Quarterly Report • Sep 20, 2021
Quarterly Report
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| H 1 2020 | H 1 2021 | + / – % | Q 2 2020 | Q 2 2021 | + / – % | ||
|---|---|---|---|---|---|---|---|
| Revenue 1 | € m | 31,401 | 38,333 | 22.1 | 15,937 | 19,473 | 22.2 |
| Profit from operating activities (EBIT) | € m | 1,504 | 3,994 | >100 | 912 | 2,083 | >100 |
| Return on sales 2 | % | 4.8 | 10.4 | – | 5.7 | 10.7 | – |
| EBIT after asset charge (EAC) | € m | 163 | 2,630 | >100 | 243 | 1,394 | >100 |
| Consolidated net profit for the period 3 | € m | 826 | 2,482 | >100 | 525 | 1,292 | >100 |
| Free cash flow | € m | 196 | 2,102 | >100 | 605 | 919 | 51.9 |
| Net debt 4 | € m | 12,928 | 13,343 | 3.2 | – | – | – |
| Earnings per share 5 | € | 0.67 | 2.01 | >100 | 0.43 | 1.05 | >100 |
| Number of employees 6 | 540,184 | 568,537 | 5.2 | – | – | – | |
1 Prior-year figures adjusted, note 4 to the consolidated financial statements. 2 EBIT / revenue. 3 After deduction of non-controlling interests. 4 Prior-year figure as at 31 December. 5 Basic earnings per share. 6 Headcount at the end of the reporting period, including trainees.
No material changes were made to the Group's organisational structure during the reporting period.
In March 2021, John Pearson's mandate as a member of the Board of Management and his contract were renewed until December 2026. In June 2021, the Board of Management terms of Dr Tobias Meyer and Melanie Kreis were extended to March 2027 and May 2027, respectively.
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.
In the second quarter of 2021, most advanced economies experienced an economic upswing enabled by the gradual easing of pandemic-related restrictions. The recovery began at differenttimes depending on the pandemic situation and vaccination progress in each country.
Services benefited mostfrom the lifting ofrestrictions. In contrast, manufacturing slowed in part due to supply chain bottlenecks, including for semiconductors and construction materials.
Countries in Asia, spearheaded by China, led the economic recovery, although supply chain problems adversely affected growth there.
In theUnited States, annualised growth in the first half of 2021 exceeded the 7 % mark, driven by rapid progress on vaccinations, strong fiscal stimulus and persistently loose monetary policy.
Economic activity picked up in the eurozone thanks to the gradual easing of pandemic-related restrictions. This provided impetus particularly for private consumption for reasons, including the savings previously accumulated by consumers and now directly available. In early July, the European Central Bank additionally announced that it would aim for a symmetrical inflation target of 2 % as well as incorporate climate issues into its monetary policy considerations.
The third wave ofthe pandemic only allowed Germany to relax restrictions starting in mid-May. However, the industrial sector had already benefited more than average in the initial months of the year from the ramp-up of globaltrading. As a result,the renewed recession in the first quarter was weaker than had been expected on account of the lockdown from December to April. In June, the ifo German Business Climate Index reached its highest level since November 2018.
Our business performance continued to be significantly impacted by the COVID-19 pandemic in the first half of 2021. After the initial easing of restrictions, worldwide B2B shipment volumes recovered appreciably, whereas volumes of B2C shipments exceeded the prior-year level, which resulted in high capacity utilisation of our networks. Our employees continue to be subject to difficult conditions in fulfilling these shipment volumes. In order to acknowledge their great dedication, the Board of Management resolved in early July to pay a second special pandemic-related bonus of €300 to each employee, which will be expensed in the third quarter and disbursed in the fourth quarter.
The Board of Management also decided to implement a €1 billion share buy-back programme with a maximum duration of one year in line with our financial strategy. Shares totalling around €200 million were reacquired in the reporting period. A contractual obligation to repurchase exists up to around €300 million.
There were no material changes in our portfolio in the reporting period.
| H 1 2020 | H 1 2021 | Q 2 2020 | Q 2 2021 | ||
|---|---|---|---|---|---|
| Revenue 1 | € m | 31,401 | 38,333 | 15,937 | 19,473 |
| Profit from operating activities (EBIT) | € m | 1,504 | 3,994 | 912 | 2,083 |
| Return on sales 2 | % | 4.8 | 10.4 | 5.7 | 10.7 |
| EBIT after asset charge (EAC) | € m | 163 | 2,630 | 243 | 1,394 |
| Consolidated net profit for the period 3 | € m | 826 | 2,482 | 525 | 1,292 |
| Earnings per share 4 | € | 0.67 | 2.01 | 0.43 | 1.05 |
1 Prior-year figures adjusted, note 4 to the consolidated financial statements. 2 EBIT / revenue. 3 Net of non-controlling interests. 4 Basic earnings per share.
Consolidated revenue rose sharply from €31,401 million to €38,333 million in the first half of 2021, although currency effects reduced it by €976 million. 72.3 % was generated abroad (previous year: 69.7 %). Revenue for the second quarter increased from €15,937 million to €19,473 million. It was also reduced by foreign currency losses of €389 million.
At €942 million, other operating income was slightly below the prior-year level (€971 million).
Materials expense rose markedly by €3,932 million to €19,799 million, mainly due to higher transport costs as a result of increased shipment volumes in all divisions and higher freight rates in the Global Forwarding, Freight division. Staff costs amounted to €11,678 million, up
€726 million from the prior year, largely on account of the higher headcount. At €1,883 million, depreciation, amortisation and impairment losses were down by €80 million from the previous year, which had seen one-off effects from the reorganisation of the StreetScooter activities and impairment losses in the Supply Chain division resulting from lockdown measures. Other operating expenses totalled €2,153 million, around the level of the previous year (€2,191 million). Net income / loss from investments accounted for using the equity method improved considerably from €–32 million in the previous year to €44 million in the reporting period. The prior-year figure included a write-off of our equity investment in the France-based Relais Colis SAS, whereas the figure for the reporting period chiefly reflects income related to the initial public offering of an investment accounted for using the equity method, note 10 to the consolidated financial statements.
Profit from operating activities (EBIT) improved by €2,490 million in the first half of 2021 to €3,994 million. At €–319 million, net finance costs were slightly less favourable than in the prior year (€–306 million). Profit before income taxes climbed substantially by €2,477 million to €3,675 million. Income taxes rose by €741 million to €1,029 million also on account of a higher tax rate.
Consolidated net profit was up considerably on the prior-year figure (€910million), climbing by €1,736 million to €2,646 million in the first half of 2021. Of this amount, €2,482 million is attributable to Deutsche Post AG shareholders and €164 million to non-controlling interest shareholders. Basic earnings per share improved from €0.67 to €2.01 and diluted earnings per share from €0.66 to €1.96.
In the first half of 2021, EAC increased substantially from €163 million to €2,630 million, mainly as a result of the company's increased profitability. The imputed asset charge increased only moderately over the prior-year period, in particular due to investments in property, plant and equipment in the Express and Post & Parcel Germany divisions.
| EAC | 163 | 2,630 | >100 |
|---|---|---|---|
| Asset charge | –1,341 | –1,364 | –1.7 |
| EBIT | 1,504 | 3,994 | >100 |
| H 1 2020 | H 1 2021 | + / – % | |
| € m |
| € m | ||||
|---|---|---|---|---|
| H 1 2020 | H 1 2021 | Q 2 2020 | Q 2 2021 | |
| Cash and cash equivalents as at 30 June | 4,569 | 3,887 | 4,569 | 3,887 |
| Change in cash and cash equivalents | 1,766 | – 630 | 2,012 | –1,208 |
| Net cash from operating activities | 2,396 | 4,728 | 1,646 | 2,238 |
| Net cash used in investing activities | –1,655 | –1,490 | –1,114 | – 684 |
| Net cash from / used in financing activities | 1,025 | –3,868 | 1,480 | –2,762 |
We continue to pursue the principles and aims of our financial management as presented in the 2020 Annual Report beginning on page 32 as part of our finance strategy.
The FFO to debt performance metric increased considerably in the first half of 2021 compared with 31 December 2020. The substantial increase in funds from operations was largely the result of higher operating cash flow before changes in working capital. The adjustment for pensions decreased significantly, mainly on account of the sharp reduction in pension obligations resulting from changes in discount rates. Cash and cash equivalents are at a good level and reflect the very good development in operating cash flow.
| € m | ||
|---|---|---|
| 1 July | ||
| 1 Jan. to | 2020 to | |
| 31 Dec. | 30 June | |
| 2020 | 2021 | |
| Operating cash flow before changes | ||
| in working capital | 8,103 | 10,000 |
| Interest received | 67 | 63 |
| Interest paid | 556 | 548 |
| Adjustment for pensions | 97 | 48 |
| Funds from operations, FFO | 7,711 | 9,563 |
| Reported financial liabilities 1 | 19,098 | 19,197 |
| Financial liabilities at fair value | ||
| through profit or loss 1 | 54 | 13 |
| Adjustment for pensions 1 | 5,826 | 4,019 |
| Surplus cash and near-cash | ||
| investments 1, 2 | 4,350 | 3,569 |
| Debt | 20,520 | 19,634 |
| FFO to debt (%) | 37.6 | 48.7 |
1 As at 31 December 2020 and 30 June 2021, respectively.
2 Reported cash and cash equivalents and investment funds callable at sight, less cash needed for operations.
Our credit quality as rated by Fitch Ratings and Moody's Investors Service has not changed from the ratings described and projected in the 2020 Annual Report on page 34. In view of our solid liquidity, the five-year syndicated credit facility with a total volume of €2 billion was not drawn upon during the reporting period.On 30 June 2021,the Group had cash and cash equivalents of €3.9 billion.
