Content
DPDHL Group Highlights
Page 3
Strategy 2025
Page 15
Divisional Deep-Dives
DHL Express (page 23), DHL Global Forwarding, Freight (page 29), DHL Supply Chain (page 36), DHL eCommerce Solutions (page 43), P&P Germany (page 49)
Financial Backup
Page 55
Content
DPDHL Group Highlights
Page 3
Divisional Deep-Dives
DHL Express (page 23), DHL Global Forwarding, Freight (page 29), DHL Supply Chain (page 36), DHL eCommerce Solutions (page 43), P&P Germany (page 49)
Strategy 2025
Page 15
Financial Backup
Page 55
CONSISTENT & SUSTAINABLE STRATEGIC FOCUS
LEADER IN E-COMMERCE LOGISTICS
DIGITALIZING GLOBAL
SUPPLY CHAINS
ATTRACTIVE & RELIABLE DIVIDEND POLICY
GROUP REVENUE, FY 2020
€66,806m
yoy: +€3,465m (+5.5%)Divisional revenue growth yoy
in €m
-996
DHL ExpressDHL Global Forwarding, Freight
DHL Supply ChainDHL eCommerce
SolutionsP&P GermanyOrganic Growth Group: +8.5%
+15.6%
+7.9%
-1.8%
+22.3%
+6.9%
GROUP EBIT, FY 2020
€4,847m
yoy: +€719m (+17.4%)
in €m
B2B decline outweighed by B2C acceleration. Global network constantly adapted to market circumstances to maintain high utilization and profitability
EBIT includes €-33m special bonus
DGF GP up yoy as strong GP/unit more than offset volume declines in AFR and OFR
GP-EBIT conversion supported by strong cost focus. IT-roll-out successfully continued
EBIT includes €-13m special bonus
EBIT decline reflects 2019 China disposal and reduced customer activity - although recovering since end of Q2
EBIT includes €-62m asset impairment (Q2) and €-52m special bonus
2019 included €+275m net one-offs
First profit contribution higher than initially expected driven by stronger e-commerce growth
EBIT includes €-30m asset impairment (Q2) and €-10m special bonus
2019 included €-80m restructuring charges
EBIT increase mainly driven by e-commerce related parcel growth. Mail-to-parcel mix shift addressed by disciplined network, cost and yield measures
EBIT includes €-51m special bonus
StreetScooter
FY 2020: €-318m. FY 2019: €-115m
EBIT includes €-7m asset impairment (Q2), €-4m special bonus
DPDHL Group: Strategy 2020 delivered Leading to better mix …
Revenue, in €bn
FY 2013
*includes DSC China and Williams Lea Tag disposal
DHL ExpressDHL Global Forwarding, Freight (DGFF)
DHL Supply Chain* (DSC)
DHL eCommerce Solutions (DeCS)
Post & Parcel Germany
t/o Parcel Germany
FY 2020
Consistent growth in DHL Express core TDI product
DGFF and DSC development reflects selective growth approach over the period as well as China and Williams Lea Tag disposals in DSC
New division DeCS contributes €5bn in 2020
P&P Germany revenue up as Parcel growth offset mail decline
DPDHL Group: Strategy 2020 delivered … and higher profitability
EBIT Margin, in %
14,4% DHL Express
EBIT Margin: DSC adjusted for 2019 one-offs, DGFF for NFE write-down in 2015 Until 2017: P&P values include business activities which are now under DeCS
Post & Parcel GermanyGROUPDGFF DSC DeCS
Group margin up >200bps under Strategy 2020
Strong increase in DHL Express
P&P Germany fully recovered
DGFF started upward trend
DSC impacted by 2020 circumstances
Profitable DeCS contribution; division created in 2019
Further improvement embedded in 2021/23 guidance
2020 summary: Operating EBIT growth of 34% - setting underlying base for 2021-23 growth guidance
