Deutsche Post : Quarterly Statement as at 31 March 2020

QUARTERLY STATEMENT AS AT 31 MARCH 2020

2	BUSINESS PERFORMANCE	10	SELECTED FINANCIAL INFORMATION
2	Organisational changes	10	Income statement
2	Significant events	11	Balance sheet
2	Revenue, earnings and financial position	12	Cash flow statement
5	Divisions	13	Segments by division
9	Changes in expected developments	14	Earnings per share
		14	Issued capital and treasury shares

Selected key figures

				Q 1 2019		Q 1 2020		+/- %
Revenue	€ m	15,353	15,487	0.9
Profit from operating activities (EBIT)	€ m	1,159	592		- 48.9
Return on sales1	%	7.5	3.8		-
EBIT after asset charge (EAC)	€ m	521		- 80		<-100
Consolidated net profit for the period2	€ m	746	301		- 59.7
Free cash flow	€ m		-256		- 409		- 59.8
Net debt3	€ m	13,367	14,061	5.2
Earnings per share4	€	0.60	0.24		- 60.0
Number of employees5		540,245	540,841	0.1

1EBIT / revenue. 2After deduction of non-controllinginterests. 3Prior-year amount as at 31 December. 4Basic earnings per share. 5Headcount at the end of the first quarter, including trainees.

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BUSINESS PERFORMANCE

SELECTED FINANCIAL INFORMATION

BUSINESS

PERFORMANCE

Organisational changes

In the first quarter of 2020, no material changes were made to the Group's organisational structure.

Significant events

As a broadly diversified, globally operating logistics service provider, we are in a more robust position than other companies to master the challenges posed by the current economic situation. However, the restrictions resulting from the COVID-19 pandemic are impacting the entire global economy, including our own business. The situation differs greatly from region to region. Whereas some countries are keeping their borders closed, restricting the flow of goods and imposing lockdowns, others are already starting to lift restrictions in areas with low rates of new infections. In the Divisionschapter, we comment on the different ways in which our divisions were impacted in the first quarter of 2020.

The Board of Management decided at the end of Feb- ruary to terminate the search for a partner for our Street- Scooter activities. We have begun to refocus StreetScooter upon operating its existing fleet and shall discontinue the production of electric vehicles. The negative impact related to StreetScooter in the first quarter of 2020 amounted to €234 million.

Revenue, earnings and financial position

Portfolio unchanged

There were no material changes in our portfolio in the reporting period.

Year starts with higher consolidated revenue

Consolidated revenue rose by €134 million to €15,487 mil- lion in the first quarter of 2020; negative currency effects amounted to €16 million. The proportion of revenue generated abroad decreased from 69.1 % to 68.8 %.

In the previous year, income from the sale of the Supply Chain business in China drove up other operating income considerably. Therefore, in the reporting period, this figure dropped markedly, by €508 million to €422 million.

StreetScooter decision raises depreciation, ­amortisation and impairment losses

Materials expense fell by €104 million to €7,710 million, mainly on account of lower transport and fuel costs. At €5,528 million, staff costs were up €98 million over the previous year's figure, due primarily to an increased head- count in the Express division. Depreciation, amortisation and impairment losses rose sharply to €1,021 million, driven mainly by an increase in capex and especially the StreetScooter decision. Other operating expenses totalled €1,077 million, down slightly from the previous year. This item included negative impacts incurred in the reporting period for StreetScooter and in the previous year for the Supply Chain division.

Consolidated EBIT down 48.9 %

In the first quarter of 2020, consolidated EBIT was €592 mil- lion, appreciably under the previous year's level of €1,159 mil- lion, which included a net effect of €345 million from the sale of the Supply Chain business in China and from restructuring in the Supply Chain and eCommerce divisions. The negative effects of COVID-19 on Group EBIT in the reporting period totalled €210 million compared with the plan. In addition, StreetScooter had a negative impact on earnings. In contrast, net finance costs improved from €−164 million to €−151 million, thanks primarily to higher income from the fair value measurement of stock appreciation rights (SAR s). Profit before income taxes declined €554 million to €441 million. Income taxes fell €113 million to €106 million.

Consolidated net profit below prior-year figure

At €335 million, consolidated net profit in the first quarter of 2020 was well below the prior-year level (€776 mil- lion). Of this amount, €301 million was attributable to ­Deutsche ­Post AG shareholders and €34 million to non-­ controlling interests. Earnings per share declined from €0.60 to €0.24.

Decrease in EBIT after asset charge (EAC)

EAC declined in the first quarter of 2020 from €521 million to €-80 million. Whilst EBIT dropped sharply, the imputed asset charge increased moderately, in particular due to investments in property, plant and equipment in the Express division.

