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8/11/2019 DPDHL Commerzbank German Investment Seminar 09012012
1/52
Larry Rosen, CFO
New York, 9-11 January, 2012
Deutsche Post DHL
Commerzbank
-
German Investment Seminar
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EBIT growth of 40% in9M
2011
2011 guidance increasedwith Q3 figures
Major restructuring iscompleted
Taking full benefit ofglobalization and
outsourcing trends
Strategy 2015:
Provider of choice
Employer of choice
Investment of choice
MAIL: stabilization ofEBIT at ~EUR 1bn, keydriver parcel growth
DHL: 1315% EBITCAGR in 201015, keydriver fast growingregions
Organic growth driven bya focused businessportfolio
Leading market positionin key growth regions
Solid liquidity andbalance sheet position
Highlights
Operationalperformance on
track
Clear strategicambitions and targets
Leverage ourgrowth potential
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Mail: strategic levers for EBIT stabilization in place
Mail: strategic levers for EBIT stabilization in place
Performance on track, clear strategic ambition and targets
Performance on track, clear strategic ambition and targets
DHL: strong positioning in structural growth markets
DHL: strong positioning in structural growth markets
Agenda
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Deutsche Post DHL at a Glance
1) Underlying EBIT; 2) Average FTEs FY 2010
The
postal servicefor Germany
Domestic German Mailand Parcel
Sales:
EUR 13,821mn
EBIT 1):
EUR 1,152mn
Empl. 2):
146,365
The
logistics company for the world
International andDomestic Express
Sales:
EUR 11,111mn
EBIT 1):
EUR 785mn
Empl. 2):
88,384
Global Air, Ocean andRoad Freight
Sales:
EUR 14,341mn
EBIT 1):
EUR 390mn
Empl. 2):
41,729
Global SupplyChain
Solutions
Sales:
EUR 13,301mn
EBIT 1):
EUR 274mn
Empl. 2):
131,032
Corporate Center / Other: Sales: EUR 1,302mn; EBIT 1): EUR -395mn; Employees 2): 13,764
2010 key figures
Group: Sales: EUR 51,481mn; EBIT 1): EUR 2,205mn; Employees 2): 421,274
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Improvement in customer satisfaction
Stable or increased overall satisfaction in3/4 of recent surveys
Divisional business developmentprograms set up
Building a track record
of solid andimproving performance
2010 results above increased guidance
Guidance for FY 2011 increased after Q3
figures
Excellent trend in engagement
(Employee Opinion Survey 2010)
79% participation rate (+3% yoy)
Significant improvement in satisfaction for
all KPIs (range of +2% to +8%) yoy
Clear Strategic Ambition
Providerof Choice
Employer of ChoiceInvestment of Choice
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Ongoing growth momentum in Q3 drives strong 9M figures
1) 2010 EBIT included non-recurring items of EUR -302mn, t/o Mail EUR -4mn and DHL EUR -298mn; 2) Attributable to Deutsche Post AG shareholders
Group P&L 9M 2011
EUR mn9M
20109M
2011 Chg.
Revenue 37,610 38,806 3.2%
EBIT 1) 1,310 1,837 40.2%t/o Mail 896 861 -3.9%t/o DHL 716 1,271 77.5%
Financial result 964 -411 NA
Taxes -162 -356 >100%Consolidatednet profit 2) 2,054 988 -51.9%
EPS (in EUR) 1.70 0.82 -51.8%
Reported
revenue
growth affected byadverse fx-effects and divestments. Organicgrowth of +6.0%
EBIT
continues to improve strongly driven bycontinuous growth in our DHL divisions whileMail EBIT is stabilizing
9M 2011 Financial result
was impacted byPostbank effects of
EUR -107mn
comparedto EUR +1,334mn last year
Tax
rate in line with 25% guidance
Consolidated net profit
up by 52%excluding Postbank effects
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Group
DHL divisions
Corp. Center/Other
2011
Above EUR
2.4bn
~
EUR
1.1bn
Above EUR
1.7bn
~
EUR -0.4bn
EBIT guidance: Group EBIT above EUR 2.4bn
Net profit excl. Postbank transactioneffects to improve in line withoperational
performance
Capex not more than EUR 1.6bn
Tax rate of 25%
Restructuring will have a considerablylower influence on operating cash flowthan last year (in 2011 c. EUR 200mncash
outflow)
prev. EUR 2.22.4 bn
prev. EUR 1.01.1 bn
prev. EUR 1.61.7 bn
unchanged
Full-year 2011 Guidance
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Target balance sheet structure is the leading element of our finance strategy
Balance sheetstructure
Dividend policy
Priority for useof excess liquidity
Financial debtportfolio
Target / maintain BBB+ rating
4060% of net profit(cash flow / continuity considered)
2010 dividend up 8.3% to EUR 0.651)
(pay-out of 59%)
1.
