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Deutsche Post AG
Quarterly Report • Aug 2, 2024
111_10-q_2024-08-02_5d6084ec-4eb2-4371-af24-40c50d389696.pdf
Quarterly Report
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2024 HALF-YEAR REPORT
1 INTERIM GROUP MANAGEMENT REPORT
1 General information
2 Report on economic position
11 Expected developments, opportunities and risks
13 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
13 Income statement
14 Statement of comprehensive income
15 Balance sheet
16 Cash flow statement
17 Statement of changes in equity
18 Selected explanatory notes
39 Responsibility statement
40 Review report
41 FINANCIAL CALENDAR
41 CONTACT
SELECTED KEY FIGURES
| H1 2023 | H1 2024 | $+/-$ \% | Q2 2023 | Q3 2024 | $+/-$ \% | |
|---|---|---|---|---|---|---|
| Revenue | €m | 41,012 | 40,890 | $-0.3$ | 20,094 | 20,639 |
| Profit from operating activities (EBIT) | €m | 3,331 | 2,662 | $-20.1$ | 1,693 | 1,351 |
| Return on sales ${ }^{1}$ | \% | 8.1 | 6.5 | - | 8.4 | 6.5 |
| EBIT after asset charge (EAC) | €m | 1,607 | 830 | $-48.4$ | 828 | 428 |
| Consolidated net profit for the period ${ }^{2}$ | €m | 1,889 | 1,484 | $-21.4$ | 978 | 744 |
| Free cash flow | €m | 1,433 | 952 | $-33.6$ | 450 | 344 |
| Net debt ${ }^{3}$ | €m | 17,739 | 19,885 | 12.1 | - | - |
| Earnings per share ${ }^{4}$ | € | 1.58 | 1.27 | $-19.6$ | 0.82 | 0.64 |
| Number of employees ${ }^{5}$ | 586,404 | 591,172 | 0.8 | - | - |
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.
GENERAL INFORMATION
Organizational changes
No material changes were made to the Group's organizational structure during the reporting period.
In June 2024, the mandate of Tim Scharwath as a member of the Board of Management and his contract were renewed until May 2030.
Research and development
As a service provider, DHL Group does not engage in research and development activities in the narrower sense and therefore has no significant expenses to report in this connection.
REPORT ON ECONOMIC POSITION
Economic parameters
The following data describing the general economic parameters of the global economy stem from S\&P Global Market Intelligence (S\&P Global).
The modestly increasing global growth momentum at the beginning of 2024 leveled off again in the second quarter. Geopolitical instability induced by wars, tensions between Western countries and China and the fragmentation of Europe's political landscape is restraining trade, investment activity and consumer confidence in many countries. The anticipated boost of purchasing power for consumer spending has so far primarily benefited the service sector, while the majority of industrial companies still report a weak inflow of new orders.
In June, the European Central Bank cautiously began to ease monetary policy, whereas the US Federal Reserve opted to wait, given the more robust US economy and higher core inflation than in Europe.
In the end markets relevant for DHL Group, B2B volume development was negatively impacted by the development of customers' inventories in addition to the general economic parameters. In contrast, B2C volumes in parcel business continued to prove resilient. This confirms the structural trend of a shift in consumption toward e-commerce even in a weaker economic environment.
Significant events
As part of the completed fourth tranche of the 2022-2025 share buyback program and the fifth tranche that has now begun, we repurchased a further 14.1 million shares with a value of $€ 594$ million in the first half of 2024.
On March 25, 2024, we issued a bond with a volume of $€ 1$ billion and a term through 2036. The proceeds will be used, among other things, to refinance existing financial liabilities.
By way of a resolution of the Board of Management dated May 2, 2024, the issued capital was reduced by $€ 39$ million, and the corresponding shares were retired. The treasury shares had been acquired as part of the existing share buyback programs. This was entered in the commercial register on May 22, 2024.
Results of operations
SELECTED INDICATORS FOR RESULTS OF OPERATIONS
| H1 2023 | H1 2024 | Q2 2023 | Q2 2024 | |
|---|---|---|---|---|
| Revenue | €m | 41,012 | 40,890 | 20,094 |
| Profit from operating activities (EBIT) | €m | 3,331 | 2,662 | 1,693 |
| Return on sales ${ }^{1}$ | \% | 8.1 | 6.5 | 8.4 |
| EBIT after asset charge (EAC) | €m | 1,607 | 830 | 828 |
| Consolidated net profit for the period ${ }^{2}$ | €m | 1,889 | 1,484 | 978 |
| Earnings per share ${ }^{3}$ | € | 1.58 | 1.27 | 0.82 |
[^0]
[^0]: 1 EBIT/revenue.
2 After deduction of noncontrolling interests.
3 Basic earnings per share.
Changes to the portfolio
The portfolio has not undergone any noteworthy changes.
Group revenue at $€ 41$ billion
At $€ 40,890$ million, Group revenue in the first half of 2024 almost reached the previous year's level of $€ 41,012$ million. Negative currency effects reduced it by $€ 137$ million. The proportion of revenue generated abroad changed from $74.7 \%$ to $74.0 \%$. In the second quarter of 2024, revenue rose from $€ 20,094$ million in the previous year to $€ 20,639$ million. This figure was also curtailed by negative currency effects in the amount of $€ 28$ million. At $€ 1,232$ million, other operating income fell short of the prior-year period ( $€ 1,299$ million). This was mainly due to reduced income from currency translation.
Higher staff costs due to wage and salary increases
Material expense decreased by $€ 386$ million to $€ 20,549$ million, largely due to lower transport costs in the Global Forwarding, Freight division. Wage and salary increases along with the increased number of employees raised staff costs from $€ 13,483$ million to $€ 14,113$ million. Depreciation, amortization and impairment losses were up by $€ 165$ million to $€ 2,320$ million. At $€ 2,551$ million, other operating expenses were below the prior-year period ( $€ 2,602$ million). Lower expenses from currency translation reduced the total. Net income/expenses from investments accounted for using the equity method changed from $€ 12$ million in the previous year to $€-12$ million in the reporting period. The prior-year figure primarily included income from the measurement of our equity investment in the Israeli company Global-E Online Ltd.
Consolidated EBIT decreases by 20.1\%
In the first half of 2024, profit from operating activities (EBIT) declined by $€ 669$ million to $€ 2,662$ million. In the second quarter of 2024, it fell from $€ 1,693$ million to $€ 1,351$ million. At $€ 370$ million, net finance costs were improved compared with the previous year ( $€ 445$ million). This was primarily due to a positive foreign-currency result. Profit before income taxes fell by $€ 594$ million to $€ 2,292$ million. As a consequence, income taxes decreased by $€ 178$ million to $€ 688$ million. The tax rate was $30 \%$, as in the previous year.
Consolidated net profit for the period falls in line with EBIT
Consolidated net profit for the period decreased significantly in the first half of 2024 from $€ 2,020$ million to $€ 1,604$ million. Of this amount, $€ 1,484$ million is attributable to Deutsche Post AG shareholders and $€ 120$ million to noncontrolling interest holders. Earnings per share fell from $€ 1.58$ to $€ 1.27$ (basic) and from $€ 1.55$ to $€ 1.25$ (diluted).
EBIT after asset charge (EAC) declines
EAC declined from $€ 1,607$ million to $€ 830$ million in the first half of 2024, primarily due to the decrease in EBIT. The imputed asset charge rose slightly, primarily due to investments in property, plant and equipment in all divisions.
EBIT AFTER ASSET CHARGE (EAC)
| $\mathbf{€ m}$ | H1 2023 | H1 2024 | $+/-$ \% |
|---|---|---|---|
| EBIT | 3,331 | 2,662 | -20.1 |
| - Asset charge | -1,724 | -1,832 | -6.3 |
| $\boldsymbol{\times E A C}$ | $\mathbf{1 , 6 0 7}$ | $\mathbf{8 3 0}$ | $\mathbf{- 4 8 . 4}$ |
Divisions
Express: continued yield and cost management
Revenue in the Express division decreased by $1.4 \%$ to $€ 12,226$ million in the first half of 2024. This includes negative currency effects amounting to $€ 90$ million, as well as lower fuel surcharges. Excluding currency effects and fuel surcharges, first-half revenue slightly exceeded the prior-year figure with a rise of $0.2 \%$. The ongoing sluggish market development caused per-day revenues and shipment volumes in the TDI product line to fall.
We continue to counter this trend by managing costs and optimizing network capacity. We are responding to persistent inflation with general price increases combined with effective yield management. In the first half of 2024, EBIT in the Express division decreased by $27.1 \%$ to $€ 1,315$ million. The EBIT margin was $10.8 \%$. In the second quarter of 2024, EBIT was $€ 683$ million, $24.2 \%$ below the prior-year figure.
KEY FIGURES, EXPRESS
| $\mathbf{€ m}$ | H1 2023 | H1 2024 | $+/-$ | Q2 2023 | Q3 2024 | $+/-$ |
|---|---|---|---|---|---|---|
| Revenue | 12,403 | 12,226 | $-1.4$ | 6,122 | 6,220 | 1.6 |
| of which Europe | 5,548 | 5,533 | $-0.3$ | 2,732 | 2,777 | 1.6 |
| Americas | 2,964 | 2,883 | $-2.7$ | 1,492 | 1,483 | $-0.6$ |
| Asia Pacific | 4,327 | 4,075 | $-5.8$ | 2,174 | 2,114 | $-2.8$ |
| MEA (Middle East and Africa) | 757 | 729 | $-3.7$ | 378 | 368 | $-2.6$ |
| Consolidation/Other | $-1,193$ | $-994$ | 16.7 | $-654$ | $-522$ | 20.2 |
| Profit from operating activities (EBIT) | 1,804 | 1,315 | $-27.1$ | 901 | 683 | $-24.2$ |
| Return on sales (\%) ${ }^{1}$ | 14.5 | 10.8 | - | 14.7 | 11.0 | - |
| Operating cash flow | 2,364 | 2,127 | $-10.0$ | 1,141 | 1,003 | $-12.1$ |
1 EBIT/revenue.
EXPRESS: REVENUE BY PRODUCT
| $\mathbf{€ m}$ per day $^{2}$ | H1 2023 | H1 2024 | $+/-$ \% | Q2 2023 | Q3 2024 | $+/-$ \% |
|---|---|---|---|---|---|---|
| Time Definite International (TDI) | 76.7 | 74.5 | $-2.9$ | 77.7 | 76.6 | $-1.4$ |
| Time Definite Domestic (TDD) | 6.2 | 6.3 | 1.6 | 6.2 | 6.4 | 3.2 |
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) | H1 2023 | H1 2024 | $+/-$ \% | Q2 2023 | Q3 2024 | $+/-$ \% |
|---|---|---|---|---|---|---|
| Time Definite International (TDI) | 1,093 | 1,069 | $-2.2$ | 1,124 | 1,089 | $-3.1$ |
| Time Definite Domestic (TDD) | 502 | 477 | $-5.0$ | 491 | 482 | $-1.8$ |
Global Forwarding, Freight: drop in revenue due to lower freight rates
Revenue in the Global Forwarding, Freight division decreased by 8.0\% to $€ 9,497$ million in the first half of 2024 due to lower freight rates. Excluding negative currency effects of $€ 60$ million, revenue was down $7.4 \%$ on the prior-year level. In the second quarter of 2024, revenue slightly exceeded the prior-year figure with a rise of $0.8 \%$ thanks to higher volumes and increasing freight rates. Revenue in the Global Forwarding business unit decreased by 10.5\% to $€ 6,914$ million in the first half of 2024. Without taking negative currency effects of $€ 57$ million into account, the decrease was $9.8 \%$. Gross profit in the Global Forwarding business unit was down from the previous year by $13.6 \%$ to $€ 1,707$ million.
