DPDHL Business Profile Presentation - Deutsche Post · · 2018-04-19“This brief DPDHL business profile aims to provide financial markets ... transportation subcontractors

Deutsche Post DHL 2013 Business Profile

DPDHL Investor Relations

“This brief DPDHL business

profile aims to provide financial markets

and our shareholders a quick overview of our company

structure and key corporate facts & figures. Along the four

Divisions you will find an overview of our product portfolio

as well as relevant regional and customer segmentations.

Please note that all figures are based on full-year 2013

numbers unless stated otherwise. You can find links to all

intra-year updates as well as any further information on

p.33 of this presentation, or – of course – please do not

hesitate to get directly in contact with my IR team.”

Martin Ziegenbalg Head of Investor RelationsDeutsche Post DHL

INTRODUCTION TO GROUP STRUCTURE, PRODUCTS AND MARKET POSITIONS

IR | DPDHL BUSINESS PROFILE| PAGE 2

No. 1 in contract logistics

Global leader in Forwarding

Europe’s largest postal service

Leading Parcel service provider for eCommerce

No. 1 in international express delivery

World´s largest Air and 2nd largest Ocean freight forwarder

Global TDI leader with > 30% market share, serving 2.7m customers in 220 countries

Global market leader, market share of 8% well ahead next biggest competitors

64m letters / 3.4m parcels per workday to >40m households in Germany

Partner for eCommerce and a pioneer in secure digital communications

Market cap1): EUR 31.6 bnRevenue2): EUR 54.91 bn

EBIT2): EUR 2.86 bn

A GLOBAL PLATFORM WITH A UNIQUE PORTFOLIO

1) As of 31/12/2013; 2) FY 2013


THE BOARD OF MANAGEMENT


Dr. Frank AppelCHIEF EXECUTIVE OFFICERMember since November 2002 CEO since February 2008 Appointed until October 2017

Lawrence RosenFINANCE, GBSMember since September 2009Appointed until August 2017

Angela TitzrathHUMAN RESOURCESMember since May 2012Appointed until April 2015

Jürgen GerdesPOST – eCOMMERCE - PARCELMember since July 2007Appointed until June 2015

Ken AllenEXPRESSMember since February 2009Appointed until February 2017

Roger CrookGLOBAL FORWARDING, FREIGHTMember since March 2011Appointed until March 2019

John GilbertSUPPLY CHAINMember since March 2014Appointed until March 2017

1) Excluding Germany; 2) Headcount as of 12/31/2013; FTE ~435.000; 3) O.w. 40.321 civil servants

DPDHL is among the top 10 largest employers worldwide

Express85.000

Supply Chain145.000

Others12.000

PeP148.000

DGF43.000

Americas76.000

Other Regions17,000

Europe1)

105.000

Germany3)169.000

Asia Pacific66.000

Total2)

478,000

Employee count:

by region by division

KEY EMPLOYEE FIGURES


• Support employee volunteer work with Global Volunteer Day and the Living Responsibility Fund

• Employees donate for colleagues and provide financialassistance through the internal We Help Each Other relief fund.

• International partners: SOS Children’s Villages and Teach For All• Improved educational opportunities and employability for young people • Development of the potential of children and young people

regardless of their social background

• Strategic partnership with the United Nations • Support preparedness with Get Airports Ready for Disaster program• On-location assistance provided by our Disaster Response Teams

• Shared Value approach: Continue to optimize our own operations, and also push commercialization of our GOGREEN value-added services

• 30% CO2 efficiency improvement target by 2020 (2007 base), including our transportation subcontractors

• Driving innovation in our sector: Introduced electric Streetscooter in 2013

GoTeachEducation

GoGreenEnvironmentalprotection

GoHelpDisastermanagement

Employees

We make a positive contribution to the environment and societythrough our Living Responsibility programs

