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Deutsche Post AG
Quarterly Report • May 16, 2022
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Quarterly Report
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QUARTERLY STATEMENT AS AT 31 MARCH 2022
2 BUSINESS PERFORMANCE
- 2 Organisational changes
- 2 Significant events
- 2 Revenue, earnings and financial position
- 5 Divisions
- 8 Changes in expected developments
9 SELECTED FINANCIAL INFORMATION
- 9 Income statement
- 10 Balance sheet
- 11 Cash flow statement
- 12 Segments by division
- 13 Earnings per share
- 13 Issued capital and treasury shares
Selected key figures
| Q 1 2021 | Q 1 2022 | + / – % | ||
|---|---|---|---|---|
| Revenue | €m | 18,860 | 22,593 | 19.8 |
| Profit from operating activities (EBIT) | €m | 1,911 | 2,159 | 13.0 |
| Return on sales 1 | % | 10.1 | 9.6 | – |
| EBIT after asset charge (EAC) | €m | 1,236 | 1,388 | 12.3 |
| Consolidated net profit for the period 2 | €m | 1,190 | 1,351 | 13.5 |
| Free cash flow | €m | 1,183 | –197 | <–100 |
| Net debt 3 | €m | 12,772 | 13,734 | 7.5 |
| Earnings per share 4 | € | 0.96 | 1.10 | 14.6 |
| Number of employees 5 | 565,053 | 587,737 | 4.0 |
1 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 quarter, including trainees.
BUSINESS PERFORMANCE
Organisational changes
In March 2022, Pablo Ciano was appointed to the Board of Management with effect from August 2022. His term runs until July 2025.Hewill be is responsible forthe eCommerce Solutions division.
From August 2022 onward, Customer Solutions & Innovation (CSI) will be the responsibility of John Pearson.
Significant events
In August 2021, Deutsche Post DHL signed an agreement to acquire the J. F. Hillebrand Group. 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 oftheHillebrand Group were transferred and the acquisition was completed. Initial consolidation resulted in preliminary goodwill of around €1.6 billion.
Revenue, earnings and financial position
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 oftheHillebrandGroup were incorporated into the Global Forwarding, Freight division. There were no other material changes in our portfolio in the reporting period.
Consolidated revenue up sharply
Consolidated revenue rose sharply by €3,733 million to €22,593 million in the first quarter of 2022, due to factors including positive currency effects of €547 million.
At €563 million, other operating income exceeded the prior-year period (€414 million). Income from the disposal of assets in particular rose as a result of the sale of Street-Scooter GmbH, amongst other factors.
Materials expense markedly higher
Materials expense rose markedly by €2,901 million to €12,484 million, mainly due to a €2,307 million increase in transport costs. Staff costs increased by €482 million over the previous year to €6,320 million. This was attributable to high positive currency effects of €141 million and the growth in the number of employees at the DHL divisions. At €1,009 million, depreciation, amortisation and impairment losses were up €79 million year-on-year for reasons including impairment losses of €30 million on our Russian assets necessitated by the war in Ukraine. Of this figure, €24 million was attributable to the Express and €6 million to the Global Forwarding, Freight division. Other operating expenses were €1,210 million, also higher than in the prior-year quarter (€1,049 million). The increase resulted chiefly from higher negative currency effects and higher travel, entertainment and training expenses.
Consolidated EBIT up 13 %
In the first quarter of 2022, consolidated EBIT was €2,159 million, 13.0 % over the previous year's level of €1,911 million. At €–123 million, net finance costs were also more favourable than in the prior-year period (€–154 million). Profit before income taxes rose by €279 million to €2,036 million. As a result, income taxes were up €98 million to €590 million; the tax rate rose slightly from 28.0 % to 29.0 %.
Higher consolidated net profit for the period
Consolidated net profit was up on the prior-year figure (€1,265 million) to €1,446 million in the first quarter of 2022. Of this amount, €1,351 million was attributable to Deutsche Post AG shareholders and €95 million to non-controlling interest shareholders. Basic earnings per share improved from €0.96 to €1.10 and diluted earnings per share from €0.94 to €1.08.
Increased profitability boosts EBIT after asset charge (EAC)
In the first quarter of 2022, EAC climbed from €1,236 million to €1,388 million, mainly as a result ofincreased profitability. The imputed asset charge rose primarily due to investments in property, plant and equipment in all divisions – particularly Express and Post & Parcel Germany – and an increase in working capital.
