Goldman Sachs Business Services Conference Martin Ziegenbalg, Head of Investor Relations. London, 24 June 2014

Transcription

1 Goldman Sachs Business Services Conference Martin Ziegenbalg, Head of Investor Relations London, 24 June 2014

2 Q HIGHLIGHTS Good start into the year Solid growth momentum with Group organic revenue growth of 5.3% PeP EBIT flat as higher volumes and prices were offset by increased factor costs Strong Express EBIT and margin performance driven by continued TDI growth and increased efficiency in Aviation and Ground operations EBIT decline in Forwarding recovering towards end of quarter Cash Flow generation showing usual seasonal pattern and reversal of temporary Q4 effects 2014 guidance confirmed LONDON 24 JUNE 2014 PAGE 2

3 OUR NEXT HORIZON: ACCELERATING ORGANIC GROWTH Inorganic expansion Unlocking our potential Accelerating organic expansion Create the base PAGE 3

4 NEW STRATEGIC PLAN BUILDS ON SUCCESSFUL BASE Our DPDHL Corporate framework remains valid Vision Mission Purpose Guiding Principles Goals Die Post für Deutschland, The Logistics Company for the World Excellence. Simply delivered. We connect people, improving their lives Respect & Results 3 Bottom Lines & Living Responsibility Our strategic plan STRATEGY 2020 Focus. Connect. Grow. PAGE 4

5 STRATEGY 2020: FOCUS. CONNECT. GROW. Strategy 2020 FOCUS. CONNECT. GROW. We focus on what has made us successful We connect across the organization We expand in new segments 1. Logistics as our core 2. Committed to the needs of our stakeholders & our planet 3. A family of divisions to further expand margins. 1. One global team 2. Certified specialists for everything we do 3. Connected approach in operations, commercial, green solutions and shared services to achieve quality leadership and service excellence. 1. Leader in ecommerce related logistics 2. Accelerate footprint shift towards emerging markets 3. Tap new market opportunities for organic expansion to achieve sustainable above-market growth. PAGE 5

6 STRUCTURAL MARKET GROWTH TRENDS Our markets are affected by four major actionable global trends Continued global trade growth but shift in pattern Acceleration of ecommerce and more demand for last-mile solutions Accelerating impact of process technology and automation Increasing demands for responsible business Growth in long-haul trade and transport slowing down Importance of emerging markets still increasing More fine distribution and direct shipping, also in B2B Multi-channel delivery for B2C Automation drives efficiencies Importance of data leads to new ways of running businesses Increasing importance of social and ethical behavior Growing need for greener solutions PAGE 6

7 LOGISTICS MARKETS OFFER ATTRACTIVE GROWTH Plenty of room to grow within logistics market 1) Market share DPDHL in total logistics market 2) 4% Share of market with significant DPDHL presence 3) 19% Attractive growth in key addressable market segments within logistics Estimated Market CAGR , in EUR +5-7% +8% +5-6% +4-5% +5-6% +2-3% Parcel Germany Parcel Domestic International International Express Air Freight Forwarding Ocean Freight Forwarding Contract Logistics 1) 2011 data; 2) i.e. Global SameDay/ Courier, Parcel, Express, AFR, OFR, Ind. Proj., LTL, FTL and Cont. Logistics; 3) i.e. >5% market share (in value) in respective market PAGE 7

8 Post - ecommerce Parcel: NEW REVENUE REPORTING STRUCTURE Old Structure 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 9,972m ecommerce - Parcel New Structure Domestic and cross-border parcels and parcel operations in selective markets 2013 Revenue, restated: EUR 5,289m PAGE 8

9 SUBDIVISION DHL ecommerce & Parcel The key element of future profit growth DHL Parcel DHL ecommerce Parcel Germany Continue success story Expand and innovate production capacity Invest in new service features e.g., private parcelbox, allyouneed.com Parcel Europe Leverage & invest in businesses transferred from DHL (BNL, PL, CZ) Re-orient and broaden service offering towards B2C Gradually expand European coverage Americas Asia Build on existing businesses Global Mail US Blue Dart India Int l B2C shipping services/domestic and destination based efulfillment as a start in emerging markets Aspiration: Integrated offer of all ecommerce-related logistics and efacilitation services PAGE 9

