Deutsche Post DHL Management US Roadshow Lawrence Rosen, CFO October 2011
Highlights Operational performance on track EBIT growth of 56% in H1 2011 2011 on track towards the upper end of our fullyear guidance range Major restructuring is completed Taking full benefit of globalization and outsourcing trends Clear strategic ambitions and targets Strategy 2015: Provider of choice Employer of choice Investment of choice MAIL: stabilization of EBIT at ~ 1bn, key driver parcel growth DHL: 13 15% EBIT CAGR in 2010 15, key driver fast growing regions Leverage our growth potential Organic growth driven by a focused business portfolio Leading market position in key growth regions Solid liquidity and balance sheet position 2
Agenda Performance on track, clear strategic ambition and targets MAIL: strategic levers for EBIT stabilization in place DHL: strong positioning in structural growth markets 3
Deutsche Post DHL at a Glance 2010 key figures Group: Sales: 51,481mn; EBIT 1) : 2,205mn; Employees 2) : 421,274 Domestic German Mail and Parcel International and Domestic Express Global Air, Ocean and Road Freight Global Supply Chain Solutions Sales: 13,821mn Sales: 11,111mn Sales: 14,341mn Sales: 13,301mn EBIT 1) : 1,152mn EBIT 1) : 785mn EBIT 1) : 390mn EBIT 1) : 274mn Empl. 2) : 146,365 Empl. 2) : 88,384 Empl. 2) : 41,729 Empl. 2) : 131,032 The postal service for Germany The logistics company for the world Corporate Center / Other: Sales: 1,302mn; EBIT 1) : -395mn; Employees 2) : 13,764 1) Underlying EBIT; 2) Average FTEs FY 2010 4
Clear Strategic Ambition Provider of Choice Improvement in customer satisfaction Stable or increased overall satisfaction in 3/4 of recent surveys Divisional business development programs set up Investment of Choice Building a track record of solid and improving performance 2010 results above increased guidance FY 2011 on track towards upper end of guidance range Employer of Choice Excellent trend in engagement (Employee Opinion Survey 2010) 79% participation rate (+3% yoy) Significant improvement in satisfaction for all KPIs (range of +2% to +8%) yoy 5
Group P&L H1 2011 Continued strong performance in H1 EUR mn H1 2010 H1 2011 Chg. Revenue increased despite adverse fxeffects and divestments. Organic growth was +6.2% Revenue 24,811 25,681 3.5% EBIT 1) 765 1,191 55.7% t/o Mail 632 556-12.0% t/o DHL 341 834 >100% Financial result Taxes Consolidated net profit 2) 1,186-88 1,828-319 -218 603 NA >100% -67.0% EBIT improved strongly in the DHL divisions while MAIL was negatively affected by the new VAT regulation and E-investments H1 2011 Financial result was impacted by Postbank effects of EUR -133mn compared to EUR +1,426mn last year Tax rate at 25% Consolidated net profit and EPS decreased only due to extraordinary Postbank effects in Q1 2010 EPS (in EUR) 1.51 0.50-67.0% 1) 2010 EBIT included non-recurring items of EUR -304mn, t/o Mail EUR -4mn and DHL EUR -300mn; 2) Attributable to Deutsche Post AG shareholders 6
Full-year 2011 Guidance EBIT now expected to be at the upper end of range driven by solid performance Mail result stabilizing 2011 Group Mail DHL divisions Corp. Center/ Other EUR 2.2 2.4bn EUR 1.0 1.1bn EUR 1.6 1.7bn ~EUR -0.4bn Upper end Net profit excl. Postbank transaction effects to improve in line with operational performance Capex not more than EUR 1.6bn Tax rate of 25% Restructuring will have a considerably lower influence on operating cash flow than last year (in 2011 c. EUR 200mn cash outflow) 7