Investments in property, plant and equipment, and intangible assets (not including goodwill) acquired amounted to €1,377 million in the first half of 2021 (previous year: €935 million). As planned, we made additional investments in renewing the Express division's intercontinental aircraft fleet. Three Boeing 777 cargo aircraft were delivered in this context in the first half-year and advance payments were made for another eight Boeing 777 cargo aircraft. Some of these investments were attributable to rights of use,
note 12 to the consolidated financial statements. For a breakdown of capital expenditure (capex) into asset classes and by division and region see notes 12 and 16 to the consolidated financial statements.
Net cash from operating activities increased by €2,332 million compared with the prior-year period,to €4,728 million in the first half of 2021, mainly due to a sharp rise in EBIT. The change in provisions was from €87 million to €–78 million. The prior-year figure included provisions recognised in connection with the realignment ofthe StreetScooter fleet. Income taxes paid rose from €325 million to €544 million. In contrast, the cash outflow from changes in working capital was down by €435 million to €480 million.
At €1,490 million, net cash used in investing activities was lower than in the previous year (€1,655 million). The further expansion of our networks drove an increase in cash paid to acquire property, plant and equipment and intangible assets from €1,056 million to €1,429 million. In the previous year, cash paid for current financial assets was higher at €682 million, because we had invested more heavily in money market funds (reporting period: €145 million).
Free cash flow improved significantly from €196 million to €2,102 million, due primarily to a sharp rise in net cash from operating activities.
Financing activities resulted in a net outflow of cash totalling €3,868 million, whereas in the previous year, we saw a net inflow of €1,025 million after the issue of three bonds totalling €2.2 billion. In the reporting period, we repaid a bond in the amount of €750 million. In addition, the dividend for financial year 2019 was not paid out until the third quarter of 2020 following postponement of the Annual General Meeting to 27 August 2020. The higher dividend for financial year 2020 amounting to €1,673 million was again paid out as usual in the second quarter of 2021. Cash used to purchase treasury shares rose from €45 million to €313 million mainly on account of our share buy-back programme. Cash and cash equivalents fellfrom €4,482 million as at 31 December 2020 to €3,887 million.
| € m | ||||
|---|---|---|---|---|
| H 1 2020 | H 1 2021 | Q 2 2020 | Q 2 2021 | |
| Net cash from operating activities | 2,396 | 4,728 | 1,646 | 2,238 |
| Sale of property, plant and equipment and intangible assets | 42 | 56 | 16 | 19 |
| Acquisition of property, plant and equipment and intangible assets | –1,056 | –1,429 | – 459 | –725 |
| Cash outflow from change in property, plant and equipment and intangible assets |
–1,014 | –1,373 | – 443 | –706 |
| Disposals of subsidiaries and other business units | 4 | 3 | 4 | 3 |
| Acquisition of investments accounted for using the equity method and other investments |
–13 | –2 | – 8 | 0 |
| Cash outflow / inflow from acquisitions / divestitures | – 9 | 1 | – 4 | 3 |
| Proceeds from lease receivables | 12 | 14 | 6 | 7 |
| Repayment of lease liabilities | – 950 | –1,033 | – 468 | – 491 |
| Interest on lease liabilities | –202 | –186 | –100 | – 92 |
| Cash outflow from leases | –1,140 | –1,205 | – 562 | – 576 |
| Interest received | 37 | 33 | 19 | 18 |
| Interest paid | –74 | – 82 | – 51 | – 58 |
| Net interest paid | –37 | – 49 | –32 | – 40 |
| Free cash flow | 196 | 2,102 | 605 | 919 |
| 31 Dec. 2020 |
30 June 2021 |
||
|---|---|---|---|
| Equity ratio | % | 25.5 | 28.5 |
| Net debt | € m | 12,928 | 13,343 |
| Net interest cover 1 | 6.3 | 17.0 | |
| Net gearing | % | 47.9 | 44.8 |
1 In the first half-year.
The Group's total assets amounted to €57,691 million as at 30 June 2021, €2,384 million higher than at 31 December 2020 (€55,307 million).
Non-current assets rose from €37,046 million to €38,281 million. Intangible assets were up by €171 million to €11,829 million, mainly because of positive currency effects relating to goodwill. Property, plant and equipment increased by €847 million to €22,854 million as capital expenditure and positive currency effects exceeded depreciation, impairment losses and disposals. Other non-current assets rose markedly by €566 million to €726 million because actuarial gains increased pension assets. At €19,410 million, current assets were up by €1,149 million. Current financial assets climbed from €1,315 million to €1,519 million on account of investments in money market funds. Trade receivables increased sharply from
€8,985 million to €10,089 million. Other current assets were €298 million higher at €3,113 million. This figure includes the deferred expense of €173 million at the reporting date that was recognised for the prepaid annual contribution to civil servant pensions to Bundesanstalt für Post und Telekommunikation. In contrast, cash and cash equivalents declined by €595 million to €3,887 million.
At €16,008 million, equity attributable to Deutsche Post AG shareholders was higher than at 31 December 2020 (€13,777 million). Positive factors here were consolidated net profit, the remeasurement of pension provisions and currency effects, while the dividend paid and the share buy-back programme reduced this figure. Higher interest rates were the main reason for a decrease in provisions for pensions and similar obligations by €1,252 million to €4,583 million. At €19,197 million, financial liabilities were slightly above the figure as at 31 December 2020 (€19,098 million). Trade payables increased from €7,309 million to €7,663 million. Other current liabilities increased significantly by €551 million to €5,686 million, due primarily to an increase in employee-related liabilities.
Our net debt rose from €12,928 million as at 31 December 2020 to €13,343 million as at 30 June 2021. At 28.5 %, the equity ratio exceeded the figure as at 31 December 2020 (25.5 %). Net interest cover jumped from 6.3 to 17.0. Net gearing was 44.8 % as at 30 June 2021.
| Net debt | 12,928 | 13,343 |
|---|---|---|
| Financial assets | 5,798 | 5,407 |
| Positive fair value of non-current financial derivatives 2 |
1 | 1 |
| Current financial assets | 1,315 | 1,519 |
| Cash and cash equivalents | 4,482 | 3,887 |
| Financial liabilities 1 | 18,726 | 18,750 |
| Current financial liabilities | 2,893 | 3,053 |
| Non-current financial liabilities | 15,833 | 15,697 |
| 31 Dec. 2020 |
30 June 2021 |
|
| € m |
1 Less operating financial liabilities.
2 Recognised in non-current financial assets in the balance sheet.
| € m | ||||||
|---|---|---|---|---|---|---|
| H 1 2020 | H 1 2021 | + / – % | Q 2 2020 | Q 2 2021 | + / – % | |
| Revenue | 8,667 | 11,451 | 32.1 | 4,517 | 5,952 | 31.8 |
| of which Europe | 3,674 | 4,887 | 33.0 | 1,799 | 2,504 | 39.2 |
| Americas | 1,814 | 2,379 | 31.1 | 905 | 1,244 | 37.5 |
| Asia Pacific | 3,270 | 4,157 | 27.1 | 1,808 | 2,170 | 20.0 |
| MEA (Middle East and Africa) | 587 | 669 | 14.0 | 273 | 336 | 23.1 |
| Consolidation / Other | – 678 | – 641 | 5.5 | –268 | –302 | –12.7 |
| Profit from operating activities (EBIT) | 958 | 2,138 | >100 | 565 | 1,177 | >100 |
| Return on sales (%) 1 | 11.1 | 18.7 | – | 12.5 | 19.8 | – |
| Operating cash flow | 1,735 | 2,884 | 66.2 | 1,052 | 1,443 | 37.2 |
1 EBIT / revenue.
| € m per day 1 | ||||||
|---|---|---|---|---|---|---|
| H 1 2020 | H 1 2021 | + / – % | Q 2 2020 | Q 2 2021 | + / – % | |
| Time Definite International (TDI) | 51.4 | 71.0 | 38.1 | 53.5 | 73.9 | 38.1 |
| Time Definite Domestic (TDD) | 4.7 | 5.9 | 25.5 | 4.8 | 5.8 | 20.8 |
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.
| Items per day (thousands) | ||||||
|---|---|---|---|---|---|---|
| H 1 2020 | H 1 2021 | + / – % | Q 2 2020 | Q 2 2021 | + / – % | |
| Time Definite International (TDI) | 989 | 1,218 | 23.2 | 1,024 | 1,231 | 20.2 |
| Time Definite Domestic (TDD) | 578 | 669 | 15.7 | 624 | 644 | 3.2 |
Revenue in the division increased by 32.1 % to €11,451 million in the first half of 2021. This includes foreign currency losses of €406 million; growth excluding these effects was 36.8 %. The revenue figure also reflects the fact that fuel surcharges were higher than in the previous year in allregions. Excluding currency effects and fuel surcharges, first-half revenue was up by 33.6 %. Per-day revenues and shipment volumes continued to increase substantially in both product lines during the reporting period.
Revenue in the Europe region increased by 33.0 % to €4,887 million in the first half of the year. That figure includes foreign currency losses of €43 million; growth excluding currency effects was 34.2 %. In the TDI product line, per-day revenue increased by 40.1 % and per-day shipment volumes by 25.0 %. In the second quarter, international per-day revenues were up by 46.5 % and shipment volumes by 23.6 %.
In the Americas region, revenue increased by 31.1 % to €2,379 million in the first half of 2021. That figure includes foreign currency losses of €141 million; growth excluding currency effects was 38.9 %. Per-day TDI volumes were up 34.9 % over the previous year. Per-day revenues grew by 50.0 %. In the second quarter, shipment volumes rose by 36.7 % and international per-day revenues by 58.4 %.
