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Deutsche Post AG

Quarterly Report Nov 5, 2024

111_10-q_2024-11-05_558d0762-44b4-4def-b9c1-ff9a46d345db.pdf

Quarterly Report

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QUARTERLY STATEMENT AS OF SEPTEMBER 30, 2024

SELECTED KEY FIGURES

9M 2023 9M 2024 $+/-$ Q3 2023 Q3 2024 $+/-$
Revenue €m 60,410 61,482 1.8 19,398 20,592 6.2
Profit from operating activities (EBIT) €m 4,703 4,035 $-14.2$ 1,372 1,373 0.1
Return on sales ${ }^{1}$ \% 7.8 6.6 - 7.1 6.7 -
EBIT after asset charge (EAC) €m 2,108 1,287 $-38.9$ 501 457 $-8.8$
Consolidated net profit for the period ${ }^{2}$ €m 2,696 2,235 $-17.1$ 807 751 $-6.9$
Free cash flow €m 2,507 1,675 $-33.2$ 1,074 723 $-32.7$
Net debt ${ }^{3}$ €m 17,739 19,428 9.5 - - -
Earnings per share ${ }^{4}$ 2.26 1.91 $-15.5$ 0.68 0.64 $-5.9$
Number of employees ${ }^{5}$ 589,184 595,267 1.0 - - -

1 EBIT/revenue.
2 After deduction of noncontrolling interests.
3 Prior-year figure as of December 31.
4 Basic earnings per share.
5 Headcount at the end of the quarter, including trainees.

Significant events

On September 23, 2024, the Board of Management announced its principal decision to modernize the Group structure. The DHL Group's legal structure will be aligned with its management structure over the next two years and all divisions managed as standalone corporate entities.

Consolidated revenue up 6.2\% in third quarter

At $€ 20,592$ million, consolidated revenue increased by $6.2 \%$ year on year in the third quarter of 2024. This includes negative currency effects amounting to $€ 201$ million. Other operating income fell by $€ 23$ million to $€ 730$ million.

Consolidated EBIT at prior-year level

Profit from operating activities (EBIT) in the third quarter of 2024 amounted to $€ 1,373$ million and was on a level with the prioryear figure ( $€ 1,372$ million). At $€ 215$ million, net finance costs were less favorable than the previous year's $€ 162$ million. Profit before income taxes fell by $€ 52$ million to $€ 1,158$ million. As a result, income taxes decreased to $€ 347$ million. The tax rate amounted to $30.0 \%$, as in the previous year.

Drop in consolidated net profit for the period

Consolidated net profit for the period in the third quarter of 2024 amounted to $€ 811$ million, thus below the prior-year figure of $€ 847$ million. Of this amount, $€ 751$ million is attributable to Deutsche Post AG shareholders and $€ 60$ million to noncontrolling interest holders. Earnings per share amounted to $€ 0.64$ (basic) and $€ 0.63$ (diluted).

EBIT after asset charge (EAC) decreases

EAC for the third quarter of 2024 declined from €501 million to €457 million. While EBIT was nearly unchanged, there was an increase in the imputed asset charge, due in particular to investments in property, plant and equipment in all divisions and higher net working capital, especially in the Global Forwarding, Freight division.

Solid liquidity situation

As of September 30, 2024, the Group reported centrally available liquidity in the amount of €0.8 billion, which is comprised of cash and cash equivalents. Due to our solid liquidity situation, the syndicated credit line in the amount of €4 billion was not drawn. In addition, unused bilateral credit lines in the amount of €2.2 billion were available as of the reporting date.

Further capital expenditure in the expansion of network infrastructure

Investments in property, plant and equipment and intangible assets acquired (not including goodwill) amounted to €690 million in the third quarter of 2024 (previous year: €871 million) and were made predominantly in the expansion of network infrastructure.

Net cash from operating activities below prior-year level

Net cash from operating activities decreased in the third quarter of 2024 from €2,534 million to €2,043 million.

Net cash used in investing activities decreased from €559 million to €478 million, partly due to lower investments in property, plant and equipment and intangible assets. At €723 million, free cash flow in the third quarter came in below the prior-year figure of €1,074 million. Excluding the payments for acquisitions and divestitures, free cash flow decreased by €373 million.

Net cash used in financing activities rose by €301 million to €1,671 million. In the previous year, the placement of a sustainability bond had resulted in proceeds of €498 million. Cash and cash equivalents fell from €3,649 million as of December 31, 2023, to €2,690 million.

Higher net debt
Net debt rose from €17,739 million as of December 31, 2023, to €19,428 million as of September 30, 2024.