Deutsche Post DHL Group - Quarterly Statement as at 31 March 2020

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BUSINESS PERFORMANCE

SELECTED FINANCIAL INFORMATION

EBIT after asset charge (EAC)

€ m
		Q 1 2019			Q 1 2020		+ / - %
EBIT	1,159		592			- 48.9
Asset charge	- 638		- 672		- 5.3
EAC	521			- 80		<−100

Liquidity remains very solid

The FFO to debt performance metric rose in the first quarter of 2020 compared with 31 December 2019 despite the increase in debt. Funds from operations rose, mainly on account of the increase in operating cash flow before changes in working capital. Reported financial liabilities were also up, due mainly to higher lease obligations and higher amounts due to banks. The adjustment for pensions decreased due to lower pension obligations and despite lower plan assets. Surplus cash and near-cash investments declined, due primarily to the seasonally negative free cash flow. On 31 March 2020, the Group had cash and cash equivalents of €2.6 billion. In view of our solid liquidity, our syndicated credit facility with a total volume of €2 billion was not drawn down during the reporting period.

FFO to debt

€ m

					1 April
		1 Jan. to		2019 to
		31 Dec.		31 March
		2019		2020
Operating cash flow before changes
in working capital	6,045		6,284
Interest received	82		84
Interest paid	608		612
Adjustment for pensions	190		172
Funds from operations, FFO		5,709			5,928
Reported financial liabilities1	16,974		17,360

• Financial liabilities at fair value

		through profit or loss1	23	74
		Adjustment for pensions1	4,872	4,729
		Surplus cash and near-cash
		­investments1, 2	1,916	1,708
Debt		19,907		20,307
FFO to debt (%)		28.7	29.2

• As at 31 December 2019 and 31 March 2020, respectively.

• Reported cash and cash equivalents and investment funds callable at sight, less cash needed for operations.

Capital expenditure for assets acquired at prior-year level

Investments in property, plant and equipment and intangible assets acquired (excluding goodwill) amounted to €453 million in the first quarter of 2020 (previous year: €448 million). As planned, we renewed the Express divi- sion's intercontinental aircraft fleet, with €66 million attributable to assets acquired and €136 million to leased assets.

Higher operating cash flow

In the first quarter of 2020, net cash from operating activ­ ities rose sharply compared with the prior-year period, from €252 million to €750 million. All non-cash income and expenses were adjusted based on EBIT, which at €592 million was down significantly on the prior-year figure (€1,159 million). In the reporting period, this was due to factors including the increase in depreciation, amortisation and impairment losses arising from the refocus of Street- Scooter. In the previous year, payments resulting from the sale of the Supply Chain business in China were shown in net cash from / used in investing activities. The cash outflow from changes in working capital amounted to €758 million, compared with a corresponding outflow of €1,017 million in the prior-year period.

Net cash used in investing activities amounted to €541 million. This compares with a prior-year cash inflow of €90 million. Proceeds from the sale of the Supply Chain business in China exceeded capital expenditure in the previous year. At €597 million in the reporting period, cash paid to acquire property, plant and equipment and intangible

assets decreased from the previous year (€634 million)­ . Although free cash flow declined from €-256 million

to €-409 million, this was only because the previous year's figure included the proceeds from the sale of the Supply Chain business in China.

Deutsche Post DHL Group - Quarterly Statement as at 31 March 2020

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BUSINESS PERFORMANCE

SELECTED FINANCIAL INFORMATION

Calculation of free cash flow

€ m

		Q 1 2019			Q 1 2020
Net cash from operating activities		252		750
Sale of property, plant and equipment
and intangible assets	48		26
Acquisition of property, plant and
equipment and intangible assets	- 634		- 597
Cash outflow from change in property,
plant and equipment and intangible
assets		- 586		- 571
Disposals of subsidiaries and other
business units	657		0
Disposals of investments accounted for
using the equity method and other
investments	0		0
Acquisition of subsidiaries and other
business units	0		0
Acquisition of investments accounted for
using the equity method and other
investments	- 9		- 5
Cash inflow / outflow from ­
divestitures / acquisitions		648			- 5
Proceeds from lease receivables	7		6
Repayment of lease liabilities	- 472		- 482
Interest on lease liabilities		-101			-102
Cash outflow from leases	- 566		- 578
Interest received	16		18
Interest paid		-20			-23
Net interest paid	- 4		- 5
Free cash flow	-256		- 409

At €455 million, net cash used in financing activities was €17 million lower than in the previous year. Funds were borrowed, amongst other things, for the renewal of the intercontinental Express aircraft fleet. Cash and cash equiva­ lents fell from €2,862 million as at 31 December 2019 to €2,578 million­.

Consolidated total assets down slightly

The Group's total assets amounted to €52,147 million as at 31 March 2020, just below the level at 31 December 2019 (€52,169 million).

Non-current assets were at the same level as on the comparative reporting date. Other non-current assets rose from €395 million to €453 million because actuarial gains increased pension assets. In contrast, intangible assets declined by €69 million to €11,918 million, due mainly to a decrease in goodwill resulting from negative currency effects. Other current assets rose sharply from €2,598 million to €3,141 million. This figure includes the deferred expense of €282 million at the reporting date that was recognised for the prepaid annual contribution to civil servant pensions to Bundesanstalt für Post und ­Telekommunikation. Trade receivables declined by €206 million to €8,355 million. Cash and cash equivalents fell by €284 million to €2,578 million.

