Deutsche Post DHL Group

Transcription

1 Deutsche Post DHL Group Delivering ecommerce Investor Relations RBC 2015 Consumer & Retail Conference, London

2 DEUTSCHE POST DHL GROUP IS THE GLOBAL LEADER OF THE LOGISTICS INDUSTRY #1 Europe s largest postal and parcel provider #1 International express delivery #1 Global air freight volumes 64mn letters and more than 4 mn parcels each workday in GER, and selected international markets Leader with 34% market share, serving >2.5mn customers in 220 countries and territories ~4mn tons of Air freight volume #2 Global ocean freight volumes #2 European road freight volumes #1 Global leader in contract logistics 2.9mn TEUs of Ocean freight volume Revenue of 4.2 bn and presence in more than 50 countries and territories Leader with a market share of 8% well ahead of next biggest competitors: 13.7mn m 2 of warehouse space PAGE 2

3 OUR UNIQUE NETWORK CONFIGURATION IS A STRONG FOUNDATION FOR FUTURE GROWTH Europe International Europe s No.1 parcel company with growing coverage of own end-toend network operations Leading parcel provider in growth markets like India incomparable global network flexibility due to own parcel operations and interlinkage with DHL Express and local postal operators PAGE 3

4 WE TURNED INTO A TECHNOLOGY COMPANY TO REDEFINE PARCEL DELIVERY SORTING DELIVERY LOCKERS Building Europe s largest parcel HUB Having developed our own e-delivery van Having constructed the leading parcel locker solution PAGE 4

5 INDIVIDUALIZING PARCEL DELIVERY ON THE LAST MILE IS THE ULTIMATE DIFFERENTIATOR Parcel lockers Private Parcel boxes Parcel shops Click-to-car Courier and same day delivery Parcel copter PAGE 5

6 Back-up PAGE 6

7 WE HAVE A KEEN INTEREST IN SUPPORTING THE GROWTH OF ECOMMERCE BY ADDRESSING VARIOUS PARTS OF THE SUPPLY CHAIN Cross-border ecommerce Delivery efulfillment efacilitation International B2X shipping Express Deferred commercial Postal International efulfillment solutions Multichannel domestic delivery and return incl. intra-eu Innovative services like Packstation, Private parcel box etc. Domestic efulfillment incl. value added services Marketplaces Marketing services Payment solutions Primarily through partners PAGE 7

8 IN 2010, DHL PARCEL LAUNCHED THE ONLINE MARKET PLACE ALLYOUNEED.COM FOR THE GERMAN MARKET Allyouneed MARKETPLACE At a glance Online marketplace with integrated checkout Additional sales channel for online shops - full range offer for online shoppers Launch Germany in 2010, first international branch in Poland since 2014 Further European expansion with cross border leverage planned Registered Customers Available Products Active Merchants 3 mn 13 mn 3,500 PAGE 8

9 SINCE MAY 2012, ALLYOUNEED IS ACTIVE AS A FULL-RANGE ONLINE SUPERMARKET IN GERMANY Allyouneed Fresh SUPERMARKET At a glance Online supermarket with focus on food and FMCG More than 20,000 products available (thereof 3,000 fresh chilled products) Dedicated delivery options for grocery (time-window, evening delivery) with DHL Kurier Allyouneedfresh.cn for Chinese customers with focus on health care/ baby & kids products Registered Customers Avg items per order Available products 150k ,000 PAGE 9

10 DHL HAS LONG EXPERIENCE IN DEVELOPING AND RUNNING UNATTENDED DELIVERY SOLUTION DHL PACKSTATION PARCEL LOCKER Our Network 24/7 parcel drop-off and pick-up Delivery notification and mobile TAN transmission via SMS 14 years of experience in Hardware, Software and network development DHL owned hardware and software solution More than 7 million frequent users in Germany ~2800 machines with compartments available each day Currently situated in more than 1600 cities nationwide. 90% of the German population are within 10 minutes of a PACKSTATION First machines placed outside Germany in the Netherlands, Italy and Switzerland PAGE 10

