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Deutsche Post AG

Quarterly Report Aug 5, 2022

111_10-q_2022-08-05_9f0d29d3-77c7-407a-9443-4d83beb6d3c1.pdf

Quarterly Report

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2022 HALF-YEARREPORT

2INTERIM GROUP MANAGEMENT REPORT

16 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Selected key figures

20
21
H1
20
22
H1
+/–
%
Q2
20
21
Q2
20
22
+/–
%
Rev
en
ue
€m 38
,33
3
46
,6
22
21
.6
19
,47
3
24
02
9
,
23
.4
fit
fro
s (
IT)
Pro
ing
tiv
itie
EB
rat
m o
pe
ac
€m 3,
99
4
4,4
96
12
.6
2,
08
3
2,3
37
12
.2
s1
Re
ale
tur
n o
n s
% 10
.4
9.6 10
.7
9.7
e (
C)
EB
IT a
fte
ch
EA
set
r as
arg
€m 2,6
30
2,
89
8
10
.2
1,3
94
1,5
10
8.3
d2
Co
lida
ted
rof
it f
the
rio
t p
nso
ne
or
pe
€m 2,4
82
2,
81
2
13
.3
29
2
1,
1,4
61
13
.1
ash
flo
Fre
e c
w
€m 2,1
02
8
46
–7
7.7
91
9
66
5
–2
7.6
3
t d
ebt
Ne
€m 12
2
,77
16
,34
4
28
.0
re4
rni
sha
Ea
ng
s p
er
2.0
1
2.3
0
14
.4
1.0
5
1.2
0
14
.3
5
mb
of
loy
Nu
er
em
p
ees
56
8,5
37
58
3,
81
6
2.7

EBIT/revenue. 2 After deduction of non-controlling interests. 3 Prior-year figure as at 31 December. 4 Basic earnings per share. 5 Headcount at the end of the reporting period, including trainees.

GENERALINFORMATION

Organisational changes

No material changes were made to the Group's organisational structure during the reporting period.

Effective as of 1 July 2022, Nikola Hagleitner assumed responsibility on the Board of Management for Post & Parcel Germany from Tobias Meyer, who is now responsible for Global Business Services.

Ken Allen, who had held responsibility for eCommerce Solutions, resigned from the Board of Management with effect from the end of 31 July 2022. Pablo Ciano is the new Board of Management member responsible for eCommerce Solutions from 1 August 2022. John Pearson will be responsible for Customer Solutions & Innovation (CSI) from August.

Research and development

As a service provider, Deutsche Post DHL Group does not engage in research and development activities in the narrower sense and therefore has no significant expenses to report in this connection.

REPORTONECONOMIC POSITION

Economic parameters

The following data describing the economic parameters of the global economy stem from S&P Global Market Intelligence (S&P Global).

The second quarter of 2022 was dominated by the war in Ukraine and the subsequent economic sanctions imposed on Russia by the Western nations. This resulted in an additional surge in inflation, particularly for energy and food. Furthermore, China imposed further pandemicrelated lockdowns in urban regions.

This development forced the central banks, including the US Federal Reserve (Fed) and the European Central Bank (ECB), to tighten their monetary policies substantially. The dampening effect on growth was compensated only in part by recovering activity in the service sector following the loosening of pandemicrelated restrictions. Concurrently, this factor ensured, together with material shortage and a sub-average labour participation rate, persistent pressure on inflation.

In the US, the Fed raised its key interest rate from 0.25% to 0.50% in mid-March, raising the pace of monetary tightening in the second quarter. In mid-June, the fed funds rate was already increased to 1.75%. At the same time, the US dollar appreciated against most other currencies.

Chinese growth declined to near zero in the second quarter, caused by renewed regional lockdowns during March and April. Although restrictions were loosened in steps from May onwards, the risk of a short-term return to limitations on mobility remained high.

Economic activity in Europe was impaired in particular measure by its geographic proximity to Ukraine and also the strong dependency on energy imports from Russia. During the second quarter, this was at least partly compensated for by the support that savings accumulated during the pandemic could provide for consumer demand. However, both business and consumer confidence increasingly suffered around mid-2022 from inflation rates of around 8% and increasing concerns over gas shortages in the upcoming winter. This was reinforced by the monetary policy turnaround by the European Central Bank.

Germany's export-dependent economy suffered to an above-average degree from the ramifications of the war, particularly with respect to energy security. Since its interim high in February, the ifo Business Climate Index has sunk to levels observed in early 2021 during the most acute phase of the second pandemic wave.

Significant events

In August 2021, Deutsche Post DHL Group signed an agreement to acquire the J.F. Hillebrand Group (Hillebrand). After the responsible antitrust authorities gave their approval, the purchase price of €1,452 million was fully paid at the end of March 2022, all shares of Hillebrand were transferred and the acquisition was completed. Initial consolidation resulted in preliminary goodwill of around €1.6 billion.

Results of operations

Changes to the portfolio

In January, we sold the production rights and other assets relating to the production of StreetScooter electric vehicles to ODIN Automotive, Luxembourg.

In March, the subsidiaries of Hillebrand were incorporated into the Global Forwarding, Freight division. There were no other material changes in our portfolio in the reporting period.

Selectedindicators for results of operations

At €1,333 million, other operating income was up substantially on the previous year's figure of €942 million, due to higher income from currency translation as well as income from the remeasurement of liabilities.

Materials expense up significantly

Materials expense climbed significantly by €6,428 million to €26,227 million, primarily as a result of higher transport costs and increased kerosene prices. In addition to currency effects of €1,078 million, the consolidation of exceeding the prior year (€2,153 million) driven by factors such as higher currency translation expenses as well as increased travel, entertainment and training costs. Net income/loss from investments accounted for using the equity method declined substantially: the income of €44 million in the prior year was followed by a loss of €9 million in the reporting period. The figure for the previous year had included income in connection with the IPO of an investment accounted for using the equity method, note 9 to the consolidated financial statements.

Improved consolidated EBIT

Consolidated EBIT increased by €502 million to €4,496 million in the first half of 2022. At €–269 million, net finance costs also improved over the prior-year period (€– 319 million) mainly as a result of lower strain from the measurement of stock appreciation rights (SARs) at fair value. Profit before income taxes climbed substantially by €552 million to €4,227 million. As a consequence, income taxes increased by €197 million to €1,226 million. The tax rate came to 29.0% (previous year: 28.0%)

Increase in consolidated net profit for the period

Consolidated net profit for the period came to €3,001 million in the first half of 2022, substantially exceeding the prior-year figure of €2,646 million. Of this amount, €2,812 million is attributable to Deutsche Post AG shareholders and €189 million to non-controlling interest shareholders. Basic earnings per share improved from €2.01 to €2.30 and diluted earnings per share from €1.96 to €2.25.

H1
20
21
H1
20
22
Q2
20
21
Q2
20
22
Rev
en
ue
€m 38
,33
3
46
,6
22
19
,47
3
24
02
9
,
s (
IT)
fit
fro
ing
tiv
itie
Pro
rat
EB
m o
pe
ac
€m 99
3,
4
96
4,4
2,
08
3
2,3
37

ale
Re
tur
n o
n s
% 10
.4
9.6 10
.7
9.7
fte
ch
e (
C)
EB
IT a
set
EA
r as
arg
€m 2,6
30
2,
89
8
94
1,3
10
1,5
d2
lida
ted
rof
it f
the
rio
Co
t p
nso
ne
or
pe
€m 2,4
82
2,
81
2
1,
29
2
1,4
61
re3
rni
sha
Ea
ng
s p
er
2.0
1
2.3
0
1.0
5
1.2
0

EBIT/earnings. 2 After deduction of non-controlling interests. 3 Basic earnings per share.

Consolidated revenue up 21.6% in the first half of the year

In the first half of 2022, consolidated revenue rose from €38,333 million to €46,622 million, for reasons including positive currency effects of €1,508 million. The initial consolidation of Hillebrand caused revenue to increase by €530 million. A total of 77.0% was generated abroad (previous year: 72.3%). In the second quarter, revenue increased from €19,473 million to €24,029 million, among others as a result of positive currency effects of €961 million.

Hillebrand caused this item to increase by €436 million. Staff costs rose from €11,678 million to €12,820 million, particularly as a result of the increased number of employees. At €2,018 million, depreciation, amortisation and impairment losses were up on the prior-year figure of €1,883 million, one reason for this being the war in Ukraine, which resulted in impairment losses of €31 million on our Russian assets. Of this, the Express division accounted for €24 million and the Global Forwarding, Freight division for €7 million. Other operating expenses came to €2,565 million, thus likewise

Increased EBIT after asset charge (EAC)

In the first half of 2022, EAC climbed from €2,630 million to €2,898 million, mainly as a result of increased profitability. The imputed asset charge rose particularly due to investments in the property, plant and equipment of the Express and Post & Parcel Germany divisions as well as an increase in net working capital. The consolidation of Hillebrand also resulted in an increase in assets.