Invest in business2.
Fund pensions3.
Increase rating to A-
4.
Special dividend, share buyback
Syndicated bank facilities
Bonds
Fundamental
finance objectives
Reliability
Predictability
Strategic flexibility
Low cost of capital
Clear steeringmetric
1) Proposal to AGM
Overview DPDHL Finance Strategy
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Mail: strategic levers for EBIT stabilization in placeMail: strategic levers for EBIT stabilization in place
Performance on track, clear strategic ambition and targetsPerformance on track, clear strategic ambition and targets
DHL: strong positioning in structural growth marketsDHL: strong positioning in structural growth markets
Agenda
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MAIL: Key Figures
mn units
Parcel volumes
Mail communication volumes
2006
-1.6%
2007 2008 2009 2010
8,380 8,112 8,185 7,955 7,826
CAGR: -1.7%
2006
+4.2%
2007 2008 2009 2010
749 753 773 761 793
CAGR: +1.4%
mn units
mn9M
2010
9M
2011 Chg.
Revenue 10,145 10,223 0.8%
EBIT 1) 896 861 -3.9%
9M 2011
5,750
605
+0.8%
+9.4%
9M 2011
1) Reported EBIT: including non-recurring items of -4mn in 9M 2010
Solid growth in Parcel continues, supportedby gradual capacity enhancements
Stable volume development in MailCommunication so far in 2011
Union agreement on further labor flexibility
Legislator sets new price-cap at CPI
0.6%
Highlights
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Comprehensivepackage forimprovedproductivity andemployee
satisfaction
Long-term union agreement New price-cap formula
Wage negotiations
More headroomfor
future priceincreases
Parcel concept 2012
Investment inservice quality andcapacity increaseto enable futureparcelgrowth
Negotiationsstarted
Agreementexpected inQ1
2012
EBIT stabilization elements being realized
Mail Target: EBIT Stabilization at EUR 1bn
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New flexible model for age-based working solutions
Option to pay proportion of current salary into worktime account
Partial-retirement program supplemented by working-time
accounts and a demographic fundExtension of no compulsory redundancy until 2015
Continued outsourcing
990 parcel-delivery districts handled by sub-contractors
Outsourcing of transportation extended by 1,000 drivers
Agreed salary/working condition changes
4% lower entry wage for new Mail employees
New vacation policies based on company service, not age
Renewal of non-chargeable overtime, work days andshort breaks agreements
Comprehensive package, agreed until 2015
Mail: Long-term Union Agreement
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New price cap regime offering more headroom
Mail: New Price Cap Set at CPI-0.6%
1) Federal Network Agency = Bundesnetzagentur; 2) CPI = German Consumer Price Index
Conclusions for Deutsche Post
No price increase for 2012
Buffer of +1.2% carried over to 2013 (1.8% inflation rateminus 0.6% x-factor)
Postal price cap decision of Federal Network Agency1)
New formula: x-factor reduced from 1.8 to 0.6%
Reference period for relevant CPI 2) broughtforward by six months
Regulation valid until 31 Dec. 2013
Directly impacted Mail revenues of EUR 3.5bn
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Driver: Demographics/Convenience/Cost
Established segments New segments