11 THE DHL PARCEL BOX FOR SINGLE-FAMILY HOUSES MEETS THE REQUIREMENTS FOR PERSONALIZED DOOR STEP E-COMMERCE Key features DHL Parcel Box Product specifications: Two product lines (classic/modern) Two different sizes; e.g., XL with 166 liter Upgrade options letter box and free standing 37 colors to choose from Opening technologies via / : NFC-Chip Smartphone* Courier handheld Offline access control with patented lock solution Power supply by 4xAAA batteries (last 24 months) Usage of DHL Parcel Box Online Purchase Delivery Reception First Mile Address the shipment to your home address *As of June 2015 DHL courier opens box with handheld and inserts shipment Customer opens box with NFC-Tag or smartphone Place e.g. parcels return into parcel box; DHL courier picks up parcel PAGE 11

12 EXPANDING THE PARCEL BOX SOLUTION TO APARTMENT HOUSES ENABLES DOOR STEP CONVENIENCE FOR A BROADER POPULATION Key features DHL Parcel Box Product specifications: Modular construction 4 compartment sizes Flexible configurable Upgrade option letter compartment Offline access control with patented lock solution Dynamic compartment allocation opens door for customer only if a parcel is deposited for him Opening technologies via / : NFC-Chip Smartphone* Courier handheld *As of June 2015 Usage of modular DHL Parcel Box Similar process and opening solution as for single-user parcel box Receiving as well as sending option (e.g. for returns) for registered users Correct allocation of respective receiver to right compartment done system-wise, thus high security level ensured PAGE 12

13 CLICK-TO-CAR IS A JOINT INNOVATION PROJECT OF AMAZON & DHL Click-to-car Project description Joint project development of Amazon & DHL In-car delivery piloted for May 2015 Piloting partners: Audi/VW Perspectives and outlook Alternative to workplace delivery New, innovative delivery formats possible, e.g. Time window delivery to parking lots Night delivery at home addresses Unmanned car-to-car delivery PAGE 13

14 PROCESS DESCRIPTION OF CLICK-TO-CAR DELIVERY Example Click-to-car workflow Retailer sends license plate number and assumed car position (± 250 m) to DHL DHL locates car through a) GPS function and b) blinking lights via special App DHL opens trunk through special delivery App and delivers parcel Source: DHL, Audi/Volkswagen As soon as trunk is closed, customer receives message through consumer App Customer picks up parcel in trunk PAGE 14

15 THE PARCEL COPTER PROJECT PILOTS UNMANNED DELIVERY UNDER REAL LIFE CONDITIONS Second project phase 2014: Medical transport to German island Delivery service to the North Sea island of Juist surpassing a distance of 12 km Supply of urgent goods such as emergency medications or electronic goods Flight by unmanned parcel copter outside visual range from the mainland to the coast of Juist Unique research project with huge press echo worldwide Proof is shown: Technology works and can provide additional value DHL Parcel as important opinion leader PAGE 15

16 DHL KURIER SETS NEW STANDARDS IN FAST AND CONVENIENT PARCEL DELIVERY Service ++ + Regional Same-day Same-day delivery Either in the evening time slot (18-20 or 20-22) or by day within 90 minutes Additional services feasible (e.g. Multi-Way) Germany-wide Next-day >90% next day delivery Evening time slot (18-20 or 20-22) selectable Delivery pre-advice for a 30-minute time window Target Areas 30 m. potential consignees! Multi-Way Concept Customer References Grocery Pharmacy Fashion & Others Services Convenient Multi-Way process, to avoid packaging waste Age verification e.g., concerning delivery of liquors PAGE 16

17 WE OFFER UNIQUE DELIVERY CHOICES TO OUR PRIVATE CUSTOMERS AND CONSIGNEES Unique delivery options at point-of-order Full transparency on parcel delivery Flexibility with individual delivery options Exclusive reward system for DHL customers Direct delivery to +11,000 DHL Parcelshops (pick-up-stations) Direct delivery to +2,800 DHL Packstations (country-wide locker system) Additional delivery features selectable in check-out process of web shops, e.g., timewindow definition (DHL Courier) Full transparency on delivery process with - estimated delivery day - time window prediction Various formats of information: - notification - DHL Parcel App - Push notification - T&T/DHL Website/ private customer portal Ad-hoc rerouting options for parcels underway, e.g., change - delivery day - delivery time* - delivery address* - to a safe-place at home* Definition of delivery preferences at private customer portal (valid for all parcels received at home) DHL Parcel loyalty program (~ 40% of registered private DHL customers participating) Get rewards, e.g., for using direct delivery options to Packstation Access to unique premium service options, e.g., quicker access to customer service Online shopping process Parcel delivery process Beyond parcel delivery * Scheduled for 2 nd half of 2015 PAGE 17