EBITafter asset charge (EAC)

EA
C
2,
63
0
2,
89
8
10
.2
ch
As
set
arg
e
–1
,36
4
–1
,5
98
–1
7.2
EB
IT
3,
99
4
4,4
96
12
.6
H1
20
21
H1
20
22
+/–
%
€m

Divisions

EXPRESS

Key figures, Express

€m
H1
20
21
H1
20
22
+/–
%
Q2
20
21
Q2
20
22
+/–
%
Rev
en
ue
11
,45
1
13
,36
6
16
.7
5,
95
2
6,
99
3
17
.5
of w
hic
h E
uro
pe
4,
88
7
5,4
69
11
.9
2,5
04
2,
81
7
12
.5
Am
eri
cas
2,3
79
2,
95
9
24
.4
1,
24
4
1,5
61
25
.5
fic
As
ia P
aci
4,1
57
4,
83
6
16
.3
2,1
70
2,5
31
16
.6
A (
)
ME
Mid
dle
Ea
nd
Afr
ica
st a
66
9
76
2
13
.9
33
6
40
0
19
.0
Co
lida
tio
n/O
the
nso
r
–6
41
–6
60
–3
.0
–3
02
–3
16
–4
.6
s (
IT)
fit
fro
ing
tiv
itie
Pro
rat
EB
m o
pe
ac
2,1
38
2,
07
2
–3
.1
1,1
77
01
1,1
–6
.5
s (
%)
1
Re
ale
tur
n o
n s
18
.7
15
.5
19
.8
15
.7
Op
tin
ash
flo
era
g c
w
2,
88
4
2,5
91
0.2
–1
1,4
43
98
2
1.9
–3

EBIT/revenue.

Express: revenue by product

1
€m
r d
pe
ay
H1
20
21
H1
20
22
+/–
%
Q2
20
21
Q2
20
22
+/–
%
al (
I)
Tim
e D
efi
nit
e In
ion
TD
ter
nat
70
.1
79
.7
13
.7
73
.0
83
.6
14
.5
ic (
D)
Tim
efi
nit
e D
e D
est
TD
om
6.1 6.0 –1
.6
6.0 6.1 1.7

1 To improve comparability, product revenues were translated at uniform exchange rates. These revenues are also the basis for the weighted calculation of working days.

Express: volume by product

(
s)
r d
tho
nd
Ite
ms
pe
ay
usa
H1
20
21
H1
20
22
+/–
%
Q2
20
21
Q2
20
22
+/–
%
al (
I)
Tim
e D
efi
nit
e In
ion
TD
ter
nat
1,
21
9
1,1
46
–6
.0
1,
23
2
1,1
68
–5
.2
ic (
D)
Tim
e D
efi
nit
e D
TD
est
om
66
9
57
1
–1
4.6
64
4
56
4
–1
2.4

Continued growth in international revenues

Revenue in the division increased by 16.7% to €13,366 million in the first half of 2022. This figure includes positive currency effects of €531 million; excluding these, the revenue increase was 12.1%. The revenue figure also reflects the fact that fuel surcharges were higher than in the previous year in all regions. Excluding currency effects and fuel surcharges, first-half revenue was up by 5.6%. Revenue per day continued to increase in the TDI product line, whilst this figure declined in the TDD product line. Per-day shipment volumes decreased in both product lines.

Revenue in the Europe region increased by 11.9% to €5,469 million in the first half of 2022. That figure includes negative currency effects of €55 million; growth excluding currency effects was 13.0%. In the TDI product line, revenue per day improved by 13.8%. Per-day TDI shipment volumes decreased by 5.9%. In the second quarter, international per-day revenues were up by 15.9%; shipment volumes were down by 5.0%.

In the Americas region, revenue increased by 24.4% to €2,959 million in the first half of 2022. That figure includes positive currency effects of €205 million; excluding currency effects, revenue increased by 15.8%. Per-day TDI volumes were stable compared with the prioryear period, and per-day revenues were up by 21.8%. In the second quarter, shipment volumes rose by 2.7% and international per-day revenues by 21.7%.

In the Asia Pacific region, half-year revenue improved by 16.3% to €4,836 million. The revenue figure includes positive currency effects of €243 million; revenue growth excluding currency effects was 10.5%. In the TDI product line, per-day revenues rose by 11.1% whilst per-day volumes declined by 7.9%. In the second quarter, international per-day revenues were up by 10.7%; shipment volumes were down by 8.1%.

Revenue in the MEA region (Middle East and Africa) increased by 13.9% to €762 million in the first half of the year. That figure includes positive currency effects of €48 million; excluding currency effects, revenue increased by 6.7%. Per-day TDI revenue improved by 7.5%; per-day volumes were down by 12.4%. In the second quarter, international per-day revenues grew by 12.8%; shipment volumes decreased by 8.3%.

EBIT slightly below prior-year figure

In the first half of 2022, EBIT in the division was €2,072 million, 3.1% below the high level of the prior-year figure. Return on sales decreased from 18.7% to 15.5%. In the second quarter, EBIT in the division was €1,101 million and thus 6.5% below the prior-year figure, due in part to the regional lockdowns in China.

GLOBAL FORWARDING, FREIGHT

Key figures, Global Forwarding, Freight

€m
H1
20
21
H1
20
22
+/–
%
Q2
20
21
Q2
20
22
+/–
%
Rev
en
ue
9,
98
7
15
,51
5
55
.4
23
5,
5
8,1
56
.8
55
of w
hic
h G
lob
al F
ard
ing
orw
7,6
16
12
93
7
,
69
.9
4,
02
6
6,
82
4
69
.5
eig
ht
Fr
2,4
33
2,6
46
8.8 1,
24
0
1,3
69
10
.4
lida
n/O
the
Co
tio
nso
r
–6
2
–6
8
–9
.7
–3
1
–3
7
–1
9.4
fit
fro
s (
IT)
Pro
ing
tiv
itie
EB
rat
m o
pe
ac
52
8
1,3
47
>1
00
31
2
74
6
>1
00
1
ale
s (
%)
Re
tur
n o
n s
5.3 8.7 6.0 9.1
flo
Op
tin
ash
era
g c
w
29
1
1,1
13
>1
00
17
9
69
5
>1
00

EBIT/revenue.

Revenue growth spurred by high freight rate

Revenue in the division increased significantly by 55.4% to €15,515 million in the first half of 2022. Excluding positive currency effects of €487 million, revenue was up by 50.5% year-on-year. Revenue for the second quarter of 2022 rose by 55.8% compared with the prior-year figure. In the Global Forwarding business unit, revenue was up 69.9% to €12,937 million, due primarily to the continued high freight rates in the first half of 2022. Excluding positive currency effects of €515 million, the increase was 63.1%. At €2,562 million in the first half of 2022, gross profit in the Global Forwarding business unit was likewise up significantly on the prior-year figure of €1,496 million.

GlobalForwarding: revenue

To
tal
7,
61
6
12
93
7
,
69
.9
4,
02
6
6,
82
4
69
.5
Oth
er
1,
04
3
1,4
75
41
.4
54
8
81
7
49
.1
fre
ht
Oc
ig
ean
2,7
49
5,
82
9
>1
00
1,4
94
3,
23
0
>1
00
fre
ht
Air
ig
3,
82
4
5,6
33
47
.3
1,
98
4
2,7
77
40
.0
H1
20
21
H1
20
22
+/–
%
Q2
20
21
Q2
20
22
+/–
%
€m

GlobalForwarding: volumes

Th
ds
ou
san
H1
20
21
H1
20
22
+/–
%
Q2
20
21
Q2
20
22
+/–
%
Air
fre
ig
ht
ort
exp
s
ton
nes
1,
01
1
98
6
–2
.5
51
7
47
7
–7
.7
Oc
fre
ig
ht
ean
U1
TE
1,5
51
42
1,6
5.9 78
7
87
6
11
.3

Twenty-foot equivalent units.

Gross profit increase in air and ocean freight

We registered a 2.5% decline in air freight volumes in the first half of 2022, primarily on trade routes to and from China due to the lockdown in Shanghai during the second quarter. At the same time, freight rates remained at a very high level, resulting in revenue from air freight exceeding the prior-year figure by 47.3%. Gross profit improved by 68.6% due to the increasing demand for charter flights amongst other factors. In the second quarter of 2022, air freight revenue rose by 40.0% and gross profit was 67.4% above the prior-year figure.

In the first half of 2022, ocean freight volumes were up 5.9% year-on-year. Excluding the acquisition of Hillebrand, this figure was 0.6% below the prior-year level. The market situation remained strained in light of the continued limited availability of freight capacities.

Ocean freight revenues more than doubled in the first half of the year; excluding Hillebrand, the increase was 95.6%. Gross profit improved by more than 100% in the first half of the year. Revenue increased more than 100% in the second quarter of 2022 as well; excluding Hillebrand, the increase was 85.9%.

Revenue up in European overland transport business

In the Freight business unit, revenue rose by 8.8% to €2,646 million in the first half of 2022, with negative currency effects of €29 million. The volume was down by 3.7% year-on-year. Gross profit for the business unit rose by 6.3% to €670 million. Revenue for the second quarter was up 10.4% year-on-year and volumes were down 4.4%.

Earnings continue to improve

EBIT in the division increased from €528 million to €1,347 million in the first half of 2022, accompanied by an EBIT margin of 8.7%. In the Global Forwarding business unit, EBIT amounted to 49.6% of gross profit. In the second quarter, EBIT in the division increased from €312 million to €746 million.

SUPPLY CHAIN

Key figures, Supply Chain

€m
H1
20
21
H1
20
22
+/–
%
Q2
20
21
Q2
20
22
+/–
%
Rev
en
ue
6,5
56
88
7,
4
20
.3
3,3
15
06
9
4,
22
.7
of w
hic
h E
A (
idd
le E
d A
fric
a)
ME
Eu
e, M
ast
rop
an
3,1
42
3,5
21
12
.1
1,6
09
1,7
66
9.8
eri
Am
cas
2,4
43
3,
26
3
33
.6
1,
21
7
1,7
39
42
.9
fic
As
ia P
aci
98
6
1,1
33
14
.9
49
7
57
8
16
.3
lida
n/O
the
Co
tio
nso
r
–1
5
–3
3
10
0
<–
–8 –1
4
–7
5.0
fit
fro
s (
IT)
Pro
rat
ing
tiv
itie
EB
m o
pe
ac
36
5
44
9
23
.0
19
8
24
4
23
.2
1
ale
s (
%)
Re
tur
n o
n s
5.6 5.7 6.0 6.0
flo
Op
tin
ash
era
g c
w
38
4
22
6
–4
1.1
14
3
11
9
–1
6.8

EBIT/revenue.

