dpdhl group 2015 business profile

DPDHL GROUP

2015 Business Profile Investor Relations

DPDHL GROUP

2015 Business Profile Investor Relations

INTRODUCTION TO GROUP STRUCTURE, PRODUCTS AND MARKET POSITIONS

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. For each of our 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 2014 numbers unless stated otherwise. You can find links to all intra-year updates as well as any further information on p.35 of this presentation. For any further questions please do not hesitate to contact my IR team directly.

MARTIN ZIEGENBALG Head of Investor RelationsDeutsche Post DHL Group

INVESTOR RELATIONS | MARCH 2015 PAGE 2

GROUP: ORGANIZATIONAL SETUP

Group

Brands

Corporate Divisions

64m letters and 3.4m parcels each workday in Germany: 29,000 points of sale, 2,750 Packstations, 33 parcel and 84 mail sorting centers. Parcel delivery in selected international markets

Post -eCommerce-

ParcelGlobal Time-Definite-International (TDI) leader with 34% market share, serving >2.5m customers in 220 countries and territories ~ 700.000 TDI shipments per day

Express

World´s largest Air and 2nd largest Ocean freight forwarder:4.0m tons of air freight/ 2.9m TEU 3) of ocean freight in 2014. No 2 European road freight

Global Forwarding

FreightGlobal market leader, market share of 8% well ahead next biggest competitors: 13.7m square meters of warehouse space in contract logistics

Supply Chain

Group revenues 1): € 56.6bn Group EBIT1): € 2.965bn Market capitalization2): € 32.7bn Approximately 440,000 employees in more than 220 countries/territories

1) Financial year 2014; 2) As of 12/31/2014; 3) TEU = Twenty-foot equivalent unit


Dr. Frank Appel Lawrence Rosen Melanie Kreis Jürgen Gerdes Ken Allen John Gilbert

GROUP: BOARD OF MANAGEMENT

CEO DPDHL GROUP

Member since Nov.2002 CEO since Feb. 2008

Appointed until Oct. 2017

Interim: GLOBAL FORWARDING, FREIGHT

CFO DPDHL GROUP

Member since September 2009Appointed until August 2017

HUMAN RESOURCES

Member since October 2014

Appointed until October 2017

Post -eCommerce - Parcel

Member since July 2007

Appointed until June 2020

EXPRESS

Member since February 2009Appointed until February 2017

SUPPLY CHAIN

Member since March 2014

Appointed until March 2017


17,367 18,501

9,375 9,143

2,244

Germany Europe ex-Ger Americas Asia Pacific Other

GROUP: GLOBAL FOOTPRINT

Geographic revenue distribution DPDHL Group Divisional staff distribution in FTE

170,596108,890

74,573 71,21618,509

Germany Europe ex-Ger Americas Asia Pacific Other

Geographic staff distribution DPDHL GroupDGFF

44,311EXPRESS73,009

PeP164,582

CC12,507

Supply Chain146,200

Group revenue: EUR 56,630mGroup staff (FTE): 440.809


MARKET VOLUMES

Air freight (2013): 25m tonnes2

Ocean freight (2013): 34m TEUs3

Contract logistics (2013): €168bn4

International express market (2013): €20bn5

GlobalMail communication (2014): €4.6bn6

Dialogue marketing (2014): €17.0bn6

Parcel (2014): €8.8bn6

Germany

Air freight (2013): 6.4m tonnes2

Ocean freight (2013): 6.2m TEUs3

Contract logistics (2013): €49.7bn4

International express market (2013): €7.2bn5

Americas




MiddleEast/Africa





Road transport (2013): €165bn7

Europe





Asia Pacific

1) Regional volumes do not add up to global volumes due to rounding. 2) Data based solely on export freight tonnes. Source: Copyright © IHS, 2014. All rights reserved. 3) Twenty-foot equivalent units; estimated part of overall market controlled by forwarders. Data based solely on export freight tonnes. Source: Copyright © IHS, 2014. All rights reserved. 4) Source: Transport Intelligence. 5) Includes express product Time Definite International. Country base: AT, DE, DK, ES, FR, IT, NL, RU, TR, UK (Europe); BR, CA, MX, US (America); CN, HK, IN, JP, KR, SG (Asia Pacific); AF, SA, ZA (Middle East/Africa).Source: Market Intelligence, 2014, annual reports and desk research. 6) Company estimates. 7) Country base: AT, BE, CZ, DE, DK, ES, FI, FR, HU, IT, NL, NO, PL, PT, SE, SI, SK, UK. Source: MI Study DHL 2014 (based upon Eurostat, financial publications, IHS Global Insight.