EBIT after asset charge (EAC)
| € m | |||
|---|---|---|---|
| Q 1 2021 | Q 1 2022 | + / – % | |
| EBIT | 1,911 | 2,159 | 13.0 |
| Asset charge | – 675 | –771 | –14.2 |
| EAC | 1,236 | 1,388 | 12.3 |
Liquidity remains very solid
The FFO to debt performance metric did not change in the first quarter of 2022 compared with 31 December 2021. The increase in funds from operations was largely the result of higher operating cash flow before changes in working capital. Reported financial liabilities increased, mainly as a result of the assumption of financial liabilities from the Hillebrand acquisition and higher lease liabilities. In the debt item, the adjustment for pensions decreased, because pension obligations declined at a faster rate than plan assets on account of changes in discount rates. Less cash was available, mainly due to the decrease in free cash flow on account of the purchase price payment for the Hillebrand Group. On 31 March 2022, the Group had cash and cash equivalents of €4.3 billion. In view of this solid liquidity,the syndicated creditfacility with a total volume of €2 billion was not drawn down during the reporting period.
FFO to debt
| € m | ||
|---|---|---|
| 1 April | ||
| 1 Jan. to | 2021 to | |
| 31 Dec. | 31 March | |
| 2021 | 2022 | |
| Operating cash flow before changes | ||
| in working capital | 10,423 | 10,599 |
| Interest received | 91 | 102 |
| Interest paid | 550 | 551 |
| Adjustment for pensions | 102 | 118 |
| Funds from operations, FFO | 10,066 | 10,268 |
| Reported financial liabilities 1 | 19,897 | 20,772 |
| Financial liabilities at fair value | ||
| through profit or loss 1 | 13 | 41 |
| Adjustment for pensions 1 | 3,777 | 2,996 |
| Surplus cash and near-cash | ||
| investments 1, 2 | 4,089 | 3,737 |
| Debt | 19,572 | 19,990 |
| FFO to debt (%) | 51.4 | 51.4 |
1 As at 31 December 2021 and 31 March 2022, respectively.
2 Reported cash and cash equivalents and investment funds callable at sight, less cash needed for operations.
Capital expenditure for assets acquired still high
Investments in property, plant and equipment and intangible assets acquired (excluding goodwill) amounted to €564 million in the first quarter of 2022 (previous year: €583 million). As planned, we made additional investments in renewing the Express division's intercontinental aircraft fleet. Advance payments were made for a new order of six additional Boeing B777 freighters.
Slight decrease in operating cash flow
Net cash from operating activities decreased slightly from €2,490 million in the previous yearto €2,426 million in the first quarter of 2022. Higher EBIT was offset by increases in income taxes paid and cash outflow from changes in working capital.
Net cash used in investing activities rose by €157 million to €963 million, primarily on account of the net cash outflow of €1,379 million forthe takeover oftheHillebrand Group. In contrast, particularly the sale of money market funds led to a cash inflow in current financial assets totalling €1,019 million; in the previous year, there had been a cash outflow of €162 million.
Free cash flow was €–197 million in the reporting period, which was mainly attributable to the purchase price payment for the Hillebrand Group. Excluding this net cash outflow of €1,379 million, free cash flow was again at the high level of the prior-year first quarter (€1,183 million).
Calculation of free cash flow
| € m | ||
|---|---|---|
| Q 1 2021 | Q 1 2022 | |
| Net cash from operating activities | 2,490 | 2,426 |
| Sale of property, plant and equipment and intangible assets |
37 | 26 |
| Acquisition of property, plant and equipment and intangible assets |
–704 | –739 |
| Cash outflow from change in property, plant and equipment and intangible assets |
– 667 | –713 |
| Disposals of subsidiaries and other business units |
0 | 43 |
| Disposals of investments accounted for using the equity method and other investments |
0 | 0 |
| Acquisition of subsidiaries and other business units |
0 | –1,377 |
| Acquisition of investments accounted for using the equity method and other investments |
–2 | 0 |
| Cash outflow from acquisitions / divestitures |
–2 | –1,334 |
| Proceeds from lease receivables | 7 | 42 |
| Interest from lease receivables | 0 | 5 |
| Repayment of lease liabilities | – 542 | – 525 |
| Interest on lease liabilities | – 94 | –102 |
| Cash outflow from leases | – 629 | – 580 |
| Interest received (without leasing) | 15 | 21 |
| Interest paid (without leasing) | –24 | –17 |
| Net interest paid / received | – 9 | 4 |
| Free cash flow | 1,183 | –197 |
Net cash used in financing activities dropped by €389 million to €717 million. In the first quarter of the previous year, we repaid a bond in the amount of €750 million.
Cash and cash equivalents rose from €3,531 million as at 31 December 2021 to €4,310 million.
Higher consolidated total assets
The Group's total assets amounted to €67,024 million as at 31 March 2022, up on the level at 31 December 2021 (€63,592 million).