At €14,398 million, equity attributable to Deutsche­ ­Post AG shareholders was higher than at 31 Decem- ber 2019 (€14,117 million). Consolidated net profit and actuarial gains from pension obligations increased this figure, whilst currency effects decreased it. Financial liabilities

rose from €16,974 million to €17,360 million, primarily as a result of higher lease liabilities of €178 million. Moreover, we took out loans amounting to €146 million to finance the renewal of our intercontinental Express aircraft fleet. Other current liabilities were also up, from €4,913 million to €5,325 million, due primarily to an increase in liabilities to employees, such as holiday entitlements. Trade payables, on the other hand, decreased significantly by €970 million to €6,255 million as at the reporting date.

Net debt totals €14,061 million

Our net debt rose from €13,367 million as at 31 Decem- ber 2019 to €14,061 million as at 31 March 2020, mainly on account of the increase in financial liabilities.

Net debt

€ m	31 Dec.	31 March
				2019		2020
Non-current financial liabilities	13,708		14,405
		Current financial liabilities	2,916		2,660
Financial liabilities1	16,624		17,065
		Cash and cash equivalents	2,862		2,578
Current financial assets	394		425
		Positive fair value of non-current
		financial derivatives2	1		1
Financial assets	3,257		3,004
Net debt	13,367		14,061

• Less operating financial liabilities.

• Recognised innon-current financial assets in the balance sheet.

Deutsche Post DHL Group - Quarterly Statement as at 31 March 2020

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BUSINESS PERFORMANCE

SELECTED FINANCIAL INFORMATION

Divisions

Performance varies between the different business units

Post & Parcel Germany:­ revenue

POST & PARCEL GERMANY­ DIVISION

Key figures, Post & Parcel ­Germany

€ m	Q 1 2019		Q 1 2020		+ / - %
		adjusted1
Revenue	3,814		3,959		3.8
of which Post Germany­	2,077		2,125		2.3

Letter mail volumes were within the expected range until the middle of March, after which the decline accelerated due to COVID-19. Mail Communication revenues improved due to the previous year's postage rate increase and the transfer of revenue and volumes from non-promotional bulk mail items from Dialogue Marketing.

In contrast, Dialogue Marketing registered significant declines in both addressed and unaddressed mail. Since the middle of March, the downturn has been the result of

€ m

Post Germany­

of which Mail Communication

Dialogue Marketing

Other / Consolidation (Post Germany)­

Parcel Germany­

Q 1 2019		Q 1 2020		+ / - %
adjusted1
2,077		2,125		2.3
1,338		1,463		9.3
545		483			-11.4
194		179			-7.7
1,145		1,258		9.9

Parcel Germany­	1,145	1,258	9.9
International	554	540		-2.5
Other / Consolidation	38	36		- 5.3
Profit from operating activities
(EBIT)	227	334	47.1

pandemic-related revenue losses and cuts in advertising budgets.

The German parcel business saw moderate growth in

• Reported figures adjusted to reflect new product structure.

Post & Parcel Germany:­ volumes

Return on sales (%)2		6.0		8.4		-
Operating cash flow		-153	229		>100

• Reported figures adjusted to reflect new product structure.
  2EBIT/revenue.

volumes until mid-March, as expected. The higher volumes - supported by price increases - led to revenue growth of around 10 % in the first quarter. Since the COVID-19-­related restrictions imposed by the German government in the middle of March - particularly for retail sale - volumes have been well above the prior-year level and rose dramatically after the end of March.

Mail items (millions)

Post Germany­

of which Mail Communication

Dialogue Marketing

Parcel Germany­

Q 1 2019		Q 1 2020		+ / - %
adjusted1
4,125		3,846			- 6.8
1,735		1,766		1.8
2,080		1,834			-11.8
335		346		3.3

Revenue surpasses prior-year level

Division revenue was up 3.8 % year-on-year to €3,959 mil- lion in the first quarter of 2020. The increase was driven by price increases in the German mail business and especially growth in parcel deliveries. In addition, revenue benefitted from an additional 0.6 working days compared with the prior-year period.

We have modified the reporting structure of the division so that revenues from transporting documents and goods across Germany's borders are now presented as International.

With respect to the cross-border transport of documents and goods, business was volatile in the first few weeks of the year due to export restrictions imposed in parts of the world. Imports were heavily impacted by declines in volumes coming from China. Exports of goods and documents also registered progressive declines in both

Europe­ and the rest of the world. All in all, revenue dropped in the latter part of the quarter in the wake of the spread of COVID-19 and the restrictions placed on movements of people and goods in addition to decreasing transport ­capacity.

• Reported figures adjusted to reflect new product structure.

EBIT rises despite negative impact of COVID-19

Division EBIT surged 47.1 % in the first quarter of 2020 to reach €334 million. The increase was attributable above all to higher revenues and strict cost management. In view of the accelerated revenue declines attributable to COVID-19 - especially in Dialogue Marketing - and additional expenses incurred to secure our operations, we are recording an overall impact of the pandemic on first-quarter earnings of €44 million.

Deutsche Post DHL Group - Quarterly Statement as at 31 March 2020

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BUSINESS PERFORMANCE

SELECTED FINANCIAL INFORMATION

EXPRESS DIVISION

Key figures, Express

€ m

			Q 1 2019			Q 1 2020		+ / - %
Revenue	3,971		4,150		4.5
of which Europe­	1,809		1,875		3.6
Americas	818		909		11.1
Asia Pacific	1,380		1,462		5.9
MEA
(Middle East and Africa)	294		314		6.8
Consolidation / Other	-330		- 410		-24.2
Profit from operating activities
(EBIT)		453			393			-13.2
Return on sales (%)1		11.4			9.5			-
Operating cash flow	657		683		4.0

• EBIT / revenue.