Double-digit revenue growth continues

Revenue in the division increased by 20.3% to €7,884 million in the first half of 2022. Excluding positive currency effects of €376 million, revenue was up by 14.5% year-on-year. All regions and sectors generated doubledigit growth rates, with Consumer, Retail and Automobility recording the most significant growth. Amongst other factors, revenue growth is based on growth in eFulfillment and omnichannel solutions, increasing new business and contract renewals. In the second quarter of 2022, revenue increased by 22.7% to €4,069 million.

Supply Chain: revenue by sector and region, H1 2022

Total revenue: €7,884 million

of w
hic
h R
il
eta
28
%
Co
nsu
me
r
23
%
Au
bili
to-
ty
mo
16
%
chn
olo
Te
gy
12
%
Lif
e S
cie
s &
alt
hca
He
nce
re
12
%
ine
eri
ufa
rin
En
& M
ctu
g
ng
an
g
6%
Oth
ers
3%
of w
hic
h E
/M
idd
le E
/Af
rica
/Co
lida
tio
ast
uro
pe
nso
n
45
%
eri
Am
cas
41
%
fic
As
ia P
aci
14
%

New business worth €571 million secured

In the first half of 2022, the division concluded additional contracts worth €571 million in annualised revenue with both new and existing customers, which corresponds to a total contract volume of €2 billion. The Retail and Consumer sectors accounted for the majority of new business, which was largely attributable to eFulfillment and omnichannel solutions. The annualised contract renewal rate remained at a consistently high level.

Profit growth continues

EBIT in the division increased to €449 million in the first half of 2022 (previous year: €365 million). The growth in profit follows the continued positive development of revenue and benefited from productivity increases thanks to digitalisation and standardisation as well as new business with higher-margin solutions. The EBIT margin for the first half of 2022 was 5.7%. EBIT in the division for the second quarter of 2022 amounted to €244 million (previous year: €198 million).

ECOMMERCE SOLUTIONS

Key figures, eCommerce Solutions

€m
H1
20
21
H1
20
22
+/–
%
Q2
20
21
Q2
20
22
+/–
%
Rev
en
ue
2,
88
8
2,
95
7
2.4 1,4
34
1,5
12
5.4
of w
hic
h A
rica
me
s
98
4
1,
02
3
4.0 49
9
52
2
4.6
Eu
rop
e
1,5
73
1,5
81
0.5 77
9
80
2
3.0
As
ia
33
6
35
3
5.1 15
9
18
7
17
.6
Oth
er/
Co
lida
tio
nso
n
–5 0 10
0.0
–3 1 >1
00
fit
fro
s (
IT)
Pro
ing
tiv
itie
EB
rat
m o
pe
ac
23
3
21
1
–9
.4
11
6
10
9
–6
.0
s (
%)
1
Re
ale
tur
n o
n s
8.1 7.1 8.1 7.2
Op
tin
ash
flo
era
g c
w
40
5
29
6
–2
6.9
17
5
12
6
–2
8.0

EBIT/revenue.

Revenue growth in all regions

The division generated revenue of €2,957 million in the first half of 2022, up 2.4% on the prior-year figure. This figure was reduced by €69 million through portfolio adjustments in Asia during the reporting period. Excluding positive currency effects of €129 million, revenue was down by 2.1% year-on-year. Division revenue for the second quarter of 2022 increased by 5.4% to €1,512 million.

EBIT below prior-year level

EBIT in the division was €211 million in the first half of 2022, thus coming in below the prior-year figure of €233 million. This was due primarily to decreasing volumes in B2C business and higher costs. The EBIT margin for the first half of 2022 was 7.1%. EBIT in the division for the second quarter of 2022 amounted to €109 million (previous year: €116 million).

POST & PARCEL GERMANY

Key figures, Post & Parcel Germany

€m
H1
20
21
H1
20
22
+/–
%
Q2
20
21
Q2
20
22
+/–
%
Rev
en
ue
8,7
19
8,
20
8
.9
–5
4,1
64
96
3,
3
.8
–4
of w
hic
h P
Ge
ost
rm
any
87
2
3,
96
3,
6
2.4 83
8
1,
87
8
1,
2.2
l G
Pa
rce
erm
any
06
3,5
05
0
3,
3.0
–1
86
1,6
06
1,5
0.7
–1
ati
al
Int
ern
on
1,
29
2
1,1
51
–1
0.9
61
7
55
8
–9
.6
Oth
er/
lida
tio
Co
nso
n
49 41 –1
6.3
23 21 –8
.7
fit
fro
s (
IT)
Pro
rat
ing
tiv
itie
EB
m o
pe
ac
87
1
59
7
–3
1.5
31
5
24
2
–2
3.2
1
ale
s (
%)
Re
tur
n o
n s
10
.0
7.3 7.6 6.1
ash
flo
Op
tin
era
g c
w
1,1
05
88
0
–2
0.4
49
4
40
1
–1
8.8

1 EBIT/revenue.

Revenue below prior-year level

Division revenue in the first half of 2022 was €8,208 million and therefore 5.9% below the prior-year figure, due primarily to a significant decrease in German parcel business as well as international parcel and letter shipments. Revenue for the second quarter was down 4.8% compared to the prior-year period.

Varying business unit performance

In Mail Communication, revenue and volumes were at the level of the previous year in the first half of 2022, and even exceeded the figures in the second quarter. This is due primarily to price increases for some of the mail products subject to regulation as of 1 January 2022, high rates of postal ballots for the state elections in the spring and one additional working day.

Revenue and volumes in Dialogue Marketing exceeded the figures from the first half of the previous year, which were weakened by the pandemic.

In the first half of 2022, volumes and revenue fell by 16.5% and 13.0%, respectively, in German parcel business within the context of the very high levels of the previous year. Consumer confidence cooled off as a result of inflation and additionally after the outbreak of the war in Ukraine due to uncertainty amongst consumers.

In imports shipped as letter mail, the trend from the first quarter of dropping volumes for lightweight goods from Asia continued in the second quarter of 2022. The very high level of the previous year due to the pandemic was also not achieved for imports shipped as parcels. The same goes for exports of documents to Europe and the rest of the world.

EBIT remains behind the strong first half of the previous year

Division EBIT in the first half of 2022 amounted to €597 million and thus fell 31.5% short of the remarkable prior-year period, in which we generated higher revenues in parcel business in particular due to the pandemic. The revenue decrease in the first half of the year was partially compensated by strict cost management and revenue growth in Dialogue Marketing. In the second quarter of 2022, the negative EBIT trend has eased significantly compared to the first three months of the year.

Sustainability

We are working steadily on implementing our ESG Roadmap and achieving our ESG goals. In the reporting period, absolute greenhouse gas emissions were lower than in the previous year due to the slight decline in transport volumes and better utilisation of the air transport network. Against the backdrop of the current major challenges in the availability of sustainable fuels in air and sea transport, the volumes procured are below our planned figures.

Our climate change targets are developed in accordance with the requirements of the Science Based Targets initiative (SBTi) and were submitted for validation by SBTi in June.

Post &Parcel Germany: revenue

€m
H1
20
21
H1
20
22
+/–
%
Q2
20
21
Q2
20
22
+/–
%
Po
st G
erm
any
3,
87
2
3,
96
6
2.4 1,
83
8
1,
87
8
2.2
of w
hic
h M
ail
Co
ica
tio
mm
un
n
2,6
94
2,7
01
0.3 1,
25
2
1,
27
2
1.6
log
rke
Dia
Ma
tin
ue
g
82
4
90
8
10
.2
41
1
43
2
5.1
Oth
er/
Co
lida
tio
n P
Ge
ost
nso
rm
any
35
4
35
7
0.8 17
5
17
4
–0
.6
Pa
l G
rce
erm
any
3,5
06
3,
05
0
–1
3.0
1,6
86
1,5
06
–1
0.7

Post &Parcel Germany: volumes

il it
s (
mi
llio
ns)
Ma
em
20
21
H1
20
22
H1
+/–
%
Q2
20
21
Q2
20
22
+/–
%
Po
st G
erm
any
6,7
48
7,
08
3
5.0 3,
26
7
3,3
61
2.9
of w
hic
h M
ail
Co
ica
tio
mm
un
n
3,1
30
3,1
52
0.7 1,4
10
1,4
64
3.8
Dia
log
Ma
rke
tin
ue
g
3,1
35
3,4
63
10
.5
1,5
97
1,6
53
3.5
Pa
l G
rce
erm
any
94
6
79
0
–1
6.5
45
7
39
2
–1
4.2

Financial position Updated finance strategy

Selected cash flowindicators

€m
H1
20
21
H1
20
22
Q2
20
21
Q2
20
22
Ca
sh
d c
ash
uiv
ale
30
nts
at
Ju
an
eq
as
ne
88
3,
7
93
3,4
88
3,
7
93
3,4
Ch
in c
ash
d c
ash
uiv
ale
nts
an
ge
an
eq
30
–6
–6
1
20
8
–1
,
–8
07
sh
fro
ing
tiv
itie
Ne
t ca
rat
m o
pe
ac
s
4,7
28
4,4
10
2,
23
8
1,
98
4
sh
d in
/fr
inv
ing
tiv
itie
Ne
t ca
est
use
om
ac
s
90
–1
,4
20
1
84
–6
1,1
64
sh
d in
fin
cin
ctiv
itie
Ne
t ca
use
an
g a
s
–3
86
8
,
–4
,67
2
–2
,76
2
–3
95
5
,

Building on the principles and objectives of financial management, and in light of the Group's strong financial position, the Corporate Board updated the finance strategy in January 2022. It takes into account the shareholders' interests and the lenders' requirements, focusing on value creation through a transparent and effective allocation of capital. It also aims to maintain financial flexibility and a low cost of capital for the Group with a high degree of continuity and predictability for investors, and to support the Group's ESG roadmap.

