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Deutsche Post AG

Quarterly Report May 18, 2021

111_10-q_2021-05-18_a6aabc74-6265-4097-b892-39e35f1fb382.pdf

Quarterly Report

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QUARTERLY STATEMENT AS AT 31 MARCH 2021

2 BUSINESS PERFORMANCE

9 SELECTED FINANCIAL INFORMATION

Selected key figures

Q 1 2020 Q 1 2021 + / – %
Revenue € m 15,464 18,860 22.0
Profit from operating activities (EBIT) € m 592 1,911 >100
Return on sales 1 % 3.8 10.1
EBIT after asset charge (EAC) € m – 80 1,236 >100
Consolidated net profit for the period 2 € m 301 1,190 >100
Free cash flow € m – 409 1,183 >100
Net debt 3 € m 12,928 11,825 – 8.5
Earnings per share 4 0.24 0.96 >100
Number of employees 5 540,841 565,053 4.5

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

Record first quarter: Significant earnings growth and robust free cash flow thanks to continued high B2C shipment volumes and B2B recovery. Robust pace of growth continues in e-commerce worldwide, global economy enters recovery phase. Forecast upgraded further.

Organisational changes

On 1  January  2021, the Corporate Incubations board department was discontinued. No other material changes were made to the Group's organisational structure.

Revenue, earnings and financial position

Portfolio unchanged

There were no material changes in our portfolio in the reporting period.

Consolidated revenue up significantly

In the first quarter of 2021, consolidated revenue rose substantially, by 22.0 %, or €3,396 million, to €18,860 million. All divisions and regions contributed to this growth. Negative currency effects of €587 million were recorded.

At €414 million, other operating income was at the prior-year level (€422 million).

Materials expense markedly higher

Materials expense rose sharply by €1,896 million to €9,583 million due to factors mainly including the €1,784 million increase in transport costs. Staff costs amounted to €5,838 million, up €310 million from the prior year, largely on account of the higher headcount. At €930 million, depreciation, amortisation and impairment losses were down €91 million from the prior year, which had included write-downs from the reorganisation of our StreetScooter activities.Other operating expenses totalled €1,049 million, slightly under the figure in the prior-year quarter (€1,077 million).

Consolidated EBIT more than tripled

In the first quarter of 2021, consolidated EBIT stood at €1,911 million, up significantly (by 222.8 %) over the previous year's level (€592 million), which included negative effects in the amount of €234 million for StreetScooter. At €–154 million, net finance costs were on par with the previous year (€–151 million). Profit before income taxes climbed by €1,316 million to €1,757 million. As a result, income taxes were up €386 million to €492 million, driven by factors including the tax rate, which rose from 24.0 % to 28.0 %.

Consolidated net profit for the period also up sharply

At €1,265 million, consolidated net profit in the first quarter of 2021 was well above the prior-year level (€335 million). Of this amount, €1,190 million was attributable to Deutsche Post AG shareholders and €75 million to non-controlling interest shareholders. Basic earnings per share were up considerably from €0.24 to €0.96, and diluted earnings per share from €0.24 to €0.94.

EBIT after asset charge (EAC) improves substantially

In the first quarter of 2021, EAC climbed sharply from €–80 million to €1,236 million, mainly as a result of increased profitability. The imputed asset charge remained mostly stable year-on-year, with investments in property, plant and equipment being offset by a decline in net working capital and higher provisions.

EBIT after asset charge (EAC)

EAC – 80 1,236 >100
Asset charge – 672 – 675 – 0.4
EBIT 592 1,911 >100
Q 1 2020 Q 1 2021 + / – %
€ m

Liquidity remains very solid

The FFO to debt performance metric increased considerably in the first quarter of 2021 compared with 31 December 2020. The increase in funds from operations was largely the result of higher operating cash flow before changes in working capital. Reported financial liabilities declined, chiefly due to the repayment of a bond. This was offset in part by higher amounts due to banks and higher lease liabilities. The adjustment for pensions decreased significantly on account of the sharp reduction in pension obligations resulting from changes in discount rates. Surplus cash and near-cash investments increased, due primarily to very good free cash flow. On 31 March 2021, the Group had cash and cash equivalents of €5.1 billion. In view of this solid liquidity, the syndicated credit facility with a total volume of €2 billion was not drawn down during the reporting period.