Overview DP DHL Finance Strategy Target balance sheet structure is the leading element of our finance strategy Fundamental finance objectives Balance sheet structure Target / maintain BBB+ rating Reliability Predictability Strategic flexibility Low cost of capital Clear steering metric Dividend policy Priority for use of excess liquidity Financial debt portfolio 40 60% of net profit (cash flow / continuity considered) 2010 dividend up 8.3% to 0.65 1) (pay-out of 59%) 1. Invest in business 2. Fund pensions 3. Increase rating to A- 4. Special dividend, share buyback Syndicated bank facilities Bonds 1) Proposal to AGM 8
Agenda Performance on track, clear strategic ambition and targets MAIL: strategic levers for EBIT stabilization in place DHL: strong positioning in structural growth markets 9
MAIL: Key Figures mn H1 2010 H1 2011 Chg. Mail communication volumes mn units -1.6% Revenue 6,771 6,768 0.0% 8,380 8,112 8,185 7,955 7,826 +0.9% EBIT 1) 632 556-12.0% CAGR: -1.7% 3,889 Key topics Continued strong growth in Parcel Germany First successful steps into digital business: e.g. launch of E-Postbrief, MeinPaket.de New VAT regulation and investments into e-projects impacting Mail as expected Upcoming negotiations on stamp price cap, universal service obligation and labor agreements 2006 2007 2008 2009 2010 Parcel volumes mn units +4.2% 749 753 773 761 793 CAGR: +1.4% H1 2011 +9.5% 405 2006 2007 2008 2009 2010 H1 2011 1) Reported EBIT: including non-recurring items of -4mn in H1 2010 10
MAIL: Securing Sustainable Profitability EBIT stabilization materializing in 2011 Historic underlying EBIT (EUR bn) Guidance 2011 2.2 1.9 1.9 Growing parcel contribution and more flexible cost structure offset ongoing decline in traditional mail business 1.6 1.4 Last effect from VAT introduction in H1 2011 1.15 1.1 1.0 2011 Mail EBIT EUR 1 1.1 bn 2005 2006 2007 2008 2009 2010 2011F 11
MAIL: Securing Sustainable Profitability EUR 1bn EBIT secures Mail as a self-financing unit within the group Why EUR 1 bn? Beyond 2011 EBIT stabilize at ~ EUR 1bn level Cash generation D&A ~ EUR 0.2 bn EBIT ~ EUR 1bn Funding requirements Share of: Corp. costs, tax, dividend, etc Pensions in excess of EBIT expenses Investments 12
Mail: Components of EUR 1bn in 2015 Mail EBIT stabilization supported by structural shift to parcel and digital services Illustrative 2011e Mail EBIT structure (Guidance: EUR 1 1.1bn) 2015e Mail EBIT structure (Guidance: EUR 1bn) Digital services and Parcel Digital services and Parcel Classical letter mail products Classical letter mail products 13
MAIL: Growing in Parcel & Digital Services Digital strategy Mail Communication Dialogue Marketing Press Services E-Commerce Take our core business model into the digital world Secure communication E-Postbrief Efficient and targeted online advertising Werbemanager nugg.ad Adcould Pioneer a marketplace for quality journalistic content DieRedaktion.de Facilitating online shopping and parcel shipment MeinPaket.de DHL eparcel Traditional parcel business Successful integration into MAIL business in 2007 New parcel network (faster, more efficient, more capacity, more flexible pick-up times) 14
Parcel Germany Strategic Focus ecommerce will further drive parcel market growth in the next 10 years Enlarging scope for ecommerce New parcel networks and fulfillment capabilities facilitate penetration of all major retail segments ecommerce segment penetration over time? Food Parcel market development Estimate German parcel market (Day-Definite) EUR billions ~ 5% p.a. Shifting consumer behavior More flexible delivery options lead to accelerated shift to online purchasing especially in high income groups and for best agers Distance selling share of German retail turnover continues to increase FMCG 1) Fashion Electronics Media (books, audio, video etc.) 2010 2020 1) Fast Moving Consumer Goods (without food) Sources: Bundesverband des Versandhandels, Gesellschaft für Konsumforschung 15