Growth in revenues and volumes

Revenue in the division increased by 4.5 % to €4,150 million in the first quarter of 2020. This figure includes currency losses of €3 million. Excluding these losses, the increase in revenue was 4.6 %. The revenue figure also reflects the fact that fuel surcharges were higher in all regions compared with the previous year. Excluding currency effects and fuel surcharges, revenue was up by 3.5 %.

The effects of COVID-19 were felt in the global express business in line with the spread of the pandemic. Although business in China already registered a noticeable recovery

in March, business in Europe­ and North America experienced a trend at the end of the reporting period similar to that in China in February.

Per-day revenues and shipment volumes were up in both of our product areas during the reporting period.

Express: revenue by product

€ m per day1

		Q 1 2019			Q 1 2020		+ / - %
Time Definite International (TDI)	47.8		50.1		4.8
Time Definite Domestic (TDD)	4.6		4.8		4.3

• To improve comparability, product revenues were translated at uniform exchange rates. Product revenue is also taken as the basis for the weighted calculation of working days.

Express: volume by product

Items per day (thousands)

		Q 1 2019			Q 1 2020		+ / - %
Time Definite International (TDI)		949			955			0.6
Time Definite Domestic (TDD)	501		534		6.6

Moderate volume growth in the ­Europe region

Revenue in the Europe­ region increased by 3.6 % to €1,875 million in the first quarter of 2020. That figure includes foreign currency losses of €5 million; growth excluding currency effects was 3.9 %. In the TDI product line, revenues per day increased by 2.3 % and per-day volumes by 1.5 %.

TDI shipments up sharply in the Americas region

In the Americas region, revenue increased by 11.1 % to €909 million in the first quarter of 2020. Excluding currency losses of €6 million, revenue rose by 11.9 %. Per-day TDI volumes were up a strong 8.3 % over the previous year. Per-day revenues grew by 6.1 %.

Operating business in the Asia Pacific region registers growth

In the Asia Pacific region, revenue improved by 5.9 % to €1,462 million in the first quarter. No significant currency effects are included in that figure. In the TDI product line, per-day revenues rose by 6.3 % whilst per-day volumes declined by 0.8 %.

MEA region also registers revenue growth

Revenue in the MEA (Middle East and Africa) region improved by 6.8 % to €314 million in the reporting period. That figure includes foreign currency gains of €3 million. Excluding those currency effects, revenue increased by 5.8 %. Per-day TDI revenues rose by 3.7 % and per-day volumes decreased by 16.8 %.

EBIT declines at the beginning of the year due to the impact of the pandemic

Division EBIT dropped 13.2 % to €393 million in the first quarter of 2020. The negative impact of the COVID-19 pandemic amounted to around €90 million.

Deutsche Post DHL Group - Quarterly Statement as at 31 March 2020

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BUSINESS PERFORMANCE

SELECTED FINANCIAL INFORMATION

GLOBAL FORWARDING, FREIGHT DIVISION

Key figures, Global Forwarding, Freight

€ m

Declining air and ocean freight volumes

We registered a decline of 10.7 % in air freight volumes in the first quarter of 2020, due mainly to the decrease in market volumes as a result of COVID-19. Whereas business

Global Forwarding: volumes

Thousands

				Q 1 2019		Q 1 2020		+ / - %
Air freight	tonnes	887		792		-10.7

Revenue

of which Global Forwarding

Freight

Consolidation / Other

Profit from operating activities (EBIT)

Return on sales (%)1

Operating cash flow

Q 1 2019		Q 1 2020		+ / - %
3,762		3,608			- 4.1
2,638		2,525			- 4.3
1,157		1,111			- 4.0
-33		-28	15.2
100		73			-27.0
2.7		2.0			-
52			- 92		<-100

in China already saw a noticeable recovery in March, volume downturns are being seen at the end of the reporting period in ­Europe and North ­America in particular. Market capacity has suffered even more than volumes. First-quarter air freight revenues dropped 3.9 %, whereas gross profit

improved­ by 0.9 %.

Ocean freight volumes were down 5.7 % year-on-year, likewise due to the pandemic. Ocean freight revenues fell by 6.2 % and gross profit by 5.8 %. The share of revenue

of which exports		tonnes	495	448		- 9.5
Ocean freight		TEU1		752	709		- 5.7

• Twenty-footequivalent units.

Lower revenue from European­ overland transport business

Revenue in the Freight business unit decreased by 4.0 %

• EBIT / revenue.

Earnings decline in the wake of COVID-19

The international air and ocean freight business was also impacted by the pandemic in the first quarter of 2020, with division revenue dropping 4.1 % to €3,608 million. Excluding foreign currency losses of €17 million, revenue was 3.6 % below the prior-year level. In the Global Forwarding business unit, revenue was down 4.3 % to €2,525 million. The decline amounted to 3.9 % excluding foreign currency losses of €9 million. The Global Forwarding business unit's gross profit declined from €604 million in the previous year to €590 million.

related to industrial project business and reported under Other remained nearly constant, at 33.1 % (previous year: 33.9 %). Gross profit from industrial projects improved by 2.5 %.

