Quarterly Report • Nov 19, 2019
Quarterly Report
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| + / – % | ||||||
|---|---|---|---|---|---|---|
| €m | 44,624 | 46,385 | 3.9 | 14,849 | 15,552 | 4.7 |
| €m | 2,028 | 2,870 | 41.5 | 376 | 942 | >100 |
| % | 4.5 | 6.2 | – | 2.5 | 6.1 | – |
| €m | 207 | 914 | >100 | –245 | 277 | >100 |
| €m | 1,262 | 1,765 | 39.9 | 146 | 561 | >100 |
| €m | –248 | –296 | –19.4 | 143 | 507 | >100 |
| €m | 12,303 | 14,492 | 17.8 | – | – | – |
| € | 1.03 | 1.43 | 38.8 | 0.12 | 0.45 | >100 |
| 547,459 | 543,715 | – 0.7 | – | – | – | |
| 9 M 2018 | 9 M 2019 | + / – % | Q 3 2018 | Q 3 2019 |
1 EBIT/revenue.
2 After deduction of non-controlling interests.
3 Prior-period amount as at 31 December, for the calculation page 8 of the Interim Group Management Report.
4 Basic earnings per share.
5 Headcount at the end of the quarter, including trainees; prior-period number as at 31 December.
As announced at the end of June, John Gilbert resigned from the Board of Management with effect from 30 September 2019. Since 1 October 2019, the Supply Chain board department has been led by Oscar de Bok.
In September, the Supervisory Board extended Thomas Ogilvie's contract for five years until August 2025. He is the Labour Director and Board of Management member responsible for Human Resources and Corporate Incubations.
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 reportin this connection.
The pace of global economic growth has been weak at best since the beginning of 2019. Most recently, the renewed escalation of the trade conflict between the United States and China as well as the attacks on Saudi oil facilities have weighed on growth. Chinese economic expansion has also continued to slow.
Growth in the United States during the third quarter of 2019 was weaker compared with the previous year. The US Federal Reserve countered the emerging growth risks with two small interest rate cuts that lowered the key interest rate corridor to between 1.75 % and 2.00 %.
The eurozone maintained the growth pattern of prior quarters – robust fixed investment amid weaker consumer spending – although the pace of growth slackened. The European Central Bank (ECB) reacted to the weaker economic climate and cut its key interest rate to –0.50 %.
In Germany, foreign trade weighed on growth, whilst domestic demand, and consumer spending in particular, still grew solidly. These diverging trends in the German economy were reflected in business sentiment. Although the ifo German Business Climate Index edged up slightly in September, it remained below its longterm average.
In February, we completed the sale of our Supply Chain business in China, Hong Kong and Macao in return for a net payment of €653 million.
In the third quarter, we began offering an extended group of employees in Germany the option oftaking a lump-sum payment rather than receiving a lifetime pension under our occupational pension plan. This resulted in income of €106 million from the remeasurement of pension obligations, most of which was compensated forin restructuring the Post & Parcel Germany division.
As at 30 September 2019, restructuring expenses of €264 million net had been incurred for measures intended to improve earnings.
Beyond the sale of the Supply Chain business in China, our portfolio did not change significantly in the period under review.
| 9 M 2018 | 9 M 2019 | Q 3 2018 | Q 3 2019 | ||
|---|---|---|---|---|---|
| Revenue | € m | 44,624 | 46,385 | 14,849 | 15,552 |
| Profit from operating activities (EBIT) | € m | 2,028 | 2,870 | 376 | 942 |
| Return on sales 1 | % | 4.5 | 6.2 | 2.5 | 6.1 |
| EBIT after asset charge (EAC) | € m | 207 | 914 | –245 | 277 |
| Consolidated net profit for the period 2 | € m | 1,262 | 1,765 | 146 | 561 |
| Earnings per share 3 | € | 1.03 | 1.43 | 0.12 | 0.45 |
1 EBIT / revenue.
2 After deduction of non-controlling interests. 3 Basic earnings per share.
In the first nine months of 2019, consolidated revenue rose by €1,761 million to €46,385 million, for reasons including positive currency effects of €547 million. The proportion of revenue generated abroad increased from 69.5 % to 70.1 %. Revenue for the third quarter was up by €703 million to €15,552 million. It was also increased by currency effects of €240 million.
Above all, income of €439 million from the sale of the Supply Chain business in China drove up other operating income considerably to €1,787 million.
| 15,552 | € m |
|---|---|
| Q 3 2018 | Change |
| 14,849 | + 4.7 % |
year (€3,275 million). In the reporting period, this item included restructuring expenses in the Post & Parcel Germany, Supply Chain and eCommerce Solutions divisions, whilst in the previous year there was a negative effect from customer contracts.
In the first nine months of 2019, profit from operating activities (EBIT) rose 41.5 % to €2,870 million, well above the previous year's figure (€2,028 million). Higher interest expense on lease liabilities, amongst otherthings, caused net finance costs to grow from €–429 million to €–474 million. Profit before income taxes grew by €797 million to €2,396 million. Income taxes were up by €303 million to €527 million due to a higher tax rate, amongst other things.
| EBIT | Q 3 2019 € m |
|---|---|
| 942 |
| Change | Q 3 2018 |
|---|---|
| >100 % | 376 |
In addition to transport costs, currency effects above all increased materials expense from €23,025 million to €23,459 million. At €16,021 million, staff costs were up €559 million over the previous year's figure, due primarily to an increased headcount and the collective wage increase in Germany. The previous year's figure included expenses of €400 million for the early retirement programme in what is now the Post & Parcel Germany division. Depreciation, amortisation and impairment losses also greatly exceeded the previous year's level (€2,414 million) to reach €2,718 million, due in part to investments, which markedly increased leased property, plant and equipment. Other operating expenses totalled €3,293 million, up slightly from the previous
In the first nine months of 2019, consolidated net profit amounted to €1,869 million, significantly higher than the previous year's figure (€1,375 million). Of this amount, €1,765 million is attributable to Deutsche Post AG shareholders and €104 million to non-controlling interest shareholders. Basic earnings per share improved from €1.03 to €1.43 and diluted earnings per share from €1.01 to €1.41.
| € m | + / – % | |
|---|---|---|
| 46,385 | 3.9 • Currency effects increase figure by €547 million | |
| 1,787 | 35.5 • Includes income of €439 million from the sale of the Supply Chain business in China | |
| 23,459 | 1.9 • Currency effects increase figure by €402 million • Higher transport costs |
|
| 16,021 | 3.6 • Rise in headcount • Currency effects increase figure by €166 million • The prior-year figure included expenses of €400 million for the early retirement programme in the Post & Parcel Germany division. • The prior-year figure included income from the remeasurement of pension obligations totalling €108 million; this figure was €106 million in the reporting period. • Collective wage increase in Germany as at 1 October 2018 |
|
| 2,718 | 12.6 • Investment-related increase in leased property, plant and equipment | |
| 3,293 | 0.5 • Prior-year figure included a negative effect of €49 million from customer contracts • Include restructuring expenses of €134 million in the Post & Parcel Germany, Supply Chain and eCommerce Solutions divisions in the reporting period |
|
EAC rose from €207 million to €914 million in the first nine months of 2019. The increase was attributable to the significant rise in EBIT as well as a higher imputed asset charge, due in particular to investments in property, plant and equipment in the Express division.
| EAC | 207 | 914 | >100 |
|---|---|---|---|
| Asset charge | –1,821 | –1,956 | –7.4 |
| EBIT | 2,028 | 2,870 | 41.5 |
| 9 M 2018 | 9 M 2019 | + / – % | |
| € m |
| € m | ||||
|---|---|---|---|---|
| 9 M 2018 | 9 M 2019 | Q 3 2018 | Q 3 2019 | |
| Cash and cash equivalents as at 30 September | 2,228 | 2,230 | 2,228 | 2,230 |
| Change in cash and cash equivalents | – 829 | – 857 | 260 | – 6 |
| Net cash from operating activities | 3,144 | 3,386 | 1,421 | 1,869 |
| Net cash used in investing activities | –1,296 | –1,045 | –716 | –750 |
| Net cash used in financing activities | –2,677 | –3,198 | – 445 | –1,125 |
The principles and aims of our financial management as presented in the 2018 Annual Report beginning on page 43 remain valid and are pursued as part of our finance strategy.
The FFO to debt performance metric decreased in the first nine months of 2019 compared with the figure as at 31 December 2018 because debt increased. Reported financial liabilities increased, mainly as a result of an increase in short-term loans and higher lease liabilities. The adjustment for pensions rose due to an increase in pension obligations, despite the rise in plan assets. Surplus cash and near-cash investments declined, due primarily to the dividend paid for financial year 2018 and negative free cash flow recognised in the first nine months of the year. This line item contains the net proceeds of €653 million from the sale of the Supply Chain business in China and payments for the renewal of the Express intercontinental aircraft fleet totalling €988 million.
| € m | ||
|---|---|---|
| 1 Oct. | ||
| 1 Jan. to | 2018 to | |
| 31 Dec. | 30 Sept. | |
| 2018 | 2019 | |
| Operating cash flow before changes in working | ||
| capital | 6,079 | 6,026 |
| Interest received | 52 | 72 |
| Interest paid | 526 | 600 |
| Adjustment for pensions | 309 | 248 |
| Funds from operations, FFO | 5,914 | 5,746 |
| Reported financial liabilities 1 | 16,462 | 17,219 |
| Financial liabilities at fair value through | ||
| profit or loss 1 | 38 | 29 |
| Adjustment for pensions 1 | 4,110 | 6,145 |
| Surplus cash and near-cash investments 1, 2 | 2,683 | 1,053 |
| Debt | 17,851 | 22,282 |
| FFO to debt (%) | 33.1 | 25.8 |
1 As at 31 December 2018 and 30 September 2019, 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 2018 Annual Report on page 45. 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 September 2019, the Group had cash and cash equivalents of €2.2 billion.
Investments in acquired property, plant and equipment and intangible assets (notincluding goodwill) amounted to €2,572 million in the first nine months of 2019 (previous year: €1,703 million). Please refer to notes 10 and 15 for a breakdown of capex into asset classes and regions.
In the Post & Parcel Germany division, the largest capex portion was attributable to the expansion of our network.
Investments in the Express division related to buildings and technical equipment. Capital spending also focussed upon continuous maintenance and renewal of our aircraft fleet, including further advance payments for the renewal of the Express intercontinental aircraft fleet.
In the Global Forwarding, Freight division, we invested in warehouses, office buildings and IT.
In the Supply Chain division, the majority of funds were invested to support new business, mostly in the Americas and EMEA (Europe, Middle East and Africa).
In the eCommerce Solutions division, most of the capital expenditure was attributable to infrastructure projects in the Netherlands and Poland. Investments were also made in India.