Air freight volumes rose by $5.2 \%$ in the first half of 2024, with growth primarily on trade lanes between Asia and Europe. Air freight revenues dropped by $7.1 \%$ and gross profit by $21.4 \%$. In the second quarter of 2024, revenue was up $3.6 \%$ and gross profit down $16.9 \%$ on the prior-year level. Ocean freight volumes rose by $6.5 \%$ year on year in the first half, with growth particularly on trade lanes from Asia. First-half ocean freight revenue dropped by $14.5 \%$ and gross profit by $21.5 \%$. The second quarter of 2024 saw corresponding declines of $1.4 \%$ and $15.9 \%$, respectively.
Revenue in the Freight business unit decreased slightly in the first half of 2024 and was down $0.7 \%$ at $€ 2,636$ million. We saw a fall in volumes of $7.3 \%$, which was partially compensated for by price effects. Gross profit in this business unit fell by $4.1 \%$ to $€ 662$ million. In the second quarter of 2024, revenue rose by $2.1 \%$, while gross profit fell by $3.7 \%$.
EBIT in the Global Forwarding, Freight division was down by 30.2\% in the first half of 2024 to $€ 542$ million. The EBIT margin was $5.7 \%$. EBIT in the division thus corresponds to $22.9 \%$ of gross profit and $28.3 \%$ for the Global Forwarding business unit. In the second quarter of 2024, EBIT in the division stood at $€ 279$ million.
KEY FIGURES, GLOBAL FORWARDING, FREIGHT
| $\mathbf{€ m}$ | H1 2023 | H1 2024 | $+/-$ | Q2 2023 | Q2 2024 | $+/-$ |
|---|---|---|---|---|---|---|
| Revenue | 10,323 | 9,497 | $-8.0$ | 4,839 | 4,880 | 0.8 |
| of which Global Forwarding | 7,728 | 6,914 | $-10.5$ | 3,570 | 3,581 | 0.3 |
| Freight | 2,654 | 2,636 | $-0.7$ | 1,298 | 1,325 | 2.1 |
| Consolidation/Other | $-59$ | $-53$ | 10.2 | $-29$ | $-26$ | 10.3 |
| Profit from operating activities (EBIT) | 777 | 542 | $-30.2$ | 388 | 279 | $-28.1$ |
| Return on sales (\%) ${ }^{1}$ | 7.5 | 5.7 | - | 8.0 | 5.7 | - |
| Operating cash flow | 1,342 | 210 | $-84.4$ | 485 | 242 | $-50.1$ |
1 EBIT/revenue.
GLOBAL FORWARDING: REVENUE
| $\mathbf{€ m}$ | H1 2023 | H1 2024 | $+/-$ | Q2 2023 | Q2 2024 | $+/-$ |
|---|---|---|---|---|---|---|
| Air freight | 3,202 | 2,975 | $-7.1$ | 1,477 | 1,530 | 3.6 |
| Ocean freight | 3,172 | 2,711 | $-14.5$ | 1,429 | 1,409 | $-1.4$ |
| Other | 1,354 | 1,228 | $-9.3$ | 664 | 642 | $-3.3$ |
| Total | 7,728 | 6,914 | $-10.5$ | 3,570 | 3,581 | 0.3 |
GLOBAL FORWARDING: VOLUMES
| Thousands | H1 2023 | H1 2024 | $+/-$ | Q2 2023 | Q2 2024 | $+/-$ | |
|---|---|---|---|---|---|---|---|
| Air freight exports | tons | 829 | 872 | 5.2 | 415 | 437 | 5.3 |
| Ocean freight | TEU $^{1}$ | 1,525 | 1,624 | 6.5 | 796 | 847 | 6.4 |
1 Twenty-foot equivalent units.
Supply Chain: continued strong revenue and earnings trend in the first half
Revenue in the Supply Chain division grew by $4.1 \%$ to $€ 8,685$ million in the first half of 2024. Excluding positive currency effects of $€ 2$ million, the increase was also $4.1 \%$. New business, contract renewals and expanding e-commerce business contributed to higher revenue in almost all regions and sectors. A slight drop in revenue in the Asia Pacific region was due to negative currency effects. In the second quarter of 2024, revenue in the Supply Chain division rose by $2.8 \%$ to $€ 4,352$ million. Excluding positive currency effects of $€ 5$ million, the increase was $2.7 \%$.
In the first half of 2024, the Supply Chain division concluded additional contracts with a volume of $€ 5.0$ billion. Alongside the Energy, Retail, and Life Sciences \& Healthcare sectors, e-fulfilment solutions 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 $7.2 \%$ to $€ 535$ million in the first half of 2024. The EBIT margin for the first half of the year was $6.2 \%$. In the second quarter of 2024, EBIT in the Supply Chain division stood at $€ 279$ million.
KEY FIGURES, SUPPLY CHAIN
| $\mathbf{~} \mathbf{~ m ~}$ | H1 2023 | H1 2024 | $+/-$ | Q2 2023 | Q2 2024 | $+/-$ |
|---|---|---|---|---|---|---|
| Revenue | 8,339 | 8,685 | 4.1 | 4,232 | 4,352 | 2.8 |
| of which EMEA (Europe, Middle East and Africa) | 3,660 | 3,828 | 4.6 | 1,832 | 1,941 | 5.9 |
| Americas | 3,445 | 3,615 | 4.9 | 1,785 | 1,812 | 1.5 |
| Asia Pacific | 1,259 | 1,252 | $-0.6$ | 627 | 603 | $-3.8$ |
| Consolidation/Other | $-25$ | $-10$ | 60.0 | $-12$ | $-4$ | 66.7 |
| Profit from operating activities (EBIT) | 499 | 535 | 7.2 | 272 | 279 | 2.6 |
| Return on sales (\%) ${ }^{1}$ | 6.0 | 6.2 | - | 6.4 | 6.4 | - |
| Operating cash flow | 453 | 676 | 49.2 | 292 | 275 | $-5.8$ |
[^0]
[^0]: 1 EBIT/revenue.
eCommerce: revenue exceeds prior-year level
The eCommerce division generated revenue of $€ 3,300$ million in the first half of 2024, up $9.5 \%$ on the prior-year level. This includes a revenue contribution of $€ 160$ million from the acquisition of MNG Kargo. Excluding positive currency effects of $€ 15$ million, revenue was $9.0 \%$ up on the prior-year level. In the second quarter of 2024, revenue in the eCommerce division rose by $10.5 \%$ to $€ 1,667$ million.
EBIT in the eCommerce division fell from $€ 159$ million to $€ 125$ million in the first half of 2024. This was attributable mainly to higher costs, which resulted partly from increased depreciation, amortization and impairment losses due to continuous investment in the expansion of the networks. The EBIT margin for the first half of the year was 3.8\%. EBIT in the eCommerce division stood at $€ 67$ million in the second quarter of 2024.
KEY FIGURES, ECOMMERCE
| $\mathbf{€ m}$ | H1 2023 | H1 2024 | $+/-$ | Q2 2023 | Q3 2024 | $+/-$ |
|---|---|---|---|---|---|---|
| Revenue | 3,013 | 3,300 | 9.5 | 1,508 | 1,667 | 10.5 |
| of which Americas | 1,042 | 1,082 | 3.8 | 518 | 541 | 4.4 |
| Europe | 1,655 | 1,875 | 13.3 | 831 | 952 | 14.6 |
| Asia | 316 | 343 | 8.5 | 159 | 173 | 8.8 |
| Consolidation/Other | 0 | 0 | - | 0 | 1 | 100.0 |
| Profit from operating activities (EBIT) | 159 | $125^{1}$ | $-21.4$ | 78 | 67 | $-14.1$ |
| Return on sales (\%) ${ }^{2}$ | 5.3 | 3.8 | - | 5.2 | 4.0 | - |
| Operating cash flow | 227 | 270 | 18.9 | 90 | 120 | 33.3 |
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 earnings performance
At $€ 8,426$ million, revenue in the Post \& Parcel Germany division was up by $2.8 \%$ year on year in the first half of 2024. The Parcel Germany business unit continued to drive this positive development. As expected, German letter mail business declined, though the European elections, among other factors, somewhat slowed this trend. In the second quarter of 2024, revenue in the division rose by $4.1 \%$ to $€ 4,160$ million.
EBIT for the Post \& Parcel Germany division in the first half of 2024 amounted to $€ 324$ million and was thus $24.1 \%$ higher than in the prior-year period, which was hit by additional staff costs due to strikes. Higher revenues in parcel business and goods shipping more than offset increased material costs and additional pressure from collective bargaining agreements. Return on sales in the first half of 2024 was 3.8\%. At $€ 130$ million, second-quarter EBIT was $5.7 \%$ up on the prior-year quarter. This was due to revenue increases in parcel business and goods shipping as well as higher operating income. Higher material and staff costs, caused particularly by collective bargaining agreements, were slightly outweighed. The return on sales was $3.1 \%$.
KEY FIGURES, POST \& PARCEL GERMANY
| $\mathbf{€ m}$ | H1 2023 | H1 2024 | $+/-$ | Q2 2023 | Q3 2024 | $+/-$ |
|---|---|---|---|---|---|---|
| Revenue | 8,194 | 8,426 | 2.8 | 3,996 | 4,160 | 4.1 |
| of which Post Germany | 3,742 | 3,698 | $-1.2$ | 1,780 | 1,790 | 0.6 |
| Parcel Germany | 3,213 | 3,468 | 7.9 | 1,609 | 1,746 | 8.5 |
| International | 1,194 | 1,209 | 1.3 | 583 | 598 | 2.6 |
| Consolidation/Other | 45 | 51 | 13.3 | 24 | 26 | 8.3 |
| Profit from operating activities (EBIT) | 261 | 324 | 24.1 | 123 | 130 | 5.7 |
| Return on sales (\%) ${ }^{1}$ | 3.2 | 3.8 | - | 3.1 | 3.1 | - |
| Operating cash flow ${ }^{2}$ | 643 | 1,014 | 57.7 | 276 | 490 | 77.5 |
[^0]
[^0]: 1 EBIT/revenue.
2 Prior-year figures adjusted.
POST \& PARCEL GERMANY: REVENUE
| $\mathbf{K m}$ | H1 2023 | H1 2024 | $+/-$ | Q2 2023 | Q2 2024 | $+/-$ |
|---|---|---|---|---|---|---|
| Post Germany | 3,742 | 3,698 | $-1.2$ | 1,780 | 1,790 | 0.6 |
| of which Mail Communication | 2,527 | 2,543 | 0.6 | 1,197 | 1,231 | 2.8 |
| Dialogue Marketing | 862 | 804 | $-6.7$ | 413 | 389 | $-5.8$ |
| Other/Consolidation Post Germany | 353 | 351 | $-0.6$ | 170 | 170 | - |
| Parcel Germany | 3,213 | 3,468 | 7.9 | 1,609 | 1,746 | 8.5 |
POST \& PARCEL GERMANY: VOLUMES
| Mail items (millions) | H1 2023 | H1 2024 | $+/-$ | Q2 2023 | Q2 2024 | $+/-$ |
|---|---|---|---|---|---|---|
| Post Germany | 6,641 | 6,198 | $-6.7$ | 3,149 | 2,935 | $-6.8$ |
| of which Mail Communication | 3,000 | 2,901 | $-3.3$ | 1,402 | 1,378 | $-1.7$ |
| Dialogue Marketing | 3,190 | 2,913 | $-8.7$ | 1,517 | 1,371 | $-9.6$ |
| Parcel Germany | 822 | 859 | 4.5 | 416 | 435 | 4.6 |
Financial position
SELECTED CASH FLOW INDICATORS
| $\mathbf{K m}$ | H1 2023 | H1 2024 | Q2 2023 | Q2 2024 |
|---|---|---|---|---|
| Cash and cash equivalents as of June 30 | 3,286 | 2,853 | 3,286 | 2,853 |
| Net change in cash and cash equivalents | $-276$ | $-786$ | $-1,566$ | $-1,763$ |
| Net cash from operating activities | 4,244 | 3,612 | 1,849 | 1,611 |
| Net cash used in investing activities | $-418$ | $-1,006$ | $-538$ | $-409$ |
| Net cash used in financing activities | $-4,102$ | $-3,392$ | $-2,877$ | $-2,965$ |
Solid liquidity situation
As of June 30, 2024, the Group reported centrally available liquidity in the amount of $€ 0.5$ 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 $€ 1.7$ 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 $€ 1,116$ million in the first half of 2024 (previous year: $€ 1,277$ million) and were made predominantly in the expansion of network infrastructure. For a breakdown of capital expenditure into asset classes and by division and region, see notes 12 and 16 to the consolidated financial statements.