Online share of total retail spend (by segment, in %)
844
11
20
35
92
< 1
Pharma-
ceuticalsTotal Drugstore
productsFood productsConsumer
electronicsFashion
and shoesMedia (books/
CD/DVD)
Driver: Convenience/Cost
5% market growth until 2020 1)
driven by changing consumerbehavior towards e-commerce
1) Source: Bundesverband des Versandhandels, Gesellschaft fr Konsumforschung
Mail: Growth in German Parcel Market
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Parcel Germany: Strategic Focus
DPDHL only postal organizationworld-wide to offer nation-wide 24/7access
to all shipping needs
13,500
retail outlets
1,000
Parcel Boxes for 24/7 drop-off
2,500
automatic PACK STATION sto
drop-off, frank, or use as
delivery
address
Online Franking of all parcel products
iPhone and Android apps forall
services
To date 2mn registered Packstationcustomers
83% check whether vendor ships toPackstation before purchase
36% increase their online spendafter registration for Packstation
Target group in age segment 2550years with high online affinity
Parcel Germany is shaping eCommerce as the leadingservice
provider
Source: Europisches Handelsinstitut
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Structural volume decline due to e-substitution
Rise in factor cost
Investments in digital services (near-term)
EBIT Headwinds
EBIT Levers
Stabilization
Sufficient elements for EBIT stabilization materializing
Mail Target: EBIT Stabilization at EUR 1bn
Parcel growth
Digital services (medium-/long-term)
New pricing regime
Network flexibility / Productivity improvement
Labor flexibility / Productivity improvement
Increased overhead efficiency
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Mail: strategic levers for EBIT stabilization in placeMail: strategic levers for EBIT stabilization in place
Performance on track, clear strategic ambition and targetsPerformance on track, clear strategic ambition and targets
DHL: strong positioning in structural growth marketsDHL: strong positioning in structural growth markets
Agenda
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Driving double-digit EBIT CAGR in 20102015
Outgrowing underlying markets by 12% p.a.
DHL markets outgrow GDP
Continuous performance improvement
Real GDP Real trade
1.52.0X
2010 2011 2012 2013 2014 2015
EUR 1.45 bnEBIT CAGR
1315%
DHL Serves Structural Growth Markets
Achieve benchmark/sector leadingoperating margins by 2015 orearlier for each DHL unit
~ 89%Air ~ 68%Ocean ~ 78%
~ 7%
Target revenue CAGR. for 20102015
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DHL Footprint Asia
1) 3rd party revenue Asia/Pacific; sum of DHL divisions or respective division
DHL clear No. 1 in Asia
> 60,000 > 30,000 > 10,000 > 20,000Employees
19% 29% 21% 8%(% of total)
7.1bn 3.1bn 2.9bn 1.1bn(in EUR)
Revenues 2010 1)
No. 1 No. 1 No. 1 No. 1Market position
> 500,000 > 86,000 > 300Customers
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15F14F13F12F11F10090807
+4
+2
0
-2
-4
IHS Global InsightEIUIMF
Forecast
Global GDP % growth (real) Levers for cost flexibility
Increased proportion of cost structure madevariable (e.g. temporary labor ininternational
operations)
Optimized mix of owned aircraft, short-term
leases and long-term leases
Discretionary spend (e.g. advertising)
