DPDHL GROUP AT A GLANCE

Transcription

1 Investor Relations

2 DPDHL GROUP AT A GLANCE Network businesses asset intensive Brokerage & Outsourcing asset light Group revenues EUR 60.4bn EBIT EUR 3.741bn ~500k employees >220 countries/ territories 2020 EBIT targets: Group: EUR >5bn; PeP: EUR ~1.7bn ; DHL : EUR ~3.7bn Products Geographies Market Share Post - ecommerce- Parcel USO Provider for letter products in Germany. Parcel operations in Germany, Europe and selected international markets Germany Europe Americas Asia Pacific 62% business letters Germany 45% parcels Germany DHL Express Core product TDI (Time- Definite International): premium cross- border parcels and document delivery >220 countries and territories Global No 1 in TDI 38% market share No 1 EU, MEA and Asia No 3 US DHL Global Forwarding, Freight Brokerage of transport services in Air, Ocean and Road freight >150 countries and territories No 1 in air freight No 2 in ocean freight No 2 in road freight DHL Supply Chain Customized, outsourced logistics solutions through full value chain >50 countries and territories No 1 globally 6.2% market share INVESTOR RELATIONS JUNE 2018 PAGE 2

3 DPDHL GROUP: PRODUCTS AND SOLUTIONS PORTFOLIO COVERING FULL GLOBAL LOGISTICS VALUE CHAIN Our sector expertise Our sector-specific expertise spans across multiple sectors and specialty areas, offering you tailored solutions that best match your industry s logistics requirements. With dedicated teams of experts, we ensure that we remain at the forefront of sector developments and constantly adapt our portfolio to your needs Automotive Chemicals Consumer Energy Engineering and manufacturing Financial services Life sciences and healthcare Public sector Retail Technology Our green expertise DHL s GoGreen program helps you and us reduce the environmental impact of doing business across the world. Our GoGreen Solutions portfolio of transport efficient and environmentally optimized logistics solutions supports you to quantify and improve your carbon footprint. It reduces waste, meets producer responsibilities and helps you move to a more Circular Economy INVESTOR RELATIONS JUNE 2018 PAGE 3

4 DPDHL GROUP: DIVISIONAL OVERVIEW Revenue distribution, DPDHL Group EBIT distribution, DPDHL Group Capex distribution, DPDHL Group PeP Express DGFF DSC Corporate Center PeP Express DGFF DSC Corporate Center PeP Express DGFF DSC Corporate Center INVESTOR RELATIONS JUNE 2018 PAGE 4

5 DPDHL GROUP: GEOGRAPHIC OVERVIEW Revenue by region DPDHL Group Staff by region (FTE) DPDHL Group Staff by Division (FTE) DPDHL Group Germany Europe Ex Germany Americas Germany Europe ex Germany Americas PeP Express DGFF Asia Pacific Asia Pacific SC Other Others Corporate Center INVESTOR RELATIONS JUNE 2018 PAGE 5

6 DPDHL GROUP: BOARD OF MANAGEMENT Melanie Kreis Dr. Frank Appel Thomas Ogilvie CFO DPDHL GROUP Member: Oct. 14 Appointed: June 22 CEO DPDHL GROUP Member since Nov.2002 CEO since Feb Appointed until Oct HUMAN RESOURCES CORPORATE INCUBATIONS Member: Sept Appointed: Aug Dr. Jürgen Frank Gerdes Appel Ken Allen Tim Scharwath John Gilbert Post - ecommerce - Parcel EXPRESS Global Forwarding, Freight SUPPLY CHAIN Interim CEO Member: Feb Appointed: July 2020 Member: June 2017 Appointed: May 2020 Member: March 2014 Appointed: March 2022 INVESTOR RELATIONS JUNE 2018 PAGE 6

7 DPDHL GROUP: STRATEGY 2020 SUMMARY Introduced at 2014 CMD + + FOCUS CONNECT GROW We focus on what has made us successful 1. Logistics as our core 2. Committed to the needs of our stakeholders & our planet 3. A family of divisions to further expand margins. We connect across the organization 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 & service excellence. We expend in new segments 1. Leader in ecommerce related logistics 2. Accelerate footprint shift towards emerging markets 3. Tap new market opportunities for organic expansion to achieve sustainable abovemarket growth Supported by our unchanged finance policy INVESTOR RELATIONS JUNE 2018 PAGE 7