10 DHL PARCEL: SUCCESSFUL MODEL IN GERMANY Consumer centric innovation leader on the first and last mile in Germany EXAMPLES DHL Paketshops Private parcelbox Packstation Grocery delivery Shopping platforms Evening delivery/ Flexible delivery PAGE 10

11 EMERGING MARKETS CONTINUE TO GROW STRONGER Macro trends continue to support high growth in emerging markets Growth differential expected to continue Demographics, e.g. India and China to provide >50% of increase in global workforce with college education by 2030 Continuing urbanization, e.g., in China expected to reach 70% by 2030 Growing consumer base, e.g., global middle class set to grow 2.6 fold by 2030 with 90% coming from Asia pacific GDP, real CAGR e 2.0% Mature USA UK Japan Western Europe 5.4% Emerging China India Brazil South East Asia Source: IHS Global Insight PAGE 11

12 OUR AMBITION FOR THE EMERGING MARKETS Group revenue footprint 78% 22% Today 2013 Mature Markets 70% 30% Target 2020 target Emerging Markets Building on our leading market positions in growth regions, 30% emerging market targets is AMBITIOUS BUT ACHIEVABLE PAGE 12

13 EXPRESS: KEEP EXECUTING OUR SUCCESSFUL FOCUS STRATEGY Motivated People Great Service Quality Loyal Customers Profitable Network QCC 10% margin by 2015 CIS program is a key success factor enabling our employees to deliver the best performance for our customers Focus on the best service for our TDI customers driving industry-leading volume growth Insanely customer centric, supported by strengthening brand awareness Strict discipline on pricing tools / principles Virtual airline balances service quality, planning flexibility and operating costs Focus on costs and cash generation On track towards 2015 targets driven by organic growth, operating leverage as well as direct and indirect cost management PAGE 13

14 DHL FORWARDING, FREIGHT: TRANSFORMING IN A CHALLENGING MARKET Difficult market environment & NFE implementation Market Trends Shift from AFR to OFR Lower weight of tech products Cyclical Factors Low overall volumes due to global GDP, leading to very volatile freight rate development DHL historic sector mix: strong Technology and Engineering & Manufacturing exposure Focus on SME bearing first fruits NFE is the right solution Modular state-of-the-art IT platform Standardized processes on a global scale NFE costs and timing Peak costs expected in 2014 System implemented by end of 2014 All countries live in new operational structure by end of H PAGE 14

15 DHL SUPPLY CHAIN: STRONG STRATEGIC POSITIONING DHL is by far market leader in a strongly fragmented market DHL Supply Chain profiting from strong EM footprint Outsourced contract logistics: market shares Revenue: EUR bn ~13% CAGR % 87% ~13% 8,2% 2,4% 2,2% 7% 7% +12% +17% 12% 9% Latin America, Middle East, Africa Asia Pacific Largest Providers 1) Other 3 largest providers DHL CEVA K+N Market leader in contract logistics in Asia and Latin America 1) DHL projection based on forecasts from IHS Global Insight and Transport Intelligence; suppliers with global footprint PAGE 15

16 OUR ASPIRATION FOR 2020: DEFINING OUR INDUSTRY When people think of logistics, we want them to think DPDHL We are the most global We are the quality leader We are the most customer-centric LONDON 24 JUNE 2014 PAGE 16

17 TARGETS 2015 EBIT targets confirmed, new 2020 targets introduced EBIT 2013 base 1) FY 2014 FY 2015 FY 2020 PeP 2) EUR 1.286bn ~ EUR 1.2bn Min. EUR 1.1bn ~3% CAGR DHL EUR 1.997bn EUR bn EUR bn ~10% CAGR CC/Other EUR -422m Better than EUR -400m ~ EUR -350m < 0.5% of Group revenue Group EUR 2.861bn EUR bn EUR bn >8% CAGR Free cash flow generation to remain priority No ambition for major M&A Finance policy including payout ratio range to remain unchanged 1) Adjusted for 2013 EBIT of ~EUR 60m from transfer of assets from DHL to MAIL effective on Jan 1, ) Post - ecommerce - Parcel PAGE 17