Capital expenditure increased in the Corporate Functions division, where funds were invested in the vehicle fleet, IT equipment and expanding production of StreetScooter electric vehicles.
| Post & Parcel Germany adjusted 1 Express |
Global Forwarding, Freight |
eCommerce Solutions Corporate Supply Chain adjusted 1 Functions Consolidation 2 |
Group | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | |
| Capex (€ m) relating to assets acquired |
427 | 285 | 679 | 1,523 | 75 | 73 | 200 | 231 | 114 | 80 | 179 | 382 | 29 | –2 | 1,703 | 2,572 |
| Capex (€ m) relating to leased assets |
1 | 27 | 637 | 724 | 121 | 105 | 589 | 421 | 94 | 84 | 375 | 622 | –1 | 0 | 1,816 | 1,983 |
| Total (€ m) | 428 | 312 | 1,316 | 2,247 | 196 | 178 | 789 | 652 | 208 | 164 | 554 | 1,004 | 28 | –2 | 3,519 | 4,555 |
| Depreciation, amortisation and impairment losses (€ m) |
224 | 227 | 840 | 969 | 173 | 189 | 609 | 680 | 109 | 159 | 459 | 494 | 0 | 0 | 2,414 | 2,718 |
| Ratio of total capex to depreciation, amortisation and impairment |
||||||||||||||||
| losses | 1.91 | 1.37 | 1.57 | 2.32 | 1.13 | 0.94 | 1.30 | 0.96 | 1.91 | 1.03 | 1.21 | 2.03 | – | – | 1.46 | 1.68 |
1 Note 15.
2 Including rounding.
| Post & Parcel | Global | eCommerce | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Germany adjusted 1 |
Express | Forwarding, Freight |
Supply Chain | Solutions adjusted 1 |
Corporate Functions |
Consolidation 2 | Group | ||||||||||||
| 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | ||||
| Capex (€ m) relating to assets acquired |
172 | 98 | 381 | 472 | 30 | 22 | 63 | 80 | 54 | 23 | 99 | 159 | 28 | 0 | 827 | 854 | |||
| Capex (€ m) relating to leased assets |
0 | 1 | 352 | 184 | 41 | 23 | 210 | 146 | 47 | 37 | 64 | 345 | –1 | 0 | 713 | 736 | |||
| Total (€ m) | 172 | 99 | 733 | 656 | 71 | 45 | 273 | 226 | 101 | 60 | 163 | 504 | 27 | 0 | 1,540 | 1,590 | |||
| Depreciation, amortisation and impairment losses (€ m) |
81 | 78 | 291 | 334 | 59 | 62 | 213 | 221 | 38 | 54 | 156 | 169 | 0 | –1 | 838 | 917 | |||
| Ratio of total capex to depreciation, amortisation and impairment |
|||||||||||||||||||
| losses | 2.12 | 1.27 | 2.52 | 1.96 | 1.20 | 0.73 | 1.28 | 1.02 | 2.66 | 1.11 | 1.04 | 2.98 | – | – | 1.84 | 1.73 |
1 Note 15.
2 Including rounding.
Net cash from operating activities increased year-on-year by €242 million to €3,386 million in the first nine months of 2019. Based upon EBIT, which at €2,870 million was well over the previous year's figure (€2,028 million), all non-cash income and expense items were adjusted. The payments resulting from the sale of the Supply Chain business in China are shown in net cash from / used in investing activities. The cash outflow from changes in working capital was down from €1,038 million to €743 million, due primarily to a decrease in the cash outflow from the build-up of inventories.
Net cash used in investing activities decreased from €1,296 million to €1,045 million. The key factor here was net proceeds from the sale of the Supply Chain business in China amounting to €653 million. The cash outflow to acquire property, plant and equipment and intangible assets was €881 million higher than in the previous year, at €2,679 million. Payments for the renewal of the Express intercontinental aircraft fleet have totalled €988 million in financial year 2019 to date. In contrast, the sale of money marketfunds increased proceeds from current financial assets by €309 million to €782 million.
In addition to these effects, greater cash funds were required for leases. Free cash flow decreased from €–248 million to €–296 million.
At €3,198 million, net cash used in financing activities was up €521 million, much higher than in the previous year (€2,677 million). In the previous year, we had issued promissory note loans totalling €500 million. In the reporting period, we repaid €265 million of this amount early, whilst also taking out loans of €527 million.
Cash and cash equivalents declined from €3,017 million as at 31 December 2018 to €2,230 million as at 30 September 2019.
| € m | ||||
|---|---|---|---|---|
| 9 M 2018 | 9 M 2019 | Q 3 2018 | Q 3 2019 | |
| Net cash from operating activities | 3,144 | 3,386 | 1,421 | 1,869 |
| Sale of property, plant and equipment and intangible assets | 46 | 104 | 1 | 15 |
| Acquisition of property, plant and equipment and intangible assets | –1,798 | –2,679 | –733 | – 816 |
| Cash outflow from change in property, plant and equipment and intangible assets | –1,752 | –2,575 | –732 | – 801 |
| Disposals of subsidiaries and other business units | 5 | 678 | 5 | 21 |
| Disposals of investments accounted for using the equity method and other investments | 0 | 0 | 0 | 0 |
| Acquisition of subsidiaries and other business units | – 58 | –14 | –7 | – 6 |
| Acquisition of investments accounted for using the equity method and other investments | –33 | – 8 | – 4 | 1 |
| Cash outflow / inflow from acquisitions / divestitures | – 86 | 656 | – 6 | 16 |
| Proceeds from lease receivables | 13 | 19 | 0 | 6 |
| Repayment of lease liabilities | –1,257 | –1,418 | – 442 | – 471 |
| Interest on lease liabilities | –277 | –310 | – 94 | –106 |
| Cash outflow from leases | –1,521 | –1,709 | – 536 | – 571 |
| Interest received | 39 | 59 | 13 | 22 |
| Interest paid | –72 | –113 | –17 | –28 |
| Net interest paid | –33 | – 54 | – 4 | – 6 |
| Free cash flow | –248 | –296 | 143 | 507 |
| 31 Dec. 2018 |
30 Sept. 2019 |
||
|---|---|---|---|
| Equity ratio | % | 27.5 | 24.5 |
| Net debt | € m | 12,303 | 14,492 |
| Net interest cover 1 | 6.5 | 7.9 | |
| Net gearing | % | 47.0 | 53.7 |
1 In the first nine months.
As at 30 September 2019, the Group's total assets amounted to €50,912 million, €442 million higher than at 31 December 2018 (€50,470 million).
Intangible assets increased from €11,850 million to €12,002 million because additions and positive currency effects exceeded amortisation and impairment losses and disposals. Property, plant and equipment rose from €19,202 million to €20,814 million, primarily on account of the €1 billion already capitalised for the renewal of the Express intercontinental aircraft fleet, mainly for advance payments. In contrast, other non-current assets dropped by €227 million to €126 million.
This was due mainly to the remeasurements that reduced pension assets. Our sale of money market funds sharply reduced current financial assets from €943 million to €140 million. Trade receivables increased from €8,247 million to €8,524 million. Other current assets rose by €434 million to €2,803 million. This figure includes the deferred expense of €104 million at the reporting date that was recognised for the prepaid annual contribution to civil servant pensions to the Bundesanstalt für Post und Telekommunikation. The €787 million decrease in cash and cash equivalents to €2,230 million is described in the section Financial position, page 6. Assets held for sale declined by €361 million to €65 million after the sale of the Supply Chain business in China.
On the equity and liabilities side of the balance sheet, equity attributable to Deutsche Post AG shareholders stood at €12,225 million, markedly below the level as at 31 December 2018 (€13,590 million): consolidated net profit for the period and currency effects increased this figure, whilst actuarial losses from pension obligations and the dividend distribution decreased it. Lower interest rates resulted in a steep increase in provisions for pensions and similar obligations by €1,789 million to €6,137 million. On balance, financial liabilities rose from €16,462 million to €17,219 million. Loans were taken out and three promissory note loans were repaid early. Trade payables decreased from €7,422 million to €6,508 million as at the balance sheet date.
Other current liabilities increased by €615 million to €5,047 million, due primarily to an increase in liabilities to employees. After the disposal of the Supply Chain business in China, liabilities associated with assets held for sale declined to €54 million.
Our net debtrose from €12,303 million as at 31 December 2018 to €14,492 million as at 30 September 2019. At 24.5 %,the equity ratio fell below the figure as at 31 December 2018 (27.5 %). Net interest cover indicates the extent to which net interest obligations are covered by EBIT. At 7.9, it was up on the previous year's level (6.5). Net gearing was 53.7 % as at 30 September 2019.
| € m | ||
|---|---|---|
| 31 Dec. | 30 Sept. | |
| 2018 | 2019 | |
| Non-current financial liabilities | 13,838 | 13,830 |
| Current financial liabilities | 2,425 | 3,032 |
| Financial liabilities 1 | 16,263 | 16,862 |
| Cash and cash equivalents | 3,017 | 2,230 |
| Current financial assets | 943 | 140 |
| Financial assets | 3,960 | 2,370 |
| Net debt | 12,303 | 14,492 |
1 Less operating financial liabilities.
| € m | ||||||
|---|---|---|---|---|---|---|
| 9 M 2018 | Q 3 2018 | |||||
| adjusted 1 | 9 M 2019 | + / – % | adjusted 1 | Q 3 2019 | + / – % | |
| Revenue | 10,919 | 11,194 | 2.5 | 3,520 | 3,713 | 5.5 |
| of which Post | 7,134 | 7,040 | –1.3 | 2,273 | 2,344 | 3.1 |
| Parcel | 3,929 | 4,320 | 10.0 | 1,299 | 1,428 | 9.9 |
| Other / Consolidation | –144 | –166 | –15.3 | – 52 | – 59 | –13.5 |
| Profit / loss from operating activities (EBIT) | 311 | 708 | >100 | –202 | 304 | >100 |
| Return on sales (%) 2 | 2.8 | 6.3 | – | – 5.7 | 8.2 | – |
| Operating cash flow | 562 | 480 | –14.6 | 275 | 354 | 28.7 |
1 Note 15.
2 EBIT / revenue.
In the first nine months of 2019, revenue in the division was €11,194 million, exceeding the prior-year figure of €10,919 million by 2.5 %. Revenue for the third quarter of 2019 was up 5.5 % compared with the prior-year period, in part due to an extra working day.
At €7,040 million, revenue in the Post business unit in the first nine months of 2019 was 1.3 % below the previous year's level (€7,134 million). Volumes declined by 2.5 %. Third-quarterrevenue was up 3.1 % to €2,344 million.
Although volumes declined, Mail Communication revenues for the first nine months of 2019 nearly reached the prior-year level, mainly as a result of the postage rate increase as at 1 July. Third-quarterrevenue exceeded the previous year's level thanks to the rate increase and the extra working day.
The generaltrend towards sending goods as letters persisted. In theDialogue Marketing business, activities are shifting increasingly to online media. The measures we have taken to increase sales to e-commerce businesses were unable to fully compensate for the revenue and volume declines.