8 DPDHL GROUP: STRUCTURAL MARKET TRENDS As shown at 2014 CMD INVESTOR RELATIONS JUNE 2018 PAGE 8

9 2018 & 2020 GUIDANCE EBIT, EUR bn excl. restructuring costs 2020 Incl. IFSR 16 PeP ~0.6 ~ 1.1 ~1.7 DHL ~3.0 ~3.0 ~3.7 Corporate Functions ~ ~ ~ Group ~3.2 ~3.7 >5.0 FY 2018: Free Cash Flow: > EUR 1.0bn (excl. debt-financed Express intercontinental fleet renewal) Tax rate: ~18% Gross Capex (excl. leases): ~ EUR 2.5bn plus ~ EUR 0.2bn for debt-financed Express intercontinental fleet renewal INVESTOR RELATIONS JUNE 2018 PAGE 9

10 DPDHL GROUP: SHAREHOLDER STRUCTURE VERTRAULICH As per 31 Dec, 2017 KfW Banken- Gruppe 20.7% 11.1% Institutional Investors 68.2% Institutional Investors by Region Great Britain 13.8% USA 15.8% Germany 12.0% Others 26.6% Retail Investors 10

11 Post - ecommerce Parcel (PeP) 1 #1 Europe s largest post and parcel provider INVESTOR RELATIONS JUNE 2018 PAGE 11

12 PeP: REVENUE MIX AND MAIN ASSUMPTIONS Post Brand: Deutsche Post Post product segments: 2017 PeP revenue: EUR 18,168m Parcel and ecommerce Brand: DHL Parcel operations: Mail Communication Dialogue Marketing Other (incl. Press services, retail outlets) Post 54% Parcel 46% Parcel Germany Parcel Europe DHL ecommerce (Parcel Outside Europe) Volume expectation: - German letter decline: ~ -2-3% 1) 1) Volume expectation: - German Parcel growth: +5-7% - International Parcel growth: >+8% 1) p.a. until 2020 PeP is a growing business as Parcel growth outstrips Post decline INVESTOR RELATIONS JUNE 2018 PAGE 12

13 PeP: EBIT HISTORY AND OUTLOOK 2017 PeP EBIT: EUR 1,502m PeP revenue & EBIT, in EUR m 20, ,000 Parcel Revenue Post Revenue PeP EBIT 2020 EBIT guidance: EUR 1.7bn , , Since 2012 low point, EBIT up EUR >400m, all while investing in Parcel expansion INVESTOR RELATIONS JUNE 2018 PAGE 13

14 PeP: GERMAN POST AND PARCEL NETWORK 82 Mail sorting centers 34 Parcel sorting centers Hannover Hamburg Rostock Berlin Köln Frankfurt Stuttgart Nürnberg 50,000 parcels/h 40,000 parcels/h 32,000 parcels/h 28,000 parcels/h München Highly efficient and automated sorting capability enables high quality Mail & Parcel delivery INVESTOR RELATIONS JUNE 2018 PAGE 14

15 PeP: POST PRODUCTS, MARKET STRUCTURES AND REGULATION Post revenue FY17: EUR 9.7bn The Mail Company for Germany USO (Universal Service Offering) Provider in Germany Mail Communication (MC) Regulation & Pricing Mostly Regulated price cap = CPI +5.8% Last regulated price increase: +7.5% in 2016 Mail Communication EUR 6.4bn - Standard letter products - Domestic and Out-/Inbound Germany - Includes digital letter product E-POST Market structure, Business customer mail Deutsche Post Competition 62% 38% Dialogue Marketing EUR 2.3bn Other: EUR 1.0bn Dialogue Marketing (DM) - Advertisement mailings & campaigns - Digital & physical Other: - Press & Pension Services, Retail Outlets - Streetscooter Mostly Unregulated No formal price setting, potentially ex-post price controls Market structure, German advertising market Deutsche Post Competition 8% 92% INVESTOR RELATIONS JUNE 2018 PAGE 15