Express: continued yield and cost management
Revenue in the Express division rose by 3.0\% to €6,063 million in the third quarter of 2024. This includes negative currency effects amounting to €84 million, as well as higher fuel surcharges. Excluding currency effects and fuel surcharges, third-quarter revenue exceeded the prior-year figure by 3.2\%. Given the ongoing sluggish market development, per-day revenues in the TDI product line remained at the prior-year level, while TDI daily shipment volumes fell by 5.9\% in the third quarter.

We continue to counter this development with yield and cost management along with adjustments to network capacity. EBIT in the Express division improved by 2.8\% to €686 million in the third quarter of 2024. The EBIT margin was 11.3\%.

KEY FIGURES, EXPRESS

6m 9M 2023 9M 2024 $+/-\%$ Q3 2023 Q3 2024 $+/-\%$
Revenue 18,288 18,289 0.0 5,885 6,063 3.0
of which Europe 8,136 8,221 1.0 2,588 2,688 3.9
Americas 4,438 4,353 $-1.9$ 1,474 1,470 $-0.3$
Asia Pacific 6,454 6,157 $-4.6$ 2,127 2,082 $-2.1$
MEA (Middle East and Africa) 1,118 1,094 $-2.1$ 361 365 1.1
Consolidation/Other $-1,858$ $-1,536$ 17.3 $-665$ $-542$ 18.5
Profit from operating activities (EBIT) 2,471 2,001 $-19.0$ 667 686 2.8
Return on sales (\%) ${ }^{1}$ 13.5 10.9 - 11.3 11.3 -
Operating cash flow 3,732 3,304 $-11.5$ 1,368 1,177 $-14.0$

1 EBIT/revenue.

EXPRESS: REVENUE BY PRODUCT

6m per day ${ }^{1}$ 9M 2023 9M 2024 $+/-\%$ Q3 2023 Q3 2024 $+/-\%$
Time Definite International (TDI) 74.9 73.4 $-2.0$ 71.3 71.4 0.1
Time Definite Domestic (TDD) 6.0 6.2 3.3 5.5 6.0 9.1

1 To improve comparability, product revenues were translated at uniform exchange rates. These revenues are also the basis for the weighted calculation of working days.

EXPRESS: VOLUME BY PRODUCT

Items per day (thousands) 9M 2023 9M 2024 $+/-\%$ Q3 2023 Q3 2024 $+/-\%$
Time Definite International (TDI) 1,084 1,047 $-3.4$ 1,067 1,004 $-5.9$
Time Definite Domestic (TDD) 480 474 $-1.3$ 436 467 7.1

Global Forwarding, Freight: increase in revenue from higher volumes and freight rates
Revenue in the Global Forwarding, Freight division increased by 14.0\% to $€ 5,037$ million in the third quarter of 2024 due to higher volumes and freight rates. Excluding negative currency effects of $€ 45$ million, revenue was up $15.1 \%$ on the prior-year level. Revenue in the Global Forwarding business unit grew by $17.6 \%$ to $€ 3,828$ million in the third quarter of 2024. Without taking negative currency effects of $€ 47$ million into account, the increase was 19.0\%. Gross profit in the Global Forwarding business unit was down from the previous year by $4.9 \%$ to $€ 866$ million.

Air freight volumes rose by $8.5 \%$ in the third quarter of 2024, with growth primarily on trade lanes from Asia. Air freight revenues increased by $17.2 \%$ while gross profit was down by $15.2 \%$. Ocean freight volumes grew by $8.2 \%$ year on year in the third quarter, with growth especially on trade lanes from Asia. Third-quarter ocean freight revenue went up by $27.9 \%$ and gross profit decreased by $4.4 \%$. In ocean freight markets affected by ongoing disruptions, gross profit/TEU (twenty-foot equivalent units) remained resilient with growth of $5.6 \%$ compared to the previous quarter.

Revenue in the Freight business unit increased by $3.8 \%$ in the third quarter of 2024 to $€ 1,235$ million due to price effects, while volumes were on the previous year's level. Gross profit in this business unit fell by $4.5 \%$ to $€ 295$ million.

EBIT in the Global Forwarding, Freight division declined by 9.5\% in the third quarter of 2024 to $€ 277$ million. The EBIT margin was $5.5 \%$. EBIT in the division thus corresponds to $23.9 \%$ of gross profit and $30.0 \%$ for the Global Forwarding business unit.

