Interim Report January 1 to June 30, 2003

Interim Report January 1 to June 30, 2003

H1/2003 Despite a good operating performance, cuts in mail prices and low interest rates reduced consolidated revenue slightly by 0.8% to 19,195 million. EXPRESS and LOGISTICS Corporate Divisions recorded strong earnings growth Profit from operating activities (EBITA) for the Group fell by 6.6% to 1,469 million due to the lower mail prices and one-time other operating income recorded in the prior year Consolidated net profit rose substantially from 155 million to 650 million Measures implemented under the STAR value creation and integration program made an accumulated contribution to earnings of 260 million Financial highlights H1 H1 Change 2002 2003 in % Total revenue in m 19,351 19,195 0.8 thereof international revenue in m 7,724 7,775 0.7 Profit from operating activities (EBITA) in m 1,573 1) 1,469 6.6 Return on sales 2) in % 8.1 7.7 Net profit for the period in m 1,032 666 35.5 Consolidated net profit for the period in m 155 650 319.4 Cash flow 3) (Postbank at equity) in m 1,427 769 46.1 1) Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs 2) EBITA/revenue 3) Cash flow from operating activities 2

Report by the Board of Management Report by the Board of Management Business developments Although the war in Iraq came to an end in April 2003, the global economy continues to stagnate. In Germany, too, no trend reversal materialized in the second quarter of the calendar year. In H1/2003, Deutsche Post World Net generated revenue of 19,195 million, down slightly on the comparative prior-period amount ( 19,351 million). Profit from operating activities (EBITA) fell in the first half of 2003 by 6.6% to total 1,469 million (previous year: 1,573 million). The fundamentally strong operating performance was impacted by three factors: firstly, the price reductions ordered by the regulatory authorities at the beginning of the year, which we had anticipated in our margin target for the MAIL Corporate Division for 2003 as a whole. The second factor, namely the fact that income from the reversal of Postbank s negative goodwill was no longer included, was also factored into our margin forecast. In addition, we recorded one-time other operating income in the previous year, distorting the basis of comparison. Revenue increased in the LOGISTICS Corporate Division and, in particular, in the EXPRESS Corporate Division; it fell in the MAIL Corporate Division. Income in the FINANCIAL SERVICES Corporate Division fell as a result of the low level of interest rates. However, this did not impact earnings. The proportion of consolidated revenue generated abroad rose from 39.9% in the prior-year period to 40.5%. Profit from operating activities (EBITA) developed in much the same way as revenue: the substantial increase in earnings in the EXPRESS and LOGISTICS Corporate Divisions was offset by a drop in earnings in the MAIL and FINANCIAL SERVICES Corporate Divisions. This was due to the development of other operating income, as well as the lowered mail prices. Other operating income fell year-on-year from 922 million to 474 million, mainly for two reasons: firstly, the largest single item, the reversal to income of Postbank s negative goodwill, is no longer included in 2003. In previous years, the reversal of this negative goodwill increased earnings for the Group as a whole and the FINANCIAL SERVICES Corporate Division by approximately 212 million each year. Secondly, we were able to record one-time other operating income in H1/2002. Since the beginning of 2003, we have been reporting the interest cost on provisions for pensions and on other interest-bearing provisions under net finance costs instead of in profit from operating activities (EBITA); the prior-year amounts have been adjusted to enhance comparison. Net finance costs totaled 382 million (previous year: 301 million) in the period under review. This includes the interest cost on provisions for pensions and on other interest-bearing provisions of 293 million (previous year: 244 million). With a tax rate of 30%, we recorded consolidated net profit of 650 million in H1/2003 (previous year: 155 million). The consolidated net profit for the previous year was impacted by the provision which we had to set up to take account of the European Commission s ruling on state aid and which was reflected in the extraordinary expense. Earnings per share also improved accordingly from 0.14 to 0.58. Cash flow (Postbank at equity) totaled 769 million in the period under review (previous year: 1,427 million). This includes the repayment of allegedly unjustified state aid totaling 907 million (including interest) to the Federal Republic of Germany at the beginning of the year. Compared with December 31, 2002 ( 1,497 million), net debt (Postbank at equity) as of June 30, 2003 increased to 2,228 million. The dividend payments totaling 445 million for fiscal year 2002 on June 6, 2003 reduced cash and cash equivalents, which are also factored into this measure. We included long-term deposits in net debt for the first time as of June 30, 2003. The amount reported on December 31, 2002 was adjusted accordingly. The investment expenditures reported under cash flows from investing activities (Postbank at equity) increased year-on-year from 578 million to 931 million. This growth is primarily the result of an increase in DHL s noncurrent financial assets. 3

Report by the Board of Management The opportunities and risks presented in the 2002 Annual Report remained more or less unchanged in the second quarter of 2003. In the spring, we assumed that the lung disease SARS would spread further, thus impacting the business activities of Deutsche Post World Net in those regions affected. Looking back, however, this was not the case. In Asia Pacific, some trends even started reversing: to avoid the risk of infection, personal contact in the region declined rapidly, resulting in an increase in the shipment volume. As a service provider, Deutsche Post World Net does not undertake any research and development activities in the narrower sense, and thus has not made any corresponding disclosures. Significant events Dividend increases after a difficult year At the Annual General Meeting (AGM) of Deutsche Post AG on June 5, 2003, the shareholders approved the proposal made by the Board of Management and the Supervisory Board and resolved the distribution of 445 million. For our shareholders, this corresponds to a dividend of 0.40 per share and, as such, to an increase of 8.1% encouraging news after a difficult year. The AGM also authorized the Company to acquire own shares. In addition to the authorization resolved last year, the Board of Management is now also authorized to cancel the own shares purchased, with the consent of the Supervisory Board, and without requiring a further resolution by the AGM. Progress despite headwind in strategic acquisitions In the first few months of the current fiscal year, we completed a series of strategically valuable acquisitions for which we were still awaiting approval. As reported in the interim report for Q1/2003, Deutsche Post World Net will acquire a 100% interest in Securicor Omega Holdings Ltd., a joint venture that was established in the UK in 1999. We have now overcome the hurdle of the approval process: the European Commission approved the acquisition of the remaining stake on June 20, 2003. We fully consolidated the company for the first time on July 1, 2003. Our planned acquisition of US express delivery company Airborne, Inc. is facing the expected legal and political headwind from competitors UPS and FedEX. Airborne, Inc. s shareholders will vote on the transaction at the company s General Meeting, which is scheduled for August 14, 2003. We aim to complete the acquisition as soon as it has been approved by the shareholders and all necessary regulatory approvals have been obtained. Deutsche Post and ver.di sign employment pact On July 5, 2003, Deutsche Post AG and the ver.di services union agreed on a package of pioneering measures. These measures mean that the Company will rule out all compulsory redundancies until March 31, 2008 and will guarantee that deliveries are made by Deutsche Post employees until the end of 2006, with the exception of 600 parcel districts. In return, we can expand the combined delivery system, which means that mail carriers can now also deliver parcels. Weekly working hours in deliveries can be extended to 48 hours on a voluntary basis, and two days which were previously holidays have been abolished. This employment pact, which is the first of its kind in Germany, gives our employees job security for the next few years. At the same time, it also allows Deutsche Post to improve cost structures in the long term and thus substantially boost its competitiveness, particularly in the EXPRESS Corporate Division. This means that we have met one of the key criteria for achieving the improvements in earnings which we expect to realize by the end of 2005 as part of the STAR program. 4

