2017 Annual Report 2017 Annual Report 2017 COM•MIT•MENT /kəmtmənt/ noun : The state or quality of being dedicated to a cause, activity etc. In this time of rapid environmental, eco­ ranging experience. The management team nomic and political change, there is a at Deutsche Post DHL Group is absolutely growing need for credibility and certainty. committed to this system of values and the How can businesses meet this need? Not company’s long­term success – and each only is everything around us changing, our board member embodies this in their own own business, our corporate culture and way and according to their own personal the way we work are also transforming. As strengths. On the following pages, we illus­ a Group, we need to systematically improve trate what we stand for and how that fuels the quality of our services and invest con­ our drive towards the future – in images tinuously in our business whilst also sharp­ and words and with pleasing figures for the ening our customer centricity. 2017 financial year. Through all this change, we rely upon our strengths: dependability, dedication and continuous innovation based upon wide­ 2 4 Once a year he goes mountain biking with colleagues, gaining new insights on the way. DR FRANK APPEL PERSPECTIVE 8 She wants to understand things and therefore asks the right questions. MELANIE KREIS CURIOSITY 12 With his team he supports TEAM SPIRIT other teams in the company. DR THOMAS OGILVIE 3 16 Always wanting to get better, that’s his demand. DR H. C. JÜRGEN GERDES 18 Being fast, but never losing INNOVATION control of processes, is his focus. KEN ALLEN EXPERIENCE 20 SPEED He has learnt to simplify and thereby reduce complexity. TIM SCHARWATH A GROUP MANAGEMENT REPORT 25 — 88 B CORPORATE GOVERNANCE 89 — 100 C CONSOLIDATED FINANCIAL STATEMENTS 22 101 — 176 The strategy gives him the goal and he doesn’t lose sight of it. ENDURANCE JOHN GILBERT D FURTHER INFORMATION 177 — 184 4 PERSPECTIVE DR FRANK APPEL Commitment 5 FRANK APPEL NOT ONLY ENJOYS THE PHYSICAL CHALLENGE OF MOUNTAIN BIKING, THE CEO SAYS THE SPORT ALSO PROVIDES NEW OUTLOOKS AND PERSPECTIVES. ONCE A YEAR, HE GOES ON A BIKE TRIP WITH COLLEAGUES TO PEDAL MOUNTAIN TRAILS, PUSH HIMSELF AND GET A VIEW OF WHAT’S TO COME. KILOMETRE: ZERO; ELEVATION: 944 M, AchENKIRch SADDLE UP! — Around three dozen Group employees have joined Frank Appel for a mountain bike ride near picture­perfect Lake Achensee, in the Austrian state of Tyrol. It’s about 8.30 in the morning, and the temperature is a pleasant 17° Celsius with light easterly winds as they hop on their saddles and start pedalling on what is going to be a 53km tour with a total climb of 1,150m. The first stage proves the hardest: the trail to a mountain cabin some 550m above their starting point is a steep climb with gradients up to 14%. Gufferthütte 1,400 It’s exactly the kind of trail that appeals to Frank Appel: “What I love about mountain biking is that your hard work and sweat are rewarded with panoramic views and great, exhila rating downhills. And it’s even better when you’re riding in a group. Everyone gives it their all – and we all share the 1,200 reward when we reach the top. It’s a pure endorphin rush.” 1,000 KILOMETRE: 13.2; ELEVATION: 1,434 M, GUFFERThÜTTE MAKING hEADWAY — “One way this mirrors professional life is that you also have to work hard in business if you want to achieve something. And like rolling 800 down a mountain on two wheels, there are also times when everything seems to work on its own. Unfortunately, the easy stages in which you can just coast along are shorter than the ones in which you have to give it your all. No matter what, 600 we always want Deutsche Post DHL Group to make head­ way. So while things are rolling along smoothly, we have to prepare for the times when the economy and our company face an uphill battle. Because there’s no doubt that those DR FRANK APPEL times will come. That said, if you always have your hands on the brakes, you’re going to quickly lose interest. Whether you’re steering a bike or a company, you have to take risks if Frank Appel says that at 1.92m he’s actually too you want to achieve ambitious goals. But they shouldn’t be tall for mountain biking. But no other sport offers incalculable risks. Otherwise you may easily slide off the trail a faster way to experience so many challenging ascents and beautiful views in such a short time. at the next curve.” km 5 10 15 6 Deutsche Post DHL Group — 2017 Annual Report KILOMETRE: 33.4; ELEVATION: 822 M, AScENT TO WALDhÄUSL