DPDHL Commerzbank German Investment Seminar 09012012

Larry Rosen, CFO
New York, 9-11 January, 2012

Deutsche Post DHL
Commerzbank

-

German Investment Seminar
Deutsche Post DHL | Page Commerzbank German Investment Seminar | New York | 9-11 January, 2012 2

EBIT growth of 40% in
9M

2011

2011 guidance increased
with Q3 figures

Major restructuring is
completed

Taking full benefit of
globalization and
outsourcing trends

Strategy 2015:

Provider of choice

Employer of choice

Investment of choice

MAIL: stabilization of
EBIT at ~EUR 1bn, key
driver parcel growth

DHL: 1315% EBIT
CAGR in 201015, key
driver fast growing
regions

Organic growth driven by
a focused business
portfolio

Leading market position
in key growth regions

Solid liquidity and
balance sheet position
Highlights
Operational
performance on

track
Clear strategic
ambitions and targets
Leverage our
growth potential
Mail: strategic levers for EBIT stabilization in place
Performance on track, clear strategic ambition and targets
DHL: strong positioning in structural growth markets
Agenda
Deutsche Post DHL at a Glance
1) Underlying EBIT; 2) Average FTEs FY 2010
The

postal service
for Germany
Domestic German Mail
and Parcel
Sales:

EUR 13,821mn
EBIT
1)
:

EUR 1,152mn
Empl.
2)
:

146,365
The

logistics company for the world
International and
Domestic Express
Sales:

EUR 11,111mn
EBIT
1)
:

EUR 785mn
Empl.
2)
:

88,384
Global Air, Ocean and
Road Freight
Sales:

EUR 14,341mn
EBIT
1)
:

EUR 390mn
Empl.
2)
:

41,729
Global Supply
Chain

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
Improvement in customer satisfaction

Stable or increased overall satisfaction in
3/4 of recent surveys
Divisional business development
programs set up
Building a track record

of solid and
improving 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
Provider
of Choice
Employer of Choice Investment of Choice
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 mn
9M
2010
9M
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%
Consolidated
net profit
2)
2,054 988 -51.9%
EPS (in EUR) 1.70 0.82 -51.8%

Reported

revenue

growth affected by
adverse fx-effects and divestments. Organic
growth of +6.0%

EBIT

continues to improve strongly driven by
continuous growth in our DHL divisions while
Mail EBIT is stabilizing

9M 2011 Financial result

was impacted by
Postbank effects of

EUR -107mn

compared
to EUR +1,334mn last year

Tax

rate in line with 25% guidance

Consolidated net profit

up by 52%
excluding Postbank effects
Group
Mail
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 transaction
effects to improve in line with
operational

performance

Capex not more than EUR 1.6bn

Tax rate of 25%

Restructuring will have a considerably
lower influence on operating cash flow
than last year (in 2011 c. EUR 200mn
cash

outflow)
prev. EUR 2.22.4 bn
prev. EUR 1.01.1 bn
prev. EUR 1.61.7 bn
unchanged
Full-year 2011 Guidance
Target balance sheet structure is the leading element of our finance strategy
Balance sheet
structure
Dividend policy
Priority for use
of excess liquidity
Financial debt
portfolio
Target / maintain BBB+ rating

4060% of net profit
(cash flow / continuity considered)

2010 dividend up 8.3% to EUR 0.65
1)
(pay-out of 59%)
1.

Invest in business
2.

Fund pensions
3.

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 steering
metric
1) Proposal to AGM
Overview DPDHL Finance Strategy
Agenda
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
mn
9M

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, supported
by gradual capacity enhancements

Stable volume development in Mail
Communication so far in 2011

Union agreement on further labor flexibility

Legislator sets new price-cap at CPI

0.6%
Highlights

Comprehensive
package for
improved
productivity and
employee
satisfaction
Long-term union agreement New price-cap formula
Wage negotiations

More headroom
for

future price
increases
Parcel concept 2012

Investment in
service quality and
capacity increase
to enable future
parcel
growth

