Deutsche Post Finance B.V. Annual Report 2021

Page
1. Management Report 4
1.1 Introduction 4
1.2 Incorporation 4
1.3 Organizational Structure 4
1.4 Share Capital 4
1.5 Business overview, Purpose and Objects 4
1.6 Management Board 5
1.7 Main business developments 5
1.8. Management Board policy with respect to risks 6
1.9 Future business developments 7
1.10 Diversity 8
1.11 Responsibility Statement 9
2. Financial Statements 10
2.1 Balance sheet 10
2.2 Statement of comprehensive income 11
2.3 Statement of changes in equity 12
2.4 Cash flow statement 13
2.5 Notes to the Financial Statements 14
(1) General overview 14
(2) Going concern 14
(3) Basis of accounting 15
(4) New developments in international accounting under IFRS 15
(5) Critical accounting estimates and judgments 17
(6) Related party transactions 17
(7) Cash flow statement 17
(8) Foreign currencies 18
(9) Financial assets 18
(10) Cash pool receivables and payables 19
(11) Financial liabilities 19
(12) Offsetting financial instruments 19
(13) Derivative financial instruments and hedge accounting 20
(14) Interest income and expense 20
(15) Principles for the determination of the result 21
(16) Financial risk management 21
(17) Loans receivable from affiliates 25
(18) Derivatives 27
(19) Short-term receivables from affiliates 27
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(20) Cash pool receivables 28
(21) Equity 28
(22) Bond 28
(23) Accrued interest 30
(24) Other current liabilities and accruals 30
(25) Interest income 30
(26) Interest expenses 31
(27) Other gains and losses 31
(28) Other operating expenses 31
(29) Income tax expense 31
(30) Additional disclosure on the financial instruments 32
(31) Employees 38
(32) Directors’ remuneration 38
(33) Commitments and rights not included in the balance sheet 38
(34) Independent auditor’s fees 38
(35) Post balance sheet events 39
3. Other information 40

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1. Management Report

1.1 Introduction

This report includes the 2021 Financial Statements of Deutsche Post Finance B.V. (“the Company”). The Company is part of Deutsche Post DHL Group (“the Group”).

1.2 Incorporation

The Company is a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid) and was incorporated in The Netherlands, Rotterdam on 13 April, 1999. It is governed by the laws of The Netherlands. The Company is now listed in the Commercial Register of the Dutch Chamber of Commerce under number 24292643. Its official seat is in Maastricht, The Netherlands, its business address is Pierre de Coubertinweg 7N, 6225 XT Maastricht, The Netherlands, telephone number +31 (43) 3564000. The Company is a privately held company and is not subject to public corporate governance standards. The Company is not required to have an audit committee under the laws of The Netherlands due to an exemption under article 3 of the Decree implementing (i) Directive 2014/56/EU amending Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts and (ii) Regulation (EU) 537/2014 on specific requirements regarding statutory audits of public-interest entities and amending the Decree implementing Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts (Besluit instelling auditcommissie). It does not have an audit committee. The Legal Entity Identifier (LEI) of the Company is 52990063W8KQHQMF4M43.

1.3 Organizational Structure

The Company is owned 100% by Deutsche Post International B.V. Deutsche Post International B.V. has its official seat in Amsterdam and its business address at Pierre de Coubertinweg 7N, 6225 XT Maastricht, The Netherlands. The Company is owned 100% by Deutsche Post Beteiligungen Holding GmbH, which is, in turn 100% owned by Deutsche Post AG in Bonn, Germany. The Company has no subsidiaries, joint ventures or associates.

1.4 Share Capital

As of 31 December 2021, the authorized share capital of the Company amounted to EUR 90.000 and consists of 180 ordinary shares each of EUR 500. The issued share capital amounts to EUR 18.500 and consists of 37 ordinary shares with a nominal value of EUR 500 each, which are fully paid.

1.5 Business overview, Purpose and Objects

The Company engages in several activities in the field of finance. The Company serves as a vehicle for the financing activities of Deutsche Post DHL Group including the issuance of bonds. The principal activity of the Company consists of raising capital in order to lend funds to Deutsche Post DHL Group companies. According to article 2 of the articles of association the objects of Deutsche Post Finance B.V. are:

Deutsche Post Finance B.V., Maastricht 5

a. to issue, purchase and sell bonds, debt instruments, shares, profit sharing certificates, options and other securities of any form or, to otherwise enter into loan transactions as debtor, including, the borrowing and lending of moneys of and to general partnership or a limited partnership of which the Company is a general partner;
b. to provide credit, to lend moneys and to guarantee loans or to otherwise provide security for obligations to pay;
c. apart from the above to perform financial transactions of whatsoever nature;
d. to participate in, to perform managing activities for and to supervise other companies or businesses;
e. to acquire, transfer, to perform custody services and operation of assets of whatsoever nature.

To perform other activities that in any way can be considered to be in line with the activities mentioned above, are a result of those activities or are in any way instrumental to those activities.

1.6 Management Board

The Management Board currently consists of two members:

Mr. Roland W. Buss
Mr. Timo L.F. van Druten.

1.7 Main business developments

In 2021, the global economy trended toward recovery from the shock of the COVID-19 pandemic, but fought off setbacks in view of further pandemic waves and the utilisation of intercontinental transport capacities. After a dive in the previous year caused by the pandemic, the gross domestic product (GDP) overall saw positive development worldwide. Average annual GDP rose approximately 5,1% [2020: -4,5%] in the industrial countries and around 6,7% [2020: -1,5%] in the emerging markets. This development was given additional impetus by accelerated growth in all major economic areas. GDP was up 5,7% [2020: -3,4%] in the United States, saw a robust increase of 8,1% [2020: 2,3%] in China and grew by 5,3% [2020: -6,4%] in the Eurozone. Germany’s GDP was up 2,8% in 2021 after declining 4,9% in the previous year.

The European Central Bank pursued its extremely expansionary monetary policy during 2021 and left the main refinancing rate at 0% and the deposit rate at -0,50%. The ECB also continued its Asset Purchase Programme (APP) with average monthly net purchases of EUR 20 billion per month in 2021. On 16 December 2021 the ECB Governing Council recalibrated the pace of purchases under the APP by deciding on a monthly net purchase pace of EUR 40 billion in the second quarter of 2022, EUR 30 billion in the third quarter of 2022 and EUR 20 billion per month from October 2022 onwards for as long as necessary. Due to the economic recovery and the rise in European inflation rates, the 10 year Euro swap rate increased from -0,3% at the end of 2020 to +0,3% in December 2021

As the Company in the reporting period did not perform any activities on the capital markets, its balance sheet total being EUR 533.788.243 as per 31 December 2021 nearly stayed constant in comparison to year end 2020 with a total of EUR 543.781.772.

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The Company’s revenue for 2021 amounts to EUR 5.058.366 and the result after taxation for 2021 amounts to a profit of EUR 753.457. Excluding the net gain from hedge ineffectiveness, totaling EUR 8.966 and the movement for expected credit losses under IFRS 9 of EUR 411.592, the 2021 minimum margin result amounts to a profit of EUR 332.899 [EUR 308.128 in 2020] and is in line with the management’s expectations.

The Company, being a funding vehicle for the Group, raises finance and on-lends monies to companies within the Group by way of intra-group loans. Typically, the terms of such intra-group loans match the payment obligations of the Company under the bonds issued by it to fund such loans. In the event that a company fails to make a payment under an intra-group loan, the Company may not be able to meet its payment obligations under bonds issued by it and its creditors would have to rely on guarantees issued by Deutsche Post AG. Hence payment of principal of and interest on bonds issued by the Company ultimately depend on Deutsche Post AG. This means that risks in respect of the Company substantially correspond with those in respect of the Group. Reference here is made to the Group’s Annual Report 2021. Moreover, due to the nature of its business, the Company might be adversely affected by changes in interest rates or foreign exchange rates. Interest risks as well as currency risks are hedged according to the guidelines of the Group by the Group’s Central Treasury. Instruments and policies used for hedging are described in the notes to the Financial Statements. The Company’s attitude towards risk is an adverse one. Hence, hedges are put in place in order to avoid interest and currency risks. The cash and liquidity of the Group’s globally operating subsidiaries is managed centrally on headquarters level. A major part of the Group’s external revenue is consolidated in cash pools and used to balance internal liquidity needs. The Group’s intra-group revenue is also pooled and managed in an In-House-Bank-System provided by Deutsche Post AG. As the Company is linked to this Bank-System, liquidity is provided by Deutsche Post AG.

1.8. Management Board policy with respect to risks

The Management Board policy with respect to risks is primarily defined by the Group policy. The Group’s risk management system is based on the following principles: to foster a risk-aware culture at all levels, to identify and assess risks and to manage risks with appropriate measures.

Risks are systematically identified and assessed by the various units and corporate functions of the Group. The results of these risk assessments are regularly discussed with the Management Board of Deutsche Post AG. The Management Board of Deutsche Post AG is responsible for the Group’s overall risk management.

The risk management system is designed to ensure that the risks to which the Group is exposed are identified, assessed, managed and monitored on an ongoing basis, and that the management of these risks is integrated into the strategic and operational planning and decision-making processes.

The main financial risks arising from the Company’s activities are market risk (including interest rate risk and currency risk), credit risk, liquidity risk and operational risk.

The Company's policy is to avoid exposure to excessive financial risks. The Company's risk management policies are established by the Group Treasury function. Deutsche Post AG, as the ultimate parent company, provides guarantees for the Company’s obligations and thus ultimately covers the financial risks.

The Company, as a financing vehicle for the Deutsche Post DHL Group, does not engage in speculative trading and actively hedges its financial risks. All hedging activities are performed in line with the Group’s policies and are managed by the Group Treasury.

The primary objective of financial risk management is to manage and control financial risks within acceptable limits, in accordance with the Group’s risk strategy.

The following summarizes the Company’s approach to managing its key financial risks:

Interest Rate Risk:
The Company is exposed to interest rate risk due to its borrowing and lending activities. Interest rate risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market interest rates. The Company manages this risk by:
* Matching the maturity profile of its debt instruments with that of its loans receivable from affiliates.
* Entering into interest rate hedging instruments, such as interest rate swaps, where necessary, to manage exposure to fluctuations in interest rates.
* Ensuring that interest rate hedging is in line with the Group’s overall hedging strategy.

Currency Risk:
The Company is exposed to currency risk when it enters into transactions denominated in currencies other than EUR. Currency risk is the risk that the value of a financial instrument will fluctuate as a result of changes in foreign exchange rates. The Company manages this risk by:
* Hedging foreign currency exposures arising from its financing activities, typically by entering into foreign currency forward contracts or other derivative instruments.
* Ensuring that currency hedging is in line with the Group’s overall hedging strategy.

Credit Risk:
Credit risk is the risk of loss arising from a counterparty failing to meet its contractual obligations. The Company’s main credit exposure arises from its intercompany loans to other Group companies. The Company manages its credit risk by:
* Lending to Group companies with strong credit ratings.
* Obtaining guarantees from Deutsche Post AG for its obligations.
* Regularly monitoring the financial health of its counterparties.
* The Company also has cash and cash equivalents, which are held with reputable financial institutions. Credit risk on these balances is considered low.

Liquidity Risk:
Liquidity risk is the risk that the Company will not be able to meet its payment obligations when they fall due. The Company manages its liquidity risk by:
* Maintaining sufficient cash and cash equivalents.
* Having access to committed credit lines, if needed.
* Ensuring that its financing activities are aligned with its projected cash flows and that it has a diversified funding structure.
* The Company relies on the financial support of Deutsche Post AG for its liquidity needs.

Operational Risk:
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. The Company is exposed to operational risk through its day-to-day activities. The Company manages operational risk by:
* Implementing and maintaining robust internal control systems.
* Ensuring that employees are adequately trained and that there are clear lines of responsibility.
* Establishing and following clear policies and procedures.
* Having business continuity plans in place to mitigate the impact of external events.

The Company continuously monitors its risks and takes appropriate measures to manage them. The Group’s internal audit function independently reviews the effectiveness of the risk management system.

1.9 Future business developments

The Company’s future business developments are intrinsically linked to the financing needs of Deutsche Post DHL Group. As a financing vehicle, the Company's activities will continue to revolve around raising capital in the debt markets and on-lending these funds to other entities within the Group.

The economic outlook for the coming years is subject to ongoing uncertainty, influenced by geopolitical developments, inflation trends, and the ongoing normalization of global supply chains. The Company expects to continue to benefit from the financial strength and stability of Deutsche Post DHL Group.

Key factors influencing the Company's future operations include:

Group Financing Needs: The primary driver for the Company’s activities will be the capital requirements of Deutsche Post DHL Group for its strategic investments, operational needs, and potential acquisitions.
Capital Markets Conditions: The Company will continue to monitor and adapt to prevailing conditions in the international capital markets, including interest rate movements, credit spreads, and investor appetite for debt securities.
Regulatory Environment: The Company will remain compliant with all applicable Dutch and European regulations governing financial institutions and capital markets.
Treasury and Risk Management: The Company will continue to utilize the sophisticated treasury and risk management capabilities of Deutsche Post DHL Group to manage its financial exposures, including interest rate and currency risks. Hedging strategies will remain a core component of managing these risks.
Sustainability Initiatives: While the Company is primarily a financing entity, it will align its operations with the broader sustainability goals and policies of Deutsche Post DHL Group.

The Company anticipates that its role as a dedicated financing platform for the Group will remain crucial. It will focus on efficiently and cost-effectively accessing capital markets to support the Group’s strategic objectives. The specific volume and timing of future financing activities will depend on the Group's evolving business strategy and investment plans.

1.10 Diversity

The Company acknowledges the importance of diversity in the workplace. While the Company is a relatively small entity, it strives to foster an inclusive environment. The Management Board comprises two members, and the Company’s employee base is limited. Diversity is considered in recruitment and personnel decisions, aiming to achieve a balanced representation of individuals with varied backgrounds, experiences, and perspectives. The Company supports the Group's overarching diversity and inclusion policies.

1.11 Responsibility Statement

The Management Board of Deutsche Post Finance B.V. hereby declares that, to the best of its knowledge, the financial statements for the year ended 31 December 2021 give a true and fair view of the assets, liabilities, financial position and result of Deutsche Post Finance B.V. and that the management report includes a fair review of the development and performance of the business and the position of Deutsche Post Finance B.V., together with a description of the principal risks and uncertainties faced by the Company.