GROUP: FY 2014 DIVISIONAL OVERVIEW

In EUR m Revenue EBIT EBIT margin

Post - eCommerce - Parcel (PeP) 15,686 1,298 8.3%

Express 12,491 1,260 10.1%

Global Forwarding & Freight 14,924 293 2.0%

Supply Chain 14,737 465 3.2%

Corporate Center / Other & Consolidation -1,208 -351

DPDHL Group 56,630 2,965 5.2%


#1 Europe´s largest postal provider1


Post - eCommerce - Parcel

Letter and parcel delivery in Germany Provider of German Universal Service (regulated by

Bundesnetzagentur) Selected domestic Parcel activities abroad High quality (speed & reliability) network High degree of automatization

Business model

Private as well as business customers >44m delivery addresses / drop-off points in Germany Broad customer base across all business sectors Tailored solutions for SME´s Digital solutions for marketing and mail communication (E-

POST)

Customers

Mail incumbent in Germany 63% market share in letter mail, 43% market share in

parcel market in Germany Strong e-commerce driven growth in Parcel activities German parcel market volume growth 5-7% p.a. until 2020.

Mail volume decline: ~2-3% p.a.

Market position/trends

Drive parcel and e-commerce growth in Germany Gradually expand European and international parcel and e-

commerce offering Invest in innovative services, e.g. E-POST, private

parcelbox, packstations and allyouneed.com Maintain high quality and competitive network

Strategy


OVERVIEW: Post - eCommerce - Parcel

ORGANIZATIONAL STRUCTURE Post - eCommerce - Parcel

PeP revenue mix 2014

36%

64%

Post Mail

Communication Dialogue

Marketing E-Post

eCommerceSelected domestic parcel activities in

Asia and the Americas

ParcelParcel Germany and selected

domestic Parcel activities in Europe


DHL Parcel Europe DHL eCommerce

Roll-outs leverage selected success factors from Parcel Germany, established customer relationships and global product offering

Domestic assets & activities transferred in 2014 from DHL to PeP in CZ, BE, NL and PL. Slovakia market entry in Feb. 2015

Blue Dart assets and activities in India transferred from DHL to PePin 2014

DHL Global Mail US assets & activities rebranded

International Parcel tradelanes

> 8,000 employees

> 9,000 vehicles > 100 facilities > 11,000 employees

> 9,000 vehicles > 90 processing centers, air and

ground hubs


DHL eCommerce - Parcel: ASSET SHIFTS AND STRATEGY

DHL EXPRESS


#1 International express delivery1


OVERVIEW DHL EXPRESS

Door-to-door Express delivery Self-operated infrastructure 3 main global hubs linked by intercontinental network Standardized, scheduled network >250 dedicated aircraft

serving approx. 500 airports globally

Business model

2.5m business customers Strategic focus on Small & Medium Enterprises

Customers

Presence in more than 220 countries and territories Global market leader in the international express market

with 34% market share Strong presence in high growth markets (Asia, Middle

East, Africa, Latin America)


Growing continuously with the TDI (time definite international) product

Improving service, whilst optimally utilizing the network and optimizing yield

Customer focus along all touch points

Strategy


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

The broadest international reach, based locally in >220 countries and territories

Since early 70’s, DHL expanded its global network reach, pioneering international express delivery markets (see p.16)

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

Diversified regional footprint with strong emerging market presence

Major Industries Served: Automotive Consumer Chemicals Energy Engineering & Manufacturing

Content examples: Bank Docs Contracts Certificates Invoices Manuscripts Passports Shipping Docs

Broad range of Customer Industries and Shipment Content

Financial Services LSHC Public Sector Retail Technology Textile

Clinical Trial Samples Cosmetics Electronic Components Human Blood Luxury Goods Samples Spare parts of all kinds Vaccines