FFO to debt

€ m
1 Apr.
1 Jan. to 2020 to
31 Dec. 31 Mar.
2020 2021
Operating cash flow before changes
in working capital 8,103 9,179
Interest received 67 64
Interest paid 556 549
Adjustment for pensions 97 89
Funds from operations, FFO 7,711 8,783
Reported financial liabilities 1 19,098 18,926
Financial liabilities at fair value
through profit or loss 1 54 22
Adjustment for pensions 1 5,826 4,338
Surplus cash and near-cash
investments 1, 2 4,350 4,945
Debt 20,520 18,297
FFO to debt (%) 37.6 48.0

1 As at 31 December 2020 and 31 March 2021, respectively.

2 Reported cash and cash equivalents and investment funds callable at sight, less cash needed for operations.

Capital expenditure for assets acquired above prior-year level

Investments in property, plant and equipment and intangible assets acquired (not including goodwill) amounted to €583 million in the first quarter of 2021 (previous year: €453 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 eight additional 777 freighters.

Operating cash flow more than triples

In the first quarter of 2021, net cash from operating activities was up sharply from the prior-year period, by 232 % from €750 million to €2,490 million. The main driver of this improvement was the steep jump in EBIT. Income taxes paid rose from €168 million to €273 million. At €94 million, the cash outflow from changes in working capital was €664 million lower than in the prior-year period, due primarily to an increase in liabilities and other items compared with the prior-year period.

Net cash used in investing activities rose by €265 million to €806 million. We increased our investments in property, plant and equipment and intangible assets by €107 million to €704 million. Moreover, we stepped up our investments in money market funds. Cash paid for current financial assets amounted to €162 million. The figure for the prior-year quarterincluded cash received of €9 million.

Due to the clear increase in EBIT, free cash flow also improved greatly, from €–409 million to €1,183 million. This is remarkable considering the fact that free cash flow has in the past generally been in negative territory in the first quarter.

Calculation of free cash flow

€ m
Q 1 2020 Q 1 2021
Net cash from operating activities 750 2,490
Sale of property, plant and equipment
and intangible assets
26 37
Acquisition of property, plant and
equipment and intangible assets
– 597 –704
Cash outflow from change in property,
plant and equipment and intangible
assets
– 571 – 667
Disposals of subsidiaries and other
business units
0 0
Disposals of investments accounted for
using the equity method and other
investments
0 0
Acquisition of subsidiaries and other
business units
0 0
Acquisition of investments accounted
for using the equity method and other
investments
– 5 –2
Cash outflow from divestitures /
acquisitions
– 5 –2
Proceeds from lease receivables 6 7
Repayment of lease liabilities – 482 – 542
Interest on lease liabilities –102 – 94
Cash outflow for leases – 578 – 629
Interest received 18 15
Interest paid –23 –24
Net interest paid – 5 – 9
Free cash flow – 409 1,183

Net cash used in financing activities was up by €651 million to €1,106 million. In January 2021, we repaid a bond in the amount of €750 million.

Cash and cash equivalents rose from €4,482 million as at 31 December 2020 to €5,113 million.

Consolidated total assets up significantly

The Group's total assets amounted to €58,271 million as at 31 March 2021, up from the level at 31 December 2020 (€55,307 million).

Non-current assets rose by €847 million to €37,893 million. Intangible assets grew by €199 million to €11,857 million, mainly due to an increase in goodwill resulting from positive currency effects. Property, plant and equipment was up from €22,007 million to €22,382 million, with investments and positive currency effects exceeding disposals and depreciation, amortisation and impairment losses. Actuarial gains gave pension assets a boost and contributed to an increase in other non-current assets. Clear revenue growth in the first quarter had a marked effect on current assets: Trade receivables rose by €802 million to €9,787 million and cash and cash equivalents increased by €631 million to €5,113 million. Other current assets also rose sharply from €2,815 million to €3,216 million. This figure includes the deferred expense of €260 million at the reporting date that was recognised for the prepaid annual contribution to civil servant pensions to Bundesanstalt für Post und Telekommunikation (German federal post and telecommunications agency).