In the Asia Pacific region, half-year revenue improved by 27.1 % to €4,157 million. Excluding foreign currency losses of €118 million, revenue rose by 30.7 %. In the TDI product line, per-day revenues rose by 32.5 % and volumes were up 16.8 %.Growth in the second quarter amounted to 24.4 % for revenues per day and 9.8 % for per-day shipment volumes.
Revenue in the MEA region (Middle East and Africa) increased by 14.0 % to €669 million in the first half ofthe year. Excluding foreign currency losses of €46 million, growth was 21.8 %. Per-day TDI revenues improved by 32.3 % and per-day volumes rose 20.7 %. In the second quarter, international per-day revenues grew by 41.7 % and shipment volumes by 19.0 %.
Division EBIT surged 123.2 % in the first half of 2021 to reach €2,138 million. Return on sales increased from 11.1 % to 18.7 % in the reporting period. EBIT for the second quarter improved by 108.3 % to €1,177 million.
| H 1 2020 adjusted 1 |
H 1 2021 | + / – % | Q 2 2020 adjusted 1 |
Q 2 2021 | + / – % |
|---|---|---|---|---|---|
| 7,721 | 9,987 | 29.3 | 4,139 | 5,235 | 26.5 |
| 5,664 | 7,616 | 34.5 | 3,164 | 4,026 | 27.2 |
| 2,114 | 2,433 | 15.1 | 1,003 | 1,240 | 23.6 |
| – 57 | – 62 | – 8.8 | –28 | –31 | –10.7 |
| 264 | 528 | 100.0 | 190 | 312 | 64.2 |
| 3.4 | 5.3 | – | 4.6 | 6.0 | – |
| – 40 | 291 | >100 | 52 | 179 | >100 |
1 Prior-year figures adjusted due to reclassifications, note 4 to the consolidated financial statements.
2 EBIT / revenue.
Revenue in the division increased by 29.3 % to €9,987 million in the first half of 2021. Excluding foreign currency losses of €277 million, revenue was up by 32.9 % year-onyear. Revenue forthe second quarter of 2021 rose by 26.5 %
compared with the prior-year figure. In the Global Forwarding business unit, revenue was up 34.5 % to €7,616 million in the first half of 2021. Excluding foreign currency losses of €280 million, the increase was 39.4 %. At €1,496 million, gross profitin theGlobal Forwarding business unit was likewise up on the prior-year figure of €1,263 million.
| H 1 2020 | H 1 2021 | + / – % | Q 2 2020 | Q 2 2021 | + / – % |
|---|---|---|---|---|---|
| adjusted 1 | adjusted 1 | ||||
| 2,975 | 3,824 | 28.5 | 1,820 | 1,984 | 9.0 |
| 1,703 | 2,749 | 61.4 | 862 | 1,494 | 73.3 |
| 986 | 1,043 | 5.8 | 482 | 548 | 13.7 |
| 5,664 | 7,616 | 34.5 | 3,164 | 4,026 | 27.2 |
1 Prior-year figures adjusted due to reclassifications, note 4 to the consolidated financial statements.
| Thousands | |||||||
|---|---|---|---|---|---|---|---|
| H 1 2020 | H 1 2021 | + / – % | Q 2 2020 | Q 2 2021 | + / – % | ||
| adjusted 1 | adjusted 1 | ||||||
| Air freight exports | tonnes | 799 | 1,011 | 26.5 | 381 | 517 | 35.7 |
| Ocean freight | TEU 2 | 1,355 | 1,551 | 14.5 | 653 | 787 | 20.5 |
1 Prior-year figures adjusted due to reclassifications, note 4 to the consolidated financial statements.
2 Twenty-foot equivalent units.
We registered growth of 26.5 % in airfreight volumes in the first half of 2021, due mainly to the resumption of trade in some regions. The highest growth was in Asia and the United States. At the same time, available market capacity remained at a low level on account ofthe limitations on passenger flights, which led to significantly increased freight rates. Our revenue from air freight therefore exceeded the prior-yearlevel by 28.5 % in the first six months.Gross profit improved by 8.3 %. In the second quarter of 2021, airfreight revenue rose by 9.0 %. Gross profit remained 4.1 % below the very high level of the previous year.
In the first half of 2021, ocean freight volumes were up 14.5 % on the prior-year level. This was also due to the resumption of global trade, particularly from Asia to North America and Europe. The capacity situation again tightened compared with the prior year. Ocean freight revenues increased substantially, by 61.4 % in the first half of the year; gross profit improved by 60.7 %. The corresponding growth forthe second quarter of 2021 amounted to 73.3 % and 76.8 %, respectively.
In the Freight business unit, revenue increased by 15.1 % to €2,433 million in the first half of 2021 with foreign currency gains of €3 million. The primary reason for the volume growth of 13.7 % is the economic recovery in large swaths of Europe and the resulting increase in transport demand. The business unit's gross profit rose by 14.1 % to €630 million.Revenue forthe second quarter was up 23.6 % year-on-year and volumes rose by 16.7 %.
EBIT in the division rose from €264 million to €528 million in the first half of 2021. With the EBIT margin at 5.3 %, EBIT amounts to 24.8 % of gross profit. EBIT increased from €190 million to €312 million in the second quarter.
| H 1 2020 | H 1 2021 | + / – % | Q 2 2020 | Q 2 2021 | + / – % |
|---|---|---|---|---|---|
| adjusted 1 | adjusted 1 | ||||
| 5,965 | 6,556 | 9.9 | 2,733 | 3,315 | 21.3 |
| 2,915 | 3,142 | 7.8 | 1,272 | 1,609 | 26.5 |
| 2,186 | 2,443 | 11.8 | 1,042 | 1,217 | 16.8 |
| 868 | 986 | 13.6 | 420 | 497 | 18.3 |
| – 4 | –15 | <–100 | –1 | – 8 | <–100 |
| 138 | 365 | >100 | 33 | 198 | >100 |
| 2.3 | 5.6 | – | 1.2 | 6.0 | – |
| 88 | 384 | >100 | 117 | 143 | 22.2 |
1 Prior-year figures adjusted due to reclassifications, note 4 to the consolidated financial statements.
2 EBIT / revenue.
In the first half of 2021,revenue in the division increased by 9.9 % to €6,556 million. Excluding foreign currency losses of €202 million,revenue was up by 13.3 % year-on-year. All regions saw revenue grow at a pace that exceeded the normalisation of business activities.
This was due to factors including bourgeoning e-commerce business and accelerated new business gains. The Life Sciences & Healthcare, Auto-mobility andRetail sectors delivered the highest growth. In the second quarter of 2021, revenue increased by 21.3 % to €3,315 million.
Total revenue: €6,556 million
| of which Retail | 28 % |
|---|---|
| Consumer | 22 % |
| Auto-mobility | 14 % |
| Technology | 13 % |
| Life Sciences & Healthcare | 12 % |
| Engineering & Manufacturing | 6 % |
| Others | 5 % |
| of which Europe / Middle East / Africa / Consolidation | 48 % |
| Americas | 37 % |
| Asia Pacific | 15 % |
In the first half of 2021, the division concluded additional contracts worth €559 million in annualised revenue with both new and existing customers. The Life Sciences & Healthcare, Consumer and Retail sectors accounted forthe majority of the new business, with a significant portion attributable to e-commerce. The annualised contractrenewalrate remained at a consistently high level.
EBIT in the division increased to €365 million in the first half of 2021 (previous year: €138 million). The previous year included extraordinary expenses of €62 million resulting from lockdown measures. In the reporting period, revenue growth, productivity improvements and continual digital transformation all contributed to earnings growth. Division EBIT for the second quarter of 2021 amounted to €198 million (previous year: €33 million). The EBIT margin for the first six months was 5.6 %, which is significantly above adjusted pre-COVID-19 levels.
| H 1 2020 | H 1 2021 | + / – % | Q 2 2020 | Q 2 2021 | + / – % |
|---|---|---|---|---|---|
| 2,158 | 2,888 | 33.8 | 1,162 | 1,434 | 23.4 |
| 702 | 984 | 40.2 | 405 | 499 | 23.2 |
| 1,208 | 1,573 | 30.2 | 638 | 779 | 22.1 |
| 251 | 336 | 33.9 | 120 | 159 | 32.5 |
| –3 | – 5 | – 66.7 | –1 | –3 | <–100 |
| 7 | 233 | >100 | 1 | 116 | >100 |
| 0.3 | 8.1 | – | 0.1 | 8.1 | – |
| 173 | 405 | >100 | 88 | 175 | 98.9 |
1 EBIT / revenue.
The division generated revenue of €2,888 million in the first half of 2021, up 33.8 % on the prior-year figure. The robust increase in revenue in the regions is attributable to higher volumes in the B2C business. Excluding foreign currency losses of €101 million, revenue was up by a total of 38.5 % year-on-year. Division revenue for the second quarter of 2021 increased by 23.4 % to €1,434 million.
EBIT in the division improved significantly in the first half of 2021, rising to €233 million (previous year: €7 million). This was mainly due to higherrevenues in theB2C business and strict cost management. The previous yearincluded a non-recurring impairment loss of €30 million in the second quarterresulting from lockdown measures. EBIT came to €116 million in the second quarter of 2021 (previous year: €1 million). The EBIT margin forthe first half of 2021 was 8.1 %.
| € m | ||||||
|---|---|---|---|---|---|---|
| H 1 2020 | H 1 2021 | + / – % | Q 2 2020 | Q 2 2021 | + / – % | |
| Revenue | 7,837 | 8,719 | 11.3 | 3,878 | 4,164 | 7.4 |
| of which Post Germany | 3,925 | 3,872 | –1.4 | 1,800 | 1,838 | 2.1 |
| Parcel Germany | 2,738 | 3,506 | 28.0 | 1,480 | 1,686 | 13.9 |
| International | 1,111 | 1,292 | 16.3 | 571 | 617 | 8.1 |
| Other / Consolidation | 63 | 49 | –22.2 | 27 | 23 | –14.8 |
| Profit from operating activities (EBIT) | 598 | 871 | 45.7 | 264 | 315 | 19.3 |
| Return on sales (%) 1 | 7.6 | 10.0 | – | 6.8 | 7.6 | – |
| Operating cash flow | 685 | 1,105 | 61.3 | 456 | 494 | 8.3 |
1 EBIT / revenue.
At €8,719 million, division revenue exceeded the prioryear figure by 11.3 % in the first half of 2021. The increase was driven in particular by continued strong growth in the
German parcel business. Revenue for the second quarter was up 7.4 % year-on-year.