5.427
FY 2019 Reported EBIT
4.128
2019 One-offs & StreetScooter*
2019 excl. One-offs & StreetScooter
2020 Operating Performance
2020 EBIT excl.
One-offs & StreetScooter
2020 One-offs**
*2019 One-offs: €+426m DSC China disposal, €-151m DSC restructuring costs, €-80m DeCS restructuring costs, €-115m StreetScooter **2020 One-offs: €-163m special bonus payment (Q3); €-99m asset impairments triggered by lockdown (Q2)
2020 StreetScooter
4.847
FY 2020 Reported EBIT
Introduction of 2021 and 2023 guidance
in € bn
>6 7.5-8.5
P&P Germany ~1.6
Group Functions ~-0.4
Free Cash Flow 2021-2023 cumulative
Gross Capex (excl. leases) 2021-2023 cumulative
9.5-10.5
Free Cash Flow
~2.3
Gross Capex (excl. leases)
~3.4
Tax Rate
26-28%
Base assumptions:
B2C growth normalizing in course of 2021
Continued and gradual B2B recovery globally
Strong balance sheet and liquidity position
Leases
Related to multi-year commitment on operating assets
in €m
1.5x
Net Debt / EBITDA (Dec 31st, 2020)
Net Debt
LIQUIDITY
No financial covenants on bonds and syndicated credit facility
€4.5bn
Cash & cash equivalents (Dec 31st, 2020)
€750m
Early redemption of bond due in April in
January 2021
€2.0bn
Syndicated credit facility runs until 2025 (undrawn)
Maturity Profile, Senior Bonds
>€1.3bn
Bilateral uncommitted credit lines (undrawn)
Average time to maturity 5.4 years
€m
750 | ||||
750 | 700 | 750 | 750 | 750 |
500 | 500 | 500 | 500 |
2021
2022
2023
2024
2025
EBITDA
New bonds issued on May 13th 2020
2026
2027
2028
Coupons: 0.375% (6-year), 0.75% (9-year), 1% (12-year)
2029
2030
2031
2032
Sustainable improvement in cash generation puts us in position to balance growth investments and shareholder returns
2010
2011
2012
2013
2014*
2015
2016*
2017*
2018
*2014: Adjusted for voluntary pension funding (€2bn) and non-recurring items; Adjusted for voluntary pension funding (2016: €1bn, 2017: €0.5bn)
1.422 In line with Finance Policy principles, new Share Buyback program announced on March 8th:
Long-standing Finance Policy provides definition of excess liquidity and clear principles on its usage
Strong 2020 FCF lead to significant excess liquidity generation in 2020
Size: up to €1bn
Schedule: 12 months
Start: March 2021
2019
2020
Underlying Payout Ratio 1)
Shareholder return based on strong operating performance - Executing on our Finance Policy
Proposed dividend increase to €1.35 for FY 2020, up 17% yoy
€1,35
2010
60%
40%
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Dividend payment of €1.7bn to DPDHL shareholders, subject to approval of AGM on May 6th
1) Adjusted for non-recurring items when applicable
FINANCE POLICY
Target / maintain rating BBB+
Dividend payout ratio to remain between 40-60% of net profit (continuity and Cash Flow performance considered)
FY20 dividend proposal: €1.35; 49% pay-out
Excess liquidity will be used for share buybacks and/or extraordinary dividends
€1bn share buyback program announced
CONNECTING PEOPLE. IMPROVING LIVES.
Content
DPDHL Group Highlights
Page 3
Strategy 2025
Page 15
Divisional Deep-Dives
DHL Express (page 23), DHL Global Forwarding, Freight (page 29), DHL Supply Chain (page 36), DHL eCommerce Solutions (page 43), P&P Germany (page 49)
Financial Backup
Page 55
Strategy 2025 - Sustainability is integral along all dimensions
Our PurposeConnecting people, improving lives
Our Vision
We are THE logistics company for the world
Our Values
sustainable behavior
Respect & Results
Our Mission
Excellence. Simply delivered.