Parcel Germany Strategic Focus Parcel Germany is shaping ecommerce as the leading service provider DP DHL only postal organization world-wide to offer nation-wide 24/7 access to all shipping needs 13,500 retail outlets 1,000 Parcel Boxes for 24/7 drop-off 2,500 automatic PACKSTATIONs to drop-off, frank, or use as delivery address Online Franking of all parcel products iphone and Android apps for all services To date 2mn registered Packstation customers 83% check whether vendor ships to Packstation before purchase 36% increase their online spend after registration for Packstation Target group in age segment 25 50 years with high online affinity Source: Europäisches Handelsinstitut 16
Parcel Germany Quarterly Development 2009 2011 Dynamic growth of Parcel Germany Revenues, in EUR mn Volumes, in mn units yoy +8% yoy +10% 623 588 595 768 650 619 628 835 706 667 186 176 179 220 189 181 184 239 206 199 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 17
MAIL: Cost Contribution to EBIT Stabilization Upcoming negotiations on regulatory environment and wage agreements: Regulation Revision of price-cap: decision expected in Sep/Oct 2011 Universal Service Obligation: ongoing political process Labor costs Wage tariffs: current agreement expires on 31/12/2011 18
Agenda Performance on track, clear strategic ambition and targets MAIL: strategic levers for EBIT stabilization in place DHL: strong positioning in structural growth markets 19
DHL Serves Structural Growth Markets DHL markets outgrow GDP Target revenue CAGR. for 2010 2015: 1.5 2.0X ~ 7% Air ~ 6 8% Ocean ~ 7 8% ~ 8 9% Real GDP Real trade Outgrowing underlying markets by 1 2% p.a. Continuous performance improvement Driving double-digit EBIT CAGR in 2010 2015 Achieve benchmark / sector leading operating margins by 2015 or earlier for each DHL unit 1.45 bn EBIT CAGR 13 15% 2010 2011 2012 2013 2014 2015 20
DHL Revenue Split by Region All DHL divisions with unparalleled presence in fast growing regions DHL Q2 2011 revenue by region 1) DHL Q2 2011 organic 2) revenue growth by region 23,1% 54% Europe 12% US 9% Americas ex US 19% Asia/Pacific Africa/ Middle East 10,6% 10,4% US Americas ex US 7,4% Asia/ Pacific 5,0% Europe 6% Africa/Middle East reported growth: 9.6% -13.5% 2.9% 0.6% 3.0% 1) 3rd party revenue 2) Organic excludes fx-effects and inorganic effects like acquisitions and disposals 21
DHL Footprint Asia DHL clear No. 1 in Asia Revenues 2010 1) (in ) (% of total) Employees Market position Customers 7.1bn 3.1bn 2.9bn 1.1bn 19% 29% 21% 8% > 60,000 > 30,000 > 10,000 > 20,000 No. 1 No. 1 No. 1 No. 1 > 500,000 > 86,000 > 300 1) 3rd party revenue Asia/Pacific; sum of DHL divisions or respective division 22
DHL EXPRESS: Key Figures mn H1 2010 H1 2011 Chg. Time Definite International (TDI) key trends Revenues per day 2) in m Shipments per day 000s Revenue 5,488 5,715 4.1% +10.7% +9.3% EBIT 1) 80 460 >100% 27.2 30.1 485 530 Key topics Shipment growth accelerating in Q2 Market leadership in Asia Pacific supports overall profit growth Further margin improvement due to strong revenue and volume growth as well as strict cost management H1 10 H1 11 H1 10 H1 11 Margin increased, second-best in the industry Underlying EBIT margin +140 bp 8.2% 7.8% 8.3% 6.9% 7.1% 5.9% 1) Reported EBIT: including non-recurring items of -272mn in H1 2010; 2) Currency translation impacts are eliminated. Hence, 2010 and 2011 data are aggregated with the same currency rate 10 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 23
DHL EXPRESS: Focus on our Core Competence TDI 2008 2010 Revenue 61% 75% 19% 34% Shipments Domestic = TDD + DDD International = TDI + DDI DHL Express focus on TDI has moved the needle Major domestic withdrawals contributing to that proportion Domestic activity shifted from mature EU markets to growth markets in Asia / Pacific and Latin America Domestic Strategy: Maintain successful, profitable businesses, e.g. India Blue Dart, Mexico Continuous monitoring of lower performing businesses 24