Asexpected,revenueandvolumesintheMail Communication business remained in decline on the whole, due mainly to electronic substitution.
AlthoughDialogue Marketing saw declines atthe start of the year due to the pandemic, revenues generated by direct mail rose in the second quarter compared with the prior year along with the lifting ofrestrictions.However,the second-quarter growth did not fully offset the pandemicdriven downturn in the first quarter.
Robust growth was maintained in the German parcel business. Restrictions on brick-and-mortar retail ordered by the federal government over months in the first half of 2021 and the resulting shiftto online shopping were major contributors to that trend. Even after the gradual reopening of retail shops in the course of the second quarter, the growth continued, although it did not match the pace of the preceding months. Revenue in the first half of 2021 exceeded that of the previous year by a total of 28.0 %.
In the reporting period, the import business saw a year-on-year increase in revenues mainly due to changes in shipment profiles. The share of document shipments decreased further, while the importance of shipments of goods increased. Trends varied as regards exports of goods and documents to the rest of Europe and the world. The number of shipments containing merchandise increased, especially in our European destination countries, while the volume of document shipments declined further.
| € m | ||||||
|---|---|---|---|---|---|---|
| H 1 2020 | H 1 2021 | + / – % | Q 2 2020 | Q 2 2021 | + / – % | |
| Post Germany | 3,925 | 3,872 | –1.4 | 1,800 | 1,838 | 2.1 |
| of which Mail Communication | 2,721 | 2,694 | –1.0 | 1,258 | 1,252 | – 0.5 |
| Dialogue Marketing | 853 | 824 | –3.4 | 370 | 411 | 11.1 |
| Other / Consolidation Post Germany | 351 | 354 | 0.9 | 172 | 175 | 1.7 |
| Parcel Germany | 2,738 | 3,506 | 28.0 | 1,480 | 1,686 | 13.9 |
Post & Parcel Germany: revenue
| Mail items (millions) | ||||||
|---|---|---|---|---|---|---|
| H 1 2020 | H 1 2021 | + / – % | Q 2 2020 | Q 2 2021 | + / – % | |
| Post Germany 1 | 6,923 | 6,748 | –2.5 | 3,077 | 3,267 | 6.2 |
| of which Mail Communication | 3,177 | 3,130 | –1.5 | 1,411 | 1,410 | – 0.1 |
| Dialogue Marketing | 3,242 | 3,135 | –3.3 | 1,408 | 1,597 | 13.4 |
| Parcel Germany 2 | 749 | 946 | 26.3 | 403 | 457 | 13.4 |
1 Q 1 2021 adjusted to 3,481 million items from 3,399 million items.
2 Without international shipments.
EBIT improves considerably in the first half of the year Division EBIT was up substantially by 45.7 % to reach €871 million in the first half of 2021. This was mainly due to higher volumes and revenues in the parcel business and strict cost management.By contrast, we registered revenue
losses due to volumes in Mail Communication andDialogue Marketing. Division EBIT climbed 19.3 % to €315 million in the second quarter of 2021.
On 22 March 2021, we presented the key data for our updated Sustainability Roadmap aimed at accelerating our ESGinitiatives. A major elementis a new climate protection objective striving for an absolute reduction in greenhouse gas emissions by 2030. This will require additional expenditure on green technologies of around €7 billion by 2030. Moreover, ESG criteria will be incorporated into variable Board of Management remuneration from 2022 onward.
We are working steadily on implementing our Sustainability Roadmap.However, we currently expect a noticeable year-on-yearincrease in greenhouse gas emissions forthe reporting year on account of the positive business performance in all divisions and the partly significant increase in transport volumes. This jump in emissions at the start of our mid-term horizon – prior to a reduction – is included in our planning. We hereby confirm our target of reducing our greenhouse gas emissions to under 29 million tonnes by 2030 while continuing to grow our business.
Notwithstanding the risks posed by COVID-19 mutations, the progress on vaccination made in most advanced economies to date is expected to enable the global economic upswing to continue in the second half of 2021. IHS Markit anticipates global economic growth of 5.8 % and the IMF projects an increase in global trading volumes by 8.4 %, which more or less offsets the downturn in the previous year. The greatest risk to the current outlook is the virus mutations that could result in renewed lockdowns. Otherwise,the discovery of drugs effective againstthe virus could provide additional momentum for the economic recovery.
No growth in intercontinental transport capacity is expected for the rest of the year.
The Chinese gross domestic product could see particularly strong growth (IHS: 8.5 %; IMF: 8.4 %), whereas Japan may very welltrailthe global average (IHS: 2.4 %; IMF: 3.3 %).
In the United States, economic growth is forecast to be above average (IHS: 6.6 %; IMF: 6.4 %). The upswing will likely be less fast-paced in the eurozone (IHS: 5.0 %; IMF: 4.4 %) due to the comparatively much less robust fiscal stimulus there.
In Germany,the economic upturn is anticipated to pick up speed in the third quarter, driven by private consumption and particularly services. Industrial production and exports are also expected to grow. Because the upturn began later in Germany,the country'sGDP growth for 2021 is projected to come in somewhat below average (IHS: 3.8 %; IMF: 3.6 %; German Council of Economic Experts: 3.1 %).
In expectation of unchanged high shipment volumes and improved efficiency, the Board of Management raised its short- and mid-term earnings guidance at its meeting on 7 July 2021.
Consolidated EBIT forthe current financial yearis now expected to be more than €7.0 billion in view of strong earnings growth. This figure includes additional staff costs totalling around €200 million for a pandemic-related onetime bonus.
For the DHL divisions, we expect total EBIT to come to between €5.7 billion and €5.8 billion. All four DHL divisions contributed to the raised guidance atDHL. The Post & Parcel Germany division's EBIT is projected to be between €1.7 billion and €1.8 billion. Group Functions is anticipated to contribute approximately €–0.4 billion to earnings as before.
For the full year 2021, the Group now forecasts a free cash flow of more than €3.2 billion. Capital expenditure (excluding leases)for 2021 is forecast at around €3.9 billion.
The mid-term consolidated EBIT figure for 2023 was lifted to more than €7.4 billion. Expected cumulative free cash flow forthe period 2021 to 2023 remained unchanged at around €9 billion. For the same time frame, cumulative capital expenditure (excluding leases) is anticipated to amount to around €11 billion.
Overall, the impact of COVID-19 now presents an opportunity with high significance.
Lawmakers eliminated the formal lack of a legal basis for pricing approvals for the period from 2016 to 2018 by way of an amendment to Postgesetz (German Postal Act) entering into force in March 2021. As a result, previous regulatory practice can continue by and large. Nonetheless, possible negative effects for Deutsche Post of the courts' decisions and actions currently pending still cannot be ruled out and therefore represent a medium risk.
Also determined to be a medium risk is the Union Customs Code amendment to levy import VAT on goods from non-EU countries valued at under €22 starting on 1 July 2021.
The aggregate effect of all foreign currency gains and losses is currently deemed to result in an opportunity of medium relevance for the Group.
The Group's overall opportunity and risk situation did not otherwise change significantly during the first half of 2021 as compared with the situation described in the 2020 Annual Report beginning on page 60. 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.
No internet sites that may be referred to in the Interim Group Management Report form part of the report.
1 January to 30 June
| € m | |||||
|---|---|---|---|---|---|
| Note | H 1 2020 | H 1 2021 | Q 2 2020 | Q 2 2021 | |
| Revenue 1 | 5 | 31,401 | 38,333 | 15,937 | 19,473 |
| Other operating income | 6 | 971 | 942 | 549 | 528 |
| Changes in inventories and work performed and capitalised | 7 | 137 | 188 | 117 | 151 |
| Materials expense 1 | –15,867 | –19,799 | – 8,180 | –10,216 | |
| Staff costs | –10,952 | –11,678 | – 5,424 | – 5,840 | |
| Depreciation, amortisation and impairment losses | 8 | –1,963 | –1,883 | – 942 | – 953 |