43

33

17 7

Revenue per region in %

Europe

Asia Pacific

Americas

MEA


DHL EXPRESS: WHY ARE OUR CUSTOMERS USING TDI EXPRESS

INFRASTRUCTUREAccess to/for

smaller/untested markets

COST SAVINGSLower inventory levels due

to faster movementEconomies of scale

TIME SAVINGSImproved inventory

managementOvercome local

infrastructure weakness

OUTSOURCING OF NON-CORE ACTIVITYExperts in transport regulation,

customs clearance, processing and tracking shipments

SECURITYVisibility, tracking, reduced

theft risk

GLOBAL REACHDirect access to

international customer base /sourcing opportunity

EFFICIENCYDelivery speed keeps

industry moving

SERVICEIncrease customer

satisfaction


DHL EXPRESS: THE MOST INTERNATIONAL COMPANY IN THE WORLD

Canada 1977

USA 1969

Mexico 1976

Colombia 1978

Peru 1981Brazil 1978

Nigeria 1979

South Africa 1978

Angola 1984

Kenia 1980

Bahrain 1976Turkey 1981

Kuwait 1980

UAE 1977

Saudi Arabia 1976

India 1980 Vietnam 1988

China 1980 Japan 1972

Russia 1984

Taiwan 1973

Singapore 1972

Hong Kong 1973

Malaysia 1973

First-mover in International Express, market entrance date by country, e.g.:Global network covering 220 countries and territories


DHL EXPRESS: GLOBAL TDI MARKET SHARES

Continued TDI leadership across all regions outside the Americas

Global [EUR 20.1bn]

DHL TNT UPS FedEx Others

+x% Change vs 2012 MI study

44%

20%

11%

4%

21%

46%

32%

18%1%

3%

41%

25%

12%

10%

12%

Europe [EUR 6.0bn]Americas [EUR 6.8bn ] Asia Pacific [EUR 6.8bn]

+1%

+2%+1%

34%

26%

22%

6%12%

+1%Source: MI study 2014EU : AT, DE, DK, ES, FR, IT, NL, RU, TR, UKAM : BR, CA, CL, CO, CR, GT, MX, PA, PE, USAP : CN, HK, IN, JP, KR, SGGLOBAL : EU + AM + AP + (AE + SA + ZA)


DHL EXPRESS: FOCUS ON TDI

Continue successful FOCUS strategy

TDI (Time Definite International) - The premium segment within Express Industry

Time Definite = Dedicated delivery at a scheduled time of dayInternational = Cross-Border Shipment (intra- or between continents)TDI: requires dense and broad international network

TDD: Time Definite Domestic Revenue Share = Delivery at scheduled time within one country. DDI: Day Definite InternationalDDD: Day Definite DomesticACS: Air Capacity Sales (re-sale of spare capacity on dedicated fleet to optimize utilization, not sold by core Express sales teams)

DHL Express Core Product

58%12%

5%

14%

11%

2009 Revenue distribution

TDI TDD DDI DDD ACS / Other

75%

8%

3%2% 12%

2014 Revenue distribution


DHL EXPRESS: VIRTUAL AIRLINE MODEL & AIR CAPACITY SALES

Virtual Airline

Block Space Agreement, guaranteed air cargo product.

Express TDI core product, capacity based on average utilization, adjusted on a daily basis

CORE Flex & Air Capacity Sales Flex, a set amount of the Total Spare Capacity to be utilised for TDI core volume surge and/or air cargo filler traffic

Air cargo guaranteed, a set amount of the Total Spare Capacity guaranteed for priority traffic & key customers

Air Capacity Sales

Capacity Commitment

Approx. 500 airports and 22 major hubs connected through 1. Dedicated air: >250 aircrafts with 17 partner airlines on

>600 daily flights2. Purchased air: >300 commercial airlines with >1,800

daily flightsCORE

TDI CAPA-CITY

FLEX

ACS GUAR.

BSA


22%

26%

52%

0 - 90 Days (incl.Purchased Air)91 - 360 Days

Fixed

DHL GLOBAL FORWARDING FREIGHT


#1Global air freight volumes1

#2 Global sea freight volumes2


#2 European road freight volumes2


OVERVIEW DHL GLOBAL FORWARDING, FREIGHT

Specialist in air, ocean and road freight as well as industrial projects and end-to-end transport management solutions

Asset-light business model, based on brokerage of transport services

Tailored sector solutions

Business model

Established customer base including >50% of Forbes 500 companies

Strong sales focus on SMEs High diversification across regions and industries

(see p. 23-24)

Customers

Global No. 1 in air freight and No. 2 in ocean freight Presence in more than 150 countries and territories No. 2 in European road freight with presence in more than

50 countries and territories


Strategic focus on sustainable growth, customer and operational excellence as well as maximizing profitability

New operating system New Forwarding Environment (NFE) to reduce costs and provide our customers with superior service quality

Strategy


Strong market position in all three product segments

DHL GLOBAL FORWARDING, FREIGHT: MARKET POSITIONS

Air Freight volume 2013 (exports only)