Non-current assets increased by €2,206 million to €43,064 million. The initial consolidation of the Hillebrand Group, in particular, caused intangible asset to rise, by €1,704 million to €13,780 million. Property, plant and equipmentwas up from €24,903 million to €25,509 million, with investments, additions from business combinations and positive currency effects exceeding disposals and depreciation, amortisation and impairmentlosses. In contrast, current financial assets decreased sharply by €988 million to €2,100 million, mainly due to our sale of money market funds. Trade receivables rose by €928 million to €12,611 million.Other current assets also rose sharply from €3,588 million to €4,043 million. This figure includes the deferred expense of €240 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 were up by €779 million to €4,310 million.
At €21,295 million, equity attributable to Deutsche Post AG shareholders was well over the figure at 31 De-
cember 2021 (€19,037 million). Consolidated net profit, currency effects and actuarial gains from pension obligations increased this figure. Higher interest rates were the primary factor resulting in a steep decrease in provisions for pensions and similar obligations by €648 million to €3,537 million. Financial liabilities were up by €875 million to €20,772 million, mainly on account of an increase in lease liabilities. Other current liabilities were also up, from €6,138 million to €6,975 million, due primarily to an increase in liabilities to employees, such as holiday entitlements.
Net debt increases to €13,734 million
Our net debt rose from €12,772 million as at 31 December 2021 to €13,734 million as at 31 March 2022.
Net debt
| € m | ||
|---|---|---|
| 31 Dec. 2021 |
31 March 2022 |
|
| Non-current financial liabilities | 16,589 | 17,294 |
| Current financial liabilities | 2,802 | 2,919 |
| Financial liabilities 1 | 19,391 | 20,213 |
| Cash and cash equivalents | 3,531 | 4,310 |
| Current financial assets | 3,088 | 2,100 |
| Positive fair value of non-current financial derivatives 2 |
0 | 69 |
| Financial assets | 6,619 | 6,479 |
| Net debt | 12,772 | 13,734 |
1 Less operating financial liabilities.
2 Recognised in non-current financial assets in the balance sheet.
Divisions
EXPRESS
Key figures, Express
| Q 1 2021 | Q 1 2022 | + / – % |
|---|---|---|
| 5,499 | 6,373 | 15.9 |
| 2,383 | 2,652 | 11.3 |
| 1,135 | 1,398 | 23.2 |
| 1,987 | 2,305 | 16.0 |
| 333 | 362 | 8.7 |
| –339 | –344 | –1.5 |
| 961 | 971 | 1.0 |
| 17.5 | 15.2 | – |
| 1,441 | 1,609 | 11.7 |
1 EBIT / revenue.
Express: revenue by product
| € m per day 1 | |||
|---|---|---|---|
| Q 1 2021 | Q 1 2022 | + / – % | |
| Time Definite International (TDI) | 67.3 | 75.9 | 12.8 |
| Time Definite Domestic (TDD) | 6.1 | 6.0 | –1.6 |
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
| Items per day (thousands) | |||
|---|---|---|---|
| Q 1 2021 | Q 1 2022 | + / – % | |
| Time Definite International (TDI) | 1,206 | 1,123 | – 6.9 |
| Time Definite Domestic (TDD) | 694 | 578 | –16.7 |
International business continues to post strong revenue growth
Revenue in the division increased by 15.9 % to €6,373 million in the first quarter of 2022. This figure includes positive currency effects of €188 million; excluding these, the revenue increasewas 12.5 %. 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 rose by 7.4 %. Per-day TDI revenues grew, whilst shipment volumes declined in the reporting period. In the TDD productline, both per-day revenues and shipment volumes were down.
Revenue in the Europe region increased by 11.3 % to €2,652 million in the first quarter of 2022. That figure includes negative currency effects of €26 million; growth excluding these was 12.4 %. Per-day TDIrevenues increased by 11.8 %.Per-day TDI shipment volumes decreased by 6.9 %.
Revenue in the Americas region increased by 23.2 % in the reporting period to €1,398 million. The revenue figure includes positive currency effects of €69 million. Revenue growth excluding these was 17.1 %. Per-day TDI volumes were down 2.4 % from the prior-year quarter. Per-day revenues grew by 22.0 %.
In the Asia Pacific region, revenue improved by 16.0 % to €2,305 million. This figure includes positive currency effects of €99 million; excluding these, revenue grew by 11.0 %. In the TDI product line, per-day revenues rose by 11.5 % and per-day volumes were down by 7.7 %.
Revenue in the MEA (Middle East and Africa)region improved by 8.7 % to €362 million. Excluding positive currency effects of €17 million, revenue rose by 3.6 %. Per-day TDI revenues increased by 2.3 % and per-day volumes decreased by 16.3 %.
EBIT up slightly on prior year
EBIT in the division increased by 1.0 % in the first quarter of 2022 to reach €971 million. Return on saleswas down,from 17.5 % in the previous year to 15.2 % in the reporting period.