LIVING RESPONSIBILITY


DHL

Formerly: MAIL Division EXPRESSGLOBAL

FORWARDING, FREIGHT

SUPPLY CHAIN

GLOBAL BUSINESS SERVICES

Corporate Center

DHL Customer Solutions & Innovation

GROUP: ORGANIZATIONAL SETUP


Post – eCommerce - Parcel

FY 20131) divisional overview

in EUR mRevenue EBIT EBIT margin

POST – eCOMMERCE – PARCEL (PeP) 15,261 1,286 8.4%

EXPRESS 11,821 1,082 9.1%

GLOBAL FORWARDING & FREIGHT 14,817 476 3.2%

SUPPLY CHAIN 14,227 439 3.1%

CORPORATE CENTER / OTHER & CONS. -1,214 -422 –

GROUP 54,912 2,861 5.2%

GROUP: DIVISIONAL OVERVIEW

IR | DPDHL BUSINESS PROFILE| PAGE 81) Restated because of IFRS 10/11

NEW ORGANIZATIONAL STRUCTURE FOR POST, eCOMMERCE & PARCEL

• Mail Communication• E-Post• Dialog Marketing• Press Services• Export/Import Germany

• Germany• Europe• International• Crossborder/Intercontinental

The Post for Germany The global eCommerce enabler

Two main businesses, each with the brand power, expertise and resources necessary to meet our ambitious growth targets – Renaming of MAIL Division to “Post, eCommerce & Parcel”

Sub-division Post Sub-division eCommerce & parcel


MAIL Division

Mail Communication

Dialogue Marketing

Press Services

Retail Outlets

Pension Services

Global Mail

Parcel Germany

Post

All letters including import /export fromand to Germany. Also includes newservices like E-Post and ADAC Postbus

2013 Revenue, restated: EUR 9,972m

eCommerce - Parcel

Domestic and cross-border parcels and parcel operations in selective markets

2013 Revenue, restated: EUR 5,289m

Asset shifts

Domestic Parcel in Czech Republic, Netherlands, Belgium,Poland and India

Post - eCommerce – Parcel: NEW REVENUE REPORTING STRUCTURE

Letters → Post

Parcels → eCommerce - Parcel

PAGE 10

Old Structure New Structure

IR | DPDHL BUSINESS PROFILE|

Strategy• Continuous network enhancements to improve service quality and secure

competitive advantage• Absolute customer focus along all touch points• Focus on profitability and value oriented pricing• Leveraging of cross business unit opportunities to manage risks and

recover high investments for network expansion

Business model• Standardized, scheduled network • Self-operated infrastructure• Door-to-door delivery capability globally• Asset intensive (planes, hubs, vehicles)• Standardized, speed oriented network business, managed for utilization

Customers• 2.6m business customers with B2B shipments• Low but increasing share of high value more complex B2C shipments

Market position/trends• Presence in more than 220 countries and territories• Global market leader in the international express market with 32% market

share• Strong presence in high growth markets (Asia, Middle East, Russia & CIS,

Latin America)

• >250 dedicated aircraft serving more than 500 airports globally

• 3 main global hubs linked by intercontinental network

DHL EXPRESS: BUSINESS MODEL SUMMARY


TDI (Time Definite International) = Premium segment within Express Industry

Time Definite = Dedicated delivery at a scheduled time of day• Requires end-to-end network at adequate speed

International = Cross-Border Shipment (intra- or between continents)• Requires dense and broad international network

Other Product Revenue Share, mainly• DDI: Day Definite International (only offered in 5 countries in EU)• DDD: Day Definite Domestic• ACS: Air Capacity Sales (re-sale of spare capacity on dedicated fleet to optimize

utilization, not sold by core Express sales teams)

TDD: Time Definite Domestic Revenue Share = Delivery at scheduled time within one country• Offered in selected countries with high market share

∑ 82% of DHL EXPRESS shipments are Time Definite

8%

TDI

FY 2013

18%

74%

TDD

Other

Strong Focus on Premium TDI Product

DHL EXPRESS: PRODUCT MIX


SERVICE• Quicker delivery reflects positively on customer

satisfaction / experience• Tailored delivery options and full visibility for own

customer

OUTSOURCING OF NON-CORE ACTIVITY• Knowledge of international markets, transport regulations