In the Parcel business unit, revenue was up 10.0 % to €4,320 million in the first nine months of 2019. Growth in the third quarter amounted to 9.9 %. Volumes also continued to rise due to sustained growth in e-commerce, with an increase of 6.8 % to 1,118 million items in the first nine months and 6.1 % to 368 million items in the third quarter. The fact that revenue growth outpaced volume growth is attributable to price increases.
| 9 M 2018 adjusted 1 |
9 M 2019 | + / – % | Q 3 2018 adjusted 1 |
Q 3 2019 | + / – % |
|---|---|---|---|---|---|
| 7,134 | 7,040 | –1.3 | 2,273 | 2,344 | 3.1 |
| 4,626 | 4,586 | – 0.9 | 1,469 | 1,548 | 5.4 |
| 1,603 | 1,558 | –2.8 | 519 | 506 | –2.5 |
| 905 | 896 | –1.0 | 285 | 290 | 1.8 |
| 3,929 | 4,320 | 10.0 | 1,299 | 1,428 | 9.9 |
1 Note 15.
| Mail items (millions) | ||||||
|---|---|---|---|---|---|---|
| 9 M 2018 | Q 3 2018 | |||||
| adjusted 1 | 9 M 2019 | + / – % | adjusted 1 | Q 3 2019 | + / – % | |
| Post | 13,059 | 12,734 | –2.5 | 4,189 | 4,177 | – 0.3 |
| of which Mail Communication | 5,641 | 5,506 | –2.4 | 1,788 | 1,813 | 1.4 |
| Dialogue Marketing | 6,182 | 5,973 | –3.4 | 2,019 | 1,959 | –3.0 |
| Parcel | 1,047 | 1,118 | 6.8 | 347 | 368 | 6.1 |
1 Note 15.
EBIT in the division improved significantly in the first nine months of 2019, rising from €311 million to €708 million. Earnings for the previous year had been heavily impacted by non-recurring expenses for the early retirement programme for civil servants and by restructuring measures amounting to €443 million. However, the prior-year figure also included a positive one-off effect of €108 million from the revaluation of pension obligations. Return on sales in the first nine months of 2019 rose from 2.8 % to 6.3 %. EBIT in the division forthe third quarter of 2019 amounted to €304 million (previous year: €–202 million). The prior-year figure included expenses for the early retirement programme and restructuring which amounted to €392 million. In addition, although the third quarter of 2019 saw netincome of €90 million from the revaluation of pension obligations, this was offset by additional restructuring costs of the same amount. Operating cash flow fell to €480 million in the first nine months of 2019, due primarily to the negative trend in working capital.
€ m
| 9 M 2018 | 9 M 2019 | + / – % | Q 3 2018 | Q 3 2019 | + / – % | |
|---|---|---|---|---|---|---|
| Revenue | 11,724 | 12,458 | 6.3 | 3,906 | 4,247 | 8.7 |
| of which Europe | 5,273 | 5,554 | 5.3 | 1,725 | 1,858 | 7.7 |
| Americas | 2,383 | 2,614 | 9.7 | 812 | 911 | 12.2 |
| Asia Pacific | 4,155 | 4,438 | 6.8 | 1,385 | 1,525 | 10.1 |
| MEA (Middle East and Africa) | 842 | 909 | 8.0 | 277 | 306 | 10.5 |
| Consolidation / Other | – 929 | –1,057 | –13.8 | –293 | –353 | –20.5 |
| Profit from operating activities (EBIT) | 1,387 | 1,428 | 3.0 | 409 | 454 | 11.0 |
| Return on sales (%) 1 | 11.8 | 11.5 | – | 10.5 | 10.7 | – |
| Operating cash flow | 2,168 | 2,321 | 7.1 | 794 | 898 | 13.1 |
1 EBIT / revenue.
Revenue in the division increased by 6.3 % to €12,458 million in the first nine months of 2019 (previous year: €11,724 million). This figure includes foreign currency gains of €208 million; excluding these gains, the revenue increase was 4.5 %. The revenue figure also reflects the factthatfuel surcharges were higherin allregions compared with the previous year. Excluding currency effects and the fuel surcharges, revenue was up by 3.4 %.
In the TimeDefinite International(TDI) productline,revenues per day rose by 4.9 % in the first nine months of 2019 and per-day shipment volumes by 5.8 %. Revenues per day forthe third quarter of 2019 were up by 5.6 % and per-day shipment volumes by 5.9 %.
In the Time Definite Domestic (TDD) product line, revenues per day increased by 7.0 % in the first nine months of 2019 and per-day shipment volumes by 8.0 %. Growth in the third quarter amounted to 9.8 % for revenues per day and 8.8 % for per-day volumes.
| 9 M 2018 | Q 3 2018 | ||||
|---|---|---|---|---|---|
| adjusted 1 | 9 M 2019 | + / – % | adjusted 1 | Q 3 2019 | + / – % |
| 47.3 | 49.6 | 4.9 | 46.3 | 48.9 | 5.6 |
| 4.3 | 4.6 | 7.0 | 4.1 | 4.5 | 9.8 |
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.
| Thousands of items per day | ||||||
|---|---|---|---|---|---|---|
| 9 M 2018 | 9 M 2019 | + / – % | Q 3 2018 | Q 3 2019 | + / – % | |
| Time Definite International (TDI) | 925 | 979 | 5.8 | 908 | 962 | 5.9 |
| Time Definite Domestic (TDD) | 474 | 512 | 8.0 | 464 | 505 | 8.8 |
Revenue in the Europe region increased by 5.3 % to €5,554 million in the first nine months of 2019 (previous year: €5,273 million). That figure includes foreign currency losses of €16 million; growth excluding currency effects was 5.6 %. In the TDI product line, revenues per day increased by 5.0 %. Per-day shipment volumes improved by 7.8 %. International per-day revenues for the third quarter of 2019 were up by 4.5 % and per-day shipment volumes by 7.6 %.
Revenue in the Americas region increased by 9.7 % to €2,614 million in the first nine months of 2019 (previous year: €2,383 million). Included in that figure are foreign currency gains of €81 million. Excluding currency effects, growth came to 6.3 %. In the TDI product line, per-day shipments were up by 4.1 % compared with the previous year. Revenues per day increased by 4.7 %. Growth in the third quarter of 2019 amounted to 6.1 % for per-day volumes and 7.6 % for revenues per day.
Revenue in the Asia Pacific region rose by 6.8 % to €4,438 million in the first nine months of 2019 (previous year: €4,155 million). That figure includes foreign currency gains of €108 million. Excluding currency effects, revenue increased by 4.2 %. In the TDI productline,revenues per day rose by 4.8 % and per-day volumes by 4.2 %. Growth in the third quarter of 2019 amounted to 5.8 % for revenues per day and 5.7 % for per-day volumes.
Revenue in the MEA region (Middle East and Africa) improved by 8.0 % in the first nine months of 2019 to €909 million (previous year: €842 million). The revenue figure includes foreign currency gains of €30 million. Revenue growth excluding currency effects
was 4.4 %. TDIrevenues per day rose by 5.8 % and per-day volumes by 5.3 %. International per-day revenues for the third quarter of 2019 were up by 3.0 % and per-day shipment volumes declined by 5.9 %.
As expected, EBIT growth accelerated in the reporting period particularly as the effects of portfolio streamlining for heavy shipments on earnings continue to diminish. EBIT forthe division rose by 3.0 % to €1,428 million in the first nine months of 2019 (previous year: €1,387 million). The return on sales was 11.5 % (previous year: 11.8 %). In the third quarter, EBIT improved by 11.0 % to €454 million and return on sales increased from 10.5 % to 10.7 %. Operating cash flow increased to €2,321 million in the first nine months of 2019 (previous year: €2,168 million).
| € m | ||||||
|---|---|---|---|---|---|---|
| 9 M 2018 | 9 M 2019 | + / – % | Q 3 2018 | Q 3 2019 | + / – % | |
| Revenue | 10,976 | 11,274 | 2.7 | 3,683 | 3,716 | 0.9 |
| of which Global Forwarding 1 | 7,784 | 7,956 | 2.2 | 2,640 | 2,645 | 0.2 |
| Freight | 3,298 | 3,405 | 3.2 | 1,076 | 1,090 | 1.3 |
| Consolidation / Other 1 | –106 | – 87 | 17.9 | –33 | –19 | 42.4 |
| Profit from operating activities (EBIT) | 281 | 348 | 23.8 | 106 | 124 | 17.0 |
| Return on sales (%) 2 | 2.6 | 3.1 | – | 2.9 | 3.3 | – |
| Operating cash flow | 237 | 415 | 75.1 | 67 | 175 | >100 |
1 Prior-year figures adjusted due to reclassifications.
2 EBIT / revenue.
Revenue in the division increased by 2.7 % to €11,274 million in the first nine months of 2019 (previous year: €10,976 million). Excluding positive currency effects of €97 million, revenue was up year-on-year by 1.8 %. Revenue in the third quarter of 2019 rose by 0.9 % compared with the prior-year figure. In the Global Forwarding business unit, revenue increased by 2.2 % to €7,956 million in the first nine months of 2019 (previous year: €7,784 million). Excluding positive currency effects of €114 million,the increase was 0.7 %. At €1,876 million, gross profitforthe business unit exceeded the prior-year figure of €1,820 million.
We reported a decline in airfreight volume of 5.3 % in the first nine months of 2019, due mainly to the decline in market volumes on key trade lanes. Air freight revenues decreased by 1.3 %. Gross profit improved by 3.7 %. Air freight revenue fell by 4.7 % in the third quarter of 2019, whilst gross profitimproved by 2.1 % despite a volume decline of 6.2 %.
Ocean freight volumes forthe first nine months of 2019 were up 0.5 % on the previous year's level.Ocean freightrevenues rose by 6.2 %, whilst gross profit declined by 2.2 %. In the third quarter, ocean freight volumes rose by 2.8 % and revenue by 3.4 %, whilst gross profit fell by 2.4 %.
The industrial project business (reported in the following table as part of Other) improved compared with the prior year. The share ofrevenue related to industrial project business, which is reported under Other, increased from 30.0 % in the prior year to 34.5 %. Gross profit for industrial projects improved by 32.7 %.
| € m | ||||||
|---|---|---|---|---|---|---|
| 9 M 2018 | 9 M 2019 | + / – % | Q 3 2018 | Q 3 2019 | + / – % | |
| Air freight | 3,552 | 3,507 | –1.3 | 1,202 | 1,145 | – 4.7 |
| Ocean freight | 2,574 | 2,733 | 6.2 | 887 | 917 | 3.4 |
| Other 1 | 1,658 | 1,716 | 3.5 | 551 | 583 | 5.8 |
| Total 1 | 7,784 | 7,956 | 2.2 | 2,640 | 2,645 | 0.2 |
1 Prior-year figures adjusted due to reclassifications.
| Thousands | |||||||
|---|---|---|---|---|---|---|---|
| 9 M 2018 | 9 M 2019 | + / – % | Q 3 2018 | Q 3 2019 | + / – % | ||
| Air freight | tonnes | 2,806 | 2,657 | – 5.3 | 940 | 882 | – 6.2 |
| of which exports | tonnes | 1,579 | 1,499 | – 5.1 | 529 | 502 | – 5.1 |
| Ocean freight | TEUs 1 | 2,401 | 2,412 | 0.5 | 824 | 847 | 2.8 |
1 Twenty-foot equivalent units.
In the Freight business unit, revenue rose by 3.2 % to €3,405 million in the first nine months of 2019 (previous year: €3,298 million) despite negative currency effects of €18 million. The 9.9 % volume growth was driven mainly by B2C business in Sweden and lessthan-truckload business in the Czech Republic and Poland. The business unit's gross profitrose by 3.9 % to €861 million (previous year: €829 million).