Long-term contracts in Supply Chain, oftenwith agreed minimum volumes
Well prepared for volatile environment
DHL: Economic Outlook and Implications
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EUR mn9M
2010
9M
2011 Chg.
Revenue 8,207 8,644 5.3%
EBIT 1) 273 679 >100%
+9.8%
9M 11
528
9M 10
481
9M 11
30.1
9M 10
26.8
+12.3%
Revenues per day 2)
in EUR mn Shipments per day 000s
Underlying EBIT margin
Time Definite International (TDI)
key trends
Margin increased, second-best in the industry
Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11
Shipment growth even accelerating in Q3
Volume growth again clearly ahead ofcompetition
Further yoy margin improvement asoperating leverage and overall cost disciplineoffset ongoing investments into network,advertising and training
Speed of Yellow
global advertisingcampaign
Highlights
1) Reported EBIT: including non-recurring items of EUR -267mn in 9M 2010;2) Currency translation impacts are eliminated. Hence, 2010 and 2011 data are aggregated with the same currency rate
7.8%+40 bp
7.5%8.3%8.2%7.1%6.9%5.9%
DHL Express: Key Figures
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Shipments
Revenue
34%
DHL Express: Focus on our Core Competence TDI
DHL Express
focus on TDIhas moved the needle
Major domestic withdrawalscontributing to thatproportion
Domestic activity shifted
from mature EU markets togrowth markets in Asia /Pacific and Latin America
Domestic Strategy:
Maintain successful,
profitable businesses, e.g.India Blue Dart, Mexico
Continuous monitoring oflower performingbusinesses
75%61%
Domestic = TDD + DDD International = TDI + DDI
2008 2010
19%
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US Asia> 10%
Europe Asia
> 10%Intra-Asia
> 10%Others
~50%of global DHLTDI shipments
touch Asia
Dynamic growth continues: Double digit volume growth on all majorAsia-related trade lanes
DHL TDI global shipment flow,
by
origin/destination
DHL TDI regional trade lanes,
Q3 2011, yoy volume growth
DHL Express: Asia Market Position
Inbound Asia
Outbound Asia
Intra-
Asia
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DHLExpressGlobalMarket
Share TDI of30%
External Research Underlining TDI Leadership across all regionsoutside the Americas
DHL Express:
Global
Market Positions
in TDI
Asia Pacific [4,316m EUR]EEMEA [360m EUR]
Europe [5,288m EUR] Americas [3,914mEUR]Others
4%DHL
13%
UPS
32%
FedEx
51%
DHL
36%
FedEx
21%
UPS
10%
TNT
6%
Others
27%
Others
18%
TNT
17%
UPS
12% FedEx
6%
DHL
47%
DHL
38%
UPS
23%
TNT
16%
FedEx11%
Others
12%
Source: Market Intelligence 2011 (FY 2010 data, MRSC); Scope: BE, CH, DE, ES, FR, IT, NL, PL, SE, UK, IE; AE, RU, TR, ZA; AU, CN, HK, IN, JP, KR, SG, TW; US, CA, MX, BR
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EUR mn9M
20109M
2011 Chg.
Revenue 10,443 11,108 6.4%
EBIT 1) 252 303 20.2%
Air freight 000s Tons Export Ocean freight 000s TEU 2)
Key volume trends
Gross profit increased
Air freight GP/Tons Export Ocean freight GP/TEU 2)
Positive revenue and profit developmentdespite unfavorable currency effects andvolatile market environment in Q3
As expected slightly weaker volumes due toincreased general market softening andstrong volumes in Q3 2010
Trend towards higher margin levels driven byfavorable buying conditions, profitable
growthapproach and efficient operations
Focus on sector strategy and value-added
services
Highlights
1,802
9M 11
1,823
9M 10
+1.2%-0.2%
9M 11
2,047 2,042
9M 10
9M 11
443
9M 10
414
+6.9% +16.0%
9M 119M 10
238205
DHL Global Forwarding, Freight: Key Figures
1) Reported
EBIT: including
non-recurring
items
of
-6mn in 9M 2010
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Airfreight, weight by origin Seafreight, FCL volume by origin
LATAM
Europe
North America
South Asia -Pac& Africa
North Asia-Pac
MENAT
DHL Forwarding, Freight Reflects Global Flows ofInternational Trade
A global business with strong contributions from emerging markets
Europe
North America
North Asia-Pac
MENATLATAM
South Asia -Pac
& Africa
Other
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China South (7)
China North (32)
Note: ( ) = no. of Branches
= Branch Location
= Sales Office Location
and today in 2011
Shanghai
Suzhou
Shenyang
Tianjin
Ningbo
Dalian
Urumqi
Qingdao
Chengdu
Xian
KunmingXiamen
HangzhouWuhan
Wuxi
Nanjing
ShenzhenGuangzhou Dongguan
Zhongshan Hongkong
Beijing
China South (5)
China North (17)
Presence in 2006
Branch
22
Office
0
Branch
39
Office 26
Note: ( ) = no. of Branches
= Branch Location
= Sales Office Location
DHL Global Forwarding, Freight :Network Expansion in China from 20062011
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InternationalAirfreight
