Annual General Meeting 2006

Transcription

1 Annual General Meeting 2006

2 Status Deutsche Post World Net Yesterday (2005) - Most successful year in Company history Today (2006) - Major challenges Tomorrow (2009) - Exceptional opportunities in globalization on the platform as world market leader Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 2

3 Status Deutsche Post World Net Yesterday (2005) - Most successful year in Company history Today (2006) - Major challenges Tomorrow (2009) - Exceptional opportunities in globalization on the platform as world market leader Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 3

4 Deutsche Post World Net Now No. 1 in logistics worldwide Turnaround International expansion No. 1 logistics provider worldwide Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 4

5 2005 STAR successfully concluded By focusing on costs and integration, we have exceeded the 1.4 billion earnings contribution target STAR financial impact In milion 1, Q Total EBIT contribution: billion 2005 Ziel: EBIT Effekt von mindestens 1,4 Mrd Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q mil. 439 mil. 583 mil. Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 5

6 2005 DPWN s best-ever year in EUR billion Change in % Revenue Thereof international revenue 47.7% 49.7 Profit from operating activities (EBIT) Consolidated Net income Earnings per share Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 6

7 MAIL Stable revenue : 12.9 billion (+ 1%) EBIT remains at high level: 2.0 billion (-2.0%) Increasing substitution Stronger competition in Germany Quality leadership Cost reduction and cost flexibilization Further internationalization Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 7

8 EXPRESS Slight revenue increase: 18 billion (+1%) EBIT below expectations - without goodwill amortization USA: 445 million (+19%) - with goodwill amortization USA: 11 million (-91%) Asia and emerging markets: double-digit growth USA: Results significantly below expectations Europe: Satisfactory development Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 8

9 LOGISTICS Significant revenue increase: 7.9 billion (+17%) Strong EBIT increase: 315 million (+73%) Acquisition Exel No. 1 worldwide in air freight, in ocean freight and contract logistics 10-year contract Karstadt/Quelle logistics Globalization and outsourcing potential as major growth drivers Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 9

10 2005 FINANCIAL SERVICES Revenue stable: 7.3 billion (-1%) EBIT increase: 790 million (+11%) Significant business growth: current accounts, savings, mortgage lending, pensions Acquisition BHW Purchase of 850 Deutsche Post retail outlets Leading financial services provider for private customers in Germany Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 10

11 DPWN supports crisis regions with disaster response teams Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 11

12 2005 Share price development % % + 21% Share price (indexed to DPWN) Januar Februar März April Mai Juni Juli August September Oktober November Dezember DPWN Postbank DAX 12/31/04 12/30/05 Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 12

13 2005 Dividend increased again 0,80 0,70 0, % 0,70 Dividend per share in 0,50 0,40 0,30 0,20 0,27 0,37 0,40 0,44 0,50 0,10 0, * * Based on result before one-off effect Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 13

14 Shareholder structure today Free float exceeds 50% in 2005 for the first time Free float 44.0% 44,0% 58,4% 58.3% KfW 48,8% 48.7% 41.7% 41,6% Fed. govt. 7.3% 7,3% May 2005 May Bund KfW Streubesitz Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 14

15 Status Deutsche Post World Net Yesterday (2005) - Most successful year in Company history Today (2006) - Major challenges Tomorrow (2009) - Exceptional opportunities in globalization on the platform as world market leader Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 15

16 2006 Five challenges : liberalization of mail sector 2. Setting up and securing Express USA with simultaneous loss reduction 3. Integrating Exel and BHW with the goal of significantly improving profits 4. Growth through globalization 5. Organic revenue growth through Company-wide First Choice program Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 16

17 2006 Our forecast for the fiscal year Revenue EBIT DPWN Group over 60 bil. at least 3.7 bil. MAIL slight growth stable at 2 bil. EXPRESS single-digit growth unchanged 450 mil. LOGISTICS over 18 bil. ca. 500 mil. FINANCIAL SERVICES slight growth at least 900 mil. Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 17