& customs • Electronic solutions for processing documentation,

reporting, shipment tracking

SECURITY• Visibility on items in transit; low failure/loss rate• Short transit time lowers risk of theft

EFFICIENCY• Quick replacements reduces production shutdowns• Reduced order-to-delivery cycle supports increased customization of product & service offerings

INFRASTRUCTURE• Access to smaller/untested markets

• Ability to cope with short-term demand

COST SAVINGS• Lower inventory levels possible due to

faster movement• Economies of scale

passed on to customers

TIME SAVINGS• Reduced transit time / support for just-in-time

inventory management models• Especially in emerging markets with weaker

infrastructure

GLOBAL REACH• Direct access to international customer base through door-to-door service

(particularly for SMEs without global operations)• Sourcing opportunities from global markets – access to new materials and more

cost effective suppliers

Express Shipping valuable to customers for many reasons

DHL EXPRESS: WHY DO OUR CUSTOMERS USE PREMIUM EXPRESS SHIPPING?


Industries

AutomotiveConsumer Products & ServicesChemicalsEnergyEngineering&ManufacturingFinancial ServicesLSHCLogisticsPublic SectorRetailTechnologyTextile

Parcels / Pallets and/or

AdaptorsAircraft partsBootsCarsCDs/DVDsClinic TrialsClothesComputersCosmeticsElectronic ComponentsElectrical DevicesFiltersGlassesHuman BloodInstruments

Documents

AirwaybillsApplicationsBank DocsBooks/ReportsChecksContractsCertificatesDebit NotesInvoicesFormsLegal DocsManuscriptsPacking ListsPassportsPlansProposalsShipping DocsTickets

Broad range of Customer Industries and Shipment Content

DHL EXPRESS: WHO ARE OUR TDI CUSTOMERS AND WHAT ARE WE MOVING?

LeatherMobile phonesMotorsPrintersSamplesSensorsSerumSpare PartsSports EquipmentTextilesToolsToysUniformsUSB SticksVaccines


• The most international company in the world, based in more than 220 countries and territories

• Since early 70’s, DHL expanded its global network reach, pioneering international express delivery markets

• Early presence in Asia and Europe led to strongly established market leading position

• About half of TDI volumes relate to Asia, one fifth being shipped intra-Asia

7%

33%

17%

46%

EuropeMEAAsia Pacific

Americas

Regional revenue mix

DHL EXPRESS: REVENUE BY REGION


The First-Mover in International Express, market entrance date by country

DHL EXPRESS: THE MOST INTERNATIONAL COMPANY IN THE WORLD


Global [21,983 m€]

Europe [6,813 m€]Americas [7,352 m€]

TDI Market Leadership in all Regions except Americas

Asia Pacific [7,487 m€]MEA [330 m€]

Source: MI study 2012, annual reports and desk researchAM: AR, BR, CA, CL, CO, CR, MX, PA, VE, US; EU: AT, BE, CH, CZ, DE, DK, ES, FR, IL, IT, NL, NO, PL, RU, SE, TR, UK; MEA: AE, ZA ; AP: AU, CN, HK, ID, IN, JP, KR, MY, NZ, SG, TH, TW, VN