16 PeP: DHL Parcel Germany maintains sustainable growth momentum DHL Parcel Germany, volume growth, yoy DHL Parcel Germany, market share development 9.8% 9.8% 7.4% 7.0% 8.7% 9.3% 7.8% 39% +6pp 45% market growth expectation: 5-7% 20% Comp 1 Comp 2 Comp 3 Comp 4 High delivery convenience Broad choice of recipient services for consumers: doorstep delivery, Parcel lockers (Packstation), Click & Collect (Parcel shops), Private Parcel box (Paketkasten) Highest density of customer access points for delivery & returns ~5.3m parcels per working day in 2017 enabled by efficient, automated network ~85% next day delivery & ~98% second day delivery 34 fully automated parcel sorting centers, with average sorting capacity of ~30,000/hour >240 local delivery depots and >75 mechanized depots Capacity increased by >50% versus 2012 Leading service proposition translates into sustained increase in volume and market share INVESTOR RELATIONS JUNE 2018 PAGE 16

17 PeP: DHL PARCEL EUROPE DHL Parcel Europe: cross-border and domestic Parcel delivery across Europe 26 countries One network Own presence With partners DHL Parcel Connect One product Objective: Market leader in cross-border Europe, top 1-3 player in domestic operations INVESTOR RELATIONS JUNE 2018 PAGE 17

18 PeP: DHL ecommerce PARCEL SERVICES OUTSIDE EUROPE DHL ecommerce capabilities based on three core pillars Global, multi-site efulfillment US, Mexico, Columbia, India, Hong Kong, Australia, Germany Domestic B2C delivery and returns US, Chile, India, Thailand, Malaysia, Vietnam International day-definite delivery and returns Currently servicing 220 countries from 11 origin countries: US, Canada, Israel, Hong Kong, Singapore, China, India, Australia, Japan, New Zealand, Thailand, Malaysia DHL Parcel offering e-commerce logistics in all global e-commerce gravity centers INVESTOR RELATIONS JUNE 2018 PAGE 18

19 PEP: CONTINUOUS INNOVATION ALONG THE WHOLE VALUE CHAIN, DRIVING STRUCTURAL E-COMMERCE GROWTH Production / sorting (e.g. 50k/hour ; MechZB) Network orchestration (e.g. routing, data analytics) Sustainable delivery (e.g. Streetscooter) e-commerce growth Penetration of new business fields (e.g. grocery marketplace & delivery) INVESTOR RELATIONS JUNE 2018 Recipient solutions (e.g. trunk delivery, DHL4ALL) Last mile automation (e.g. Postbot) PAGE 19

20 DHL EXPRESS 1 #1 Europe s largest post and parcel provider 1 #1 International express delivery INVESTOR RELATIONS JUNE 2018 PAGE 20

21 DHL EXPRESS: FOCUS ON TDI DHL Express Core Product Continue successful FOCUS strategy TDI (Time Definite International) - The premium segment within Express Industry 2009 Revenue distribution 2017 Revenue distribution Time Definite = Dedicated delivery at a scheduled time of day International = Cross-Border Shipment (intra- or between continents) TDI: requires dense and broad international network TDD: Time Definite Domestic DDI: Day Definite International DDD: Day Definite Domestic ACS: Air Capacity Sales (re-sale of spare capacity on dedicated fleet to optimize utilization, not sold by core Express sales teams) 13% 4% 12% 10% 61% 0% 3% 7% 12% 78% TDI TDD DDI DDD ACS / Other Content examples: Bank Docs, Contracts, Certificates, Invoices, Vaccines, Spare parts, Fashion, Passports, Shipping Docs INVESTOR RELATIONS JUNE 2018 PAGE 21