Division EBIT increased significantly in the first nine months of 2019,rising from €281 million to €348 million. The increase was due mainly to improved gross profit margins in airfreight and cost measures. Return on sales rose to 3.1 % (previous year: 2.6 %). In the third quarter of 2019, EBIT improved from €106 million to €124 million and return on sales was 3.3 %. Operating cash flow in the first nine months amounted to €415 million (previous year: €237 million).
| € m | ||||||
|---|---|---|---|---|---|---|
| 9 M 2018 | 9 M 2019 | + / – % | Q 3 2018 | Q 3 2019 | + / – % | |
| Revenue | 9,607 | 9,865 | 2.7 | 3,271 | 3,347 | 2.3 |
| of which EMEA (Europe, Middle East and Africa) | 5,047 | 4,958 | –1.8 | 1,676 | 1,644 | –1.9 |
| Americas | 3,033 | 3,435 | 13.3 | 1,071 | 1,223 | 14.2 |
| Asia Pacific | 1,569 | 1,490 | – 5.0 | 536 | 487 | – 9.1 |
| Consolidation / Other | – 42 | –18 | 57.1 | –12 | –7 | 41.7 |
| Profit from operating activities (EBIT) | 336 | 735 | >100 | 153 | 162 | 5.9 |
| Return on sales (%) 1 | 3.5 | 7.5 | – | 4.7 | 4.8 | – |
| Operating cash flow | 386 | 521 | 35.0 | 253 | 370 | 46.2 |
1 EBIT / revenue.
Revenue in the division increased by 2.7 % to €9,865 million in the first nine months of 2019 (previous year: €9,607 million). The increase is due, in particular, to the good business performance in the Americas region. In addition, positive currency effects increased revenue by €188 million. Excluding currency effects and portfolio changes – in particular, the sale of our Supply Chain business in China in the first quarter – revenue growth was 3.3 %. In the third quarter of 2019,revenue increased by 2.3 % to €3,347 million (previous year: €3,271 million).
In the Americas and Asia Pacific regions, adjusted for the sale of the Supply Chain business in China, volumes grew in nearly all sectors. In the EMEA region, we achieved significant growth in the Engineering & Manufacturing sector.
Total revenue: €9,865 million
| of which Retail | 28 % |
|---|---|
| Consumer | 24 % |
| Auto-mobility | 16 % |
| Technology | 14 % |
| Life Sciences & Healthcare | 10 % |
| Engineering & Manufacturing | 6 % |
| Others | 2 % |
| of which Europe / Middle East / Africa / Consolidation | 50 % |
| Americas | 35 % |
| Asia Pacific | 15 % |
In the first nine months of 2019,the division concluded additional contracts worth around €694 million in annualised revenue with
both new and existing customers. The Retail and Consumer sectors accounted for the majority of the gains. The annualised contract renewal rate remained at a consistently high level.
EBIT in the division was €735 million in the first nine months of 2019 (previous year: €336 million). It was influenced positively by solid growth in almost all regions and the sale of the China business in the first quarter of 2019. This was offset by negative oneoff effects of €119 million in the reporting period and €50 million in the first quarter of 2018. Excluding the above effects, EBIT was up 10.9 % in the first nine months of 2019. The return on sales was 7.5 % (previous year: 3.5 %). Operating cash flow improved from €386 million to €521 million in the first nine months of 2019.
EBIT forthe third quarter of 2019 was up 5.9 % year-on-year to €162 million. Excluding non-recurring effects from strategic measures of €–8 million, EBIT rose by 11.1 %. Return on sales amounted to 4.8 % in the third quarter (previous year: 4.7 %).
| € m | ||||||
|---|---|---|---|---|---|---|
| 9 M 2018 | 9 M 2019 | + / – % | Q 3 2018 | Q 3 2019 | + / – % | |
| Revenue | 2,769 | 2,958 | 6.8 | 915 | 964 | 5.4 |
| of which Americas | 760 | 834 | 9.7 | 253 | 273 | 7.9 |
| Europe | 1,608 | 1,696 | 5.5 | 527 | 541 | 2.7 |
| Asia | 405 | 427 | 5.4 | 136 | 148 | 8.8 |
| Other / Consolidation | – 4 | 1 | >100 | –1 | 2 | >100 |
| Profit / loss from operating activities (EBIT) | –21 | – 40 | – 90.5 | –7 | 6 | >100 |
| Return on sales (%) 1 | – 0.8 | –1.4 | – | – 0.8 | 0.6 | – |
| Operating cash flow | 54 | 128 | >100 | 20 | 80 | >100 |
1 EBIT / revenue.
The division generated revenue of €2,958 million in the first nine months of 2019, up 6.8 % on the prior-year figure of €2,769 million, despite individual portfolio streamlining measures. All regions contributed to the increase. Revenue in the Americas region rose by 9.7 % to €834 million (previous year: €760 million). In the Europe region, revenue grew by 5.5 % to €1,696 million (previous year: €1,608 million). Revenue in the Asia region came to €427 million in the first nine months of the year, exceeding the prior-year figure by 5.4 %. Excluding foreign currency gains of €58 million,the total year-on-yearrevenue increase came to 4.7 % in the reporting period.Division revenue forthe third quarter was up 5.4 % to €964 million (previous year: €915 million).
Division EBIT fell to €–40 million in the first nine months of 2019 (previous year: €–21 million), due primarily to restructuring expenses in a net amount of €55 million. The expenses were incurred for portfolio optimisation, overhead reductions and loss allowances, amongst otherthings. The return on sales therefore remained negative at –1.4 % (previous year: –0.8 %). At €128 million, operating cash flow was significantly higher than in the previous year, mainly due to improvements in operating performance and net working capital. Third-quarter EBIT came to €6 million (previous year: €–7 million), with the increase reflecting the good performance of the core business and the initial successes of the restructuring measures implemented. Return on sales amounted to 0.6 % in the third quarter (previous year: –0.8 %).
The economic outlook for 2019 as reported in the 2018 Annual Report beginning on page 63 deteriorated further as the year progressed. In itsOctoberforecast, IHS Markit expects global growth of 2.6 % (IMF: 3.0 % as at October), with the outlook for global trade volume projected at 2.0 % (IMF: 1.1 % as at October). Any recovery in global growth is unlikely before the second half of 2020. The looming political and economic risks are mainly on the downside, including the situation in the Middle East and its impact on the oil price, global trade conflicts and a significant slowdown in key economies.
The gradual deceleration of growth in the Chinese economy will continue, with IHS Markit expecting annual growth for full-year 2019 to decline to 6.2 % (IMF: 6.1 % as at October). The Japanese economy will hardly gain any momentum afterthe VAT increase on 1 October(IHS Markit: 0.9 %; IMF: 0.9 % as atOctober).
New tariffs will slow growth in the United States but are unlikely to force its economy into recession. The renewed reduction oftheUS key interestrate to 1.5 % to 1.75 % should also contribute to this. Growth is expected to reach 2.3 % in 2019 (IMF: 2.4 % as at October), considerably lower than last year.
Growth momentum in the eurozone will slow markedly (IHS Markit: 1.1 %, IMF: 1.2 % as at October), with manufacturing and related supplier sectors being suppressed by weak world markets.
Germany is expected to continue suffering from a persistently slack economy, with no recovery expected before the second half of 2020. IHS Markit is predicting growth of just 0.4 % for 2019 (IMF in October: 0.5 %).
Afterthe end ofthe third quarter, we are confirming the earnings forecast for this year that was adjusted in August. For 2019 as a whole, the Board of Management is expecting consolidated EBIT of between €4.0 billion and €4.3 billion. The Post & Parcel Germany division is projected to contribute between €1.1 billion and €1.3 billion to this figure. For the DHL divisions, we are anticipating earnings totalling between €3.4 billion and €3.5 billion. The Corporate Functions result is forecast to be around €–0.5 billion.
We are reconfirming the expected financial position for full-year 2019 as described in the 2018 Annual Report on page 65.
We are reconfirming the projected full-year 2019 figures for the EAC and free cash flow management indicators as described in the 2018 Annual Report on page 65.
The introduction of a capital guarantee option for pension commitments to employees in Germany represents a moderately significant opportunity in full-year 2019. The Group is exposed to risk stemming from the continued restructuring of the Post & Parcel Germany division. All in all, these factors are not expected to significantly impact earnings.
Otherwise, the Group's opportunity and risk situation did not change significantly during the first nine months of 2019 as compared with the situation described in the 2018 Annual Report beginning on page 66 orthe updated opportunity and risk situation presented in the Interim Report as at 30 June 2019 on page 14. No new risks have been identified that could have a potentially critical impact on the Group's results. Based upon the Group's early warning system and in the estimation ofitsBoard of Management, there were no identifiable risks for the Group in the current forecast period 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.
Any internet sites referred to in the Interim Group Management Report do not form part of the report.
€ m
| 9 M 2018 | 9 M 2019 | Q 3 2018 | Q 3 2019 | |
|---|---|---|---|---|
| Revenue | 44,624 | 46,385 | 14,849 | 15,552 |
| Other operating income 1 | 1,319 | 1,787 | 443 | 438 |
| Changes in inventories and work performed and capitalised 1 | 261 | 188 | 84 | 47 |
| Materials expense | –23,025 | –23,459 | –7,773 | –7,861 |
| Staff costs | –15,462 | –16,021 | – 5,310 | – 5,197 |
| Depreciation, amortisation and impairment losses | –2,414 | –2,718 | – 838 | – 917 |
| Other operating expenses | –3,275 | –3,293 | –1,078 | –1,119 |
| Net income from investments accounted for using the equity method | 0 | 1 | –1 | –1 |
| Profit from operating activities (EBIT) | 2,028 | 2,870 | 376 | 942 |
| Financial income | 131 | 146 | 30 | 30 |
| Finance costs | – 542 | – 621 | –189 | –191 |
| Foreign currency losses | –18 | 1 | 0 | –12 |
| Net finance costs | – 429 | – 474 | –159 | –173 |
| Profit before income taxes | 1,599 | 2,396 | 217 | 769 |
| Income taxes | –224 | – 527 | –31 | –169 |
| Consolidated net profit for the period | 1,375 | 1,869 | 186 | 600 |
| attributable to Deutsche Post AG shareholders | 1,262 | 1,765 | 146 | 561 |
| attributable to non-controlling interests | 113 | 104 | 40 | 39 |
| Basic earnings per share (€) | 1.03 | 1.43 | 0.12 | 0.45 |
| Diluted earnings per share (€) | 1.01 | 1.41 | 0.12 | 0.45 |
1 For reasons of transparency, changes in inventories and work performed and capitalised were transferred out of other operating income and presented separately.
