INVESTOR PRESENTATION

Investor Relations

Deutsche Post DHL Group August 2020

DPDHL Group Summary

Strategy 2025

Divisional Deep-Dives

Group Financial Backup

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 2

Q2 2020 Key Highlights

  • As pre-released, Group EBIT back to growth in Q2 2020
  • Strong cash flow development further testifies fundamentallystrongoperatingperformance
  • Position of strength allows to carefully steer cash utilization between balance sheet safety, employee bonus, growth investments and shareholderreturns

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 3

Q2 2020 Group Revenue

GROUP

€15,959m

€+479m

(+3.1%)

Revenue growth yoy

All in €m

+368

+253+277

+167

-544

P&P Germany

Express

DGFF

DSC

DeCS

Organic Growth

Group:

+7.0%

+7.9%

+11.2%

-13.1%

+17.4%

+4.6%

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 4

EBIT back to growth in Q2

GROUP EBIT €912m (+18.6% yoy);

+26.3% excl. 2019 One-offs, StreetScooter & 2020 asset impairments Note: No separation of COVID-19 impacts

in €m

+26.3%

1,101

+229

-99

912

872

-90

769

+103

Q2 2019

Q2 2019 One-offs

Q2 2019 excl.

Q2 Operating

Q2 2020 excl.

Q2 2020

Q2 2020

Q2 2020

EBIT Reported

& StreetScooter 1)

One-offs &

performance

One-offs &

One-offs2)

StreetScooter

EBIT Reported

StreetScooter

StreetScooter

1) Q2 2019, One-offs:€-53m DSC restructuring costs, €-28m DeCS restructuring costs; StreetScooter: €-22m

  1. Q2 2020, One-offs:€-99m asset impairments triggered by lockdown

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 5

Q2 2020 EBIT, Divisional results and main drivers

EBIT Q2 2019

+8.4%

+49.2%

521

565

+53.2%

264

190

177

124

EBIT Q2 2020

in €m

-59.8%

>+100%

87

35

1

-18

Q2 2020 Comments

P&P Germany

  • EBIT growth mainly reflects measures initiated in 2018 (overhead reduction, yield management,…)
  • Parcel acceleration offsets volume decline in Dialogue Marketing

Express

  • TDI volumes flat yoy, recovering from April trough
  • Higher network cost balanced by cost & yield measures and higher ACS (air capacity sales) revenue

DGFF

  • Tight AFR market drives strong AFR gross profit and EBIT increase
  • Internal process optimization ongoing

DSC

  • Low activity levels & temporary shut- down of several customer operations
  • Profit contribution supported by customer portfolio and cost measures

One-offs yoy: Q2 2019: €-53mrestructuring charges; Q2 2020: €-62masset impairment

DeCS

  • Strong growth in B2C
  • On track towards positive profit contribution in 2020

One-offs yoy: Q2 2019: €-28mrestructuring charges; Q2 2020: €-30masset impairment

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 6

Q2 2020 Cash Flow

in €m

Q2 2019

Q2 2020

vs. LY

EBIT

769

912

+143

Depreciation/amortization

918

942

+24

Change in provisions

-10

113

+123

Income taxes paid

-235

-157

+78

Other

4

-7

-11

Changes in Working Capital

-181

-157

+24

OCF

1,265

1,646

+381

Net Capex

-1,188

-443

+745

Net cash for leases

-572

-562

+10

Net M&A

-8

-4

+4

Net interest

-44

-32

+12

Free Cash Flow

-547

605

+1,152

FCF (excl. B777 payments)

196

640

+444

incl. B777 payments:

€35m in 2020; €743m in 2019

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 7

Strong balance sheet and liquidity position

1.7x

Net Debt / EBITDA

(31.12.2019)

Leases

10,301

7,812

Related to multi-

year commitment

on operating assets

3,066

in €m

Net Debt

EBITDA

LIQUIDITY

No financial covenants on bonds and syndicated credit facility

€4.6bn

€2.0bn

>€1.5bn

Cash & cash

Syndicated credit facility

Bilateral credit

equivalents (30.06.20)

runs until 2024 (undrawn)

lines (undrawn)

Maturity Profile, Senior Bonds

~€500m

Average time to maturity 5 . 9 years

€m

2020 maturities

on financial

750

liabilities

300

750

500

500

700

0

500

500

750

750

0

0

750

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

New bonds issued on May 13th 2020

Coupons: 0.375% (6-year), 0.75% (9-year), 1% (12-year)

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 8

Shareholder Returns defined by Finance Policy; 2020 dividend continuity assured

Dividend proposal of €1.15 for FY 2019, stable yoy

€1.15

€1.15

€1.15

€0.80

€0.85

€0.85

€1.05

€0.65

€0.70

€0.70

60%

59%

58%

53%

49%

50%

48%

52%

55%

55%

46%

40%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Underlying Payout Ratio 1)