Net cash from operating activities below prior-year level
Net cash from operating activities fell in the first half of 2024 from $€ 4,244$ million to $€ 3,612$ million. Alongside lower EBIT, the cash outflow as a result of changes in working capital had a particularly negative impact.
Net cash used in investing activities rose considerably, up from $€ 418$ million to $€ 1,006$ million. This was despite significantly lower investments in property, plant and equipment at $€ 1,297$ million (previous year: $€ 1,602$ million). The change in current financial assets led to a cash outflow of $€ 11$ million in the reporting period. In the previous year, there was a cash inflow of $€ 903$ million, which resulted from the liquidation of short-term financial investments with banks.
Free cash flow fell significantly from $€ 1,433$ million to $€ 952$ million. Excluding the payments for acquisitions and divestitures, free cash flow decreased by $€ 459$ million.
Net cash used in financing activities decreased from $€ 4,102$ million to $€ 3,392$ million. The largest item was the dividend distribution to our shareholders, which amounted to $€ 2,169$ million. In March 2024, we issued a bond, which resulted in an inflow of $€ 990$ million. Cash and cash equivalents fell from $€ 3,649$ million as of December 31, 2023, to $€ 2,853$ million.
CALCULATION OF FREE CASH FLOW
| $\mathbf{€ m}$ | H1 2023 | H1 2024 | Q2 2023 | Q2 2024 |
|---|---|---|---|---|
| Net cash from operating activities | 4,244 | 3,612 | $\mathbf{1 , 8 4 9}$ | $\mathbf{1 , 6 1 1}$ |
| Sale of property, plant and equipment and intangible assets | 57 | 122 | 25 | 76 |
| Acquisition of property, plant and equipment and intangible assets | $\mathbf{- 1 , 6 0 2}$ | $\mathbf{- 1 , 2 9 7}$ | $\mathbf{- 7 9 3}$ | $\mathbf{- 5 8 0}$ |
| - Cash outflow from change in property, plant and equipment and intangible assets | $\mathbf{- 1 , 5 4 5}$ | $\mathbf{- 1 , 1 7 5}$ | $\mathbf{- 7 6 8}$ | $\mathbf{- 5 0 4}$ |
| Acquisition of subsidiaries and other business units | -1 | 0 | 2 | 0 |
| Acquisition of investments accounted for using the equity method and other investments | -8 | -31 | -8 | -15 |
| - Cash outflow from acquisitions | $\mathbf{- 9}$ | $\mathbf{- 3 1}$ | $\mathbf{- 6}$ | $\mathbf{- 1 5}$ |
| Proceeds from lease receivables | 95 | 97 | 48 | 48 |
| Interest from lease receivables | 14 | 15 | 7 | 7 |
| Repayment of lease liabilities | $\mathbf{- 1 , 1 9 1}$ | $\mathbf{- 1 , 2 4 6}$ | $\mathbf{- 6 0 8}$ | $\mathbf{- 6 3 0}$ |
| Interest on lease liabilities | -253 | -324 | -128 | -164 |
| - Cash outflow for leases | $\mathbf{- 1 , 3 3 5}$ | $\mathbf{- 1 , 4 5 8}$ | $\mathbf{- 6 8 1}$ | $\mathbf{- 7 3 9}$ |
| Interest received (without leasing) | 118 | 100 | 58 | 52 |
| Interest paid (without leasing) | -40 | -96 | -2 | -61 |
| - Net interest received/paid | $\mathbf{7 8}$ | $\mathbf{4}$ | $\mathbf{5 6}$ | $\mathbf{- 9}$ |
| Free cash flow | $\mathbf{1 , 4 3 3}$ | $\mathbf{9 5 2}$ | $\mathbf{4 5 0}$ | $\mathbf{3 4 4}$ |
Net assets
SELECTED INDICATORS FOR NET ASSETS
| Dec. 31, 2023 | June 30, 2024 | ||
|---|---|---|---|
| Equity ratio | $\%$ | 34.2 | 33.4 |
| Net debt | $€ \mathrm{~m}$ | 17,739 | 19,885 |
| Net interest cover ${ }^{1}$ | 20.7 | 8.7 | |
| Net gearing | $\%$ | 43.7 | 46.8 |
1 In the first half-year.
Increase in consolidated total assets
The Group's total assets amounted to $€ 67,583$ million as of June 30, 2024, and were thus $€ 753$ million higher than on December 31, 2023 ( $€ 66,830$ million).
At $€ 48,185$ million, noncurrent assets exceeded the figure as of the comparison date ( $€ 47,617$ million). Higher goodwill due to currency effects led intangible assets in particular to increase from $€ 14,523$ million to $€ 14,648$ million. At $€ 30,412$ million, the amount of property, plant and equipment was slightly higher than on December 31, 2023 ( $€ 30,018$ million), with capital expenditure and positive currency effects surpassing depreciation and impairment losses, and disposals. Trade receivables increased slightly by $€ 328$ million to $€ 10,865$ million. Other current assets rose by a significant $€ 354$ million to $€ 2,769$ million, primarily due to an increase in prepaid expenses. Cash and cash equivalents decreased by $€ 796$ million to $€ 2,853$ million.
At $€ 22,067$ million, equity attributable to Deutsche Post AG shareholders was lower than on December 31, 2023 ( $€ 22,475$ million). The consolidated net profit for the period, gains from the remeasurement of pension obligations, and currency effects increased this figure, while the dividend distribution and further share buybacks decreased it. Higher interest rates in particular resulted in a significant decrease of $€ 397$ million in provisions for pensions and similar obligations to $€ 2,122$ million. Financial liabilities increased from $€ 22,718$ million as of December 31, 2023, to $€ 24,153$ million. The bond placed in March 2024 with a nominal volume of $€ 1$ billion played a significant part in this. Trade payables declined from $€ 8,479$ million to $€ 8,035$ million. Other current liabilities rose by $€ 349$ million to $€ 5,885$ million, due primarily to an increase in liabilities to employees.
Higher net debt
Net debt rose from $€ 17,739$ million as of December 31, 2023, to $€ 19,885$ million as of June 30, 2024. At $33.4 \%$, the equity ratio was in line with the figure as of December 31, 2023 (34.2\%). The net interest cover ratio indicates the extent to which net interest obligations are covered by EBIT. This figure declined from 20.7 to 8.7. Net gearing expresses the ratio of net debt to the total of equity and net debt. Net gearing was $46.8 \%$ as of June 30, 2024.
NET DEBT
| $€ \mathrm{~m}$ | Dec. 31, 2023 | June 30, 2024 |
|---|---|---|
| Bonds | 6,189 | 7,186 |
| + Amounts due to banks | 560 | 721 |
| + Lease liabilities | 14,080 | 14,422 |
| + Negative fair value of derivatives | 116 | 24 |
| + Other financial liabilities | 834 | 843 |
| + Financial liabilities ${ }^{1}$ | 21,779 | 23,196 |
| - Cash and cash equivalents | 3,649 | 2,853 |
| - Current financial assets ${ }^{1}$ | 364 | 422 |
| - Positive fair value of noncurrent derivatives ${ }^{2}$ | 27 | 36 |
| + Financial assets | 4,040 | 3,311 |
| Net debt | 17,739 | 19,885 |
[^0]
[^0]: 1 Less operating financial liabilities and/or operating financial assets.
2 Recognized in noncurrent financial assets in the balance sheet.
EXPECTED DEVELOPMENTS, OPPORTUNITIES AND RISKS
Future economic parameters
S\&P Global predicts that global economic growth is likely to maintain only a moderate pace during the second half of 2024 and beyond. Global trade is also expected to grow only moderately, expanding by $3.1 \%$ in price-adjusted terms (July forecast by the IMF), compared with an average of nearly $5 \%$ during the three decades preceding the COVID-19 pandemic. Apart from the structural disruptions due to the climate crisis, this reflects political polarization combined with increasing protectionism in many countries. This hampers the reduction in core inflation, which is likely to delay and limit monetary easing by leading central banks.
S\&P Global expects the world economy to grow by $2.7 \%$ in 2024. The global sideways tendency conceals slight year-on-year weakening in China (from $5.2 \%$ to $5.0 \%$ ) and the United States (from $2.5 \%$ to $2.4 \%$ ) on the one hand, and modest acceleration in the eurozone (from $0.6 \%$ to $0.8 \%$ ) and Germany (from $0.0 \%$ to $0.3 \%$ ) on the other.
Expected developments
The forecast we published in March 2024 explicitly anticipated a year-on-year decline in earnings for the first half of 2024. This expectation was based on positive market effects - particularly those driven by the still significantly elevated freight rates in air and ocean freight in the first half of 2023 - coming to an end. We also did not expect any notable uptick in economic growth in the first half of 2024. The results for the reporting period were in line with these expectations. For the second half of 2024, we continue to expect earnings to exceed the prior-year period. The extent of this earnings growth will depend on how the global economy develops over the remainder of the year.
For the 2024 fiscal year, we are therefore leaving our forecast for consolidated EBIT unchanged at between $€ 6.0$ billion and $€ 6.6$ billion. As before, we anticipate EBIT of more than $€ 5.7$ billion in the DHL divisions and EBIT of more than $€ 0.8$ billion in the Post \& Parcel Germany division. Group Functions is still anticipated to contribute around $€-0.45$ billion to earnings.
We also continue to plan for capital expenditure (excluding leases) to range between $€ 3.0$ billion and $€ 3.6$ billion in 2024. In view of the expected EBIT development in combination with a predicted increase in the asset charge, we expect the EAC to be down slightly year over year. Free cash flow is projected at around $€ 2.75$ billion, including a $€ 250$ million overall budget for M\&A expenses.
Opportunities and risks
Although the inflation outlook remains uncertain, it improved in the first half of 2024. That means it currently poses only a low risk for the Group.
The German federal government has approved a draft for the amendment of the Postgesetz (PostG - German Postal Act), which was adopted by the Bundestag in the reporting period. As of June 30, 2024, we continued to assess the risk from the regulatory framework of the German post and parcel market as medium. After the reporting date, the Bundesrat approved the draft legislation on July 5, 2024, which reduces the risk for the Group.