InternationalOcean freight
Industrial Project
Customer
ProgramManagement
CustomsBrokerage
What DGF offered in 2006
DGF is the leading provider in China Domestic airfreight and road freight
Innovative solutions e.g. cross border road freight, multimodal,
rail, connectChina to fast growing neighbors, e.g. ASEAN, CIS
DHL Global Forwarding, Freight: Service Extension Towardsa Comprehensive Portfolio Connecting China and Beyond
Our current service offering in China 2011
TradeFacilitation(IOR/EOR)
Ocean Securewith GPS-
enabled devices
ShippersInsurance
Trade/Fair/ExhibitionLogistics
Chinese DesksAt Overseas
Carbon Report& Offsetting
Offering
InternationalOcean freight
IndustrialProject &
Chartering
InternationalAirfreight
InternationalSupply Chain
CustomsBrokerage
Control TowerManagement/
LLP
DomesticAirfreight
Multimodal-
Rail Segments
Domestic Roadfreight
Multimodal-
Cross-border
Segments
Multimodal-
Air Segments
(SeAir, Rail-Air)
Multimodal-
Land Bridge &
Mini LandBridge
Value addedservice
LogisticsManagement
Services
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1) Reported EBIT: including non-recurring items of EUR -25mn in 9M 2010 and disposal gain on ETS in 9M 2011; 2) incl.Airline Business Solutions
Steady margin improvement
Revenue by sector 9M 2011
7%
7%
17%
26%
Others 2)
9%
Williams Lea
Automotive
Technology 12%
Life Sciences& Healthcare
Consumer 20%
Retail
EUR mn9M
2010
9M2011 Chg.
Revenue 9,559 9,675 1.2%
EBIT 1) 185 289 56.2%
Continuous growth momentum driven byexisting contracts and new business wins
Asia Pacific again posting the highest growth,now representing ~10% of total revenue
New business of around EUR 280mn inannualized revenue signed in Q3 2011(Q3
2010: EUR 200mn). Majority of newsignings in Retail, Consumer, Life Sciences& Healthcare and Automotive
Highlights
DHL Supply Chain: Key Figures
2%
Energy
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InboundTransport
RawMaterials
ProductionFlows
OutboundTransport
ReturnsWare-
housingDistri-
bution
Plan
Laying the foundation for a supply chain
Source
Getting the materials at the time required
Make
Supporting product manufacturing
Store & Customize
Getting it ready to sell
Deliver
Getting it where it needs to be
Return
Bringing it back when its not needed D H L S u p p
l y C h a
i n S e r v
i c e s
~
2/3 of SC sales
End-to-End Supply Chain capability: more than pure warehousing
Outsourcing: Simplify Our Customers Supply Chain
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DHL Supply Chain: Global Sector Focus
Global Sector Focus
By focusing on our six global sectors we are getting closer to ourcustomers, offering sector-specific supply chain solutions
Our Approach
Sector approach implemented andenhanced since several years now;considered as key to success
Dedicated Global Sector teamsestablished to strengthen our approachfor six key industries
Development of sector-specific,innovative solutions, ensuringsustainable competitive advantage forour customers and DHL
Focus on best practice & knowledge
exchange
across regions, DHLDivisions, and with our customers
Energy
Life Sciences& Healthcare
Automotive
TechnologyRetail
Consumer
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Market leader in Asia Pacific
Strongest growing region, currentlygenerating ~10% DHL Supply Chains globalrevenue
> 26,000 employees
700 facilities with total surface of 4 million m 2
14 countries
Following Supply Chains global strategy, thestrategic focus in Asia Pacific depends onlocal market maturity and dynamics:
High growth countries (China, India):Enhance growth organically and throughtargeted, small acquisitions
Immature markets : Consolidation ofcustomer supply chains through integratedend-to-end solutions
Mature markets: Innovative,transformational deals, offering Value
Added Services and leveraging strategicproducts replication program
Strong focus on talent management
Drive footprint growth with build/lease-backagreements
Regional HQSingapore
Regional HQSingapore
DHL Supply Chain is the contract logistics market leader in Asia Pacific and keeps on growing fast
DHL Supply Chain: Asia Pacific Deep Dive
Key Facts Asia Pacific Strategy
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AirlineSolutions
Co-Packing
Technical
Services
Lead LogisticsProvider
E-Fulfillment
33
Our strategic products continue to deliver results and offer innovativesolutions beyond conventional warehousing & distribution
DHL Supply Chain: Strategic products successful in Asia Pacific
Airline solutions are optimizedAbove the Wing
operations .