Dividend payment of €1.4bn to DPDHL shareholders to be proposed at AGM on Aug 27th

1) Adjusted for non-recurring items when applicable

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

FINANCE POLICY

  • Target / maintain rating BBB+
  • Dividend payout ratio to remain between 40-60% of net profit (continuity and Cash Flow performance considered)
  • Excess liquidity will be used for share buybacks and/or extraordinary dividends

PAGE 9

2020 EBIT guidance: Confirmed as introduced on July 7th, 2020

in € bn

EBIT

2020

Group

3.5-3.8

P&P

~1.5

DHL

2.8-3.1

Corp. Functions

~ -0.75

Reported EBIT includes:

  • ~ €-300m related to asset impairments (Q2, €-99m) & one-time payment (Q3e, ~ €-200m)
  • One-timecosts related to non-core business (StreetScooter, ~ €-400m)

2020

FCF

~1.4

Gross Capex

~2.9

(excl. leases)

Tax Rate

22-24%

FCF and Capex guidance includes ~ €300m Express intercontinental fleet renewal (B777) and ~ €-200mone-time payment

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 10

2020 Guidance: What is factored in

GROUP EBIT guidance: €3.5-3.8bn,including

in €m

- €-99m asset impairments (Q2 2020)

- ~ €-200mone-time payment (expected Q3 2020)

-

~ €-400m StreetScooter

4,200-4,500

4,128

-80

4,048

+150-450

~ -300

~ -400

3,500-3,800

+4-11%

growth

FY2019 EBIT

2019 One-offs

2019 excl.

2020e

2020e excl.

2020e

2020e

FY 2020e EBIT

Reported

& StreetScooter1)

One-offs &

Operating

One-offs &

One-offs2)

StreetScooter

Reported

StreetScooter

performance

StreetScooter

1) 2019 One-offs: €+426m DSC China disposal, €-151m DSC restructuring costs, €-80m DeCS restructuring costs, €-115m StreetScooter

2) 2020 One-offs:€-99m asset impairments triggered by lockdown (Q2), ~€-200mone-time payment (Q3e)

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 11

2022 Guidance: Confirmed as updated on July 7th, 2020

All targets to be rolled forward annually

Post-Covid Recovery

2022 EBIT

V-shape

> €5.3bn

U-shape

~ €5.1bn

2020-22 cumulative

FCF€5.0 - 6.0bn

Gross Capex

€8.5 - 9.5bn

(excl. leases)

L-shape

~ €4.7bn

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 12

DPDHL Group Investment Case Summary

EARNINGS

  • Sustainable growth from diversified global market leader
  • Clear agenda for improving profitability

CASH FLOW

  • Continued investments for profitable growth
  • Strong balance sheet and cash generation

SHAREHOLDERS' RETURN

  • Long-termFinance Policy defining sustainable shareholder returns

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 13

DPDHL Group Summary

Strategy 2025

Divisional Deep-Dives

Group Financial Backup

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 14

STRATEGY 2025: Delivering Excellence in a digital world

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 15

Sustainable development: CO2 efficiency improved by 2 further index points

CEX* measures efficiency of greenhouse

Long-term target: Zero CO2

gas emissions

emissions by 2050

100

Measures to reduce emissions - examples

Target 2019 (34%)

90

•

Leader in electric mobility: ~11,000

achieved

Streetscooter in delivery operations;

80

35%

>30% of deliveries are emission-free

70

• >80% of group electricity from

renewable sources

60

• >3m trees planted since 2017

50

CEX 2025 Target: 50%

40

*CEX: Carbon Efficiency Index

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 16

Core logistics offers sustainable growth opportunity

Focus on profitable growth in our core

As presented at Capital Markets Day in Oct 2019

Market growth assumption

by division (volume p.a., 2018-2025)

  • P&P: Parcel +5-7%, Mail -2% to -3%
  • EXP: TDI +4-5%
  • DGFF: OFR +2-4%; AFR +1-3%; RFR +3-4%
  • DSC: Outsourced logistics ~+4% (revenue)
  • DeCS: Driving revenue CAGR of 5-10% across all businesses

Expected growth vs. Market

At least in line:

P&P, EXP, DSC, DeCS

Above:

DGFF

  • Supported by unchanged strong yield discipline in all divisions

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 17

Summary divisional outlook: Strategy 2025

As presented at Capital Markets Day in Oct 2019

P&P Germany

EXPRESS

DGFF

DSC

DeCS

• Beyond 2020, slow

•

Continued growth of

•

DGF GP-EBIT

• Topline growth at least

• Gradual increase

topline growth with

absolute EBIT

conversion

in line with market

towards 5% long term

stable margin

•

Continued,but more

improvementof

• Maintain industry

margin thereafter

incremental margin

100-200bps p.a.