GLOBAL FORWARDING, FREIGHT
Key figures, Global Forwarding, Freight
| € m | |||
|---|---|---|---|
| Q 1 2021 | Q 1 2022 | + / – % | |
| Revenue | 4,752 | 7,359 | 54.9 |
| of which Global Forwarding | 3,590 | 6,113 | 70.3 |
| Freight | 1,193 | 1,277 | 7.0 |
| Consolidation / Other | –31 | –31 | 0.0 |
| Profit from operating activities (EBIT) |
216 | 601 | >100 |
| Return on sales (%) 1 | 4.5 | 8.2 | – |
| Operating cash flow | 112 | 418 | >100 |
1 EBIT / revenue.
Revenue up sharply
Revenue in the division rose sharply by 54.9 % to €7,359 million. Excluding positive currency effects of €172 million,this figure was up by 51.2 % year-on-year. In theGlobal Forwarding business unit, revenue was up 70.3 % to €6,113 million. Excluding positive currency effects of €185 million, the increase was 65.1 %. The business unit's gross profit was up from the previous year, by 66.1 % to €1,161 million.
Gross profits in air and ocean freight improve
We registered growth of 3.0 % in air freight volumes in the first quarter of 2022, due mainly to trade lanes between the United States and Europe. First-quarter airfreightrevenues rose by 55.2 %. Gross profit improved by 70.0 %.
Ocean freight volumes were up slightly by 0.3 % yearon-year. Revenues from ocean freight more than doubled over the prior-year period and gross profit grew by 90.2 %. The market situation was tight with the availability of free freight capacity still sharply curtailed, causing high freight rates.
Global Forwarding: revenue
| Total | 3,590 | 6,113 | 70.3 |
|---|---|---|---|
| Other | 495 | 658 | 32.9 |
| Ocean freight | 1,255 | 2,599 | >100 |
| Air freight | 1,840 | 2,856 | 55.2 |
| Q 1 2021 | Q 1 2022 | + / – % | |
| € m |
Global Forwarding: volumes
| Thousands | ||||
|---|---|---|---|---|
| Q 1 2021 | Q 1 2022 | + / – % | ||
| Air freight exports | tonnes | 494 | 509 | 3.0 |
| Ocean freight | TEU 1 | 764 | 766 | 0.3 |
1 Twenty-foot equivalent units.
Revenue increase in European overland transport business
Revenue in the Freight business unit increased by 7.0 % to €1,277 million in the first quarter of 2022. The volume was down by 2.9 % year-on-year. The business unit's gross profit rose by 4.5 % to €323 million.
EBIT up substantially year-on-year
EBIT in the division increased from €216 million to €601 million in the first quarter of 2022. With the EBIT margin at 8.2 %, EBIT amounts to 40.5 % of gross profit.
SUPPLY CHAIN
Key figures, Supply Chain
| Q 1 2021 | Q 1 2022 | + / – % |
|---|---|---|
| 3,241 | 3,815 | 17.7 |
| 1,533 | 1,755 | 14.5 |
| 1,226 | 1,524 | 24.3 |
| 489 | 555 | 13.5 |
| –7 | –19 <–100 | |
| 167 | 205 | 22.8 |
| 5.2 | 5.4 | – |
| 241 | 107 | – 55.6 |
1 EBIT / revenue.
Good revenue performance in early 2022
Revenue in the division increased by 17.7 % to €3,815 million in the first quarter of 2022. Excluding positive currency effects of €142 million,the increase was 13.3 %. This strong revenue performance was evident across all regions and sectors, with Retail, Life Sciences & Healthcare and Consumer achieving the highest growth. New business, contract renewals and growing e-commerce business are driving revenue growth.
Supply Chain: revenue by sector and region, Q 1 2022
Total revenue: €3,815 m
| of which Retail | 28 % |
|---|---|
| Consumer | 22 % |
| Auto-mobility | 14 % |
| Technology | 12 % |
| Life Sciences & Healthcare | 12 % |
| Engineering & Manufacturing | 5 % |
| Others | 7 % |
| of which Europe / Middle East / Africa / Consolidation | 46 % |
| Americas | 40 % |
| Asia Pacific | 14 % |
New business worth around €260 million secured
Inthefirstquarter of2022,thedivision concludedadditional contracts worth around €260 million in annualised revenue, which corresponds to a contract volume of €983 million. The Retail and Consumer sectors accounted forthe majority of the new business, which is in a large part attributable to e-commerce-based solutions. The annualised contract renewal rate remained at a consistently high level.
Revenue performance boosts earnings growth
EBIT in the division increased to €205 million in the first quarter of 2022 (previous year: €167 million). The positive trend seen in prior quarters therefore continues, following on from strong revenue growth. This development was boosted by factors including new business with higher margin solutions and productivity improvements thanks to digitalisation and standardisation. The EBIT margin was 5.4 %.