One key component of the strategy is a stand-alone target rating between "Baa1" and "A3" and "BBB+" and "A– ", respectively. The strategy also sets clear priorities on how available liquidity is allocated. It will first be used to fund business operations, finance organic investments and make regular dividend payments. Thereafter, additional dividend payments or share buy-backs as well as inorganic growth could be considered. In June, our credit rating was upgraded by Moody's Investors Service from A3 to A2 with a continued stable outlook. Furthermore, in April, the outlook on our credit rating was changed from stable to positive by the rating agency Fitch Ratings, dpdhl.com.

Solid liquidity

As of 30 June 2022, the Group's reported liquidity was €4.0 billion, consisting of cash and cash equivalents of €3.5 billion and current financial assets of €0.5 billion. In view of our solid liquidity, the syndicated credit line with a total volume of €2 billion was not drawn. In addition to the syndicated credit line, unused bilateral credit lines totalling €1.3 billion were in place at the reporting date. The €0.5 billion bond issued in June 2012 was repaid in the reporting period. Therefore, as of 30 June 2022, nine bonds with a total volume of €6.2 billion and a volumeweighted average duration of 4.9 years were still outstanding.

Capital expenditure for assets at prior-year level

Investments in property, plant and equipment, and intangible assets (not including goodwill) acquired amounted to €1,362 million in the first half of 2022 (previous year: €1,377 million). As planned, we made additional investments in renewing the Express division's intercontinental aircraft fleet. In this context, two Boeing 777 freighters were delivered and advance payments made towards the new order for a further six freighters of this model. Some of these investments were attributable to rights of use.

For a breakdown of capital expenditure (capex) into asset classes and by division and region see note 11 and 16 to the consolidated financial statements.

Calculationof free cash flow

€m
H1
20
21
H1
20
22
Q2
20
21
Q2
20
22
sh
fro
ing
tiv
itie
Ne
t ca
rat
m o
pe
ac
s
4,
72
8
4,
41
0
2,
23
8
1,
98
4
Sa
le o
f p
lan
nd
uip
d in
ibl
ert
t a
nt
tan
ts
rop
y, p
eq
me
an
g
e a
sse
56 49 19 23
isit
ion
of
lan
nd
uip
d in
ible
Ac
ert
t a
nt
tan
set
qu
pr
op
y, p
eq
me
an
g
as
s
29
–1
,4
87
–1
,4
25
–7
48
–7
sh
tfl
fro
ha
e in
lan
nd
uip
d
Ca
ert
t a
nt
ou
ow
m c
ng
pr
op
y,
p
eq
me
an
int
ibl
ts
an
g
e a
sse
–1
37
3
,
–1
43
8
,
–7
06
–7
25
Dis
als
of
bsi
dia
rie
nd
oth
bu
sin
its
pos
su
s a
er
ess
un
3 64 3 21
isit
ion
of
bsi
dia
rie
nd
oth
bu
sin
its
Ac
qu
su
s a
er
ess
un
0 81
–1
,3
0 –4
isit
ion
of
inv
d f
usi
the
uit
eth
od
d
Ac
est
nts
nte
qu
me
ac
cou
or
ng
eq
y m
an
oth
inv
est
nts
er
me
–2 0 0 0
sh
inf
low
/o
utf
low
fro
m d
ive
sti
es/
uis
itio
Ca
tur
acq
ns
1 –1
31
7
,
3 17
ds
fro
lea
eiv
ab
les
Pro
cee
m
se
rec
14 88 7 46
st f
Int
lea
eiv
ab
les
ere
rom
se
rec
0 9 0 4
Re
of
lea
liab
ilit
ies
nt
pay
me
se
–1
03
3
,
–1
07
5
,
–4
91
–5
50
n le
lia
bili
tie
Int
st o
ere
ase
s
86
–1
–2
12
–9
2
10
–1
Ca
sh
tfl
fo
r le
ou
ow
ase
s
20
–1
5
,
19
0
–1
,
–5
76
10
–6
d (
)
Int
ive
wit
ho
lea
sin
st r
ut
ere
ece
g
33 78 18 57
aid
(w
ith
t le
asi
)
Int
st p
ere
ou
ng
–8
2
–7
5
–5
8
–5
8
t in
id/
eiv
ed
Ne
ter
est
pa
rec
–4
9
3 –4
0
–1
ash
flo
Fre
e c
w
2,
10
2
8
46
91
9
66
5

Decline in net cash from operating activities

Net cash from operating activities decreased from €4,728 million in the prior-year period to €4,410 million in the first half of 2022. The improved EBIT was more than offset by increased income tax payments and, in particular, a higher cash outflow as a result of changes in working capital.

Net cash from investing activities amounted to €201 million, compared with a cash outflow of €1,490 million in the prior year. Payments made for the acquisition of subsidiaries and other business units amounted to €1,381 million and relate primarily to the acquisition of Hillebrand. The disposal of other noncurrent financial assets generated a cash inflow of €210 million, which arose primarily from the repayment of loans granted. The change in current financial assets produced a cash inflow of €2,671 million, following a cash outflow of €145 million in the prior year. During the reporting period, money market funds were, for the most part, sold to cover the dividend payment to the shareholders and the purchase price for Hillebrand.

Free cash flow declined substantially from €2,102 million to €468 million; the decline mainly reflects the payment of the purchase price for Hillebrand. Adjusted for this net cash outflow of €1,379 million, free cash flow stands at €1,847 million.

Net cash used in financing activities rose from €3,868 million to €4,672 million. The dividend payment for 2021 increased by €532 million to €2,205 million. Cash and cash equivalents fell slightly from €3,531 million as at 31 December 2021 to €3,493 million.

Net assets

Selectedindicators for net assets

21
20
22
.9
.7
33
2
,77
16
,34
4
.0
22
.5
.6
42
.1
30
17
39

Inthe first half-year.

Consolidated total assets up

The Group's total assets amounted to €66,351 million as at 30 June 2022 and were thus higher than at 31 December 2021 (€63,592 million).

Non-current assets increased from €40,858 million to €43,799 million. In particular, the initial consolidation of Hillebrand caused intangible assets to increase by €1,830 million to €13,906 million. Property, plant and equipment increased appreciably by €1,432 million to €26,335 million, with capital expenditure and positive currency effects substantially exceeding depreciation, amortisation and impairment losses and disposals. Other non-current assets rose considerably by €260 million to €847 million, particularly because actuarial gains resulted in a substantial increase in pension assets. Current financial assets dropped significantly from €3,088 million to €471 million, due mainly to the sale of money-market funds. Trade receivables increased from €11,683 million to €13,411 million. Other current assets rose by €455 million to €4,043 million. This figure includes the deferred expense of €160 million at the reporting date that was recognised for the prepaid annual contribution to civil servant pensions to the Bundesanstalt für Post und Telekommunikation. Cash and cash equivalents declined slightly by €38 million to €3,493 million. Assets held for sale climbed by €89 million to €110 million due primarily to the fact that we plan to sell our business in Russia.

At €21,844 million, equity attributable to Deutsche Post AG shareholders was higher than at 31 December 2021 (€19,037 million). The consolidated net profit for the period, the remeasurement of pension provisions and currency effects increased this figure, whilst the dividend payment and share buy-backs decreased it. In particular, higher interest rates resulted in a noticeable decline of €2,169 million in provisions for pensions and similar obligations to €2,016 million. At €20,961 million, financial liabilities were €1,064 million higher than the prior-year figure, particularly due to an increase in lease liabilities. Trade payables increased from €9,556 million to €9,828 million. Other current liabilities climbed by €458 million to €6,596 million, due primarily to an increase in liabilities to employees, such as holiday entitlements.

Increase in net debt to €16,344 million

Our net debt rose from €12,772 million as at 31 December 2021 to €16,344 million as at 30 June 2022. At 33.9%, the equity ratio exceeded the figure as at 31 December 2021 (30.7%). Net interest cover jumped from 17.0 to 22.5. Net gearing was 42.1% as at 30 June 2022.

Net debt

t d
eb
Ne
t
12
77
2
,
16
34
4
,
Fi
nci
al a
6,
61
9
ts
na
sse
4,
02
1
fa
f n
Po
sit
ive
ir v
alu
nt
e o
on
-cu
rre
2
fin
cia
l de
riva
tiv
0
an
es
57
fin
l as
Cu
cia
3,
08
8
nt
set
rre
an
s
47
1
sh
d c
ash
ale
Ca
uiv
nts
3,5
31
an
eq
3,4
93
Fi
nci
lia
bil
itie
s1
al
19
39
1
na
,
20
36
5
,
fin
Cu
cia
l lia
bili
tie
2,
80
2
nt
rre
an
s
3,
05
2
fin
No
cia
l lia
bili
tie
16
,5
89
ent
n-c
urr
an
s
17
,31
3
31
De
c.
20
21
30
Ju
ne
20
22
€m

1 Less operating financial liabilities.

2Recognised in non-current financial assets in the balance sheet.