The Group's overall opportunity and risk situation did not otherwise change significantly during the first half of 2024 compared with the situation described in the 2023 Annual 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 JUNE 30
| Note | H1 2023 | H1 2024 | Q2 2023 | Q2 2024 | |
|---|---|---|---|---|---|
| Revenue | 5 | 41,012 | 40,890 | 20,094 | 20,639 |
| Other operating income | 6 | 1,299 | 1,232 | 698 | 607 |
| Changes in inventories and work performed and capitalized | 7 | 183 | 85 | 69 | 48 |
| Material expense | $-20,935$ | $-20,549$ | $-10,041$ | $-10,364$ | |
| Staff costs | $-13,483$ | $-14,113$ | $-6,747$ | $-7,103$ | |
| Depreciation, amortization and impairment losses | 8 | $-2,155$ | $-2,320$ | $-1,084$ | $-1,166$ |
| Other operating expenses | 9 | $-2,602$ | $-2,551$ | $-1,308$ | $-1,305$ |
| Net income/expenses from investments accounted for using the equity method | 10 | 12 | $-12$ | 12 | $-5$ |
| Profit from operating activities (EBIT) | 3,331 | 2,662 | 1,693 | 1,351 | |
| Financial income | 187 | 207 | 94 | 108 | |
| Finance costs | $-517$ | $-597$ | $-251$ | $-314$ | |
| Foreign-currency result | $-115$ | 20 | $-63$ | 5 | |
| Net finance costs | $-445$ | $-370$ | $-220$ | $-201$ | |
| Profit before income taxes | 2,886 | 2,292 | 1,473 | 1,150 | |
| Income taxes | $-866$ | $-688$ | $-442$ | $-345$ | |
| Consolidated net profit for the period | 2,020 | 1,604 | 1,031 | 805 | |
| attributable to Deutsche Post AG shareholders | 1,889 | 1,484 | 978 | 744 | |
| to noncontrolling interests | 131 | 120 | 53 | 61 | |
| Basic earnings per share (€) | 11 | 1.58 | 1.27 | 0.82 | 0.64 |
| Diluted earnings per share (€) | 11 | 1.55 | 1.25 | 0.80 | 0.63 |
STATEMENT OF COMPREHENSIVE INCOME
JANUARY 1 TO JUNE 30
| H1 2023 | H1 2024 | Q2 2023 | Q2 2024 | |
|---|---|---|---|---|
| Consolidated net profit for the period | 2,020 | 1,604 | 1,031 | 805 |
| Items that will not be reclassified to profit or loss | ||||
| Change due to remeasurements of net pension provisions | $-171$ | 561 | 13 | 251 |
| + Reserve for equity instruments without recycling | $-3$ | 2 | 1 | $-1$ |
| + Income taxes relating to components of other comprehensive income | $-33$ | $-45$ | $-14$ | 16 |
| = Total (net of tax) | $-207$ | 518 | 0 | 266 |
| Items that will be reclassified subsequently to profit or loss | ||||
| Hedging reserves | ||||
| + Changes from unrealized gains and losses | $-7$ | 29 | $-8$ | 14 |
| + Changes from realized gains and losses | $-11$ | $-1$ | $-4$ | $-3$ |
| Currency translation reserve | ||||
| + Changes from unrealized gains and losses | $-303$ | 267 | $-70$ | 52 |
| + Changes from realized gains and losses | 1 | 1 | 1 | 1 |
| + Income taxes relating to components of other comprehensive income | 23 | $-7$ | 21 | $-2$ |
| + Share of other comprehensive income of investments accounted for using the equity method, net of tax | $-1$ | 1 | 0 | 0 |
| = Total (net of tax) | $-298$ | 290 | $-60$ | 62 |
| Other comprehensive income (net of tax) | $-505$ | 808 | $-60$ | 328 |
| Total comprehensive income | 1,515 | 2,412 | 971 | 1,133 |
| attributable to Deutsche Post AG shareholders | 1,413 | 2,287 | 937 | 1,071 |
| to noncontrolling interests | 102 | 125 | 34 | 62 |
BALANCE SHEET
| $\boldsymbol{\epsilon m}$ | Note | Dec. 31, 2023¹ | June 30, 2024 |
|---|---|---|---|
| ASSETS | |||
| Intangible assets | 12 | 14,523 | 14,648 |
| Property, plant and equipment | 12 | 30,018 | 30,412 |
| Investment property | 13 | 12 | |
| Investments accounted for using the equity method | 104 | 107 | |
| Noncurrent financial assets | 13 | 1,118 | 1,156 |
| Other noncurrent assets | 388 | 499 | |
| Noncurrent income tax assets | 0 | 4 | |
| Deferred tax assets | 1,453 | 1,347 | |
| Noncurrent assets | 47,617 | 48,185 | |
| Inventories | 1,061 | 1,109 | |
| Current financial assets | 13 | 833 | 946 |
| Trade receivables | 10,537 | 10,865 | |
| Other current assets | 2,415 | 2,769 | |
| Current income tax assets | 663 | 850 | |
| Cash and cash equivalents | 3,649 | 2,853 | |
| Assets held for sale | 55 | 6 | |
| Current assets | 19,213 | 19,398 | |
| TOTAL ASSETS | 66,830 | 67,583 | |
| EQUITY AND LIABILITIES | |||
| Issued capital | 14 | 1,181 | 1,169 |
| Capital reserves | 15 | 3,579 | 3,615 |
| Other reserves | $-1,109$ | $-822$ | |
| Retained earnings | 15 | 18,824 | 18,105 |
| Equity attributable to Deutsche Post AG shareholders | 22,475 | 22,067 | |
| Noncontrolling interests | 413 | 512 | |
| Equity | 22,888 | 22,579 | |
| Provisions for pensions and similar obligations | 2,519 | 2,122 | |
| Deferred tax liabilities | 428 | 412 | |
| Other noncurrent provisions | 2,062 | 2,256 | |
| Noncurrent financial liabilities | 17,939 | 17,999 | |
| Other noncurrent liabilities | 280 | 286 | |
| Noncurrent income tax liabilities | 392 | 406 | |
| Noncurrent provisions and liabilities | 23,620 | 23,481 | |
| Current provisions | 1,079 | 989 | |
| Current financial liabilities | 4,779 | 6,154 | |
| Trade payables | 8,479 | 8,035 | |
| Other current liabilities | 5,536 | 5,885 | |
| Current income tax liabilities | 449 | 460 | |
| Liabilities associated with assets held for sale | 0 | 0 | |
| Current provisions and liabilities | 20,322 | 21,523 | |
| TOTAL EQUITY AND LIABILITIES | 66,830 | 67,583 | |
| 1 Prior-year figures adjusted, note 4. |
CASH FLOW STATEMENT
JANUARY 1 TO JUNE 30
| H1 2023 | H1 2024 | Q2 2023 | Q2 2024 | |
|---|---|---|---|---|
| Consolidated net profit for the period | 2,020 | 1,604 | 1,031 | 805 |
| + Income taxes | 866 | 688 | 442 | 345 |
| + Net finance costs | 445 | 370 | 220 | 201 |
| = Profit from operating activities (EBIT) | 3,331 | 2,662 | 1,693 | 1,351 |
| + Depreciation, amortization and impairment losses | 2,155 | 2,320 | 1,084 | 1,166 |
| + Net cost/net income from disposal of noncurrent assets | $-4$ | $-2$ | 1 | 0 |
| + Other noncash income and expense | $-133$ | $-118$ | $-116$ | $-88$ |
| + Change in provisions | $-166$ | 76 | $-113$ | 120 |
| + Change in other noncurrent assets and liabilities | $-26$ | $-26$ | $-19$ | $-3$ |
| + Dividend received | 7 | 0 | 4 | 0 |
| + Income taxes paid | $-895$ | $-812$ | $-506$ | $-496$ |
| = Net cash from operating activities before changes in working capital | 4,269 | 4,100 | 2,028 | 2,050 |
| + Change in inventories | $-114$ | $-37$ | $-53$ | $-41$ |
| + Change in receivables and other current assets | 1,606 | $-757$ | 824 | $-246$ |
| + Change in liabilities and other items | $-1,517$ | 306 | $-950$ | $-152$ |
| = Net cash from operating activities | 4,244 | 3,612 | 1,849 | 1,611 |
| Subsidiaries and other business units | 0 | 0 | 0 | 0 |
| + Property, plant and equipment and intangible assets | 57 | 122 | 25 | 76 |
| + Other noncurrent financial assets | 103 | 102 | 50 | 48 |
| = Proceeds from disposal of noncurrent assets | 160 | 224 | 75 | 124 |
| Subsidiaries and other business units | $-1$ | 0 | 2 | 0 |
| + Property, plant and equipment and intangible assets | $-1,602$ | $-1,297$ | $-793$ | $-580$ |
| + Investments accounted for using the equity method and other investments | $-8$ | $-31$ | $-8$ | $-15$ |
| + Other noncurrent financial assets | $-2$ | $-6$ | 0 | $-2$ |
| = Cash paid to acquire noncurrent assets | $-1,613$ | $-1,334$ | $-799$ | $-597$ |
| + Interest received | 132 | 115 | 65 | 59 |
| + Change in current financial assets | 903 | $-11$ | 121 | 5 |
| = Net cash used in investing activities | $-418$ | $-1,086$ | $-538$ | $-409$ |
| Proceeds from issuance of noncurrent financial liabilities | 1 | 990 | 1 | 0 |
| + Repayments of noncurrent financial liabilities | $-1,215$ | $-1,269$ | $-618$ | $-641$ |
| + Change in current financial liabilities | 130 | 167 | 180 | 260 |
| + Other financing activities | $-132$ | $-27$ | $-52$ | $-29$ |
| + Cash paid for transactions with noncontrolling interests | $-5$ | $-4$ | 0 | $-4$ |
| + Dividend paid to Deutsche Post AG shareholders | $-2,205$ | $-2,169$ | $-2,205$ | $-2,169$ |
| + Dividend paid to noncontrolling-interest holders | $-20$ | $-15$ | $-8$ | $-9$ |
| + Purchase of treasury shares | $-363$ | $-645$ | $-45$ | $-148$ |
| + Interest paid | $-293$ | $-420$ | $-130$ | $-225$ |
| = Net cash used in financing activities | $-4,102$ | $-3,392$ | $-2,877$ | $-2,965$ |
| Net change in cash and cash equivalents | $-276$ | $-786$ | $-1,566$ | $-1,763$ |
| + Effect of changes in exchange rates on cash and cash equivalents | $-228$ | $-10$ | $-103$ | 1 |
| + Cash and cash equivalents at beginning of reporting period | 3,790 | 3,649 | 4,955 | 4,615 |
| = Cash and cash equivalents at end of reporting period | 3,286 | 2,853 | 3,286 | 2,853 |
STATEMENT OF CHANGES IN EQUITY
JANUARY 1 TO JUNE 30
SELECTED EXPLANATORY NOTES
Company information
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 January 1 to June 30, 2024, and have been reviewed.
Basis of preparation
1 Basis of accounting
The condensed consolidated interim financial statements as of June 30, 2024, were prepared in compliance with International Financial Reporting Standards (IFRSs) and the related Interpretations of the International Accounting Standards Board (IASB) for interim financial reporting as adopted in the European Union as of the reporting date. These interim financial statements thus include all information and disclosures required by IFRSs to be presented in condensed interim financial statements.
Preparation of the condensed consolidated interim financial statements in accordance with IAS 34 requires the Board of Management to exercise judgement and make estimates and assumptions that affect the application of accounting policies in the Group and the presentation of assets, liabilities, income and expenses. Actual amounts may differ from these estimates.
The accounting policies applied to the condensed consolidated interim financial statements generally derive from the same accounting policies as used in the preparation of the consolidated financial statements for the 2023 fiscal year. Exceptions are the new or revised International Financial Reporting Standards (IFRSs) required to be applied for the first time in the 2024 financial year that, however, have not had a material influence on the consolidated interim financial statements. Detailed explanations of these can be found in the 2023 Annual Report in note 5 to the consolidated financial statements.
The income tax expense for the reporting period was deferred on the basis of the tax rate expected to apply to the full fiscal year. The effective tax rate is unchanged from the previous year at $30 \%$.
