Deutsche Post DHL UBS Best of Germany Conference

Deutsche Post DHL 

UBS Best of Germany Conference 

Martin Ziegenbalg, Head of Investor Relations 

New York, 14 - 15 September 2011

Highlights 

Operational 

performance on track 

• EBIT growth of 56% in 

H1 2011 

• 2011 on track towards 

the upper end of our fullyear 

guidance range 

• Major restructuring is 

completed 

• Taking full benefit of 

globalization and 

outsourcing trends 

Clear strategic 

ambitions and targets 

• Strategy 2015: 

– Provider of choice 

– Employer of choice 

– Investment of choice 

• MAIL: stabilization of 

EBIT at ~ € 1bn, key 

driver parcel growth 

• DHL: 13–15% EBIT 

CAGR in 2010–15, key 

driver fast growing 

regions 

Martin Ziegenbalg – New York, 14-15 September 2011 – UBS Best of Germany Conference 

Leverage our 

growth potential 

• Organic growth driven by 

a focused business 

portfolio 

• Leading market position 

in key growth regions 

• Solid liquidity and 

balance sheet position 

Deutsche Post DHL | Page 

2

Agenda 

Performance on track, clear strategic ambition and targets 

MAIL: strategic levers for EBIT stabilization in place 

DHL: strong positioning in structural growth markets 



3

Deutsche Post DHL at a Glance 

2010 key figures Group: Sales: € 51,481mn; EBIT 1) : € 2,205mn; Employees 2) : 421,274 

Domestic German Mail 

and Parcel 

Sales: € 13,821mn 

EBIT1) : € 1,152mn 

Empl. 2) : 146,365 

The postal service 

for Germany 

1) Underlying EBIT; 2) Average FTEs FY 2010 

International and 

Domestic Express 

Sales: € 11,111mn 

EBIT1) : € 785mn 

Empl. 2) : 88,384 


Global Air, Ocean and 

Road Freight 

Sales: € 14,341mn 

EBIT1) : € 390mn 

Empl. 2) : 41,729 

The logistics company for the world 

Corporate Center / Other: Sales: € 1,302mn; EBIT 1) : € -395mn; Employees 2) : 13,764 

Global Supply 

Chain Solutions 

Sales: € 13,301mn 

EBIT1) : € 274mn 

Empl. 2) : 131,032 


4

Clear Strategic Ambition 

Investment of Choice 

Provider 

of Choice 

Building a track record of solid and 

improving performance 

• 2010 results above increased guidance 

• FY 2011 on track towards upper end of 

guidance range 


Improvement in customer satisfaction 

• Stable or increased overall satisfaction in 

3/4 of recent surveys 

Divisional business development 

programs set up 

Employer of Choice 

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 


5

Group P&L H1 2011 

Continued strong performance in H1 

EUR mn 

Revenue 

EBIT 1) 

t/o Mail 

t/o DHL 

Financial result 

Taxes 

Consolidated 

net profit 2) 

EPS (in EUR) 

H1 

2010 

24,811 

765 

632 

341 

1,186 

-88 

1,828 

1.51 

H1 

2011 

25,681 

1,191 

556 

834 

-319 

-218 

603 

0.50 

Chg. 

3.5% 

55.7% 

-12.0% 

>100% 

>100% 

-67.0% 

-67.0% 

1) 2010 EBIT included non-recurring items of EUR -304mn, t/o Mail EUR -4mn and DHL EUR -300mn; 

