Deutsche Post AG

Business and Financial Review • Nov 8, 2007

News Details

Ad-hoc | 8 November 2007 07:30

Deutsche Post AG: Deutsche Post presents Roadmap to Value

Deutsche Post AG / Miscellaneous

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Deutsche Post presents Roadmap to Value

• Two-year profit-improvement program of 1 billion euros initiated
• Net working capital to be reduced by 700 million euros
• Asset sales to generate at least 1 billion euros in cash
• Dividend increase of 20 percent for 2007 to be proposed
• EBIT of around 4.2 billion euros for 2008 expected; EBIT forecast for
2009 at around 4.7 billion euros

Deutsche Post today presents its Roadmap to Value. In detail:

Profitability: The group has launched an EBIT improvement program targeting
1 billion euros throughout by the end of 2009. The program is expected to
generate significant cost savings at the Corporate Center as well as in the
operating divisions. The company is committed to focus on underperforming
units and improve their profitability.

Cash generation: The introduction of a new value-based performance metric,
EBIT after Asset Charge, will be a key element in enforcing a sustained
focus on value generation throughout the group. Starting on January 1,
2008, management incentives will be tied to this new metric. Deutsche Post
expects this new measure to contribute significantly to cash generation. In
addition, the Group plans to free up cash by reducing its net working
capital by 700 million euros by the end of 2009. Deutsche Post also targets
at least 1 billion euros in proceeds from disposals of real estate and
other assets in the next 24 months.

Payout to shareholders: Deutsche Post plans to propose a rise of the
dividend to 90 cent per share for 2007. This is a 20 percent increase
compared with 2006. In the following years, Deutsche Post intends to
increase dividends in line with underlying earnings growth. In addition to
that the Group will consider other methods of cash return such as share
buybacks once proceeds from asset disposals reach 1 billion euros.

Transparency: Deutsche Post is committed to improve the transparency of its
financial reporting for all capital markets audiences. The Group intends to
create a stable and more comparable reporting structure and provides
gradually additional disclosure. The SERVICES segment will be unbundled and
all costs of Global Business Services will be allocated to the operating
divisions. This will result in a more transparent ‚Corporate Center /
Non-operating result’ segment. The Group will provide a comprehensive set
of pro-forma numbers reflecting the new reporting structure.

Outlook

From now on, Deutsche Post World Net will give a detailed earnings outlook
for the following year. This will reduce the volatility stemming from
unexpected regional economic slowdowns and provide an outlook in line with
the industry.

For 2008, the group expects an EBIT of about 4.2 billion euros. At the MAIL
division, an EBIT of approximately 1.9 billion euros is expected. The
EXPRESS division plans to reach an EBIT of about 0.65 billion euros, while
the EBIT at the LOGISTICS division is expected to amount to about 1.05
billion euros. For the FINANCIAL SERVICES division, the Group forecasts an
EBIT of at least 1.15 billion euros and for the SERVICES/ Corporate Center
division it expects a loss of no more than 0.6 billion euros.

Because a guidance for 2009 has already been communicated to the capital
markets, the Group makes an exception to the new rule and provides an
update on its medium-term guidance today. Overall, Deutsche Post aims for
an EBIT of about 4.7 billion euros in 2009. For the MAIL business, there is
now a high degree of confidence that a maximum of between 10 and 20 percent
of EBIT will be affected by the full opening of the German mail market
compared with the 2006 level. Thus the company still expects the MAIL
division to reach an EBIT of between 1.65 billion euros and 1.85 billion
euros for 2009. For the EXPRESS division, Deutsche Post now forecasts an
EBIT of between 0.9 billion euros and 1.1 billion euros. This range
reflects the economic slowdown in the U.S., which has brought the recovery
process in the Americas region to a halt in the third quarter. The
management is vigorously engaged in restarting the recovery, however, it no
longer expects the region to be profitable by the end of 2009. For the
LOGISTICS division, an EBIT of between 1.15 billion euros and 1.25 billion
euros is forecast, while FINANCIAL SERVICES expects an EBIT of at least
1.2 billion euros.

Please note: Chairman and Chief Executive Officer Klaus Zumwinkel and Chief
Financial Officer John Allan will present the Roadmap to Value at an
Investors Conference in Frankfurt starting at 1.30 p.m. (CET). The
conference will be broadcast on www.dpwn.com.

Contact:
Martin Ziegenbalg
EVP Investor Relations
Tel: 0228-182-63000

08.11.2007 Financial News transmitted by DGAP

Language: English
Issuer: Deutsche Post AG
Charles-de-Gaulle-Straße 20
53113 Bonn
Deutschland
Phone: +49 (0)228 182 - 63 100
Fax: +49 (0)228 182 - 63 199
E-mail: ir@deutschepost.de
Internet: www.dpwn.de
ISIN: DE0005552004
WKN: 555200
Indices: DAX
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Hannover, Düsseldorf, Hamburg, München, Stuttgart;
Terminbörse EUREX

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