Deutsche Bank Roadshow Frankfurt Lawrence Rosen, CFO 3 April PDF Free Download

Deutsche Bank Roadshow Frankfurt Lawrence Rosen, CFO 3 April 2014

OUR NEXT HORIZON: ACCELERATING ORGANIC GROWTH Inorganic expansion Unlocking our potential Accelerating organic expansion Create the base 1990 1997 1998 2008 2009 2015 2014 2020 DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 2

RECAP ON MAJOR FUNDAMENTAL STRATEGIC CHOICES Defend and expand position in Germany Stabilized MAIL EBIT above EUR 1bn Offset of mail revenue decline through parcel growth Long-haul international trade EXPRESS: Focus on Time Definite International strategy FORWARDING: Exploit global market share and growth Logistics outsourcing SUPPLY CHAIN: Take advantage of global outsourcing trend Increase margin through contract lifecycle discipline DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 3

A LOOK BACK: ALONG OUR THREE BOTTOM LINES Strong progress along all dimensions in EUR bn 0.2 Investment of Choice 1.8 2.4 2.7 2.861 2009 2010 2011 2012 2013 BUSINESS PERFORMANCE Reported EBIT GoGreen C 2 efficiency: +18% (2013) (cp. to base year 2007) Provider of Choice 68 79 Employer of Choice 58 70 1) Employee Opinion Survey 2009 2012 CUSTOMER SATISFACTION e.g. DHL EXPRESS 2009 2013 1) EOS RESULTS Active Leadership DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 4

STRUCTURAL MARKET 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 DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 5

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. DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 6

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 1. One global team 2. Certified specialists for everything we do 3. Connected approach in operations, commercial, green solutions and shared services 1. Leader in ecommerce related logistics 2. Accelerate footprint shift towards emerging markets 3. Tap new market opportunities for organic expansion to further expand margins. to achieve quality leadership & service excellence. to achieve sustainable above-market growth. DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 7

WE FOCUS ON WHAT HAS MADE US SUCCESSFUL TO FURTHER EXPAND MARGINS. DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 8

FOCUS. We focus on what has made us successful The rationale behind FOCUS. 1 2 Logistics as our core Committed to the needs of our stakeholders & our planet Logistics continues to be an attractive industry offering high growth and returns. We focus on success criteria which are relevant for our stakeholders, have proven effective and will remain so in the future. 3 A family of divisions We want each division to be excellent in its focus areas. to further expand margins. DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 9

FOCUS. 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 2011 2020, 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 DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 10

FOCUS. GERMAN POSTAL BUSINESS We remain committed to our letter business in Germany The Post for Germany Deutsche Post business and brand remain a key pillar for the Group The investments and efforts of the past years are paying off Continued focus on optimizing our cost position still needed MAIL division is ready for new opportunities in ecommerce & Parcel, also outside of Germany MAIL Division becomes Post - ecommerce - Parcel Division (PeP) DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 11

FOCUS. COMMITTED TO THE NEEDS OF OUR STAKEHOLDERS Customer Satisfaction (Scale from 0 100) 70 78 2010 70 79 min. 80 group-wide Consistently >80 2013 2015 2020 Provider of Choice GoGreen C 2 efficiency improvement: +30% (by 2020) EBIT (in EUR bn) 0.23 2009 Investment of Choice 2.86 2013 3.35 3.55 2015 >8% CAGR 2020 Employer of Choice Employee Engagement & Active Leadership (% favorable votes) 58 61 2009 70 72 2013 min. 80 2015 >80 2020 DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 12

FOCUS. A FAMILY OF DIVISIONS One global team One team: Professional, diverse, and in tune with market needs Lean Corporate Center Focus on governance/ownership tasks Stand alone divisions Connected by a common management approach Customer Solutions & Innovation Selective Group-wide shared functions and services Joint key account management and focused shared service unit DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 13

FOCUS. DHL EXPRESS Focus on our three bottom lines creates a virtuous cycle Investment of Choice in EUR m 1,133-790 2009 2013 EBIT Provider of Choice Employer of Choice 79 89 63 80 2010 2013 CUSTOMER PROMISE 2009 2013 ACTIVE LEADERSHIP DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 14

FOCUS. DHL EXPRESS Continue successful FOCUS strategy 2009 Revenue distribution 2013 Revenue distribution Business transitions as per January 1, 2014 to further sharpen TDI focus 11% 12% 14% 5% 12% 58% 4% 9% 5% 70% DD Belgium DD Netherlands DD Luxemburg DD Poland Blue Dart PeP TDI TDD DDI DDD ACS / Other DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 15