KEY FIGURES, GLOBAL FORWARDING, FREIGHT

$\mathbf{6 m}$ $\mathbf{9 M} \mathbf{2 0 2 3}$ $\mathbf{9 M} \mathbf{2 0 2 4}$ $+/-$ Q3 2023 Q3 2024 $+/-$
Revenue 14,740 14,534 $-1.4$ 4,417 5,037 14.0
of which Global Forwarding 10,984 10,742 $-2.2$ 3,256 3,828 17.6
Freight 3,844 3,871 0.7 1,190 1,235 3.8
Consolidation/Other $-88$ $-79$ 10.2 $-29$ $-26$ 10.3
Profit from operating activities (EBIT) 1,083 819 $-24.4$ 306 277 $-9.5$
Return on sales (\%) ${ }^{1}$ 7.3 5.6 - 6.9 5.5 -
Operating cash flow 1,847 283 $-84.7$ 505 73 $-85.5$

1 EBIT/revenue.

GLOBAL FORWARDING: REVENUE

$\mathbf{6 m}$ $\mathbf{9 M} \mathbf{2 0 2 3}$ $\mathbf{9 M} \mathbf{2 0 2 4}$ $+/-$ Q3 2023 Q3 2024 $+/-$
Air freight 4,542 4,546 0.1 1,340 1,571 17.2
Ocean freight 4,464 4,364 $-2.2$ 1,292 1,653 27.9
Other 1,978 1,832 $-7.4$ 624 604 $-3.2$
Total $\mathbf{1 0 , 9 8 4}$ $\mathbf{1 0 , 7 4 2}$ $-2.2$ 3,256 3,828 17.6

GLOBAL FORWARDING: VOLUMES

Thousands $\mathbf{9 M} \mathbf{2 0 2 3}$ $\mathbf{9 M} \mathbf{2 0 2 4}$ $+/-$ \% Q3 2023 Q3 2024 $+/-$ \%
Air freight exports tons 1,239 1,317 6.3 410 445 8.5
Ocean freight TEU $^{1}$ 2,318 2,482 7.1 793 858 8.2

1 Twenty-foot equivalent units.

Supply Chain: further revenue and earnings growth

Revenue in the Supply Chain division was up by 4.0\% to $€ 4,427$ million in the third quarter of 2024. Excluding negative currency effects of $€ 67$ million, the increase was $5.5 \%$. New and extended contracts and the growing e-commerce business led to revenue growth in almost all regions and sectors. A slight drop in revenue in the Asia Pacific region was also due to negative currency effects.

In the third quarter of 2024, the Supply Chain division concluded additional contracts with a volume of $€ 1.4$ billion. The Life Sciences \& Healthcare, Retail (including e-fulfilment solutions serving the growth in e-commerce) and Energy sectors accounted for an important part of this. The contract renewal rate remained at a consistently high level.

EBIT in the Supply Chain division rose by $13.2 \%$ to $€ 274$ million in the third quarter of 2024. The EBIT margin was $6.2 \%$.

KEY FIGURES, SUPPLY CHAIN

6m 9M 2023 9M 2024 $+/-$ Q3 2023 Q3 2024 $+/-$
Revenue 12,597 13,112 4.1 4,258 4,427 4.0
of which EMEA (Europe, Middle East and Africa) 5,546 5,758 3.8 1,886 1,930 2.3
Americas 5,206 5,497 5.6 1,761 1,882 6.9
Asia Pacific 1,888 1,873 $-0.8$ 629 621 $-1.3$
Consolidation/Other $-43$ $-16$ 62.8 $-18$ $-6$ 66.7
Profit from operating activities (EBIT) 741 809 9.2 242 274 13.2
Return on sales (\%) ${ }^{1}$ 5.9 6.2 - 5.7 6.2 -
Operating cash flow 947 1,406 48.5 494 730 47.8

1 EBIT/revenue.

eCommerce: revenue surpasses prior-year level

At $€ 1,645$ million, revenue in the eCommerce division in the third quarter of 2024 was $11.4 \%$ up on the prior-year level. This includes a revenue contribution of $€ 77$ million from the acquisition of MNG Kargo. Excluding negative currency effects of $€ 7$ million, revenue was $11.8 \%$ up on the prior-year level.

EBIT in the eCommerce division fell from $€ 55$ million to $€ 50$ million in the third quarter of 2024. This was attributable mainly to higher costs, which resulted partly from increased depreciation and amortization due to continuous investment in the expansion of the networks. The EBIT margin for the third quarter was $3.0 \%$.

