Slide 1: Q4/FY 2022 Results
Q4/FY 2022 RESULTS 9 M A RC H 2 0 2 3 1
Slide 2: CEO Review
CEO REVIEW FRANK APPEL Q4/FY 2022 RESULTS | DEUTSCHE POST DHL GROUP INVESTOR RELATIONS | 9 MARCH 2023 2 2
Slide 3: FY 2022 Highlights
Management comments: In 2022, Deutsche Post DHL Group delivered a record financial performance with yoy increases in Group revenue (+15.5%), EBIT (+5.7%) and Free Cash Flow excl. net M&A (+12.9%). Our international DHL divisions were once again the key drivers of these strong results. Focused execut
Slide 4: B2C: Less pronounced 2022 peak season, as expected
Management comments: As expected, B2C peak season was less pronounced vs. previous year. However, compared to Q4 2019, B2C volumes in DHL Express, DHL eCommerce Solutions and Parcel Germany are still significantly up, confirming our view that the structural trend towards a higher e-commerce share of
Slide 5: B2B: Pronounced decline driven by inventory cycle and macro situation
Management comments: B2B volumes have continued to soften in Q4, with Air and Ocean freight sequentially declining over the course of the year; this was further amplified by customer inventory management. TDI B2B volumes declined less at –4% yoy. The cyclical slowdown is in B2B indeed as expected ra
Slide 6: Record results for FY 2022
Management comments: Despite the macroeconomic slowdown towards year-end causing volumes to decline, Q4 revenue is up driven by FX development, M&A and yield management. With another strong €1.9bn EBIT in Q4, full-year profit of €8,436m delivered on our previously increased guidance of €~8.4bn (init
Slide 7: Taking established mitigation actions, without sacrificing readiness for upturn
Management comments: As our financial performance shows, we successfully managed to adapt our operations to the gradual softening of both B2C and B2B demand. We are executing on our well- established levers to react to short-term GDP slowdowns along all direct and indirect cost blocks as appropriate
Slide 8: Digitalization enhances end-to-end operations
Management comments: DPDHL Group is at the forefront of digitalization and technology in the logistics industry, investing in cutting-edge technologies and digital solutions to drive business growth and improve our operations. From real-time tracking of parcels, automated warehousing or predictive m
Slide 9: 2022 Group ESG targets fully delivered
Management comments: Our Sustainability roadmap launched in 2021 has set clear ambitions, targets and associated action plans across a broad range of topics and metrics identified as relevant for our Group. With each topic and related initiatives tracked internally, our ESG Statbook shows all releva
Slide 10: Going Forward
Management comments: Following our record 2022 results, freight market normalization in DGFF and general macro uncertainties will drive a momentary step back in earnings and cash flow generation in 2023. However, as reflected in our 2023 guidance, we expect earnings to remain significantly above for
Slide 11: Key Financials
KEY FINANCIALS MELANIE KREIS Q4/FY 2022 RESULTS | DEUTSCHE POST DHL GROUP INVESTOR RELATIONS | 9 MARCH 2023 11 11
Slide 12: FY 2022 Group P&L
Management comments: In FY 2022, DPDHL Group delivered record financial results not only on the top-line, but also on EBIT, net profit and EPS. In Q4 2022, business development reflected the challenging macro environment with revenue growth slowing to +1.7%. EBIT was down - 13.1% yoy, due to decline
Slide 13: FY 2022 Cash Flow Generation
Management comments: In addition to our strong operational performance with a record FY 2022 EBIT, working capital inflow contributed to even stronger growth in Operating Cash Flow. FCF excluding Net M&A of €4.6bn came in ahead of previously increased guidance (€>4.2bn, initial range €3.6bn +/-5%).