Along the three bottom lines in a sustainable way
Enabled by Common DNA
Our Business Unit focusStrengthening the profitable core
Supported by Group functions
Digitalization
Our purpose guides our efforts and sense of responsibility
Our values are in line withWe want to achieve our mission sustainably along the triple bottom lineWe aim to create long-term value in our businesses by focusing on our profitable core
Managing along integrated bottom lines since 2009 - Particularly important and successful in 2020
EMPLOYER OF CHOICE
Number of employees increased by +20k to 570k in 2020
Employee Opinion Survey (EOS) shows record employee engagement score
SUSTAINABLE DEVELOPMENT
37% improvement in Carbon Efficiency (2007 base year), up further 2 index points in 2020
PROVIDER OF CHOICE
Keeping our customers' supply chains running despite COVID-19 challenges
Net Promoter Scores (NPS) further increasing
SBB announced
Broad range of e-commerce offerings across the Group
Domestic delivery
Germany
P&P Germany
>40%
Parcel Market Share
~5.9m
Parcels per day (2020)
>100k
Parcel Business customers
~6,650
Parcel Lockers
International
Cross-Border delivery
Deferred
DHL eCommerce Solutions
12
Countries with own domestic parcel delivery, t/o 8 in Europe (UK, NL, BE, SE, PL, CZ, ES, PT)
~1.1bn
parcels delivered in 2020
Focus
Non-TDI cross-border delivery to/from and within
Europe
European
destinations served through Parcel Connect platform - via own delivery and partners
eFulfillment
DHL Supply Chain
~50%
Growth in eCommerce new business signings
~30k
Employees active in eCommerce operations globally
Premium TDI
DHL Express
~1m
TDI shipments/Day
45%+
Express B2C Share
220+
countries & territories served with pick- up and delivery
ODD*
B2C-adapted recipient tool
* On-Demand-Delivery
What does it take to deliver 10bn vaccine doses worldwide?
Starting from Q4 2020 vaccines for emergency use are expected to be shipped around the globe; Emerging actors like governments and NGOs face similar challenges in orchestrating vaccine distribution as for PPE - yet the stakes are even higher.
10+ bn vaccines needed
7.8 bn
~70% ~1.8
global populationimmunization in population to achieve herd immunity
avg. doses/person needed for immunization
Source: World Bank; DHL; McKinsey
200,000
Movements by pallet shippers
15,000,000
Deliveries in cooling boxes
15,000
Flights
Vaccines' global supply chains show that globalization ispart of the solution
DIGITALIZATION @DPDHL GROUP
As seen at IR Virtual Tutorial…
DGF myDHLi
Further ongoing initiatives
Packstation expansion: 7000 by 2021
DSC Accelerated DigitalizationPostal mail notificationData AnalyticsParcel delivery: 15min notification & live trackingMobile stamps
Content
DPDHL Group Highlights
Page 3
Strategy 2025
Page 14
Divisional Deep-Dives
DHL Express (page 23), DHL Global Forwarding, Freight (page 29), DHL Supply Chain (page 36), DHL eCommerce Solutions (page 43), P&P Germany (page 49)
Financial Backup
Page 55
DHL EXPRESS
Profitable Core
Time Definite International (TDI) service for premium, cross-border delivery of time-critical parcels and documents
DHL Express: 2020 key numbers and 2021 outlook Continued B2C growth, B2B recovering
TDI Shipments/Day
in thousands
FY 2019
1.290
1.097
EBIT
in €m
2.751
Q4 2019
Q4 2020
FY 2020
EBIT Margin
14.4%
FY 2019
FY 2020
FY 2019
FY 2020
2021 topline drivers:
B2C volumes expected to continue to grow from higher 2020 base - growth rate expected to normalize in course of the year
B2B volume back to growth in Q4, expect gradual B2B recovery to continue in line with global trade/GDP trend
2021 Management focus & outlook:
Further gradual capacity extension to cater for expected continued growth
Yield increases and optimization based on well established mechanisms
Expect Express to deliver EBIT growth on top of 2020 record results
Express TDI volume growth, quarterly growth ranking
#1 EUAM
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FY 2020: +8.7%
FY 2016: +7.6%
FY 2017: +9.9%
FY 2018: +7.5%
FY 2019: +5.7%
E-commerce is a profitable growth driver for DHL Express
2013
B2C
volume Share
EBIT margin
Network CharacteristicsB2C CharacteristicsProfitability Impact | ||
Shipments per Day Weight per Shipment Revenue per Kilo First mile Hub sort Airlift | Volume growth drives better utilization of existing network Lower weight per shipment Higher RpK related to lower WpS More pieces per stop at pickup Better utilization of existing infrastructure, with high degree Better utilization of existing capacity, with lower WpS being advantageous | |
Last Mile | Optimize residential delivery via On Demand Delivery & Drop Off Locations and increased delivery density due to B2C Growth | |
DHL Express:
To serve our global network, we run more than just an airline
Dedicated Air
Purchase Air
>2200 500
>280
aircrafts
15
partner airlines
>300
commercial airlines
Dedicated Air: Snapshot of DHL network flights
daily flightsairports
Dedicated fleet (without feeders)
21
air hubs
(3 global; 18 regional)
2010: ~150 planes
2020: >240 planes
OwnedLeased
DHL GLOBAL FORWARDING, FREIGHT
Profitable Core
International transportation of Air Freight, Ocean Freight and Road Freight including Customs Clearance and related value-added services like warehousing, cargo insurance, etc.