ECOMMERCE SOLUTIONS
Key figures, eCommerce Solutions
| Q 1 2021 | Q 1 2022 | + / – % |
|---|---|---|
| 1,454 | 1,445 | – 0.6 |
| 485 | 501 | 3.3 |
| 794 | 779 | –1.9 |
| 177 | 166 | – 6.2 |
| –2 | –1 | 50.0 |
| 117 | 102 | –12.8 |
| 8.0 | 7.1 | – |
| 230 | 170 | –26.1 |
1 EBIT / revenue.
First-quarter revenue nearly at prior-year level
The division generated revenue of €1,445 million in the first quarter of 2022, down 0.6 % from the high, pandemic-driven prior-year figure. In the reporting period,revenue was reduced by €39 million due to portfolio adjustments in Asia. Excluding positive currency effects of €49 million, revenue was down by a total of 4.0 % from the prior-year quarter.
EBIT below prior-year level
EBIT in the division was €102 million in the first quarter of 2022, below the prior-year figure of €117 million. This was mainly due to lower volumes and revenues in the B2C business. The EBIT margin was 7.1 %.
POST & PARCEL GERMANY
Key figures, Post & Parcel Germany
| € m | |||
|---|---|---|---|
| Q 1 2021 | Q 1 2022 | + / – % | |
| Revenue | 4,555 | 4,245 | – 6.8 |
| of which Post Germany | 2,034 | 2,088 | 2.7 |
| Parcel Germany | 1,820 | 1,544 | –15.2 |
| International | 675 | 593 | –12.1 |
| Other / Consolidation | 26 | 20 | –23.1 |
| Profit from operating activities | |||
| (EBIT) | 556 | 355 | –36.2 |
| Return on sales (%) 1 | 12.2 | 8.4 | – |
| Operating cash flow | 611 | 479 | –21.6 |
1 EBIT / revenue.
Revenue down year-on-year
In the first quarter of 2022, revenue in the division was €4,245 million, 6.8 % below the prior-year figure, although there were 1.0 more working days than in the previous year. The primary reason forthis development was the decline in theGerman parcel business,which had seen extraordinarily high shipment volumes in the prior-year quarter due to the pandemic.
Varying business unit performance
Overall,revenue and volumes in Mail Communication were again down slightly as expected. However, this trend was mitigated somewhat by price increases for some regulated mail products effective as of 1 January 2022. Small item shipments continued to perform well.
Dialogue Marketing saw advertising expenditures and revenues increase sharply thanks to the almost complete lifting of pandemic-related restrictions.
In the German parcel business, volumes and revenues were down by 18.6 % and 15.2 %, respectively, versus the pandemic-driven very strong prior-year quarter.
The cross-border transport of documents and goods has been volatile since the beginning of the year. Imports shipped as letter mail saw volumes of lightweight goods shipments from Asia fall sharply. Parcel imports also did not reach the pandemic-driven very high level of the prioryear quarter. This is also true of exports of documents and goods to Europe and the rest of the world.
Post & Parcel Germany: revenue
| € m | |||
|---|---|---|---|
| Q 1 2021 | Q 1 2022 | + / – % | |
| Post Germany | 2,034 | 2,088 | 2.7 |
| of which Mail Communication | 1,442 | 1,429 | – 0.9 |
| Dialogue Marketing | 413 | 476 | 15.3 |
| Other / Consolidation (Post Germany) |
179 | 183 | 2.2 |
| Parcel Germany | 1,820 | 1,544 | –15.2 |
Post & Parcel Germany: volumes
| Mail items (millions) | |||
|---|---|---|---|
| Q 1 2021 | Q 1 2022 | + / – % | |
| Post Germany | 3,481 | 3,722 | 6.9 |
| of which Mail Communication | 1,720 | 1,688 | –1.9 |
| Dialogue Marketing | 1,538 | 1,810 | 17.7 |
| Parcel Germany | 489 | 398 | –18.6 |
EBIT lagged behind the strong prior-year quarter
At €355 million in the first quarter of 2022, division EBIT lagged behind the strong prior-year quarter by 36.2 %. Last year, we generated higher revenues in the parcel business in particular due to the pandemic. Strict cost management and revenue growth inDialogue Marketing partly offsetthe effects on EBIT from the decline in revenue in the reporting period.
Changes in expected developments
ThewarinUkraine beginning in late February and the subsequent sanctions against Russia have made let to shortages of commodities and intermediate products and are impeding industrial production and dampening global growth in netterms as well. Atthe same time, a strong rise in inflation is putting the brakes on real consumer demand. An additional burden is China's extensive lockdowns at a time when most other countries have been lifting pandemic-related
restrictions simultaneously. In its forecast of 15 April 2022, S & P Global Market Intelligence (previously: IHS Markit) expects growth of 3.2 % in global economic activity in 2022 instead of the 4.2 % predicted in January.
