Dr Frank Appel

Chief Executive Officer
Deutsche Post AG

   

10 May 2010
First quarter of 2010

Dr. Frank Appel

Dear Shareholders,

Your company, Deutsche Post DHL, has made an encouraging start in 2010: efforts to reorganise its business and substantially reduce costs during the year of the economic crisis are now starting to pay off. For example, margins increased in nearly all of our divisions in the first quarter of 2010 compared with 2009. We maintained our financial stability at a high level and also achieved a solid operating cash flow.

 

At the same time we see clear indications of an economic recovery. Growth in Asia especially continued to accelerate, which also led to a sizeable increase in transport volumes.

 

Against this backdrop, consolidated revenue increased by 4.4% to €12 billion in the first quarter of 2010. We saw encouraging organic growth, especially in the EXPRESS and GLOBAL FORWARDING, FREIGHT divisions. Combined with rising sales volumes, this enabled us to record an impressive result in the first three months of this year: EBIT before non-recurring items improved by 81.4% to €566 million.

 

The measures we took last year have allowed us to successfully master the crisis and secure our position as the world’s leading logistics service provider and Europe’s largest postal company.

 

Provided that trade volumes continue their moderate recovery, we are well on our way to meeting our targets for financial year 2010. We continue to expect consolidated EBIT before non-recurring items to be between €1.6 billion and €1.9 billion, although we now assume that we will be able to close the year as a whole at the upper end of this range. Deutsche Post and DHL should contribute nearly equally to this result.

 

On 29 April, a stable dividend payment of €0.60 per share was made to you for financial year 2009. We want you – our investors – to continue to see us as reliable and predictable in the future. We feel our new financial strategy has laid a very solid foundation for achieving this goal.

 

 

Yours faithfully,

 

 

Frank Appel

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