02.04.2014
Deutsche Post AG DE0005552004
DGAP-News: Deutsche Post DHL announces 'Strategy 2020'
DGAP-News: Deutsche Post AG / Key word(s): Strategic Company Decision
Deutsche Post DHL announces 'Strategy 2020'
02.04.2014 / 07:00
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Deutsche Post DHL announces "Strategy 2020"
- Three pillars: Concentrating on core strengths, extending the company's
quality leadership and seizing opportunities in new growth areas
- Group targets average annual EBIT increase of more than 8 percent
through 2020; DHL expected to see annual EBIT growth of around 10
percent; MAIL EBIT to increase by around 3 percent p.a.
- Emphasis on organic expansion, emerging markets and eCommerce-related
logistics
- CEO Frank Appel: "We are building on our achievements and seizing new
opportunities for additional profitable growth"
Frankfurt am Main/Bonn, April 2, 2014: Deutsche Post DHL, the world's
leading mail and logistics group, announced its new "Strategy 2020:
Focus.Connect.Grow." today in Frankfurt - a continuation of the positive
momentum generated by the successful "Strategy 2015" defining the Group's
next phase of development. Strategy 2020 outlines the Group's strategic
priorities for the coming years and underscores its goal to become the
company that defines the logistics industry. Among the focus areas of
Strategy 2020 are the further expansion of logistics services in the
world's emerging markets and the international expansion of the company's
successful parcel business in order to take advantage of the global
eCommerce boom. Consistent with Strategy 2015, the emphasis will remain on
organic growth.
"The goal of Strategy 2015 was to unleash the tremendous power of our
organization, and to unlock our full potential. Since introducing the
strategy in 2009, we have seen significant revenue growth and a
disproportionate increase in operating profit. We are on course to achieve
our Strategy 2015 goals," said Deutsche Post DHL CEO Frank Appel. "Our new
'Strategy 2020: Focus.Connect.Grow.' builds on what we have achieved so
far. It will power the Group's next big growth stage and open up new
opportunities for sustainable profitable growth in today's ever-changing
environment. Our aspiration is to be the leading force in the logistics
industry by 2020 and the company that defines logistics."
Financial goals: Significant earnings growth through 2020
The new strategy includes ambitious financial targets: For the period 2013
to 2020, the Group expects earnings growth of more than 8 percent per year
on average based on the 2013 EBIT of EUR2.86 billion. The 2015 EBIT target
of between EUR3.35 billion and EUR3.55 billion remains unchanged. Despite
the general slowdown of growth momentum in the forwarding market, the Group
expects its DHL divisions to continue to be the main contributor to the
Group's revenue and profitability growth, with an annual average EBIT
growth of approximately 10 percent per year over the period. In addition,
the Group also sees the strongly increasing importance of the parcel
business powering an improvement in operating profit of around 3 percent
per year on average for its MAIL division. Furthermore, the Group expects
to reduce Corporate Center/Other expenses to below 0.5 percent of
consolidated revenues through year 2020.
"Even with the significantly increased earnings level achieved over the
last several years, our new strategy will enable us to continue on our
growth path beyond 2015 and significantly increase our profitability year
by year. And we will achieve this primarily through organic growth," said
Larry Rosen, the CFO of Deutsche Post DHL.
New strategy builds on the successful implementation of "Strategy 2015"
The announcement of its new strategy comes at a time when Deutsche Post DHL
is feeling the full impact of its "Strategy 2015". Despite the profound
structural change within MAIL, the division's earnings have been stabilized
thanks to the successful expansion into high-growth segments such as the
parcel business. The Group's targeted efforts to further enhance DHL's
unique position in global growth markets and to expand its activities in
highly attractive business segments such as international express delivery
and contract logistics have also paid off. The Group has also made
significant progress toward achieving its overarching goal of becoming the
provider, employer and investment of choice within the logistics industry.
This is reflected in continuously improving customer and employee survey
results as well as the significant share price increase. At the same time,
the Group lived up to its corporate responsibility and made a major
positive contribution to society.
A three-pillar strategy: Focus.Connect.Grow.
Built upon the proven foundation of "Strategy 2015", the Group's new
"Strategy 2020" will help the company anticipate and prepare early for
changes in the market, in the competitor landscape, and in customer
requirements. As far as trends go, the logistics industry is seeing a
continuing shift towards emerging markets. The eCommerce segment, while
posting accelerated growth, brings with it steadily increasing consumer
demands in regard to the convenience and flexibility of delivery. As
digitization also leads to changes in the competitive environment in the
logistics markets, new opportunities and new business models for logistics
companies are evolving. Moreover, customers are increasingly considering
the company's contribution to the environment and society when choosing a
provider.