€ m
| 9 M 2018 | 9 M 2019 | Q 3 2018 | Q 3 2019 | |
|---|---|---|---|---|
| Consolidated net profit for the period | 1,375 | 1,869 | 186 | 600 |
| Items that will not be reclassified to profit or loss | ||||
| Change due to remeasurements of net pension provisions | 102 | –2,181 | 441 | –779 |
| Reserve for equity instruments without recycling | 0 | –30 | –3 | –28 |
| Income taxes relating to components of other comprehensive income | –38 | 97 | –14 | 44 |
| Share of other comprehensive income of investments accounted for using the equity method, net of tax | 0 | 0 | 0 | 0 |
| Total, net of tax | 64 | –2,114 | 424 | –763 |
| Items that may be reclassified subsequently to profit or loss IAS 39 hedging reserve |
||||
| Changes from unrealised gains and losses | –2 | –13 | 1 | –7 |
| Changes from realised gains and losses | –32 | 8 | – 6 | –2 |
| Currency translation reserve | ||||
| Changes from unrealised gains and losses | –3 | 333 | – 61 | 269 |
| Changes from realised gains and losses | 0 | 32 | 0 | 0 |
| Income taxes relating to components of other comprehensive income | 9 | 1 | 2 | 2 |
| Share of other comprehensive income of investments accounted for using the equity method, net of tax | 1 | 3 | –1 | 2 |
| Total, net of tax | –27 | 364 | – 65 | 264 |
| Other comprehensive income, net of tax | 37 | –1,750 | 359 | – 499 |
| Total comprehensive income | 1,412 | 119 | 545 | 101 |
| attributable to Deutsche Post AG shareholders | 1,308 | 12 | 516 | 61 |
| attributable to non-controlling interests | 104 | 107 | 29 | 40 |
| € m | ||
|---|---|---|
| 31 Dec. 2018 | 30 Sept. 2019 | |
| ASSETS | ||
| Intangible assets | 11,850 | 12,002 |
| Property, plant and equipment | 19,202 | 20,814 |
| Investment property | 18 | 28 |
| Investments accounted for using the equity method | 119 | 129 |
| Non-current financial assets | 730 | 777 |
| Other non-current assets | 353 | 126 |
| Deferred tax assets | 2,532 | 2,537 |
| Non-current assets | 34,804 | 36,413 |
| Inventories | 454 | 507 |
| Current financial assets | 943 | 140 |
| Trade receivables | 8,247 | 8,524 |
| Other current assets | 2,369 | 2,803 |
| Income tax assets | 210 | 230 |
| Cash and cash equivalents | 3,017 | 2,230 |
| Assets held for sale | 426 | 65 |
| Current assets | 15,666 | 14,499 |
| TOTAL ASSETS | 50,470 | 50,912 |
| EQUITY AND LIABILITIES Issued capital |
1,233 | 1,236 |
| Capital reserves | 3,469 | 3,461 |
| Other reserves | – 947 | – 617 |
| Retained earnings | 9,835 | 8,145 |
| Equity attributable to Deutsche Post AG shareholders | 13,590 | 12,225 |
| Non-controlling interests | 283 | 246 |
| Equity | 13,873 | 12,471 |
| Provisions for pensions and similar obligations | 4,348 | 6,137 |
| Deferred tax liabilities | 54 | 31 |
| Other non-current provisions | 1,655 | 1,588 |
| Non-current financial liabilities | 13,869 | 13,859 |
| Other non-current liabilities | 205 | 345 |
| Non-current provisions and liabilities | 20,131 | 21,960 |
| Current provisions | 1,073 | 926 |
| Current financial liabilities | 2,593 | 3,360 |
| Trade payables | 7,422 | 6,508 |
| Other current liabilities | 4,432 | 5,047 |
| Income tax liabilities | 718 | 586 |
| Liabilities associated with assets held for sale | 228 | 54 |
| Current provisions and liabilities | 16,466 | 16,481 |
| TOTAL EQUITY AND LIABILITIES | 50,470 | 50,912 |
€ m
| 9 M 2018 | 9 M 2019 | Q 3 2018 | Q 3 2019 | |
|---|---|---|---|---|
| Consolidated net profit for the period | 1,375 | 1,869 | 186 | 600 |
| Income taxes | 224 | 527 | 31 | 169 |
| Net finance costs | 429 | 474 | 159 | 173 |
| Profit from operating activities (EBIT) | 2,028 | 2,870 | 376 | 942 |
| Depreciation, amortisation and impairment losses | 2,414 | 2,718 | 838 | 917 |
| Net loss / income from disposal of non-current assets | 20 | – 485 | 10 | 0 |
| Non-cash income and expense | 21 | – 44 | 13 | 7 |
| Change in provisions | 174 | – 458 | 278 | –336 |
| Change in other non-current assets and liabilities | –71 | 128 | –23 | 67 |
| Dividend received | 2 | 2 | 0 | 0 |
| Income taxes paid | – 406 | – 602 | –116 | –183 |
| Net cash from operating activities before changes in working capital | 4,182 | 4,129 | 1,376 | 1,414 |
| Changes in working capital Inventories |
–257 | – 63 | –117 | 24 |
| Receivables and other current assets | – 619 | – 619 | –34 | 230 |
| Liabilities and other items | –162 | – 61 | 196 | 201 |
| Net cash from operating activities | 3,144 | 3,386 | 1,421 | 1,869 |
| Subsidiaries and other business units | 5 | 678 | 5 | 21 |
| Property, plant and equipment and intangible assets | 46 | 104 | 1 | 15 |
| Investments accounted for using the equity method and other investments | 0 | 0 | 0 | 0 |
| Other non-current financial assets | 40 | 37 | 13 | 14 |
| Proceeds from disposal of non-current assets | 91 | 819 | 19 | 50 |
| Subsidiaries and other business units | – 58 | –14 | –7 | – 6 |
| Property, plant and equipment and intangible assets | –1,798 | –2,679 | –733 | – 816 |
| Investments accounted for using the equity method and other investments | –33 | – 8 | – 4 | 1 |
| Other non-current financial assets | –10 | – 4 | –7 | –3 |
| Cash paid to acquire non-current assets | –1,899 | –2,705 | –751 | – 824 |
| Interest received | 39 | 59 | 13 | 22 |
| Current financial assets | 473 | 782 | 3 | 2 |
| Net cash used in investing activities | –1,296 | –1,045 | –716 | –750 |
| Proceeds from issuance of non-current financial liabilities | 562 | 196 | 526 | 29 |
| Repayments of non-current financial liabilities | –1,294 | –1,724 | – 449 | –768 |
| Change in current financial liabilities | – 46 | 295 | –296 | –127 |
| Other financing activities | 28 | 19 | 2 | – 6 |
| Cash paid for transactions with non-controlling interests | –3 | – 5 | 0 | 0 |
| Dividend paid to Deutsche Post AG shareholders | –1,409 | –1,419 | 0 | 0 |
| Dividend paid to non-controlling interest shareholders | –122 | –137 | –117 | –129 |
| Purchase of treasury shares | – 44 | –11 | 0 | –1 |
| Proceeds from issuing shares or other equity instruments | 0 | 11 | 0 | 11 |
| Interest paid | –349 | – 423 | –111 | –134 |
| Net cash used in financing activities | –2,677 | –3,198 | – 445 | –1,125 |
| Net change in cash and cash equivalents | – 829 | – 857 | 260 | – 6 |
| Effect of changes in exchange rates on cash and cash equivalents | –78 | 39 | – 43 | 18 |
| Changes in cash and cash equivalents associated with assets held for sale | 0 | 31 | 0 | –2 |
| 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 Cash and cash equivalents at end of reporting period |
3,135 2,228 |
3,017 2,230 |
2,011 2,228 |
2,220 2,230 |
| € m | Other reserves | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Issued | Capital | IAS 39 revalu ation |
IAS 39 hedging |
Reserve for equity in struments without |
Currency translation |
Retained | Equity attributable to Deutsche Post AG share |
Non-con trolling |
Total | |
| capital | reserves | reserve | reserve | recycling | reserve | earnings | holders | interests | equity | |
| Balance at 1 January 2018 | 1,224 | 3,327 | 10 | 19 | – | –1,027 | 9,084 | 12,637 | 266 | 12,903 |
| Adjustments due to new IFRS | –10 | 11 | –1 | – 50 | – 50 | –2 | – 52 | |||
| Balance at 1 January 2018, adjusted | 1,224 | 3,327 | – | 19 | 11 | –1,028 | 9,034 | 12,587 | 264 | 12,851 |
| Capital transactions with owner Dividend |
–1,409 | –1,409 | –122 | –1,531 | ||||||
| Transactions with non-controlling interests |
0 | 0 | 0 | 4 | 4 | –3 | 1 | |||
| Changes in non-controlling interests due to changes in consolidated group |
0 | 2 | 2 | |||||||
| Issue / retirement of treasury shares | 3 | 25 | 0 | 28 | 0 | 28 | ||||
| Purchase of treasury shares | –1 | – 45 | – 46 | – 46 | ||||||
| Differences between purchase and issue prices of treasury shares (share-based payment schemes) |
7 | –7 | 0 | 0 | ||||||
| Convertible bonds | 5 | 102 | 107 | 107 | ||||||
| Share-based payment schemes (issuance) | 79 | 79 | 79 | |||||||
| Share-based payment schemes (exercise) | 2 | – 92 | 65 | –25 | –25 | |||||
| –1,262 | –123 | –1,385 | ||||||||
| Total comprehensive income | ||||||||||
| Consolidated net profit for the period | 1,262 | 1,262 | 113 | 1,375 | ||||||
| Currency translation differences | 6 | 6 | – 9 | –3 | ||||||
| Change due to remeasurements of net pension provisions |
64 | 64 | 0 | 64 | ||||||
| Other changes | –24 | 0 | 0 | –24 | 0 | –24 | ||||
| 1,308 | 104 | 1,412 | ||||||||
| Balance at 30 September 2018 | 1,233 | 3,448 | – | – 5 | 11 | –1,022 | 8,968 | 12,633 | 245 | 12,878 |
| Balance at 1 January 2019 | 1,233 | 3,469 | – | –7 | 8 | – 948 | 9,835 | 13,590 | 283 | 13,873 |
| Capital transactions with owner Dividend |
–1,419 | –1,419 | –137 | –1,556 | ||||||
| Transactions with non-controlling interests |
0 | 0 | 0 | 7 | 7 | –7 | 0 | |||
| Changes in non-controlling interests due to changes in consolidated group |
0 | 0 | ||||||||
| Issue of treasury shares | 0 | 5 | – 5 | 0 | 0 | 0 | ||||
| Purchase of treasury shares | 0 | –11 | –11 | –11 | ||||||
| Differences between purchase and issue prices of treasury shares (share-based payment schemes) |
0 | 0 | 0 | |||||||
| Convertible bonds | 0 | 0 | 0 | |||||||
| Share-based payment schemes (issuance) | 34 | 34 | 34 | |||||||
| Share-based payment schemes (exercise) | 3 | – 47 | 56 | 12 | 12 | |||||
| –1,377 | –144 | –1,521 | ||||||||
| Total comprehensive income | ||||||||||
| Consolidated net profit for the period | 1,765 | 1,765 | 104 | 1,869 | ||||||
| Currency translation differences | 365 | 365 | 3 | 368 | ||||||
| Change due to remeasurements | ||||||||||
| of net pension provisions | –2,083 | –2,083 | 0 | –2,083 | ||||||
| Other changes | – 4 | –31 | 0 | –35 | 0 | –35 | ||||
| 12 | 107 | 119 | ||||||||
| Balance at 30 September 2019 | 1,236 | 3,461 | – | –11 | –23 | – 583 | 8,145 | 12,225 | 246 | 12,471 |
Deutsche Post AG is a listed corporation domiciled in Bonn, Germany. The condensed consolidated interim financial statements of Deutsche Post AG and its subsidiaries cover the period from 1 January to 30 September 2019 and have been reviewed.