At €16,791 million, equity attributable to Deutsche Post AG shareholders was much higher than at 31 December 2020 (€13,777 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 €1,081 million to €4,754 million. Financial liabilities dropped slightly from

€19,098 million to €18,926 million for reasons including our early repayment of a bond.Other currentliabilities were up, from €5,135 million to €6,046 million, due primarily to an increase in liabilities to employees, such as holiday entitlements.

Net debt drops to €11,825 million

Our net debt decreased from €12,928 million as at 31 December 2020to€11,825 millionas at 31 March 2021,mainly on account of the increase in cash and cash equivalents.

Net debt

€ m
31 Dec. 31 March
2020 2021
Non-current financial liabilities 15,833 15,859
Current financial liabilities 2,893 2,639
Financial liabilities 1 18,726 18,498
Cash and cash equivalents 4,482 5,113
Current financial assets 1,315 1,560
Positive fair value of non-current
financial derivatives 2
1 0
Financial assets 5,798 6,673
Net debt 12,928 11,825

1 Less operating financial liabilities.

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

Divisions

EXPRESS

Key figures, Express

€ m
Q 1 2020 Q 1 2021 + / – %
Revenue 4,150 5,499 32.5
of which Europe 1,875 2,383 27.1
Americas 909 1,135 24.9
Asia Pacific 1,462 1,987 35.9
MEA
(Middle East and Africa)
314 333 6.1
Consolidation / Other – 410 –339 17.3
Profit from operating activities
(EBIT)
393 961 >100
Return on sales (%) 1 9.5 17.5
Operating cash flow 683 1,441 >100

1 EBIT / revenue.

International business posts strong revenue growth

Revenue in the division increased by 32.5 % to €5,499 million in the first quarter of 2021. This includes negative currency effects of €231 million. Excluding these effects, the increase in revenue was 38.1 %. 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 was up by 37.3 %.

Per-day revenues and shipment volumes continued to increase substantially in both of our product lines during the reporting period.

Express: revenue by product

€ m per day 1
Q 1 2020 Q 1 2021 + / – %
Time Definite International (TDI) 49.4 68.1 37.9
Time Definite Domestic (TDD) 4.5 6.0 33.3

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 2020 Q 1 2021 + / – %
Time Definite International (TDI) 954 1,205 26.3
Time Definite Domestic (TDD) 533 694 30.2

Double-digit growth rates in the Europe region

Revenue in the Europe region increased by 27.1 % to €2,383 million in the first quarter of 2021. That figure includes foreign currency losses of €34 million; growth excluding currency effects was 28.9 %. In the TDI product line, revenues per day increased by 34.0 %. Per-day TDI shipment volumes improved by 26.4 %.

TDI shipments up sharply in the Americas region

In the Americas region, revenue increased by 24.9 % to €1,135 million in the first quarter of 2021. Excluding currency losses of €83 million,revenue rose by 34.0 %. Per-day TDI volumes were up a strong 33.3 % overthe previous year. Per-day revenues grew by 41.7 %.

Operating business in the Asia Pacific region registers growth

In the Asia Pacific region, revenue improved by 35.9 % to €1,987 million in the first quarter of 2021. Excluding currency losses of €60 million, revenue rose by 40.0 %. In the TDI product line, per-day revenues rose by 42.8 % and per-day volumes were up 25.3 %.

MEA region also registers revenue growth

Revenue in the MEA (Middle East and Africa) region improved by 6.1 % to €333 million in the reporting period. Excluding currency losses of €26 million, revenue rose by 14.3 %. Per-day TDI revenues increased by 24.2 % and per-day volumes rose 22.3 %.

EBIT up sharply year-on-year

Division EBIT surged 144.5 % in the first quarter of 2021 to reach €961 million. Return on sales also climbed, from 9.5 % in the previous year to 17.5 % in the reporting period.