Changes to parameters
For DHL Group, the changes to parameters relate primarily to exchange rate changes for the most important currencies for the Group as well as to interest rates for the determination of the present value of pension obligations. The changes are as follows:
EXCHANGE RATES FOR SIGNIFICANT CURRENCIES
| $\mathbf{C 1}=$ | Closing rates | Average rates | |||
|---|---|---|---|---|---|
| Country | Dec. 31, 2023 | June 30, 2024 | H1 2023 | H1 2024 | |
| Cor | Australia | 1.6294 | 1.6076 | 1.6177 | 1.6428 |
| AU | China | 7.8843 | 7.8005 | 7.5541 | 7.8148 |
| GBP | United Kingdom | 0.8697 | 0.8462 | 0.8735 | 0.8534 |
| HKD | Hong Kong | 8.6475 | 8.3524 | 8.4766 | 8.4362 |
| INR | India | 92.0797 | 89.1686 | 88.8511 | 89.8210 |
| JPY | Japan | 156.6571 | 171.8045 | 147.8897 | 166.0940 |
| SEK | Sweden | 11.0919 | 11.3704 | 11.4158 | 11.4261 |
| USD | United States | 1.1070 | 1.0696 | 1.0808 | 1.0788 |
Accounting pursuant to IAS 29 is applied for Turkish companies. The consumer price index of the Turkish Statistical Institute was used for the adjustment of the purchasing power effects. As of December 31, 2023, this figure was 1,859 basis points, as of June 30, 2024, it had increased to 2,319 basis points.
The following discount rates were used to determine the present value of the pension obligations:
DISCOUNT RATE FOR THE PRESENT VALUE OF PENSION OBLIGATIONS
| $\%$ | Dec. 31, 2023 | June 30, 2024 |
|---|---|---|
| Germany | 3.30 | 3.80 |
| United Kingdom | 4.60 | 5.10 |
| Other | 3.31 | 3.50 |
| Total | $\mathbf{3 . 6 5}$ | $\mathbf{4 . 1 6}$ |
2 Consolidated group
The number of companies consolidated with Deutsche Post AG is shown in the following table:
CONSOLIDATED GROUP
| Dec. 31, 2023 | June 30, 2024 | |
|---|---|---|
| Number of fully consolidated companies (subsidiaries) | ||
| German | 81 | 82 |
| Foreign | 690 | 685 |
| Number of joint operations | ||
| German | 1 | 1 |
| Foreign | 0 | 0 |
| Number of investments accounted for using the equity method | ||
| German | 1 | 1 |
| Foreign | 17 | 17 |
The changes are primarily the result of mergers, formations and liquidations of immaterial companies. No companies were acquired in the first half of 2024.
Final purchase price allocation for MNG Kargo
MNG Kargo, acquired on October 5, 2023, with the approval of the Turkish competition authorities, and its subsidiary are leading parcel carriers in Turkey and have a strong presence in the e-commerce segment. The acquisition complements the business portfolio of DHL Group and is contributing to the company being able to benefit from growth potential in the Turkish market and continuing to strengthen its position in Turkey and in European markets. MNG Kargo is allocated to the eCommerce segment.
The purchase price allocation was finalized on July 25, 2024, and resulted in non-tax-deductible goodwill of $€ 234$ million, which is allocated to the eCommerce cash generating unit (CGU). It is mainly attributable to the synergies and network effects expected from the e-commerce market in Turkey. Customer relationships will be amortized over three to eight years. The brand name has a useful life of one year. The useful lives of the property, plant and equipment range from four to ten years. Current assets include trade receivables of $€ 24$ million. There was a difference of $€ 1$ million between the gross amount and the carrying amount.
FINAL OPENING BALANCE AS OF OCTOBER 5, 2023, MNG KARGO
| €m | Carrying amount | Adjustments due to purchase price allocation | Fair value |
|---|---|---|---|
| Noncurrent assets | 24 | 54 | 78 |
| Customer relationships | 38 | ||
| Brand name | 2 | ||
| Property, plant and equipment | 14 | ||
| Current assets | 28 | - | 28 |
| Cash and cash equivalents | 15 | - | 15 |
| ASSETS | 67 | 54 | 121 |
| Noncurrent provisions and liabilities | $-33$ | $-14$ | $-47$ |
| Deferred taxes | $-14$ | ||
| Current provisions and liabilities | $-49$ | - | $-49$ |
| EQUITY AND LIABILITIES | $-82$ | $-14$ | $-96$ |
| Net assets | $-15$ | 40 | 25 |
| Purchase price paid in cash | 259 | 259 | |
| Goodwill | 274 | $-40$ | 234 |
DHL Logistics LLC - SO
On December 7, 2023, DHL Global Forwarding acquired the remaining 60\% of shares in Danzas AEI Emirates. Until that time, the equity method had been applied to this company. Since then, the company has been fully consolidated and now operates under the name DHL Logistics LLC - SO (DHL Logistics). DHL Logistics is a specialist in logistics and transport services in Dubai and the northern Emirates. Thanks to this acquisition, the Global Forwarding, Freight division will continue driving its strategic goal and accelerate profitable growth in the Middle East and Africa region. The purchase price allocation was finalized on May 28, 2024, and resulted in non-tax-deductible goodwill of $€ 208$ million, which is allocated to the Global Forwarding CGU. The goodwill is mainly attributable to the synergies and network effects expected in Dubai and the northern Emirates. Customer relationships will be amortized over a period of seven to ten years. The useful lives of the property, plant and equipment range from 15 to 33 years. Current assets include trade receivables of $€ 41$ million. There was a difference of $€ 2$ million between the gross amount and the carrying amount.
FINAL OPENING BALANCE AS OF DECEMBER 7, 2023, DHL LOGISTICS
| t.m | Carrying amount | Adjustments due to purchase price allocation | Fair value |
|---|---|---|---|
| Noncurrent assets | 64 | 57 | 121 |
| Customer relationships | 9 | ||
| Land and buildings | 48 | ||
| Current assets | 48 | - | 48 |
| Cash and cash equivalents | 9 | - | 9 |
| ASSETS | 121 | 57 | 178 |
| Noncurrent provisions and liabilities | $-32$ | $-9$ | $-41$ |
| Deferred taxes | $-9$ | ||
| Current provisions and liabilities | $-33$ | - | $-33$ |
| EQUITY AND LIABILITIES | $-65$ | $-9$ | $-74$ |
| Net assets | 56 | 48 | 104 |
| Purchase price paid in cash | 187 | 187 | |
| Fair value of the existing equity interest ${ }^{1}$ | 125 | 125 | |
| Goodwill | 256 | $-48$ | 208 |
1 Includes the gain from change in consolidation method in the amount of $€ 114$ million, which is recognized under net income from investments accounted for using the equity method.
There were no material derecognition or deconsolidation effects in the first half of 2024.
3 Significant transactions
Sale of shares by the KfW
On February 6, 2024, the KfW sold 50 million shares from its holding in Deutsche Post AG. This took the KfW's shareholding to 16.45\%. With the capital reduction that took place in May 2024, its equity interest increased again and stands at 16.99\% as of June 30, 2024, note 14. The KfW remains the largest shareholder in Deutsche Post AG.
Share buyback of up to $€ 4$ billion
On February 12, 2024, the Board of Management resolved to expand the current share buyback program so that a total of up to 130 million treasury shares are to be purchased at a price of now up to $€ 4$ billion through the end of 2025 . The purposes remain unchanged. The repurchased shares will either be retired, used to service long-term executive remuneration plans and any future employee participation programs or used to meet potential obligations if rights accruing under the 2017/2025 convertible bond are exercised, note 14.
Capital reduction
With the authorization granted by the Annual General Meeting on May 4, 2023, the Board of Management resolved on May 2, 2024, to reduce the issued capital by $€ 39,059,409$ through the retirement of 39,059,409 treasury shares, note 14. This was entered in the commercial register on May 22, 2024. The withdrawal and cancellation of the shares was confirmed by Deutsche Bank on June 6, 2024.
Issue of a new bond
On March 25, 2024, Deutsche Post AG issued a bond with a volume of $€ 1$ billion. The twelve-year term ends on March 25, 2036. The bond has a fixed interest rate of $3.5 \%$ per year. The revenue will primarily be used for general company purposes, including the refinancing of existing financial liabilities.
4 Adjustment of prior-period amounts
The final purchase price allocation for MNG Kargo and DHL Logistics resulted in adjustments to the balance sheet items below. The adjustments were accounted for in the opening balance and led to a corresponding adjusted presentation in the balance sheet as of December 31, 2023.
BALANCE SHEET ADJUSTMENTS
| t/m | Amount | Adjustment | Adjusted amount |
|---|---|---|---|
| December 31, 2023 | |||
| Intangible assets | 14,567 | $-44$ | 14,523 |
| Property, plant and equipment | 29,958 | 60 | 30,018 |
| Adjustment to assets | 16 | ||
| Retained earnings | 18,826 | $-2$ | 18,824 |
| Deferred tax liabilities | 410 | 18 | 428 |
| Adjustment to equity and liabilities | 16 |
Income statement disclosures
5 Revenue by business unit
| t/m | H1 2023 | H1 2024 |
|---|---|---|
| Express | 12,126 | 11,947 |
| Global Forwarding, Freight | 9,701 | 8,895 |
| Global Forwarding | 7,587 | 6,802 |
| Freight | 2,114 | 2,093 |
| Supply Chain | 8,273 | 8,618 |
| eCommerce | 2,944 | 3,218 |
| Post \& Parcel Germany | 7,951 | 8,205 |
| Post Germany | 3,722 | 3,674 |
| Parcel Germany | 3,204 | 3,458 |
| International | 958 | 994 |
| Other | 67 | 79 |
| Group Functions/Consolidation | 17 | 7 |
| Total | 41,012 | 40,890 |
Group revenue fell by $€ 122$ million year on year to $€ 40,890$ million. While organic growth ( $€-266$ million) and currency effects ( $€-137$ million) reduced revenue, the previous year's acquisitions (portfolio changes) added revenue of $€ 281$ million.
6 Other operating income
| $\mathbf{6 m}$ | H1 2023 | H1 2024 |
|---|---|---|
| Income from the remeasurement of liabilities | 156 | 228 |
| Insurance-related income | 205 | 219 |
| Income from currency translation | 278 | 149 |
| Income from the reversal and remeasurement of provisions | 97 | 108 |
| Operating lease income | 105 | 105 |
| Income from fees and reimbursements | 57 | 60 |
| Income from the disposal of assets | 32 | 28 |
| Miscellaneous other operating income | 369 | 335 |
| Total | $\mathbf{1 , 2 9 9}$ | $\mathbf{1 , 2 3 2}$ |
Miscellaneous other operating income includes a large number of smaller individual items.
7 Changes in inventories and work performed and capitalized
| $\mathbf{6 m}$ | H1 2023 | H1 2024 |
|---|---|---|
| Income $(+) /$ expense $(-)$ from changes in inventories | 80 | -26 |
| Work performed and capitalized | 103 | 111 |
| Total | $\mathbf{1 8 3}$ | $\mathbf{8 5}$ |
Changes in inventories relate primarily to real estate development projects.
8 Depreciation, amortization and impairment losses
| $\mathbf{6 m}$ | H1 2023 | H1 2024 |
|---|---|---|
| Amortization of and impairment losses on intangible assets, of which impairment loss: 0 (previous year: 0) | 123 | 138 |
| Depreciation of and impairment losses on property, plant and equipment acquired, of which impairment losses: 2 (previous year: 1) |
928 | 998 |
| Depreciation of and impairment losses on right-of-use assets, of which impairment losses: 0 (previous year: 1) | 1,104 | 1,184 |
| Impairment of goodwill | 0 | 0 |
| Total | $\mathbf{2 , 1 5 5}$ | $\mathbf{2 , 3 2 0}$ |
As in the previous year, impairment losses arose solely in the Supply Chain segment. They amounted to $€ 2$ million.