| Other operating expenses | 9 | –2,191 | –2,153 | –1,114 | –1,104 |
| Net income / loss from investments accounted for using the equity method |
10 | –32 | 44 | –31 | 44 |
| Profit from operating activities (EBIT) | 1,504 | 3,994 | 912 | 2,083 | |
| Financial income | 141 | 75 | 56 | 45 | |
| Finance costs | – 416 | –373 | –209 | –195 | |
| Foreign currency losses | –31 | –21 | –2 | –15 | |
| Net finance costs | –306 | –319 | –155 | –165 | |
| Profit before income taxes | 1,198 | 3,675 | 757 | 1,918 | |
| Income taxes | –288 | –1,029 | –182 | – 537 | |
| Consolidated net profit for the period | 910 | 2,646 | 575 | 1,381 | |
| attributable to Deutsche Post AG shareholders | 826 | 2,482 | 525 | 1,292 | |
| attributable to non-controlling interests | 84 | 164 | 50 | 89 | |
| Basic earnings per share (€) | 11 | 0.67 | 2.01 | 0.43 | 1.05 |
| Diluted earnings per share (€) | 11 | 0.66 | 1.96 | 0.42 | 1.02 |
1 Prior-year figures adjusted, note 4.
1 January to 30 June
| € m | ||||
|---|---|---|---|---|
| H 1 2020 | H 1 2021 | Q 2 2020 | Q 2 2021 | |
| Consolidated net profit for the period | 910 | 2,646 | 575 | 1,381 |
| Items that will not be reclassified to profit or loss | ||||
| Change due to remeasurements of net pension provisions | –387 | 1,731 | – 488 | 286 |
| Reserve for equity instruments without recycling | –11 | 12 | –1 | 9 |
| Other changes in retained earnings | 0 | 0 | 0 | 0 |
| Income taxes relating to components of other comprehensive income | 71 | –173 | 58 | –104 |
| Share of other comprehensive income of investments accounted for using the equity method, net of tax |
0 | 0 | 0 | 0 |
| Total, net of tax | –327 | 1,570 | – 431 | 191 |
| Items that may be subsequently reclassified to profit or loss Hedging reserves |
||||
| Changes from unrealised gains and losses | 19 | 22 | 20 | 11 |
| Changes from realised gains and losses | –10 | 1 | – 5 | –3 |
| Currency translation reserve | ||||
| Changes from unrealised gains and losses | –369 | 375 | –221 | –105 |
| Changes from realised gains and losses | 0 | 0 | 0 | 0 |
| Income taxes relating to components of other comprehensive income | –2 | – 6 | – 4 | –2 |
| Share of other comprehensive income of investments accounted for using the equity method, net of tax |
–1 | 1 | –2 | –2 |
| Total, net of tax | –363 | 393 | –212 | –101 |
| Other comprehensive income, net of tax | – 690 | 1,963 | – 643 | 90 |
| Total comprehensive income | 220 | 4,609 | – 68 | 1,471 |
| attributable to Deutsche Post AG shareholders | 141 | 4,434 | –114 | 1,382 |
| attributable to non-controlling interests | 79 | 175 | 46 | 89 |
| € m | |||
|---|---|---|---|
| Note | 31 Dec. 2020 | 30 June 2021 | |
| ASSETS | |||
| Intangible assets | 12 | 11,658 | 11,829 |
| Property, plant and equipment | 12 | 22,007 | 22,854 |
| Investment property | 12 | 10 | |
| Investments accounted for using the equity method | 73 | 120 | |
| Non-current financial assets | 13 | 746 | 834 |
| Other non-current assets | 160 | 726 | |
| Deferred tax assets | 2,390 | 1,908 | |
| Non-current assets | 37,046 | 38,281 | |
| Inventories | 439 | 573 | |
| Current financial assets | 13 | 1,315 | 1,519 |
| Trade receivables | 8,985 | 10,089 | |
| Other current assets | 2,815 | 3,113 | |
| Income tax assets | 209 | 216 | |
| Cash and cash equivalents | 4,482 | 3,887 | |
| Assets held for sale | 16 | 13 | |
| Current assets | 18,261 | 19,410 | |
| TOTAL ASSETS | 55,307 | 57,691 |
| Note | 31 Dec. 2020 | 30 June 2021 | |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Issued capital | 14 | 1,239 | 1,235 |
| Capital reserves | 15 | 3,519 | 3,510 |
| Other reserves | –1,666 | –1,271 | |
| Retained earnings | 15 | 10,685 | 12,534 |
| Equity attributable to Deutsche Post AG shareholders | 13,777 | 16,008 | |
| Non-controlling interests | 301 | 449 | |
| Equity | 14,078 | 16,457 | |
| Provisions for pensions and similar obligations | 5,835 | 4,583 | |
| Deferred tax liabilities | 36 | 85 | |
| Other non-current provisions | 1,790 | 1,863 | |
| Non-current financial liabilities | 15,851 | 15,720 | |
| Other non-current liabilities | 328 | 317 | |
| Non-current provisions and liabilities | 23,840 | 22,568 | |
| Current provisions | 1,080 | 1,126 | |
| Current financial liabilities | 3,247 | 3,477 | |
| Trade payables | 7,309 | 7,663 | |
| Other current liabilities | 5,135 | 5,686 | |
| Income tax liabilities | 611 | 714 | |
| Liabilities associated with assets held for sale | 7 | 0 | |
| Current provisions and liabilities | 17,389 | 18,666 | |
| TOTAL EQUITY AND LIABILITIES | 55,307 | 57,691 |
| € m | ||||
|---|---|---|---|---|
| H 1 2020 | H 1 2021 | Q 2 2020 | Q 2 2021 | |
| Consolidated net profit for the period | 910 | 2,646 | 575 | 1,381 |
| Income taxes | 288 | 1,029 | 182 | 537 |
| Net finance costs | 306 | 319 | 155 | 165 |
| Profit from operating activities (EBIT) | 1,504 | 3,994 | 912 | 2,083 |
| Depreciation, amortisation and impairment losses | 1,963 | 1,883 | 942 | 953 |
| Net costs / net income from disposal of non-current assets | 37 | 8 | 11 | 6 |
| Non-cash income and expense | 78 | –35 | 8 | – 56 |
| Change in provisions | 87 | –78 | 113 | – 87 |
| Change in other non-current assets and liabilities | –34 | –20 | –27 | – 4 |
| Dividend received | 1 | 0 | 1 | 0 |
| Income taxes paid | –325 | – 544 | –157 | –271 |
| Net cash from operating activities before changes in working capital | 3,311 | 5,208 | 1,803 | 2,624 |
| Changes in working capital | ||||
| Inventories | –13 | –129 | – 97 | –101 |
| Receivables and other current assets | – 600 | –1,312 | 27 | –273 |
| Liabilities and other items | –302 | 961 | – 87 | –12 |
| Net cash from operating activities | 2,396 | 4,728 | 1,646 | 2,238 |
| Subsidiaries and other business units | 4 | 3 | 4 | 3 |
| Property, plant and equipment and intangible assets | 42 | 56 | 16 | 19 |
| Other non-current financial assets | 20 | 20 | 7 | 8 |
| Proceeds from disposal of non-current assets | 66 | 79 | 27 | 30 |
| Subsidiaries and other business units | 0 | 0 | 0 | 0 |
| Property, plant and equipment and intangible assets | –1,056 | –1,429 | – 459 | –725 |
| Investments accounted for using the equity method and other investments | –13 | –2 | – 8 | 0 |
| Other non-current financial assets | –7 | –26 | –2 | –24 |
| Cash paid to acquire non-current assets | –1,076 | –1,457 | – 469 | –749 |
| Interest received | 37 | 33 | 19 | 18 |
| Current financial assets | – 682 | –145 | – 691 | 17 |
| Net cash used in investing activities | –1,655 | –1,490 | –1,114 | – 684 |
| H 1 2020 | H 1 2021 | Q 2 2020 | Q 2 2021 | |
|---|---|---|---|---|
| Proceeds from issuance of non-current financial liabilities | 2,440 | 130 | 2,284 | 130 |
| Repayments of non-current financial liabilities | – 959 | –1,808 | – 471 | – 507 |
| Change in current financial liabilities | – 92 | 55 | –134 | –373 |
| Other financing activities | –21 | 36 | –22 | 32 |
| Cash paid for transactions with non-controlling interests | – 6 | 0 | –2 | 0 |
| Dividend paid to Deutsche Post AG shareholders | 0 | –1,673 | 0 | –1,673 |
| Dividend paid to non-controlling interest shareholders | –16 | –27 | – 9 | –15 |
| Purchase of treasury shares | – 45 | –313 | –15 | –206 |
| Interest paid | –276 | –268 | –151 | –150 |
| Net cash from / used in financing activities | 1,025 | –3,868 | 1,480 | –2,762 |
| Net change in cash and cash equivalents | 1,766 | – 630 | 2,012 | –1,208 |
| Effect of changes in exchange rates on cash and cash equivalents | – 59 | 35 | –21 | –18 |
| Changes in cash and cash equivalents due to changes in consolidated group | 0 | 0 | 0 | 0 |
| Cash and cash equivalents at beginning of reporting period | 2,862 | 4,482 | 2,578 | 5,113 |
| Cash and cash equivalents at end of reporting period | 4,569 | 3,887 | 4,569 | 3,887 |
1 January to 30 June
€ m
| Other reserves | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Issued capital | Capital reserves | Hedging reserves |
Reserve for equity instruments without recycling |
Currency translation reserve |
Retained earnings |
Equity attributable to Deutsche Post AG shareholders |
Non-controlling interests |
Total equity | |
| Balance at 1 January 2020 | 1,236 | 3,482 | – 5 | –22 | – 673 | 10,099 | 14,117 | 275 | 14,392 |
| Dividend | 0 | 0 | –22 | –22 | |||||
| Transactions with non-controlling interests | 0 | 0 | –3 | 4 | 1 | –7 | – 6 | ||
| Changes in non-controlling interests due to changes in consolidated group |
0 | 0 | 0 | ||||||
| Capital increase / reduction | 1 | – 5 | 31 | 27 | 0 | 27 | |||
| 28 | –29 | –1 | |||||||
| Total comprehensive income Consolidated net profit for the period |
826 | 826 | 84 | 910 | |||||
| Currency translation differences | –365 | –365 | – 5 | –370 | |||||
| Change due to remeasurements of net pension provisions | –316 | –316 | 0 | –316 | |||||
| Other changes | 7 | –11 | 0 | – 4 | 0 | – 4 | |||
| 141 | 79 | 220 | |||||||
| Balance at 30 June 2020 | 1,237 | 3,477 | 2 | –33 | –1,041 | 10,644 | 14,286 | 325 | 14,611 |
| Balance at 1 January 2021 | 1,239 | 3,519 | –17 | –27 | –1,622 | 10,685 | 13,777 | 301 | 14,078 |
| Dividend | –1,673 | –1,673 | –27 | –1,700 | |||||
| Transactions with non-controlling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Changes in non-controlling interests due to changes in consolidated group |
0 | 0 | 0 | ||||||
| Capital increase / reduction | – 4 | – 9 | – 517 | – 530 | 0 | – 530 | |||
| –2,203 | –27 | –2,230 | |||||||
| Total comprehensive income Consolidated net profit for the period |
2,482 | 2,482 | 164 | 2,646 | |||||
| Currency translation differences | 366 | 366 | 11 | 377 | |||||
| Change due to remeasurements of net pension provisions | 1,557 | 1,557 | 0 | 1,557 | |||||
| Other changes | 17 | 12 | 0 | 29 | 0 | 29 | |||
| 4,434 | 175 | 4,609 | |||||||
| Balance at 30 June 2021 | 1,235 | 3,510 | 0 | –15 | –1,256 | 12,534 | 16,008 | 449 | 16,457 |
Deutsche Post AG is a listed corporation domiciled in Bonn, Germany. The condensed consolidated interim financial statements of Deutsche Post AG and its subsidiaries coverthe period from 1 January to 30 June 2021 and have been reviewed.