KEY FIGURES, ECOMMERCE
6m 9M 2023 9M 2024 $+/-$ Q3 2023 Q3 2024 $+/-$
Revenue 4,490 4,945 10.1 1,477 1,645 11.4
of which Americas 1,553 1,623 4.5 511 541 5.9
Europe 2,452 2,798 14.1 797 923 15.8
Asia 484 525 8.5 168 182 8.3
Consolidation/Other 1 $-1$ $<-100$ 1 $-1$ $<-100$
Profit from operating activities (EBIT) 214 $175^{1}$ $-18.2$ 55 50 $-9.1$
Return on sales (\%) ${ }^{2}$ 4.8 3.5 - 3.7 3.0 -
Operating cash flow 354 381 7.6 127 111 $-12.6$

[^0]
[^0]: 1 Includes the adjusted EBIT figure for Q1 2024, which has been revised from €60 million to €58 million due to the final purchase price allocation for MNG Kargo.
2 EBIT/revenue.

Post \& Parcel Germany: ongoing growth in parcel business supports revenue performance
At €4,053 million, revenue in the Post \& Parcel Germany division was up by 2.4\% year on year in the third quarter of 2024. The Parcel Germany business unit continued to drive this development, while the German postal mail business declined.

EBIT for the Post \& Parcel Germany division in the third quarter of 2024 amounted to €171 million and was thus 17.4\% lower than in the prior-year period. The figure includes a positive net effect from developments in various legal disputes of around €70 million. Revenue growth in parcel business and goods shipping along with higher other operating income were unable to compensate for increased material and staff costs, caused particularly by collective bargaining agreements. Return on sales in the third quarter was $4.2 \%$.

KEY FIGURES, POST \& PARCEL GERMANY
€m 9M 2023 9M 2024 $+1-\%$ Q3 2023 Q3 2024 $+1-\%$
Revenue 12,153 12,479 2.7 3,959 4,053 2.4
of which Post Germany 5,533 5,422 $-2.0$ 1,791 1,724 $-3.7$
Parcel Germany 4,790 5,188 8.3 1,577 1,720 9.1
International 1,761 1,792 1.8 567 583 2.8
Consolidation/Other 69 77 11.6 24 26 8.3
Profit from operating activities (EBIT) 468 495 5.8 207 171 $-17.4$
Return on sales (\%) ${ }^{1}$ 3.9 4.0 - 5.2 4.2 -
Operating cash flow ${ }^{2}$ 915 1,287 40.7 272 273 0.4

1 EBIT/revenue.
2 Prior-year figures adjusted.

POST \& PARCEL GERMANY: REVENUE

€m 9M 2023 9M 2024 $+1-\%$ Q3 2023 Q3 2024 $+1-\%$
Post Germany 5,533 5,422 $-2.0$ 1,791 1,724 $-3.7$
of which Mail Communication 3,736 3,728 $-0.2$ 1,209 1,185 $-2.0$
Dialogue Marketing 1,284 1,183 $-7.9$ 422 379 $-10.2$
Other/Consolidation Post Germany 513 511 $-0.4$ 160 160 0.0
Parcel Germany 4,790 5,188 8.3 1,577 1,720 9.1

POST \& PARCEL GERMANY: VOLUMES

Mail Items (millions) 9M 2023 9M 2024 $+1-\%$ Q3 2023 Q3 2024 $+1-\%$
Post Germany 9,786 8,998 -8.1 3,145 2,800 -11.0
of which Mail Communication 4,371 4,232 -3.2 1,371 1,331 -2.9
Dialogue Marketing 4,772 4,196 -12.1 1,582 1,283 -18.9
Parcel Germany 1,233 1,292 4.8 411 433 5.4

Changes in expected developments

The Board of Management continues to expect that the Group will benefit from a seasonal increase in B2C shipment volumes until the end of the year. However, for B2B and mail volumes there is, based on the trading in October, currently no indication of a better development. Also, in the air freight forwarding business margins stay below expectations, despite some seasonal acceleration of volumes.

Therefore, the Board of Management has decided to adjust the Group EBIT guidance for the year 2024 to more than $€ 5.8$ billion (previously: $€ 6.0-6.6$ billion). The DHL divisions are expected to contribute more than $€ 5.5$ billion (previously: more than $€ 5.7$ billion) and the Post \& Parcel Germany division around $€ 0.8$ billion (previously: more than $€ 0.8$ billion).

In line with market developments, the Group has also reduced the expected capital expenditure (excluding leases) for the full year 2024 to $€ 3.0-3.2$ billion (previously: $€ 3.0-3.6$ billion). Considering a year-to-date increase in working capital, especially in the Global Forwarding, Freight division, and the adjustment of investments, the Group expects a continued high full year 2024 free cash flow (excluding Net M\&A) of now $€ 2.8-3.0$ billion (previously: around $€ 3.0$ billion).