9 Other operating expenses
| $\mathbf{K m}$ | H1 2023 | H1 2024 |
|---|---|---|
| Cost of purchased cleaning and security services | 332 | 354 |
| Warranty expenses, refunds and compensation payments | 257 | 287 |
| Travel and training costs | 167 | 176 |
| Other business taxes | 177 | 170 |
| Expenses for advertising and public relations | 158 | 159 |
| Insurance costs | 155 | 158 |
| Currency translation expenses | 265 | 149 |
| Telecommunication costs | 116 | 118 |
| Office supplies | 110 | 112 |
| Customs-clearance-related charges | 96 | 112 |
| Entertainment and corporate hospitality expenses | 95 | 99 |
| Miscellaneous other operating expenses | 674 | 657 |
| Total | $\mathbf{2 , 6 0 2}$ | $\mathbf{2 , 5 5 1}$ |
Miscellaneous other operating expenses include a large number of smaller individual items.
10 Net income/expenses from investments accounted for using the equity method
Net income/expenses from investments accounted for using the equity method deteriorated from income of $€ 12$ million in the previous year to expenses of $€ 12$ million in the reporting period. This was primarily due to income recorded in the previous year from share dilutions involving the Israeli company Global-E Online Ltd. and the US company Supply Network Visibility Holdings, LLC.
11 Earnings per share
Basic earnings per share in the reporting period were $€ 1.27$ (previous year: $€ 1.58$ ).
BASIC EARNINGS PER SHARE
| H1 2023 | H1 2024 | |
|---|---|---|
| Consolidated net profit for the period attributable to Deutsche Post AG shareholders | €m | 1,889 |
| Weighted average number of shares outstanding | Number | 1,193,088,223 |
| Basic earnings per share | € | 1.58 |
Diluted earnings per share in the reporting period were $€ 1.25$ (previous year: $€ 1.55$ ).
DILUTED EARNINGS PER SHARE
| H1 2023 | H1 2024 | ||
|---|---|---|---|
| Consolidated net profit for the period attributable to Deutsche Post AG shareholders | €m | 1,889 | 1,484 |
| Plus interest expense on the convertible bond | €m | 4 | 4 |
| Less income taxes ${ }^{1}$ | €m | 0 | 1 |
| Adjusted consolidated net profit for the period attributable to Deutsche Post AG shareholders | €m | 1,893 | 1,487 |
| Weighted average number of shares outstanding | Number | 1,193,088,223 | $1,171,754,038$ |
| Potentially dilutive shares | Number | 25,885,299 | 21,038,305 |
| Weighted average number of shares for diluted earnings | Number | 1,218,973,522 | 1,192,792,343 |
| Diluted earnings per share | € | 1.55 | 1.25 |
1 Rounded below $€ 1$ million.
Balance sheet disclosures
12 Intangible assets and property, plant and equipment
Investments in intangible assets (not including goodwill), property, plant and equipment acquired and right-of-use assets amounted to $€ 2,609$ million in the first half of 2024 (previous year: $€ 2,523$ million).
CAPITAL EXPENDITURES
| €m | June 30, 2023 | June 30, 2024 |
|---|---|---|
| Intangible assets (not including goodwill) | 135 | 112 |
| Acquired property, plant and equipment | ||
| Land and buildings | 64 | 60 |
| Technical equipment and machinery | 89 | 77 |
| Transport equipment | 112 | 149 |
| Aircraft | 84 | 69 |
| IT equipment | 33 | 24 |
| Operating and office equipment | 31 | 31 |
| Advance payments and assets under development | 729 | 594 |
| 1,142 | 1,004 | |
| Right-of-use assets | ||
| Land and buildings | 881 | 1,012 |
| Technical equipment and machinery | 16 | 18 |
| Transport equipment | 192 | 249 |
| Aircraft | 116 | 170 |
| Advance payments | 41 | 44 |
| 1,246 | 1,493 | |
| Total | 2,523 | 2,609 |
Goodwill changed as follows:
CHANGE IN GOODWILL
| $\boldsymbol{\epsilon m}$ | 2023 | 2024 |
|---|---|---|
| Cost | ||
| Balance as of January 1 | 13,775 | 14,064 |
| Additions from business combinations ${ }^{1}$ | 447 | 0 |
| Inflation adjustments pursuant to IAS 29 | 25 | 49 |
| Currency translation differences | -183 | 81 |
| Balance as of December 31/ June 30 ${ }^{1}$ | $\mathbf{1 4 , 0 6 4}$ | $\mathbf{1 4 , 1 9 4}$ |
| Amortization and impairment losses | 1,056 | |
| Balance as of January 1 | 1,061 | 10 |
| Currency translation differences | -5 | 10 |
| Balance as of December 31/ June 30 | $\mathbf{1 , 0 5 6}$ | $\mathbf{1 , 0 6 6}$ |
| Carrying amount as of December 31/ June 30 ${ }^{1}$ | $\mathbf{1 3 , 0 0 8}$ | $\mathbf{1 3 , 1 2 8}$ |
1 Prior-year figures adjusted, note 4.
Additions to goodwill in 2023 were mainly attributable to the acquisitions of MNG Kargo and DHL Logistics.
13 Financial assets
| $\boldsymbol{\epsilon m}$ | Noncurrent | Current | Total | |||
|---|---|---|---|---|---|---|
| Dec. 31, 2023 | June 30, 2024 | Dec. 31, 2023 | June 30, 2024 | Dec. 31, 2023 | June 30, 2024 | |
| Debt instruments (loans and receivables) at amortized cost (AC) | 252 | 260 | 578 | 633 | 830 | 893 |
| Debt instruments at fair value through profit or loss (FVTPL) | 306 | 355 | 29 | 32 | 335 | 387 |
| Equity instruments at fair value through profit or loss (FVTPL) | 1 | 1 | 0 | 0 | 1 | 1 |
| Equity instruments at fair value through other comprehensive income (FVTOCI) | 24 | 28 | 0 | 0 | 24 | 28 |
| Derivatives with hedge accounting | 2 | 8 | 11 | 24 | 13 | 32 |
| Derivatives without hedge accounting (M\&A) | 25 | 28 | 0 | 2 | 25 | 30 |
| Derivatives without hedge accounting | 0 | 0 | 44 | 74 | 44 | 74 |
| Lease assets | 508 | 476 | 171 | 181 | 679 | 657 |
| Financial assets | 1,118 | 1,156 | 833 | 946 | 1,951 | 2,102 |
The increase of $€ 151$ million in financial assets related mainly to pension plans in the United States ( $€ 49$ million) and to derivatives (€54 million).
Net impairments for the first half of 2024 amounted to expenses of $€ 32$ million (previous year: income of $€ 12$ million).
14 Issued capital and purchase of treasury shares
As of June 30, 2024, KfW held a 16.99\% interest in the issued capital of Deutsche Post AG (December 31, 2023: 20.49\%). Free float accounts for $80.41 \%$ of the shares and the remaining $2.6 \%$ of shares are owned by Deutsche Post AG.
By way of a resolution of the Board of Management dated May 2, 2024, the issued capital was reduced by $€ 39$ million through the retirement of 39,059,409 treasury shares. The issued capital is now composed of 1,200,000,000 no-par-value registered shares (ordinary shares) with a notional interest in the issued capital of $€ 1$ per share and is fully paid up.
CHANGES IN ISSUED CAPITAL AND TREASURY SHARES
| $\mathbf{€ m}$ | $\mathbf{2 0 2 3}$ | $\mathbf{2 0 2 4}$ |
|---|---|---|
| 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/June 30 | $\mathbf{1 , 2 3 9}$ | $\mathbf{1 , 2 0 0}$ |
| Treasury shares | -40 | -58 |
| Balance as of January 1 | -24 | 24 |
| Purchase of treasury shares/retirement of treasury shares | 6 | 3 |
| Issue/sale of treasury shares | -58 | $\mathbf{- 3 1}$ |
| Balance as of December 31/June 30 | $\mathbf{1 , 1 8 1}$ | $\mathbf{1 , 1 6 9}$ |
Share buyback program 2022/2025
The fifth tranche of the share buyback program 2022/2025 started on May 9, 2024. The buyback will be carried out through December 30, 2024, on the basis of an irrevocable agreement by an independent financial services provider. With the share buyback program 2022/2025, a total of up to 130 million treasury shares are to be purchased at a price of now up to $€ 4$ billion through the end of 2025 .
TRANCHES OF THE SHARE BUYBACK PROGRAM 2022/2025
| Total volume $\mathbf{€ m}$ |
Maximum duration | Buyback Number |
Buyback volume $\mathbf{€ m}$ |
Average price per share $\boldsymbol{€}$ |
|---|---|---|---|---|
| Tranche I | 800 | April 8, 2022, to November 7, 2022 | $21,931,589$ | 790 |
| Tranche II | 500 | November 9, 2022, to March 31, 2023 | $12,870,144$ | 500 |
| Tranche III | 500 | June 26, 2023, to October 31, 2023 | $11,664,906$ | 500 |
| Tranche IV | 600 | November 13, 2023, to April 19, 2024 | $13,887,118$ | 600 |
| Tranche V | 600 | May 9, 2024, to December 30, 2024 | $3,717,531^{1}$ | $144^{1}$ |
| Total | $\mathbf{3 , 0 0 0}$ | $\mathbf{6 4 , 0 7 1 , 2 8 8}$ | $\mathbf{2 , 5 3 4}$ |
1 As of the reporting date on June 30, 2024.
The shares bought back as part of tranche V can be used for the purposes specified under note 3.
Share Matching Program
In the first half of 2024, 3 million treasury shares, acquired for a total of $€ 119$ million at an average purchase price of $€ 39.60$ per share, were issued to executives to settle the 2023 SMS tranche and claims to matching shares under the 2019 tranche.
Deutsche Post AG held 31,216,520 treasury shares as of June 30, 2024.
15 Reserves
Capital reserves
CAPITAL INCREASE/DECREASE
| $\mathbf{6 m}$ | $\mathbf{2 0 2 3}$ | $\mathbf{H 1} \mathbf{2 0 2 4}$ |
|---|---|---|
| Changes due to share-based remuneration programs | 36 | -3 |
| Capital reduction through retirement of treasury shares | 0 | 39 |
| Total | $\mathbf{3 6}$ | $\mathbf{3 6}$ |
Retained earnings
CAPITAL INCREASE/DECREASE
| $\mathbf{6 m}$ | $\mathbf{2 0 2 3}$ | $\mathbf{H 1} \mathbf{2 0 2 4}$ |
|---|---|---|
| Share buyback 2022/2025 | $-1,078$ | -585 |
| Changes due to share-based remuneration programs | 57 | 50 |
| Capital reduction through retirement of treasury shares | 0 | -39 |
| Other | 1 | 0 |
| Total | $\mathbf{- 1 , 0 2 0}$ | $\mathbf{- 5 7 4}$ |
Tranche V of the share buyback program 2022/2025, with a total volume of up to $€ 600$ million, began on May 9, 2024, and is being implemented by an independent financial services provider until December 30, 2024, on the basis of an irrevocable agreement. At the time the agreement was concluded, the resulting obligation was charged in full to retained earnings and recognized as a financial liability. It was reduced by the buyback transactions carried out by June 30, 2024. The obligation to repurchase shares after June 30, 2024, is included in the amount of $€ 456$ million.