DHL EXPRESS: Global Market Positions in TDI External Research Underlining TDI Leadership across all regions outside the Americas Americas [3,914m ] DHL 16% UPS 24% Others 3% FedEx 57% EEMEA [360m ] Europe [5,288m ] FedEx 10% TNT 16% Others 13% UPS 23% DHL 38% Asia Pacific [4,316m ] DHL Express Global Market Share TDI of 30% Others 25% Others 28% DHL 34% TNT 12% DHL 46% TNT 7% UPS 9% FedEx 8% UPS 10% FedEx 21% Source: Market Intelligence 2010 (FY 2009 data; ATK, MRSC); Scope: BE, CH, DE, ES, FR; IT, NL, PL, SE, UK; AE, RU, ZA; AU, CN, HK, IN, JP, KR, SG; US, CAN, MX 25
DHL Express Asia Pacific: Strategic Focus Strong market leadership in Asia Pacific supports overall profitable growth DHL TDI global shipment flow, H1 2011 by origin/destination DHL is the leading logistics brand in Asia Outbound Asia DHL Express has clear market leadership in the Asian TDI market (2010: ~36%) 1) Clear advantage in Intra-Asian market ~50% of global DHL TDI shipments touch Asia Intra- Asia Inbound Asia Other 1) PA Consulting 26
DHL Express Asia Pacific: Strategic Focus Building out our leading local capabilities and network in Asia Improving connectivity, facilitating trade growth North Asia Hub DHL is the most reliable and fastest Express services provider in Asia GoWest Earlybird Overnight Europe from Pearl River Delta Trans Pacific Flights Next day delivered everywhere in EU Following growth westward Intra-Asia and Trans-Pacific routes 27
DHL Express Asia Pacific: Strategic Focus The new Shanghai Hub further strengthens DHL Express position across North Asia North Asia HUB (PVG) Opening spring 2012 Major customer benefit in Yangtze river delta as this region accounts for 35% of China s total value of imports/exports Major Transit time improvements across North Asia New hub will complement DHL Express Central Asia Hub in Hong Kong serving Pearl River Delta Hong Kong (HKG) 28
DHL Express Asia Pacific: Strategic Focus Building on decades of experience DHL Express remains committed to the International China business serving more than 400 cities China Beijing (PEK) Xi An (XIY) Chengdu (CTU) Wuhan (WHU) Dalian (DLC) Qingdao (TAO) Shanghai (PVG) Year Started: 1980 No. of Employee: 6,000 Facilities: 200 Hong Kong Year Started: 1972 No. of Employee: 2,100 Facilities: 17 Country Office Sales Office Gateway Hub Express Center(s) Fuzhou (FOC) Xiamen (XMN) Taipei (TPE) Guangzhou (CAN) Shenzhen (SZX) Taiwan Year Started: 1973 No. of Employee: 900 Facilities: 12 29
DHL GLOBAL FORWARDING, FREIGHT: Key Figures mn H1 2010 H1 2011 Chg. Key volume trends Air freight 000s Tons Export Ocean freight 000s TEU 2) Revenue 6,728 7,321 8.8% +2.4% +0.2% EBIT 1) 152 181 19.1% 1,184 1,212 1,331 1,334 Key topics Positive revenue and profit development despite unfavorable currency effects and volatile market environment in Q2 Further margin improvement achieved by favorable buying conditions, selective growth approach and efficient operations Focus on further operational performance improvements H1 10 H1 11 H1 10 H1 11 Gross profit increased Air freight GP/Tons Export Ocean freight GP/TEU 2) +6.6% +17.5% 412 439 200 235 H1 10 H1 11 H1 10 H1 11 1) Reported EBIT: including non-recurring items of -4mn in H1 2010; 2) Twenty Foot Equivalent Unit 30
DHL GLOBAL FORWARDING, FREIGHT: Strategic Focus Complete end-to-end solutions on asset-light basis Global Forwarding builds end-to-end solutions Globally all modes and combinations (Air, Sea, Road & Rail) Tailored to customer needs through a sector-based approach Including value added from related services and innovation leveraging a unique scale Global trade lane management Best price and access for our customers in an asset-light model Very limited investment in physical assets (transportation/storage) Qualified and entrepreneurial team Reliable and highly efficient processes Key success factors: We are market leader in our industry We have a second to none global footprint We continuously invest into IT capabilities and innovation We can accompany clients through major transformations 31