The condensed consolidated interim financial statements as at 30 September 2019 were prepared in accordance with the International Financial Reporting Standards (IFRS s) and related interpretations issued by the International Accounting Standards Board (IASB) for interim financial reporting, as adopted by the European Union. These interim financial statements thus include all information and disclosures required by 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 Managementto exercise judgement and make estimates and assumptions that affect the application of accounting policies in the Group and the presentation of assets, liabilities, income and expenses. Actual amounts may differ from these estimates. The results obtained thus far in financial year 2019 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 2018. Exceptions are the new or revised International Financial Reporting Standards (IFRS s) required to be applied for the first time in financial year 2019 that, however, have not had a material influence on the consolidated interim financial statements. Detailed explanations of these can be found in the 2018 Annual Report in note 5 to the consolidated financial statements.
The income tax expense forthe reporting period was deferred on the basis of the tax rate expected to apply to the full financial year. The tax rate for 2019 will increase primarily because a smaller additional recognition of deferred taxes on tax loss carryforwards is expected due to the use of tax losses compared with the previous year.
The companies listed in the following table are consolidated in addition to the parent company Deutsche Post AG:
| 31 Dec. 2018 |
30 Sept. 2019 |
|
|---|---|---|
| Number of fully consolidated companies (subsidiaries) |
||
| German | 127 | 81 |
| Foreign | 616 | 610 |
| Number of joint operations | ||
| German | 1 | 1 |
| Foreign | 0 | 0 |
| Number of investments accounted for using the equity method |
||
| German | 1 | 1 |
| Foreign | 18 | 15 |
In the third quarter of 2019, 46 German DHL Delivery companies were merged into Deutsche Post AG. In addition to the disposal of companies resulting from the deconsolidation of the Supply Chain business in China, Hong Kong and Macao, note 2.3, an additional 4.9 % interest in Relais Colis SAS, France, which is accounted for using the equity method, and the remaining 10 % interestinOlimpoHolding S. A., Brazil, were acquired.
No companies were acquired by 30 September 2019.
The following are the variable purchase prices for companies acquired in prior years:
| Company | Basis | Period for financial years from / to |
Results range from / to |
Fair value of total obligation at the acquisition date |
Remaining payment obligation at 31 December 2018 |
Remaining payment obligation at 30 September 2019 |
|---|---|---|---|---|---|---|
| Mitsafetrans S. r. l. | EBITDA | 2016 to 2018 | €0 to 19 million | €15 million | €5 million | – |
| Suppla Group | EBITDA | 2018 to 2019 | €0 to 10 million 1 | €12 million | €10 million | – |
1 Adjusted in financial year 2018 due to reassessments.
€8 million was paid for the Suppla Group in May 2019, and €5 million was paid for Mitsafetrans S. r. l. in July 2019.
Gains are shown in other operating income; losses are reported in other operating expenses.
In mid-February 2019, Deutsche Post DHL Group sold its Supply Chain business in China, Hong Kong and Macao to S. F. Holding, China. The assets and liabilities of the companies in question had previously been reported as held for sale. The table below shows the effects of the disposal of twelve consolidated companies and three companies accounted for using the equity method.
| € m | |
|---|---|
| Supply Chain | |
| business in | |
| 1 January to 30 September 2019 | China |
| Non-current assets | 212 |
| of which goodwill | 91 |
| Current assets | 194 |
| Cash and cash equivalents | 33 |
| ASSETS | 439 |
| Non-current provisions and liabilities | 45 |
| Current provisions and liabilities | 179 |
| EQUITY AND LIABILITIES | 224 |
| Net assets | 215 |
| Cash consideration received | 686 |
| Losses from the currency translation reserve | –32 |
| Deconsolidation gain | 439 |
In addition, Deutsche Post DHL Group will receive an annual amount linked to revenue over the next ten years in a strategic partnership.
In addition to the sale of the Supply Chain business in China, note 2, the following significant transactions occurred:
As at 30 September 2019, restructuring expenses of €264 million net had been incurred for measures intended to improve earnings, €119 million of which were attributable to the Supply Chain division, €90 million to Post & Parcel Germany and €55 million to eCommerce Solutions.
In the third quarter of 2019,theGroup began offering an extended group of employees in Germany the option of taking a lump-sum payment rather than receiving a lifetime pension under our occupational pension plan. Past service gains totalling €106 million were recognised in staff costs as a result.
4 Revenue by business unit
| 9 M 2018 | 9 M 2019 | |
|---|---|---|
| Post & Parcel Germany 1 | 10,669 | 10,922 |
| Post | 6,832 | 6,720 |
| Parcel | 3,767 | 4,138 |
| Other | 70 | 64 |
| Express | 11,447 | 12,185 |
| Global Forwarding, Freight | 10,323 | 10,580 |
| Global Forwarding | 7,610 | 7,808 |
| Freight | 2,713 | 2,772 |
| Supply Chain | 9,505 | 9,790 |
| eCommerce Solutions 1 | 2,585 | 2,799 |
| Corporate Functions | 95 | 109 |
| Total revenue | 44,624 | 46,385 |
1 Prior-period amounts adjusted due to new segment structure, note 15.
| € m | |
|---|---|
| ----- | -- |
| 9 M 2018 | 9 M 2019 | |
|---|---|---|
| Income from the disposal of assets | 39 | 516 |
| Insurance income | 165 | 180 |
| Income from the remeasurement of liabilities | 92 | 146 |
| Income from currency translation | 160 | 140 |
| Reversals of impairment losses on receivables and other assets |
84 | 105 |
| Income from fees and reimbursements | 93 | 88 |
| Income from the reversal of provisions | 123 | 71 |
| Commission income | 68 | 59 |
| Operating lease income | 37 | 47 |
| Sublease income | 25 | 37 |
| Income from prior-period billings | 42 | 33 |
| Income from loss compensation | 21 | 20 |
| Income from derivatives | 52 | 18 |
| Income from the derecognition of liabilities | 9 | 12 |
| Recoveries on receivables previously written off | 12 | 11 |
| Subsidies | 13 | 10 |
| Miscellaneous | 284 | 294 |
| Total | 1,319 | 1,787 |
Since the fourth quarter of 2018, changes in inventories and work performed and capitalised have been presented in a separate item in the income statement, note 6. The prior-period amounts were adjusted accordingly.
Income from the disposal of assets increased, in particular due to the sale of the Supply Chain business in China, note 2.
Miscellaneous other operating income includes a large number of smaller individual items.
| € m | ||
|---|---|---|
| 9 M 2018 | 9 M 2019 | |
| Income (+) / expense (–) from changes in inventories | 21 | – 99 |
| Work performed and capitalised | 240 | 287 |
| Total | 261 | 188 |
Changes in inventories and work performed and capitalised have been presented as a separate income statement item since the fourth quarter of 2018, note 5. The prior-period amounts were adjusted accordingly.
Changes in inventories relate mainly to real estate development projects and the production of StreetScooter electric vehicles. Work performedandcapitalisedwasattributableprimarily to StreetScooter GmbH.
| € m | ||
|---|---|---|
| 9 M 2018 | 9 M 2019 | |
| Amortisation of and impairment losses on intangible assets, of which impairment loss: €0 million (previous year: €1 million) |
143 | 160 |
| Depreciation of and impairment losses on property, plant and equipment acquired 1, of which impairment loss: €22 million (previous year: €2 million) |
889 | 1,029 |
| Depreciation of and impairment losses on right-of-use assets 1, of which impairment loss: €11 million (previous year: €7 million) |
1,382 | 1,524 |
| Impairment of goodwill | 0 | 5 |
| Depreciation, amortisation and impairment losses |
2,414 | 2,718 |
1 Including investment property.
Total impairment losses amounted to €38 million. Of this figure, €34 million was attributable to the Supply Chain segment and related mainly (€21 million) to the non-current assets of the power packaging business in the United States.
| € m |
|---|
| 9 M 2018 | 9 M 2019 | |
|---|---|---|
| Cost of purchased cleaning and security services | 304 | 327 |
| Warranty expenses, refunds and compensation | ||
| payments | 235 | 266 |
| Expenses for advertising and public relations | 265 | 258 |
| Travel and training costs | 253 | 254 |
| Other business taxes | 187 | 202 |
| Write-downs of current assets | 176 | 185 |
| Telecommunication costs | 159 | 166 |
| Office supplies | 132 | 143 |
| Insurance costs | 240 | 140 |
| Currency translation expenses | 157 | 137 |
| Entertainment and corporate hospitality expenses | 132 | 130 |
| Services provided by the Bundesanstalt für Post | ||
| und Telekommunikation (German federal post and | ||
| telecommunications agency) | 114 | 118 |
| Customs clearance-related charges | 98 | 107 |
| Contributions and fees | 78 | 90 |
| Consulting costs (including tax advice) | 92 | 81 |
| Voluntary social benefits | 68 | 66 |
| Monetary transaction costs | 45 | 50 |
| Legal costs | 42 | 49 |
| Commissions paid | 42 | 44 |
| Losses on disposal of assets | 45 | 40 |
| Audit costs | 22 | 22 |
| Donations | 16 | 15 |
| Miscellaneous | 373 | 403 |
| Total | 3,275 | 3,293 |
For reasons of transparency, the disclosure of personal insurance expenses was standardised as staff costs in the reporting period. Insurance expenses declined accordingly.