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 DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 Route Design Work Methods Direct Load Facilities Network Efficiency PAGE 16

FOCUS. DHL FORWARDING, FREIGHT Improvement in a volatile environment Investment of Choice in EUR m 174 483 2009 2013 EBIT Provider of Choice Employer of Choice 71 73 62 75 2009 2013 CUSTOMER SATISFACTION 2009 2013 ACTIVE LEADERSHIP DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 17

FOCUS. DHL FORWARDING, FREIGHT Transforming in a challenging environment 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 H1 2015 DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 18

FOCUS. DHL FORWARDING, FREIGHT Strategic priorities: On its journey from Good to Great Sustainable Growth Become forwarding leader in fast growth markets Sector focus Accelerate Value Added Services Maximized Profitability Complete and fully leverage NFE Strategic Roadmap DHL Freight Customer & Ops Excell. Customer Service Improvement Leverage growth of online platforms 1 Best Team Obtain best-in-industry competence & best talent management DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 19

FOCUS. DHL SUPPLY CHAIN Steady improvement with increasing profitability Investment of Choice in EUR m -216 441 2009 2013 EBIT Provider of Choice Employer of Choice 69 71 57 69 2010 2013 CUSTOMER SATISFACTION 2009 2013 ACTIVE LEADERSHIP DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 20

FOCUS. DHL SUPPLY CHAIN BENEFITING FROM KEY MARKET TRENDS 1 Continued Outsourcing New signings, EUR bn 1) 2 Emergence of a global market 1.1 1.3 1.2 1.5 3 Value-Added Solutions 2010 2011 2012 2013 1) Annualized revenue DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 21

FOCUS. 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% 12.0 CAGR +4% 14.2 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 2009 2013 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 DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 22

FOCUS. CC/OTHER COSTS CC / Other cost, as % of revenue CC / Other cost structure, 2014e 0,8% 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 2009 2010 2011 2012 2013 2020 60% Core Corporate Center costs DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 23

WE CONNECT ACROSS THE ORGANIZATION TO ACHIEVE QUALITY LEADERSHIP AND SERVICE EXCELLENCE. DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 24

CONNECT. We connect across the organization The rationale behind CONNECT. 1 A global team A highly professional and diverse management group is essential in order to meet the rising bar. 2 3 Certified specialists for everything we do Connected approach in operations, commercial, green solutions and shared services Best-in-class team to achieve quality leadership and improve leadership. An approach leveraging our global platform to create value as a Group (i.e. support and connections but no integration) to achieve quality leadership and service excellence. DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 25

CONNECT. PROVEN CIS PROGRAM EXTENDED GROUP-WIDE Facts & Figures DHL CIS Program Integrating continuous process optimization Certified Specialist Trainings Targets Pioneer DHL Express Group implementation 100,000 Certified International Specialists since Dec. 2011 Delivered in >40 languages by 1,800 DHL Express employees that are trained as facilitators Modular platform for each country and function The First Choice Way becomes part of Certified Combination of : - Class room sessions - On the job training - Specialized application Target state is >80% of all staff trained until 2020 Executives 100% Managers >90% Supervisors & Staff >80% DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 26

CONNECT. LEVERAGE PRE-EMINENT INTERNAL SKILLS Sorting Automation/Robotics Data Analytics Capability building and stronger leverage across Group Obertshausen Parcel site as pilot to enhance expertise Automation agenda with crossdivisional Operations Board to review divisional activities Divisions to drive pilots and applications No conceptual R&D/ only concrete projects Pilots to solve divisional business issues and mine DPDHL data DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 27

CONNECT. LEVERAGE EXCELLENCE IN GREEN LOGISTICS SOLUTIONS Target 2020 C 2 efficiency: +30% 2 Next development level: GoGreen 2.0 GoGreen Solutions 1 Focus today: GoGreen Efficiency Success examples First efficiency target, carbon accounting and controlling in industry Role modeling in alternative fleet Climate-neutral shipping Driving industry standards Make a difference with customers Action areas Commercialize green products and services Focus on optimizing customer supply chains Help customers achieve CO 2 and efficiency aspirations DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 28

WE EXPAND IN NEW SEGMENTS TO ACHIEVE SUSTAINABLE ABOVE-MARKET GROWTH. DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 29

GROW. We expand in new segments The rationale behind GROW. 1 2 3 Leader in ecommerce related logistics Accelerate footprint shift towards emerging markets Tap new market opportunities for organic expansion We want to create value by utilizing our existing capabilities to build new businesses and grow organically. We want to continue being a leader in fast growing markets. We want to serve changing customer needs and tap new sources of growth. to achieve sustainable abovemarket growth. DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 30

