Slide 1: Q1 2020 Results Investor Call
| Q1 2020 RESULTS INVESTOR CALL = Frank Appel, Group CEO Melanie Kreis, Group CFO 12 May 2020
Slide 2: Key observations as of today
Key observations as of today * Q]1 confirms strong fundamental shape of DPDHL Group and resilience of our broad portfolio of logistics businesses «Full focus on delivering on our Purpose: “Connecting People, Improving Lives” - networks up and running, without compromising onsafety of our people «Vis
Slide 3: Delivering on our Purpose
Delivering on our Purpose Connecting People, Improving Lives — More than ever
Slide 4: Management Comments: Volume development snapshot
Management Comments: As a visual snapshot of where we currently stand and come from in terms of volume development. As already communicated and in line with our expectations, the most recent weeks seem to confirm the patterns that started developing when we released preliminary Q1 numbers early Apri
Slide 5: Management Comments: COVID-19 responses in operating business
Management Comments: COVID-19 has of course triggered numerous large- and small-scale responses in our operating business on a daily basis. Most of all, the first unambiguous priority is to keep our people safe! As a strongly diversified global logistics company with strong e-commerce exposure, we c
Slide 6: Management Comments: Short-term actions and Strategy 2025
Management Comments: As detailed on the previous page, our short-term actions are only one part of our COVID-19 response. The singular short-term priority is the safety of our people and – on that basis – supporting our customers to keep operating. All other short-term actions also need to include t
Slide 7: Management Comments: Q1 revenue by division
Management Comments: Despite a negative COVID-19 impact, Q1 revenue was organically above last year and with a slight working day benefit even showed a stronger organic growth than in Q4. Main drivers by division: • P&P: Price increases in Mail Communication and Parcel Germany as well as Parcel volu
Slide 8: Management Comments: Q1 2020 EBIT decline of -49%
Management Comments: Q1 2020 reported decline of -49% which reflects the following major factors: • Q1 2019 included a net positive effect from one-offs of €345m, mainly related to the sale of DSC China • As announced earlier, our decision to refocus StreetScooter is expected to lead to €300-400 non
Slide 9: Management Comments: EBIT and COVID-19 impact by division
Management Comments: Q1 numbers are in line with our preliminary reporting on April 7th – with total COVID-19 impact of €-210m in the quarter. • P&P: Parcel growth as well as yield and cost measures drove EBIT up significantly, despite negative Corona effect in March • Express: after good January, C
Slide 10: Management Comments: Mail and parcel volumes
Management Comments: Overall mail (MC + DM) volume decline was close to expected -5% to -6% range (-5.6% reported, -6.4% per working day) – although COVID-19 lockdown led to accelerated Dialogue Marketing declines in March. Besides the previously-flagged product shift from Dialogue Marketing, Mail C
Slide 11: Management Comments: Express volumes by region
Management Comments: In line with the timing of COVID-19 lockdowns, APAC volumes declined in Q1 (-0.8%) while Europe (+1.5%) and Americas (+8.3%) only saw progressive slowdown in growth towards the end of the quarter. China already registered a noticeable recovery in March, while Europe is showing f
Slide 12: Management Comments: Air and ocean freight volumes
Management Comments: Air freight and ocean freight volumes are down yoy reflecting general market weakness as a result of COVID-19. Whereas business in China already saw a noticeable recovery in March, volume downturns are seen in Europe and North America in particular. As AFR capacity shrank signif
Slide 13: Management Comments: Supply Chain volume deviations
Management Comments: Supply Chain faced an unusual situation of significant volume deviations from normal run rates – in both directions depending on the end markets. While activity levels reduced significantly in most industrial sectors as a result of lockdown measures, volumes increased significan
Slide 14: Management Comments: eCommerce Solutions regional impact
Management Comments: The impact of COVID-19 varied greatly from region to region, driving operating response in accordance to a local level. B2C business was up across the board, leading to a good overall growth in most European operations, with Spain being the main exception due to higher B2B expos
Slide 15: Management Comments: Q1 EBIT decline drivers
Management Comments: The significant decline in Q1 EBIT reflects a positive base effect in the previous year (net €+345m, from the sale of the Supply Chain business in China and restructuring charges) as well as negative effects of COVID-19 (€-210m) and the expected one-off charges for the refocus o
Slide 16: Management Comments: EBIT versus operating cash flow
Management Comments: As explained earlier, the yoy EBIT development is influenced by several major factors, most of which are not translating into similar effects on Operating Cash Flow: • Cash proceeds related to the positive EBIT effect from the DSC China disposal in Q1 2019 are recognized below O
Slide 17: Management Comments: Balance sheet and liquidity position
Management Comments: As shown before, our balance sheet metrics remain very solid and we continue to hold a strong liquidity position – all against a well spread maturity profile with limited short term repayments due. Cash and cash equivalents declined slightly vs. year-end, reflecting the typical
Slide 18: Management Comments: COVID-19 trends across divisions
Management Comments: Against the background of a quite unpreceded situation as the one triggered by COVID-19, here is what we have seen so far and are currently seeing in our divisions. After a good start into the year in January, we saw first negative COVID-19 impacts in China in February, but limi
Slide 19: Management Comments: Easing lockdowns and outlook uncertainty
Management Comments: Lockdown measures are now being reduced carefully at different levels and speeds across individual countries. This should also lead to a stabilization and progressive resumption of economic activity and hence trade flows. We are strongly confident that logistics is an essential
Slide 20: Management Comments: Guidance and mid-term targets
Management Comments: No new elements to our guidance set today. EBIT guidance for 2020 has been withdrawn and external uncertainties around COVID-19 remain too high to provide any new reliable 2020 guidance today. Our mid-term targets out to 2022 remain unchanged. 20
Slide 21: Wrap Up
21 Wrap Up * Current priority remains to protect our people and maintain customer service * Getting prepared for ramp-up in affected sectors, but also for potential second virus wave «Unchanged strategic focus on our long- term plans, based on diversified global footprint and strong balance sheet &