EXPECTEDDEVELOPMENTS, OPPORTUNITIES AND RISKS

Future economic parameters

The ability of Ukraine to withstand the Russian invasion for months now points to a protracted military conflict. This means that an end to burdens on economic activity – arising from, among others, higher energy prices – and resulting inflation pressure should not be expected any time soon. At the same time, the rebounding number of infections demonstrates that there are sizable risks of a return to pandemic-related restrictions in the coming winter.

Economic forecasts are being updated in rapid succession at present. For this report, we refer to the latest information available prior to the editorial deadline.

S&P Global expects global growth of only 2.7% in 2022, compared with the April forecast, which had already been scaled back to 3.2%. In its July forecast, the IMF predicts an increase of global trade volume of 4.1 %, less than half as much as in the previous year. In mid-2022, risks for global demand clearly dominate, both in terms of the growth-dampening and inflation-boosting effects of the war and with respect to resurgent pandemic-related threats. A sustained recovery of intercontinental transport thus appears unlikely ahead of mid-2023.

In the US, average GDP growth should be especially weak at 1.4% in 2022.

GDP in China should grow more strongly (forecast: 4.0%) as a whole despite the second-quarter setback owing to the pandemic. However, a potential renewed introduction of widespread lockdowns would particularly dampen quite significantly the forecast for 2023, currently put at 5.2%.

The eurozone (S&P Global forecast 2.5%) is benefiting from the late easing of restrictions and fiscal support measures. The ECB key interest rate increase by 0.50% on 21 July and the early announcement of further rate hikes over the coming months will improve the chances of a damper being placed on inflation whilst exerting only moderate pressure on the economy, as the latter will continue to be hampered by supply chain constraints rather than the absence of demand.

For Germany, much will depend on whether Russia maintains at least part of its contractually agreed gas exports and an acute gas supply shortage can thus be averts. The extremely high gas prices will possibly force the government to take additional fiscal support measures. German GDP growth currently is expected at only 1.7% in 2022 and 1.2% in 2023.

Expected developments

Business in the first half of 2022 largely matched our expectations with respect to growth trends in B2B volumes, with B2C business also displaying the expected normalisation. The imbalances in international transportation markets also persisted. In the second half of the year, the rate of normalisation of B2C volumes against the high prior-year figures is expected to slow, starting a trend reversal towards the structural growth path. The B2B business is likely to remain caught between trends in demand, on the one hand, and capacity shortfalls, on the other.

Against this backdrop, we continue to expect consolidated EBIT of roughly €8.0 billion in the 2022 financial year (+/– max. 5%). The DHL divisions are still projected to generate total EBIT of approximately €7.0 billion (+/– max. 4%). In the Post & Parcel Germany division, EBIT is forecast to come in at around €1.5 billion (+/– max. 10%). Group Functions is anticipated to contribute approximately €–0.45 billion to earnings.

To facilitate a better assessment of how the emergence of a recessionary economic environment in the second half of the year – as feared by many market observers – could impact on earnings in the current financial year, we have considered a number of different scenarios. Even if the global economy cools dramatically in the second half of 2022, the Group expects EBIT in the lower half of the forecast range, i.e. between €7.6 billion and €8.0 billion. If global GDP growth slows down only gradually in the second half of the year, the Group projects EBIT to be in the upper half of the forecast range, i.e. between €8.0 billion and €8.4 billion. If business performance continues at the same level as in the first six months, the Group believes that EBIT even above the forecast range, i.e. of more than €8.4 billion, is possible.

We still plan to increase capital expenditure (excluding leases) to around €4.2 billion in 2022. Free cash flow (excluding acquisitions/divestments) is projected at around €3.6 billion (+/– max. 5%).

Opportunities and risks

We now assess the aggregated effect of all foreign currency gains and losses as only a risk and an opportunity of low relevance for the Group.

The impact of the war in Ukraine, both the direct effects on our business in Russia and Ukraine and indirect effects, such as higher inflation and the weakening of the global economy, represents a risk of medium significance for us at present.

Declining growth rates in parcel business are also a risk of medium relevance for us.

The Group's overall opportunity and risk situation did not otherwise change significantly during the first half of 2022 as compared with the situation described in the 2021 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 collectively, cast doubt upon the Group's ability to continue as a going concern. Nor are any such risks apparent in the foreseeable future.

INCOMESTATEMENT

€m
No
te
H1
20
21
H1
20
22
Q2
20
21
Q2
20
22
Rev
en
ue
4 38
,33
3
46
,6
22
19
,47
3
24
02
9
,
Oth
tin
inc
er
op
era
g
om
e
5 94
2
1,3
33
52
8
77
0
rfo
Ch
s in
inv
ori
d w
ork
ed
d c
ita
lise
d
ent
an
ge
es
an
pe
rm
an
ap
6 18
8
18
0
15
1
15
2
Ma
ials
ter
ex
pe
nse
–1
9,7
99
–2
6,
22
7
–1
0,
21
6
–1
3,7
43
Sta
ff c
ost
s
–1
1,6
78
–1
2,
82
0
–5
84
0
,
–6
,5
00
De
cia
tio
rtis
ati
d im
irm
los
ent
pre
n, a
mo
on
an
pa
ses
7 –1
88
3
,
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01
8
,
–9
53
–1
00
9
,
Oth
tin
er
op
era
g e
xp
ens
es
8 –2
,15
3
–2
,56
5
04
–1
,1
–1
,35
5
Ne
t in
e f
inv
d f
usi
est
nts
nte
com
rom
me
ac
cou
or
ng
the
uit
eth
od
eq
y m
9 44 –9 44 –7
fit
fro
ing
tiv
itie
s (
IT)
Pro
rat
EB
m o
pe
ac
3,
99
4
4,
49
6
2,
08
3
2,
33
7
Fin
cia
l in
an
com
e
75 19
7
45 10
5
Fin
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STATEMENT OF CHANGESIN EQUITY

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,

SELECTEDEXPLANATORY NOTES

Company information

Deutsche Post AG is a listed corporation domiciled in Bonn, Germany. The condensed consolidated interim financial statements of Deutsche Post AG and its subsidiaries cover the period from 1 January to 30 June 2022 and have been reviewed.

Basis of preparation

1 Basis of accounting

The condensed consolidated interim financial statements as at 30 June 2022 were prepared in accordance with the International Financial Reporting Standards (IFRSs) and related interpretations issued by the International Accounting Standards Board (IASB) for interim financial reporting, as adopted by the European Union. These interim financial statements thus include all information and disclosures required by IFRSs to be presented in condensed interim financial statements.

Preparation of the condensed consolidated interim financial statements in accordance with IAS 34 requires the Board of Management to exercise judgement and make estimates and assumptions that affect the application of accounting policies in the Group and the presentation of assets, liabilities, income and expenses. Actual amounts may differ from these estimates. The results obtained thus far in the 2022 financial year are not necessarily an indication of how business will develop in the future.

The accounting policies applied to the condensed consolidated interim financial statements are generally based upon the same accounting policies used in the consolidated financial statements for the 2021 financial year. Exceptions are the new or revised International Financial Reporting Standards (IFRSs) required to be applied for the first time in the 2022 financial year that, however, have not had a material influence on the consolidated interim financial statements. Detailed explanations of these can be found in the 2021 Annual Report in note 5 to the consolidated financial statements.

The income tax expense for the reporting period was deferred on the basis of the tax rate expected to apply to the full financial year. The tax rate for 2022 increased primarily because the recognition of additional deferred taxes on tax loss carryforwards is expected to be smaller due to the use of tax losses compared with the previous year.

In accordance with IAS 29, Turkey has met the criteria regarding a cumulative inflation rate of more than 100% over a period of three years since the beginning of 2022. As a result of the insignificant effects on the consolidated financial statements, it was decided not to apply the principles of financial reporting in hyperinflationary economies for Turkish companies.

2 Consolidated group

The number of companies consolidated with Deutsche PostAG is shown in the following table:

Consolidatedgroup

31
De
c.
20
21
30
Ju
ne
20
22
lid
nie
Nu
mb
of
ful
ly c
d c
ate
er
on
so
om
pa
s
(su
bs
idi
ari
es)
Ge
rm
an
83 82
Fo
rei
gn
63
6
69
0
mb
of
jo
int
tio
Nu
er
op
era
ns
Ge
rm
an
1 1
Fo
rei
gn
0 0
inv
Nu
mb
of
ted
fo
est
nts
er
me
ac
co
un
r
usi
th
ity
eth
od
ng
e e
qu
m
Ge
rm
an
1 1
rei
Fo
gn
16 18

The increase in the number of companies included in the consolidated group resulted mainly from the acquisition of ocean freight specialist J.F. Hillebrand Group (Hillebrand), including its around 90 companies.

Acquisitions in 2022

The following acquisitions were made in the first half of 2022:

Acquisitions in 2022

uit
Eq
y
int
st
ere
Ac
isi
qu
Cou
ntry
Se
ent
gm
% tio
n d
ate
Glo
ba
l Fo
ard
ing
rw
,
rch
Ma
Ge
rm
any
ht
Fre
ig
10
0
20
22

In March 2022, Deutsche Post DHL Group acquired Hillebrand, including its around 90 companies. Hillebrand is a global service provider specialised in the ocean freight forwarding, transport and logistics of beverages, nonhazardous bulk liquids and other products that require special care. The acquisition enables Global Forwarding, Freight to expand its business in this market segment. In August 2021, Deutsche Post DHL Group had signed an acquisition agreement and had made a deposit of €100 million. Following the clearance of the transaction by the responsible competition authorities, the purchase price of €1,452 million was paid in full at the end of March 2022.