leadingmargin at ~5%

expansion

•

Long-term target:

~30% DGF conversion

driving5-6% DGFF EBIT margin

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 18

E-commerce: We offer the entire logistics value chain

Inbound

DGFF

Freight Transport

EXP DGFF

Customs Service

Existing offer

Fulfillment

DSC

B2C-dedicated/

omni-channel

warehouses

DSC

Multi-user FF

network

Underway

Delivery

P&P DeCS

Domestic parcel

EXP

Cross-border

TDI

DeCS

Cross-border

intercontinental

parcel

Returns

P&P EXP

Domestic and

international

DSC

Fulfillment

(back to stock)

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 19

DPDHL Group Summary

Strategy 2025

Divisional Deep-Dives

Group Financial Backup

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 20

P&P Germany: Revenue up 7% as Parcel growth & yield measures more than offset DM volume decline

Q2 2020

Volume

Revenue

yoy

Mail Communication

-3.0%

+4.4%

Dialogue Marketing

-27.2%

-27.0%

Parcel Germany

+21.4%

+28.1%

  • As previously communicated, DM showed significant reduction in advertisement volumes during lockdown
  • MC volumes holding up well, revenue increase driven by yield measures
  • Parcel volume growth significantly higher than usual - stronger revenue growth reflects regular, annual yield measures as well as mix effects

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 21

P&P Germany: To have in mind for 2020

  • Mail: Shift from DM to MC / elasticity effects
    • Fundamental trend in Mail volume decline confirmed at -2% to -3%
    • However, temporarily stronger volume decline of -5% to -6%*, due to changes to product structure and price elasticity
    • Positive revenue effects anticipated due to price increases and structural changes to product portfolio
    • EBIT impact neutral
  • Parcel: Expected reduction in Amazon volumes
    • Overall volume increase expected to be slower at 0 to +5%*
    • Stronger revenue than volume growth due to focus on yield
    • EBIT impact considered in guidance
  • Current wage agreement expiring end of May

*Pre Covid-19

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 22

P&P Germany: Top strategic priorities

Strategy 2025 divided into two horizons

Refocus on core market in Germany (2019/ 2020)

  • Price increases
  • Quality improvements
  • Indirect cost measures (overhead)
  • Direct cost measures (productivity)

In 2020: Phase over to

Roadmap 2025

  • Optimized asset concept including real estate and new sorting concept for mid-sized shipments
  • New features and boost of Packstation
  • Accelerate digitalization in operations

Digitalization @ P&P

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 23

P&P Germany: Products and Pricing

P&P revenue

Pricing

FY19: €15.5bn

Mail

Ex-anteproducts - private customers

Jul 2019: 10.6% increase for 2019-2021 period (incl. international)

Communication

€5.3bn

Partial services - business customers

2019: No increase, 2020: 3-4% through reduction of discounts

Dialogue

Addressed and undressed advertisement mailings,

Marketing

Partially increased in 2019-2020

campaigns (both digital & physical)

€2.1bn

International

In- and outbound Germany shipments

Depends on the product category: Partially increased in 2019-2020

€2.2bn

Other

Press, pension services, retail

Partially increased in 2019-2020

€0.9bn

Business

Top accounts (~330 customers)

Parcel Germany

Middle accounts (~18k customers)

Stronger increase than historically

customers

Small accounts (~85k customers)

€4.8bn

Private customers

Listed prices in retail outlets and online

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 24

P&P Germany: Parcel growth driven by all customer segments

Revenue Parcel

Revenue growth

2019

2019

(in €bn)

(in %)

Top accounts

∼ 2.3

8%

(∼ 330 customers)

Medium accounts

∼

2.0

12%

(∼ 18,000 customers)

Small accounts

∼ 0.4

11%

(∼ 85,000 customers)

6.8% B2X Market

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 25

Digitalization in P&P Germany

Postage

Notification

Tracking

Receiving/sending

Simply use your mobile

Always know which

… and where it currently

Receiving and sending parcels

phone to add postage

shipment is on the way…

is

around the clock

End 2020

Summer 2020

Starting in

Until 2021

Starting in

2021

2021

Mobile stamps

Notification and copy

Letter tracking

Packstation expansion

Now available

Fall 2020

Ramp-up 2020

7,000 Packstations through

2021

and the new self-service kiosk

solution Post & Paket 24/7 that

Mobile parcel stamps

15-minute

Live parcel tracking

will offer basic mail and parcel

services starting in 2021

and returns

notification

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 26

P&P Germany: Financial Outlook

Market (2018 - 25)

Market growth assumptions

Expected growth vs. market

Mail volume:

decline of -2 to 3% p.a.