Services are based upon globallydefined standards
and the supportof a dedicated team
Core Services:
Assembly and delivery of catering trays and other Above the Wingproducts such as In-Flight-Retail & Entertainment
Inventory management, cleaning of equipment andwaste
managementBenefit:
Improved service level along with significant reduction of weight,waste, unused products and hence cost through an optimized end-to-end solution
Based on the success with our AirlineSolution business with British Airways atLondon Heathrow, we furthered our Above-the-Wing
product offering through the newQantas contract in Australia
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Focus on organic profitable growth in structurally growing
markets
Logistics industry driven by growth in global trade
DHL is market leader in Asia and other growth regions
Mail business benefits from strong growth in parcel and digital services
Further margin potential due to operating leverage andefficiency
improvements
2011 guidance increased in November: confident to sustain and
continue our performance improvement in the short- and medium-term
SUMMARY
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Mail: strategic levers for EBIT stabilization in placeMail: strategic levers for EBIT stabilization in place
Performance on track, clear strategic ambition and targetsPerformance on track, clear strategic ambition and targets
DHL: strong positioning in structural growth marketsDHL: strong positioning in structural growth markets
Agenda
AppendixAppendix
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Revenue
kept growing in Q3 despiteongoing adverse effects from FX and
divestments. Organic growth was +5.7%
DHL again posts double-digit EBIT
growth
and margin improvement in allthree
divisions
also contributed to EBIT
growth VATregulation no longer impacts yoy comparison
Q3 2011 Financial result
was impacted byPostbank effects of EUR +26mn comparedto EUR -92mn last year
Consolidated net profit
and EPS
increasereflect underlying EBIT improvement andlower financial costs
Performance improvement accelerating in Q3
1) 2010 EBIT included non-recurring items of EUR +2mn, t/o Mail EUR 0mn and DHL EUR +2mn; 2) Attributable to Deutsche Post AG shareholders
Group P&L Q3 2011
EUR mn
Q3
2010
Q3
2011 Chg.
Revenue 12,799 13,125 2.5%
EBIT 1) 545 646 18.5%t/o Mail 257 302 17.5%
t/o DHL 382 440 15.2%
Financial result -222 -92 58.6%
Taxes -74 -138 86.5%Consolidatednet profit 2) 226 385 70.4%
EPS (in EUR) 0.19 0.32 68.4%
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Strong Operating Cash Flow drives Free Cash Flow improvement
Free Cash Flow Q3 2011
1) Included restructuring cash out of EUR -42mn in Q3 2011 and EUR -76mn in Q3 2010
EUR mnQ3
2010 1)Q3
2011 1)
Cash from operatingactivities before
changesin Working Capital 616 635Changes inWorking
Capital 16 191Net cash from operatingactivities after
changes inWorking Capital 632 826
Net Capex -250 -288
Net M&A -23 -42
Net Interest paid -32 -16
Free Cash Flow 327 480
Strong increase in Operating Cash Flowreflects EBIT growth and tightened working
capital management
Free Cash Flow
improved despitesomewhat higher outlays for capex and M&A
FFO/Debt
improved to 31.9% in line with
usual seasonal pattern of liquidity build-upin
H2
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+1,382 1)
+592 1)+538
-542
Net financial liquidity reduced compared to year-end 2010 due toannual payment to civil servants pension fund and dividend
1) Adjusted for mandatory exchangeable bond and cash collateral on put options as well as the effects of the net valuation of the financial derivatives related to the Postbank transaction
EUR mn
Dec 31, 2010 Sep 30, 2011 All otherliquidityeffects
Civil Servant
Pensions
Net Debt (-)/Liquidity (+)
