39 million households 82 mail centres 3 million business customers 33 parcel centres 2 to 3 million retail outlet customers per working day

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1 The Segments > > Facts & figures Facts and figures We are Europe's largest postal company, delivering some 70 million letters every working day in Germany. We offer all types of products and services to both private and business customers, ranging from standard letters and merchandise to special services such as cash on delivery and registered mail. We also offer mail and communication solutions through direct links to more than 140 countries across the globe. Key figures - - Revenue m 13,684 of which Mail Communication m 5,820 Dialogue Marketing m 2,678 Press Services m 819 Parcel Germany m 2,574 Retail Outlets m 806 Global Mail m 1,679 Pension Service m 98 Consolidation/Other m -790 EBIT before non-recurring items m 1,412 EBIT m 1,383 Return on sales 1) % 10.1 Operating cash flow m 1,148 Number of employees 2) - 146,021 1) EBIT/revenue. 2) Average FTE as at 31 December Key facts 2009 Customers in Germany Network in Germany 39 million households 82 mail centres 3 million business customers 33 parcel centres 2 to 3 million retail outlet customers per working day ~ 2,500 Packstations - ~ 1,000 Paketboxes - ~ 17,000 retail outlets and point of sales - 70 million letters per working day million parcels per working day 2009 Deutsche Post DHL - Investors' Factbook 2010 Page 34 of 93

2 The Segments > > Structure & services Structure & Services The Division is divided into seven sub-divisions and offers our clients full service for all aspects of mailing business. Structure and Services of the Division Business units Products Services Mail Communication Dialogue Marketing Mail products Special services Franking services (incl. online) Philately Advertising mail Tailored end-to-end solutions Special services Offers standard postal services for private and business customers, such as standard letter and merchandise delivery. Provides special services such as cash-ondelivery and registered mail. Offers three options for franking mail items (conventional postage stamp, internet postage stamp and fully computer-based solutions). Over and above the basic products it develops tailor-made solutions for business. Provides advertising services to business customers from the initial planning to the execution of a campaign. Press Services Parcel Germany Global Mail Retail Outlets Pension Service Distribution of newspapers and magazines Special services Parcel products Special services Packstations Import and export of mail Cross-border mail Domestic mail services in other countries Special services Deutsche Post retail outlets Partner outlets Postservice outlets Data administration Payments Offers specialised logistics solutions for the commercial transport and delivery of magazines and newspapers, trade publications, newsletters and corporate publications for customers and employees. Offers all parcel deliveries from, within and to Germany for private and business customers, including such innovative services as online franking, Packstation (automatic delivery machines) and Paketbox (post box for parcels). Handles all mail flows between countries on a global scale, particularly with a focus on imports into and exports from Germany, Europe and the US. Distribution channel for the Group Legal changes to pensions calculations Keeps the pensioner database permanently up-to-date via the internet as well as via personal contact External service provider for over 230,000 Riester agreements Deutsche Post DHL - Investors' Factbook 2010 Page 35 of 93

3 The Segments > > Strategy Strategy Full liberalisation of the German mail market came into effect on 1 January is actively consolidating its position as the top provider of mail and parcel services in Germany: "The Postal Service for Germany (Die Post für Deutschland)". In addition opportunities in liberalised markets outside Germany continue to be evaluated. We have three strategic approaches aimed at meeting the challenges of our business, both today and in the future. 1. Securing our core business We cut costs wherever possible and sensible, and enhance our business by launching new products and perpetuating strong customer relationships. We also retain the high quality of our services whilst protecting the environment. Ideally, we search for solutions that meet several goals at once: a new generation of machines in our mail centres, for instance, not only raises the level of automation and thus quality but also lowers production costs and carbon (CO2) emissions. Proximity to our customers is important to us. We operate the largest network by far of fixed-location retail outlets in Germany, consisting of some 17,000 outlets and sales points. We are expanding our partnerships with retailers, and we offer fast and easy online access to our mail and parcel services. Over the next three years, we will expand our network of around 2,500 Packstations by another 150 machines. 2. Making our network more flexible To ensure that the earnings contribution of our mail business remains stable in the future as well, we need to fundamentally change our network to make the costs more flexible. In 2009, we tested procedures for enabling us to respond to fluctuating or declining volumes without sacrificing quality. During the summer holiday period, we combined carrier routes, relocated mail sorting to neighbouring mail centres and downsized our overnight airmail network. We will repeat those procedures that proved effective as necessary. Moreover, we plan to expand our parcel network and render it more flexible in the interests of our customers. 3. Growing in digital markets We are taking advantage of our expertise in physical communications to offer competent electronic communications. The internet is already facilitating customer access to our services. They can calculate and purchase postage and also locate retail outlets and Packstations online and by mobile telephone. In addition, starting in 2010 we will begin offering the letter on the internet, a binding, confidential and reliable form of written electronic communication. We intend to continue participating in the growing internet advertising market. We already offer small and medium-sized enterprises a platform for local services at as well as the option of calculating costs and placing advertisements in a variety of media using our easy-to-use Werbemanager (advertising manager). In our parcel business, we are developing solutions for internet sales. Customers can go to for easy, secure and transparent online purchasing and payment. Parcel recipients receive advance notifications of when their parcels will arrive. In the future, they will even be able to choose where and when they wish to receive their parcels. Deutsche Post DHL - Investors' Factbook 2010 Page 36 of 93