Miscellaneous other operating expenses include part of the restructuring expenses for Post & Parcel Germany, Supply Chain and eCommerce Solutions.
In the previous year, other operating expenses included €49 million attributable to negative effects from customer contracts in the Supply Chain division.
Basic earnings per share in the reporting period were €1.43 (previous year: €1.03).
| number 1,229,198,690 | 1,233,639,577 | |
|---|---|---|
| € m | 1,262 | 1,765 |
| 9 M 2018 | 9 M 2019 | |
Diluted earnings per share in the reporting period were € 1.41 (previous year: € 1.01).
| 9 M 2018 | 9 M 2019 | ||
|---|---|---|---|
| Consolidated net profit for the period attributable to Deutsche Post AG shareholders |
€ m | 1,262 | 1,765 |
| Plus interest expense on the convertible bond |
€ m | 6 | 6 |
| Less income taxes | € m | 1 | 1 |
| Adjusted consolidated net profit for the period attributable to Deutsche Post AG shareholders |
€ m | 1,267 | 1,770 |
| Weighted average number of shares outstanding |
number 1,229,198,690 | 1,233,639,577 | |
| Potentially dilutive shares | number | 22,743,508 | 20,209,961 |
| Weighted average number of shares for diluted earnings |
number 1,251,942,198 | 1,253,849,538 | |
| Diluted earnings per share | € | 1.01 | 1.41 |
Investments in intangible assets (not including goodwill), property, plant and equipment acquired and right-of-use assets amounted to €4,555 million as at 30 September 2019 (previous year: €3,519 million).
| € m | ||
|---|---|---|
| 30 Sept. | 30 Sept. | |
| 2018 | 2019 | |
| Intangible assets (not including goodwill) | 140 | 139 |
| Property, plant and equipment acquired | ||
| Land and buildings | 90 | 101 |
| Technical equipment and machinery | 97 | 147 |
| Transport equipment | 153 | 168 |
| Aircraft | 69 | 78 |
| IT equipment | 60 | 57 |
| Operating and office equipment | 49 | 50 |
| Advance payments and assets under | ||
| development | 1,045 | 1,832 |
| 1,563 | 2,433 | |
| Right-of-use assets | ||
| Land and buildings | 1,295 | 1,559 |
| Technical equipment and machinery | 44 | 41 |
| Transport equipment | 136 | 148 |
| Aircraft | 341 | 233 |
| Advance payments | 0 | 2 |
| 1,816 | 1,983 | |
| Total | 3,519 | 4,555 |
Advance payments increased due chiefly to the renewal ofthe intercontinental Express aircraft fleet. A total of €988 million has been paid to date in financial year 2019.
Goodwill changed as follows:
| € m | ||
|---|---|---|
| 2018 | 2019 | |
| Cost | ||
| Balance at 1 January | 12,239 | 12,236 |
| Additions from business combinations | 45 | 0 |
| Disposals | –127 | –1 |
| Currency translation differences | 79 | 186 |
| Balance at 31 December / 30 September | 12,236 | 12,421 |
| Depreciation, amortisation and impairment losses | ||
| Balance at 1 January | 1,070 | 1,037 |
| Disposals | –32 | 1 |
| Impairment losses | 0 | 5 |
| Currency translation differences | –1 | 19 |
| Balance at 31 December / 30 September | 1,037 | 1,062 |
| Carrying amount at 31 December / 30 September | 11,199 | 11,359 |
| Financial assets | 730 | 777 | 943 | 140 | 1,673 | 917 | |
|---|---|---|---|---|---|---|---|
| Assets at fair value through profit or loss | 188 | 226 | 843 | 31 | 1,031 | 257 | |
| Assets at fair value through other comprehensive income | 43 | 33 | 0 | 0 | 43 | 33 | |
| Assets measured at cost | 499 | 518 | 100 | 109 | 599 | 627 | |
| 31 Dec. 2018 |
30 Sept. 2019 |
31 Dec. 2018 |
30 Sept. 2019 |
31 Dec. 2018 |
30 Sept. 2019 |
||
| € m | Non-current | Current | Total |
The financial assets decreased primarily as a result ofthe sale of money market funds.
Net impairment losses as at 30 September 2019 amounted to €56 million (previous year: €76 million).
The amounts reported in this item relate to the following transactions:
| € m | ||||
|---|---|---|---|---|
| Assets | Liabilities | |||
| 31 Dec. 2018 |
30 Sept. 2019 |
31 Dec. 2018 |
30 Sept. 2019 |
|
| DHL Logistics (Schweiz) AG, Switzerland – asset deal (Supply Chain segment) | 0 | 65 | 0 | 54 |
| Sale of the Supply Chain business in China, Hong Kong and Macao (Supply Chain segment) | 414 | 0 | 228 | 0 |
| DHL Freight GmbH, Germany – property (Global Forwarding, Freight segment) | 9 | 0 | 0 | 0 |
| Exel Logistics Property Limited, UK – property sale (Supply Chain segment) | 3 | 0 | 0 | 0 |
| Other | 0 | 0 | 0 | 0 |
| Assets held for sale and liabilities associated with assets held for sale | 426 | 65 | 228 | 54 |
Deutsche Post DHL Group intends to sell the supply chain business of DHL Logistics (Schweiz) AG in the fourth quarter. The measurement as part of the reclassification to assets held for sale and liabilities associated with assets held for sale resulted in an impairment loss of €1 million.
The sale of the Supply Chain business in China to S. F. Holding, China, was completed in February 2019, note 2.
The sale disclosed during the year of DHL Paket (Austria) GmbH assets to Österreichische Post as part of a long-term partnership was completed in August 2019.
KfW Bankengruppe (KfW) held a 20.5 % interest in the share capital of Deutsche Post AG as at 30 September 2019. The remaining shares are in free float.
| € | ||
|---|---|---|
| 2018 | 2019 |
|---|---|
| 1,228,707,545 | 1,236,506,759 |
| 5,379,106 | 0 |
| 2,420,108 | 0 |
| 1,236,506,759 | 1,236,506,759 |
| – 4,513,582 | –3,628,651 |
| –1,284,619 | –393,421 |
| 2,169,550 | 3,039,077 |
| –3,628,651 | – 982,995 |
| 1,232,878,108 | 1,235,523,764 |
The issued capital is composed of 1,236,506,759 no-par value registered shares (ordinary shares) with a notional interestin the share capital of €1 per share, and is fully paid up.
The rights under the 2014 tranche of the Share Matching Scheme and underthe 2015 tranche ofthe Performance Share Plan were settled by 30 September 2019.
As at 30 September 2019, Deutsche Post AGheld 982,995 treasury shares.
| € m | |
|---|---|
| Balance at 31 December / 30 September | 3,469 | 3,461 |
|---|---|---|
| Capital increase through exercise of conversion rights under convertible bond 2012 / 2019 |
102 | 0 |
| Differences between purchase and issue prices of treasury shares |
7 | 0 |
| Retirement / issue of treasury shares | 26 | 5 |
| Total for Performance Share Plan | –2 | – 4 |
| Exercise | –28 | –22 |
| Performance Share Plan Addition |
26 | 18 |
| Total for Share Matching Scheme | 9 | – 9 |
| Exercise | – 64 | –25 |
| Share Matching Scheme Addition |
73 | 16 |
| Balance at 1 January | 3,327 | 3,469 |
| 2018 | 2019 |
€ m
| Post & Parcel Germany 1 |
Express | Global Forwarding, Freight |
Supply Chain | eCommerce Solutions 1 |
Corporate Functions Consolidation 1, 2 |
Group | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | |
| External revenue | 10,669 | 10,922 | 11,447 | 12,185 | 10,323 | 10,580 | 9,505 | 9,790 | 2,585 | 2,799 | 95 | 109 | 0 | 0 | 44,624 | 46,385 |
| Internal revenue | 250 | 272 | 277 | 273 | 653 | 694 | 102 | 75 | 184 | 159 | 1,052 | 962 –2,518 –2,435 | 0 | 0 | ||
| Total revenue | 10,919 | 11,194 | 11,724 | 12,458 | 10,976 | 11,274 | 9,607 | 9,865 | 2,769 | 2,958 | 1,147 | 1,071 –2,518 –2,435 | 44,624 | 46,385 | ||
| Profit / loss from operating activities (EBIT) |
311 | 708 | 1,387 | 1,428 | 281 | 348 | 336 | 735 | –21 | – 40 | –264 | –309 | –2 | 0 | 2,028 | 2,870 |
| of which net income / loss from invest ments accounted for using the equity method |
0 | 0 | 1 | 2 | 0 | 0 | 1 | 7 | – 4 | – 5 | 1 | –3 | 1 | 0 | 0 | 1 |
| Segment assets 3 | 5,577 | 6,024 | 13,766 | 15,157 | 8,728 | 8,872 | 8,248 | 8,076 | 1,750 | 1,649 | 4,935 | 5,442 | – 96 | – 86 | 42,908 | 45,134 |
| of which invest ments accounted for using the equity method |
0 | 0 | 33 | 36 | 24 | 25 | 12 | 17 | 30 | 33 | 21 | 18 | –1 | 0 | 119 | 129 |
| Segment liabilities 3 |
2,311 | 2,717 | 3,635 | 3,491 | 3,105 | 3,034 | 3,229 | 3,006 | 589 | 568 | 1,520 | 1,436 | –75 | – 62 | 14,314 | 14,190 |
| Net segment assets / liabil ities 3 |
3,266 | 3,307 | 10,131 | 11,666 | 5,623 | 5,838 | 5,019 | 5,070 | 1,161 | 1,081 | 3,415 | 4,006 | –21 | –24 | 28,594 | 30,944 |
| Capex (assets acquired) |
427 | 285 | 679 | 1,523 | 75 | 73 | 200 | 231 | 114 | 80 | 179 | 382 | 29 | –2 | 1,703 | 2,572 |
| Capex (right of-use assets) |
1 | 27 | 637 | 724 | 121 | 105 | 589 | 421 | 94 | 84 | 375 | 622 | –1 | 0 | 1,816 | 1,983 |
| Total capex | 428 | 312 | 1,316 | 2,247 | 196 | 178 | 789 | 652 | 208 | 164 | 554 | 1,004 | 28 | –2 | 3,519 | 4,555 |
| Depreciation and amortisa tion |
215 | 227 | 840 | 969 | 173 | 189 | 608 | 646 | 109 | 156 | 459 | 493 | 0 | 0 | 2,404 | 2,680 |
| Impairment losses |
9 | 0 | 0 | 0 | 0 | 0 | 1 | 34 | 0 | 3 | 0 | 1 | 0 | 0 | 10 | 38 |
| Total depreci ation, amortisa tion and impairment losses |
224 | 227 | 840 | 969 | 173 | 189 | 609 | 680 | 109 | 159 | 459 | 494 | 0 | 0 | 2,414 | 2,718 |
| Other non-cash income (–) and |
||||||||||||||||
| expenses (+) | 446 | 136 | 213 | 253 | 46 | 32 | 133 | 157 | 15 | 51 | 62 | 27 | – 5 | 1 | 910 | 657 |
| Employees 4 | 159,032 158,262 | 93,550 | 96,507 | 43,347 | 44,265 151,877 155,439 | 29,493 | 30,878 | 12,272 | 12,629 | 0 | –1 489,571 497,979 |