18 CONFIRMATION OF FINANCE POLICY Target / maintain rating BBB+ Deployment of Free Cash Flow 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 Share buybacks and/or extraordinary dividends PAGE 18

19 SUMMARY DPDHL remains focused on organic, profitable growth: Maintain successful company structure, values, and goals Further intensify focus on ecommerce by expanding successful German Parcel business model internationally Accelerate footprint shift towards emerging markets to capture higher growth Unchanged M&A and capex intensity: operating profit growth will drive further fundamental improvement in FCF generation COMBINING OUR PROVEN SUCCESS FACTORS WITH AN INCREASED FOCUS ON STRUCTURAL GROWTH TRENDS LONDON 24 JUNE 2014 PAGE 19

20 Appendix PAGE 20

21 DEUTSCHE POST DHL AT A GLANCE 2013 key figures Group: Sales: EUR 55,085m; EBIT: EUR 2,861m; Employees 1) : 435,520 Domestic German Mail and Parcel International and Domestic Express Global Air, Ocean and Road Freight Global Supply Chain Solutions Sales: EUR 14,452m Sales: EUR 12,712m Sales: EUR 14,838m Sales: EUR 14,277m EBIT: EUR 1,226m EBIT: EUR 1,133m EBIT: EUR 483m EBIT: EUR 441m Empl. 1) : 149,692 Empl. 1) : 84,986 Empl. 1) : 44,174 Empl. 1) : 143,761 The postal service for Germany The logistics company for the world Corporate Center / Other: Sales: EUR 1,251m; EBIT: EUR -422m 1) Average FTEs FY 2013 PAGE 21

22 FULL-YEAR 2014 GUIDANCE EBIT Group EUR bn PeP ~ EUR 1.2bn DHL divisions Corp. Center/ Other Free Cash Flow EUR bn Better than EUR -400m Free Cash Flow To at least cover 2013 dividend Tax rate around 19% (from ~20%) Gross Capex of around EUR 1.9bn PAGE 22

23 GROUP P&L Q EUR m Q Q Chg. Revenue 13,403 13, % EBIT % t/o PeP % t/o DHL % Financial result 1) % Taxes % Consolidated net profit % EPS (in EUR) % 1) Q1 2013: EUR44 m gain from release of tax provisions Sales only slightly up due to adverse currency effects (-3.4%) and minor disposals. Organic growth of +5.3% supported by growth in all divisions PeP EBIT flat as good mail and parcel volumes as well as price increases were offset by factor cost increases DHL EBIT growth held back by FX effects and EBIT weakness in Forwarding. Strong EBIT and margin increase in Express Lower financial result due to positive one-time effect in Q Lower taxes reflect estimated full year tax rate of 19% Net Profit up ~1% yoy as better EBIT and tax rate offset lower financial result PAGE 23

24 FREE CASH FLOW Q Q1 with expected seasonal pattern 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 Net Capex Operating Cash Flow mainly reflects yearly civil servant pension payment (EUR 535m) as well as usual Q1 working capital build-up Cash-out for capex strongly up yoy due to expected catch-up on spending for capex booked in Q FFO/Debt at 33.7% (year-end 2013: 34.4%) Net M&A 18 0 Net Interest Free Cash Flow PAGE 24

25 NET DEBT (-)/LIQUIDITY (+) Civil servant pension payment (EUR 535m) the main reason for usual seasonal increase in net debt Net debt (Dec 31, 2013) OCF before change in W/C Changes in W/C Net Capex Other effects Net Debt (Mar 31, 2014) PAGE 25