2) Attributable to Deutsche Post AG shareholders 


NA 

• Revenue increased despite adverse fxeffects 

and divestments. Organic growth was 

+6.2% 

• EBIT improved strongly in the DHL divisions 

while MAIL was negatively affected by the 

new VAT regulation and E-investments 

• H1 2011 Financial result was impacted by 

Postbank effects of EUR -133mn compared 

to EUR +1,426mn last year 

• Tax rate at 25% 

• Consolidated net profit and EPS 

decreased only due to extraordinary 

Postbank effects in Q1 2010 


6

Full-year 2011 Guidance 

• EBIT now expected to be at the upper end of range driven by solid 

performance 

• Mail result stabilizing 

Group 

Mail 

DHL divisions 

Corp. Center/ 

Other 

2011 

EUR 2.2 – 2.4bn 

EUR 1.0 – 1.1bn 

EUR 1.6 – 1.7bn 

~EUR -0.4bn 

Upper 

end 


• 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) 


7

Overview DP DHL Finance Strategy 

Target balance sheet structure is the leading element of our finance strategy 

Fundamental 

finance objectives 

• Reliability 

• Predictability 

• Strategic flexibility 

• Low cost of capital 

• Clear steering 

metric 

1) Proposal to AGM 

Balance sheet 

structure 

Dividend policy 

Priority for use 

of excess liquidity 

Financial debt 

portfolio 


Target / maintain BBB+ rating 

• 40–60% of net profit 

(cash flow / continuity considered) 

• 2010 dividend up 8.3% to € 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 


8

Agenda 






9

MAIL: Key Figures 

Key topics 

€mn 

Revenue 

EBIT 1) 

H1 

2010 

6,771 

• Continued strong growth in Parcel Germany 

• First successful steps into digital business: 

e.g. launch of E-Postbrief, MeinPaket.de 

• New VAT regulation and investments into 

e-projects impacting Mail as expected 

• Upcoming negotiations on stamp price cap, 

universal service obligation and labor 

agreements 

mn units 


632 

1) Reported EBIT: including non-recurring items of € -4mn in H1 2010 

H1 

2011 

6,768 

556 

Chg. 

0.0% 

-12.0% 

Mail communication volumes 

2006 

Parcel volumes 

-1.6% 

8,380 8,112 8,185 7,955 7,826 

mn units 

2006 

CAGR: -1.7% 

2007 2008 2009 2010 

+4.2% 

749 753 773 761 793 

CAGR: +1.4% 

2007 2008 2009 2010 

+0.9% 

3,889 

H1 2011 

+9.5% 

405 

H1 2011 


10

MAIL: Securing Sustainable Profitability 

EBIT stabilization materializing in 2011 

Historic underlying EBIT (EUR bn) 

2.2 

2005 

1.9 

2006 

1.9 

2007 

1.6 

2008 

1.4 

2009 

1.15 

2010 

2011F 

1.1 

1.0 


Guidance 2011 

• Growing parcel contribution and more 

flexible cost structure offset ongoing 

decline in traditional mail business 

• Last effect from VAT introduction in H1 

2011 

2011 Mail EBIT 

EUR 1 – 1.1 bn 


11

MAIL: Securing Sustainable Profitability 

EUR 1bn EBIT secures Mail as a self-financing unit within the group 

Beyond 2011 

EBIT 

stabilize at 

~ EUR 1bn level 

Why EUR 1 bn? 

Cash 

generation 

D&A 

~ EUR 0.2 bn 

EBIT 

~ EUR 1bn 


Funding 

requirements 

Share of: 

Corp. costs, 

tax, dividend, etc 

Pensions in excess 

of EBIT expenses 

Investments 


12

Mail: Components of EUR 1bn in 2015 

Mail EBIT stabilization supported by structural shift to parcel 

and digital services 

2011e Mail EBIT structure 

(Guidance: EUR 1–1.1bn) 

Digital services 

and Parcel 

Classical 

letter mail 

products 


2015e Mail EBIT structure 

(Guidance: EUR 1bn) 