-786
Dividend
Net financial liquidityimproved by EUR
390mnvs. last quarter-end
June 30, 2011
+202
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Solid
revenue
driven by parcel growthand
good volume development
in
Communication
EBIT
performance reflects
Strong German parcel business
Good volumes in Mail communication
Ongoing cost control
Normalization of e-investments
Operating cash flow improves strongly,reflecting EBIT growth and workingcapital
management
Capex
remains below last year
only
dueto
phasing
EUR mn
Q3
2010
Q3
2011 Chg.
Revenue 3,288 3,373 2.6%
EBIT 257 302 17.5%
OperatingCash
Flow 287 407 41.8%
Capex 101 90 -10.9%
EBIT stabilization materializing
Mail: Divisional Results Q3 2011
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748710
749
888
678665696
yoy +10%
205194
206
239
184181188
yoy +11%
Revenues, in EUR mn Volumes, in mn units
Dynamic growth of Parcel Germany
Q4Q3Q2Q1
2010 2011
Q1 Q2
Parcel Germany: Quarterly Development
Q4Q3Q2Q1
2010 2011
Q1 Q2 Q3Q3
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Secure communication
E-Postbrief
New parcel network (faster, more efficient, morecapacity, more flexible pick-up times)
MAIL: Growing in Parcel & Digital Services
Mail Communication
Digital strategy Take our core business model into the digital world
Dialogue Marketing
Press Services
E-Commerce
Traditional
parcel business
Successful integration into MAIL business in 2007
Pioneer a marketplace for quality journalistic content
DieRedaktion.de
Facilitating online shopping and parcel shipment
MeinPaket.de
DHL eParcel
Efficient and targeted online advertising
Werbemanager
nugg.ad
Adcloud
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Fundingrequirements
Cashgeneration
D&A
~ EUR 0.2 bn
EBIT~
EUR 1bn
MAIL: Securing Sustainable Profitability
Why EUR 1bn?
Share of:Corp. costs,
tax, dividend, etc
Pensions in excessof EBIT expenses
Investments
EUR 1bn EBIT secures Mail as a self-financing unit within the group
EBITstabilize at
~
EUR 1bn level
Beyond 2011
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DHL36%
Others27%
TNT6%
UPS10% FedEx
21%
Japan
Operating in Express since 1972
Singapore
Operating in Express since 1972
Malaysia
Operating in Express since 1973
India
Market entry in 1979
Blue Dart acquisition in 2005
China
Joint venture with Sinotrans since 1986
Global leading position with particular strength in Asia
Examples
DHL Express: TDI 1)
Market Position
TDI market share in Asia/Pacific 2) Pioneer/Early-mover in Asia
1) TDI = Time Definite International; 2) Source: Market Intelligence 2011 (FY 2010 data, MRSC); Scope: AU, CN, HK, IN, JP, KR, SG, TW
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Revenues increased slightly despite adversefx-effects, volatile market environment andlower freight rates, especially in OceanFreight. Organic growth was 3.4%
Good improvement in Road Freight
operating performance
Strong Gross Profit
performance due tobetter buying
conditions and profitable
growth approach
Air freight: GP/export ton +8% yoy
Ocean freight: GP/TEU +13% yoy
Improved Gross Profit and cost disciplinedrive EBIT increase;
EBIT margin
significantly increasing from 2.7% last yearto
3.2%
Substantial growth in operating cash flowprimarily due to focused net workingcapital
management
Continued investment
to improve ITsolutions for global applications
Continued profitable growth and high cash flow
Global Forwarding, Freight
Divisional Results Q3
2011
1) 2010 EBIT included non-recurring items of EUR -2mn
EUR mn
Q3
2010
Q3
2011 Chg.
Revenue 3,715 3,787 1.9%
EBIT 100 1) 122 22.0%
OperatingCash
Flow 98 133 35.7%
Capex 31 38 22.6%
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Revenue
flat on reported basis due toadverse fx-effects and disposal of ETS.