18 AS A RESULT, GERMANY IS TRAILBLAZER FOR THE EUROPEAN E-COMMERCE AND SERVES AS BENCHMARK FOR FUTURE GROWTH 2012 Parcels per capita DE UK CH DK FR NL AT SE BE CZ PL ES Growth driver Further development of recipient services New goods and product categories, e.g. groceries and furniture 2018 Parcels per capita DE UK CH DK FR NL AT SE 3 BE 3 2 CZ Cross-border orders of PL products, which are not ES 2 1 available locally IT IT Source: DHL Parcel Europe The European e-commerce will be boosted by improved delivery services and a broader product range PAGE 18

19 Deutsche Post DHL Group Investor Relations May 2015 PAGE 19

20 Q HIGHLIGHTS Main operating and financial trends as expected Structural volume trends of dynamic parcel growth and letter decline once more confirmed in PeP with EBIT flat as revenue growth again offset by higher costs Express growth momentum fully intact with volume growth feeding further margin increase to drive another strong EBIT performance and higher cash flow Weak Forwarding performance: new management to review transformation course and focus on operating performance improvement Supply Chain restructuring initiatives now in execution phase Cash Flow performance showing usual seasonal Q1 pattern with civil servant pension payment and reversal of year-end effects 2015/16 guidance confirmed PAGE 20

21 DPDHL GROUP STRATEGIC AGENDA Executing on our short-term agenda Stabilize Forwarding operating performance while reviewing transformation course Execute Supply Chain restructuring measures Negotiate a wage agreement to ensure future competitiveness especially in Parcel Germany Continue investments in successful Express operations to build momentum for our long term strategic and financial goals: Leveraging growth in e-commerce and emerging markets, based on unrivalled, diversified business portfolio Clear roadmap for margin and profit improvement Flexible balance sheet and improving cash generation underpin payout policy PAGE 21

22 MANAGEMENT UPDATE ON DHL GLOBAL FORWARDING Management structure: Frank Appel, interim CEO DHL Global Forwarding, Freight Renato Chiavi, interim CEO DHL Global Forwarding Tobias Meyer, EVP Programs (Transformation) Amadou Diallo, CEO DHL Freight (unchanged) Weak operational performance requires new management to review transformation course Unchanged commitment to transformation and to increase of efficiency of our Forwarding business Reviewing transformation course based on pilot country and organizational alignment analysis First priority: renewed and intensive focus on improving underlying business performance PAGE 22

23 DHL SUPPLY CHAIN HAS 9 INITIATIVES TO DELIVER STRATEGY 2020 Focus Drive standardization and reduce complexity 1 Improvement of underperforming business Connect Create an effective organization globally 4 Efficient and effective functions Grow Shift the portfolio 7 Value added services 2 Operational standardization 5 Consistent and lean organization globally 8 Global sectors and products 3 Commercial standardization 6 Culture and mindset shift 9 Geographical shift to increase efficiency to enable change to address attractive segments PAGE 23

24 PeP: STRUCTURAL REDUCTION IN PERSONNEL FACTOR COSTS DUE TO LAUNCH OF NEW PARCEL DELIVERY UNITS Average wages, in EUR/h Currently ~6,000 employees * 8.50* 8.50* * Legal minimum wage DHL Delivery GmbH Deutsche Post AG Degree of outsourcing 100% 100% 95% 33% 0% <5% Wage costs at Deutsche Post AG significantly above competition Launch of new Delivery GmbHs reduces gap to competition since average wage level at EUR/h instead of EUR/h at DPAG PAGE 24

25 PeP: CONTINUOUSLY OPTIMISING OUR PARCEL SERVICE OFFERING FIRST MILE: Marketplace offer rebranded and going international Allyouneed.com NEW Re-branding of MeinPaket.de Launch in Poland Allyouneedfresh.com LAST MILE: Customer-centric range of delivery options with ~ drop off points Paketshops Packstation Delivery at Home Delivery boxes Parcel box PAGE 25