Report by the Board of Management Overview of significant events In Q2/2003 May 1, 2003 May 2, 2003 May 12, 2003 May 15, 2003 May 27, 2003 June 5, 2003 June 20, 2003 June 21, 2003 Start of the global advertising campaign for the new DHL umbrella brand Commissioning of the Group-wide intranet procurement portal Standard & Poor s issues new credit rating on the Group Construction work starts on DHL s new Asian hub at Hong Kong International Airport Deutsche Post publishes its first environmental report AGM resolves 8.1% increase in dividend European Commission approves full takeover of UK company Securicor Omega Moody s changes Deutsche Post World Net s long-term credit rating After June 30, 2003 July 5, 2003 July 21, 2003 Deutsche Post and ver.di agree forward-looking employment pact valid until 2008 US antitrust authorities raise no objections to the acquisition of Airborne, Inc. STAR value creation and integration program Global advertising campaign for new DHL umbrella brand Since the beginning of the year, Deutsche Post World Net has been consolidating its national and international parcel and express business, as well as its global logistics business, under the DHL brand. To make our customers aware of the benefits of the new DHL brand, we launched an international advertising campaign on May 1, 2003. The campaign shows how DHL will offer its customers more, in every sense of the word, in the future: more expertise namely that of what were previously three separate companies. More efficiency by means of integrated networks. More end-to-end solutions that is, one-stop logistics. As part of our philosophy of one face to the customer we have been rebranding vehicles, packaging materials and buildings with the new design since April of this year. The brand relaunch, i.e. new design and international advertising, will cost around 125 million. Further STAR projects have started successfully at DHL: the Global Mail and Danzas Air & Ocean Business Divisions are increasingly using the DHL aircraft instead of outsourcing, thus improving capacity utilization. Additional freight capacities are now being consolidated and procured jointly. We are also further harmonizing our networks: the entire Asian region will be served by the new hub at Hong Kong International Airport in the future. This project, which is worth US$100 million, was ceremonially launched on May 15, 2003; the first of three construction phases is scheduled for completion as early as next year. Group-wide intranet portal bundles procurement volume In addition to the measures at DHL, another main package of measures relating to STAR consists of various projects within the Group, including both division-specific and cross-divisional initiatives. One key example of a crossdivisional project relates to procurement. As announced in the report for Q1/2003, we are working on pooling our substantial purchasing power, which has a volume of around 16 billion per year. In May 2003, we commissioned our new procurement portal as part of this initiative. The intranetbased portal connects the existing Group platforms and will be the central information and transaction platform for Group procurement in the future. It will allow procurement employees to access all of the information relevant to procurement and use the related applications from any location worldwide, and at any time. We aim to improve earnings in this area by at least 200 million by 2005 (inclusive) by restructuring Group procurement, pooling our purchasing power, setting procurement standards and improving Group-wide procurement management. Price adjustments for mail services One division-specific initiative launched as part of the STAR program involves extending the price adjustments for mail services made at the beginning of the year to cover special services, too: for example, we increased the prices for Einschreiben Einwurf (registered items delivered to the addressee s letter box), Eigenhändig (delivery to addressee 5

Report by the Board of Management only) and Rückschein (advice of delivery). As is customary in other EU countries, we stopped offering our customers products such as redirection and storage free of charge at the beginning of the year. These price measures had a direct effect on profit from operating activities (EBITA) in H1/2003. Structural improvements in the retail outlet network One key aspect of STAR is to increase the use of, and make structural improvements to our existing networks. In doing so, we are focusing on the needs and usage patterns of our customers. Customer behavior in relation to the demand for financial services, for example, has changed substantially: more and more transactions are being made online or by telephone, and smaller retail outlets are scarcely being used for banking at all. At the same time, there is rising customer demand for qualified advice on financial transactions at the larger retail outlets. Postbank and Deutsche Post have now responded to this development by revising the offering in the retail outlet network: the 720 center outlets will be concentrating even more on bank advisory services in the future. We will be providing our 2,200 financial services advisory employees with the appropriate further training. At the same time, Postbank has been focusing the activities of its around 1,200 smallest retail outlets on larger outlets since July 1, 2003. As with the review of the location of our mailboxes, this demand-driven structural adjustment continues to comply fully with the quality standards set out by the Post-Universaldienstleistungsverordnung (Postal Universal Service Ordinance): the number of Deutsche Post retail outlets will not change. In most locations, customers will continue to have access to a retail outlet at which they can conduct banking business within a three-kilometer radius. At present, Postbank is represented at a total of around 11,500 retail outlets nationwide. Contribution to earnings from the STAR program In H1/2003, the measures implemented as part of the STAR value creation and integration program contributed 174 million to earnings, 81 million of which was attributable to the second quarter. As planned for the initial phase of the program, this was mainly achieved through cross-divisional projects within the Group. This means that the accumulated contributions to earnings from the STAR program from its launch in November 2002 to the present already amount to 260 million, as illustrated in the graphic below. We are reiterating the projected earnings growth from STAR, and expect profit from operating activities (EBITA) in the Group to reach at least 3.6 billion by 2005. STAR s contribution to earnings in m 1,600 1,400 2005 target: at least 1,400 million 1,200 1,000 800 2004 target: at least 700 million 600 400 2003 target: at least 350 million 200 0 86 81 93 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2003 2004 2005 260 million 6