IN LINE

Parcel volume:

growth of +5 to 7% p.a.

AT LEAST IN LINE

As presented at Capital Markets Day in Oct 2019

Capex Outlook

  • Capex p.a. between €500-600m for 2020- 2022
  • Expansion of Parcel infrastructure (e.g. Packstation, hubs, depots, fleet), new sorting concepts and digitalization

EBIT Outlook

Beyond 2020

  • Slow topline growth with stable margin

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 27

DHL Express are the 'Experts in Export and Import'

The Profitable Core

Time Definite International (TDI) service for premium, cross-border delivery of time-critical parcels and documents

Revenue Mix1)

(€bn, FY 2019)

TDI

77%

10%

DDI & TDD

ACS & Others

13%

  1. TDI: Time-Definite International, DDI: Day-Definite International,
    TDD: Time-Definite Domestic, ACS: Air Capacity Sales & Other Products & Services

Global TDI market 2)

(2016)

Others

In 2014: 10%

11.0%

UPS 22.0%

38.0% DHL

In 2014: 35%

In 2014: 23%

FedEx

29.0%

24% FedEx /

In 2014: 32%

5% TNT

(26% FedEx/6% TNT)

  1. Source: Market Intelligence 2017, annual reports

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 28

Express TDI volume recovering from April trough

Global TDI SpD*, YoY Growth

TDI SpD* by Region, YoY Growth

8.3%

Asia Pacific

1.5%

Europe

Americas

-0.8%

8.9%

Jan

Feb

Mar

Apr

May

Jun

Q1: +0.6%

Q2: -0.2%

*SpD: Shipments per Day

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

-3.2%

-2.7%

Q1 2020

Q2 2020

PAGE 29

Express: Leading global footprint drives well supported TDI growth in 2019

TDI volume growth, quarterly growth ranking

#1

EU

AM

AM

EU

EU

MEA

MEA

MEA

AM

EU

MEA

EU

MEA

EU

EU

AM

AM

AP

#2

AM

EU

EU

AM

MEA

EU

AM

AM

MEA

MEA

EU

AM

EU

MEA

AM

EU

EU

AM

#3

AP

AP

MEA

MEA

AM

AM

EU

EU

EU

AM

AP

AP

AP

AM

AP

AP

AP

EU

#4

MEA

MEA

AP

AP

AP

AP

AP

AP

AP

AP

AM

MEA

AM

AP

MEA

MEA

MEA

MEA

763

820

770

880

825

890

863

978

904

964

908

1,044

949

1,027

962

1,100

955

1,025

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

2016

2017

2018

2019

2020

FY: +7.6%

FY: +9.9%

FY: +7.5%

FY: +5.7%

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

Q2 yoy: -0.2%

PAGE 30

E-commerce is a Profitable Growth Driver for DHL Express

2013 2019

B2C shipment share

10%

30%

We grow B2C profitably because 90% of the KPIs perfectly suit our network

Volume growth drives better utilization

SpD

of existing network

Lower weight per shipment

WpS

Higher Revenue per Kilo related to lower WpS

RpK

EBIT margin

9%

12%

First mile

Hub sort

Airlift

Last mile

More pieces per stop at pickup

Better utilization of existing infrastructure, with high degree of conveyables

Better utilization of existing capacity, with lower WpS being advantageous

Residential delivery to private households

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 31

Intercontinental Fleet: Use Replacements as Opportunity to Move Towards Higher Ownership Structure

Dedicated fleet (w/o feeders)

2010: ~150 planes

2019: >200 planes

Owned Lease

2010-18: fleet expansion

  • Expansion based on successful virtual airline model - gradual shift in mid-sized, regional segment from leases to ownership
  • Today: well balanced fleet regarding ownership and maturity - ownership structure of intercontinental fleet still more tilted towards leases

Outlook

  • Order for 14 Boeing 777s signed, in-line with intentions announced at May 2018 CMD - first 4 planes delivered in 2019
  • New aircraft are capacity neutral but bring significant cost, efficiency and reliabilility benefits
  • Any further fleet expansion to be carefully considered in line with market growth expectations

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 32

DHL Express: Virtual Airline Model

Dedicated air: >260 aircraft with 16 owned and partner airlines

Purchased air: >300

commercial airlines

>260

500

22

Flights per day:

Aircraft

Airports

Major Air Hubs

~3.200 commercial

and non commercial

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 33

DHL Express: Financial Outlook

As presented at Capital Markets Day in Oct 2019

Market (2018 - 25)