Global Forwarding: revenue

€ m

		Q 1 2019			Q 1 2020		+ / - %
Air freight	1,202		1,155			-3.9
Ocean freight	887		832			- 6.2
Other		549			538			-2.0
Total	2,638		2,525			- 4.3

to €1,111 million in the first quarter of 2020, due in part to foreign currency losses of €8 million and negative effects from COVID-19. The 1.6 % volume growth was driven in part by B2C business in Scandinavia. The business unit's gross profit declined slightly by 2.1 % to €282 million.

First-quarter dip in EBIT

Division EBIT fell from €100 million to €73 million in the first quarter of 2020. The negative effects of the COVID-19 pandemic amounted to €33 million.

Deutsche Post DHL Group - Quarterly Statement as at 31 March 2020

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BUSINESS PERFORMANCE

SELECTED FINANCIAL INFORMATION

SUPPLY CHAIN DIVISION

Key figures, Supply Chain

Supply Chain: revenue by sector and region, Q 1 2020

Total revenue: €3,229 million

ECOMMERCE SOLUTIONS DIVISION

Key figures, eCommerce Solutions

€ m

Revenue

of which EMEA (Europe,­ Middle East and Africa)

Americas

Asia Pacific

Consolidation / Other

Profit from operating activities (EBIT)

Return on sales (%)2

Operating cash flow

Q 1 2019		Q 1 2020		+ / - %
adjusted1
3,292			3,229			-1.9
1,714		1,643			- 4.1
1,063			1,144			7.6
521		448			-14.0
- 6		- 6	0.0
486		105			-78.4
14.8		3.3			-
- 87		-29	66.7

of which Retail		28 %
Consumer		23 %
Auto-mobility		15 %
Technology		12 %
Life Sciences & Healthcare		10 %
Engineering & Manufacturing		6 %
Others		6 %
of which ­Europe / Middle East / Africa / Consolidation		51 %
Americas		35 %
Asia Pacific		14 %

€ m
		Q 1 2019			Q 1 2020		+ / - %
Revenue	999		996			- 0.3
of which Americas	283		297		4.9
­Europe	579		570			-1.6
Asia	139		131			- 5.8
Other / Consolidation	-2		-2	0.0
Profit / loss from operating
activities (EBIT)	-28	6		>100
Return on sales (%)1		-2.8			0.6			-
Operating cash flow	21		85		>100

• EBIT / revenue.

• Prior-yearfigures adjusted due to reclassifications.
  2EBIT / revenue.

Revenue trend suffers from business divestitures and coronavirus pandemic

Revenue in the division was down by 1.9 % to €3,229 million in the first quarter of 2020. In addition to business dives- titures, the decline included the effects of the COVID-19 pandemic in March. Excluding those factors and foreign currency losses amounting to €5 million, business improved in nearly all regions during the first quarter.

The Americas region registered growth in almost all sectors. However, most sectors in the EMEA and Asia Pacific regions were negatively impacted by COVID-19. Current statistics indicate that the automotive and fashion sectors have experienced a serious downturn due to production halts and the drop in demand resulting from the pandemic, whereas the food industry and the health sector have seen positive effects.

New business worth around €135 million secured

In the first quarter of 2020, the division concluded add­ itional contracts worth around €135 million in annualised revenue with both new and existing customers. The Auto-­ mobility, Retail and Consumer sectors accounted for the majority of the new business. The annualised contract renewal rate remained at a consistently high level.

Solid earnings growth detracted by pandemic

EBIT in the division dropped to €105 million in the first quarter of 2020 (previous year: €486 million). In the same period last year, EBIT was impacted by the sale of our business in China totalling €426 million and strategic cost initiatives

totalling­ €58 million. The pandemic led to additional losses totalling €31 million in the first quarter of 2020, especially in ­Europe.

Slight first-quarter revenue decline

Division revenue came to €996 million in the first quarter of 2020, nearly reaching the prior-year figure of €999 million. The impact of COVID-19 varied greatly from region to re- gion. Although B2C business was up across the board, the increase was unable to compensate for the heavy declines in B2B volumes and additional costs, above all in Spain and India. Whereas revenue increased in the ­Americas region,

it was down moderately in Europe­ and noticeably in Asia. Excluding foreign currency gains of €9 million, revenue fell by 1.2 % year-on-year. The decrease was also attributable to portfolio adjustments totalling €50 million in the first quarter of 2019; excluding these, revenue rose by 4.0 % in the first quarter of 2020 compared with the prior-year ­period.

Deutsche Post DHL Group - Quarterly Statement as at 31 March 2020

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BUSINESS PERFORMANCE

SELECTED FINANCIAL INFORMATION

Improvement in EBIT after prior-year restructuring expenditures

Division EBIT increased to €6 million in the first quarter of 2020 (previous year: €-28 million). EBIT for the first quarter of 2019 was diminished mainly by net restructuring expenses of €23 million, incurred amongst other things for portfolio optimisation, overhead reductions and loss allowances. The negative effects of the pandemic on div­ ision earnings amounted to €12 million in the first quarter of 2020.