J.F. HillebrandGroup

€m
lim
ina
Pre
ry
fai
lue
r va
No
ent
set
n-c
urr
as
s
10
2
Cu
nt
ets
rre
ass
48
8
Ca
sh
d c
ash
uiv
ale
nts
an
eq
72
AS
SE
TS
66
2
d li
ab
ilit
No
ent
ovi
sio
ies
n-c
urr
pr
ns
an
31
4
nd
liab
ilit
Cu
vis
ion
ies
nt
rre
pro
s a
48
9
EQ
UIT
Y A
ND
LIA
BIL
ITI
ES
80
3
lim
ina
Pre
t a
ts
ry
ne
sse
–1
41
rch
ice
Pu
ase
pr
52
1,4
Dif
fer
en
ce
1,
59
3
llin
int
No
tro
sts
n-c
on
g
ere
11
lim
ina
od
wi
ll
Pre
ry
go
1,
60
4

The acquisition resulted in preliminary goodwill, which currently amounts to €1.6 billion and cannot be deducted from tax. It is mainly attributable to the synergies and network effects expected from the dynamic ocean freight forwarding market. Current assets include trade receivables of €298 million. There was a difference of €21 million between the gross amount and the carrying amount.

The measurement of the assets acquired and liabilities assumed has not yet been completed due to time restrictions. The final purchase price allocation will be presented at a later date.

Since their consolidation, the companies have contributed €530 million to consolidated revenue and €37 million to consolidated EBIT, set against transaction costs of €20 million. If the companies had already been acquired as at 1 January 2022, they would have contributed an additional €437 million to consolidated revenue and €20 million to consolidated EBIT.

Disposal and deconsolidation effects

The following companies were sold in the first half of 2022:

Disposals in 2022

Na
me
Co
try
un
Se
ent
gm
uit
Eq
y
int
st
ere
%
Da
of
dis
al
te
pos
Sig
nif
ica
dis
sal
nt
po
s
Ge
, Ja
rm
any
pa
n,
Str
Sco
nd
bsi
dia
rie
eet
ote
r a
su
s
Sw
itze
rla
nd
Gro
Fu
ion
nct
up
s
10
0
Jan
20
22
ua
ry
ign
ific
isp
Ins
t d
ls
an
osa
Gre
lan
Gm
bH
en
p
Ge
rm
any
Gro
Fu
ion
nct
up
s
10
0
Jan
20
22
ua
ry

Gr
AG
ron
au
er
Sw
itze
rla
nd
Glo
ba
l Fo
ard
ing
eig
ht
, Fr
rw
10
0
rch
20
22
Ma

L G
lob
al F
ard
ing
d'Iv
oir
e S
DH
te
.A.
orw
Co
Ivo
ast
ry
Glo
ba
l Fo
ard
ing
eig
ht
, Fr
rw
10
0
20
22
Ju
ne
L G
lob
al F
ard
ing
(
Se
al)
S.A
DH
orw
neg
Se
al
neg
Glo
ba
l Fo
ard
ing
eig
ht
, Fr
rw
10
0
20
22
Ju
ne

On 3 January 2022, Deutsche Post DHL Group sold the production rights and the complete ownership of the intangible assets for the production of StreetScooter electric vans as well as all shares in StreetScooter Japan K.K. and StreetScooter Schweiz AG to ODIN Automotive S.à r.l., Luxembourg. The sale resulted in disposal gain of €66 million in the 2022 financial year, note 5.

Str
Sco
eet
ote
r
15
0
2
17
1
5
6
11
67
10
66

In addition, the sale of Greenplan GmbH, Germany, a provider of route-planning solutions, resulted in income of €3 million, whilst the sale of Véron Grauer AG, a provider of shipment services, generated income of €5 million. These gains are reported under other operating income. The sale of the two African companies led to a loss of less than €1 million reported under other operating expenses.

3 Significant transactions

Share buy-back of up to €2 billion

In February 2022, the Board of Management of Deutsche Post AG resolved a share buy-back programme for up to 50 million shares at a total purchase price of up to €2 billion. The repurchased shares will either be retired, used to service long-term executive remuneration plans and any future employee participation programmes or used to meet potential obligations if rights accruing under the 2017/2025 convertible bond are exercised. The repurchase via the stock exchange started on 8 April 2022 and will end no later than in December 2024. The buyback programme is based on the authorisation resolved by the company's Annual General Meeting on 6 May 2021, notes14 and 15.

Income statement disclosures

4 Revenue by business unit

€m
H1
20
21
H1
20
22
Ex
pre
ss
11
20
4
,
13
08
4
,
Glo
ba
l Fo
ard
ing
ig
ht
Fre
rw
,
9,
8
35
81
14
4
,
Glo
ba
l Fo
ard
ing
rw
7,4
73
12
,6
99
Fre
ig
ht
1,
88
5
2,1
15
ain
Su
ly
Ch
pp
6,
50
1
7,
84
9
ion
eC
So
lut
om
me
rce
s
2,
82
4
2,
88
8
el G
Po
st
&
P
arc
erm
an
y
8,
42
4
7,
97
2
Po
st G
erm
any
3,
85
1
3,
94
7
l G
Pa
rce
erm
any
91
3,4
04
0
3,
ati
al
Int
ern
on
00
1,
7
92
0
Oth
er
75 65
ion
Gro
Fu
nct
up
s
22 15
To
tal
re
ve
nu
e
38
33
3
,
46
62
2
,

€m H1 2021 H1 2022 Income from currency translation 156 300 Insurance income 142 169 Income from the remeasurement of liabilities 74 160 Income from the disposal of assets 21 99 Operating lease income 58 72 Income from fees and reimbursements 52 61 Income from the reversal of provisions 72 54 Sublease income 36 42 Subsidies 55 37 Income from the derecognition of liabilities 9 24 Income from prior-period billings 42 23 Income from loss compensation 13 20 Recoveries on receivables previously written off 10 9 Income from derivatives 2 3 Reversals of impairment losses on receivables and other assets 10 0 Miscellaneous 190 260 Total 9421.333

6 Changes in inventories and work performed and capitalised

€m
20
21
H1
20
22
H1
Ch
s in
inv
ori
ent
an
ge
es
e (
+)
(–
)
inc
/ex
om
pe
nse
67 30
rk
rfo
ed
d c
ita
lise
d
Wo
pe
rm
an
ap
12
1
0
15
tal
To
18
8
18
0

The changes in inventories relate primarily to property development projects. The increase in work performed and capitalised is attributable to internally generated software.

7 Depreciation, amortisation and impairment losses

€m
H1
20
21
H1
20
22
isa
tio
f a
nd
im
irm
los
Am
ort
ent
n o
pa
ses
int
ibl
of w
hic
h
ts,
on
an
g
e a
sse
los
(p
: 0)
im
irm
ent
s: 0
iou
pa
rev
s y
ear
95 96
cia
tio
f a
nd
im
irm
los
De
ent
pre
n o
pa
ses
lan
nd
uip
rty
t a
nt
on
pro
pe
eq
me
, p
uir
ed
f w
hic
h
acq
, o
(p
: 0)
im
irm
los
: 18
iou
ent
pa
ses
rev
s y
ear
78
6
87
2
cia
tio
f a
nd
im
irm
los
De
ent
pre
n o
pa
ses
rig
ht-
of-
f w
hic
h
set
on
use
as
s, o
los
(p
: 0)
im
irm
: 17
iou
ent
pa
ses
rev
s y
ear
1,
00
2
1,
05
0
of
od
ll
Im
irm
wi
ent
pa
go
0 0
cia
tio
rtis
ati
De
d
pre
n, a
mo
on
an
im
irm
t lo
pa
en
sse
s
1,
88
3
2,
01
8

5 Other operating income

The increase in income from currency translation results from the volatility on the currency markets. This income is offset by corresponding expenses.

Income from the disposal of assets includes, amongst other items, a gain on the disposal of the StreetScooter business.

Miscellaneous other operating income includes a large number of smaller individual items.

Of the impairment losses totalling €35 million, an amount of €31 million refers to Russian companies. In the first half of 2022, the Board of Management resolved to dispose of the Russian operations. Prior to reclassification as assets held for sale and liabilities associated with assets held for sale, impairment losses in the amount of €31 million were required to be recognised for the Russian assets, note 13.

Impairment losses

H1
20
21
H1
20
22
0 12
0 12
0 2
0 5
0 4
0 35

8 Other operating expenses

€m
H1
20
21
H1
20
22
Co
f p
has
ed
cle
ing
d s
rity
st o
urc
an
an
ecu
vic
ser
es
27
3
2
31
Cu
nsl
ati
tra
rre
ncy
on
exp
ens
es
14
4
28
0
efu
nd
nd
Wa
nty
rra
ex
pe
nse
s, r
s a
tio
ent
com
pe
nsa
n p
aym
s
22
6
24
4
Oth
bu
sin
ta
er
ess
xes
13
8
19
3
l an
d t
Tra
rai
nin
ost
ve
g c
s
96 15
2
for
ad
d p
ub
lic
Exp
rtis
ing
ens
es
ve
an
rel
ati
on
s
15
1
148
Ins
sts
ura
nce
co
10
0
13
3
lec
nic
ati
Te
sts
om
mu
on
co
10
7
11
5
Cu
cle
lat
ed
cha
sto
ms
ara
nce
-re
rge
s
91 10
8
Off
ice
d r
il o
utl
eta
et
an
exp
ens
es
10
1
10
7
ite
-do
f c
Wr
ent
set
wn
s o
urr
as
s
75 95
ain
d c
hos
ita
lity
Ent
ert
nt
te
me
an
orp
ora
p
exp
en
ses
38 78
ltin
s (
lud
dv
)
Co
inc
ing
ice
ost
ta
nsu
g c
x a
55 67
Mo
ctio
net
tra
ost
ary
nsa
n c
s
50 56
de
d b
the
nd
alt
Se
rvi
ovi
Bu
nst
ces
esa
pr
y
für
Po
nd
Te
lek
nik
ati
st u
om
mu
on
(
Ge
fed
l po
nd
st a
rm
an
era
tel
ica
tio
)
eco
mm
un
ns
ag
en
cy
83 51
iss
ion
aid
Co
mm
s p
35 47
lun
oci
al b
efi
Vo
tar
ts
y s
en
36 44
al c
Leg
ost
s
31 43
ibu
d f
Co
tio
ntr
ns
an
ees
37 41
of
Los
dis
sal
set
ses
on
po
as
s
37 37
Au
dit
sts
co
14 16
Do
ion
nat
s
12 14
Mis
cel
lan
eo
us
22
3
18
4
To
tal
2,
15
3
2,
56
5

The increase in expenses from currency translation results from the volatility on the currency markets. These expenses are offset by corresponding income.