Market Position (2020)
Air Freight #1
Ocean Freight #2
Road Freight (EU)
Leading position in a highly fragmented market
Revenue Mix, FY 2020
Air FreightRoad Freight
39%27%
Ocean FreightOthers
22%12%
DGFF: 2020 key numbers & 2021 outlook B2B volumes starting to recover
All FY figures, yoy
Air Freight (AFR)
Volume
-11.0%
Gross Profit
+17.2%
Gross Profit/Unit
+31.6%
Ocean Freight (OFR)
Volume
-10.8%
Gross Profit
-1.5%
Gross Profit/Unit
+10.3%
EBIT
in €m
590
EBIT Margin
3.7%
FY 2019
FY 2020
FY 2019
FY 2020
2021 topline drivers:
Expect gradual volume recovery to continue in line with broader global GDP trend
Rebalancing of market capacities over time will eventually drive GP/unit towards normalization
2021 Management focus & outlook:
Use network strength to provide customers with capacity in tight AFR and OFR markets
Harvest efficiency gains for sustainable GP-EBIT conversion improvements as volumes recover
Expect DGFF to deliver EBIT growth on top of 2020 record results
DGFF - Emerging new rivals do not pose imminent risk of disruption
DigitalCapabilities
Digital Forwarders
Gaps to close
• Back-end IT infrastructure
• Own setup (physical) globally
• Operational expertise
• Global sales force
• Carrier relationships
Gaps to close
• Modern, fully-integrated IT infrastructure
• Digital customer interaction tools
Incumbents
Global network
The lifecycle of a shipment is a complex process and technology investments are key to success
Manage documents for import compliance & customs process
Step in the lifecycle of a shipment
System or technology support
CargoWise1 Roll-out progressing very well Benefit realization started
Ocean Freight | Air Freight |
considered | >80% |
completed | completed |
Complete CargoWise1 roll-out by 2021
With IRR & Digital Customer Interaction DGF is enhancingcustomer experience while increasing operational efficiency
myDHLi
360° VISIBILITY
COLLABORATION
FULL ACCESS
MANAGED BY CUSTOMER
External
DOCUMENTS
QUOTE + BOOK
TRACK
ANALYTICS
IT Renewal Roadmap (IRR): Our Digital Backbone established
Internal
Paperless forwarding
Quotation tool
Track + trace / shipment visibility
… and many more
DGFF FINANCIAL OUTLOOK
EBIT/GP Conversion improvement of 100-200 bps p.a. (with basis from 2018)
Long-term target: 30% DGF conversion. 5-6% DGFF EBIT Margin
Initial* market growth assumptions (2018-25): Air Freight +1-3%
Ocean Freight: +2-4% Road Freight: +3-4%
Market significant down in 2020. Return to initial assumption depending on recovery shape beyond 2020.
Capex: Flat / slightly increasing from FY 2020 levels (€104m)
Complete CargoWise1 roll-out by 2021. Ocean Freight considered completed. Air Freight >80% completed.