Report by the Board of Management Outlook We do not currently expect the global economy to recover noticeably in the current fiscal year. Although the end of the war in Iraq has removed one of the main sources of uncertainty on the markets, structural problems in the major industrialized countries are standing in the way of any immediate upturn. We had initially feared that the lung disease SARS would impair our business activities. Fortunately, this is not the case. The spread of the disease appears to have been successfully stemmed: the World Health Organization (WHO) lifted all of the travel restrictions relating to the disease on July 5, 2003. We do not believe that the somewhat weaker first half of 2003 is an indicator of earnings development in H2. For the period between July and December 2003, we expect the Group to record a profit from operating activities (EBITA) which will be at least on the same level as the comparable prior-year period. This is why we believe that we can achieve a higher EBITA (at least 2.9 billion) for fiscal year 2003 as a whole than we expected in the spring. We had previously forecasted an EBITA of at least 2.8 billion. We are forecasting earnings development at the Corporate Divisions as follows: In the EXPRESS Corporate Division, we still expect to achieve a minimum EBITA margin of 2.5% for 2003 as a whole; in fiscal year 2002, the adjusted EBITA margin amounted to 2.2%. In the LOGISTICS Corporate Division, we still expect to achieve a minimum EBITA margin of 3.2%. The adjusted value for fiscal year 2002 was 3.0%. In the FINANCIAL SERVICES Corporate Division, the income from the reversal of Postbank s negative goodwill disclosed in the previous year is no longer included in 2003. In fiscal year 2002 as a whole, the income from the reversal of negative goodwill amounted to 212 million. For 2003 as a whole, we are still aiming to achieve a return on equity (RoE) from Postbank s business operations of 11.5% (previous year: 10.7%) and to reduce the cost/income ratio to below 75%, as against the figure of around 77.7% for fiscal year 2002. We are still anticipating a contribution to earnings from the STAR program of at least 350 million for the year as a whole, and estimate that consolidated net profit in 2003 will increase significantly in the absence of the extraordinary expense disclosed in the previous year. We still expect the MAIL Corporate Division to achieve a minimum EBITA margin of 16% for 2003 as a whole. The fact that this target is down on last year s adjusted figure of 17.7% is a result of the price cuts ordered for the most important mail products, which took effect on January 1, 2003 and which we are countering by stepping up our marketing activities and with the addition of the new Foreign Domestic International Business Division. 7

Deutsche Post Stock and Bonds Deutsche Post Stock and Bonds Deutsche Post stock The economic environment remained difficult even after the end of the war in Iraq in Q2/2003. The European Central Bank issued a positive signal in June when it lowered key interest rates by 50 basis points to 2.00%. The DAX grew by around 4% in H1/2003. By contrast, Deutsche Post stock significantly outperformed the market again, growing by around 21%. As of June 30, 2003, the last trading day of the period under review, it closed at 12.79. Deutsche Post s shareholder structure has not changed from the structure presented in the 2002 Annual Report. Bonds In the second quarter of 2003, rating agencies Standard & Poor s (S&P) and Moody s Investor Service (Moody s) downgraded our credit rating for the Group s long-term debt, as is shown in the overview on page 9. S&P had previously changed its method of measuring pension provisions; these are now viewed as full financial liabilities. Along with other companies, we expressly disagree with this opinion, as we pointed out in our first interim report for 2003. Moody s reasons for the downgrade include the planned acquisition of Airborne, Inc., which is considered to represent an additional risk for Deutsche Post World Net. S&P, on the other hand, sees the acquisition, as we do, as a positive step in strengthening the Group s market position. Even after the purchase of Airborne, Inc., the Group will still have a relatively low level of debt and a solid capital structure. Because most of our financial liabilities are hedged by fixed rates of interest, the down-grades in the ratings will not have any direct effect on Group financing costs. Deutsche Post World Net will continue to pursue its traditionally sound and conservative financial policy in the future, in order to maintain its above-average credit rating. Deutsche Post share price development in % 130 120 110 100 90 Deutsche Post stock DAX Euro STOXX 50 120.66% 103.72% 95.93% 80 70 60 1/2/03 1/17/03 2/1/03 2/16/03 3/3/03 3/18/03 4/2/03 4/17/03 5/2/03 5/17/03 6/1/03 6/16/03 6/30/03 Source: Bloomberg 8

Deutsche Post Stock and Bonds Deutsche Post World Net ratings Rating Moody s Standard & Poor s Fitch Ratings Investors Service Long-term A1 A AA- On Review for Negative On Rating Watch possible Downgrade Negative Short-term P-1 A-1 F1+ Stable Negative On Rating Watch Negative Investor relations On August 22, 2003 we are inviting analysts and institutional investors to our Capital Markets Day held at our headquarters in Bonn for the second time this year. The event will focus on the MAIL and FINANCIAL SERVICES Corporate Divisions. Capital Markets Day will, like all other investor relations events, be broadcast live on the Internet at http://investorrelations.dpwn.de. 9

Corporate Governance Corporate Governance The Board of Management and the Supervisory Board of Deutsche Post AG have resolved to comply with all of the recommendations of the German Corporate Governance Code in the version dated November 7, 2002. The resolutions adopted by the AGM of Deutsche Post AG on June 5, 2003 fulfill the final requirement for the implementation of this compliance. In accordance with the recommendation set forth in section 5.4.5 of the German Corporate Governance Code, the AGM has resolved the amendment of the Company s Articles of Association to include a provision on the performance-related remuneration of the Supervisory Board, and to take into account the chairmanship and membership of Supervisory Board committees. In addition, the AGM has agreed to permit the transmission of the AGM via the Internet or another communication medium, in order to give the public unrestricted access to the meeting. The shareholders have also resolved a new stock option plan, which provides for competitive overall remuneration of management staff who have grown with the Company and are now internationally focused. The new plan s first stock options will be issued on August 1, 2003. The Government Commission on the German Corporate Governance Code resolved amendments to the German Corporate Governance Code at its plenary meeting held on May 21, 2003, and, in particular, made new recommendations relating to the provisions governing the composition and amount of the remuneration of Boards of Management. The Board of Management and the Supervisory Board of Deutsche Post AG will examine these amendments in detail and respond to them in its annual Declaration of Conformity. As an anticipatory measure, the Chairman of the Supervisory Board presented the objectives and structure of the Board of Management s remuneration to the AGM in detail. Personnel changes in the Group s management and supervisory bodies Supervisory Board: shareholders representatives Left (June 30, 2003) Alfred N. Schindler Appointed (July 15, 2003) Dipl.-Ing. Dr. Ing. E. h. Jürgen Weber, Chairman of the Supervisory Board, Deutsche Lufthansa AG Supervisory Board: employees representatives Left (June 5, 2003) Henry Hillmann Petra Pfisterer Appointed (June 5, 2003) Annette Harms, Deputy Chair of Works Council, Deutsche Postbank AG, Hamburg, Member of the Supervisory Board, Deutsche Postbank AG Silke Oualla-Weiß, Chair of Works Council, DHL wwe GmbH, Dortmund Branch 10