26 DHL EXPRESS: SUCCESSFUL TDI STRATEGY Global TDI Revenue Market Share Development Key Performance Drivers Market growth 1) +8% +3% +3% 12% 12% 12% 12% 7% 6% 6% 6% 29% 29% 27% 26% 23% 22% 22% 22% 29% +14% 31% +9% 33% +6% 34% Steady increase in TDI market share driven by best-in-class global network and service levels Growth accompanied by continuous strong margin increase; further improvement possible from network, efficiency and scale effects Growth enabled by targeted investments into our network Modernizing European air fleet, upgrading capacity and efficiency Continued investment in hub and ground infrastructure across all geographies DHL UPS FedEx TNT Others 1) Source: MI 2014 Study: AT, DE, DK, ES, FR, IT, NL, RU, TR, UK, BR, CA, CO, MX, US, CN, HK, IN, JP, KR, SG, AE, SA, ZA PAGE 26

27 STRATEGY 2020: TOPLINE GROWTH AND MARGIN IMPROVEMENT Attractive growth in key addressable market segments within logistics GDP growth assumptions +2% +5% Estimated Market CAGR , in EUR Mature Regions Emerging Markets +5-7% +8% +5-6% +2-3% +4-5% +5-6% Parcel Germany Parcel Domestic International International Express Air Freight Forwarding Ocean Freight Forwarding Contract Logistics Main Strategic Drivers Revenue mix shift to parcel and increased exposure to e-commerce structural growth trend Continued focus on TDI with network, efficiency and scale effects Stabilize Forwarding operating performance while reviewing transformation course Standardization, overhead leverage and contract portfolio enhancement All divisions will contribute towards >8% group EBIT CAGR target PAGE 27

28 2014 DIVIDEND INCREASE OF 6% AND UNCHANGED FINANCE POLICY Dividend proposal of EUR 0.85 to the AGM on May 27, 2015 Deployment of Free Cash Flow i.e. dividend payments of EUR 1.030bn to DPDHL shareholders on May 28, 2015 FINANCE POLICY, UNCHANGED Target / maintain rating BBB % % % % ) 50% 60% Underlying Payout Ratio 1) 40% 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 ) Adjusted for Postbank effects as well as non-recurring items 2) Proposal to AGM Share buybacks and/or extraordinary dividends PAGE 28

29 EBIT GUIDANCE CONFIRMED FOR 2015/16/20 EUR bn PeP At least 1.3 above 1.3 ~ 3% CAGR DHL ~ 10% CAGR CC/Other ~ ~ <0.5% of group revenue Group >8% CAGR FY 2015: Free Cash Flow to exceed 2014 dividend Tax rate around 18% Gross Capex of around EUR 2.0bn PAGE 29

30 Divisional Information PAGE 30

31 DEUTSCHE POST DHL AT A GLANCE Group Group revenues 1) : 56.6bn Group EBIT 1) : 2.965bn Approximately 440,000 employees Corporate Divisions Post - ecommerce- Parcel Express Global Forwarding Freight Supply Chain 63% market share in letter mail, 43% market share in German parcel market, selected international parcel activities Sales: EUR 15,686m EBIT: EUR 1,298m Empl. 2) : 164,582 Global Time-Definite- International (TDI) leader with 34% market share Sales: EUR 12,491m EBIT: EUR 1,260m Empl. 2) : 73,009 World s largest Air and 2nd largest Ocean freight forwarder, No2 in European road freight Sales: EUR 14,924m EBIT: EUR 293m Empl. 2) : 44,311 Global market leader, market share of 8% well ahead next biggest competitors Sales: EUR 14,737m EBIT: EUR 465m Empl. 2) : 146,400 Corporate Center / Other: Sales: EUR 1,343m; EBIT: EUR -351m Brands 1) Financial year 2014; 2) Average FTEs FY 2014 PAGE 31