*as introduced at Capital Markets Day in 2019
DHL
SUPPLY CHAIN
Profitable Core
Manage supply chains to reduce complexity for our customers. Our profitable core includes warehousing, transportation as well as key solutions like e-Commerce, Lead Logistics Partner (LLP), Service Logistics, packaging and real estate solutions
Market Position (2019)
Market share: Top 5 players in contract logistics
DHL: 5,9%XPO Logistics: 2,4%
Kuehne+Nagel: 2,2%CEVA: 1,7%
Hitachi
Transport System: 1,6%
Source: company estimates; Transport Intelligence. Market share is presented on the basis of divisional revenue.
Revenue Mix, FY 2020
Retail28%Consumer
23%
Technology
Auto-mobility
Life Sciences & Healthcare
Engineering & Manufacturing
Others
DHL Supply Chain: 2020 key numbers and 2021 outlook Gradual recovery of B2B customer activities
FY 2020 Revenue yoy by sector
TechnologyLife Sciences &
HealthcareRetailConsumerEngineering & ManufacturingAuto-mobility
1%
2021 topline drivers:
Organic revenue growth yoy
Q1
Q2
Q3
Q4 5%
-13%
Strong new business signings and gradual recovery of customer activities laying solid foundation for 2021 growth
Continued expansion of e-fulfillment capacities driven by customer requirements
EBIT
EBIT Margin
in €m
636
4.7%
FY 2019*FY 2020
2021 Management focus & outlook:
FY 2019*FY 2020
Collaborative Robotics and Data Analytics at core of digital roadmap
Expect DSC to show significant increase vs 2020 EBIT as global economic activity recovers
*excl. DSC China disposal & 2019 restructuring
DHL Supply Chain offering attractive strategic solutions across the whole supply chain
DHL Supply Chain portfolio of key solutions 1)
As the world's leading contract logistics provider we create competitive advantage for our customers by delivering exceptional operational
service as well as innovative and sustainable solutions across the supply chain.
We leverage thorough depth of knowledge of market and its dynamics, with highest standards and with a benefit of unrivaled environmental and safety credentials, along with state-of-the-art technology and an attractive portfolio of solutions.
Over 502)
12.537€m
Countries served
Revenue in 2020
~1,500 3)
~15 MIO3,4)
Locations
Square meters
1) Not exhaustive 2) Countries with significant Supply Chain revenue; 3) Data correct at December 2020; 4) Incl. DHL owned and leased warehouse space only and not customer owned facilities operated by DHL; as of December 2020
Offering globally consistent and innovative solutions to our customers through modular standardization
Best in class solutions
Flexibility to build end-to-end customized solutions at increased speed due to modular building blocks compromising solutions design, IT and Operations catering specific needs e.g. eCommerce
Operations Management System First Choice
Holistic approach to drive productivity and continuous improvement through processes, behaviors, infrastructure and tools including coaching and incentives.
Flexible automation solutions Focused deployment approach through Accelerated Digitalization Program and optimal orchestration of robotics and people resources through Robotics Hub.
High project management standards
Globally standard project management methodology ensuring smooth and fast setup of new operations
Data analytics for operational
improvements
Data is being collected in a coherent way and decisions are made by artificial intelligence e.g. warehouse labor optimization
End-to-end visibility across the whole Supply
Chain
Globally consistent operating standards Minimum standards for key processes and tools e.g. for labor management and quality defined for all operations.
Labor management Standards implemented incl. labor management tools, consistent introduction and training, allowing scaling in line with demand and labor sharing across operations.
Real time data based decision taking Standard reporting tools provide real time financial and operational insights for customers and operations enabling agility and decisions at the right level.