4 The Segments > > Market Shares > Mail Communication Market Shares Mail Communication Our mail business focuses on Germany, where the mail market was fully liberalised at the start of Since then, competition has become more intense. In addition, the domestic mail market is shrinking because electronic communication is increasingly replacing paper-based communication. The economic crisis acted to intensify this trend. In 2009, the market decreased by 3.1% to around 6.3 billion (previous year: 6.5 billion). We held our share of the market at 87.2% thanks to our high quality. Domestic mail communication market, 2009 Market volume: 6.3 billion Source: company estimate. Deutsche Post DHL - Investors' Factbook 2010 Page 37 of 93

5 The Segments > > Market Shares > Dialogue Marketing Market Shares Dialogue Marketing The German market for dialogue marketing comprises advertising mail along with telephone and marketing. In 2009 the market shrank by 5.5% to a volume of 19.3 billion. Companies sharply reduced advertising expenditure in the face of the economic crisis, especially mail-order companies and financial service providers. We have maintained our share of 13.4% in this highly fragmented market. Domestic dialogue marketing market, 2009 Market volume: 19.3 billion Source: company estimate. Deutsche Post DHL - Investors' Factbook 2010 Page 38 of 93

6 The Segments > > Market Shares > Press Services Market Shares Press Services According to a study carried out by Simon-Kucher & Partners, the German press services market had a total volume of 17.0 billion items in 2009, a decline of 4.5% on the prior year. The circulation and weight of newspapers and magazines has decreased because fewer advertisements were placed. Our competitors in this market are primarily the companies that deliver regional daily newspapers. Although the overall market shrank, we held our share at 11.4%. Domestic press services market, 2009 Market volume: 17.0 billion items Source: study by Simon-Kucher and Partners. Deutsche Post DHL - Investors' Factbook 2010 Page 39 of 93

7 The Segments > > Market Shares > Parcel Germany Market Shares Parcel Germany In 2009, volumes in the German parcel market declined by approximately 2.7% to around 6.3 billion. This market is highly competitive, comprising several well-positioned suppliers such as DPD, UPS, GLS and Hermes. For years now, the parcel business has benefited from online sales, which saw another double-digit increase in 2009 despite the economic crisis. Whilst private demand remained robust, albeit with closer attention being paid to prices, the business-tobusiness market continued to decline. Traditional mail-order companies are really suffering, as shown by the insolvency of Quelle GmbH. Despite this difficult environment, we increased our share in the German parcel market to 39%. Domestic parcel market, 2009 Market volume: 6.3 billion Source: company estimate. Deutsche Post DHL - Investors' Factbook 2010 Page 40 of 93

8 The Segments > > Market Shares > Global Mail Market Shares Global Mail The global market volume for outbound cross-border mail was approximately 7 billion in Business in 2009 was shaped by the global recession and a tougher competitive environment. We lost market share due to our decision to focus strictly on earnings and therefore to cut ties with unprofitable customers. We expect a total market share of 14.5% for Cross-border mail market, 2009 (outbound) Market volume: 7 billion 1) 1) This figure cannot be compared with the prioryear figure because the compiling method has changed. Source: company estimates. Deutsche Post DHL - Investors' Factbook 2010 Page 41 of 93