STAYING FOcUSSED — “It’s correct to say that we currently find ourselves speeding along in what some consider limited visibility. No one can confidently predict today how technologies such as big data, robotics and artificial intelligence will transform our world tomorrow. On the other hand, the change won’t happen overnight. In our Group, we have solid teams that are monitoring and analysing these trends and developments. And we’re always looking very closely into whether and how we can improve our products and processes. At the same time, we’re also exploring ways to use our specialised skills and capabilities to pursue new business opportunities. We can take a rational look at all of these things and determine how important they are to our business. As a leader, it helps to have the experience to dis­ 1,400 tinguish between what’s relevant and what’s not; to recog­ nise the moment when more information is not going to lead KILOMETRE: 28.7; ELEVATION: 710 M, to deeper knowledge or better decisions – the moment when DEScENT FROM KAISERhAUS it’s time to take action. For example, I’m not the type of 1,200 DOING GOOD — “In my view, a company’s person who needs to be constantly inundated with ‘breaking purpose is not only to create value for shareholders. It’s also news’. What’s the point? I prefer to stay focussed on what about offering people a good job and a future. We want lies ahead – and rely on the expertise within our company.” to give something back to society. For example, a logistics company like ours is naturally a major emitter of carbon 1,000 emissions. In light of global warming, we’re making efforts to reduce these emissions. Our electric delivery vehicle, StreetScooter, which has become a real success story, is one example. This shows that we can do things that are both good for the environment and good for business. After all, 800 when we burn less fuel and reduce our carbon footprint, of course we also save money. What’s more, efforts to make Kaiserhaus our business more sustainable also motivate our employees. People would rather work for – and are more committed to – companies that aren’t focussed solely on making money. 600 That boosts our image as a Group, which in turn helps us recruit top talent. That’s another reason sustainable “Those who have projects such as StreetScooter play an important role in our economic success.” a clear perspective find their way.” km 20 25 30 35 Commitment 7 DR FRANK APPEL CEO Global Business Services Born in 1961 Member of the Board of Management since November 2002 CEO since February 2008 Appointed until October 2022 Waldhäusl NEURObiologist FREQUENT TRAVELLER KILOMETRE: 44; ELEVATION: 1,080 M, WALDhÄUSL KILOMETRE: 51.2; ELEVATION: 902 M, KNOWING WhERE YOU WANT TO GO — RETURN TO AchENKIRch “If you want to keep your eye on a goal and make progress LOOKING AT WhAT LIES AhEAD — towards it, you obviously need to know where you want to “As a Group, we need to systematically improve the quality go – and be able to communicate that vision to your team. of our services, permanently invest in our business and con­ The Deutsche Post DHL Group vision is clear: we want to tinuously improve customer satisfaction. That means some be the most global, customer­centric and digital logistics long ascents lie ahead, including some turning points where company in the world. When people think of logistics – no we will need to peek around the corner and adapt our matter where they are in the world – we want them to think business models. As long as we continue to have good people of us first.” with the right abilities on board, we’ll be able to make the adjustments necessary to deal with the new conditions and continue to move forwards. The same is true for mountain biking: When you come to a fork in the trail, you consult your map, get your bearings, and take a look at where you want to go and what lies ahead. And sometimes that means you have to adjust your speed and head in a new direction. That’s it.” 40 45 50 8 MELANIE KREIS CURIOSITY Commitment 9 “When curiosity is directed at serious things, we call it thirst for knowledge.” MARIE VON EbNER-ESchENbAch Naturally I’m a numbers person. As a physicist, I have, however, also learnt that it’s not enough to line up individual measurements. Instead you have to understand the laws of nature behind them – the overall meaning, the patterns. Physics teaches you to have a feel for numbers and patterns. You recognise it relatively quickly when something on your data sheet isn’t quite right.