Digital services 

and Parcel 

Classical 

letter mail 

products 

Illustrative 


13

MAIL: Growing in Parcel & Digital Services 

Digital strategy Take our core business model into the digital world 

Mail Communication 

Dialogue Marketing 

Press Services 

E-Commerce 

Traditional 

parcel business 

Secure communication 

• E-Postbrief 


Efficient and targeted online advertising 

• Werbemanager • nugg.ad • Adcould 

Pioneer a marketplace for quality journalistic content 

• DieRedaktion.de 

Facilitating online shopping and parcel shipment 

• MeinPaket.de • DHL eParcel 

Successful integration into MAIL business in 2007 

• New parcel network (faster, more efficient, more 

capacity, more flexible pick-up times) 


14

Parcel Germany – Strategic Focus 

eCommerce will further drive parcel market growth in the next 10 years 

Enlarging scope for 

eCommerce 

• New parcel networks and 

fulfillment capabilities facilitate 

penetration of all major 

retail segments 

eCommerce segment 

penetration over time 

1) Fast Moving Consumer Goods (without food) 

Sources: Bundesverband des Versandhandels, Gesellschaft für Konsumforschung 

? 

Food 

FMCG 1) 

Fashion 

Electronics 

Media (books, 

audio, video etc.) 

Parcel market 

development 

Estimate German parcel 

market (Day-Definite) 

EUR billions 

2010 

~ 5% p.a. 

2020 


Shifting consumer behavior 

• More flexible delivery options 

lead to accelerated shift to 

online purchasing especially in 

high income groups and for 

„best agers“ 

• Distance selling share of 

German retail turnover 

continues to increase 


15

Parcel Germany – Strategic Focus 

Parcel Germany is shaping eCommerce as the leading 

service provider 

• DP DHL 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 

Source: Europäisches Handelsinstitut 


• 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 25–50 

years with high online affinity 


16

Parcel Germany – Quarterly Development 2009–2011 

Dynamic growth of Parcel Germany 

Revenues, in EUR mn Volumes, in mn units 

623 

588 

595 

768 

650 

619 

628 

yoy +8% 

835 

706 

667 

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 

2009 2010 2011 

186 

176 


179 

220 

189 

181 

184 

yoy +10% 

239 

206 


199 

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 

2009 2010 2011 

17

MAIL: Cost Contribution to EBIT Stabilization 

Upcoming negotiations on regulatory environment and wage agreements: 

Regulation 

Labor costs 

• Revision of price-cap: decision expected in Sep/Oct 2011 

• Universal Service Obligation: ongoing political process 

• Wage tariffs: current agreement expires on 31/12/2011 



18

Agenda 






19

DHL Serves Structural Growth Markets 

DHL markets outgrow GDP 

1.5–2.0X 

Real GDP Real trade 

Continuous performance 

improvement 

Achieve benchmark / sector 

leading operating margins by 2015 

or earlier for each DHL unit 


Target revenue CAGR. for 2010–2015: 

~ 7% 

Outgrowing underlying markets by 1–2% p.a. 

Driving double-digit EBIT CAGR in 2010–2015 

€ 1.45 bn 

Air ~ 6–8% 

Ocean ~ 7–8% 

EBIT CAGR 

13–15% 

~ 8–9% 

2010 2011 2012 2013 2014 2015 


20

DHL Revenue Split by Region 

All DHL divisions with unparalleled presence in fast growing regions 

DHL Q2 2011 revenue by region 1) 

54% 

Europe 

12% 

US 

19% 

Asia/Pacific 

9% 

Americas 

ex US 

6% 

Africa/Middle East 

1) 3rd party revenue 

2) Organic excludes fx-effects and inorganic effects like acquisitions and disposals 

23,1% 


DHL Q2 2011 organic 2) revenue growth 

by region 

Africa/ 

Middle East 

reported growth: 

10,6% 10,4% 

US Americas 

ex US 

7,4% 

Asia/ 

Pacific 

5,0% 

Europe 

9.6% -13.5% 2.9% 0.6% 3.0% 


21

DHL Footprint Asia 

DHL clear No. 1 in Asia 

Revenues 2010 1) 

(in €) 

(% of total) 