Against this background, Deutsche Post DHL has built its new "Strategy
2020" on three pillars.
Focus: The Group will continue to concentrate on its existing strengths,
with the goal of further expanding margins.
The Group's successful stakeholder orientation will continue to be a major
driver of the company's future activities. Part of the Focus pillar is a
clear confirmation that Deutsche Post DHL is a family of four
high-performance divisions, each providing excellent services in clearly
defined markets. At the same time, these divisions are unified through a
common understanding of market and customer needs and efficient Group-wide
service units. Logistics will remain at the core of the Group's business
activities due to growth and overall attractiveness. The new strategy is
also an articulation of the Group's commitment to its MAIL division, which
will be renamed to "Post - eCommerce - Parcel" to better reflect the
division's business activities in the years to come. In addition to
traditional postal services, the division will increasingly focus on
expanding the products and services offered for the high-growth eCommerce
market.
Connect: Deutsche Post DHL will further systematically increase
connectivity in the organization in order to extend its quality leadership
and to deliver consistent, top service to its customers.
One of the central components of the second "Strategy 2020" pillar is the
roll-out of certified training programs across the entire Group. So far
some 100,000 employees from the company's EXPRESS division have
successfully undergone the Certified International Specialist training
program. Deutsche Post DHL plans to train more than 80 percent of its
worldwide workforce in comparable training programs across all of its
divisions by the year 2020. By making a significant investment in training
and development, the Group plans to meet customer requirements even better
than before and set the standards when it comes to service and product
quality. This large-scale training initiative designed to reach employees
at every level of the company is not just groundbreaking for the Group but
unique in the industry. Additional components of the strategy's second
pillar include the commitment to building a uniform leadership culture
across the Group and tapping the full potential of the Group's strong
brands as well as a more customer-centric cooperation between the
individual DHL divisions. This also includes the development of tailored,
climate-friendly solutions as part of the Group's GoGreen program.
Grow: Deutsche Post DHL will tap new market opportunities to continue to
grow above market average.
Deutsche Post DHL will continue to emphasize organic growth through
expansion into new countries and regions, and through tailored solutions
that respond to ever-evolving customer requirements in both existing and
new market segments. A significant further expansion into emerging markets
is a key aspect of the growth strategy. Today, emerging market revenues
contribute just over 20 percent of the Group's revenues; by 2020, the Group
expects this figure to climb to 30 percent. Given the significant increase
in revenues expected by the year 2020, this means a substantial increase in
absolute revenue growth in the emerging market countries. Another major
area of focus will be eCommerce-related logistics services. Here, Deutsche
Post DHL wants to establish itself as the number one provider of
cross-border eCommerce services on the most important international trade
lanes, and one of the top three B2C domestic parcel delivery service
providers in selected markets. The Group plans to gradually export its
industry-leading expertise in the parcel business to other parts of the
world, taking its German success model to countries in Europe, Asia and the
Americas. To this end, it already shifted parcel activities in the Benelux
countries, Poland, the Czech Republic, and India from DHL to the MAIL
division earlier this year.
The Group's well-established finance strategy, which aims to maintain
Deutsche Post DHL's strong credit rating and ensure the company's financial
stability and flexibility over the long term, will remain unchanged and
serve as the framework for growth. Accordingly, the Group plans to pay
annual dividends of between 40 percent and 60 percent of its consolidated
net profit adjusted for one-time effects to shareholders. While the
company's capital expenditure intensity will remain unchanged at around 3
percent of revenues, excess liquidity is planned to be used primarily for
the continued gradual funding of pension obligations as well as for share
buybacks or special dividends.
"Over the past several years we have demonstrated what we are capable of
over the last several years," said CEO Frank Appel. "Now we will accelerate
our organic growth and continue to pursue a clear vision: we want Deutsche
Post DHL to be not only the most global company in our industry, but also
the clear leader in quality and customer orientation."
- End -
Note: Please visit www.dpdhl.com for additional information about Strategy
2020. The press conference will be broadcast live on the Internet starting
at 10:00 AM. The Capital Markets Day presentations can be followed on the
Internet starting at 2:00 PM.
Media Contact:
Deutsche Post DHL
Media Relations
Sebastian Steffen
Phone: +49 (0)228 182-9944
E-mail: [email protected]
E-Postbrief: [email protected]
End of Corporate News
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02.04.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Deutsche Post AG
Charles-de-Gaulle-Straße 20
53113 Bonn
Germany
Phone: +49 (0)228 182 - 63 100
Fax: +49 (0)228 182 - 63 199
E-mail: [email protected]
Internet: www.dp-dhl.de
ISIN: DE0005552004
WKN: 555200
Indices: DAX
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX
End of News DGAP News-Service
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