Slide 1: Q2 2020 Results Investor Call
acy 22 2020 RESULTS Melanie Kreis, CFO Investor Call \ . August 5", 2020 ia 4
Slide 2: Management Comments: Group EBIT back to growth in Q2
Management Comments: As pre-released, Group EBIT was back to growth in Q2. Strong EBIT growth, particularly under current circumstances, was moreover complemented by a strong cash flow performance. As a result, financial position remains strong, allowing us to continue with business investments, to
Slide 3: DPDHL Group Investment Case Fully Intact: Earnings
DPDHL Group Investment Case Fully Intact EARNINGS = Sustainable growth from diversified global market leader
Slide 4: Management Comments: Revenue growth vs. LY
Management Comments: Revenue growth vs. LY was reported +3.1%. Corrected for negative FX effects and minor M&A impacts, the organic growth was +4.6% . • P&P revenue increase was driven by strong parcel growth and yield measures as well as mail price increases outweighing the negative effect from dec
Slide 5: Management Comments: P&P mix shift from mail to parcels
Management Comments: P&P saw an accelerated structural mix change from mail to parcels in Q2. Accordingly, the planned shift of small parcels into the mail network has also accelerated. Besides the lockdown-related decline in advertisement volumes, mail volumes also saw the expected mix shift from D
Slide 6: Management Comments: Express TDI volumes
Management Comments: Although TDI volumes were overall about flat in H1, patterns have been very volatile across regions throughout this period. After declining in the first quarter, Asia Pacific came back strongly in the second quarter, while Europe and the US were affected by the regional lockdown
Slide 7: Management Comments: AFR and OFR volumes
Management Comments: AFR and OFR volumes were down yoy reflecting general market weakness. As AFR capacity shrank significantly, DHL Global Forwarding was able to secure freighter capacity early on for customers in a very tight market, leading to strong GP/t and therefore significant AFR gross profi
Slide 8: DPDHL Group Investment Case Fully Intact: Profitability
DPDHL Group Investment Case Fully Intact EARNINGS * Clear agenda for improving profitability
Slide 9: Management Comments: Solid revenue growth and EBIT increase
Management Comments: Solid revenue growth and strong cost focus led to a significant EBIT increase for the quarter: based on organic revenue growth of +4.6%, EBIT was up 18.6% driven by growth in four out of our five divisions. As indicated at the Q2 preliminary results release on July 7th, Q2 EBIT
Slide 10: Management Comments: Group EBIT up excluding one-off effects
Management Comments: As indicated with the preliminary results release on July 7th, 2020, Group EBIT was up significantly in Q2, +26.3% excluding one-off effects. As pre-announced, Q2 2020 Group EBIT included €99m of asset impairments triggered by lockdown measures (DSC: €62m, DeCS: €30m, Corp. Func
Slide 11: Management Comments: EBIT by division
Management Comments: P&P: EBIT growth mainly reflected measures initiated since 2018, i.e. yield management in Parcel and Post as well as overhead cost reduction. COVID-19 related volume decline in Dialogue Marketing was offset by Parcel volume acceleration. EXP: Core TDI volumes flat yoy (-0.2%), r
Slide 12: DPDHL Group Investment Case Fully Intact: Cash Flow
DPDHL Group Investment Case Fully Intact CASH FLOW » Continued investments for profitable growth » Strong balance sheetand cash generation
Slide 13: Management Comments: EBIT growth and lower Capex drive cash flow
Management Comments: EBIT growth of €+143m and lower cash out for Capex, related to lower cash outflow for the B777 investments were the main drivers of cash flow in the quarter. Hence, on a reported basis, FCF was up by more than €1bn. However, even excluding the B777 investments in both years, FCF
Slide 14: Management Comments: Expected cash flow drivers 2020-2022
Management Comments: This chart shows an update of the expected development of the main cash flow drivers for 2020 out to 2022. Starting from our EBIT guidance as introduced on July 7th, 2020, the major changes vs. our initial expectations in March are the following: • D&A is expected to be higher i
Slide 15: Management Comments: Capex expectations and FCF guidance
Management Comments: Capex expectations are the only change among the line items from OCF to FCF versus our initial overview in March. As previously flagged, Capex spending related to our Boeing 777 order in Express is now expected to be around €300 (vs. €500m initially). As a reminder: 2021 will be
Slide 16: Management Comments: Balance sheet, bond issuance and pensions
Management Comments: Looking at the balance sheet, there were two major effects in Q2. Following a successful bond issuance with record-low coupons on a total amount of €2.25bn, our balance sheet was extended by more than €2bn as the higher financial debt was mirrored by higher positions of cash and
Slide 17: DPDHL Group Investment Case Fully Intact: Shareholders' Return
DPDHL Group Investment Case Fully Intact SHAREHOLDERS‘ RETURN = Long-term Finance Policy defining sustainable shareholder returns
Slide 18: Management Comments: 2020 guidance fully confirmed
Management Comments: 2020 guidance fully confirmed: Guidance on all financial metrics reiterated as shown with preliminary figures on July 7th. 2020 EBIT guidance includes a total of ~€- 700m of one-time expenses related to asset writedowns (Q2: €-99m), the bonus payment to employees (Q3e: ~€-200m,
Slide 19: Management Comments: 2020 EBIT guidance one-time costs
Management Comments: As shown on p. 18, 2020 EBIT guidance includes a total of ~€-700m of one-time costs. Also taking into account 2019 one-offs, the guidance therefore implies EBIT growth of 4- 11% or €150-450m.
Slide 20: Management Comments: 2022 guidance unchanged
Management Comments: 2022 guidance remains unchanged: Guidance on all financial metrics reiterated as shown with preliminary figures on July 7th. 2022 EBIT guidance was updated to take into account various potential assumptions regarding post-Covid macro recovery. FCF and Gross Capex guidance are un
Slide 21: Management Comments: FY 2019 dividend proposal of €1.15
Management Comments: As announced on July 7th, 2020, DPDHL proposes a FY 2019 dividend of €1.15. AGM to be held on August 27th, 2020 in virtual format, dividend payment is scheduled for Sep 1st, 2020.
Slide 22: Management Comments: Resilience and strategic focus
Management Comments: Unusual H1 environment has shown how critical logistics services are – and confirmed how the leading and diversified footprint in this industry makes DPDHL Group relatively resilient. Moreover, self-help potential is addressed while operations have shown great agility to adapt t
Slide 23: Virtual Tutorials
VIRTUAL TUTORIAL WIRTUAL TUTORIAL VIRTUAL TUTORIAL DHL Supply Chain VIRTUAL TUTORIAL Express: Profitable DGFF: myDHLi Data Analytics ‘20 MA¥2020 Accelerated Digitalization e-commerce growth 03 SEPTEMBER 2020 10 JUNE 2020 T 05 OCTOBER 2020
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 stat