The Corporate Divisions The Corporate Divisions The segments at a glance Lowered mail prices and one-time other operating income recorded in H1/2002 led to an expected drop in revenue and profit in the MAIL Corporate Division. Despite substantial negative currency effects, revenue in the EXPRESS Corporate Division increased profit from operating activities (EBITA) is showing strong growth. At 77 million, profit from operating activities (EBITA) in the LOGISTICS Corporate Division is up 14.9% year-onyear. Additional income from Postbank operations has, to a large extent, already offset the discontinuation of the amortization of Postbank s negative goodwill in the FINANCIAL SERVICES Corporate Division in 2003. Segments by Corporate Division for H1 in m MAIL EXPRESS 1) LOGISTICS 1) FINANCIAL Other/ Group SERVICES 2) Consolidation 2) H1 H1 H1 H1 H1 H1 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 External revenue 5,094 5,022 7,518 7,663 2,733 2,737 3,948 3,715 58 58 19,351 19,195 Internal revenue 723 678 130 189 0 34 494 446 1,347 1,347 0 0 Total revenue 5,817 5,700 7,648 7,852 2,733 2,771 4,442 4,161 1,289 1,289 19,351 19,195 Profit or loss from operating activities before goodwill amortization (EBITA) 1,246 3) 1,106 108 3) 168 67 77 276 3) 232 124 3) 114 1,573 3) 1,469 Goodwill amortization 1 2 70 89 48 45 0 0 0 0 119 136 Profit or loss from operating activities after goodwill amortization (EBIT) 1,245 3) 1,104 38 3) 79 19 32 276 3) 232 124 3) 114 1,454 3) 1,333 Net income from associates 0 0 3 22 2 0 0 0 4 0 1 22 Segment assets 4) 4,311 4,003 10,210 10,191 3,159 3,034 140,135 135,034 355 60 157,460 152,202 Investments in associates 4) 0 0 108 85 18 15 0 0 0 0 126 100 Segment liabilities including non-interest-bearing provisions 4), 5) 1,523 1,372 3,291 3,318 1,080 1,092 133,861 127,968 1,560 801 141,315 134,551 Segment investments 122 94 2,321 613 114 162 173 77 20 9 2,710 937 Depreciation, amortization and write-downs 186 192 355 373 79 74 134 133 27 28 781 800 Other non-cash expenses 37 35 96 55 6 45 62 124 168 91 369 350 Employees 6) 137,617 133,019 122,823 124,469 30,728 31,684 35,583 33,975 10,668 10,237 337,419 333,384 1)Prior-period amounts restated: restructuring of EXPRESS and LOGISTICS Corporate Divisions 2)Prior-period amounts restated: reallocation of retail outlet operations from Other/Consolidation to the FINANCIAL SERVICES Corporate Division 3)Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs 4)Segment assets, investments in associates and segment liabilities are reported as of the balance sheet dates December 31, 2002 and June 30, 2003; the remaining items are reported for the periods ended June 30, 2002 and June 30, 2003 5)Prior-period amounts restated: segment liabilities include non-interest-bearing provisions as from fiscal year 2003 6)Number of employees calculated as averages for fiscal years 2002 and 2003 (FTEs) Segments by region for H1 in m Germany Europe excluding Americas Asia/Pacific Other Group Germany regions H1 H1 H1 H1 H1 H1 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 External revenue 11,627 11,420 4,941 4,973 1,609 1,739 980 873 194 190 19,351 19,195 Segment assets 1) 136,421 132,273 14,311 13,085 5,518 5,685 897 775 313 384 157,460 152,202 Segment investments 430 187 1,461 401 537 239 242 36 40 74 2,710 937 1)Segment assets are reported as of the balance sheet dates December 31, 2002 and June 30, 2003; the remaining items are reported for the periods ended June 30, 2002 and June 30, 2003 11

The Corporate Divisions Segments by Corporate Division for Q2 in m MAIL EXPRESS 1) LOGISTICS 1) FINANCIAL Other/ Group SERVICES 2) Consolidation 2) Q2 Q2 Q2 Q2 Q2 Q2 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 External revenue 2,462 2,353 3,777 3,840 1,377 1,344 1,992 1,850 40 35 9,648 9,422 Internal revenue 350 330 67 77 0 33 230 232 647 672 0 0 Total revenue 2,812 2,683 3,844 3,917 1,377 1,377 2,222 2,082 607 637 9,648 9,422 Profit or loss from operating activities before goodwill amortization (EBITA) 468 3) 349 65 3) 87 39 36 140 3) 114 45 3) 68 667 3) 518 Goodwill amortization 0 1 33 45 24 22 0 0 0 0 57 68 Profit or loss from operating activities after goodwill amortization (EBIT) 468 3) 348 32 3) 42 15 14 140 3) 114 45 3) 68 610 3) 450 Net income from associates 0 0 5 22 2 0 0 0 4 0 7 22 Segment investments 78 37 232 296 36 43 142 40 30 1 458 415 Depreciation, amortization and write-downs 95 97 176 189 39 37 69 67 15 14 394 404 Other non-cash expenses 1 15 65 31 1 26 18 76 101 41 184 159 1)Prior-period amounts restated: restructuring of EXPRESS and LOGISTICS Corporate Divisions 2)Prior-period amounts restated: reallocation of retail outlet operations from Other/Consolidation to the FINANCIAL SERVICES Corporate Division 3)Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs Segments by region for Q2 in m Germany Europe excluding Americas Asia/Pacific Other Group Germany regions Q2 Q2 Q2 Q2 Q2 Q2 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 External revenue 5,742 5,657 2,524 2,341 774 876 563 424 45 124 9,648 9,422 Segment investments 268 106 707 100 582 114 72 24 7 71 458 415 12