Negotiations
started

Agreement
expected in
Q1

2012
EBIT stabilization elements being realized
Mail Target: EBIT Stabilization at EUR 1bn
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 fund
Extension 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 and
short breaks agreements
Comprehensive package, agreed until 2015
Mail: Long-term Union Agreement
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 rate
minus 0.6% x-factor)
Postal price cap decision of Federal Network Agency
1)
New formula: x-factor reduced from 1.8 to 0.6%
Reference period for relevant CPI
2)
brought
forward by six months
Regulation valid until 31 Dec. 2013
Directly impacted Mail revenues of EUR 3.5bn
Driver: Demographics/Convenience/Cost
Established segments New segments
Online share of total retail spend (by segment, in %)
8
4 4
11
20
35
92
< 1
Pharma-

ceuticals
Total Drugstore
products
Food products Consumer
electronics
Fashion
and shoes
Media (books/
CD/DVD)
Driver: Convenience/Cost
5% market growth until 2020
1)

driven by changing consumer
behavior towards e-commerce
1) Source: Bundesverband des Versandhandels, Gesellschaft fr Konsumforschung
Mail: Growth in German Parcel Market
Parcel Germany: Strategic Focus

DPDHL only postal organization
world-wide to offer nation-wide 24/7
access

to all shipping needs

13,500

retail outlets

1,000

Parcel Boxes for 24/7 drop-off

2,500

automatic PACKSTATIONs
to

drop-off, frank, or use as
delivery

address

Online Franking of all parcel products

iPhone and Android apps for
all

services

To date 2mn registered Packstation
customers

83% check whether vendor ships to
Packstation before purchase

36% increase their online spend
after registration for Packstation

Target group in age segment 2550
years with high online affinity
Parcel Germany is shaping eCommerce as the leading
service

provider
Source: Europisches Handelsinstitut

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
Agenda
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 bn
EBIT CAGR
1315%
DHL Serves Structural Growth Markets
Achieve benchmark/sector leading
operating margins by 2015 or
earlier for each DHL unit
~ 89%
Air ~ 68%
Ocean ~ 78%
~ 7%
Target revenue CAGR. for 20102015
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 > 20,000 Employees
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. 1 Market position
> 500,000 > 86,000 > 300 Customers
15F 14F 13F 12F 11F 10 09 08 07
+4
+2
0
-2
-4
IHS Global Insight
EIU
IMF
Forecast
Global GDP % growth (real) Levers for cost flexibility

Increased proportion of cost structure made
variable (e.g. temporary labor in
international

operations)

Optimized mix of owned aircraft, short-term
leases and long-term leases

Discretionary spend (e.g. advertising)

Long-term contracts in Supply Chain, often
with agreed minimum volumes
Well prepared for volatile environment
DHL: Economic Outlook and Implications
EUR mn
9M

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 of
competition

Further yoy margin improvement as
operating leverage and overall cost discipline
offset ongoing investments into network,
advertising and training

Speed of Yellow

global advertising
campaign
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
Shipments
Revenue
34%
DHL Express: Focus on our Core Competence TDI
DHL Express

focus on TDI

has moved the needle

Major domestic withdrawals
contributing to that
proportion

Domestic activity shifted
from mature EU markets to
growth markets in Asia /
Pacific and Latin America
Domestic Strategy:

Maintain successful,
profitable businesses, e.g.
India Blue Dart, Mexico

Continuous monitoring of
lower performing
businesses
75% 61%
Domestic = TDD + DDD International = TDI + DDI
2008 2010
19%
US Asia

> 10%
Europe Asia

> 10%
Intra-Asia

> 10%
Others
~50%
of global DHL
TDI shipments
touch Asia
Dynamic growth continues: Double digit volume growth on all major
Asia-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
DHL
Express

Global
Market
Share TDI of
30%
External Research Underlining TDI Leadership across all regions
outside 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%
FedEx
11%
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
EUR mn
9M

2010
9M

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 development
despite unfavorable currency effects and
volatile market environment in Q3

As expected slightly weaker volumes due to
increased general market softening and
strong volumes in Q3 2010

Trend towards higher margin levels driven by
favorable buying conditions, profitable

growth
approach 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 11 9M 10
238
205
DHL Global Forwarding, Freight: Key Figures
1) Reported