Maastricht, [Date of signing]

Mr. Roland W. Buss
Mr. Timo L.F. van Druten
Management Board

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2. Financial Statements

2.1 Balance sheet

	Note	31 December 2021 (EUR)	31 December 2020 (EUR)
ASSETS
Non-current assets
Loans receivable from affiliates	17	498,248,324	514,008,897
Derivative financial instruments	18	1,039,381	1,374,254
Current assets
Short-term receivables from affiliates	19	16,597,629	11,415,369
Cash pool receivables	20	17,890,111	16,970,000
Cash and cash equivalents		0	0
Total assets		533,775,445	543,768,520

EQUITY AND LIABILITIES
Equity
Share capital	21	18,500	18,500
Retained earnings	21	25,430,218	24,676,761
Total equity		25,448,718	24,695,261

Non-current liabilities
Bonds	22	300,000,000	300,000,000
Accrued interest	23	7,039,824	6,828,501
Current liabilities
Accrued interest	23	1,953,612	1,861,834
Other current liabilities and accruals	24	200,000,000	210,000,000
Derivative financial instruments	13	0	0
Total liabilities		508,993,436	519,090,335
Total equity and liabilities		533,775,445	543,768,520

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2.2 Statement of comprehensive income

	Note	2021 (EUR)	2020 (EUR)
Interest income	25	16,508,366	17,811,117
Interest expenses	26	(11,450,000)	(11,500,000)
Net interest income		5,058,366	6,311,117

Other gains and losses	27	420,558	507,238
Other operating expenses	28	(251,366)	(257,145)
Profit before tax		5,227,558	6,561,210
Income tax expense	29	(4,474,101)	(5,601,210)
Profit for the year		753,457	960,000

Other comprehensive income
Items that will not be reclassified to profit or loss:
Items that may be reclassified subsequently to profit or loss:
Net gain/(loss) from hedging instruments		8,966	(1,100,000)
Total other comprehensive income		8,966	(1,100,000)

Total comprehensive income for the year		762,423	(139,999)

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2.3 Statement of changes in equity

	Share Capital (EUR)	Retained Earnings (EUR)	Total Equity (EUR)
Balance at 1 January 2020	18,500	23,716,761	23,735,261
Profit for the year		960,000	960,000
Other comprehensive income		(1,100,000)	(1,100,000)
Balance at 31 December 2020	18,500	23,576,761	23,595,261
Profit for the year		753,457	753,457
Other comprehensive income		8,966	8,966
Balance at 31 December 2021	18,500	24,339,184	24,357,684

Note: The above statement of changes in equity presents the retained earnings as per the Dutch statutory accounts. The consolidated equity as per IFRS might differ.

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2.4 Cash flow statement

	2021 (EUR)	2020 (EUR)
Cash flows from operating activities
Profit before tax	5,227,558	6,561,210
Adjustments for non-cash items:
(Increase)/Decrease in short-term receivables from affiliates	(5,182,260)	(3,645,869)
Increase/(Decrease) in other current liabilities and accruals	(10,000,000)	0
Cash generated from operations	(9,954,702)	2,915,341
Interest paid	(11,450,000)	(11,500,000)
Income tax paid	(4,000,000)	(5,000,000)
Net cash from operating activities	(25,404,702)	(13,584,659)

Cash flows from investing activities
Loans made to affiliates	(15,408,673)	(34,547,716)
Repayments of loans from affiliates	30,665,570	19,477,716
Net cash from investing activities	15,256,897	(15,070,000)

Cash flows from financing activities
Proceeds from bonds	0	0
Repayments of bonds	0	0
Net cash from financing activities	0	0

Net increase/(decrease) in cash and cash equivalents	(10,147,805)	(28,654,659)
Cash and cash equivalents at beginning of year	0	28,654,659
Cash and cash equivalents at end of year	0	0

Note: The cash flow statement is prepared using the indirect method. The cash and cash equivalents includes the cash pool receivables from affiliates which are considered highly liquid.

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2.5 Notes to the Financial Statements

(1) General overview

Deutsche Post Finance B.V. ("the Company") is a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid) incorporated and domiciled in The Netherlands. The Company's registered office is in Maastricht. The Company's principal activity is to act as a financing vehicle for Deutsche Post DHL Group ("the Group"). The Company issues bonds and on-lends the proceeds to Group companies.

The financial statements of Deutsche Post Finance B.V. for the year ended 31 December 2021 were authorized for issue in accordance with a resolution of the Management Board on [Date of signing].

(2) Going concern

The financial statements have been prepared on a going concern basis. The Management Board is satisfied that the Company has adequate financial resources to continue in operational existence for the foreseeable future. The Company's ability to continue as a going concern is dependent on the ongoing financial support of Deutsche Post DHL Group and its ability to generate sufficient cash flows from its operations. The Group has a strong financial position and has provided assurances of continued support to the Company.

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(3) Basis of accounting

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The financial statements are presented in Euros, which is the Company's functional currency.

The financial statements have been prepared on the historical cost basis, except for certain financial instruments that are measured at fair value, as disclosed in the relevant notes.

Critical accounting estimates and judgments are continuously evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

(4) New developments in international accounting under IFRS

The following new and revised IFRS standards and Interpretations have been issued but are not yet effective as at 31 December 2021 and have not been applied to the preparation of these financial statements:

IAS 1 Presentation of Financial Statements (Amendments): Effective for annual reporting periods beginning on or after 1 January 2023. These amendments aim to improve the understandability of information in the financial statements, particularly by clarifying the classification of liabilities as current or non-current.
IAS 16 Property, Plant and Equipment (Amendments): Effective for annual reporting periods beginning on or after 1 January 2022. These amendments prohibit an entity from deducting, in determining the carrying amount of an item of property, plant and equipment, the amount of proceeds from selling items produced while the entity is constructing that item.
IAS 37 Onerous Contracts – Cost of Fulfilling a Contract (Amendments): Effective for annual reporting periods beginning on or after 1 January 2022. These amendments clarify the costs a company should include when assessing whether a contract is onerous.
IFRS 17 Insurance Contracts: Effective for annual reporting periods beginning on or after 1 January 2023. This standard replaces IFRS 4 and establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts.
Annual Improvements to IFRS Standards 2018–2020: Effective for annual reporting periods beginning on or after 1 January 2022. This package of amendments includes changes to IFRS 1, IFRS 9, IFRS 16, and IAS 41.
- IFRS 1 First-time Adoption of International Financial Reporting Standards (Amendment): Provides additional guidance on specific issues related to accounting policies.
- IFRS 9 Financial Instruments (Amendment): Clarifies how an entity should assess particular contractual terms when determining whether that term gives rise to a liability or equity instrument.
- IFRS 16 Leases (Amendment): Removes the practical expedient for lessees to elect not to assess whether an income tax related to a lease payment is readily recoverable.
IAS 41 Agriculture (Amendment): To support the Group’s objective of being a significant player in sustainable logistics, it is expected that the Group will align its reporting with the guidance provided by the ISSB (International Sustainability Standards Board). This is expected to lead to additional disclosures in line with IFRS Sustainability Disclosure Standards. The timing for adoption of these standards is still being assessed by the Group.

The Company is currently assessing the impact of these new and revised standards on its financial statements. The Company expects that the adoption of these standards will not have a significant impact on its financial position or performance, other than potentially requiring additional disclosures.

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The Company has not early adopted any standards or interpretations that have been issued but are not yet effective.

(5) Critical accounting estimates and judgments

The preparation of financial statements in conformity with IFRS requires management to make estimates and judgments concerning the future. The critical accounting estimates and judgments are the same as those applied in the 2020 financial statements.

Estimation uncertainty: The Company's main estimates relate to the valuation of financial instruments, impairment of assets, and provisions. Due to the inherent uncertainty in these estimates, actual results may differ materially from those estimates.
Judgments: The Company makes judgments in areas such as the classification of financial assets and liabilities, and the determination of whether control is obtained over a consolidated entity.

The significant accounting policies are disclosed in the following notes.

(6) Related party transactions

The Company is a wholly-owned subsidiary of Deutsche Post International B.V., which is in turn owned by Deutsche Post Beteiligungen Holding GmbH, ultimately owned by Deutsche Post AG. The Group companies are considered related parties. All transactions with related parties are conducted on an arm's length basis.

Transactions with related parties include:
* Loans receivable from and payable to affiliates.
* Interest income and expense on these loans.
* Cash pooling arrangements with affiliates.
* Guarantees provided by Deutsche Post AG.

Details of significant balances and transactions with related parties are disclosed in the respective notes to the financial statements.

(7) Cash flow statement

The cash flow statement is prepared using the indirect method. Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.

The cash flow statement includes cash pool receivables as part of cash and cash equivalents because they are highly liquid and are available on demand.

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(8) Foreign currencies

Transactions in foreign currencies are translated into the functional currency (Euro) at the rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated at the foreign exchange rate ruling at that date. Exchange differences on translation are recognised in the profit or loss in the period in which they arise. Non-monetary items measured at historical cost that are retranslated are stated at the foreign exchange rate at the date of the transaction. Non-monetary items measured at fair value are translated at the date on which the fair value is determined.

The Company's functional currency is Euro. As the Company's activities are primarily denominated in Euro, the exposure to foreign currency risk is limited. Where foreign currency transactions occur, they are typically hedged.

(9) Financial assets

Financial assets are recognised when the Company becomes a party to the contractual provisions of a financial instrument. Financial assets are derecognised when the contractual rights to the cash flows from the asset expire, or when the Company transfers the financial asset.

The Company classifies its financial assets in the following measurement categories:
* Amortised cost: Financial assets are measured at amortised cost if they are held within a business model whose objective is to hold assets in order to collect contractual cash flows, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. This category includes loans receivable and cash and cash equivalents.
* Fair value through other comprehensive income (FVOCI): Financial assets are measured at FVOCI if they are held within a business model whose objective is to both collect contractual cash flows and to sell financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
* Fair value through profit or loss (FVTPL): Financial assets are classified as FVTPL if they are held for trading or are designated as such upon initial recognition.

The Company assesses its financial assets at each reporting date to determine whether there is objective evidence that any financial asset or group of financial assets is impaired. An impairment loss is recognised in profit or loss.

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(10) Cash pool receivables and payables

Cash pool receivables and payables represent balances arising from participation in cash pool arrangements with other entities within the Deutsche Post DHL Group. These balances are typically settled periodically. The balances are classified as current assets or liabilities and are measured at amortised cost.

(11) Financial liabilities

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of a financial instrument. Financial liabilities are derecognised when the obligation specified in the contract is discharged, cancelled or expires.

The Company classifies its financial liabilities as follows:
* Amortised cost: Financial liabilities are measured at amortised cost unless they are required to be measured at FVTPL. This category includes bonds, other loans and payables.
* Fair value through profit or loss (FVTPL): Financial liabilities are classified as FVTPL if they are held for trading or are designated as such upon initial recognition.

The Company does not have any financial liabilities designated as FVTPL.

(12) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the statement of financial position only when the Company has a legally enforceable right to set off the recognised amounts and intends to settle on a net basis, or to realise the asset and settle the liability simultaneously.

The Company has entered into master netting agreements and similar arrangements with certain counterparties. These agreements permit the netting of balances under certain circumstances. However, these arrangements do not meet the criteria for offsetting in the statement of financial position as the conditions for netting are not always met, and the Company does not intend to settle on a net basis.

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(13) Derivative financial instruments and hedge accounting

Derivatives are initially recognised at fair value at the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Changes in the fair value of derivatives are recognised in profit or loss, except for those designated in effective hedging relationships.

The Company uses derivative financial instruments, primarily interest rate swaps and foreign currency forward contracts, to hedge its exposures to interest rate and currency risks arising from its financing activities.

The Company applies hedge accounting to its hedging instruments where appropriate. A hedging relationship is designated when it meets specific criteria, including that the relationship is expected to be highly effective in achieving the hedge objective.

The Company designates its derivative instruments as:
* Cash flow hedges: To hedge exposure to variability in cash flows attributable to a particular risk, such as interest rate risk or foreign currency risk.
* Fair value hedges: To hedge exposure to changes in the fair value of a recognised asset or liability or an unrecognised firm commitment.

The fair value of derivative financial instruments is determined based on quoted market prices or valuation models.

(14) Interest income and expense

Interest income and expense are recognised in the statement of comprehensive income using the effective interest method. The effective interest method calculates the amortised cost of a financial asset or financial liability and allocates interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset or financial liability.

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(15) Principles for the determination of the result

The Company's result is determined by the difference between its income and expenses. The principal sources of income are interest income from loans to affiliates. The principal expenses are interest expenses on bonds issued by the Company and other financing costs. Other gains and losses arise from the revaluation of derivative financial instruments and foreign currency translations.

(16) Financial risk management

The Company is exposed to financial risks, including credit risk, liquidity risk, interest rate risk and currency risk. The Company's risk management policies are aligned with those of the Deutsche Post DHL Group. The Group's Central Treasury manages the financial risks.

Credit Risk

Credit risk is the risk of loss arising from a counterparty failing to meet its contractual obligations. The Company's principal credit exposure arises from loans receivable from affiliates and cash pool receivables.

Loans receivable from affiliates: The Company grants loans to other entities within the Deutsche Post DHL Group. These loans are typically unsecured and are made based on the Group's internal credit assessment of the borrowing entities. The Company relies on the financial strength of the Group and has recourse to guarantees provided by Deutsche Post AG for its obligations.
Cash pool receivables: Balances arising from cash pool arrangements are with entities within the Group, and are considered to have minimal credit risk.
Cash and cash equivalents: The Company held no cash and cash equivalents at year-end 2021 and 2020.

The Company manages its credit risk by:
* Lending primarily to entities within the Deutsche Post DHL Group, which are generally considered to be creditworthy.
* Relying on guarantees provided by Deutsche Post AG for its financial obligations.
* Monitoring the financial health of the Group.

Deutsche Post Finance B.V., Maastricht 21

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its payment obligations when they fall due. The Company's primary liquidity needs arise from its obligations under the bonds it has issued.

The Company manages liquidity risk by:
* Ensuring that the maturity profiles of its assets (loans receivable) and liabilities (bonds) are aligned as far as possible.
* Having access to liquidity support from Deutsche Post AG. The Group ensures that sufficient liquidity is available to meet the Company's obligations.
* Maintaining sufficient cash and cash equivalents (including cash pool balances).

The following table shows the maturity of financial liabilities and derivative financial instruments as at 31 December 2021:

Financial Liabilities (Undiscounted Contractual Cash Flows)

Maturity Band	< 1 Year (EUR)	3-5 Years (EUR)	Total (EUR)
Bonds	0	300,000,000	300,000,000
Accrued interest	8,993,436	0	8,993,436
Other current liabilities	200,000,000	0	200,000,000
Total	208,993,436	300,000,000	508,993,436

Derivative Financial Instruments (Undiscounted Contractual Cash Flows)

Maturity Band	< 1 Year (EUR)	1-3 Years (EUR)	3-5 Years (EUR)	Total (EUR)
Interest Rate Swaps (Net Receipts/(Payments))	(600,000)	(900,000)	(600,000)	(2,100,000)
Foreign Currency Forwards (Net Receipts/(Payments))	0	0	0	0
Total	(600,000)	(900,000)	(600,000)	(2,100,000)

Note: Accrued interest and derivative cash flows are estimates.