Employees 

Market position 

Customers 

1) 3rd party revenue Asia/Pacific; sum of DHL divisions or respective division 

7.1bn 3.1bn 2.9bn 1.1bn 

19% 29% 21% 8% 

> 60,000 > 30,000 > 10,000 > 20,000 

No. 1 No. 1 No. 1 No. 1 


> 500,000 > 86,000 > 300 


22

DHL EXPRESS: Key Figures 

Key topics 

€mn 

Revenue 

EBIT 1) 

H1 

2010 

5,488 


80 

H1 

2011 

5,715 

>100% 

Time Definite International (TDI) – key trends 

Revenues per day 2) in € m Shipments per day ‘000s 

+10.7% 

H1 10 H1 11 

Underlying EBIT margin 

1) Reported EBIT: including non-recurring items of € -272mn in H1 2010; 

2) Currency translation impacts are eliminated. Hence, 2010 and 2011 data are aggregated with the same currency rate 

460 

Chg. 

4.1% 

• Shipment growth accelerating in Q2 

• Market leadership in Asia Pacific supports 

overall profit growth 

• Further margin improvement due to strong 

revenue and volume growth as well as strict 

cost management 

+9.3% 

H1 10 H1 11 

Margin increased, second-best in the industry 

5.9% 

27.2 

6.9% 

30.1 

7.1% 

+140 bp 

485 

8.2% 7.8% 

530 

8.3% 

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 


23

DHL EXPRESS: Focus on our Core Competence TDI 

Revenue 

Shipments 

2008 2010 

61% 

19% 

Domestic = TDD + DDD International = TDI + DDI 

75% 

34% 


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 


24

DHL EXPRESS: Global Market Positions in TDI 

External Research Underlining TDI Leadership across all regions 

outside the Americas 

Americas [3,914m€] 

DHL 

16% 

UPS 

24% 

Others 

3% 

FedEx 

57% 

EEMEA [360m €] 

Others 

25% 

TNT 

12% 

UPS 

9% 

FedEx 

8% 

Europe [5,288m €] 

FedEx 

10% 

Asia Pacific [4,316m €] 


TNT 

16% 

Others 

13% 


46% 

Others 

28% 


Express‘ 

Global 

Market 

Share TDI of 

30% 

Source: Market Intelligence 2010 (FY 2009 data; ATK, MRSC); Scope: BE, CH, DE, ES, FR; IT, NL, PL, SE, UK; AE, RU, ZA; AU, CN, HK, IN, JP, KR, SG; US, CAN, MX 

TNT 

7% 

UPS 

23% 


38% 

UPS 

10% 


34% 

FedEx 

21% 


25

DHL Express Asia Pacific: Strategic Focus 

Strong market leadership in Asia Pacific supports overall 

profitable growth 

DHL is the leading 

logistics brand in Asia 

• DHL Express has clear market 

leadership in the Asian TDI 

market (2010: ~36%) 1) 

• Clear advantage in Intra-Asian 

market 

1) PA Consulting 

DHL TDI global shipment flow, H1 2011 

by origin/destination 

~50% 

of global DHL 

TDI shipments 

touch Asia 


Outbound 

Asia 

Intra- 

Asia 

Inbound 

Asia 

Other 


26


Building out our leading local capabilities and network in Asia 

Improving connectivity, 

facilitating trade growth 

Following growth westward 

North Asia 

Hub 

DHL is the 

most reliable 

and fastest 

Express 

services 

provider in 

Asia 

GoWest 


Earlybird 

Overnight 

Europe 

from Pearl 

River Delta 

Trans 

Pacific 

Flights 

Next day delivered 

everywhere in EU 

Intra-Asia and 

Trans-Pacific routes 


27


The new Shanghai Hub further strengthens DHL Express 

position across North Asia 

North Asia 

HUB (PVG) 

Hong Kong 

(HKG) 