EBIT: including

non-recurring

items

of

-6mn in 9M 2010
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 of
International Trade
A global business with strong contributions from emerging markets
Europe
North
America
North
Asia-Pac
MENAT
LATAM
South
Asia -Pac
& Africa
Other
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
Kunming
Xiamen
Hangzhou
Wuhan
Wuxi
Nanjing
Shenzhen
Guangzhou
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
International
Airfreight
International
Ocean freight
Industrial Project
Customer
Program
Management
Customs
Brokerage
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, connect
China to fast growing neighbors, e.g. ASEAN, CIS
DHL Global Forwarding, Freight: Service Extension Towards
a Comprehensive Portfolio Connecting China and Beyond
Our current service offering in China 2011
Trade
Facilitation
(IOR/EOR)
Ocean Secure
with GPS-

enabled devices
Shippers
Insurance
Trade/Fair/
Exhibition
Logistics
Chinese Desks
At Overseas
Carbon Report
& Offsetting
Offering
International
Ocean freight
Industrial
Project &
Chartering
International
Airfreight
International
Supply Chain
Customs
Brokerage
Control Tower
Management/
LLP
Domestic
Airfreight
Multimodal-

Rail Segments
Domestic Road
freight
Multimodal-

Cross-border
Segments
Multimodal-

Air Segments

(SeAir, Rail-Air)
Multimodal-

Land Bridge &
Mini Land
Bridge
Value added
service
Logistics
Management
Services
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 mn
9M

2010
9M
2011 Chg.
Revenue 9,559 9,675 1.2%
EBIT
1)
185 289 56.2%

Continuous growth momentum driven by
existing contracts and new business wins

Asia Pacific again posting the highest growth,
now representing ~10% of total revenue

New business of around EUR 280mn in
annualized revenue signed in Q3 2011
(Q3

2010: EUR 200mn). Majority of new
signings in Retail, Consumer, Life Sciences
& Healthcare and Automotive
Highlights
DHL Supply Chain: Key Figures
2%
Energy
Inbound
Transport
Raw
Materials
Production
Flows
Outbound
Transport
Returns
Ware-

housing
Distri-

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
DHL Supply Chain: Global Sector Focus
Global Sector Focus
By focusing on our six global sectors we are getting closer to our
customers, offering sector-specific supply chain solutions
Our Approach

Sector approach implemented and
enhanced since several years now;
considered as key to success

Dedicated Global Sector teams
established to strengthen our approach
for six key industries

Development of sector-specific,
innovative solutions, ensuring
sustainable competitive advantage for
our customers and DHL

Focus on best practice & knowledge
exchange

across regions, DHL
Divisions, and with our customers
Energy
Life Sciences
& Healthcare
Automotive
Technology
Retail
Consumer

Market leader in Asia Pacific

Strongest growing region, currently
generating ~10% DHL Supply Chains global
revenue

> 26,000 employees

700 facilities with total surface of 4 million m
2

14 countries

Following Supply Chains global strategy, the
strategic focus in Asia Pacific depends on
local market maturity and dynamics:

High growth countries (China, India):
Enhance growth organically and through
targeted, small acquisitions

Immature markets: Consolidation of
customer supply chains through integrated
end-to-end solutions

Mature markets: Innovative,
transformational deals, offering Value
Added Services and leveraging strategic
products replication program

Strong focus on talent management

Drive footprint growth with build/lease-back
agreements
Regional HQ
Singapore

Regional HQ
Singapore
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
Deutsche Post DHL | Page Commerzbank German Investment Seminar | New York | 9-11 January, 2012 33 33
Airline
Solutions
Co-Packing
Technical
Services
Lead Logistics
Provider
E-Fulfillment
33
Our strategic products continue to deliver results and offer innovative
solutions beyond conventional warehousing & distribution
DHL Supply Chain: Strategic products successful in Asia Pacific
Airline solutions are optimized
Above the Wing

operations.
Services are based upon globally
defined standards

and the support
of a dedicated team
Core Services:

Assembly and delivery of catering trays and other Above the Wing

products such as In-Flight-Retail & Entertainment

Inventory management, cleaning of equipment and
waste

management
Benefit:

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 Airline
Solution business with British Airways at
London Heathrow, we furthered our Above-

the-Wing

product offering through the new
Qantas contract in Australia
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 and
efficiency

improvements

2011 guidance increased in November: confident to sustain and
continue our performance improvement in the short-

and medium-term
SUMMARY
Agenda
Appendix
Appendix

Revenue

kept growing in Q3 despite
ongoing adverse effects from FX and
divestments. Organic growth was +5.7%

DHL again posts double-digit EBIT

growth

and margin improvement in all
three

divisions

Mail

also contributed to EBIT

growth

VAT
regulation no longer impacts yoy comparison

Q3 2011 Financial result

was impacted by
Postbank effects of EUR +26mn compared
to EUR -92mn last year

Consolidated net profit

and EPS

increase
reflect underlying EBIT improvement and
lower 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%
Consolidated
net profit
2)
226 385 70.4%
EPS (in EUR) 0.19 0.32 68.4%
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 mn
Q3
2010
1)
Q3
2011
1)
Cash from operating
activities before

changes
in Working Capital 616 635
Changes in
Working

Capital 16 191
Net cash from operating
activities after

changes in
Working 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 Flow

reflects EBIT growth and tightened working
capital management

Free Cash Flow

improved despite
somewhat higher outlays for capex and M&A

FFO/Debt

improved to 31.9% in line with
usual seasonal pattern of liquidity build-up
in

H2
+1,382
1)
+592
1)
+538
-542
Net financial liquidity reduced compared to year-end 2010 due to
annual 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 other
liquidity
effects
Civil Servant

Pensions
Net Debt (-)/Liquidity (+)
-786
Dividend
Net financial liquidity
improved by EUR

390mn
vs. last quarter-end
June 30, 2011
+202

Solid

revenue

driven by parcel growth
and

good volume development

in
Mail

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 working
capital

management

Capex

remains below last year

only

due
to

phasing
EUR mn
Q3
2010
Q3
2011 Chg.
Revenue 3,288 3,373 2.6%
EBIT 257 302 17.5%
Operating
Cash

Flow 287 407 41.8%
Capex 101 90 -10.9%
EBIT stabilization materializing
Mail: Divisional Results Q3 2011
748
710
749
888
678
665
696
yoy +10%
205
194
206
239
184
181
188
yoy +11%
Revenues, in EUR mn Volumes, in mn units
Dynamic growth of Parcel Germany
Q4 Q3 Q2 Q1
2010 2011
Q1 Q2
Parcel Germany: Quarterly Development
Q4 Q3 Q2 Q1
2010 2011
Q1 Q2 Q3 Q3
Secure communication

E-Postbrief

New parcel network (faster, more efficient, more
capacity, 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
Funding
requirements
Cash
generation
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 excess
of EBIT expenses
Investments
EUR 1bn EBIT secures Mail as a self-financing unit within the group
EBIT
stabilize at
~

EUR 1bn level
Beyond 2011
Ongoing strong volume growth drives further EBIT improvement
Express: Divisional Results Q3 2011
1) 2010 EBIT included non-recurring items of EUR +5mn

Revenues

increased due to ongoing strong
international volume growth. Organic growth
was 12.7%

Strong intra-Asia platform

also supporting
growth on Asia-bound lanes out of Europe
and the US

EBIT

growth reflects revenue increase and
strengthening margin despite ongoing
investment in advertising and training

Overproportionate increase in Operating
Cash Flow

driven by tightened working
capital management

Higher Capex

dedicated to investments into
aviation network and our new Shanghai hub
EUR mn
Q3
2010
Q3
2011 Chg.
Revenue 2,719 2,929 7.7%
EBIT 199
1)
219 10.1%
Operating
Cash

Flow 317 370 16.7%
Capex 48 135 >100%
DHL
36%
Others
27%
TNT
6%
UPS
10%
FedEx
21%
Japan

Operating in Express since 1972
Singapore

Malaysia

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

Revenues increased slightly despite adverse
fx-effects, volatile market environment and
lower freight rates, especially in Ocean
Freight. Organic growth was 3.4%