We continue to anticipate an increase inB2Bvolumes in our networks in the 2022 financial year, although the pace will be less rapid than originally assumed in accordance with the forecasts for global economic activity. Afterrising sharply under pandemic conditions, B2C delivery volumes are forecast to return to structural growth after a stabilisation phase during 2022. In contrast, recently observed imbalances in international transport markets will remain in place longer than originally expected and will not begin to resolve until 2023.
In the 2022 financial year, we still anticipate consolidated EBIT of around €8.0 billion (+ / – max. 5 %). The DHL divisions continue to be 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 %). The earnings contributed by Group Functions is expected to amount to around €–0.45 billion.
In 2022, we still plan to increase capital expenditure (excluding leases) to around €4.2 billion. The projection for free cash flow (excluding acquisitions / divestitures) remains at around €3.6 billion (+ / – max. 5 %).
We now assess the aggregate impact of allforeign currency effects as representing a risk of low significance and still an opportunity of medium significance.
The war in Ukraine represents a risk of medium significance.
Declining growth rates in the parcel business also represent a risk of medium significance.
The Group's overall opportunity and risk situation did not otherwise change significantly during the first quarter of 2022 compared with the situation described in the
2021 Annual Report beginning on page 61. 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.
INCOME STATEMENT
1 January to 31 March
Selected Financial Information
| 2021 | 2022 |
|---|---|
| 18,860 | 22,593 |
| 414 | 563 |
| 37 | 28 |
| – 9,583 | –12,484 |
| – 5,838 | – 6,320 |
| – 930 | –1,009 |
| –1,049 | –1,210 |
| 0 | –2 |
| 1,911 | 2,159 |
| 30 | 92 |
| –178 | –198 |
| – 6 | –17 |
| –154 | –123 |
| 1,757 | 2,036 |
| – 492 | – 590 |
| 1,265 | 1,446 |
| 1,190 | 1,351 |
| 75 | 95 |
| 0.96 | 1.10 |
| 0.94 | 1.08 |
BALANCE SHEET
| € m | ||
|---|---|---|
| 31 Dec. 2021 | 31 March 2022 | |
| ASSETS | ||
| Intangible assets | 12,076 | 13,780 |
| Property, plant and equipment | 24,903 | 25,509 |
| Investment property | 48 | 23 |
| Investments accounted for using the equity method | 111 | 111 |
| Non-current financial assets | 1,190 | 1,268 |
| Other non-current assets | 587 | 729 |
| Deferred tax assets | 1,943 | 1,644 |
| Non-current assets | 40,858 | 43,064 |
| Inventories | 593 | 645 |
| Current financial assets | 3,088 | 2,100 |
| Trade receivables | 11,683 | 12,611 |
| Other current assets | 3,588 | 4,043 |
| Income tax assets | 230 | 236 |
| Cash and cash equivalents | 3,531 | 4,310 |
| Assets held for sale | 21 | 15 |
| Current assets | 22,734 | 23,960 |
| TOTAL ASSETS | 63,592 | 67,024 |
| 31 Dec. 2021 | 31 March 2022 | |
|---|---|---|
| EQUITY AND LIABILITIES | ||
| Issued capital | 1,224 | 1,222 |
| Capital reserves | 3,533 | 3,617 |
| Other reserves | –733 | – 482 |
| Retained earnings | 15,013 | 16,938 |
| Equity attributable to Deutsche Post AG shareholders | 19,037 | 21,295 |
| Non-controlling interests | 462 | 558 |
| Equity | 19,499 | 21,853 |
| Provisions for pensions and similar obligations | 4,185 | 3,537 |
| Deferred tax liabilities | 137 | 107 |
| Other non-current provisions | 1,946 | 1,967 |
| Non-current financial liabilities | 16,614 | 17,318 |
| Other non-current liabilities | 304 | 342 |
| Non-current provisions and liabilities | 23,186 | 23,271 |
| Current provisions | 1,208 | 1,236 |
| Current financial liabilities | 3,283 | 3,454 |
| Trade payables | 9,556 | 9,507 |
| Other current liabilities | 6,138 | 6,975 |
| Income tax liabilities | 717 | 721 |
| Liabilities associated with assets held for sale | 5 | 7 |
| Current provisions and liabilities | 20,907 | 21,900 |
| TOTAL EQUITY AND LIABILITIES | 63,592 | 67,024 |
CASH FLOW STATEMENT
1 January to 31 March
| € m | ||
|---|---|---|
| 2021 | 2022 | |
| Consolidated net profit for the period | 1,265 | 1,446 |