DSC is uniquely positioned to cater for e-commerce growth
Fully integrated end-to-end IT solution for e-Fulfillment
eCommerce is a focus product for DSC with ~20% of its global staff already working in eFulfillment operations
The 53% YoY growth in eCommerce new business in 2020 was an acceleration of the growth over past years due to the pandemic
The growth is fueled by the priority areas that DSC is focusing on:
• Pure e-commerce for brand manufacturers
• Pure e-commerce retailers / etailers, marketplaces
• Omni-channel centralized and combined B2C/ B2B fulfillment
• Regional fulfillment networks across multi user locations
DHL Supply Chain is leveraging digitalization across all operations to increase efficiency and customer value add
Accelerated Digitalization and Data Analytics (as of 12/2020)
750+ Collaborative robots deployed
Examples below:
15.000+ smart wearable devices deployed
200+ analytics projects to optimize our operations
Standard IT-Robotics integration layer DHL Robotics Hub allowing plug-and-play robotics deployment and orchestrating labor and robotics in most efficient way
Business Model Digitalization
• UK's first and Europe's largest truly digital freight platform (DFP)
• DigiHaul matches customer demand for transport load and capacity through digital platform by artificial intelligence
DSC FINANCIAL OUTLOOK
EBIT margin at ~5%
Capex outlook: Slightly increasing from FY 2020 levels (€351m) driven by new business wins and including investments in digitalization
DHL ECOMMERCE SOLUTIONS
Profitable Core
Domestic last mile parcel delivery in selected countries outside of Germany (Europe, USA and selected Asian emerging markets).
Non-TDI cross-border services primarily to/from and within Europe.
Revenue Mix, FY 2020, in €m
EuropeAmericas
2.618
1.629
Asia
593
DeCS: 2020 key numbers and 2021 outlook Continued B2C growth
Revenue growth, FY 2020
DeCS
+19% (Q4: +34%)
Netherlands
>30%
United States
>40%
United Kingdom*
>25%
South East Asia
>35%
EBIT
EBIT Margin
in €m
158
3.3%
-1.3% FY 2019
-51 FY 2019
FY 2020
FY 2020
2021 topline drivers:
E-commerce volumes expected to continue to grow from higher 2020 base - growth rate expected to normalize in course of the year
Disciplined yield management based on GRI and ship-to-profile mechanism
*Parcel business only
2021 Management focus & outlook:
Further expand and optimize domestic and cross-border networks to maintain economies of scale from continued e-commerce growth
Expect DHL eCommerce Solutions to deliver EBIT growth on top of 2020 record results
DHL eCommerce Solutions: Regions and service portfolio
AMERICAS
Nationwide domestic delivery in the United States
Cross-border from US and Canada
EUROPE
Pan-European cross-border shipping
via DHL Parcel Connect platform
Domestic delivery in 8 countries: United Kingdom, Netherlands, Belgium, Poland, Spain, Portugal, Czech Republic, Sweden
ASIA PACIFIC
Blue Dart in India: nationwide domestic courier delivery and integrated express parcel distribution
Nationwide domestic and cross-border delivery in Thailand, Malaysia and Vietnam.
Cross-border shipping from China, India, Australia and Singapore
DHL eCommerce Solutions: Key stats at a glance
Data as of 31.12.2020
E-commerce: Profitable expansion into international parcel markets
International Domestic and cross-border Parcel delivery - DHL eCommerce Solutions
1) Since 2019, international parcel operations are combined under the new eCommerce Solutions division. Prior to that, part of PeP division (DHL Parcel Europe + DHL eCommerce)
CONTRIBUTION
Expectation (CMD 2017, p.22)
Strong revenue growth driven by e-commerce trend and portfolio expansion
EBIT contribution by 2020 will also depend on trajectory of further portfolio expansion
Positive but not yet significant
EBIT contribution in 2020
2020 results:
• DeCS EBIT: €158m (3.3% margin)
• Expect further growth on this base
DeCS FINANCIAL OUTLOOK
Positive EBIT contribution in 2020 (FY 2020: €158m) Mid-term: 5-10% sales growth with gradual margin expansion towards 5% long-term margin across all businesses
Average Capex spend of ~€200m p.a. over 2019-2022
POST & PARCEL GERMANY
Profitable Core
Transporting, sorting and delivering of documents and goods-carrying shipments in Germany and export.