(in K tons)

2,2151,134 1,092 825

DGF PanalpinaKuehne & Nagel

DB Schenker

Source: Official company publications/ estimates; MI Freight 2014; Eurostat 2014

Ocean Freight volume 2013

(in K TEU)

European Road Freight market share 2013

(in %, based on revenue)

3,578 2,807 1,891 1,495

DB Schenker

DGFKuehne & Nagel

Panalpina

3.6 2.6 1.9 1.8

DB Schenker

DHL Freight

DachserDSV


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

DHL GLOBAL FORWARDING, FREIGHT: GEOGRAPHICAL MIX

Total 2,272

Air Freight volume 2014(in K tons, exports view)

Total 2,936

Ocean Freight volume 2014 (in K TEUs, exports view)

Total €4.2 bn

Road Freight revenue 2014(in €)

41%

2%13%5%

39%

EuropeMiddle East, Turkey, AfriceNorth AmericaLatin AmericaAsia Pacific

22%

3%

8%

3%56%

8%

EuropeMiddle East, Turkey, AfricaNorth AmericaLatin AmericaAsia PacificOther

40%

26%

20%

14%

GermanyNordicsCESE& AMEASouthwest Europe


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

DHL GLOBAL FORWARDING, FREIGHT: SECTOR MIX

Share of total in %

Air Freight volume 2014(in K tons, exports based)

Share of total in %

Ocean Freight volume 2014(in K TEU, exports based)

30%

21%

13%

10%

8%

5%

2%2%

10% Technology

Engineering &Manufacturing

Life Sciences & Healthcare

Automotive

Consumer

Retail

Energy

Chemicals

Others

23%

18%

10%11%

8%

8%

7%

2%

13%Engineering&ManufacturingConsumer

Automotive

Technology

Life Sciences &HealthcareRetail

Chemicals

Energy

Others

INVESTOR RELATIONS | MARCH 2015 24

DHL SUPPLY CHAIN

#1 Global leader in contract logistics1


#1 Global air freight volumes1

#2 Global sea freight volumes2


#2 European road freight volumes2


OVERVIEW DHL SUPPLY CHAIN

Warehousing, transportation and value added services ~13.7m square meters of warehouse space; 2,400 logistics

centers, warehouses and terminals Full value chain: Planning, sourcing, production, storage,

delivery and return logistics services Key sectors including Life Science & Healthcare, Auto-

motive, Technology, Consumer goods, Retail, Energy & Chemical

Business model

Strong customer base built on long-lasting partnerships across 50 countries

Actively drive outsourcing for new customers and penetration of existing contracts providing simplicity and value-added services customized to client needs

Customers

World No.1 in contract logistics Uniquely positioned to benefit from key market trends

(outsourcing, emergence of a global market, rise of emerging markets)


Differentiation through sector specific solutions Leverage sector expertise to drive growth, especially in

first time outsourcing and in emerging markets Leverage scale advantage in overhead and customer

capabilities

Strategy


Offering Customized Solutions Across the Entire Supply Chain

DHL SUPPLY CHAIN: PRODUCT OVERVIEW

Supply Chain Consulting

Plan

Inbound

Source

Warehousing

Make

Outbound & Distribution

Deliver

Aftermarket

Return

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


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

2) Source: Transport Intelligence; figures taken from 2013 R&A except Rhenus AG and UPS which are Transport Intelligence estimates; average exchange rates from 2013 used: as at July 2014

DHL SUPPLY CHAIN: OUTSOURCED CONTRACT LOGISTICS MARKET

1,232

2017

1,022

210(17%)

2013

1,073

905

168(15%)

Outsourcing through more customer-centric services

Outsourcing through more customer-centric services

6%

3%

CAGR

In house logistics

Outsourced Contract Logistics

Total addressable market size1)EUR bn

Contract logistics market, 2013: top 10 playersMarket volume: €168 billion2)

PAGE 28

Top 10 players represent only 20% of total estimated market volume

Top 10 players represent only 20% of total estimated market volume

INVESTOR RELATIONS | MARCH 2015

DHL SUPPLY CHAIN: REGIONAL AND SECTOR MIX

Unique global presence covering 50+ 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

Revenue by Region FY 2014

Customer base broadly diversified across many industries Solutions tailored to specific industry requirements and

needs, requiring in depth sector expertise

Revenue by Sector FY 2014

Americas

13%

28% 59% Europe

Asia Pacific, Middle East & Africa.