| Income taxes | 492 | 590 |
| Net finance costs | 154 | 123 |
| Profit from operating activities (EBIT) | 1,911 | 2,159 |
| Depreciation, amortisation and impairment losses | 930 | 1,009 |
| Net cost / net income from disposal of non-current assets | 2 | – 54 |
| Non-cash income and expense | 21 | 60 |
| Change in provisions | 9 | –3 |
| Change in other non-current assets and liabilities | –16 | –25 |
| Dividend received | 0 | 2 |
| Income taxes paid | –273 | –388 |
| Net cash from operating activities before changes in working capital | 2,584 | 2,760 |
| Changes in working capital Inventories |
–28 | –1 |
| Receivables and other current assets | –1,039 | – 847 |
| Liabilities and other items | 973 | 514 |
| Net cash from operating activities | 2,490 | 2,426 |
| Subsidiaries and other business units | 0 | 43 |
| Property, plant and equipment and intangible assets | 37 | 26 |
| Other non-current financial assets | 12 | 49 |
| Proceeds from disposal of non-current assets | 49 | 118 |
| Subsidiaries and other business units | 0 | –1,377 |
| Property, plant and equipment and intangible assets | –704 | –739 |
| Investments accounted for using the equity method and other investments | –2 | 0 |
| Other non-current financial assets | –2 | –10 |
| Cash paid to acquire non-current assets | –708 | –2,126 |
| Interest received | 15 | 26 |
| Current financial assets | –162 | 1,019 |
| Net cash used in investing activities | – 806 | – 963 |
| 2021 Proceeds from issuance of non-current financial liabilities 0 Repayments of non-current financial liabilities –1,301 Change in current financial liabilities 428 Other financing activities 4 Proceeds from transactions with non-controlling interests 0 Dividend paid to non-controlling interest holders –12 Purchase of treasury shares –107 Interest paid –118 Net cash used in financing activities –1,106 Net change in cash and cash equivalents 578 Effect of changes in exchange rates on cash and cash equivalents 53 Changes in cash and cash equivalents associated with assets held for sale 0 Cash and cash equivalents at beginning of reporting period 4,482 |
4,310 |
|---|---|
| 3,531 | |
| –2 | |
| 35 | |
| 746 | |
| –717 | |
| –119 | |
| – 67 | |
| –13 | |
| 8 | |
| 48 | |
| 16 | |
| – 590 | |
| 0 | |
| 2022 |
Segments by division
1 January to 31 March
| € m | Global Forwarding, | eCommerce | Post & Parcel | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Express | Freight | Supply Chain | Solutions | Germany | Group Functions | Consolidation 1 | Group | |||||||||
| 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | |
| External revenue | 5,380 | 6,236 | 4,430 | 7,016 | 3,214 | 3,796 | 1,421 | 1,411 | 4,402 | 4,125 | 13 | 8 | 0 | 1 | 18,860 | 22,593 |
| Internal revenue | 119 | 137 | 322 | 343 | 27 | 19 | 33 | 34 | 153 | 120 | 422 | 433 | –1,076 | –1,086 | 0 | 0 |
| Total revenue | 5,499 | 6,373 | 4,752 | 7,359 | 3,241 | 3,815 | 1,454 | 1,445 | 4,555 | 4,245 | 435 | 441 | –1,076 | –1,085 | 18,860 | 22,593 |
| Profit from operating activities (EBIT) | 961 | 971 | 216 | 601 | 167 | 205 | 117 | 102 | 556 | 355 | –105 | –75 | –1 | 0 | 1,911 | 2,159 |
| of which net income / loss from investments accounted for using the equity method |
0 | 1 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | – 4 | 0 | 0 | 0 | –2 |
| Segment assets 2 | 18,806 | 18,941 | 11,536 | 14,381 | 8,386 | 8,954 | 2,212 | 2,193 | 6,902 | 7,060 | 5,645 | 5,721 | –72 | –77 | 53,415 | 57,173 |
| of which investments accounted for using the equity method |
6 | 7 | 20 | 21 | 15 | 16 | 0 | 0 | 0 | 0 | 71 | 67 | –1 | 0 | 111 | 111 |
| Segment liabilities 2 | 5,233 | 5,279 | 5,012 | 5,780 | 3,505 | 3,539 | 876 | 813 | 2,631 | 2,769 | 1,718 | 1,749 | – 53 | – 63 | 18,922 | 19,866 |
| Net segment assets / liabilities 2 | 13,573 | 13,662 | 6,524 | 8,601 | 4,881 | 5,415 | 1,336 | 1,380 | 4,271 | 4,291 | 3,927 | 3,972 | –19 | –14 | 34,493 | 37,307 |
| Capex (assets acquired) | 288 | 148 | 21 | 31 | 86 | 112 | 19 | 52 | 119 | 173 | 51 | 48 | –1 | 0 | 583 | 564 |