32 POST, E-COMMERCE & PARCEL PAGE 32

33 PeP: GOOD GROWTH ACROSS OUR PARCEL ACTIVITIES Mail Communication revenue Dialogue Marketing revenue Business Highlights m EUR -0.6% 1,738 1,727 Q Parcel Germany volumes m units Q Q % Q Parcel Germany revenue Parcel Europe revenue 1) DHL ecommerce revenue 2) m EUR % +4.8% 273 m EUR m EUR % +25.8% 1,062 Q Q Q Q m EUR 302 Mail Communication revenue decline in line with modest volume decline (-1.7%) Dialogue Marketing also with limited revenue decline as price increases mostly compensate volume decline (-9.8%) Parcel Germany revenue growth outpacing strong volume growth of 11.0% supported by price increases Robust organic growth in international Parcel activities in and outside of Europe, also supported by currency developments Q Q Q Q ) Parcel Europe ex Germany; 2) Parcel outside Europe PAGE 33

34 PeP DIVISIONAL RESULTS Q EUR m Q Q Chg. Management comments Revenue 3,960 4, % Revenue increase reflecting growth across ecommerce - Parcel activities as well as price increases in Post products EBIT % EBIT growth constrained by rise in wages and transportation costs as well as expenses for international expansion of ecommerce - Parcel Operating Cash Flow % OCF increase driven by positive working capital development Capex % Investments mainly directed to parcel infrastructure expansion PAGE 34

35 Post - ecommerce Parcel: NEW REVENUE REPORTING STRUCTURE Before 2014 From 2014 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 Domestic and cross-border parcels and parcel operations in selective markets 2013 Revenue, restated: EUR 5,307m PAGE 35

36 PeP 2020 TARGET: SUPPORTED BY MIX SHIFT TOWARDS PARCEL PeP: Revenue Mix PeP: Market Assumptions 19% % ecommerce & Parcel Market growth assumption (in EUR), , p.a.: +5-7% Germany domestic; +8% international domestic Price regulation: No regulatory price cap 81% 64% Post Mail division excl. Parcel Parcel Germany Post ecommerce - Parcel E-commerce trend to continue to drive mix shift from letter to parcel products Expected average letter volume decline of -2 to -3% p.a. Price regulation: price cap = CPI - 0.2% Stamp price increase 1) : +2.8% in % in % as of Jan 1, 2015 e-post revenues: > 300m in ) Average increase on basket of regulated products, applicable to EUR ~3.3bn directly affected Post revenue PAGE 36

37 PeP: DHL ecommerce IS AN ESTABLISHED PLAYER IN THE US Consolidation and sortation of domestic and international parcels #4 in US B-2-USPS consolidator market (SmartMail product) ecommerce Business Description Domestic distribution capacities: Adding fulfillment services and products in collaboration with DHL Supply Chain Established US presence based on former Global Mail activities Last-mile delivery via USPS Fully integrated into global postal network for international parcel delivery icart product offers fully landed cost calculator for international shipments to customers integrated in product offering since 2013 Comprehensive e-commerce fulfillment solution established Best-in-class supply chain technology combined with proven regional order fulfillment and domestic & international delivery services First dedicated efulfillment warehouse in Columbus,OH launched in March As part of Strategy 2020 we are moving up the e-commerce value chain PAGE 37

38 PeP: BLUE DART PROVIDES BASE FOR DHL ecommerce IN ASIA South Asia s premier express and integrated package distribution company Domestic market leader for B2B and B2C parcels in India Business Description Domestic distribution capacities: Adding fulfillment services and products in collaboration with DHL Supply Chain Fully integrated domestic air & ground network, last mile deliver partly through third parties 52% market share in air express 15% market share in ground express 65 ground hubs and 7 air network stations Roll out of Smart Truck technology to enhance productivity and drive efficiencies First efulfillment facility approaching go-live in Delhi with first global customer Facility built as a model for potential further rollout of e-fulfillment centers in India and other Asian markets Blue Dart will provide front-end and customer interface as well as delivery, DHL Supply Chain will contribute warehousing and 3PL expertise As part of Strategy 2020 we are moving up the e-commerce value chain PAGE 38