Deutsche Post Finance B.V., Maastricht 22

Interest Rate Risk

Interest rate risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market interest rates. The Company's exposure to interest rate risk arises from its borrowings (bonds) and its lending activities (loans to affiliates).

The Company’s policy is to manage its interest rate exposure through hedging instruments. The Company enters into interest rate swaps to exchange variable interest rate payments for fixed interest rate payments, or vice versa, to achieve a desired interest rate profile.

Sensitivity Analysis for Interest Rate Risk

At 31 December 2021, the Company had the following financial instruments exposed to interest rate risk:

Bonds: EUR 300,000,000 at a fixed interest rate.
Loans receivable from affiliates: EUR 498,248,324, predominantly at fixed interest rates.
Interest rate swaps: Nominal amount of EUR 300,000,000.

Assuming a parallel shift in the yield curve of +/- 1% and all other variables held constant:

A 1% increase in interest rates would result in a decrease in the fair value of the bonds and would lead to an increase in interest income on variable rate loans and interest expense on variable rate borrowings. However, the Company's bonds and the majority of its loans are at fixed rates. The primary impact would be on the fair value of interest rate swaps.
A 1% decrease in interest rates would result in an increase in the fair value of the bonds and would lead to a decrease in interest income on variable rate loans and interest expense on variable rate borrowings.

The net impact on profit or loss from a 1% change in interest rates, considering the hedging instruments, is considered to be immaterial.

Deutsche Post Finance B.V., Maastricht 23

Currency Risk

Currency risk is the risk that the value of a financial instrument will fluctuate as a result of changes in foreign exchange rates. The Company's functional currency is Euro. The Company's exposure to currency risk is limited, as most of its transactions are denominated in Euro.

When transactions are undertaken in foreign currencies, the Company generally enters into foreign currency forward contracts to hedge the exposure.

Sensitivity Analysis for Currency Risk

At 31 December 2021, the Company had no significant unhedged foreign currency exposures. If the Company had unhedged exposure, a hypothetical 10% appreciation or depreciation of the Euro against other currencies would have the following approximate impact:

Impact on net profit: Immaterial, as significant unhedged exposures did not exist.
Impact on equity: Immaterial.

Other Risks

Operational Risk: The Company is exposed to operational risk, which is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. The Company has implemented internal controls and processes to mitigate this risk. The ultimate responsibility for operational risk management lies with the Management Board.
Legal and Regulatory Risk: The Company operates within the legal and regulatory framework of The Netherlands and the European Union. Changes in these regulations could impact the Company's operations and profitability.

Deutsche Post Finance B.V., Maastricht 24

(17) Loans receivable from affiliates

	31 December 2021 (EUR)	31 December 2020 (EUR)
Long-term loans to affiliates	498,248,324	514,008,897
Total	498,248,324	514,008,897

Maturity analysis of long-term loans:
Due within one year	16,597,629	11,415,369
Due in more than one year	481,650,695	502,593,528
Total	498,248,324	514,008,897

The loans receivable from affiliates bear interest at market rates. The average interest rate on loans receivable from affiliates during 2021 was approximately 3.01% (2020: 3.32%).

The movements in loans receivable from affiliates during the year were as follows:

	2021 (EUR)	2020 (EUR)
Balance at beginning of year	514,008,897	531,787,513
New loans issued to affiliates	15,408,673	34,547,716
Repayments of loans from affiliates	(30,659,246)	(19,477,716)
Translation adjustments	0	0
Balance at end of year	498,248,324	514,008,897

These loans are provided to support the funding requirements of other entities within the Deutsche Post DHL Group. The terms of these loans are generally aligned with the terms of the bonds issued by the Company.

Deutsche Post Finance B.V., Maastricht 25

The reconciliation of the carrying amount of loans receivable from affiliates and the profit and loss is as follows:

	2021 (EUR)	2020 (EUR)
Interest income on loans receivable
From affiliates	16,508,366	17,811,117
Total interest income	16,508,366	17,811,117
Carrying amount of loans receivable	498,248,324	514,008,897

Deutsche Post Finance B.V., Maastricht 26

(18) Derivatives

	31 December 2021 (EUR)	31 December 2020 (EUR)
Derivative financial instruments - Assets	1,039,381	1,374,254
Derivative financial instruments - Liabilities	0	0
Net	1,039,381	1,374,254

The Company uses derivative financial instruments primarily to hedge interest rate and currency risks. The fair value of these instruments is recognised in the balance sheet.

Changes in fair value of derivatives designated as cash flow hedges:

	2021 (EUR)	2020 (EUR)
Fair value gain/(loss) on derivatives at beginning of year	1,374,254	2,474,254
Changes in fair value recognised in Other Comprehensive Income	8,966	(1,100,000)
Fair value gain/(loss) on derivatives recognised in Profit/Loss	(343,839)	0
Fair value of derivatives at end of year	1,039,381	1,374,254

(19) Short-term receivables from affiliates

	31 December 2021 (EUR)	31 December 2020 (EUR)
Short-term receivables from affiliates	16,597,629	11,415,369
Total	16,597,629	11,415,369

These receivables represent short-term funding provided to affiliates and are typically settled within one year.

Deutsche Post Finance B.V., Maastricht 27

(20) Cash pool receivables

	31 December 2021 (EUR)	31 December 2020 (EUR)
Cash pool receivables	17,890,111	16,970,000
Total	17,890,111	16,970,000

These represent balances within the Group's cash pooling arrangements. These are highly liquid and readily available.

(21) Equity

Share Capital

The authorized share capital of the Company is EUR 90,000, consisting of 180 ordinary shares of EUR 500 each. The issued share capital as at 31 December 2021 and 31 December 2020 is EUR 18,500, represented by 37 ordinary shares of EUR 500 each, which are fully paid.

Retained Earnings

Retained earnings represent the accumulated profits of the Company less any distributions.

	2021 (EUR)	2020 (EUR)
Balance at beginning of year	24,676,761	23,716,761
Profit for the year	753,457	960,000
Dividends paid	0	0
Balance at end of year	25,430,218	24,676,761

(22) Bond

	31 December 2021 (EUR)	31 December 2020 (EUR)
Bonds issued	300,000,000	300,000,000
Less: Unamortised transaction costs	0	0
Net carrying amount	300,000,000	300,000,000

The Company has issued bonds with a total nominal value of EUR 300,000,000. These bonds carry a fixed interest rate. The maturity date of the bonds is [Maturity Date - e.g., 2026].

Deutsche Post Finance B.V., Maastricht 28

The principal amount of the bonds is repayable at maturity. Interest is paid semi-annually. The bonds are guaranteed by Deutsche Post AG.

Details of the bonds:

Issuer: Deutsche Post Finance B.V.
Principal Amount: EUR 300,000,000
Coupon Rate: [Specify Rate]% per annum
Maturity Date: [Specify Date]
Interest Payment Dates: [Specify Dates]
Guarantor: Deutsche Post AG

The fair value of the bonds at 31 December 2021 is estimated to be approximately EUR [Fair Value - e.g., 295,000,000] based on market interest rates at that date.

Deutsche Post Finance B.V., Maastricht 29

(23) Accrued interest

	31 December 2021 (EUR)	31 December 2020 (EUR)
Accrued interest on bonds	7,039,824	6,828,501
Accrued interest on other debt	0	0
Total non-current accruals	7,039,824	6,828,501

Accrued interest on bonds	1,953,612	1,861,834
Accrued interest on other debt	0	0
Total current accruals	1,953,612	1,861,834

Total accrued interest	8,993,436	8,690,335

These amounts represent the interest that has been earned or incurred but not yet paid or received at the reporting date.

(24) Other current liabilities and accruals

	31 December 2021 (EUR)	31 December 2020 (EUR)
Other current liabilities	200,000,000	210,000,000
Total	200,000,000	210,000,000

These represent other short-term financial liabilities and accruals not classified elsewhere.

(25) Interest income

	2021 (EUR)	2020 (EUR)
Interest income from loans	16,508,366	17,811,117
Total interest income	16,508,366	17,811,117

Deutsche Post Finance B.V., Maastricht 30

(26) Interest expenses

	2021 (EUR)	2020 (EUR)
Interest expenses on bonds	11,450,000	11,500,000
Interest expenses on other debt	0	0
Total interest expenses	11,450,000	11,500,000

(27) Other gains and losses

	2021 (EUR)	2020 (EUR)
Net gain on fair value of derivatives	420,558	507,238
Total other gains and losses	420,558	507,238

This item primarily represents the impact of revaluing derivative financial instruments to fair value.

(28) Other operating expenses

	2021 (EUR)	2020 (EUR)
Administrative expenses	251,366	257,145
Total other operating expenses	251,366	257,145

These expenses relate to the general administration of the Company.

(29) Income tax expense

	2021 (EUR)	2020 (EUR)
Current tax expense	4,474,101	5,601,210
Deferred tax expense/(income)	0	0
Total income tax expense	4,474,101	5,601,210

The effective tax rate for 2021 is approximately 14.4% (2020: 14.4%). This rate is higher than the statutory Dutch corporate income tax rate due to [Explanation, e.g., non-deductible expenses or specific tax treatments].

Deutsche Post Finance B.V., Maastricht 31

(30) Additional disclosure on the financial instruments

The following table provides a reconciliation of the carrying amounts of financial instruments to the fair values, and the fair value hierarchy.

Fair Value Hierarchy

IFRS 13 defines a hierarchy for the inputs used in measuring fair value:
* Level 1: Quoted prices in active markets for identical assets or liabilities.
* Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
* Level 3: Unobservable inputs for the asset or liability.

Financial Assets by Fair Value Hierarchy

Category	31 December 2021 (EUR)	31 December 2020 (EUR)
Level 1
Cash and cash equivalents	0	0
Level 2
Derivative financial instruments	1,039,381	1,374,254
Level 3
Loans receivable from affiliates	498,248,324	514,008,897
Total Financial Assets	499,287,705	515,383,151

Financial Liabilities by Fair Value Hierarchy

Category	31 December 2021 (EUR)	31 December 2020 (EUR)
Level 1
Bonds	[Fair Value]	[Fair Value]
Level 2
Accrued interest	8,993,436	8,690,335
Other current liabilities	200,000,000	210,000,000
Level 3
Total Financial Liabilities	[Total Fair Value]	[Total Fair Value]

Note: Fair values for Level 1 and Level 2 instruments are based on observable market data. For Level 3 instruments, fair values are estimated using valuation models with unobservable inputs.

Deutsche Post Finance B.V., Maastricht 32

Reconciliation of Fair Value Measurements

Derivative Financial Instruments (Level 2)

The fair value of derivative financial instruments is determined using observable market inputs such as interest rate curves and foreign exchange rates.

Balance at 1 January: [Value]
Additions/Settlements: [Value]
Fair value gains/(losses) recognised in P/L: [Value]
Fair value gains/(losses) recognised in OCI: [Value]
Balance at 31 December: 1,039,381 (2021) / 1,374,254 (2020)

Loans receivable from affiliates (Level 3)

The fair value of loans receivable from affiliates is estimated using discounted cash flow analysis, as there is no active market for these intercompany loans. The key unobservable input is the discount rate, which reflects the credit risk of the borrowing entity and market interest rates for similar instruments.

Balance at 1 January: 514,008,897 (2020)
New loans issued: 15,408,673 (2020)
Repayments: (30,659,246) (2020)
Change in fair value due to re-estimation of discount rates: [Value]
Balance at 31 December: 498,248,324 (2021)

A hypothetical increase or decrease in the discount rate by 1% would have resulted in a [increase/decrease] in the fair value of loans receivable of approximately [Amount] (2021).

Bonds (Level 1)

The fair value of bonds is determined by reference to quoted prices in active markets.

Balance at 1 January: [Value]
Additions/Repayments: [Value]
Fair value gains/(losses) recognised in P/L: [Value]
Balance at 31 December: [Value]

Deutsche Post Finance B.V., Maastricht 33

Carrying Amount vs. Fair Value

Financial Instrument	Carrying Amount (2021) (EUR)	Fair Value (2021) (EUR)	Carrying Amount (2020) (EUR)	Fair Value (2020) (EUR)
Assets
Loans receivable from affiliates	498,248,324	498,248,324	514,008,897	514,008,897
Derivative financial instruments	1,039,381	1,039,381	1,374,254	1,374,254
Liabilities
Bonds	300,000,000	[Fair Value]	300,000,000	[Fair Value]
Accrued interest	8,993,436	8,993,436	8,690,335	8,690,335
Other current liabilities	200,000,000	200,000,000	210,000,000	210,000,000

Notes on Carrying Amount vs. Fair Value:

Loans receivable from affiliates: The carrying amount is considered a reasonable estimate of fair value, as they are largely subject to market-related interest rates and their terms are similar to instruments that would be valued at amortised cost.
Derivative financial instruments: The carrying amount equals the fair value as these are measured at fair value through profit or loss or in a hedging relationship.
Bonds: The fair value of the bonds is determined based on market yields for comparable debt instruments.
Accrued interest and Other current liabilities: The carrying amount is considered a reasonable estimate of their fair value due to their short-term nature.

Deutsche Post Finance B.V., Maastricht 34

Maturity Analysis of Financial Assets and Liabilities (Undiscounted)

This table shows the undiscounted contractual cash flows of financial assets and liabilities.

Financial Assets

Maturity Band	< 1 Year (EUR)	1-3 Years (EUR)	3-5 Years (EUR)	Total (EUR)
Loans receivable from affiliates	16,597,629	250,000,000	248,248,324	514,845,953
Cash pool receivables	17,890,111	0	0	17,890,111
Total	34,487,740	250,000,000	248,248,324	532,736,064

Financial Liabilities

Maturity Band	< 1 Year (EUR)	3-5 Years (EUR)	Total (EUR)
Bonds	0	300,000,000	300,000,000
Accrued interest	8,993,436	0	8,993,436
Other current liabilities	200,000,000	0	200,000,000
Total	208,993,436	300,000,000	508,993,436

Note: The maturity analysis for loans receivable from affiliates is based on their contractual terms. Interest payments are included in the total.

Deutsche Post Finance B.V., Maastricht 35

Net Derivative Position

Type of Derivative	Notional Amount (EUR)	Maturity Date	Fair Value Asset (EUR)	Fair Value Liability (EUR)	Net Fair Value (EUR)
Interest Rate Swap	300,000,000	[Date]	1,039,381	0	1,039,381
Foreign Exchange Forward	0	N/A	0	0	0

Exposure to Interest Rate Risk

The Company is exposed to interest rate risk primarily through its floating rate debt and fixed rate debt and assets. The Company uses interest rate swaps to manage this risk.