Market growth assumptions

Expected growth vs. market

TDI volume growth: 4-5%

AT LEAST IN LINE

Supported by unchanged strong yield discipline

Capex Outlook

  • Excl. current replacement order for Boeing 777s, Capex flat around 2018 level of €~1bn for next 2-3 years
  • Investment in expansion and digitalization along whole value chain (air & ground fleet, hubs/gateways/depots)

EBIT Outlook

  • Continued growth of absolute EBIT
  • Continued, but more incremental margin expansion

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 34

DGFF: The foundation for further success has been laid

The Profitable Core

International transportation of Air Freight, Ocean Freight and Road Freight including Customs Clearance and

related Value-added Services like warehousing, cargo insurance, etc.

Revenue Mix

Market Position

(€bn, FY 2019)

(2018)

Air

#1

#2

4.9

Air Freight

Ocean Freight

4.4

Road

3.5

Ocean

#2

2.2

Other

European Road Freight

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 35

DGFF: Increase in GP/unit in AFR and OFR drives strong Q2 performance

Q2 2020

Air Freight

Ocean Freight

yoy

(AFR)

(OFR)

Volumes

-13.7%

-19.6%

Gross Profit

+42.4%

-15.3%

GP/EXP t ; GP/TEU

+65.1%

+5.2%

  • Very strong and unusual GP development in AFR due to extremely tight market
  • Size and strong relationships with carriers and customers key to find & match capacity
  • Internal process optimization ongoing: CargoWise roll-out considered completed in OFR and >30% in AFR - new digital customer portal myDHLi successfully launched

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 36

DGF: EBIT growth supported by further GP-to-EBIT conversion improvement

DGF EBIT margin and GP/EBIT conversion

12-months rolling

18.8%

14.9%

15.9%

3.4%

3.7%

4.3%

Q2 2014

Q2 2015*

Q2 2016

Q2 2017

Q2 2018

Q2 2019

Q2 2020

GP Conversion

EBIT %

*Adjusted for NFE one-off

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 37

DGFF - Emerging new rivals do not pose imminent risk of disruption

Digital Capabilities

Digital Forwarders

Gaps to close

?

  • Back-endIT infrastructure
  • Own setup (physical) globally
  • Operational expertise
  • Global sales force
  • Carrier relationships

Incumbents

Gaps to close

• Modern, fully-integrated IT infrastructure

  • Digital customer interaction tools

Global network

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 38

The lifecycle of a shipment is a complex process and technology investments are key to success

Quotation

process

Goods

to be shipped

Digital analytic tools

Billing

& payments

Take control

Create documents

Plan route

of goods from

Manage transport

for export compliance

& organize

Customer

& customs

to port/airport

Consolidation

shipment

IT System

App-based

App-based

Online

tracking tools

Upgrades

tracking tools

Quotation

Tools

IT System

App-based

Upgrades

IT System

tracking tools

Upgrades

Transport to warehouse

Manage loading & export process

Real-time

tracking platform

Accept delivery at port/airport

Ensure goods are shipped

Ensure

shipment

stays on track

or final destination

Manage documents for import compliance & customs process

Step in the lifecycle of a shipment System or technology support

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 39

CargoWise1 Rollout progressing well

Benefit realization started

Ocean Freight

Air Freight

considered completed

>30% completed

Complete CargoWise1 roll-out by 2021

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 40

With IRR & Digital Customer Interaction DGF is enhancing customer experience while increasing operational efficiency

myDHLi 360° VISIBILITY COLLABORATIONFULL ACCESS MANAGED BY CUSTOMER

External

QUOTE + BOOK

TRACK

DOCUMENTS

ANALYTICS

IT Renewal Roadmap (IRR): Our Digital Backbone established

Internal

New TMS

Paperless

Quotation

Track + trace /

Steering

… and many

forwarding

tool

shipment visibility

Logic

more

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 41

DGFF: Financial Outlook

Market (2018 - 25)

Market growth assumptions

  • Air Freight +1-3% ; Ocean Freight +2-4%
  • Road Freight +3-4%

As presented at Capital

Markets Day in Oct 2019

Expected growth vs. market

ABOVE

Aligned with unchanged focus on GP optimization and profitable growth

Capex Outlook

  • Flat / slightly increasing from FY 2018 levels (€110m)
  • Asset light business model: Selected investments related to warehouses, sites and IT

EBIT Outlook

  • DGF GP-EBIT conversion improvement of 100-200 bps p.a.
  • Long-termtarget: ~30% DGF conversion driving 5-6% DGFF EBIT margin

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 42

DHL Supply Chain: Business Overview

The Profitable Core

  • We manage supply chains to reduce complexity for our customers.
  • Our profitable core includes warehousing, transportation as well as key solutions like LLP*, Service Logistics, packaging and e-commerce
  • We lead in innovation and sustainable solutions