• Opening spring 2012 

• Major customer benefit in Yangtze river 

delta as this region accounts for 35% of 

China’s total value of imports/exports 

• Major Transit time improvements across 

North Asia 

• New hub will complement DHL Express 

Central Asia Hub in Hong Kong serving 

Pearl River Delta 


28


Building on decades of experience – DHL Express remains committed to the 

International China business – serving more than 400 cities 

Country Office 

Sales Office 

Gateway 

Hub 

Express Center(s) 

Chengdu (CTU) 

Xi An (XIY) 

Beijing (PEK) 

Wuhan (WHU) 

Guangzhou (CAN) 

Xiamen (XMN) 

Dalian (DLC) 

Qingdao (TAO) 

Shenzhen (SZX) 

Shanghai (PVG) 

Fuzhou (FOC) 

Taipei (TPE) 


China 

Year Started: 1980 

No. of Employee: 6,000 

Facilities: 200 

Hong Kong 


No. of Employee: 2,100 


Taiwan 


No. of Employee: 900 



29

DHL GLOBAL FORWARDING, FREIGHT: Key Figures 

Key topics 

€mn 

Revenue 

EBIT 1) 

H1 

2010 

6,728 

152 

H1 

2011 

7,321 

19.1% 


181 

• Positive revenue and profit development 

despite unfavorable currency effects and 

volatile market environment in Q2 

• Further margin improvement achieved by 

favorable buying conditions, selective 

growth approach and efficient operations 

• Focus on further operational performance 

improvements 

1) Reported EBIT: including non-recurring items of € -4mn in H1 2010; 

2) Twenty Foot Equivalent Unit 

Chg. 

8.8% 

Key volume trends 

Air freight ‘000s Tons Export Ocean freight ‘000s TEU 2) 

1,184 

+2.4% 

H1 10 H1 11 

+6.6% 

1,212 

Gross profit increased 

H1 10 H1 11 

1,331 

+0.2% 

H1 10 H1 11 

+17.5% 

1,334 

Air freight GP/Tons Export Ocean freight GP/TEU 2) 

€412 

€439 

€200 

€235 

H1 10 H1 11 


30

DHL GLOBAL FORWARDING, FREIGHT: Strategic Focus 

Complete end-to-end solutions on asset-light basis 

Global Forwarding builds end-to-end solutions … 

• Globally all modes and combinations (Air, Sea, Road & Rail) 

• Tailored to customer needs through a sector-based approach 

• Including value added from related services and innovation 

… leveraging a unique scale … 

• Global trade lane management 

• Best price and access for our customers 

… in an asset-light model 

• Very limited investment in physical assets (transportation/storage) 

• Qualified and entrepreneurial team 

• Reliable and highly efficient processes 

Key success factors: 

• We are market leader in our industry 

• We have a second to none global footprint 

• We continuously invest into IT capabilities and innovation 

• We can accompany clients through major transformations 



31

DHL GFF: End-to-end Solutions, Example Huawei 

• Very successful, fast growing Chinese 

provider of mobile communication equipment 

• Focus on R&D, production and sales 

• Need for strong logistic backbone to capture 

revenue potential in developing countries 

Illustration 


+ 

• End-to-end logistic services ex China factory 

to multiple destinations/customer sites 

• Commitment of end customer lead time 

requirements 

• Roll out to 40 countries around the world 

START IN 2007 

TODAY 


32

DHL SUPPLY CHAIN: Key Figures 

Steady margin improvement 

Key topics 

€mn 

Revenue 

EBIT 1) 

H1 

2010 

6,348 

109 

• Revenues continue to increase due to 

upturn in existing business activity and new 

business wins 

• Contract portfolio gradually improving 

through selectivity in new signings and exit 

from unprofitable contracts 

• New business of around € 1.1bn in 

annualized revenue won in 2010 

(H1 2011: € 540mn) 

H1 

2011 

6,464 

77.1% 

1) Reported EBIT: including non-recurring items of € -24mn in H1 2010 and disposal gain on ETS in H1 2011 

2) incl. Energy, Airline Business Solutions 


193 

Chg. 

