Deutsche Post DHL confirms growth and earnings targets

  • Excellent progress in carbon efficiency: Group achieves own emission target two years ahead of schedule
  • Following the successful financial year 2010, dividend increase to EUR 0.65 per share proposed
  • CEO Frank Appel at today’s Annual General Meeting: “Our future will be all about profitable growth”

Frankfurt am Main, 05/25/2011, 10:00 AM CEST

AGM 2010 Stage

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Annual General Meeting 2010

Following the successful financial year 2010 and the dynamic start in the first three months of 2011, Deutsche Post DHL, the world’s leading mail and logistics group, expects to continue its significant revenue and earnings growth during the rest of the current year and beyond. At today’s Annual General Meeting Frank Appel, Chief Executive Officer of Deutsche Post DHL, confirmed the Group’s targets for 2011 as well as the company’s mid-range guidance.

“As the world’s largest logistics provider, we profited particularly strongly from the ongoing positive growth of the global economy last year because we positioned ourselves at an early stage to be fit for the upswing,” Appel explained. “Thanks to our excellent position, we can and will continue to take advantage of the continuing recovery of the global economy: our future will be all about profitable growth.” Despite the current economic risks, the further recovery in transport volumes observed during the first months of the year would point to a continuation of the economic upswing, the chairman of the company’s Board of Management said. In light of this, the Group continues to project an EBIT of between EUR2.2 billion and EUR2.4 billion for the current financial year. The MAIL division is expected to contribute between EUR1.0 billion and EUR1.1 billion to this result. For the DHL divisions, the Group expects operating earnings to improve to between EUR1.6 billion and EUR1.7 billion.

Mid-term targets confirmed

In his address to the shareholders, CEO Frank Appel also underscored the Group’s mid-term targets: “We want to significantly improve our earnings in the coming years and reach a leading position in our industry in terms of profitability, too.” In the DHL divisions, the Group aims at generating an average annual earnings growth of 13% to 15% through 2015. In the MAIL division, the objective is to stabilize EBIT at a sustainable level of about EUR1 billion.

“I am convinced that we will continue to outgrow our market over the medium term as long as we set our sights on the key drivers of our business success: satisfied customers, dedicated employees and loyal investors,” Appel said. The critical factor for the future success of the Group would be the company’s strong presence in all regions where growth is being generated, he added. “The excellent position of DHL in the world’s growth markets and our dynamic parcel business in Germany create the ideal conditions for sustainable revenue and earnings improvements,” Appel said.

Financial year 2010 in review: revenue and profitability improved significantly

In the financial year 2010, the Group benefited substantially from the recovery of the global economy. The successfully completed restructuring measures also contributed to the Group reaching or exceeding all the financial targets it had set for itself: revenues recorded a measurable increase, climbing by 11.4% to EUR51.5 billion. The slight drop in revenues in the MAIL division could be more than offset by strong growth in the DHL divisions. At EUR2.2 billion, underlying EBIT exceeded the upper end of the upgraded guidance for the company’s operating earnings by more than EUR100 million and was nearly 50% higher than the previous year’s level. For the very first time, the DHL divisions contributed more to the Group’s operating profit than the MAIL division.

In combination with the positive effects stemming from the sale of Postbank, the volume growth realized in the DHL divisions and efficiency improvements produced a fourfold increase in the company’s net profit to EUR2.5 billion. Earnings per share climbed from EUR0.53 in 2009 to EUR2.10 in 2010. CEO Appel said: “With our Strategy 2015, we have charted a clear course for our future development, and we have already made significant progress on this path during the past year.”

Ambitious environmental targets reached ahead of schedule

Appel could also report to shareholders significant progress in the Group’s efforts to achieve its sustainability targets. Deutsche Post DHL was the first global logistics provider to have set itself a quantitative CO2 efficiency target. The stated goal is to improve CO2 efficiency by 30% by the year 2020 over the 2007 levels. At the Annual General Meeting, the CEO announced that the company had already reached the first interim target of the Group-wide GoGreen program – a 10% improvement in the energy efficiency of its own activities by 2012 – in 2010, that is, two years earlier than originally planned. This success was the result of the continuous optimization of the Group’s fleet and network, improvements in the energy efficiency of its buildings and the introduction of innovative technologies, Appel explained.

“Corporate responsibility is an integral part of our Strategy 2015. As a leader in global logistics, we want to actively contribute to a sustainable business and economic development,” he added. “We are proud to have already reached and even exceeded our interim target. This achievement motivates us to achieve even more,” Appel said. In July, the Group will become the first logistics company to offer carbon-neutral shipping for all private-customer parcels in Germany – at no additional cost for the sender.

Dividend increase as a sign of continuity and predictability

In light of the good results of the past financial year, the Board of Management and Supervisory Board proposed a dividend of EUR0.65 per share for 2010 to company shareholders. This represents an increase of EUR0.05 per share from the EUR0.60 per share that the Group paid its shareholders last year. Based on the company’s consolidated net profit adjusted for non-recurring items this dividend proposal reflects a payout ratio of 59 percent. This is within the range of 40 percent to 60 percent that the Group set as a target corridor for future dividend payments in its finance strategy that was published in March last year. Based on the year-end closing price of the Deutsche Post DHL share, dividend yield totals 5.1%. The Group’s dividend policy would be a clear signal for the high level of continuity and predictability that the company set for itself with the new finance strategy, Appel stated.

Deutsche Post DHL intends to further increase share of women on the Supervisory Board

Supervisory Board elections, among other topics, are on the agenda of the Annual General Meeting. Upon conclusion of this year’s Annual General Meeting, the terms of five members of the Supervisory Board expire as planned. While the Supervisory Board proposes the re-election of Werner Gatzer, Elmar Toime and Hero Brahms, Willem G. van Agtmael and Harry Roels will be leaving the Supervisory Board at their own request. In their place, the Supervisory Board proposes that Prof. Dr.-Ing Katja Windt and Thomas Kunz be elected new shareholder representatives on the Supervisory Board. With the election of Prof. Dr.-Ing. Katja Windt, an additional company goal would be reached ahead of schedule: an increase in the share of women on the overall Supervisory Board of Deutsche Post to 30 percent.


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