Segment reporting
16 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
| $\boldsymbol{\epsilon m}$ | Express | Global Forwarding, Freight ${ }^{1}$ |
Supply Chain | eCommerce ${ }^{1}$ | ||||
|---|---|---|---|---|---|---|---|---|
| 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | |
| External revenue | 12,126 | 11,947 | 9,701 | 8,895 | 8,273 | 8,618 | 2,944 | 3,218 |
| Internal revenue | 277 | 279 | 622 | 602 | 66 | 67 | 69 | 82 |
| Total revenue | 12,403 | 12,226 | 10,323 | 9,497 | 8,339 | 8,685 | 3,013 | 3,300 |
| Profit from operating activities (EBIT) | 1,804 | 1,315 | 777 | 542 | 499 | 535 | 159 | 125 |
| of which: net income/expenses from investments accounted for using the equity method | 1 | 0 | 0 | $-1$ | $-3$ | $-1$ | 0 | 0 |
| Segment assets ${ }^{2}$ | 20,649 | 20,606 | 11,363 | 11,968 | 10,430 | 11,124 | 3,398 | 3,553 |
| of which: investments accounted for using the equity method | 9 | 8 | 13 | 12 | 17 | 15 | 25 | 40 |
| Segment liabilities ${ }^{2}$ | 4,824 | 4,627 | 3,906 | 3,981 | 3,836 | 3,864 | 1,000 | 918 |
| Net segment assets/liabilities ${ }^{2}$ | 15,825 | 15,979 | 7,457 | 7,987 | 6,594 | 7,260 | 2,398 | 2,635 |
| Capex (assets acquired) | 424 | 356 | 80 | 71 | 210 | 246 | 158 | 113 |
| Capex (right-of-use assets) | 391 | 443 | 122 | 94 | 312 | 547 | 80 | 150 |
| Total capex | 815 | 799 | 202 | 165 | 522 | 793 | 238 | 263 |
| Depreciation and amortization | 860 | 914 | 162 | 176 | 460 | 507 | 105 | 136 |
| Impairment losses | 0 | 0 | 0 | 0 | 2 | 2 | 0 | 0 |
| Total depreciation, amortization and impairment losses | 860 | 914 | 162 | 176 | 462 | 509 | 105 | 136 |
| Net cash from (+)/used in (-) operating activities | 2,364 | 2,127 | 1,342 | 210 | 453 | 676 | 227 | 270 |
| Employees ${ }^{3}$ | 112,378 | 109,542 | 46,991 | 45,665 | 181,720 | 186,126 | 32,287 | 39,793 |
| Second quarter | ||||||||
| External revenue | 5,991 | 6,069 | 4,540 | 4,575 | 4,201 | 4,317 | 1,474 | 1,626 |
| Internal revenue | 131 | 151 | 299 | 305 | 31 | 35 | 34 | 41 |
| Total revenue | 6,122 | 6,220 | 4,839 | 4,880 | 4,232 | 4,352 | 1,508 | 1,667 |
| Profit from operating activities (EBIT) | 901 | 683 | 388 | 279 | 272 | 279 | 78 | 67 |
| of which: net income/expenses from investments accounted for using the equity method | 1 | 1 | 0 | $-1$ | 0 | 1 | 0 | 0 |
| Capex (assets acquired) | 242 | 191 | 37 | 29 | 98 | 129 | 116 | 63 |
| Capex (right-of-use assets) | 241 | 213 | 68 | 47 | 179 | 295 | 43 | 36 |
| Total capex | 483 | 404 | 105 | 76 | 277 | 424 | 159 | 99 |
| Depreciation and amortization | 435 | 458 | 82 | 88 | 231 | 256 | 53 | 70 |
| Impairment losses | 0 | 0 | 0 | 0 | 2 | 1 | 0 | 0 |
| Total depreciation, amortization and impairment losses | 435 | 458 | 82 | 88 | 233 | 257 | 53 | 70 |
| Net cash from (+)/used in (-) operating activities | 1,141 | 1,003 | 485 | 242 | 292 | 275 | 90 | 120 |
[^0]
[^0]: 1 Prior-year figures adjusted, note 4.
2 As of December 31, 2023, and June 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 June 30 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
| External revenue | 7,951 | 8,205 | 16 | 7 | 1 | 0 | 41,012 | 40,890 |
| Internal revenue | 243 | 221 | 905 | 968 | $-2,182$ | $-2,219$ | 0 | 0 |
| Total revenue | 8,194 | 8,426 | 921 | 975 | $-2,181$ | $-2,219$ | 41,012 | 40,890 |
| Profit from operating activities (EBIT) | 261 | 324 | $-171$ | $-175$ | 2 | $-4$ | 3,331 | 2,662 |
| of which: net income/expenses from investments accounted for using the equity method | 0 | 0 | 14 | $-9$ | 0 | $-1$ | 12 | $-12$ |
| Segment assets ${ }^{2}$ | 9,585 | 9,354 | 4,226 | 4,328 | $-63$ | $-61$ | 59,588 | 60,872 |
| of which: investments accounted for using the equity method | 0 | 0 | 39 | 31 | 1 | 0 | 104 | 106 |
| Segment liabilities ${ }^{2}$ | 2,598 | 2,627 | 1,567 | 1,673 | $-44$ | $-49$ | 17,687 | 17,641 |
| Net segment assets/liabilities ${ }^{2}$ | 6,987 | 6,727 | 2,659 | 2,655 | $-19$ | $-12$ | 41,901 | 43,231 |
| Capex (assets acquired) | 344 | 275 | 61 | 55 | 0 | 0 | 1,277 | 1,116 |
| Capex (right-of-use assets) | 44 | 50 | 297 | 208 | 0 | 1 | 1,246 | 1,493 |
| Total capex | 388 | 325 | 358 | 263 | 0 | 1 | 2,523 | 2,609 |
| Depreciation and amortization | 281 | 305 | 285 | 279 | 0 | 1 | 2,153 | 2,318 |
| Impairment losses | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 2 |
| Total depreciation, amortization and impairment losses | 281 | 305 | 285 | 279 | 0 | 1 | 2,155 | 2,320 |
| Net cash from (+)/used in (-) operating activities | 643 | 1,014 | 23 | 107 | $-808$ | $-792$ | 4,244 | 3,612 |
| Employees ${ }^{3}$ | 158,324 | 155,008 | 13,984 | 14,005 | 1 | 0 | 545,685 | 550,139 |
| Second quarter | ||||||||
| External revenue | 3,873 | 4,049 | 15 | 3 | 0 | 0 | 20,094 | 20,639 |
| Internal revenue | 123 | 111 | 452 | 484 | $-1,070$ | $-1,127$ | 0 | 0 |
| Total revenue | 3,996 | 4,160 | 467 | 487 | $-1,070$ | $-1,127$ | 20,094 | 20,639 |
| Profit from operating activities (EBIT) | 123 | 130 | $-69$ | $-84$ | 0 | $-3$ | 1,693 | 1,351 |
| of which: net income/expenses from investments accounted for using the equity method | 0 | 0 | 11 | $-5$ | 0 | $-1$ | 12 | $-5$ |
| Capex (assets acquired) | 181 | 187 | 34 | 34 | 0 | 0 | 708 | 633 |
| Capex (right-of-use assets) | 38 | 22 | 220 | 89 | 0 | 1 | 789 | 703 |
| Total capex | 219 | 209 | 254 | 123 | 0 | 1 | 1,497 | 1,336 |
| Depreciation and amortization | 137 | 155 | 144 | 139 | 0 | $-1$ | 1,082 | 1,165 |
| Impairment losses | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 1 |
| Total depreciation, amortization and impairment losses | 137 | 155 | 144 | 139 | 0 | $-1$ | 1,084 | 1,166 |
| Net cash from (+)/used in (-) operating activities | 276 | 490 | 53 | $-6$ | $-488$ | $-513$ | 1,849 | 1,611 |
[^0]
[^0]: 1 Prior-year figures adjusted, note 4.
2 As of December 31, 2023, and June 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.
INFORMATION ABOUT GEOGRAPHICAL REGIONS
| (in | Germany | Europe (excluding Germany) | Americas | Asia Pacific | Middle East/Africa ${ }^{1}$ | Group ${ }^{2}$ | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| January 1 to June 30 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
| External revenue | 10,356 | 10,620 | 12,462 | 12,287 | 8,983 | 8,784 | 7,371 | 7,086 | 1,840 | 2,113 | 41,012 | 40,890 |
| Noncurrent assets ${ }^{3}$ | 12,873 | 12,811 | 14,072 | 14,244 | 10,652 | 10,910 | 5,791 | 5,870 | 1,400 | 1,475 | 44,788 | 45,310 |
| Total capex | 880 | 751 | 676 | 754 | 579 | 623 | 288 | 378 | 100 | 103 | 2,523 | 2,609 |
| Second quarter | ||||||||||||
| External revenue | 5,027 | 5,237 | 6,077 | 6,225 | 4,446 | 4,483 | 3,643 | 3,625 | 901 | 1,069 | 20,094 | 20,639 |
| Total capex | 541 | 414 | 363 | 364 | 389 | 307 | 151 | 209 | 53 | 42 | 1,497 | 1,336 |
1 Prior-year figures adjusted, note 4.
2 As of December 31, 2023, and June 30, 2024.
RECONCILIATION
| (in | H1 2023 | H1 2024 |
|---|---|---|
| Total income of reported segments | 3,500 | 2,841 |
| Group Functions | $-171$ | $-175$ |
| Reconciliation to Group/Consolidation | 2 | $-4$ |
| Profit from operating activities (EBIT) | 3,331 | 2,662 |
| Net finance costs | $-445$ | $-370$ |
| Profit before income taxes | 2,886 | 2,292 |
| Income taxes | $-866$ | $-688$ |
| Consolidated net profit for the period | 2,020 | 1,604 |
17 Disclosures on financial instruments
| IFRS 9 carrying amount | ||||||||
|---|---|---|---|---|---|---|---|---|
| Carrying amount June 30, 2024 | At amortized cost | At fair value through other comprehensive income (without reclassification) | At fair value through other comprehensive income (with reclassification) | At fair value through profit or loss (FVTPL) | IFRS 16 balance sheet carrying amount | Fair value June 30, $2024^{1}$ | ||
| ASSETS | ||||||||
| Current | ||||||||
| Cash and cash equivalents | AC | 2,853 | 2,853 | |||||
| Trade receivables | AC | 10,865 | 10,865 | |||||
| Current financial assets | ||||||||
| Debt instruments (loans and receivables) at amortized cost (AC) | AC | 633 | 633 | |||||
| of which collateral paid | AC | 18 | 18 | |||||
| Debt instruments at fair value through profit or loss (FVTPL) | FVTPL | 32 | 32 | 32 | ||||
| Derivatives with hedge accounting | n.a. | 24 | 24 | 24 | ||||
| Derivatives without hedge accounting at fair value through profit or loss (FVTPL) | FVTPL | 74 | 74 | 74 | ||||
| Derivatives without hedge accounting (M\&A) at fair value through profit or loss (FVTPL) | FVTPL | 2 | 2 | 2 | ||||
| Lease assets | n.a. | 181 | 181 | |||||
| Noncurrent | ||||||||
| Noncurrent financial assets | ||||||||
| Debt instruments (loans and receivables) at amortized cost (AC) | AC | 260 | 260 | 260 | ||||
| of which collateral paid | AC | 32 | 32 | |||||
| Debt instruments at fair value through profit or loss (FVTPL) | FVTPL | 355 | 355 | 355 | ||||
| Equity instruments at fair value through profit or loss (FVTPL) | FVTPL | 1 | 1 | 1 | ||||
| Equity instruments at fair value through other comprehensive income (FVTOCI) | FVTOCI | 28 | 28 | 28 | ||||
| Derivatives with hedge accounting | n.a. | 8 | 8 | 8 | ||||
| Derivatives without hedge accounting (M\&A) at fair value through profit or loss (FVTPL) | FVTPL | 28 | 28 | 28 | ||||
