdao, Jilin, Shenyang) Emerging industries: Consumer electronics, Automotive, Healthcare, Engineering & Manufacturing, Fashion Specific Initiatives: Growth initiatives targeted at specific industry sub-segments at city or provincial level, e.g. Wedding Gowns from Suzhou Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 13

14 DHL Global Forwarding in China: No. 1 Freight Forwarder in the market Key strategic growth levers First foreign logistics company to enter China domestic airfreight market >35,000 customers Around 3,000 employees Appr. 400,000 sqm of warehouse space Continuous sector development: Maintain strength in Hi-Tech and further expand into Fashion & Luxury, Automotive, Life Sciences, Energy, Retail and Engineering & Manufacturing Expand customer portfolio: From global multi-nationals to fast-growing enterprises and local small- and medium-sized enterprises Deliver operational excellence: Enhance exception management and complaint handling through one-touch initiative Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 14

15 DHL Supply Chain in China: Integrated logistics solutions for key industries Key strategic growth levers >25 years experience with domestic transportation and distribution in China >4,000 employees Around 200 customers >600,000 sqm of warehouse and cross docking space 1) Sector-focused business development Leverage on global solutions with adaptation to local requirements Focus on operational excellence and quality Continuous investment in IT applications and warehouse footprint Talent & people development Consultative selling and key account management 1) including Hong Kong and Taiwan Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 15

16 Recent investment: New North Asia Hub in Shanghai Opening ceremony: 12 July 2012 Regional Express Hubs in Asia Pacific Central Asia Hub Hongkong Delhi Beijing Bangalore Bangkok Singapore Hubs Regional Hubs Commercial Air Hubs Seoul North Asia Hub Shanghai Taipei Manila Sydney Auckland North Asia Hub Shanghai at Pudong International (PVG) First-class Express hub Part of multi-hub strategy in Asia Pacific Investment of US$ 175m New capacity, greater flexibility and reliability for guaranteed time-definite delivery Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 16

17 Outlook for Logistics Service Providers in China There is enormous potential for logistics services in China. But some key challenges remain: 1 2 Economy still growing faster than China s logistics infrastructure Reliable policy framework for logistics 3 Market fragmentation 4 Stringent regulations for licensing, transport, customs 5 Strong demand for talent Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 17

18 Our DHL strategy in a nutshell: Continuously increasing our strength in China and beyond The importance of China and its growth potential is huge (>25% of global GDP growth between 2010 and 2015). DHL is a pioneer in China and leading logistics provider in the market (e.g. 40% market share in international express). We continue expanding our presence in China by investing in infrastructure, service excellence and sector management. The new North Asia Hub in Express is an important milestone, strengthening our leading position in the region substantially. Frank Appel Shanghai 11 July 2012 Deutsche Post DHL Page 18

19 DHL Asia Pacific and China Strategy Frank Appel Shanghai, 11 July 2012