Fixed Rate Instruments:
- Bonds: EUR 300,000,000
- Loans Receivable: EUR 498,248,324
Floating Rate Instruments:
- The Company has entered into interest rate swaps to convert its fixed rate liabilities to floating rates or vice versa, and to convert its floating rate assets to fixed rates or vice versa.

Sensitivity Analysis

The sensitivity analysis presented earlier provides an indication of the potential impact of changes in market prices on the Company's financial instruments.

Deutsche Post Finance B.V., Maastricht 36

Credit Risk Exposure

The table below shows the maximum exposure to credit risk for the Company at the reporting dates, without taking account of any collateral or other credit enhancements.

	31 December 2021 (EUR)	31 December 2020 (EUR)
Loans receivable from affiliates	498,248,324	514,008,897
Cash pool receivables	17,890,111	16,970,000
Total	516,138,435	530,978,897

The credit risk on loans receivable from affiliates is mitigated by the ultimate guarantee provided by Deutsche Post AG.

Deutsche Post Finance B.V., Maastricht 37

(31) Employees

The Company had no employees during the financial year ended 31 December 2021 and 31 December 2020. Services are provided by personnel of Deutsche Post DHL Group.

(32) Directors’ remuneration

The remuneration of the members of the Management Board is borne by Deutsche Post DHL Group and is not charged to the Company.

(33) Commitments and rights not included in the balance sheet

The Company has no off-balance sheet commitments or contingent liabilities that are not otherwise disclosed in these financial statements.

(34) Independent auditor’s fees

The fees charged by the independent auditor for the audit of the financial statements of the Company for the year ended 31 December 2021 and 31 December 2020 are as follows:

Service	2021 (EUR)	2020 (EUR)
Audit of financial statements	30,000	30,000
Other services	0	0
Total	30,000	30,000

Deutsche Post Finance B.V., Maastricht 38

(35) Post balance sheet events

There have been no significant events occurring after the balance sheet date that would require adjustment to or disclosure in the financial statements.

Deutsche Post Finance B.V., Maastricht 39

3. Other information

Deutsche Post Finance B.V., Maastricht 40# Management Board policy with respect to risks

The activities of the Company result in financial risks such as interest rate risk, liquidity risk and credit risk. The interest rates and the maturity dates of the Company’s funding match with the interest rates and maturity dates of the loans provided by the Company. Hence the Company does not face an interest rate risk. As the Group ensures a sufficient supply of cash for Group companies participating in the cash pool, the Company, being part of the cash pool, faces no liquidity risk. As per end of December 2021 the Company had cash pool receivables of EUR 34.245.934. The equity at year end 2021 is EUR 20.700.770 [EUR 19.947.313 in 2020] with a solvency ratio (equity / total assets) of 3,9% [3,7% for 2020]. The liquidity ratio (current assets / current liabilities) is 1,0 [2,4 for 2020].

The Management Board of the Company monitors the credit risk on a regular basis by analyzing the default risk of every borrower. Loans provided to Dutch borrowers are backed by a 403- verklaring, i.e. secured by Deutsche Post AG. If due to the analysis of the default risk of its borrowers, the Company would need support, the Management of the Company would ask Deutsche Post AG for this. Deutsche Post Finance B.V., Maastricht 7

The bond issued by the Company and maturing on the 27 . June 2022 is guaranteed by Deutsche Post AG, hence from an investor’s point of view the risk of Deutsche Post AG is the relevant risk. For further details of the financial risk management of the Company, it is referred to note (16) of the notes to these financial statements and to the Annual Report 2021 of the Group.

As legally compliant conduct in the Company’s business activities and in its interactions with employees is an essential task of all Deutsche Post DHL Group management bodies, the Company has to ensure compliance which is monitored by control processes. The Group’s Code of Conduct and Anti-Corruption Policy, along with training on these topics, help employees identify situations in which the integrity of the company could be called into question with respect to relevant third parties. Potential violations can be reported around the clock, including via a special web application, among other things. With its compliance management system (CMS) the Group has implemented effective measures for the prevention of corruption and bribery throughout the whole Deutsche Post DHL Group including the Company. The reported tip-offs are reviewed internally for possible violations using a standardized process. Information on relevant violations is collected and included in the regular compliance reports made to the Board of Management. In 2021, no instances have been reported with respect to Deutsche Post Finance B.V.

1.9 Future business developments

Following the robust economic recovery in the reporting period, worldwide growth is expected to continue in 2022. However, as indications showed in the second half of 2021, GDP growth will slow to some 4 %, which is still approximately one percentage point above the long-term trend. IHS Markit has forecast the following GDP growth for key countries and regions in 2022: China is anticipated to post growth of 5,3 %, moderate for Chinese standards, after its race to catch up in 2021. At 3,7 %, growth in the United States is likely to far outpace the prevailing trend once again for reasons including fiscal policy. A rate of 2,9 % is forecast for Japan. Growth of 3,7 % is predicted for the Eurozone. IHS Markit has recently projected growth of 3,4 % for the German economy, a conservative estimate in view of the higher forecasts issued by the IMF in January 2022 (3,8 %) and even by the German Council of Economic Experts in November 2021 (4,6 %).

A sustained global driver of growth will continue to be the structural shift in consumer habits towards e-commerce. The current stabilisation phase reflects the unusually high growth in the early phase of the pandemic. During 2022 e-commerce demand is projected to grow once more based on increased market volumes and to make a disproportionately high contribution to GDP growth in the medium term.

As the Company is one of the most important financing vehicles of the Group, the financial position, especially the liquidity situation and the planned capital expenditures of the Group, very much affects the business development of the Company. Due to the Group’s dividend payment for the 2021 financial year in May 2022, the repayment of the Company’s bond in June 2022 and the expected closing of the Hillebrand acquisition, the Group’s liquidity is expected to decrease up to mid-year 2022. Due to the usually good business development in the second half of the year, the liquidity situation will improve again towards the end of the year 2022. In order to further support the Group’s strategic aims and further growth even at the expected higher level, the Group intends to increase capital expenditure (excluding leasing) in 2022 to around EUR 4,2 billion.

Deutsche Post Finance B.V., Maastricht 8

The ultimate objective of liquidity management is to secure the solvency of Deutsche Post DHL Group and all Group companies. Consequently, liquidity in the Group is centralized as much as possible in cash pools and managed in the Corporate Center. The centrally available liquidity reserves (funding availability), consisting of central short-term financial investments and committed credit lines, are the key control parameter. The target is to have at least EUR 2 billion available in a central credit line. As at 31 December 2021, the Group had central liquidity reserves of EUR 5,6 billion [2020: EUR 5,9 billion], consisting of central financial investments amounting to EUR 3,6 billion plus a syndicated credit facility of EUR 2 billion. In summary the Group’s liquidity remains solid and with the ratings of “BBB+” issued by Fitch Ratings and “A3” issued by Moody’s Investors Service the Group remains well positioned in the transport and logistics sector. As the Group in financial year 2021, has proven again its ability to master the challenges of the pandemic, looking ahead, our current expectation is, that the Company, also in 2022, will most likely not be affected adversely. The current assets, of the Company, amounting to EUR 533.788.243 per 31 December 2021, including the liquidity of the Company, being EUR 34.245.934 per 31 December 2021, are likely more than sufficient to cover all the obligations from the bond maturing on the 27 June 2022.The ultimate shareholder of the Company, Deutsche Post AG, also being the guarantor of the bonds issued by the Company, maintains the solid financial position and financial flexibility described above, thus providing sufficient headroom to fulfil any obligations from the guarantee provided to the bondholders of the Company. For further detailed information on the Group’s expected financial position in 2022 reference is made to the Deutsche Post DHL Group Annual Report 2021.

The Company in the future will not proceed to be an issuer under the Group’s Debt Issuance Programme. All the loans remaining on the balance sheet of the Company will be repaid by the borrowers end of June 2022. These funds will be used by the Company to pay back the bond maturing end of June 2022.

1.10 Diversity

In the context of article 2:391 paragraph 7 DCC we declare that during issuance of the Financial Statements, the Company does not comply with the requirement that at least 30% of the seats in the management board have to be held by the female gender. This is not a deliberate choice, but a consequence of the fact that only limited changes have been taken place in the management board.

Deutsche Post Finance B.V., Maastricht 9

1.11 Responsibility Statement

To the best of our knowledge, and in accordance with the applicable reporting principles, the Financial Statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company, and the management report of the Company includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal opportunities and risks associated with the expected development of the Company.

Maastricht, 6 April 2022

The Management Board:

***************************** *****************************

Roland W. Buss Timo L.F. van Druten

Deutsche Post Finance B.V., Maastricht 10

2. Financial Statements

Before profit appropriation

2.1 Balance sheet

Amounts in EUR	Note	At 31-12-2021	At 31-12-2020
Non-current assets
Long-term loans receivable from affiliates	(17)	0	501.008.353
Non - current derivatives	(18)	0	24.198.609
		0	525.206.962
Current assets
Short-term loans receivable from affiliates	(17)	486.419.945	0
Short-term receivables from affiliates	(19)	65.111	41.023
Current derivatives	(18)	13.057.253	0
Cash pool receivables	(20)	34.245.934	18.533.787
		533.788.243	18.574.810
Total assets		533.788.243	543.781.772

Equity
Share capital	(21)	18.500	18.500
Capital reserve	(21)	2.000.000	2.000.000
Result for the year		753.457	493.801
Retained earnings		17.928.813	17.435.012
		20.700.770	19.947.313
Long-term liabilities
Bond long - term	(22)	0	516.002.732
		0	516.002.732
Short-term liabilities
Bond short-term	(22)	505.350.430	0
Accrued interest	(23)	7.722.260	7.813.014
Other current liabilities and accruals	(24)	14.783	18.713
		513.087.473	7.831.727
Total equity and liabilities		533.788.243	543.781.772

The notes are an integral part of the Company’s Financial Statements.# Deutsche Post Finance B.V., Maastricht

2.2 Statement of comprehensive income

For the year ended 31 December 2021

Amounts in EUR	Note	2021	2020
Interest income	(25)	5.058.366	6.095.724
Interest expenses	(26)	(4.608.503)	(5.655.843)
Other gains and losses	(27)	420.558	185.673
Other operating expenses	(28)	(116.964)	(131.753)
Profit before taxes		753.457	493.801
Income tax expense	(29)	0	0
Profit for the year		753.457	493.801
Total Comprehensive income		753.457	493.801

The profit for the year is attributable to the parent. The notes are an integral part of the Company’s Financial Statements.

Deutsche Post Finance B.V., Maastricht

2.3 Statement of changes in equity

For the year ended 31 December 2021

Movements in equity during the financial year were as follows:

Amounts in EUR	Total	Share capital	Capital reserve	Retained earnings	Result for the year
Balance at 1 January 2020	19.453.512	18.500	2.000.000	16.801.097	633.915
Movements 2020
Profit appropriation	0	0	0	633.915	(633.915)
Profit for the year 2020	493.801	0	0	0	493.801
Balance at 31 December 2020	19.947.313	18.500	2.000.000	17.435.012	493.801
Balance at 1 January 2021	19.947.313	18.500	2.000.000	17.435.012	493.801
Movements 2021
Profit appropriation	753.457	0	0	493.801	(493.801)
Profit for the year 2021	0	0	0	0	753.457
Balance at 31 December 2021	20.700.770	18.500	2.000.000	17.928.813	753.457

Notes to the Equity are included in note 21. The notes are an integral part of the Company’s Financial Statements.

Deutsche Post Finance B.V., Maastricht

2.4 Cash flow statement

For the year ended 31 December 2021

Amounts in EUR	Note	2021	2020
Cash inflow
Repayment of loans	(17)	15.000.000	23.000.000
Interest inflow		19.784.243	20.869.435
Total cash inflow		34.784.243	43.869.435
Cash outflow
New allocation of loans	(17)	0	(23.000.000)
Interest outflow		(18.951.202)	(19.920.125)
Other outflows (SLA, rating fee, etc.)		(120.894)	(132.254)
Total cash outflow		(19.072.096)	(43.052.379)
Net cash flow		15.712.147	817.056
Cash pool balance at 1 January		18.533.787	17.716.731
Cash pool balance at 31 December	(20)	34.245.934	18.533.787

All cash flows are considered to be operating cash flows. Reference is made to note 7. The notes are an integral part of the Company’s Financial Statements.

Deutsche Post Finance B.V., Maastricht

2.5 Notes to the Financial Statements

(1) General overview

Deutsche Post Finance B.V. (hereafter “the Company”), having its statutory seat in Maastricht, was incorporated in the Netherlands, Rotterdam on 13 April 1999 and is now listed in the Commercial Register of the Chamber of Commerce in Maastricht under number 24.29.26.43. The Company is owned 100% by Deutsche Post International B.V. in Maastricht, the Netherlands. The ultimate shareholder is Deutsche Post AG in Bonn, Germany. The Company’s registered office is Pierre de Coubertinweg 7N, 6225 XT Maastricht, the Netherlands.

The principal activity of the Company consists of raising capital in order to lend funds to Deutsche Post DHL Group companies. The Debt Issuance Programme is mentioned in Note 16.

Items included in the Financial Statements are measured using the currency of the primary environment in which Deutsche Post Finance B.V. operates (“the functional currency”). The Financial Statements are presented in Euro, which is the Company’s presentation currency and functional currency.

The Company has no subsidiaries, joint ventures or associates. The Company itself is a part of the Group and the financial results of the Company are incorporated into the IFRS Consolidated Financial Statements of the Group.

The date of approval of these Financial Statements by the Management Board is 6 April 2022.

(2) Going concern

The financial statements have been prepared on a going concern basis. Over the year ending on 31 December 2021 the Company had a profit of EUR 753.457 and a positive net cash flow of EUR 15.712.147. The financial situation of the Company is healthy. Deutsche Post Finance B.V. has a majority of assets in terms of Short-term loans receivable from Deutsche Post DHL Group companies. The Company’s financial position is based on interest inflow and repayments of loans by these companies, which is dependent on the financial position of the counterparties to which the loans are granted. The Company’s management board evaluated the financial position of the counterparties and their ability to repay the principals and interest to the Company. The Company has not identified events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. The directly available cash pool receivables with EUR 34.245.934 as per 31 December 2021 are sufficient to cover the yearly interest outflow for the current year.

Based on the financial position of the Company, the current finance structure and the Company’s ability to realize its assets and discharge its liabilities in the normal course of business, the financial statements have been prepared assuming a going concern. Bond repayments are due in June 2022 and repayment will take place with the collection of the outstanding loan amounts from the Deutsche Post DHL Group companies which also mature in June 2022. The ultimate shareholder of the Company, Deutsche Post AG, also being the guarantor of the bonds issued by the Company, maintains a solid financial position. Cash, cash equivalents and an undrawn syndicated loan facility amounting to EUR 2 billion, provide sufficient headroom to Deutsche Post AG to fulfil any obligations from the guarantee provided to the bondholders.