Changes in expected developments

Measures to contain the spread of COVID-19 yield first results; risk of a second wave remains

The current global economic cycle continues to be dominated by the COVID-19 pandemic. In its forecast dated 15 April 2020, IHS Markit projected a 3.0 % decline in global economic activity in 2020. The forecast assumes that the restrictions put in place to contain the pandemic will be lifted in key industrial markets in the second half of 2020, followed by a gradual return to normal business activ- ity, including transport and logistics. However, a second, strong, global wave of the contagious disease would lead to a resumption of containment measures. A renewed, even steeper global recession would follow.

In view of the uncertainty surrounding the impact of the pandemic on the global economy, on 7 April 2020 the Group withdrew its EBIT forecast for the current financial year. However, the Group confirmed its medium-term guidance of EBIT of at least €5.3 billion in 2022. The cumulative guidance for capex and free cash flow from 2020 to 2022 remains in effect as well, albeit subject to reservations relating to the still-to-be quantified impact of COVID-19 on free cash flow in the current year.

In addition to the EBIT forecast, we have also cancelled all other forecast elements relating to the current year, such as those to capex. We are reiterating the remaining statements made under "Expected financial position" ­on page 62 of the 2019 Annual Reportwith respect to the full year 2020.

The risk posed by the effects of COVID-19 is high over- all. Additional information can be found under Divisions.We have, meanwhile, assessed the aggregate impact of foreign currency translation as presenting a risk of medium significance.

The Group's overall opportunity and risk situation did not otherwise change significantly during the first quarter of 2020 compared with the situation described in the­2019 Annual Report beginning on page 63.Based upon the Group's early warning system and in the estimation of its Board of Management, there were no identifiable risks for the Group in the current year which, individually or collect­ ively, cast doubt upon the Group's ability to continue as a going concern. Nor are any such risks apparent in the fore-

seeable future.

Deutsche Post DHL Group - Quarterly Statement as at 31 March 2020

9

BUSINESS PERFORMANCE

SELECTED FINANCIAL INFORMATION

INCOME STATEMENT

1 January to 31 March

€ m

		2019		2020
Revenue	15,353		15,487
Other operating income	930		422
Changes in inventories and work performed and capitalised	90		20
Materials expense	-7,814		-7,710
Staff costs	- 5,430		- 5,528
Depreciation, amortisation and impairment losses	- 883		-1,021
Other operating expenses	-1,086		-1,077
Net loss from investments accounted for using the equity method	-1		-1
Profit from operating activities (EBIT)	1,159		592
Financial income		52			85
Finance costs		-211			-207
Foreign currency losses		- 5			-29
Net finance costs		-164		-151
Profit before income taxes	995		441
Income taxes	-219		-106
Consolidated net profit for the period		776			335
attributable to Deutsche Post AG shareholders		746			301
attributable to non-controlling interests		30			34
Basic earnings per share (€)	0.60		0.24
Diluted earnings per share (€)	0.60		0.24

Deutsche Post DHL Group - Quarterly Statement as at 31 March 2020

10

BUSINESS PERFORMANCE

SELECTED FINANCIAL INFORMATION

BALANCE SHEET

€ m
		31 Dec. 2019			31 March 2020
ASSETS
Intangible assets	11,987		11,918
Property, plant and equipment		21,303			21,313
Investment property		25			24
Investments accounted for using the equity method		123			127
Non-current financial assets		759			706
Other non-current assets		395			453
Deferred tax assets		2,525			2,569
Non-current assets	37,117		37,110
Inventories	396		312
Current financial assets	394		425
Trade receivables	8,561		8,355
Other current assets	2,598		3,141
Income tax assets	232		226
Cash and cash equivalents	2,862		2,578
Assets held for sale	9		0
Current assets		15,052		15,037
TOTAL ASSETS	52,169		52,147

		31 Dec. 2019			31 March 2020
EQUITY AND LIABILITIES
Issued capital	1,236		1,235
Capital reserves		3,482			3,539
Other reserves		-700			- 863
Retained earnings		10,099			10,487
Equity attributable to Deutsche Post AG shareholders	14,117			14,398
Non-controlling interests	275			294
Equity		14,392		14,692
Provisions for pensions and similar obligations	5,102		5,013
Deferred tax liabilities	56		42
Other non-current provisions	1,650		1,670
Non-current financial liabilities	13,736		14,433
Other non-current liabilities	360		362
Non-current provisions and liabilities	20,904		21,520
Current provisions		964			921
Current financial liabilities		3,238			2,927
Trade payables	7,225		6,255
Other current liabilities	4,913		5,325
Income tax liabilities	519		507
Liabilities associated with assets held for sale	14		0
Current provisions and liabilities	16,873		15,935
TOTAL EQUITY AND LIABILITIES	52,169		52,147