Revenue Mix

(%, FY 2019)

Retail

29%

Consumer

24%

Auto-mobility

15%

Technology

14%

Life Sciences

9%

& Healthcare

E&M**

6%

Other

3%

Key Facts

  • World No.1 in contract logistics with 6 % of market share
  • Strong customer base built on long-lastingpartnerships in more than 50 countries with >156,000 employees and ~2,000 sites globally

*Lead Logistics Provider. **E&M: Engineering and Manufacturing

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 43

DHL Supply Chain: Solutions Overview

Offering Customized Solutions Across the Entire Supply Chain

Revenue by Service Area

FY 2019

WarehousingTransportation

37%

56%

7%

Value Added

Services

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 44

DHL Supply Chain is uniquely positioned to cater for e-commerce growth

We manage supply chains to reduce complexity for our customers

Our profitable core is:

  • warehousing, transportation
  • LLP, Service Logistics, packaging and e-commerce

We lead in innovation and sustainable solutions

38% of new retail business is e-commerce and we are growing at a double digit rate

Pure e-commerce for brand

manufacturers

Pure e-commerce retailers/

etailers, marketplaces

Omni-channel centralized and

combined B2C/ B2B fulfillment

Regional fulfillment networks

across multi user locations

… using state-of-the-art technologies

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 45

DSC: EBIT Margin Development By Region

NOT TO SCALE

4.6% 4.7%

3.2%

DSC EBIT margin

2013

2018

2019

Americas

EMEA

APAC

Solid topline growth with

Benefits from restructuring

Continued strong performance

margins on sustainable strong

measures in UK beginning to

across countries; margin decline in

level

drive margin recovery

2019 was dueto discontinued EBIT

contribution fromChina

*All figures excluding one-offs

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 46

#ExecutionEdge: Standardization is key to success - DSC leverages a holistic Management System

Operations Management System First Choice (OMS FC)

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 47

DHL Supply Chain's digitalization agenda embraces all areas

CUSTOMER

OPERATIONS Accelerated Digitalization of key technologies and optimized asset utilization through predictive analytics

SUPPLYCHAIN

Receiving/ Put-away Storage

Picking

Packing

Dispatch/ Delivery

ANALYTICS

Intelligent Process Automation

Delight our

Supporting Robots

customers with

analytics

SmartOperations

Indoor Robotic

Inventory

Assisted

Wearable

Goods-To-

Robotic

Wrapping

Mgmt.

Picking

Person

Asset Tracking &

Transport

Devices

Arms

Robots

Robots

Robots

Robots

Monitoring

Optimization of

Asset Tracking & Monitoring

inventory

management

Algorithmic Optimization

Network

Volume

Inventory

Dynamic Task

Walking Distance

Opti-Carton

Estimated Time of Arrival

Planning

Forecast

Optimization

Optimization

Optimization

Analysis

(ETA) Prediction

SUPPORT

FUNCTIONS

Enable analytics & optimize business support

IT

Predictive IT maintenance

Finance

Predictive cash flow optimization

HR

Increase staff engagement & retention

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 48

DSC has defined 12 focus technologies to accelerate deployment

Assisted Picking Robots

Goods-To-Person Robots

Wrapping Robots

Indoor Robotic Transport

Inventory Mgmt. Robots

Robotic Arms

SmartOperations

Wearable Devices

Intelligent Process

Algorithmic Optimization

Supporting Robots

Asset Tracking and

Automation

Monitoring

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 49

DHL Supply Chain: Financial Outlook

As presented at Capital Markets Day in Oct 2019

Market (2018 - 25)

Market growth assumptions

Expected growth vs. market

Outsourced contract logistics:

Revenue growth of ~4% p.a.

AT LEAST IN LINE

Capex Outlook

  • Slightly increasing from FY 2018 levels (€282m) driven by new business wins
  • Asset light business model
  • Selected investments related to new business start- ups and accelerated digitalization initiatives

EBIT Outlook

  • Topline growth at least in line with market, while maintaining selective business approach
  • Maintain industry leading margin at ~5%

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 50

DHL eCommerce Solutions: Business Overview

Going forward we focus on domestic and non-time-definite international parcel delivery - especially within Europe

The Profitable Core

Domestic last mile parcel delivery in selected

countries outside of Germany (Europe, USA and selected Asian emerging markets)

Non-TDIcross-border services primarily to/from and within Europe.