22 EXPRESS: FOR OUR INTERNATIONAL NETWORK, X-BORDER B2C IS A PROFITABLE GROWTH DRIVER Portion of B2C TDI shipments has increased over time We grow B2C profitably because 90% of the KPIs perfectly suit our network 1) 1) >10% >20% SpD WpS Volume growth drives better utilization of existing network Lower weight per shipment Our TDI product is attractive to e-tailers because we offer Unparalleled global door-to-door network Fast customs clearance Flexible delivery options Highest service quality & customer service 1) Indications based on medium to large B2C customers of top 30 countries RpK First mile Hub sort Airlift Last mile Higher RpK related to lower WpS More pieces per stop at pickup Better utilization of existing infrastructure, with high degree of conveyables Better utilization of existing capacity, with lower WpS being advantageous Residential delivery to private households X-Border e-commerce has developed into an important TDI vertical and profitable growth driver INVESTOR RELATIONS JUNE 2018 PAGE 22

23 DHL EXPRESS: THE MOST INTERNATIONAL COMPANY IN THE WORLD Global network covering 220 countries and territories First-mover in International Express, market entrance date by country (examples): Canada 1977 USA 1969 Mexico 1976 Colombia 1978 Peru 1981 Brazil 1978 Russia 1984 Norway 1977 Sweden 1978 Germany 1977 France 1975 Turkey 1981 Spain 1979 China 1980 Japan 1972 Saudi Arabia 1976 Kuwait 1980 Bahrain 1976 Hong Kong 1973 Taiwan 1973 Nigeria 1979 UAE 1977 India 1980 Vietnam 1988 Kenia 1980 Malaysia 1973 Singapore 1972 Angola 1984 South Africa 1978 INVESTOR RELATIONS JUNE 2018 PAGE 23

24 DHL EXPRESS: GLOBAL TDI MARKET LEADER TDI leadership across all regions outside the Americas Americas [EUR 8.2bn ] <1% 4% 20% +2% 43% 33% Europe [EUR 7.1bn] 11% 10% 44% 11% +3% 24% Asia Pacific [EUR 8.0bn] 17% 4% 49% 11% 19% +5% +x% %pt change vs MI study Global [EUR 24.0bn] DHL TNT UPS FedEx Others Country base: 11% 5% 38% EU: AM: AT, CZ, DE, ES, FR, IT, NL, PL, RO, RU, SE, TR, UK AR, BR, CA, CL, CO, MX, PA, US; 22% AP: AU, CN, HK, IN, JP, KR, SG, TW 24% GLOBAL: EU+AM+AP+(AE+SA+ZA) Source: Market Intelligence 2017, annual reports and desk research INVESTOR RELATIONS JUNE 2018 PAGE 24 +4%

25 DHL EXPRESS: VIRTUAL AIRLINE MODEL Virtual Airline Approx. 500 airports and 22 major hubs connected through 1. Dedicated air: >250 aircraft with 17 partner airlines on >600 daily flights 2. Purchased air: >300 commercial airlines with >1,800 daily flights InterCon Network 36 dedicated intercont aircraft Europe North America Asia Pacific Latin America Middle East & Africa Regional Networks 86 dedicated aircraft INVESTOR RELATIONS JUNE 2018 PAGE 25

26 DHL EXPRESS: FINANCIAL TRACK RECORD TDI volume growth (yoy) EBIT (EUR m) EBIT margin Average: 8.9% CAGR 12% 1, % 9.4% 8.4% 7.8% 8.7% 7.6% 9.9% ,108 1,391 1,260 1,133 1,548 EBIT Margin 1) 10% 11.5% 4.4% ) Rolling 4 quarters INVESTOR RELATIONS JUNE 2018 PAGE 26

27 DHL GLOBAL FORWARDING, FREIGHT (DGFF) 1 #1 Europe s largest postal provider 1 #1 International express delivery 1 #1Global air freight volumes 2 #2 Global sea freight volumes 2 #2 European road freight volumes INVESTOR RELATIONS JUNE 2018 PAGE 27

28 DGFF: PRODUCTS & SOLUTIONS PORTFOLIO DHL AIR PRIORITY DHL AIR CONNECT DHL AIR ECONOMY DHL AIR CHARTER DHL AIR THERMONET Revenue Split by Product Line Air Freight Road Freight 32% 30% DHL ASIALINE DHL ASIACONNECT DHL AFRICALINE DHL AFRICACONNECT Others 15% 24% Ocean Freight CUSTOMS BROKERAGE RAIL FREIGHT SAME DAY WAREHOUSING INSURANCE SECURITY DHL OCEAN DIRECT FCL DHL OCEAN CONNECT CONTAINER MANAGEMENT DHL OCEAN CHARTER DHL OCEAN THERMONET INVESTOR RELATIONS JUNE 2018 PAGE 28