39 WORKING DAYS GERMANY Q Q H Q ,8 9M Q ,2 H FY PAGE 39

40 EXPRESS PAGE 40

41 EXPRESS: STRONG TDI GROWTH CONTINUES Time Definite International (TDI) 1) Revenues per day in EUR m Business Highlights 34.0 Q Time Definite International (TDI) Shipments per day 000s 662 Q % +7.1% 35.2 Q Q Strong start into the year with TDI volume growth of +7.1% ( MEA +12.4%, Europe +10.2%, Asia/Pacific +5.4%, Americas + 0.6%) Volume growth outpacing revenue growth due to lower fuel surcharge Strong focus on customers and service quality has driven further market share gains Growth supported by continuous expansion and improvement of our leading global network, including hub investments across all major geographies 1) Currency translation impacts are eliminated. Data aggregated with same currency rate PAGE 41

42 EXPRESS DIVISIONAL RESULTS Q EUR m Q Q Chg. Management comments Revenue 2,879 3, % EBIT % Strong TDI volume growth supported by positive FX effects. Organic revenue growth at 2.3% mainly impacted by significant decrease in fuel surcharge revenue Strong EBIT growth driven by TDI volume growth and network efficiencies, EBIT margin up 60bp yoy to 10.2% Operating Cash Flow % Strong operating cash flow increase in line with trend in EBIT performance Capex % Main investments going towards hub and gateway infrastructure upgrade as well as air fleet modernization and expansion PAGE 42

43 DHL EXPRESS: GLOBAL TDI MARKET SHARES Continued TDI leadership across all regions outside the Americas Americas [EUR 6.8bn ] Europe [EUR 6.0bn] 1% 3% 12% +1% 18% 10% 41% 46% 12% 32% +1% 25% Asia Pacific [EUR 6.8bn] 21% 4% 44% 11% +2% 20% Global [EUR 20.1bn] +x% Change vs 2012 MI study DHL TNT UPS FedEx Others 6% 12% 34% Source: MI study 2014 EU : AT, DE, DK, ES, FR, IT, NL, RU, TR, UK AM : BR, CA, CL, CO, CR, GT, MX, PA, PE, US AP : CN, HK, IN, JP, KR, SG GLOBAL : EU + AM + AP + (AE + SA + ZA) 22% 26% +1% PAGE 43

44 DHL EXPRESS FOCUS ON TDI Continue successful FOCUS strategy DHL Express Core Product 2009 Revenue distribution 2014 Revenue distribution TDI (Time Definite International) The premium segment within Express Industry 11% 14% 5% 12% 58% 2% 12% 3% 8% 75% Time Definite = Dedicated delivery at a scheduled time of day International = Cross-Border Shipment (intra- or between continents) TDI: requires dense and broad international network TDI TDD DDI DDD ACS / Other TDD: Time Definite Domestic Revenue Share = Delivery at scheduled time within one country. DDI: Day Definite International DDD: Day Definite Domestic ACS: Air Capacity Sales (re-sale of spare capacity on dedicated fleet to optimize utilization, not sold by core Express sales teams) PAGE 44

45 DHL EXPRESS: VIRTUAL AIRLINE MODEL & AIR CAPACITY SALES Virtual Airline Approx. 500 airports and 22 major hubs connected through 1. Dedicated air: >250 aircrafts with 17 partner airlines on >600 daily flights 2. Purchased air: >300 commercial airlines with >1.800 daily flights 52% Capacity Commitment 22% 26% 0-90 Days (incl. Purchased Air) Days Fixed BSA CORE TDI CAPA- CITY FLEX ACS GUAR. Air Capacity Sales Block Space Agreement, guaranteed air cargo product. Express TDI core product, capacity based on average utilization, adjusted on a daily basis 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 Air cargo guaranteed, a set amount of the Total Spare Capacity guaranteed for priority traffic & key customers PAGE 45

46 FORWARDING, FREIGHT PAGE 46

47 GLOBAL FORWARDING, FREIGHT: WORKING TOWARDS STABILISATION Air freight 000s Tons Business Highlights 932 Q % 935 Q Air and ocean volume growth slowing, mainly due to EMEA and AP regions GP/unit stable in Air Freight at low levels and Ocean Freight GP/unit decline reflect continued difficult industry environment Ocean freight 000s TEU 1) Weak divisional EBIT performance due to complexity of NFE implementation and associated organizational changes 688 Q % 704 Q New management sets priority on improving business performance with unchanged commitment to transformation based on comprehensive review 1) Twenty Foot Equivalent Unit PAGE 47