MARKET POSITION IN TDI

50%

30%

16%1% 3%

FedEx

UPS

DHL

TNT

Others32%

27%

21%

7%

13% DHL

FedEx

UPS

TNT

Others

41%

23%

14%

10%

12%DHL

UPS

TNT

FedEx

Others

49%

10%9%

3%

29% DHL

TNT

FedEx

UPS

Others

40%

21%

10%

6%

23% DHL

FedEx

UPS

TNT

Others


Over 300 Commercial Air Carriers with more than 2,200 daily flights

ONE VIRTUAL AIRLINE

Purchased

Air

Dedicated

Air

> 250 aircrafts with 18 partner airlines on around 500 daily flights

Key Drivers• Service need• Sufficient capacity and

frequency• Network cost

considerations

Connecting over 500 airports and 22 major air hubs

Speed and Service drive DHL Express’ Aviation Network Design

DHL EXPRESS: AIR NETWORK STRATEGY


Business model• Brokerage of transport services• Extremely asset-light business model• Full container load (FCL) and Less than container load (LCL) services in

ocean freight• Complete range of air freight services • Road freight services comprise: Full Truck load (FTL) and Less than Truck

Load (LTL)

Customers• Strong customer base: >50% of Forbes 500 companies

Market position/trendsAir/Ocean Freight• Global No. 1 in air freight and No. 2 in ocean freight• Presence in more than 150 countries and territoriesRoad Freight• No. 2 in European road freight • Presence in more than 50 countries and territories

Strategy• Specialist in air, ocean and road freight as well as industrial projects and

end-to-end transport management solutions• Tailored sector solutions • New Forwarding Environment (NFE) framework to establish optimized

process and IT landscape

DHL GLOBAL FORWARDING, FREIGHT: BUSINESS MODEL SUMMARY


DGF

2,327

Panalpina

801

Kuehne & Nagel

1,093

DB Schenker

1,095

Air Freight volume 2012 (exports only) (in K tons)

Source: Official company publications/ estimates; MI Freight 2013; Eurostat 2013

Ocean Freight volume 2012 (in K TEU)

1,905

DB SchenkerDGFKuehne & Nagel

2,8403,743

Panalpina

1,388

European Road Freight market share 2012 (in %, based on revenue)

1.5%2.4% 1.8%

DB Schenker

3.4%

DHL Freight DachserDSV

Strong market position in all three Product Segments

DHL GLOBAL FORWARDING, FREIGHT: MARKET POSITIONS


Air and Ocean Freight are strongly exposed to higher growth regions; Road Freight is primarily European based

DHL GLOBAL FORWARDING, FREIGHT : GEOGRAPHICAL MIX

Road Freight revenue 2013(in €)

Total €4.2 bnTotal 2,215

Air Freight volume 2013(in K tons, exports view)

Ocean Freight volume 2013 (in K TEUs, exports view)

Total 2,807

25%

3%

9%

4%

59%

EuropeMiddle East, Turkey, AfricaNorth AmericaLatin AmericaAsia Pacific

34%

28%

22%

10%

6%

Germany NordicsCESE& AMEA Southwest EuropeBeNeLux / UK

43%

2%13%5%

37%

EuropeMiddle East, Turkey, AfriceNorth AmericaLatin AmericaAsia Pacific


Share of total in %

Air Freight volume 2013(in K tons, exports based)

Share of total in %

Ocean Freight volume 2013(in K TEU, exports based)

DHL GLOBAL FORWARDING, FREIGHT: SECTOR MIX

Diversified sector exposure – reflecting customer need for volume, weight and speed

26%

21%

13%

10%

8%

6%

3%2%

11%Technology

Engineering &ManufacturingLife Sciences& HealthcareAutomotive

Consumer

Retail

Energy

Chemicals

Others

24%

15%

10%10%

8%

8%

6%

3%

16%Engineering &ManufacturingConsumer

Automotive

Technology

Life Sciences& HealthcareRetail

Chemicals

Energy

Others

Strategy• Strong sector focus with deep expertise in 6 key sectors (Automotive,

Consumer goods, Energy, Retail, Life sciences & Healthcare, Technology). • Global sector expert communities, speaking the language of customers

Business model• Warehousing and related value-added services. Customer- and sector-

specific solutions across the entire value chain• ~23m square meters of warehouse space; 2,400 logistics centers,

warehouses and terminals• Williams Lea: Business Process outsourcing and marketing solutions

Market position/trends• Global market leader in contract logistics• Uniquely positioned to benefit from key market trends (outsourcing,

emergence of a global market, rise of emerging markets)