1.8% 

Revenue by sector H1 2011 

Williams Lea 

Automotive 

7% 

Technology 12% 

Others 2) 

8% 

10% 

17% 

Life Sciences 

& Healthcare 

Retail 

27% 

19% 

Consumer 


33

Outsourcing: Simplify Our Customers Supply Chain 

End-to-End Supply Chain capability: more than pure warehousing 

DHL Supply Chain Services 

Raw 

Materials 

Inbound 

Transport 

Production 

Flows 

Plan – Laying the foundation for a supply chain 

Outbound 

Transport 

Source – Getting the materials at the time required 


Warehousing 

~ 2/3 of SC sales 

Make – Supporting product manufacturing 

Store & Customize – Getting it ready to sell 

Distribution 

Deliver – Getting it where it needs to be 

Returns 

Return – Bringing it back when it’s not needed 


34

DHL SUPPLY CHAIN: Close to the Customer 

Critical success factor: understand the business of your customer 

Sector Focus 

• Sector approach is how we manage the 

business in most countries and regions 

• Dedicated Global teams established for six 

key sectors 

• Supplemented by centralized global 

management for 24 dedicated accounts 

H1 2011 Business wins by sector 

Others 1) 

Life Sciences 

& Healthcare 

8% 

Automotive 15% 10% 

9% 

1) incl. Energy, Airline Business Solutions 

25% 

38% 

21% 

Consumer 

Technology 

10% 

Retail 


Strategic Products Replication 

• Sector-specific logistics solutions 

• Global replication leveraging: 

– Global operational standards 

– Sales Sector Teams 

– Transfer of best practice 

NHS Supply Chain 

Providing above the 

wing items for airlines 

Testing and repairing 

cell phones 

Providing healthcare 

products to hospitals 


35

SUMMARY 

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 

• On track to achieve upper end of 2011 guidance range 

Martin Ziegenbalg – New York, 14-15 September 2011 – UBS Best of Germany Conference Deutsche Post DHL | Page 36

Agenda 




Appendix 



37

Group P&L Q2 2011 

Continued strong performance in Q2 

EUR mn 

Revenue 

EBIT 1) 

t/o Mail 

t/o DHL 

Financial result 

Taxes 

Consolidated 

net profit 2) 

EPS (in EUR) 

Q2 

2010 

12,795 

253 

243 

122 

-142 

-18 

81 

0.07 

Q2 

2011 

12,839 

562 

183 

471 

-158 

-101 

278 

0.23 

Chg. 

0.3% 

>100% 

-24.7% 

>100% 

-11.3% 

>100% 

>100% 

>100% 

1) 2010 EBIT included non-recurring items of EUR -250mn, t/o Mail EUR -2mn and DHL EUR -248mn; 



• Revenue increased slightly despite adverse 

fx-effects and divestments. Organic growth 

was +5.8% 

• EBIT improved strongly in the DHL divisions 

while MAIL was negatively affected by the 

new VAT regulation and E-investments 

• Q2 2011 Financial result was impacted by 

Postbank effects of EUR -77mn compared to 

EUR -22mn last year 

• Tax rate at 25% 

• Consolidated net profit and EPS increased 

due to improved EBIT margins and the 

absence of restructuring costs 


38

Free Cash Flow Q2 2011 

Free cash flow improved YoY 

EUR mn 

Cash from operating 

activities before changes 

in Working Capital 

Changes in 

Working Capital 

Net cash from operating 

activities after changes in 

Working Capital 

Net Capex 

Net M&A 

Net Interest 

Free Cash Flow 

Q2 

2010 1) 

450 

365 

-224 

-248 

-114 

-335 

1) Included restructuring cash out of EUR -61mn in Q2 2011 and EUR -381mn in Q2 2010 


-85 

-7 

Q2 

2011 1) 