The Corporate Divisions MAIL Corporate Division MAIL H1 H1 Change Q2 Q2 Change 2002 2003 in % 2002 2003 in % Total revenue in m 5,817 5,700 2.0 2,812 2,683 4.6 Profit from operating activities before goodwill amortization (EBITA) in m 1,246 1) 1,106 11.2 468 1) 349 25.4 Return on sales 2) in % 21.4 19.4 16.6 13.0 1) Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs 2) EBITA/revenue As already reported, Deutsche Post was forced to lower the prices for its most important mail products at the beginning of the year. Our customers therefore shifted their demand from December to January where possible. As such, we were able to keep revenue in the MAIL Corporate Division on a similar level to the prior year in the first few months of fiscal year 2003. However, this positive development was put into perspective in H1/2003: revenue fell by 2.0% to 5,700 million (previous year: 5,817 million). In the Mail Communication Business Division, the price cuts ordered by the regulatory authority caused a drop in revenue of 108 million to 3,463 million (previous year: 3,571 million) in the period under review. One encouraging development was the fact that we were able to stabilize sales of business customer letters at the prior-year level, despite the continued economic slump. The direct advertising trend continues among our customers. Although the advertising market continued to be characterized by weakness on the whole, revenue in the Direct Marketing Business Division not only remained at the prioryear level, but increased slightly to 1,019 million (previous year: 1,009 million). Revenue growth in the area of higherpriced addressed mailings largely offset the planned reduction in Postwurfsendungen (unaddressed advertising mail) volumes. The economic downturn in the German press industry continued unrelentingly in the first half of 2003: once again, the circulation and scope of titles fell, and in some cases titles were discontinued completely. Revenue in our Press Distribution Business Division fell accordingly by 4.3% to 399 million (previous year: 417 million) in the period under review. Revenue by Business Division in m H1 H1 Change Q2 Q2 Change 2002 2003 in % 2002 2003 in % Mail Communication 3,571 3,463 3.0 1,723 1,604 6.9 Direct Marketing 1,009 1,019 1.0 483 474 1.9 Press Distribution 417 399 4.3 207 200 3.4 Solutions International 97 98 1.0 49 53 8.2 Foreign Domestic International 0 43 0 22 Internal revenue 723 678 6.2 350 330 5.7 Total 5,817 5,700 2.0 2,812 2,683 4.6 Mail Communication (Deutsche Post AG share) mail items (millions) H1 H1 Change Q2 Q2 Change 2002 2003 in % 2002 2003 in % Business customer letters 3,905 3,910 0.1 1,887 1,809 4.1 Private customer letters 700 694 0.9 335 331 1.2 Total 4,605 4,604 0.0 2,222 2,140 3.7 13

The Corporate Divisions Direct Marketing (Deutsche Post AG share) mail items (millions) H1 H1 Change Q2 Q2 Change 2002 2003 in % 2002 2003 in % Infopost/Infobrief (addressed advertising mail) 2,661 2,635 1.0 1,303 1,256 3.6 Postwurfsendung/Postwurf Spezial (unaddressed/partly addressed advertising mail) 1,927 1,735 10.0 843 781 7.4 Total 4,588 4,370 4.8 2,146 2,037 5.1 The Foreign Domestic International Business Division, which we are reporting for the first time in fiscal year 2003, contributed 43 million to revenue in H1. The figures contain the revenues generated by our national mail business in the Netherlands and the UK. We have consolidated our national and international activities in the area of value added services in our second new Solutions International Business Division. The operational units of this Business Division include PrintCom, as well as subsidiaries that were previously allocated to the national Business Divisions, including Deutsche Post In Haus Service GmbH and Merkur Systemhaus für Dialog- Kommunikation GmbH. This Business Division generated revenue of 98 million in the first half of 2003 (previous year: 97 million). The profit from operating activities (EBITA) in the MAIL Corporate Division fell by 140 million to 1,106 million. We had expected this development in the traditionally weaker second quarter, and had taken it into account in the lower margin forecast for the year as a whole. It is mainly the result of one-time other operating income recorded in 2002 on the one hand, and the price cuts mentioned above on the other. We were able to partly compensate the latter. At 19.4%, the return on sales was therefore below the prior-year level of 21.4%. EXPRESS Corporate Division EXPRESS H1 1) H1 Change Q2 1) Q2 Change 2002 2003 in % 2002 2003 in % Total revenue in m 7,648 7,852 2.7 3,844 3,917 1.9 Profit from operating activities before goodwill amortization (EBITA) in m 108 2) 168 55.6 65 2) 87 33.8 Return on sales 3) in % 1.4 2.1 1.7 2.2 1) Prior-period amounts restated: restructuring of EXPRESS and LOGISTICS Corporate Divisions 2) Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs 3) EBITA/revenue The EXPRESS Corporate Division has had a new reporting structure since the beginning of 2003: our courier, express and parcel (CEP) activities are now broken down by region under the DHL umbrella brand. In addition, the Eurocargo Business Unit, which previously formed part of the LOGISTICS Corporate Division, has been incorporated into the new structure of the EXPRESS Corporate Division. The prior-period amounts were adjusted as necessary. In H1/2003, the revenue generated by the EXPRESS Corporate Division increased by 2.7% year-on-year to 7,852 million (previous year: 7,648 million). Generally positive business developments were offset by losses attributable to exchange rate effects totaling 445 million. 14

The Corporate Divisions The Europe region generated revenue growth of 4.4% to 5,654 million (previous year: 5,415 million). In terms of operating activities, we increased revenues in what has always been a high-revenue region, in particular in Germany, with retail outlet customer products and Europack National ; business on the Iberian peninsula also developed positively once again. Further growth came as a result of the first-time full consolidation of the Spanish company Guipuzcoana on October 1, 2002 and the Italian parcel company Casa di Spedizioni Ascoli S.p.A. on February 1, 2003. Negative exchange rate effects in the USA and Latin America eroded the strong operating growth of the Americas region, which was achieved by selling higher-priced products in the USA, and also due to the positive effects from the acquisition of Loomis in Canada, which we consolidated fully for the first time on February 1, 2003. Revenue fell overall by 6.0% year-on-year to 812 million (previous year: 864 million). The Asia Pacific region was also hit by negative exchange rate effects which eroded the positive business developments in China and Southeast Asia in particular. Overall, revenues fell by 1.6% in H1/2003 to 547 million (previous year: 556 million). The Emerging Markets (EMA) recorded growth in revenue of 11.4% in H1 to total 283 million (previous year: 254 million). This means that the positive trend that emerged in the first few months of the year has actually accelerated. In the second quarter, this development was also helped by economic recovery in the Middle East following the end of the war in Iraq. Revenue in the Global Mail Business Division in H1/ 2003 was hit by the currency effects mentioned above and the drop in shipment volumes in the USA, and fell 6.3% to 625 million (previous year: 667 million). Revenue in EXPRESS Corporate Division in m H1 H1 Change Q2 Q2 Change 2002 2003 in % 2002 2003 in % Europe 5,415 5,654 4.4 2,703 2,797 3.5 Americas 864 812 6.0 429 419 2.3 Asia Pacific 556 547 1.6 305 288 5.6 Emerging Markets (EMA) 254 283 11.4 132 151 14.4 Global Mail 667 625 6.3 318 294 7.5 Reconciliation 108 69 36.1 43 32 25.6 Total 7,648 7,852 2.7 3,844 3,917 1.9 The increase in profit from operating activities (EBITA), which rose by 55.6% to 168 million (previous year: 108 million), was again driven by the Europe region in particular. The return on sales was 2.1% in H1, compared with 1.4% in the previous year. 15