GROW. 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 2011 2020e 2.0% Mature USA UK Japan Western Europe 5.4% Emerging China India Brazil South East Asia Source: IHS Global Insight DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 31

GROW. OUR AMBITION FOR THE EMERGING MARKETS Group revenue footprint 78% 70% 22% 30% Today 2013 Target 2020 target Building on our leading market positions in growth regions, 30% emerging market targets is AMBITIOUS BUT REALISTIC Mature Markets Emerging Markets DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 32

GROW. LEADER IN ecommerce RELATED LOGISTICS Ecommerce trend is a structural growth trend for logistics businesses Domestic Parcel business driving strong ecommerce growth in Germany International Domestic and cross-border Parcel activities already in DHL portfolio Opportunity to expand ecommerce and Parcel activities internationally MAIL Division becomes Post - ecommerce - Parcel (PeP) Leveraging its two strong brands DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 33

BREAK DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 34

BREAK The Post for Germany and the ecommerce enabler for the world DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 35

GROW. KEY BUILDING BLOCKS OF PeP BUSINESS STRATEGY We are the trusted communications and targetoriented advertising provider online and offline Digital Physical mail Internationalization Diversification Parcel / e-commerce We offer innovative services based on our core competencies We are the leading parcel and ecommerce service provider Our guiding principles: Defend physical mail Enter into the digital world Restructure international business Develop ecommerce to drive parcel Diversify based on core competences DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 36

GROW. OVERALL UNCHANGED VOLUME TRENDS IN GERMANY Volume development in bn items Mail Communication 7.96 2009 7.82 2013 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 0.761 2009 1.026 2013 Dialogue Marketing volumes continue to be under pressure Dialogue Marketing 10.90 9.75 Parcel Germany continues to show strong development. Market growth rates should come down slightly (expected CAGR ~6%) Mail Germany 21.16 19.65 2009 2013 2009 2013 DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 37

GROW. PeP: PERFORMANCE & HIGHLIGHTS STRATEGY 2015 PeP Strategy 2015: We ve put down solid roots for future growth 2009 2010 2011 2012 2013 2014 2015 Investment of Choice EBIT EUR bn Customer satisfaction 1.4 1.1 1.1 1.2 1) 1.2 ~1.2 1.1 93% 93% 95% 96% 95% 95% 95% Employer of Choice Provider of Choice Employee satisfaction 66% 74% 76% 77% 76% 80% 90% 1) excluding VAT impact 151 m DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 38

GROW. STRATEGIC EVOLUTION OF PeP DIVISION 2007 2014 2020 Restructuring Growth Stabilization of the traditional letter mail business and build-up of domestic Parcel operations Defend Germany Domestic mail volume development stabilized e-substitution remains the key challenge long-term E-POST established in the market for digital communication Strategic realignment of Global Mail completed Successful build-up of DHL Paket as innovation and market leader in Germany Appointment of PeP Division as global lead division for ecommerce logistic services! Internationalization of the successful German Parcel Strategy Transfer of domestic parcel businesses in Poland, BeNeLux, Czech Republic and India to PeP Expansion and entries into additional domestic parcel markets in APAC/Americas Stabilisation of classic letter mail operations remains a key challenge Expansion of digital services Increase profitability in Mail Communication Vision: Global no. 1 ecommerce service provider DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 39

GROW. ecommerce ACCELERATION: OPPORTUNITY & THREAT Opportunity Parcel domestic market revenue 2011 2020 Emerging Markets & Logistics companies venturing into ecommerce to support logistics Threat ecommerce companies venturing into logistics to support ecommerce Mature Markets Mainland China Global CAGR 2011 2020: +8% New competitors entering the market DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 40

GROW. NEW MAIL ORG DIVISION STRUCTURE BECOMES FOR Post POST, - ecommerce ECOMMERCE - Parcel & PARCEL Two main businesses, leveraging their existing strong brands Sub-division Post & Sub-division ecommerce & Parcel The Post for Germany Includes Mail Communication E-Post Dialog Marketing Presse Services Export/Import Germany The global ecommerce enabler Includes Germany Europe International Cross-border/Intercontinental Brand power, expertise and resources necessary to meet our ambitious growth targets DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 41

GROW. DHL PAKET 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 DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 42

GROW. ecommerce & PARCEL: SERVICE PORTFOLIO efacilitation efulfillment DELIVERY CROSS-BORDER ecommerce 0 50 10 40 20 30 Marketplaces Marketing services Payment solutions Domestic efulfillment (incl. value added services) In collaboration with DHL SUPPLY CHAIN Multichannel domestic delivery and return 1) International B2C shipping Combined with int l efulfillment & efacilitation services 1) Incl. intra-eu delivery & return DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 43