26 MOVEMENTS IN NET PENSION PROVISION in EURm Total Defined Benefit Obligation EUR 14,797m Total Defined Benefit Obligation EUR 15,399m Highlights Net pension provision rose primarily as a result of declining discount rates. Plan assets Plan assets rose as returns were above calculated interest income Dec. 31, 2013 Mar Germany 3.75% 3.50% Net Pension Provision UK 4.50% 4.25% Other 3.48% 3.27% Dec 31, 2013 Mar 31, 2014 Total 3.94% 3.70% PAGE 26

27 STABLE CAPITAL INTENSITY EXPECTED Gross Capex / Sales ratio - Group & by division 6,0% Gross Capex intensity average 5,0% EXPRESS ~4% 4,0% 3,0% GROUP ~3% 2,0% PeP ~3% 1,0% 0,0% SUPPLY CHAIN FORW. FREIGHT ~2% ~1% EXPRESS GROUP PeP SUPPLY CHAIN DGF PAGE 27

28 2013 DIVIDEND RECOMMENDATION: DIVIDEND INCREASE OF 14% Dividend Proposal of EUR 0.80 per share EUR % EUR % EUR % EUR ) 49% 60% 40% Net profit growth driven by operating performance, better financial result and lower tax rate We will propose a dividend of EUR 0.80 to the AGM on May 27, 2014, i.e. dividend payments to DPDHL shareholders on May 28, 2014 of EUR 967m Underlying Payout Ratio 1) ) Adjusted for Postbank effects as well as non-recurring items 2) Proposal to AGM 2013 Adjusted for major non-recurring items this reflects a payout ratio of 49%: in line with our dividend policy target payout ratio of 40 60% PAGE 28

29 OPERATING CASH FLOW DEVELOPMENT Strong EBIT growth converted into even stronger OCF increase Major drivers: EBIT Change in Provisions Change in WC OCF EUR m 3, ,000 1, ,000 Declining cash-outs (utilization), mainly due to restructuring provisions tailing off Some volatility from timing effects and economic cycle, but overall low WC intensity -2, ) ) 1) Adjusted for non-recurring items PAGE 29

30 FREE CASH FLOW DEVELOPMENT Turnaround in FCF generation lays base for further improvement Major drivers: OCF Net Capex Net Cash from M&A FCF EUR m 2, , ,500 1) ) ) Adjusted for non-recurring items PAGE 30

31 PROFITABILITY IMPROVEMENT SEES FURTHER PROGRESS BUT STILL MORE WORK TO BE DONE 2013 shows expected margin acceleration in Express Margin improvement >100bps in 2013 driven by: Increasing core TDI share in product mix Efficiency gains and scale effects in ground and air 7.1% 7.8% 8.7% 7.8% 1) 8.9% Margin stable as cost containment made up for: Weak volume environment Increase in NFE costs 2.8% 2.9% 3.3% 3.3% Margin slightly up, reflecting: Benefits from internal optimization programs and new contracts Weak economic environment, esp. in Europe One-off effects net out over the full year 2.1% 2) FY % FY % FY % FY ) EXPRESS FY2012 margin excl. EUR 113m one-off items from VAT, restructuring provision release and disposal gain in Q ) FY2010 margins excl. non-recurring items (restructuring) PAGE 31

32 STRUCTURAL TREND EMERGING MARKETS INTACT AS DEVELOPING MARKETS POSTING ABOVE-AVERAGE GROWTH Emerging Markets drive growth across DHL Divisions Express Forwarding Supply Chain Revenue 1) : EUR bn CAGR % 12.3 Revenue 1) : EUR bn CAGR % 10.6 Revenue 1) : EUR bn CAGR % % 24% +9% +14% 16% 32% 14% 26% +14% +9% 17% 28% 7% 7% +12% +17% 12% 9% Global TDI leadership with key strengths in growth markets Global No. 1 in Air freight, No. 2 in Ocean freight Market leader in contract logistics in Asia and Latin America Latin America, Middle East, Africa Asia Pacific 1) Based on external 3rd party revenue, region according to customer invoice PAGE 32