The Corporate Divisions LOGISTICS Corporate Division LOGISTICS H1 1) H1 Change Q2 1) Q2 Change 2002 2003 in % 2002 2003 in % Total revenue in m 2,733 2,771 1.4 1,377 1,377 0.0 Profit from operating activities before goodwill amortization (EBITA) in m 67 77 14.9 39 36 7.7 Return on sales 2) in % 2.5 2.8 2.8 2.6 1) Prior-period amounts restated: restructuring of EXPRESS and LOGISTICS Corporate Divisions 2) EBITA/revenue The LOGISTICS Corporate Division also has a new reporting structure: the former Eurocargo Business Unit was transferred to the EXPRESS Corporate Division at the start of the fiscal year. The prior-year figures were adjusted accordingly. Our air and ocean freight activities are now reported under the name Danzas Air & Ocean. In H1/2003, revenue increased by 1.4% to 2,771 million (previous year: 2,733 million). This growth is entirely attributable to the first quarter. In the second quarter, both of the Business Divisions were able to maintain the level of the prior-year period. Revenue in the Solutions Business Division rose by 2.4% year-on-year to total 797 million (previous year: 778 million). We benefited from positive development with our customers in the electronics/telecommunications sector in particular. However, revenues for Q2 fell in the key automotive and fast moving consumer goods (FMCG) sectors, which are highly cyclical. This eroded the increases recorded at the beginning of the year. In the Danzas Air & Ocean Business Division, we grew further operationally as a result of the rise in the air and ocean freight volumes handled. However, revenues in H1 grew by only 1.2% to 1,979 million (previous year: 1,955 million). The strong hike in the value of the euro produced substantial negative currency effects totaling 201 million. Revenue by Business Division in m H1 H1 Change Q2 Q2 Change 2002 2003 in % 2002 2003 in % Solutions 778 797 2.4 378 378 0.0 Danzas Air & Ocean 1,955 1,979 1.2 999 1,004 0.5 Reconciliation 5 5 Total 2,733 2,771 1.4 1,377 1,377 0.0 At 77 million, profit from operating activities (EBITA) was up 14.9% on the prior-year amount ( 67 million), as a result of the operating growth recorded in the Solutions Business Division. Correspondingly, the return on sales improved by 0.3% year-on-year to 2.8%. Solutions: revenue by sector in m H1 H1 Change Q2 Q2 Change 2002 2003 in % 2002 2003 in % Automotive 47 47 0.0 25 18 28.0 Pharma/Healthcare 32 33 3.1 18 19 5.6 Electronics/Telecom 287 304 5.9 141 155 9.9 Fast moving consumer goods 274 274 0.0 146 139 4.8 Fashion 117 120 2.6 41 43 4.9 Other 21 19 9.5 7 4 42.9 Total 778 797 2.4 378 378 0.0 16

The Corporate Divisions FINANCIAL SERVICES Corporate Division FINANCIAL SERVICES H1 1) H1 Change Q2 1) Q2 Change 2002 2003 in % 2002 2003 in % Income in m 4,442 4,161 6.3 2,222 2,082 6.3 Profit from operating activities (EBITA) in m 276 2) 232 15.9 140 2) 114 18.6 Cost/income ratio in % 83.3 76.8 84.8 76.7 Return on equity (RoE) before taxes in % 8.2 10.8 8.0 10.9 Tier 1 ratio 3) in % 6.9 6.9 6.9 6.9 1) Prior-period amounts restated: reallocation of retail outlet operations from Other/Consolidation to the FINANCIAL SERVICES Corporate Division 2) Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs 3) Reported as of the respective balance sheet date Information on Postbank Dec. 31, June 30, Change March 31, June 30, Change 2002 2003 in % 2003 2003 in % Private checking accounts in thousands 3,939 4,037 2.5 3,989 4,037 1.2 Corporate checking accounts in thousands 374 376 0.5 375 376 0.3 Average demand deposits in m 14,153 14,692 3.8 14,539 14,692 1.1 Savings volume in m 35,683 36,950 3.6 36,853 36,950 0.3 The FINANCIAL SERVICES Corporate Division comprises Postbank, the Pension Service and the retail outlet network. In H1/2003, its income fell by 6.3% to 4,161 million (previous year: 4,442 million). The main reason for this was the drop in interest income as a result of lower interest rates. The income development of the retail outlet network is on the same level as in the previous year, in line with projections. In H1/2002, the Corporate Division s profit from operating activities (EBITA) contained income from the reversal of negative goodwill at Postbank in the amount of 107 million; this practice was discontinued for the first time in 2003. As a result, EBITA fell year-on-year by 15.9% to 232 million (previous year: 276 million) in H1/2003. However, excluding the income from the reversal of negative goodwill, EBITA rose by 63 million or 37.3%. This positive development was helped along by the significant increase in earnings at Postbank. Income from banking transactions (net interest income, net fee and commission income, net trading income and net income from investment securities) improved by 141 million or 13.0% in the period under review. The largest proportion of this increase was attributable to net interest income, which rose by 50 million, due to the fact that interest expenses recorded a sharper fall than interest income. Net fee and commission income, net trading income and net income from investment securities increased by a total of 91 million. Postbank s other expenses, which consist of the allowance for losses on loans and advances, staff costs and other non-staff operating expenses, and net other income and expenses, rose by 9.6% year-on-year in H1/2003. This increase also contains a higher loan loss allowance as a result of the increased credit volume. The cost/income ratio improved as against H1/2002 by 6.5 percentage points to 76.8% as a result of the appreciable rise in income from banking transactions. Postbank s return on equity (RoE) before taxes rose from 8.2% in H1/2002 to 10.8%. This ratio serves as a measure of the return on capital employed. The critical banking tier 1 ratio (in accordance with the German Banking Act) remained unchanged at the end of H1/2003 at 6.9%. 17

Income Statement Income Statement For the period January 1 to June 30 in m Deutsche Post Deutsche Post Deutsche Post Deutsche Post World Net World Net World Net World Net H1 H1 Q2 Q2 2002 2003 2002 2003 Revenue and income from banking transactions 19,351 19,195 9,648 9,422 Other operating income 922 474 465 252 Total operating income 20,273 19,669 10,113 9,674 Materials expense and expenses from banking transactions 8,903 8,599 4,499 4,281 Staff costs 6,557 * 6,561 3,273 * 3,300 Depreciation and amortization expense excluding goodwill amortization 662 664 337 336 Other operating expenses 2,578 * 2,376 1,337 * 1,239 Total operating expenses excluding goodwill amortization 18,700 18,200 9,446 9,156 Profit from operating activities before goodwill amortization (EBITA) 1,573 1,469 667 518 Goodwill amortization 119 136 57 68 Profit from operating activities (EBIT) 1,454 1,333 610 450 Net income from associates 1 22 7 22 Net other finance costs 302 * 360 148 * 205 Net finance costs 301 382 155 227 Profit from ordinary activities 1,153 951 455 223 Income tax expense 121 285 160 67 Net profit for the period 1,032 666 615 156 Minority interest 27 16 22 6 Extraordinary expense 850 0 850 0 Consolidated net profit for the period 155 650 257 150 Basic and diluted earnings per share 0.14 0.58 0.23 0.13 Basic and diluted earnings per share before extraordinary expense 0.90 0.58 0.53 0.13 * Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs 18