Good improvement in Road Freight

operating performance

Strong Gross Profit

performance due to
better buying

conditions and profitable
growth approach

Air freight: GP/export ton +8% yoy

Ocean freight: GP/TEU +13% yoy

Improved Gross Profit and cost discipline
drive EBIT increase;

EBIT margin
significantly increasing from 2.7% last year
to

3.2%

Substantial growth in operating cash flow

primarily due to focused net working
capital

management

Continued investment

to improve IT
solutions 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%
Operating
Cash

Flow 98 133 35.7%
Capex 31 38 22.6%

Revenue

flat on reported basis due to
adverse fx-effects and disposal of ETS.
Organic revenue was up by 6.2%

Strong EBIT

growth driven by good
underlying business activity and continuous
improvement measures

Operating Cash Flow lower due to
receivables increase from ongoing growth in
existing and new contracts as well as timing
effects

Capex increase supports further
business

growth
EUR mn
Q3
2010
Q3
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
2008 2007 2006 2005 2004 2003 2002 2001 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 and
non-recurring items this reflects a
payout ratio of 59% and is within our
target payout ratio of 40

60%
Dividend for FY 2010 increased to

0.65
0,65
0,60 0,60
0,90
0,75
0,70
0,50
0,44
0,40
0,37
2009 2010
EUR mn Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Net income from
associates 20 26 25 -43 28 34 24 31 -33 56
Net other finance
costs/ net other
financial income 598 -34 -355 -212 17 1,294 -166 -253 58 933
t/o Postbank-related 737 97 -188 -14 632 1,414 -46 -123 272 1,517
t/o not Postbank
related -139 -131 -147 -198 -615 -120 -120 -130 -214 -584
Total net finance
costs/net financial
income 618 -8 -310 -255 45 1,328 -142 -222 25 989
t/o Postbank-related 757 123 -163 -66 651 1,448 -22 -92 235 1,569
t/o not Postbank-

related -139 -131 -147 -189 -606 -120 -120 -130 -210 -580
Main impacts on the
financial result

at equity result of
Postbank

Postbank transaction
valuation effects

interest component for
mandatory
exchangeable bond and
cash collateral
2010 financial result excluding Postbank related effects was
EUR -580mn
P+L Impact of Postbank Transaction in 2009/10
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 in
Postbank share price and vice versa
Reclassification of Postbank shares as Assets held for sale

at
end of February 2011

Mark to market valuation of
investment

Offset by mark to market valuation of
derivatives

Value of investment capped at
~ EUR 22.00

Mark to market valuation of
derivatives
Changes to the P+L Impact of Postbank Transaction in 2011

Postbank effects include

At equity result of Postbank until Feb 28
th

Reclassification of Postbank shares as
Assets held for sale, i.e. no further
equity

consolidation

Postbank valuation effects

Interest component for mandatory
exchangeable 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 mn
9M
2010
9M

2011
Q3

2010
Q3

2011
Consolidated net
profit (reported)
1)
2,054 988 226 385
t/o Postbank
effects
1,334 -107 -92 26
Net profit
excluding
Postbank effects
720 1,095 318 359
1) Attributable to Deutsche Post AG shareholders
+52.1% +12.9%
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
Disclaimer
This presentation contains certain statements that are neither reported results nor other historical
information. These forward-looking statements are subject to risks and uncertainties that could cause
actual results to differ materially from those expressed in the forward-looking statements. Many of these
risks and uncertainties relate to factors that are beyond Deutsche Post AGs ability to control or estimate
precisely, such as future market and economic conditions, the behavior of other market participants, the
ability to successfully integrate acquired businesses and achieve anticipated synergies and the actions of
government regulators. Readers are cautioned not to place undue reliance on these forward-looking
statements, 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 or
circumstances 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 buy
any security, nor shall there be any sale, issuance or transfer of the securities referred to in this
presentation 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, Canada
or Japan or any other jurisdiction where to do so would be unlawful.
This document represents the Companys judgment as of date of this presentation.

DPDHL Commerzbank German Investment Seminar 09012012

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New York, 9-11 January, 2012

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