The condensed consolidated interim financial statements as at 30 June 2021 were prepared in accordance with the International FinancialReporting Standards (IFRS s) and related interpretations issued by the International Accounting Standards Board (IASB) forinterim financialreporting, as adopted by the EuropeanUnion. These interim financial statements thus include all information and disclosures required by IFRS s 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 farin financial year 2021 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 financial year 2020. Exceptions are the new or
revised International Financial Reporting Standards (IFRS s) required to be applied for the first time in financial year 2021 that, however, have not had a material influence on the consolidated interim financial statements. Detailed explanations of these can be found in the 2020 Annual Report in notes 4 and 6 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 2021 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.
No separate reporting is provided in cases where effects cannot be unequivocally attributed to the COVID-19 pandemic.
The number of companies consolidated with Deutsche Post AG is shown in the following table:
| 31 Dec. 2020 |
30 June 2021 |
|
|---|---|---|
| Number of fully consolidated companies (subsidiaries) |
||
| German | 81 | 82 |
| Foreign | 633 | 631 |
| Number of joint operations | ||
| German | 1 | 1 |
| Foreign | 0 | 0 |
| Number of investments accounted for using the equity method |
||
| German | 1 | 1 |
| Foreign | 17 | 16 |
No significant changes in the group of companies consolidated arose in the first half of 2021.
The following significant transaction took place in the first half of 2021:
In March 2021, the Board of Management of Deutsche Post AG resolved a share buy-back programme for up to 30 million shares at a total purchase price of up to €1 billion. The repurchased shares will either be retired or used to service long-term executive remuneration plans. The repurchase via the stock exchange started on 10 May 2021 and will end in March 2022 at the latest. The buy-back programme is based on the authorisation resolved by the company's Annual General Meeting on 6 May 2021, notes 14 and 15.
The Lead Logistics Provider (LLP) business which had, to date, been partially reported in the Global Forwarding, Freight segment has been included in the Supply Chain division since January 2021. The presentation of revenue and materials expense was standardised based on a review of certain customer contracts as part of this transition. The prior-period amounts were adjusted accordingly.
| € m | Adjusted | ||
|---|---|---|---|
| Amount Adjustment | amount | ||
| H 1 2020 | |||
| Revenue | 31,446 | – 45 | 31,401 |
| Materials expense | –15,912 | 45 | –15,867 |
| Q 2 2020 | |||
| Revenue | 15,959 | –22 | 15,937 |
| Materials expense | – 8,202 | 22 | – 8,180 |
| € m | ||
|---|---|---|
| H 1 2020 | H 1 2021 | |
| Express | 8,483 | 11,204 |
| Global Forwarding, Freight 1 | 7,235 | 9,358 |
| Global Forwarding | 5,554 | 7,473 |
| Freight | 1,681 | 1,885 |
| Supply Chain 1 | 5,926 | 6,501 |
| eCommerce Solutions | 2,094 | 2,824 |
| Post & Parcel Germany | 7,624 | 8,424 |
| Post Germany | 3,912 | 3,851 |
| Parcel Germany | 2,725 | 3,491 |
| International | 909 | 1,007 |
| Other | 78 | 75 |
| Group Functions | 39 | 22 |
| Total revenue | 31,401 | 38,333 |
1 Prior-year figures adjusted, note 4.
| € m | ||
|---|---|---|
| H 1 2020 | H 1 2021 | |
| Income from currency translation | 131 | 156 |
| Insurance income | 133 | 142 |
| Income from the remeasurement of liabilities | 94 | 74 |
| Income from the reversal of provisions | 73 | 72 |
| Operating lease income | 52 | 58 |
| Subsidies | 113 | 55 |
| Income from fees and reimbursements | 52 | 52 |
| Income from prior-period billings | 35 | 42 |
| Sublease income | 32 | 36 |
| Income from the disposal of assets | 20 | 21 |
| Income from loss compensation | 16 | 13 |
| Commission income | 28 | 11 |
| Recoveries on receivables previously | ||
| written off | 8 | 10 |
| Reversals of impairment losses on | ||
| receivables and other assets | 2 | 10 |
| Income from the derecognition of liabilities | 8 | 9 |
| Income from derivatives | 18 | 2 |
| Miscellaneous | 156 | 179 |
| Total | 971 | 942 |
Income from the disposal of assets includes a gain of €4 million on the disposal of the fuel business of DHL Supply Chain Limited, UK. The company's assets and liabilities had been reported as held for sale as at 31 December 2020.
In the previous year, greater use was made of government subsidies for labour costs in the course of lockdown measures in the United Kingdom.
Miscellaneous other operating income includes a large number of smaller individual items.
| H 1 2020 | H 1 2021 |
|---|---|
| 51 | 67 |
| 86 | 121 |
| 137 | 188 |
The increase in work performed and capitalised is largely attributable to the production of StreetScooter electric vehicles for Group companies.
| € m | ||
|---|---|---|
| H 1 2020 | H 1 2021 | |
| Amortisation of and impairment losses on intangible assets, of which impairment loss: 0 (previous year: 3) |
109 | 95 |
| Depreciation of and impairment losses on property, plant and equipment acquired, of which impairment loss: 0 (previous year: 19) |
770 | 786 |
| Depreciation of and impairment losses on right-of-use assets, of which impairment loss: 0 (previous year: 50) |
1,071 | 1,002 |
| Impairment of goodwill | 13 | 0 |
| Depreciation, amortisation and impairment | ||
| losses | 1,963 | 1,883 |
The previous year's impairment losses relate chiefly to negative impacts stemming from lockdown measures resulting from the pandemic.Goodwill impairmentis attributable to the realignment of StreetScooter GmbH, see also note 12.
| € m | ||
|---|---|---|
| H 1 2020 | H 1 2021 | |
| Cost of purchased cleaning and security | ||
| services | 232 | 273 |
| Warranty expenses, refunds and | ||
| compensation payments | 264 | 226 |
| Expenses for advertising and public relations | 152 | 151 |
| Currency translation expenses | 136 | 144 |
| Other business taxes | 135 | 138 |
| Telecommunication costs | 106 | 107 |
| Office supplies | 91 | 101 |
| Insurance costs | 94 | 100 |
| Travel and training costs | 109 | 96 |
| Customs clearance-related charges | 76 | 91 |
| Services provided by Bundesanstalt für Post | ||
| und Telekommunikation (German federal | ||
| post and telecommunications agency) | 91 | 83 |
| Write-downs of current assets | 121 | 75 |
| Consulting costs (including tax advice) | 41 | 55 |
| Monetary transaction costs | 37 | 50 |
| Entertainment and corporate hospitality | ||
| expenses | 52 | 38 |
| Losses on disposal of assets | 52 | 37 |
| Contributions and fees | 29 | 37 |
| Voluntary social benefits | 40 | 36 |
| Commissions paid | 31 | 35 |
| Legal costs | 24 | 31 |
| Audit costs | 14 | 14 |
| Donations | 14 | 12 |
| Miscellaneous | 250 | 223 |
| Total | 2,191 | 2,153 |
Miscellaneous other operating expenses include a large number
of smaller individual items.
Impairment losses of €30 million were recognised in the previous year due to lockdown measures. These related exclusively to the France-based Relais Colis SAS, which was assigned to the eCommerce Solutions segment. The net income of €44 million generated in the financial 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.