GLOBAL FORWARDING, FREIGHT

Key figures, Global Forwarding, Freight

€ m
Q 1 2020
adjusted 1
Q 1 2021 + / – %
Revenue 3,582 4,752 32.7
of which Global Forwarding 2,500 3,590 43.6
Freight 1,111 1,193 7.4
Consolidation / Other –29 –31 – 6.9
Profit from operating activities
(EBIT)
74 216 >100
Return on sales (%) 2 2.1 4.5
Operating cash flow – 92 112 >100

1 Prior-year figures adjusted due to reclassifications.

2 EBIT / revenue.

Significant improvement in revenue

Revenue in the division was up sharply by 32.7 % to €4,752 million. Excluding foreign currency losses of €159 million, revenue was up by 37.1 % over the prior-year quarter. In the Global Forwarding business unit, revenue rose by 43.6 % to €3,590 million. Excluding foreign currency losses of €160 million, the increase was 50.0 %. The business unit's gross profit was up from the previous year, by 19.1 % to €699 million.

Growth in air and ocean freight volumes

We registered growth of 18.2 % in air freight volumes in the first quarter of 2021, due mainly to increased demand from Asia and theUnited States. Atthe same time, available market capacity remained at a low level on account of the limitations on passenger flights. First-quarter air freight revenues therefore rose by 59.3 %. Gross profit improved by 27.0 %.

Ocean freight volumes were up 8.8 % year-on-year. Revenues from ocean freight recovered well from the previous year, growing 49.2 % to €1,255 million. At €215 million, the gross profit generated by ocean freight exceeded the prior-year figure by 45.3 %. The market's sharply curtailed availability offree freight capacity was a majorfactorin the performance of this business.

Global Forwarding: revenue

€ m
Q 1 2020 Q 1 2021 + / – %
adjusted 1
Air freight 1,155 1,840 59.3
Ocean freight 841 1,255 49.2
Other 504 495 –1.8
Total 2,500 3,590 43.6

1 Prior-year figures adjusted due to reclassifications.

Global Forwarding: volumes

Thousands
Q 1 2020 Q 1 2021 + / – %
adjusted 1
Air freight exports tonnes 418 494 18.2
Ocean freight TEU 2 702 764 8.8

1 Prior-year figures adjusted due to reclassifications.

2 Twenty-foot equivalent units.

Revenue increase in European overland transport business

Revenue in the Freight business unit increased by 7.4 % to €1,193 million in the first quarter of 2021. The 10.8 % volume growth was driven in part by B2C business in Scandinavia. The business unit's gross profit also rose, by 9.6 % to €309 million.

EBIT up substantially year-on-year

The division's EBIT grew from €74 million to €216 million in the first quarter of 2021. Proactive capacity planning, optimised procurement and strict cost management played a role here, as did higher volumes in all areas. With the EBIT margin at 4.5 %, EBIT amounts to 21.4 % of gross profit.

SUPPLY CHAIN

Key figures, Supply Chain

€ m
Q 1 2020
adjusted 1
Q 1 2021 + / – %
Revenue 3,232 3,241 0.3
of which EMEA (Europe, Middle
East and Africa)
1,643 1,533 – 6.7
Americas 1,144 1,226 7.2
Asia Pacific 448 489 9.2
Consolidation / Other –3 –7 <–100
Profit from operating activities
(EBIT)
105 167 59.0
Return on sales (%) 2 3.2 5.2
Operating cash flow –29 241 >100

1 Prior-year figures adjusted due to reclassifications.

2 EBIT / revenue.

Revenue growth at a weaker pace due to negative currency effects

In the first quarter of 2021, revenue in the division was €3,241 million and therefore slightly above the prior year's figure. Positive business performance in nearly all regions mitigated negative currency effects of €144 million. The Life Sciences & Healthcare and Technology sectors achieved the highest growth.

The revenue increase was driven by new business growth, a consistently high contract renewal rate, eCommerce business growth and a recovery in B2B business volumes across most regions.