| Capex (right-of-use assets) | 209 | 457 | 54 | 66 | 158 | 182 | 21 | 47 | 6 | 7 | 81 | 81 | 1 | 0 | 530 | 840 |
| Total capex | 497 | 605 | 75 | 97 | 244 | 294 | 40 | 99 | 125 | 180 | 132 | 129 | 0 | 0 | 1,113 | 1,404 |
| Depreciation and amortisation | 363 | 399 | 60 | 63 | 206 | 199 | 42 | 47 | 81 | 84 | 179 | 183 | –1 | 0 | 930 | 975 |
| Impairment losses | 0 | 24 | 0 | 6 | 0 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 34 |
| Total depreciation, amortisation and impairment losses |
363 | 423 | 60 | 69 | 206 | 203 | 42 | 47 | 81 | 84 | 179 | 183 | –1 | 0 | 930 | 1,009 |
| Other non-cash income (–) and expenses (+) | 138 | 135 | 38 | 45 | 45 | 94 | –3 | 6 | 79 | 75 | 29 | 45 | 1 | 1 | 327 | 401 |
| Employees 3 | 105,430 | 113,508 | 41,639 | 44,587 | 165,741 | 175,946 | 31,374 | 32,739 | 163,776 | 160,380 | 12,341 | 13,158 | 0 | 0 | 520,301 | 540,318 |
1 Including rounding. 2 As at 31 December 2021 and 31 March 2022. 3 Average FTEs.
Reconciliation
| € m | ||
|---|---|---|
| Q 1 2021 | Q 1 2022 | |
| Total income of reported segments | 2,017 | 2,234 |
| Group Functions | –105 | –75 |
| Reconciliation to Group / Consolidation | –1 | 0 |
| Profit from operating activities (EBIT) | 1,911 | 2,159 |
| Net finance costs | –154 | –123 |
| Profit before income taxes | 1,757 | 2,036 |
| Income taxes | – 492 | – 590 |
| Consolidated net profit for the period | 1,265 | 1,446 |
Issued capital and treasury shares
Changes in issued capital and treasury shares
| € m | ||
|---|---|---|
| 2021 | 2022 | |
| Issued capital | ||
| Balance as at 1 January | 1,239 | 1,239 |
| Addition due to contingent capital increase | 0 | 0 |
| Balance as at 31 December / 31 March | 1,239 | 1,239 |
| Treasury shares | ||
| Balance as at 1 January | 0 | –15 |
| Purchase of treasury shares | –20 | –2 |
| Issue / sale of treasury shares | 5 | 0 |
| Balance as at 31 December / 31 March | –15 | –17 |
| Total as at 31 December / 31 March | 1,224 | 1,222 |
Earnings per share
Basic earnings per share
| Basic earnings per share | € | 0.96 | 1.10 |
|---|---|---|---|
| Weighted average number of shares outstanding | number | 1,238,262,243 | 1,223,382,955 |
| Consolidated net profit for the period attributable to Deutsche Post AG shareholders | € m | 1,190 | 1,351 |
| Q 1 2021 | Q 1 2022 | ||
Diluted earnings per share
| Diluted earnings per share | € | 0.94 | 1.08 |
|---|---|---|---|
| Weighted average number of shares for diluted earnings | number | 1,268,482,902 | 1,253,286,996 |
| Potentially dilutive shares | number | 30,220,659 | 29,904,041 |
| Weighted average number of shares outstanding | number | 1,238,262,243 | 1,223,382,955 |
| Adjusted consolidated net profit for the period attributable to Deutsche Post AG shareholders | € m | 1,192 | 1,353 |
| Less income taxes 1 | € m | 0 | 0 |
| Plus interest expense on the convertible bond | € m | 2 | 2 |
| Consolidated net profit for the period attributable to Deutsche Post AG shareholders | € m | 1,190 | 1,351 |
| Q 1 2021 | Q 1 2022 |
1 Rounded below €1 million.
FINANCIAL CALENDAR
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CONTACTS
| Deutsche Post AG |
|---|
| Headquarters |
| 53250 Bonn |
| Germany |
Investor Relations + 49 (0) 228 182-6 36 36 ir @ dpdhl.com
Press Office + 49 (0) 228 182-99 44 pressestelle @ dpdhl.com
PUBLICATION
Published on 3 May 2022.
The English version of the Quarterly Statement as at 31 March 2022 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. -
BASIS OF REPORTING
The document at hand is a quarterly statement pursuant to section 53 Börsenordnung 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 the 2021 financial year, with the exception of the new pronouncements required to be applied. However, those standards had no material impact on the financial statements.
This quarterly statement 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 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 undertakes no obligation to update the forward-looking statements contained in this statement 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.