Organic revenue was up by 6.2%
Strong EBIT
growth driven by goodunderlying business activity and continuousimprovement measures
Operating Cash Flow lower due toreceivables increase from ongoing growth inexisting and new contracts as well as timingeffects
Capex increase supports furtherbusiness
growth
EUR mnQ3
2010Q3
2011 Chg.
Revenue 3,326 3,323 -0.1%
EBIT 83 1) 99 19.3%Operating Cash
Flow 147 86 -41.5%
Capex 52 58 11.5%
Contracts won
Annualized revenue
Supply
Chain
New gains 200 280
Executing a steady improvement in operating performance
Supply Chain
Divisional Results Q3
2011
1) 2010 EBIT included non-recurring items of EUR -1mn
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20082007200620052004200320022001 2009 2010
Dividend development since IPO
Dividend increase of 8.3% to
0.65
approved by the AGM on May 25th
Adjusted for Postbank effects andnon-recurring items this reflects apayout ratio of 59% and is within ourtarget payout ratio of 40
60%
Dividend for FY 2010 increased to
0.65
0,650,600,60
0,90
0,750,70
0,500,44
0,400,37
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Impact 2011
Interest
component
Valuation
Share price < ~ EUR 22.00
EUR -180mn p.a.
no significant impact
Share price > ~ EUR 22.00
EUR -180mn p.a.
~ EUR -90m per EUR 1 increase inPostbank share price and vice versa
Reclassification of Postbank shares as Assets held for sale
atend of February 2011
Mark to market valuation ofinvestment
Offset by mark to market valuation ofderivatives
Value of investment capped at~ EUR 22.00
Mark to market valuation ofderivatives
Changes to the P+L Impact of Postbank Transaction in 2011
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Postbank effects include
At equity result of Postbank until Feb 28 th
Reclassification of Postbank shares asAssets held for sale, i.e. no furtherequity
consolidation
Postbank valuation effects
Interest component for mandatoryexchangeable bond and cash collateral
Net profit excluding Postbank effects increased to EUR 359mn in Q3 2011
Impact of Postbank Transaction on the P+L
EUR mn9M
20109M
2011Q3
2010Q3
2011
Consolidated netprofit (reported) 1) 2,054 988 226 385
t/o Postbankeffects 1,334 -107 -92 26Net profitexcludingPostbank effects 720 1,095 318 359
1) Attributable to Deutsche Post AG shareholders
+52.1% +12.9%
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Investor Relations Contacts
Florian Bumberger
+49 228 182 63208
E-mail: florian.bumberger@deutschepost.de
Florian Bumberger
+49 228 182 63208
E-mail: florian.bumberger@deutschepost.de
Sebastian Slania
+49 228 182 63203
E-mail: sebastian.slania@deutschepost.de
Sebastian Slania
+49 228 182 63203
E-mail: sebastian.slania@deutschepost.de
Daniel Stengel
+49 228 182 63202
E-mail: daniel.stengel@deutschepost.de
Daniel Stengel
+49 228 182 63202
E-mail: daniel.stengel@deutschepost.de
Martin Ziegenbalg, Head of Investor Relations
+49 228 182 63000
E-mail: m.ziegenbalg@deutschepost.de
Martin Ziegenbalg, Head of Investor Relations
+49 228 182 63000
E-mail: m.ziegenbalg@deutschepost.de
Robert Schneider
+1 212 672 1729
E-mail: robert.schneider1@deutschepost.de
Robert Schneider
+1 212 672 1729
E-mail: robert.schneider1@deutschepost.de
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Disclaimer
This presentation contains certain statements that are neither reported results nor other historicalinformation. These forward-looking statements are subject to risks and uncertainties that could causeactual results to differ materially from those expressed in the forward-looking statements. Many of theserisks and uncertainties relate to factors that are beyond Deutsche Post AGs ability to control or estimateprecisely, such as future market and economic conditions, the behavior of other market participants, theability to successfully integrate acquired businesses and achieve anticipated synergies and the actions ofgovernment regulators. Readers are cautioned not to place undue reliance on these forward-lookingstatements, 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 orcircumstances 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 buyany security, nor shall there be any sale, issuance or transfer of the securities referred to in thispresentation 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, Canadaor Japan or any other jurisdiction where to do so would be unlawful.
This document represents the Companys judgment as of date of this presentation.
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