Supply Chain: revenue by sector and region, Q 1 2021

Total revenue: €3,241 million

of which Retail 27 %
Consumer 22 %
Auto-mobility 15 %
Technology 14 %
Life Sciences & Healthcare 11 %
Engineering & Manufacturing 6 %
Others 5 %
of which Europe / Middle East / Africa / Consolidation 47 %
Americas 38 %
Asia Pacific 15 %

Record new business worth around €313 million secured

In the first quarter of 2021, the division concluded additional contracts worth around €313 million in annualised revenue with both new and existing customers. The Life Sciences & Healthcare, Consumer and Retail sectors accounted for the majority of the new business, with a significant portion attributable to e-commerce as well. The annualised contract renewal rate remained at a consistently high level.

Earnings growth driven by positive revenue performance and higher productivity

EBIT in the division increased to €167 million (previous year: €105 million) in the first quarter of 2021, following both the good revenue development and the improved productivity trend established during the fourth quarter of the prior year. This was also supported by continued investment in digitalisation. The EBIT margin was 5.2 %.

ECOMMERCE SOLUTIONS

Key figures, eCommerce Solutions

€ m
Q 1 2020 Q 1 2021 + / – %
Revenue 996 1,454 46.0
of which Americas 297 485 63.3
Europe 570 794 39.3
Asia 131 177 35.1
Other / Consolidation –2 –2 0.0
Profit from operating activities
(EBIT) 6 117 >100
Return on sales (%) 1 0.6 8.0
Operating cash flow 85 230 >100

1 EBIT / revenue.

First-quarter revenue increases

The division generated revenue of €1,454 million in the first quarter of 2021, up 46.0 % on the prior-year figure. The robust increase in revenue in allregions is attributable to higher volumes in the B2C business. Excluding foreign currency losses of €58 million, revenue was up by a total of 51.8 % year-on-year.

Significant year-on-year increase in EBIT

EBIT in the division improved considerably to €117 million (previous year: €6 million) in the first quarter of 2021. This was mainly due to higherrevenues in the B2C business and strict cost management. The EBIT margin was 8.0 %.

POST & PARCEL GERMANY

Key figures, Post & Parcel Germany

€ m
Q 1 2020 Q 1 2021 + / – %
Revenue 3,959 4,555 15.1
of which Post ­Germany 2,125 2,034 – 4.3
Parcel ­Germany 1,258 1,820 44.7
International 540 675 25.0
Other / Consolidation 36 26 –27.8
Profit from operating activities
(EBIT) 334 556 66.5
Return on sales (%) 1 8.4 12.2
Operating cash flow 229 611 >100

1 EBIT / revenue.

Revenue surpasses prior-year level

In the first quarter of 2021, revenue in the division was €4,555 million, 15.1 % above the prior-year figure, although there were 1.0 fewer working days than in the previous year. This positive development was driven largely by the continued strong growth in the German parcel business. Ongoing restrictions on brick-and-mortar retail and the resulting shift to online shopping were major contributors to that trend.

Varying business unit performance

As expected,revenue and volumes in the Mail Communication business remained in decline on the whole, due mainly to electronic substitution but also because of the fewer working days in the quarter. Small-format goods shipments, an addition to our parcel portfolio from our mail network, are on the rise, growing sharply due to online retail.

Dialogue Marketing saw declines due to restrictions imposed as a result of the pandemic. The drop in revenues and cuts in advertising budgets since mid-March 2020 have led to reduced sales volumes of addressed and unaddressed promotional mailings.

Growth was maintained in the German parcel business: Revenue in the first quarter of 2021 exceeded that of the previous year by a healthy 44.7 %. Investments in the network, additional digital recipient solutions and the Packstation andPoststation expansion supportthis growth.

With respect to the cross-border transport of documents and goods, trends varied in the initial weeks of the year. Whereas the import business benefited both from growth in mail volumes, particularly from Asia and Europe, and from increases in parcel shipments, exports of goods and documents to the rest of Europe and the world saw a further decline in document deliveries. The number of shipments containing merchandise increased, especially in our European target markets.