33 Focus. Connect. Grow. POST, E-COMMERCE & PARCEL PAGE 33

34 PeP PEP SOLID VOLUME DEVELOPMENT Post Volumes (in m pieces) Business Highlights Q1 13 Q1 14 Parcel Germany (yoy) Volume Revenue Volume increase in Post products reflects +0.6 working days Positive development in Mail Communication, supported by SEPA introduction Increase in addressed Dialogue Marketing volumes Continued growth in Parcel Germany Q % +6.5% PAGE 34

35 PeP PEP DIVISIONAL RESULTS Q EUR m Q Q Chg. Revenue 3,815 3, % EBIT % Operating Cash Flow % Capex % Revenue increase driven by stamp price increase and positive volume developments EBIT flat yoy due to rising factor costs - notably 3.1% yoy wage increase - as well as higher costs related to Parcel infrastructure investments Cash flow up 15.4% supported by working capital development Capex below previous years level due to timing differences PAGE 35

36 ASSET SHIFTS FROM DHL TO PeP RESTATEMENTS Asset shifts (EUR 60m EBIT FY 2013) as well as change in IFRS 10/11 reflected in restated 2013 numbers: Revenue Q 1 13 rep. restatement asset shift DHL to PeP restatement IFRS 10/11 Q1 13 rest. EBIT Q 1 13 rep. restatement asset shift DHL to PeP restatement IFRS 10/11 Q1 13 rest. Group 13, ,403 Group PeP 3, ,816 PeP Express 3, ,813 DGF 3, ,610 SC 3, ,472 Express DGF SC CC/Other /Consolid ation CC/Other /Consolid ation GOLDMAN SACHS BUSINESS SERVICES CONFERENCE MARTIN ZIEGENBALG PAGE 36

37 MAIL: PROPOSED LETTER PRICING REGULATION NEW PRICE CAP FORMULA REVISED TO CPI-0.2% Revised price cap regime offering more potential to partially offset factor cost inflation Proposed price cap of Federal Network Agency 1) Formula: x-factor reduced from 0.6 to 0.2% Regulation valid until Dec 31, 2018 Allowing potential average price increase of 1.6% on Jan 1, ) Directly impacted Mail revenues of EUR 3.3bn 3) 1) Federal Network Agency = Bundesnetzagentur; CPI = German Consumer Price Index 2) 1.6% = 1.8% inflation rate minus 0.2% x-factor; based on arithmetic average of the monthly CPI values for reference period from July June 2013: 1.6% price increase applicable based on weighted average across the relevant Mail product portfolio as per price-cap regulation; 3) 2012 revenues affected subject to price-cap regime PAGE 37

38 OVERALL UNCHANGED VOLUME TRENDS IN GERMANY Volume development in bn items Mail Communication Overall volumes in Mail Germany declined at an average rate of only 1.8% through Strategy 2015 Mail Communication benefitted from discontinuation of product Infobrief in 2013 Parcel Germany in bn items Dialogue Marketing volumes continue to be under pressure Dialogue Marketing Parcel Germany continues to show strong development. Market growth rates should come down slightly (expected CAGR ~6%) Mail Germany LONDON 24 JUNE 2014 PAGE 38

39 WORKING DAYS GERMANY Q Q H Q M Q H FY PAGE 39

40 Focus. Connect. Grow. EXPRESS LONDON 24 JUNE 2014 PAGE 40

41 EXPRESS: STRONG TDI GROWTH CONTINUED Time Definite International (TDI) Revenues per day in EUR m Business Highlights 32.6 Time Definite International (TDI) Shipments per day 000s Q1 13 Q Strong TDI shipment performance supported by continued growth in all regions. Highest TDI shipment per day growth rates in Asia Pacific (+11.3%), followed by MEA (+11.0%) and the Americas (+9.3%) while Europe (+3.7%) saw slightly slower growth reflecting active yield management TDI Revenue per day growth outpacing volume growth driven by increase in weight and higher average yield Better product mix, higher network utilization and process improvements drive strong margin growth Q1 13 Q1 14 PAGE 41

