Deutsche Post DHL Annual Report 2013

2013 Annual Report

Expected Developments

Excerpts from Deutsche Post AG's 2013 Group Annual Report.

Overall Board of Management assessment of the future economic position

Our strong position as market leader in the German mail and parcel business and in nearly all of our logistics activities is the best possible basis for further growth. The Board of Management expects consolidated EBIT to reach between €2.9 billion and €3.1 billion in financial year 2014 and world economic growth to be slightly above the previous year at best. A similar development is expected for world trade. The MAIL division is likely to contribute around €1.2 billion to consolidated EBIT. Compared with the previous year, we expect an additional improvement in overall earnings to between €2.1 billion and €2.3 billion in the DHL divisions. The Corporate Center/Other result should be better than €–0.4 billion. We expect to see a further positive development in EBIT after asset charge and operating cash flow, in line with the EBIT trend.

 

Revenue and earnings forecast

In light of the fact that the world economy again saw below average growth in the reporting year, we expect slight economic expansion at best in 2014. The global trading volumes relevant to our business are expected to perform similarly. We are therefore anticipating a corresponding revenue trend, with increasing revenue, particularly in the DHL divisions.

Against this backdrop, we expect consolidated EBIT to reach between €2.9 billion and €3.1 billion in financial year 2014. The MAIL division is likely to contribute around €1.2 billion to this. Compared with the previous year, we expect an additional improvement in overall earnings to between €2.1 billion and €2.3 billion in the DHL divisions. The Corporate Center/Other result should be better than €–0.4 billion.

In line with our Group strategy, we are targeting organic growth and anticipate only a few small acquisitions in 2014, as in the previous year.

We still intend to achieve the goals we set for the year 2015. Due to the allocation of parts of the parcel business outside Germany to the MAIL division that took effect on 1 January 2014, we are adjusting the anticipated earnings contributions for the year 2015 as follows. In the MAIL division, we now expect at least €1.1 billion rather than the previous estimate of at least €1 billion. Accordingly, we now anticipate the DHL divisions to make a contribution to earnings of between €2.6 billion and €2.8 billion.

Our finance strategy calls for a payout of 40% to 60% of net profits as dividends as a general rule. At the Annual General Meeting on 27 May 2014, we intend to propose to the shareholders that a dividend per share of €0.80 be paid for financial year 2013 (previous year: €0.70).

 

Development of further indicators relevant for internal management

EAC and operating cash flow demonstrate positive trend

With regard to the EBIT after asset charge financial performance metric and operating cash flow, we expect to see a further positive development in financial year 2014 in line with the respective EBIT trend. Here, the continuing rise in business volume may result in an increase in working capital within the individual divisions.

 

Employee opinion survey results again positive

We intend to keep up the positive results that our employee opinion survey achieved in the reporting year. For 2014, we expect to see a slight increase to 71% in the approval rating for the key performance indicator "Active Leadership".

 

Transparent presentation of greenhouse gas efficiency

We intend to increase transparency in our greenhouse gas efficiency because it is the target of our GoGreen environmental protection programme. It will be measured using a CO2 Efficiency Index (CEX), which is based on division and business unit-specific emission intensity figures that show the ratio of the respective emissions to a matching performance indicator. In future, we shall report on this performance metric on a regular basis as an additional non-financial indicator relevant for internal management.

 

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© 2014 Deutsche Post AG
2013 Annual Report

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2013 Annual Report

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