Market Position (2020)
~63%
Market share Mail Communication (business customers)
>40%
Market share for Parcel
Revenue Mix, FY 2020
Parcel
36%
Post
49%
International & Others
15%
P&P Germany: 2020 key numbers and 2021 outlook Parcel and Mail growth rates expected to normalize
Mail Communication &Dialogue Marketing, yoy
Volume
-9.5% (FY)
-7.1% (Q4)
Revenue
-1.2% (FY)
+1.3% (Q4)
Parcel Germany, yoy
Volume
+15.3% (FY)
+23.3% (Q4)
Revenue
+21.9% (FY)
+30.3% (Q4)
EBIT
in €m
1.592
EBIT Margin
9.7%
FY 2019
FY 2020
FY 2019
FY 2020
2021 topline drivers:
Continued Mail to Parcel mix shift - with Parcel growth rates to normalize in course of the year
E-commerce driven Parcel volumes expected to continue to grow from higher 2020 base
Ongoing yield measures for business customers in Parcel
2021 Management focus & outlook:
Business recovery fully accomplished, focus on margin stabilization through digitalization, network efficiency and yield measures to offset structural mix shift
2021 Guidance: ~€1.6bn
P&P Germany: Products and Pricing
Dialogue Marketing €1.8bn
International €2.4bn
Other €0.8bn
Ex-ante products - private customers (€1.0bn) - business customers (€1.6bn)
Partial services - business customers (€1.9bn)
Other (€0.9bn)1)
Addressed and undressed advertisement mailings, campaigns (both digital & physical)
In- and outbound Germany shipments
Press, pension services, retail
Top accounts (~470 customers) Middle accounts (~20k customers) Small accounts (~85k customers)
Private customers
1) e.g.: small items eCommerce, Philately, "Postzustellungsauftrag" Virtual Management Roadshow | Frank Appel | 29 MARCH 2021
Jul 2019: 10.6% increase for 2019-2021 period (incl. international)
2020: 3-4% through reduction of discounts
Partially increased in 2020/2021
Partially increased in 2020/2021
Depends on the product category: Partially increased in 2020/2021
Partially increased in 2020/2021
Pricing varies by contracts.
Stronger price increase than historically in 2020. Last increase: January 1st 2021.
Listed prices in retail outlets and online
Topline Germany: Standard letter stamp price development is based on regulated price cap
*implemented from July 1st 2019 onwards, taken into account in headroom calculation
NEXT REVIEW:
Expected by end of 2021 for the period starting January 2022
P&P Germany: Wage deals in Germany
Wage increases for P&P Germany employees, yoy in %
One-time payment
4.0
Current agreement applies to ~140,000 Deutsche Post tariff employees.
Contract period: Sep 1st 2020 - Dec 31st 2022
FINANCIAL OUTLOOK
P&P GERMANYStructural trend:
EBIT 2021
Guidance: ~€1.6bn
Mid-term: Slow topline growth with stable EBIT margin
Volume
Mail: -2% to -3% p.a. Parcel: +5% to +7% p.a.
Stronger Parcel growth and Mail decline seen in 2020. Expect growth rates to trend back to initial assumptions over time
Capex:
Flat / slightly increasing from FY 2020 levels (€590m)
Wage increase for tariff employees: 3% from Jan 1st 2021 and 2% from Jan 1st 2022.