Customers• Strong customer base built on long-lasting partnerships across 60+

countries• Actively drive outsourcing for new customers and penetration of existing

contracts providing simplicity and value-added services customized to client needs

DHL SUPPLY CHAIN: BUSINESS MODEL SUMMARY


Offering Customized Solutions Across the Entire Supply Chain

Supply Chain Consulting Consulting on network flows and supply chain processes

Lead Logistics ProviderDesign, optimize and manage end-to-end supply chain as single provider

Procurement ServicesLeverage economies of scale to drive down cost and improve margins

Inbound Supply Chain Management Collect components from multiple suppliers to optimize production schedule

Manufacturing Logistics

• Design and operate packaging lines

• Labor and yard management

• Site cleaning• Vendor managed

inventory services

Distribution Logistics

• Store finished products

• Plan and execute delivery routes

• Secondary packaging for marketing

Aftermarket LogisticsManage returns and reduce write-offs

Service LogisticsRun spareparts supply chains

Return Logistics Manage large scale recalls

Plan Make Source ReturnDeliver 1 2 3 4 5

Our Services: Warehousing | Transportation | Value Added Services | Management Services

DHL SUPPLY CHAIN: PRODUCT OVERVIEW


DHL is by far market leader in a strongly fragmented market

1) DHL projection based on forecasts from IHS Global Insight and Transport Intelligence; suppliers with global footprint

DHL addressable market outgrowing GDP driven by outsourcing

5-6%

3%

Total Market Size, EUR bn

1,151

951

200

2012

1,007

848

159

2020

In-house LogisticsOutsourced Contract Logistics

Outsourced contract logistics: market shares

~13%87%

3 largest providers

~13%

2,2%

2,4%

8,2%

OtherLargest Providers1)

K+NCEVADHL

DHL SUPPLY CHAIN: OUTSOURCED CONTRACT LOGISTICS MARKET


Revenue by Region FY 2013

• Unique global presence covering 60+ countries across all major regions

• Outsourcing trend historically more entrenched in developed markets

• Significant growth in emerging markets as industries mature, driven by local and international customers

• Customer base broadly diversified across many industries

• Solutions tailored to specific industry requirements and needs, requiring in depth sector expertise

Americas

13%

28% 59% Europe

Asia Pacific, Middle East & Africa.

DHL SUPPLY CHAIN: REGIONAL AND SECTOR MIX

Revenue by Sector FY 2013

9%

Technology11%

Life Sciences &Healthcare

19% Consumer20%

Retail27%

Others

1%Williams Lea

10%Energy3%

Automotive


BACKUP

• Company History• Shareholding Structure• Last 5-year Key Financials• Links to further Information• Contact Details


1971

20001989

19911968

200

2003

1986

14951997

1998

20011997

1987 1988

1998

1970

1999

2001

From the founding of the modern postal system to the establishment of the world's leading logistics group

1490 1950 1969 1971 1998 1999 2000 2002

DHL expands network globally

DP 1st investment in DHLDP acquires Danzas & AEI

Ocean Group & NFC merge to Exel

Modern postal system founded

Deutsche Bundespost founded

DP AG goes public

Dalsey, Hillblom and Lynn found DHL

MORE THAN 500 YEARS OF LOGISTICS EXPERIENCE


2010 2012

201

2004

2006

20082004 2006

20052003

2008

2005

2002

2007

2007

2001

20122002 2003 2005 2006 2007 2008 2009 2013

From the founding of the modern postal system to the establishment of the world's leading logistics group

DHL offers express & logistics solutions

DP acquires Exel

DP launches excellence program First Choice

DHL exits US Domestic Express Business

Rebranding to DPDHL

Launch of Strategy 2015New Management Board structure completeDeutsche Post

acquires DHL

Sale of Postbank completed

MORE THAN 500 YEARS OF LOGISTICS EXPERIENCE

2014

Introduction of Strategy 2020


11.6%

Identified institutional investors by region2)