1 Prior-period amounts adjusted.
2 Including rounding.
3 As at 31 December 2018 and 30 September 2019.
4 Average FTEs.
€ m
| Post & Parcel Germany 1 |
Express | Global Forwarding, Freight |
Supply Chain | eCommerce Solutions 1 |
Corporate Functions Consolidation 1, 2 |
Group | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | |
| External revenue | 3,444 | 3,625 | 3,815 | 4,158 | 3,459 | 3,493 | 3,247 | 3,318 | 854 | 923 | 30 | 35 | 0 | 0 | 14,849 | 15,552 |
| Internal revenue | 76 | 88 | 91 | 89 | 224 | 223 | 24 | 29 | 61 | 41 | 364 | 335 | – 840 | – 805 | 0 | 0 |
| Total revenue | 3,520 | 3,713 | 3,906 | 4,247 | 3,683 | 3,716 | 3,271 | 3,347 | 915 | 964 | 394 | 370 | – 840 | – 805 | 14,849 | 15,552 |
| Profit / loss from operating activities (EBIT) |
–202 | 304 | 409 | 454 | 106 | 124 | 153 | 162 | –7 | 6 | – 82 | –111 | –1 | 3 | 376 | 942 |
| of which net income / loss from invest ments accounted for using the equity method |
–1 | 0 | 0 | 1 | 0 | 0 | 0 | 2 | –2 | –2 | 1 | –2 | 1 | 0 | –1 | –1 |
| Capex (assets acquired) |
172 | 98 | 381 | 472 | 30 | 22 | 63 | 80 | 54 | 23 | 99 | 159 | 28 | 0 | 827 | 854 |
| Capex (right of-use assets) |
0 | 1 | 352 | 184 | 41 | 23 | 210 | 146 | 47 | 37 | 64 | 345 | –1 | 0 | 713 | 736 |
| Total capex | 172 | 99 | 733 | 656 | 71 | 45 | 273 | 226 | 101 | 60 | 163 | 504 | 27 | 0 | 1,540 | 1,590 |
| Depreciation and amortisa tion Impairment |
72 | 78 | 291 | 334 | 59 | 62 | 213 | 212 | 38 | 57 | 156 | 169 | 0 | –1 | 829 | 911 |
| losses | 9 | 0 | 0 | 0 | 0 | 0 | 0 | 9 | 0 | –3 | 0 | 0 | 0 | 0 | 9 | 6 |
| Total depreci ation, amortisa tion and impairment losses |
81 | 78 | 291 | 334 | 59 | 62 | 213 | 221 | 38 | 54 | 156 | 169 | 0 | –1 | 838 | 917 |
| Other non-cash income (–) and expenses (+) |
427 | 23 | 61 | 103 | 8 | 11 | 40 | 24 | 7 | 15 | 13 | 1 | – 6 | 0 | 550 | 177 |
1 Prior-period amounts adjusted.
2 Including rounding.
Effective as at 1 January 2019, the Post - eCommerce - Parcel division was split into a German and an international division, each led by a separate member of the Board of Management. The German business was renamed Post & Parcel Germany. The international business is integrated into the new eCommerce Solutions division. The prior-period amounts were adjusted accordingly.
| € m | Europe (excluding | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Germany | Germany) | Americas | Asia Pacific | Other regions | Group | |||||||
| 9 M | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 |
| External revenue | 13,597 | 13,876 | 13,500 | 13,816 | 7,949 | 8,663 | 7,820 | 8,110 | 1,758 | 1,920 | 44,624 | 46,385 |
| Non-current assets 1 | 9,229 | 9,874 | 10,065 | 10,043 | 6,740 | 7,824 | 4,563 | 4,608 | 524 | 610 | 31,121 | 32,959 |
| Capex | 1,169 | 1,603 | 840 | 886 | 1,026 | 1,567 | 403 | 359 | 81 | 140 | 3,519 | 4,555 |
| Q 3 | ||||||||||||
| External revenue | 4,414 | 4,596 | 4,446 | 4,527 | 2,763 | 3,004 | 2,652 | 2,770 | 574 | 655 | 14,849 | 15,552 |
| Total capex | 491 | 664 | 235 | 368 | 647 | 430 | 148 | 87 | 19 | 41 | 1,540 | 1,590 |
1 As at 31 December 2018 and 30 September 2019.
€ m
| 9 M 2018 | 9 M 2019 | |
|---|---|---|
| Total income of reported segments | 2,294 | 3,179 |
| Corporate Functions | –264 | –309 |
| Reconciliation to Group / Consolidation | –2 | 0 |
| Profit from operating activities (EBIT) | 2,028 | 2,870 |
| Net finance costs | – 429 | – 474 |
| Profit before income taxes | 1,599 | 2,396 |
| Income taxes | –224 | – 527 |
| Consolidated net profit for the period | 1,375 | 1,869 |
The following table shows the fair values of financial instruments with each class of financial instrument presented by the level in the fair value hierarchy to which it is assigned:
| € m | ||||
|---|---|---|---|---|
| Class | Level 1 1 | Level 2 2 | Level 3 3 | Total |
| 30 September 2019 | ||||
| Non-current financial assets | 245 | 389 | 0 | 634 |
| Current financial assets | 4 | 27 | 0 | 31 |
| Financial assets | 249 | 416 | 0 | 665 |
| Non-current financial liabilities | 5,941 | 292 | 0 | 6,233 |
| Current financial liabilities | 9 | 110 | 0 | 119 |
| Financial liabilities | 5,950 | 402 | 0 | 6,352 |
| 31 December 2018 | ||||
| Non-current financial assets | 231 | 398 | 0 | 629 |
| Current financial assets | 800 | 43 | 0 | 843 |
| Financial assets | 1,031 | 441 | 0 | 1,472 |
| Non-current financial liabilities | 5,687 | 652 | 0 | 6,339 |
| Current financial liabilities | 9 | 21 | 15 | 45 |
| Financial liabilities | 5,696 | 673 | 15 | 6,384 |
1 Quoted prices for identical instruments in active markets.
2 Inputs other than quoted prices that are directly or indirectly observable for instruments.
3 Inputs not based upon observable market data.
Level 1 comprises mainly equity and debtinstruments measured atfair value and debt instruments measured at amortised cost.
In addition to financial assets and financial liabilities measured at amortised cost, commodity, interest rate and currency derivatives are reported under Level 2. The fair values of financial assets measured at amortised cost are determined, amongst other things, using the multiplier method. The fair values of the derivatives are measured on the basis of discounted expected future cash flows,taking into account forward rates for currencies, interest rates and commodities (market approach). Forthis purpose, price quotations observable in the market (exchange rates, interest rates and commodity prices) are imported from standard marketinformation platforms into the treasury management system. The price quotations reflect actualtransactions involving similar instruments on an active market. If currency options are used, they are measured using the Black-Scholes option pricing model. All significant inputs used to measure derivatives are observable in the 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,taking plausible assumptions into account. 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 higherfair values, whilst decreasing financialratios result in lower fair values.
As at 30 September 2019, the financial instruments categorised within Level 3 resulted in effects of €–20 million in other comprehensive income and €2 million in the income statement.
The Group's contingent liabilities and other financial obligations, such as purchase obligations, have not changed significantly compared with 31 December 2018.
As at 30 September 2019, John Gilbert stepped down from the Board of Management. Oscar de Bok assumed responsibility for the Supply Chain board department as at 1 October 2019. Dr Tobias Meyer has been head of the Post & Parcel Germany division since 1 April 2019. There were no other significant changes in related party disclosures as against 31 December 2018.
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, 11 November 2019
Deutsche Post AG The Board of Management
Dr Frank Appel Ken Allen
Dr Tobias Meyer Dr Thomas Ogilvie
John Pearson Tim Scharwath
Oscar de Bok Melanie Kreis
We have reviewed the condensed consolidated interim financial statements – comprising the 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 September 2019, which are part of the quarterly financialreport pursuantto section 115 ofthe Wertpapierhandelsgesetz (WpHG – German Securities Trading Act). The preparation of the condensed consolidated interim financial statements in accordance with the IFRS s 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 company's Board of Management.Ourresponsibility 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 ourreview of the condensed consolidated interim financial statements and the interim group management report in accordance with German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW – Institute of Public Auditors in Germany) and additionally observed the International Standard on Review Engagements "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" (ISRE 2410). Those standards require that we plan and perform the review so that we can preclude through critical evaluation,
with moderate assurance, that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS s applicable to interim financial reporting as adopted by the EU and that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group managementreports. 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 ourreview, 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 s applicable to interim financial reporting as adopted by the EU nor that the interim group management report has not been prepared, in all materialrespects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports.
Düsseldorf, 11 November 2019
PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft
Dietmar Prümm Verena Heineke Wirtschaftsprüfer Wirtschaftsprüferin
(German public auditor) (German public auditor)
Investor Relations Tel.: + 49 (0) 228 182-6 36 36 Fax: + 49 (0) 228 182-6 31 99 E-mail: ir @ dpdhl.com
Press Office Tel.: + 49 (0) 228 182-99 44 Fax: + 49 (0) 228 182-98 80 E-mail: pressestelle @ dpdhl.com
External E-mail: ir @ dpdhl.com dpdhl.com/en/investors
Internal GeT and DHL Webshop Mat. no. 675-602-585
Published on 12 November 2019.
The English version of the Interim Report as at 30 September 2019 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.
10 March 2020 2019 Annual Report
12 May 2020 Interim Report as at 31 March 2020
13 May 2020 2020 Annual General Meeting 18 May 2020 Dividend payment
5 August 2020 Interim Report as at 30 June 2020
10 November 2020 Interim Report as at 30 September 2020
Further dates, updates as well as information on live webcasts: dpdhl.com/en/investors
Printed on EnviroTop, recycled paper produced from 100 % recovered fibre, which is manufactured climate neutrally and is, amongst other things, FSC certified, has Nordic Ecolabel 244 053 and complies with the EU Ecolabel AT/11/002 guidelines.
This Interim Report contains forward-looking statements that relate to the business, financial performance and results of operations of Deutsche Post AG. Forward-looking statements are not historical facts and may be identified by words such as "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets" and similar expressions. As these statements are based upon current plans, estimates and projections, they are subject to risks and uncertainties that could cause actual results to be materially different from the future development, performance or results expressly or implicitly assumed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as at the date of this presentation. Deutsche Post AG does not intend or assume any obligation to update these forward-looking statements to reflect events or circumstances after the date of this Interim Report.
Deutsche Post AG Headquarters Investor Relations 53250 Bonn Germany
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