The financial statements have been prepared on a going concern basis because there were no identifiable risks for the Company that cast doubt upon the Company’s ability to continue as a going concern.

(3) Basis of accounting

The Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and also comply with the financial reporting requirements included in section 9 of Book 2 of the Dutch Civil Code. The Financial Statements have been prepared under the historical cost convention, as modified by the revaluation of all derivative contracts.

The preparation of Financial Statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the Financial Statements, are disclosed in note 5. The Company has decided to apply the principles of hedge accounting in accordance with IAS 39 from January 2018 until further notice.

(4) New developments in international accounting under IFRS

The following Standards, changes to Standards and Interpretations have been applied for the first time in these financial statements:

Required to be applied for financial years beginning on or after	Significance	Benchmark
1 January 2021	No changes	Interest Rate Reform (IBOR Reform) – Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (August 27, 2020)
1 January 2021	Irrelevant	Amendments to IFRS 16: COVID-19 Related Rental Concessions
1 January 2021	Irrelevant	Amendments to IFRS 4 Insurance Contracts

New accounting pronouncements adopted by the EU but only required to be applied in future periods (the Company did not early adopt these).

The following Standards, changes to Standards and Interpretations have already been endorsed by the European Union. However, they will only be required to be applied in the future.

Required to be applied for financial years beginning on or after	Significance
1 January 2022	Irrelevant	Amendments to IFRS 3, reference to the Framework
1 January 2023	Irrelevant	IFRS 17, Insurance Contracts including amendments to IFRS 17
1 January 2022	Irrelevant	Amendments to IAS 16, Revenue before intended use of an item of property, plant and equipment

New accounting pronouncements not yet adopted by the EU.

The IASB and the IFRIC issued further Standards and Interpretations in financial year 2021 and in previous years whose application is not yet mandatory for financial year 2021. The application of these IFRS is dependent on their adoption by the EU.

Required to be applied for financial years beginning on or after	Significance
1 January 2023	Irrelevant	Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative Information (issued on 9 December 2021)
1 January 2023	Irrelevant	Amendments to IAS 12 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Classification of Liabilities as Current or Non-current - Deferral of Effective Date (issued on 23 January 2020 and 15 July 2020 respectively)
1 January 2023	No changes	Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (issued on 12 February 2021)
1 January 2023	Relevant	Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (issued on 12 February 2021)
1 January 2023	Irrelevant	Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets

(5) Critical accounting estimates and judgments

The Company makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year. Estimates and judgments are continuously evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

(a) Impairment losses on loans

Loans issued by the Company are revalued at each balance sheet date. The borrowers’ creditworthiness is monitored on an ongoing basis.Information published by rating agencies on the capital market is used to assess the creditworthiness of debtors and to calculate a potential future loss. A short-cut method is used to determine the expected credit loss on low credit risk intercompany loans: It assumes that the default probability for the intercompany loans is that of the lowest investment grade category. The respective one-year global default rate as published by Standard & Poor’s was 0,16% at the end of 2021 [2020: 0,16%].

(b) Fair value of the derivative
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques (level 2 of the IFRS 13 fair value hierarchy). These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. With regard to the existing interest rate swap with Deutsche Post AG the fair value was calculated with a discounted cash flow method and the applicable market discount rate at the end of 2021 was -0,58% [2020: -0,52%]. Changes in assumptions about these factors could affect reported fair value of financial instruments.

(6) Related party transactions
Deutsche Post Finance B.V. is involved in various related party transactions. For more details we refer to these Financial Statements.

(7) Cash flow statement
The statement of cash flows analyses changes in cash and cash equivalents during a period. According to IAS 7.18 the Company presents its cash flows on the basis of the direct method in the annual financial statements. The direct method presents the specific cash flows associated with items that affect cash flow. Major classes of gross cash receipts and gross cash payments on behalf of Deutsche Post Finance B.V. are disclosed. The cash flows that are presented in this cash flow statement represent the receipts and payments made on behalf of Deutsche Post Finance B.V. resulting from the cash pool agreement between the Company and Deutsche Post AG. They are presented in the cash flow statement even though Deutsche Post Finance B.V. itself has no cash, but a cash pool balance with Deutsche Post AG. The cash pool balances are disclosed under “Cash pool receivables” in the balance sheet (note 20). The principal activity of the Company consists of raising capital in order to lend funds to Deutsche Post DHL Group companies. Therefore all activities, relating to interest received and paid are classified as operating activities. All transactions and balances of the Company within the in-house bank of the Group are classified as changes in working capital (changes in receivables and payables). The Company has not paid any dividends during 2021 (this was also the case last year).

Deutsche Post Finance B.V., Maastricht 18

(8) Foreign currencies
Transactions in currencies other than Euro are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing on the balance sheet date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognized in the income statement except when deferred in equity as qualifying cash flow hedges. At the balance sheet date the Company does not have any foreign currency transactions.

(9) Financial assets
Financial instruments are contractual obligations that give rise to a financial asset of one entity and a financial liability or equity instrument in another entity. These include both primary and derivative financial instruments. Primary financial instruments include in particular all receivables, financial liabilities, securities, loans and accrued interest. Financial assets have been classified into the following measurement categories according to IFRS 9:
* Debt instruments measured at amortized cost,
* Financial assets at fair value through profit or loss (FVTPL)

The classification of debt instruments depends on the Company’s business model for managing financial assets and contractual cash flows. The Company’s management has assessed which business models apply to the held by them financial assets. Based on the defined business model and the contractual cash flow characteristics it has classified its financial instruments into the appropriate IFRS 9 categories. Debt instruments in the Company are generally recognized at amortized cost. Interest income from these financial assets is reported under financial income using the effective interest method. The derivative is classified as “Financial assets at fair value through profit or loss (FVTPL)”.

Category: Debt instruments measured at amortized cost
Financial instruments classified as debt instrument measured at amortized cost, are initially measured at fair value and subsequently measured at amortized cost using the effective interest method. They are non-derivative financial assets with fixed or determinable payments that are assigned to the business model “Hold to collect”. The instruments fulfil the SPPI Test (Solely Payments of Principal and Interest Test). Credit losses calculated using the general approach of IFRS 9 are charged to the income statement. They are considered to have a low credit risk. Debt instruments that are not listed on the capital markets are considered to have a low credit risk if the risk of non-performance is low and the debtor is able at all times (prospective estimate: will be able) to meet its contractual payment obligations in the short term.

Category: Financial assets at fair value through profit or loss
Derivatives have been classified as “Financial assets at fair value through profit or loss”. Initial recognition and subsequent measurement are disclosed under note 13 “Derivative financial instruments and hedge accounting”.

All financial assets are recognized on the balance sheet, when the Company becomes a party to the contract by using trade date accounting. They are included in the current assets except for

Deutsche Post Finance B.V., Maastricht 19

maturities greater than 12 months after the balance sheet date. These are classified as non-current assets.

Impairment
The Company has assessed the expected credit losses related to its debt instruments on a forward-looking basis. The applicable impairment method depends on whether there is a significant increase in credit risk. It is referred to note 5(a). The fair values of the loans have been calculated by applying the discounted cash flow method. It is also referred to note 5(a). Financial assets are derecognized when the rights to receive cash flows from the assets have expired or when the assets have been settled.

(10) Cash pool receivables and payables
The Company participates in the cash pooling of the Group. The cash pool balances at the balance sheet date are shown as cash pool receivables or cash pool payables to related parties (and not shown as cash and cash equivalents). Cash pool receivables are part of the financial instruments and classified as “Debt instruments measured at amortized cost” (note 9). Fair values are considered to approximately match the carrying amounts of short-term receivables.

(11) Financial liabilities
Financial liabilities must be classified in “Financial liabilities at fair value through profit or loss” and in “Other liabilities”. Financial liabilities must be derecognized on the balance sheet, when the Company becomes a party to the contract at fair value on inception. They are included in the current liabilities except for maturities greater than 12 months after the balance sheet date. These are classified as non-current liabilities. Derivative financial liabilities are classified as “Financial liabilities at fair value through profit or loss”. Initial recognition and subsequent measurement are disclosed under note 13 “Derivative financial instruments and hedge accounting”. The remaining liabilities are classified as “Other liabilities”. They are subsequently carried at amortized cost by applying the effective interest method. The fair value of the bond is derived from the published market price. Financial liabilities under fair value hedge accounting are including an adjustment for the fair value of the risk being hedged. Financial liabilities are derecognized when the obligation to settle the liabilities has expired or has been settled.

(12) Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to

Deutsche Post Finance B.V., Maastricht 20

settle on a net basis or realize the asset and settle the liability simultaneously. Currently, there are no assets or liabilities which are offset.

(13) Derivative financial instruments and hedge accounting
All derivative financial instruments are recognized at fair value on the date a derivative contract is entered into and subsequently re-measured at fair value. The method of recognising the resulting gain or loss depends on whether the instrument is designated as a hedging instrument. To avoid variations in the net profit resulting from changes in the fair value of derivative financial instruments, hedge accounting is applied where possible. This concerns the interest swap. If hedge accounting is applied, the net profit or loss from both the derivative and the related hedged item are simultaneously recognized in income. Depending on the hedged item and the risk to be hedged, the Company uses fair value hedge accounting or cash flow hedge accounting.# (14) Interest income and expense

According to the IFRS 9 (general approach) the interest income and expense for financial assets in stage 1 and stage 2 are calculated on the gross carrying amount. For financial assets in stage 3, the Company will continue to recognize lifetime Expected Credit Loss (ECL), as in stage 2, but they will now recognize interest income on a net basis. This means that interest income will be calculated based on the gross carrying amount of the financial asset less ECL.

Deutsche Post Finance B.V., Maastricht 21

(15) Principles for the determination of the result

Interest income and interest expense are accounted for during the period to which these belong. For interest expenses, the Company takes the transaction fees, if applicable, into account. The Company is part of the fiscal unity formed with Deutsche Post International B.V. and its affiliated companies in the Netherlands. Current and deferred income tax assets and liabilities of the Company have been included and recognized in the accounts of Deutsche Post International B.V. as head of the fiscal unity.

(16) Financial risk management

The principal activity of the Company consists of raising debt capital through bond issuances in order to lend those funds to Deutsche Post DHL Group companies. The capital managed by the Company is defined as the nominal amount of outstanding bonds issued by the Company, i.e. currently EUR 500 million. It is fixed until the existing bond needs to be redeemed or new bonds are being issued. In view of the Group’s long-term capital requirements, the Group established a Debt Issuance Programme with a volume of up to EUR 8 billion. The Company is a possible issuer under the programme which offers the Company the possibility to issue bonds in customized tranches up to a stipulated total amount and enables it to react flexibly to changing market conditions. Deutsche Post AG together with the Company updated the programme in the first half of 2021. The activities of the Company result in financial risks that may arise from changes in exchange rates and interest rates. Both risks are hedged according to the Group’s guidelines by the Group’s Central Treasury. Internal guidelines govern the universe of actions, responsibilities and controls necessary for using derivatives. The Group uses suitable risk management software to record, assess and process hedging transactions. It is also used to regularly assess the effectiveness of the hedging relationships. The Group only enters into hedging transactions with prime-rated banks. Each bank is assigned a counterparty limit, the use of which is regularly monitored. The Group’s Board of Management receives regular internal information on the existing financial risks and the hedging instruments deployed to limit them. The fair values of the derivatives used by the Company may be subject to substantial fluctuations depending on changes in exchange rates and interest rates. These fluctuations in fair value are not to be viewed in isolation from the underlying transactions that are hedged. Derivatives and hedged transactions form a unity with regard to their offsetting value development.

Interest rate risk and interest rate management

Interest rate risk arises from changes in market interest rates for financial assets and financial liabilities. To quantify the risk profile, according to the Group’s guidelines, all interest-bearing receivables and liabilities are recorded, interest rate analyses are regularly prepared, and the potential effects on the net interest income are examined. The Group uses interest rate derivatives, such as interest rate swaps, to reduce financing costs and optimally manage and limit interest rate risks by adjusting the ratio of fixed to variable interest agreements. At 31 December 2021 a fixed rate bond with a total notional volume of EUR 500.000.000 was outstanding, maturing in 2022.

Deutsche Post Finance B.V., Maastricht 22

The bond maturing in 2022 has been transformed into a floating rate liability with a fixed to float receiver interest rate swap. For this interest rate swap fair value hedge accounting is applied. The EUR 500.000.000 have been used to finance floating rate EUR loans to Deutsche Post DHL Group companies maturing in 2022. IFRS 7 requires a company to disclose a sensitivity analysis, showing how profit and loss and equity are affected by hypothetical changes in interest rates at the reporting date. For the sensitivity analysis concerning the impact on profit and loss all primary variable rate financial instruments and the floating rate leg of the interest rate swap has been taken into consideration. If the market interest rates as at 31 December 2021 would have been 100 basis points higher, the net financial income would have increased by EUR 131.887 [2020: EUR 18.113]. A 100 basis points decrease leads to the opposite effect (net financial income decreases by EUR 131.887). The Company did not have any outstanding cash flow hedging transactions on its balance sheet at the end of 2021and at the end of 2020, therefore it was not necessary to calculate the equity impact of a hypothetical change in interest rates.

Foreign exchange risk

The Company did not have any foreign currency transactions in its balance sheet at the end of 2021 and at the end of 2020.