Content
Divisional Deep-Dives
DHL Express (page 23), DHL Global Forwarding, Freight (page 29), DHL Supply Chain (page 36), DHL eCommerce Solutions (page 43), P&P Germany (page 49)
DPDHL Group Highlights
Page 3
Strategy 2025
Page 15
Financial Backup
Page 55
DPDHL Group at a glance
FY 2020
*average for the year
2020 Group P&L
FY 2019 | FY 2020 | vs. LY | |
in €m | |||
Revenue | 63,341 | 66,806 | +5.5% |
EBIT | 4,128 | 4,847 | +17.4% |
Financial result | -654 | -676 | -3.4% |
Taxes | -698 | -995 | -42.6% |
Consolidated net profit* | 2,623 | 2,979 | +13.6% |
EPS (in €) | 2.13 | 2.41 | +13.1% |
*after minority interest |
2020 Cash Flow Statement
in €m | FY 2019 | FY 2020 | vs. LY |
EBIT | 4,128 | 4,847 | +17.4% |
Depreciation/amortization | 3,684 | 3,830 | +4.0% |
Change in provisions | -506 | 73 | >100% |
Income taxes paid | -843 | -754 | +10.6% |
Changes in working capital | 4 | -404 | >-100% |
Other | -418 | 107 | >100% |
Operating Cash Flow | 6,049 | 7,699 | +27.3% |
Net capex | -3,474 | -2,800 | +19.4% |
Net cash for leases | -2,278 | -2,261 | +0.7% |
Net M&A | 680 | -8 | >-100% |
Net interest | -110 | -95 | +13.6% |
Free Cash Flow | 867 | 2,535 | >100% |
Cash Flow Outlook: Overview of major drivers
Main Drivers 2021 - 2023
• 2021 EBIT guidance: >€5.6bn
• 2023 EBIT guidance: >€6bn
• Increase to be driven mainly by EBIT growth
• D&A, working capital and taxes paid expected to trend slightly up in line with business growth
• Provisions in line with historical trend, mainly <€-0.2bn for pension
• No unusual meaningful other cash-outs expected
• Capex guidance, 2021: ~€3.4bn (2020: €3.0bn); 2021-23 cum.: €9.5-10.5bn
• FCF guidance, 2021: ~€2.3bn, 2021-23 cum.: €7.5-8.5bn
Capex: Only moderate increase from 2020 levels plannedto support higher volume base and expected growth, mainly in Parcel and Express
Group gross capex, in €m
3,617
2019
~3,400
~3,300
2020
2021 guidanceGuidance Yearly average 2022-2023
Group
DGFF
DSC, DecS Corp Functions
P&P, EXP
Note: Capex expectation includes full gross capex spend related to 2018 & 2020 Boeing 777 orders
Group ROCE trending further up: returns increasing on higher asset base
Increasing returns under Strategy 2015 / 2020 - positive trend continued after lease accounting rebasement
Group ROCE vs WACC 14,7% 14,1% 12,3% 11,1% 11,6% 11,9% 10,8% 6,8% 2010 2011 2012 2013 2014 2015* 2016 2017 | Under IFRS16 as of FY18 12,4% 11,4% 9,0% WACC (8.5%) 2018 2019 2020 |
*2015 EBIT adjusted for NFE-write off
ROCE = EBIT / (Total assets - current liabilities)
Balance sheet continues to show healthy leverage ratios
47.9% Net Gearing | 25.5% Equity Ratio |
1.7x (2019) Net D | 1.5x (2020) BITDA |
Net Debt / EBITDA |
9.9x
Net Interest Cover
All figures in €m, FY 2020
55,307
Total Equity & Liabilities 31.12.2020
Pension Provisions Other ProvisionsCurrent liabilitiesNon-current liabilitiesEquity
Net Debt
EBITDA
EBIT
Net interest paid
DPDHL Group Pensions - DB and DC plans
in €m
Defined Benefit ObligationDefined Benefits
Staff Costs* & Change in Provisions
* Excluding one-offs
Defined Contribution (Cash out ≈ staff costs in EBIT)
Civil Servants in Germany
*mainly outside Germany
Hourly workers & salaried employees*
Sep 30th 2020
2015 2016 2017 2018 2019 2020
Plan Assets
Dec 31st 2020
Net Pension ProvisionCurrent service costsChange in provisions
347
352
2015 2016 2017 2018 2019 2020
Discount Rate (DBO)
Sep 30th 2020
Dec 31st 2020
Germany 1.30% 0.80%
UK 1.40% 1.20%
Other
Total
1.41% 1.35%
1.06% 0.95%
Investor Relations Contact
Martin Ziegenbalg +49 228 182 63000m.ziegenbalg@dpdhl.com
Robert Schneider +49 228 182 63201robert.schneider1@dpdhl.com
Sebastian Slania +49 228 182 63203sebastian.slania@dpdhl.com
Agnes Putri +49 228 182 63207a.putri@dpdhl.com
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.
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Deutsche Post AG published this content on 29 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 March 2021 07:09:07 UTC.