From a national to a global network

Thomas Baldry, Dubai, November 15th 2006

Thomas Baldry · Deutsche Post World Net · Dubai · November 15th 2006 Slide 2

Restructuring and Privatisation of Deutsche Post

Revenues in €bn

60.0

1990 2006

9.5

x 6

3.9

1990 2006

-0.72

Profit in €bn

DPWN Corporate Transformation Process

Thomas Baldry · Deutsche Post World Net · Dubai · November 15th 2006 Slide 3

Privatisation (1995)

Government agency

Headed by Ministry

Posts, telecom-munications and bank all part of one organisation

Prior to 1990

Separation of posts, telecom-munications and bank

Separation of regulatory and entrepreneurial tasks

Postal service managed as private company

Corporatisation (1990)

Step by step to competition

Licensing system for market entrance

Comprehen-sive sector-specific regulation

IPO 11/2000

Liberalisation (1998)

Privatisation completed

Liberalisation of postal markets in Europe completed

Scale back of sector-specific regulation

Vision 2009

Foundation of Stock Copora-tions

Universal ser-vice guaranteed by Constitution

Postal services as private task

No new civil servants

The legal and regulatory environment in Germany

Thomas Baldry · Deutsche Post World Net · Dubai · November 15th 2006 Slide 4

Turnaround

InternationalExpansion

1990-19971998-2000

2001-2005

2006-2009

Global Player

Becoming first choice for our customers worldwide

Goals

I. Become first choice for customers worldwide in the fast growing global logistics industry

II. Mobilize and enable our 500,000 employees toimprove quality andproductivity towards worldclass performance

III. Achieve further strong earnings improvement with an EBIT-target ofminimum 5 Billion EUR by 2009

DPWN‘s way from a national postal operator to a global player

Thomas Baldry · Deutsche Post World Net · Dubai · November 15th 2006 Slide 5

Deutsche Post World Net in a nutshell

MAIL

Germany• Largest European provider of mail services• Leading position in Europe in transit time and automation• More than 72 M shipments per day

EXPRESS LOGISTICS

Worldwide • No 1 in contract logistics worldwide• No 1 in Air Freight• No 1 in Sea Freight Global customer base (50% of Forbes 500 companies)

FINANCE

Germany• Germany‘s leading retail bank• 12.3 M customers• Total assets € 140 Bn

EXPRESS

Worldwide• No. 1 in international express delivery• Serving more than 4 M customers Operating in over 220 countries• Servicing 120’000 destinations globally

Revenue 2006:> € 60 Bn

More than 57% outside Germany

Thomas Baldry · Deutsche Post World Net · Dubai · November 15th 2006 Slide 6

Challenges for the

postal world

One stop shoppingOne stop shopping DigitisationDigitisation

OutsourcingOutsourcing Changing customer demandsChanging customer demands

Electronic substitutionElectronic substitution RegulationRegulation

Liberalisation and increasing competitionLiberalisation and increasing competitionInternationalisationInternationalisation

Major challenges for the Posts

Thomas Baldry · Deutsche Post World Net · Dubai · November 15th 2006 Slide 7

Different strategies to meet the challenges

Defending thecore businessDefending thecore business

Quality improvement

Moving beyond thecore business

Moving beyond thecore business

Cost flexibilisation

Internationalization

Expanding theproduct range

Deepening thevalue chain

Efficiency improvement

Thomas Baldry · Deutsche Post World Net · Dubai · November 15th 2006 Slide 8

Los Angeles

Hong KongDubai

Buenos Aires

Singapore

Sydney

Newark

Miami

Utrecht

Mexico City

Cooperation with

Tokyo

Joint venture with

London

Chicago

Cooperation with USPS

Frankfurt

Employees Countries

Global Mail 3.680 15

Value-addes Service- Germany 5,170 1

- Williams Lea 6.510 24 International

Important domestic and international processing centres

Williams Lea

DHL Global Mail‘s international network

Thomas Baldry · Deutsche Post World Net · Dubai · November 15th 2006 Slide 9

Gateway to market

HubTranspacific networkTransatlantic networkEU-AP v.v. network

Source: DHL, Roland Berger

Leading Global Express Air Network

DHL’s Air Network of the future

DHL is increasingly linking its extensive regional air networks...

Thomas Baldry · Deutsche Post World Net · Dubai · November 15th 2006 Slide 10

Thank you!Thank you!

Thank you!