Slide 1: Q2 2024 Results
Q2 2024 RESULTS MELANIE KREIS, GROUP CFO DHL GROUP INVESTOR RELATIONS August 1st, 2024 1
Slide 2: Q2 2024 Group Highlights
Management comments: H1 performance delivered on expectations and we started seeing some first signals of improving B2B demand. As this supports our assumptions of at least slightly improving market conditions in H2, we today fully confirm our FY 2024 and mid-term guidance. Q2 2024 Group Highlights
Slide 3: B2B volumes development
Management comments: As expected, cyclical B2B businesses start turning back into growth territory following a prolonged period of inventory destocking. At the same time, activity levels are showing signals of a gradual market turnaround rather than any dynamic acceleration. Across the main regions,
Slide 4: Q2 2024 Group EBIT of €1,351m (-20% yoy)
Management comments: As previously flagged, Q2 performance was in line with expectations and the trends observed in Q1. EBIT decline in Express is mainly driven by prolonged subdued global B2B volume development while B2C shipments reflect our yield focus. Supply Chain stands out with steady top- an
Slide 5: Express H2 perspectives
Management comments: Express is expected to be a key driver of the higher EBIT run rate in H2, as reflected in our FY 2024 guidance. Besides the ongoing contribution of yield discipline and cost and capacity management, we expect the acceleration in H2 to be driven by usual seasonality. In addition,
Slide 6: Global Forwarding, Freight
Management comments: Despite the upturn in spot rates in Q2, GP/TEU was stable q-o-q as freight rate movements influenced forwarding businesses on both buying and selling side. In Air Freight, markets are particularly tight in Asia reflecting ongoing strong e-commerce demand as well as spillover eff
Slide 7: Post & Parcel Germany
Management comments: The new Postal Law has come into force in Germany on July 19th, 2024. From a financial perspective, the law creates more adequate conditions mainly regarding mail pricing regulation and delivery requirements under the USO. This allows Deutsche Post to continue to ensure universa
Slide 8: Cash Flow Statement
Management comments: The main observation on Q2 FCF is that capex control led to €264m lower cash outflow on investments, allowing us to largely offset the €-342m yoy reduction in EBIT. Higher working capital, reflecting volume growth and higher freight rates in DGFF, is being balanced by higher dep
Slide 9: Capex management
Management comments: Capex and hence Capex/revenue showed an unusual peak in FY 2019 related to the B777 investment program in Express. Investments normalized as expected after that until FY 2022. With volume declines due to the prolonged inventory destocking cycle from late 2022 to mid 2024, we suc
Slide 10: Factors influencing 2024 guidance
Management comments: H1 2024 developed in line with the expectations set out in our FY 2024 guidance. B2B volumes did not see any meaningful acceleration in H1 yet, as expected. At the same time, there are first positive signs emerging that support our assumptions for improved market conditions in H
Slide 11: FY 2024 EBIT guidance bridge
Management comments: With H1 EBIT of close to €2.7bn, our FY 2024 guidance implies an EBIT acceleration in H2 to drive a >€600m step-up in H2 EBIT vs H1. As shown here, around half of the step-up towards the low end of guidance is actually driven by sequential seasonality based on patterns from norm
Slide 12: 2024 and mid-term guidance confirmed
Management comments: FY 2024 and mid-term guidance remains unchanged as H1 developments were in line with our assumptions and first signals of the expected improvement for H2 are gradually emerging. As shown on the previous page, we expect the sequential step-up towards the low end of the 2024 guida
Slide 13: Wrap-up
Management comments: As reflected in our FY 2024 guidance, we expect usual seasonality alongside continued cost and yield measures to allow us to deliver on the low end of our FY 2024 guidance – with the strength of the expected cyclical improvement to determine how much we will be able to move up w
Slide 14: Strategy 2030
INTRODUCTION OF STRATEGY 2030 24 SEP 2024 10.30 AM CEST (FOR INVESTORS/ANALYSTS) HYBRID DHL Group Investor Relations 1 1 14
Slide 15: Appendix
APPENDIX Q2 2024 RESULTS | DHL GROUP INVESTOR RELATIONS | 1 AUGUST 2024 15 15
Slide 16: Group P&L
Group P&L Q2 2024 developments in line with expectations in €m Group P&L Q2 2023 Q2 2024 yoy Revenue 20,094 20,639 +2.7% EBIT 1,693 1,351 -20.2% Income Taxes -442 -345 +21.9% Net Profit attributable to DPAG shareholders 978 744 -23.9% Basic EPS (in €) 0.82 0.64 -22.0% By way of a resolution of the B
Slide 17: Supply Chain
Supply Chain Well on track to deliver another year of record profits +3% 6% Q2 2024 yoy Q2 2024 Revenue growth EBIT margin ▪ Steady topline growth, driven by strong pipeline of new business gains, mainly in Life Sciences & Healthcare, Retail and e-fulfillment ▪ DSC demonstrating resilience of busine
Slide 18: eCommerce
eCommerce Attractive structural e-commerce growth; currently in network expansion & investing phase +4% 4% Q2 2024 yoy Q2 2024 Organic revenue growth EBIT margin ▪ Intact volume growth as structural B2C trend offsets cautious ~140k 96% consumer spending: like-for-like Q2 2024 B2C volume +14% yoy in
Slide 19: Post & Parcel Germany
Post & Parcel Germany Structural e-commerce trend remains intact and is reflected in the continued parcel growth +5% +9% Q2 2024 yoy Q2 2024 yoy Parcel Germany volume Parcel Germany revenue -6% €121m ▪ Parcel volume and revenue growth in Q2 reflected structural e-commerce trend, strong pricing and o
Slide 20: Post & Parcel Germany (1/2)
Post & Parcel Germany (1/2) New postal law enables us to continue the transformation from mail to parcel in a profitable and self-sufficient way towards an EBIT of >€1bn as of 2025 Key Elements Assessment vs old law Timeline Enlarged scope (ex-ante products) Letters (national and export), partial se
Slide 21: Post & Parcel Germany (2/2)
Post & Parcel Germany (2/2) … but new postal law also has some drawbacks and missed opportunities Key Elements Assessment vs old law Timeline Partial access Volatile external injection Mail competitors can inject small parcel In force since July 19th, increases unit costs in USO shipments (Warensend
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