Deutsche Post DHL Group - Quarterly Statement as at 31 March 2020

11

BUSINESS PERFORMANCE

SELECTED FINANCIAL INFORMATION

CASH FLOW STATEMENT

1 January to 31 March

€ m

		2019		2020
Consolidated net profit for the period	776		335
Income taxes	219		106
Net finance costs	164		151
Profit from operating activities (EBIT)	1,159		592
Depreciation, amortisation and impairment losses	883		1,021
Net loss / income from disposal of non-current assets	- 474	26
Non-cash income and expense	- 45	70
Change in provisions	-112		-26
Change in other non-current assets and liabilities	41			-7
Dividend received	1		0
Income taxes paid	-184		-168
Net cash from operating activities before changes in working capital		1,269			1,508
Changes in working capital
Inventories	- 65	84
Receivables and other current assets	- 829		- 627
Liabilities and other items	-123		-215
Net cash from operating activities	252		750
Subsidiaries and other business units	657		0
Property, plant and equipment and intangible assets	48		26
Other non-current financial assets	15		13
Proceeds from disposal of non-current assets	720		39
Subsidiaries and other business units		0			0
Property, plant and equipment and intangible assets		- 634			- 597
Investments accounted for using the equity method and other investments		- 9			- 5
Other non-current financial assets		-1			- 5
Cash paid to acquire non-current assets	- 644			- 607
Interest received	16		18
Current financial assets	-2	9
Net cash from / used in investing activities	90			- 541

		2019		2020
Proceeds from issuance of non-current financial liabilities	166		156
Repayments of non-current financial liabilities	- 477		- 488
Change in current financial liabilities	- 53	42
Other financing activities	16		1
Cash paid for transactions with non-controlling interests	0			- 4
Dividend paid to non-controlling interest shareholders	-3		-7
Purchase of treasury shares	0			-30
Interest paid	-121		-125
Net cash used in financing activities	- 472		- 455
Net change in cash and cash equivalents		-130			-246
Effect of changes in exchange rates on cash and cash equivalents		41			-38
Changes in cash and cash equivalents associated with assets held for sale		33			0
Cash and cash equivalents at beginning of reporting period		3,017			2,862
Cash and cash equivalents at end of reporting period	2,961		2,578

Deutsche Post DHL Group - Quarterly Statement as at 31 March 2020

12

BUSINESS PERFORMANCE

SELECTED FINANCIAL INFORMATION

Segments by division

1 January to 31 March

€ m	Post & Parcel					Global Forwarding,									eCommerce
			Express			Supply Chain1				Corporate Functions		Consolidation 1, 2					Group
					Germany­	1						Freight							Solutions
		2019		2020				2019		2020			2019		2020			2019		2020				2019		2020			2019		2020			2019		2020			2019		2020
External revenue	3,717		3,859			3,876			4,059		3,523		3,374			3,268			3,205			936			965		33		25			0			0			15,353			15,487
Internal revenue	97		100		95		91		239		234		24		24		63		31		307		344			- 825		- 824		0			0
Total revenue	3,814		3,959		3,971		4,150		3,762		3,608		3,292		3,229			999		996			340			369			- 825		- 824		15,353			15,487
Profit / loss from operating activities (EBIT)		227			334			453			393			100			73			486			105				-28			6			-79			-3203	0		1		1,159		592
of which net income / loss from investments
accounted for using the equity method		0			0			1			1			0			0			0			1				-1			-2			-1			-1			0			0			-1			-1
Segment assets4		5,904			6,146			15,640			15,712			8,714			8,785			7,898			7,861			1,723			1,668			5,495			5,397			- 83			- 81			45,291			45,488
of which investments accounted for using
the equity method	0		0		34		37		22		23		14		15		32		33		21		20			0			-1		123			127
Segment liabilities4	2,707		2,784		3,801		3,577		3,058		2,922		3,144		2,757		629		615		1,530		1,585			- 62		- 61		14,807			14,179
Net segment assets / liabilities4	3,197		3,362		11,839		12,135		5,656		5,863		4,754		5,104		1,094		1,053		3,965		3,812			-21		-20		30,484			31,309
Capex (assets acquired)	85		72		121		173		26		21		75		96		39		11		102		81		0			-1		448			453
Capex (right-of-use assets)	26		2		219		377		35		53		152		308		18		35		130		63		0			0			580			838
Total capex	111		74		340		550		61		74		227		404		57		46		232		144		0			-1		1,028			1,291
Depreciation and amortisation	73		73		313		345		63		62		217		231		49		42		161		252		1		0			877			1,005
Impairment losses		0			0			0			0			0			0			1			0			5			3			0			13			0			0			6			16
Total depreciation, amortisation and
impairment losses	73		73		313		345		63		62		218		231		54		45		161		265		1		0			883			1,021
Other non-cash income (-) and expenses (+)	52		83		51		107		16		28		88		52		16		6		6		58		0		0			229			334
Employees5	157,502		155,431		96,184		98,398		43,956		43,730		156,700		156,926		31,415		29,262		12,655		12,802		0		0		498,412		496,549

1Prior-period amounts adjusted. 2Including rounding. 3Of which StreetScooter €-234 million (previous year: €-19 million). 4As at 31 December 2019 and 31 March 2020. 5Average FTEs.

Adjustment of prior-period amounts

Effective as of 1 January 2020, the fulfilment activities of Home Delivery GmbH were transferred from the Post & Parcel Germany­ segment to the Supply Chain division. The prior-­period amounts have been adjusted accordingly.