398 

-81 

317 

31 

-10 

3 

• Operating cash flow before changes in 

working capital slightly below last year 

caused mainly by higher tax payments 

• FFO/Debt at 31.0% including dividend 

payment of EUR 786mn 


39

Net Debt (-) / Liquidity (+) 

Net financial liquidity reduced compared to year-end 2010 due to 

annual payment to civil servants pension fund and dividend 

EUR mn 

+1,382 1) 

-542 

-786 


+148 

+202 1) 

Dec 31, 2010 Civil Servant Dividend 

All other June 30, 2011 

Pensions 

liquidity 

effects 

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 


40

Mail – Divisional Results Q2 2011 

Strong parcel business more than offset by impacts of new 

VAT regulation and e-investments 

EUR mn 

Revenue 

EBIT 

Operating 

Cash Flow 

Capex 

Q2 

2010 

3,265 

243 1) 

267 

114 

1) 2010 EBIT included non-recurring items of EUR -2mn 

Q2 

2011 

3,254 

183 

182 

-16.7% 


95 

Chg. 

-0.3% 

-24.7% 

-31.8% 

• Stable revenue reflects parcel 

performance and good volume 

development in Mail Communication 

• Mail communication volumes: +1.3% yoy 

Parcel volumes: +9.9% yoy 

• Despite strong parcel business EBIT below 

last year’s level due to impact of new VAT 

regulation and investments in digital services 

• Operating cash flow in line with 

EBIT development 

• Capex below last year due to timing effects 


41

Express – Divisional Results Q2 2011 

Healthy EBIT growth improves margin to 8.3% 

EUR mn 

Revenue 

EBIT 

Operating 

Cash Flow 

Capex 

Q2 

2010 

2,868 

-30 1) 

255 

63 

Q2 

2011 

2,950 

244 

184 

140 

Chg. 

2.9% 

-27.8% 

>100% 


2) Currency translation impacts are eliminated. Hence, 2010 and 2011 data are aggregated with the same currency rate 


NA 

• Revenues increased due to accelerated 

international volume growth. Organic growth 

was 11.3% 

• TDI revenues per day 2) : € 31.7 (+12.4% yoy) 

Shipments per day: 548,000 (+10.7% yoy) 

• EBIT grew significantly due to revenue growth, 

higher operational efficiencies and absence of 

restructuring expenses 1) 

• Operating cash flow declined due to increased 

working capital needs to support growth 

• Higher Capex due to investments into aviation 

network 


42

Global Forwarding, Freight – Divisional Results Q2 2011 

Continued profitable growth and high cash flow 

EUR mn 

Revenue 

EBIT 

Operating 

Cash Flow 

Capex 


2) Twenty Foot Equivalent Unit 

Q2 

2010 

3,611 

99 1) 

15 

19 

Q2 

2011 

3,740 

112 

148 

-21.1% 


15 

Chg. 

3.6% 

13.1% 

>100% 

• Revenues increased despite adverse fxeffects, 

unsecure market environment, and in 

particular, lower freight rates. Organic growth 

was 7.1% 

• Air freight ‘000s Tons: 1,106 (+1.2%) 

Ocean freight ‘000s TEU2) : 686 (-1.2%) 

• Strong improvement in Freight operating 

performance 

• Gross profit improving due to better 

buying conditions 

• Improved GP and cost discipline drive EBIT 

increase; EBIT margin increasing from 2.7% 

last year to 3.0% 

• Substantial growth in operating cash flow 

primarily due to focused net working 

capital management 


43

Supply Chain – Divisional Results Q2 2011 

Revenue growth continues, excluding negative fx-effects and disposal 

of ETS business in the US 

EUR mn 

Revenue 

EBIT 

Operating Cash 

Flow 

Capex 

New gains 

Q2 

2010 

3,304 

53 1) 

-22 

47 

Contracts won – Annualized revenue 

Supply Chain 

260 


Q2 

2011 

3,191 

115 

220 

29.8% 


65 

61 

Chg. 