9 The Segments > > Volumes Volumes of the business products Mail Communication mail items (millions) 2008 adjusted Business customer letters 6,857 6,663 Private customer letters 1,328 1,292 Total 8,185 7, Dialogue Marketing mail items (millions) Addressed advertising mail 6,912 6,323 Unaddressed advertising mail 1) 4,940 4,580 Total 11,852 10,903 1) Prior-year figures adjusted to reflect portfolio changes. Parcel Germany parcels (millions) Business customer parcels 1) Private customer parcels Total ) Including intra-group sales. Mail International mail items (millions) Global Mail 7,301 6,654 Deutsche Post DHL - Investors' Factbook 2010 Page 42 of 93

10 The Segments > > Regulation Regulation - status quo in Europe Since 1997 the German mail market has been gradually opened to competition - ahead of the liberalisation roadmap of the European Union. The German mail market is fully open for private operators since 2008 as it is in five other EU Member States. Most of the EU Member States will liberalise their markets in 2011, with 11 smaller countries being granted an exemption until In % of the EU postal market will be fully open to competition. Liberalisation roadmap in Europe and in Germany Deutsche Post DHL - Investors' Factbook 2010 Page 43 of 93

11 The Segments > > Regulation > Overview Regulation - Overview in Germany In Germany operators need a license in order to provide certain postal services. Currently, licenses are held by operators with 750 of them actually being used. Overview Germany Deutsche Post DHL - Investors' Factbook 2010 Page 44 of 93

12 The Segments > > Regulation > Universal services Regulation - Universal services in Germany Universal service according to the German regulatory framework is a minimum set of postal services, provided in specified quality throughout Germany at affordable prices. Universal services Germany Product range Performance/Quality standards Tariff regulation Network Letter mail < 2kg incl. direct mail Insured items, registered letters, cash-on-delivery items Addressed parcels < 20kg Press items Express delivery items Inland ad cross-border services Delivery targets: letters D+1: 80% D+2: 95% parcels D+2: 80% Delivery/collection frequency: 6 working days Affordable price for all letter mail: < real price level at 31 December 1997 < 12,000 outlets In municipalities > 2,000 inhabitants: minimum one outlet In municipalities > 4,000 inhabitants: outlet accessible at a distance of max. 2km In rural districts: at least one outlet for each area of 80km² In residential areas: one letter box accessible at a distance of max. 1km Self-commitment of Deutsche Post: > 108,000 letter boxes outlet network obligations also for residential areas without municipality status Deutsche Post DHL - Investors' Factbook 2010 Page 45 of 93

13 The Segments > > Regulation > Tariff regulation procedures Regulation - Tariff regulation procedures Under the German regulatory framework tariffs of a market dominant operator are subject to price control. Tariff regulation procedures Deutsche Post DHL - Investors' Factbook 2010 Page 46 of 93

14 The Segments > > Regulation > The price cap formula Excursus: Regulatory pricing - The price cap formula Since January 1, 2003, the so-called "price-cap method" has been used in Germany to determine mail delivery prices. In 2008 the regulatory authority (Bundesnetzagentur) has set new framework conditions for the price-capregime. Under the current regime, the Deutshe Post DHL's mail services, which are subject to tariff approval under price-cap-regulation (see "Regulation of Postal Markets"), are grouped in one basket. To determine the allowable rates the average weighted price of this basket is applied as the starting basis (according to the principle of the Laspeyres Index). Based on this price level, The Bundesnetzagentur uses the price cap formula to determine allowable prices for the following period: The left side of the formula represents the weighted price trend versus the preceding period. The allowed rate of change is determined by two factors: the Inflation Rate (I) of Germany's Federal Statistical Office (for reasons of practicality, the value of the next to last year is applied) and the expected productivity growth rate (X). For the years , a uniform productivity growth rate of x=1.8% was applied. In simplified terms, the formula is: Letter price level in t < Letter price level in t-1*(1+inflation Rate in t-2-1.8%) Deutsche Post DHL - Investors' Factbook 2010 Page 47 of 93