Available market capacities in the Express division, which are influenced by customers and competitors, are posing less of a challenge for our pricing leeway than we anticipated. We therefore currently consider the risk to be low.

In contrast, B2B volumes have not developed as hoped since September 30, 2024. We therefore expect corresponding volume risks to materialize.

We currently assess the aggregate effect of all foreign currency gains and losses both as an opportunity and a risk of low significance for the Group.

The Group's overall opportunity and risk situation did not otherwise change significantly during the third quarter of 2024 compared with the situation described in the 2023 Annual Report and 2024 Half-year Report. Based upon the Group's early-warning system and in the estimation of its Board of Management, there are currently no identifiable risks for the Group that, individually or collectively, cast doubt upon the Group's ability to continue as a going concern. Nor are any such risks apparent in the foreseeable future.

INCOME STATEMENT

JANUARY 1 TO SEPTEMBER 30

9M 2023 9M 2024 Q3 2023 Q3 2024
\%m 60,410 61,482 19,398 20,592
Other operating income 2,052 1,962 753 730
Changes in inventories and work performed and capitalized 251 106 68 21
Material expense $-30,856$ $-31,222$ $-9,921$ $-10,673$
Staff costs $-19,977$ $-20,932$ $-6,494$ $-6,819$
Depreciation, amortization and impairment losses $-3,273$ $-3,474$ $-1,118$ $-1,154$
Other operating expenses $-3,912$ $-3,924$ $-1,310$ $-1,373$
Net income/expenses from investments accounted for using the equity method 8 37 $-4$ 49
Profit from operating activities (EBIT) 4,703 4,035 1,372 1,373
Financial income 290 286 103 79
Finance costs $-756$ $-886$ $-239$ $-289$
Foreign-currency result $-141$ 15 $-26$ $-5$
Net finance costs $-607$ $-585$ $-162$ $-215$
Profit before income taxes 4,096 3,450 1,210 1,158
Income taxes $-1,229$ $-1,035$ $-363$ $-347$
Consolidated net profit for the period 2,867 2,415 847 811
attributable to Deutsche Post AG shareholders 2,696 2,235 807 751
to noncontrolling interests 171 180 40 60
Basic earnings per share (€) 2.26 1.91 0.68 0.64
Diluted earnings per share (€) 2.23 1.88 0.68 0.63

BALANCE SHEET

6m Dec. 31, 20231 Sept. 30, 2024
ASSETS
Intangible assets 14,523 14,560
Property, plant and equipment 30,018 30,046
Investment property 13 12
Investments accounted for using the equity method 104 99
Noncurrent financial assets 1,118 1,269
Other noncurrent assets 388 550
Noncurrent income tax assets 0 10
Deferred tax assets 1,453 1,367
Noncurrent assets 47,617 47,913
Inventories 1,061 1,069
Current financial assets 833 892
Trade receivables 10,537 10,698
Other current assets 2,415 2,651
Current income tax assets 663 949
Cash and cash equivalents 3,649 2,690
Assets held for sale 55 5
Current assets 19,213 18,954
TOTAL ASSETS 66,830 66,867
EQUITY AND LIABILITIES
Issued capital 1,181 1,162
Capital reserves 3,579 3,608
Other reserves $-1,109$ $-1,335$
Retained earnings 18,824 18,827
Equity attributable to Deutsche Post AG shareholders 22,475 22,262
Noncontrolling interests 413 350
Equity 22,888 22,612
Provisions for pensions and similar obligations 2,519 2,226
Deferred tax liabilities 428 436
Other noncurrent provisions 2,062 2,239
Noncurrent financial liabilities 17,939 17,811
Other noncurrent liabilities 280 277
Noncurrent income tax liabilities 392 444
Noncurrent provisions and liabilities 23,620 23,433
Current provisions 1,079 973
Current financial liabilities 4,779 5,597
Trade payables 8,479 7,765
Other current liabilities 5,536 6,019
Current income tax liabilities 449 468
Liabilities associated with assets held for sale 0 0
Current provisions and liabilities 20,322 20,822
TOTAL EQUITY AND LIABILITIES 66,830 66,867

1 Prior-year figures adjusted due to the final purchase price allocations in the 2023 fiscal year. For an explanation of the details, see note 4 of the 2024 Half-year Report.