29 DHL GLOBAL FORWARDING: SECTOR MIX Share of total in % Air Freight volume 2016 (in k tons) Engineering & Manifacturing Technology Ocean Freight volume 2016 (in k TEU) Share of total in % 7% 1% 5% 6%2% 5% 27% Life Science Health Care Consumer Automotive Retail 7% 7% 3% 8% 1% 25% 10% 12% 25% Chemicals Others Energy 9% 9% 11% 19% Public Services INVESTOR RELATIONS JUNE 2018 PAGE 29

30 DHL GLOBAL FORWARDING, FREIGHT: MARKET POSITIONS Strong market position in all three product segments Air Freight volume 2016 (exports only) (in K tons) Ocean Freight volume 2016 (in K TEU) European Road Freight market share 2016 (in %, based on revenue) ,3 2,2 1,8 1,8 DGF Kuehne & Nagel DB Schenker Panalpina Kuehne & Nagel DGF DB Schenker Panalpina DB Schenker DHL Freight Dachser DSV Source: Company publications/ estimates; MI Freight 2017 INVESTOR RELATIONS JUNE 2018 PAGE 30

31 DGF: WE ARE MARKET LEADERS IN SIZE AND SCOPE Europe Americas ~8,200 Employees 361) Countries 3952) Locations (offices +operational sites ~8,600 Employees 491) Countries 2032) Locations (offices +operational sites Asia Pacific Middle East &Africa ~1,900 Employees 591) Countries 472) Locations (offices +operational sites DGF Present ~8,809 Employees 371) Countries 2562) Locations (offices +operational sites Other DPDHL operations Regional Head Office Present in more thanchile 190 countries Uruguay ~30,000 highly qualified employees >2.0m AFR export tons transported3) >3.0m TEUs transported3) New Zealand 1) Including agent countries; 2) Estimate as of August 2016, this is subject to change depending on business operating needs and environment 3) As per FY 2017 INVESTOR RELATIONS JUNE 2018 PAGE 31

32 DGFF: THE LIFECYCLE OF A SHIPMENT IS A COMPLEX PROCESS Forwarding is more than brokerage of transport, it is managing all the steps along the way Plan route & organize shipment Take control of goods from customer Create documents for export compliance & customs Manage transport to port/airport Quotation Process Goods to be shipped Manage loading & export process Ensure goods are shipped Billing & payments Transport to warehouse or final destination Manage documents for import compliance & customs process Accept delivery at port/airport Ensure shipment stays on track INVESTOR RELATIONS JUNE 2018 PAGE 32

33 DGFF: GROSS PROFIT AND GROSS PROFIT/EBIT CONVERSION in EUR m FY 2017 Total revenues Revenues Global Forwarding t/o Airfreight t/o Oceanfreight t/o others Revenues Freight Consolidation -151 Total gross profit t/o Airfreight 863 t/o Oceanfreight 662 t/o others 865 t/o Freight Reported EBIT 297 t/o Forwarding 206 t/o Freight 91 DGF Gross Profit conversion and EBIT margin 17,1% 16,9% 10,3% 9,7% 8,6% 3,9% 3,9% 2,3% 5,1% 1,2% 2,4% 2,0% GP-to-EBIT conversion EBIT margin INVESTOR RELATIONS JUNE 2018 PAGE 33

34 SIMPLIFY: STRATEGIC FRAMEWORK AND PRIORITIES INVESTOR RELATIONS JUNE 2018 PAGE 34

35 DHL SUPPLY CHAIN (DSC) 1 #1 Europe s largest postal provider 1 #1 International express delivery 1 #1 Global air freight volumes 2 #2 Global sea freight volumes 2 #2 European road freight volumes 1 #1 Global leader in contract logistics INVESTOR RELATIONS JUNE 2018 PAGE 35

