DGAP-Ad-hoc: Deutsche Post AG / Key word(s): Final Results/Change in Forecast Deutsche Post AG: Measures to sustainably secure the further earnings growth in the PeP division. 08-Jun-2018 / 11:30 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- The management board of Deutsche Post AG has today decided on the measures to sustainably secure the further earnings growth in the PeP division. To counteract the decline in profitability in the Post - eCommerce - Parcel (PeP) division, which became evident already in Q1 the management board decided on a range of measures to specifically safeguard a positive earnings development in 2019 and 2020. The measures mainly target the areas of pricing, operating and indirect cost and a further improvement in productivity in the German postal and parcel business. The measures will only in parts help already in 2018, therefore the profit from operating activities (EBIT) prior to one-off cost is now expected to come in at around EUR 1.1 billion. This includes additional operating expenses for productivity improvements of around EUR 150m. In addition a restructuring charge of EUR 0.5 billion will be recognized in 2018 to implement measures. With the upcoming reporting for the first half of 2018 (scheduled for August 7th, 2018) the activities of the recently founded area of Corporate Incubations will be shown as part of the new line Corporate Functions together with Corporate Center/Other. The full-year result of Corporate Incubations is expected to be EUR -70 million. Including the above described effects, the management board expects in 2018 the consolidated EBIT to reach around EUR 3.2 billion. The PeP division is likely to contribute at around EUR 0.6 billion to this figure including the expected restructuring costs while the DHL divisions are still expected to reach around EUR 3.0 billion. The Corporate Functions result is expected to be at EUR 0.42 billion, including the unchanged projection for Corporate Center/Other of a result of around EUR -0.35 billion. The earnings forecast for 2020 is confirmed also due to the above mentioned measures: consolidated EBIT is expected to reach more than EUR 5.0 billion. The PeP division is expected to contribute around EUR 1.7 billion of this and the earnings contribution of the DHL divisions is forecasted to reach around EUR 3.7 billion. Corporate Functions is forecast to reach around EUR -0.35 billion. The reported Group Free Cash Flow for the full year 2018 excluding the debt-financed renewal of the Express intercontinental aircraft fleet is hence expected to exceed a minimum of EUR 1.0bn. Financial Indicators Explanations on these financial indicators are available in the 2017 Deutsche Post DHL Group Annual Report (see page 36f.), which is published on the company's website at the link below: http://www.dpdhl.com/en/investors/events_and_presentations/reporting/2018/FY2017.html --------------------------------------------------------------------------- 08-Jun-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- 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.dpdhl.com ISIN: DE0005552004 WKN: 555200 Indices: DAX Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange End of Announcement DGAP News Service --------------------------------------------------------------------------- 693719 08-Jun-2018 CET/CEST