CASH FLOW STATEMENT

JANUARY 1 TO SEPTEMBER 30

9M 2023 9M 2024 Q3 2023 Q3 2024
Consolidated net profit for the period 2,867 2,415 847 811
+ Income taxes 1,229 1,035 363 347
+ Net finance costs 607 585 162 215
= Profit from operating activities (EBIT) 4,703 4,035 1,372 1,373
+ Depreciation, amortization and impairment losses 3,273 3,474 1,118 1,154
+ Net cost/net income from disposal of noncurrent assets $-29$ $-54$ $-25$ $-52$
+ Other noncash income and expense $-170$ $-197$ $-37$ $-79$
+ Change in provisions $-343$ $-3$ $-177$ $-79$
+ Change in other noncurrent assets and liabilities $-43$ $-55$ $-17$ $-29$
+ Dividend received 24 2 17 2
+ Income taxes paid $-1,280$ $-1,190$ $-385$ $-378$
= Net cash from operating activities before changes in working capital 6,135 6,012 1,866 1,912
+ Change in inventories $-143$ $-19$ $-29$ 18
+ Change in receivables and other current assets 2,014 $-661$ 408 96
+ Change in liabilities and other items $-1,228$ 323 289 17
= Net cash from operating activities 6,778 5,655 2,534 2,043
Subsidiaries and other business units 0 $-1$ 0 $-1$
+ Property, plant and equipment and intangible assets 105 159 48 37
+ Investments accounted for using the equity method and other investments 30 53 30 53
+ Other noncurrent financial assets 164 154 61 52
= Proceeds from disposal of noncurrent assets 299 365 139 141
Subsidiaries and other business units $-1$ $-2$ 0 $-2$
+ Property, plant and equipment and intangible assets $-2,448$ $-1,938$ $-846$ $-641$
+ Investments accounted for using the equity method and other investments $-21$ $-42$ $-13$ $-11$
+ Other noncurrent financial assets $-2$ $-7$ 0 $-1$
= Cash paid to acquire noncurrent assets $-2,472$ $-1,989$ $-859$ $-655$
+ Interest received 196 174 64 59
+ Change in current financial assets 1,000 $-34$ 97 $-23$
= Net cash used in investing activities $-977$ $-1,484$ $-559$ $-478$
Proceeds from issuance of noncurrent financial liabilities 501 991 500 1
+ Repayments of noncurrent financial liabilities $-1,954$ $-1,951$ $-739$ $-682$
+ Change in current financial liabilities $-41$ $-84$ $-171$ $-251$
+ Other financing activities $-195$ $-55$ $-63$ $-28$
+ Proceeds from transactions with noncontrolling interests 1 0 1 0
+ Cash paid for transactions with noncontrolling interests $-10$ $-6$ $-5$ $-2$
+ Dividend paid to Deutsche Post AG shareholders $-2,205$ $-2,169$ 0 0
+ Dividend paid to noncontrolling-interest holders $-272$ $-239$ $-252$ $-224$
+ Purchase of treasury shares $-833$ $-914$ $-470$ $-269$
+ Interest paid $-464$ $-636$ $-171$ $-216$
= Net cash used in financing activities $-5,472$ $-5,063$ $-1,370$ $-1,671$

Continuation on the next page

Net change in cash and cash equivalents 329 -892 605 -106
+ Effect of changes in exchange rates on cash and cash equivalents -212 -67 16 -57
+ Changes in cash and cash equivalents associated with assets held for sale -1 0 -1 0
+ Cash and cash equivalents at beginning of reporting period 3,790 3,649 3,286 2,853
= Cash and cash equivalents at end of reporting period 3,906 2,690 3,906 2,690

Segment reporting

The vehicle fleet used by Post \& Parcel Germany was transferred from Group Functions to the Post \& Parcel Germany segment at the beginning of January 2024. The prior-year figures have been adjusted accordingly.