Revenue Mix

(€bn, FY 2019)

14%

Asia

29%

Americas

57% Europe

We are not

  • driving a group-widee-commerce logistics global strategy
  • focusing on B2C only but also on B2B across all verticals
  • the testing environment anymore (e.g. eFulfillment or Parcel Metro)

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 51

DHL eCommerce Solutions: Focus on two value streams

Domestic last mile delivery

  • High quality delivery in own and partner- networks
  • Healthy mix of B2C and B2B across all verticals
  • Strong focus on yield and profitability

Non-TDIcross-border

  • Strong growth in cross border retail
  • Changing expectations on speed, visibility & quality
  • Primary focus to/from and intra Europe
  • Parcel Connect in Europe a strong and growing platform

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 52

DeCS Financial Outlook

Market (2018 - 25)

Market growth assumptions

Strong, heterogeneous growth across domestic and cross-border ecommerce markets

As presented at Capital

Markets Day in Oct 2019

Expected growth vs. market

CAGR of 5-10% across all businesses

Based on selective B2C approach and added B2B focus

Capex Outlook

  • Average spend of ~€200m p.a. over 2019-2022 (2018: € 166m)
  • Investments along whole value chain: fleet replacement, network expansion, digital platform, machinery and equipment in hub and depots

EBIT Outlook

Beyond 2020

  • 5-10%sales growth with gradual margin expansion towards 5% long term margin across all businesses

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 53

DPDHL Group Summary

Strategy 2025

Divisional Deep-Dives

Group Financial Backup

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 54

DPDHL Group at a Glance

DHL Global

DHL Supply

DHL

GROUP

P&P Germany

DHL Express

Forwarding

eCommerce

Chain

FY 2019

Freight

Solutions

Revenue

€63,341m

€15,484m

€17,101m

€15,128m

€13,436m

€4,045m

EBIT

€4,128m

€1,230m

€2,039m

€521m

€912m

€-51m

EBIT Margin

6.5%

7.9%

11.9%

3.4%

4.7%*

FTEs

499,461

159,100

96,850

44,265

155,791

30,797

Network business -

Network business -

Brokerage -

Outsource -

Network business -

*adjusted for one-offs

asset intensive

asset intensive

asset light

asset light

asset intensive

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 55

DPDHL Group: Resilience through our diversified portfolio

EBIT Margin

12-months rolling

11.5% Express

9.4%

9.0% P&P

8.3%

5.2%

5.8% GROUP

4.0% DSC

3.1%3.6% DGFF

3.0%

Q2 2014

Q2 2020

2019 revenue

EBIT Margin: DSC adjusted for 2019 one-offs, DGFF for NFE write-down in 2015

Until 2017: P&P values includes business activities which are now under DeCS

*B2C Express, Parcel Germany and DHL eCommerce Solutions

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 56

Q2 2020 Group P&L

in €m

Q2 2019

Q2 2020

vs. LY

Revenue

15,480

15,959

+3.1%

EBIT

769

912

+18.6%

Financial result

-137

-155

-13.1%

Taxes

-139

-182

-30.9%

Consolidated net profit*

458

525

+14.6%

EPS (in €)

0.38

0.43

+13.2%

*after minority interest

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 57

Cash Flow Outlook: Overview of major drivers (1/2)

2019

2020e

FCF effect

Main Drivers 2020 - 2022

(in €m)

(in €bn)

22e vs 20e

EBIT

4,128

3.5-3.8

EBIT guidance: 2020: €3.5-3.8bn; 2022: between

~€4.7bn and >€5.3bn, depending on macro recovery

Includes non-cashone-offs in 2020 (StreetScooter,

Depreciation/amortization

3,684

~+4.0

impairments); slight increase reflecting investments excl.

these 2020 one-off effects

Change in provisions

Income taxes paid

Changes in WC / Other

-506~-0.4

-843~-0.7

-414 +/- 0.2

Incl. effects for yearly pension payments; in 2019/2020 utilization of early retirement / restructuring provisions

Reflecting rising EBIT in line with 2022 guidance

Strong yoy development in 2020 YTD; slight WC build-up expected going forward

OCF

6,049

~6.6

Improvement mainly driven by EBIT growth

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 58

Cash Flow Outlook: Overview of major drivers (2/2)

2019

2020e

FCF effect

Main Drivers 2020 - 2022

(in €m)

(in €bn)

22e vs 20e

OCF

6,049

~6.6

Improvement mainly driven by EBIT growth

Net Capex excl. B777 order

-2,374

~-2.4

Flat to slight gradual increase in regular gross Capex

B777 order

-1,100

~-0.3

Last tranche of Express B777 Capex in 2021

(2021e: <€300m)

Net Cash for Leases

-2,278

~-2.3

Slightly increasing in line with business growth

Net M&A

680

~-0.1

2019: €+653m China DSC deal;