24%

19%

20%

10%

10%

3%7%

10%

Technology

Life Sciences & Healthcare

Consumer

RetailOthers

Williams Lea

Energy

Automotive


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

BACKUP


From the founding of the modern postal system to the establishment of the world's leading logistics group (1/2)

MORE THAN 500 YEARS OF LOGISTICS EXPERIENCE

200019501490 1950 1960 1970 1980 1990 2000

Modern postalsystem founded

Deutsche Bundespost founded

Dalsey, Hillblom and Lynn found DHL

DHL expands networkglobally

DP 1st investment in DHL

DP acquires Danzas& AEI

Ocean Group & NFC merge to Exel

DP AG goes public


Rebranding to DPDHL Launch of Strategy 2015

From the founding of the modern postal system to the establishment of the world's leading logistics group (2/2)

MORE THAN 500 YEARS OF LOGISTICS EXPERIENCE

2005 2007 2009 2012 2013 2014

Deutsche Post acquires DHL

2002 2006 2008 20102003

DHL offers express & logistics solutions

DP acquires Exel

DP launches excellence program First Choice

DHL exits US Domestic Express Business

Appointment of Frank Appel (CEO) and Larry Rosen (CFO)

Sale of Postbank completed

Introduction of Strategy 2020


SHAREHOLDER STRUCTURE: FREE FLOAT 79 %1)

Shareholder Structure

1) As of 31/12/2014; Incl. other regions and unidentified institutional investors

Identified institutional investors by region2)

USA 13.7% Great Britain 16.3% Germany 11.0% Others 24.8%

11.6%PrivateInvestors

KfWBanking Group

65.6%13.4%

21.0%

InstitutionalInvestors


DPDHL GROUP REVENUE, EBIT AND CASH FLOW HISTORY

Revenue 2007 2008 2009 2010 2011 2012 2013 2014Group 54,043 54,474 46,201 51,388 52,829 55,512 54,912 56,630PeP 14,569 14,393 13,912 13.913 13,973 13,972 15,291 15,686Express 13,874 13,637 9,917 11,111 11,691 12,778 11,821 12,491Global Forwarding, Freight 12,959 14,179 11,243 14,341 15,118 15,666 14,787 14,924Supply Chain 14,317 13,718 12,183 13,061 13,223 14,340 14,227 14,737CC / Other / Cons -1,676 -1,453 -1,054 -1,038 -1,176 -1,244 -1,214 -1,208

Reported EBIT 2007 2008 2009 2010 2011 2012 2013 2014Group 2,133 -966 231 1,835 2,436 2,665 2,865 2,965PeP 1,976 2,179 1,391 1,120 1,107 1,048 1,286 1,298Express -272 -2,194 -790 497 916 1,110 1,083 1,260Global Forwarding, Freight 409 362 174 383 440 514 478 293Supply Chain 577 -920 -216 231 362 419 441 465CC / Other / Cons -557 -393 -328 -395 -389 -423 -421 -352

2007 2008 2009 2010 2011 2012 2013 2014Cash flow from operating activities 5,151 1,939 -584 1,927 2,371 -203 2,989 3,040Cash flow from investing activities -1,053 -441 -2,710 8 -1,129 -1,697 -1,765 -1,087Cash flow from financing activities -1,787 -1,468 1,676 -1,651 -1,547 1,199 -110 -2,348Investments 2,343 3,169 1,444 1,276 1,880 2,032 1,486 1,859Depreciation, amortization and impairment losses 2,196 2,662 1,620 1,296 1,274 1,339 1,337 1,381Dividend (EUR) 0.90 0.60 0.60 0.65 0.70 0.70 0.80 0.85

-in EUR m-


IR Website with current Roadshow Presentation http://www.dpdhl.com/en/investors.html

Annual and Quarterly Reports http://www.dpdhl.com/en/investors/financial_reports.html

Statbook http://www.dpdhl.com/en/investors/events_and_presentations/reporting.html

Financial and Roadshow Calendar http://www.dpdhl.com/en/investors/events_and_presentations/calendar.html

Sustainability http://www.dpdhl.com/en/responsibility.html

INVESTOR RELATIONS CONTACTS & WEBLINKS

Martin ZiegenbalgHead of Investor Relations+49 228 182 [email protected]

Robert Schneider

+49 228 182 [email protected]

Sebastian Slania


Sarah Bowman

+1 212 381 3463 [email protected]

Christian Rottler



dpdhl group 2015 business profile

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