Slide 1: Q3 2024 Results
Q3 2024 RESULTS TOBIAS MEYER, GROUP CEO MELANIE KREIS, GROUP CFO DHL GROUP INVESTOR RELATIONS November 5th, 2024 1
Slide 2: Q3 2024 Group Highlights
Management comments: Q3 results delivered on expectations with reported EBIT flat yoy, improving from the 20% decline in Q1 and Q2 2024. While the seasonal ramp-up in domestic B2C parcel markets is developing as expected, B2B volumes are still impacted by the subdued macroeconomic environment, in pa
Slide 3: B2B volumes development
Management comments: Air and ocean freight continue to see volume growth in Q3 as activities recover from the significant declines in the last two years. In Express, B2B volume declines have been much less pronounced throughout the cycle downturn. While B2B volume further stabilized yoy, there was n
Slide 4: Q3 2024 Group EBIT of €1,373m (+0% yoy)
Management comments: Q3 Group EBIT showed sequentially improved yoy momentum as expected. While down 20% in Q1 and Q2, reported EBIT in Q3 was flat yoy, with results including a net positive one-time effect from developments in various legal disputes of ~€70m. From a divisional perspective, EBIT was
Slide 5: Factors influencing 2024 guidance
Management comments: We have just recently reconfirmed how structural factors will continue to create attractive industry growth for DHL in our Strategy 2030 introduction. Regarding the cyclical factors, the inventory cycle seems to be gradually turning as reflected in Air and Ocean freight volume g
Slide 6: 2024 and mid-term guidance
Management comments: Based on today’s assessment of macro developments and trading, the cyclical acceleration that would have driven FY 2024 EBIT expectations towards the upper end of our previous guidance range has clearly not materialized. The overall macroeconomic environment remains rather muted
Slide 7: Strategy 2030 market growth
Management comments: With the introduction of Strategy 2030 on September 24th, we have updated our mid-term growth expectations for the key addressable markets of our five divisions. Starting with the assumption of normalized global GDP growth in line with historic levels, we continue to see attract
Slide 8: Strategy 2030 divisional growth ambitions
Management comments: Our ambition to drive >5% p.a. growth in Group revenue as part of Strategy 2030 is based on the market growth assumptions shown on the previous page as well as our target to beat market growth in all DHL divisions. The common denominator for this ambition across all divisions is
Slide 9: Dedicated efficiency and growth measures
Management comments: We have a strong focus on cost and capex discipline. However, this does not mean that we are ready to take any short-term actions that would fundamentally damage our service quality. Industry leadership in the services we provide across our divisions is a key cornerstone of our
Slide 10: Save the date: Capital Markets Day
SAVE THE DATE SITE VISIT CAPITAL MARKETS DAY LONDON, APRIL 2-3, 2025 10
Slide 11: Express
Management comments: Structural focus on premium TDI shipment profiles is reflected in yoy higher weight/shipment in Q3. Overall TDI weight/day remains up double-digit % vs 2019 levels. TDI B2B weight/day shows continued growth in APAC and sequential improvement in Europe and Americas. This heteroge
Slide 12: Global Forwarding, Freight
Management comments: Ocean Freight market tightness remains concentrated on Asia Pacific outbound trade lanes, supporting sequential improvement in GP/TEU. For Air Freight, capacity procurement is challenging on specific tradelanes as reflected in Q3 GP/ton. We have embedded lower expectations for p
Slide 13: Post & Parcel Germany
Management comments: E-commerce driven parcel growth is fully intact, also showing positive effects from our yield management. Decline rates in mail volumes have recently deteriorated, mainly driven by dialogue marketing. While we continuously reduce costs to counter the volume decline, there is inh
Slide 14: Cash Flow Statement
Management comments: The key development in Q3 was that EBIT translated very well into OCF pre working capital. As we have seen volume and rates grow in Global Forwarding, we also observe the associated higher yoy changes in working capital in that division. This is the main reason for the higher WC
Slide 15: Capex management
Management comments: Capex and hence Capex owned/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. We have successfully flexed down capex reflecting the prolonged inventory destocking cycle from l
Slide 16: ROIC
Management comments: With Strategy 2030 putting increased focus on optimized capital allocation, ROIC will be more in focus in terms of internal attention/steering and external reporting going forward. As a starting point, it is important to note that our definition of IC (Invested Capital) includes
Slide 17: Proven track record of attractive shareholders return
Management comments: We continue to offer attractive shareholder returns with our dividend policy, paying 40% to 60% out of net profit while at the same time ensuring that next year’s dividend is at least on the same level as last year, in line with our commitment to dividend continuity. Also, we co
Slide 18: Wrap-up
Management comments: Updated guidance for 2024/26 reflects our latest observations on cyclical, seasonal and structural factors: • Macro momentum remains subdued, in particular in Europe • Domestic B2C peak seasons are ramping up as expected • Core logistics activities offer attractive structural in
Slide 19: Appendix
APPENDIX Q3 2024 RESULTS | DHL GROUP INVESTOR RELATIONS | 5 NOVEMBER 2024 19 19
Slide 20: Group P&L
Group P&L Q3 2024 shows improving yoy trend but no significant acceleration yet in €m Group P&L Q3 2023 Q3 2024 yoy Revenue 19,398 20,592 +6.2% EBIT 1,372 1,373 +0.1% Income Taxes -363 -347 +4.4% Net Profit attributable to DPAG shareholders 807 751 -6.9% Basic EPS (in €) 0.68 0.64 -5.9% Q3 2024 RESU
Slide 21: Supply Chain
Supply Chain On its way to deliver another year of record profits +6% 6% Q3 2024 yoy Q3 2024 Organic revenue growth EBIT margin ▪ Solid revenue growth, mainly driven by new business wins and contract renewals ▪ Significant contribution of new business wins in Life Sciences & Healthcare, in Retail in
Slide 22: eCommerce
eCommerce Attractive structural e-commerce growth; currently in network expansion & investing phase +7% 3% Q3 2024 yoy Q3 2024 Organic revenue growth EBIT margin ~140k 95.5% ▪ 7% organic revenue growth driven by higher volume and yield management: like-for-like Q3 2024 B2C volume +8% yoy Out of home
Slide 23: Update: Price cap process
Update: Price cap process The preliminary decision on pricing headroom does not acknowledge the economic reality Developments mail basket Cumulative price increase significantly lower than inflation Proposed scope Inflation Negative economies for price of scale3 increases1 Massive decline in letter
Slide 24: 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