DHL GFF: End-to-end Solutions, Example Huawei Very successful, fast growing Chinese provider of mobile communication equipment Focus on R&D, production and sales Need for strong logistic backbone to capture revenue potential in developing countries + End-to-end logistic services ex China factory to multiple destinations/customer sites Commitment of end customer lead time requirements Roll out to 40 countries around the world Illustration START IN 2007 TODAY 32
DHL SUPPLY CHAIN: Key Figures Steady margin improvement mn H1 2010 H1 2011 Chg. Revenue by sector H1 2011 Key topics Revenue EBIT 1) 6,348 109 Revenues continue to increase due to upturn in existing business activity and new business wins Contract portfolio gradually improving through selectivity in new signings and exit from unprofitable contracts New business of around 1.1bn in annualized revenue won in 2010 (H1 2011: 540mn) 6,464 193 1.8% 77.1% Williams Lea Automotive 7% Technology 12% Others 2) 8% 10% 17% Life Sciences & Healthcare Retail 27% 19% Consumer 1) Reported EBIT: including non-recurring items of -24mn in H1 2010 and disposal gain on ETS in H1 2011 2) incl. Energy, Airline Business Solutions 33
Outsourcing: Simplify Our Customers Supply Chain End-to-End Supply Chain capability: more than pure warehousing Raw Materials Inbound Transport Production Flows Outbound Transport Warehousing Distribution Returns DHL Supply Chain Services ~ 2/3 of SC sales Plan Laying the foundation for a supply chain Source Getting the materials at the time required Make Supporting product manufacturing Store & Customize Getting it ready to sell Deliver Getting it where it needs to be Return Bringing it back when it s not needed 34
DHL SUPPLY CHAIN: Close to the Customer Critical success factor: understand the business of your customer Sector Focus Sector approach is how we manage the business in most countries and regions Dedicated Global teams established for six key sectors Supplemented by centralized global management for 24 dedicated accounts Strategic Products Replication Sector-specific logistics solutions Global replication leveraging: Global operational standards Sales Sector Teams Transfer of best practice H1 2011 Business wins by sector Others 1) Life Sciences & Healthcare 8% Automotive 15% 10% 9% 25% 38% 21% Consumer Technology 10% Retail NHS Supply Chain Providing above the wing items for airlines Testing and repairing cell phones Providing healthcare products to hospitals 1) incl. Energy, Airline Business Solutions 35
SUMMARY Focus on organic profitable growth in structurally growing markets Logistics industry driven by growth in global trade DHL is market leader in Asia and other growth regions Mail business benefits from strong growth in parcel and digital services Further margin potential due to operating leverage and efficiency improvements On track to achieve upper end of 2011 guidance range 36
Agenda Performance on track, clear strategic ambition and targets MAIL: strategic levers for EBIT stabilization in place DHL: strong positioning in structural growth markets Appendix 37