• USA 13.8%• Great Britain 14.8%• Germany 12.3%• Others 26.9%

PrivateInvestors

KfWBanking Group

1) As of 31/12/2013; Incl. other regions and unidentified institutional investors

67,8%11,2%

21,0%

InstitutionalInvestors

SHAREHOLDER STRUCTURE: FREE FLOAT 79 %1)


Revenue 2007 2008 2009 2010 2011 2012 2013Group 54,043 54,474 46,201 51,388 52,830 55,512 54,912Mail 14,802 14,627 14,161 13,913 13,974 13,972 15,261Express 13,874 13,637 9,917 11,111 11,691 12,778 11,821Global Forwarding, Freight 12,959 14,179 11,243 14,405 15,100 15,666 14,817Supply Chain 14,030 13,430 12,052 13,061 13,223 14,340 14,227CC / Other / Cons -1,623 -1,399 -1,171 -1,046 -1,177 -1,244 -1,214

Reported EBIT 2007 2008 2009 2010 2011 2012 2013Group 1,712 -966 231 1,835 2,436 2,665 2,861Mail 1,897 2,188 1,391 1,120 1,107 1,048 1,286Express -272 -2,194 -790 497 916 1,110 1,082Global Forwarding, Freight 383 362 174 391 440 514 476Supply Chain 312 -929 -216 231 362 419 439CC / Other / Cons -559 -393 -328 -395 -389 -426 -422

2007 2008 2009 2010 2011 2012 2013Cash flow from operating activities 5,151 1,939 -584 1,927 2,371 -203 2,988Cash flow from investing activities -1,053 -441 -2,710 8 -1,129 -1,697 -1,764Cash flow from financing activities -1,787 -1,468 1,676 -1,651 -1,547 1,199 -110Investments 2,343 3,169 1,444 1,276 1,880 2,032 1,494Depreciation, amortization and impairment losses 2,196 2,662 1,620 1,296 1,274 1,339 1,486Dividend (EUR) 0.90 0.60 0.60 0.65 0.70 0.70 0.80

DPDHL EBIT, REVENUES AND CASH FLOW HISTORY


-in EUR m-

Sustainabilityhttp://www.dpdhl.com/en/responsibility.htmlSustainabilityhttp://www.dpdhl.com/en/responsibility.html

Financial and Roadshow Calendarhttp://www.dpdhl.com/en/investors/events_and_presentations/calendar.htmlFinancial and Roadshow Calendarhttp://www.dpdhl.com/en/investors/events_and_presentations/calendar.html

Statbookhttp://www.dpdhl.com/en/investors/events_and_presentations/reporting.htmlStatbookhttp://www.dpdhl.com/en/investors/events_and_presentations/reporting.html

IR Website with current Roadshow Presentationhttp://www.dpdhl.com/en/investors.htmlIR Website with current Roadshow Presentationhttp://www.dpdhl.com/en/investors.html

Annual and Quarterly Reportshttp://www.dpdhl.com/en/investors/financial_reports.htmlAnnual and Quarterly Reportshttp://www.dpdhl.com/en/investors/financial_reports.html

Glossaryhttp://www.dpdhl.com/en/logistics_around_us/glossary.htmlGlossaryhttp://www.dpdhl.com/en/logistics_around_us/glossary.html

IR | DPDHL BUSINESS PROFILE|

FURTHER INFORMATION

PAGE 32

INVESTOR RELATIONS CONTACTS

Sarah Bowman• +1 212 381 3463 • E-mail: [email protected]

Sebastian Slania• +49 228 182 63203• E-mail: [email protected]

Daniel Stengel• +49 228 182 63202• E-mail: [email protected]

Martin Ziegenbalg, Head of Investor Relations• +49 228 182 63000• E-mail: [email protected]

Robert Schneider• +49 228 182 63201• E-mail: [email protected]

Christian Rottler• +49 228 182 63206• E-mail: [email protected]