Balance Sheet Balance Sheet As of June 30, 2003 in m Deutsche Post Deutsche Post World Net World Net Dec. 31, 2002 June 30, 2003 ASSETS Noncurrent assets Intangible assets 5,076 5,095 Property, plant and equipment 9,085 8,837 Noncurrent financial assets Investments in associates 126 100 Other noncurrent financial assets 249 672 375 772 14,536 14,704 Current assets Inventories 214 231 Receivables and other assets 5,972 * 6,033 Receivables and other securities from financial services 137,641 132,304 Current financial instruments 3 3 Cash and cash equivalents 2,835 * 2,118 146,665 140,689 Deferred tax assets 1,446 1,121 162,647 156,514 EQUITY AND LIABILITIES Equity Issued capital 1,113 1,113 Reserves 3,323 3,520 Consolidated net profit 659 650 5,095 5,283 Minority interest 117 127 Provisions Provisions for pensions and other employee benefits 6,292 6,321 Tax provisions 1,510 1,469 Other provisions 4,882 4,960 12,684 12,750 Liabilities Financial liabilities 3,816 3,958 Trade payables 2,707 2,439 Liabilities from financial services 132,851 126,966 Other liabilities 5,377 4,991 144,751 138,354 162,647 156,514 *Item restated due to reclassification of cash equivalents from receivables and other assets to cash and cash equivalents 19

Cash Flow Statement Cash Flow Statement For the period January 1 to June 30 in m Deutsche Post Deutsche Post World Net World Net June 30, 2002 June 30, 2003 Net profit before taxes and extraordinary expense 1,153 951 Extraordinary expense 850 0 Net profit before taxes 303 951 Net interest income 285 * 365 Depreciation and amortization expense 803 799 Gains/losses on disposal of noncurrent assets 130 24 Non-cash income and expense 212 310 Provisions 194 * 173 Taxes paid 36 29 Net profit before changes in working capital 819 1,579 Changes in working capital Inventories 17 17 Receivables and other assets 497 30 Receivables/liabilities from financial services 128 24 Liabilities and other items 1,359 808 Net cash from operating activities 1,792 808 Proceeds from disposal of noncurrent assets Divestitures 0 0 Other noncurrent assets 217 134 217 134 Cash paid to acquire noncurrent assets Acquisition of companies 49 224 Other noncurrent assets 727 983 776 1,207 Net cash used in investing activities 559 1,073 Proceeds from issue of financial liabilities 587 513 Repayment of financial liabilities 1,026 409 Dividends and other payments to owners 412 445 Interest paid 96 140 Interest and dividends received 58 25 Current financial instruments 1 0 Net cash used in financing activities 888 456 Net change in cash and cash equivalents 345 721 Change in cash and cash equivalents due to changes in consolidated group 0 4 Cash and cash equivalents at January 1 1,966 2,835 Cash and cash equivalents at June 30 2,311 2,118 * Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs 20

Statement of Changes in Equity Statement of Changes in Equity For the period January 1 to June 30 in m Issued Reserves Consolidated Total capital Capital Retained IAS 39 net profit equity reserves earnings reserves Balance at January 1, 2002 1,113 344 2,413 94 1,577 5,353 Capital transactions with owner Capital contribution from retained earnings Dividend 412 412 Other changes in equity not recognized in income Currency translation differences 97 97 Other changes 12 18 438 408 Changes in equity recognized in income Appropriation to retained earnings 1,165 1,165 0 Consolidated net profit 659 659 Balance at December 31, 2002/January 1, 2003 1,113 356 3,499 532 659 5,095 Capital transactions with owner Capital contribution from retained earnings Dividend 445 445 Other changes in equity not recognized in income Currency translation differences 162 162 Other changes 3 148 145 Changes in equity recognized in income Appropriation to retained earnings 214 214 0 Consolidated net profit 650 650 Balance at June 30, 2003 1,113 356 3,548 384 650 5,283 21

Notes Notes to the Deutsche Post AG Interim Report as of June 30, 2003 1. Basis of accounting The consolidated interim financial report of Deutsche Post AG as of June 30, 2003 was prepared in accordance with the International Accounting Standards/International Financial Reporting Standards (IASs/IFRSs) adopted and published by the International Accounting Standards Board (IASB), and with the interpretations issued by the Standing Interpretations Committee (SIC, now: International Financial Reporting Interpretations Committee IFRIC), required to be applied as of the reporting date. The accounting and measurement policies, as well as the explanations and disclosures, are generally based on the same accounting policies used in the 2002 consolidated financial statements. Since the beginning of 2003, the interest cost on discounted provisions in accordance with IAS 19 is disclosed under net other finance costs. For H1/2003, this resulted in a 293 million increase in net finance costs. This primarily relates to the Group s interest cost on discounted provisions for pensions. The prior-period amount was adjusted correspondingly ( 244 million). In addition, please note that the segment reporting is oriented on our new Group structure. The Eurocargo Business Unit, which was included in the LOGISTICS Corporate Division until December 31, 2002, was integrated into the EXPRESS Corporate Division. The prior-period amounts were adjusted correspondingly. For further information on the accounting policies applied, please refer to the consolidated financial statements for the period ended December 31, 2002, on which this interim report is based. 2. Consolidated group In addition to Deutsche Post AG as the parent company, the consolidated group includes the following companies: Consolidated group Number of fully consolidated companies Dec. 31, March 31, June 30, 2002 2003 2003 German 109 109 111 Foreign 539 538 537 Number of proportionately consolidated companies German 2 2 2 Foreign 27 27 27 Number of companies accounted for at equity German 5 6 5 Foreign 37 36 35 22