Basic earnings per share in the reporting period were €2.01 (previous year: €0.67).
| Basic earnings per share | € | 0.67 | 2.01 |
|---|---|---|---|
| Weighted average number of shares outstanding | number | 1,235,591,845 | 1,237,575,838 |
| Consolidated net profit for the period attributable to Deutsche Post AG shareholders | € m | 826 | 2,482 |
| H 1 2020 | H 1 2021 | ||
Diluted earnings per share in the reporting period were €1.96 (previous year: €0.66).
| H 1 2020 | H 1 2021 | ||
|---|---|---|---|
| Consolidated net profit for the period attributable to Deutsche Post AG shareholders | € m | 826 | 2,482 |
| Plus interest expense on the convertible bond | € m | 4 | 4 |
| Less income taxes 1 | € m | 0 | 0 |
| Adjusted consolidated net profit for the period attributable to Deutsche Post AG shareholders | € m | 830 | 2,486 |
| Weighted average number of shares outstanding | number | 1,235,591,845 | 1,237,575,838 |
| Potentially dilutive shares | number | 21,050,277 | 32,314,787 |
| Weighted average number of shares for diluted earnings | number | 1,256,642,122 | 1,269,890,625 |
| Diluted earnings per share | € | 0.66 | 1.96 |
1 Rounded below €1 million.
Investments in intangible assets (not including goodwill), property, plant and equipment acquired and right-of-use assets amounted to €2,750 million in the first half of 2021 (previous year: €2,321 million).
| Investments | ||
|---|---|---|
| € m | ||
| 30 June | 30 June | |
| 2020 | 2021 | |
| Intangible assets (not including goodwill) | 110 | 106 |
| Acquired property, plant and equipment | ||
| Land and buildings | 49 | 76 |
| Technical equipment and machinery | 63 | 66 |
| Transport equipment | 120 | 193 |
| Aircraft | 67 | 47 |
| IT equipment | 25 | 22 |
| Operating and office equipment | 26 | 21 |
| Advance payments and assets under | ||
| development | 475 | 846 |
| 825 | 1,271 | |
| Right-of-use assets | ||
| Land and buildings | 866 | 1,033 |
| Technical equipment and machinery | 44 | 17 |
| Transport equipment | 138 | 112 |
| Aircraft | 337 | 138 |
| IT equipment | 1 | 0 |
| Advance payments | 0 | 73 |
| 1,386 | 1,373 | |
| Total | 2,321 | 2,750 |
ments and assets under development, and advance payments on right-of-use assets.
Goodwill changed as follows:
| € m | ||
|---|---|---|
| 2020 | 2021 | |
| Cost | ||
| Balance at 1 January | 12,398 | 12,040 |
| Disposals | 0 | –13 |
| Currency translation differences | –358 | 172 |
| Balance at 31 December / 30 June | 12,040 | 12,199 |
| Amortisation and impairment losses | ||
| Balance at 1 January | 1,062 | 1,042 |
| Disposals | 0 | –13 |
| Impairment losses | 13 | 0 |
| Currency translation differences | –33 | 22 |
| Balance at 31 December / 30 June | 1,042 | 1,051 |
| Carrying amount at 31 December / 30 June | 10,998 | 11,148 |
The disposals as well as the previous year's impairment losses are both attributable to Corporate Incubations. When this board department was dissolved as at 1 January 2021, the goodwill attributable to this department, which was written off in full, was derecognised.
| € m | Non-current | Current | Total | |||
|---|---|---|---|---|---|---|
| 31 Dec. 2020 | 30 June 2021 | 31 Dec. 2020 | 30 June 2021 | 31 Dec. 2020 | 30 June 2021 | |
| Assets measured at cost | 466 | 507 | 81 | 161 | 547 | 668 |
| Assets at fair value through other comprehensive income |
29 | 41 | 0 | 0 | 29 | 41 |
| Assets at fair value through profit or loss | 251 | 286 | 1,234 | 1,358 | 1,485 | 1,644 |
| Financial assets | 746 | 834 | 1,315 | 1,519 | 2,061 | 2,353 |
In the first half of 2021, three Boeing 777 aircraft were added as planned, thereof two as right-of-use assets, in the course of the renewal ofthe intercontinental Express Boeing 777 aircraft fleet. Advance payments were additionally made for eight aircraft ordered in the previous year and reported under advance payCurrent financial assets increased due to money market fund purchases. Net impairment losses amounted to €–49 million in the first half of 2021 (previous year: €–102 million).
KfW Bankengruppe (KfW) held a 20.5 % interestin the share capital of Deutsche Post AGas at 30 June 2021. Free float accounted for 79.2 % of the shares and the remaining 0.3 % of shares are owned by Deutsche Post AG.
The issued capital is composed of 1,239,059,409 no-par value registered shares (ordinary shares) with a notional interest in the share capital of €1 per share, and is fully paid up.
| € m | ||
|---|---|---|
| 2020 | 2021 | |
| Issued capital | ||
| Balance at 1 January | 1,237 | 1,239 |
| Addition due to contingent capital increase (Performance Share Plan) |
2 | 0 |
| Balance at 31 December / 30 June | 1,239 | 1,239 |
| Treasury shares | ||
| Balance at 1 January | –1 | 0 |
| Purchase of treasury shares | –2 | – 6 |
| Issue / sale of treasury shares | 3 | 2 |
| Balance at 31 December / 30 June | 0 | – 4 |
| Total at 31 December / 30 June | 1,239 | 1,235 |
Under the share buy-back programme, 3,613,272 shares were purchased in the period to 30 June 2021 for a total amount of €197 million at an average price of €54.39 per share. The repurchased shares may either be used to service long-term executive remuneration plans or for a capital reduction.
In the first half of 2021,treasury shares were also acquired and issued to executives to settle the 2020 tranche and claims to matching shares under the 2016 tranche. The shares were acquired at an average price per share of €44.96 for a total of €118 million.
Deutsche Post AG held 3,684,527 treasury shares as at 30 June 2021.
| € m | ||
|---|---|---|
| 2020 | 2021 | |
| Balance at 1 January | 3,482 | 3,519 |
| Share Matching Scheme | ||
| Addition | 87 | 74 |
| Exercise | –77 | – 99 |
| Total for Share Matching Scheme | 10 | –25 |
| Performance Share Plan | ||
| Addition | 26 | 12 |
| Exercise | –26 | 0 |
| Total for Performance Share Plan | 0 | 12 |
| Issue of treasury shares | 24 | 0 |
| Differences between purchase and issue | ||
| prices of treasury shares | 3 | 4 |
| Balance at 31 December / 30 June | 3,519 | 3,510 |
| € m | ||
|---|---|---|
| 30 June 2020 |
30 June 2021 |
|
| Share buy-back under tranche I | 0 | –193 |
| Obligation to repurchase shares under tranche I | 0 | –303 |
| Purchase / issue of treasury shares – Share Matching Scheme |
26 | –1 |
| Exercise of treasury shares – Share Matching | ||
| Scheme | 5 | –18 |
| Other | 0 | –2 |
| Total | 31 | – 517 |
The first tranche of the share buy-back programme, with a total volume of up to €500 million, is being implemented by an independent financial services provider between 10 May 2021 and 17 September 2021 on the basis of an irrevocable agreement. At the time the contractwas concluded,the resulting obligationwas 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 2021. The obligation to repurchase shares after 30 June 2021 is included in the amount of €303 million.
Retained earnings mainly include changes due to capital increases or reductions:
| € m | Global Forwarding, | eCommerce | Post & Parcel | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Express | Freight 1 | Supply Chain 1 | Solutions | Germany | Group Functions | Consolidation 1, 2 | Group 1 | |||||||||
| H 1 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 |
| External revenue | 8,483 | 11,204 | 7,235 | 9,358 | 5,926 | 6,501 | 2,094 | 2,824 | 7,624 | 8,424 | 39 | 22 | 0 | 0 | 31,401 | 38,333 |
| Internal revenue | 184 | 247 | 486 | 629 | 39 | 55 | 64 | 64 | 213 | 295 | 753 | 872 | –1,739 | –2,162 | 0 | 0 |
| Total revenue | 8,667 | 11,451 | 7,721 | 9,987 | 5,965 | 6,556 | 2,158 | 2,888 | 7,837 | 8,719 | 792 | 894 | –1,739 | –2,162 | 31,401 | 38,333 |
| Profit / loss from operating activities (EBIT) | 958 | 2,138 | 264 | 528 | 138 | 365 | 7 | 233 | 598 | 871 | – 461 | –139 | 0 | –2 | 1,504 | 3,994 |
| of which net income / loss from investments accounted for using the equity method |
1 | 0 | 0 | 0 | 2 | 1 | –35 | 0 | 0 | 0 | 0 | 42 | 0 | 1 | –32 | 44 |
| Segment assets 3 | 16,263 | 17,009 | 8,901 | 9,953 | 7,889 | 8,380 | 1,878 | 1,886 | 6,188 | 6,301 | 5,267 | 5,517 | – 80 | – 81 | 46,306 | 48,965 |
| of which investments accounted for using the equity method |
24 | 8 | 19 | 19 | 14 | 16 | 0 | 0 | 0 | 0 | 17 | 77 | –1 | 0 | 73 | 120 |
| Segment liabilities 3 | 4,224 | 4,462 | 3,296 | 3,872 | 2,912 | 2,859 | 717 | 769 | 2,716 | 2,842 | 1,567 | 1,655 | – 62 | – 68 | 15,370 | 16,391 |
| Net segment assets / liabilities 3 | 12,039 | 12,547 | 5,605 | 6,081 | 4,977 | 5,521 | 1,161 | 1,117 | 3,472 | 3,459 | 3,700 | 3,862 | –18 | –13 | 30,936 | 32,574 |
| Capex (assets acquired) | 403 | 626 | 40 | 50 | 169 | 203 | 26 | 61 | 163 | 266 | 134 | 171 | 0 | 0 | 935 | 1,377 |
| Capex (right-of-use assets) | 507 | 488 | 89 | 86 | 498 | 311 | 86 | 61 | 2 | 6 | 204 | 421 | 0 | 0 | 1,386 | 1,373 |
| Total capex | 910 | 1,114 | 129 | 136 | 667 | 514 | 112 | 122 | 165 | 272 | 338 | 592 | 0 | 0 | 2,321 | 2,750 |
| Depreciation and amortisation | 693 | 736 | 125 | 119 | 429 | 416 | 80 | 84 | 153 | 164 | 398 | 364 | 0 | 0 | 1,878 | 1,883 |
| Impairment losses | 0 | 0 | 0 | 0 | 60 | 0 | 5 | 0 | 0 | 0 | 20 | 0 | 0 | 0 | 85 | 0 |
| Total depreciation, amortisation and impairment losses |
693 | 736 | 125 | 119 | 489 | 416 | 85 | 84 | 153 | 164 | 418 | 364 | 0 | 0 | 1,963 | 1,883 |
| Other non-cash income (–) and expenses (+) | 208 | 253 | 47 | 83 | 102 | 80 | 50 | 1 | 183 | 140 | 113 | –17 | 0 | 0 | 703 | 540 |
| Employees 4 | 97,757 | 106,120 | 42,713 | 41,677 | 157,368 | 165,596 | 29,401 | 31,469 | 155,663 | 163,075 | 12,724 | 12,419 | –1 | 0 | 495,625 | 520,356 |