Post & Parcel Germany: revenue

€ m
Q 1 2020 Q 1 2021 + / – %
Post ­Germany 2,125 2,034 – 4.3
of which Mail Communication 1,463 1,442 –1.4
Dialogue Marketing 483 413 –14.5
Other / Consolidation
(Post ­Germany)
179 179
Parcel ­Germany 1,258 1,820 44.7

Post & Parcel Germany: volumes

Mail items (millions)
Q 1 2020 Q 1 2021 + / – %
Post ­Germany 3,846 3,399 –11.6
of which Mail Communication 1,766 1,720 –2.6
Dialogue Marketing 1,834 1,538 –16.1
Parcel ­Germany 1 346 489 41.3

1 Without international shipments.

Significant EBIT improvement over prior year

EBIT in the division improved considerably by 66.5 % to €556 million in the first quarter 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 other areas, particularly Dialogue Marketing.

Changes in expected developments

Global economy recovering faster despite third pandemic wave

Global economic growth is picking up the pace faster than expected at the beginning of the year. In its forecast dated 15 April 2021, IHS Markit projected a 5.3 % increase in global economic activity in 2021, up from 4.4 %, driven by very large stimulus packages in the United States and the continued recovery in China.However, in Europe in particular, the upswing is still currently concentrated largely in manufacturing, because the service sector continues to feel the impact of measures taken to rein in the third wave of the pandemic. A general normalisation of economic activity in Europe is expected no earlierthan the third quarter, and then only if vaccination efforts proceed as planned. The global financial markets seem convinced, however, that

any additional economic setbacks in 2021 will be spared despite residual pandemic risks.

Ongoing business development is subject to a market environment characterised by structurally elevated B2C volumes throughoutthe networks and a robustrecovery in B2B volumes. The resulting strong momentum in earnings and cash flow in the first quarter of the current year has prompted the Group to upgrade its guidance for 2021 as well its medium-term targets as follows:

For the full year 2021, we now expect a consolidated EBIT of more than €6.7 billion. This increase in earnings against both the prior-year figure of €4.8 billion and the original full-year guidance of more than €5.6 billion is being driven predominantly by the DHL divisions, which we now expect to deliver an EBIT of more than €5.4 billion for the current financial year. The EBIT forecast for the Post & Parcel Germany division is now being raised to around €1.7 billion, while EBIT at Group Functions is expected to remain at around €–0.4 billion. Further, the outlook for the full year 2021 free cash flow is now being raised to more than €3.0 billion. This takes into account the upgraded guidance of around €3.8 billion for capital expenditure (excluding leases) planned for this year.

The increased earnings level is also reflected in the medium-term guidance. For the 2023 financial year, we now expect consolidated EBIT of more than €7 billion, compared to the original guidance of more than €6 billion. Cumulative free cash flow for the period 2021 to 2023 is now expected to be around €9 billion. For the same time frame, capital expenditure (excluding leases)is forecastto come in at around €11 billion.

Overall, the impact of COVID-19 now presents an opportunity with high significance for 2021. In subsequent years we continue to expect an opportunity as well as a risk of medium 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 of 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.

The Group's overall opportunity and risk situation did not otherwise change significantly during the first quarter of 2021 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.

INCOME STATEMENT

1 January to 31 March

€ m
2020 2021
Revenue 1 15,464 18,860
Other operating income 422 414
Changes in inventories and work performed and capitalised 20 37
Materials expense 1 –7,687 – 9,583
Staff costs – 5,528 – 5,838
Depreciation, amortisation and impairment losses –1,021 – 930
Other operating expenses –1,077 –1,049
Net income / loss from investments accounted for using the equity method –1 0
Profit from operating activities (EBIT) 592 1,911
Financial income 85 30
Finance costs –207 –178
Foreign currency losses –29 – 6
Net finance costs –151 –154
Profit before income taxes 441 1,757
Income taxes –106 – 492
Consolidated net profit for the period 335 1,265
attributable to ­Deutsche Post AG shareholders 301 1,190
attributable to non-controlling interests 34 75
Basic earnings per share (€) 0.24 0.96
Diluted earnings per share (€) 0.24 0.94