36 DHL SUPPLY CHAIN: OUTSOURCED CONTRACT LOGISTICS MARKET Contract logistics market, 2016: EUR 202billion 2) Top 10 players Growth in total addressable market 1) driven by outsourcing trend DSC 6.2% XPO Logistics 2.4% Kuehne & Nagel 2.1% Hitachi 1.8% CEVA 1.6% SNCF Geodis 1.4% Neovia 1.3% DB Schenker 1.2% UPS SCS 1.2% Ryder 0.7% 1) DHL projection based on forecasts from IHS Global Insight and Transport Intelligence; suppliers with global footprint Outsourced Contract Logistics In house logistics 2) Source: Transport Intelligence; Revenue figures are estimates based upon gross revenue with external customers; pro-forma excluding WLT exchange rates as at 2016 INVESTOR RELATIONS JUNE 2018 A Fragmented Market Top 10 players represent less than 20% of total estimated market volume 1, (15%) , (17%) 1, CAGR 6% 3% EUR bn PAGE 36

37 DHL SUPPLY CHAIN: #1 IN GLOBAL CONTRACT LOGISTICS Europe ~66,000 Employees 21 Countries Americas ~50,000 Employees 13 Countries Middle East &Africa ~6,000 Employees 9 Countries Asia Pacific ~25,000 Employees 14 Countries DHL Supply Chain presence Other DPDHL Group operations Largest warehousing provider with >25m sqm* Present in more than 50 countries Global revenue leader with EUR 14bn in 2016 ~1,500 customers across the globe * Including owned, leased and operated space INVESTOR RELATIONS JUNE 2018 PAGE 37

38 DHL SUPPLY CHAIN: SOLUTIONS OVERVIEW Offering Customized Solutions Across the Entire Supply Chain Revenue by Service Area FY 2017 Value Added Services 20% Transportation 33% 47% Warehousing INVESTOR RELATIONS JUNE 2018 PAGE 38

39 DHL SUPPLY CHAIN: SECTOR REVENUE SPLIT AND ADDED VALUE Revenue by sector FY ) Engineering & Manufacturing Life Sciences & Healthcare 12% Others 5% 6% 27% Retail Direct-to-Market Technology 13% 15% 23% Consumer Omnichannel & e-fulfillment Automotive Service Logistics Inbound to Manufacturing 1) Pro-forma excluding Williams Lea Tag INVESTOR RELATIONS JUNE 2018 PAGE 39

40 DHL SUPPLY CHAIN: A POWERHOUSE IN E-COMMERCE LOGISTICS e-commerce for Supply Chain is more than B2C delivery DSC serves B2C and B2B e-commerce channels Omnichannel fulfillment is standard practice Besides pure e-tailers, traditional enterprise is transitioning rapidly to e-commerce Vendor-neutral e-fulfillment with DHL ecommerce New international business model meets high customer demand IT We roadmap are the contract re-defined logistics in early partner stages for of Strategy Bricks AND 2020 Clicks, across all sectors INVESTOR RELATIONS JUNE 2018 PAGE 40

41 DSC: E-COMMERCE LOGISTICS OPPORTUNITIES - E-FULFILLMENT DHL Vendor-neutral E-fulfillment Seamless Logistics Management Quality Fulfillment, Worldwide Transactional pricing Fast and Flexible Shipping Customer Benefits Significant overall cost savings through partnership for fulfillment and shipping Quality improvement, control over branding, packaging and inventory data Decreased shipping time through best-in-class supply chain technology and fulfillment Using the full range of our cross-divisional experience and assets allows us to differentiate in e-fulfillment and provide unique customer benefits INVESTOR RELATIONS JUNE 2018 PAGE 41

42 DHL SUPPLY CHAIN: FINANCIAL TRACK RECORD Indexed to 100 Indexed development of operating KPIs CAGR FY % EBIT EUR 555m EBIT Margin 3.9% 100 3% 1% New Biz Wins1) Revenue EUR 1.5bn EUR 14bn ) Annualized revenue Focus on selective business wins and contract lifecycles supported by operating standardisation drive sustained growth in EBIT and EBIT margin INVESTOR RELATIONS JUNE 2018 PAGE 42