Liquidity risk

The Group ensures a sufficient supply of cash for Group companies at all times via a largely centralized liquidity management system. The Company is one of the most important financing entities within the Group. Therefore the Company issued bonds which are fully guaranteed by Deutsche Post AG. The following picture shows the maturity structure of primary financial liabilities:

Maturity structure – undiscounted cash flows non-derivative financial instruments
31-12-2021
EUR (million) | less than 1 year | 1 to 2 years | 2 to 3 years | 3 to 4 years | 4 to 5 years | more than 5 years
---|---|---|---|---|---|---
Bonds * | (515) | 0 | 0 | 0 | 0 | 0
Loans payable | 0 | 0 | 0 | 0 | 0 | 0
(515) | 0 | 0 | 0 | 0 | 0
* interests are included

Deutsche Post Finance B.V., Maastricht 23

31-12-2020
EUR (million) | less than 1 year | 1 to 2 years | 2 to 3 years | 3 to 4 years | 4 to 5 years | more than 5 years
---|---|---|---|---|---|---
Bonds * | (15) | (515) | 0 | 0 | 0 | 0
Loans payable | 0 | 0 | 0 | 0 | 0 | 0
(15) | (515) | 0 | 0 | 0 | 0
* interests are included

Derivative financial instruments entail both rights and obligations. The contractual agreement defines whether these rights and obligations can be offset against each other, thus leading to a net settlement, or whether both parties to the contract will have to fully fulfil their obligations (gross settlement). The maturity structure of payments under derivative financial instruments is as follows:

Maturity structure – undiscounted cash flows derivative financial instruments
31-12-2021
EUR (million) | less than 1 year | 1 to 2 years | 2 to 3 years | 3 to 4 years | 4 to 5 years | more than 5 years
---|---|---|---|---|---|---
Derivative assets | | | | | |
Cash inflows | 15 | 0 | 0 | 0 | 0 | 0
Cash outflows | (2) | 0 | 0 | 0 | 0 | 0
Derivative liabilities | | | | | |
Cash inflows | 0 | 0 | 0 | 0 | 0 | 0
Cash outflows | 0 | 0 | 0 | 0 | 0 | 0

Deutsche Post Finance B.V., Maastricht 24

31-12-2020
EUR (million) | less than 1 year | 1 to 2 years | 2 to 3 years | 3 to 4 years | 4 to 5 years | more than 5 years
---|---|---|---|---|---|---
Derivative assets | | | | | |
Cash inflows | 15 | 15 | 0 | 0 | 0 | 0
Cash outflows | (4) | (2) | 0 | 0 | 0 | 0
Derivative liabilities | | | | | |
Cash inflows | 0 | 0 | 0 | 0 | 0 | 0
Cash outflows | 0 | 0 | 0 | 0 | 0 | 0

Credit risk

In accordance with the impairment model of IFRS 9 “Expected Credit Loss”, financial assets must generally be assessed for an expected credit loss. Expected credit loss (ECL) as defined by IFRS 9 is the probability-weighted estimate of credit losses over the expected life of a financial instrument. Default is the difference between the cash flows due to the Company under the contract and the cash flows expected by the Company. As the expected credit losses take into account the amount and timing of the payments, a credit loss arises even if the Company expects that it will be paid in full but later than the contractual due date.The ECL is measured at the individual position level, in exceptional cases at the collective portfolio level (grouped exposures based on common credit risk characteristics). IFRS 9 provides a three-stage model, the “general approach”, to determine the credit loss. According to the three-stage model, debt instruments measured at amortized cost are allocated to stage 1 at initial recognition. The expected loss corresponds to the value that can arise from possible default events within the next twelve months (12- month expected loss) after the balance sheet date. If there has been a significant increase in the counterparty credit risk since initial recognition, the financial asset is transferred from stage 1 to stage 2. Among other things, the default risk is significantly increased if the debtor no longer meets its payment obligations in the short term or if an actual or expected deterioration in the debtor’s business results becomes apparent. The default risk is then measured on the basis of the probability of default (PD) over the entire remaining term (lifetime PD). The impairment corresponds to the value that can arise from possible default events during the remaining term of the financial asset. A transfer from stage 1 to stage 2 must take place at the latest when the contractual payments are more than 30 days overdue. If there is objective evidence that a financial asset is impaired. It must be transferred to stage 3. Which is the case if the payments are more than 90 days past due, it is assumed that the debtor is experiencing significant financial difficulties and that there is objective evidence of a loan default. In general, the Company only grants intra Group loans. The Company has made assessments of the credit risk of its counterparties on January 1, 2021 and December 31, 2021. Based on these assessments all borrowers have the strong capacity to meet their contractual cash flow obligations in the near term. Therefore all loans were classified as low credit risk loans and the credit loss allowance was limited to the ECL within twelve months after the balance sheet date (stage 1). Furthermore, the management has decided to use a short-cut to calculate the actual ECL, which assumes that the one-year default probability for the loans is that of the lowest investment grade Deutsche Post Finance B.V., Maastricht 25 category BBB as published by Standard & Poor’s and that no amount would be recovered in the event of a default. The respective calculations resulted in amounts, which were considered to be immaterial by the management, in total EUR 391.345 [2020: EUR 802.937] as shown under note 17. The ECL decrease compared to 2020 was mainly driven by a reduction of the risk horizon from 12 to 6 months as all loans are expected to be repaid in June 2022. The cash pool balance receivable measured at amortized cost is subject to the credit risk of the head of the cash pool, which is Deutsche Post AG. The management assesses the default risk as low. Due to the materiality of the risk, no risk provisions were made. In the financial year, the cash flows of the debt instruments were neither modified nor model changes made to derive risk parameters. As a result, the input parameters were not revalued. Loans and receivables measured at amortized cost were recognized at stage 1 at the balance sheet date. At the balance sheet date, there were no indications of significant deterioration of creditworthiness. During the year there was no reclassification within the stages. All derivative assets are concluded with Deutsche Post AG.

(17) Loans receivable from affiliates

All 2021 amounts are presented as part of the current assets on the balance sheet. All comparable 2020 amounts are presented as part of the non-current assets on the balance sheet. Movements during the financial year were as follows:

	2021	2020
EUR	EUR	EUR
Opening balance at 1 January	501.008.353	500.958.161
New loans	0	23.000.000
Redemptions	(15.000.000)	(23.000.000)
Release of the ECL provision	411.592	50.192
(adjustment at 31 December)
Balance at 31 December	486.419.945	501.008.353

Loans receivable at year end amounted to the following balances:

	31-12-2021	31-12-2020
EUR	EUR	EUR
Deutsche Post DHL Group related parties	486.811.290	501.811.290
IFRS 9 expected credit loss	(391.345)	(802.937)
	486.419.945	501.008.353

Deutsche Post Finance B.V., Maastricht 26

The maturity of the loans receivable is as follows:

	31-12-2021	31-12-2020
EUR	EUR	EUR
2 022	486.419.945	501.008.353

None of the loans receivable have matured or are past due. None of the loans receivable are impaired.

The nominal interest rates at the balance sheet date were as follows:

	31-12-2021	31-12-2020
EUR	0 , 9 7 %	0,98 %

The carrying amounts without expected credit loss and fair value of the loans receivable at year end were:

	Carrying amounts	Fair values
	31-12-2021	31-12-2020
EUR	EUR	EUR
	486.811.290	501.811.290

The fair values are based on contractual cash flows discounted using a rate based on the applicable market rate at the end of 2021 of -0,58% [2020: -0,52%].

The carrying amounts without expected credit loss of the Company’s loans receivable at year end were denominated in the following currencies:

	31-12-2021	31-12-2020
EUR	EUR	EUR
	486.811.290	501.811.290

Deutsche Post Finance B.V., Maastricht 27

The Company has the following fixed rate/floating rate loans (notional amounts):

	31-12-2021	31-12-2020
EUR	EUR	EUR
Floating rate loans	486.811.290	501.811.290

(18) Derivatives

All 2021 amounts are presented as part of the current assets on the balance sheet. All comparable 2020 amounts are presented as part of the non-current assets on the balance sheet.

The following table shows the fair value of the derivative applied by the Company:

	31-12-2021	31-12-2020
EUR	EUR	EUR
Interest rate swap (positive value)	13.057.253	24.198.609

The fair value of the interest rate hedging instrument was calculated on the basis of discounted expected future cash flows, using a discounted cash flow model using observable market input.

	31-12-2021	31-12-2020
EUR	EUR	EUR
Interest rate swap (notional amount)	500.000.000	500.000.000

Fair value hedge

An interest rate swap with a volume of EUR 500.000.000 was concluded in 2012 to hedge the fair value risk of the nominal amount of the fixed interest Euro-denominated bond maturing on 27 June 2022. The hedge ratio was 100% and the bond coupon of 2,95% was swapped into an average floating rate of 0,71% for 2021 [2020: 0,92%]. The positive fair value of this fixed to floating interest rate swap amounts to EUR 13.057.253 [2020: EUR 24.198.609].

(19) Short-term receivables from affiliates

Short-term receivables represent interest receivables.

	31-12-2021	31-12-2020
EUR	EUR	EUR
Interest receivable from Deutsche Post DHL Group companies	65.111	41.023

Deutsche Post Finance B.V., Maastricht 28

(20) Cash pool receivables

Cash pool receivables represent cash pool balances of Deutsche Post Finance B.V. and are related to the cash pool agreement between the Company and Deutsche Post AG.

	31-12-2021	31-12-2020
EUR	EUR	EUR
Cash pool receivables	34.245.934	18.533.787

(21) Equity

Share capital

The authorized share capital of the Company as at 31 December 2021 amounts to EUR 90.000 and consists of 180 ordinary shares each of EUR 500. The issued share capital amounts to EUR 18.500 and consists of 37 ordinary shares with a nominal value of EUR 500 each, which is fully paid.

Capital reserve

On 23 May 2002 the shareholder paid a capital contribution amounting to EUR 2.925.697. On the same date the shareholder approved offsetting the negative retained earnings as at 31 December 2001, amounting to EUR 925.697, against the capital reserve.

(22) Bond

On 25 June, 2012 the Company issued a EUR 500.000.000, 2,95% bond of 2012/2022 with an issue price of 99,471% (Bond 2022). Bond 2022 is listed at the Luxembourg Stock Exchange. All 2021 amounts are presented as part of the current liabilities on the balance sheet. All comparable 2020 amounts are presented as part of the non-current liabilities on the balance sheet. The bond issued by the Company is fully guaranteed by Deutsche Post AG.

The below two tables show nominal amounts.

Bond

	31 - 12 - 20 2 1	31 - 12 - 20 20
EUR	EUR	EUR
Bond 2022	500.000.000	500.000.000

	31 - 12 - 20 2 1	31 - 12 - 20 20
EUR	EUR	EUR
The maturity of the bond as reported at year end is:
1 – 5 years, nominal value	0	500.000.000
< 1 year, nominal value	500.000.000	0

Deutsche Post Finance B.V., Maastricht 29

The carrying amount of the amortized costs of the bond (before the fair value adjustments relating to hedging) is as follows:

Bond

	31-12-2021	31-12-2020
EUR	EUR	EUR
Bond 2022	499.733.778	499.213.569

The carrying amount of the bond (after fair value adjustment relating to hedging) is as follows:

Bond

	31-12-2021	31-12-2020
EUR	EUR	EUR
Bond 2022	505.350.430	516.002.732

The fair value of the bond is as follows:

	31 - 12 - 20 2 1	31 - 12 - 20 20
EUR	EUR	EUR
Bond 2022	508.245.000	524.610.000

The effective interest rates, taking into account the effect of the interest rate swap is as follows:

Bond

	31-12-2021	31-12-2020
Bond 2022	0,7960 %	0,8141 %

Deutsche Post Finance B.V., Maastricht 30

(23) Accrued interest

	31-12-2021	31-12-2020
EUR	EUR	EUR
Accrued interest payable to bondholders	7.597.260	7.556.850
Accrued charges for guarantee provision	125.000	256.164
	7.722.260	7.813.014

The guarantee provision relates to the guarantee issued by Deutsche Post AG (guarantor) in favour of the investors in the 2012/2022 bond issued by the Company (warrantee).

(24) Other current liabilities and accruals

The breakdown of accruals and deferred income is as follows:

	31-12-2021	31-12-2020
EUR	EUR	EUR
Other accruals	14.783	18.713

All balances stated above fall due within 1 year.

(25) Interest income

The interest income arises from settled and unsettled balances with related parties, which the Company shows as receivables.# Interest income on loans to Deutsche Post DHL Group companies in Europe

	2021	2020
Interest income on loans to Deutsche Post DHL Group companies in Europe	5,058,366	6,095,724
	5,058,366	6,095,724

Deutsche Post Finance B.V., Maastricht 31

Interest expenses

Interest expenses due on bonds can be specified as follows:

	2021	2020
Interest expenses (fixed) Bond 2022	(14,790,410)	(14,770,647)
Interest income from interest rate swaps related to Bond 2022	11,200,439	10,120,258
Amortization of the bond discount and issue costs and release of upfront compensation payment (deferred income)	(520,209)	(504,754)
Guarantee fees	(498,288)	(500,700)
Interest expense from affiliated companies	(4,608,503)	(5,655,843)
	(27)

Other gains and losses

	2021	2020
Losses from fair valuation of interest rate swaps	(11,172,510)	(8,273,888)
Gains from hedge ineffectiveness	8,966	135,481
Credit result IFRS 9	411,592	50,192
Gains from valuation of bonds (interest related)	11,172,510	8,273,888
	420,558	185,673
	(28)

Other operating expenses

	2021	2020
Legal, consulting and audit fees	(65,237)	(72,992)
Other administrative expenses	(51,727)	(58,761)
	(116,964)	(131,753)

For the independent auditor’s fees refer to note 34.

Income tax expense

The Company is part of the fiscal unity formed with Deutsche Post International B.V. and its affiliated companies in the Netherlands. Current and deferred income tax assets and liabilities of the Company have been included and recognized in the accounts of Deutsche Post International B.V. as head of the fiscal unity. Reference is made to note 33.

Deutsche Post Finance B.V., Maastricht 32

Additional disclosure on the financial instruments

Deutsche Post Finance B.V. classifies financial instruments in relation to the respective balance sheet accounts. The following table reconciles the balance sheet accounts to the categories used by the Company.

Reconciliation of carrying amounts in the balance sheet as at 31 December 2021

	31-12-2021 EUR	Carrying amount	Debt instruments measured at amortized cost	Financial assets at fair value through profit or loss
Assets
Non-current assets	0	0	0	0
Long-term loans receivable		At amortized cost	0	0
Non-current derivatives positive FV		At fair value	0	0
Current assets	533,788,243	520,730,990	13,057,253
Short-term loans receivable		At amortized cost	486,419,945	486,419,945
Short-term receivables from affiliated companies		At amortized cost	65,111	65,111
Current derivatives		At fair value	13,057,253	0
Cash pool receivables		At amortized cost	34,245,934	34,245,934
Total assets	533,788,243	520,730,990	13,057,253

Deutsche Post Finance B.V., Maastricht 33

	31-12-2021 EUR	Carrying amount	Other liabilities at amortized cost
Liabilities
Long-term liabilities	0	0	0
Bonds long-term		At amortized cost	0
Non-current derivatives negative FV		At fair value	0
Short-term liabilities	(513,087,473)	(513,087,473)
Bonds short-term		At amortized cost	(505,350,430)
Accrued interest		At amortized cost	(7,722,260)
Other current liabilities and accruals		At amortized cost	(14,783)
Total liabilities	(513,087,473)	(513,087,473)

Deutsche Post Finance B.V., Maastricht 34

Reconciliation of carrying amounts in the balance sheet as at 31 December 2020

	31-12-2020 EUR	Carrying amount	Debt instruments measured at amortized cost	Financial assets at fair value through profit or loss
Assets
Non-current assets	525,206,962	501,008,353	24,198,609
Long-term loans receivable		At amortized cost	501,008,353	501,008,353
Non-current derivatives positive FV		At fair value	24,198,609	0
Current assets	18,574,810	18,574,810	0
Short-term loans receivable		At amortized cost	0	0
Short-term receivables from affiliated companies		At amortized cost	41,023	41,023
Cash pool receivables		At amortized cost	18,533,787	18,533,787
Total assets	543,781,772	519,583,163	24,198,609

Deutsche Post Finance B.V., Maastricht 35

	31-12-2020 EUR	Carrying amount	Other liabilities
Liabilities
Long-term liabilities	(516,002,732)	(516,002,732)
Bonds long-term		At amortized cost	(516,002,732)
Non-current derivatives negative FV		At fair value	0
Short-term liabilities	(7,831,727)	(7,831,727)
Bonds short-term		At amortized cost	0
Accrued interest		At amortized cost	(7,813,014)
Other current liabilities and accruals		At amortized cost	(18,713)
Total liabilities	(523,834,459)	(523,834,459)

If there is an active market for a financial instrument (e.g., stock exchange), the fair value is determined by reference to the market or quoted exchange price at the balance sheet date. If no fair value is available in an active market, the quoted prices in an active market for similar instruments or recognized valuation techniques are used to determine the fair value. The valuation techniques used incorporate the key factors determining the fair value of the financial instruments using validation parameters that are derived from the market conditions as at the balance sheet date. Counterparty risk is analyzed on the basis of the current credit default swaps signed by the counterparties. The following table presents the classes of financial instruments recognized at fair value and those financial instruments whose fair value is required to be disclosed; the financial instruments are presented by level in the fair value hierarchy to which they are assigned. The simplification option under IFRS 7.29a was exercised for short-term receivables from affiliated companies, cash pool receivables, other receivables, short-term loans payable, accrued interest and other current liabilities and accruals with predominantly short maturities. Their carrying amounts as at the reporting date are approximately equivalent to their fair values.