GROW. SUBDIVISION DHL ECOMMERCE& ecommerce & Parcel 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 Build on existing businesses Global Mail US Blue Dart India Asia 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 DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 44

GROW. OUR ASPIRATION Leader in ecommerce-related logistics Our aspiration 2020 Our assets to get there 1 1 Further grow and maintain No. 1 position in Germany No. 1 for x-border ecommerce services on most attractive international trade lanes Top 3 of domestic B2C delivery and ecommerce services in selected markets Passion to win Love for our customers Great entrepreneurs Strong brands World-class processes Support by family of divisions DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 45

Financial outlook & aspiration DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 46

FINANCIAL PERFORMANCE 2009-2013 Strong increase in Group EBIT 1.8 2.4 2.7 2.861 0.2 2009 2010 2011 2012 2013 in EUR bn Supported by strong EBIT performance in all Divisions 1,391 1,226 2009 2013 1,133-790 2009 2013 483 174 2009 2013 441-216 2009 2013 in EUR m MAIL / PeP EXPRESS FORWARDING,FREIGHT SUPPLY CHAIN Driving turnaround in Free Cash Flow -0.2 0.5 0.7 0.7 1) Adjusted for non-recurring items 2009 2010 2011 2012 2013 1) 2009 2010 2011 2012 2013 DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 47 1) 1.6 in EUR bn

FINANCIAL OUTLOOK AND ASPIRATIONS Further revenue and earnings growth expected Investments to remain at current levels to take full advantage of attractive growth opportunities Free Cash Flow generation to continue positive and increasing Financial policy unchanged DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 48

2020 TARGETS 2015 EBIT targets confirmed, new 2020 targets introduced EBIT 2013 base 1) FY 2015 FY 2020 PeP 2) EUR 1.286bn Min. EUR 1.1bn ~3% CAGR 2013-20 DHL EUR 1.997bn EUR 2.6-2.8bn ~10% CAGR 2013-20 CC/Other EUR -422m ~ EUR 350m < 0.5% of Group revenue Group EUR 2.861bn EUR 3.35-3.55bn >8% CAGR 2013-20 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, 2014 2) Post - ecommerce - Parcel DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 49

MAJOR INVESTMENTS PLANNED FOR 2014 2014 Gross Capex guidance (EUR 1.9bn) Major projects: PeP EXPRESS FORWARDING, FREIGHT Investments into new international Parcel businesses Continuation of Parcel 2012 investment program Network investment, mainly aviation / aircraft Extention Leipzig Hub New Forwarding Environment SUPPLY CHAIN Significant new business wins DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 50

STABLE CAPITAL INTENSITY EXPECTED Gross Capex / Sales ratio - Group & by division 6,0% Gross Capex intensity 2007-13 average 5,0% EXPRESS ~4% 4,0% 3,0% GROUP ~3% 2,0% PeP ~3% 1,0% 0,0% 2007 2008 2009 2010 2011 2012 2013 SUPPLY CHAIN FORW. FREIGHT ~2% ~1% EXPRESS GROUP PeP SUPPLY CHAIN DGF DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 51

NO CHANGE IN M&A STRATEGY Goal Continued focus on organic growth M&A Objectives Bolt-On acquisitions to support strategies and new growth initiatives of divisions Further small disposals where necessary to optimize divisional business portfolios 0-100 -200-300 -400 Recent M&A history 2009 2010 2011 2012 2013 Conclusion No significant increase in M&A spend expected Net cash from M&A Cash-out related to disposal of domestic Express activities DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 52

OPERATING CASH FLOW DEVELOPMENT 2009-2013 Strong EBIT growth converted into even stronger OCF increase Major drivers: EBIT Change in Provisions Change in WC OCF EUR m 3,000 3.000 2.000 2,000 1,000 1.000 0-1.000-1,000 Declining cash-outs (utilization), mainly due to restructuring provisions tailing off Some volatility from timing effects and economic cycle, but overall low WC intensity -2,000-2.000 1) 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 1) 1) Adjusted for non-recurring items DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 53

FREE CASH FLOW DEVELOPMENT 2009-2013 Turnaround in FCF generation lays base for further improvement Major drivers: OCF Net Capex Net Cash from M&A FCF EUR m 2,500 2.500 1,500 1.500 500-500 -1.500-1,500 1) 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 1) 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 1) Adjusted for non-recurring items DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 54

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 DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 55

Recap Strategy 2020 DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 56

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 most customer-centric DEUTSCHE BANK MANAGEMENT ROADSHOW 3 APRIL 2014 PAGE 58