Notes 3. Stock options The number of stock options on shares of Deutsche Post AG granted to executives in Group management levels 1 and 2 changed as follows as against December 31, 2002: Stock options Tranche 1 Tranche 2 Outstanding stock options at beginning of year 5,173,140 10,306,038 Outstanding SARs at beginning of year 336,876 446,934 Options granted 0 0 SARs granted 0 0 Options exercised 0 0 SARs exercised 0 0 Options lapsed 609,948 1,828,968 SARs lapsed 72,942 92,718 Outstanding stock options as of June 30, 2003 4,563,192 8,477,070 Outstanding SARs as of June 30, 2003 263,934 354,216 Tranche 3 will be issued on August 1, 2003. Details of the share-based payment system for executives can be found in the Notes to the Consolidated Financial Statements for the period ended December 31, 2002 in our 2002 Annual Report. Deutsche Post AG does not hold any treasury shares as of June 30, 2003. 4. Changes in the structure of the cash flow statement Slight changes were made to the structure of the cash flow statement as of Q1/2003. This primarily relates to the reclassification of interest payments as net cash used in financing activities, and taxes paid and provisions as net profit before changes in working capital. The prior-period figures were adjusted accordingly. 23

Income Statement (Postbank at Equity) Income Statement (Postbank at Equity) For the period January 1 to June 30 in m Deutsche Post Deutsche Post Deutsche Post Deutsche Post World Net World Net World Net World Net H1 H1 Q2 Q2 2002 2003 2002 2003 Revenue 15,843 15,928 7,881 7,794 Other operating income 787 457 399 247 Total operating income 16,630 16,385 8,280 8,041 Materials expense 6,117 6,156 3,083 3,092 Staff costs 6,241 * 6,255 3,114 * 3,150 Depreciation and amortization expense excluding goodwill amortization 604 610 306 308 Other operating expenses 2,347 * 2,121 1,241 * 1,099 Total operating expenses excluding goodwill amortization 15,309 15,142 7,744 7,649 Profit from operating activities before goodwill amortization (EBITA) 1,321 1,243 536 392 Goodwill amortization 120 136 59 68 Profit from operating activities (EBIT) 1,201 1,107 477 324 Net income from associates 5 22 3 22 Net income from measurement of Deutsche Postbank group at equity 202 132 102 73 Net other finance costs 315 * 348 150 * 193 Net finance costs 108 238 51 142 Profit from ordinary activities 1,093 869 426 182 Income tax expense 60 204 190 26 Net profit for the period 1,033 665 616 156 Minority interest 28 15 23 6 Extraordinary expense 850 0 850 0 Consolidated net profit for the period 155 650 257 150 * Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs 24

Balance Sheet (Postbank at Equity) Balance Sheet (Postbank at Equity) As of June 30, 2003 in m Deutsche Post Deutsche Post World Net World Net Dec. 31, 2002 June 30, 2003 ASSETS Noncurrent assets Intangible assets 4,937 4,949 Property, plant and equipment 8,108 7,871 Noncurrent financial assets Investments in associates 126 100 Investments in Deutsche Postbank group 4,405 4,581 Other noncurrent financial assets 197 623 4,728 5,304 17,773 18,124 Current assets Inventories 211 231 Receivables and other assets 5,736 * 5,596 Receivables and other securities from financial services 0 0 Current financial instruments 3 3 Cash and cash equivalents 2,022 * 1,410 7,972 7,240 Deferred tax assets 862 641 26,607 26,005 EQUITY AND LIABILITIES Equity Issued capital 1,113 1,113 Reserves 3,323 3,520 Consolidated net profit 659 650 5,095 5,283 Minority interest 103 113 Provisions Provisions for pensions and other employee benefits 5,729 5,759 Tax provisions 772 728 Other provisions 4,529 4,606 11,030 11,093 Liabilities Financial liabilities 3,816 3,958 Trade payables 2,629 2,269 Liabilities from financial services 0 0 Other liabilities 3,934 3,289 10,379 9,516 26,607 26,005 *Item restated due to reclassification of cash equivalents from receivables and other assets to cash and cash equivalents 25

Cash Flow Statement (Postbank at Equity) Cash Flow Statement (Postbank at Equity) For the period January 1 to June 30 in m Deutsche Post Deutsche Post World Net World Net June 30, 2002 June 30, 2003 Net profit before taxes and extraordinary expense 1,093 869 Extraordinary expense 850 0 Net profit before taxes 243 869 Net interest income 285 * 348 Depreciation and amortization expense 741 745 Gains/losses on disposal of noncurrent assets 130 24 Non-cash income and expense 36 81 Net income from measurement at equity 204 132 Provisions 177 * 185 Taxes paid 28 25 Net profit before changes in working capital 766 1,677 Changes in working capital Inventories 17 19 Receivables and other assets 345 258 Liabilities and other items 1,023 1,147 Net cash from operating activities 1,427 769 Proceeds from disposal of noncurrent assets Divestitures 0 0 Other noncurrent assets 183 123 183 123 Cash paid to acquire noncurrent assets Acquisition of companies 49 220 Other noncurrent assets 578 931 627 1,151 Net cash used in investing activities 444 1,028 Proceeds from issue of financial liabilities 631 513 Repayment of financial liabilities 1,026 409 Dividends and other payments to owners 412 445 Interest paid 96 140 Interest and dividends received 58 25 Postbank dividend 137 99 Current financial instruments 1 0 Net cash used in financing activities 707 357 Net change in cash and cash equivalents 276 616 Change in cash and cash equivalents due to changes in consolidated group 0 4 Cash and cash equivalents at January 1 594 2,022 Cash and cash equivalents at June 30 870 1,410 * Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs 26

This interim report contains certain statements that are neither reported financial 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 interim report.

Financial calendar August 22, 2003 Capital Markets Day 1) for analysts and institutional investors November 7, 2003 Analyst conference call 1) on the first nine months of 2003 March 31, 2004 Financials press conference and analyst conference 1) on the 2003 fiscal year Publication of the 2003 Annual Report May 6, 2004 Annual General Meeting 2) 1) Live Internet broadcast on our homepage at http://investorrelations.dpwn.de 2) Live Internet broadcast of the speech by the Chairman of the Board of Management at http://investorrelations.dpwn.de All information is subject to correction and may be changed at short notice Published by: Deutsche Post AG Headquarters Corporate Department Investor Relations 53250 Bonn Germany Responsible for content: Martin Ziegenbalg Coordination/Editors: Kathrin Engeländer, Beatrice Scharrenberg Investor Relations: Fax: +49 (0) 2 28/182-6 32 99 E-mail: ir@deutschepost.de Press Office: Fax: +49 (0) 2 28/182-98 80 E-mail: pressestelle@deutschepost.de Deutsche Post World Net online: www.dpwn.de For information on Deutsche Post stock please e-mail ir@deutschepost.de English translation by: Deutsche Post Foreign Language Service et al. This interim report is also published in German. July 2003 Mat. No. 675-200-136