Group P&L Q2 2011 Continued strong performance in Q2 EUR mn Q2 2010 Q2 2011 Chg. Revenue increased slightly despite adverse fx-effects and divestments. Organic growth was +5.8% Revenue 12,795 12,839 0.3% EBIT 1) 253 562 >100% t/o Mail 243 183-24.7% t/o DHL 122 471 >100% Financial result Taxes Consolidated net profit 2) -142-18 81-158 -101 278-11.3% >100% >100% EBIT improved strongly in the DHL divisions while MAIL was negatively affected by the new VAT regulation and E-investments Q2 2011 Financial result was impacted by Postbank effects of EUR -77mn compared to EUR -22mn last year Tax rate at 25% Consolidated net profit and EPS increased due to improved EBIT margins and the absence of restructuring costs EPS (in EUR) 0.07 0.23 >100% 1) 2010 EBIT included non-recurring items of EUR -250mn, t/o Mail EUR -2mn and DHL EUR -248mn; 2) Attributable to Deutsche Post AG shareholders 38
Free Cash Flow Q2 2011 Free cash flow improved YoY EUR mn Cash from operating activities before changes in Working Capital Changes in Working Capital Net cash from operating activities after changes in Working Capital Q2 2010 1) 450-85 365 Q2 2011 1) 398-81 317 Operating cash flow before changes in working capital slightly below last year caused mainly by higher tax payments FFO/Debt at 31.0% including dividend payment of EUR 786mn Net Capex -224-335 Net M&A -248 31 Net Interest -7-10 Free Cash Flow -114 3 1) Included restructuring cash out of EUR -61mn in Q2 2011 and EUR -381mn in Q2 2010 39
Net Debt (-) / Liquidity (+) Net financial liquidity reduced compared to year-end 2010 due to annual payment to civil servants pension fund and dividend EUR mn +1,382 1) -542-786 +148 +202 1) Dec 31, 2010 Civil Servant Dividend All other June 30, 2011 Pensions liquidity effects 1) Adjusted for mandatory exchangeable bond and cash collateral on put options as well as the effects of the net valuation of the financial derivatives related to the Postbank transaction 40
Mail Divisional Results Q2 2011 Strong parcel business more than offset by impacts of new VAT regulation and e-investments EUR mn Q2 2010 Q2 2011 Chg. Stable revenue reflects parcel performance and good volume development in Mail Communication Revenue 3,265 3,254-0.3% Mail communication volumes: +1.3% yoy Parcel volumes: +9.9% yoy EBIT Operating Cash Flow 243 1) 267 183 182-24.7% -31.8% Despite strong parcel business EBIT below last year s level due to impact of new VAT regulation and investments in digital services Capex 114 95-16.7% Operating cash flow in line with EBIT development Capex below last year due to timing effects 1) 2010 EBIT included non-recurring items of EUR -2mn 41
Express Divisional Results Q2 2011 Healthy EBIT growth improves margin to 8.3% EUR mn Q2 2010 Q2 2011 Chg. Revenues increased due to accelerated international volume growth. Organic growth was 11.3% Revenue 2,868 2,950 2.9% TDI revenues per day 2) : 31.7 (+12.4% yoy) Shipments per day: 548,000 (+10.7% yoy) EBIT Operating Cash Flow -30 1) 255 244 184 NA -27.8% EBIT grew significantly due to revenue growth, higher operational efficiencies and absence of restructuring expenses 1) Capex 63 140 >100% Operating cash flow declined due to increased working capital needs to support growth Higher Capex due to investments into aviation network 1) 2010 EBIT included non-recurring items of EUR -228mn 2) Currency translation impacts are eliminated. Hence, 2010 and 2011 data are aggregated with the same currency rate 42
Global Forwarding, Freight Divisional Results Q2 2011 Continued profitable growth and high cash flow EUR mn Q2 2010 Q2 2011 Chg. Revenues increased despite adverse fxeffects, unsecure market environment, and in particular, lower freight rates. Organic growth was 7.1% Revenue 3,611 3,740 3.6% Air freight 000s Tons: 1,106 (+1.2%) Ocean freight 000s TEU 2) : 686 (-1.2%) EBIT Operating Cash Flow 99 1) 15 112 148 13.1% >100% Strong improvement in Freight operating performance Gross profit improving due to better buying conditions Capex 19 15-21.1% Improved GP and cost discipline drive EBIT increase; EBIT margin increasing from 2.7% last year to 3.0% Substantial growth in operating cash flow primarily due to focused net working capital management 1) 2010 EBIT included non-recurring items of EUR -3mn 2) Twenty Foot Equivalent Unit 43