-3.4% 

>100% 

NA 

• Revenue below last year due to negative fxeffects 

and disposal of ETS business. 

Organic growth was 6.1% 

• Increased EBIT due to higher business 

activity, continued measures to improve 

profitability and gain on disposal of 

ETS business 

• Higher Capex investment reflecting business 

growth 


44

Dividend for FY 2010 increased to € 0.65 

Dividend development since IPO 

0,37 

0,40 

0,44 

0,50 

0,70 

0,75 

0,90 

0,60 

0,60 

0,65 

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 


• 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% 


45

P+L Impact of Postbank Transaction in 2009/10 

• Main impacts on the financial result: 

€m 

Net income from associates 

Net other finance costs/net other financial 

income 

t/o Postbank-related 

t/o not Postbank-related 

Total net finance costs/net financial income 

t/o Postbank-related 

t/o not Postbank-related 

-139 

-131 

-147 


– at equity result of Postbank 

– Postbank transaction valuation effects 

– interest component for mandatory exchangeable 

bond and cash collateral 

Q1 

20 

598 

737 

-139 

618 

757 

Q2 

26 

-34 

97 

-131 

-8 

123 

2009 

• 2010 financial result excluding Postbank related effects was -580m 

Q3 

25 

-335 

-188 

-147 

-310 

-163 

Q4 

-43 

-212 

-14 

-198 

-255 

-66 

-189 

FY 

28 

17 

632 

-615 

45 

651 

-606 

Q1 

34 

1,294 

1,414 

-120 

1,328 

1,448 

-120 

Q2 

24 

-166 

-46 

-120 

-142 

-22 

-120 

2010 

Q3 

31 

-253 

-123 

-130 

-222 

-92 

-130 

Q4 

-33 

58 

272 

-214 

25 

235 

-210 


FY 

56 

933 

1,517 

-584 

989 

1,569 

-580 

46

Changes to the P+L Impact of Postbank Transaction in 2011 

Reclassification of Postbank shares as ‘Assets held for sale’ at 

end of February 2011 

Impact 2011 

Interest 

component 

Valuation 

Share price < ~ € 22.00 

• Mark to market valuation of 

investment 

• Offset by mark to market valuation of 

derivatives 

€ -180m p.a. 

no significant impact 


Share price > ~ € 22.00 

• Value of investment capped at 

~ € 22.00 

• Mark to market valuation of 

derivatives 

€ -180m p.a. 

~ € -90m per € 1 increase in Postbank 

share price and vice versa 


47

Impact of Postbank Transaction on the P+L in Q2 2011 

Net profit excluding Postbank effects increased to EUR 355mn in Q2 2011 

EUR mn 

Consolidated net 

profit (reported) 1) 

t/o Postbank effects 

Net profit 

excluding 

Postbank effects 

H1 H1 

20102011 

1,828 

1,426 

402 


603 

-133 

736 

Q2 

2010 

103 


81 

-22 

+83.1% >100% 

Q2 

2011 

278 

-77 

355 

• 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 

• Q2 2011 financial result excluding Postbank 

related effects was EUR -81mn 

(Q2 2010 EUR -120mn) 


48

INVESTOR RELATIONS CONTACTS 

Martin Ziegenbalg, Head of Investor Relations 

• +49 228 182 63000 

• E-mail: m.ziegenbalg@deutschepost.de 

Robert Schneider 

• +49 228 182 63201 

• E-mail: robert.schneider1@deutschepost.de 

Sebastian Slania 

• +49 228 182 63203 

• E-mail: sebastian.slania@deutschepost.de 

Florian Bumberger 

• +49 228 182 63208 

• E-mail: florian.bumberger@deutschepost.de 

Daniel Stengel 

• +49 228 182 63202 

• E-mail: daniel.stengel@deutschepost.de 



49

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 AG’s 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 Company‘s judgment as of date of this presentation 



50

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