42 EXPRESS DIVISIONAL RESULTS Q EUR m Q Q Chg. Revenue 2,813 2, % EBIT 1) % Operating Cash Flow % Capex % Revenues up 2.3% as strong volume growth is partly offset by negative FX effects. Organic growth was +8.1% EBIT up 14.1% yoy as result of TDI volume growth, increased efficiency in aviation and ground operations as well as indirect costs management. EBIT margin very strong at 9.6%. Strong operating cash flow reflects increased EBIT, lower cash out from utilization of provisions and good working capital development Capex lower than last year due to phasing 1) Q incl. EUR 12m positive effect from disposal gain PAGE 42

43 FOCUS. DHL EXPRESS Continue successful FOCUS strategy 2009 Revenue distribution 2013 Revenue distribution Q Revenue distribution post asset shift 11% 12% 2% 13% 14% 5% 58% 4% 9% 5% 8% 3% 12% 70% 74% TDI TDD DDI DDD ACS / Other LONDON 24 JUNE 2014 PAGE 43

44 FOCUS. DHL EXPRESS Further operating margin improvement to be driven by operating leverage and further process optimization Air fleet replacement to improve efficiencies Virtual airline mixing long and short term commitments Stable InterCon Fleet meeting future requirements Replacement of non core with core volume Division cooperation (DHL Forwarding as air capacity customer) Capacity mgmt. with focus on trade lane imbalances Aviation Network Ground Operations Standardized Processes Shelved Vehicles Route Design Work Methods Direct Load Facilities Network Efficiency LONDON 24 JUNE 2014 PAGE 44

45 MARKET POSITION IN TDI Market share expansion continues across all regions Americas [7,352 m ] 1% 3% 16% 50% 30% MEA [330 m ] Europe [6,813 m ] 12% FedEx DHL UPS 10% UPS 41% DHL TNT 14% Global [21,983 m ] TNT FedEx 13% DHL Others 23% Others 7% 32% FedEx UPS 21% TNT Asia Pacific [7,487 m ] Others 27% 29% DHL TNT 49% FedEx 3% UPS 9% Others 10% 23% DHL 40% FedEx 6% 10% UPS TNT 21% Others Source: MI study 2012, annual reports and desk research AM: AR, BR, CA, CL, CO, CR, MX, PA, VE, US; EU: AT, BE, CH, CZ, DE, DK, ES, FR, IL, IT, NL, NO, PL, RU, SE, TR, UK; MEA: AE, ZA ; AP: AU, CN, HK, ID, IN, JP, KR, MY, NZ, SG, TH, TW, VN PAGE 45

46 BALANCED, VIRTUAL AIRLINE BUSINESS MODEL INCREASES FLEXIBILITY Asset Intensity Capacity Commitment 22% 52% 26% Cost Position Flexibility 1) Commercial Air Linehaul 1) 0-90 Days (incl. CAL) Days Fixed PAGE 46

47 AIR CAPACITY SALES (ACS) 4 DIFFERENT PRODUCT OFFERINGS Selling air cargo space purely helps to offset aviation costs and is not a TDI product sold by the core sales team; DHL Global Forwarding (DGF) is the main customer 1 Block Space Agreement, guaranteed air cargo product Express TDI core product, capacity based on average utilization, adjusted on a daily basis Air cargo guaranteed, a set amount of the Total Spare Capacity guaranteed for priority traffic & key customers 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 Total Spare Capacity (TSC), average capacity not utilised by Block Space or TDI Core on a planned basis. To be sold by air cargo product More than ACS 500,000 bookings per year For DGF we improved from no. 8 in 2010 to the no. 3 supplier in 2012 DGF is the biggest customer from DHL Aviation PAGE 47

48 Focus. Connect. Grow. FORWARDING, FREIGHT LONDON 24 JUNE 2014 PAGE 48

49 GLOBAL FORWARDING, FREIGHT: SOME VOLUME IMPROVEMENT Air Freight 000s Tons Business Highlights % 933 Q1 13 Q1 14 Ocean Freight 000s TEU 1) Air Freight volumes flat with improvement towards end of quarter Ocean Freight volumes increasing yoy by 4.7% as new customer wins start to have an impact NFE implementation advancing as planned Q1 13 Q1 14 1)Twenty Foot Equivalent Unit PAGE 49

