Slide 1: Q3 2022 Results
Q3 2022 RESULTS FRANK APPEL, GROUP CEO MELANIE KREIS, GROUP CFO 8 NOVEMBER 2022 1
Slide 2: CEO Update
CEO Update FRANK APPEL, GROUP CEO Q3 2022 RESULTS | DEUTSCHE POST DHL GROUP INVESTOR RELATIONS | 8 NOVEMBER 2022 2 2
Slide 3: Executive Summary
Management comments: DPDHL Group delivered a strong Q3 2022 performance with yoy increases in Group revenue, EBIT and FCF. Once again, the broad Group portfolio provided an advantage as we saw, as expected, an improvement in B2C yoy comparison versus H1 while B2B volumes reflected the gradually soft
Slide 4: Post lockdown normalization is nearing completion for B2C / e-commerce
Management comments: B2C volumes saw a significant acceleration during the pandemic with H1 2021 marking the highest comparison base. 2022 has shown the expected normalization pattern, with a significant improvement in the Q3 yoy comparison from the more pronounced declines in H1. Hence, post lockdo
Slide 5: B2B volume development reflecting gradually slowing macro environment
Management comments: B2B volumes have continued to soften in Q3, with Air (AFR) and Ocean Freight (OFR) showing a stronger decline than in Q2. In DHL Express, TDI B2B volumes declined slightly less yoy. In the OFR and AFR markets, this slowing demand has eventually initiated the long-expected normal
Slide 6: Executing on established levers to proactively manage macro slowdown
Management comments: Our strong Q3 performance also shows that we have been reacting well to the gradual softening of B2B demand we have seen so far. We have already gone through demand downturns across our portfolio in the past and are now again executing on our well-proven levers to cushion demand
Slide 7: Environment Social Governance
Management comments: Next to managing the shorter-term macro uncertainties, we continue to fully execute on the wide range of ESG targets and related measures. Based on the clear priorities provided by our Sustainability Roadmap, we have numerous initiatives gaining scale throughout the group as the
Slide 8: Great Company to Work for All
Management comments: With the ambition to be “Employer of Choice“ at the heart of our Group strategy and three bottom lines, we measure employee satisfaction and engagement through our annual internal survey (EOS = Employee Opinion Survey) but also through reviews by independant bodies. Having ranke
Slide 9: CEO conclusion
Management comments: DPDHL Group has reached a sustainably higher performance level, supported by structural B2C trend acceleration. Nevertheless, the macro-economic environment remains as usual a relevant external factor. In light of currently increased risks, the Group is already executing on its
Slide 10: Financials & Outlook
Financials & Outlook MELANIE KREIS, GROUP CFO Q3 2022 RESULTS | DEUTSCHE POST DHL GROUP INVESTOR RELATIONS | 8 NOVEMBER 2022 10 10
Slide 11: Q3 2022 Group P&L
Management comments: Group revenue growth includes the automatic effect of fuel surcharges and other well- established mechanisms to pass through cost inflation. While these effects inflated Group revenue, they are neutral on EBIT, leading to a technical dilution in margin. Foreign exchange rate mov
Slide 12: DHL Express
Management comments: B2C volume showed a sequential improvement yoy in Q3 after lapsing the strongest comparison base in H1. We are planning as usual for a seasonal uplift towards peak season in B2C while B2B weight is expected to soften in line with generally weakening macro trend. Given the curren
Slide 13: DHL Global Forwarding, Freight
Management comments: AFR and OFR rates started to decline during the summer. Recovering capacity encountering weakening demand led to a more balanced market and reduced disruptions. In this context, we did not see the usual peak season in OFR and have also not been planning for any meaningful peak s
Slide 14: DHL Supply Chain
Management comments: Revenue grew across all three regions EMEA, Americas and APAC as a result of favorable trading across all sectors, reflecting strong service quality for existing customers as well as successful start up of new business. The largest contributors to new business wins of €385m (ann
Slide 15: DHL eCommerce Solutions
Management comments: Expected B2C normalisation is coming to pass as anticipated, having lapsed the strongest e- commerce base effects in H1. As in our other B2C operations, we are prepared for the usual annual acceleration towards peak season. EBIT margin was slightly down yoy due to increasing cos
Slide 16: Post & Parcel Germany
Management comments: E-commerce normalization continued with Parcel volume even back to growth in Q3 at +2%. Parcel revenue was further supported by price increases. For Q4, we are preparing for a peak season on roughly similar levels as last year. Mail volume decline was impacted by general and reg
Slide 17: Strong EBIT performance translating into strong cash generation
Management comments: Besides capex spending in line with plans, DPDHL is also using its strong cash flow generation capability to continue to execute on the €2bn share buy-back program with the announcement of a new €500m tranche. Strong EBIT performance translating into strong cash generation Q3 20
Slide 18: Strong balance sheet and liquidity position
Management comments: The continued strong cash flow generation has further bolstered DPDHL´s balance sheet strength. In light of the increasing macro uncertainties, DPDHL Group can build on strong balance sheet metrics and liquidity. The rise in interest rates has furthermore reduced the net present
Slide 19: 2022 Guidance update: Group EBIT expected in upper half or above previous guidance
Management comments: As it was already clear in August that the global economic environment was clouded by increased downside risks, we had summarized the expected sensitivities for 2022 EBIT for three scenarios. Based on the continued strong performance recorded in Q3, we have not seen the first sc
Slide 20: 2022 and mid-term guidance
Management comments: Considering 1) the strong 9M 2022 figures and 2) the further softening in the general market environment, we today raise our 2022 Group EBIT guidance. This is fully driven by higher expectations for DHL, while we expect P&P Germany to deliver on the lower end of its initial guid
Slide 21: Key investment highlights
Management comments: As conclusion, this slide summarizes some key investment highlights worth keeping in mind also in in times of economic uncertainties. Deutsche Post DHL Group: • is the global market leader in its core logistics businesses • offers attractive shareholder returns in dividend and c
Slide 22: Disclaimer
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 statem