1. DHL Asia Pacific and China Strategy
Frank Appel
Shanghai, 11 July 2012

2. Asia: Most dynamic global growth region
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 2

3. Asia Pacific: An important growth engine for global GDP …
Asia Pacific:
A major driver Population: ~ 56% (3,871 mn)
of the world GDP: ~ 30% (EUR 14.77 trillion)
Export: ~ 33% (EUR 4.84 trillion)
Dom. demand: ~ 30% (EUR 14.43 trillion)
Asia Pacific: Asia Pacific:
Strong and stable growth rates Fastest global growth region
GDP growth (real) in % (yoy) Share of absolute GDP growth (2010-2015)
10
Forecast 9.8%
APAC
5 13.7%
Americas
48.8%
0 Europe
27.7%
2012F
2013F
2014F
2015F
2007
2008
2009
2010
2011
Other
Source: IHS Global Insight (Deutschland) GmbH, 2012
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 3

4. … in the centre of gravity for global trade
Example:
Air Cargo & Containerized
Ocean Freight
Intra<->Asia Trade
32% of total trade (2015)
CAGR 7.4% *) Latin America<->Asia
5% of total trade (2015)
CAGR 11.2% *)
Middle East-Africa<->Asia
9% of total trade (2015)
CAGR 7.6% *)
More than 40% of global trade expected to originate from three
triangles of trade around Asia by 2015
Source: Seabury Cargo 2012; Air Cargo & Containerized Ocean Freight in Metric Tons
*) CAGR 2010-2015; for information: Europe<->Asia: 13% of total trade (2015), CAGR 6.4%; North America<->Asia: 13% of total trade (2015); CAGR 6.4% 2010-2015
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 4

5. DHL Asia: A strong contributor to the Group
Revenue 20111)2): Asia Pacific
19%
EUR 38.9bn
Others
Revenue 20111): Revenue 20111): Revenue 20111):
EUR 11.4bn EUR 10.9bn Asia Pacific EUR 13.1bn Asia Pacific
Asia Pacific
9%
30% 26%
Others Others Others
Clear market leadership in No. 1 in air freight, No. 2 Market leader in contract
Asian TDI in ocean freight logistics in Asia
1) External revenue = revenue generated by the divisions from non-Group third parties; 2) incl. DHL Freight
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 5

6. We are pioneers in Asia, continuously expanding operations
NOT EXHAUSTIVE
1980 2000 2004
DHL entered China through Central Asia Hub DHL acquires 68% Today
an agency agreement with (Hong Kong) stake in Blue Dart
Sinotrans begins operations (India)
New openings
1991 2003 2009
DHL Danzas Air & Ocean started DHL acquires DHL opens domestic North Asia Hub,
from a representative office stake in Sinotrans transportation hub (supply Shanghai
chain) in Shanghai (Express)
DHL established presence in DHL expanded into global forwarding DHL established presence in Future
China through Int’l Express and contract logistics segments dom. transportation services Investments
1980 1990 2000 2005 2010
1986 2002 2007
DHL established JV DHL acquires stake in Air DHL first int’l provider MegaHub,
with Sinotrans Hong Kong of dom. airfreight Hong Kong
services in China (Supply Chain)
1998 2005
Danzas Z.F. Freight Agency DHL inaugurates Oceania
Co. established as a JV Hub at Sydney Airport
Source: DHL, “DHL Business Strategy in China” (ICFAI Center for Management Research, 2004)
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 6

7. Key growth levers in Asia
Improving connectivity, facilitating trade growth Next day delivered everywhere in EU
North Asia Hub for Early bird Overnight Europe
EXPRESS in Shanghai from Pearl River Delta
DHL is the most
reliable and fastest
Express services
provider in Asia
GoWest Trans Pacific Flights
Following growth westward Intra-Asia andTrans-Pacific routes
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 7

8. Continuously expanding in Asia
New projects in Asia in 20121) New openings in China
EXEMPLARY July 2012
Mumbai
Shanghai
Distribution center for Life DHL Door-to-More direct
Sciences & Healthcare North Asia Hub
distribution solution from
Jun. 2012 Asia to Europe Hong Kong
(Global Forwarding) Supply Chain
Round-the-world-flight, Jun. 2012 MegaHub
linking Hong Kong, Los
Angeles and Leipzig Shenzhen2)
Hong Kong
Mar. 2012 DHL Integrated
New International Service
Center Logistics Center
Jakarta
May 2012
New multi-user warehouse December 2012
Jun. 2012 Hong Kong Shanghai
Direct flights from Hong
Korea Airfreight
Kong to Chengdu and Ho
LCL global forwarding hub bonded facility
Chi Minh City
Aug. 2012 (planned) expansion
June 2012
1) Multitude of other investment projects ongoing, for example upgrade and enhance capacity & capability of AFR/OFR/RFR/multimodal products/facilities in Mid-West China,
furthermore upcoming launch of multi-national LCL gateway in Korea; 2) Shenzhen Qianhaiwan Free Trade Port Area
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 8