1 Prior-year figures adjusted, note 4. 2 Including rounding. 3 As at 31 December 2020 and 30 June 2021. 4 Average FTEs.
| € m | Global Forwarding, | eCommerce | Post & Parcel | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Express | Freight 1 | Supply Chain 1 | Solutions | Germany | Group Functions | Consolidation 1, 2 | Group 1 | |||||||||
| Q 2 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 |
| External revenue | 4,424 | 5,824 | 3,887 | 4,928 | 2,718 | 3,287 | 1,129 | 1,403 | 3,765 | 4,022 | 14 | 9 | 0 | 0 | 15,937 | 19,473 |
| Internal revenue | 93 | 128 | 252 | 307 | 15 | 28 | 33 | 31 | 113 | 142 | 409 | 450 | – 915 | –1,086 | 0 | 0 |
| Total revenue | 4,517 | 5,952 | 4,139 | 5,235 | 2,733 | 3,315 | 1,162 | 1,434 | 3,878 | 4,164 | 423 | 459 | – 915 | –1,086 | 15,937 | 19,473 |
| Profit / loss from operating activities (EBIT) | 565 | 1,177 | 190 | 312 | 33 | 198 | 1 | 116 | 264 | 315 | –141 | –34 | 0 | –1 | 912 | 2,083 |
| of which net income / loss from investments | ||||||||||||||||
| accounted for using the equity method | 0 | 0 | 0 | 0 | 1 | 1 | –33 | 0 | 0 | 0 | 1 | 42 | 0 | 1 | –31 | 44 |
| Capex (assets acquired) | 230 | 338 | 19 | 29 | 73 | 117 | 15 | 42 | 91 | 147 | 53 | 120 | 1 | 1 | 482 | 794 |
| Capex (right-of-use assets) | 130 | 279 | 36 | 32 | 190 | 153 | 51 | 40 | 0 | 0 | 141 | 340 | 0 | –1 | 548 | 843 |
| Total capex | 360 | 617 | 55 | 61 | 263 | 270 | 66 | 82 | 91 | 147 | 194 | 460 | 1 | 0 | 1,030 | 1,637 |
| Depreciation and amortisation | 348 | 373 | 63 | 59 | 198 | 210 | 38 | 42 | 80 | 83 | 146 | 185 | 0 | 1 | 873 | 953 |
| Impairment losses | 0 | 0 | 0 | 0 | 60 | 0 | 2 | 0 | 0 | 0 | 7 | 0 | 0 | 0 | 69 | 0 |
| Total depreciation, amortisation and | ||||||||||||||||
| impairment losses | 348 | 373 | 63 | 59 | 258 | 210 | 40 | 42 | 80 | 83 | 153 | 185 | 0 | 1 | 942 | 953 |
| Other non-cash income (–) and expenses (+) | 101 | 115 | 19 | 45 | 50 | 35 | 44 | 4 | 100 | 61 | 55 | – 46 | 0 | –1 | 369 | 213 |
1 Prior-year figures adjusted, note 4. 2 Including rounding.
| € m | Europe | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Germany | (excluding Germany) 1 | Americas | Asia Pacific 1 | Other regions | Group 1 | |||||||
| H 1 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 |
| External revenue | 9,509 | 10,627 | 8,903 | 11,133 | 5,993 | 7,801 | 5,681 | 7,254 | 1,315 | 1,518 | 31,401 | 38,333 |
| Non-current assets 2 | 10,093 | 10,340 | 10,526 | 10,760 | 7,782 | 8,103 | 4,817 | 5,023 | 599 | 619 | 33,817 | 34,845 |
| Capex | 622 | 966 | 536 | 656 | 815 | 786 | 297 | 274 | 51 | 68 | 2,321 | 2,750 |
| Q 2 | ||||||||||||
| External revenue | 4,672 | 5,155 | 4,379 | 5,741 | 3,159 | 4,011 | 3,084 | 3,781 | 643 | 785 | 15,937 | 19,473 |
| Total capex | 366 | 671 | 191 | 341 | 323 | 446 | 125 | 144 | 25 | 35 | 1,030 | 1,637 |
1 Prior-year figures adjusted, note 4. 2 As at 31 December 2020 and 30 June 2021.
| € m | ||
|---|---|---|
| H 1 2020 | H 1 2021 | |
| Total income of reported segments 1 | 1,965 | 4,135 |
| Group Functions | – 461 | –139 |
| Reconciliation to Group / Consolidation 1 | 0 | –2 |
| Profit from operating activities (EBIT) | 1,504 | 3,994 |
| Net finance costs | –306 | –319 |
| Profit before income taxes | 1,198 | 3,675 |
| Income taxes | –288 | –1,029 |
| Consolidated net profit for the period | 910 | 2,646 |
1 Prior-year figures adjusted, note 4.
| € m | |||||
|---|---|---|---|---|---|
| Class | Carrying amount |
Fair value | Level 1 1 | Level 2 2 | Level 3 3 |
| 30 June 2021 | |||||
| Non-current financial assets | 834 | 762 | 305 | 457 | 0 |
| Assets measured at amortised cost 4 | 507 | 435 | 0 | 435 | 0 |
| Financial assets measured at fair value | 327 | 327 | 305 | 22 | 0 |
| Current financial assets | 1,519 | 1,358 | 1,320 | 38 | 0 |
| Assets measured at amortised cost 5 | 161 | n. a. | n. a. | n. a. | n. a. |
| Financial assets measured at fair value | 1,358 | 1,358 | 1,320 | 38 | 0 |
| Non-current financial liabilities | 15,720 | 7,428 | 6,792 | 636 | 0 |
| Liabilities measured at amortised cost 4 | 15,720 | 7,428 | 6,792 | 636 | 0 |
| Financial liabilities measured at fair value | 0 | 0 | 0 | 0 | 0 |
| Current financial liabilities | 3,477 | 13 | 0 | 13 | 0 |
| Liabilities measured at amortised cost 5 | 3,464 | n. a. | n. a. | n. a. | n. a. |
| Financial liabilities measured at fair value | 13 | 13 | 0 | 13 | 0 |
| 31 December 2020 | |||||
| Non-current financial assets | 746 | 672 | 279 | 393 | 0 |
| Assets measured at amortised cost 4 | 466 | 392 | 0 | 392 | 0 |
| Financial assets measured at fair value | 280 | 280 | 279 | 1 | 0 |
| Current financial assets | 1,315 | 1,234 | 1,211 | 23 | 0 |
| Assets measured at amortised cost 5 | 81 | n. a. | n. a. | n. a. | n. a. |
| Financial assets measured at fair value | 1,234 | 1,234 | 1,211 | 23 | 0 |
| Non-current financial liabilities | 15,851 | 7,823 | 7,268 | 555 | 0 |
| Liabilities measured at amortised cost 4 | 15,850 | 7,822 | 7,268 | 554 | 0 |
| Financial liabilities measured at fair value | 1 | 1 | 0 | 1 | 0 |
| Current financial liabilities | 3,247 | 53 | 0 | 53 | 0 |
| Liabilities measured at amortised cost 5 | 3,194 | n. a. | n. a. | n. a. | n. a. |
| Financial liabilities measured at fair value | 53 | 53 | 0 | 53 | 0 |
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 The carrying amount also includes lease receivables of €87 million (31 December 2020: €81 million) and lease liabilities of €8,926 million (31 December 2020: €8,638 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).
The above table 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 underIFRS 7.29a,the disclosures do notinclude trade receivables, cash and cash equivalents or other current assets and liabilities because their carrying amounts are a reasonable approximation of theirfair 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, interestrates 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.
The Group's contingentliabilities and other financial obligations, such as purchase obligations, have not changed significantly compared with 31 December 2020, after adjustment for the investments in the aircraft fleet, note 12.
There were no significant changes in related party disclosures as against 31 December 2020.
In July 2021, the Board of Management resolved that the Deutsche Post DHL Group would pay a special bonus of €300 per employee (FTE) to its workforce of approximately 550,000 in the fourth quarter of 2021 as an acknowledgement of their achievements during the pandemic.
Beyond that, there were no reportable events after the reporting date.
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the 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 2021
Deutsche Post AG The Board of Management
Dr Frank Appel Ken Allen
Oscar de Bok Melanie Kreis
Dr Tobias Meyer Dr Thomas Ogilvie
John Pearson Tim Scharwath
To Deutsche Post AG, Bonn
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 2021 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 reportin accordance withGerman generally accepted standards forthe 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 ofthe 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 oftheGerman 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 ofthe German Securities Trading Act applicable to interim group managementreports.
Düsseldorf, 4 August 2021
PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft
Dietmar Prümm Verena Heineke Wirtschaftsprüfer Wirtschaftsprüferin (German Public Auditor) (German Public Auditor)
CONTACTS
Revised dates and information regarding live webcasts can be found on our Reporting hub.
This Interim Report contains forward-looking statements. Forward-looking statements are not historical facts. They also include statements concerning assumptions and expectations. These statements are based upon current plans, estimates and projections, and the information available to Deutsche Post AG at the time this Interim Report 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 "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 Interim Report. Deutsche Post AG undertakes no obligation to update the forward-looking statements contained in this Interim 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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