48 GLOBAL FORWARDING, FREIGHT DIVISIONAL RESULTS Q EUR m Q Q Chg. Management comments Revenue 3,523 3, % Revenue increase driven by volume growth in ocean freight and FX Gross Profit % Continued difficult market environment with margin pressure in both AFR and OFR EBIT % Further affected by ongoing NFE transformation program and low GP/unit in AFR and OFR Operating Cash Flow % Mainly reflecting EBIT decline and unfavorable working capital development Capex % Low capex reflecting asset light business model PAGE 48

49 SUPPLY CHAIN PAGE 49

50 SUPPLY CHAIN: SOLID PERFORMANCE GIVEN RESTRUCTURING New signings, EUR m 1) Business Highlights Q Q ) Annualized revenue Revenue by sector Q Others 10% 5% Retail Williams Lea Energy 23% 2% Automotive 11% 10% 19% Consumer Technology 20% Sound order intake in Q1 (EUR 260m) especially in Automotive, Consumer and Life Sciences & Healthcare Revenue growth across all verticals, strongest in Automotive, Consumer sectors and Life Sciences & Healthcare Further steps taken in implementing Strategy 2020 as presented at last Capital Markets Tutorial Restructuring charges cover implementation of consistent and lean organizational structure, addressing underperforming business areas as well as productivity measures Life Sciences & Healthcare PAGE 50

51 SUPPLY CHAIN DIVISIONAL RESULTS Q EUR m Q Q Chg. Management comments Revenue 3,506 3, % FX benefits mainly driven by stronger USD and GBP. Organic revenue up 0.8% supported by new business across all regions (UK,US and APAC) but still held back by a deliberate customer loss in North America EBIT % EBIT declining mainly due to restructuring costs as timing effects from real estate transactions Operating Cash Flow n.a. Cash flow down yoy mainly due to timing effects Capex % Higher capex reflecting phasing of new contract investments PAGE 51

52 SUPPLY CHAIN: TAKING PERFORMANCE TO THE NEXT LEVEL DHL Supply Chain is a successful member of DPDHL family of divisions Strong and increasing returns based on resilient, asset-light business model ROCE, incl. Goodwill 12% 13% 14% 15% Warehousing 45% 18% 10% Value Added Services Williams Lea % Transportation Supply Chain Strategy 2020 set to deliver further performance improvement EBIT margin 1.8% 2.7% 2.9% 3.1% 3,2% New 2020 margin target: 4-5% 2020 For more information DPDHL Capital Markets Tutorial Workshop London, November 13, ntations/capital_markets_day.html PAGE 52

53 Appendix PAGE 53

54 Q1 REFLECTS TRANSFORMATION & RESTRUCTURING FOCUS Flat Group EBIT with divisional performance showing the expected mixed picture REVENUE EBIT Q Q Change Q Q Change PeP 3,960 4, % % Express 2,879 3, % % Forwarding, Freight 3,523 3, % % Supply Chain 3,506 3, % % Group 13,569 14, % % PAGE 54

55 GROUP P&L Q EUR m Q Q Chg. Management comments Revenue 13,569 14, % EBIT % t/o PeP % t/o DHL % Financial result % Revenue development supported by currency effects. Organic growth of 2.1% with growth in all four Divisions / industries. Impact also from lower energy prices Group EBIT about flat as strong Express growth is offset by transformation and restructuring related costs in Forwarding and Supply Chain Static operating profit as revenue growth driven by ecommerce - Parcel activities and price increases is countered by factor cost inflation Continued strong performance across all major metrics in Express. Declines in Supply Chain and Forwarding, Freight EBIT mainly reflect planned restructuring and transformation initiatives Improvement driven by benefits from lower interest rate environment on interest expense for bonds and provisions as well as FX effects Taxes % Tax rate of 17.5% in line with ~18% full-year guidance Cons. net profit 1) % Net profit and EPS about flat, in line with stable operating profit development EPS (in EUR) % Strong increase in net profit attributable to non-controlling interests 1) Attributable to Deutsche Post AG shareholders PAGE 55