9. China: Global hub and dynamic domestic market
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 9

10. China will remain the engine of the global economy until 2025
Real GDP Growth Origin of Growth 2010 – 2025
(Indexed 2010 = 100%) Origin of Absolute GDP Growth
300 (EUR bn)
China 9,719
250
4,616
200 4,408 4,519
APAC w/o China 3,664
World 5,103
150 North America (China)
Europe
0 Europe RoW North APAC
2010 2015 2020 2025 America
Source: Copyright © IHS Global Insight (Deutschland) GmbH, 2012
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 10

11. The China of tomorrow
China in 2025
• 5 million buildings
– Half of the world’s buildings constructed until 2025
• 50,000 skyscrapers
– The equivalent to constructing up to 10 New York cities
• 5 billion square meters of road will be paved
– Today it’s only half of it and even less than in Germany
• China’s urban population increase by 350 m
– More than the population of today’s United States
• 221 cities with more than one million people
– Europe has 35 today
Source: McKinsey Global Institute “Preparing for China’s urban billion”, 2009
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 11

12. Logistics has a key role to play in China’s development
As China continues on a path of globalization, logistics has a key role to play:
• Help China integrate stronger with the global economy by
facilitating international and domestic trade flows
• Help accelerate the pace of innovation with intelligent
logistics solutions
• Help international players to be successful in China and
support Chinese „heroes“ in their quest for internationalization
• Support shift to environmentally conscious business
practices with green logistics solutions
• Offer efficient logistics solutions as key enabler of growth
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 12

13. DHL Express in China:
First foreign express company to enter China in 1980
Key strategic growth levers
High Potential Regions:
Southwest (Chengdu & Chongqing), central
(DHL – Sinotrans) cities (Wuhan & Zhengzhou, Northeast Region
(Dalian, Qingdao, Jilin, Shenyang)
• >30 years of experience in China
• Covering >400 cities in China
• >110,000 customers Emerging industries:
• Appr. 6,000 employees Consumer electronics, Automotive, Healthcare,
• >30% market share in time definite Engineering & Manufacturing, Fashion
international
Specific Initiatives:
Growth initiatives targeted at specific industry
sub-segments at city or provincial level,
e.g. Wedding Gowns from Suzhou
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 13

14. DHL Global Forwarding in China:
No. 1 Freight Forwarder in the market
Key strategic growth levers
Continuous sector development:
Maintain strength in Hi-Tech and further expand
into Fashion & Luxury, Automotive,
• First foreign logistics company to Life Sciences, Energy, Retail and Engineering &
enter China domestic airfreight Manufacturing
market
• >35,000 customers Expand customer portfolio:
• Around 3,000 employees From global multi-nationals to fast-growing
enterprises and local small- and medium-sized
• Appr. 400,000 sqm of warehouse
enterprises
space
Deliver operational excellence:
Enhance exception management and
complaint handling through one-touch initiative
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 14

15. DHL Supply Chain in China:
Integrated logistics solutions for key industries
Key strategic growth levers
Sector-focused business development
Leverage on global solutions with adaptation to
• >25 years experience with domestic local requirements
transportation and distribution in
China
• >4,000 employees
Focus on operational excellence and quality
• Around 200 customers Continuous investment in IT applications and
• >600,000 sqm of warehouse and warehouse footprint
cross docking space 1)
Talent & people development
Consultative selling and key account
management
1) including Hong Kong and Taiwan
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 15

16. Recent investment: New North Asia Hub in Shanghai
Opening ceremony: 12 July 2012
Regional Express Hubs North Asia Hub Shanghai
in Asia Pacific at Pudong International (PVG)
Central Asia
Hub Hongkong
Seoul North Asia
Beijing
Hub Shanghai
Delhi Taipei
Manila • First-class Express hub
Bangalore Bangkok
Singapore • Part of multi-hub strategy in Asia
Pacific
Sydney • Investment of US$ 175m
Auckland
• New capacity, greater flexibility and
Hubs reliability for guaranteed time-definite
Regional Hubs delivery
Commercial Air Hubs
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 16

17. Outlook for Logistics Service Providers in China
There is enormous potential for logistics services in China.
But some key challenges remain:
Economy still growing faster than China’s logistics
1
infrastructure
2 Reliable policy framework for logistics
3 Market fragmentation
4 Stringent regulations for licensing, transport, customs
5 Strong demand for talent
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 17

18. Our DHL strategy in a nutshell:
Continuously increasing our strength in China and beyond
The importance of China and its growth potential is huge
(>25% of global GDP growth between 2010 and 2015).
DHL is a pioneer in China and leading logistics provider in the market
(e.g. 40% market share in international express).
We continue expanding our presence in China by investing in
infrastructure, service excellence and sector management.
The new North Asia Hub in Express is an important milestone,
strengthening our leading position in the region substantially.
Frank Appel | Shanghai | 11 July 2012 Deutsche Post DHL | Page 18

19. DHL Asia Pacific and China Strategy
Frank Appel
Shanghai, 11 July 2012