SEGMENTS BY DIVISION

Express Global Forwarding,
Freight ${ }^{1}$
Supply Chain eCommerce ${ }^{1}$
January 1 to September 30 2023 2024 2023 2024 2023 2024 2023 2024
External revenue 17,890 17,844 13,823 13,641 12,496 13,009 4,386 4,824
Internal revenue 398 445 917 893 101 103 104 121
Total revenue 18,288 18,289 14,740 14,534 12,597 13,112 4,490 4,945
Profit from operating activities (EBIT) 2,471 2,001 1,083 819 741 809 214 175
of which: net income/expenses from investments accounted for using the equity method 2 0 0 $-3$ $-3$ 0 0 0
Segment assets ${ }^{2}$ 20,649 20,133 11,363 11,952 10,430 10,894 3,398 3,576
of which: investments accounted for using the equity method 9 8 13 10 17 15 25 41
Segment liabilities ${ }^{2}$ 4,824 4,547 3,906 3,806 3,836 3,921 1,000 909
Net segment assets/liabilities ${ }^{2}$ 15,825 15,586 7,457 8,146 6,594 6,973 2,398 2,667
Capex (assets acquired) 696 573 123 107 344 362 290 198
Capex (right-of-use assets) 846 740 178 133 577 701 147 196
Total capex 1,542 1,313 301 240 921 1,063 437 394
Depreciation and amortization 1,302 1,352 245 263 700 768 162 208
Impairment losses 0 0 0 0 6 2 0 0
Total depreciation, amortization and impairment losses 1,302 1,352 245 263 706 770 162 208
Net cash from (+)/used in (-) operating activities 3,732 3,304 1,847 283 947 1,406 354 381
Employees ${ }^{3}$ 111,731 109,266 46,613 45,645 181,421 185,257 32,373 39,718
Third quarter
External revenue 5,764 5,897 4,122 4,746 4,223 4,391 1,442 1,606
Internal revenue 121 166 295 291 35 36 35 39
Total revenue 5,885 6,063 4,417 5,037 4,258 4,427 1,477 1,645
Profit from operating activities (EBIT) 667 686 306 277 242 274 55 50
of which: net income/expenses from investments accounted for using the equity method 1 0 0 $-2$ 0 1 0 0
Capex (assets acquired) 272 217 43 36 134 116 132 85
Capex (right-of-use assets) 455 297 56 39 265 154 67 46
Total capex 727 514 99 75 399 270 199 131
Depreciation and amortization 442 438 83 87 240 261 57 72
Impairment losses 0 0 0 0 4 0 0 0
Total depreciation, amortization and impairment losses 442 438 83 87 244 261 57 72
Net cash from (+)/used in (-) operating activities 1,368 1,177 505 73 494 730 127 111

[^0]
[^0]: 1 Prior-year figures adjusted due to the final purchase price allocations in the 2023 fiscal year. For an explanation of the details, see note 4 of the 2024 Half-year Report.
2 As of December 31, 2023, and September 30, 2024.
3 Average FTEs.
4 Prior-period amounts adjusted; the vehicle fleet used by Post \& Parcel Germany was transferred from Group Functions to the Post \& Parcel Germany segment (EBIT remained unchanged).
5 Including rounding.

SEGMENTS BY DIVISION

Post \& Parcel Germany $^{4}$ Group Functions ${ }^{4}$ Consolidation $^{1,4,5}$ Group $^{1}$
January 1 to September 30 2023 2024 2023 2024 2023 2024 2023 2024
External revenue 11,794 12,155 20 9 1 0 60,410 61,482
Internal revenue 359 324 1,319 1,413 $-3,198$ $-3,299$ 0 0
Total revenue 12,153 12,479 1,339 1,422 $-3,197$ $-3,299$ 60,410 61,482
Profit from operating activities (EBIT) 468 495 $-276$ $-263$ 2 $-1$ 4,703 4,035
of which: net income/expenses from investments accounted for using the equity method 0 0 8 39 1 1 8 37
Segment assets ${ }^{2}$ 9,585 9,453 4,226 4,124 $-63$ $-65$ 59,588 60,067
of which: investments accounted for using the equity method 0 0 39 25 1 $-1$ 104 98
Segment liabilities ${ }^{2}$ 2,598 2,676 1,567 1,564 $-44$ $-45$ 17,687 17,378
Net segment assets/liabilities ${ }^{2}$ 6,987 6,777 2,659 2,560 $-19$ $-20$ 41,901 42,689
Capex (assets acquired) 608 487 87 80 0 $-1$ 2,148 1,806
Capex (right-of-use assets) 127 88 396 281 0 0 2,271 2,139
Total capex 735 575 483 361 0 $-1$ 4,419 3,945
Depreciation and amortization 429 463 428 419 1 $-1$ 3,267 3,472
Impairment losses 0 0 0 0 0 0 6 2
Total depreciation, amortization and impairment losses 429 463 428 419 1 $-1$ 3,273 3,474
Net cash from (+)/used in (-) operating activities 915 1,287 161 158 $-1,178$ $-1,164$ 6,778 5,655
Employees ${ }^{3}$ 158,350 155,577 14,004 13,997 1 $-1$ 544,493 549,459
Third quarter
External revenue 3,843 3,950 4 2 0 0 19,398 20,592
Internal revenue 116 103 414 445 $-1,016$ $-1,080$ 0 0
Total revenue 3,959 4,053 418 447 $-1,016$ $-1,080$ 19,398 20,592
Profit from operating activities (EBIT) 207 171 $-105$ $-88$ 0 3 1,372 1,373
of which: net income/expenses from investments accounted for using the equity method 0 0 $-6$ 48 1 2 $-4$ 49
Capex (assets acquired) 264 212 26 25 0 $-1$ 871 690
Capex (right-of-use assets) 83 38 99 73 0 $-1$ 1,025 646
Total capex 347 250 125 98 0 $-2$ 1,896 1,336
Depreciation and amortization 148 158 143 140 1 $-2$ 1,114 1,154
Impairment losses 0 0 0 0 0 0 4 0
Total depreciation, amortization and impairment losses 148 158 143 140 1 $-2$ 1,118 1,154
Net cash from (+)/used in (-) operating activities 272 273 138 51 $-370$ $-372$ 2,534 2,043