Miscellaneous other operating expenses include a large number of smaller individual items.

9 Net income from investments accounted for using the equity method

The net income of €44 million generated in the previous year was attributable primarily to Global-E Online Ltd., Israel. The dilution of shares due to this company's initial public offering led to income from remeasurement totalling €39 million.

10 Earnings per share

Basic earnings per share in the reporting period were €2.30 (previous year: €2.01).

Basicearnings per share

sic
rni
Ba
sh
ea
s p
er
are
ng
2.0
1
2.3
0
f sh
We
ig
hte
d a
be
din
uts
tan
ve
rag
e n
um
r o
are
s o
g
mb
nu
er
1,
23
7,5
75
83
8
,
1,
22
2,4
97
96
2
,
lida
ted
rof
it f
the
rio
d a
ibu
tab
le t
Co
t p
ttr
nso
ne
or
pe
o
che
ha
reh
old
De
Po
st A
G s
uts
ers
€m 2,4
82
2,
81
2
H1
20
21
H1
20
22

Diluted earnings per share in the reporting period were

€2.25 (previous year: €1.96).

Dilutedearnings per share

H1
20
21
H1
20
22
Co
lida
ted
rof
it f
the
rio
d a
ibu
tab
le t
t p
ttr
nso
ne
or
pe
o
che
ha
reh
old
De
uts
Po
st A
G s
ers
€m 2,4
82
2,
81
2
Plu
th
rtib
le b
d
s in
ter
est
ex
pe
nse
on
e c
on
ve
on
€m 4 4
1
Les
s in
e ta
com
xes
€m 0 0
Ad
ted
lida
ted
rof
it f
the
d a
ibu
tab
le t
jus
rio
t p
ttr
co
nso
ne
or
pe
o
De
che
Po
st A
G s
ha
reh
old
uts
ers
€m 2,4
86
2,
81
6
We
ig
hte
d a
be
f sh
din
uts
tan
ve
rag
e n
um
r o
are
s o
g
mb
nu
er
1,
23
7,5
75
83
8
,
1,
22
2,4
97
96
2
,
tia
lly
dil
uti
sha
Po
ten
ve
res
mb
nu
er
32
87
,31
4,7
26
23
,37
1,
3
We
ig
hte
d a
be
f sh
s fo
r d
ilut
ed
nin
ve
rag
e n
um
r o
are
ear
gs
mb
nu
er
1,
26
9,
89
0,6
25
1,
24
8,
86
9,1
95
Dil
d e
ing
sh
ute
arn
s p
er
are
1.9
6
2.2
5

Rounded below€1 million.

Balance sheet disclosures

11 Intangible assets and property, plant and equipment

Investments in intangible assets (not including goodwill), property, plant and equipment acquired and right-of-use assets amounted to €2,885 million in the first half of 2022 (previous year: €2,750 million).

Investments

€m
30
Ju
ne
30
Ju
ne
20
21
20
22
ibl
Int
ts
an
g
e a
sse
(no
t in
clu
din
dw
ill)
g g
oo
10
6
12
1
ire
uip
Ac
d p
lan
nd
ert
t a
nt
qu
rop
p
eq
me
y,
Lan
d a
nd
bu
ild
ing
s
76 11
7
Te
chn
ica
l eq
uip
d m
ach
ine
nt
me
an
ry
66 68
uip
Tra
ort
nt
nsp
eq
me
19
3
10
1
Air
ft
cra
47 47
ipm
IT e
ent
qu
22 26
Op
tin
nd
off
ice
uip
nt
era
g a
eq
me
21 29
Ad
nd
de
ent
ets
va
nce
pa
ym
s a
ass
un
r
dev
elo
ent
pm
84
6
85
3
1,
27
1
1,
24
1
Rig
ht-
of-
set
use
as
s
d a
nd
bu
ild
ing
Lan
s
1,
03
3
94
3
chn
l eq
d m
ach
Te
ica
uip
nt
ine
me
an
ry
17 18
Tra
uip
ort
nt
nsp
eq
me
11
2
16
6
ft
Air
cra
13
8
38
8
Ad
ent
va
nce
pa
ym
s
73 8
1,
37
3
1,
52
3
tal
To
2,
75
0
2,
88
5

Goodwill changed as follows:

Change in goodwill

Ba
lan
31
De
be
r/3
0 J
at
ce
cem
un
e
1,
06
5
1,
07
8
dif
fer
Cu
nsl
ati
tra
rre
ncy
on
en
ces
36 18
Im
irm
los
ent
pa
ses
0 0
als
Dis
pos
–1
3
–5
isa
tio
nd
im
irm
t lo
Am
ort
n a
pa
en
sse
s
lan
Ba
at
J
1
ce
an
ua
ry
1,
04
2
1,
06
5
Ba
lan
31
De
be
r/3
0 J
at
ce
cem
un
e
12
41
8
,
14
21
8
,
dif
fer
Cu
nsl
ati
tra
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ncy
on
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ces
39
2
20
5
Dis
als
pos
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4
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s fr
Ad
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sin
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ess
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ns
0 1,6
04
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st
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lan
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1
at
ce
an
ua
ry
12
04
0
,
12
,41
8
20
21
20
22

Additions to goodwill mainly refer to the acquisition of Hillebrand. Disposals concern the companies Greenplan and Véron Grauer.

12 Financial assets

The decline in assets measured at cost concerns the shortterm deposits that expired as scheduled in May 2022. Likewise, assets measured at fair value decreased, largely on account of the sale of money market fund shares. Net impairment losses amounted to €64 million in the first half of 2022 (previous year: €49 million).

Fin
cia
l as
set
an
s
1,
19
0
1,
14
5
3,
08
8
47
1
4,
27
8
1,
61
6
t fa
alu
hro
h p
rof
r lo
As
set
ir v
e t
it o
s a
ug
ss
31
0
32
4
1,
83
1
14
0
2,
14
1
46
4
t fa
ir v
alu
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h o
the
reh
ive
inc
As
set
e t
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r co
mp
ens
om
e
46 57 0 0 46 57
d a
As
set
t co
st
s m
eas
ure
83
4
76
4
1,
25
7
33
1
2,
09
1
1,
09
5
31
De
c.
20
21
30
Ju
ne
20
22
31
De
c.
20
21
30
Ju
ne
20
22
31
De
c.
20
21
30
Ju
ne
20
22
No
ent
n-c
urr
Cu
nt
rre
tal
To
€m

13 Assets held for sale and liabilities associated with assets held for sale

After having previously discontinued the delivery of mail and parcels to Russia, the Group decided to sell its seven Russian companies as a consequence of the ongoing war.

Two of these companies are assigned to the Express segment and five to the Forwarding, Freight segment. Prior to reclassification as assets held for sale and liabilities associated with assets held for sale, an impairment loss of €31 million was recognised on the assets.

As
set
s
Lia
bili
tie
s
31
De
c.
20
21
30
Ju
ne
20
22
31
De
c.
20
21
30
Ju
ne
20
22
0 10
9
0 83
18 0 4 0
2 0 1 0
1 1 0 0
21 11
0
5 83

Russian companies

30
20
22
Ju
ne
0
60
49
10
9
16
67
83

The planned sales of StreetScooter and Greenplan, as reported as at 31 December 2021, were closed in the first quarter of 2022, note 2.

14 Issued capital and purchase of treasury shares

KfW Bankengruppe (KfW) held a 20.5% interest in the share capital of Deutsche Post AG as at 30 June 2022. Free float accounts for 77.8% of the shares and the remaining 1.7% of shares are owned by Deutsche Post AG.

The issued capital is composed of 1,239,059,409 nopar value registered shares (ordinary shares) with a notional interest in the share capital of €1 per share, and is fully paid up.

Changes in issued capital and treasury shares

€m

tal
be
r/3
To
at
31
De
0 J
cem
un
e
1,
22
4
1,
21
8
Ba
lan
31
De
be
r/3
0 J
at
ce
cem
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e
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5
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f tr
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ue/
sal
sh
e o
eas
ury
are
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rch
of
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tre
ase
asu
ry s
res
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0
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sh
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asu
ry
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s
lan
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at
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an
ua
ry
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5
lan
be
r/3
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Ba
at
31
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ce
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23
9
1,
23
9
1,
Ad
dit
du
l
ion
tin
ita
e t
nt
o c
on
ge
cap
inc
rea
se
0 0
d c
ita
l
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ue
ap
lan
Ba
J
1
at
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an
ua
ry
1,
23
9
1,
23
9
20
21
20
22

The first tranche of the share buy-back programme with a total volume of up to €500 million was launched on 8 April 2022. Repurchases are being made by an independent financial services provider until 7 November 2022 on the basis of an irrevocable agreement. As at 29 June 2022, the total volume of the first tranche was increased by €300 million to €800 million, with the end of term remaining unchanged at 7 November 2022. By 30 June 2022, 7,091,809 shares had been repurchased under the share buy-back programme for a total amount of €259 million at an average price of €36.52 per share. The repurchased shares may be used for the purposes set out in note 3.