50 GLOBAL FORWARDING, FREIGHT DIVISIONAL RESULTS Q EUR m Q Q Chg. Revenue 3,610 3, % Gross Profit % EBIT % Operating Cash Flow n.a. Capex % Revenue down yoy due to FX effects. Organic revenue growth of +2.5% Gross profit below last year mainly due to decline in Air freight EBIT down yoy reflecting combination of planned increase in NFE costs and lower GP margin Negative operating cash flow reflects lower EBIT and higher working capital levels Capex spend up yoy due to NFE PAGE 50

51 MAXIMIZED PROFITABILITY: GP ON PRODUCT LEVEL REFLECTS OUR SIZE ADVANTAGE AND PRODUCT PORTFOLIO Gross Profit margin 2013 (in %, Air Freight) 25.4% DGF comparable 1) 20.1% DGF 25.2% Gross Profit margin 2013 (in %, Ocean Freight) 21.7% 19.3% DGF comparable 1) DGF 19.6% 21.9% 20.8% 20.7% 17.7% Performance benchmarking on product level is impacted by differences in accounting key DGF competitors allocate value added services to AFR or OFR DGF has chosen to account for VAS separately under category called Others. This allows to measure true performance on product level When relevant VAS (customs, handling, cartage) are allocated to AFR & OFR to improve comparability, DGF s GP margin is in line with peers GP margin in AFR benefits from DGF s large scale, while OFR reflects its share of uncontrolled volumes 1) Including value-added services; Note: GP margin absolute level not fully comparable due to different revenue recognition principles across competitors Source: Official company publications PAGE 51

52 FORWARDING: EXECUTING OUR PLANNED TRANSFORMATION UPDATE ON NEW FORWARDING ENVIRONMENT (NFE) Changing the future of FORWARDING Modular state-of-the-art IT platform Standardized processes on a global scale Centralized back office support (Global Service Centers) We have a clear vision More customer intimacy Improved end-to-end transparency Increased productivity and implementation is on track Functionality: pilot country indicates new process landscape will deliver expected improvements Timing: in line with plans Costs: lower than expected in 2013, mainly based on savings from project mgmt PAGE 52

53 Focus. Connect. Grow. SUPPLY CHAIN LONDON 24 JUNE 2014 PAGE 53

54 SUPPLY CHAIN: ORDER INTAKE New signings, EUR m 1) Q Q Q Revenue by Sector Q Williams Lea Others Energy 5% Retail 9% 24% Automotive 3% 10% Business Highlights Lower level of new signings in Q1 following several high quarters Selective approach to new business signings as incremental margin improvement remains top priority Revenue growth excluding FX effects strongest in emerging markets at 8.8% Emerging markets contribute one third of new business wins Technology 11% 19% 19% Life Sciences & Consumer 1) Annualized revenue Healthcare PAGE 54

55 SUPPLY CHAIN DIVISIONAL RESULTS Q EUR m Q Q Chg. Revenue 3,472 3, % EBIT 1) % Operating Cash Flow % Capex % Revenue up by 1.0% held back by FX and disposal effects. Organic revenue up by 6.7% mostly driven by Consumer and Retail sector business in Americas as well as APMEA EBIT flat reflecting slow growth in Europe and implementation costs for new contracts Operating cash flow decline reflects higher working capital levels Capex increase mainly directed to investments into new customer contracts in Americas and Europe 1) Q incl. EUR -12m effect from customer bankruptcy PAGE 55

56 FOCUS. CC/OTHER COSTS CC / Other cost, as % of revenue CC / Other cost structure, ,8% 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 LONDON 24 JUNE 2014 PAGE 56

57 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. LONDON 24 JUNE 2014 PAGE 57

58 INVESTOR RELATIONS CONTACTS Martin Ziegenbalg, Head of Investor Relations Robert Schneider Sebastian Slania Sarah Bowman Daniel Stengel Christian Rottler PAGE 58