[^0]
[^0]: 1 Prior-year figures adjusted due to the final purchase price allocations in the 2023 fiscal year. For an explanation of the details, see note 4 of the 2024 Half-year Report.
2 As of December 31, 2023, and September 30, 2024.
3 Average FTEs.
4 Prior-period amounts adjusted; the vehicle fleet used by Post \& Parcel Germany was transferred from Group Functions to the Post \& Parcel Germany segment (EBIT remained unchanged).
5 Including rounding.

Reconciliation

Km 9M 2023 9M 2024
Total income of reported segments 4,977 4,299
Group Functions $-276$ $-263$
Reconciliation to Group/Consolidation 2 $-1$
Profit from operating activities (EBIT) 4,703 4,035
Net finance costs $-607$ $-585$
Profit before income taxes 4,096 3,450
Income taxes $-1,229$ $-1,035$
Consolidated net profit for the period 2,867 2,415

Earnings per share

BASIC EARNINGS PER SHARE

Consolidated net profit for the period attributable to
Deutsche Post AG shareholders
€m 9M 2023 9M 2024
2,696 2,235
Weighted average number of shares outstanding Number $1,190,953,261$ $1,169,307,803$
Basic earnings per share 2.36 1.91

DILUTED EARNINGS PER SHARE

Consolidated net profit for the period attributable to Deutsche Post AG shareholders €m 2,696 2,235
€m 6 6
Less income taxes €m 1 2
Adjusted consolidated net profit for the period attributable to Deutsche Post AG shareholders €m 2,701 2,239
Weighted average number of shares outstanding Number $1,190,953,261$ $1,169,307,803$
Potentially dilutive shares Number 22,732,805 21,714,326
Weighted average number of shares for diluted earnings Number $1,213,686,066$ $1,191,022,129$
Diluted earnings per share 2.23 1.88

Changes in issued capital and treasury shares

2023 2024
Issued capital
Balance as of January 1 1,239 1,239
Capital reduction through retirement of treasury shares 0 $-39$
Balance as of December 31/September 30 1,239 1,200
Treasury shares
Balance as of January 1 $-40$ $-58$
Purchase of treasury shares/retirement of treasury shares $-24$ 17
Issue/sale of treasury shares 6 3
Balance as of December 31/September 30 $-58$ $-38$
Total as of December 31/September 30 1,181 1,162

CONTACT

Deutsche Post AG
Headquarters
53250 Bonn
Germany
[email protected]
[email protected]

Publication

Published on November 5, 2024.

The English version of the Quarterly Statement as of September 30, 2024, of DHL Group constitutes a translation of the original German version. Only the German version is legally binding, insofar as this does not conflict with legal provisions in other countries.

Deutsche Post Corporate Language Services et al.

Basis of reporting

The document at hand is a quarterly statement pursuant to section 53 Börsenordnung für die Frankfurter Wertpapierbörse (BörsO FWB - exchange rules for the Frankfurt Stock Exchange), as amended on November 18, 2019. It is not an interim report as defined in International Accounting Standard (IAS) No. 34. The accounting policies applied to this quarterly statement generally derive from the same accounting policies as used in the preparation of the consolidated financial statements for the 2023 fiscal year, with the exception of the new pronouncements required to be applied. However, those standards had no material impact on the financial statements.

Forward-looking statements

This quarterly statement contains forward-looking statements that are not historical facts. They also include statements concerning assumptions and expectations that are based upon current plans, estimates and projections, and the information available to Deutsche Post AG at the time this statement was completed. Instead, they depend on a number of factors and are subject to various risks and uncertainties (particularly those described in the "Changes in expected developments" section) and are based on assumptions that may prove to be inaccurate. It is possible that the actual performance and results may differ from the forward-looking statements made in this quarterly statement. Deutsche Post AG undertakes no obligation to update the forwardlooking statements contained in this statement except as required by applicable law. If Deutsche Post AG updates one or more forward-looking statements, no assumption can be made that the statement(s) in question or other forward-looking statements will be updated regularly.

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