In the first half of 2022, treasury shares were also acquired and issued to executives to settle the 2021 tranche and claims to matching shares under the 2017 tranche. The shares were acquired at an average price per share of €44.46 for a total of €73 million.

Deutsche Post AG held 21,132,002 treasury shares as at 30 June 2022.

15 Reserves

Capital reserves

lan
be
r/3
0 J
Ba
at
31
De
ce
cem
un
e
3,
53
3
52
2
3,
Dif
fer
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ces
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n p
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pr
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loy
Sh
Pl
Em
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5
lan
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1
ce
an
ua
ry
3,5
19
3,5
33
20
21
20
22
€m

Retained earnings

Retained earnings mainly include changes due to capital increases or reductions:

Capital increase/decrease

€m
31
De
c.
30
Ju
ne
20
21
20
22
Ob
liga
tio
has
ha
in
20
22
n t
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41
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20
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are
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ce
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Dif
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p
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M
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g
me
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er
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tal
–9
81
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46

The first tranche of the share buy-back programme, with a total volume of up to €800 million (adjusted), began on 8 April 2022 and is being implemented by an independent financial services provider until 7 November 2022 on the basis of an irrevocable agreement. At the time the agreement was concluded, the resulting obligation was charged in full to retained earnings and recognised as a financial liability. It was reduced by the buy-back transactions carried out by 30 June 2022. The obligation to repurchase shares after 30 June 2022 is included in the amount of €541 million.

Segment reporting

16 Segment reporting

Segments by division

€m

Exp
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Glo
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Su ly
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21
20
22
20
21
20
22
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20
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20
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20
21
20
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20
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20
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Ext
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Int
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of w
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of w
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Se
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De
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pre
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73
6
81
2
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4
84 97 16
4
16
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0
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88
3
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3
Im
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los
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pa
ses
0 24 0 7 0 4 0 0 0 0 0 0 0 0 0 35
To
tal
de
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pre
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los
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pa
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73
6
83
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25
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loy
Em
p
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10
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74
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23
6
,
0 1 52
0,
35
6
53
8,
72
3

1 Including rounding. 2 As at 31 December 2021 and 30 June 2022. 3 Average FTEs.

Segments by division

€m

Exp
res
s
Glo
ba
l Fo
ard
ing
rw
,
Fre
ig
ht
Su ly
Ch
ain
pp
eC om
me
rce
So
lut
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s
Po l
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Pa
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Gro
up
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s
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up
Q2 20
21
20
22
20
21
20
22
20
21
20
22
20
21
20
22
20
21
20
22
20
21
20
22
20
21
20
22
20
21
20
22
al r
Ext
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nu
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82
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12
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95
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33
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(r
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27
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11
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28
5

Including rounding.

Informationabout geographical regions

€m

Eu
rop
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Ge
rm
any
(ex
clu
din
)
Ge
g
rm
any
Am
eri
cas
fic
As
ia P
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Mid
dle
Afr
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st/
ica
Gro
up
H1 20
21
20
22
20
21
20
22
20
21
20
22
20
21
20
22
20
21
20
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20
21
20
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10
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38
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s1
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04
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6
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96
6
89
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6
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75
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2,
88
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Q2
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5,1
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6
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3,7
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4,
5
78
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19
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3
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9
,
To
tal
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pex
67
1
55
1
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1
41
8
44
6
31
1
14
4
16
0
35 41 1,
63
7
1,
48
1

1 As at 31 December 2021 and 30 June 2022.

12 12

Reconciliation

€m

17 Disclosures on financial instruments

, ,
3,
00
1
–1
22
6
3, 22
67 4,
5 7
19 –2
–3 69
3, 4,
99 49
4 6
–2 –1
–1 –1
39 79
4,1 4,6
35 76
20 20
21 22
H1 H1
–1
02
9
2,
64
6

Financial assets andliabilities

Financial liabilities measured at fair value

€m
Cla
ss
Ca
ing
rry
nt
am
ou
Fai
lue
r va
1
Lev
el 1
2
Lev
el 2
3
Lev
el 3
30
Ju
20
22
ne
t fi
nci
No
al a
ts
n-c
urr
en
na
sse
1,
14
5
1,
14
5
32
4
33
1
32
t4
As
d a
rtis
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set
t a
s m
eas
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mo
cos
76
4
76
4
30
6
Fin
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1 Quoted market prices. 2 Inputs other than quoted prices that are directly or indirectly observable for instruments. 3 Inputs not based upon observable market data. 4 Carrying amount also includes lease receivables of €458 million (31 December 2021: €410 million) and lease liabilities of €10,554 million (31 December 2021: €9,841 million) under IFRS 16. The fair values of the lease liabilities are not listed because they do not fall within the scope of IFRS 9. 5 No disclosure of market value is required because the carrying amount of the financial instrument is a reasonable approximation of fair value (IFRS 7.29a).

12

The table above presents selected financial assets and liabilities measured at fair value or amortised cost. Financial assets and liabilities measured at amortised cost are reported if the carrying amount of an asset or liability differs from its fair value. As permitted under IFRS 7.29a, the disclosures do not include trade receivables, cash and cash equivalents or other current assets and liabilities because their carrying amounts are a reasonable approximation of their fair values. Other non-current assets and liabilities have also been omitted from the presentation as their fair values do not differ from their carrying amounts.

Fair values are assigned to Levels 1 to 3 of the fair value hierarchy.

Level 1 comprises equity and debt instruments measured at fair value and debt instruments measured at amortised cost whose fair values can be determined based on quoted market prices.

The fair values of the financial assets measured at amortised cost and commodity, interest rate and currency derivatives assigned to Level 2 are determined using the multiplied method or upon the basis of discounted expected future cash flows, taking into account forward rates for currencies, interest rates and commodities (market approach). For this purpose, price quotations observable in the market (exchange rates, interest rates and commodity prices) are imported into the treasury management system from standard market information platforms. The price quotations reflect actual transactions involving similar instruments on an active market.

Level 3 comprises mainly the fair values of equity investments and derivatives associated with M&A transactions. They are measured using recognised valuation models and plausible assumptions. The fair values of derivatives as well as of assets and liabilities depend, to a large extent, upon financial ratios. Increasing financial ratios lead to higher fair values, whilst decreasing financial ratios result in lower fair values.

18 Contingent liabilities and other financial obligations

Contingent liabilities declined by €47 million in comparison with 31 December 2021, to €776 million. This decline is attributable mainly to the obligation for potential settlement payments in the United States which was previously reported under contingent liabilities, 2021 Annual Report in note 44 to the consolidated financial statements. The assessment of this obligation has changed. Accordingly, it is no longer included as a contingent liability. There were no other significant changes in this regard as compared to 31 December 2021.

19 Related-party disclosures

Effective as of 1 July 2022, Nikola Hagleitner assumed responsibility on the Board of Management for Post & Parcel Germany from Dr Tobias Meyer, who is now responsible for Global Business Services. Ken Allen, who had held responsibility for eCommerce Solutions, resigned from the Board of Management with effect from the end of 31 July 2022. Pablo Ciano has been the new Board of Management member responsible for eCommerce Solutions since 1 August 2022. John Pearson will be responsible for Customer Solutions & Innovation (CSI) from August. There were no other significant changes in related-party disclosures as compared to 31 December 2021.

20 Events after the reporting date/other disclosures There were no reportable events after the balance sheet date.

RESPONSIBILITYSTATEMENT

REVIEWREPORT

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the condensed consolidated interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the material opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.

Bonn, 4 August 2022

Deutsche Post AG The Board of Management

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We have reviewed the condensed consolidated interim financial statements – comprising income statement and statement of comprehensive income, balance sheet, cash flow statement, statement of changes in equity and selected explanatory notes – and the interim group management report of Deutsche Post AG, Bonn, for the period from 1 January to 30 June 2022 which are part of the half-year financial report pursuant to § (Article) 115 WpHG ("Wertpapierhandelsgesetz": German Securities Trading Act). The preparation of the condensed consolidated interim financial statements in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and of the interim group management report in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports is the responsibility of the parent Company's Board of Managing Directors. Our responsibility is to issue a review report on the condensed consolidated interim financial statements and on the interim group management report based on our review.

We conducted our review of the condensed consolidated interim financial statements and the interim group management report in accordance with German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany) (IDW) and additionally observed the International Standard on Review Engagements "Review of Interim Financial Information Performed by the Independent Auditor of the

Entity" (ISRE 2410). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with moderate assurance, that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports. A review is limited primarily to inquiries of company personnel and analytical procedures and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot express an audit opinion.

Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU nor that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports.

Düsseldorf, 4 August 2022

PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

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FINANCIAL CALENDARCONTACTS

Revised dates and information regarding live webcasts can be found on our Reporting hub.

Forward-looking statements

This interim report contains forward-looking statements which are not historical facts. They also include statements concerning assumptions and expectations which are based upon current plans, estimates and projections, and the information available to Deutsche Post AG at the time this report was completed. They should not be considered to be assurances of 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 "Expected developments, opportunities and risks" 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 report. Deutsche Post AG undertakes no obligation to update the forward-looking statements contained in this report except as required by applicable law. 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.

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