Supply Chain Divisional Results Q2 2011 Revenue growth continues, excluding negative fx-effects and disposal of ETS business in the US EUR mn Revenue EBIT Operating Cash Flow Q2 2010 3,304 53 1) -22 Q2 2011 3,191 115 65 Chg. -3.4% >100% NA Revenue below last year due to negative fxeffects and disposal of ETS business. Organic growth was 6.1% Increased EBIT due to higher business activity, continued measures to improve profitability and gain on disposal of ETS business Capex 47 61 29.8% Higher Capex investment reflecting business growth Contracts won Annualized revenue Supply Chain New gains 260 220 1) 2010 EBIT included non-recurring items of EUR -17mn 44
Dividend for FY 2010 increased to 0.65 Dividend development since IPO 0,90 Dividend increase of 8.3% to 0.65 approved by the AGM on May 25th 0,70 0,75 0,60 0,60 0,65 Adjusted for Postbank effects and non-recurring items this reflects a payout ratio of 59% and is within our target payout ratio of 40 60% 0,37 0,40 0,44 0,50 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 45
P+L Impact of Postbank Transaction in 2009/10 Main impacts on the financial result: at equity result of Postbank Postbank transaction valuation effects interest component for mandatory exchangeable bond and cash collateral m Q1 Q2 2009 Q3 Q4 FY Q1 Q2 2010 Q3 Q4 FY Net income from associates 20 26 25-43 28 34 24 31-33 56 Net other finance costs/net other financial income 598-34 -335-212 17 1,294-166 -253 58 933 t/o Postbank-related 737 97-188 -14 632 1,414-46 -123 272 1,517 t/o not Postbank-related -139-131 -147-198 -615-120 -120-130 -214-584 Total net finance costs/net financial income 618-8 -310-255 45 1,328-142 -222 25 989 t/o Postbank-related 757 123-163 -66 651 1,448-22 -92 235 1,569 t/o not Postbank-related -139-131 -147-189 -606-120 -120-130 -210-580 2010 financial result excluding Postbank related effects was -580m 46
Changes to the P+L Impact of Postbank Transaction in 2011 Reclassification of Postbank shares as Assets held for sale at end of February 2011 Share price < ~ 22.00 Share price > ~ 22.00 Mark to market valuation of investment Offset by mark to market valuation of derivatives Value of investment capped at ~ 22.00 Mark to market valuation of derivatives Impact 2011 Interest component -180m p.a. -180m p.a. Valuation no significant impact ~ -90m per 1 increase in Postbank share price and vice versa 47
Impact of Postbank Transaction on the P+L in Q2 2011 Net profit excluding Postbank effects increased to EUR 355mn in Q2 2011 Postbank effects include EUR mn Consolidated net profit (reported) 1) H1 H1 20102011 1,828 603 Q2 2010 81 Q2 2011 278 at equity result of Postbank until Feb. 28 th Reclassification of Postbank shares as Assets held for sale, i.e. no further equity consolidation t/o Postbank effects Net profit excluding Postbank effects 1,426-133 -22-77 402 736 103 355 +83.1% >100% Postbank valuation effects interest component for mandatory exchangeable bond and cash collateral Q2 2011 financial result excluding Postbank related effects was EUR -81mn (Q2 2010 EUR -120mn) 1) Attributable to Deutsche Post AG shareholders 48
INVESTOR RELATIONS CONTACTS Martin Ziegenbalg, Head of Investor Relations +49 228 182 63000 E-mail: m.ziegenbalg@deutschepost.de Robert Schneider +49 228 182 63201 E-mail: robert.schneider1@deutschepost.de Sebastian Slania +49 228 182 63203 E-mail: sebastian.slania@deutschepost.de Florian Bumberger +49 228 182 63208 E-mail: florian.bumberger@deutschepost.de Daniel Stengel +49 228 182 63202 E-mail: daniel.stengel@deutschepost.de 49
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 50