Slide 14: Value generation for shareholders
Management comments: Despite current economic uncertainties, we continue to invest in our leading service quality in order to be best positioned for sustainable growth in our core logistics operations. Of course, all investments have to meet our strict criteria and IRR hurdle rate - with our Group R
Slide 15: Long track record of increasing shareholder returns
Management comments: In line with our clear and long-standing finance policy, we remain committed to return cash to our shareholders through our regular, progressive dividend payments (40-60% pay- out from adjusted net profit; cash flow and continuity considered) and through share buy- backs. Our st
Slide 16: Looking Ahead
LOOKING AHEAD TOBIAS MEYER Q4/FY 2022 RESULTS | DEUTSCHE POST DHL GROUP INVESTOR RELATIONS | 9 MARCH 2023 16 16
Slide 17: Market Outlook – Short-term perspectives
Management comments: Going into 2023, there is a wide range of macro scenarios discussed in financial markets and also reflected in our consensus expectations. For our internal planning, we have worked with three modelling assumptions on when a recovery from the currently low volume environment coul
Slide 18: Deutsche Post DHL Group in the best shape ever
Management comments: Our confidence in weathering 2023 circumstances and successfully riding the recovery when it unfolds is also based on the strong set-up that our Group and divisions have achieved. 15 years ago, over half of our profits came from the Mail operations vs only 19% from DHL. With our
Slide 19: 2023 expectations subject to macro development
Management comments: Our 2023 performance will reflect the post- pandemic normalization of freight market rates in our DHL Global Forwarding, Freight operations. Beyond that, GDP development and the timing of volume recovery will be key determinants; nonetheless, we continue to execute on our mitiga
Slide 20: 2023 and mid-term guidance
Management comments: Group EBIT guidance of €6.0-7.0bn reflects the scenarios as described on the previous page. Considering that the freight rate normalization alone should drive a yoy swing of somewhere around €1bn to profits in DHL Global Forwarding, Freight, the DHL guidance implies resilient ea
Slide 21: Management priorities going forward
Management comments: Following our Annual General Meeting on May 4th, 2023, Tobias Meyer will as planned take over the Group CEO position from Frank Appel. In line with the smooth transition process so far, this should not alter the short-term priorities which are mainly around managing the current
Slide 22: Key investment highlights
Management comments: These key investment highlights summarize the business and investment profile of DPDHL Group, combining safe balance sheet and investor returns metrics to weather any downturn while ensuring readiness to successfully ride the next macro upturn. In short, Deutsche Post DHL Group
Slide 23: Appendices
APPENDICES DIVISIONAL RESULTS Q4 2022 Q4/FY 2022 RESULTS | DEUTSCHE POST DHL GROUP INVESTOR RELATIONS | 9 MARCH 2023 23 23
Slide 24: DHL Express
Management comments: In light of softening consumption and GDP slowdown, TDI shipments/day declined in Q4 as peak season uplift was not as strong as in the previous year. Besides lower volume, Q4 revenue growth also reflects less tailwind from external revenue - and cost - drivers like FX and fuel w
Slide 25: DHL Global Forwarding, Freight
Management comments: The expected normalization of freight rates started in 2022, eventually more suddenly and at a slightly faster pace than generally anticipated. In Q4, soft volumes and normalizing rates led to a decline in revenue of -4.6% yoy while EBIT was flat on last year’s high level. Note
Slide 26: DHL Supply Chain
Management comments: DSC delivered strong top line growth driven by all-time high new business signings and a consistently high renewal rate. The strong EBIT development reflects top line growth delivered with higher efficiencies from standardization and digitalization. With >5,300 digitalization pr
Slide 27: DHL eCommerce Solutions
Management comments: In Q4, revenue (+1.9% yoy) and EBIT (-2.2% yoy) were stable despite accelerated cost inflation, which has been addressed through yield management. Annual General Price Increases (GPI) for 2023 have been tailored to country circumstances as usual. Following the surge in volumes o
Slide 28: Post & Parcel Germany
Management comments: Peak season in Q4 was as expected less pronounced than last year as we saw an overall weakening consumption towards year-end. Note that reported parcel volumes benefited from some mix shifts of e-commerce volume from larger mail product categories; the underlying parcel developm
Slide 29: 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