18 : Challenges in the mail area Risks and opportunities Competitors have already gained market share through liberalization Expiration of exclusive license in Germany on January 1, 2008 Liberalization only in European harmony Opportunities in the international mail market, particularly Europe and for value-added services Corporate strategies Quality leadership Cost flexibilization and productivity increase Expansion of international mail and value-added services business Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 18

19 2006 Global presence Mail Countries Employees Global Mail Value-added services - Germany Cooperation with USPS Los Angeles Mexico City Chicago Toronto Newark Miami London Utrecht Frankfurt Dubai - Williams Lea International Tokyo Hong Kong Singapore Joint venture with Cooperation with Buenos Aires Sydney Main domestic mail centers International mail centers Williams Lea Value-Added Services Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 19

20 DHL Express USA Market position USA - No. 1 in Europe, No.1 in Asia, No. 3 in the USA - Imperative USA: worldwide customers, worldwide trade flows, worldwide network - All three product areas: International, air domestic, ground-based Start 2005: Revenue growth and earnings improvement - End 2005: Decline in quality, revenue and earnings amid the integrating of two existing air hubs into one (Wilmington, Ohio) - Financial impacts continue to be felt Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 20

21 Significance of DHL Express USA for the Group Main pillar in the USA: - an indispensable pillar in a global express network Consciousness in market entry: - Major integration task - Drawn-out process in the face of strong competition - Must be in it for the long haul Highly attractive market - Largest market in the world - High returns DHL Express business model with good returns Set-backs in 2005: no strategy change and increased efforts Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 21

22 EXPRESS USA and Logistics USA Express USA Revenue: 3.8 billion Employees: 19 thous. High losses Strategy: Strong No. 3, be in it it for the long haul Logistics USA Revenue: 3.1 billion Employees: 22 thous. Good profitability Strategy: Expand No. 1 position through strong organic growth Seattle Portland San Francisco Los Angeles Santa Fe Denver Austin Wilmington Dallas Ohio Fort Myers New York Fort Lauderdale DHL Express - main gateways DHL Logistics Main Locations Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 22

23 2006 Integration of Exel and BHW on track Exel Integration going according to plan Implementation phase launched Management levels staffed, from senior management to country management (54% Exel, 46% DPWN) Projects for achieving synergies identified Only a few customers have exercised their right to contract cancellation 12/31/06: Integration largely finalized BHW Integration going according to plan Implementation phase launched Management levels staffed Core processes defined Brand: Postbank as lead brand BHW as special brand for mortgage savings, mortgage financing, real estate 12/31/06: Integration largely finalized Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 23

24 2006 and beyond: Increasing globalization Total world trade: ~ USD 9,000 billion Intra-North America Intra-Europe 2, Intra-Asia 1, Intra-Rest of World 1) 164 Trade flows 2004 in US$ billion Source: WTO International Trade Statistics ) Rest of World consists of South and Central America, CIS, Africa and the Middle East Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 24

25 2006 and beyond: DPWN with best platform for globalization USA No. 3 Europe No. 1 Emerging Markets No. 1 Asia-Pacific No Over 60 billion revenue Over 500,000 employees of which, 260,000 outside Germany In 220 countries No. 1 No. 1 No. 1 Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 25

26 First Choice DPWN as first choice Turnaround International expansion No. 1 logistics provider worldwide On the way to being first choice for customers worldwide Targets I. To be the first choice for our customers worldwide in the rapidly-growing global logistics market II. To motivate our 500,000 employees, enabling them to increase quality and productivity to world-class levels III. To increase revenue organically and increase EBIT to over 5 billion euros by 2009 Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 26

27 Status Deutsche Post World Net Yesterday (2005) - Most successful year in Company history Today (2006) - Major challenges Tomorrow (2009) - Exceptional opportunities in globalization on the platform as world market leader Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 27

28 Medium-term Group forecast for 2009 Financial target for 2009 billion Group 3.76 min. 5 MAIL 2.03 risk 10-20% EXPRESS 0.45* min. 1 LOGISTICS 0.32 min. 1 FINANCIAL SERVICES 0.79 min. 1 * EBIT before goodwill amortization Annual General Meeting 2006 Deutsche Post AG Cologne May 10, 2006 Page 28

29 Annual General Meeting 2006