Deutsche Post DHL Group - Quarterly Statement as at 31 March 2020

13

BUSINESS PERFORMANCE

SELECTED FINANCIAL INFORMATION

Reconciliation

€ m

Issued capital and treasury shares

		Q 1 2019			Q 1 2020
Total income of reported segments	1,238		911
Corporate Functions	-79		-320
Reconciliation to Group / Consolidation	0		1
Profit from operating activities (EBIT)	1,159		592
Net finance costs	-164		-151
Profit before income taxes		995			441
Income taxes	-219		-106
Consolidated net profit for the period	776		335

Earnings per share

Basic earnings per share

						Q 1 2019			Q 1 2020
Consolidated net profit for the period attributable to Deutsche­	Post AG­	shareholders	€ m	746		301
Weighted average number of shares outstanding				number	1,232,879,764		1,235,054,732
Basic earnings per share				€	0.60		0.24

KfW Bankengruppe (KfW) held 20.53 % of the shares as at 31 March 2020. Free float accounted for 79.26 % of the shares and the remaining 0.21 % of shares are owned by ­Deutsche ­Post AG.

Changes in issued capital and treasury shares

€ m
		2019		2020
Issued capital
Balance at 1 January	1,237		1,237
Addition due to contingent capital increase	0		0
Balance at 31 December / 31 March		1,237		1,237
Treasury shares
Balance at 1 January	- 4		-1
Purchase of treasury shares1	0			-1
Issue / sale of treasury shares	3		0
Balance at 31 December / 31 March	-1		-2
Total at 31 December / 31 March	1,236		1,235

• Rounded below €1 million in the previous year.

Diluted earnings per share

								Q 1 2019			Q 1 2020
Consolidated net profit for the period attributable to Deutsche­	Post AG­	shareholders	€ m	746		301
Plus interest expense on the convertible bond						€ m		2			2
Less income taxes1						€ m	0		0
Adjusted consolidated net profit for the period attributable to Deutsche­	Post AG­	shareholders	€ m	748		303
Weighted average number of shares outstanding						number	1,232,879,764		1,235,054,732
Potentially dilutive shares						number	21,206,525		21,503,815
Weighted average number of shares for diluted earnings						number		1,254,086,289			1,256,558,547
Diluted earnings per share						€	0.60		0.24

• Rounded below €1 million.

Deutsche Post DHL Group - Quarterly Statement as at 31 March 2020

14

BUSINESS PERFORMANCE

SELECTED FINANCIAL INFORMATION

CONTACTS

Deutsche Post AG

Headquarters

Investor Relations

53250 Bonn

Germany

Investor Relations	Press Office
Tel.: + 49 (0) 228	182-6 36 36	Tel.: + 49 (0) 228 182-99 44
Fax: + 49 (0) 228	182-6 31 99	Fax: + 49 (0) 228 182-98 80
E-mail:ir @ dpdhl.com	E-mail:pressestelle @ dpdhl.com

PUBLICATION

Published on 12 May 2020.

The English version of the quarterly statement as at 31 March 2020 of Deutsche ­Post ­DHL Group constitutes a translation of the original German version. Only the German version is legally binding, insofar as this does not conflict with legal provisions in other countries. ­Deutsche ­Post Corporate Language Services et al.

FINANCIAL CALENDAR

2020

2020 Annual ­General ­Meeting	Date pending
Dividend payment	Date pending
Results of the first half of 2020	5 August
Results of the first nine months of 2020	10 November

2021

Results of financial year 2020	9 March
Other dates, revised dates and information regarding live webcasts:
dpdhl.com/en/investors

BASIS OF REPORTING

The document at hand is a quarterly statement pursuant to section 53 of the Börsen­ ordnung für die Frankfurter Wertpapierbörse(BörsO FWB - exchange rules for the Frankfurt Stock Exchange), as amended on 18 November 2019. It is not an interim report as defined in International Accounting Standard (IAS) No. 34. The accounting policies applied to this quarterly statement generally derive from the same accounting policies as used in the preparation of the consolidated financial statements for financial year 2019, with the exception of the new pronouncements required to be applied as at the beginning of the year. However, those standards had no material impact on the financial statements.

This quarterly statement contains forward-looking statements. Forward-looking statements are not historical facts. They also include statements concerning assumptions and expectations. These statements are based upon current plans, estimates and projections, and the information available to ­Deutsche ­Post AG at the time this quarterly statement was completed. They should not be considered to be assurances of the future performance and results contained therein. Instead, they depend on a number of factors and are subject to various risks and uncertainties (particularly those described in the "Changes in expected developments" section) and are based on assumptions that may prove to be inaccurate.

It is possible that actual performance and results may differ from the forward-looking statements made in this quarterly statement. Deutsche­ Post AG­ assumes no obligation beyond the statutory requirements to update the forward-­ looking statements made in this quarterly statement. If ­Deutsche ­Post AG updates one or more forward-looking statements, no assumption can be made that the statement(s) in question or other forward-looking statements will be updated regularly.

Deutsche Post DHL Group - Quarterly Statement as at 31 March 2020

15