56 FREE CASH FLOW Q Seasonal factors drive usual Free Cash Outflow in Q1 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 Q1 cash generation as every year burdened by payment of fullyear contribution for civil servant pension scheme (EUR 530m) Tight management of Group working capital helped to minimize flow-back of typical year-end cash effects Net Capex Net M&A Free Cash Flow decline due to increased capex spend reflecting continued investments in our growth markets as well as timing effects Net Interest Net interest line benefitted from one-off effect of EUR 76m related to monetization of interest rate swaps Free Cash Flow FFO/Debt at 24.9% (year-end 2014: 27.7%) PAGE 56

57 NET DEBT (-)/LIQUIDITY (+) Seasonality drives net debt increase as usual in Q1 Annual contribution to civil servant pension of EUR 530m (o.w. 130m in EBIT/OCF and 400m in W/C) in EUR m , ,077 Net debt (Dec 31, 2014) OCF before change in W/C Changes in W/C Net capex Net interest Other effects Net debt (Mar 31, 2015) PAGE 57

58 IMPROVING CASH FLOW GENERATION Sustained increase in Operating Cash Flow Provides funding for investment in future growth, in particular in Parcel and Express While simultaneously driving improved Free Cash Flow generation 2,989 3, CAGR: OCF: >10% OCF:1,927 2,371 2,244 2) 1345 FCF: >20% in EURm 1551 Net capex: >10% Use of OCF: Net Capex Other 1) FCF 1) includes net M&A and net interest 2) Adjusted for non-recurring items PAGE 58

59 REMINDER ON PENSIONS: DEFINED BENEFIT OBLIGATIONS (DBO) DBO pensions in Germany No regulatory funding requirement Pensions paid partially from plan assets and partially from current OCF Impact of declining discount rates Balance sheet: net pension provision up 1.5bn in Q due to another step-down in Euro discount rate P&L: slight increase in staff costs expected in 2015 (mainly due to higher current service costs), mostly offset by small decline in finance costs Cash flow: cash outflow not directly affected as actual pension payments and employer contributions to plan assets not affected by fluctuations in applied discount rate levels Total DBO Plan assets Net Pension Provision 18,099 10,961 11,849 7,138 8,635 Dec. 31, ,484 Mar. 31, 2015 in EUR m 2014 Q Average Discount Rate (quarter-end) 2.62% 2.04% EUR Discount Rate (quarter-end) 2.25% 1.50% Lower discount rates increase balance sheet liability but have no direct impact on cash generation PAGE 59

60 STABLE CAPITAL INTENSITY EXPECTED Gross Capex / Sales ratio - Group & by division 6.0% Gross Capex intensity, average EXPRESS ~4% 5.0% 4.0% PeP ~3% 3.0% SUPPLY CHAIN ~2% 2.0% FORWARDING ~1% 1.0% 0.0% GROUP AVERAGE ~3% EXPRESS GROUP PeP SUPPLY CHAIN DGF PAGE 60

61 STRATEGY 2015 HAS DRIVEN SIGNIFICANT OPERATING IMPROVEMENT PeP: EBIT stabilization delivered DHL EBIT margins (2) : good progress, more to come to contribute to ~10% DHL EBIT CAGR target in EUR bn 1,286 1,298 1) 10.2% 1,199 Strategy 2015 EBIT target: min. EUR 1bn 1,120 1,107 1) 4.4% 2.7% 1.8% 2.9% 1.7% Q Strategy 2020 target: 3% EBIT CAGR Express: strong improvement Supply Chain: steady progress Forwarding, Freight: currently affected by NFE and low GP margins 1) Reported FY 12 EBIT including EUR -151m one-off effect from VAT settlement; Reported FY13 was restated by EUR ~60m for asset shift from DHL implemented on January 1, ) EBIT margin, last 12 months (rolling) INVESTOR RELATIONS MAY 2015 PAGE 61

62 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 PAGE 62

63 FOCUS. CC/OTHER COSTS CC / Other cost, as % of revenue CC / Other cost structure, % 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 PAGE 63

64 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. PAGE 64

65 INVESTOR RELATIONS CONTACTS Martin Ziegenbalg, Head of Investor Relations Robert Schneider Sebastian Slania Sarah Bowman Christian Rottler PAGE 65