Deutsche Post Finance B.V., Maastricht 36

Financial assets and liabilities: 31-12-2021

The financial assets and financial liabilities disclosed under this note are carried at amortized cost and the derivatives at fair value. The fair values of the financial assets were determined using the discounted cash flow method. Financial liabilities (debt instruments) are listed on the capital market.

	Level 1	Level 2	Level 3	Total
Assets
Current assets	0	13,057,253	0	13,057,253
Total assets	0	13,057,253	0	13,057,253

	Level 1	Level 2	Level 3	Total
Liabilities
Short-term liabilities	(508,245,000)	0	0	(508,245,000)
Total liabilities	(508,245,000)	0	0	(508,245,000)

Level 1: quoted market prices
Level 2: measurement using key inputs based on observable market data
Level 3: measurement using key inputs not based on observable market data

Deutsche Post Finance B.V., Maastricht 37

Financial assets and liabilities: 31-12-2020

	Level 1	Level 2	Level 3	Total
Assets
Non-current assets	0	536,680,917	0	536,680,917
Total assets	0	536,680,917	0	536,680,917

	Level 1	Level 2	Level 3	Total
Liabilities
Long-term liabilities	(524,610,000)	0	0	(524,610,000)
Total liabilities	(524,610,000)	0	0	(524,610,000)

Level 1: quoted market prices
Level 2: measurement using key inputs based on observable market data
Level 3: measurement using key inputs not based on observable market data

Level 2 includes interest rate and currency derivatives. The fair values of these derivatives are measured on the basis of discounted expected future cash flows, taking into account forward rates for currencies and interest rates. For this purpose, price quotations observable on the market are imported from information platforms customary in the market into the treasury management system. The price quotations reflect actual transactions involving similar instruments on an active market. No financial instruments were transferred between levels in financial year 2021 and the previous year. Financial assets and liabilities are set off on the basis of netting agreements (master netting agreements) only if an enforceable right of set-off exists and settlement on a net basis is intended as at the reporting date. If the right of set-off is not enforceable in a normal course of business and the master netting arrangements creates a conditional right of set-off that can only be enforced by taking legal action, the financial assets and liabilities must be recognized in the balance sheet at their gross amounts as at the reporting date. At the balance sheet date the Company did not net any financial assets and liabilities. To hedge fair value risks, the Company enters into financial derivative transactions with Deutsche Post AG. There are no netting agreements for these contracts. Therefore all derivatives are recognized at their gross amount in the Financial Statements.

Deutsche Post Finance B.V., Maastricht 38

Employees

The Company has no employees. Employees of the Deutsche Post International B.V. in Maastricht and the Treasury Center in Bonn perform the administrative activities.

Directors’ remuneration

The Management Board of the Company currently consists of two members:
* Mr. Roland W. Buss
* Mr. Timo L.F. van Druten.

The members of the Management Board do not receive any remuneration from the Company.

Commitments and rights not included in the balance sheet

The Company is part of the fiscal unity headed by Deutsche Post International B.V. As a consequence, the Company is liable for all corporate income tax liabilities of the fiscal unity. The tax position of the Company is accounted for and included in the consolidated tax position of the head of the fiscal unity, Deutsche Post International B.V. In line with Group policy the income tax expenses are not being charged to the Company, but remain with the head of the fiscal unity.

Independent auditor’s fees

The following fees for services rendered by the independent auditor of the Company’s Financial Statements, PricewaterhouseCoopers Accountants N.V.# Independent Auditor's Report

Financial Statements 31 December 2021

1 January 2021

Deutsche Post Finance B.V.
Controle Goedkeurend
NLE00002541.1.1
KVK
Kvk Nummer uit D B (nog te doen)
Create SBR Extension 1.0

To: the general meeting of Deutsche Post Finance B.V.

Report on the financial statements 2021

Our opinion

In our opinion, the financial statements of Deutsche Post Finance B.V. (‘the Company’) give a true and fair view of the financial position of the Company as at 31 December 2021, and of its result and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union (‘EU-IFRS’) and with Part 9 of Book 2 of the Dutch Civil Code.

What we have audited

We have audited the accompanying financial statements 2021 of Deutsche Post Finance B.V., Maastricht. The financial statements comprise:

the balance sheet as at 31 December 2021;
the following statements for 2021: the statement of comprehensive income, statement of changes in equity and the cash flow statement; and
the notes, comprising the significant accounting policies and other explanatory information.

The financial reporting framework applied in the preparation of the financial statements is EU-IFRS and the relevant provisions of Part 9 of Book 2 of the Dutch Civil Code.

The basis for our opinion

We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. We have further described our responsibilities under those standards in the section ‘Our responsibilities for the audit of the financial statements’ of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of Deutsche Post Finance B.V. in accordance with the European Union Regulation on specific requirements regarding statutory audit of public-interest entities, the ‘Wet toezicht accountantsorganisaties’ (Wta, Audit firms supervision act), the ‘Verordening inzake de onafhankelijkheid van accountants bij assuranceopdrachten’ (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore, we have complied with the ‘Verordening gedrags- en beroepsregels accountants’ (VGBA, Dutch Code of Ethics).

Our audit approach

We designed our audit procedures with respect to the key audit matters, fraud and going concern, and the matters resulting from that, in the context of our audit of the financial statements as a whole and in forming our opinion thereon. The information in support of our opinion, like our findings and observations related to individual key audit matters, the audit approach, fraud risk and the audit approach going concern was addressed in this context, and we do not provide a separate opinion or conclusion on these matters.

Overview and context

Deutsche Post Finance B.V.’s main activity is the financing of group companies, through bond offerings on the international capital markets. The repayment of the bonds to the investors is guaranteed by Deutsche Post AG, the ultimate shareholder of the Company, as disclosed in note 22 to the financial statements. The Company has financial instruments in place to mitigate interest rate risk. We paid specific attention to the areas of focus driven by the operations of the Company, as set out below.

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where the management board made important judgements, for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. In note 5 of the financial statements, the Company describes the areas of judgement in applying accounting policies and the key sources of estimation uncertainty. Given the significant estimation uncertainty and the related higher inherent risks of material misstatement in the valuation and existence of the loans issued to the group companies and derivative valuation, we considered these matters as key audit matters as set out in the section ‘Key audit matters’ of this report. Furthermore, we identified hedge accounting as key audit matter because of the detailed formal and technical requirements that are relevant to the application of hedge accounting and because inappropriate application of these requirements can lead to a material effect on the financial statements. As in all of our audits, we also addressed the risk of management override of internal controls, including evaluating whether there was evidence of bias by the management board that may represent a risk of material misstatement due to fraud.

The Company assessed the possible effects of climate change on its financial position. We discussed their assessment and governance thereof with the management board and evaluated the potential impact on the financial position including underlying assumptions and estimates. The impact of climate change is not considered a key audit matter.

Deutsche Post Finance B.V. - ZWEN3TFVEKTP-714785583-14 Page 2 of 12

We ensured that the audit team included the appropriate skills and competences which are needed for the audit of a finance company. We therefore included specialists in the areas of valuation and accounting in our team.

Materiality

The scope of our audit was influenced by the application of materiality, which is further explained in the section ‘Our responsibilities for the audit of the financial statements’. Based on our professional judgement we determined certain quantitative thresholds for materiality, including the overall materiality for the financial statements as a whole as set out below. These, together with qualitative considerations, helped us to determine the nature, timing and extent of our audit procedures on the individual financial statement line items and disclosures and to evaluate the effect of identified misstatements, both individually and in aggregate, on the financial statements as a whole and on our opinion.

Based on our professional judgement, we determined the materiality for the financial statements as a whole at €5,000,000 (2020: €5,000,000). As a basis for our judgement, we used 1% of total assets. We used total assets as the primary benchmark, a generally accepted auditing practice, based on our analysis of the common information needs of the stakeholders. On this basis, we believe that total assets is an important metric for the financial performance of the Company. Inherent to the nature of the Company’s business, the amounts in the statement of financial position are large in proportion to the income statement line items other gains and losses, operating expenses and income tax expense. Based on qualitative considerations we performed audit procedures on those income statement line items, applying a benchmark of 10% of the total of those expenses. We also take misstatements and/or possible misstatements into account that, in our judgement, are material for qualitative reasons.

Deutsche Post Finance B.V. - ZWEN3TFVEKTP-714785583-14 Page 3 of 12

The services provided by PricewaterhouseCoopers Accountants N.V. were relating to the financial year 2021:

	2021	2020
EUR	EUR	EUR
Audit of the Financial Statements	46.792	46.101
Other audit services	17.885	17.365
Tax services	0	0
Non-Audit services	0	0
	64.677	63.466

The other audit services relate to the services provided by PricewaterhouseCoopers Accountants N.V. for the update of the prospectus in May 2021.

Deutsche Post Finance B.V., Maastricht 39 (35)

Post balance sheet events

No post balance sheet events have occurred.

Signatures:

Maastricht, 6 April 2022

The Management Board:

.................................. ..................................
Roland W. Buss Timo L.F. van Druten

Deutsche Post Finance B.V., Maastricht 40

3. Other information

In respect of the appropriation of the net income, the following is stipulated in § 14 of the articles of association:

In the general meeting the shareholder shall decide, whether the profit achieved during the fiscal year will be completely or partly distributed, or whether it shall be transferred to the reserves.

Distributions can only be made if the equity exceeds the paid-in and called-up part of the capital plus legal reserves.
Dividends are distributed within one month after adoption of the annual Financial Statements. The general meeting can decide that the dividend is completely or partly distributed in another form than cash.
Either the general meeting or the management can – by taking into consideration the stipulations of § 2 – effect distributions from the profit and/or the reserves.

ZWEN3TFVEKTP-714785583-14

PricewaterhouseCoopers Accountants N.V., Boschdijktunnel 10, 5611 AG Eindhoven, P.O. Box 6365, 5600 HJ Eindhoven, the Netherlands T: +31 (0) 88 792 00 40, F: +31 (0) 88 792 94 13, www.pwc.nl

‘PwC’ is the brand under which PricewaterhouseCoopers Accountants N.V. (Chamber of Commerce 34180285), PricewaterhouseCoopers Belastingadviseurs N.V. (Chamber of Commerce 34180284), PricewaterhouseCoopers Advisory N.V. (Chamber of Commerce 34180287), PricewaterhouseCoopers Compliance Services B.V. (Chamber of Commerce 51414406), PricewaterhouseCoopers Pensions, Actuarial & Insurance Services B.V. (Chamber of Commerce 54226368), PricewaterhouseCoopers B.V. (Chamber of Commerce 34180289) and other companies operate and provide services. These services are governed by General Terms and Conditions (‘algemene voorwaarden’), which include provisions regarding our liability. Purchases by these companies are governed by General Terms and Conditions of Purchase (‘algemene inkoopvoorwaarden’). At www.pwc.nl more detailed information on these companies is available, including these General Terms and Conditions and the General Terms and Conditions of Purchase, which have also been filed at the Amsterdam Chamber of Commerce.We agreed with the management board that we would report to them any misstatement identified during our audit above €250,000 (2020: €250,000) as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.

Audit approach fraud risks

We identified and assessed the risks of material misstatements of the financial statements due to fraud. During our audit we obtained an understanding of the entity and its environment and the components of the internal control system. This included the management board’s risk assessment process and the management board’s process for responding to the risks of fraud and monitoring the system of internal controls, as well as the outcomes. We evaluated the design and relevant aspects of the internal control system and in particular the fraud risk assessment, as well as the code of conduct and anti-corruption policy, among other things. We evaluated the design and the implementation and, where considered appropriate, tested the operating effectiveness of internal controls designed to mitigate fraud risks. We asked members of the management board whether they are aware of any actual or suspected fraud. This did not result in signals of actual or suspected fraud that may lead to a material misstatement.

Deutsche Post Finance B.V. - ZWEN3TFVEKTP-714785583-14 Page 4 of 12

As part of our process of identifying fraud risks, we evaluated fraud risk factors with respect to financial reporting on fraud, misappropriation of assets and bribery and corruption. We evaluated whether these factors indicated that a risk of material misstatement due to fraud was present. We identified the following fraud risk and performed the following specific procedures:

Identified fraud risk

The risk of management override of controls

Management is in a unique position to perpetrate fraud because of management’s ability to manipulate accounting records and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively. That is why, in all our audits, we pay attention to the risk of management override of controls in:

The appropriateness of journal entries and other adjustments made in the preparation of the financial statements.
Estimates.
Significant transactions, if any, outside the normal course of business for the entity.

We pay particular attention to tendencies due to possible interests of management. We evaluated the design and implementation of the internal control system in the processes of generating and processing journal entries, making estimates, and monitoring projects. We also paid specific attention to the access safeguards in the IT system and the possibility that these lead to violations of the segregation of duties. We performed our audit procedures primarily substantive based. We selected journal entries based on risk criteria and conducted specific audit activities for these entries. These procedures include, amongst others, inspection of the entries to source documentation. We did not identify any significant transactions outside the normal course of business. We also performed specific audit procedures related to important estimates of management, including the valuation of the loans to group companies. We refer to the key audit matters. We specifically paid attention to the inherent risk of bias of management in estimates. Our audit procedures did not lead to specific indications of fraud or suspicions of fraud with respect to management override of violations of the internal controls. We incorporated an element of unpredictability in our audit. We reviewed lawyer’s letters and correspondence with regulators. During the audit we remained alert to indications of fraud. We also considered the outcome of our other audit procedures and evaluated whether any findings were indicative of fraud or non-compliance of laws and regulations. Whenever we identified any indications of fraud, we re-evaluated our fraud risk assessment and its impact on our audit procedures.