1 Prior-year figures adjusted, Segment reporting.

BALANCE SHEET

€ m
31 Dec. 2020 31 March 2021
ASSETS
Intangible assets 11,658 11,857
Property, plant and equipment 22,007 22,382
Investment property 12 10
Investments accounted for using the equity method 73 78
Non-current financial assets 746 781
Other non-current assets 160 574
Deferred tax assets 2,390 2,211
Non-current assets 37,046 37,893
Inventories 439 475
Current financial assets 1,315 1,560
Trade receivables 8,985 9,787
Other current assets 2,815 3,216
Income tax assets 209 208
Cash and cash equivalents 4,482 5,113
Assets held for sale 16 19
Current assets 18,261 20,378
TOTAL ASSETS 55,307 58,271
TOTAL EQUITY AND LIABILITIES 55,307 58,271
Current provisions and liabilities 17,389 18,202
Liabilities associated with assets held for sale 7 8
Income tax liabilities 611 650
Other current liabilities 5,135 6,046
Trade payables 7,309 7,327
Current financial liabilities 3,247 3,049
Current provisions 1,080 1,122
Non-current provisions and liabilities 23,840 22,903
Other non-current liabilities 328 322
Non-current financial liabilities 15,851 15,877
Other non-current provisions 1,790 1,877
Deferred tax liabilities 36 73
Provisions for pensions and similar obligations 5,835 4,754
Equity 14,078 17,166
Non-controlling interests 301 375
Equity attributable to ­Deutsche Post AG shareholders 13,777 16,791
Retained earnings 10,685 13,146
Other reserves –1,666 –1,180
Capital reserves 3,519 3,588
EQUITY AND LIABILITIES
Issued capital
1,239 1,237
31 Dec. 2020 31 March 2021

CASH FLOW STATEMENT

1 January to 31 March

€ m
2020 2021
Consolidated net profit for the period 335 1,265
Income taxes 106 492
Net finance costs 151 154
Profit from operating activities (EBIT) 592 1,911
Depreciation, amortisation and impairment losses 1,021 930
Net costs / net income from disposal of non-current assets 26 2
Non-cash income and expense 70 21
Change in provisions –26 9
Change in other non-current assets and liabilities –7 –16
Dividend received 0 0
Income taxes paid –168 –273
Net cash from operating activities before changes in working capital 1,508 2,584
Changes in working capital
Inventories 84 –28
Receivables and other current assets – 627 –1,039
Liabilities and other items –215 973
Net cash from operating activities 750 2,490
Subsidiaries and other business units 0 0
Property, plant and equipment and intangible assets 26 37
Investments accounted for using the equity method and other investments 0 0
Other non-current financial assets 13 12
Proceeds from disposal of non-current assets 39 49
Subsidiaries and other business units 0 0
Property, plant and equipment and intangible assets – 597 –704
Investments accounted for using the equity method and other investments – 5 –2
Other non-current financial assets – 5 –2
Cash paid to acquire non-current assets – 607 –708
Interest received 18 15
Current financial assets 9 –162
Net cash used in investing activities – 541 – 806
Cash and cash equivalents at end of reporting period 2,578 5,113
Cash and cash equivalents at beginning of reporting period 2,862 4,482
Changes in cash and cash equivalents associated with assets held for sale 0 0
Effect of changes in exchange rates on cash and cash equivalents –38 53
Net change in cash and cash equivalents –246 578
Net cash used in financing activities – 455 –1,106
Interest paid –125 –118
Purchase of treasury shares –30 –107
Dividend paid to non-controlling interest shareholders –7 –12
Cash paid for transactions with non-controlling interests – 4 0
Other financing activities 1 4
Change in current financial liabilities 42 428
Repayments of non-current financial liabilities – 488 –1,301
Proceeds from issuance of non-current financial liabilities 156 0
2020 2021