| Lease assets | n.a. | 476 | 476 | |||||
| TOTAL ASSETS | 15,820 | 14,611 | 28 | 32 | 492 | 657 |
1 The simplification option under IFRS 7.29a was exercised for the disclosure of certain fair values.
Group
IFRS 9 carrying amount
| Measurement | Carrying | IFRS 9 carrying amount | ||||||
|---|---|---|---|---|---|---|---|---|
| category | amount | At fair value through other comprehensive income (without reclassification) | At fair value through other comprehensive income (with reclassification) | At fair value through profit or loss (FVTPL) | IFRS 16 balance sheet carrying amount | Fair value June 30, $2024^{1}$ | ||
| 6 m | 2024 | |||||||
| EQUITY AND LIABILITIES | ||||||||
| Current | ||||||||
| Trade payables | AC | 8,055 | 8,035 | |||||
| Financial liabilities | ||||||||
| Bonds | AC | 1,710 | 1,710 | 1,677 | ||||
| Amounts due to banks | AC | 431 | 431 | |||||
| Lease liabilities | n.a. | 2,563 | 2,563 | n.a. | ||||
| Derivatives with hedge accounting | n.a. | 10 | 10 | 10 | ||||
| Derivatives without hedge accounting | FVTPL | 12 | 12 | 12 | ||||
| Other financial liabilities | AC | 1,628 | 1,628 | |||||
| Noncurrent | ||||||||
| Financial liabilities | ||||||||
| Bonds | AC | 5,476 | 5,476 | 5,192 | ||||
| Amounts due to banks | AC | 290 | 290 | 290 | ||||
| Lease liabilities | n.a. | 12,059 | 12,059 | n.a. | ||||
| Derivatives with hedge accounting | n.a. | 2 | 2 | 2 | ||||
| Other financial liabilities | AC | 172 | 172 | 172 | ||||
| TOTAL EQUITY AND LIABILITIES | 32,188 | 17,742 | 12 | 12 | 14,422 |
1 The simplification option under IFRS 7.29a was exercised for the disclosure of certain fair values.
1 The simplification option under IFRS 7.29a was exercised for the disclosure of certain fair values.
| Measurement category |
Carrying amount December 31, 2023 | IFRS 9 carrying amount | |||||
|---|---|---|---|---|---|---|---|
| At amortized cost | At fair value through other comprehensive income (without reclassification) | At fair value through other comprehensive income (with reclassification) | At fair value through profit or loss (FVTPL) | IFRS 16 balance sheet carrying amount | |||
| 6m | |||||||
| EQUITY AND LIABILITIES | |||||||
| Current | |||||||
| Trade payables | AC | 8,479 | 8,479 | ||||
| Financial liabilities | |||||||
| Bonds | AC | 717 | 717 | 713 | |||
| Amounts due to banks | AC | 256 | 256 | ||||
| Lease liabilities | n.a. | 2,254 | 2,254 | ||||
| Derivatives with hedge accounting | n.a. | 13 | 13 | 13 | |||
| Derivatives without hedge accounting | FVTPL | 97 | 97 | 97 | |||
| Other financial liabilities | AC | 1,442 | 1,442 | ||||
| Noncurrent | |||||||
| Financial liabilities | |||||||
| Bonds | AC | 5,472 | 5,472 | 5,195 | |||
| Amounts due to banks | AC | 304 | 304 | 304 | |||
| Lease liabilities | n.a. | 11,826 | 11,826 | ||||
| Derivatives with hedge accounting | n.a. | 6 | 6 | 6 | |||
| Other financial liabilities | AC | 331 | 331 | 331 | |||
| TOTAL EQUITY AND LIABILITIES | 31,197 | 17,001 | 19 | 97 | 14,080 |
1 The simplification option under IFRS 7.29a was exercised for the disclosure of certain fair values.
AGGREGATION
| 6 m | Dec. 31, 2023 | June 30, 2024 |
|---|---|---|
| Financial assets at amortized cost (AC) | 15,016 | 14,611 |
| Financial assets at fair value through other comprehensive income (without reclassification) | 24 | 28 |
| Financial assets at fair value through other comprehensive income (with reclassification) | 13 | 32 |
| Financial assets at fair value through profit or loss | 405 | 492 |
| Financial liabilities at amortized cost (AC) | 17,001 | 17,742 |
| Financial liabilities at fair value through other comprehensive income (with reclassification) | 19 | 12 |
| Financial liabilities at fair value through profit or loss | 97 | 12 |
The tables above present the carrying amounts and the fair values of the individual financial assets and liabilities for each individual class in consideration of the respective measurement category under IFRS 9. Depending on the classification, the financial instruments are either recognized at amortized cost or at fair value as part of the subsequent measurement. The fair values are indicated per class of financial instrument. No distinction is made according to maturity. The fair values are not listed for trade receivables and payables, cash and cash equivalents and other current debt instruments; the simplification rule of IFRS 7.29a has been applied. The carrying amounts of the current financial assets and liabilities mentioned are appropriate approximations of their fair values.
The fair values are reconciled to the fair value categories (Level 1 to 3).
Level 1 comprises equity and debt instruments measured at fair value and debt instruments measured at amortized cost whose fair values can be determined based on quoted market prices.
In addition to financial assets and financial liabilities measured at amortized cost, commodity, interest rate and foreign currency derivatives are reported under Level 2. The fair values of assets measured at amortized cost are determined using the multiplier method, among other things. 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). For this purpose, price quotations observable in the market (exchange rates, interest rates and commodity prices) are imported from standard market information platforms into the treasury management system. The price quotations reflect actual transactions involving similar instruments on an active market. All significant inputs used to measure derivatives are observable in the market.
As of the reporting date, a call option and warrants are recognized under Level 3 that entitle the holder to acquire further shares in the company. The fair values of the derivative financial instruments are determined on the basis of the Black-Scholes option pricing model. If possible, parameters observable on the market or derived from market data are used to determine the value. A volatility of $41 \%$ is taken into account for the call option and a volatility of $39 \%$ for the warrants. The volatilities are based on the volatilities of a comparable group of companies. No major fluctuations in earnings are to be expected with regard to the call option in the future. Because the warrants are based on a listed underlying share, there could be earnings fluctuations in the subsequent years.
LEVEL DISCLOSURES
| December 31, 2023 | June 30, 2024 | ||||||
|---|---|---|---|---|---|---|---|
| €m | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 |
| Financial instruments not measured at fair value but whose fair value must be disclosed |
|||||||
| ASSETS | |||||||
| Debt instruments (loans and receivables) at amortized cost (AC) |
252 | 252 | 260 | ||||
| EQUITY AND LIABILITIES | |||||||
| Bonds | 4,958 | 950 | 5,908 | 5,907 | 962 | ||
| Amounts due to banks | 304 | 304 | 290 | ||||
| Other financial liabilities | 331 | 331 | 172 | ||||
| Financial instruments at fair value | |||||||
| ASSETS | |||||||
| Debt instruments at fair value through profit or loss (FVTPL) |
335 | 335 | 387 | ||||
| Equity instruments at fair value through profit or loss (FVTPL) |
1 | 1 | 1 | 0 | |||
| Equity instruments at fair value through other comprehensive income (FVTOC) |
24 | 24 | 28 | ||||
| Derivatives with hedge accounting | 13 | 13 | 32 | ||||
| Derivatives without hedge accounting at fair value through profit or loss (FVTPL) |
44 | 44 | 74 | ||||
| Derivatives without hedge accounting (M\&A) at fair value through profit or loss (FVTPL) |
25 | 25 | 30 | ||||
| EQUITY AND LIABILITIES | |||||||
| Derivatives with hedge accounting | 19 | 19 | 12 | ||||
| Derivatives without hedge accounting | 97 | 97 | 12 |
Compared with December 31, 2023, equity instruments changed as follows:
UNOBSERVABLE INPUTS (LEVEL 3)
| Assets Equity derivatives |
||
|---|---|---|
| €m | 2023 | 2024 |
| Balance as of January 1 | 33 | 25 |
| Profit recognized in the income statement | 8 | 7 |
| Losses recognized in the income statement | -16 | -2 |
| Balance as of December 31/ June 30 | 25 | 30 |
18 Contingent liabilities and other financial obligations
At $€ 1,125$ million, contingent liabilities were on a level with the previous year, while the purchase obligation decreased by $€ 35$ million compared with December 31, 2023, to $€ 1,482$ million.
19 Related-party disclosures
There were no material changes with regard to related parties compared with December 31, 2023.
20 Events after the reporting date/other disclosures
Reforms to Germany's Postal Act (Postgesetz) entered into force on July 19, 2024. The old Postal Act and its regulations, such as the Universal Postal Services Ordinance (Post-Universaldienstverordnung), the Postal Rate Regulation Act (PostEntgeltregulierungsverordnung) and the Mail Guarantee Act (Postsicherstellungsgesetz), expired on that date. The new Postal Act contains a changed legal framework for regulating market access, postal rates and network access as well as for combatting market abuse and for protecting postal workers. There are also changes to some of the requirements for nationwide provision of postal services (universal postal service).
Beyond that, there were no reportable events after the reporting date.
RESPONSIBILITY STATEMENT
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the condensed consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the Interim Group Management Report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remainder of the fiscal year.
Bonn, July 31, 2024
Deutsche Post AG
The Board of Management
| Dr. Tobias Meyer | Oscar de Bok |
|---|---|
| Pablo Ciano | Nikola Hagleitner |
| Melanie Kreis | Dr. Thomas Ogilvie |
| John Pearson | Tim Scharwath |
REVIEW REPORT
To Deutsche Post AG, Bonn
We have reviewed the condensed interim consolidated financial statements of Deutsche Post AG, Bonn, which comprise the consolidated statement of profit and loss and the consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated statement of cash flows, the consolidated statement of changes in equity as well as selected explanatory notes to the consolidated financial statements, and the interim group management report for the period from 1 January to 30 June 2024, that are part of the half-year financial information under Section 115 German Securities Trading Act (WpHG). The preparation of the condensed interim consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS) applicable to interim financial reporting as adopted by the EU and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management reports is the responsibility of the executive directors of the Company. Our responsibility is to issue a review report on the condensed interim consolidated financial statements and on the interim group management report based on our review.
We conducted our review of the condensed interim consolidated financial statements and of the interim group management report in compliance with the German Generally Accepted Standards for Reviews of Financial Statements promulgated by the Institut der Wirtschaftsprüfer (IDW) and in supplementary compliance with the International Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". Those standards require that we plan and perform the review to obtain a certain level of assurance to preclude through critical evaluation that the condensed interim consolidated financial statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, or that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of company personnel and to analytical procedures applied to financial data and thus provides less assurance than an audit. Since, in accordance with our engagement, we have not performed an audit, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the condensed interim consolidated financial statements of Deutsche Post AG, Bonn, have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the or that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.
Munich, 31 July 2024
Deloitte GmbH
Wirtschaftsprüfungsgesellschaft
| Prof. Dr. Frank Beine | Dr. Hendrik Nardmann |
|---|---|
| Wirtschaftsprüfer | Wirtschaftsprüfer |
| (German Public Auditor) | (German Public Auditor) |
FINANCIAL CALENDAR
2024
November 5 Results of the first nine months of 2024
2025
March 6 Results of the 2024 fiscal year
May 2 2025 Annual General Meeting
May 7 Dividend payment
May 8 Results of the first quarter of 2025
August 5 Results of the first half of 2025
November 6 Results of the first nine months of 2025
Revised dates and information regarding live webcasts can be found on our Reporting Hub.
CONTACT
Deutsche Post AG
Headquarters
53250 Bonn
Germany
Investor Relations
Press Office
Publication
Published on August 1, 2024.
The English version of the 2024 Half-year Report 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.
Forward-looking statements
This report contains forward-looking statements which are not historical facts. They also include statements concerning assumptions and expectations which are based upon current plans, estimates and projections, and the information available to Deutsche Post AG at the time this report was completed. They should not be considered to be assurances of future performance and results contained therein. Instead, they depend on a number of factors and are subject to various risks and uncertainties (particularly those described in the "Expected developments, opportunities and risks" section) and are based on assumptions that may prove to be inaccurate. It is possible that actual performance and results may differ from the forward-looking statements made in this report. Deutsche Post AG undertakes no obligation to update the forward-looking statements contained in this report except as required by applicable law. If Deutsche Post AG updates one or more forward-looking statements, no assumption can be made that the statement(s) in question or other forward-looking statements will be updated regularly.