2020-22e: No significant M&A planned

Net Interest

-110

~-0.1

No major change expected

Free Cash Flow

867

~1.4

Significant improvement in line with 2022 target

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 59

Q2 2020: Major balance sheet movements

€2.25bn senior bonds issuance in May

Update on pension status

Three senior bonds issued:

in €m

  • €750m, 6-year maturity, 0.375% coupon rate

€750m,

9-year maturity, 0.75% coupon rate

4,717

5,234

Total

€750m,

12-year maturity, 1% coupon rate

Average

Balance sheet extension:

Increase in non-current financial liabilities

Germany

Increase in cash position and current financial assets

12,773

13,222

4.6

Cash & Cash

2.9

2.6

UK

equivalents,

Mar 31st, 2020

Jun 30th, 2020

in € bn

Plan Assets

Net Pension Provision

31.12.19

30.03.20

30.06.20

Discount rates

1.87%

1.47%

1.70%

1.50%

2.30%

1.40%

Mar 31st 2020

Jun 30th 2020

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 60

Capex outlook: 2019 peak due to B777 order

in € m

3,617

2,828

1,100

180

B777 order

2,268

Group Capex excl. B777

1,876

2,024

2,074

1,747

2,648

2,517

2013

2014

2015

2016

2017

2018

2019

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 61

Group ROCE up despite significant B777 investment in 2019

Group ROCE vs WACC

Under IFRS16

14.1%

14.7%

as of FY18

12.3%

11.9%

11.1%

11.6%

10.8%

9.0%

11.4%

WACC (8.5%)

6.8%

2010

2011

2012

2013

2014

2015*

2016

2017

Group ROCE = Group EBIT / (Total assets - current liabilities)

  • IFRS16 introduction in FY 2018 set a new base for Group ROCE by adding full lease commitments into CE, even though actual cash outs are expensed later through the contract period
  • 2019 EBIT growth drove increase in Group ROCE despite significant investment in Express asset base through intercontinental fleet renewal (B777 order)

*2015 EBIT adjusted for NFE-write off;

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 62

Balance sheet continues to show healthy leverage ratios

48.2%

27.6%

1.9x (2018)

1.7x (2019)

5.9x

Net Gearing

Equity Ratio

Net Debt / EBITDA

Interest Cover

in €m

52,169

13,367

Pension Provisions

Other Provisions

Current liabilities

7,812

Non-current liabilities

4,128

Equity

698

Total Equity

Net Debt

EBITDA

EBIT

Interest Expense

& Liabilities

31.12.2019

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 63

DPDHL Group Pensions - DBO and DCO plans

in €m

DBO

Defined Benefit

(Staff Costs & Change in Provisions)

Defined Contribution (Cash out = staff costs in EBIT)

Civil Servants in GermanyHourly workers & salaried employees*

*mainly outside Germany

4,717

5,234

163

193

162

187

193

12,773

13,222

218

268

264

266

230

168

83

531

516

493

461

449

409

276 317 305 300 307

347

Mar 31st 2020

Jun 30th 2020

2014 2015

2016

2017

2018 2019

2014 2015 2016 2017 2018 2019

2014 2015 2016 2017 2018 2019

Plan Assets

Net Pension Provision

Current service costs

Change in provisions

Discount Rate

Germany

UK

Other

Total Average

Mar 31st 2020

1.70%

2.30%

1.72%

1.87%

Jun 30th 2020

1.50%

1.40%

1.50%

1.47%

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 64

Investor Relations Contact

Martin Robert Schneider Sebastian Slania Christian Rottler Agnes Putri Ziegenbalg

+49 228 182 63000

+49 228 182 63201

+49 228 182 63203

+49 228 182 63206

+49 228 182 63207

m.ziegenbalg@dpdhl.com

christian.rottler@dpdhl.com

a.putri@dpdhl.com

robert.schneider1@dpdhl.com

sebastian.slania@dpdhl.com

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 65

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 statements. Many of these risks and uncertainties relate to factors that are beyond Deutsche Post AG's ability to control or estimate precisely, such as future market and economic conditions, the behavior of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated synergies and the actions of government regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. Deutsche Post AG does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation.
  • This presentation does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any security, nor shall there be any sale, issuance or transfer of the securities referred to in this presentation in any jurisdiction in contravention of applicable law.
  • Copies of this presentation and any documentation relating to the Offer are not being, and must not be, directly or indirectly, mailed or otherwise forwarded, distributed or sent in or into or from Australia, Canada or Japan or any other jurisdiction where to do so would be unlawful.
  • This document represents the Company's judgment as of date of this presentation.

DPDHL GROUP INVESTOR RELATIONS | INVESTOR PRESENTATION | AUGUST 2020

PAGE 66

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