Segments by division

1 January to 31 March

€ m Global Forwarding, eCommerce Post & Parcel
Express Freight 1 Supply Chain 1 Solutions Germany Group Functions Consolidation 1, 2 Group 1
2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021
External revenue 1 4,059 5,380 3,348 4,430 3,208 3,214 965 1,421 3,859 4,402 25 13 0 0 15,464 18,860
Internal revenue 91 119 234 322 24 27 31 33 100 153 344 422 – 824 –1,076 0 0
Total revenue 4,150 5,499 3,582 4,752 3,232 3,241 996 1,454 3,959 4,555 369 435 – 824 –1,076 15,464 18,860
Profit / loss from operating activities (EBIT) 393 961 74 216 105 167 6 117 334 556 –320 –105 0 –1 592 1,911
of which net income / loss from investments
accounted for using the equity method
1 0 0 0 1 0 –2 0 0 0 –1 0 0 0 –1 0
Segment assets 3 16,263 16,874 8,901 9,604 7,889 8,114 1,878 1,901 6,188 6,458 5,267 5,283 – 80 – 80 46,306 48,154
of which investments accounted for using
the equity method
24 26 19 20 14 15 0 0 0 0 17 17 –1 0 73 78
Segment liabilities 3 4,224 4,568 3,296 3,686 2,912 2,883 717 795 2,716 2,915 1,567 1,651 – 62 – 62 15,370 16,436
Net segment assets / liabilities 3 12,039 12,306 5,605 5,918 4,977 5,231 1,161 1,106 3,472 3,543 3,700 3,632 –18 –18 30,936 31,718
Capex (assets acquired) 173 288 21 21 96 86 11 19 72 119 81 51 –1 –1 453 583
Capex (right-of-use assets) 377 209 53 54 308 158 35 21 2 6 63 81 0 1 838 530
Total capex 550 497 74 75 404 244 46 40 74 125 144 132 –1 0 1,291 1,113
Depreciation and amortisation 345 363 62 60 231 206 42 42 73 81 252 179 0 –1 1,005 930
Impairment losses 0 0 0 0 0 0 3 0 0 0 13 0 0 0 16 0
Total depreciation, amortisation and
impairment losses
345 363 62 60 231 206 45 42 73 81 265 179 0 –1 1,021 930
Other non-cash income (–) and expenses (+) 107 138 28 38 52 45 6 –3 83 79 58 29 0 1 334 327
Employees 4 98,398 105,430 43,594 41,639 157,062 165,741 29,262 31,374 155,431 163,776 12,802 12,341 0 0 496,549 520,301

1 Prior-year figures adjusted. 2 Including rounding. 3 As at 31 December 2020 and 31 March 2021. 4 Average FTEs.

Adjustment of prior-period amounts

The Lead Logistics Provider (LLP) business which had, to date, been partially reported in theGlobal Forwarding, Freight segment has been included in the Supply Chain division since January 2021. The presentation ofrevenue and materials expense was standardised based on a reviewof certain customer contracts as part ofthis transition. The prior-period amounts were adjusted accordingly.

Reconciliation

€ m
Q 1 2020 Q 1 2021
Total income of reported segments 912 2,017
Group Functions –320 –105
Reconciliation to Group / Consolidation 0 –1
Profit from operating activities (EBIT) 592 1,911
Net finance costs –151 –154
Profit before income taxes 441 1,757
Income taxes –106 – 492
Consolidated net profit for the period 335 1,265

Issued capital and treasury shares

Changes in issued capital and treasury shares

€ 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 / 31 March 1,239 1,239
Treasury shares
Balance at 1 January –1 0
Purchase of treasury shares –2 –2
Issue / sale of treasury shares 3 0
Balance at 31 December / 31 March 0 –2
Total at 31 December / 31 March 1,239 1,237

Earnings per share

Basic earnings per share

Weighted average number of shares outstanding
Basic earnings per share
number
1,235,054,732
0.24
1,238,262,243
0.96
Consolidated net profit for the period attributable to ­Deutsche Post AG shareholders € m 301 1,190
Q 1 2020 Q 1 2021

Diluted earnings per share

Diluted earnings per share 0.24 0.94
Weighted average number of shares for diluted earnings number 1,256,558,547 1,268,482,902
Potentially dilutive shares number 21,503,815 30,220,659
Weighted average number of shares outstanding number 1,235,054,732 1,238,262,243
Adjusted consolidated net profit for the period attributable to ­Deutsche Post AG shareholders € m 303 1,192
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 301 1,190
Q 1 2020 Q 1 2021

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 5 May 2021.

The English version of the quarterly statement as at 31 March 2021 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 of 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 2020 financial year, with the exception of the new pronouncements required to be applied as at the beginning of the year. 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 statement. Deutsche Post AG assumes no obligation beyond the statutory requirements to update the forward-looking statements made in this statement. 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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