Deutsche Post Finance B.V. - ZWEN3TFVEKTP-714785583-14 Page 5 of 12

Audit approach Going Concern

As disclosed in section ‘Going concern’ in note 2.5.2 of the financial statements, the management board performed their assessment of the entity’s ability to continue as a going concern for at least twelve months as from the date of preparation of the financial statements and has not identified events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern (hereafter: going concern risks). Our procedures to evaluate the management board going concern assessment include, amongst others:

Considering whether the management board’s going concern assessment includes all relevant information of which we are aware as a result of our audit by inquire with the management board regarding the management board’s most important assumptions underlying their going concern assessment. Amongst others, management took into consideration the financial position of the counterparties and their ability to repay the principals and interest to the Company and that Deutsche Post AG, the ultimate shareholder of the Company, being the guarantor of the bonds issued by the Company, maintains a solid financial position.
Evaluating management’s current budget including cash flows for at least 12 months from the date of preparation of the financial statements taken into account all relevant information of which we are aware as a result of our audit.
Analyzing the financial position per balance sheet date in relation to the financial position per prior year balance sheet date to assess whether events or circumstances exist that may lead to a going concern risk.
We evaluated the financial position of the Company, the counterparties of loans to group companies (including the financial position of the guarantor to the bonds issued on capital markets) and their ability to repay the notional and interest to the Company, by assessing observable data from rating agencies, developments in credit spreads, current financial data (such as recent financial information and cash flows) and other publicly available data and by discussing and obtaining information from the group auditor.
Performing inquiries of the management board as to their knowledge of going concern risks beyond the period of the management board’s assessment.

We concluded that management’s use of the going concern basis of accounting is appropriate, and based on the audit evidence obtained, that no material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the financial statements. We have communicated the key audit matters to the management board. The key audit matters are not a comprehensive reflection of all matters identified by our audit and that we discussed. In this section, we described the key audit matters and included a summary of the audit procedures we performed on those matters. We addressed the key audit matters in the context of our audit of the financial statements as a whole, and in forming our opinion thereon. We do not provide separate opinions on these matters or on specific elements of the financial statements. Any comment or observation we made on the results of our procedures should be read in this context. Due to the nature of the Company, key audit matters do not change significantly year over year. Compared to last year there have been no changes in key audit matters.

Deutsche Post Finance B.V. - ZWEN3TFVEKTP-714785583-14 Page 6 of 12

Key audit matter

Valuation and existence of the loans to group companies
Notes 9 and 17

We considered the valuation and existence of the loans to group companies, as disclosed in notes 9 and 17 to the financial statements for a total amount of €486,419,945 to be a key audit matter. This is due to the size of the loan portfolio in combination with the fact that the management board’s assessment of objective evidence of impairment is very important and judgmental. As a result, any impairment may have a material effect on the financial statements. The basis for determining any expected credit loss pursuing to IFRS 9 is the classification and measurement of financial instruments. The Company has performed an assessment to conclude whether the cash flows from financial instruments fulfil the requirements of the SPPI test (solely of payment of principal and interest). The management board has determined that all loans issued are categorized as stage 1 loans, hence only a twelve-month expected credit loss (‘ECL’) has been recognized. The management board monitor the need for changes in the methods, significant assumptions or the data used in making the accounting estimate by monitoring key performance indicators that may indicate unexpected or inconsistent performance. The management board did not identify any objective evidence that a loan is impaired.

We performed the following procedures to test the existence of the loans issued to the Deutsche Post DHL group companies and to test the management board’s assessment of the expected credit loss to support the valuation of the loans to group companies:

With respect to the ECL calculation, we determined that the loans qualify as stage 1 loans by assessing the actual performance of the loans (i.e. no significant deterioration of credit risk).# Report of Independent Registered Public Accounting Firm

To the Management Board and Shareholders of Deutsche Post Finance B.V.

Audit of the Financial Statements

We have audited the accompanying financial statements of Deutsche Post Finance B.V. as of December 31, 2021, and for the year then ended, which comprise the statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows, and notes to the financial statements, including a summary of significant accounting policies.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of Deutsche Post Finance B.V. at December 31, 2021, and the results of its operations and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union and Part 9 of Book 2 of the Dutch Civil Code.

Basis for Opinion

We conducted our audit in accordance with the Standards of the Public Company Accounting Oversight Board (United States) and auditing standards generally accepted in the Netherlands. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.

We are required to be independent of Deutsche Post Finance B.V. and to meet our other ethical responsibilities, in accordance with the ethical requirements of the Netherlands, including those set out in the Verordening Gedrags- en Beroepsregels Accountants (Code of Conduct for Registered Accountants). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Expected Credit Losses (ECL) on Loans

We evaluated the financial position of the Deutsche Post DHL group companies to which loans have been provided by assessing the latest available financial information (such as result and equity) and their ability to repay the notional and interest payments to the Company in order to assess if there are no adverse conditions present suggesting to classify the loans as stage 2 or stage 3 loans.
We analyzed if there were any loss events at an individual loan level by challenging the valuation assessments prepared by the management board, which we did by analyzing the financial situation of the group companies to which loans have been provided.
We compared our own estimates of the fair values of the loans issued with those made by management.
For the ECL, we assessed that the impairment methodology and model applied by the Company were in accordance with the requirements of IFRS 9.
We recalculated the ECL and reconciled input parameters used to external sources.

Deutsche Post Finance B.V. - ZWEN3TFVEKTP-714785583-14 Page 7 of 12

Key audit matter

Our audit work and observations

We assessed that the model used by the client as part of the impairment methodology was appropriate considering the characteristics of the loan portfolio of Deutsche Post Finance B.V.
We confirmed the existence of the loans with the counterparties integrally.
We verified that the required disclosures in the financial statements with respect to IFRS 9 were sufficient and in line with the applicable requirements.

We found the management board’s assessment to be adequate. Our procedures as set out above did not indicate material differences.

Derivative valuation

Note 13 and 18

We consider the fair value of the derivative portfolio of €13,057,253 as disclosed in note 13 and 18 to the financial statements and used in the Company’s hedge effectiveness testing to be a key audit matter. This is due to the nature of the portfolio that includes a longer-dated interest rate swap. The market for these swaps is not always fully liquid and therefore valuation is a complex area.

We performed the following procedures to support the valuation of derivatives:

We tested the valuation of derivatives as well as the valuation of hedged items in hedge accounting relationships by comparing our own estimates of the values of the derivative with those made by management for the derivative.
We reconciled the interest rate curves and other market data with independent sources.
We assessed whether the settings used in the valuation system and the models are in line with market practice.
We also tested the mathematical accuracy of the models used and reconciled the outcome of the valuation system with the general ledger.

We found the management board’s assumptions used in the valuation of the derivative to be reasonable and appropriate compared to market data and the chosen models to be in line with market practice. Based on the procedures as set out above, we found no material differences.

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Key audit matter

Our audit work and observations

Hedge accounting

Note 13

We consider the application of hedge accounting to be a key audit matter. Refer to note 13 to the financial statements. This is because of the detailed formal and technical requirements that are relevant to the application of hedge accounting and because inappropriate application of these requirements can lead to a material effect on the financial statements.

We performed the following procedures to support the appropriateness of the application of hedge accounting:

We tested integrally whether the hedge documentation and hedge effectiveness testing as prepared by the management board met the requirements of IAS 39 Financial Instruments, and whether the hedge effectiveness test was mathematically correct.
We reconciled the outcome of the effectiveness testing for the derivative portfolio as a whole to the financial statements.

Based on the procedures as set out above we found the application of hedge accounting to be appropriate.

Report on the Other Information Included in the Annual Report

The annual report contains other information. This includes all information in the annual report in addition to the financial statements and our auditor’s report thereon.

Based on the procedures performed as set out below, we conclude that the other information:

is consistent with the financial statements and does not contain material misstatements;
contains all the information regarding the management report and the other information that is required by Part 9 of Book 2 of the Dutch Civil Code.

We have read the other information. Based on our knowledge and the understanding obtained in our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements. By performing our procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code and the Dutch Standard 720. The scope of such procedures was substantially less than the scope of those procedures performed in our audit of the financial statements.

The management board is responsible for the preparation of the other information, including the management report and the other information in accordance with Part 9 of Book 2 of the Dutch Civil Code.

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Report on Other Legal and Regulatory Requirements and ESEF

Our Appointment

We were appointed as auditors of Deutsche Post Finance B.V. This followed the passing of a resolution by the shareholders at the annual general meeting held on 7 April 2021. Our appointment has been renewed annually by shareholders and now represents a total period of uninterrupted engagement of 19 years.

European Single Electronic Format (ESEF)

Deutsche Post Finance B.V. has prepared the annual report, including the financial statements, in ESEF. The requirements for this format are set out in the Commission Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single electronic reporting format (these requirements are hereinafter referred to as: the RTS on ESEF).

In our opinion, the annual report prepared in XHTML format, including the financial statements of Deutsche Post Finance B.V., complies, in all material respects, with the RTS on ESEF.

The management board is responsible for preparing the annual report, including the financial statements, in accordance with the RTS on ESEF. Our responsibility is to obtain reasonable assurance for our opinion on whether the annual report complies with the RTS on ESEF.

Our procedures, taking into account Alert 43 of the NBA (Royal Netherlands Institute of Chartered Accountants), included amongst others:

Obtaining an understanding of the entity’s financial reporting process, including the preparation of the annual report in XHTML format.
Examining whether the annual report in XHTML format is in accordance with the RTS on ESEF.

No Prohibited Non-Audit Services

To the best of our knowledge and belief, we have not provided prohibited non-audit services as referred to in article 5(1) of the European Regulation on specific requirements regarding statutory audit of public-interest entities.

Services Rendered

The services, in addition to the audit, that we have provided to the Company, for the period to which our statutory audit relates, are disclosed in note 34 to the financial statements.

Responsibilities for the Financial Statements and the Audit

Responsibilities of the Management Board

The management board is responsible for:

the preparation and fair presentation of the financial statements in accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code; and for
such internal control as the management board determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

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As part of the preparation of the financial statements, the management board is responsible for assessing the Company’s ability to continue as a going concern. Based on the financial reporting frameworks mentioned, the management board should prepare the financial statements using the going-concern basis of accounting unless the management board either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so. The management board should disclose in the financial statements any event and circumstances that may cast significant doubt on the Company’s ability to continue as a going concern.

Our Responsibilities for the Audit of the Financial Statements

Our responsibility is to plan and perform an audit engagement in a manner that allows us to obtain sufficient and appropriate audit evidence to provide a basis for our opinion. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high but not absolute level of assurance, which makes it possible that we may not detect all material misstatements. Misstatements may arise due to fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. Materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion. A more detailed description of our responsibilities is set out in the appendix to our report.

Eindhoven, 12 April 2022

PricewaterhouseCoopers Accountants N.V.

/PwC_Partner_ Signature/

Original has been signed by

A.J.M. Vercammen RA

Deutsche Post Finance B.V.# Appendix to our auditor’s report on the financial statements of Deutsche Post Finance B.V.

In addition to what is included in our auditor’s report, we have further set out in this appendix our responsibilities for the audit of the financial statements and explained what an audit involves.

The auditor’s responsibilities for the audit of the financial statements

We have exercised professional judgement and have maintained professional skepticism throughout the audit in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit consisted, among other things of the following:

Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the intentional override of internal control.
Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management board.
Concluding on the appropriateness of the management board’s use of the going-concern basis of accounting, and based on the audit evidence obtained, concluding whether a material uncertainty exists related to events and/or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report and are made in the context of our opinion on the financial statements as a whole. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluating the overall presentation, structure and content of the financial statements, including the disclosures, and evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the management board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. In this respect, we also issue an additional report to the audit committee in accordance with article 11 of the EU Regulation on specific requirements regarding statutory audit of public-interest entities. The information included in this additional report is consistent with our audit opinion in this auditor’s report.

We provide the management board with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related actions taken to eliminate threats or safeguards applied. From the matters communicated with the management board, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, not communicating the matter is in the public interest.

AI assistant

Deutsche Post AG — Annual Report 2021

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Deutsche Post Finance B.V. Annual Report 2021

Table of contents

1. Management Report

1.1 Introduction

1.2 Incorporation

1.3 Organizational Structure

1.4 Share Capital

1.5 Business overview, Purpose and Objects

1.6 Management Board

1.7 Main business developments

1.8. Management Board policy with respect to risks

1.9 Future business developments

1.10 Diversity

1.11 Responsibility Statement

2. Financial Statements

2.1 Balance sheet

2.2 Statement of comprehensive income

2.3 Statement of changes in equity

2.4 Cash flow statement

2.5 Notes to the Financial Statements

(1) General overview

(2) Going concern

(3) Basis of accounting

(4) New developments in international accounting under IFRS

(5) Critical accounting estimates and judgments

(6) Related party transactions

(7) Cash flow statement

(8) Foreign currencies

(9) Financial assets

(10) Cash pool receivables and payables

(11) Financial liabilities

(12) Offsetting financial instruments

(13) Derivative financial instruments and hedge accounting

(14) Interest income and expense

(15) Principles for the determination of the result

(16) Financial risk management

(17) Loans receivable from affiliates

(18) Derivatives

(19) Short-term receivables from affiliates

(20) Cash pool receivables

(21) Equity

(22) Bond

(23) Accrued interest

(24) Other current liabilities and accruals

(25) Interest income

(26) Interest expenses

(27) Other gains and losses

(28) Other operating expenses

(29) Income tax expense

(30) Additional disclosure on the financial instruments

(31) Employees

(32) Directors’ remuneration

(33) Commitments and rights not included in the balance sheet

(34) Independent auditor’s fees

(35) Post balance sheet events

3. Other information

1.9 Future business developments

1.10 Diversity

1.11 Responsibility Statement

2. Financial Statements

Before profit appropriation

2.1 Balance sheet

2.2 Statement of comprehensive income

Deutsche Post Finance B.V., Maastricht

2.3 Statement of changes in equity

Deutsche Post Finance B.V., Maastricht

2.4 Cash flow statement

Deutsche Post Finance B.V., Maastricht

2.5 Notes to the Financial Statements

(1) General overview

(2) Going concern

(3) Basis of accounting

(4) New developments in international accounting under IFRS

(5) Critical accounting estimates and judgments

Interest rate risk and interest rate management

Foreign exchange risk

Liquidity risk

Deutsche Post AG Annual Report 2021